/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/221130.mbx T R O U B L E D C O M P A N Y R E P O R T E R Wednesday, November 30, 2022, Vol. 26, No. 333 Headlines 6 TURTLE KNOLL: Sale of Monroe Property for $1.5M to Levi Approved 8233 ROXBURY: Exit Plan to Pay Unsecured Creditors in Full 942 PENN RR: Disclosure Statement Hearing Set for Dec. 1 ACCESS METALS: Has Deal on Cash Collateral Access ACER THERAPEUTICS: Incurs $5 Million Net Loss in Third Quarter ACRO BIOMEDICAL: Incurs $4 Million Net Loss in Third Quarter AKUMIN INC: Moody's Lowers CFR to Caa2 & Alters Outlook to Stable ALBERTO JULIAN PEREZ: CarMax Buying 2017 Ford F-150 for $28K ALCARAZ CATERING: Amends Prime Alliance Secured Claim Pay Details ALCARAZ CATERING: Has Deal on Cash Collateral Access ALPINE 4 HOLDINGS: Plans to Amend Financial Statements ALPINE 4 HOLDINGS: Receives Noncompliance Notice From Nasdaq BEACON SCIENTIFIC: Unsecureds Will Get 37% of Claims in Plan BITNILE HOLDINGS: Incurs $8 Million Net Loss in Third Quarter BLOCKFI INC: Case Summary & 50 Largest Unsecured Creditors BRAZOS ELECTRIC: Wins Confirmation of Reorganization Plan CAN B CORP: Incurs $6.9 Million Net Loss in Third Quarter CAREVIEW COMMUNICATIONS: Posts $1.5-Mil. Net Loss in Third Quarter CARLISLE LOGISTICS: Court OKs Final Cash Collateral Access CELSIUS NETWORK: Auction of Substantially All Assets on Dec. 15 CITY OF CHESTER: Chapter 9 Case Summary & 19 Unsecured Creditors COMPUTE NORTH: Foundry Buys 2 Cryptomining Facilities for $14M DIFFENDAL-WELLIVER INC: CGM Offers $1MM for Littlestown Property DIV005 LLC: Seeks Cash Collateral Access DRAGOON MOUNTAIN: Unsecureds Will Get 3.48% of Claims in 3 Years EASCO BOILER: $15.25-Mil. Sale of Bronx Property to TBE Approved ECOARK HOLDINGS: Incurs $24.7 Million Net Loss in Second Quarter ENDO INTERNATIONAL: Akin Gump OK'd to Represent Opioid Claimants ENERGY DRILLING: Voluntary Chapter 11 Case Summary ESCALON MEDICAL: Incurs $321K Net Loss in First Quarter EXELA TECHNOLOGIES: Incurs $85.3 Million Net Loss in Third Quarter FREEDOM DRAIN: Court OKs Interim Use of Cash Collateral FS ENERGY: Moody's Puts 'Ba3' CFR Under Review for Downgrade FTX DIGITAL: Chapter 15 Case Summary FTX TRADING: Dec. 2 Deadline Set for Panel Questionnaires FUTURE VALLEY: Case Summary & 20 Largest Unsecured Creditors FXI HOLDINGS: S&P Downgrades ICR to 'CCC+' on Negative Cash Flow GEX MANAGEMENT: Incurs $21K Net Loss in Third Quarter GIGA-TRONICS INC: Incurs $903K Net Loss in Second Quarter GROWLIFE INC: Incurs $826K Net Loss in Third Quarter HARRISBURG DIOCESE: Joint Plan Proposes $18.5M Survivors' Trust HEALTHIER CHOICES: Incurs $2.1 Million Net Loss in Third Quarter HJ DYNAMIC: Unsecureds Will Get 10% of Claims in Subchapter V Plan HOBBY LOBBY: Case Summary & Eight Unsecured Creditors IBIO INC: Posts $18.1 Million Net Loss in First Quarter IRONSTONE PROPERTIES: Reports Q3 Net Operating Loss of $158K JAMES LARRY BAIN: Proposes Auction of Cullman County Property KAYA HOLDINGS: Incurs $7.4 Million Net Loss in Third Quarter KUBERLAXMI LLC: Voluntary Chapter 11 Case Summary LIVEONE INC: Posts $3.4 Million Net Loss in Second Quarter MGA MANAGEMENT: Wins Cash Collateral Access Thru Dec 31 MITEL NETWORKS: S&P Raises ICR to 'CCC+' on New Capital Structure MLN US HOLDCO: Moody's Rates $221MM Superpriority Loans 'B2' NATURALSHRIMP INC: Posts $24.5 Million Net Loss in Second Quarter NORTHWEST SENIOR: Plan Sponsors Set Bid Procedures for All Assets NUTEX HEALTH: Lincoln Park Commits to Buy $100M Worth of Shares NUTEX HEALTH: Reports Third Quarter Net Loss of $422.5 Million PACIFIC GREEN: Incurs $2.2 Million Net Loss in Second Quarter PARRIS DEVELOPMENT: Voluntary Chapter 11 Case Summary PG&E CORP: Wildfire Victims Want Bankruptcy Judge Removed PHUNWARE INC: Appoints Russ Buyse as CEO PIPELINE HEALTHCARE: To Sell Two Chicago Hospitals for $92 Million PRESSURE BIOSCIENCES: Posts $4.5 Million Net Loss in Third Quarter RAGSTER INVESTMENT: Wins Interim Cash Collateral Access REGIONAL HEALTH: Incurs $371K Net Loss in Third Quarter RIOT BLOCKCHAIN: Stockholders Approve Increase in Authorized Shares ROYALE ENERGY: Incurs $426K Net Loss in Third Quarter ROYALE ENERGY: Inks New Joint Development Deal in Permian Basin SENSITIVE HOME: Future Business Operations to Fund Plan SINTX TECHNOLOGIES: Gets Another Noncompliance Notice From Nasdaq SONOMA PHARMACEUTICALS: Posts $1 Million Net Loss in Second Quarter SUREFUNDING LLC: Seeks to Hire Greenspoon Marder as OCP THOMAS M. DLUGOLECKI: Order Issued on Asset Sale & Case Dismissal TITAN IMPORTS: Unsecured Creditors to Get Nothing in Amended Plan TOUCHPOINT GROUP: Posts $2.6 Million Net Loss in Third Quarter TPT GLOBAL: Delays Filing of Third Quarter Form 10-Q TPT GLOBAL: Enters Partnership With Black Pearl TPT GLOBAL: Unit Awarded $2.86 Million U.S. Army Contract TPT GLOBAL: Units Complete $2.9M Kentucky Road Construction Project UNIVERSAL REHEARSAL: Wins Cash Collateral Access Thru Dec 30 VERITAS FARMS: Top Official Resigns VIDEO RIVER: Posts $494K Net Income in Third Quarter VIVAKOR INC: Incurs $1.6 Million Net Loss in Third Quarter YUNHONG CTI: Terminates LJ Soldinger as Auditor ZENTUARY GROUP: Wins Interim Cash Collateral Access [*] Colorado Bankruptcies Down 6.4% in October 2022 ********* 6 TURTLE KNOLL: Sale of Monroe Property for $1.5M to Levi Approved ------------------------------------------------------------------ Judge Cecelia G. Morris of the U.S. Bankruptcy Court for the Southern District of New York authorized 6 Turtle Knoll, LLC's sale of its right, title, and interest in the property located at 6 Turtle Knoll, in Monroe, New York 10950, pursuant to the terms of the Contract of Sale, to Joel Levi and/or his assigns for $1.5 million. The Sale is free and clear of Liens and Claims, with all Liens and Claims to attach to the sale proceeds. At the closing of the sale, the proceeds of the sale will be distributed as follows: (1) the reasonable and necessary costs of closing; (2) all amounts due and owing to the Orange County Commissioner of Finances; (3) all amounts due and owing to any municipality for property taxes that are a lien on the Property; (4) $607,949.30 to the Secured Creditor, as set forth in the Secured Creditor's Payoff Letter annexed as Exhibit 2 to the Secured Creditor's Partial Opposition to the Motion, plus: (i) interest accrued after Nov. 20, 2022; and (ii) any additional advances, expenses, and/or attorneys' fees accrued and/or expended after Oct. 1, 2022 to the date of closing and set forth in an updated Payoff Letter to be submitted by the Secured Creditor at or prior to the closing of sale; and (5) to the escrow account for the Debtor's attorney, which proceeds will be disbursed only upon further order of the Court. Within 10 days after the closing of the sale, the counsel for the Debtor will cause a closing report, detailing the payments made at the closing, to be filed on the docket of the case. About 6 Turtle Knoll 6 Turtle Knoll, LLC filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Case No. 22-35095) on Feb. 22, 2022, with up to $500,000 in assets and Up to $1 million in liabilities. Judge Cecelia G. Morris oversees the case. The Debtor tapped James J. Rufo, Esq., at The Law Office of James J. Rufo as bankruptcy counsel and Richard J. Croughan, Esq., as real estate attorney. 8233 ROXBURY: Exit Plan to Pay Unsecured Creditors in Full ---------------------------------------------------------- 8233 Roxbury, LLC filed with the U.S. Bankruptcy Court for the Central District of California a disclosure statement describing its proposed Chapter 11 plan of reorganization. Under the plan, all allowed claims, including Class 6 general unsecured claims, will be paid in full upon completion of the sale or refinancing of the company's real property. This is after the payment of the projected statutory fees, professional fee claims, capital gains taxes and the cost of sale. Proceeds from the sale or refinancing will be distributed on May 1, 2023, which is the effective date of the plan. While this process is pending, 8233 Roxbury has been approved for high-end Airbnb rentals which will commence in December. This will permit the company to generate income in the short run and pay its expenses. A copy of the disclosure statement dated Nov. 16, 2022, is available at https://bit.ly/3ApQePI from PacerMonitor.com. About 8233 Roxbury Los Angeles-based 8233 Roxbury filed a petition for relief under Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. C.D. Calif. Case No. 22-14444), with between $1 million and $10 million in both assets and liabilities. Gregory Kent Jones has been appointed as Subchapter V trustee. Judge Julia W. Brand oversees the case. Stella Havkin, Esq., at Havkin & Shrago, Attorneys at Law is the Debtor's counsel. 942 PENN RR: Disclosure Statement Hearing Set for Dec. 1 -------------------------------------------------------- Judge Laurel Isicoff of the U.S. Bankruptcy Court for the Southern District of Florida is set to hold a hearing on Dec. 1, at 1:30 p.m. to consider approval of 942 Penn RR, LLC's disclosure statement for its proposed Chapter 11 plan of reorganization. The company's latest plan filed on Sept. 26 proposes to pay Class 7 unsecured claims in full. Creditors holding Class 7 claims are unimpaired and are not entitled to vote on the plan. About 942 Penn RR 942 Penn RR, LLC is the fee simple owner of a real property also known as 942 Pennsylvania, Avenue, Miami Beach, Fla., valued at $1.62 million. 942 Penn RR filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 22-14038) on May 23, 2022. In the petition filed by Raziel Ofer, manager, the Debtor disclosed $1,617,630 in total assets and $27,179,541 in total liabilities. Judge Robert A. Mark oversees the case. The Law Office of Mark S. Roher, PA serves as the Debtor's counsel. ACCESS METALS: Has Deal on Cash Collateral Access ------------------------------------------------- Access Metals Trading, Inc. and Umpqua Bank advised the U.S. Bankruptcy Court for the Northern District of California, Oakland Division, that they have reached an agreement regarding the Debtor's use of cash collateral and now desire to memorialize the terms of this agreement into an agreed order. A hearing on the matter is set for November 30, 2022 at 10:30 a.m. On March 8, 2022, the Debtor obtained a loan from UB for a business line of credit in the maximum principal amount of $250,000. The Debtor drew down the line of credit to fund its business operations. The current amount owing on the Loan is $252.534 million. The Loan is secured by a personal property lien in favor of UB on all of the Debtor's personal property, including but not limited to accounts receivable and all proceeds. The bank's Lien is evidenced by a first position UCC-1 Financing Statement filed with the California Secretary of State on March 11,2022, Document # U2201173432832. The Loan is guaranteed by Scott K. Ehrlich, the Debtor's President, in accordance with a Commercial Guaranty. The Debtor has agreed to provide UB with adequate protection for the continued use of UB's cash collateral under the terms and conditions of the Agreement and as adequate protection of UB's security in the Property. The Debtor and UB agree that the value of the security interest in the Property granted to UB, as of the date of the filing of the Debtor's Petition is $190,000. This figure is a reasonable estimate of the current security and good will of the Debtor. Adequate protection consisting of payments of at least $2,000 per month, commencing in October and continuing through March 15, 2027, at which time the entire remaining principal balance and any interest fees or charges due on the Loan will be paid in full. In addition, UB is given a replacement lien for cash used onto all Property to which UB's lien would have attached had there been no bankruptcy. Solely as adequate protection for any diminution in value, following the Petition Date UB is granted, effective as of the Petition Date, a post-petition replacement lien in an amount no greater than $ 190,000, on all presently owned or hereafter-acquired assets of the Debtors, to the same extent as UB had a valid and perfected security interest in the (i) Pre-Petition Collateral, including all cash collateral, and (ii) all proceeds therefrom. Said Post-Petition Replacement Lien will be secured in accordance with the provisions of Bankruptcy Code sections 361 and 363(e). A copy of the stipulation is available at https://bit.ly/3ViHYta from PacerMonitor.com. About Access Metals Trading Access Metals Trading, Inc., a company in San Ramon, Calif, filed its voluntary petition for Chapter 11 protection (Bankr. N.D. Calif. Case No. 22-40887) on July 31, 2022, with $1,465,176 in assets and $2,364,759 in liabilities. Scott Ehrlich, president of Access Metals Trading, signed the petition. Judge William J. Lafferty oversees the case. The Law Office of Gina R. Klump serves as the Debtor's legal counsel. ACER THERAPEUTICS: Incurs $5 Million Net Loss in Third Quarter -------------------------------------------------------------- Acer Therapeutics Inc. has filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $5.01 million on zero revenue for the three months ended Sept. 30, 2022, compared to a net loss of $3.27 million on zero revenue for the three months ended Sept. 30, 2021. For the nine months ended Sept. 30, 2022, the Company reported a net loss of $16.85 million on zero revenue compared to a net loss of $10.95 million on $900,000 of revenue for the nine months ended Sept. 30, 2021. As of Sept. 30, 2022, the Company had $15.32 million in total assets, $27.53 million in total liabilities, and a total stockholders' deficit of $12.21 million. Acer Therapeutics stated, "We have never been profitable and have incurred operating losses in each year since inception. From inception to September 30, 2022, we have raised net cash proceeds of $111.1 million, primarily from common stock offerings, private placements of convertible preferred stock, debt instruments, and convertible debt instruments. In addition, from inception to September 30, 2022, we have raised cash proceeds of $35.0 million from collaboration agreements. As of September 30, 2022, we had $6.4 million in cash and cash equivalents, and current liabilities aggregating to $20.8 million, which include $10.6 million associated with deferred collaboration funding. Our net loss for the three months ended September 30, 2022 and 2021 was $5.0 million and $3.3 million, respectively. As of September 30, 2022, we had an accumulated deficit of $131.4 million. Substantially all of our operating losses resulted from expenses incurred in connection with our research and development programs and from general and administrative costs associated with our operations. "As of September 30, 2022, we had $6.4 million in cash and cash equivalents and had current liabilities of $20.8 million, which include $10.6 million associated with deferred collaboration funding. We believe that our cash and cash equivalents available at September 30, 2022 will be sufficient to fund our currently anticipated operating and capital requirements into the fourth quarter of 2022. There is substantial doubt about our ability to continue as a going concern." Management Commentary "I am pleased with our team's progress in the third quarter, highlighted by the timely resubmission of our New Drug Application (NDA) following the Complete Response Letter (CRL) issued by the US Food and Drug Administration (FDA) in response to ACER-001's NDA submission," stated Chris Schelling, CEO and founder of Acer. "As the FDA continues its review of our resubmitted NDA for UCDs, we remain focused on advancing ACER-001 for the treatment of Maple Syrup Urine Disease (MSUD), having submitted our (Investigational New Drug) IND application to the FDA for a Phase 2a trial and receiving Orphan Drug Designation (ODD) from the European Commission. "In addition to the advancement of ACER-001, we made significant progress with the continued development of our other pipeline programs, including the initiation of our pivotal, Phase 3 DiSCOVER trial of EDSIVO (celiprolol) for the treatment of COL3A1-positive vascular Ehlers-Danlos Syndrome (vEDS) patients -- the only ongoing clinical trial in this patient population, to our knowledge -- and expansion of our ACER-801 program into treatment and prevention of Post-traumatic Stress Disorder (PTSD) through an investigator-sponsored trial to be conducted by the University of North Carolina (UNC)," Schelling continued. "And early next year, we look forward to reporting topline results from our ongoing Phase 2a clinical trial of ACER-801 for the treatment of moderate to severe Vasomotor Symptoms (VMS) in post-menopausal women." A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1069308/000156459022037680/acer-10q_20220930.htm 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. ACRO BIOMEDICAL: Incurs $4 Million Net Loss in Third Quarter ------------------------------------------------------------ Acro Biomedical Co., Ltd. has filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $4.01 million on zero revenue for the three months ended Sept. 30, 2022, compared to a net loss of $2.99 million on zero revenue for the three months ended Sept. 30, 2021. For the nine months ended Sept. 30, 2022, the Company reported a net loss of $11.94 million on $298,500 of revenues compared to a net loss of $3.84 million on $599,500 of revenues for the nine months ended Sept. 30, 2021. As of Sept. 30, 2022, the Company had $643,648 in total assets, $151,484 in total liabilities, and $492,164 in total stockholders' equity. Acro Biomedical stated, "We had limited gross profit and we incurred a loss from operations and negative cash flow from operations for the nine months ended September 30, 2022. Our operations have been financed largely from loans form minority stockholders. During the past few years we did not generate revenue during a number of quarters, including the second and third quarters of 2022. These factors, among others, raise substantial doubt about our ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. "We propose to fund operations through sales of products and equity financing arrangements. However, because of the lack of sales and the absence of any active trading market for our common stock, our financial condition and our lack of an operating history, including our dependence upon a limited number of customers, we may not be able to raise funds for capital expenditures, working capital and other cash requirements and will have to rely on advances from a minority stockholder, who is also an unpaid consultant, and our officer. If we cannot generate revenue from our products, we may not be able to continue in its business." A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1622996/000164033422002503/acbm_10q.htm About Acro Biomedical Acro Biomedical Co., Ltd. has been engaged in the business of developing and marketing nutritional products that promote wellness and a healthy lifestyle. The Company's business to date has involved the purchase of products from three suppliers in the Republic of China. The Company sells product in bulk to companies who may use its products as ingredients in their products or sell the products they purchase from the Company to their own customers. Acro Biomedical reported net loss of $7.70 million for the year ended Dec. 31, 2021, compared to a net loss of $117,453 for the year ended Dec. 31, 2020. As of Dec. 31, 2021, the Company had $761,077 in total assets, $117,370 in total liabilities, and $643,707 in total stockholders' equity. Hackensack, New Jersey-based Prager Metis CPAs, LLC, the Company's auditor since 2018, issued a "going concern" qualification in its report dated April 15, 2022, citing that the Company had limited cash as of Dec. 31, 2021, had limited gross profit and incurred a loss from its operations for the year ended Dec. 31, 2021 and past few years. These circumstances, among others, raise substantial doubt about the Company's ability to continue as a going concern. AKUMIN INC: Moody's Lowers CFR to Caa2 & Alters Outlook to Stable ----------------------------------------------------------------- Moody's Investors Service downgraded Akumin Inc.'s corporate family rating to Caa2 from B3, probability of default rating to Caa2-PD from B3-PD and senior secured ratings to Caa1 from B2. The speculative grade liquidity rating remains unchanged at SGL-3. The rating outlook is changed to stable from negative. The downgrade reflects Moody's view that Akumin's capital structure is becoming unsustainable given the company's weak operating performance, integration challenges and very high financial leverage. Moody's feels that the company will reduce its leverage from the Alliance Healthcare Services, Inc. acquisition at a slower pace than previously expected. It also incorporates additional execution challenges the company has had with the integration of Alliance Healthcare Services, Inc. Given these challenges, and the significant increase in cash interest expense that will occur in late 2023, there has been a material increase in the risk that Akumin will pursue a transaction that Moody's would consider a distressed exchange, and hence a default. The stable outlook reflects Moody's view that the current ratings accurately reflect the default risk of this borrower. Downgrades: Issuer: Akumin Inc. Corporate Family Rating, Downgraded to Caa2 from B3 Probability of Default Rating, Downgraded to Caa2-PD from B3-PD Senior Secured Bank Credit Facility, Downgraded to Caa1 (LGD3) from B2 (LGD3) Senior Secured 1st Lien Regular Bond/Debenture, Downgraded to Caa1 (LGD3) from B2 (LGD3) Outlook Actions: Issuer: Akumin Inc. Outlook, Changed To Stable From Negative RATINGS RATIONALE Akumin's Caa2 CFR is constrained by: (1) very high financial leverage (around 8.9x as of September 30, 2022 on a Moody's adjusted basis) that is expected to persist over the next 12 to 18 months; (2) execution risks of its acquisition growth strategy; (3) exposure to downward pressure on reimbursement rates; (4) governance risks associated with historical regulatory issues including financial reporting delays. The company benefits from: (1) a nationwide presence and large scale within the fragmented diagnostic imaging and oncology markets; (2) longstanding partnerships with most major US healthcare networks; (3) a well-diversified payor base, including about half of revenues linked to long-term contracts with healthcare providers; and (4) favorable industry trends, including the transition toward lower cost outpatient settings and an aging population. Akumin's capital structure is becoming unsustainable. The company's operating performance has lagged following its leveraged acquisition of Alliance Healthcare Services, Inc. Its financial leverage is currently very high with debt/EBITDA approaching 9 times. A $410 million subordinated note converts from "pay in kind" (PIK) to cash interest starting in September 2023. This will add an incremental $50 million in annual cash interest and cause internally generated cash to turn negative. Although the next material debt maturity is not until November 2025, if the company is unable to materially improve its operating performance or otherwise reduce its debt service requirements, it may choose to pursue a transaction that Moody's would consider a distressed exchange, and hence a default. Akumin has adequate liquidity (SGL-3) with about $135 million of liquidity to cover about $20 million of current long term debt maturities. Liquidity sources consist of cash on hand of about $60 million (as of September 2022), full availability under the company's $55 million committed revolving facility expiring 2025, and Moody's estimate of about $20 million of free cash flow generation over the next 12 months. The revolver is subject to a springing covenant when more than 30% drawn. Moody's does not expect the company to rely on the revolver, but Akumin would have a cushion of around 20% if the covenant is triggered. Alternate sources of liquidity are limited as substantially all assets are encumbered. Beginning in September 2023, Akumin will begin paying cash interest on its $410 million PIK subordinated debt which Moody's expect will lower free cash flow by about $50 million a year. Akumin's senior secured debt (including the $55 million revolving credit facility expiring 2025, and $475 million and $375 million first lien notes due 2025 and 2028, respectively) is rated Caa1, one notch above the Caa2 CFR, reflecting higher recovery in the capital structure ahead of the $410 million PIK subordinated debt due 2032/33 (unrated), funded by Stonepeak Partners LP. Governance risks are high for Akumin, given regulatory challenges and the company's aggressive financial policy. This is characterized by very high financial leverage, the servicing of which reduces deleveraging in a rising interest rate environment. Governance risks also include the possibility that the company's financial strategy might involve distressed exchanges and/or debt restructuring. In addition, Moody's notes management attrition has been elevated in the past several quarters, which can place the execution of strategic plans at risk. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if Akumin materially improves its operating performance, and Moody's views the company's capital structure as sustainable. Akumin would also need to sustain debt to EBITDA below 6.5x while at the same time generating positive free cash flow and maintaining good liquidity. The ratings could be downgraded if Akumin's liquidity deteriorates, or if Moody's believes the probability of default has increased. The principal methodology used in these ratings was Business and Consumer Services published in November 2021. Akumin Inc., a publicly-traded company headquartered in Toronto, Canada and Plantation, Florida, is a provider of diagnostic imaging services in the United States, and generated $744 million in revenue in the 12 months ended September 30, 2022. Stonepeak Partners LP owns 13% of Akumin, on a fully diluted basis. ALBERTO JULIAN PEREZ: CarMax Buying 2017 Ford F-150 for $28K ------------------------------------------------------------ Alberto Julian Perez asks the U.S. Bankruptcy Court for the Southern District of Florida to authorize the private sale of his 2017 Ford F-150 to CarMax Enterprises Services, LLC, for $28,050 or to another third-party purchaser for a price at least 85% of the CarMax Offer amount. The Debtor's schedules disclose, among other things, an ownership interest of the Vehicle with a scheduled valuation of $33,000 and a corresponding loan balance owing to Space Coast Credit Union of $13,848.36 as of Oct. 29, 2022. The scheduled valuation was obtained from Kelly Blue Book. The Auto Loan is fully secured by a lien on the Vehicle. The Debtor pays $788.24 per month for the Vehicle on account of the Auto Loan. He desires to reduce his monthly expenditures, but needs a replacement for the Vehicle, as both the Debtor and his non-debtor spouse require transportation to and from their jobs. The wages earned from those jobs are used to pay for the Debtor's expenses listed on Schedule J. Accordingly, the Debtor investigated potential transactions, and determined to sell the Vehicle and use the equity in the Vehicle to purchase a replacement vehicle. The Debtor has obtained a purchase offer from CarMax in the amount valued and reflected in the schedules of $33,000. He has also obtained a sale offer from CarMax for a replacement 2017 Kia Soul vehicle with an "out the door" amount of $17,861.13, which can be purchased simultaneously with the sale of the Vehicle to CarMax using the proceeds of the CarMax Offer. The "out the door" amount includes $1,873.13 for taxes, fees, and other charges. The CarMax Offer and the Replacement Offer do not require financing. The Debtor desires to move expeditiously to close a trade-in sale transaction to maximize the return to the estate. The CarMax Offer and the Replacement Offer are subject to change. Also, the payments for the Auto Loan are due on the 15th of each month. The Debtor has received offers from other third-party purchasers for the Vehicle of $31,000. These offers are also subject to change. The Debtor believes that it is in the best interest of the estate to sell the Vehicle, reduce the estate's monthly expenditures, and purchase a replacement vehicle. By the Motion, he seeks entry of an order approving (i) the proposed private sale of the Estate's right, title, and interest in the Vehicle for an amount at least 85% of the CarMax Offer amount ($28,050), "as is, where is" and "how-is" with no representations or warranties of any type being given by the Debtor or his professionals, and subject to any and all liens, claims, encumbrances, interests and defenses, whether known or unknown, (ii) the use of the proceeds of such sale to pay the amount owing for the Auto Loan, the costs associated with the transaction, and the cost of a replacement vehicle, with any remaining proceeds to be deposited into the Debtor’s debtor-in-possession bank account. To the best of the Debtor's knowledge, there are no other liens on the Vehicle other than the Space Coast Lien. The Debtor is seeking authority to sell the Vehicle to CarMax or another third-party buyer as the offers for the Vehicle that the Debtor has received have expiration dates of seven days or shorter, which provides limited time to present a particular offer for Court approval and to close a transaction. For the avoidance of doubt, he is planning to sell the Vehicle to CarMax (or to accept a better and higher offer), but seeks authority to sell to another third-party purchaser for a price at least 85% of the CarMax Offer amount because the CarMax Offer is set to expire and the other offers received were less than the amount of the CarMax offer amount. By the Motion, the Debtor is not seeking to incur debt obligations or to pay any broker and/or professional fees. He seeks authority to close on the sale of the estate's right, title, and interest in the Vehicle and to purchase a replacement vehicle using solely the proceeds of such sale (after payment of taxes, fees, and the balance of the Auto Loan) immediately upon Court approval. Finally, because, among other things, the Debtor continues to incur the monthly payments in respect of the Vehicle, he requests that the Court waives the 14 day stay period pursuant to Rule 6004(h). Alberto Julian Perez sought Chapter 11 protection (Bankr. S.D. Fla. Case No. 22-17834) on Oct. 7, 2022. The Debtor tapped Jeffrey Bast, Esq., as counsel. ALCARAZ CATERING: Amends Prime Alliance Secured Claim Pay Details ----------------------------------------------------------------- Alcaraz Catering, Inc., submitted an Amended Plan of Reorganization for Small Business. The Plan Proponent's financial projections show that the Debtor will have projected disposable income of $13,009. Non-priority unsecured creditors holding allowed claims will receive distributions, which the proponent of this Plan has valued at approximately 100 cents on the dollar. This Plan also provides for the payment of administrative and priority claims. Class 2 consists of Secured claim of SBA and Prime Alliance Bank. This Class is impaired. Creditor SBA is modifying their claim and its treatment will change the Plan payment since their arrears will be modified by the amended claim. Debtor intends to pay post-petition payments but there should be zero arrears. Creditor Prime Alliance Bank submitted a claim for $111,389, and terms have been agreed to pay lump sum of $135,000.00 within 90 days of December 1, 2022 (February 28, 2023), and another $200,000.00 within 42 months of December 1, 2022 (June 1, 2026). PRIME's claim submitted to court as Claim #6, shall be satisfied along with another $12,256.63 for post-petition legal costs; $28,144.00 for Forced placed property insurance; $26,861.00 in Post-petition attorney fees and costs, plus a Pre-petition accrued but unpaid default interest of $551,534.07, all satisfied by the two timely lump sum payments. Class 3 consists of Non-priority unsecured creditors. This Class is unimpaired. Unsecured creditors that presented a timely claims will be paid over the Plan period of 60-months in equal installments. All payments shall be initiated at confirmation of the Plan. The Claims register listed seven claims in this matter. Five are unsecured claims and they total $168,057.51, and there are only two secured claims: Prime Alliance Bank and SBA. SBA is modifying their claim to reflect no arrears in this matter. Prime has agreed to two lump-sum payments over the next 42 months so their claim will be reduced to zero. Debtor's objection to claim will be dismissed upon the Court's confirmation of settlement and Plan. Debtor proposes to pay the claimed amounts equally over 60 months. The payment would be $2801.00 per month starting on day of confirmation. Debtor has sufficient revenue to pay the amount of the Plan. The Plan will be funded by the on-going revenues from operation of the business. A business that serves the underserved communities in the county. Over 129 families rely upon Alcaraz Catering operating to make their own living. They have been loyal to Debtor and Debtor has been loyal to them. The rents received from the food trucks provides enough revenue to support the Plan payments. If the catering or government contracts to serve food are secured in the future, addition revenues will be generated to accelerate the repayment of the arrears in this matter. A full-text copy of the Amended Plan of Reorganization dated November 22, 2022, is available at https://bit.ly/3iosmpL from PacerMonitor.com at no charge. Attorney for the Debtor: Kenneth H.J. Henjum, Esq. Kenneth H.J. Henjum Law Office 1190 S Victoria Ave, Ste 106 Ventura, CA 93003 Phone: 805-654-7032 Fax: 805-658-7629 Email: kh@Henjumlaw.com About Alcaraz Catering Alcaraz Catering Inc., a catering company in Oxnard, Calif., filed a petition for relief under Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. C.D. Calif. Case No. 22-10622) on August 13, 2022. In the petition filed by Antonio Alcaraz, as president, the Debtor reported assets and liabilities between $1 million and $10 million each. Susan K Seflin has been appointed as Subchapter V trustee. Kenneth H J Henjum, of the Law Offices of Kenneth H J Henjum, is the Debtor's counsel. ALCARAZ CATERING: Has Deal on Cash Collateral Access ---------------------------------------------------- Alcaraz Catering, Inc. and Prime Alliance Bank advised the U.S. Bankruptcy Court for the Central District of California, Northern Division, that they have reached an agreement regarding the Debtor's use of cash collateral and now desire to memorialize the terms of this agreement into an agreed order. As previously reported by the Troubled Company Reporter, the Debtor obtained a loan from Prime for business purposes. The Loan is evidenced by: 1. The Promissory Note dated February 8, 2012, in the original maximum principal amount of $1,994,500; 2. The Business Loan Agreement dated February 8, 2012; 3. The Deed of Trust, in favor of Prime, dated February 8, 2012, encumbering real property located at 2958 Sturgis Road, Oxnard, California, recorded on February 14, 2012 in the Official Records of Ventura County as Document No. 20120214-00024370-0; 4. The Assignment of Rents, in favor of Prime, dated February 8, 2012, recorded on February 14, 2012 in the Official Records of Ventura County as Document No. 20120214-00024371-0; and 5. Other related Loan Documents. The Debtor acknowledges that, as of the Petition Date, the outstanding indebtedness owed to Prime pursuant to the Loan is $2,218,991, including without limitation outstanding principal of $1,571,985. The parties agree that the Debtor may use cash collateral to pay ordinary and necessary operating expenses in accordance with the budget. The Debtor will timely pay the Smal Business Administration and Prime their respective adequate protection payments. The SBA and Prime will be granted replacement liens in the Debtor's assets for the use of cash collateral to the same extent, validity and priority as their respective pre-petition liens. The replacement liens are deemed duly perfected and recorded under all applicable laws without the needs for any notices or filings. The final hearing on the Cash Collateral Motion will be scheduled for the same date and time as the hearing on plan confirmation. A copy of the stipulation and the Debtor's budget is available at https://bit.ly/3gQGZBs from PacerMonitor.com. The Debtor projects $60,000 in total income and $46,991 in total expenses for a 90-day period. About Alcaraz Catering Alcaraz Catering Inc. is a catering company. Alcaraz Catering filed a petition for relief under Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Case No. 22-10622) on August 13, 2022. In the petition filed by Antonio Alcaraz, as president, the Debtor reported assets and liabilities between $1 million and $10 million each. Susan K Seflin has been appointed as Subchapter V trustee. The Law Offices of Kenneth H.J. Henjum is the Debtor's counsel. ALPINE 4 HOLDINGS: Plans to Amend Financial Statements ------------------------------------------------------ The Board of Directors of Alpine 4 Holdings, Inc., in conjunction with the Audit Committee of the Board, and following consultation with the Company's independent registered public accounting firm, RSM US LL, and the Company's prior auditors, MaloneBailey, LLP, determined that the Company's Dec. 31, 2020 financial statements in the Company's previously filed Annual Report on Form 10-K for the year ended Dec. 31, 2020, the financial statements in the Quarterly Reports on Form 10-Q as of and for the quarters ended March 31, 2021, June 30, 2021 and Sept. 30, 2021, and the Dec. 31, 2021 financial statements in the Annual Report on Form 10-K for the year ended Dec. 31, 2021, as well as the financial statements in the Quarterly Reports for the periods ended March 31, and June 30, 2022 should no longer be relied upon. The Company determined that there were issues in the Company's accounting for business combinations and for income taxes in the 2020, 2021, and 2022 Relevant Periods. The Company intends to amend its 2020 and 2021 Relevant Periods, as well as the interim quarterly financial statements for the 2021 Relevant Periods to be contained in the amended Annual Report on Form 10-K for the year ended Dec. 31, 2021, to reflect restatements of its consolidated financial statements for the 2021 Relevant Periods. Additionally, the Company intends to amend its quarterly financial statements for the 2022 Relevant Periods. The Company's management believes that these misstatements will have no impact on the Company's revenues, or Adjusted EBITDA for the 2020, 2021 or 2022 Relevant Periods. About Alpine 4 Alpine 4 Holdings, Inc (formerly Alpine 4 Technologies, Ltd) is a publicly traded conglomerate that is acquiring businesses that fit into its disruptive DSF business model of drivers, stabilizers, and facilitators. As of April 14, 2021, the Company was a holding company that owned nine operating subsidiaries: ALTIA, LLC; Quality Circuit Assembly, Inc.; Morris Sheet Metal, Corp; JTD Spiral, Inc.; Deluxe Sheet Metal, Inc.; Excel Construction Services, LLC; SPECTRUMebos, Inc.; Impossible Aerospace, Inc.; and Vayu (US), Inc. Alpine 4 reported a net loss of $19.41 million for the year ended Dec. 31, 2021, compared to a net loss of $8.05 million for the year ended Dec. 31, 2020. As of March 31, 2022, the Company had $130.38 million in total assets, $62.35 million in total liabilities, and $68.04 million in total stockholders' equity. ALPINE 4 HOLDINGS: Receives Noncompliance Notice From Nasdaq ------------------------------------------------------------ Alpine 4 Holdings, Inc. said that on Nov. 22, 2022, it received an additional staff determination notice from the Listing Qualifications Department of The Nasdaq Stock Market LLC advising that Nasdaq had not received the Company's Form 10-Q for the quarterly period ended Sept. 30, 2022, and that as such, the Company was not in compliance with Nasdaq Listing Rule 5250(c)(1). Alpine 4 has 60 calendar days from Nov. 21, 2022, to submit to Nasdaq a plan outlining its anticipated steps to regain compliance with the Listing Rule. The Company plans to submit the plan explaining the strategy to make the required SEC filings, and to regain compliance with the Listing Rule. The Company plans to file the Quarterly Report as soon as possible and will provide such information to Nasdaq as part of the proposed plan. About Alpine 4 Alpine 4 Holdings, Inc (formerly Alpine 4 Technologies, Ltd) is a publicly traded conglomerate that is acquiring businesses that fit into its disruptive DSF business model of drivers, stabilizers, and facilitators. As of April 14, 2021, the Company was a holding company that owned nine operating subsidiaries: ALTIA, LLC; Quality Circuit Assembly, Inc.; Morris Sheet Metal, Corp; JTD Spiral, Inc.; Deluxe Sheet Metal, Inc.; Excel Construction Services, LLC; SPECTRUMebos, Inc.; Impossible Aerospace, Inc.; and Vayu (US), Inc. Alpine 4 reported a net loss of $19.41 million for the year ended Dec. 31, 2021, compared to a net loss of $8.05 million for the year ended Dec. 31, 2020. As of March 31, 2022, the Company had $130.38 million in total assets, $62.35 million in total liabilities, and $68.04 million in total stockholders' equity. BEACON SCIENTIFIC: Unsecureds Will Get 37% of Claims in Plan ------------------------------------------------------------ Beacon Scientific, LLC, submitted a Second Restated Subchapter V Plan of Reorganization dated November 22, 2022. During the term of the Plan, the Debtor shall distribute directly (or if the Plan is confirmed on a non-consensual basis, submit the available disposable income necessary for the performance of the Plan to the Trustee and the Trustee shall pay) the projected disposable income. An Allowed Class 3 Claim in favor of Dr. Kiddy in the Amount Not to Exceed (for all purposes) $442,500.00, and therefore distributions to Holders of Class 4 Claims commencing at the rate of 37% of Allowed Claims. If, as the Debtor anticipates, the amount of Dr. Kiddy's Claim is determined to be less than $442,500.00, distributions to Holders of Class 4 Unsecured Claims will be increased proportionately. As set forth in the Plan, it is anticipated that Dr. Kiddy's Class 3 Claim will be determined to be less than $442,500.00, resulting in distributions to Holders of Class 4 Claims at a rate substantially higher than 37%, and up to 100% of Allowed Class 4 Claims. The Summary of Payments assumes distributions over the term of the Plan of 37% to Holders of Class 4 Claims. Class 3 consists of Disputed General Unsecured Claim of Jason S. Kiddy. Jason S. Kiddy, Ph.d filed an Unsecured Claim against the Debtor in the Chapter 11 Case in the amount of $1,450,000.00. Dr. Kiddy's asserted Claim against the Debtor is disputed and is the subject of the Circuit Court Litigation. For purposes of confirmation of this Plan, the Debtor estimates Dr. Kiddy's Class 3 General Unsecured Claim in the maximum amount of $442,500.00, which shall serve as a cap of any award in favor of the Holder of the Class 3 Claim and against the Debtor on and after the Confirmation Date. To the extent judgment (or agreement) in favor of Dr. Kiddy is determined to be less than $442,500.00, Dr. Kiddy's Allowed Class 3 Claim shall be limited to the amount so determined by the Circuit Court (or in such amount agreed to by the parties in writing), with interest at the rate of 2.0%, compounded annually on December 31st of each year during the term of the Plan ("Interest"), beginning on and after the entry of a final non appealable order resolving the Circuit Court Litigation. Distributions to the Holder of this Class 3 Claim shall be paid beginning on January 15, 2023 and June 15, 2023, and on the 15th day of each January and June thereafter during the term of this Plan. Said distributions on account of the Class 3 Claim shall be escrowed in the IOLTA account of Debtor's Counsel, McNamee Hosea, P.A., pending entry of a final non-appealable order resolving Circuit Court Litigation. Upon the entry of such order resolving the Circuit Court Litigation, funds held by Debtor's Counsel shall be distributed to the Holder of the Class 3 Claim in such amount, with any excess funds re-distributed to Holders of Class 4 Claims. Class 3 is Impaired. Class 4 consists of Allowed General Unsecured Claims. The Debtor shall pay Holders of Allowed Class 4 Claims their pro-rata share of all projected disposable income of the Debtor on January 15, 2023 and June 15, 2023, and on the 15th day of each January and June thereafter during the term of this 60 month Plan, with interest at the rate of 2.0%, compounded annually on December 31st of each year during the term hereof. The sum of scheduled and filed Class 4 Unsecured Claims against the Debtor is approximately $262,073.98, which includes Unsecured Claims of Saunders Engineering Consultants, LLC ("SEC") and George M. Saunders, Jr. in the amount of $192,970.33 and $23,350.00, respectively. In the context of this Plan, SEC and Mr. Saunders have voluntarily agreed to subordinate Claims to all Allowed Class 4 Unsecured Claims. Beginning on January 15, 2023 and June 15, 2023, and on the 15th day of each January and June thereafter during the term of this Plan, Holders of Class 4 General Unsecured Claims shall receive distributions in the amount of approximately 37% of Allowed Class 4 Claims. To the extent Dr. Kiddy's Class 3 Claim is determined to be less than $442,500.00, the distribution to Holders of Class 4 Claims shall be increased proportionally, such that Holders of Class 4 Claims shall receive distributions of not less than 37% and as much as 100% of Allowed Class 4 Claims. Class 4 is Impaired. During the term of this Plan, the Debtor shall pay all available disposable income necessary for the performance of the Plan, which disposable income shall be from revenues and collection of receivables, to the extent applicable, the recovery of any avoidance actions. The term of the Plan begins on the Effective Date and ends on the 60th month subsequent thereto. During the first two years of the Plan beginning on the Effective Date, the Debtor shall serve on the Trustee, Creditors and Parties-in-Interest notice that distributions required under the Plan were paid. A full-text copy of the Second Restated Plan dated November 22, 2022, is available at https://bit.ly/3u9iOBC from PacerMonitor.com at no charge. The Debtor's Counsel are: Steven L. Goldberg, Esq. McNamee, Hosea, P.A. 6411 Ivy Lane, Suite 200 Greenbelt, MD 20770 Tel: (301) 441-2420 Fax: (301) 982-9450 Email: sgoldberg@mhlawyers.com About Beacon Scientific Beacon Scientific, LLC -- https://www.beacon-scientific.com -- is an engineering consulting firm serving clients in the insurance and legal industries (among others) and performing failure analysis, accident reconstruction (industrial and motor vehicle) and other engineering consulting services. The company houses a multi-disciplinary team of engineering experts that are experienced in failure analysis, systems evaluation, and ultimately serving as expert witnesses in litigation matters. Beacon Scientific filed a petition for relief under Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. D. Md. Case No. 22 13209) on June 13, 2022, listing up to $50,000 in assets and up to $500,000 in liabilities. Stephen Metz has been appointed as Subchapter V trustee. Steven L. Goldberg, of McNamee Hosea, P.A. is the Debtor's counsel. BITNILE HOLDINGS: Incurs $8 Million Net Loss in Third Quarter ------------------------------------------------------------- Bitnile Holdings, Inc. has filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $8 million on $49.78 million of total revenue for the three months ended Sept. 30, 2022, compared to a net loss of $42.77 million on $30.79 million 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 $62.87 million on $99.97 million of total revenue compared to a net income of $1.44 million on $44.58 million of total revenue for the same period during the prior year. As of Sept. 30, 2022, the Company had $610.90 million in total assets, $155.03 million in total liabilities, $117.11 million in redeemable noncontrolling interests in equity of subsidiaries, and $338.76 million in total stockholders' equity. As of Sept. 30, 2022, the Company had cash and cash equivalents of $10.1 million and working capital of $25.7 million. The Company has financed its operations principally through issuances of convertible debt, promissory notes and equity securities. The Company believes its current cash on hand is sufficient to meet its operating and capital requirements for at least the next twelve months from the date these financial statements are issued. A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/896493/000121465922014056/d111622010q.htm About BitNile Holdings BitNile Holdings, Inc. (formerly known as Ault Global Holdings, Inc.) -- www.BitNile.com -- is a diversified holding company pursuing growth by acquiring undervalued businesses and disruptive technologies with a global impact. Through its wholly and majority-owned subsidiaries and strategic investments, the Company owns and operates a data center at which it mines Bitcoin and provides mission-critical products that support a diverse range of industries, including defense/aerospace, industrial, automotive, telecommunications, medical/biopharma, and textiles. In addition, the Company extends credit to select entrepreneurial businesses through a licensed lending subsidiary. BitNile's headquarters are located at 11411 Southern Highlands Parkway, Suite 240, Las Vegas, NV. BitNile reported a net loss of $23.97 million for the year ended Dec. 31, 2021, a net loss of $32.73 million for the year ended Dec. 31, 2020, a net loss of $32.94 million for the year ended Dec. 31, 2019, and a net loss of $32.98 million for the year ended Dec. 31, 2018. As of June 30, 2022, the Company had $596.27 million in total assets, $133.98 million in total liabilities, $116.89 million in redeemable noncontrolling interests in equity of subsidiaries, and $345.40 million in total stockholders' equity. BLOCKFI INC: Case Summary & 50 Largest Unsecured Creditors ---------------------------------------------------------- Nine affiliates that concurrently filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code: Debtor Case No. ------ -------- BlockFi Inc. (Lead Debtor) 22-19361 201 Montgomery Street, Suite 263 Jersey City, NJ 07302 BlockFi Trading LLC 22-19363 BlockFi Lending LLC 22-19365 BlockFi Wallet LLC 22-19366 BlockFi Ventures LLC 22-19367 BlockFi International Ltd. 22-19368 BlockFi Investment Products LLC 22-19370 BlockFi Services, Inc. 22-19371 BlockFi Lending II LLC 22-19374 Business Description: BlockFi is a ditigal asset lender founded in 2017. Chapter 11 Petition Date: November 28, 2022 Court: United States Bankruptcy Court District of New Jersey Judge: Hon. Michael B. Kaplan Debtors' General Bankruptcy Co-Counsel: Joshua A. Sussberg, P.C. Christine A. Okike, P.C. KIRKLAND & ELLIS LLP KIRKLAND & ELLIS INTERNATIONAL LLP 601 Lexington Avenue New York, New York 10022 Tel: (212) 446-4800 Email: jsussberg@kirkland.com christine.okike@kirkland.com Debtors' General Bankruptcy Co-Counsel: Richard S. Kanowitz, Esq. Kenric D. Kattner, Esq. HAYNES AND BOONE, LLP 30 Rockefeller Plaza, 26th Floor New York, New York 10112 Tel: (212) 659-7300 Email: richard.kanowitz@haynesboone.com kenric.kattner@haynesboone.com Debtors' Local Bankruptcy Counsel: Michael D. Sirota, Esq. Warren A. Usatine, Esq. COLE SCHOTZ P.C. Court Plaza North, 25 Main Street Hackensack, New Jersey 07601 Tel: (201) 489-3000 Fax: (201) 489-1536 Email: msirota@coleschotz.com wusatine@coleschotz.com Debtors' Financial Advisor: BERKELEY RESEARCH GROUP, LLC Debtors' Investment Banker: MOELIS & COMPANY Debtors' Strategic & Communications Advisor: C STREET ADVISORY GROUP, LLC Debtors' Special Bermuda Counsel: WALKERS (BERMUDA) LIMITED Debtors' Notice & Claims Agent: KROLL RESTRUCTURING ADMINISTRATION LLC Estimated Assets (consolidated): $1 billion to $10 billion Estimated Liabilities (consolidated): $1 billion to $10 billion The petitions were signed by Zachary Prince as chief executive officer. A full-text copy of the Lead Debtor's petition is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/EHR2XVY/BlockFi_Inc__njbke-22-19361__0001.0.pdf?mcid=tGE4TAMA Consolidated List of Debtors' 50 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ 1. Ankura Trust Company, LLC, Indenture $729,036,246 as Trustee for the Indenture dated as of February 28, 2022 James J. McGinley 140 Sherman Street, 4th Floor Fairfield, CT 06824 Tel: 203‐319‐6900 Email: james.mcginley@ankura.com 2. West Realm Shires Inc. (FTX US) Loan $275,000,000 John J. Ray III 3500 South Dupont Highway Dover, DE 19901 3. Name and Address on File Client $48,561,400 4. Securities & Exchange Commission Settlement $30,000,000 Hane Kim Brookfield Place 200 Vesey Street, Suite 400 New York, NY 10281‐1022 Tel: 212‐336‐1088 Email: kimha@SEC.GOV 5. Name and Address on File Client $27,930,663 6. Name and Address on File Client $25,531,937 7. Name and Address on File Client $16,450,930 8. Name and Address on File Client $10,092,477 9. Name and Address on File Client $9,130,266 10. Name and Address on File Client $6,500,000 11. Name and Address on File Client $6,416,732 12. Name and Address on File Client $6,264,675 13. Name and Address on File Client $6,042,827 14. Name and Address on File Client $5,713,322 15. Name and Address on File Client $5,500,232 16. Name and Address on File Client $5,482,181 17. Name and Address on File Client $5,000,000 18. Name and Address on File Client $4,670,469 19. Name and Address on File Client $3,995,213 20. Name and Address on File Client $3,290,438 21. Name and Address on File Client $3,290,186 22. Name and Address on File Client $3,092,832 23. Name and Address on File Client $3,084,390 24. Name and Address on File Client $2,733,625 25. Name and Address on File Client $2,618,909 26. Name and Address on File Client $2,600,000 27. Name and Address on File Client $2,527,023 28. Name and Address on File Client $2,385,343 29. Name and Address on File Institutional $2,264,185 Loans 30. Name and Address on File Client $2,195,060 31. Name and Address on File Client $2,028,277 32. Name and Address on File Client $1,799,293 33. Name and Address on File Client $1,769,481 34. Name and Address on File Client $1,693,730 35. Name and Address on File Client $1,680,488 36. Name and Address on File Client $1,647,320 37. Name and Address on File Client $1,646,355 38. Name and Address on File Client $1,630,590 39. Name and Address on File Client $1,535,700 40. Name and Address on File Client $1,471,911 41. Name and Address on File Client $1,454,081 42. Name and Address on File Client $1,398,077 43. Name and Address on File Client $1,354,519 44. Name and Address on File Client $1,253,815 45. Name and Address on File Client $1,201,448 46. Name and Address on File Client $1,100,609 47. Name and Address on File Client $1,046,888 48. Name and Address on File Client $1,042,364 49. Name and Address on File Client $1,000,189 50. Name and Address on File Client $999,650 BRAZOS ELECTRIC: Wins Confirmation of Reorganization Plan --------------------------------------------------------- Allison Good of S&P Global Market Intelligence reports that the U.S. Bankruptcy Court for the Southern District of Texas okayed the reorganization plan of Brazos Electric Power Cooperative Inc. that will repay suppliers of costly electricity during the 2021 winter storm which resulted to historic blackouts across Texas. Brazos Electric filed for Chapter 11 bankruptcy relief in March 2021 after it received "very high invoices." According to the report, the Debtor will pay the Electric Reliability Council of Texas Inc. $1.89 billion out of the $2.1 billion that it billed, which is significantly higher compared to $1.44 billion it originally authorized in September 2021, according to Bankruptcy Judge David Jones' November 14, 2021 order. Part of the settlement with ERCOT will be financed through selling Brazos' gas-fired generation portfolio that totals about 2,200 megawatts capacity, according to the report. "The plan itself and the process leading to its formulation provide independent evidence of the debtor's and such other parties' good faith, serve the public interest, and assure fair treatment of holders of claims," Judge Jones held. Brazos Electric responsibly declared bankruptcy "to protect its cooperative structure, its members, and their ratepayers," Judge Jones continued. Brazos will also pay its subsidiary Brazos Sandy Creek $165 million that will be adjusted once the 25% interest in the 933 megawatts coal-fired Sandy Creek plant sell for more than $150 million, according to the report. Other than its interest ownership in Sandy Creek, Brazos had power purchase agreement for a portion of the plant's output, which it later sought to terminate. The reorganization plan requires Brazos to pay Sandy Creek Energy Associates L.P. $105.4 million in cash and a percentage of the claim's second $130 million "tranche." LS Power Group is the majority owner of the Sandy Creek plant. The report also relates Brazos Electric must pay Tenaska Energy Inc.'s marketing arm, Tenaska Marketing Ventures Inc., amounting to $78.7 million of an allowed $84.1 million claim for unpaid gas supplies delivered during the 2021 winter storm. The contract with Tenaska allowed Brazos Electric to buy gas based on either spot or indexed prices, the cooperative bought $30 million worth of supplies from February 10 to 17, 2021. Brazos Electric also need to create a ratepayer hardship fund to help its customers impacted by bills during the severe cold weather. About Brazos Electric Power Cooperative Brazos Electric Power Cooperative Inc. is a 3,994-megawatt transmission and generation cooperative which members' service territory covers 68 counties from the Texas Panhandle to Houston. It was organized in 1941 and the first cooperative formed in the Lone Star state with the primary intent of generating and supplying electrical power. At present, Brazos Electric is the largest generation and transmission cooperative in the state and is the wholesale power supplier for its 16 member-owner distribution cooperatives and one municipal system. Brazos Electric filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 21-30725) on March 1, 2021. At the time of the filing, the Debtor disclosed assets of between $1 billion and $10 billion and liabilities of the same range. Judge David R. Jones oversees the case. The Debtor tapped Norton Rose Fulbright US, LLP as bankruptcy counsel, Foley & Lardner LLP and Eversheds Sutherland US LLP as special counsel, Collet & Associates LLC as investment banker, and Berkeley Research Group, LLC as financial advisor. Ted B. Lyon & Associates, The Gallagher Law Firm, West & Associates LLP, Butch Boyd Law Firm and Boyd Smith Law Firm, PLLC serve as special litigation counsel. Stretto is the claims and noticing agent. The U.S. Trustee for Region 7 appointed an official committee of unsecured creditors in the Debtor's case on March 15, 2021. The committee is represented by the law firms of Porter Hedges, LLP and Kramer, Levin, Naftalis & Frankel, LLP. FTI Consulting, Inc. and Lazard Freres & Co. LLC serve as the committee's financial advisor and investment banker, respectively. CAN B CORP: Incurs $6.9 Million Net Loss in Third Quarter --------------------------------------------------------- Can B Corp has filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $6.89 million on $2.89 million of total revenues for the three months ended Sept. 30, 2022, compared to a net loss of $3.23 million on $1.91 million of total revenues for the three months ended Sept. 30, 2021. For the nine months ended Sept. 30, 2022, the Company reported a net loss of $12.02 million on $6.02 million of total revenues compared to a net loss of $8.15 million on $2.62 million of total revenues for the nine months ended Sept. 30, 2021. As of Sept. 30, 2022, the Company had $16.72 million in total assets, $12.22 million in total liabilities, and $4.49 million in total stockholders' equity. As of Sept. 30, 2022, the Company had cash and cash equivalents of $34,471 and negative working capital of $2,205,209. For the nine months ended Sept. 30, 2022 and 2021, the Company had incurred losses of $12,024,759 and $8,152,487, respectively. The Company said these factors raise substantial doubt as to the Company's ability to continue as a going concern. A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1509957/000149315222033054/form10-q.htm About Can B Corp Headquartered in Hicksville New York, Canbiola, Inc. (now known as Can B Corp) -- http://www.canbiola.com-- develops, produces, and sells products and delivery devices containing CBD. Cannabidiol ("CBD") is one of nearly 85 naturally occurring compounds (cannabinoids) found in industrial hemp (it is also contained in marijuana). The Company's products contain CBD derived from Hemp and include products such as oils, creams, moisturizers, isolate, and gel caps. In addition to offering white labeled products, Canbiola has developed its own line of proprietary products, as well as seeking synergistic value through acquisitions of products and brands in the Hemp industry. Can B Corp. reported a net loss of $12.17 million for the year ended Dec. 31, 2021, compared to a net loss of $8.88 million for the year ended Dec. 31, 2020. As of March 31, 2022, the Company had $17 million in total assets, $10.75 million in total liabilities, and $6.25 million in total stockholders' equity. Lakewood, Colo.-based BF Borgers CPA PC, the Company's auditor since 2021, issued a "going concern" qualification in its report dated April 15, 2022, citing that the Company's significant operating losses raise substantial doubt about its ability to continue as a going concern. CAREVIEW COMMUNICATIONS: Posts $1.5-Mil. Net Loss in Third Quarter ------------------------------------------------------------------ Careview Communications, Inc. has filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $1.48 million on $1.97 million of revenues for the three months ended Sept. 30, 2022, compared to a net loss of $1.90 million on $2.21 million of revenues for the three months ended Sept. 30, 2021. For the nine months ended Sept. 30, 2022, the Company reported a net loss of $6.33 million on $5.98 million of revenues compared to a net loss of $7.41 million on $6.08 million of revenues for the nine months ended Sept. 30, 2021. As of Sept. 30, 2022, the Company had $4.02 million in total assets, $120.96 million in total liabilities, and a total stockholders' deficit of $116.94 million. CareView stated, "Management continues to monitor the immediate and future cash flows needs of the company in a variety of ways which include forecasted net cash flows from operations, capital expenditure control, new inventory orders, debt modifications, increases sales outreach, streamlining and controlling general and administrative costs, competitive industry pricing, sale of equities, debt conversions, new product or services offerings, and new business partnerships. "The Company's net losses and cash outflows raise substantial doubt about the Company's ability to continue as a going concern." A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1377149/000138713122011615/crvw-10q_093022.htm About CareView Communications CareView Communications, Inc. -- http://www.care-view.com --is a provider of products and on-demand application services for the healthcare industry, specializing in bedside video monitoring, software tools to improve hospital communications and operations, and patient education and entertainment packages. Its proprietary, high-speed data network system is the next generation of patient care monitoring that allows real-time bedside and point-of-care video monitoring designed to improve patient safety and overall hospital costs. The entertainment packages and patient education enhance the patient's quality of stay. CareView is dedicated to working with all types of hospitals, nursing homes, adult living centers and selected outpatient care facilities domestically and internationally. The Company's corporate offices are located at 405 State Highway 121 Bypass, Suite B-240, Lewisville, TX 75067. Careview Communications reported a net loss of $10.08 million for the year ended Dec. 31, 2021, compared to a net loss of $11.68 million for the year ended Dec. 31, 2020. As of Dec. 31, 2021, the Company had $5.08 million in total assets, $117.78 million in total liabilities, and a total stockholders' deficit of $112.70 million. As of June 30, 2022, the Company had $4.39 million in total assets, $121.58 million in total liabilities, and a total stockholders' deficit of $117.19 million. Dallas, Texas-based BDO USA, LLP, the Company's auditor since 2010, issued a "going concern" qualification in its report dated March 31, 2022, citing that the Company has suffered recurring losses from operations and has accumulated losses since inception that raise substantial doubt about its ability to continue as a going concern. CARLISLE LOGISTICS: Court OKs Final Cash Collateral Access ---------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Texas, Dallas Division, authorized Carlisle Logistics, LLC to use cash collateral on a final basis to pay normal, necessary and reasonable postpetition operating expenses pursuant to the budget. As adequate protection, Star Advance, LLC, Pearl Delta Funding, LLC., Meged Funding Group Corp., Mantis Funding, LLC and Silverline Services, Inc. are granted replacement liens under 11 U.S.C. section 552 in any accounts receivable, inventory or other items purchased with cash collateral and in cash on hand and in cash received by the Debtor after such use, to protect against the diminution in value of to the extent the cash collateral of the Secured Creditors is used consistent with their existing priority. A copy of the order is available at https://bit.ly/3VnBB8g from PacerMonitor.com. About Carlisle Logistics, LLC Carlisle Logistics, LLC operates a trucking business. Carlisle Logistics sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 22-31885) on October 10, 2022. In the petition filed by Fred Carlisle, its managing member, the Debtor disclosed up to $50,000 in assets and up to $500,000 in liabilities. Judge Michelle V. Larson oversees the case. Eric A. Liepins, Esq., is the Debtor's legal counsel. CELSIUS NETWORK: Auction of Substantially All Assets on Dec. 15 --------------------------------------------------------------- Judge Martin Glenn of the U.S. Bankruptcy Court for the Southern District of New York authorized the bidding procedures proposed by Celsius Network LLC and affiliates in connection with their sale of substantially all assets. The following dates and deadlines are established for the Debtors' process to solicit bids for the Sale of the Assets comprising their retail platform business ("Retail Platform Assets"), which includes customer earn accounts and coin balances, retail and institutional lending portfolio, swap services, staking platform, CelPay (the Debtors' cryptocurrency payment and transfer feature), and CelsiusX (the Debtors' decentralized finance arm that utilizes wrapped cryptocurrency tokens to bridge centralized finance infrastructure to decentralized finance opportunities), and any cryptocurrencies or digital assets held by the Debtors (to the extent that they comprise property of the estate as such term is defined under section 541 of the Bankruptcy Code). These dates and deadlines are subject to the right of the Debtors, with the consent of the Committee (such consent not to be unreasonably withheld), to modify the following dates, provided that the Debtors will provide notice of such modified dates in accordance with the terms of the Order: a. Final Deadline - Dec. 12, 2022, at 4:00 p.m. (ET) b. Auction (if necessary) - Dec. 15, 2022, at 10:00 a.m. (ET) via remote video or such other means as determined by the Debtors after consultation with the Committee c. Cure Objection Deadline - Dec. 19, 2022, at 4:00 p.m. (ET) d. Sale Objection Deadline - Dec. 19, 2022, at 4:00 p.m. (ET) e. Sale Hearing - Dec. 20, 2022, at 10:00 a.m. (ET) or as soon thereafter as the Court's calendar permits The following dates and deadlines are established for the Debtors' process to solicit bids for the Sale of their Assets ("Remaining Assets"), which will include the Mining Assets and the Retail Platform Assets to the extent that that the Retail Platform Assets are not sold at the Sale Hearing set forth above: a. Final Deadline - Dec. 12, 2022, at 4:00 p.m. (ET) b. Auction - Dec. 15, 2022, at 10:00 a.m. (ET) via remote video or such other means as determined by the Debtors after consultation with the Committee c. Cure Objection Deadline - Dec. 19, 2022, at 4:00 p.m. (ET) d. Sale Objection Deadline - Dec. 19, 2022, at 4:00 p.m. (ET) e. Sale Hearing - Dec. 20, 2022, at 10:00 a.m. (ET) or as soon thereafter as the Court's calendar permits The Debtors will file a notice setting forth the results of an Auction (if any) and identify any Successful Bidder with the Court at least three business days prior to the respective Sale Hearing. If an Auction is cancelled, then the Debtors will file a notice with the Court of such election within two business days of the determination of such election by the Debtors, after consultation with the Committee. The Bidding Procedures are approved, and the Debtors are authorized to solicit bids and conduct an Auction, if necessary, on the terms set forth in the Bidding Procedures. The Debtors are authorized to take all actions as are necessary or appropriate to implement the Bidding Procedures. They may (a) determine which Qualified Bid is the highest or otherwise best offer, (b) at any time prior to entry of an Order of the Court approving a Successful Bid, reject any Bid (other than any Stalking Horse Bid (if any)) that the Debtors determine is (i) inadequate or insufficient, (ii) not in conformity with the requirements of the Bankruptcy Code or the Bidding Procedures, or (iii) contrary to the best interests of the Debtors' estates and their creditors, and (c) prior to conclusion of an Auction (if any), may impose such other terms and conditions upon Qualified Bidders as the Debtors determine to be in the best interests of the Debtors’ estates in these chapter 11 cases. No person or entity, other than any Stalking Horse Bidder (if any), will be entitled to any expense reimbursement, break-up fees, "topping," termination, or other similar fee or payment, and by submitting a bid, such person or entity is deemed to have waived their right to request or to file with this Court any request for expense reimbursement or any fee of any nature in connection with such bid, whether by virtue of section 503(b) of the Bankruptcy Code or otherwise. The Debtors are authorized, but not directed, to select one or more bidders to act as a Stalking Horse Bidder for some or all of the Assets, and enter into a Stalking Horse Agreement with such Stalking Horse Bidder. As soon as practicable after entry of the Order, but no later than three business days, the Debtors will file with the Court and serve the Cure Notice on non-Debtor Contract counterparties, and post the Cure Notice to the case website (https://cases.stretto.com/celsius). The Cure Objection Deadline is Dec. 19, 2022 at 4:00 p.m. (ET). Any objection to the ability of a Successful Bidder to provide adequate assurance of future performance with respect to any Assigned Contract, must be filed with the Court no later than the earlier of (a) the applicable Sale Objection Deadline or Supplemental Assigned Contract Hearing, as applicable, and (b) 4:00 p.m. (ET) on the date that is 14 days following (x) the Assumption and Assignment Service Date, or (y) the date of Service of the Supplemental Cure Notice, as applicable. The Sale Notice is approved. As soon as reasonably practicable after entry of this Order, the Debtors will serve the Bidding Procedures, the Sale Notice, and the Cure Notice upon the Notice Parties. Consistent with the Memorandum Opinion and Order Granting Motion to Approve Bidding Procedures in Connection with the Sale of Substantially All the Debtors' Assets, the Debtors will confer with the Committee and U.S. Trustee to submit a separate proposed order regarding appointment of a consumer privacy ombudsman. Notwithstanding Bankruptcy Rules 6004(h) and 6006(d), the Order will be immediately effective and enforceable upon its entry. A copy of the Bidding Procedures is available at https://tinyurl.com/5n6wjneh from PacerMonitor.com free of charge. About Celsius Network Celsius Network LLC -- http://www.celsius.network/-- is a financial services company that generates revenue through cryptocurrency trading, lending, and borrowing, as well as by engaging in proprietary trading. Celsius helps over a million customers worldwide to find the path towards financial independence through a compounding yield service and instant low-cost loans accessible via a web and mobile app. Celsius has a blockchain-based fee-free platform where membership provides access to curated financial services that are not available through traditional financial institutions. The Celsius Wallet claims to be one of the only online crypto wallets designed to allow members to use coins as collateral to get a loan in dollars, and in the future, to lend their crypto to earn interest on deposited coins (when they're lent out). Crypto lenders such as Celsius boomed during the COVID-19 pandemic, drawing depositors with high interest rates and easy access to loans rarely offered by traditional banks. But the lenders' business model came under scrutiny after a sharp sell-off in the crypto market spurred by the collapse of major tokens terraUSD and luna in May 2022. New Jersey-based Celsius froze withdrawals in June 2022, citing "extreme" market conditions, cutting off access to savings for individual investors and sending tremors through the crypto market. The list of major crypto firms that have filed for bankruptcy protection in 2022 now includes Celsius Network, Three Arrows Capital and Voyager Digital. Celsius Network, LLC and its subsidiaries sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No.22-10964) on July 14, 2022. In the petition filed by CEO Alex Mashinsky, the Debtors estimated assets and liabilities between $1 billion and $10 billion. The Debtors tapped Kirkland & Ellis, LLP and Kirkland & Ellis International, LLP as legal counsels; Centerview Partners, LLC as investment banker; and Alvarez & Marsal North America, LLC as financial advisor. Stretto, the claims agent and administrative advisor, maintains the page https://cases.stretto.com/celsius On July 27, 2022, the U.S. Trustee appointed an official committee of unsecured creditors. The committee tapped White & Case, LLP as its bankruptcy counsel; Elementus Inc. as its blockchain forensics advisor; M3 Advisory Partners, LP as its financial advisor; and Perella Weinberg Partners, LP as its investment banker. Shoba Pillay, Esq., is the examiner appointed in the Debtors' Chapter 11 cases. Jenner & Block, LLP and Huron Consulting Services, LLC serve as the examiner's legal counsel and financial advisor, respectively. CITY OF CHESTER: Chapter 9 Case Summary & 19 Unsecured Creditors ---------------------------------------------------------------- Debtor: City of Chester, Pennsylvania 1 E 4th Street Chester City Municipal Building Chester, PA 19013 Case No.: 22-13032 Type of Debtor: Municipality Chapter 9 Petition Date: November 11, 2022 Court: United States Bankruptcy Court Eastern District of Pennsylvania Judge: Hon. Ashely M. Chan Debtor's Counsel: Tobey M. Daluz, Esq. Margaret A. Vesper, Esq. BALLARD SPAHR LLP 1735 Market Street, 51st Floor Philadelphia, PA 19103 Tel: (215) 864-8148 Fax: (215) 864-8999 Email: daluzt@ballardsphar.com vesperm@ballardspahr.com - and - Matthew G. Summers, Esq. Laurel D. Roglen, Esq. Chantelle D. McClamb, Esq. BALLARD SPAHR LLP 919 N. Market Street, 11th Floor Wilmington, DE 19801 Tel: (302) 252-4465 Fax: (302) 252-4466 Email: summersm@ballardspahr.com roglenl@ballardspahr.com mcclambc@ballardspahr.com Estimated Assets: $10 million to $50 million Estimated Liabilities: $100 million to $500 million The petition was signed by Michael Doweary, receiver for City of Chester. A full-text copy of the petition is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/F7S2HAQ/City_of_Chester_Pennsylvania__paebke-22-13032__0001.0.pdf?mcid=tGE4TAMA List of Debtor's 19 Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ 1. City of Chester Estimated Pension $103,200,000 Aggregate Pension Fund unfunded actuarial 1 Fourth Street accrued liability Chester, PA 19013 under Police Pension Plan PNC Financial Services Group, Inc. as Pension Plan Administrator The Tower at PNC Plaza 300 Fifth Avenue Pittsburgh, PA 15222 2. City of Chester Estimated Pension $16,900,000 Aggregate Pension Fund unfunded actuarial 1 Fourth Street accrued liability Chester, PA 19013 under Paid Firemen's Pension Plan PNC Financial Services Group, Inc. as Pension Plan Administrator The Tower at PNC Plaza 300 Fifth Avenue Pittsburgh, PA 15222 3. PFS VII LLC Default $12,120,000 54 Camp Street Premium Milford, MA 01757 Government c/o Michael Lenza Contract Tel: 508-634-3185 Fax: 888-489-9073 Email: mlenza@aol.com PFS VII LLC c/o Elliott Greenleaf, P.C. Thomas B. Helbig 925 Harvest Drive, Suite 300 Blue Bell, PA 19422 PFS VII LLC c/o Raffaele Puppio Ernie Angelos 19 West Third Street Media, PA 19063 4. U.S. Bank National Trustee 2017A Bonds $9,149,365 Association as paying agent 50 S. 16th Street, Suite 2000 Philadelphia, PA 19102 5. County of Delaware, 2009 Lease $7,549,015 Pennsylvania 201 West Front Street Media, PA 19063 Attn: Executive Director Delaware County, Pennsylvania Attn: William F. Martin, County Solicitor Government Center, 2nd Floor County Government Center 201 West Front Street Media, PA 19063 Email: martinw@co.delaware.pa.us 6. City of Chester Estimated Pension $7,100,000 Aggregate Pension Fund unfunded actuarial 1 Fourth Street accrued liability as Officers and PNC Financial Services Employees Pension Group, Inc. as Pension Plan Plan Administrator The Tower at PNC Plaza 300 Fifth Avenue Pittsburgh, PA 15222 7. U.S. Bank National Trustee 2017B Bonds $6,107,250 Association as paying agent 50 S. 16th Street, Suite 2000 Philadelphia, PA 19102 Attn: Corporate Trust 8. State of Pennsylvania, 2017 Loan $1,200,000 Department of Community & Economic Development Commonwealth Keystone Building 400 North Street Harrisburg, PA 17120 9. Greenberg Traurig LLP Professional $1,000,000 1717 Arch Street, Suite 400 Services Philadelphia, PA 19103 c/o Kevin Greenberg Tel: 215-988-7818 Email: greenbergk@gtlaw.com 10. Delaware Valley Series 2010B Bonds $978,914 Regional Finance Authority c/o Calhoun, Baker Inc. 1811 Bethlehem Pike, Suite C350 Flourtown, PA 19031 Carmen P. Belefonte, Esq. 20 West Third Street P.O. Box 1670 Media, PA 19063 Wilmington Trust Company 1100 North Market St. Rodney Square North Wilmington, DE 19890 11. County of Delaware, 2021 Promissory $774,410 Pennsylvania Note Attn: Executive Director County Government Center 201 West Front Street Media, PA 19063 Delaware County, Pennsylvania Attn: William F. Martin, County Solicitor County of Government Center, 2nd Floor 201 West Front Street Media, PA 19063 Email: martinw@co.delaware.pa.us 12. Internal Revenue Service Federal Payroll $721,000 600 Arch Street Taxes Philadelphia, PA19106-1611 Tel: 267-941-6211 Fax: 888-806-5762 13. Chester Water Authority Hydrant Charges $558,144 P.O. Box 467 Chester, PA 19016 14. Prospect Medical Property Tax $340,000 Holdings, Inc. d/b/a Dispute Crozer Health 100 West Sproul Road Springfield, PA 19064 15. Stephen Sheppleman Judgment vs $306,911 c/o Robert C. Ewing City of Chester 20 South Olive Aggregate Pension Street, Suite 205 Fund P.O. Box 728 Media, PA 19063 Tel: 601-565-1600 16. KS StateBank Vehicle Leases Unknown 1010 Westloop, P.O. Box 69 Manhattan, KS 66502 17. Lodge No. 19 of the Claims Related Undetermined Fraternal Order of to Collective Police Bargaining PO Box 820 Agreement Chester, PA 19013 18. Chester City Fire Claims Related Undetermined Fighters Association, to Bargaining Local 1400 Agreement International Association of Fire Fighters PO Box 357 Chester, PA 19013 19. Teamsters Local 107 Claims Related Undetermined 1 E 15th Street to Collective Chester, PA 19013 Bargaining Agreement COMPUTE NORTH: Foundry Buys 2 Cryptomining Facilities for $14M -------------------------------------------------------------- James Nani of Bloomberg Law reports that cryptocurrency mining service provider Compute North Holdings Inc. has obtained court clearance to sell two of its mining facilities and other assets to lender Foundry Digital Inc. for about $14 million. Foundry, a Digital Currency Group subsidiary, agreed to purchase Compute North's mining facilities in Big Springs, Texas and North Sioux City, South Dakota, comprising 17 megawatts of operating capacity. The report notes Foundry will pay $5 million in cash and $9 million in forgiven debt. The U.S. Bankruptcy Court for the Southern District of Texas approved the purchase agreement November 22, 2022. The report notes that, while cryptocurrency prices skyrocketed during the pandemic (with bitcoin surging by 300% in 2020), the Federal Reserve's decision to curb rising inflation by hiking interest rates has since ushered in some of the crypto market's biggest losses in history. After amassing a record value above $3 trillion in November 2021, the cryptocurrency market posted its worst first half ever -- plummeting more than 70% through July. Terra's luna token, a once top cryptocurrency worth more than $40 billion, lost virtually all its value within a week in May after sister token TerraUSD, a stablecoin meant to hold a price of $1, broke its dollar peg as markets collapsed. Crypto lenders such as Celsius Network 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 include crypto lenders Celsius Network, Three Arrows Capital, Voyager Digital, and crypto mining firm Compute North. FTX Trading, the world's second-largest cryptocurrency firm, and BlockFi Inc. separately filed for Chapter 11 protection in November 2022. About Compute North Holdings Computer North Holdings, Inc. -- https://www.computenorth.com/ -- is a crypto mining data center company. Compute North has four facilities in the U.S. -- two in Texas and one in both South Dakota and Nebraska, according to its website. Compute North Holdings and 18 affiliates sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Texas Lead Case No. 22-90273) on Sept. 22, 2022. In the petitions signed by Harold Coulby, as authorized signatory, the Debtors reported assets and liabilities between $100 million and $500 million. Judge Marvin Isgur oversees the cases. The Debtors tapped Paul Hastings, LLP as bankruptcy counsel; Jefferies, LLC as investment banker; and Portage Point Partners as financial advisor. Epiq Corporate Restructuring, LLC is the claims, noticing and solicitation agent. DIFFENDAL-WELLIVER INC: CGM Offers $1MM for Littlestown Property ---------------------------------------------------------------- Diffendal-Welliver, Inc., asks approval from the U.S. Bankruptcy Court for the Middle District of Pennsylvania to sell to CGM Holdings, LLC, and/or assigns for $1 million the property described as: "All that certain lot or piece of ground with buildings and improvements thereon erected, if any, known as: 305 Basehoar School Road, Littlestown. PA plus an adjoining 99.26 acres tract also located on Baseboar School Road, Littlestown, PA, both located in the Township of Union, County of Adams, in the Commonwealth of Pennsylvania, Zip Code 17340. Identiﬁcation as to 304 Basehoar School Road: Record Book 6056 Page 628 and as to the adjoining 99.26 acres in Record Book l336 at Page I04." The first Respondent is PeoplesBank, a Codorus Valley Company, 105 Leader Heights Road, P.O. Box 2887, York, Pennsylvania 17405. It is represented by Brubaker, Connaughton, Goss & Lucarelli, LLC, Robert W. Pontz, Esquire, 480 New Holland Avenue, Suite 6205, Lancaster, Pennsylvania 17602. PeoplesBank holds two mortgages, one dated December 18, 2015 against the Debtor's real estate, which was recorded on Dec. 23, 2015 in the Office of the Recorder of Deeds for Adams County, Pennsylvania at Record Book 6098, Page 433; and a second mortgage dated Dec. 11, 2017 against Debtor’s real estate, which was recorded on Jan. 17, 2018 in the Office of the Recorder of Deeds for Adams County, Pennsylvania at Record Book 6343, Page 437. The second Respondent is Adams County Tax Claim Bureau, 111-117 Baltimore Street, Room 204, Gettysburg, Pennsylvania 17325. Adams County Tax Claim Bureau is not represented by Counsel in this matter. The Debtor has received an offer from the Buyer to purchase the Property for the sum of $1 million, in accordance with the terms of their Agreement for Sale of Real Estate. The Property comprises approximately 102 acres including the real estate; the improved property consisting of Lot #33, which contains a residence; along with the well situated on Lot 35 and all water rights that are consistent with ownership in fee simple of the well. The Debtor's real estate is subject the following liens and encumbrances: a. Real estate taxes owed to the Adams County Tax Claim Bureau in the approximate amount of $71,000; b. First Mortgage in favor of PeoplesBank in the approximate amount of $508,000; and c. Second Mortgage in favor of PeoplesBank in the approximate amount of $123,000. It is proposed that after payment in full of all administrative expenses, the sale of the Property will be free and clear of all liens and encumbrances, but that the liens and encumbrances will be paid in the order of their legal entitlement. The Debtor believes that there will be sufficient proceeds from the sale of the Property to pay all liens specified. Those administrative expenses to first be paid will include but not be limited to: county transfer taxes, notary charges, filing fees, certifications, etc., which would be necessary to pass good and marketable title of the Property and to comply with the requirements of the contract of sale of the Property and all approved counsel fees and costs owed to CGA Law Firm. The Debtor has been soliciting bids from developers since the inception of the case and the Buyer's offer is the best and highest offer received. A copy of the Agreement is available at https://tinyurl.com/bdcpzzkm from PacerMonitor.com free of charge. The Purchaser: CGM HOLDINGS, LLC 126 Onyx Road, New Oxford, PA 17350 About Diffendal-Welliver Inc. Littlestown, Pa.-based Diffendal-Welliver, Inc. filed a Chapter 11 petition (Bankr. M.D. Pa. Case No. 21-01574) on July 15, 2021, with total assets of up to $10 million and total liabilities of up to $1 million. Suzanne Radcliffe, president, signed the petition. Judge Henry W. Van Eck presides the case. CGA Law Firm serves as the Debtor's legal counsel. DIV005 LLC: Seeks Cash Collateral Access ---------------------------------------- Div005, LLC asks the U.S. Bankruptcy Court for the Northern District of Georgia, Gainesville Division, for authority to use cash collateral in accordance with the budget, with a 15% variance. The Debtor requires the use of cash collateral to pay the operating expenses of the business including insurance, taxes and compensation for its work force. Truist Bank asserts liens on, among other things, all or a portion of the proceeds generated from the Debtor's business operations and certain portions of the Debtor's operating revenues which constitute cash collateral within the meaning of 11 U.S.C. section 363, which Truist Bank asserts was perfected by the UCC-1 Financing Statement number 038-2021-017689, filed on July 14, 2021 in the records of the Coweta County Clerk of Superior Court. The Debtor represents that continued operations will generate the greatest source of funds for creditors, including secured creditors. The Debtor also requests the Court to hold an expedited interim hearing on the matter on or before November 30, 2022 to prevent any harm to the Debtor's ongoing business operations as the Debtor must have the ability to continue operating in the ordinary course of business. A copy of the motion and the Debtor's budget is available at https://bit.ly/3gMPeyI from PacerMonitor.com. The Debtor projects $391,760 in gross profit and $234,000 in total expenses for the period from November 27 to December 24, 2022. About Div005, LLC Div005, LLC is primarily engaged in manufacturing iron and steel pipe and tube, drawing steel wire, and rolling steel shapes, from purchased steel. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 22-21202) on November 23, 2022. In the petition signed by Harold Lerner, manager, the Debtor disclosed up to $50,000 in assets and up to $10 million in liabilities. Judge James R. Sacca oversees the case. Cameron M. McCord, Esq., at Jones & Walden, LLC, represents the Debtor as counsel. DRAGOON MOUNTAIN: Unsecureds Will Get 3.48% of Claims in 3 Years ---------------------------------------------------------------- Dragoon Mountain Ranch Phase I Meadows Property Owners Association filed with the U.S. Bankruptcy Court for the District of Arizona a Plan of Reorganization for Small Business under Subchapter V dated November 22, 2022. Debtor represents the owners of 131 home sites with a minimum of 36 acres each located within a gated community secluded in the lush foothills of the Dragoon Mountains east of St. David, in southeastern Arizona. Currently, there are 104 vacant parcels, 21 completed homes, four under construction, and two plans approved. An enforcement lawsuit against owner Searl Tate filed on September 17, 2021, in the Arizona Superior Court in Cochise County under Case No. SO200CV202100525 (the "Enforcement Action"), regarding unapproved shipping containers on Mr. Tate's property is what ultimately led to the bankruptcy filing due to protracted and unnecessary litigation. The Board was left with few options to stop the continued legal onslaught from Mr. Tate, and believed filing this Subchapter V bankruptcy was its best option. The Debtor is dedicating $5,000.00 to pay unsecured creditors over the life of the Plan, out of the Debtor's net income, so that unsecured creditors will receive a distribution that is better than the $0.00 that unsecured creditors would receive in a Chapter 7 liquidation. According to its Schedules, the Debtor identified $94,430.00 of potential claims. Based upon the proofs of claims that were filed, the Debtor has $0.00 of secured claims. There is presently a potential of $143,591.79 of unsecured claims. The Debtor also has administrative claims owing to the subchapter V trustee and its bankruptcy counsel. However, the Debtor or other parties-in-interest may have objections to any proof of claim that will be brought when necessary. Any distribution to general unsecured creditors would be greater than what they receive in a Chapter 7 proceeding (which would be $0.00). The Debtor is dedicating $5,000.00 to pay unsecured creditors over the life of the Plan, so that all administrative creditors will be paid in full, and unsecured creditors will receive a distribution that is better than unsecured creditors would receive in a Chapter 7 liquidation. The Debtor estimates that the percentage return to unsecured creditors will be 3.48%. The final Plan payment to unsecured creditors is expected to be paid 36 months after confirmation of the Plan. The Debtor's Plan requires the $5,000.00 to be paid out to the creditors with Allowed Unsecured Claims on a pro-rata basis for three years, but the Debtor has an option to borrow these funds from outside resources to fund its Plan early and before the end of three years. Further, the Debtor may pre-pay any Plan obligations at any time. This Plan of Reorganization under chapter 11 of the Bankruptcy Code, Subchapter V, proposes to pay creditors of the Debtor from cash flow from continued business operations. Class 3 consists of Non-priority unsecured. The law firm of Munger, Chadwick & Denker, P.L.C. filed Proof of Claim No. 1 on September 30, 2022, in the amount of $72,568.11. Searl Tate filed Proof of Claim No. 2 on November 2, 2022, in the amount of $71,023.68. The creditors with Allowed Unsecured Claims in Class 3 shall be paid quarterly their pro rata share of funds paid into the Plan Fund after all administrative claims are paid in full, their pro-rata share of a total of $5,000. These payments shall be in full satisfaction of any obligation of the Debtor and any guarantor of the obligations. The Debtor shall retain all assets not distributed to creditors pursuant to the Plan, and such assets shall be revested in the Debtor upon confirmation of the Plan, if the Plan confirmation is consensual, or upon closing of the case, if the Plan confirmation is non-consensual. This Class is impaired. There are no equity interests as Debtor is a non-profit corporation and its officers are volunteers who receive no pay. The Debtor shall establish a separate Plan Fund for the management of all funds for distribution to administrative and unsecured creditors with allowed claims. The Plan Fund will be administered by the Debtor if the plan confirmation is consensual as determined by the Court or by the subchapter V trustee if plan confirmation is non-consensual as determined by the Court. The Debtor and the subchapter V trustee desire to have the Debtor administer the Plan Fund even if the Plan is non-consensual, but shall be at the discretion of the Court. A full-text copy of the Plan of Reorganization dated November 22, 2022, is available at https://bit.ly/3ikbyjs from PacerMonitor.com at no charge. Attorney for the Debtor: Jody A. Corrales, Esq. Deconcini Mcdonald Yetwin & Lacy P.C. 2525 E. Broadway Blvd., Suite 200 Tucson, AZ 85716 Tel: 520-322-5000 Fax: 520-322-5585 Email: jcorrales@dmyl.com About Dragoon Mountain Ranch Phase I Dragoon Mountain Ranch Phase I Meadows Property Owners Association sought protection for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Ariz. Case No. 22-05669) on August 25, 2022, listing $50,000 in assets and $50,001 to $100,000 in liabilities. Jody A. Corrales, Esq., at Deconcini Mcdonald Yetwin & Lacy P.C. serves as the Debtor's counsel. EASCO BOILER: $15.25-Mil. Sale of Bronx Property to TBE Approved ---------------------------------------------------------------- Judge James L. Garrity, Jr., of the U.S. Bankruptcy Court for the Southern District of New York authorized Easco Boiler Corp. and Leggett Real Estate Holdings, LLC, to sell the real property located at 1173-1175 Leggett Avenue, in Bronx, New York, pursuant to that Asset Purchase Agreement dated as of Sept. 2, 2022, between Leggett and TBE RE Acquisitions Co. II LLC for $15.25 million. The Sale is free and clear of all Encumbrances, with all such Encumbrances to attach to the net cash proceeds of the sale transaction (if any). The sale transaction and all of the terms and conditions and transactions contemplated by the Asset Purchase Agreement, dated as of Sept. 2, 2022, between Leggett and the Buyer are authorized and approved. In connection with the separate Chapter 11 plan confirmation order, Leggett's sale, transfer, assignment and conveyance of the Property to the Purchaser is entitled to the protections afforded under section 1146(a) of the Bankruptcy Code, and section 1405(b)(8) of the New York Tax Law. Each and every federal, state, and city and local governmental agency or department or office is hereby directed to accept the Order and any and all documents and instruments necessary and appropriate to consummate the transactions contemplated by the Sale Agreement, all without imposition or payments of any real estate transfer, stamp, sales, use, mortgage recording, or similar taxes. Simultaneous with the closing, Leggett will (a) pay the unpaid real estate taxes that became due before the sale, if any, (b) pay the municipal water department lien; (c) hold in escrow the carve out amount agreed between Leggett and Elizon DB Transfer Agent LLC pursuant to the Plan Support Agreement for payment of allowed outstanding administrative claims for professional fees to the extent approved by the Court pursuant to applications of such professionals for compensation; (d) pay any other amounts required to be paid by Leggett under the Sale Agreement, and (e) pay the remaining amount to the Secured Lender in full release of the Secured Lender's Encumbrance(s) against the Property. About Easco Boiler Founded in 1926, Easco Boiler Corp. is the oldest minority owned and operated steel boiler and tank manufacturer in the country. Easco Boiler and affiliate, Leggett Real Estate Holdings, LLC, filed petitions under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 22-10881) on June 27, 2022. In their petitions, Easco Boiler listed up to $10 million in assets and up to $50 million in liabilities while Leggett Real Estate Holdings listed as much as $50 million in both assets and liabilities. Tyren Eastmond, president, signed the petitions. Judge James L. Garrity, Jr. oversees the cases. The Debtors tapped Riemer & Braunstein, LLP as legal counsel and ASI Advisors, LLC as financial advisor. ECOARK HOLDINGS: Incurs $24.7 Million Net Loss in Second Quarter ---------------------------------------------------------------- Ecoark Holdings, Inc. has filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $24.73 million on $0 of revenues for the three months ended Sept. 30, 2022, compared to a net loss of $5.85 million on $0 of revenues for the three months ended Sept. 30, 2021. For the six months ended Sept. 30, 2022, the Company reported a net loss of $35.46 million on $0 of revenues compared to a net loss of $3.29 million on $0 of revenues for the six months ended Sept. 30, 2021. As of Sept. 30, 2022, the Company had $46.62 million in total assets, $9.32 million in total liabilities, $9.21 million in series A convertible redeemable preferred stock, and $28.08 million in total stockholders' equity. Ecoark stated, "The accompanying financial statements for the period ended September 30, 2022 have been prepared assuming the Company will continue as a going concern, but the ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it establishes a revenue stream and becomes profitable. Management's plans to continue as a going concern include raising additional capital through sales of equity securities and borrowing. However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. If the Company is not able to obtain the necessary additional financing on a timely basis, the Company will be required to delay, reduce or perhaps even cease the operation of its business. The ability of the Company to continue as a going concern is dependent upon its ability to successfully secure other sources of financing and attain profitable operations." A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1437491/000121390022074206/f10q0922_ecoarkhold.htm About Ecoark Holdings Rogers, Arkansas-based Ecoark Holdings, Inc., founded in 2011, is a diversified holding company. Through its wholly-owned subsidiaries, the Company has operations in three areas: (i) oil and gas, including exploration, production and drilling operations and transportation services, (ii) post-harvest shelf-life and freshness food management technology, and (iii) financial services including consulting, fund administration and asset management. Ecoark reported a net loss of $10.55 million for the year ended March 31, 2022, a net loss of $20.89 million for the year ended March 31, 2021, a net loss of $12.14 million for the year ended March 31, 2020, and a net loss of $13.65 million for the year ended March 31, 2019. As of June 30, 2022, the Company had $43.65 million in total assets, $14.89 million in total liabilities, $11.81 million in mezzanine equity, and $16.96 million in total stockholders' equity. ENDO INTERNATIONAL: Akin Gump OK'd to Represent Opioid Claimants ---------------------------------------------------------------- Dave Simpson of Law360 reports that a New York federal bankruptcy judge approved the opioid claimants' bid to retain Akin Gump Strauss Hauer & Feld LLP attorneys in the ongoing Chapter 11 proceedings of Endo International plc. According to the court filings, the objections of the U.S. Trustee's Office have been resolved. As reported by the Troubled Company Reporter, William K. Harrington, the United States Trustee for Region 2, objects to the application of the Official Committee of Opioid Claimants to hire Akin Gump as special counsel because Akin Gump currently represents GoldenTree Asset Management LP, a member of the Ad Hoc First Lien Group, which, upon information and belief, holds over $500 million of the Prepetition First Lien Indebtedness, or approximately 8% of the outstanding Prepetition First Lien Indebtedness. Indeed, Golden Tree is one of the largest holders of Prepetition First Lien Indebtedness in the First Lien Group. Prior to the Petition Date, the First Lien Group negotiated with the Debtors and the Multi-State Endo Executive Committee an RSA. Pursuant to the RSA, the First Lien Group has agreed to, among other things, provide a stalking horse bid to purchase all the Debtor's Assets and to establish an opioid claimants trust to settle the potential opioid claims pending against the Debtors. Given these factual circumstances, Akin Gump does not possess undivided loyalty to the OCC in this case, as Akin Gump represents GoldenTree, an entity with an adverse interest to the opioid claimants, the U.S. Trustee told the Court. About Endo International Endo International plc -- http://www.endo.com/-- is a generics and branded pharmaceutical company. It develops, manufactures, and sells branded and generic products to customers in a wide range of medical fields, including endocrinology, orthopedics, urology, oncology, neurology, and other specialty areas. On August 16, 2022, Endo International and certain of its subsidiaries initiated voluntary prearranged Chapter 11 proceedings (Bankr. S.D.N.Y. Lead Case No. 22-22549). The Company's cases are pending before the Honorable James L. Garrity, Jr. The Company has put up a Web site dedicated to its restructuring: http://www.endotomorrow.com/ The Debtors tapped Skadden, Arps, Slate, Meagher & Flom LLP as legal counsel; PJT Partners LP as investment banker; and Alvarez & Marsal as financial advisor. Kroll is the claims agent. Roger Frankel, the legal representative for future claimants in the Chapter 11 cases, tapped Frankel Wyron LLP and Young Conaway Stargatt & Taylor, LLP as counsel and Ducera Partners LLC as investment banker. ENERGY DRILLING: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: Energy Drilling Services LLC 1012 N. Leroy Street, Ste A Fenton, MI 48430 Case No.: 22-31772 Business Description: The Debtor is a drilling contractor in Fenton, Michigan. Chapter 11 Petition Date: November 29, 2022 Court: United States Bankruptcy Court Eastern District of Michigan Debtor's Counsel: Jeffrey A. Chimovitz, Esq. JEFFREY A. CHIMOVITZ, ATTY 4500 E. Court Street, PO Box 90379 Burton, MI 48509 Tel: 810-771-7161 Email: jeffchimovitz@gmail.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Kaitlyn Adler as managing member. 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/ER4WEOQ/Energy_Drilling_Services_LLC__miebke-22-31772__0002.0.pdf?mcid=tGE4TAMA ESCALON MEDICAL: Incurs $321K Net Loss in First Quarter ------------------------------------------------------- Escalon Medical Corp. has filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $320,724 on $2.60 million of net revenues for the three months ended Sept. 30, 2022, compared to net income of $317,220 on $2.67 million of net revenues for the three months ended Sept. 30, 2021. As of Sept. 30, 2022, the Company had $4.93 million in total assets, $3.77 million in total liabilities, and $1.16 million in total shareholders' equity. The Company's total cash on hand as of Sept. 30, 2022 was approximately $275,000 of cash on hand and restricted cash of approximately $256,000 compared to approximately $594,000 of cash on hand and restricted cash of $256,000 as of June 30, 2022. Approximately $48,000 was available under the Company's line of credit as of Sept. 30, 2022. Escalon Medical stated, "Because the Company's operations have not historically generated sufficient revenues to enable profitability, we will continue to monitor costs and expenses closely and may need to raise additional capital or take other actions in order to fund operations. "The Company expects to continue to fund operations from cash on hand and through capital raising sources if possible and available, which may be dilutive to existing stockholders, through revenues from the licensing of the Company's products, or through strategic alliances. Additionally, we may seek to sell additional equity or debt securities through one or more discrete transactions, or enter into a strategic alliance arrangement, but can provide no assurances that any such financing or strategic alliance arrangement will be available on acceptable terms, or at all. Moreover, the incurrence of indebtedness in connection with a debt financing would result in increased fixed obligations and could contain covenants that would restrict our operations." As of Sept. 30, 2022 the Company had an accumulated deficit of approximately $69.2 million, incurred recurring losses from operations and negative cash flows from operating activities. According to Escalon, these factors raise substantial doubt regarding its ability to continue as a going concern, and its ability to generate cash to meet its cash requirements for the following twelve months as of the date of this form 10-Q. A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/862668/000086266822000026/esmc-20220930.htm About Escalon Headquartered in Wayne, Pennsylvania, Escalon Medical Corp. operates in the healthcare market, specializing in the development, manufacture, marketing and distribution of medical devices for ophthalmic applications. Escalon reported net income of $18,081 for the year ended June 30, 2022, compared to a net loss of $52,023 for the year ended June 30, 2021. As of June 30, 2022, the Company had $5.17 million in total assets, $3.69 million in total liabilities, and $1.48 million in total shareholders' equity. Marlton, New Jersey-based Friedman LLP, the Company's auditor since 2018, issued a "going concern" qualification in its report dated Sept. 28, 2022, citing that the Company's significant accumulated deficit and recurring losses from operations and negative cash flows from operating activities in the current year and prior years raise substantial doubt about the Company's ability to continue as a going concern. EXELA TECHNOLOGIES: Incurs $85.3 Million Net Loss in Third Quarter ------------------------------------------------------------------ Exela Technologies, Inc. has filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $85.28 million on $264.04 million of revenue for the three months ended Sept. 30, 2022, compared to a net loss of $13.21 million on $279.23 million of revenue for the three months ended Sept. 30, 2021. For the nine months ended Sept. 30, 2022, the Company reported a net loss of $221.44 million on $810.21 million of revenue compared to a net loss of $71.78 million on $872.29 million of revenue for the nine months ended Sept. 30, 2021. As of Sept. 30, 2022, the Company had $865.27 million in total assets, $1.51 billion in total liabilities, and a total stockholders' deficit of $647.56 million. Going Concern The Company has undertaken and completed the following plans and actions to improve its available cash balances, liquidity or cash generated from operations, over the 12-month period from the date these financial statements are issued: * completed the Revolver Exchange; * paid off its remaining obligations relating to the settlement of the Appraisal Action; * amended the BRCC Facility to provide up to $51.0 million of additional liquidity through a revolving credit facility which becomes available as the Company pays down the term portion of the facility (which the Company expects to do over the next twelve months); * executed a $150.0 million financing with PNC Bank to replace the existing securitization facility that generated annual interest rate savings of approximately $6.0 million; and * raised proceeds of $310.1 million from the sale of equity and debt during the nine months ended September 30, 2022. "Despite these actions, the Company will need to take further action to raise additional funds in the capital markets. In order to access the capital markets, the Company filed registration statements providing for the sale of common stock, preferred stock, warrants, debt securities and/or units. Based on our experience with the at-the-market programs and our knowledge of the Company and the financial market, we believe that we will be able to raise additional funds from the sale of equity and debt in the future. However, the Company's ability to obtain additional financing in the debt and equity capital markets is subject to several factors, including market and economic conditions, the Company's performance and investor sentiment with respect to the Company and its industry and considering these factors are outside of the Company's control, substantial doubt about the Company's ability to continue as a going concern exists under the standards of ASC 205-40." Management Commentary "Since stepping into my current role over a year ago, we have completed many of the objectives laid out; however, our intrinsic value remains deeply discounted. Our business is positioned for operational leverage with conversion of the pipeline into contract wins, stable renewals, and significant operational improvements. In light of the macro environment, we are focused on converting actions into results," said Par Chadha, executive chairman of Exela. A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1620179/000155837022017856/xela-20220930x10q.htm About Exela Technologies Irving, TX-based Exela Technologies (www.exelatech.com) is a business process automation (BPA) company, leveraging a global footprint and proprietary technology to provide digital transformation solutions enhancing quality, productivity, and end-user experience. With decades of experience operating mission-critical processes, Exela serves a growing roster of more than 4,000 customers throughout 50 countries, including over 60% of the Fortune 100. Utilizing foundational technologies spanning information management, workflow automation, and integrated communications, Exela's software and services include multi-industry, departmental solution suites addressing finance and accounting, human capital management, and legal management, as well as industry-specific solutions for banking, healthcare, insurance, and the public sector. Exela reported a net loss of $142.39 million in 2021, a net loss of $178.53 million in 2020, a net loss of $509.12 million in 2019, and a net loss of $169.81 million in 2018. As of June 30, 2021, the Company had $1.09 billion in total assets, $2.03 billion in total liabilities, and a total stockholders' deficit of $943.27 million. * * * As reported by the TCR on Dec. 23, 2021, S&P Global Ratings raised its issuer credit rating on its issuer credit rating on Exela Technologies Inc. to 'CCC-' from 'SD'. The outlook is negative. "In our view, Exela faces a material liquidity deficit over the next year, and absent a capital infusion, a comprehensive restructuring is likely within the next year," S&P said. FREEDOM DRAIN: Court OKs Interim Use of Cash Collateral ------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware authorized Freedom Drain Cleaning and Pipe Services LLC to use cash collateral on an interim basis in accordance with the budget. The Debtor has an immediate need to use the cash collateral to, among other things, continue operating its business, maintain the confidence of its customers, vendors and employees, and preserve its going concern value. Pre-petition, the Debtor entered into merchant agreements with (i) National Funding, Inc.; (ii) Revenued, LLC; (iii) EBF Holdings, LLC d/b/a Everest Business Funding and (iv) First Electronic Bank aka Fundbox. The Debtor is permitted to use cash collateral in a manner consistent and in accordance with and subject to the Budget, including, without limitation, for: (i) working capital requirements; (ii) general corporate purposes; and (iii) the costs and expenses of administering the Case. As adequate protection, the Merchant Lenders are granted additional and replacement valid, binding, enforceable, non-avoidable, and automatically perfected postpetition security interests in and liens upon the Post-Petition Collateral. The Replacement Liens will be junior only to any other valid, binding, enforceable, non-avoidable, and perfected security interests in or liens on any PrePetition Collateral existing as of the Petition Date or existing immediately prior to the Petition Date that are perfected after the Petition Date solely to the extent permitted by section 546(b) of the Bankruptcy Code. As further adequate protection, the Merchant Lenders are granted an allowed administrative expense claim ahead of and senior to any and all other administrative claims in the Case to the extent of any post-petition Lien Diminution in Value. A copy of the order is available at https://bit.ly/3GUMZ76 from PacerMonitor.com. About Freedom Drain Cleaning and Pipe Services LLC Freedom Drain Cleaning and Pipe Services LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 22-11013) on October 28, 2022. In the petition signed by Israel J. Martinez, Jr., managing member, the Debtor disclosed up to $500,000 in both assets and liabilities. Judge Brendan L. Shannon oversees the case. Frederick B. Rosner, Esq., at The Rosner Law Group, LLC, represents the Debtor as counsel. FS ENERGY: Moody's Puts 'Ba3' CFR Under Review for Downgrade ------------------------------------------------------------ Moody's Investors Service has placed FS Energy and Power Fund's (FSEP) ratings, including its Ba3 Corporate Family Rating and its Ba3 senior secured bond rating, under review for downgrade. The action comes as the company approaches near-term maturities for its senior secured credit facility due in February 2023 and its senior secured bond due in August 2023. Governance risks were a consideration in the action. Moody's views the company's liquidity management as an important component of the fund's financial strategy and risk management which is incorporated in Moody's governance Issuer Profile Score (G-3). On Review for Downgrade: Issuer: FS Energy and Power Fund Corporate Family Rating, Placed on Review for Downgrade, currently Ba3 Senior Secured Regular Bond/Debenture, Placed on Review for Downgrade, currently Ba3 Outlook Actions: Issuer: FS Energy and Power Fund Outlook, Changed To Rating Under Review From Stable RATINGS RATIONALE / FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Moody's placed FSEP's ratings under review for downgrade to reflect the risk to creditors of the company's significant upcoming debt maturities, which could weaken the company's liquidity position. Specifically, FSEP has yet to address its senior secured credit facility due in February ($306 million outstanding as of September 30, 2022). If the company is unable to refinance or replace this facility, its ability to address its senior secured bond maturity due in August ($457 million outstanding) becomes less certain. As of September 30, FSEP reported $246 million in cash, up from $131 million at the end of the previous quarter. The increase in cash was driven by sales and repayments of investments that were largely not redeployed into new investments. Moody's expects the company to continue to build cash as it moves closer to near-term maturities. Although the majority of the company's investments are illiquid, FSEP still had $555 million of level 2 securities at the end of the third quarter, which could be sold relatively quickly in orderly markets. Given FSEP's cash on hand and level 2 securities, Moody's believes the company can repay its secured credit facility in the event it cannot be refinanced. However, in the event that the secured credit facility is paid down and not at least partially replaced, FSEP will become much more dependent on sales of its level 2 securities to address the upcoming senior secured bond maturity, making FSEP more vulnerable to a deterioration in valuations and market liquidity at a time when the economic environment remains highly uncertain with downside risks. As of September 30, cash and level 2 securities covered the company's outstanding debt by 1.1x. Turnover of illiquid investments also remains a possibility, although prepayments have generally slowed significantly across the industry. During the review, Moody's will assess FSEP's ability to refinance or replace its senior secured credit facility as well as its ability to build a stronger cash balance in order to address its upcoming debt maturities. The Ba3 ratings are supported by FSEP's strong capitalization, with a much stronger asset coverage ratio than is typically observed at other BDCs. At the same time, the ratings are constrained by FSEP's relatively weak liquidity and funding profile, with large debt maturity concentrations and a sole reliance on secured debt. FSEP's ratings also reflect its weak profitability and operating performance over time, driven in part because of its concentration in energy investments, which have proven volatile. FSEP's governance was a consideration in this rating action. However, FSEP's governance Issuer Profile Score (G-3) and overall Credit Impact Score (CIS-4) are unchanged. The G-3 score reflects FSEP's inconsistent and worse-than-peer financial performance since inception, mainly driven by its concentrated exposure to the volatile energy sector and greater level of junior securities than peers. Moody's view is also driven by the company's highly secured and concentrated capital structure which is now presenting some liquidity management challenges. Additional governance considerations include the external manager's significant influence over the BDC's strategy and risk appetite and its high dividend payout that is required as a registered investment company. FSEP's ratings could be downgraded if the company is unable to refinance its credit facility and/or it does not improve its cash buffer to address its August 2023 bond maturity, which would help to mitigate the risk of having to sell assets to repay the secured bond. An upgrade of FSEP's ratings is unlikely given the review for downgrade. However, FSEP's ratings could be confirmed at their current levels if the company is able to refinance or replace its existing credit facility or otherwise builds its cash balance further, making it less dependent on asset prepayments or sales to address its upcoming bond maturity. The principal methodology used in these ratings was Finance Companies Methodology published in November 2019. FTX DIGITAL: Chapter 15 Case Summary ------------------------------------ Chapter 15 Debtor: FTX Digital Markets Ltd. Bldg. 27, Veridian Corp. Centre W Bay St Nassau, The Bahamas Case No.: 22-11516 Type of Business: FTX Digital Markets LTD. is a company incorporated in the Commonwealth of The Bahamas and operates as a digital assets business under the Digital Assets and Registered Exchanges Act, 2020. Chapter 15 Petition Date: November 15, 2022 Court: United States Bankruptcy Court Southern District of New York Judge: Hon. Michael E. Wiles Foreign Proceeding: In the Matter of FTX Digital Markets LTD. Foreign Representatives: Brian C. Simms, Kevin G Cambridge, and Peter Greaves 3 Bayside Executive Park Nassau, The Bahamas Foreign Representatives' Counsel: Warren E. Gluck, Esq. Marie E. Larsen, Esq. David W. Wirt, Esq. Jessica Magee, Esq. Shardul Desai, Esq. HOLLAND & KNIGHT LLP 31 W. 52nd Street New York, NY 10019 Tel: 212-513-3200 Fax: 212-385-9010 Email: Warren.Gluck@hklaw.com Marie.Larsen@hklaw.com David.Wirt@hklaw.com Jessica.Magee@hklaw.com Sardul.Desai@hklaw.com Estimated Assets: Unknown Estimated Debt: Unknown A full-text copy of the Chapter 15 petition is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/D7QZNLY/FTX_DIGITAL_MARKETS_LTD_and_Brian__nysbke-22-11516__0001.0.pdf?mcid=tGE4TAMA Case Goes to Delaware On Nov. 29, the clerk of court for the U.S. Bankruptcy Court for the Southern District of New York entered a Notice of Inter-District Transfer, transferring the venue of the Chapter 15 proceedings to the U.S. Bankruptcy Court District of Delaware, under Case Number 22-11217. On Nov. 22, at the behest of FTX Trading Ltd.'s new CEO John J. Ray III, the Honorable John T. Dorsey, who supervises FTX Trading's Chapter 11 cases, signed on an agreed order transferring the venue of FTX Digital's Chapter 15 case to Delaware. FTX Trading's liquidators consented to the venue transfer. Ray said it was distressing that FTX Digital's Liquidators appointed by the Bahamas Court chose to file the Chapter 15 Case in New York rather than Delaware, where the Chapter 11 Cases are pending, pointing out that the JPLs and the Bahamas Securities Commission "were well aware" of the pendency and location of the Chapter 11 Cases when they filed the Chapter 15 Case. Ray further pointed out that "enormous efforts are underway to bring some semblance of order to a chaotic environment. It is critical to the efforts to end the chaos and to ensure that assets can be secured and marshalled in an or-derly process that all proceedings related to the Debtors and their affiliates -- including the Chapter 15 Case -- take place in a single venue." The venue is Delaware Bankruptcy Court, he insisted. Ray called the filing of the Chapter 15 Case without advance notice and in New York "a blatant attempt to avoid the supervision of [the Delaware Bankruptcy] Court and to keep FTX DM isolated from the administration of the rest of the Debtors, which constitute the vast majority of the remainder of the FTX group. Under normal circumstances, that would be inappropriate and grounds for transfer to this Court. But these are not normal circumstances." Ray also revealed they have "credible evidence that the Bahamian government is responsible for directing unauthorized access to the Debtors' systems for the purpose of obtaining digital assets of the Debtors -- that took place after the commencement of these cases." He continued, "The appointment of the JPLs and recognition of the Chapter 15 Case are thus in serious question. It appears that the automatic stay has been flaunted, by a government actor no less. This is no time to be arguing over venue." Ray is advised by a team of lawyers at Sullivan & Cromwell LLP led by Andrew G. Dietderich, James L. Bromley, Brian D. Glueckstein and Alexa J. Kranzley; and Landis Rath & Cobb LLP led by Adam G. Landis, Kimberly A. Brown and Matthew R. Pierce. FTX Digital's Chapter 15 Petition was filed by FTX Digital's liquidators, Messrs. Brian Simms, Kevin Cambridge and Peter Greaves, to seek recognition of the proceedings in the Bahamas. Lawyers at Holland & Knight LLP, led by Warren E. Gluck and Marie E. Larsen, argued on behalf of the Liquidators that the Bahamian proceedings is consistent with, and clearly not manifestly contrary to, the public policy of the United States. "The discovery and other relief requested under Section 1521(a) of the Bankruptcy Code is crucial to accurately identify and protect FTX Digital's asset position in the United States, and thus to the efficient administration of its estate." FTX Digital's counsel says venue is proper in the Southern District of New York pursuant to 28 U.S.C. §§ 109(a) and 1410(1) because FTX Digital's principal (and indeed only) assets in the United States are in New York. The assets consist of FTX Digital's interest in $15,000 deposited with Holland & Knight as retainer. The fund is held by the firm in a non-interest bearing client trust account located in New York. FTX TRADING: Dec. 2 Deadline Set for Panel Questionnaires --------------------------------------------------------- The United States Trustee is soliciting members for committee of unsecured creditors in the bankruptcy case of FTX Trading Ltd. If a party wishes to be considered for membership on any official committee that is appointed, it must complete a questionnaire available at https://bit.ly/3OQPOrB and return by email it to Juliet M Sarkessian -- Juliet.M.Sarkessian@usdoj.gov -- at the Office of the United States Trustee so that it is received no later than 4:00 p.m., on Dec. 2, 2022. If the U.S. Trustee receives sufficient creditor interest in the solicitation, it may schedule a meeting or telephone conference for the purpose of forming a committee. About FTX Group FTX is the world's second-largest cryptocurrency firm. FTX is a cryptocurrency exchange built by traders, for traders. FTX offers innovative products including industry-first derivatives, options, volatility products and leveraged tokens. Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that FTX paused customer withdrawals after it was hit with roughly $5 billion worth of withdrawal requests. Faced with liquidity issues, FTX on Nov. 9 struck a deal to sell itself to its giant rival Binance, but Binance walked away from the deal the next day amid reports on FTX regarding mishandled customer funds and alleged US agency investigations. At approximately 4:30 a.m. on Nov. 11, Bankman-Fried ultimately agreed to step aside, and restructuring vet John J. Ray III was quickly named new CEO. FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc. (d/b/a FTX US), Alameda Research Ltd. and certain affiliated companies then commenced Chapter 11 proceedings (Bankr. D. Del. Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022. Additional entities sought Chapter 11 protection on Nov. 14, 2022. A total of 102 entities related to FTX have filed for Chapter 11 protection. FTX Trading and its affiliates each listed $10 billion to $50 million in assets and liabilities, making FTX the biggest bankruptcy filer in the US this year. According to Reuters, CEO Bankman-Fried shared a document with investors on Nov. 10 showing FTX had $13.86 billion in liabilities and $14.6 billion in assets. However, only $900 million of those assets were liquid, leading to the cash crunch that ended with the company filing for bankruptcy. Financial Times says the largest portion of those liquid assets listed on a FTX international balance sheet dated Nov. 10 was $470 million of Robinhood shares owned by a vehicle not listed in the bankruptcy filing. The Hon. John T. Dorsey is the case judge. Andrew G. Dietderich, James L. Bromley, Brian D. Glueckstein and Alexa J. Kranzley at Sullivan & Cromwell LLP in New York, serve as the Debtors' counsel. Adam G. Landis, Kimberly A. Brown and Matthew R. Pierce at LANDIS RATH & COBB LLP in Wilmington serve as local bankruptcy counsel to FTX Group. Alvarez & Marsal North America, LLC, is the Debtors' financial advisor. Kroll is the claims agent, maintaining the page https://cases.ra.kroll.com/FTX/Home-Index Lawyers at Paul Weiss represent Mr. Bankman-Fried. FUTURE VALLEY: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Future Valley Construction, Inc. 6200 Lake Mining Rd. Unit A-7 Bakersfield, CA 93306 Case No.: 22-12016 Chapter 11 Petition Date: November 28, 2022 Court: United States Bankruptcy Court Eastern District of California Judge: Hon. Jennifer E. Niemann Debtor's Counsel: D. Max Gardner, Esq. D. MAX GARDNER, ATTORNEY AT LAW 930 Truxtun Avenue Suite #203 Bakersfield, CA 93301 Tel: 661-888-4335 Fax: 661-591-4186 Email: dmgardner@dmaxlaw.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Chuck R. Thomason as president. A full-text copy of the petition containing, among other items, a list of the Debtor's 20 largest unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/5L6VBKI/Future_Valley_Construction_Inc__caebke-22-12016__0001.0.pdf?mcid=tGE4TAMA FXI HOLDINGS: S&P Downgrades ICR to 'CCC+' on Negative Cash Flow ---------------------------------------------------------------- S&P Global Ratings lowered its issuer credit rating on FXI Holdings Inc. to 'CCC+' from 'B-' and its issue-level rating on its first-lien debt, including its senior secured notes maturing in 2024 and 2026, to 'CCC+' from 'B-'. Its '4' recovery rating on the first-lien debt is unchanged. S&P said, "The negative outlook reflects our expectation that the company's credit metrics and liquidity will remain pressured over the next 12 months. Our outlook also incorporates its sizeable debt maturity coming due in 2024. "We expect the company's 2022 EBITDA and credit metrics will be weaker than in 2021 because of the depressed conditions in its cyclical end markets. While FXI performed well in 2021 when the economic recovery spurred rising demand in its end markets, we believe the economic slowdown in 2022 has negatively affected its revenue and profitability due to the reduced demand in the bedding, comfort, and furniture end markets. Headwinds stemming from raw material cost inflation and supply chain bottlenecks are also reducing its profitability because the company faced challenges in passing on higher input costs to its customers in a timely basis during the first half of the year, which led to a materially weak performance. While FXI has managed to recoup some of its lost margins through higher selling prices, via collar-triggered price increases and other pricing actions, as well as management's ongoing cost-reduction initiatives, we expect its credit metrics will remain depressed relative to historical levels. We also expect its revenue and EBITDA will decline year over year in 2022 and 2023 amid the weak economic outlook, which will lead it to maintain unsustainably high S&P Global Ratings-adjusted debt to EBITDA. That said, we forecast FXI will improve its gross and EBTIDA margins year over year in 2023 as its raw material costs continue to moderate from their previously elevated levels. "The company's sustained negative FOCF has pressured its liquidity and raised the refinancing risk related to its sizeable debt maturing in the next four years. Given its weak earnings and existing high interest burden, we anticipate FXI will generate negative funds from operations (FFO) in 2022 and 2023, which will further pressure its liquidity. The company's persistently negative FOCF over the last few years has hindered its ability to build liquidity as it approaches the bullet maturity of one tranche of its notes in November 2024, with another tranche due in November 2026. Unless its operating performance improves significantly, we believe FXI's financial commitments will be unsustainable over the long term and anticipate it may be unable to service the debt. Given our expectation that its leverage will now track to unsustainably high levels amid the high interest rate environment, we believe the refinancing risk related to its upcoming maturities has increased. Our base-case forecast does not incorporate a debt exchange, which we may view as distressed. "The negative outlook reflects our view that FXI's credit metrics will remain stressed and in line with the current rating over the next 12 months.Given its suppressed business performance and high debt levels, we expect that the company's S&P Global Ratings-adjusted debt to EBITDA will be in the high-single-digit area over the next 12 months. We also expect its FFO to debt will be close to zero or slightly negative over the same period. We believe these credit metrics are unsustainable given the company's high interest burden, debt maturity profile, and elevated refinancing risk. "We continue to assess FXI's business risk as weak. Our ratings reflect the company's limited geographic diversity, customer concentration, and exposure to cyclical end markets. Its strong market position and management's cost-reduction initiatives somewhat offset these risks. FXI's business risk profile also benefits somewhat from the chemical collars on some of its customer contracts. "The negative outlook on FXI Holdings Inc. reflects our expectation that its credit metrics and liquidity will remain pressured over the next 12 months. We anticipate that the company will continue to face weak end-market demand in its retail and original equipment manufacturer (OEM) bedding and furniture segments while the automotive end market continues to be negatively affected by the ongoing chip shortage. We also expect FXI's overall profitability will be negatively affected by ongoing inflationary pressures, although its input costs have recently shown signs of moderation. Over the next 12 months, we expect the company's leverage will become unsustainably high given the rising interest environment and its sizeable debt maturity coming due in 2024. We have not incorporated any significant debt-funded acquisitions or shareholder rewards in our base-case scenario. "We could lower our rating on FXI over the next few months if its end-market demand weakens further due to a global recession or its EBITDA margins decline relative to our base case such that its FOCF turns materially negative on an annual basis, which would pressure its liquidity and covenant compliance. We could also lower our ratings if we expect the company will be unable to make the interest payments on its debt or if--in the next few months--it is unable to proactively refinance its upcoming debt maturity. We could also downgrade FXI if it pursues a debt exchange we view as distressed. "We could raise our rating on FXI over the next 12 months if its earnings are better than we expect or an improved economic outlook causes its S&P Global Ratings-adjusted debt to EBITDA to improve and remain below 8x while its FFO to debt rises to the mid-single-digit percent area. We would need to be confident that it could refinance its upcoming debt maturities and improve its overall financial profile and liquidity position, to enable it to service its ongoing fixed charges, before raising the rating. We would also need it to commit to maintain financial policies that would support its maintenance of its credit measures at these improved levels after factoring in its growth initiatives." ESG credit factors: E-3, S-2, G-3 S&P said, "Environmental factors are a moderately negative consideration in our credit rating analysis of FXI Holdings Inc., which is primarily a commodity chemical producer of engineered polyurethane foam products and solutions used in bedding, furniture, comfort, and acoustic applications. The asset-intensive nature of commodity chemical production lends itself to scrutiny and regulations related to carbon dioxide emissions, waste, and pollution, and the company is susceptible to ongoing risks related to the production, transport, storage, utilization, and disposal of products that are potentially hazardous, similar to the risks faced by other companies in the chemicals sector. Governance is a moderately negative consideration, as is the case for most rated entities owned by private-equity sponsors. We believe the company's highly leveraged financial risk profile points to corporate decision-making that prioritizes the interests of its controlling owners. This also reflects private-equity owners' generally finite holding periods and focus on maximizing shareholder returns." GEX MANAGEMENT: Incurs $21K Net Loss in Third Quarter ----------------------------------------------------- GEX Management, Inc. has filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $21,465 on $641,923 of revenues for the three months ended Sept. 30, 2022, compared to a net loss of $177,588 on $281,805 of revenues for the three months ended Sept. 30, 2021. For the nine months ended Sept. 30, 2022, the Company reported a net loss of $572,532 on $1.66 million of revenues compared to a net loss of $732,238 on $870,320 of revenues for the nine months ended Sept. 30, 2021. As of Sept. 30, 2022, the Company had $404,377 in total assets, $6.47 million in total liabilities, and a total shareholders' deficit of $6.07 million. GEX Management stated, "To date, the Company has funded its operations primarily through public and private offerings of common stock, our line of credit, short- term discounted and convertible notes payable. The Company has identified several potential financing sources in order to raise the capital necessary to fund operations through December 30, 2022. "In addition to the aforementioned current sources of capital that will provide additional short-term liquidity, the Company is currently exploring various other alternatives including debt and equity financing vehicles, strategic partnerships, government programs that may be available to the Company, as well as trying to generate additional sales and increase margins. However, at this time the Company has no commitments to obtain any additional funds, and there can be no assurance such funds will be available on acceptable terms or at all. If the Company is unable to obtain additional funding and improve its operations, the Company's financial condition and results of operations may be materially adversely affected and the Company may not be able to continue operations, which raises substantial doubt about its ability to continue as a going concern. Additionally, even if the Company raises sufficient capital through additional equity or debt financing, strategic alternatives or otherwise, there can be no assurances that the revenue or capital infusion will be sufficient to enable it to develop its business to a level where it will be profitable or generate positive cash flow. If the Company raises additional funds through the issuance of equity or convertible debt securities, the percentage ownership of our stockholders could be significantly diluted, and these newly issued securities may have rights, preferences or privileges senior to those of existing stockholders. If the Company incurs additional debt, a substantial portion of its operating cash flow may be dedicated to the payment of principal and interest on such indebtedness, thus limiting funds available for business activities. The terms of any debt securities issued could also impose significant restrictions on the Company's operations. Broad market and industry factors may seriously harm the market price of our common stock, regardless of our operating performance, and may adversely impact our ability to raise additional funds. Similarly, if the Company's common stock is delisted from the public exchange markets, it may limit its ability to raise additional funds." A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/Archives/edgar/data/1681556/000149315222033116/form10-q.htm About GEX Management GEX Management, Inc. -- http://www.gexmanagement.com-- is a management consulting company providing Strategy and Enterprise Technology Consulting solutions to public and private companies across a variety of industry sectors. GEX Management is strategically purposed to provide tailored business service products and services to its clients. GEX Management reported a net loss of $6.05 million for the year ended Dec. 31, 2021, compared to a net loss of $224,947 for the year ended Dec. 31, 2020. As of June 30, 2022, the Company had $277,779 in total assets, $5.50 million in total liabilities, and a total shareholders' deficit of $5.22 million. Houston, Texas-based Hudgens CPA, PLLC, the Company's auditor since 2021, issued a "going concern" qualification in its report dated July 20, 2022, citing that the Company has suffered recurring losses from operations and has a net capital deficiency that raises substantial doubt about its ability to continue as a going concern. GIGA-TRONICS INC: Incurs $903K Net Loss in Second Quarter --------------------------------------------------------- Giga-Tronics Incorporated has filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $903,000 on $7.78 million of revenues for the three months ended Sept. 30, 2022, compared to a net loss of $363,000 on $6.37 million of revenues for the three months ended Sept. 30, 2021. For the nine months ended Sept. 30, 2022, the Company reported a net loss of $3.36 million on $21.53 million of revenues compared to a net loss of $2 million on $19.20 million of revenues for the nine months ended Sept. 30, 2021. As of Sept. 30, 2022, the Company had $48.26 million in total assets, $25.31 million in total liabilities, and $22.96 million in total stockholders' equity. Giga-Tronics stated, "Our primary sources of liquidity has historically been funded by our parent company BitNile. We expect for a limited exception, BitNile will cease funding us in the near future. "Without the availability of working capital from BitNile, unless we are successful in securing additional financing from third parties, we believe that we will not have sufficient cash to meet our needs over the next 12 months as well as BitNile's position as a secured creditor. Our ability to obtain additional financing is subject to several factors, including market and economic conditions, our performance and investor and lender sentiment with respect to us and our industry. If we are unable to raise additional financing in the near term as needed, our operations and production plans may be scaled back or curtailed and our operations and growth would be impeded." A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/719274/000095017022025673/giga-20220930.htm 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. GROWLIFE INC: Incurs $826K Net Loss in Third Quarter ---------------------------------------------------- GrowLife, Inc., has filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $825,769 on $225,918 of net revenue for the three months ended Sept. 30, 2022, compared to a net loss of $609,736 on $1.23 million of net revenue for the three months ended Sept. 30, 2021. For the nine months ended Sept. 30, 2022, the Company reported a net loss of $3.12 million on $1.40 million of net revenue compared to a net loss of $4.39 million on $5.07 million of net revenue for the nine months ended Sept. 30, 2021. As of Sept. 30, 2022, the Company had $2.71 million in total assets, $9.97 million in total current liabilities, $59,057 in total long-term liabilities, and a total stockholders' deficit of $7.33 million. Since inception, the Company has sustained significant operating losses and such losses are expected to continue for the foreseeable future. As of Sept. 30, 2022, the Company had an accumulated deficit of $163 million, cash and cash equivalents of $40,000 and a working capital deficit of $3,366,000, excluding derivative liability, convertible debt, acquisition costs payable in stock and right of use liability. Net cash used in operating activities was $1,505,000 for the nine months ended Sept. 30, 2022. The Company believes it will require additional funding in order to execute its business plans. The majority of the Company's cash is currently held at EZ-CLONE and as a result of the ongoing litigation with EZ-CLONE Founder's, such cash is not accessible for general corporate use. GrowLife stated, "To fund further GrowLife operations, we will need to raise additional capital. We may obtain additional financing in the future through the issuance of its common stock, or through other equity or debt financings. Our ability to continue as a going concern or meet the minimum liquidity requirements in the future is dependent on its ability to raise significant additional capital, of which there can be no assurance. If the necessary financing is not obtained or achieved, we will likely be required to reduce its planned expenditures, which could have an adverse impact on the results of operations, financial condition and our ability to achieve its strategic objective. There can be no assurance that financing will be available on acceptable terms, or at all. The financial statements contain no adjustments for the outcome of these uncertainties. These factors raise substantial doubt about our ability to continue as a going concern and have a material adverse effect on our future financial results, financial position and cash flows." A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1161582/000165495422015605/phot_10q.htm About GrowLife GrowLife, Inc. (PHOT)-- http://www.shopgrowlife.com-- focuses on functional mushroom business opportunities. The Company sees a growing market, intends to service its existing distribution channel and will build on opportunities in the medicinal mushroom industry. GrowLife reported a net loss of $5.47 million for the year ended Dec. 31, 2021, compared to a net loss of $6.38 million for the year ended Dec. 31, 2020. As of June 30, 2022, the Company had $3.28 million in total assets, $10.35 million in total current liabilities, $136,873 in total long term liabilities, and a total stockholders' deficit of $7.20 million. Irvine, Calif.-based Macias Gini & O'Connell LLP, the Company's auditor since 2021, issued a "going concern" qualification in its report dated May 16, 2022, citing that the Company has suffered recurring losses from operations, incurred negative cash flows from operating activities, and has an accumulated deficit that raise substantial doubt about its ability to continue as a going concern. HARRISBURG DIOCESE: Joint Plan Proposes $18.5M Survivors' Trust --------------------------------------------------------------- The Daily Item reports that the Roman Catholic Diocese of Harrisburg and the Tort Claimants Committee have filed a joint plan of reorganization with the Federal Bankruptcy Court for the Middle District of Pennsylvania, one of the final steps needed in settling the Diocese's Chapter 11 reorganization case. Under the proposed Plan, the diocese and its related entities will create a Survivor Compensation Trust and provide funding to the trust in an amount equal to $7.5 million. The settling insurers will contribute an additional $10.75 million to bring the total Trust amount to $18.25 million. This Trust will provide financial restitution for survivors of clergy sexual abuse. The details of the Trust are included in the reorganization plan. Once established, a Trust administrator, and not the Diocese, will determine compensation amounts and claim eligibility for abuse survivors. The report notes about 54 timely filed proofs of claim from clergy abuse survivors were received during the reorganization process. It declared bankruptcy after experiencing years of financial hardship, that was exacerbated by a Grand Jury investigation and subsequent lawsuits, and after every attempt to scale back operations, including reducing overhead, were unsuccessful. About Roman Catholic Diocese of Harrisburg The Diocese of Harrisburg is comprised of 89 parishes in 15 counties in Central Pennsylvania. The Roman Catholic Diocese of Harrisburg sought protection under Chapter 11 of the Bankruptcy Code (Bankr. M.D. Pa. Case No. 20-00599) on Feb. 19, 2020, listing up to $10 million in assets and up to $100 million in liabilities. Judge Henry W. Van Eck oversees the case. The Debtor tapped Waller Lansden Dortch & Davis, LLP as legal counsel; Kleinbard, LLC as special counsel; Keegan Linscott & Associates, PC as financial advisor; and Epiq Corporate Restructuring, LLC as claims and noticing agent. The Hon. Michael Hogan has been tapped as unknown abuse claims representative. The U.S. Trustee for Regions 3 and 9 appointed a committee to represent tort claimants, which has retained Stinson, LLP, as counsel. HEALTHIER CHOICES: Incurs $2.1 Million Net Loss in Third Quarter ---------------------------------------------------------------- Healthier Choices Management Corp. has filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $2.07 million on $5.77 million of net total sales for the three months ended Sept. 30, 2022, compared to a net loss 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 net loss of $4.74 million on $16.96 million of net total sales compared to a net loss of $1.57 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, $14.72 million in convertible preferred stock, and $22.61 million in total stockholders' equity. The Company expects to continue incurring losses for the foreseeable future but the Company does not believe there are any substantial doubts about the Company's ability to continue as a going concern. The Company said its current cash and cash generated from operations will be sufficient to meet the projected operating expenses for the foreseeable future through at least the next twelve months from the issuance of these unaudited condensed consolidated financial statements. A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/844856/000084485622000046/form10q.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. HJ DYNAMIC: Unsecureds Will Get 10% of Claims in Subchapter V Plan ------------------------------------------------------------------ HJ Dynamic Holdings, LLC, et al., filed with the U.S. Bankruptcy Court for the District of Delaware a Subchapter V Plan of Reorganization dated November 22, 2022. As of the Petition Date, the Debtors: (a) owned and operated (i) six Happy Joe's locations, a vibrant, 50-year-old chain of pizza and ice cream restaurants, and (ii) two Tony Sacco's locations; and (b) indirectly franchised the Happy Joe's concept to thirty seven franchisees in both the United States and the Middle East and the Tony Sacco's concept to two franchisees in the United States (the "Franchised Locations"). The Debtors filed these Subchapter V Cases in an effort to reset and refresh their operations through the implementation of a restructuring business plan that has involved the closing of their Tony Sacco's company restaurants (again, with no impact on the Franchised Tony Sacco's Locations) and certain of the Happy Joe's Debtor-owned restaurants. The Debtors have moved rapidly in these cases to minimize bankruptcy-related costs while utilizing the benefits of subchapter V to create a path forward as financially stronger and more stable companies. On October 28, 2022, the Debtors filed a motion to, inter alia, approve the sale of certain assets (primarily equipment and inventory) formerly used by the Debtors in their Galesburg, Illinois and Kewanee, Illinois restaurants. The purchase price for the Galesburg assets totaled $56,740.00 and the purchase price for the Kewanee assets totaled $37,675.00. Such amounts were paid by the buyers (i.e., Leslie's Pizzeria Co. and Leslie Boynton for the Galesburg location and, for the Kewanee location, Fourboysandadaisy Pizzeria LLC and Heather Avery) via execution of promissory notes in favor of DRA. The performance of the obligations under these notes is secured by security interests granted to DRA in the purchased assets. The motion remains pending as of the date of this Plan. Pursuant to the Plan, the Debtors' primary equity holder, AAVIN, will loan the Debtors the Unsecured Claim Distribution Amount upon the Effective Date as a form of exit financing, in the amount of $66,000. In consideration for loaning the Unsecured Claim Distribution Amount, the Debtors will provide AAVIN with the release. The Debtors shall pay the Unsecured Claim Distribution Amount to Holders of Allowed General Unsecured Claims on a Pro Rata basis on the Effective Date of the Plan or as soon as practicable following the later of the Effective Date or the date on which such Allowed Claim becomes Allowed. Class 6 consists of General Unsecured Claims. The allowed unsecured claims total $654,000.00. This Class will receive a distribution of 10% of their allowed claims. * Class 6(a) consists of all General Unsecured Claims against HJ Holdings. Each Holder of an Allowed Class 6(a) General Unsecured Claim shall receive, in Cash, a Pro Rata Share of the Unsecured Claim Distribution Amount as soon as reasonably practicable following the later of the Effective Date or the date on which such Allowed Class 6(a) Claim becomes Allowed. Distributions to Holders of Allowed Class 6(a) Claims shall be made in full and complete satisfaction, settlement, discharge, and release of the Allowed Class 6(a) General Unsecured Claims. Class 6(a) is Impaired. * Class 6(b) consists of all General Unsecured Claims against DRA. Each Holder of an Allowed Class 6(b) General Unsecured Claim shall receive, in Cash, a Pro Rata Share of the Unsecured Claim Distribution Amount as soon as reasonably practicable following the later of the Effective Date or the date on which such Allowed Class 6(b) Claim becomes Allowed. Distributions to Holders of Allowed Class 6(b) Claims shall be made in full and complete satisfaction, settlement, discharge, and release of the Allowed Class 6(b) General Unsecured Claims. Class 6(b) is Impaired. * Class 6(c) consists of all General Unsecured Claims against TS Holdings. Each Holder of an Allowed Class 6(c) General Unsecured Claim shall receive, in Cash, a Pro Rata Share of the Unsecured Claim Distribution Amount as soon as reasonably practicable following the later of the Effective Date or the date on which such Allowed Class 6(c) Claim becomes Allowed. Distributions to Holders of Allowed Class 6(c) Claims shall be made in full and complete satisfaction, settlement, discharge, and release of the Allowed Class 6(c) General Unsecured Claims. Class 6(c) is Impaired. * Class 6(d) consists of all General Unsecured Claims against TS. Each Holder of an Allowed Class 6(d) General Unsecured Claim shall receive, in Cash, a Pro Rata Share of the Unsecured Claim Distribution Amount as soon as reasonably practicable following the later of the Effective Date or the date on which such Allowed Class 6(d) Claim becomes Allowed. Distributions to Holders of Allowed Class 6(d) Claims shall be made in full and complete satisfaction, settlement, discharge, and release of the Allowed Class 6(d) General Unsecured Claims. Class 6(d) is Impaired. Class 8 consists of all Equity Interests in the Debtors. Holders of Equity Interests in the Debtors shall retain such Equity Interests. Class 8 is Unimpaired. Holders of Equity Interests are not entitled to vote to accept or reject the Plan. Upon the Effective Date, as set forth in the AAVIN Amendment, the AAVIN Prepetition Credit Documents shall be amended to provide for the assumption and payment of the DIP Claim, which shall, except as expressly provided herein, be governed by the terms of the AAVIN Prepetition Credit Documents. On the Effective Date, AAVIN shall deposit the Unsecured Claim Distribution Amount into a segregated account in the name of the Reorganized Debtors, which shall be used for the sole purpose of funding Pro Rata Distributions to Holders of Allowed General Unsecured Claims. The Debtors shall reserve sufficient Cash on the Effective Date to pay all Administrative Expense Claims, Other Secured Claims, Priority Tax Claims, Priority Non-Tax Claims and Cure amounts in the Maximum Amount. All Cash remaining on reserve after all Administrative Expense Claims, Priority Tax Claims, Priority Non Tax Claims and Cure amounts have been either Disallowed or Allowed and paid in accordance with the Plan will vest in the Reorganized Debtors. The Reorganized Debtors shall further use Cash to make Distributions to AAVIN and LK Diversified in connection with the Allowed DIP Claim, Allowed AAVIN Secured Claim and Allowed LK Diversified Seller Note Claim, respectively, in the ordinary course as such payments come due pursuant to the terms of the AAVIN Loan and Investment Agreement and Seller Note, as applicable. The Reorganized Debtors will continue to operate with the primary purpose of conducting their restaurant business. A full-text copy of the Subchapter V Plan dated November 22, 2022, is available at https://bit.ly/3uePbyt from PacerMonitor.com at no charge. Counsel to Debtors is: SAUL EWING LLP Mark Minuti, Esq. Monique B. DiSabatino, Esq. 1201 N. Market Street, Suite 2300 P.O. Box 1266 Wilmington, DE 19899 Telephone: (302) 421-6800 Email: mark.minuti@saul.com monique.disabatino@saul.com About HJ Dynamic Holdings, LLC HJ Dynamic Holdings, LLC, TS Dynamic Holdings, LLC, Dynamic Restaurant Acquisition, Inc. d/b/a Happy Joe's Pizza, and TS Dynamic Acquisition, Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 22-10837) on September 2, 2022. In the petition signed by Thomas A. Sacco, president and CEO, the Debtor disclosed up to $1 million in assets and up to $10 million in liabilities. Judge J. Kate Stickles oversees the case. Mark Minuti, Esq., at Saul Ewing Arnstein & Lehr, LLP is the Debtor's counsel. AAVIN Mezzanine Fund, LP and AAVIN Equity Partners II, LLP, as DIP Lenders, are represented by Reinhart Boerner Van Deuren s.c and Ashby & Geddes, P.A. HOBBY LOBBY: Case Summary & Eight Unsecured Creditors ----------------------------------------------------- Debtor: Hobby Lobby Marine LLC 1423 Bay Avenue Toms River, NJ 08753 Case No.: 22-19381 Business Description: Hobby Lobby specializes in brokerage sales of pre-owned Grady-White boats. It also offers summer slip rentals, jet-ski slips and winter storage. Chapter 11 Petition Date: November 28, 2022 Court: United States Bankruptcy Court District of New Jersey Debtor's Local Bankruptcy Counsel: Douglas T. Tabachnik, Esq. LAW OFFICES OF DOUGLAS T. TABACHNICK, P.C. 63 W. Main St. Suite C Freehold, NJ 07728-2141 Tel: (732) 780-2760 Fax: (72) 780-2761 Email: dtabachnik@dttlaw.com Debtor's Lead Bankruptcy Counsel: GOLDSTEIN & MCCLINTOCK, LLLP Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Robert Tweer, co-managing member. A full-text copy of the petition containing, among other items, a list of the Debtor's eight unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/OTYO2QA/Hobby_Lobby_Marine_LLC__njbke-22-19381__0001.0.pdf?mcid=tGE4TAMA IBIO INC: Posts $18.1 Million Net Loss in First Quarter ------------------------------------------------------- iBio, Inc. has filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss available to the Company's stockholders of $18.13 million on zero revenue for the three months ended Sept. 30, 2022, compared to a net loss available to the Company's stockholders of $9 million on $84,000 of revenues for the three months ended Sept. 30, 2021. As of Sept. 30, 2022, the Company had $84.56 million in total assets, $36.20 million in total liabilities, and $48.37 million in total stockholders' equity. As of Sept. 30, 2022, the Company had cash and cash equivalents plus debt securities of approximately $23.5 million, including approximately $6 million of restricted cash, as compared to $39.5 million as of June 30, 2022. In an effort to improve liquidity and runway, the Company recently announced it was selling its CDMO business and facility, reducing its work force by approximately 60% (a reduction of approximately 69 positions), and ceasing operations of its CDMO thereby reducing annual spending by approximately 50%. Potential options being considered to further increase liquidity include lowering the Company's expenses further, focusing product development on a select number of product candidates, the sale or out-licensing of certain product candidates, raising money from capital markets, grant revenue or collaborations, or a combination thereof. During the first quarter of fiscal year 2023, the Company completed at-the-market offerings and raised $1.1M selling approximately 176,000 shares of common stock. iBio stated, "The Company's cash, cash equivalents and investments in debt securities is not anticipated to be sufficient to support operations beyond Q3 of Fiscal 2023 unless the Company reduces its burn rate further or increases its capital as described above. Regardless of whether the Company is able to reduce its burn rate or sell or out-license certain assets or parts of the business, the Company will need to raise additional capital in order to fully execute its longer-term business plan. It is the Company's goal to implement one or more potential options described above to allow the Company to have a cash runway for at least 12 months from the date of the filing of this Quarterly Report on Form 10-Q. However, there can be no assurance that the Company will be successful in implementing any of the options that we are evaluating." A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1420720/000155837022017874/ibio-20220930x10q.htm About iBio Inc. iBio, Inc. -- http://www.ibioinc.com-- is a plant-based biologics manufacturing company. Its FastPharming System combines vertical farming, automated hydroponics, and novel glycosylation technologies to rapidly deliver high-quality monoclonal antibodies, vaccines, bioinks and other proteins. iBio is developing proprietary products which include biopharmaceuticals for the treatment of cancers, as well as fibrotic and infectious diseases. The Company's subsidiary, iBio CDMO LLC, provides FastPharming Contract Development and Manufacturing Services along with Glycaneering Development Services for advanced recombinant protein design. iBio reported a net loss attributable to the Company of $50.30 million for the year ended June 30, 2022, a net loss attributable to the Company of $23.21 million for the year ended June 30, 2021, a net loss attributable to the company of $16.44 million for the year ended June 30, 2020, and a net loss attributable to the Company of $17.59 million for the year ended June 30, 2019. As of June 30, 2022, the Company had $99.41 million in total assets, $35.92 million in total liabilities, and $63.48 million in total equity. Holmdel, New Jersey-based CohnReznick LLP, the Company's auditor since 2010, issued a "going cocnern" qualification in its report dated Oct. 11, 2022, citing that the Company has suffered recurring losses from operations and negative cash flows from operating activities for the years ended June 30, 2022 and 2021 and has an accumulated deficit as of June 30, 2022. These matters, among others, raise substantial doubt about its ability to continue as a going concern. IRONSTONE PROPERTIES: Reports Q3 Net Operating Loss of $158K ------------------------------------------------------------ Ironstone Properties, Inc. has filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net operating loss of $158,362 for the three months ended Sept. 30, 2022, compared to a net operating loss of $140,862 for the three months ended Sept. 30, 2021. For the nine months ended Sept. 30, 2022, the Company reported a net operating loss of $447,949 compared to a net operating loss of $350,502 for the same period during the prior year. As of Sept. 30, 2022, the Company had $4.75 million in total assets, $3.21 million in total liabilities, and $1.54 million in total stockholders' equity. Ironstone stated, "Ironstone Group has incurred losses and negative cash flows from operations over the last ten years. The Company has operated in the past principally with the assistance of loans from private institutions and related party individuals. The on-going accrual of unpaid interest on external and related party debt, excluding the LOC, continues to increase the financial risk to the Company as a going concern. Conversion of a material portion of the outstanding debt to equity will help alleviate such financial pressure." A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/723269/000143774922027891/irns20220930_10q.htm About Ironstone Ironstone Properties, Inc.'s main assets are investments in non-marketable securities of TangoMe Inc., and Buoy Health, Inc., and marketable securities of Arcimoto Inc. The Company said there can be no assurance that a market will continue to exist for these investments. Ironstone Properties reported a net operating loss of $523,401 for the 12 months ended Dec. 31, 2021, compared to a net operating loss of $301,658 for the 12 months ended Dec. 31, 2020. As of March 31, 2022, the Company had $5.48 million in total assets, $3.90 million in total liabilities, and $1.58 million in total stockholders' equity. JAMES LARRY BAIN: Proposes Auction of Cullman County Property ------------------------------------------------------------- James Larry Bain asks the U.S. Bankruptcy Court for the Northern District of Alabama to authorize the sale of approximately 5.4 acres with a single-family residence and barn located in Cullman County, Alabama, PIN 67594, at public auction, virtually or in-person, with a reserve of $350,000. The real property is free and clear, subject to no mortgages or liens. The most recent tax assessment values the real property at $350,600. The sale is not in the ordinary course of the Debtor's business. The Debtor moves the Court to approve his motion to authorize him to sell the real property by public auction in the discretion of the auctioneer, with a reserve of $350,000, and to use the proceeds to fund plan. He prays for such other relief as may be appropriate. James Larry Bain sought Chapter 11 protection (Bankr. N.D. Ala. Case No. 16-41436) on Sept. 2, 2016. The Debtor tapped Tameria S. Driskill, Esq., as counsel. On Aug. 30, 2018, the Court appointed Steve Carver and RE/MAX Guntersville as broker. KAYA HOLDINGS: Incurs $7.4 Million Net Loss in Third Quarter ------------------------------------------------------------ Kaya Holdings, Inc. has filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $7.43 million on $172,968 of net sales for the three months ended Sept. 30, 2022, compared to net income of $3.93 million on $214,051 of net sales for the three months ended Sept. 30, 2021. For the nine months ended Sept. 30, 2022, the Company reported a net loss of $5.46 million on $556,818 of net sales compared to a net income of $7.52 million on $690,267 of net sales for the same period in 2021. As of Sept. 30, 2022, the Company had $961,522 in total assets, $20.83 million in total liabilities, and a total stockholders' deficit of $19.87 million. At Sept. 30, 2022 the Company has a working capital deficiency of $12,794,397 and is totally dependent on its ability to raise capital. Kaya Holdings stated, "The Company has a plan of operations and acknowledges that its plan of operations may not result in generating positive working capital in the near future. Even though management believes that it will be able to successfully execute its business plan, which includes third-party financing and capital issuance, and meet the Company's future liquidity needs, there can be no assurances in that regard. These matters raise substantial doubt about the Company's ability to continue as a going concern." A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1530746/000190359622000849/sfskays10q111322.htm About Kaya Holdings Kaya Holdings, Inc. -- http://www.kayaholdings.com-- is a vertically integrated legal marijuana enterprise that produces, distributes, and/or sells a full range of premium cannabis products including flower, oils, vape cartridges and cannabis infused confections, baked goods and beverages through a fully integrated group of subsidiaries and companies supporting highly distinctive brands. Kaya Holdings reported net income of $9.39 million for the 12 months ended Dec. 31, 2021, compared to a net loss of $12.30 million for the 12 months ended Dec. 31, 2020. As of June 30, 2022, the Company had $987,515 in total assets, $13.42 million in total liabilities, and a total stockholders' deficit of $12.44 million. Houston, Texas-based M&K CPAS, PLLC, the Company's auditor since 2018, issued a "going concern" qualification in its report dated April 18, 2022, citing that the Company has suffered net losses from operations and has a net capital deficiency, which raises substantial doubt about its ability to continue as a going concern. KUBERLAXMI LLC: Voluntary Chapter 11 Case Summary ------------------------------------------------- Debtor: Kuberlaxmi LLC FKA Bhaktel, LLC DBA Country Club Inn & Suites 1104 Zanderson Ave. Jourdanton, TX 78026 Case No.: 22-51323 Chapter 11 Petition Date: November 26, 2022 Court: United States Bankruptcy Court Western District of Texas Judge: Hon. Michael M. Parker Debtor's Counsel: Jeff Carruth, Esq. WEYCER, KAPLAN, PULASKI & ZUBER, P.C. 3030 Matlock Rd. Suite 201 Arlington, TX 76015 Tel: (713) 341-1158 Email: jcarruth@wkpz.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Jatin Bhakta as manager. 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/F35RPVI/Kuberlaxmi_LLC__txwbke-22-51323__0001.0.pdf?mcid=tGE4TAMA LIVEONE INC: Posts $3.4 Million Net Loss in Second Quarter ---------------------------------------------------------- LiveOne, Inc. has filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $3.41 million on $23.53 million of revenue for the three months ended Sept. 30, 2022, compared to a net loss of $15.24 million on $21.92 million of revenue for the three months ended Sept. 30, 2021. For the six months ended Sept. 30, 2022, the Company reported a net loss of $2.06 million on $46.75 million of revenue compared to a net loss of $23.28 million on $60.69 million of revenue for the six months ended Sept. 30, 2021. As of Sept. 30, 2022, the Company had $66.09 million in total assets, $76.24 million in total liabilities, and a total stockholders' deficit of $10.15 million. LiveOne stated, "The Company's principal sources of liquidity have historically been its debt and equity issuances and its cash and cash equivalents (which cash, cash equivalents and restricted cash amounted to $7.4 million as of September 30, 2022)...[T]he Company has a history of losses, with the exception of net income of $1.3 million during the quarter ended June 30, 2022 and had a working capital deficiency of $19.4 million as of September 30, 2022. These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern within one year from the date that these financial statements are filed." A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1491419/000121390022073427/f10q0922_liveoneinc.htm About LiveOne Headquartered in Los Angeles, California, LiveOne, Inc. (NASDAQ: LVO) (formerly known as LiveXLive Media, Inc.) is a creator-first, music, entertainment and technology platform focused on delivering premium experiences and content worldwide through memberships and live and virtual events. LiveOne reported a net loss of $43.91 million for the year ended March 31, 2022, compared to a net loss of $41.82 million for the year ended March 31, 2021. As of June 30, 2022, the Company had $72.37 million in total assets, $82.15 million in total liabilities, and a total stockholders' deficit of $9.78 million. Los Angeles, California-based BDO USA, LLP, the Company's former auditor, issued a "going concern" qualification in its report dated June 29, 2022, citing that the Company has suffered recurring losses from operations, negative cash flows from operating activities and has a net capital deficiency that raise substantial doubt about its ability to continue as a going concern. MGA MANAGEMENT: Wins Cash Collateral Access Thru Dec 31 ------------------------------------------------------- The U.S. Bankruptcy Court for the District of Connecticut, Hartford Division, authorized MGA Management, LLC to use the cash collateral of SecurityPlus Federal Credit Union on an interim basis in accordance with the budget, with a 10% variance, through December 31, 2022. MGA requires interim access to cash receipts to pay business expenses necessary to avoid irreparable harm to the estate. As of the Petition Date, the Credit Union made loans to the Debtor for which it received security interests. As of November 5, 2019, for valuable consideration received, the Debtor executed in favor of the Credit Union a Promissory Note in the original principal amount of $1.6 million. As of the Petition Date, the Debtor owes at least $1.785 on account of the Note. An itemization of the foregoing is set forth in the Credit Union's proof of claim, which Claim the Debtor does not contest at this time. The Debtor acknowledges (i) as of the Petition Date it owed at least $1.785 million to the Credit Union pursuant to the Loan Documents; (ii) the Prepetition Obligations constitute legal, valid, binding, and non-avoidable obligations of the Debtors that are not subject to any challenge or defense pursuant to the Code or applicable non-bankruptcy law; (iii) the Prepetition Obligations were validly and properly accelerated by the Credit Union prior to the Petition Date; (iv) as to the Prepetition Obligations or payments thereon, the Debtors and their estates have no claims, objections, challenges, causes of action, and/or choses in action; (v) any amount owed on account of the Note is secured by valid, properly perfected, enforceable and unavoidable first priority security interests and/or liens in or against the all of the Collateral. As adequate protection, the Credit Union is granted a continuing post-petition lien and security interest in all of the Debtor's prepetition property as it existed on the Petition Date, of the same type against which the Credit Union held validly perfected liens and security interests as of the Petition Date; and a continuing post-petition lien in all property acquired by the Debtor after the Petition Date of the same type against which the Credit Union held validly perfected liens and security interests as of the Petition Date. The Debtor will also provide a continuing postpetition liens reflecting the Debtor's Adequate Protection payments of $11,928 as expressed in the Budget. The Credit Union's Replacement Liens will maintain the same priority, validity, extent and enforceability as the Credit Union's security interest and/or liens and liens had on the Prepetition Collateral and will be recognized only to the extent of any actual diminution in the value of the Prepetition Collateral resulting from the use of cash collateral pursuant to the Order. A further hearing on the matter is scheduled for January 20, 2023 at 12 p.m. A copy of the order is available at https://bit.ly/3VeNKvP from PacerMonitor.com. About MGA Management MGA Management, LLC, is the fee simple owner of a real property located in Hartford, Connecticut, having a current value of $3 million. MGA Management filed a petition for relief under Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. D. Conn. Case No. 22-20315) on May 9, 2022. In the petition signed by Michael Ancona, member, the Debtor listed $3,041,461 in total assets and $1,452,000 in total liabilities. Judge James J. Tancredi oversees the case. Joseph J. D'Agostino, Jr., Esq., serves as the Debtor's counsel. MITEL NETWORKS: S&P Raises ICR to 'CCC+' on New Capital Structure ----------------------------------------------------------------- S&P Global Ratings raised its issuer credit rating on Ottawa-based telephony communications company Mitel Networks (International) Ltd. to 'CCC+' from 'SD' (selective default) and its issue-level rating on the company's remaining first-lien and second-lien term loans to 'CCC-' from 'D' (default). The '6' recovery rating on the debt is unchanged. At the same time, S&P Global Ratings assigned its 'B' issue-level rating and '1' recovery rating to Mitel's US$156 million superpriority debt due 2027 and new US$65 million revolver credit facility (RCF) due 2025. Finally, S&P assigned its 'CCC+' issue-level rating and '3' recovery rating to the company's US$576 million second-out facility due 2027 (recovery rating: '3'), and its 'CCC-' issue-level rating and '6' recovery rating to Mitel's US$125 million third-out facility due 2027. The negative outlook reflects the execution risk regarding Mitel's strategy to migrate its customers to the RingCentral platform, which could delay revenues, resulting in weaker-than-forecast cash flow and free operating cash flow (FOCF) that could make Mitel's capital structure unsustainable. Mitel Networks has completed its new capital structure, including exchanging its first-lien and second-lien debt for new second-out and third-out facilities with longer maturities, thereby generating additional liquidity through the new superpriority facility and revolver, and subordinating the existing first-lien and second-lien facilities. The company's distressed exchanges have alleviated some of Mitel's near-term liquidity concerns, although S&P still views the capital structure as unsustainable. Mitel completed its debt exchange transactions, which included: -- Replacing its US$90 million RCF, maturing due November 2023, with a new US$ 65million RCF, maturing November 2025; -- Issuing a new US$156 million superpriority facility due 2027, exchanging part of the first-lien and second-lien term loans for a US$576 million second-out debt due 2027, and a US$125 million third-out debt due 2027; -- Restructuring the existing US$281 million first-lien term loan due 2025 as fourth-out debt, and the existing US$108 million second-lien term loan due 2026 as unsecured fifth-out debt; and -- Increasing cash on the balance sheet to US$198 million as of Sept. 30, 2022, pro forma the debt transactions. While these transactions support the company's liquidity for the next 12 months and have extended some of Mitel's debt maturity, the company has also increased its total debt load by US$100 million. S&P said, "We believe Mitel could struggle to materially reduce its leverage through organic growth due to continued operational challenges associated with secular decline in its UC business and increased costs (freight and material costs stemming from supply-chain constraints). In addition, the company continues to face significantly higher costs associated with the migration of its unified communications as a service (UCaaS) customers to Ring's platform. As a result, we forecast that the company's adjusted EBITDA for fiscal 2022 will decline by about the low-to-mid-teens percentage area and could remain flat for fiscal 2023, absent successful execution of strategy. We believe that, despite Mitel's increasing migration revenues and enhanced cost savings, the company's forecast leverage will remain elevated at 10x-11x and the risk remains that any delay in revenue generation, combined with ongoing investments, could lead to negative FOCF and weakening liquidity in the next 12 months." S&P said, "A steady pace of migration payments would support EBITDA generation; however, we expect FOCF deficits will continue. We believe that Mitel is in a significant transition phase to migrate its customers to RingCentral's cloud platform from Mitel's UCaaS and legacy on premise platforms. The payment structure for customers migrated to RingCentral consists of a one-time upfront payment for each seat migrated. However, the migration revenue for UC customers is likely to have a long-time frame--the expected time horizon for transition of the UCaaS customer base (about 745,000 customers) to the RingCentral platform is 24-36 months and that of the UC customer base (about 37 million) to RingCentral over the next decade. Through third-quarter 2022, Mitel has benefited from initial migration payments from existing Mitel users to RingCentral's solution. However, the migration levels have been slower than expected and we believe there remains some execution risk underpinned by weakening macroeconomic conditions. As a result, we expect the higher operating expenditure due to supply-chain headwinds and slower-than-expected migration payment realization could result in negative free cash flow at least over the next 12 months." The negative outlook reflects the execution risk regarding Mitel`s strategy to migrate its customers to the RingCentral platform, which could delay revenues, resulting in weaker-than-forecast cash flow and FOCF that could make the company's capital structure unsustainable. While the restructuring alleviated near-term maturity risk and strengthened liquidity, S&P views Mitel's capital structure as unsustainable longer term. S&P could lower the ratings over the next 12 months if it envisions additional distressed exchanges or debt restructurings. Conditions that could lead to such a scenario are: -- Mitel's operating performance further weakens due to an inability to transition customers to the RingCentral cloud platform or higher-than-anticipated on-premise revenue declines lead to EBITDA deterioration. -- The company continues to burn cash, materially higher than in S&P's base-case scenario, which could lead to a liquidity crisis. S&P could revise the outlook to stable over the next 12 months if Mitel is successful in transitioning customers to RingCentral's cloud solutions and delivers meaningful organic EBITDA growth without pressuring margins more than the base-case assumptions, leading to improvement in leverage measures and an ability to maintain adequate levels of liquidity. MLN US HOLDCO: Moody's Rates $221MM Superpriority Loans 'B2' ------------------------------------------------------------ Moody's Investors Service assigned B2 ratings to MLN US Holdco LLC's ("Mitel") $156 million superpriority term loan and the $65 million superpriority revolving credit facility, Caa3 rating to the $575 million second out term loan and Ca rating to the $124 million third out term loan. At the same time, Moody's affirmed Mitel's Caa3 corporate family rating, Caa2-PD probability of default rating and Ca existing senior secured second lien bank credit facility rating. Moody's also downgraded the existing senior secured first lien bank credit facility rating to Ca from Caa3. The rating outlook remains stable. Mitel completed an "uptiering" transaction on November 18, 2022, whereby the existing $90 million first lien revolving credit facility was fully repaid and replaced with a $65 million superpriority revolving credit facility due November 2025. This transaction was preceded by another "uptiering" transaction on October 18, 2022, which Moody's considered to be a distressed exchange. Through this transaction, a majority of the company's existing lenders agreed to changes in credit agreements that allowed the company to issue debt that is senior in priority to the existing debt. The downgrade of the existing first lien bank debt reflects its junior position to the new $156 million superpriority term loan, $575 million second out term loan and $124 million third out term loan. The superpriority debt provides Mitel with additional liquidity to fund the working capital usage for the ongoing cloud-to-cloud (c2c) migrations to RingCentral (unrated). The company used the proceeds from the second out and third out debt to purchase a portion of its outstanding first lien term loan and second lien term loan respectively on a non-pro-rata basis at a price below par. Post debt exchange, amounts outstanding under the first and second lien term loans are $281 million and $108 million respectively. Assignments: Issuer: MLN US Holdco LLC $155.78 million Gtd Senior Secured Priority Term Loan, Assigned B2 (LGD2) $65 million Gtd Senior Secured Priority Revolving Credit Facility, Assigned B2 (LGD2) $574.51 million Gtd Senior Secured 2nd Lien Term Loan, Assigned Caa3 (LGD4) $123.99 million Gtd Senior Secured 3rd Lien Term Loan, Assigned Ca (LGD5) Affirmations: Issuer: MLN US Holdco LLC Corporate Family Rating, Affirmed Caa3 Probability of Default Rating, Affirmed Caa2-PD $260 million Gtd Senior Secured Existing 2nd Lien Term Loan, Affirmed Ca (LGD6) Downgrades: Issuer: MLN US Holdco LLC $1120 million Senior Secured Existing 1st Lien Term Loan, Downgraded to Ca (LGD5) from Caa3 (LGD5) Withdrawals: Issuer: MLN US Holdco LLC $90 million Gtd Senior Secured 1st Lien Revolving Credit Facility, Withdrawn, previously rated Caa3 (LGD5) Outlook Actions: Issuer: MLN US Holdco LLC Outlook, Remains Stable RATINGS RATIONALE Mitel's Caa3 CFR is constrained by: (1) uncertain business fundamentals due to execution risks and unclear migration payments from the ongoing cloud-to-cloud (c2c) migrations to RingCentral; (2) weak credit metrics, highlighted by high financial leverage with debt-to-EBITDA of 10.1x at LTM June-2022 declining toward 6x over the next 12-18 months due to one-time migration revenue from RingCentral; (3) declining UC (Unified Communications) business; (3) competitive industry environment with several large, more established peers; and (4) aggressive financial policies as a result of private equity ownership. The company benefits from: (1) the potential to benefit from migrating its customer base to RingCentral's Unified Communications as a Service (UCaaS); (2) good market position with a large installed UC base; (3) ongoing reductions in operating and capital expenditures; and (4) good liquidity. Mitel has good liquidity. Pro-forma for the two "uptiering" transactions, sources of liquidity are around $245 million until year-end 2023, while it has no debt maturities in this timeframe. Sources include about $120 million of cash (June 30, 2022), full availability under the $65 million superpriority revolving credit facility and Moody's expectation of about $60 million free cash flow generation. Moody's expects that the company will be in compliance with its net priority secured leverage covenant over the next four quarters. The company has limited ability to generate liquidity from asset sales as its assets are encumbered and not readily divisible. The stable outlook reflects Moody's expectation that Mitel will maintain adequate liquidity over the next 12-18 months as it works toward migrating its UCaaS customers to RingCentral. Mitel has five classes of debt: (1) B2 rated superpriority debt - $156 million superpriority term loan due October 2027 and $65 million superpriority revolving credit facility due November 2025; (2) Caa3 rated $575 million second out term loan due October 2027; (3) Ca rated $124 million third out term loan due October 2027; (4) Ca rated $1,120 million (face amount, $281 million outstanding) existing first lien secured term loan due November 2025; and (5) Ca rated $260 million (face amount, $108 million outstanding) existing second lien term loan due November 2026. The CFR is one notch below the PDR based on Moody's estimated 35% recovery rate. The B2 rating on the superpriority debt is four notches above the CFR to reflect its priority ranking in the debt structure. The Caa3 rating on the second out term loan is the same as the CFR, whereas the Ca rating on the third out term loan, existing first lien term loan, and existing second lien term loan are one notch below the CFR to reflect their junior ranking relative to all the other debt in the capital structure. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Mitel's ratings could be downgraded if liquidity further erodes or if Moody's determines that it is unlikely that Mitel can repay or refinance its debt in a timely manner. The company's ratings could be upgraded if Mitel materially reduces debt using the migration payments such that company's capital structure can be sustained with the remaining UC business. The principal methodology used in these ratings was Diversified Technology published in February 2022. Mitel, headquartered in Ottawa, Canada, provides phone systems, collaboration applications (voice, video calling, audio and web conferencing, instant messaging etc.) and contact center solutions through on-site and cloud offerings. The company's customer focus is on small and medium sized businesses. Mitel is majority-owned by Searchlight Capital Partners, a private equity firm. Revenue was about $900 million for LTM June-2022. NATURALSHRIMP INC: Posts $24.5 Million Net Loss in Second Quarter ----------------------------------------------------------------- Naturalshrimp Incorporated has filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $24.53 million on $51,725 of sales for the three months ended Sept. 30, 2022, compared to a net loss of $2.85 million on zero sales for the three months ended Sept. 30, 2021. For the six months ended Sept. 30, 2022, the Company reported a net loss of $26.73 million on $88,061 of sales compared to a net loss of $5.41 million on zero sales for the six months ended Sept. 30, 2021. As of Sept. 30, 2022, the Company had $37.01 million in total assets, $50.80 million in total liabilities, $1.78 million in Series E redeemable convertible preferred stock, $43.61 million in series F redeemable convertible preferred stock, and a total stockholders' deficit of $59.18 million. The Company has accumulated losses through the period to Sept. 30, 2022 of approximately $177,927,000 as well as negative cash flows from operating activities of approximately $3,631,000. NaturalShrimp stated, "Presently, the Company does not have sufficient cash resources to meet its plans in the twelve months following the date of issuance of this filing. These factors raise substantial doubt about the Company's ability to continue as a going concern. Management is in the process of evaluating various financing alternatives in order to finance the continued build-out of our equipment and for general and administrative expenses. These alternatives include raising funds through public or private equity markets and either through institutional or retail investors. Although there is no assurance that the Company will be successful with our fund-raising initiatives, management believes that the Company will be able to secure the necessary financing as a result of ongoing financing discussions with third party investors and existing shareholders." A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1465470/000149315222031945/form10-q.htm 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. NORTHWEST SENIOR: Plan Sponsors Set Bid Procedures for All Assets ----------------------------------------------------------------- UMB Bank, N.A., in its capacity as successor bond trustee and master trustee for the Original Bonds and in its capacity as a lender under the DIP Credit Agreement, seeks approval from the U.S. Bankruptcy Court for the Northern District of Texas of proposed bidding procedures in connection with the sale of substantially all assets of Northwest Senior Housing Corp. and affiliates to Bay 9 Holdings LLC or its designee for $48.5 million in cash plus certain assumed liabilities, subject to certain adjustments, and the assumption of the Assumed Liabilities, subject to overbid. The Plan proposed by the Plan Sponsors (the Trustee and the DIP Lender) represents the best possible path to maximizing the value of the Debtors' assets for the benefit of all stakeholders. The Plan will ensure the ongoing viability of the Edgemere Community such that it can successfully operate for the remainder of the Ground Lease term and meet Resident expectations with respect to quality of service and care. To accomplish this goal, the Plan will implement the Sale Transaction, pursuant to which the Purchased Assets and remaining assets of the Estates will be transferred to a Litigation Trust to be liquidated for the benefit of, and distributed to, creditors. The Plan Sponsors have selected an initial Purchaser, the Stalking Horse Bidder, as a starting point towards maximizing the value of the Debtors’ estates. The Stalking Horse Bidder's offer will be subject to higher and better bids, including through a potential auction. The Plan Sponsors and the Stalking Horse Bidder have negotiated the terms of an Asset Purchase Agreement (Exhibit 2). The Plan Sponsors believe that the Stalking Horse APA represents the fair market value for the Purchased Assets. Nevertheless, they are hopeful that there will be an auction which may result in overbids, and therefore even more value to the Debtors' estates. The Plan Sponsors submit that the best test of the value of the Debtors' assets is to determine what the market will bear through an open sale process. By approving the designation of the Stalking Horse Bidder and the sale process described and in the Bidding Procedures, the Court will ensure that the value of the Purchased Assets will be maximized and market-tested. By the Motion, the Plan Sponsors respectfully request the (a) authorization and approval of the Bidding Procedures, including approval of the Stalking Horse APA, (b) the approval of the notices relating to the Sale Transaction, including regarding assumption of any non-resident contracts, and (c) scheduling the hearing to consider approval of the Sale Transaction to occur in connection with the hearing to consider approval of the Plan. It is critical that the sale process be consummated on the timeline set forth in the Bidding Procedures and in the Motion. In recognition of the fact that the Debtors' postpetition financing matures on Dec. 31, 2022 and that it is imperative that a plan of reorganization is consummated as quickly as possible, the Debtors and the Plan Sponsors, with the Court's blessing, agreed to a plan confirmation timeline that serves as the framework for the sale timeline. The sale timeline has been designed to ensure adequate time for a marketing process while preserving and maximizing the value of the Debtors' estates for the benefit of all stakeholders, including the Residents. A hearing on the Motion is set for Nov. 30, 2022, at 1:30 p.m. (CT). The salient terms of the APA are: a. Consideration: $48.5 million in cash, subject to certain adjustments, and the assumption of the Assumed Liabilities, free and clear of all Encumbrances and Liens b. The Stalking Horse has agreed to deposit $2,425,000 in cash with UMB Bank, N.A. as the Escrow Agent. c. $1.5 million of the Purchase Price will be deposited into an escrow account with an independent escrow agent to reimburse the Stalking Horse Bidder for any amounts subject to Medicare payor recoupment or setoff against the Stalking Horse Bidder's post- Closing Accounts Receivable, but related to pre-Closing overpayments on Accounts Receivable made to the Seller. d. Bid Protections: Break-up Fee - $1,455,000; Expense Reimbursement - $200,000 e. The Debtors will reject all Residency Agreements, and the Stalking Horse Bidder will offer all Current Residents at the Edgemere Community the option to enter into a new monthly rental agreement which will provide similar services to each Current Resident as offered by the Debtors prior to Closing, at the then current private pay rate as advertised by the Debtors, subject to ordinary market adjustments. f. The Debtors will assume and assign the Ground Lease to the Stalking Horse Bidder, and sets forth a notice process pursuant to which the Landlord and other counterparties to unexpired leases and executory contracts may object to proposed cure amounts and adequate protection. g. Closing: 10 days after all of the conditions to Closing set forth in Article VI are either satisfied or waived (other than conditions which, by their nature, are to be satisfied on the Closing Date), but in no event later than 45 days after the entry of the Confirmation Order The salient terms of the Bidding Procedures are: a. Bid Deadline: Dec. 27, 2022, at 4:00 p.m. b. Initial Bid: At least $48.5 million plus the amount of the Break Up Fee, plus the amount of the Expense Reimbursement, plus $100,000 c. Deposit: 5% of the Bidder's proposed cash purchase price d. Auction: If any Bid (other than the Stalking Horse Bid) received by the Bid Deadline is determined to be a Qualified Bid, the Plan Sponsors will hold an Auction in accordance with the Bidding Procedures on Dec. 28, 2022 at 10:00 a.m. at the offices of the Plan Sponsors’ counsel, Haynes & Boone LLP, 2323 Victory Avenue, Suite 700 Dallas, TX 75219 or such other location as may be announced prior to the Auction to the Auction Participants. e. Bid Increments: In advance of the Auction and after a review of the Qualified Bids received, the Plan Sponsors, in consultation with the Consultation Parties, will determine the increments of any Overbid after the Auction Baseline Bid. f. Sale Hearing: Jan. 10, 2023, at 9:30 a.m. g. Sale Objection Deadline: Jan. 3, 2023, at 4:00 p.m. Pursuant to the Plan, any of the Debtors' Executory Contracts or Unexpired Leases to be assumed under the Sale Transaction that are, or may be, alleged to be in default, will be satisfied solely by cure or by a waiver of cure agreed upon between the Purchaser and the applicable counterparty. The Cure Objection Deadline is Dec. 19, 2022, at 4:00 p.m. (CT). A copy of the Stalking Horse APA is available at https://tinyurl.com/mr3vv8ba from PacerMonitor.com free of charge. About Northwest Senior Housing Corp. Northwest Senior Housing Corporation, doing business as Edgemere, is a Texas non-profit corporation and is exempt from federal income taxation as a charitable organization described under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended. Northwest Senior Housing Corporation was formed for the purpose of developing, owning and operating a senior living community now known as Edgemere. Northwest Senior Housing Corporation and its affiliates sought Chapter 11 bankruptcy protection (Bankr. N.D. Tex. Lead Case No. 22-30659) on April 14, 2022. The petitions were signed by Nick Harshfield, treasurer. At the time of the filing, Northwest Senior Housing listed $100 million to $500 million in both assets and liabilities. Judge Michelle V. Larson oversees the cases. Polsinelli, PC and FTI Consulting Inc. serve as the Debtors' legal counsel and business advisor, respectively. Kurtzman Carson Consultants, LLC, is the Debtors' notice, claims and balloting agent and administrative advisor. Jezerinac Group, PLLC is tapped to provide expert and litigation support services. The Official Committee of Unsecured Creditors tapped Foley & Lardner LLP as counsel, and Ankura Consulting Group, LLC, as financial advisor. NUTEX HEALTH: Lincoln Park Commits to Buy $100M Worth of Shares --------------------------------------------------------------- Nutex Health Inc. announced a common stock purchase agreement for a commitment to purchase up to $100 million worth of shares of its common stock with Lincoln Park Capital Fund, LLC, a Chicago-based institutional investor. On Nov. 14, 2022, Nutex Health and Lincoln Park Capital Fund, LLC entered into a purchase agreement and registration rights agreement pursuant to which Nutex Health will have the right, in its sole discretion, but not the obligation, to sell to Lincoln Park up to $100 million worth of shares of its common stock over the 36-month term of the Agreement, subject to terms and conditions as provided in the Agreement, including the filing and effectiveness of a registration statement. Nutex Health controls the timing and amount of any future sales of its shares of common stock and Lincoln Park is obligated to make purchases in accordance with the Agreement, subject to various limitations including those under the Nasdaq listing rules. Any common stock sold by Nutex Health to Lincoln Park can be sold pursuant to Regular Purchases and Accelerated Purchases, as defined in the Agreement, at purchase prices based on prevailing market prices at the time of each sale and at 97% of the market price on the date of sale under Accelerated Purchases. There is no upper limit to the price per share that Lincoln Park may pay for future stock issuances under the Agreement, and Lincoln Park has agreed not to cause or engage in any direct or indirect short selling or hedging of Nutex Health's common stock. No warrants are being issued in this transaction and the Agreement does not contain any rights of first refusal, participation rights, penalties, or liquidated damages provisions in favor of any party. Nutex Health may terminate the Agreement at any time, at its sole discretion, without any cost or penalty. In connection with the Agreement, Nutex has agreed to file a registration statement with the U.S. Securities and Exchange Commission registering the resale of the shares issued to Lincoln Park . Nutex Health intends to use the net proceeds from the sale of its common stock under the Agreement for working capital and general corporate purposes to support its growth. About Nutex Headquartered in Houston, Texas and founded in 2011, Nutex Health, Inc. is a healthcare services company with approximately 1500 employees nationwide and is partnered with over 800 physicians. The Company has two divisions: a Hospital division and a Population Health Management division. The Hospital division owns and operates 21 facilities in eight different states. The division implements and operates different innovative health care models, including micro hospitals, specialty hospitals and hospital outpatient departments (HOPDs). The Population Health Management division owns and operates provider networks such as Independent Physician Associations (IPAs). Through its Management Services Organizations (MSOs), the Company provides management, administrative and other support services to its affiliated hospitals and physician groups. The Company's cloud-based proprietary technology platform aggregates clinical and claims data across multiple settings, information systems and sources to create a holistic view of patients and providers. Nutex reported a net loss of $13.67 million for the year ended Dec. 31, 2021, a net loss of $5.65 million for the year ended Dec. 31, 2020, and a net loss of $7.12 million for the year ended Dec. 31, 2019. As of June 30, 2022, the Company had $871.79 million in total assets, $305.38 million in total liabilities, and $566.41 million in total equity. NUTEX HEALTH: Reports Third Quarter Net Loss of $422.5 Million -------------------------------------------------------------- Nutex Health Inc. has filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss attributable to the company of $422.52 million on $28.39 million of total revenue for the three months ended Sept. 30, 2022, compared to a net income attributable to the company of $53.79 million on $117.97 million 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 attributable to the company of $420.36 million on $165.57 million of total revenue compared to a net income attributable to the company of $118.61 million on $268.13 million of total revenue for the same period during the prior year. As of Sept. 30, 2022, the Company had $434.52 million in total assets, $301.99 million in total liabilities, and $132.53 million in total equity. "Our results in the 3rd quarter were affected by a significant non-cash goodwill impairment charge as well as challenging operating dynamics that include lower net revenue per patient visit and lower patient volumes due to fewer Covid-related visits," stated Jon Bates, chief financial officer of Nutex Health. "We have many initiatives underway intended to increase net revenue per patient and to increase patient volumes," stated Tom Vo, M.D., MBA, chairman and chief executive officer of Nutex Health. "These include: * maximizing our claims coding efficiency, * increasing efforts to collect co-pays and co-insurance, * adding additional administrative staff to handle the increased administrative IDR burden * having a dedicated IDR team to accelerate resubmission of claims under the IDR process, * making appeals for additional payment of claims for periods before and after the NSA final rule was adopted through the IDR process, * making efforts to sign favorable contracts with insurers, and * working with both local and national legislatures to enforce the NSA rules and guidelines for Insurers. "We are also accelerating contracting with local physicians to join our IPAs and increasing our marketing efforts to increase patient volumes." "At the same time, we are intensely focused on executing on our long-term growth strategy. We are thrilled to announce the agreement with Lincoln Park Capital. The committed investment agreement for up to $100 million will provide us with the flexibility to address future growth opportunities," stated Warren Hosseinion, M.D., president of Nutex Health. A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1479681/000160706222000727/nutx093022form10q.htm About Nutex Headquartered in Houston, Texas and founded in 2011, Nutex Health, Inc. is a healthcare services company with approximately 1500 employees nationwide and is partnered with over 800 physicians. The Company has two divisions: a Hospital division and a Population Health Management division. The Hospital division owns and operates 21 facilities in eight different states. The division implements and operates different innovative health care models, including micro hospitals, specialty hospitals and hospital outpatient departments (HOPDs). The Population Health Management division owns and operates provider networks such as Independent Physician Associations (IPAs). Through its Management Services Organizations (MSOs), the Company provides management, administrative and other support services to its affiliated hospitals and physician groups. The Company's cloud-based proprietary technology platform aggregates clinical and claims data across multiple settings, information systems and sources to create a holistic view of patients and providers. Nutex reported a net loss of $13.67 million for the year ended Dec. 31, 2021, a net loss of $5.65 million for the year ended Dec. 31, 2020, and a net loss of $7.12 million for the year ended Dec. 31, 2019. As of June 30, 2022, the Company had $871.79 million in total assets, $305.38 million in total liabilities, and $566.41 million in total equity. PACIFIC GREEN: Incurs $2.2 Million Net Loss in Second Quarter ------------------------------------------------------------- Pacific Green Technologies Inc. has filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $2.24 million on $1.19 million of total revenues for the three months ended Sept. 30, 2022, compared to a net loss of $4.36 million on $138,536 of total revenues for the three months ended Sept. 30, 2021. For the six months ended Sept. 30, 2022, the Company reported a net loss of $5.50 million on $3.22 million of total revenues compared to a net loss of $7.62 million on $1.46 million of total revenues for the same period in 2021. As of Sept. 30, 2022, the Company had $37.62 million in total assets, $18.22 million in total liabilities, and $19.39 million in total equity. As of Sept. 30, 2022, the Company had $3,025,506 in cash and cash equivalents, $9,367,678 in total current assets, $17,043,040 in total current liabilities and a working capital deficit of $7,675,362 compared to working capital of $5,774,993 as at March 31, 2022. The Company's working capital reduced due to reduction of receivables. During the six months ended Sept. 30, 2022, the Company used $4,870,482 in operating activities, whereas the Company used $7,360,689 from operating activities for the three months period ended Sept. 30, 2021. The operating cash flow for the six months ended Sept. 30, 2022, was mainly resulted from increased sales and collection of payments. During the six months ended Sept. 30, 2022, the Company used $15,325,769 in investing activities, whereas the Company used $264,839 in investing activities during the three months ended Sept. 30, 2021. The Company's investing activities for the three months ended Sept. 30, 2022, were primarily related to additions of project under development and equipment. During the six months ended Sept. 30, 2021, the Company received $17,834,507 in financing activities, whereas the Company received $250 in financing activities for the six months ended Sept. 30, 2020. The Company's financing activities for the six months ended Sept. 30, 2022, were related to cash contribution from noncontrolling interest. A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1553404/000121390022074150/f10q0922_pacificgreen.htm About Pacific Green Technologies Pacific Green Technologies, Inc. is focused on addressing the world's need for cleaner and more sustainable energy. The Company offers Battery Energy Storage Systems and Concentrated Solar Power energy solutions to compliment its marine environmental technologies division. Pacific Green reported a net loss of $10.75 million for the year ended March 31, 2022, compared to a net loss of $1.81 million for the year ended March 31, 2021, and a net loss of $10.38 million for the year ended March 31, 2020. As of June 30, 2022, the Company had $32.03 million in total assets, $16.34 million in total liabilities, and $15.68 million in total equity. PARRIS DEVELOPMENT: Voluntary Chapter 11 Case Summary ----------------------------------------------------- Debtor: Parris Development Projects LLC 222 Main St. West Orange NJ 07052 Case No.: 22-19412 Business Description: The Debtor is engaged in activities related to real estate. Chapter 11 Petition Date: November 29, 2022 Court: United States Bankruptcy Court District of New Jersey Debtor's Counsel: Philip Guarino, Esq. GUARINO & CO LAW FIRM 300 Main St, Suite 552 Madison, NJ 07940 Tel: 473-615-1791 Email: guarinolaw@gmail.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Lester Parris as member. 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/HTDKOZQ/Parris_Development_Projects_LLC__njbke-22-19412__0001.0.pdf?mcid=tGE4TAMA PG&E CORP: Wildfire Victims Want Bankruptcy Judge Removed --------------------------------------------------------- Brandon Rittiman of ABC 10 reports that wildfire victims have filed a motion to remove the bankruptcy judge handling the bankruptcy case of PG&E Corporation, citing frustration over delayed payments as well as the lack of transparency for the thousands of wildfire victims. "A reasonable person with knowledge of the facts would question Judge [Dennis] Montali's impartiality within this case," 2017 Tubbs Fire survivor Will Abrams wrote in court documents, calling for the judge to be replaced "as soon as practicable," according to the report. According to the report, thousands of survivors received little or nothing from the Fire Victim Trust, an entity created by the bankruptcy deal to assume the liability damages that PG&E owed. As of its most recent report, about 17,000 out of 68,000 fire victims had yet to receive any money from the Fire Victim Trust. More than 8,000 victims haven’t even been told the size of their settlements. The report relates Abrams, who is not a lawyer, drafted the formal motion asking for Montali's recusal from the case. He accuses Judge Montali of failing to disclose a longtime relationship with a pair of fire victims to whom he gave special rights in the bankruptcy. The report notes that, of the nearly 70,000 PG&E fire victims, Montali awarded only five the right to "reject" the trust's settlement offers. Two of them had a history with Judge Montali, having both hosted him in 2005 for "a delightful evening of wine tasting" during a Bay Area networking event for bankruptcy professionals. "All judges must be free of even an appearance of impropriety," said former CPUC president Loretta Lynch, who was not involved in crafting Abrams' motion, according to the report. "Mr. Abram's information makes it clear that Judge Montali should recuse himself from any oversight or involvement in the PG&E bankruptcy bailout over which he presided," she added. "I am very concerned about how victims have been treated within this case," Abrams said. "And the amount of critical information that has been kept away from them, so that other parties can advance their own financial interests." Asked to comment, Judge Montali's staff told ABC10 that he "is not permitted to comment on a pending case before him." Judge Montali also presided over PG&E's previous bankruptcy case after the early 2000s energy crisis. About PG&E Corporation PG&E Corporation (NYSE: PCG) -- http://www.pgecorp.com/-- is a Fortune 200 energy-based holding company, headquartered in San Francisco. It is the parent company of Pacific Gas and Electric Company, an energy company that serves 16 million Californians across a 70,000-square-mile service area in Northern and Central California. PG&E Corporation and its regulated utility subsidiary, Pacific Gas and Electric Company, faced extraordinary challenges relating to a series of catastrophic wildfires that occurred in Northern California in 2017 and 2018. The utility faced an estimated $30 billion in potential liability damages from California's deadliest wildfires of 2017 and 2018. On Jan. 29, 2019, PG&E Corp. and its primary operating subsidiary, Pacific Gas and Electric Company, filed voluntary Chapter 11 petitions (Bankr. N.D. Cal. Lead Case No. 19-30088). As of Sept. 30, 2018, the Debtors, on a consolidated basis, had reported $71.4 billion in assets on a book value basis and $51.7 billion in liabilities on a book value basis. Weil, Gotshal & Manges LLP and Cravath, Swaine & Moore LLP served as PG&E's legal counsel, Lazard as its investment banker and AlixPartners, LLP as the restructuring advisor to PG&E. Prime Clerk LLC served as the claims and noticing agent. PG&E has appointed James A. Mesterharm, a managing director at AlixPartners, LLP, and an authorized representative of AP Services, LLC, to serve as Chief Restructuring Officer. In addition, PG&E appointed John Boken also a Managing Director at AlixPartners and an authorized representative of APS, to serve as Deputy Chief Restructuring Officer. Morrison & Foerster LLP served as the Debtors' special regulatory counsel. Munger Tolles & Olson LLP also served as special counsel. The Office of the U.S. Trustee appointed an official committee of creditors on Feb. 12, 2019. The Committee retained Milbank LLP as counsel; FTI Consulting, Inc., as financial advisor; Centerview Partners LLC as investment banker; and Epiq Corporate Restructuring, LLC as claims and noticing agent. On Feb. 15, 2019, the U.S. trustee appointed an official committee of tort claimants. The tort claimants' committee is represented by Baker & Hostetler LLP. * * * PG&E Corporation and Pacific Gas and Electric Company announced July 1, 2020, their emergence from Chapter 11, successfully completing the restructuring process and implementing PG&E's Plan of Reorganization that the Bankruptcy Court confirmed on June 20, 2020. For the benefit of fire victims, the Plan provided for a Fire Victim Trust, which was funded with an oft-stated value of $13.5 billion, to be half in cash and half in new company PG&E common stock. The $6.75 billion in cash was paid. With respect to the stock consideration, 478 million shares of PG&E stock were delivered to the Fire Victim Trust in accordance with an agreed-to formula under the Plan. PHUNWARE INC: Appoints Russ Buyse as CEO ---------------------------------------- Phunware, Inc. has hired Russ Buyse as the Company's chief executive officer, effective Dec. 28, 2022. "I am thrilled to join Phunware, bringing my experience in mobile software, data, and identity at such an important time in the Company's trajectory," said Russ Buyse, chief executive officer of Phunware. "I look forward to working with the phenomenal people at Phunware to maximize shareholder value by scaling industry-leading solutions to reimagine how brands engage their customers." Prior to joining Phunware, Russ Buyse spent the past two decades in both product and services companies, from startups to enterprises, leading teams to create innovative solutions. He founded two companies, served as an executive in six others, and was an Entrepreneur in Residence at a venture capital firm. Most recently, Russ served as chief operating officer of GlobaliD, a digital identity platform dedicated to providing consumers with a self-sovereign identity they can use to communicate, transact and create value within any context. In addition to digital identity, Russ has extensive experience in mobile software and data management. He holds a Bachelor's degree in Computer Science from the University of Texas at Austin. "Phunware is at an inflection point and Russ brings exactly the right background to help us successfully transition from operating as a tech-enabled systems integrator to scaling as a true enterprise integration platform as a service," said Randall Crowder, chief operating officer of Phunware. "His experience in mobile and data will help us further commercialize our ability to deliver tech-enabled contextual engagement in a mobile-first world and his understanding of digital identity will be invaluable as we look to commercialize a decentralized data economy built on first-party data where consumers manage consent." On Nov. 17, 2022, the Board appointed Mr. Buyse to serve as a director on the Company's Board effective as of Nov. 21, 2022, to fill the vacancy on the Board created by the resignation of Randall Crowder, to serve on the Board as a Class III director until the 2024 annual meeting of stockholders or until his successor is duly elected and qualified or until the earlier of his death, resignation or removal. Mr. Buyse will receive a one-time payment of $6,000, less applicable taxes, for his service on the Board from Nov. 21, 2022 until his Employment Start Date. Subsequent to his Employment Start Date, Mr. Buyse will not receive any additional compensation for his service on the Board. About Phunware Headquartered in Austin, Texas, Phunware, Inc. -- http://www.phunware.com-- offers a fully integrated software platform that equips companies with the products, solutions and services necessary to engage, manage and monetize their mobile application portfolios globally at scale. Phunware reported a net loss of $53.52 million for the year ended Dec. 31, 2021, a net loss of $22.20 million for the year ended Dec. 31, 2020, a net loss of $12.87 million for the year ended Dec. 31, 2019, and a net loss of $9.80 million for the year ended Dec. 31, 2018. As of Sept. 30, 2022, the Company had $68.48 million in total assets, $35.70 million in total liabilities, and $32.78 million in total stockholders' equity. PIPELINE HEALTHCARE: To Sell Two Chicago Hospitals for $92 Million ------------------------------------------------------------------ James Nani of Bloomberg Law reports that Pipeline Health System LLC intends to sell two of its Chicago-area hospitals to AUM Global Healthcare Management for $92 million. According to the report, the deal includes $5 million in equity proceeds from Ramco Healthcare Holdings, an AUM affiliate. Pipeline will also get $20 million loan from Ramco and a $67 million note issued by Ramco. The report notes Pipeline had planned to sell the hospitals to AUM earlier this year but the deal was not finalized before it filed for Chapter 11 in October. About Pipeline Health System Pipeline Health System LLC -- https://www.pipelinehealth.us -- is an independent healthcare network proudly delivering quality and accessible care for the communities it serves. Headquartered in El Segundo, California, Pipeline's operations include seven "safety net" hospitals, three health clinics, and three medical group centers across California, Texas, and Illinois, with approximately 310 physicians and over 1,150 beds to serve patients, and a company-wide workforce of over 4,200. These hospitals include Weiss Memorial Hospital and West Suburban Medical Center in Chicago; White Rock Medical Center in Dallas; and four hospitals in the Los Angeles area - Memorial Hospital of Gardena, Coast Plaza Hospital, Community Hospital of Huntington Park, and East Los Angeles Doctors Hospital. Pipeline Health System LLC and 32 affiliates sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 22-90291) on Oct. 2, 2022. In the petition filed by Andrei Soran, as authorized signatory, Pipeline Health reported assets and liabilities between $500 million and $1 billion. The Hon. David R. Jones is the case judge. The Debtors tapped Kirkland & Ellis, LLP as general bankruptcy counsel; Jackson Walker, LLP as local bankruptcy counsel; Ankura Consulting Group, LLC as restructuring advisor; and Jefferies, LLC, as financial advisor and investment banker. Epiq Corporate Restructuring, LLC, is the claims agent. The Debtor hired Duane Morris, LLP as special counsel, in connection with the sale of their Illinois assets to AUM Global Healthcare Management, LLC and Ramco Healthcare Holdings, LLC. An official committee of unsecured creditors was appointed in the case. The committee retained Akin Gump Strauss Hauer & Feld LLP as its counsel. PRESSURE BIOSCIENCES: Posts $4.5 Million Net Loss in Third Quarter ------------------------------------------------------------------ Pressure Biosciences, Inc. has filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $4.46 million on $144,032 of total revenue for the three months ended Sept. 30, 2022, compared to a net loss of $4.95 million on $518,365 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 $11.62 million on $1.12 million of total revenue compared to a net loss of $16.27 million on $1.69 million of total revenue for the same period during the prior year. As of Sept. 30, 2022, the Company had $2.84 million in total assets, $32.61 million in total liabilities, and a total stockholders' deficit of $29.77 million. Pressure Biosciences stated, "[W]e have experienced losses from operations and negative cash flows from operations with respect to our pressure cycling technology business since our inception. As of September 30, 2022, we do not have adequate working capital resources to satisfy our current liabilities and as a result, there is substantial doubt regarding our ability to continue as a going concern. We have been successful in raising debt and equity capital in the past...In addition we raised debt and equity capital after September 30, 2022...We have financing efforts in place to continue to raise cash through debt and equity offerings. Although we have successfully completed financings and reduced expenses in the past, we cannot assure you that our plans to address these matters in the future will be successful. These financial statements do not include any adjustments that might result from this uncertainty." A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/830656/000149315222033176/form10-q.htm About Pressure Biosciences South Easton, Mass.-based, Pressure Biosciences Inc. -- http://www.pressurebiosciences.com-- develops and sells innovative, broadly enabling, high pressure-based platform technologies and related consumables for the worldwide life sciences, agriculture, food and beverage, and other key industries. Pressure Biosciences reported a net loss of $20.15 million for the year ended Dec. 31, 2021, compared to a net loss of $16.01 million for the year ended Dec. 31, 2020. As of June 30, 2022, the Company had $2.89 million in total assets, $30.10 million in total liabilities, and a total stockholders' deficit of $27.21 million. Houston, Texas-based MaloneBailey, LLP, the Company's auditor since 2015, issued a "going concern" qualification in its report dated April 4, 2022, citing that the Company has a working capital deficit, has incurred recurring net losses and negative cash flows from operations. These conditions raise substantial doubt about its ability to continue as a going concern. RAGSTER INVESTMENT: Wins Interim Cash Collateral Access ------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Texas, Fort Worth Division, authorized Ragster Investment Group, Inc. to use cash collateral on an interim basis in accordance with the budget. The Debtor has an immediate need to use the cash collateral of VFS US, LLC, Sumitomo Mitsui Finance & Leasing Co., Ltd., BMO Harris Bank, N.A., and Quantum 222 Trust, the secured creditors claiming liens on the Debtor's personal property including cash and accounts. The Secured Lenders are granted valid, binding, enforceable, and perfected liens co-extensive with the Secured Lenders' pre-petition liens in all currently owned or hereafter acquired property and assets of the Debtor. As adequate protection for the diminution in value of the interests of the Secured Lenders, the Secured Lenders are granted replacement liens and security interests, in accordance with Bankruptcy Code Sections 361, 363, 364(c)(2), 364(e), and 552, co-extensive with their pre-petition liens. The replacement liens granted to the Secured Lenders are automatically perfected without the need for filing of a UCC-1 financing statement with the Secretary of State's Office or any other such act of perfection. A further hearing on the matter is set for December 7, 2022 at 1:30 p.m. A copy of the order and the Debtor's budget is available at https://bit.ly/3Bhe1SD from PacerMonitor.com. The Debtor projects $100,000 in income for two weeks. About Ragster Investment Group, Inc. Ragster Investment Group, Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 22-42825) on November 22, 2022. In the petition signed by Timothy Ragster, chief executive officer, the Debtor disclosed up to $10 million in both assets and liabilities. Judge Edward L. Morris oversees the case. Joyce Lindauer, Esq., at JOYCE W. LINDAUER ATTORNEY, PLLC, is the Debtor's legal counsel. REGIONAL HEALTH: Incurs $371K Net Loss in Third Quarter ------------------------------------------------------- Regional Health Properties, Inc. has filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $371,000 on $11.03 million of total revenues for the three months ended Sept. 30, 2022, compared to a net loss of $39,000 on $6.70 million of total revenues for the three months ended Sept. 30, 2021. For the nine months ended Sept. 30, 2022, the Company reported a net loss of $4.62 million on $25.77 million of total revenues compared to a net loss of $521,000 on $20.25 million of total revenues for the nine months ended Sept. 30, 2021. As of Sept. 30, 2022, the Company had $95.42 million in total assets, $89.52 million in total liabilities, and $5.90 million in total stockholders' equity. Regional Health stated, "The Company intends to pursue measures to grow its operations, streamline its cost infrastructure and otherwise increase liquidity, including: (i) refinancing or repaying debt to reduce interest costs and mandatory principal repayments, with such repayment to be funded through potentially expanding borrowing arrangements with certain lenders; (ii) increasing future lease revenue through acquisitions and investments in existing properties; (iii) modifying the terms of existing leases; (iv) replacing certain tenants who default on their lease payment terms; and (v) reducing other and general and administrative expenses." A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1004724/000095017022025615/rhe-20220930.htm 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. RIOT BLOCKCHAIN: Stockholders Approve Increase in Authorized Shares ------------------------------------------------------------------- Riot Blockchain, Inc. held a special meeting to ask stockholders to approve an amendment to the Articles of Incorporation of the Company with the Secretary of State of the State of Nevada to increase the number of authorized shares of its common stock, no par value per share, from 170 million shares to 340 million shares. At the Special Meeting, the Company's stockholders approved the proposal. As disclosed in the Definitive Proxy Statement filed with the U.S. Securities and Exchange Commission on Oct. 3, 2022, the Board fixed Sept. 29, 2022, as the record date for the Special Meeting and, pursuant to the Company's Bylaws, only those shares issued and outstanding as of the Record Date were eligible to participate in and vote at the Special Meeting. As of the close of business on the Record Date, there were 167,136,619 shares entitled to vote at the Special Meeting. About Riot Blockchain Headquartered in Castle Rock, Colorado, Riot Blockchain, Inc. -- http://www.RiotBlockchain.com-- specializes in cryptocurrency mining with a focus on bitcoin. The Company is expanding and upgrading its mining operations by securing the most energy efficient miners currently available. Riot is headquartered in Castle Rock, Colorado, and the Company's mining facility operates out of upstate New York, under a co-location hosting agreement with Coinmint. Riot Blockchain reported a net loss of $7.93 million for the year ended Dec. 31, 2021, a net loss of $12.67 million for the year ended Dec. 31, 2020, a net loss of $20.30 million for the year ended Dec. 31, 2019, and a net loss of $60.21 million for the year ended Dec. 31, 2018. As of Sept. 30, 2022, the Company had $1.45 billion in total assets, $154.25 million in total liabilities, and $1.30 billion in total stockholders' equity. ROYALE ENERGY: Incurs $426K Net Loss in Third Quarter ----------------------------------------------------- Royale Energy, Inc. has filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $426,331 on $549,818 of total revenues for the three months ended Sept. 30, 2022, compared to a net loss of $982,328 on $432,589 of total revenues for the three months ended Sept. 30, 2021. For the nine months ended Sept. 30, 2022, the Company reported a net loss of $739,184 on $1.75 million of total revenues compared to a net loss of $2.58 million on $1.23 million of total revenues for the nine months ended Sept. 30, 2021. As of Sept. 30, 2022, the Company had $12.95 million in total assets, $23.07 million in total liabilities, $23.40 million in mezzanine equity, and a total stockholders' deficit of $33.52 million. Liquidity and Going Concern Royale Energy said, "The primary sources of liquidity have historically been issuances of common stock, oil and gas sales through ongoing operations and the sale of oil and gas properties. There are factors that give rise to substantial doubt about the Company's ability to meet liquidity demands, and we anticipate that our primary sources of liquidity will be from the issuance of debt and/or equity, the sale of oil and natural gas property participation interests through our normal course of business and the sale of non-strategic assets. "At September 30, 2022, the Company's consolidated financial statements reflect a working capital deficiency of $7,094,594 and a net loss of $739,184 for the nine months ended September 30, 2022. These factors raise substantial doubt about our ability to continue as a going concern. "Management's plans to alleviate the going concern by cost control measures that include the reduction of overhead costs and the sale of non-strategic assets. There is no assurance that additional financing will be available when needed or that management will be able to obtain any financing on terms acceptable to the Company and whether the Company will become profitable and generate positive operating cash flow. If the Company is unable to raise sufficient additional funds, it will have to develop and implement a plan to further extend payables, attempt to extend note repayments, and reduce overhead until sufficient additional capital is raised to support further operations. There can be no assurance that such a plan will be successful." A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1694617/000118518522001324/royaleinc20220930_10q.htm About Royale El Cajon, CA-based Royale Energy, Inc. -- http://www.royl.com-- is an independent oil and natural gas producer incorporated under the laws of Delaware. Royale's principal lines of business are the production and sale of oil and natural gas, acquisition of oil and gas lease interests and proved reserves, drilling of both exploratory and development wells, and sales of fractional working interests in wells to be drilled by Royale. Royale was incorporated in Delaware in 2017 and is the successor by merger to Royale Energy Funds, Inc., a California corporation formed in 1983. Royale Energy reported a net loss of $3.60 million for the year ended Dec. 31, 2021, compared to a net loss of $8.15 million for the year ended Dec. 31, 2020. As of June 30, 2022, the Company had $11.36 million in total assets, $21.30 million in total liabilities, $23.20 million in convertible preferred stock, and a total stockholders' deficit of $33.15 million. Dallas, Texas-based Weaver and Tidwell, LLP, the Company's auditor since 2021, issued a "going concern" qualification in its report dated April 15, 2022, citing that the Company has suffered recurring losses from operations and has a net capital deficiency that raise substantial doubt about its ability to continue as a going concern. ROYALE ENERGY: Inks New Joint Development Deal in Permian Basin --------------------------------------------------------------- Royale Energy, Inc., said it has executed a Joint Development Agreement with Ares Energy LTD for up to 25,000 acres in Ector and Andrews counties, Texas in the Permian Basin. This "Pradera Fuego Project" is a horizontal resource play in the Mississippian interval. The JDA provides Royale Energy a 5% working interest in this project. Phase 1, initially covering 6900 net acres, is projected to have 12 to 15 drillable locations. This ownership began with the second well drilled in this project. OPERATIONS There have been three wells drilled to date on this acreage. The first well, "Sweet Melissa 1H", was drilled before Royale agreed to participate in the JDA, demonstrated a 30-day peak average production rate of 730 BOPD & 1.1 MMcf/d with expected reserves exceeding 1,200,000 barrels of oil equivalent. The next two wells, "Anna 1H" and "Abby Unit 1H", are included in the JDA. These have been drilled efficiently, without complication, to their intended target depth. The lateral lengths of the three wells drilled in this project are 10,155', 10,282' and 11,625' with the lateral length of the latter being the longest drilled by 358' out of the 65 Mississippian wells already drilled in this play. The longer the laterals lengths drilled in each well in most cases equates to increased reserves in that well. The completion operations for the second well are expected to start mid- December, and the third well in early 2023. Royale anticipates both wells to demonstrate production and reserves in line with the initial well drilled in the project. Improved efficiencies in drilling have significantly reduced the number of drill days by 59%. As used in this press release, "BOPD" means barrels of oil per day, "MMcf/d" means million cubic feet per day. FORECAST Royale anticipates participating in drilling six to eight additional wells in this project in 2023. About Royale El Cajon, CA-based Royale Energy, Inc. -- http://www.royl.com-- is an independent oil and natural gas producer incorporated under the laws of Delaware. Royale's principal lines of business are the production and sale of oil and natural gas, acquisition of oil and gas lease interests and proved reserves, drilling of both exploratory and development wells, and sales of fractional working interests in wells to be drilled by Royale. Royale was incorporated in Delaware in 2017 and is the successor by merger to Royale Energy Funds, Inc., a California corporation formed in 1983. Royale Energy reported a net loss of $3.60 million for the year ended Dec. 31, 2021, compared to a net loss of $8.15 million for the year ended Dec. 31, 2020. As of June 30, 2022, the Company had $11.36 million in total assets, $21.30 million in total liabilities, $23.20 million in convertible preferred stock, and a total stockholders' deficit of $33.15 million. Dallas, Texas-based Weaver and Tidwell, LLP, the Company's auditor since 2021, issued a "going concern" qualification in its report dated April 15, 2022, citing that the Company has suffered recurring losses from operations and has a net capital deficiency that raise substantial doubt about its ability to continue as a going concern. SENSITIVE HOME: Future Business Operations to Fund Plan ------------------------------------------------------- Sensitive Home Inc. filed with the U.S. Bankruptcy Court for the District of Delaware a Plan of Reorganization dated November 22, 2022. The Debtor produces and markets ecological, sustainable and better for you cleaning goods. It was founded by Stuart Chrisp and Grant Leach of Auckland, New Zealand, along with Alastair Dorward and Greg van Buskirk of the Bay Area in early 2020. The Debtor will continue to operate as a C corporation. All equity interests, including all options, warrants and conversion rights issued at any time by the Debtor, will be retained by the holders of the same, and will pass through the bankruptcy. Class 1 consists of the Secured Convertible Notes. The Debtor will pay the Secured Convertible Notes directly to the noteholders in keeping with their terms; all aspects of the same are preserved including the rights to interest, conversion and to the warrants provided thereby. Class 2 consists of the Subordinated Secured Notes. The Debtor will pay the noteholders subject to the Subordinated Secured Note directly their respective portion of the Allowed Secured Amount at the rate of 4%, together comprising the Total Claim. The payments will be made monthly and will commence after the allowed Fee Claims, are paid in full. These payments will be made pari passu with the payments made on the General Unsecured Claims. Class 3 consists of Priority unsecured Claims. Absent further Court order, holders of Claims that fail to file and serve a proof of Claim on or before the relevant bar date will be forever barred, estopped, and enjoined from asserting such Claims against the Debtor or its property. Class 4 consists of General Unsecured Claims. Allowed General Unsecured Claims will be paid the face value of their allowed claims within five years of the Effective Date. This Class is impaired. Class 5 consists of Critical Vendors. The Debtor will pay each of these Claims, if any, in accordance with the terms and conditions of the particular transaction giving rise to each such Claim. The Debtor's shareholders will retain their equity security interests without impairment, and the Debtor will continue to operate as a corporation. The Plan will be funded from the Debtor's cash flows stemming from the Debtor's future business operations. A full-text copy of the Plan of Reorganization dated November 22, 2022, is available at https://bit.ly/3EITHu9 from PacerMonitor.com at no charge. The Debtor's Counsel is: Mark M. Billion, Esq. 1073 s. Governors Ave. Dover, DE 19904 Tel: 302-428-9400 Email: markbillion@billionlaw.com About Sensitive Home Sensitive Home offers home cleaning products especially for those with skin, respiratory, and chemical sensitivities. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 22-11063) on November 10, 2022. In the petition signed by Stuart Dawson Chrisp, director, the Debtor disclosed $317,207 in assets and $1,333,593 in liabilities. Hon. John T. Dorsey oversees the case. Mark M. Billion, Esq. is the Debtor's Counsel. SINTX TECHNOLOGIES: Gets Another Noncompliance Notice From Nasdaq ----------------------------------------------------------------- SINTX Technologies, Inc. said it received on Nov. 17, 2022, a notice from the Listing Qualifications Staff of The Nasdaq Stock Market LLC indicating that, because the Company's bid price had closed below $0.10 per share for the preceding ten consecutive trading days, in contravention of Nasdaq Listing Rule 5810(3)(A)(iii), the Company's securities were subject to delisting unless the Company timely requested a hearing before the Nasdaq Hearings Panel. The Company timely requested a hearing before the Panel, which request stayed any further delisting action by Nasdaq at least pending the Company's hearing and the expiration of any extension that the Panel may grant to the Company following such hearing. Nasdaq previously granted the Company a 180-calendar grace period to regain compliance with the minimum $1.00 bid price requirement set forth in Nasdaq Listing Rule 5550(a)(2), through Jan. 2, 2023; however, the grace period was cut short due to the Company's non-compliance with the $0.10 Rule. At the Annual Shareholders Meeting scheduled for Dec. 15, 2022, the Company will seek shareholder approval for the implementation of a reverse stock split if deemed necessary and advisable and at the Board's discretion, to regain compliance with the Bid Price Rule. About SINTX Technologies Headquartered in Salt Lake City, Utah, SINTX Technologies, Inc. -- https://ir.sintx.com -- is an OEM ceramics company that develops and commercializes silicon nitride for medical and non-medical applications. The core strength of SINTX Technologies is the manufacturing, research, and development of silicon nitride ceramics for external partners. The Company presently manufactures advanced ceramics powders and components in its FDA registered, ISO 13485:2016 certified, and ASD9100D certified manufacturing facility. SINTX reported a net loss of $8.78 million for the year ended Dec. 31, 2021, a net loss of $7.03 million for the year ended Dec. 31, 2020, and a net loss of $4.79 million for the year ended Dec. 31, 2019. As of Sept. 30, 2022, the Company had $14.56 million in total assets, $5.15 million in total liabilities, and $9.41 million in total stockholders' equity. SONOMA PHARMACEUTICALS: Posts $1 Million Net Loss in Second Quarter ------------------------------------------------------------------- Sonoma Pharmaceuticals, Inc. has filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss of $1.02 million on $3.33 million of revenues for the three months ended Sept. 30, 2022, compared to a net loss of $100,000 on $3.74 million of revenues for the three months ended Sept. 30, 2021. For the nine months ended Sept. 30, 2022, the Company reported a net loss of $1.90 million on $7.31 million of revenues compared to a net loss of $1.20 million on $7.43 million of revenues for the nine months ended Sept. 30, 2021. As of Sept. 30, 2022, the Company had $14.96 million in total assets, $7.94 million in total liabilities, and $7.02 million in total stockholders' equity. At Sept. 30, 2022 and March 31, 2022, the Company's accumulated deficit amounted to $186,267,000 and $184,363,000, respectively. The Company had working capital of $8,866,000 and $10,611,000 as of Sept. 30, 2022 and March 31, 2022, respectively. The cash balance at September 30, 2022 and March 31, 2022 was $3,351,000 and $7,396,000, respectively. Sonoma Pharmaceuticals statd, "Management believes that the Company has access to additional capital resources through possible public or private equity offerings, debt financings, corporate collaborations or other means; however, the Company cannot provide any assurance that other new financings will be available on commercially acceptable terms, if needed. If the economic climate in the U.S. deteriorates, the Company's ability to raise additional capital could be negatively impacted. If the Company is unable to secure additional capital, it may be required to take additional measures to reduce costs in order to conserve its cash in amounts sufficient to sustain operations and meet its obligations. These measures could cause significant delays in the Company's continued efforts to commercialize its products, which is critical to the realization of its business plan and the future operations of the Company. These matters raise substantial doubt about the Company's ability to continue as a going concern." A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1367083/000168316822007713/sonoma_i10q-093022.htm About Sonoma Pharmaceuticals Sonoma Pharmaceuticals, Inc. -- http://www.sonomapharma.com-- is a global healthcare company that develops and produces stabilized hypochlorous acid, or HOCl, products for a wide range of applications, including wound care, animal health care, eye care, oral care and dermatological conditions. The Company's products reduce infections, itch, pain, scarring and harmful inflammatory responses in a safe and effective manner. In-vitro and clinical studies of HOCl show it to have impressive antipruritic, antimicrobial, antiviral and anti-inflammatory properties. Its stabilized HOCl immediately relieves itch and pain, kills pathogens and breaks down biofilm, does not sting or irritate skin and oxygenates the cells in the area treated assisting the body in its natural healing process. The Company sells its products either directly or via partners in 54 countries worldwide. Sonoma reported a net loss of $5.09 million for the year ended March 31, 2022, compared to a net loss of $3.95 million for the year ended March 31, 2021. As of March 31, 2022, the Company had $18.85 million in total assets, $10.15 million in total liabilities, and $8.70 million in total stockholders' equity. Atlanta, Georgia-based Frazier & Deeter, LLC, the Company's auditor since 2021, issued a "going concern" qualification in its report dated July 13, 2022, citing that the Company has incurred significant losses and needs to raise additional funds to meet its obligations and sustain its operations. These conditions raise substantial doubt about its ability to continue as a going concern. SUREFUNDING LLC: Seeks to Hire Greenspoon Marder as OCP ------------------------------------------------------- SureFunding, LLC seeks approval from the U.S. Bankruptcy Court for the District of Delaware to employ Greenspoon Marder, LLP as an "ordinary course" professional. Greenspoon Marder will serve as corporate counsel for the Debtor. The firm will provide services relating to issues that directly impact the Debtor's day-to-day operations, including specialized legal services and consulting services. The Debtor will pay Greenspoon Marder 100 percent of its fees and reimburse 100 percent of its work-related expenses. About SureFunding LLC Las Vegas-based SureFunding was founded by Jason and Justin Abernathy in 2014 as a private investment vehicle. It opened in 2015 to outside investors, many of which were family, friends or business acquaintances. Its investments are in short-term, high-yield assets. SureFunding sought Chapter 11 protection (Bankr. D. Del. Case No. 20-10953) on April 14, 2020, listing $10 million to $50 million in both assets and liabilities. Judge Laurie Selber Silverstein oversees the case. Carl N. Kunz, III, Esq., and Jeffrey R. Waxman, Esq., at Morris James, LLP are the Debtor's bankruptcy attorneys while Ted Gavin of Gavin/Solmonese, LLC serves as the Debtor's chief restructuring and liquidation officer. Bayard, P.A. represents the ad hoc committee of SureFunding noteholders. THOMAS M. DLUGOLECKI: Order Issued on Asset Sale & Case Dismissal ----------------------------------------------------------------- Judge Christopher B. Latham of the U.S. Bankruptcy Court for the Southern District of California authorized Thomas Michael Dlugolecki's sale of the real property located at 7671 Iluminado, in San Diego, California 92127, for over $4.5 million. The Court has reviewed and considered the Debtor's Motion To Sell Real Property Free And Clear Of Liens, For Approval Of Purchase Agreement, For Payment Of Certain Creditors, Administrative Claims And Certain Costs Related To The Sale, For Dismissal Of This Case, And For All Other Appropriate Relief. The Debtor attempted to file such Motion on Sept. 29, 2022 as DN54, along with a Notice of Hearing as DN55 and a Supporting Declaration as DN56. He erred by attaching the wrong document when he filed such DN54, however, and corrected such error by filing the subject Motion on Oct. 13, 2022 as DN58. The Court has also reviewed and considered the Response to such Motion filed by creditor U.S. Bank Trust N.A. on Oct. 19, 2022 as DN59, the Opposition to such Motion filed by the U.S. Trustee on Oct. 20, 2022 as DN62, and the Stipulation between the Debtor and creditor U.S. Bank Trust, N.A. filed on Oct. 28, 2022 as DN67. The Court has also reviewed and considered the Debtor's Reply to the U.S. Trustee's Opposition filed on Oct. 25, 2022 as DN64, and the Debtor's Reply to U.S. Bank Trust's Response filed Oct. 25, 2022 as DN 65. The Court has also heard and considered all arguments for and against such Motion at the hearing on Oct. 31, 2022, at 2:00 p.m. After all such reviewing, hearing and consideration, the Court orders: a. The Debtor must file a separate motion seeking dismissal of the case. If he is able to file and notice such motion to dismiss by Nov. 15, 2022, such motion will come on for hearing on Dec. 19, 2022 at 2:00 p.m., with any opposition papers filed by Dec. 2, 2022 and any Debtor Reply papers filed by Dec. 9, 2022. If the Debtor is unable to file such motion by Nov. 15, 2022, his attorney may contact the Courtroom Clerk and obtain a hearing date at an appropriate dated and time after Dec. 19, 2022, and include such date and time in his Notice and other moving papers regarding such motion to dismiss. b. The portion of the Debtor's Motion seeking the Court's approval of the subject sale agreement, and seeking the Court's approval to close the subject escrow and thereby sell the subject property is granted. In addition, the Debtor and the subject escrow holder, Rancho Santa Fe Escrow, Inc., are authorized to pay all liens against the subject real property, and all other Debits shown in the estimated Seller's Closing Statement dated Oct. 25, 2022 which was attached to the Debtor's referenced Reply (DN64), including the updated amount of $141,493.45 to the IRS. c. After payment of all such liens and listed Debits, Rancho Santa Fe Escrow, Inc. is authorized and directed to pay all remaining sale proceeds, which would otherwise be paid to the Debtor and/or his wife, to the client trust account of attorney Bruce R. Babcock, with such funds being wired from such escrow holder to such client trust account at a wiring address to be provided by attorney Babcock to such escrow holder. Attorney Babcock will hold such proceeds in such Trust account until further order of the Court. d. The Court also approves the following terms set forth in DN67 to be included in this Order: (1) The Claim of Creditor U.S. Bank Trust will be paid in full based upon an updated payoff quote as of the closing date of the sale. Such Creditor will be paid directly through the escrow company. The Debtor or his authorized representative must contact such creditor for an updated payoff quote prior to closing escrow. Expired payoff quotes may not be used to close the sale. (2) Such Creditor's Claim will not be surcharged in any way with the costs of the sale, broker commissions, attorney's fees, trustee fees, or any other administrative claims, costs, or expenses in connection with the sale of the Property. (3) In the event that the anticipated subject sale described in the Debtor's Motion filed in his case on Oct. 13, 2022 ("Subject Sale") of his the Property is not completed, or funds are not received by Creditor to satisfy the Subject Loan after closing, Creditor will retain its lien for the full due under the Subject Loan. (4) The Debtor will obtain a Sale Order approving any sale of the Property. The terms of this Stipulation will be incorporated into any Sale Order. (5) The Debtor will complete the Sale of the Property and pay Creditor's Claim as provided in full within 90 days of the entry of the Sale Order, or the terms of this Stipulation will be void. (6) The terms of the Sale Order will be incorporated into any Chapter 11 Plan filed in the Case. Thomas Michael Dlugolecki sought Chapter 11 protection (Bankr. S.D. Cal. Case No. 22-01720) on June 30, 2022. The Debtor tapped Bruce Babcock, Esq. as counsel. TITAN IMPORTS: Unsecured Creditors to Get Nothing in Amended Plan ----------------------------------------------------------------- Titan Imports, Inc., submitted a First Amended Plan of Reorganization for Small Business dated November 22, 2022. Funding for the Plan will come from Debtor's net disposable income from business operations. The Debtor owes Priority (taxes) (2015-2019 taxes owed to DRT - principal and interest only) estimated at $1,463,987.09. $600,000.00. OIC payment shall be applied to the principal and interest on the Allowed Priority Tax Claim. The balance of the Allowed Priority Tax Claim shall be paid to the DRT as follows: 16 equal quarterly installments of $25,000 due on the last day of each calendar quarter starting March 31, 2023; the balance of the Allowed Priority Tax Claim shall be paid on January 31, 2027 by refinancing with the Bank of Guam. Balance of the taxes as of January, 2027 is of estimated $500,000. Administrative expense claims are estimated to be approximately $98,000. Administrative expenses will be paid in four quarterly installments beginning on the earlier of the Effective Date of the Plan or the date the administrative expenses are allowed by the Court. The Debtor owes alcoholic beverage tax ("ABC") for complimentary alcohol for the period from 2015 to 2019. The Debtor has calculated the accrued ABC liability at $2,561,977.41 (including penalties) based on the Debtor's internal analysis. The Debtor estimates that approximately $1.1 million of the ABC liability consists of non-priority penalties. DRT has filed a proof of claim in asserting priority taxes of approximately $2.399 million for the relevant period, and John Ryan has filed a proof of claim for the same taxes in the amount of approximately $2.645 million. As of September 30, 2022, the Debtor had approximately $578,580.65 in cash (at the Bank of Guam and Merrill Lynch) and approximately $209,067.36 in mutual funds, substantially less than it projected due to vendors requiring COD or prepayment terms for inventory. The Debtor is current on its administrative obligations. On August 23, 2022, the Court entered its Under Advisement Order Concerning Claimed Retroactive Application of Guam's Whistleblower Statute in which the Court determined that DRT lacked standing to pursue a claim against the Debtor for prepetition ABC Taxes against the Debtor. DRT has appealed the Court's ruling to the Ninth Circuit Court of Appeals. Class 3 consists of General Unsecured Class [including DRT Penalties]. General unsecured creditors will not receive a distribution under the Plan. This Class is impaired. On Confirmation of the Plan, all property of the Debtor, tangible and intangible, including, without limitation, licenses, furniture, fixtures and equipment, will revert, free and clear of all Claims and Equitable Interests except as provided in the Plan, to the Debtor. The Debtor expects to have sufficient cash on hand to make the payments required on the Effective Date. The Debtor will continue its business operations and pay Plan obligations from its net disposable income. If necessary, the Debtor intends to liquidate its mutual funds necessary to fund the payment of Allowed administrative expense claims. A full-text copy of the First Amended Plan dated November 22, 2022, is available at https://bit.ly/3EMPDJc from PacerMonitor.com at no charge. Attorneys for Debtor: David W. Dooley, Esq. ROBERTS FOWLER & VISOSKY LLP 865 South Marine Corps Drive Suite 201, Orlean Pacific Plaza Tamuning, Guam 96913 Tel: (671) 646-1222 Fax: (671) 646-1223 Email: dooley@guamlawoffice.com Chuck C. Choi, Esq. Allison A. Ito, Esq. CHOI & ITO 700 Bishop Street, Suite 1107 Honolulu, HI 96813 Telephone: (808) 533-1877 Fax: (808) 566-6900 Email: cchoi@hibklaw.com; aito@hibklaw.com About Titan Imports, Inc. Titan Imports, Inc. is a premium and luxury wines and spirits distribution company in Guam and the Northern Marianas Islands. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Guam Case No. 22-00007) on March 25, 2022. In the petition filed by John D. Antenorcruz, president, the Debtor disclosed up to $10 million in both assets and liabilities. Judge Frances M. Tydingco-Gatewood oversees the case. David W. Dooley, Esq., at Roberts Fowler and Visosky LLP, is the Debtor's counsel. TOUCHPOINT GROUP: Posts $2.6 Million Net Loss in Third Quarter -------------------------------------------------------------- Touchpoint Group Holdings, Inc. has filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss attributable to the company's common stockholders of $2.57 million on $2,000 of revenue for the three months ended Sept. 30, 2022, compared to a net loss attributable to the company's common stockholders of $691,000 on $24,000 of revenue for the three months ended Sept. 30, 2021. For the nine months ended Sept. 30, 2022, the Company reported a net loss attributable to the company's common stockholders of $5.08 million on $33,000 of revenue compared to a net loss attributable to the company's common stockholders of $3.16 million on $90,000 of revenue for the nine months ended Sept. 30, 2021. As of Sept. 30, 2022, the Company had $560,000 in total assets, $4.52 million in total liabilities, $605,000 in temporary equity, and a total stockholders' deficit of $4.56 million. Touchpoint stated, "The Company has incurred net losses and negative cash flows from operations which raise substantial doubt about the Company's ability to continue as a going concern. The Company has principally financed these losses from the sale of equity securities and the issuance of convertible debt instruments. "The Company will be required to raise additional funds through various sources, such as equity and debt financings. While the Company believes it is probable that such financings could be secured, there can be no assurance the Company will be able to secure additional sources of funds to support its operations, or if such funds are available, that such additional financing will be sufficient to meet the Company's needs or on terms acceptable to us." A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/225211/000175392622001486/g083267_10q.htm About Touchpoint Group Headquartered in Miami, Florida, Touchpoint Group Holdings Inc. -- http://touchpointgh.com-- is engaged in media and digital technology, primarily in sports entertainment and related technologies that bring fans closer to athletes and celebrities. Touchpoint Group a net loss attributable to common stockholders of $5.19 million for the year ended Dec. 31, 2021, a net loss attributable to common stockholders of $3.54 million for the year ended Dec. 31, 2020, and a net loss of $6.63 million for the year ended Dec. 31, 2019. As of June 30, 2022, the Company had $2.27 million in total assets, $5.17 million in total liabilities, $605,000 in temporary equity, and a total stockholders' deficit of $3.51 million. Tampa, Florida-based Cherry Bakaert LLP, the Company's auditor since 2016, issued a "going concern" qualification in its report dated April 15, 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. TPT GLOBAL: Delays Filing of Third Quarter Form 10-Q ---------------------------------------------------- TPT Global Tech, Inc. filed a Form 12b-25 with the Securities and Exchange Commission with respect to its Quarterly Report on Form 10-Q for the period ended Sept. 30, 2022. TPT Global was unable without unreasonable effort and expense to prepare its accounting records and schedules in sufficient time to allow its accountants to complete their review of the Company's financial statements for the period ended Sept. 30, 2022 before the required filing date for the Quarterly Report on Form 10-Q. The Company intends to file the subject Quarterly Report on Form 10-Q on or before the fifth calendar day following the prescribed due date. About TPT Global Tech TPT Global Tech Inc. (OTC:TPTW) based in San Diego, California, is a technology-based company with divisions providing telecommunications, medical technology and product distribution, media content for domestic and international syndication as well as technology solutions. It offers Software as a Service (SaaS), Technology Platform as a Service (PAAS), Cloud-based Unified Communication as a Service (UCaaS). TPT Global Tech offers carrier-grade performance and support for businesses over its private IP MPLS fiber and wireless network in the United States. TPT Global Tech's cloud-based UCaaS services allow businesses of any size to enjoy all the latest voice, data, media and collaboration features in today's global technology markets. It also operates as a Master Distributor for Nationwide Mobile Virtual Network Operators (MVNO) and Independent Sales Organization (ISO) as a Master Distributor for Pre-Paid Cell phone services, Cell phone Accessories and Global Roaming Cell phones. TPT Global reported a net loss attributable to shareholders of $4.02 million for the year ended Dec. 31, 2021, compared to a net loss attributable to shareholders of $8.07 million for the year ended Dec. 31, 2020. As of June 30, 2022, the Company had $9.32 million in total assets, $32.10 million in total liabilities, $18.38 million in total mezzanine equity, and a total stockholders' deficit of $41.16 million. Draper, UT-based Sadler, Gibb & Associates, LLC, the Company's auditor since 2016, issued a "going concern" qualification in its report dated April 14, 2022, citing that the Company has suffered recurring losses from operations and has a net capital deficiency which raises substantial doubt about its ability to continue as a going concern. TPT GLOBAL: Enters Partnership With Black Pearl ----------------------------------------------- TPT Global Tech Inc. said it has signed a Strategic Investment Partnership Agreement (SIPA) for Cooperation in Design, Development, Manufacture, Investment and Management of Projects specifically related to Smart Green Cities, Residential Housing, Commercial Real Estate, Industrial Smart Parks, Infrastructure and Sustainable Development with Black Pearl Holding Co. and The Triwest Financial Group Inc. (dba Black Pearl Investments Inc.). BPI is a New York real estate investment firm whose potential investment outlined in the Agreement will be through dedicated credit facilities and structured funds within each phase and/or project Special Purpose Vehicle (SPV) according to the capital stack requirements and subject to conditions precedent. The lead development, construction activities, and operations for the Smart projects will be handled thru TPT Global's Real Estate and Development Technology division, TPT Strategic OTCBB:INOQ, which recently closed its acquisition of Information Systems Technology (IST), a general contractor and construction company based in Huntsville Alabama. IST has additional offices in Texas, Louisiana, Washington, Tennessee, and Mississippi. Mr. John Richard (J.R.) Chantengco, founder and managing director of Black Pearl Investments said, "We are always seeking cutting-edge opportunities for funding as well as synergies which will allow us to contribute strategically through our varied expertise and strengths. We are excited to be partnering with TPT Global Tech, Inc. which has a strong sense of the needs of the future, whether it is smart living, smart working, or smart sustainability and this resonates very well with our investment mandate which is to support next-generation businesses and technologies that will truly make a difference in our society." Black Pearl Investments is a rapidly emerging investment firm focused on capital advisory, structured finance, commercial real estate, and alternative investments in the non-investment grade-related marketplace. The firm seeks to generate attractive risk-adjusted returns through a broad array of strategies including core plus, value-added, and opportunistic situations. Its arranged funds are major providers of credit for small and middle-market enterprises and leverages those funds with investor mandates. According to the Agreement, BPI indicated they would provide investments related to the Smart City Projects identified as Proposed Transactions through this SIPA starting with those based in Tuskegee and Birmingham, Alabama. As stated, the proposed investments through the SIPA will be invested through dedicated credit facilities and structured funds within each phase and/or project SPV according to the capital stack requirement/s; subject to conditions precedent (i.e. engagement, setup fee, due diligence, underwriting, appraisal, feasibility, market studies, financial analyses, legal, compliance, final approval, etc.). TPT and BPI will finalize the terms and conditions for all engagements and projects through detailed agreements. If feasible and again as outlined in the Agreement, BPI will also provide large land parcels for setting up manufacturing and production facilities and contribute through its expertise and servicing of various products and services relevant to the projects identified and procured by TPT or its group companies. Mr. Chantengco, is a 30-year veteran of the capital markets, finance, and investment real estate space, having originated, underwrote, and transacted $5 billion in structured capital and financing assignments as well as overseen real estate assets with USD +20B AUM. Black Pearl's family office is a CDFI/CDE under the U.S. Treasury's New Markets Tax Credit Program and was a founding shareholder in Pacific Commerce Bancorp (OTC:PCBC). TPT Global Tech's Chairman and CEO Stephen J. Thomas III said, "The Smart City Development projects domestically and internationally have been a substantial part of our broader strategic plans, and the investment through this SIPA and the revenue opportunities in Alabama, we believe has the potential to drive shareholder value for some years to come. We are buoyed by the confidence that Mr. Chantengco has shown with his decision to enter into this Strategic Investment & Partnership Agreement with TPTW. He clearly understands the long-term relevance that new Smart City Development initiatives can have on our communities and the economic environment of regions in need across the United States and abroad." "I take this opportunity to thank Mr. Chantengco and the whole Black Pearl Investments team for their trust, faith, and confidence in TPT Global Tech's smart city vision and objectives," said Mr. Thomas. Mr. Thomas continued, "We are emboldened to have BPI involved with us for additional projects, primarily in the US, which we plan on initiating as soon as the Tuskegee project is underway. TPT Global Tech is focused on building strong business corridors within the US and with other partner countries such as India which will help support our objective to strengthen domestic industries, attract global companies, create jobs, improve regional infrastructure including schools and universities, as well as developing economic opportunities for Americans." About TPT Global Tech TPT Global Tech Inc. (OTC:TPTW) based in San Diego, California, is a technology-based company with divisions providing telecommunications, medical technology and product distribution, media content for domestic and international syndication as well as technology solutions. It offers Software as a Service (SaaS), Technology Platform as a Service (PAAS), Cloud-based Unified Communication as a Service (UCaaS). TPT Global Tech offers carrier-grade performance and support for businesses over its private IP MPLS fiber and wireless network in the United States. TPT Global Tech's cloud-based UCaaS services allow businesses of any size to enjoy all the latest voice, data, media and collaboration features in today's global technology markets. It also operates as a Master Distributor for Nationwide Mobile Virtual Network Operators (MVNO) and Independent Sales Organization (ISO) as a Master Distributor for Pre-Paid Cell phone services, Cell phone Accessories and Global Roaming Cell phones. TPT Global reported a net loss attributable to shareholders of $4.02 million for the year ended Dec. 31, 2021, compared to a net loss attributable to shareholders of $8.07 million for the year ended Dec. 31, 2020. As of June 30, 2022, the Company had $9.32 million in total assets, $32.10 million in total liabilities, $18.38 million in total mezzanine equity, and a total stockholders' deficit of $41.16 million. Draper, UT-based Sadler, Gibb & Associates, LLC, the Company's auditor since 2016, issued a "going concern" qualification in its report dated April 14, 2022, citing that the Company has suffered recurring losses from operations and has a net capital deficiency which raises substantial doubt about its ability to continue as a going concern. TPT GLOBAL: Unit Awarded $2.86 Million U.S. Army Contract --------------------------------------------------------- TPT Global Tech, Inc. announced that IST, a division of its subsidiary, TPT Strategic Inc., a General Construction and Information Technology Services company, has been awarded its third 3-year contract renewal valued at $2,862,435.00 with the U.S. Army Contracting Command, Stryker Division. Information Systems Technology (IST) will support the Initial Fielding of Stryker vehicles, Army Training and Education. The company will also create, maintain and track all logistical programmatic-related issues about the fielding, deployment, retrofitting, and prep for reset/reissue of Stryker vehicles. "TPT Global Tech has been planning to enter the government contracting space for some time now as part of our overall strategic plan. This is the first of a planned series of federal contracts the company is expecting as a result of the completion of its IST acquisition," said Stephen J Thomas III, Chairman and CEO of TPT Global Tech. About TPT Global Tech TPT Global Tech Inc. (OTC:TPTW) based in San Diego, California, is a technology-based company with divisions providing telecommunications, medical technology and product distribution, media content for domestic and international syndication as well as technology solutions. It offers Software as a Service (SaaS), Technology Platform as a Service (PAAS), Cloud-based Unified Communication as a Service (UCaaS). TPT Global Tech offers carrier-grade performance and support for businesses over its private IP MPLS fiber and wireless network in the United States. TPT Global Tech's cloud-based UCaaS services allow businesses of any size to enjoy all the latest voice, data, media and collaboration features in today's global technology markets. It also operates as a Master Distributor for Nationwide Mobile Virtual Network Operators (MVNO) and Independent Sales Organization (ISO) as a Master Distributor for Pre-Paid Cell phone services, Cell phone Accessories and Global Roaming Cell phones. TPT Global reported a net loss attributable to shareholders of $4.02 million for the year ended Dec. 31, 2021, compared to a net loss attributable to shareholders of $8.07 million for the year ended Dec. 31, 2020. As of June 30, 2022, the Company had $9.32 million in total assets, $32.10 million in total liabilities, $18.38 million in total mezzanine equity, and a total stockholders' deficit of $41.16 million. Draper, UT-based Sadler, Gibb & Associates, LLC, the Company's auditor since 2016, issued a "going concern" qualification in its report dated April 14, 2022, citing that the Company has suffered recurring losses from operations and has a net capital deficiency which raises substantial doubt about its ability to continue as a going concern. TPT GLOBAL: Units Complete $2.9M Kentucky Road Construction Project ------------------------------------------------------------------- TPT Global Tech, Inc. announced that its subsidiary TPT Strategic Inc. and its newly acquired construction company, Information Security and Training LLC, a General Construction and Information Technology Services company, have successfully concluded its $2.89M 2-year Highway construction project, MAMMOTH CAVE PAVING, National Park Services, Mammoth, KY for the Federal Highway Administration Eastern Federal Lands Highway Division, September 2022. IST has approximately $5.4M backlogged in executed Government contracts, as of April 2022, and looks forward to beginning work on each of them. IST, based in Huntsville Alabama, with branch offices in Nashville TN, Birmingham Al, Jackson MS, Fort Campbell KY, New Orleans LA, and Joint Base Lewis-McChord, has two divisions, Construction and IT Technology, and has been a general contractor for over 15years. IST has been in the Federal Marketplace since its inception in 2008 and has completed work for over 15 federal agencies. IST has been successfully providing design-build construction, demolition, abatement, earthwork, concrete, steel and metal work, masonry, underground utilities, environmental protection, and site restoration services since 2008. IST differentiates itself by offering superior quality results at a competitive price. IST safely delivers projects on time and within budget. IST has a bonding capacity of $10M per single project and $20M aggregate. IST Information Technology Services Division provides program management, System Engineering, Software Development, Network Engineering, Records Management and Controls, Physical Security and Information Assurance, Video Teleconferencing and AV systems, Help Desk Services, and Information Technology Statements of Qualification. IST is committed to maintaining customer satisfaction, trust and Integrity by delivering quality products and services conforming to industry best practices and continuous process improvement. With the completed acquisition of IST and its seasoned professional team of construction engineers and design teams, TPT Global Tech is positioned to start its Tuskegee Smart City project. "It is such a pleasure to work with Everett Lanier the new President for TPT Strategic and the IST Team. They are bringing such a high level of professionalism and experience to TPT Global Tech's already seasoned team of Executives to assist us as we move forward with our Smart City initiatives domestically and internationally," said Stephen J Thomas III, chairman & CEO of TPT Global Tech. About TPT Global Tech TPT Global Tech Inc. (OTC:TPTW) based in San Diego, California, is a technology-based company with divisions providing telecommunications, medical technology and product distribution, media content for domestic and international syndication as well as technology solutions. It offers Software as a Service (SaaS), Technology Platform as a Service (PAAS), Cloud-based Unified Communication as a Service (UCaaS). TPT Global Tech offers carrier-grade performance and support for businesses over its private IP MPLS fiber and wireless network in the United States. TPT Global Tech's cloud-based UCaaS services allow businesses of any size to enjoy all the latest voice, data, media and collaboration features in today's global technology markets. It also operates as a Master Distributor for Nationwide Mobile Virtual Network Operators (MVNO) and Independent Sales Organization (ISO) as a Master Distributor for Pre-Paid Cell phone services, Cell phone Accessories and Global Roaming Cell phones. TPT Global reported a net loss attributable to shareholders of $4.02 million for the year ended Dec. 31, 2021, compared to a net loss attributable to shareholders of $8.07 million for the year ended Dec. 31, 2020. As of June 30, 2022, the Company had $9.32 million in total assets, $32.10 million in total liabilities, $18.38 million in total mezzanine equity, and a total stockholders' deficit of $41.16 million. Draper, UT-based Sadler, Gibb & Associates, LLC, the Company's auditor since 2016, issued a "going concern" qualification in its report dated April 14, 2022, citing that the Company has suffered recurring losses from operations and has a net capital deficiency which raises substantial doubt about its ability to continue as a going concern. UNIVERSAL REHEARSAL: Wins Cash Collateral Access Thru Dec 30 ------------------------------------------------------------ The U.S. Bankruptcy Court for the Northern District of Texas, Dallas Division, authorized Universal Rehearsal Partners, Ltd. to use cash collateral on an interim basis in accordance with the budget, with a 20% variance. The Debtor requires the use of cash collateral to fund working capital. PlainsCapital Bank, a Texas state bank, asserts an interest in the Debtor's cash collateral. As of the Petition Date, the Debtor was a party to a Note, Security Agreement, and Deed of Trust and other Loan Documents with PlainsCapital Bank. As of the Petition Date, the Debtor is liable to the Lender in the amount of $706,807. The Maturity Date of the Loan is March 16, 2023. The Debtor admits, acknowledges, and does not dispute that, as security for repayment of the Prepetition Indebtedness, the Lender holds valid, senior, perfected, and enforceable liens in all of the collateral described in the various Loan Documents, which include substantially all of the tangible and intangible personal property assets of the Debtor as of the Petition Date. The Debtor further admits, acknowledges, and does not dispute: (a) all of the amounts owing to the Lender pursuant to the Loan Documents are legally binding and enforceable obligations of the Debtor; (b) the Loan Documents are valid and enforceable against the Debtor in accordance with their terms; (c) the liens of the Lender in, to, and against all of the Prepetition Collateral are valid, enforceable and properly perfected, and are not subject to avoidance under any state or federal law; and (d) there are no existing claims or causes of action of the Debtor, whether liquidated or unliquidated, direct or indirect, and whether arising under state or federal law against the Lender, arising from the relationship between the Debtor, on one hand, and the Lender, on the other hand; and (e) the Lender's Prepetition Collateral. As adequate protection, the Debtor will deliver to the Lender monthly payments due under the Loan Documents at the non-default rate as set forth therein as they come due. The Lender is also granted, from and after the Petition Date, replacement liens and security interests in all of the Debtor's assets, including assets acquired after the Petition Date, specifically including all cash proceeds, in the same nature, extent, priority, and validity that such liens existed on the Petition Date. To the extent the Replacement Liens granted do not provide the Lender with adequate protection of its interests in the cash collateral, the Lender will have superpriority administrative expense claims in each of the Bankruptcy Cases under Bankruptcy Code section 507(b) with priority over every other administrative claim of any kind except the Carve Out. The Carve-Out means the sum of: (i) all fees and expenses required to be paid to the Clerk of the Bankruptcy Court and the U.S. Trustee pursuant to 28 U.S.C. section 1930(a) plus interest at the statutory rate; (ii) to the extent allowed at any time, whether by interim order, procedural order, or otherwise, all unpaid fees and expenses accrued or incurred by persons or firms retained by the Debtor pursuant to section 327, 328, or 363 of the Bankruptcy Code before or on the first business day following delivery by the Lender of a written notice delivered by email to the Debtor, its lead restructuring counsel, and the U.S. Trustee, which notice may be delivered following the occurrence and during the continuation of an Event of Default under the Interim Order that is not cured during the Cure Period stating that the Post-Carve-Out Trigger Notice Cap has been invoked; and (iii) Professional Fees in an aggregate amount not to exceed $50,000 incurred after the first business day following delivery by the Lender of the Carve-Out Trigger Notice, to the extent allowed at any time, whether by interim order, procedural order, or otherwise. The events that constitute an "Event of Default" include: a. If the Debtor fails to timely deliver to the Lender the Adequate Protection Payments described in the Second Interim Order; b. If the Debtor's actual operating disbursements under the Budget exceed the amounts set forth in the Budget by more than the Budget Variance causing the Debtor to be incapable of making the Adequate Protection Payments, unless with the prior written consent of the Lender or further Court authority; c. If the Debtor pays obligations not shown on the Budget without the prior written consent of the Lender or further authority from the Court; and d. If any representation made by the Debtor after the commencement of the Bankruptcy Case in any report or financial statement delivered to the Lender proves to have been knowingly false or misleading in any material respect as of the time when made or given. The Debtor's authorization to use cash collateral will terminate upon the earlier of: (i) the end of business on December 30, or any later date the Lender agrees upon in writing; (ii) 1o days following the date upon which a Chapter 11 or Chapter 7 trustee is appointed in the Bankruptcy Case; and (iii) the occurrence of an uncured event of default by the Debtor under the Second Interim Order. A further hearing on the matter is set for December 22, 2022 at 1:30 p.m. A copy of the order is available at https://bit.ly/3XHV195 from PacerMonitor.com. About Universal Rehearsal Partners, Ltd. Universal Rehearsal Partners, Ltd. is a Texas limited partnership formed in 2001 between John Kirtland and Vince Barnhil for the acquisition of certain real property and the operation at that property of a business that leases practice rooms and rehearsal spaces to musicians and bands. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 22-31966) on October 21, 2022. In the petition signed by Marcus Morriss, managing member of general partner, the Debtor disclosed up to $10 million in assets and liabilities. The Debtor is represented by John J. Kane, Esq., S. Kyle Woodard, Esq., and JaKayla J. DaBera, Esq., at KANE RUSSELL COLEMAN LOGAN PC in Dallas. VERITAS FARMS: Top Official Resigns ----------------------------------- Alessandro Annoscia stepped down as chief executive officer, president, and a director of Veritas Farms, Inc., and from any and all other positions he held with the Company. Mr. Annoscia and the Company will determine the terms of his departure at a future date. Thomas E. Vickers, Chairman of the Board, has been appointed as interim chief executive officer (principal executive officer) and president of the Company until a permanent successor chief executive officer is appointed. Mr. Vickers, 58, has served as a director of the Company since October 2020 and as Chairman of the Board since May 2021, and he will continue in those roles. Mr. Vickers is a highly accomplished corporate finance and operations executive with 35 years of business experience. Since December 2019 Mr. Vickers has served as the president and founder of Stack Financial, Inc., which provides family office, CFO on demand, finance, and accounting services to various long-term and short-term contracts. Mr. Vickers has previously held senior executive financial and operational positions such as chief financial officer and SVP of Human Resources at OmniComm Systems, Inc; vice president of Finance of OmniComm Systems, Inc; vice president of Operations at S & J; vice president, Financial Operations at Precision Response Corporation; and Director of Servicing Operations and Controller of Ocwen Financial Corporation. Mr. Vickers received both a B.B.A. in Finance and a B.B.A. in Accounting from Florida Atlantic University and earned his M.B.A. in Finance from the University of Miami. Additionally, Mr. Vickers received his Master of Taxation (M.T.X.) degree from Florida Atlantic University and is a Chartered Financial Analyst Charterholder. While serving as interim chief executive officer and president, Mr. Vickers will receive no additional compensation. Mr. Vickers will be considered an employee-at-will and is not subject to a separate employment agreement. According to the Company, there are no family relationships between Mr. Vickers and any other director or executive officer of the Company. There are no understandings or arrangements between Mr. Vickers and any other person pursuant to which Mr. Vickers was appointed as interim chief executive officer and president of the Company. About Veritas Fort Lauderdale, Florida-based Veritas Farms, Inc. -- www.TheVeritasFarms.com -- is a vertically-integrated agribusiness focused on growing, producing, marketing, and distributing superior quality, whole plant, full spectrum hemp oils and extracts containing naturally occurring phytocannabinoids. Veritas Farms owns and operates a 140 acre farm in Pueblo, Colorado, capable of producing over 200,000 proprietary full spectrum hemp plants which can potentially yield a minimum annual harvest of 250,000 to 300,000 pounds of outdoor-grown industrial hemp. Veritas Farms reported a net loss of $7.07 million for the year ended Dec. 31, 2021, compared to a net loss of $7.59 million for the year ended Dec. 31, 2020. As of Sept. 30, 2022, the Company had $8.35 million in total assets, $6.58 million in total liabilities, and $1.76 million in total shareholders' equity. Hackensack, New Jersey-based Prager Metis CPA's LLC, the Company's auditor since 2018, issued a "going concern" qualification in its report dated April 12, 2022, citing that the Company has sustained substantial losses from operations since its inception. As of and for the year ended Dec. 31, 2021, the Company had an accumulated deficit of $33,930,714, and a net loss of $7,263,567. These factors, among others, raise substantial doubt about the ability of the Company to continue as a going concern. Continuation as a going concern is dependent on the ability to raise additional capital and financing, though there is no assurance of success. VIDEO RIVER: Posts $494K Net Income in Third Quarter ---------------------------------------------------- Video River Networks, Inc. has filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing net income of $493,596 on $1.04 million of total revenue for the three months ended Sept. 30, 2022, compared to net income of $79,734 on $2 million of total revenue for the three months ended Sept. 30, 2021. For the nine months ended Sept. 30, 2022, the Company reported net income of $2.07 million on $10.91 million of total revenue compared to net income of $946,676 on $6.04 million of total revenue for the same period in 2021. As of Sept. 30, 2022, the Company had $10.82 million in total assets, $6.52 million in total liabilities, and $4.29 million in total stockholders' equity. For the nine months ended Sept. 30, 2022, the Company reported revenue of $10,906,500 and an accumulated deficit of $15,094,840 as of Sept. 30, 2022. The Company said these conditions raise substantial doubt about its ability to continue as a going concern. "Our ability to continue as a going concern is dependent upon our ability to raise debt or equity funding to meet our ongoing operating expenses and ultimately in merging with another entity with experienced management and profitable operations. No assurances can be given that we will be successful in achieving these objectives," Video River stated in the SEC filing. A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1084475/000149315222033152/form10-q.htm About Video River Headquartered in Torrance, California, Video River Networks, Inc. is a technology holding firm that operates and manages a portfolio of Electric Vehicles, Artificial Intelligence, Machine Learning and Robotics ("EV-AI-ML-R") assets, businesses and operations in North America. The Company's current and target portfolio businesses and assets include operations that design, develop, manufacture and sell high-performance fully electric vehicles and design, manufacture, install and sell Power Controls, Battery Technology, Wireless Technology, and Residential utility meters and remote, mission-critical devices mostly engineered through Artificial Intelligence, Machine Learning and Robotic technologies NIHK's current technology-focused business model is a result of its board resolution on Sept. 15, 2020 to spin-in/off its specialty real estate holding business to an operating subsidiary and then pivot back to being a technology company. Newhall, California-based DylanFloyd Accounting & Consulting, the Company's auditor since 2019, issued a "going concern" qualification in its report dated April 10, 2022, citing that the Company has an accumulated deficit of $17,159,878 for the year ended Dec. 31, 2021. These factors raise substantial doubt about the Company's ability to continue as a going concern. VIVAKOR INC: Incurs $1.6 Million Net Loss in Third Quarter ---------------------------------------------------------- Vivakor, Inc. has filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing a net loss attributable to the company of $1.58 million on $11.76 million of revenues for the three months ended Sept. 30, 2022, compared to a net loss attributable to the company of $2.91 million on $965,757 of revenues for the three months ended Sept. 30, 2021. For the nine months ended Sept. 30, 2022, the Company reported a net loss attributable to the company of $7.08 million on $11.76 million of revenues compared to a net loss attributable to the company of $2.80 million on $1.08 million of revenues for the same period during the prior year. As of Sept. 30, 2022, the Company had $94.80 million in total assets, $57.13 million in total liabilities, and $37.67 million in total stockholders' equity. The Company has historically suffered net losses and cumulative negative cash flows from operations and, as of Sept. 30, 2022 and 2021, the Company had an accumulated deficit of approximately $42.8 million and $33.1 million. As of Sept. 30, 2022 and Dec. 31, 2021, the Company had cash and cash equivalents of $4,521,791 and $1,493,719, with $147,865 and $199,952 attributed to variable interest entities, respectively. To date the Company has financed its operations primarily through debt financing, private equity offerings and its working interest agreements, although on Feb. 14, 2022, the Company closed an underwritten public offering of 1,600,000 shares of common stock, at a public offering price of $5.00 per share, for aggregate gross proceeds of $8.0 million, prior to deducting underwriting discounts, commissions, and other offering expenses. The Company's Common Stock began trading on the Nasdaq Capital Market under the symbol "VIVK". For the nine months ended Sept. 30, 2022 and 2021, the Company's net cash used in operating activities was driven by the consolidated net loss of $7,716,919 and 4,544,865, including expense related amortization and depreciation expense, stock options issued for services, and the increase in stock-based compensation. For the nine months ended Sept. 30, 2022 and 2021, the Company's net cash used in investing activities was mainly attributed to its purchase of equipment of $1,807,140 and $2,260,458 related to the manufacturing of its RPC plants. For the nine months ended Sept. 30, 2022 and 2021, the Company's net cash provided by its financing activities was mainly attributed to proceeds of $3,177,622 and $8,033,407 related to the issuance of convertible bridge notes and other loans, and from the proceeds of $6,240,000 from its Feb. 14, 2022 underwritten public offering of 1,600,000 shares of common stock. The Company made distributions to noncontrolling interests of $593,087 and none for the nine months ended Sept. 30, 2022 and 2021. The Company also made payments on notes payable of $534,111 and $374,065 for the nine months ended Sept. 30, 2022 and 2021. Vivakor stated, "There are no further existing firm obligations; however we anticipate further construction costs of approximately $2.5 million in connection with our construction in process of our current RPC plants. "Our ability to continue to access capital could be affected adversely by various factors, including general market and other economic conditions, interest rates, the perception of our potential future earnings and cash distributions, any unwillingness on the part of lenders to make loans to us and any deterioration in the financial position of lenders that might make them unable to meet their obligations to us. If we cannot generate or raise capital through scaled up operations of our sites, or from further public or private debt financings, equity offerings, or other means, our ability to grow our business may be negatively affected. "We believe the liquid assets of the Company give it adequate working capital to finance our day-to-day operations for at least twelve months through November 2023." A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1450704/000168316822007960/vivakor_i10q-093022.htm About Vivakor Inc. Coralville, Iowa-based Vivakor, Inc., is an operator, acquirer and developer of clean energy technologies and environmental solutions, primarily focused on soil remediation. The Company specializes in the remediation of soil and the extraction of hydrocarbons, such as oil, from properties contaminated by or laden with heavy crude oil and other hydrocarbon-based substances. Vivakor reported a net loss attributable to the company of $5.48 million for the year ended Dec. 31, 2021, compared to a net loss attributable to the company of $2.18 million for the year ended Dec. 31, 2020. As of June 30, 2022, the Company had $51.70 million in total assets, $17.84 million in total liabilities, and $33.86 million in total stockholders' equity. YUNHONG CTI: Terminates LJ Soldinger as Auditor ----------------------------------------------- The Audit Committee of the Board of Directors of Yunhong CTI Ltd., met with LJ Soldinger Associates, LLC (LJSA), the Company's independent registered public accounting firm, on Nov. 8, 2022. The audit relationship began during April 2022 and the Audit Committee and LJSA mutually disclosed to the other that they did not feel it was working to the satisfaction of all parties. Shortly after this call, the Company informed LJSA that the Audit Committee has decided to terminate its engagement of LJSA, and intends to engage another firm to be determined in the near future, as the Companys independent registered public accounting firm. As LJSA was appointed during April 2022, it did not audit any of the Company's annual financial statements. The audit reports of its prior auditor on the Company's consolidated financial statements as of and for the years ended Dec. 31, 2021 and Dec. 31, 2020 did not contain any adverse opinion or disclaimer of opinion, nor were such reports qualified or modified as to uncertainty, audit scope or accounting principles, except that the audit report on the Company's financial statements for the years ended Dec. 31, 2021 and Dec. 31, 2020 contained a paragraph indicating that there was substantial doubt about the ability of the Company to continue as a going concern. During the Nov. 8, 2022 meeting, the Company and LJSA communicated a disagreement in the recognition of income associated with the Employee Retention Tax Credit. LJSA asserted this should have been income during 2021 when the calculation was performed and amended payroll tax returns filed. The Company believed there was uncertainty in 2021 that was not resolved until the returns were processed and claims fulfilled. The Company said that during its two most recent fiscal years and the subsequent interim period through April 19, 2022, there were (i) no disagreements under Item 304(a)(1)(iv) of Regulation S-K between the Company and its prior auditor on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which, if not resolved to its prior auditor's satisfaction, would have caused its prior auditor to make reference to the subject matter of such disagreement in connection with its reports and (ii) no events of the types listed in paragraphs (A) through (D) of Item 304(a)(1)(v) of Regulation S-K, except as disclosed above in relation to the ERTC. As disclosed in Item 9A of the Company's Annual Reports on Form 10-K for the years ended Dec. 31, 2021 and Dec. 31, 2020, management determined a material weakness in internal control over financial reporting related to the Company's capabilities, processes, and controls related to limited staffing and over-reliance on certain personnel, as well as related employee turnover. A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company's annual or interim financial statements will not be prevented or detected on a timely basis. Management determined that these deficiencies constitute a material weakness that was not identified and remediated as of Dec. 31, 2021 and Dec. 31, 2020, respectively, as well as the first two quarterly periods of 2022. Based on this material weakness, management concluded that at Dec. 31, 2021 and Dec. 31, 2020, as well as the first two quarterly periods of 2022, internal control over financial reporting was not effective. About Yunhong CTI Lake Barrington, Illinois-based Yunhong CTI Ltd. -- www.ctiindustries.com -- develops, produces, distributes and sells a number of consumer products throughout the United States and in over 30 other countries, and it produces film products for commercial and industrial uses in the United States. Many of the Company's products utilize flexible films and, for a number of years, it has been a leading developer of innovative products which employ flexible films including novelty balloons, pouches and films for commercial packaging applications. Yunhong CTI reported a net loss of $7.55 million for the 12 months ended Dec. 31, 2021, a net loss of $4.29 million for the 12 months ended Dec. 31, 2020, and a net loss of $8.07 million for the 12 months ended Dec. 31, 2019. As of Sept. 30, 2022, the Company had $16.31 million in total assets, $13.50 million in total liabilities, and $2.81 million in total stockholders' equity. New York, NY-based RBSM LLP, the Company's auditor since 2019, issued a "going concern" qualification in its report dated April 15, 2022, citing that the Company has suffered recurring losses from operations and will require additional capital to continue as a going concern. This raises substantial doubt about the Company's ability to continue as a going concern. ZENTUARY GROUP: Wins Interim Cash Collateral Access --------------------------------------------------- The U.S. Bankruptcy Court for the Middle District of Florida, Tampa Division, authorized Zentuary Group LLC to use cash collateral on an interim basis in accordance with the budget. The Debtor is permitted to use cash collateral to pay: (a) amounts expressly authorized by the Court, including required payments to the Subchapter V Trustee; (b) the current and Necessary expenses set forth in the preliminary budget, plus an amount not to exceed 10% for each line item; and (c) such additional amounts as may expressly approved in writing by the Secured Creditors. Each creditor with a security interest in cash collateral will have a perfected post-petition lien against cash collateral to the same extent and with the same validity and priority as the prepetition lien, without the need to file or execute any document as may otherwise be required under applicable non bankruptcy law. The Debtor will maintain insurance coverage for its real and personal property in accordance with its obligations under any loan and security documents with any secured creditors. A continued hearing on the matter is scheduled for December 19, 2022 at 11 a.m. A copy of the order is available at https://bit.ly/3u93N2x from PacerMonitor.com. About Zentuary Group LLC Zentuary Group LLC, doing business as Farmacy Vegan Kitchen, is a quick service restaurant offering a well-rounded, 100% plant-based menu. Zentuary Group LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 22-02594) on June 28, 2022. In the petition filed by Charles Rumph, as president, the Debtor estimated liabilities between $500,000 and $1 million compared to estimated assets up to $50,000. Judge Caryl E. Delano oversees the case. James W Elliott, Esq., at McIntyre Thanasides Bringgold Elliott, et al, is the Debtor's counsel. [*] Colorado Bankruptcies Down 6.4% in October 2022 --------------------------------------------------- Christopher Wood of Loveland Reporter Herald reports that bankruptcies in Colorado declined 6.4% in October 2022 as compared with October 2021. Citing a BizWest analysis of U.S. Bankruptcy Court data, the report relates bankruptcy filings were flat or slightly declined in Boulder, Broomfield and Larimer counties and went slightly higher in Weld County. The numbers cited include all new filings, including open, closed and dismissed cases. In October 2022, the state recorded 440 bankruptcy filings as compared with 470 in October 2021. Year to date, the state recorded 4,254 bankruptcy filings, compared with 5,493 in the first 10 months of 2021, down 22.5%. Among the counties in Northern Colorado and the Boulder Valley: * Larimer County filings totaled 22 in October 2022, compared with 31 in 2021. Filings in the first 10 months of 2022 totaled 240, compared with 272 in the first 10 months of 2021, a drop of 11.8%. Larimer County recorded 18 bankruptcy filings in September 2022. * Weld County bankruptcy filings totaled 39 in October 2022, up from 31 recorded in 2021, an increase of 26%. Year-to-date filings totaled 345, compared with 384 a year ago, down 10%. Weld County recorded 40 bankruptcy filings in September 2022. * Boulder County recorded 17 bankruptcy filings in October 2022, compared with 19 in October 2021. The county recorded 145 filings year to date, down from 201 in the first 10 months of 2021, down 28%. Boulder County recorded 20 bankruptcy filings in September 2022. * Broomfield recorded eight bankruptcy filings in October 2022, the same as in October 2021. Year-to-date filings totaled 64, compared with 67 a year ago, down 4.5%. Broomfield recorded 14 bankruptcy filings in September 2022. ********* 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. 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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 ***