/raid1/www/Hosts/bankrupt/TCR_Public/220906.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Tuesday, September 6, 2022, Vol. 26, No. 248
Headlines
3I AVI LLC: Missouri Court Grants in Part Proposed Sale of Assets
8233 ROXBURY: Seeks to Hire Havkin & Shrago as Bankruptcy Counsel
A.B.C. OF NORTH PALM: Sept. 21 Auction of North Palm Beach Property
AABAR INVESTMENTS: Chapter 15 Case Summary
ADAZPAY LLC: Ongoing Business Operations to Fund Plan
ADRIAN WYATT: Wins Cash Collateral Thru Sept 22
AEARO TECHNOLOGIES: 3M Appeals Court's Refusal to Stop Suits
AFFINITY EQUITY: Chapter 15 Case Summary
BAKERSFIELD OWL: Taps LK Professional as Bankruptcy Counsel
BBC GROUP: Affiliate Taps Seth D. Ballstaedt as Legal Counsel
BEP ULTERRA: Moody's Upgrades CFR & Senior Secured Term Loan to B2
BLACKSTONE ASIA: Chapter 15 Case Summary
BRAND44: Seeks Cash Collateral Access Thru Sept 26
BRAZEN SKY: Chapter 15 Case Summary
BRAZOS ELECTRIC: Fitch Withdraws 'D' Issuer Default Rating
BRIDGE GLOBAL: Chapter 15 Case Summary
BULLSTRAP LLC: Wins Cash Collateral Access Thru Sept 14
BURNS ASSET: Seeks to Hire J.M. Cook as Bankruptcy Counsel
C & M ELECTRICAL: Wins Final Cash Collateral Access
CAREPARTH HEALTHCARE: $630K Sale of Arlington Property Approved
CELSIUS NETWORK: Court Sets Auction Sale of Assets for Sept. 23
CLASSIC REFRIGERATION: Wins Cash Collateral Access on Final Basis
CORINTHIAN COMMUNICATIONS: Trustee Hires Locke Lord as Counsel
CPE FEEDS: Court Approves $650K Sale of North Plant to Ker-Tec
CPE FEEDS: Court Approves $755K Sale of South Plant to ABC Bank
DCP MIDSTREAM: Fitch Affirms 'BB+' Rating on Jr. Subordinated Debt
DOT DOT SMILE: Case Summary & 20 Largest Unsecured Creditors
EAST COAST WELDING: Case Summary & 20 Largest Unsecured Creditors
EBERHARDT PARTNERSHIP: Unsecureds Will Get 11.5% in Consensual Plan
EDGEWELL PERSONAL: S&P Alters Outlook to Neg., Affirms 'BB' ICR
ENDO INTERNATIONAL: TKD, et al. Advise on NAS Committee
ENTRUST ENERGY: Can Pursue Bid to Stop ERCOT's $296-Mil. Claim
ENVISION HEALTHCARE: S&P Upgrades ICR to 'CCC', Outlook Negative
ERIKA BLOOM: Case Summary & 15 Unsecured Creditors
EYEPOINT PHARMACEUTICALS: Compelled to Produce Sales Documents
FIRST GUARANTY: Court to Approve $4.8 Mil. Servicing Rights Sale
FLY LEASING: S&P Downgrades ICR to 'CCC-', On CreditWatch Negative
FREE SPEECH: Faces Another Sandy Hook Damages Trial
GAMESTOP CORP: S&P Withdraws 'B' Issuer Credit Rating
GB SCIENCES: Issues Options to Officers, Directors
GIRARDI & KEESE: Edelson Can Add Fraud Claims in Fee Case
GIRARDI & KEESE: Victims Sue Defunct Litigation Partners
GISSING NORTH AMERICA: Taps Carlson Gaskey as Special Counsel
GLOBAL ALLIANCE: Wins Cash Collateral Access Thru Sept 15
GLORIA JANSEN BURNS: $368K Sale of Santa Maria Property Approved
GOLDEN SPHINX: Chapter 15 Case Summary
GUARACHI WINE: Has Deal on Cash Collateral Access
HERITAGE FUNERAL: Continued Operations to Fund Plan Payments
HESS MIDSTREAM: Fitch Affirms 'BB+' IDR & Alters Outlook to Stable
HOME DEALS OF MAINE: Taps Tyra-Marie Mitchell as Real Estate Broker
HONX INC: Future Claimants' Rep Taps NERA Economic as Consultant
HOUSTON AMERICAN: Provides Update on Operations in Colombia
HYPER FUSION: Seeks Cash Collateral Access
ICU MEDICAL: Fitch Alters Outlook on 'BB' IDR to Negative
INSPIREMD INC: Two Proposals Passed at Annual Meeting
INTELLIGENT SURVEILLANCE: Spotlight App Agrees to Defer Payments
IRONWOOD FINANCIAL: Wins Cash Collateral Access Thru Oct 25
J MORALES INC: Seeks Chapter 11 Bankruptcy Protection
JGR GROUP: Wins Cash Collateral Access Thru Oct 4
JOHN COLEMAN: Court Approves $100K Sale of Carroll County Property
JORGABY DELIVERY: Voluntary Chapter 11 Case Summary
JORGABY FREIGHT: Case Summary & One Unsecured Creditor
JORGABY LOGISTIX: Voluntary Chapter 11 Case Summary
KC PARTNERS LLC: Files Bare-Bones Chapter 11 Petition
LAKEPORT CF: Taps Fairfield and Woods as Special Counsel
LEGACY POOLS: Luxury Pools Provider Dives Into Chapter 11
LENDMARK: Fitch Affirms 'B' Long-Term IDR, Outlook Stable
LEONARD BLOOM: GLDEX Buying San Diego Property for $6.495 Million
LEONARD BLOOM: Seeks Shortened Time on Sale of San Diego Property
LEONARD BLOOM: Sept. 9 Hearing on $6.495M San Diego Property Sale
LEVEL FOUR ORTHOTICS: Files for Chapter 11 to Sell to Bionic
LONESOME VALLEY: Wins Interim Cash Collateral Access
LUMILEDS HOLDING: Gibson Dunn Represents Term Lender Group
MARKET STREET: Files Bare-Bones Chapter 11 Petition
MASTEN SPACE SYSTEMS: Wins $1.4MM DIP Loan from Astrobotic
MATHESON FLIGHT: Committee Taps Felderstein as Bankruptcy Counsel
MIRACLE CENTER OF VENTURA: Returns to Chapter 11 Bankruptcy
MOLAOI RESTAURANT: Taps Koutsoudakis & Iakovou as Legal Counsel
MOUNTAIN PROVINCE: Fitch Cuts Issuer Default Rating to 'CC'
NEOVASC INC: To Participate in HC Wainwright 24th Annual Conference
NEW ERA: S&P Downgrades ICR to 'B', Outlook Stable
NEWAGE INC: Cash Collateral Access, $16MM DIP Loan OK'd
NEWAGE INC: Hits Chapter 11 Bankruptcy to Pursue Sale
NEXTEER AUTOMOTIVE: S&P Downgrades ICR to 'BB+', Outlook Stable
NIKKYO LLC: Seeks Cash Collateral Access
NJ CITY UNIVERSITY: Fitch Cuts IDR to 'BB+', On Watch Negative
OAKVIEW FARMS: Taps Tran Singh as Legal Counsel
OSG GROUP: Gets Court Okay of Prepackaged Bankruptcy Plan
OUTPUT SERVICES: Moody's Lowers PDR to D-PD Amid Bankruptcy Filing
PACIFIC RIM: Chapter 15 Case Summary
PACKABLE HOLDINGS: Sept. 9 Deadline Set for Panel Questionnaires
PARAMOUNT GLOBAL: Fitch Affirms BB+ Rating on Jr. Sub. Debt
PARETEUM CORP: Committee Taps Sidley Austin as Legal Counsel
PAVERS INC: $1M Sale of Salina Property to Charles Sargent Approved
PAVERS INC: Court Sets Auction of Personal Assets for Sept. 20-26
PAVERS INC: Wins Final Cash Collateral Access Thru Jan 2023
PG&E CORP: 9th Circuit Split Reverses Interest Rate Ruling
POWER STOP: S&P Downgrades ICR to 'B-', Outlook Negative
PUERTO RICO: Govt. Agencies Owe PREPA $233 Mil. Overdue Power Bills
PWM PROPERTY: Court Approves Chapter 11 With Reduced Releases
RAYMOND JAMES: Fitch Gives BB Rating on Series A/B Preferred Stock
RITCHIE BROS: Moody's Affirms 'Ba2' CFR & Alters Outlook to Stable
ROCK SPLITTERS: Taps Professional Business Services as Accountant
ROCK SPLITTERS: Wins Cash Collateral Access Thru Oct 7
ROCKING M MEDIA: Wins Cash Collateral Access on Final Basis
SAGICOR FINANCIAL: Fitch Puts BB IDR on Rating Watch Positive
SCUNGIO BORST: Court Approves Sale of Property to Gillen for $10K
SEARS HOLDING: $175M Bankruptcy Deal With Former CEO Okayed
SELUNE LTD: Chapter 15 Case Summary
SENIOR CARE: Florida Court Sets Auction of Assets for November 16
SK MOHAWK: Fitch Affirms 'B' IDR & Alters Outlook to Stable
SNOWBIRD II: Taps Law Offices of Kevin S. Neiman as Counsel
STAYMOBILE VENTURE: Online Auction for Components Underway
STRATEGIC EQUITY VENTURES: Files Bare-Bones Petition
SUNGARD AS: Court Approves $52.5 Million Sale of Assets to 365 SG
T M GRACE BUILDERS: $1.4MM Sale of Franktown Asset to Schwabs OK'd
TALEN ENERGY: Gets Court Okay to Raise $1.55 Bil. From Creditors
TALEN ENERGY: K&E, Zack Clement Update on Noteholders Group
TANORE FINANCE: Chapter 15 Case Summary
THE JOHN V. GALLY FAMILY: Trust Files for Chapter 11 Bankruptcy
TIGER ACQUISITION: Moody's Cuts CFR to B3 & First Lien Debt to B2
TOSCANA LUNA: Rental Income to Fund Plan Payments
TOSON FOOD: Wins Cash Collateral Access Thru Sept 20
TRX HOLDCO: Founder Randy Hetrick Regains Control of Business
UNION COLONY: Moody's Lowers Rating on 2018 Revenue Bonds to Ba2
VASCO INVESTMENT: Chapter 15 Case Summary
VENUE CHURCH: Seeks Cash Collateral Access
VERDANT HOLDINGS: Seeks to Hire Valbridge Property as Appraiser
YACHATS RURAL: Moody's Cuts GOULT Rating to Ba1, Outlook Negative
YORKTOWN ELECTRIC: $1.8K Sale of 2002 & 2003 Ford Vans Approved
YU HUA LONG: Unsecureds to Get 35 to 90 Cents on Dollar in Plan
ZENTUARY GROUP: Wins Cash Collateral Access
[^] Large Companies with Insolvent Balance Sheet
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3I AVI LLC: Missouri Court Grants in Part Proposed Sale of Assets
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Judge Kathy A. Surratt-States of the U.S. Bankruptcy Court for the
Eastern District of Missouri granted in part and denied in part the
sale of assets proposed by 3i AVI, LLC, doing business as Black
Widow Imaging.
Jason Hauk filed a Limited Objection to Motion to Sell Assets and
Emergency Motion to Authorize and Direct Contact of
Customer/Potentially Interested Bidder Regarding Participation in
Auction. A hearing on the Motion to Sell was held telephonically
on Aug. 29, 2022, at 10:00 a.m.
The Motion to Sell is granted in part in that Brent Baxter, the
Chief Sales Officer ("CSO"), is authorized to contact "customer 2"
and "customer 3" referenced in the Motion (which customers the
Movant has identified to the CSO).
The Motion to Sell is granted in part as amended by the CSO's oral
request, made at the hearing on the Motion to Sell, for authority
to re-contact parties that submitted executed Confidentiality
Agreements, in that the CSO is authorized to make such contact with
such parties.
The Motion to Sell is denied in part in that Hauk is not to
participate in the communications to parties/potential bidders
authorized by the Order.
The Objection is denies as moot.
No later than two business days after the date of the Order, the
Movant's attorneys will serve a copy of the Order and will file a
certificate of service no later than 24 hours after service.
About 3i AVI LLC
3i AVC LLC -- https://blackwidowimaging.com/ -- doing business as
Black Widow Imaging, is an Internet software and services provider
in Wentzville, Mo.
3i AVI, LLC filed for Chapter 11 protection (Bankr. E.D. Mo. Case
No. 22-41053) on April 12, 2022. In the petition signed by Jason
Hauk, managing member, the Debtor disclosed $61,420,000 in total
assets and $159,339 in total liabilities.
Judge Kathy A. Surratt-States oversees the case.
David M. Dare, Esq., at Herren, Dare & Streett and Stinson, LLP
serve as the Debtor's bankruptcy counsel and special patent
counsel, respectively.
8233 ROXBURY: Seeks to Hire Havkin & Shrago as Bankruptcy Counsel
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8233 Roxbury, LLC seeks approval from the U.S. Bankruptcy Court for
the Central District of California to hire Havkin & Shrago,
Attorneys at Law, as its legal counsel.
The firm's services include:
(a) representing the Debtor at its initial interview;
(b) representing the Debtor at the meeting of creditors
pursuant to Bankruptcy Code Sec. 341(a) or any continuance
thereof;
(c) representing the Debtor at all hearings before the
bankruptcy court;
(d) preparing legal papers;
(e) advising the Debtor regarding matters of bankruptcy law,
including its rights and remedies with respect to its assets and
the claims of its creditors;
(f) representing the Debtor in contested matters;
(g) assisting the Debtor in the preparation of a plan of
reorganization and the negotiation and implementation of the plan;
(h) analyzing claims that have been filed in the Debtor's
bankruptcy case;
(i) negotiating with the Debtor's creditors regarding the
amount and payment of their claims;
(j) objecting to claims as may be appropriate; and
(k) all other necessary legal services.
Havkin & Shrago received a post-petition retainer in the sum of
$7,300 from the Debtor's principal on Aug. 22 and will receive
additional $7,700 within 20 days.
The firm's hourly rates are as follows:
Stella Havkin $535
David Jacob $395
Paralegal $175
As disclosed in court filings, Havkin & Shrago is a disinterested
person as defined by Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Stella Havkin, Esq.
Havkin & Shrago, Attorneys at Law
5950 Canoga Avenue, #400
Woodland Hills, CA 91367
Tel: 818-999-1568
Fax: 818-234-1424
Email stella@havkinandshrago.com
About 8233 Roxbury
Los Angeles-based 8233 Roxbury filed a petition for relief under
Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. C.D.
Calif. Case No. 22-14444), listing $1 million to $10 million in
both assets and liabilities. Gregory Kent Jones has been appointed
as Subchapter V trustee.
Judge Julia W. Brand oversees the case.
Stella Havkin, Esq., at Havkin & Shrago, Attorneys at Law is the
Debtor's counsel.
A.B.C. OF NORTH PALM: Sept. 21 Auction of North Palm Beach Property
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Judge Mindy A. Mora of the U.S. Bankruptcy Court for the Southern
District of Florida authorized A.B.C. of North Palm Beach, Inc.'s
sale of the commercial property located at 763 and 775 Northlake
Blvd., North Palm Beach, Florida 33408, to William B. Reichel or
his designated affiliate for $2.1 million, in accordance with the
terms of their Purchase & Sale Agreement, subject to overbid.
The Debtor will generate a blank purchase agreement to be
circulated to proposed buyers and which contains the same
provisions as the PSA and form of agreement approved by the Court.
The Debtor is authorized to conduct an auction, in accordance with
the following terms and conditions, to consider competing bids for
the Property:
a. Bid Deadline: No later than 12:00 p.m. (ET) on the second
business day before the scheduled auction sale
b. Initial Bid: $2.2 million, which amount is equal to the
purchase price ($2.1 million, plus $100,000)
c. Deposit: $200,000
d. Auction: Sept. 21, 2022 at 11:00 a.m. at the office of
Lorium PLLC, 197 S. Federal Hwy #200, Boca Raton, FL 33432
e. Bid Increments: $25,000
f. Sale Hearing: Sept. 28, 2022, at 1:30 p.m. using the
services of Zoom Video Communications, Inc.
g. Sale Objection Deadline: No later than 4:00 p.m. (EST), two
business days before the Sale Hearing
h. Closing: The successful bidder will be required to close
within 15 calendar days after the order approving the sale to the
successful bidder becomes a final, non-appealable order, unless
extended by the parties' agreement.
In the event the Stalking Horse Bidding is not the successful
bidder, the break-up fee of 2.5% the final bid price to the
Stalking Horse Bidder will be paid at closing from the cash
consideration of the purchase price of any alternative transaction
is approved and the Initial Deposit and Second Deposit will be
returned to the Stalking Horse Bidder.
Reichel is deemed a Qualified Bidder. In the event that M&M Private
Lending Group, LLC seeks to become a Qualified Bidder with a bid
that incudes or reserves a right to credit bid under 11 U.S.C.
Section 363(k), the cash component of its proposed bid must at
least be sufficient to cover payment in full of any higher priority
liens against the Property, closing costs, brokerage fees, U.S.
Trustee fees and reasonable administrative expenses to be
determined.
The Debtor will serve a copy of the Order and notice of the sale
upon all the Sale Notice Parties.
The sale order approving the purchaser of the property and setting
closing will be provided the tenants of the property, and the
Debtor will provide a notice of termination of the parties'
respective tenancy pursuant to Florida Law with such notice
providing that the tenancy is terminated on closing and the tenants
will be required to vacate and turnover the property on or before
15 days after closing unless the terms of further tenancy are
agreed by the buyer.
About A.B.C. of North Palm Beach
A.B.C. of North Palm Beach, Inc., owns the real property located
at
763 and 775 Northlake Blvd., North Palm Beach, FL 33408.
To stop foreclosure, A.B.C. of North Palm Beach filed for Chapter
11 protection (Bankr. S.D. Fla. Case No. 22-12797) on April 10,
2022.  In the petition filed by My Tran, president, A.B.C.
listed
up to $10 million in assets and up to $50,000 in liabilities. Â
Judge Mindy A. Mora oversees the case.
Mark S. Roher, Esq., at the Law Office of Mark S. Roher, P.A. is
the Debtor's legal counsel.
AABAR INVESTMENTS: Chapter 15 Case Summary
------------------------------------------
Chapter 15 Debtor: Aabar Investments PJS
Offshore Incorporations Centre
P.O. Box 957
Road Town, Tortola, VG1110
British Virgin Islands
Business Description: Aabar Investments PJS, a United Arab
Emirates company, owns 100% of the equity
interest in Debtor Aabar-BVI, a BVI company.
Foreign Proceeding: Eastern Caribbean Supreme Court, High Court
of the BVI, Commercial Division
Chapter 15
Petition Date: August 31, 2022
Court: United States Bankruptcy Court
Southern District of Florida
Case No.: 22-16802
Foreign
Representatives: Angela Barkhouse
Helen Janes
Carl Jackson
142 Seafarers Way
George Town, Grand Cayman KY1-9006
Cayman Islands
Foreign
Representatives'
Counsel: Gregory S. Grossman, Esq.
Juan J. Mendoza, Esq.
Jennifer Mosquera, Esq.
SEQUOR LAW, P.A.
1111 Brickell Avenue, Suite 1250
Miami, FL 33131
Tel: (305) 372-8282
Fax: (305) 372-8202
Email: ggrossman@sequorlaw.com
jmendoza@sequorlaw.com
jmosquera@sequorlaw.com
Estimated Assets: Unknown
Estimated Liabilities: Unknown
A full-text copy of the Chapter 15 petition is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/EH4UTBY/Aabar_Investments_PJS__flsbke-22-16802__0001.0.pdf?mcid=tGE4TAMA
ADAZPAY LLC: Ongoing Business Operations to Fund Plan
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Adazpay, LLC DBA Hideout Saloon filed with the U.S. Bankruptcy
Court for the District of Arizona a Subchapter V Plan of
Reorganization dated August 30, 2022.
The Hideout Saloon has been in existence in Tucson, Arizona since
1962, although it was formerly known as the Triangle Bar. The bar
has been at its current location at 1110 S. Sherwood Village in
Tucson, Arizona 85710 (the "Property") since the summer of 1979.
On or about June 24, 2022, the Debtor officially moved out of the
Property following a resolution with its prior landlord, Big Belly
Properties, LLC ("Landlord"), and the new buyer, Science Technology
Engineering and Math Arizona dba Da Vinci Tree Academy ("Buyer"),
which was approved by this Court on June 30, 2022.
The Debtor will be responsible for resolving the claims of
creditors through traditional claims allowance as permitted by the
Bankruptcy Code and Bankruptcy Rules.
Priority creditors will be paid in full the allowed amount of their
claims with interest, over time. Secured creditors will be paid in
full within three years of the Effective Date. Unsecured creditors
will be paid a pro-rated portion of their allowed claim through the
projected net operating income of the Debtor.
Class 2 consists of Priority Tax Claims. This class consists of any
unsecured priority tax claims of the State of Arizona, the Internal
Revenue Service, and any municipality authorized to assess and
collect taxes. Different taxing agencies have asserted proofs of
claim but for estimated amounts only. Debtor anticipates resolving
these claims through the filing of various returns and the payment
of taxes in the ordinary course. If, after returns are filed, and
any such claims exist and allowed, they will be paid either in the
ordinary course or over 3 years. The Class 2 Claims will be paid in
full within 3 years of the Effective Date or at the appropriate
time once returns are prepared and filed.
Class 3 consists of Secured Claims. This class consists of the
secured claim of the Arizona Department of Revenue. Dafni has filed
a proof of claim in the amount of $203,322.67 as of the Petition
Date. Debtor will file an objection to this secured claim. Debtor
will pay the amount the Court determines is proper, plus 6%
post-petition interest, over 3 years. Class 3 claims will be paid
in full within three years of the Effective Date.
Class 4 consists of Unsecured Claims. This class consists of the
allowed, outstanding unsecured claims as of the Effective Date and
any timely filed rejection damages. The Bankruptcy Schedules
reflect unsecured claims against Debtor in the amount of
$91,734.07.
Because Allowed Claims are unsecured, they will not accrue interest
post-petition or be entitled to attorney's fees or costs. Class 4
claims will be paid pro-rata over three years. This may not be a
full-payment plan pending the determination of the amounts of the
priority and secured tax claims. Class 4 claims are impaired and
may vote.
Class 5 consists of Equity Interests. This class consists of
Debtor's equity security holders. The equity holder of Debtor is
Paul Bear. Current Equity will remain as Equity, they will not make
any distributions until after the Plan is fully consummated.
The Plan will be funded entirely from Debtor's ongoing business
operations. The Debtor's current gross income averages $30,000 per
month and Debtor's monthly expenses average $25,000 per month.
However, Debtor's sales will soon increase once it reopens in a new
space. Based on present numbers, Debtor can fund a feasible plan.
Based on Debtor's current business, Debtor believes its Plan is
viable.
A full-text copy of the Plan of Reorganization dated August 30,
2022, is available at https://bit.ly/3Bb4Tzc from PacerMonitor.com
at no charge.
Attorneys for Debtor:
DECONCINI MCDONALD YETWIN & LACY, P.C
2525 East Broadway Blvd., Suite 200
Tucson, AZ 85716-5300
(520)322-5000 (tel.)
(521)322-5585 (fax)
Jody A. Corrales, Esq.
jcorrales@dmyl.com
About Adazpay LLC
Adazpay, LLC, doing business as Hideout Saloon has owned and
operated the bar and restaurant since 2011.
Adazpay, LLC, filed a petition for relief under Subchapter V of the
Bankruptcy Code (Bankr. D. Ariz. Case No. 22-03535) on June 1,
2022.
Jody A. Corrales, Esq., of DECONCINI MCDONALD YETWIN & LACY, P.C.,
is the Debtor's counsel.
ADRIAN WYATT: Wins Cash Collateral Thru Sept 22
-----------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of North
Carolina, Raleigh Division, authorized Adrian Wyatt Adams Drug,
Inc. to use cash collateral on an interim basis in accordance with
the budget, with a 10% variance. The budget covers the period from
August 24 to September 22, 2022.
The Court held that Live Oak Bank's liens on the collateral
securing the debt owed to Live Oak will extend to the Debtor's
post-petition assets; provided, that nothing in the Order will be
deemed to grant the Bank a postpetition lien on the types of
assets, if any, in which Live Oak did not possess a valid,
perfected, enforceable, and otherwise non-avoidable pre-petition
liens.
As adequate protection for Live Oak Bank, the Debtor was required
to pay $3,234.54 to the Bank by September 5, 2022. This amount will
be applied as set forth in the Note in the Bank's favor.
The Court's Order will remain in full force and effect until the
earlier of (a) September 22; (b) entry of an order by the Court
terminating the Order for cause, including, but not limited to,
breach of its terms and conditions; or (c) another order concerning
cash collateral is entered.
A final hearing on the matter is set for September 22 at 10:30
a.m.
About Adrian Wyatt Adams Drug, Inc.
Adrian Wyatt Adams Drug, Inc. operates two independently-owned drug
stores in Wake County, North Carolina. The Debtor sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.C. Case
No. 22-01834) on August 18, 2022. In the petition signed by Adrian
Wyatt Adams, president, the Debtor disclosed $392,125 in total
assets and $1,919,109 in total liabilities.
Judge David M. Warren oversees the case.
George Mason Oliver, Esq., at the Law Offices of Oliver and Cheek,
PLLC is the Debtor's counsel.
AEARO TECHNOLOGIES: 3M Appeals Court's Refusal to Stop Suits
------------------------------------------------------------
James Nani of Bloomberg Law reports that 3M Co. filed a notice to
appeal a bankruptcy court’s recent ruling denying the
manufacturer's bid to block more than 230,000 lawsuits alleging
that its earplugs harmed US soldiers.
The Monday notice comes after US Bankruptcy Judge Jeffrey J. Graham
Friday refused to halt the lawsuits, which accuse 3M and its
bankrupt subsidiary, Aearo Technologies, of selling faulty combat
earplugs.
Bankruptcy courts sometimes grant requests to pause lawsuits
against non-bankrupt companies with connections to a Chapter 11
debtor, as 3M had done in Aearo's case. Judge Graham's decision
Friday to allow the suits against 3M to continue put into question
the company's decision to try to resolve the mass tort litigation
by putting Aearo in bankruptcy.
In July, 3M placed its Aearo subsidiary into bankruptcy in the US
Bankruptcy Court for the Southern District of Indiana. The filing
came after what the company said is three years and $350 million in
legal fees spent in multidistrict litigation over allegedly faulty
earplugs used by the US military. More than 230,000 plaintiffs,
most of whom were service members, have claimed the earplugs caused
hearing damage.
Aearo has said it wants to continue to use the Chapter 11 process
to reach a settlement that would end all of the lawsuits and
related tort claims against the unit and 3M.
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.
3M has said it would fund a $1 billion settlement trust to
compensate people suing over the earplugs—a majority of the tort
claims. The strategy is similar to those used by other companies
facing extensive personal injury liabilities, including Johnson &
Johnson and Purdue Pharma LP.
The case is Aearo Technologies LLC, Bankr. S.D. Ind., No. 22-02890,
notice 8/29/22.
AFFINITY EQUITY: Chapter 15 Case Summary
----------------------------------------
Chapter 15 Debtor: Affinity Equity International
Partners Limited
Offshore Incorporations Centre
P.O. Box 957
Road Town, Tortola VG1110
British Virgin Islands
Chapter 15 Petition Date: August 31, 2022
Court: United States Bankruptcy Court
Southern District of Florida
Case No.: 22-16815
Foreign Proceeding: Eastern Caribbean Supreme Court,
High Court of the BVI,
Commercial Division
Foreign Representatives: Angela Barkhouse
Helen Janes
Carl Jackson
142 Seafarers Way
George Town, Grand Cayman KY1-9006
Cayman Islands
Foreign Representatives'
Counsel: Gregory S. Grossman, Esq.
Juan J. Mendoza, Esq.
Jennifer Mosquera, Esq.
SEQUOR LAW, P.A.
1111 Brickell Avenue, Suite 1250
Miami, FL 33131
Tel: (305) 372-8282
Email: ggrossman@sequorlaw.com
jmendoza@sequorlaw.com
jmosquera@sequorlaw.com
Estimated Assets: Unknown
Estimated Liabilities: Unknown
A full-text copy of the Chapter 15 petition is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/YRALKNQ/Affinity_Equity_International__flsbke-22-16815__0001.0.pdf?mcid=tGE4TAMA
BAKERSFIELD OWL: Taps LK Professional as Bankruptcy Counsel
-----------------------------------------------------------
Bakersfield Owl, Inc. seeks approval from the U.S. Bankruptcy Court
for the Central District of California to hire LK Professional Law
Group as its bankruptcy counsel.
The firm's services include:
a. advising the Debtor regarding the requirements of the
bankruptcy court, Bankruptcy Code, Bankruptcy Rules and the Office
of the United States Trustee;
b. advising the Debtor regarding the rights and remedies of
the bankruptcy estate and the rights, claims and interests of
creditors;
c. representing the Debtor in any proceeding or hearing in the
bankruptcy court involving its estate unless the Debtor is
represented in such proceeding or hearing by special counsel;
d. conducting examinations of witnesses, claimants or adverse
parties and representing the Debtor in any adversary proceedings;
e. assisting the Debtor in the preparation of reports and
court papers;
f. assisting the Debtor in seeking court approval to obtain
debtor-in-possession financing or use of cash collateral;
g. assisting the Debtor in any asset sale process;
h. assisting the Debtor in the negotiation, formulation,
preparation and confirmation of a plan of reorganization and
disclosure statement; and
i. performing other necessary legal services for the Debtor.
Jamie Kim, Esq., a partner at LK, will lead the firm in this
bankruptcy case. Her hourly rate is $350.
LK received a retainer in the amount of 7,500, exclusive of the
Debtor's Chapter 11 filing fees.
As disclosed in court filings, LK neither represents nor holds any
interest adverse to the Debtor and its estate.
The firm can be reached through:
Jamie Jiyoon Kim, Esq.
LK Professional Law Group
14730 Beach Blvd Ste 106
La Mirada, CA 90638-4248
Phone: 213-788-3588
Fax: 213-788-3380
Email: jamie@lklawg.com
About Bakersfield Owl
Bakersfield Owl, Inc., doing business as Hooters of Bakersfield,
sought protection for relief under Chapter 11 of the Bankruptcy
Code (Bankr. C.D. Calif. Case No. 22-14483) on Aug. 17, 2022,
listing up to $50,000 in assets and up to $1 million in
liabilities. Judge Sheri Bluebond oversees the case.
Ji Yoon Kim, Esq., at LK Professional Law Group represents the
Debtor as counsel.
BBC GROUP: Affiliate Taps Seth D. Ballstaedt as Legal Counsel
-------------------------------------------------------------
BBC Group CA, LLC, an affiliate of BBC Group NV, LLC, seeks
approval from the U.S. Bankruptcy Court for the District of Nevada
to employ the Law Office of Seth D. Ballstaedt to serve as legal
counsel in its Chapter 11 case.
The firm's services include:
a. instituting, prosecuting or defending any contested matters
arising out the bankruptcy proceeding in which the Debtor may be a
party;
b. assisting in the recovery and liquidation of estate assets,
and assisting in protecting and preserving those assets when
necessary;
c. assisting in determining the priorities and statuses of
claims and in filing objections when necessary;
d. assisting in the preparation of a disclosure statement and
Chapter 11 plan of reorganization; and
e. performing all other necessary legal services for the
Debtor.
The hourly rates charged by the firm for its services are as
follows:
Attorneys $300 per hour
Paralegals $150 per hour
To date, the firm received payment of $3,738 for its services to be
rendered in the Debtor's case. The Debtor accrued $2,000 in legal
fees and $1,738 in expenses arising out of the filing of the case.
Seth Ballstaedt, Esq., the firm's attorney who will be providing
the services, disclosed in a court filing that he is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached at:
Seth D. Ballstaedt, Esq.
Law Office of Seth D. Ballstaedt
8751 W. Charleston Blvd., Suite 220
Las Vegas, NV 89117
Tel: (702) 715-0000
Fax: (702) 666-8215
Email: help@bkvegas.com
About BBC Group NV
BBC Group NV, LLC -- https://www.eatbocboc.com/ -- is a Las
Vegas-based company that operates in the restaurant industry.
BBC Group NV and its affiliate, BBC Group CA, LLC, filed petitions
under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. D.
Nev. Lead Case No. 22-11538) on April 29, 2022. At the time of the
filing, BBC Group NV listed up to $500,000 in assets and up to $10
million in liabilities while BBC Group CA listed up to $50,000 in
assets and up to $10 million in liabilities. Brian Shapiro serves
as Subchapter V trustee.
Judge Mike K. Nakagawa oversees the cases.
Seth D. Ballstaedt, Esq., at the Law Office of Seth D. Ballstaedt
is the Debtors' legal counsel.
BEP ULTERRA: Moody's Upgrades CFR & Senior Secured Term Loan to B2
------------------------------------------------------------------
Moody's Investors Service upgraded BEP Ulterra Holdings, Inc.'s
(Ulterra) corporate family rating to B2 from B3, probability of
default rating to B2-PD from B3-PD, and senior secured term loan
rating to B2 from B3. The rating outlook remains stable.
"The upgrade reflects an accelerated pace of recovery in 2022 and
Moody's expectation that Ulterra will deliver strong earnings,
lower leverage and strong free cash flow, with positive momentum
going into 2023", said Elena Nadtotchi, Senior Vice President at
Moody's.
Upgrades:
Issuer: BEP Ulterra Holdings, Inc.
Corporate Family Rating, Upgraded to B2 from B3
Probability of Default Rating, Upgraded to B2-PD from B3-PD
Senior Secured Bank Credit Facility, Upgraded to B2 (LGD4) from B3
(LGD4)
Outlook Actions:
Issuer: BEP Ulterra Holdings, Inc.
Outlook, Remains Stable
RATINGS RATIONALE
Ulterra's B2 CFR benefits from improving conditions in the oilfield
service industry and is gaining market share in all of its key
geographical markets. Ulterra is also able to raise prices that
broadly compensate for rising labor costs and should see some
improvement in the gross margins. As demand for Ulterra's products
continues to improve, Moody's expects the company to deliver strong
growth in revenue and EBITDA, and generate strong free cash flow.
Moody's expects Ulterra's leverage to decline, with Debt/EBITDA
falling below 2.5x in 2022, compared to 6.1x in 2021, and for
EBITDA/interest to continue to strengthen as well.
Ulterra's CFR is constrained by the company's single product line
focus and small scale, as measured by assets, revenue and EBITDA,
despite its strong market position in its core niche market segment
of Polycrystalline Diamond Compact (PDC) drill-bits. Ulterra's cash
flows are cyclical and highly correlated to the volatility of
upstream drilling.
Moody's expects Ulterra to maintain adequate liquidity, supported
by its cash balance of $27 million at the end of Q2 2022 and strong
free cash flow generation, as well as full availability under its
$50 million super priority revolving credit facility, maturing in
November 2023. The revolving credit facility has a number of
financial covenants, including maintaining a maximum net super
priority debt/EBITDA ratio of 1.0x at all times and a springing net
total debt/EBITDA covenant of 4.5x tested when utilization exceeds
60%. Ulterra should remain well in compliance with its covenants
through 2023. While Moody's expects Ulterra to not use its revolver
in 2022 and 2023, it is working to extend the maturity of its
facility in the ordinary course of business.
The senior secured term loan maturing in 2025 has a first-lien
pledge of all the assets of the issuer and guarantors, including
the operating subsidiaries, and is rated B2 (at the level of the
CFR). The $50 million super priority revolving credit facility is
paid on a first out basis in the event of default. The term loan is
rated the same as the CFR because of the small size of the revolver
compared to the size of the term loan. The term loan facility and
the revolving credit facility have liens on the assets of the
company and its downstream guarantors and the subsidiaries.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
An upgrade of the B2 ratings may be achieved if Ulterra maintains
conservative financial metrics and good liquidity, generates
consistent positive free cash flow, reduces cash flow volatility,
and there is a broadly supportive trend in drilling activity.
Ratings could be downgraded if Ulterra's liquidity position weakens
or if its leverage, measured by debt/EBITDA, rises above 4.5x.
Ulterra Holdings, Inc. is a manufacturer of Polycrystalline Diamond
Compact (PDC) drill bits and stick-slip reduction tools
headquartered in Fort Worth, Texas. Ulterra is owned by the private
equity firms Blackstone Group and American Securities.
The principal methodology used in these ratings was Oilfield
Services published in August 2021.
BLACKSTONE ASIA: Chapter 15 Case Summary
----------------------------------------
Chapter 15 Debtor: Blackstone Asia Real Estate
Partners Limited
Offshore Incorporations Centre
P.O. Box 957
Road Town, Tortola VG1110
British Virgin Islands
Foreign Proceeding: Eastern Caribbean Supreme Court,
High Court of the BVI, Commercial
Division
Chapter 15 Petition Date: August 31, 2022
Court: United States Bankruptcy Court
Southern District of Florida
Case No.: 22-16805
Foreign Representatives: Angela Barkhouse
Helen Janes
Carl Jackson
142 Seafarers Way
George Town, Grand Cayman KY1-9006
Cayman Islands
Foreign
Representatives'
Counsel: Gregory S. Grossman, Esq.
Juan J. Mendoza, Esq.
Jennifer Mosquera, Esq.
SEQUOR LAW, P.A.
1111 Brickell Avenue, Suite 1250
Miami, FL 33131
Tel: (305) 372-8282
Email: ggrossman@sequorlaw.com
jmendoza@sequorlaw.com
jmosquera@sequorlaw.com
Estimated Assets: Unknown
Estimated Liabilities: Unknown
A full-text copy of the Chapter 15 petition is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/YCVODHA/Blackstone_Asia_Real_Estate_Partners__flsbke-22-16805__0001.0.pdf?mcid=tGE4TAMA
BRAND44: Seeks Cash Collateral Access Thru Sept 26
--------------------------------------------------
Brand 44, LLC asks the U.S. Bankruptcy Court for the District of
Colorado for authority to use cash collateral in accordance with
the budgets and provide adequate protection for the period from
September 1 through September 26, 2022.
Starting in 2021 and continuing in 2022, the Debtor experienced
significant financial difficulties, including supply-chain
disruptions and increased costs that are largely attributed to the
effects of the COVID-19 pandemic. Significantly, for example,
standard container shipping fees skyrocketed, costing nearly $2
million of additional unforeseen expenses. The Debtor also
experienced shipping delays and incurred thousands of dollars of
previously unseen storage costs. Further, during this time the
Debtor suffered from delayed or late orders from its China-based
factories and shipping companies, sometimes in the range of 60-150
days. These delays resulted in cancelled orders and missing key
Spring, Summer and holiday demand. The Debtor estimates the
supply-chain issues alone resulted in millions of additional costs
and millions in sales losses.
In addition, the Debtor experienced additional financial setbacks
during this period, including cost overruns from the replacement of
its Enterprise Resource Planning system in January 2021. The cost
to replace the Debtor's ERP system, including the implementation
and consulting fees, were significantly higher than the budgeted
amount. The change further hindered the Debtor's ability to analyze
relevant information during what turned out to be a difficult
financial period. Similarly, during this period Amazon implemented
new product safety compliance testing which resulted in reduced
online sales. Further, during this period, one important retailer,
Canadian Tire, forced the Debtor to recall certain products and
replace a label. The recall resulted in lost sales and the
estimated cost was over $250,000.
In addition, the financial setbacks corresponded with the Debtor's
inability to obtain additional operating capital. Prior to the
Petition Date, the Debtor maintained an operating line of credit
through Alpine Bank. Due to the above-described factors, the Debtor
was unable to pay down the debt owed to Alpine. The loan was
originally set to mature on March 30, 2022. At the Debtor's
request, Alpine agreed to a final extension of the maturity of the
loan through June 30, 2022. However, the Debtor failed to pay its
obligations to Alpine under the loan and the loan matured on June
30, 2022. The Debtor filed the bankruptcy case after Alpine
informed it that, after two months since the loan matured and
without receiving any payment thereon, it intended to exercise its
contractual and legal remedies to collect its matured debt.
Leading up to the Petition Date, the Debtor has reduced its
operating expenses by more than $1 million by, among other things,
reducing the number of its employees.
Prior to the Petition Date, Debtor and Alpine entered into these
agreements:
a. Business Loan Agreement dated April 30, 2019, whereby
Alpine agreed to enter into a $3,000,000 line of credit with the
Debtor in accordance with the terms thereof.
b. Promissory Note dated April 30, 2019, made, executed and
delivered by the Debtor to Alpine in the principal amount of
$3,000.000 in accordance with the terms thereof. The Note has been
amended from time to time with the most recent Change in Terms
Agreement being executed by the Debtor and Alpine March 30, 2022,
whereby, inter alia, the maturity date of the Note was extended to
June 30, 2022.
c. Commercial Security Agreement dated April 30, 2019, whereby
the Debtor granted a security interest in substantially all of its
assets including, but not limited to, accounts, inventory,
equipment and general intangibles, to Alpine to secure the Debtor's
performance under the BLA and obligations due under the Note.
Alpine perfected its security interest in the Debtor's assets when
it filed its UCC-1 with the Colorado Secretary of State on May 6,
2019, at Filing No. 20192038628. Alpine holds a perfected and
senior lien against substantially all of the Debtor's assets as
identified in the Security Agreement. As of the Petition Date, the
Debtor is indebted to Alpine, pursuant to the Loan Documents, in an
amount not less than $3,381,988.
Prepetition, the Debtor and Amazon Capital Services, together with
its subsidiaries and affiliates, entered into a Loan Agreement for
a loan in the principal amount of $56,000. On March 12, 2020,
Amazon filed a financing statement with the Colorado Secretary of
State. Amazon asserts a security interest in the Debtor's assets,
including specifically, Debtor's business account administered by
Amazon. The Debtor's books and records reflect the balance owed to
Amazon on the Petition Date is approximately $37,998.
On February 26, 2021, the Debtor purchased two forklifts, Hyster
Model No. N35ZRS and Yale Model No. NR040DANS24TE091 from Discount
Forklift and financed the purchase. The Debtor's books and records
reflect the balance owed to First Citizens Bank & Trust Co. on the
Petition Date is approximately $22,389. First Citizens asserts as
security interest in the Forklifts along with other collateral
pursuant to a financing statement filed with the Colorado Secretary
of State on March 10, 2021.
On February 10, 2022, the Debtor and the U.S. Small Business
Administration entered into an agreement for an Economic Injury
Disaster Loan in the principal amount of $200,000. The SBA asserts
a security interest in substantially all of the Debtor's assets
pursuant to a financing statement filed on February 2, 2022.
On May 20, 2022, the Debtor and Fora Financial Services, LLC d/b/a
US Business Funding entered into an agreement to factor the
Debtor's receivables. The Debtor's book and records reflect that
the balance owed to UBF as of the Petition Date is approximately
$176,401. UBF asserts a security interest in the Debtor's accounts,
chattel paper, general intangibles and instruments pursuant to a
financing statement filed with the Colorado Secretary of State on
May 23, 2022.
On the Petition Date, the Debtor held accounts receivable in the
approximate amount of $1,000,000, cash in the approximate amount of
$187,000 and inventory (valued at cost) in the amount of
$1,873,260. The estimated combined total value is $3,060,260.
During the first 45 days of the bankruptcy case, Debtor intends to
pursue parallel paths that will allow Debtor to either sell its
substantially all of its assets under 11 U.S.C. section 363 or
obtain new investment capital. In the event that Debtor is
unsuccessful in its efforts to sell the business or attract new
investment capital, Debtor intends to pursue an orderly liquidation
of its assets.
The Debtor has an immediate and emergency need to use cash
collateral to fund its ongoing business operations consistent with
both the Sales Budget and the Liquidation Budget from the Petition
Date through the anticipated Bid Deadline. The Sale Budget and the
Liquidation Budget are identical during this period. The budgets
differ after the Bid Deadline.
In order to provide adequate protection for the Debtor's use of
cash collateral to the Cash Collateral Creditors, the Debtor
proposes the following summary relief:
a. For all Cash Collateral Creditors, the Debtor will provide
postpetition replacement liens on all postpetition accounts,
receivables, contracts and income derived from the operation of the
business and assets, to the extent that the use of cash collateral
results in a decrease in value of such perfected interests in the
collateral pursuant to 11 U.S.C. section 361(2) to the same extent
and in the same priority as existed prior to the Petition Date.
b. For Alpine, the Debtor will:
i. Make monthly adequate protection payments in the
amount of $75,000 pursuant to 11 U.S.C. section
361(1);
ii. Grant a superpriority administrative expense claim
pursuant to 11 U.S.C. section 507(b) to the extent
of the diminution in value of the cash collateral
during the pendency of the case and except as to
the Carve Out;
iii. Report all revenue, expenditures and collections on
weekly basis;
iv. Agree not to incur or allow any priming liens on
any of Alpine's pre-petition collateral;
v. Continue to maintain its bank accounts at Alpine
Bank, provided, however, that such accounts are
authorized and approved by the U.S. Trustee;
vi. Waive any claim for a surcharge under 11 U.S.C.
section 506(c);
vii. Consent and agree to waive application of the
"equities of the case" doctrine under section
552(b)(1);
viii. Stipulate to the allowance of Alpine's
pre-petition indebtedness, the granting and
perfection of Alpine's prepetition liens, and a
release of any claims held by the Debtor against
Alpine;
ix. Agree to the achievement of certain milestones
regarding the sale and/or liquidation of Alpine's
collateral; and
x. Use cash collateral solely in accordance with the
terms of the budgets attached to the Motion and
with the Interim and Final Orders.
A copy of the motion is available at https://bit.ly/3CRiT27 from
PacerMonitor.com.
About Brand 44, LLC
Brand 44, LLC designs, manufactures and sells outdoor activities
products through a variety of distribution channels, including
through online sales, sporting good retailers, specialty catalogs
and large retail stores. Debtor sells its products in the United
States and internationally on all five continents.
It produces and sells its products through five product brand
names: Slackers, Playzone Fit, 4Fun, American Ninja Warrior, and
Plum Play.
The Debtor sells to its customers online through a number of
avenues, including Amazon.com, Wayfair.com, Dicks.com and directly
through the Debtor's website: www.b4adventures.com. The Debtor's
customers also include large retail stores, including Target.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Colo. Case No. 22-13369-EEB) on
September 1, 2022. In the petition signed by Edward T. O'Brien III,
the Debtor disclosed up to $10 million in both assets and
liabilities.
J. Brian Fletcher, Esq., at Onsager Fletcher Johnson LLC is the
Debtor's counsel.
BRAZEN SKY: Chapter 15 Case Summary
-----------------------------------
Chapter 15 Debtor: Brazen Sky Limited
Floor 4, Banco Popular Building
Road Town, Tortota VG11110
British Virgin Islands
Chapter 15 Petition Date: August 31, 2022
Court: United States Bankruptcy Court
Southern District of Florida
Case No.: 22-16795
Foreign Proceeding: Voluntary Liquidation pending in
British Virgin Islands
Foreign Representatives: Angela Barkhouse
Helen Janes
Carl Jackson
142 Seafarer Way
George Town, Grand Cayman KY1-9006
Cayman Islands
Foreign Representatives'
Counsel Counsel: Gregory S. Grossman, Esq.
Juan J. Mendoza, Esq.
Jennifer Mosquera, Esq.
SEQUOR LAW, P.A.
1111 Brickell Avenue, Suite 1250
Miami, FL 33131
Tel: (305) 372-8282
Email: ggrossman@sequorlaw.com
jmendoza@sequorlaw.com
jmosquera@sequorlaw.com
Estimated Assets: Unknown
Estimated Liabilities: Unknown
A full-text copy of the Chapter 15 petition is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/4GSLCEY/Brazen_Sky_Limited__flsbke-22-16795__0001.0.pdf?mcid=tGE4TAMA
BRAZOS ELECTRIC: Fitch Withdraws 'D' Issuer Default Rating
----------------------------------------------------------
Fitch Ratings has withdrawn the following Issuer Default Rating
(IDR):
-- Brazos Electric Power Cooperative, Inc. (TX). Previous
Rating: 'D'.
Following the withdrawal of the rating, Fitch will no longer be
providing the associated ESG Relevance Scores for the issuer.
BRIDGE GLOBAL: Chapter 15 Case Summary
--------------------------------------
Chapter 15 Debtor: Bridge Global Absolute Return Funds SPC
Floor 4, Willow House, Cricket Square
Grand Cayman KY1-1112
Cayman Islands
Foreign Proceeding: Grand Court of the Cayman Islands,
Financial Services Division
Chapter 15 Petition Date: August 31, 2022
Court: United States Bankruptcy Court
Southern District of Florida
Case No.: 22-16816
Foreign Representatives: Angela Barkhouse
George Kimberley Leck
142 Seafarers Way
George Town, Grand Cayman KY1-9006
Cayman Islands
Foreign
Representatives'
Counsel: Gregory S. Grossman, Esq.
Juan J. Mendoza, Esq.
Jennifer Mosquera, Esq.
SEQUOR LAW, P.A.
1111 Brickell Avenue, Suite 1250
Miami, FL 33131
Tel: (305) 372-8282
Email: ggrossman@sequorlaw.com
jmendoza@sequorlaw.com
jmosquera@sequorlaw.com
Estimated Assets: Unknown
Estimated Liabilities: Unknown
A full-text copy of the Chapter 15 petition is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/AR4YZJQ/Bridge_Global_Absolute_Return__flsbke-22-16816__0001.0.pdf?mcid=tGE4TAMA
BULLSTRAP LLC: Wins Cash Collateral Access Thru Sept 14
-------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Florida,
West Palm Beach Division, authorized Bullstrap, LLC to use cash
collateral on an interim basis in accordance with the budget
through the date of the final hearing set for September 14, 2022 at
1:30 p.m.
The Debtor requires the use of cash collateral to meet its
operating expense obligations.
As of the Petition Date, the Debtor's primary indebtedness is a
loan from the Small Business Administration relating to an Economic
Injury Disaster Loan. As of August 26, 2022, the outstanding
principal balance due under the Loan was $1,199,400. The Loan is
evidenced by an original note dated May 21, 2020 and security
agreement, a 1st modification of the note dated July 16, 2021, and
a 2nd Modified of Note and Amended Security Agreement encumbering
substantially all of the assets of the Debtor. The Note matured on
May 21, 2022.
Although the extent, validity and priority of the SBA's secured
position is not adjudicated by way of the Interim Order, in
addition to the existing rights and interests of the SBA and for
the purpose of providing adequate protection for the use of cash
collateral, the SBA is granted valid, automatically perfected and
enforceable security interests and liens equivalent to liens
granted under Sections 361 and 363 of the Bankruptcy Code and
Bankruptcy Code section 364(c) in and upon (i) the Collateral; (ii)
all property acquired by the Debtor after the Petition Date that is
of the same nature, kind, type, or character as the Collateral in
which the Lenders had an interest prior to the commencement of the
Case (but excluding claims or causes of action of the Debtor or the
estate available through the exercise of the powers granted
pursuant to Sections 542, 544, 547, 548, 549, 550, 551 and 553 of
the Code); and (iii) all cash and receivables that are proceeds,
products, offspring, or profits of such collateral.
The Replacement Liens granted: (i) will be in addition to all
security interests, liens and rights of set-off existing in favor
of the SBA; (ii) will be valid, perfected, enforceable and
effective as of the date of the entry of the Interim Order without
any further action by the Debtor or the SBA, and without the
necessity of the execution, filing or recordation of any financing
statements, security agreements, mortgages or other documents; and
(iii) will secure the payment of the indebtedness to the SBA, as
the case may be, in an amount equal to any diminution in the value
of the cash collateral or any other Collateral occurring from and
after the Petition Date.
In addition, the Debtor will pay the SBA $1,500 each month which
will be unallocated until such time as the extent, validity and
amount of the SBA's secured claim is conclusively established in
the case by agreement or by order of the Court. The first payment
will be due within 30 days of the Petition Date and each following
payment will be paid within 30 days after the deadline of the
prior month's payment.
The Debtor will maintain, with financially sound and reputable
insurance companies, insurance of the kind covering the Collateral,
and in accordance with and in compliance with the U.S. Trustee
Guidelines and naming the SBA loss payee as it may request and as
its interest may appear.
A copy of the order is available at https://bit.ly/3e8JXQ7 from
PacerMonitor.com.
About Bullstrap, LLC
Bullstrap, LLC is a retailer of leather goods, including backpacks,
cellular telephone cases, smart watch wristbands, and other
lifestyle products. The Debtor has a substantial online presence.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 22-16627-EPK on August
26, 2022. In the petition signed by Claudio Conte, managing member,
the Debtor disclosed up to $500,000 in assets and up to $10 million
in liabilities.
Judge Erik P. Kimball oversees the case.
Chad P. Pugatch, Esq., at Loriun Law is the Debtor's counsel.
BURNS ASSET: Seeks to Hire J.M. Cook as Bankruptcy Counsel
----------------------------------------------------------
Burns Asset Management, Inc. seeks approval from the U.S.
Bankruptcy Court for the Eastern District of North Carolina to
employ J.M. Cook, P.A. as its legal counsel.
The firm's services include:
(a) preparing a plan of reorganization and other legal papers
necessary in the Debtor's reorganization case;
(b) assisting the Debtor in evaluating the legal basis for,
and effect of, the various pleadings that will be filed by the
Debtor and other parties;
(c) performing all necessary legal services in connection with
the Debtor's reorganization, including court appearances, research,
opinions and consultations on reorganization options, direction and
strategy;
(d) assisting the Debtor in preparing its monthly operating
reports and evaluating and negotiating the Debtor's or any other
party's plan of reorganization;
(e) commencing and prosecuting all necessary and appropriate
actions or proceedings; and
(f) performing all other legal services for the Debtor.
The firm charges $300 per hour for attorney's services and $75 per
hour for paralegal services.
The retainer fee is $3,000.
J.M. Cook, Esq., 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:
J.M. Cook, Esq.
J.M. Cook, PA
5886 Faringdon Place, Suite 100
Raleigh, NC 27609
Telephone: (919) 675-2411
Facsimile: (919) 882-1719
Email: J.M.Cook@jmcookesq.com
About Burns Asset Management
Burns Asset Management, which owns certain properties, first filed
a voluntary petition for relief under Chapter 11 of the Bankruptcy
Code (Bankr. E.D.N.C. Case No. 20-03888) on Dec. 14, 2020. The
court entered an order confirming its Chapter 11 plan in September
2021. The Debtor subsequently missed monthly payments to secured
creditor Deutsche Bank National Trust Company. In July 2022, the
Debtor consented to the U.S. Trustee's motion for dismissal of the
case.
Burns Asset Management sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D.N.C. Case No. 22-01721) on Aug. 5,
2022, listing as much as $1 million in both assets and liabilities.
James Burns, president of Burns Asset Management, signed the
petition.
Judge Joseph N. Callaway oversees the case.
J.M. Cook, Esq., at J.M. Cook, P.A. is the Debtor's legal counsel.
C & M ELECTRICAL: Wins Final Cash Collateral Access
---------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Georgia,
authorized C & M Electrical Contractors, Inc. and affiliates to use
cash collateral on a final basis in accordance with the budget.
The Debtors require the use of cash collateral to fund critical
operations of their businesses.
The Debtors assert Esco Rental, LLC is a borrower and C & M
Electrical Contractors, Inc. is a guarantor on certain loans with
South State Bank, which asserts security interests in certain of
the Debtors' real and personal property.
Esco Rental owns real property located at 4900 Highway 98 East,
Comer, GA 30629 and leases it to C&M Electrical. The rent received
by Esco Rental for lease of the Real Property is encumbered by
SouthState's lien on rents pursuant to the SouthState Loans and
related documents and therefore constitutes SouthState's cash
collateral.
As adequate protection, Esco Rental will make monthly payments to
SouthState in the amount $1,279 for Loan 9167 and in the amount of
$678 for Loan 3802 for a total amount of $1,957, commencing on the
15th day of each month.
Esco Rental will maintain insurance on the Real Property as set
forth in the underlying loan documents and to include SouthState as
an additional loss payee.
As adequate protection, SouthState and any other secured creditor,
to the extent they hold valid liens, security interests, or rights
of setoff as of the Petition Date under applicable law, are granted
valid and properly-perfected liens on all property acquired by the
Debtors after the Petition Date. The Adequate Protection Liens will
be deemed automatically valid and perfected upon entry of the
Order.
A copy of the order is available at https://bit.ly/3q7CzXY from
PacerMonitor.com.
About C & M Electrical Contractors, Inc.
C & M Electrical Contractors, Inc. provides a complete range of
electrical and mechanical solutions for the governmental,
industrial, commercial, & agricultural sectors.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ga. Case No. 22-20649) on July 14,
2022. In the petition signed by Richard Cody Esco, sole
shareholder, the Debtor disclosed up to $1 million in assets and up
to $10 million in liabilities.
Judge James R. Sacca oversees the case.
Benjamn Keck, Esq., at Keck Legal, LLC is the Debtor's counsel.
CAREPARTH HEALTHCARE: $630K Sale of Arlington Property Approved
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Texas
authorized Careparth Healthcare System, LLP's sale of the real
property located at 7440 Mansfield Cardinal Road, in Arlington,
Texas, for $630,000.
The sale is free and clear of all liens, interests, claims and
encumbrances, except for the liens that secure 2022 ad valorem
taxes which will remain attached to the Property, and become the
responsibility of the Purchaser.
The parties are authorized and directed to take all actions,
including the execution of documents, necessary or appropriate to
affect the sale of the Property.
At Closing, the Debtor will cause and instruct the title company
coordinating the sale of the Property to pay in full from the
proceeds of the sale of the Property, and the Debtor is authorized
and directed to pay, the amounts as follows:
A. All reasonable, customary and usual costs of Closing in
the sale of the Property including, without limitation, title
policy cost, ad valorem real property taxes for years through 2021
owed with 11 U.S.C. section 506(b) interest at the state statutory
rate of 1% per month, attorney and documents fees, a real estate
commission and any United States Trustee fees associated with such
payments; and
B. All remaining proceeds will be paid to the registry of the
Court pending further Order of the Court.
All entities, governmental or otherwise, will accept and honor the
sale of the Properties, in accordance herein and the Bankruptcy
Code.
The sale is final and will be effective and enforceable immediately
upon entry and will not be stayed pursuant to Bankruptcy Rule
6004(g).
The bankruptcy case is In re: Careparth Healthcare System, LLP,
Case No. 22-41333 (Bankr. N.D. Tex.).
CELSIUS NETWORK: Court Sets Auction Sale of Assets for Sept. 23
---------------------------------------------------------------
Judge Martin Glenn of the U.S. Bankruptcy Court for the Southern
District of New York authorized the bidding procedures proposed by
Celsius Network, LLC, and its affiliates in connection with the
auction sale of assets.
The salient terms of the Bidding Procedures are:
a. Bid Deadline: Sept. 21, 2022, at 4:00 p.m. (ET)
b. Initial Bid: In the event a Stalking Horse Bidder is
selected, the Starting Bid will include the amount provided for in
the Stalking Horse Bid, plus the amount of the bid protections (if
any), plus either $500,000 or such other amount as determined by
the Debtors in consultation with the Consultation Parties.
c. Deposit: 10% of the cash consideration of Initial Bid
d. Auction: If one or more Qualified Bids are received by the
Final Bid Deadline with respect to any applicable assets, then the
Debtors will conduct the Auction with respect to such assets. The
Auction for each applicable asset will commence on Sept. 23, at
10:00 a.m. (ET), via remote video, or such later time or other
place as the Debtors determine, in consultation with the
Consultation Parties.
e. Bid Increments: $500,000
f. Sale Hearing: Oct. 6, 2022, at 10:00 a.m. (ET)
g. Cure & Sale Objection Deadline: Sept. 29, 2022 at 4:00 p.m.
(ET)
h. Closing: Oct. 6, 2022 at 10:00 a.m. (WT) or as soon
thereafter as the Court's calendar permits
The Debtors will file a notice setting forth the results of the
Auction (if any) or otherwise present the Successful Bidder (if
any) at least three business days prior to the Sale Hearing.
Pursuant to the Bidding Procedures, the Debtors are authorized, but
not directed, to select one or more bidders to act as the Stalking
Horse Bidder and, after providing a draft to the Consultation
Parties for consultation, enter into a Stalking Horse Agreement
with such Stalking Horse Bidder.
The Assumption and Assignment Procedures are approved solely with
respect to Contracts of the Debtor entities that are related to the
Debtors' prepetition acquisition of the GK8 entities.
The Sale Notice is approved. As soon as practicable after entry of
the Order, the Debtors will serve the Bidding Procedures, the Sale
Notice, and the Cure Notice upon the Notice Parties.
Upon the closing of a Sale, GK8 will transfer to Debtor Celsius
Network Limited, and the Successful Bidder will not acquire: (i)
any claims or causes of action where any Debtor is a co-plaintiff
and (ii) any legal privilege or copies of documents related to such
transferred claims or causes of action. The Official Committee of
Unsecured Creditors and all parties in interest reserve their
rights with respect to any future Sale of some or all of the GK8
Assets pursuant to the Bidding Procedures.
Notice of the Motion satisfies the requirements of Bankruptcy Rule
6004(a).
Notwithstanding Bankruptcy Rules 6004(h) and 6006(d), the Order
will be immediately effective and enforceable upon entry.
A copy of the Bidding Procedures is available for free at
https://tinyurl.com/4afbmxwp from PacerMonitor.com free of charge.
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.
The Debtors tapped Joshua A. Sussberg, Esq., at Kirkland & Ellis,
LLP as legal counsel and Alvarez & Marsal North America, LLC as
financial advisor. Stretto, the claims agent, maintains the page
https://cases.stretto.com/celsius
CLASSIC REFRIGERATION: Wins Cash Collateral Access on Final Basis
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California,
Santa Ana Division, authorized Classic Refrigeration SoCal Inc. to
use cash collateral on a final basis.
The Debtor is permitted to use cash collateral in the form of cash
and cash equivalents on hand, and hereafter generated, that is
subject to a duly perfected lien in favor of the U.S. Small
Business Administration. The Debtor needs cash to pay ordinary and
necessary expenses in accordance with the interim budget, with a
20% variance.
As adequate protection, the SBA is granted a replacement lien
against the Debtor's personal property assets and the proceeds
thereof, to the same extent, priority and validity as the lien held
by the SBA as of the Petition Date.
Any diminution in the value of the SBA's collateral pursuant to the
subject SBA loan over the life of the bankruptcy case will entitle
the SBA to a super-priority claim pursuant to 11 U.S.C. sections
503(b), 507(a)(2) and 507(b).
The Debtor will make $731 in monthly adequate protection payments
to the SBA.
Hill Phoenix, Inc.'s claim to a junior judgment lien against
property of the estate pending final hearing will be adequately
protected by a replacement lien in same priority as existed pre
petition, without any adjudication at this time of ultimate
allowability.
A copy of the order is available at https://bit.ly/3KH9HPY from
PacerMonitor.com.
About Classic Refrigeration SoCal Inc.
Classic Refrigeration SoCal Inc. is in the business of designing,
instructing, equipping, servicing and maintaining large cold
storage units throughout Southern California.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 22-11239) on July 25,
2022. In the petition signed by David Rogers, chief financial
officer, the Debtor disclosed $6,000,000 in total assets and
$7,000,000 in total liabilities.
Judge Theodor Albert oversees the case.
Jeffrey K. Garfinkle, Esq., and Carolyn Djang, Esq., at Buchalter,
a Professional Corporation, is the Debtor's counsel.
CORINTHIAN COMMUNICATIONS: Trustee Hires Locke Lord as Counsel
--------------------------------------------------------------
Eric Huebscher, the Subchapter V trustee appointed in Corinthian
Communications Inc.'s Chapter 11 case, received approval from the
U.S. Bankruptcy Court for the Southern District of New York to hire
Locke Lord, LLP as his legal counsel.
The firm's services include:
(a) advising the trustee of his duties;
(b) advising and consulting on the conduct of the Debtor's
bankruptcy case;
(c) attending meetings and communicating with representatives
of the Debtor and other parties in interest;
(d) appearing before the court; and
(e) performing all other necessary legal services for the
trustee.
The firm's discounted hourly rates are as follows:
Stephanie Wickouski $975
Hanna Ciechanowski $425.75
If any other professionals are needed, their rates will be reduced
by at least 10 percent.
Stephanie Wickouski, Esq., senior counsel at Locke Lord, disclosed
in court filings that her firm is a "disinterested person" within
the meaning of Section 101(14) of the Bankruptcy Code.
Locke Lord can be reached through:
Stephanie Wickouski, Esq.
Hanna Ciechanowski, Esq.
Locke Lord LLP
Brookfield Place
200 Vesey Street, 20th Floor
New York, NY 10281-2101
Phone: 212-415-8600
Email: swickouski@lockelord.com
hanna.ciechanowski@lockelord.com
About Corinthian Communications
Corinthian Communications Inc. is a media buying and planning
company in New York.
On April 4, 2022, Corinthian Communications filed a petition under
Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. S.D.N.Y.
Case No. 22-10425), listing up to $500,000 in assets and up to $10
million in liabilities. Eric M. Huebscher serves as Subchapter V
trustee.
Judge Martin Glenn oversees the case.
Eric H. Horn, Esq., at A.Y Strauss, LLC is the Debtor's counsel.
CPE FEEDS: Court Approves $650K Sale of North Plant to Ker-Tec
--------------------------------------------------------------
Judge Robert L. Jones of the U.S. Bankruptcy Court for the Northern
District of Texas authorized CPE Feeds, Inc., to sell the real
property described as the "North Plant," as defined and identified
in the Contract of Purchase of Business Assets, to Ker-Tec, LLC, or
its assigns for $650,000.
The North Plant consists of the following:
a. The real property located at 2102 Lubbock Road,
Brownfield, Terry County, Texas;
b. personal property used in the Debtor's business such as
industrial machinery, front-end loaders, office equipment, scales,
and tools.
The Debtor, acting through either J. Tanner Skains or R. Lan
Skains, is authorized to execute the sales contract and each,
individually, is further authorized to sign any documents necessary
to facilitate the sale, including a Deed conveying the property to
the Purchaser.
The Sale is free and clear of any and all liens, claims, and
encumbrances claimed against the property sold.
The Debtor may take the necessary steps, including signing deeds,
bills of sale, and other documents, necessary to effectuate the
transfers herein authorized. The Title Company closing the
transaction hereby authorized to withhold the Seller's closing
costs and closing expenses as set forth in a Settlement Statement
signed by the counsel for the Debtor, from the final proceeds of
the sale. The Title Company will also withhold from the final
proceeds of the sale the amount necessary to satisfy all real
estate property taxes for calendar years 2019, 2020, and 2021 owed
by the Debtor to the Terry County Taxing Authorities. Following
the conclusion of the sale and the funding thereof, the Title
Company will pay the net proceeds of the sale to ABC Bank. The
Debtor will file a report with the Court detailing the allocation
of the purchase price, as set forth.
The claim(s) by the Terry County, Texas Taxing Authorities for
outstanding real and personal property taxes on any property
transferred pursuant to the Order will be paid in full, including
statutory interest and penalties, on or before the date of the
transfer. Any taxes not so paid will not be extinguished by this
Order and the tax liens for Tax Years 2020, 2021, and 2022 are
specifically retained by the Terry County, Texas Taxing Authorities
until such taxes are paid in full, and the purchasers assume the
personal liability for the 2022 taxes, if any.
About CPE Feeds, Inc.
CPE Feeds, Inc. is a privately held company in the animal food
manufacturing business. The Debtor sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No.
22-50022)
on March 1, 2022. In the petition signed by R. Lan Skains,
president, the Debtor disclosed up to $10 million in both assets
and liabilities.
Ryan C. Gentry, Esq., at McGowan and McGowan PC, is the Debtor's
counsel.
CPE FEEDS: Court Approves $755K Sale of South Plant to ABC Bank
---------------------------------------------------------------
Judge Robert L. Jones of the U.S. Bankruptcy Court for the Northern
District of Texas authorized CPE Feeds, Inc., to sell the real
property described as the "South Plant," as defined and identified
in the Contract of Purchase of Business Assets, to ABC Bank in
exchange for ABC agreeing to reduce the amount of its unsecured
claim to $755,000.
The North Plant consists of the following:
a. The real property located at 1678 Farm-to-Market Road 403,
Brownfield, Terry County, Texas;
b. personal property used in the Debtor's business such as
industrial machinery, front-end loaders, office equipment, scales,
and tools.
The Debtor, acting through either J. Tanner Skains or R. Lan
Skains, is authorized to execute the sales contract and each,
individually, is further authorized to sign any documents necessary
to facilitate the transfer, including a Deed conveying the property
to the transferee.
The transferee will take the property free and clear of any and all
liens, claims, and encumbrances claimed against the property
transferred. The Debtor may take the necessary steps, including
signing deeds, bills of sale, and other documents, necessary to
effectuate the transfers authorized.
The claim(s) by the Terry County, Texas Taxing Authorities for
outstanding real and personal property taxes on any property
transferred pursuant to the Order will be paid in full, including
statutory interest and penalties, on or before the date of the
transfer. Any taxes not so paid will not be extinguished by this
Order and the tax liens for Tax Years 2020, 2021, and 2022 are
specifically retained by the Terry County, Texas Taxing Authorities
until such taxes are paid in full, and the purchasers assume the
personal liability for the 2022 taxes, if any.
About CPE Feeds, Inc.
CPE Feeds, Inc. is a privately held company in the animal food
manufacturing business. The Debtor sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No.
22-50022)
on March 1, 2022. In the petition signed by R. Lan Skains,
president, the Debtor disclosed up to $10 million in both assets
and liabilities.
Ryan C. Gentry, Esq., at McGowan and McGowan PC, is the Debtor's
counsel.
DCP MIDSTREAM: Fitch Affirms 'BB+' Rating on Jr. Subordinated Debt
------------------------------------------------------------------
Fitch Ratings has affirmed DCP Midstream, LP's (DCP) and DCP
Midstream Operating, LP's (DCP Operating) 'BBB-' Long Term Issuer
Default Rating (IDR) following Phillips 66's (PSX) (NR) increased
ownership in DCP to 43.31% from 28.26%, and plan to repurchase the
outstanding units (representing 43% ownership). In addition, Fitch
has affirmed DCP Operating's senior unsecured ratings at 'BBB-' and
junior subordinated notes at 'BB+'. DCP's preferred equity ratings
were affirmed at 'BB'. The Rating Outlook is Stable.
Fitch views PSX's increased ownership as credit neutral for DCP.
PSX's acquisition integrates DCP's NGL footprint into its wellhead
to water strategy. PSX will have operational control, but there is
no evidence of increased parent support for DCP. While Fitch has
not changed its rating now, it will look to factors that may cause
closer alignment between PSX and DCP, such as execution of the
integrated strategy that Fitch believes would materially increase
cash flow from DCP or trigger a significant capital investment from
PSX.
Fitch's ratings reflect DCP's declining leverage, diverse asset
footprint and mostly investment grade customers, offset by volume
risk and higher commodity price risk relative to midstream peers.
KEY RATING DRIVERS
Phillips 66 Majority Ownership: PSX and Enbridge (ENB;
BBB+/Stable), the ultimate owners of DCP's general partner, have
completed a transaction to increase PSX's economic interest in DCP
to 43.31% from 28.26%. PSX now has majority control over the
operations of DCP, and only major decisions require unanimous
approval from PSX and ENB, reflecting a change in governance under
the joint venture ownership. There is no evidence of any
incremental contributions to DCP from PSX as DCP is FCF positive
and self-funding.
Fitch rates DCP on a standalone basis from its sponsors, with no
explicit notching from its parent companies' ratings; however, the
ratings reflect that its owners have been and are likely to remain
supportive of its operating and credit profile. In the past, ENB
and PSX have exhibited a willingness to forgo dividends. This
support was most recently demonstrated by the approval of the March
2020 distribution cut.
Scale and Scope of Operations: DCP's ratings reflect the size,
scale and diversity of its asset base. Also incorporated, is its
position as a large producer of natural gas liquids (NGLs) and
processor of natural gas. The partnership has a robust operating
presence in most of the key production regions within the U.S.,
specifically within the DJ Basin and Permian Basin spanning both
the Midland and Delaware Basins. DCP has a diverse set of largely
investment-grade customers and producers with no material customer
concentration.
The size and breadth of DCP's operations allow it to offer its
customers end-to-end gathering, processing, storage and
transportation solutions, giving it a competitive advantage within
the regions where they have significant scale. Excess capacity on
several of DCP's systems provide opportunities for volume growth
with incremental optimization expenses in higher margin regions to
improve utilization.
Volumetric and Commodity Price Exposure: DCP's ratings reflect its
exposure to volumetric and commodity price risks associated with
the domestic production and demand for natural gas and NGLs.
Approximately 50% of DCP's gross margin is provided from the
logistics and marketing (L&M) segment, which generally provides
fee-based cash flows with exposure to volumetric-risk.
Gathering and processing (G&P, approximately 50% of gross margin)
contracts are largely backed by dedicated acreage and are a mix of
non-commodity sensitive fee-based contracts and commodity sensitive
percent-of-proceeds and percent-of-liquids contracts. DCP is
expected to further benefit from its unhedged commodity-price
exposure in 2H22, as higher commodity prices spur increasing
production and DCP completes additional well connects in the DJ
Basin and Permian Basin. The recent James Lake System acquisition
further expands DCP's G&P footprint in the Permian.
As of 2Q22, approximately 70% of gross margin is fee-based, and DCP
has hedged 13% of the remaining margin. The company has taken
advantage of favorable pricing across associated hydrocarbons and
added hedges that reduce its sensitivity to a large drop in prices.
DCP's hedging program contributes to a steady cash flow profile but
also exposes it to longer-term hedge roll-over and commodity price
risks. The company is well hedged for each quarter in 2022.
Improving EBITDA Drives Leverage Decline: Fitch expects leverage to
decline to the 3.0x-3.3x range in 2022 and 2023, driven by
improving G&P volumes in DCP's key DJ and Permian Basin. (Fitch's
leverage calculation gives 50% equity credit to the junior
subordinated notes and 0% equity credit to the preferred units.)
Producers are expected to ramp production over the next few
quarters given commodity prices levels. DCP is investing in
incremental bolt-on opportunities and optimizations to drive
continued future growth into 2023.
On the L&M side of the business DCP is benefitting from third-party
shippers shifting into ethane recovery and is expected to see
increased throughput in 2H22. As the Fitch price deck returns
closer to mid-cycle leverage in the outer forecast years, leverage
is expected to moderate to 3.6x-3.8x range.
Capital Allocation Strategy: Management has reached their targeted
leverage metric per their bank covenant calculation as of 2Q22 LTM
financials, and is expected to continue to produce excess FCF
throughout Fitch's forecast period. Modest growth capex is expected
to continue to fund bolt-on opportunities in their G&P business in
the DJ and Permian basin footprints. Incremental optimization and
investment projects will be aimed at improving asset utilization
and added connectivity to Sand Hills and Southern Hills to better
serve customers. No large-scale M&A is assumed in Fitch's
forecast.
Parent Subsidiary Linkage: Fitch now assesses a parent subsidiary
relationship between PSX and DCP, reflecting the change in control
under the new JV ownership structure. Fitch believes PSX has a
stronger credit standalone credit profile (SCP). As such, Fitch
follows the stronger parent path to determine DCP's ratings. Legal
incentive is considered low as there are no guarantees or
cross-default provisions.
Strategic and operational incentives are considered low as the
incremental contribution DCP makes to PSX remains small with no
clearly defined plans to grow current operations. Additionally,
there is no evidence of avoidance costs as DCP and PSX currently
have contractual agreements. Due to the aforementioned rating
considerations, Fitch rates DCP on a standalone basis and does not
receive any uplift in the rating from PSX.
There is a parent subsidiary relationship between DCP and DCP
Operating. Fitch determines DCP's SCP based on consolidated
metrics. Fitch believes DCP Operating has a stronger SCP than DCP.
As such, Fitch has followed the stronger subsidiary path. Legal
ring-fencing is open as there are minimal limitations between the
entities. Access and control is evaluated as open given DCP's 100%
ownership of DCP operating and centralized treasury. Due to
aforementioned rating linkage considerations, Fitch rates DCP
Operating on a consolidated basis and, as such, has assigned the
same IDRs to both DCP and DCP Operating.
DERIVATION SUMMARY
DCP's ratings reflect its favorable size, scale, geographic and
business line diversity within the NGL production and
transportation and natural gas G&P space. The ratings recognize
DCP's greater exposure to commodity prices than other midstream
peers, with approximately 70% of gross margin supported by
fixed-fee contracts. This commodity price exposure has been
partially mitigated in the near term through DCP's use of hedges
for its NGL, natural gas and crude oil price exposure, pushing the
percentage of gross margin, either fixed-fee or hedged, up to 83%
as of 2Q22. This helps DCP's cash flow stability, but exposes it to
longer-term hedge roll-over and commodity price risks.
DCP is slightly smaller in terms of EBITDA generation but more
geographically diversified than NGL focused midstream peer Targa
Resources Corp. (BBB-/Stable). DCP's assets span across several
U.S. regions in multiple basins with significant footprints in the
DJ Basin, Delaware and Midland Basins in the Permian, and
SCOOP/STACK in the Midcontinent region, with volume growth expected
to come from the DJ and Permian assets. Targa's operations are
focused in the Permian Basin. Targa's gross commodity price
exposure is similar to that of DCP as Targa's gross margin is
80%-85% supported by fixed-fee or fee-floor contracts and hedges.
Fitch expects DCP's leverage to be around 3.0x-3.3x through 2023.
Targa's leverage is expected to be slightly higher in the range
between 3.4x-3.6x in 2023. Both companies' leverage position them
well within the 'BBB-' rating category.
ONEOK Inc (BBB/Stable) is significantly larger in terms of size and
scale compared to DCP. ONEOK's NGL transportation network is larger
than DCP's, with comparable basin diversification. About 85%-95% of
ONEOK's revenues are generated from fee-based contracts, the
majority of which are subject to volume risk. DCP earns less than
half the EBITDA than ONEOK. DCP's leverage is comparable to that of
ONEOK. ONEOK's leverage is expected to decline below the company's
4.0x target. ONEOK's limited commodity exposure and larger size and
scale account for the one-notch rating difference.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within The Rating Case for the Issuer:
-- Base case WTI oil price deck $100/bbl in 2022, $81/bbl in
2023, $62/bbl in 2024, and $50/bbl in 2025 and beyond; and
Henry Hub natural gas price of $6.25/mcf in 2022, $4.00/mcf in
2023, $3.25/mcf in 2024, and $2.75/mcf in 2025 and long term.
Fitch expects ethane to be influenced from the natural gas
price deck and the other NGL hydrocarbon movements to be
influenced from its WTI oil price deck;
-- Growth and sustainable capex in line with management's
guidance;
-- No significant acquisitions are included in the forecast;
-- Upcoming debt maturities to be repaid with FCF;
-- PSX is successful in acquiring the outstanding public units of
DCP.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- A demonstrated ability to maintain the percentage of fixed-fee
or hedged gross margin at or above 80% while maintaining
leverage (total debt with equity credit/operating EBITDA)
below 3.5x for a sustained period could lead to a positive
rating action;
-- Evidence of DCP becoming a material or growing component of
PSX;
-- Meaningful increase in scale.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Leverage expected above 4.5x on a sustained basis and may
result in at least a one-notch downgrade;
-- A significant decline in fixed-fee or hedged commodity leading
to gross margin less than 70% fixed fee or hedged without an
appropriate significant adjustment in capital structure,
specifically a reduction in leverage, would likely lead to at
least a one-notch downgrade;
-- A significant change in the ownership support structure from
GP owners to the consolidated entity particularly with regard
to the GP position on commodity price exposure, distribution
policies and capital structure at DCP, the operating
partnership.
LIQUIDITY AND DEBT STRUCTURE
Adequate Liquidity: As of June 30, 2022, DCP had approximately $1.4
billion of available liquidity. DCP's liquidity consists of the
undrawn portion of their $1.4 billion senior unsecured revolving
credit facility. There were no outstanding borrowings and $20
million letters of credit. DCP's $350 million accounts receivables
securitization facility had $305 million outstanding, and there was
$8 million of cash on the balance sheet.
Maturities are manageable. The nearest maturity is the $500 million
senior unsecured notes due in March 2023, followed by the $350
million accounts receivable facility is set to mature in 2024. The
revolver was recently amended to extend the maturity to 2027. As of
June 30, 2022, DCP was in compliance with all covenants.
ISSUER PROFILE
DCP is a midstream energy company that is a large producer and
marketer of NGLs, and processor of natural gas with operations in
the U.S. The G&P assets span several regions with significant
footprints in the DJ Basin, Delaware and Midland Basins in the
Permian.
Rating Prior
------ -----
DCP Midstream
Operating, LP
LT IDR BBB- Affirmed BBB-
senior unsecured LT BBB- Affirmed BBB-
junior subordinated LT BB+ Affirmed BB+
DCP Midstream, LP
LT IDR BBB- Affirmed BBB-
Preferred LT BB Affirmed BB
DOT DOT SMILE: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Dot Dot Smile, LLC
12000 Magnolia Avenue Suite 100
Riverside, CA 92503
Business Description: The Debtor is a wholesaler of children's
clothing.
Chapter 11 Petition Date: September 3, 2022
Court: United States Bankruptcy Court
Central District of California
Case No.: 22-13361
Judge: Hon. Wayne E. Johnson
Debtor's Counsel: Jeffrey S. Shinbrot, Esq.
JEFFREY S. SHINBROT, APLC
15620 Ventura Blvd.
Suite 1200
Sherman Oaks, CA 91403
Tel: 310-659-5444
Fax: 310-878-8304
Email: jeffrey@shinbrotfirm.com
Total Assets as of September 2, 2022: $4,478,922
Total Debts as of September 2, 2022: $5,638,742
The petition was signed by Jeffrey Eugene Thompson as chief
executive officer.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/EBULJWA/DOT_DOT_SMILE_LLC__cacbke-22-13361__0001.0.pdf?mcid=tGE4TAMA
EAST COAST WELDING: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: East Coast Welding and Construction Co., Inc.
1207 Wilson Road
Glen Burnie, MD 21061
Chapter 11 Petition Date: September 4, 2022
Court: United States Bankruptcy Court
District of Maryland
Case No.: 22-14850
Debtor's Counsel: Robert M. Stahl, Esq.
LAW OFFICES OF ROBERT M. STAHL
1142 York Road
Lutherville, MD 21093
Tel: 410-825-4800
Fax: 410-825-4880
Email: StahlLaw@comcast.net
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Christopher D. Brown as owner.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/Y65AQQQ/East_Coast_Welding_and_Construction__mdbke-22-14850__0001.0.pdf?mcid=tGE4TAMA
EBERHARDT PARTNERSHIP: Unsecureds Will Get 11.5% in Consensual Plan
-------------------------------------------------------------------
Eberhardt Partnership filed with the U.S. Bankruptcy Court for the
Northern District of California a Plan of Reorganization for Small
Business.
Debtor is a general partnership whose partners are Ian Eberhardt
and Fran Eberhard, husband and wife. It does business as Acme Saw
Sales and Service. It is in the business of selling saw blades to
cabinet shops, carpenters and other businesses and sharpening
various types of saw blades.
The proposed plan pays $60,600 to general unsecured creditors (or
an approximate dividend of 11.5%) if the plan is consensual
($45,600 or approximately 8.6% if the plan is non-consensual). The
liquidation figures assume that a Chapter 7 Trustee would not
liquidate any assets because all assets are substantially
over-encumbered. It also assumes no distribution to insiders.
The Plan Proponent's financial projections show that the Debtor will have projected disposable income of $316,420.
Debtor's business remains in recovery mode, initially plagued by
Covid shutdowns and now by supply chain problems. June 2022 revenue
at $34,000-$35,000/mo. For the foreseeable future. So as to pay out
a more generous dividend to general unsecured creditors, Debtor has
proposed a 60 month plan. Hence the final payment is projected to
be on or about November 2027.
This Plan of Reorganization proposes to pay creditors solely from
the revenue generated by the business.
Class 6 consists of General Unsecured Creditors. The allowed claims
of general unsecured creditors shall be paid a fund totaling
$60,600 ($45,600 if the plan is non-consensual) payable as
follows:
* A pro-rata disbursement of $250.00/mo. ($0.0 if the plan is
not consensual) commencing the first month after the Effective Date
for 12 consecutive months;
* A pro-rata disbursement of $1,200/mo. ($950.0 if the plan is
not consensual) for 48 months commencing on the 1st day of the 13th
month after the Effective Date.
Pro-rata means the entire amount of the claim divided by the entire
amount owed to creditors with allowed claims in this class. For any
general unsecured claimant whose distribution is less than $50.00,
Debtor may accrue the distribution and disburse once the accrual
reaches $50.00.
Class 7 consists of General Unsecured (insider claims). The insider
claims of Ian Eberhardt and Fran Eberhardt shall not receive any
distributions under the plan.
Class 8 consists of the Ian & Fran Eberhardt Equity Interests. Ian
Eberhardt and Fran Eberhardt shall retain their partnership
interest in the Debtor.
Debtor anticipates that it will continue operations. The plan uses
the mean gross revenue in the 4 months post-petition. It similarly
uses the mean expenses for the 1st four post-petition months except
as follows: Fran's partnership draw remains at $5,600/month. Ian
Eberhardt is working full time at $1,500/month to promote plan
feasibility. However, his pay will increase to $3,500/month
beginning the 13th month after the effective date.
A full-text copy of the Plan of Reorganization dated August 30,
2022, is available at https://bit.ly/3emOXAV from PacerMonitor.com
at no charge.
Attorney for Debtor:
Lars T. Fuller, Esq.
Sam Taherian, Esq.
Joyce K. Lau, Esq.
The Fuller Law Firm, P.C.
60 No. Keeble Ave.
San Jose, CA 95126
Telephone: (408) 295-5595
Facsimile: (408) 295-9852
Email: admin@fullerlawfirm.net
About Eberhardt Partnership
Eberhardt Partnership sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bakr. N.D. Cal. Case No. 22-50291) on April
6, 2022. In the petition filed by Franes Eberhardt, general
partner, the Debtor disclosed up to $500,000 in assets and up to $1
million in liabilities.
Judge Stephen L. Johnson oversees the case.
Lars Fuller, Esq., at The Fuller Law Firm, PC is the Debtor's
counsel.
EDGEWELL PERSONAL: S&P Alters Outlook to Neg., Affirms 'BB' ICR
---------------------------------------------------------------
S&P Global Ratings revised our outlook on U.S.-based Edgewell
Personal Care Co. to negative from stable to reflect the risk that
adjusted leverage could remain above 4x. S&P affirmed all its
ratings on the company, including the 'BB' issuer credit rating and
'BB' issue-level rating on the senior unsecured debt. The recovery
rating remains '3'.
The negative outlook reflects the possibility that S&P could lower
the ratings within the next 12 months if Edgewell does not
prioritize deleveraging and profitability does not improve,
resulting in leverage sustained above 4x.
The outlook revision to negative reflects Edgewell's
weaker-than-expected credit metrics. Despite organic growth driven
by distribution gains and recovery in consumption, especially in
the sun care segment, the company's year-to-date adjusted EBITDA
margin of 13% was below S&P's expectations. This is mainly due to
foreign currency and inflationary headwinds, including higher
transportation, labor, and commodity costs. Additionally, the
acquisition of Billie in November 2021 added to the company's net
debt. Although integration looks to be on track, S&P does not
anticipate any significant contribution to Edgewell's overall
EBITDA from Billie in the near term given the ongoing investments
required to expand the brand into retail stores. In our base-case
scenario, S&P expects adjusted leverage to be about 4.5x by the end
of 2022, improving to just below 4x by 2023 as its latest pricing
actions take effect and inflationary conditions ease.
Nevertheless, several risks could prevent Edgewell from restoring
profitability and deleveraging over the next year. Although S&P
Global Ratings' economists expect inflation to ease next year,
pressures that have mostly escalated through 2022 could prove more
persistent than S&P assumes. If they last longer, Edgewell's
profitability could be depressed beyond 2022, as the company
continues to price at a lag to its cost structure. Moreover, in the
event of escalating prices across the economy, consumers could
trade down from Edgewell's higher-margin premium products to
lower-margin offerings, including its private-label options. In
addition, weaker consumer spending could reduce overall demand for
the company's products and prevent reducing leverage to below 4x in
fiscal 2023.
Edgewell's capital allocation priorities could impede deleveraging
progress. Despite net leverage trending above its publicly stated
company-defined target of 2x-3x, management reiterated its
willingness to continue opportunistically repurchasing shares. As
of June 30, Edgewell had 6.9 million shares remaining under its
authorized repurchase program. The company stated that it will
spend about $100 million annually over the next three years on
share repurchases. S&P said, "Through the first nine months of
fiscal 2022, it had spent $110 million; we expect $120 million for
the year. This comes on the heels of the $310 million acquisition
of Billie, which increased leverage above 4x from less than 3x. In
our base-case forecast, we assume share repurchases will be lower
in fiscal 2023. While we expect the company to generate sufficient
free operating cash flow (FOCF), its continued appetite for
opportunistic acquisitions and repurchases could weaken credit
metrics more than we anticipate."
The negative outlook reflects the potential for a lower rating over
the next 12 months if the company is unable to de-lever in line
with S&P's expectations, and adjusted leverage remains above 4x in
2023.
S&P could lower its ratings if:
-- Edgewell exhibits aggressive financial policies, including
continued prioritization of share repurchases over debt reduction,
multiple bolt-on acquisitions, or an unexpected transformational
acquisition;
-- Operating performance falls short of our expectations due to
reduced consumer spending because of weaker economic conditions;
-- Inflationary conditions persist and the company cannot offset
cost inflation with higher prices and productivity savings; or
-- Competition from larger rivals and online shave clubs
escalates, which hastens market share losses and wet shave declines
reemerge.
S&P could revise its outlook to stable if Edgewell improves its
operating performance such that adjusted leverage is sustained
below 4x. This could happen if:
-- Consumption trends for the company's products remain healthy;
-- Inflationary conditions and supply chain constraints subside;
and
-- Financial policies are consistent with S&P's expectations.
ESG credit indicators: E-2; S-2; G-2
ENDO INTERNATIONAL: TKD, et al. Advise on NAS Committee
-------------------------------------------------------
Pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure,
the law firms of Tarter Krinsky & Drogin LLP, Martzell, Bickford &
Centola, Creadore Law Firm PC, Law Offices of Kent Harrison
Robbins, P.A., and Levenfeld Pearlstein, LLC submitted a verified
statement to disclose that it is representing the Ad Hoc Committee
of NAS Children in the Chapter 11 cases of Endo International PLC,
et al.
The NAS Committee is comprised of parents and guardians advocating
on behalf of children born with Neonatal Abstinence Syndrome. The
NAS Committee has appeared in other bankruptcy cases involving
claims pertaining to the opioid crisis, including In re Purdue
Pharma LP, et al., Case No. 19-23649, In re Mallinckrodt, Case No.
20-12522 and In re Insys Therapeutics, Inc., Case No. 19-11292.
After the commencement of these Chapter 11 Cases, on or about
August 17, 2022, the NAS Committee determined that it would monitor
and take positions, as necessary, in these cases, and, thereafter,
retained local counsel, Tarter Krinsky & Drogin LLP, to represent
the NAS Committee in the Chapter 11 Cases.
As of Aug. 29, 2022, each member of the NAS Committee and their
disclosable economic interests are:
L.E.
c/o Donald E. Creadore
The Creadore Law Firm, P.C.
450 Seventh Avenue - Suite 1408
New York, NY 10123
c/o Scott R. Bickford, Esq.
Martzell, Bickford & Centola
338 Lafayette Street
New Orleans, LA 70130
c/o Kent Harrison Robbins, Esq.
242 NE 27th Street
Miami FL 33137-4522
* Unsecured; Unliquidated Claim for personal injuries; economic
loss; and medical monitoring
K.L.
c/o Donald E. Creadore
The Creadore Law Firm, P.C.
450 Seventh Avenue - Suite 1408
New York, NY 10123
c/o Scott R. Bickford, Esq.
Martzell, Bickford & Centola
338 Lafayette Street
New Orleans, LA 70130
c/o Kent Harrison Robbins, Esq.
242 NE 27th Street
Miami FL 33137-4522
* Unsecured; Unliquidated Claim for personal injuries; economic
loss; and medical monitoring
T.H.
c/o Donald E. Creadore
The Creadore Law Firm, P.C.
450 Seventh Avenue - Suite 1408
New York, NY 10123
c/o Scott R. Bickford, Esq.
Martzell, Bickford & Centola
338 Lafayette Street
New Orleans, LA 70130
c/o Kent Harrison Robbins, Esq.
242 NE 27th Street
Miami FL 33137-4522
* Unsecured; Unliquidated Claim for personal injuries; economic
loss; and medical monitoring
G.T.
c/o Donald E. Creadore
The Creadore Law Firm, P.C.
450 Seventh Avenue - Suite 1408
New York, NY 10123
c/o Scott R. Bickford, Esq.
Martzell, Bickford & Centola
338 Lafayette Street
New Orleans, LA 70130
c/o Kent Harrison Robbins, Esq.
242 NE 27th Street
Miami FL 33137-4522
* Unsecured; Unliquidated Claim for personal injuries; economic
loss; and medical monitoring
M.B.
c/o Donald E. Creadore
The Creadore Law Firm, P.C.
450 Seventh Avenue - Suite 1408
New York, NY 10123
c/o Scott R. Bickford, Esq.
Martzell, Bickford & Centola
338 Lafayette Street
New Orleans, LA 70130
c/o Kent Harrison Robbins, Esq.
242 NE 27th Street
Miami FL 33137-4522
* Unsecured; Unliquidated Claim for personal injuries; economic
loss; and medical monitoring
B.O.
c/o Donald E. Creadore
The Creadore Law Firm, P.C.
450 Seventh Avenue - Suite 1408
New York, NY 10123
c/o Scott R. Bickford, Esq.
Martzell, Bickford & Centola
338 Lafayette Street
New Orleans, LA 70130
c/o Kent Harrison Robbins, Esq.
242 NE 27th Street
Miami FL 33137-4522
* Unsecured; Unliquidated Claim for personal injuries; economic
loss; and medical monitoring
C.K.
c/o Donald E. Creadore
The Creadore Law Firm, P.C.
450 Seventh Avenue - Suite 1408
New York, NY 10123
c/o Scott R. Bickford, Esq.
Martzell, Bickford & Centola
338 Lafayette Street
New Orleans, LA 70130
c/o Kent Harrison Robbins, Esq.
242 NE 27th Street
Miami FL 33137-4522
* Unsecured; Unliquidated Claim for personal injuries; economic
loss; and medical monitoring
A.D.
c/o Donald E. Creadore
The Creadore Law Firm, P.C.
450 Seventh Avenue - Suite 1408
New York, NY 10123
c/o Scott R. Bickford, Esq.
Martzell, Bickford & Centola
338 Lafayette Street
New Orleans, LA 70130
c/o Kent Harrison Robbins, Esq.
242 NE 27th Street
Miami FL 33137-4522
* Unsecured; Unliquidated Claim for personal injuries; economic
loss; and medical monitoring
A.F.
c/o Donald E. Creadore
The Creadore Law Firm, P.C.
450 Seventh Avenue - Suite 1408
New York, NY 10123
c/o Scott R. Bickford, Esq.
Martzell, Bickford & Centola
338 Lafayette Street
New Orleans, LA 70130
c/o Kent Harrison Robbins, Esq.
242 NE 27th Street
Miami FL 33137-4522
* Unsecured; Unliquidated Claim for personal injuries; economic
loss; and medical monitoring
T.F.
c/o Donald E. Creadore
The Creadore Law Firm, P.C.
450 Seventh Avenue - Suite 1408
New York, NY 10123
c/o Scott R. Bickford, Esq.
Martzell, Bickford & Centola
338 Lafayette Street
New Orleans, LA 70130
c/o Kent Harrison Robbins, Esq.
242 NE 27th Street
Miami FL 33137-4522
* Unsecured; Unliquidated Claim for personal injuries; economic
loss; and medical monitoring
B.S.
c/o Donald E. Creadore
The Creadore Law Firm, P.C.
450 Seventh Avenue - Suite 1408
New York, NY 10123
c/o Scott R. Bickford, Esq.
Martzell, Bickford & Centola
338 Lafayette Street
New Orleans, LA 70130
c/o Kent Harrison Robbins, Esq.
242 NE 27th Street
Miami FL 33137-4522
* Unsecured; Unliquidated Claim for personal injuries; economic
loss; and medical monitoring
E.D.
c/o Donald E. Creadore
The Creadore Law Firm, P.C.
450 Seventh Avenue - Suite 1408
New York, NY 10123
c/o Scott R. Bickford, Esq.
Martzell, Bickford & Centola
338 Lafayette Street
New Orleans, LA 70130
c/o Kent Harrison Robbins, Esq.
242 NE 27th Street
Miami FL 33137-4522
* Unsecured; Unliquidated Claim for personal injuries; economic
loss; and medical monitoring
Counsel for Ad Hoc Committee of NAS Children can be reached at:
TARTER KRINSKY & DROGIN LLP
Scott S. Markowitz, Esq.
Rocco A. Cavaliere, Esq.
1350 Broadway, 11th Floor
New York, NY 10018
Tel: (212) 216-8000
E-mail: smarkowitz@tarterkrinsky.com
rcavaliere@tarterkrinsky.com
MARTZELL, BICKFORD & CENTOLA
Scott R. Bickford, Esq.
Lafayette Street
New Orleans, LA 70130
Tel: 504-581-9065
Fax: 504-581-7635
E-mail: sbickford@mbfirm.com
srd@mbfirm.com
usdcndoh@mbfirm.com
CREADORE LAW FIRM PC
Donald Creadore, Esq.
450 Seventh Avenue, 14th Floor
New York, NY 10123
Tel: 212-355-7200
E-mail: donald@creadorelawfirm.com
LAW OFFICES OF KENT HARRISON ROBBINS, P.A.
242 Northeast 27th Street
Miami, FL 33137
Tel: (305) 532-0500
Fax: (305) 531-0150
E-mail: khr@khrlawoffices.com
- and -
LEVENFELD PEARLSTEIN, LLC
Harold D. Israel
2 North LaSalle St., Suite 1300
Chicago, IL 60602
Tel: 312-346-8380
Fax: 312-346-8434
E-mail: hisrael@lplegal.com
A copy of the Rule 2019 filing, downloaded from PacerMonitor.com,
is available at https://bit.ly/3CUWYXW and https://bit.ly/3RAoQ7T
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. I ts
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.
ENTRUST ENERGY: Can Pursue Bid to Stop ERCOT's $296-Mil. Claim
--------------------------------------------------------------
Daniel Gill of Bloomberg Law reports that a trustee liquidating
Entrust Energy Inc. can continue with its lawsuit to block the
Electric Reliability Council of Texas's $296 million payment claim,
after a judge said the trustee made plausible arguments.
ERCOT, a grid operator and wholesaler to utilities in the state,
submitted claims in Entrust's bankruptcy to get paid on energy
delivered. Entrust, which filed for bankruptcy in March, 2021 after
a winter storm that knocked out power for millions of customers,
sued to wipe out ERCOT's claim, saying it was excessive and
avoidable.
Rehash of Original Motion
Anna Phillips, solely in her capacity as Liquidating Trustee of the
Entrust Liquidating Trust, asked the Court to deny a motion by
ERCOT to dismiss the Trustee's amended complaint.
"ERCOT's Motion is a warmed-over repeat of the motion to dismiss it
filed in response to the Trustee's original complaint -- a motion
that was largely rejected by this Court. ERCOT once again argues
that the Court should abstain under various theories from
adjudicating the value of the proofs of claim ERCOT voluntarily
filed in this Court. The Court rejected these arguments when ERCOT
made them in the original motion to dismiss, and in the related
cases of Brazos Electric Power Cooperative, Inc. v. ERCOT and Just
Energy Group Inc. v. ERCOT. The Court was right on each of those
prior occasions, and ERCOT's rehashed arguments do not warrant a
different result now that the Trustee has filed an Amended
Complaint," the Trustee said.
"ERCOT also argues that the Trustee has failed to state its claims
for mitigation, violations of the Texas Uniform Fraudulent Transfer
Act ("TUFTA"), an uncompensated taking, and gross negligence. The
Court has already rejected ERCOT's arguments concerning mitigation
and gross negligence, and as with the abstention arguments, ERCOT
gives no reason why the Court should reverse itself now."
"ERCOT's arguments concerning the TUFTA claim also lacks merit.
ERCOT admits that the Trustee can assert a TUFTA claim on behalf of
its creditors but argues that the Trustee has not alleged the
identity of those creditors with enough specificity. But ERCOT
relies upon the heightened pleading standard of Rule 9(b), which
does not apply here. The Trustee has done enough to plausibly
allege a TUFTA claim, which is all that Rule 8 requires.
"ERCOT is also wrong about the Trustee's taking claim, which is
based on ERCOT's uncompensated taking of the Debtors' customer
contracts. ERCOT argues that a Texas regulation bars this claim.
But this argument is plainly refuted by the Constitution's
Supremacy Clause. ERCOT also asserts that this claim sounds in
contract. The Trustee, however, has alleged in detail that ERCOT
was not exercising a contractual remedy, but rather was acting in a
sovereign capacity pursuant to Texas statutes and regulations.
ERCOT further argues that it did not take the Debtors' property for
public use. This argument is nonsensical. The public use
requirement does not act as a limitation on the Trustee's cause of
action -- this requirement limits ERCOT's power to take away
private property. Finally, ERCOT asserts (without citation to
authority) that the Trustee's claim seeking the value of its taken
property is in fact a disguised request for consequential damages.
ERCOT can only make this argument by replacing the Trustee's well-
pleaded allegations with contradictory statements, which the Court
cannot do on a motion to dismiss."
About Entrust Energy
Houston, Texas-based Entrust Energy, Inc. generates, transmits and
distributes electrical energy to homes and businesses.
Entrust Energy and 14 of its affiliates sought Chapter 11
bankruptcy protection (Bankr. S.D. Tex. Lead Case No. 21-31070) on
March 30, 2021. At the time of the filing, Entrust Energy
disclosed total assets of between $100 million and $500 million and
total liabilities of between $50 million and $100 million.
Judge Marvin Isgur oversees the cases.
The Debtors tapped Baker & Hostetler, LLP and Alvarez & Marsal
North America, LLC as their legal counsel and financial advisor,
respectively. BMC Group, Inc., is the claims noticing and
solicitation agent.
The U.S. Trustee for Region 7 appointed an official committee of
unsecured creditors in the Debtors' Chapter 11 cases on April 28,
2021. McDermott Will & Emery, LLP and FTI Consulting, Inc., serve
as the committee's legal counsel and financial advisor,
respectively.
ENVISION HEALTHCARE: S&P Upgrades ICR to 'CCC', Outlook Negative
----------------------------------------------------------------
S&P Global Ratings raised our issuer credit rating on U.S.
physician staffing and ambulatory services company Envision
Healthcare Corp. to 'CCC' from 'SD' (selective default). The
outlook is negative.
At the same time, S&P raised the rating on Envision's existing
first-lien term loan ('fourth-out') to 'CC' from 'D', and senior
notes to 'CC' from 'D'. The recovery rating is '6' for both
issues.
S&P said, "We assigned ratings to three new issues: 'B' rating to
its first-lien term loan (first-out tranche) with expectations for
full recovery (100+%); 'CCC' rating to its first-lien term loan
(second-out tranche) with average recovery expectations (30%-50%;
rounded estimate: 40%); and 'CC' rating to its first-lien term loan
(third-out tranche) with negligible recovery expectations (0%-10%;
rounded estimate: 0%).
"The negative outlook reflects our view that the capital structure
could still be unsustainable, and there remains an elevated risk
for further distressed activity."
Envision recently completed the second of a series of two
restructurings that consisted of a 'collateral transfer'(via an
unrestricted subsidiary designation) in April, and a priming up
tiering loan exchange in early August.
S&P said, "Similar to the April transaction, we view the latest one
as distressed due to the large discounts to par and maturity
extensions that we believe investors were compelled to accept.
Despite the completion of these two transactions, we believe the
company's capital structure could still be unsustainable because of
the still high leverage and challenging business prospects.
Further, its unsecured notes continue to trade at a significant
discount, which we believe substantially increases the likelihood
for further open market repurchases.
"Our 'CCC' issuer credit rating reflects still very weak credit
measures, and our view its capital structure may still be
unsustainable. The two restructurings resulted in reduced debt for
Envision (excluding the debt at the unrestricted AmSurg LLC
subsidiary), but increased debt on a consolidated basis. Ultimately
for Envision, the restructurings extended debt maturities, and put
a lot of cash on the balance sheet from the proceeds of new debt
issued at Amsurg, providing Envision with the flexibility to
improve its operations. Debt leverage remains very high and the
company will likely face cash flow deficits over the near term. We
also believe Envision faces a number of business challenges."
Envision's physician services business continues to struggle.
Business prospects for Envision's physician services business have
deteriorated, as same-contract revenue is always contending with
chronic rate pressure on its in-network business. Furthermore, the
recently implemented No Surprises Act seems to be having a more
adverse impact on providers than what was broadly anticipated.
Rates for out-of-network business have declined, complicating the
negotiating relationships with the payors. Furthermore, Envision is
experiencing a significant amount of lost revenue from contract
terminations, though a significant amount of it is intentional.
S&P said, "The negative outlook reflects our view that the capital
structure remains unsustainable and that there is a potential for
an event of default or another distressed debt exchange over the
next 12 months.
"We could lower our rating on Envision if it pursues another debt
exchange or restructuring we view as distressed.
"We could raise our rating on Envision if we view a distressed
exchange or further restructuring as less likely. This would likely
entail a significant improvement in business prospects,
particularly the reimbursement environment."
ESG credit indicators: E-2, S-3, G-3
S&P said, "Social and governance factors are a moderately negative
consideration in our credit rating analysis. As one of the largest
players in the physician staffing industry, Envision generates a
portion of its revenue from out-of-network services. In our view,
this could result in significant patient bills that may be disputed
and undergo lengthy negotiation with powerful payors. 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 the majority of rated entities owned by private-equity
sponsors. Our assessment also reflects the generally finite holding
period and focus on maximizing shareholder returns."
ERIKA BLOOM: Case Summary & 15 Unsecured Creditors
--------------------------------------------------
Debtor: Erika Bloom Pilates Plus LLC
DBA Erika Bloom Pilates
14 E. 60th Street
New York, NY 10022
Chapter 11 Petition Date: September 4, 2022
Court: United States Bankruptcy Court
Southern District of New York
Case No.: 22-11194
Debtor's Counsel: Narissa A. Joseph, Esq.
LAW OFFICES OF NARISSA A. JOSEPH
305 Broadway
Suite 1001
New York, NY 10007
Tel: 212-233-3060
Fax: 646-607-3335
Email: njosephlaw@aol.com
Total Assets: $16,273
Total Liabilities: $2,572,434
The petition was signed by Erika K. Bloom as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 15 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/4FBFIFY/Erika_Bloom_Pilates_Plus_LLC__nysbke-22-11194__0001.0.pdf?mcid=tGE4TAMA
EYEPOINT PHARMACEUTICALS: Compelled to Produce Sales Documents
--------------------------------------------------------------
EyePoint Pharmaceuticals, Inc. received a signed version of a
subpoena on Aug. 26, 2022, from the U.S. Attorney's Office for the
District of Massachusetts seeking production of documents related
to sales, marketing and promotional practices, including as pertain
to DEXYCU.
The Company intends to cooperate fully with the government in
connection with this matter.
About EyePoint Pharmaceuticals
EyePoint Pharmaceuticals, Inc., formerly pSivida Corp. --
http://www.eyepointpharma.com-- headquartered in Watertown, MA,
is a specialty biopharmaceutical company committed to developing
and commercializing innovative ophthalmic products in indications
with high unmet medical need to help improve the lives of patients
with serious eye disorders. The Company currently has two
commercial products: DEXYCU, the first approved intraocular product
for the treatment of postoperative inflammation, and YUTIQ, a
three-year treatment of chronic non-infectious uveitis affecting
the posterior segment of the eye.
EyePoint reported a net loss of $58.42 million for the year ended
Dec. 31, 2021, a net loss of $45.39 million for the year ended
Dec. 31, 2020, a net loss of $56.79 million for the year ended Dec.
31, 2019, and a net loss of $53.17 million for the year ended
June 30, 2018. As of June 30, 2022, the Company had $233.43
million in total assets, $82.07 million in total liabilities, and
$151.37 million in total stockholders' equity.
FIRST GUARANTY: Court to Approve $4.8 Mil. Servicing Rights Sale
----------------------------------------------------------------
Steven Church of Bloomberg News reports that First Guaranty
Mortgage Corp. won support for its effort to sell servicing rights
to a portfolio of loans when a judge agreed to approve the sale
once final details are resolved.
US Bankruptcy Judge Craig T. Goldblattsaid he would sign an order
authorizing the sale once various creditor groups agree to final
wording. The sale would be an important step toward ending the
company’s Chapter 11 bankruptcy.
Under the proposal, the company, a non-bank lender backed by bond
giant Pacific Investment Management Co., will sell the servicing
rights to Servis One Inc. for $4.8 million.
About First Guaranty Mortgage
First Guaranty Mortgage Corporation -- https://fgmc.com -- was a
full service, non-bank mortgage lender, offering a full suite of
residential mortgage options tailored to borrowers' different
financial situations. It was one of the leading independent
mortgage companies in the United States that originated residential
mortgages through a national platform.
Just before the bankruptcy filing, as a result of an extreme and
unanticipated liquidity crisis and resultant inability to obtain
additional capital, FGMC ceased all of its mortgage loan
origination activity and separated nearly 80% of its workforce.
FGMC and an affiliate commenced Chapter 11 Cases to evaluate their
options, accommodate their customers, and maximize and preserve
value for all stakeholders.
First Guaranty Mortgage Corporation sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. D. Del Case No. 22-10584) on
June 30, 2022. Affiliate Maverick II Holdings, LLC also sought
bankruptcy protection (Bankr. D. Del. Case No. 22-10583). In the
petition signed by Aaron Samples, chief executive officer, FGMC
disclosed up to $1 billion in both assets and liabilities.
Dentons US LLP and Pachulski Stang Ziehl, and Jones LLP represent
the Debtor as counsel. Kurtzman Carson Consultants, LLC, serves as
the Debtors' claims and notice agent.
LVS II SPE XXXIV LLC, as Cash Flow DIP Lender, is represented by
lawyers at Greenberg Traurig, LLP. The Cash Flow DIP Lender is an
indirect subsidiary of a private investment managed by Pacific
Investment Management Company LLC. B2 FIE IV LLC, an affiliate of
the DIP Lender, owns 100% of the equity interests of FGMC.
Barclays Bank PLC serves as DIP Repo Agent and DIP Repo Purchaser.
Barclays Capital Inc. serves as DIP MSFTA Counterparty. They are
represented by Hunton Andrews Kurth LLP and Potter Anderson &
Corroon LLP.
FLY LEASING: S&P Downgrades ICR to 'CCC-', On CreditWatch Negative
------------------------------------------------------------------
S&P Global Ratings lowered all its ratings, including the issuer
credit rating on Fly Leasing Ltd. to 'CCC-' from 'B-', and placed
them on CreditWatch with negative implications.
S&P said, "We also lowered our issue-level rating on Fly Funding II
S.a.r.l's term loan to 'CCC+' from 'B+', and on the company's
$390.5 million senior unsecured notes to 'CC' from 'CCC+', in line
with the lower issuer rating. Additionally, we discontinued our
rating on Fly Willow Funding's term loan since it was fully repaid
as of July 31, 2022.:"
The downgrade follows Fly's disclosure in its financial statements
that it intends to seek board authorization to repurchase its
senior unsecured notes. In its financial statements for the quarter
ended June 30, 2022, Fly disclosed that it intends to seek
authorization from its Board of Directors to pursue the
opportunistic repurchase of its senior unsecured notes from
time-to-time. Fly's $390.5 million senior unsecured notes due 2024
have been trading at a significant discount to par since late June.
Therefore, S&P would expect to view a repurchase transaction at
these prices as a distressed exchange, and tantamount to default.
S&P believes the disclosure indicates the company's intent to
repurchase some of these notes in the near term. Therefore, S&P
lowered its issuer rating on Fly to 'CCC-' and placed all ratings
on CreditWatch with negative implications.
Fly has sizeable debt obligations coming up over the next two
years. As of June 30, 2022, Fly had more than $400 million in
secured debt repayments coming due in 2023, including the Fly
Aladdin facility that the company is now current on (matures June
2023; $176 million outstanding as of June 30, 2022).
In July 2022, Fly transferred several aircraft into the ABS asset
pool (related to the transaction completed in November 2021). As a
result of these asset transfers, the company was able to pay down
secured debt outstanding against those specific aircraft using its
restricted cash (part of the proceeds from the ABS issuance were
previously held in restricted cash pending these asset transfers).
As a result of this, the outstanding amount in the Fly Aladdin
facility declined to $106 million as of July 31, 2022. However,
despite this partial paydown, S&P believes Fly's upcoming debt
obligations are still sizeable.
Carlyle Aviation, Fly's parent, has historically accessed the
aircraft ABS market to meet its financing needs. However, S&P
believes Fly's ability to refinance its debt obligations through a
new issuance in the capital markets is currently limited given the
current volatility in the capital markets, and a weaker
macroeconomic environment.
S&P also continues to view Carlyle's financial policy with respect
to Fly as very aggressive, which further limits the company's
liquidity position. Through the 12-month period ended June 30,
2022, Fly has paid about $140 million in advances to the ultimate
parent (Carlyle Aviation Fly Ltd.). The company reported that in
July 2022, more than $100 million of these advances were used to
complete share repurchase transactions (essentially converting the
advances into shareholder returns).
The negative CreditWatch placement reflects the likelihood that
Fly's ratings could be downgraded further within the next six
months if the company announces its intention to engage in a debt
repurchase or similar restructuring (or announces that it has
already done so) that we consider distressed and therefore
tantamount to a default.
ESG credit indicators: E-2; S-3; G-3
FREE SPEECH: Faces Another Sandy Hook Damages Trial
---------------------------------------------------
James Nani of Bloomberg Law reports that Infowars' parent company
received a bankruptcy court permission to participate in a
defamation damages trial over its lies about the 2012 Sandy Hook
Elementary School massacre, dropping previous opposition to taking
part in the case.
Judge Christopher Lopez's decision sets up Free Speech Systems LLC,
owned by right-wing conspiracist Alex Jones, to face trial in early
September in Connecticut state court over the amount of damages to
be paid to the families of shooting victims.
Free Speech had initially refused to participate in the trial, but
reversed course after an agreement with Jones and the families.
Lopez, who's overseeing Free Speech's Chapter 11 case in the US
Bankruptcy Court for the Southern District of Texas, said Monday he
will lift protection against ongoing litigation for Free Speech
Systems.
Generally, litigation against a Chapter 11 debtor is paused in a
bankruptcy unless a judge allows otherwise. Free Speech earlier
this month had asked the court to deny the Connecticut families'
request to allow the company to take part on the state trial. Free
Speech submitted court filings on Sunday, indicating its
willingness to undergo trial.
The Connecticut proceedings could add to the potential damages owed
by Free Speech and Jones to the victims' families for calling them
crisis actors hired for a hoax.
A Texas trial court earlier this month found Jones and Free Speech
liable for nearly $50 million in damages to parents Neil Heslin and
Scarlett Lewis for falsely claiming that their son Jesse Lewis'
shooting death was fabricated.
Lopez noted his order doesn't allow enforcement against Free Speech
for any potential damages that may be rewarded in the Connecticut
case.
The judge also signed off on applications for Free Speech to hire
Pattis & Smith LLC and The Reynal Law Firm PC for the Connecticut
trial and how costs will be split between Jones and Free Speech.
A Connecticut bankruptcy court earlier this month ruled that the
Connecticut defamation case against Jones could also move forward.
Jones has not filed for bankruptcy protection while Free Speech
filed for bankruptcy protection in July.
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.
GAMESTOP CORP: S&P Withdraws 'B' Issuer Credit Rating
-----------------------------------------------------
S&P Global Ratings withdrew all of its ratings on GameStop Corp.,
including its 'B' issuer credit rating, at the issuer's request.
S&P's outlook on the company was stable at the time of the
withdrawal.
GB SCIENCES: Issues Options to Officers, Directors
--------------------------------------------------
GB Sciences, Inc. issued options to a total of seven persons which
include the officers and directors of the Company, who will be
instrumental in obtaining an up-listing of the common shares of the
Company onto the NASDAQ Stock Market. The Options will vest on the
effective date of the up-listing, and will equal options sufficient
to purchase 13% of the issued and outstanding common shares of the
Company on a fully diluted basis, as of the Effective Date. The
exercise price of one Option will equal 80% of the value of one
share of common stock on the Effective Date.
The Options were not registered under the Act and were issued in
reliance upon the exemption from registration contained in Section
4(2) of the Act. The securities, as well as the shares underlying
the Options, may not be reoffered or sold in the United States by
the holders in the absence of an effective registration statement,
or valid exemption from the registration requirements of the Act.
About GB Sciences
Headquartered in Las Vegas, Nevada, GB Sciences, Inc. is a
phytomedical research and biopharmaceutical drug development
company whose goal is to create patented formulations of
plant-inspired, complex therapeutic mixtures for the prescription
drug market that target a variety of medical conditions. The
Company is engaged in the research and development of plant-based
medicines and plans to produce plant-inspired, complex therapeutic
mixtures based on its portfolio of intellectual property.
GB Sciences reported a net loss of $530,873 for the year ended
March 31, 2022, compared to a net loss of $3.73 million for the
year ended March 31, 2021. As of March 31, 2022, the Company had
$2.55 million in total assets, $4.33 million in total liabilities,
and a total stockholders' deficit of $1.78 million.
Margate, Florida-based Assurance Dimensions, the Company's auditor
since 2020, issued a "going concern" qualification in its report
dated June 30, 2022, citing that the Company has sustained net
losses since inception, which have caused an accumulated deficit of
$104,580,122 at March 31, 2022. The Company also had a working
capital deficit of $3,607,638 and consumed cash in its operating
activities of $1,866,154 including $87,772 used in discontinued
operations for the year ended March 31, 2022. These factors raise
substantial doubt about the Company's ability to continue as a
going concern.
GIRARDI & KEESE: Edelson Can Add Fraud Claims in Fee Case
---------------------------------------------------------
Celeste Bott of Law360 reports that an Illinois federal judge on
Tuesday granted Edelson PC's bid to add fraud claims to its lawsuit
against ex-Girardi Keese partners David Lira and Keith Griffin,
despite concerns from the former partners that it would force them
to litigate the same issues in two different states.
Edelson PC moved to file an amended complaint in its Illinois
litigation seeking the recovery of unpaid fees for its work as the
now-bankrupt Girardi Keese's local counsel for certain families
that sued Boeing over the October 2018 Lion Air crash.
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
GIRARDI & KEESE: Victims Sue Defunct Litigation Partners
--------------------------------------------------------
Brandon Lowrey of Law360 reports that a family of Girardi Keese
victims sued litigation lenders and other secured creditors in the
defunct law firm's bankruptcy case Tuesday, August 30, 2022, saying
the lenders improperly accepted money that belonged to the law
firm's clients and challenging the validity and priority of more
than $37 million in claims.
The complaint, filed in Los Angeles bankruptcy court, marks the
latest threat to lenders that pumped millions into the
scandal-plagued plaintiff's firm as it spiraled toward insolvency.
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: Taps Carlson Gaskey as Special Counsel
-------------------------------------------------------------
Gissing North America, LLC and affiliates seek approval from the
U.S. Bankruptcy Court for the Eastern District of Michigan to
employ Carlson Gaskey & Olds, PC as their special counsel.
The Debtors require legal assistance in the adversary proceeding
entitled Mitsuiya Industries, Co., Ltd. v. Gissing North America
LLC et al. (Case No. 22-46160) in the U.S. Bankruptcy Court for the
Eastern District of Michigan.
Brian Tobin, Esq., and Steven Susser, Esq., will be the principal
attorneys working on this matter. Mr. Susser's hourly rate is $460
while Mr. Tobin's hourly rate is $390.
Mr. Susser disclosed in a court filing that his firm neither
represents nor holds any interest adverse to the Debtor and its
estate.
The firm can be reached through:
Steven Susser, Esq.
Carlson Gaskey & Olds PC
400 W Maple Rd., Suite 350
Birmingham, MI 48009
Phone: +1 248-988-8360
Email: ssusser@cgolaw.com
About Gissing North America
Gissing North America LLC, formerly known as 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 and its affiliates sought
Chapter 11 protection (Bankr. E.D. Mich. Lead Case No. 22-46160).
At the time of the filing, Gissing North America listed $50 million
to $100 million in both assets and liabilities.
Judge Lisa S. Gretchko oversees the cases.
The Debtors tapped Wolfson Bolton, PLLC as bankruptcy counsel;
Carlson Gaskey & Olds, PC as special counsel; and Livingstone
Partners, LLC as investment banker. Steven R. Wybo of Riveron
Management Services serves as the Debtors' chief restructuring
officer.
GLOBAL ALLIANCE: Wins Cash Collateral Access Thru Sept 15
---------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California
authorized Global Alliance Distributors, Inc. to use cash
collateral on an interim basis in accordance with its stipulation
with Kapitus LLC.
The Debtor is authorized to use receivables and cash collateral to
pay ordinary and necessary operating expenses in accordance with
the terms of the Kapitus Stipulation and the budget, which amends
the budget attached to the Stipulation, on an interim basis through
September 15, 2022.
During the Interim Period, the Debtor must maintain a combined
balance of all bank accounts of not less than $45,000 and is
prohibited from withdrawing funds from its accounts if the
withdrawal would result in a combined balance of less than
$45,000.
During the Interim Period, the Debtor must transfer $500 a week to
Susan K. Seflin, the Subchapter V trustee. The funds must be held
in the trust account of the Subchapter V Trustee pending court
approval of a fee application and authorization to apply the funds
held in trust to any approved fees and costs of the Sub V Trustee.
Kapitus has agreed to subordinate its ownership and security
interests in the funds held in trust by the Subchapter V Trustee to
the Subchapter V Trustee's right to seek authorization to apply the
funds to any court approved fees and costs. Any excess funds held
by the Subchapter V Trustee following final approval of all fees
and costs must be returned to the Debtor and Kapitus' ownership and
security interests in any returned funds will remain intact.
During the Interim Period and upon Court approval of the employment
of Menchaca & Company LLP, the Debtor will transfer $1,000 a month
to Menchaca. The funds will be held in Menchaca's trust account
pending Court approval of a fee application and authorization to
apply the funds held in trust to any approved fees and costs of the
firm. Kapitus also has agreed to subordinate its ownership and
security interests in the funds held in trust by Menchaca to the
firm's right to seek authorization to apply such funds to any Court
approved fees and costs.
As additional adequate protection to other secured parties with an
interest in cash collateral, the parties are granted replacement
liens upon all post-petition assets of the bankruptcy estate, to
the same extent, validity and priority of such parties'
pre-petition liens and security interests in the Debtor's assets.
The replacement liens are deemed duly perfected and recorded under
all applicable laws without the need for any notice or filings. The
grant of replacement liens does not limit the right of parties to
seek additional adequate protection of their interests and will not
be deemed a determination by the Court of the sufficiency of
adequate protection provided to such parties.
A further continued hearing on the matter is scheduled for
September 15 at 11:30 a.m.
A copy of the stipulation is available at https://bit.ly/3ReGDln
from PacerMonitor.com.
A copy of the order is available at https://bit.ly/3TFPKx6 from
PacerMonitor.com.
The budget provides for total income, on a weekly basis, as
follows:
$101,655 for the week ending September 2, 2022;
$116,062 for the week ending September 9, 2022;
$122,792 for the week ending September 16, 2022; and
$105,873 for the week ending September 23, 2022; and
$100,369 for the week ending September 30, 2022.
About Global Alliance Distributors
Founded in 2010, Global Alliance Distributors Inc. operates a
distribution center that distributes primarily Latino books and
magazines to approximately 250 supermarkets throughout California,
Nevada, Arizona and Florida. It also distributes seasonal items,
including, but not limited to, school supplies, sporting goods and
equipment, snacks and candies. The Company also operates a logistic
business that provides cargo deliveries using independent
contractors. Its logistical clients are two major distribution
companies, A&C, which is currently the largest international
magazine distributor in the world, and Sally Beauty Supplies, a
national cosmetics manufacturer.
Global Alliance Distributors Inc. sought Chapter 11 bankruptcy
protection (Bankr. C.D. Cal. Case No. 22-12552) on May 5, 2022. In
the petition filed by Alberto Fabara, as CEO, Global Alliance
estimated assets between $500,000 and $1 million and estimated
liabilities between $1 million and $10 million.
The case is handled by Honorable Bankruptcy Judge Deborah J.
Saltzman.
The Law Offices of Sheila Esmaili serves as the Debtor's counsel.
Menchaca & Company LLP serves as the Debtor's financial advisors
and consultants.
GLORIA JANSEN BURNS: $368K Sale of Santa Maria Property Approved
----------------------------------------------------------------
Judge Martin R. Barash of the U.S. Bankruptcy Court for the Central
District of California authorized Gloria Jansen Burns' sale of the
real property located at located at 135 Regal Drive, in Santa
Maria, California 93454-4641, Santa Barbara County A.P.N.:
121-330-001 to Adriana Thompson and/or assignee for the cash price
of $368,000.
The Debtor is authorized to execute any and all documents as may be
reasonable and necessary to consummate the Sale.
She is authorized to pay directly from escrow all commissions and
closing costs.
She is also authorized to pay directly from escrow the following
obligations secured by the Property:
a. All real property taxes due to the County of Santa Barbara,
to be prorated appropriately;
b. All obligations arising from the deed of trust in favor of
HSBC Bank U.S.A., National Association as Trustee for Deutsche
Alt-B Securities, Mortgage Loan Trust, Series 2007-AB1, and
serviced by Specialized Loan Servicing L.L.C., originally recorded
on Sept. 28, 2006, as document number 2006-0076194, and assigned on
Aug. 17, 2018, as document number 2018-0035149;
c. The tax lien in favor of the State of California, recorded
on Aug. 26, 2020, as document number 2020-0045399, for tax year
2017;
d. All obligations owing to Townhomes East Planned Unit
Development; and
e. Any amounts required to be withheld in favor of the
California Franchise Tax Board.
The Debtor may sell the Property free and clear of the following
obligations secured by the Property pursuant to 11 U.S.C Section
363(f):
a. The tax lien in favor of the State of California, recorded
on June 17, 2021, as document number 2021-0045482, for the tax
period of April 1, 2020, through June 30, 2020; and
b. The tax lien in favor of the State of California, recorded
on Sept. 17, 2021, as document number 2021-0066135, for the tax
period of July 1, 2020, through Sept. 30, 2020.
The 14-day stay provided for in Federal Rule of Bankruptcy
Procedure 6004(h) is waived.
A hearing on the Motion was held on Aug. 25, 2022 at 1:30 p.m.
Gloria Jansen Burns sought Chapter 11 protection (Bankr. C.D. Cal.
Case No. 22-10014) on Jan. 11, 2022. The Debtor tapped Reed
Olmstead, Esq., as counsel.
GOLDEN SPHINX: Chapter 15 Case Summary
--------------------------------------
Chapter 15 Debtor: Golden Sphinx Limited
Suite 3, Burlington House,
St. Saviour's Road
St. Helier JE2 4LA
Jersey
Foreign Proceeding: In the Matter of Golden Sphinx Limited
(creditors' winding up pursuant to
Companies (Jersey) Law 1991)
Chapter 15 Petition Date: August 9, 2022
Court: United States Bankruptcy Court
Central District of California
Case No.: 22-14320
Judge: Hon. Neil W. Bason
Foreign Representatives: Andrew Wood and Alexander Adam
Foreign Representatives'
Counsel: Michael Zorkin, Esq.
THE ZORKIN FIRM
6320 Canoga Ave., 15th Floor
Woodland Hills, CA 91367
Tel: (323) 493-8075
Email: mz@thezorkinfirm.com
Estimated Assets: Unknown
Estimated Liabilities: Unknown
A full-text copy of the Chapter 15 petition is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/FQPUKWQ/Golden_Sphinx_Limited__cacbke-22-14320__0001.0.pdf?mcid=tGE4TAMA
GUARACHI WINE: Has Deal on Cash Collateral Access
-------------------------------------------------
Guarachi Wine Partners, Inc., City National Bank, N.A., and Parker
Station, Inc. advised the U.S. Bankruptcy Court for the Central
District of California, San Fernando Valley Division, that they
have reached an agreement regarding the Debtor's use of cash
collateral and now desire to memorialize the terms of this
agreement into an agreed order.
The parties agree that the Debtor may continue to use cash
collateral through October 31, 2022, pursuant to the budget,
provided that:
(a) as reflected in the Extended Budget, CNB's monthly
adequate protection payment for September 2022 will be increased
from $21,000 to $63,000, with the payment to be applied to CNB's
secured claim,
(b) subject to the Court's approval, which the Debtor will
seek in connection with its motion to approve the auction sale of
certain estate assets, CNB's allowed secured claim will be paid in
full on the close of the auction, which is projected to close on or
about October 13, provided that, to the extent there is any
disagreement between the Debtor and CNB regarding the amount of
CNB's allowed secured claim, the rights, claims, and defenses of
the Debtor and CNB with respect thereto are reserved, and
(c) the Debtor's use of cash collateral under the Extended
Budget will otherwise be subject to the terms of the Final Order,
including, without limitation, the variance, adequate protection
lien, reporting, breach and cure, and termination provisions set
forth in the Final Order.
A copy of the stipulation and the Debtor's budget for September and
October 2022 is available at https://bit.ly/3TDiyWW from
PacerMonitor.com.
The Debtor projects $745,000 in total cash inflows and $631,629 in
total cash outflows for September 2022 and $1,253,000 in total cash
inflows and $735,405 in total cash outflows in October 2022.
About Guarachi Wine Partners
Guarachi Wine Partners Inc. is a wine wholesaler based in
California. It was founded by Alex Guarachi, the sole shareholder,
and has been in business since 1985. Guarachi Wine Partners sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
C.D. Calif. Case No. 22-10545) on May 4, 2022. In the petition
signed by Alejandro Guarachi, president and chief executive
officer, the Debtor disclosed up to $10 million in both assets and
liabilities.
Judge Victoria S. Kaufman oversees the case.
Ron Bender, Esq., at Levene, Neale, Bender, Yoo and Golubchick, LLP
is the Debtor's counsel.
HERITAGE FUNERAL: Continued Operations to Fund Plan Payments
------------------------------------------------------------
Heritage Funeral Home and Cremation Services, LLC, filed with the
U.S. Bankruptcy Court for the Western District of Oklahoma a
Chapter 11 Plan of Reorganization under Subchapter V dated August
30, 2022.
The Debtor is a Limited Liability Company. Since August 6, 2009,
the Debtor has been in the business of Funeral Services and
Cremation.
The Debtor has sought relief because of significant past due tax
liability to the Oklahoma Tax Commission (OTC) in the amount of
$511,549.26. Debtor has initiated an abatement request, but it is
on hold pending obtaining documentation to support the requested
relief.
The Debtor proposed to pay all creditors 100% during the plan with
the exception of the Oklahoma Tax Commission. The Debtor disputes a
May 2015 tax assessment for sales tax in the amount of $446,354.02.
Debtor proposes to pay the disputed amount in payments after the
end of the 5 year period, when all other creditors will be paid
100%. Debtor is seeking an abatement for the disputed amount. If
the abatement is granted in whole or in part, Debtor proposes that
the amount abated be subtracted from the post 5 year period.
The Plan Proponent's financial projections show that the Debtor
will have projected disposable income of $2,200.00. The final Plan
payment is expected to be paid on September 2027.
This Plan of Reorganization proposes to pay creditors of the Debtor
from cash flow from operations and future income.
Non-priority unsecured creditors holding allowed claims will
receive distributions, which the proponent of this Plan has valued
at approximately 100 cents on the dollar. This Plan also provides
for the payment of administrative and priority claims.
Class 3 consists of Non-priority unsecured creditors. Non-priority
unsecured claims, if any, shall be paid within the five year period
in cash.
Class 4 consists of Equity security holders of the Debtor.
Christopher J. Harrison will retain his ownership of the company.
All distributions under this Plan will be provided by the Debtor's
Cash on hand as of the effective date and earned income following
thereafter. The Reorganized Debtor will continue to operate with
the primary purpose of continuing to provide funeral home and
cremation services.
A full-text copy of the Plan of Reorganization dated August 30,
2022, is available at https://bit.ly/3KNwMAv from PacerMonitor.com
at no charge.
Attorney for Debtor:
Christopher A. Wood, Esq.
CHRISTOPHER A. WOOD & ASSOCIATES, P.C
1133 N. Portland Avenue
Oklahoma City, OK 73107
cawlaw@hotmail.com
Tel: (405) 525-5005
Fax: (405) 521-8567
About Heritage Funeral Home
Heritage Funeral Home & Cremation Services has been in the business
of funeral services and cremation since August 6, 2009. The Debtor
filed Chapter 11 Petition (Bankr. W.D. Okla. Case No. 22-11173) on
June 1, 2022.
The Debtor is represented by Christopher Wood of Christopher A.
Wood & Associates, P.C.
HESS MIDSTREAM: Fitch Affirms 'BB+' IDR & Alters Outlook to Stable
------------------------------------------------------------------
Fitch Ratings has affirmed Hess Midstream Operations, LP's (HESM
OpCo) Long-Term Issuer Default Rating (IDR) at 'BB+'. Fitch has
also affirmed the instrument ratings of the first lien secured debt
at 'BBB-'/'RR1' and the senior unsecured debt at 'BB+'/'RR4'. The
Rating Outlook is revised to Stable from Positive.
HESM OpCo's Outlook revision reflects the updated YE 2022 leverage
forecast of 3.0x; and the trends in debt financed share buybacks
which Fitch expects will keep leverage from falling to a point
where Fitch has previously stated an upgrade could occur. HESM OpCo
was previously put on a Positive Outlook due to a similar Outlook
being put in place at Hess Corporation (HES), which provides
substantially all HESM OpCo's revenues. HES remains on Positive
Outlook. The change to Stable Outlook for HESM OpCo reflects
Fitch's view that leverage is the main driver of HESM OpCo's credit
quality.
Other rating drivers include HESM OpCo's highly contracted revenue
profile supported by long-term minimum volume commitments (MVCs)
and concerns around outsized risks faced by a single-basin focused
midstream service providers with high customer concentration.
KEY RATING DRIVERS
Highly Contracted Revenue Profile: In 2022, approximately 95% of
HESM OpCo's revenues are expected to come from MVCs with HES.
Several of the commercial agreements with HES were renewed for a
second term beginning 2024 which will continue through 2033. The
MVCs are based on 80% of HES's nominations, and set in advance on a
three-year rolling basis; and once set, can only be upsized
providing downside protection against volumetric risk. Volume
growth in expected over the forecast period spurred by HES's recent
addition of a fourth rig in July 2022 in the Bakken.
Along with HES's increased production, HES's 2025 greenhouse gas
emissions target to reduce flaring, is expected to drive HESM
OpCo's investments in compression capacity expansion to increase
gas capture and handle additional gas gathering and processing
volumes. HESM OpCo recently completed a compression capacity
expansion by nearly 40%, and has plans for further capacity
expansion over the forecast period. Furthermore, HESM OpCo is
expected to increase its gathering well connects to support the
increase in rig counts by HES.
Relationship with Hess Corporation: HESM OpCo benefits considerably
from its contractual and operational relationship with its primary
counterparty HES. Substantially all of the company's revenue is
driven by fee-based agreements with HES, including third-party
volumes contracted with subsidiaries of HES which guarantees the
obligations of their subsidiaries. Post the most recent share
buyback completed in April 2022, HES owns roughly 41% of HESM OpCo.
HESM OpCo's ratings reflect its standalone credit profile, but its
ratings are linked with HES as the primary counterparty. Given that
agreements with HES drives nearly all of HESM OpCo's revenue, a
negative business impact at HES could lead to a negative impact to
HESM OpCo's business.
Disciplined Leverage Profile: HESM OpCo has maintained stable low
leverage (total debt with Equity credit/operating EBITDA) compared
to its midstream peers. In 2021, leverage was approximately 2.8x;
however, with debt funded share buyback in April 2022, the LTM 2Q22
leverage was around 3.2x. With nearly 95% of the company's revenues
underpinned by long-term MVCs, annual fee recalculation with
inflation escalators and expected production growth at HES, Fitch
expects the company to be able to maintain its leverage target.
Fitch expects the company to maintain leverage near managements
stated target of 3.0x in 2022.
Fitch's expectations for HESM OpCo's EBITDA growth is a positive
factor underlying the credibility of management's 3.0x leverage
target. However, given the series of recent debt funded sponsor
share buybacks, Fitch anticipates these transactions will continue
to occur over the forecast period if leverage falls below the 3.0x
level and no significant expansions or acquisitions are
identified.
Limited Geographic Diversification: Substantially all of the
company's assets are concentrated in the Bakken and Three Forks
shale plays in the Williston Basin area of North Dakota
collectively referred as Bakken. Therefore, HESM OpCo retains an
outsized exposure to shifting dynamics in the North American oil
and gas production landscape that may disproportionately impact the
Bakken, compared to other midstream companies with exposure to
multiple production basin. The long-term MVCs with HES does provide
downside revenue protection, however, a substantial production
decreases in the region, could impede the company's revenue growth
if throughput volumes are consistently below MVCs.
Two-Fold Revenue Protection: HESM OpCo is a 100% fee-based
business. Its fixed fees are subject to annual recalculation based
on the company maintaining its targeted return on capital through
the end of 2023 and longer for the terminal, export and water
agreements. The rate calculation also incorporates the production
profile of HES. Several of the commercial agreements with HES were
extended for a second term beginning 2024. The rates for the second
term will be subject to annual recalculation based on an average
rate for the past three years and an inflation escalator. The
fixed-fees based business mitigates the impact of commodity price
volatility on earnings.
In addition to the annual fee recalculation structure, the
contracts provide near-term revenue stability bolstered by MVCs.
MVCs are set annually on a three-year rolling basis. MVCs are
established each year for the current year and the two thereafter;
and once set, cannot be downsized. HES, as HESM OpCo's
counterparty, will bear high effective unit costs in a downside
volume scenario because of the two revenue protection mechanisms.
In the company's 2021 10-K, it was disclosed that in the year 2021,
minimum volume shortfall fee payments were $87 million which was
approximately 7% of the total revenue of $1.2 billion.
DERIVATION SUMMARY
Substantially all of HESM OpCo's revenues comes from commercial
agreements with HES in the Bakken; as such, the company has high
customer concentration and single basin exposure. On this basis,
EQM Midstream Partners, LP (EQM; BB/Negative) is a peer comparable
for HESM OpCo. Nearly 60% of EQM's revenues in 2021 were derived
from a single counterparty i.e. EQT Corporation (EQT; BBB-/Stable).
Majority of EQT's business is focused in the Appalachian basin.
EQM has a much larger operational scale with 2021 EBITDA (fitch
adjusted) of roughly $1.45 billion vs. $912 million for HESM OpCo.
However, HESM OpCo has much lower leverage compared to EQM. In
2021, HESM OpCo's leverage was roughly 2.8x which was significantly
lower compared to EQM's leverage for 2021. For the year 2022, Fitch
expects HESM OpCo's leverage to be around 3.0x in 2022, which is
lower than the expectations for EQM of approximately between
5.1x-5.3x in 2022.
Furthermore, EQM's Mountain Valley Pipeline project is currently
encountering large schedule delays and cost overruns due to
permitting and environmental challenges. HESM OpCo's lower leverage
and lack of project execution overhang offsets EQM's greater
operational scale. Hence, HESM OpCo is rated one-notch higher than
EQM.
EnLink Midstream, LLC (ENLC; BB+/Positive) is a comparable for HESM
OpCo within the same rating category. ENLC compared to HESM OpCo,
has slightly larger operational scale and greater geographic
diversification with assets located in the Permian, Barnett, and
Oklahoma (STACK Play). However, it has significantly higher
leverage vs. HESM OpCo. ENLC's 2021 leverage was approximately
4.8x, and Fitch expects the 2022 leverage to be around 4.4x. HESM
OpCo's significantly lower leverage offsets ENLC's slightly larger
operational scale and geographic diversification, leading to the
same ratings.
KEY ASSUMPTIONS
-- Fitch's base case natural gas prices at Henry Hub of
$6.25/mcf, $4/mcf, $3.25/mcf, and $2.75/mcf in 2022, 2023,
2024 and 2025 and beyond respectively;
-- Throughput volumes across gathering, processing and
terminaling segments to be lower than MVCs in 2022, increasing
over the currently set MVCs for the year 2023 and 2024;
-- Throughput volumes consistent with Fitch's expectations for
oil and gas production at HES in the Bakken;
-- Maintaining dividend growth of 5% per year;
-- Stable maintenance capital consistent with prior years; and
growth capital based on expansion of compression capabilities
and well connects consistent with HES's development plans;
-- Incremental debt funded sponsor share repurchase transaction
over the forecast period;
-- Fitch's base case WTI prices of $100/bbl in 2022, $81/bbl in
2023, $62/bbl in 2024, and $50/bbl in 2025 and beyond.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Leverage sustained below 3.0x on a sustained basis in the
context of HESM OpCo maintaining its current size;
-- A significant acquisition that diversifies the company's
business risk, provided that leverage stays below 4.5x,
although this may vary, depending on the risk profile of the
acquisition.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Negative rating action at primary counterparty HES;
-- Adverse changes in certain terms in the array of contracts
with HES;
-- Leverage rising above 4.0x on a sustained basis in the context
of HESM OpCo maintaining its current size.
LIQUIDITY AND DEBT STRUCTURE
Adequate Liquidity: As of June 30, 2022, the company had
approximately $911 million of liquidity. HESM OpCo had roughly $2
million of cash on the balance sheet and $909 million available on
its revolving credit facility with no letters of credit
outstanding. The revolver has a maximum limit of $1 billion and
matures on July 14, 2027.
Financial covenants on the secured credit facilities permit a
maximum funded debt-to-EBITDA ratio of 5.0x (as defined in the
credit facilities) for the prior four quarters, expanding
temporarily to 5.5x in the event of certain acquisitions. As of
June 30, 2022, the company was in compliance with these financial
covenants.
ISSUER PROFILE
HESM OpCo is a fee-based gathering- and processing-focused
midstream company with assets concentrated in the Bakken shale
region in North Dakota. HES has dedicated nearly all its existing
and future owned or controlled production in the Bakken under
long-term fee-based agreements supported by MVCs. HESM OpCo offers
natural gas gathering and compression, oil gathering, and produced
water gathering and disposal. Processing facilities include the
Tioga Gas Plant and JV interest in LM4. HESM OpCo also offers crude
oil and NGL terminaling and export facilities.
SUMMARY OF FINANCIAL ADJUSTMENTS
Fitch typically calculates midstream energy issuers' leverage by
using an EBITDA figure that excludes earnings from equity
investments and adding in distributions from equity investments.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING
The principal sources of information used in the analysis are
described in the Applicable Criteria.
PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS
Ratings for HESM OpCo are influenced by the ratings of the primary
counterparty HES.
ESG CONSIDERATIONS
Hess Midstream Operations, LP (HESM OpCo) has an ESG Relevance
Score of '4' for Group Structure due to the somewhat complex group
structure HESM OpCo operates under with exposure to financial
issues arising elsewhere in the group, which has a negative impact
on the credit profile, and is relevant to the ratings in
conjunction with other factors.
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
Rating Prior
------ -----
Hess Midstream
Operations LP
LT IDR BB+ Affirmed BB+
senior unsecured LT BB+ Affirmed RR4 BB+
senior secured LT BBB- Affirmed RR1 BBB-
HOME DEALS OF MAINE: Taps Tyra-Marie Mitchell as Real Estate Broker
-------------------------------------------------------------------
Home Deals of Maine, LLC received approval from the U.S. Bankruptcy
Court for the District of Maine to hire Tyra-Marie Mitchell, a real
estate broker at Northstar Realty, to market for sale its real
property located at 41 Carey Lane, Waterville, Maine.
Ms. Mitchell will receive a commission equal to 5 percent of the
sales price.
In court papers, Ms. Mitchell disclosed that she is a
"disinterested person" within the meaning of Section 101(14) of the
Bankruptcy Code.
Ms. Mitchell can be reached at:
Tyra-Marie Mitchell
Northstar Realty
200 US Route 1, Suite 210
Phone: 1-207-229-9515
Fax: 1-866-702-3993
Email: Tyra@NorthStarRealty.ME
About Home Deals of Maine
Home Deals of Maine, LLC owns 14 rental properties in Maine, with a
total current value of $2.7 million. The company is based in
Waterville, Maine.
Home Deals of Maine filed a petition for Chapter 11 protection
(Bankr. D. Maine Case No. 21-10267) on Oct. 6, 2021, listing
$3,147,975 in assets and $1,650,258 in liabilities. Jo A. Roderick,
sole member, signed the petition.
Judge Peter G. Cary oversees the case.
The Debtor tapped James F. Molleur, Esq., at Molleur Law Office as
bankruptcy counsel, and Thomas Cox, Esq., a practicing attorney in
Portland, Maine, as special counsel.
HONX INC: Future Claimants' Rep Taps NERA Economic as Consultant
----------------------------------------------------------------
Barbara Houser, a retired judge and legal representative for future
asbestos claimants in Honx, Inc.'s Chapter 11 case, received
approval from the U.S. Bankruptcy Court for the Southern District
of Texas to employ NERA Economic Consulting as her consultant.
The firm's services include:
(a) advising the future claimants' representative on matters
involving present and future asbestos-related personal injury
claims against the Debtor;
(b) estimating the number and value of, and providing any
analysis with respect to, present and future asbestos-related
personal injury claims against the Debtor;
(c) assisting the future claimants' representative in
negotiations with various parties regarding the Debtor's
asbestos-related liability;
(d) performing due diligence regarding the Debtor's current,
potential and overall asbestos-related liability;
(e) assisting in the prosecution of future claimants'
representative positions, including providing expert reports and
testimony; and
(f) rendering other necessary advisory services.
The hourly rates for NERA professionals range from $250 for
analysts to $1,500 for directors.
In addition, the firm will receive reimbursement for work-related
expenses.
As disclosed in court filings, NERA is a "disinterested person"
within the meaning of Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Stephanie Plancich
NERA Economic Consulting
1166 Avenue of the Americas
New York, NY 10036
Tel: +1 212 345 7719
Fax: +1 212 345 4650
Email: stephanie.plancich@nera.com
About Honx Inc.
Honx Inc. is a subsidiary of Hess Corporation, a publicly-traded
global energy company. HONX is the corporate successor of Hess Oil
Virgin Islands Corporation, which owned and operated an oil
refinery in St. Croix, U.S. Virgin Islands from the beginning of
its construction in 1965 until a non-operating entity with minimal
assets consisting primarily of a 50% ownership in a joint venture
from 1998 to 2016, and post-2016 it has continued its corporate
existence solely to manage its alleged asbestos liabilities related
to the refinery.
Honx sought Chapter 11 bankruptcy protection (Bankr. S.D. Texas
Case No. 22-90035) on April 28, 2022. In the petition signed by
Todd R. Snyder, chief administrative officer, the Debtor disclosed
$10 million to $50 million in assets and $500 million to $1 billion
in liabilities.
Judge Marvin Isgur oversees the case.
The Debtor tapped Kirkland & Ellis and Jackson Walker, LLP as
bankruptcy counsels; Piper Sandler Companies/TRS Advisors, LLC as
investment banker and financial advisor; and Bates White, LLC as
asbestos consultant. Stretto, Inc. is the claims, noticing and
solicitation agent.
The Honorable Barbara J. Houser (Ret.) was appointed as the legal
representative for future asbestos claimants in this Chapter 11
case. Ms. Houser tapped Young Conaway Stargatt & Taylor, LLP as
bankruptcy counsel; O'ConnorWechsler, PLLC as local counsel; FTI
Consulting, Inc. as financial advisor; and NERA Economic Consulting
as consultant.
HOUSTON AMERICAN: Provides Update on Operations in Colombia
-----------------------------------------------------------
Houston American Energy Corp. provided an update with respect to
2022 operations and near term plans on the CPO-11 Block in
Colombia. Houston American's interest in the CPO-11 Block, and
wells thereon, is held through its ownership interest in Hupecol
Meta, LLC.
Year-to-date, two wells have been drilled on the CPO-11 Block, both
located in the Venus Exploration Area. The Bugalo #1 well was
drilled and is awaiting testing. The Saturno #1 well was drilled,
plugged back and side-tracked resulting in the Saturno #1ST well.
The Saturno #1ST well is expected to begin production in the very
near future. A formerly shut-in well in the VEA, the Venus 2A, is
planned to be returned to production shortly.
Hupecol is planning to acquire a 3D seismic grid covering a portion
of the VEA with the objective of siting and drilling a first
horizontal well within the VEA.
On the CPO-11 Block, outside of the VEA, Hupecol Meta has targeted
drilling, by year-end, the Caonabo well with the participation of
Parex Resources.
Houston American owns an 11% interest in each of the wells in the
Venus Exploration Area and will own a 5.5% interest in each of the
wells on the balance of the CPO-11 Block.
John Terwilliger, CEO of Houston American, stated "We are pleased
to have commenced operations on the CPO-11 Block and the progress
to date and look forward to further development of the Venus
Exploration Area and larger block."
About Houston American Energy
Based in Houston, Texas, Houston American Energy Corp. is a
publicly-traded independent energy company with interests in oil
and natural gas wells, minerals and prospects. The company's
business strategy includes a property mix of producing and
non-producing assets with a focus on the Permian Basin in Texas,
Louisiana and Columbia.
Houston American reported a net loss of $2.51 million for the year
ended Dec. 31, 2019, and a net loss of $4.04 million for the year
ended Dec. 31, 2018. As of June 30, 2021, the Company had $11.15
million in total assets, $443,622 in total liabilities, and $10.71
million in total shareholders' equity.
HYPER FUSION: Seeks Cash Collateral Access
------------------------------------------
Hyper Fusion, LLC asks the U.S. Bankruptcy Court for the Western
District of Texas, Austin Division, for authority to use cash
collateral in the continuing operation of its business.
It is critical for the Debtor to have access to its cash and other
business property to continue to operate in the ordinary course of
business and to pay normal operating expenses.
The Debtor has a single secured creditor. John Newell is owed
approximately $10,000 secured by a blanket lien on the Debtor's
assets. The monthly payments to Mr. Newell are $350.
The Debtor's three principals are the only employees. They have
agreed to reduce their monthly compensation from $7,000 to $4,000
per month and to forego any pre-petition wages.
The Debtor borrowed money from a number of individuals to finance
its business. When the Debtor was not able to pay back such
short-term notes, creditors began threatening legal action. One
creditor has filed two suits in Justice of the Peace Court.
As adequate protection, the Debtor proposes to provide adequate
protection to the parties with an interest in cash collateral in
the following manner:
a. The Debtor will provide all creditors with an interest in
cash collateral with a replacement lien upon assets obtained
post-petition to the same extent, priority and validity as their
pre-petition liens.
b. The Debtor will provide for adequate protection payments
during the pendency of the case to Mr. Newell by continuing the
amount of his regular payments.
A copy of the motion and the Debtor's monthly budget is available
at https://bit.ly/3Ba6UeJ from PacerMonitor.com.
About HyperFusion, LLC
HyperFusion, LLC operates a rural internet service provider in
Burnet County, Texas. It has approximately 230 customers.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Tex. Case No. 22-10569-hcm) on
September 2, 2022. In the petition signed by Christopher Miska,
manager, the Debtor disclosed up to $100,000 in assets and up to
$500,000 in liabilities.
Stephen W Sather, Esq., at Barron & Newburger, P.C. is the Debtor's
counsel.
ICU MEDICAL: Fitch Alters Outlook on 'BB' IDR to Negative
---------------------------------------------------------
Fitch Ratings has affirmed ICU Medical, Inc.'s Long-Term Issuer
Default Rating (IDR) at 'BB'. The Rating Outlook has been revised
to Negative from Stable. Fitch has also affirmed the rating of the
senior secured term loan B at 'BBB-'/'RR1'.
The Negative Outlook reflects the unfavorable macroenvironment and
operational issues at the recently acquired Smiths Medical, both of
which have proven to be a drag on revenue and profit. Although ICU
Medical has proactively taken actions to remediate its internal
issues, the company has little to no control of the external
factors, which if prolonged, could further deteriorate its credit
profile. Fitch expects leverage will remain above the 3.5x-4x range
the 'BB' rating considers until 2024 and further deteriorations in
the timing or likelihood of improvements could result in a
downgrade.
The affirmation reflects ICU Medical's top three position in the
infusion therapy market, significant portion of recurring revenues
and the essentiality of its products in patient care. While ICU
Medical is benefited from international operations and
manufacturing sites, the company is heavily relied on the U.S.
market and less diversified in term of product offerings than its
peers.
KEY RATING DRIVERS
A Pure-Play Infusion Therapy Company: Compared to its larger and
more diversified peers, ICU Medical is a niche company that focuses
on the infusion therapy market. It develops, manufactures and sells
IV solutions, IV infusion pumps and software, and dedicated and
non-dedicated IV sets and accessories. The majority of ICU
Medical's revenue is derived from products that have top three
market positions and from single-use solutions and consumables.
In Fitch's opinion, the acquisition of Smiths Medical will allow
ICU Medical to capture segments within the infusion therapy market
that it may not have strong positions in (i.e. syringe and
ambulatory pumps, and vascular access products). Other benefits
include higher contribution from recurring revenue (approximately
85% of total revenue), smaller contribution from the U.S. market
(approximately 60%), and stronger presence in EMEA and Asia-Pacific
regions.
Segments Underperforming to Differing Degrees: In the 1H22, the
legacy ICU Medical's performance was in-line with Fitch's
expectation as hospital census began to normalize post January 2022
after the Delta and Omicron surges. With the public hospitals
reporting less than 3% of total admissions in 2Q22 were COVID
patients, Fitch assumes that operations will return to a more
stable, predictable manner, and expects this business unit to
generate more than $700 million of revenue in the 2H22. However,
Fitch notes that operational challenges remain due to raw material
shortages, slower-than-expected recovery in international markets,
inflation and a stronger U.S. dollar.
Meanwhile, the legacy Smiths Medical's performance materially
underperformed Fitch's expectations and prior performance due to
production and fulfilment issues at Smiths Medical's facilities,
all of which were recognized and discussed pre-acquisition but
exacerbated by unfavorable macro-environment. Fitch expects that
performance will continue to remain below historical levels by
20%-25% in the next 12-18 months, and only sees modest improvement
in the beginning of the 2H23.
Issues at Smiths Medical Persist: Fitch understands that the
ongoing production and fulfilment issues stem from a long period of
underinvestment. Although ICU Medical has proactively taken actions
to remediate such issues and made tactical decisions to navigate
the current environment, execution risk, in Fitch's opinion,
remains high. Fitch believes that ICU Medical's decision to stop
sales of older-generation Medfusion syringe pumps makes strategic
sense, allowing the company to focus on fixing and improving the
software of its newer-generation infusion systems and freeing up
capacity for new products in upcoming years.
Fitch also believes that increased spending in the short term to
secure supply of raw materials and staffing levels and to get
products to customers in a more effective manner will benefit ICU
Medical in the medium term. However, Fitch notes that increases in
spending should be accompanied by an appropriate level of increases
in profitability, and without the latter, ICU Medical's credit
profile could deteriorate and could be sustained below Fitch's
negative sensitivities.
Macroenvironment Remains Challenging: Unfavorable operating
environment, combined with the above issues at Smiths Medical,
contributed to a 400 bps and 200 bps reduction in gross and EBITDA
margins, respectively, in the 1H22 in comparison to Fitch's prior
expectations. Although the conditions have improved sequentially
(i.e. easing raw material shortages and supply chain issues), the
operating environment remains challenging.
Elevated Execution Risk: Fitch expects ICU Medical's profit level
will be constrained in the next 18-24 months, with EBITDA margin
sustained in the 15%-16% range in 2022. Fitch further expects ICU
Medical to generate negative FCF in the range of $180 million-$200
million in 2022, and only sees positive FCF generation in the 2H23
and thereafter. However, Fitch believes that liquidity, which
includes $256 million of cash on hand and $500 million of undrawn
revolver (as of June 30, 2022), remains sufficient as the company
continues to navigate both external and internal issues.
Leverage, measured by total debt/EBITDA, is projected to maintain
in the 4.5x-5.0x range in 2022 and 2023, but return to below 4.0x
post 2023, a level commensurate with the 'BB' rating. Fitch has
assumed that ICU Medical will maintain its current financial
policy, and has not assumed that the company will direct FCF
towards voluntary debt repayments.
DERIVATION SUMMARY
ICU Medical's 'BB' rating reflects its top three position in the
infusion therapy market, significant portion of recurring revenue,
and the essentiality of its products in patient care. While the
company is benefited from international operations and
manufacturing sites, it is heavily relied on the U.S. market and
somewhat less diversified in terms of product offerings than its
peers.
ICU Medical's peers have more geographical and product
diversification, larger operations, higher level of profitability
and somewhat similar or lower leverage. Baxter International (BBB)
historically maintained a conservative capital structure, but the
acquisition of Hill-Rom has significantly pushed leverage beyond
historical levels.
Becton, Dickinson & Company (BBB) and Boston Scientific (BBB) both
have broad medical device and product portfolios that enable them
to remain very competitive in domestic and international markets.
The former has shown willingness to deleverage after the C.R. Bard
acquisition in late 2017. B. Braun, a direct competitor of ICU
Medical and not rated by Fitch, is a well-known German healthcare
company and a leader in infusion therapy and pain management in
Europe.
KEY ASSUMPTIONS
-- Low-single digit revenue growth for the legacy ICU Medical
business unit; revenue from the legacy Smiths Medical business
unit 20%-25% below historical levels in 2022 and 2023, with
modest improvement thereafter;
-- EBITDA margin in the 15.0%-16.0% range in 2022, and sustained
in the 16.0%-18.0% post 2022;
-- CAPEX of $100 million in 2022, and $140 million-$150 million
per year post 2022;
-- Negative to neutral FCF in 2022 and 2023, and positive FCF of
$100 million - $200 million per year thereafter;
-- Total Debt/EBITDA sustained in the 4.5x-5.0x range in 2022 and
2023, but maintained below 4.0x post 2023; and
-- No allocation of discretionary FCF towards voluntary debt
repayments, acquisitions.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Fitch's expectation of modest impact from inflation and supply
chain issues and/or significant synergies realized from Smiths
Medical that lead to EBITDA and FCF margins sustained above
23% and 8%, respectively;
-- Fitch's expectation that total debt/EBITDA will be maintained
below 3.0x; and
-- Fitch's expectation that (CFO-capex)/total debt will be
sustained above 15%.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Fitch's expectation of significant impact from inflation and
supply chain issues and/or declining growth prospects that
lead to EBITDA and FCF margins sustained below 18% and 6%,
respectively;
-- Fitch's expectation that total debt/EBITDA will be maintained
above 4.0x; and
-- Fitch's expectation that (CFO-capex)/total debt will be
sustained below 10%.
LIQUIDITY AND DEBT STRUCTURE
Sufficient Liquidity: Sources of liquidity include $256 million of
cash on hand and $500 million of undrawn revolver as of June 30,
2022. Fitch estimates that ICU Medical generated negative FCF of
$116 million for the first six months of 2022, or -10.5% of
revenue, and expects ICU Medical to post negative FCF in the range
of $180 million-$200 million for 2022. Although ICU Medical's
profitability will be constrained in the next couple of years,
Fitch believes that liquidity remains sufficient to support
day-to-day operations, and does not see the need for additional
capital.
Debt Maturities: The senior secured revolver and term loan A mature
in January 2027, and the senior secured term loan B matures in
January 2029. Term loan amortization is $4 million for the
remainder of 2022, $30 million in 2023, and $51 million in 2024 and
2025.
Recovery Assumptions
Fitch applies a generic approach to rate and assign RRs to
instruments for issuers rated 'BB-' or above. ICU Medical, Inc.'s
first liens security on its senior secured term loan are considered
Category 1 first liens as they are not contractually, structurally
or practically junior to ABL facilities and warrant a 'BBB-'/'RR1',
two notches above the IDR.
ISSUER PROFILE
ICU Medical, Inc., based in San Clemente, CA, is an infusion
therapy company that develops, manufacturers, and sells medical
devices and products used in vascular therapy, critical care, and
oncology applications.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
INSPIREMD INC: Two Proposals Passed at Annual Meeting
-----------------------------------------------------
InspireMD, Inc. held its 2022 annual meeting of stockholders on
Aug. 31, 2022, at which the stockholders:
(1) re-elected Michael Berman to serve on the Board of
Directors, as a Class 2 director, for a term of three years or
until his successor is elected and qualified; and
(2) ratified the appointment of Kesselman & Kesselman, a member
of PricewaterhouseCoopers International Limited, as the Company's
independent registered public accounting firm for the 2022 fiscal
year.
About InspireMD
Headquartered in Tel Aviv, Israel, InspireMD, Inc. --
http://www.inspiremd.com-- is a medical device company focusing
on
the development and commercialization of its proprietary MicroNet
stent platform technology for the treatment of complex vascular and
coronary disease. A stent is an expandable "scaffold-like" device,
usually constructed of a metallic material, that is inserted into
an artery to expand the inside passage and improve blood flow. Its
MicroNet, a micron mesh sleeve, is wrapped over a stent to provide
embolic protection in stenting procedures.
InspireMD reported a net loss of $14.92 million for the year ended
Dec. 31, 2021, a net loss of $10.54 million for the year ended Dec.
31, 2020, a net loss of $10.04 million for the year ended Dec. 31,
2019, and a net loss of $7.24 million for the year ended Dec. 31,
2018. As of June 30, 2022, the Company had $32.77 million in total
assets, $7.02 million in total liabilities, and $25.74 million in
total equity.
INTELLIGENT SURVEILLANCE: Spotlight App Agrees to Defer Payments
----------------------------------------------------------------
Intelligent Surveillance Corporation submitted a Modified Second
Amended Plan of Reorganization under Subchapter V dated August 30,
2022.
The Debtor will reorganize and emerge from bankruptcy as a going
concern business and there will be a Distribution Agent appointed
at confirmation. The Distribution Agent will receive funds from the
Reorganized Debtor and from The Spotlight App, LLC, and will
distribute the funds to the Debtor's creditors pursuant to the
terms of this Plan.
The Distribution Agent will receive the Debtor's net disposable
income for the earlier of (i) five years following the Effective
Date, and (ii) until such time that all such creditor claims are
satisfied in full.
The Distribution Agent will also receive the Spotlight Deferred
Payments and the Spotlight Excess Cash Payment. The Distribution
Agent will use the funds collected to make distributions to allowed
creditor claims in accordance with the Distribution Waterfall and
to pay the Distribution Agent's fees and administrative costs.
The Debtor and Spotlight will enter into agreements to provide that
Spotlight will defer and subordinate the payments due from the
Debtor, the Spotlight Deferred Payments, so that such funds can
instead be provided to the Distribution Agent for the benefit and
payment of the Debtor's creditors under the Plan. The Spotlight
Deferred Payments are expected to result in excess of $1.3 million
in payments to the Distribution Agent over a five-year period.
In addition to the Spotlight Deferred Payments, Spotlight has also
agreed to provide the Distribution Agent with 50% of available cash
in Spotlight above $250,000 for the second through the fifth year
following the Effective Date, the Spotlight Excess Cash Payment. As
part of the consideration for Spotlight to provide the Deferred
Cash Payments and the Excess Cash Payments, which will allow the
Debtor to accelerate the repayment of its creditors, the Debtor
will release in full any claims it has against Spotlight, David
Buschhorn, and Stephanie Buschhorn.
Allowed Secured Claims are Claims secured by property of the
Debtor's bankruptcy estate. There are two secured claims, that of
CNC Associates, which has a purchase money lien on certain
equipment associated with the Debtor's purchase of that equipment
from CNC Associates, and the United States Small Business
Administration, which has a lien securing its Economic Injury
Disaster Loan. The SBA DIP Loan will be treated as a secured claim
under the Plan. The loan will be paid in accordance with the terms
and conditions of the Amended Note dated May 8, 2022 but modified
so that the monthly payments begin in the month following the
Effective Date.
Critical Trade Vendor Claims are the claims of five creditors,
Dekra, Thales (f/k/a Gemalto), Wipro, Taoglas, and ProtoLabs, from
which Debtor needs to continue to obtain certain services critical
to performing new camera sales and service shortly after
confirmation of the plan. During the gap period between the
Petition Date of June 11, 2021 and the order for relief on April 4,
2022, the Debtor negotiated compromise payment arrangements for
sums owed to these critical trade vendors. These claims will be
paid by affirming the compromise payment arrangements negotiated
before the order of relief with payments to resume upon
confirmation.
General unsecured Claims are not secured by property of the estate.
General Unsecured Claims are unsecured claims that are neither
Priority Unsecured Claims, Critical Trade Vendor Claims nor Insider
Claims. The General Unsecured Claims will be paid in accordance
with the Distribution Waterfall and other terms of the Plan.
Insider claims are unsecured claims held by insiders of the Debtor
against the Debtor. The Insider Claims shall be subordinate to the
General Unsecured Claims and will be paid in accordance with the
Distribution Waterfall and other terms of the Plan. The Debtor will
seek to have the Bankruptcy Court make findings in connection with
the confirmation hearing that the foregoing parties are insiders if
there is any dispute with respect to this designation.
On the confirmation of the Plan, the Debtor and Spotlight will
enter into (i) an amended and restated Software As A Service
Agreement that will supersede that certain Memorandum of
Understanding dated effective August 31, 2021 in the form attached
hereto as Exhibit B (the "Software As A Service Agreement"), (ii) a
Payment and Release Agreement (the "Payment and Release
Agreement"), and (iii) the Exit Financing Facility.
On Confirmation of the Plan, all property of the Debtor, tangible
and intangible, including, without limitation, licenses, furniture,
fixtures and equipment, will revert, free and clear of all Claims
and Equitable Interests except as provided in the Plan, to the
Reorganized Debtor. The Debtor expects to have sufficient cash on
hand to make the payments required on the Effective Date. The Board
of Directors of the Debtor immediately prior to the Effective Date
shall serve as the initial Board of Directors of the Reorganized
Debtor on and after the Effective Date. Each member of the Board of
Directors shall serve in accordance with applicable non-bankruptcy
law and the Debtor's certificate or articles of incorporation and
bylaws, as each of the same may be amended from time to time.
This will be a pot plan with the Distribution Agent receiving (i)
the Reorganized Debtor's net disposable income for up to five years
following the Effective Date, (ii) the Spotlight Deferred Payments
for up to the second through fifth year following the Effective
Date, and (iii) the Spotlight Excess Cash Payment for up to five
years following the Effective Date.
A full-text copy of the Modified Second Amended Plan dated August
30, 2022, is available at https://bit.ly/3QgCaxb from
PacerMonitor.com at no charge.
Counsel for Debtor:
Kenneth C. Johnston
Catherine (Kate) Gaither
Sean M. Affleck
Kenneth R. Flottman
JOHNSTON CLEM GIFFORD PLLC
1717 Main Street, Suite 3000
Dallas, Texas 75201
Tel. (214) 974-8000
Fax (972) 474-1750
Email: kjohnston@johnstonclem.com
Email: kgaither@johnstonclem.com
Email: saffleck@johnstonclem.com
Email: kflottman@johnstonclem.com
About Intelligent Surveillance
Intelligent Surveillance Corporation is a Texas Corporation. It
manufactures surveillance equipment primarily utilized by state and
federal law enforcement agencies and first responders, including
the Department of Homeland Security and U.S. Customs and Border
Protection.
On June 11, 2021, four of Debtor's creditors filed an involuntary
Chapter 7 petition against the Debtor in Dallas, Texas (Bankr. N.D.
Tex. Case No. 21-31096).
On July 6, 2021, Debtor moved to dismiss based on the petitioning
creditors' lack of standing and bad faith. On September 17, 2021,
the Bankruptcy Court held that three of the petitioning creditors
lacked standing, but provisionally denied the motion to dismiss
pending a determination of the number of Debtor's creditors.
On Oct. 8, 2021, three new petitioning creditors joined the
involuntary petition. On Dec. 10, 2021, the Bankruptcy Court held
that a sufficient number of petitioning creditors existed to
sustain the involuntary petition, as amended.
On March 30, 2022, the Bankruptcy Court held a hearing to determine
whether Debtor was generally paying its debts as they came due on
the involuntary petition date.
On April 4, 2022, the Bankruptcy Court entered an order for relief
under Chapter 7 of the Bankruptcy Code.
On April 21, 2021, the Bankruptcy Court granted a motion to convert
Debtor's case to a case under Chapter 11, Subchapter V of the
Bankruptcy Code.
Counsel to the Debtor-in-Possession:
Kenneth C. Johnston
Catherine (Kate) Gaither
Sean M. Affleck
Kenneth R. Flottman
JOHNSTON CLEM GIFFORD PLLC
1717 Main Street, Suite 3000
Dallas, Texas 75201
Tel: (214) 974-8000
Fax: (972) 474-1750
E-mail: kjohnston@johnstonclem.com
E-mail: kgaither@johnstonclem.com
E-mail: saffleck@johnstonclem.com
E-mail: kflottman@johnstonclem.com
IRONWOOD FINANCIAL: Wins Cash Collateral Access Thru Oct 25
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Mississippi
authorized Ironwood Financial, LLC to continue using cash
collateral on an interim basis, pursuant to the budget, through
October 25, 2022.
The Court said the amounts reflected on the budget do not change
from month-to-month, so even though the dates on the budget are for
prior months, the same amounts will roll over to the months
approved in the Order. This budget is consistent with all prior
budgets previously approved by the Court.
Specifically, Worldpay ISO, Inc., f/k/a Vantiv, Inc., f/k/a
National Processing Company, is directed to release $122,000 of any
residual payments to the Debtor in the ordinary course of
Worldpay's business after ascertaining the amount of the residual
payments in accordance with the terms of the underlying agreement
between the Debtor and Worldpay provided that the total amount of
the residual payment due to the Debtor for the applicable period is
at least $122,000.
A further telephonic hearing on the matter is scheduled for October
25 at 10 a.m. Objections are due October 11.
A copy of the order and the Debtor's budget is available at
https://bit.ly/3TH2PWU from PacerMonitor.com.
The Debtor projects $72,276 in total monthly expenses.
About Ironwood Financial
Oxford, Miss.-based Ironwood Financial, LLC sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. N.D. Miss. Case No.
21-10866) on May 3, 2021. In the petition signed by John H. Lewis,
manager, the Debtor disclosed up to $10 million in assets and up to
$50 million in liabilities.
Judge Jason D. Woodard oversees the case.
Mitchell, McNutt & Sams, P.A. serves the Debtor's legal counsel.
J MORALES INC: Seeks Chapter 11 Bankruptcy Protection
-----------------------------------------------------
J Morales Inc. filed for chapter 11 protection in the District of
Nevada. The Debtor has elected to be treated under Subchapter V of
chapter 11 of the Bankruptcy Code.
The Debtor is owned and controlled by Jose Morales, who is a native
of Guanajuato, Mexico, but has been a United States citizen since
2004. The Debtor owns and operates two businesses. First, since
2006, the Debtor has owned and operated an El Nopal Mexican Grill
#2 restaurant, which operates out of leased space located at 4200
W. Russell Rd., Suite 115, Las Vegas, Nevada, 89118. Second, since
2017, the Debtor has owned real property located at 3977 Vegas
Valley Drive, Las Vegas, Nevada 89121, which includes an
approximately 10,000 square foot building, and in which it has most
recently operated the Le Caprice Banquet Hall, which host events
such as wedding receptions and quinceañeras.
For the first six months of 2022, the Debtor's businesses have
grossed modest profits. Specifically, from January through June
2022, the Restaurant's gross profits were $48,009, and the Banquet
Hall's gross profits were $5,674. After accounting for operating
expenses, however, both Businesses have showed net losses for this
time period. As a result,
from time-to-time Mr. Morales has infused money into J Morales in
order to sustain its operations and because he believes the future
prospects of its Businesses are very good, especially once the
Property's repairs are completed and the balance of the Property
can be utilized or leased out to generate additional income.
Efforts by Max Vargas, a complainant, to collect on a default
judgment in a state court lawsuit prompted the Debtor's Chapter 11
filing.
According to court filings, J Morales Inc. estimates between 1 and
49 creditors. The petition states funds will be available to
unsecured creditors.
About J Morales Inc.
J Morales Inc., doing business as El Nopal Mexican Grill, is a
Mexican restaurant.
J Morales Inc. filed a petition for relief under Subchapter V of
Chapter 11 of the Bankruptcy Code (Bankr. D. Nev. Case No.
22-13083) on Aug. 29, 2022. In the petition filed by Jose Morales,
as owner and director, the Debtor reported assets between $500,000
and $1 million and estimated liabilities between $1 million and $10
million.
Brian Shapiro has been appointed as Subchapter V trustee.
The Debtor is represented by Matthew C. Zirzow of LARSON & ZIRZOW,
LLC.
JGR GROUP: Wins Cash Collateral Access Thru Oct 4
-------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
authorized JGR Group, Inc. to use cash collateral on an interim
basis through October 4, 2022.
The Court said the Debtor may only make payments as set forth in
the Second Amended Budget and is not authorized to make any
additional payments without prior Court approval. The Interim Order
as modified will otherwise remain in full force and effect.
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.
On August 17, 2022, the Court entered a Fourth Amended Emergency
Order (I) Authorizing Debtors Use of Cash Collateral, (II)
Providing Adequate Protection Thereof And (III) Scheduling a Final
Hearing [ECF No. 87] adjourning the Final Hearing for August 30,
2022 at 10:00 a.m. and authorizing the Debtor to continue to use
cash collateral on an interim basis in accordance with the
Emergency Interim Order as modified therein through August 31,
2022.
The final hearing on the matter is adjourned to October 3 at 10
a.m. via Zoom.
A copy of the order is available at https://bit.ly/3q9uTVi 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.
JOHN COLEMAN: Court Approves $100K Sale of Carroll County Property
------------------------------------------------------------------
Judge Selene D. Maddox of the U.S. Bankruptcy Court for the
Northern District of Mississippi authorized John Coleman's sale of
the real property described as Lots 40, 41, and 42 located in
Indian Table Estates in Carroll County, Mississippi, to Indian
Table Estates, LLC, for $100,000 in accordance with the terms of
their Contract for the Sale and Purchase of Real Estate Lots and
Land.
The Property is owned jointly by the Debtor and his spouse,
Jennefer L. Coleman.
The ad valorem taxes will be prorated at closing on the real
property based on possession as between the Purchaser and the
Debtor.
The Debtor is authorized to execute such deed, transfer of title or
other related documents which are reasonably necessary to
consummate and close the sale of the Property. He is authorized to
sell the Property free and clear of liens, claims and interests
with the exception of normal, customary costs of closing and ad
valorem tax claims which will be prorated based upon possession,
and paid at closing, with the remaining funds to be disbursed.
Upon closing, after deducting one-half of the ad valorem real
estate taxes and reasonable closing costs, one-half of the
remaining funds will be paid directly to Jennefer for her one-half
interest in the Property; then the remaining one-half of the taxes
and closing costs will be deducted. The remaining proceeds will be
paid to the counsel for the Debtor, who will deposit the funds into
an interest-bearing, DIP account subject to the Chapter 11
Operating Guidelines and Reporting Requirements promulgated by the
Office of the United States Trustee, under the control of counsel
for the Debtor, with the funds on deposit therein not to be
disbursed except upon further order of the Court after notice and a
hearing.
The Debtor will file a report of sale within seven days after the
sale closes.
It is a final order as contemplated by the applicable Bankruptcy
Rules.
John Coleman filed for Chapter 11 bankruptcy (Bankr. N.D. Miss.
Case No. 21-11833) on September 29, 2021. The Hon. Selene D.
Maddox presides over the case.
JORGABY DELIVERY: Voluntary Chapter 11 Case Summary
---------------------------------------------------
Debtor: Jorgaby Delivery Services, Inc.
22538 Cuttler Rd
New Caney, TX 77357
Business Description: The Debtor is part of the general freight
trucking industry.
Chapter 11 Petition Date: September 5, 2022
Court: United States Bankruptcy Court
Southern District of Texas
Case No.: 22-32609
Judge: Hon. Jeffrey P. Norman
Debtor's Counsel: Donald Wyatt, Esq.
ATTORNEY DONALD WYATT PC
PO Box 132467
Spring, TX 77393
Tel: (281) 419-8703
Email: don.wyatt@wyattpc.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $100,000 to $500,000
The petition was signed by Magdiel Herrera as COO.
The Debtor listed Brynmawr, located at 620 W Germantown Pike Ste
310 Plymouth Mtng, PA 19462-2227, as its single unsecured creditor
holding a claim of $19,595.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/KSL7NTY/Jorgaby_Delivery_Services_Inc__txsbke-22-32609__0001.0.pdf?mcid=tGE4TAMA
JORGABY FREIGHT: Case Summary & One Unsecured Creditor
------------------------------------------------------
Debtor: Jorgaby Freight Services LLC
PO Box 2195
Humble, TX 77347
Business Description: The Debtors is in the general freight
trucking business.
Chapter 11 Petition Date: September 5, 2022
Court: United States Bankruptcy Court
Southern District of Texas
Case No.: 22-32608
Judge: Hon. Jeffrey P. Norman
Debtor's Counsel: Donald Wyatt, Esq.
ATTORNEY DONALD WYATT PC
PO Box 132467
Spring, TX 77393
Tel: (281) 419-8703
Email: don.wyatt@wyattpc.com
Total Assets: $4,352,791
Total Liabilities: $460,530
The petition was signed by Magdiel Herrera as COO.
The Debtor listed Jorgaby as its single unsecured creditor holding
a claim of $64,852.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/KFTPEVA/Jorgaby_Freight_Services_LLC__txsbke-22-32608__0001.0.pdf?mcid=tGE4TAMA
JORGABY LOGISTIX: Voluntary Chapter 11 Case Summary
---------------------------------------------------
Debtor: Jorgaby Logistix, Inc.
22538 Cuttler Rd
New Caney, TX 77357
Business Description: The Debtor is part of the general freight
trucking industry.
Chapter 11 Petition Date: September 5, 2022
Court: United States Bankruptcy Court
Southern District of Texas
Case No.: 22-32610
Judge: Hon. Christopher M. Lopez
Debtor's Counsel: Donald Wyatt, Esq.
ATTORNEY DONALD WYATT PC
PO Box 132467
Spring, TX 77393
Tel: (281) 419-8703
Email: don.wyatt@wyattpc.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Magdiel Herrera as COO.
The Debtor filed an empty list of its 20 largest unsecured
creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/K7IAGMY/Jorgaby_Logistix_Inc__txsbke-22-32610__0001.0.pdf?mcid=tGE4TAMA
KC PARTNERS LLC: Files Bare-Bones Chapter 11 Petition
-----------------------------------------------------
KC Partners LLC filed for chapter 11 protection without stating a
reason.
The Debtor is a Single Asset Real Estate, and its principal asset
is located at 3000 SW 104th Ct., in Miami, Florida 33165.
KC Partners LLC estimates between 1 and 49 creditors. The petition
states funds will be available to unsecured creditors.
About KC Partners LLC
KC Partners LLC is a Single Asset Real Estate (as defined in 11
U.S.C. Sec. 101(51B)).
KC Partners LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 22-16696) on Aug. 30,
2022. In the petition filed by Venise Fernandez, as manager, the
Debtor reported assets between $500,000 and $1 million and
liabilities between $500,000 and $1 million.
The Debtor is represented by Armando Alfonso of A.R.A. Law.
LAKEPORT CF: Taps Fairfield and Woods as Special Counsel
--------------------------------------------------------
Lakeport CF, LLC, received approval from the U.S. Bankruptcy Court
for the District of Colorado to hire Fairfield and Woods P.C. as
its special counsel.
The Debtor requires legal assistance in various litigations
involving Stewart Title Guaranty Company, Colorado Farms LLC and
Pinetree Financial Corporation in the District Court of Elbert
County; and in any potential state court litigation matters.
The hourly rates charged by the firm's attorneys and paralegals are
as follows:
Matthew Rork, Esq., Director $425 per hour
Laura Martinez, Director $395 per hour
Jason Robinson, Director $395 per hour
Erica Jacobson, Associate $325 per hour
Senior Paralegal $265 per hour
Junior Paralegal $250 per hour
As disclosed in court filings, Fairfield and Woods neither holds
nor represents an interest adverse to the Debtor and its bankruptcy
estate.
Fairfield and Woods can be reached at:
Matthew S. Rork, Esq.
Fairfield and Woods P.C.
1801 California Street, Suite 2600
Denver, CO 80202
Tel: (303) 894-4433/(303) 830-2400
Fax: (303) 830-1033
Email: mrork@fwlaw.com
About Lakeport CF
Lakeport CF, LLC, a company in Elbert County, Colo., sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.
Colo. Case No. 22-11941) on May 31, 2022, listing $10 million to
$50 million in both assets and liabilities.
Judge Michael E. Romero oversees the case.
Jeffrey A. Weinman, Esq., at Allen Vellone Wolf Helfrich & Factor,
PC and Fairfield and Woods P.C. serve as the Debtor's bankruptcy
counsel and special counsel, respectively.
LEGACY POOLS: Luxury Pools Provider Dives Into Chapter 11
---------------------------------------------------------
Legacy Pools LLC 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.
Legacy Pools is a closely held Florida limited liability company
organized on August 24, 2017 which conducts business from a leased
warehouse/office located at 727 North Drive, Suite L, Melbourne
Florida 32934. The Debtor launched its business in the Fall of 2018
specializing in the design and construction of in-ground luxury
pools and spas, positioning itself in the market as a high-volume
pool builder achieving first-year sales of over 130 pools.
Reasons for Filing Bankruptcy
Daniel A. Velasquez, the Debtor's counsel, explained in the case
management summary that at the height of the Debtor's popularity it
was directly impacted by COVID-19 which caused major disruptions to
the Debtor's business and the swimming pool construction industry
as a whole.
During the First Quarter of 2020, Debtor's production slowed due to
a decrease in demand, and its projects were delayed as employees
became sick and social distancing measures were put in place at job
sites. In addition, as the economy suffered and layoffs became
prominent, customers began slow paying or not paying their required
contractual progress payments which further impacted Debtor's
financial condition.
Supply chain issues further hampered the Debtor's operations and
caused
significant material cost increases. For each of its pool projects,
Debtor utilizes a wide array of raw materials including PVC,
lumber, and concrete to fulfill its customers' contracts. The raw
materials used by the Debtor in nearly every project have been on
backorder since the middle of 2020, and when available, these
materials are often triple their pre-pandemic price. These supply
chain delays, shortages and cost increases have directly impacted
Debtor's ability to meet its construction timelines and client
demands. The increased cost of raw materials contributed to a
significant increase in the Debtor's overhead, which already
included an average annual payroll budget of $1.6 million for its
32-employees.
Due to supply chain issues, increasing material costs, slow paying
customers, and other disruptions caused by the pandemic, it quickly
became difficult for the Debtor to meet its overhead obligations.
To bridge the gap and aid its ability to pay its operating
expenses, Debtor entered into two (2) separate merchant cash
advance lending arrangements with MCA Servicing Company and Samson
MCA, LLC (collectively, the "MCA Providers"). Unfortunately, rather
than aid the Debtor's ability to meet its ongoing obligations, the
MCA Providers bilked the Debtor of available operating funds which
compounded the Debtor's poor financial condition.
Faced with ongoing litigation, the prospect of additional lawsuits,
potential licensing issues, and creditor collection efforts, Debtor
elected to pursue Chapter 11 relief to restructure its financial
affairs for the benefit of its various stakeholders and continue
the operation of its pool construction business.
Debtor's Revenue Statistics
Year-to-Date Legacy Pools generated an estimated revenue of
$4,483,587.89. The Debtor generated approximately $10,000,000.00 in
gross revenue in 2021 and $9,613,657.00 in gross revenue in 2020
According to court filing, Legacy Pools 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
Oct. 3, 2022, at 11:00 a.m. telephonically on the following
conference line: 877-801-2055 (participant passcode: 8940738#).
About Legacy Pools LLC
Legacy Pools LLC -- https://www.legacypools.com -- is a top custom
pool builder serving Melbourne, FL, and surrounding cities.
Legacy Pools filed a petition for relief under Subchapter V of
Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla. Case No.
22-03123) on Aug. 30, 2022. In the petition filed by Charles David
Black, as president, the Debtor reported assets between $500,000
and $1 million and liabilities between $1 million and $10 million.
Robert Altman has been appointed as Subchapter V trustee.
The Debtor is represented by Daniel A Velasquez of Latham, Luna,
Eden & Beaudine LLP.
LENDMARK: Fitch Affirms 'B' Long-Term IDR, Outlook Stable
---------------------------------------------------------
Fitch Ratings has affirmed LFS Topco, LLC's (Lendmark) Long-Term
Issuer Default Rating (IDR) at 'B'. The Rating Outlook is Stable.
Fitch has also affirmed the senior unsecured debt rating at
'B'/'RR4'.
KEY RATING DRIVERS
The rating affirmation reflects Lendmark's modest but growing
market position in the U.S. personal installment lending industry,
robust risk-adjusted yields, and solid credit performance to date.
The ratings are constrained by Lendmark's monoline business model,
elevated leverage, higher risk appetite and subprime exposure, and
its partial private equity ownership, which increases the
possibility of shareholder-friendly actions and adds long-term
strategic uncertainty.
Lendmark has continued to grow its franchise primarily through de
novo branch openings, increasing the number of branches by 70 in
2021 and adding an additional 12 in the first quarter of 2022,
bringing the total to 448 branches across 20 states as of March 31,
2022. The company has also maintained its direct auto purchase
offering and indirect sales finance at 23% and 6% of receivables,
respectively, consistent with one year earlier but up meaningfully
from 2017. Fitch views the resulting product diversification and
presence of secured auto collateral favorably as they reduce the
overall risk profile of the portfolio.
Asset performance has remained relatively stable over the last five
years, with improvements seen during the COVID-19 pandemic due to
government stimulus, enhanced unemployment programs, and, to a
lesser extent, strength in used vehicle auction values. Charge-offs
and delinquencies have begun to normalize, with 30+ day
delinquencies averaging 5.1% across Lendmark's securitized
portfolios as of June 30, 2022; up from 3.1% a year earlier and in
line with averages seen in 2018 and 2019. Fitch expects performance
to continue to normalize in the current economic environment and
notes that the customer base may be particularly vulnerable to
rising unemployment and recessionary stresses, should they arise.
Lendmark's leverage (debt/tangible equity) is considered a primary
rating constraint. Leverage was 7.7x as of end-1Q22, which Fitch
views as high given the risk profile of the portfolio. Leverage has
been stable since the last review (7.8x as of 2Q21) and corresponds
to the 'b and below' category of Fitch's quantitative benchmark
range for balance sheet heavy finance and leasing companies with an
operating environment score in the 'a' category. The calculation
does not yet incorporate the impact of the Current Expected Credit
Loss (CECL) accounting standard, which Lendmark will adopt in 2023,
resulting in a one-time drop in equity from reclassification of the
loan loss reserve. While the impact of the adoption is unclear at
present, failure to maintain capitalization commensurate with the
risk profile of the business could result in negative rating
action.
Lendmark's funding profile is largely secured, which, despite being
non-recourse, Fitch views less favorably due to the encumbrance of
assets and limited financial flexibility during periods of stress.
The company did issue $300 million of senior unsecured notes in
2021, which brought the proportion of unsecured debt to its current
level of 13%; within Fitch's 'bb' category quantitative benchmark
range of 10% to 40%. Fitch would view further increases in funding
diversification and unencumbered assets as incrementally positive,
but does not expect the mix to improve in the short term given
market conditions.
Fitch views Lendmark's cash liquidity of $179 million at 1Q22 as
sufficient to support its operations and near-term funding
obligations, with the unsecured notes not maturing until 2026 and
the outstanding ABS predominantly still in their three- to
five-year revolving periods.
The Stable Outlook reflects Fitch's expectations for the
maintenance of robust risk-adjusted returns, normalizing but
manageable credit performance, and prudent balance sheet growth
resulting in stable leverage.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Meaningful deterioration in credit performance relative to
peers and above Lendmark's target range of 5%-8% in annual net
charge-offs;
-- Inability to maintain sufficient tangible equity for the risk
profile of the business post CECL-adoption;
-- Inability to access term funding for a prolonged period of 12-
24 months;
-- The imposition of new and more onerous regulations that
negatively impact Lendmark's ability to execute on its
business model.
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- A sustained decline in leverage below 6x;
-- An increase in the proportion of unsecured funding to at least
20% of total debt;
-- Continued maintenance of charge-offs within management's
target range through credit cycles;
-- Further diversification of the business model either through
product offering or geographical expansion.
DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS
The senior unsecured debt rating is equalized with the Long-Term
IDR, reflecting Fitch's expectation of average recovery prospects
in a stress scenario.
DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES
The unsecured debt rating is expected to move in tandem with the
IDR, but a meaningful decline in unencumbered assets could result
in the unsecured debt rating being notched down from the IDR.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING
The principal sources of information used in the analysis are
described in the Applicable Criteria.
ESG CONSIDERATIONS
LFS TopCo, LLC has an ESG Relevance Score of '4' for Customer
Welfare - Fair Messaging, Privacy & Data Security due to the
importance of fair collection practices and consumer interactions
and the regulatory focus on them, which has a negative impact on
the credit profile, and is relevant to the ratings in conjunctions
with other factors.
LFS TopCo, LLC has an ESG Relevance Score of '4' for Governance
Structure due to due to the presence of private equity ownership,
which has a negative impact on the credit profile, and is relevant
to the ratings in conjunction with other factors.
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
Rating Prior
------ -----
LFS TopCo, LLC LT IDR B Affirmed B
senior unsecured LT B Affirmed RR4 B
LEONARD BLOOM: GLDEX Buying San Diego Property for $6.495 Million
-----------------------------------------------------------------
Leonard Bloom asks the U.S. Bankruptcy Court for the Southern
District of California to approve his proposed private sale of the
real property located at 4605 Yerba Santa Drive, in San Diego,
California 92115, APN: 461-400-18-00, to GLDEX, LLC, for
$6,495,000, free and clear of liens, claims interests, and
encumbrances.
Prior to filing the instant case, the Debtor went into default on
the first and second mortgage notes secured to the Subject
Property. The Subject Property has a value of approximately
$6,495,000, and liens on the Subject Property totaling
approximately $4,728,770.44. As a result of the Debtor's default
on said mortgages secured to the Subject Property, he was facing
its imminent foreclosure sale. With the filing of the case, the
equity value of the Subject Property was preserved for the Estate.
The Debtor employed Kevin Gioia to market and list on the Multiple
Listing Service the Subject Property for a listing price of $11
million. Over the following months, the Debtor and his Broker
regularly cut the price until they got all the way down to
$6,495,000. At that list price they finally started to receive
serious interest in the home and offers. The offer the Debtor
accepted at $6,495,000 is the highest and best offer he received
and the Broker can confidently say that in his opinion this is the
highest the Debtor is able to sell the Subject Property for.
Therefore, the Debtor has brought this sell said Subject Property
for the purchase price and terms laid out in the attached
Residential Purchase Agreement and Addendum.
Kevin Gioia, a California Licensed Real Estate Broker, represents
Bloom in this transaction. The Buyer is represented by an
independent third party Broker, Rodney Watkins. Gioia was employed
by the estate to represent the Debtor in the sale of the Subject
Property on June 28, 2022. All commissions and fees for the
representation of the Buyer's and the Seller's Real Estate Agents
in this transaction are to be paid through escrow in accordance
with an executed listing agreement approved by the Court in said
Order to be employed.
On Aug. 24, 2022, after Debtor had attempted to market the Subject
Property for almost six months, he procured an offer to purchase
the Subject Property for a purchase price of $6,495,000 from the
Buyer. The Debtor accepted the offer to purchase from the Buyer,
and the Parties executed the purchase agreement and subsequent
addendum acknowledging that this sale is subject to Court
Approval.
According to the Broker, the fair market value of the Subject
Property is $6,495,000. The Buyer has procured financing to close
escrow and purchase the Subject Property, and provided proof of
funds/financing to the Debtor.
The Subject Property is subject to the following estimated secured
claims and closing costs to be paid through escrow as follows: (1)
1st Mortgage Lien = $3,436,428.21; (2) 2nd Mortgage Lien = $1,498;
(3) 3rd HOA Lien = $6,848.96; (4) 3rd Mortgage = $90,000; (5) SD
County Prop. Taxes = $33,118.95; (6) Commissions at 3% (Seller's
Agent agreed to reduce to 1%) = $194,850; (7) Estimated Misc. Title
/ Escrow Closing Costs = $3,163. The net amount to be deposited in
DIP account at closing is $627,895.
The Offer is the highest and best offer to purchase the property
procured by the Debtor since filing bankruptcy, and is justified by
his Broker's Comparative Market Analysis/Broker's Price Opinion.
The current Purchase Agreement price is enough to pay all voluntary
and involuntary liens on the property, and net approximately
$627,895 to the estate to pay all unsecured creditors and
administrative claims in full. Therefore, the sale will allow for
the general unsecured creditors through liquidating to be paid 100%
of said claims.
For the reasons stated, the respectfully asks the Court enters an
order waiving Bankruptcy Rule 6004(h) and authorizing the sale of
the Subject Property, free and clear of liens, claims interests and
encumbrances.
A copy of the Purchase Agreement is available for free at
https://tinyurl.com/2p92sy7v from PacerMonitor.com free of charge.
Leonard Bloom sought Chapter 11 protection (Bankr. S.D. Cal. Case
No. 22-00051-MM11) on Jan. 11, 2022. The Debot tapped Ahren A.
Tiller, Esq., at Bankruptcy Law Center, APC as counsel.
LEONARD BLOOM: Seeks Shortened Time on Sale of San Diego Property
-----------------------------------------------------------------
Leonard Bloom asks the U.S. Bankruptcy Court for the Southern
District of California for an order shortening time on his proposed
sale of the real property located at 4605 Yerba Santa Drive, in San
Diego, California 92115, to GLDEX, LLC, for $6,495,000, free and
clear of liens, claims interests, and encumbrances.
The Debtor's Counsel has spoken at great length with not only the
Buyer's Broker, yet the Debtor, escrow, and many other Parties to
the transaction, and it has been made clear that due to the
upcoming Motion to Convert, the expiring financing terms, along
with the possibility of rates on lending rising, the Motion to Sell
needs to be heard on shortened time.
In sum, the Debtor's Counsel can provide expedited notice via
email, fax, and overnight mail to all creditors in order to ensure
that all Parties are duly noticed.
Yet in order to avoid losing a buyer that will pay all claims in
full, the Debtor respectfully requests the Court enters an order
shortening time, whereby:
(a) Any Opposition to said Motion to Sell must be filed within
seven days;
(b) Any Reply to any Opposition(s) must be filed within three
days after that;
(c) Any hearing on said Motion to Sell be held 14 days, or
soon thereafter as the matter may be heard from the date of filing
the Motion to Sell; and
(d) For such other relief as the Court deems just and proper.
Leonard Bloom sought Chapter 11 protection (Bankr. S.D. Cal. Case
No. 22-00051-MM11) on Jan. 11, 2022. The Debot tapped Ahren A.
Tiller, Esq., at Bankruptcy Law Center, APC as counsel.
LEONARD BLOOM: Sept. 9 Hearing on $6.495M San Diego Property Sale
-----------------------------------------------------------------
Judge Margaret M. Mann of the U.S. Bankruptcy Court for the
Southern District of California granted Leonard Bloom's request to
shorten time on proposed private sale of the real property located
at 4605 Yerba Santa Drive, in San Diego, California 92115, APN:
461-400-18-00, to GLDEX, LLC, for $6,495,000, free and clear of
liens, claims interests, and encumbrances.
A hearing on the Motion is set for Sept. 9, 2022, at 10:00 a.m. The
Objection Deadline is Sept. 6, 2022. The Reply Deadline is Sept. 8,
2022, at 10:00 a.m.
The Debtor must serve all Parties via either Notice of Electronic
Filing Notice or via Overnight Mail, with the Notice of Motion, and
the shortened deadlines to respond.
Leonard Bloom sought Chapter 11 protection (Bankr. S.D. Cal. Case
No. 22-00051-MM11) on Jan. 11, 2022. The Debot tapped Ahren A.
Tiller, Esq., at Bankruptcy Law Center, APC as counsel.
LEVEL FOUR ORTHOTICS: Files for Chapter 11 to Sell to Bionic
------------------------------------------------------------
Level Four Orthotics & Prosthetics, Inc., and its subsidiaries
filed for chapter 11 protection to sell the assets to Bionic
Prosthetics and Orthotics Group LLC for $3.25 million, absent
higher and better offers.
The Debtors commenced Chapter 11 cases to effectuate the transfer
of substantially all of their assets free and clear of all liens,
claims, encumbrances, or interests through a Sec. 363 sale process
and, within the 90-day time limit required by Subchapter V of the
Bankruptcy Code, to present a plan of liquidation for confirmation
that allows for an equitable and orderly distribution to all claim
holders.
In the wake of a series of unsuccessful management teams, followed
by the effects of COVID and the "Great Resignation", it was readily
apparent that the Debtors were unable to operate profitably, and
enterprise value was quickly diminishing. As a result, the Debtors
pursued strategic alternatives, eventually determining to file
these chapter 11 cases to pursue a sale of substantially all of
their assets.
As a result of pre-petition efforts, the Debtors were able to reach
agreement on a stalking horse asset purchase agreement with Bionic
Prosthetics and Orthotics Group LLC.
Pursuant to the Stalking Horse Agreement, and subject to higher or
better offers through the bidding and auction process, the Stalking
Horse Bidder has agreed to purchase the assets for aggregate
consideration consisting of $3,250,000 cash at closing, plus an
amount equal to the dollar for dollar value of any deposits and
prepaid expenses related to assumed contracts (estimated to be
approximately $92,000), plus a payment (based on the completed
percentage) for work in progress delivered within 30 days, and
collected within 60 days, following the closing (estimated to be
worth $360,000), plus the assumption of certain liabilities and
cure costs.
The Debtors have filed a motion seeking approval of procedures and
deadlines pursuant to which the Debtors will market, solicit, and
select the highest or otherwise best offer for the sale of the
assets. The Debtors propose an Oct. 17, 2022 deadline for
qualified bids, and an auction for Oct. 20.
About Level Four Orthotics
Level Four Orthotics & Prosthetics, Inc., doing business as Restore
POC, is a provider of custom prosthetics, orthotics, and infant
cranial remolding products with a mission to provide affordable,
quality products and limb loss solutions to patients in need.
Level Four Orthotics & Prosthetics and five affiliates, including
Cocco Enterprises, Inc., sought Chapter 11 protection (Bankr. D.
Del. Lead Case No. 22-10807) on August 29, 2022.
Level 4 reported assets and debt of $10 million to $50 million as
of the bankruptcy filing. The Debtors have prepetition loan
obligations totaling $20,235,011 as of the Petition Date secured by
some or all of the assets of each the Debtors.
The Hon. J. Kate Stickles is the case judge.
The Debtors tapped RUBERTO, ISRAEL & WEINER, P.C., as general
bankruptcy counsel, and CROSS & SIMON, LLC, as local bankruptcy
counsel. VERDOLINO & LOWEY, P.C., is the Debtors' accountant.
KROLL RESTRUCTURING ADMINISTRATION LLC is the claims agent.
LONESOME VALLEY: Wins Interim Cash Collateral Access
----------------------------------------------------
The U.S. Bankruptcy Court for the District of Arizona authorized
Lonesome Valley Brewing, Inc. to use cash collateral in accordance
with the budget, with a 10% variance, on an immediate interim basis
through September 15, 2022.
Applicable creditors will receive replacement liens in the Debtor's
post-petition assets, including cash, to the same extent,
validity, and priority as their interest in cash collateral as of
the Petition Date up to the value of any depreciation in the
unavoidable portion of such interest during the pendency of the
Case.
A hearing on the matter is set for September 15 at 1:30 p.m.
As previously reported by the Troubled Company Reporter, as of the
Petition Date, the Debtor held approximately $1,000 in
cash-on-hand. The Debtor additionally had an estimated $5,556 in
deposit accounts. Lastly, as of the Petition Date, the Debtor
believes it had approximately $7,000 in pending proceeds from
unprocessed credit card transactions.
The Debtor is aware of the following lenders who have asserted or
may assert a security interest in the Debtor's accounts or
receivables:
a. Arizona Department of Revenue
b. Greenbox Capital/Merchant Capital Group, LLC
c. Holloway Funding Group/ Adam Wines Consulting, LLC
d. IOU Central Inc.
e. United States Small Business Administration
f. DMKA, LLC
The Debtor is also aware that Corporation Service Company and First
Corporate Solutions have filed financing statements on behalf of
unnamed creditors that assert an interest in the Debtor's accounts
or receivables.
A copy of the order and the Debtor's budget is available at
https://bit.ly/3CRm0Hl from PacerMonitor.com.
The Debtor projects $53,000in income and $52,723 in expenses
through September 14.
About Lonesome Valley Brewing, Inc.
Lonesome Valley Brewing, Inc. operates two bar and restaurant
locations in northern Arizona: a craft brewery in Prescott Valley
and a pub in Prescott.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Ariz. Case No. 22-05747) on August 29,
2022. In the petition signed by Joanne Cole, chief financial
officer, the Debtor disclosed up to $500,000 in assets and up to
$10 million in liabilities.
Judge Brenda K. Martin oversees the case.
Thomas H. Allen, Esq., at Allen Barnes & Jones, PLC is the Debtor's
counsel.
LUMILEDS HOLDING: Gibson Dunn Represents Term Lender Group
----------------------------------------------------------
Pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure,
the law firm of Gibson, Dunn & Crutcher LLP submitted a verified
statement that it is representing the Ad Hoc Term Loan Lender Group
in the Chapter 11 cases of Lumileds Holding B.V., et al.
In or around October 2019, the Ad Hoc Term Loan Lender Group was
formed and retained attorneys currently affiliated with Gibson,
Dunn & Crutcher LLP to represent them as counsel in connection with
a potential restructuring of the outstanding debt obligations of
the above-captioned debtors and certain of their subsidiaries and
affiliates.
As of Aug. 26, 2022, members of the Ad Hoc Term Loan Lender Group
and their disclosable economic interests are:
Anchorage Collateral Management, L.L.C.
Anchorage Capital Group, L.L.C.
Anchorage Strategies Advisor, L.L.C.
610 Broadway, 6th Floor
New York, NY 10012
* Term Loans: $335,634,362.00
* Revolving Facility Loans: $14,652,000.00
($16,700,000 committed)
Avenue Capital Management II, L.P. and
Avenue Europe International Management, L.P.
11 West 42nd Street, 9th Floor
New York, NY 10036
* Term Loans: $59,446,601.77
Blackstone Liquid Credit Strategies LLC
345 Park Ave, 31st Floor
New York, NY 10154
* Term Loans: $1,747,796.08
Brigade Capital Management, LP
399 Park Avenue
New York, NY 10022
* Term Loans: $21,925,002.11
Cerberus Capital Management LP
875 Third Avenue, 10th Floor
New York, NY 10022
* Term Loans: $74,282,439.31
CIFC Asset Management LLC
875 Third Avenue, 24th Floor
New York, NY 10022
* Term Loans: $11,449,549.24
Credit Suisse Loan Funding LLC
Credit Suisse Securities (USA) LLC
11 Madison Avenue, 4th Floor
New York, NY 10010
* Term Loans: $5,057,622.62
* Revolving Facility Loans: ($7,900,000.00 committed)
Deutsche Bank Securities Inc.
One Columbus Circle, 7th Floor
New York, NY 10019
* Term Loans: $30,064,119.14
Eaton Vance Management
Two International Place, 9th Floor
Boston, MA 02110
* Term Loans: $63,904,349.84
MJX Asset Management
12 East 49th Street, 38th Floor
New York, NY 10017
* Term Loans: $26,476,570.13
Nut Tree Capital Management, LP
55 Hudson Yards, 22nd Floor
New York, NY 10001
* Term Loans: $192,321,635.65
Nuveen Asset Management, LLC and
Teachers Advisors, LLC
8625 Andrew Carnegie Blvd.
Charlotte, NC 28262
* Term Loans: $146,644,342.16
Pictet Asset Management Limited
Moor House, 120 London Wall
London, EC2Y 5ET
United Kingdom
* Term Loans: $31,838,501.00
Sound Point Capital Management, L.P.
375 Park Avenue, 33rd Floor
New York, NY 10152
* Term Loans: $50,070,141.29
Vibrant Capital Partners, Inc.
350 Madison Avenue
New York, NY 10017
* Term Loans: $26,847,757.65
Voya Alternative Asset Management LLC
7337 East Doubletree Ranch Road Suite 100
Scottsdale, AZ 85258
* Term Loans: $24,465,940.00
Counsel to the Ad Hoc Term Loan Lender Group can be reached at:
GIBSON, DUNN & CRUTCHER LLP
Scott J. Greenberg, Esq.
Michael J. Cohen, Esq.
Keith R. Martorana, Esq.
200 Park Avenue
New York, NY 10166
Tel: (212) 351-4000
Fax: (212) 351-4035
E-mail: sgreenberg@gibsondunn.com
mcohen@gibsondunn.com
kmartorana@gibsondunn.com
A copy of the Rule 2019 filing, downloaded from PacerMonitor.com,
is available at https://bit.ly/3wWmfNP
About Lumileds Holding B.V.
Lumileds Holding B.V. is a global manufacturer of innovative
lighting solutions. In the 1960s, the Company expanded its
offerings to also include state-of-the-art LED devices alongside
the automotive lighting technologies that it had continued to
innovate. Today, the Company continues to develop and manufacture
high-tech lighting products for the automotive, mobile device,
consumer, general lighting, and industrial markets.
Lumileds Holding and several affiliates sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case
No. 22-11155) on August 29, 2022. In the petition signed by
Johannes Paulus Teuwen, chief financial officer, Lumileds Holding
disclosed up to $100 million in assets and up to $500 million in
liabilities.
Judge Lisa G. Beckerman oversees the case.
The Debtor tapped Latham & Watkins LLP as legal counsel, Paul,
Weiss, Rifkind, Wharton & Garrison LLP as special financing and
employee compensation counsel, AlixPartners, LLP as financial
advisor, and Evercore Inc. as investment banker, and Epiq Corporate
Restructuring, LLC as claims and noticing agent.
Davis Polk & Wardwell LLP serves as counsel to the DIP Lenders.
The Secured Lender Group retained Gibson Dunn & Crutcher LLP,
Loyens & Loeff N.V., Roland Berger LP, and PJT Partners LP, as
counsel or financial advisor.
MARKET STREET: Files Bare-Bones Chapter 11 Petition
---------------------------------------------------
Market Street Holdings LLC filed for chapter 11 protection without
stating a reason.
The Debtor is a Single Asset Real Estate and its principal asset is
located at 221 Washington Street, in Newark, New Jersey 07102.
An affiliate, Dalex Development Inc. sought Chapter 11 protection
on Sept. 28, 2021 (Bankr. D.N.J. Case No. 21-17577).
According to court filings, Market Street Holdings 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
Oct. 5, 2022, at 9:00 AM at Telephonic.
Proofs of claim are due by Nov. 8, 2022.
About Market Street Holdings
Market Street Holdings LLC is a Single Asset Real Estate (as
defined in 11 U.S.C. Sec. 101(51B)).
Market Street Holdings LLC sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D.N.J. Case No. 22-16840) on Aug.
30, 2022. In the petition filed by Daniel M. Risis, as member, the
Debtor reported assets between $1 million and $10 million and
liabilities between $500,000 and $1 million.
The Debtor is represented by David L. Stevens of Scura, Wigfield,
Heyer & Stevens.
MASTEN SPACE SYSTEMS: Wins $1.4MM DIP Loan from Astrobotic
----------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware authorized
Masten Space Systems, Inc. to use cash collateral in accordance
with the budget and obtain postpetition financing, on a final
basis.
The Debtor is permitted to obtain postpetition financing in the
aggregate principal amount not to exceed $1,400,000 from Astrobotic
Technology, Inc. or its respective assigns pursuant to the
Superpriority Senior Secured Debtor-in-Possession Term Credit
Facility dated August 10, 2022.
The DIP Loan will accrue interest at a rate of 12% per annum, which
will be due and payable on the Maturity Date.
The Debtor needs financing to, among other things, permit the
orderly continuation of the operation of its business, maintain
business relationships with vendors and customers, make payroll,
effectuate a sale process, and satisfy other working capital and
operational, financial, and general corporate needs in the Chapter
11 Case.
The Debtor, the DIP Lender, and Agile Space Industries Inc.
stipulated and agreed that the UCC-1 Financing Statement filed by
Agile on July 22, 2022, terminated and the Bankruptcy Court ordered
such termination.
The cash collateral under the Final DIP Order will include (a) the
Debtor's interest in that certain assignable credit issued by Space
Exploration Technologies Corporation to the Debtor in the amount of
$14,000,000 (subject to the terms and conditions thereof) and (b)
any and all claims or causes of action that the Debtor or its
estate may possess against SpaceX including, but not limited to,
any chapter 5 Avoidance Actions and any and all claims arising from
or related to (i) the LSA, (ii) the SpaceX Credit, (iii) the Credit
Letter, (iv) the Purchased Assets, and (v) the debtor's bankruptcy
case.
The DIP Lender is entitled to be paid the Closing Fee, Commitment
Fees, and Exit Fee in the aggregate amount of $350,000 pursuant to
the Credit Agreement, and the DIP Lender, in its capacity as such,
additionally will be entitled to reimbursement of DIP Lender
Expenses of up to $100,000; and (ii) the cash component of the
Stalking Horse Bid shall be increased to $4,500,000 (including any
credit bid) and the Stalking Horse Bidder's expense reimbursement
shall be reduced to 2% of such cash component.
For the DIP Obligations, the DIP Lender is granted the allowed DIP
Facility Superpriority Claims pursuant to section 364(c)(1) of the
Bankruptcy Code. The DIP Facility Superpriority Claims will be
deemed allowed, legal, valid, binding, continuing, and enforceable
claims, not subject to disallowance, subordination, impairment, or
avoidance other than as provided herein, for all purposes in the
Chapter 11 Case and any successor case.
As security for the repayment of the DIP Obligations, the DIP
Lender is granted, the Senior DIP Liens. The Senior DIP Liens are
legal, valid, binding, continuing, enforceable, and fully perfected
as of the date hereof pursuant to section 364(c)(2) of the
Bankruptcy Code.
As security for the repayment of the DIP Obligations, the DIP
Lender is granted the Second Priority DIP Liens pursuant to section
364(c)(3) of the Bankruptcy Code. The Second Priority DIP Liens are
legal, valid, binding, continuing, enforceable, and fully perfected
as of the date thereof.
The DIP Loan will mature on the earliest to occur of the
following:
a. About 60 calendar days after the date of entry of the
Interim DIP Order;
b. About 25 calendar days after entry of the Interim DIP Order
if the Final DIP Order has not been entered;
c. The date upon which the Bankruptcy Court enters an order
approving financing between Borrower and a person or entity other
than DIP Lender;
d. The closing of any sale of any of Borrower's assets in
accordance with section 363(b) of the Bankruptcy Code that
indefeasibly satisfies the DIP Obligations in full;
e. The "substantial consummation" of a chapter 11 plan in the
Chapter 11 Case;
f. The date upon which the acceleration of any of the DIP
Loans or the termination of the commitments to make the DIP Loans
occurs following an Event of Default;
g. The filing of a motion by Borrower seeking dismissal of the
Chapter 11 Case, the dismissal of the Chapter 11 Case, the filing
of a motion by Borrower seeking to convert the Chapter 11 Case to a
case under chapter 7 of the Bankruptcy Code, or the conversion of
the Chapter 11 Case to a case under chapter 7 of the Bankruptcy
Code; and
h. Borrower's failure to use its best efforts to contest,
object to, or seek withdrawal of any motion by any person or entity
seeking to convert the Chapter 11 Case to a case under chapter 7 of
the Bankruptcy Code.
These events constitute an "Event of Default":
1. [reserved];
2. The failure of any of the Chapter 11 Milestones to be
satisfied timely;
3. [reserved];
4. The failure by Borrower to be in compliance in all respects
with any provision of the DIP Documentation or a breach of any of
the "Representations and Warranties";
5. The reversal, modification, amendment, stay, or vacatur of
the Interim DIP Order or the Final DIP Order, as applicable, as
entered by the Bankruptcy Court, without the prior written consent
of DIP Lender;
6. The failure of the Interim DIP Order to be entered on or
before August 15, 2022;
7. The filing with the Bankruptcy Court of a chapter 11 plan
of reorganization or liquidation in the Chapter 11 Case that does
not provide for indefeasible payment in full in cash to DIP Lender
of all of the DIP Obligations on the effective date of such plan;
8. The appointment in the Chapter 11 Case of: a responsible
officer with enlarged powers relating to the operation of the
business of Borrower (powers beyond those set forth in sections
1106(a)(3) and (a)(4) of the Bankruptcy Code); a trustee; a
receiver; or an examiner;
9. The granting of relief from the automatic stay by the
Bankruptcy Court to any other creditor or person or entity in the
Chapter 11 Case;
10. The failure to pay any amounts due and owing to DIP Lender
under, in respect of, or in connection with the DIP Credit
Facility;
11. The ceasing of any provision in the DIP Documentation to be
binding on or enforceable against the Parties;
12. The occurrence of a default by Borrower under the
Astrobotic APA, which default is not timely cured by any applicable
cure period; and
13. The termination by any counterparty of any material
contract that would constitute a Material Adverse Change or the
termination by any party of any Stalking Horse Agreement.
A copy of the order is available at https://bit.ly/3CX2gCs from
PacerMonitor.com.
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. Masten Space Systems Inc. filed for
chapter 11 protection (Bankr. D. Del. Case No. 22-10657) on July
29, 2022. 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.
Judge Brendan L. Shannon oversees the case.
Morris James LLP, is the Debtor's counsel. Alston & Bird LLP is
the Debtor's corporate counsel. Gavin/Solmonese LLC is the
financial advisor.
MATHESON FLIGHT: Committee Taps Felderstein as Bankruptcy Counsel
-----------------------------------------------------------------
The official committee representing unsecured creditors of Matheson
Trucking, Inc., an affiliate of Matheson Flight Extenders, Inc.,
received approval from the U.S. Bankruptcy Court for the Eastern
District of California to employ Felderstein Fitzgerald Willoughby
Pascuzzi & Rios, LLP as its legal counsel.
The firm's services include:
a. advising the committee with respect to matters and
proceedings in Matheson Trucking's Chapter 11 case that may impact
on the treatment of and recovery by general unsecured creditors;
b. providing the committee with legal advice regarding its
powers and duties under the Bankruptcy Code;
c. advising the committee members with respect to their duties
to the estate and other creditors;
d. advising the committee regarding motions and other
developments in Matheson Trucking's case;
e. advising the committee with respect to recovery of
preferential payments and fraudulent transfers;
f. advising the committee with respect to potential actions
and claims against third parties;
g. advising the committee regarding the development and
confirmation of a Chapter 11 plan); and
h. assisting the committee in other insolvency-related
matters.
The hourly rates charged by the firm for its services are as
follows:
Paul J. Pascuzzi, Managing Partner $525
Thomas A. Willoughby, Partner $525
Jason E. Rios, Partner $450
Partners $350 to $525
Associates $350
Legal Assistants $95 to $100
In addition, the firm will seek reimbursement for its out-of-pocket
expenses.
Paul Pascuzzi, Esq., a partner at Felderstein, 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:
Paul J. Pascuzzi, Esq.
Jason E. Rios, Esq.
Felderstein Fitzgerald Willoughby Pascuzzi & Rios LLP
500 Capitol Mall, Suite 2250
Sacramento, CA 95814
Tel: (916) 329-7400
Fax: (916) 329-7435
Email: ppascuzzi@ffwplaw.com
jrios@ffwplaw.com
About Matheson
Matheson Flight Extenders, Inc. and Matheson Postal Services, Inc.
provide short and long-haul transportation, logistics and ground
handling services. The companies are based in Sacramento, Calif.
Matheson Flight Extenders and Matheson Postal Services sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D.
Calif. Case Nos. 22-21148 and 22- 21149 ) on May 5, 2022. On July
14, 2022, Matheson Trucking, Inc., an affiliate, filed for Chapter
11 protection (Bankr. E.D. Calif. Case No. 22-21758). The cases are
jointly administered under Case No. 21148.
In the petitions signed by Charles J. Mellor, chief restructuring
officer, the Debtors disclosed up to $50 million in both assets and
liabilities.
Judge Christopher M. Klein oversees the cases.
Nuti Hart, LLP and Development Specialists, Inc. serve as the
Debtors' bankruptcy counsel and financial advisor, respectively.
Donlin, Recano & Company, Inc. is the Debtors' claims, noticing and
solicitation agent, and administrative advisor.
The U.S. Trustee for Region 17 appointed an official committee of
unsecured creditors in the Debtors' cases. The committee is
represented by Felderstein Fitzgerald Willoughby Pascuzzi & Rios,
LLP.
MIRACLE CENTER OF VENTURA: Returns to Chapter 11 Bankruptcy
-----------------------------------------------------------
Miracle Center Church of Ventura County Inc returned to chapter 11
bankruptcy to stop foreclosure. The Debtor filed as a small
business debtor seeking relief under Subchapter V of Chapter 11 of
the Bankruptcy Code.
The Debtor is a California religious corporation organized under
the California Nonprofit Religious Corporation Law exclusively for
religious purposes. To accommodate its religious activities, the
Debtor acquired the property at 38 Teloma Drive, Ventura CA 93003
from The First Christian Church of Ventura for $3.1 million.
Under the terms of the note executed between the seller and the
Debtor for the purchase of the property, the Debtor was able to
consistently make the contractual monthly payments and scheduled
balloon payments to the seller until October 2019 when the Debtor
incurred financial difficulties. The seller agreed to allow the
Debtor to initiate a fund-raising campaign from its congregation
but the the effort was short-lived at the onset of the Covid-19
pandemic.
The Seller initiated a foreclosure action by filing a notice of
default on Jan. 13, 2022, and a notice of sale on April 14, 2022
due to the Debtor's arrears on the note.
With no relief from the sate court lawsuit, the Debtor found its
only option to prevent foreclosure of the Property was to file for
bankruptcy. The Debtor filed for Chapter 11 bankruptcy on May 12,
2022 (Bankr. C.D. Cal. Case No. 22-10351) but the case was
dismissed.
Thereafter, the Seller reissued a notice of sale of the property
for Aug. 30, 2022. Unable to immediately obtain the necessary
funds to cure the default -- and still disputing the exact amount
of the loan that is in default -- the Debtor found it necessary to
once again seek protection under the U.S. Bankruptcy Code in an
effort to prevent foreclosure of the Property.
According to court filings, Miracle Center Church of Ventura County
Inc. estimates between 1 and 49 creditors. The petition states
funds will be available to unsecured creditors.
The First Christian Church of Ventura County is the Debtor's only
secured creditor claiming a security interest in the amount of
$3.208 million against the Debtor's real property. The Debtor
disputes the amount of the claim by First Christian. The fair
market value of the Property is $3.39 million based on the County
of Ventura assessed valuation as of July 5, 2022.
About Miracle Center Church of Ventura County Inc.
Miracle Center Church of Ventura County Inc. --
https://www.miraclecenterventura.org -- is a church in Ventura,
California.
Miracle Center Church of Ventura County Inc. filed a petition for
relief under Subchapter V of Chapter 11 of the Bankruptcy Code
(Bankr. C.D. Cal. Case No. 22-10664) on August 29, 2022. In the
petition filed by Alozo McCowan, as CEO and president, the Debtor
reported assets and liabilities between $1 million and $10
million.
John-Patrick McGinnis Fritz has been appointed as Subchapter V
trustee.
The Debtor is represented by John K Rounds of Rounds & Sutter, LLP.
MOLAOI RESTAURANT: Taps Koutsoudakis & Iakovou as Legal Counsel
---------------------------------------------------------------
Molaoi Restaurant Corp. received approval from the U.S. Bankruptcy
Court for the Eastern District of New York to hire Koutsoudakis &
Iakovou Law Group, PLLC to serve as legal counsel in its Chapter 11
case.
The firm's services include:
a. advising the Debtor of its powers and duties;
b. advising the Debtor concerning its affairs and assisting
the Debtor in seeking confirmation of any proposed Chapter 11 plan
and solicitation of acceptances for the plan;
c. assisting in the investigation of the assets, liabilities
and financial condition of the Debtor that may be required;
d. representing the Debtor at all hearings or matters before
the court and the Office of the U.S. Trustee pertaining to its
affairs;
e. prosecuting and defending litigated matters and such other
issues that might arise during this Chapter 11 case;
f. advising the Debtor with respect to its executory contracts
and leases and other bankruptcy-related matters; and
g. performing other legal services for the Debtor.
The hourly rates charged by the firm's attorneys and paralegals are
as follows:
Associates $425 to $500 per hour
Partners/Counsel $600 to $700 per hour
Law Clerks $325 per hour
Financial Analysts $260 per hour
Paralegals $125 per hour
In addition, the firm will seek reimbursement for work-related
expenses.
The hourly rate of Ralph Preite, Esq., is $600. Mr. Preite is the
attorney at Koutsoudakis who will perform the bulk of the legal
services in this matter.
As disclosed in court filings, Koutsoudakis & Iakovou is a
"disinterested person" within the meaning of Section 101(14) of the
Bankruptcy Code.
The firm can be reached at:
Ralph E. Preite, Esq.
Koutsoudakis & Iakovou Law Group, PLLC
40 Wall Street, 49th Floor
New York, NY 10005
Main: (212) 404-8644
Direct: (212) 404-8608
Email: ralph@kilegal.com
About Molaoi Restaurant
Molaoi Restaurant Corp., doing business as Blue Door Souvlakia,
filed a petition under Chapter 11, Subchapter V of the Bankruptcy
Code (Bankr. E.D.N.Y. Case No. 22-40017) on Jan. 5, 2022, listing
as much as $1 million in both assets and liabilities. Salvatore
LaMonica, Esq., serves as Subchapter V trustee.
Judge Jil Mazer-Marino oversees the case.
The Debtor tapped Koutsoudakis & Iakovou Law Group, PLLC as legal
counsel and Saranto Calamas, CPA, PC as accountant.
MOUNTAIN PROVINCE: Fitch Cuts Issuer Default Rating to 'CC'
-----------------------------------------------------------
Fitch Ratings has downgraded Mountain Province Diamonds Inc.'s
Issuer Default Rating (IDR) to 'CC' from 'CCC'. Fitch has also
downgraded the senior secured notes to 'CC'/'RR4' from
'CCC'/'RR4'.
The downgrade reflects the increasing uncertainty MPVD will be able
to obtain financing to address the notes due December 2022 and
Fitch's view that the company may need to pursue a destressed debt
exchange in the next four months in order to avoid bankruptcy.
Currently, MPVD's ability to secure additional financing to
refinance the notes remains highly uncertain, although Fitch views
this as partially offset by a supportive majority shareholder, Mr.
Dermot Desmond.
KEY RATING DRIVERS
Restructuring Likely Required: A default in the next four months is
a real possibility if MPVD is unable to refinance the notes due
December 2022. Fitch believes there is heightening uncertainty MPVD
will be able to refinance the notes given the notes are maturing in
the next four months with no solution yet in place, in addition to
recent defaults in the sector which may result in lender fatigue
for MPVD. Fitch believes MPVD may need to pursue a destressed debt
exchange if alternative financing is unavailable or at acceptable
terms.
Near-Term Maturities Pressure Liquidity: As of June 30, 2022, MPVD
had cash and cash equivalents of CAD29 million (before repayment of
CAD12.873 million of junior revolving credit facility obligations
due December 2027). Given MPVD's relatively small size, any
shortfall in business performance could exhaust minimal liquidity.
The operation of single mine heightens the risk of operational
disruptions. Fitch views MPVD's weak liquidity as partially offset
by a supportive majority shareholder.
Fitch believes Mr. Desmond will likely continue to be supportive
and work with MPVD to find a solution for the upcoming notes
maturity. However, Fitch expects liquidity to be relatively minimal
and a suspension of mining activity, a period of low prices or
business underperformance could quickly erode liquidity.
Supportive Majority Shareholder: The coronavirus pandemic resulted
in MPVD suspending its third diamond sale in 2020, pressuring
liquidity. During 2Q20, MPVD entered into an agreement with
Dunebridge, a company controlled by Mr. Desmond, to sell up to $50
million of diamonds at prevailing market prices. Effective November
2020, a new agreement to increase the value to $100 million from
$50 million was executed.
On Sept. 30, 2020, MPVD entered into the Dunebridge revolving
credit facility, which resulted in the assignment of the facility
from the existing lenders to Mr. Desmond. The agreement adjusted
the interest rate to a fixed 5% per annum, payable monthly and
removed certain financial maintenance covenants. In 2Q21, MPVD
added a USD33 million term loan facility to the revolving credit
facility. On Sept. 24, 2021, the Dunebridge RCF was extended from
Sept. 30, 2021 to March 31, 2022. On March 28, 2022, MPVD completed
a new USD50 million Dunebridge credit facility due Dec. 15, 2027
with a cash payment interest rate of 8% per annum, paid
semi‐annually until December 2022. Following this date, the
interest rate will be 2% above the margin on the senior secured
notes payable then outstanding.
Stable Production Profile: The Gahcho Kué (GK) mine is located in
Canada's Northwest Territories, a mining-friendly and politically
stable jurisdiction. MPVD has a limited track record with the GK
mine, declaring commercial production on March 1, 2017, but De
Beers Canada, Inc., the majority owner and operator of the GK mine,
has extensive mining history, which helps mitigate risk. MPVD's
small size and limited operating history is also offset by a
relatively long LOM plan, which extends to 2030. All mining at the
GK mine is currently open pit, which also reduces operational risk.
Fitch expects MPVD's share of annual diamond production to average
around 2.8 million carats over the next four years, barring any
unexpected production curtailments.
Strong Margins: MPVD benefits from strong EBITDA margins driven by
relatively high-grade and low-cost mining. Fitch expects solid
margins and manageable capital spending at relatively stable prices
to result in relatively neutral FCF generation on average.
Kennady Provides Potential Flexibility: MPVD completed its
all-share acquisition of Kennady Diamonds Inc., an advanced diamond
exploration project, on April 13, 2018. The acquisition adds 13.62
million carats of indicated resources in 8.50 million tonnes (Mt)
at a grade of 1.60 carats/tonne and value of US$63/carat. Fitch
believes adding Kennady to the LOM plan would be positive, given it
provides the opportunity to extend the mine life and complements
the GK mine assets.
DERIVATION SUMMARY
MPVD is smaller than copper producers Taseko Mines Limited
(B-/Stable) and Ero Copper Corp. (B/Stable) although has comparable
margins and leverage; however, MPVD's projected leverage profile is
highly dependent on the ability to secure additional financing.
MPVD is also smaller and less diversified than Eldorado Gold Corp.
(B+/Stable), although Eldorado has some operations in higher
regulatory risk jurisdictions.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within the Rating Case for the Issuer
-- The secured notes due December 2022 are refinanced;
-- Average diamond selling prices decline over the rating
horizon;
-- Production averages roughly 2.8 million carats per year over
the next four years, declining through 2024;
-- Minimal exploration spending;
-- No dividends or share repurchases.
Going-Concern (GC) Approach
The recovery analysis assumes MPVD would be considered a going
concern (GC) in bankruptcy, and the company would be reorganized
rather than liquidated. Assumptions for the GC approach include:
Fitch assumes a bankruptcy scenario exit-GC EBITDA of CAD50
million. The EBITDA estimate is reflective of variable production
levels that tend to fluctuate with kimberlite mix shifts. The GC
EBITDA estimate incorporates a scenario of prolonged weakness in
the diamond market and also reflects the volatility and
unpredictability of diamond prices.
Fitch applies EBITDA multiples generally ranging from 4x-6x for
mining issuers, given the cyclical nature of commodity prices.
MPVD's 4x multiple is at the low end of the range, reflecting its
short operating history, operation of a single mine and
single-commodity concentration.
Fitch applies a GC EBITDA of CAD50 million and a 4x enterprise
value multiple, which results in an enterprise value of CAD200
million and compares closely with Fitch's estimated liquidation
value. Fitch assumes a 10% administrative claim in the recovery
analysis, which results in a 'CC'/'RR4' rating for the senior
secured notes.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Financing is secured addressing the 2022 notes.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Inability to secure financing addressing the 2022 notes;
-- Formal announcement of a distressed debt exchange.
LIQUIDITY AND DEBT STRUCTURE
Minimal Headroom: As of June 30, 2022, MPVD had cash and cash
equivalents of roughly CAD29million. Fitch believes any shortfall
in business performance may quickly exhaust remaining liquidity.
ISSUER PROFILE
MPVD holds a 49% interest in the Gaucho Kue diamond mine, 51% owned
and operated by De Beers Canada. MPVD also owns a 100% interest in
the Kennady North diamond project located in Canada's Northwest
Territories, adjacent to the GK mine.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
Rating Prior
------- --------
Mountain Province
Diamonds Inc.
LT IDR CC Downgrade CCC
Senior Secured 2nd Lien LT CC Downgrade RR4 CCC
NEOVASC INC: To Participate in HC Wainwright 24th Annual Conference
-------------------------------------------------------------------
Neovasc, Inc.'s management team will be participating in the H.C.
Wainwright 24th Annual Global Investment Conference to be held
September 12-14, 2022, in New York City. Neovasc's President and
Chief Executive Officer, Fred Colen, will be presenting at 1:30 pm
ET on Tuesday, Sept. 13, 2022.
A recording of the presentation will be available in the Investors
section of the Neovasc website at Presentations & Events, and will
be archived for 90 days.
About Neovasc Inc.
Neovasc -- www.neovasc.com -- is a specialty medical device company
that develops, manufactures and markets products for the rapidly
growing cardiovascular marketplace. The Company develops minimally
invasive transcatheter mitral valve replacement technologies, and
minimally invasive devices for the treatment of refractory angina.
Its products include the Neovasc Reducer, for the treatment of
refractory angina, which is not currently commercially available in
the United States (2 U.S. patients have been treated under
Compassionate Use) and has been commercially available in Europe
since 2015, and Tiara, for the transcatheter treatment of mitral
valve disease, which is currently under clinical investigation in
the United States, Canada, Israel and Europe.
Neovasc reported a net loss of $24.89 million for the year ended
Dec. 31, 2021, following a net loss of $28.70 million for the year
ended Dec. 31, 2020. As of March 31, 2022, the Company had $60.05
million in total assets, $16.28 million in total liabilities, and
$43.77 million in total equity.
Vancouver, Canada-based Grant Thornton LLP, the Company's auditor
since 2002, issued a "going concern" qualification in its report
dated March 9, 2022, citing that the Company incurred a
comprehensive loss of $25.2 million during the year ended Dec. 31,
2021. These conditions, along with other matters, raise substantial
doubt about the Company's ability to continue as a
going concern as at Dec. 31, 2021.
NEW ERA: S&P Downgrades ICR to 'B', Outlook Stable
--------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on New Era Cap
LLC to 'B' from 'B+'. At the same time, S&P lowered its rating on
the company's first-lien term loan due in 2027 to 'B+' from 'BB-';
the '2' recovery rating is unchanged, reflecting its expectation
for substantial recovery (70%-90%, rounded estimate: 75%) in the
event of a default.
The stable outlook reflects S&P's view that the global headwear
industry will continue to grow as demand trends are sustained at
least through the next 12 months, and so it expects the company to
maintain free operating cash flow and FFO cash interest coverage
ratios at current levels.
In early August 2022, private equity firm ACON Investments
increased its ownership stake significantly in New Era Cap LLC
through a non-common equity transaction; we treat the non-common
equity units as debt in our calculation of debt, resulting the
significantly higher S&P adjusted leverage and reflecting a more
aggressive financial policy.
S&P Global Ratings now views New Era as a financial
sponsor-controlled company. In August 2022, middle-market private
equity firm ACON Investments (New Era's first institutional
investor) increased its ownership stake significantly from its
initial stake of 15%. While the CEO and company leadership
maintains control, we believe this increase in ACON's ownership
enables it to be highly influential in the decision-making
regarding the company's financial policy and governance, for these
reasons, S&P now view New Era as a sponsor owned and controlled
entity. The current CEO--Chris Koch, a fourth-generation family
member with a 20-year tenure in the role--maintains majority
ownership and will continue as CEO. In conjunction with this
transaction, Major League Baseball, the National Basketball
Association, and the National Football League became the minority
owners in the company.
As a part of this transaction, the company's owners contributed
capital in the form of Class A and Class B non-common equity units.
S&P views the contributed and existing non-common units as a
debt-like obligation and added it to its calculation of adjusted
debt. This is because the LLC agreement allows for extraordinary
distributions to be made that could reduce the capital contribution
of the non-common equity. There is also no contractual
alignment(stapling) of interests between the Class A and B units
and the common equity. As a result, pro forma S&P Global
Ratings-calculated adjusted debt-leverage will be about 8x for the
12 months through June 2022 compared to the mid-1x area when
excluding the non-common equity. Despite the significant
deterioration in our adjusted leverage metrics, S&P forecasted free
operating cash flow generation of over $100 million (more than $50
million after tax distributions) and FFO cash interest coverage of
6x are indicative of a better financial risk assessment than the
adjusted leverage metrics indicate.
S&P said, "We expect New Era's operating performance to remain
strong for the rest of 2022.For the six months ended June 30, 2022,
the company posted a year-over-year revenue increase of 26% and S&P
Global Ratings-adjusted EBITDA growth of 9.6%. The growth stemmed
from price increases and strong demand for the company's products
across all regions as it expands in the lifestyle and fashion
segments of the cap market. The company's continued focus on growth
initiatives, including expanding distribution and incremental
marketing, also contributed to strong operating performance. In the
second quarter, New Era's performance remained largely unscathed by
the generally weaker consumer sentiment that has hurt apparel
peers. We believe this is attributable to its leading position as
the licensed headwear seller for the major league sports in the
U.S. and internationally as consumers shifted their spending to
events and experiences after the pandemic. Its products are
typically associated with these experiences and benefit as
consumers return to in-person sports events. We also believe the
headwear category is performing well as caps and hats are smaller
ticketed purchases compared to other apparel categories, and as the
category leader, New Era's growth continues to be strong.
Therefore, we forecast revenues to grow in mid-teen percentage area
in 2022, albeit at a slower rate in the second half of the year. In
addition, we expect the company's S&P Global Ratings-adjusted
EBITDA margins to remain pressured in 2022 due to increased input
raw material and freight expenses and company's continued
investments to grow its e-commerce capabilities.
"Inflation and a weaker economy remain key risks. Our economists
estimate a 35%-45% chance of a recession within the next 12 months.
Given the reduced consumer activity and increased risk of
recession, we believe that demand for company's products could
decline given the highly discretionary nature of its products.
While not incorporated into our base-case scenario, the company's
revenues and adjusted EBITDA could drop significantly if
deteriorating economic activity or sustained high inflation
translate into eroding consumer confidence and lower demand for the
company's products.
"The stable outlook reflects our view that the global headwear
industry will continue to grow as demand trends are sustained at
least through the next 12 months. As a result, we expect the
company to continue to generate free operating cash flow and FFO
cash interest coverage ratios at current levels."
S&P could lower the ratings again if the company's FFO cash
interest coverage ratio falls well below 2x and free operating cash
flow generation weakens substantially. This would likely result
from material deterioration from its operations or a debt-financed
shareholder return, which could occur if:
-- Consumer trends become unfavorable and the headwear categories
decline rapidly;
-- The company's products fall out of favor with consumers, either
from heightened competition or product design or quality issues;
-- The company loses any of its key sports licenses; or
-- New Era's financial policy becomes more aggressive, either from
further incremental private equity ownership or additional
debt-funded shareholder returns.
ESG credit indicators: E-2, S-2, to G-3 from G-2
S&P said, "Given ACON's significant increase in ownership in New
Era, S&P now view governance factors as a moderately negative
consideration in our credit rating analysis of company. In line
with our view of the majority of rated entities owned by
private-equity sponsors, we view the company's financial risk
profile as aggressive reflecting corporate decision-making that
prioritizes the interests of the sponsor owner. Our assessment also
reflects financial sponsors' generally finite holding periods and
focus on maximizing shareholder returns. We acknowledge that the
company has expanded the board and installed more sophisticated
controls and processes as a part of this transaction."
ESG Factors
Governance – Governance structure
NEWAGE INC: Cash Collateral Access, $16MM DIP Loan OK'd
-------------------------------------------------------
NewAge, Inc. and affiliates sought and obtained entry of an order
from the U.S. Bankruptcy Court for the District of Delaware
authorizing them to use cash collateral and obtain postpetition
financing, on an interim basis.
The Debtors obtained senior secured debtor-in-possession financing
consisting of a senior secured superpriority priming term loan
credit facility in the aggregate principal amount not to exceed $16
million pursuant to the terms and conditions of the Senior Secured
Debtor-in-Possession Term Loan among:
i. the Debtor, NewAge, Inc., as borrower,
ii. each of the Debtors, Ariix LLC, Morinda Holdings, Inc., and
Morinda, Inc., as guarantors, and
iii. DIP Financing, LLC, a Wyoming limited liability company, or
its assignee, as lender.
The DIP Facility will be made available as a multi-draw term loan
to the Debtors upon entry of the Interim DIP Order and satisfaction
of the other conditions set forth in the DIP Loan Documents in an
initial amount equal to $4 million and, upon meeting certain
requirements set forth in the DIP Loan Documents, a second amount
equal to $5 million, and the remainder of the DIP Facility (up to
$7 million) available upon entry of the Final DIP Order and
satisfaction of the other conditions set forth in the DIP Loan
Documents.
The DIP Facility is the product of an extensive and competitive
process. Over the last few years, the Debtors have faced a number
of challenges. In order to address these challenges and provide
additional liquidity, the Debtors retained Houlihan Lokey Capital,
Inc. to evaluate strategic alternatives and financing options.
Although Houlihan began this process by exploring out of court
options, the Debtors' businesses experienced recent significant
adverse shocks, including the global COVID-19 pandemic and supply
chain issues, uncertainty related to business operations in China,
issues in fully integrating numerous brands, changes in management,
and expenses related to an investigation and defense of a potential
violation of the Foreign Corrupt Practices Act. These adversities
have hamstrung the Debtors, straining liquidity and reducing the
profitability of the Debtors' businesses.
The Debtors require the use of cash collateral to permit, among
other things, the orderly continuation of their business, to
maintain business relationships with vendors, suppliers and
customers, to make payroll, to make capital expenditures and to
satisfy other working capital and operational needs.
On March 9, 2022, NA Inc. entered into a Loan and Security
Agreement with East West Bank, which provides for a $12 million
revolving loan facility. As of the Petition Date, the principal
private financing is the Prepetition Credit Facility.
The Prepetition Credit Facility is secured by substantially all
assets of NA Inc. and requires compliance with certain financial
and restrictive covenants. As part of the Prepetition Loan
Agreement, the Prepetition Lender required NA Inc.'s subsidiary,
Tahitian Noni Beverages (China) Co., Ltd., to (a) maintain its
primary depository and operating accounts with East West Bank
(China) Ltd., and (b) maintain the equivalent of at least $13.2
million in the Chinese Accounts.
After the Prepetition Loan Agreement was entered, TNBC entered into
the Tri-Party Pledge Agreement as the pledgor, the Prepetition
Lender as the pledgee, and NA, Inc. as the borrower. Pursuant to
the Tri-Party Pledge, TNBC granted the Prepetition Lender a
security interest in its bank account held by the Prepetition
Lender to secure the Prepetition Credit Facility.
On March 11, 2022, Holdings, Morinda, and non-debtor NewAge
Worldwide, Inc. entered into the Unconditional Guaranty in favor of
the Prepetition Lender, guaranteeing NA, Inc.'s payment under the
Prepetition Loan Agreement.
Also on March 11, 2022, three of the Debtors (Holdings, Morinda,
and Ariix) entered into the Pledge Agreement with the Prepetition
Lender, pledging their equity interests in certain of their
subsidiaries.
Shortly after entering into the Prepetition Loan Agreement, NA Inc.
borrowed the entire $12 million of funding under the Prepetition
Credit Facility. Thereafter, DIP Financing LLC, a Wyoming limited
liability company, or its assignee, became the assignee of the
Prepetition Credit Facility.
NA Inc.'s equity is publicly traded. Holdings and Ariix are wholly
owned by NA Inc., and Morinda is wholly owned by Holdings.
The Prepetition Lender is entitled, pursuant to sections 361 and
363(e) of the Bankruptcy Code and nunc pro tunc to the Petition
Date, to adequate protection of its interests in the Prepetition
Collateral, including the cash collateral, in an amount equal to
the aggregate diminution in value of the Prepetition Lender's
interests in the Prepetition Collateral from and after the Petition
Date. On account of such adequate protection claims, the Debtors
maintains the Chinese Accounts: cash and cash equivalents including
without limitation, all cash, securities and other amounts on
deposit or maintained by the Debtors in any account or accounts
located in the People's Republic of China and held by the
Prepetition Lender to secure the Prepetition Secured Obligations.
The Prepetition Lender holds dominion over the Chinese Accounts and
is granted the Chinese Accounts. Moreover, interest payments are
included in the Approved DIP Budget, further ensuring that the
Prepetition Lender will be adequately protected.
Pursuant to the terms of the DIP facility, the borrower agrees to
comply with these milestones relating to the Chapter 11 Cases:
1. The Petition Date occurs no later than August 30, 2022;
2. The motion seeking approval of the Bidding Procedures and
scheduling a final hearing to approve a Sale, which will be in form
and substance reasonably acceptable to the Lender, is filed with
the Bankruptcy Court no later than the Petition Date;
3. The Interim DIP Order is entered by the Bankruptcy Court no
later than two days after the Petition Date;
4. The Bankruptcy Court holds a hearing to approve the Bidding
Procedures Order no later than 21 days after the Petition Date;
5. The Bidding Procedures Order is entered by the Bankruptcy
Court no later than 21 days after the Petition Date;
6. The Final DIP Order has been entered by the Bankruptcy
Court no later than 30 days after the Petition Date;
7. The deadline for all interested parties to submit their
bids in accordance with the Bidding Procedures Order is set no
later than the date that is 14 days after the confirmation of the
Bidding Procedures Order;
8. The Borrower held and completed the auction pursuant to the
Bidding Procedures Order, if any, no later than the date that is 15
days after the confirmation of the Bidding Procedures Order;
9. The Bankruptcy Court held a hearing to approve the Sale
Order no later than the date that is 17 days after the confirmation
of the Bidding Procedures Order;
10. The Bankruptcy Court entered the Sale Order no later than
the date that is 18 days after the confirmation of the Bidding
Procedures Order; and
11. The Sale is consummated no later than three days after
entry of the Sale Order.
A copy of the motion is available at https://bit.ly/3q2oLOC from
PacerMonitor.com.
A copy of the order is available at https://bit.ly/3BbJUwc from
PacerMonitor.com.
About NewAge, Inc.
NewAge, Inc. is a developer, seller, and distributor of health and
nutritional products which predominantly sells through a sales
network of brand partners.
NewAge, Inc. and its affiliates sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 22-10819)
on August 30, 2022. In the petition signed by Lawrence Perkins,
chief restructuring officer, NewAge, Inc. disclosed $310,902,000 in
assets and $149,447,000 in liabilities.
Judge Laurie Selber Silverstein oversees the case.
NewAge, Inc. tapped Greenberg Traurig, LLP as legal counsel,
SierraConstellation Partners LLC as financial advisor, and Stretto
as claims/noticing agent.
NEWAGE INC: Hits Chapter 11 Bankruptcy to Pursue Sale
-----------------------------------------------------
Utah-based direct-to-consumer health and wellness product
distributor NewAge Inc. filed for Chapter 11 protection Tuesday in
Delaware after defaulting on a secured loan and experiencing the
departure of some of its senior leadership in recent months.
In their initial court filings, NewAge and affiliated entities
Ariix LLC and Morinda Holdings Inc. listed a consolidated debt
amount of $149 million against $310 million of assets. The company
said in an Aug. 8, 2022 regulatory filing that it had defaulted on
a $12 million secured credit facility issued by East West Bank by
failing to provide current financial reports.
Sale Process
According to a statement, NewAge and certain of its subsidiaries,
Ariix LLC, Morinda Holdings, Inc., and Morinda, Inc., each filed a
voluntary petition for relief under chapter 11 of the United States
Bankruptcy Code in the United States Bankruptcy Court for the
District of Delaware, thereby commencing Chapter 11 cases to
facilitate a value-maximizing sale process.
The Company has determined that the Chapter 11 process is the most
expeditious way to pursue a strategic transaction and protect and
preserve value for all stakeholders. The Company, with the help of
its advisors, has secured a commitment for a "debtor in possession"
financing facility of $16.0 million, subject to court approval.
This capital, together with revenue generated from ongoing
operations, will provide liquidity to support the Company through
the sale process.
The Company also is filing a motion to obtain court approval of an
asset purchase agreement with a "stalking horse" bidder, DIP
Financing, LLC. The Company intends to pursue a sale of
substantially all its assets as a going concern in one or more
transactions. This transaction is subject to court approval and any
higher or better offers as part of the Company’s ongoing auction
process.
The Debtors' management team will continue to operate the business
as "debtors in possession" under the jurisdiction of the Bankruptcy
Court and in accordance with the applicable provisions of the
Bankruptcy Code and orders of the Bankruptcy Court. The Debtors are
seeking approval of a variety of "first day" motions containing
customary relief intended to enable the Company and its
subsidiaries to continue operations in the ordinary course. The
Debtors intend to pay vendors and partners under customary terms
for goods and services received on or after the filing date and to
pay employees in the usual manner and continue their primary
benefits without disruption. The Debtors expect to receive court
approval for all of these routine requests.
Sale to Wadsworth
As part of the Debtors' marketing efforts to sell substantially all
of their assets, they began negotiations with John Wadsworth, who
has worked as an independent sales representative of the Enterprise
since 1998 -- Mr. Wadsworth has never been a director or officer of
any Debtor and has less than 0.4% of the outstanding shares of NA,
Inc. Mr. Wadsworth is a principal of DIP Financing, LLC.
Importantly, the Stalking Horse has agreed to enter into a Senior
Secured Debtor-in-Possession Term Loan Agreement and extend
$16,000,000 in debtor-in-possession financing as well as purchase
the EWB Credit Facility to help the Debtors conserve value as they
run a sale process in the Chapter 11 Cases. Moreover, the Stalking
Horse intends to credit bid the full amount of the DIP Facility and
EWB Credit Facility and serve as the stalking
horse for the sale for substantially all of the Debtors' assets.
About NewAge, Inc.
NewAge Inc. (Nasdaq: NBEV) is a purpose-driven firm dedicated to
inspiring the planet to Live Healthy. The Utah-based Company
commercializes a portfolio of organic and healthy products
worldwide primarily through a direct-to-consumer (D2C) route to
market distribution system across more than 50 countries. The
company competes in three major category platforms including health
and wellness, inner and outer beauty, and nutritional performance
and weight management -- through a network of exclusive independent
Brand Partners, empowered with the leading social selling tools and
technology available worldwide. On the Web:
http://www.NewAgeGroup.com/
NewAge Inc. and certain of its subsidiaries, Ariix LLC, Morinda
Holdings, Inc., and Morinda, Inc., sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 22-10819)
on August 30, 2022.
NewAge reported total assets of $310,902,000 against total
liabilities of $149,447,000 as of the bankruptcy filing.
The Debtors tapped GREENBERG TRAURIG, LLP as bankruptcy counsel and
SIERRACONSTELLATION PARTNERS LLC as financial advisor. HOULIHAN
LOKEY CAPITAL, INC., conducted the prepetition marketing process
for the Debtors. STRETTO is the claims agent.
NEXTEER AUTOMOTIVE: S&P Downgrades ICR to 'BB+', Outlook Stable
---------------------------------------------------------------
S&P Global Ratings lowered its long-term issuer credit rating on
Nexteer Automotive Group Ltd. to 'BB+' from 'BBB-'.
The stable outlook reflects S&P's expectation that Nexteer will
steadily increase its revenue and margin over the next 12 months,
while maintaining its solid market position and healthy balance
sheet.
Nexteer's profitability is likely to remain significantly below the
industry average over the next 12-24 months, suggesting weaker
business strength. High raw material prices as well as rising
logistics and labor costs have dented the company's earnings.
Nexteer can only partially pass through the incremental costs to
original equipment manufacturers (OEMs), and with a significant
time lag. Meanwhile, supply-chain challenges, including persistent
semiconductor shortage, the ongoing Russia-Ukraine conflict, and
pandemic containment measures in China, have disrupted the
operations of the company and its OEM customers, hindering
operating efficiency.
S&P therefore forecasts Nexteer's adjusted EBITDA margin will hit a
trough (on an annual basis) of 4.2%-4.7% in 2022. The margin could
tick up to 5.0%-6.0% in 2023 on subsiding supply-chain disruptions
and softer commodity prices. Nevertheless, the margin is unlikely
to revert to the pre-pandemic level of 9% before 2025.
Nexteer's small scale and high customer concentration will weigh on
its margin recovery over the next 12 months. The top-three
customers contributed 76% to the company's revenue in 2021.
Production disruption at any of these customers will significantly
hit its operations and margin. Moreover, about 60% of Nexteer's
revenue comes from North America, which sees much higher
inflationary pressure than other regions. As such, the company's
profitability is less resilient than peers'.
Nexteer's profitability has been declining significantly since the
inception of the pandemic in 2020. The company's adjusted EBITDA
margin dropped to 5.9% in 2021 and further to 3.9% in the first
half of this year, from 7.8% in 2020. This is because of elevated
input costs and operation inefficiencies caused by pandemic-related
disruptions.
Nexteer's good market position and healthy new business bookings
support revenue growth. S&P expects the company to maintain its
position as one of the top three suppliers of electric power
steering (EPS) globally. Nexteer has been improving its technology
capability by spending more than 8% of its revenue on research and
development (R&D) over the past three years. The company can
therefore roll out innovative products and improved technologies,
allowing it to better capture demand for new energy solutions and
autonomous driving. This supported Nexteer's launch of 17 major
programs in the first half of 2022 across multiple product lines.
S&P said, "We forecast Nexteer's revenue growth will dip to 6%-9%
in 2022 from 10.8% in 2021, owing to continued supply constraints.
Revenue growth should pick up to 8%-12% in 2023, slightly above our
assumption of an 8%-10% increase in global light-vehicle
production. The company's decent market position and stable
customer relationships will underpin this. A steady order backlog
also provides some visibility to its revenue growth over the next
few years. Order backlog reached US$26.8 billion as of end-2021,
equivalent to 8x Nexteer's revenue in 2021.
"We expect Nexteer to maintain a strong balance sheet that cushions
against industry volatility. The company's free operating cash flow
(FOCF) turned to a small deficit in 2021 on declining profits and
increasing working capital needs. We believe Nexteer can generate a
marginally positive FOCF over the next 12-24 months, owing to
disciplined investments, easing supply chain challenges, and
improving working capital management. A recovery in the auto market
will result in faster restocking by auto OEMs and accelerating
inventory turnover for Nexteer. This could help to lower the
company's working capital outflow to US$10 million-US$30 million in
2022 and 2023, from US$42 million in 2021. With low debt of US$85
million, Nexteer will likely remain in net cash over the next two
to three years, a position it has held since 2018.
"The stable outlook reflects our view that Nexteer will continue to
expand its business and improve profitability amid a global auto
market recovery that we expect over the next 12-24 months. The
outlook is also underpinned by the company's competitive technology
offerings, which allow it to maintain a stable market share and
customer relationships. We also expect the company to maintain a
net cash position over the next one to two years.
"We may lower the rating if Nexteer's debt-to-EBITDA ratio
deteriorates and approaches 2.0x sustainably. This could be a
result of: (1) significant cash burn on operational inefficiencies;
or (2) a material deficit in FOCF due to large debt-funded
acquisitions or much higher working capital outflow than we
expect."
S&P may upgrade Nexteer if the company's EBITDA margin recovers to
well above 9.0%, while it maintains its low leverage. This may
happen if:
-- Raw material and logistics costs drop materially; or
-- Global light vehicle production volume grows at a much higher
rate than we forecast.
Environmental, Social, And Governance
ESG credit indicators: E-3, S-2, G-3Environmental factors are a
moderately negative consideration in our credit rating analysis of
Nexteer. This reflects above-average energy transition risks in our
assessment of auto industry risks. Nexteer mainly focuses on
steering systems, which do not face material disruption risks amid
the industry's electrification trend. The company is working
closely with major customers to deliver products for their new
electric vehicle models. S&P expects it to maintain substantial R&D
spending and capital expenditure to enhance its technological
competency in electrification and autonomous driving.
Regarding governance factors, Nexteer is exposed to potential
reputation damage and credit impact arising from warranty and
product liability claims for quality deficiencies. However, S&P
does not observe significant product deficiencies in the company's
products in recent years. Social factors have an overall neutral
influence on its credit rating analysis of Nexteer.
NIKKYO LLC: Seeks Cash Collateral Access
----------------------------------------
Nikkyo, LLC, dba Deluxe Systems of Florida, asks the U.S.
Bankruptcy Court for the Middle District of Florida, Tampa
Division, for authority to use cash collateral retroactive to the
petition date and provide adequate protection.
The Debtor requires the use of cash collateral to maintain business
operations and preserve value of the estate.
Byline Bank may claim blanket liens against the Debtor's assets.
The Debtor estimates that the bank's collective claims are secured
by $485,601. The Secured Creditor Assets include $480,889 in cash,
inventory, and accounts receivables which the Debtor expects to
collect.
As adequate protection for the use of cash collateral, the Debtor
offers the Secured Creditor:
a. Post-petition replacement liens on the Secured Creditor
Assets to the same extent, validity, and priority as existed
pre-petition;
b. The right to inspect the Secured Creditor Assets on 48
hours notice, provided that said inspection does not interfere with
the operations of the Debtor; and
c. Copies of monthly financial documents generated in the
ordinary course of business and other information as the Secured
Creditor reasonably request with respect to the Debtor's
operations.
A copy of the motion is available at https://bit.ly/3KKBKy3 from
PacerMonitor.com.
About Nikkyo, LLC
Nikkyo, LLC offers racking, shelving, and modular storage systems
for safe, efficient, and effective control of material handling
requirements.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 22-03599) on September
1, 2022. In the petition signed by Saul Ackovitz, managing member,
the Debtor disclosed $589,255 in assets and $2,015,611 in
liabilities.
Buddy D. Ford, Esq. at Buddy D. Ford, P.A. is the Debtor's
counsel.
NJ CITY UNIVERSITY: Fitch Cuts IDR to 'BB+', On Watch Negative
--------------------------------------------------------------
Fitch Ratings has downgraded New Jersey City University's (NJCU)
Issuer Default Rating (IDR) and approximately $136 million
outstanding (FYE 2021) New Jersey Educational Facilities Authority
(NJEFA) bonds, series' 2007F, 2010G, 2015A, 2016D, 2021A and 2021B,
issued on behalf of NJCU, to 'BB+' from 'BBB-'.
The IDR and bonds have been placed on Rating Watch Negative (RWN).
SECURITY
Outstanding NJCU bonds issued by NJEFA are general obligations of
the university. The series 2021A/B financing also includes a first
lien pledge on the university's net tuition and certain student
fees (no room, board or student wellness fees). This pledge was
also extended to the prior general obligation bonds on a parity
basis through a security and intercreditor agreement.
The series 2021A/B bonds also feature a 35 days cash liquidity
covenant beginning in fiscal 2023 and cash-funded debt service
reserve funds.
A subordinate lien on net tuition and certain fees is granted to
the university's long-term lease for a separately-financed
performing arts center.
KEY RATING DRIVERS
Analytical Conclusion
The downgrade to 'BB+' with RWN reflects NJCU's continued erosion
in operating performance and liquid resources in fiscal 2022
resulting from an estimated deficit of $13.8 million and an
accounting adjustment. NJCU's board declared a State of Emergency
at its June 27, 2022 board meeting, highlighting a continued
structural deficit that without corrective action, is anticipated
to produce a budget shortfall of more than $20 million in FY23,
which could potentially deplete reserves.
An interim President and interim Chief Financial Officer (who has
experience managing public and private university turnaround
efforts) is in place, an interim control budget was adopted for
July 1, 2022-Sept. 30, 2022, and additional state funding and
support has been requested. Further, preliminary estimates for Fall
2022 enrollment fell short of expectations of stabilization;
instead, undergraduate enrollment is expected to drop another 8%,
and graduate enrollment is expected to drop 5%, from already
depressed Fall 2021 enrollment levels.
Fitch acknowledges that NJCU requires financial flexibility to
reduce expenses, and until structural operating balance is achieved
and/or external support is acquired, available fund and
unrestricted liquidity levels are of elevated concern. Thus far,
NJCU has made all its financial commitments and indicates the next
bond payment is sufficiently addressed in the interim budget
enacted by the board. NJCU's role as a niche, Hispanic Serving
Institution and Minority Serving Institution within the state of
New Jersey remains an important consideration, as state support is
a key (and historically stabilizing) contributor to operating
revenue.
Fitch expects to complete its review within 90 days, following a
meeting with management and the receipt of updated financial,
operating, and strategic information. Given the heightened risks
facing the university, a multiple notch downgrade is possible.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Any material reduction or withdrawal of support from the state
of New Jersey (A+/POS), including support for pension and
other benefit costs, or reduction in other grants and
contracts;
-- Inability of the university to implement its interim control
budget or carry out a plan to generate structural balance in
FY23 and beyond.
-- Continued attrition of the student population or net student
revenues.
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Given NCJUs long-term structural imbalances, declining
fundamentals and weakened liquidity, a positive rating
action/upgrade is unlikely at this time;
-- Nevertheless, extraordinary support from the state of New
Jersey or other external party, together with the
implementation of a viable restructuring plan, may stabilize
the rating.
CREDIT PROFILE
Opened in 1929 and granted university status in 1998, NJCU is one
of 11 four-year public universities in the state of New Jersey. Its
primary campus is located in Jersey City, NJ with an additional
beachside campus in Fort Monmouth, NJ that opened in August 2021.
During the 2021-22 academic year, NJCU served approximately 6,900
(headcount, 5,800 full-time equivalent) students, offering
baccalaureate, graduate and doctoral degrees in the arts, sciences,
business, professional studies and education.
NJCU is a primarily commuter institution with a large percentage
minority, first generation in college students, and attracts the
majority of its students from surrounding counties. NJCU is also
partnering with is host municipality, Jersey City, on a
public-private redevelopment project that will include a new
performing arts center. NJCU is accredited by Middle States
Commission on Higher Education with the next scheduled full
evaluation in 2027-2028. For fiscal 2021, NJCU reported a negative
-$146.8 million unrestricted net position, of which $144.9 million
reflects its net pension liability as reported under GASB 68
reporting requirements starting in fiscal 2015.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING
The principal sources of information used in the analysis are
described in the Applicable Criteria.
PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
Rating Prior
------ -----
New Jersey City
University (NJ)
LT IDR BB+ Downgrade BBB-
New Jersey City University
(NJ) /General Revenues/1LT LT BB+ Downgrade BBB-
OAKVIEW FARMS: Taps Tran Singh as Legal Counsel
-----------------------------------------------
Oakview Farms, LLC received approval from the U.S. Bankruptcy Court
for the Southern District of Texas to hire Tran Singh, LLP to serve
as legal counsel in its Chapter 11 case.
The firm's services include:
a. analyzing the Debtor's financial situation;
b. advising the Debtor regarding its rights, duties and
powers;
c. representing the Debtor at all hearings and other
proceedings;
d. preparing and filing schedules of assets and liabilities,
statements of affairs, motions and other legal papers;
e. representing the Debtor at any meeting of creditors;
f. representing the Debtor in all proceedings before the
bankruptcy court and in any other judicial or administrative
proceeding where the rights of the Debtor may be litigated or
otherwise affected;
g. preparing and filing a disclosure statement and Chapter 11
plan of reorganization;
h. assisting the Debtor in analyzing the claims of the
creditors and in negotiating with such creditors; and
i. assisting the Debtor in any matters relating to its
bankruptcy case.
Tran Singh's customary rates generally range from $350 to $475 per
hour for attorneys and $85 to $95 per hour for paraprofessionals.
Susan Tran Adams, Esq., and Brendon Singh, Esq., the attorneys
primarily responsible for this engagement, charge $450 per hour and
$475 per hour, respectively.
Tran Singh was paid a retainer in the amount of $45,000 and will
receive reimbursement for work-related expenses.
As disclosed in court filings, Tran Singh is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Susan Tran, Esq.
Brendon Singh, Esq.
Tran Singh, LLP
2502 La Branch Street
Houston, TX 77004
Telephone: (832) 975-7300
Facsimile: (832) 975-7301
Email: Stran@ts-llp.com
Bsingh@ts-llp.com
About Oakview Farms
Oakview Farms, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Texas Case No. 22-31588) on June 7,
2022. At the time of the filing, the Debtor listed as much as $10
million in both assets and liabilities.
The case is assigned to Judge Eduardo V. Rodriguez.
Susan Tran Adams, Esq., at Tran Singh, LLP is the Debtor's counsel.
OSG GROUP: Gets Court Okay of Prepackaged Bankruptcy Plan
---------------------------------------------------------
James Nani of Bloomberg Law reports that marketing and billing
services business OSG Group Holdings Inc. won court approval for a
pre-packaged bankruptcy reorganization that hands majority
ownership to creditors and pays unsecured creditors in full.
US Bankruptcy Judge John Dorsey in Delaware on Monday, August 29,
2022, tentatively approved an amended Chapter 11 plan that hands
second lien lenders OSG common shares and a stake in new,
convertible equity. The company owed $168.8 million in second lien
debt—the majority of which is held by Pemberton Strategic Credit
Holdings, according to court documents.
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.
OUTPUT SERVICES: Moody's Lowers PDR to D-PD Amid Bankruptcy Filing
------------------------------------------------------------------
Moody's Investors Service downgraded Output Services Group, Inc.'s
("OSG") probability of default rating to D-PD from Caa2-PD
following the company's announcement of its voluntary prearranged
Chapter 11 proceeding. Subsequent to the action, Moody's will
withdraw all of its ratings for OSG because of the company's
bankruptcy filing.
Governance considerations were considered a key driver of the
downgrade because of the company's voluntary Chapter 11 filing
after entering into a restructuring support agreement (RSA) with
holders of over 88.7% of the first lien credit facilities debt and
100% of the second lien term loan debt.
Downgrades:
Issuer: Output Services Group, Inc.
Probability of Default Rating, Downgraded to D-PD from Caa2-PD
Outlook Actions:
Issuer: Output Services Group, Inc.
Outlook, Remains Negative
RATINGS RATIONALE
On August 8, 2022, OSG Group Holdings, Inc. and its subsidiaries
including Output Services Group, Inc. had its voluntary prearranged
Chapter 11 filing submitted to the U.S. Bankruptcy Court. The
company's RSA amends the company's first lien credit facilities
agreement to extend the maturity dates on the revolver and term
loan to 2025 and 2026, respectively. The amendment also increased
the interest rate on the first lien facilities and allows for a
portion to be paid in kind ("PIK"). At the same time, the company's
second lien term loan lenders agreed to an exchange of 100% of the
term loan debt for a combination of approximately $44.3 million of
unsecured subordinated mezzanine debt due 2027 and an equity
interest in the reorganized company. As part of the restructuring,
the existing second lien lenders contributed $70 million in new
capital consisting of new equity and an additional $25 million in
unsecured subordinated mezzanine debt. Additionally, the company's
$5 million unsecured note and $21.2 million secured note to
Aquiline Capital Partners were extinguished and equitized,
respectively, as part of the transaction. The pro forma equity
holdings including preferred equity conversion upon restructuring
will be split between affiliates of Pemberton Capital Advisors
(48.1%), Apogem Capital (30.4%), and Aquiline Capital Partners
(21.5%).
The principal methodology used in this rating was Business and
Consumer Services published in November 2021.
Output Services Group, Inc., headquartered in Ridgefield Park, New
Jersey, provides printing and mailing of customer invoices and
bills, critical communications and customer engagement solutions
services to multiple end markets including financial services,
healthcare, education, telecom, HOA/property management and other
accounts receivable management organizations in the US.
PACIFIC RIM: Chapter 15 Case Summary
------------------------------------
Chapter 15 Debtor: Pacific Rim Global Growth Limited
Jayla Place, Wickhams Cay 1
Road Town, Tortola VG1110
British Virgin Islands
Foreign Proceeding: Eastern Caribbean Supreme Court,
High Court of the BVI,
Commercial Division
Chapter 15 Petition Date: August 31, 2022
Court: United States Bankruptcy Court
Southern District of Florida
Case No.: 22-16812
Foreign Representatives: Angela Barkhouse
Helen Janes
Carl Jackson
142 Seafarers Way
George Town, Grand Cayman KY1-9006
Cayman Islands
Foreign
Representatives'
Counsel: Gregory S Grossman, Esq.
Juan J. Mendoza, Esq.
Jennifer Mosquera, Esq.
SEQUOR LAW, P.A.
1111 Brickell Avenue, Suite 1250
Miami, FL 33131
Tel: (305) 372-8282
Email: ggrossman@sequorlaw.com
jmendoza@sequorlaw.com
jmosquera@sequorlaw.com
Estimated Assets: Unknown
Estimated Liabilities: Unknown
A full-text copy of the Chapter 15 petition is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/YWFL4BI/Pacific_Rim_Global_Growth_Limited__flsbke-22-16812__0001.0.pdf?mcid=tGE4TAMA
PACKABLE HOLDINGS: Sept. 9 Deadline Set for Panel Questionnaires
----------------------------------------------------------------
The United States Trustee is soliciting members for committee of
unsecured creditors in the bankruptcy case Packable Holdings, LLC,
et al.
If a party wishes to be considered for membership on any official
committee that is appointed, it must complete a questionnaire
available at https://bit.ly/3Qk8WNH and return by email it to
Timothy Fox -- Timothy.Fox@usdoj.gov -- at the Office of the
United States Trustee so that it is received no later than 4:00
p.m., on Sept. 9, 2022.
If the U.S. Trustee receives sufficient creditor interest in the
solicitation, it may schedule a meeting or telephone conference for
the purpose of forming a committee.
About Packable Holdings LLC
Packable Holdings LLC -- https://www.packable.com/ -- is a leading
multi-marketplace e-commerce enablement platform.
Packable Holdings LLC and five affiliates sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No.
22-10797) on August 29, 2022. In the petition filed by Maria
Harris, as chief legal officer, the Debtor reported assets and
liabilities between $100 million and $500 million each.
Cooley LLP and Potter Anderson & Corroon LLP serve as the Debtors'
attorneys. Alvarez and Marsal North America, LLC, is the financial
advisor. Epiq Corporate Restructuring, LLC, is the claims agent.
Hilco Merchant Resources, LLC, is the liquidation agent.
PARAMOUNT GLOBAL: Fitch Affirms BB+ Rating on Jr. Sub. Debt
-----------------------------------------------------------
Fitch Ratings has affirmed Paramount Global's (Paramount) and CBS
Broadcasting Inc.'s Long-Term Issuer Default Rating (IDR), senior
unsecured issue ratings at 'BBB', and junior subordinated issue
ratings at 'BB+'. Fitch has also affirmed Paramount's Short-Term
IDR and CP ratings at 'F2'. The Rating Outlook is Stable.
The ratings reflect Paramount's strong content and distribution
portfolio. Additionally, the company's significant debt reduction
since Viacom Inc. and CBS Corporation remerged in 2019 more than
offsets Fitch's expectation that Fitch-calculated leverage exceeds
negative sensitivities into 2024 due to margin compression from
increased content spend and Fitch's expectation for an ad recession
in late 2022 and into 2023.
KEY RATING DRIVERS
Liquidity: Paramount has significant near-term internal cash
requirements to fund content and platform investment for its
direct-to-consumer (DTC) platforms, although much of their content
is remixed across its linear and digital platforms. As of June 30,
2022, they had cash balances of $4.0 billion which should be
adequate to fund any funding shortfalls. A large portion of its
cash came from capital raising efforts over the last 18 months that
included common and preferred equity issuance along with asset
sales, which Fitch views positively as they did not weaken credit
metrics.
Paramount is looking to raise additional liquidity with the
announced $2.2 billion sale of Simon & Schuster. However, the sale
was delayed following a November 2021 U.S. Department of Justice
lawsuit citing industry consolidation and monopsony concerns. Fitch
notes the U.K. regulator approved the acquisition. The company and
Penguin Random House, the acquiror, expect to continue vigorously
defending the lawsuit. If the transaction is not approved as
currently structured, Fitch expects Paramount to either make
adjustments that would allow the sale's completion or reopen the
sale process given the competitive auction that preceded the
current transaction.
Debt Reduction and Leverage: Fitch takes considerable comfort from
Paramount's debt reduction efforts. Debt has been reduced to $16.4
billion at June 30, 2022 (excluding $1 billion of preferred equity
which Fitch expects to convert to common equity by maturity), down
from $19.3 billion at Dec. 31, 2021. Paramount's Fitch-calculated
leverage further benefits from $825 million of equity credit for
its junior subordinated debenture issuances.
However, despite these efforts, Fitch-calculated leverage is
expected to remain outside Fitch's sensitivities into 2024 due to
the heightened near-term content spend coupled with Fitch's
expectations for an advertising recession in late 2022 and into
2023.
Advertising Market: Advertising spending in 2021 experienced
significant growth as the market snapped back from the pandemic's
effects faster and stronger than Fitch's expectations. However,
despite a strong start to 2022, certain market segments have begun
to show signs of weakening in line with the overall economy.
Fitch is modelling an advertising recession starting in late 2022
and continuing into 2023, leading to low to mid-single-digit
revenue declines, followed by a recovery into 2024 in line with
historical trends. However, given the current political landscape,
Fitch expects record political advertising in 2022 and 2024, with
2024 also benefitting from the presidential election, which should
minimize the aggregate decline.
Operating Headwinds: Paramount will continue to face significant
operating headwinds. Uncertainty remains around the friction
between theatrical and DTC distribution strategies. The company has
publicly restated its commitment to a blended release schedule
across multiple platforms, including a 45-day theatrical release
window on certain film content. The viewership environment
continues to fragment amid a growing number of DTC offerings and
cord-cutting acceleration. Near-term costs will increase to fund
Paramount+'s content and infrastructure requirements. Finally,
Paramount needs to grow streaming subscribers fast enough to offset
industry-wide linear bundle weakness.
Strong Asset Portfolio: Paramount's iconic brands include
Paramount+, the CBS Television Network, SHOWTIME Network, Paramount
Pictures, the CBS and Paramount Television Studios, Smithsonian
Channel and Pluto TV. Paramount+ is Paramount's primary DTC
offering and a key growth strategy component. Although Paramount
also has strong cable network brands, including Nickelodeon, MTV,
Comedy Central and BET, the overall multichannel video programming
distributor (MVPD) landscape remains stressed.
The company has a steady stream of successful television
programming that kept CBS network number one in prime time for more
than 14 years, several film franchises and a fairly robust
programming library. CBS's broad sports programming generates
significant audience loyalty with the rights to certain PGA
tournaments, the BIG 10 and the UEFA Champions League through 2030,
NCAA March Madness through 2032, certain NFL games through 2033 and
annual rights to more than 1,400 soccer matches.
DTC Importance: DTC offerings will be critical components of
content aggregators' long-term viability as MVPDs continue shedding
subscribers. Paramount recognized the need to offset the linear
bundle's increasing stress by pivoting to streaming earlier than
other traditional media companies. Fitch views scale and content
investment as prerequisites for DTC success in general and several
competitors are part of larger, better capitalized diversified
conglomerates. With that said, the growth prospects of DTC services
currently available in the market could be hindered by viewers'
willingness and ability to subscribe to multiple services.
Paramount+ offers news, sports and exclusive and library content.
Global streaming subscribers grew to almost 64 million at June 30,
2022 from 15.9 million in 1Q19, while Pluto TV grew global monthly
active users to almost 70 million from 15.7 million. As a result,
Paramount increased its global streaming subscriber goal to 100
million by 2024, from its original goal 65 million to 75 million.
Fitch notes the company reached the low end of its original goal
almost two years ahead of schedule.
Capital Allocation: Fitch expects Paramount to focus most of its
FCF internally to fund increased content production and acquisition
for distribution over its platforms and Paramount+'s international
infrastructure buildout. The company is expected to reduce the
amount of content licensing to external parties, instead
redirecting most of this effort internally. Paramount is expected
to continue returning capital to shareholders through dividends
while also repaying debt.
DERIVATION SUMMARY
Paramount is well-positioned within the rating reflecting its scale
and broad portfolio of media assets, the strength of its brands and
the early success of Paramount+. The company is less levered than
Warner Bros. Discovery, Inc. (BBB-/Stable), created from the April
2022 merger of Discovery Communications, Inc. and Warner Media, and
lacks the size and diversification of investment-grade peers such
as The Walt Disney Company (A-/Stable) and Comcast Corporation
(A-/Stable). Paramount's ratings are also more heavily weighted
toward cyclical advertising revenues than higher-rated peers.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within the Rating Case for the Issuer
Include:
-- FY22 in line with company expectations. While overall
advertising revenues ex-political are expected to continue
slowing in 2H22, in line with Fitch's overall segment
expectations, historic political spending levels coupled with
a strong upfront are expected to mask the decline;
-- Fitch expects an advertising recession in 2023, but the
negative revenue drag should be offset by continued DTC
subscription growth and continued filmed entertainment
improvement;
-- Content costs continue to increase as the company serves
growing internal programming needs, leading to negative DTC
EBITDA over the rating horizon. However, DTC's negative EBITDA
peaks in 2023, in line with company estimates, and then
declines significantly thereafter;
-- Total EBITDA in 2023 is also hampered by the ad recession
before snapping back in 2024, in line with historical post-
recession sector performance and aided by another historic
year of political spending;
-- Common dividends increase annually. Dividends on the Mandatory
Convertible Preferred Stock are made through 1Q24 as shares
convert to common shares on April 1, 2024, the last mandatory
conversion date;
-- Simon and Schuster's sale closes in 2023, as Fitch assumes
either the current deal closes or, if the U.S. Department of
Justice (DOJ) stops the current sale, the company reopens the
auction process. Net sale proceeds are used for debt
repayment, reducing Fitch-calculated leverage below 4.0x in
2023 despite the dual drag of the ad recession and negative
DTC EBITDA;
-- Small tuck-in acquisitions annually over the rating horizon;
-- Fitch-calculated total leverage declines below 3.00x in 2024
and 2.75x by 2025.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Fitch-calculated total leverage, measured as total debt with
equity credit/EBITDA, sustained below 2.5x through the
adoption of a more conservative financial policy;
-- Paramount will need to demonstrate its operating profile can
sustain itself amid ongoing competitive pressures, changing
media consumption patterns and evolving technology platforms.
Factors that could, individually collectively, lead to negative
rating action/downgrade:
-- Weaker operating performance or discretionary management
actions cause total leverage to remain above 3.5x in the
absence of a strong commitment to reduce leverage.
LIQUIDITY AND DEBT STRUCTURE
Adequate Liquidity: Paramount had $4.0 billion in cash and full
availability under its $3.5 billion revolving credit facility which
matures in January 2025. The company had no CP outstanding and $25
million in borrowings under its $300 million Miramax credit
facility maturing in April 2023.
Paramount has taken several actions over the 18 months ended June
30, 2022 to bolster its liquidity without weakening credit metrics.
During 2021, they issued $2.7 billion in common and preferred
equity and sold their Blackrock headquarters for $760 million. In
March 2022, they issued $1 billion of junior subordinated
debentures due 2062, with net proceeds used to redeem its $520
million junior subordinated debentures due February 2057 (Fitch
assigns 50% equity credit to both issues) and increase cash
balances.
During that same period, Paramount used a portion of its cash
position to redeem all or a portion of $4.4 billion of notes
maturing from 2022 through 2025. As a result, the company has
minimal maturities over the rating horizon with $175 million due in
2023 and $555 million in 2025, excluding the required conversion to
common equity of the $1 billion mandatory convertible preferred
stock in 2024. In addition, Fitch-calculated total debt was reduced
to $15.5 billion at June 30, 2022 (adjusted for the 50% equity
credit assigned to the company's junior subordinated debentures and
100% equity credit assigned to the mandatory convertible preferred
shares).
Future non-operating liquidity sources include proceeds from the
sale of Simon & Schuster, although the timing is unknown given the
U.S. DOJ's challenge. As such, Fitch assumes the transaction's
closing is delayed until 2023, as it expects the company to seek
other buyers if the current proposed transaction is not approved.
Although the company has not made any statements about expected use
of proceeds, Fitch assumes net sale proceeds are used to repay
debt.
Paramount's revolver has one financial maintenance covenant, a 4.5x
maximum consolidated total net leverage ratio, tested at the end of
each quarter through June 2024, at which point it returns to a
consolidated gross leverage ratio. Paramount stated it met this
covenant as of June 30, 2022 but did not disclose actual levels.
ISSUER PROFILE
Paramount is a global diversified media and entertainment company
providing scripted and unscripted content across multiple linear
and digital distribution platforms.
ESG CONSIDERATIONS
Paramount Global has an ESG Relevance Score of '4' for Group
Structure due to related party transactions with NAI, which has a
negative impact on the credit profile, and is relevant to the
rating[s] in conjunction with other factors.
Paramount Global has an ESG Relevance Score of '4' for Governance
Structure due to National Amusements, Inc.'s (NAI) ownership and
voting position and resultant board independence issues, which has
a negative impact on the credit profile, and is relevant to the
rating[s] in conjunction with other factors.
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
Rating Prior
------ -----
Paramount Global LT IDR BBB Affirmed BBB
ST IDR F2 Affirmed F2
senior unsecured LT BBB Affirmed BBB
junior subordinated LT BB+ Affirmed BB+
senior unsecured ST F2 Affirmed F2
CBS Broadcasting, Inc. LT IDR BBB Affirmed BBB
senior unsecured LT BBB Affirmed BBB
PARETEUM CORP: Committee Taps Sidley Austin as Legal Counsel
------------------------------------------------------------
The official committee representing unsecured creditors of Pareteum
Corporation and its affiliates received approval from the U.S.
Bankruptcy Court for the Southern District of New York to hire
Sidley Austin, LLP as its legal counsel.
The firm's services include:
(a) the administration of the Debtors' Chapter 11 cases and
the exercise of oversight with respect to the Debtors' affairs;
(b) the preparation of legal papers;
(c) the review and analysis of operating reports, bankruptcy
schedules and legal papers filed with the court;
(d) appearances in bankruptcy court, participation in
litigation as a party in interest, and participation at statutory
meetings of creditors;
(e) the investigation and analysis of any claims against
non-debtor affiliates and management;
(f) the negotiation, formulation, drafting, and confirmation
of any plan of reorganization or liquidation and matters related
thereto;
(g) the negotiation and evaluation of the use of cash
collateral, any proposed debtor-in-possession financing, and any
other potential financing alternatives;
(h) the evaluation of any proposed restructuring support
agreement and any other potential alternatives;
(i) the analysis of any proposed employee compensation,
incentive and retention payment programs, and evaluation of the
propriety of those programs;
(j) the investigation of, among other things, unencumbered
assets, liabilities, financial condition of the Debtors, prior
transactions, and operational issues concerning the Debtors that
may be relevant to the cases;
(k) the evaluation, negotiation and formulation of any
proposed sale of the Debtors' assets;
(l) communications with the committee's constituents; and
(m) the performance of all of the committee's duties and
powers under the Bankruptcy Code and the Bankruptcy Rules.
Sidley's billing rates range from $660 per hour for new associates
to $1,900 per hour for senior partners and senior counsel. Its
rates for paralegals range from $375 to $525 per hour.
The firm will receive reimbursement for work-related expenses.
Sidley and the committee have agreed to a $50,000 one-time
reduction of the firm's total fees for this engagement.
Michael Burke, Esq., a partner at Sidley, disclosed in a court
filing that his firm is a "disinterested person" within the meaning
of Section 101(14) of the Bankruptcy Code.
Sidley can be reached at:
Michael G. Burke, Esq.
Sidley Austin, LLP
787 Seventh Avenue
New York, NY 10019
Phone: +1 212 839 6742
Email: mgburke@sidley.com
About Pareteum Corporation
Pareteum Corporation is a cloud software communications platform
company which provides communications platform-as-a-service (CPaaS)
solutions offering mobility, messaging, and connectivity and
security services and applications. It has operations in North
America, Latin America, Europe, Middle East, Africa, and the
Asia-Pacific region.
Pareteum Corporation and its affiliates sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No.
22-10615) on May 15, 2022. In the petition signed by Laura W.
Thomas, interim chief financial officer, Pareteum Corporation
disclosed $52,043,000 in assets and $10,486,000 in liabilities.
Judge Lisa G. Beckerman oversees the cases.
The Debtors tapped Togut, Segal & Segal, LLP as bankruptcy counsel;
King & Spalding, LLP as special counsel; FTI Capital Advisors, LLC
as investment banker; FTI Consulting, Inc. as financial advisor;
and Saccullo Business Consulting, LLC as provider of wind-down
officer and additional personnel. Kurtzman Carson Consultants, LLC
is the claims, noticing, and balloting agent.
The U.S. Trustee for Region 2 appointed an official committee of
unsecured creditors in the Debtors' cases on May 24, 2022. Sidley
Austin, LLP and AlixPartners, LLP serve as the committee's legal
counsel and financial advisor, respectively.
PAVERS INC: $1M Sale of Salina Property to Charles Sargent Approved
-------------------------------------------------------------------
Judge Dale L. Somers of the U.S. Bankruptcy Court for the District
of Kansas authorized Pavers Inc.'s sale of its primary office real
estate commonly known as 505 Francis Street, in Salina, Kansas, and
the improvements thereon, to Charles Sargent Irrigation, Inc., or
its assignee for $1 million, in accordance with the terms of their
The Real Estate Purchase Agreement dated July 27, 2022.
An expedited telephonic hearing on the Motion was held on Aug. 24,
2022.
The following creditors may hold interests in the Property, which
will be eliminated by the Order upon the closing of the Sale,
to-wit: Saline County, The Plains State Bank, dba Bank IV a
division of The Plains State Bank ("PSB"), Westfield, the SBA,
Concrete Supply of Topeka, LLC, dba Builders Choice Concrete Co.,
Carter-Waters, LLC, West Bend Mutual Insurance Co., Fremar
Corporation, Rusty A. Leister, Perry Fulsom Construction, GCNA,
Kansas Department of Revenue, and Kansas Department of Labor.
Sale proceeds will be first applied to all costs of sale
attributable to the applicable Property. Such costs may include
transfer or sales taxes arising from the Sale, title and document
fees, recording costs, and any other customary costs of sale.
Sale proceeds will be second applied to retire the secured claim of
Saline County, Kansas, as applicable, on account of real property
taxes then accrued for the Property being sold, including a pro
rata portion of such taxes as have accumulated through the closing
of the Sale.
Sale proceeds will be third paid to the Debtor in the amount of
$50,000, all of which will be deposited into the its DIP account
held by PSB and used by the Debtor as detailed in the Debtor's
Motion for Interim Use of Cash Collateral, as modified by the order
granting that motion.
All remaining proceeds of the Sale will then be paid to PSB in
partial satisfaction of its claims. The application of proceeds in
this manner will be without prejudice to the right of the Debtor or
any other party in interest to seek disgorgement of such payments
for any reason whatsoever, including but not limited to challenging
the nature, extent, priority, or validity of PSB's security
interests in the applicable Collateral, challenging the allowance
of PSB's claim(s), asserting claims against PSB, including any
Chapter 5 causes of action, and/or asserting any marshalling
claims. To the extent that any such proceeds are disgorged from
PSB, the liens of all creditors traceable to the source of such
proceeds will attach to the proceeds of such disgorgement in the
same order and with the same extent and validity as if such funds
had never been applied by PSB in the first instance.
The Property will be sold free and clear of all liens,
encumbrances, easements, and restrictions of record, except those
highlighted in yellow on the Title Informational Reports, which
will not be eliminated by the Sale. All other liens, mortgages,
leases, servitudes, or encumbrances on the Property will be
eliminated by the Sale under the Order, pursuant to 11 U.S.C.
Section 363(f).
The Buyer will pay all costs of any policy of title insurance and
any survey performed. The Buyer and the Debtor will split all
escrow and closing costs equally. The Debtor will pay the cost of
all curative recording documents or documents related to the
bankruptcy proceeding, with the Buyer to pay the costs of recording
of any deed and mortgage on the Property.
The Debtor will pay all 2021 and prior year real property taxes as
noted out of the proceeds of the Sale, with the 2022 taxes to be
divided between the Debtor and the Buyer on a pro rata basis.
The Buyer will not acquire any personal or other property of the
Debtor other than the Property. The foregoing notwithstanding, it
will acquire certain fixtures located on the Property, particularly
the Abell-Howe 2-ton hoist/crane located in the shop, and the
shelving units located on the mezzanine level.
The Debtor is granted authority to execute all necessary documents
and take all necessary and appropriate actions to consummate the
Sale. Debtor is granted specific authorization to consummate the
Agreement.
The Agreement will be and is assumed by the Debtor and the estate
pursuant to 11 U.S.C. Section 365.
For the reasons set forth in the Motion, denial of the Debtor's
requested relief would cause immediate and irreparable harm to
Debtor and its estate, and would also have a detrimental effect on
the interests of the Debtor's creditors.
About Pavers Inc.
Pavers Inc. provides design and installation of pavers, retaining
walls, water features and outdoor living areas.
Pavers Inc. filed a petition for relief under Subchapter V of
Chapter 11 of the Bankruptcy Code (Bankr. D. Kan. Case No.
22-40463) on August 8, 2022. In the petition filed by Jeffrey B.
Wilson, as president, the Debtor reports estimated assets between
$1 million and $10 million and estimated liabilities between $1
million and $10 million.
Kent L Adams has been appointed as Subchapter V trustee.
David T Prelle Eron, of Prelle Eron & Bailey, PA, is the Debtor's
counsel. SMG Unlimited (Cherise Hughes) is the Debtor's bookkeeper
and Pickel & Bruckner, LLC (Thomas E. Pickel) is the accountant.
PAVERS INC: Court Sets Auction of Personal Assets for Sept. 20-26
-----------------------------------------------------------------
Judge Dale L. Somers of the U.S. Bankruptcy Court for the District
of Kansas authorized Pavers Inc.'s auction sale of the bulk of its
items of personal property.
An expedited telephonic hearing on the Motion was held on Aug. 24,
2022.
The Auction will be conducted beginning by Sept. 20, 2022, starting
at 8:00 a.m. and closing by Sept. 26, 2022 on a rolling basis until
bidding on all items has concluded, and will be held online through
www.blackmonauctions.com.
All sales will be to the best and highest bidder. Successful
bidders or other buyers will pay by credit card, wire transfer, or
check. Payment will be required before the buyers take possession
of any assets sold in the course of the auction.
The assets will be sold in their then existing condition with no
express or implied warranties, and the purchasers will accept said
assets in such condition. An itemized list of items to be sold at
Auction is attached to the Motion as Exhibit 1. In addition to the
items listed on Exhibit 1, the Debtor has numerous smaller items of
inventory and equipment. The Debtor is authorized to sell such
additional personal property items as "Assets" in accordance with
the procedures set forth.
The Debtor is authorized to sell some of the Assets in advance of
the Auction, or following the Auction to the extent they are not
liquidated during the Auction, without subsequent motion and order,
on the terms set forth. In the event that Debtor obtains a bona
fide offer for individual item(s) of the Assets, which Debtor
desires to accept, it will present the offer to the Subchapter V
Trustee, The Plains State Bank, dba Bank IV a division of The
Plains State Bank ("PSB"), and Westfield, as well as any other
creditor holding or asserting a security interest in the applicable
item(s) as set forth, other than lienholders junior to PSB and
Westfield, disclosing the applicable items to be sold, the sale
price, any sale terms other than payment due in full at closing,
and the identity of the buyer (including any insider connections).
If all notified parties will consent to the sale in writing, which
will include electronic communication by counsel for such parties,
the Debtor may thereafter conduct the sale and transfer the
applicable items to the prospective buyer, and will thereafter file
a report of such sale with the Court. In the event that such
parties do not consent, the Debtor will be required to seek
approval of the Court for such sale(s) in advance of selling such
items outside of the Auction.
In particular, the Debtor is authorized to sell, by private sale to
Pat Martin, the 2014 Toyota Tundra Platinum 4WD, VIN
5TFAW5F14EX3757442006, and the Ford E150 Van, VIN 1FMRE11W56DB10668
for a sales price of $23,000.
It has indicated that Ally Financial holds the only valid lien in
and to its 2016 Chevrolet Silverado, VIN 3GCUKREC9GG234629 and its
2017 Chevrolet Silverado, VIN 1GCOCUEG8HZ403803 ("Ally Assets");
that Citizens One Auto Finance holds the only valid lien in and to
the Debtor's 2016 GMC Sierra, VIN 3GTU2PEC9GG163503 ("Citizens
Asset"); and that PSB holds a first priority security interest in
and to all of the remaining Assets, with the exception of some of
the titled vehicles. Westfield, the SBA, and the Guarantee Company
of North America USA ("GCNA") may hold junior liens on the Assets,
with the exception of the items of titled rolling stock.
All existing liens on the Assets will attach to the proceeds of the
Assets in the same order and with the same extent and validity as
such liens existed in the Assets. Proceeds from the sales will
first be applied to ordinary costs of sale, closing costs, auction
costs, auctioneer commissions, and any unpaid personal property
taxes. All such deductions will be attributed to the proceeds from
each item sold on a pro rata basis, with the exception of any
personal property taxes, which will be solely attributed to the
applicable item of personal property for which such taxes are due
and owing.
The remaining net proceeds will be paid as follows:
a. As to the Ally Assets, to Ally up to the full payment of
Ally's applicable claim that is secured by the Asset being sold;
b. As to the Citizens Asset, to Ally up to the full payment of
Citizens' applicable claim that is secured by the Asset being sold;
and
c. As to all remaining Assets, to the Debtor, all of which
will be deposited into the DIP Account held at PSB and used by
Debtor as detailed in the Debtor's Motion for Interim Use of Cash
Collateral, as modified by the order granting that motion.
After the deposit of the net proceeds into the DIP Account, PSB
will be entitled to apply all funds in the DIP Account in excess of
$50,000 to PSB's claims against the Debtor, but only as to such
items in which PSB holds a lien. The application of these funds
will be without prejudice to the right of the Debtor or any other
party in interest to seek disgorgement of such payments for any
reason whatsoever, including but not limited to challenging the
nature, extent, priority, or validity of PSB's security interests
in the applicable Assets, challenging the allowance of PSB’s
claim(s), asserting claims against PSB, including any Chapter 5
causes of action, and/or asserting any marshalling claims.
To the extent that any such funds are disgorged from PSB, the liens
of all creditors traceable to the source of such funds will attach
to the proceeds of such disgorgement in the same order and with the
same extent and validity as if such funds had never been applied by
PSB in the first instance.
The auctioneer will not distribute any of the proceeds without
providing notice of the proposed distribution to the Debtor and
receiving written confirmation approving of the proposed
distribution, which Debtor will provide only after consulting with
counsel for the respective recipients identified, as well as
counsel for Westfield, GCNA, and the SBA. The Debtor will file a
report of sale regarding all items sold at Auction no later than 20
days of the Auction's closing.
The sale of the Assets, by Auction or otherwise, will be free and
clear of liens.
PSB, Ally, and Citizens will retain their credit bid rights as to
any of the Assets in which they hold a first priority lien. All
other creditors, even if they hold a junior lien, may bid at the
Auction but must pay the full purchase price in the same manner as
any other bidder.
About Pavers Inc.
Pavers Inc. provides design and installation of pavers, retaining
walls, water features and outdoor living areas.
Pavers Inc. filed a petition for relief under Subchapter V of
Chapter 11 of the Bankruptcy Code (Bankr. D. Kan. Case No.
22-40463) on August 8, 2022. In the petition filed by Jeffrey B.
Wilson, as president, the Debtor reports estimated assets between
$1 million and $10 million and estimated liabilities between $1
million and $10 million.
Kent L Adams has been appointed as Subchapter V trustee.
David T Prelle Eron, of Prelle Eron & Bailey, PA, is the Debtor's
counsel. SMG Unlimited (Cherise Hughes) is the Debtor's bookkeeper
and Pickel & Bruckner, LLC (Thomas E. Pickel) is the accountant.
PAVERS INC: Wins Final Cash Collateral Access Thru Jan 2023
-----------------------------------------------------------
The U.S. Bankruptcy Court for the District of Kansas authorized
Pavers, Inc. to use cash collateral on a final basis in accordance
with the budget through January 31, 2023.
The Debtor requires the use of cash collateral to pay its ongoing
expenses for labor, utilities, maintenance and repairs,
professionals, and other ordinary operational costs, together with
the costs of preparing its assets for liquidation and related
marketing expenses.
The Debtor is permitted to use cash collateral generated from the
Debtor's sales of real estate and personal property and income
facilities rentals and any other business operations. The revenues
have been pledged to The Plains State Bank, dba Bank IV, a division
of The Plains State Bank, among others.
PSB has an alleged properly perfected first priority security
interest in the cash collateral, as well as all other real
property, equipment, accounts, inventory and personal property of
the Debtor's estate.
Westfield Insurance Company holds an alleged properly perfected
second priority security interest in the Debtor's accounts,
receivables, nontitled machinery and equipment, general
intangibles, goods, and other forms of personal property.
Bobcat of Salina, Inc. may assert a first priority purchase money
security interest in certain Bobcat parts, tracks, and rentals,
though the Debtor asserts that Bobcat holds no claims.
The US Small Business Administration holds an alleged properly
perfected third priority security interest in the Debtor's
accounts, receivables, non-titled machinery and equipment, general
intangibles, goods, and other forms of personal property.
The Guarantee Company of North America USA holds an alleged
properly perfected fourth priority security interest in the
Debtor's accounts, receivables, non-titled machinery and equipment,
general intangibles, goods, and other forms of personal property.
As of the Petition Date, Westfield, Bobcat, the SBA, and GCNA are
collectively known as the "Junior Lienholders."
As adequate protection, PSB and the Junior Lienholders are granted
a replacement lien and post-petition lien on post-petition assets
of the Debtor. PSB will hold a continuing lien on post-petition
rents pursuant to 11 U.S.C. section 552(b)(2). The replacement lien
and continuing lien will be in proportion to, and to the extent
that, the cash collateral is used by the Debtor on a post-petition
basis, and in the same order and priority as such liens existed on
the Petition Date.
These events constitute an "Event of Default:"
a. The entry of an order by the Court granting relief from or
modifying the automatic stay of Section 362 of the Bankruptcy Code
to allow any creditor to execute upon or enforce a lien on or
security interest in any of the Collateral;
b. Dismissal of the case or conversion of the case to Chapter
7 case;
c. The sale after the Petition Date of any portion of any of
the Debtor's assets outside the ordinary course of dealing and
without approval by the Court under 11 U.S.C. section 363; and
d. The failure by the Debtor to perform, after notice from
PSB, in any respect, any of the material terms, provisions,
conditions, covenants, or obligations under the Order granting the
Motion or under the requirements of the underlying loan documents
between the Debtor and PSB, to the extent such requirements
materially affect the Collateral and are not otherwise inconsistent
with the terms of the Order or bankruptcy law.
As partial adequate protection, PSB is granted a valid,
automatically perfected replacement lien against the assets of the
Debtors, for the full amount of the cash collateral which is
utilized pursuant to the Order granting the Motion. The replacement
liens will have the same validity, avoidability and priority as the
security interests and liens existing against the Cash Collateral
as of the date of the Order on the Motion. The replacement liens
will be declared to be valid and perfected without the need for the
execution, recording or filing of any further document or
instrument or the taking of any further act otherwise required
under nonbankruptcy law.
PSB, for its benefit, is granted, (i) an additional and replacement
continuing valid, binding, enforceable, non-avoidable, and
automatically perfected post-petition security interest in and lien
on any and all presently owned and hereafter acquired personal
property and all other assets of the Debtors and the estate,
together with any proceeds thereof, including, without limitation,
as set forth in the loan documents; (ii) to the extent provided by
Sections 503(b) and 507(b) of the Bankruptcy Code, an allowed
superpriority administrative expense claim in the case and any
Successor Case; (iii) payments from the proceeds from the auction
or sale of its Collateral at the closing of the sale of any such
transaction, with such payments to be made to PSB according to its
relative priority in the assets as of the Petition Date; and (iv)
any refunds paid or payable to the Debtor, including but not
limited refunds of insurance premiums.
The Junior Lienholders are granted the same adequate protection set
forth but only (i) if PSB will have had its allowed claims therein
paid in full, (ii) with the same relative order and priority as
existed on the Petition date, and (iii) only to the extent that its
equity position in any item of Collateral has been diminished by
the Debtor's use of such Collateral. The Post-Petition Replacement
Adequate Protection Lien granted to PSB will have the same priority
as the priority PSB enjoyed in the Debtor's assets as of the
Petition Date, and nothing set forth therein is intended to grant
PSB or any other creditor a priming lien on or security interest in
the Debtor's assets and property.
The Carve-Out means:
1) Fees payable to the Subchapter V trustee, in an amount not
to exceed $5,000;
2) The allowed professional fees and disbursements for the
Debtor's accountant in the case, in an amount not to exceed $5,000;
3) The allowed professional fees and disbursements for the
Debtor's counsel in the case, in an amount not to exceed $40,000;
and
4) Any costs of sale associated with the sale of the
Collateral, including broker commissions, marketing fees, property
taxes, escrow fees, recording costs, and similar expenses, to the
extent authorized by any section 363 order approving of such
sales.
A copy of the order is available at https://bit.ly/3wMOYUT from
PacerMonitor.com.
About Pavers, Inc.
Pavers, Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Kan. Case No. 22-40463) on August 8,
2022. In the petition signed by Jeffrey B. Wilson, president, the
Debtor disclosed up to $10 million in both assets and liabilities.
Judge Dale L. Somers oversees the case.
David Prelle Eron, Esq., at Prelle Eron and Bailey, PA is the
Debtor's counsel.
PG&E CORP: 9th Circuit Split Reverses Interest Rate Ruling
----------------------------------------------------------
Rick Archer of Law360 reports that the Ninth Circuit has reversed
two lower courts with a split decision finding that the trade
creditors in California utility Pacific Gas and Electric's Chapter
11 case should have been granted a higher rate of post-bankruptcy
interest on their claims.
In an opinion issued Monday, August 29, 2022, the panel reversed
the bankruptcy and district court rulings with a 2-1 decision that
found that the Bankruptcy Code did not overrule a common-law
principle that a party that filed for bankruptcy with more assets
than liabilities can't force a creditor to accept a post-bankruptcy
interest rate lower than one the parties agreed on.
About PG&E Corporation
PG&E Corporation (NYSE: PCG) -- http://www.pgecorp.com/-- is a
Fortune 200 energy-based holding company, headquartered in San
Francisco. It is the parent company of Pacific Gas and Electric
Company, an energy company that serves 16 million Californians
across a 70,000-square-mile service area in Northern and Central
California.
PG&E Corporation and its regulated utility subsidiary, Pacific Gas
and Electric Company, faced extraordinary challenges relating to a
series of catastrophic wildfires that occurred in Northern
California in 2017 and 2018. The utility faced an estimated $30
billion in potential liability damages from California's deadliest
wildfires of 2017 and 2018.
On Jan. 29, 2019, PG&E Corp. and its primary operating subsidiary,
Pacific Gas and Electric Company, filed voluntary Chapter 11
petitions (Bankr. N.D. Cal. Lead Case No. 19-30088). As of Sept.
30, 2018, the Debtors, on a consolidated basis, had reported $71.4
billion in assets on a book value basis and $51.7 billion in
liabilities on a book value basis.
Weil, Gotshal & Manges LLP and Cravath, Swaine & Moore LLP served
as PG&E's legal counsel, Lazard as its investment banker and
AlixPartners, LLP as the restructuring advisor to PG&E. Prime Clerk
LLC is the claims and noticing agent.
PG&E has appointed James A. Mesterharm, a managing director at
AlixPartners, LLP, and an authorized representative of AP Services,
LLC, to serve as Chief Restructuring Officer. In addition, PG&E
appointed John Boken also a Managing Director at AlixPartners and
an authorized representative of APS, to serve as Deputy Chief
Restructuring Officer.
Morrison & Foerster LLP served as the Debtors' special regulatory
counsel. Munger Tolles & Olson LLP also served as special counsel.
The Office of the U.S. Trustee appointed an official committee of
creditors on Feb. 12, 2019. The Committee retained Milbank LLP as
counsel; FTI Consulting, Inc., as financial advisor; Centerview
Partners LLC as investment banker; and Epiq Corporate
Restructuring, LLC as claims and noticing agent.
On Feb. 15, 2019, the U.S. trustee appointed an official committee
of tort claimants. The tort claimants' committee is represented by
Baker & Hostetler LLP.
* * *
PG&E Corporation and Pacific Gas and Electric Company announced
July 1, 2020, that PG&E has emerged from Chapter 11, successfully
completing its restructuring process and implementing PG&E's Plan
of Reorganization ("Plan") that was confirmed by the United States
Bankruptcy Court on June 20, 2020.
For the benefit of fire victims, the Plan provided for a Fire
Victim Trust, which was funded with an oft-stated value of $13.5
billion, to be half in cash and half in new company PG&E common
stock. The $6.75 billion in cash was paid. With respect to the
stock consideration, 478 million shares of PG&E stock were
delivered to the Fire Victim Trust in accordance with an agreed-to
formula under the Plan.
POWER STOP: S&P Downgrades ICR to 'B-', Outlook Negative
--------------------------------------------------------
S&P Global Ratings has lowered its issuer credit rating on Power
Stop LLC to 'B-' from 'B'. At the same time, S&P lowered its
issue-level rating on the company's senior secured credit
facilities to 'B-' from 'B'.
The negative outlook reflects the possibility that S&P could
downgrade Power Stop again over the next 12 months if EBITDA
margins remain at suppressed levels combined with continued
investment in working capital, causing FOCF to be negative on a
sustained basis and a further drain on Power Stop's liquidity.
Further, a weaker macroeconomic environment and higher inflation
could reduce consumer demand for Power Stop's brake kits and
related products that we view as highly discretionary.
S&P said, "We expect credit metrics and cashflows will remain weak,
and could weaken further over the next 12 months. EBITDA margins
compressed in 2022 and we now expect leverage to be over 7.5x in
2022 compared to our previous expectations of around 5x. We also
anticipate FOCF in 2022 will remain weak due to the company's
reduced profitability and elevated working capital, though working
capital could improve in the back half of the year. The margin
compression was due to a combination of a mix shift into lower
margin channels, reduced customer demand for the company's highest
margin products, and inflationary pressures." The unfavorable mix
shift stemmed from higher growth in lower margin warehouse
distribution channels associated with new customer wins and product
launches at the same time as a slowdown in demand from the highest
margin online retailer segment. Demand was particularly weak for
the mid-tier and higher-end product categories as consumer strength
has weakened in response to higher inflation.
Margins were also weighed down by higher freight and logistics
costs as shipping container rates ballooned during the second half
of 2021 and have only recently stepped back from peak levels. To
address this, Power Stop initiated several price increases across
its product portfolio. S&P expects some of the freight inflation to
wane and Power Stop's EBITDA margins will gradually recover in the
forecast period from the mid-teens toward its historic 20% margin
range. However, there are downside risks to this forecast should
consumer demand for its products weaken further.
Revenue is susceptible to further economic downside risk. S&P
Global economists now assess recession risk at 45% (40%-50% range)
for the next 12 months. If the U.S. were to enter a longer
recession, this would reduce discretionary consumer spending and
demand for Power Stop's products more than our base case as S&P
expects customers would defer replacement spending or substitute
for lower cost brake kits and related products. In this scenario, a
steeper decline in revenues combined with lower EBITDA margins
because of reduced operating scale and likely lower margin mix
would contribute to even higher leverage and place additional
pressure on its ability to generate positive FOCF.
There are downside risks if the company does not unwind its working
capital usage. The company has drawn significantly on its revolving
credit facility to fund working capital, leaving reduced revolver
availability. In particular, inventory increased significantly in
anticipation of higher sales growth during 2022. S&P's base case
expectation is for the company to reduce its inventories and
increase cash flows. However, if the working capital reversal and
revolver repayment do not progress in line with our expectation,
liquidity could be further pressured, and it could lower the
ratings.
S&P said, "The negative outlook reflects the possibility that we
could downgrade Power Stop over the next 12 months if EBITDA
margins remain at suppressed levels combined with continued
investment in working capital, causing FOCF to be negative on a
sustained basis and a further drain on Power Stop's liquidity.
Further, a weaker macroeconomic environment and higher inflation
could reduce consumer demand for Power Stop's brake kits and
related products that we view as highly discretionary.
"We could lower our rating on Power Stop if its capital structure
became unsustainable or liquidity became more constrained. These
factors could be influenced by EBITDA margins remaining at
suppressed levels due to a broader slowdown in consumer
discretionary spending that reduced Power Stop's sales volumes,
inflationary pressures persisted, or it experienced operational
disruptions that affected its ability to fulfill orders
efficiently. A downgrade could also follow if Power Stop's
financial sponsor pursued more aggressive financial policies that
increased leverage, such as further large dividend distributions or
debt financed acquisitions.
"We could revise our outlook on Power Stop to stable if sales were
to stabilize, EBITDA margins recovered on a sustainable basis, and
inventory levels fell, allowing the company to consistently
generate positive FOCF and improve its liquidity position."
ESG Credit Indicators: E-2, S-2, G-3
S&P said, "Environmental and social factors have an overall neutral
influence on our credit rating analysis of Power Stop. Brake kits
and related products are not perceived as facing displacement risk
from electrification trends because of Power Stop's focus on
serving aftermarket vehicle parts demand and ability to develop
kits for electric vehicles. Governance is a moderately negative
factor in our credit rating analysis of Power Stop because of the
financial sponsor ownership and underlying corporate
decision-making that prioritizes the interest of controlling
owners, in line with our view of most rated entities owned by
private equity sponsors. This also reflects financial sponsors'
generally finite holding periods and focus on maximizing
shareholder returns."
PUERTO RICO: Govt. Agencies Owe PREPA $233 Mil. Overdue Power Bills
-------------------------------------------------------------------
Jim Wyss of Bloomberg News reports that Puerto Rico's House of
Representatives passed a bill Tuesday that will allow the bankrupt
public power company to claw back more than $233 million in unpaid
electricity bills owed by federal and state agencies.
If it becomes law, the measure would create an Electrical System
Stabilization Fund, where some of the overdue fees would be
deposited to help mitigate power price fluctuations, the House said
in a statement
The deal comes as Puerto Rico's Electric Power Authority, or PREPA,
and its creditors are negotiating a deal to slash $9 billion of
debt.
About Puerto Rico
Puerto Rico is a self-governing commonwealth in association with
the United States that's facing a massive bond debt of $70 billion,
a 68% debt-to-GDP ratio and negative economic growth in nine of the
last 10 years.
The Commonwealth of Puerto Rico has sought bankruptcy protection,
aiming to restructure its massive $74 billion debt-load and $49
billion in pension obligations.
The debt restructuring petition was filed by Puerto Rico's
financial oversight board in U.S. District Court in Puerto Rico
(Case No. 17-01578) on May 3, 2017, and was made under Title III of
2016's U.S. Congressional rescue law known as the Puerto Rico
Oversight, Management, and Economic Stability Act ('PROMESA').
The Financial Oversight and Management Board later commenced Title
III cases for the Puerto Rico Sales Tax Financing Corporation
(COFINA) on May 5, 2017, and the Employees Retirement System (ERS)
and the Puerto Rico Highways and Transportation Authority (HTA) on
May 21, 2017. On July 2, 2017, a Title III case was commenced for
the Puerto Rico Electric Power Authority ("PREPA").
U.S. Chief Justice John Roberts has appointed U.S. District Judge
Laura Taylor Swain to oversee the Title III cases. The Honorable
Judith Dein, a United States Magistrate Judge for the District of
Massachusetts, has been designated to preside over matters that may
be referred to her by Judge Swain, including discovery disputes,
and management of other pretrial proceedings.
Joint administration of the Title III cases, under Lead Case No.
17-3283, was granted on June 29, 2017.
The Oversight Board has hired as advisors, Proskauer Rose LLP and
O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic
consultant, Citigroup Global Markets, as municipal investment
banker, and Ernst & Young, as financial advisor.
Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M.
Abelson, Esq., of Proskauer Rose; and Hermann D. Bauer, Esq., at
O'Neill & Borges are on-board as attorneys.
McKinsey & Co. is the Board's strategic consultant, Ernst & Young
is the Board's financial advisor, and Citigroup Global Markets Inc.
is the Board's municipal investment banker.
Prime Clerk LLC is the claims and noticing agent. Prime Clerk
maintains a case web site at
https://cases.primeclerk.com/puertorico
Epiq Bankruptcy Solutions LLC is the service agent for ERS, HTA,
and PREPA.
O'Melveny & Myers LLP is counsel to the Commonwealth's Puerto Rico
Fiscal Agency and Financial Advisory Authority (AAFAF), the agency
responsible for negotiations with bondholders.
The Oversight Board named Professor Nancy B. Rapoport as fee
examiner and to chair a committee to review professionals' fees.
* * *
The two Title III plans of adjustment have been confirmed to date,
for the Commonwealth and COFINA debtors.
PWM PROPERTY: Court Approves Chapter 11 With Reduced Releases
-------------------------------------------------------------
Vince Sullivan of Law360 reports that the owner of a Manhattan
office tower received approval for its Chapter 11 plan of
reorganization Tuesday, August 30, 2022, after a New York judge
said releases being granted to company insiders were too broad and
ordered them pared down.
During a virtual hearing, U.S. Bankruptcy Judge Mary F. Walrath
agreed to sign a modified confirmation order that limited the
releases granted by debtor PWM Property Management LLC in its plan
to exclude claims for gross negligence or willful misconduct by
those with fiduciary duties to the company.
About PWM Property Management
PWM Property Management LLC, et al., are primarily engaged in
renting and leasing real estate properties. They own two premium
office buildings, namely 245 Park Avenue in New York City, a
prominent commercial real estate assets in Manhattan's prestigious
Park Avenue office corridor, and 181 West Madison Street in
Chicago, Illinois.
On Oct. 31, 2021, PWM Property Management LLC and its affiliates
sought Chapter 11 protection (Bankr. D. Del. Lead Case No.
21-11445). PWM estimated assets and liabilities of $1 billion to
$10 billion as of the bankruptcy filing.
The cases are pending before the Honorable Judge Mary F. Walrath
and are being jointly administered for procedural purposes under
Case No. 21-11445.
The Debtors tapped White & Case LLP as restructuring counsel; Young
Conaway Stargatt & Taylor, LLP as local counsel; and M3 Advisory
Partners, LP as restructuring advisor. Omni Agent Solutions is the
claims agent.
RAYMOND JAMES: Fitch Gives BB Rating on Series A/B Preferred Stock
------------------------------------------------------------------
Fitch Ratings has assigned a 'BBB+' rating to Raymond James
Financial Inc.'s (RJF) recently assumed 5.75% Fixed-to-Floating
Rate Subordinated Notes due 2030 and a 'BB+' rating to its recently
issued Series A and Series B non-cumulative perpetual preferred
stock.
KEY RATING DRIVERS
On June 1, 2022, Raymond James completed its previously announced
acquisition of TriState Capital Holdings, Inc. (TriState Capital).
As part of the acquisition, all series of outstanding TriState
non-cumulative perpetual preferred stock were converted into newly
created RJF fixed-to-floating non-cumulative perpetual preferred
stock. Additionally, as part of the merger, RJF assumed TriState
Capital's outstanding subordinated debt.
The subordinated debt is notched one level below RJF's Viability
Rating (VR) for loss severity. In accordance with Fitch's Bank
Rating Criteria, this reflects alternative notching from the base
case of two notches due to Fitch's view of U.S. regulators'
resolution alternatives for an entity like RJF, as well as early
intervention options available to banking regulators under U.S.
law. The subordinated notes have not been assigned any equity
credit.
The rating on the preferred stock reflects standard notching based
on Fitch's Bank Rating Criteria. The preferred stock is rated four
notches below the VR, reflecting two notches for nonperformance and
two notches for loss severity. Dividends on the preferred stock are
non-mandatory and non-cumulative. The preferred stock, which
qualify as Tier 1 capital, have been assigned 100% equity credit.
Fitch believes the acquisition of TriState Capital is highly
complementary to RJF's franchise and introduces limited integration
risk. RJF used a combination of cash and stock to finance the
transaction, which helped maintain conservative leverage metrics.
RJF reported CET1 capital and Tier 1 leverage ratios of 20.0% and
10.8%, respectively, at June 30, 2022, down from 25.9% and 12.6% at
March 31, 2022 but substantially above regulatory minimums. RJF's
cash flow leverage (debt/EBITDA) was 0.8x for the TTM ended 3Q22,
which is viewed as adequate for the ratings. Interest coverage, as
measured by EBITDA to interest expense on corporate debt, remained
solid at 28.5x for the TTM ended 3Q22 and above the 12x-15x
benchmark range for 'a' category securities firms with low balance
sheet usage.
The Stable Rating Outlook reflects Fitch's expectations that RJF's
cash flow leverage will remain near current levels, the Tier 1
leverage ratio will remain above the publicly articulated target of
10% and parent company liquidity will remain above $1 billion. The
Outlook also reflects Fitch's expectation that RJF will sustain its
conservative approach to acquisitions, strong operating
performance, with limited increases in credit losses in the bank
portfolio.
RATING SENSITIVITIES
The ratings of the subordinated debt and preferred stock are
sensitive to any change to the VR and are expected to move in
tandem.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Material trading or operational losses;
-- Adverse regulatory actions or litigation, or reputational
damage that leads to impairment of the firm's franchise or
funding profile;
-- An adverse alteration of the firm's underwriting standards or
risk appetite, including a more aggressive M&A strategy,
leading to substantial integration or financial risk;
-- An inability to successfully integrate acquired businesses,
resulting in litigation losses, revenue attrition or an
uncontrolled increase in costs;
-- Material deterioration in capitalization, such that tier 1
leverage decreases below 10%, and/or cash flow leverage
increases above 1.5x for the firm on a sustained basis;
-- A reduction in parent company liquidity below the publicly
communicated target;
-- Outsized credit losses or impairments in the loan or
securities portfolio at the bank;
-- A sustained decline in interest coverage.
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Continued growth of the wealth management platform and
diversification of revenue streams;
-- Sustained EBITDA margin expansion towards 30% or above;
-- Cash flow leverage sustained below 1.0x while maintaining
conservative cushion above regulatory capital and leverage
ratios;
-- A demonstrated track record of minimal operational losses and
regulatory fines.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
Raymond James Financial, Inc.
Subordinated LT BBB+ New Rating
Preferred LT BB+ New Rating
RITCHIE BROS: Moody's Affirms 'Ba2' CFR & Alters Outlook to Stable
------------------------------------------------------------------
Moody's Investors Service has changed the outlook on Ritchie Bros.
Auctioneers Incorporated (RBA) to stable from negative.
Concurrently, Moody's has affirmed all RBA's ratings, including its
Ba2 Corporate Family Rating, its Ba2-PD probability of default
rating, its senior secured Ba1 instrument rating and its Ba3 senior
unsecured instrument rating. Additionally, RBA's speculative grade
liquidity rating was upgraded to SGL-1 from SGL-2.
The actions follow RBA's repayment of the funding it issued to
finance a portion of the cash consideration for the discontinued
acquisition of Euro Auctions and Moody's expectation that the
company will continue to generate free cash flow and maintain
strong credit metrics including adjusted debt-to-EBITDA below 2x.
Affirmations:
Issuer: Ritchie Bros. Auctioneers Incorporated
Corporate Family Rating, Affirmed Ba2
Probability of Default Rating, Affirmed Ba2-PD
Senior Secured Bank Credit Facility, Affirmed Ba1 (LGD3)
Senior Unsecured Regular Bond/Debenture, Affirmed Ba3 (LGD5)
Upgrades:
Issuer: Ritchie Bros. Auctioneers Incorporated
Speculative Grade Liquidity Rating, Upgraded to SGL-1 from SGL-2
Outlook Actions:
Issuer: Ritchie Bros. Auctioneers Incorporated
Outlook, Changed To Stable From Negative
RATINGS RATIONALE
RBA benefits from: 1) a strong position in the industrial equipment
auctions segment; 2) a multichannel strategy with strong online
platforms; 3) a consistent history of generating free cash flow and
4) exposure to multiple industry sectors and good growth potential.
RBA is constrained by: 1) its small size relative to many Ba2-rated
service companies; 2) the expectation the company will be active in
pursuing acquisitions and its willingness to undertake debt funded
transactions; and 3) its participation in a competitive and
fragmented marketplace that has some cyclical pressures.
RBA's strategy of growth through acquisitions creates a risk of
higher leverage as the company has demonstrated a willingness to
materially increase debt to fund acquisitions (as shown following
the Euro Auctions acquisition announcement) As well the company is
expected to use free cash flow for shareholder returns (mostly
dividends) and acquisitions.
RBA has strong liquidity (SGL-1) through to the end of 2023, with
sources of liquidity of around $1.3 billion compared to uses of
around $60 million. Sources include a cash balance of $367 million
at June 30, 2022 (excluding restricted cash), $684 million
available under its revolving credit facilities totaling $750
million (maturing in September 2026) and Moody's expectation that
RBA will generate around $300 million of free cash flow through to
the end of 2023. Uses of liquidity include about $60 million of
lease payments. The company has some seasonality (with Q1
generally having the strongest cash flow), but historically this
has not resulted in the revolver being drawn for working capital
needs. Moody's expect the company will have ample cushion under the
financial covenants of its credit facilities.
The stable outlook reflects Moody's expectation that RBA will
continue to see organic revenue growth and margins will remain
relatively stable. It also incorporates Moody's expectation that
adjusted debt to EBITDA will remain below 3x.
The $750 million senior secured credit facility and senior secured
term loan (about $90 million outstanding) are rated Ba1, one notch
above the company's Ba2 CFR. The senior secured ratings reflect the
priority of claim of these obligation relative to the $500 million
senior unsecured notes due 2025, which are rated Ba3.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if RBA is able to increase its scale
and continue to broaden and diversify its product offerings through
its multi-channel strategy while demonstrating organic revenue and
cash flow growth. It would also require that leverage is maintained
near 2x (1.9x June 2022) and FCF/debt is maintained above 15%
(17.6% June 2022).
The ratings could be downgraded if business fundamental
deteriorated, evidenced by organic revenue or profitability
declines, or if debt to EBITDA (Moody's adjusted) is sustained
above 3.5x (1.9x June 2022) and FCF/debt is maintained below 5%
(17.6% June 2022).
Ritchie Bros. Auctioneers Incorporated, headquartered in Vancouver,
Canada, sells industrial equipment and other durable assets through
its unreserved auctions, online marketplaces, listing services and
private brokerage services. In 2021, the company's gross
transaction value (GTV) was $5.5 billion and the company generated
total revenue of $1.4 billion.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
ROCK SPLITTERS: Taps Professional Business Services as Accountant
-----------------------------------------------------------------
Rock Splitters, Inc. seeks approval from the U.S. Bankruptcy Court
for the District of Massachusetts to employ Professional Business
Services as its accountant.
The Debtor requires an accountant to complete its tax returns and
financial statements, including monthly reports.
The firm charges an hourly fee of $180.
Steven Nowicki, president of Professional Business Services,
disclosed in a court filing that his firm does not represent an
interest adverse to the Debtor's estate and any other entity
connected to the estate.
The firm can be reached through:
Steven Nowicki
Professional Business Services
15 Barton Street
Oxford, MA 01540
Phone: 508-987-3600
Email: office@pbsfinancial.com
About Rock Splitters
Rock Splitters, Inc. filed a petition under Chapter 11, Subchapter
V of the Bankruptcy Code (Bankr. D. Mass. Case No. 22-40584) on
Aug. 10, 2022, listing as much as $1 million in both assets and
liabilities. David Mawhinney serves as Subchapter V trustee.
Judge Elizabeth D. Katz oversees the case.
James O'Connor, Jr., Esq., at Nickless, Phillips and O'Connor and
Professional Business Services serve as the Debtor's bankruptcy
counsel and accountant, respectively.
ROCK SPLITTERS: Wins Cash Collateral Access Thru Oct 7
------------------------------------------------------
The U.S. Bankruptcy Court for the District of Massachusetts,
Central Division, authorized Rock Splitters, Inc. to use cash
collateral on an interim basis through October 7, 2022.
A hearing on the Debtor's further use of cash collateral is set for
October 7 at 11 a.m. Objections are due October 6.
As previously reported by the Troubled Company Reporter, the Debtor
owes the Internal Revenue Service approximately $615,000 in
prepetition tax liabilities. Approximately all of this amount is
subject to tax liens.
The Debtor owes the Massachusetts Department of Revenue
approximately $82,000 in prepetition tax liabilities of which
approximately $59,000 is asserted to be secured.
Nearly all of the tax debt purported to be owed is for withholding
taxes. The taxes have been personally assessed against the Debtor's
principal and he is on a payment plan with both the DOR and IRS.
On August 8,2022, a judgment creditor, Huhtala Oil and Templeton
Garage, Inc., seized certain assets of the Debtor including a
truck, a compressor and a drilling machine. Upon the filing of the
case the assets were released to the Debtor.
The Debtor, through counsel, has been in contact with the DOR and
has entered into stipulation with the DOR concerning use of cash
collateral.
The parties agree that the Debtor will be permitted to use cash
collateral and DOR will retain its pre-petition liens and security
interest in post-petition assets to the same perfection, validity,
priority, and extent as pre-petition.
The Debtor has been unable to communicate with the IRS. The Debtor
proposed that the IRS retain its pre-petition liens and security
interest in post-petition assets to the same perfection, validity,
priority, and extent as pre-petition. In addition, the Debtor would
continue to make payments of $278 per week to the IRS and provide
IRS with its monthly operating reports as they are filed and remain
current on all post-petition tax obligation filings and payments.
A copy of the order is available at https://bit.ly/3cESk5P from
PacerMonitor.com.
About Rock Splitters
Rock Splitters, Inc. is engaged in the business of blasting,
drilling, and splitting rocks in construction.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. D. Mass. Case No. 22-40584) on Aug. 10,
2022, listing as much as $1 million in both assets and liabilities.
David Mawhinney serves as Subchapter V trustee.
Judge Elizabeth D. Katz oversees the case.
James O'Connor, Jr., Esq., at Nickless, Phillips and O'Connor
serves as the Debtor's bankruptcy counsel.
ROCKING M MEDIA: Wins Cash Collateral Access on Final Basis
-----------------------------------------------------------
The U.S Bankruptcy Court for the District of Kansas authorized
Rocking M Media, LLC and its debtor-affiliates to use cash
collateral and inventory on a final basis in accordance with the
budget.
Kansas State Bank of Manhattan, Bank of Commerce & Trust Co.,
Farmers & Merchants Bank of Colby, the Small Business
Administration and Belate, LLC serve as the Debtors' Pre-Petition
Lenders, and may claim valid, perfected and enforceable liens on
and security interests in, among other things, depository accounts,
real property and/or specific furniture, fixtures and equipment.
As adequate protection, the Secured Creditors are granted
replacement security interests in, and liens on, all post-Petition
Date acquired property of the Debtors and the Debtors' bankruptcy
estates that is the same type of property that the Creditor holds a
pre-petition interest, lien or security interest to the extent of
the validity and priority of such interests, liens, or security
interests, if any. The amount of each of the Replacement Liens will
be up to the amount of any diminution of each of the Creditors'
respective collateral positions from the Petition Date. The
priority of the Replacement Liens will be in the same priority as
each of the Creditors pre-petition interests, liens, and security
interests in similar property.
Any Replacement Lien granted will be effective and perfected upon
the date of entry of the Interim Order without necessity for the
execution or recordation of filings of deeds of trust, mortgages,
security agreements, control agreements, pledge agreements,
financing statements or similar documents, or the possession or
control by the Creditors of, or over, any property subject to the
Replacement Liens.
KSB, Belate and Farmers will be provided additional adequate
protection as follows:
a. The Debtors will pay KSB $10,000 per month beginning July
15, 2022, and the 15th day of each month thereafter until further
Court order.
b. The Debtors will pay Farmers $5,000 per month beginning
July 15, 2022, and the 15th day of each month thereafter until
further Court order.
c. The Debtors will pay Belate $5,000 per month beginning July
15, 2022, and the 15th day of each month thereafter until further
Court order.
To the extent the Replacement Liens prove inadequate to protect the
Creditors, they are granted an administrative expense claim.
The Debtors will continue to maintain adequate and sufficient
insurance on all their properties and assets.
A copy of the order is available at https://bit.ly/3Q9SZJV from
PacerMonitor.com.
About Rocking M Media, LLC
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 case.
Sharon L. Stolte, Esq., at Sandberg Phoenix & von Gontard PC is the
Debtors' counsel.
Kansas State Bank of Manhattan, as creditor, is represented by
Nicholas J. Zluticky, Esq., at Stinson LLP.
Belate, LLC, as creditor, is represented by Andrea Chase, Esq., at
Spencer Fane LLP.
Farmers and Merchants Bank of Colby, as creditor, is represented by
Scott M. Hill, Esq. at Hite, Fanning & Honeyman L.L.P.
SAGICOR FINANCIAL: Fitch Puts BB IDR on Rating Watch Positive
-------------------------------------------------------------
Fitch Ratings has placed Sagicor Financial Company Ltd's (SFC) 'BB'
Issuer Default Rating (IDR) and senior unsecured debt ratings of
'BB-' on Rating Watch Positive (RWP). This follows the company's
announcement of its intended acquisition of ivari, a leading
middle-market insurer in Canada, and reflects prospective
improvement in the credit quality of SFC's insurance operating
company group. The transaction is expected to close in the next
6-12 months, subject to regulatory approval.
KEY RATING DRIVERS
The RWP is supported by a stronger company profile at the group
operating company level that would result from the acquisition of
ivari, which is rated higher than that of most of SFC's other
operating subsidiaries at IFS 'A-'/RWN and operates in a stronger
operating environment. This will result in a material positive
shift in SFC's operating group's competitive positioning, operating
scale, and business mix, including geographic diversification
towards investment grade sovereign jurisdictions. Additionally, on
a consolidated basis, SFC's investment and asset risk factor will
improve due to a higher proportion of investment grade assets that
will result in a reduction in the risky asset ratio.
While the acquisition of ivari will lead to a material improvement
in SFC's operating environment and company profile, this
improvement is counterbalanced by SFC's historically higher
financial leverage ratios, which could be driven up by the
additional debt needed to finance the deal and puts downward
pressure on holding company notching.
In addition, future cash flows from ivari available to SFC to
service debt at the holding company level will be subject to
greater regulatory restrictions than those from most of SFC's
developing market subsidiaries. Such regulatory restriction can
temper some of the benefits of improved financial strength at the
operating company level related to the IDR and debt ratings at the
holding company level, under Fitch's notching methodologies.
The transaction is taking place during a period of heightened
economic uncertainty, including rising interest rates and inflation
in key markets and the introduction of IFRS 17. Fitch believes
these factors somewhat heighten uncertainty about ivari's future
capital and balance sheet position.
After the transaction closes, Fitch will review leverage and
capitalization levels compared with original rating expectations.
Fitch will also review the level of the new cash flow derived from
ivari, along with any other developments with respect to ivari's
standalone credit quality. In resolving the Rating Watch, Fitch
will balance the credit positives tied to improvements in the group
operating company credit quality relative to the credit negatives
tied to the impact of higher financial leverage, while also
balancing regulatory restrictions on the acquired cash flows.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Significant improvement in SFC's consolidated industry
profile, operating environment and company profile achieved by
the closing of the ivari acquisition, and Fitch's view that it
materially enhances the operating group's overall credit
quality;
-- FLR ratios maintained at or below current levels (42% on a
pro-forma basis excluding non-controlling interest)
-- Fixed charge coverage ratio of at least 5x.
-- Economic uncertainties do not result in a decline in ivari's
stand-alone credit quality implied at the current 'A-' IFS
rating.
-- No material deterioration in economic and operating
environments and sovereigns of Jamaica, Trinidad, and
Barbados;
-- Below investment grade to capital ratio close to 130% and
Risky asset ratio below 240% and, along with minimal exposure
to sovereigns to capital specially Barbados, Jamaica and
Trinidad.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
The ratings could return to Stable Outlook if:
-- The transaction is not completed;
-- There is a decline in ivari's IFS rating on a standalone basis
to below 'A-' and/or available cash flows available to the
holding company appear to be lower than expected.
There could be negative rating actions/downgrade if:
-- Significant deterioration in the economic and operating
environments and sovereigns of Jamaica, Trinidad and Barbados,
which would lead to a material decline in operating
performance and/or credit profile of SFCL's investment
portfolio;
-- Deterioration in key financial metrics, including consolidated
MCCSR falling below 180% and financial leverage exceeding 50%
and ROE below 5% on a sustained basis.
Criteria Variation
Bespoke IPOE
SFCL's primary operations are located in four jurisdictions:
Barbados, Jamaica, Trinidad and the U.S. Given the company's
insurance operations across the Caribbean and the U.S., SFCL's IPOE
score is an amalgamated IPOE range of 'bb+' to 'b-', reflecting its
primary regions of operations. SFCL's IPOE range continues to
reflect the skew of its business mix toward below-investment-grade
jurisdictions, which remains the majority but recognizes continued
growth in the U.S. over the last several years.
Rating Prior
------ -----
Sagicor Financial
Company Ltd.
LT IDR BB Rating Watch On BB
senior unsecured LT BB- Rating Watch On BB-
SCUNGIO BORST: Court Approves Sale of Property to Gillen for $10K
-----------------------------------------------------------------
Judge Ashely Chan of the U.S. Bankruptcy Court for the Eastern
District of Pennsylvania authorized Scungio Borst & Associates,
LLC's sale of its 2010 16' Carolina Skiff Boat Model 16 JVX
(Identification No. EKHOT 605C0 10), 2011 Venture Trailer Model
VASK-2100 (Identification No. 47GAK1819BB000004), and related
accessories to Charles Gillen, Jr., for $10,000, pursuant to the
terms and conditions of the Bill of Sale.
The sale is free and clear of any and all Liens and Claims, with
all the Liens and Claims attaching to the proceeds of sale. The
Property is being sold to the Purchaser on an "as is, where is"
basis, without any warranty, either expressed or implied, with all
defects.
The 14-day time period required under Fed. R. Bankr. P. 6004(h) is
waived.
The Debtor will open a new designated DIP bank account within which
to deposit the Purchase Price. No disbursements will be made from
this account without further Order of the Court.
SEARS HOLDING: $175M Bankruptcy Deal With Former CEO Okayed
-----------------------------------------------------------
Alex Wolf of Bloomberg Law reports that the bankrupt estate of
Sears Holding Corp. won court approval to settle complex litigation
against former CEO Eddie Lampert and other investors for $175
million, helping bring the retail chain's four-year-old Chapter 11
case to a close.
Resolution of the litigation, which focused on $2 billion worth of
pre-bankruptcy transactions engineered by Lampert and his hedge
fund ESL Investments Inc., dispels lingering uncertainty about the
estate's ability to pay creditors pursuant to a Chapter 11 plan
approved nearly three years ago.
Judge Robert Drain of the US Bankruptcy Court for the Southern
District of New York said he would approve the deal during a
virtual court hearing Wednesday, August 31, 2022, marking what
should be the retiring jurist‘s final appearance in the case.
The settlement, which was negotiated over the course of several
months with the help of three mediators, allows the estate to avoid
what would likely be two more years of litigating "complex, and
therefore expensive" legal claims, Drain said.
Although the amount of claims asserted "were substantially higher
than the settlement amount," those figures are discounted "by
probability of success," he said. He noted that the deal allows the
company to pay all administrative and priority claims required
under the plan.
However, an order approving the deal won't be signed for at least
30 days to give all parties sufficient time to review terms that
were added just before the hearing regarding a settlement with
lender Cyrus Capital Partners LP, Drain said. Cyrus has been
pursuing an appeal over the priority of its claims against the
estate.
The Sears bankruptcy estate and creditors’ suits targeted several
transactions taken under Lampert's leadership, which allegedly
siphoned value away from the company. The plaintiffs’ claims
focused on a 2014 spin-off of Lands' End Inc. to Sears
shareholders; a 2015 issuance of subscription rights to purchase
shares of Seritage Growth Properties Inc.; the subsequent sale of
real properties to Seritage; and financing agreements provided to
Sears before its 2018 bankruptcy.
The settlement puts an end to remaining disputes related to the
sale of Sears to Transform Holdco LLC, an ESL entity. It also
allows Sears to make payments under a $97.5 million deal it reached
with the Pension Benefit Guaranty Corp. in 2019.
The settlement amount comprises payments of $125.6 million from
Sears insurers, $41.9 million from Lampert and company insiders,
and $7.5 million from public shareholder defendants.
Attorney Ira Dizengoff of Akin Gump Strauss Hauer & Feld LLP,
representing an official committee of unsecured creditors, called
the deal a "monumental outcome" after "years of work."
The iconic department store chain filed for bankruptcy in October
2018 after years of financial difficulties and billions of dollars
in losses.
About Sears Holdings Corp.
Sears Holdings Corporation -- http://www.searsholdings.com/--
began as a mail ordering catalog company in 1887 and became the
world's largest retailer in the 1960s. At its peak, Sears was
present in almost every big mall across the U.S., and sold
everything from toys and auto parts to mail-order homes. Sears
claims to be a market leader in the appliance, tool, lawn and
garden, fitness equipment, and automotive repair and maintenance
retail sectors.
Sears and Kmart merged to form Sears Holdings in 2005 when they had
3,500 US stores between them. Kmart emerged in 2005 from its own
bankruptcy.
Unable to keep up with online stores and other brick-and-mortar
retailers, a long series of store closings left it with 687 retail
stores in 49 states, Guam, Puerto Rico, and the U.S. Virgin Islands
as of mid-October 2018. At that time, the Company employed 68,000
individuals.
As of Aug. 4, 2018, Sears Holdings had $6.93 billion in total
assets against $11.33 billion in total liabilities.
Unable to cover a $134 million debt payment due Oct. 15, 2018,
Sears Holdings Corporation and 49 subsidiaries sought Chapter 11
protection (Bankr. S.D.N.Y. Lead Case No. 18-23538) on Oct. 15,
2018. The Hon. Robert D. Drain is the case judge.
The Debtors tapped Weil, Gotshal & Manges LLP as legal counsel;
M-III Partners as restructuring advisor; Lazard Freres & Co. LLC as
investment banker; DLA Piper LLP as real estate advisor; and Prime
Clerk as claims and noticing agent.
The U.S. Trustee for Region 2 appointed nine creditors, including
the Pension Benefit Guaranty Corp., and landlord Simon Property
Group, L.P., to serve on the official committee of unsecured
creditors. The committee tapped Akin Gump Strauss Hauer & Feld LLP
as legal counsel; FTI Consulting as financial advisor; and Houlihan
Lokey Capital, Inc. as investment banker.
The U.S. Trustee for Region 2 on July 9, 2019, appointed five
retirees to serve on the committee representing retirees with life
insurance benefits in the Chapter 11 cases.
* * *
In February 2019, Bankruptcy Judge Robert Drain authorized Sears
Holdings approval to sell the business to majority shareholder and
CEO Eddie Lampert for approximately $5.2 billion. Lampert's ESL
Investments, Inc., won an auction to acquire substantially all of
Sears' assets, including the "Go Forward Stores" on a going-concern
basis. The proposal allowed 425 stores to remain open and provided
ongoing employment to 45,000 employees.
The new parent is Transform SR Brands LLC, doing business as
Transformco, referred to as "New Sears". Transform is an American
privately held company formed on Feb. 11, 2019, to acquire some of
the assets of Sears Holdings Corporation. The new company is owned
by Eddie Lampert's ESL Investments.
SELUNE LTD: Chapter 15 Case Summary
-----------------------------------
Chapter 15 Debtor: Selune Ltd.
Palm Grove House
P.O. Box 438
Road Town, Tortola VG1110
British Virgin Islands
Chapter 15 Petition Date: August 31, 2022
Court: United States Bankruptcy Court
Southern District of Florida
Case No.: 22-16810
Foreign Proceeding: Eastern Caribbean Supreme Court,
High Court of the BVI,
Commercial Division
Foreign Representatives: Angela Barkhouse
Helen Janes
Carl Jackson
142 Seafarers Way
George Town, Grand Cayman KY1-9006
Cayman Islands
Foreign Representatives'
Counsel: Gregory S. Grossman, Esq.
Juan J. Mendoza, Esq.
Jennifer Mosquera, Esq.
SEQUOR LAW, P.A.
1111 Brickell Avenue, Suite 1250
Miami, FL 33131
Tel: (305) 372-8282
Email: ggrossman@sequorlaw.com
jmendoza@sequorlaw.com
jmosquera@sequorlaw.com
Estimated Assets: Unknown
Estimated Liabilities: Unknown
A full-text copy of the Chapter 15 petition is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/YLZSQQQ/Selune_Ltd__flsbke-22-16810__0001.0.pdf?mcid=tGE4TAMA
SENIOR CARE: Florida Court Sets Auction of Assets for November 16
-----------------------------------------------------------------
Judge Caryl E. Delano of the U.S. Bankruptcy Court for the Middle
District of Florida approved Senior Care Living VII, LLC's bidding
procedures in connection with the sale of the following assets:
a. The assisted living and memory care community owned by the
Debtor and commonly referred to as "Inspired Living at Lewisville,"
located at 1080 W Round Grove Road, Lewisville, Texas 75067, the
approximately 10.2 acres of real property on which Inspired Living
at Lewisville is located, and all tangible and intangible assets
associated therewith; and
b. The approximately 4 acres of undeveloped real property
immediately adjacent to the Facility ("Excess Land") to MPH
Partners, LLC for $1,683,445, subject to overbid.
The salient terms of the Bidding Procedures are:
a. Bid Deadline: Nov. 11, 2022, at 5:00 p.m. (ET)
b. Initial Bid:
1. Excess Land - in the event a Bid applies to the Excess
Land only, the initial purchase price for each such Bid must be in
an amount greater than or equal to the sum of (a) the $1,683,445
cash purchase price offered by the Excess Land Stalking Horse
Bidder in the Excess Land Purchase Agreement, plus (b) the Excess
Land Break-Up Fee ($150,000), plus (c) $100,000.
2. The Facility - in the event a Bid applies to the
Facility only and the Debtor has provided notice of a
Facility/Assets Stalking Horse Bidder, the initial purchase price
for each such Bid must be in an amount greater than or equal to the
sum of (a) the cash purchase price offered by the applicable
Facility/Assets Stalking Horse Bidder, plus (b) the applicable
Facility/Assets Stalking Horse Bid Protections, plus (c) $200,000.
3. The Assets - in the event a Bid applies to the Assets
and the Debtor has provided notice of a Facility/Assets Stalking
Horse Bidder, the initial purchase price for each such Bid must be
in an amount greater than or equal to the sum of (a) the cash
purchase price offered by the applicable Facility/Assets Stalking
Horse Bidder, plus (b) the applicable Facility/Assets Stalking
Horse Bid Protections, plus (c) $300,000.
c. Deposit: 10% of the purchase price made payable to Johnson,
Pope Bokor Ruppel & Burns, LLP
d. Auction: An auction to consider any competing Qualified
Bids in respect of the Property will be held on Nov. 16, 2022 at
10:00 a.m. (EDT) at the offices of Johnson, Pope Bokor Ruppel &
Burns, LLP, 401 E. Jackson Street, Suite 3100, Tampa, Florida 33602
(or at such other location or method designated by the Debtor).
e. Bid Increments: The initial Overbid for the Facility will
be no less than the applicable Opening Bid plus $200,000. Each
successive bid will be in increments of at least $100,000. The
initial Overbid for the Excess Land will be no less than the
applicable Opening Bid plus $100,000. Each successive bid will be
in increments of at least $50,000. The initial Overbid for the
Assets will be no less than the applicable Opening Bid plus
$300,000. Each successive bid will be in increments of at least
$150,000.
f. Sale Hearing: Nov. 21, 2022, at 10:00 a.m. (ET)
g. Sale Objection Deadline: Nov. 18, 2022 at 4:00 p.m. (ET)
h. Break-Up Fee: $150,000 for the Excess land; up to the
lesser of (i) 1.5% of the cash purchase price or (ii) $500,000, as
well as an expense reimbursement not to exceed $100,000 for the
facility
i. Credit Bid: The Bond Trustee reserves its right to submit a
credit bid for the Assets and is a Qualified Bidder, enabling it to
participate at the Auction. If no Qualified Bids are received by
the Bid Deadline (other than the Excess Land Stalking Horse Bid),
the Bond Trustee's deadline to submit a Credit Bid will be two
business days prior to the date of the Auction. If at least one
Qualified Bid is received by the Bid Deadline (other than the
Excess Land Stalking Horse Bid), the Bond Trustee's deadline to
submit a credit bid will be the close of the Auction. For the
avoidance of doubt, the Bond Trustee will not be required to post a
Deposit.
j. Closing: March 1, 2023
Any Sale of the Assets will be transferred on an "as is, where is"
basis, with all faults, and without representations or warranties
of any kind, nature or description by the Debtor, whether written,
verbal, express, implied, or by operation of law.
The Order is without prejudice to any objection to the sale by any
creditor or party-in-interest.
A copy of Bidding Procedures is available for free at
https://tinyurl.com/2zcjy6yb from PacerMonitor.com free of charge.
About Senior Care Living VII
Senior Care Living VII, LLC sought Chapter 11 bankruptcy
protection
(Bankr. M.D. Fla. Lead Case No. 22-00103) on Jan. 10, 2022,
listing
up to $50 million in both assets and liabilities.
Michael C. Markham, Esq., at Johnson Pope Bokor Ruppel & Burns,
LLP
is the Debtor's legal counsel.
SK MOHAWK: Fitch Affirms 'B' IDR & Alters Outlook to Stable
-----------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Issuer Default Ratings
(IDRs) of SK Mohawk Holdings, SARL and Polar U.S. Borrower, LLC at
'B'. Fitch has also affirmed the long-term, senior secured ratings
at 'BB-'/'RR2' and the senior unsecured ratings at 'CCC+'/'RR6'.
The Rating Outlook has been revised to Stable from Negative.
The 'B' rating reflects the company's diverse mix of intermediate
and additive products, modest cyclicality, elevated leverage, and
limited near-term maturities. The Stable Outlook reflects the
company's extension of its revolver maturity to 2027 and moderate
upsizing to $272.5 million (from $250 million).
KEY RATING DRIVERS
Product and End-Market Diversity: SI Group's rating is supported by
a diverse product portfolio that is utilized by companies across a
wide range of industries, providing ballast against volatility in
any one sector. The company offers multiple applications including
adhesives, lubricants, coatings and packaging applications, while
serving a diverse set of end-markets across aerospace, automotive,
building and construction, consumer goods and oil and gas. This
diversity across application and industry helps smooth some of the
cyclical exposure.
Solid Core Additives Position: Backward integration into
intermediate chemistry provides an advantaged cost structure for
the company's additive products. SI Group is unique in its ability
to switch capacity to other products within its portfolio in
response to tightness or weakness across markets. In conjunction
with the company's increasing centralization of its facilities,
Fitch believes that utilization rates will rise over the
medium-term, resulting in modest margin tailwinds.
Successful Integration and Centralization: SI Group has benefitted
from changes in its business structure to a more consolidated
operating model from a decentralized business unit model, thereby
reducing operating costs. Prior to 2018, SI Group's facilities
followed an affiliate model, with each subsidiary as its own profit
center and with its own staff. Since then, SI Group has
rationalized its portfolio and disposed of non-core businesses
(including its industrial resins segment), consolidated facilities
and streamlined functional processes. These efforts helped the
company improve its expense base, better manage working capital
levels in the face of higher inflation and support increased
production volumes and unit material margins.
Elevated Capital Expenditures Support Future Growth: Fitch expects
SI Group's expansionary investments to help drive improved
operating performance over the rating horizon. During the pandemic
and ensuing uncertainties, SI Group deferred certain growth-related
capital projects. The company is now catching up with some of these
investment opportunities, and Fitch expects that capex will remain
elevated ($130 million-140 million) through 2024.
While this spending will weigh on Free Cash Flow, the investments
ultimately provide a springboard for additional volume growth and
margin expansion. Fitch expects that SI Group would defer planned
de-bottlenecking and expansionary projects in the event of a
downturn, similar to its actions in 2020.
Elevated Leverage: Although SI Group's Fitch-Adjusted leverage of
7.3x is high for the 'B' rating category, Fitch expects leverage to
improve to the 5x range by 2024 as the company rolls customer
contracts at higher pricing and additional capacity comes online.
To that end, SI Group's material margins have continued to improve
since 2020 from strong underlying demand and pricing actions.
DERIVATION SUMMARY
Compared to other chemical peers in the 'B' category, SK Mohawk has
moderately high gross leverage. Typically, the greater degree to
which a chemical manufacturer's products are specialized or
otherwise defensible, the greater amount of debt the firm can
support at the same rating level. Kronos Worldwide (B+/Stable)
generally operates with total debt with equity credit/operating
EBITDA of under 2.0x, but its titanium dioxide (TiO2) offerings'
price is highly volatile, leaving the company exposed to large
swings in leverage and volatile cash flows.
Aruba Investments (Angus Chemical; B/Stable) has a similar leverage
profile, but its position as the only global commercial producer of
nitroalkanes allows the company to enjoy outsize EBITDA margins.
ASP Unifrax operates with similar leverage, but also benefits from
a somewhat more specialized product portfolio that generates higher
EBITDA margins. SK Mohawk's business and cash flow risk profiles
are towards the middle of these peers, with diverse offerings in
the additives space, fragmented competition, and a modest (but
improving) cost advantage.
KEY ASSUMPTIONS
-- Volume growth of approximately 3% for 2022, while a modest
recession reduces volumes in 2023. An assumed macro recovery in
2024, coupled with a sizable pickup in volumes from ramping of new
antioxidant capacity, support volume growth.
-- Unit pricing increases in 2022, but at slower rates than 2021
and YTD trends. ASP's decline in 2023 and 2024, driven by modeled
economic slowdown, but also parallel movement with relief on raw
material costs. Material costs are projected to fall from macro
trends and forward pricing expectations.
-- Material Margins improve through 2024, as contract pricing
headwinds from inflation reverse.
-- Capex remains elevated as past deferred projects are deployed.
SI Group's antioxidant capacity expansion (project Lonestar) is
completed in 2023; other growth and expansionary projects run
through 2024. Fitch assumes maintenance capex of $50 million.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Total Debt with Equity Credit/Operating EBITDA durably below
4.5x;
-- EBITDA margin improvement from successful price increases on
contract renewals and planned capital expansion;
-- Consistently positive FCF generation.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Total Debt with Equity Credit/Operating EBITDA remaining
durably above 5.5x;
-- Inability to improve EBITDA margins due to demand erosion
and/or failure to capture pricing increases at contract
renewal;
-- EBITDA/Interest Coverage durably below 2.5x.
LIQUIDITY AND DEBT STRUCTURE
Solid Liquidity: SI Group has access to a $272.5 million revolving
credit facility (upsized from $250 million in August 2022, $190
million of borrowing capacity at March 31, 2022) that matures in
August 2027, in addition to holding $49 million of cash at March
31, 2022. At the onset of the pandemic, the company aggressively
targeted working capital reduction in an effort to bolster
liquidity. As a result, the company generated FCF of greater than
$100 million in 2020.
In 2021, the inflationary impact on inventory, rising labor costs
and higher capex resulted in negative FCF. However, SI Group
supported those needs with the net proceeds from the sale of its
industrial resins segment, thereby preserving revolver capacity.
Fitch notes that while SI Group's refinanced revolver has 91-day
springing maturities to its Term Loan B (matures Oct. 15, 2025) and
its senior unsecured notes (May 15, 2026), the company has
sufficient runway to address those maturities.
ISSUER PROFILE
SI Group (SK Mohawk Holdings, SARL) provides polymers, fuel,
lubricant and industrial additives and chemical intermediates for
use in a number of end-markets, including plastics, fuels, tires,
oilfield chemicals, food packaging, and surfactants.
Rating Prior
------ -----
Polar US Borrower, LLC LT IDR B Affirmed B
senior secured LT BB- Affirmed RR2 BB-
senior unsecured LT CCC+ Affirmed RR6 CCC+
SK Mohawk Holdings, SARL LT IDR B Affirmed B
SNOWBIRD II: Taps Law Offices of Kevin S. Neiman as Counsel
-----------------------------------------------------------
The Snowbird II Condominiums Association, Inc. seeks approval from
the U.S. Bankruptcy Court for the District of Colorado to hire the
Law Offices of Kevin S. Neiman, PC as its bankruptcy counsel.
The firm's services include:
a. providing legal advice to the Debtor with respect to its
powers and duties;
b. advising the Debtor with respect to its responsibilities in
complying with the U.S. Trustee's Operating Guidelines and
Reporting Requirements and with the rules of the court;
c. preparing legal documents necessary in the administration
of the Debtor's Chapter 11 case;
d. protecting the interests of the Debtor in all matters
pending before the court; and
e. representing the Debtor in negotiating with its creditors
to prepare a plan of reorganization or exit plan.
The hourly rates of the firm's counsel and staff are as follows:
Kevin S. Neiman $375
Paralegal $125
In addition, the firm will seek reimbursement for expenses
incurred.
Kevin Neiman, Esq., an attorney at the Law Offices of Kevin S.
Neiman, 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:
Kevin S. Neiman, Esq.
Law Offices of Kevin S. Neiman, PC
999 18th Street, Suite 1230 S
Denver, CO 80202
Telephone: (303) 996-8637
Facsimile: (877) 611-6839
Email: kevin@ksnpc.com
About Snowbird II Condominiums Association
The Snowbird II Condominiums Association, Inc. filed a petition
under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. D.
Colo. Case No. 22-13181) on Aug. 23, 2022, listing up to $100,000
in assets and up to $1 million in liabilities. Harvey Sender serves
as Subchapter V trustee.
Judge Thomas B. Mcnamara presides over the case.
Kevin S. Neiman, Esq., at the Law Offices of Kevin S. Neiman, PC
represents the Debtor as counsel.
STAYMOBILE VENTURE: Online Auction for Components Underway
----------------------------------------------------------
The September 8 court-ordered bankruptcy liquidation of
StayMobile's former inventory of computer components is a rare
opportunity for student-device repair companies and other buyers
with technology needs, announced sale partners Tiger Group and
Liquid Asset Partners.
"It is a massive inventory of primarily new computer components,
repair parts and other items that suppliers need to keep schools
and businesses operating seamlessly," said Bill Melvin, CEO of
Grand Rapids, Michigan-based Liquid Asset Partners. "By picking up
former StayMobile assets in this sale, companies can go a long way
toward filling their warehouses and overcoming some of the worst
supply-chain bottlenecks in recent memory."
Bidding for the online auction is underway and closes on Thursday,
September 8, at 10 a.m. (EDT). The inventory is stored primarily at
StayMobile's former HQ in the Atlanta suburb of Kennesaw but also
is located in remote locations in Las Vegas, Philadelphia, San
Antonio and Greenville, SC.
This past May, Kennesaw-based StayMobile Venture LLC filed for
Chapter 7 bankruptcy in the U.S. Bankruptcy Court for the Eastern
District of Michigan.
"StayMobile was known all over the country for providing electronic
repair and protection for businesses, schools and consumers," said
George Laidlaw, Director of Business Development, Tiger Commercial
& Industrial. "For buyers, that translates into an opportunity to
acquire more than $5 million in computer components, including
top-selling products by brands such as Lenovo, Dell, HP, Acer,
Asus, Apple and Chromebook, to name a few."
The assets available at auction include:
-- thousands of laptops for parts supply
-- desktop computers
-- monitors
-- scanners
-- printers
-- projectors
-- repair/service tools
-- more than 200,000 protective cases
In addition, the online auction features pallet racking, a vehicle
fleet, carts, metro racks and packaging equipment and workstations.
Bidders will also find an array of totes, task chairs, lockers,
breakroom equipment, stackable chairs and hand trucks.
At the Kennesaw location only, inspections are available by
appointment on September 1-2 and 6-8 from 9:00 a.m. to 5:00 p.m.
(EDT). In Greenville, SC, Philadelphia, Las Vegas and San Antonio,
inspections are available by appointment on Wednesday, September 7,
from 10:00 a.m. to 4:00 p.m. local time.
To arrange an inspection or obtain other information, contact
auctions@tigergroup.com, (805) 497-4999, or sales@liquidap.com,
(616) 719-5917.
For asset photos, descriptions, and other information, visit
https://soldtiger.com/sales/staymobile/
To access sale on Proxibid, visit:
https://www.proxibid.com/Liquid-Asset-Partners/StayMobile-Bankruptcy-Online-Auction/event-catalog/227863
For more information, contact George Laidlaw,
glaidlaw@tigergroup.com, (616) 481-1875, or Bill Melvin,
bill@liquidap.com, (616) 450-0691.
Media Contacts: At Tiger Group, Maria Hoang, (805) 497-4999,
343836@email4pr.com. At Jaffe Communications, Elisa Krantz, (908)
789-0700, 343836@email4pr.com.
STRATEGIC EQUITY VENTURES: Files Bare-Bones Petition
----------------------------------------------------
Strategic Equity Ventures LLC filed for chapter 11 protection
without stating a reason.
According to court filings, Strategic Equity Ventures 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
Oct. 11, 2022, at 9:30 a.m. at UST-LA2, TELEPHONIC MEETING.
CONFERENCE LINE: 1-866-816-0394, PARTICIPANT CODE:5282999.
Proofs of claim are due by Dec. 27, 2022.
About Strategic Equity Ventures LLC
Strategic Equity Ventures LLC sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 22-14746) on
August 30, 2022. In the petition signed by William S. Ho, as
managing member, the Debtor reported assets between $1 million and
$10 million and liabilities up to $50,000.
The Debtor is represented by Louis J Esbin of Law Offices of Louis
J. Esbin.
SUNGARD AS: Court Approves $52.5 Million Sale of Assets to 365 SG
-----------------------------------------------------------------
Judge David R. Jones of the U.S. Bankruptcy Court for the Southern
District of Texas authorized Sungard AS New Holdings, LLC, and its
affiliates to sell assets they owned, held, or used primarily in
the conduct of the business to 365 SG Operating Co. LLC for $52.5
million, subject to adjustment.
in accordance with the terms of their Asset Purchase Agreement
dated July 28, 2022.
The Sale Hearing was held on Aug. 31, 2022, at 10:00 a.m. (CT).
The Debtors are authorized and directed to perform under the APA
and all ancillary documents filed therewith or described therein.
They are authorized to hold the Good Faith Deposit, which will be
funded by the Buyer in accordance with the APA, and release and
deliver such Good Faith Deposit pursuant to the terms of such APA.
Pursuant to Bankruptcy Code sections 105(a) and 365, the Debtors
are authorized and directed to assume and assign the Purchased
Contracts to the Buyer, pursuant to the terms of the APA, free and
clear of all Encumbrances (other than Assumed Liabilities and
Permitted Liens). In accordance with the Bidding Procedures Order,
the Buyer will establish a cash reserve with respect to any
disputed Cure Costs that are subject to a Preserved Cure
Objection.
Except as otherwise provided in the Sale Order and the APA, all
rights of the respective Debtors' estates with respect to the
allocation of consideration received from the Buyer in connection
with the 365 Sale Transaction are expressly reserved for later
determination by the Court and, to the extent consideration is
received by any Debtor that is determined to be allocable to
another Debtor, such other Debtor will have a claim against the
recipient Debtor with the status of an expense of administration in
the case of the recipient Debtor under Bankruptcy Code section
503(b).
Notwithstanding anything in the Sale Order or the APA to the
contrary, the Term Loan DIP Liens and the ABL DIP Liens will attach
to all cash proceeds of the 365 Sale Transaction in accordance with
the Final DIP Order. Such proceeds will be retained by the Debtors
and will not be disbursed absent consent of the Required Term Loan
DIP Lenders, Required ABL DIP Lenders, and the Committee (only to
the extent of the Committee's settlement contained in the Final DIP
Order) or further order of the Court, which order may be an order
confirming the Debtors' chapter 11 plan.
In resolution of the objection filed by (i) City of Allen, Allen
Independent School District, Dallas County, Harris County, Irving
Independent School District and Tarrant County (ii) Collin County,
Collin County Community College District, and (iii) Maricopa County
Treasurer, the liens, if any, on the Debtors' assets securing
incurred tax obligations held by the Taxing Authorities will attach
to the proceeds of the sale of any of the Debtors' assets located
in the state of Texas and the State of Arizona, to the same extent
and with the same priority as such Tax Liens attached to such
assets immediately prior to the Closing.
The automatic stay pursuant to Bankruptcy Code section 362 is
modified with respect to the Debtors to the extent necessary,
without further order of the Court, to allow the Buyer to deliver
any notice provided for in the APA and allow the Buyer to take any
and all actions permitted or required under the APA in accordance
with the terms and conditions thereof.
Within one business day of the occurrence of the Closing Date of
the 365 Sale Transaction, the Debtors will file and serve a notice
of same.
Notwithstanding anything to the contrary in the Sale Order and the
Transaction Documents, the Debtors intend to seek recognition of
the Sale Order from the Canadian Court with respect to certain
Purchased Contracts and Purchased Assets that Sungard AS Canada is
party to or owns.
The requirements set forth in Bankruptcy Rule 6004(a) and Local
Rule 6004-1 are satisfied.
All time periods set forth in the Sale Order will be calculated in
accordance with Bankruptcy Rule 9006(a).
A copy of APA is available for free at https://tinyurl.com/tf3jzsue
from PacerMonitor.com free of charge.
About Sungard AS New Holdings
Sungard Availability Services is a Wayne, Pa.-based
information-technology services provider owned by Angelo Gordon,
Blackstone Credit, FS/KKR Advisor LLC and Carlyle Group Inc. It
provides disaster recovery services, colocation and network
services, cloud and managed services and workplace recovery to
customers in North America, Europe and Asia.
The company and its affiliates filed for Chapter 11 protection
twice in three years.
Sungard filed for Chapter 11 bankruptcy in 2019 with a prepackaged
plan that was approved by a New York bankruptcy court one day
after
it was filed.
Sungard AS New Holdings, LLC and affiliates, including Sungard
Availability Services, LP, sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. S.D. Texas Case No. 22-90018) on April
11, 2022. Judge David R. Jones oversees the case.
In the petition signed by Michael K. Robinson, CEO and president,
Sungard AS disclosed up to $1 billion in both assets and
liabilities.
Sungard Availability Services (UK) Limited, an indirect subsidiary
of Holdings, entered into administration in the UK on March 25,
2022. Meanwhile, Sungard Canada filed an application for
recognition in Canada under the Companies Creditors' Arrangement
Act of its Chapter 11 case.
Akin Gump Strauss Hauer & Feld LLP and Jackson Walker serve as
legal counsel to the Debtors. Cassels Brock & Blackwell LLP,
serves
as their Canadian legal counsel. DH Capital, LLC and Houlihan
Lokey, Inc., act as investment bankers. FTI Consulting, Inc.
serves as financial and restructuring advisor.
Alvarez & Marsal Canada Inc., serves as Canadian court-appointed
information officer and is represented by Bennett Jones, LLP as
counsel in connection with the Canadian proceedings.
Kroll Restructuring Administration, LLC serves as notice and
claims
agent.
Proskauer Rose, LLP and Gray Reed & McGraw, LLP serve as counsel
to
Acquiom Agency Services LLC, the Term Loan DIP agent, and Term
Loan
DIP lenders.
PNC Bank, National Association, serves as administrative agent and
collateral agent, under the DIP ABL facility. PNC is represented
by Thompson Coburn Hahn & Hessen LLP as counsel.
T M GRACE BUILDERS: $1.4MM Sale of Franktown Asset to Schwabs OK'd
------------------------------------------------------------------
Judge Kimberly H. Tyson of the U.S. Bankruptcy Court for the
District of Colorado authorized T M Grace Builders, Inc.'s sale of
its residential property located at 2740 Morning Run Court, in
Franktown, Colorado 80116, to Steven and Melissa Schwab for $1.4
million, pursuant to the terms and conditions set forth in the
Contract to Buy and Sell Real Estate (Residential).
The sale is free and clear of all liens and other interests, with
all liens and other interests attaching to the proceeds of the
sale.
The Debtor is authorized to pay necessary costs of closing in
accordance with the Contract, including broker's commission,
property taxes, pro-rated Homeowners Association dues, and all
other ordinary and customary closing costs. All remaining proceeds
from the sale will be paid into the registry of the Court pending
further order of the Court.
About T M Grace Builders
T M Grace Builders, Inc. is a Colorado corporation engaged as a
construction contractor and residential home builder operating in
the Denver Metro and surrounding areas.
T M Grace Builders sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Colo. Case No. 22-12026) on June 6,
2022, listing up to $50 million in assets and up to $10 million in
liabilities. Anton Shafer, president of T M Grace Builders, signed
the petition.
Judge Kimberley H. Tyson oversees the case.
Jeffrey S. Brinen, Esq., at Kutner Brinen Dickey Riley, P.C. is
the
Debtor's counsel.
TALEN ENERGY: Gets Court Okay to Raise $1.55 Bil. From Creditors
----------------------------------------------------------------
Steven Church of Bloomberg News reports that Talen Energy Supply
won court approval for an agreement that would raise at least $1.55
billion from creditors to help the company get out of bankruptcy
after cutting a deal with senior lenders.
The backstop agreement is designed to guarantee that noteholders
buy $1.55 billion worth of the $1.9 billion in new shares that
Talen has proposed selling to finance its reorganization.
The approval by a federal judge in Houston is an important step
forward in the company's plan to cut debt and restructure while in
bankruptcy. Talen still must file a plan of reorganization and
convince enough creditors to vote on the plan.
About Talen Energy Corp.
Allentown, Pennsylvania-based Talen Energy Corp. is an independent
power producer founded in 2015. Riverstone Holdings LLC completed
its acquisition of the remaining 65% stake of Talen Energy in 2016
for $5.2 billion.
Talen Energy Corporation, through subsidiary Talen Energy Supply
LLC, is one of the largest competitive power generation and
infrastructure companies in North America. Through subsidiary
Cumulus Growth, TEC is developing a large-scale portfolio of
renewable energy, battery storage, and digital infrastructure
assets across its expansive footprint. On the Web:
https://www.talenenergy.com/
TES owns and/or controls approximately 13,000 Megawatts of
generating capacity in wholesale U.S. power markets, principally in
the Mid-Atlantic, Texas and Montana. Woodlands, Texas-based TES
runs 18 power generation facilities, at eight of which rely on
natural gas to make electricity.
Talen Energy Supply, LLC, and 71 affiliates sought Chapter 11
protection (Bankr. S.D. Tex. Lead Case No. 22-90054) on May 9,
2022. The Hon. Marvin Isgur is the case judge.
Talen Energy Corporation (TEC), its Cumulus Growth subsidiary, and
TES' LMBE subsidiaries are excluded from the in-court process.
TES has retained Weil Gotshal & Manges LLP as its legal advisor,
Evercore as its investment banker and Alvarez & Marsal as its
financial advisor for its restructuring. Kroll is the claims
agent.
TEC is represented by PJT Partners as financial advisors and Vinson
& Elkins as legal counsel.
Cumulus Growth is represented by Ardea Partners and DH Capital as
its investment bankers, and Gibson Dunn as legal counsel.
The Consenting Noteholders are represented by Kirkland & Ellis LLP
and Rothschild & Co US Inc.
TALEN ENERGY: K&E, Zack Clement Update on Noteholders Group
-----------------------------------------------------------
In the Chapter 11 cases of Talen Energy Supply, LLC, et al., the
law firms of Kirkland & Ellis LLP and Zack A. Clement PLLC
submitted a first amended verified statement under Rule 2019 of the
Federal Rules of Bankruptcy Procedure, to disclose that they are
representing the Ad Hoc Group of Unsecured Noteholders.
The ad hoc group of certain unaffiliated holders of approximately
70.12% of Debtor Talen Energy Supply, LLC's total unsecured funded
debt, consisting primarily of approximately 77.37% of TES's 6.500%
senior unsecured notes due 2025, approximately 72.74% of TES's
10.500% senior unsecured notes due 2026, approximately 45.30% of
TES's 6.000% senior unsecured notes due 2036.
Counsel represents only the Ad Hoc Group of Unsecured Noteholders,
and does not represent or purport to represent any entity other
than the Ad Hoc Group of Unsecured Noteholders, in connection with
these chapter 11 cases.
As of Aug. 29, 2022, members of the Ad Hoc Group Unsecured
Noteholders and their disclosable economic interests are:
ACR Alpine Capital Research LLC
8000 Maryland Avenue Suite 700
St. Louis, MO 63105
* 2025 Senior Notes: $1,000,000
* 2026 Senior Notes: $4,000,000
Appaloosa LP
51 JFK Parkway
Short Hills, NJ 07078
Boothbay Fund Management, LLC
140 E 45th Street 14th Floor
New York, NY 10017
* 2025 Senior Notes: $1,500,000
* 2026 Senior Notes: $6,000,000
* 2036 Senior Notes: $1,000,000
Carronade Capital Management, LP
17 Old Kings Highway South Suite 140
Darien, CT 06820
* 2025 Senior Notes: $28,527,000
* 2026 Senior Notes: $11,250,000
CastleKnight Management LP
810 Seventh Avenue Suite 803
New York, NY 10019
* 2026 Senior Notes: $13,062,000
* 2036 Senior Notes: $13,500,000
Citadel Equity Fund Ltd.
US Fundamental Credit
520 Madison Avenue
New York, NY 10022
* 2025 Senior Notes: $22,000,000
* 2026 Senior Notes: $71,600,000
Citigroup, N.A.
1 Penns Way
Ops 2 Floor 2
New Castle, DE 19720
* 2025 Senior Notes: $120,000
* 2026 Senior Notes: $5,500,000
* DIP Facility: $6,649,224.66
* 7.25% Secured Notes due 2027: $1,000,000
* 6.625% Secured Notes due 2028: $2,750,000
* 7.625% Secured Notes due 2028: $10,012,000
Contrarian Capital Management, L.L.C.
411 West Putnam
Avenue Suite 425
Greenwich, CT 06830
* 2025 Senior Notes: $1,002,000
* 2026 Senior Notes: $7,000,000
Corbin Capital Partners, L.P.
590 Madison Avenue 31st Floor
New York, NY 10022
* 2025 Senior Notes: $10,000,000
* 2026 Senior Notes: $8,000,000
CSS, LLC
175 W. Jackson Blvd Suite 440
Chicago, IL 60604
* 2025 Senior Notes: $4,000,000
* 2027 Senior Notes: $1,366,000
* 2036 Senior Notes: $4,493,000
FourSixThree Capital LP
520 Madison Avenue 19th Floor
New York, NY 10022
* 2025 Senior Notes: $9,500,000
* 2026 Senior Notes: $13,000,000
FourWorld Capital Management, LLC,
7 World Trade Center Floor 46
New York, NY 10007
* 2025 Senior Notes: $4,800,000
* 2026 Senior Notes: $8,000,000
* 2027 Senior Notes: $1,883,000
* 2036 Senior Notes: $5,750,000
Franklin Advisers, Inc.
One Franklin Parkway
San Mateo, CA 94403
* 2025 Senior Notes: $41,450,000
* 2026 Senior Notes: $5,900,000
* 7.25% Secured Notes due 2027: $16,000,000
* 7.625% Secured Notes due 2028: $2,700,000
Jefferies LLC
520 Madison Avenue
New York, NY 10022
* 2022 Senior Notes: $20,000
* 2024 Senior Notes: $30,000
* 2025 Senior Notes: $612,000
* 2026 Senior Notes: $3,991,000
* 2027 Senior Notes: $452,000
* 2036 Senior Notes: $656,000
* 6.625% Secured Notes due 2028: $125,000
* 7.625% Secured Notes due 2028: $1,070,000
King Street Capital Management, L.P.
299 Park Avenue 40th Floor
New York, NY 10171
* 2026 Senior Notes: $14,000,000
Livello Capital Management LP
1 World Trade Center 85th Floor
New York, NY 10007
* 2025 Senior Notes: $10,000,000
* 2026 Senior Notes: $6,500,000
Lord, Abbett & Co. LLC
90 Hudson Street
Jersey City, NJ 07302
* 2025 Senior Notes: $38,749,000
Maple Rock Capital Partners Inc.
21 St. Clair Ave E Suite 1100
Toronto, Ontario M4T 1L9
* 2024 Senior Notes: $2,500,000
* 2025 Senior Notes: $16,800,000
* 2026 Senior Notes: $36,052,000
* 2027 Senior Notes: $1,000,000
* 2036 Senior Notes: $1,233,000
Nuveen Asset Management, LLC
333 West Wacker Drive
Chicago, Illinois 60606
* 2025 Senior Notes: $16,900,000
* 2026 Senior Notes: $56,000,000
* 2036 Senior Notes: $7,210,000
* 2038 Municipal Bonds: $77,100,000
* 7.25% Secured Notes due 2027: $8,000,000
* 6.625% Secured Notes due 2028: $15,000,000
* Term Loan: $36,318,681.20
Philosophy Capital Management LLC
3000 Sand Hill Road
Building 4, Suite 110
Menlo Park, CA 94025
* 2025 Senior Notes: $14,900,000
* 2026 Senior Notes: $11,250,000
Rubric Capital Management LP
155 East 44th Street Suite 1630
New York, NY 10017
* 2022 Senior Notes: $2,673,000
* 2025 Senior Notes: $160,890,000
* 2026 Senior Notes: $133,080,000
* 2036 Senior Notes: $3,630,000
System 2 Master Fund Limited
190 Elgin Avenue George Town
Grand Cayman KY1-9008
Cayman Islands
* 2026 Senior Notes: $7,500,000
* 2036 Senior Notes: $6,500,000
Two Seas Capital LP
32 Elm Place 3rd Floor
Rye, NY 10580
* 2025 Senior Notes: $24,000,000
* 2026 Senior Notes: $19,616,000
* 2036 Senior Notes: $10,669,000
Co-Counsel for the Ad Hoc Group of Unsecured Noteholders can be
reached at:
ZACK A. CLEMENT PLLC
Zack A. Clement, Esq.
3753 Drummond Street
Houston, TX 77025
Tel: (832) 274-7629
E-mail: zack.clement@icloud.com
- and -
KIRKLAND & ELLIS LLP
KIRKLAND & ELLIS INTERNATIONAL LLP
Patrick J. Nash, Jr., Esq.
Christopher S. Koenig, Esq.
300 North LaSalle Street
Chicago, IL 60654
Tel: (312) 862-2000
Fax: (312) 862-2200
E-mail: patrick.nash@kirkland.com
chris.koenig@kirkland.com
- and -
Steven N. Serajeddini, Esq.
601 Lexington Avenue
New York, NY 10022
Tel: (212) 446-4600
Fax: (212) 446-4800
E-mail: steven.serajeddini@kirkland.com
A copy of the Rule 2019 filing, downloaded from PacerMonitor.com,
is available at https://bit.ly/3wW2hT6 and https://bit.ly/3KKaGyS
About Talen Energy Corp.
Allentown, Pennsylvania-based Talen Energy Corp. is an independent
power producer founded in 2015. Riverstone Holdings LLC completed
its acquisition of the remaining 65% stake of Talen Energy in 2016
for $5.2 billion.
Talen Energy Corporation, through subsidiary Talen Energy Supply
LLC, is one of the largest competitive power generation and
infrastructure companies in North America. Through subsidiary
Cumulus Growth, TEC is developing a large-scale portfolio of
renewable energy, battery storage, and digital infrastructure
assets across its expansive footprint. On the Web:
https://www.talenenergy.com/
TES owns and/or controls approximately 13,000 Megawatts of
generating capacity in wholesale U.S. power markets, principally in
the Mid-Atlantic, Texas and Montana. Woodlands, Texas-based TES
runs 18 power generation facilities, at eight of which rely on
natural gas to make electricity.
Talen Energy Supply, LLC, and 71 affiliates sought Chapter 11
protection (Bankr. S.D. Tex. Lead Case No. 22-90054) on May 9,
2022. The Hon. Marvin Isgur is the case judge.
Talen Energy Corporation (TEC), its Cumulus Growth subsidiary, and
TES' LMBE subsidiaries are excluded from the in-court process.
TES has retained Weil Gotshal & Manges LLP as its legal advisor,
Evercore as its investment banker and Alvarez & Marsal as its
financial advisor for its restructuring. Kroll is the claims
agent.
TEC is represented by PJT Partners as financial advisors and Vinson
& Elkins as legal counsel.
Cumulus Growth is represented by Ardea Partners and DH Capital as
its investment bankers, and Gibson Dunn as legal counsel.
The Consenting Noteholders are represented by Kirkland & Ellis LLP
and Rothschild & Co US Inc.
TANORE FINANCE: Chapter 15 Case Summary
---------------------------------------
Chapter 15 Debtor: Tanore Finance Corporation
Trident Chambers
P.O. Box 146
Road Town, Tortola VG1110
British Virgin Islands
Foreign Proceeding: Eastern Caribbean Supreme Court, High
Court of the BVI, Commercial Division
Chapter 15 Petition Date: August 31, 2022
Court: United States Bankruptcy Court
Southern District of Florida
Case No.: 22-16803
Foreign
Representatives: Angela Barkhouse
Helen Janes
Carl Jackson
142 Seafarers Way
George Town, Grand Cayman KY1-9006
Cayman Islands
Foreign
Representatives'
Counsel: Gregory S. Grossman, Esq.
Juan J. Mendoza, Esq.
Jennifer Mosquera, Esq.
SEQUOR LAW, P.A.
1111 Brickell Avenue, Suite 1250
Miami, FL 33131
Tel: (305) 372-8282
Email: ggrossman@sequorlaw.com
jmendoza@sequorlaw.com
jmosquera@sequorlaw.com
Estimated Assets: Unknown
Estimated Liabilities: Unknown
A full-text copy of the Chapter 15 petition is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/YFUXXFI/Tanore_Finance_Corporation__flsbke-22-16803__0001.0.pdf?mcid=tGE4TAMA
THE JOHN V. GALLY FAMILY: Trust Files for Chapter 11 Bankruptcy
---------------------------------------------------------------
The John V. Gally Family Protective Trust Inc. has sought
bankruptcy protection in Arizona without stating a reason. The
Debtor filed as a small business debtor seeking relief under
Subchapter V of Chapter 11 of the Bankruptcy Code.
The Trust's balance sheet at July 31, 2022, showed $5.053 million
in total assets, including $273,000 in current assets, against
total liabilities of $231,600.
The Trust had a net loss of $310,400 for the period January to July
2022.
According to court filing, the Trust 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
Oct. 4, 2022, at 9:00 AM as a Telephonic Hearing.
Proofs of claim are due Nov. 8, 2022.
About The John V. Gally Family Protective Trust
The John V. Gally Family Protective Trust Inc. is a domestic
business trust in Arizona.
The John V. Gally Family Protective Trust filed a petition for
relief under Subchapter V of Chapter 11 of the Bankruptcy Code
(Bankr. D. Ariz. Case No. 22-05770) on Aug. 30, 2022. In the
petition filed by Caryn K. Mangisi, as Trustee, the Debtor reported
assets between $1 million and $10 million and liabilities of the
same range.
The Debtor is represented by Bradley David Pack of ENGELMAN BERGER
PC.
The Subchapter V trustee:
JAMES E. CROSS
Cross Law Firm, PLC
PO Box 45469
Phoenix, AZ 85064
Tel: 602-412-4422
Fax: 480-452-1867
Email: jcross@crosslawaz.com
TIGER ACQUISITION: Moody's Cuts CFR to B3 & First Lien Debt to B2
-----------------------------------------------------------------
Moody's Investors Service downgraded the ratings of Tiger
Acquisition, LLC (dba "Sabre Industries, Inc.", "Sabre") including
the Corporate Family Rating and Probability of Default Rating to B3
and B3-PD, respectively from B2 and B2-PD. Concurrently, Moody's
downgraded Sabre's first lien senior secured bank credit facility
ratings to B2 from B1. The ratings outlook is stable.
The ratings downgrade is driven by continued macroeconomic-related
supply chain and inflationary cost pressures. Due to the
aforementioned, although Moody's expects credit metric improvement
over the next 12 to 18 months, leverage will remain above the
levels expected for the B2 rating. Additionally, rising interest
rates will consume incremental cash flow which will constrain debt
repayment and meaningful deleveraging, despite the company having
some hedging instruments in place.
The following rating actions were taken:
Downgrades:
Issuer: Tiger Acquisition, LLC
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, Downgraded to B2 (LGD3) from B1
(LGD3)
Senior Secured 1st Lien Revolving Credit Facility, Downgraded to
B2 (LGD3) from B1 (LGD3)
Outlook Actions:
Issuer: Tiger Acquisition, LLC
Outlook, Remains Stable
RATINGS RATIONALE
Sabre's B3 Corporate Family Rating (CFR) reflects its very high
leverage and moderate revenue scale. The B3 CFR also incorporates
Sabre's vulnerability to capex and infrastructure spending cycles
in the telecom business (less than 25% of revenue), which can be
volatile. Further, Sabre's work is contract based, so the company
must consistently replace maturing contracts with new ones in order
to avoid meaningful swings in operating performance. However,
Moody's notes that the contracts are multi-year and that the
company has a solid track record of contract renewal and strong
backlog of existing orders. The company is also geographically
concentrated in the US.
These risks are balanced against Sabre's leading market positions
and high revenue visibility. The company is a leader in providing
engineered structures to the telecom and utilities industries and
has long-term strategic relationships with key customers. Long-term
favorable dynamics underlying the company's utility and telecom
businesses will continue to drive positive demand over the next
12-18 months. These dynamics include strong spending by utilities
customers to support "grid hardening", or the upgrading and
strengthening of their infrastructure, particularly in light of
increasing incidence of extreme weather events. Telecommunications
customers also continue to invest in their infrastructure to
enhance their networks reliability and connectivity.
The stable outlook is based on Moody's expectation that supply
chain challenges and labor shortages will ease in the next 12-18
months, allowing for a partial recovery in earnings and cash flow
versus FY22.
Sabre's adequate liquidity is supported by Moody's expectation that
the company's free cash flow will be positive in fiscal 2023 and
improve thereafter. The company also has an undrawn $125 million
revolving credit facility and no near-term debt maturities. Moody's
notes that the company utilizes a $125 million securitization
facility maturing in 2025 with $85 million drawn under the
facility. The company's term loan does not have financial
maintenance covenants. However, the revolving credit facility has a
springing covenant when more than 40% of the facility is drawn.
Currently, if tested, the company would be in compliance with the
covenant.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
A weakening of the company's liquidity or failure to meaningfully
improve margins and free cash flow versus recent quarters could
lead to a downgrade of the ratings. A more aggressive financial
policy, including any actions that would further increase financial
leverage such as a dividend, would also exert downward ratings
pressure.
Healthy organic revenue and earnings growth accompanied by
meaningful debt reduction such that debt/EBITDA improves to the 5.5
times level could support an upgrade. The ratings could also be
upgraded if Sabre meaningfully improves liquidity and demonstrates
reduced quarterly earnings and cash flow variability.
Headquartered in Alvarado, Texas, Sabre Industries, Inc.
manufactures towers, poles, equipment enclosures and related
transmission structures used in the wireless communications and
electric transmission and distribution industries. The company is
owned by Blackstone.
The principal methodology used in these ratings was Manufacturing
published in September 2021.
TOSCANA LUNA: Rental Income to Fund Plan Payments
-------------------------------------------------
Toscana Luna, LLC, filed with the U.S. Bankruptcy Court for the
Eastern District of Louisiana a Disclosure Statement in connection
with the Plan of Reorganization dated August 30, 2022.
Debtor is a Louisiana limited liability company which was formed in
2011. Strategic Property Investments, LLC owns 100% of the
membership interests in the Debtor. Mark Subervielle is a Manager
of the Debtor.
In September 2016, Norma Schiffman Webb, then sole manager/member
of the Debtor, Toscana Luna, LLC, sold her membership interest in
the Debtor to Strategic Property Investments, LLC ("Strategic
Property"). The Debtor is the title holder of the building at 505
Frisco Avenue, Metairie, Louisiana 70005.
The Debtor's income is generated by the rental payment received
from the tenant business, Nor-Joe Imports, LLC. For years
subsequent to the purchase, the business suffered from assumed
debts, poor vendor and customer relations inherited by Strategic
Property from Webb, and damage to the business' brand by Webb and
her daughter, Vanessa Miranda.
On or about January 3, 2022, Vanessa Miranda, daughter of Webb,
filed a Petition for Executory Process, to Enforce Sale, Vendor's
Lien and Other Relief in the 24th Judicial District Court for the
Parish of Jefferson, Louisiana, naming Debtor as a defendant.
Debtor filed this bankruptcy on March 29, 2022.
The Debtor will fund the Plan from the receipt of rental income
received from its tenant, Nor-Joe Imports, LLC.
Equity Interest holder, Strategic Property Investments, LLC will
retain its membership in the Debtor. Debtor is unaware of any
unsecured creditors at this time. Any allowed unsecured creditors
will receive a pro-rata share of their claim up to the full amount
of the Debtor's liquidation value, over a period no longer than 60
months from the Effective Date.
Class 1 consists of the Secured Claim of Graystar Mortgage.
Graystar Mortgage Secured Claim in the amount of $350,000.00. Claim
paid over 25 years at the Prime Rate plus 1.5%. The Class 1 claim
is secured by a first ranking mortgage upon the Debtor's property,
505 Frisco Avenue, Metairie, Louisiana. Graystar shall retain the
mortgage on Debtor's property until its claim is paid in full.
Class 2 consists of the Secured Claim of Vanessa Miranda. Claim of
Vanessa Miranda. Proof of Claim No. 1 in the amount of $879,500.
Claim is disputed. Debtor will pay the Class 2 claim the value of
its claim secured by the collateral over 25 years at the Prime Rate
plus 3.0%. The Class 2 claim is secured by a second-ranking
mortgage upon the Debtor's property, 505 Frisco Avenue, Metairie,
Louisiana 70005. Vanessa Miranda shall retain the mortgage on the
Debtor's property until the value of its secured claim is paid in
full.
Debtor believes that the Plan is feasible. The Debtor receives
rental income from its tenant, Nor-Joe Imports, LLC in the amount
of $5,000.00 per month, which monthly amount will increase to
$7,000.00 per month in approximately October 2022. The Debtor will
amend its lease agreement with Nor-Joe Imports, LLC to include the
increase in the monthly rental rate.
A full-text copy of the Disclosure Statement dated August 30, 2022,
is available at https://bit.ly/3wWoH6H from PacerMonitor.com at no
charge.
Attorney for Debtor:
Patrick S. Garrity, Esq.
The Derbes Law Firm, LLC
3027 Ridgelake Drive
Metairie, LA 70002
Tel: (504) 837-1230
Fax: (504) 837-2214
Email: pgarrity@derbeslaw.com
About Toscana Luna
Toscana Luna, LLC, a company in Metairie, La., sought protection
under Chapter 11 of the Bankruptcy Code (Bankr. E.D. La. Case No.
22-10328) on March 29, 2022, listing as much as $10 million in both
assets and liabilities.
Judge Meredith S. Grabill oversees the case.
The Derbes Law Firm, LLC, led by Patrick S. Garrity, Esq., is the
Debtor's legal counsel.
TOSON FOOD: Wins Cash Collateral Access Thru Sept 20
----------------------------------------------------
The U.S. Bankruptcy Court for the District of New Jersey authorized
Toson Food & Beverages North Plainfield, LLC to use the cash
collateral of M&T Bank on an interim basis in accordance with the
budget, with a 15% variance through September 20, 2022.
The Debtor requires the use of cash collateral and and to continue
its prepetition financing arrangements with the Bank, in order to
continue its business operations without interruption.
On the Petition, the Debtor was indebted to the Bank in the amount
of $1,208,280 in principal and $36,017 in interest, plus fees and
costs, pursuant to a promissory note dated February 8, 2017, and
the loan documents between the Bank and the Debtor.
As adequate protection, the Bank is granted a replacement perfected
security interest in all post-petition assets of the Debtor,
including post-petition inventory, deposit accounts and accounts
receivable, under Section 361(2) of the Bankruptcy Code to the
extent the Bank's cash collateral is used by the Debtor, to the
extent and with the same priority in the Debtor's post-petition
collateral, and proceeds thereof, that the Bank held in the Bank
Collateral prepetition. The replacement perfected security interest
will not extend to (a) avoidance actions under Chapter 5 of the
Bankruptcy Code and the proceeds thereof and (b) the Debtor's
liquor license.
To the extent the adequate protection provided in the Order proves
insufficient to protect the Bank's interest in and to the cash
collateral, the Bank will have a superpriority administrative
expense claim, pursuant to Section 507(b) of the Bankruptcy Code.
The liens and security interests granted are automatically deemed
perfected upon entry of the Order without the necessity of the Bank
taking possession, filing financing statements, mortgages or other
documents.
The Bank has agreed to carve-out from its pre-petition and
postpetition security interests and liens on and in the Bank
Collateral and from the adequate protection granted herein the
following: (a) all fees required to be paid to the Clerk of the
Bankruptcy Court and to the Office of the United States Trustee
pursuant to 28 U.S.C. section 1930(a) (6) and 28 U.S.C. section
156(b) and (b) the allowed fees and expenses of counsel to the
Debtor up to $25,000.
A final hearing on the matter is set for September 20 at 10 a.m.
A copy of the order is available at https://bit.ly/3ekkKCC from
PacerMonitor.com.
About Toson Food & Beverages North Plainfield, LLC
Toson Food & Beverages North Plainfield, LLC operates a
bar/restaurant out of its single location at 1250 US Highway Rte 22
East, North Ptainfield, New Jersey.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. N.J. Case No. 22-16670) on August 24,
2022. In the petition signed by Cordell Toson, sole member, the
Debtor disclosed up to $50,000 in both assets and liabilities.
Judge Christine M. Gravelle oversees the case.
Harry J. Giacometti, Esq., at Flaster/Greenberg, P.C. is the
Debtor's counsel.
TRX HOLDCO: Founder Randy Hetrick Regains Control of Business
-------------------------------------------------------------
Fit Insider reports that after buying TRX out of bankruptcy, its
founder Randy Hetrick is back at the helm.
Founded in 2004, TRX is known for suspension training straps,
selling in 30+ countries and certifying 300K trainers based on its
patented equipment. In 2018, TRX was acquired by private equity,
and in 2020 had its best financial year to date, posting $20
million EBITDA.
This June 2022, citing increased competition and macroeconomic
challenges, the debt-ridden company entered Chapter 11 bankruptcy
and sought a new buyer. That buyer turned out to be Randy
Hetrick.
Purchasing TRX at auction with partner Jack Daly of JFXD Capital,
Hetrick believes he can engineer a turnaround.
"TRX remains one of the fitness industry's most recognizable and
influential global brands, and under a new, experienced management
team – powered by passion and renewed vision -- our brand will
build on its position as the most trusted name in fitness."
Between the lines: In conversations with top industry executives,
nearly everyone said brands must meet exercisers wherever they
are...which has been TRX's mission from the beginning.
Leveraging its equipment's versatility, and Hetrick's spinoff
mobile fitness company OutFit, TRX will look to revive that pursuit
quickly.
About TRX Holdco, LLC
TRX Holdco, LLC and Fitness Anywhere LLC, dba TRX and TRX Training,
provide sporting and athletic goods. They sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Lead Case
No. 22-10948) on June 8, 2022. In the petition signed by Brent
Leffel, chairman of the Board of Managers of TRX Holdco, LLC, the
Debtor disclosed up to $50 million in both assets and liabilities.
Judge Scott C. Clarkson oversees the case.
Ron Bender, Esq., at Levene, Neale, Bender, Yoo and Golubchick LLP,
is the Debtor's counsel.
UNION COLONY: Moody's Lowers Rating on 2018 Revenue Bonds to Ba2
----------------------------------------------------------------
Moody's Investors Service has downgraded the Charter School Revenue
Bonds (Union Colony School Project), Series 2018 of Union Colony
Schools, CO to Ba2 from Baa3. The school has approximately $18
million in revenue bonds outstanding. The outlook was revised to
negative from stable.
RATINGS RATIONALE
The downgrade to Ba2 from Baa3 reflects the school's continued
trend of enrollment decline which included a sharp drop in 2021, a
key social consideration, resulting in weak financial performance
and debt service coverage that unexpectedly fell below
sum-sufficient in fiscal 2021. Debt service coverage is projected
to remain below the coverage requirement in fiscal 2022, exclusive
of non-operating revenue, and is budgeted to narrowly meet the
minimum covenant coverage requirement in fiscal 2023. The school is
also hampered by outsized leverage inclusive of outstanding revenue
bonds and unfunded pension liabilities.
Governance is also a key driver of the downgrade as below
sum-sufficient coverage triggers several remedial steps as outlined
in the covenants, which have not occurred. Acceleration is a
default remedy available to bondholders as outlined in the
Indenture. The school's liquidity, while satisfactory relative to
its operations, is insufficient to repay the outstanding debt in
the event of an acceleration. Furthermore, payments under the
lease, as well as any potential draw on the Colorado Charter School
Debt Reserve Fund Program (CDRSF) are both subject to appropriation
by the respective entities. There is nothing in the state's Moral
Obligation Program that requires the state pay off the bonds if
they are accelerated.
The rating is supported by the maintenance of satisfactory
operating liquidity, a trend of increasing state per pupil revenue,
and the school's long charter contract which expires in 2031.
RATING OUTLOOK
The negative outlook reflects the expectation for continued
operating pressure over the next couple of years as the school
contends with declining enrollment. Inability to balance operations
and meet covenant requirements will result in downward rating
action.
FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATING
Material and sustained trend of enrollment growth
Significant strengthening of debt service coverage and operating
liquidity
Moderation of the school's leverage profile
FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATING
Continued trend of trend of enrollment loss
Material erosion of operating liquidity or coverage below bond
covenant requirements
LEGAL SECURITY
Union Colony's Series 2018 bonds were issued by the Colorado
Educational and Cultural Facilities Authority with proceeds loaned
to Union Colony Schools Building Corporation. Under the loan
agreement, the Building Corporation will make debt service payments
from pledged revenue, which consist of lease payments from Union
Colony Schools.
The structure benefits from the state's intercept mechanism, under
which the State Treasurer, on a monthly basis, will pay debt
service based upon 1/6 principal and 1/12 interest amounts,
directly to the Trustee from first available state aid payments
owed to Union Colony. The intercept provides protection against
liquidity issues or administrative error at the school level, but
it does not protect against a shortfall in per pupil revenue
stemming from a decline in enrollment or the termination of the
school's charter. In the event of default, the bonds are
additionally secured by a deed of trust on the Building
Corporation's property.
Bond covenants include a 45 days cash on hand requirement and
annual debt service coverage ratio of 1.2 times, unless the
school's days cash on hand are at least 75 days, then the debt
service coverage is 1.1 times. In the event the liquidity or
coverage covenants are not met, the school must retain a management
consultant. The school is required to retain the management
consultant until it has achieved a coverage ratio equal to the
required level for two consecutive fiscal years. The debt service
reserve was funded at MADS.
USE OF PROCEEDS
Not applicable.
PROFILE
Union Colony Schools, authorized by Weld County School District 6,
opened its doors in 1997 serving grades 8-12. It has since expanded
and currently serves grades K-12 across two different facilities in
Greeley and Evans, CO. The current academic year enrollment is 704
students.
METHODOLOGY
The principal methodology used in this rating was US Charter
Schools published in September 2016.
VASCO INVESTMENT: Chapter 15 Case Summary
-----------------------------------------
Chapter 15 Debtor: Vasco Investment Services S.A.
Level 1, Palm Grove House
Wickham's Cay 1
Road Town, Tortola VG1110
British Virgin Islands
Chapter 15 Petition Date: August 31, 2022
Court: United States Bankruptcy Court
Southern District of Florida
Case No.: 22-16808
Foreign Proceeding: Eastern Caribbean Supreme Court,
High Court of the BVI, Commercial
Division
Foreign Representatives: Angela Barkhouse
Helen Janes
Carl Jackson
142 Seafarers Way
George Town, Grand Cayman KY1-9006
Cayman Islands
Foreign Representatives'
Counsel: Gregory S. Grossman, Esq.
Juan J. Mendoza, Esq.
Jennifer Mosquera, Esq.
SEQUOR LAW, P.A.
1111 Brickell Avenue, Suite 1250
Miami, FL 33131
Tel: (305) 372-8282
Email: ggrossman@sequorlaw.com
jmendoza@sequorlaw.com
jmosquera@sequorlaw.com
Estimated Assets: Unknown
Estimated Liabilities: Unknown
A full-text copy of the Chapter 15 petition is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/YP7MR5Q/Vasco_Investment_Services_SA__flsbke-22-16808__0001.0.pdf?mcid=tGE4TAMA
VENUE CHURCH: Seeks Cash Collateral Access
------------------------------------------
Venue Church, Inc. asks the U.S. Bankruptcy Court for the Eastern
District of Tennessee, Southern Division, for authority to use cash
collateral on an interim basis.
The Debtor requires the use of cash collateral for the daily
operating expenses of the business.
First Citizens National Bank is a secured creditor in this case
with an interest/lien on real property.
The Debtor anticipates the sale of its real property located at
6401 Lee Highway, Chattanooga, TN 37421 with proceeds sufficient to
pay First Citizens National Bank's lien in full and pay all
creditors at 100%. Fair market value is approximately $4,000,000.
Debt owed to First Citizen National Bank is approximately
$2,770,000.
As for adequate protection for the limited use of cash collateral,
the Debtor offers a post-petition replacement lien to First
Citizens National Bank on cash collateral pursuant to and in
accordance with 11 U.S.C. sections 361(2) and 552(b): (a) to the
extent of cash collateral actually expended; (b) on the same assets
and in the same order of priority as currently exists; and (c) with
the Debtor's full reservation of rights.
A hearing on the matter is set for September 8, 2022 at 10:30 a.m.
A copy of the motion is available at https://bit.ly/3AIbfEN from
PacerMonitor.com.
About Venue Church Inc.
Venue Church Inc. is a megachurch in Tennessee.
Venue Church Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Tenn. Case No. 22-11829) on August 23,
2022. In its petition, it listed estimated assets less than $5
million and more than $3 million in mortgage, auto loan, and credit
card debt.
The case is overseen by Honorable Bankruptcy Judge Shelley D.
Rucker.
The Debtor is represented by The Law Firm Tom Bible Law.
VERDANT HOLDINGS: Seeks to Hire Valbridge Property as Appraiser
---------------------------------------------------------------
Verdant Holdings, LLC seeks approval from the U.S. Bankruptcy Court
for the Middle District of Pennsylvania to employ Valbridge
Property Advisors to conduct an updated appraisal of its real
property.
Valbridge will charge $5,000 for its services.
As disclosed in court filings, Valbridge is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
John F. Watt, MAI
Valbridge Property Advisors
4701 Baptist Road Suite 304
Pittsburgh, PA 15227
Phone: (412) 881-6080
Fax: (412) 881-8040
Email: jwatt@valbridge.com
About Verdant Holdings
Carlisle, Pa.-based Verdant Holdings, LLC filed its voluntary
petition for Chapter 11 protection (Bankr. M.D. Penn, Case No.
21-01938) on Sept. 2, 2021, disclosing up to $50 million in assets
and up to $10 million in liabilities. David Goldsmith, managing
director, signed the petition.
Judge Henry W. Van Eck oversees the case.
The Debtor tapped Cunningham, Chernicoff & Warshawsky, PC as legal
counsel and Chemel Kornick & Mooney, LLC and Gift CPAs as
accountants.
YACHATS RURAL: Moody's Cuts GOULT Rating to Ba1, Outlook Negative
-----------------------------------------------------------------
Moody's Investors Service has downgraded Yachats Rural Fire
Protection District, OR's general obligation unlimited tax (GOULT)
rating to Ba1 from Baa3. The rating action affects approximately
$7.4 million in rated debt. The outlook is negative.
RATINGS RATIONALE
The downgrade primarily reflects the district's worse than expected
2021 performance coupled with its failure to obtain voter approval
for a critical supplemental operating levy in November 2021. Fiscal
2021 continued the district's multi-year trend of financial
deterioration, ending with a negative fund balance position and
very narrow liquidity that was supported by reliance on cash flow
borrowing. The rating incorporates the expectation that the
district's balance sheet will improve modestly in 2022, largely due
to one-time proceeds from a sale of an old fire station, but absent
meaningful revenue and expenditure realignment and improved budget
management the district's structural imbalance will continue into
fiscal 2023. Governance is a key driver to the rating downgrade;
poor budgetary management has resulted in sustained structural
imbalance and increased cash flow borrowing, exacerbating the
financial strain on the district's small size of operations.
The Ba1 rating also reflects the district's small, rural and
tourism driven local economy on the Oregon Coast with below average
resident income offset by high full value per capita given the
significant presence of second homes in the area. The district's
elevated debt burden, high fixed costs, and manageable pension
liabilities are also factored into the rating.
RATING OUTLOOK
The negative outlook reflects Moody's expectation that despite
one-time budget relief in fiscal 2022 a return to cash flow
borrowing and further financial weakening is expected through
fiscal 2023. Rising expenditures and inability to secure an ongoing
recurring revenue source will pressure the district's financial
position in the immediate term. Management will likely return to
voters in the near term to seek approval of a new operating levy,
the passage of which will be critical to the district's credit
quality.
FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATING
Effective realignment of recurring revenue with recurring
expenditures
Improvement and stabilization of liquidity and reserve positions
Timely passage of supplemental operating levy
Material tax base growth and improvement in resident incomes
FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATING
Failure to secure passage of the district's new local option levy
Continued reliance on non-recurring one-time revenue and
deterioration of financial reserves and liquidity
Contraction of tax base and weakened economic indicators
Sustained growth in debt and fixed costs burden
LEGAL SECURITY
GOULT debt is secured by the district's full faith, credit and
unlimited property tax pledge. Debt service for GOULT bonds in
Oregon is funded by a separate property tax levy that is dedicated
to bondholders and secured through statute, a beneficial credit
strength for bondholders.
PROFILE
Yachats Rural Fire Protection District is a full-service fire and
rescue agency in Lincoln County, Oregon serving a 15 square mile
service boundary including the City of Yachats and surrounding
rural areas. The district operates 3 fire stations staffed by a
volunteer Fire Chief, 6 full-time firefighters, two administrators
and 4 volunteers.
METHODOLOGY
The principal methodology used in this rating was US Local
Government General Obligation Debt published in January 2021.
YORKTOWN ELECTRIC: $1.8K Sale of 2002 & 2003 Ford Vans Approved
---------------------------------------------------------------
Judge Caryl E. Delano of the U.S. Bankruptcy Court for the Middle
District of Florida authorized Yorktown Electric Inc.'s sale of its
2002 Ford Van and 2003 Ford Van to Andrew for a lump sum payment of
$1,800.
A hearing on the Motion was held on Aug. 29, 2022.
The sale proceeds will be deposited into the Debtor's DIP bank
account.
The 14-day stay provided for under Bankruptcy Rule Section 6004 is
waived and the instant order is effective immediately upon entry.
About Yorktown Electric
Yorktown Electric Inc., doing business as Yorktown Electric, is an
electrical contractor for both residential and commercial
properties.
Yorktown Electric Inc. filed a petition for relief under
Subchapter
V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D, Fla. Case
No. 22-02329) on June 10, 2022. In the petition filed by Howard
K.
Orneck, as president, the Debtor estimated assets and liabilities
between $100,000 and $500,000 each.
Buddy D. Ford, of Buddy D. Ford, P.A., is the Debtor's counsel.
Kathleen L. DiSanto has been appointed as Subchapter V trustee.
YU HUA LONG: Unsecureds to Get 35 to 90 Cents on Dollar in Plan
---------------------------------------------------------------
Teng Huang, the assignee of the legal right and claims of Daniel
Chan and Tina Kwan, submitted a Modified Chapter 11 Plan of
Liquidation for Debtor Yu Hua Long Investments, LLC dated August
30, 2022.
As of April 30, 2022, the Trustee held $21,362,457 in this Chapter
11 Estate. The Debtor's business is no longer operating.
The final plan payment is expected to be on paid within two years
from the Effective Date of the Plan.
This Liquidating Plan proposes to pay claims against the Debtor
from cash on hand that the Chapter 11 Trustee holds as the result
of his sale of the Debtor's real property as the Chapter 11 Trustee
reported to the Court on or about January 17, 2018 to Rykadan 500,
LLC for the sum of $23,400,000.
Non-priority unsecured creditors holding allowed claims will
receive distributions which the proponent of this Plan has valued
at between approximately 35 to 90 cents on the dollar. This Plan
also provides for the payment of administrative and priority
claims; the Estate Representative will establish a reserve of
$2,500,000 for post-confirmation administration.
Class 2 consists of Allowed Non-priority unsecured claims. There
are two categories of similar claims based on Debtor's assumption
of debt from Magnus Sunhill Group, LLC, which are all treated as
Non Priority unsecured claims to be paid pro rata. The first
category consists of claims based on non-equity-based debt (Claim
Nos. 6, 8, 17, 24 and 27.) Teng purchased Claims 8 and 27 from
Daniel Chan and Tina Kwan, respectively, on or about August 15,
2022. The second category consists of claims based on Magnus
equity-based debt (Claim Nos. 10, 11, 12, 13, 14,15, 16 and 23).
For purposes of this Disclosure Statement and Plan, Teng employs
the dollar amounts in the Trustee's analysis proposed in the
Trustee's Comments Regarding Source of Proposed Claim Amounts.
Individual creditor's claims may be subject to further
reconciliation and adjustment. Each equity security holder (except
Teng) filed claims in the sum of $69,000,000 without consideration
of (1) each equity security holders' proportional interest in
Magnus; (2) Magnus' secured debt; or (3) Magnus' profit, if any.
Holders of Claims Nos. 10, 11, 12, 13, 14, 16 and 23 have not
disclosed to the court or to creditors their proportional interests
in Magnus.
Funds not paid to satisfy Class 2 will be distributed pursuant to
the Plan, regardless of whether the Estate Representative objects
or seeks to subordinate claims. No interest accruing from and after
the Petition Date shall be paid on Allowed Non-priority unsecured
claims absent the existence of Residual Funds, in which case
interest accruing from and after the Petition Date at the Federal
Judgment Rate shall be paid pro rata to the extent of available.
As of April 30, 2022, the Trustee held $21,362,452 in this Chapter
11 Estate. The Debtor's business is no longer operating. The Plan
shall be implemented in all respects in a manner that is consistent
with the requirements of Section 1123(a) and other applicable
provisions of the Bankruptcy Code.
A full-text copy of the Modified Liquidating Plan dated August 30,
2022, is available at https://bit.ly/3q8vGpq from PacerMonitor.com
at no charge.
Attorneys for Teng Huang:
THE FOX LAW CORPORATION, INC.
Steven R. Fox, SBN 138808
srfox@foxlaw.com
Janis G. Abrams, SBN 98331
jabrams@foxlaw.com
17835 Ventura Boulevard, Suite 306
Encino, California 91316
Tel: 818.774.3545; Fax: 818.774.3707
About Yu Hua Long Investments
Yu Hua Long Investments, LLC, is engaged in the development of real
property located in the City of Monterey Park, California.
Yu Hua Long Investments filed a Chapter 11 petition (Bankr. C.D.
Cal. Case No. 16-22745) on Sept. 26, 2016, estimating less than $1
million in both assets and liabilities.
Judge Deborah J. Saltzman presides over the case.
Timothy J. Yoo was appointed Chapter 11 trustee for the Debtor. The
Trustee hired Levene Neale Bender Yoo & Brill, LLP as bankruptcy
counsel; Re/Max Omega as broker; R.Y. Properties, Inc. as real
property consultant; and SLBiggs as accountant.
ZENTUARY GROUP: Wins Cash Collateral Access
-------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida, Tampa
Division, authorized Zentuary Group LLC to use cash collateral on
an interim basis in accordance with the budget.
The Debtor is permitted to use cash collateral to pay: (a) amounts
expressly authorized by the Court, including required payments to
the Subchapter V Trustee; (b) the current and Necessary expenses
set forth in the preliminary budget, plus an amount not to exceed
10% for each line item; and (c) such additional amounts as may
expressly approved in writing by the Secured Creditors.
Each creditor with a security interest in cash collateral will have
a perfected post-petition lien against cash collateral to the same
extent and with the same validity and priority as the prepetition
lien, without the need to file or execute any document as may
otherwise be required under applicable non bankruptcy law.
The Debtor will maintain insurance coverage for its real and
personal property in accordance with its obligations under any loan
and security documents with any secured creditors.
A continued hearing on the matter is scheduled for October 3, 2022
at 1:30 p.m.
A copy of the order and the Debtor's budget is available at
https://bit.ly/3BdCOY5 from PacerMonitor.com.
About Zentuary Group LLC
Zentuary Group LLC, doing business as Farmacy Vegan Kitchen, is a
quick service restaurant offering a well-rounded, 100% plant-based
menu.
Zentuary Group LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 22-02594) on June 28,
2022. In the petition filed by Charles Rumph, as president, the
Debtor estimated liabilities between $500,000 and $1 million
compared to estimated assets up to $50,000.
James W Elliott, Esq., at McIntyre Thanasides Bringgold Elliott, et
al, is the Debtor's counsel.
[^] Large Companies with Insolvent Balance Sheet
------------------------------------------------
Total
Share- Total
Total Holders' Working
Assets Equity Capital
Company Ticker ($MM) ($MM) ($MM)
------- ------ ------ -------- -------
7GC & CO HOLD-A VII US 230.8 219.4 -1.2
7GC & CO HOLDING VIIAU US 230.8 219.4 -1.2
ACCELERATE DIAGN AXDX* MM 58.7 -62.0 37.3
AEMETIS INC DW51 GR 178.5 -122.7 -45.3
AEMETIS INC AMTX US 178.5 -122.7 -45.3
AEMETIS INC AMTXGEUR EZ 178.5 -122.7 -45.3
AEMETIS INC AMTXGEUR EU 178.5 -122.7 -45.3
AEMETIS INC DW51 GZ 178.5 -122.7 -45.3
AEMETIS INC DW51 TH 178.5 -122.7 -45.3
AEMETIS INC DW51 QT 178.5 -122.7 -45.3
AERIE PHARMACEUT AERI US 385.3 -141.1 191.7
AERIE PHARMACEUT AERIEUR EU 385.3 -141.1 191.7
AERIE PHARMACEUT 0P0 GR 385.3 -141.1 191.7
AERIE PHARMACEUT 0P0 GZ 385.3 -141.1 191.7
AERIE PHARMACEUT 0P0 TH 385.3 -141.1 191.7
AERIE PHARMACEUT 0P0 QT 385.3 -141.1 191.7
AIR CANADA AC CN 30,364.0 -1,458.0 1,369.0
AIR CANADA ADH2 GR 30,364.0 -1,458.0 1,369.0
AIR CANADA ACEUR EU 30,364.0 -1,458.0 1,369.0
AIR CANADA ADH2 TH 30,364.0 -1,458.0 1,369.0
AIR CANADA ACDVF US 30,364.0 -1,458.0 1,369.0
AIR CANADA ACEUR EZ 30,364.0 -1,458.0 1,369.0
AIR CANADA ADH2 QT 30,364.0 -1,458.0 1,369.0
AIR CANADA ADH2 GZ 30,364.0 -1,458.0 1,369.0
ALPINE SUMMIT EN ALPS/U CN 247.4 -15.8 -165.4
ALPINE SUMMIT EN ASEPF US 247.4 -15.8 -165.4
ALTICE USA INC-A 15PA GZ 33,119.6 -474.6 -1,901.6
ALTICE USA INC-A ATUS* MM 33,119.6 -474.6 -1,901.6
ALTICE USA INC-A ATUS US 33,119.6 -474.6 -1,901.6
ALTICE USA INC-A 15PA GR 33,119.6 -474.6 -1,901.6
ALTICE USA INC-A 15PA TH 33,119.6 -474.6 -1,901.6
ALTICE USA INC-A ATUSEUR EU 33,119.6 -474.6 -1,901.6
ALTICE USA INC-A ATUS-RM RM 33,119.6 -474.6 -1,901.6
ALTIRA GP-CEDEAR MOC AR 36,746.0 -2,403.0 -4,225.0
ALTIRA GP-CEDEAR MOD AR 36,746.0 -2,403.0 -4,225.0
ALTIRA GP-CEDEAR MO AR 36,746.0 -2,403.0 -4,225.0
ALTRIA GROUP INC MOEUR EU 36,746.0 -2,403.0 -4,225.0
ALTRIA GROUP INC MO SW 36,746.0 -2,403.0 -4,225.0
ALTRIA GROUP INC MO US 36,746.0 -2,403.0 -4,225.0
ALTRIA GROUP INC PHM7 TH 36,746.0 -2,403.0 -4,225.0
ALTRIA GROUP INC MO TE 36,746.0 -2,403.0 -4,225.0
ALTRIA GROUP INC PHM7 GR 36,746.0 -2,403.0 -4,225.0
ALTRIA GROUP INC PHM7 QT 36,746.0 -2,403.0 -4,225.0
ALTRIA GROUP INC ALTR AV 36,746.0 -2,403.0 -4,225.0
ALTRIA GROUP INC MO CI 36,746.0 -2,403.0 -4,225.0
ALTRIA GROUP INC MO* MM 36,746.0 -2,403.0 -4,225.0
ALTRIA GROUP INC PHM7 GZ 36,746.0 -2,403.0 -4,225.0
ALTRIA GROUP INC 0R31 LI 36,746.0 -2,403.0 -4,225.0
ALTRIA GROUP INC MOEUR EZ 36,746.0 -2,403.0 -4,225.0
ALTRIA GROUP INC MOUSD SW 36,746.0 -2,403.0 -4,225.0
ALTRIA GROUP INC MO-RM RM 36,746.0 -2,403.0 -4,225.0
ALTRIA GROUP-BDR MOOO34 BZ 36,746.0 -2,403.0 -4,225.0
AMC ENTERTAINMEN AMC US 9,818.3 -2,326.8 -405.3
AMC ENTERTAINMEN AH9 GR 9,818.3 -2,326.8 -405.3
AMC ENTERTAINMEN AMC* MM 9,818.3 -2,326.8 -405.3
AMC ENTERTAINMEN AMC4EUR EU 9,818.3 -2,326.8 -405.3
AMC ENTERTAINMEN AH9 TH 9,818.3 -2,326.8 -405.3
AMC ENTERTAINMEN AH9 QT 9,818.3 -2,326.8 -405.3
AMC ENTERTAINMEN AH9 GZ 9,818.3 -2,326.8 -405.3
AMC ENTERTAINMEN AH9 SW 9,818.3 -2,326.8 -405.3
AMC ENTERTAINMEN AMC-RM RM 9,818.3 -2,326.8 -405.3
AMC ENTERTAINMEN A2MC34 BZ 9,818.3 -2,326.8 -405.3
AMC ENTERTAINMEN APE US 9,818.3 -2,326.8 -405.3
AMERICAN AIR-BDR AALL34 BZ 67,963.0 -8,422.0 -4,245.0
AMERICAN AIRLINE A1G QT 67,963.0 -8,422.0 -4,245.0
AMERICAN AIRLINE AAL US 67,963.0 -8,422.0 -4,245.0
AMERICAN AIRLINE A1G GR 67,963.0 -8,422.0 -4,245.0
AMERICAN AIRLINE AAL* MM 67,963.0 -8,422.0 -4,245.0
AMERICAN AIRLINE A1G TH 67,963.0 -8,422.0 -4,245.0
AMERICAN AIRLINE AAL11EUR EU 67,963.0 -8,422.0 -4,245.0
AMERICAN AIRLINE AAL AV 67,963.0 -8,422.0 -4,245.0
AMERICAN AIRLINE AAL TE 67,963.0 -8,422.0 -4,245.0
AMERICAN AIRLINE A1G SW 67,963.0 -8,422.0 -4,245.0
AMERICAN AIRLINE 0HE6 LI 67,963.0 -8,422.0 -4,245.0
AMERICAN AIRLINE AAL11EUR EZ 67,963.0 -8,422.0 -4,245.0
AMERICAN AIRLINE A1G GZ 67,963.0 -8,422.0 -4,245.0
AMERICAN AIRLINE AAL-RM RM 67,963.0 -8,422.0 -4,245.0
AMERICAN AIRLINE AAL_KZ KZ 67,963.0 -8,422.0 -4,245.0
AMERICAN RESOURC AREC US 37.7 -4.7 0.1
AMPLIFY ENERGY C 2OQ TH 456.5 -83.4 -78.1
AMPLIFY ENERGY C MPO2EUR EU 456.5 -83.4 -78.1
AMPLIFY ENERGY C AMPY US 456.5 -83.4 -78.1
AMPLIFY ENERGY C 2OQ GR 456.5 -83.4 -78.1
AMPLIFY ENERGY C 2OQ GZ 456.5 -83.4 -78.1
AMPLIFY ENERGY C 2OQ QT 456.5 -83.4 -78.1
AMYRIS INC AMRS* MM 789.4 -243.6 123.0
AMYRIS INC A2MR34 BZ 789.4 -243.6 123.0
ARCH BIOPARTNERS ARCH CN 1.8 -4.0 -0.6
ARENA GROUP HOLD AREN US 186.4 -20.6 -34.2
ASCENT SOLAR TEC ASTI US 8.8 -0.3 -1.1
ASCENT SOLAR TEC A8M GR 8.8 -0.3 -1.1
ASHFORD HOSPITAL AHT US 4,030.2 -44.4 0.0
ASHFORD HOSPITAL AHD GR 4,030.2 -44.4 0.0
ASHFORD HOSPITAL AHT1EUR EU 4,030.2 -44.4 0.0
ASHFORD HOSPITAL AHD TH 4,030.2 -44.4 0.0
ATLAS TECHNICAL ATCX US 523.1 -138.4 80.2
AUTOZONE INC AZ5 GR 14,520.6 -3,387.2 -1,809.4
AUTOZONE INC AZ5 TH 14,520.6 -3,387.2 -1,809.4
AUTOZONE INC AZO US 14,520.6 -3,387.2 -1,809.4
AUTOZONE INC AZOEUR EU 14,520.6 -3,387.2 -1,809.4
AUTOZONE INC AZ5 QT 14,520.6 -3,387.2 -1,809.4
AUTOZONE INC AZOEUR EZ 14,520.6 -3,387.2 -1,809.4
AUTOZONE INC AZ5 GZ 14,520.6 -3,387.2 -1,809.4
AUTOZONE INC AZO AV 14,520.6 -3,387.2 -1,809.4
AUTOZONE INC AZ5 TE 14,520.6 -3,387.2 -1,809.4
AUTOZONE INC AZO* MM 14,520.6 -3,387.2 -1,809.4
AUTOZONE INC AZO-RM RM 14,520.6 -3,387.2 -1,809.4
AUTOZONE INC-BDR AZOI34 BZ 14,520.6 -3,387.2 -1,809.4
AVID TECHNOLOGY AVID US 247.1 -136.4 -14.9
AVID TECHNOLOGY AVD GR 247.1 -136.4 -14.9
AVID TECHNOLOGY AVD TH 247.1 -136.4 -14.9
AVID TECHNOLOGY AVD GZ 247.1 -136.4 -14.9
AVIS BUD-CEDEAR CAR AR 26,095.0 -649.0 -706.0
AVIS BUDGET GROU CUCA GR 26,095.0 -649.0 -706.0
AVIS BUDGET GROU CAR US 26,095.0 -649.0 -706.0
AVIS BUDGET GROU CAR2EUR EU 26,095.0 -649.0 -706.0
AVIS BUDGET GROU CUCA QT 26,095.0 -649.0 -706.0
AVIS BUDGET GROU CAR2EUR EZ 26,095.0 -649.0 -706.0
AVIS BUDGET GROU CUCA TH 26,095.0 -649.0 -706.0
AVIS BUDGET GROU CAR* MM 26,095.0 -649.0 -706.0
AVIS BUDGET GROU CUCA GZ 26,095.0 -649.0 -706.0
BATH & BODY WORK BBWI US 4,901.0 -2,662.0 496.0
BATH & BODY WORK LTD0 TH 4,901.0 -2,662.0 496.0
BATH & BODY WORK LBEUR EU 4,901.0 -2,662.0 496.0
BATH & BODY WORK LTD0 GR 4,901.0 -2,662.0 496.0
BATH & BODY WORK LBEUR EZ 4,901.0 -2,662.0 496.0
BATH & BODY WORK BBWI AV 4,901.0 -2,662.0 496.0
BATH & BODY WORK BBWI* MM 4,901.0 -2,662.0 496.0
BATH & BODY WORK LTD0 QT 4,901.0 -2,662.0 496.0
BATH & BODY WORK LTD0 GZ 4,901.0 -2,662.0 496.0
BATH & BODY WORK BBWI-RM RM 4,901.0 -2,662.0 496.0
BATTALION OIL CO BATL US 449.2 -15.4 -101.0
BATTALION OIL CO RAQB GR 449.2 -15.4 -101.0
BATTALION OIL CO BATLEUR EU 449.2 -15.4 -101.0
BATTERY FUTURE A BFAC/U US 353.5 346.7 0.3
BATTERY FUTURE-A BFAC US 353.5 346.7 0.3
BED BATH &BEYOND BBBY* MM 4,949.1 -220.3 30.9
BED BATH &BEYOND BBY TH 4,949.1 -220.3 30.9
BED BATH &BEYOND BBBY SW 4,949.1 -220.3 30.9
BED BATH &BEYOND BBBY US 4,949.1 -220.3 30.9
BED BATH &BEYOND BBY GR 4,949.1 -220.3 30.9
BED BATH &BEYOND BBY GZ 4,949.1 -220.3 30.9
BED BATH &BEYOND BBBYEUR EZ 4,949.1 -220.3 30.9
BED BATH &BEYOND BBY QT 4,949.1 -220.3 30.9
BED BATH &BEYOND BBBYEUR EU 4,949.1 -220.3 30.9
BED BATH &BEYOND BBBY-RM RM 4,949.1 -220.3 30.9
BELLRING BRANDS BRBR US 715.1 -389.6 246.1
BELLRING BRANDS D51 TH 715.1 -389.6 246.1
BELLRING BRANDS BRBR2EUR EU 715.1 -389.6 246.1
BELLRING BRANDS D51 GR 715.1 -389.6 246.1
BELLRING BRANDS D51 QT 715.1 -389.6 246.1
BENEFITFOCUS INC BNFT US 245.0 -20.6 38.8
BENEFITFOCUS INC BTF GR 245.0 -20.6 38.8
BENEFITFOCUS INC BNFTEUR EU 245.0 -20.6 38.8
BEYOND MEAT INC BYND US 1,218.1 -47.9 710.0
BEYOND MEAT INC 0Q3 TE 1,218.1 -47.9 710.0
BEYOND MEAT INC BYND* MM 1,218.1 -47.9 710.0
BEYOND MEAT INC 0Q3 GR 1,218.1 -47.9 710.0
BEYOND MEAT INC 0Q3 TH 1,218.1 -47.9 710.0
BEYOND MEAT INC BYNDEUR EU 1,218.1 -47.9 710.0
BEYOND MEAT INC 0Q3 GZ 1,218.1 -47.9 710.0
BEYOND MEAT INC 0Q3 QT 1,218.1 -47.9 710.0
BEYOND MEAT INC BYND AV 1,218.1 -47.9 710.0
BEYOND MEAT INC 0Q3 SW 1,218.1 -47.9 710.0
BEYOND MEAT INC 0A20 LI 1,218.1 -47.9 710.0
BEYOND MEAT INC BYNDEUR EZ 1,218.1 -47.9 710.0
BEYOND MEAT INC B2YN34 BZ 1,218.1 -47.9 710.0
BEYOND MEAT INC BYND-RM RM 1,218.1 -47.9 710.0
BGP ACQUISITI-A BGPPF US 148.4 -6.8 -155.0
BIOCRYST PHARM BCRX US 510.5 -213.2 399.5
BIOCRYST PHARM BO1 GR 510.5 -213.2 399.5
BIOCRYST PHARM BO1 TH 510.5 -213.2 399.5
BIOCRYST PHARM BCRXEUR EZ 510.5 -213.2 399.5
BIOCRYST PHARM BCRX* MM 510.5 -213.2 399.5
BIOCRYST PHARM BO1 QT 510.5 -213.2 399.5
BIOCRYST PHARM BCRXEUR EU 510.5 -213.2 399.5
BIOHAVEN PHARMAC BHVN US 1,386.2 -805.6 502.4
BIOHAVEN PHARMAC 2VN GR 1,386.2 -805.6 502.4
BIOHAVEN PHARMAC BHVNEUR EU 1,386.2 -805.6 502.4
BIOHAVEN PHARMAC 2VN TH 1,386.2 -805.6 502.4
BIOTE CORP-A BTMD US 115.3 -103.5 73.4
BOEING CO-BDR BOEI34 BZ 135,479.0 -14,791.0 21,201.0
BOEING CO-CED BA AR 135,479.0 -14,791.0 21,201.0
BOEING CO-CED BAD AR 135,479.0 -14,791.0 21,201.0
BOEING CO/THE BCO GR 135,479.0 -14,791.0 21,201.0
BOEING CO/THE BAEUR EU 135,479.0 -14,791.0 21,201.0
BOEING CO/THE BA EU 135,479.0 -14,791.0 21,201.0
BOEING CO/THE BOE LN 135,479.0 -14,791.0 21,201.0
BOEING CO/THE BA PE 135,479.0 -14,791.0 21,201.0
BOEING CO/THE BOEI BB 135,479.0 -14,791.0 21,201.0
BOEING CO/THE BA US 135,479.0 -14,791.0 21,201.0
BOEING CO/THE BCO TH 135,479.0 -14,791.0 21,201.0
BOEING CO/THE BA SW 135,479.0 -14,791.0 21,201.0
BOEING CO/THE BA* MM 135,479.0 -14,791.0 21,201.0
BOEING CO/THE BA TE 135,479.0 -14,791.0 21,201.0
BOEING CO/THE BCO QT 135,479.0 -14,791.0 21,201.0
BOEING CO/THE BA-RM RM 135,479.0 -14,791.0 21,201.0
BOEING CO/THE BA CI 135,479.0 -14,791.0 21,201.0
BOEING CO/THE BA AV 135,479.0 -14,791.0 21,201.0
BOEING CO/THE BAEUR EZ 135,479.0 -14,791.0 21,201.0
BOEING CO/THE BA EZ 135,479.0 -14,791.0 21,201.0
BOEING CO/THE BAUSD SW 135,479.0 -14,791.0 21,201.0
BOEING CO/THE BCO GZ 135,479.0 -14,791.0 21,201.0
BOEING CO/THE BACL CI 135,479.0 -14,791.0 21,201.0
BOEING CO/THE BA_KZ KZ 135,479.0 -14,791.0 21,201.0
BOMBARDIER INC-A BDRAF US 12,310.0 -3,157.0 477.0
BOMBARDIER INC-A BBD/A CN 12,310.0 -3,157.0 477.0
BOMBARDIER INC-A BBD GR 12,310.0 -3,157.0 477.0
BOMBARDIER INC-A BBD/AEUR EU 12,310.0 -3,157.0 477.0
BOMBARDIER INC-A BBD GZ 12,310.0 -3,157.0 477.0
BOMBARDIER INC-B BDRBF US 12,310.0 -3,157.0 477.0
BOMBARDIER INC-B BBDC TH 12,310.0 -3,157.0 477.0
BOMBARDIER INC-B BBD/B CN 12,310.0 -3,157.0 477.0
BOMBARDIER INC-B BBDBN MM 12,310.0 -3,157.0 477.0
BOMBARDIER INC-B BBDC GR 12,310.0 -3,157.0 477.0
BOMBARDIER INC-B BBD/BEUR EZ 12,310.0 -3,157.0 477.0
BOMBARDIER INC-B BBDC GZ 12,310.0 -3,157.0 477.0
BOMBARDIER INC-B BBD/BEUR EU 12,310.0 -3,157.0 477.0
BOMBARDIER INC-B BBDC QT 12,310.0 -3,157.0 477.0
BOX INC- CLASS A 3BX GR 1,066.3 -90.6 17.3
BOX INC- CLASS A BOX US 1,066.3 -90.6 17.3
BOX INC- CLASS A BOXEUR EZ 1,066.3 -90.6 17.3
BOX INC- CLASS A 3BX GZ 1,066.3 -90.6 17.3
BOX INC- CLASS A 3BX TH 1,066.3 -90.6 17.3
BOX INC- CLASS A BOXEUR EU 1,066.3 -90.6 17.3
BOX INC- CLASS A 3BX QT 1,066.3 -90.6 17.3
BOX INC- CLASS A BOX-RM RM 1,066.3 -90.6 17.3
BRIDGEBIO PHARMA BBIOEUR EU 862.2 -1,015.0 630.1
BRIDGEBIO PHARMA 2CL GZ 862.2 -1,015.0 630.1
BRIDGEBIO PHARMA 2CL TH 862.2 -1,015.0 630.1
BRIDGEBIO PHARMA BBIO US 862.2 -1,015.0 630.1
BRIDGEBIO PHARMA 2CL GR 862.2 -1,015.0 630.1
BRIGHTSPHERE INV 2B9 GR 478.3 -71.0 0.0
BRIGHTSPHERE INV BSIGEUR EU 478.3 -71.0 0.0
BRIGHTSPHERE INV BSIG US 478.3 -71.0 0.0
BRINKER INTL EAT US 2,484.4 -268.1 -356.8
BRINKER INTL BKJ GR 2,484.4 -268.1 -356.8
BRINKER INTL BKJ TH 2,484.4 -268.1 -356.8
BRINKER INTL EAT2EUR EZ 2,484.4 -268.1 -356.8
BRINKER INTL BKJ QT 2,484.4 -268.1 -356.8
BRINKER INTL EAT2EUR EU 2,484.4 -268.1 -356.8
BROOKFIELD INF-A BIPC US 10,086.0 -1,424.0 -4,187.0
BROOKFIELD INF-A BIPC CN 10,086.0 -1,424.0 -4,187.0
BRP INC/CA-SUB V B15A GR 5,210.7 -212.0 -168.7
BRP INC/CA-SUB V DOOO US 5,210.7 -212.0 -168.7
BRP INC/CA-SUB V DOO CN 5,210.7 -212.0 -168.7
BRP INC/CA-SUB V DOOEUR EU 5,210.7 -212.0 -168.7
BRP INC/CA-SUB V B15A GZ 5,210.7 -212.0 -168.7
BRP INC/CA-SUB V B15A TH 5,210.7 -212.0 -168.7
CALUMET SPECIALT CLMT US 2,353.7 -477.6 -523.6
CARDINAL HEA BDR C1AH34 BZ 43,878.0 -706.0 2,385.0
CARDINAL HEALTH CLH TH 43,878.0 -706.0 2,385.0
CARDINAL HEALTH CAH US 43,878.0 -706.0 2,385.0
CARDINAL HEALTH CLH GR 43,878.0 -706.0 2,385.0
CARDINAL HEALTH CAH* MM 43,878.0 -706.0 2,385.0
CARDINAL HEALTH CAHEUR EZ 43,878.0 -706.0 2,385.0
CARDINAL HEALTH CLH GZ 43,878.0 -706.0 2,385.0
CARDINAL HEALTH CLH QT 43,878.0 -706.0 2,385.0
CARDINAL HEALTH CAHEUR EU 43,878.0 -706.0 2,385.0
CARDINAL HEALTH CAH-RM RM 43,878.0 -706.0 2,385.0
CARDINAL-CEDEAR CAH AR 43,878.0 -706.0 2,385.0
CARDINAL-CEDEAR CAHD AR 43,878.0 -706.0 2,385.0
CARDINAL-CEDEAR CAHC AR 43,878.0 -706.0 2,385.0
CEDAR FAIR LP FUN US 2,417.0 -725.8 -33.0
CENTRUS ENERGY-A 4CU GR 528.7 -94.9 122.9
CENTRUS ENERGY-A 4CU TH 528.7 -94.9 122.9
CENTRUS ENERGY-A LEU US 528.7 -94.9 122.9
CENTRUS ENERGY-A LEUEUR EU 528.7 -94.9 122.9
CENTRUS ENERGY-A 4CU GZ 528.7 -94.9 122.9
CF ACQUISITION-A CFVI US 300.9 281.8 -3.7
CF ACQUISITON VI CFVIU US 300.9 281.8 -3.7
CHENIERE ENERGY CQP US 20,130.0 -2,625.0 -819.0
CHENIERE ENERGY CHQ1 TH 41,313.0 -1,195.0 -1,370.0
CHENIERE ENERGY LNG US 41,313.0 -1,195.0 -1,370.0
CHENIERE ENERGY CHQ1 GR 41,313.0 -1,195.0 -1,370.0
CHENIERE ENERGY CHQ1 SW 41,313.0 -1,195.0 -1,370.0
CHENIERE ENERGY LNG* MM 41,313.0 -1,195.0 -1,370.0
CHENIERE ENERGY LNG2EUR EZ 41,313.0 -1,195.0 -1,370.0
CHENIERE ENERGY CHQ1 QT 41,313.0 -1,195.0 -1,370.0
CHENIERE ENERGY LNG2EUR EU 41,313.0 -1,195.0 -1,370.0
CHENIERE ENERGY CHQ1 GZ 41,313.0 -1,195.0 -1,370.0
CINEPLEX INC CPXGF US 2,036.3 -256.3 -380.8
CINEPLEX INC CX0 GR 2,036.3 -256.3 -380.8
CINEPLEX INC CGX CN 2,036.3 -256.3 -380.8
CINEPLEX INC CX0 TH 2,036.3 -256.3 -380.8
CINEPLEX INC CGXEUR EU 2,036.3 -256.3 -380.8
CINEPLEX INC CGXN MM 2,036.3 -256.3 -380.8
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CLOVIS ONCOLOGY C6O SW 392.9 -367.7 21.0
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CPI CARD GROUP I PMTSEUR EU 289.7 -107.0 99.4
CPI CARD GROUP I PMTS US 289.7 -107.0 99.4
CPI CARD GROUP I CPB1 GR 289.7 -107.0 99.4
CTI BIOPHARMA CO CTIC US 134.5 -5.3 77.6
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DENNY'S CORP DENNEUR EU 392.8 -58.7 -40.9
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DOLLARAMA INC DOL CN 4,194.3 -17.1 -192.1
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DROPBOX INC-A DBX US 2,758.8 -542.9 457.4
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DROPBOX INC-A 1Q5 TH 2,758.8 -542.9 457.4
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EMBECTA CORP EMBC US 1,049.8 -847.6 352.1
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FERRELLGAS PAR-B FGPRB US 1,772.5 -112.3 328.2
FERRELLGAS-LP FGPR US 1,772.5 -112.3 328.2
FLUENCE ENERGY I FLNC US 1,672.6 671.1 556.7
FOREST ROAD AC-A FRXB US 350.8 -18.9 0.2
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FORTINET INC FO8 GR 5,294.5 -379.6 318.0
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FORTINET INC FTNT US 5,294.5 -379.6 318.0
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GCM GROSVENOR-A GCMG US 507.8 -45.0 119.3
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GOOSEHEAD INSU-A GSHD US 291.3 -58.7 24.9
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GOSSAMER BIO INC 4GB QT 245.8 -16.5 188.3
GROVE COLLABORAT GROV US 230.0 -8.5 94.9
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IMPINJ INC PIEUR EU 304.4 -11.3 213.7
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INSEEGO CORP INSG-RM RM 191.3 -43.7 34.3
INSPIRED ENTERTA INSE US 300.3 -57.1 48.8
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J. JILL INC JILL US 460.3 -11.8 22.8
J. JILL INC 1MJ1 GR 460.3 -11.8 22.8
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J. JILL INC 1MJ1 GZ 460.3 -11.8 22.8
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KARYOPHARM THERA KPTI US 256.5 -116.3 179.9
KARYOPHARM THERA KPTIEUR EU 256.5 -116.3 179.9
KARYOPHARM THERA 25K TH 256.5 -116.3 179.9
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KWIKCLICK INC KWIK US 5.2 -0.1 -0.3
L BRANDS INC-BDR B1BW34 BZ 4,901.0 -2,662.0 496.0
LA JOLLA PHARM LJPC US 99.4 -69.5 49.9
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LATAMGROWTH SPAC LATGU US 134.5 128.0 1.5
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LENNOX INTL INC LII US 2,659.0 -401.3 661.4
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LESLIE'S INC LESL US 1,117.0 -258.8 199.4
LESLIE'S INC LE3 GR 1,117.0 -258.8 199.4
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LINDBLAD EXPEDIT LIND US 849.3 -51.2 -123.9
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MADISON SQUARE G MS8 QT 1,302.0 -145.4 -233.0
MADISON SQUARE G MS8 GZ 1,302.0 -145.4 -233.0
MANNKIND CORP NNFN TH 285.8 -247.1 133.9
MANNKIND CORP MNKD US 285.8 -247.1 133.9
MANNKIND CORP NNFN GR 285.8 -247.1 133.9
MANNKIND CORP MNKDEUR EZ 285.8 -247.1 133.9
MANNKIND CORP NNFN QT 285.8 -247.1 133.9
MANNKIND CORP MNKDEUR EU 285.8 -247.1 133.9
MANNKIND CORP NNFN GZ 285.8 -247.1 133.9
MARKETWISE INC MKTW* MM 426.6 -359.6 -124.1
MARTIN MIDSTREAM MMLP US 636.2 -30.9 89.6
MASCO CORP MSQ TH 5,467.0 -541.0 892.0
MASCO CORP MAS US 5,467.0 -541.0 892.0
MASCO CORP MSQ GR 5,467.0 -541.0 892.0
MASCO CORP MAS* MM 5,467.0 -541.0 892.0
MASCO CORP MAS1EUR EZ 5,467.0 -541.0 892.0
MASCO CORP MSQ GZ 5,467.0 -541.0 892.0
MASCO CORP MSQ QT 5,467.0 -541.0 892.0
MASCO CORP MAS1EUR EU 5,467.0 -541.0 892.0
MASCO CORP MAS-RM RM 5,467.0 -541.0 892.0
MASCO CORP-BDR M1AS34 BZ 5,467.0 -541.0 892.0
MASON INDUS-CL A MIT US 501.4 -20.7 0.1
MASON INDUSTRIAL MIT/U US 501.4 -20.7 0.1
MATCH GROUP -BDR M1TC34 BZ 4,193.8 -452.1 177.1
MATCH GROUP INC MTCH US 4,193.8 -452.1 177.1
MATCH GROUP INC MTCH1* MM 4,193.8 -452.1 177.1
MATCH GROUP INC 4MGN TH 4,193.8 -452.1 177.1
MATCH GROUP INC 4MGN QT 4,193.8 -452.1 177.1
MATCH GROUP INC 4MGN GR 4,193.8 -452.1 177.1
MATCH GROUP INC 4MGN SW 4,193.8 -452.1 177.1
MATCH GROUP INC MTC2 AV 4,193.8 -452.1 177.1
MATCH GROUP INC 4MGN GZ 4,193.8 -452.1 177.1
MATCH GROUP INC 0JZ7 LI 4,193.8 -452.1 177.1
MATCH GROUP INC MTCH-RM RM 4,193.8 -452.1 177.1
MBIA INC MBI US 4,067.0 -735.0 0.0
MBIA INC MBJ GR 4,067.0 -735.0 0.0
MBIA INC MBJ QT 4,067.0 -735.0 0.0
MBIA INC MBI1EUR EU 4,067.0 -735.0 0.0
MBIA INC MBJ GZ 4,067.0 -735.0 0.0
MCDONALD'S - CDR MCDS CN 49,247.8 -6,369.8 1,439.2
MCDONALD'S - CDR MDO0 GR 49,247.8 -6,369.8 1,439.2
MCDONALDS - BDR MCDC34 BZ 49,247.8 -6,369.8 1,439.2
MCDONALDS CORP MDO TH 49,247.8 -6,369.8 1,439.2
MCDONALDS CORP MCD US 49,247.8 -6,369.8 1,439.2
MCDONALDS CORP MCD SW 49,247.8 -6,369.8 1,439.2
MCDONALDS CORP MDO GR 49,247.8 -6,369.8 1,439.2
MCDONALDS CORP MCD* MM 49,247.8 -6,369.8 1,439.2
MCDONALDS CORP MCD TE 49,247.8 -6,369.8 1,439.2
MCDONALDS CORP MDO QT 49,247.8 -6,369.8 1,439.2
MCDONALDS CORP MCD CI 49,247.8 -6,369.8 1,439.2
MCDONALDS CORP MCDEUR EU 49,247.8 -6,369.8 1,439.2
MCDONALDS CORP MDO GZ 49,247.8 -6,369.8 1,439.2
MCDONALDS CORP MCD AV 49,247.8 -6,369.8 1,439.2
MCDONALDS CORP MCDEUR EZ 49,247.8 -6,369.8 1,439.2
MCDONALDS CORP 0R16 LN 49,247.8 -6,369.8 1,439.2
MCDONALDS CORP MCDUSD SW 49,247.8 -6,369.8 1,439.2
MCDONALDS CORP MCD-RM RM 49,247.8 -6,369.8 1,439.2
MCDONALDS CORP MCDCL CI 49,247.8 -6,369.8 1,439.2
MCDONALDS-CEDEAR MCD AR 49,247.8 -6,369.8 1,439.2
MCDONALDS-CEDEAR MCDC AR 49,247.8 -6,369.8 1,439.2
MCDONALDS-CEDEAR MCDD AR 49,247.8 -6,369.8 1,439.2
MCKESSON CORP MCK* MM 62,295.0 -1,472.0 -1,818.0
MCKESSON CORP MCK TH 62,295.0 -1,472.0 -1,818.0
MCKESSON CORP MCK1EUR EU 62,295.0 -1,472.0 -1,818.0
MCKESSON CORP MCK QT 62,295.0 -1,472.0 -1,818.0
MCKESSON CORP MCK GR 62,295.0 -1,472.0 -1,818.0
MCKESSON CORP MCK US 62,295.0 -1,472.0 -1,818.0
MCKESSON CORP MCK GZ 62,295.0 -1,472.0 -1,818.0
MCKESSON CORP MCK1EUR EZ 62,295.0 -1,472.0 -1,818.0
MCKESSON CORP MCK-RM RM 62,295.0 -1,472.0 -1,818.0
MCKESSON-BDR M1CK34 BZ 62,295.0 -1,472.0 -1,818.0
MEDIAALPHA INC-A MAX US 285.9 -59.5 25.0
MICROSTRATEG-BDR M2ST34 BZ 2,568.4 -187.1 -54.4
MICROSTRATEGY MSTR US 2,568.4 -187.1 -54.4
MICROSTRATEGY MIGA GR 2,568.4 -187.1 -54.4
MICROSTRATEGY MIGA SW 2,568.4 -187.1 -54.4
MICROSTRATEGY MSTREUR EU 2,568.4 -187.1 -54.4
MICROSTRATEGY MIGA TH 2,568.4 -187.1 -54.4
MICROSTRATEGY MIGA QT 2,568.4 -187.1 -54.4
MICROSTRATEGY MSTREUR EZ 2,568.4 -187.1 -54.4
MICROSTRATEGY MSTR* MM 2,568.4 -187.1 -54.4
MICROSTRATEGY MIGA GZ 2,568.4 -187.1 -54.4
MICROSTRATEGY MSTR-RM RM 2,568.4 -187.1 -54.4
MICROSTRATEGY MSTR AR 2,568.4 -187.1 -54.4
MONEYGRAM INTERN 9M1N GR 4,504.7 -184.9 -16.6
MONEYGRAM INTERN 9M1N QT 4,504.7 -184.9 -16.6
MONEYGRAM INTERN MGI US 4,504.7 -184.9 -16.6
MONEYGRAM INTERN 9M1N TH 4,504.7 -184.9 -16.6
MONEYGRAM INTERN MGIEUR EU 4,504.7 -184.9 -16.6
MONEYGRAM INTERN MGIEUR EZ 4,504.7 -184.9 -16.6
MOTOROLA SOL-BDR M1SI34 BZ 11,672.0 -430.0 610.0
MOTOROLA SOL-CED MSI AR 11,672.0 -430.0 610.0
MOTOROLA SOLUTIO MTLA GR 11,672.0 -430.0 610.0
MOTOROLA SOLUTIO MOT TE 11,672.0 -430.0 610.0
MOTOROLA SOLUTIO MSI US 11,672.0 -430.0 610.0
MOTOROLA SOLUTIO MTLA TH 11,672.0 -430.0 610.0
MOTOROLA SOLUTIO MTLA QT 11,672.0 -430.0 610.0
MOTOROLA SOLUTIO MSI1EUR EU 11,672.0 -430.0 610.0
MOTOROLA SOLUTIO MTLA GZ 11,672.0 -430.0 610.0
MOTOROLA SOLUTIO MSI1EUR EZ 11,672.0 -430.0 610.0
MOTOROLA SOLUTIO MOSI AV 11,672.0 -430.0 610.0
MOTOROLA SOLUTIO MSI-RM RM 11,672.0 -430.0 610.0
MSCI INC 3HM GR 4,833.4 -1,026.4 368.8
MSCI INC MSCI US 4,833.4 -1,026.4 368.8
MSCI INC 3HM SW 4,833.4 -1,026.4 368.8
MSCI INC 3HM GZ 4,833.4 -1,026.4 368.8
MSCI INC 3HM QT 4,833.4 -1,026.4 368.8
MSCI INC MSCIEUR EZ 4,833.4 -1,026.4 368.8
MSCI INC MSCI* MM 4,833.4 -1,026.4 368.8
MSCI INC 3HM TH 4,833.4 -1,026.4 368.8
MSCI INC MSCI AV 4,833.4 -1,026.4 368.8
MSCI INC MSCI-RM RM 4,833.4 -1,026.4 368.8
MSCI INC-BDR M1SC34 BZ 4,833.4 -1,026.4 368.8
N/A TCDAEUR EU 114.3 -111.2 82.3
N/A CTIC1EUR EU 134.5 -5.3 77.6
N/A CC-RM RM 2,884.1 -229.0 259.8
NATHANS FAMOUS NATH US 83.5 -50.8 53.2
NATHANS FAMOUS NFA GR 83.5 -50.8 53.2
NATHANS FAMOUS NATHEUR EU 83.5 -50.8 53.2
NEW ENG RLTY-LP NEN US 389.9 -59.4 0.0
NORTONLIFEL- BDR S1YM34 BZ 6,247.0 -299.0 -995.0
NORTONLIFELOCK I SYM TH 6,247.0 -299.0 -995.0
NORTONLIFELOCK I SYM GR 6,247.0 -299.0 -995.0
NORTONLIFELOCK I SYMC TE 6,247.0 -299.0 -995.0
NORTONLIFELOCK I NLOK US 6,247.0 -299.0 -995.0
NORTONLIFELOCK I SYM QT 6,247.0 -299.0 -995.0
NORTONLIFELOCK I SYMCEUR EU 6,247.0 -299.0 -995.0
NORTONLIFELOCK I SYM GZ 6,247.0 -299.0 -995.0
NORTONLIFELOCK I SYMC AV 6,247.0 -299.0 -995.0
NORTONLIFELOCK I SYMCEUR EZ 6,247.0 -299.0 -995.0
NORTONLIFELOCK I NLOK* MM 6,247.0 -299.0 -995.0
NORTONLIFELOCK I NLOK-RM RM 6,247.0 -299.0 -995.0
NOVAVAX INC NVV1 TH 2,623.0 -417.0 -20.2
NOVAVAX INC NVV1 GR 2,623.0 -417.0 -20.2
NOVAVAX INC NVAX US 2,623.0 -417.0 -20.2
NOVAVAX INC NVAX* MM 2,623.0 -417.0 -20.2
NOVAVAX INC NVV1 SW 2,623.0 -417.0 -20.2
NOVAVAX INC NVV1 GZ 2,623.0 -417.0 -20.2
NOVAVAX INC NVAXEUR EU 2,623.0 -417.0 -20.2
NOVAVAX INC NVV1 QT 2,623.0 -417.0 -20.2
NOVAVAX INC 0A3S LI 2,623.0 -417.0 -20.2
NUTANIX INC - A 0NU SW 2,365.7 -790.2 507.8
NUTANIX INC - A 0NU GZ 2,365.7 -790.2 507.8
NUTANIX INC - A NTNXEUR EZ 2,365.7 -790.2 507.8
NUTANIX INC - A 0NU GR 2,365.7 -790.2 507.8
NUTANIX INC - A NTNXEUR EU 2,365.7 -790.2 507.8
NUTANIX INC - A 0NU TH 2,365.7 -790.2 507.8
NUTANIX INC - A 0NU QT 2,365.7 -790.2 507.8
NUTANIX INC - A NTNX US 2,365.7 -790.2 507.8
NUTANIX INC - A NTNX-RM RM 2,365.7 -790.2 507.8
NUTANIX INC-BDR N2TN34 BZ 2,365.7 -790.2 507.8
O'REILLY AUT-BDR ORLY34 BZ 12,067.7 -1,107.4 -1,613.3
O'REILLY AUTOMOT OM6 TH 12,067.7 -1,107.4 -1,613.3
O'REILLY AUTOMOT OM6 QT 12,067.7 -1,107.4 -1,613.3
O'REILLY AUTOMOT OM6 GR 12,067.7 -1,107.4 -1,613.3
O'REILLY AUTOMOT ORLY US 12,067.7 -1,107.4 -1,613.3
O'REILLY AUTOMOT ORLYEUR EU 12,067.7 -1,107.4 -1,613.3
O'REILLY AUTOMOT OM6 GZ 12,067.7 -1,107.4 -1,613.3
O'REILLY AUTOMOT ORLY AV 12,067.7 -1,107.4 -1,613.3
O'REILLY AUTOMOT ORLYEUR EZ 12,067.7 -1,107.4 -1,613.3
O'REILLY AUTOMOT ORLY* MM 12,067.7 -1,107.4 -1,613.3
O'REILLY AUTOMOT ORLY-RM RM 12,067.7 -1,107.4 -1,613.3
OAK STREET HEALT OSH US 2,063.2 -101.9 507.9
OAK STREET HEALT HE6 GZ 2,063.2 -101.9 507.9
OAK STREET HEALT HE6 TH 2,063.2 -101.9 507.9
OAK STREET HEALT OSH3EUR EU 2,063.2 -101.9 507.9
OAK STREET HEALT HE6 GR 2,063.2 -101.9 507.9
OAK STREET HEALT HE6 QT 2,063.2 -101.9 507.9
OMEROS CORP OMER US 345.6 -32.7 154.2
OMEROS CORP 3O8 GR 345.6 -32.7 154.2
OMEROS CORP 3O8 QT 345.6 -32.7 154.2
OMEROS CORP 3O8 TH 345.6 -32.7 154.2
OMEROS CORP OMEREUR EU 345.6 -32.7 154.2
OMEROS CORP 3O8 GZ 345.6 -32.7 154.2
OPTINOSE INC OPTN US 122.8 -60.8 63.0
OPTINOSE INC 0OP GR 122.8 -60.8 63.0
OPTINOSE INC OPTNEUR EU 122.8 -60.8 63.0
OPTINOSE INC 0OP GZ 122.8 -60.8 63.0
ORACLE BDR ORCL34 BZ 109,297.0 -5,768.0 12,122.0
ORACLE CO-CEDEAR ORCLC AR 109,297.0 -5,768.0 12,122.0
ORACLE CO-CEDEAR ORCL AR 109,297.0 -5,768.0 12,122.0
ORACLE CO-CEDEAR ORCLD AR 109,297.0 -5,768.0 12,122.0
ORACLE CORP ORCL* MM 109,297.0 -5,768.0 12,122.0
ORACLE CORP ORCL US 109,297.0 -5,768.0 12,122.0
ORACLE CORP ORC GR 109,297.0 -5,768.0 12,122.0
ORACLE CORP ORC TH 109,297.0 -5,768.0 12,122.0
ORACLE CORP ORCL TE 109,297.0 -5,768.0 12,122.0
ORACLE CORP ORCL SW 109,297.0 -5,768.0 12,122.0
ORACLE CORP ORCLEUR EU 109,297.0 -5,768.0 12,122.0
ORACLE CORP ORC QT 109,297.0 -5,768.0 12,122.0
ORACLE CORP 0R1Z LN 109,297.0 -5,768.0 12,122.0
ORACLE CORP ORCL AV 109,297.0 -5,768.0 12,122.0
ORACLE CORP ORCL CI 109,297.0 -5,768.0 12,122.0
ORACLE CORP ORC GZ 109,297.0 -5,768.0 12,122.0
ORACLE CORP ORCLEUR EZ 109,297.0 -5,768.0 12,122.0
ORACLE CORP ORCLUSD SW 109,297.0 -5,768.0 12,122.0
ORACLE CORP ORCLCL CI 109,297.0 -5,768.0 12,122.0
ORACLE CORP ORCL-RM RM 109,297.0 -5,768.0 12,122.0
ORGANON & CO OGN US 10,614.0 -1,137.0 1,378.0
ORGANON & CO 7XP TH 10,614.0 -1,137.0 1,378.0
ORGANON & CO OGN-WEUR EU 10,614.0 -1,137.0 1,378.0
ORGANON & CO OGN* MM 10,614.0 -1,137.0 1,378.0
ORGANON & CO 7XP GR 10,614.0 -1,137.0 1,378.0
ORGANON & CO 7XP GZ 10,614.0 -1,137.0 1,378.0
ORGANON & CO 7XP QT 10,614.0 -1,137.0 1,378.0
ORGANON & CO OGN-RM RM 10,614.0 -1,137.0 1,378.0
OTIS WORLDWI OTIS US 9,913.0 -4,752.0 -188.0
OTIS WORLDWI 4PG GR 9,913.0 -4,752.0 -188.0
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OTIS WORLDWI OTISEUR EU 9,913.0 -4,752.0 -188.0
OTIS WORLDWI OTISEUR EZ 9,913.0 -4,752.0 -188.0
OTIS WORLDWI OTIS* MM 9,913.0 -4,752.0 -188.0
OTIS WORLDWI 4PG TH 9,913.0 -4,752.0 -188.0
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OTIS WORLDWI OTIS AV 9,913.0 -4,752.0 -188.0
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OTIS WORLDWI-BDR O1TI34 BZ 9,913.0 -4,752.0 -188.0
PANAMERA HOLDING PHCI US 0.0 -0.0 -0.0
PAPA JOHN'S INTL PZZA US 836.3 -232.6 -10.7
PAPA JOHN'S INTL PP1 GR 836.3 -232.6 -10.7
PAPA JOHN'S INTL PZZAEUR EU 836.3 -232.6 -10.7
PAPA JOHN'S INTL PP1 GZ 836.3 -232.6 -10.7
PAPA JOHN'S INTL PP1 TH 836.3 -232.6 -10.7
PAPA JOHN'S INTL PP1 QT 836.3 -232.6 -10.7
PAPAYA GROWTH -A PPYA US 295.2 279.9 1.4
PAPAYA GROWTH OP PPYAU US 295.2 279.9 1.4
PAPAYA GROWTH OP CC40 GR 295.2 279.9 1.4
PAPAYA GROWTH OP PPYAUEUR EU 295.2 279.9 1.4
PET VALU HOLDING PET CN 657.4 -49.4 46.8
PETRO USA INC PBAJ US 0.0 -0.1 -0.1
PHATHOM PHARMACE PHAT US 213.5 -7.0 188.2
PHILIP MORRI-BDR PHMO34 BZ 40,960.0 -7,260.0 -2,171.0
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PHILIP MORRIS IN PM US 40,960.0 -7,260.0 -2,171.0
PHILIP MORRIS IN PM1CHF EU 40,960.0 -7,260.0 -2,171.0
PHILIP MORRIS IN PM1 TE 40,960.0 -7,260.0 -2,171.0
PHILIP MORRIS IN 4I1 TH 40,960.0 -7,260.0 -2,171.0
PHILIP MORRIS IN PMI SW 40,960.0 -7,260.0 -2,171.0
PHILIP MORRIS IN PM1EUR EU 40,960.0 -7,260.0 -2,171.0
PHILIP MORRIS IN PMIZ EB 40,960.0 -7,260.0 -2,171.0
PHILIP MORRIS IN PMIZ IX 40,960.0 -7,260.0 -2,171.0
PHILIP MORRIS IN 4I1 QT 40,960.0 -7,260.0 -2,171.0
PHILIP MORRIS IN PMOR AV 40,960.0 -7,260.0 -2,171.0
PHILIP MORRIS IN 0M8V LN 40,960.0 -7,260.0 -2,171.0
PHILIP MORRIS IN PM1CHF EZ 40,960.0 -7,260.0 -2,171.0
PHILIP MORRIS IN PM1EUR EZ 40,960.0 -7,260.0 -2,171.0
PHILIP MORRIS IN 4I1 GZ 40,960.0 -7,260.0 -2,171.0
PHILIP MORRIS IN PM* MM 40,960.0 -7,260.0 -2,171.0
PHILIP MORRIS IN PM-RM RM 40,960.0 -7,260.0 -2,171.0
PLANET FITNESS I P2LN34 BZ 2,884.1 -229.0 259.8
PLANET FITNESS-A PLNT1EUR EU 2,884.1 -229.0 259.8
PLANET FITNESS-A 3PL QT 2,884.1 -229.0 259.8
PLANET FITNESS-A PLNT US 2,884.1 -229.0 259.8
PLANET FITNESS-A 3PL TH 2,884.1 -229.0 259.8
PLANET FITNESS-A 3PL GR 2,884.1 -229.0 259.8
PLANET FITNESS-A 3PL GZ 2,884.1 -229.0 259.8
PLANTRONICS INC POLY US 2,170.7 -6.4 274.8
PLANTRONICS INC PTM GR 2,170.7 -6.4 274.8
PLANTRONICS INC PLTEUR EU 2,170.7 -6.4 274.8
PLANTRONICS INC PTM GZ 2,170.7 -6.4 274.8
PLANTRONICS INC PTM TH 2,170.7 -6.4 274.8
PLANTRONICS INC PTM QT 2,170.7 -6.4 274.8
POTBELLY CORP PBPB US 245.8 -8.9 -42.3
POTBELLY CORP PTB GR 245.8 -8.9 -42.3
POTBELLY CORP PTB QT 245.8 -8.9 -42.3
POTBELLY CORP PBPBEUR EU 245.8 -8.9 -42.3
POTBELLY CORP PBPBEUR EZ 245.8 -8.9 -42.3
PRIME IMPACT A-A PIAI US 325.2 -12.3 -0.1
PRIME IMPACT ACQ PIAI/U US 325.2 -12.3 -0.1
PROS HOLDINGS IN PRO US 461.8 -25.1 110.4
PROS HOLDINGS IN PH2 GR 461.8 -25.1 110.4
PROS HOLDINGS IN PRO1EUR EU 461.8 -25.1 110.4
PTC THERAPEUTICS PTCT US 1,804.1 -182.2 127.3
PTC THERAPEUTICS BH3 GR 1,804.1 -182.2 127.3
PTC THERAPEUTICS P91 TH 1,804.1 -182.2 127.3
PTC THERAPEUTICS P91 QT 1,804.1 -182.2 127.3
RAPID7 INC RPDEUR EU 1,285.5 -148.2 -53.7
RAPID7 INC R7D TH 1,285.5 -148.2 -53.7
RAPID7 INC RPD US 1,285.5 -148.2 -53.7
RAPID7 INC R7D GR 1,285.5 -148.2 -53.7
RAPID7 INC RPD* MM 1,285.5 -148.2 -53.7
RAPID7 INC R7D GZ 1,285.5 -148.2 -53.7
RAPID7 INC R7D QT 1,285.5 -148.2 -53.7
RAPID7 INC-BDR R2PD34 BZ 1,285.5 -148.2 -53.7
REALREAL INC/THE REAL2EUR EZ 648.4 -107.1 244.8
RED ROCK RESOR-A RRREUR EU 3,070.3 -27.7 143.3
RED ROCK RESOR-A RRK GR 3,070.3 -27.7 143.3
RED ROCK RESOR-A RRK TH 3,070.3 -27.7 143.3
RED ROCK RESOR-A RRR US 3,070.3 -27.7 143.3
REVANCE THERAPEU RVNC US 561.9 -2.6 183.7
REVANCE THERAPEU RTI GR 561.9 -2.6 183.7
REVANCE THERAPEU RTI TH 561.9 -2.6 183.7
REVANCE THERAPEU RTI GZ 561.9 -2.6 183.7
REVANCE THERAPEU RTI QT 561.9 -2.6 183.7
REVANCE THERAPEU RVNCEUR EU 561.9 -2.6 183.7
REVLON INC-A RVL1 GR 2,503.7 -2,348.2 220.4
REVLON INC-A REV US 2,503.7 -2,348.2 220.4
REVLON INC-A REV* MM 2,503.7 -2,348.2 220.4
REVLON INC-A RVL1 TH 2,503.7 -2,348.2 220.4
REVLON INC-A REVEUR EU 2,503.7 -2,348.2 220.4
RIMINI STREET IN RMNI US 386.2 -76.5 -49.8
RIMINI STREET IN 0QH GR 386.2 -76.5 -49.8
RIMINI STREET IN RMNIEUR EU 386.2 -76.5 -49.8
RIMINI STREET IN 0QH QT 386.2 -76.5 -49.8
RITE AID CORP RAD US 8,549.8 -8.4 741.2
RITE AID CORP RTA1 GR 8,549.8 -8.4 741.2
RITE AID CORP RTA1 TH 8,549.8 -8.4 741.2
RITE AID CORP RTA1 QT 8,549.8 -8.4 741.2
RITE AID CORP RADEUR EU 8,549.8 -8.4 741.2
RITE AID CORP RADEUR EZ 8,549.8 -8.4 741.2
RITE AID CORP RTA1 GZ 8,549.8 -8.4 741.2
ROSE HILL ACQU-A ROSE US 147.5 -10.0 0.5
ROSE HILL ACQUIS ROSEU US 147.5 -10.0 0.5
SABRE CORP SABR US 5,176.7 -606.6 840.9
SABRE CORP 19S GR 5,176.7 -606.6 840.9
SABRE CORP 19S TH 5,176.7 -606.6 840.9
SABRE CORP SABREUR EU 5,176.7 -606.6 840.9
SABRE CORP 19S QT 5,176.7 -606.6 840.9
SABRE CORP SABREUR EZ 5,176.7 -606.6 840.9
SABRE CORP 19S GZ 5,176.7 -606.6 840.9
SBA COMM CORP 4SB GR 10,011.9 -5,398.7 -823.3
SBA COMM CORP SBAC US 10,011.9 -5,398.7 -823.3
SBA COMM CORP 4SB TH 10,011.9 -5,398.7 -823.3
SBA COMM CORP 4SB GZ 10,011.9 -5,398.7 -823.3
SBA COMM CORP SBAC* MM 10,011.9 -5,398.7 -823.3
SBA COMM CORP SBACEUR EU 10,011.9 -5,398.7 -823.3
SBA COMM CORP 4SB QT 10,011.9 -5,398.7 -823.3
SEAWORLD ENTERTA SEAS US 2,396.6 -401.5 -168.3
SEAWORLD ENTERTA W2L GR 2,396.6 -401.5 -168.3
SEAWORLD ENTERTA W2L TH 2,396.6 -401.5 -168.3
SEAWORLD ENTERTA W2L QT 2,396.6 -401.5 -168.3
SEAWORLD ENTERTA SEASEUR EU 2,396.6 -401.5 -168.3
SEAWORLD ENTERTA W2L GZ 2,396.6 -401.5 -168.3
SHELL MIDSTREAM SHLX US 2,231.0 -441.0 62.0
SHUTTLE PHARMACE SHPH US 0.2 -2.3 -2.4
SILVER SPIKE-A SPKC/U CN 128.3 -6.7 0.6
SIRIUS XM HO-BDR SRXM34 BZ 10,270.0 -3,579.0 -1,751.0
SIRIUS XM HOLDIN SIRI US 10,270.0 -3,579.0 -1,751.0
SIRIUS XM HOLDIN RDO GR 10,270.0 -3,579.0 -1,751.0
SIRIUS XM HOLDIN RDO TH 10,270.0 -3,579.0 -1,751.0
SIRIUS XM HOLDIN SIRI SW 10,270.0 -3,579.0 -1,751.0
SIRIUS XM HOLDIN RDO QT 10,270.0 -3,579.0 -1,751.0
SIRIUS XM HOLDIN SIRIEUR EU 10,270.0 -3,579.0 -1,751.0
SIRIUS XM HOLDIN RDO GZ 10,270.0 -3,579.0 -1,751.0
SIRIUS XM HOLDIN SIRI AV 10,270.0 -3,579.0 -1,751.0
SIRIUS XM HOLDIN SIRIEUR EZ 10,270.0 -3,579.0 -1,751.0
SIX FLAGS ENTERT 6FE GR 2,713.8 -537.3 -377.1
SIX FLAGS ENTERT SIX US 2,713.8 -537.3 -377.1
SIX FLAGS ENTERT 6FE QT 2,713.8 -537.3 -377.1
SIX FLAGS ENTERT SIXEUR EU 2,713.8 -537.3 -377.1
SIX FLAGS ENTERT 6FE TH 2,713.8 -537.3 -377.1
SKYX PLATFORMS C SKYX US 29.4 15.4 21.8
SLEEP NUMBER COR SL2 GR 950.1 -443.0 -723.4
SLEEP NUMBER COR SNBR US 950.1 -443.0 -723.4
SLEEP NUMBER COR SNBREUR EU 950.1 -443.0 -723.4
SLEEP NUMBER COR SL2 TH 950.1 -443.0 -723.4
SLEEP NUMBER COR SL2 QT 950.1 -443.0 -723.4
SLEEP NUMBER COR SL2 GZ 950.1 -443.0 -723.4
SMILEDIRECTCLUB SDC* MM 700.6 -258.5 237.4
SPLUNK INC S0U GR 5,209.6 -684.0 1,097.4
SPLUNK INC SPLK US 5,209.6 -684.0 1,097.4
SPLUNK INC S0U QT 5,209.6 -684.0 1,097.4
SPLUNK INC S0U TH 5,209.6 -684.0 1,097.4
SPLUNK INC S0U GZ 5,209.6 -684.0 1,097.4
SPLUNK INC SPLKEUR EZ 5,209.6 -684.0 1,097.4
SPLUNK INC SPLK* MM 5,209.6 -684.0 1,097.4
SPLUNK INC SPLKEUR EU 5,209.6 -684.0 1,097.4
SPLUNK INC SPLK-RM RM 5,209.6 -684.0 1,097.4
SPLUNK INC - BDR S1PL34 BZ 5,209.6 -684.0 1,097.4
SPRAGUE RESOURCE SRLP US 1,334.3 -95.2 -519.7
SQUARESPACE -BDR S2QS34 BZ 994.3 -42.1 -74.5
SQUARESPACE IN-A SQSP US 994.3 -42.1 -74.5
SQUARESPACE IN-A 8DT GR 994.3 -42.1 -74.5
SQUARESPACE IN-A 8DT GZ 994.3 -42.1 -74.5
SQUARESPACE IN-A SQSPEUR EU 994.3 -42.1 -74.5
SQUARESPACE IN-A 8DT TH 994.3 -42.1 -74.5
SQUARESPACE IN-A 8DT QT 994.3 -42.1 -74.5
STARBUCKS CORP SBUX* MM 28,156.2 -8,658.9 -1,334.9
STARBUCKS CORP SRB GR 28,156.2 -8,658.9 -1,334.9
STARBUCKS CORP SRB TH 28,156.2 -8,658.9 -1,334.9
STARBUCKS CORP SBUX SW 28,156.2 -8,658.9 -1,334.9
STARBUCKS CORP SRB QT 28,156.2 -8,658.9 -1,334.9
STARBUCKS CORP SBUX US 28,156.2 -8,658.9 -1,334.9
STARBUCKS CORP SBUX CI 28,156.2 -8,658.9 -1,334.9
STARBUCKS CORP SBUX AV 28,156.2 -8,658.9 -1,334.9
STARBUCKS CORP SBUXEUR EU 28,156.2 -8,658.9 -1,334.9
STARBUCKS CORP SBUX TE 28,156.2 -8,658.9 -1,334.9
STARBUCKS CORP SBUX IM 28,156.2 -8,658.9 -1,334.9
STARBUCKS CORP SBUXEUR EZ 28,156.2 -8,658.9 -1,334.9
STARBUCKS CORP 0QZH LI 28,156.2 -8,658.9 -1,334.9
STARBUCKS CORP SBUXUSD SW 28,156.2 -8,658.9 -1,334.9
STARBUCKS CORP SRB GZ 28,156.2 -8,658.9 -1,334.9
STARBUCKS CORP SBUX PE 28,156.2 -8,658.9 -1,334.9
STARBUCKS CORP SBUX-RM RM 28,156.2 -8,658.9 -1,334.9
STARBUCKS CORP SBUXCL CI 28,156.2 -8,658.9 -1,334.9
STARBUCKS CORP SBUX_KZ KZ 28,156.2 -8,658.9 -1,334.9
STARBUCKS-BDR SBUB34 BZ 28,156.2 -8,658.9 -1,334.9
STARBUCKS-CEDEAR SBUX AR 28,156.2 -8,658.9 -1,334.9
STARBUCKS-CEDEAR SBUXD AR 28,156.2 -8,658.9 -1,334.9
STONEMOR INC STON US 1,798.0 -174.7 106.4
STONEMOR INC 3V8 GR 1,798.0 -174.7 106.4
STONEMOR INC STONEUR EU 1,798.0 -174.7 106.4
SYMBOTIC INC SYM US 612.8 73.1 146.1
TELA BIO INC TELA US 51.3 -1.5 33.7
TEMPUR SEALY INT TPX US 4,404.4 -180.9 248.1
TEMPUR SEALY INT TPD GR 4,404.4 -180.9 248.1
TEMPUR SEALY INT TPXEUR EU 4,404.4 -180.9 248.1
TEMPUR SEALY INT TPD TH 4,404.4 -180.9 248.1
TEMPUR SEALY INT TPD GZ 4,404.4 -180.9 248.1
TEMPUR SEALY INT T2PX34 BZ 4,404.4 -180.9 248.1
TEMPUR SEALY INT TPX-RM RM 4,404.4 -180.9 248.1
TERRAN ORBITAL C LLAP US 165.3 -52.5 28.2
TORRID HOLDINGS CURV US 567.2 -254.9 -74.5
TRANSDIGM - BDR T1DG34 BZ 18,819.0 -2,968.0 4,964.0
TRANSDIGM GROUP TDG US 18,819.0 -2,968.0 4,964.0
TRANSDIGM GROUP T7D GR 18,819.0 -2,968.0 4,964.0
TRANSDIGM GROUP TDG* MM 18,819.0 -2,968.0 4,964.0
TRANSDIGM GROUP T7D TH 18,819.0 -2,968.0 4,964.0
TRANSDIGM GROUP TDGEUR EZ 18,819.0 -2,968.0 4,964.0
TRANSDIGM GROUP T7D QT 18,819.0 -2,968.0 4,964.0
TRANSDIGM GROUP TDGEUR EU 18,819.0 -2,968.0 4,964.0
TRANSDIGM GROUP TDG-RM RM 18,819.0 -2,968.0 4,964.0
TRAVEL + LEISURE WD5A TH 6,477.0 -846.0 521.0
TRAVEL + LEISURE WD5A GR 6,477.0 -846.0 521.0
TRAVEL + LEISURE 0M1K LI 6,477.0 -846.0 521.0
TRAVEL + LEISURE TNL US 6,477.0 -846.0 521.0
TRAVEL + LEISURE WD5A QT 6,477.0 -846.0 521.0
TRAVEL + LEISURE WYNEUR EU 6,477.0 -846.0 521.0
TRAVEL + LEISURE WD5A GZ 6,477.0 -846.0 521.0
TRAVEL + LEISURE TNL* MM 6,477.0 -846.0 521.0
TRICIDA INC TCDA US 114.3 -111.2 82.3
TRICIDA INC 1T7 GR 114.3 -111.2 82.3
TRICIDA INC 1T7 TH 114.3 -111.2 82.3
TRICIDA INC 1T7 QT 114.3 -111.2 82.3
TRICIDA INC TCDAEUR EZ 114.3 -111.2 82.3
TRICIDA INC 1T7 GZ 114.3 -111.2 82.3
TRIUMPH GROUP TG7 GR 1,667.5 -805.3 341.5
TRIUMPH GROUP TGI US 1,667.5 -805.3 341.5
TRIUMPH GROUP TG7 TH 1,667.5 -805.3 341.5
TRIUMPH GROUP TGIEUR EU 1,667.5 -805.3 341.5
TRIUMPH GROUP TG7 GZ 1,667.5 -805.3 341.5
UBIQUITI INC UI US 844.7 -382.9 310.6
UBIQUITI INC 3UB GR 844.7 -382.9 310.6
UBIQUITI INC UBNTEUR EU 844.7 -382.9 310.6
UBIQUITI INC 3UB TH 844.7 -382.9 310.6
UNISYS CORP USY1 TH 2,154.4 -98.5 308.3
UNISYS CORP USY1 GR 2,154.4 -98.5 308.3
UNISYS CORP UIS US 2,154.4 -98.5 308.3
UNISYS CORP UIS SW 2,154.4 -98.5 308.3
UNISYS CORP UISEUR EU 2,154.4 -98.5 308.3
UNISYS CORP USY1 GZ 2,154.4 -98.5 308.3
UNISYS CORP USY1 QT 2,154.4 -98.5 308.3
UNISYS CORP UISEUR EZ 2,154.4 -98.5 308.3
UNITI GROUP INC UNIT US 4,955.2 -2,075.2 0.0
UNITI GROUP INC 8XC TH 4,955.2 -2,075.2 0.0
UNITI GROUP INC 8XC GR 4,955.2 -2,075.2 0.0
UNITI GROUP INC 8XC GZ 4,955.2 -2,075.2 0.0
UROGEN PHARMA LT UR8 GR 146.1 -40.9 121.6
UROGEN PHARMA LT URGNEUR EU 146.1 -40.9 121.6
UROGEN PHARMA LT URGN US 146.1 -40.9 121.6
USD PARTNERS LP USDP US 233.8 -30.7 0.9
VECTOR GROUP LTD VGR US 994.6 -830.9 296.9
VECTOR GROUP LTD VGR GR 994.6 -830.9 296.9
VECTOR GROUP LTD VGR QT 994.6 -830.9 296.9
VECTOR GROUP LTD VGREUR EU 994.6 -830.9 296.9
VECTOR GROUP LTD VGREUR EZ 994.6 -830.9 296.9
VECTOR GROUP LTD VGR TH 994.6 -830.9 296.9
VECTOR GROUP LTD VGR GZ 994.6 -830.9 296.9
VERISIGN INC VRS TH 1,762.5 -1,455.0 -5.0
VERISIGN INC VRSN US 1,762.5 -1,455.0 -5.0
VERISIGN INC VRS GR 1,762.5 -1,455.0 -5.0
VERISIGN INC VRS QT 1,762.5 -1,455.0 -5.0
VERISIGN INC VRSNEUR EU 1,762.5 -1,455.0 -5.0
VERISIGN INC VRS GZ 1,762.5 -1,455.0 -5.0
VERISIGN INC VRSN* MM 1,762.5 -1,455.0 -5.0
VERISIGN INC VRSNEUR EZ 1,762.5 -1,455.0 -5.0
VERISIGN INC VRSN-RM RM 1,762.5 -1,455.0 -5.0
VERISIGN INC-BDR VRSN34 BZ 1,762.5 -1,455.0 -5.0
VERISIGN-CEDEAR VRSN AR 1,762.5 -1,455.0 -5.0
VIVINT SMART HOM VVNT US 2,908.3 -1,715.6 -482.5
VIVINT SMART HOM V2VN34 BZ 2,908.3 -1,715.6 -482.5
W&T OFFSHORE INC UWV GR 1,439.8 -124.4 164.2
W&T OFFSHORE INC WTI US 1,439.8 -124.4 164.2
W&T OFFSHORE INC WTI1EUR EU 1,439.8 -124.4 164.2
W&T OFFSHORE INC UWV TH 1,439.8 -124.4 164.2
W&T OFFSHORE INC UWV GZ 1,439.8 -124.4 164.2
WAYFAIR INC- A W US 4,098.0 -2,145.0 242.0
WAYFAIR INC- A 1WF GR 4,098.0 -2,145.0 242.0
WAYFAIR INC- A 1WF TH 4,098.0 -2,145.0 242.0
WAYFAIR INC- A WEUR EU 4,098.0 -2,145.0 242.0
WAYFAIR INC- A W* MM 4,098.0 -2,145.0 242.0
WAYFAIR INC- A 1WF GZ 4,098.0 -2,145.0 242.0
WAYFAIR INC- A 1WF QT 4,098.0 -2,145.0 242.0
WAYFAIR INC- A WEUR EZ 4,098.0 -2,145.0 242.0
WEBER INC - A WEBR US 1,721.7 -243.0 228.7
WEWORK INC-CL A WE US 19,638.0 -2,317.0 -889.0
WEWORK INC-CL A WE1EUR EU 19,638.0 -2,317.0 -889.0
WEWORK INC-CL A 9WE GR 19,638.0 -2,317.0 -889.0
WEWORK INC-CL A 9WE TH 19,638.0 -2,317.0 -889.0
WEWORK INC-CL A 9WE QT 19,638.0 -2,317.0 -889.0
WEWORK INC-CL A 9WE GZ 19,638.0 -2,317.0 -889.0
WEWORK INC-CL A WE* MM 19,638.0 -2,317.0 -889.0
WINGSTOP INC WING1EUR EU 395.4 -415.5 156.8
WINGSTOP INC WING US 395.4 -415.5 156.8
WINGSTOP INC EWG GR 395.4 -415.5 156.8
WINGSTOP INC EWG GZ 395.4 -415.5 156.8
WINMARK CORP WINA US 27.1 -68.8 2.0
WINMARK CORP GBZ GR 27.1 -68.8 2.0
WW INTERNATIONAL WW US 1,390.6 -456.1 57.2
WW INTERNATIONAL WW6 GR 1,390.6 -456.1 57.2
WW INTERNATIONAL WTWEUR EU 1,390.6 -456.1 57.2
WW INTERNATIONAL WW6 QT 1,390.6 -456.1 57.2
WW INTERNATIONAL WW6 TH 1,390.6 -456.1 57.2
WW INTERNATIONAL WTWEUR EZ 1,390.6 -456.1 57.2
WW INTERNATIONAL WW6 GZ 1,390.6 -456.1 57.2
WW INTERNATIONAL WTW AV 1,390.6 -456.1 57.2
WW INTERNATIONAL WW-RM RM 1,390.6 -456.1 57.2
WYNN RESORTS LTD WYNN* MM 11,788.5 -1,374.3 753.9
WYNN RESORTS LTD WYNN US 11,788.5 -1,374.3 753.9
WYNN RESORTS LTD WYR GR 11,788.5 -1,374.3 753.9
WYNN RESORTS LTD WYR TH 11,788.5 -1,374.3 753.9
WYNN RESORTS LTD WYR QT 11,788.5 -1,374.3 753.9
WYNN RESORTS LTD WYNNEUR EU 11,788.5 -1,374.3 753.9
WYNN RESORTS LTD WYR GZ 11,788.5 -1,374.3 753.9
WYNN RESORTS LTD WYNNEUR EZ 11,788.5 -1,374.3 753.9
WYNN RESORTS LTD WYNN-RM RM 11,788.5 -1,374.3 753.9
WYNN RESORTS-BDR W1YN34 BZ 11,788.5 -1,374.3 753.9
YELLOW CORP YEL GR 2,503.9 -324.1 255.7
YELLOW CORP YELL US 2,503.9 -324.1 255.7
YELLOW CORP YEL1 TH 2,503.9 -324.1 255.7
YELLOW CORP YRCWEUR EZ 2,503.9 -324.1 255.7
YELLOW CORP YEL QT 2,503.9 -324.1 255.7
YELLOW CORP YRCWEUR EU 2,503.9 -324.1 255.7
YELLOW CORP YEL GZ 2,503.9 -324.1 255.7
YUM! BRANDS INC TGR TH 5,790.0 -8,568.0 246.0
YUM! BRANDS INC TGR GR 5,790.0 -8,568.0 246.0
YUM! BRANDS INC YUMEUR EU 5,790.0 -8,568.0 246.0
YUM! BRANDS INC TGR QT 5,790.0 -8,568.0 246.0
YUM! BRANDS INC YUM SW 5,790.0 -8,568.0 246.0
YUM! BRANDS INC YUM US 5,790.0 -8,568.0 246.0
YUM! BRANDS INC YUM* MM 5,790.0 -8,568.0 246.0
YUM! BRANDS INC TGR GZ 5,790.0 -8,568.0 246.0
YUM! BRANDS INC YUMEUR EZ 5,790.0 -8,568.0 246.0
YUM! BRANDS INC YUMUSD SW 5,790.0 -8,568.0 246.0
YUM! BRANDS INC YUM AV 5,790.0 -8,568.0 246.0
YUM! BRANDS INC TGR TE 5,790.0 -8,568.0 246.0
YUM! BRANDS INC YUM-RM RM 5,790.0 -8,568.0 246.0
*********
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
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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
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are $25 each. For subscription information, contact Peter A.
Chapman at 215-945-7000.
*** End of Transmission ***