/raid1/www/Hosts/bankrupt/TCR_Public/220928.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Wednesday, September 28, 2022, Vol. 26, No. 270
Headlines
8E14 NETWORKS: Auction of Substantially All Assets Set for Oct. 19
ALLEVA DAIRY: Case Summary & Seven Unsecured Creditors
BOYCE HYDRO: Trustee's $168K Sale of Hay Township Property Approved
BRIAN MICHAEL MARSHALL: $2.4M Sale of Tampa Property to Kashou OK'd
C & M ELECTRICAL: Sale of Landscaping Equipment & Vehicles Approved
CELSIUS NETWORK: Appointment of Preferred Equity Committee Sought
CHICK LUMBER: Gets Court Nod to Use Cash Collateral Thru Dec 31
CHILLKING CHILLERs: Seeks Cash Collateral Access
CITY LIVING KC LLC: Commences Subchapter V Case
CLARUS THERAPEUTICS: Sets Bidding Procedures for Sale of All Assets
COLONIAL GATE: Wins Access to Cash Collateral Thru Oct 19
CREDITO REAL SAB: Corporate Lawyer Says Liquidation Isn't Suspended
CROWN COMMERCIAL: Court OKs Interim Cash Collateral Access
CSK PROPERTIES: $400K Sale of Spartanburg Property to PGSW Approved
CVFI-444 S FLOWER: Partnership Interests Up for Nov. 18 Auction
D & L REAL ESTATE: Unsecureds to be Paid in Full in Plan
DOUGLAS B. EVANS: $30K Sale of 2003 Porsche 996 to Glomstad Okayed
ECHELON CONSTRUCTION: Seeks Cash Collateral Access
FELIX QUIROZ, JR: Selling Midland County Subdivision Lot for $80K
FLAVIO ALMEIDA MARTINS: Brother Buying Jersey Dry Cows for $315K
FORTEM RESOURCES: $700K Sale of All Assets to Pimee Energy Approved
FREE SPEECH SYSTEMS: Can't Retain Attorneys for Chapter 11 Case
GABHALTAIS TEAGHLAIGH: Wins Cash Collateral Access Thru Dec 14
GT REAL ESTATE: Bankruptcy Plan Heads to Creditor Vote
HERTZ CORP: Sued in Delaware for False Arrest Claims
HOME STRATEGY: Taps Ginsberg & Misk as Special Counsel
HONX INC: Mediation Fails in Chapter 11 Case
HOYOS INTEGRITY: Court OKs $2.5MM Increase of DIP Loan
JJS LOGISTICS: Auction Sale of Property & Vehicles Set for Sept. 28
JOHN V. GALLY: Gets OK to Hire Stephens & Company as Accountant
LIONHEART TRAUMA: Wins Interim Cash Collateral Access
LTL MANAGEMENT: Claimants Tell 3rd Circuit Chapter 11 Was Bad Faith
MASTEN SPACE: Gets OK to Hire Stretto Inc. as Balloting Agent
METROPOLITAN COLLEGE: Fitch Lowers IDR to 'BB-', Outlook Negative
MURPHY CREEK ESTATES: Files Bare-Bones Chapter 11 Petition
NEWAGE INC: Judge Approves Quick Chapter 11 Auction
OLYMPIA SPORTS: U.S. Trustee Appoints Creditors' Committee
PHOENIX SERVICES: Case Summary & 30 Largest Unsecured Creditors
PUERTO RICO: PREPA and Bondholders Headed for Litigation
QUICKER LIQUOR: Disclosures Okayed Subject to Revisions
SANDY ROAD: Taps United Country Commercial as Auctioneer
SAVVA'S RESTAURANT: Court Approves Disclosure Statement
SOMM INC: Gets OK to Hire Hurwitz Wheeler & Co. as Tax Accountant
SOUTH EDGE: Court OKs Deal on Cash Collateral Access
STARLIN LLC: Affiliates Tap Leech Tishman Robinson Brog as Counsel
SUMMIT II LLC: Starts Subchapter V Case
SUNNY MILLS: U.S. Trustee Unable to Appoint Committee
SUNSATION ENERGY: Commences Subchapter V Case
SUNSATION ENERGY: Seeks to Tap Buddy Ford as Bankruptcy Counsel
TCN LIBERTY: Capital Contribution to Fund Plan Payments
TREETOP DEVELOPMENT: Sues Skylark Over Loan-to-Own Scheme
VIRGINIA TRUE: Unsecureds' Recovery Lowered to 70% in Creditor Plan
VOYAGER DIGITAL: Alameda to Repay $200 Million in Ether and Bitcoin
VOYAGER DIGITAL: Seeks to Hire Marcum LLP as Auditor
VOYAGER DIGITAL: Taps Grant Thornton as Tax Advisor
WC BRAKER: Case Trustee Wins Cash Collateral Access
WEIRD VENDING: Wins Cash Collateral Access Thru Nov 7
[*] Credit Suisse Reaches $32.5M Deal With Investors
*********
8E14 NETWORKS: Auction of Substantially All Assets Set for Oct. 19
------------------------------------------------------------------
Judge Brendan L. Shannon of the U.S. Bankruptcy Court for the
District of Delaware authorized the bidding procedures proposed by
8e14 Networks, Inc., d/b/a Ananda Networks, in connection with the
auction sale of substantially all of its assets.
The Debtor is authorized to enter into the Stalking Horse Agreement
(including any and all amendments), subject to the terms set forth
and in any subsequent order of the Court with respect to the sale
or other disposition of its assets.
The salient terms of the Bidding Procedures are:
a. Bid Deadline: Oct. 17, 2022, at 5:00 p.m. (ET)
b. Initial Bid: The Initial Overbid to the Stalking Horse Bid
will be in an amount of no less than the value of the Stalking
Horse Bid, plus the value of the Bid Protections, plus a value
equal to $100,000.
c. Deposit: 10% of the aggregate value of the cash and
non-cash consideration of the Bid to be held in one or more escrow
accounts
d. Auction: An Auction, if any, will be held at 10:00 a.m.
(ET) on Oct. 19, 2022, either via videoconference or at the offices
of Womble Bond Dickinson (US) LLP, 1313 N. Market Street, Suite
1200, Wilmington, DE 19801, or such later date and time or location
as selected by the Debtor.
e. Bid Increments: $100,000
f. Sale Hearing: Oct. 24, 2022 at 10:00 a.m. (ET)
g. Sale Objection Deadline: Oct. 20, 2022 at 4:00 p.m. (ET)
h. Credit Bidding: Any Qualified Bidder who has a valid and
perfected lien on any assets of the Debtor's estate will have the
right to credit bid all or a portion of the value of such Secured
Creditor's claims.
i. The Bid Protections, as modified herein and in the Bidding
Procedures, are approved and are allowed as an administrative
expense claim, and will be paid promptly, in cash, within three
business days following the consummation of the Alternative
Transaction.
The Assumption and Assignment Notice is approved. The Debtor will
file with the Court, and serve on the non-debtor counterparty to
contracts that the Winning Bidder may seek to assume, the
Assumption and Assignment Notice. The Cure Objection Deadline is
Oct. 14, 2022 at 4:00 p.m. (ET).
The requirements of Bankruptcy Rules 6004(h) and 6006(d) are
waived.
Notwithstanding Bankruptcy Rule 6004(h), the terms and conditions
of the Order are immediately effective and enforceable upon its
entry.
The Debtor is authorized to take all actions necessary to
effectuate the relief granted in the Order in accordance with the
Motion.
A copy of the Bidding Procedures is available for free at
https://tinyurl.com/5e8npjtc from PacerMonitor.com free of charge.
About 8e14 Networks Inc.
8e14 Networks Inc. -- https://www.ananda.net/ -- doing business as
Ananda Networks, is a Cyber Security company that builds a network
that is fast and secure, replacing old cybersecurity and
networking
products.
8e14 Networks Inc. filed a voluntary petition for relief under
Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. D. Del.
Case No. 22-10708) on Aug. 4, 2022. In the petition filed by Adi
Ruppin, as chief executive officer, the Debtor reported assets and
liabilities between $10 million and $50 million each.
Judge Brendan L. Shannon oversees the case.
Jami B Nimeroff has been appointed as Subchapter V trustee.
Matthew P. Ward, Esq., at Womble Bond Dickinson (US) LLP, is the
Debtor's counsel.
ALLEVA DAIRY: Case Summary & Seven Unsecured Creditors
------------------------------------------------------
Debtor: Alleva Dairy Inc.
188 Grand Street
New York, NY 10013
Business Description: Alleva Dairy Inc. is a privately held
company in the cheese shop business.
Chapter 11 Petition Date: September 27, 2022
Court: United States Bankruptcy Court
Southern District of New York
Case No.: 22-11284
Judge: Hon. David S. Jones
Debtor's Counsel: Fred S. Kantrow, Esq.
THE KANTROW LAW GROUP, PLLC
6901 Jericho Turnpike
Suite 230
Syosset, NY 11791
Email: fkantrow@thekantrowlawgroup.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Karen Fouquet as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's seven unsecured creditors is available for
free at PacerMonitor.com at:
https://www.pacermonitor.com/view/XARIQHA/Alleva_Dairy_Inc__nysbke-22-11284__0001.0.pdf?mcid=tGE4TAMA
BOYCE HYDRO: Trustee's $168K Sale of Hay Township Property Approved
-------------------------------------------------------------------
Judge Daniel S. Opperman of the U.S. Bankruptcy Court for the
Eastern District of Michigan authorized the sale proposed by Scott
Wolfson, the liquidating trustee appointed in the Chapter 11 cases
of Boyce Hydro, LLC, and Boyce Hydro Power, LLC, of approximately
69.11 acres of real property commonly referred to as Parcel 2 at
759 Oren Court, Township of Hay, Gladwin County, Michigan 48624, to
Kyle and Christine Ann Cafarelli for $167,500, cash.
The sale is free and clear of all liens, claims, and encumbrances,
with all liens, claims, and encumbrances attaching to the proceeds
of sale.
The Liquidating Trustee is authorized (i) to pay reasonable and
necessary escrow and closing costs to effectuate the sale; (ii) to
compensate Vanas a sales commission of 3% of the sales price,
$5,025, at closing; and (iii) to remit to the Buyers' agent their
sales commission of 3% of the sales price, $5,025, at closing.
To the extent applicable, the 14-day stay of Fed. R. Bankr. P.
6004(h) is waived.
About Boyce Hydro
Boyce Hydro, LLC and Boyce Hydro Power, LLC, Michigan-based
providers of electrical power services, sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. E.D. Mich. Lead Case No.
20-21214) on July 31, 2020. At the time of the filing, the
Debtors
each disclosed up to $50 million in assets and up to $10 million
in
liabilities.
Judge Daniel S. Oppermanbaycity oversees the cases.
Goldstein & McClintock LLP, led by Matthew E. McClintock, Esq., is
the Debtors' legal counsel.
On Feb. 25, 2021, the court entered a nonconsensual order, which
confirmed the Debtors' joint consolidated Chapter 11 plan of
liquidation, and approved the establishment of the Boyce Hydro
liquidating trust and Scott A. Wolfson's appointment as
liquidating
trustee. The plan was declared effective on March 3, 2021.
The liquidating trustee tapped Wolfson Bolton PLLC as bankruptcy
counsel, Honigman LLP and Steinhardt Pesick & Cohen P.C. as
special
counsel, and Plante & Moran, PLLC as accountant. Stretto is the
claims agent.
BRIAN MICHAEL MARSHALL: $2.4M Sale of Tampa Property to Kashou OK'd
-------------------------------------------------------------------
Judge Roberta A. Colton of the U.S. Bankruptcy Court for the Middle
District of Florida authorized Brian Michael Marshall to sell his
exempt homestead property, at 600 Garrison Cove Lane, Unit 2C, in
Tampa, Florida 33602, to Hisham Kashou for $2.4 million.
A hearing on the Motion was held on Sept. 6, 2022, at 1:30 p.m.
The sale of the Property will be free and clear of the following
liens, claims, and encumbrances:
a. The claim of Elizabeth Forest Mann;
b. The secured claim of the Internal Revenue Service;
c. The secured claim of the Garrison Association;
d. The secured claim of Branch Banking & Trust Co.;
e. The secured claims of Electric Supply of Tampa, Inc.
f. The secured claim of V.W. Credit Leasing Ltd.;
g. The claim of U.S. Securities and Exchange Commission;
h. Any claim of Fireline Restoration, Inc.; and
i. Any claim of Initiech Restoration, Inc.
The secured claims of PNC Bank, the Internal Revenue Service,
Harbour Island Community Services Association, Garrison Condominium
Association, and customary closing costs will be paid at the
closing of the sale of the Property, and any liens will attach to
the proceeds of the sale to the same extent, validity and priority.
Subject to any further agreement between PNC Bank and the Debtor,
the agreed payoff of $1,163,499.60 is good through Sept. 15, 2022.
Any further extensions to the closing date must be agreed to by and
between PNC Bank and the Debtor. Further, in the event the sale of
the Property does not close by Sept. 15, 2022, then the Debtor will
obtain an updated payoff quote for the underlying loan that is good
through whatever extended closing date PNC Bank and the Debtor may
agree to before the Debtor can proceed with the sale and related
closing on the Property.
Nothing in the Order, however, is intended to affect, modify or
cancel the existing foreclosure sale date scheduled in the state
court foreclosure action.
Brian Michael Marshall sought Chapter 11 protection (Bankr. M.D.
Fla. Case No. 17-06179) on July 17, 2017. The Debtor tapped Eric
D
Jacobs, Esq., at Jennis Law Firm as counsel. On Dec. 23, 2019,
the
Court confirmed the Debtor's Chapter 11 Plan.
C & M ELECTRICAL: Sale of Landscaping Equipment & Vehicles Approved
-------------------------------------------------------------------
Judge James R. Sacca of the U.S. Bankruptcy Court for the Northern
District of Georgia authorized C & M Electrical Contractors, Inc.,
and affiliates to sell the following assets for not less than the
prices listed:
a. Lawn and landscaping equipment: one tractor, six-foot
mower, finishing mower, bush hog ($3,500 total);
b. 2013 Dodge Ram 1500 3C6JR6AP3DG577185 ($8,172.80);
c. 2013 Dodge Ram 1500 3C6JR6AP1DG5577184 ($8,172.80);
d. 2013 Chevy Silverado 1500 1GCNCPEX0DZ254725 ($8,221.60);
e. 2013 Chevy Silverado 1500 1GCNCPEX9DZ344620 ($8,221.60);
f. 2016 Ford F150 1FTMF1C80GRD13667 ($16,612.80); and
g. 2016 Ford F150 1FTMF1C85GKE38258 ($16,140.80).
The landscaping equipment listed may be sold to Mary Lee Esco;
however none of the vehicles listed may be sold to any insider
absent further order of the Court.
All proceeds from any sale authorized under the Order will be
deposited into the Debtor's DIP account or other such account that
has been approved by the United States Trustee.
Within 14 days of any such sale, the Debtor will file a report of
sale with the Court indicating (a) the asset sold, (b) the buyer of
such asset, and (c) the proceeds received in exchange for each
asset sold.
The Debtor is authorized to take all actions and to execute and
deliver all documents and instruments necessary to implement the
relief granted in the Order.
The provisions of Federal Rule of Bankruptcy Procedure 6004(h) are
waived, and the Order will be effective immediately upon entry.
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.
CELSIUS NETWORK: Appointment of Preferred Equity Committee Sought
-----------------------------------------------------------------
A group of equity holders asked the U.S. Bankruptcy Court for the
Southern District of New York to direct the appointment of an
official committee that will represent holders of Celsius Network
Limited's preferred equity securities.
In court papers, Dennis Dunne, Esq., one of the attorneys
representing the equity holders, argued the appointment of an
equity committee is necessary to ensure that equity holders are on
equal footing with other major stakeholders, including retail
customers who are represented by the official committee of
unsecured creditors.
Mr. Dunne said CNL and its affiliates, including Celsius Network
LLC, "cannot be relied on to adequately represent the equity
holders' interests."
"Because the debtors require the support and confidence of their
customers if they are to continue as a going concern, management is
understandably focused on protecting the customers' interests," the
attorney said.
Mr. Dunne believes that CNL is not insolvent and that a "meaningful
recovery" for the equity holders is very likely, if not certain.
According to the attorney, there are assets owned by CNL and its
subsidiaries, including GK8 Ltd., Celsius Mining LLC and Celsius
Mining IL Ltd., whose value inures largely to equity holders
because customers do not have claims against these companies and
these companies have very little debt.
These assets include bitcoin mining equipment, mined bitcoin and
other assets used by the Celsius Mining subsidiaries; CNL's loan
portfolio that is expected to be paid over time and other
investments; and the equity in GK8, a wholly owned subsidiary of
CNL purchased for $115 million with funds invested by equity
holders.
Mr. Dunne said they will contest any move by the unsecured
creditors' committee to pursue claims against every Celsius entity
on behalf of customers.
The equity holders are represented by:
Dennis F. Dunne, Esq.
Nelly Almeida, Esq.
Milbank, LLP
55 Hudson Yards
New York, NY 10001
Tel: (212) 530-5000
Fax: (212) 660-5219
Email: ddunne@milbank.com
nalmeida@milbank.com
- and -
Andrew M. Leblanc, Esq.
Melanie Westover Yanez, Esq.
Milbank, LLP
1850 K Street, NW, Suite 1100
Washington, DC 20006
Tel: (202) 835-7500
Fax: (202) 263-7586
Email: aleblanc@milbank.com
mwyanez@milbank.com
- and -
Joshua M. Mester, Esq.
Jones Day
555 South Flower Street, Fiftieth Floor
Los Angeles, CA 90071
Tel: (213) 489-3939
Fax: (213) 243-2539
Email: jmester@jonesday.com
About Celsius Network
Celsius Network LLC -- http://www.celsius.network/-- is a
financial services company that generates revenue through
cryptocurrency trading, lending, and borrowing, as well as by
engaging in proprietary trading.
Celsius helps over a million customers worldwide to find the path
towards financial independence through a compounding yield service
and instant low-cost loans accessible via a web and mobile app.
Celsius has a blockchain-based fee-free platform where membership
provides access to curated financial services that are not
available through traditional financial institutions.
The Celsius Wallet claims to be one of the only online crypto
wallets designed to allow members to use coins as collateral to get
a loan in dollars, and in the future, to lend their crypto to earn
interest on deposited coins (when they're lent out).
Crypto lenders such as Celsius boomed during the COVID-19 pandemic,
drawing depositors with high interest rates and easy access to
loans rarely offered by traditional banks. But the lenders'
business model came under scrutiny after a sharp sell-off in the
crypto market spurred by the collapse of major tokens terraUSD and
luna in May 2022.
New Jersey-based Celsius froze withdrawals in June 2022, citing
"extreme" market conditions, cutting off access to savings for
individual investors and sending tremors through the crypto
market.
The list of major crypto firms that have filed for bankruptcy
protection in 2022 now includes Celsius Network, Three Arrows
Capital and Voyager Digital.
Celsius Network LLC and its subsidiaries sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No.
22-10964) on July 14, 2022. In the petition filed by CEO Alex
Mashinsky, the Debtor estimated assets and liabilities between $1
billion and $10 billion.
Kirkland & Ellis LLP is serving as legal counsel, Centerview
Partners is serving as financial advisor, and Alvarez & Marsal is
serving as restructuring advisor to Celsius.
Stretto, the claims agent, maintain the page
https://cases.stretto.com/celsius
CHICK LUMBER: Gets Court Nod to Use Cash Collateral Thru Dec 31
---------------------------------------------------------------
The U.S. Bankruptcy Court for the District of New Hampshire
authorized Chick Lumber, Inc. to use cash collateral on an interim
basis in accordance with the budget through December 31, 2022.
The Debtor may use and expend cash collateral to pay the costs and
expenses incurred by the Debtor in the ordinary course of business
to the extent provided for in the Budget up to $1,626,786 during
the period between October 1, 2022 and December 31, 2022.
The Debtor will make these Adequate Protection Payments on the last
day of each month: (i) $481.70 to Jeldwen, Inc.; (ii) $24.66 to BFG
Corporation (H2H NC Paint Tinter); (iii) $37.83 to GreatAmerica
Financial Services Corp.; (iv) $0.00 to Citizens One Auto Finance;
(v) $226.60 to Citizens One Auto Finance; (vi) $211.94 to Citizens
One Auto Finance; (vii) $39.52 to Wells Fargo Equipment Finance,
Inc. - Forklift; $63.25 to Wells Fargo Equipment Finance, Inc. –
Moffett Machine; (ix) $82.22 to Hitachi Capital Financial; and (x)
$1,197.93 to Citizens Financial Group, Inc., as the assignee of the
claim of American Express Bank, FSB.
If any payment due will not be timely made, the creditor entitled
to the payment will have the right to move the Court for an order
terminating the use of Cash Collateral by filing an affidavit of
default with the Court certifying (a) the amount of the payment
due, (b) the date such payment was due, and (c) the Debtor's
failure to make such payment, with service on the Debtor's counsel
and the United States Trustee.
Each Record Lienholder (including RBS Citizens on its own behalf
and as assignee of Amex FSB) is granted a replacement lien in, to
and on the Debtor's post-petition property of the same kinds and
types as the collateral in, to and on which it held or claims to
have held valid and enforceable, perfected liens on the Petition
Date as security for any loss or diminution in the value of the
collateral held by any such Record Lienholder on the Petition Date
which will have and enjoy the same priority as it had on the
Petition Date under applicable state law.
The replacement liens will be deemed valid and perfected
notwithstanding any requirements of non-bankruptcy law with respect
to perfection.
A further hearing on the matter is scheduled for December 21 at 11
a.m.
A copy of the order is available at https://bit.ly/3LDcPNi from
PacerMonitor.com.
About Chick Lumber
Chick Lumber, Inc. -- https://www.chicklumber.com/ -- is a dealer
of lumber, plywood, steel beams, engineered wood, trusses, steel
and asphalt roofing, windows, doors, siding, trim, stair parts, and
finish materials. It also offers drafting and design, installation,
delivery, outside sales, and plan reading and estimating services.
The Debtor sought Chapter 11 protection (Bankr. D.N.H. Case No.
19-11252) on Sept. 9, 2019, in Concord. In the petition signed by
Salvatore Massa, president, the Debtor disclosed between $1 million
and $10 million in both assets and liabilities.
Judge Bruce A. Harwood oversees the case.
William S. Gannon PLLC is the Debtor's legal counsel.
The Office of the U.S. Trustee appointed a committee of unsecured
creditors on Oct. 3, 2019. The Committee is represented by
Goldstein & McClintock, LLLP as its legal counsel.
CHILLKING CHILLERs: Seeks Cash Collateral Access
------------------------------------------------
Chillking Chillers, Inc. 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.
Supply chain disruption caused by the COVID-19 pandemic have made
it difficult for the Debtor to obtain the components necessary to
fulfill its orders. In order to cope with cash flow shortages
brought on by delays in completing orders and receiving payments,
the Debtor borrowed money from two merchant cash advance lenders.
The terms required by the MCA lenders were very onerous and
strangled the Debtor's ability to continue operating.
The parties that asserted liens on the Debtor's collateral are Bank
of the West, U.S. Small Business Administration, Corporation
Service Corporation as Representative (WebBank), and Corporation
Service Corporation as Representative (Kalmata Capital Group,
LLC).
In addition to those liens, the Debtor has factored certain of its
accounts receivable with First National Bank of Bastrop. The Debtor
retains a reversionary interest in the factored receivables.
With respect to the Debtor's reversionary interest in factored
receivables and non-factored receivables, the U.S. Small Business
Administration has the first lien. The Debtor believes that the
junior lienholders, WebBank (also known as Can Capital) and Kalmata
Capital Group, are fully unsecured.
The Debtor proposes to provide adequate protection to the parties
with an interest in cash collateral.
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 and will maintain insurance upon its assets.
The Debtor also requests permission to pay its usual and customary
operating expenses of the same type and approximate amounts set
forth on its budget.
A copy of the motion and the Debtor's 4-week budget is available at
https://bit.ly/3BBjJiz from PacerMonitor.com.
The budget provides for total expenses, on a weekly basis, as
follows:
$19,118 for Week 1;
$48,107 for Week 2;
$11,184 for Week 3; and
$14,274 for Week 4.
About Chillking Chillers, Inc.
Chillking Chillers, Inc. manufactures water chillers and other
related products. It was formed in 2009. Its business is located in
Bastrop, Texas. The Debtor sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No. 22-10594-hcm)
on September 11, 2022. In the petition signed by Patrick King,
president, the Debtor disclosed up to $1 million in liabilities.
Stephen W. Sather, Esq., at Barron & Newburger, P.C. is the
Debtor's counsel.
CITY LIVING KC LLC: Commences Subchapter V Case
-----------------------------------------------
City Living KC LLC, which owns, rents, and sells real estate, has
sought bankruptcy protection in Missouri.
According to court filings, City Living KC LLC estimates debt of
less than $1 million and between 1 and 49 creditors. The petition
states that funds will be available to unsecured creditors.
Asset Bridge Capital, LLC and PS Funding, Inc. have alleged
perfected security interest in cash, cash equivalents, and accounts
generated by Debtor's business.
Holders of unsecured debt are:
i Kelly Andrews
ii. Lavetta J. Cullars
iii. Lucille Clark-Autry
iv. Rick Ciantar
About City Living KC LLC
City Living KC LLC -- https://citylivingkc.business.site/ -- is a
limited liability company in Missouri. It owns, rents, and sells
real estate.
City Living KC LLC filed a petition for relief under Subchapter V
of Chapter 11 of the Bankruptcy Code (Bankr. W.D. Miss. Case No.
22-41170) on September 20, 2022. In the petition filed by Quashena
Wallace, as owner, the Debtor reported assets between $1 million
and $10 million and estimated liabilities between $500,000 and $1
million.
Robbin L. Messerli of Prairie Village, KS 66208-2618 has been
appointed as Subchapter V trustee.
The Debtor is represented by Colin N. Gotham of Evans & Mullinix,
P.A.
CLARUS THERAPEUTICS: Sets Bidding Procedures for Sale of All Assets
-------------------------------------------------------------------
Clarus Therapeutics Holdings, Inc., and Clarus Therapeutics, Inc.,
ask the U.S. Bankruptcy Court for the District of Delaware to
authorize the bidding procedures in connection with the auction
sale of all, substantially all, or portion of their assets.
The Debtors filed these Chapter 11 Cases after obtaining the
support from the Indenture Trustee and the Noteholders for an
in-court restructuring strategy that contemplates their
continuation of their robust prepetition sale and marketing efforts
through a court-approved bidding and auction process designed to
foster competitive bidding and maximize the value of their estates
for their stakeholders.
In April 2022, a Special Committee appointed by the Board of
Directors of Debtors Clarus Therapeutics Holdings, Inc., on behalf
of the Debtors, retained Raymond James as their investment banker
to conduct a marketing process to explore opportunities for
strategic transactions. Despite having several promising
opportunities, the Debtors were unable to reach agreement with any
of the prospective purchasers on the terms of an actionable
out-of-court transaction. However, they continued their marketing
efforts and in the period immediately preceding the Petition Date,
Raymond James reengaged with all parties who had conducted
substantial diligence to discuss their interest in serving as a
stalking horse bidder.
The Debtors believe strongly that a value-maximizing transaction
can be achieved expeditiously through a sale under section 363 of
the Bankruptcy Code. In order to advance these Chapter 11 Cases
toward their ultimate goal -- a going concern transaction -- the
Debtors, in consultation with the Noteholders, have designed the
Bidding Procedures to maximize the likelihood of competitive
participation in the Sale while maintaining optionality for the
Debtors and their stakeholders.
The Debtors believe that approval of the Bidding Procedures is
necessary to ensure a full, fair and transparent sale process that
will maximize the value of the Assets. Accordingly, they request
that the Court grants the Motion and enters:
(a) the Bidding Procedures Order, (i) approving the Bidding
Procedures, (ii) authorizing the Debtors to designate a Stalking
Horse Bidder and provide Bid Protections in accordance with the
Stalking Horse Designation Procedures, (iii) scheduling an Auction
and a Sale Hearing, (iv) approving the Sale Notice, (v) authorizing
the Assumption and Assignment Procedures, (vi) approving the form
and manner of notice to each relevant non-debtor counterparty to a
Contract of (A) the Debtors’ calculation of Cure Costs and (B)
the Assumption and Assignment Notice, and (vii) granting related
relief; and
(b) the Sale Order, (i) authorizing the sale of the Assets
free and clear of all liens, claims, interests, and encumbrances,
except certain assumed liabilities and permitted encumbrances as
determined by the Debtors and the Successful Bidder, with liens to
attach to the proceeds of the Sale (subject to the terms of the
Cash Collateral Order); (ii) authorizing the assumption and
assignment of certain Contracts in connection with the Sale; and
(iii) granting related relief.
As part of their Bidding Procedures, the Debtors seek authority,
subject to the terms of the Bidding Procedures Order, to designate
a stalking horse bid, pursuant to the Stalking Horse Designation
Procedure, for any or all of their Assets and, to enter into a
Stalking Horse Agreement with a potential Stalking Horse Bidder.
They propose to designate a Stalking Horse Bidder and enter into a
Stalking Horse Agreement no later than Sept. 30, 2022, at 4:00 p.m.
(ET), which deadline may be extended by the Debtors.
Pursuant to the Bidding Procedures, upon the designation of a
Stalking Horse Bidder, the Debtors are requesting authority to
award a Stalking Horse Bidder with incentives in the form of a
break-up fee in an amount not to exceed 3% of an applicable
Qualified Bid and reimbursement of documented, actual, and
necessary expenses incurred by the Stalking Horse Bidder, in
connection with submitting its Qualified Bid, in an amount not to
exceed $400,000 ("Bid Protections"). Likewise, if the Court enters
the Stalking Horse Order, the Debtors will provide notice of entry
of the Stalking Horse Order on the Sale Notice Parties and any
Prospective Bidder.
The salient terms of the Bidding Procedures are:
a. Bid Deadline: Oct. 10, 2022, at 4:00 p.m. (ET)
b. Initial Bid: If a Stalking Horse Bidder has been
designated, each bid that is not a Stalking Horse Bid must have a
value to the Debtors that is greater than or equal to the sum of
the value offered under the Stalking Horse Agreement, plus (a) the
amount of the Bid Protections and (b) the $250,000.
c. Deposit: 10% of the proposed purchase price for the Assets
to deposited no later than Oct. 11, 2022 at 3:00 p.m. (ET)
d. Auction: The Auction, if required, will be conducted on
Oct. 12, 2022, at 10:00 a.m. (ET), at either (i) at the offices of
Raymond James & Associates, Inc., 320 Park Avenue, Floor 10 New
York, NY 10022, or (ii) virtually or at such other date, time or
location as designated by the Debtors, after consulting with the
Consultation Parties.
e. Bid Increments: $250,000
f. Sale Hearing: Oct. 18, 2022, subject to the availability of
the Court
g. Sale Objection Deadline: Oct. 11, 2022 at 4:00 p.m. (ET)
h. Closing: No later than Oct. 27, 2022
i. Credit Bidding: The Indenture Trustee may credit bid the
outstanding Prepetition Obligations.
Within two business days after entry of the Bidding Procedures
Order, or as soon as reasonably practicable thereafter, the Debtors
will serve on the Sale Notice Parties and cause to be published on
the Stretto Website the Sale Notice.
In connection with the Sale, the Debtors likely will seek to assume
and assign to the Successful Bidder (or its designated assignee(s))
one or more Contracts. Accordingly, they seek approval of the
proposed Assumption and Assignment Procedures. Two business days
after the entry of the Bidding Procedures Order, the Debtors will
file with the Court and serve on each Counterparty to a Contract
that may be assumed in connection with any Sale an Assumption and
Assignment Notice. The Cure Objection Deadline is Oct. 11, 2022, at
4:00 p.m. (ET).
The Debtors request that the Court authorizes the sale of the
Assets free and clear of any liens, claims, interests and
encumbrances.
Pursuant to Bankruptcy Rules 6004(h) and 6006(d), they seek a
waiver of any stay of the effectiveness of the Bidding Procedures
Order, any Sale Order, any Stalking Horse Order, any order
authorizing the assumption or assumption and assignment of a
Contract in connection with a Sale, and any other order entered by
the Court in connection with the Sale. Given their precarious
financial condition and limited cash runway, the relief requested
should be granted and effective as soon as practicable. Any delay
in the Sale Process could jeopardize the Debtors’ chapter 11
strategy and the ability of the Debtors to consummate a
value-maximizing transaction.
A copy of the Bidding Procedures is available for free at
https://tinyurl.com/bd5y2jux from PacerMonitor.com free of charge.
About Clarus Therapeutics Holdings
Clarus Therapeutics Holdings, Inc. and Clarus Therapeutics, Inc.
sought protection under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. D. Del. Lead Case No. 22-10845) on Sept. 5, 2022. Lawrence
R. Perkins, chief restructuring officer, signed the petitions.
At the time of the filing, each of the Debtors listed $50 million
to $100 million in both assets and liabilities.
Judge Mary F. Walrath oversees the cases.
The Debtors tapped Goodwin Procter, LLP as bankruptcy counsel;
Potter Anderson & Corroon, LLP as Delaware and conflicts counsel;
SierraConstellation Partners, LLC as restructuring advisor; and
Raymond James & Associates, Inc. as investment banker. Stretto is
the claims and noticing agent.
COLONIAL GATE: Wins Access to Cash Collateral Thru Oct 19
---------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
authorized Colonial Gate Gardens LLC to use cash collateral on an
interim basis pursuant to the budget, in an amount up to $126,500,
until the earliest of (i) October 19, 2022; (ii) the entry of a
final order or a further interim order granting the Debtor
continued access to cash collateral; or (iii) the occurrence of a
Termination Event.
Each of these situations constitutes a Termination Event:
* The Chapter 11 case has been dismissed or converted to a
Chapter 7 case under the Bankruptcy Code, or there will have been
appointed in the Chapter 11 case, a trustee or an examiner with
expanded powers beyond the authority to investigate particular
activities of the Debtor;
* The Debtor files a motion seeking to modify, vacate, stay,
supplement or amend the terms of this Interim Order without the
prior written consent of any Secured Party;
* The Fifth Interim Order is modified, vacated, stayed,
supplemented, reversed, or is for any reason not binding on the
Debtor, without the prior written consent of a Secured Party;
* The Debtor fails to perform, in any material respect, any of
the terms, provisions, conditions, covenants, or obligation under
the Second Interim Order;
* The Debtor expends more than 110% of the Budget, unless caused
by an increase in business by the Debtor; and
* There is at any time a material inaccuracy in any financial
report or certification provided by the Debtor to Wilmington
Trust.
Wilmington Trust, National Association, as Trustee for the Benefit
of the Holders of CoreVest American Finance 2017-1 Trust Mortgage
Pass-Through Certificate, has an alleged first priority mortgage on
the Debtor's Properties as well as a first lien on the cash
collateral.
Wilmington asserts that it is owed by the Debtor, as of the
Petition Date, the approximate amount of $5,657,906.
As adequate protection for any diminution in the value of
Wilmington's interest in its collateral, Wilmington will receive
(i) replacement liens on all property of the Debtor and its estate,
and (ii) adequate protection to the extent required by the
pre-petition loan documents to the same extent and validity as its
pre-petition liens. The Debtor will also make adequate protection
payments to Wilmington at the non-default contract rate amounting
to $20,892 pursuant to pre-petition loan documents.
The Adequate Protection Liens will be subject to the Carve-out
consisting of (i) payment of fees due to the Office of the United
States Trustee; and (ii) amounts allowed by the Court as fees and
expenses of a trustee appointed under Section 726(b) of the
Bankruptcy Code for up to $7,500.
The adjourned hearing to consider entry of a final order is set for
September 28 at 2 p.m.
A copy of the order and the Debtor's budget is available for free
at https://bit.ly/3BXweoP from PacerMonitor.com.
The budget provides for total expenses, on a weekly basis, as
follows:
$8,250 for the week ending September 20, 2022;
$1,000 for the week ending September 27, 2022;
$5,120 for the week ending October 4, 2022;
$5,594 for the week ending October 11, 2022; and
$8,500 for the week ending October 18, 2022.
About Colonial Gate Gardens LLC
Colonial Gate Gardens LLC is a limited liability company, formed
and existing under the laws of the State of New York, with its
principal office located at 45 Washington Ave, Spring Valley, New
York 10977. Colonial Gate Gardens is engaged in the real estate
investment business by purchasing single-family homes and or
condominium units, renovating them and then leasing them to tenants
in exchange for rent.
Colonial Gate Gardens sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 21-22265) on May 6,
2021. In the petition signed by Yitzchok Loeffler, managing
director, the Debtor disclosed up to $10 million in both assets and
liabilities.
Judge Sean H. Lane oversees the case.
Avrum J. Rosen, Esq., at Law Office of Avrum J. Rosen, PLLC, is the
Debtor's counsel.
CREDITO REAL SAB: Corporate Lawyer Says Liquidation Isn't Suspended
-------------------------------------------------------------------
Jeremy Hill of Bloomberg News reports that a recent appeals court
ruling in Mexico didn't suspend the court-supervised liquidation of
Credito Real SAB, a lawyer for the company said US bankruptcy court
Monday, September 19, 2022.
The company disagrees with a group of creditors which has
interpreted the ruling to mean the liquidation is on hold, Jason
Zakia of White & Case said on behalf of Credito Real.
The company will file papers in U.S. bankruptcy court explaining
its position, Zakia told Judge John Dorsey in a hearing held by
videoconference.
About Credito Real SAB
Credito Real SAB de CV SOFOM ENR is a Mexico-based company that
provides consumer financing. Credito is Mexico's biggest payroll
lender and second largest non-bank lender after Real Unifin.
Credito Real provides loans, either by providing direct financing
to consumers or by establishing financing programs with consumer
financing dealers that sell to Credito Real the collection rights
from consumer financing products. It also provides financing
directly to individuals that are employed by corporations with
payroll deduction agreements with consumer financing dealers
authorized by Credito Real. Credito Real operates through a number
of subsidiaries, including AFS Acceptance LLC.
Three alleged creditors signed a petition to send Credito Real to
Chapter 11 bankruptcy on June 22, 2022 (Bankr. S.D.N.Y. Case No.
22-10842). Institutional Multiple Investment Fund LLC, of Boston,
Massachusetts; Banco Monex, S.A., of Mexico, and Solitaire Fund, of
Liechtenstein, who claim to own an aggregate $8 million of
unsecured bond debt, signed the involuntary Chapter 11 petition.
David H. Botter, Esq., at Akin Gump Strauss Hauer & Feld LLP is
advising the three bondholders.
Despite efforts by bondholders to force the company to pursue a
Chapter 11 restructuring in the U.S., the Debtor opted to pursue
proceedings in Mexico instead. On June 28, 2022, Angel Francisco
Romanos Berrondo, one of the Debtor's shareholders and the former
CEO of Credito Real, filed a petition, in his capacity as a
shareholder, with the Mexican Court seeking to commence the Mexican
Liquidation Proceeding.
On June 30, 2022, the Mexican Court entered an order commencing the
dissolution and liquidation proceedings for the Company and
appointing Mr. Fernando Alonso-de-Florida Rivero as the Mexican
Liquidator.
The liquidator for Credito Real filed a Chapter 15 bankruptcy
petition (Bankr. D. Del. Case No. 22-10630) on July 14, 2022, to
seek U.S. recognition of the Mexican proceedings. The petition was
signed by Robert Wagstaff, the foreign representative of the
liquidator. Richards, Layton & Finger, P.A., led by John Henry
Knight, is counsel in the U.S. case.
CROWN COMMERCIAL: Court OKs Interim Cash Collateral Access
----------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois,
Eastern Division, authorized Crown Commercial Real Estate and
Development, LLC to use cash collateral on an interim basis in
accordance with the budget.
The Debtor requires the use of cash collateral to continue
operating its business enterprise and successfully reorganize its
operations.
The Debtor and Rialto Capital Advisors, LLC, have agreed to the
terms of the sixth interim order on cash collateral access. Rialto
is the Special Servicer and Attorney-in-Fact for secured creditor
U.S. Bank National Association, as Trustee for the benefit of the
holders of Morgan Stanley Capital I Inc., Commercial Mortgage
Pass-Through Certificates, Series 2012-05.
The Debtor stipulates and agrees that it will continue to operate
its business and pay expenses only in accordance with the terms of
the interim order from September 16 through and including October
13, 2022.
Bank of America, N.A. made a loan to the Debtor in the original
principal amount of $27,450,000, pursuant to a loan agreement dated
June 26, 2012. The Loan is evidenced by a promissory note dated
June 26, 2012, in the original principal amount of $27,450,000 made
by the Debtor and payable to the order of the Original Lender.
To secure repayment of the Loan, the Debtor executed and delivered
to the Original Lender a Mortgage, Assignment of Leases and Rents,
and Security Agreement dated as of June 26, 2012, encumbering the
Debtor's real property, a real property improved by a shopping
center commonly known as Chatham Village Square Shopping Center,
located at 87th Street and Cottage Grove Avenue, Chicago, IL 60619,
recorded with the Cook County Recorder of Deeds on July 20, 2012,
as document number 1220213054.
As further security for the Loan, the Debtor granted the Original
Lender a lien on all of its personal assets. On June 29, 2012, the
Original Lender perfected its security interest in the Debtor's
assets by filing a UCC Financing Statement with the Illinois
Secretary of State identifying Crown Commercial as the debtor and
the Original Lender as the secured party.
On July 2, 2012, the Original Lender negotiated the Note to the
order of Rialto pursuant to an allonge and delivered the Note with
the Allonge to Rialto.
On August 8, 2012, the Original Lender assigned the Mortgage to
Morgan Stanley Capital I Inc., Commercial Mortgage Pass-Through
Certificates, Series 2012-05, by executing and delivering to the
Lender an Assignment of Mortgage, Assignment of Leases and Rents,
and Security Agreement, which was recorded with the Cook County
Recorder of Deeds on September 10, 2012, as document number
1225408405.
On August 30, 2012, Rialto perfected its security interest in the
Debtor's assets by filing a UCC Financing Statement Amendment with
the Illinois Secretary of State identifying the Debtor as the
debtor and the Lender as the secured party, as subsequently
continued by filing of those UCC Financing Statement Amendments on
September 6, 2012, January 11, 2017, and January 18, 2022.
As of the Petition Date, the Debtor owed Rialto $22,874,831.
The Debtor is directed to use cash collateral only to pay actual,
ordinary, and necessary operating expenses for the purpose of
operating its business as debtor-in-possession. The use of Rialto's
cash collateral to pay any extraordinary expense in excess of
actual, ordinary, and necessary operating expenses will require the
prior written approval of the Lender, or further Court order, upon
three days' notice.
The Debtor will ensure the payment of all personal property taxes,
real property taxes, sales taxes, payroll taxes, insurance,
maintenance expenses, and payroll/wages in connection with
preserving the Property coming due during the Interim Period.
As further adequate protection, the Debtor will pay Rialto, on or
before October 7, 2022, one monthly interest payment in the amount
of $83,144. As additional adequate protection for the use of cash
collateral, the Debtor agreed to pay Rialto $20,000 per week to be
applied to reduce the amount of real estate taxes advanced by the
Lender. Specifically, the Debtor agreed to pay Rialto:
$20,000 on or before September 16, 2022,
$20,000 on or before September 23, 2022, and
$20,000 on or before on September 30, 2022.
These events constitute an "Event of Default:"
a. The Debtor's failure to maintain appropriate insurance for
the Collateral;
b. Except for disclosed payments made following the Petition
Date through the date of the Order, if the Debtor pays obligations
not showing on the Budget without the Lender's prior written
consent or further Court order or exceeds the Budget amounts by
more than 15%;
c. The Debtor fails to provide, when due, any reports or
accounting information reasonably required by the Agreed Interim
Order;
d. Any termination by the Court of the Debtor's use of cash
collateral; or
e. Failure to make the Adequate Protection Payment when due.
A further interim hearing on the matter is scheduled for October 12
at 10 a.m.
A copy of the order and the Debtor's budget is available at
https://bit.ly/3eRJAdc from PacerMonitor.com.
The budget provides for total expenses, on a weekly basis, as
follows:
$25,000 for the week ending September 22, 2022;
$27,500 for the week ending September 29, 2022;
$31,500 for the week ending October 6, 2022; and
$114,944 for the week ending October 13, 2022.
About Crown Commercial
Real Estate and Development, LLC
Crown Commercial Real Estate and Development, LLC operates
shopping center, located at 87th Street and Cottage Grove Avenue,
Chicago, IL 60619. The Property consists of a shopping center owned
and operated for 25 years by the Debtor.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ill. Case No. 22-05113) on May 3,
2022. In the petition signed by Musa P. Tadro, manager, the Debtor
disclosed up to $50,000 in assets and up to $50 million in
liabilities.
The Law Offices of Konstantine Sparagis is the Debtor's counsel.
Judge Janet S. Baer oversees the case.
CSK PROPERTIES: $400K Sale of Spartanburg Property to PGSW Approved
-------------------------------------------------------------------
The U.S. Bankruptcy Court for the District of South Carolina
authorized CSK Properties, LLC's sale of the commercial property
located at 114 Southport Road, in Spartanburg, South Carolina
29306, TMS#6-21-14-060.00, to PGSW Properties, LLC, for $400,000.
The sale is free and clear of liens. The liens claimed by Regions
Bank and Spartanburg Tax Collector will be paid upon the sale of
said property.
The stay provided by Fed. R. Bankr. P. 6004 does not apply to the
sale.
About CSK Properties
CSK Properties, LLC filed a Chapter 11 bankruptcy petition (Bankr.
D.S.C. Case No. 22-00292) on Feb. 6, 2022, disclosing as much as
$1
million in both assets and liabilities. Judge Helen E. Burris
oversee the case.
The Debtor tapped Robert Pohl, Esq., at Pohl, P.A. as legal
counsel
and Bharti Mathur, CPA of Upstate CPAs as accountant.
CVFI-444 S FLOWER: Partnership Interests Up for Nov. 18 Auction
---------------------------------------------------------------
In accordance with applicable provisions of the Uniform Commercial
Code as enacted in New York, Oaktree Real Estate Debt II OLE LLC
("secured party") will sell all of the partnership interests held
by CVFI-444 S Flower Mezz LP and CVFI-444 S Flower GP LLC in and to
CVFI-444 S Flower LP ("pledged entity") to the highest qualified
bidder at a public sale on Nov. 18, 2022, at 10:00 a.m. (Pacific
Standard Time)(Los Angeles), both in person and remotely from the
Offices of Paul Hastings LLP, 515 South Flower Street 25th Floor,
Los Angeles, California 90071.
Remote log-in credentials will be provided to registered bidders.
The Secured Party's understanding is that the principal assets of
CVFI-444 S Flower LP is the parcel of real property commonly known
as 444 South Flower Street, Los Angeles, California.
The sale will be conducted by Mannion Auctions LLC c/o Matthew D.
Mannion.
Interested parties who intend to bid on the collateral must contact
Brock Cannon of Newmark Knight Frank at (212) 372-2066,
brock.cannon@nmrk.com, to receive the terms of public sale and
bidding instructions.
D & L REAL ESTATE: Unsecureds to be Paid in Full in Plan
--------------------------------------------------------
D & L Real Estate Enterprises, LLC filed with the U.S. Bankruptcy
Court for the Central District of California a Disclosure Statement
describing Chapter 11 Plan of Reorganization dated September 22,
2022.
The Debtor is a California limited liability company. Dan Ketelaars
and Lonnie Landers are the managing and sole members. The Debtor
has no employees.
The Debtor currently owns a commercial building built out for
restaurant use located at 424 S. Indian Canyon Drive, Palm Springs,
CA 92262 (the "Building"). The Debtor is currently leasing the
building to DANLON, Inc., dba Wangs in the Desert ("DANLON") to
operate a restaurant. DANLON is owned and operated by Dan Ketelaars
and Lonnie Landers.
The Debtor was originally formed in 2003 as D & L REAL ESTATE
ENTERPRISES, a California general partnership, to purchase the
Building and assign the lease agreement for the land from Scott P.
Timberlake. The assignment was approved by the BIA on June 25,
2003.
DANLON was forced to close the restaurant on or about March 30,
2020, due to the worldwide Covid-19 pandemic; DANLON was therefore
unable to make payments to the Debtor and the Landlord. Operations
resumed on November 4, 2021 but DANLON has struggled since then to
regain customers and market share; it has not resumed payments to
the Debtor or the Landlord.
This case was filed so that the Debtor can relist the Building and
land lease for sale. To that end, the Debtor has employed Robert
Hughes of Hughes Properties, Inc. as its real estate listing agent
and broker. The Building and land lease will be listed for sale at
$895,000, a competitive and aggressive listing price which will
encourage interest in the offering, but will still enable the
Debtor to pay all of the debts of the estate in full.
Class 1 consists of the Secured Claim of Riverside County Treasurer
and Tax Collector. Claimant holds a tax lien in the amount of
approximately $78,438 (per POC No. 2). This claim will be paid in
full from the sale of the Debtor's Building, directly through
escrow. The claim will accrue interest at 18% per annum (the
interest rate to be paid to the County is determined by 11 U.S.C
§511) until paid in full.
Class 3 consists of General Unsecured Claims. In the present case,
the Debtor estimates that Class 3 general unsecured claims total
approximately $346,858. These claims will be paid in full without
interest by the Effective Date. This Class is Unimpaired.
Class 4 consists of Interest Holders. The Debtor's owners will
retain their ownership interest in the Debtor.
The Debtor intends to fund the Plan from the sale of its Building
and expects to secure a buyer within the next 90-day period.
A full-text copy of the Disclosure Statement dated September 22,
2022, is available at https://bit.ly/3fo7Y6w from PacerMonitor.com
at no charge.
Attorneys for Debtor:
Roksana D. Moradi-Brovia, Esq.
Matthew D. Resnik, Esq.
RHM Law LLP
17609 Ventura Coulevard, Suite 314
Encino, CA 91316
Telephone: (213) 572-0800
Facsimile: (818) 855-7013
Email: matt@rhmfirm.com
About D & L Real Estate
Enterprises
D & L Real Estate Enterprises, LLC, a real estate company, filed a
petition for relief under Subchapter V of Chapter 11 of the
Bankruptcy Code (Bankr. C.D. Calif. Case No. 22-12412) on June 25,
2022, listing up to $1 million in assets and up to $500,000 in
liabilities. Arturo Cisneros serves as Subchapter V trustee.
Matthew D. Resnik, Esq., at RHM Law LLP is the Debtor's counsel.
DOUGLAS B. EVANS: $30K Sale of 2003 Porsche 996 to Glomstad Okayed
------------------------------------------------------------------
Judge Christopher M. Alston of the U.S. Bankruptcy Court for the
Western District of Washington authorized Douglas B. Evans and
Marica G. Evans to sell their 2003 Porsche 996 with Vehicle
Identification Number WP0CA29993S651207 to Eric Glomstad for
$30,000, pursuant to the terms of their confirmed Second Amended
Plan of Reorganization.
The Order is effective immediately and the 14-day stay imposed by
Fed. R. Bankr. Proc. 6004(h) is waived.
Counsel for Debtors:
Jason E. Wax
TURNSTONE LAW GROUP PLLC
2033 6the Avenue, Suite 600
Seattle, WA 98121
Telephone: (206) 745-0570
The bankruptcy case is In re: Douglas B. Evans and Marica G. Evans,
Case No. 22-10255-CMA (Bankr. W.D. Wash.).
ECHELON CONSTRUCTION: Seeks Cash Collateral Access
--------------------------------------------------
Echelon Construction and Maintenance LLC asks the U.S. Bankruptcy
Court for the Northern District of Texas, Dallas Division, for
authority to use cash collateral in accordance with the budget,
with a 5% variance.
A search in the Texas Secretary of State shows that allegedly
secured positions are held by Capitalplus Construction Services,
LLC, CIT Bank, NA (Filing No. 21-0042646883, filed by Secured
Lender Solutions), Alliance Funding Group (Filing No. 21-0044031651
filed by Corporation Service Company), the U.S. Small Business
Administration, CT Corporation System (Filing No. 22-0018015625),
Capitalplus Construction Services, LLC, CHTD Company, and Vernon
Capital Group, LLC (Filing No. 22-0041590679, filed by Corporation
Service Company).
A copy of the motion is available at https://bit.ly/3xxHaqA from
PacerMonitor.com.
A copy of the budget is available at https://bit.ly/3DJRXlB from
PacerMonitor.com.
The Debtor projects $2,000,000 in cash receipts and $1,928,432 in
cash disbursements for 30 days.
About Echelon Construction and Maintenance LLC
Echelon Construction and Maintenance LLC provides pre-construction,
construction management, design-build, interiors, ground up, and
program rollout services. The Debtor sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No.
22-31669) on September 12, 2022. In the petition signed by Aaron
Kyle Wyatt, managing director, the Debtor disclosed up to $100,000
in assets and up to $10 million in liabilities.
Judge Michelle V. Larson oversees the case.
Robert C. Lane, Esq., at The Lane Law Firm, is the Debtor's
counsel.
FELIX QUIROZ, JR: Selling Midland County Subdivision Lot for $80K
-----------------------------------------------------------------
Felix Quiroz, Jr., and Maria E. Quiroz ask the U.S. Bankruptcy
Court for the Western District of Texas to authorize them to sell
their Subdivision Lot described as Lot 1, Block 13, El Montecito
Estates, according to the map or plat recorded in Cabinet M, Page
122 of the Plat Records of Midland County, Texas, to Ronald Peraza
and Teresa Leyva for $80,190, cash.
Objections, if any, must be filed 14 days from the date of
service.
The Court has already ordered that, subject to the terms of
adequate protection contained in the Order, the Debtors may sell
subdivision lots, in the ordinary course of business, and thereby
use the cash collateral of the United States Internal Revenue
Service, Stewart Title Insurance Co., and Caterpillar Financial
Services Corp., as well as the cash collateral of the ad valorem
tax collector for the Property, be it Midland County, Texas or the
City of Midland, Texas.
The Debtors received the Earnest Money Contract from the Buyers.
The sale is for cash; the realtors' commissions are at or within 6%
of the sale price, and all other conditions of the Final Cash
Collateral Order also apply to the sale unless otherwise noted.
The cash collateral in the case consists of the estate's unsold
lots in El Montecito Estates, an Addition to the County of Midland,
Texas. There are approximately 25 unsold lots, each containing one
acre or more. The Debtors intend to sell the lots in these
Subchapter V proceedings.
The Debtors ask for authority to close upon a "back-up contract,"
if the proposed sale to the Buyers does not close within 30 days of
the date of the Order approving this contract. Any "back-up
contract" must be for at least 95% of $90,180 and must close in
cash.
From the sale of this lot, the title company which closes the sale
is to pay the following expenses and lien reductions and make
further deposits of the lot proceeds:
a. A realtor's commission, not to exceed 6% of the sale
price;
b. Costs of a title policy (but only if the earnest money
contract allocates the policy cost to the Seller), escrow fee(s),
tax certificates, and other routine seller's expenses of closing.
These are expected to be less than $4,000 for a single lot;
c. The accrued ad valorem taxes upon the lot being sold,
pro-rated to date of closing. These are expected to be less than
$2,500 per lot;
d. Reasonable attorney's fees and expenses of the Debtors'
Chapter 11 Subchapter V counsel E.P. Bud Kirk in a minimum amount
of at least $5,000 per lot. In View of the substantial work Mr.
Kirk has done on this case to date, with no pre-petition retainer,
he may apply the $5,000 to his fees and expenses immediately but
will report the services as well as the payment in his first
Interim Fee Application;
e. The title company closing the sale will pay $3,275 into the
Debtor-in-Possession account so that the Debtors may defray their
costs of living therefrom, up to $3,275 per month, within the
categories and amounts specified in their Domestic Budget;
f. The title company closing the sale will pay the IRS $50,000
from each lot sale, to release that lot from the federal tax
lien(s) thereon and reduce the balance of the federal tax lien(s),
for which the IRS has claimed a petition-date balance of
approximately $678,000. If this lot sells under a "back-up
contract," the release price for the IRS lien(s) will be the same
percentage of $50,000 that the back-up contract price bears to
$80,190.
g. On all sales, Stewart Title Co., holder of a deed of trust
lien note for a balance of approximately $104,000 upon the lots in
El Montecito Estates, will be paid $5,000 per lot to release that
lot from its deed of trust lien. But if the sale price is $90,000
or more for the lot, the release payment to Stewart Title Co. will
be $7,500.
h. The abstract of judgment held by Caterpillar against the
lots, balance now approximately $73,000, is to be paid $7,500 per
closing as the partial release price per lot, on all sales for
$90,000 or more per lot.
i. $2,500 out of this closing is to be paid into the trust
account of the Subchapter V Trustee Brad Odell, for application to
his fees and expenses in the case, once they are approved by the
Court.
j. $250 per closing is to be paid to the Texas Comptroller for
application to a judgment for $3,817.67 filed of record in Midland
County, Texas.
k. The anticipated expenses and release payments aggregate
$77,386. Id the above estimates for closing costs ($4,000) and ad
valorem taxes ($2,500) are inadequate, there is $2,884 in reserve
to cover them.
l. The balance of any remaining proceeds is to be paid into
the Debtor-in-Possession account. All disbursements therefrom,
other than the $3,275/mo. which the Debtors may draw down, will
require prior Court approval.
m. The Order, once filed in the Real Property Records along
with the deed to the lot being sold, will obviate the need for the
title company closing that sale to obtain partial releases from the
holders of the liens upon the lot(s) sold pursuant hereto.
n. The foregoing lien release amounts and sale expense amounts
are to be observed in each Section 363(b)/(f) sale motion brought
by the Debtors, unless exceptions are reasonable and necessary, for
good cause to be shown. Each Motion to Sell a lot will incorporate
by reference the Final Cash Collateral Order and any modifying
Order which may supplant it, but the reasonableness and necessity
of any partial release prices and sale expenses specified may be
questioned by any party in interest as part of any objection(s) to
a Section 363(b)/(f) Motion to Sell.
Premises considered, the Debtors pray that the subject sale of the
Property to the Buyers for $80,190 be approved, free and clear of
liens, and according to the terms described, including the
provisions for a back-up contract.
A copy of the Contract is available for free at
https://tinyurl.com/4a79fa3s from PacerMonitor.com free of charge.
Felix Quiroz, Jr. and Maria E. Quiroz sought Chapter 11 protection
(Bankr. W.D. Tex. Case No. 22-70058) on May 6, 2022. The Debtors
tapped E.P. Bud Kirk, Esq., as counsel.
FLAVIO ALMEIDA MARTINS: Brother Buying Jersey Dry Cows for $315K
----------------------------------------------------------------
Flavio Almeida Martins asks the U.S. Bankruptcy Court for the
Eastern District of California to authorize him to sell the 300
Jersey "Dry Cows" currently located at his Top Line Dairy West by
private sale to his brother, Christiano Martins, doing business as
Middle Lup Dairy in Nebraska, for $1,050/head, for a total sales
price of $315,000, free and clear of liens, subject to higher or
better bids.
The Debtor owns the following dairies:
a. Top Line Daig West located at 13891 Kent Avenue, Hanford,
CA, consisting of 665.52 acres, and currently listed at $9.5
million.
b. Top Line Daig East located at 180705 13th Avenue, Hanford,
CA, consisting of 601.9 acres, and currently listed at $7.5
million. This dairy is not currently operating.
c. Vaca Linda Daig; located at 14235 Kent Avenue, Hanford,
CA, consisting of 1300 acres, and currently listed at $12 million.
d. Pedro Daig, located in Stratford, CA, consisting of 244
acres, and currently listed at $1.5 million. This dairy is not
currently operating.
The Debtor has concluded that it is the best interests of the
Estate to sell the Dairies and, has listed them for sale with
Schuil & Associates. The Purchase offers and counter offers for
the Dairies are currently pending.
One of the prospective buyers, who has offered to purchase Top Line
Dairy West and Top Line Dairy East, has also offered to purchase
all of the Debtor's remaining mature milk and dry cows, rolling
stock, feed and the Debtor retains with Dairy Farmers of America
and Land C Lakes. It is anticipated that the sales of the Dairies
should close before the end of this year.
In addition to the Debtor's productive milking herd, there are
approximately 685 dry Jersey cows, which are in different milking
cycles, but are not currently productive. The Debtor believes that
the cost of maintaining the dry cows is approximately $2.30 per
head per day to maintain.
If the Debtor intended to operate the Dairies on a long term basis,
it might make economic sense to maintain the 685 dry Jersey cows to
replenish the milking herd. However, given the Debtor's plan to
sell the Dairies as quickly as possible, it is in the best
interests of the Estate to eliminate the daily cost of maintaining
the dry Jersey cows and to generate funds to pay down the secured
claim of Bank of the Sierra ("BOTS"), the senior secured creditor
on this collateral.
For the foregoing reasons, good cause exists to sell the 300 Dry
Cows. Sale of these assets will generate at least $315,000 which
can be used to pay down the blanket lien of BOTS and free up equity
in other assets for Western Milling, LLC ("WM") and unsecured
creditors.
The Debtor has determined that the best means to sell the 300 Dry
Cows is by private sale, but subject to higher or better bid,
rather than public action, since the sale described in the Motion
will not generate any expenses for transportation, auctioneer's
fees or other veterinary expenses typically associated with such a
sale. The Buyer will assume all costs of sale. In other words,
the Estate will receive 100% of the sale proceeds, which will in
turn be paid over to BOTS.
Furthermore, if the 300 Dry Cows are sold at auction, the dairy
community will know that the herd is "broken" and that knowledge
may devalue the Debtor's remaining herd when it is later sold.
In connection with the sale of the 300 Dry Cows, the Debtor will
prepare and file a report and return of sale as is required by FRBP
6004(f)(1).
Based upon a search of the records for the California Secretary of
State's Office, the Debtor believes that the following creditors
have consensual lien interests in the 300 Dry Cows in the following
order of priority:
a. BOTS: "Blanket" UCC-1 Financing Statement recorded on Aug.
14, 2015 (File. No. 15-7480372158); and continued on March 9, 2020
(File No. 20-77664702).
b. WM: "Blanket" UCC Financing Statement recorded on March
21, 2018 (File No. 18-7639478275).
The Debtor believes that all of the consensual liens on the 300 Dry
Cows are subject to a sale free and clear.
BOTS has consented to sale of the 300 Dry Cows provided the Buyer
wires the purchase price directly to it prior to the Buyer
accepting delivery of the 300 Dry Cows.
The Debtor expects that WM will consent to the sale of the 300 Dry
Cows by the time of hearing on the Motion, provided the Buyer wires
the purchase price directly to BOTS prior to the Buyer accepting
delivery of the 300 Dry Cows. Alternatively, WM's lien on the 300
Dry Cows is junior to BOTS's lien, which secures an approximate
total secured scheduled claims of approximately $28 million and is
therefore, the WM lien is subject to a bona fide dispute.
The Debtor believes that since the Dairies will be sold in the next
few months, and since it is economically not viable to maintain the
300 Dry Cows pending those sales, it is a sound exercise of his
business judgment to sell those animals at a private sale, but
subject the sale to higher and better bids at the time of hearing
on the Motion.
The Debtor requests the entry of an order authorizing him to sell
the 300 Dry Cows to Martins free and clear of liens at private sale
pursuant, subject to higher and better bids at the time of hearing
on the Motion; authorizing him to pay the net sale proceeds to BOTS
by bank wire prior to the Buyer accepting delivery of the 300 Dry
Cows on account of its secured claim; and for such other and
further relief as the Court deems proper.
About Flavio Almeida Martins
Flavio Almeida Martins sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. E.D. Calif. Case No. 22-10947) on June 1,
2022. Judge Rene Lastreto II oversees the case. Hagop T. Bedoyan,
Esq., is the Debtor's attorney.
FORTEM RESOURCES: $700K Sale of All Assets to Pimee Energy Approved
-------------------------------------------------------------------
Judge Natalie M. Cox of the U.S. Bankruptcy Court for the District
of Nevada authorized Fortem Resources Inc.'s bidding procedures in
connection with the sale of substantially all assets to Pimee
Energy Inc. for $700,000 cash, plus payment for all Cure Amounts,
less the Credit Bid.
A Sale Hearing was held on Sept. 2, 2022, at 9:30 a.m. (PST).
The Sale is free and clear of all Liens and/or Claims. All Liens
and/or Claims will attach solely to the proceeds of the Sale.
The Debtor is authorized and empowered to take any and all actions
necessary or appropriate to (i) consummate the Sale of the
Purchased Assets to the Buyer pursuant to and in accordance with
the terms and conditions of the Final APA, (ii) close the Sale as
contemplated in the Final APA and the Order, and (iii) execute and
deliver, perform under, consummate, implement and close fully the
Final APA, together with all additional instruments and documents
that may be reasonably necessary or desirable to implement the
Final APA and the Sale, or as may be reasonably necessary or
appropriate to the performance of the obligations as contemplated
by the Final APA and such other ancillary documents.
The Debtor is authorized and directed to assign the Assigned
Contracts to the Buyer free and clear of all Liens and Claims.
Notwithstanding the provisions of Bankruptcy Rule 6004 and
Bankruptcy Rule 6006 or any applicable provisions of the Local
Rules, the Order will not be stayed for 14 days after the entry
hereof, but will be effective and enforceable immediately upon
entry, and the 14-day stay provided in such rules is expressly
waived and will not apply. Time is of the essence in approving the
Sale, and the Debtor and the Buyer intend to, and are authorized
to, close the Sale as soon as practicable, but in no event later
than Oct. 1, 2022.
A copy of the Final APA is available for free at
https://tinyurl.com/ft3kr78z from PacerMonitor.com free of charge.
About Fortem Resources
Fortem Resources (TSXV:FTM, OTCQB:FTMR) is a Las Vegas-based
company engaged in the acquisition, exploration and development of
oil and gas properties.
Fortem Resources filed a petition under Chapter 11, Subchapter V
of
the Bankruptcy Code (Bankr. D. Nev. Case No. 21-14823) on Oct. 6,
2021, listing as much as $10 million in both assets and
liabilities. Edward Burr serves as Subchapter V trustee.
Judge Natalie M. Cox oversees the case.
Brett A. Axelrod, Esq., at Fox Rothschild LLP, Clark Wilson LLP,
and Michael Waldkirch & Company Inc. serve as the Debtor's
bankruptcy counsel, special counsel and accountant, respectively.
FREE SPEECH SYSTEMS: Can't Retain Attorneys for Chapter 11 Case
---------------------------------------------------------------
Alex Jones' podcast company, Free Speech Systems, can't retain
attorneys for Chapter 11 case. A Texas bankruptcy judge on
Tuesday, September 20, 2022, denied motions from Alex Jones'
podcast network Free Speech Systems LLC to retain bankruptcy
counsel and a chief restructuring officer, saying the two had
previously worked with other companies affiliated with Jones on
another bankruptcy without disclosing it.
Judge Christopher Lopez denied the Debtor's applications to hire
Schwartz Associates LLC's W. Marc Schwartz as CRO, and Shannon &
Lee LLP as bankruptcy co-counsel. The judge did approve the
Debtor's application to employ the Law Offices of Ray Battaglia,
PLLC as bankruptcy counsel.
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.
GABHALTAIS TEAGHLAIGH: Wins Cash Collateral Access Thru Dec 14
--------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Massachusetts
authorized Gabhaltais Teaghlaigh, LLC to use cash collateral on an
interim basis through the conclusion of a continued telephonic
hearing set for December 14, 2022 at 1 p.m.
The Court said the Debtor's use of cash collateral will be in
accordance with the supplemental budget and the funds derived from
the Lowell property will only be used to pay expenses of the
property.
No funds will be advanced on behalf of the Debtor without a motion
being filed that seeks authority for such advances, disclosing the
amounts and nature of any proposed advances.
The Debtor is directed to file (i) a revised forward-looking
budget; (ii) a reconciliation of budgeted amounts as compared with
actual cash receipts and disbursements on a line-item basis for the
month of November 2022; and (iii) a proposed form of order
regarding the continued use of cash collateral beyond the continued
hearing.
A copy of the order is available at https://bit.ly/3f7RWxu from
PacerMonitor.com.
About Gabhaltais Teaghlaigh
Gabhaltais Teaghlaigh, LLC sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D. Mass. Case No. 22-10839) on
June 15, 2022. In the petition filed by Virginia Hung, as member,
Gabaltais Teaghlaigh LLC listed under $50,000 in both assets and
liabilities.
The case is assigned to Judge Christopher J. Panos.
David G. Baker, Esq., at Baker Law Offices is the Debtor's
counsel.
GT REAL ESTATE: Bankruptcy Plan Heads to Creditor Vote
------------------------------------------------------
Alex Wolf of Bloomberg Law reports that Carolina Panthers owner
David Tepper's bankrupt real estate development firm won approval
to solicit creditor votes on a plan tied to the company's canceled
project to build a new practice facility and headquarters for the
NFL team.
GT Real Estate Holdings LLC's plan to repay contractors and
creditors by creating a $60 million settlement trust and restore
the unfinished construction site in Rock Hill, South Carolina can
proceed to a creditor vote, Judge Karen B. Owens of the US
Bankruptcy Court for the District of Delaware ruled during a
hearing Monday, September 19, 2022.
About GT Real Estate Holdings
GT Real Estate Holdings is a real estate company owned by David
Tepper. It was created to own and develop a mixed-use,
pedestrian-friendly community, sports, and entertainment venue,
that would also include a new headquarters and practice facility
for the Carolina Panthers, a National Football League team,
situated on a 234-acre site located in Rock Hill, South Carolina.
The company suspended further development of the Project in March
2022.
GT Real Estate Holdings sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Del. Case No. 22-10505) on June 2,
2022. In the petition filed by Jonathan Hickman, as chief
restructuring officer, the Debtor reports estimated assets and
liabilities between $100 million and $500 million each.
The Hon. Karen B. Owens is the case judge.
The Debtor tapped White & Case LLP as restructuring counsel; Farnan
LLP, as Delaware counsel; and Alvarez & Marsal as financial
advisor. Kroll Restructuring Administration LLC is the claims
agent.
HERTZ CORP: Sued in Delaware for False Arrest Claims
----------------------------------------------------
Leslie A. Pappas of Law360 reports that Six customers, who allege
they rented cars from Hertz and were later detained at gunpoint
because the rental agency falsely reported the cars stolen, sued
the company in Delaware Superior Court on Tuesday, September 20,
2022, saying its prebankruptcy problems have not been fixed.
About Hertz Corp.
Hertz Corp. and its subsidiaries -- http://www.hertz.com/--
operate a worldwide vehicle rental business under the Hertz,
Dollar, and Thrifty brands, with car rental locations in North
America, Europe, Latin America, Africa, Asia, Australia, the
Caribbean, the Middle East, and New Zealand. They also operate a
vehicle leasing and fleet management solutions business.
On May 22, 2020, The Hertz Corporation and certain of its U.S. and
Canadian subsidiaries and affiliates filed voluntary petitions for
reorganization under Chapter 11 in the U.S. Bankruptcy Court for
the District of Delaware (Bankr. D. Del. Case No. 20-11218).
Judge Mary F. Walrath oversees the cases.
The Debtors have tapped White & Case LLP as their bankruptcy
counsel, Richards, Layton & Finger, P.A., as local counsel, Moelis
& Co. as investment banker, and FTI Consulting as financial
advisor. The Debtors also retained the services of Boston
Consulting Group to assist the Debtors in the development of their
business plan. Prime Clerk LLC is the claims agent.
The U.S. Trustee for Regions 3 and 9 appointed a Committee to
represent unsecured creditors in Debtors' Chapter 11 cases. The
Committee has tapped Kramer Levin Naftalis & Frankel LLP as its
bankruptcy counsel, Benesch Friedlander Coplan & Aronoff LLP as
Delaware counsel, UBS Securities LLC as investment banker, and
Berkeley Research Group, LLC, as financial advisor. Ernst & Young
LLP provides audit and tax services to the Committee.
* * *
Hertz Global and its subsidiaries emerged from Chapter 11
bankruptcy at the end of June 2021. Hertz won approval of a Plan
of Reorganization that unimpaired all classes of creditors (who are
legally deemed to have accepted it) and was approved by more than
97% of voting shareholders. The Plan provided for the existing
shareholders to receive more than $1 billion of value.
Recovery by shareholders of close to $8 a share was made possible
after a fierce competition among bidders for control in the
company. Initial offers from potential bidders for Hertz in its
bankruptcy offered nothing for equity. Hertz in May 2021 selected
investment firms Knighthead Capital Management LLC and Certares
Management LLC, joined by other investors including Apollo Global
Management Inc. and a group of existing shareholders, as the
winning bidders for control of the bankrupt company. A rival group
that included Centerbridge Partners LP, Warburg Pincus LLC and
Dundon Capital Partners LLC was outbid at auction.
Hertz's Plan eliminated over $5 billion of debt, including all of
Hertz Europe's corporate debt, and will provide more than $2.2
billion of global liquidity to the reorganized Company. Hertz also
emerged with (i) a new $2.8 billion exit credit facility consisting
of at least $1.3 billion of term loans and a revolving loan
facility, and (ii) an $7 billion of asset-backed vehicle financing
facility, each on favorable terms.
HOME STRATEGY: Taps Ginsberg & Misk as Special Counsel
------------------------------------------------------
Home Strategy Inc. seeks approval from the U.S. Bankruptcy Court
for the Eastern District of New York to employ Ginsberg & Misk, LLP
as special litigation counsel.
The Debtor needs the firm's legal assistance in connection with a
case which was originally pending in the Supreme Court of the State
of New York, County of New York, Index No. 704157/2020, and has
been removed to the Eastern District of New York, Case No.
1:22-cv-03625, captioned as Dave Surujnarain v. Christopher
Humbert, Home Strategy Inc., NSK Equities LLC and Jaques Pelt.
The firm will be paid at these rates:
Partners $500 per hour
Associates $400 per hour
The firm will also be reimbursed for its out-of-pocket expenses.
Christopher Ryan Clarke, Esq., a partner at Ginsberg & Misk,
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:
Christopher Ryan Clarke, Esq.
Ginsberg & Misk LLP
215-48 Jamaica Avenue
Queens Village, NY 11428
Tel: (718) 468-0500
Email: CClarke@GMLayers.net
About Home Strategy
Home Strategy Inc. is a single asset real estate (as defined in 11
U.S.C. Sec. 101(51B)). It owns a multi-unit residential property
located at 119-31 197th St., St. Albans, N.Y.
Home Strategy sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 22-41377) on June 15,
2022, with between $1 million and $10 million in assets and between
$500,000 and $1 million in liabilities. Christopher Humbert,
president of Home Strategy, signed the petition.
Judge Elizabeth S. Stong oversees the case.
Dawn Kirby, Esq., at Kirby Aisner & Curley, LLP is the Debtor's
counsel.
HONX INC: Mediation Fails in Chapter 11 Case
--------------------------------------------
Vince Sullivan of Law360 reports that mediation fails In Hess
Corp.'s asbestos unit, HONX Inc., Chapter 11 case.
Hess Corp. unit HONX Inc. told a Texas bankruptcy judge Monday,
Sept. 19, 2022, that its efforts to mediate asbestos injury claims
failed and that the debtor wants to move forward with a Chapter 11
plan process that includes a claims estimation process.
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. Tex. 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.
HOYOS INTEGRITY: Court OKs $2.5MM Increase of DIP Loan
------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware authorized
Hoyos Integrity Corporation to enter into an amendment to its
postpetition financing agreement.
Hoyos is permitted to borrow an additional $2.5 million to allow
the Debtor to borrow up to $5 million, pursuant to and in
accordance with the terms and conditions of the Senior Secured,
SuperPriority Debtor-In-Possession Loan and Security Agreement by
and among the Debtor, as borrower, the entities from time-to-time
party thereto, as lenders, and Manuel A. Varela, in his capacity as
agent.
The DIP Credit Agreement and all related documents constitute valid
and binding obligations of the Debtor, enforceable against the
Debtor in accordance with their terms and the terms of the Order.
The Final DIP Order is amended to increase the Term Loan from $2.5
million to $5 million and to permit the Debtor to borrow an
additional $2.5 million. Except as otherwise provided, all terms
and conditions of the Final DIP Order remain in full force and
effect.
As previously reported by the Troubled Company Reporter, Green
Hills Software LL asserts that on December 15, 2020, the Debtor, as
borrower, and Green Hills, as lender, entered into a Loan and
Security Agreement pursuant to which Green Hills asserts it agreed
to make a loan to the Debtor in the original principal amount of $4
million and thereafter an additional principal amount of $105,217.
Green Hills further asserts the obligations under the Green Hills
Loan Agreement were secured by security interests and liens granted
by the Debtor to Green Hills upon the "Collateral."
The Debtor does not have sufficient available sources of working
capital to operate the Debtor's business in the ordinary course
without the DIP Facility and the ability to use cash collateral.
As adequate protection, Green Hills was granted a valid, binding,
continuing, enforceable, fully perfected, nonavoidable, senior
additional and replacement security interest in and lien on all DIP
Collateral.
A copy of the order is available at https://bit.ly/3QI9f5c from
PacerMonitor.com.
About Hoyos Integrity
Hoyos Integrity Corporation is an information technology company
that specializes in the fields of mobile, security, and
technology.
Hoyos Integrity sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 22-10365) on April 21,
2022. In the petition signed by Frank Tobin, president, the Debtor
disclosed up to $10 million in estimated assets and up to $50
million in estimated liabilities.
Judge Mary F. Walrath oversees the case.
Raymond H. Lemisch, Esq., at Klehr Harrison Harvey Branzburg LLP
serves as the Debtor's legal counsel.
JJS LOGISTICS: Auction Sale of Property & Vehicles Set for Sept. 28
-------------------------------------------------------------------
Judge Catherine Peek McEwen of the U.S. Bankruptcy Court for the
Middle District of Florida authorized JJS Logistics of Florida,
Inc.'s bidding procedures in connection with the auction sale of
the following:
(1.) the tangible personal property in the form of equipment,
scanners and all of the Debtor's other assets excluding vehicles
identified on Exhibit A, however, including after-market equipment
added to the vehicles (collectively, the "Property"); and
(2.) the Debtor's vehicles identified on Exhibit A free and
clear of liens, claims, encumbrances and interests.
The auction, bid and marketing procedures will be as follows:
(1.) Upon acceptance of the Offer and the entry of the Order,
the Buyer's Deposit will be transferred to JME Trust Account.
(2.) Qualified parties will inspect the Property and
Vehicles.
(3.) The Debtor was to accept any offers for the Property
and/or the Vehicles through and including 5:00 p.m. on Sept. 26,
2022. The minimum competing bid will be $440,000.
(4.) All competing bidders will deposit 10% of their bid
price in the JME Trust Account by the Bid Deadline.
(5.) One business day prior to the Auction, all "higher"
bidders will deposit an additional $10,000 in the JME Trust Account
in cash or immediately available funds.
(6.) On Sept. 28, 2022, at 1:00 p.m., the Debtor will conduct
an auction.
(7.) In the event that CBR, LLC is not the final approved
buyer, CBR will be entitled to a break up fee in the amount of
$20,000 as compensation for running the Debtor's business pending
the sale and will be reimbursed any costs advanced for the benefit
of the Estate.
Upon entry the Debtor will promptly mail or serve a copy of the
Order to all parties-in-interest. The manner of notice and
advertising of the proposed transactions constitutes sufficient and
proper notice and is approved in all respects.
The sale of the Property and Vehicles pursuant to the procedures
set forth will constitute the highest and best offer for the
purchase of the Property and Vehicles.
The Debtor is authorized to execute and deliver all documents and
to take all appropriate actions necessary to evidence and
consummate the closing on the sale of the Property and Vehicles to
the respective purchaser(s).
No sale may take place unless the sale price is sufficient to pay
the liens of Ford Motor Credit Co., LLC in full as to the 2020 FORD
T250 VIN: 1FTBR3XG8LKB65807 and 2020 FORD T350 VIN:
1FTBW3X85LKB58458. For avoidance of doubt, no sale can occur free
and clear of liens as to the Ford vehicles unless Ford is paid in
full or agrees in writing to accept an amount short of their
payoff. The vehicle described as 2020 FORD T350 VIN:
1FTBW3XG5LKB35527 which is subject of a Lease cannot be included in
the sale absent agreement by Ford, in writing, in advance of the
sale. Any buyer at the auction or sale is required to pay the
gross sales price to the Debtor and the Debtor is authorized to
distribute the lien payoff funds directly to Ford as soon as
reasonably practicable after the conclusion of the sale.
The respective liens of First Citrus Bank ("FCB"), Ford, and First
Source Bank ("FSB") will attach to the proceeds of the sale of
their respective collateral, and the Debtor will obtain consent to
any bid from FCB, Ford and FHB prior to the Auction. FCB, Ford,
and FSB retain and reserve all rights to object to the final sale
of any of their collateral to the extent such bid offers do not
exceed such secured creditors' allowed secured claim.
The Debtor may assign and the purchaser(s) may assume the ISP
Agreement pursuant to Sections 365(a), 365(f) and 1123(b)(2) of the
Bankruptcy Code subject to the approval of FedEx as required under
the ISP Agreement.
A hearing on the Motion was held on Aug. 16, 2022 at 1:30 p.m.
A copy of the Exhibit A is available for free at
https://tinyurl.com/2pcpy6cu from PacerMonitor.com free of charge.
About JJS Logistics of Florida
JJS Logistics of Florida Inc. is a Florida profit corporation
which
provides local FedEx delivery commercial and residential services
in western Pasco County.
JJS Logistics of Florida sought protection under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Court (Bankr. M.D. Fla. Case No.
22-01884) on May 10, 2022, listing as much as $500,000 in both
assets and liabilities. Amy Denton Mayer has been appointed as
Subchapter V trustee.
Judge Catherine Peek McEwen oversees the case.
Daniel E. Etlinger, Esq., at Jennis Morse Etlinger, is the
Debtor's
counsel.
JOHN V. GALLY: Gets OK to Hire Stephens & Company as Accountant
---------------------------------------------------------------
The John V. Gally Family Protective Trust Inc. received approval
from the U.S. Bankruptcy Court for the District of Arizona to
employ Stephens & Company, PLLC as accountant.
The firm will render these services:
(a) render day-to-day business accounting services;
(b) update charts of accounts, recording of accounts payable
and receivable;
(c) post payments;
(d) update books to account for income, expenses, assets
purchased or sold, loans, interest and other transactions;
(e) review monthly bank statements to ensure transactions are
property reported;
(f) review historical financial performance as well as history
of the bankruptcy matter;
(g) assist with preparation of monthly small business
operating reports, and other reporting requirements;
(h) develop a long-term financial forecast;
(i) develop a feasibility analysis for the Subchapter V Plan;
(j) develop a liquidation analysis for the Subchapter V Plan;
(k) provide possible testimony at a Plan confirmation
hearing;
(l) respond to questions from creditors, the United States
Trustee, and other parties-in-interest as requested by the Debtor;
(m) provide general restructuring advice and assistance; and
(n) provide such additional financial services as may be
requested by the Debtor's counsel or authorized by subsequent order
of the court.
The hourly rates of the firm's professionals are as follows:
Certified Public Accountants $375
Managers $285
Associates $170
Staff $125
Administrative $90
Samuel Fisher, a senior manager at Stephens & Company, disclosed in
a court filing that the firm is a "disinterested person" as that
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Samuel W. Fisher
Stephens & Company, PLLC
7600 N. 16th St., Ste. 105
Phoenix, AZ 85020
Telephone: (602) 932-3531
About The John V. Gally Family
Protective Trust Inc.
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, with between
$1 million and $10 million in both assets and liabilities. James E.
Cross of the Cross Law Firm, PLC was appointed as Subchapter V
trustee.
The Debtor tapped Bradley David Pack, Esq., at Engelman Berger PC
as counsel and Stephens & Company, PLLC as accountant.
LIONHEART TRAUMA: Wins Interim Cash Collateral Access
-----------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Kentucky,
Lexington Division, authorized Lionheart Trauma Support Services,
LLC to use cash collateral on an interim basis in accordance with
the budget, with a 10% variance, through the final hearing date set
for October 20, 2022, at 9 a.m.
As a result of the liens and/or security interests set forth in the
UCC-1 filing attached to the Notice of Filing of Evidence of Liens
in cash collateral, an unidentified creditor asserts a lien on the
Cash Collateral of the Debtor.
As adequate protection for any diminution in the value of the Cash
Collateral Creditor's interests in the cash collateral, pursuant to
11 U.S.C. sections 361 and 363, the Cash Collateral Creditor is
granted liens, upon the revenues from operations of the Debtor in
the priority as existed as of the Petition Date, subject only to
any valid and enforceable, perfected, and non-avoidable liens of
other secured creditors. The Cash Collateral Creditor does not
waive its right to request and receive additional adequate
protection from the Debtor, including but not limited to, monthly
adequate protection payments.
The Replacement Liens granted will be deemed effective, valid, and
perfected as of the Petition Date without the necessity of the
filing or lodging by or with any entity of any documents or
instruments otherwise required to be filed or lodged under
applicable on bankruptcy law.
As additional adequate protection, the Debtor will continue to
account for all cash use, and the proposed cash use as set forth in
the Budget is being incurred primarily to preserve property of the
Estate.
The Replacement Liens will be junior to the Debtor's obligation to
pay allowed administrative expense claims in the event the case
converts to a case under Chapter 7.
A copy of the order is available at https://bit.ly/3RG57Em from
PacerMonitor.com.
About Lionheart Trauma Support Services, LLC
Lionheart Trauma Support Services, LLC is a Kentucky limited
liability company that employs a varied group of social workers,
counselors, therapists and support staff to provide both in-person
and remote counseling services to individuals and groups, with a
focus on trauma-related symptoms. They also provide education and
training for groups and medication management for individual
clients. The Company is led by sole member Katherine L. Middleton,
a licensed clinical social worker with a Masters Degree in social
work.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Ky. Case No. 22-50861) on September 6,
2022. In the petition signed by Middleton, the Debtor disclosed up
to $500,000 in both assets and liabilities.
Judge Gregory R. Schaaf oversees the case.
Dean A. Langdon, Esq., at DelCotto Law Group PLLC is the Debtor's
counsel.
LTL MANAGEMENT: Claimants Tell 3rd Circuit Chapter 11 Was Bad Faith
-------------------------------------------------------------------
Daniel Gill of Bloomberg Law reports thatJohnson & Johnson's
controversial use of Chapter 11 to handle widespread
asbestos-related litigation is under review by the Third Circuit,
which will weigh whether a financially healthy company can use
bankruptcy to resolve mass tort cases.
The dispute stems from J&J's decision last year to shift billions
of dollars in mass tort liabilities to a newly created entity, LTL
Management LLC. The health care giant then immediately placed LTL
into bankruptcy to consolidate all its asbestos litigation in one
place.
The US Court of Appeals for the Third Circuit on Monday is hearing
oral arguments on whether a solvent company can spin off an entity
to handle mass tort claims. The court will also review the extent
of bankruptcy courts' powers to shield non-bankrupt companies --
including Johnson & Johnson -- from being sued for those injuries.
The Third Circuit ruling will likely be watched closely as more
companies resort to similar ways to cabin mass tort liability in a
spun-off company with few assets.
Victims who allegedly suffered asbestos-related injuries from using
J&J's baby powder appealed to the Third Circuit a ruling by the US
Bankruptcy Court for the District of New Jersey in February 2022
that declined to dismiss LTL's bankruptcy. The court also barred
any further litigation against J&J and other co-defendants.
In siding with LTL and J&J, the bankruptcy court said handling
complex mass tort litigation is a valid purpose for bankruptcy,
even if a debtor’s assets are greater than its liabilities.
But the tort claimants will argue that J&J, with a market
capitalization of about $450 billion, is an enormous financial
success, and its bankruptcy filing for LTL was done in bad faith.
The US Trustee, the Department of Justice's bankruptcy watchdog,
has agreed with the claimants.
The claimants also argue that the bankruptcy court's ruling
violates their constitutional rights to due process and to a jury
trial.
The bankruptcy code exists to give the "honest but unfortunate
debtor" a fresh start, said Monique Hayes, a partner of DGIM Law
and adjunct professor at the University of Miami School of Law.
"When there's a catastrophe, you need redress that's fair and
equitable, but you also have the idea that people and businesses
should be able to get a fresh start," she said.
Texas Two-Step
At the heart of the case is J&J's use of a Texas state law that
allows companies to split into two, with one of those new entities
exclusively housing tort liability. The maneuver is commonly called
the "Texas Two-Step."
Facing tens of thousands of claims alleging J&J's product caused
mesothelioma or ovarian cancer, J&J's affiliate that sold the baby
powder split into two new entities. One of those entities, LTL,
assumed the liabilities but none of the operations or assets.
J&J funded LTL with $2 billion to pay tort claimants. Shortly after
its creation, LTL filed Chapter 11.
"J&J is using this bankruptcy as a tactic to force an
agreement—an attempt to remove the jury trial," said attorney
Jonathan Ruckdeschel of Ruckdeschel Law Firm, LLC, who represents a
mesothelioma claimant.
It's not per se bad faith to use the Texas Two-Step, said Bruce
Markell, a bankruptcy professor at Northwestern Pritzker School of
Law and former bankruptcy judge.
But the combination of several factors -- including J&J's quest for
legal protections, the LTL spin off, and attempt to avoid jury
awards -- makes it problematic for many critics of J&J’s moves,
Markell said.
If the Third Circuit doesn't reverse, "the public's confidence in a
just bankruptcy system will be further eroded as the rich get to
write their own rules," Markell said.
'Expeditious Pace'
LTL argues that bankruptcy is a more efficient way to manage mass
tort debt even for the claimants, as it would likely result in
quicker payouts. Many victims are dealing with serious, terminal
illnesses.
"There's no way the tort system could conceivably keep up with”
all of victims' claims, LTL said in a court filing. The bankruptcy
court would proceed "at a far more expeditious pace," it said.
Damage awards can also vary widely among state courts. "Talc
litigation has already proven inequitable," LTL said in court
filings.
The New Jersey bankruptcy court said in its ruling that tort
claimants would have to engage in “an uneven, slow-paced race to
the courthouse” if their claims weren’t handled through LTL’s
bankruptcy.
LTL has also argued that a bankruptcy court is the least expensive
and most expedient forum for handling mass tort litigation.
The bankruptcy court agreed, finding that without Chapter 11, the
company would spend between $100 and $200 million a year litigating
the claims. Such litigation could take decades, the New Jersey
bankruptcy court said.
Counsel for LTL didn't respond to a request for comment.
About LTL Management
LTL Management, LLC, is a subsidiary of Johnson & Johnson (J&J),
which was formed to manage and defend thousands of talc-related
claims and oversee the operations of Royalty A&M. Royalty A&M owns
a portfolio of royalty revenue streams, including royalty revenue
streams based on third-party sales of LACTAID, MYLANTA/MYLICON and
ROGAINE products.
LTL Management filed a petition for Chapter 11 protection (Bankr.
W.D.N.C. Case No. 21-30589) on Oct. 14, 2021. The case was
transferred to New Jersey (Bankr. D.N.J. Case No. 21-30589) on Nov.
16, 2021. The Hon. Michael B. Kaplan is the case judge. At the time
of the filing, the Debtor was estimated to have $1 billion to $10
billion in both assets and liabilities.
The Debtor tapped Jones Day and Rayburn Cooper & Durham, P.A., as
bankruptcy counsel; King & Spalding, LLP and Shook, Hardy & Bacon
LLP as special counsel; McCarter & English, LLP as litigation
consultant; Bates White, LLC as financial consultant; and
AlixPartners, LLP as restructuring advisor. Epiq Corporate
Restructuring, LLC, is the claims agent.
An official committee of talc claimants was formed in the Debtor's
Chapter 11 case on Nov. 9, 2021. On Dec. 24, 2021, the U.S. Trustee
for Regions 3 and 9 reconstituted the talc claimants' committee and
appointed two separate committees: (i) the official committee of
talc claimants I, which represents ovarian cancer claimants, and
(ii) the official committee of talc claimants II, which represents
mesothelioma claimants.
The official committee of talc claimants I tapped Genova Burns LLC,
Brown Rudnick LLP, Otterbourg PC and Parkins Lee & Rubio LLP as its
legal counsel. Meanwhile, the official committee of talc claimants
II is represented by the law firms of Cooley LLP, Bailey Glasser
LLP, Waldrep Wall Babcock & Bailey PLLC, Massey & Gail LLP, and
Sherman Silverstein Kohl Rose & Podolsky P.A.
About Johnson & Johnson
Johnson & Johnson is an American multinational corporation founded
in 1886 that develops medical devices, pharmaceuticals, and
consumer packaged goods. It is the world's largest and most
broadly based healthcare company.
Johnson & Johnson is headquartered in New Brunswick, New Jersey,
the consumer division being located in Skillman, New Jersey. The
corporation includes some 250 subsidiary companies with operations
in 60 countries and products sold in over 175 countries.
The corporation had worldwide sales of $82.6 billion in 2020.
MASTEN SPACE: Gets OK to Hire Stretto Inc. as Balloting Agent
-------------------------------------------------------------
Masten Space Systems, Inc. received approval from the U.S.
Bankruptcy Court for the District of Delaware to employ Stretto,
Inc. as balloting agent.
The firm's services include:
(a) assisting with, among other things, balloting and tabulation
of votes, and preparing any related reports, as required in support
of confirmation of a Chapter 11 plan;
(b) preparing an official ballot certification and, if
necessary, testifying in support of the ballot tabulation results;
and
(c) providing such other balloting and other administrative
services as may be requested from time to time by the Debtor, the
bankruptcy court or the Office of the Clerk of the Bankruptcy
Court.
The firm will be paid a flat rate of $2,500 for its services.
Sheryl Betance, senior managing director at Stretto, disclosed in a
court filing that her firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Sheryl Betance
Stretto, Inc.
410 Exchange, Suite 100
Irvine, CA 92602
Tel: (800) 634-7734 / 714-716-1872
Email: sheryl.betance@stretto.com
About Masten Space Systems
Masten Space Systems, Inc. -- https://www.masten.aero -- is a space
infrastructure company in Mojave, Calif.
Masten Space Systems filed for Chapter 11 protection (Bankr. D.
Del. Case No. 22-10657) on July 29, 2022, with between $10 million
and $50 million in both assets and liabilities. David Masten,
president and chief technology officer of Masten Space Systems,
signed the petition.
The Debtor tapped Morris James, LLP as bankruptcy counsel; Alston &
Bird, LLP as special counsel; Gavin/Solmonese, LLC as financial
advisor and restructuring advisor; and Stretto, Inc. as balloting
agent.
The U.S. Trustee for Region 3 appointed an official committee of
unsecured creditors in the Debtor's Chapter 11 case on Aug. 16,
2022. The committee is represented by Kilpatrick Townsend &
Stockton, LLP and Cozen O'Connor.
METROPOLITAN COLLEGE: Fitch Lowers IDR to 'BB-', Outlook Negative
-----------------------------------------------------------------
Fitch Ratings has downgraded to 'BB-' the Metropolitan College of
New York (MCNY)'s Issuer Default Rating (IDR) and $66.7 million of
revenue bonds, series 2014, issued by Build NYC Resource
Corporation on behalf of MCNY.
The Rating Outlook is Negative.
SECURITY
The bonds are general obligations of the college and secured by a
mortgage on the 40 Rector Street property (now 60 West) and a
pledge of unrestricted revenues.
ANALYTICAL CONCLUSION
Fitch's downgrade of MCNY's IDR and bond rating to 'BB-' from 'BB'
reflect the college's continued enrollment declines through 2022
(December 31 YE) and the prospects for resultant revenue pressure,
given the college's reliance on tuition revenues and
enrollment-driven grant funds. Fitch's asymmetric credit factor
consideration for revenue defensibility at 'weaker' reflects the
elevated credit risk associated with recent and prospective
enrollment pressure.
MCNY's operating risk assessment is stronger, reflecting a history
of balanced operations, effective cost management and the benefits
of the college's new facilities. MCNY has exceptionally limited
intermediate-term capital needs following completion of entirely
new facilities at its Manhattan and Bronx locations within the last
five years, and Fitch expects capex to remain low in the near term
with greater investment over the intermediate to long term. Still,
the assessment has limited uplift on the overall rating outcome as
MCNY's debt burden is meaningful, as evidenced by a 21.8% operating
margin and 1.2x debt service coverage (DSC) in 2021, (Fitch
calculated), which limits any capacity for variable performance.
Annual debt service was equal to over 17% of 2021 revenues.
MCNY's balance sheet ratios remain weak, with available funds (AF)
to adjusted debt ranging between 20% and 30% historically and in
Fitch's stress case scenario, consistent with the 'bb' financial
profile assessment. Fitch's assessment of MCNY's liquidity at
'weaker' reflects Fitch's concern that, despite the college's
history of cost management and strong cash flow, recent demand
erosion and a high debt burden will likely pressure DSC in the near
to intermediate term barring significant spending cuts.
The Negative Outlook reflects Fitch's continued concern that
persistent declines in MCNY's enrollment base may pressure
revenues, operating flexibility, and DSC over the outlook period
after federal institutional relief funds have been drawn. 2021
headcount enrollment of 660 declined by nearly half from 2017
levels and reflect a decline of 196 student from the prior year.
Declines in recent years have been largely offset by federal aid,
which Fitch expects will buoy revenues through 2022. Even with
federal aid, weaker enrollment and limited remaining expense
flexibility may pressure cash flow margins, which are necessary to
service the college's very high debt burden.
KEY RATING DRIVERS
Revenue Defensibility: 'bb'
Weak Demand; Limited Revenue Sources
Revenue defensibility is characterized by weaker demand indicators,
a history of volatile and steeply declining enrollment, and high
dependence on student tuition and fees as well as enrollment-driven
grant revenues. A sustained decline of 23% in already weak summer
session enrollment will pressure 2022 revenues. As of the six
months ended June 30, 2022, revenues of $16.5 million were down
over 11% from the same time last year.
Federal relief funds from all legislation passed to date should
largely offset the financial impact of weaker enrollment and the
release of these funds may partially offset the impact of
enrollment through 2022. The 'weaker' asymmetric credit factor
consideration reflects Fitch's concern that the recent enrollment
pressure and reduced tuition rates reflect ongoing erosion in
demand that is unlikely to stabilize in the near term.
Operating Risk: 'aa'
Strong Cash Flow; Limited Capital Needs
MCNY's stronger operating risk assessment reflects strong and
consistent cash flow margins resulting from active expense
management relative to enrollment trends, though the severity of
recent enrollment erosion will likely pressure cash flow in 2022.
The nominal generation of cash flow at or near historical levels is
necessary to maintain adequate DSC. Operating risk related to
capital is exceptionally low, as MCNY undertook financings in 2014
and 2015 to outfit two entirely new campuses in Manhattan and the
Bronx.
The 'aa' assessment is tempered somewhat by MCNY's relatively high
debt burden, which limits any capacity for operating variability
without pressuring DSC or requiring reserve usage.
Financial Profile: 'bb'
Elevated Leverage and Sensitivity to Stress
The college's financial profile assessment incorporates very high
institutional leverage resulting from a limited AF cushion ($22.8
million in 2021) relative to substantial debt of $67 million
undertaken in recent years for major capital projects.
AF-to-adjusted debt historically ranged from 20% to 34%, increasing
to the higher end of this range in recent years with investment
gains and investment of cash flow. The rating remains vulnerable to
demand and revenue volatility in Fitch's downside scenario
analysis, with leverage metrics declining and pressured DSC.
MCNY's liquidity profile assessment at 'weaker' reflects Fitch's
concern that enrollment and revenue declines may pressure economic
DSC in 2022 and beyond, especially in Fitch's stress case. This
asymmetric consideration further highlights an elevated risk of
multi-notch rating transition in the event of an unexpected failure
to meet coverage covenant requirements. MCNY has an annual 1.2x
coverage test, and does not have a history of missed covenants.
Asymmetric Additional Risk Considerations
No asymmetric additional risk considerations apply to MCNY's
rating.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- Failure to stabilize enrollment and net tuition pressures, with
headcount and/or FTE remaining suppressed beyond 2022;
- Deterioration of cash flow margins below 17% or at levels
insufficient to produce covenanted 1.2x DSC;
- Erosion in absolute liquidity, and associated balance sheet
ratios with AF-to-adjusted debt falling below 25%.
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- A sustained trend of enrollment and net tuition and fee revenue
growth could support consideration of a Stable Outlook;
- A record of substantially improved leverage with AF-to-adjusted
debt consistently exceeding 50% could support positive rating
movement.
CREDIT PROFILE
Founded in 1964, MCNY is a private, not-for-profit institution
offering certificate programs and associate and bachelor's degrees,
as well as master's degrees in education, management, public
affairs and administration. The college is accredited by the Middle
States Association of Colleges and Schools. Total FTE enrollment
has been somewhat volatile and declined in recent years to around
660 in fall 2021.
Students are largely adult, non-traditional commuter students.
Given this student population, courses are structured to be
accessible to working adults (day, evening, weekend) and include
distance-learning components. The college operates three full
semesters each academic year, using a cohort model; however, the
majority of students enter in the fall semester.
In August 2016, MCNY relocated its primary campus to recently
acquired space in a building in lower Manhattan near One World
Trade Center and the Fulton Center transportation hub. Previously,
the college had leased space in another downtown location.
Additionally, the college relocated its Bronx extension program to
a newly acquired condominium space in close to the prior Bronx
location. According to management, both of these facilities opened
on schedule and are now in full operation.
MCNY covenants to maintain DSC at or above 1.2x tested annually and
to maintain liquid resources of at least $5 million. Failure to
meet 1.2x coverage will result in a consultant call and adherence
to proposed actions. Failure to meet coverage of 1.0x constitutes
an immediate event of default under the bond documents.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
Debt Rating Prior
---- ------ -----
Metropolitan College
of New York (NY) LT IDR BB- Downgrade BB
Metropolitan College
of New York (NY)
/General Revenues
/1 LT LT BB- Downgrade BB
MURPHY CREEK ESTATES: Files Bare-Bones Chapter 11 Petition
----------------------------------------------------------
Murphy Creek Estates, LLC, filed for chapter 11 protection in the
District of Colorado without stating a reason.
Murphy Creek Estates listed debt of less than $1 million and
between 1 and 49 creditors. The petition states that funds will
not be available to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
Oct. 25, 2022, at 1:00 PM at Telephonic Chapter 11.
About Murphy Creek Estates
Murphy Creek Estates LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Col. Case No. 22-13594) on Sept.
19, 2022. In the petition filed by Kris Kristjansso, as President
Castlerock OZF, Inc. Manage, the Debtor reported assets and
liabilities between $1 million and $10 million. The Debtor is
represented by Bonnie Bell Bond of the Law Office of Bonnie Bell
Bond.
NEWAGE INC: Judge Approves Quick Chapter 11 Auction
---------------------------------------------------
Rick Archer of Law360 reports that a Delaware bankruptcy judge
Tuesday, September 20, 2022, said health and wellness product
distributor NewAge Inc. can put its assets on the block within
three weeks after the stalking horse bidder resolved objections
with a pledge of up to $1.5 million for unsecured creditors.
The deadline to submit initial bids is October 6, 2022 at 4:00 p.m.
(prevailing Eastern Time). An auction, if necessary, will commence
at 10:00 a.m. (prevailing Eastern Time) on October 7, 2022 at the
offices
of Houlihan Lokey, 245 Park Ave, 32nd Floor, New York, NY 10167.
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. Lead 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 pre-bankruptcy marketing process
for the Debtors. Stretto is the claims agent.
OLYMPIA SPORTS: U.S. Trustee Appoints Creditors' Committee
----------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed an official
committee to represent unsecured creditors in the Chapter 11 cases
of Olympia Sports Acquisitions, LLC and its affiliates.
The committee members are:
1. Crocs Inc.
Attention: Kathy Zamora
13601 Via Varra
Broomfield, CO 80020
Phone: (303) 848-7102
Email: kzamora@crocs.com
2. GGP-Maine Mall LLC
c/o Brookfield Properties Retail, Inc.
Attention: Julie Minnick
350 N. Orleans St., Suite 300
Chicago, IL 60654
Phone: (312-960-2707)
Email: Julie.bowden@bpretail.com
3. Hanesbrands, Inc.
Attention: Susan Venable
1000 East Hanes Mill Road
Winston-Salem, NC 27105
Phone: (336) 519-4821
Email: susan.venable@hanes.com
4. J Street 1976, LLC
Attention: William (Joey) Pointer
310 East Main Street, Suite 200
Carrboro, NC 27510
Phone: (919) 593-7760
Email: joey@fleetfeet.com
5. Nike USA, Inc.
Attention: Genna Clark
One Bowerman Dr.
Beaverton, OR 97005
Phone: (503) 532-8536
Email: genna.clark@nike.com
6. Skechers
Attention: Craig Lindsay
225 S. Sepulveda Blvd.
Manhattan Beach, CA 90266
Phone: (714) 813-4074
Email: craiglin@skechers.com
7. United Parcel Service, Inc.
Attention: Farah Spainhour
P.O. Box 7247-0244
Philadelphia, PA 19179
Phone: (800) 811-1648
Email: fspainhour@ups.com
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About Olympia Sports
Olympia Sports Acquisitions, LLC, is a sporting goods retail
company that maintains brick and mortar locations across the East
Coast, including Maine, New Hampshire, Vermont, New York,
Massachusetts, Rhode Island, and New Jersey.
On Sept. 11, 2022, Olympia Sports and several affiliates,
including, RSG Acquisitions, LLC, Project Running Specialties,
Inc., and The Running Specialty Group, LLC, sought Chapter 11
bankruptcy protection (Bankr. D. Del. Lead Case No. 22-10853).
Olympia Sports estimated assets of $1 million to $10 million and
liabilities of $10 million to $50 million as of the bankruptcy
filing.
The Debtors tapped Shulman Bastian Friedman & Bui LLP as general
bankruptcy counsel; Morris James LLP as local Delaware counsel; and
Force 10 Partners as restructuring advisor. BMC Group is the
claims agent.
PHOENIX SERVICES: Case Summary & 30 Largest Unsecured Creditors
---------------------------------------------------------------
Lead Debtor: Phoenix Services Topco, LLC
4 Radnor Corporate Center, Suite 520
100 Matsonford Road
Radnor, Pennsylvania 19807
Business Description: Phoenix Services provides mission-critical
services to leading, global steel-
producing companies. This suite of
customer services primarily includes the
removal, handling, and processing of molten
slag at customer sites, as well as the
preparation and transportation of metal
scraps, raw materials, and finished
products.
Chapter 11 Petition Date: September 27, 2022
Court: United States Bankruptcy Court
District of Delaware
Nine affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Phoenix Services Topco, LLC (Lead Case) 22-10906
Phoenix Services Parent, LLC 22-10907
Phoenix Services Holdings Corp. 22-10908
Phoenix Services International LLC 22-10909
Metal Services LLC 22-10910
Terracentric Materials LLC 22-10911
Cool Springs LLC 22-10912
Metal Services Investment LLC 22-10913
Phoenix Receivables, LLC 22-10914
Judge: Hon. Mary F. Walrath
Debtors'
Attorneys: Ray C. Schrock, P.C.
Jeffrey D. Saferstein, Esq.
Garrett A. Fail, Esq.
WEIL, GOTSHAL & MANGES LLP
767 Fifth Avenue
New York, New York, 10153
Tel: (212) 310-8000
Fax: (212) 310-8007
Email: Ray.Schrock@weil.com
jeffrey.saferstein@weil.com
garrett.fail@weil.com
Debtors'
Delaware
Counsel: Daniel J. DeFranceschi, Esq.
Zachary I. Shapiro, Esq.
Matthew P. Milana, Esq.
RICHARDS, LAYTON & FINGER, P.A.
One Rodney Square, 920 North King Street
Wilmington, Delaware 19801
Tel: (302) 651-7700
Email: defranceschi@rlf.com
shapiro@rlf.com
milana@rlf.com
Debtors'
Financial
Advisor: ALIXPARTNERS, LLP
909 Third Avenue
New York, New York 10022
Debtors'
Investment
Banker: PJT PARTNERS INC.
280 Park Avenue
New York, New York 10017
Debtors'
Claims &
Noticing
Agent: STRETTO
Estimated Assets
(on a consolidated basis): $500 million to $1 billion
Estimated Liabilities
(on a consolidated basis): $500 million to $1 billion
The petitions were signed by Robert A. Richard as chief financial
officer.
A full-text copy of the Lead Debtor's petition is available for
free at PacerMonitor.com at:
https://www.pacermonitor.com/view/Z2ZUYHQ/Phoenix_Services_Topco_LLC__debke-22-10906__0001.0.pdf?mcid=tGE4TAMA
Consolidated List of Debtors' 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
1. Boyd Company Trade Vendor $3,494,669
Attn.: David Cummins
Department 8326
Carol Stream, Illinois 60122
Tel: (502) 551‐3452
Email: davecummins@boydcat.com
2. C & B Marine ‐ Gallatin, LLC Trade Vendor
$3,269,264
Attn.: David Orme
50 E River Center Boulevard
Covington, Kentucky 41011
Tel: (859) 217‐2251
Email: dorme@carlislebray.com
3. J.A. Riggs Tractor Co. Trade Vendor $2,322,815
Attn.: Denny Upton
P.O. Box 844753
Dallas, Texas 75284‐4753
Tel: (501) 940‐6316
Email: dennyu@jariggs.com
4. Altorfer Industries, Inc. Trade Vendor $2,106,894
Attn.: Don O'Neill
P.O. Box 809239
Chicago, Illinois 60680‐9201
Tel: (630) 489‐0060
Email: dononeill@altorfer.com
5. Radius Construction Co., Inc. Trade Vendor $1,698,062
Attn.: Matt Tobler
409 West 35th Street
Latonia, Kentucky 41015
Tel: (859) 291‐8812
Email: mtobler@radius1.com
6. Alta Construction Equipment III Trade Vendor $1,690,884
Attn.: Christopher Baima
29547 Network Place
Chicago, Illinois 60673
Tel: (708) 243‐0676
Email: christopher.baima@altg.com
7. Bridgestone Americas Trade Vendor $1,344,408
Attn.: Kolin Howell
P.O. Box 73418
Chicago, Illinois 60673‐7418
Tel: (512) 750‐3041
Email: howellkolin@bfusa.com
8. Tredroc Tire Services, LLC Trade Vendor $1,335,381
Attn.: Jason Miller
Drawer #2572
P.O. Box 5935
Troy, Michigan 48007
Tel: (989) 614‐1181
Email: jmiller@tredroc.com
9. Novatech ApS Trade Vendor $1,088,546
Attn.: Tom Gilchrist
Skudehavnsvej 30
9000 Aalborg
Denmark
Tel: (484) 784‐8290
Email: tom.gilchrist@on‐cranesolutions.com
10. E‐Crane International USA, Inc. Trade Vendor
$982,140
Attn.: Steve Osborne
1332 Freese Works Place
Galion, Ohio 44833
Tel: (614) 579‐3732
Email: steve.osborne@e‐crane.com
11. Carter Machinery Company Inc. Trade Vendor $940,527
Attn.: Donna Ashbrook
P.O. Box 751053
Charlotte, North Carolina 28275‐1053
Tel: (540) 529‐1420
Email: donna_ashbrook@cartermachinery.com
12. Halyard Corporation Trade Vendor $593,105
Attn.: Nick Balach
862 Kennedy Avenue
Schererville, Indiana 46375
Tel: (219) 798‐5495
Email: nbalach@halyardcorporation.com
13. Rud‐Chain, Inc. Trade Vendor
$541,534
Attn.: Jim Saunders
P.O. Box 367
Hiawatha, Iowa 52233
Tel: (304) 582‐8180
Email: jim.saunders@rudchain.com
14. Sennebogen LLC Trade Vendor $507,863
Attn.: Constantino Lannes
957 Sennebogen Trail
Stanley, North Carolina 28164
Tel: (704) 340‐8232
Email: clannes@sennebogenllc.com
15. SERP Participant #1 Supplemental $475,419
Executive
Retirement
Plan (SERP)
16. Whemco Steel Castings, Inc. Trade Vendor $472,400
Attn.: Thomas Kane
Dept. 781474
P.O. Box 78000
Detroit, Michigan 48278‐1474
Tel: (412) 576‐8979
Email: tkane@whemco.com
17. Mid South Sales, LLC Trade Vendor $465,430
Attn.: Anette Hiser
4522 East State Hwy. 18
Blytheville, Arkansas 72315
Tel: (870) 763‐6300
Email: ahiser@cadencepetroleum.com
18. ERP Participant #2 SERP $450,202
19. Cintas Corporation (LOC # 04M) Trade Vendor $428,656
Attn.: Anita Mikhail
P.O. Box 88005
Chicago, Illinois 60680‐1005
Tel: (610) 207‐8950
Email: mikhaila@cintas.com
20. Motion Industries Trade Vendor $405,582
Attn.: Randy Breaux
P.O. Box 404130
Atlanta, Georgia 30384‐4130
Tel: (205) 956‐1122
Email: randy.breaux@motion.com
21. SERP Participant #3 SERP $392,457
22. SERP Participant #4 SERP $385,625
23. Steel City Tire LLC Trade Vendor $364,104
Attn.: Jason Miller
Drawer # 2572
P.O. Box 5935
Troy, Michigan 48007‐5935
Tel: (989) 614‐1181
Email: jmiller@tredroc.com
24. Mellott Company, LLC Trade Vendor $362,999
Attn.: Jim Minnichbach
P.O. Box 45970
Baltimore, Maryland 21297
Tel: (717) 377‐2651
Email: jminnichbach@mellotts.com
25. G. WM. Walker Construction Company Trade Vendor $345,868
Attn.: Scott Walker
8760 Louisiana Street
Merrillville, Indiana 46410
Tel: (219) 736‐1850
Email: gwjr@walkerconstrucionco.com
26. Morris Motor Service, Inc. Trade Vendor $332,420
Attn.: Chris Linders
10525 W U.S. Hwy. 30, Bld. 7
Wanatah, Indiana 46390
Tel: (219) 313‐2493
Email: chris1@mmsitrucking.com
27. Grainger Trade Vendor $305,540
Attn.: Sarah Janowicz
401 S Wright Road
Janesville, Wisconsin 53546
Tel: (708) 522‐3129
Email: sarah.janowicz@grainger.com
28. Terberg Tractors Americas Inc. Trade Vendor $298,143
Attn.: Ferdinand Terberg
2790 NW 79 Avenue
Miami, Florida 33122
Tel: (786) 452‐9790
Email: f.terberg@terbergtractors.nl
29. Allegheny Shovel & Drag, Inc. Trade Vendor $293,144
Attn.: Jeremy Walters
328 Fogletown Road
Garrett, Pennsylvania 15542
Tel: (814) 242‐2497
Email: jeremycwalters@aol.com
30. SERP Participant #5 SERP $284,523
PUERTO RICO: PREPA and Bondholders Headed for Litigation
--------------------------------------------------------
Michelle Kaske of Bloomberg News reports that Puerto Rico's
bankrupt power utility and bondholders may face off in court
Wednesday in the wake of Hurricane Fiona's damage after mediation
talks over the agency's $9 billion debt restructuring ended without
a deal.
US District Court Judge Laura Taylor Swain ordered a hearing for
Wednesday on the commonwealth's push to start litigation after
months of court-supervised mediation failed to produce a
debt-cutting plan for Puerto Rico's Electric Power Authority,
called Prepa. The island's financial oversight board filed a
potential litigation schedule late Friday even though it still
wants to continue negotiations with creditors.
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.
QUICKER LIQUOR: Disclosures Okayed Subject to Revisions
-------------------------------------------------------
Judge Mike K. Nakagawa has entered an order that the Quicker Liquor
LLC, et al.'s Second Amended Disclosure Statement to Accompany
Debtors' Joint First Amended Chapter 11 Plan of Reorganization is
conditionally approved subject to the court's review of the
Debtors' redlined version.
The Debtors must file a redlined revision to the Second Amended
Disclosure Statement no later than September 30, 2022.
On Jan. 31, 2022, Quicker Liquor LLC and Nevada Wine Cellars, Inc.,
filed separate "skeleton" Chapter 11 petitions. Both Chapter 11
petitions were filed by the law firm of Larson & Zirzow, LLC. On
the same date, a Notice of Chapter 11 Bankruptcy Case was entered
informing parties in interest of the QL and NWC Chapter 11
bankruptcy proceedings; the deadline of June 1, 2022, for creditors
to file a proof of claim and August 1, 2022, for any governmental
unit to file a proof of claim; and set a meeting of creditors
required by Section 341 for March 3, 2022.
On Sept. 2, 2022, Manella and Luppi filed an objection to approval
of the Second Amended Disclosure Statement.
On Sept. 2, 2022, Manella and Luppi filed an opposition to the
Settlement Motion.
On Sept. 6, 2022, the Debtors filed a reply in support of approval
of the Second Amended Disclosure Statement.
On Sept. 6, 2022, the Debtors filed a reply in support of approval
of the Settlement Motion.
On Sept. 7, 2022, the Debtors filed a supplement to the Settlement
Motion consisting of a signed copy of the Settlement Agreement.
The court has reviewed the proposed Second Amended Disclosure
Statement and the Manella and Luppi Disclosure Opposition, along
with the record and history of these jointly administered
proceeding. Based on that review, the court will approve the Second
Amended Disclosure Statement as long as it includes additional
information addressing the Minella and Luppi claim. With those
additions, the court concludes that the Second Amended Disclosure
Statement will contain sufficient information to enable the
creditors in this case to make an informed judgment about whether
to accept or reject the proposed Second Chapter 11 Plan.
About Quicker Liquor
Quicker Liquor, LLC, and its affiliate, Nevada Wine Cellars, Inc.,
filed voluntary petitions for relief under Chapter 11 of the
Bankruptcy Code (Bankr. D. Nev. Lead Case No. 22-10331) on Jan. 31,
2022. In their petitions, the Debtors listed as much as $10 million
in both assets and liabilities. Kathy Trout, managing member,
signed the petitions.
Judge Mike K. Nakagawa oversees the cases.
Quicker Liquor and Nevada Wine Cellars are represented by Kung &
Brown and Carlyon Cica Chtd., respectively. The Law Offices of
Timothy Elson serves as the Debtors' special counsel.
The Debtors filed a joint Chapter 11 plan of reorganization on May
31, 2022.
SANDY ROAD: Taps United Country Commercial as Auctioneer
--------------------------------------------------------
Sandy Road Farms, LLC seeks approval from the U.S. Bankruptcy Court
for the District of Kansas to employ United Country Commercial
Auction Services as auctioneer.
The firm will render these services:
(a) advise and assist the Debtor with the marketing and sale
of the estate assets;
(b) organize the assets for an orderly presentation to the
marketplace;
(c) handle communications with interested parties and provide
necessary information;
(d) conduct the proposed auctions of real and personal
property; and
(e) perform such other services as may be necessary for the
successful completion of the auction.
The firm will receive 8 percent commission of the sale price of the
item. If an item is sold or withdrawn prior to auction, the firm
will receive 8 percent commission of the sale price or appraisal
value of the item, whichever is higher.
Kurt Hollenberg, a member of United Country Commercial Auction
Services, disclosed in a court filing that the firm is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
Kurt Hollenberg
United Country Commercial Auction Services
2820 N.W. Barry Road
Kansas City, MO 64154
Telephone: (800) 999-1020
Email: contact@unitedcountry.com
About Sandy Road Farms
Sandy Road Farms LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Kan. Case No. 22-40446) on Aug. 1, 2022,
with between $1 million and $10 million in assets and between $50
million and $100 million in liabilities. Glenn Karlberg, manager,
signed the petition.
Judge Dale L. Somers oversees the case.
McDowell Rice Smith & Buchanan and Cairncross & Hempelmann serve as
the Debtor's counsel. Glenn Karlberg at CFO Solutions, LLC is the
chief restructuring officer.
SAVVA'S RESTAURANT: Court Approves Disclosure Statement
-------------------------------------------------------
Judge Robert E. Grossman has entered an order approving the
Disclosure Statement of Savva's Restaurant, Inc., d/b/a Harvest
Diner.
The Debtor is authorized and directed to transmit a conformed copy
of this Order together with the Disclosure Statement and the Plan
to the U.S. Trustee, and to all known creditors, interest holders
and parties-in-interest herein by first class postage prepaid mail,
on or before September 23, 2022.
The hearing on confirmation of the First Amended Plan, or any
further amendments thereof, shall be held in person before the
Honorable Robert E. Grossman, United States Bankruptcy Judge,
United States Bankruptcy Court for the Eastern District of New
York, in Courtroom 860 of the Alfonse M. D'Amato Federal
Courthouse, 290 Federal Plaza, Central Islip, New York 11722, on
October 31, 2022 at 10:00 a.m. eastern standard time, or as soon
thereafter as counsel can be heard.
The Debtor is authorized to solicit acceptances or rejections of
the First Amended Plan.
The Debtor is authorized and directed to transmit a ballot
substantially in the form to all creditors and claimants holding
claims which are impaired under the First Amended Plan as set forth
in Article V of the Plan, together with a conformed copy of this
Order, the Disclosure Statement and the First Amended Plan, on or
before September 23, 2022.
The last day and time for ballots to be filed with, so as to be
received by, the Debtor's counsel, in order to be counted in the
determination of whether or not the Plan has been accepted, will be
4:00 p.m. eastern daylight time on October 24, 2022.
About Savva's Restaurant
Savva's Restaurant, Inc., doing business as Harvest Diner, filed a
voluntary petition for relief under Chapter 11 of the Bankruptcy
Code (Bankr. E.D.N.Y. Case No. 22-70382) on March 4, 2022,
disclosing $5,625,000 in total assets and $2,485,720 in total
liabilities. Kyriacos Savva, president, signed the petition.
Judge Robert E. Grossman oversees the case.
The Debtor tapped Pryor & Mandelup, LLP as bankruptcy counsel;
Lambrou Law Firm, P.C. as special counsel; and Prager Metis CPAs,
LLC as accountant.
SOMM INC: Gets OK to Hire Hurwitz Wheeler & Co. as Tax Accountant
-----------------------------------------------------------------
Somm, Inc. received approval from the U.S. Bankruptcy Court for the
Northern District of California to employ Hurwitz Wheeler & Co.,
Inc. as tax accountant.
The firm will perform various non-bankruptcy tax services,
including preparing federal and state tax returns and meeting with
management to discuss potential tax liabilities.
The firm will be paid a flat fee of $3,500 for the services.
Lewis Hurwitz, a partner at Hurwitz Wheeler & Co., 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:
Lewis Hurwitz
Hurwitz Wheeler & Co.
963 Transport Way #3
Petaluma, CA 94954
Tel: (707) 775-2950
Fax: (707) 775-2955
About Somm Inc.
Somm Inc. is a wine wholesaler and importer in Sonoma, Calif. It
conducts business under the name SommSelect.
Somm filed a petition for relief under Subchapter V of Chapter 11
of the U.S. Bankruptcy Code (Bankr. N.D. Calif. Case No. 22-10267)
on July 14, 2022, with up to $10 million in both assets and
liabilities. Mark M. Sharf has been appointed as Subchapter V
trustee.
Judge Roger L. Efremsky oversees the case.
The Law Offices of Michael C. Fallon, MCA Financial Group, Ltd. and
Hurwitz Wheeler & Co., Inc. serve as the Debtor's legal counsel,
restructuring advisor and tax accountant, respectively.
SOUTH EDGE: Court OKs Deal on Cash Collateral Access
----------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of California,
Santa Rosa Division, authorized The South Edge to use cash
collateral in accordance with its agreement with Poppy Bank.
The Debtor requires the use of cash collateral for operating costs
through December 2022, or the confirmation of a Chapter 11 Plan.
As of the date of filing the Petition, the Debtor owed
approximately $2,900,000 to Poppy. The obligation to Poppy is
secured by the Debtor's real property located at 2115 Old Adobe
Road, Petaluma, California, and the rents and proceeds thereof by
way of a recorded deed of trust.
The parties agreed that the Debtor may use cash collateral for
operating expenses in accordance with the budget, with a 20%
variance for each lien item and a 10% variance overall, through
December 2022.
To the extent of the present value of its interest in cash
collateral, Poppy will receive a continuing priority lien on
receivables from the operation of the business of the Debtor.
As adequate protection, Poppy is granted a post-petition
replacement lien on all presently owned or hereafter-acquired
assets of the Debtor.
Any provision of the Stipulation or the loan documents to the
contrary notwithstanding, the post-petition replacement lien
granted to Poppy will be subject and subordinate to a carve-out for
the following: the payment of compensation and expense
reimbursement to any trustee appointed in this action.
The Debtor will make monthly adequate protection payments to Poppy
as follows: (a) Payment for August 2022 will be $12,000, due and
payable within 5 days of the entry of an Order upon the
Stipulation; (b) payment for September 2022 will be $18,000 payable
by the 25th of the month; payment for October 2022 through the
earlier of Plan confirmation or December 2022 will be $23,500 per
month, due the 25th of each month.
A copy of the order is available at https://bit.ly/3dcZ4rD from
PacerMonitor.com.
A copy of the stipulation and the Debtor's budget is available at
https://bit.ly/3qyosLM from PacerMonitor.com.
The budget provides for $18,000 to $29,500 in total income and
$18,000 in total budgeted expenses.
About The South Edge, Inc.
The South Edge, Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Cal. Case No. 14-10176) on February 5,
2014. In the petition signed by JoAnn Claeyssens, vice president,
the Debtor disclosed up to $10 million in both assets and
liabilities.
Judge Alan Jaroslovsky oversees the case.
The Law Office of Gina R. Klump is the Debtor's counsel.
STARLIN LLC: Affiliates Tap Leech Tishman Robinson Brog as Counsel
------------------------------------------------------------------
175 Spring Street LLC and nine other affiliates of Starlin, LLC
seek approval from the U.S. Bankruptcy Court for the Southern
District of New York to employ Leech Tishman Robinson Brog, PLLC as
their bankruptcy counsel.
The nine affiliates are 610 West 46th Street LLC, 623 11th Avenue
LLC, 617 11th Avenue LLC, 616 11th Avenue LLC, 108 Merrick
Boulevard LLC, 613 11th Avenue LLC, 609 11th Avenue LLC, 616-620
West 46th Street LLC, and 533 West 27 Street Common Member LLC.
The Debtors require a bankruptcy counsel to:
a. provide legal advice with respect to the Debtors' powers and
duties under the Bankruptcy Code in the continued operation of
their business and management of their property;
b. negotiate, draft and pursue all documentation necessary in
the Debtors' Chapter 11 cases, including, without limitation, any
debtor-in-possession financing arrangements and the disposition of
the Debtors' assets by sale or otherwise;
c. prepare legal papers;
d. negotiate with creditors, prepare a plan of reorganization
and take the necessary legal steps to consummate a plan;
e. appear in court;
f. attend meetings and negotiate with representatives of
creditors, the Office of the U.S. Trustee and other parties;
g. provide legal advice regarding bankruptcy law, corporate law,
corporate governance, tax, litigation, and other issues attendant
to the Debtors' business operations;
h. take all necessary actions to protect and preserve the
Debtors' estates including prosecuting actions on the Debtors'
behalf, defending any action commenced against the Debtors, and
representing the Debtors in negotiations concerning litigation in
which they are involved, including objections to claims; and
i. perform other necessary legal services for the Debtors.
The firm will be paid at these rates:
Shareholders $500 to $800 per hour
Counsels $495 to $600 per hour
Associates $325 to $475 per hour
Paralegals $120 to $250 per hour
The firm will also be reimbursed for its out-of-pocket expenses.
Fred Ringel, Esq., a partner at Leech, 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:
Fred Ringel, Esq.
Leech Tishman Robinson Brog, PLLC
875 Third Avenue
New York, NY 10022
Tel: (212) 603-6300
Email: fringel@leechtishman.com
About Starlin LLC
Starlin, LLC and affiliates (collectively," Mezz Borrower Debtors")
sought protection under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. S.D.N.Y. Lead Case No. 22-10888) on June 28, 2022. The Mezz
Borrower Debtors are entities that own the equity interests in the
limited liability companies, limited partnerships or corporations
that are the owners of real property and improvements located
mainly in the Midtown West area of New York City.
The owner of the properties, 175 Spring Street LLC, 610 West 46th
Street LLC, 623 11th Avenue LLC, 617 11th Avenue LLC, 616 11th
Avenue LLC, 108 Merrick Boulevard LLC, 613 11th Avenue LLC, 609
11th Avenue LLC, 616-620 West 46th Street LLC (Bankr. S.D.N.Y. Case
Nos. 22-11228 to 22-11238) (collectively, "PropCo Debtors") and 533
West 27 Street Common Member LLC (Case No. 22-11239) have sought
Chapter 11 bankruptcy protection.
The Debtors have sought joint administration under Case No.
22-10888.
Judge Martin Glenn oversees the cases.
Fred B. Ringel, Esq., at Leech Tishman Robinson Brog, PLLC and
Getzler Henrich & Associates, LLC are the Debtors' legal counsel
and financial advisor, respectively.
SUMMIT II LLC: Starts Subchapter V Case
---------------------------------------
Summit II, LLC, filed for chapter 11 protection in the Middle
District of Florida. The Debtor elected on its voluntary petition
to proceed under Subchapter V of chapter 11 of the Bankruptcy
Code.
The Debtor reported debt of less than $10 million and said that
funds will be available to Unsecured Creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
Oct. 13, 2022, at 3:00 PM. U.S. Trustee (T/FM) will hold the
meeting telephonically. Call in Number: 866-910-0293. Passcode:
7560574.
Proofs of claim are due by Nov. 29, 2022.
Denlinger Property
The Debtor is in the business of buying and developing real estate.
The Debtor's business was established specifically to purchase a
170-acre property in Dade City, Pasco County, Florida from Harry
and Janet Denlinger (the "Denlinger Property"). The Debtor intends
on acquiring the Denlinger Property to improve and build out the
necessary improvements into a residential multi-lot subdivision and
sell the lots to D.R. Horton, Inc. ("DR Horton").
On or about November 18, 2020, the Denlingers and DR Horton entered
into a Land Purchase Contract for the sale of the Denlinger
Property to DR Horton, or its assigns, for $2,856,000. The
Denlingers and DR Horton subsequently entered into the First
Amendment to Land Purchase Contract dated January 12, 2021, and
Second Amendment to Land Purchase Contract dated May 3, 2021. The
Second Amendment increased the purchase price to
$2,906,000.
DR Horton then assigned the Denlinger LPC to the Debtor pursuant to
the Assignment & Assumption of Contract ratified June 11, 2021.
Thereafter, the Debtor entered into a Lot Purchase Agreement
contract to sell 418 lots to DR Horton for $31,350,000.00 (base
revenue before escalations) ("DR Horton LPA"). The construction
and improvements for 418 lots is estimated to cost approximately
$14,000,000. Such costs would be financed by issuing Florida
Community Development District Bonds (“CDD
Bonds”).
Dispute With Denlighers
Pursuant to the Denlinger LPC, DR Horton deposited $3,135,000.00
into escrow for the consummation of the Denlinger LPC. A condition
for closing on the Denlinger LPC required the Debtor to rezone the
Denlinger Property from an agricultural zoning designation to a
zoning consistent with a residential subdivision. The rezoning was
accomplished at a significant cost to the Debtor within the time
specified in the Denlinger LPC. Debtor was ready willing and able
to close, but without cause, the Denlingers refused to consummate
the closing.
On October 26, 2021, the Denlinger's filed a four count complaint
against the Debtor in Pasco County Circuit Court. The Complaint
seeks the following relief:
a. Count I – Declaratory Relief (Land Purchase Agreement was
terminated; First and Second Amendments are invalid; Assignment
Invalid.
b. Count II – Declaratory Relief (Assignment Agreement is
void ad initio).
c. Count III – Declaratory Relief (Count brought as an
alternative to Count I – Land Purchase Agreement was
terminated).
d. Count VI3 – Quiet Title
On December 20, 2021, DR Horton filed its Answer, Affirmative
Defenses and a one (1) count Counterclaim against the Denlingers
seeking declaratory relief that the contract and amendments are in
full force and effect.
On December 30, 2021, the Debtor filed a Motion to Stay Case
Pending Enforcement of Settlement and Supporting Memorandum seeking
to stay the pending state court case until the Bankruptcy Court
resolved Summit View's Motion to Enforce Settlement Agreement
("Motion to Stay"). The State Court scheduled a hearing on the
Motion to Stay for September 23, 2022.
The Denlingers sought to disqualify Debtor's counsel, Stearns
Weaver, but their motion to disqualify was denied. The Denlingers
than appealed the order denying their motion to disqualify. The
appeal remains pending with Florida's Second District Court of
Appeals. The Debtor will file a motion to lift the automatic stay
so that the appellate court can proceed with a decision on the
appeal
Removed LPC Litigation
The Debtor has removed the LPC Litigation to the Bankruptcy Court
and the removed case has been assigned Case No. 8-22-ap-00193 (Adv.
Doc No. 1). In the removed LPC Litigation, the Debtor will seek a
declaratory judgment requiring the Denlingers to abide by the terms
of the Denlinger LPC and consummate the sale of the Denlinger
Property to the Debtor. The Bankruptcy Court can more efficiently
and promptly dispose of the LPC Litigation. The LPC Litigation is
not complex and can be promptly decided by the Bankruptcy Court.
DR Horton's $3,135,000.00 remains in escrow pending the resolution
of the LPC Litigation. The Debtor owes multiple creditors an
aggregate of $436,335.43, which are the unpaid costs incurred to
date for the rezoning of the Denlinger Property. Interest rates
continue to climb. Although the market for residential homes
remains strong as of the time of filing, the Debtor is concerned
that additional delay associated with the LPC Litigation could harm
the Debtor's long-term prospects. The Chapter 11 filing will
resolve the LPC Litigation either by agreement (as occurred in
Summit View's Chapter 11 case) or by a ruling from the Bankruptcy
Court. The Bankruptcy Court is the best equipped Court to promptly
resolve the State Court Litigation.
About Summit II LLC
Summit II LLC is a limited liability company in Florida. Summit II
established specifically to purchase a 170-acre property in Dade
City, Pasco County, Florida from Harry and Janet Denlinger (the
"Denlinger Property").
Summit II LLC filed a petition for relief under Subchapter V of
Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla. Case No.
22-03844) on September 20, 2022. In the petition filed by Douglas
J. Weiland, ss manager, the Debtor reported assets and liabilities
between $1 million and $10 million.
Kathleen L DiSanto has been appointed as Subchapter V trustee.
The Debtor is represented by Alberto F Gomez, Jr., of Johnson Pope
Bokor Ruppel & Burns, LLP.
About Summit View
Summit View, LLC is a single asset real estate debtor (as defined
in 11 U.S.C. Section 101(51B)). Summit View owns the 135-acre
residential development project in Pasco County, Florida, which
consists of 406 home sites located at 13350 Happy Hill Road, Dade
City, Florida.
Summit View first sought Chapter 11 protection (Bankr. M.D. Fla.
Case No. 09-06495) on April 2, 2009. It again filed a Chapter 11
petition (Bankr. M.D. Fla. Case No. 19-10111) on Oct. 24, 2019.
At the time of the filing, the Debtor was estimated to have assets
of between $1 million and $10 million and liabilities of the same
range.
Johnson, Pope, Bokor, Ruppel & Burns, LLP serves as the Debtor's
bankruptcy counsel. The Debtor tapped Stearns Weaver Miller
Weissler Alhadeff & Sitterson P.A., Addison Law Office PA, and
Taitt Law, P.A. as its special counsel.
* * *
Summit View's Chapter 11 filing was caused primarily by actions
undertaken by the Denlingers to impede development at the Summit
View Property by unleashing litigation and falsely instigating an
effort to cause Dade City to revoke certain permits. The Denlinger
Property
is north of and adjacent to the Summit View Property.
After extensive litigation in the Summit View Bankruptcy Case, the
Denlingers, Summit View and Dade City, among others, finally
resolved their disputes on a "global basis" after a lengthy
mediation process conducted by Mediator Elizabeth Green in
September 2020.
As part of the Mediation Settlement and the "global" nature of the
settlement, the Denlingers and D.R. Horton, Inc. entered into the
Denlinger LPC.
On Dec. 15, 2020, Summit View filed a Motion to Approve Compromise
of Controversy by and between Summit View, JES Properties, Inc.,
Douglas J. Weiland, and Harry and Janet Delinger Pursuant to Rule
9019 of the
Federal Rules of Bankruptcy Procedure. On January 6, 2021, the
Court entered an Order Granting the Motion to Approve Compromise
(SVBC Doc. No. 255).
On March 17, 2021, the Court entered its Order Confirming Plan
(SVBC Doc. 301) (the "Confirmation Order") which confirmed Summit
View’s Amended Plan of Reorganization (SVBC Doc. No. 175), as
modified by the First Supplement to the Plan ("Supplement") (SVBC
Doc. No. 266).
After the Denlingers filed the Denlinger LPC Litigation on October
24, 2021, Summit View filed a Motion to Reopen its Chapter 11 case
on December 28, 2021 seeking to reopen the case in order to file a
Motion to Enforce the terms of the Mediated Settlement Agreement.
The Court entered an Order reopening Summit View’s Bankruptcy
Case on January 14, 2022 (SVBC Doc. No. 352).
On January 18, 2022, Summit View filed a Motion to enforce the
Mediation Settlement Agreement by and between Summit View and the
Denlingers (SVBC Doc. No. 353). The Bankruptcy Court held a
hearing on the Motion to Enforce on Feb. 23, 2022 and has taken the
matter under advisement.
SUNNY MILLS: U.S. Trustee Unable to Appoint Committee
-----------------------------------------------------
The U.S. Trustee for Region 21, until further notice, will not
appoint an official committee of unsecured creditors in the Chapter
11 case of Sunny Mills, LLC, according to court dockets.
About Sunny Mills
Sunny Mills, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 22-14770) on June 20,
2022, with as much as $1 million in both assets and liabilities.
Judge Scott M. Grossman oversees the case.
Marilyn L. Maloy, Esq., at Maloy Law Group, LLC is the Debtor's
legal counsel.
SUNSATION ENERGY: Commences Subchapter V Case
---------------------------------------------
Sunsation Energy Solutions, Inc., d/b/a Team Sunsation filed for
chapter 11 protection in the Middle District of Florida. The
Debtor elected on its voluntary petition to proceed under
Subchapter V of chapter 11 of the Bankruptcy Code.
The Debtor is a New Jersey company which was incorporated on April
18, 2019, and does business in Florida as Team Sunsation. The
Debtor sells and installs solar panel solutions to consumers.
As of Petition Date, the Debtor operates from 4628 Cypress Way S.,
St. Petersburg, Florida 33705, which it owns.
The Company's gross receipts in 2021 were $110,000, compared to
$248,000 in 2020.
The Debtor filed for bankruptcy due to the foreclosure proceedings
initiated by Shorecrest Investment Fund against the Debtor’s real
estate holding.
According to court documents, Sunsation Energy Solutions listed
less than $1 million in debt and between 1 and 49 unsecured
creditors. The petition states that funds will be available to
unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
Oct. 14, 2022, at 11:00 AM. U.S. Trustee (T/FM) will hold the
meeting telephonically. Call in Number: 866-910-0293. Passcode:
7560574.
Proofs of claim are due by Nov. 28, 2022.
About Sunsation Energy Solutions
Sunsation Energy Solutions Inc., doing business as Team Sunsation,
is a renewable energy company with main focus on solar energy.
On Sept. 19, 2022, Sunsation Energy filed a petition for relief
under Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr.
M.D. Fla. Case No. 22-03806). In the petition filed by Susan
Graham, as president, the Debtor reported assets between $500,000
and $1 million and estimated liabilities between $500,000 and $1
million.
Michael C Markham has been appointed as Subchapter V trustee.
The Debtor is represented by Buddy D. Ford, P.A.
SUNSATION ENERGY: Seeks to Tap Buddy Ford as Bankruptcy Counsel
---------------------------------------------------------------
Sunsation Energy Solutions, Inc. seeks approval from the U.S.
Bankruptcy Court for the Middle District of Florida to employ the
law firm of Buddy D. Ford, PA as its bankruptcy counsel.
The firm will render these legal services:
(a) analyze the financial situation, and render advice and
assistance to the Debtor in determining whether to file a petition
under Title 11, United States Code;
(b) advise the Debtor regarding its powers and duties in the
continued operation of the business and management of the estate's
property;
(c) prepare and file the petition, schedules of assets and
liabilities, statement of affairs, and other documents required by
the court;
(d) represent the Debtor at the Section 341 creditors'
meeting;
(e) advise the Debtor with respect to its responsibilities in
complying with the United States Trustee's Operating Guidelines and
Reporting Requirements and with the rules of the court;
(f) prepare legal papers;
(g) protect the interest of the Debtor in all matters pending
before the court;
(h) represent the Debtor in negotiation with its creditors in
the preparation of the Chapter 11 Plan; and
(i) perform all other legal services for the Debtor which may
be necessary herein.
The hourly rates of the firm's counsel and staff are as follows:
Buddy D. Ford, Esq. $450
Senior Associate Attorneys $400
Junior Associate Attorneys $350
Senior Paralegal Services $150
Junior Paralegal Services $100
In addition, the firm will seek reimbursement for expenses
incurred.
Prior to the commencement of this Chapter 11 case, the Debtor paid
the firm an advance fee of $10,000.
Buddy Ford, 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:
Buddy D. Ford, Esq.
Jonathan A. Semach, Esq.
Heather M. Reel, Esq.
Buddy D. Ford, PA
9301 West Hillsborough Avenue
Tampa, FL 33615-3008
Telephone: (813) 877-4669
Email: Buddy@tampaesq.com
Jonathan@tampaesq.com
Heather@tampaesq.com
About Sunsation Energy Solutions
Sunsation Energy Solutions, Inc. sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 22-03806) on
Sept. 19, 202, with up to $1 million in both assets and
liabilities. Susan Graham, president of Sunsation Energy Solutions,
signed the petition.
Judge Catherine Peek McEwen oversees the case.
Buddy D. Ford, PA serves as the Debtor's counsel.
TCN LIBERTY: Capital Contribution to Fund Plan Payments
-------------------------------------------------------
TCN Liberty Management Inc., filed with the U.S. Bankruptcy Court
for the Eastern District of New York a Disclosure Statement in
support of Plan of Reorganization dated September 22, 2022.
The Debtor owns real property located at 676 Liberty Avenue,
Brooklyn, NY 11208 (Lot 12, Block 3985, the "Property"). The
Debtor's business generally involves purchasing real property,
satisfying mortgages and notes with respect to those properties,
and developing the properties to obtain the projected future value.
Prior to the Petition Date, the Debtor purchased the Property from
the owners. At the time of purchase, the Debtor did not satisfy the
claims of the Secured Creditor held against the Property, e.g., it
purchased the Property subject to the mortgages held by the Secured
Creditor against the Property, and did not purchase the note
evidencing the debt held by the Secured Creditor.
There is one lien believed to be held by the Secured Creditor
against the Property:
* A mortgage held by Deutsche, as Trustee ("DB"), with an
address at 60 Wall Street NY, NY 10005, in the original principal
amount of $649,042 with interest at the initial rate of 6.00% per
cent per annum, plus other interests, costs, fees and charges in
unknown amounts. The current amount believed to be owed to DB under
its loan documents is, as of September 22, 2022 - $649,042, plus a
per diem accrual rate of $106.69
The Debtor commenced its case in order to stay an imminent
foreclosure sale and to restructure the debt on the Property. In
order to provide the Court with evidence of the value of the
Property, the Debtor obtained the Appraisal, which values the
Property at $640,000.
Class I consists of the Claim of DB. The secured claim held by DB
(a) in the aggregate amount of $649,042, plus (b) a per diem
accrual rate of $106.62, consisting of the amounts to which it is
entitled under § 506 of the Code. Class I Claims shall be
satisfied by payment of the settled amount of $640,000, in Cash, of
the full allowable amount of Deutsche's Claim, as may be adjusted
at the Closing. This Class is unimpaired.
Class II consists of (1) the unsecured claim held by DB (a) in the
aggregate amount of $806,786.66, plus (b) a per diem accrual rate
of $106.69, consisting of the amounts to which it is entitled under
§ 506 of the Code as well as (2) the unsecured claim of BNYH11,
which has a value of $1. The unsecured claim (1) held by DB shall
be satisfied by the settled amount of $1, in Cash, of the full
allowable amount of that Claim, as may be adjusted at the Closing
and (2) held by BNYH11 shall be paid in full settlement thereof.
This Class is impaired.
The funds necessary for implementation of the Plan will be provided
by the Capital Contribution. At least one week before the
Confirmation Hearing, (a) the funds necessary for implementation of
this Plan shall be provided to counsel for the Debtor to be held in
escrow or (b) proof of the availability of such funds shall be
filed with the Court.
A full-text copy of the Disclosure Statement dated September 22,
2022, is available at https://bit.ly/3RaSEr6 from PacerMonitor.com
at no charge.
Counsel for the Debtor:
Leo Jacobs, Esq.
Jacobs P.C.
450 Lexington Avenue, 4th Floor
New York, NY 10017
Phone: (718) 772-8704
Email: Leo@jacobspc.com
About TCN
Liberty
New York-based TCN Liberty Management, Inc. filed its voluntary
petition for relief under Chapter 11 of the Bankruptcy Code (Bankr.
E.D.N.Y. Case No. 22-41452) on June 22, 2022, listing up to $1
million in assets and up to $10 million in liabilities. Avraam
Boruchov, chief executive officer, signed the petition.
Judge Nancy Hershey Lord presides over the case.
Leo Jacobs, Esq., at Jacobs P.C. represents the Debtor as counsel.
TREETOP DEVELOPMENT: Sues Skylark Over Loan-to-Own Scheme
---------------------------------------------------------
Treetop Development LLC, a bankrupt developer of an unfinished Los
Angeles mega-mansion run by celebrity developer Mohamed Hadid, sued
its lender, Skylark Capital Management, LLC, for intentionally
withholding financing in a bid to take over the property.
Treetop's lawsuit, filed Thursday in the US Bankruptcy Court for
the Central District of California, says Skylark Capital, a
California limited liability company, perpetrated a "loan to own
scheme" in order to obtain unlawful control, and ultimately full
ownership of, Debtor's highly valuable 27-acre property in Beverly
Hills, California.
Particularly, Skylark agreed to lend Treetop $92,775,000 to pay off
current debt on the Debtor's property (of roughly $20,000,000), and
then to pay for the construction development on the Property with
the remaining funds. This loan was so that Treetop could then sell
the later developed Property for a profit. Skylark promised to
lend the same, but Skylark never had that amount of funds to lend
(and/or, never intended to release that amount of funds to
Treetop). Instead, Skylark agreed to the loan terms, allowed
enough funds to be released so as to pay off the prior debt, and
then shortly thereafter, refused to pay the remaining construction
fund draw requests (either by refusing to fund timely, refusing to
fund at all on certain draws, or refusing to fund such draw
requests in full). This in turn led to the construction project
not being timely completed and Treetop unable to timely pay the
subcontractors performing the work. Thus, mechanic's liens for
subcontractor work were filed against the Property and the project
was not finalized in time to be sold for a profit when the loan
repayment date came due. In all, Skylark only ended up releasing
around $29,085,445 out of the $92,775,000 of funds that were
promised to be released to Plaintiff ($20,000,000 of which was for
the underlying debt and only a little more than $9,000,000 being
released during the construction phase). However, Skylark,
inexplicably, has attempted to claim that they are now owed more
than double that amount (or at least $63,054,044.56) by Treetop.
Skylark's intent for the loan to own scheme are also demonstrated
by the fact that Skylark, through its manager Zach Vella (who
should have been mere disinterested construction lenders), early
on, were scheming to work together with at least one neighboring
lot owner to jointly develop the Property after Skylark would later
foreclose upon the Property (and in such act, foreclose out the
claims of the unwitting subcontractors).
Treetop prays, among other things, for an order from the Court
declaring the Loan Agreements invalid on the grounds of fraud, and
rescinding the Loan Agreements. The Debtor also seeks damages
sufficient to compensate the injury it suffered in an amount to be
proved at trial.
Special Litigation Counsel for plaintiff Treetop Development, LLC:
David J. Williams
Quincy J. Chuck
M ASCHOFF BRENNAN
100 Spectrum Center Drive, Suite 1200
Irvine, California 92618
Telephone: (949) 202-1900
Facsimile: (949) 453-1104
E-Mail: dwilliams@mabr.com
E-Mail: qchuck@mabr.com
About Treetop Development
Mohamed Anwar Hadid is a Jordanian-American real estate developer.
He is known for building luxury hotels and mansions, mainly in the
Bel Air neighbourhood of Los Angeles and the city of Beverly Hills,
Calif.
Hadid's 901 Strada, LLC, based in Los Angeles, CA, filed a Chapter
11 petition (Bankr. C.D. Cal. Case No. 19-23962) on Nov. 27, 2019.
Strada was entity formed for the purpose of developing and
ultimately selling the real property perched on a hillside, and
with views to the ocean, located at 901 Strada Vecchia Road, Bel
Air, California. 901 Strada sought bankruptcy after the City of
Los Angeles revoked the building permits and a court ordered the
partially finished structures to be towrn down.
Hadid's Coldwater Development, LLC, and Lydda Lud, LLC, filed for
Chapter 11 bankruptcy in January 2021 (Bankr. C.D. Cal. Lead Case
No. 21-10335). Coldwater and Lydda Lud owned six highly prized,
vacant, residential estate lots, totaling 65.63 acres located in
the Santa Monica Mountains above Beverly Hills, California. The
debtors said the property was worth $130 million but was embroiled
in a dispute with the activist group "Friends of the Hastain
Trail", which has pushed for a recreational trail easement through
the property. The cases have since been converted to Chapter 7
liquidation and the property sold by the bankruptcy trustee for
just $1.7 million in April 2022.
Hadid's Treetop Development LLC, owner of a 9650 Cedarbrook Drive
in Beverly Hills, California, which is a planned 78,000-square-foot
home that's currently on the market for $250 million, sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
C.D. Cal. Case No. 22-14165) on August 2, 2022. In the petition
filed by Mohamed A. Hadid, as manager, the Debtor reported assets
between $100 million and $500 million and liabilities between $10
million and $50 million.
Lewis R Landau, of LeWis R. Landau Attorney at law, is the Debtor's
counsel.
VIRGINIA TRUE: Unsecureds' Recovery Lowered to 70% in Creditor Plan
-------------------------------------------------------------------
Diatomite Corporation of America, Anthony Cipollone, and Domenick
Cipollone submitted a Fourth Amended Disclosure Statement in
connection with the Joint Fourth Amended Chapter 11 Plan for
Virginia True Corporation dated September 22, 2022.
The Debtor's sole asset is vacant land located in Virginia. The
Debtor's sole purpose is the ownership, development, and other
exploitation of such land. Diatomite sold the land to the Debtor
partly through seller financing (i.e., a note). The Debtor did not
pay on the note.
Diatomite's claim is not presently the subject of any claim
objection and this Creditor Plan has come as a consequence of
extensive negotiation between Diatomite and the Cipollones. As of
the date hereof, Diatomite is the Debtor's largest general
unsecured creditor with a claim in the asserted amount of
approximately $7.28 million. The Plan Proponents estimate that
Diatomite's claim accounts for approximately 95% of the General
Unsecured Claims.
Through hard fought settlement discussions, Diatomite and the
Cipollones have created a path forward that all but guarantees a
meaningful recovery for holders of General Unsecured Claims. More
specifically, Diatomite has agreed to contribute $4.3 million of
Cash to the Debtor's estate to fund the expenses of administering
the Chapter 11 Case and, after the payment of such expenses,
distributions for General Unsecured Creditors. In exchange,
Diatomite will be granted ownership of the Reorganized Debtor.
Of the $4.3 million of funding, the Cipollones, and Diatomite
estimate that Chapter 11 expenses will be approximately $1,000,000,
in the aggregate, after applicable objections to professional fee
applications are fully prosecuted. The Debtor estimates that if the
Creditor Plan were to be confirmed on November 9, 2022, total
Administrative Expense Claims would total not less than $1,319,000.
Accordingly, between approximately $3 and $3.3 million should
remain for the purpose of settling matters with the Cipollones and
to provide a material distribution to holders of Allowed General
Unsecured Claims.
Of the estimated $3.3 million remaining, $3 million is specifically
earmarked for the Cipollones (the Secured Claim of which is deemed
Allowed pursuant to the terms of the Creditor Plan); $2 million
will be paid immediately on the Effective Date and $1 million will
be paid one year from the Effective Date of the Plan.
As part of the Creditor Plan Funding, Diatomite has agreed to
ensure that no less than $100,000 is available for distribution to
Holders of General Unsecured Claims, ensuring a minimum estimated
23% recovery, irrespective of the ultimate amount of Administrative
Expense Claims. The Liquidation Analysis, provides a detailed list
of the assumptions underlying the estimated recoveries contemplated
by the Creditor Plan and certain risks associated with those
assumptions, including the risk that Administrative Expense Claims
will exceed the Plan Proponents' estimates. Parties in interest are
encouraged to read this Disclosure Statement, including the
Liquidation Analysis, in its entirety.
The Plan Proponents assume that the General Unsecured Claims pool
is approximately $428,000, exclusive of Diatomite's General
Unsecured Claim, and that administrative costs of the Chapter 11
are approximately $1,000,000, then under the Creditor Plan, General
Unsecured Claims are slated to received approximately 70 cents for
each 1 dollar of claim on account of an Allowed General Unsecured
Claim, depending on the ultimate amount of Allowed Administrative
Expense Claims. Due to Diatomite's commitment in the Creditor Plan
Funding, irrespective of the ultimate amount of Allowed
Administrative Expense Claims, and assuming that the insider claims
are successfully subordinated, General Unsecured Creditors are
guaranteed no less than 23 cents for each 1 dollar of their
respective Allowed General Unsecured Claim.
Some key features of the Plan include the following: (i) a
reduction in the Cipollones' claim to $3 million, $2 million of
which will be paid by Diatomite on the Plan's effective date, and a
further $1 million to be paid one year therefrom; (ii) the
elimination of further litigation costs; (iii) Diatomite's
commitment to pay all administrative expense claims of the
Bankruptcy Case; and (iv) Diatomite's receipt of the equity of the
Debtor in exchange for waiving its $7.28 million dollar claim and
providing the cash payments, including an estimated approximately
$300,000 for other general unsecured claimholders, which will
result in an estimated 70% payoff for General Unsecured Creditors.
The Debtor now believes that, under the facts and circumstances, a
sale of the Property is the appropriate course of action. Debtor
proposes to sell the Property at a bankruptcy auction to Fones
Cliff Development, LLC (the "Stalking Horse Bidder") for $4.2
million, pursuant to a Purchase and Sale Agreement, subject to
higher and better offers. The Debtor has also filed a proposed
Chapter 11 Plan of Liquidation under which, if confirmed, the
proceeds of the sale of the Property would be distributed to
creditors in order of statutory priority.
Fernandez and Kleinhendler are two of the three members of the
Stalking Horse Bidder, holding a minority interest in such Stalking
Horse Bidder. The third member is Pan American, the third party
that previously sought to acquire the Cipollone Claim. The Stalking
Horse Bidder's $4.2 million (opening) offer is predicated on the
Debtor's $4 million valuation of the Property. However, the Debtor
believes that the ultimate sale price achieved will be higher as a
result of anticipated competitive bidding.
While the Debtor scheduled the Property as having a value of $18.3
million and Diatomite had previously obtained an appraisal of the
Property at $8.2 million as of October 11, 2019, the Debtor
believes that the market value of the Property has fallen
precipitously as a result of, among other things, the negative
economic effects of the COVID-19 pandemic, the opposition expressed
by environmentalists to any development of the Property, the
current state of the real estate and capital markets (including
rising interest rates), and current overall economic conditions
(including inflation and risks of a recession). The Plan Proponents
disagree with the Debtor's estimation of the Property's value and
the marketing process will provide a test of such value.
The Plan Proponents believe that the Debtor's proposed Plan of
liquidation is patently unconfirmable and have filed objections to
approval of the Debtor's amended Disclosure Statement and Plan of
liquidation alleging, inter alia, it does not provide appropriate
disclosures regarding the status and likelihood of success in the
Adversary Proceeding and it improperly classifies and proposes to
give preferential treatment to the DEQ Claim. However, the Debtor
has decided not to pursue approval of its Disclosure Statement
pending the outcome of the sale of the Property. As such, the
Debtor, as of the date hereof, has not filed a formal submission
responding to the Plan Proponents' objections.
Class 2(a) consists of General Unsecured Claims. In exchange for
exchange Diatomite's treatment as set forth in Class 2(b),
Diatomite will advance funds as Creditor Plan Funding and, after
all senior Allowed Claims are paid in full, Holders of Allowed
General Unsecured Claims in Class 2(a), excluding the Plan
Proponents' Unsecured Claims (Class 2(b)), shall be paid their Pro
Rata Share of the remaining portion of such Creditor Plan Funding
up to the full Allowed amount of their Claims. This Class will
receive a distribution of 70% of their allowed claims.
Class 2(b) consists of Plan Proponents' Unsecured Claims. The
Diatomite Claim shall be deemed an Allowed Claim and is the only
claim in Class 2(b). In exchange for advancing funds as Creditor
Plan Funding to pay: (i) all Allowed Administrative Expense Claims,
Allowed Compensation and Reimbursement Claims, Allowed Priority Tax
Claims, and United States Trustee Fees that are Allowed as of the
Effective Date; (ii) distributions to the Holders of Allowed
General Unsecured Claims (other than the Plan Proponents); and
(iii) $2 million Cash to the Cipollones, Diatomite shall receive
100% of the New Equity of the Reorganized Debtor.
A full-text copy of the Fourth Amended Disclosure Statement dated
September 22, 2022, is available at https://bit.ly/3dKpLnR from
PacerMonitor.com at no charge.
Counsel for Diatomite Corporation:
PACK LAW
51 Northeast 24th Street, Suite 108
Miami, Florida 33137
Joseph A. Pack, Esq.
212-949-9300
Co-Counsel to Anthony Cipollone and Domenick Cipollone:
LAW OFFICES OF AVRUM J. ROSEN, PLLC
38 New Street
Huntington, New York 11743
Avrum J. Rosen, Esq.
Nico G. Pizzo, Esq.
631-423-8527
About Virginia True Corporation
Virginia True Corporation, a New York-based golf resort owner and
developer, sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. E.D.N.Y. Case No. 19-42769) on May 3, 2019. At the
time of the filing, the Debtor disclosed between $10 million and
$50 million in both assets and liabilities.
Judge Nancy Hershey Lord oversees the case.
Pick & Zabicki LLP is the Debtor's legal counsel.
VOYAGER DIGITAL: Alameda to Repay $200 Million in Ether and Bitcoin
-------------------------------------------------------------------
Suvashree Ghosh of Bloomberg News reports that crypto billionaire
Sam Bankman-Fried's Alameda Research will return about $200 million
worth of Bitcoin and Ether it had borrowed from insolvent Voyager
Digital Ltd., according to a court filing from Voyager.
The agreement to return the crypto was unveiled after Voyager's
request to have the loan to Alameda repaid was granted by a New
York bankruptcy court, according to a separate filing late Monday,
September 19, 2022.
Alameda, the trading firm co-founded by Bankman-Fried, will pay
about 6,553 Bitcoins toward principal and accrued fees and about
51,000 Ether by Sept. 30, 2022, the filing showed.
About Voyager Digital Holdings
Based in Toronto, Canada, Voyager Digital Holdings Inc. --
https://www.investvoyager.com/ -- runs a cryptocurrency platform.
Voyager claims to offer a secure way to trade over 100 different
crypto assets using its easy-to-use mobile application. Through its
subsidiary Coinify ApS, Voyager provides crypto payment solutions
for both consumers and merchants around the globe.
Voyager Digital Holdings Inc. and two affiliates sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead
Case No. 22-10943) on July 5, 2022. In the petition filed by
Stephen Ehrlich, as chief executive officer, the Debtor estimated
assets and liabilities between $1 billion and $10 billion.
The Debtors tapped Kirkland & Ellis, LLP as general bankruptcy
counsel; Berkeley Research Group, LLC as financial advisor; Moelis
& Company as investment banker; and Consello Group as strategic
financial advisor. Stretto, Inc., is the claims agent.
VOYAGER DIGITAL: Seeks to Hire Marcum LLP as Auditor
----------------------------------------------------
Voyager Digital Holdings, Inc. and its affiliates seek approval
from the U.S. Bankruptcy Court for the Southern District of New
York to employ Marcum, LLP as auditor.
The firm's services include:
(a) auditing the consolidated statements of financial position
of Voyager Digital Ltd. as of June 30, 2022, and the related
consolidated statements of loss and comprehensive loss, changes in
equity and cash flows for the year then ended, and notes to the
financial statements which will be filed with the Toronto Stock
Exchange; and
(b) taking necessary steps related to the audit.
Marcum will be paid at these rates:
Partner $550 to $745 per hour
Director/Senior Manager $405 to $650 per hour
Manager $320 to $520 per hour
Supervisors $230 to $385 per hour
Senior/Staff $165 to $265 per hour
The firm will also be reimbursed for its out-of-pocket expenses.
Prior to the Debtors' Chapter 11 filing, Marcum was paid monthly
progress payments and currently holds a retainer of $668,000, which
has not been applied to the outstanding unbilled work in the amount
of $398,847 related to the services for the period from March to
July 2022. The Debtors seek authority to allow the firm to apply
the outstanding unbilled amount against the retainer immediately
upon its retention to continue work.
Edward Bechold, a partner at Marcum LLP, 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:
Edward F. Bechold
Marcum LLP
730 Third Avenue 11th Floor
New York, NY 10017
Tel: (212) 485-5500
Fax: (212) 485-5501
Email: Edward.bechold@marcumllp.com
About Voyager Digital Holdings
Based in Toronto, Canada, Voyager Digital Holdings Inc. --
https://www.investvoyager.com/ -- runs a cryptocurrency platform.
Voyager claims to offer a secure way to trade over 100 different
crypto assets using its easy-to-use mobile application. Through its
subsidiary Coinify ApS, Voyager provides crypto payment solutions
for both consumers and merchants around the globe.
Voyager Digital Holdings and two affiliates sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case
No. 22-10943) on July 5, 2022. In the petition filed by Stephen
Ehrlich, as chief executive officer, Voyager Digital Holdings
listed $1 billion to $10 billion in both assets and liabilities.
The Debtors tapped Kirkland & Ellis as bankruptcy counsel; Berkeley
Research Group, LLC and Consuelo Group as financial advisors;
Moelis & Company as investment banker; Grant Thornton, LLP as tax
advisor; and Marcum, LLP as auditor. Stretto, Inc. is the claims
agent.
The U.S. Trustee for Region 2 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases on
July 19, 2022. The committee tapped McDermott Will & Emery, LLP as
bankruptcy counsel; Cassels Brock & Blackwell, LLP as Canadian
counsel; and FTI Consulting, Inc. as financial advisor.
VOYAGER DIGITAL: Taps Grant Thornton as Tax Advisor
---------------------------------------------------
Voyager Digital Holdings, Inc. and its affiliates seek approval
from the U.S. Bankruptcy Court for the Southern District of New
York to employ Grant Thornton LLP as tax advisor.
The Debtors require a tax advisor to:
(a) prepare federal and state corporate income tax returns for
the taxable years ending Dec. 31, 2021, and June 30, 2022;
(b) assist the Debtors with an initial assessment of how the
Debtors' tax revenue recognition methods of accounting may be
impacted by Revenue Procedure 2021-34;
(c) assist in the computation of book-to-tax differences for
"Schedule M" items;
(d) identify any "true-ups" in prior year book to tax
differences;
(e) preliminarily calculate a current income tax liability or
asset for the estimated income taxes payable or refundable at the
end of the reporting year;
(f) preliminarily calculate deferred income tax liabilities and
assets for the estimated future income tax effects attributable to
temporary differences and carryforwards existing at the end of the
applicable reporting year;
(g) assist management in the evaluation of the necessity of a
valuation allowance, if any;
(h) assist management with uncertain tax position reporting by
performing certain services;
(i) assist management in preliminarily calculating income tax
expense for the applicable reporting year;
(j) prepare journal entries, as may be necessary, to conform to
books and records to the preceding, preliminary calculations for
management's review or approval;
(k) assist management in drafting the income tax footnotes to
the financial statements;
(l) discuss, if approved by management and necessary in the
circumstances, Grant Thornton's services with an independent
auditor;
(m) assist management in accounting for income taxes during the
interim period occurring during the year ending June 30, 2023;
(n) calculate the estimated annual effective tax rate applicable
to ordinary income or loss from continuing operations in each
interim period; and
(o) preliminarily compute the income tax (or benefit) applicable
to significant, unusual, or infrequently occurring items,
discontinued operations, or other comprehensive income.
The firm will be paid at these rates:
Partner/Managing Director $1,120 per hour
Senior Manager/Director $955 per hour
Manager $835 per hour
Senior Associate $605 per hour
Associate $415 per hour
The firm will also be reimbursed for its out-of-pocket expenses.
During the 90-day period prior to the petition date, the firm
received $40,230 from the Debtors for professional services
performed and expenses incurred. As of the petition date, the
Debtors owed Grant Thornton the sum of $5,475, however, the firm
agreed to waive the amount as a condition to it being retained by
the Debtors.
Adam Lehmann, a partner at Grant Thornton, 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:
Adam Lehmann
Grant Thornton LLP
90 State House Square, 10th Floor
Hartford, CT 06103
Tel: (617) 723-7900
Fax: (617) 723-3640
Email: adamlehmann@grantthorton.com
About Voyager Digital Holdings
Based in Toronto, Canada, Voyager Digital Holdings Inc. --
https://www.investvoyager.com/ -- runs a cryptocurrency platform.
Voyager claims to offer a secure way to trade over 100 different
crypto assets using its easy-to-use mobile application. Through its
subsidiary Coinify ApS, Voyager provides crypto payment solutions
for both consumers and merchants around the globe.
Voyager Digital Holdings and two affiliates sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case
No. 22-10943) on July 5, 2022. In the petition filed by Stephen
Ehrlich, as chief executive officer, Voyager Digital Holdings
listed $1 billion to $10 billion in both assets and liabilities.
The Debtors tapped Kirkland & Ellis as bankruptcy counsel; Berkeley
Research Group, LLC and Consuelo Group as financial advisors;
Moelis & Company as investment banker; Grant Thornton, LLP as tax
advisor; and Marcum, LLP as auditor. Stretto, Inc. is the claims
agent.
The U.S. Trustee for Region 2 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases on
July 19, 2022. The committee tapped McDermott Will & Emery, LLP as
bankruptcy counsel; Cassels Brock & Blackwell, LLP as Canadian
counsel; and FTI Consulting, Inc. as financial advisor.
WC BRAKER: Case Trustee Wins Cash Collateral Access
---------------------------------------------------
The U.S. Bankruptcy Court for the Western District of Texas
authorized Dawn Ragan, the Chapter 11 trustee for WC Braker
Portfolio, LLC to, among other things, use collateral and provide
adequate protection on an interim basis.
The Trustee needs to use cash to pay for services necessary to
maintain and operate the Debtor's Properties, including
landscaping, trash, utilities, and other expenses to operate the
Properties, meet the Debtor's obligation to tenants, and to pay
administrative costs of the Debtor's Chapter 11 Case.
On February 28, 2019, the Debtor, as borrower and JPMorgan Chase
Bank, National Association, as lender, entered into the Loan
Agreement and the Debtor, as borrower, executed the Promissory Note
pursuant to which JPMorgan agreed to make a loan in the principal
amount of $71 million to the Debtor. The Debtor used the proceeds
of the Loan to refinance 13 low-rise office buildings and a nearby
retail center that it owned, all located in Austin, Texas.
On April 29, 2022, ATX acquired the Loan from JPMorgan.
ATX, as the successor to JP Morgan, asserts that all obligations
under the Prepetition Loan Agreement, and the Prepetition
Promissory Note are secured by first-priority liens on the
Properties, and that pursuant to that certain Cash Management
Agreement, dated February 28, 2019, between Debtor, as Borrower,
JPMorgan, as Lender, and Wells Fargo Bank, N.A., as Agent, a
first-priority security interest in all rents deposited into a
lockbox account, and that all of Debtor's cash and cash equivalents
constitute cash collateral with respect to the Loan.
As of the Petition Date, the Debtor was indebted to the Prepetition
Secured Party in the aggregate amount of $72,870,133, consisting
of:
i) principal amount $71,000,000,
ii) $1,836,792 in accrued and unpaid interest with respect
thereto, and
iii) $33,341 in reasonable fees, costs, premiums, expenses
allowable under the Loan Documents.
Since the Debtor's cash is derived from rents and asserted as cash
collateral of ATX, and is currently being held in the Chase Reserve
Account held by ATX, the Trustee has no ability to operate or
restructure the Debtor absent use of cash collateral.
The Prepetition Secured Party is currently holding approximately
$10,200,368 in trust for the Debtor as of June 30 in an account at
JP Morgan Chase Bank, N.A. in the name of ATX Braker SR, LLC. The
Trustee has requested the Prepetition Secured Party to provide the
Trustee with viewing access to the Chase Reserve Account.
As adequate protection, the Prepetition Secured Party is granted
valid, binding, continuing, enforceable, fully-perfected,
non-avoidable, first-priority senior replacement security interests
in and liens on the Prepetition Collateral and all tangible and
intangible post-petition property related to the Properties in
which the Debtor has an interest and allowed superpriority
administrative expense claims against the Debtor ahead of and
senior to any and all unsecured claims and administrative expense
claims to the extent of any Diminution in Value.
The Prepetition Secured Party is also granted adequate protection
payments as follows: (i) upon entry of the Order, the first such
adequate protection payment will be paid, in kind, in an amount
equal to the sum of all accrued and unpaid interest due and payable
under the Prepetition Loan Agreement from the date of the last
interest payment made by the Debtor under the Prepetition Loan
Agreement through and including the Petition Date, calculated at
the default rate set forth in the Prepetition Loan Agreement, and
(ii) on the last business day of each calendar month thereafter,
each such adequate protection payment will be paid in cash, in an
amount comprising all accrued and unpaid interest, incurred
following the Petition Date, with interest payable to the
Prepetition Secured Party under the Prepetition Loan Agreement
calculated at the default rate set forth in the Prepetition Loan
Agreement.
As further adequate protection, the Trustee will pay in full: (i)
in kind upon entry of the Order, the reasonable, documented fees,
expenses, and disbursements incurred by the Prepetition Secured
Party arising prior to the Petition Date; and (ii) in cash, on a
monthly basis, within five business days after receipt by counsel
for the Trustee of invoices therefor, the reasonable and documented
fees, expenses, and disbursements incurred by Prepetition Secured
Party arising subsequent to the Petition Date.
The Trustee's right to use cash collateral on a consensual basis
will terminate on the earlier of: (x) September 30, 2022, unless
extended by agreement of the Trustee and Prepetition Secured Party
and (y) if an Event of Default occurs and remains uncured for more
than five business days following the delivery to counsel to the
Trustee and the Debtor and the filing with the Court of written
notice declaring that the Trustee's right to use cash collateral
has been terminated by the Prepetition Secured Party.
A copy of the order and the Debtor's budget is available at
https://bit.ly/3RAOHwJ from PacerMonitor.com.
The budget provides for total estimated disbursements, on a monthly
basis, as follows:
$179,347 for June 2022;
$172,303 for July 2022;
$415,866 for August 2022; and
$256,640 for September 2022.
About WC Braker Portfolio
WC Braker Portfolio is primarily engaged in renting and leasing
real estate properties. The Debtor filed Chapter 11 Petition
(Bankr. W.D. Tex. Case No. 22-10293) on May 2, 2022.
Hon. Tony M. Davis oversees the case.
Todd Headden, Esq., at Hayward PLLC is the Debtor's counsel.
In the petition signed by Natin Paul, authorized signatory, the
Debtor disclosed $100 million to $500 million in assets and $50
million to $100 million in liabilities.
ATX Braker SR, LLC, as mortgage lender, is represented by Liz
Boydston, Esq. and Stephen P. McKitt, Esq. at Polsinelli PC and
Mitchell A. Karlan, Esq. and Keith R. Martorana, Esq. at Gibson,
Dunn & Crutcher LLP.
WEIRD VENDING: Wins Cash Collateral Access Thru Nov 7
-----------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida,
Orlando Division, authorized Weird Vending, LLC to use cash
collateral on an interim basis through November 7, 2022.
The Debtor is permitted to use cash collateral to pay: (a) amounts
expressly authorized by the Court, including payments to the
Subchapter V Trustee; (b) the current and necessary expenses set
forth in the budget and (c) additional amounts as may be expressly
approved in writing by Vend Lease.
Secured creditors that assert an interest in the cash collateral
will have a perfected post-petition lien against the 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 documents as may otherwise be required under applicable
non-bankruptcy law.
The Debtor will maintain insurance coverage for its property in
accordance with the obligations under all applicable loan and
security documents.
A final hearing on the matter is scheduled for November 1 at 10:30
a.m.
A copy of the order and the Debtor's budget is available at
https://bit.ly/3d7eUEc from PacerMonitor.com.
The budget provides for total expenses, on a weekly basis, as
follows:
$50,326 for the week starting September 5, 2022;
$50,895 for the week starting September 12, 2022;
$50,729 for the week starting September 19, 2022;
$50,729 for the week starting September 26, 2022;
$51,632 for the week starting October 3, 2022;
$53,522 for the week starting October 10, 2022;
$50,308 for the week starting October 17, 2022;
$56,680 for the week starting October 24, 2022;
$50,845 for the week starting October 31, 2022; and
$53,610 for the week starting November 7, 2022.
About Weird Vending, LLC
Weird Vending, LLC is a closely held Florida limited liability
company organized on May 29, 2020. It operates a vending machine
company that specializes in the placement of vending machines
carrying unique, nostalgic, and uncommon products designed to
provide entertainment value to patrons of bars, restaurants and
other social establishments. Weird Vending has deployed 81 vending
machines in four primary locations which include Orlando; Tampa/St.
Petersburg/Sarasota; Dallas, Texas; and Denver, Colorado.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 22-02772) on August 2,
2022. In the petition signed by Michael Williams, president the
Debtor disclosed up to $500,000 in assets and up to $1 million in
liabilities.
Judge Grace E. Robson oversees the case.
Daniel A. Velasquez, Esq., at Latham Luna Eden and Beudine LLP is
the Debtor's counsel.
[*] Credit Suisse Reaches $32.5M Deal With Investors
----------------------------------------------------
Reuters reports that Credit Suisse Group AG (CSGN.S) reached a
$32.5 million settlement to resolve a lawsuit accusing the Swiss
bank of misleading shareholders about how well it managed risk,
including its exposure to "high-risk" clients such as Archegos
Capital Management.
A preliminary settlement of the proposed class action was filed on
Friday with the U.S. District Court in Manhattan, and requires a
judge's approval.
The bank was accused of playing "a kind of high-finance game of
Russian roulette" by letting hedge funds and other "prime"
customers make risky, multi-billion dollar bets with its credit,
despite publicly pledging a "core commitment" to managing its risk
limits, risk oversight and credit exposure.
Credit Suisse's "laissez-faire" approach led to at least $5.5
billion of losses, including from the collapses of Archegos and
British financier Greensill Capital, causing shareholders to lose
money as the price of its American depositary shares fell, court
papers alleged.
The bank denied wrongdoing in agreeing to settle. It said in a
statement that it was pleased to resolve the lawsuit.
Credit Suisse has dubbed 2022 a "transition" year as it reduces
risk-taking, and installed restructuring expert Ulrich Koerner as
chief executive. read more
Archegos' collapse caused about $10 billion of losses at banks and
wiped out more than $100 billion of shareholder value.
The lead plaintiff is the Sheet Metal Workers Pension Plan of
Northern California. Its lawyers plan to seek up to 27.5% of the
settlement amount, or about $8.9 million, for legal fees.
The case is City of St. Clair Shores Police & Fire Retirement
System v Credit Suisse Group AG, U.S. District Court, Southern
District of New York, No. 21-03385.
About Greensill Capital
Greensill is an independent financial services firm and principal
investor group based in the United Kingdom and Australia. It
offers structures trade finance, working capital optimization,
specialty financing and contract monetization. Greensill Capital
Pty is the parent company for the Greensill Group.
Greensill began to unravel in March 2021 when its main insurer
stopped providing credit insurance on US$4.1 billion of debt in
portfolios it had created for clients including Swiss bank Credit
Suisse.
Greensill Capital (UK) Limited and Greensill Capital Management
Company (UK) Limited filed for insolvency in Britain on March 8,
2021. Matthew James Byrnes, Philip Campbell-Wilson and Michael
McCann of Grant Thornton were appointed as administrators.
Greensill Capital Pty Ltd. filed insolvency proceedings in
Australia. Matt Byrnes, Phil Campbell-Wilson, and Michael McCann of
Grant Thornton Australia Ltd, were appointed as voluntary
administrators in Australia.
Greensill Capital Inc. filed for Chapter 11 bankruptcy (Bankr.
S.D.N.Y. Case No. 21-10561) on March 25, 2021. Jill M. Frizzley,
director, signed the petition. In the petition, the Debtor listed
assets of between $10 million and $50 million and liabilities of
between $50 million and $100 million. The case is handled by Judge
Michael E. Wiles.
In the Chapter 11 case, the Debtor tapped Segal & Segal LLP as
bankruptcy counsel, Mayer Brown LLP as special counsel, and GLC
Advisors & Co., LLC and GLCA Securities, LLC as investment bankers
and financial advisors. Matthew Tocks is the chief restructuring
officer of the Debtor. The official committee of unsecured
creditors is represented by Arent Fox LLP.
Greensill Capital (UK) Limited filed a Chapter 15 petition (Bankr.
S.D.N.Y. Case No. 21-11473) to seek U.S. recognition of its UK
proceedings on Aug. 18, 2021. ALLEN & OVERY LLP, led by Laura R.
Hall, is the Debtor's counsel in the Chapter 15 case.
*********
Monday's edition of the TCR delivers a list of indicative prices
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