/raid1/www/Hosts/bankrupt/TCR_Public/221103.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, November 3, 2022, Vol. 26, No. 306
Headlines
14554 FRIAR LLC: Returns to Chapter 11, Lender Seeks Dismissal
4E BRANDS: Agrees With Texas on Toxic Sanitizer Clean-Up Terms
960 FRANKLIN: Case Summary & Four Unsecured Creditors
A MEN OF SARASOTA: Unsecureds Owed $554K to Get 35 Cents on Dollar
ABRAXAS PETROLEUM: Hikes Authorized Common Shares to 150M Shares
ACER THERAPEUTICS: USPTO Allows Patent Application Covering EDSIVO
ADAMS 3: Case Summary & One Unsecured Creditor
ADINA 74 REALTY: Case Summary & Three Unsecured Creditors
AEARO TECHNOLOGIES: 3M Can't Get New Trial After $50M Verdict
AIR METHODS: Bank Debt Trades at 33% Discount
ALTO MAIPO: Court Dismissed Comunidad de Aguas Adversary Case
APEX SIERRA: Voluntary Chapter 11 Case Summary
ARTERA SERVICES: Bank Debt Trades at 42% Discount
ARTERA SERVICES: Hires Kirkland & Ellis for Debt Advice
ASTRO ONE: Moody's Cuts CFR to Caa1, Outlook Negative
ASURION LLC: Bank Debt Trades at 30.5% Discount
AVAYA HOLDINGS: $350M Bank Debt Trades at 37% Discount
AVAYA HOLDINGS: Robert Theis Quits as Director
BAY CIRCLE: Thakkar Lacks Standing to Appeal Bankruptcy Order
BED BAD & BEYOND: Appoints Sue Gove as President, CEO
BIOPLAN USA: Bank Debt Trades at 31% Discount
BLOOMIN' BRANDS: Moody's Affirms 'Ba3' CFR, Outlook Remains Stable
BLUE CHIP: $4.1M Sale of Birmingham Properties to Cameron LR Okayed
BOARDRIDERS INC: Bank Debt Trades at 44% Discount
BORREGO COMMUNITY: Committee Taps Pachulski as Legal Counsel
BW NHHC HOLDCO: $185M Bank Debt Trades at 43% Discount
BW NHHC HOLDCO: $660M Bank Debt Trades at 37% Discount
BW NHHC HOLDCO: Bank Debt Trades at 44% Discount
CANOPY GROWTH: To Fast Track Entry Into U.S. Cannabis Market
CAREERBUILDER LLC: Bank Debt Trades at 34% Discount
CASTLE US HOLDING: $1.2B Bank Debt Trades at 31% Discount
CASTLE US HOLDING: $295M Bank Debt Trades at 31% Discount
CC HILLCREST: Unsecureds to be Paid in Full over 60 Months
CELSIUS NETWORK: After Data Release, Privacy Ombudsman Named
CELSIUS NETWORK: Creditors Urge Court to Stop Stablecoin Sales
CHRIS PETTIT: Trustee Taps Rogers Towers as Special Counsel
CINEWORLD GROUP: Gets OK to Hire Kirkland & Ellis as Legal Counsel
CINEWORLD GROUP: Taps Ernst & Young as Tax Services Provider
CINEWORLD GROUP: Taps Kramer as Independent Counsel to BOD
CINEWORLD GROUP: U.S. Subsidiaries Tap Willkie Farr as Counsel
CITY BREWING: Bank Debt Trades at 31% Discount
CLARUS THERAPEUTICS: Committee Seeks to Tap DLA Piper as Counsel
CLARUS THERAPEUTICS: Committee Taps A&M as Financial Advisor
CLARUS THERAPEUTICS: Sells to Tolmar for $7.25M Plus Royalties
CLIENT FIRST SETTLEMENT: Files Subchapter V Case
CNX RESOURCES: Incurs $427.1 Million Net Loss in Third Quarter
COCRYSTAL PHARMA: Regains Compliance With Nasdaq Listing Rule
COMMUNITY HEALTH: Posts $42 Million Net Loss in Third Quarter
CONVERGEONE HOLDINGS: $1.11B Bank Debt Trades at 33% Discount
CONVERGEONE HOLDINGS: Bank Debt Trades at 43% Discount
CORELOGIC INC: Bank Debt Trades at 34% Discount
CYPRESS HILLS: Seeks Approval to Hire Shiryak as Bankruptcy Counsel
DIMPLES DENTAL: Taps The Law Firm of MorrisMargulies as Counsel
DYNAMETAL TECHNOLOGIES: Gets Approval to Hire Liquidating Agent
EAST/ALEXANDER HOLDINGS: M360 Move to Dismiss the Appeal Granted
ELECTRIC LAST: Trustee's $100-Mil. Sale of All Assets Approved
ESJ TOWERS: Taps RL Legal Consulting Services as Special Counsel
EXELA INTERMEDIATE: Bank Debt Trades at 31% Discount
FARRAGUT HEALTH: Taps Tarpy, Cox, Fleishman & Leveille as Counsel
FAYETTE MEMORIAL: Connersville Asset Auction via Krueckeberg OK'd
FLX ENTERPRISES: Seeks to Tap Orville & McDonald Law as Counsel
FOX SUBACUTE: Amends Plan to Include PeoplesBank Unsecured Claim
FREE SPEECH SYSTEMS: Drops Vendor Ties With Jones Amid Probe
GIGA-TRONICS INC: Receives $300K Advance From BitNile Holdings
GOTO GROUP: Bank Debt Trades at 34% Discount
GRAVITY HOLDINGS: Files 2nd Subchapter V Bankruptcy
GREENPOINT TACTICAL: Freeborn & Peters Fee Application Approved
GUARACHI WINE: Sale of Assets to Titan Wine for $430K Approved
HASTINGS AND HOLLOWELL: Auction of $2.65M Property Set for Dec. 7-8
HEALTHIER CHOICES: Posts $2.1 Million Loss From Operations in Q3
HERTZ GLOBAL: Ex-CEO Wants Judge to Slam Brakes on Clawback Suit
HOME DEALS OF MAINE: $235K Sale of Buxton Asset to Raychards OK'd
HOME DEALS: Seeks to Hire Full Disclosure as Forensic Accountant
HORNBLOWER SUB LLC: Bank Debt Trades at 31% Discount
HOUSTON AMERICAN: Three Proposals Passed at Annual Meeting
INSTANT BRANDS: Bank Debt Trades at 33% Discount
IVANTI SOFTWARE: Bank Debt Trades at 34.5% Discount
JO-ANN STORES: $225M Bank Debt Trades at 36% Discount
JO-ANN STORES: $675M Bank Debt Trades at 32% Discount
JOURNEY PERSONAL: Bank Debt Trades at 35.8% Discount
KNIGHT HEALTH: Bank Debt Trades at 31% Discount
LECLAIRRYAN PLLC: Ch. 7 Trustee Turns to Malpractice Claims Deal
LOVING KINDNESS: Seeks to Hire Thompson Law Group as Counsel
LUCKY BUCKS: Bank Debt Trades at 34% Discount
M&M CREATIVE LAMINANTS: Files Bare-Bones Chapter 11 Petition
MCDERMOTT TECHNOLOGY: $2.2B Bank Debt Trades at 46% Discount
MCDERMOTT TECHNOLOGY: $310M Bank Debt Trades at 46% Discount
MICROVISION INC: Incurs $12.9 Million Net Loss in Third Quarter
MLN US HOLDCO: $1.12-Bil. Bank Debt Trades at 37.5% Discount
MONITRONICS INTERNATIONAL: Bank Debt Trades at 34% Discount
MOUNTAIN PROVINCE: Reports Q3 2022 Production, Sales Results
MOUNTAIN PROVINCE: Signs Term Sheet to Refinance Existing Notes
NABORS INDUSTRIES: Posts $13.8 Million Net Loss in Third Quarter
NATURALSHRIMP INC: Signs Deal to Merge With Yotta Acquisition
NELSON EDUCATION: $171M Bank Debt Trades at 43% Discount
NELSON EDUCATION: $311M Bank Debt Trades at 43% Discount
NOVABAY PHARMACEUTICALS: Registers 35.5M Shares for Possible Resale
ORBCOMM INC: S&P Placed 'B-' Issuer Credit Rating on Watch Neg.
ORIGINCLEAR INC: Opens $25M Equity Line With GHS Investments
PEAK PROPERTY: $422.5K Sale of Two Properties in Denver Approved
PECO ELECTRIC: Continued Operations to Fund Plan Payments
PYRAMID AUTO: Seeks to Hire Orville & McDonald Law as Counsel
QUEST SOFTWARE: Bank Debt Trades at 38% Discount
QUORUM HEALTH: $732M Bank Debt Trades at 31.5% Discount
RACKSPACE TECHNOLOGY: Bank Debt Trades at 35.5% Discount
REALD INC: Bank Debt Trades at 45% Discount
RED PLANET BORROWER: Bank Debt Trades at 37.5% Discount
REGIONAL HEALTH: Consummates HUD Refinancing of Senior Mortgages
REVLON CONSUMER: $85M Bank Debt Trades at 43% Discount
REVLON CONSUMER: Bank Debt Trades at 43% Discount
RGIS SERVICES: Moody's Withdraws 'B3' Corporate Family Rating
RICHARD D. CULLINAN: Judge Rejects Reinstatement of Security Deed
ROBERTSHAW US HOLDING: Bank Debt Trades at 35% Discount
RUDRA INVESTMENTS: Unsecureds Will Get 50% of Claims in Sale Plan
RUNNER BUYER: Bank Debt Trades at 32% Discount
SAS AB: To Start Filing Monthly Operating Results as Part of Ch.11
SHUTTERFLY LLC: Bank Debt Trades at 38% Discount
STATERA BIOPHARMA: Nasdaq Grants Request for Continued Listing
STORED SOLAR: Seeks to Tap Spinglass as Restructuring Advisor
SUSSEX RANDOLPH: Judge Remands Valley National Bank Eviction Case
SWAP.COM INC: Sale of Personal Property to Jay Group for $275K OK'd
TALEN ENERGY: Gets Court Clearance to Solicit Bankruptcy Plan Votes
TD HOLDINGS: Unit Acquires 65% Interest in Tongdow for RMB650M
THOMPSON MILLWORK: Commences Subchapter V Case
TMK HAWK PARENT: Bank Debt Trades at 47% Discount
TORTOISE BORROWER: Bank Debt Trades at 39% Discount
TRI HARBOR: Expert Testimony of Mr. Cowhey Allowed in Part
TROIKA MEDIA: Board OKs Change in Fiscal Year End to Dec. 31
UNITED ROAD: Bank Debt Trades at 36% Discount
VANTAGE DRILLING: Manuel Garcia Quits as Director
VENUE CHURCH: Sale of LED Wall for $40K to Abba's House Approved
WAHOO FITNESS: Bank Debt Trades at 38% Discount
WATLOW ELECTRIC: Eurotherm Transaction No Impact on Moody's B2 CFR
WESTBANK HOLDINGS: Trustee Taps Beau Box as Real Estate Broker
WJA ASSET: Debtor Will Liquidate its Assets to Pay Claims
WW INTERNATIONAL: Bank Debt Trades at 34.6% Discount
YAK ACCESS: $680M Bank Debt Trades at 41% Discount
YOURWAY HOSPITALITY: Seeks to Hire Shuker & Dorris as Counsel
[^] Recent Small-Dollar & Individual Chapter 11 Filings
*********
14554 FRIAR LLC: Returns to Chapter 11, Lender Seeks Dismissal
--------------------------------------------------------------
14554 Friar LLC filed for chapter 11 protection on Oct. 26, 2022.
The Debtor's primary asset is commercial real property commonly
known as 14554 Friar Street, Van Nuys, California 91411. Easy
Financial, LLC, holds a first position deed of trust against the
Property, securing a promissory note.
According to court filings, 14554 Friar estimates $1 million to $10
million in debt to 1 to 49 creditors. The petition states that
funds will not be available to unsecured creditors.
Secured Easy Financial, LLC, immediately filed a motion to dismiss
the Chapter 11 case.
Easy Financial first commenced a foreclosure proceeding against the
Property back in January 2019. A foreclosure sale was originally
set for July 23, 2019. On the eve of that foreclosure sale, July
22, 2019, the Property was transferred to the Debtor via a grant
deed. The Debtor had only been registered with the California
secretary of state on July 17, 2019, a week before that transfer
took place.
The Debtor then commenced its first Chapter 11 Bankruptcy, Case No.
1:19-bk-11843-VK, on that same day it received the Property, July
22, 2019. Easy Financial sought relief from stay in the First
Chapter 11 case. Prior to an evidentiary hearing taking place on
Easy Financial's motion for relief in that case, the Office of the
United States Trustee was successful in its Motion to Dismiss and
the Debtor's First Chapter 11 was dismissed on Jan. 24, 2020. The
Debtor had counsel in the First Chapter 11 case, but counsel was
ultimately ordered to disgorge fees.
After dismissal, the Debtor proceeded in the Los Angeles Superior
Court with an injunction against Easy Financial's ability to
proceed with a foreclosure sale. When the State Court injunction
was to be removed, the Debtor commenced a new Chapter 7 case on
June 24, 2020, Case No. 1:20-bk-11110-VK. Similar to the instant
case, the Debtor's Chapter 7 Case was filed by Leonid Kamenetsky,
Managing Member. The Debtor did not have separate legal counsel
representing it in the Chapter 7 Case. The Debtor's Chapter 7 case
was dismissed on July 13, 2020, for Debtor's failure to file its
schedules.
Ultimately an agreement was reached between the Debtor and Easy
Financial under Easy Financial's note and deed of trust, and Easy
Financial stopped its foreclosure proceedings.
Unfortunately, the Debtor then failed to perform under the note and
deed of trust, and Easy Financial commenced foreclosure proceedings
again.
Easy Financial's pending foreclosure sale date then prompted the
Debtor's filing of this case, after the Debtor failed to obtain an
Injunction against foreclosure in the Superior Court.
In seeking dismissal of the newest case, Easy Financial says it
believes that the Debtor's filing of this case was undertaken in
bad faith. In light of the past history of multiple filings and
dismissals by this Debtor, who is therefore familiar with the
Bankruptcy Court and its requirements, Easy Financial says the
Court should grant the dismissal of this Debtor's case along with
an 180-day bar to refining.
Counsel for Secured Creditor Easy Financial:
DAVID I. BROWNSTEIN
LAW OFFICE OF DAVID I. BROWNSTEIN
1 Park Plaza, Suite 600
Irvine, California 92614
Tel: (949) 486-4404
Fax: (949) 861-6045
E-mail: david@brownsteinfirm.com
About 14554 Friar LLC
14554 Friar LLC, doing business as Friar Street Properties, is a
Single Asset Real Estate (as defined in 11 U.S.C. Sec. 101(51B)).
14554 Friar LLC filed a petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. C.D. Cal. Case No. 22-11245) on Oct. 26,
2022. In the petition filed by Steven Kemenetsky, as owner, the
Debtor reported assets and liabilities between $1 million and $10
million.
4E BRANDS: Agrees With Texas on Toxic Sanitizer Clean-Up Terms
--------------------------------------------------------------
Alex Wolf of Bloomberg Law reports that 4E Brands Northamerica LLC,
a bankrupt unit of Kimberly-Clark de Mexico, struck a deal with a
Texas regulator on the proper ways of cleaning up its toxic hand
sanitizer, paving the way for a liquidation plan to be submitted
for court approval.
4E representatives and the Texas Commission on Environmental
Quality said at a bankruptcy court hearing Wednesday that they
reached agreeable language on proper disposal that will be added to
the liquidation plan.
Judge David Jones of the US Bankruptcy Court for the Southern
District of Texas said he would approve the Chapter 11 plan with
the regulator's sign-off.
About 4E Brands North America
4e Brands North America, LLC is a manufacturer of personal care and
hygiene products based in San Antonio, Texas. Its brand name
products include Blumen Hand Sanitizer, Assured Hand Sanitizer, and
various other hand sanitizers and hand soaps. The Debtor is no
longer operating.
4e Brands North America sought Chapter 11 bankruptcy protection
(Bankr. S.D. Texas Case No. 22-50009) on Feb. 22, 2022, with up to
$50,000 in assets and up to $50 million in liabilities. David Dunn,
chief restructuring officer, signed the petition.
The case is handled by Judge David R. Jones.
Matthew D. Cavenaugh, Esq., at Jackson Walker, LLP is the Debtor's
legal counsel. Stretto is the claims agent.
The U.S. Trustee for Region 6 appointed an official committee of
unsecured creditors on March 1, 2022. The committee tapped Tucker
Ellis, LLP as bankruptcy counsel; Munsch Hardt Kopf & Harr, P.C. as
Texas counsel; and Oxford Restructuring Advisors, LLC as financial
advisor.
960 FRANKLIN: Case Summary & Four Unsecured Creditors
-----------------------------------------------------
Debtor: 960 Franklin Owner LLC
320 Roebling St. Num. 302
Brooklyn, NY 11211
Business Description: 960 Franklin is engaged in activities
related to real estate.
Chapter 11 Petition Date: November 2, 2022
Court: United States Bankruptcy Court
Eastern District of New York
Case No.: 22-42760
Judge: Hon. Jil Mazer-Marino
Debtor's Counsel: Mark Frankel, Esq.
BACKENROTH FRANKEL & KRINSKY, LLC
800 Third Avenue
New York, NY 10022
Tel: (212) 593-1100
Email: mfrankel@bfklaw.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $10 million to $50 million
The petition was signed by David Goldwasser as manager.
A full-text copy of the petition containing, among other items, a
list of the Debtor's four unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/R35YF2I/960_Franklin_Owner_LLC__nyebke-22-42760__0001.0.pdf?mcid=tGE4TAMA
A MEN OF SARASOTA: Unsecureds Owed $554K to Get 35 Cents on Dollar
------------------------------------------------------------------
The A Men of Sarasota, Inc., submitted a Plan of Reorganization
dated October 19, 2022.
The Plan Proponent's financial projections show that the Debtor
will have projected disposable income (as defined by Sec. 1191 (d)
of the Bankruptcy Code) for the period described in s 1191(c)(2) of
approximately $3,000 per month on average which is not including
the payment to unsecured creditors. Note that the Debtor's
projection includes a payment to unsecured creditors of $36,000 per
year as a minimum distribution, which is accounted for as an
expense in the projections. Thus, Debtor is proposing to pay a
minimum of $180,000 over 5 years to general unsecured creditors
based on the projections. Income projections are never going to be
100% accurate because the future is uncertain. Therefore, while
the Debtor is committed to providing all disposable income over the
5-year plan pursuant to the Code, Debtor's income is subject to
fluctuation and Debtor in good faith believes it can pay $36,000
annually to the unsecured creditors.
Twelve-month projected revenue post confirmation is conservatively
estimated based on past performance of the Debtor's pre-petition
and post-petition performance. Debtor's gross revenue projections
for the twelve months following confirmation are $ 360,000.00
rising to $456,245.00 after the 5th year. The net income after
expenses for twelve months following confirmation is projected to
be $33,570.00 per year to $42,890.00 by the end of the 5th year of
the Plan. As revenue increases there will be an increase in
expenses. Thus, the projections take into consideration an
inflation rate of 4% per year.
The Reorganized Debtor reserves the right to modify the treatment
of any Allowed Claim, as provided in Section 1123(a)(4) of the
Bankruptcy Code, at any time after the Effective Date, upon the
consent of the Holder of such Allowed Claim. The Debtor will make
the post-confirmation plan distributions. If any post-confirmation
reporting is required, it will be the responsibility of the
Debtor.
The final Plan payment is expected to be paid on or about November
15, 2027.
Non-priority unsecured creditors holding allowed claims will
receive distributions, which the proponent of this Plan has valued
at approximately 35 cents on the dollar.
Under the Plan, Class 4 Non-priority Unsecured Creditors is
comprised of all Allowed Unsecured Claims not otherwise classified
under the Plan. The total amount of unsecured non-disputed, allowed
claims is approximately $554,383.00. Class 4 consists of the
following: the unsecured claim of JB&B Capital, Claim No. 4, in the
amount of $113,055.62 (Debtor surrendered the collateral
post-petition, which addresses the secured portion of Claim No. 4);
Claim No. 3 of LCA Bank in the amount of $213,442.43; the scheduled
claim of Lease Point Funding Group, in the amount of $107,535.00;
the scheduled claim of Navex Global, in the amount of $2,530.61;
and the scheduled claim of Transworld System in the amount of
$17,819.20. Debtor will pay a total of $180,000 to Class 4
creditors. Payments will be annually commencing on the first
anniversary of the Effective Date and continuing annually
thereafter for 4 additional years (for a total of 5 years). The
Debtor shall distribute to each Holder of an Allowed Class 11 Claim
their Pro Rata Share of $36,000.00 in the aggregate. Class 4 is
impaired.
Post Confirmation, all plan payments will be funded by the ongoing
operations of the Debtor's business and cash flow in accordance
with the projections attached hereto as Exhibit B. The Debtor will
continue to be owned and operated by Dr. Nicholas Angelastro.
A copy of the Plan of Reorganization dated October 21, 2022, is
available at https://bit.ly/3DoYVvA from PacerMonitor.com.
About The A Men of Sarasota
Established in 2006 by Dr. Nicholas J. Angelastro, The A Men of
Sarasota Inc., doing business as Heal Strong, is family owned and
operates as a healthcare service provider in Sarasota, Fla. On the
Web: http://www.healstrongdoc.com/
The A Men of Sarasota filed a petition for relief under Subchapter
V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case
No. 22-02849) on July 15, 2022, listing $100,000 to $500,000 in
assets and $1 million to $10 million in liabilities. Amy Denton
Mayer has been appointed as Subchapter V trustee.
Jake C. Blanchard, Esq., at Blanchard Law, P.A. is the Debtor's
counsel.
ABRAXAS PETROLEUM: Hikes Authorized Common Shares to 150M Shares
----------------------------------------------------------------
Abraxas Petroleum Corporation held a special meeting of the
stockholders at which the stockholders approved an amendment to the
Company's Articles of Incorporation, as amended, to increase the
Company's authorized shares of Common Stock from 20,000,000 shares
to 150,000,000 shares.
In light of approval, the Company caused the Increased Share
Amendment to be filed, via the filing of a Certificate of
Amendment, with the Nevada Secretary of State on Oct. 24, 2022, and
the Nevada Secretary of State accepted the Increased Share
Amendment on Oct. 25, 2022.
About Abraxas
San Antonio, TX-based Abraxas Petroleum Corporation --
www.abraxaspetroleum.com -- is an independent energy company
primarily engaged in the acquisition, exploration, development and
production of oil and gas.
Abraxas Petroleum reported a net loss of $44.57 million for the
year ended Dec. 31, 2021, a net loss of $184.52 million for the
year ended Dec. 31, 2020, and a net loss of $65 million for the
year ended Dec. 31, 2019. As of March 31, 2022, the Company had
$78.13 million in total assets, $17.30 million in total
liabilities, and $60.83 million in total stockholders' equity.
ACER THERAPEUTICS: USPTO Allows Patent Application Covering EDSIVO
------------------------------------------------------------------
Acer Therapeutics Inc. said that the US Patent and Trademark Office
(USPTO) has issued a Notice of Allowance for Acer's patent
application No. 16/930,208, exclusively licensed from Assistance
Publique-Hopitaux de Paris, for claims related to certain methods
of treating vascular Ehlers-Danlos syndrome (vEDS) with celiprolol.
The allowed patent claims in the application titled, "Method of
Providing Celiprolol Therapy to a Patient," include the dosing
regimen in Acer's ongoing Phase 3 DiSCOVER (Decentralized Study of
Celiprolol on vEDS-related Event Reduction) clinical trial of
EDSIVO (celiprolol) for the treatment of patients with
COL3A1-positive vEDS.
"We are extremely pleased to receive this Notice of Allowance from
the USPTO for our method of treatment of vEDS with celiprolol, as
we continue to advance its development for the potential treatment
of COL3A1-positive vEDS patients and other possible indications,"
said Jeff Davis, chief business officer at Acer. "These allowed
method of use claims are based on the higher survival rate observed
in vEDS patients when using a dose titration regimen to reach what
we believe could be the preferred celiprolol dose as previously
described in the 'Long-Term Observational Study' published in the
Journal of American College of Cardiology (JACC). When issued,
this patent will build on the potential regulatory exclusivities
from celiprolol's Orphan Drug Designation and New Chemical Entity
(NCE) status. We look forward to the continued advancement of this
program."
Acer's patent is expected to be issued in Q4 2022 and expire in
2038. If it receives marketing approval for EDSIVO after
completion of the DiSCOVER trial and NDA resubmission, Acer intends
to submit the patent for listing by the FDA in its Approved Drug
Products with Therapeutic Equivalence Evaluations, or Orange Book.
About Acer Therapeutics
Acer Therapeutics Inc. -- http://www.acertx.com-- is a
pharmaceutical company focused on the acquisition, development and
commercialization of therapies for serious rare and
life-threatening diseases with significant unmet medical needs.
Acer's pipeline includes four investigational programs: ACER-001
(sodium phenylbutyrate) for treatment of various inborn errors of
metabolism, including urea cycle disorders (UCDs) and Maple Syrup
Urine Disease (MSUD); ACER-801 (osanetant) for treatment of induced
Vasomotor Symptoms (iVMS); EDSIVO (celiprolol) for treatment of
vascular Ehlers-Danlos syndrome (vEDS) in patients with a confirmed
type III collagen (COL3A1) mutation; and ACER-2820 (emetine), a
host-directed therapy against a variety of viruses, including
cytomegalovirus, zika, dengue, ebola and COVID-19.
Acer Therapeutics reported a net loss of $15.37 million for the
year ended Dec. 31, 2021, compared to a net loss of $22.89 million
for the year ended Dec. 31, 2020. As of June 30, 2022, the Company
had $23.24 million in total assets, $32.03 million in total
liabilities, and a total stockholders' deficit of $8.78 million.
Boston, MA-based BDO USA, LLP, the Company's auditor since 2019,
issued a "going concern" qualification in its report dated March 2,
2022, citing that the Company has recurring losses and negative
cash flows from operations that raise substantial doubt about its
ability to continue as a going concern.
ADAMS 3: Case Summary & One Unsecured Creditor
----------------------------------------------
Debtor: Adams 3, LLC
2406 18th Street, NW
Washington, DC 20009
Business Description: The Debtor is engaged in activities related
to real estate.
Chapter 11 Petition Date: November 1, 2022
Court: United States Bankruptcy Court
District of Columbia
Case No.: 22-00205
Judge: Hon. Elizabeth L. Gunn
Debtor's Counsel: Frank Morris II, Esq.
LAW OFFICE OF FRANK MORRIS II
8201 Corporate Drive
Suite 260
Landover, MD 20785
Tel: 301-731-1000
Fax: 301-731-1206
Email: frankmorrislaw@yahoo.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Napoleon Ibiezugbe as officer.
The Debtor listed DC Tax & Revenue as its only unsecured creditor
holding a claim of $100,000.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/4QKN4BI/Adams_3_LLC__dcbke-22-00205__0001.0.pdf?mcid=tGE4TAMA
ADINA 74 REALTY: Case Summary & Three Unsecured Creditors
---------------------------------------------------------
Debtor: Adina 74 Realty Corp.
6 East 74th Street
New York, NY 10021
Business Description: The Debtor is a Single Asset Real Estate
(as defined in 11 U.S.C. Section 101(51B)).
Chapter 11 Petition Date: November 2, 2022
Court: United States Bankruptcy Court
Southern District of New York
Case No.: 22-11458
Judge: Hon. John P. Mastando III
Debtor's Counsel: Dawn Kirby, Esq.
KIRBY AISNER & CURLEY LLP
700 Post Road
Suite 237
Scarsdale, NY 10583
Tel: (914) 401-9500
Email: dkirby@kacllp.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Ezra Chammah as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's three unsecured creditors is available for
free at PacerMonitor.com at:
https://www.pacermonitor.com/view/ESQSY2Y/Adina_74_Realty_Corp__nysbke-22-11458__0001.0.pdf?mcid=tGE4TAMA
AEARO TECHNOLOGIES: 3M Can't Get New Trial After $50M Verdict
-------------------------------------------------------------
3M was denied a new trial bid after a jury awarded a veteran Green
Beret $50 million in his suit alleging the company's Combat Arms
earplug gave him tinnitis and hearing loss, with a Florida federal
judge ruling Oct. 25, 2022, that the verdict is "substantially
supported" by the trial evidence.
In this member case, Plaintiff Luke Vilsmeyer, a retired Green
Beret, sustained hearing loss and tinnitus after wearing earplugs
designed by defendants in combat training settings. He brought
products liability, negligence, and fraud claims under Washington
law to trial; the jury, in a split verdict, awarded Plaintiff $50
million in compensatory damages on the products liability and
negligence claims but found for Defendants on the fraud claims.
3M Company, Aearo Technologies LLC and other related entities moved
the U.S. District Court for the Northern District of Florida for a
new trial or remittitur under Federal Rule of Civil Procedure 59,
arguing that the damage award was excessive; Plaintiff opposed.
District Judge Roy B. Dalton, Jr., denied the defendants' motion.
He ruled that the jury's award was supported by substantial
evidence and not improperly affected by matters outside the
evidence, so the damages are not excessive and no new trial is
warranted:
* As to Defendants' first arguments that the damages are
excessive because Plaintiff's injuries were purportedly mild and
treatable, the Court rules that the record substantially supports
that Plaintiff's tinnitus in particular is in fact quite severe and
constant, and as Defendants concede, permanent; Plaintiff's
testimony was extremely effective and compelling in demonstrating
the significant emotional impact that tinnitus has had on his life,
particularly on his relationships with his wife and young children
as well as his inability to sleep.
* Next, Defendants argue that the damages award was
inappropriate because Plaintiff's counsel improperly tried the case
as a punitive damages case, even though punitive damages are not
available under Washington law -- specifically, by referencing 9/11
in opening, introducing evidence of Defendants' financial motives,
and arguing in closing that the jury should essentially "send a
message." The Court rules that none of these arguments hold water.
As to the reference to 9/11 in opening, Defendants notably did not
object, and Plaintiff's counsel's argument was not a random
inflammatory comment but rather was logically connected to evidence
elicited about the earplug's architect, Elliott Berger, discussing
the safety of the earplugs with the military shortly after 9/11.
The Court properly instructed the jury that the lawyers' statements
were not evidence and that they must not be influenced by sympathy.
The fact that the jury split on the verdict -- which found for
Plaintiff on the products liability and negligence claims but
rejected the fraud claims -- evinces that the jury did listen to
those instructions and that the award was not the result of
passions inflamed by improper argument but rather careful
consideration.
* Finally, Defendants argue that "comparator" verdicts show
this one is too high. But the Court notes that neither the size of
a verdict nor comparative verdicts are sufficient to overturn an
award, so this argument is inapposite.
The case is Vilsmeyer v. 3M Co., N.D. Fla., No. 7:20-cv-00113,
verdict 3/25/22.
Bryan Aylstock of Aylstock Witkin Kreis & Overholtz, PLLC; Shelley
Hutson of Clark, Love & Hutson; and Christopher Seeger of Seeger
Weiss LLP, represents the plaintiff.
$50-Mil. Verdict
In March 2022, as reported by Bloomberg, U.S. Army veteran Luke
Vilsmeyer was awarded a jury verdict of $50 million against 3M Co.
-- the largest compensatory damages award to date in bellwether
trials over the company's combat earplugs -- following a trial in
the U.S. District Court for the Northern District of Florida.
Luke Vilsmeyer's was the 12th test trial in the massive
consolidated litigation over subsidiary Aearo Technologies LLC's
Combat Arms version 2 earplugs in Floria. Jury verdicts as a
result rose to seven for service members and five for 3M, which has
an appeal pending on key issues.
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.
AIR METHODS: Bank Debt Trades at 33% Discount
---------------------------------------------
Participations in a syndicated loan under which Air Methods Corp is
a borrower were trading in the secondary market around 67
cents-on-the-dollar during the week ended Fri., October 28, 2022,
according to Bloomberg's Evaluated Pricing service data.
The USD1.25 billion facility is a term loan. The loan is scheduled
to mature in April 2024. As of October 28, 2022, USD1.25 billion
of the amount was drawn and outstanding.
Air Methods Corporation is an American privately owned helicopter
operator. The air medical division provides emergency medical
services to over 100,000 patients every year. It operates in 48
states with air medical as its primary business focus.
ALTO MAIPO: Court Dismissed Comunidad de Aguas Adversary Case
-------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware dismisses
the adversary proceeding In re: Alto Maipo SpA, Chapter 11,
Reorganized Debtor. Comunidad de Aguas Canal El Manzano on behalf
of itself and its members and constituents, Gemma Contreras
Bustamante, Christian Becker Matkovic, Maite Birke Abaroa, Bruno
Bercic, Plaintiffs, v. Alto Maipo SpA, Defendant, Adv. Proc. No.
22-50381 (KBO), (Bankr. D. Del.) for forum non conveniens.
At the time of bankruptcy filing, Alto Maipo was completing
construction of two hydroelectric power plants ("Project") outside
of Santiago, Chile. In May 2022 when the Court confirmed the
Debtors' joint plan of reorganization, the Project had reached
commercial operation and was producing energy. The Plan went
effective on May 26, 2022.
Approximately one month later, Comunidad de Aguas Canal El Manzano,
on behalf of itself and its members and constituents
("Plaintiffs"). Of particular importance to this proceeding are two
agreements to which Comunidad and Alto Maipo are parties,
collectively referred to as the "Manzano Contract". The Manzano
Contract was assumed on the Plan's effective date, but the
existence of any contractual defaults and resulting cure amounts
were issues left undecided for later adjudication. Specifically,
the Parties agreed that "the existence of any such defaults and the
required cure shall be resolved by a court, arbitral panel, or any
other judicial or administrative body of competent jurisdiction, as
to which all parties fully reserve all relevant rights and
defenses."
In their Complaint, the Plaintiffs have asserted four counts: first
is a claim for breach of the Manzano Contract; second appears to be
a request for declaratory judgment that Plaintiffs have incurred
damages in an approximate amount of $63 million as a result of Alto
Maipo's alleged breaches of the Manzano Contract and that such
damages remain unpaid; the remaining third and fourth counts are
claims for infringement of the Chilean Constitution, Water Code,
and Environment Law. In addition to the Complaint, each of the
Plaintiffs filed a request for payment of an administrative expense
claim against Alto Maipo
The Plaintiffs assert that the Manzano Contract required Alto Maipo
to build Water Intakes by Dec. 11, 2021 to allow the Comunidad
members continued access to water while Alto Maipo captures it from
the Colorado River for operations. They allege that the Manzano
Contract requires Alto Maipo to maintain the Water Intakes and
guarantee water availability to the Comunidad members in accordance
with their legal water rights during the useful life of the
Project. According to the Complaint, the Water Intakes were to be
built before the Project began operating pursuant to Chilean
Environmental Law, the Project's operating permits and
authorizations, and the Manzano Contract.
In January 2022 — postpetition and before the construction of the
Water Intakes — the Plaintiffs allege that Alto Maipo began
testing the Project's hydropower turbines using water from the
Colorado River. According to the Plaintiffs, the tests impeded
water flow in the river, making it impossible for Comunidad to
capture water and depriving their members of water for at least
eight days. The Plaintiffs also allege that Alto Maipo constructed
a temporary structure to restore water flow but that those efforts
impaired the river's water quality, deprived members of clean and
potable water, and damaged the environment. It is further alleged
that Alto Maipo later obtained its operational permit by falsely
representing to the relevant Chilean government authority that it
complied with all condition precedents to enter into operation
when, in fact, the Water Intakes have not been completed.
Following the turbine tests, the Comunidad unsuccessfully sought
from the Chilean Appellate Court certain relief to prevent Alto
Maipo from taking further actions that would deprive members of
water access. It also pursued an administrative action by filing
petitions before the Chilean Superintendency of Environment and the
Chilean National Electrical Coordinator complaining that Alto Maipo
conducted turbine testing prior to constructing the Water Intakes.
Now, Alto Maipo requests the Court to dismiss the Complaint,
arguing that the Plaintiffs lack standing to assert claims under
applicable Chilean law. Alto Maipo contends that the Manzano
Contract contains an arbitration clause that is valid and
enforceable. Alto Maipo submits that the Court should apply the
doctrine of forum non conveniens so that the claims may be
adjudicated in Chile.
The Court concludes that Chile is an adequate alternative forum.
The Court notes that the Plaintiffs have not argued that Chile is
an inadequate alternative forum. Indeed, the Complaint concedes
that the Plaintiffs are all Chilean citizens and that Alto Maipo is
a special purpose company incorporated under Chilean law with its
operations centered outside Santiago. Moreover, the Court notes
that the Complaint provides much detail on the efforts already
taken by the Plaintiffs to obtain relief in Chilean forums as a
result of the Project and Alto Maipo's post-petition turbine
testing.
Based on the facts alleged in the Complaint, the Court finds it
difficult to understand how it can offer any conveniences to the
Parties, considering that: (1) the Parties are located in Chile;
(2) the Plaintiffs' claims rest upon conduct and harm that occurred
in Chile, (3) arise under Chilean law, and (4) rely upon evidence
and witnesses located in Chile. Moreover, as evidence by the
Plaintiffs' pursuit of remedies following the turbine test, this
Court was not their first choice for assistance on their claims.
The Court also finds that the only fact that ties this proceeding
to the United States is the Debtors' chapter 11 proceedings but
those proceedings will not offer any conveniences to this
litigation. The Debtors' Plan has been confirmed, the Plaintiffs'
claims have passed through unimpaired, and the contested matters
between the Parties once initiated by the Debtors have been
rendered moot. The Court determines that adjudication of the
Plaintiffs' claims is more logical, convenient, efficient, and
appropriate in Chile. Therefore, the Court dismisses this
proceeding for forum non conveniens.
However, the Court does not believe it is procedurally appropriate
to dismiss the Administrative Expense Claims. While it appears
practical to hold in abeyance any reconciliation of the
Administrative Expense Claims until the underlying litigation is
resolved in Chile, the Court is reluctant to dismiss (or disallow)
the claims without a better understanding of the impact it would
have on the Plaintiffs' ability to recover under the Plan in the
event they obtain future damage awards. The Parties are welcome to
request a status conference in Alto Maipo's bankruptcy case to
discuss these issues with the Court at their convenience.
A full-text copy of the Memorandum Order dated Oct. 27, 2022, is
available at https://tinyurl.com/bdfh3sd6 from Leagle.com.
About Alto Maipo
Alto Maipo owns the Alto Maipo Hydroelectric Project, outside
Santiago, Chile, which is currently under construction. The project
comprises two run-of-the-river plants with a combined installed
capacity of 531 megawatts. The run-of-the-river project is a joint
venture between U.S. utility subsidiary AES Gener and Chilean
mining company Antofagasta Minerals (AMSA).
Alto Maipo Delaware LLC and Alto Maipo SpA sought Chapter 11
protection (Bankr. D. Del. Lead Case No. 21-11507) on Nov. 17,
2021. Javier Dib, board president and chief restructuring officer,
signed the petitions. At the time of the filing, Alto Maipo
Delaware LLC estimated between $1 billion and $10 billion in both
assets and liabilities.
The cases are handled by Judge Karen B. Owens.
The Debtors tapped Young Conaway Stargatt & Taylor, LLP and Cleary
Gottlieb Steen & Hamilton LLP as legal counsel; Nelson Contador
Abogados & Consultores SpA as local Chilean counsel; AlixPartners,
LLP as financial advisor; and Lazard Freres & Co. LLC and Lazard
Chile SpA as investment banker. Prime Clerk, LLC, is the claims,
noticing and administrative agent.
APEX SIERRA: Voluntary Chapter 11 Case Summary
----------------------------------------------
Debtor: Apex Sierra Hermosa TX, LP
32 Las Vegas Trail
Fort Worth, TX 76116
Business Description: The Debtor is a Single Asset Real Estate
(as defined in 11 U.S.C. Section 101(51B)).
Chapter 11 Petition Date: November 1, 2022
Court: United States Bankruptcy Court
Northern District of Texas
Case No.: 22-42638
Debtor's Counsel: Eric A. Liepins, Esq.
ERIC A. LIEPINS
12770 Coit Road
Suite 850
Dallas, TX 75251
Tel: 972-991-5591
Email: eric@ealpc.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Aron Puretz as representative of genral
partner.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/3PFHTQY/Apex_Sierra_Hermosa_TX_LP__txnbke-22-42638__0001.0.pdf?mcid=tGE4TAMA
ARTERA SERVICES: Bank Debt Trades at 42% Discount
-------------------------------------------------
Participations in a syndicated loan under which Artera Services LLC
is a borrower were trading in the secondary market around 58
cents-on-the-dollar during the week ended Fri., October 28, 2022,
according to Bloomberg's Evaluated Pricing service data.
The USD135 million facility is a term loan. The loan is scheduled
to mature in March 2026. As of October 28, 2022, the amount was
fully drawn and outstanding.
Artera Services, LLC provides utility line construction services.
The Company offers installation, repair, and maintenance of gas and
electric distribution lines, as well as civil excavation,
feasibility studies, horizontal directional drilling, and pollution
prevention planning services.
ARTERA SERVICES: Hires Kirkland & Ellis for Debt Advice
-------------------------------------------------------
Eliza Ronalds-Hannon of Bloomberg News reports that Artera Services
LLC is working with lawyers at Kirkland & Ellis to explore options
for its more than $2.5 billion debt pile, according to people with
knowledge of the situation, who asked not to be identified because
the matter is private.
The Clayton Dubilier & Rice-backed company, which provides
maintenance and repair services for the gas and electric
industries, has a revolving credit facility due in March 2023. The
company is facing higher liquidity risks given the fast-approaching
maturity and working capital needs for the first half of 2023,
Moody's Investors Service said in an August note.
About Artera Services LLC
Headquartered in Atlanta, Georgia, Artera Services, LLC, is an
independent provider of repair, maintenance, replacement, and
installation services to the distribution and small transmission
segment of the utility industry. The company operates primarily in
the East, South, Southwest, and Midwest regions of the United
States. Its customers are natural gas and electric utilities and
midstream operators. The company generated pro forma revenues of
about $2.4 billion in 2021. Clayton, Dublier & Rice ("CD&R")
acquired the majority ownership of the company in 2018.
ASTRO ONE: Moody's Cuts CFR to Caa1, Outlook Negative
-----------------------------------------------------
Moody's Investors Service downgraded Astro One Acquisition
Corporation's Corporate Family Rating to Caa1 from B3, its
Probability of Default Rating to Caa1-PD from B3-PD, first lien
senior secured term loan to Caa1 from B3 and second lien senior
secured term loan to Caa3 from Caa2. The outlook is negative.
The downgrade reflects Astro One's weakened operating performance
and very high financial leverage driven by macroeconomic pressures
including weaker consumer demand, commodity inflation, ocean
freight, raw materials, and labor costs, resulting in declining
profitability and weakening margins. Free cash flow turned strongly
negative during the first nine months of fiscal year 2022 (ending
June 2022) due to reduced earnings, higher inventory balances and
the first six months interest payment on the new capital structure
following leveraged buyout by Platinum Equity and subsequent
acquisition of Cosmic Pet. Rising interest rates are further
weakening free cash flow. Without a material improvement in
operating performance and meaningful debt reduction, Moody's
expects Astro One's capital structure to become increasingly
unsustainable. Moody's adjusted debt/EBITDA has increased above 11x
as of March 2022, and EBITDA/interest coverage is about 1.5x. As a
result of the current operating environment Astro One's financial
flexibility is diminished. Moody's expects performance to remain
volatile during fiscal year 2023 although with modest improvement
in credit metrics as the company executes cost savings initiatives.
Moody's adjusted debt/EBITDA will likely remain above 10x and free
cash flow generation modestly negative.
Moody's expects weak liquidity over the next twelve months. While
free cash flow will remain pressured over the next several quarters
driven by reduced earnings and working capital investment,
liquidity is supported by modest availability under the $110
million asset-based revolving credit facility. Because the company
has a minimal cash balance of less than $1 million as of March
2022, it is highly reliant on the revolver for liquidity. Moody's
expects free cash flow to be modestly negative in the fiscal year
ending June 2023, improving over time. Astro One's revolving credit
facility is subject to a springing fixed charge coverage ratio that
is triggered if availability is less than the greater of 10% or
line cap of $8.8 million. While cushion will tighten over the next
several quarters, Moody's does not expect the covenant to spring.
There are no upcoming maturities until the revolving credit
facility expires in 2026.
Governance risk considerations are material to the rating action.
The company faces high governance risk reflecting a very aggressive
financial policy with regards to sustained elevated leverage.
Governance risk is further exacerbated by private equity ownership,
which increases the risk of shareholder friendly actions that come
at the expense of creditors including elevated risk of a distressed
exchange. Such risks are key factors in the downgrade and result in
the company's Credit Impact Score moving to CIS-5 from CIS-4 and
the governance IPS to G-5 from G-4
The following ratings/assessments are affected by the action:
Ratings Downgraded:
Issuer: Astro One Acquisition Corporation
Corporate Family Rating, Downgraded to Caa1 from B3
Probability of Default Rating, Downgraded to Caa1-PD from B3-PD
Senior Secured 1st Lien Term Loan, Downgraded to Caa1 (LGD3) from
B3 (LGD3)
Senior Secured 2nd Lien Term Loan, Downgraded to Caa3 (LGD5) from
Caa2 (LGD6)
Outlook Actions:
Issuer: Astro One Acquisition Corporation
Outlook, Changed To Negative From Stable
RATINGS RATIONALE
Astro One's Caa1 CFR reflects Moody's expectation that demand for
the company's products will weaken over the next year due to the
economic slowdown, the company's aggressive financial policy with
very high financial leverage, exposure to rising interest rates and
negative free cash flow that is creating high revolver reliance to
provide liquidity. Demand for Astro's products, which are mostly
discretionary in nature, is softening, as consumers are faced with
a high inflationary environment and new pet adoptions are slowing,
returning to pre-pandemic levels. The rating is also constrained by
the company's considerable concentration of revenues with its
largest customers. Moody's adjusted debt/EBITDA has deteriorated to
above 11x as of March 2022. While some recovery in earnings is
anticipated over the next 12 months as the company executes a
number of cost saving initiatives, credit metrics will remain weak.
The credit challenges are partially balanced by Astro One's solid
market position within the durable pet products sector, maintaining
leading market positions in hard goods segments (kennels, food
storage, feeding & watering), domestic manufacturing and vertical
integration, including in-house resin production capabilities.
Despite macro pressures, Moody's believes consumable categories
such as toys and treats & chews will continue to drive demand,
partially mitigating the demand slowdown in more discretionary
categories. Earnings pressure will lead to negative free cash
generation and limit the ability to reduce debt/EBITDA, which will
likely remain above 10x into fiscal year 2023.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The negative outlook reflects the headwinds Astro One faces in
reversing the meaningful deterioration in profitability, cash flow
and credit metrics given the inflationary and demand pressures the
company is experiencing. The negative outlook also reflects Moody's
view that without a meaningful recovery in operating performance
and cash flow, Astro One's capital structure is unsustainable, and
that risk of a distressed exchange or other debt restructuring is
elevated.
The ratings could be upgraded if the company sustains positive
organic revenue growth with a stable to higher EBITDA margin and
demonstrates a financial policy that sustains debt/EBITDA below 8x.
Improved liquidity through consistent positive free cash flow and
ample availability under its revolving credit facility would also
be necessary for an upgrade.
The ratings could be downgraded if the company's operating
performance does not improve over the next 12 months, if liquidity
weakens for any reason, or the likelihood of a distressed exchange
or other default increases further. The ratings could also be
downgraded if the company peruses debt financed acquisitions or
cash distributions to shareholders, or if leverage remains
elevated.
The principal methodology used in these ratings was Consumer
Durables published in September 2021.
Astro One Acquisition Corporation (founded in 1959 as Doskocil
Manufacturing, Inc., Petmate, headquartered in Arlington, TX) is a
manufacturer of various durable pet supplies products in the United
States, with a diversified product portfolio such as hard goods
(kennels, feeding & watering, food storage), toys, outdoor/soft
goods (shelters, bedding, wire kennels, collars & leashes) and
others. Products are sold across multiple channels such as
e-commerce, mass merchandisers, specialty retail, warehouse, and
others. Astro One was acquired by private equity firm Platinum
Equity in September 2021 and the company purchased Cosmic Pet in
October 2021. Annual revenues pro forma for the Cosmic Pet
acquisition are approximately $520 million.
ASURION LLC: Bank Debt Trades at 30.5% Discount
-----------------------------------------------
Participations in a syndicated loan under which Asurion LLC is a
borrower were trading in the secondary market around 69.5
cents-on-the-dollar during the week ended Fri., October 28, 2022,
according to Bloomberg's Evaluated Pricing service data.
The USD2.675 billion facility is a term loan. The loan is
scheduled to mature in January 2029. As of October 28, 2022, the
amount was fully drawn and outstanding.
Asurion, LLC, is a privately held company based in Nashville,
Tennessee, that provides insurance for smartphones, tablets,
consumer electronics, appliances, satellite receivers and jewelry.
AVAYA HOLDINGS: $350M Bank Debt Trades at 37% Discount
------------------------------------------------------
Participations in a syndicated loan under which Avaya Holdings Corp
is a borrower were trading in the secondary market around 63.4
cents-on-the-dollar during the week ended Fri., October 28, 2022,
according to Bloomberg's Evaluated Pricing service data.
The USD350 million facility is a term loan. The loan is scheduled
to mature in December 2027. As of October 28, 2022, the amount
was fully drawn and outstanding.
About Avaya Holdings Corp.
Avaya Holdings Corp. (NYSE: AVYA) -- http://www.avaya.com/-- is an
American multinational technology company headquartered in Durham,
North Carolina, that specializes in cloud communications and
workstream collaboration solutions. Avaya says it is shaping
what's next for the future of work, with innovation and
partnerships that deliver game-changing business benefits.
Avaya filed for bankruptcy protection in January 2017 saddled with
$6.3 billion in debt.
On July 12, 2022, Avaya completed a $250 million exchangeable notes
offering and raised an additional $350 million through a term loan
add-on.
The Wall Street Journal reported in August 2022 that Avaya Holdings
Corp. is working with legal and financial advisers to evaluate the
company's options following an earnings miss that tanked prices of
a $600 million debt deal completed in June. Avaya is being advised
by law firm Kirkland & Ellis LLP and turnaround adviser
AlixPartners LLP as the company contends with blowback from credit
markets, according to The Journal's sources.
* * *
As reported by the TCR on Aug. 15, 2022, S&P Global Ratings lowered
its issuer credit rating on Avaya Holdings Corp. to 'CCC-' from
'CCC'. The negative outlook reflects that S&P could lower its
rating on Avaya if it concludes a distressed restructuring or
payment default are a virtual certainty.
Also in August 2022, Moody's Investors Service downgraded the
Corporate Family Rating of Avaya Holdings Corp. to Caa2 from B3.
Moody's said Avaya's Caa2 CFR reflects the Company's unsustainably
high financial leverage, sustained cash burn, and increased near
term performance challenges that may worsen substantially as
customers reassess Avaya's financial standing.
AVAYA HOLDINGS: Robert Theis Quits as Director
----------------------------------------------
Robert Theis notified the Board of Directors of Avaya Holdings
Corp. of his intent to resign from the Board in order to focus on
his other commitments as general partner of World Innovation Lab
and lead independent director of RingCentral, Inc.
Avaya stated the resignation is not due to any disagreement between
Mr. Theis and the Company on any matter relating to the Company's
operations, policies, or practices. Mr. Theis was appointed by
RingCentral as RingCentral's designee to the Company's Board
pursuant to the terms of the Investor Rights Agreement, dated Oct.
31, 2019, by and between the Company and RingCentral. RingCentral
has informed the Company that it intends to appoint a new designee
to the Company's Board in Mr. Theis's place.
About Avaya Holdings
Avaya offers digital communications products, solutions and
services for businesses of all sizes delivering its technology
predominantly through software and services.
Avaya reported a net loss of $13 million for the year ended Sept.
30, 2021, a net loss of $680 million for the year ended Sept. 30,
2020, and a net loss of $671 million for the year ended Sept. 30,
2019.
* * *
As reported by the TCR on Aug. 15, 2022, S&P Global Ratings lowered
its issuer credit rating on Avaya Holdings Corp. to 'CCC-' from
'CCC'. The negative outlook reflects that S&P could lower its
rating on Avaya if it concludes a distressed restructuring or
payment default are a virtual certainty.
Also in August 2022, Moody's Investors Service downgraded the
Corporate Family Rating of Avaya Holdings Corp. to Caa2 from B3.
Moody's said Avaya's Caa2 CFR reflects the Company's unsustainably
high financial leverage, sustained cash burn, and increased near
term performance challenges that may worsen substantially as
customers reassess Avaya's financial standing.
BAY CIRCLE: Thakkar Lacks Standing to Appeal Bankruptcy Order
-------------------------------------------------------------
In the appealed case In Re: BAY CIRCLE PROPERTY, LLC, Debtor.
CHITTRANJAN THAKKAR, Plaintiff-Appellant, v. GOOD GATEWAY, LLC, SEG
GATEWAY, LLC, CLAY TOWNSEND, Defendants-Appellees, Case No.
22-10521, (11th Cir.), the U.S. Court of Appeals for the Eleventh
Circuit affirms the district court's determination that Chittranjan
Thakkar did not constitute a "person aggrieved" by the bankruptcy
court's order denying his motion for sanctions and thus lacked
standing to appeal said order.
Chittranjan K. Thakkar is the manager and member of five limited
liability companies that are in bankruptcy in the Northern District
of Georgia pursuant to petitions for relief he filed on May 4,
2015.
Several years before Thakkar filed the petitions, Good Gateway LLC
obtained judgments in the Circuit Court of Orange County, Florida,
in the amount of $2.5 million, $12 million, and $15.3 million
against Thakkar and Nilhan Developers LLC — the debtor in one of
the Chapter 11 cases pending in the Northern District of Georgia.
Unable to obtain satisfaction of the judgments against Thakkar,
Gateway moved the Circuit Court for a charging order against
Thakkar's interest in Nilhan — which would enable it to obtain
any proceeds Thakkar might be entitled to receive as a member of
the LLC. Gateway then filed a notice stating that the Circuit Court
would hear its motion for a charging order on Sept. 18, 2019.
Meanwhile, on Sept. 6, 2019, the Bankruptcy Court for the Northern
District of Georgia issued an order directing Thakkar and Gateway
to mediate (before a bankruptcy judge not assigned to the case) the
merits of Gateway's motion for a charging order. Less than two
weeks after the Mediation Order was granted — the Circuit Court
held a hearing on Gateway's motion for the charging order and
subsequently granted the motion. Thakkar then moved for sanctions
against Gateway in bankruptcy court, arguing that Gateway violated
the automatic stay and Mediation Order by obtaining the charging
order, but the bankruptcy court denied Thakkar's motion.
The bankruptcy court explained that because Thakkar was not the
Debtor, Nilhan, a creditor, or an equity owner of the Debtor, he
was not an aggrieved party entitled to seek relief under 11 U.S.C.
Section 362(k) and therefore lacked standing to assert a claim
against Gateway for violating the automatic stay or the Mediation
Order. The Court also reasoned that Thakkar's alleged grievance —
that he incurred fees as a result of the charging orders — did
not fall within the zone of interests the automatic stay was
designed to protect.
Thakkar appealed the bankruptcy court's decision to the district
court. The district court agreed with the bankruptcy court that
Thakkar lacked standing and dismissed Thakkar's appeal for lack of
subject-matter jurisdiction to seek relief under Section 362(k) of
the Bankruptcy Code. He now appeals the district court's decision
to this Court.
The Eleventh Circuit citing the case In re Ernie Haire Ford, Inc.,
764 F.3d 1321, 1325 (11th Cir. 2014), the explains that "a party is
not "aggrieved" under the doctrine when the bankruptcy court's
order being appealed causes only indirect harm to the party's
asserted interest." Assuming, arguendo, that Thakkar is a member
and manager of Nilhan, the Court explains that he had at most an
indirect interest in the bankruptcy court's order denying his
motion for sanctions because he was not a party to the bankruptcy
proceedings involving Nilhan. The Court further explains that
Thakkar's interest as a member of Nilhan did not equate to an
ownership interest in the property of Nilhan under state law, nor
did his ability to participate in the bankruptcy proceedings give
him standing to appeal the bankruptcy court's order.
The Court determines that Thakkar's status as an equity holder in
Nilhan did not convert his interest in the bankruptcy court's order
denying his motion from an indirect interest to a direct interest
because no guarantee existed that Thakkar would receive any surplus
remaining even if Nilhan satisfied its obligations to its
creditors.
A full-text copy of the Decision dated Oct. 28, 2022, is available
at https://tinyurl.com/23dy6sp8 from Leagle.com.
About Bay Circle Properties, et al.
Bay Circle Properties, LLC, DCT Systems Group, LLC, Sugarloaf
Centre, LLC, Nilhan Developers, LLC, and NRCT, LLC, owned 16
different real properties including significant undeveloped
acreage. The properties included office and warehouse buildings,
retail shopping centers and free standing single tenant buildings.
Bay Circle Properties, et al., filed Chapter 11 bankruptcy
petitions (Bankr. N.D. Ga. Case Nos. 15-58440 to 15-58444) on May
4, 2015. The Chapter 11 cases were jointly administered. In the
petition signed by Chuck Thakkar, manager, Bay Circle estimated $1
million to $10 million in assets and liabilities.
The Debtors tapped John A. Christy, Esq., J. Carole Thompson
Hord,Esq., and Jonathan A. Akins, Esq., at Schreeder, Wheeler &
Flint, LLP, as bankruptcy attorneys. The Debtors engaged RG Real
Estate, Inc., as real estate broker.
Ronald L. Glass was appointed as Chapter 11 trustee for the
Debtors. The trustee tapped Morris, Manning & Martin, LLP as his
bankruptcy counsel; GlassRatner Advisory & Capital Group, LLC as
his financial advisor; and Nelson Mullins Riley & Scarborough LLP
as special counsel.
On April 8, 2020, the Chapter 11 Trustee filed a motion to convert
the Bay Circle case to one under Chapter 7 (Case No. 15-58440).
The motion was granted, and the case converted to Chapter 7 on May
5, 2020). John Lewis, Jr. was thereafter appointed as Chapter 7
Trustee.
BED BAD & BEYOND: Appoints Sue Gove as President, CEO
-----------------------------------------------------
Bed Bath & Beyond Inc. has appointed Sue Gove as president and
chief executive officer. Since June 2022, Ms. Gove has served as
interim CEO. The appointment was unanimously approved by Bed Bath
& Beyond Inc.'s Board of Directors. Ms. Gove will continue to
serve on the Company's board.
"We are pleased to announce the appointment of Sue as Chief
Executive Officer. Sue is the best person to serve at the helm of
Bed Bath & Beyond and continue leading the Company," said Harriet
Edelman, Independent Chair of Bed Bath & Beyond Inc.'s Board of
Directors. "During her tenure as Interim CEO, Sue took
consequential actions to increase liquidity and establish the
groundwork to improve customer loyalty, traffic, and market share.
Her intense focus on cash, and expertise in managing working
capital and liquidity are matched by a great operating mind and
further complemented by a new leadership team that brings deep
merchant, omni, and digital expertise in modern retailing. A
strong team builder and hands-on leader, Sue has earned the trust
of associates across headquarters, stores, and operations and is
working alongside our two Brand Presidents to support our important
supplier community. On behalf of the Board of Directors and Bed
Bath & Beyond's leadership and associate teams, we congratulate Sue
and are confident that her unique mix of talent, experience, and
drive is best suited to deliver improved growth, profitability and
shareholder returns."
Sue Gove, Bed Bath & Beyond's president and CEO said, "I look
forward to continuing our important work alongside our highly
engaged management team and Board as CEO. At Bed Bath & Beyond, we
have never been more strategically and culturally focused, and I
remain dedicated to executing on our back-to-basics philosophy,
accelerating our performance, and focusing on financial returns. I
am also pleased with the completion of our ATM Program, and
possible launch of a new offering program, to further support and
drive our strategic imperatives. To ensure our customers have
access to an assortment of compelling brands, we are engaging our
valued supplier community in new ways to strengthen relationships
and foster collaboration. I am energized by the initiatives
underway to provide our customers with an exceptional shopping
experience, easily accessible products and compelling values across
our Bed Bath & Beyond, buybuy BABY and Harmon brands. We have a
significant opportunity ahead and we intend to regain our dominance
as a preferred shopping destination."
Under Ms. Gove's leadership, the Company will continue to execute
its strategic plan, announced on Aug. 31, 2022, with a priority on
strengthening its financial positioning, increasing customer
engagement, driving traffic, and recapturing market share.
Key actions under Ms. Gove's leadership (as previously announced):
* Securing new financing, including an upsized $1.13 billion
asset-backed revolving credit facility and a $375 million
"first-in-last-out" facility ("FILO facility").
* Launch and completion of the Company's 12 million share
At-the-Market Offering program.
* Authorization of a new $150 million At-the-Market Offering
program.
* Improving the Company's cost structure through targeted
expense reduction actions, real estate optimization, and
reductions in capital expenditures.
* Initiating an exchange offer for the Company's outstanding
senior notes.
* Rebalancing the Bed Bath & Beyond assortment and inventory
positioning to reflect customer preference by increasing
investments in popular National Brands and exiting a third
of the Company's Owned Brands.
* Accelerating strategic plans at buybuy BABY to unlock greater
value, organically.
* Growing the Company's cross banner Welcome Rewards loyalty
program to 8 million members.
* Realigning the Company's organizational structure to better
support strategic priorities, including the creation of Brand
President roles for the Bed Bath & Beyond and buybuy BABY
banners.
* Supporting supplier partners and strengthening relationships,
including the Company's first supplier summit, that took
place on Oct. 26, 2022.
According to the Company, it is expected that Ms. Gove will enter
into an employment agreement with the Company in connection with
her appointment, which will be filed supplementally. There is no
arrangement or understanding between Ms. Gove and any other person
pursuant to which Ms. Gove has been appointed as president and
chief executive officer. There are no family relationships between
Ms. Gove and any of the Company's other directors or executive
officers, and Ms. Gove is not a party to any transaction, or any
proposed transaction, required to be disclosed pursuant to Item
404(a) of Regulation S-K.
About Bed Bath & Beyond
Bed Bath & Beyond Inc. and subsidiaries is an omnichannel retailer
selling a wide assortment of merchandise in the Home, Baby, Beauty
& Wellness markets and operate under the names Bed Bath & Beyond,
buybuy BABY, and Harmon, Harmon Face Values. The Company also
operates Decorist, an online interior design platform that provides
personalized home design services.
The Company reported a net loss of $559.62 million for the fiscal
year ended Feb. 26, 2022, a net loss of $150.77 million for the
year ended Feb. 27, 2021, and a net loss of $613.82 million for the
year ended Feb. 29, 2020.
* * *
As reported by the TCR on Oct. 20, 2022, S&P Global Ratings lowered
its issuer credit rating on Union, N.J.-based specialty home
retailer Bed Bath & Beyond Inc. (BBBY) to 'CC' from 'CCC'. S&P
said, "We view the proposed exchanges as distressed." BBBY has
announced exchange offers for its outstanding unsecured notes due
2024, 2034, and 2044.
Also in October 2022, Moody's Investors Service downgraded Bed Bath
& Beyond Inc.'s corporate family rating to Ca from Caa2. "The
downgrades reflects governance considerations which include the
company's announcement that it may pursue liability
transactions which Moody's would likely view as a distressed
exchange to address its $284 million of senior unsecured notes due
in August 2024 in light of the continuing pressures on Bed Bath's
operations and credit metrics" said Christina Boni, senior vice
president.
BIOPLAN USA: Bank Debt Trades at 31% Discount
---------------------------------------------
Participations in a syndicated loan under which Bioplan USA Inc is
a borrower were trading in the secondary market around 69
cents-on-the-dollar during the week ended Fri., October 28, 2022,
according to Bloomberg's Evaluated Pricing service data.
The USD246.9 million facility is a PIK term loan. The loan is
scheduled to mature in December 2023. As of October 28, 2022, the
amount was fully drawn and outstanding.
Bioplan USA, Inc., provides sampling and packaging machinery
products.
BLOOMIN' BRANDS: Moody's Affirms 'Ba3' CFR, Outlook Remains Stable
------------------------------------------------------------------
Moody's Investors Service upgraded Bloomin' Brands, Inc.'s
speculative grade liquidity rating (SGL) to SGL-1 from SGL-2. At
the same time, Moody's affirmed all the company's ratings,
including the Ba3 corporate family rating, Ba3-PD probability of
default rating, Ba1 senior secured bank credit facility, and B1
senior unsecured notes. The outlook remains stable.
The upgrade of the speculative grade liquidity rating reflects
Bloomin' Brands' very good liquidity, supported by around $91
million of cash as of September 2022, nearly $600 million of excess
availability under its $1 billion revolving credit facility, lack
of near-term debt maturities, and Moody's expectation for solid
positive free cash flow and ample covenant cushion.
The affirmation of the Ba3 CFR and stable outlook reflect Bloomin's
improved credit metrics stemming from revenue growth, significant
margin expansion and debt reduction over the past two years;
providing the company with significant cushion to navigate high
inflation and an increasingly challenging consumer spending
environment over the next 12-18 months.
Upgrades:
Issuer: Bloomin' Brands, Inc.
Speculative Grade Liquidity Rating, Upgraded to SGL-1 from SGL-2
Affirmations:
Issuer: Bloomin' Brands, Inc.
Corporate Family Rating, Affirmed Ba3
Probability of Default Rating, Affirmed Ba3-PD
Senior Secured Bank Credit Facility, Affirmed Ba1 (LGD2)
Senior Unsecured Regular Bond/Debenture, Affirmed B1 (LGD5)
Outlook Actions:
Issuer: Bloomin' Brands, Inc.
Outlook, Remains Stable
RATINGS RATIONALE
Bloomin' Brands' Ba3 CFR benefits from its high level of brand
awareness of its four brands, a greater focus on off-premises,
To-Go, and third-party delivery services and large and diversified
asset base with 1,462 restaurants spread across the US and about
20% located internationally. Improved operating performance,
margins, and debt reduction have resulted in stronger credit
metrics, with Moody's lease adjusted debt/EBITDA improving to
around 3.2x for the twelve months ended September 25, 2022, down
from 9.4x at the fiscal year ended 2020. EBIT/interest improved to
around 2.6x from 0.1x over the same period. Bloomin' Brands' credit
profile is constrained by industry wide cost inflation that, when
coupled with increasing macroeconomic pressure that could temper
consumer spending on food away from home and thus profit and margin
growth and over the near term. Bloomin' Brands' sizeable
concentration of sales within the casual steak category increases
vulnerability to consumer spending patterns within the category.
The stable outlook reflects Bloomin' Brands' improved credit
metrics stemming from revenue growth, significant margin expansion
and debt reduction over the past two years; providing the company
with significant cushion to navigate high inflation and an
increasingly challenging consumer spending environment over the
next 12-18 months.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings could be upgraded should the company demonstrate the
ability to navigate the challenging cost and consumer spending
environment while maintaining solid credit metrics, including
Moody's debt to EBITDA sustained below 4.0 times and EBIT coverage
of interest of over 2.75 times. A higher rating would also require
maintaining at least good liquidity and a balanced financial
policy.
Ratings could be downgraded if operating performance, liquidity or
credit metrics materially weakened such that Moody's debt to EBITDA
exceeded 4.75 times or EBIT coverage of interest fell below 1.5
times on a sustained basis. In addition, in the event the
company's convertible notes are converted or repaid, the loss of
junior support in the capital structure could result in a downgrade
of the senior secured revolving credit facility and senior
unsecured notes.
Bloomin' Brands owns and operates a diversified base of casual
dining concepts which include Outback Steakhouse, Carrabba's
Italian Grill, Bonefish Grill, and Fleming's Prime Steakhouse and
Wine Bar. Revenue was around $4.4 billion for the LTM period ending
September 25, 2022.
The principal methodology used in these ratings was Restaurants
published in August 2021.
BLUE CHIP: $4.1M Sale of Birmingham Properties to Cameron LR Okayed
-------------------------------------------------------------------
Judge Tamara O. Mitchell of the U.S. Bankruptcy Court for the
Northern District of Alabama, Southern Division, authorized Blue
Chip Hotels Assets Group Birmingham East, LLC's private sale of its
interest in USA Economy Lodge located at 7941 & 7931 Crestwood
Blvd., in Birmingham, Alabama 35210, 207 units, to Cameron LR
Development, LLC, for $4.1 million.
The Debtor will remit sufficient monies to its attorney of record
to pay all outstanding unsecured and priority claims in full in the
estimated amount of $165,000 (with the exception of money owed to
the members of the LLC, Hasmukhbhai Patel and Nilesh Mehta), and
sufficient funds to pay all administrative expenses, in particular
those owed to the SubChapter V Trustee, Steven Altmann, which are
estimated to be $6,000.
Furthermore, the Debtor must file a motion to disburse said funds
and a motion to dismiss the case.
This is a strict compliance order and in the event that the
conditions set out are not met, the case will be converted to
Chapter 7.
About Blue Chip Hotels Assets Group
Birmingham East LLC
Blue Chip Hotels Assets Group Birmingham East, LLC is part of the
hotel and motel industry. The company is headquartered in
Irondale, Ala.
Blue Chip Hotels filed its voluntary petition for Chapter 11
protection (Bankr. N.D. Ala. Case No. 21-02685) on Nov. 6, 2021,
listing as much as $10 million in both assets and liabilities.
Nilesh Mehta, managing member of Blue Chip Hotels, signed the
petition.
Judge Tamara O. Mitchell presides over the case.
C. Taylor Crockett, Esq., at C. Taylor Crockett, P.C. represents
the Debtor as legal counsel.
BOARDRIDERS INC: Bank Debt Trades at 44% Discount
-------------------------------------------------
Participations in a syndicated loan under which Boardriders Inc is
a borrower were trading in the secondary market around 56
cents-on-the-dollar during the week ended Fri., October 28, 2022,
according to Bloomberg's Evaluated Pricing service data.
The USD450 million facility is a term loan. The loan is scheduled
to mature in April 2024. As of October 28, 2022, the amount was
fully drawn and outstanding.
Boardriders -- https://www.boardriders.com/ -- is an action sports
and lifestyle company that designs, produces and distributes
branded apparel, footwear and accessories for boardriders around
the world.
BORREGO COMMUNITY: Committee Taps Pachulski as Legal Counsel
------------------------------------------------------------
The official unsecured creditors' committee appointed in the
Chapter 11 case of Borrego Community Health Foundation seeks
approval from the U.S. Bankruptcy Court for the Southern District
of California to employ Pachulski Stang Ziehl & Jones, LLP as its
counsel.
The firm will render these services:
(a) assist, advise and represent the committee in its
consultations with the Debtor regarding the administration of the
Debtor's Chapter 11 case;
(b) assist, advise and represent the committee with respect to
the Debtor's retention of professionals and advisors in connection
with the Debtor's business and this case;
(c) assist, advise and represent the committee in analyzing
the Debtor's assets and liabilities, investigate the extent and
validity of liens and participate in and review any proposed asset
sales, any asset dispositions, financing arrangements and cash
collateral stipulations or proceedings;
(d) assist, advise and represent the committee in any manner
relevant to reviewing and determining the Debtor's rights and
obligations under leases and other executory contracts;
(e) assist, advise and represent the committee in
investigating the acts, conduct, assets, liabilities and financial
condition of the Debtor, its operations and the desirability of the
continuance of any portion of those operations, and any other
matters relevant to this case or to the formulation of a plan;
(f) assist, advise and represent the committee in connection
with any sale of the Debtor's assets;
(g) assist, advise and represent the committee in its analysis
of and any objection to any disclosure statement;
(h) assist, advise and represent the committee in its
participation in the negotiation, formulation, or objection to any
plan of liquidation or reorganization;
(j) assist, advise and represent the committee in
understanding its powers and its duties under the Bankruptcy Code
and the Bankruptcy Rules and in performing other services as are in
the interests of those represented by the committee;
(i) assist, advise and represent the committee in the
evaluation of claims and on any litigation matters; and
(k) provide such other services to the committee as may be
necessary in this case.
The hourly rates of the firm's counsel and staff are as follows:
Jeffrey N. Pomerantz $1,445
Debra I. Grassgreen $1,425
Teddy M. Kapur $975
Steven W. Golden $775
Beth D. Dassa $495
Jeffrey Pomerantz, Esq., an attorney at Pachulski Stang Ziehl &
Jones, 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:
Jeffrey N. Pomerantz, Esq.
Teddy M. Kapur, Esq.
Steven W. Golden, Esq.
Pachulski Stang Ziehl & Jones LLP
10100 Santa Monica Blvd., 13th Floor
Los Angeles, CA 90067
Telephone: (310) 277-6910
Facsimile: (310) 201-0760
Email: jpomerantz@pszjlaw.com
tkapur@pszjlaw.com
sgolden@pszjlaw.com
About Borrego Community Health Foundation
Borrego Community Health Foundation offers, among other services,
comprehensive primary care, pediatric care, urgent care, behavioral
health services, dental services, specialty care, transgender
health, women's health, prenatal care, veteran's health, and
chiropractic services. Borrego Community is a non-profit public
charity, tax-exempt under section 501(c)(3) of the Internal Revenue
Code. The Foundation, as of Sept. 12, 2022, had 24 brick-and-mortar
sites including administrative sites, two pharmacies and six mobile
units covering a service area consisting of a 250-mile corridor on
the eastern side of San Diego and Riverside Counties, Calif.
Borrego Community Health Foundation sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. S.D. Calif. Case No.
22-02384) on Sept. 12, 2022, with between $50 million and $100
million in both assets and liabilities. Isaac Lee, chief
restructuring officer, signed the petition.
Judge Laura S. Taylor oversees the case.
The Debtor tapped Tania M. Moyron, Esq., at Dentons US, LLP as
bankruptcy counsel and Hooper Lundy & Bookman, P.C. as special
counsel. Kurtzman Carson Consultants, LLC is the Debtor's claims
and noticing agent.
Jacob Nathan Rubin, the patient care ombudsman appointed in the
Debtor's case, tapped Levene Neale Bender Yoo & Golubchik, LLP as
bankruptcy counsel and Dr. Tim Stacy DNP, ACNP-BC as consultant.
On Sept. 26, 2022, the U.S. Trustee appointed an official unsecured
creditors' committee in this Chapter 11 case. Pachulski Stang Ziehl
& Jones, LLP serves as the committee's counsel.
BW NHHC HOLDCO: $185M Bank Debt Trades at 43% Discount
------------------------------------------------------
Participations in a syndicated loan under which BW NHHC Holdco Inc
is a borrower were trading in the secondary market around 56.9
cents-on-the-dollar during the week ended Fri., October 28, 2022,
according to Bloomberg's Evaluated Pricing service data.
The USD185 million facility is a term loan. The loan is scheduled
to mature in November 2025. As of October 28, 2022, the amount was
fully drawn and outstanding.
BN NHHC Holdco Inc provides outpatient healthcare services.
BW NHHC HOLDCO: $660M Bank Debt Trades at 37% Discount
------------------------------------------------------
Participations in a syndicated loan under which BW NHHC Holdco Inc
is a borrower were trading in the secondary market around 62.715
cents-on-the-dollar during the week ended Fri., October 28, 2022,
according to Bloomberg's Evaluated Pricing service data.
The US$660 million facility is a term loan. The loan is scheduled
to mature in May 2025. As of October 28, 2022, the amount was
fully drawn and outstanding.
BN NHHC Holdco Inc provides outpatient healthcare services.
BW NHHC HOLDCO: Bank Debt Trades at 44% Discount
------------------------------------------------
Participations in a syndicated loan under which BW NHHC Holdco Inc
is a borrower were trading in the secondary market around 55.7
cents-on-the-dollar during the week ended Fri., October 28, 2022,
according to Bloomberg's Evaluated Pricing service data.
The USD195 million facility is a term loan. The loan is scheduled
to mature in May 2026. As of October 28, 2022, USD10 million of
the amount was drawn and outstanding.
BN NHHC Holdco Inc provides outpatient healthcare services.
CANOPY GROWTH: To Fast Track Entry Into U.S. Cannabis Market
------------------------------------------------------------
Canopy Growth Corporation announced a strategy to accelerate its
entry into the U.S. cannabis industry and unleash the value of its
full U.S. cannabis ecosystem through the creation of a new
U.S.-domiciled holding company, Canopy USA, LLC and the execution
of a deliberate and highly-structured process. Canopy USA will
hold the Company's U.S. cannabis investments, which will enable it
to exercise rights to acquire Acreage, Wana and Jetty.
"As the growth of the U.S. cannabis market continues rapidly at the
state level, this strategy enables us to take control of our own
destiny and capitalize on the once-in-a-generation opportunity in
the largest cannabis market in the world," said David Klein, chief
executive officer of Canopy Growth Corporation. "We expect to
unleash the full power of Canopy's scalable and ideally-positioned
U.S. cannabis ecosystem to unlock potential expansion
opportunities. This strategy and positioning are true
differentiators, which we expect to enable our investors and brands
to realize value in the near term while positioning Canopy for
profitable growth and a fast start upon U.S. federal
permissibility."
Strategic Highlights
* Fast-tracks entry into the world's largest and fastest growing
cannabis market: The U.S. is projected to be an over $50 billion
market opportunity, and this strategy aims to unlock the ability to
capture share and return on investments made to date. Through
these "stepping stone" transactions, Canopy will be strategically
repositioned to capitalize on the benefits of complete ownership
and control of its U.S. THC portfolio of assets upon U.S. federal
permissibility.
* Establishes industry-leading, premium-focused brand
powerhouse: Canopy USA's portfolio includes some of the most
recognized, iconic cannabis brands in the U.S. that the Company
believes are ideally positioned in the fastest growing categories,
such as edibles, vapes, and flower. Canopy USA is expected to
leverage the best of each brand's offerings to accelerate growth
and market expansion as key states across the country continue to
allow recreational cannabis usage, realizing value in the near
term.
* Highlights the value of Canopy's U.S. THC investments: Canopy
and Canopy USA, collectively, are expected to rank among the top
cannabis companies in North America by revenue. With a protective
layer in place for Canopy's core businesses, including its Canadian
and international cannabis operations, STORZ & BICKEL, BioSteel,
and This Works, Canopy is expected to consolidate the financial
performance of Canopy USA in accordance with U.S. GAAP, enabling
Canopy to highlight the value of its U.S. THC assets to investors.
* Financial benefit via revenue and cost synergies within Canopy
USA and across Canopy: The consolidation of U.S. cannabis assets is
expected to generate revenue and cost synergies by leveraging the
brands, routes to market, and operations of the full U.S. cannabis
ecosystem.
Canopy's U.S. Cannabis Ecosystem
Canopy's U.S. cannabis ecosystem has an established presence across
large-scale and rapidly developing adult-use markets.
Collectively, this footprint currently spans 21 states: Arizona,
Arkansas, California, Colorado, Connecticut, Florida, Illinois,
Maine, Maryland, Massachusetts, Michigan, Missouri, Nevada, New
Hampshire, New Jersey, New Mexico, New York, Pennsylvania, Ohio,
Oklahoma, and Oregon.
Canopy USA will have interests in the following assets, among
others:
* Acreage – The shares to be acquired upon the exercise of the
option to acquire approximately 70% of the total shares of Acreage
Holdings, Inc. at a fixed share exchange ratio of 0.3048 of a
common share of the Company, as well as an option to purchase the
remaining approximately 30% on a floating basis in order to own
100% of Acreage. A leading vertically integrated multi-state
cannabis operator, Acreage has its main operations in densely
populated states across the Northeast including New Jersey and New
York. Through its well-known national retail brand, The Botanist,
Acreage engages U.S. cannabis consumers and delivers a range of
award-winning products through The Botanist brand, and a portfolio
of high-impact, quality brands like Superflux, as well as the Prime
medical brand in Pennsylvania, and the Innocent brand in Illinois
among others.
* Wana – The option to acquire 100% of the membership
interests of Mountain High Products, LLC, Wana Wellness, LLC and
The Cima Group, LLC, a leading cannabis edibles brand in North
America. Wana is vertically integrated in Colorado and has a
rapidly growing licensing division across 13 additional states
while also holding the #1 market share position in Canada. With a
scalable business model, Wana has built a dominant position in the
gummies category, which is one of the fastest growing edibles
segments. Backed by a robust pipeline of new consumer focused
products, Wana is entering new markets to capture consumers looking
for high-quality products that deliver against desired need
states.
* Jetty – The option to acquire 100% of the shares of
Lemurian, Inc., a California-based producer of high-quality
cannabis extracts and pioneer of clean vape technology. Leaders in
solventless vapes and a Top 10 California Brand, Jetty pioneers the
latest technology to create industry-leading extracts including
award-winning solventless vapes, live resin vapes, and other
products. Supported by nine years of operations, Jetty represents a
critical foothold in the largest THC market in the U.S. and is
primed to scale its high-quality products nationally.
In addition, Canopy USA controls a conditional ownership position,
assuming conversion of its exchangeable shares and the exercise of
its option but excluding the exercise of its warrants, of
approximately 13.7% in TerrAscend Corp., a leading North American
cannabis operator with vertically integrated operations and a
presence in Pennsylvania, New Jersey, Michigan, and California as
well as licensed cultivation and processing operations in Maryland.
Canopy USA's direct and indirect interests in TerrAscend includes
control over all exchangeable shares, options, and warrants
previously held by Canopy in TerrAscend as well as the debentures
and loan agreement outstanding between Canopy and certain
TerrAscend subsidiaries.
Ownership of U.S. Cannabis Investments
The shares and interests in Acreage, Wana, Jetty, and TerrAscend
will be held, directly or indirectly, by Canopy USA, and Canopy
will not hold a direct interest in any shares or interests in
Acreage, Wana, Jetty, or TerrAscend. Canopy holds non-voting and
non-participating shares in the capital of Canopy USA. The
Non-Voting Shares do not carry voting rights, rights to receive
dividends or other rights upon dissolution of Canopy USA but are
convertible into common shares of Canopy USA. To facilitate the
creation of the Non-Voting Shares, Canopy USA has raised funds from
a third-party investor and has agreed to issue additional common
shares of Canopy USA to the shareholders of Wana as additional
consideration in exchange for the option to acquire Wana and reduce
the future payments owed in connection with the exercise of the
option to acquire Wana to $3.00. The value of the common shares of
Canopy USA to be issued to the shareholders of Wana will be equal
to 7.5% of the value of Wana as of no earlier than Jan. 1, 2023.
Canopy will have the right to convert its Non-Voting Shares for
common shares of Canopy USA and Canopy USA retains a call right to
repurchase all common shares that have been issued to
third-parties.
Canopy and Canopy USA have also entered into a protection agreement
to provide for certain negative covenants in order to preserve the
value of the Non-Voting Shares held by the Company until such time
as Canopy controls Canopy USA. Canopy also has two designees on
the four-person board of managers of Canopy USA.
Upon closing of Canopy USA's acquisition of Acreage, Canopy will
receive additional Non-Voting Shares from Canopy USA as
consideration for the issuance of Canopy Shares that shareholders
of Acreage will receive in accordance with the Existing Acreage
Arrangement Agreement and the Floating Share Arrangement
Agreement.
In addition, subject to the terms and conditions of the Protection
Agreement and the terms of the option agreements to acquire Wana
and Jetty, Canopy may be required to issue additional Canopy Shares
in satisfaction of certain deferred and/or option exercise payments
to the shareholders of Wana and Jetty. Canopy will receive
additional Non-Voting Shares from Canopy USA as consideration for
any Canopy Shares issued in the future to the shareholders of Wana
and Jetty.
Until such time as Canopy converts the Non-Voting Shares into
common shares of Canopy USA, Canopy will have no economic or voting
interest in Canopy USA, Wana, Jetty, TerrAscend, or Acreage. Canopy
USA, Wana, Jetty, TerrAscend, and Acreage will continue to operate
independently of Canopy.
In connection with the Wana Amendments, the Company has also agreed
to issue Canopy Shares to the shareholders of Wana with a value
equal to 7.5% of the value of Wana as of no earlier than Jan. 1,
2023, subject to certain limitations. The Company has also agreed
to register the resale of the Canopy Shares issued in connection
with the Wana Amendments.
Acreage Agreements
The Company has entered into an arrangement agreement with Canopy
USA and Acreage, pursuant to which, subject to approval of the
holders of the Class D subordinate voting shares of Acreage and the
terms and conditions of the Floating Share Arrangement Agreement,
Canopy USA will acquire all of the issued and outstanding Floating
Shares by way of a court-approved plan of arrangement on the basis
of 0.45 of a Canopy Share in exchange for each Floating Share
held.
It is expected that the Floating Share Arrangement will be effected
by way of a court-approved plan of arrangement under the Business
Corporations Act (British Columbia). The Floating Share
Arrangement requires the approval of: (i) at least two-thirds of
the votes cast by the holders of the Floating Shares; and (ii) at
least a majority of the votes cast by the holders of the Floating
Shares, excluding the votes cast by "interested parties" and
"related parties" (as such terms are defined in Multilateral
Instrument 61-101—Protection Of Minority Security Holders In
Special Transactions), at a special meeting of Acreage shareholders
expected to be held in January 2023.
The Company has also agreed to issue Canopy Shares with a value of
$50 million to, among others, certain unitholders of High Street
Capital Partners, LLC, a subsidiary of Acreage, in order to reduce
a potential liability of approximately $121 million pursuant to
HSCP’s amended tax receivable agreement and the related tax
receivable bonus plans. Canopy Shares with a value of
approximately $15 million will be issued to certain Holders as soon
as practicable as the first installment under this agreement with a
second payment of approximately $15 million in Canopy Shares to
occur on the earlier of (a) the second business day following the
date on which the shareholders of Acreage approve the Floating
Share Arrangement; or (b) April 24, 2023. The final payment with a
value of approximately $20 million will be issued immediately prior
to completion of the Floating Share Arrangement. The Company has
also agreed to register the resale of such Canopy Shares under the
Securities Act of 1933, as amended. In addition, a wholly-owned
subsidiary of the Company has also agreed to acquire an option to
purchase the outstanding principal of Acreage's debt, being an
amount up to $150 million from Acreage's existing lenders in
exchange for an option premium payment of $28.5 million. The
Acreage Debt Optionholder will have the right to exercise its
option at its discretion, and the Option Premium will be used
towards settlement of the outstanding principal of Acreage debt.
In the event that Acreage repays the Acreage Debt on or prior to
maturity, the Option Premium will be returned to the Acreage Debt
Optionholder. In the event that Acreage defaults on the Acreage
Debt and the Acreage Debt Optionholder does not exercise its option
to acquire the Acreage Debt, the Option Premium will be released to
the Lenders.
Canopy and Canopy USA have entered into voting support agreements
with certain of Acreage's directors, officers, and consultants
pursuant to which such persons have agreed, among other things, to
vote their Floating Shares in favor of the Floating Share
Arrangement, representing approximately 7.3% of the issued and
outstanding Floating Shares.
In addition to shareholder and court approvals, the Floating Share
Arrangement is subject to approval of the Amendment Proposal and
applicable regulatory approvals including, but not limited to, TSX
approval and the satisfaction of certain other closing conditions
customary in transactions of this nature. Assuming timely receipt
of all necessary court, shareholder, regulatory and other
third-party approvals and the satisfaction of all other conditions,
closing of the acquisition of Acreage is expected to occur in late
2023.
It is intended that the Company's existing option to acquire the
Class E subordinate voting shares of Acreage on the basis of 0.3048
of a Canopy Share per Fixed Share will be exercised after the
Meeting in accordance with the terms of the arrangement agreement
dated April 18, 2019, as amended on May 15, 2019, Sept. 3, 2020 and
Nov. 17, 2020. Canopy will not hold any Fixed Shares or Floating
Shares.
Completion of the acquisition of the Fixed Shares following
exercise of the option is subject to the satisfaction of certain
conditions set forth in the Existing Acreage Arrangement Agreement.
The acquisition of the Floating Shares pursuant to the Floating
Share Arrangement is anticipated to occur concurrently with the
acquisition of the Fixed Shares pursuant to the Existing Acreage
Arrangement Agreement in late 2023 such that 100% of the issued and
outstanding shares of Acreage will be owned by Canopy USA on
closing of the acquisition of both the Fixed Shares and the
Floating Shares.
Special Shareholder Meeting
In connection with the formation of Canopy USA, the Company is also
pleased to announce that it expects to hold a special meeting of
shareholders in January 2023. At the Meeting, shareholders will be
asked to consider a special resolution authorizing an amendment to
its articles of incorporation to create a new class of non-voting
exchangeable shares in the capital of Canopy. The Exchangeable
Shares will not carry voting rights, rights to receive dividends or
other rights upon dissolution of Canopy but will be convertible
into Canopy Shares.
The Amendment Proposal must be approved by at least 66 2⁄3% of
the votes cast on a special resolution by Canopy shareholders
present in person or represented by proxy at the Meeting.
Greenstar Canada Investment Limited Partnership and CBG Holdings
LLC, indirect, wholly-owned subsidiaries of Constellation Brands,
Inc. have entered into a voting and support agreement with Canopy
pursuant to which they have agreed to vote in favor of the
Amendment Proposal.
The Amendment Proposal provides all shareholders of Canopy with the
opportunity to self-assess their level of comfort with the
Company's exposure to the U.S. cannabis market. There is a risk
that the Company's interpretation of laws, regulations, and
guidelines, may differ from those of others, including those of
shareholders, government authorities, securities regulators, and
stock exchanges. The Exchangeable Shares provide shareholders that
may otherwise have concerns about the Company's exposure to the
U.S. cannabis market with an opportunity to retain an interest in
Canopy through a non-voting and non-participating share.
In the event that the Amendment Proposal is approved, Canopy USA is
expected to exercise the options to acquire Wana and Jetty. If the
Amendment Proposal is not approved, Canopy USA will not be
permitted to exercise the rights to acquire Acreage, Wana or Jetty
and the Floating Share Arrangement Agreement will be terminated.
In such circumstances, Canopy will retain its option to acquire the
Fixed Shares under the Existing Acreage Arrangement Agreement and
Canopy USA will continue to hold an option to acquire Wana and
Jetty as well as exchangeable shares in the capital of TerrAscend.
It is expected that the Company will file a proxy statement related
to the Meeting later today with the U.S. Securities and Exchange
Commission. A full description of the Amendment Proposal will be
included in the Proxy Statement, which will be accessible by
shareholders and filed with the SEC through the Electronic Data
Gathering, Analysis, and Retrieval system at www.sec.gov/edgar and
with the Canadian securities regulators on the System for
Electronic Document Analysis and Retrieval at www.sedar.com.
Balance Sheet Actions
The Company has entered into agreements with certain of its lenders
under its term loan credit agreement dated March 18, 2021 pursuant
to which Canopy will tender US$187,500,000 of the principal amount
outstanding thereunder at a discounted price of US$930 per US$1,000
or US$174,375,000 in the aggregate. The Paydown will be made in
two equal payments: the first payment on or about Nov. 10, 2022,
and the second payment on or about April 17, 2023.
In connection with the Paydown, Canopy is also pleased to announce
that it has agreed with its lenders to amend certain terms of the
Credit Agreement. The Amendments include, among other things,
reductions to the minimum Liquidity (as defined in the Credit
Agreement) covenant to US$100,000,000, which is to be reduced as
payments are made in accordance with the Paydown, certain changes
to the application of net proceeds from asset sales and the
establishment of a new committed delayed draw term credit facility
in an aggregate principal amount of US$100,000,000. In addition,
the Amendments include the elimination of the additional
US$500,000,000 incremental term loan facility.
The Paydown is expected to reduce cash interest costs and enable
the Company to continue to pursue growth investments, acquisitions
and other strategic initiatives.
In addition, the Company also intends, following the creation of
the Exchangeable Shares, to negotiate an exchange agreement with
Greenstar to purchase for cancellation up to CAD$100 million
principal amount of senior notes of the Company due July 2023 in
exchange for Exchangeable Shares, subject to the rules and policies
of the Nasdaq and the Toronto Stock Exchange. As Canopy continues
to work towards positive cashflow and sustained profitable
operations, the repurchase of the Notes in exchange for
Exchangeable Shares would preserve the Company's cash on hand and
reduce the Company's annual expenses.
Relationship with Constellation
In connection with these proposed transactions, assuming approval
and adoption of the Amendment Proposal, Constellation has expressed
its current intention to convert all of its Canopy Shares into
Exchangeable Shares. However, any decision to convert will be made
by Constellation, and Constellation is not obligated to effect any
such conversion.
If Constellation elects to convert its Canopy Shares into
Exchangeable Shares, certain other transactions between Canopy and
Constellation will occur, including (i) CBG will surrender to the
Company for cancellation for no consideration all warrants to
purchase Canopy Shares held by CBG; (ii) the investor rights
agreement, administrative services agreement, co-development
agreement, and any and all other commercial arrangements between
Canopy and its affiliates, on the one hand, and Constellation and
its affiliates, on the other hand, will be terminated; (iii)
Constellation will no longer have the right to nominate persons to
the board of directors of Canopy, will no longer have any approval
rights over certain transactions proposed to be undertaken by the
Company, and restrictive covenants previously agreed between the
parties will terminate; and (iv) all of Constellation's nominees
that are currently serving on the Board are expected to resign and
new directors will be appointed to fill the vacancies caused by
their resignations.
In the event that Constellation does not convert its Canopy Shares
into Exchangeable Shares, Canopy USA will not be permitted to
exercise the rights to acquire Acreage, Wana or Jetty and the
Floating Share Arrangement Agreement will be terminated. In such
circumstances, Canopy will retain its option to acquire the Fixed
Shares under the Existing Acreage Arrangement Agreement and Canopy
USA will continue to hold an option to acquire Wana and Jetty as
well as exchangeable shares and other securities in the capital of
TerrAscend. In addition, Canopy USA will exercise its repurchase
rights to acquire the interests in Canopy USA held by the third
party investors.
Approvals and Recommendation
The strategy was approved by the board of directors of Canopy, and
the Canopy board of directors unanimously recommends that Canopy
shareholders vote in favor of the Amendment Proposal.
Advisors and Counsel
Greenhill & Co. Canada Ltd. is acting as financial advisor to
Canopy. Cassels Brock & Blackwell LLP is acting as Canadian legal
advisor to Canopy, and Paul Hastings LLP and Dentons are acting as
U.S. legal advisors to Canopy. Laurel Hill Advisory Group is
acting as strategic shareholder advisor and proxy solicitation
agent to Canopy.
About Canopy Growth Corporation
Canopy Growth Corporation -- www.canopygrowth.com -- is a
diversified cannabis and cannabinoid-based consumer product
company, driven by a passion to improve lives, end prohibition, and
strengthen communities by unleashing the full potential of
cannabis. Leveraging consumer insights and innovation, we offer
product varieties in high quality dried flower, oil, softgel
capsule, infused beverage, edible, and topical formats, as well as
vaporizer devices by Canopy Growth and industry-leader Storz &
Bickel. The Company's global medical brand, Spectrum Therapeutics,
sells a range of full-spectrum products using its colour-coded
classification system and is a market leader in both Canada and
Germany. Through its Tweed and Tokyo Smoke banners, the Company
reaches its adult-use consumers and have built a loyal following by
focusing on top quality products and meaningful customer
relationships. Canopy Growth has entered into the health and
wellness consumer space in key markets including Canada, the United
States, and Europe through BioSteel sports nutrition, and This
Works skin and sleep solutions; and has introduced additional
federally-permissible CBD products to the United States through our
First & Free and Martha Stewart CBD brands.
Canopy reported a net loss of C$320.48 million for the year ended
March 31, 2022, a net loss of C$1.67 billion for the year ended
March 31, 2021, and a net loss of C$1.38 billion for the year ended
March 31, 2020.
* * *
As reported by the TCR on July 25, 2022, Fitch Ratings downgraded
the Long-Term Issuer Default Ratings (IDR) for Canopy Growth
Corporation (Canopy) and 11065220 Canada Inc. to 'RD' from 'C' on
the completion of Canopy's exchange offer for a portion of the
convertible notes due July 2023.
Also in July 2022, S&P Global Ratings raised its ICR on Smiths
Falls, Ont.-based Canopy Growth Corp. (CGC) to 'CCC' from 'SD'.
CAREERBUILDER LLC: Bank Debt Trades at 34% Discount
---------------------------------------------------
Participations in a syndicated loan under which Careerbuilder LLC
is a borrower were trading in the secondary market around 66
cents-on-the-dollar during the week ended Fri., October 28, 2022,
according to Bloomberg's Evaluated Pricing service data.
The USD350 million facility is a term loan. The loan is scheduled
to mature in July 2023. As of October 28, 2022, USD175.6 million
of the amount was drawn and outstanding.
Careerbuilder, LLC, operates an online job portal.
CASTLE US HOLDING: $1.2B Bank Debt Trades at 31% Discount
---------------------------------------------------------
Participations in a syndicated loan under which Castle US Holding
Corp is a borrower were trading in the secondary market around 69
cents-on-the-dollar during the week ended Fri., October 28, 2022,
according to Bloomberg's Evaluated Pricing service data.
The USD1.2 billion facility is a term loan. The loan is scheduled
to mature in January 2027. As of October 28, 2022, the amount was
fully drawn and outstanding.
Castle, through its parent company (d/b/a Cision), provides
database tools and software to public relations and communications
professionals.
CASTLE US HOLDING: $295M Bank Debt Trades at 31% Discount
---------------------------------------------------------
Participations in a syndicated loan under which Castle US Holding
Corp is a borrower were trading in the secondary market around 69
cents-on-the-dollar during the week ended Fri., October 28, 2022,
according to Bloomberg's Evaluated Pricing service data.
The USD295 million facility is a term loan. The loan is scheduled
to mature in January 2027. As of October 28, 2022, the amount was
fully drawn and outstanding.
Castle, through its parent company (d/b/a Cision), provides
database tools and software to public relations and communications
professionals.
CC HILLCREST: Unsecureds to be Paid in Full over 60 Months
----------------------------------------------------------
CC Hillcrest, LLC, filed with the U.S. Bankruptcy Court for the
Northern District of Texas a Disclosure Statement for Plan of
Reorganization dated October 27, 2022.
The Debtor is the owner of 18.3 acres of real property and
improvements located at 2019 Hillcrest Street Mesquite TX 75149,
where the Debtor operates a 352-unit apartment complex known as the
"Hillcrest Apartments" (the "Property").
The Debtor will use its normal operating income to make payments
under the Plan and pay ordinary operating expenses. In addition,
the Debtor will use the proceeds of the $4,000,000 DIP Loan to make
repairs and improvements to the Property.
The Plan is a Plan of Reorganization. The Debtor will continue its
business after confirmation of this Plan.
The Debtor scheduled aggregate liabilities in the amount of
$19,430,800 as of the Petition Date. The Secured Claim of
$19,250,600 held by NEF Preservation PB Fund I LP is the largest
Claim in this bankruptcy case. Unsecured Claims scheduled by the
Debtor total $180,200.
The Plan pays all Allowed Secured and Unsecured Claims in full,
with interest. In contrast, a Chapter 7 liquidation would result
in no recovery to Unsecured Claims.
Class 6 consists of Allowed General Unsecured Claims other than
Tenant Claims and Insider Claims. These Claims shall be paid in
full over 60 months from the Effective Date, with interest accruing
from the Effective Date at the rate of 1% per annum. These Claims
will be paid in equal monthly installments of principal and
interest commencing on the first day of the first month following
the Effective Date and continuing on the first day of each month
thereafter for a total of 60 months. These Claims are Impaired, and
the holders of these Claim are entitled to vote to accept or reject
the Plan.
Class 7 consists of Allowed Tenant Claims. Tenant Claims other than
for the return of security deposits shall be paid in full over 60
months from the Effective Date, with interest accruing from the
Effective Date at the rate of 1% per annum. These Claims will be
paid in equal monthly installments of principal and interest
commencing on the first day of the first month following the
Effective Date and continuing on the first day of each month
thereafter for a total of 60 months. These Claims are Impaired.
Class 8 consists of Allowed Unsecured Claims of Insiders. These
Claims shall be paid in full but only after full payment of Classes
1-7 and all Administrative and Priority Claims according to the
Plan. Class 8 Claimants may vote on the Plan, but their Claims will
not be counted for or against Confirmation. These Claims are
Impaired.
Class 9 shall consist of Allowed Equity Interests in the Debtor.
Class 9 Interests shall be retained under the Plan. These Interests
are not Impaired.
The Debtor will use its normal operating income to make payments
under the Plan and pay ordinary operating expenses.
The $4,000,000.00 DIP Loan made by Code Capital Partners, LLC, the
managing member of the Debtor, has been and will continue to be
used for the purpose of completing deferred maintenance and making
other improvements on the Property. The Debtor and the City have
entered into a settlement agreement, subject to approval of the
Court, outlining a timeline and procedures for making these
payments, repairs and improvements.
A full-text copy of the Disclosure Statement dated October 27,
2022, is available at https://bit.ly/3DVYv0c from PacerMonitor.com
at no charge.
Attorneys for Debtor:
Joyce W. Lindauer
State Bar No. 21555700
Joyce W. Lindauer Attorney, PLLC
1412 Main Street, Suite 500
Dallas, Texas 75202
Telephone: (972) 503-4033
Facsimile: (972) 503-4034
About CC Hillcrest LLC
CC Hillcrest, LLC, operates an apartment complex in Mesquite,
Texas. It sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Tex. Case No. 22-31362) on July 29,
2022. In the petition signed by Jared Remington, manager, the
Debtor disclosed up to $50 million in both assets and liabilities.
Judge Scott W. Everett oversees the case.
Joyce W. Lindauer Attorney, PLLC, is the Debtor's counsel.
CELSIUS NETWORK: After Data Release, Privacy Ombudsman Named
------------------------------------------------------------
Nelson Wang of CoinDesk reports that Judge Martin Glenn, the U.S.
judge presiding over the bankruptcy case of crypto lender Celsius
Network, has agreed to appoint a consumer privacy ombudsman in the
case, according to a court filing on Monday, October 24, 2022.
The U.S. Trustee in the case argued that an ombudsman was needed if
Celsius is going to sell customer lists, a position the judge
agreed with. But Celsius argued there was no need to appoint an
ombudsman because any sale will automatically comply with its own
privacy policy.
The judge’s decision follows the release of more than 29,000
pages of court documents in early October that revealed the
financial details of hundreds of thousands of Celsius' customers.
The information appears to have been released as part of standard
bankruptcy procedure as Celsius makes its way through the Chapter
11 restructuring process after freezing customer accounts in July
2022. About 600,000 customer accounts are affected by the
disclosure, revealing their wallet addresses, transaction
histories, crypto holdings, recent transactions and other
information.
Celsius reluctantly agreed to the release of its customer
information, arguing it would “reduce” the resale value of its
customer list. In the end, users' email and home addresses were
allowed to be redacted.
Glenn cited court precedent and inadequate proof that doxxing users
would put them at risk in his initial decision to compel the
release of customer information.
"Sealing information such as that sought by the Debtors [Celsius]
from public disclosure risks transforming the open and transparent
bankruptcy process into something very different, which the Court
is loath to do without a strong showing of real and not speculative
risks," Judge Glenn wrote in a September court filing.
Ombudsman Named
The Bankruptcy Court has entered an order approving the United
States Trustee's appointment of Lucy L. Thomson, as consumer
privacy
ombudsman.
The Consumer Privacy Ombudsman can be reached at:
Lucy L. Thomson
1455 Pennsylvania Avenue, N.W. Suite 400
Washington, D.C. 20004
(703) 798-1001
lucythomson1@mindspring.com
About Celsius Network
Celsius Network LLC -- http://www.celsius.network/-- is a
financial services company that generates revenue through
cryptocurrency trading, lending, and borrowing, as well as by
engaging in proprietary trading.
Celsius helps over a million customers worldwide to find the path
towards financial independence through a compounding yield service
and instant low-cost loans accessible via a web and mobile app.
Celsius has a blockchain-based fee-free platform where membership
provides access to curated financial services that are not
available through traditional financial institutions.
The Celsius Wallet claims to be one of the only online crypto
wallets designed to allow members to use coins as collateral to get
a loan in dollars, and in the future, to lend their crypto to earn
interest on deposited coins (when they're lent out).
Crypto lenders such as Celsius boomed during the COVID-19 pandemic,
drawing depositors with high interest rates and easy access to
loans rarely offered by traditional banks. But the lenders'
business model came under scrutiny after a sharp sell-off in the
crypto market spurred by the collapse of major tokens terraUSD and
luna in May 2022.
New Jersey-based Celsius froze withdrawals in June 2022, citing
"extreme" market conditions, cutting off access to savings for
individual investors and sending tremors through the crypto
market.
The list of major crypto firms that have filed for bankruptcy
protection in 2022 now includes Celsius Network, Three Arrows
Capital and Voyager Digital.
Celsius Network LLC and its subsidiaries sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No.
22-10964) on July 14, 2022. In the petition filed by CEO Alex
Mashinsky, the Debtor estimated assets and liabilities between $1
billion and $10 billion.
Kirkland & Ellis LLP is serving as legal counsel, Centerview
Partners is serving as financial advisor, and Alvarez & Marsal is
serving as restructuring advisor to Celsius. Stretto, the claims
agent, 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: Creditors Urge Court to Stop Stablecoin Sales
--------------------------------------------------------------
Unsecured creditors of cryptocurrency lending company Celsius
Network LLC are asking a New York bankruptcy judge to deny the
company's permission to sell its stocks of stablecoin
cryptocurrency, saying it has yet to prove it owns the assets.
On Sept. 15, 2022, the Debtors filed a motion requesting
authorization "to continue to sell and/or exchange their stablecoin
for U.S. dollars" on "a postpetition basis and consistent with past
practice." The Debtors disclose that Debtors Celsius Network
Limited (UK), Debtor Celsius Network LLC (US), and non-Debtor
Celsius Network EU UAB (LT) hold "eleven different forms of
stablecoin" valued at $23 million.
The Official Committee of Unsecured Creditors objects to the
Debtors' motion.
The Committee recognizes that the Debtors may eventually need
additional liquidity to administer these chapter 11 cases and
emerge from bankruptcy. The Committee also
understands that selling stablecoin (which is theoretically not
subject to as dramatic fluctuation in value as other types of
cryptocurrency) may be a less costly source of financing than, and
preferable to, debtor-in-possession financing, borrowing from
decentralized finance protocols, or other sources of liquidity.
"Regardless, the Stablecoin Sale Motion should not be approved at
this time. The ownership of the stablecoin is contested by certain
creditors that transferred stablecoin to the Debtors. Indeed, at
the outset of these chapter 11 cases, the Debtors identified the
question of whether the Debtors or account holders own crypto
assets held on the Celsius platform as one of the key legal issues
in these cases. In the more than three months since the
commencement of these cases and the forty days since the filing of
the Stablecoin Sale Motion, the Debtors have not met their burden
to establish which (if any) crypto assets constitute property of
the estate. Indeed, the Stablecoin Sale Motion includes little more
than conclusory statements that the Debtors own the assets at
issue, which is insufficient for purposes of an issue of this
magnitude (and particularly given the circumstances of these
cases). Simply put, until the Debtors provide sufficient evidence
to establish that they own the stablecoin they are seeking to sell,
they should not be permitted to sell those assets. Furthermore,
the Court should defer any hearing on the ownership of the
stablecoin until the Debtors provide notice to interested parties
of the evidence and arguments that the Debtors intend to present
with respect to the ownership issue. The Committee understands that
there is a need to move these cases forward in a deliberate manner
and believes these matters can be briefed within the current sale
timeline recently approved by the Court," the Committee said.
"Alternatively, to the extent that the Debtors demonstrate an
immediate need to sell stablecoin, the order approving any such
sale should provide that (i) potentially affected account holders
shall receive, as adequate protection, liens on unencumbered assets
held by the Debtors, to the extent the Court finds that those
account holders have an interest in the stablecoin being sold, and
to the extent of and in an aggregate amount equal to, any
dollar-for-dollar diminution in value of their interests in
stablecoin (which may be zero, if account holders do not have an
interest in the stablecoin) arising from the Debtors’ sale
thereof ("Diminution in Value"), (ii) all parties' rights with
respect to issues regarding the ownership of cryptocurrency
transferred to the Debtors, whether as part of the Earn, Custody,
or Borrow programs or marked as Withheld assets, are fully
reserved, and (iii) the Debtors shall comply with additional
procedural and notice requirements to ensure that any sales of
stablecoin are necessary and in the best interests of the Debtors'
estates."
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
CHRIS PETTIT: Trustee Taps Rogers Towers as Special Counsel
-----------------------------------------------------------
Eric Terry, the trustee appointed in the Chapter 11 cases of Chris
Pettit & Associates, PC and Christopher John Pettit, seeks approval
from the U.S. Bankruptcy Court for the Western District of Texas to
employ Rogers Towers, PA as special Florida counsel.
Rogers Towers will render these services:
(a) review of offers and contracts for sale of Roble Dorado,
LLC's real estate in Golden Oak, Fla., and legal advice related to
such matters;
(b) customary due diligence and other legal matters related to
the sale of assets located in Florida;
(c) advise regarding the closing of the sale of the Florida
property and any Florida personal property; and
(d) provide general advice as to matters of Florida law.
The hourly rates of the firm's counsel and staff are as follows:
Edward L. Kelly $385
Charmaine Dennis $185
In addition, the firm will seek reimbursement for expenses
incurred.
Edward Kelly, Esq., a member of Rogers Towers, 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:
Edward L. Kelly, Esq.
Rogers Towers, PA
1301 Riverplace Boulevard, Suite 1500
Jacksonville, FL 32207
Telephone: (904) 346-5570
Email: ekelly@rtlaw.com
About Chris Pettit & Associates
Chris Pettit & Associates, PC, a personal injury law firm in Texas,
and principal Christopher John Pettit sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Texas Lead Case
No. 22-50591) on June 1, 2022. In the petition filed by Mr. Pettit,
the Debtors listed up to $50,000 in assets and up to $500,000 in
liabilities.
Judge Craig A. Gargotta oversees the cases.
Michael G. Colvard, Esq., at Martin & Drought, PC is the Debtors'
counsel.
Eric Terry, the trustee appointed in the Chapter 11 cases, tapped
Dykema Gossett, PLLC as bankruptcy counsel and Rogers Towers, PA as
special Florida counsel.
CINEWORLD GROUP: Gets OK to Hire Kirkland & Ellis as Legal Counsel
------------------------------------------------------------------
Cineworld Group, PLC and its subsidiaries received approval from
the U.S. Bankruptcy Court for the Southern District of Texas to
employ Kirkland & Ellis, LLP and Kirkland & Ellis International,
LLP to handle their Chapter 11 cases.
The firms' services include:
a. advising the Debtors with respect to their powers and duties
in the continued management and operation of their businesses and
properties;
b. advising and consulting on the conduct of these cases,
including all of the legal and administrative requirements of
operating in Chapter 11;
c. attending meetings and negotiating with representatives of
creditors and other parties in interest;
d. taking all necessary actions to protect and preserve the
Debtors' estates, including prosecuting actions on the Debtors'
behalf, defending any action commenced against the Debtors, and
representing the Debtors in negotiations concerning litigation in
which the Debtors are involved, including objections to claims
filed against the Debtors' estates;
e. preparing pleadings;
f. representing the Debtors in connection with obtaining
authority to continue using cash collateral and post-petition
financing;
g. advising the Debtors in connection with any potential sale of
assets;
h. appearing before the bankruptcy court and any appellate
courts;
i. advising the Debtors regarding tax matters;
j. taking necessary actions to negotiate, prepare, and obtain
approval of a disclosure statement and confirmation of a Chapter 11
plan and all documents related thereto; and
k. performing all other necessary legal services for the Debtors
in connection with the prosecution of these Chapter 11 cases,
including: (i) analyzing the Debtors' leases and contracts and the
assumption and assignment or rejection thereof; (ii) analyzing the
validity of liens against the Debtors' assets; and (iii) advising
the Debtors on corporate and litigation matters.
The firms will be paid at these rates:
Partners $1,135 to $1,995 per hour
Of Counsels $805 to $1,845 per hour
Associates $650 to $1,245 per hour
Paraprofessionals $265 to $495 per hour
In addition, the firms will receive reimbursement for their
out-of-pocket expenses.
The Debtors paid an advance retainer of $300,000.
In accordance with Appendix B-Guidelines for reviewing fee
applications filed by attorneys in larger Chapter 11 cases, the
firms disclosed the following:
Question: Did you agree to any variations from, or alternatives
to, your standard or customary billing arrangements for this
engagement?
Response: No.
Question: Do any of the professionals included in this
engagement vary their rate based on the geographic location of the
bankruptcy case?
Response: No.
Question: If you represented the client in the 12 months
prepetition, disclose your billing rates and material financial
terms for the prepetition engagement, including any adjustments
during the 12 months prepetition. If your billing rates and
material financial terms have changed post-petition, explain the
difference and the reasons for the difference.
Response: The firms' current hourly rates for services rendered
on behalf of the Debtors range as follows: partners, $1,135 to
$1,995; of counsel, $805 to $1,845; associates, $650 to $1,245; and
paraprofessionals, $265 to $495.
Question: Has your client approved your prospective budget and
staffing plan, and, if so for what budget period?
Response: Yes. More specifically, pursuant to the DIP order,
professionals proposed to be retained by the Debtors are required
to provide weekly estimates of fees and expenses incurred in these
chapter 11 cases.
Joshua Sussberg, Esq., president of Joshua A. Sussberg, P.C., a
partner of the Kirkland & Ellis firms, disclosed in a court filing
that the firms are "disinterested" as the term is defined in
Section 101(14) of the Bankruptcy Code.
Mr. Sussberg can be reached at:
Joshua A. Sussberg, Esq.
Joshua A. Sussberg, P.C.
Kirkland & Ellis LLP
Kirkland & Ellis International LLP
601 Lexington Avenue
New York, NY 10022
Tel: (212) 446-4800
Fax: (212) 446-4900
Email: jsussberg@kirkland.com
About Cineworld Group
London-based Cineworld Group PLC was founded in 1995 and is the
world's second-largest cinema chain. Cineworld operates 751 sites
with 9,000 screens in 10 countries, including the Cineworld and
Picturehouse screens in the UK and Ireland, Yes Planet in Israel,
and Regal Cinemas in the US.
According to The Guardian, the Griedinger family, including Mooky's
brother and deputy chief executive, Israel, have struggled to
maintain control of the ailing business but have been forced to
reduce their stake from 28% in recent years. Cineworld's top five
investors include the Chinese Jangho Group at 13.8%, Polaris
Capital Management (7.82%), Aberdeen Standard Investments (4.98%)
and Aviva Investors (4.88%).
The London-listed Cineworld, which has run up debt of more than
$4.8 billion after losses soared during the pandemic, is pinning
its hopes on a meatier slate of movies in 2022 to bounce back from
a two-year lull.
Cineworld Group plc and 104 affiliates sought Chapter 11 protection
(Bankr. S.D. Tex. Lead Case No. 22-90168) on Sept. 7, 2022,
estimating more than $1 billion in assets and debt.
The Debtors tapped Kirkland & Ellis, LLP and Jackson Walker, LLP as
bankruptcy counsels; PJT Partners, LP as investment banker;
AlixPartners, LLP as restructuring advisor; and Ernst & Young, LLP
as tax service provider. Kroll is the claims agent.
CINEWORLD GROUP: Taps Ernst & Young as Tax Services Provider
------------------------------------------------------------
Cineworld Group PLC and its subsidiaries received approval from the
U.S. Bankruptcy Court for the Southern District of Texas to employ
Ernst & Young, LLP as tax service provider.
The firm's services include:
A. Advisory Services
a. The scope of the bankruptcy tax advisory services (the
"Advisory Services") will consist of developing an understanding of
the tax implications associated with the Debtors' chapter 11
filing.
b. EY LLP will advise the Debtors in developing an understanding
of the tax issues and options related to the chapter 11 filing,
taking into account the Debtors' specific facts and circumstances,
for U.S. federal and state and local tax purposes.
c. EY LLP will advise on the U.S. federal and state and local
income tax consequences of proposed plans of reorganization,
including, if necessary, assisting in the preparation of IRS ruling
requests regarding the tax consequences of alternative
reorganization structures and tax opinions.
d. EY LLP will understand and advise on the U.S. tax
implications of reorganization and/or restructuring alternatives
the Debtors are evaluating with existing creditors that may result
in a change in the equity, capitalization, and/or ownership of the
shares of the Debtors and their assets. As requested, EY LLP will
prepare projections of future taxable income reflecting the
restructuring alternatives.
e. EY LLP will gather information, prepare calculations
("Section 382 Calculations") and apply the appropriate federal and
state and local tax law to historic information regarding changes
in the ownership of the Debtors' stock to calculate whether any of
the shifts in stock ownership may have caused an ownership change
that will restrict the use of tax attributes (such as net operating
loss, capital loss, credit carry forwards, and built in losses) and
the amount of any such limitation.
f. EY LLP will prepare calculations and apply the appropriate
U.S. federal and state and local tax law to determine the amount of
tax attribute reduction related to debt cancellation income and
modeling of tax consequences of such reduction.
g. EY LLP will prepare tax basis balance sheets and computations
of stock basis as of certain relevant dates for purposes of
analyzing the tax consequences of alternative reorganization
structures.
h. EY LLP will analyze U.S. federal state and local tax
treatment of: i. the costs and fees incurred by the Debtors in
connection with the bankruptcy proceedings, including tax return
disclosure and presentation; and ii. interest and financing costs
related to debt subject to automatic stay, and new debt incurred as
the Debtors emerge from bankruptcy, including tax return disclosure
and presentation.
i. EY LLP will analyze U.S. federal and state and local tax
consequences of: i. restructuring and rationalization of
intercompany accounts, and upon
written request, will analyze tax impacts of transfer pricing and
related cash management; ii. restructuring in the U.S. or
internationally during bankruptcy, including tax return disclosure
and presentation; iii. potential bad debt and worthless stock
deductions, including tax return disclosure presentation; and iv.
employee benefit plans, as requested in writing.
j. EY LLP will advise Debtor personnel on the bankruptcy tax
process and procedure lifecycle, the typical tax issues, options,
and opportunities related to a chapter 11 filing, the typical
impact of a chapter 11 filing on a corporate tax department's
operations, and leading practices for addressing such impact areas
while operating in bankruptcy and the post-emergence period.
k. As requested by the Debtors, EY LLP will assist with various
tax, compliance and audit issues arising in the ordinary course of
business while in bankruptcy, including but not limited to: IRS
and/or state and local income and indirect tax audit defense, and
compliance questions, notices or issues related (but not limited)
to: federal, state, and local income/franchise tax, sales and use
tax, property tax, employment tax, credit and incentive agreements,
and unclaimed property.
l. If applicable, EY LLP will advise on potential alternatives
and elections relative to the CARES Act and the Tax Cuts and Jobs
Act.
m. EY LLP will advise and/or assist, as requested and as
permissible, with determining the validity and amount of bankruptcy
tax claims or assessments, including but not limited to the
following types of taxes: income taxes, franchise taxes, sales
taxes, use taxes, employment taxes, property taxes, severance
taxes, excise taxes, credit and incentive agreements, other
miscellaneous taxes or regulatory assessments and fees, and
unclaimed property.
n. As requested by the Debtors, EY LLP will scope, assist, and
advise on the potential for seeking cash tax refunds, including but
not limited to the following types of taxes: income taxes,
franchise taxes, sales taxes, use taxes, employment taxes, property
taxes, tax credit and incentive agreements and unclaimed property.
o. EY LLP will provide documentation, as appropriate or
necessary, of tax matters, of tax analysis, opinions,
recommendations, conclusions and correspondence for any proposed
restructuring alternative, bankruptcy tax issue, or other tax
matter described about. The Debtors will be responsible for all
accounting and management decisions.
p. EY LLP will assist with tax compliance issues arising in the
ordinary course of business while in bankruptcy, including but
limited to identifying proactive tax return disclosures and
bankruptcy-specific cover letters or requests, and addressing
notices received in bankruptcy context.
q. As requested, EY LLP will provide support and tax analysis
with respect to other routine federal, state and local income tax
and non-income matters related to the ongoing operations of the
Debtors that are not covered by a separate SOW and do not involve
any significant tax planning or transactions outside the
transactions anticipated as part of the bankruptcy.
B. Tax Compliance Services
a. EY LLP will prepare an Amended U.S. Form 1120 ("U.S.
Corporate Income Tax Return") for Crown Intermediate HoldCo and its
subsidiaries for the tax year ended December 31, 2019.
b. EY LLP will prepare amended prior year corporate state tax
returns for those entities and years listed on Appendix A of the
First Tax Compliance SOW.
c. EY LLP will prepare a U.S. Corporate Income Tax Return for
Crown Finance US, Inc. and its subsidiaries for the tax year ended
December 31, 2021.
d. EY LLP will prepare a U.S. Corporate Income Tax Return for
R&S Theatres, Inc. for the tax year ended December 31, 2021.
e. EY LLP will prepare territorial and state and local tax
returns for the entities and jurisdictions listed in Appendix A of
the Second Tax Compliance SOW for the tax year ended December 31,
2021.
The firm will be paid at these rates:
Partner/Principal $1,250 per hour
Managing Director $1,150 per hour
Senior Manager $950 per hour
Manager $850 per hour
Senior $600 per hour
Staff $400 per hour
EY LLP's services pursuant to the First Tax Compliance SOW will be
provided for a fixed fee of $75,000. Meanwhile, the firm's services
pursuant to the Second Tax Compliance SOW will be provided for a
fixed fee of $195,000.
On Aug. 30, EY LLP received a retainer payment of $150,000 from
Regal Cinemas, Inc.
Molly Ericson, a managing director at EY LLP, 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 through:
Molly Ericson
Ernst & Young LLP
Suite 1000
55 Ivan Allen Jr. Boulevard
Atlanta, GA 30308
Tel: (404) 874 8300
Fax: (404) 817 5589
About Cineworld Group
London-based Cineworld Group PLC was founded in 1995 and is the
world's second-largest cinema chain. Cineworld operates 751 sites
with 9,000 screens in 10 countries, including the Cineworld and
Picturehouse screens in the UK and Ireland, Yes Planet in Israel,
and Regal Cinemas in the US.
According to The Guardian, the Griedinger family, including Mooky's
brother and deputy chief executive, Israel, have struggled to
maintain control of the ailing business but have been forced to
reduce their stake from 28% in recent years. Cineworld's top five
investors include the Chinese Jangho Group at 13.8%, Polaris
Capital Management (7.82%), Aberdeen Standard Investments (4.98%)
and Aviva Investors (4.88%).
The London-listed Cineworld, which has run up debt of more than
$4.8 billion after losses soared during the pandemic, is pinning
its hopes on a meatier slate of movies in 2022 to bounce back from
a two-year lull.
Cineworld Group plc and 104 affiliates sought Chapter 11 protection
(Bankr. S.D. Tex. Lead Case No. 22-90168) on Sept. 7, 2022,
estimating more than $1 billion in assets and debt.
The Debtors tapped Kirkland & Ellis, LLP and Jackson Walker, LLP as
bankruptcy counsels; PJT Partners, LP as investment banker;
AlixPartners, LLP as restructuring advisor; and Ernst & Young, LLP
as tax service provider. Kroll is the claims agent.
CINEWORLD GROUP: Taps Kramer as Independent Counsel to BOD
----------------------------------------------------------
Cineworld Group, PLC and its subsidiaries received approval from
the U.S. Bankruptcy Court for the Southern District of Texas to
employ Kramer Levin Naftalis & Frankel, LLP as independent counsel
to the parent company's board of directors.
The firm's services include:
(a) review and analysis of proposed drafts of pleadings to be
filed with the court;
(b) diligence to be conducted on an independent basis for the
benefit of the board with respect to the Debtors' reorganization
through these Chapter 11 cases;
(c) analysis and services on matters in which the Debtors' other
retained professionals may have a conflict of interest or as needed
based on specialization, including coordination with the Debtors'
independent directors and their advisors; and
(d) drafting, on behalf of the board, necessary memoranda,
reports, or other legal advice concerning these Chapter 11 cases.
Kramer will be paid at these rates:
Partners $1,200 to $1,685 per hour
Counsel $1,215 to $1,660 per hour
Special Counsel $1,100 to $1,340 per hour
Associates $675 to $1,195 per hour
Paralegals $340 to $520 per hour
In addition, the firm will be reimbursed for out-of-pocket expenses
incurred.
Prior to the petition date, the Debtor paid the firm a retainer of
$50,000.
In accordance with Appendix B-Guidelines for reviewing fee
applications filed by attorneys in larger Chapter 11 cases, Kramer
disclosed the following:
Question: Did you agree to any variations from, or alternatives
to, your standard or customary billing arrangements for this
engagement?
Response: No.
Question: Do any of the professionals included in this
engagement vary their rate based on the geographic location of the
bankruptcy case?
Response: No.
Question: If you represented the client in the 12 months
prepetition, disclose your billing rates and material financial
terms for the prepetition engagement, including any adjustments
during the 12 months prepetition. If your billing rates and
material financial terms have changed post-petition, explain the
difference and the reasons for the difference.
Response: Kramer was engaged by the Debtors, with respect to
this matter, on August 19, 2022. In August, 2022, Kramer's hourly
rates were $1,200 to $1,685 for partners, $1,215 to $1,660 for
counsel, $1,100 to $1,340 for special counsel, $675 to $1,195 for
associates, and $340 to $520 for paraprofessionals. Kramer's
billing rates and the material financial terms with respect to this
representation have not changed post-petition.
In the twelve (12) months prepetition, Kramer Levin also
represented the Debtors with respect to certain immigration,
regulatory, and tax law matters. In 2021, Kramer Levin's hourly
rates were $1,100 to $1,575 for partners, $1,105 to $1,575 for
counsel, $1,025 to $1,220 for special counsel, $615 to $1,090 for
associates, and $310 to $475 for paraprofessionals.
Question: If you represented the client in the 12 months
prepetition, disclose your billing rates and material financial
terms for the prepetition engagement, including any adjustments
during the 12 months prepetition. If your billing rates and
material financial terms have changed post-petition, explain the
difference and the reasons for the difference.
Response: To be provided.
Adam Rogoff, Esq., a partner at Kramer, disclosed in a court filing
that his firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Adam C. Rogoff, Esq.
Kramer Levin Naftalis & Frankel, LLP
1177 Avenue of the Americas
New York, NY 10036
Tel: 212-715-9100 / 212-715-9285
Fax: 212-715-8000 / 212-715-8265
Email: arogoff@kramerlevin.com
About Cineworld Group
London-based Cineworld Group PLC was founded in 1995 and is the
world's second-largest cinema chain. Cineworld operates 751 sites
with 9,000 screens in 10 countries, including the Cineworld and
Picturehouse screens in the UK and Ireland, Yes Planet in Israel,
and Regal Cinemas in the US.
According to The Guardian, the Griedinger family, including Mooky's
brother and deputy chief executive, Israel, have struggled to
maintain control of the ailing business but have been forced to
reduce their stake from 28% in recent years. Cineworld's top five
investors include the Chinese Jangho Group at 13.8%, Polaris
Capital Management (7.82%), Aberdeen Standard Investments (4.98%)
and Aviva Investors (4.88%).
The London-listed Cineworld, which has run up debt of more than
$4.8 billion after losses soared during the pandemic, is pinning
its hopes on a meatier slate of movies in 2022 to bounce back from
a two-year lull.
Cineworld Group plc and 104 affiliates sought Chapter 11 protection
(Bankr. S.D. Tex. Lead Case No. 22-90168) on Sept. 7, 2022,
estimating more than $1 billion in assets and debt.
The Debtors tapped Kirkland & Ellis, LLP and Jackson Walker, LLP as
bankruptcy counsels; PJT Partners, LP as investment banker;
AlixPartners, LLP as restructuring advisor; and Ernst & Young, LLP
as tax service provider. Kroll is the claims agent.
CINEWORLD GROUP: U.S. Subsidiaries Tap Willkie Farr as Counsel
--------------------------------------------------------------
Crown Finance US, Inc., a U.S. subsidiary of Cineworld Group PLC,
received approval from the U.S. Bankruptcy Court for the Southern
District of Texas to employ the law firm of Willkie Farr &
Gallagher, LLP.
Willkie Farr & Gallagher will serve as legal counsel for the
independent directors of Crown Finance US and several other U.S.
subsidiaries of Cineworld in connection with certain restructuring
transactions, including various financing and liability management
transactions.
The firm will be paid at these rates:
Partners $1,325 to $1,900 per hour
Associates $435 to $1,300 per hour
Paralegals $295 to $490 per hour
In addition, the firm will be reimbursed for out-of-pocket expenses
incurred.
Willkie Farr & Gallagher received an initial retainer of $300,000.
In accordance with Appendix B-Guidelines for reviewing fee
applications filed by attorneys in larger Chapter 11 cases, Willkie
Farr & Gallagher disclosed the following:
Question: Did you agree to any variations from, or alternatives
to, your standard or customary billing arrangements for this
engagement?
Response: No.
Question: Do any of the professionals included in this
engagement vary their rate based on the geographic location of the
bankruptcy case?
Response: No.
Question: If you represented the client in the 12 months
pre-petition, disclose your billing rates and material financial
terms for the pre-petition engagement, including any adjustments
during the 12 months pre-petition. If your billing rates and
material financial terms have changed post-petition, explain the
difference and the reasons for the difference.
Response: The firm's rates typically increase on Oct. 1 of each
year and the proposed rates reflect the adjustments that were made
effective Oct. 1, 2022, but otherwise there has been no change in
the billing rates, discounts or any other material financial terms
from the pre-petition period to the post-petition period.
Question: Has your client approved your prospective budget and
staffing plan, and, if so for what budget period?
Response: Yes. The independent directors have approved a budget
and staffing plan for the period of Sept. 7 to Nov. 30, 2022.
Brian Lennon, Esq., a partner at Willkie Farr & Gallagher,
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:
Brian S. Lennon, Esq.
Willkie Farr & Gallagher LLP
787 Seventh Avenue
New York, NY 10019
Tel: (212) 728-8000
Fax: (212) 728-8111
Email: blennon@willkie.com
About Cineworld Group
London-based Cineworld Group PLC was founded in 1995 and is the
world's second-largest cinema chain. Cineworld operates 751 sites
with 9,000 screens in 10 countries, including the Cineworld and
Picturehouse screens in the UK and Ireland, Yes Planet in Israel,
and Regal Cinemas in the US.
According to The Guardian, the Griedinger family, including Mooky's
brother and deputy chief executive, Israel, have struggled to
maintain control of the ailing business but have been forced to
reduce their stake from 28% in recent years. Cineworld's top five
investors include the Chinese Jangho Group at 13.8%, Polaris
Capital Management (7.82%), Aberdeen Standard Investments (4.98%)
and Aviva Investors (4.88%).
The London-listed Cineworld, which has run up debt of more than
$4.8 billion after losses soared during the pandemic, is pinning
its hopes on a meatier slate of movies in 2022 to bounce back from
a two-year lull.
Cineworld Group plc and 104 affiliates sought Chapter 11 protection
(Bankr. S.D. Tex. Lead Case No. 22-90168) on Sept. 7, 2022,
estimating more than $1 billion in assets and debt.
The Debtors tapped Kirkland & Ellis, LLP and Jackson Walker, LLP as
bankruptcy counsels; PJT Partners, LP as investment banker;
AlixPartners, LLP as restructuring advisor; and Ernst & Young, LLP
as tax service provider. Kroll is the claims agent.
CITY BREWING: Bank Debt Trades at 31% Discount
----------------------------------------------
Participations in a syndicated loan under which City Brewing Co LLC
is a borrower were trading in the secondary market around 69
cents-on-the-dollar during the week ended Fri., October 28, 2022,
according to Bloomberg's Evaluated Pricing service data.
The USD850 million facility is a term loan. The loan is scheduled
to mature in April 2028. As of October 28, 2022, the amount was
fully drawn and outstanding.
City Brewing Company is a large brewery located in La Crosse,
Wisconsin.
CLARUS THERAPEUTICS: Committee Seeks to Tap DLA Piper as Counsel
----------------------------------------------------------------
The official committee of unsecured creditors appointed in the
Chapter 11 cases of Clarus Therapeutics Holdings, Inc. and Clarus
Therapeutics, Inc. seeks approval from the U.S. Bankruptcy Court
for the District of Delaware to employ DLA Piper LLP (US) as its
counsel.
DLA Piper will render these services:
(a) advise the committee with respect to its rights, duties
and powers in the Chapter 11 cases;
(b) participate in in-person and telephonic meetings of the
committee and any subcommittees formed thereby, and otherwise
advise the committee with respect to its rights, powers and duties
in the Chapter 11 cases;
(c) assist and advise the committee in its consultations,
meetings and negotiations with the Debtors and all other parties in
interest regarding the administration of the Chapter 11 cases;
(d) assist the committee in analyzing the claims asserted
against and interests asserted in the Debtors, in negotiating with
the holders of such claims and interests, and in bringing,
participating in, or advising the committee with respect to
contested matters and adversary proceedings;
(e) assist with the committee's review of the Debtors'
Schedules of Assets and Liabilities, Statements of Financial
Affairs, and other financial reports;
(f) assist the committee in its analysis of, and negotiations
with, the Debtors or any third party related to, among other
things, financings, use, sale or leasing of the Debtors' assets;
(g) assist the committee in its analysis of, and negotiations
with, the Debtors or any third party related to, the negotiation,
formulation, confirmation and implementation of a Chapter 11 plan
for the Debtors, and all pleadings, agreements and documentation
related thereto;
(h) assist and advise the committee with respect to its
communications with the general creditor body regarding significant
matters in the Chapter 11 cases;
(i) represent the committee at all hearings and other
proceedings before the court and such other courts or tribunals, as
appropriate;
(j) review and analyze all complaints, motions, applications,
orders and other pleadings filed with the court, and advise the
committee with respect to its position thereon and the filing of
any response thereto;
(k) assist the committee in preparing pleadings and
applications, and pursuing or participating in adversary
proceedings, contested matters and administrative proceedings as
may be necessary or appropriate in furtherance of the committee's
interests and objectives; and
(l) perform such other legal services as may be necessary or
as may be requested by the committee.
The hourly rates of the firm's counsel and staff are as follows:
Partners $1,125 - $1,285
Associates $675 - $1,020
Paraprofessionals $360
In addition, the firm will seek reimbursement for expenses
incurred.
Dennis O'Donnell, Esq., a partner at DLA Piper LLP (US), 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:
Dennis O'Donnell, Esq.
DLA Piper LLP (US)
Telephone: (212) 335-4665
Facsimile: (917) 778-8665
Email: dennis.odonnell@dlapiper.com
About Clarus Therapeutics Holdings
Clarus Therapeutics Holdings, Inc. operates as a pharmaceutical
company focused on the commercialization of JATENZO (testosterone
undecanoate), the first oral testosterone replacement, or
testosterone replacement therapy, of its kind approved by the U.S.
Food and Drug Administration.
Clarus Therapeutics Holdings, Inc. and Clarus Therapeutics, Inc.
sought protection under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. D. Del. Case No. 22-10845) on Sept. 5, 2022. In the
petitions signed by Lawrence R. Perkins, chief restructuring
officer, the Debtors disclosed $48,940,000 in total assets and
$62,003,000 in total debts.
Judge Mary F. Walrath oversees the cases.
The Debtors tapped Goodwin Procter, LLP as bankruptcy counsel;
Potter Anderson & Corroon, LLP as local and conflicts counsel;
Raymond James & Associates, Inc. as investment banker; and
SierraConstellation Partners, LLC as restructuring advisor.
SierraConstellation CEO Lawrence R. Perkins serves as the Debtors'
chief restructuring officer. Stretto, Inc. is the claims and
noticing agent.
On Sept. 16, 2022, the U.S. Trustee for Region 3 appointed an
official committee of unsecured creditors in these Chapter 11
cases. The committee tapped DLA Piper LLP (US) as legal counsel and
Alvarez & Marsal North America, LLC as financial advisor.
CLARUS THERAPEUTICS: Committee Taps A&M as Financial Advisor
------------------------------------------------------------
The official committee of unsecured creditors appointed in the
Chapter 11 cases of Clarus Therapeutics Holdings, Inc. and Clarus
Therapeutics, Inc. seeks approval from the U.S. Bankruptcy Court
for the District of Delaware to employ Alvarez & Marsal North
America, LLC as its financial advisor.
The firm will render these services:
(a) assist in the review of the sale of the Debtors' assets;
(b) assist in the assessment and monitoring of cash flow
budgets and liquidity;
(c) attend meetings with the Debtors, their lenders and
creditors, the committee, the U.S. Trustee and other parties in
interest, as requested;
(d) assist in the review of the sales or dispositions of the
Debtors' assets;
(e) assist in the review or preparation of information and
analysis necessary for the confirmation of a plan in the Debtors'
Chapter 11 cases; and
(f) render such other general business consulting or such
other assistance as the committee or its counsel may deem
necessary.
The firm will be compensated as follows:
(a) a fixed monthly fee of $75,000;
(b) hourly rates of professionals:
a. Managing Directors $975 - $1,295
b. Directors $750 - $950
c. Associates $550 - $750
d. Analysts $425 - $525
(c) reimbursement for expenses incurred.
Richard Newman, a managing director at Alvarez & Marsal North
America, 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:
Richard Newman
Alvarez & Marsal North America, LLC
540 West Madison Street, Suite 1800
Chicago, IL 60661
Telephone: (312) 601-4220
Facsimile: (312) 332-4599
Email: rnewman@alvarezandmarsal.com
About Clarus Therapeutics Holdings
Clarus Therapeutics Holdings, Inc. operates as a pharmaceutical
company focused on the commercialization of JATENZO (testosterone
undecanoate), the first oral testosterone replacement, or
testosterone replacement therapy, of its kind approved by the U.S.
Food and Drug Administration.
Clarus Therapeutics Holdings, Inc. and Clarus Therapeutics, Inc.
sought protection under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. D. Del. Case No. 22-10845) on Sept. 5, 2022. In the
petitions signed by Lawrence R. Perkins, chief restructuring
officer, the Debtors disclosed $48,940,000 in total assets and
$62,003,000 in total debts.
Judge Mary F. Walrath oversees the cases.
The Debtors tapped Goodwin Procter, LLP as bankruptcy counsel;
Potter Anderson & Corroon, LLP as local and conflicts counsel;
Raymond James & Associates, Inc. as investment banker; and
SierraConstellation Partners, LLC as restructuring advisor.
SierraConstellation CEO Lawrence R. Perkins serves as the Debtors'
chief restructuring officer. Stretto, Inc. is the claims and
noticing agent.
On Sept. 16, 2022, the U.S. Trustee for Region 3 appointed an
official committee of unsecured creditors in these Chapter 11
cases. The committee tapped DLA Piper LLP (US) as legal counsel and
Alvarez & Marsal North America, LLC as financial advisor.
CLARUS THERAPEUTICS: Sells to Tolmar for $7.25M Plus Royalties
--------------------------------------------------------------
Drug company Clarus Therapeutics has sold its sole product for
$7.25 million in cash and tens of millions of potential future
royalties and payments.
Pursuant to the Court-approved bidding procedures, on Oct. 13,
2022, the Debtors commenced the auction for a sale of substantially
all assets. Upon the conclusion thereof, the highest and best bid
was offered by Tolmar, Inc.
Tolmar's successful bid consists of $7.25 million in cash;
milestone payments of $3 million, $5 million or $7 million if net
sales of JATENZO exceed $30 million, $50 million or $70 million,
respectively, over the next three years; royalties over the next
three years in the amount of 6% of net sales of JATENZO within the
United States up to $20 million and 10% for such net sales greater
than $20 million, with a minimum royalty payment of $500,000 for
each year of the three-year term; and assumption of cure costs for
all contracts assumed and assigned to the successful bidder.
The successful bid also commits to commercialization within 30 days
following closing, the commitment of 75 people dedicated to,
committed to, or assigned to the marketing and sales of JATENZO,
and an outside closing date of October 27, 2022.
The Debtors designated Besins Healthcare Distribution FZ-LLC as the
backup bidder. The Backup Bid's purchase price consists of $6.75
million in cash; one-time milestone payments of $3 million, $5
million or $7 million if net sales of JATENZO in the United States
exceed $30 million, $50 million or $70 million, respectively, over
the next three years; royalties over the next three years in the
amount of 6% of net sales of JATENZO within the United States up to
$20 million and 10% for such net sales greater than $20 million,
with a minimum royalty payment of $500,000 for each year of the
three year term; and assumption of Cure Costs for all Contracts
ultimately assumed and assigned to the Backup Bidder. The Backup
Bid also committed to making reasonable efforts at
commercialization within 30 days following closing and an outside
closing date of October 27, 2022.
On Oct. 26, 2022, the Court held a hearing to consider the results
of the Debtors' sale process and auction, at which it approved the
sale of substantially all of the assets of the Debtors to Tolmar
pursuant to the Asset Purchase Agreement, dated Oct. 25, 2022,
between the Debtors, Tolmar, Inc. (the "Purchaser"), and Tolmar
Holdings, Inc. (the "Guarantor").
The Debtor said Oct. 27, 2022, that all conditions precedent to the
consummation of the sale have been satisfied or waived.
Accordingly, the closing occurred on October 27, 2022.
About Clarus Therapeutics Holdings
Clarus Therapeutics Holdings, Inc., is a pharmaceutical company
dedicated to providing solutions to unmet medical needs by
advancing androgen therapies. Clarus' sole commercial asset is
JATENZO, which is approved for use by healthcare providers to treat
testosterone deficiency in men with certain medical conditions.
Clarus Therapeutics Holdings, Inc., and Clarus Therapeutics, Inc.,
sought protection under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. D. Del. Lead Case No. 22-10845) on Sept. 5, 2022. Lawrence
R. Perkins, chief restructuring officer, signed the petitions.
At the time of the filing, each of the Debtors listed $50 million
to $100 million in both assets and liabilities.
Judge Mary F. Walrath oversees the cases.
The Debtors tapped Goodwin Procter, LLP, as bankruptcy counsel;
Potter Anderson & Corroon, LLP as Delaware and conflicts counsel;
SierraConstellation Partners, LLC, as restructuring advisor; and
Raymond James & Associates, Inc., as investment banker. Stretto is
the claims and noticing agent.
CLIENT FIRST SETTLEMENT: Files Subchapter V Case
------------------------------------------------
Client First Settlement Funding LLC filed for chapter 11 protection
in the Southern District of Florida. The Debtor elected on its
voluntary petition to proceed under Subchapter V of chapter 11 of
the Bankruptcy Code.
The Debtor is engaged in the business of funding structured
settlement transactions involving insurance companies. The
Debtor's business operations are located at 17730 Scarsdale Way,
Boca Raton, FL 33496. Until Q2 of this year, the Debtor was at 301
Yamato Rd, Boca Raton, FL, which were leased premises.
The arrival of the COVID pandemic had a devastating impact on
Debtor's business. The Debtor, having a nationwide database of
customers, was reliant upon in-person engagements with customers as
well as services of the court to obtain legal testimony of
customer's full acknowledgment and understanding of the pending
transaction. The cessation of air travel and court closures
nationwide due to the COVID pandemic coupled with limited to no
capacity for remote work options ultimately halted Debtor's ability
to run its ordinary course of business. The Debtor is also
attempting to resolve a pending state court action in which the
Debtor is a defendant.
According to court filings, Client First Settlement Funding
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
Dec. 1, 2022 at 9:00 AM by TELEPHONE.
Proofs of claim are due by Jan. 4, 2023.
About Client First Settlement Funding
Client First Settlement Funding LLC specializes in purchasing and
selling structured settlements and annuities nationwide.
Client First Settlement Funding LLC filed a petition for relief
under Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr.
S.D. Fla. Case No. 22-18262) on Oct. 26, 2022. In the petition
filed by Burt Kroner, as president, the Debtor reported assets and
liabilities between $1 million and $10 million each.
Aleida Martinez-Molina has been appointed as Subchapter V trustee.
The Debtor is represented by Aaron A Wernick of Wernick Law, PLLC
CNX RESOURCES: Incurs $427.1 Million Net Loss in Third Quarter
--------------------------------------------------------------
CNX Resources Corporation filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $427.07 million on $117.06 million of total revenue and other
operating income for the three months ended Sept. 30, 2022,
compared to a net loss of $872.92 million on $(880.26) million of
total revenue and other operating income for the three months ended
Sept. 30, 2021.
For the nine months ended Sept. 30, 2022, the Company reported a
net loss of $1.32 billion on ($375.62) million of total revenue and
other operating income compared to a net loss of $1.13 billion on
($534.40) million of total revenue and other operating income for
the same period during the prior year.
As of Sept. 30, 2022, the Company had $8.63 billion in total
assets, $6.65 billion in total liabilities, and $1.97 billion in
total stockholders' equity. Cash and cash equivalents as of Sept.
30, 2022 and Dec. 31, 2021 were $1.6 million and $3.6 million,
respectively.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1070412/000107041222000054/cnx-20220930.htm
About CNX Resources
CNX Resources Corporation is an independent natural gas
development, production, and midstream company, with operations
centered in the major shale formations of the Appalachian basin.
CNX reported a net loss of $498.64 million for the year ended Dec.
31, 2021, compared to a net loss of $428.74 million for the year
ended Dec. 31, 2020.
COCRYSTAL PHARMA: Regains Compliance With Nasdaq Listing Rule
-------------------------------------------------------------
Cocrystal Pharma, Inc. received a letter from Nasdaq Stock Market
LLC on Oct. 25, 2022, notifying the Company of its compliance with
Nasdaq Listing Rule 5550(a)(2) by maintaining a minimum bid price
for its common stock of at least $1.00 for the last 10 consecutive
business days, from Oct. 11, 2022 to Oct. 24, 2022. Accordingly,
the Company has regained compliance with the Rule and the matter is
now closed.
About Cocrystal Pharma
Headquartered in Creek Parkway Bothell, WA, Cocrystal Pharma, Inc.
-- http://www.cocrystalpharma.com-- is a clinical stage
biotechnology company discovering and developing novel antiviral
therapeutics that target the replication machinery of influenza
viruses, hepatitis C viruses, noroviruses, and coronaviruses.
Cocrystal Pharma reported a net loss of $14.19 million for the year
ended Dec. 31, 2021, a net loss of $9.65 million on $2.01 million
of revenues for the year ended Dec. 31, 2020, a net loss of $48.17
million for the year ended Dec. 31, 2019, and a net loss of $49.05
million for the year ended Dec. 31, 2018. As of June 30, 2022, the
Company had $52.38 million in total assets, $2.99 million in total
liabilities, and $49.39 million in total stockholders' equity.
COMMUNITY HEALTH: Posts $42 Million Net Loss in Third Quarter
-------------------------------------------------------------
Community Health Systems, Inc. filed with the Securities and
Exchange Commission its Quarterly Report on Form 10-Q disclosing a
net loss attributable to the Company's stockholders of $42 million
on $3.02 billion of net operating revenues for the three months
ended Sept. 30, 2022, compared to net income attributable to the
Company's stockholders of $111 million on $3.11 billion of net
operating revenues for the three months ended Sept. 30, 2021.
The net loss attributable to Community Health stockholders for the
three months ended Sept. 30, 2022, compared to net income for the
same period in 2021 and the decrease in Adjusted EBITDA for the
three months ended Sept. 30, 2022, compared to the same period in
2021, is primarily due to lower net operating revenues as a result
of fewer inpatient admissions, due in part to Hurricane Ian, lower
acuity of inpatient admissions and surgeries and unfavorable
changes in payor mix, as well as continued expense pressures
including contract labor expense. While contract labor continues
to decline sequentially, it remains elevated compared to the prior
year period.
For the nine months ended Sept. 30, 2022, the Company reported a
net loss attributable to the Company's stockholders of $369 million
on $9.07 billion of net operating revenues compared to net income
attributable to the Company's stockholders of $52 million on $9.13
billion of net operating revenues for the same period during the
prior year.
The net loss attributable to Community Health stockholders for the
nine months ended Sept. 30, 2022, compared to net income for the
same period in 2021 and the decrease in Adjusted EBITDA for the
nine months ended Sept. 30, 2022, compared to the same period in
2021, is primarily due to a decline in net operating revenues from
fewer inpatient admissions, which was not fully offset by the
increase in outpatient visits and surgeries. Also, a lower acuity
of services was partially offset by improved reimbursement rates.
Wage inflation and higher costs for contract labor resulted in
increased operating expenses compared to the prior year period.
As of Sept. 30, 2022, the Company had $14.91 billion in total
assets, $16.09 billion in total liabilities, $516 million in
redeemable noncontrolling interest in equity of consolidated
subsidiaries, and a total stockholders' deficit of $1.69 billion.
Commenting on the results, Tim L. Hingtgen, chief executive officer
of Community Health Systems, Inc., said, "First, I am proud of our
healthcare teams in Florida who continuously maintained their
operations during Hurricane Ian and in the aftermath of the storm.
They provided uninterrupted and essential healthcare services,
under the most difficult circumstances, and we appreciate their
commitment to the people and communities they serve."
Hingtgen went on to say, "Against a continued backdrop of
challenging industry and environmental factors in the third
quarter, we focused our efforts on making important sequential
progress in key areas. We were successful at driving stronger
surgical volumes and also saw other volume indicators rebound
midway through the quarter. Likewise, strong expense management
programs, a significant reduction in contract labor, and other
operational adjustments helped mitigate inflationary costs
pressures. As these trends continue and we aggressively pursue our
best strategic opportunities, we expect to drive incremental growth
moving forward."
Other
Certain of the Company's facilities in Florida experienced
interruption in business and incurred additional costs as a direct
result of Hurricane Ian which made landfall in late September 2022.
The Company currently estimates that this hurricane resulted in an
estimated loss of net operating revenues together with incremental
expenses directly related to hurricane response efforts of
approximately $10 million in the aggregate on a pre-tax basis
during the three months ended Sept. 30, 2022. The impact on net
operating revenues is the direct result of the evacuations and
population disruption prior to the hurricane, as well as during the
aftermath and recovery efforts in the affected communities. This
estimated impact is prior to any insurance recoveries which the
Company may receive and which, due to the requirement to account
for such amounts as gain contingencies, will not be recognized
until future periods. Due to the timing of this event, it is
expected that the above estimate would be updated in the fourth
quarter to account for the impact of additional lost revenues and
incremental expenses for continued clean-up and remediation
efforts.
The Company completed the divestiture of one hospital on July 1,
2022 (in respect of which the Company received proceeds at a
preliminary closing on June 30, 2022), the closure of one hospital
and the near-complete closure (through the cessation of the
provision of inpatient services and substantially all outpatient
services) of one hospital during the three months ended Sept. 30,
2022. Financial and statistical data for 2022 and 2021 presented
in this press release includes the operating results of divested or
closed businesses for the periods prior to the consummation of the
respective divestiture or closure. Same-store operating results
exclude businesses divested in 2021 and 2022, businesses closed or
substantially closed in 2022 and one hospital opened in 2022.
Effective October 1, 2022, Healthtrust Purchasing Group, L.P., a
group purchasing organization in which the Company is a
noncontrolling partner, completed the sale of a majority interest
in CoreTrust Holdings, LLC to a third party. Proceeds for the sale
of interest in CoreTrust were distributed to members of HPG at a
preliminary closing on Sept. 30, 2022, and the Company received
approximately $121 million in connection with such distribution.
Completion of the transaction represents a nonrecognized subsequent
event and therefore, proceeds received by the Company are recorded
in accrued liabilities – other in the condensed consolidated
balance sheets as of Sept. 30, 2022. The Company expects to
recognize the majority of the proceeds into income during the three
months ended Dec. 31, 2022.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1108109/000156459022035470/cyh-10q_20220930.htm
About Community Health Systems Inc.
Community Health Systems, Inc. -- http://www.chs.net-- is a
healthcare company whose affiliates provide healthcare services,
developing and operating healthcare delivery systems in 47 distinct
markets across 16 states. As of Oct. 26, 2022, the Company's
subsidiaries own or lease 81 affiliated hospitals with
approximately 13,000 beds and operate more than 1,000 sites of
care, including physician practices, urgent care centers,
freestanding emergency departments, occupational medicine clinics,
imaging centers, cancer centers and ambulatory surgery centers.
* * *
As reported by the TCR on Dec. 29, 2020, S&P Global Ratings raised
its issuer credit rating on Community Health Systems Inc. to 'CCC+'
from 'SD' (selective default). S&P said, "The stable outlook
reflects our view that the company has reduced its debt and
improved its operations and cash flow such that its debt is now
more manageable; however, we believe risks to the long-term
sustainability of the capital structure remain, especially given
ongoing uncertainty stemming from the coronavirus pandemic."
CONVERGEONE HOLDINGS: $1.11B Bank Debt Trades at 33% Discount
-------------------------------------------------------------
Participations in a syndicated loan under which ConvergeOne
Holdings Inc is a borrower were trading in the secondary market
around 67 cents-on-the-dollar during the week ended Fri., October
28, 2022, according to Bloomberg's Evaluated Pricing service data.
The USD1.11 billion facility is a term loan. The loan is scheduled
to mature in January 2026. As of October 28, 2022, USD1.086
billion of the amount was drawn and outstanding.
ConvergeOne Holdings, Inc., operates as a holding company. The
Company, through its subsidiaries, provides managed cloud, cyber
security, enterprises networking, data center, application and
software development, security infrastructure, and hosted
collaboration solutions.
CONVERGEONE HOLDINGS: Bank Debt Trades at 43% Discount
------------------------------------------------------
Participations in a syndicated loan under which ConvergeOne
Holdings Inc is a borrower were trading in the secondary market
around 57 cents-on-the-dollar during the week ended Fri., October
28, 2022, according to Bloomberg's Evaluated Pricing service data.
The USD275 million facility is a term loan. The loan is scheduled
to mature in January 2027. As of October 28, 2022, the amount was
fully drawn and outstanding.
ConvergeOne Holdings, Inc. operates as a holding company. The
Company, through its subsidiaries, provides managed cloud, cyber
security, enterprises networking, data center, application and
software development, security infrastructure, and hosted
collaboration solutions.
CORELOGIC INC: Bank Debt Trades at 34% Discount
-----------------------------------------------
Participations in a syndicated loan under which CoreLogic Inc is a
borrower were trading in the secondary market around 66
cents-on-the-dollar during the week ended Fri., October 28, 2022,
according to Bloomberg's Evaluated Pricing service data.
The USD750 million facility is a term loan. The loan is scheduled
to mature in June 2029. As of October 28, 2022, the amount was
fully drawn and outstanding.
CoreLogic, Inc. is an Irvine, CA-based corporation providing
financial, property, and consumer information, analytics, and
business intelligence. The company analyzes information assets and
data to provide clients with analytics and customized data
services. Wikipedia
CYPRESS HILLS: Seeks Approval to Hire Shiryak as Bankruptcy Counsel
-------------------------------------------------------------------
Cypress Hills NYC, LLC seeks approval from the U.S. Bankruptcy
Court for the Eastern District of New York to employ Shiryak,
Bowman, Anderson, Gill & Kadochnikov, LLP as its legal counsel.
The firm will render these services:
(a) assist the Debtor in administering the Debtor's Chapter 11
case;
(b) make such motions and court appearances or take such
action as may be appropriate or necessary under the Bankruptcy
Code;
(c) take such steps as may be necessary for the Debtor to
marshal and protect the estate's assets;
(d) negotiate with the Debtor's creditors in formulating a
plan of reorganization in this case;
(e) draft and prosecute the confirmation of the Debtor's plan
of reorganization in this case; and
(f) render such additional services as the Debtor may require
in this case.
The hourly rates of the firm's counsel and staff are as follows:
Attorneys $450
Clerks and Paraprofessionals $175
Prior to the petition date, the firm received a flat fee payment of
$5,000 from the Debtor.
As disclosed in court filings, Shiryak neither holds nor represents
an adverse interest to the Debtor's estate.
The firm can be reached through:
Btzalel Hirschhorn, Esq.
Shiryak, Bowman, Anderson, Gill & Kadochnikov, LLP
8002 Kew Gardens, Suite 600
Kew Gardens, NY 11415
Telephone: (718) 263-6800
Facsimile: (718) 520-9401
Email: Bhirschhorn@sbagk.com
About Cypress Hills NYC
Cypress Hills NYC, LLC filed a Chapter 11 bankruptcy petition
(Bankr. E.D.N.Y. Case No. 22-42218) on Sept. 14, 2022, with up to
$1 million in both assets and liabilities. Judge Elizabeth S. Stong
oversees the case.
Shiryak, Bowman, Anderson, Gill & Kadochnikov, LLP and Singer &
Falk CPA's serve as the Debtor's legal counsel and accountant,
respectively.
DIMPLES DENTAL: Taps The Law Firm of MorrisMargulies as Counsel
---------------------------------------------------------------
Dimples Dental Suite, PC seeks approval from the U.S. Bankruptcy
Court for the District of Columbia to employ The Law Firm of
MorrisMargulies, LLC as its legal counsel.
The firm will render these services:
(a) represent the Debtor in its Chapter 11 Subchapter V case
and advise the Debtor as to its rights, duties and powers;
(b) prepare legal papers;
(c) represent the Debtor at all hearings, meeting of
creditors, conferences, trials, and other proceedings in this case;
and
(d) perform such other legal services as may be necessary in
connection with the Debtor's Chapter 11 case.
Pursuant to the agreement, the Debtor paid the firm a retainer of
$20,262, which is being held in escrow.
Frank Morris II, Esq., an attorney at The Law Firm of
MorrisMargulies, 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:
Frank Morris II, Esq.
The Law Firm of MorrisMargulies, LLC
8201 Corporate Drive, Suite 260
Landover, MD 20785
Telephone: (301) 731-1000
Facsimile: (301) 731-1206
Email: frankmorrislaw@yahoo.com
About Dimples Dental Suite
Dimples Dental Suite, PC filed a voluntary petition for relief
under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr.
D.D.C. Case No. 22-00191) on Oct. 19, 2022, with up to $500,000 in
both assets and liabilities. Angela Shortall has been appointed as
Subchapter V trustee.
Judge Elizabeth L. Gunn oversees the case.
Frank Morris II, Esq., at The Law Firm of MorrisMargulies, LLC
serves as the Debtor's counsel.
DYNAMETAL TECHNOLOGIES: Gets Approval to Hire Liquidating Agent
---------------------------------------------------------------
Dynametal Technologies, Inc. received approval from the U.S.
Bankruptcy Court for the Western District of Tennessee to employ
PPL Group, LLC and Detroit Process Machinery, Inc. as liquidating
agent.
The Debtor needs a liquidating agent to engage in sales of
equipment via privately negotiated sales with an auction of the
remaining assets except those assets specifically excepted from the
Asset Liquidation Agreement.
Alex Mazer, president of PPL Group, and Tom Suhy, president of
Detroit Process Machinery, disclosed in court filings that the
firms are "disinterested persons" as that term is defined in
Section 101(14) of the Bankruptcy Code.
The firms can be reached through:
Alex Mazer
PPL Group, LLC
105 Revere Drive, Suite C
Northbrook, IL 60062
Telephone: (224) 927-5329
Email: alex@pplgroupllc.com
- and -
Tom Suhy
Detroit Process Machinery, Inc.
Bloomfield Hills, MI 48304
Telephone: (248) 251-5692
About Dynametal Technologies
Dynametal Technologies, Inc., an employee-owned powder metal parts
manufacturer, sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Tenn. Case No. 22-10831) on Aug. 1,
2022, with $7.9 million in total assets and $4.4 million in total
liabilities. Robert L. Nolan, president of Dynametal Technologies,
signed the petition.
Judge Jimmy L. Croom oversees the case.
The Debtor tapped Steven N. Douglass, Esq., at Harris Shelton, PLLC
as counsel; and PPL Group, LLC and Detroit Process Machinery, Inc.
as liquidating agent.
EAST/ALEXANDER HOLDINGS: M360 Move to Dismiss the Appeal Granted
----------------------------------------------------------------
Chief District Judge Elizabeth A. Wolford grants the motion to
dismiss filed by M360 Community Development Fund, LLC, thereby
dismissing the appealed case EAST/ALEXANDER HOLDINGS, LLC,
Appellant, DECISION AND ORDER v. M360 COMMUNITY DEVELOPMENT FUND
LLC and WENDY L. DWORKIN, ESQ., Appellees, Case No. 6:22-CV-06242
EAW, (W.D.N.Y.) pursuant to Bankruptcy Rule 8003(a)(2). The Clerk
of Court is directed to close the case.
M360 is East/Alexander Holdings LLC's ("Debtor") largest secured
creditor and holds "a mortgage and blanket lien on all assets to
secure a debt of approximately $17 million. M360 commenced a state
court foreclosure action in February of 2021. But on April 1, 2022,
the Debtor filed a Chapter 11 bankruptcy petition. Wendy L.
Dworkin, Esq. was appointed as a receiver in the state court
foreclosure action in January of 2022. In April 2022, Dworkin filed
a motion to excuse compliance with 11 U.S.C. section 543(a) and
(b), while M360 filed a motion for relief from the automatic
bankruptcy stay. On May 12, 2022, the bankruptcy court entered a
Decision and Order granting the Receiver's Motion and the Stay
Relief Motion. The Debtor filed this appeal.
The Court determines, however, that it has been five months since
the appeal was filed, and the Debtor has not complied with the
clear requirements of the Bankruptcy Rules, thereby leaving the
matter at a standstill. The Court finds that the Debtor was put on
notice, via the filing of M60's motion, that dismissal of its
appeal for failure to perfect or prosecute was under consideration.
In fact, the Debtor was also afforded an opportunity to be heard,
yet failed to respond to the motion to dismiss or to otherwise take
any steps to perfect or prosecute. The Court concludes that the
record amply supports the conclusion that Appellant has—at a
minimum—acted with a pattern of "negligence, and indifference."
The Court further finds the Debtor has shown no indication that it
intends to participate in this appeal, including by failing to take
the basic and mandatory step of filing a designation and statement
or even to seek an extension of the time in which to do so. And, as
the Second Circuit has explained, "a bankruptcy appeal cannot
proceed without a Designation and Statement."
Lastly, the Court considers M360 wishes to move forward with the
state court foreclosure action, and has been prejudiced by the
"lack of resolution with respect to the appeal."
A full-text copy of the Decision dated Oct. 27, 2022, is available
at https://tinyurl.com/43dzu6yk from Leagle.com.
About East/Alexander Holdings
East/Alexander Holdings LLC, a Single Asset Real Estate (as defined
in 11 U.S.C. Section 101(51B)), sought Chapter 11 bankruptcy
protection (Bankr. W.D.N.Y. Case No. 22-20151) on April 2, 2022. In
the petition filed by Louis R. Masaschi, as managing member,
East/Alexander Holdings LLC listed estimated assets between $1
million and $10 million and estimated liabilities between $10
million and $50 million.
Judge Paul R. Warren oversees the case.
David H. Ealy, Esq., at Cristo Law Group, LLC, is the Debtor's
counsel.
ELECTRIC LAST: Trustee's $100-Mil. Sale of All Assets Approved
--------------------------------------------------------------
Judge Mary F. Walrath of the U.S. Bankruptcy Court for the District
of Delaware authorized David W. Carickhoff, the chapter 7 trustee
of the bankruptcy estates of Electric Last Mile Solutions, Inc. and
affiliates, to sell substantially all of the Debtors' assets to
Mullen Automotive, Inc., for alomost $100 million.
The Purchase Agreement and the Sale Transaction contemplated
thereunder are approved.
The Trustee is authorized to implement the Purchase Agreement and
effectuate the Sale Transaction.
The Sale is free and clear of all Liens, with all such Liens
attaching to the Net Sale Proceeds.
The Trustee is authorized to (a) transfer, assume, assign and sell
to the Buyer, effective and conditioned upon the Closing, the
Assumed Contracts and (b) execute and deliver to the Buyer such
documents or other instruments that may be reasonably necessary or
appropriate to
assign and transfer the Assumed Contracts to it.
For the avoidance of doubt, nothing in the Sale Order will
constitute a determination of rights relating to, or ownership of,
approximately 700 units manufactured by Liuzhou Wuling Automobile
Industry Co., Ltd. and any property related thereto, and, upon the
filing of a Cure Objection or Assumption and Assignment Objection
by Wuling, absent agreement between Wuling, the Trustee and the
Buyer, any transfer of an Assumed Contract with Wuling will be
subject to a separate order of the Court which may supersede the
terms of the Order.
The 14-day stay otherwise imposed by Bankruptcy Rules 6004(h),
6006(d) and 7062 is waived, and the Sale Order will be effective
immediately upon entry.
About Electric Last Mile Solutions
Electric Last Mile Solutions, Inc. (Nasdaq: ELMS) has been focused
on defining a new era in which commercial vehicles run clean as
connected and customized solutions that make businesses more
efficient and profitable. ELMS' first vehicle, the Urban Delivery,
was anticipated to be the first Class 1 commercial electric
vehicle
in the U.S. market. On the Web: http://www.electriclastmile.com/
Troy, Michigan-based Electric Last Mile Solutions, Inc., wholly
owns Electric Last Mile, Inc., the operating subsidiary.
Electric Last Mile Solutions and Electric Last Mile Inc. filed for
Chapter 7 bankruptcy (Bankr. D. Del. Case No. 22-10537 and
22-10538) on June 14, 2022.
Electric Last Mile Inc. estimated $50 million to $100 million in
assets and liabilities as of the bankruptcy filing. Electric Last
Mile Solutions estimated less than $50,000 in assets and debt.
The Debtors' counsel:
Kara Hammond Coyle
Young Conaway Stargatt & Taylor LLP
Tel: (302) 571-6600
E-mail: bankfilings@ycst.com
ESJ TOWERS: Taps RL Legal Consulting Services as Special Counsel
----------------------------------------------------------------
ESJ Towers, Inc., doing business as Mare St. Clair Hotel, seeks
approval from the U.S. Bankruptcy Court for the District of Puerto
Rico to employ RL Legal Consulting Services, LLC as special
counsel.
RL Legal Consulting Services will replace Luis E. Vivoni Lopez,
Esq., as counsel of the Debtor in the case styled Consejo de
Titulares del Condominio ESJ Towers, ESJ Towers, Inc., Attenure
Holdings Trust 1 y HRH Property Holdings LLC v. Chubb Insurance
Company of Puerto Rico, Civil Case No. CA2019CV03427, in the Court
of First Instance of Puerto Rico, Superior Section of Carolina.
Ramon Luis Nieves, Esq., principal at RL Legal, will be paid an
hourly fee of $175.
Mr. Nieves 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:
Ramon Luis Nieves, Esq.
RL Legal Consulting Services, LLC
Ave. Hostos, Ste. 430
Urb. El Vedado
San Juan, PR 00918
Telephone: (787) 607-7093
Email: ramonluisnieves@rlnlegal.com
About ESJ Towers
ESJ Towers, Inc. owns the ESJ Towers in Carolina, P.R. The luxury
apartments and condo units at ESJ Towers have direct access to Isla
Verde Beach, widely considered one of the best in Puerto Rico.
ESJ sought protection under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. D.P.R. Case No. 22-01676) on June 10, 2022, with as much as
$50 million in both assets and liabilities. ESJ President Keith St.
Clair signed the petition.
Judge Enrique S. Lamoutte Inclan oversees the case.
The Debtor tapped Charles A. Cuprill, Esq., at Charles A. Cuprill,
PSC Law Offices as legal counsel; Ramon Luis Nieves, Esq., at RL
Legal Consulting Services, LLC as special counsel; Dage Consulting
CPAS, PSC as financial advisor; and De Angel & Compania, CPA, LLC
as auditor.
The U.S. Trustee for Region 21 appointed an official committee of
unsecured creditors on Sept. 12, 2022. MRO Attorneys at Law, LLC
and Dage Consulting CPAS, PSC serve as the committee's legal
counsel and financial advisor, respectively.
EXELA INTERMEDIATE: Bank Debt Trades at 31% Discount
----------------------------------------------------
Participations in a syndicated loan under which Exela Intermediate
LLC is a borrower were trading in the secondary market around 68.6
cents-on-the-dollar during the week ended Fri., October 28, 2022,
according to Bloomberg's Evaluated Pricing service data.
The USD403 million facility is a term loan. The loan is scheduled
to mature in July 2023. As of October 28, 2022, USD78 million of
the amount was drawn and outstanding.
Exela Intermediate LLC / Exela Finance Inc operates as a dual
issuer and special purpose entity. The Company was formed for the
purpose of issuing debt securities to repay existing credit
facilities, refinance indebtedness, and for acquisition purposes.
FARRAGUT HEALTH: Taps Tarpy, Cox, Fleishman & Leveille as Counsel
-----------------------------------------------------------------
Farragut Health Care Center, LP seeks approval from the U.S.
Bankruptcy Court for the Eastern District of Tennessee to employ
Tarpy, Cox, Fleishman & Leveille, PLLC to handle its Chapter 11
case.
The hourly rates of the firm's counsel and staff are as follows:
Ed Shultz, Esq. $350
Thomas Leveille, Esq. $350
Taylor Drinnen, Esq. $250
Other Attorneys $350
Associates $75 - $95
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received an initial retainer of $10,000 from the Debtor,
plus the filing fee of $1,738.
Lynn Tarpy, Esq., an attorney at Tarpy, Cox, Fleishman & Leveille,
disclosed in a court filing that the firm is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Lynn Tarpy, Esq.
Tarpy, Cox, Fleishman & Leveille, PLLC
1111 N. Northshore, Suite N-290
Knoxville, TN 37919
Telephone: (865) 588-1096
About Farragut Health Care Center
Farragut Health Care Center LP sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. E.D. Tenn. Case No. 22-31595)
on Oct. 20, 2022, with up to $50 million in assets and up to $10
million in liabilities. Judge Suzanne H. Bauknight oversees the
case.
Lynn Tarpy, Esq., at Tarpy, Cox, Fleishman & Leveille, PLLC serves
as the Debtor's legal counsel.
FAYETTE MEMORIAL: Connersville Asset Auction via Krueckeberg OK'd
-----------------------------------------------------------------
Judge Jeffrey J. Graham of the U.S. Bankruptcy Court for the
Southern District of Indiana authorized Fayette Memorial Hospital
Association, Inc.'s auction sale of the property commonly known as
3135 Virginia Avenue, Connersville, Indiana 47331, pursuant to the
terms of the Auction Listing Agreement with Krueckeberg Auction &
Realty LLC, doing business as Key Auctioneers.
The Debtor, acting through the Plan Administrator, is authorized
and directed to fully perform all terms and conditions of the
Auction Agreement, to execute such documents as may be necessary to
consummate the sale transaction described therein, and to take any
and all further action as may be necessary or appropriate in
performing the obligations of the Debtor under the Auction
Agreement.
The Sale will be free and clear of Claims.
The Order is a final order (as opposed to an interlocutory order)
and is enforceable upon entry.
The Auctioneer will remit the net proceeds of the sale of the
Property to the Debtor within 14 days following the closing date
and the Debtor will file a Report of Sale within 14 days after the
closing date.
The Debtor, the Auctioneer, and the Plan Administrator are
authorized to take all actions necessary to effectuate the relief
granted pursuant to the Order.
The Sale Hearing was held on Oct. 13, 2022.
About Fayette Memorial Hospital Association
Founded in 1913, Fayette Memorial Hospital Association, Inc. --
https://www.fayetteregional.org/ -- is a multi-faceted health care
organization in Connersville, Indiana. It offers ambulatory care,
cancer care, care pavilion, dermatology, diagnostic imaging,
emergency care, express care, facial and cosmetic procedures,
hospice care, laboratory services, pediatrics, physical therapy
and
rehabilitation, among other services.
Fayette Memorial Hospital Association sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Ind. Case No.
18-07762) on Oct. 10, 2018. In the petition signed by CEO Randall
White, the Debtor estimated assets of $10 million to $50 million
and liabilities of $10 million to $50 million. The case is
assigned to Judge Jeffrey J. Graham. The Debtor tapped Fultz
Maddox Dickens PLC as its legal counsel.
The Office of the U.S. Trustee appointed an official committee of
unsecured creditors. The committee tapped Fox Rothschild LLP as
its legal counsel.
The official committee of unsecured creditors was appointed on
Dec. 5, 2018. On Feb. 19, 2021, the Court confirmed the Joint
Plan of Liquidation by which it confirmed the Immaterially
Modified Joint Chapter 11 Plan of Liquidation. Pursuant to the
Confirmation Order and the Plan, the Committee was dissolved, and
Bernadette Barron of Barron Business Consulting, Inc., was
appointed as the Plan Administrator.
FLX ENTERPRISES: Seeks to Tap Orville & McDonald Law as Counsel
---------------------------------------------------------------
FLX Enterprises of Fingerlakes, LLC seeks approval from the U.S.
Bankruptcy Court for the Northern District of New York to employ
Orville & McDonald Law, PC as its legal counsel.
The firm will render these services:
(a) advise the Debtor regarding its powers and duties in the
continued operation of its business and in the management of its
property;
(b) take necessary action to avoid liens against the Debtor's
property, remove restraints against its property and such other
actions to remove any encumbrances or liens which are avoidable;
(c) take necessary action to enjoin and stay until final
decree herein any attempts by secured creditors to enforce liens
upon the Debtor's property;
(d) represent the Debtor in any proceedings which may be
instituted in this court by creditors or other parties during this
proceeding;
(e) prepare legal papers; and
(f) perform all other legal services for the Debtor.
The hourly rates of the firm's counsel and staff are as follows:
Zachary D. McDonald $250
Peter A. Orville $350
Non-lawyer Staff $125
In addition, the firm will seek reimbursement for expenses
incurred.
The firm also requires a retainer in the amount of $5,000 from the
Debtor.
Zachary McDonald, Esq., an attorney at Orville & McDonald Law,
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:
Zachary D. McDonald, Esq.
Orville & McDonald Law, PC
30 Riverside Dr.
Binghamton, NY 13905
Telephone: (607) 770-1007
About FLX Enterprises of Fingerlakes
FLX Enterprises of Fingerlakes, LLC filed a petition under Chapter
11, Subchapter V of the Bankruptcy Code (Bankr. N.D.N.Y. Case No.
22-30701) on Oct. 24, 2022, with up to $1 million in assets and up
to $500,000 in liabilities. Francis J. Brennan has been appointed
as Subchapter V trustee.
Judge Wendy A. Kinsella oversees the case.
Zachary D. McDonald, Esq., at Orville & McDonald Law, PC serves as
the Debtor's counsel.
FOX SUBACUTE: Amends Plan to Include PeoplesBank Unsecured Claim
----------------------------------------------------------------
Fox Subacute at Mechanicsburg, LLC ("Mechanicsburg") and Fox
Subacute at South Philadelphia, LLC ("South Philadelphia")
(individually a "Debtor" and collectively the "Debtors" or "Fox
Subacute") submitted a Second Amended Disclosure Statement in
support of the Joint Plan of Reorganization dated October 27,
2022.
Under the Plan, the Equity Holders are placing $125,000.00 into the
Debtors as $75,000.00 into Mechanicsburg and $50,000.00 into South
Philadelphia, which the Debtors believe constitutes new value. This
Equity Infusion is specifically set forth in the Plan.
In the event insufficient votes occur from the Class 5 Claim
holders to confirm the Plan, the Debtors believe the Plan can
nonetheless be confirmed. The Debtors can do several things in
order to cause the Plan to meet the requirements of Section 1129 of
the Bankruptcy Code. Among other items, the Debtors' Equity Holders
are placing new value into the Plan as the Equity Infusion to cause
the Plan to be partially funded.
Also, as set forth in the Plan, and, as is necessary, in a Motion
to Confirm, the Debtors, following voting on the Plan, may expose
the equity of any of the cases that do not gain sufficient votes
from a class of Unsecured Creditors to the market by allowing other
entities to bid on the equity. If the equity is exposed to the
market, a requirement of such expose may be that any obligation or
guarantee by any of the current Equity Holders, including James
Foulke, of any Debtors' obligations to creditors be removed or
replaced by the new Equity Holder.
Class 4 consists of the Secured Claim of PeoplesBank. During the
Cases, the Debtors have been paying all interest owed on the
PeoplesBank Line of Credit. The Debtors also began making payments
of $50,000.00 per month and a lump sum payment of $700,000.00. All
such lump sum payments are to be applied, for the most part, to
principal. The debt is now approximately $2,600,000.00.
The New Peoples Secured Claim will be paid in principal payments of
$50,000.00 each, plus interest at the rate Wall Street Prime plus
1.5% per annum. Payments will begin 30 days after the Effective
Date. Further, the New PeoplesBank Secured Claim will also be paid
by payments by Warrington and Clara Burke, particularly following
the winddown of operations of each of Warrington and Clara Burke.
Warrington is shut down and Clara Burke may end operations. These
payments could lower the principal debt to PeoplesBank to under
$2,000,000.00. Notwithstanding such provisions, the New Peoples
Secured Claim will balloon and become due 60 months after the
Effective Date.
The Classes 5A and 5B general unsecured creditors include all
creditors not otherwise classified under the Plan. Beginning 3
months after the Effective Date, general unsecured creditors will
receive 26.67% of each allowed Class 5A and 5B Claims, payable in 4
equal annual installments of 6.6% each.
In addition to the payments to be made as set forth in this
Disclosure Statement, the Equity Holders of each of the Debtors
will be making an Equity Infusion as new value totaling
$125,000.00. Of the $125,000.00 sum, $75,000.00 will be attributed
to Mechanicsburg and $50,000.00 will be attributed to South
Philadelphia. This Equity Infusion will occur on or before the
Effective Date. Distribution to unsecured creditors of
Mechanicsburg and South Philadelphia will occur within 15 days
after the Effective Date.
Class 5C consists of the PeoplesBank unsecured Claim. The Class 5C
Claim is not receiving any direct payment from the Debtors, but
rather payments will occur from FSA Realty Associates under the FSA
Loan Documents. In the event of a default under the FSA Loan
Documents, or a default under the Plan as to the PeoplesBank Class
4 Claim, or the expiration of time for making distribution to Class
5A, Class 5B and Class 6, general unsecured creditors under the
Plan, without payment as required under the Plan or without an
extension thereof, PeoplesBank retains the right to proceed against
Mechanicsburg.
The Personal Injury Claims of any Class 6A or Class 6B Claim holder
resulting from Personal Injury Suits shall not receive a
distribution as a Class 5 Claim holder, but rather the payment on
account of any Personal Injury Suit shall be as set forth in any
Orders regarding the automatic stay. The Debtors, together with
Clara Burke and Warrington, intend to set aside the sum of
$250,000.00 to be held for payment of deductible amounts which may
be owed by the Debtors and Clara Burke and Warrington for personal
injury claims and the costs thereof and deductibles.
Class 7 consists of Equity Holder. The Equity Holders will cause
the Equity Infusion of $125,000.00 to be paid on or before the
Effective Date. These funds will be used for distribution to Class
5A and Class 5B unsecured creditors with $75,000.00 paid to the
Class 5A creditors and $50,000.00 paid to the Class 5B creditors.
Each Equity Holder will retain any equity which each has in the
particular Debtors post-Petition in the same percentages as exist
pre-Petition. Each Equity Holder shall retain the right to cause
cancelation of the equity and reissuance of new equity in each
Debtor in the same amount and percentage as exists pre-Petition.
Each Debtor will continue to operate its Skilled Nursing Facility.
The Debtors believe that its current operations are such, and as
set forth in the projections, that it can fund the payments
required under the Plan. It is believed that cash flow projections
set forth that the Debtors can fund its operations as well as fund
the payments under the Plan.
A full-text copy of the Second Amended Disclosure Statement dated
October 27, 2022, is available at https://bit.ly/3STdMmw from
PacerMonitor.com at no charge.
Counsel for the Debtor:
Robert E. Chernicoff, Esq.
CUNNINGHAM, CHERNICOFF & WARSHAWSKY, P.C.
2320 North Second Street, P.O. Box 60457
Harrisburg, PA 17106-0457
Tel: (717) 238-6570
About Fox Subacute at Mechanicsburg, LLC
Fox Subacute At Mechanicsburg, LLC is a skilled nursing facility in
Pennsylvania that specializes in pulmonary, neurological, and
rehabilitative care for patients with degenerative neurological and
neuromuscular disease; and pulmonary care and ventilator
requirements with an emphasis on vent weaning. Its facilities are
located in Plymouth Meeting, Warrington, Mechanicsburg and
Philadelphia, Pa., and are licensed by the PA Department of
Health.
On Nov. 1, 2019, Fox Subacute at Mechanicsburg and its affiliates
sought Chapter 11 protection (Bankr. M.D. Pa. Lead Case No.
19-04714). Fox Subacute at Mechanicsburg was estimated to have $1
million to $10 million in assets and liabilities as of the
bankruptcy filing.
Judge Henry W. Van Eck oversees the cases.
The Debtors tapped Cunningham, Chernicoff & Warshawsky, P.C. as
their legal counsel, Kennedy P.C. as special counsel, Isdaner &
Company, LLC as accountant, and Three Twenty-One Capital Partners,
LLC as investment banker.
The Office of the U.S. Trustee appointed an official committee of
unsecured creditors on Dec. 11, 2019. The committee is represented
by Flaster/Greenberg P.C.
FREE SPEECH SYSTEMS: Drops Vendor Ties With Jones Amid Probe
------------------------------------------------------------
James Nani of Bloomberg Law reports that Infowars' bankrupt parent
company has cut ties with a credit card payment vendor, whose ties
to the right wing conspiracy site have come under scrutiny in its
Chapter 11 case.
Alex Jones' Free Speech Systems LLC said in a hearing that it ended
the contract with Auriam Services and has turned to another,
cheaper credit card processor.
The change comes after a bankruptcy trustee was tapped last month
to investigate Free Speech's finances and insider relationships.
The probe includes looking into Free Speech's agreement with its
credit card processor.
About Free Speech Systems
Free Speech Systems LLC is a broadcast media production and
distribution company that provides broadcasting aural programs by
radio to the public. Free Speech Systems is a family-run business
founded by Alex Jones.
FSS is presently engaged in the business of producing and
syndicating Jones' radio and video talk shows and selling products
targeted to Jones' loyal fan base via the Internet. Today, FSS
produces Alex Jones' syndicated news/talk show (The Alex Jones
Show) from Austin, Texas, which airs via the Genesis Communications
Network on over 100 radio stations across the United States and via
the internet through websites including Infowars.com.
Due to the content of Alex Jones' shows, Jones and FSS have faced
an all-out ban of Infowars from mainstream online spaces. Shunning
from financial institutions and banning Jones and FSS from major
tech companies began in 2018.
Conspiracy theorist Alex Jones has been sued by victims' family
members over Jones' lies that the 2012 Sandy Hook Elementary School
shooting was a hoax.
Jones' InfoW LLC and affiliates, IWHealth, LLC and Prison Planet
TV, LLC, filed petitions under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. S.D. Texas Lead Case No. 22-60020) on April
18, 2022.
The Debtors agreed to the dismissal of the Chapter 11 cases in June
2022 after the Sandy Hook victim families dismissed the three
bankrupt companies from their lawsuits.
Free Speech Systems filed a voluntary petition for relief under
Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex.
Case No. 22-60043) on July 29, 2022. In the petition filed by W.
Marc Schwartz, as chief restructuring officer, the Debtor reported
assets and liabilities between $50 million and $100 million.
Melissa A Haselden has been appointed as Subchapter V trustee.
Raymond William Battaglia, of Law Offices of Ray Battaglia, PLLC,
is the Debtor's counsel.
GIGA-TRONICS INC: Receives $300K Advance From BitNile Holdings
--------------------------------------------------------------
Giga-tronics Incorporated received an advance of $300,000 from
BitNile Holdings, Inc. on Oct. 20, 2022.
The terms of the Advance, including the repayment date and interest
rates and other potential terms, as applicable, are to be
determined by the parties at a future date, the Company said in a
Form 8-K filed with the Securities and Exchange Commission.
About Giga-tronics Inc.
Headquartered in Dublin, California, Giga-Tronics Inc. is a
publicly held company, traded on the OTCQB Capital Market under
the symbol "GIGA". Giga-tronics -- http://www.gigatronics.com--
produces RADAR filters and Microwave Integrated Components for use
in military defense applications as well as sophisticated RADAR and
Electronic Warfare (RADAR/EW) test products primarily used in
electronic warfare test & emulation applications.
Giga-Tronics reported a net loss of $2.72 million for the year
ended March 26, 2022, compared to a net loss of $393,000 for the
year ended March 27, 2021. As of March 26, 2022, the Company had
$8.06 million in total assets, $4.33 million in total liabilities,
and $3.73 million in total shareholders' equity.
San Ramon, California-based Armanino LLP, the Company's auditor
since 2018, issued a "going concern" qualification in its report
dated June 24, 2022, citing that the Company's significant
recurring losses and accumulated deficit raise substantial doubt
about its ability to continue as a going concern.
GOTO GROUP: Bank Debt Trades at 34% Discount
--------------------------------------------
Participations in a syndicated loan under which GoTo Group Inc is a
borrower were trading in the secondary market around 66
cents-on-the-dollar during the week ended Fri., October 28, 2022,
according to Bloomberg's Evaluated Pricing service data.
The USD2.25 million facility is a term loan. The loan is scheduled
to mature in August 2027. As of October 28, 2022, the amount was
fully drawn and outstanding.
GoTo, formerly LogMeIn Inc., is a flexible-work provider of
software as a service and cloud-based remote work tools for
collaboration and IT management.
GRAVITY HOLDINGS: Files 2nd Subchapter V Bankruptcy
---------------------------------------------------
Gravity Holdings Inc. filed for chapter 11 protection in the
Western District of Louisiana on Oct. 26, 2022. The Debtor elected
on its voluntary petition to proceed under Subchapter V of chapter
11 of the Bankruptcy Code.
The Debtor has operated as the owner of 34 duplex units located in
the City of Alexandria, Louisiana, since 2017.
The Debtor previously filed a case under Subchapter V in this court
in November 2020, and, at that time, BOM Bank and First Guaranty
Bank were its primary creditors. Its Plan was confirmed by order
of the Court and a final decree was entered. Accordingly, both BOM
Bank and First Guaranty Bank have information concerning the assets
and management of the debtor.
The assets of the debtor subject to the lien of BOM Bank are 17
duplex housing units located on Mansour Drive in Alexandria,
Louisiana, as well as one located on Pelican Drive in Pineville,
Louisiana. The assets of the debtor subject to the lien of First
Guaranty Bank are 17 duplex housing units located on Mansour Drive
in Alexandria, Louisiana.
The Debtor does not believe there is any significant amount of
depreciation of these properties, as they are regularly inspected
and maintained.
In the new Chapter 11 case, Gravity Holdings 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. 21, 2022, at 10:00 AM at 341 Meeting - Telephone Conference,
Sikes. UST Line: 1-866-762-6425, Participant Code: 8530051#) .
About Gravity Holdings
Gravity Holdings, Inc., was created as a mid-level property
management company in 2015. Gravity Holdings retains and works
with ground-level property management companies that have direct
contact with tenants and oversee day-to-day operations of property.
It is owned by David Blumenstock, who acts as the President and
sole member of the board of directors as well as sole shareholder.
Gravity Holdings filed a petition for relief under Subchapter V of
Chapter 11 of the Bankruptcy Code (Bankr. W.D. La. Case No.
22-80538) on Oct. 26, 2022. In the petition filed by David
Blumenstock, as president and secretary, the Debtor reported assets
and liabilities between $500,000 and $1 million each.
The Debtor is represented by Thomas R. Willson of Rocky Willson.
Lucy G. Sikes has been appointed as Subchapter V trustee.
GREENPOINT TACTICAL: Freeborn & Peters Fee Application Approved
---------------------------------------------------------------
Chief Bankruptcy Judge G. Michael approves the Fourth and Final Fee
Application of Freeborn & Peters LLP, the counsel for the Official
Committee of Equity Security Holders of Greenpoint Tactical Income
Fund LLC, thereby awarding the firm a final compensation of
$1,143,444 for services rendered and $15,633 for reimbursement of
expenses incurred for the period of Dec. 9, 2019, through May 19,
2022.
The Reorganized Debtors filed a limited objection, requesting that
the Court disapprove a total of $80,621 in fees and costs incurred
in connection with two of the Committee's pursuits: (1) a motion
for derivative standing to which $58,723 in fees is attributed and
(2) an objection to Duff & Phelps LLC's unsecured claim to which
$21,898 in fees and costs is attributed.
The Committee's derivative standing motion.
The Committee's motion for derivative standing requested permission
to commence on Greenpoint's behalf damages claims against its
managers and insiders Nohl, Hull, and Christopher Houden, Sr. "Many
of the allegations of mismanagement, misrepresentations, and
self-dealing appeared to overlap with allegations made by the SEC
in its action pending in the Western District of Wisconsin." The
court denied the motion without prejudice, however, in recognition
that future developments might justify the Committee's pursuit of
the derivative claims.
In their objection, the Reorganized Debtors argue that the
Committee should have known before pursuing the motion that it
would not benefit the estate, particularly given that Greenpoint
had proposed a plan that paid creditors in full and preserved
equity.
The Court overrules the objection saying that the Committee's
filing of the derivative standing motion was a reasonable ex ante
effort to maximize the value of the estate. The Court finds that
the Committee's derivative standing motion, which sought to
maximize equity's interest in the estate by liquidating the
estate's claims against Greenpoint's managers and other
non-debtors, might have been a reasonable litigation strategy if
the Committee could have expected a substantial net recovery. If
successful, the derivative claims might have proved a source of
funds to be distributed to investors through a plan of
reorganization.
The Committee's objection to Duff & Phelps's claim.
Duff & Phelps's claim arose from litigation services provided to
defend Greenpoint and others against an arbitration commenced by
Erick Hallick. In objecting to Duff & Phelps's claim, the Committee
contended that the scheduled claim amount reflected services that
Duff & Phelps performed on behalf of other arbitration respondents,
not just Greenpoint. Duff & Phelps, the Committee argued, had no
right under nonbankruptcy law to charge Greenpoint for work done on
behalf of others, so the claim must be disallowed to that extent.
In opposing the Committee's fees for contesting Duff & Phelps's
claim, the debtors argue that the Committee should have known that
its objection was baseless. According to the debtors, the objection
was not reasonably likely to benefit the estate because
Greenpoint's obligation to Duff & Phelps was based on an engagement
letter that made payment Greenpoint's sole responsibility and the
Committee's position that Greenpoint was not liable for fees
benefitting other respondents was unsupported.
The Court overrules this objection. The Court finds that the
Committee's pursuit of the claim objection was reasonable. The
Court points out that if discovery had revealed a basis for
inferring that Duff & Phelps had a contractual relationship with
other respondents, the Committee might have succeeded in reducing
Duff & Phelps's half-million-dollar claim by showing that it was
based in part on services for which non-debtors were responsible.
A full-text copy of the Decision and Order dated Oct. 27, 2022, is
available at https://tinyurl.com/2ym4y6wj from Leagle.com.
About Greenpoint Tactical Income Fund
Madison, Wisc.-based Greenpoint Tactical Income Fund, LLC is a
private investment fund. Its wholly owned subsidiary, GP Rare
Earth Trading Account LLC, is the entity that holds the gems and
minerals.
Greenpoint and GP Rare Earth sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. E.D. Wis. Lead Case No. 19-29613) on
Oct. 4, 2019. Judge G. Michael Halfenger oversees the cases.
At the time of the filing, Greenpoint estimated assets of $100
million to $500 million and liabilities of $10 million to $50
million. GP Rare Earth estimated assets of $100 million to $500
million and liabilities of $10 million to $50 million.
Steinhilber Swanson, LLP and CliftonLarsonAllen, LLP serve as the
Debtors' bankruptcy counsel and accountant, respectively. The
Debtors tapped Iavarone Law Firm PC, Landsman Law Firm LLC, Husch
Blackwell LLP, California Appellate Law Group LLP, Braganca Law
LLC, Kopecky Schumacher Rosenburg LLC as special counsels, and NAV
Consulting, Inc. as fund administrator.
On Dec. 5, 2019, the U.S. Trustee for Region 11 appointed an
official committee of equity security holders in the Debtors'
Chapter 11 cases. Freeborn & Peters, LLP and Phoenix Management
Services, LLC serve as the equity committee's legal counsel and
financial advisor, respectively.
GUARACHI WINE: Sale of Assets to Titan Wine for $430K Approved
--------------------------------------------------------------
Judge Victoria S. Kufmann of the U.S. Bankruptcy Court for the
Central District of California, San Fernando Valley Division,
authorized Guarachi Wine Partners Inc. to sell remaining wine
inventory and remaining wine brands and related intellectual
property to Titan Wine & Spirits, LLC, for $430,080.
The Debtor is authorized to consummate the sale of the Assets to
Titan in accordance with the Sale Order.
The Sale is free and clear of all Encumbrances, with any and all
such Encumbrances, including the lien of City National Bank, N.A.,
to attach to proceeds of the sale.
As the authorized representative of the Debtor's estate, Sherwood
Partners, Inc. is authorized and directed to execute a bill of sale
in favor of Titan for the Assets.
Titan will pay the Purchase Price into the Debtor's DIP bank
account.
The CNB Stipulation is not approved at this time. The Debtor will
file a revised CNB Stipulation with the Court and provide creditors
with notice that they have seven days to file an opposition to the
revised CNB Stipulation. If no opposition is timely filed to the
revised CNB
Stipulation, the Debtor is authorized to file a proposed order with
the Court for approval of the revised CNB Stipulation along with a
declaration stating that no timely opposition was filed to the
revised CNB Stipulation. If a timely objection is filed to the
revised CNB Stipulation, the Debtor will set the matter for a
noticed hearing.
Notwithstanding Bankruptcy Rule 6004(h) or any other Local
Bankruptcy Rule or otherwise, the Sale Order will not be stayed for
14-days after its entry, but will be effective and enforceable
immediately upon entry pursuant to Bankruptcy Rule 6004(h) so the
Debtor is authorized to consummate its sale of the Assets to Titan
immediately.
A hearing on the Motion was held on Oct. 13, 2022, at 2:00 p.m.
About Guarachi Wine Partners
Guarachi Wine Partners Inc. is a wine wholesaler based in
California. It was founded by Alex Guarachi, the sole shareholder,
and has been in business since 1985. Guarachi Wine Partners sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
C.D. Calif. Case No. 22-10545) on May 4, 2022. In the petition
signed by Alejandro Guarachi, president and chief executive
officer, the Debtor disclosed up to $10 million in both assets and
liabilities.
Judge Victoria S. Kaufman oversees the case.
Ron Bender, Esq., at Levene, Neale, Bender, Yoo and Golubchick,
LLP
is the Debtor's counsel.
HASTINGS AND HOLLOWELL: Auction of $2.65M Property Set for Dec. 7-8
-------------------------------------------------------------------
Judge David M. Warren of the U.S. Bankruptcy Court for the Eastern
District of North Carolina authorized Hastings and Hollowell,
Inc.'s sale of property consisting of approximately 10 acres with
an attached commercial building located at 102 Caratoke Highway, in
Moyock, North Carolina, and 4732 Battlefield Boulevard, in
Chesapeake, Virginia, to Neovision, LLC, for $2.65 million, subject
to overbid.
The Bidding Procedures are approved, and the Property will be
conveyed free and clear of the following claims, liens and
encumbrances:
A. Any and all post-petition liens and/or security interests
in favor of OldDominion Tobacco Co., Inc. or Southern Bank and
Trust Co.
B. Any and all real property taxes due and owing to any City,
County or municipal corporation.
C. Any and all remaining interests, liens, encumbrances,
rights and claims asserted against the Property, which relate to or
arise as a result of a sale of the Property, or which may be
asserted against the buyer of the Property, whether fixed and
liquidated or contingent and unliquidated, that have or may be
asserted against the Property, by the North Carolina Department of
Revenue and the Internal Revenue Service.
The liens against the Property will be transferred to and
automatically attach to the proceeds of sale.
The Property will be sold in an "as is" condition, and no
warranties will be made as to the condition, use or fitness of the
Property for a particular purpose. The purchaser of the Property
will bear all costs associated with the transfer of the Property,
including registration fees, local transfer fees and taxes, and
North Carolina sales taxes, as applicable.
The Debtor is authorized to designate a Qualified Bid as a Stalking
Horse Bid, and approving payment of a break-up fee to Stalking
Horse Bidder in the amount of 1.5% of the initial Stalking Horse
Bid to be paid to Stalking Horse Bidder from the sales proceeds at
closing, in the event Stalking Horse Bidder is not the Successful
Bidder.
The overbid procedures at the auction in the event of a Stalking
Horse Bidder, whereby competing bids must exceed the Stalking Horse
Bid by not less than 3% of the proposed Stalking Horse Bid, are
approved.
The period within which bidders will be able to submit Qualified
Bids will commence the date of this Order, and expire 2:00 p.m.
(EST) Dec. 6, 2022.
The proposed qualifications for a Qualified Bidder to conduct an
on-line auction in accordance with the Bidding Procedures are
approved.
If more than one Qualified Bidder submits a qualifying bid, the
Property will be auctioned in accordance with the Bidding
Procedures, commencing at 10:00 a.m. (EST) Dec. 7, 2022, and
concluding at 2:00 p.m. (EST) Dec. 8, 2022.
A final hearing to approve the sale to the Successful Bidder will
be held at 10:00 a.m. (EST) on Dec. 20, 2022.
About Hastings and Hollowell
Hastings and Hollowell, Inc. is a Moyock, North Carolina-based
single asset real estate corporation engaged in the business of
leasing its real property.
Hastings and Hollowell filed a Chapter 11 petition (Bankr. E.D.
N.C. Case No. 21-00806) on April 8, 2021. At the time of the
filing, the Debtor had between $1 million and $10 million in both
assets and liabilities. Judge David M. Warren presides over the
case. The Law Offices of Oliver & PLLC, led by Clayton W. Cheek,
Esq., and Tadlock & Associates, Inc. serve as the Debtor's legal
counsel and accountant, respectively.
HEALTHIER CHOICES: Posts $2.1 Million Loss From Operations in Q3
----------------------------------------------------------------
Healthier Choices Management Corp. reported loss from operations of
$2.12 million on $5.77 million of net total sales for the three
months ended Sept. 30, 2022, compared to a loss from operations of
$1.05 million on $3.27 million of net total sales for the three
months ended Sept. 30, 2021.
For the nine months ended Sept. 30, 2022, the Company reported a
loss from operations of $4.84 million on $16.96 million of net
total sales compared to a loss from operations of $2.27 million on
$10.12 million of net total sales for the nine months ended Sept.
30, 2021.
As of Sept. 30, 2022, the Company had $45.47 million in total
assets, $8.13 million in total liabilities, and $37.33 million in
total stockholders' equity.
Jeffrey Holman, chief executive officer of HCMC, said, "We had our
second consecutive record-breaking quarter and are once again
extremely pleased with our sales and margin performance for the
business. Given a very challenging economic environment coupled
with the impact hurricane Ian had on our operations, this is a
testament to our team's ability to continue delivering results."
Mr. Holman concluded, "We continue investing strategically in our
natural foods grocery business, as evidenced by our latest
acquisition of Green's Natural Foods which was completed this
month. We remain disciplined in our cost management, and our team
has stayed focused on achieving profitability for the business. We
believe we are well positioned for the future to enhance
shareholder value."
A full-text copy of the press release is available for free at:
https://www.sec.gov/Archives/edgar/data/844856/000084485622000043/ex99_1.htm
About Healthier Choices
Headquartered in Hollywood, Florida, Healthier Choices Management
Corp. -- http://www.healthiercmc.com-- is a holding company
focused on providing consumers with healthier daily choices with
respect to nutrition and other lifestyle alternatives.
Healthier Choices reported a net loss of $4.04 million for the year
ended Dec. 31, 2021, a net loss of $3.72 million for the year ended
Dec. 31, 2020, a net loss of $2.80 million for the year ended Dec.
31, 2019, and a net loss of $13.16 million for the year ended Dec.
31, 2018. As of June 30, 2022, the Company had $33.83 million in
total assets, $7.26 million in total liabilities, and $26.57
million in total stockholders' equity.
HERTZ GLOBAL: Ex-CEO Wants Judge to Slam Brakes on Clawback Suit
----------------------------------------------------------------
Former Hertz CEO Mark Frissora has asked a New Jersey federal judge
to rule in his favor in the car rental company's "vengeful" lawsuit
demanding he return millions of dollars in bonuses over his alleged
role in an accounting scandal, while Hertz fired back, saying that
Frissora's arguments are no better than his previous arguments
which the Court already rejected.
In 2014, Hertz, with the advice of its outside auditors, determined
that a restatement of Hertz's financials from fiscal years 2011,
2012, and 2013 was necessary. The restatement, and the accounting
errors identified therein, led to federal and state government
investigations, a securities class action lawsuit against Hertz,
and other incidental costs.
In THE HERTZ CORPORATION, et al., Plaintiffs, v. MARK P. FRISSORA,
et al., Defendants, Civil Action No. 2:19-cv-08927 (D.N.J.),
originally filed March 25, 2019, alleges that the gross negligence
and misconduct of Hertz's senior executive officers, including
defendants Frissora (formerly Chief Executive Officer) and
Zimmerman (formerly Vice President, Secretary and General Counsel),
contributed to the need for the restatement. Defendants' alleged
misconduct and their involvement in and knowledge of alleged
accounting improprieties and irregularities form the basis of
Plaintiffs' claims, which are alleged as three breach of contract
theories. On May 12, 2020, Plaintiffs filed the Second Amended
Complaint, restating their claims for (i) breach of the 2010 and
2014 clawback policies (Counts I and II); (ii) breach of the
standards of business conduct (Count III); and (iii) breach of the
separation agreements' representations (Count IV).
On June 3, 2021, District Judge Esther Salas entered a ruling
denying the motions of Mark P. Frissora and John J. Zimmerman to
dismiss the Second Amended Complaint.
The parties on Oct. 26, 2022, filed documents in connection with
Frissora's motion for summary judgment.
Frissora asserts that Hertz' clawback claims fails, and that the
Standards are too vague to be enforced as contracts.
"In a futile attempt to avoid summary judgment on its claims,
Hertz's opposition persists with theories that are foreclosed by
the law of the case, misrepresents Judge Salas' prior rulings,
complains aimlessly about Frissora's expert reports, and deflects
attention away from the dispositive plain language of the documents
that underlie its claims. None of these sideshows succeed, and
nothing can mask that summary judgment in Frissora's favor is
warranted," Frissora said in court filings.
"Hertz is bound by its theory that the Clawback Policies as
enforced against Frissora are standalone contracts, and this theory
fails as a matter of law. Hertz offers no evidence in support of
its clawback damages, although it now concedes that at least $10
million it was seeking prior to summary judgment was fabricated.
Hertz has come forward with no evidence that the generic Standards
are sufficiently definite and binding to constitute enforceable
contracts. And Hertz is not entitled to the "extraordinary remedy"
of rescission, no matter how hard it now tries to recast that
claim. Frissora's summary judgment motion should be granted in its
entirety."
Hertz says in court filings that Frissora's latest dismissal
efforts are nothing more than a repackaged version of his previous
motions to dismiss.
"When it comes to citing any facts gleaned from discovery that
could possibly support his arguments, Frissora has nothing to
proffer. Instead, he presents "alternative facts," suggesting that
he did a wonderful job as CEO, and thus, the Compensation
Committees surely must have had a vendetta and were out to get him.
However, there's no evidence to support any such accusation,"
Hertz said in court filings.
"Unfortunately, substantial legal fees have been incurred by Hertz
in attempting to enforce its clawback rights and receive
compensation for the harm caused by Frissora's gross negligence,
while Frissora -- who has been advanced his legal fees by Hertz and
then by Hertz's insurers – has incurred no legal fees whatsoever,
only to find out when all (very expensive) discovery is completed
that his position concerning clawback is no less meritless than his
earlier ones that were already rejected in his earlier dispositive
motions. So, Frissora resorts to a true act of desperation: he
claims Hertz has abandoned what he implicitly concedes is a winning
argument. Even more startling, he does not even mention the
Court's allowance of the Incorporation Point," Hertz added.
"The factual record demonstrates that Frissora himself
unequivocally considered himself to be bound by the Clawback
Policies and the Standards. His arguments are no better than his
previous arguments which the Court already rejected. Worse still,
as a result of his Consent Judgment, he has conceded that he is no
position at all to try to deny liability."
About Hertz Corp.
Hertz Corp. and its subsidiaries -- http://www.hertz.com/--
operate a worldwide vehicle rental business under the Hertz,
Dollar, and Thrifty brands, with car rental locations in North
America, Europe, Latin America, Africa, Asia, Australia, the
Caribbean, the Middle East, and New Zealand. They also operate a
vehicle leasing and fleet management solutions business.
On May 22, 2020, The Hertz Corporation and certain of its U.S. and
Canadian subsidiaries and affiliates filed voluntary petitions for
reorganization under Chapter 11 in the U.S. Bankruptcy Court for
the District of Delaware (Bankr. D. Del. Case No. 20-11218).
Judge Mary F. Walrath oversees the cases.
The Debtors have tapped White & Case LLP as their bankruptcy
counsel, Richards, Layton & Finger, P.A., as local counsel, Moelis
& Co. as investment banker, and FTI Consulting as financial
advisor. The Debtors also retained the services of Boston
Consulting Group to assist the Debtors in the development of their
business plan. Prime Clerk LLC is the claims agent.
The U.S. Trustee for Regions 3 and 9 appointed a Committee to
represent unsecured creditors in Debtors' Chapter 11 cases. The
Committee has tapped Kramer Levin Naftalis & Frankel LLP as its
bankruptcy counsel, Benesch Friedlander Coplan & Aronoff LLP as
Delaware counsel, UBS Securities LLC as investment banker, and
Berkeley Research Group, LLC, as financial advisor. Ernst & Young
LLP provides audit and tax services to the Committee.
* * *
Hertz Global and its subsidiaries emerged from Chapter 11
bankruptcy at the end of June 2021. Hertz won approval of a Plan
of Reorganization that unimpaired all classes of creditors (who are
legally deemed to have accepted it) and was approved by more than
97% of voting shareholders. The Plan provided for the existing
shareholders to receive more than $1 billion of value.
Recovery by shareholders of close to $8 a share was made possible
after a fierce competition among bidders for control in the
company. Initial offers from potential bidders for Hertz in its
bankruptcy offered nothing for equity. Hertz in May 2021 selected
investment firms Knighthead Capital Management LLC and Certares
Management LLC, joined by other investors including Apollo Global
Management Inc. and a group of existing shareholders, as the
winning bidders for control of the bankrupt company. A rival group
that included Centerbridge Partners LP, Warburg Pincus LLC and
Dundon Capital Partners LLC was outbid at auction.
Hertz's Plan eliminated over $5 billion of debt, including all of
Hertz Europe's corporate debt, and will provide more than $2.2
billion of global liquidity to the reorganized Company. Hertz also
emerged with (i) a new $2.8 billion exit credit facility consisting
of at least $1.3 billion of term loans and a revolving loan
facility, and (ii) an $7 billion of asset-backed vehicle financing
facility, each on favorable terms.
HOME DEALS OF MAINE: $235K Sale of Buxton Asset to Raychards OK'd
-----------------------------------------------------------------
Judge Peter G. Cary of the U.S. Bankruptcy Court for the District
of Maine approved Home Deals of Maine, LLC's sale of the real
property located at 8 Church Hill Road, in Buxton, County of York,
Maine, described in a deed recorded in York County Registry of
Deeds Book 17456, Page 756, to Torry and Marc Raychard for
$235,000.
The Sale is free and clear of all liens, claims, encumbrances, and
other interests.
A copy of the settlement statement for the sale will be provided to
U.S. Bank through its counsel for review a minimum of two business
days prior to the closing date.
After payment of ordinary and customary closing expenses and costs
of Seller as shown on the settlement statement, the remaining
proceeds of the sale will be held in escrow pending further Order
of the Court.
To the extent that any party has a validly perfected lien in the
property that is to be sold, such liens will attach to the
remaining proceeds.
Within 14 days after closing of the sale, the Debtor will provide
the United States Trustee and Subchapter V Trustee with a copy of
the settlement statement for the sale.
Entry of the Order is not intended to be determinative with regard
to the potential claim of Kenobi, LLC, against the Debtor, or the
nature of said potential claim. Kenobi's right to press the nature
of its potential claim in this matter is reserved.
About Home Deals of Maine
Home Deals of Maine, LLC owns 14 rental properties in Maine, with
a total current value of $2.7 million. The company is based in
Waterville, Maine.
Home Deals of Maine filed a petition for Chapter 11 protection
(Bankr. D. Maine Case No. 21-10267) on Oct. 6, 2021, listing
$3,147,975 in assets and $1,650,258 in liabilities. Jo A.
Roderick, sole member, signed the petition.
Judge Peter G. Cary oversees the case.
The Debtor tapped James F. Molleur, Esq., at Molleur Law Office as
bankruptcy counsel, and Thomas Cox, Esq., a practicing attorney in
Portland, Maine, as special counsel.
HOME DEALS: Seeks to Hire Full Disclosure as Forensic Accountant
----------------------------------------------------------------
Home Deals of Maine, LLC seeks approval from the U.S. Bankruptcy
Court for the District of Maine to employ Full Disclosure, LLC as
its forensic accountant.
The forensic accountant will represent the Debtor in any
litigation, potential claims or adversary proceedings associated
with an Aug. 31, 2018 mortgage loan made by Finance of America
Commercial, LLC.
The Debtor will compensate the firm at its hourly rate of $300.
Jay Patterson, CFE, a member of Full Disclosure, disclosed in a
court filing that the firm is a "disinterested person" as that term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Jay Patterson, CFE
Full Disclosure, LLC
646 Quapaw Ave.
Hot Springs, AR 71901
About Home Deals of Maine
Home Deals of Maine, LLC owns 14 rental properties in Maine, with a
total current value of $2.7 million. The company is based in
Waterville, Maine.
Home Deals of Maine filed a petition for Chapter 11 protection
(Bankr. D. Me. Case No. 21-10267) on Oct. 6, 2021, listing
$3,147,975 in assets and $1,650,258 in liabilities. Jo A. Roderick,
sole member, signed the petition.
Judge Peter G. Cary oversees the case.
The Debtor tapped James F. Molleur, Esq., at Molleur Law Office as
bankruptcy counsel; Thomas Cox, Esq., a practicing attorney in
Portland, Maine, as special counsel; and Full Disclosure, LLC as
forensic accountant.
HORNBLOWER SUB LLC: Bank Debt Trades at 31% Discount
----------------------------------------------------
Participations in a syndicated loan under which Hornblower Sub LLC
is a borrower were trading in the secondary market around 69
cents-on-the-dollar during the week ended Fri., October 28, 2022,
according to Bloomberg's Evaluated Pricing service data.
The USD349 million facility is a PIK term loan. The loan is
scheduled to mature in April 2025. As of October 28, 2022, the
amount was fully drawn and outstanding.
Hornblower Sub, LLC is a charter yacht and public dining cruise
operator.
HOUSTON AMERICAN: Three Proposals Passed at Annual Meeting
----------------------------------------------------------
Houston American Energy Corp. held its Annual Meeting of
shareholders on Oct. 25, 2022, at which the shareholders:
(1) elected R. Keith Grimes as Class A director to serve until
the 2025 Annual Meetings of Stockholders and until his successor
has been duly elected and qualified, or until such director's
earlier resignation, removal or death;
(2) did not approve an amendment of the Company's certificate of
incorporation to increase the authorized shares of common stock;
(3) ratified the appointment of Marcum LLP as the Company's
independent registered public accounting firm for fiscal 2022; and
(4) approved, on an advisory basis, the compensation of the named
executive officers as disclosed in the Company's Proxy Statement.
About Houston American Energy
Based in Houston, Texas, Houston American Energy Corp. is an
independent oil and gas company focused on the development,
exploration, exploitation, acquisition, and production of natural
gas and crude oil properties. The Company's principal properties,
and operations are in the U.S. Permian Basin. Additionally, it has
properties in the U.S. Gulf Coast region, particularly Texas and
Louisiana, and in the South American country of Colombia.
Houston American reported a net loss of $1.02 million for the year
ended Dec. 31, 2021, a net loss of $4.04 million for the year
ended Dec. 31, 2020, and a net loss of $2.51 million for the year
ended Dec. 31, 2019. As of June 30, 2022, the Company had $10.63
million in total assets, $369,461 in total liabilities, and $10.26
million in total shareholders' equity.
INSTANT BRANDS: Bank Debt Trades at 33% Discount
------------------------------------------------
Participations in a syndicated loan under which Instant Brands
Holdings Inc is a borrower were trading in the secondary market
around 67 cents-on-the-dollar during the week ended Fri., October
28, 2022, according to Bloomberg's Evaluated Pricing service data.
The USD450 million facility is a term loan. The loan is scheduled
to mature in April 2028. As of October 28, 2022, USD407.9 million
of the amount was drawn and outstanding.
Instant Brands Holdings Inc. designs, manufactures and markets
kitchen products.
IVANTI SOFTWARE: Bank Debt Trades at 34.5% Discount
---------------------------------------------------
Participations in a syndicated loan under which Ivanti Software Inc
is a borrower were trading in the secondary market around 65.5
cents-on-the-dollar during the week ended Fri., October 28, 2022,
according to Bloomberg's Evaluated Pricing service data.
The USD545 million facility is a term loan. The loan is scheduled
to mature in December 2028. As of October 28, 2022, the amount was
fully drawn and outstanding.
Ivanti is an IT software company headquartered in South Jordan,
Utah, United States. It produces software for IT Security, IT
Service Management, IT Asset Management, Unified Endpoint
Management, Identity Management and Supply Chain Management.
JO-ANN STORES: $225M Bank Debt Trades at 36% Discount
-----------------------------------------------------
Participations in a syndicated loan under which Jo-Ann Stores LLC
is a borrower were trading in the secondary market around 64
cents-on-the-dollar during the week ended Fri., October 28, 2022,
according to Bloomberg's Evaluated Pricing service data.
The USD225 million facility is a term loan. The loan is scheduled
to mature in May 2024. As of October 28, 2022, the amount was
fully drawn and outstanding.
Jo-Ann Stores, LLC., more commonly known as Jo-Ann, is an American
specialty retailer of crafts and fabrics based in Hudson, Ohio. It
operates the retail chains JOANN Fabrics and Crafts and Jo-Ann Etc.
JO-ANN STORES: $675M Bank Debt Trades at 32% Discount
-----------------------------------------------------
Participations in a syndicated loan under which Jo-Ann Stores LLC
is a borrower were trading in the secondary market around 67.75
cents-on-the-dollar during the week ended Fri., October 28, 2022,
according to Bloomberg's Evaluated Pricing service data.
The USD675 million facility is a term loan. The loan is scheduled
to mature in June 2028. As of October 28, 2022, USD668.25 million
of the amount was drawn and outstanding.
Jo-Ann Stores, LLC., more commonly known as Jo-Ann, is an American
specialty retailer of crafts and fabrics based in Hudson, Ohio. It
operates the retail chains JOANN Fabrics and Crafts and Jo-Ann
Etc.
JOURNEY PERSONAL: Bank Debt Trades at 35.8% Discount
----------------------------------------------------
Participations in a syndicated loan under which Journey Personal
Care Corp is a borrower were trading in the secondary market around
64.1875 cents-on-the-dollar during the week ended Fri., October 28,
2022, according to Bloomberg's Evaluated Pricing service data.
The USD650 million facility is a term loan. The loan is scheduled
to mature in March 2028. As of October 28, 2022, the amount was
fully drawn and outstanding.
Journey Personal Care Corp. is a manufacturer and distributor of
personal care products.
KNIGHT HEALTH: Bank Debt Trades at 31% Discount
-----------------------------------------------
Participations in a syndicated loan under which Knight Health
Holdings LLC is a borrower were trading in the secondary market
around 69 cents-on-the-dollar during the week ended Fri., October
28, 2022, according to Bloomberg's Evaluated Pricing service data.
The USD450 million facility is a term loan. The loan is scheduled
to mature in December 2028. As of October 28, 2022, the amount
was fully drawn and outstanding.
Knight Health Holdings LLC owns or operates skilled nursing
facilities in 5 states: Florida, Kentucky, Nevada, North Carolina,
and California.
LECLAIRRYAN PLLC: Ch. 7 Trustee Turns to Malpractice Claims Deal
----------------------------------------------------------------
Counsel for LeClairRyan's Chapter 7 trustee told a Virginia
bankruptcy judge Thursday, Oct. 27, 2022, that the trustee is
turning to focus on dealing with the claims against the defunct law
firm, including malpractice suits seeking more than $626 million in
damages.
Lynn L. Tavenner is the Chapter 7 trustee of the bankruptcy estate
of LeClairRyan PLLC.
On Oct. 27, 2022, the Honorable Kevin R. Huennekens held a hearing
on, among other things, Ms. Tavenner's motion to establish
procedures for the interim distribution to Chapter 11
administrative creditors of the Debtor.
Administrative Expenses
Ms. Tavenner said in court filings that as of September 29, 2022,
the amount of Estate funds in the Trustee's possession was as
follows: $858,631 (Signature Bank- Regular), $15,990,995.52
(Signature Bank – Money Market), $65,715.09 (Operating Account
– HSBC), $954,692.37 (commonly referred to as CAPE account), and
$299,775.36 (Virginia IOLTA).
The Trustee has and continues to review the claims filed in the
Case for amounts due and owing as of the Petition Date, which
currently total more than $670,000,000.
The Trustee anticipates that additional time will be required to
fully administer the Debtor’s Estate but maintains, based on
facts and circumstances known to the Trustee, that payment of
Allowed Chapter 11 Administrative Expenses will neither impede her
ability to properly administer this Estate to conclusion nor
negatively impact the payment of expenses related to that
administration.
As such, the Trustee seeks to establish procedures whereby the
Trustee may make an interim distribution to any Person claiming an
administrative expense under Sec. 503(a) of the Bankruptcy Code
which administrative expense was (a) incurred on or after Sept. 3,
2019 and before Oct. 4, 2019 and (b) has been allowed by final
order of the Bankruptcy Court.
About LeClairRyan PLLC
Founded in 1988, LeClairRyan PLLC is a national law firm with 385
attorneys, including 160 shareholders, at its peak. The firm
represented thousands of clients, including individuals and local,
regional, and global businesses.
Following massive defections by its attorneys LeClairRyan, members
of the firm in July 2019 voted to effect a wind-down of the
Debtor's operations.
LeClairRyan PLLC sought Chapter 11 protection (Bankr. E.D. Va. Case
No. 19-bk-34574) on Sept. 3, 2019, to effect the wind-down of its
affairs.
In its Chapter 11 petition, the firm listed a range of 200-999
creditors owed between $10 million and $50 million. The firm claims
assets of $10 million to $50 million.
The Hon. Kevin R Huennekens is the case judge.
Richmond attorneys Tyler Brown and Jason Harbour of Hunton Andrews
Kurth represented LeClairRyan in the case. Protiviti was the
Debtor's financial adviser for the liquidation.
The bankruptcy case was converted to a Chapter 7 liquidation on
Oct. 24, 20219. Lynn L. Tavenner was named a Chapter 7 trustee, and
then Benjamin C. Ackerly, a successor trustee.
The Chapter 7 trustee Ackerly's counsel:
Tyler P. Brown
Hunton Andrews Kurth LLP
Tel: 804-788-8200
E-mail: tpbrown@huntonak.com
LOVING KINDNESS: Seeks to Hire Thompson Law Group as Counsel
------------------------------------------------------------
Loving Kindness Healthcare Systems, LLC seeks approval from the
U.S. Bankruptcy Court for the Western District of Pennsylvania to
employ Thompson Law Group, PC as its legal counsel.
The firm will render these services:
(a) advise the Debtor regarding its powers and duties;
(b) take all necessary action to protect and preserve the
Debtor's estate;
(c) prepare legal papers;
(d) perform any and all other legal services for the Debtor in
connection with its Chapter 11 case; and
(e) perform such legal services as the Debtor may request with
respect to any matter appropriate in assisting the Debtor's effort
to reorganize.
The hourly rates of the firm's counsel and staff are as follows:
Attorneys $350
Paralegals $90
In addition, the firm will seek reimbursement for expenses
incurred.
Prior to the petition date, Thompson Law Group received a retainer
of $10,000 from the Debtor.
Brian Thompson, Esq., an attorney at Thompson Law Group, disclosed
in a court filing that the firm is a "disinterested person" as that
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Brian C. Thompson, Esq.
Thompson Law Group, PC
125 Warrendale Bayne Road, Suite 200
Warrendale, PA 15086
Telephone: (724) 799-8404
Facsimile: (724) 799-8409
Email: bthompson@thompsonattorney.com
About Loving Kindness Healthcare Systems
Loving Kindness Healthcare Systems, LLC, a home health care service
in Pittsburgh, Pa., filed a voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. W.D. Pa. Case No.
22-22092) on Oct. 22, 2022. In the petition signed by Scott Taylor,
director, the Debtor disclosed up to $50,000 in assets and up to
$10 million in liabilities.
Judge Jeffery A. Deller oversees the case.
Brian C. Thompson, Esq., at Thompson Law Group serves as the
Debtor's counsel.
LUCKY BUCKS: Bank Debt Trades at 34% Discount
---------------------------------------------
Participations in a syndicated loan under which Lucky Bucks LLC is
a borrower were trading in the secondary market around 66
cents-on-the-dollar during the week ended Fri., October 28, 2022,
according to Bloomberg's Evaluated Pricing service data.
The USD555 million facility is a term loan. The loan is scheduled
to mature in July 2027. As of October 28, 2022, USD527.25 million
of the amount was drawn and outstanding.
Lucky Bucks, LLC provides coin-operated amusement machines.
M&M CREATIVE LAMINANTS: Files Bare-Bones Chapter 11 Petition
------------------------------------------------------------
M&M Creative Laminants Inc. filed for chapter 11 protection in the
Western District of Pennsylvania without stating the reason.
The Debtor disclosed $187,294 in assets against $1,411,673 in
liabilities as of the bankruptcy filing.
M&M Creative Laminants said it had 1 to 49 creditors, and that
funds will be available to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
Nov. 29, 2022, at 2:00 p.m. Ch 11 341 telephonic hearing. Proofs
of claim are due Dec. 30, 2022.
About M&M Creative Laminants
M&M Creative Laminants Inc. -- https://www.mmlaminates.com -- is a
full service countertop and cabinet fabricating facility.
M&M Creative Laminants filed a petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. W.D. Pa. Case No. 22-22116) October
26, 2022. In the petition filed by Derek E. Morrow Sr., as
presidentr, the Debtor reported assets between $100.000 and
$500,000 and liabilities between $1 million and $10 million.
The Debtor is represented by John Patrick Lacher of The Lynch Law
Group LLCC.
MCDERMOTT TECHNOLOGY: $2.2B Bank Debt Trades at 46% Discount
------------------------------------------------------------
Participations in a syndicated loan under which McDermott
Technology Americas Inc is a borrower were trading in the secondary
market around 54 cents-on-the-dollar during the week ended Fri.,
October 28, 2022, according to Bloomberg's Evaluated Pricing
service data.
The US$2.26 million facility is a term loan. The loan is scheduled
to mature in May 2025. As of October 28, 2022, US$2.22 million of
the amount was drawn and outstanding.
McDermott is a premier, fully-integrated provider of engineering
and construction solutions to the energy industry.
MCDERMOTT TECHNOLOGY: $310M Bank Debt Trades at 46% Discount
------------------------------------------------------------
Participations in a syndicated loan under which McDermott
Technology Americas Inc is a borrower were trading in the secondary
market around 54 cents-on-the-dollar during the week ended Fri.,
October 28, 2022, according to Bloomberg's Evaluated Pricing
service data.
The US$310 million facility is a term loan. The loan is scheduled
to mature in May 2025. As of October 28, 2022, US$305 million of
the amount was drawn and outstanding.
McDermott is a premier, fully-integrated provider of engineering
and construction solutions to the energy industry.
MICROVISION INC: Incurs $12.9 Million Net Loss in Third Quarter
---------------------------------------------------------------
MicroVision, Inc. reported a net loss of $12.85 million on zero
revenue for the three months ended Sept. 30, 2022, compared to a
net loss of $9.38 million on $718,000 of total revenue for the
three months ended Sept. 30, 2021.
For the nine months ended Sept. 30, 2022, the Company reported a
net loss of $39.62 million on $664,000 of total revenue compared to
a net loss of $30.57 million on $1.94 million of total revenue for
the nine months ended Sept. 30, 2021.
As of Sept. 30, 2022, the Company had $109.39 million in total
assets, $23.77 million in total liabilities, and $85.62 million in
total shareholders' equity.
"We are very pleased to announce that MicroVision has successfully
delivered on all the objectives set out earlier in this year. The
support of MAVIN on the NVIDIA drive platform provides yet another
validation of our product that we believe will surpass OEM
expectations in new, more complex highway driving scenarios," said
Sumit Sharma, MicroVision's chief executive officer. "Our
pixel-by-pixel approach to Class 1, which we believe is a first in
the industry, coupled with the most compelling hardware design
enables OEMs to explore more placement options along with superior
specs and highway pilot capabilities."
"I am also pleased to report that we have started sample sales to
OEMs and Tier 1s in Q4 2022, as we continue to expand our
engagement with them and demonstrate the capabilities of our
hardware and software solution. We expect our sample sales to
increase into next year and will provide updates in early 2023 on
our drive-by-wire system centered on our lidar hardware and our
high-speed highway pilot ADAS software, and other important
achievements in 2023," continued Sharma.
A full-text copy of the press release is available for free at:
https://www.sec.gov/Archives/edgar/data/65770/000119312522270967/d413352dex991.htm
About MicroVision
Microvision, Inc. -- http://www.microvision.com-- is a pioneering
company in MEMS based laser beam scanning technology that
integrates MEMS, lasers, optics, hardware, algorithms and machine
learning software into its proprietary technology to address
existing and emerging markets. The Company's integrated approach
uses its proprietary technology to provide solutions for automotive
lidar sensors, augmented reality micro-display engines, interactive
display modules and consumer lidar modules.
MicroVision reported a net loss of $43.20 million for the year
ended Dec. 31, 2021, a net loss of $13.63 million for the year
ended Dec. 31, 2020, a net loss of $26.48 million for the year
ended Dec. 31, 2019, and a net loss of $27.25 million for the year
ended Dec. 31, 2018. As of June 30, 2022, the Company had $107.19
million in total assets, $13.09 million in total liabilities, and
$94.10 million in total shareholders' equity.
MLN US HOLDCO: $1.12-Bil. Bank Debt Trades at 37.5% Discount
------------------------------------------------------------
Participations in a syndicated loan under which MLN US Holdco LLC
is a borrower were trading in the secondary market around 62.5
cents-on-the-dollar during the week ended Fri., October 28, 2022,
according to Bloomberg's Evaluated Pricing service data.
The USD1.12 billion facility is a term loan. The loan is scheduled
to mature in November 2025. As of October 28, 2022, USD1.078
billion of the amount was drawn and outstanding.
MLN US Holdco LLC was formed by Searchlight Capital Partners, L.P.
to facilitate its acquisition of Mitel Networks Corporation, which
manufactures communication equipment.
MONITRONICS INTERNATIONAL: Bank Debt Trades at 34% Discount
-----------------------------------------------------------
Participations in a syndicated loan under which Monitronics
International Inc is a borrower were trading in the secondary
market around 66 cents-on-the-dollar during the week ended Fri.,
October 28, 2022, according to Bloomberg's Evaluated Pricing
service data.
The USD822.5 million facility is a term loan. The loan is
scheduled to mature in March 2024. As of October 28, 2022,
USD797.8 million of the amount was drawn and outstanding.
Monitronics International, Inc., is an American company that offers
home security systems.
MOUNTAIN PROVINCE: Reports Q3 2022 Production, Sales Results
------------------------------------------------------------
Mountain Province Diamonds Inc. announced production and sales
results for the third quarter ended Sept. 30, 2022 from the Gahcho
Kue Diamond Mine. All figures are expressed in Canadian dollars
unless otherwise noted.
Q3 Sales Highlights
* Highest Quarterly Revenue in Company History. Total proceeds
of $111M representing the highest quarterly revenue in the
Company's history, and a 9% increase relative to that achieved in
Q2 2022.
* Quarter-on-quarter 37% Increase in Carats Sold. The Company
old 805,227 carats in Q3 2022, a 37% increase relative to Q2 2022.
* Q3 production of 1,451,453 carats, which is 22% better than
Q1, 2022 and 15% better than Q2, 2022.
Mark Wall, the Company's president and chief executive officer,
commented: "After a disappointing production performance in Q1 and
into Q2, an action plan was developed to drive operational and
safety improvements at the mine. The safety performance was
however further impacted by a workplace fatality in early
September. Workplace fatalities have no place in our industry and
ensuring a safe workplace is a primary focus. On production, Q3
was stronger than both Q1 and Q2 and the action plan in place is
incrementally delivering the required improvements. This improving
production performance, coupled with our very strong financial
performance during the quarter places the Company in a strong
position as we enter the final quarter of the year."
"We have also recently announced our refinancing solution with a
net US$190 million in private second lien notes from our existing
bondholders at a coupon of 9%, with further details within the
associated press release. From discussions with several
shareholders there was a concern that there would be a large equity
issue with this refinancing, I am very happy to report that our
three main existing bondholders have presented a refinancing
package that features no equity dilution of existing shareholders,"
Mr. Wall said.
Q3 Production Takeaways
* 816,201 ore tonnes treated, an 2% decrease relative to Q3
2021, and a 9% increase relative to Q2 2022 (Q3 2021: 832,511
tonnes treated; Q2 2022, 749,821 tonnes treated)
* 1,451,455 carats recovered, 7% lower than Q3 2021, and a 15%
increase relative to Q2 2022 (Q3 2021: 1,562,105 carats recovered,
Q2 2022: 1,260,899 carats recovered)
* Average grade of 1.78 carats per tonne, a 5% decrease relative
to Q3 2021, and 6% higher than to Q2 2022 (Q3 2021: 1.88 carats per
tonne, Q2 2022: 1.68 carats per tonne)
Q3 Sales Performance
Though rough diamond market prices have stabilized compared to the
strong gains achieved in H1 2022, the Company's sales continue to
show resiliency. During the quarter 805,227 carats were sold for
total proceeds of C$110.6 million (US$83.3 million), resulting in
an average value of C$137 per carat (US$103 per carat). This Q3/22
sales result represents a 13% increase in revenue relative to
Q2/22, and a 10% reduction on an US$ average value per carat basis.
Adjusting for mix of goods sold, on a like-for-like basis the Q3/22
sales result represented a 2% increase in average value per carat
relative to Q2/22.
A full-text copy of the press release is available for free at:
https://www.sec.gov/Archives/edgar/data/1004530/000127956922001754/ex991.htm
About Mountain Province
Mountain Province Diamonds Inc. is a Canadian-based resource
company listed on the Toronto Stock Exchange under the symbol
'MPVD'. The Company's registered office and its principal place of
business is 161 Bay Street, Suite 1410, P.O. Box 216, Toronto, ON,
Canada, M5J 2S1. The Company, through its wholly owned
subsidiaries 2435572 Ontario Inc. and 2435386 Ontario Inc., holds a
49% interest in the Gahcho Kue diamond mine, located in the
Northwest Territories of Canada. De Beers Canada Inc. holds the
remaining 51% interest. The Joint Arrangement between the Company
and De Beers is governed by the 2009 amended and restated Joint
Venture Agreement.
Toronto, Canada-based KPMG LLP, the Company's auditor since 1999,
issued a "going concern" qualification in its report dated March
28, 2022, citing that the Company faces liquidity challenges as a
result of liabilities with maturity dates through December 2022 and
short-term financial liquidity needs that raises substantial doubt
about its ability to continue as a going concern.
MOUNTAIN PROVINCE: Signs Term Sheet to Refinance Existing Notes
---------------------------------------------------------------
Mountain Province Diamonds Inc. said it has executed a non-binding
term sheet with certain holders of its 8.000% Senior Secured Second
Lien Notes due 2022, including entities ultimately beneficially
owned by the Company's largest beneficial shareholder, Mr. Dermot
Desmond, for a partial refinancing of the Existing Notes. The term
sheet sets forth the terms of a transaction in which the Exchanging
Holders will exchange Existing Notes for new senior secured second
lien loan notes. While the arrangements are non-binding, Mountain
Province is working with the Exchanging Holders in an effort to
promptly reach binding agreements. The issuance of the New Loan
Notes is subject to, among other things, finalization of the
specific terms thereof, the negotiation and execution of definitive
documentation, and regulatory and disinterested shareholder
approval.
The Proposed Transaction is currently expected to include the
exchange of approximately US$190.0 million aggregate principal
amount of Existing Notes for approximately US$195.9 million
aggregate principal amount of New Loan Notes. Approximately
US$65.3 million of the New Loan Notes will be acquired by entities
ultimately beneficially owned by Mr. Desmond. The New Loan Notes
are expected to be secured by the same assets that secure the
Existing Notes and on a second lien priority basis, bear interest
at a rate of 9.0% per annum and have a three-year term. The
Company expects to retire the remaining balance of the Existing
Notes with cash on hand concurrently with the consummation of the
Proposed Transaction. The Proposed Transaction is not expected to
involve the issuance of new equity.
A special committee of the board of directors of the Company is
providing consideration and oversight of the Proposed Transaction
as well as any other potential alternative transactions intended to
refinance in part the Existing Notes. The Special Committee
consists of independent directors who have no direct or indirect
interest in the Proposed Transaction. Following its review
process, the Special Committee recommended that the Board approve
the execution of the term sheet setting out the terms of the
Proposed Transaction.
Due to the participation of entities ultimately beneficially owned
by Mr. Desmond, the Proposed Transaction is subject to the approval
of the Toronto Stock Exchange and the approval of the Company's
disinterested shareholders in accordance with Multilateral
Instrument 61-101 - Protection of Minority Security Holders in
Special Transactions and the rules of the TSX.
The Proposed Transaction is subject to the execution of definitive
documentation and the approvals described above. The Company gives
no assurance that the Proposed Transaction will be completed on the
terms described herein or at all.
About Mountain Province
Mountain Province Diamonds Inc. is a Canadian-based resource
company listed on the Toronto Stock Exchange under the symbol
'MPVD'. The Company's registered office and its principal place of
business is 161 Bay Street, Suite 1410, P.O. Box 216, Toronto, ON,
Canada, M5J 2S1. The Company, through its wholly owned
subsidiaries 2435572 Ontario Inc. and 2435386 Ontario Inc., holds a
49% interest in the Gahcho Kue diamond mine, located in the
Northwest Territories of Canada. De Beers Canada Inc. holds the
remaining 51% interest. The Joint Arrangement between the Company
and De Beers is governed by the 2009 amended and restated Joint
Venture Agreement.
Toronto, Canada-based KPMG LLP, the Company's auditor since 1999,
issued a "going concern" qualification in its report dated March
28, 2022, citing that the Company faces liquidity challenges as a
result of liabilities with maturity dates through December 2022 and
short-term financial liquidity needs that raises substantial doubt
about its ability to continue as a going concern.
NABORS INDUSTRIES: Posts $13.8 Million Net Loss in Third Quarter
----------------------------------------------------------------
Nabors Industries Ltd. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
attributable to common shareholders of $13.78 million on $698.95
million of total revenues and other income for the three months
ended Sept. 30, 2022, compared to a net loss attributable to common
shareholders of $122.50 million on $524.36 million of total
revenues and other income for the three months ended Sept. 30,
2021.
For the nine months ended Sept. 30, 2022, the Company reported a
net loss attributable to common shareholders of $281.19 million on
$1.90 billion of total revenues and other income compared to a net
loss attributable to common shareholders of $459.25 million on
$1.47 billion of total revenues and other income for the same
period during the prior year.
As of Sept. 30, 2022, the Company had $4.77 billion in total
assets, $3.48 billion in total liabilities, $683 million in
redeemable noncontrolling interest in subsidiary, and $596.16
million in total equity.
The Company's primary sources of liquidity are cash and
investments, availability under its revolving credit facility and
cash generated from operations. As of Sept. 30, 2022, the Company
had cash and short-term investments of $425.1 million and working
capital of $406.7 million. As of Dec. 31, 2021, the Companye had
cash and short-term investments of $991.5 million and working
capital of $1.0 billion. At Sept. 30, 2022, the Company had no
borrowings outstanding under the 2022 Credit Agreement, which has a
total borrowing capacity of $350.0 million.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1163739/000155837022015510/nbr-20220930x10q.htm
About Nabors
Nabors Industries Ltd. (NYSE: NBR) owns and operates land-based
drilling rig fleets and provides offshore platform rigs in the
United States and several international markets. Nabors also
provides directional drilling services, tubular services,
performance software, and innovative technologies for its own rig
fleet and those of third parties.
Nabors reported a net loss of $543.69 million for the year ended
Dec. 31, 2021, a net loss of $762.85 million for the year ended
Dec. 31, 2020, a net loss of $680.51 million for the year ended
Dec. 31, 2019, a net loss of $612.73 million for the year ended
Dec. 31, 2018, and a net loss of $540.63 million for the year ended
Dec. 31, 2017. As of March 31, 2022, the Company had $4.86 billion
in total assets, $3.50 billion in total liabilities, $677.83
million in redeemable noncontrolling interest in subsidiary, and
$680.73 million in total equity.
* * *
In November 2021, Fitch Ratings affirmed Nabors Industries, Ltd.'s
and Nabors Industries, Inc.'s (collectively, Nabors) Issuer Default
Ratings (IDRs) at 'CCC+'.
NATURALSHRIMP INC: Signs Deal to Merge With Yotta Acquisition
-------------------------------------------------------------
NaturalShrimp, Incorporated and Yotta Acquisition Corporation, a
special purpose acquisition company, have signed a definitive
agreement for a proposed merger of the two companies. Under the
Business Combination Agreement, NaturalShrimp will merge with a
wholly owned subsidiary of Yotta. The companies intend for Yotta's
common stock to continue to be listed on the Nasdaq Capital
Market.
Assuming no redemptions by Yotta public stockholders, upon closing,
the combined entity could have access to as much as $105 million in
net cash (after paying transaction expenses) from the Yotta trust
account. Final proceeds will depend upon redemption rates of
current Yotta stockholders at the consummation of the proposed
Transaction.
Gerald Easterling, CEO of NaturalShrimp, said: "This business
combination with Yotta has the potential to significantly
accelerate our efforts for commercialization and the ramp up of
production of our fresh, land-based gourmet-grade shrimp at the
largest indoor farming facilities in the U.S. We also expect that
the merger will provide us with additional capital to advance
facility expansion efforts in strategic markets in the U.S.,
including Florida, Nevada, and the Northeast. Our goal is to
rapidly build market share in the supply-constrained, premium
segment of the market for large shrimp which sell at 20%-30% price
premiums utilizing our propriety, proven and scalable technologies
and production system. Combined with our capital efficient model,
the transaction has the potential to put NaturalShrimp on the fast
track to rollout across the 10 largest population centers in the
U.S."
Hui Chen, CEO of Yotta, added: "We believe NaturalShrimp's patented
technologies, attractive business model and unit economics provides
a premium pricing opportunity for fresh, locally grown product that
is of superior quality and sustainable. We further believe that
NaturalShrimp is well-positioned to become a premier provider of
shrimp in the U.S., and we are pleased that Yotta's stockholders
will have the opportunity to invest and help fill the gap in the
large and growing shrimp market with land-based gourmet-grade
shrimp without the use of antibiotics, probiotics or toxic
chemicals."
The Business Combination Agreement has been approved by the Board
of Directors of each of NaturalShrimp and Yotta.
Certain stockholders of both NaturalShrimp and Yotta have entered
into agreements pursuant to which they have committed to vote their
respective shares in favor of the business combination.
The NaturalShrimp - Yotta Business Combination Agreement
Under the terms of the Business Combination Agreement with Yotta,
Yotta Merger Sub, Inc., a Nevada corporation and wholly owned
subsidiary of Yotta Acquisition Corporation, will merge with and
into the NaturalShrimp, after which the NaturalShrimp will be the
surviving company and a wholly owned subsidiary of Yotta
Acquisition Corp. and Yotta will change its name to NaturalShrimp,
Inc.
Yotta Acquisition Corp. will issue 17.5 million of its common
shares (current valuation of $175.0 million) to the security
holders of NaturalShrimp. In addition, the stockholders of Natural
Shrimp are entitled to receive an additional 5.0 million common
shares (current valuation of $50.0 million) based on achieving
certain revenue targets for 2024 and 5 million common shares
(current valuation of $50 million) based on achieving certain
revenue targets for 2025.
The Business Combination Agreement contains covenants in respect of
non-solicitation of alternative acquisition proposals and a
termination fee payable to Yotta in certain circumstances.
The proposed business combination is expected to close in the first
quarter of 2023, subject to the satisfaction of customary closing
conditions, including the effectiveness of the registration
statement on Form S-4 that Yotta is required to file with the U.S.
Securities and Exchange Commission, required Nasdaq approval, and
the approval of the proposed Transaction and the Business
Combination Agreement by a majority of the stockholders of
NaturalShrimp and a majority of Yotta stockholders voting to
approve thereon. Post-closing, the combined company Board of
Directors will include seven directors designated by
NaturalShrimp.
NaturalShrimp intends to use the proceeds from the proposed
Transaction to accelerate commercialization and production ramp up
of its farm-to-table sushi grade shrimp and fresh seafood.
Advisors
Joseph Gunnar & Co., LLC and Roth Capital Partners, LLC, are
serving as advisors to NaturalShrimp. Lucosky Brookman LLP is
serving as legal counsel to NaturalShrimp.
Chardan is serving as financial advisor to Yotta. Loeb & Loeb LLP
is serving as legal counsel to Yotta.
About NaturalShrimp
NaturalShrimp, Inc. is a publicly traded aqua-tech Company,
headquartered in Dallas, with production facilities located near
San Antonio, Texas. The Company has developed a commercially
viable system for growing shrimp in enclosed, salt-water systems,
using patented technology to produce fresh, never frozen, naturally
grown shrimp, without the use of antibiotics or toxic chemicals.
NaturalShrimp systems can be located anywhere in the world to
produce gourmet-grade Pacific white shrimp.
Naturalshrimp reported a net loss of $86.30 million for the year
ended March 31, 2022, a net loss of $3.59 million for the year
ended March 31, 2021, and a net loss of $4.81 million for the year
ended March 31, 2020. As of June 30, 2022, the Company had $35.45
million in total assets, $24.71 million in total liabilities, $2.02
million in series E redeemable convertible preferred stock, $43.61
million in series F redeemable convertible preferred stock, and a
total stockholders' deficit of $34.89 million.
Dallas, Texas-based Turner, Stone & Company, L.L.P., the Company's
auditor, issued a "going concern" qualification in its report dated
June 29, 2022, citing that the Company has suffered significant
losses from inception and has a significant working capital
deficit. These conditions raise substantial doubt about its
ability to continue as a going concern.
NELSON EDUCATION: $171M Bank Debt Trades at 43% Discount
--------------------------------------------------------
Participations in a syndicated loan under which Nelson Education
Ltd is a borrower were trading in the secondary market around 57
cents-on-the-dollar during the week ended Fri., October 28, 2022,
according to Bloomberg's Evaluated Pricing service data.
The USD171 million facility is a term loan. The loan was scheduled
to mature in 2015. As of October 28, 2022, USD152 million of the
amount was drawn and outstanding.
Nelson Education Ltd. is a Canada-based educational publisher
providing innovative products and solutions for learners of all
ages.
NELSON EDUCATION: $311M Bank Debt Trades at 43% Discount
--------------------------------------------------------
Participations in a syndicated loan under which Nelson Education
Ltd is a borrower were trading in the secondary market around 57
cents-on-the-dollar during the week ended Fri., October 28, 2022,
according to Bloomberg's Evaluated Pricing service data.
The USD311.4 million facility is a term loan. The loan was
scheduled to mature in 2014. As of October 28, 2022, USD279
million of the amount was drawn and outstanding.
Nelson Education Ltd. is a Canada-based educational publisher
providing innovative products and solutions for learners of all
ages.
NOVABAY PHARMACEUTICALS: Registers 35.5M Shares for Possible Resale
-------------------------------------------------------------------
Novabay Pharmaceuticals, Inc. filed a Form S-1 registration
statement with the Securities and Exchange Commission relating to
the resale, from time to time, by certain selling stockholders of
up to 35,510,720 shares of NovaBay common stock, par value $0.01
per share, upon the conversion of shares of the Company's Series B
Non-Voting Convertible Preferred Stock.
The Series B Preferred Stock was originally sold to accredited
investors, including the Selling Stockholders, in a private
placement offering that was consummated on Nov. 2, 2021, pursuant
to a Securities Purchase Agreement, dated Oct. 29, 2021, by and
between the Company and each of the Selling Stockholders. Of the
15,000 shares of Series B Preferred Stock originally issued and
sold in the 2021 Private Placement, 11,260 shares of Series B
Preferred Stock have not been converted and remain outstanding as
of October 25, 2022.
On Sept. 9, 2022, the Company completed warrant reprice
transactions of previously issued Common Stock purchase warrants,
which included Common Stock purchase warrants issued to the Selling
Stockholders in the 2021 Private Placement. The warrant reprice
transactions amended the Common Stock purchase warrants held by
participating warrant holders, which included, (i) among other
modifications, a reduction of the exercise price to $0.18 per share
and (ii) the issuance of new Common Stock purchase warrants that
also have an exercise price of $0.18 per share. As a result of
completing the warrant reprice transactions that repriced certain
of our Common Stock purchase warrants and provided for issuance of
new Common Stock purchase warrants that were at an effective price
per share below the conversion price of the Series B Preferred
Stock, the anti-dilution protections for the Series B Preferred
Stock set forth in the Certificate of Designation of Preferences,
Rights and Limitations of Series B Non-Voting Convertible Preferred
Stock were triggered. These anti-dilution protections resulted in
an automatic downward adjustment of the conversion price of the
Series B Preferred Stock and an additional 35,510,720 shares of
Common Stock that are now issuable upon conversion of the remaining
outstanding Series B Preferred Stock, which are the Shares being
offered by this prospectus.
The Company is registering the resale of the Shares by the Selling
Stockholders pursuant to the terms and conditions of the
Registration Rights Agreement, dated as of Oct. 29, 2021, which the
Company entered into with the Selling Stockholders in connection
with the 2021 Private Placement. After the closing of the 2021
Private Placement, the Company initially registered on a
registration statement on Form S-1 (File No. 333-261443) 37,500,000
shares of Common Stock for resale by the 2021 Investors upon
conversion of the Series B Preferred Stock based on the conversion
price at that time.
The Company's registration of the Shares covered by this prospectus
does not mean that the Selling Stockholders will offer or sell any
of the Shares. The Selling Stockholders may sell all or a portion
of the Additional Shares being offered pursuant to this prospectus
at the prevailing market prices at the time of sale or at
negotiated prices.
A full-text copy of the prospectus is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1389545/000143774922024692/nby20221024_s1.htm
About Novabay
Headquartered in Emeryville, California, NovaBay Pharmaceuticals,
Inc. -- http://www.novabay.com-- is a biopharmaceutical company
focusing on commercializing and developing its non-antibiotic
anti-infective products to address the unmet therapeutic needs of
the global, topical anti-infective market with its two distinct
product categories: the NEUTROX family of products and the
AGANOCIDE compounds. The Neutrox family of products includes
AVENOVA for the eye care market, CELLERX for the aesthetic
dermatology market, and NEUTROPHASE for wound care market.
Novabay reported a net loss and comprehensive loss of $5.82 million
for the year ended Dec. 31, 2021, a net loss and comprehensive loss
of $11.04 million for the year ended Dec. 31, 2020, a net loss and
comprehensive loss of $9.66 million for the year ended Dec. 31,
2019, and a net loss and comprehensive loss of $6.54 million for
the year ended Dec. 31, 2018. As of March 31, 2022, the Company
had $24.79 million in total assets, $7.05 million in total
liabilities, and $17.75 million in total stockholders' equity.
ORBCOMM INC: S&P Placed 'B-' Issuer Credit Rating on Watch Neg.
---------------------------------------------------------------
S&P Global Ratings placed the 'B-' issuer credit rating and all
other ratings on U.S.-based asset tracking and connectivity
provider ORBCOMM Inc. on CreditWatch with negative implications.
The CreditWatch placement indicates the potential for a downgrade,
which could exceed one notch, over the next few weeks if the
company is unable to obtain financing to shore up its liquidity.
Alternatively, S&P could lower the rating by one notch if it views
the capital structure as unsustainable longer-term.
The CreditWatch placement reflects weak operating and financial
performance, and a deteriorating liquidity position due to
increased working capital requirements because of supply chain
constraints. ORBCOMM's third-quarter revenue and EBITDA declined 4%
and 27% year over year, respectively, primarily due to component
shortages. To combat the shortages, ORBCOMM has been advancing
payments to a key manufacturer to secure more inventory. This,
combined with higher component and freight costs, other operating
costs, and lower order fulfillment, has put pressure on its working
capital. While S&P expects pre-paid inventory to benefit working
capital in future periods as inventory is shipped, component and
other operating costs could remain elevated if supply chain issues
persist and shipping volumes remain subdued. ORBCOMM recorded a
free operating cash flow deficit of $9 million during the third
quarter of 2022, prompting a $13 million drawdown of its revolving
credit facility. Following the drawdown, it had $5 million of cash
and $7 million of availability under the revolver as of Sept. 30,
2022. S&P said, "Given our expectation for continued pressure on
its working capital and ongoing cash burn due to additional
inventory build in the fourth quarter, we believe ORBCOMM needs to
obtain external funding within the next couple months to sustain
operations while component shortages weigh on its ability to
fulfill customer orders."
S&P said, "However, we believe ORBCOMM has good prospects to raise
external capital. We believe it is highly likely that ORBCOMM
attracts some form of near-term bridge financing given its sizable
manufacturing and demand backlog and financial sponsor-backing.
That said, absent a cash infusion, we project the company could
exhaust its liquidity by year end."
CreditWatch
The CreditWatch placement reflects the potential for a downgrade,
which could exceed one notch. This will depend on ORBCOMM's ability
to obtain short-term financing to shore up its liquidity position.
S&P said, "We expect to resolve the CreditWatch placement over the
next few weeks. If ORBCOMM receives a cash infusion, as expected,
we will also revisit our projected credit metrics to determine if a
lower rating is warranted. We will be considering the company's
backlog of demand as well as execution risk associated with ongoing
supply chain challenges and shifts in manufacturing and procurement
practices."
ORIGINCLEAR INC: Opens $25M Equity Line With GHS Investments
------------------------------------------------------------
OriginClear Inc. said it has entered an Equity Financing Agreement
with GHS Investments. Pursuant to the Agreement, GHS has agreed to
purchase up to $25.0 million in registered common stock, with
timing and amounts of the purchases to be determined at the sole
discretion of OCLN.
"While we develop our innovative water asset program funding
industrial water treatment projects, we are also interested in
cleaning up old commitments, with focus on simplifying our capital
structure," said Riggs Eckelberry, OriginClear CEO. "The Agreement
will enable us to pursue this goal among others, fairly and at our
own pace. We appreciate the confidence that GHS has placed in
us."
GHS is a reputable private investment and management group
providing financial solutions for high-potential small-cap
enterprises.
On Aug. 16, 2022, OCLN reported that for the three months ended
June 30, 2022, revenue increased by 240% compared to the same
period last year; while Gross profit increased by 288%.
Loss from operations for the three months ended June 30, 2022,
narrowed by $1,203,179 to $(726,500). Among other expenditures,
the Company is investing in the new Water On Demand initiative,
which seeks to further accelerate sales by letting customers pay
for their systems as they go, without the need for capital
expenditure or water expertise.
About OriginClear
Headquartered in Clearwater, Florida, Originclear, Inc. --
www.originclear.tech -- is a water technology company which has
developed in-depth capabilities over its 14-year lifespan. Those
technology capabilities have now been organized under the umbrella
of OriginClear Tech Group.
OriginClear reported a net loss of $2.12 million for the year ended
Dec. 31, 2021. As of June 30, 2022, the Company had $5.01 million
in total assets, $17.70 million in total liabilities, $12.18
million in commitments and contingencies, and a total shareholders'
deficit of $24.87 million.
Houston, Texas-based M&K CPAS, PLLC, the Company's auditor since
2019, issued a "going concern" qualification in its report dated
April 6, 2022, citing that the Company suffered a net loss from
operations and has a net capital deficiency, which raises
substantial doubt about its ability to continue as a going concern.
PEAK PROPERTY: $422.5K Sale of Two Properties in Denver Approved
----------------------------------------------------------------
Judge Kimberly H. Tyson of the U.S. Bankruptcy Court for the
District of Colorado authorized Peak Property Group, LLC's sale of
the following:
a. 2700 S. Holly Street #112, Denver, Colorado 80222, to 2000
Residential Trust for $190,000; and
b. 2700 S. Holly Street #221, Denver, Colorado 80222, to
Alprintis Bohannan and Levi Obviate for $232,500.
The Agreements attached to the motion as Exhibits A and B are
approved.
The Debtor is authorized to sell the Properties free and clear of
existing liens and encumbrances. Net proceeds from sale of the
Properties will be paid to USA Loans LLC.
The 14-day stay imposed under Fed. R. Bankr. P. 6004(h) is waived.
About Peak Property Group
Peak Property Group LLC owns four properties in Denver, Colo., and
La Quinta, Calif., having an aggregate comparable sale value of
$1.09 million.
Peak Property Group sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. Colo. Case No. 20-16088) on Sept. 12,
2020. Kip Korthuis, sole member, signed the petition. At the time
of the filing, the Debtor disclosed $1,102,686 in assets and
$1,685,781 in liabilities. Judge Kimberley H. Tyson oversees the
case. Shilliday Law, PC is the Debtor's legal counsel.
PECO ELECTRIC: Continued Operations to Fund Plan Payments
---------------------------------------------------------
PECO Electric Incorporated filed with the U.S. Bankruptcy Court for
the Eastern District of North Carolina a Disclosure Statement
describing Chapter 11 Plan dated October 27, 2022.
The Debtor is a North Carolina corporation engaged in the business
of operating an electrical company. PECO Electric has been in
business since approximately 1979, however, the Debtor was not
formed until 1993.
In 2008, Thomas Ballard and another employee of the Debtor
purchased all of the shares of the Debtor from the founder. In
August 2021, the other employee and shareholder formed a separate
electrical company, stopped working with the Debtor, and hired
several employees from the Debtor, leaving the Debtor with debts
and insufficient employees to accomplish the current work in
process.
The Debtor filed a complaint against the former shareholder for,
among other causes of action, usurping corporate opportunities. The
Debtor resolved the complaint with the former shareholder but
incurred significant debt in its attempts to hire additional
employees and manage its large workload. The Debtor obtained short
term financing, but the terms of the financing were burdensome and
beyond what the Debtor could pay with its reduced cash flow. The
Debtor filed this Chapter 11 to stop a complaint and collection
activities filed by one of the short-term lenders.
The Debtor earns income from electrical work. The Debtor has
significant work-in-progress in addition to a good reputation in
its industry. The Debtor believes that restructuring its loans with
Kapitus, LLC, one of the short-term financers, its loans with
First-Citizens Bank & Trust Company for seven vehicles, its loan
with PNC Bank for equipment, and payment terms regarding its
vendors and other, short-term lenders, will enable the Debtor to
make payments to creditors.
The Plan contemplates a reorganization of debts and continuation of
the Debtor's business. In accordance with the Plan, the Debtor
intends to satisfy creditor claims from income earned through
continued operations.
Class 7 consists of General Unsecured Claims. The approximate total
of general unsecured claims based on claims filed or scheduled, and
projected deficiency claims, as of the date of the filing of this
Plan is $442,564.55. In accordance with the liquidation analysis,
the Debtor is required to pay allowed claims of its unsecured
creditors the sum of no less than $247,900.98.
The Debtor proposes to pay the allowed general unsecured creditors
in full in 40 equal quarterly payments with interest at the rate
allowed by 28 U.S.C. § 1961 on the Effective Date. Quarterly
payments shall commence on the earlier of January 15th, April 15th,
July 15th, or October 15th following the Effective Date and shall
continue quarterly thereafter. All payments to this class shall be
distributed pro rata. For feasibility purposes, the Debtor
estimates that its quarterly payments shall be in the amount of
$13,872.17. This class will be impaired.
The Debtor proposes to make payments under the Plan from income
earned and donations received from continued operations.
A full-text copy of the Disclosure Statement dated October 27,
2022, is available at https://bit.ly/3fmO6kI from PacerMonitor.com
at no charge.
Debtor's Counsel:
Jonathan Eric Friesen, Esq.
Gillespie & Murphy, P.A.
PO Drawer 888
New Bern, NC 28563
Phone: 252-636-2225
Fax: 252-636-0625
Email: jef@gillespieandmurphy.com
About Peco Electric Inc.
Peco Electric Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.C. Case No. 22-01444) on July 1,
2022. In the petition signed by Thomas Ballard, Jr., president, the
Debtor disclosed up to $50,000 in assets and up to $1 million in
liabilities.
Judge Joseph N. Callaway oversees the case.
Jonathan E. Friesen, Esq., at Gillespie & Murphy PA is the Debtor's
legal counsel.
PYRAMID AUTO: Seeks to Hire Orville & McDonald Law as Counsel
-------------------------------------------------------------
Pyramid Auto Group, Inc. seeks approval from the U.S. Bankruptcy
Court for the Northern District of New York to employ Orville &
McDonald Law, PC as its legal counsel.
The firm will render these services:
(a) advise the Debtor regarding its powers and duties in the
continued operation of its business and in the management of its
property;
(b) take necessary action to avoid liens against the Debtor's
property, remove restraints against its property and such other
actions to remove any encumbrances or liens which are avoidable;
(c) take necessary action to enjoin and stay until final
decree herein any attempts by secured creditors to enforce liens
upon the Debtor's property;
(d) represent the Debtor in any proceedings which may be
instituted in this court by creditors or other parties during this
proceeding;
(e) prepare legal papers; and
(f) perform all other legal services for the Debtor.
The hourly rates of the firm's counsel and staff are as follows:
Zachary D. McDonald $250
Peter A. Orville $350
Non-lawyer Staff $125
In addition, the firm will seek reimbursement for expenses
incurred.
The firm also requires a retainer in the amount of $5,000 from the
Debtor.
Zachary McDonald, Esq., an attorney at Orville & McDonald Law,
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:
Zachary D. McDonald, Esq.
Orville & McDonald Law, PC
30 Riverside Dr.
Binghamton, NY 13905
Telephone: (607) 770-1007
About Pyramid Auto Group
Pyramid Auto Group, Inc. filed a petition for relief under Chapter
11 of the Bankruptcy Code (Bankr. N.D.N.Y. Case No. 22-30702) on
Oct. 24, 2022, with up to $500,000 in assets and up to $100,000 in
liabilities. David Heffernan, president and owner, signed the
petition.
Judge Wendy A. Kinsella oversees the case.
Zachary D. McDonald, Esq., at Orville & McDonald Law, PC serves as
the Debtor's counsel.
QUEST SOFTWARE: Bank Debt Trades at 38% Discount
------------------------------------------------
Participations in a syndicated loan under which Quest Software Inc
is a borrower were trading in the secondary market around 62.125
cents-on-the-dollar during the week ended Fri., October 28, 2022,
according to Bloomberg's Evaluated Pricing service data.
The USD765 million facility is a term loan. The loan is scheduled
to mature in 2030. As of October 28, 2022, the amount was fully
drawn and outstanding.
Quest Software, also known as Quest, is a privately held software
company headquartered in Aliso Viejo, California States. Quest
provides cloud management, software as a service, security,
workforce mobility, and backup & recovery.
QUORUM HEALTH: $732M Bank Debt Trades at 31.5% Discount
-------------------------------------------------------
Participations in a syndicated loan under which Quorum Health Corp
is a borrower were trading in the secondary market around 68.5
cents-on-the-dollar during the week ended Fri., October 28, 2022,
according to Bloomberg's Evaluated Pricing service data.
The USD732 million facility is a term loan. The loan is scheduled
to mature in April 2025. As of October 28, 2022, USD717 million
of the amount was drawn and outstanding.
Quorum Health -- https://quorumhealth.com/ -- is an operator of
general acute care hospitals.
RACKSPACE TECHNOLOGY: Bank Debt Trades at 35.5% Discount
--------------------------------------------------------
Participations in a syndicated loan under which Rackspace
Technology Global Inc is a borrower were trading in the secondary
market around 64.5 cents-on-the-dollar during the week ended Fri.,
October 28, 2022, according to Bloomberg's Evaluated Pricing
service data.
The USD2.3 billion facility is a term loan. The loan is scheduled
to mature in February 2028. As of October 28, 2022, USD2.26
billion of the amount was drawn and outstanding.
Rackspace Technology Global, Inc., supports and manages cloud
platforms, as well as offers managed hosting, colocation, security,
data processing, and enterprise application development.
REALD INC: Bank Debt Trades at 45% Discount
-------------------------------------------
Participations in a syndicated loan under which RealD Inc is a
borrower were trading in the secondary market around 54.5
cents-on-the-dollar during the week ended Fri., October 28, 2022,
according to Bloomberg's Evaluated Pricing service data.
The USD260 million facility is a term loan. The loan is scheduled
to mature in November 2023. As of October 28, 2022, the amount
was fully drawn and outstanding.
RealD Inc. is a private company known for its RealD 3D system,
which is used for projecting films in stereoscopic 3D using
circularly polarized light.
RED PLANET BORROWER: Bank Debt Trades at 37.5% Discount
-------------------------------------------------------
Participations in a syndicated loan under which Red Planet Borrower
LLC is a borrower were trading in the secondary market around 62.5
cents-on-the-dollar during the week ended Fri., October 28, 2022,
according to Bloomberg's Evaluated Pricing service data.
The USD1.4 billion facility is a term loan. The loan is scheduled
to mature in September 2028. As of October 28, 2022, USD1.386
billion of the amount was drawn and outstanding.
Red Planet Borrower, LLC (dba Liftoff), headquartered in Redwood
City, Calif., is an independent mobile app marketing and
advertising platform. The company was formed in September 2021
through the combination of Liftoff Mobile, Inc. and Vungle Inc.,
both portfolio holdings of Blackstone Inc., which retains majority
ownership of the combined entity.
REGIONAL HEALTH: Consummates HUD Refinancing of Senior Mortgages
----------------------------------------------------------------
Regional Health Properties Inc., through its wholly-owned
subsidiaries, consummated a HUD refinancing of its senior mortgages
on three skilled nursing facilities in Ohio. Funding was provided
by Newpoint Real Estate Capital LLC pursuant to three HUD
guaranteed secured Healthcare Facility Notes. Proceeds from the
HUD Notes were used to pay off existing HUD guaranteed secured
mortgages and pay transaction costs. Newpoint is the servicer on
other loans extended to the Company.
The aggregate principal amount of the three HUD Notes is
$7,777,900, and the interest rate on the three HUD Notes is 3.97%
fixed for the full term of each HUD Note. The Northwood HUD Note
has a principal amount of $4,986,800 and matures on Nov. 1, 2052.
The Greenfield HUD Note has a principal amount of $1,951,800 and
matures on Nov. 1, 2052. The Pavilion HUD Note has a principal
amount of $839,300 and matures on Dec. 1, 2039. Payments of
principal and interest on the HUD Notes commenced on Oct. 1, 2022.
Each HUD Note is secured by a Healthcare Deed to Secure Debt,
Security Agreement and Assignment of Rents covering the
facilities.
Newpoint may declare the loans, accrued interest and any other
amounts immediately due and payable upon certain customary events
of default.
About Regional Health Properties
Regional Health Properties, Inc. (NYSE American: RHE) (NYSE
American: RHEpA) -- http://www.regionalhealthproperties.com-- is
a self-managed healthcare real estate investment company that
invests primarily in real estate purposed for senior living and
long-term healthcare through facility lease and sub-lease
transactions.
Regional Health a net loss of $1.18 million for the year ended Dec.
31, 2021, and a net loss of $688,000 for the year ended Dec. 31,
2020. As of June 30, 2022, the Company had $99.56 million in total
assets, $93.35 million in total liabilities, and $6.21 million in
total stockholders' equity.
REVLON CONSUMER: $85M Bank Debt Trades at 43% Discount
------------------------------------------------------
Participations in a syndicated loan under which Revlon Consumer
Products Corp is a borrower were trading in the secondary market
around 57.2 cents-on-the-dollar during the week ended Fri., October
28, 2022, according to Bloomberg's Evaluated Pricing service data.
The USD85 million facility is a term loan. The loan is scheduled
to mature in June 2025. As of October 28, 2022, USD83.9 million
of the amount was drawn and outstanding.
Revlon, Inc., is an American multinational company dealing in
cosmetics, skin care, fragrance, and personal care.
REVLON CONSUMER: Bank Debt Trades at 43% Discount
-------------------------------------------------
Participations in a syndicated loan under which Revlon Consumer
Products Corp is a borrower were trading in the secondary market
around 57.314 cents-on-the-dollar during the week ended Fri.,
October 28, 2022, according to Bloomberg's Evaluated Pricing
service data.
The USD880 million facility is a term loan. The loan is scheduled
to mature in June 2025. As of October 28, 2022, US$869 million of
the amount was drawn and outstanding.
Revlon, Inc., is an American multinational company dealing in
cosmetics, skin care, fragrance, and personal care.
RGIS SERVICES: Moody's Withdraws 'B3' Corporate Family Rating
-------------------------------------------------------------
Moody's Investors Service has withdrawn RGIS Services, LLC (NEW)'s
ratings, including its B3 corporate family rating, B3-PD
probability of default and B3 senior secured bank credit facility
rating. The stable outlook has been withdrawn.
RATINGS RATIONALE
Moody's has decided to withdraw the ratings for its own business
reasons.
COMPANY PROFILE
RGIS Services, LLC (NEW) ("the company"), a wholly-owned subsidiary
of RGIS Holdings, LLC (Old), provides inventory counting services
primarily to retailers throughout South America, Asia, Australia,
and Europe. The company is owned by its former lenders following
the 2020 restructuring, including funds affiliated with HPS
Investment Partners, LLC and Black Diamond Capital Management
L.L.C.
RICHARD D. CULLINAN: Judge Rejects Reinstatement of Security Deed
-----------------------------------------------------------------
In the adversary case titled IN RE: RICHARD DOUGLAS CULLINAN,
Chapter 11, Debtor. COASTAL STATES BANK, Plaintiff, v. RICHARD
DOUGLAS CULLINAN CHRISTINA M. CULLINAN, FIFTH THIRD BANK, NATIONAL
ASSOCIATION, AND CREDIBILITY CAPITAL, INC., Defendants, Adv. Proc.
No. 22-5078, (Bankr. N.D. Ga.), Bankruptcy Judge Wendy L. Hagenau
denies Coastal States Bank's claims for rescission and declaratory
judgment and reinstatement of the First Security Deed.
On Aug. 21, 2017, Richard D. Cullinan ("Debtor") and his wife,
Christina M. Cullinan obtained a loan of $404,969 from Cornerstone
Bank. As evidence of the loan, the Debtor executed a promissory
note as well as a security deed ("First Security Deed") in favor of
Cornerstone regarding the Debtor's property at 305 Cannady Court,
Atlanta, GA 30350. On same date, the Debtor and Ms. Cullinan also
obtained a Home Equity Line of Credit and executed a second
security deed in favor of Cornerstone ("Second Security Deed"). On
Jan. 16, 2020, Cornerstone executed a cancellation of Deed to
Secure Debt of the First Security Deed ("Cancellation"), which was
recorded in the Fulton County, Georgia land records. At the time
the Cancellation was recorded, the loan was not paid in full. In
2021, Coastal States Bank purchased Cornerstone Bank and became the
holder of the Debtor's promissory note.
The Debtor filed for relief under Chapter 11 of the Bankruptcy Code
on Feb. 17, 2022. Thereafter, the Debtor sought and was granted
authority from the Court to sell the real property in question. The
sale closed on May 27, 2022. The Second Security Deed and expenses
were paid at the closing, leaving $704,788 in proceeds. Then, the
Debtor obtained authority from the Court to disburse all of the
remaining proceeds except for $377,657, representing CSB's asserted
first priority lien on the Property.
CSB then filed the complaint seeking rescission of the Cancellation
and a declaratory judgment that the First Security Deed remains in
full force and effect. In its motion for summary judgment, CSB
contends the Cancellation was recorded by mistake before the loan
was paid in full, Debtor was on inquiry notice that the
Cancellation was recorded in error, and rescission is appropriate.
CSB also contends that the existence of the Second Security Deed
and two judgment liens constituted notice that would give rise to a
duty to inquire as to whether the cancellation of the First
Security Deed was in error.
On the other hand, the Debtor and Ms. Cullinan contend that the
debtor-in-possession stands in the position of a bona fide
purchaser under Section 544(a)(3) of the Bankruptcy Code who is
entitled to rely on the Cancellation, regardless of Debtor's actual
knowledge that the First Security Deed had not been paid in full.
No question exists that the Cancellation was recorded in error
because, at the time it was recorded, the loan had not been paid in
full. CSB's predecessor authorized the filing and the Cancellation
appeared in the property records.
The Court rules that a cancellation will not be rescinded merely
because the termination statement was filed inadvertently. The
Court explains that Georgia law is clear that rescission, which is
a form of equitable relief, will not be granted to reinstate a
security deed where such reinstatement would interfere with a bona
fide purchaser, like the Chapter 11 debtor-in-possession. The Court
explains further that while the Debtor was aware of the existing
First Security Deed (and that the loan had not been paid in full),
such actual knowledge is not imputed to the debtor-in-possession,
and the chain of title contained no indication that the
Cancellation was deficient or incorrect that would obligate the
bona fide purchaser to make inquiry if the First Security Deed
remained in effect.
The Court concludes that as Chapter 11 debtor-in possession, the
Debtor qualifies as a hypothetical bona fide purchaser and CSB is
not entitled to reinstatement of its mistakenly cancelled First
Security Deed. Accordingly, the Court denies CSB's claims for
rescission and declaratory judgment are denied, and declares that
CSB's claim is deemed wholly unsecured.
A full-text copy of the Order dated Oct. 27, 2022, is available at
https://tinyurl.com/4ezrrhbb from Leagle.com.
The Chapter 11 case is In re Richard Douglas Cullinan, Case No.
22-51326 (Bankr. N.D. Ga.), filed on February 17, 2022.
ROBERTSHAW US HOLDING: Bank Debt Trades at 35% Discount
-------------------------------------------------------
Participations in a syndicated loan under which Robertshaw US
Holding Corp is a borrower were trading in the secondary market
around 64.9 cents-on-the-dollar during the week ended Fri., October
28, 2022, according to Bloomberg's Evaluated Pricing service data.
The USD110 million facility is a term loan. The loan is scheduled
to mature in February 2026. As of October 28, 2022, the amount was
fully drawn and outstanding.
Robertshaw US Holding Corp. designs and manufactures
electro-mechanical solutions, mechanical combustion systems, and
electrical controls primarily for use in residential and commercial
appliances, HVAC and transportation applications.
RUDRA INVESTMENTS: Unsecureds Will Get 50% of Claims in Sale Plan
-----------------------------------------------------------------
Rudra Investments, LLC, submitted a Combined Plan of Reorganization
and Disclosure Statement.
Pursuant to an agreement between Debtor and its primary secured
Creditors, CPIF California, LLC and HDDA, Inc., Debtor will market
its hotel property (the "Hotel") for sale.
While the Hotel is being marketed, Debtor shall make monthly
payments. 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. The monthly payments shall be made by the 29th day of
each month.
The primary business cause of the Chapter 11 filing was the drastic
reduction in room revenue over the past several years from the
Covid pandemic. The Hotel's revenue for 2020 was $422,000 but
improved in 2021 to $2,069,000. Performance during 2022 has
steadily improved.
The immediate cause for this Chapter 11 filing was litigation
initiated by creditors CPIF and HDDA. The lawsuits were the initial
steps to the appointment of a receiver and a writ of possession for
the Hotel's personal property. In addition, CPIF recorded a Notice
of Trustee's Sale with a nonjudicial foreclosure sale set for June
24, 2022. Debtor needed to file this case to prevent losing the
Hotel and to give it adequate time to seek a reorganization.
Class 2 consists of General Unsecured Claims. 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. This class is impaired and is entitled to vote on
confirmation of the Plan.
Class 3 consists of Interests in the Debtor. The holders of
interests in the Debtor will retain their interests and their
rights will not be impaired by the Plan.
On the Effective Date, all property of the estate and interests of
the Debtor will vest in the reorganized Debtor pursuant to §
1141(b) of the Bankruptcy Code free and clear of all claims and
interests except as provided in this Plan. The property that will
vest in the Reorganized Debtor shall include any claims to tax
refunds (including Employee Retention Credits), any claims against
related entities and avoidance actions under Chapter 5 of Title
11.
Plan performance is based upon the sale of the Hotel. Based on
Debtor's consultation with its broker, CBRE, it believes it is a
reasonable to conclude that the sale of the Hotel will be
sufficient to pay the claims pursuant to the terms of the Plan.
A full-text copy of the Combined Plan and Disclosure Statement
dated October 27, 2022, is available at https://bit.ly/3NqGwC9 from
PacerMonitor.com at no charge.
Debtor's Counsel:
Stephen D. Finestone, Esq.
Jennifer C. Hayes, Esq.
Kimberly S. Fineman, Esq.
Finestone Hayes LLP
456 Montgomery Street, 20th Floor
San Francisco, CA 94104
Tel: (415) 421-2624
Fax: (415) 398-2820
Email: sfinestone@fhlawllp.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.
RUNNER BUYER: Bank Debt Trades at 32% Discount
----------------------------------------------
Participations in a syndicated loan under which Runner Buyer Inc is
a borrower were trading in the secondary market around 68
cents-on-the-dollar during the week ended Fri., October 28, 2022,
according to Bloomberg's Evaluated Pricing service data.
The USD500 million facility is a term loan. The loan is scheduled
to mature in October 2028. As of October 28, 2022, the amount was
fully drawn and outstanding.
Headquartered in New York, NY, Runner Buyer, Inc., dba RugsUSA, is
an e-commerce provider of rugs and home decor products through its
website rugsausa.com and e-commerce marketplaces.
SAS AB: To Start Filing Monthly Operating Results as Part of Ch.11
------------------------------------------------------------------
Dominic Chopping of Dow Jones Newswire reports that SAS AB said
Wednesday, October 26, 2022, that it will begin filing monthly
operating reports to the U.S. bankruptcy court as part of its
voluntary chapter 11 process.
The Scandinavian airline filed for chapter 11 in July as it seeks
to push through a comprehensive financial restructuring to cut
costs and raise capital under the supervision of the U.S. court
system.
For the 11 months to Sept. 30, SAS said its revenue was 28.36
billion Swedish kronor ($2.58 billion) while its net loss totaled
SEK7.12 billion.
Total assets at Sept. 30 stood at SEK66.16 billion, total
liabilities at SEK66.07 billion while cash and cash equivalents was
SEK10.15 billion.
The financial information hasn't been audited or reviewed by SAS's
auditor, it said.
About Scandinavian Airlines (SAS AB)
SAS SAB, Scandinavia's leading airline, with main hubs in
Copenhagen, Oslo and Stockholm, is flying to destinations in
Europe, USA and Asia. Spurred by a Scandinavian heritage and
sustainable values, SAS aims to be the global leader in sustainable
aviation. The airline will reduce total carbon emissions by 25
percent by 2025, by using more sustainable aviation fuel and our
modern fleet with fuel-efficient aircraft. In addition to flight
operations, SAS offers ground handling services, technical
maintenance and air cargo services. SAS is a founder member of the
Star Alliance, and together with its partner airlines offers a wide
network worldwide. On the Web: https://www.sasgroup.net
SAS AB and its affiliates, including Scandinavian Airlines Systems
Denmark-Norway-Sweden and Scandinavian Airlines of North America
Inc., sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. S.D.N.Y. Case No. 22-10925) on July 5, 2022. In the
petition filed by Erno Hildén, as authorized representative, the
Debtor SAS AB estimated assets between $10 billion and $50 billion
and liabilities between $1 billion and $10 billion.
Weil, Gotshal & Manges LLP is serving as global legal counsel and
Mannheimer Swartling Advokatbyra AB is serving as Swedish legal
counsel to SAS. Seabury Securities LLC and Skandinaviska Enskilda
Banken AB are serving as investment bankers, Seabury is also
serving as restructuring advisor. FTI Consulting is serving as
financial advisor. Kroll Restructuring Advisors is the claims
agent.
SHUTTERFLY LLC: Bank Debt Trades at 38% Discount
------------------------------------------------
Participations in a syndicated loan under which Shutterfly LLC is a
borrower were trading in the secondary market around 62
cents-on-the-dollar during the week ended Fri., October 28, 2022,
according to Bloomberg's Evaluated Pricing service data.
The USD1.105 billion facility is a term loan. The loan is
scheduled to mature in September 2026. As of October 28, 2022, the
amount was fully drawn and outstanding.
Shutterfly, LLC. is an American photography, photography products,
and image sharing company, headquartered in Redwood City,
California.
STATERA BIOPHARMA: Nasdaq Grants Request for Continued Listing
--------------------------------------------------------------
Statera Biopharma, Inc. received a determination from a Nasdaq
Hearings Panel on Oct. 26, 2022, granting the Company's request for
the continued listing of its common stock on The Nasdaq Capital
Market, subject to the Company's satisfaction of certain interim
milestones and, ultimately, the Company's compliance with all
applicable criteria for continued listing on Nasdaq, including the
$1.00 bid price and $2.5 million stockholders' equity requirements
as set forth in Nasdaq Listing Rules 5550(a)(1) and 5550(b)(2),
respectively, by no later than Jan. 31, 2023.
The Company said it is taking definitive steps to timely evidence
compliance with the terms of the Panel's decision; however, there
can be no assurance that it will be able to do so.
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.
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 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.
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.
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.
STORED SOLAR: Seeks to Tap Spinglass as Restructuring Advisor
-------------------------------------------------------------
Stored Solar Enterprises, Series LLC seeks approval from the U.S.
Bankruptcy Court for the District of Maine to employ Spinglass
Management Group, LLC as restructuring advisor.
The firm will render these services:
(a) review historical financial information and rolling and
ongoing budgets of the Debtor;
(b) conduct site visits to meet key managers responsible for
attaining projected performance levels;
(c) review 13-week cash flow projections and business plans to
assess feasibility;
(d) assist with the review of ongoing reporting;
(e) facilitate negotiations with secured creditors;
(f) attend meetings with senior management to communicate
observations and participate in business plans; and
(g) other activities that, in the Debtor's estimation, create
value in the restructuring process.
The hourly rates of the firm's professionals are as follows:
Mark F. Stickney $330
Managers $150 - $220
Consultants $90 - $150
The firm also requires a retainer in the amount of $10,000 from the
Debtor.
Mark Stickney, a member of Spinglass Management Group, disclosed in
a court filing that the firm is a "disinterested person" as that
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Mark F. Stickney
Spinglass Management Group, LLC
16 Casco Street, 3rd FLOOR
Portland, ME 04101
Telephone: (207) 956-6601
Email: mstickney@spinglassllc.com
About Stored Solar Enterprises, Series
Stored Solar Enterprises, Series LLC owns and operate seven
biomass-fueled, renewable energy generating facilities located in
Maine, Massachusetts, and New Hampshire. The plants produce
electric energy, which is transmitted into, and earns payments
from, the ISO New England power grid. Stored Solar has 87
employees.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Me. Case No. 22-10191) on Sept. 14,
2022. In the petition signed by its manager, William Harrington,
the Debtor disclosed up to $100 million in assets and up to $50
million in liabilities.
Judge Michael A. Fagone oversees the case.
The Debtor tapped George J. Marcus, Esq., at Marcus Clegg as its
legal counsel and Spinglass Management Group, LLC as its
restructuring advisor.
SUSSEX RANDOLPH: Judge Remands Valley National Bank Eviction Case
-----------------------------------------------------------------
District Judge Claire C. Cecchi remands the case captioned VALLEY
NATIONAL BANK, Plaintiff, v. BURRINI'S OLDE WORLD MARKET, INC.,
Defendant, Civil Action No. 22-00919, (D.N.J.), adopting the
Magistrate Judge Andre M. Espinosa's July 29, 2022 Report and
Recommendation ("R&R") that the case be remanded to state court.
This is an action for eviction, between the Plaintiff Valley
National Bank ("VNB"), as landlord and the Defendant Burrini's Olde
World Market, Inc., as tenant. In the Eviction Complaint, Valley
National Bank alleges Burrini owes over $425,000 in rent under a
lease for the Property, which was entered into by Sussex Randolph
Building LP's predecessor-in-interest (B&B Associates, Ltd.) and
Burrini on Nov. 1, 1992. The Bank claims that it is entitled to
receive rent due under the Lease pursuant to: (1) an Absolute
Assignment of Leases and Rent, executed by Sussex in favor of
Valley National Bank's predecessor-in-interest (Oritani Bank) on
Dec. 23, 2008 and (2) a Consent Order Directing Payment of Assigned
Rents to Oritani Bank and Vacating the Automatic Stay, entered by
the New Jersey Bankruptcy Court in Case No. 14-34505, on Sept. 2,
2015.
The trial in the Eviction Action was set to begin on Feb. 24, 2022.
However, on Feb. 22, 2022, the Eviction Action was removed to this
Court by nonparty Sussex. In its Notice of Removal, Sussex asserted
that this Court has subject matter jurisdiction over the Eviction
Action because the action is related to a Chapter 11 bankruptcy
action Sussex voluntarily initiated in this District in the case
Sussex Building, L.P., Debtor, and assigned Case No. 22-11369-VFP.
Immediately after filing the Notice of Removal, Sussex applied to
the District Court for an order referring the Eviction Action to
the Bankruptcy Court, to be opened as an adversary proceeding in
the Bankruptcy Action.
Valley National Bank filed a motion to remand the Eviction Action
to state court on three grounds: (1) the case was improperly
removed by Sussex because Sussex is not a "party" to the removed
action, as required under the bankruptcy removal statute; (2) the
Court lacks jurisdiction under Section 1334, the foundation for
valid removal under Section 1452(a); and (3) even assuming the
Court has subject matter jurisdiction, it must abstain from
exercising it under 28 U.S.C. Section 1334(c)(2). Additionally,
Valley National Bank sought an award of fees and costs in
connection with bringing the motion to remand due to the purported
impropriety of removal by Sussex.
In his R&R, Judge Espinosa rejected Sussex's argument that the
state court granted Sussex leave to intervene in the Eviction
Action. Judge Espinosa also found unpersuasive Sussex's contention
that "party" should be understood to mean "party in interest."
Further, Judge Espinosa found that Sussex had not shown itself to
be the "real party in interest" because it conceded it had granted
an Assignment to Valley National Bank's predecessor-in-interest
(Oritani Bank), which assigned all Burrini's rent payments and "the
right to file any claim . . . to collect and enforce the payment of
any and all rents,'" including "all measures, legal and equitable."
Additionally, Judge Espinosa rejected Sussex's argument that any
potential defect in Sussex's notice of removal was cured when
Burrini filed its own notice of removal.
However, Sussex has not offered a colorable claim that it is a
named party, nor that it has been served with process, or has
intervened in the Eviction Action. To the contrary, the record
indicates that the state court expressly clarified (and Sussex's
principal confirmed) that "Sussex is not a named party in the LT
[landlord-tenant] action" and is "not in this matter. Although
Sussex had ample opportunity to petition the state court to
intervene in the Eviction Action, it did not. Therefore, guided by
the principle that removal statutes must be narrowly construed, the
plain meaning of "party," and the case law addressing this issue,
the Court finds that Sussex has not met its burden in establishing
that it is a party to the Eviction Action under Section 1452(a).
Sussex asserts that when a party timely joins in supporting removal
by a nonparty, the original removal becomes effective and any
defect is cured. Thus, Sussex contends, Burrini's Notice of Removal
cured any defect because Burrini was clearly a party to the
Eviction Action.
The Court finds, however, that Sussex has not asserted a right to
be substituted in the Eviction Action. In fact, the Court notes
that Sussex has made no real effort to intervene in the Eviction
Action, despite ample opportunity, and it has clarified to the
state court that it was not a party when asked. Moreover, the Court
points out that Sussex has acknowledged that it has assigned
Burrini's rents to Valley National Bank. Accordingly, the Court
determines that Sussex has not shown that it is sufficiently
directly involved in the Eviction Action.
A full-text copy of the Opinion dated Oct. 25, 2022, is available
at https://tinyurl.com/3m6yjsr5 from Leagle.com.
About Sussex Randolph Building
Sussex Randolph Building is a Single Asset Real Estate debtor (as
defined in 11 U.S.C. Section 101(51B)). It owns a commercial
retail building of approximately 8,000 square feet located at 1204
Sussex Turnpike, Randolph, New Jersey.
Sussex Randolph Building previously sought bankruptcy protection
(Bankr. D.N.J. Case No. 14-34505) on Dec. 3, 2014. On Dec. 18,
2015, SRB obtained confirmation of its first modified plan of
reorganization in its prior bankruptcy proceeding, which, inter
alia, resulted in the reinstatement of the mortgage due VNB's
predecessor in interest, Oritani, requiring monthly installments of
$12,578.85. However, BOWM stopped paying rent, due in large part
due to the COVID-19 pandemic that affected all retail business
enterprises from and after March 2020.
In order to delay VNB's eviction action and to restructure the
mortgage indebtedness with VNB, Sussex Randolph Building, L.P.,
again sought Chapter 11 protection (Bankr. D.N.J. Case No.
22-11369) on Feb. 22, 2022. The Debtor is represented by
Rabinowitz, Lubetkin & Tully, LLC.
SWAP.COM INC: Sale of Personal Property to Jay Group for $275K OK'd
-------------------------------------------------------------------
Judge Joseph N. Callaway of the U.S. Bankruptcy Court for the
Eastern District of North Carolina authorized Swap.com, Inc.'s
private sale of personal property to Jay Group, Ltd., for
$275,000.
The Sale is free and clear of all liens, claims, encumbrances, or
other interests of any kind or nature whatsoever.
Upon completion of the sale of the Property to Successful Bidder,
the Debtor's counsel will disburse the closing proceeds in
accordance with the terms of the Debtor's proposed Plan of
Reorganization, except for the items specifically authorized by
prior Orders of this Court including, but not limited to, approved
fee applications for professionals. In addition, the counsel for
the Debtor is authorized to disburse at closing the sum of $11,000
to Helpsy Holdings PBC, which represents the Break-Up Fee of 4% of
the final court approved purchase price.
No stay will apply to the effectiveness of the Order upon entry.
Rather, the 14day stay of the Order provided under Fed. R. Bankr.
P. 6004(h), and any other rule, is expressly waived for all
purposes, and the parties to the Overbid Purchase Agreement are
authorized to promptly close and consummate the sale of the
Property on the Closing Date as set forth in the Overbid Purchase
Agreement and pursuant to the terms and conditions thereof upon the
entry of the Order.
A copy of the Overbid Purchase Agreement is available for free at
https://tinyurl.com/3syswwds from PacerMonitor.com free of charge.
About Swap.com, Inc.
Swap.com, Inc. -- https://www.swap.com/-- is a consignment company
that helps consumers find affordable, quality secondhand apparel
for the whole family.
Swap.com, Inc., filed a petition for relief under Subchapter V of
Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.C. Case No.
22-01314) on June 16, 2022. In the petition filed by Gray King, as
president and chief executive officer, the Debtor reports
estimated assets and liabilities between $1 million and $10
million each.
Jason L. Hendren, of Hendren Redwine & Malone, PLLC, is the
Debtor's counsel.
TALEN ENERGY: Gets Court Clearance to Solicit Bankruptcy Plan Votes
-------------------------------------------------------------------
Dietrich Knauth of Reuters reports that Talen Energy Supply LLC
received court permission Wednesday, October 26, 2022, to begin
soliciting creditor votes on a bankruptcy restructuring plan that
would convert $1.4 billion in debt to equity and raise up to $1.9
billion through sale of new equity shares.
U.S. Bankruptcy Judge Marvin Isgur in Houston said he would approve
the company's disclosure statement, which describes the
reorganization plan, after revisions were made that will keep the
door open for potential overbids from outside buyers. Creditors
will then vote to approve the plan.
Talen's restructuring is supported by a group of its existing
unsecured bondholders, including funds managed by Nuveen Asset
Management LLC, Rubric Capital Management LP and Citadel. Those
bondholders agreed to convert $1.4 billion in existing debt to new
equity shares and agreed to backstop at least $1.55 billion of a
planned $1.9 billion equity offering, according to the disclosure
statement.
Talen, which filed for Chapter 11 protection in May, owns 16 energy
generation facilities in the U.S., with a mix of nuclear, natural
gas, oil and coal-powered facilities.
The company was driven to bankruptcy in part by rising natural gas
prices. Talen had used derivative contracts to limit its exposure
to commodity price volatility risks, but the company ended up being
forced to provide more cash collateral to its counterparts as
prices jumped in 2021, according to court papers.
About Talen Energy Corp.
Allentown, Pennsylvania-based Talen Energy Corp. is an independent
power producer founded in 2015. Riverstone Holdings LLC completed
its acquisition of the remaining 65% stake of Talen Energy in 2016
for $5.2 billion.
Talen Energy Corporation, through subsidiary Talen Energy Supply
LLC, is one of the largest competitive power generation and
infrastructure companies in North America. Through subsidiary
Cumulus Growth, TEC is developing a large-scale portfolio of
renewable energy, battery storage, and digital infrastructure
assets across its expansive footprint. On the Web:
https://www.talenenergy.com/
TES owns and/or controls approximately 13,000 Megawatts of
generating capacity in wholesale U.S. power markets, principally in
the Mid-Atlantic, Texas and Montana. Woodlands, Texas-based TES
runs 18 power generation facilities, at eight of which rely on
natural gas to make electricity.
Talen Energy Supply, LLC, and 71 affiliates sought Chapter 11
protection (Bankr. S.D. Tex. Lead Case No. 22-90054) on May 9,
2022. The Hon. Marvin Isgur is the case judge.
Talen Energy Corporation (TEC), its Cumulus Growth subsidiary, and
TES' LMBE subsidiaries are excluded from the in-court process.
TES has retained Weil Gotshal & Manges LLP as its legal advisor,
Evercore as its investment banker and Alvarez & Marsal as its
financial advisor for its restructuring. Kroll is the claims
agent.
TEC is represented by PJT Partners as financial advisors and Vinson
& Elkins as legal counsel.
Cumulus Growth is represented by Ardea Partners and DH Capital as
its investment bankers, and Gibson Dunn as legal counsel.
The Consenting Noteholders are represented by Kirkland & Ellis LLP
and Rothschild & Co US Inc.
TD HOLDINGS: Unit Acquires 65% Interest in Tongdow for RMB650M
--------------------------------------------------------------
Shenzhen Baiyu Jucheng Data Technology Co., Ltd., a subsidiary of
TD Holdings, Inc., entered into a set of variable interest entity
agreements with Shenzhen Tongdow Internet Technology Co., Ltd. and
Shanghai Zhuotaitong Industry Co., Ltd.
Pursuant to the terms of the VIE Agreements, Shenzhen Baiyu Jucheng
agreed to pay Shanghai Zhuotaitong a total of RMB650 million in
exchange for 65% of the equity interest of Tongdow Internet
Technology.
The parties completed the transaction On Oct. 25, 2022.
About TD Holdings
TD Holdings, Inc. is a service provider currently engaging in
commodity trading business and supply chain service business in
China. Its commodities trading business primarily involves
purchasing non-ferrous metal product from upstream metal and
mineral suppliers and then selling to downstream customers. Its
supply chain service business primarily has served as a one-stop
commodity supply chain service and digital intelligence supply
chain platform integrating upstream and downstream enterprises,
warehouses, logistics, information, and futures trading. For more
information, please visit http://ir.tdglg.com.
TD Holdings reported a net loss of $940,357 for the year ended Dec.
31, 2021, a net loss of $5.95 million for the year ended Dec. 31,
2020, and a net loss of $6.94 million for the year ended Dec. 31,
2019. As of June 30, 2022, the Company had $274.62 million in
total assets, $28.26 million in total liabilities, and $246.36
million in total equity.
THOMPSON MILLWORK: Commences Subchapter V Case
----------------------------------------------
Thompson Millwork LLC filed for chapter 11 protection in the Middle
District of North Carolina. The Debtor elected on its voluntary
petition to proceed under Subchapter V of chapter 11 of the
Bankruptcy Code.
The Debtor is a North Carolina limited liability company in the
business of building commercial millwork. It has 25 full-time
employees. It is located in Mebane, North Caroline.
According to court filings, Thompson Millwork estimates $1 million
to $10 million in debt to 50 to 99 creditors. The petition states
that funds will be available to unsecured creditors.
This bankruptcy case was necessitated by the exercise of lien
rights of certain secured creditors.
On June 14, 2019, the Debtor obtained a loan with Xenith Bank. As
security for the Xenith Bank Loan, the Debtor executed a promissory
note in favor of Xenith Bank covering all of the Debtor's
inventory, accounts, equipment, and general intangibles. Atlantic
Union Bank is the successor in interest to (or, alternatively, the
servicer of) the Xenith Bank Loan. As of the Petition Date, the
aggregate amount outstanding to Atlantic Union Bank on the Xenith
Bank Loan is approximately $205,555.
On Dec. 24, 2019, the Debtor obtained a loan with Ascentium
Capital, LLC for the purchase of equipment. As security for the
Ascentium Capital Loan, the Debtor executed a promissory note in
favor of Ascentium Capital covering equipment related to a
“lighting retrofit” in addition to all of the Debtor’s
tangible and intangible personal property. As of the Petition
Date, the aggregate amount outstanding to Ascentium Capital on the
Ascentium Capital Loan is approximately $14,000.
On June 3, 2020, the Debtor obtained a loan with the U.S. Small
Business Administration. As security for the SBA Loan, the Debtor
executed a promissory note in favor of the SBA covering all of the
Debtor's tangible and intangible personal property. As of the
Petition Date, the aggregate amount owed to the SBA on the SBA Loan
is approximately $498,000.
In September 2021, the Debtor obtained a loan with Breakout
Capital, LLC. As security for the Breakout Capital Loan, the
Debtor executed a promissory note in favor of Breakout Capital
covering all of the Debtor's tangible and intangible personal
property. As of the Petition Date, the aggregate amount owed to
Breakout Capital on the Breakout Capital Loan is approximately
$348,885.
On March 11, 2022, the Debtor obtained a loan with Libertas
Funding, LLC. As security for the Libertas Funding Loan, the
Debtor executed a promissory note in favor of Libertas Funding
covering all of the Debtor's tangible and intangible personal
property. As of the Petition Date, the aggregate amount owed to
Libertas Funding on the Libertas Funding loan is approximately
$503,613.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
Dec. 2, 2022, at 11:00 AM at Creditors Mtg Room, Greensboro.
Proofs of claim are due by Jan. 4, 2023.
About Thompson Millwork
Thompson Millwork LLC is a turnkey commercial casework and
specialty millwork provider based in Durham, North Carolina.
Thompson Millwork LLC filed a petition for relief under Subchapter
V of Chapter 11 of the Bankruptcy Code (Bankr. M.D.N.C. Case No.
22-802102) on Oct. 26, 2022. In the petition filed by Matthew
Thompson, as managing member, the Debtor reported assets and
liabilities between $1 million and $10 million.
Brian Richard Anderson has been appointed as Subchapter V trustee.
The Debtor is represented by Philip Sasser of Sasser Law Firm.
TMK HAWK PARENT: Bank Debt Trades at 47% Discount
-------------------------------------------------
Participations in a syndicated loan under which TMK Hawk Parent
Corp is a borrower were trading in the secondary market around
53.125 cents-on-the-dollar during the week ended Fri., October 28,
2022, according to Bloomberg's Evaluated Pricing service data.
The USD120 million facility is a term loan. The loan is scheduled
to mature in August 2024. As of October 28, 2022, the amount was
fully drawn and outstanding.
TMK Hawk Parent Corp. is the holding company of TriMark USA, LLC, a
foodservice equipment and supplies distributor.
TORTOISE BORROWER: Bank Debt Trades at 39% Discount
---------------------------------------------------
Participations in a syndicated loan under which Tortoise Borrower
LLC is a borrower were trading in the secondary market around 61.31
cents-on-the-dollar during the week ended Fri., October 28, 2022,
according to Bloomberg's Evaluated Pricing service data.
The USD341.8 million facility is a term loan. The loan is
scheduled to mature in January 2025. As of October 28, 2022,
USD328 million of the amount was drawn and outstanding.
Tortoise Borrower, LLC, was formed by Lovell Minnick Partners to
facilitate its acquisition of Tortoise Investments.
TRI HARBOR: Expert Testimony of Mr. Cowhey Allowed in Part
----------------------------------------------------------
In the adversary proceeding styled KAVOD PHARMACEUTICALS LLC (f/k/a
RISING PHARMACEUTICALS, LLC, f/k/a RISING PHARMACEUTICALS, INC.)
and TRI HARBOR HOLDINGS CORPORATION (f/k/a ACETO CORPORATION),
Plaintiffs, v. SIGMAPHARM LABORATORIES, LLC, Defendant, Adv. Pro.
No. 19-2053 (VFP), (Bankr. D.N.J.), Judge Vincent F. Papalia
through an Opinion dated Oct. 27, 2022, grants in part Plaintiffs'
motion to limit or bar expert testimony of Defendant's expert,
Gregory Cowhey.
Two of the nine jointly administered Debtor-entities, Kavod
Pharmaceuticals LLC f/k/a Rising Pharmaceuticals LLC f/k/a Rising
Pharmaceuticals Inc. and Tri Harbor Holdings Corp. f/k/a Aceto
Corporation ask the Court to limit or to bar the testimony of
Gregory Cowhey, the financial expert for defendant Sigmapharm
Pharmaceuticals LLC.
The Parties' conflict began when Sigmapharm asked Rising
Pharmaceuticals in May 2015 to account for an increase in reported
chargebacks, rebates and expenses against sales that reduced the
parties' shared net profits (which, under the Agreement, were paid
55% to Rising and 45% to Sigmapharm). Later that year, Sigmapharm
requested the audit provided for under section 8.6 of the
Agreement. After some exchange of data, Sigmapharm sent Rising
Pharmaceuticals a letter that largely liquidated Sigmapharm's
claims for underpaid profits from April 2009 (the beginning of the
productive life of the Agreement) through March 31, 2016 and
reduced certain of those claims to invoices. Sigmapharm still had
questions about (i) CMS (Medicaid) rebates; and (ii) a single
credit memo for $495,906. Additionally, by the end of 2017, the
Plaintiffs had paid over $9 million to Sigmapharm for a subsequent
underpayment of profits for the July 1, 2016 through June 30, 2017
fiscal year. During this period (2017 to early 2018), the parties
continued to communicate and exchange at least some information.
On March 23, 2018, Sigmapharm sent Rising Pharmaceuticals a letter
purporting to terminate the Agreement for Rising Pharmaceuticals'
alleged breach of the Agreement based in large part on the
Plaintiffs' alleged failure to provide the supporting documentation
for the Plaintiffs' profit share calculations and Sigmapharm's
asserted inability to perform the audit as a result. On that same
day, Sigmapharm also sued the Plaintiffs in the District Court
Pennsylvania on breach of contract and commercial tort claims.
The Plaintiffs argue that the Court should preclude Mr. Cowhey from
testifying at trial:
(i) about opinions that are in his Reports but that he
disavowed during the March 10, 2022 deposition;
(ii) about opinions that he advanced in his March 10, 2022
deposition that were not included in his Reports (particularly as
to lost profits and as to the allegedly flawed discount rate used
by their financial expert Ms. Laureen M. Ryan);
(iii) as to opinions that are merely conclusory or net,
particularly as he proposed no counter-methodology to Ms. Ryan's
methodology relating to her sales forecasts; as to inclusion or
exclusion of certain products in the forecast; and as to metadata.
Sigmapharm in its objection responded to these allegations by
essentially disagreeing with them in all respects:
(i) Mr. Cowhey did not disavow his Reports during his March
10, 2022 deposition; to the extent that he has not been able to
render an opinion as to damages, it is because Plaintiffs have not
given him enough data to analyze or conduct a proper audit;
(ii) Mr. Cowhey did not offer new opinions at deposition; he
already criticized Ms. Ryan's methodology (particularly as to
discount rate) in his May 18, 2021 Report and only elaborated upon
it in his deposition testimony;
(iii) Mr. Cowhey's opinions are supported by fact and
methodology included in Mr. Cowhey's critiques of Ms. Ryan's
opinions;
(iv) Mr. Cowhey's subjective critiques of Ms. Ryan's Reports
are not grounds for precluding his testimony; and
(v) Mr. Cowhey's critiques of Ms. Ryan's methodology (discount
rate, inclusion/exclusion of products, use of estimated rather than
actual sales, inability to explain discrepancy in historical
figures) are justified.50
The Court grants in part and denies in part Plaintiffs' Motion to
exclude certain portions of Mr. Cowhey's proposed expert testimony
as follows:
(1) Mr. Cowhey is precluded from testifying and will not
testify at trial as to his opinion on Sigmapharm's alleged damages
for lost profits during Audit Period I (April 2009 to March 31,
2016). Sigmapharm's spoliation argument on this motion fails for
lack of proof and because whether there was the "spoliation" of any
evidence and/or whether Plaintiffs failed to maintain and produce
transparent records that would allow for an independent audit
pursuant to the Agreement's Audit Provisions are ultimate and
critical issues of fact to be determined at the trial of this case.
However, this ruling does not apply to any previously stated
opinions by Mr. Cowhey as to Sigmapharm's alleged damages during
Audit Period II (April 1, 2016 to April 19, 2019).
(2) Mr. Cowhey will be permitted to testify as to his criticism
that Ms. Ryan utilized a companywide discount rate as opposed to a
product-line discount rate in her lost profits calculations;
provided, however, that: (i) Plaintiffs will be permitted to depose
Mr. Cowhey on this issue, at their option, before trial or during a
break in trial prior to his trial testimony; (ii) no testimony as
to any alleged flaws on the discount rate used by Ms. Laureen M.
Ryan (Plaintiffs' financial expert) will be permitted, other than
with respect to the Estimated Tax Rate and the
companywide-versus-product-line distinction; (iii) Mr. Cowhey will
not be permitted to introduce or rely upon any documents or
information that was not previously produced or provided in this
litigation; and (iv) Ms. Ryan will be permitted to address this
criticism at trial. The weight to be afforded this aspect of Mr.
Cowhey's opinion will be determined at trial after
cross-examination.
(3) Mr. Cowhey is precluded from testifying and will not
testify at trial as to the Alleged Flawed Legal Assumptions. The
Court has no trouble finding that Mr. Cowhey's criticisms of Ms.
Ryan's Report based on the Alleged Flawed Legal Assumptions are
without proper foundation and are not the proper subject of expert
testimony, especially by a nonlawyer. First, as a nonlawyer, Mr.
Cowhey is not qualified to opine on legal matters such as whether
the Agreement was properly terminated or whether Rising is entitled
to recover lost profits under the terms of the Agreement. Second,
Mr. Cowhey's opinion, to the extent it is based on the Alleged
Flawed Legal Assumptions, is not reliable for the same reasons,
i.e., he is not qualified to give it and it has no bearing on the
credibility or validity of Ms. Ryan's lost profits calculations.
His opinion as to these matters also suffers from a lack of
reliability since he testified that he did not know that this Court
had previously found that Sigmapharm breached the Termination
Provisions of the Agreement.
Mr. Cowhey may testify at trial as to: (i) the alleged flawed
assumptions and faulty logic employed by Ms. Ryan in her lost
profits calculations, including (without limitation) her Forecast
Calculations; (ii) the exclusion of Amiloride and inclusion of
Protriptyline in her lost profits analysis; (iii) the alleged
inconsistencies and conflicts in the sampling documents provided by
Plaintiffs; (iv) the changing dates and numbers in the audit
packages; (v) the use of Est. Net Revenue and Est. Gross Revenue
(on the one hand), and Actual Net Revenue (Ratable) and Actual
Gross Profit (Ratable) (on the other); (vi) his factual
observations regarding the metadata relating to the documents
produced by Plaintiffs; provided, however, that Mr. Cowhey will not
be permitted to testify as to any expert opinions, conclusions, or
interpretations of the metadata.
To the extent any specific area of proposed expert testimony by Mr.
Cowhey may not have been addressed in the Court's Opinion and the
Order, the Motion is denied on the basis that Plaintiffs'
objections go to the weight and credibility of the proposed
testimony rather than its admissibility and can be addressed on
cross-examination.
A full-text copy of the Opinion dated Oct. 27, 2022, is available
at https://tinyurl.com/43bbpzsd from Leagle.com.
About Aceto Corporation
ACETO Corporation (NASDAQ: ACET), incorporated in 1947, is focused
on the global marketing, sale and distribution of Human Health
products (finished dosage form generics and nutraceutical
products), Pharmaceutical Ingredients (pharmaceutical intermediates
and active pharmaceutical ingredients) and Performance Chemicals
(specialty chemicals and agricultural protection products).
With business operations in nine countries, ACETO distributes over
1,100 chemical compounds used principally as finished products or
raw materials in the pharmaceutical, nutraceutical, agricultural,
coatings, and industrial chemical industries. ACETO's global
operations, including a staff of 25 in China and 12 in India, are
distinctive in the industry and enable its worldwide sourcing and
regulatory capabilities.
Aceto Corporation and eight affiliates sought Chapter 11 protection
(Bankr. D.N.J. Lead Case No. 19-13448) on Feb. 19, 2019. ACETO
disclosed assets of $753,159,000 and liabilities of $702,848,000 as
of Dec. 31, 2018.
The Hon. Vincent F. Papalia is the case judge.
The Debtors tapped Lowenstein Sandler LLP as counsel; Simmons &
Simmons as foreign counsel; PJT Partners LP as an investment banker
and financial advisor; AP Services LLC as restructuring advisor;
and Prime Clerk LLC as claims and noticing agent.
The U.S. Trustee, on Feb. 28, 2019, appointed five members to the
official committee of unsecured creditors. Counsel for the
Committee is Stroock & Stroock & Lavan LLP and Porzio, Bromberg &
Newman, P.C. Houlihan Lokey Capital, Inc., is the Committee's
investment banker. GlassRatner Advisory & Capital Group, LLC, as
its financial advisor.
TROIKA MEDIA: Board OKs Change in Fiscal Year End to Dec. 31
------------------------------------------------------------
The Board of Directors of Troika Media Group, Inc. approved a
change in fiscal year end of the Company from June 30th to December
31st. The Board's decision to change the fiscal year end is to
align with that of its wholly owned subsidiary, Converge Direct,
LLC., and its affiliates, which has a December 31st fiscal year
end.
Following such change, the date of the Company's next fiscal year
end is Dec. 31, 2023. Consequently, the Company will file a
transitional annual report on Form 10-K for the six-month period
starting on July 1, 2022, and ending Dec. 31, 2022, to cover such
transition period.
About Troika
Troika Media Group, Inc. (fka M2 nGage Group, Inc.) --
www.thetmgrp.com -- is a consumer engagement and customer
acquisition consulting and solutions group based in New York and
Los Angeles. Troika's expertise is in Consumer Products and
Services, Entertainment and Media, Sports and Sports Betting,
Financial and Professional, Education and eSports and Gaming
sectors. Its clients include Apple, Hulu, Riot Games, Belvedere
Vodka, Unilever, UFC, Leaf Home, AT&T, Andersen Windows, Peloton,
CNN, HBO, ESPN, Wynn Resorts and Casinos, IMAX, Netflix, Sony,
Yahoo, and Coca-Cola.
Troika Media reported a net loss of $38.69 million for the year
ended June 30, 2022, a net loss of $16 million for the year ended
June 30, 2021, and a net loss of $14.45 million for the year ended
June 30, 2020.
UNITED ROAD: Bank Debt Trades at 36% Discount
---------------------------------------------
Participations in a syndicated loan under which United Road
Services Inc is a borrower were trading in the secondary market
around 64.125 cents-on-the-dollar during the week ended Fri.,
October 28, 2022, according to Bloomberg's Evaluated Pricing
service data.
The USD331.3 million facility is a term loan. The loan is
scheduled to mature in October 2024. As of October 28, 2022,
USD301.4 million of the amount was drawn and outstanding.
United Road Services, Inc., provides vehicle transportation
logistics solutions.
VANTAGE DRILLING: Manuel Garcia Quits as Director
-------------------------------------------------
Vantage Drilling International was informed by Manuel A. Garcia of
his decision to resign from the board of directors of the Company,
effective Oct. 24, 2022.
This decision was not related to a disagreement with the Company on
any matter relating to its operations, policies or practices, the
Company disclosed in a Form 8-K filed with the Securities and
Exchange Commission.
About Vantage Drilling International
Vantage Drilling International, a Cayman Islands exempted company,
is an offshore drilling contractor, with a fleet of two
ultra-deepwater drillships, and five premium jackup drilling rigs.
Its primary business is to contract drilling units, related
equipment and work crews primarily on a dayrate basis to drill oil
and natural gas wells globally for major, national and independent
oil and gas companies. The Company also markets, operates and
provides management services in respect of, drilling units owned by
others.
Vantage Drilling reported a net loss of $110.25 million for the
year ended Dec. 31, 2021, compared to a net loss of $276.76 million
for the year ended Dec. 31, 2020. As of June 30, 2022, the Company
had $754.30 million in total assets, $96.69 million in total
current liabilities, $347.68 million in long-term debt, $9.96
million in other long-term liabilities, and $299.97 million in
total equity.
* * *
As reported by the TCR on May 9, 2022, S&P Global Ratings affirmed
its 'CCC' issuer credit rating on Vantage Drilling International.
S&P said the 'CCC' rating reflects the refinancing risk related to
the company's $350 million senior secured notes due November 2023.
VENUE CHURCH: Sale of LED Wall for $40K to Abba's House Approved
----------------------------------------------------------------
Judge Shelley D. Rucker of the U.S. Bankruptcy Court for the
Eastern District of Tennessee, Southern Division, authorized Venue
Church, Inc.'s sale of LED wall consisting of 36 Chauvet F2X4
panels, all power cabling, base plate runners, and tower supports
to Central Baptist Church of Hixson, doing business as Abba's
House, for $40,000, payable upon receipt of the equipment.
About Venue Church Inc.
Venue Church Inc. is a megachurch in Tennessee. Venue Church Inc.
sought protection under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. E.D. Tenn. Case No. 22-11829) on August 23, 2022. In its
petition, it listed estimated assets less than $5 million and more
than $3 million in mortgage, auto loan, and credit card debt.
The case is overseen by Honorable Bankruptcy Judge Shelley D.
Rucker.
The Debtor is represented by Tom Bible Law as counsel.
WAHOO FITNESS: Bank Debt Trades at 38% Discount
-----------------------------------------------
Participations in a syndicated loan under which Wahoo Fitness LLC
is a borrower were trading in the secondary market around 61.75
cents-on-the-dollar during the week ended Fri., October 28, 2022,
according to Bloomberg's Evaluated Pricing service data.
The USD225 million facility is a term loan. The loan is scheduled
to mature in August 2028. As of October 28, 2022, USD219 million
of the amount was drawn and outstanding.
Wahoo Fitness is a fitness technology company based in Atlanta,
Georgia.
WATLOW ELECTRIC: Eurotherm Transaction No Impact on Moody's B2 CFR
------------------------------------------------------------------
Moody's Investors Service said that Watlow Electric Manufacturing
Company's B2 corporate family rating and stable outlook are
unaffected by the expected increase in term loan debt to fund the
acquisition of Eurotherm, a subsidiary of Schneider Electric SE (A3
stable). The proposed upsize in term loan and acquisition are
expected to close before year end. The combination will expand
scale and remove a key competitor, but result in an initial
increase in leverage.
Headquartered in St. Louis, Missouri, Watlow Electric Manufacturing
Company produces highly engineered thermal technology products for
diverse end-markets including semiconductor manufacturing, medical,
aerospace & defense, energy, heavy vehicle and general industrial.
The company's LTM June 2022 sales were approximately $702 million.
WESTBANK HOLDINGS: Trustee Taps Beau Box as Real Estate Broker
--------------------------------------------------------------
Dwayne Murray, the trustee appointed in the Chapter 11 cases of
Westbank Holdings, LLC and its affiliates, seeks approval from the
U.S. Bankruptcy Court for the Eastern District of Louisiana to
employ Beau Box Commercial Real Estate as his real estate broker.
The firm will render these services:
(a) advertise and market the Debtors' multifamily apartment
complexes in the greater New Orleans area;
(b) set up a data room;
(c) assist in the valuation of the properties;
(d) consult various offers;
(e) interface with other brokers and prospective purchasers;
and
(f) provide expert testimony on behalf of the estates, if
necessary.
Beau Box has agreed to a discounted commission of 3 percent of the
gross sale amount if no buyer broker is involved and 4 percent of
the gross sale amount if a buyer broker is involved.
Beau Box, a real estate broker at Beau Box Commercial Real Estate,
disclosed in a court filing that the firm is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Beau J. Box
Beau Box Commercial Real Estate
5500 Bankers Avenue
Baton Rouge, LA 70808
Telephone: (225) 237-3343
Facsimile: (225) 237-3344
Email: bbox@beaubox.com
About Westbank Holdings
Westbank Holdings, LLC is a New Orleans, La.-based company
primarily engaged in renting and leasing real estate properties.
Westbank Holdings and its affiliates filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. La.
Lead Case No. 22-10082) on Jan. 27, 2022. In its petition, Westbank
Holdings listed as much as $50 million in both assets and
liabilities. Joshua Bruno, manager, signed the petition.
Judge Meredith S. Grabill oversees the cases.
Frederick L. Bunol, Esq., at The Derbes Law Firm, LLC, Alvendia
Kelly & Demarest, LLC and G Rowland CPA & Associates serve as the
Debtors' bankruptcy counsel, special counsel and accountant,
respectively. Richard W. Cryar, a partner at F M Reed Company, is
the Debtors' chief restructuring officer.
Dwayne M. Murray, the Chapter 11 trustee appointed in the Debtors'
cases, tapped Fishman Haygood, LLP as legal counsel and Patrick J.
Gros, CPA, as accountant.
WJA ASSET: Debtor Will Liquidate its Assets to Pay Claims
---------------------------------------------------------
Prosper Managed Fund, LLC, a California limited liability company,
provides its Disclosure Statement Describing Chapter 11 Plan of
Liquidation of Prosper Managed Fund, LLC in connection with the
solicitation of acceptances and rejections of Creditors and
Interest Holders of its Chapter 11 Plan of Liquidation of Prosper
Managed Fund, LLC.
The Debtor is part of a network of entities or "Funds" formed by
William Jordan to offer investment opportunities to individuals.
William Jordan Investments, Inc. ("WJI"), was the registered
investment advisor. WJA Asset Manager, LLC ("WJAAM") is the
managing member of the Debtors, with the exception of itself and
WJI. William Jordan is the sole owner of WJI and is the sole member
of WJAAM.
The Plan is a liquidation plan which contemplates that the Debtor
will liquidate its assets and distribute the proceeds and funds on
hand to its Creditors and Interest Holders in accordance with the
priorities set forth in the Bankruptcy Code. The Effective Date of
the Plan will be the date that is 3 weeks after entry of the
Confirmation Order, provided that there is no stay of the
effectiveness of the Confirmation Order. If such a stay is issued
other than by operation of Federal Rule of Bankruptcy Procedure
3020(e), then the Effective Date shall be the date that is 2 weeks
after the Confirmation Order becomes a Final Order.
Under the Plan, Class 2 General Unsecured Claims totaling $2,907.11
incurred in the operation of the business of Debtor, including
prepetition management fees to WJAAM and outstanding obligations to
any related Fund, regardless of whether a Proof of Claim is filed.
Debtor will make an initial Pro Rata Distribution of the Available
Cash, if any, to the holders of Allowed Class 2 Claims. To the
extent Allowed Class 2 Claims are not Paid in Full by the initial
Pro Rata Distribution and provided that there is Available Cash,
the Debtor will make additional interim and/or final Pro Rata
Distributions of Available Cash. The timing of such additional
Distributions will be in the discretion of the Debtor. If there is
sufficient Available Cash for all Allowed Class 2 Claims to be
fully satisfied, then payments on Allowed Class 2 Claims will
include simple interest at the federal judgment rate in effect on
the Effective Date from the Petition Date through the date that
each Allowed Class 2 Claim is paid in Full.
If a Class 2 Claim is disputed when a Distribution is made, then
pending resolution of the dispute by a Final Order, the Debtor will
reserve sufficient funds to pay the higher Distribution amount.
Once the dispute is resolved by a Final Order, the Debtor will make
a Distribution on account of the Allowed Class 2 Claim in
accordance with the treatment described in the foregoing paragraph.
Class 2 is impaired.
Attorneys for the Debtors-in-Possession:
Philip E. Strok, Esq.
Kyra E. Andrassy, Esq.
Robert S. Marticello, Esq.
Michael L. Simon, Esq.
SMILEY WANG-EKVALL, LLP
3200 Park Center Drive, Suite 250
Costa Mesa, CA 92626
Telephone: 714 445-1000
Facsimile: 714 445-1002
E-mail: pstrok@swelawfirm.com
kandrassy@swelawfirm.com
rmarticello@swelawfirm.com
msimon@swelawfirm.com
A copy of the Disclosure Statement dated October 21, 2022, is
available at https://bit.ly/3gxwLpc from PacerMonitor.com.
About WJA Asset
Management
Luxury Asset Purchasing International, LLC, et al., are part of a
network of entities or "Funds" formed to offer a range of
investment opportunities to individuals. Many of the existing funds
are performing and some Funds had substantial gains. However,
certain Funds, i.e., those invested in private trust deeds secured
by real estate, suffered losses.
William Jordan Investments, Inc. ("Advisor"), is a registered
investment advisor. Laguna Hills, California-based WJA Asset
Management, LLC ("Manager"), is the managing member of Luxury, et
al. William Jordan was the president and sole owner of Advisor and
was the sole member and manager of Manager.
On May 18, 2017, Luxury and its affiliates filed voluntary
petitions under Chapter 11 of the United States Bankruptcy Code. On
May 25, 2017, four other affiliated filed voluntary Chapter 11
petitions. On June 6, 2017, CA Real Estate Opportunity Fund III
filed its Chapter 11 petition. The Debtors' cases are jointly
administered under Bankr. C.D. Cal. Lead Case No. 17-11996, and the
Debtors continue to operate their businesses and manage their
affairs as DIP.
Pursuant to court orders, Howard Grobstein is now serving as the
chief restructuring officer of the Debtors and Mr. Jordan no longer
has any ongoing role in the Debtors' operations.
At the time of the filing, WJA estimated assets of less than
$500,000 and liabilities of $1 million to $10 million.
Judge Scott C. Clarkson presides over the cases.
Lei Lei Wang Ekvall, Esq., Philip E. Strok, Esq., Robert S.
Marticello, Esq., and Michael L. Simon, Esq., at Smiley
Wang-Ekvall, LLP, serve as counsel to the Debtors. Ann Moore of
Norton Moore Adams has been tapped as special counsel. Elite
Properties Realty is the broker.
WW INTERNATIONAL: Bank Debt Trades at 34.6% Discount
----------------------------------------------------
Participations in a syndicated loan under which WW International
Inc is a borrower were trading in the secondary market around
65.375 cents-on-the-dollar during the week ended Fri., October 28,
2022, according to Bloomberg's Evaluated Pricing service data.
The USD945 million facility is a term loan. The loan is scheduled
to mature in April 2028. As of October 28, 2022, USD942.6 million
of the amount was drawn and outstanding.
WW International, Inc., formerly Weight Watchers International,
Inc., is a global company headquartered in the U.S. that offers
weight loss and maintenance, fitness, and mindset services such as
the Weight Watchers comprehensive diet program.
YAK ACCESS: $680M Bank Debt Trades at 41% Discount
--------------------------------------------------
Participations in a syndicated loan under which Yak Access LLC is a
borrower were trading in the secondary market around 59
cents-on-the-dollar during the week ended Fri., October 28, 2022,
according to Bloomberg's Evaluated Pricing service data.
The USD680 million facility is a term loan. The loan is scheduled
to mature in July 2025. As of October 28, 2022, USD561 million of
the amount was drawn and outstanding.
YAK ACCESS -- https://www.yakaccess.com/ -- is the largest supplier
of access mats in North America.
YOURWAY HOSPITALITY: Seeks to Hire Shuker & Dorris as Counsel
-------------------------------------------------------------
Yourway Hospitality, LLC seeks approval from the U.S. Bankruptcy
Court for the Middle District of Florida to employ Shuker & Dorris,
PA as its legal counsel.
The firm will render these services:
(a) advise the Debtor regarding its rights and duties in its
Chapter 11 case;
(b) prepare pleadings; and
(c) take all other necessary action incident to the proper
preservation and administration of the Debtor's estate.
The hourly rates of the firm's counsel and staff are as follows:
R. Scott Shuker $625
M. L. Dorris $450
M. A. Franklin $175
V. Bernal $105
Other Partners $450 - $625
Other Paraprofessionals $105 - $175
The firm received an advance payment of $19,737.50 for
post-petition services from the Debtor.
R. Scott Shuker, Esq., a partner at Shuker & Dorris, disclosed in a
court filing that the firm is a "disinterested person" as that term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
R. Scott Shuker, Esq.
Shuker & Dorris, PA
121 S. Orange Avenue, Suite 1120
Orlando, FL 32801
Telephone: (407) 337-2060
Facsimile: (407) 337-2050
Email: rshuker@shukerdorris.com
About Yourway Hospitality
Yourway Hospitality, LLC is a Florida-based company, which conducts
business under the name SpringHill Suites by Marriott Sanford.
Yourway Hospitality filed a petition for relief under Chapter 11 of
the Bankruptcy Code (Bankr. M.D. Fla. Case No. 22-03729) on Oct.
17, 2022. In the petition filed by its manager, Jay Patel, the
Debtor disclosed assets between $10 million and $50 million and
liabilities between $1 million and $10 million.
Judge Grace E. Robson oversees the case.
R. Scott Shuker, Esq., at Shuker & Dorris, PA serves as the
Debtor's counsel.
[^] Recent Small-Dollar & Individual Chapter 11 Filings
-------------------------------------------------------
In re Yolanda C. Holmes, M.D. P.C.
Bankr. D.C. Case No. 22-00194
Chapter 11 Petition filed October 24, 2022
See
https://www.pacermonitor.com/view/TV6BZCI/Yolanda_C_Holmes_MD_PC__dcbke-22-00194__0001.0.pdf?mcid=tGE4TAMA
represented by: Frank Morris II, Esq.
LAW OFFICE OF FRANK MORRIS II
E-mail: frankmorrislaw@yahoo.com
In re Message in Me Ministries, a Non-Profit Corporation
Bankr. N.D. Miss. Case No. 22-12764
Chapter 11 Petition filed October 25, 2022
See
https://www.pacermonitor.com/view/24QBYOY/Message_in_Me_Ministries_a_Non-Profit__msnbke-22-12764__0001.0.pdf?mcid=tGE4TAMA
represented by: Craig M. Geno, Esq.
LAW OFFICES OF CRAIG M. GENO, PLLC
In re East Windsor Taekwondo Academy LLC
Bankr. D.N.J. Case No. 22-18439
Chapter 11 Petition filed October 25, 2022
See
https://www.pacermonitor.com/view/BILZZGI/East_Windsor_Taekwondo_Academy__njbke-22-18439__0001.0.pdf?mcid=tGE4TAMA
represented by: Marc C. Capone, Esq.
GILLMAN, BRUTON & CAPONE, LLC
E-mail: mcapone@gbclawgroup.com
In re West Windsor Teakwondo Academy LLC
Bankr. D.N.J. Case No. 22-18438
Chapter 11 Petition filed October 25, 2022
See
https://www.pacermonitor.com/view/BOCKCWQ/West_Windsor_Teakwondo_Academy__njbke-22-18438__0001.0.pdf?mcid=tGE4TAMA
represented by: Marc C. Capone, Esq.
GILLMAN, BRUTON & CAPONE, LLC
E-mail: mcapone@gbclawgroup.com
In re Stephen G Lloyd
Bankr. E.D.N.Y. Case No. 22-72923
Chapter 11 Petition filed October 25, 2022
represented by: Ronald Weiss, Esq.
In re 14554 Friar LLC
Bankr. C.D. Cal. Case No. 22-11245
Chapter 11 Petition filed October 26, 2022
See
https://www.pacermonitor.com/view/GVG5PMQ/14554_Friar_LLC__cacbke-22-11245__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Taquito Taquito LLC
Bankr. M.D. Fla. Case No. 22-03850
Chapter 11 Petition filed October 26, 2022
See
https://www.pacermonitor.com/view/IKVXI4Q/Taquito_Taquito_LLC__flmbke-22-03850__0001.0.pdf?mcid=tGE4TAMA
represented by: Jeffrey S. Ainsworth, Esq.
BRANSONLAW, PLLC
E-mail: jeff@bransonlaw.com
In re Paul A. Dumas and Jodi E. Dumas
Bankr. S.D. Fla. Case No. 22-18289
Chapter 11 Petition filed October 26, 2022
represented by: Aaron Wernick, Esq.
WERNICK LAW, PLLC
In re Pentecostal Assemblies, Inc.
Bankr. S.D. Fla. Case No. 22-18288
Chapter 11 Petition filed October 26, 2022
See
https://www.pacermonitor.com/view/KO623II/Pentecostal_Assemblies_Inc__flsbke-22-18288__0001.0.pdf?mcid=tGE4TAMA
represented by: Edward Shahady, Esq.
EDWARD M. SHAHADY, PA
E-mail: ed@shahady-law.com
In re Cartech Services Inc.
Bankr. E.D.N.Y. Case No. 22-72982
Chapter 11 Petition filed October 26, 2022
See
https://www.pacermonitor.com/view/ECBOEYQ/Cartech_Services_Inc__nyebke-22-72982__0001.0.pdf?mcid=tGE4TAMA
represented by: Scott R Schneider, Esq.
LAW OFFICES OF SCOTT R. SCHNEIDER P.C.
E-mail: scottsch@optonline.net
In re JNE Holdings Inc.
Bankr. E.D.N.Y. Case No. 22-42666
Chapter 11 Petition filed October 26, 2022
See
https://www.pacermonitor.com/view/RFI6MTA/JNE_Holdings_Inc__nyebke-22-42666__0001.0.pdf?mcid=tGE4TAMA
represented by: Francis E. Hemmings, Esq.
FRANCIS E. HEMMINGS PLLC
E-mail: fhemmings@gmail.com
In re Almostaranch Holdings, LLC
Bankr. D. Ariz. Case No. 22-07236
Chapter 11 Petition filed October 27, 2022
See
https://www.pacermonitor.com/view/OLLEMPA/ALMOSTARANCH_HOLDINGS_LLC__azbke-22-07236__0001.0.pdf?mcid=tGE4TAMA
represented by: D. Lamar Hawkins, Esq.
GUIDANT LAW, PLC
E-mail: lamar@guidant.law
In re A Wright Agency Limited Liability Company
Bankr. W.D. Pa. Case No. 22-10479
Chapter 11 Petition filed October 27, 2022
See
https://www.pacermonitor.com/view/NGQPQFY/A_Wright_Agency_Limited_Liability__pawbke-22-10479__0001.0.pdf?mcid=tGE4TAMA
represented by: Lawrence W Willis, Esq.
WILLIS & ASSOCIATES
E-mail: lawrencew@urfreshstrt.com
In re Hayes Business Solutions, LLC
Bankr. S.D. Tex. Case No. 22-33190
Chapter 11 Petition filed October 27, 2022
See
https://www.pacermonitor.com/view/PPZJE3Q/Hayes_Business_Solutions_LLC__txsbke-22-33190__0001.0.pdf?mcid=tGE4TAMA
represented by: Robert C Lane, Esq.
THE LANE LAW FIRM
E-mail: notifications@lanelaw.com
In re Freedom Drain Cleaning and Pipe Services LLC
Bankr. D. Del. Case No. 22-11013
Chapter 11 Petition filed October 28, 2022
See
https://www.pacermonitor.com/view/OE5MKCY/Freedom_Drain_Cleaning_and_Pipe__debke-22-11013__0001.0.pdf?mcid=tGE4TAMA
represented by: Frederick B. Rosner, Esq.
THE ROSNER LAW GROUP LLC
E-mail: rosner@teamrosner.com
In re Pedro E. Jimenez
Bankr. S.D. Fla. Case No. 22-18391
Chapter 11 Petition filed October 28, 2022
represented by: Glenn Moses, Esq.
In re Illinois Valley Cellular RSA 2-II, LLC
Bankr. N.D. Ill. Case No. 22-12541
Chapter 11 Petition filed October 28, 2022
See
https://www.pacermonitor.com/view/Q56JOUI/Illinois_Valley_Cellular_RSA_2-II__ilnbke-22-12541__0001.0.pdf?mcid=tGE4TAMA
represented by: Shelly A. DeRousse, Esq.
FREEBORN & PETERS LLP
E-mail: sderousse@freeborn.com
In re Tip Top Auto Care Inc
Bankr. E.D.N.Y. Case No. 22-42711
Chapter 11 Petition filed October 28, 2022
See
https://www.pacermonitor.com/view/TKDLZSI/Tip_Top_Auto_Care_Inc__nyebke-22-42711__0001.0.pdf?mcid=tGE4TAMA
represented by: Lorna Lamotte, Esq.
THE LAW OFFICES OF LORNA J LAMOTTE PLLC
E-mail: lorna.lamotte@yahoo.com
In re Dennis Earl Bettis and Tanosay Lynn Bettis
Bankr. E.D. Okla. Case No. 22-80598
Chapter 11 Petition filed October 28, 2022
In re Rohan Transport Services, LLC
Bankr. N.D. Tex. Case No. 22-32019
Chapter 11 Petition filed October 28, 2022
See
https://www.pacermonitor.com/view/SHFAHUA/Rohan_Transport_Services_LLC__txnbke-22-32019__0001.0.pdf?mcid=tGE4TAMA
represented by: Eric A. Liepins, Esq.
ERIC A. LIEPINS
E-mail: eric@ealpc.com
In re Emmanuel Health Homecare, Inc.
Bankr. S.D. Tex. Case No. 22-33207
Chapter 11 Petition filed October 28, 2022
See
https://www.pacermonitor.com/view/KPE54OA/Emmanuel_Health_Homecare_Inc__txsbke-22-33207__0001.0.pdf?mcid=tGE4TAMA
represented by: Margaret M. McClure, Esq.
LAW OFFICE OF MARGARET M. MCCLURE
E-mail: margaret@mmmcclurelaw.com
In re W L Houston's Business Investments LLC
Bankr. S.D. Tex. Case No. 22-33232
Chapter 11 Petition filed October 30, 2022
See
https://www.pacermonitor.com/view/YWF55NI/W_L_HOUSTONS_BUSINESS_INVESTMENTS__txsbke-22-33232__0001.0.pdf?mcid=tGE4TAMA
represented by: Samuel L. Milledge, Sr., Esq.
THE MILLEDGE LAW FIRM, PLLC
E-mail: milledge@milledgelawfirm.com
In re T & J Trucking Co, Inc.
Bankr. S.D. Ala. Case No. 22-12257
Chapter 11 Petition filed October 31, 2022
See
https://www.pacermonitor.com/view/F4WTPWQ/T__J_Trucking_Co_INC__alsbke-22-12257__0001.0.pdf?mcid=tGE4TAMA
represented by: Frances Hoit Hollinger, Esq.
FRANCES HOIT HOLLINGER, LLC
E-mail: FranHollinger@aol.com
In re Rock Fitness II, LLC
Bankr. S.D. Fla. Case No. 22-18415
Chapter 11 Petition filed October 31, 2022
See
https://www.pacermonitor.com/view/3GLQE6Y/Rock_Fitness_II_LLC__flsbke-22-18415__0001.0.pdf?mcid=tGE4TAMA
represented by: Brian K. McMahon, Esq.
BRIAN K. MCMAHON, PA
E-mail: briankmcmahon@gmail.com
In re Hook, Fish and Chicken Express, LLC
Bankr. S.D. Fla. Case No. 22-18419
Chapter 11 Petition filed October 31, 2022
See
https://www.pacermonitor.com/view/UGYJGRI/Hook_Fish_and_Chicken_Express__flsbke-22-18419__0001.0.pdf?mcid=tGE4TAMA
represented by: Brian K. McMahon, Esq.
BRIAN K. MCMAHON, PA
E-mail: briankmcmahon@gmail.com
In re Infinite Investments & Rental, LLC
Bankr. S.D. Fla. Case No. 22-18421
Chapter 11 Petition filed October 31, 2022
See
https://www.pacermonitor.com/view/UPMO3XQ/Infinite_Investments__Rental__flsbke-22-18421__0001.0.pdf?mcid=tGE4TAMA
represented by: Brian K. McMahon, Esq.
BRIAN K. MCMAHON, PA
E-mail: briankmcmahon@gmail.com
In re Bar I Logging, LLC
Bankr. S.D. Miss. Case No. 22-51261
Chapter 11 Petition filed October 31, 2022
See
https://www.pacermonitor.com/view/4H3KXEQ/Bar_I_Logging_LLC__mssbke-22-51261__0001.0.pdf?mcid=tGE4TAMA
represented by: Douglas M. Engell, Esq.
DOUG ENGELL
E-mail: dengell@dougengell.com
In re Weinberg Holdings, LLC
Bankr. S.D.N.Y. Case No. 22-11444
Chapter 11 Petition filed October 31, 2022
See
https://www.pacermonitor.com/view/WRPWYAY/Weinberg_Holdings_LLC__nysbke-22-11444__0001.0.pdf?mcid=tGE4TAMA
represented by: Avrum J. Rosen, Esq.
LAW OFFICES OF AVRUM J. ROSEN, PLLC
E-mail: arosen@ajrlawny.com
In re Adrian Marius Jacob
Bankr. S.D. Tex. Case No. 22-33265
Chapter 11 Petition filed October 31, 2022
represented by: Susan Tran Adams, Esq.
*********
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 ***