/raid1/www/Hosts/bankrupt/TCR_Public/221027.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Thursday, October 27, 2022, Vol. 26, No. 299
Headlines
5280 AURARIA: Wins Cash Collateral Access on Final Basis
ADAPTIVE IDENTITY: Files Bare-Bones Chapter 11 Petition
AEARO TECHNOLOGIES: 3M Gets Quicker Appeal for Bankruptcy Loss
AIKIDO PHARMA: Wool Inks Amended Services Pact With Dominari
ALEXANDER CUSTOM: Taps Buddy D. Ford as Legal Counsel
ALL ABOUT KIDZ: Seeks Cash Collateral Access
ALLEVA DAIRY: Gets OK to Hire Howard E. Levy CPA as Accountant
ALPINE 4 HOLDINGS: Issues Letter to Shareholders
BARNES ENTERPRISES: Taps Stone & Baxter as Legal Counsel
BASS STREET: Taps Padgett Business Services as Accountant
BEAZER HOMES: Moody's Ups Sr. Unsec. Notes to B2, Outlook Positive
BELMONT TWIN: SARE Files for Chapter 11 Bankruptcy
CAROLINA CAJUNS: Seeks Cash Collateral Access
CELSIUS NETWORK: Court Denies Bid to Appoint Equity Committee
CELSIUS NETWORK: Faces Federal Probe in 40 U.S. States
CHERRY MAN: Seeks Continued Cash Collateral Access Thru Nov 19
CHILD'S TRUCKING: Taps Law Offices of Michael Jay Berger as Counsel
COX BROTHERS: Amends OSPrin III Claim Pay Details
CSI COMPRESSCO: Announces Quarterly Distribution, Q3 Release Date
CUTTING EDGE: Court OKs Interim Cash Collateral Access
DESIGUAL: 2nd Circuit Affirms Toss of Chapter 11 COVID Lease Row
DIEBOLD NIXDORF: S&P Downgrades ICR to 'CC', Off Watch Negative
DIEBOLD NIXDORF: To Refinance Debt to Address Near-Term Maturities
DRIVERGENT INC: Seeks to Hire Stevenson & Bullock as Counsel
ENJOY TECHNOLOGY: Unsecureds to Get 38% to 60% in Debtors' Plan
FIGUEROA MOUNTAIN: Court OKs 17th Cash Collateral Stipulation
GAUCHO GROUP: Increases Maximum Notes Offering Amount to $1.5-Mil.
GRAVITY HOLDINGS: Case Summary & One Unsecured Creditor
HAWAIIAN HOLDINGS: Inks Transportation Services Deal with Amazon
HELEN MARIE SIMONSEN: Seeks OK to Hire Goldman Appraisal Service
HELLAS COMMS: Judge Greenlights Investor Fraud Suit v. TPG/Apax
IFRESH INC: Authorized Common Stock Increased to 1 Billion Shares
INNERLINE ENGINEERING: Seeks Cash Collateral Access Thru Feb 2023
INTERNATIONAL MARKETPLACE: Taps Rogers and Russell as Counsel
JAFFAN INTERNATIONAL: Wins Interim Cash Collateral Access
JAGUAR HEALTH: Amends Note Purchase Agreements With Streeterville
JOG'S LLC: Court Confirms Subchapter V Plan
JUMBA LLC: Taps Cavazos Hendricks Poirot as Legal Counsel
K STREET: Case Summary & Six Unsecured Creditors
KABBAGE INC: Seeks Cash Collateral Access
LAPEER AVIATION: CG Unsecured Creditors Out of Money in Plan
LUMALE GROUP: SARE Files for Chapter 11 Bankruptcy
M&M CREATIVE: Case Summary & 20 Largest Unsecured Creditors
MADISON IAQ: Moody's Lowers CFR to 'B3', Outlook Stable
MASSACHUSETTS DEV'T: Moody's Affirms Ba1 on $131MM Revenue Bonds
MERCURITY FINTECH: To Hold Annual Meeting on Nov. 21
MINESEN COMPANY: Chapter 11 Trustee Taps Klevansky Piper as Counsel
MIRACLE CENTER: Has Deal on Cash Collateral Access Thru Dec 31
MISTER ROBERTS: Wins Cash Collateral Access Thru Nov 14
MMJC ENGINEERING: Files Subchapter V Case
MONTANA RENEWABLES: Moody's Withdraws 'B3' Corporate Family Rating
MULLEN AUTOMOTIVE: Signs Exchange Agreement With Esousa
NATIONWIDE FREIGHT: Wins Cash Collateral Access Thru Dec 5
NEWAGE INC: Taps Grant Thornton as Tax Service Provider
PAR PETROLEUM: Billings Transaction No Impact on Moody's B1 Rating
PHASEBIO PHARMACEUTICALS: Seeks Cash Access, $15MM DIP Loan
PHILUX GLOBAL: Terminates Business Cooperation Deal With Vinafilms
PHUNWARE INC: CEO Alan Knitowski Resigns
PLATINUM GROUP: Waterberg Establishes Pre-Construction Work Program
RE-BUILD SEVILLE: Seeks to Hire McRaney & McRaney as Counsel
RELMADA THERAPEUTICS: Deep Track, 2 Others Report 8.25% Stake
RUDRA INVESTMENTS: Unsecureds to Recover 50% in Sale Plan
SADDLE BROOK FARM: Taps Michael D. Pinsky P.C. as Counsel
SHILO INN BEND: Wins Cash Collateral Access Thru Feb 2023
SHILO INN IDAHO FALLS: Wins Cash Collateral Access Thru Feb 2023
SHILO INN OCEAN SHORES: Wins Cash Collateral Access Thru Feb 2023
SILVERSIDE SENIOR LIVING: Unsecureds Projected to Get 0% in Plan
SOUTHERN CALIFORNIA: Owner Files Own Plan to Pay SRI, Unsecureds
STARFISH POOL: Seeks to Hire Henshaw Law Office as Counsel
STATERA BIOPHARMA: Incurs $7.8 Million Net Loss in First Quarter
STEPHEN STANLEY: Avoids Suit When Worker Failed to Report in Case
THREE ARROWS: Under Probe by CFTC, SEC After Bankruptcy Filing
TITLE PIPE: Seeks to Hire Cheryl Guiddy as Accountant
TPT GLOBAL: Unit Closes Acquisition of IST LLC
VICTORIA TOWERS: Sanford Says Creditors' Plan Confirmable
VITAL PHARMACEUTICALS: Section 341(a) Meeting Set for November 18
VOYAGER DIGITAL: Proposing a Liquidating Plan, Says U.S. Trustee
VOYAGER DIGITAL: Voting on FTX Plan to End Nov. 29
WAND NEWCO 3: Moody's Affirms B3 CFR & Alters Outlook to Negative
[^] Recent Small-Dollar & Individual Chapter 11 Filings
*********
5280 AURARIA: Wins Cash Collateral Access on Final Basis
--------------------------------------------------------
The U.S. Bankruptcy Court for the District of Colorado authorized
5280 Auraria, LLC to use cash collateral on a final basis in
accordance with the budget, with a 15% variance.
The Debtor is directed to provide DB Auraria, LLC and Auraria Stub,
LLC, on or before the 10th day of the following month, an
accounting for the prior month of all revenue, cash expenditures
and collections, with a comparison to budget, in substantially the
same form as that provided by the receiver on September 6. The
Debtor will continue to file monthly operating reports with the
same type of information provided in prior reports.
The provisions will be deemed adequate protection to the lenders
asserting an interest in the cash collateral. To the extent
necessary under applicable law, each lender will be deemed to have
requested an administrative expense claim in respect thereof.
The Debtor's right to use cash collateral will terminate on the
upon of any of these events:
a. 120 days from the date of entry of the Order;
b. The failure by the Debtor to deliver to DB Auraria, LLC and
Auraria Stub, LLC, and to otherwise comply with, any of the
reporting or other information required to be delivered pursuant to
the Final Order when due or any such documents or other information
will contain a material misrepresentation; subject to a cure period
of three business days after the Debtor receives written notice
from DB Auraria, LLC or Auraria Stub, LLC of insufficient
reporting;
c. The closing date of any sale of substantially all of the
Debtor's assets;
d. The failure by the Debtor to observe or perform any of its
obligations or the other terms or provisions, including the use of
cash collateral in any manner not permitted by or otherwise
inconsistent with the Budget (subject to any permitted variance) or
agreed to by the Parties;
e. The Court will have entered an order dismissing the Chapter
11 Case;
f. The Court will have entered an order converting the Chapter
11 Case to a case under chapter 7 of the Bankruptcy Code; and
g. The Court will have entered an order authorizing the
appointment or election of a trustee or examiner with expanded
powers or any other representative with expanded powers relating to
the operation of the businesses in the Chapter 11 Case.
A copy of the order is available at https://bit.ly/3W7a0IX from
PacerMonitor.com.
About 5280 Auraria
5280 Auraria, LLC, owns Auraria Student Lofts, a high-rise building
in downtown Denver aimed at providing housing for college students.
5280 Auraria's sole member and manager is Nelson Partners, LLC, a
Utah limited liability company. The individual principal is
Patrick Nelson.
5280 Auraria sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Col. Case No. 22-12059) on June 9, 2022.
In the petition filed by Patrick Nelson, as managing member, the
Debtor listed between $50 million and $100 million in both assets
and liabilities.
Judge Kimberley H. Tyson oversees the case.
Michael J. Pankow, Esq., at Brownstein Hyatt Farber Schreck, LLP is
the Debtor's counsel.
ADAPTIVE IDENTITY: Files Bare-Bones Chapter 11 Petition
-------------------------------------------------------
Saying that its financial condition necessitated a bankruptcy
filing, Adaptive Identity Systems LLC filed for chapter 11
protection in the District of Central California.
According to court filings, Adaptive Identity Systems estimates $1
million to $10 million in debt to 1 to 49 creditors. The
bare-bones 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
Nov. 30, 2022, at 01:30 PM at UST-RS1, TELEPHONIC MEETING.
CONFERENCE LINE:1-866-822-7121, PARTICIPANT CODE:6203551.
About Adaptive Identity Systems
Adaptive Identity Systems LLC filed a petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Case No.
22-13940 ) on Oct. 19, 2022. In the petition filed by Hilario D.
Gonzales, as managing member, the Debtor reported assets and
liabilities between $10 million and $50 million each.
The Debtor is represented by Roseann Frazee of Frazee Law Group.
AEARO TECHNOLOGIES: 3M Gets Quicker Appeal for Bankruptcy Loss
--------------------------------------------------------------
Steven Church of Bloomberg New reports that 3M Co. won permission
to use a quicker-than normal process to try to reverse a bankruptcy
judge's decision to allow more than 230,000 lawsuits to go forward
that accuse the company of harming US soldiers.
Three judges from the US Court of Appeals in Chicago sided with
3M's bankrupt subsidiary, Aearo Technologies, which argued that the
decision affects so many people and has the potential to set such
an important precedent that it "cries out" for an immediate review.
The ruling means Aearo and 3M may have the appeal considered in
months instead of the regular process that can take years.
In August 2022, US Bankruptcy Judge Jeffrey J. Graham refused to
halt lawsuits accusing 3M and Aearo of selling faulty combat
earplugs that damaged the hearing of veterans. 3M had tried to
halt the lawsuits in July 2022 and open a new round of negotiations
with soldiers by placing Aearo into a Chapter 11 bankruptcy.
Graham's decision upended 3M's strategy, which relied on
controversial rules that sometimes allow parent companies to
benefit by halting jury trials and settling their lawsuits in one
place. A temporary halt would help 3M pressure soldiers into
settling, Graham said in his ruling. But federal bankruptcy law in
Indiana didn’t allow him to grant 3M's request for an injunction,
Graham added.
The appeal by Aearo seeks to revive a strategy in which profitable
companies use insolvency proceedings to force settlement talks with
victims of allegedly harmful products. Johnson & Johnson and lumber
giant Georgia-Pacific have put units into bankruptcy with the same
goal of ending their litigation woes in one place instead of
fighting thousands of trials around the country.
Lawsuits Halted
The legal maneuver is also under attack in the US Court of Appeals
in Philadelphia, where a bankrupt unit of J&J is defending its
right to use Chapter 11 rules to resolve about 40,000 cases in
which the company's iconic baby powder is alleged to cause cancer.
In that case, a bankruptcy judge in New Jersey halted the lawsuits
against J&J while the company’s unit, LTL Management, tried to
resolve the claims.
In a hearing in September 2022, the three judge-panel in the J&J
appeal questioned whether the strategy should be allowed. The
judges didn't say when they might rule.
Until July 2022, 3M had been fighting the hearing-loss claims in
federal court in Pensacola, Florida, where a judge was overseeing
the initial, procedural steps needed to prepare the lawsuits for
separate jury trials that would take place in other courts. The
judge overseeing that process, which is known as multi-district
litigation, or MDL, had questioned 3M's decision to use bankruptcy
instead.
The bankruptcy is Aearo Technologies LLC, 22-02890, US Bankruptcy
Court for the Southern District of Indiana (Indianapolis).
About Aearo Technologies
Aearo Technologies -- https://earglobal.com/en -- is a 3M company
that designs, manufactures, and sells personal protection
equipment. The Company offers prescription and non-prescription
safety eye wear, face shields, hard hats, and respirators. Aearo
serves customers worldwide.
To address claims related to the Combat Arms Earplugs Version 2,
Aearo Technologies LLC and its affiliates sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Ind. Lead Case
No. 22-02890) on July 26, 2022. In the petition filed by John R.
Castellano, as authorized signatory, Aearo Technologies estimated
assets and liabilities between $1 billion and $10 billion each.
3M is not a debtor in the Chapter 11 cases. 3M has committed $1
billion to fund a trust allocated for Combat Arms claims.
Kirkland & Ellis LLP is serving as legal counsel and AlixPartners
LLP is serving as restructuring advisor to Aearo Technologies. Ice
Miller LLP is serving as bankruptcy co-counsel to the Debtors.
Kroll is the claims agent.
PJT Partners is serving as financial advisor and White & Case LLP
is serving as legal counsel to 3M.
AIKIDO PHARMA: Wool Inks Amended Services Pact With Dominari
------------------------------------------------------------
Kyle Wool entered into an Amended and Restated Services Agreement
with Dominari Financial Inc., a wholly owned subsidiary of AIkido
Pharma Inc., for an initial term of five years, renewable
thereafter for additional one-year periods on an annual basis.
Under the terms of the Wool Services Agreement, Mr. Wool will serve
as a consultant to Dominari until his employment and registration
as a registered representative with the Financial Industry
Regulatory Authority have been terminated with his current
employer. Upon such terminations, Mr. Wool will assume the role of
chief executive officer of Dominari, with the other duties,
responsibilities and authority as may be assigned to him by the
chief executive officer of AIkido or the Board of Directors of
Dominari. The Wool Services Agreement provides for the payment of
an annual base salary of $500,000 to Mr. Wool, to be paid in equal
semi-monthly or bi-weekly installments and an annual bonus payable
in cash and in shares of Common Stock as a performance-based award
of shares of Aikido's common stock, par value $0.0001 per share
under the Company's 2022 Equity Incentive Plan, in three
installments, based on the Company's meeting or exceeding the
following annual revenue amounts for the first time for the
relevant calendar years; provided, however, that the Board may
adopt different or additional performance criteria for future years
after consultation with Mr. Wool, provided that such criteria must
be reasonably attainable:
Annual Revenue Annual Bonus
-------------- ------------
$3,500,000 or more $150,000 plus 154,559 Common Shares
Between $7.5M and $15M $250,000 plus 154,559 Common Shares
$15M or more $500,000 plus 154,559 Common Shares
The amount of shares of Common Stock which may be issued to Mr.
Wool as the Stock Bonus portion of the Annual Bonus was determined
to provide Mr. Wool with a performance-based award of shares of
Common Stock valued at $3,000,000, as of Oct. 14, 2022, based on
the closing price of $6.47 per share of the Common Stock on the
Nasdaq Capital Market on such date, provided that Mr. Wool shall
only be entitled to any payment of the Annual Bonus, including the
issuance of any shares of Common Stock, as the Stock Bonus portion
of the Annual Bonus, if the applicable annual revenue targets are
attained.
The issuance of any shares of Common Stock under the 2022 Equity
Incentive Plan, as the Stock Bonus portion of the Annual Bonus is
expressly conditioned on stockholder approval of the 2022 Equity
Incentive Plan on or before Oct. 7, 2023. If such stockholder
approval is not obtained on or before Oct. 7, 2023, the Stock Bonus
portion of the Annual Bonus will be forfeited and Dominari shall
make a one-time cash payment to Mr. Wool equal to the product
obtained by multiplying (i) the total amount of 463,678 shares of
Common Stock which would have been awarded to Mr. Wool, if all of
the shares of Common Stock subject to the Stock Bonus had been
issued to him, and (ii) the closing price of the Common Stock on
the Nasdaq Capital Market on the trading day immediately preceding
Oct. 7, 2023.
The Wool Services Agreement also provides for the support of an
administrative assistant to Mr. Wool, reimbursement of certain
specified expenses, and entitlement to participate in any of
Dominari's benefit plans offered to senior executives.
Upon a termination of the Wool Services Agreement (i) by Dominari
without "Cause" or (ii) by Mr. Wool for "Good Reason" or by notice
within 40 days of a "Change in Control Transaction" (as such terms
are defined in the Wool Services Agreement, Mr. Wool will be
entitled to receive (i) a lump sum payment equal to 12 months Base
Salary at the then current rate, (ii) payments by Dominari of a
portion of the cost of continuation of group health coverage under
COBRA, and (iii) a pro-rated portion of any Special Performance
Bonus Award or other bonus payments to which Mr. Wool would
otherwise been entitled as of the date of his termination.
About AIkido Pharma
Headquartered in New York, NY, AIkido Pharma Inc. fka Spherix
Incorporated -- http://www.spherix.com-- was initially formed in
1967 and is a biotechnology Company with a diverse portfolio of
small-molecule anticancer and antiviral therapeutics. The
Company's platform consists of patented technology from leading
universities and researchers, and the Company is currently in the
process of developing an innovative therapeutic drug platform
through strong partnerships with world renowned educational
institutions, including The University of Texas at Austin and
University of Maryland at Baltimore. The Company's diverse
pipeline of therapeutics includes therapies for pancreatic cancer,
prostate cancer. The Company is constantly seeking to grow its
pipeline to treat unmet medical needs in oncology. The Company is
also developing a broad-spectrum antiviral platform that may
potentially inhibit replication of multiple viruses including
Influenza virus, SARS-CoV (coronavirus), MERS-CoV, Ebolavirus and
Marburg virus.
Aikido reported a net loss of $7.17 million for the year ended Dec.
31, 2021, compared to a net loss of $12.34 million for the year
ended Dec. 31, 2020, and a net loss of $4.18 million for the year
ended Dec. 31, 2019. As of June 30, 2022, the Company had $88.30
million in total assets, $829,000 in total liabilities, and $87.47
million in total stockholders' equity.
ALEXANDER CUSTOM: Taps Buddy D. Ford as Legal Counsel
-----------------------------------------------------
Alexander Custom Homes II, Inc. seeks approval from the U.S.
Bankruptcy Court for the Middle District of Florida to employ Buddy
D. Ford, P.A. as its legal counsel.
The firm's services include:
(a) analyzing the financial situation of the Debtor;
(b) advising the Debtor regarding its powers and duties in the
continued operation of its business and management of its
property;
(c) preparing and filing the Debtor's schedules of assets and
liabilities, statement of affairs, and other documents required by
the court;
(d) representing the Debtor at the creditors' meeting required
by Section 341 of the Bankruptcy Code;
(e) giving the Debtor legal advice with respect to its powers
and duties in the continued operation of its business and
management of its property;
(f) advising 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) preparing legal papers;
(g) protecting the interest of the Debtor in all matters pending
before the court;
(h) representing the Debtor in negotiation with its creditors in
the preparation of a Chapter 11 plan; and
(i) performing all other necessary legal services for the
Debtor.
The firm will be paid at these rates:
Buddy D. Ford, Esq. $450 per hour
Senior Associate Attorneys $400 per hour
Junior Associate Attorneys $350 per hour
Senior Paralegal Services $150 per hour
Junior Paralegal Services $100 per hour
In addition, the firm will seek reimbursement for expenses
incurred.
The Debtor paid the firm an advance fee of $22,000.
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, P.A.
9301 West Hillsborough Avenue
Tampa, FL 33615-3008
Telephone: (813) 877-4669
Email: Buddy@tampaesq.com
Jonathan@tampaesq.com
Heather@tampaesq.com
About Alexander Custom Homes II
Alexander Custom Homes II, Inc. filed a Chapter 11 bankruptcy
petition (Bankr. M.D. Fla. Case No. 22-04112) on Oct. 12, 2022,
with up to $500,000 in assets and up to $1 million in liabilities.
Judge Roberta A. Colton oversees the case.
The Debtor tapped Buddy D. Ford, P.A. as its legal counsel.
ALL ABOUT KIDZ: Seeks Cash Collateral Access
--------------------------------------------
All About Kidz Learning Dev Center Inc. asks the U.S. Bankruptcy
Court for the Middle District of Alabama, Northern Division, for
authority to use cash collateral.
The Debtor requires the use of cash collateral for administrative,
general and necessary costs and expenses including, but not limited
to, waste services, utilities, taxes, rent, supplies, payroll,
insurance, and miscellaneous expenses relative to a childcare
services facility.
Throughout the last two years, the Debtor has suffered financial
problems related, at least in part, to the COVID-19 pandemic. The
Debtor's income declined during the period.
The imminent threat to the Debtor's business operations, which
prompted the immediate Chapter 11 filing, was a process of
garnishment that was served by Coolidge Capital, LLC to Valley
National Bank a day or so in advance of the Petition Date.
Alabama Department of Industrial Relations (UCC-1 filed
05/09/2016), Alabama Department of Revenue (UCC-1 filed
04/26/2022), Bitty Advance NY, LLC, Cloud Fund, LLC (UCC-1 possibly
filed 07/23/2021), Coolidge Capital, LLC (UCC-1 filed 08/18/2022),
Everest Financial Group, LLC (UCC-1 possibly filed 09/01/2021),
Liquidibee, LLC (UCC-1 possibly filed 04/22/2022), and Speedy
Funding, LLC acquired or may have acquired security interests in,
among possibly other property, the Debtor's cash and cash
equivalents.
As of the Petition Date, the Debtor's accounts, because of the
garnishment served by Coolidge Capital, LLC, reflected the
following on deposit:
a. Valley National Bank, Account Number Ending 7787
Balance -$51,329, caused by Coolidge's garnishment
b. Valley National Bank, Account Number Ending 7884
Balance -$55,389, caused by Coolidge's garnishment
c. River Bank & Trust, Account Number Ending 0816
Balance $52.
The Debtor anticipates that, because of the automatic stay of 11
U.S.C. Section 362(a), Coolidge will release the garnishment and
that the bank will reinstate the account balances to:
VNB 7787 $4,620; and
VNB 7884 $2,631.
The Debtor proposes that adequate protection to the identified
entities includes a replacement lien on the Debtor's post-petition
receivables and projected positive cash flow.
A copy of the motion is available at https://bit.ly/3NbcySj from
PacerMonitor.com.
About All About Kidz Learning Dev Center Inc.
All About Kidz Learning Dev Center Inc. operates two childcare
service centers in Montgomery, Alabama.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Ala. Case No. 22-32001) on October 19,
2022. In the petition signed by Sade Lewis, president/owner, the
Debtor disclosed up to $50,000 in assets and up to $100,000 in
liabilities.
Anthony B. Bush, Esq., at Bush Law Firm, LLC, is the Debtor's legal
counsel.
ALLEVA DAIRY: Gets OK to Hire Howard E. Levy CPA as Accountant
--------------------------------------------------------------
Alleva Dairy Inc. received approval from the U.S. Bankruptcy Court
for the Southern District of New York to employ Howard E. Levy,
CPA, P.C. as its accountant.
The firm will be paid $250 per hour for its services.
Howard Levy, a partner at Howard E. Levy, CPA, disclosed in a court
filing that his firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Howard E. Levy
Howard E. Levy, CPA, P.C.
505 Post Avenue
Westbury, NY 11590
Tel: (516) 338-0200
About Alleva Dairy Inc.
Alleva Dairy Inc. is a New York-based privately held company, which
operates in the cheese shop business.
Alleva Dairy sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 22-11284) on Sept. 27,
2022, with up to $50,000 in assets and $1 million to $10 million in
liabilities. Karen Fouquet, president of Alleva Dairy, signed the
petition.
Judge David S. Jones oversees the case.
Fred Steven Kantrow, Esq., at The Kantrow Law Group, PLLC and
Howard E. Levy, CPA, P.C. serve as the Debtor's legal counsel and
accountant, respectively.
ALPINE 4 HOLDINGS: Issues Letter to Shareholders
------------------------------------------------
Alpine 4 Holdings, Inc. issued a letter to shareholders on Oct. 20,
2022.
Dear Shareholders,
I wanted to take the time to write to you and update you on several
things going on corporately at Alpine 4 Holdings and our
subsidiaries:
Hurricane Update – Subsidiary Companies in Fort Myers, Florida
As you know from my last letter, our two subsidiaries that are
located in Fort Myers, Florida (Alternative Laboratories and
Thermodynamics International), were largely unscathed from the
hurricane that struck the area in late September. Our facilities
remained intact, and power, water, and other utilities necessary to
perform work have now been restored. I am thrilled to say that all
of our employees are now accounted for, and most of them are back
at work. That being said, this traumatic event has taken a toll on
the emotional and physical well-being of most citizens of the area,
and our employees have suffered from this as well. While events
like this do have a sobering effect on us, the outpouring of
support for the Fort Myers community from our shareholders is
nothing short of amazing. For those of you who took the time to
write to them and support them with your resources and finances, we
as a Company are grateful for your dedication to helping those who
are most in need. I know I speak for all of our 514 employees
nationwide when I say thank you!
Litigation Status -- Resolutions since the last update provided in
the latest 10-Q filing
In the matter of the Company's subsidiary Excel Fabrication, LLC
("Excel"), Case Number CV42-20-2246, Plaintiff Excel claimed
tortious interference and trade secret violations by the Defendant
Fusion Mechanical, LLC. In September 2022, Excel agreed to enter
into a Confidential Settlement and Release Agreement with Fusion
Mechanical, LLC, in exchange for terms that Excel judged beneficial
to its future interests. On September 29th, 2022, at the request
of the parties, the case was dismissed.
In the matter of the Company's subsidiary Horizon Well Testing, LLC
("Horizon"), Case Numbers CJ-2021-4316, CJ-2021-4315, and
CJ-2021-4314, Defendant Horizon was sued by three former employees
of Horizon, claiming unjust enrichment and breach of contract,
claims which Horizon believed to be frivolous. One plaintiff has
accepted a settlement based on a buyout of his 37,500 shares in
Company stock for $24,375, and at the time of this update, the
other two plaintiffs are exploring setting their cases with similar
buyout agreements.
Also, in a matter involving the Company's subsidiary Horizon Well
Testing, LLC ("Horizon"), Case No.2:20-cv-01679-DJH, Plaintiff
Horizon claimed breach of contract against the original owner of
the Company Alan Martin, and tortious interference claims against
former Horizon employees DG Belcher and Jason Huffaker. While the
case against Mr. Huffaker was previously dismissed for lack of
jurisdiction, in September 2022, the court granted the Company a
default judgment against Mr. Belcher in the amount of $4,010,000.
In that same opinion of the court, the judge struck Horizon's
claims against Mr. Martin while preserving Mr. Martin's
counterclaims, about which the parties are in discussion as to the
next steps.
In the matter involving the Company as plaintiff against Fin
Capital LLC ("Fin") and Grizzly Research LLC ("Grizzly"), Case
number 2:21-cv-00886-MTL, alleging securities fraud, tortious
interference, and libel slander against Fin and Grizzly for
disseminating false and misleading statements in order to
manipulate the Company's stock, in August 2022 the court granted
Grizzly's and Fin's motion to dismiss Company's case against them.
The Company is in consultation with counsel about other claims that
Company might pursue against Fin and Grizzly.
New State of the Art Production Facility for Quality Circuit
Assembly, Inc (QCA)
In June 2022, the Company's subsidiary, QCA, entered into a new
lease agreement for a new facility located in San Jose, CA. QCA
has done an impressive job with landing customers like Rivian and
other well-funded high tech companies in Silicon Valley. This new
facility will add a breath of new capabilities for QCA and will be
considered a gold standard for electronics manufacturing in
Northern California. The building is currently being modified, and
QCA expects to move into this building by June 30th, 2023.
United States Location Selected for a Pilot Solid-State Battery
Manufacturing Line
For the past eight months, the Company has been actively pursuing a
location to build our US-based solid-state battery facility. This
past June, Alpine 4 and its subsidiaries, Quality Circuit Assembly,
Inc (QCA) and Elecjet, took a big step forward in our goals to
bring manufacturing of its AX class of Solid-State Batteries to the
United States by choosing San Jose, CA, as its location to build
its initial pilot manufacturing line. This will be done in
conjunction with QCA and their ITAR and AS91000-D certifications.
This location will provide military and aerospace certifications
for our AX Class of Solid-State Batteries and open up the Company
to two very lucrative markets. With regards to choosing a location
for a larger production facility, the Company will wait until
mid-2023 to make that decision, as we are waiting on input from
interested municipalities and local governments.
In closing, it isn't lost on us that the current economic
conditions have been turbulent, and the effects on the market have
been strenuous. However, Alpine 4 and our subsidiaries are making
great strides forward in executing our business plan, and we look
forward to sharing our future successes with you as we close out
2022 and move into 2023.
Best regards,
Kent B. Wilson
CEO / President / Founder
About Alpine 4
Alpine 4 Holdings, Inc (formerly Alpine 4 Technologies, Ltd) is a
publicly traded conglomerate that is acquiring businesses that fit
into its disruptive DSF business model of drivers, stabilizers, and
facilitators. As of April 14, 2021, the Company was a holding
company that owned nine operating subsidiaries: ALTIA, LLC; Quality
Circuit Assembly, Inc.; Morris Sheet Metal, Corp; JTD Spiral, Inc.;
Deluxe Sheet Metal, Inc.; Excel Construction Services, LLC;
SPECTRUMebos, Inc.; Impossible Aerospace, Inc.; and Vayu (US), Inc.
Alpine 4 reported a net loss of $19.41 million for the year ended
Dec. 31, 2021, compared to a net loss of $8.05 million for the year
ended Dec. 31, 2020. As of March 31, 2022, the Company had $130.38
million in total assets, $62.35 million in total liabilities, and
$68.04 million in total stockholders' equity.
BARNES ENTERPRISES: Taps Stone & Baxter as Legal Counsel
--------------------------------------------------------
Barnes Enterprises, LLP seeks approval from the U.S. Bankruptcy
Court for the Middle District of Georgia to employ Stone & Baxter,
LLP as its legal counsel.
The firm's services include:
a. advising the Debtor regarding its powers and duties in the
continued operation of its business and management of its
property;
b. preparing legal papers;
c. continuing existing litigation, if any, to which the Debtor
may be a party and conducting examinations incidental to the
administration of its estate;
d. taking other actions necessary to ensure the proper
preservation and administration of the Debtor's estate;
e. assisting the Debtor in the preparation and filing of its
statements of financial affairs, schedules and lists;
f. taking necessary actions related to the use by the Debtor of
its property pledged as collateral, including cash collateral;
g. asserting, as directed by the Debtor, all claims it has
against others;
h. assisting the Debtor in connection with claims for taxes made
by governmental units;
i. assisting in the preparation of a plan of reorganization and
confirmation thereto; and
j. performing all other necessary legal services for the
Debtor.
Stone & Baxter will be paid at these rates:
Attorneys $200 to $475 per hour
Paralegals $135 per
In addition, the firm will be reimbursed for out-of-pocket expenses
incurred.
The firm received an initial deposit from the Debtor in the amount
of $21,738.
Matthew Cathey, Esq., a partner at Stone & Baxter, disclosed in a
court filing that his firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Matthew S. Cathey, Esq.
Stone & Baxter, LLP
577 Mulberry Street, Suite 800
Macon, GA 31201
Tel: (478) 750-9898
Fax: (478) 750-9899
Email: mcathey@stoneandbaxter.com
About Barnes Enterprises
Barnes Enterprises LLP, a financial services company in Macon, Ga.,
filed a petition for relief under Subchapter V of Chapter 11 of the
Bankruptcy Code (Bankr. M.D. Ga. Case No. 22-51155) on Oct. 3,
2022, with up to $50 million in assets and up to $10 million in
liabilities. Jenny Martin Walker has been appointed as Subchapter V
trustee.
The Debtor tapped Matthew S. Cathey, Esq., at Stone & Baxter, LLP
as legal counsel and Clayton & Company, PC as accountant.
BASS STREET: Taps Padgett Business Services as Accountant
---------------------------------------------------------
Bass Street Moline, LLC seeks approval from the U.S. Bankruptcy
Court for the Central District of Illinois to employ Padgett
Business Services as accountant.
The Debtor requires an accountant to prepare and file its annual
income tax returns, quarterly 941, sales tax returns, federal and
state unemployment returns, weekly payroll, W-2, 1099, and other
accounting work.
The firm will be paid $300 per monthly operating report and $400
per month for other accounting services.
Brandon Voss, a partner at Padgett Business Services, 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:
Brandon Voss
Padgett Business Services
1409 6th Avenue
Moline, IL 61265
Tel: (309) 277-1265
About Bass Street Moline
Bass Street Moline, LLC is a limited liability company engaged in
the restaurant business.
Bass Street Moline sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Ill. Case No. 22-80459) on July 29,
2022, with up to $500,000 in both assets and liabilities. David
Yordy, member and manager, signed the petition.
Dale G. Haake, Esq., at Katz Nowinski P.C. and Padgett Business
Services serve as the Debtor's legal counsel and accountant,
respectively.
BEAZER HOMES: Moody's Ups Sr. Unsec. Notes to B2, Outlook Positive
------------------------------------------------------------------
Moody's Investors Service upgraded the ratings for Beazer Homes
USA, Inc.'s senior unsecured notes to B2 from B3. Moody's also
affirmed Beazer's B2 Corporate Family Rating and B2-PD Probability
of Default Rating, and changed the outlook to positive from stable.
The company's SGL-2 Speculative Grade Liquidity Rating was
maintained.
The upgrade of Beazer's senior unsecured note ratings to B2 from B3
reflects the change in the company's capital structure given the
replacement of its $250 million senior secured revolving credit
facility maturing in 2023 with a new $265 million unsecured
revolving credit facility expiring in 2026. The B2 rating on the
company's unsecured notes, at the same level with its Corporate
Family Rating, reflects the unsecured nature of the vast majority
of its capital structure, with the exception of junior subordinated
notes due 2036 that provide loss absorption in a distressed
scenario.
The positive outlook reflects Moody's expectation that over the
next few quarters Beazer will achieve a deleveraging on a
sustainable basis below 50% total debt to capitalization through
increasing its net worth, while maintaining interest coverage above
3.0x and good liquidity with positive free cash flow. Beazer's
repayment of its $50 million unsecured term loan in September 2022
will contribute to this deleveraging. "The company's leverage,
interest coverage and free cash flow to debt metrics are expected
to sustain at solid levels despite the weakening in demand
conditions for homebuilding due to its disciplined approach to
balance sheet management" says Natalia Gluschuk, Moody's Vice
President – Senior Credit Officer.
The following rating actions were taken:
Affirmations:
Issuer: Beazer Homes USA, Inc.
Corporate Family Rating, Affirmed B2
Probability of Default Rating, Affirmed B2-PD
Upgrades:
Issuer: Beazer Homes USA, Inc.
Senior Unsecured Regular Bond/Debenture, Upgraded to
B2 (LGD4) from B3 (LGD4)
Outlook Actions:
Issuer: Beazer Homes USA, Inc.
Outlook, Changed To Positive From Stable
RATINGS RATIONALE
Beazer's B2 Corporate Family Rating is supported by the company's:
(1) considerable size and scale, with revenue of $2 billion and
geographic diversity; (2) focus on the first time homebuyer segment
for about half of home closings, which is expected to benefit from
favorable demographic trends, although pressured by constrained
affordability; (3) focus on strengthening the balance sheet and
track record of debt reduction and deleveraging; and (4)
conservative approach to land investments and good liquidity,
including expected positive cash flow from operations.
At the same time, the rating reflects: (1) the company's high
homebuilding debt to book capitalization ratio of about 55% at June
30, 2022; (2) its share repurchase program, although significant
repurchases are not anticipated; (3) risk related to owned land
supply of nearly three years and the exposure to potential
impairments in an event of meaningful price declines; and (4)
exposure to the cyclicality of the homebuilding industry and
volatility in demand.
The SGL-2 Speculative Grade Liquidity Rating reflects Moody's
expectation that Beazer will maintain good liquidity over the next
12 to 15 months. Liquidity is supported by Moody's expectation of
positive free cash flow, ample availability under the company's
$265 million senior unsecured revolving credit facility, good
covenant compliance cushions, as well as alternate sources of
liquidity given its land supply and unsecured capital structure.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if the company's homebuilding debt to
book capitalization approaches 50%, tangible net worth exceeds $1
billion, EBIT to interest coverage is maintained above 3.0x, while
industry conditions remain favorable, gross margin continues to
improve and good liquidity is maintained.
The ratings could be downgraded if the company's homebuilding debt
to book capitalization is sustained above 60%, EBIT to interest
coverage declines below 2.0x, if industry conditions weaken causing
meaningful declines in revenue and gross margin and result in net
losses, or if liquidity were to weaken.
The principal methodology used in these ratings was Homebuilding
And Property Development Industry published in January 2018.
Beazer Homes, USA, Inc., headquartered in Atlanta, Georgia, is a US
homebuilder operating in 13 states across three geographic regions:
West, East and Southeast, and constructing homes for entry-level,
move-up, and active adult homebuyers. In the last twelve months
ended June 30, 2022, Beazer generated $2.1 billion in revenue and
$182 million in net income.
BELMONT TWIN: SARE Files for Chapter 11 Bankruptcy
--------------------------------------------------
Belmont Twin LLC filed for chapter 11 protection in the Eastern
District of New York.
The Debtor says it's a Single Asset Real Estate, and its principal
asset is located at 714 Belmont Avenue Brooklyn, NY 11208.
According to court filings, Belmont Twin LLC estimates $1 million
to $10 million in debt to 1 to 49 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
Nov. 28, 2022, at 02:15 PM at Teleconference - Brooklyn.
About Belmont Twin LLC
Belmont Twin LLC is a Single Asset Real Estate (as defined in 11
U.S.C. Sec. 101(51B)).
Belmont Twin LLCe filed a petition for relief under Chapter 11 of
the Bankruptcy Code (Bankr. E.D.N.Y. Case No. 22-42605) on Oct. 20,
2022. In the petition filed by Serach Neustadt, as managing
member, the Debtor reported assets and liabilities between $1
million and $10 million each.
The Debtor is represented by Avrum J Rosen of Law Offices of Avrum
J. Rosen, PLLC.
CAROLINA CAJUNS: Seeks Cash Collateral Access
---------------------------------------------
The Carolina Cajuns, LLC asks the U.S. Bankruptcy Court for the
District of Connecticut, Hartford Division, for authority to use
cash collateral, both on a preliminary and final basis.
The Debtor requires the use of cash collateral to meet payroll and
other obligations, and to maintain and preserve its business in
order to preserve its value for the benefit of the Chapter 11
estate and its creditors.
The Debtor, a North Carolina limited liability company, became a
franchisee of The Lost Cajun Enterprises, LLC in May 2018 and
opened two, full-service, family-focused restaurants in August and
October 2019:
-- 9709 Sam Furr Road, Huntersville, North Carolina 28078;
and
-- 108 Huffman Mill Road, Burlington, North Carolina 27215.
Prior to the Filing Date, the Debtor borrowed funds from Aquesta
Bank, 464 Williamson Road, Mooresville, NC 28117, to operate the
restaurants. Aquesta subsequently sold its assets to United
Community Bank. The Debtor's loans with United Community Bank are
guaranteed by the U.S. Small Business Administration.
According to a UCC search performed in North Carolina, Aquesta --
now United Community Bank -- and the SBA claim a security interest
in the Debtor's assets, including its cash and receivables. As a
result of the Secured Creditors' claims, the Debtor has
insufficient unencumbered cash with which to operate its business,
compensate its employees, and meet its creditor obligations.
As adequate protection, the Debtor proposes to grant to the Secured
Creditors a replacement lien upon and a security interest in the
Debtor's assets, excluding all bankruptcy causes of action,
pursuant to Bankruptcy Code section 361(2) but only to the extent
that the Court determines the Secured Creditors possess valid, duly
perfected, non-avoidable and enforceable pre-petition liens. In
addition, to the extent the adequate protection therein to the
Secured Creditors proves to be inadequate and the inadequacy gives
rise to a claim allowable under Bankruptcy Code section 507, that
claim will constitute an allowed administrative claim against the
Debtor with priority over all administrative claims in the
bankruptcy case, including all claims of the kind specified in
Bankruptcy Code sections 503(b) and 507(b).
A copy of the motion is available at https://bit.ly/3stFgVd from
PacerMonitor.com.
About The Carolina Cajuns, LLC
The Carolina Cajuns, LLC is part of the restaurant industry. The
Debtor sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Conn. Case No. 22-20640) on September 16, 2022. In
the petition signed by Steven A. Galloway, president, the Debtor
disclosed up to $50,000 in assets and up to $10 million of
liabilities.
Judge James J. Tancredi oversees the case.
John P. Newton, Esq., at Reid and Riege, P.C., is the Debtor's
counsel.
CELSIUS NETWORK: Court Denies Bid to Appoint Equity Committee
-------------------------------------------------------------
A U.S. bankruptcy judge denied the motion filed by a group of
equity investors to appoint an official committee that will
represent them and other equity investors in the Chapter 11 cases
of Celsius Network Limited and its affiliates.
In his order, Judge Martin Glenn of the U.S. Bankruptcy Court for
the Southern District of New York said he agrees with the companies
and the unsecured creditors' committee that appointment of a
preferred equity committee is inappropriate.
"The equity holders are adequately represented by already existing
stakeholders and do not need additional representation," Judge
Glenn said. "The requesting equity holders provide no legal support
for the proposition that a disagreement on certain legal issues
related to distribution renders the appointment of an equity
committee necessary."
The equity investors also failed to prove that there is a
substantial likelihood of equity recovery, according to the
bankruptcy judge.
"No party has stated that the debtors are hopelessly insolvent. The
requesting equity holders put forth no more than a contingent legal
theory in support of their contention that equity will recover,"
Judge Glenn said.
The bankruptcy judge also cited other factors such as the balance
of costs and benefits to the estate, which do not support the
appointment of an equity committee.
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 Debtors estimated assets and liabilities between $1
billion and $10 billion.
The Debtors tapped Kirkland & Ellis, LLP and Kirkland & Ellis
International, LLP as legal counsels; Centerview Partners, LLC as
investment banker; and Alvarez & Marsal North America, LLC as
financial advisor. Stretto, the claims agent and administrative
advisor, maintains the page https://cases.stretto.com/celsius
On July 27, 2022, the U.S. Trustee appointed an official committee
of unsecured creditors. The committee tapped White & Case, LLP as
its bankruptcy counsel; Elementus Inc. as its blockchain forensics
advisor; M3 Advisory Partners, LP as its financial advisor; and
Perella Weinberg Partners, LP as its investment banker.
Shoba Pillay, Esq., is the examiner appointed in the Debtors'
Chapter 11 cases. Jenner & Block, LLP and Huron Consulting
Services, LLC serve as the examiner's legal counsel and financial
advisor, respectively.
CELSIUS NETWORK: Faces Federal Probe in 40 U.S. States
------------------------------------------------------
Mehab Qureshi of Benzinga Crypto reports that Celsius Network faces
federal investigations in 40 states for suspending crypto
withdrawals.
Cryptocurrency lender Celsius Network, which declared bankruptcy
earlier this 2022, told a U.S. bankruptcy court that it is facing
several "federal investigations." Celsius has been subject to
enforcement proceedings or investigations in at least 40 states, it
told the Southern District of New York, Bloomberg reported.
The U.S. Securities and Exchange Commission, Commodity Futures
Trading Commission, and Federal Trade Commission have sent queries
to the firm.
Celsius gained popularity by paying people interest on their
cryptocurrency deposits but froze withdrawals in June after risky
bets backfired and cryptocurrency prices crashed.
The platform facilitated users to earn Bitcoin, avail of
crypto-backed loans, and stake their coins.
Creditors have sent letters to the judge in charge of the case,
accusing Celsius and its former CEO Alex Mashinsky of misleading
them about the risks involved in investing their cryptocurrencies
in the company.
About Celsius Network
Celsius Network LLC -- http://www.celsius.network/-- is a
financial services company that generates revenue through
cryptocurrency trading, lending, and borrowing, as well as by
engaging in proprietary trading.
Celsius helps over a million customers worldwide to find the path
towards financial independence through a compounding yield service
and instant low-cost loans accessible via a web and mobile app.
Celsius has a blockchain-based fee-free platform where membership
provides access to curated financial services that are not
available through traditional financial institutions.
The Celsius Wallet claims to be one of the only online crypto
wallets designed to allow members to use coins as collateral to get
a loan in dollars, and in the future, to lend their crypto to earn
interest on deposited coins (when they're lent out).
Crypto lenders such as Celsius boomed during the COVID-19 pandemic,
drawing depositors with high interest rates and easy access to
loans rarely offered by traditional banks. But the lenders'
business model came under scrutiny after a sharp sell-off in the
crypto market spurred by the collapse of major tokens terraUSD and
luna in May 2022.
New Jersey-based Celsius froze withdrawals in June 2022, citing
"extreme" market conditions, cutting off access to savings for
individual investors and sending tremors through the crypto
market.
The list of major crypto firms that have filed for bankruptcy
protection in 2022 now includes Celsius Network, Three Arrows
Capital and Voyager Digital.
Celsius Network LLC and its subsidiaries sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No.
22-10964) on July 14, 2022. In the petition filed by CEO Alex
Mashinsky, the Debtor estimated assets and liabilities between $1
billion and $10 billion.
Kirkland & Ellis LLP is serving as legal counsel, Centerview
Partners is serving as financial advisor, and Alvarez & Marsal is
serving as restructuring advisor to Celsius.
Stretto, the claims agent, maintains the page
https://cases.stretto.com/celsius
CHERRY MAN: Seeks Continued Cash Collateral Access Thru Nov 19
--------------------------------------------------------------
Hamid R. Rafatjoo, the Chapter 11 Trustee for the bankruptcy estate
of Cherry Man Industries, Inc., has filed a Supplement to the
Stipulation Authorizing Use Of Cash Collateral; Granting Adequate
Protection dated June 13, 2022. Rafatjoo asks the U.S. Bankruptcy
Court for the Central District of California, Los Angeles Division,
for authority to continue using cash collateral in accordance with
his agreement with Cathay Bank.
The Trustee desires to continue operations, collect cash
collateral, and utilize the cash collateral to pay the ordinary and
necessary expenses related to the preservation and maintenance of
operations. The Debtor is in default under the Loan Documents.
The parties agreed that all references in the Stipulation will now
mean November 19, 2022. Hence, the Stipulation as modified by the
Supplement will be in effect until the earlier of November 19 or a
Termination Date.
As adequate protection for the U.S. Small Business Administration,
the SBA has previously been granted replacement liens against its
prepetition collateral in the same order of priority, validity, and
extent as its prepetition liens. The Stipulation and the
Supplement, and any orders incorporating them are without prejudice
to the rights and privileges of the SBA, and nothing in the
Stipulation or the Supplement displaces those replacement liens.
Any order approving the Supplement will be effective immediately
upon its entry, and will be effective retroactive to October 25,
2022.
All other terms and conditions of the Stipulation are incorporated
by reference without any change.
A copy of the motion is available at https://bit.ly/3ssEQ1i from
PacerMonitor.com.
About Cherry Man Industries
Cherry Man Industries, Inc., sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. C.D. Calif. Case No. 22-11471) on March
17, 2022, listing $100 million to $500 million in assets and $10
million to $50 million in liabilities. Frank Lin, president of
Cherry Man Industries, signed the petition.
El Segundo, Calif.-based Cherry Man was started in 2002 by Frank
Lin. It is one of the largest nationwide importers and distributors
of office furniture case goods. It has five distribution centers
across the United States.
Judge Neil W. Bason oversees the case.
The Law Offices of Michael Jay Berger serves as the Debtor's legal
counsel.
An official committee of unsecured creditors has been appointed in
the case. The Committee has retained Kelley Drye & Warren LLP as
counsel.
Hamid R. Rafatjoo has been appointed as Chapter 11 Trustee. He is
represented by David Golubchik, Esq., at LEVENE, NEALE, BENDER, YOO
& GOLUBCHIK, L.L.P., as counsel.
Attorneys for Secured Creditor, Cathay Bank:
Michael J. Gomez, Esq.
Gerrick M. Warrington, Esq.
FRANDZEL ROBINS BLOOM & CSATO, L.C.
1000 Wilshire Boulevard, Nineteenth Floor
Los Angeles, CA 90017-2427
Telephone: (323) 852-1000
Facsimile: (323) 651-2577
E-mail: mgomez@frandzel.com
gwarrington@frandzel.com
CHILD'S TRUCKING: Taps Law Offices of Michael Jay Berger as Counsel
-------------------------------------------------------------------
Child's Trucking, LLC seeks approval from the U.S. Bankruptcy Court
for the Central District of California to employ the Law Offices of
Michael Jay Berger as its bankruptcy counsel.
The firm's services include:
(a) assisting the Debtor in drafting its bankruptcy schedules,
statement of financial affairs, and other necessary documents;
(b) assisting the Debtor in complying the requirements of the
Office of the U.S. Trustee;
(c) communicating with creditors to explain the facts and
circumstances surrounding the Debtor's Chapter 11 case, investigate
possible claims against the Debtor, and gain its cooperation with
regards to the continued business of the Debtor;
(d) performing other necessary legal services.
The hourly rates charged by the firm's attorneys and staff are as
follows:
Michael Jay Berger, Esq., Partner $595 per hour
Sofya Davtyan, Partner $545 per hour
Debra Reed, Mid-level Associate Attorney $435 per hour
Carolyn M. Afari, Mid-level Associate Attorney $435 per hour
Robert Poteete, Mid-level Associate Attorney $435 per hour
Gary Baddin, Bankruptcy Analyst/Field Agent $275 per hour
Senior Paralegals and Law Clerks $250 per hour
Bankruptcy Paralegals $200 per hour
The firm will be paid a retainer in the amount of $20,000.
Michael Jay Berger, Esq., the sole owner of the Law Offices of
Michael Jay Berger, 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:
Michael Jay Berger, Esq.
Law Offices of Michael Jay Berger
9454 Wilshire Blvd., 6th Floor
Beverly Hills, CA 90212-2929
Telephone: (310) 271-6223
Facsimile: (310) 271-9805
Email: michael.berger@bankruptcypower.com
About Child's Trucking
Child's Trucking, LLC -- https://childstruckinglic.com/ -- is a
licensed and DOT-registered trucking company running freight
hauling business from York, Ala.
Child's Trucking filed a petition for relief under Subchapter V of
Chapter 11 of the Bankruptcy Code (Bankr. C.D. Calif. Case No.
22-15362) on Oct. 1, 2022, with up to $10 million in both assets
and liabilities. Patrick McGinnis Fritz has been appointed as
Subchapter V trustee.
Judge Neil W. Bason oversees the case.
The Debtor is represented by Michael Jay Berger, Esq., at the Law
Offices of Michael Jay Borger.
COX BROTHERS: Amends OSPrin III Claim Pay Details
-------------------------------------------------
Cox Brothers Machining, Inc., submitted a Corrected Fourth Amended
Plan of Reorganization dated October 20, 2022.
This Plan of Reorganization provides for the continued operation of
CBM under the existing management. CBM proposes to make monthly
payments of approximately $13,073.00 for the maximum period of 60
months to fund the Plan of Reorganization.
CBM reduced its operating expenses and continues to attempt to find
cost cutting measures to maximize the monies available to support
this Plan of Reorganization. Under the Plan, administrative claims,
priority claims, and unsecured claims will be paid in full on the
Effective Date. The secured claims will be paid in full over a
period of 60 months. Funds for the payment of these claims will
come from the future operations of the Debtor's business and from
Debtor's cash and accounts.
Funds for the 60th month balloon payment to secured creditor OSPrin
III, LLC are expected to be obtained from replacement financing.
The Plan and funds will be administered by the Debtor's principal,
Russell Cox and CFO, Teri Cox, who is the spouse of Russell Cox.
The payments will be paid in accordance with their class, and then,
within the class, paid in accordance with the applicable priority,
as determined by this Plan.
Class 1 consists of the Claim of OSPrin III, LLC. OSPrin III, LLC
is owed $980,740.14 in principal, plus interest, fees, and attorney
fees on Loan No. 0905871844-00067 (the #67 Loan); Loan No.
0905871844-00026 (the #26 Loan); and, Loan No. 0905871844 00042
(the #42 Loan). OSPrin III, LLC will receive 2 payments of $50,000
each, paid on the Effective Date and upon the one-year anniversary
of the Effective Date (the "Initial Payments").
Additionally, and beginning on the Effective Date, OSPrin III, LLC
will receive monthly installment payments of principal and interest
calculated at a variable interest rate of 3.0% plus the prime
interest rate as published by the Wall Street Journal (WSJ)
amortized on a 10-year schedule. The current prime interest rate is
6.25% and therefore the initial Effective Rate is 9.25%. The
initial monthly payment amount calculated using the Effective Rate
is $11,956.24.
Cox Investments II, LLC entered in a Letter of Intent with Carefree
Group, Inc. on August 4, 2022 for the sale and purchase of the
property described as 7.92 acres and 112,500 sq. ft., commonly
known as 219 N. Horton St., Jackson, Michigan, for the gross sale
amount of $500,000. The parties have agreed to a 120day due
diligence period for inspections, including environmental testing.
The sale, if completed, is expected to pay off up to $500,000 on
the Cox Investments II, LLC and CBM debt. OSPrin III, LLC will
retain its mortgage on the remaining portion of the building owned
by Cox Investments II, LLC until OSPrin III, LLC is paid in full on
the CBM debt pursuant to the underlying loan documents.
Like in the prior iteration of the Plan, holders of allowed Class 3
claims of unsecured creditors shall receive a 100% distribution on
account of their allowed claims, exclusive of any post-petition
interest, from the proceeds paid in by the Debtor to fund the Plan.
Class 3 holders shall be paid in full on the Effective Date.
The instant Chapter 11 proceeding was commenced on February 22,
2022. Sales & revenue since filing are $771,739.80, Cost of Sales
were $505,743.81, and Expenses of $452,026.80. CBM has posted a
loss in post-petition months primarily due to CBM ramping up for
production of a $3.5 million contract for building products at John
Hopkins, Baltimore, Maryland.
A full-text copy of the Corrected Fourth Amended Plan dated October
20, 2022, is available at https://bit.ly/3faJduD from
PacerMonitor.com at no charge.
Attorney for the Debtor:
Don Darnell P55268, Esq.
8080 Grand St.
Dexter, MI 48130
Tel: (734) 424-5200
E-mail: dondarnell@darnell-law.com
About Cox Brothers Machining
Cox Brothers Machining, Inc., is in the business of fabrication of
structural steel components used in the construction and assembly
of bridges throughout the Mid-West American region. CBI runs its
business at a building located at 2300 E. Ganson St., Jackson,
Michigan 49202, a property owned by landlord Cox Investments II,
LLC.
Amid a maturity of debt owed to PrinsBank - Cox Bros. having had a
balloon payment on three loans due Feb. 15, 2022, Cox Brothers
Machining, Inc., sought protection under Subchapter V of Chapter 11
of the Bankruptcy Code (Bankr. E.D. Mich. Case No. 22-41255) on
Feb. 22, 2022. In the petition signed by Russell Cox, president,
the Debtor disclosed up to $10 million in both assets and
liabilities.
Judge Lisa S. Gretchko oversees the case.
Donald Darnell, Esq., at Darnell Law Office, is the Debtor's
counsel.
CSI COMPRESSCO: Announces Quarterly Distribution, Q3 Release Date
-----------------------------------------------------------------
CSI Compressco LP said the board of directors of its general
partner has declared a cash distribution attributable to the
quarter ended Sept. 30, 2022 of $0.01 per outstanding common unit,
or $0.04 per outstanding common unit on an annualized basis. This
cash distribution will be paid on Nov. 14, 2022 to all common
unitholders of record as of the close of business on Oct. 31, 2022.
CSI Compressco expects to release its third quarter 2022 results
before the opening of the market on Thursday, Nov. 3, 2022.
Following the release, CSI Compressco will host a conference call
at 10:30 a.m. Eastern Time to discuss the results. CSI Compressco
invites you to listen to the conference call by calling the
toll-free number 1-866-374-8397. The conference call will also be
available by live audio webcast and may be accessed through CSI
Compressco's website at www.csicompressco.com. The news release
will be available on CSI Compressco's website prior to the
conference call. An audio replay of the conference call will be
available at 1-877-344-7529, conference number 10172750, replay
code 6448716, for one week following the conference call and the
archived webcast will be available through CSI Compressco's website
for thirty days following the conference call.
About Compressco
CSI Compressco is a provider of compression services and equipment
for natural gas and oil production, gathering, artificial lift,
transmission, processing, and storage. CSI Compressco's compression
and related services business includes a fleet of approximately
4,900 compressor packages providing approximately 1.2 million in
aggregate horsepower, utilizing a full spectrum of low-, medium-
and high-horsepower engines. CSI Compressco also provides well
monitoring and automated sand separation services in conjunction
with compression and related services in Mexico. CSI Compressco's
aftermarket business provides compressor package reconfiguration
and maintenance services. CSI Compressco's customers comprise a
broad base of natural gas and oil exploration and production,
midstream, transmission, and storage companies operating throughout
many of the onshore producing regions of the United States, as well
as in a number of foreign countries, including Mexico, Canada and
Argentina. CSI Compressco is managed by Spartan Energy Partners.
CSI Compressco reported a net loss of $50.27 million for the year
ended Dec. 31, 2021, a net loss of $73.84 million for the year
ended Dec. 31, 2020, and a net loss of $20.97 million for the year
ended Dec. 31, 2019. As of Dec. 31, 2021, the Company had $722.36
million in total assets, $71.29 million in total current
liabilities, $649.91 million in total other liabilities, and $1.15
million in total partners' capital.
* * *
As reported by the TCR on Feb. 25, 2021, Moody's Investors Service
has completed a periodic review of the ratings of CSI Compressco LP
and other ratings that are associated with the same analytical
unit. Moody's said CSI Compressco's Caa1 corporate family rating
reflects its modest scale relative to its peers and high but
improving debt leverage.
CUTTING EDGE: Court OKs Interim Cash Collateral Access
------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas,
Galveston Division, authorized Cutting Edge RV Services, Inc. to
use cash collateral on an interim basis in accordance with its
agreement with CommunityBank of Texas, N.A., a division of
Allegiance Bank.
The parties agreed the Debtor may use cash collateral to pay
expenses in accordance with the operating budget.
On December 16, 2015, the Debtor executed certain Small Business
Administration loan documents in favor of CommunityBank:
- Borrowers: Heritage Pine Enterprises, LLC (non-Debtor
affiliated entity); Cutting Edge RV Services, Inc (Debtor).
- Facility A - CommunityBank: $750,000 Permanent Loan
- Facility B - $577,100 Interim Loan (six-month loan then
taken out by 2nd lien SBA financing)
Pursuant to the loan documents, CommunityBank holds valid and
perfected first priority liens and security interests in all
business assets of Debtor, both tangible and intangible, with the
exception of titled vehicles.
As of the Petition Date, all debt service for Facility A and
Facility B loan amounts are current. The debt is primarily serviced
by Heritage Pine Enterprises, LLC, which collects $12,500 in
monthly commercial lease payments from the Debtor.
As adequate protection, CommunityBank is granted a continued first
priority security interest in and lien upon all tangible and
intangible personal property acquired, generated or received by the
Debtor from and after the Petition Date.
CommunityBank's Replacement Lien will be valid, enforceable and
perfected without any further action by the Lender or the necessity
of any filing or execution of documents.
To the extent the replacement liens and adequate protection
payments provided in the Interim Order are insufficient to
adequately protect the Lender's interests in its Collateral,
CommunityBank will be entitled to a superpriority administrative
claim in an amount equivalent to any diminution in the overall
value of its Collateral (both Prepetition and Post Petition
Collateral) during the term of the Interim Order, pursuant to
section 507(b) of the Bankruptcy Code.
On or before November 4, 2022, and on the same day of each
consecutive month thereafter, the Debtor will make the payments to
its landlord in the amounts shown on the Operating Budget.
A final hearing on the matter is set for December 14, 2022, at 11
a.m.
A copy of the order is available at https://bit.ly/3SPNAcF from
PacerMonitor.com.
A copy of the budget is available at https://bit.ly/3VZPxG0 from
PacerMonitor.com.
The budget provides for total expenses, on a monthly basis, as
follows:
$41,967 for October 2022;
$41,717 for November 2022;
$50,342 for December 2022; and
$134,026 for January 2023.
About Cutting Edge RV Services, Inc.
Cutting Edge RV Services, Inc. sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 22-80182) on
October 10, 2022. In the petition signed by Lee Morris, vice
president, the Debtor disclosed up to $500,000 in assets and up to
$1 million in liabilities.
Judge Jeffrey P. Norman oversees the case.
Matthew Hoffman, Esq., at Hoffman & Saweris, P.C., is the Debtor's
legal counsel.
DESIGUAL: 2nd Circuit Affirms Toss of Chapter 11 COVID Lease Row
----------------------------------------------------------------
Vince Sullivan of Law360 reports that the Second Circuit affirmed a
lower court's decision Tuesday, Oct. 18, 2022, finding that fashion
retailer Desigual USA can't use the imposition of COVID-19 business
restrictions to get out of lease obligations for a Fifth Avenue
store.
Although this case arises in a bankruptcy proceeding, it is
essentially a breach of contract dispute between landlord and
tenant. DUSA, as tenant, and 605 Fifth Property Owner, LLC, as
landlord, are parties to a three-year commercial lease dated
January 17, 2020, for a retail space at 605 Fifth Avenue in New
York, New York.
DUSA argued that the Bankruptcy Court erred in concluding that DUSA
was not entitled to cancel the Lease because: (i) the fundamental
purpose of the Lease was frustrated by the unforeseeable effects of
the pandemic; (ii) New York courts have applied the
frustration-of-purpose doctrine to cancel leases in "much less
severe circumstances"; and (iii) both the frustration-of-purpose
and impossibility-of-performance doctrines "require abatement of
rent due during the government-ordered COVID-19 shutdown."
DUSA appealed before the District Court from the Bankruptcy Court's
Final Judgment entered on August 14, 2020, in an adversary
proceeding ("Final Judgment"). The Final Judgment, entered by
stipulation, incorporated the Bankruptcy Court's rulings on DUSA's
motion for a preliminary injunction. It dismissed DUSA's claims
against the Landlord. It also enjoined Appellee from drawing down
on a letter of credit, but only through August 14, 2020.
The District Court in a Sept. 29, 2021 ruling affirmed the
Bankruptcy Court's rejection of DUSA's claims for cancelation of,
or abatement of rent due under, the commercial lease agreement
between the parties.
The District Court said, "Here, the Bankruptcy Court correctly
determined that the impossibility defense is inapplicable because
"the parties contemplated situations such as this, and the lease
provided for them." (Hearing Tr. at ¶ 424.) The lease was entered
into by sophisticated commercial parties who anticipated that
future events, including "natural occurrences, . . . any other
condition beyond Landlord's reasonable control, " or "governmental
. . . controls or guidelines" might occur. (Lease § 5.05) The
parties agreed that in such an event, "Tenant shall not be entitled
to any damages . . . nor . . . relieve[d] . . . of the obligation
to pay all sums due." Id.; see also Urb. Archaeology Ltd., 2009 WL
8572326, at *5 ("The contract here was entered into by
sophisticated commercial parties who could have anticipated the
possibility that future events might result in financial
disadvantage on the part of either party, even if the precise cause
or extent of such financial disadvantage was not foreseen at the
time the contract was executed. Thus, under the circumstances
extant at bar the impossibility of performance doctrine does not
relieve plaintiff of its obligations under the Lease.") (citation
omitted). Thus, like the frustration-of-purpose doctrine, the
doctrine of impossibility does not relieve DUSA of its obligations
under the Lease because the event was foreseeable and accounted
for. See Gander Mountain Co. v. Islip U-Slip LLC, 923 F.Supp.2d
351, 362 ("Impossibility and frustration of purpose refer to two
distinct doctrines in contract law, but both require
unforeseeability.") (cleaned up); see also Ebert, 628 Fed.Appx. at
24 ("To establish impossibility, the inability to perform must be
produced by an unanticipated event that could not have been
foreseen or guarded against in the contract.") (cleaned up); Gap
Inc., 2021 WL 861121, at *10 ("Gap's impossibility defense fails
because the very text of the Lease demonstrates that the conditions
that Gap claims render performance impossible were foreseeable.");
A/R Retail LLC v. Hugo Boss Retail, Inc., 149 N.Y.S.3d 808, 827
(N.Y. Sup. Ct. 2021) ("To the extent Tenant's impossibility
argument is predicated on government orders - both during the
shutdown period and afterward - the force majeure provisions in the
Lease indicate that the risk of such disruptions were not
unforeseeable.")."
About NTS W. USA Corp.
NTS W. USA Corp., doing business as Desigual USA, doing business as
Desigual, is a distributor of clothing, accessories, and other
fashion products, with retail stores in the United States.
NTS W. USA Corp. filed a Chapter 11 petition (Bankr. S.D.N.Y. Case
No. 20-35769) on July 22, 2020. In the petition signed by CRO
Brian K. Ryniker, the Debtor was estimated to have $1 million to
$10 million in assets and $10 million to $50 million in
liabilities.
The Hon. Cecelia G. Morris presides over the case.
ARENT FOX LLP, serves as bankruptcy counsel to the Debtor.
Stretto, is the administrative advisor.
DIEBOLD NIXDORF: S&P Downgrades ICR to 'CC', Off Watch Negative
---------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Diebold
Nixdorf Inc. to 'CC' from 'CCC+', its issue-level rating on its
secured debt to 'CC' from 'CCC+', and its issue-level rating on its
senior unsecured notes to 'C' from 'CCC-'.
At the same time, S&P removed its issuer credit rating on the
company from CreditWatch, where S&P placed it with negative
implications on May 11, 2022.
The negative outlook reflects that S&P expects to lower its issuer
credit rating on Diebold to 'SD' (selective default) if the
transaction closes because S&P considers it to be a distressed
exchange.
The downgrade follows Diebold's announcement that it has entered
into an Transaction Support Agreement (TSA) with certain lenders to
restructure its debt profile, provide it with additional liquidity,
and extend its maturity runway. Under the proposed agreement, the
company would issue a new $400 million super-senior term loan due
July 2025 through a German subsidiary to provide it with a
much-needed liquidity infusion. The transaction would also provide
all of the debtholders with exposures to its existing revolver with
the opportunity to exchange their outstanding balance into a new
asset-based lending (ABL) facility due 2025. Concurrently, the
holders of Diebold's 2024 senior unsecured notes will be offered
the opportunity to exchange their principal balance at 95% of par
for a new second-lien term loan maturing in October 2026 and be
granted warrants for a 19.99% equity ownership position.
Furthermore, the existing term loan lenders can exchange 100% of
their principal amount into a new term loan facility maturing in
July 2025. Lastly, the holders of the company's senior secured
notes are relinquishing collateral under the accounts receivable
and inventory ABL jurisdictions, which S&P views as being more
disadvantaged than originally promised.
S&P said, "In the context of Diebold's poor operating trends,
declining liquidity position, and upcoming July and November 2023
debt maturities, we think the terms and considerations outlined
under the TSA represent a distressed transaction because we believe
the company would face the realistic possibility of a convention
default absent the debt restructuring. The pervasive nature of the
capital structure changes highlights Diebold's distressed position
and it is evident that this is not a traditional refinancing
undertaken in the normal course of healthy business operations. We
view the company's new capital structure as being materially
different to what it originally promised its lenders. As of the
company's announcement, holders of 78.8% of its outstanding term
loans, 59.3% of its unsecured notes due 2024, and 89.7% of its
secured notes due 2025 had signed on to the TSA.
"The negative outlook reflects that we expect to lower our issuer
credit rating on Diebold to 'SD' if the transaction closes because
we consider it to be a distressed exchange."
Diebold Nixdorf is an ATM and point-of-sale terminal manufacturer,
seller, and servicer. It is a partner to many of the top 100
financial institutions and the top 25 global retailers (as measured
by revenue scale). The company derived about 70% of its revenue
from its banking segment and the remainder from its retail segment
in 2021. Diebold Nixdorf maintains market share of about 30% of the
more than 3 million ATMs installed globally. The company generated
$3.9 billion of revenue in 2021.
ESG credit indicators: E-2, S-3, G-2
S&P said, "Social factors are a modestly negative consideration in
our credit rating analysis because we expect the role of physical
cash as a means of exchange to decline over time. Access to other
methods of payments, such as wire transfers and mobile-to-mobile
payments, is rising and we expect the need for ATM hardware will
decline as the use of alternative payments expands. The Federal
Reserve Bank of Atlanta estimated that cash was used in 26% of
domestic consumer payment transactions in 2019, down from 40% in
2012. We expect a further decline in the use of cash will be
reported for 2020 because societies embraced more digital payment
alternatives during the COVID-19 pandemic. According to a January
2021 Atlanta Fed survey, the share of consumers who said they used
cash at least once a month declined to 74.7% from 82.4% in the
year-ago period. We believe this risk factor offsets the rise in
the percentage of the world's population using banks. The World
Bank reported in 2017 that financial inclusion is on the rise, with
69% of adults having an account with a financial institution or a
mobile money service provider, up from 62% in 2014."
DIEBOLD NIXDORF: To Refinance Debt to Address Near-Term Maturities
------------------------------------------------------------------
Diebold Nixdorf said it entered into a comprehensive agreement with
key financial stakeholders to support transactions that would
refinance certain debt with near-term maturities and provide the
Company with $400 million in new capital.
The Company has entered into a Transaction Support Agreement (TSA)
with the holders of over a majority of its term loans and each
series of its outstanding secured and unsecured notes (or
approximately 78.8% of the aggregate principal amount of the
Company's existing term loans, about 59.3% of the aggregate
principal amount of the Company's existing unsecured notes due
2024, and approximately 89.7% of the aggregate principal amount of
the Company's existing secured notes due 2025). The transactions
contemplated by the TSA are subject to customary closing conditions
and achieving certain participation thresholds as set forth
therein. Upon consummation of the transactions contemplated by the
TSA, the Company will have extended its near-term debt maturities
and obtained additional liquidity. It is the Company's expectation
that the transactions contemplated by the TSA will be consummated
prior to Dec. 31, 2022.
The parties to the TSA have provided commitments subject to
satisfaction of the conditions specified therein, with respect to
the full $400 million in additional financing contemplated by the
TSA. However, the TSA provides that holders of the Company's
existing term loans, existing unsecured notes due 2024 and/or its
existing secured notes due 2025 who did not initially sign the TSA
but execute a joinder to the TSA by Oct. 27, 2022 will have the
opportunity to elect to provide commitments with respect to up to a
specified share of such additional financing, replacing certain of
the existing commitments. In addition, only parties who execute a
joinder to the TSA by such date will be eligible to receive certain
transaction premiums that are described in the TSA.
Octavio Marquez, Diebold Nixdorf president and chief executive
officer, said: "We are grateful for the support we received from
our lenders and noteholders. We believe the very rigorous and
in-depth diligence process, and the support for the TSA,
demonstrate the financial community's confidence in our long-term
strategic model and the resilience of our business. Our product
and solution set is as robust as it has ever been, with
consistently strong customer demand. By year-end 2022, backlog is
expected to be at approximately $1.3 billion, which equates to
securing approximately 80% of full-year 2023 Product revenue.
Additionally, of our $2.1 billion Services business, 70% of
revenues are recurring. This provides us with $1.4 billion in
contract coverage of our full-year 2023 Services revenue. Through
the refinancing described in this agreement, we will achieve
enhanced financial flexibility, including the ability to make
strategic investments in the business."
About Diebold Nixdorf
Diebold Nixdorf, Incorporated -- www.DieboldNixdorf.com --
automates, digitizes and transforms the way people bank and shop.
As a partner to the majority of the world's top 100 financial
institutions and top 25 global retailers, the Company's integrated
solutions connect digital and physical channels conveniently,
securely and efficiently for millions of consumers each day. The
Company has a presence in more than 100 countries with
approximately 22,000 employees worldwide.
Diebold Nixdorf reported a net loss of $78.1 million for the year
ended Dec. 31, 2021, a net loss of $267.8 million for the year
ended Dec. 31, 2020, and a net loss of $344.6 million for the year
ended Dec. 31, 2019. As of June 30, 2022, the Company had $3.18
billion in total assets, $1.65 billion in total current
liabilities, $2.41 billion in long-term debt, $92 million in
pensions, post-retirement and other benefits, $136 million in
deferred income taxes, $133.3 million in other liabilities, and
total equity of ($1.24 billion).
* * *
As reported by the TCR on May 25, 2022, Moody's Investors Service
downgraded Diebold Nixdorf, Inc.'s Corporate Family Rating to Caa2
from B2. Moody's said Diebold's operating performance has been
impacted by pandemic-related supply chain challenges, which were
unexpectedly exacerbated in Q1 2022 by social distancing measures
in China and the Russia-Ukraine military conflict.
Also in May 2022, S&P Global Ratings lowered its issuer credit
rating on Diebold Nixdorf Inc. to 'CCC+' from 'B-'. S&P said, "We
view a debt restructuring is a higher probability event over the
next 12 months considering recent developments. The company has
hired financial advisors to explore refinancing options for its
debt maturities in 2023 and 2024, though we have not reviewed the
company's plans."
DRIVERGENT INC: Seeks to Hire Stevenson & Bullock as Counsel
------------------------------------------------------------
Drivergent, Inc. seeks approval from the U.S. Bankruptcy Court for
the Eastern District of Michigan to employ Stevenson & Bullock,
P.L.C. to handle its Chapter 11 case.
The firm's services include:
a. preparing all schedules, reports and legal papers, and
appearing at bankruptcy court hearings; and
b. assisting the Debtor in all bankruptcy-related matters,
including representation in negotiations and proceedings related to
its bankruptcy case.
Stevenson & Bullock will be paid based upon its normal and usual
hourly billing rates and will be reimbursed for out-of-pocket
expenses incurred.
The firm received the sum of $11,738 for pre-bankruptcy fees and
expenses.
As disclosed in court filings, Stevenson & Bullock is a
"disinterested person" within the meaning of Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Elliot G. Crowder, Esq.
Stevenson & Bullock, P.L.C.
26100 American Drive, Suite 500
Southfield, MI 48034
Tel: (248) 354-7906
Fax: (248) 354-7907
Email: ecrowder@sbplclaw.com
About Drivergent Inc.
Fraser, Mich.-based Drivergent, Inc. offers numerous services to
its customers, including school bus route services, sedan route
services, athletic transportation and field-trip transportation
services, and school bus driver staffing across the Metro Detroit
area. The company is solely owned by David Holls and employs its
own sales, mechanical and operations staff.
Drivergent filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. E.D. Mich. Case No. 22-47987) on Oct. 12,
2022, with up to $500,000 in assets and up to $1 million in
liabilities. Charles M. Mouranie has been appointed as Subchapter V
trustee..
Charles D. Bullock, Esq., at Stevenson & Bullock, P.L.C, is the
Debtor's counsel.
ENJOY TECHNOLOGY: Unsecureds to Get 38% to 60% in Debtors' Plan
---------------------------------------------------------------
Legacy EJY Inc. et al., submitted a Combined Disclosure Statement
and Chapter 11 Plan of Liquidation dated October 14, 2022.
The Combined Disclosure Statement and Plan constitutes a
liquidating chapter 11 plan for the Debtors. The Debtors will be
dissolved under applicable law as soon as practicable upon the
closing of the Chapter 11 cases.
In July 2022, the Debtors won approval of proposed bid procedures
and the stalking horse agreement with Asurion, LLC (the buyer and
DIP lender). The Debtors and their advisors marketed the Debtors'
assets on a postpetition basis, reaching out to 32 prospective
buyers. But the Debtors did not receive a bid from such party or
any other party by the bid deadline on Aug. 8, 2022. Accordingly,
the Debtors selected Asurion (or its designee) as the successful
bidder. On Aug. 12, the Court approved the sale, and the sale was
consummated on Aug. 31. The Debtors repaid the DIP Facility in
full with the proceeds from the sale in accordance with the Final
DIP Order and Sale Order.
Under the Plan, Class 3A General Unsecured Claims totaling
$27,250,000 to $31,75,000 will recover 38% to 60% of their claims.
Each Holder of an Allowed General Unsecured Claim shall receive
(x)(i) its Pro Rata share (considering only Class 3A General
Unsecured Claims) of the GUC 3A Priority Amount and (ii) its Pro
Rata share (considering both Class 3A General Unsecured Claims as
reduced by distribution of the GUC 3A Priority Amount and Class 3B
Unsecured Note Claim) of the Remaining Distributable Assets or (y)
such other treatment as may be agreed upon by such Holder and the
Debtors or the Plan Administrator, as applicable. Class 3A is
impaired.
Class 3B Unsecured Note Claim totaling $10,136,986 will recover 0%
to 25% of their claims. The holder of an Allowed Unsecured Note
Claim shall receive, in full and final satisfaction, settlement,
release, and discharge of, and in exchange for, such Unsecured Note
Claim, its pro rata share (considering both Class 3A General
Unsecured Claims as reduced by distribution of the GUC 3A Priority
Amount and the Class 3B Unsecured Note Claim) of the Remaining
Distributable Assets, or such other treatment as may be agreed upon
by such Holder, on the one hand, and the Debtors or the Plan
Administrator, as applicable, on the other hand. For the avoidance
of doubt, the Holder of the Unsecured Note Claim shall not share in
the GUC 3A Priority Amount. Class 3B is impaired.
Allowed claims and any amounts necessary to wind down the Debtors'
Estates shall be paid from the Debtors' assets, subject to the
limitations and qualifications.
Co-Counsel to the Debtors:
Daniel J. DeFranceschi, Esq.
Paul N. Heath, Esq.
Brendan J. Schlauch, Esq.
RICHARDS, LAYTON & FINGER, P.A.
One Rodney Square, 920 North King Street
Wilmington, DE 19801
Tel: (302) 651-7700
Fax: (302) 651-7701
E-mail: defranceschi@rlf.com
heath@rlf.com
schlauch@rlf.com
- and -
Cullen Drescher Speckhart, Esq.
Weiru Fang, Esq.
COOLEY LLP
1299 Pennsylvania Avenue, NW, Suite 700
Washington, DC 20004
Tel: (202) 842-7800
Fax: (202) 842-7899
E-mail: cspeckhart@cooley.com
wfang@cooley.com
- and -
Michael A. Klein, Esq.
Evan Lazerowitz, Esq.
Joseph W. Brown, Esq.
55 Hudson Yards
New York, NY 10001
Tel: (212) 479-6000
Fax: (212) 479-6275
E-mail: mklein@cooley.com
elazerowitz@cooley.com
jbrown@cooley.com
A copy of the Combined Disclosure Statement and Chapter 11 Plan of
Liquidation dated Oct. 14, 2022, is available at
https://bit.ly/3eBx81u
from PacerMonitor.com.
About Enjoy Technology
Enjoy Technology, Inc. provides a commerce-at-home experience for
consumers through their network of mobile retail stores. It is
based in Palo Alto, Calif.
Enjoy Technology and affiliates, Enjoy Technology Operating Corp.
and Enjoy Technology, LLC, sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. D. Del. Lead Case No. 22-10580) on June
30, 2022. In the petition signed by Tiffany N. Meriweather, chief
legal officer and corporate secretary, Enjoy Technology, Inc.
disclosed $111,661,000 in total assets and $69,956,000 in
liabilities.
Judge J. Kate Stickles oversees the cases.
The Debtors tapped Cooley, LLP and Richards, Layton, and Finger
P.A. as legal counsels; Centerview Partners, LLC as investment
banker; PricewaterhouseCoopers, LLP as auditor; and Todd Zoha of AP
Services, LLC as chief financial officer. Stretto, Inc., is the
claims, noticing agent and administrative advisor.
Asurion, LLC, a Delaware Limited Liability Company, as DIP lender,
is represented by Gibson, Dunn & Crutcher LLP, Bass, Berry & Sims
PLC, and Pachulski Stang Ziehl & Jones, LLP.
The U.S. Trustee for Regions 3 and 9 appointed an official
committee to represent unsecured creditors in the Debtors' Chapter
11 cases on July 11, 2022. Fox Rothschild, LLP and FTI Consulting,
Inc. serve as the committee's legal counsel and financial advisor,
respectively.
* * *
On Aug. 12, the Court approved the sale of the Debtors' assets to
Asurion. The Debtors changed their names to Legacy EJY, Inc.,
Legacy EJY Operating Corp. and Legacy EJY Subsidiary LLC following
the sale of the assets.
FIGUEROA MOUNTAIN: Court OKs 17th Cash Collateral Stipulation
-------------------------------------------------------------
Judge Martin R. Barash of the U.S. Bankruptcy Court for the Central
District of California approved the 17th stipulation between
Figueroa Mountain Brewing, LLC, on the one hand, and secured
creditors, White Winston Select Asset Funds, LLC and SCS
Acquisition LLC, as successor in interest to Montecito Bank &
Trust, on the other hand, over the Debtor's use of cash
collateral.
The Debtor is authorized to use cash collateral, on a final basis,
through the earlier of (a) December 18, 2022, or (b) the date on
which the Debtor's cash on hand falls below the Cash Floor
initially set at $698,865.
During the period, the Debtor is permitted to use cash collateral
solely to pay the expenses set forth in the budget attached to the
17th Stipulation or further budget that may be approved by the
Parties or the Court, subject to the Order on Application for
Payment of: Interim Fees and/or Expenses (11 U.S.C. section 331)
for Lesnick, Prince & Pappas, LLP, with authority to deviate from
the expense line items contained in the Budget by no more than 25%
on a line-item basis, so long as the aggregate expense deviation is
no more than 15%, with any unused portions to carried over into the
following week(s), and to pay expenses owing to the Clerk of the
Bankruptcy Court and fees owing the Office of the United States
Trustee.
The Debtor's secured creditors will continue to receive replacement
liens in post-petition collateral, as adequate protection, pursuant
to the terms of the 17th Stipulation.
As and for additional adequate protection to White Winston, the
principal amount of the "CS Note" issued by Creekstone in favor of
White Winston will be increased from $2 million to $2.050 million,
and the Pre-Payment Sum will be increased from $1.5 million to
$1.550 million.
A copy of the order is available for free at https://bit.ly/3DxfLbV
from PacerMonitor.com.
About Figueroa Mountain Brewing LLC
Founded in 2020, Figueroa Mountain Brewing, LLC --
https://www.figmtnbrew.com/ -- is in the business of manufacturing
beer with principal place of business in Buellton, Calif.
Figueroa Mountain Brewing sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. C.D. Cal. Case No. 20-11208) on Oct. 5,
2020. Jaime Dietenhofer, the company's manager, signed the
petition.
At the time of filing, the Debtor had estimated assets of between
$1 million and $10 million and liabilities of the same range.
Judge Martin R. Barash oversees the case.
Lesnick Prince & Pappas LLP is the Debtor's legal counsel.
GAUCHO GROUP: Increases Maximum Notes Offering Amount to $1.5-Mil.
------------------------------------------------------------------
As previously disclosed on the Current Report on Form 8-K filed
with the Securities and Exchange Commission on Oct. 4, 2022, the
Board of Directors of Gaucho Group Holdings, Inc. approved an
offering of a series of 7% convertible promissory notes to
accredited investors on Oct. 4, 2022.
On Oct. 19, 2022, the Board of Directors of the Company approved an
increase to the maximum offering amount (inclusive of principal and
interest) of up to $1.5 million, with an additional $3,571,429
raised assuming a conversion price of the Notes at $0.21 and
exercise of all the warrants. All other terms of the Notes remain
the same.
As of Oct. 19, 2022, the Company had issued convertible promissory
notes with an aggregate principal amount of $814,000.
Meanwhile, the Company announced it will be holding a special
meeting of the stockholders on Dec. 19, 2022 at 12:00 p.m. Eastern
Time for purposes of complying with the Nasdaq Exchange Cap rule,
via webcast at https://www.cstproxy.com/gauchogroupholdings/sm2022.
On or about Nov. 8, 2022, a Notice of Special Meeting will be sent
by the Company to all stockholders of record as of Oct. 31, 2022,
and the Company's proxy statement and other meeting materials will
be made available to all stockholders beginning Nov. 8, 2022.
About Gaucho Group
Headquartered in New York, NY, Gaucho Group Holdings, Inc. --
http://www.algodongroup.com-- was incorporated on April 5, 1999.
Effective Oct. 1, 2018, the Company changed its name from Algodon
Wines & Luxury Development, Inc. to Algodon Group, Inc., and
effective March 11, 2019, the Company changed its name from Algodon
Group, Inc. to Gaucho Group Holdings, Inc. Through its
wholly-owned subsidiaries, GGH invests in, develops and operates
real estate projects in Argentina. GGH operates a hotel, golf and
tennis resort, vineyard and producing winery in addition to
developing residential lots located near the resort. In 2016, GGH
formed a new subsidiary and in 2018, established an e-commerce
platform for the manufacture and sale of high-end fashion and
accessories. The activities in Argentina are conducted through its
operating entities: InvestProperty Group, LLC, Algodon Global
Properties, LLC, The Algodon - Recoleta S.R.L, Algodon Properties
II S.R.L., and Algodon Wine Estates S.R.L. Algodon distributes its
wines in Europe through its United Kingdom entity, Algodon Europe,
LTD.
Gaucho Group reported a net loss of $2.39 million for the year
ended Dec. 31, 2021, a net loss of $5.78 million for the year
ended
Dec. 31, 2020, and a net loss of $6.96 million for the year ended
Dec. 31, 2019. As of June 30, 2022, the Company had $25.01 million
in total assets, $10.25 million in total liabilities and $14.75
million in total stockholders' equity.
GRAVITY HOLDINGS: Case Summary & One Unsecured Creditor
-------------------------------------------------------
Debtor: Gravity Holdings, Inc.
886 Valentine Lake Road
Elmer, LA 71424
Chapter 11 Petition Date: October 26, 2022
Court: United States Bankruptcy Court
Western District of Louisiana
Case No.: 22-80538
Judge: Hon. Stephen D. Wheelis
Debtor's Counsel: Thomas R. Willson, Esq.
THOMAS R. WILLSON
1330 Jackson Street, Suite C
Alexandria, LA 71301
Tel: (318) 442-8658
Email: rocky@rockywillsonlaw.com
Total Assets: $2,113,100
Total Liabilities: $2,077,503
The petition was signed by David Blumenstock, president-secretary.
The Debtor listed First Guaranty Bank as is only unsecured creditor
holding a claim of $982,304.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/OS3FSDY/Gravity_Holdings_Inc__lawbke-22-80538__0001.0.pdf?mcid=tGE4TAMA
HAWAIIAN HOLDINGS: Inks Transportation Services Deal with Amazon
----------------------------------------------------------------
Hawaiian Holdings, Inc., the parent company of Hawaiian Airlines,
Inc., said that Hawaiian Airlines and Amazon.com Services LLC, a
wholly owned subsidiary of Amazon.com, Inc., entered into an Air
Transportation Services Agreement to operate and maintain an
initial fleet of 10 Airbus A330-300 freighters starting in the fall
of 2023.
Hawaiian will maintain and fly Amazon's A330s under Hawaiian's FAA
air carrier certificate to move cargo between airports near the
online retailer's operations facilities. The initial 10 aircraft
will enter into service in 2023 and 2024. The agreement also
contemplates the ability to expand the fleet depending on Amazon's
future business needs.
"We are excited to help serve Amazon customers by providing
additional air cargo capacity and logistics support. This
recognizes our experience in providing safe and reliable
operations, our incredible front-line team, and our shared focus on
the customer," said Peter Ingram, president and CEO at Hawaiian
Airlines. "This relationship provides a catalyst to grow our
business and the unique opportunity to diversify our revenue
sources while capitalizing on our established strengths."
"We're thrilled to work with Hawaiian Airlines," said Sarah Rhoads,
vice president, Amazon Global Air. "They will maintain and operate
the next generation of aircraft in our fleet, which is a reflection
of the excellence they deliver as a renowned airline with their own
A330 aircraft.|
In preparation for service for Amazon, Hawaiian intends to
establish a pilot base on the continental U.S., grow existing
maintenance bases, and expand the hiring of pilots, mechanics,
dispatchers, supply chain employees and others who will help
support this new cargo operation.
In connection with the commercial agreement, the Company issued
Amazon warrants to acquire up to 15 percent (post-issuance) of its
common shares. The warrants are exercisable over the next nine
years.
About Hawaiian Holdings
Hawaiian Holdings, Inc.'s primary asset is sole ownership of all
issued and outstanding shares of common stock of Hawaiian Airlines,
Inc. The Company is engaged in the scheduled air transportation of
passengers and cargo amongst the Hawaiian Islands (the Neighbor
Island routes) and between the Hawaiian Islands and certain cities
in the United States (the North America routes together with the
Neighbor Island routes, the Domestic routes), and between the
Hawaiian Islands and the South Pacific, Australia, New Zealand and
Asia (the International routes), collectively referred to as its
Scheduled Operations.
Hawaiian Holdings reported a net loss of $144.77 million for the
year ended Dec. 31, 2021, a net loss of $510.93 million for the
year ended Dec. 31, 2020, and net income of $223.98 million for the
year ended Dec. 31, 2019. For the six months ended June 30, 2022,
the Company reported a net loss of $159.58 million. As of June 30,
2022, the Company had $4.37 billion in total assets, $1.25 billion
in total current liabilities, $1.60 billion in long-term debt,
$1.14 billion in total other liabilities and deferred credits, and
$375.55 million in total shareholders' equity.
HELEN MARIE SIMONSEN: Seeks OK to Hire Goldman Appraisal Service
----------------------------------------------------------------
Helen Marie Simonsen, Inc. seeks approval from the U.S. Bankruptcy
Court for the Southern District of New York to employ Goldman
Appraisal Service, Inc. to conduct an appraisal of its mixed-use
real property at 163 Berea Road, Walden, N.Y.
The firm will be paid the sum of $3,800 for its services, which
include property inspection and preparation of a narrative report.
Deposition testimony will be billed at $200 per hour while court
appearances will be billed at $750 per day, plus expenses.
Gerald Goldman, a partner at Goldman Appraisal Service, 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:
Gerald Goldman
Goldman Appraisal Service, Inc.
48 Main Street
Kingston, NY 12401
Tel: (845) 331-2321
Fax: (845) 331-2478
Email: goldmanappraisal@geraldgoldman.com
About Helen Marie Simonsen
Helen Marie Simonsen, Inc. filed a Chapter 11 bankruptcy petition
(Bankr. S.D.N.Y. Case No. 22-35460) on July 22, 2022, with as much
as $1 million in both assets and liabilities. Judge Cecelia G.
Morris oversees the case.
The Debtor is represented by the Law Office of Michael D. Pinsky,
P.C.
HELLAS COMMS: Judge Greenlights Investor Fraud Suit v. TPG/Apax
---------------------------------------------------------------
A New York Supreme Court Judge greenlit a decade-long investor
fraud lawsuit against private equity giants TPG, Inc. and Apax
Partners over alleged misconduct in bond offerings for defunct
Greek telecom business Hellas Communications, which resulted in
billions of dollars of losses for various groups of investors.
The suit arises from TPG/Apax's alleged scheme to strip almost a
billion dollars from the business after taking control, leaving it
vulnerable and ultimately destitute. Bondholders have been
pursuing TPG and Apax to recover their losses on grounds that TPG
and Apax are alter egos of Hellas and liable for fraud.
Lead counsel for the bondholders, Jonathan Kortmansky, noted that
"We are gratified for our clients for this decision. The court
reaffirms the viability of the investors' claims to recover for
defendants' intentional misconduct -- which has gone uncompensated
for far too long."
Bondholders also recently secured a consent judgment against Hellas
which will enable them to further pursue claims and judgment
recovery against the manager defendants.
The Hellas bondholders are represented by New York and San
Francisco trial boutique BraunHagey & Borden LLP partners Noah
Hagey, Jonathan Kortmansky, and Douglas Curran.
IFRESH INC: Authorized Common Stock Increased to 1 Billion Shares
-----------------------------------------------------------------
At the special meeting of shareholders of iFresh Inc. on Sept. 30,
2022, iFresh's shareholders approved a certificate of amendment to
iFresh's Certificate of Incorporation to increase the number of
authorized shares of iFresh's common stock to one billion shares.
The Charter Amendment became effective upon its filing with the
Secretary of State of Delaware on Oct. 20, 2022.
About iFresh Inc.
Headquartered in Long Island City, New York, iFresh Inc. --
http://www.ifreshmarket.com-- is an Asian American grocery
supermarket chain and online grocer on the east coast of U.S. With
eight retail supermarkets along the US eastern seaboard (with
additional stores in Connecticut opening soon), and one in-house
wholesale business strategically located in cities with a highly
concentrated Asian population, iFresh aims to satisfy the
increasing demands of Asian Americans (whose purchasing power has
been growing rapidly) for fresh and culturally unique produce,
seafood and other groceries that are not found in mainstream
supermarkets. With an in-house proprietary delivery network,
online sales channel and strong relations with farms that produce
Chinese specialty vegetables and fruits, iFresh is able to offer
fresh, high-quality specialty produce at competitive prices to a
growing base of customers.
iFresh Inc. reported a net loss of $8.29 million for the year ended
March 31, 2020, compared to a net loss of $12 million for the year
ended March 31, 2019. As of Dec. 31, 2020, the Company had $131.62
million in total assets, $110.33 million in total liabilities, and
$21.29 million in total shareholders' equity.
Friedman LLP, in New York, the Company's auditor since 2016, issued
a "going concern" qualification in its report dated Aug. 13, 2020,
citing that the Company has incurred significant operating losses,
has negative working capital of $28.6 million and is not in
compliance with its credit agreement. These conditions raise
substantial doubt about the Company's ability to continue as a
going concern.
INNERLINE ENGINEERING: Seeks Cash Collateral Access Thru Feb 2023
-----------------------------------------------------------------
Innerline Engineering, Inc. asks the U.S. Bankruptcy Court for the
Central District of California, Riverside Division, for authority
to use cash collateral on a final basis for the period from
November 15, 2022, through February 28, 2023.
The creditors with liens on the cash collateral are HOP Capital,
Danny Song, Dig Vac, LLC, APS Environmental Inc., U.S. Small
Business Administration, Herc Rentals, Inc., and the Internal
Revenue Service.
The Debtor believes the Secured Creditors are adequately protected
by the continued and uninterrupted operation of the business.
Notwithstanding, the Debtor will continue to make adequate
protection payments to HOP Capital, Danny Song, SBA, and the IRS.
The Debtor will give the Secured Creditors a replacement lien to
the extent the automatic stay, pursuant to 11 U.S.C. section 362,
as well as the use, sale, lease or grant results in a decrease in
the value of the Secured Creditors' interest in the cash collateral
on a postpetition basis retroactive to the Petition Date. The
Debtor believes the replacement lien is valid, perfected and
enforceable and will not be subject to dispute, avoidance, or
subordination, and this replacement lien need not be subject to
additional recording.
The Debtor will continue to make adequate protection payments as
follows:
Creditor Amount
-------- ------
HOP Capital $3,000
Danny Song $1,000
SBA $731
IRS $5,207
A copy of the motion and the Debtor's budget for the period from
November 16, 2022 to February 28, 2023 is available at
https://bit.ly/3zcUtxA from PacerMonitor.com.
The budget provides for total operating expenses, on a monthly
basis as follows:
$124,836 for December 2022;
$111,568 for January 2023; and
$111,853 for February 2023.
About Innerline Engineering
Corona, Cal.-based Innerline Engineering, Inc. --
http://www.innerlineengineering.com/-- offers a variety of
services to municipalities, utility owners, industrial facilities
and commercial property owners for the maintenance of their
underground utilities.
Innerline Engineering filed a petition for Chapter 11 protection
(Bankr. C.D. Cal. Case No. 21-14305) on Aug. 9, 2021, listing as
much as $10 million in both assets and liabilities. Thomas J.C.
Yeh, chief financial officer, signed the petition.
Judge Wayne E. Johnson oversees the case.
Resnik Hayes Moradi LLP serves as the Debtor's bankruptcy counsel.
INTERNATIONAL MARKETPLACE: Taps Rogers and Russell as Counsel
-------------------------------------------------------------
International Marketplace, LLC seeks approval from the U.S.
Bankruptcy Court for the District of Utah to employ Rogers and
Russell, PLLC as its legal counsel.
The firm's services include:
a. advising the Debtor regarding its powers and duties;
b. taking all necessary actions to protect and preserve the
estate of the Debtor;
c. assisting in preparing legal papers;
d. representing the Debtor in all appearances;
e. assisting in presenting the Debtor's proposed plan of
reorganization and all related transactions;
f. representing the Debtor at the hearing on plan confirmation
and all related matters; and
g. other legal services, which may be necessary.
The firm will be paid at these rates:
Steven M. Rogers $300 per hour
Nicholas R. Russell $275 per hour
Associates $200 to $225 per hour
Paraprofessionals $125 per hour
In addition, the firm will be reimbursed for out-of-pocket expenses
incurred.
The retainer is $15,000.
Steven Rogers, Esq., a partner at Rogers and Russell, 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:
Steven M. Rogers, Esq.
Nicholas R. Russell, Esq.
Rogers and Russell, PLLC
170 S. Main Street
Pleasant Grove, Utah 84062
Tel: (801) 899-6064
Fax: (801) 210-5388
Email: paralegal@roruss.com
About International Marketplace
International Marketplace, LLC filed a Chapter 11 bankruptcy
petition (Bankr. D. Utah Case No. 22-23972) on Oct. 10, 2022, with
up to $50,000 in assets and up to $500,000 in liabilities. Judge R.
Kimball Mosier oversees the case.
Rogers and Russell, PLLC is the Debtor's legal counsel.
JAFFAN INTERNATIONAL: Wins Interim Cash Collateral Access
---------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida, Tampa
Division, authorized Jaffan International, LLC to use the cash
collateral of US Foods, Inc. and Syndimate 2017 LP retroactive to
February 4, 2022.
The Debtor is permitted to use cash collateral to pay: (a) amounts
expressly authorized by the Court; (b) one quarter of the current
and necessary expenses set forth in the budget, plus an amount not
to exceed 10% for each line item; and (c) additional amounts as may
be expressly approved in writing by the Secured Creditors.
The Debtor is further authorized to make monthly adequate
protection payments to The Tamm Corporation, Inc. in the regular
contractual amount of $1,633. The Tamm Corporation, Inc.'s claim is
secured by a first position lien on the Debtor's 4COP liquor
license.
As adequate protection, the Secured Creditors will have perfected
post-petition liens against cash collateral to the same extent and
with the same validity and priority as their prepetition liens,
without the need to file or execute any document as may otherwise
be required under applicable non bankruptcy law.
The Debtor will maintain insurance coverage for its property in
accordance with the obligations under the loan and security
documents with the Secured Creditors.
A continued hearing on the matter is set for April 6, 2023 at 10
a.m.
A copy of the order is available at https://bit.ly/3TXK5ll from
PacerMonitor.com.
About Jaffan International, LLC
Jaffan International, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 22-00459) on
February 4, 2022. In the petition signed by Ahmad Maher AlJaffan,
managing member, the Debtor disclosed up to $500,000 in both assets
and liabilities.
Judge Roberta A. Colton oversees the case.
Buddy D. Ford, Esq., at Buddy D. Ford, P.A. is the Debtor's
counsel.
JAGUAR HEALTH: Amends Note Purchase Agreements With Streeterville
-----------------------------------------------------------------
Jaguar Health, Inc. and Napo Pharmaceuticals, Inc., the Company's
wholly-owned subsidiary (the Borrower), have entered into an
amendment with Streeterville Capital, LLC to (i) the note purchase
agreement, dated as of Jan. 19, 2021, by and between the Borrower
and Streeterville and (ii) the secured promissory note in the
original principal amount of $6,220,812.50 issued by the Borrower
to Streeterville as of Jan. 19, 2021, pursuant to the Note Purchase
Agreement, as amended by the global amendment, dated as of April
14, 2022, by and between Borrower and Streeterville.
Pursuant to the Global Amendment, (i) Streeterville will, under the
Note Purchase Agreement, no longer be entitled to the Return Bonus
(as defined in the Note Purchase Agreement) in the event of a sale
by Borrower of the program to pursue the TDPRV (as defined in the
Note Purchase Agreement); (ii) the Borrower may not prepay the Note
without Streeterville's prior written consent; and (iii) the
deadline to begin the Phase 1 clinical trial for Lechlemer, as
provided in the definition of the term "Trial Failure" in the Note,
is extended from July 1, 2022 to July 1, 2023.
About Jaguar Health
Jaguar Health, Inc. -- http://www.jaguar.health-- is a commercial
stage pharmaceuticals company focused on developing novel,
sustainably derived gastrointestinal products on a global basis.
The Company's wholly owned subsidiary, Napo Pharmaceuticals, Inc.,
focuses on developing and commercializing proprietary human
gastrointestinal pharmaceuticals for the global marketplace from
plants used traditionally in rainforest areas. Its Mytesi
(crofelemer) product is approved by the U.S. FDA for the
symptomatic relief of noninfectious diarrhea in adults with
HIV/AIDS on antiretroviral therapy.
Jaguar Health reported a net loss and comprehensive loss of $52.60
for the year ended Dec. 31, 2021, a net loss and comprehensive loss
of $33.81 million for the year ended Dec. 31, 2020, a net loss and
comprehensive loss of $38.54 million for the year ended Dec. 31,
2019, and a net loss of $32.15 million for the year ended Dec. 31,
2018. As of June 30, 2022, the Company had $49.88 million in total
assets, $47.13 million in total liabilities, and $2.76 million in
total stockholders' equity.
Larkspur, California-based RBSM, LLP, the Company's auditor since
2021, issued a "going concern" qualification in its report dated
March 11, 2022, citing that the Company has an accumulated deficit,
recurring losses, and expects continuing future losses. These
conditions raise substantial doubt about the Company's ability to
continue as a going concern.
JOG'S LLC: Court Confirms Subchapter V Plan
-------------------------------------------
Judge Edward A. Godoy has entered an order confirming the
Subchapter V Plan of Jog's LLC dated Aug. 31, 2022.
"Based on what was proffered in open court by the counsels for the
debtor and by the Sub ChapterV Trustee, which the court accepts,
and having reviewed the debtor's Chapter 11 Small
BusinessSubchapter V Plan of Reorganization dated August 31, 2022
(docket #36), we find it meets all the requirements of 11 U.S.C.
Sec. 1129(a) of the Bankruptcy Code and as a result, is a
consensualSubsection V plan under Section 1191(a). Accordingly, the
Chapter 11 Small BusinessSubchapter V Plan of Reorganization dated
August 31, 2022 (docket #36) is hereby confirmed," according to the
minutes of the confirmation hearing held Oct. 12, 2022.
Under the Plan, the Debtor is proposing a 10% payment to unsecured
creditors commencing on the Effective Date. The Debtor listed
unsecured claims in the total amount of $47,850.
The proposed plan will be funded by the Debtor's operations and
cash in its bank accounts. If a reasonable offer to purchase the
Debtor's assets is received and consummated, the sale of the assets
will be used to fund the Plan.
About JOG'S LLC
JOG'S LLC, doing business as Panaderia Jogs and Coffee Shop,
operates a coffee shop and bakery located in Caguas, Puerto Rico.
It was created by Ms. Yamilka Gonzalez, the sole shareholder and
officer.
The Debtor was forced to file for bankruptcy due to a previous
accountant's errors. Due to these actions, the Puerto Rico
Department of Treasury ("Hacienda") was looking to garnish the
Debtor's bank accounts and that would have left the Debtor unable
to operate its business.
JOG'S LLC sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D.P.R. Case No. 22-01525) on May 27, 2022. In the
petition signed by Yamilka J. Gonzalez Torres, as president, listed
estimated assets and liabilities between $50,000 and $100,000
each.
Carmen D Conde Torres, of C. Conde & Associates, is the Debtor's
counsel.
Carlos G Garcia Miranda is the Subchapter V trustee.
JUMBA LLC: Taps Cavazos Hendricks Poirot as Legal Counsel
---------------------------------------------------------
The Jumba, LLC seeks approval from the U.S. Bankruptcy Court for
the Northern District of Texas to employ Cavazos Hendricks Poirot,
P.C. as its legal counsel.
The firm's services include:
a. advising and consulting with the Debtor regarding the filing
of its bankruptcy schedules, statement of financial affairs and
pleadings;
b. advising and consulting with the Debtor concerning questions
arising in the administration of its estate and concerning the
Debtor's rights and remedies with regard to the estate's assets and
claims of creditors;
c. appearing for, prosecuting, defending and representing the
Debtor's interest in suits arising in or related to its Chapter 11
case;
d. assisting in the preparation of legal papers; and
e. investigating what means may be necessary to preserve certain
property rights owned by the estate and taking all necessary
actions for the preservation or liquidation of such assets.
Cavazos will be paid at these rates:
Attorneys $250 to $550 per hour
Paraprofessionals $70 to $170 per hour
The firm received a retainer of $15,000 from the Debtor.
Lyndel Anne Vargas, Esq., a partner at Cavazos, disclosed in court
filings that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Lyndel Anne Vargas, Esq.
Cavazos Hendricks Poirot, P.C.
Suite 570, Founders Square
900 Jackson Street
Dallas, TX 75202
Phone: (214) 573-7322
Fax: (214) 573-7399
Email: LVargas@chfirm.com
About The Jumba
The Jumba, LLC, a company in Haltom, Texas, sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Texas Case No.
22-31740) on Sept. 23, 2022. In the petition filed by its manager,
Andrea Vernon, the Debtor reported assets between $10 million and
$50 million and liabilities between $1 million and $10 million.
Judge Stacey G. Jernigan oversees the case.
The Debtor is represented by Lyndel Anne Vargas of Cavazos
Hendricks Poirot, P.C.
K STREET: Case Summary & Six Unsecured Creditors
------------------------------------------------
Debtor: K Street, LLC
1219 K St. NE
Suite 110
Washington, DC 20002
Business Description: The Debtor is a Single Asset Real Estate (as
defined in 11 U.S.C. Section 101(51B)).
Chapter 11 Petition Date: October 25, 2022
Court: United States Bankruptcy Court
District of Columbia
Case No.: 22-00198
Judge: Hon. Elizabeth L. Gunn
Debtor's Counsel: John D. Burns, Esq.
THE BURNS LAW FIRM, LLC
6303 Ivy Lane, Ste 102
Greenbelt, MD 20770
Tel: 301-441-8780
Email: jburns@burnsbankruptcyfirm.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Habte Sequar, president/member.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/BBE4POQ/K_Street_LLC__dcbke-22-00198__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's Six Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
1. Kenneth Welch Business Loan $2,900,000
910 M St., NW
Unit 1130
Washington, DC, 20001
2. BBGM/Architects & Interiors P.C. $66,943
c/o John P. Williams, Esq.
1010 Wisconsin Ave. ,NW, Suite 305
Washington, DC, 20007
3. Pepco Utility Services $26,000
701 9th St. NW
Washington, DC, 20068
4. Republic Services Trash Collection $0
300 Ritchie Rd.
Capitol Heights, MD, 20743
5. Chenault Insurance Insurance $0
329 Prince George St.
Laurel, MD, 20707
6. DC Water Utility Services $0
1385 Canal Street NE
Washington, DC, 20003
KABBAGE INC: Seeks Cash Collateral Access
-----------------------------------------
Kabbage, Inc. d/b/a KServicing and its debtor-affiliates ask the
U.S. Bankruptcy Court for the District of Delaware for authority to
use cash collateral and provide adequate protection to the Federal
Reserve Bank of San Francisco.
The Debtor requires the use of cash collateral to pay the expenses
incurred to administer the Debtors' Chapter 11 Cases and working
capital necessary to operate its business.
As of the Petition Date, the Debtors were indebted to the Reserve
Bank (i) in the aggregate principal amount of approximately $536.4
million in respect of outstanding Advances under the Program
Agreements plus (ii) accrued and unpaid interest and costs and
expenses including, without limitation, attorney's fees, agent's
fees, other professional fees and disbursements and other
obligations owing under the Program Agreements.
The Debtors' business solely consists of servicing its loan
portfolio, which, as of the Petition Date, consists in part of
loans issued to small businesses under the Paycheck Protection
Program with an aggregate outstanding principal amount of
approximately $1.3 billion. The Debtors partnered with the Small
Business Association to originate and service PPP Loans, which
consisted partly of PPP Loans that the Debtors originated pursuant
to the Reserve Bank's Paycheck Protection Program Liquidity
facility. The Debtors own and service such loans and have pledged
these loans as collateral to the Reserve Bank, which are guaranteed
by the SBA.
On April 9, 2020, to support the effectiveness of the PPP, the
Board of Governors of the Federal Reserve System, with the
concurrence of the U.S. Treasury, authorized the establishment of
the PPPLF, pursuant to which PPP-eligible lenders could enter into
agreements with the Reserve Bank to obtain funding for PPPLF loans.
To obtain PPPLF financing, the Debtors and the Federal Reserve
entered into the Paycheck Protection Program Liquidity Facility
Letters of Agreement.
Under the Program Agreements, the Debtors were authorized to
request advances from the Reserve Bank that were secured by the
PPPLF Collateral and mature on the respective maturity dates of
such collateral. The Reserve Bank has asserted that various
defaults have occurred under the PPPLF Documents and memorialized
its position in a correspondence sent to the Debtors on October 1,
2022.
The total amount of the Advances borrowed by the Debtors pursuant
to the Program Agreements is approximately $1.6 billion.
The Debtors are providing the Reserve Bank with adequate protection
in the form of, among other things: adequate protection liens,
payment of professional fees, covenants including working
cooperatively with the Reserve Bank to identify potential third
party loan servicers for the remaining PPP Loans that constitute
PPPLF Collateral and to cooperate and reasonably assist in the
transfer of the loan portfolio to a third-party servicer, and
informational and reporting rights.
The Debtors' right to use the cash collateral will terminate
automatically and without the need for notice or demand by the
Reserve Bank or any further order of the Court upon the occurrence
of any of the following, unless waived by the Reserve Bank:
(a) The appointment of a chapter 11 trustee or of an examiner
with expanded powers in the Chapter 11 Cases;
(b) The conversion of the Chapter 11 Cases to a case under
chapter 7 of the Bankruptcy Code;
(c) The dismissal of the Chapter 11 Cases;
(d) A determination by the Court that a material violation or
breach of any of the provisions of the Proposed Order has
occurred;
(e) Any other (i.e., not material) violation or breach of any
of the provisions of the Proposed Order that is not disputed or
cured within five business days of written notice from the Reserve
Bank;
(f) If any claim or lien having a priority superior or pari
passu with those granted by the Proposed Order to the Reserve Bank
is granted or permitted by an order of the Court or hereafter
entered in the Chapter 11 Cases, which any of the Debtors'
obligations pursuant to the Program Agreements are outstanding;
(g) If the rights, remedies, power, privileges, claims, liens,
and priorities of the Reserve Bank provided for in the Proposed
Order or otherwise are adversely modified, altered, eliminated, or
impaired in any manner by any subsequent order or judgment, by any
plan of liquidation in the Chapter 11 Cases, by the dismissal or
conversion of the Chapter 11 Cases, or in any Successor Case, or to
the extent the Debtors commence, support, or join in a motion, suit
or other proceeding against the Reserve Bank that seeks such
relief; and
(h) The effective date of any plan of liquidation in the
Chapter 11 Cases that has been confirmed by Court order.
A copy of the motion is available at https://bit.ly/3Dv3QuU from
PacerMonitor.com.
About Kabbage Inc.
Founded in 2010 and headquartered in Atlanta, Georgia, Legacy
Kabbage (a predecessor of KServicing) -- http://www.kservicing.com/
-- was one of the leading fintech providers of working capital to
small businesses for over a decade. Legacy Kabbage began as a
proprietary online lending platform for small businesses, providing
loan services to over 250,000 American small businesses, many of
which were businesses that struggled to receive adequate funding
through traditional banking institutions. From 2020-2021, the
Company provided and facilitated necessary funding to small
business owners through PPP loans during the COVID-19 pandemic. The
Company's existing technology infrastructure spearheaded its PPP
work, which led to a total of $7 billion in loans being originated
by the Company.
The origination and servicing of PPP Loans and small business loans
to eligible borrowers was critical during a time of unprecedented
health and economic uncertainty brought about by the COVID-19
pandemic. On Aug. 16, 2020, much of the Company's business was sold
to American Express Travel Related Services Company, Inc. As a
result of the merger, KServicing now operates in a limited capacity
as (i) a servicer and subservicer of PPP Loans, (ii) a software
services provider for lenders of PPP Loans, and (iii) a servicer of
a minor portfolio of non-PPP small business loans.
To implement the wind down of their businesses, on Oct. 3, 2022,
Kabbage, Inc. d/b/a KServicing and certain of its affiliates each
filed a voluntary petition for relief under Chapter 11 of the
United States Bankruptcy Code (Bankr. D. Del. Lead Case No.
22-10951). Judge Craig T. Goldblatt oversees the cases.
Kabbage Inc. estimated $500 million to $1 billion in assets and
debt as of the bankruptcy filing.
The Debtors tapped Weil, Gotshal & Manges, LLP as general counsel;
Richards, Layton & Finger, PA as local counsel; AlixPartners, LLC
as financial advisor; KPMG International Limited as fraud review
services provider; and Jones Day, LLP as government investigations
counsel. Greenberg Traurig is counsel to the Debtors' board of
directors. Omni Agent Solutions, Inc. is the claims agent and
administrative advisor.
LAPEER AVIATION: CG Unsecured Creditors Out of Money in Plan
------------------------------------------------------------
Lapeer Aviation, Inc., et al., submitted their Third Amended Plan
of Reorganization under Subchapter V of Chapter 11 of the
Bankruptcy Code.
The result of the bankruptcy petitions filed by the Debtors has
thus far been positive. The Debtors have experienced an increase
in business and customer interest since the Petition Dates. While
this increase in interest and business does not appear to be
directly related to the bankruptcy cases, the automatic stay has
negated the excessive financial burden caused by litigation,
allowing the Debtors to become profitable.
The Debtor's financial projections show that the Debtors will have
projected disposable income for the period described in Section
1191(c)(2) of $272,754 for LAI. The final Plan payment is expected
to be paid on or about March 31, 2027.
This Plan proposes to pay creditors of the debtor LAI from the
Debtors' cash flow from operations and future income.
Under the Plan, holders of Class I Allowed Unsecured Claims against
LAI will receive a pro rata distribution attributable to its
allowed general unsecured claim based on quarterly payments each
year by the Debtor from the Debtor's Projected Disposable Income
for a period of 5 years. The first payment shall be the first day
of the month at the beginning of the second calendar quarter after
the Effective Date. Such payments shall continue to be made
quarterly on the first day of each calendar quarter thereafter for
a period of 5 years from the first payment. Each quarterly payment
shall total $13,638, to be divided pro rata. Class I is impaired.
Class V All General Unsecured Creditors of CG Acquisitions won't
receive anything. There will be no distribution to Class V, as
there are no funds available for distribution.
The Debtor's counsel:
Zachary R. Tucker, Esq.
WINEGARDEN, HALEY, LINDHOLM, TUCKER & HIMELHOCH, P.L.C.
9460 S. Saginaw Rd., Suite A
Grand Blanc, MI 48439
Tel: (810) 579-3600
E-mail: ztucker@winegarden-law.com
A copy of the Third Amended Plan of Reorganization dated Oct. 14,
2022, is available at https://bit.ly/3CC7v8K from
PacerMonitor.com.
About Lapeer Aviation
Since 1997, Lapeer Aviation, Inc., has operated as a fixed-based
operator ("FBO") at the "D95" airport in Mayfield Township,
Michigan. D95 is home to runways, hangers, and other
accommodations which LAI operates pursuant to agreement with
Mayfield Township. The FBO offers a wide range of services to
aviators across the country, including but not limited to aircraft
maintenance. LAI also operates a flight school at D95 where
aspiring aviators can take classes in an effort to earn a pilot's
license.
All of the shares of LAI were purchased by CG Acquisitions, LLC, on
or about June 22, 2018. Since that date, the current member of CG
Gene Kopczyk has been involved with FBO operations. The FBO
currently has 8 full time employees and is a dealer for one of the
largest manufacturers of avionics equipment in the country.
On Dec. 26, 2018, creditor Carl Jennings filed a lawsuit against
LAI alleging that LAI owed him certain sums as a result of an
alleged contract which allegedly existed prior to the acquisition
of the LAI shares by CG. LAI defended against this lawsuit and
continues to believe that the claims do not have merit.
After the filing of the aforementioned state court lawsuit, Mr.
Jennings intentionally and repeatedly interfered with the business
operations of LAI. As a result, LAI filed suit against Mr.
Jennings seeking damages and other relief. On Aug. 26, 2020, Mr.
Jennings received an assignment of any interest in CG and/or LAI
Christopher Lewis may have had. This assignment caused Gene
Kopczyk to be the only member of LAI's only shareholder CG, to the
extent that this was not already the case.
Notwithstanding the fact that he had no right to manage or control
the affairs of LAI or CG, Mr. Jennings attempted to use the
assignment he received in an effort to further interfere with the
Debtors' business operations.
Lapeer Aviation, Inc., filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Mich. Case No.
21-31500) on Nov. 5, 2021, listing under $1 million in both assets
and liabilities. Gene Kopczyk, president, signed the petition.
CG Acquisitions, LLC, an affiliate, also sought Chapter 11
protection (Case No. 21-31511)
Judge Joel D. Applebaum oversees the cases.
Winegarden, Haley, Lindholm, Tucker & Himelhoch, PLC, serves as the
Debtors' legal counsel.
LUMALE GROUP: SARE Files for Chapter 11 Bankruptcy
--------------------------------------------------
Lumale Group Inc filed for chapter 11 protection in the Eastern
District of New York.
The Debtor, a Single Asset Real Estate, says it owns a
single-family residence at 10-06 160 Street, Whitestone, NY, valued
at $1.15 million. Secured creditor Select Portfolio Servicing INc.
is owed $1.1 million.
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
Nov. 21, 2022 at 11:00 AM Filed by Office of the United States
Trustee.
About Lumale Group Inc
Lumale Group Inc. is a Single Asset Real Estate (as defined in 11
U.S.C. Sec. 101(51B)).
Lumale Group Inc. filed a petition for relief under Chapter 11 of
the Bankruptcy Code (Bankr. E.D.N.Y. Case No. 22-42597 ) on Oct.
19, 2022. In the petition filed by Laura Ferris, as president, the
Debtor reported assets and liabilities between $1 million and $10
million.
The Debtor is represented by Francis E. Hemmings, Esq. of Law
Offices of Francis E. Hemmings PLLC.
M&M CREATIVE: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: M&M Creative Laminants, Inc.
4 Fifth Street
Pittsburgh, PA 15215
Business Description: The Debtor is a Pittsburgh-based countertop
and cabinet fabrication facility.
Chapter 11 Petition Date: October 26, 2022
Court: United States Bankruptcy Court
Western District of Pennsylvania
Case No.: 22-22116
Debtor's Counsel: John Lacher, Esq.
LYNCH LAW GROUP LLC
501 Smith Drive Suite 3
Cranberry Township, PA 16066
Tel: 412-897-6484
Email: jlacher@lynchlaw-group.com
Total Assets: $187,294
Total Liabilities: $1,411,673
The petition was signed by Derik E. Morrow, Sr., as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/ZLNOGHQ/MM_Creative_Laminants_Inc__pawbke-22-22116__0001.0.pdf?mcid=tGE4TAMA
MADISON IAQ: Moody's Lowers CFR to 'B3', Outlook Stable
-------------------------------------------------------
Moody's Investors Service downgraded the corporate family rating of
Madison IAQ LLC to B3 from B2 and the probability of default rating
to B3-PD from B2-PD. Concurrently, Moody's downgraded the senior
secured rating to B2 from B1 and the senior unsecured rating to
Caa2 from Caa1. The outlook is stable.
The ratings downgrade reflects the company's failure to reduce its
very high financial leverage (measured as adjusted debt/EBITDA)
relative to Moody's expectations following the acquisitions of
Nortek Air and Big Ass Fans LLC in 2021. The company has yet to
deliver the free cash flow Moody's expected at the time of the
acquisitions. Moody's believes cost inflation, softness in
residential and certain commercial market demand and higher than
expected working capital investment contributed to the shortfall.
Moody's believes the demand within the residential and commercial
markets will decline in 2023. As a result, Moody's forecasts
Madison IAQ's earnings to contract in 2023, although potential
improvements in working capital management would help offset
related pressure on free cash flow. Nonetheless, Moody's expects
modest amounts of free cash flow generation (about 1.5% of debt)
and thus little debt retirement above the scheduled amortization on
the first lien term loan, resulting in Debt/EBITDA remaining above
7.5x.
Downgrades:
Issuer: Madison IAQ LLC
Corporate Family Rating, Downgraded to B3 from B2
Probability of Default Rating, Downgraded to B3-PD from B2-PD
Senior Secured Bank Credit Facility, Downgraded to
B2 (LGD3) from B1 (LGD3)
Senior Secured Regular Bond/Debenture, Downgraded to
B2 (LGD3) from B1 (LGD3)
Senior Unsecured Regular Bond/Debenture, Downgraded to
Caa2 (LGD5) from Caa1 (LGD5)
Outlook Actions:
Issuer: Madison IAQ LLC
Outlook, Remains Stable
RATINGS RATIONALE
Madison IAQ's B3 CFR reflects the company's high financial leverage
and niche market focus on indoor air quality products. The company
faces earnings headwinds from ongoing contraction in residential
construction and weakness in certain commercial end-markets.
Moody's projects the company's revenue to decline by a low
single-digit percentage in 2023 but EBITDA margins to remain at the
current level of close to 20%. The rating also reflects the
company's high debt levels of $4.5 billion (adjusted for pension
and operating leases). Operating cash flow will also be burdened by
higher interest rates. Each 50-basis point increase in interest
rates will increase the company's annual interest burden by about
$13 million. Moody's projects limited debt reduction and believes
that the company will prioritize growth through acquisitions in
coming years.
Nonetheless, the ratings are supported by the company's competitive
scale with an established market position. Despite the recent
decline, the company has good profitability with EBITDA margins of
close to 20%. This, in part, reflects the significant contribution
from replacement and retrofit parts (over 60% of sales) that have
higher margins and help mitigate downward pressure during troughs
in economic cycles.
Moody's expects the company will maintain adequate liquidity.
Liquidity sources include $61 million of cash at the end of June
2022, availability under the $200 million revolving credit facility
and projected modest free cash flow. The company paid down $30
million of its revolver borrowings in October 2022, leaving
approximately $180 million available under the facility.
The stable outlook reflects Moody's expectation that financial
leverage will remain high and that the company will generate modest
positive free cash flow despite some contraction in earnings
through 2023.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings could be downgraded if Madison IAQ's earnings significantly
decline such that leverage is sustained above 8.0x, if free cash
flow reduces to break-even levels or the company demonstrates
increasing reliance on its revolving credit facility. A material
debt-financed acquisition could also result in a ratings
downgrade.
The ratings could be upgraded following sustained improvement in
earnings and free cash flow generation that leads to debt
reduction, sustaining Debt/EBITDA below 6x.
The principal methodology used in these ratings was Manufacturing
published in September 2021.
Headquartered in Chicago, Illinois, Madison IAQ manufactures indoor
air quality solutions for commercial and residential establishments
including hospitals, education, hospitality, distribution, retail,
residential, service, office and manufacturing facilities. Revenues
for the last twelve months ended June 2022 were $3.0 billion.
MASSACHUSETTS DEV'T: Moody's Affirms Ba1 on $131MM Revenue Bonds
----------------------------------------------------------------
Moody's Investors Service has affirmed the Ba1 rating of
approximately $131 million outstanding Massachusetts Development
Finance Agency's Revenue Bonds, Provident Commonwealth Education
Resources II Issue, UMass Dartmouth Student Housing Project, Series
2018. Moody's also affirms the rating outlook as negative.
RATINGS RATIONALE
The Ba1 rating affirmation reflects the project's weakened
financial position following unfavorable occupancy trends
commencing with its fall 2020 opening at 22% occupancy. While the
project achieved 78.4% occupancy by fall 2021, largely due to the
lifting of Covid-related restrictions, fall 2022 stands at 91.2%
occupancy which is still below pro forma projections of 95%. Fiscal
year end (FYE) December 31, 2021 financial performance generated
Moody's adjusted debt service coverage (DSC) of 0.60x. Timely debt
service for FY 2021 relied on the use of excess reserve balances
including capitalized interest. Moody's anticipate the project will
maintain high occupancy and generate sufficient DSC at FYE 2022 and
FYE 2023 with no need to tap on the debt service reserve (DSR)
fund.
RATING OUTLOOK
The negative outlook incorporates the project's likely inability to
meet the minimum 1.20x DSC ratio at FYE December 31, 2022. Based on
current projections by the borrower FYE December 31, 2022
operations will be breakeven. A turnaround in the project's
financial performance will rely heavily on the ability of UMass
Dartmouth to stem undergraduate enrollment losses which have been
on a multiyear declining trend.
FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATING
-- Multiyear trend of DSC in excess of 1.20x including
payment of all subordinated expenses and funding of
renewal and replacements
-- Substantially higher support from the university that
materially improves project occupancy and cash flow
FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATING
-- Deteriorating occupancy levels leading to a rapid
decline in financial position
-- Further deterioration of revenue or increased expense
growth that results in a draw on the DSR fund
LEGAL SECURITY
Project revenues comprise the primary source of revenue and
security for the bonds. The bond trustee will also have a security
interest in various funds, such as the Bond Fund, Debt Service
Reserve Fund, and the Repair and Replacement Fund, as provided by
the Trust Agreement.
PROFILE
Provident Commonwealth Education Resources II Inc. formed in 2018
for the purpose of developing, constructing, owning and operating
student housing on behalf of UMass Dartmouth.
METHODOLOGY
The principal methodology used in this rating was Global Housing
Projects published in June 2017.
MERCURITY FINTECH: To Hold Annual Meeting on Nov. 21
----------------------------------------------------
Mercurity Fintech Holding Inc. notified its shareholders that an
Annual Meeting will be held on Nov. 21, 2022, Beijing Time, at Room
1215, Xin'nan Block No.2, Yuehai Street, Nanshan District,
Shenzhen, 518000, Guangdong Province, People's Republic of China,
to consider and vote upon the following proposals:
1. To elect 11 nominees to serve on the Company's Board of
Directors until the next annual shareholders meeting and until
their successors are duly elected and qualified;
2. To approve a reverse stock split of the Company's issued
ordinary shares at a ratio of not less than one-for-360 and not
more than one-for-720, with the exact ratio to be set at a whole
number within this range to be determined by the Company's Board,
or any duly constituted committee thereof, in its discretion;
3. Subject to the Shareholders' approval of Proposal Two and the
Board's implementation of the Reverse Split, to suspend the trading
of the Company's American Depositary Receipts/Shares, terminate the
deposit agreement for the ADRs among the Company, its depositary
bank, Citibank, N.A., and the holders and beneficial owners of the
Company's ADRs, the exchange of ADRs for the corresponding ordinary
shares of the Company and commence trading of the Company's
ordinary shares on the Nasdaq Stock Market upon the effectiveness
of the Reverse Split; and
4. To transact other such business as may properly come before
the Meeting or any adjournment thereof.
Holders of record of the Company's Ordinary Shares at the close of
business on Oct. 4, 2022 will be entitled to notice of, and to vote
at, this Meeting and any adjournment or postponement thereof.
About Mercurity
Formerly known as JMU Limited, Mercurity Fintech Holding Inc. is a
digital fintech group powered by blockchain technology. The
Company's primary business scope includes digital asset trading,
asset digitization, cross-border remittance and other services,
providing compliant, professional, and highly efficient digital
financial services to its customers. The Company recently began
to narrow in on Bitcoin mining, digital currency investment and
trading, and other related fields. This shift has enabled the
company to deepen its involvement in all aspects of the blockchain
industry, from production to circulation.
Mercurity reported a net loss of $20.75 million for the year ended
Dec. 31, 2021, a net loss of $1.65 million for the year ended
Dec. 31, 2020, a net loss of $1.22 million for the year ended Dec.
31, 2019, a net loss of $123.24 million for the year ended Dec. 31,
2018, and a net loss of $161.90 million for the year ended Dec. 31,
2017.
MINESEN COMPANY: Chapter 11 Trustee Taps Klevansky Piper as Counsel
-------------------------------------------------------------------
Dane Field, Chapter 11 trustee for The Minesen Company, received
approval from the U.S. Bankruptcy Court for the District of Hawaii
to employ Klevansky Piper, LLP as his legal counsel.
The firm will give legal advice regarding the duties of the trustee
under the Bankruptcy Code, assist in dealings with the Debtor and
creditors, prepare a bankruptcy plan, and provide other legal
services.
The hourly rates charged by the firm range from $150 to $540.
As disclosed in court filings, Klevansky Piper is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Simon Klevansky, Esq.
Alika Piper, Esq.
Klevansky Piper, LLP
841 Bishop Street, Suite 1707
Honolulu, HI 96813
Tel: (808) 536-0200
Fax: (808) 237-5757
Email: sklevansky@kplawhawaii.com
apiper@kplawhawaii.com
About The Minesen Company
The Minesen Company -- http://www.innatschofield.com/-- owns a
transient military lodging facility at Schofield Barracks in
central Oahu known as the Inn at Schofield Barracks. It is based in
Wahiawa, Hawaii.
The Minesen Company filed a petition for Chapter 11 protection
(Bankr. D. Hawaii Case No. 19-00849) on July 4, 2019, with up to
$50 million in assets and up to $10 million in liabilities. Max
Jensen, president of The Minesen Company, signed the petition.
Judge Robert J. Faris oversees the case.
The Debtor tapped Goodsill Anderson Quiin & Stifel as bankruptcy
counsel; Snell & Wilmer, LLP, Keith M. Kiuchi, A Law Corporation
and Crowell & Moring, LLP as special counsels; Joseph M. Salvator
CPA, PC as accountant; and Schlissel & Associates, LLC as tax
advisor.
Dane S. Field, the Chapter 11 trustee appointed in the Debtor's
case, is represented by Klevansky Piper, LLP.
MIRACLE CENTER: Has Deal on Cash Collateral Access Thru Dec 31
--------------------------------------------------------------
The Miracle Center Church of Ventura County, Inc. and the U.S.
Small Business Administration advised the U.S. Bankruptcy Court for
the Central District of California, Northern Division, that they
have reached an agreement regarding the Debtor's use of cash
collateral and now desire to memorialize the terms of this
agreement into an agreed order.
On July 25, 2020, Miracle Center Christian Church, Inc. executed a
U.S. Small Business Administration Note, pursuant to which MCCCI
obtained a $68,000 loan. The terms of the Note require MCCCI to pay
principal and interest payments of $291 every month beginning 12
months from the date of the Note over the 30-year term of the SBA
Loan, with a maturity date of July 25, 2050. The SBA Loan has an
annual rate of interest of 2.75% and may be prepaid at any time
without notice of penalty.
Pursuant to the SBA Loan Authorization and Agreement executed on
July 25, 2020, MCCCI is required to "use all the proceeds of this
Loan solely as working capital to alleviate economic injury caused
by disaster occurring in the month of January 31, 2020 and
continuing thereafter and to pay Uniform Commercial Code lien
filing fees and a third-party UCC handling charge of $100 which
will be deducted from the Loan amount."
The parties agreed that any and all of the Personal Property
Collateral constitutes the cash collateral of the SBA.
The Debtor represents to the SBA that it will make no additional or
unauthorized use of the cash collateral retroactive from the SBA
Loan date until December 31, 2022, or the entry of an Order
Confirming the Debtor's Plan of Reorganization, whichever occurs
earlier.
Retroactive to the Petition Date, the SBA will receive a
replacement lien on all post-petition revenues of the Debtor to the
same extent, priority and validity that its lien attached to the
cash collateral. The scope of the replacement lien is limited to
the amount (if any) that cash collateral diminishes post-petition
as a result of the Debtor's post-petition use of cash collateral.
The replacement lien need not be subject to additional recording.
The SBA is authorized to file a certified copy of the cash
collateral order and any other necessary and related documents to
further perfect its lien.
The Debtor will commence monthly payments of $291 to the SBA on
January 25, 2023, continuing until further order of the Court or
entry of an Order Confirming the Debtor's Plan of Reorganization,
whichever occurs earlier.
The Debtor agrees to maintain insurance on the Personal Property
Collateral and to designate SBA as a loss payee or additional
insured in accordance with the SBA Loan and related loan documents
and agrees to provide proof of insurance within seven (7) days upon
written request of SBA.
* * *
The Court was slated to consider approval of the Stipulation at a
hearing set for October 26 at 2 p.m. A Chapter 11 Status
Conference was also set to be held that day.
On Wednesday, the Court entered an order continuing the Status
Hearing to December 6 at 10:00 a.m.
A copy of the stipulation is available at https://bit.ly/3TZXLfF
from PacerMonitor.com.
About Miracle Center Church of Ventura County, Inc.
Miracle Center Church of Ventura County, Inc. is a tax-exempt
religious organization. The Debtor sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 22-10664)
on August 29, 2022. In the petition signed by Alonzo McCowan,
CEO/president, the Debtor disclosed $3,472,792 in assets and
$3,387,733 in liabilities.
Judge Ronald A. Clifford III oversees the case.
John K. Rounds, Esq., at Rounds & Sutter LLP is the Debtor's
counsel.
MISTER ROBERTS: Wins Cash Collateral Access Thru Nov 14
-------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas,
Houston Division, authorized Mister Roberts Furniture, LLC to use
cash collateral on an interim basis in accordance with the budget
until the final hearing.
The final hearing on the matter is set for November 14, 2022 at 10
a.m.
The Debtor requires the use of cash collateral to pay its necessary
expenses of its business in the ordinary course.
The Court said that IOU Financial, Kalamata Capital Group 9,
Everest Business Funding, and Global Funding Experts will continue
to have the same liens, encumbrances and security interests in the
cash collateral generated or created post filing in the amounts and
priority as existed on the filing date, as existed prior to the
filing date.
A copy of the order is available at https://bit.ly/3TCIu4q from
PacerMonitor.com.
About Mister Roberts Furniture, LLC
Mister Roberts Furniture, LLC sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 22-33098) on
October 18, 2022. In the petition signed by Robert Way, president,
the Debtor disclosed up to $500,000 in both assets and
liabilities.
Judge Christopher Lopez oversees the case.
Reese W. Baker, Esq., at Baker & Associates, is the Debtor's legal
counsel.
MMJC ENGINEERING: Files Subchapter V Case
-----------------------------------------
MMJS Engineering filed for chapter 11 protection in the Southern
District of California. The Debtor elected on its voluntary
petition to proceed under Subchapter V of chapter 11 of the
Bankruptcy Code.
The Debtor has determined that it needs to take advantage of the
benefits of Chapter 11 to reorganize its debt structure.
Mark Anthony Martini is the CEO and 100% of the Debtor.
According to court filings, MMJS Engineering estimates $500,000 to
$1 million in debt to 1 to 49 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
Nov. 22, 2022, at 10:00 AM To access telephonic 341 meeting, call
877-327-1920 and enter passcode 7293433# when prompted.
Proofs of claim are due by Dec. 28, 2022.
About MMJS Engineering
MMJS Engineering is a general engineering contractor in
California.
QVA9 Management Inc. filed a petition for relief under Subchapter V
of Chapter 11 of the Bankruptcy Code (Bankr. S.D. Cal. Case No.
22-02691) on October 19, 2022. In the petition filed by Mark
Anthony Martini, as CEO, the Debtor reported assets and liabilities
between $500,000 and $1 million each.
Barbara R. Gross has been appointed as Subchapter V trustee.
The Debtor is represented by Matthew Resnik of RHM Law LLP.
The Subchapter V trustee can be reached at:
Barbara R. Gross
P.O. Box 16346
San Diego, CA 92176-6346
Tel: 619-782-9233
E-mail: barbara@bgross.law
MONTANA RENEWABLES: Moody's Withdraws 'B3' Corporate Family Rating
------------------------------------------------------------------
Moody's Investors Service has withdrawn all assigned ratings for
Montana Renewables, LLC (MRL), including its B3 Corporate Family
Rating, because the company did not complete its proposed debt
issuance.
The following ratings were withdrawn:
Withdrawals:
Issuer: Montana Renewables, LLC
Probability of Default Rating, Withdrawn, previously rated B3-PD
Corporate Family Rating, Withdrawn, previously rated B3
Senior Secured Bank Credit Facility, Withdrawn, previously rated
B3 (LGD3)
Outlook Actions:
Issuer: Montana Renewables, LLC
Outlook, Changed To Rating Withdrawn From Stable
RATINGS RATIONALE
The ratings were withdrawn because MRL did not issue its proposed
term loan B.
Montana Renewables, LLC was established in 2021 by its parent,
Calumet Specialty Products Partners, L.P., to enter into the
production and marketing of renewable diesel.
MULLEN AUTOMOTIVE: Signs Exchange Agreement With Esousa
-------------------------------------------------------
Mullen Automotive Inc. entered into an exchange agreement with
Esousa Holdings LLC, a New York limited liability company, pursuant
to which Esousa acquired a new secured convertible promissory note
in exchange the Amended and Restated Secured Convertible Note and
Security Agreement, dated June 17, 2022. The Exchange note has a
principal amount of $12,945,914. Consistent with the terms of the
A&R Note, Esousa may elect to convert all or any portion of the
then-outstanding principal balance of the Exchange Note into that
number of shares of common stock, par value $0.001, of the Company
equal to the number obtained by dividing the outstanding principal
balance of the Exchange Note to be so converted at a 5% discount to
the lowest daily volume-weighted average price in the 10 trading
days prior to conversion based on the prevailing market value of
shares of the common stock of the Company as reported on Nasdaq at
close on the date on which a written notice of conversion is
delivered to the Company. The Exchange Note extends the maturity
date of the A&R Note to July 23, 2025.
Pursuant the terms of the Exchange Agreement, Esousa agreed to
cancel and extinguish and not seek to enforce any rights or
interest in the A&R Note, including any rights to receive any
premium, make-whole amount, accrued and unpaid interest or
dividends thereon or any shares of Common Stock. The Exchange
Agreement also contains customary representations, warranties and
covenants by the parties.
Meanwhile, the Company filed a Certificate of Mullen Automotive
Inc. increasing number of Shares of Preferred Stock designated as
Series D Convertible Preferred Stock with the Secretary of State of
the State of Delaware. The Certificate of Designations increased
the number of shares of the Company's preferred stock, par value
$0.001, designated as Series D Convertible Preferred Stock from
87,500,001 shares to 437,500,001 shares.
About Mullen
Mullen Automotive Inc. (fka Net Element Inc.) operates a Southern
California-based electric vehicle company that operates in various
verticals of businesses focused within the automotive industry.
The Company has two electric vehicles under development, one of
which the Company expects to begin delivery of in the second
quarter of 2024. Mullen has several divisions that operate
synergistic businesses, being: CarHub, a digital platform that
leverages artificial intelligence to offer an interactive solution
for buying, selling and owning a car, and Mullen Energy, a division
focused on advancing battery technology and emergency point-of-care
solutions.
Mullen Automotive reported a net loss of $44.24 million for the
year ended Sept. 30, 2021, compared to a net loss of $30.18 million
for the year ended Sept. 30, 2020. As of June 30, 2022, the
Company had $84.26 million in total assets, $65.11 million in total
liabilities, and $19.16 million in total stockholders' equity.
Fort Lauderdale, Florida-based Daszkal Bolton LLP, the Company's
auditor since 2020, issued a "going concern" qualification in its
report dated Dec. 29, 2021, citing that the Company has sustained
net losses, has indebtedness in default, and has liabilities in
excess of assets, which raise substantial doubt about its ability
to continue as a going concern.
NATIONWIDE FREIGHT: Wins Cash Collateral Access Thru Dec 5
----------------------------------------------------------
The U.S. Bankruptcy Court for the District of Illinois, Eastern
Division, authorized Nationwide Freight Systems, Inc. to use cash
collateral on an interim basis during the period from November 1
through December 5, 2022.
In exchange for the Debtor's use of cash collateral, PNC Bank
National Association, Vox Funding, LLC and Forward Financing, LLC
are granted, as adequate protection for their purported secured
interests in the Debtor's property, the following:
1. The Debtor will permit the Secured Creditors to inspect,
upon reasonable notice and within reasonable hours, the debtor's
books and records. By October 14, 2022, the Debtor must also
provide PNC and any other Secured Creditor that requests it, the
following information:
a. Current A/R aging report;
b. Balance sheet for the Debtor; and
c. An analysis of the proposed budget showing the actual
amounts that the debtor expended and received compared to the
amounts on the budget.
2. The Debtor must maintain and pay premiums for insurance to
cover all of its assets from fire, theft and water damage and upon
request provide proof of insurance to any Secured Creditor who asks
for it.
Without limiting or waiving the Secured Creditors' rights to
request additional adequate protection, the Secured Creditors are
granted valid, perfected, enforceable security interests in and to
the Debtor's post-petition assets, including all proceeds and
products which are now or hereafter become property of the
bankruptcy estate to the extent and priority of their alleged
pre-petition liens, if valid, but only to the extent of any
diminution in the value of those assets.
No later than October 14, the Debtor must pay PNC $10,000, plus the
monthly interest accruing on the PNC Note at the non-default
contract rate of interest, as additional adequate protection to PNC
for the use of its cash collateral during the period covered the
order covers. The payment is without prejudice to any party's right
to dispute how PNC should apply the payment and PNC's right to seek
additional adequate protection. PNC must provide the Debtor with a
calculation the monthly interest by November 7.
A further interim hearing on the motion is scheduled for December 5
at 10 a.m.
A copy of the order and the Debtor's 13-week budget through
December 2, 2022, is available at https://bit.ly/3zdZ5n5 from
PacerMonitor.com.
The budget provides for total expenses, on a weekly basis, as
follows:
$115,400 for the week ended September 9, 2022;
$115,400 for the week ended September 16, 2022;
$115,400 for the week ended September 23, 2022;
$115,400 for the week ended September 30, 2022;
$115,800 for the week ended October 7, 2022;
$116,800 for the week ended October 14, 2022;
$117,900 for the week ended October 21, 2022;
$117,900 for the week ended October 28, 2022;
$119,400 for the week ended November 4, 2022;
$119,900 for the week ended November 11, 2022;
$120,100 for the week ended November 18, 2022;
$120,800 for the week ended November 25, 2022; and
$122,200 for the week ended December 2, 2022.
About Nationwide Freight Systems, Inc.
Nationwide Freight Systems, Inc. is an asset-based transportation
and logistics provider located in Elgin, Illinois. It provides
transportation, logistics, and distribution services to the
printing, retail, hospitality and textile industries, and also to
many manufacturing and wholesale companies of various sizes. The
Debtor sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. N.D. Ill. Case No. 22-06364) on June 6, 2022. In the
petition signed by Robert D. Kuehn, president, the Debtor disclosed
up to $1 million in assets and up to $10 million in liabilities.
Judge Benjamin A. Goldgar oversees the case.
David K. Welch, Esq., at Burke, Warren, Mackay and Serritella, PC
is the Debtor's counsel.
NEWAGE INC: Taps Grant Thornton as Tax Service Provider
-------------------------------------------------------
Newage, Inc. and its affiliates seek approval from the U.S.
Bankruptcy Court for the District of Delaware to employ Grant
Thornton, LLP as tax services provider.
The firm's services include:
a. assisting in the preparation of the applicable returns and
forms for the designated taxable years;
b. assisting the Debtors in the initial assessment of how their
tax revenue recognition methods of accounting may be impacted by
Revenue Procedure 2021-34 and final Treasury regulations issued
under Internal Revenue Code section 451(b) and (c), which are
effective for its first taxable year beginning on or after Jan. 1,
2021; and
c. providing tax services as requested by the Debtors.
Grant Thornton will be paid at these rates:
Partner/Principal $620 per hour
Senior Manager/Director $525 per hour
Manager $455 per hour
Senior Associate $375 per hour
Associate $225 per hour
GTSSC Manager $180 per hour
GTSSC Reviewer/Preparer $130 per hour
Administrative $58 per hour
The firm will also be reimbursed for out-of-pocket expenses
incurred.
MK Mortensen, a partner at Grant Thornton, disclosed in a court
filing that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
MK Mortensen
Grant Thornton, LLP
155 N 400 W, Suite 500
Salt Lake City, UT 84103-1141
Tel: (801) 415-1000
Fax: (801) 322-0061
Email: mk.mortensen@us.gt.com
About Newage Inc.
NewAge Inc. (Nasdaq: NBEV) is a Utah-based company that
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. On the
Web: http://www.NewAgeGroup.com/
NewAge and 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 Aug. 30,
2022. At the time of filing, NewAge reported total assets of
$310,902,000 and total liabilities of $149,447,000.
The Debtors tapped Greenberg Traurig, LLP as bankruptcy counsel;
SierraConstellation Partners, LLC as financial advisor; Grant
Thornton, LLP as tax services provider; and Stretto, Inc. as claims
and noticing agent and administrative advisor. Houlihan Lokey
Capital, Inc. conducted the pre-bankruptcy marketing process for
the Debtors.
The U.S. Trustee for Region 3 appointed an official committee of
unsecured creditors in the Debtors' Chapter 11 cases on Sept. 14,
2022. Cole Schotz, P.C. and Dundon Advisers, LLC serve as the
committee's legal counsel and financial advisor, respectively.
PAR PETROLEUM: Billings Transaction No Impact on Moody's B1 Rating
------------------------------------------------------------------
Moody's Investors Service commented that Par Pacific Holdings,
Inc.'s (Par Pacific), the parent company of Par Petroleum, LLC
(Par, B1 stable), acquisition of the Billings Refinery and
associated marketing and logistics assets is credit positive but
does not immediately affect Par's ratings or outlook. The
acquisition benefits Par's credit profile because it increases
scale and diversification and will be funded within existing
liquidity. Par expects to close the acquisition in the second
quarter of 2023. In evaluating the impact of the acquisition,
Moody's will consider the benefits from strategic growth in scale
and diversification and synergies against any incremental leverage
added to fund the acquisition including inventory, still relatively
modest size as well as Par's ability to sustain low leverage and
generate positive free cash flow, among other factors. The refining
business is highly cyclical, but the company benefits from its
integrated asset base across refining, logistics and retail which
provides for diversification across the value chain.
Par Pacific is acquiring the refinery in Billings, Montana and
associated marketing and logistics assets from Exxon Mobil
Corporation (Aa2 stable) for a purchase price of $310 million, plus
hydrocarbon and other inventory to be valued at closing. As of
September 30, 2022, Par Pacific had about $495 million of
liquidity. The company expects to finance the inventory with a new
working capital facility.
The addition of the refinery will increase Par Pacific's active
throughput capacity to about 218,000 barrels per day (bpd) from
about 154,000 bpd. The acquisition increases Par Pacific's existing
footprint in the western United States where it has a refinery in
Washington with capacity of about 42,000 bpd and a refinery is
Wyoming with capacity of about 18,000 barrels per day. Par Pacific
also has a strong niche market position in Hawaii where it has
active capacity of about 94,000 bpd.
Par Pacific, headquartered in Houston, Texas, is a publicly traded
energy company with refining, retail and logistics operations
across several states including Hawaii, Washington and Wyoming.
PHASEBIO PHARMACEUTICALS: Seeks Cash Access, $15MM DIP Loan
-----------------------------------------------------------
PhaseBio Pharmaceuticals, Inc. asks the U.S. Bankruptcy Court for
the District of Delaware for authority to use cash collateral and
obtain senior secured postpetition financing from JMB Capital
Partners Lending, LLC on a secured superpriority basis.
JMB's DIP loan consists of a new money term loan facility in an
aggregate principal amount of up to $15 million consisting of:
a. A superpriority senior secured multiple draw term loan
credit facility in the principal amount of $15 million, less the
amount of a Roll-Up Loan, of which (x) upon entry of the Interim
Order, $12 million less the amount of the Roll-Up Loan will be made
available to the Debtor and may be drawn in a single draw, and (y)
subject to entry of the proposed Final Order, any amounts above the
Interim Advance shall be made available to the Debtor in the amount
set forth in the DIP Credit Agreement;
b. A superpriority term loan facility (Roll-Up Loan) in the
outstanding principal amount of not less than approximately $9.1
million.
The DIP Loans will bear and interest on the daily balance thereof
at a rate equal to 14.00% per annum, accruing monthly, payable in
arrears.
The DIP Credit Agreement is effective through the earliest of:
(i) June 30, 2023,
(ii) the substantial consummation of a plan of reorganization
filed in the Chapter 11 Case that is confirmed pursuant to an order
entered by the Bankruptcy Court,
(iii) the consummation of a sale or other disposition of all or
substantially all of the assets of the Borrower under Section 363
of the Bankruptcy Code,
(iv) entry of an order converting the Chapter 11 Case to a case
under chapter 7 of the Bankruptcy Code or dismissing the Chapter 11
Case; and
(v) the acceleration of the outstanding Obligations under the
DIP Credit Agreement and termination of the DIP Loan Commitment as
a result of the occurrence and continuation of an Event of Default.
The Debtor is seeking immediate approval of a debtor-in-possession
financing facility to fund the Debtor's operating expenses and the
consummation of a sale of substantially all of its assets.
Prior to the Petition Date, JMB, as (i) assignee of Silicon Valley
Bank, in its capacity as administrative agent and collateral agent,
(ii) assignee of SVB as a lender, and (iii) assignee of SVB
Innovation Credit Fund VIII, L.P., Delaware limited partnership
(f/k/a WestRiver Innovation Lending Fund VIII, L.P.) as a lender
made loan advances and provided other financial accommodations to
the Debtor. As of the Petition Date, the Debtor was indebted to the
Prepetition First Lien Lender in an aggregate outstanding amount of
not less than approximately $9.1 million.
The Debtor entered into the Co-Development Agreement with SFJ
Pharmaceuticals X, Ltd.to obtain the investment funds needed to
support the global development of bentracimab, the Debtor's lead
drug candidate. Pursuant to the CDA, SFJ agreed to provide up to a
$120 million investment, comprised of (a) $90 million in initial
funding, and (b) up to $30 million in additional funding. The
Debtor was eligible and elected to receive the full $30 million in
additional funding on December 15, 2021, having met certain
clinical development milestones, and SFJ has invested approximately
$11.3 million of that amount to date. Accordingly, as of the
Petition Date, SFJ has invested a total of approximately $101.3
million with the Debtor pursuant to the CDA. The CDA provides that
SFJ will receive highly lucrative, return-on-investment payments
only if the Debtor receives future regulatory approvals.
As of the Petition Date, the Debtor also has approximately $36
million in outstanding unsecured obligations.
As adequate protection for the Debtor's use of cash collateral, SFJ
will be granted continuing valid, binding, enforceable and
perfected postpetition replacement liens pursuant to Sections 361,
363(e), and 364(d)(l) of the Bankruptcy Code.
SFJ will also be granted administrative superpriority expense
claims in the Chapter 11 Case junior and subordinate only to the
Carve Out and the DIP Superpriority Claims, pursuant to Section
507(b) otherwise with priority over any and all other
administrative expenses and unsecured claims against the Debtor or
its estate.
The "Carve Out" means the sum of (i) all fees required to be paid
to the Clerk of the Court and to the United States Trustee under 28
U.S.C. section 1930(a), together with any interest thereon pursuant
to 31 U.S.C. section 3717; (ii) Court-allowed fees and expenses of
a trustee appointed under section 726(b) of the Bankruptcy Code in
an amount not to exceed $75,000; (iii) to the extent allowed at any
time, whether by interim order, procedural order, or otherwise, all
unpaid fees and expenses incurred by persons or firms retained by
the Debtor; and (iv) subject to the Approved Budget, Allowed
Professional Fees of Professional Persons in an aggregate amount
not to exceed $500,000 incurred after the first business day
following delivery by the DIP Lender of the Carve Out Trigger
Notice.
A copy of the motion is available at https://bit.ly/3Flhlyy from
PacerMonitor.com.
About PhaseBio Pharmaceuticals
PhaseBio Pharmaceuticals, Inc. -- https://www.phasebio.com/ -- is
focused on the development and commercialization of novel therapies
to treat orphan diseases, with an initial focus on cardiopulmonary
indications.
PhaseBio Pharmaceuticals filed a petition for relief under Chapter
11 of the Bankruptcy Code (Bankr. D. Del. Case No. 22-10995) on
Oct. 24, 2022. In the petition filed by Jonathan Mow, as chief
executive officer, the Debtor reported $17,970,000 in assets and
$21,320,000 in debt as of Aug. 31, 2022.
The Debtor tapped COOLEY LLP as lead bankruptcy counsel; RICHARDS,
LAYTON & FINGER, P.A., as Delaware bankruptcy counsel;
SIERRACONSTELLATION PARTNERS LLC as financial advisor; and MILLER
BUCKFIRE & CO. as investment banker. OMNI AGENT SOLUTIONS is the
claims agent.
JMB Capital Partners Lending, LLC, as DIP lender, is represented by
Robert M. Hirsh, Esq. and Jordana L. Renert, Esq. at Lowenstein
Sandler LLP.
PHILUX GLOBAL: Terminates Business Cooperation Deal With Vinafilms
------------------------------------------------------------------
Philux Global Group Inc. (f/k/a PHI Group, Inc.), Vinafilms JSC
(Cong ty Co phan Mang Bao BI Tan Vinh Nam Phat), a Vietnamese joint
stock company, with principal business address at Lot G9, Road No.
9, Tan Do Industrial Zone, Duc Hoa Ha Village, Duc Hoa District,
Long An Province, Vietnam, and Ms. Do Thi Nghieu, the majority
shareholder of Vinafilms JSC, signed an agreement to terminate the
Business Cooperation Agreement that was previously entered into by
the parties on Aug. 6, 2018.
The termination of the referenced Business Cooperation Agreement,
retroactively effective Aug. 6, 2018, is due to the resultant
impact of the Covid-19 pandemic and particular microeconomic
conditions which make it infeasible for the Parties to continue the
originally-planned Business Cooperation Agreement.
About PHI Group
Headquartered in Irvine, California, PHI Group, Inc.
(www.phiglobal.com) primarily focuses on advancing PHILUX Global
Funds, a group of Luxembourg bank funds organized as "Reserved
Alternative Investment Fund", and building the Asia Diamond
Exchange in Vietnam. The Company also engages in mergers and
acquisitions and invests in select industries and special
situations that may substantially enhance shareholder value.
PHI Group reported a net loss of $6.55 million for the year ended
June 30, 2021, a net loss of $1.32 million for the year ended June
30, 2020, and a net loss of $2.93 million for the year ended June
30, 2019. As of March 31, 2022, the Company had $5.29 million in
total assets, $6.24 million in total liabilities, and a total
stockholders' deficit of $946,420.
Bangalore, India-based M.S. Madhava Rao, the Company's auditor,
issued a "going concern" qualification in its report dated Nov. 7,
2021, citing that the Company has an accumulated deficit of
$50,563,530 and had a negative cash flow from operations amounting
to $79,446 for the year ended June 30, 2021. These factors raise
substantial doubt about the Company's ability to continue as a
going concern.
PHUNWARE INC: CEO Alan Knitowski Resigns
----------------------------------------
Alan Knitowski submitted notice of resignation to Phunware, Inc.
effective as of the expiration of his employment agreement.
In an 8-K filing on July 27, 2022, Phunware provided a "Notice of
Non-Renewal" of Employment Agreement to its Chief Executive Officer
and President, Alan Knitowski. By its terms, Mr. Knitowski's
Employment Agreement with the Company will terminate on Dec. 26,
2022, at which time Mr. Knitowski would become an "employee at
will" of the Company until such further action is taken by the
Company or by Mr. Knitowski to terminate his employment.
The Board of Directors of the Company has formed a Leadership
Transition Committee and has engaged a consulting firm to commence
a search for new leadership candidates. That process is ongoing
and is expected to be completed by the end of December 2022.
About Phunware
Headquartered in Austin, Texas, Phunware, Inc. --
http://www.phunware.com-- offers a fully integrated software
platform that equips companies with the products, solutions and
services necessary to engage, manage and monetize their mobile
application portfolios globally at scale.
Phunware reported a net loss of $53.52 million for the year ended
Dec. 31, 2021, a net loss of $22.20 million for the year ended Dec.
31, 2020, a net loss of $12.87 million for the year ended Dec. 31,
2019, and a net loss of $9.80 million for the year ended Dec. 31,
2018. As of June 30, 2022, the Company had $61.24 million in total
assets, $25.54 million in total liabilities, and $35.69 million in
total stockholders' equity.
PLATINUM GROUP: Waterberg Establishes Pre-Construction Work Program
-------------------------------------------------------------------
Platinum Group Metals Ltd. reports that Waterberg JV Resources
(Pty) Ltd. has approved in principle a Rand 380 million (approx. US
$21.0 million) pre-construction work program for the Waterberg
Project, focused on early infrastructure, de-risking and project
optimization.
An initial budget for the first R 45 million (approx. US $2.5
million) of the Work Program, to be spent by March 31, 2023, has
been unanimously approved by the board of directors of Waterberg JV
Co., which is owned by the Company, Japan Oil, Gas and Metals
National Corporation, Hanwa Co. Ltd., Impala Platinum Holdings
Ltd., and Mnombo Wethu Consultants (Pty) Ltd.
"The Waterberg JV co-owners are pleased to collaborate on and fund
this important and substantial Work Program, which will advance the
Waterberg Project," said Platinum Group President and CEO Frank
Hallam. "Waterberg JV Co. has laid out an early infrastructure
plan intended to significantly de-risk the future construction of
the project. While the Work Program is being executed, we plan to
continue seeking a third-party concentrate offtake agreement for
Waterberg JV Co. and, as a possible alternative, PTM plans to
assess the potential establishment of a new smelter and base metal
refinery business, jointly with third party investors, capable of
processing Waterberg concentrate."
The Work Program will focus on project infrastructure including
initial road access, water supply, essential site facilities, a
first phase accommodation lodge, a site construction power supply
from state utility Eskom and advancement of the Waterberg Social &
Labour Plan. An update to the 2019 Waterberg Definitive
Feasibility Study ("DFS Update") is also planned, including a
review of cut-off grades, mining methods, infrastructure plans,
scheduling, concentrate offtake, dry stack tailings, costing and
other potential revisions to the project's financial model.
As a precursor to the DFS Update, an infill drilling program has
been approved targeting near surface, modelled Inferred Mineral
Resource blocks that have good potential for conversion to higher
confidence levels, thereby allowing them to be added to early mine
plans, potentially reducing early capital expenditure and the
period to first mining. The infill drill program, budgeted at R
23.0 million (approx. US $1.25 million), is scheduled to commence
shortly and is planned to consist of 16 T Zone NQ boreholes and 16
F Zone NQ boreholes. Mineralized material recovered from the drill
program will be assayed and the remaining material will be
processed to determine dry-stack tailings characteristics and
provide additional concentrate metallurgical data. If dry stack
tailings methods are implemented in the DFS Update, it is expected
that mine water consumption will be reduced by 40% to 50%.
The Initial Budget for the Work Program will be funded pro rata by
the joint venture partners and was coordinated to match fiscal year
and budgetary periods for JOGMEC and Hanwa. Subsequent
expenditures in accordance with the Work Program are subject to
expected approvals for sequential time periods ending on Aug. 31,
2024.
The Company said the announcement is another key step on the
journey to leveraging the potential of the Waterberg deposit and
its prospective positive economic, social, and community impacts.
A future construction decision for the Waterberg Project would
benefit local stakeholders by offering skilled job opportunities,
improved roads, better access to water services, as well as
training and education opportunities.
Qualified Person
Qualified Person Rob van Egmond, P.Geo., a consultant geologist to
the Company and a former employee, is an independent qualified
person as defined in National Instrument 43-101 Standards of
Disclosure for Mineral Projects ("NI 43-101"). Mr. van Egmond has
reviewed, validated and approved the scientific and technical
information contained in this news release and has previously
visited the Waterberg Project site.
About Platinum Group Metals
Headquartered in British Columbia, Canada, Platinum Group Metals
Ltd. -- http://www.platinumgroupmetals.net-- is a platinum and
palladium focused exploration, development and operating company
conducting work primarily on mineral properties it has staked or
acquired by way of option agreements or applications in the
Republic of South Africa and in Canada.
Platinum Group reported a loss of $13.06 million for the year ended
Aug. 31, 2021, a loss of $7.13 million for the year ended Aug. 31,
2020, a loss of $16.78 million for the year ended Aug. 31, 2019,
and a loss of $41.02 million for the year ended Aug. 31, 2018.
As of May 31, 2022, the Company had $58.25 million in total assets,
$1.90 million in total liabilities, and $56.34 million in total
shareholders' equity.
RE-BUILD SEVILLE: Seeks to Hire McRaney & McRaney as Counsel
------------------------------------------------------------
Re-Build Seville, LLC seeks approval from the U.S. Bankruptcy Court
for the Southern District of Mississippi to employ McRaney &
McRaney as counsel to handle its Chapter 11 bankruptcy case.
McRaney & McRaney will be paid at the rate of $300 per hour for
partners, $75 per hour for paralegals, and $25 per hour for law
clerks.
In addition, the firm will be reimbursed for out-of-pocket expenses
incurred.
G. Adam Sanford, Esq., a partner at McRaney & McRaney, 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:
G. Adam Sanford, Esq.
Allison W. Killebrew, Esq.
McRaney & McRaney
P.O. Drawer 1397
Clinton, MS 39060
Tel: (601) 924-5961
Fax: (601) 924-1516
Email: g.adamsanford@gmail.com
allisonwkillebrew@gmail.com
About Re-Build Seville
Re-Build Seville, LLC, a company in Jackson, Miss., sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
S.D. Miss. Case No. 22-01976) on Sept. 28, 2022. In the petition
filed by its manager, J. Stephen Tracy, the Debtor reported between
$1 million and $10 million in both assets and liabilities.
Judge Jamie A. Wilson oversees the case.
The Debtor is represented by George Adam Sanford, Esq., at McRaney
& McRaney.
RELMADA THERAPEUTICS: Deep Track, 2 Others Report 8.25% Stake
-------------------------------------------------------------
Deep Track Capital, LP, Deep Track Biotechnology Master Fund, Ltd.,
and David Kroin disclosed in a Schedule 13G filed with the
Securities and Exchange Commission that as of Oct. 13, 2022, they
beneficially own 2,481,000 shares of common stock of Relmada
Therapeutics, Inc., representing 8.25 percent of the shares
outstanding. A full-text copy of the regulatory filing is
available for free at:
https://www.sec.gov/Archives/edgar/data/1553643/000117266122002225/deeptrack-rlmd101322.htm
About Relmada Therapeutics
Relmada Therapeutics Inc. is a late-stage pharmaceutical company
addressing diseases of the central nervous system (CNS), with a
focus on major depressive disorder (MDD).
Relmada reported a net loss of $125.75 million for the year ended
Dec. 31, 2021, a net loss of $59.45 million for the year ended Dec.
31, 2020, and a net loss of $15 million for the year ended Dec. 31,
2019. As of Dec. 31, 2021, Relmada had $223.32 million in total
assets, $15.06 million in total liabilities, and $208.26 million in
total stockholders' equity.
RUDRA INVESTMENTS: Unsecureds to Recover 50% in Sale Plan
---------------------------------------------------------
Rudra Investments, LLC, submitted a Combined Plan of Reorganization
and Disclosure Statement dated October 14, 2022.
Pursuant to an agreement between Debtor and its primary secured
Creditors, CPIF California, LLC and HDDA, Inc., the Debtor will
market its hotel property (the "Hotel") for sale. While the Hotel
is being marketed, Debtor shall make monthly payments. The Debtor
will pay the secured creditors agreed amounts from the sale of the
Hotel. If Debtor is unable to pay the agreed amounts prior to an
agreed-upon period, the secured creditors shall have the right to
proceed to foreclosure without obstruction from the Debtor.
Under the Plan, Class 2 General Unsecured Claims total $690,141.
Creditors will receive up to 50% of their allowed claim from the
sale of the Hotel to the extent the sale proceeds are sufficient to
pay off the secured and priority debts that are senior to the
general unsecured creditor pool. Creditors in this class may not
take any collection action against Debtor so long as Debtor is not
in material default under the Plan. This class is impaired and is
entitled to vote on confirmation of the Plan.
A copy of the Combined Plan of Reorganization and Disclosure
Statement dated Oct. 14, 2022, is available at
https://bit.ly/3CHaMU3 from PacerMonitor.com.
About Rudra Investments
Rudra Investments, LLC, owns and operates a 98-room hotel in Santa
Rosa, Calif. The hotel operates under a license agreement with
Holiday Inn Express.
Rudra Investments sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Cal. Case No. 22-30275) on June 1,
2022, with up to $50 million in both assets and liabilities.
Hitesh Patel, manager of Rudra Investments, signed the petition.
Judge Dennis Montali oversees the case.
Stephen D. Finestone, Esq., at Finestone Hayes, LLP, is the
Debtor's counsel.
SADDLE BROOK FARM: Taps Michael D. Pinsky P.C. as Counsel
---------------------------------------------------------
Saddle Brook Farm Animal Rescue, Inc. seeks approval from the U.S.
Bankruptcy Court for the Southern District of New York to employ
the Law Office of Michael D. Pinsky, P.C. as its counsel.
The firm's services include:
(a) advising the Debtor regarding its powers and duties in the
continued operation of its business and the appropriate management
of estate property;
(b) preparing records and reports required by the Bankruptcy
Rules, the Local Bankruptcy Rules of the Southern District of New
York, and the operating guidelines of the Office of the U.S.
Trustee;
(c) assisting in the determination of the value of property of
the estate, the treatment of secured debt, the resolution of
claims, the defense of motions for modification of the automatic
stay, the provision of adequate protection, the disposition of
property, and the treatment of claims in connection with a Chapter
11 plan of reorganization;
(d) representing the Debtor in negotiations and preparing legal
papers;
(f) assisting in the formulation and preparation of a disclosure
statement and plan of reorganization;
(g) representing the estate's interest in adversary proceedings;
and
(h) all other matters necessary to restructure the company's
debt and reorganize its financial affairs.
The firm will be paid at these rates:
Attorneys $475 per hour
Paralegals $125 per hour
In addition, the firm will be reimbursed for out-of-pocket expenses
incurred.
Michael Pinsky, Esq., a partner at the Law Office of Michael D.
Pinsky, 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:
Michael D. Pinsky, Esq.
Law Office of Michael D. Pinsky, P.C.
372 Fullerton Ave., # 11
Newburgh, NY 12550
Tel: (845) 245-6001
Fax: (845) 684-0547
Email: pinsky.bkr.law@gmail.com
About Saddle Brook Farm Animal Rescue
Saddle Brook Farm Animal Rescue, Inc. filed a Chapter 11 bankruptcy
petition (Bankr. S.D.N.Y. Case No. 22-35644) on Oct. 12, 2022,
with up to $50,000 in assets and up to $50,000 in liabilities.
Judge Cecelia G. Morris oversees the case.
The Debtor is represented by the Law Office of Michael D. Pinsky,
P.C.
SHILO INN BEND: Wins Cash Collateral Access Thru Feb 2023
---------------------------------------------------------
The U.S. Bankruptcy Court for the Western District of Washington at
Tacoma authorized Shilo Inn, Bend, LLC and Shilo Inn, Warrenton,
LLC to use cash collateral on an interim limited basis until the
earliest to occur of (a) the date that the current order ceases to
be in effect, or (b) the occurrence of a Termination Event.
A Termination Event consists of any of the following:
a. February 21, 2023 (the Outside Date);
b. The Debtors' failure to deposit on a daily basis all cash
receipts and collections in their DIP Account(s);
c. Entry of an order, without the consent of the Secured
Creditors, reversing, staying or modifying the current order in any
material respect, or terminating the Debtors' use of cash
collateral pursuant to this order;
d. Filing by the Debtors of an application for the approval of
any superpriority claim which is pari passu with or senior to the
Adequate Protection Obligations of Adequate Protection Liens, or
the granting of any such pari passu or senior superpriority claim,
except any such superpriority claim or lien arising thereunder;
e. Entry of an order granting relief from the automatic stay to
permit foreclosure, possession, set-off or any similar remedy with
respect to any collateral necessary to the conduct of the Debtors'
business;
f. Payment of a prepetition claim, except as permitted by a
Court order or the budget;
g. Dismissal of the Debtors' Chapter 11 case, or its conversion
to a case under Chapter 7, or the appointment of a Chapter 11
trustee or an examiner with enlarged powers relating to the
business operations; and
h. The Debtors' failure to maintain, with financially sound
insurance companies, insurance against risks customarily maintained
by companies in businesses similar to the Debtors' business.
RSS WFCM2015NXS4-OR SIB, LLC and RSS WFCM2016NXS5-OR SIW, LLC
assert an interest in the Debtors' cash collateral.
The Secured Creditors, either directly or through a predecessor,
extended certain prepetition credit facilities to Shilo Bend and
Shilo Warrenton, respectively.
The Credit Facilities are evidenced, in part, by certain notes,
security instruments, assignments of leases, UCC-1 statements, and
any and all other pre-petition documents, agreements, and
instruments evidencing, securing, or in any manner relating to the
loans.
Although the Debtor contends that Secured Creditor is adequately
protected by, among other things, substantial equity cushion, the
Secured Creditor disputes such contention and contends that the
Debtor cannot offer adequate protection for its use of cash
collateral. The Secured Creditor has, however, consented to the
Debtor's use of cash collateral, subject to and expressly
conditioned upon the granting of protections as provided for in
the Order.
As a component of adequate protection, the Debtors will make
monthly payments to the Secured Creditors in an amount equal to
monthly interest only payments at the contract (non-default) rate
on the principal amount of the Loan, in the amount of $43,425 per
month for Shilo Bend and the amount of $22,562 per month for Shilo
Warrenton, commencing on or about April 15, 2022, and continuing
monthly thereafter on the 15th of each month through January 15,
2023. The Secured Creditors will apply the Monthly Payments to its
secured claim.
In addition to the security interests preserved by section 552(b)
of the Bankruptcy Code, the Debtor grants, in favor of the Secured
Creditor, a first priority post-petition security interest and lien
in, to and against all of the Debtor's assets, to the same
priority, validity and extent that the Secured Creditor held a
properly perfected pre-petition security interest in such assets.
The liens and security interests granted are deemed perfected
without the necessity for filing or execution of documents which
might otherwise be required under non-bankruptcy law for the
perfection of said security interests.
A fourth interim hearing on the matter is set for February 8 at 10
a.m.
A copy of the order and the Debtors' budgets is available at
https://bit.ly/3SvZNmp from PacerMonitor.com.
Shilo Inn Bend projects $182,060 in gross profit and $181,341 in
total expenses for November 2022.
Shilo Inn Nampa Suites projects $110,260 in gross profit and
$81,483 in total expenses for the same month.
About Shilo Inn, Bend, and Shilo Inn, Warrenton
Shilo Inn, an independently owned and operated hospitality company
with locations in seven western states and Texas, operate Shilo
Inn, Bend, LLC and Shilo Inn, Warrenton, LLC in Oregon.
On August 13, 2021, the companies contemporaneously filed voluntary
Chapter 11 petitions with the U.S. Bankruptcy Court for the Western
District of Washington. The cases are jointly administered under
Shilo Inn, Bend, LLC's case (Bankr. W.D. Lead Case No. 21-41340).
Judge Mary Jo Heston presides over the cases.
On the Petition date, Shilo Inn, Bend estimated $10 million to $50
million in both assets and liabilities, while Shilo Inn, Warrenton
estimated $1 million to $10 million in both assets and liabilities.
The petitions were signed by Mark Hemstreet as secretary of Shilo
Bend Corp., the Debtors' manager.
SHILO INN IDAHO FALLS: Wins Cash Collateral Access Thru Feb 2023
----------------------------------------------------------------
Judge Brian D. Lynch of the U.S. Bankruptcy Court for the Western
District of Washington authorized Shilo Inn, Idaho Falls, LLC to
use cash collateral, pursuant to the budget, to pay for operating
expenses and costs of administration it incurred for the interim
period through the earliest to occur of (a) the date that the
current order ceases to be in effect, or (b) the occurrence of a
Termination Event.
A Termination Event consists of any of the following:
a. February 21, 2023 (the Outside Date);
b. The Debtor's failure to deposit on a daily basis all cash
receipts and collections in its DIP Account(s);
c. Entry of an order, without the consent of the Secured
Creditor, reversing, staying or modifying the current order in any
material respect, or terminating the Debtor's use of cash
collateral pursuant to this order;
d. Filing by the Debtor of an application for the approval of
any superpriority claim which is pari passu with or senior to the
Adequate Protection Obligations of Adequate Protection Liens, or
the granting of any such pari passu or senior superpriority claim,
except any such superpriority claim or lien arising thereunder;
e. Entry of an order granting relief from the automatic stay to
permit foreclosure, possession, set-off or any similar remedy with
respect to any collateral necessary to the conduct of the Debtor's
business;
f. Payment of a prepetition claim, except as permitted by a
Court order or the budget;
g. Dismissal of the Debtor's Chapter 11 case, or its conversion
to a case under Chapter 7, or the appointment of a Chapter 11
trustee or an examiner with enlarged powers relating to the
business operations; and
h. The Debtor's failure to maintain, with financially sound
insurance companies, insurance against risks customarily maintained
by companies in businesses similar to the Debtor's business.
RSS CGCMT 2017P7-ID SIIF, LLC -- successor in interest to Natixis
Real Estate Capital LLC -- asserts an interest in the cash
collateral on account of a note for $5.3 million in original
principal amount dated November 2, 2015; a related Loan Agreement;
and Deed of Trust Assignment of Leases and Rents, Security
Agreement, all of which the Debtor executed in favor of Natixis who
assigned its rights in the Loan Documents to the Secured Creditor.
Although the Debtor contends that Secured Creditor is adequately
protected by, among other things, substantial equity cushion, the
Secured Creditor disputes such contention and contends that the
Debtor cannot offer adequate protection for its use of cash
collateral. The Secured Creditor has, however, consented to the
Debtor's use of cash collateral, subject to and expressly
conditioned upon the granting of protections as provided for in
the Order.
As a component of adequate protection, the Debtor will make monthly
payments to the Secured Creditor in an amount equal to monthly
interest only payments at the contract (non-default) rate on the
principal amount of the Loan, in the amount of $26,837 per month,
commencing on or about April 15, 2022 and continuing monthly
thereafter on the 15th of each month through January 15, 2023.
The Secured Creditor will apply the Monthly Payments to its secured
claim. The Debtor will also grant the Secured Creditor a first
priority post-petition security interest and lien against all of
the Debtor's assets, to the same priority, validity and extent that
the Secured Creditor held a properly perfected pre-petition
security interest in such assets, except for claims or recoveries
by or on behalf of the Debtor.
The liens and security interests granted are deemed perfected
without the necessity for filing or execution of documents which
might otherwise be required under non-bankruptcy law for the
perfection of said security interests.
A further hearing on the matter is set for February 8, 2023 at 10
a.m.
A copy of the order and the Debtor's budget is available for free
at https://bit.ly/3VZCjsK from PacerMonitor.com.
The budget provides for total expenses, on a monthly basis, as
follows:
$84,556 for November 2022;
$258,131 for December 2022;
$122,976 for January 2023; and
$86,056 for February 2023.
About Shilo Inn, Idaho Falls, LLC
Shilo Inn, Idaho Falls, LLC filed a Chapter 11 petition (Bankr.
W.D. Wash. Case No. 20-42489) on November 2, 2020. At the time of
filing, Idaho Falls disclosed up to $50 million in assets and up to
$10 million in liabilities.
Judge Brian D. Lynch oversees the case. Levene, Neale, Bender, Yoo
& Brill L.L.P. and Stoel Rives LLP serve as counsel to Idaho
Falls.
Idaho Falls' case is not jointly administered with those of Shilo
Inn, Ocean Shores, LLC, and Shilo Inn, Nampa Suites, LLC, both of
which sought Chapter 11 protection (Bankr. W.D. Wash. Lead Case No.
20-42348) on October 15, 2020. Ocean Shores and Nampa Suites'
cases are jointly administered.
Lane Powell PC represents RSS CGCMT 2017P7-ID SIIF, LLC, the
secured creditor.
SHILO INN OCEAN SHORES: Wins Cash Collateral Access Thru Feb 2023
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the Western District of Washington at
Tacoma authorized Shilo Inn, Ocean Shores, LLC and Shilo Inn, Nampa
Suites, LLC to use cash collateral on an interim limited basis for
the period from March 24, 2022, until the earliest to occur of (a)
the date that the current order ceases to be in effect, or (b) the
occurrence of a Termination Event.
A Termination Event consists of any of the following:
a. February 21, 2023 (the Outside Date);
b. The Debtors' failure to deposit on a daily basis all cash
receipts and collections in its DIP Account(s);
c. Entry of an order, without the consent of the secured
creditor, reversing, staying or modifying the current order in any
material respect, or terminating the Debtors' use of cash
collateral pursuant to this order;
d. Filing by the Debtors of an application for the approval of
any superpriority claim which is pari passu with or senior to the
Adequate Protection Obligations of Adequate Protection Liens, or
the granting of any such pari passu or senior superpriority claim,
except any such superpriority claim or lien arising thereunder;
e. Entry of an order granting relief from the automatic stay to
permit foreclosure, possession, set-off or any similar remedy with
respect to any collateral necessary to the conduct of the Debtors'
business;
f. Payment of a prepetition claim, except as permitted by a
Court order or the budget;
g. Dismissal of the Debtors' Chapter 11 case, or its conversion
to a case under Chapter 7, or the appointment of a Chapter 11
trustee or an examiner with enlarged powers relating to the
business operations; and
h. The Debtors' failure to maintain, with financially sound
insurance companies, insurance against risks customarily maintained
by companies in businesses similar to the Debtors' business.
RSS WFCM2016NXSS-WA SIOSN, LLC's predecessor-in-interest extended
certain pre-petition credit facilities to Ocean Shores and Nampa
Suites. These credit facilities include a note, in the original
principal amount of $9.9 million dated November 2, 2015, executed
by the Borrower in favor of Natixis Real Estate Capital LLC, a
Delaware limited liability company.
The Secured Creditor succeeded by assignment to all of the
interests of the Original Lender in the Loan Documents; and as a
result, the Secured Creditor is the current holder of the Note and
the Loan Documents.
Although the Debtor contends that Secured Creditor is adequately
protected by, among other things, substantial equity cushion, the
Secured Creditor disputes such contention and contends that the
Debtor cannot offer adequate protection for its use of cash
collateral. The Secured Creditor has, however, consented to the
Debtor's use of cash collateral, subject to and expressly
conditioned upon the granting of protections as provided for in the
current Order.
As a component of adequate protection, the Debtors will each make
monthly payments to the Secured Creditor in an amount equal to
monthly interest only payments at the contract (non-default) rate
on the principal amount of the Loan, in the amount of $29,900 per
month for Ocean Shores and $16,100 for Nampa Suites, commencing on
or about April 15, 2022, and continuing monthly thereafter on the
15th of each month through January 15, 2023. The Secured Creditor
will apply the Monthly Payments to its secured claim in accordance
with the applicable Loan Documents.
In addition to the security interests preserved by section 552(b)
of the Bankruptcy Code, the Debtor grants, in favor of the Secured
Creditor, a first priority post-petition security interest and lien
in, to and against all of the Debtor's assets, to the same
priority, validity and extent that the Secured Creditor held a
properly perfected pre-petition security interest in such assets.
The liens and security interests granted are deemed perfected
without the necessity for filing or execution of documents which
might otherwise be required under non-bankruptcy law for the
perfection of said security interests.
A further interim hearing on the matter is scheduled for February
8, 2023, at 10 a.m.
A copy of the order and the Debtors' budgets is available for free
at https://bit.ly/3FeNUyc from PacerMonitor.com.
Shilo Inn Ocean Shores projects $107,050 in gross profit and
$207,045 in total expenses for November 2022.
Shilo Inn Nampa Suites projects $109,950 in gross profit and
$60,198 in total expenses for the same month.
About Shilo Inn
Hospitality companies Shilo Inn, Ocean Shores, LLC and Shilo Inn,
Nampa Suites, LLC sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. W.D. Wash. Lead Case No. 20-42348) on Oct.
15, 2020.
At the time of filing, Shilo Inn, Ocean Shores disclosed assets of
between $10 million and $50 million and liabilities of the same
range. Shilo Inn, Nampa Suites disclosed $1 million to $10 million
in both assets and liabilities.
Judge Brian D. Lynch oversees the cases.
The Debtors tapped Levene, Neale, Bender, Yoo & Brill L.L.P. as
their bankruptcy counsel and Stoel Rives LLP as their local
counsel.
SILVERSIDE SENIOR LIVING: Unsecureds Projected to Get 0% in Plan
----------------------------------------------------------------
Silverside Senior Living, LLC, and Graceway South Haven, LLC,
submitted a Second Amended Plan of Liquidation.
Prior to the Petition Date, Graceway operated a skilled nursing
facility located in South Haven, Michigan. On the Petition Date,
Graceway maintained a Certificate of Need ("CON") issued by the
State of Michigan, Department of Health and Human Services for a
93-bed facility. Silverside is Graceway's sole member.
The Debtors marketed the business prepetition but due in part to
Graceway's unpaid Michigan bed tax and significant secured debt, no
purchaser was willing to extend a firm offer for Graceway's assets.
In May 2021, with the assistance of the Department of Licensing
and Regulatory Affairs ("LARA"), Graceway moved all of its
residents to alternative facilities.
The Debtors did not conduct any postpetition operations. However,
the Debtors, along with the postpetition billing company, have
continued to pursue collection of the Graceway accounts receivable.
In addition, Debtors have pursued and collected preference
payments for the benefit of their creditors.
The general unsecured claims against the Debtors are comprised of
the Debtors' trade claims due to vendors, potential undersecured
claims of the secured creditors, and the non-priority unsecured
claims of the various taxing authorities. Many of the claims arose
prior to the pandemic and unfortunately remained unpaid when the
Debtors were unable to recover after the shutdown and were
unsuccessful in their efforts to sell Graceway's business as a
going concern.
The Plan proposes to pay the Debtors' creditors from the funds
collected on Graceway's accounts receivable, the recoveries from
the avoidance actions, and the proceeds of the claims under the
Employee Retention Credit ("ERC").
Under the Plan, Class V shall consist of the allowed general
unsecured claims of creditors, other than the claims of the
Debtors' insiders, to the extent such exist, including the Debtors'
trade creditors, the deficiency claims of the Debtors' secured
creditors and any penalty and interest on penalties due to the
various taxing authorities. On the Petition Date, the Debtors'
combined non-insider general unsecured trade debt totaled
approximately $1,940,824. In addition, Healthteq's secured claim
against Silverside in the amount of $459,415 is wholly unsecured
due to the lack of collateral. The Department of Labor ("DOL")
wage claim in the amount of $26,458.67 is a wholly unsecured due to
the wage claims accruing outside the scope of Section 507(a)(4).
The Debtors' have not estimated the value of the various taxing
authorities' potential general unsecured claims for penalties and
interest on penalties. In the event there are excess proceeds
available from the collection of accounts receivable, the recovery
of the ERC Claims and the resolution of the Avoidance Actions,
after the payment of all Group I, Group II, Class I, Class II,
Class III, and Class IV claims, and payment of the final winddown
expense, such proceeds will be distributed to the Class V Creditors
on a pro-rata basis when funds become available. The Debtors do
not anticipate that there will be any funds available for
distribution to the Class V creditors.
An in-person hearing on confirmation of the Plan is scheduled for
Dec. 2, 2022, at 1:00 p.m., before the Honorable Lisa S. Gretchko,
in Courtroom 1975, 211 West Fort Street, Detroit, Michigan 48226.
Ballots and objections to confirmation of the Plan are due Nov. 21,
2022.
Attorneys for the Debtors:
Lynn M. Brimer, Esq.
Pamela S. Ritter, Esq.
STROBL SHARP PLLC
300 East Long Lake Road, Suite 200
Bloomfield Hills, MI 48304-2376
Telephone: (248) 540-2300
Facsimile: (248) 645-2690
E-mail: lbrimer@strobllaw.com
pritter@strobllaw.com
A copy of the Second Amended Plan of Liquidation dated Oct. 14,
2022, is available at https://bit.ly/3Tn1kvU from
PacerMonitor.com.
About Silverside Senior Living
Silverside Senior Living, LLC and its affiliate, Graceway South
Haven, LLC, sought Chapter 11 protection (Bankr. E.D. Mich. Lead
Case No. 21-44887) on June 7, 2021. In the petitions signed by CEO
Anthony Fischer, Jr., the Debtors disclosed total assets of up to
$50,000 and liabilities of up to $10 million.
Judge Lisa S. Gretchko oversees the cases.
The Debtors tapped Strobl Sharp PLLC as bankruptcy counsel and CND
Law as special healthcare counsel. Cole, Newton & Duran serves as
the Debtors' accountant.
SOUTHERN CALIFORNIA: Owner Files Own Plan to Pay SRI, Unsecureds
----------------------------------------------------------------
Darrell Maag, the sole equity holder and managing member of
Southern California Research, LLC, submitted his own Chapter 11
Plan of Reorganization and a Disclosure Statement to resolve claims
against him.
The Debtor commenced his Chapter 11 case to protect and preserve
his assets from the aggressive efforts of Southwestern Research,
Inc ("SRI") to collect on the Default Judgment and to restructure
his debts in a manner that would ensure equitable payment to all
creditors and protect the Debtor's exempt interest in his property.
To attempt to restructure and repay his debts, the Debtor focused
on liquidating his non-exempt assets to generate cash for payments
under his Plan and on reducing his living expenses. Further, during
the Chapter 11 Case, the Debtor undertook significant efforts to
successfully resolve his disputes with SRI, his largest secured
creditor, including efforts to negotiate and mediate the disputes
with SRI and Travelers with the goal of recovering payment from
Travelers under the applicable policy coverage and for the Debtor's
bad faith claims. In his ongoing efforts to negotiate and bring
the parties to mediation, the Debtor is hoping to liquidate his
claims against Travelers through settlement, thereby eliminating
further potentially significant litigation expenses.
Under the Plan, Class 4 is the SRI Claim in the amount of
$19,179,892, which claim and amount is disputed by the Debtor. On
the latest of (a) the Effective Date, (b) the date on which the SRI
Claim becomes allowed, and (c) such other date as mutually may be
agreed to by and between the Debtor or Reorganized Debtor and the
Holder of the SRI Claim, or as soon thereafter as practicable, SRI
shall receive a Cash payment equal to its pro rata share of the
General Unsecured Claim Effective Date Payment, estimated to total
$1.05 million. Next, on the later of (a) the date on which the SRI
Claim becomes allowed and (b) the date on which any payment is made
from Travelers (the "Travelers Policy Payment") under its
applicable insurance policy, SRI shall receive a Cash payment equal
to the amount of the Travelers Policy Payment. In addition, on the
later of (a) the date on which the SRI Claim becomes Allowed and
(b) the closing of a sale of the Thousand Oaks Property, SRI shall
receive from escrow the SRI Equity Payment, estimated at $967,000.
Finally, on the latest of (a) the date of which the SRI Claim
becomes Allowed, (b) the closing of a sale of the Thousand Oaks
Property, and (c) the closing of the sale of the Oak Park Property,
SRI shall receive a Cash payment equal to its Pro Rata Share of the
General Unsecured Claim Final Plan Payment, estimated to total
$1.37 million.
Under the Plan, Class 5 is for General Unsecured Claims totaling
$79,630. Each Holder of an Allowed General Unsecured Claim shall
receive a Cash payment equal to its Pro Rata Share of the General
Unsecured Claim Effective Date Payment (as defined in the Plan),
estimated to total $1.05 million. In addition, on the latest of
(a) the date on which such General Unsecured Claim becomes Allowed,
(b) the closing of a sale of the Thousand Oaks Property, and (c)
the closing of the sale of the Oak Park Property, each Holder of an
Allowed General Unsecured Claim shall receive a Cash payment equal
to its Pro Rata Share of the General Unsecured Claim Final Plan
Payment, estimated to total $1.37 million. Class 5 is impaired.
Because the Plan provides that all estimated distributions under
the Plan shall be made from the Estate's Cash on Hand at
Confirmation and from cash projected to be received over the
subsequent 12 months from the liquidation and collection of the
Debtor's assets, the primary risks under the Plan are the risk that
the remaining unliquidated Assets have less value than projected.
In particular, the Debtor has projected that he will have $1.46
million in cash on hand on the Effective Date, which cash is
comprised of the remaining balance in the Debtor's non-exempt
deposit account(s) and the proceeds of the sales of the investments
and securities in the Debtor's Schwab Account. While the Debtor
believes his estimates are fairly accurate, it is impossible to
definitively predict the amounts to be received from the sale of
the Debtor's stocks and other securities, which are dependent on
market conditions. As a result, there is a risk that the actual
amount of Cash proceeds received from the liquidation of the Schwab
Account prior to the Effective Date is significantly lower than the
amount estimated. The Debtor's cash on hand will be used on the
Effective Date to (a) fund the Administrative Claims Reserve, (b)
make any necessary cure payments to holders of Allowed Secured
Claims, and (c) make pro rata distributions to holders of Allowed
Claims in order of priority.
Additionally, the Debtor intends to market and sell the Thousand
Oaks Property and the Oak Park Property within six months after the
Effective Date, when market conditions are likely to generate
greater interest due to the summer months and, ideally, the
stabilization of home mortgage rates. The Debtor has projected a
sale of the Thousand Oaks Property and the Oak Park Property at a
purchase price of no less than $2.05 million and $1.1 million,
respectively, based on current market comparables and the Debtor's
opinion of the value of the properties.
The net proceeds of the Oak Park Property, estimated at $1.03
million, will be used to make additional pro rata distributions to
holders of Allowed Claims in Class 4 and Class 5. Thus, there is a
risk that holders of Allowed Claims in Class 4 and Class 5 will
receive a smaller distribution than estimated if the Oak Park
Property sells for less than $1.1 million. Similarly, the net
proceeds from the sale of the Thousand Oaks Property, estimated at
$1.93 million, will be used to make distributions to holders of
Allowed Claims, after payment of the SRI Equity Payment (estimated
at $967,000) and the Debtor's homestead exemption ($626,400). Thus,
the Debtor estimates that a total of $340,600 will be distributed
on a pro rata basis to holders of Allowed Claims in Classes 4 and
5. This amount, however, could be significantly less than estimated
if the Thousand Oaks Property sells for less than $2.05 million.
Finally, the Debtor has claims against Travelers under his
insurance policy and for bad faith, the latter of which are
unliquidated and disputed. Travelers has offered to pay SRI the $3
million policy limit, but has not agreed to pay any additional
amounts under the policy, such as the additional $3.2 million in
supplemental payment demanded by SRI, or any amounts for the bad
faith claims. The Debtor and his counsel are analyzing the issues
related to prosecuting claims against Travelers, which involve the
consideration and weighing of many complex factors. The Debtor has
not yet retained counsel to pursue litigation against Travelers
but, if such counsel is retained, the engagement likely would be a
standard contingency fee arrangement. If the Debtor is not
successful in reaching a settlement or litigating his claims
against Travelers for coverage under the applicable insurance
policy and/or for bad faith, holders of Allowed Unsecured Claims,
including SRI, will not receive any further distributions under the
Plan, other than the General Unsecured Claims Effective Date
Payment and the General Unsecured Claims Final Plan Payments.
Counsel for Darrell Maag:
Craig G. Margulies, Esq.
Monsi Morales, Esq.
MARGULIES FAITH LLP
16030 Ventura Blvd., Suite 470
Encino, CA 91436
Telephone: (818) 705-2777
Facsimile: (818) 705-3777
E-mail: Craig@MarguliesFaithLaw.com
Monsi@MarguliesFaithLaw.com
A copy of the Disclosure Statement dated Oct. 14, 2022, is
available at https://bit.ly/3rYIboq from PacerMonitor.com.
About Southern California Research
Southern California Research, LLC is a private medical group in
Thousand Oaks, Calif., that conducts clinical research trials.
Southern California Research filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal.
Case No. 22-10022) on Jan. 12, 2022, listing $184,280 in assets and
$11,753,616 in liabilities. Darrell Maag, managing member, signed
the petition.
Darrell Derrick Maag, the owner of the Debtor, also filed a Chapter
11 petition for himself (Case No. 22-10023) on Jan. 12, 2022.
Judge Deborah J. Saltzman oversees the cases.
The Debtors tapped James R. Selth, Esq., at Weintraub & Selth, APC
as bankruptcy counsel; Gordon Rees Scully Mansukhani, LLP as
special counsel; and Hahn Fife & Company, LLP as financial advisor
and accountant.
STARFISH POOL: Seeks to Hire Henshaw Law Office as Counsel
----------------------------------------------------------
Starfish Pool Service, LLC seeks approval from the U.S. Bankruptcy
Court for the Eastern District of Texas to employ Henshaw Law
Office as counsel to handle its Chapter 11 case.
Henshaw Law Office will be paid at the rate of $400 per hour and
will be reimbursed for out-of-pocket expenses incurred.
The firm received a retainer of $9,000 from the Debtor.
David Henshaw, Esq., a partner at Henshaw Law Office, 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:
David S. Henshaw, Esq.
Henshaw Law Office
1530 P B Ln PMB H5358
Wichita Falls, TX 76302-2612
Tel: (469) 820-3900
Fax: (855) 650-0757
Email: david@henshawlaw.com
About Starfish Pool Service
Starfish Pool Service, LLC filed a Chapter 11 bankruptcy petition
(Bankr. E.D. Texas Case No. 22-41354) on Oct. 12, 2022, with up to
$50,000 in assets and up to $1 million in liabilities. Henshaw Law
Office is the Debtor's legal counsel.
STATERA BIOPHARMA: Incurs $7.8 Million Net Loss in First Quarter
----------------------------------------------------------------
Statera Biopharma, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $7.76 million on $997,839 of revenues for the three months ended
March 31, 2022, compared to a net loss of $5.28 million on $0 of
revenues for the three months ended March 31, 2021.
As of March 31, 2022, the Company had $13.51 million in total
assets, $15.94 million in total liabilities, and a total
stockholders' deficit of $2.43 million.
Statera said, "At March 31, 2022, we had cash and cash equivalents
of $0.15 million, which represents a decrease of $1.7 million since
the end of our last fiscal year. This decrease was caused by our
capital raise in the first quarter of 2022, offset by our net cash
used in operations of $3.8 million during the three months ended
March 31, 2022 and repayment of debt... We are a clinical-stage
company, have generated only insignificant revenues to date, and
have incurred cumulative net losses and expect to incur significant
expenses and operating losses for the foreseeable future as we
advance our lead candidates through clinical trials, progress our
pipeline candidates from discovery through pre-clinical
development, and seek regulatory approval and pursue
commercialization of our candidates. We do not have commercial
products other than CRO services, we have limited capital
resources, meaning that we are currently generating limited
revenues and cash from operations. We do not expect our cash and
cash equivalents will be sufficient to fund our projected operating
requirements or allow us to fund our operating plan, in each case,
beyond the second quarter of 2022. As a result, we will need
additional financing to support our continuing operations.
Historically, we have funded our operations through the sale of
equity and debt securities, as well as the receipt of funded
grants. Until such time as we can generate significant revenue
from product sales, if ever, we expect to finance our operations
through a combination of public or private equity and debt
financings or other sources, which may include collaborations with
third parties, the sale or license of drug candidates, the sale of
certain of our tangible and/or intangible assets, the sale of
interests in our subsidiaries or joint ventures, obtaining
additional government research funding, or entering into other
strategic transactions. However, we can provide no assurance that
we will be able to raise cash in sufficient amounts, when needed or
at acceptable terms. We do not expect that our existing cash and
cash equivalents will enable us to fund our operating expenses and
capital expenditure requirements beyond the second quarter of 2022.
If we are unable to raise adequate capital and/or achieve
profitable operations, future operations might need to be scaled
back or discontinued."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1318641/000143774922024497/cbli20220331_10q.htm
About Statera
Statera Biopharma, Inc. (formerly known as Cytocom, Inc. and
Cleveland Biolabs) is a pre-clinical and clinical biopharmaceutical
company developing multiple product candidates to address unmet
medical needs for use in diseases involving immune system
dysfunction.
An involuntary Chapter 11 bankruptcy case was filed against Statera
on Aug. 16, 2022, by three alleged creditors of the Company
alleging they are owed a total of $2.1 million on account of notes,
unpaid wages, and severance.
Statera Biopharma reported a net loss of $101.87 million for the
year ended Dec. 31, 2021, compared to a net loss of $12.09 million
for the year ended Dec. 31, 2020. As of Dec. 31, 2021, the Company
had $21.17 million in total assets, $22.67 million in total
liabilities, and a total stockholders' deficit of $1.51 million.
Lakewood, Colo.-based BF Borgers CPA PC, the Company's auditor
since 2022, issued a "going concern" qualification in its report
dated Oct. 4, 2022, citing that Company has suffered recurring
losses from operations and has a significant accumulated deficit.
In addition, the Company continues to experience negative cash
flows from operations. These factors raise substantial doubt about
the Company's ability to continue as a going concern.
STEPHEN STANLEY: Avoids Suit When Worker Failed to Report in Case
-----------------------------------------------------------------
A Family and Medical Leave Act suit against FCA US LLC was
dismissed by the Sixth Circuit on Tuesday because the worker who
filed the legal action didn't acknowledge it on his bankruptcy
petition.
Applying the doctrine of judicial estoppel, which prevents a party
from making a claim in one suit that is contrary to a claim in
another, Judge David W. McKeague of the US Court of Appeals for the
Sixth Circuit said that Stephen Stanley benefited from the
omission, and the omission wasn't inadvertent.
"Stephen J. Stanley, Jr. filed two lawsuits which together give
rise to the issues before us: first, a Chapter 13 bankruptcy
lawsuit and second, a civil lawsuit alleging that his former
employer, FCA US, violated the Family and Medical Leave Act (FMLA).
Stanley failed to disclose the civil lawsuit in his bankruptcy
petition. And as a result of that omission, the district court
never reached the merits of Stanley’s FMLA claim. Instead, the
district court granted summary judgment for FCA US on judicial
estoppel grounds. Stanley contends that was a mistake because he
had no motive to omit this employment suit as his bankruptcy plan
did not provide for a discharge of his debts. Because we find he
did have motive to conceal the claim, we affirm the district court
opinion," Circuit Judge McKeague said.
Stanley filed for Chapter 13 bankruptcy on May 24, 2018. As part
of his application, he answered the question of whether there was
any money or property owed to him, including "Claims against third
parties, whether or not you have filed a lawsuit or made a demand
for payment" in the negative. That question provided examples of
possible claims he should list: "Accidents, employment disputes,
insurance claims, or rights to sue."
On Dec. 11, 2018, Stanley's bankruptcy plan was modified to provide
that there would be "no future modification of dividend to
unsecured creditors below 100%." A week later, the bankruptcy
court confirmed Stanley's plan. But both before and after filing
for bankruptcy, Stanley was having problems with his employment at
FCA US. Stanley alleges FCA US violated the FMLA and that those
violations led to the termination of his employment on May 31,
2018. The Union filed two grievances on Stanley's behalf—one
before he filed for bankruptcy and one after. Both grievances were
withdrawn by the Union.
Unhappy with that resolution, Stanley filed the at issue FMLA
interference lawsuit on March 22, 2019. As part of this FMLA
interference suit, Stanley was deposed on January 27, 2021, at
which point counsel for FCA US questioned him about whether he had
disclosed the case in his bankruptcy proceedings. He had not. FCA
US sent a settlement letter to Stanley on February 25, 2021,
raising the same issue.
In response to the questioning by FCA US, on April 27, 2021,
Stanley updated his
bankruptcy asset disclosure to include: "Employment with Fiat
Chrysler Automobiles terminated May 31, 2018 (post-petition) in
violation of FMLA" with "unknown" value. Finding that amendment too
little too late, the district court granted summary judgment for
FCA US on judicial estoppel grounds. Stanley v. FCA US, LLC, No.
3:19 CV 640, 2021 WL 5760546, at *9 (N.D. Ohio Dec. 3, 2021). The
Sixth Circuit appeal followed.
A copy of the opinion is available at
https://www.opn.ca6.uscourts.gov/opinions.pdf/22a0228p-06.pdf
THREE ARROWS: Under Probe by CFTC, SEC After Bankruptcy Filing
--------------------------------------------------------------
Jaroslaw Adamowski of CryptoNews reports that American regulators
have launched investigations into the activities of bankrupt
Singaporean hedge fund Three Arrows Capital (3AC), with the
Securities and Exchange Commission (SEC) and the Commodity Futures
Trading Commission (CFTC), seeking to identify the reasons and
responsible persons behind the crypto-focused firm's collapse.
As part of their activities, the two U.S. agencies are now working
to determine whether Three Arrows Capital violated rules by
misleading its investors about the contents of its balance sheet
and not registering with the regulators, two persons familiar with
the matter told Bloomberg.
The two agencies are yet to release official confirmations of their
respective investigations into the hedge fund and its financial
woes.
As part of the company's bankruptcy proceedings, earlier this
month, a number of non-fungible tokens (NFTs) collected by Starry
Night Capital, an NFT fund set up by 3AC, were moved to a new
wallet by Teneo, the consultancy leading the hedge fund’s
bankruptcy proceedings.
In June 2022, the Monetary Authority of Singapore (MAS) reprimanded
the hedge fund for providing false information to the regulator,
and exceeding the assets under management (AUM) threshold that is
allowed for a registered fund management company (RFMC) under the
nation's law. The agency said it has been investigating the
business since last 2021.
"The reprimand relates to contraventions by TAC which occurred
prior to its notification to MAS in April 2022. MAS has been
investigating these contraventions since June 2021," the
Singaporean regulator said in a statement. "In light of recent
developments which call into question the solvency of the fund
managed by TAC, MAS is assessing if there were further breaches by
TAC of MAS' regulations."
About Three Arrows Capital
Three Arrows Capital Ltd. was an investment firm engaged in
short-term opportunities trading, and is heavily invested in
cryptocurrency, funded through borrowings.
As of April 2022, the Debtor was reported to have over $3 billion
of assets under its management.
Three Arrows Capital Ltd. was incorporated as a business company
under the laws of the British Virgin Islands. Its sole shareholder
owning all of its "management shares" is Three Arrows Capital Pte.
Ltd., which previously operated as a regulated fund manager in
Singapore until 2021, when it shifted its domicile to the BVI, as
part of a global corporate plan to relocate operations to Dubai.
The Debtor borrowed digital and fiat currency from multiple lenders
to fund its cryptocurrency investments. After cryptocurrency lost
99% of its value, and then prices of other cryptocurrencies had
rapid declines, the Debtor reportedly defaulted on its
obligations.
On June 24, 2022, one of the Debtor's many creditors -- DRB Panama
Inc. -- filed an application to appoint joint provisional
liquidators -- and thereafter, full Liquidators -- in the Eastern
Caribbean Supreme Court in the High Court of Justice (Commercial
Division) located in BVI. The application was assigned claim number
VIHCOM2022/0117.
Subsequently, on June 27, 2022, the Debtor filed its own
application for the appointment of joint liquidators before the BVI
Commercial Court.
On June 29, 2022, the Honorable Mr. Justice Jack of the BVI
Commercial Court appointed Russell Crumpler and Christopher Farmer
of Teneo (BVI) Limited as joint liquidators of Three Arrows Capital
Ltd.
On July 1, 2022, liquidators of Three Arrows Capital filed a
Chapter 15 bankruptcy in the U.S. (Bankr. S.D.N.Y. Case No.
22-10920) to seek recognition of the BVI proceedings. Judge Martin
Glenn is the case judge. Latham & Watkins, led by Adam J. Goldberg
is counsel in the U.S. case.
The law firm of Ogier, led by Grant Carroll, is advising the
liquidators in the BVI proceedings.
TITLE PIPE: Seeks to Hire Cheryl Guiddy as Accountant
-----------------------------------------------------
Title Pipe, Inc. seeks approval from the U.S. Bankruptcy Court for
the District of Idaho to employ Cheryl Guiddy, a practicing
accountant in Meridian, Idaho, to prepare tax documents.
The accountant will be paid at the rate of $350 per hour.
Ms. Guiddy disclosed in a court filing that she is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
Ms. Guiddy holds office at:
Cheryl M. Guiddy, CPA
1120 S Rackham Way, Suite 100
Meridian, ID 83642
Phone: (208) 333-8965
Fax: (208) 333-8966
Email: cherylguiddy@harriscpas.com
About Title Pipe
Title Pipe, Inc. -- https://www.titlepipe.com/ -- is a software
company in Eagle, Idaho, which offers computer systems design and
related services.
Title Pipe filed a voluntary petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. D. Idaho Case No. 22-00328) on July
26, 2022. The Debtor has elected to proceed under Subchapter V of
Chapter 11.
In the petition filed by its chief executive officer, Mark A.
Rodeghiero, the Debtor listed assets between $100,000 and $500,000
and liabilities between $1 million and $10 million.
Judge Joseph M. Meier oversees the case.
Patrick John Geile, Esq., at Foley Freeman, PLLC and Cheryl Guiddy,
CPA serve as the Debtor's legal counsel and accountant,
respectively.
TPT GLOBAL: Unit Closes Acquisition of IST LLC
----------------------------------------------
TPT Global Tech, Inc. said that its subsidiary TPT Strategic Inc.
has completed the acquisition of Information Security and Training
LLC (IST LLC), a general construction and information technology
services company with approximately $5.4M in backlogged revenue as
of Dec. 31, 2021, from executed Government contracts. IST is based
in Huntsville, Alabama and has branch offices in Nashville TN,
Birmingham Al, Jackson MS, Fort Campbell KY, New Orleans LA, and
Joint Base Lewis-McChord. IST has divisions in Construction and IT
Technology and is a general contractor with experience since 2008
The Company has completed more than 15 projects for different
agencies in the Federal marketplace since its inception in 2008 as
a contractor. IST has been providing design-build construction,
demolition, abatement, earthwork, concrete, steel and metal work,
masonry, underground utilities, environmental protection, and site
restoration services since 2008. IST differentiates itself by
offering superior quality results at a competitive price. IST
safely delivers projects on time and within budget. IST has a
bonding capacity of $10M per single project and $20M aggregate.
IST's Information Technology Services Division provides program
management, Systems Engineering, Software Development, Network
Engineering, Records Management and Controls, Physical Security and
Information Assurance, Video Teleconferencing and AV systems, Help
Desk Services and Information Technology Statements of
Qualification. IST is committed to maintaining customer
satisfaction, trust and integrity by delivering quality products
and services conforming to industry best practices and continuous
process improvement.
The TPT Strategic and IST, LLC agreement for the acquisition is a
stock transaction where the founder and sole interest holder,
Everett Lanier, is to receive Preferred Series B shares of TPT
Strategic that will convert to a 10% ownership of TPT Strategic
under certain conditions. The acquisition includes the assumption
of all assets and certain liabilities which approximate $1.3M and
$1.2M, respectively, as of Dec. 31, 2021. Unaudited revenues and
net income for IST the year ended Dec. 31, 2021 were approximately
$2.8M and $167,000 respectively.
Now that the acquisition is completed, Everett Lanier will remain
as the president and will become a Board Member of TPT Strategic.
Everett Lanier was the founder, president and CEO of IST, LLC and
has over 22 years of IT experience and 30 years in construction and
engineering having started in his family's business. Everett
earned a Bachelor of Science Degree in Applied Mathematics and
Computer Science from Alabama A&M University. His experience
includes program management, business development, capture
management and project engineering. According to the Company,
Everett possesses a broad knowledge of business operations and
program matrix management experience who has demonstrated the
ability to manage relationships and complex programs.
With the acquisition of IST, TPT Strategic has been restructured as
the new Real Estate construction technology and Smart City
Development division of TPT Global Tech. The Company also believes
there are many cross-pollination business opportunities that will
help TPT Global Tech with its long-term corporate objectives. IST
has a full-time government procurement team that dedicates
resources to source State and Federal contracts such as 5G
Telecommunication, IT, Data, Satellite Technology, Medical
Technology, Media, Defense Systems, Cyber Security and
infrastructure building.
"I am pleased that we were able to get the IST acquisition over the
finish line. It has been such a pleasure working with the IST team
and we look forward to a long and mutuality beneficial working
relationship with Everett and the other IST team members as we push
forward with our Smart City initiatives in the US and abroad," said
Stephen Thomas, CEO of TPT Global Tech.
About TPT Global Tech
TPT Global Tech Inc. (OTC:TPTW) based in San Diego, California, is
a technology-based company with divisions providing
telecommunications, medical technology and product distribution,
media content for domestic and international syndication as well as
technology solutions. It offers Software as a Service (SaaS),
Technology Platform as a Service (PAAS), Cloud-based Unified
Communication as a Service (UCaaS). TPT Global Tech offers
carrier-grade performance and support for businesses over its
private IP MPLS fiber and wireless network in the United States.
TPT Global Tech's cloud-based UCaaS services allow businesses of
any size to enjoy all the latest voice, data, media and
collaboration features in today's global technology markets. It
also operates as a Master Distributor for Nationwide Mobile Virtual
Network Operators (MVNO) and Independent Sales Organization (ISO)
as a Master Distributor for Pre-Paid Cell phone services, Cell
phone Accessories and Global Roaming Cell phones.
TPT Global reported a net loss attributable to shareholders of
$4.02 million for the year ended Dec. 31, 2021, compared to a net
loss attributable to shareholders of $8.07 million for the year
ended Dec. 31, 2020. As of June 30, 2022, the Company had $9.32
million in total assets, $32.10 million in total liabilities,
$18.38 million in total mezzanine equity, and a total
stockholders'
deficit of $41.16 million.
Draper, UT-based Sadler, Gibb & Associates, LLC, the Company's
auditor since 2016, issued a "going concern" qualification in its
report dated April 14, 2022, citing that the Company has suffered
recurring losses from operations and has a net capital deficiency
which raises substantial doubt about its ability to continue as a
going concern.
VICTORIA TOWERS: Sanford Says Creditors' Plan Confirmable
---------------------------------------------------------
Sanford Avenue Partner LLC, the senior secured creditor and a
co-sponsor, together with American Chengyi Investment Management
Group Inc., of the First Amended Joint Chapter 11 Plan of
Liquidation, dated October 11, 2022 (the "Creditors' Plan") for
Victoria Towers Development Corp. (the "Debtor"), responds to (a)
the objection of Abraham Leser, a junior judgment creditor, to the
First Amended Disclosure Statement and (b) the Debtor's objection
to Leser's claim.
Leser objects to the Disclosure Statement to the Creditors' Plan on
the grounds that the Creditor' Plan cannot be confirmed since it is
not fair and equitable and violates the absolute priority rule
because, inter alia, it seeks to distribute $417,365 in debtor
funds to Xizhu Bai, a class 6 unsecured creditor, ahead of Mr.
Leser, an undisputed Class 5 judgment creditor, who will receive
nothing. Although objections to a plan may be raised at a hearing
on the adequacy of the disclosure statement filed in connection
with a plan where the plan is facially unconfirmable, that is not
the case here, because the Creditors' Plan is confirmable. See,
e.g., In re Quigley Co., 377 B.R. 110, 115-116 (Bankr. S.D.N.Y.
2007). The Disclosure Statement contains adequate information about
a confirmable plan and must be approved for solicitation. Thus,
Leser's Objection is not appropriate at the disclosure statement
stage and should be rejected. In fact, Leser made a similar
objection in connection with the hearing on the Debtor's disclosure
statement on the Debtor's plan (which included a return of escrow
funds to Bai), as amended. Importantly, at a hearing on April 5,
2022, that objection was specifically overruled and the Court
approved the Debtor's disclosure statement.
As a substantive matter, Leser does not argue that there is enough
value in the real property owned by the Debtor, certain condominium
units (the "Units") located at the property commonly known as
Victoria Towers Condominium and located at 133-38 Sanford Avenue,
Flushing, New York, New York (the "Real Property") to pay his
secured claim (which is, notably, not perfected as to any
individual Unit at the Real Property). The crux of the Leser
Objection is that Bai, an unsecured creditor, is receiving a
greater distribution as to his claim (the "Bai Claim"), which claim
is subordinate to the claim asserted by Lesser (Proof of Claim No.
3) ("Leser's Claim"), and therefore, the absolute priority rule is
violated. That is simply not the case. Bai is not receiving a
distribution under the Creditors' Plan ahead of Leser, but rather,
a return of $417,365.00 which Bai deposited into an escrow account
being held by the escrow agent for Victoria on account of Bai's
attempted purchase of 12 units (the "Bai Units") of Victoria, which
Victoria failed to close on (the "Bai Escrow Funds").3 The Bai
Escrow Funds never became property of the Debtor's estate. Had the
Debtor ratified the Bai purchase of the Bai Units as Leser tries to
argue, the Debtor would have (i) delivered title when the
certificate of occupancy was issued in January of 2021 and (ii)
taken down the escrow amount to pay, among other things, its
secured creditors, like Sanford and possibly real estate taxes
which are due and owing and come ahead of Leser's claim. The Debtor
did no such thing. Instead, the Debtor argued that the Bai Units
were not sold to Bai but remain property of the Debtor's estate and
any action by Bai to force a closing on the Bai Units would be in
violation of the stay. (See Debtor's Disclosure Statement, as
amended [Case No. 20- 73303, Dkt. No.'s 64 & 67]). So either Mr.
Bai gets the Bai Units (and his damages claim for failure to close
and the appreciation of the value of those Units from 2018) or he
gets the Bai Escrow Funds.
What Leser fails to acknowledge is that the Bai Escrow Funds never
became property of the Debtor's estate because Victoria failed to
deliver clear title to the Bai Units to Bai. Somehow Leser
concludes that Bai owns the Units, and as a result, Leser omits the
necessary logical conclusion associated with the fact that such
title was never delivered. If Bai owns the Bai Units, (i) the Bai
Escrow Funds go to Sanford, not Leser (ii) there are fewer Units to
sell to satisfy the Allowed Sanford Secured Claim and the Allowed
Chengyi Secured Claim, which are undisputedly ahead of Leser, and
(iii) there are still no funds available to distribute to Leser on
account of his claim. Thus, if we lived in the realty that Leser
proposes and Victoria delivered clear title to Bai, Bai then would
be the owner of the Bai Units, the Bai Escrow Funds (together with
the $7,000,000.00 that Myint J. Kyaw a/k/a Jeffrey Wu ("Wu"), a
debtor before the Bankruptcy Court, and his wife, Ioc Heng Ip ("Ip"
or "Veronica Wu"), were supposed to, but failed to pay to Victoria
as part of a 2018 settlement agreement with Bai related to Bai's
judgments against the Wu's (the "Pre-Petition Settlement
Agreement"), and the balance of what was due by Mr. Bai) would be
turned over to Sanford (or Sanford's predecessor in interest
between 2018 and early 2020). There would be fewer Units to
liquidate and even less value in the Real Property to satisfy the
Allowed Sanford Secured Claim and the Allowed Chengyi Secured
Claim, much less to flow down to Leser. Bai, in the meantime, has
been paying real estate taxes and common area charges on the Bai
Units, thereby conferring a benefit to the Debtor. Without those
payments, the real estate taxes due would be much higher and the
building (as well as those Units) would be in much worse condition
than it currently is.
Leser somehow also seeks to suggest that, because Sanford and Bai
are both represented by KPL, Bai is getting something more than he
should from Victoria. That is simply not the case, and this is just
an attempt at a distraction which has no legal significance or
bearing on this case and barely warrants a response. First, the
representation of Sanford and Bai by KPL was disclosed to the Court
and all of the parties in this case (and the affiliated cases)
since the inception of the Debtor's case. Bai's ownership interest
was disclosed in that filing. Any conflicts, or potential conflicts
between Sanford and Bai, to the extent any exist, were fully
addressed with Sanford and Bai, are not before this Court, and do
not affect Leser or the Debtor (or its affiliates). While Leser
suggests that Bai is being treated more advantageously because he
is a principal of Sanford, Bai is not getting the Bai Units he
bargained for (or their appreciation in value) and Bai is left with
an unsecured claim against Victoria Towers. Bai is receiving the
return of his funds that were placed in a secure escrow account in
the event that he never closed on the Bai Unit transactions, as any
purchaser whose sale transaction was not consummated as a result of
the seller's breach, which is no advantage whatsoever. As the Court
is well aware, Bai also has two judgments against Wu and his wife
personally, and Bai is pursuing his rights before this Court in the
Wu personal case.
Further, Leser is simply wrong when he characterizes the Plan as
allowing Bai to keep the Bai Units which he tried to purchase as
part of the Pre-Petition Settlement Agreement (which Wu, Veronica
and the Debtor breached). As reflected specifically in the Plan,
the Bai Units revert back to the Debtor and will be included in the
Units to be sold. Bai will not be the owner of any of the Bai Units
and they will be transferred to either Sanford (in satisfaction of
the Allowed Sanford Secured Claim) or to a third party who makes a
higher and better offer for the collateral. Leser is free to bid on
all of the Units of Victoria.
Sanford argues that the Creditors' Disclosure Statement in this
case clearly contains adequate information that would enable a
hypothetical investor to make an informed judgment about the Plan.
Accordingly, Sanford asserts that the Court should overrule Leser's
Objection and approve the Disclosure Statement.
Attorneys for Sanford Avenue Partner LLC:
Margarita Y. Ginzburg, Esq.
KRAVIT PARTNERS, LLC
27 Red Barn Road
Hyde Park, NY 12538
Telephone: 212-252-0550
E-mail: mginzburg@kravit.com
Attorney American Chengyi Investment Management Group Inc.:
Scott K. Levine, Esq.
Allison Arotsky, Esq.
MORITT HOCK & HAMROFF LLP
400 Garden City Plaza
Garden City, NY 11530
Tel: 516.873.2000
About Victoria Towers Development
Flushing, N.Y.-based Victoria Towers Development Corp. is the owner
of fee simple title to 29 residential condo units located at 133 38
Sanford Avenue, Flushing N.Y., having an appraised value of $33.37
million.
Victoria Towers filed a Chapter 11 petition (Bankr. E.D.N.Y. Case
No. 20-73303) on Oct. 30, 2020. In its petition, the Debtor is
closed $33,370,000 in assets and $39,217,115 in liabilities. The
petition was signed by Myint J. Kyaw, president.
The Hon. Robert E. Grossman presides over the case.
Rosen & Kantrow, PLLC, serves as the Debtor's bankruptcy counsel.
VITAL PHARMACEUTICALS: Section 341(a) Meeting Set for November 18
-----------------------------------------------------------------
The U.S. Trustee for Region 21 will convene a meeting of creditors
of Vital Pharmaceuticals Inc. and its debtor-affiliates on Nov. 18,
2022, at 9:30 p.m. (Prevailing Eastern Time). The meeting will be
held by telephone:
Trustee: Office of the US Trustee
Call in number: 1-866-915-4419
Participant Code: 6071331
The 11 U.S.C. Sec. 341(a) meeting may be continued or adjourned to
a later date. If so, the date will be on the court docket. The
Debtor's representative must attend the meeting to be questioned
under oath. Creditors may attend, but are not required to do so.
About Vital Pharmaceuticals
Since 1993, Florida-based Vital Pharmaceuticals, Inc., d/b/a Bang
Energy and as VPX Sports, has developed performance beverages,
supplements, and workout products to fuel high-energy lifestyles.
VPX Sports is the maker of Bang energy drinks, among other consumer
products.
Vital Pharmaceuticals, Inc., along with certain of its domestic
subsidiaries and affiliates, filed voluntary petitions for
protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D.
Fla. Lead Case No. 22-17842) on Oct. 10, 2022.
VPX estimated $500 million to $1 billion in assets and liabilities
as of the bankruptcy filing.
The Hon. Scott M. Grossman is the case judge.
The Debtors tapped LATHAM & WATKINS LLP as general bankruptcy
counsel; BERGER SINGERMAN LLP as co-bankruptcy counsel; HURON
CONSULTING GROUP INC., as financial advisor; and ROTHSCHILD & CO US
INC. as investment banker. STRETTO is the claims agent.
VOYAGER DIGITAL: Proposing a Liquidating Plan, Says U.S. Trustee
----------------------------------------------------------------
William K. Harrington, the United States Trustee for Region 2,
submitted an objection to the First Amended Disclosure Statement
Relating to the Second Amended Joint Plan of Reorganization of
Voyager Digital Holdings, Inc., and Its Debtor Affiliates Pursuant
to Chapter 11 Plan of the Bankruptcy Code.
The Disclosure Statement should not be approved because it fails to
provide creditors with sufficient information to allow them to make
an informed choice as to whether to approve or reject the Plan.
The Disclosure Statement fails to state that the Plan it supports
is a liquidating plan -- even though the Plan is premised on the
sale of substantially all the Debtors' assets. Thus, the
Disclosure Statement should make clear that, if the Plan is, in
fact, a liquidating plan, there is to be no discharge under section
1141(d) of the Bankruptcy Code.
In addition, the Disclosure Statement lists no justification for
the inclusion of third-party releases in the Plan. Although the
Plan, as amended, now allows parties-in-interest to opt into the
third-party releases, neither the Plan nor the Disclosure Statement
explain why such releases are warranted. As to the parties'
ability to opt into the releases, although the Plan provides for a
procedure whereby certain parties-in-interest may "opt in" to
third-party releases, as of this writing, the Disclosure Statement
does not include the form of ballots to be distributed to the
voting and non-voting parties-in-interest. This information is
crucial to determine whether parties in all classes will be able to
opt into the third-party releases.
Further, one party is to receive special protection under the Plan.
That party is the Debtors' Chief Executive Officer (the "CEO"),
who is the beneficiary of an injunctive provision that effectively
shields him and his assets from third-party claims.
Parties-in-interest can neither opt into or out of this provision.
They should be afforded the opportunity to weigh in on this
provision, which appears to function as a nonconsensual release.
With respect to avoidance actions, certain such actions are to be
included among the assets that the Debtors are selling to FTX US,
whereas other actions are to be excluded. The Disclosure Statement
does not identify which causes of action are to be transferred to
the purchaser and which are to be retained. A Special Committee
appointed by two independent directors of debtor Voyager Digital,
LLC, was established to investigate certain claims against third
parties, and its investigation is ongoing. The question as to which
causes of action are to be transferred to the purchaser is to be
answered in the Plan Supplement, so that, at this time, the parties
cannot evaluate this aspect of the Plan.
Although the Wind-Down Entity may carve out certain parties from
the definitions of Released Parties, that information is not to be
disclosed until the filing of the Plan Supplement one week before
the voting deadline. Accordingly, though the scope of the
definition of the Released Parties and Exculpated Parties may be
overbroad, parties-in-interest and the Court will not know how
broad those definitions are until the Plan Supplement is filed.
Parties will not have sufficient time to decide whether to opt into
the third-party releases.
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, chief executive officer, the Debtors estimated
assets and liabilities between $1 billion and $10 billion.
Michael E. Wiles oversees the cases.
The Debtors tapped Kirkland & Ellis, LLP as general bankruptcy
counsel; Berkeley Research Group, LLC as financial advisor; Moelis
& Company as investment banker; and Consello Group as strategic
financial advisor. Stretto, Inc. is the claims agent.
On July 19, 2022, the U.S. Trustee for the Southern District of New
York appointed an official committee of unsecured creditors in
these Chapter 11 cases. The committee tapped Epiq Corporate
Restructuring, LLC as noticing and information agent.
VOYAGER DIGITAL: Voting on FTX Plan to End Nov. 29
--------------------------------------------------
Bankrupt cryptocurrency trading platform Voyager Digital Holdings
obtained approval Wednesday from a New York judge to move forward
with a $1.44 billion sale transaction with FTX US after changes
were made to the no-shop provisions.
Voyager announced in its website on Oct. 21, with court approval
obtained, the company will move forward with a customer vote on the
broader Plan, through which the sale to FTX US will be implemented.
The deadline to vote on the Plan is November 29.
Claims agent Stretto will send solicitation packets to all
creditors entitled to vote on the plan, including customers.
Voyager says the Plan, including the sale to FTX US, maximizes
recoveries to Voyager's creditors, hence, creditors and customers
are urged to vote in favor of the Plan. Only ballots actually
received by the November 29th deadline will be accepted.
FTX US's bid, valued at approximately $1.422 billion, is comprised
of (i) the fair market value of all Voyager cryptocurrency at a
to-be-determined future date prior to closing of the sale, which at
current market prices as of September 26th is estimated to be
$1.311 billion, plus (ii) additional consideration which is
estimated to provide approximately $111 million of incremental
value to creditors. Voyager's claims against Three Arrows Capital
will remain with the bankruptcy estate and any recovery on account
of the 3AC claims will be available for additional distribution to
Voyager creditors.
Under the plan, the purchase price of Voyager's cryptocurrency by
FTX US, other than for VGX, will be determined based on a 20-day
historical average at a future point in time. Because of this, the
pro rata value each customer receives will be impacted by the price
of Voyager's cryptocurrency portfolio during the 20-day reference
period, which has not yet been set.
Value may be returned to customers through a mix of in-kind crypto,
USDC, and U.S. dollars, depending on the nature of a customer's
claims, whether and when customers transition to FTX US, and the
specific coins supported on the FTX US platform. Only customers who
transition to FTX US will be eligible to receive cryptocurrency as
part of their plan distribution -- customers who do not transition
to FTX US will receive their distributions in cash from the Voyager
bankruptcy estates. FTX US currently supports tokens that
represent about 77 percent of cryptocurrency denominated claims and
is seeking to add additional tokens to raise this percentage.
FTX US does not currently support the VGX token. FTX US has
offered to purchase all VGX held by Voyager and its affiliates for
a purchase price of $10 million. This is the floor price for VGX.
Voyager will continue to work internally and with third parties in
an effort to identify a higher and better solution for VGX that is
also compatible with the FTX US Asset Purchase Agreement. Any such
alternative solution, to be acceptable, must deliver value that
exceeds $10 million. If Voyager is unable to identify a higher and
better solution for VGX, it will accept FTX US's offer and this $10
million will be added into the purchase price for all of Voyager's
other cryptocurrency, for distribution to customers. VGX may
decline in value and may have no value post-consummation of the
plan. VGX constitutes a small fraction of the total value expected
to be returned to customers.
About Voyager Digital
Based in Toronto, Canada, Voyager Digital Holdings Inc. --
https://www.investvoyager.com/ -- runs a cryptocurrency platform.
Voyager claims to offer a secure way to trade over 100 different
crypto assets using its easy-to-use mobile application. Through its
subsidiary Coinify ApS, Voyager provides crypto payment solutions
for both consumers and merchants around the globe.
Voyager Digital Holdings Inc. and two affiliates sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead
Case No. 22-10943) on July 5, 2022. In the petition filed by
Stephen Ehrlich, as chief executive officer, the Debtor estimated
assets and liabilities between $1 billion and $10 billion.
The Debtors tapped KIRKLAND & ELLIS LLP as general bankruptcy
counsel; BERKELEY RESEARCH GROUP, LLC, as financial advisor; MOELIS
& COMPANY as investment banker; and CONSELLO GROUP as strategic
financial advisor. STRETTO, INC., is the claims agent.
WAND NEWCO 3: Moody's Affirms B3 CFR & Alters Outlook to Negative
-----------------------------------------------------------------
Moody's Investors Service, Inc. changed Wand NewCo 3, Inc.'s
("Caliber") outlook to negative from stable. At the same time,
Moody's affirmed Caliber's ratings including the B3 corporate
family rating.
"The change in outlook to negative reflects Moody's concern that
Caliber's revolver is going current in February 2023 and the
challenging refinancing environment for highly-leveraged companies
may prevent Caliber from receiving a timely extension from lenders
under similar terms," stated Moody's Vice President Stefan
Kahandaliyanage. "In addition, while Caliber has raised prices and
put other strategies in place to improve revenue and earnings
generation, leverage remains very high at around 9x and interest
coverage remains below 1x, thus Caliber needs to continue to make
material progress in driving earnings growth for credit metrics to
become more supportive of a B3 rating," added Kahandaliyanage.
Affirmations:
Issuer: Wand NewCo 3, Inc.
Corporate Family Rating, Affirmed B3
Probability of Default Rating, Affirmed B3-PD
Senior Secured First Lien Term Loan B, Affirmed
B2 (LGD3)
Senior Secured First Lien Revolving Credit Facility,
Affirmed B2 (LGD3)
Senior Secured Second Lien Term Loan, Affirmed
Caa2 (LGD5)
Outlook Actions:
Issuer: Wand NewCo 3, Inc.
Outlook, Changed To Negative From Stable
RATINGS RATIONALE
Caliber's B3 CFR is supported by its market leading position in the
collision repair industry. Caliber has almost twice the body shop
locations of the second largest industry competitor with nearly
full national coverage in the highly fragmented collision repair
sub-sector. The rating is also supported by Caliber's relationships
with nearly every major national insurance carrier, which represent
the vast majority of the company's revenues and earnings. Caliber's
rating is also supported by improved demand fundamentals as vehicle
miles traveled have returned to pre-COVID 19 levels and repair
severity, driven by the complexity of vehicle technology, continues
to rise.
However, despite these strong qualitative factors, Caliber's B3 CFR
reflects governance considerations, particularly the company's very
aggressive financial strategies under private equity majority
ownership, including its long history of relying on debt to fund
growth and a persistently high level of adjustments to earnings.
Despite recent sequential improvement in earnings since Q4 2021,
Caliber's Moody's adjusted EBITA coverage of interest at 0.8x
remains low and debt/EBITDA at 9.2x remains high as of LTM June 30,
2022. These calculations include Moody's standard adjustments for
operating leases and do not net cash on the balance sheet, nor
include credit agreement EBITDA add-backs. Caliber's credit metrics
have been persistently weak since it merged with Abra in 2019.
Further, although Moody's views Caliber as having adequate
liquidity, this is largely provided by its $300 million revolving
credit facility which expires in February 2024. Cash flow from
operations has not been enough to fully cover the company's
significant growth CAPEX investments and acquisitions to drive body
shop count higher, which has led to a sequential decline in cash
liquidity.
The negative outlook reflects Caliber's need to quickly address its
revolving credit facility expiration. It also reflects Caliber's
weak credit metrics and the challenges the company is facing as it
strives to grow its technician count in a tight labor market and
improve its earnings, while facing parts shortages and ongoing high
inflation.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings could be downgraded should liquidity weaken, the RCF not be
refinanced prior to going current, and/or if strategies to grow
revenue and earnings fail to result in EBITA/interest coverage
above 1x and positive free cash flow to debt. Given the negative
outlook, an upgrade is unlikely. However, ratings could be upgraded
if Caliber is able to sustain EBITA/interest above 1.25x with
debt/EBITDA reducing to below 6.5x and liquidity remaining at least
adequate.
Wand NewCo 3, Inc. is a leading collision repair provider with over
1,500 locations in the United States under the Caliber Collision
banner, with annual revenues of over $5 billion. The company is
majority owned by Hellman & Freidman LLC.
The principal methodology used in these ratings was Retail
published in November 2021.
[^] Recent Small-Dollar & Individual Chapter 11 Filings
-------------------------------------------------------
In re 14 High Torr Investment, LLC
Bankr. D.N.J. Case No. 22-18227
Chapter 11 Petition filed October 17, 2022
See
https://www.pacermonitor.com/view/ZV3AJ5Y/14_High_Torr_Investment_LLC__njbke-22-18227__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Special Unit Security Inc.
Bankr. C.D. Cal. Case No. 22-15668
Chapter 11 Petition filed October 18, 2022
See
https://www.pacermonitor.com/view/YQVK6WI/Special_Unit_Security_Inc__cacbke-22-15668__0001.0.pdf?mcid=tGE4TAMA
represented by: Matthew D. Resnik, Esq.
RHM LAW, LLP
E-mail: matt@rhmfirm.com
In re Dean St Brooklyn LLC (DE)
Bankr. S.D. Fla. Case No. 22-18042
Chapter 11 Petition filed October 18, 2022
See
https://www.pacermonitor.com/view/FI6CY4A/Crosby_Capital_USA_LLC__flsbke-22-18042__0001.0.pdf?mcid=tGE4TAMA
represented by: Joel Aresty, Esq.
JOEL M. ARESTY PA
E-mail: aresty@icloud.com
In re Mark W. Wisentaner
Bankr. D. Mass. Case No. 22-11487
Chapter 11 Petition filed October 18, 2022
represented by: Peter Daigle, Esq.
In re Plus Equipment, Inc.
Bankr. E.D. Pa. Case No. 22-12790
Chapter 11 Petition filed October 18, 2022
See
https://www.pacermonitor.com/view/I27FSOQ/PLUS_EQUIPMENT_INC__paebke-22-12790__0003.0.pdf?mcid=tGE4TAMA
represented by: Andrew S. Kasmen, Esq.
OBERMAYER REBMANN MAXWELL & HIPPEL LLP
E-mail: andrew.kasmen@obermayer.com
In re Mister Roberts Furniture, LLC
Bankr. S.D. Tex. Case No. 22-33098
Chapter 11 Petition filed October 18, 2022
See
https://www.pacermonitor.com/view/MRRGH7A/Mister_Roberts_Furniture_LLC__txsbke-22-33098__0001.0.pdf?mcid=tGE4TAMA
represented by: Reese W. Baker, Esq.
BAKER & ASSOCIATES
E-mail: courtdocs@bakerassociates.net
In re All About Kidz Learning Dev Center Inc.
Bankr. M.D. Ala. Case No. 22-32001
Chapter 11 Petition filed October 19, 2022
See
https://www.pacermonitor.com/view/IETALKQ/All_About_Kidz_Learning_Dev_Center__almbke-22-32001__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re MMJS Engineering
Bankr. S.D. Cal. Case No. 22-02691
Chapter 11 Petition filed October 19, 2022
See
https://www.pacermonitor.com/view/FICPOYI/MMJS_Engineering__casbke-22-02691__0001.0.pdf?mcid=tGE4TAMA
represented by: Matthew D. Resnik, Esq.
RHM LAW, LLP
E-mail: matt@rhmfirm.com
In re Dimples Dental Suite, PC
Bankr. D.D.C. Case No. 22-00191
Chapter 11 Petition filed October 19, 2022
See
https://www.pacermonitor.com/view/42PV3AI/Dimples_Dental_Suite_PC__dcbke-22-00191__0001.0.pdf?mcid=tGE4TAMA
represented by: Frank Morris II, Esq.
LAW OFFICE OF FRANK MORRIS II
E-mail: frankmorrislaw@yahoo.com
In re Rhonda Lee Barney
Bankr. M.D. Ga. Case No. 22-30558
Chapter 11 Petition filed October 19, 2022
represented by: Will Geer, Esq.
In re Adam William Beeler and Meagan Lee Beeler
Bankr. S.D. Ill. Case No. 22-30656
Chapter 11 Petition filed October 19, 2022
represented by: Robert Eggmann, Esq.
CARMODY MACDONALD P.C.
Email: ree@carmodymacdonald.com
In re Matthew L. Johnson
Bankr. S.D. Ind. Case No. 22-04200
Chapter 11 Petition filed October 19, 2022
represented by: David Krebs, Esq.
In re D Mart Rutherford, LLC
Bankr. D.N.J. Case No. 22-18298
Chapter 11 Petition filed October 19, 2022
See
https://www.pacermonitor.com/view/DD655CI/D_Mart_Rutherford_LLC__njbke-22-18298__0001.0.pdf?mcid=tGE4TAMA
represented by: Edward Vaisman, Esq.
VAISMAN LAW OFFICES
E-mail: vaismanlaw@gmail.com
In re ECSEM Corporation
Bankr. D.P.R. Case No. 22-03006
Chapter 11 Petition filed October 19, 2022
See
https://www.pacermonitor.com/view/Y3H3HTI/ECSEM_CORPORATION__prbke-22-03006__0001.0.pdf?mcid=tGE4TAMA
represented by: Mary Ann Gandia Fabian, Esq.
GANDIA FABIAN LAW OFFICE
E-mail: gandialaw@gmail.com
In re Tatoosh Distillery LLC
Bankr. W.D. Wash. Case No. 22-11693
Chapter 11 Petition filed October 19, 2022
See
https://www.pacermonitor.com/view/OF6MPRY/Tatoosh_Distillery_LLC__wawbke-22-11693__0001.0.pdf?mcid=tGE4TAMA
represented by: Kathryn P. Scordato, Esq.
` VORTMAN AND FEINSTEIN
E-mail: kpscordato@gmail.com
In re 5 Star Pool Plaster, Inc.
Bankr. N.D. Cal. Case No. 22-41033
Chapter 11 Petition filed October 20, 2022
See
https://www.pacermonitor.com/view/4VDLK7Y/5_Star_Pool_Plaster_Inc__canbke-22-41033__0001.0.pdf?mcid=tGE4TAMA
represented by: David C. Johnston, Esq.
DAVID C. JOHNSTON
E-mail: david@johnstonbusinesslaw.com
In re Luca Staedler Churchill
Bankr. D. Colo. Case No. 22-14069
Chapter 11 Petition filed October 20, 2022
represented by: David Wadsworth, Esq.
WADSWORTH GARBER WARNER CONRARDY, P.C.
E-mail: dwadsworth@wgwc-law.com
In re Peter Scott Churchill
Bankr. D. Colo. Case No. 22-14067
Chapter 11 Petition filed October 20, 2022
represented by: David Wadsworth, Esq.
WADSWORTH GARBER WARNER CONRARDY, P.C.
E-mail: dwadsworth@wgwc-law.com
In re Shiloh Staedler Churchill
Bankr. D. Colo. Case No. 22-14068
Chapter 11 Petition filed October 20, 2022
represented by: David Wadsworth, Esq.
WADSWORTH GARBER WARNER CONRARDY, P.C.
E-mail: dwadsworth@wgwc-law.com
In re CJ Construction and Development, Inc.
Bankr. D. Mass. Case No. 22-40757
Chapter 11 Petition filed October 20, 2022
See
https://www.pacermonitor.com/view/EU7PJEA/CJ_Construction_and_Development__mabke-22-40757__0001.0.pdf?mcid=tGE4TAMA
represented by: James P. Ehrhard, Esq.
EHRHARD & ASSOCIATES, P.C.
E-mail: ehrhard@ehrhardlaw.com
In re Rutland Holdings, LLC
Bankr. S.D. Miss. Case No. 22-51207
Chapter 11 Petition filed October 20, 2022
See
https://www.pacermonitor.com/view/CBKAWHY/Rutland_Holdings_LLC__mssbke-22-51207__0001.0.pdf?mcid=tGE4TAMA
represented by: Craig M. Geno, Esq.
LAW OFFICES OF CRAIG M. GENO, PLLC
In re Modern Warrior, Inc.
Bankr. E.D.N.Y. Case No. 22-72897
Chapter 11 Petition filed October 20, 2022
See
https://www.pacermonitor.com/view/HIVLLRA/Modern_Warrior_Inc__nyebke-22-72897__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Easy Construction, LLC
Bankr. C.D. Cal. Case No. 22-13971
Chapter 11 Petition filed October 21, 2022
See
https://www.pacermonitor.com/view/CO2SA4Y/Easy_Construction_LLC__cacbke-22-13971__0001.0.pdf?mcid=tGE4TAMA
represented by: Summer Shaw, Esq.
SHAW & HANOVER, PC
E-mail: ss@shaw.law
In re Add 2 Cart, LLC
Bankr. M.D. Fla. Case No. 22-03790
Chapter 11 Petition filed October 21, 2022
See
https://www.pacermonitor.com/view/HQKLVAQ/Add_2_Cart_LLC__flmbke-22-03790__0001.0.pdf?mcid=tGE4TAMA
represented by: Daniel A. Velasquez, Esq.
LATHAM LUNA EDEN & BEAUDINE LLP
E-mail: dvelasquez@lathamluna.com
In re Bond Express, Inc.
Bankr. E.D.N.Y. Case No. 22-42628
Chapter 11 Petition filed October 21, 2022
See
https://www.pacermonitor.com/view/P3GFIEY/Bond_Express_Inc__nyebke-22-42628__0001.0.pdf?mcid=tGE4TAMA
represented by: Alla Kachan, Esq.
LAW OFFICES OF ALLA KACHAN, P.C.
E-mail: alla@kachanlaw.com
In re VG Imperial Inc.
Bankr. E.D.N.Y. Case No. 22-42627
Chapter 11 Petition filed October 21, 2022
See
https://www.pacermonitor.com/view/PXTE4NQ/VG_Imperial_Inc__nyebke-22-42627__0001.0.pdf?mcid=tGE4TAMA
represented by: Alla Kachan, Esq.
LAW OFFICES OF ALLA KACHAN, P.C.
E-mail: alla@kachanlaw.com
In re Nationwide Investors, LLC
Bankr. S.D. Tex. Case No. 22-33128
Chapter 11 Petition filed October 21, 2022
See
https://www.pacermonitor.com/view/GO256WA/Nationwide_Investors_LLC__txsbke-22-33128__0001.0.pdf?mcid=tGE4TAMA
represented by: Reese W. Baker, Esq.
BAKER & ASSOCIATES
E-mail: courtdocs@bakerassociates.net
In re Eric Todd Sowers
Bankr. S.D. Tex. Case No. 22-33132
Chapter 11 Petition filed October 21, 2022
represented by: Susan Tran Adams, Esq.
In re Joseph Andrew Corona
Bankr. N.D. Ga. Case No. 22-41308
Chapter 11 Petition filed October 23, 2022
represented by: Scott Riddle, Esq.
In re Gerald W. Ebbett
Bankr. D. Ariz. Case No. 22-07122
Chapter 11 Petition filed October 24, 2022
In re Donald Chidi Amamgbo
Bankr. N.D. Cal. Case No. 22-41051
Chapter 11 Petition filed October 24, 2022
represented by: Michael R. Totaro, Esq.
Maureen J. Shanahan, Esq.
TOTARO & SHANAHAN
In re Creative Clouds Inc.
Bankr. D.N.J. Case No. 22-18424
Chapter 11 Petition filed October 24, 2022
See
https://www.pacermonitor.com/view/VNEMU4A/Creative_Clouds_Inc__njbke-22-18424__0001.0.pdf?mcid=tGE4TAMA
represented by: Justin M. Gillman, Esq.
GILLMAN, BRUTON & CAPONE, LLC
E-mail: ecf@gbclawgroup.com
In re FLX Enterprises of the Finger Lakes, LLC
Bankr. N.D.N.Y. Case No. 22-30701
Chapter 11 Petition filed October 24, 2022
See
https://www.pacermonitor.com/view/YNBJ65Y/FLX_Enterprises_of_the_Finger__nynbke-22-30701__0001.0.pdf?mcid=tGE4TAMA
represented by: Zachary D. McDonald, Esq.
ORVILLE & MCDONALD LAW, P.C.
In re Pyramid Auto Group, Inc.
Bankr. N.D.N.Y. Case No. 22-30702
Chapter 11 Petition filed October 24, 2022
See
https://www.pacermonitor.com/view/ZP3KXPY/Pyramid_Auto_Group_Inc__nynbke-22-30702__0001.0.pdf?mcid=tGE4TAMA
represented by: Zachary D. McDonald, Esq.
ORVILLE & MCDONALD LAW, P.C.
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.
Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
The Sunday TCR delivers securitization rating news from the week
then-ending.
TCR subscribers have free access to our on-line news archive.
Point your Web browser to http://TCRresources.bankrupt.com/and use
the e-mail address to which your TCR is delivered to login.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Philadelphia, Pa., USA.
Randy Antoni, Jhonas Dampog, Marites Claro, Joy Agravante,
Rousel Elaine Tumanda, Joel Anthony G. Lopez, Psyche A. Castillon,
Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and
Peter A. Chapman, Editors.
Copyright 2022. All rights reserved. ISSN: 1520-9474.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers. Information contained
herein is obtained from sources believed to be reliable, but is
not guaranteed.
The TCR subscription rate is $975 for 6 months delivered via
e-mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance thereof
are $25 each. For subscription information, contact Peter A.
Chapman at 215-945-7000.
*** End of Transmission ***