/raid1/www/Hosts/bankrupt/TCR_Public/221202.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Friday, December 2, 2022, Vol. 26, No. 335
Headlines
100 ORCHARD: Has Interim Access to Brick Moon's Cash Collateral
129 N WALNUT: May Use $80,000 in Cash Collateral Thru Jan 2023
129 N WALNUT: Unsecured Creditors Will Get 100% of Claims in Plan
208-214 E. 25TH ST: Case Summary & Five Unsecured Creditors
303 INVESTMENTS: Proposes $1.1MM Sale of 3 Elizabeth Properties
6200 NE 2ND AVENUE: 4.25% Interest Rate Applies to Benworth Claims
A AND N DIAMOND: Wins Interim Cash Collateral Access
ACETO CORP: Accounting Docs May Be Used in Trial, Court Says
ACETO CORP: Allowed to Present Evidence of Lost Profits
AG FOODS LLC: Taps Mac Restructuring as Financial Advisor
ALBERTO JULIAN PEREZ: $28K Sale of 2017 Ford F-150 to CarMax Okayed
ALCARAZ CATERING: Court OKs Deal on Cash Collateral Access
ALLENA PHARMACEUTICALS: Selling Centrifuge & Accessories for $250K
APEX SIERRA: Wins Cash Collateral Access Thru Jan 2023
ARA MACAO: Trustee's Sale of Belize Property for $5.8M to Song OK'd
ATLANTA WEST: Court OKs Deal on Cash Collateral Access
BELMONT TWIN: Seeks to Hire Avrum J. Rosen as Legal Counsel
BEN-BELLA TRANS: Case Summary & One Unsecured Creditor
BLUE MOON PROPERTY: Taps Vanden Bos & Chapman as Legal Counsel
BOYD GAMING: S&P Upgrades ICR to 'BB', Outlook Stable
BROOKDALE SENIOR: Egan-Jones Retains CCC Sr. Unsecured Ratings
C&L DINERS: Court OKs Cash Collateral Access Thru Jan 2023
CALUMET PAINT: Gets Cash Collateral Access Thru Feb 2023
CAMECO TECHNOLOGIES: Sec. 341 Creditors' Meeting on Dec. 21
CANADIAN UTILITIES: Egan-Jones Retains BB Sr. Unsecured Ratings
CAREVIEW COMMUNICATIONS: Sells $250K Worth of Shares to Directors
CHANDRA CORPORATION: Wins Interim Cash Collateral Access
CHARTER COMMUNICATIONS: Egan-Jones Retains BB Unsecured Ratings
CHERRY MAN: Wins Continued Cash Collateral Access
CITY LIVING KC: Wins Cash Collateral Access on Final Basis
CLARUS THERAPEUTICS: Taps Stretto as Administrative Advisor
CLIENT FIRST: Seeks to Hire Wernick Law as Legal Counsel
CLUBHOUSE MEDIA: Hikes Authorized Common Shares to 25 Billion
CM RESORT: Trustee's $3.5M Sale of Gordon Land Denied W/o Prejudice
COGENT COMMUNICATIONS: Egan-Jones Retains 'B-' Unsecured Ratings
COMMUNITY HEALTH: Egan-Jones Retains CCC+ Sr. Unsecured Ratings
COMPUTE NORTH: $1.55M Sale of LLC's Assets to Crusoe Energy OK'd
CONSOLIDATED COMMUNICATIONS: Egan-Jones Keeps B-FC Unsec. Ratings
CRANE MAN INC: Seeks to Hire Pepper and Nason as Legal Counsel
DIEBOLD NIXDORF: Egan-Jones Keeps CCC FC Sr. Unsecured Debt Rating
DRY MORE: Voluntary Chapter 11 Case Summary
DUNTOV MOTOR: Sale of Custom-Built Corvette for $80K or More Okayed
FLORIDA MULCH: Court OK's Cash Collateral Access Thru Dec 16
FREEPORT GATE: 55 Hudson Buying Marina Property for $1.13 Million
GAGE'S GRANITE: Wins Final Cash Collateral Access
GENAPSYS INC: Unsecureds to Recover 17% in Liquidating Plan
GEORGE SARIOTIS: Gifford Buying Ocean Township Property for $800K
GRAHAM ENT: Voluntary Chapter 11 Case Summary
H&S ALANG: Amends Class 3 Secured Claimant to American Bank
HANJRA TRUCKING: Taps Law Offices of Charles Wertman as Counsel
HILLENBRAND INC: Egan-Jones Retains 'BB+' FC Sr. Unsecured Ratings
HILTON WORLDWIDE: Egan-Jones Keeps B+ FC Sr. Unsecured Debt Rating
HOBBY LOBBY: Files Emergency Bid to Use Cash Collateral
HOME ENERGY: Unsecureds Will Get 17.03% of Claims in 5 Years
IGLESIAS DIOS: Exclusivity Period Extended to Dec. 9
INFINITE SYNERGY: Seeks $450 in Cash Collateral
IONIS PHARMACEUTICALS: Egan-Jones Retains B+ FC Sr. Unsec. Ratings
ISLAND DOG TOO: Gets OK to Hire Bruner Wright as Legal Counsel
JA SEEKINS PAINTING: Gets OK to Hire Hingston Miller as Accountant
JGR GROUP: Wins Cash Collateral Access Thru Jan 2023
JOGI PACK: Kathy Lynn Offers $750K for Substantially All Assets
KATE BARTENWERFER: SCOTUS to Hear Bankruptcy Case on Dec. 6
KEYS MEDICAL STAFFING: Wins Cash Collateral Access Thru Feb 2023
LAPEER AVIATION: Bankr. Appeal Will Proceed as a Right, Court Says
MARKAM TRANSPORT: Court OKs Deal on Cash Collateral Access
MEND CORRECTIONAL: Case Summary & 20 Largest Unsecured Creditors
MESSAGE IN ME: Seeks to Hire Craig M. Geno as Legal Counsel
METRO SERVICE: Wins Cash Collateral Access Thru Dec 31
MOLECULAR IMAGING: Court OKs Cash Collateral Access Thru Jan 2023
MUSCLE MAKER: Launches Vertical Integration Initiative With AGGIA
MYLIFE.COM INC: Argo Partners Buying ERTCs for $250K, Free of Liens
NATIVE ENGINEERS: Gets Interim OK to Use Cash Collateral
NOVABAY PHARMACEUTICALS: Effects 1-for-35 Reverse Stock Split
NOVABAY PHARMACEUTICALS: Grosses $3.25M From Private Placement
ONE CALL: S&P Alters Outlook to Negative, Affirms 'B-' ICR
ONE IMPORTERS: Wins Cash Collateral Access Thru Feb 2023
OUTFRONT MEDIA: Egan-Jones Retains CCC FC Sr. Unsec. Debt Ratings
PEPPERONI GRILL: U.S. Trustee Unable to Appoint Committee
PIPELINE HEALTH: Plan Confirmation Hearing Set for Dec. 19
POST HOLDINGS: Egan-Jones Retains B FC Sr. Unsecured Debt Ratings
PREMIER MODERN: Seeks Approval to Tap Financial Services Provider
PROPERTY HOLDERS: Seeks to Tap Rush Shortley as Bankruptcy Counsel
PURIFYING SYSTEMS: Has Deal on Cash Collateral Access
RALPH LAUREN: Egan-Jones Retains BB+ FC Sr. Unsecured Debt Ratings
RE-BUILD SEVILLE: Seeks to Hire Dal Lago Law as Co-Counsel
REVERSE MORTGAGE: Case Summary & 30 Largest Unsecured Creditors
ROLAND MAYEUX: RVG Property Buying Mandeville Empty Lot for $300K
ROMULUS INTERMEDIATE: S&P Downgrades ICR to 'B-', Outlook Stable
SAN JORGE CHILDREN'S: Commitee Taps RSM as Financial Advisor
SKY INN: Amends Plan to Resolve RSS Secured Claim Issues
SOUTHERN PRODUCE: $400K Sale of Faison Property to Ying Approved
STAUNTON AREA: Seeks to Tap Carmody MacDonald as Bankruptcy Counsel
STORED SOLAR: Trustee Seeks to Tap Verdolino & Lowey as Accountant
TARONIS FUELS: Airgas USA Buying CA Business for $5.9 Million
TELEPHONE AND DATA: Egan-Jones Retains B+ FC Sr. Unsec. Debt Rating
THEOS FEDRO: Trustee Sells San Francisco Property for $6.65M to JS
THREE STAR TRUCKING: Gets OK to Hire Oliver & Cheek as Counsel
TOP LINE: $2.5MM Sale of Substantially All Assets to FDC Approved
TRUSENTIAL LLC: Has Interim Cash Collateral Access Thru Jan 13
VASU CONVENIENCE: Seeks Extension to File Plan to March 28
VERSACE BERTONI: Gets OK to Tap Lewis Brisbois Bisgaard as Counsel
WAKASA LLC: Court OKs Cash Collateral Access Thru Dec 5
WAYNE S. BUNTEN: Trustee's $296K Sale of Concord Asset to Vu OK'd
WB BRIDGE HOTEL: Sale of Brooklyn Property to Secured Creditor OK'd
WESTBANK HOLDINGS: Amends Unsecured Claims Pay Details
WINDSTREAM HOLDINGS: S&P Rates $250MM Super-Senior Term Loan 'B+'
WOLVERINE WORLD: Egan-Jones Retains 'B' FC Sr. Unsecured Ratings
[^] BOOK REVIEW: Performance Evaluation of Hedge Funds
*********
100 ORCHARD: Has Interim Access to Brick Moon's Cash Collateral
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
authorized 100 Orchard Street LLC d/b/a Blue Moon Hotel, to use the
cash collateral of Brick Moon Capital LLC and the U.S. Small
Business Administration, on an interim basis in accordance with the
budget, with a 10% budget.
As previously reported by the Troubled Company Reporter, Brick has
a duly perfected senior lien and security interest in all of the
Debtor's pre-petition assets, including the Debtor's real property,
the Hotel and all room revenues collected by the Hotel.
To perfect its interests in the collateral, Brick filed a UCC-1
financing statement with the New York Secretary of State.
As of the Petition Date, Brick asserts the total amount the Debtor
owes is at least $10 million.
The SBA has a duly perfected junior lien and security interest in
the Debtor's personal property. To perfect its interests in the
Collateral, the SBA filed a UCC-1 financing statement with the New
York Secretary of State.
As of the Petition Date, the SBA asserts the total amount the
Debtor owes is approximately $500,000.
As adequate protection to protect the Lenders from the diminution
in value of the cash collateral, the Lenders are granted (a)
replacement liens and security interests in all of the Debtor's
assets acquired post-petition including cash to the extent that
said liens were valid, perfected and enforceable as of the Petition
Date, subject to (i) the claims of Chapter 11 professionals duly
retained and to the extent awarded pursuant to sections 330 and 331
of the Bankruptcy Code, (ii) United States Trustee fees pursuant to
28 U.S.C. section 1930, and interest pursuant to 31 U.S.C. Section
3717, and (iii) the payment of any allowed claim of any
subsequently appointed chapter 7 trustee to the extent of $10,000;
and will not extend to estate causes of action and the proceeds of
any recoveries of estate causes of action under Chapter 5 of the
Bankruptcy Code.
The Replacement Liens and security interests granted in
post-petition room revenues and cash are automatically deemed
perfected upon entry of the Order without the necessity of the
Lenders taking possession, filing financing statements or other
documents, or taking any other action to validate or perfect the
liens and security interests granted by the Order.
The Court will schedule a final hearing on the matter via video
conference when the Debtor is ready to present a final order to the
court.
A copy of the order is available at https://bit.ly/3AZS3De from
PacerMonitor.com.
About 100 Orchard St. LLC
100 Orchard St. LLC operates a 22-room boutique hotel known as the
"Blue Moon Hotel," located in the lower east side of Manhattan, at
100 Orchard Street. The Hotel is a historical building built in
1879. Beginning in 2002, 100 Orchard redesigned the five-story
tenement and restored the building to function as a stately
eight-story hotel. It was a five-year art preservation and design
project that received an award by National Geographic, acknowledged
by the Historic Districts Council, and written up in 50 major
articles. The Hotel was instrumental in revitalizing commerce south
of Delancey Street.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 22-10358) on March 23,
2022.
In the petition signed by Randy Settenbrino, president and managing
member, the Debtor disclosed $25,341,713 in assets and $11,166,747
in liabilities.
Judge David S. Jones oversees the case.
Scott S. Markowitz, Esq., at Tarter Krinsky and Drogin, LLP is the
Debtor's counsel.
129 N WALNUT: May Use $80,000 in Cash Collateral Thru Jan 2023
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of New York
authorized 129 N Walnut Street LLC to use cash collateral on an
interim basis in accordance with the budget through January 23,
2023.
The Debtor is permitted to pay post-petition expenses of up to
$80,000 and only pay actual and necessary expenses of its operation
as set forth in the budget.
To the extent of the diminution in the value of any interest it has
in rents, Basis Multifamily Finance I LLC, is granted a first
priority lien on (i) all property acquired by the Debtor after the
filing of the case and any proceeds thereof, and (ii) any of the
Debtor's assets not already subject to Basis' alleged security
interest and any proceeds thereof -- in addition to any existing
liens it may hold on the Property and the Rents or otherwise.
As further adequate protection, the Debtor will make payment to
Basis of $27,954, on December 30, which may be paid from the Rents.
Basis will be granted an allowed superpriority administrative
expense claim, pursuant to Section 507(b) of the Bankruptcy Code,
with priority over all administrative expense claims and unsecured
claims against the Debtor, to the extent of the diminution of its
alleged interest in the value of the Rents.
Basis will not have any lien on any avoidance actions under
subchapter 5 of the Bankruptcy Code. Any substitute lien or
adequate protection claim granted will be subordinate to (i)
payment of United States Trustee's fees pursuant to 28 U.S.C. Sec.
1930 (a)(6) plus interest at the statutory rate for any fees not
paid in a timely manner, and any fees payable to the Clerk of the
Bankruptcy Court; and (ii) reasonable fees and expenses of a
Chapter 7 trustee allowable pursuant to 11 U.S.C. section 726 (b)
in an amount not to exceed $10,000.
A copy of the order is available at https://bit.ly/3iuymx5 from
PacerMonitor.com.
About 129 N Walnut Street LLC
129 N Walnut Street LLC owns a 41-unit apartment building in 129 N
Walnut Street LLC. The Property is currently fully occupied. The
Property is the Debtor's sole tangible asset. The Debtor's sole
source of revenue are the rents paid by tenants at the Property.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 22-42104) on September 2,
2022. In the petition signed by Samuel Rosenbaum, managing member,
the Debtor disclosed up to $10 million in both assets and
liabilities.
Judge Elizabeth S. Stong oversees the case.
The Law Offices of Isaac Nutovic is the Debtor's counsel.
129 N WALNUT: Unsecured Creditors Will Get 100% of Claims in Plan
-----------------------------------------------------------------
129 N Walnut Street LLC filed with the U.S. Bankruptcy Court for
the Eastern District of New York a Disclosure Statement for First
Amended Plan of Reorganization dated November 28, 2022.
The Debtor is a limited liability company which owns real property
located at 129 N Walnut Street, East Orange, New Jersey (the
"Property"). The Debtor is 100% owned by Sam Rosenbaum
("Rosenbaum").
The Debtor owns a residential building with 42 apartments located
at 129 North Walnut Street, East Orange, NJ 07017 (the "Property").
The Debtor acquired the Property from Yitzchokk LLC (the "Seller")
by deed dated November 19, 2021. To finance the purchase price of
$5,400,000 and supplement Rosenbaum's advances of more than
$1,000,000, the Debtor obtained a loan (the "Loan") from Basis
Multifamily Capital LLC ("Basis Capital") in the amount of
$4,320,000.
The Loan was secured by a mortgage on the Property, an assignment
of rents and a guaranty provided by Rosenbaum (collectively, the
"Loan Documents"). The Debtor believes the Loan and the Loan
Documents were subsequently assigned to Basis Finance, which
assigned them to Federal Home Loan Mortgage Corporation ("FHLMC")
and that shortly before the commencement of this case, FHLMC re
assigned the Loan and Loan Documents to Basis Finance.
Immediately after the case was commenced, Basis Finance commenced
an action against Rosenbaum on his guaranty in the state court
which is pending. Shortly thereafter Basis Finance filed a motion
to dismiss the bankruptcy case which is still pending. The Debtor
filed a motion for permission to use cash collateral; that motion
is pending. The Debtor obtained permission to borrow up to $200,000
from Rosenbaum; Only $10,000 has been borrowed to date. Rosenbaum
has an administrative claim for that amount in the event the Plan
is confirmed.
Because Rosenbaum represents the Debtor's source for funding the
Debtor's Plan, the Debtor has sought to enjoin Basis from
proceeding against Rosenbaum on his guaranty. A motion for a
preliminary injunction is pending in the Bankruptcy Court. The
Debtor also commenced an action in the Bankruptcy Court against
both of Basis Finance and Old Republic seeking to determine what
amounts may be due to Basis Finance under the Plan and seeking to
hold Old Republic liable under its insurance policy for any amounts
that need to be paid to Basis Finance and for the costs of this
bankruptcy case.
The Debtor's only significant asset is the Property which was
purchased for $5,420,000 approximately 1 year ago. The only other
assets the Debtor has are claims against Basis Finance and Old
Republic.
Class 1 consists of Allowed Secured Claim of the Mortgagee. This
class is not impaired. The Mortgagee has asserted a claim of
$6,131,753.71 as of August 1, 2022 with interest accruing at
$881.58 daily. The Debtor has disputed these charges and will in
any event reinstate Loan. On the Effective Date of the Plan, the
Debtor will reinstate the Loan and pay whatever amount the Court
determines is due to Basis Finance, if any, for any damages or
pecuniary losses it suffered because of alleged defaults of the
Debtor. The Debtor estimates that amount at no more than $150,000.
Class 2 consists of Allowed Unsecured Claims. Class 2 consists of
any unsecured claims. This class is not impaired. The holders of
class 2 claims will receive 100% of their allowed claims. The
Debtor estimates that such claims will approximate no more than
$156,000.
Class 4 consists of Equity Interests in the Debtor held by
Rosenbaum. This class is unimpaired. The holder of the Class 4
Equity Interests will retain his interests.
Prior to the date to be set by the Bankruptcy Court for a hearing
on confirmation of the Plan, Rosenbaum shall cause no less than
$350,000 to be deposited in escrow with Debtor's counsel for
distribution on the Effective Date of the Plan. Rosenbaum's
contribution is contingent on the reinstatement of the Loan and an
injunction against Basis Finance proceeding against Rosenbaum on
his guaranty so long as the Loan does not go into default after
confirmation.
A full-text copy of the Disclosure Statement dated November 28,
2022, is available at https://bit.ly/3H1WFge from PacerMonitor.com
at no charge.
Attorneys for the Debtor:
Isaac Nutovic, Esq.
Law Offices of Isaac Nutovic
261 Madison Avenue, 26th Floor
New York, NY 10016
Tele: (212) 421-9100
Email: inutovic@nutovic.com
About 129 N Walnut Street LLC
129 N Walnut Street LLC owns a 41-unit apartment building in 129 N
Walnut Street LLC. The Property is currently fully occupied. The
Property is the Debtor's sole tangible asset. The Debtor's sole
source of revenue are the rents paid by tenants at the Property.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 22-42104) on September 2,
2022. In the petition signed by Samuel Rosenbaum, managing member,
the Debtor disclosed up to $10 million in both assets and
liabilities.
Judge Elizabeth S. Stong oversees the case.
The Law Offices of Isaac Nutovic is the Debtor's counsel.
208-214 E. 25TH ST: Case Summary & Five Unsecured Creditors
-----------------------------------------------------------
Debtor: 208-214 E. 25th St. LLC
208 E 25th St
New York, NY 10010-3108
Case No.: 22-11610
Business Description: The Debtor is a New York limited liability
company, owning four contiguous residential
apartment buildings located at 208-214 East
25th Street in New York. The Buildings
contain a total of 85 apartments valued at
$30 million.
The Debtor is engaged in activities related
to real estate.
Chapter 11 Petition Date: November 30, 2022
Court: United States Bankruptcy Court
Southern District of New York
Debtor's Counsel: Kevin J. Nash, Esq.
GOLDBERG WEPRIN FINKEL GOLDSTEIN LLP
1501 Broadway 22nd Floor
New York, NY 10036
Tel: (212) 221-5700
Email: knash@gwfglaw.com
Total Assets: $31,684,133
Total Liabilities: $24,320,377
The petition was signed by David Goldwasser as chief restructuring
officer.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/IM4AMZQ/208-214_E_25th_St_LLC__nysbke-22-11610__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's Five Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
1. Hayley Greenberg, Esq. $0
GREENBERG & MEROLA, LLP
2280 Grand Ave Ste 202
Baldwin, NY
11510-3110
2. Internal Revenue Service Taxes $0
Centralized Insolvency Operations
PO Box 7346
Philadelphia, PA
19101-7346
3. Northwind Group $0
489 5th Ave Fl 28
New York, NY
10017-6117
4. NYC Dep't of Finance Real estate $1,569,372
Legal Affairs taxes
345 Adams St Fl 3
Brooklyn, NY
11201-3719
5. NYS Dep't of Taxation Taxes $0
Bankruptcy/Special Procedure
PO Box 5300
Albany, NY
12205-0300
303 INVESTMENTS: Proposes $1.1MM Sale of 3 Elizabeth Properties
---------------------------------------------------------------
303 Investments, Inc., asks the U.S. Bankruptcy Court for the
District of Colorado to approve the sale of the he following pieces
of real property which are vacant lots:
a. 5622 Freddy's Trial Drive, in Elizabeth, Colorado, for
$325,000;
b. 5577 Freddy's Trial Drive, in Elizabeth, Colorado, for
$325,000; and
c. 5437 Freddy's Trial Drive, in Elizabeth, Colorado, for
$450,000.
The Debtor purchases raw land and has homes built on it for sale.
It also purchases land with residential improvements on the land
and fixes and flips the properties. The Debtor's bankruptcy case
was filed because creditor MS Man Debt, LLC filed a lis pendens on
all of its real property holdings, bringing properties sales and
the Debtor’s cash flow to a halt.
The Debtor currently owns, among others, the Properties. It has or
will soon file its Application to employ JS Properties as the real
estate broker to market the Properties and approve the listing
agreement related thereto. The Broker Application will provide
copies of the listing agreements for the Properties.
The Debtor does not have any secured claims that encumber the
Properties. It proposes to list the Properties with the proposed
prices, free and clear of all liens, claims and encumbrances.
Given there are no known secured claims encumbering the Properties,
there is substantial equity in the Properties. The broker is
charging a commission of 3.8%. Closing costs are estimated at
2.2%. Reducing 6% from the Properties listed for $325,000
(assuming they sell for $325,000) will leave approximately $305,500
for the estate. For the Property listed for $450,000, deducting 6%
if the Property sells for $450,000 (assuming it sells for $450,000)
will leave approximately $423,000 for the estate.
It is in the best interest of the Debtor, its estate and its
creditors to sell the Properties.
The Debtor requests authorization to utilize the proceeds from the
sale of the Properties to pay the following:
a. Closing and related costs associated with the sale;
b. Real estate broker fees of 3.8% of the Purchase Price;
c. Real estate taxes, if any;
d. Any secured claims so long as it does not exceed the sale
price.
e. Any remaining amounts will be deposited into the debtor
in possession bank account.
About 303 Investments
303 Investments, Inc., a company in Parker, Colo., filed a
petition
under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. D.
Colo. Case No. 22-14267) on Nov. 1, 2022, with $10 million to $50
million in assets and $500,000 to $1 million in liabilities.
Alison
Goldenberg has been appointed as Subchapter V trustee.
Judge Joseph G. Rosania, Jr. oversees the case.
The Debtor is represented by Aaron A. Garber, Esq., at Wadsworth
Garber Warner Conrardy, P.C.
6200 NE 2ND AVENUE: 4.25% Interest Rate Applies to Benworth Claims
------------------------------------------------------------------
Bankruptcy Judge Robert A. Mark issued an order sustaining in part,
and overruling in part, debtors 6200 NE 2nd Avenue, LLC and
affiliates' Amended Objection to the claims of Benworth Capital
Partners.
On Nov. 1, 2022, the Court entered its Amended Sale Procedures
Order. Pursuant to the Order, the eight Debtors in these
administratively consolidated cases are selling 17 properties
including two parcels owned by the Debtor 5823 NE 2nd Avenue, LLC,
and one parcel owned by the Debtor 6229 NE 2nd Avenue, LLC.
In addition, the Sale Procedures Order provides that "Benworth
Capital Partners, LLC may credit bid its secured claim in an amount
to be determined by the Court prior to the auction."
Benworth services the mortgage debt encumbering the 5823 Properties
and the 6229 Property. The mortgage debt was reduced to final
judgments of foreclosure in state court prior to the filing of the
bankruptcy cases. On March 23, 2022, the state court entered a
Summary Final Judgment of Foreclosure against the 5823 Properties
in the amount of $844,938. On April 27, 2022, the state court
entered a Final Judgment of Foreclosure against the 6229 Property
in the amount of $1,061,867. After the filing of these bankruptcy
cases, Benworth filed two proofs of claim based on the foreclosure
judgments.
The Debtors object to (a) the post-judgment interest rate asserted
by Benworth, (b) the post-judgment attorney's fees asserted by
Benworth, and (c) Benworth's failure to offset rents on the 6229
Property received during the pendency of these bankruptcy cases
against the total indebtedness claimed.
Benworth argues that the judgment unambiguously fixes the
post-judgment interest rate at the 25% default rate payable under
the note. The Debtors contend that the Florida judgment rate of
4.25% applies.
The Court agrees with the Debtors. Had the judgments expressly
stated that the total judgment award would bear interest at a rate
of 25% per annum, the Court would enforce the judgments as written.
But that is not what the judgments state. Likewise, had the notes
expressly stated that the default rate of interest of 25% would
apply to any judgment award, the Court would find that the
judgments bear interest at the rate of 25% per annum. But that is
not what the notes state. The notes are silent regarding the
interest rate applicable post-judgment.
The Court finds the interest rate language in the judgments
ambiguous. As such, the Court interprets the judgments to reach the
result mandated by Florida law. In the absence of express language
to the contrary in either the note or the judgment, the Court
determines that the post-judgment interest rate applicable to the
Benworth Claims is 4.25%.
The Debtors also object to Benworth's claim for attorney's fees
incurred after entry of the state court judgments. The Debtors
argue that the attorney's fee provisions do not support an award of
fees incurred after entry of the foreclosure judgments because the
word "collection" is not contained in the provisions. The Court
disagrees with the Debtors. The fee provisions refer to bankruptcy
proceedings which, like here, often occur after entry of a
foreclosure judgment. Therefore, Benworth is entitled to
post-judgment fees under the loan documents, the Court says.
With regard the Debtors' objection to Benworth's failure to offset
rents on the 6229 Property, the Parties agree that the total amount
of Benworth's claim in the 6229 Case should be reduced by $5,400 in
rents that Benworth received after entry of the foreclosure
judgment. Therefore, Benworth's claim in the 6229 Case must be
reduced by this amount and by any additional post-judgment rents it
receives prior to the auction.
For credit-bidding purposes in the auction sale of the 6229
Property, Benworth's claim in the 6229 Case will be comprised of
(1) the 6229 Judgment; (2) interest at 4.25% from the date of the
judgment through the date of the auction; and (3) $64,733 in
post-judgment attorney's fees. The total amount must then be
reduced by the amount of rent collected post-judgment on the 6229
Property. The post-judgment interest must also be reduced slightly
to account for the rents that reduced the Judgment amount as
received.
For credit-bidding purposes in the auction sale of the 5823
Properties, Benworth's claim in the 5823 Case will be comprised of
(1) the 5823 Judgment; (2) interest at 4.25% from the date of the
Judgment through the date of the auction; and (3) $55,549 in
post-judgment attorney's fees.
A full-text copy of the Order dated Nov. 21, 2022, is available at
https://tinyurl.com/4zb5ecuv from Leagle.com.
About 6200 NE 2nd Avenue
6200 NE 2nd Avenue, LLC, and its affiliates are Florida limited
liability companies, which, together, own 14 parcels of real
property in the Little Haiti/Upper East Side neighborhood largely
on the Northeast 2nd Avenue corridor of Miami. Several of these
properties are not generating income largely as a result of the
COVID-19 pandemic, and after certain properties were gutted in
anticipation of renovation and the failure of an investor to raise
and invest sufficient funds to complete the renovations.
6200 NE 2nd Avenue and its affiliates sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Lead Case No.
22-10385) on Jan. 18, 2022. In the petition signed by Mallory
Kauderer, manager, 6200 NE 2nd Avenue disclosed up to $50,000 in
assets and up to $10 million in liabilities.
Judge Robert A. Mark oversees the cases.
Steven Beiley, Esq., at Aaronson Schantz Beiley P.A., is the
Debtors' legal counsel.
A AND N DIAMOND: Wins Interim Cash Collateral Access
----------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida,
Jacksonville Division, authorized A and N Diamond, Inc. to use the
cash collateral of Suntrust/Truist Bank on an interim basis in
accordance with the budget.
The Debtor requires the use of cash collateral to continue
operating the business and pay salaries.
As of the Petition Date, the Debtor was indebted to the Lender in
the approximate amount of $1.326 million. The Debtor's obligation
is evidenced by a Promissory Note, Security Agreement, Financing
Statement, and Chattel Mortgage executed on April 18, 2018,
pursuant to which the Lender provided funds to the Debtor.
As adequate protection, the Lender is granted a replacement lien to
the same nature, priority, and extent that the Lender may have had
immediately prior to the date that this case was commenced nunc pro
tunc to the Petition Date. Further, the Lender is granted a
replacement lien and security interest on property of the
bankruptcy estate to the same extent and priority as that which
existed pre-petition on all of the cash accounts, accounts
receivable and other assets and property acquired by the Debtor's
estate or by the Debtor on or after the Petition. The replacement
lien in the Post-Petition Collateral will be deemed effective,
valid and perfected as of the Petition Date, without the necessity
of filing with any entity of any documents or instruments otherwise
required to be filed under applicable non-bankruptcy law.
The Debtor is ordered to pay Adequate Protection payments as
follows:
a. $0 per month to the Lender commencing November 1, 2022, and
on the 1st of the month thereafter or further Court Order;
b. All other UCC-1 receivable lenders will receive no adequate
protection at this time.
As additional adequate protection of the Lender's interest in the
cash collateral, the Debtor will (a) maintain all necessary
insurance coverage on the Lender's collateral and under no
circumstances will the Debtor allow its insurance coverage to
lapse, (b) continue to pay such monthly insurance payment in a
timely manner, and (c) within two days of the request of the
Lender, the Debtor will provide to the Lender's counsel a written
statement supported by evidence of the Debtor's compliance with the
foregoing.
The Debtor's authority to use the cash collateral will terminate
immediately and upon the earlier of (a) a Court order; (b) the
conversion of the case to a Chapter 7 case or the appointment of a
Chapter 11 trustee without the consent of the Lender; (c) the entry
of an Order that alters the validity or priority of the replacement
liens granted to the Bank; (d) the Debtor ceasing to operate all
or substantially all of its business; (e) the entry of an order
granting relief from the automatic stay that allows any entity to
proceed against any material assets of the Debtor that constitute
cash collateral; (f) the entry of an Order authorizing a security
interest under section 364(c) or 364(d) of the Bankruptcy Code in
the collateral to secure any credit obtained or debt incurred that
would be senior to or equal to the replacement lien; or (g) the
dismissal of the Chapter 11 case.
A continued hearing on the matter is set for December 6 at 9:30
a.m.
A copy of the order is available at https://bit.ly/3GVTuXg from
PacerMonitor.com.
About A and N Diamond, Inc.
A and N Diamond, Inc. owns express lube and car wash business
located in Brunswick, Ga., valued at $588,700. The Debtor sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
M.D. Fla. Case No. 22-01859) on September 14, 2022. In the petition
signed by Elia Hawara, president, the Debtor disclosed $598,773 in
assets and $2,369,348 in liabilities.
Judge Jacob A. Brown oversees the case.
Brian K. Mickler, Esq., at the Law Offices of Micker and Mickler,
LLP, is the Debtor's counsel.
ACETO CORP: Accounting Docs May Be Used in Trial, Court Says
------------------------------------------------------------
In the adversary case styled KAVOD PHARMACEUTICALS LLC (f/k/a
RISING PHARMACEUTICALS, LLC, f/k/a RISING PHARMACEUTICALS, INC.)
and TRI HARBOR HOLDINGS CORPORATION (f/k/a ACETO CORPORATION),
Plaintiffs, v. SIGMAPHARM LABORATORIES, LLC, Defendant, Adv. Pro.
No. 19-2053 (VFP), (Bankr. D.N.J.), Bankruptcy Judge Vincent F.
Papalia denies Sigmapharm Laboratories, LLC's motion to exclude
documents created by the Plaintiffs post-litigation.
Sigmapharm asks the Court to preclude the Plaintiffs Kavod
Pharmaceuticals LLC, f/k/a Rising Pharmaceuticals, LLC f/k/a Rising
Pharmaceuticals, Inc., and Tri Harbor Holdings Corp., f/k/a Aceto
Corporation from introducing at trial certain documents related to
accountings or to accounting controls that were created by
Plaintiffs after the commencement of litigation -- spreadsheets
created or edited after March 23, 2018. That date refers to the
Complaint that Sigmapharm filed against Rising and Aceto on March
23, 2018 in the U.S. District Court for the Eastern District of
Pennsylvania, Case No. 2:18-cv-1238.
Specifically, Sigmapharm seeks to preclude the Plaintiffs from
introducing at trial: (i) a document which purports to list various
'controls' within the Plaintiffs' accounting processes --
Sigmapharm identifies this document only as created in June 2018
and last edited in 2018 (the "Controls Document"); and (ii) a
sequence of large Excel Spreadsheets identified as "including, but
. . . not limited to: RISING_SP_00068638, RISING_SP_00090833,
RISING_SP_00049250, RISING_SP_00085208, RISING_SP_0000002,
RISING_SP_0000003, and RISING_SP_00000089." Sigmapharm states the
Controls Document and the Spreadsheets should be excluded on the
grounds that they were created post-litigation and are hearsay not
subject to any exception under Fed. R. Evid. 803.
The Plaintiffs argue that (a) the Motion is procedurally defective
-- for failure to identify adequately the Controls Document and
Spreadsheets that Sigmapharm seeks to exclude; (b) the Motion is
premature, the admissibility of the Controls Document and
Spreadsheets should be subject to examination of witnesses at
trial; and (c) the Controls Document and Spreadsheets are
admissible in any event under the business records exception to
hearsay.
Sigmapharm argues the Controls Document and Spreadsheets are not
"business records" subject to the protection of Fed. R. Evid.
803(6) because they were created for the purpose of litigation.
The Court finds and concludes that Sigmapharm has failed to reach
the initial threshold of adequately identifying and producing the
Control Documents and the Spreadsheets, describing precisely when,
how and by whom they were produced. The Court has located and
reviewed the specifically identified documents and, on the
information provided, cannot determine whether these documents
should be excluded as hearsay or are admissible as business
records. The Court notes that the evidently technical nature of the
Spreadsheets makes them amenable to testing at trial through the
examination and cross-examination of the appropriate witnesses --
after which the Court can rule on their admissibility and weight.
Additionally, the Plaintiffs claim that the Controls Document cited
by Sigmapharm was created by Rising's outside auditors, BDO USA
LLP, so that it does not fall within the general category of
documents Sigmapharm seeks to exclude as it was not created by the
Debtors. Thus, Sigmapharm's Motion can be denied on these grounds
alone.
The Court further determines that, in any event, there is no
blanket rule that precludes the use of documents created
post-litigation. As noted by the Plaintiffs, Sigmapharm has
included with its potential Trial Exhibits over 100 documents dated
after the commencement of this litigation. Thus, undermining
Sigmapharm's argument that all such documents are inadmissible and
untrustworthy, demonstrates the potential unfairness and
impracticality of such a rule.
Finally, the Plaintiffs claim that the Spreadsheets were created
and maintained by the Plaintiffs in the ordinary course of their
business, an argument that Sigmapharm vigorously disputes. The
Court finds that this issue requires a full evidentiary record to
determine whether the Spreadsheets and the electronic records on
which they are based (according to Plaintiffs) are admissible as
business records or otherwise.
Accordingly, the Court denies Sigmapharm's Motion in limine to
exclude the Controls Document and the Spreadsheets, without
prejudice to Sigmapharm's right to seek to exclude these documents
during trial.
A full-text copy of the Memorandum Opinion dated Nov. 22, 2022, is
available at https://tinyurl.com/3vwzntc7 from Leagle.com.
About Aceto Corporation
ACETO Corporation, incorporated in 1947, was focused on the global
marketing, sale and distribution of Human Health products (finished
dosage form generics and nutraceutical products), Pharmaceutical
Ingredients (pharmaceutical intermediates and active pharmaceutical
ingredients) and Performance Chemicals (specialty chemicals and
agricultural protection products). ACETO distributed over 1,100
chemical compounds used principally as finished products or raw
materials in the pharmaceutical, nutraceutical, agricultural,
coatings, and industrial chemical industries.
Aceto and eight affiliates sought Chapter 11 protection (Bankr.
D.N.J. Lead Case No. 19-13448) on Feb. 19, 2019. ACETO disclosed
assets of $753,159,000 and liabilities of $702,848,000 as of Dec.
31, 2018.
The Hon. Vincent F. Papalia is the case judge.
The Debtors tapped Lowenstein Sandler LLP as counsel; Simmons &
Simmons as foreign counsel; PJT Partners LP as an investment banker
and financial advisor; AP Services LLC as restructuring advisor;
and Prime Clerk LLC as claims and noticing agent.
The U.S. Trustee, on Feb. 28, 2019, appointed five members to the
official committee of unsecured creditors. Counsel for the
Committee is Stroock & Stroock & Lavan LLP and Porzio, Bromberg &
Newman, P.C. Houlihan Lokey Capital, Inc., is the Committee's
investment banker. GlassRatner Advisory & Capital Group, LLC, as
its financial advisor.
During the bankruptcy, Aceto sold its chemicals business to an
affiliate of New Mountain Capital LLC for about $422 million, along
with the assumption of certain liabilities and payment of cure
costs. The Debtor used a portion of the proceeds to fully repay
$234.6 million of the outstanding principal, unpaid interest and
fees owed to lenders under two credit agreements, while it used
another $2.6 million of the proceeds to repay a mortgage loan from
JPMorgan Chase Bank.
Aceto also closed the sale of its unit Rising Pharmaceuticals Inc.
to Shore Suven Pharma Inc. for about $15 million.
On June 17, 2019, the Debtors filed their Plan of Liquidation and
related Disclosure Statement. On July 26, 2019, the Bankruptcy
Court entered an order approving the Disclosure Statement. On
September 18, 2019, the Bankruptcy Court entered an order
confirming the Plan. On October 1, 2019, the Effective Date of the
Plan occurred, and the Plan was consummated.
Aceto changed its name to Tri Harbor Holdings Corporation.
ACETO CORP: Allowed to Present Evidence of Lost Profits
-------------------------------------------------------
In the adversary case styled KAVOD PHARMACEUTICALS LLC (f/k/a
RISING PHARMACEUTICALS, LLC, f/k/a RISING PHARMACEUTICALS, INC.)
and TRI HARBOR HOLDINGS CORPORATION (f/k/a ACETO CORPORATION),
Plaintiffs, v. SIGMAPHARM LABORATORIES, LLC, Defendant, Adv. Pro.
No. 19-2053 (VFP), (Bankr. D.N.J.), Bankruptcy Judge Vincent F.
Papalia denies Sigmapharm Laboratories, LLC's motion to preclude
evidence of lost profits, without prejudice to the rights of both
parties to prove at trial that the Plaintiffs' damages claim for
lost profits stopped accruing at any time prior to or after the
deemed Feb. 18, 2019 Rejection Date of the Agreement.
Sigmapharm asks the Court to preclude the Plaintiffs Kavod
Pharmaceuticals LLC, f/k/a Rising Pharmaceuticals, LLC f/k/a Rising
Pharmaceuticals, Inc., and Tri Harbor Holdings Corp., f/k/a Aceto
Corporation from presenting evidence at trial of lost profits under
the parties' June 22, 2006 Master Product Development and
Collaboration Agreement "beyond the date [Rising-Aceto] rejected
the Master Agreement and sold its assets to Shore Suven."
The dispute between the Parties arises from a June 22, 2006
Agreement -- for producing, marketing and sharing profits from the
sale of pharmaceuticals. Other details concerning the Agreement and
the relationship between the Parties are included in the Court's
Oct. 5, 2021 Opinion that granted in part and denied in part the
Parties' separate motions for summary judgment.
According to the Court, the Parties' arguments are complicated
because the duration of and grounds for lost profits sought by the
Plaintiffs are not yet clear. Sigmapharm complains that Plaintiffs
seek a "windfall" and "damages in perpetuity." The Parties dispute
how these milestones affect the accrual of any damages due
Plaintiffs:
March 23, 2018 -- Sigmapharm purported to terminate the June
22, 2006 Agreement in a manner that breached its Termination
Provisions. The parties in every event appear to have stopped
working together by this date.
February 19, 2019 -- The Debtors filed voluntary Chapter 11
petitions, appear to have generally ceased ongoing operations at
that time and began to quickly liquidate their assets.
April 19, 2019 -- The Plaintiffs' sale of pharmaceutical
business to Shore Suven closed (with no assumption and assignment
of the Agreement).
October 1, 2019 -- Effective Date of Liquidating Plan and of
deemed rejection of any executory Contract that was not previously
or otherwise assumed.
The Parties dispute: (i) whether the Agreement was executory and
therefore capable of assumption or rejection under the Bankruptcy
Code; (ii) if the Agreement is executory, whether any breach of
contract damages are limited by the effective date of the
Agreement's rejection (that is Oct. 1, 2019); and (iii) whether
Plaintiffs damages are limited by various other dates [i.e, March
23, 2018, when Sigmapharm terminated the Agreement; Feb. 19, 2019
when the Debtors filed for bankruptcy protection and immediately
began liquidating their assets; and/or April 19, 2019, when the
Shore Suven Sale closed.] In contrast, the Plaintiffs assert that
their damages are not limited by any of those dates and extend to
the useful life of the products subject to the Agreement (and
perhaps beyond).
The Court disagrees with Plaintiffs' blanket statement of law that
section 365 does not apply to contracts that were terminated
prepetition. As is noted by Sigmapharm, whether a contract is
terminated prepetition is not determinative in deciding whether the
contract is executory.
Based on these continuing obligations of both Parties under the
Agreement, and the Parties' competing claims that these provisions
were materially breached by the other, resulting in millions of
dollars of damages, the Court determines that the Agreement was and
remains executory. As a result, under 11 U.S.C. Section 365(g)(1),
the Agreement is deemed breached as of the date immediately before
the Debtors' Petition Date. Thus, the latest date by which the
Plaintiffs breached the Agreement was actually Feb. 18, 2019 (the
"Rejection Date"), rather than the Oct. 1, 2019 date that seems to
have been adopted by the parties.
The Court disagrees with Sigmapharm argument that the Plaintiffs
cannot obtain benefits under a contract it rejected, indicating
that this is "undisputed law." The Court rules that the Debtors'
deemed rejection of the Agreement under Section 365 does not result
in termination of the agreement or necessarily limit the
Plaintiffs' damages claims -- it does not automatically eliminate
the damage claims the Plaintiffs have for any prepetition breaches
by Sigmapharm. Instead, it essentially leaves the Parties where
they were before the bankruptcy filing, with competing breach
claims against each other.
The Court finds and concludes that the Agreement is executory and
was therefore deemed rejected as of the Oct. 1, 2019 Effective Date
of the Debtors' Plan and breached as of the Feb. 18, 2019 -- deemed
Rejection Date. However, that is not the end of the inquiry as it
does not definitively or finally determine when any of the
Plaintiffs' affirmative damage claims stop accruing. The questions
of whether and when the alleged damages resulting from the
Plaintiffs' affirmative claims stop accruing is a mixed question of
fact and law that will have to await the trial of this action. That
date could be earlier or later than the Rejection Date, depending
on the results of trial, the Court adds.
A full-text copy of the Memorandum Opinion dated Nov. 22, 2022, is
available at https://tinyurl.com/bdfd232j from Leagle.com.
About Aceto Corporation
ACETO Corporation, incorporated in 1947, was focused on the global
marketing, sale and distribution of Human Health products (finished
dosage form generics and nutraceutical products), Pharmaceutical
Ingredients (pharmaceutical intermediates and active pharmaceutical
ingredients) and Performance Chemicals (specialty chemicals and
agricultural protection products). ACETO distributed over 1,100
chemical compounds used principally as finished products or raw
materials in the pharmaceutical, nutraceutical, agricultural,
coatings, and industrial chemical industries.
Aceto and eight affiliates sought Chapter 11 protection (Bankr.
D.N.J. Lead Case No. 19-13448) on Feb. 19, 2019. ACETO disclosed
assets of $753,159,000 and liabilities of $702,848,000 as of Dec.
31, 2018.
The Hon. Vincent F. Papalia is the case judge.
The Debtors tapped Lowenstein Sandler LLP as counsel; Simmons &
Simmons as foreign counsel; PJT Partners LP as an investment banker
and financial advisor; AP Services LLC as restructuring advisor;
and Prime Clerk LLC as claims and noticing agent.
The U.S. Trustee, on Feb. 28, 2019, appointed five members to the
official committee of unsecured creditors. Counsel for the
Committee is Stroock & Stroock & Lavan LLP and Porzio, Bromberg &
Newman, P.C. Houlihan Lokey Capital, Inc., is the Committee's
investment banker. GlassRatner Advisory & Capital Group, LLC, as
its financial advisor.
During the bankruptcy, Aceto sold its chemicals business to an
affiliate of New Mountain Capital LLC for about $422 million, along
with the assumption of certain liabilities and payment of cure
costs. The Debtor used a portion of the proceeds to fully repay
$234.6 million of the outstanding principal, unpaid interest and
fees owed to lenders under two credit agreements, while it used
another $2.6 million of the proceeds to repay a mortgage loan from
JPMorgan Chase Bank.
Aceto also closed the sale of its unit Rising Pharmaceuticals Inc.
to Shore Suven Pharma Inc. for about $15 million.
On June 17, 2019, the Debtors filed their Plan of Liquidation and
related Disclosure Statement. On July 26, 2019, the Bankruptcy
Court entered an order approving the Disclosure Statement. On
September 18, 2019, the Bankruptcy Court entered an order
confirming the Plan. On October 1, 2019, the Effective Date of the
Plan occurred, and the Plan was consummated.
Aceto changed its name to Tri Harbor Holdings Corporation.
AG FOODS LLC: Taps Mac Restructuring as Financial Advisor
---------------------------------------------------------
AG Foods, LLC received approval from the U.S. Bankruptcy Court for
the District of Arizona to employ Mac Restructuring Advisors, LLC
as its financial advisor.
The firm's services include:
a. reviewing and analyzing the Debtor's cash liquidity and
assist its management in identifying areas of improvement;
b. providing financial advice and assistance to the Debtor in
developing a plan of reorganization;
c. attending meetings with the Debtor, the Debtor's counsel,
creditors, parties in interest, the United States Trustee's Office,
and any committees that may be appointed in the Debtor's Chapter 11
case;
e. providing testimony, as necessary, in any proceeding before
the bankruptcy court;
f. being available to the Debtor's managing member and its
bankruptcy counsel regarding the services to be provided;
g. assisting the Debtor in connection with financial issues,
including assistance in the preparation of reports and as liaison
and in negotiations with creditors; and
h. driving, coordinating and guiding negotiations with lenders,
as necessary.
The firm's professionals will be billed at their standard hourly
rate of $395.
As disclosed in court filings, Mac Restructuring is a
"disinterested person" within the meaning of Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Edward M. Burr
Mac Restructuring Advisors, LLC
10191 E Shangri La Rd
Scottsdale, AZ 85260
Tel: (602) 418-2906
Email: Ted@MacRestructuring.com
About AG Foods LLC
AG Foods, LLC is a family-owned and operated restaurant in
Prescott, Ariz.
AG Foods filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. D. Ariz. Case No. 2-05750) on Aug. 29,
2022. In the petition signed by its manager, George A. Singh, the
Debtor listed $100,000 to $500,000 in assets and $1 million to $10
million in liabilities.
Judge Eddward P Ballinger Jr. presides over the case.
Thomas H. Allen, Esq. at Allen Barnes & Jones, PLC and Mac
Restructuring Advisors, LLC serve as the Debtor's legal counsel and
financial advisor, respectively.
ALBERTO JULIAN PEREZ: $28K Sale of 2017 Ford F-150 to CarMax Okayed
-------------------------------------------------------------------
Judge Robert A. Mark of the U.S. Bankruptcy Court for the Southern
District of Florida authorized Alberto Julian Perez's sale of
right, title, and interest in 2017 Ford F-150 to CarMax Enterprises
Services for at least $28,050.
The Sale is " 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.
The proceeds of such sale of the Vehicle will be used to pay the
amount owing for the Auto Loan and the costs associated with the
transaction, and the remaining balance may be used to purchase a
replacement vehicle and to pay the costs associated with such
purchase. Any remaining proceeds after paying the Auto Loan,
purchasing a replacement vehicle, and paying any associated costs
will be deposited into the Debtor's DIP bank account.
The 14-day stay otherwise imposed by Fed. R. Bankr. P. 6004(h) is
waived in respect of the transaction.
A hearing on the Motion was held on Nov. 10, 2022 at 11:30 a.m.
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: Court OKs Deal on Cash Collateral Access
----------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California
authorized Alcaraz Catering, Inc. to use cash collateral on an
interim basis in accordance with the budget through February 7,
2023.
The Debtor is permitted to use cash collateral to pay ordinary and
necessary expenses to operate the Debtor's business.
The Debtor entered into cash collateral stipulations with the U.S.
Small Business Administration and Prime Alliance Bank.
The Debtor agree to timely pay the SBA and Prime their respective
adequate protection payments.
The SBA and Prime are granted replacement liens in the Debtor's
assets, save for any Chapter 5 causes of action, 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.
A hearing on the matter is set for February 7 at 2 p.m.
A copy of the order is available at https://bit.ly/3ufGdkF from
PacerMonitor.com.
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.
ALLENA PHARMACEUTICALS: Selling Centrifuge & Accessories for $250K
------------------------------------------------------------------
Allena Pharmaceuticals, Inc., asks the U.S. Bankruptcy Court for
the District of Delaware to authorize it:
a. to enter into an agreement with Olon spa. for the private
sale of a GEA PFS300-06-777 Centrifuge, along with two accessories,
an Almatec Biocore 40 air-operated, double-diaphragm solids
ejection pump and a GEA Control Panel IP65 Design, for $250,000,
pursuant to the terms of their Equipment Purchase and Sale
Agreement; and
b. to pay the prepetition claim of GEA Mechanical Equipment
US, Inc. or one of its affiliates, the supplier of the Centrifuge
and the Accessories, to whom there are certain prepetition amounts
that must be paid before the Sale can be consummated.
A hearing on the Motion is set for Dec. 6, 2022, at 9:30 a.m.
Prior to the filing of the Chapter 11 Case, the Debtor undertook an
analysis of its assets, including its scientific equipment, in
consideration of its decision to terminate the development of the
Reloxaliase program and subsequent suspension of the development of
ALLN-346. As part of this wind-down, it sought to maximize the
value of assets that were no longer needed for its business
operations.
Based on its analysis, the Debtor determined that it would be in
the best interest of its estate and its creditors to sell the
Centrifuge and the Accessories because they were not necessary for
its continued operations. Instead, a sale of the Centrifuge and
the Accessories presented an opportunity to recoup a significant
financial recovery.
The Centrifuge is a model PFS300-06-777 centrifuge, with
self-desludging capabilities, manufactured by GEA in Germany. The
Accessories, the Ejection Pump and the Control Panel, likewise, are
uniquely paired with the Centrifuge and integral to its function.
The Ejection Pump facilitates the separation and removal of solids
as the Centrifuge runs and the Control Panel provides the user
interface. The Centrifuge was ordered in early 2021 and was
completed a little over a year later. It currently rests at
GEA’s manufacturing facility in Germany.
The Debtor made installment payments while the Centrifuge and the
Accessories were being manufactured, however, they are not free and
clear of any claims. A balance of $88,290 remains outstanding to
GEA and must be paid before GEA will release the Centrifuge and the
Accessories for delivery to Olon. This outstanding balance is
comprised of $53,990 for the Centrifuge and the Accessories and
$34,300 for their storage.
In April 2022, the Debtor contacted Olon to inquire about its
interest in purchasing the Centrifuge and the Accessories. It
targeted Olon because Olon's facility was intended to be the
original destination of the Centrifuge and the Accessories. Prior
to the Debtor’s wind-down and subsequent Chapter 11 Case, the
Centrifuge and the Accessories were to be owned by the Debtor but
installed at Olon’s facility for use on the production of
materials for its research and clinical studies. Thus, the Debtor
believed that Olon
could utilize such unique equipment and Olon could be a potential
purchaser.
As a result of these efforts, the Debtor and Olon agreed to the
terms of the Sale in principle in late July, 2022, and the terms
were then memorialized in the Purchase Agreement in early August
2022. However, due to delays among the parties, the Purchase
Agreement was not executed and the Sale was not able to close
before the Petition Date. The parties now contemplate closing the
Sale (pending the Court's entry of the Sale Order) following the
Dec. 6, 2022 hearing.
Pursuant to the terms of the Purchase Agreement, Olon will pay the
Debtor $250,000 for the Centrifuge and the Accessories. The Debtor
believes that this process resulted in obtaining maximal value for
the Centrifuge and the Accessories, as efficiently as possible,
while minimizing the continued accrual of administrative expenses,
all on the best possible terms. However, it will carefully
consider any offer for the Centrifuge and the Accessories that the
Debtor reasonably believes may be a higher or better offer than the
transaction contemplated by the Purchase Agreement.
The Debtor seeks relief pursuant to Bankruptcy Rule 6004(h).
A copy of the Purchase Agreement is available at
https://tinyurl.com/azcjn864 from PacerMonitor.com free of charge.
The Purchaser:
OLON SPA.
Strada Rivoltana, km 6/7,
20053 Rodano, Italy
Attn: Vittorio Cavagnera
E-mail: VCavagnera@olonspa.it
About Allena Pharmaceuticals, Inc.
Allena is a pre-commercial clinical biopharmaceutical company
dedicated to discovering, developing and commercializing
first-in-class, oral biological therapeutics to treat patients
with rare and severe metabolic and kidney disorders such as gout
and kidney stones.
Allena Pharmaceuticals, Inc. filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Del.
Case No. 22-10842) on Sep. 2, 2022. The petition was signed by
Matthew Foster as chief restructuring officer. At the time of
filing, the Debtor estimated $14,368,000 in assets and
$3,455,000 in liabilities.
The Hon. Karen B. Owens presides over the case.
Matthew B. McGuire, Esq. at LANDIS RATH & COBB LLP represents the
Debtor as counsel.
APEX SIERRA: Wins Cash Collateral Access Thru Jan 2023
------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Texas, Fort
Worth Division, authorized Apex Sierra Hermosa TX, LP to use cash
collateral on an interim basis until the earlier of January 31,
2023, or the entry of an order dismissing the case.
The Debtor is permitted to use cash collateral in accordance with
the budget, with a 10% variance.
On May 28, 2019, The Bancorp Bank, a Delaware state-chartered bank,
as Original Lender, made a loan of approximately $7.1 million to
the Debtor. The Loan is evidenced by, among other instruments, the
Promissory Note dated as of May 28, 2019, executed by the Borrower
in favor of the Original Lender in the original principal sum of
$7,099,600. The Loan is also evidenced by the Loan Agreement dated
as of May 28, 2019, by and between the Borrower and the Original
Lender.
The Loan is secured by, among other things: (i) the Deed of Trust,
Assignment of Leases and Rents, Security Agreement and Fixture
Filing, dated as of May 28,2019, executed by the Borrower, as
trustor, to George D. Barnett, as trustee, for the benefit of the
Original Lender, as beneficiary; and (ii) the Assignment of Leases
and Rents, dated as of May 28, 2019, executed by the Borrower, as
assignor, to the Original Lender, as assignee. The Deed of Trust
was recorded on May 31, 2019, as Document Number D219116596 in the
Recorder's Office of the County Clerk of Tarrant County, Texas, The
Assignment of Rents was also recorded in the Official Records on
May 31,2019, as Document No. D219116597.
Effective as of September 26, 2019, the Original Lender assigned
the Loan Documents to Wilmington Trust, National Association, as
Trustee for the registered holders of The Bancorp Commercial
Mortgage 2019-CRE6 Trust, Commercial Mortgage Pass-Through
Certificates, pursuant to: (i) the Assignment of Deed of Trust,
Assignment of leases and Rents, Security Agreement and Fixture
Filing, recorded in the Official Records on October 31, 2019, as
Document No. D219249985; and (ii) the Assignment of Assignment of
Leases and Rents, recorded in the Official Records on October 31,
2019, as Document No. D219249986.
The Loan matured by its terms on June 9, 2022, and the failure to
pay the same upon maturity is an Event of Default.
On August 22, 2022, Wilmington Trust, through its counsel, wrote a
letter to the Borrower providing formal notice to the Borrower of
its Events of Default, and demanding all amounts due under the
Loan. Since receiving the Demand Letter, the Borrower has failed to
pay all amounts due under the Loan Documents. Accordingly, as of
October 13, 2022, the Lender contends that due to the maturity of
the Loan, at least $7.285 million in principal, interest, late
fees, tax and reserves, default interest, advances, attorneys1 fees
and other costs and expenses remains due and owing.
Due to the Events of Default under the Loan Documents, Wilmington
Trust commenced a non-judicial foreclosure on the Property and
scheduled the same for the first Tuesday in December 2022 but the
Debtor commenced the case before that date.
Beginning January 15, 2023, the Debtor will remit to Wilmington
Trust the approximate equivalent of monthly interest payments at
the non-default rate of interest as set forth in the Loan Documents
and the Budget, with subsequent monthly payments due no later than
the 15th day of each subsequent month. The Lender will provide the
Debtor with the amount to be paid and the calculation thereof
promptly following the last day of the month.
As adequate protection, Wilmington Trust is granted replacement
lien in the Debtor's assets generated postpetition of the same type
and class that comprise the Lender's prepetition collateral to the
extent necessary to prevent diminution in Lender's prepetition
collateral securing the Loan resulting from the Debtor' use of the
Lender's prepetition collateral.
To the extent the Replacement Lien is determined by the Bankruptcy
Court to be inadequate to provide adequate protection to Wilmington
Trust, and the Lender suffers a loss by reason of the Debtor's use
of cash collateral, the Lender will have a super-priority claim
pursuant to Section 507(b) of the Bankruptcy Code.
A copy of the order is available at https://bit.ly/3AWAEvr from
PacerMonitor.com.
About Apex Sierra Hermosa TX, LP
Apex Sierra Hermosa TX, LP is a Single Asset Real Estate. The
Debtor sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. N.D. Tex. Case No. 22-42638) on November 1, 2022. In
the petition filed by Aron Puretz, representative of general
partner, the Debtor disclosed up to $50 million in assets and up to
$10 million in liabilities.
Judge Mark Mullin oversees the case.
Eric A. Liepins, Esq., is the Debtor's legal counsel.
ARA MACAO: Trustee's Sale of Belize Property for $5.8M to Song OK'd
-------------------------------------------------------------------
S. Cary Forrester, the appointed trustee in the Chapter 11 case of
Ara Macao Holdings, LP, received approval from the U.S. Bankruptcy
Court for the District of Arizona to sell approximately 616.5 acres
of land on the Placencia Peninsula, Stann Creek District, Belize,
CA, and any and all rights, powers, and privileges appurtenant to
the Land, to Jisheng Song, or his nominee for the cash purchase
price of $5.8 million.
The Land is more fully described as follows: All those pieces or
parcels of land being Block A comprising 381.014 acres, Block B
comprising 134.336 acres, Block C comprising 58.249 acres and Block
D comprising 42.906 acres situated South of Riversdale in the Blair
Atoll area on the Placencia Peninsula, Stann Creek District of
Belize in name of Mackinnon Belize Land & Development Limited.
The Trustee is authorized to execute and deliver all documents and
perform all acts necessary or desirable to consummate the
transactions contemplated by the Purchase Contract.
The Sale is free and clear of all pledges, liens, security
interests, encumbrances, claims, charges, options, and interests on
and/or against the Property, with all such liens, claims, and
interests to attach to the proceeds of sale with the exception of
the amounts owing to Barrow & Williams and Ronald Deaton, which
will be paid at close of escrow.
The Court approved the payment of a real estate commission to
Cushman & Wakefield Iowa Commercial Advisors equal to 4% of the
gross purchase price, and Cushman will share the commission with
the Buyer's broker, Boris Mannsfeld & Associates (BMA). The
commission is to be paid at the close of escrow.
The payment of a finder's fee to BMA equal to 4% of the gross
purchase price is approved, with such commission to be paid at the
close of escrow.
The Court waived the 14-day stay provided by Bankruptcy Rule
6004(h).
A hearing on the Motion was held on Nov. 10, 2022, at 10:30 a.m.
About Ara Macao Holdings
Ara Macao Holdings, L.P. provides real estate development
services.
On April 6, 2018, an involuntary Chapter 11 petition was filed
against Ara Macao Holdings (Bankr. D. Ariz. Case No. 18-03615).
The
petitioning creditors are KB Partners, Inc., Christopher de
Sibert,
Gary Nitsche, Daniel Dorgan, Richard Umbach and Edgewater
Resources, LLC. They are represented by Patrick A Clisham, Esq.,
at
Engelman Berger, P.C.
On May 8, 2018, the involuntary proceeding was converted to a
voluntary Chapter 11 case (Bankr. D. Ariz. Case No. 18-03615).
Judge Paul Sala oversees the case. Ara Macao Holdings hired Burch
& Cracchiolo, P.A. as its bankruptcy counsel.
The U.S. Trustee for Region 14 appointed an official committee of
unsecured creditors in Ara Macao Holdings' bankruptcy case. The
committee is represented by Engelman Berger, P.C.
S. Cary Forrester is the Chapter 11 trustee appointed for Ara
Macao
Holdings. The trustee hired Forrester & Worth, PLLC as bankruptcy
counsel and Snell & Wilmer LLP as special counsel.
ATLANTA WEST: Court OKs Deal on Cash Collateral Access
------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California,
Los Angeles Division, authorized Atlantic West One, Inc. to use
cash collateral on an interim basis in accordance with its
agreement with the U.S. Small Business Administration.
As previously reported by the Troubled Company Reporter, on July
14, 2020, the Debtor executed a U.S. Small Business Administration
Note, pursuant to which the Debtor obtained a $134,400 loan. On
October 4, 2021, the Debtor executed a first Modification of Note,
pursuant to which the Debtor obtained additional loan funds raising
the cumulative principal to $500,000. The terms of the Note
Modification require the Debtor to pay principal and interest
payments of $2,512 every month beginning 12 months from the date of
the Note over the 30-year term of the SBA Loan, with a maturity
date of July 14, 2050. The SBA Loan has an annual rale of interest
of 3.75% and may be prepaid at any time without notice of penalty.
Pursuant to the SBA Loan Authorization and Agreement executed on
July 14, 2020, the Debtor is required to "use all the proceeds of
this Loan solely as working capital to alleviate economic injury"
caused by the COVID-19 pandemic and pay Uniform Commercial Code
lien filing fees and a third-party UCC handling charge of $100
which will be deducted from the Loan amount.
As evidenced by the Amended Security Agreement executed on October
4, 2022, and a validly filed UCC-1 on July 25, 2020 as Filing
Number U200004778932, the SBA Loan is secured and properly
perfected by all tangible and intangible personal property. The
final hearing on the matter is set for November 17 at 11 a.m.
The SBA consented to the Debtor's use of cash collateral on agreed
upon terms. The Debtor represents to the SBA it will make no
additional or unauthorized use of the cash collateral retroactive
from the SBA Loan date until February 28, 2023 or the entry of an
Order Confirming the Debtor's Plan of Reorganization, whichever
occurs earlier. SBA consents to the Debtor's use of cash collateral
for ordinary and necessary expenses.
As adequate protection, retroactive to the Petition Date, the SBA
will receive a replacement lien on all presently-owned or hereafter
acquired assets of the Debtor. The scope of the replacement lien is
limited to the amount (if any) that cash collateral diminishes
post-petition as a result of the Debtor's post-petition use of cash
collateral. The replacement lien is valid, perfected and
enforceable and shall not be subject to dispute, avoidance, or
subordination, and this replacement lien need not be subject to
additional recording.
As adequate protection, the Debtor will commence monthly payments
of $2,512 to the SBA on December 14, 2022, continuing until further
Court order or entry of an Order Confirming the Debtor's Plan of
Reorganization, whichever occurs earlier.
The SBA will be entitled to a super-priority claim over the life of
the Debtor's bankruptcy case, pursuant to 11 U.S.C. sections 503(b)
and 507(b), which claim shall be limited to any diminution in the
value of the SBA's collateral, pursuant to the SBA Loan, as a
result of Debtor's use of cash collateral on a post-petition
basis.
The Stipulation will remain in effect until February 28, 2023, or
until the Parties enter into a further Stipulation or a consensual
Chapter 11 Plan, or until the case is converted or dismissed,
whichever first occurs.
About Atlantic West One, Inc.
Atlantic West One, Inc. sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 22-15535) on
October 11, 2022. In the petition signed by Mike Lavi, chief
executive officer, the Debtor disclosed up to $1 million in both
assets and liabilities.
Judge W. Brand oversees the case.
Giovanni Orantes, Esq., at the Orantes Law Firm, A.P.C., is the
Debtor's counsel.
BELMONT TWIN: Seeks to Hire Avrum J. Rosen as Legal Counsel
-----------------------------------------------------------
Belmont Twin, LLC seeks approval from the U.S. Bankruptcy Court for
the Eastern District of New York to employ The Law Offices of Avrum
J. Rosen, PLLC as its counsel.
The firm will render these legal services:
(a) advise the Debtor of its rights and duties;
(b) oversee preparation of necessary reports to the court or
creditors;
(c) conduct all appropriate investigation or litigation; and
(d) perform any other necessary duty in aid of the
administration of the estate.
The firm will be paid at these rates:
Partners $620 hour
Associates $325 to $525 per hour
Paraprofessional $100 to $150 per hour
As disclosed in court filings, The Law Offices of Avrum J. Rosen is
disinterested within the meaning of Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Avrum J. Rosen, Esq.
The Law Offices of Avrum J. Rosen, PLLC
38 New Street
Huntington, NY 11743
Telephone: (631) 423-8527
Email: arosen@ajrlawny.com
About Belmont Twin
Belmont Twin, LLC is a single asset real estate (as defined in 11
U.S.C. Sec. 101(51B)).
Belmont Twin filed a petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 22-42605) on Oct. 20,
2022. In the petition filed by its managing member, Serach
Neustadt, the Debtor reported between $1 million and $10 million in
both assets and liabilities.
Judge Nancy Hershey Lord oversees the case.
The Debtor is represented by Avrum J. Rosen, Esq., at The Law
Offices of Avrum J. Rosen, PLLC.
BEN-BELLA TRANS: Case Summary & One Unsecured Creditor
------------------------------------------------------
Debtor: Ben-Bella Trans, Corp.
545 Neptune Avenue # 9D
Brooklyn, NY 11224
Case No.: 22-42979
Business Description: Ben-Bella Trans operates in the taxi and
limousine service industry.
Chapter 11 Petition Date: November 30, 2022
Court: United States Bankruptcy Court
Eastern District of New York
Judge: Hon. Nancy Hershey Lord
Debtor's Counsel: Alla Kachan, Esq.
LAW OFFICES OF ALLA KACHAN, P.C.
2799 Coney Island Avenue
Suite 202
Brooklyn, NY 11235
Tel: (718) 513-3145
Fax: (347) 342-3156
Email: alla@kachanlaw.com
Total Assets: $660,000
Total Liabilities: $1,351,871
The petition was signed by Benyamin Kinkov as president.
The Debtor listed PenFed Credit Union as its only unsecured
creditor holding a claim of $691,871.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/FRF26WA/Ben-Bella_Trans_Corp__nyebke-22-42979__0001.0.pdf?mcid=tGE4TAMA
BLUE MOON PROPERTY: Taps Vanden Bos & Chapman as Legal Counsel
--------------------------------------------------------------
Blue Moon Property Group, LLC seeks approval from the U.S.
Bankruptcy Court for the District of Oregon to employ Vanden Bos &
Chapman, LLP to serve as legal counsel in its Chapter 11 case.
The firm's services include:
(a) advising the Debtor with respect to its powers and duties in
the operation of its business;
(b) instituting any necessary adversary proceedings;
(c) representing the Debtor generally in its Chapter 11
proceedings and preparing legal papers; and
(d) performing all other necessary legal services for the
Debtor.
The firm's hourly rates are as follows:
Ann K. Chapman, Managing Partner $475 per hour
Douglas R. Ricks, Partner $425 per hour
Christopher N. Coyle, Partner $415 per hour
Colleen A. Lowry, Associate $375 per hour
Daniel C. Bonham, Associate $285 per hour
Certified Bankruptcy Assistants $260 per hour
Legal Assistants $145 per hour
As disclosed in court filings, Vanden Bos & Chapman does not
represent interests adverse to the Debtor or to the estate in the
matters upon which it is to be engaged.
The firm can be reached through:
Douglas R. Ricks, Esq.
Vanden Bos & Chapman, LLP
319 SW Washington, Suite 520
Portland, OR 97204
Tel: 503-241-4869
Fax: 503-241-3731
Email: doug@vbcattorneys.com
About Blue Moon Property Group
Blue Moon Property Group, LLC is a real estate company in
Marylhurst, Ore.
Blue Moon Property Group LLC filed a petition for relief under
Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. D. Ore.
Case No. 22-31873) on Nov. 9, 2022, with between $1 million and $10
million in both assets and liabilities. Amy E. Mitchell has been
appointed as Subchapter V trustee.
Judge Teresa H. Pearson oversees the case.
The Debtor tapped Vanden Bos & Chapman, LLP as legal counsel.
BOYD GAMING: S&P Upgrades ICR to 'BB', Outlook Stable
-----------------------------------------------------
S&P Global Ratings raised all ratings, including its issuer credit
rating, on U.S. regional gaming operator Boyd Gaming Corp. to 'BB'
from 'BB-'.
The stable outlook reflects S&P's expectation for lease-adjusted
leverage to be in the high-2x to around 3x area, consistent with
the company's revised financial policy target of 2.5x gross
leverage.
S&P said, "The upgrade to 'BB' reflects our forecast that Boyd will
maintain lease-adjusted leverage of high-2x to 3x through 2023.This
is because we expect fourth-quarter 2022 operating performance to
remain relatively stable based on the company's comments that
customer spending remained consistent into October. It also
provides good cushion to our 'BB' rating's leverage threshold of 4x
despite our expectation of a modest pullback in gaming demand next
year and our base case of a shallow recession in 2023. As a result,
we forecast leverage to remain in the high-2x area at the end of
2022, even while Boyd continues to repurchase about $100 million in
shares per quarter and making its quarterly dividend of $0.15 per
share. This compares with our previous forecast for leverage of
low- to mid-3x this year.
"Boyd outperformed our expectations through the first nine months
of 2022 with its stable operating performance despite stimulus
benefits rolling off and alternate leisure and travel options fully
resuming. During that period, Boyd's property level EBITDAR grew
1.5% compared with our prior forecast that it would fall 10%-15%
year over year. Casino operators reported stable customer trends
thus far in 2022, including rated guest counts, frequency, and
spend, whilst casino operators have also reported a decline in
lower tier and less profitable customers." Despite inflationary
pressures, rising interest rates, and the return of a more normal
competitive environment, casino operators have largely sustained
considerable improvements in margins since 2020. In addition to
relatively stable gaming revenue through the third quarter of 2022,
Boyd benefited from an increase in ancillary revenue, including
food and beverage and hotel, which was impaired more than other
revenue sources amid pandemic-related concerns in 2021.
Boyd has shown consistency in maintaining lower leverage to support
the higher rating. In 2021, Boyd began articulating a more
conservative financial policy with respect to leverage, indicating
that it intends to maintain its long-term gross leverage around
2.5x, compared with its 4x-5x policy range prior to the pandemic.
(Our adjustments, principally leases, add around 0.25x-0.5x to
Boyd's measure of leverage.) Over the past 12 months Boyd has
continued to maintain leverage within its new target range, despite
returning more than $550 million to shareholders through share
repurchases and resuming its quarterly dividend program in February
2022.
Under S&P's 2023 base-case forecast for a shallow recession, it
expects Boyd will continue to generate healthy free operating cash
flow (FOCF) of $500 million-$550 million. This should allow the
company sufficient flexibility to complete planned shareholder
returns without adding material additional leverage. Boyd has
publicly indicated that it plans to make approximately $100 million
per quarter of recurring share repurchases , in addition to its
quarterly dividend payment. (There remains about $346 million
remaining under its current share repurchase authorization.)
Boyd has also remained disciplined in its growth capital
expenditures (capex) and acquisitions, which includes the expansion
of the Fremont casino in downtown Las Vegas (estimated to be about
a $50 million development); the relocation of the Treasure Chest
Casino riverboat to land (estimated at $100 million); and the
acquisition of Pala Interactive LLC for $170 million in November
2022, which it plans to use to grow its online gaming strategy
across the states in which it operates.
S&P said, "We believe Boyd will fund its future growth initiatives
and shareholder returns using internally generated cash. We also
believe Boyd will remain opportunistic in pursuing additional
investment or acquisition opportunities. Our base-case forecast
does not assume the company makes any material leveraging
acquisitions, we believe our forecasted leverage in the high 2x to
around 3x provides the company moderate cushion relative to our 4x
threshold at the 'BB' rating, which further supports the one notch
upgrade."
Macroeconomic risks could impede discretionary spending, but Boyd's
geographic diversity and concentration in local and regional gaming
markets may lessen the impact of a recession on its performance. As
the U.S. economy heads into 2023, rising prices and interest rates
eat away at household purchasing power. S&P said, "As a result, we
lowered our U.S. GDP growth forecast to 1.8% for 2022 and -0.1% for
2023, as the economy falls into a shallow recession in the first
half of the year. While our baseline now includes a recession, we
can't rule out chances of an even harder landing if the Federal
Reserve becomes more aggressive with rate hikes to quell
inflation." Although the shift in spending to experiences from
products may continue for a while longer, good regional gaming
revenue and the recent surge in leisure spending in Las Vegas
(which could potentially benefit Boyd's Las Vegas downtown
properties) may begin to moderate if consumers' willingness to
spend on travel and entertainment going into 2023 is hit by reduced
accumulated savings, ongoing high inflation, and higher
unemployment.
S&P said, "Still, we believe Boyd's diversified portfolio of gaming
assets, which is concentrated in local and regional gaming markets,
(Boyd has historically generated more than 90% of its total revenue
and property level EBITDAR from its Midwest and South properties
and its Las Vegas locals segment) can help mitigate some potential
EBITDA volatility caused by economic downturns or event risks.
Regional gaming markets have typically held up stronger in a
recession than destination markets, as gaming customers may opt to
stay closer to home and visit a regional casino instead of
destination markets if they have less discretionary dollars
available. Aside from Boyd's small portfolio of downtown Las Vegas
casinos, its portfolio primarily caters to customers who live in
the area and can drive to its properties. Consequently, we expect
the impacts of a shallow recession should only modestly negatively
affect Boyd's operating performance.
"The stable outlook reflects our expectation for lease-adjusted
leverage of high-2x to 3x, consistent with the company's revised
target gross leverage of 2.5x and incorporating our base case for a
shallow recession in the first half of 2023."
S&P believes a downgrade is unlikely over the next 12 months given
our forecasted leverage cushion. However, it could lower the rating
if it believes adjusted leverage will be sustained above 4x, which
could happen if Boyd:
-- Announced materially leveraging acquisitions or development
opportunities beyond what S&P already incorporated in its
forecast;
-- Experienced operating weakness over the next year or two above
and beyond what S&P already factored into its base case; or
-- Took a more aggressive approach to shareholder returns during a
period of heightened development spending and economic weakness.
S&P could raise the rating if it expects Boyd to sustain leverage
below 3x, incorporating operating volatility, leveraging
acquisitions, or significant capex developments.
ESG credit indicators: E-2, S-3, G-2
S&P said, "Social factors are a moderately negative consideration
in our credit rating analysis of Boyd. Despite impaired revenue and
cash flow in 2020 from casino closures and subsequent operating and
capacity restrictions, regional casino operators such as Boyd have
recovered strongly. Revenues have fully recovered to 2019 levels
while EBITDA is materially higher than 2019 levels because of cost
reductions. We expect that going forward EBITDA will remain above
pre-pandemic levels as a result of permanent changes to its cost
structure. Nonetheless, while we view the pandemic as a rare and
extreme disruption unlikely to recur at the same magnitude, safety
and health scares are an ongoing risk. Additionally, Boyd is
subject to high regulation in the jurisdictions where it
operates."
BROOKDALE SENIOR: Egan-Jones Retains CCC Sr. Unsecured Ratings
--------------------------------------------------------------
Egan-Jones Ratings Company, on November 22, 2022, retained its CCC
foreign currency senior unsecured ratings on debt issued by
Brookdale Senior Living Inc. EJR also retained its 'C' rating on
commercial paper issued by the Company.
Headquartered in Brentwood, Tennessee, Brookdale Senior Living Inc.
operates senior living facilities in the United States.
C&L DINERS: Court OKs Cash Collateral Access Thru Jan 2023
----------------------------------------------------------
The U.S. Bankruptcy Court for the District of Connecticut,
Bridgeport Division, authorized C & L Diners, LLC and affiliates to
use cash collateral on an interim basis in accordance with the
budget, with a 20% variance, through January 17, 2023.
Specifically, the Debtors are permitted to use cash in their bank
account and cash generated by their operation on the terms and
conditions set forth in the Second Interim Order.
The Debtors require the use of cash collateral to avoid irreparable
and immediate injury.
As adequate protection, the Secured Creditors, namely McLane
Foodservice Distribution, Inc., Stearns Bank, Pawnee Leasing
Company and Merlin Business Bank are granted replacement security
interests in and liens upon all post-petition inventory and
accounts receivable acquired by the Debtors that replaces any
pre-petition inventory and accounts receivable that was consumed or
used post-petition.
The Debtor, as additional adequate protection, will maintain an
inventory in an amount equal to 1.1x the value at cost of the food
and beverage inventory that existed as of the Petition Date.
The Adequate Protection Liens granted to the Secured Creditors will
be in the same rank, extent and priority as such Secured Creditor
possessed in the Debtors' cash collateral that existed on the
Petition Date.
A continued hearing on the matter is set for January 10 at 5 p.m.
A copy of the order and the Debtor's budget is available at
https://bit.ly/3OUvVjG from PacerMonitor.com.
The budget provides for total cash paid out, on a weekly basis, as
follows:
$75,824 for the week ending December 7, 2022;
$103,111 for the week ending December 14, 2022;
$53,820 for the week ending December 21, 2022;
$146,760 for the week ending December 28, 2022;
$75,735 for the week ending January 4, 2022;
$101,340 for the week ending January 11, 2022; and
$43,040 for the week ending January 18, 2022.
About C & L Diners, LLC
C & L Diners, LLC and affiliates sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. D. Conn. Lead Case No.
22-50599) on November 8, 2022. In the petition filed by Herman Li,
operating member, the Debtors disclosed up to $10 million in both
assets and liabilities.
Judge Julie A. Manning oversees the case.
Ira S. Greene, Esq. and Tara L. Trifon, Esq., at Locke Lord LLP,
represent the Debtors as legal counsel.
CALUMET PAINT: Gets Cash Collateral Access Thru Feb 2023
--------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois,
Eastern Division, authorized Calumet Paint & Wallpaper, Inc. to use
cash collateral on an interim basis and provide related relief for
the period December 1 through February 28, 2023, in accordance with
the budget.
In return for the Debtor's continued interim use of cash
collateral, Pratt & Lambert United, Inc. and PPG Architectural
Finishes, Inc. are granted the following as adequate protection for
the diminution in value of their purported secured interests:
1. The Debtor will permit the Secured Creditors to inspect,
upon reasonable notice, within reasonable hours, the Debtor's books
and records;
2. The Debtor will maintain and pay premiums for insurance to
cover all of its assets from fire, theft and water damage;
3. The Debtors will, upon reasonable request, make available
to the Secured Creditors evidence of that which constitutes their
collateral or proceeds;
4. The Debtor will properly maintain its assets in good repair
and properly manage its business; and
5. The Secured Creditors will be granted valid, perfected,
enforceable security interests in and to the Debtor's post-petition
assets, including all proceeds and products which are now or
hereafter become property of this estate to the extent and priority
of their alleged pre-petition liens, if valid, but only to the
extent of any diminution in the value of such assets during the
period from the commencement of the Debtor's Chapter 11 case
through February 28, 2023.
A further hearing on the Motion is scheduled for February 15 at
9:30 a.m.
A copy of the order and the Debtor's budget is available at
https://bit.ly/3XPcRY4 from PacerMonitor.com.
The Debtor projects $115,790 in total expenses for December 2022.
About Calumet Paint & Wallpaper, Inc.
Calumet Paint & Wallpaper, Inc. is an Illinois corporation
operating from leased premises at 12120 Western Avenue, Blue
Island, Illinois. Calumet Paint has been in business since 1957 and
is currently an authorized Benjamin Moore retailer specializing in
the sale of interior and exterior paints, stains and related
supplies. Calumet Paint sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 21-11709 on October
13, 2021. In the petition signed by Mark R. Lavelle, president, the
Debtor disclosed up to $1 million in both assets and liabilities.
Judge Timothy A. Barnes oversees the case.
David K. Wench, Esq., at Burke, Warren, MacKay and Serritella, PC
is the Debtor's counsel.
CAMECO TECHNOLOGIES: Sec. 341 Creditors' Meeting on Dec. 21
-----------------------------------------------------------
Cameco Technologies has filed for chapter 11 protection in the U.S.
Bankruptcy Court for the Middle District of Florida.
According to court filings, Cameco Technologies estimates $1
million to $10 million in debt owed to between 1 and 49 creditors.
The petition states that funds will not be available to unsecured
creditors.
According to the case docket, proofs of claim are due by March 21,
2023, while government proofs of claim on May 22, 2023.
The deadline for filing Chapter 11 Disclosure Statement is
September 19, 2023, and the Debtor's exclusivity period for filing
a disclosure statement and bankruptcy-exit plan ends May 22, 2023.
A teleconference meeting of creditors under 11 U.S.C. Section
341(a) is slated for December 21, 2022 at 10:00 a.m.
The Sec. 341 meeting is held so that creditors and the trustee can
ask questions about a debtor's financial situation. The meeting is
held outside of the presence of the judge. The meeting is presided
over by either the trustee assigned to the case and/or a
representative of the U.S. Trustee's Office. The debtor's attorney
and a responsible officer of the business must attend the meeting.
If a debtor does not attend the 341(a) Meeting, the bankruptcy case
may be dismissed.
About Cameco Technologies LLC
Cameco Technologies LLC provides computer repair service in Saint
Paul, Minnesota.
Cameco Technologies filed a petition for relief under Chapter 11 of
the Bankruptcy Code (Bankr. D. Minn. Case No. 22-31938) on November
23, 2022. In the petition filed by Serge Ngouamb, as president, the
Debtor reported assets between $100,000 and $500,000 and
liabilities between $500,000 and $1 million.
The Debtor is represented by:
Steven B Nosek, Esq.
Steven Nosek PA
719 Minnehaha Avenue East
Saint Paul, MN 55106
CANADIAN UTILITIES: Egan-Jones Retains BB Sr. Unsecured Ratings
---------------------------------------------------------------
Egan-Jones Ratings Company, on November 21, 2022, retained its 'BB'
foreign currency senior unsecured ratings on debt issued by
Canadian Utilities Ltd.
Headquartered in Calgary, Canada, Canadian Utilities Limited
conducts operations in electrical utility services, independent
power production, and retail gas and electricity marketing.
CAREVIEW COMMUNICATIONS: Sells $250K Worth of Shares to Directors
-----------------------------------------------------------------
Careview Communications, Inc. entered into a purchase agreement and
sold and issued, for $250,000 in cash, 2,500,000 shares of the
Company's common stock at a cash price of $0.10 per share. All
the shares were purchased by current members of the Company's Board
of Directors, according to a Form 8-K filed with the Securities and
Exchange Commission.
The Shares were offered and sold exclusively to accredited
investors in a transaction not involving a public offering,
pursuant to Section 4(a)(2) of the Securities Act and Rule 506 of
Regulation D promulgated thereunder. The Investors represented
that their intentions to acquire the securities for investment only
and not with a view to or for sale in connection with any
distribution thereof, and appropriate legends were placed upon the
Shares issued in the transaction. The offer and sale of the
securities were made without any general solicitation or
advertising.
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 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.
CHANDRA CORPORATION: Wins Interim Cash Collateral Access
--------------------------------------------------------
The U.S. Bankruptcy Court for the District of New Jersey authorized
Chandra Corporation to use cash collateral on an interim basis in
accordance with the budget.
The Debtor is permitted to use cash collateral for:
a. maintenance and preservation of its assets;
b. the continued operation of its business, including but not
limited to payroll, payroll taxes, employee expenses, and insurance
costs;
c. the completion of work-in-process; and
d. the purchase of replacement inventory.
The Small Business Administration has asserted a secured claim
against the Debtor in the approximate principal amount of $1.163
million as of the Petition Date. The Debt was incurred by the
Debtor pursuant to a Disaster Assistance Loan and security
agreement dated June 14, 2020 (effective July 28, 2021) and
modified October 13, 2021. Pursuant to the terms of the agreement
the loan was deferred pre-petition until December 14, 2022, and
therefore there was no pre-petition default or arrears.
The SBA has, and the Debtor has acknowledged and agreed that SBA
has, as of the Petition Date, a valid and subsisting first lien and
security interest pursuant to a duly filed and record UCC covering
Debtor's Inventory, Equipment, Negotiable Instruments, Chattel
Paper, Accounts Receivables and General Intangibles securing the
Debtor's indebtedness, in the principal amount of $1.163 million,
together with accrued interest, fees and costs.
As adequate protection for use of cash collateral, the Debtor will
maintain monthly contractual payments under the terms of the
underlying SBA loan documents in the amount of $5,741, which
payments commence under the terms of the agreement on December 14,
2022, and then on the 14th day of each month thereafter. In
addition, the SBA is granted a replacement perfected security
interest under Section 361(2) of the Bankruptcy Code to the extent
the SBA's cash collateral is used by the Debtor, to the extent and
with the same priority in the Debtor's post-petition collateral,
and proceeds thereof, that the SBA held in the Debtor's
pre-petition collateral.
A copy of the order is available at https://bit.ly/3UmoClG from
PacerMonitor.com.
About Chandra Corporation
Chandra Corporation sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. N.J. Case No. 22-17836) on October 3,
2022. In the petition signed by Philip Mewani, president, the
Debtor disclosed up to $50,000 in assets and up to $1 million in
liabilities.
Judge Stacey L. Meisel oversees the case.
Scott D. Sherman, Esq., at Minion & Sherman, is the Debtor's
counsel.
CHARTER COMMUNICATIONS: Egan-Jones Retains BB Unsecured Ratings
---------------------------------------------------------------
Egan-Jones Ratings Company, on November 23, 2022, retained its 'BB'
foreign currency and local currency senior unsecured ratings on
debt issued by Charter Communications, Inc/Old.
Headquartered in Stamford, Connecticut, Charter Communications,
Inc. operates cable television systems in the United States.
CHERRY MAN: Wins Continued Cash Collateral Access
-------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California,
Los Angeles Division, authorized Hamid R. Rafatjoo, the Chapter 11
Trustee of Cherry Man Industries, Inc., to use cash collateral on a
final basis, subject to the terms, including but not limited to the
provisions of adequate protection, as set forth in the Cash
Collateral Stipulation as modified by a Sixth Supplement.
The Court held a hearing on the Debtor's Emergency Motion for Order
Authorizing Interim Use of Cash Collateral; Granting Adequate
Protection as affected by the Stipulation Authorizing Use of Cash
Collateral; Granting Adequate Protection, as modified by the Fifth
Supplement to Stipulation Authorizing Use of Cash Collateral;
Granting Adequate Protection, which the Court previously approved
on October 26, 2022.
Since then, Rafatjoo and Cathay Bank have entered into a Sixth
Supplement to the Cash Collateral Stipulation to which the U.S.
Small Business Administration does not object.
A continued hearing on the matter is set for December 20, 2022, at
2 p.m.
A copy of the order is available at https://bit.ly/3gKx3K5 from
PacerMonitor.com.
About Cherry Man Industries
Cherry Man Industries, Inc., sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. C.D. Calif. Case No. 22-11471) on March
17, 2022, listing $100 million to $500 million in assets and $10
million to $50 million in liabilities. Frank Lin, president of
Cherry Man Industries, signed the petition.
El Segundo, Calif.-based Cherry Man was started in 2002 by Frank
Lin. It is one of the largest nationwide importers and distributors
of office furniture case goods. It has five distribution centers
across the United States.
Judge Neil W. Bason oversees the case.
The Law Offices of Michael Jay Berger serves as the Debtor's legal
counsel.
An official committee of unsecured creditors has been appointed in
the case. The Committee has retained Kelley Drye & Warren LLP as
counsel.
Hamid R. Rafatjoo has been appointed as Chapter 11 Trustee and is
represented by David Golubchik, Esq., at LEVENE, NEALE, BENDER, YOO
& GOLUBCHIK, L.L.P.
Secured creditor Cathay Bank is represented by:
Michael J. Gomez, Esq.
Gerrick M. Warrington, Esq.
FRANDZEL ROBINS BLOOM & CSATO, L.C.
1000 Wilshire Boulevard, Nineteenth Floor
Los Angeles, CA 90017-2427
Telephone: (323) 852-1000
Facsimile: (323) 651-2577
E-mail: mgomez@frandzel.com
gwarrington@frandzel.com
CITY LIVING KC: Wins Cash Collateral Access on Final Basis
----------------------------------------------------------
The U.S. Bankruptcy Court for the Western District of Missouri
authorized City Living KC, LLC, Inc. to use cash collateral on a
final basis.
The Debtor is indebted to Asset Bridge Capital, LLC and PS Funding,
Inc. or its assignee, which assert a security interest in and liens
upon Debtor's rents.
Creditors claim a secured interest in the Debtor's cash collateral
by virtue of liens filed on various dates.
The Debtor will pay Asset Bridge Capital, LLC monthly payments of
$500 as adequate protection beginning October 28, 2022 and
continuing the 28th day of the month thereafter or until further
Court Order.
Because the Court has not determined the priority or current debt
holder, the Debtor will not make any payments to PS Funding, Inc.
or its assignee, until further Court order. The proposed monthly
payments will be held by the Debtor pending further Court order
regarding these properties:
a. 1840 East 77th Street, Kansas City, MO 64132 and 2219 East
69th Terrace, Kansas City, MO 64132. Monthly payment of $1,670,
which includes escrow payments for real state taxes and insurance
of $630.
b. 7320 Manchester Avenue, Kansas City, MO 64133. Monthly
payment of $1,723, which includes escrow payments for real state
taxes and insurance of $480.
c. 7861 James A Reed Road, Kansas City, MO 64138. Monthly
payment of $1,055, which includes escrow payments for real state
taxes and insurance of $370.
A copy of the order is available at https://bit.ly/3udbxAy from
PacerMonitor.com.
About City Living KC, LLC
City Living KC, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Mo. Case No. 22-41170) on September
20, 2022. In the petition signed by Quashena Wallace, owner, the
Debtor disclosed up to $10 million in assets and up to $1 million
in liabilities.
Judge Brian T. Fenimore oversees the case.
Colin Gotham, Esq., at Evans & Mullinix, P.A., is the Debtor's
counsel.
CLARUS THERAPEUTICS: Taps Stretto as Administrative Advisor
-----------------------------------------------------------
Clarus Therapeutics Holdings, Inc. and its affiliates received
approval from the U.S. Bankruptcy Court for the District of
Delaware to employ Stretto, Inc. as their administrative advisor.
The Debtors require an administrative advisor to:
a. assist with, among other things, solicitation, balloting,
and tabulation of votes, and prepare any related reports in support
of confirmation of a Chapter 11 plan;
b. prepare an official ballot certification and, if necessary,
testify in support of the ballot tabulation results;
c. assist with the preparation of the Debtors' schedules of
assets and liabilities and statements of financial affairs, and
gather data in conjunction therewith;
d. assist with the preparation of the Debtors' monthly
operating reports and gather data in conjunction therewith;
e. provide a confidential data room;
f. manage and coordinate any distributions pursuant to a
Chapter 11 plan if designated as distribution agent under such
plan; and
g. provide other administrative services.
The firm will be paid at these rates:
Director/Managing Director $210 to $250 per hour
Associates/Sr. Associates $70 to $200 per hour
The retainer is $25,000.
Sheryl Betance, a senior managing director at Stretto, disclosed in
a court filing that her firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Sheryl Betance
Stretto, Inc.
410 Exchange, Ste. 100
Irvine, CA 92602
Tel: (714) 716-1872
Email: Sheryl.betance@stretto.com
About Clarus Therapeutics Holdings
Clarus Therapeutics Holdings, Inc. operates as a pharmaceutical
company focused on the commercialization of JATENZO (testosterone
undecanoate), the first oral testosterone replacement, or
testosterone replacement therapy, of its kind approved by the U.S.
Food and Drug Administration.
Clarus Therapeutics Holdings, Inc. and Clarus Therapeutics, Inc.
sought protection under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. D. Del. Case No. 22-10845) on Sept. 5, 2022. In the
petitions signed by Lawrence R. Perkins, chief restructuring
officer, the Debtors disclosed $48,940,000 in total assets and
$62,003,000 in total debts.
Judge Mary F. Walrath oversees the cases.
The Debtors tapped Goodwin Procter, LLP as bankruptcy counsel;
Potter Anderson & Corroon, LLP as local and conflicts counsel;
Raymond James & Associates, Inc. as investment banker; and
SierraConstellation Partners, LLC as restructuring advisor.
SierraConstellation CEO Lawrence R. Perkins serves as the Debtors'
chief restructuring officer. Stretto, Inc. is the claims and
noticing agent and administrative advisor.
On Sept. 16, 2022, the U.S. Trustee for Region 3 appointed an
official committee of unsecured creditors in these Chapter 11
cases. The committee tapped DLA Piper LLP (US) as legal counsel and
Alvarez & Marsal North America, LLC as financial advisor.
CLIENT FIRST: Seeks to Hire Wernick Law as Legal Counsel
--------------------------------------------------------
Client First Settlement Funding, LLC and Client First Lotteries,
LLC seek approval from the U.S. Bankruptcy Court for the Southern
District of Florida to employ Wernick Law, PLLC to serve as legal
counsel in their Chapter 11 cases.
The firm's services include:
(a) give advice to the Debtors with respect to their powers
and duties and the continued management of their business
operations;
(b) advise the Debtors with respect to their responsibilities
in complying with the U.S. Trustee's Operating Guidelines and
Reporting Requirements and with the rules of the court;
(c) prepare adversary proceedings and legal documents;
(d) protect the interest of the Debtors in all matters pending
before the court; and
(e) represent the Debtors in negotiations with creditors in
the preparation of a Chapter 11 plan.
The firm will be paid at these rates:
Aaron A. Wernick, Esq. $600 per hour
Lenore Rosetto Parr, Esq. $475 per hour
Paralegal $200 per hour
Wernick received from the Debtors the amount of $12,314.50, and
$1,062, for post-petition fees and costs.
Aaron Wernick, Esq., the firm's attorney who will be providing the
services, disclosed in a court filing that he is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Aaron A. Wernick, Esq.
Wernick Law, PLLC
2255 Glades Road, Suite 324A
Boca Raton, FL 33431.
Tel: 901-525-1322
Fax: 901-525-2389
Email: awernick@wernicklaw.com
About Client First Settlement Funding
Client First Settlement Funding, LLC specializes in purchasing and
selling structured settlements and annuities nationwide.
Client First Settlement Funding and Client First Lotteries filed
petitions for relief under Subchapter V of Chapter 11 of the
Bankruptcy Code (Bankr. S.D. Fla. Lead Case No. 22-18262) on Oct.
26, 2022. Aleida Martinez-Molina has been appointed as Subchapter V
trustee.
At the time of the filing, Client First Settlement Funding listed
between $1 million and $10 million in both assets and liabilities
while Client First Lotteries listed up to $50,000 in assets and up
to $1 million in liabilities.
Judge Mindy A. Mora oversees the cases.
The Debtors are represented by Aaron A. Wernick, Esq., at Wernick
Law, PLLC.
CLUBHOUSE MEDIA: Hikes Authorized Common Shares to 25 Billion
-------------------------------------------------------------
Clubhouse Media Group, Inc. disclosed in a Form 8-K filed with the
Securities and Exchange Commission that it filed a certificate of
amendment to its Articles of Incorporation to increase the
Company's authorized shares of common stock, par value $0.000001
per share, from 8,000,000,000 to 25,000,000,000.
Accordingly, following the filing of the Amendment, the Company has
25,050,000,000 authorized shares of capital stock, consisting of
25,000,000,000 shares of common stock and 50,000,000 shares of
preferred stock, par value $0.001 per share.
About Clubhouse Media
Las Vegas, Nevada-based Clubhouse Media Group, Inc. offers
management, production, and deal-making services to its handpicked
influencers, a management division for individual influencer
clients, and an investment arm for joint ventures and acquisitions
for companies in the social media influencer space.
Clubhouse Media reported net loss of $22.25 million for the year
ended Dec. 31, 2021, compared to a net loss of $2.58 million for
the period from Jan. 2, 2020 (inception) to Dec. 31, 2020. As of
Sept. 30, 2022, the Company had $1.59 million in total assets,
$11.65 million in total liabilities, and $10.06 million in total
stockholders' deficit.
Spokane, Washington-based Fruci & Associates II, PLLC, the
Company's auditor since 2020, issued a "going concern"
qualification in its report dated March 29, 2022, citing that the
Company has an accumulated deficit, net losses, and negative
working capital. These factors raise substantial doubt about the
Company's ability to continue as a going concern.
CM RESORT: Trustee's $3.5M Sale of Gordon Land Denied W/o Prejudice
-------------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Texas denied
without prejudice the proposed sale by John Dee Spicer, the trustee
appointed in the Chapter 11 cases of CM Resort LLC and its
affiliates, to Durkin Properties, LLC, for $3,515,000 cash, subject
to overbid, of the estate's interests in approximately 1,854.349
acres of undeveloped land in Gordon, Palo Pinto County, Texas.
The Property is more particularly described as follows:
(a) the tracts of land consisting of approximately 1,854.349 acres
located off of Farm to Market Road 2692, Gordon, Palo Pinto County,
Texas, together with all interest, if any, of Seller in (i) strips
or gores, if any, between the Land and abutting properties and (ii)
any land lying, in or under the bed of any street, alley, road or
right-of-way, opened or proposed, abutting or adjacent to the
Land;
(b) all buildings, structures and improvements on the Land,
including, but not limited to, three vacant residential
structures,
various barns and outbuildings;
(c) all rights, titles and interests of Seller, if any, in and
to any oil, gas, hydrocarbons and all other minerals in, on, or
under, or that may be produced from the Land;
(d) all of the Seller's interest in leases, subleases and
rental agreements (written or verbal, now or hereafter in effect,
if any) that grant a possessory interest in or that otherwise grant
rights with regard to use of all or any portion of the Land or the
minerals beneath it;
(e) all rights, titles and interests of Seller in and to any
easements, rights-of-way, rights of ingress or egress or other
interests in, on, or to, any land, highway, street, road or avenue,
open or proposed, in, on, across, in front of, abutting, or
adjoining the Land; and
(f) all other rights, privileges and appurtenances owned by
the Seller and in any way related to the property interests
described.
The Continuance Motion and the Expedited Hearing Motion are denied
as moot.
About CM Resort
Based in Gordon, Texas, CM Resort LLC, a single asset real estate,
filed a voluntary petition for bankruptcy under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Tex. Case No. 18-43168) on Aug. 15,
2018. The case is jointly administered with the Chapter 11 cases
filed by CM Resort Management LLC and nine other companies. Case
No. 18-43168 is the lead case.
In the petition signed by Mark Ruff, member and authorized agent,
CM Resort estimated $1 million to $10 million in assets and $10
million to $50 million in liabilities. Judge Russell F. Nelms
presides over the case.
Gerrit M. Pronske, Esq., at Pronske Goolsby & Kathman, P.C., is CM
Resort's legal counsel.
John Dee Spicer was appointed as Chapter 11 trustee. The trustee
is represented by Cavazos Hendricks Poirot, P.C.
COGENT COMMUNICATIONS: Egan-Jones Retains 'B-' Unsecured Ratings
----------------------------------------------------------------
Egan-Jones Ratings Company, on November 21, 2022, retained its 'B-'
foreign currency senior unsecured ratings on debt issued by Cogent
Communications Holdings Inc. EJR also retained its 'B' rating on
commercial paper issued by the Company.
Headquartered in Washington, D.C., Cogent Communications Holdings,
Inc. operates as a next-generation optical Internet service
provider focused on delivering ultra-high-speed Internet access and
transport services.
COMMUNITY HEALTH: Egan-Jones Retains CCC+ Sr. Unsecured Ratings
---------------------------------------------------------------
Egan-Jones Ratings Company, on November 23, 2022, retained its
'CCC+' foreign currency senior unsecured ratings on debt issued by
Community Health Systems Inc. EJR also retained its 'B' rating on
commercial paper issued by the Company.
Headquartered in Franklin, Tennessee, Community Health Systems,
Inc. owns, leases, and operates hospitals.
COMPUTE NORTH: $1.55M Sale of LLC's Assets to Crusoe Energy OK'd
----------------------------------------------------------------
Judge Marvin Isgur of the U.S. Bankruptcy Court for the Southern
District of Texas authorized Compute North Holdings, Inc., and its
affiliates to sell Compute North LLC's assets to Crusoe Energy
Systems, LLC, for $1,547,000 cash.
The Debtors are authorized to consummate the Sale and the
transactions contemplated in the Asset Purchase Agreement.
The Sale is free and clear of any and all liens, claims,
encumbrances, and interests of any kind or nature whatsoever, with
any and all such valid or asserted liens, claims, encumbrances, and
interests, if any, upon the Closing, attaching solely to the
proceeds of the Sale ultimately attributable to the Acquired Assets
against which the holders thereof assert an interest.
In particular, the asserted liens of RK Mission Critical LLC
against the two containers identified in the Asset Purchase
Agreement with serial numbers 151962 (B) and 151951 will not attach
to the Encumbered Containers but will instead attach, upon the
Closing, solely to the proceeds of the Sale in the amount of
$281,272.72 attributable to the Encumbered Containers.
Notwithstanding Bankruptcy Rule 6004(h), the terms and conditions
of the Order are immediately effective and enforceable upon its
entry.
The Debtors are authorized to take all actions necessary to
effectuate the relief granted in the Order in accordance with the
Motion.
The Sale Hearing was held on Nov. 16, 2022.
A copy of the Agreement is available at
https://tinyurl.com/2u9vum37 from PacerMonitor.com free of charge.
The Purchaser:
CRUSOE ENERGY SYSTEMS, LLC
1641 California Street, Suite 400
Denver, CO 80202
Attn: Jamey Seely, General Counsel
E-mail: jseely@crusoeenergy.com
- and -
LOCKE LORD LLP
JPMorgan Chase Tower
600 Travis, Suite 2800
Houston, TX 77002
Attn: Elizabeth Guffy
E-mail: eguffy@lockelord.com
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.
CONSOLIDATED COMMUNICATIONS: Egan-Jones Keeps B-FC Unsec. Ratings
-----------------------------------------------------------------
Egan-Jones Ratings Company, on November 23, 2022, retained its B-
foreign currency senior unsecured ratings on debt issued by
Consolidated Communications Holdings Inc. EJR also retained its B
rating on commercial paper issued by the Company.
Headquartered in Mattoon, Illinois, Consolidated Communications
Holdings, Inc. offers telecommunications services.
CRANE MAN INC: Seeks to Hire Pepper and Nason as Legal Counsel
--------------------------------------------------------------
Crane Man, Inc. seeks approval from the U.S. Bankruptcy Court for
the Southern District of West Virginia to employ Pepper and Nason
to serve as legal counsel in its Chapter 11 case.
The firm's services include:
Andrew S. Nason, Esq. $375 per hour
Emmett Pepper, Esq. $250 per hour
The Debtor paid $26,262 to the law firm as a retainer fee.
As disclosed in court filings, the attorneys at Pepper and Nason
are "disinterested persons" as the term is defined in Section
101(14) of the Bankruptcy Code.
The firm can be reached at:
Andrew S. Nason, Esq.
Emmett Pepper, Esq.
Pepper and Nason
8 Hale Street
Charleston, WV 25301
Tel: (304) 346-0361
Fax: (304) 346-1054
Email: info@PepperNason.com
About Crane Man Inc.
Crane Man, Inc. filed a Chapter 11 bankruptcy petition (Bankr. S.D.
W.Va. Case No. 22-20172) on Nov. 8, 2022, with as much as $1
million in both assets and liabilities. Judge B. Mckay Mignault
oversees the case.
The Debtor is represented by Pepper and Nason.
DIEBOLD NIXDORF: Egan-Jones Keeps CCC FC Sr. Unsecured Debt Rating
------------------------------------------------------------------
Egan-Jones Ratings Company, on November 22, 2022, retained its
'CCC' foreign currency senior unsecured ratings on debt issued by
Diebold Nixdorf Inc. EJR also retained its 'C' rating on commercial
paper issued by the Company.
Headquartered in North Canton, Ohio, Diebold Nixdorf, Incorporated
provides automatic teller machines, financial, and point of sale
(POS) services.
DRY MORE: Voluntary Chapter 11 Case Summary
-------------------------------------------
Debtor: Dry More Company
8345 W Little York Rd Ste 2
Houston, TX 77040-4395
Case No.: 22-33532
Business Description: The Debtor is a water damage restoration
services in Houston.
Chapter 11 Petition Date: November 30, 2022
Court: United States Bankruptcy Court
Southern District of Texas
Judge: Hon. Christopher M. Lopez
Debtor's Counsel: Reese W. Baker, Esq.
BAKER & ASSOCIATES
950 Echo Ln Ste 300
Houston, TX 77024-2824
Email: courtdocs@bakerassociates.net
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Jessica Lykins as president.
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/RW2OJ4A/Dry_More_Company__txsbke-22-33532__0001.0.pdf?mcid=tGE4TAMA
DUNTOV MOTOR: Sale of Custom-Built Corvette for $80K or More Okayed
-------------------------------------------------------------------
Judge Mark X. Mullin of the U.S. Bankruptcy Court for the Northern
District of Texas authorized Duntov Motor Co., LLC's sale of its
custom-built Corvette for $80,000 or more.
The sale will be free and clear of all liens, claims, encumbrances,
and other interests, with such interests attaching to the
proceeds.
The Debtor will deposit the proceeds of the sale into the registry
of the Court within 48 business hours of receipt of clear available
funds, and the funds will remain in the Court registry until
further order of the Court.
The Debtor will file a report of sale within seven days of closing
on the sale that identifies the purchaser and the purchase price
paid. Its authority pursuant to the Order will expire 14 days after
its entry.
Any stay of the effectiveness of the Order, including under Federal
Rule of Bankruptcy Procedure 6004(h), is waived and the Debtor may
proceed to closing immediately.
The Clerk of Court will receive and deposit into the Registry of
the Court the funds from the Debtor from the sale, and such funds
will only be released by further Order of the Court.
About Duntov Motor Company
Duntov Motor Company, LLC filed a petition for Chapter 11
protection (Bankr. N.D. Texas Case No. 21-40348) on Feb. 20, 2021,
listing up to $500,000 in assets and up to $1 million in
liabilities. Behrooz Vida has been appointed as the Subchapter V
trustee in the Debtor's bankruptcy case.
Judge Mark X. Mullin oversees the case.
The Debtor tapped Quilling, Selander, Lownds, Winslett & Moser PC
as bankruptcy counsel, Hahn Law Firm P.C. as special litigation
counsel, and Andy D. Plagens LLC as accountant.
FLORIDA MULCH: Court OK's Cash Collateral Access Thru Dec 16
------------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida,
Orlando Division, authorized Florida Mulch, Inc. 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 payments to the
Subchapter V Trustee; (b) the current and necessary expenses set
forth in the budget, plus an amount not to exceed 10% for each line
item; and (c) additional amounts as may be expressly approved in
writing by United Community Bank d/b/a Seaside Bank and Trust as
successor by merger to Seaside National Bank & Trust.
The authorization will continue through December 16, 2022, however,
the parties may jointly agree to extend the authorization by
submitting an agreed order reflecting such extension.
As adequate protection, the Secured Creditors 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 documents as may otherwise
be required under applicable non-bankruptcy law.
The Debtor will maintain insurance coverage for its property in
accordance with the obligations under all applicable loan and
security documents as well as the Operating Guidelines and
Reporting Requirements for Debtors in Possession and Chapter 11
Trustees established by the Office of the United States Trustee.
A final hearing on the matter is set for December 15, 2022 at 10:30
a.m.
A copy of the order is available at https://bit.ly/3gPnyZX from
PacerMonitor.com.
About Florida Mulch
Florida Mulch, Inc. is a closely held Florida for-profit
corporation formed in 1978. Its core business involves the
production, delivery and installation of quality ground cover
products including multiple blends and colors of mulch, pine bark,
pine straw, and enviro mulch products.
Saint Cloud, Fla.-based Florida Mulch filed a voluntary petition
for relief under Chapter 11 of the Bankruptcy Code (Bankr. M.D.
Fla. Case No. 22-04018) on November 9, 2022, and elected to pursue
relief under the provisions of Subchapter V.
Judge Lori V. Vaughan oversees the case.
Daniel A. Velasquez, Esq., at Latham Luna Eden & Beaudine LLP,
serves as counsel to the Debtor.
In its petition, the Debtor estimated $1 million to $10 million in
both assets and liabilities. The petition was signed by Wilard
palmer as president/sole shareholder.
FREEPORT GATE: 55 Hudson Buying Marina Property for $1.13 Million
-----------------------------------------------------------------
Freeport Gate, LLC, asks the U.S. Bankruptcy Court for the Eastern
District of New York to approve the sale of its marina property
located at 55 Hudson Avenue, in Freeport, New York, to 55
Hudson-Freeport LLC for $1,132,000.
A telephonic hearing on the Motion is set for Dec. 21, 2022, at
10:00 a.m. The Objection Deadline is Dec. 14, 2022, at 5:00 p.m.
On Oct. 20, 2022, an auction was held to determine the highest and
best bidder for the Real Property. The successful bidder, Andrew
Woodstock of NY Farms Group Inc., assigned its bid to 55
Hudson-Freeport, LLC and the full 10% deposit has been deposited
with the Debtor's attorney as required under the approved Terms and
Conditions. The Successful Bid of $1,132,000 includes a $32,000
"buyer's premium."
The sale will be free and clear of all liens, claims and
encumbrances, with such liens, claims and encumbrances to attach to
proceeds of sale.
A copy of the Terms & Conditions of Sale is available at
https://tinyurl.com/54wsvasv from PacerMonitor.com free of charge.
About Freeport Gate
Freeport Gate, LLC, a company in Great Neck, N.Y., filed a
petition
for relief under Subchapter V of Chapter 11 of the Bankruptcy Code
(Bankr. E.D.N.Y. Case No. 22-71639) on July 7, 2022, listing $1
million to $10 million in both assets and liabilities. Gerard R.
Luckman has been appointed as Subchapter V trustee.
Judge Robert E. Grossman oversees the case.
Robert J. Spence, Esq., at Spence Law Office, P.C. represents the
Debtor as counsel.
GAGE'S GRANITE: Wins Final Cash Collateral Access
-------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Texas,
Dallas Division, authorized Gage Granite, LLC to use cash
collateral on a final basis in accordance with the budget.
The Debtor asserts a need to use the cash collateral in order to
continue the operations of its business and maintain the value of
the bankruptcy estate.
American National Bank of Texas asserts that the Debtor is indebted
to it under various contracts, notes, security agreements and other
loan instruments entered into prior to the Petition Date and that
the Indebtedness is secured by properly perfected liens on all or
substantially all of the Debtor's assets.
American National asserts Indebtedness totals approximately
$705,600 as of the Petition Date. American National asserts the
Indebtedness is secured by a lien or liens on all or on
substantially all of the Debtor's assets and that all proceeds from
the use or sale of American National's Collateral constitutes
American National's cash collateral.
As adequate protection for the Debtor's use of cash collateral,
American National is granted post-petition security interests in,
and replacement lien upon, subject only to prior non-avoidable
liens, claims, or interests in the Debtor's assets and property of
every kind. American National will not receive a security interest
in, or a replacement lien on, the Debtor's avoidance actions under
chapter 5 of the Bankruptcy Code. The Replacement Liens will serve
as adequate protection for the use of the cash collateral to the
extent of any diminution of the value of the collateral securing
the claim of American National.
All liens and security interests granted are deemed effective,
valid, and perfected as of the Petition Date -- to the extent the
original security interests of American National were valid and
perfected as of the Petition Date -- without the necessity of
filing or recording by or with any entity of any documents or
instruments otherwise required to be filed or recorded under
applicable non-bankruptcy law.
These events constitute an Event of Default:
a. The Debtor's Chapter 11 Case is converted to a case under
Chapter 7 of the Bankruptcy Code;
b. The Court removes the Debtor as debtor-in-possession under
11 U.S.C. section 1181(a), provided, however, that it will not be
an event of default for the Court to remove the Debtor from
possession on the request of either American National;
c. Any default under, breach of or failure to comply with, any
provisions of the Final Order, which breach is not cured within
five business days after the Debtor's receipt of written notice
thereof.
A copy of the order is available at https://bit.ly/3XH5hyF from
PacerMonitor.com.
About Gage's Granite LLC
Gage's Granite LLC is a family owned and operated granite
manufacturing company specializing in commercial finish out. It has
been providing quality custom granite and marble countertops to
commercial businesses and homeowners in the Dallas/Ft. Worth
metroplex since 2000.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Tex. Case No. 22-32010) on October 27,
2022. In the petition signed by Christopher Raines, sole member,
the Debtor disclosed $1,726,673 in total assets and $1,538,095 in
total liabilities.
GENAPSYS INC: Unsecureds to Recover 17% in Liquidating Plan
-----------------------------------------------------------
Redwood Liquidating Co. f/k/a GenapSys, Inc. filed with the U.S.
Bankruptcy Court for the District of Delaware a Combined Disclosure
Statement and Chapter 11 Plan of Liquidation dated November 28,
2022.
The Debtor, founded in 2010 by Dr. Esfandyarpour, is a privately
held Delaware corporation formerly headquartered in Redwood City,
California. The Debtor's business involved a novel method for DNA
sequencing.
Facing dwindling liquidity, the Debtor engaged Lazard to identify
new investors or potential acquirors through the Prepetition
Marketing Process. Lazard informed each of these parties that the
Prepetition Marketing Process was expeditious by necessity in order
to address the Debtor's liquidity.
Following the Petition Date, the Debtor and Lazard's continued
negotiations with Farallon resulted in the Debtor receiving a
Stalking Horse Bid for substantially all of the Debtor's assets
from the Stalking Horse Bidder, Sequencing Health, a purchaser
entity affiliated with entities, funds and/or accounts managed or
advised, directly or indirectly, by, or under common control with,
two investors holding Series D Preferred Equity Interests in the
Debtor: Farallon and Soleus Private Equity Fund II, LP.
Pursuant to the Stalking Horse Bid, the Stalking Horse Bidder
proposed to purchase the Purchased Assets for the aggregate
purchase price of up to $10,000,000 in cash consideration and the
assumption of certain prepetition indebtedness to Oxford. The
aggregate Purchase Price, based on the Cash Purchase Price and the
Assumed Oxford Indebtedness, was approximately $42 million.
On September 8, 2022, the Bankruptcy Court held the Sale Hearing to
consider approval of the Sale to Sequencing Health, as Stalking
Horse Bidder, pursuant to the Asset Purchase Agreement. On
September 12, 2022, the Bankruptcy Court entered the Sale Order
approving the Sale of the Purchased Assets to Sequencing Health
pursuant to the Asset Purchase Agreement.
On September 14, 2022, the Sale closed. In connection with the
Sale, the Debtor and Sequencing Health entered into that certain
Transitions Services Agreement, dated September 14, 2022 (the
"TSA"), whereby the Debtor agreed to provide certain Services in
exchange for the fees, costs and expenses set forth therein. The
term of the TSA expires on November 14, 2022 and is subject to a
one-time extension of 30 days by Sequencing Health.
Section 7.2 of the Asset Purchase Agreement required the Debtor to,
among other things, cease using its current name, or any variation
thereof, within three business days of the closing of the Sale.
Accordingly, on September 15, 2022, the Debtor filed the necessary
documentation with the Secretary of State changing its corporate
name to "Redwood Liquidating Co."
In order of liquidation preference, Series D is senior with respect
to Series C, which is senior with respect to Series B, which is
senior with respect to Series A, which is senior with respect to
Common Equity Interests. Each series of Preferred Equity Interests
accrues dividends at a different annual rate. The liquidation
preferences for Preferred Equity Interests have priority over the
Debtor's Common Equity Interests. As of the Petition Date, the
liquidation preferences of the Preferred Equity Interests totaled
approximately $200,300,000.
Class 3 consists of General Unsecured Claims. Except to the extent
that a holder of an Allowed General Unsecured Claim agrees to such
other, less favorable treatment, each Holder of an Allowed General
Unsecured Claim shall be paid its Pro Rata share of the Net
Distributable Assets, in full and final satisfaction, settlement,
discharge, and release of, and in exchange for, its Allowed General
Unsecured Claims. This Class is impaired. The allowed unsecured
claims total $6,333,208. This Class will receive a distribution of
17% of their allowed claims.
Holders of Class 8a Common Equity Interests shall not receive or
retain any distribution under the Combined Disclosure Statement and
Plan on account of such Common Equity Interests. Common Equity
Interests shall be discharged, cancelled, released and extinguished
as of the Effective Date; provided, however, that, upon the
Effective Date, the Plan Administrator shall be deemed to hold one
share of common equity in the Post-Effective Date Debtor solely for
the benefit of Holders of Allowed Claims and, if entitled to a
recovery in accordance with the terms of this Combined Disclosure
Statement and Plan, Allowed Equity Interests.
Allowed Claims, Allowed Equity Interests, and any amounts necessary
to wind down the Debtor's Estate shall be paid from the Net
Distributable Assets, subject to the limitations and
qualifications.
Counsel to the Debtor:
Daniel J. DeFranceschi, Esq.
Michael J. Merchant, Esq.
David T. Queroli, Esq.
J. Zachary Noble, Esq.
Richards, Layton & Finger, PA
One Rodney Square
920 North King Street
Wilmington, DE 19801
Telephone: (302) 651-7700
Facsimile: (302) 651-7701
Email: defranceschi@rlf.com
merchant@rlf.com
queroli@rlf.com
noble@rlf.com
About GenapSys Inc.
GenapSys Inc. -- https://genapsys.com/ -- is a biotechnology
company that transforms the human condition by building a scalable,
affordable genomic sequencing ecosystem that will support research
and diagnostics. It is based in Redwood City, Calif.
GenapSys sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Del. Case No. 22-10621) on July 11, 2022. In the
petition filed by Britton Russell, chief financial officer and
treasurer, the Debtor listed assets between $10 million and $50
million and liabilities between $50 million and $100 million.
Judge Brendan Linehan Shannon oversees the case.
The Debtor tapped Richards, Layton & Finger, PA as bankruptcy
counsel; Willkie Farr & Gallagher LLP as special litigation and
corporate counsel; and Lazard Freres & Co. LLC as investment
banker. Kroll Restructuring Administration LLC is the Debtor's
claims and noticing agent and administrative advisor.
GEORGE SARIOTIS: Gifford Buying Ocean Township Property for $800K
-----------------------------------------------------------------
George Sariotis and Cindy Sariotis ask the U.S. Bankruptcy Court
for the District of New Jersey to authorize the sale of the real
property located at 1801 Pitney Street, in Ocean Township, Monmouth
County, New Jersey 07755, to Vincent H. Gifford for $800,000, in
accordance with the terms of their Real Estate Sales Contract.
The Debtors propose to sell the Property free and clear of certain
liens, claims, and encumbrances, with valid liens to attach to the
proceeds of the sale.
A copy of the Contract is available at https://tinyurl.com/2w7hje3r
from PacerMonitor.com free of charge.
George Sariotis and Cindy Sariotis sought Chapter 11 protection
(Bankr. D.N.J. Case No. 22-12916) on April 10, 2022. The Debtors
tapped Geoffrey Neumann, Esq., as counsel.
GRAHAM ENT: Voluntary Chapter 11 Case Summary
---------------------------------------------
Debtor: Graham Ent LLC
947 East 98th Street
Brooklyn, NY 11236
Case No.: 22-42961
Business Description: The Debtor is a Single Asset Real Estate
(as defined in 11 U.S.C. Section 101(51B)).
Chapter 11 Petition Date: November 30, 2022
Court: United States Bankruptcy Court
Eastern District of New York
Judge: Hon. Nancy Hershey Lord
Debtor's Counsel: Gregory M. Messer, Esq.
LAW OFFICE OF GREGORY MESSER
26 Court Street
Suite 2400
Brooklyn, NY 11242
Tel: 718-858-1474
Fax: 718 797-5360
Email: gmesser@messer-law.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $500,000 to $1 million
The petition was signed by George Graham as managing member.
The Debtor stated it has no creditors holding unsecured claims.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/2ZYRIFI/Graham_Ent_LLC__nyebke-22-42961__0001.0.pdf?mcid=tGE4TAMA
H&S ALANG: Amends Class 3 Secured Claimant to American Bank
-----------------------------------------------------------
H&S Alang, LLC, submitted a First Modification to Plan of
Reorganization and Disclosure Statement dated November 28, 2022.
Since the filing of the Plan and Disclosure Statement, Pearsall
Holdings, LLC, the holder of the Class 3 Secured Claim under the
Plan, sold the Class 3 Claim (including the promissory note, deed
of trust and all related loan documents under which the Debtor was
obligated to Pearsall), to American Bank, N.A. for the cash sum of
$2,125,000.00.
The purpose of this Modification is to reflect this change in the
Plan and Disclosure Statement, and to address the Objection to the
Disclosure Statement filed by Pearsall.
Article IV of the Plan (at page 7) is modified to change the name
of the Class 3 Claimant from "Pearsall Holdings, LLC" to "American
Bank, N.A."
The treatment of the Class 3 Secured Claim (on page 9 and 10 of the
Plan) is superseded and replaced in its entirety with the
following:
"Class 3 consists of Allowed Secured Claims of American Bank, N.A.
The Debtor will be obligated to make a $300,000.00 principal
payment on the modified Note no later than 60 days after the
Effective Date. The source of funds to make this payment shall be a
$300,000.00 capital contribution by Dr. Jaspreet S. Alang, the
Debtor's equity owner.
To secure the obligation to make the aforementioned $300,000.00
capital contribution, Dr. Alang shall separately agree with the
Bank to cause the owner of the improved real property in which Dr.
Alang's medical practice is located (i.e., an office condominium at
3880 Parkwood Blvd., Unit 304, Frisco, Texas 75034, hereinafter the
"Medical Building"), to grant to the Bank a first priority deed of
trust lien on the Medical Building, which the Bank will release at
the time of Dr. Alang's capital contribution and the Debtor's
payment to the Bank of the aforementioned $300,000.00 principal
reduction.
The rate of non-default interest payable on the Note will be
modified to 9% per annum. The maturity date of the Note shall be
modified to be the 365th day after the Effective Date, subject to
the Debtor's option to extend the maturity date for an additional 6
months. Debtor will make monthly interest-only payments on the
modified Note, beginning on the first day of the first month after
the Effective Date and continuing through the term of the modified
Note. Interest will begin to accrue on the Effective Date.
Debtor will make monthly payments equal to 1/12th of the estimated
amount of the real property taxes to become due on the Property for
the 2023 tax year, beginning on the first day of the first month
after the Effective Date and continuing through the term of the
modified Note. The estimated tax payments shall be held by the Bank
in escrow pending receipt of the 2023 tax statement on the Property
at which time the Bank shall remit the amount of the escrow tax
payments toward the 2023 tax statement. Debtor shall be responsible
for any shortfall in the amount of the 2023 taxes assessed against
the Property.
So long as the Debtor remains current on its monthly interest-only
payments and estimated tax payments and provided no further event
of default shall have occurred under the modified Note or any
document executed in connection with or securing the modified Note,
Debtor shall have the right to pay off the Note as modified herein
for $1,900,000.00 during the first twelve months of the term of the
modified Note.
The balance of any debt owed to the Bank in excess of the payments
shall be treated in Class 5 of this Plan. This Claim is Impaired."
Section 3.02 of the Disclosure Statement is hereby modified to add
the following sentence to the end of the section: "The asset values
stated in the Debtor's Schedules of Assets are based solely on the
Debtor's opinion."
The second sentence of Section 3.03 of the Disclosure Statement is
hereby superseded and replaced in its entirety with the following:
"The Secured Claim of $3,153,475.70 held by American Bank, N.A. is
the largest Claim in this bankruptcy case."
The third sentence of Section 3.05 of the Disclosure Statement is
hereby superseded and replaced in its entirety with the following:
"On November 11, 2022 the Debtor filed a motion seeking to enter
into a new Management Agreement with Universal Hospitality
Solutions, LLC to operate the Hotel."
A full-text copy of the First Modified Disclosure Statement dated
November 28, 2022, is available at https://bit.ly/3ESuwFA from
PacerMonitor.com at no charge.
Attorneys for Debtor:
Joyce W. Lindauer, Esq.
Joyce W. Lindauer Attorney, PLLC
1412 Main Street, Suite 500
Dallas, TX 75202
Tel: (972) 503-4033
Email: joyce@joycelindauer.com
About H&S Alang, LLC
H&S Alang, LLC, operates a Hampton Inn hotel located in Pearsall,
Texas. H&S Alang, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D. Tex. Case No. 22-40712) on June
6, 2022. In the petition filed by Jaspreet S. Alang, manager, the
Debtor disclosed up to $10 million in both assets and liabilities.
Judge Brenda T. Rhoades oversees the case.
Joyce W. Lindauer, Esq., at Joyce W. Lindauer Attorney, PLLC, is
the Debtor's counsel.
Pearsall Holdings, LLC, as secured creditor, is represented by
Kenneth Stohner Jr., Esq. at Jackson Walker LLP.
HANJRA TRUCKING: Taps Law Offices of Charles Wertman as Counsel
---------------------------------------------------------------
Hanjra Trucking Inc. seeks approval from the U.S. Bankruptcy Court
for the Eastern District of New York to employ the Law Offices of
Charles Wertman P.C. as its legal counsel.
The firm's services include:
(a) advising the Debtor with respect to its powers and duties in
the continued management and operation of its business;
(b) attending meetings and negotiations with representatives of
creditors and other parties-in-interest and advising and consulting
on the conduct of the Subchapter V case, including all of the legal
and administrative requirements of operating in Chapter 11;
(c) taking all necessary action to protect and preserve the
Debtor's estate including the prosecution of actions on behalf of
the Debtor's estate, the defense of any actions commenced against
the estate, negotiations concerning litigation in which the Debtor
may be involved, and objections to claims filed against the
estate;
(d) preparing legal papers;
(e) preparing and negotiating any transaction for the sale,
merger, joint venture or strategic investment in the Debtor;
(f) preparing and negotiating a Chapter 11 plan, disclosure
statement and all related agreements or documents, and pursuing
confirmation of such plan;
(g) appearing before the bankruptcy court, any appellate court
and the United States Trustee;
(h) performing other necessary legal services.
The firm will be paid at these rates:
Attorneys $300 to $495 per hour
Paraprofessionals $150 per hour
In addition, the firm will be reimbursed for out-of-pocket expenses
incurred.
The Debtor paid the firm an advance retainer of $7,500.
Charles Wertman, a partner at the Law Offices of Charles Wertman,
disclosed in a court filing that his firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Charles Wertman, Esq.
Law Offices of Charles Wertman P.C.
100 Merrick Road, Suite 304W
Rockville Centre, NY 11570
Tel: (516) 284-0900
Email: charles@cwertmanlaw.com
About Hanjra Trucking Inc.
Hanjra Trucking, Inc. is a company in Westbury, N.Y., which
provides transportation arrangement services.
Hanjra Trucking filed a petition for relief under Subchapter V of
Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No.
22-72237), with between $1 million and $10 million in both assets
and liabilities. Salvatore LaMonica has been appointed as
Subchapter V trustee.
Judge Robert E. Grossman oversees the case.
The Debtor is represented by Charles Wertman, Esq., at the Law
Offices of Charles Wertman P.C.
HILLENBRAND INC: Egan-Jones Retains 'BB+' FC Sr. Unsecured Ratings
------------------------------------------------------------------
Egan-Jones Ratings Company, on November 21, 2022, retained its
'BB+' foreign currency senior unsecured ratings on debt issued by
Hillenbrand Inc.
Headquartered in Batesville, Indiana, Hillenbrand, Inc.
manufactures and sells premium business-to-business products and
services.
HILTON WORLDWIDE: Egan-Jones Keeps B+ FC Sr. Unsecured Debt Rating
------------------------------------------------------------------
Egan-Jones Ratings Company, on November 22, 2022, retained its B+
foreign currency senior unsecured ratings on debt issued by Hilton
Worldwide Holdings Inc.
Headquartered in McLean, Virginia, Hilton Worldwide Holdings Inc.
operates as a holding company.
HOBBY LOBBY: Files Emergency Bid to Use Cash Collateral
-------------------------------------------------------
Hobby Lobby Marine LLC asks the U.S. Bankruptcy Court for the
District of New Jersey for authority to use cash collateral in
accordance with the budget, with a 15% variance, and provide
adequate protection.
The Debtor requires the use of cash collateral to maintain
operations in the ordinary course of business.
Although the Debtor has been historically profitable, recent years
have been difficult. Hurricane Sandy had a long-term impact on the
Debtor's profitability and saddled it with additional debt. Since
2020, supply chain issues resulting COVID-19 pandemic materially
hampered cash flow and the Debtor's ability to service its
indebtedness.
These issues ultimately culminated in the Debtor's senior secured
lender, Hanover Bank, as successor by merger to Savoy Bank, to call
a default under its credit facility with the Debtor on July 12,
2021. As of that time, the Bank claimed that it was owed $2.148
million, including three months of unpaid interest, late charges,
and escrows. The total amount owed to the Bank as of the Petition
Date (including interest, escrow amounts, and late fees claimed by
the Bank) was less than $2.4 million.
The Bank's own appraisal from March 2020 shows that the marina
property in Toms River, New Jersey, was valued at $3.5 million. The
Debtor believes the value is the same or higher today.
The bankruptcy filing was necessitated by the fact that the Bank
had scheduled a sheriff's sale to occur on November 29, 2022. The
Debtor believed that allowing a sheriff's sale to proceed would
have risked harming other creditors and would not have maximized
value.
In addition to the Bank's security interests, liens, rights, and
other interests in and with respect to its collateral, as adequate
protection for and to secure the payment of an amount equal to any
diminution in the value of its collateral, the Debtor proposes to
grant to the Bank security interests in and liens upon the all
assets of the Debtor and all hereafter-acquired assets of the
Debtor, of any kind or nature, wherever located, and the proceeds,
products, rents, and profits thereof, whether arising from section
552(b) of the Bankruptcy Code or otherwise, senior to any other
security interests, liens, or encumbrances, subject only to, in the
following order of priority: (a) valid, perfected, and enforceable
prepetition liens which were senior to the Bank’s respective
liens or security interests as of the Petition Date and (b) the
payment of the United States Trustee's fees, pursuant to 28 U.S.C.
section 1930.
As additional adequate protection to the Bank, beginning on January
10, 2023 and no later than the 10th day of every month thereafter,
the Debtor proposes to provide the bank with an "actual to budget"
reconciliation of all inflows and expenses listed in the Budget for
the immediately preceding month.
A copy of the motion is available at https://bit.ly/3gO2Tpd from
PacerMonitor.com.
About Hobby Lobby Marine LLC
Hobby Lobby Marine LLC operates a successful and long-standing
family-owned marina that has operated in Toms River, NJ since 1961.
In addition to selling new and used watercraft and boating
equipment, the Debtor rent 84 slips to customers, provide storage
solutions, and provide repair and other customary marine services.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. N.J. Case No. 22-19381) on November 28,
2022. In the petition signed by Robert Tweer, co-managing member,
the Debtor disclosed up to $10 million in both assets and
liabilities.
Douglas T. Tabachnik, Esq., at Law Offices of Douglas T. Tabachnik,
P.C., is the Debtor's counsel.
HOME ENERGY: Unsecureds Will Get 17.03% of Claims in 5 Years
------------------------------------------------------------
Home Energy Advisors, Inc., submitted a Renewed Combined Disclosure
Statement and Chapter 11 Plan of Reorganization for Small Business
dated November 28, 2022.
The Debtor continues to operate the business as a
debtor-in-possession. In the first 7 months of the bankruptcy
(March 21, 2022 through September 30, 2022), the Debtor averaged a
net cash flow of $602.82 per month.
In June 2022, Mr. Testoni had surgery inhibiting his ability to
work for a period time. As a result, July sales were only
$12,000.00. Since his recovery from surgery, he has worked
diligently in building back the Debtor's business and has made
significant changes in personnel and pay. As a result, in August,
revenues were in excess of $33,000.00, and in September, revenues
totaled $27,000.00.
As of August 2022, the Debtor substantially increased its sale
force, all of whom are on commission, and the Debtor's principal is
confident that sales will rebound to their pre-COVID-19 revenues
and projects that for the five-year plan, sales will average
$490,000.00 per year in gross revenues, with $3,667.00.00 per month
or $44,000.00 per year available for plan payments. In the first
year of the plan, gross revenues are predicted to be $37,000.00 per
month. In September 2022, Debtor had revenue of $27,725.00 and a
net profit of $1,789.46. Going forward, Debtor anticipates a larger
bottom line, even if the monthly gross revenue is basically
stagnant. The Debtor, as of November 2022, reduced the salary paid
to its president and the sums paid to its corporate trainer.
First as to the salary paid to Mr. Testoni. It will be reduced to
$8,000.00 per month (until sales exceed $100,000.00 per month) from
the current amount, which averaged $9,350.00 in the last two
months. Commencing with November, his independent contractor pay
has been reduced to $1,500.00 per week (until sales exceed
$100,000.00 per month). Had the trainer's pay been previously
limited to $1,500.00 per week, the Debtor would have realized an
additional $23,813.00 in net profit over the period that Debtor has
been in bankruptcy. The Renewed Plan requires $3,721.00 per month.
Reduction in salaries will result in sufficient net income to fund
the Plan.
Class 2 consists of all allowed unsecured general claims. There are
11 allowed general unsecured claims totaling $381,566.16. Class 2
creditors shall receive a total distribution in the amount of
$65,000.00 or 17.03% of their claims (the "Plan Payments"). The
Plan Payments will be made over 5 years in 20 quarterly payments of
$3,250.00. The first payment will be made on or before the
Effective Date and continuing every quarter thereafter. This class
is impaired.
This includes an estimate of the BMW unsecured claim in the amount
of $35,000.00 due to the turnover of the leased vehicle. This
amount is subject to change; however, the claim will still be paid
17.03% so as not to reduce the payments to other unsecured
creditors. As a result of any change in the BMW claim amount, it
may or may not slightly increase the plan payment.
Upon the effective date of the Debtor's Combined Disclosure and
Plan, Benjamin Testoni shall remain the only shareholder in the
newly reorganized Debtor.
Upon the effective date of the Debtor's Combined Disclosure and
Plan, the equity interest holder shall remain the equity
shareholder in the newly reorganized Debtor. In order to assist in
funding Debtor's business operations under the Combined Disclosure
and Plan, the Debtor may retain any cash on hand, funds in its bank
accounts, and amounts received from accounts receivable to pay
accounts payable.
A full-text copy of the Renewed Combined Disclosure Statement and
Plan dated November 28, 2022, is available at
https://bit.ly/3ugYcHG from PacerMonitor.com at no charge.
Counsel for the Debtor:
Chad Van Horn, Esq.
VAN HORN LAW GROUP, P.A.
500 N.E. 4th Street, Suite 200
Fort Lauderdale, FL 33301
Telephone: (954) 765-3166
Facsimile: (954) 756-7103
E-mail: Chad@cvhlawgroup.com
About Home Energy Advisors
Home Energy Advisors, Inc. sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. M.D. Fla. Case No. 22-01106) on March
21, 2022, listing as much as $1 million in both assets and
liabilities. Ben Testoni, chief executive officer and managing
member, signed the petition.
Judge Caryl E. Delano oversees the case.
Chad Van Horn, Esq., at Van Horn Law Group, PA serves as the
Debtor's legal counsel.
IGLESIAS DIOS: Exclusivity Period Extended to Dec. 9
----------------------------------------------------
Iglesias Dios Es Amor, Inc. received court approval to remain in
control of its bankruptcy until next week.
Judge Edward Godoy of the U.S. Bankruptcy Court for the District of
Puerto Rico issued an order extending to Dec. 9 the period during
which only Iglesias Dios Es Amor can file a Chapter 11 plan of
reorganization and disclosure statement.
About Iglesias Dios Es Amor
Iglesias Dios Es Amor, Inc., filed its voluntary petition for
relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.P.R.
Case No. 21-03508) on Nov. 29, 2021, with as much as $1 million
in both assets and liabilities. Elias Reyes Ortiz, president,
signed the petition.
Judge Edward A. Godoy oversees the case.
The Debtor tapped Gerardo L. Santiago Puig, Esq., at Santiago Puig
Law Offices as legal counsel and Juan C. Pomales Torres as
accountant.
INFINITE SYNERGY: Seeks $450 in Cash Collateral
-----------------------------------------------
Infinite Synergy Insurance Agency, LLC asks the U.S. Bankruptcy
Court for the District of Oregon, for authority to use cash
collateral the amount of $450 and provide replacement liens to
Velocity Commercial Capital, LLC, effective as of November 8,
2022.
The Debtor requires the use of cash collateral to maintain its
business operations and protect its ability to reorganize in
accordance with chapter 11 of the Bankruptcy Code.
Prior to the commencement of the case, the Debtor entered into a
secured Note agreement with Velocity Commercial on May 31, 2019, to
assist with purchase of a property located at 16015 SE Oatfield
Road, Milwaukie, OR 97267. The Note was secured to the Property by
a deed of trust in favor of the holder. The beneficial interest in
the Note and Deed of Trust was subsequently sold to US Bank, N.A.
as Indenture Trustee for VCC 2020-MC1 Trust on July 28, 2022. The
Note and Deed of Trust contained a commercial security agreement
covering rents from the Property.
The Creditor's security interest is superior to those of all other
creditors known to the Debtor and was perfected by the filing of a
Deed of Trust with the Clackamas County Recorder dated May 31, 2019
as instrument number 2019-029981.
In order to adequately protect the interests of the Creditor in the
Prepetition Collateral and for the Debtor's use of cash collateral
as requested in the motion, the Debtor proposes to provide
replacement liens pursuant to 11 U.S.C. section 361(2) to property
of the Estate of the kind which presently secure the indebtedness
owed to the Creditor.
A copy of the motion is available at https://bit.ly/3EWbspQ from
PacerMonitor.com.
About Infinite Synergy Insurance Agency, LLC
Infinite Synergy Insurance Agency, LLC is the fee simple owner of a
property located at 6015 SE Oatfield Rd. in Milwaukie, Ore., having
a comparable sale value of $975,000.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Ore. Case No. 22-31983) on November 29,
2022. In the petition signed by Desiree Magcalas, member, the
Debtor disclosed $1,038,510 in assets and $688,881 in liabilities.
Judge Teresa H. Pearson oversees the case.
Theodore J. Piteo, Esq., at Michael D. O'Brien and Associates,
P.C., is the Debtor's counsel.
IONIS PHARMACEUTICALS: Egan-Jones Retains B+ FC Sr. Unsec. Ratings
------------------------------------------------------------------
Egan-Jones Ratings Company, on November 22, 2022, retained its B+
foreign currency senior unsecured ratings on debt issued by Ionis
Pharmaceuticals Inc.
Headquartered in Carlsbad, California, Ionis Pharmaceuticals, Inc.
operates as a biotechnology company.
ISLAND DOG TOO: Gets OK to Hire Bruner Wright as Legal Counsel
--------------------------------------------------------------
Island Dog Too, LLC received approval from the U.S. Bankruptcy
Court for the Northern District of Florida to employ Bruner Wright,
P.A. to serve as legal counsel in its Chapter 11 case.
The firm will be paid at these rates:
Robert C. Bruner $450 per hour
Byron Wright III $375 per hour
Paralegal $150 per hour
The firm received a retainer in the amount of $15,000.
Byron Wright III, Esq., a member of Bruner Wright, disclosed in a
court filing that his firm is a "disinterested person" as that term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Byron Wright III, Esq.
Bruner Wright, PA
2810 Remington Green Circle
Tallahassee, FL 32308
Tel: (850) 385-0342
Fax: (850) 270-2441
Email: twright@brunerwright.com
About Island Dog Too
Island Dog Too, LLC a company in Eastpoint, Fla., filed its
voluntary petition for Chapter 11 protection (Bankr. N.D. Fla. Case
No. 22-40353) on Nov. 4, 2022, with up to $50,000 in assets and up
to $10 million in liabilities. Sheryl H. Simmons, manager of Island
Dog Too, signed the petition.
Byron Wright III, Esq., at Bruner Wright, PA serves as the Debtor's
legal counsel.
JA SEEKINS PAINTING: Gets OK to Hire Hingston Miller as Accountant
------------------------------------------------------------------
JA Seekins Painting, Inc. received approval from the U.S.
Bankruptcy Court for the Western District of Washington to employ
Hingston Miller Hingston, PLLC as accountant.
The firm will assist the Debtor in tax preparation and bookkeeping
including, but not limited to, the preparation of state excise tax
returns and federal income tax returns.
The firm will be paid at its hourly rate of $150.
As disclosed in court filings, Hingston is a "disinterested person"
as the term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Hingston Miller Hingston, PLLC
20700 44th Ave W #210
Lynnwood, WA 98036
Tel: (206) 285-2777
About JA Seekins Painting
JA Seekins Painting, Inc. sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. W.D. Wash. Case No. 22-11316) on Aug.
14, 2022, with up to $50,000 in assets and up to $500,000 in
liabilities. David Seekins, president, signed the petition.
Judge Christopher M. Alston oversees the case
Thomas D. Neeleman, Esq., at Neeleman Law Group, P.C. and Hingston
Miller Hingston, PLLC serve as the Debtor's legal counsel and
accountant, respectively.
JGR GROUP: Wins Cash Collateral Access Thru Jan 2023
----------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
authorized JGR Group, Inc. to use cash collateral on an interim
basis for the period spanning December 1 through January 6, 2023.
The Court said the Debtor may only make payments as set forth in
the Third Amended Budget and is not authorized to make any
additional payments without prior approval of the Court, including
any payments to RGS Consulting Group, G. Sadykov, or R. Sadykov.
The Interim Order as modified will otherwise remain in full force
and effect.
On October 3, 2022, the Court entered a Sixth Amended Emergency
Interim Order (I) Authorizing Debtor's Use of Cash Collateral, (II)
Providing Adequate Protection Thereof And (III) Scheduling A Final
Hearing adjourning the Final Hearing for November 2 at 1 p.m. and
authorizing the Debtor to continue to use cash collateral on an
interim basis in accordance with the Emergency Interim Order as
modified therein through November 3, 2022.
On October 31, 2022, the Debtor and Hartline jointly requested an
adjournment of the Final Hearing in order to allow the Parties an
extension of time to discuss the terms of the Proposed Settlement.
The final hearing on the matter is adjourned to January 5 at 10
a.m. via Zoom.
A copy of the order is available at https://bit.ly/3H15c2D from
PacerMonitor.com.
About JGR Group, Inc.
JGR Group, Inc. is a general contractor focused on residential
renovation. The Debtor sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 22-10710) on June 3,
2022. In the petition signed by Gennadiy Sadykov, president, the
Debtor disclosed up to $10 million in both assets and liabilities.
Judge Lisa G. Beckerman oversees the case.
Leo Jacobs, Esq., at Jacobs PC is the Debtor's counsel.
JOGI PACK: Kathy Lynn Offers $750K for Substantially All Assets
---------------------------------------------------------------
Jogi Pack & Ship Services, LLC, asks approval from the U.S.
Bankruptcy Court for the Middle District of Florida to sell
substantially all assets free and clear of all liens, claims,
encumbrances, and interests to Kathy Lynn pursuant to their Asset
Purchase Agreement for $750,000.
The Debtor owns and operates a The UPS Store franchise as a
franchisee of The UPS Store, Inc. ("TUPSS"), which is a subsidiary
of United Parcel Service, Inc. ("UPS").
The Debtor believes that the following entities claim to hold a
valid lien(s) against the purchased Assets: TUPSS; U.S. Small
Business Administration ("SBA"); American Express National Bank
("AMEX"); and ASSN Co. Of these entities, only TUPSS and the SBA
filed a proof of claim. The Debtor did not list AMEX as a creditor
because it was current on its payments to AMEX as of the Petition
Date and has paid AMEX in the ordinary course of business. The
Debtor does not know which creditor ASSN represents.
On Aug. 31, 2022, the Debtor filed the Debtor's Motion Pursuant to
Fed. R. Bankr. P. 9019 for Order Approving Compromise and
Settlement Agreement between Debtor and The UPS Store, Inc., which
the Court granted on Sept. 27, 2022.
Pursuant to the Settlement Agreement, the Debtor hired a business
broker to market and sell the Debtor's business. The Debtor's
broker marketed the Debtor's business and received interest from no
less than 10 interested parties. Ultimately, the highest and best
offer was submitted by the Purchaser, and the Debtor accepted the
offer.
TUPSS has already approved Lynn to be the Purchaser, which has
paved the way for a successful sale. Lynn's offer was in the
amount of $750,000 as reflected in the APA.
By the instant Motion, the Debtor seeks the Court's approval of the
sale of its Assets to the Purchaser. By separate Motion, it is
also seeking the Court's approval to assume and assign to Lynn its
lease for the premises in which it operates. The Assets to be sold
as part of the Debtor as a going concern include those listed in
the APA. Accordingly, the Debtor's right, title and interest in
all of the Assets will be sold free and clear of any and all liens,
security interests, claims, charges or encumbrances.
Pursuant to the Settlement Agreement between the Debtor and TUPSS,
all net sale proceeds are to be wire transferred directly to TUPSS
at closing. Administrative expenses payable to the Debtor's
attorneys and the Subchapter V Trustee will be paid out of its
operating account in the ordinary course of business. The
additional fees and costs payable to the Debtor's counsel from July
1, 2022 through the closure of the case will be capped at $50,000,
and the additional fees and costs payable to the Sub-Chapter V
Trustee will be capped at $5,200.
At the Closing, the Purchaser will pay the Purchase Price and
complete all final documentation associated with the transaction.
Subject to the terms of the APA, the Closing will occur on Jan. 17,
2023.
A copy of the APA is available at https://tinyurl.com/2tsy97pv from
PacerMonitor.com free of charge.
About Jogi Pack & Ship Services
Jogi Pack & Ship Services, LLC, a limited liability company in
Florida, sought Chapter 11 bankruptcy protection (Bankr. M.D. Fla.
Case No. 22-00809) on April 22, 2022, with up to $500,000 in both
assets and liabilities. Divyan N. Patel, managing member,
signed the petition.
Judge Jason A. Burgess oversees the case.
The Debtor tapped Bruner Wright PA as legal counsel and E&S
Bookkeeping and Tax Services, LLC as accountant.
KATE BARTENWERFER: SCOTUS to Hear Bankruptcy Case on Dec. 6
-----------------------------------------------------------
The bankruptcy case, Bartenwerfer v. Buckley, will be argued before
the U.S. Supreme Court on Tuesday, Dec. 6.
Weil, Gotshal & Manges represents respondent Kieran Buckley, and
the team is led by Washington, D.C.-based partner Zachary Tripp,
Co-Head of Weil's Appeals and Strategic Counseling practice.
Mr. Tripp will deliver the argument on the respondent's behalf.
Respondent Kieran Buckley is the victim of a fraud perpetrated by
Petitioner Kate Bartenwerfer and her business partner. Bartenwerfer
v. Buckley addresses the question of whether a debt resulting from
a business partner's fraud counts as a "debt for money obtained by
fraud" that cannot be avoided in bankruptcy. It is an important
question of bankruptcy law on which the Courts of Appeals are
divided. Weil's work on this cutting-edge bankruptcy case leverages
the firm's market-leading bankruptcy and appellate capabilities.
The Weil team's brief filed on Kieran Buckley's behalf can be
viewed at
https://www.supremecourt.gov/DocketPDF/21/21-908/238543/20220922123540131_21-908%20Buckley%20Br..pdf.
The Weil team also includes associates Robert Niles-Weed, Rachel
Kaplowitz and Sara Weiss. Weil's co-counsel is Janet Brayer of the
Law Office of Janet Brayer.
KEYS MEDICAL STAFFING: Wins Cash Collateral Access Thru Feb 2023
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Georgia,
Gainesville Division, authorized Keys Medical Staffing, LLC to use
cash collateral on an interim basis in accordance with the budget,
through the date of the final hearing.
The Debtor requires the use of cash collateral to fund critical
operations.
The Debtor is permitted to pay its independent contractors that are
temporarily staffed at work sites, the amount that is actually
billed by the independent contractors, regardless of the amount
provided for in the Budget for independent contractor
compensation.
All of the Debtor's clients, including SavaSeniorCare
Administrative Services, LLC, are authorized to send funds they are
holding for services already provided directly to the Debtor.
Sava, its affiliates, or any other client that sends funds to the
Debtor in accordance with the Interim Order will not be liable to
either the Debtor or its lender to the extent of the amount of
funds that are actually paid to the Debtor, and any payments by an
Account Debtor will be credited against, and in satisfaction of,
invoices that are undisputed by the Account Debtor.
On June 2, 2020, the Debtor entered into a financing agreement with
ARA, Inc. d/b/a Lone Oak Payroll, a factoring company, and executed
a Conditional Letter of Agreement for Factoring and Payroll
Services. The Debtor asserts that the Factoring Agreement is a loan
rather than a true sale of receivables.
The Lender asserts that:
-- it owns certain accounts receivable which it purchased from
the Debtor under the Factoring Agreement;
-- it holds a security interest in all of the Debtor's
personal property as security for all amounts owed to the Lender by
the Debtor; and
-- as of June 29, 2022, the Debtor was indebted to it under
the Factoring Agreement in the total amount of approximately
$1,085,833, exclusive of attorney's fees and other items
recoverable under the Factoring Agreement and applicable law.
The Debtor disputes the amount owed.
SavaSeniorCare is a pre-petition client of the Debtor that, upon
information and belief, owes funds for work performed.
As adequate protection for any diminution in the value of ARA's
interests in the Pre-Petition Collateral resulting from the use of
cash collateral, the Lender is valid, binding, enforceable and
automatically perfected liens on and security interests in (i) all
personal property of the Debtor that is of a kind or nature
described as Collateral in the Factoring Agreement, whether
existing or arising prior to, on or after the Petition Date, and
(ii) all other personal property of the Debtor, wherever located
and whether created, acquired or arising prior to, on or after the
Petition Date.
The Adequate Protection Liens will at all times be senior to the
rights of the Debtor and any successor trustee or estate
representative of the Debtor's estate, and any security interest or
lien upon the Debtor's assets that is avoided or otherwise
preserved for the benefit of the Debtor's estate under Section 551
or any other provision of the Bankruptcy Code will be subordinate
to the Adequate Protection Liens. The Adequate Protection Liens and
all claims, rights, interests, administrative claims and other
protections granted to or for the benefit of the Lender pursuant to
the Order and the Bankruptcy Code will constitute valid,
enforceable, nonavoidable and duly perfected security interests and
liens.
As additional adequate protection, during the Interim Period the
Debtor will make a $10,000 payment to the Lender from the Sava
Escrowed Funds. The Adequate Protection Payment will be applied to
reduce the principal amount that the Debtor owes to ARA as of the
Petition Date.
The final hearing on the matter is scheduled for February 2, 2023,
at 10:30 a.m.
A copy of the order is available at https://bit.ly/3AZ4A9U from
PacerMonitor.com.
About Keys Medical Staffing, LLC
Keys Medical Staffing, LLC is a medical staffing company formed by
Dr. Theresa Jones and Dr. Linnie Fletcher in 2016.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ga. Case No. 22-20573) on June 28,
2022. In the petition filed by Christy Collins-French, chief
operating officer, the Debtor disclosed up to $10 million in assets
and up to $1 million in liabilities.
Judge James R. Sacca oversees the case.
William Rountree, Esq., at Rountree, Leitman, Klein & Geer, LLC,
serves as the Debtor's counsel.
LAPEER AVIATION: Bankr. Appeal Will Proceed as a Right, Court Says
------------------------------------------------------------------
In the appealed case styled CARL JENNINGS et al., Appellants, v.
LAPEER AVIATION, INC., Appellee, Civil Case No. 22-10511, (E.D.
Mich.), District Judge Linda V. Parker denies the motion for leave
to file bankruptcy appeal filed by Appellants Carl Jennings,
Christopher Lewis, Ron Keil, and Betty Keil, because the appeal
will proceed as proceed as a right.
On Jan. 28, 2022, the bankruptcy court denied the Appellants'
motion to dismiss Lapeer Aviation, Inc.'s Chapter 11 bankruptcy
filing. The Appellants moved to dismiss LAI's bankruptcy case for
lack of corporate authority to file and bad faith. On Feb. 22,
2022, the bankruptcy court denied the Appellants' motion for
reconsideration.
The bankruptcy court did not provide its reasoning for denying the
motion to dismiss, but it did so in its decision denying the motion
for reconsideration. The bankruptcy court held that, pursuant to a
stock purchase agreement, LAI was purchased, and therefore is owned
by, the Debtor CG Acquisitions. Because the Debtor CGA is member
operated, and it is undisputed that there is no operating
agreement, the bankruptcy court looked to the Michigan Limited
Liability Act to determine who had the authority to file for
bankruptcy. The bankruptcy court concluded that Gene Kopzcyk was
the sole member of CGA because of Appellant Lewis' transfer of
rights to Appellant Jennings; and therefore, he alone had the
corporate authority to file bankruptcy on behalf of the two
entities. In making this determination, the court relied on
Michigan Compiled Laws which provides that "a member ceases to be a
member when the member's entire membership interest is assigned."
Presently, the Appellants assert that they are entitled to an
appeal as of right pursuant to 28 U.S.C. Section 158(a)(1), or in
the alternative, should be granted leave to file an interlocutory
appeal pursuant to 28 U.S.C. The Debtor maintained that the appeal
should be denied for lack of jurisdiction.
The District Court notes of the contested matter -- whether Kopczyk
had the requisite corporate authority to file bankruptcy on behalf
of both the Debtor LAI and the Debtor CGA. The Court concludes that
the determination regarding Kopczyk's corporate authority is
procedurally complete and determinative of the Appellants'
substantive rights -- which will dictate whether the bankruptcy
case proceeds.
The District Court holds that the order on appeal is final for
purposes of 28 U.S.C. Section 158(a). Therefore, leave to appeal is
not required and an interlocutory appeal is not applicable.
Accordingly, the Court denies the Appellants' Motion for Leave to
Appeal Bankruptcy Court because the appeal will proceed as of
right.
A full-text copy of the Opinion and Order dated Nov. 21, 2022, is
available at https://tinyurl.com/mr23ecxw from Leagle.com.
Case Background
On Dec. 26, 2018, creditor Carl Jennings filed a lawsuit against
LAI alleging that LAI owed him certain sums as a result of an
alleged contract which allegedly existed prior to the acquisition
of the LAI shares by CG. LAI defended against this lawsuit and
continues to believe that the claims do not have merit.
After the filing of the state court lawsuit, Mr. Jennings
intentionally and repeatedly interfered with the business
operations of LAI. As a result, LAI filed suit against Mr.
Jennings seeking damages and other relief. On Aug. 26, 2020, Mr.
Jennings received an assignment of any interest in CG and/or LAI
Christopher Lewis may have had. This assignment caused Gene
Kopczyk to be the only member of LAI's only shareholder CG, to the
extent that this was not already the case.
Notwithstanding the fact that he had no right to manage or control
the affairs of LAI or CG, Mr. Jennings attempted to use the
assignment he received in an effort to further interfere with the
Debtors' business operations.
About Lapeer Aviation
Since 1997, Lapeer Aviation, Inc., has operated as a fixed-based
operator ("FBO") at the "D95" airport in Mayfield Township,
Michigan. D95 is home to runways, hangers, and other
accommodations which LAI operates pursuant to agreement with
Mayfield Township. The FBO offers a wide range of services to
aviators across the country, including but not limited to aircraft
maintenance. LAI also operates a flight school at D95 where
aspiring aviators can take classes in an effort to earn a pilot's
license.
All of the shares of LAI were purchased by CG Acquisitions, LLC, on
June 22, 2018. Since that date, the current member of CG Gene
Kopczyk has been involved with FBO operations. The FBO currently
has 8 full time employees and is a dealer for one of the largest
manufacturers of avionics equipment in the country.
Lapeer Aviation, Inc., filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Mich. Case No.
21-31500) on Nov. 5, 2021, listing under $1 million in both assets
and liabilities. Gene Kopczyk, as president, signed the petition.
CG Acquisitions, LLC, an affiliate, also sought Chapter 11
protection (Bankr. E.D. Mich. Case No. 21-31511).
Judge Joel D. Applebaum oversees the cases.
Winegarden, Haley, Lindholm, Tucker & Himelhoch, PLC, serves as the
Debtors' legal counsel.
MARKAM TRANSPORT: Court OKs Deal on Cash Collateral Access
----------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Michigan,
Southern Division, authorized Markam Transport, Inc. to use cash
collateral on an interim basis in accordance with the budget and
its agreement with Huntington Bank and the Small Business
Administration.
The Court said the Debtor is permitted to use cash collateral only
for reasonable expenses of insurance for its equipment and rent for
equipment storage.
The Debtor is also permitted to sell a 2017 Entyre, a 2017
Freightliner Columbia 3 Axle tractor and a 2021 Entyre Stinger to
different buyers. The sales are free and clear of Huntington's
security interest in the properties. The Debtor is directed to pay
100% of the proceeds from the sales to Huntington for application
to debt owed to Huntington.
The final hearing on the matter is set for December 12, 2022 at 11
a.m.
A copy of the order is available at https://bit.ly/3VF9cKn from
PacerMonitor.com.
About Markam Transport, Inc.
Markam Transport, Inc. is part of the general freight trucking
industry. The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Mich. Case No. 22-48936) on November
14, 2022. In the petition signed by Andrew Mark Donatiello,
president, the Debtor disclosed up to $10 million in both assets
and liabilities.
Judge Mark A. Randon oversees the case.
Joseph K. Grekin, Esq., at Schafer and Weiner, PLLC, is the
Debtor's counsel.
MEND CORRECTIONAL: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: MEnD Correctional Care, PLLC
1908 Krutchen Court South
Sartell, MN 56377
Case No.: 22-60407
Business Description: MEnd Correctional is a health care services
and management company which provides
all related healthcare services, including
physician and/or physician assistant
staffing, nursing and medical assistant
staffing, and administrative
responsibilities.
Chapter 11 Petition Date: November 30, 2022
Court: United States Bankruptcy Court
District of Minnesota
Judge: Hon. Michael E. Ridgway
Debtor's Counsel: Steven B. Nosek, Esq.
STEVEN B. NOSEK, P.A.
Attorney at Law
2812 Anthony Lane S, #200
St. Anthony, MN 55418
Tel: 612-335-9171
Fax: 612-789-2109
Email: snosek@noseklawfirm.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Todd Leonard, MD CCHP-P, president and
chief medical officer.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/H2RAZAQ/MEnD_Correctional_Care_PLLC__mnbke-22-60407__0001.0.pdf?mcid=tGE4TAMA
MESSAGE IN ME: Seeks to Hire Craig M. Geno as Legal Counsel
-----------------------------------------------------------
Message In Me Ministries, A Non-Profit Corporation, seeks approval
from the U.S. Bankruptcy Court for the Northern District of
Mississippi to employ the Law Offices of Craig M. Geno, PLLC as its
counsel.
The firm will render these legal services:
(a) advise the Debtor regarding questions arising from certain
contract negotiations which will occur during its business
operation;
(b) evaluate and object to claims of various creditors;
(c) appear in, prosecute, or defend suits and proceedings, and
take all necessary steps and other matters connected with the
affairs of the Debtor's estate;
(d) represent the Debtor in court hearings and assist in the
preparation of legal papers;
(e) advise and consult with the Debtor in connection with any
reorganization plan; and
(f) perform such other legal services on behalf of the
Debtor.
The firm will be paid at these rates:
Craig M. Geno, Esq. $400 per hour
Associates $275 per hour
Paralegals $175 to $200 per hour
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a retainer of $2,000, which includes $1,738
filing fee.
Craig Geno, Esq., an attorney at the Law Offices of Craig M. Geno,
PLLC, disclosed in a court filing that his firm is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached at:
Craig M. Geno, Esq.
Law Offices of Craig M. Geno, PLLC
587 Highland Colony Parkway
Ridgeland, MS 39157
Tel: (601) 427-0048
Email: cmgeno@cmgenolaw.com
About Message In Me Ministries,
A Non-Profit Corporation
Message in Me Ministries, a Non-Profit Corporation, filed a Chapter
11 bankruptcy petition (Bankr. N.D. Miss. Case No. 22-12764) on
Oct. 25, 2022, with as much as $1 million in both assets and
liabilities. Judge Selene D. Maddox oversees the case.
The Debtor is represented by the Law Offices of Craig M. Geno,
PLLC.
METRO SERVICE: Wins Cash Collateral Access Thru Dec 31
------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Louisiana
authorized Metro Service Group, Inc. to use cash collateral on a
final basis in accordance with the budget, with a 20% variance,
through December 31, 2022.
The Debtor and McCormick 101, LLC admit, stipulate, acknowledge and
agree that the Debtor granted to JPMorgan Chase Bank, N.A., who
thereafter assigned same to McCormick, certain continuing valid and
first-priority liens and security interests in and to, among other
things, all of the Debtor's personal property, equipment, general
intangibles, contracts, accounts receivable and the proceeds
thereof, including, without limitation, all cash collateral
generated and/or in the Debtor's possession as of the Petition Date
to secure all of the Debtor's prepetition obligations to
McCormick.
As partial adequate protection for the Debtor's use of cash
collateral, McCormick is granted replacement security interests in
and liens upon assets of the Debtor and its estate and all proceeds
and products of that personal property, and distributions thereon,
and post-petition accounts and cash to the extent that McCormick
prepetition possessed a valid and perfected security interest and
lien in any such accounts and/or cash, in the same respective
priority they held prior to the Petition Date.
The respective Adequate Protection Liens granted to McCormick will
be subject only to the Carve-Out and valid, perfected, enforceable,
and unavoidable liens and security interests granted by the Debtor
or operation of law to any person or entity that were superior in
priority to the prepetition security interests and liens held by
McCormick.
The Carve-Out means (i) the unpaid fees and expenses of the Clerk
of the Bankruptcy Court and the U.S. Trustee pursuant to 28 U.S.C.
section 1930(a)(6) and 28 U.S.C. section 156(c), (ii) payment of
any budgeted item, exclusive of Professional Fees, that was
incurred but unpaid at the time the Debtor's right to use cash
collateral is terminated; and (iii) the reasonable unpaid fees,
disbursements, costs, and expenses, not to exceed the total of
$75,000 per month, incurred by the Debtor's professionals and any
professional retained by any official committee of unsecured
creditors or other similar committee appointed by the Bankruptcy
Court prior to the termination of the use of cash collateral and in
accordance with the Budget, to the extent allowed by the Bankruptcy
Court, whether by interim order, procedural order or otherwise.
In addition to the Adequate Protection Liens, the Court grants
McCormick a superpriority lien against the Debtor and its estate
with priority over any and all other expenses and claims entitled
to priority under Section 507(a) of the Bankruptcy Code (except for
the Carve Out) to the extent of any diminution in the value of
McCormick's cash collateral, and to the fullest extent provide for
in Section 507(b) of the Bankruptcy Code.
Notwithstanding its Adequate Protection Liens and Superpriority
Claim, McCormick may not claw back any payment made pursuant to the
approved Budget. The Debtor each month will escrow the $75,000
Professional Fee Cap and the liens and claims granted will not
attach to the escrow.
McCormick is further entitled to periodic payments of $110,000
payments per month. These payments will be made by wire transfer
pursuant to the wire instructions provided by McCormick to the
Debtor.
Pursuant to the Interim Order, McCormick is entitled to be paid
twice monthly in payments of $55,000 each, commencing on October 21
through and including the week of December 3, with single payments
in the amount of $110,000 commencing thereafter. Pursuant to the
Final Order, commencing after the final $55,000 payment due the
week of December 3, Metro will pay McCormick a single payment
totaling $110,000 within five business days of the day that Metro
receives a contractual payment from the City of New Orleans.
The Debtor will: (a) continue to keep its assets fully insured
against all loss, peril and hazard; and (b) pay any and all
post-petition taxes, assessments and governmental charges with
respect to the collateral that serves as security for the McCormick
debt that are billed after the Petition Date.
The Debtor's right to use cash collateral will terminate
immediately if the City of New Orleans terminates its contract(s)
for residential or commercial waste collection with Metro. The
Debtors' right to use cash collateral with terminate for breach of
the Final Order if, after written notice given the Debtor's
counsel, the Debtor fails to cure its default within three business
days of such notice. McCormick's failure to seek relief or
otherwise exercise its rights and remedies under the Interim Order
will not constitute a waiver of any of its rights thereunder.
A copy of the order and the Debtor's budget is available at
https://bit.ly/3VkImax from PacerMonitor.com.
The budget provides for total expenses, on a weekly basis, as
follows:
$359,084 for the week ending December 3, 2022;
$477,194 for the week ending December 10, 2022;
$269,732 for the week ending December 17, 2022;
$278,688 for the week ending December 24, 2022; and
$439,637 for the week ending December 31, 2022.
About Metro Service Group, Inc.
Metro Service Group, Inc. is a multi-faceted corporation with
specific expertise and certifications in the areas of Environmental
Services, Construction/Demolition, and Disaster Response and
Recovery. Metro Service is a licensed contractor, certified in
building construction; heavy construction; highway, street and
bridge construction; municipal and public works construction, and
solid waste management.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. La. Case No. 22-11197) on October 6,
2022. In the petition signed by Jimmie Woods, president, the Debtor
disclosed up to $50 million in both assets and liabilities.
Judge Meredith S. Grabill oversees the case.
Douglas S. Draper, Esq., at Heller Draper & Horn, LLC, is the
Debtor's counsel.
MOLECULAR IMAGING: Court OKs Cash Collateral Access Thru Jan 2023
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois,
Eastern Division, authorized Molecular Imaging Chicago LLC to use
cash collateral on an interim basis in accordance with the budget,
with a 10% variance, through January 4, 2023.
Byline Bank and any other lien claimants are granted and will have
post-petition replacement liens, to the extent and with the same
priority as held pre-petition, in and to the cash collateral and
all post-petition property of the Debtor of the same type or kind
substantially equivalent to the pre-petition Collateral.
A further hearing on the matter is set for January 3, 2023 at 1:30
p.m.
A copy of the order is available at https://bit.ly/3OTmVeE from
PacerMonitor.com.
About Molecular Imaging Chicago LLC
Molecular Imaging Chicago LLC is dedicated to providing diagnostic
testing services, including PET/CT, MRI (Open and High Field),
Diagnostic CT, EMG/NCV, Ultrasound, Arthrogram, and Digital X-Ray
services.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Court (Bankr. N.D. Ill. Case No. 22-10864) on September
22, 2022. In the petition signed by Rajeev Batra, managing member,
the Debtor disclosed up to $500,000 in assets and up to $10 million
in liabilities.
Judge Jacqueline P. Cox oversees the case.
Gregory K. Stern, Esq., at Gregory K. Stern, P.C., is the Debtor's
counsel.
MUSCLE MAKER: Launches Vertical Integration Initiative With AGGIA
-----------------------------------------------------------------
Muscle Maker, Inc., the parent company of Muscle Maker Grill
restaurants, Pokemoto Hawaiian Poke and SuperFit Foods meal prep,
announced its new vertical integration initiative by forming a new
wholly owned subsidiary, Sadot LLC, and hiring AGGIA LLC FZ to
perform the day-to-day operations of the new subsidiary. AGGIA is
an international consulting firm constituted of senior executives
with significant backgrounds in the food and agri supply chain
industries.
AGGIA's team possesses expertise on moving various grains and other
food products around the world. Sadot LLC will primarily
participate in activities such as sourcing, distributing and
production of agriculture products. A typical transaction consists
of shipping grains via cargo ship from one country to another
containing 25,000 to 70,000 metric tons of grains with values
ranging between $5 million and $40 million dollars per shipment.
These transactions could be thought of as "truckers of the seas"
and an integral part of feeding the world.
The Company has engaged AGGIA on a pay-for-performance basis.
AGGIA only earns shares of Muscle Maker common stock if net income
is generated by Sadot LLC. The shares of common stock are
calculated by dividing the net income generated for an applicable
quarter by a premium share price of $1.5625 per share. Over time,
AGGIA can gain control of Muscle Maker's Board of Directors once
$9.9 million in net income is generated by Sadot LLC. AGGIA may
earn up to 14,424,275 shares of common stock, which would require
Sadot LLC generating $22,537,929 in net income. Upon AGGIA earning
the maximum amount of shares of common stock, if net income is
generated, it shall be accrued as debt.
Michael Roper, Muscle Maker's CEO, commented, "this is a unique
opportunity for Muscle Maker. We get to partner with industry
experts in international commodity, merchandising and shipping who
have been successful in the past building significant agricultural
businesses. AGGIA only earns shares of common stock based on our
new subsidiary generating net income calculated at a premium of
$1.5625 per share. We were attracted to this structure as it is
performance driven, providing for compensation only if net income
is generated."
Roper continued, "another unique component about this opportunity
is while we build the vertically integrated company, the current
Muscle Maker team will be able to remain focused on the franchising
and growth strategy, continue to grow the Pokemoto franchise
business model, and open the door for FMCG (fast moving consumer
goods) distribution."
Any incremental costs incurred by Muscle Maker will be paid monthly
by Sdaot LLC and all cash on hand in Muscle Maker today remains
focused on the Pokemoto franchise strategy.
The arrangement with AGGIA provides that certain components be
approved by the shareholders of Muscle Maker. A special meeting of
the shareholders will be announced shortly with the goal of
approving the transaction.
About Muscle Maker
Headquartered in League City, Texas, Muscle Maker, Inc. is the
parent company of "healthier for you" brands delivering food
options to consumers through traditional and non-traditional
locations such as military bases, universities, ghost kitchens,
delivery and direct to consumer ready-made meal prep options.
Brands include Muscle Maker Grill restaurants, Pokemoto Hawaiian
Poke, SuperFit Foods meal prep and multiple ghost kitchen brands
such as Meal Plan AF, Wrap it up Wraps, Bowls Deep, Burger Joe's,
MMG Smoothies, Mr. Tea's House of Boba, Gourmet Sandwich Co and
Salad Vibes.
Muscle Maker reported a net loss of $8.18 million for the year
ended Dec. 31, 2021, a net loss of $10.10 million for the year
ended Dec. 31, 2020, and a net loss of $28.39 million for the year
ended Dec. 31, 2019. As of Sept. 30, 2022, the Company had $25.38
million in total assets, $6.45 million in total liabilities, and
$18.93 million in total stockholders' equity.
MYLIFE.COM INC: Argo Partners Buying ERTCs for $250K, Free of Liens
-------------------------------------------------------------------
Mylife.com, Inc., asks the U.S. Bankruptcy Court for the Central
District of California to:
a. approve the Letter of Intent (LOI) with the Argo Partners
II, LLC; and
b. authorize the sale, free and clear of liens, of the
Estate's interest in all of the rights, interests and proceeds to
the Debtor's employee retention tax credits provided under section
2301 of the CARES Act to Argo for $250,000.
The Debtor's bankruptcy was precipitated by multiple lawsuits,
including a case referred to as he Rancourt Action as well as
litigation with the FTC, which required excessive payments to the
FTC that were not sustainable. These and other pre-petition
lawsuits have been stayed as to the Debtor pursuant to 11 USC
section 362.
As indicated on its Schedule "B," the Debtor's assets include the
Assets in the amount of $299,858.83, which it expects to receive
sometime in 2023. Pursuant to the Motion, the Debtor is seeking to
sell the Assets to Argo for $250,000.
The terms of the sale per the LOI are generally as follows:
a. Argo will purchase the Assets, consisting of the Debtor's
ERTCs due to the Debtor in the amount of $299,858.83;
b. The Purchase Price for the proposed sale is $250,000;
c. Expenses of each party to be borne by each respective
party, except that if the Court requires over-bidding and ARGO is
not the ultimate purchaser, then ARGO will be entitled to a Break
Up Fee representing its transaction costs in this matter, to be
capped at $10,000;
d. The sale will be free and clear of all liens and claims to
the extent any exist; and
e. Upon Court approval of these terms, the Debtor and the
Buyer are to execute any and all documents necessary to effectuate
the sale and assignment of the Debtor's entire interest in the
Assets to the Buyer.
The Debtor respectfully submits that the Assets have already been
submitted to a competitive bidding process, and establishing a
further bidding procedure is not necessary for the sale of the
Assets. It believes that the price, in its business judgment, is
fair and reasonable under the circumstances, and in the best
interests of its estate and creditors.
The Debtor also requests that the stay provided by Rule 6004(h) of
the Federal Rules of Bankruptcy Procedures be waived and no 14-day
stay be in effect after entry of the order granting the Motion.
A hearing on the Motion is set for Dec. 7, 2022, at 10:00 a.m.
Objections, if any, must be filed no later than 14 days before the
hearing date.
A copy of the LOI is available at https://tinyurl.com/2karum8a,
from PacerMonitor.com free of charge.
About Mylife.com Inc.
Mylife.com Inc. is an American information brokerage firm founded
by Jeffrey Tinsley in 2002 as Reunion.com.
On Sept. 2, 2022, Mylife.com Inc., doing business as Reunion.com
Inc., filed for Chapter 11 protection (C.D. Calif. Case No.
22-14858), with between $500,000 and $1 million in assets and
between $10 million and $50 million in liabilities. Jeffrey
Tinsley, chief executive officer of Mylife.com, signed the
petition.
Judge Ernest M. Robles oversees the case.
The Debtor is represented by Leslie Cohen Law PC.
NATIVE ENGINEERS: Gets Interim OK to Use Cash Collateral
--------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Louisiana
authorized Native Engineers, LLC to use cash collateral on an
interim basis in accordance with the budget, with a 10% variance.
b1Bank asserts liens on the Debtor's cash collateral for certain
disbursements.
As adequate protection, b1Bank is granted replacement security
interests in and liens on all post-petition accounts and general
intangibles of the Debtor on which b1Bank holds valid and perfected
liens as of October 28, 2022 and all proceeds of the foregoing in
the same respective priority it held prior to the Petition Date,
and subject and subordinate only to valid, perfected, enforceable
and non-avoidable liens and security interests granted by law or by
the Debtor to any person or entity that were superior in priority
to the prepetition security interests and liens held by b1Bank.
The Debtor will continue to make minimum monthly payments to b1Bank
on its four loans and lines of credit in accordance with terms and
conditions of any pre-petition loan documents and the Budget.
A copy of the order and the Debtor's budget is available at
https://bit.ly/3XQsSNw from PacerMonitor.com.
The budget provides for total expenses, on a weekly basis, as
follows:
$37,561 for December 3, 2022;
$9,048 for December 10, 2022;
$9,048 for December 10, 2022; and
$9,048 for December 10, 2022.
About Native Engineers
Native Engineers, LLC -- https://nativeengineers.com/-- provides
engineering, construction management, and program management
services. The company is based in Mandeville, La.
Native Engineers filed a petition for relief under Subchapter V of
Chapter 11 of the Bankruptcy Code (Bankr. E.D. La. Case No.
22-11316) on Oct. 28, 2022, with $1 million to $10 million in both
assets and liabilities. Greta M. Brouphy has been appointed as
Subchapter V trustee.
Judge Meredith S. Grabill oversees the case.
The Debtor is represented by Ryan James Richmond, Esq., at
Sternberg, Naccari & White, LLC.
NOVABAY PHARMACEUTICALS: Effects 1-for-35 Reverse Stock Split
-------------------------------------------------------------
NovaBay Pharmaceuticals, Inc. filed a certificate of amendment
providing for an amendment to the Company's Amended and Restated
Certificate of Incorporation, as amended, to effect a reverse stock
split at a ratio of 1-for-35. As provided in the Certificate of
Amendment, the Certificate of Amendment and the Reverse Stock Split
became effective on Nov. 15, 2022.
As previously disclosed in a Current Report on Form 8-K filed by
the Company on Nov. 14, 2022, the Reverse Stock Split ratio and
filing of the Certificate of Amendment was approved by the
Company's Board of Directors on Nov. 14, 2022 after having received
the requisite stockholder approval at the Company's special meeting
of stockholders on Nov. 10, 2022.
About Novabay
Headquartered in Emeryville, California, NovaBay Pharmaceuticals,
Inc. -- http://www.novabay.com-- develops and sells scientifically
created and clinically proven eyecare and skincare products.
NovaBay's leading product, Avenova Antimicrobial Lid & Lash
Solution, is often prescribed by eyecare professionals for
blepharitis and dry-eye disease and is also available directly to
eyecare consumers through online distribution channels such as
Amazon. DERMAdoctor offers more than 30 OTC
dermatologist-developed skincare products through the DERMAdoctor
website, well-known traditional and digital beauty retailers, and
international distributors. NovaBay also manufactures and sells
effective, yet gentle and non-irritating wound care products.
Novabay reported a net loss and comprehensive loss of $5.82 million
for the year ended Dec. 31, 2021, a net loss and comprehensive loss
of $11.04 million for the year ended Dec. 31, 2020, a net loss and
comprehensive loss of $9.66 million for the year ended Dec. 31,
2019, and a net loss and comprehensive loss of $6.54 million for
the year ended Dec. 31, 2018. As of Sept. 30, 2022, the Company
had $22.37 million in total assets, $8.59 million in total
liabilities, and $13.78 million in total stockholders' equity.
NOVABAY PHARMACEUTICALS: Grosses $3.25M From Private Placement
--------------------------------------------------------------
NovaBay Pharmaceuticals, Inc. has closed a private placement
transaction, raising an aggregate gross proceeds of approximately
$3.25 million, before deducting placement agent fees and other
offering expenses.
On Sept. 9, 2022, the Company entered into a securities purchase
agreement with certain institutional accredited investors relating
to a private placement transaction to sell Company units consisting
of of (i) a newly designated Series C Non-Voting Convertible
Preferred Stock, par value $0.01 per share, (ii) a new short-term
Series A-1 warrant to purchase common stock, and (iii) a new
long-term Series A-2 warrant to purchase common stock.
In connection with the closing of the Private Placement, the
Company entered into a registration rights agreement with the
Purchasers to register the Common Stock underlying the Series C
Preferred Stock and the Common Stock underlying the Warrants.
Pursuant to the terms of the Registration Rights Agreement, the
Company is required to file an initial registration statement with
the Commission covering the resale of the Series C Preferred
Conversion Shares and the Underlying Shares no later than Dec. 12,
2022 and to use best efforts to have the registration statement
declared effective no later than Jan. 9, 2023 or, in the event of a
"full review" of the registration statement by the Securities and
Exchange Commission, Feb. 8, 2023.
About Novabay
Headquartered in Emeryville, California, NovaBay Pharmaceuticals,
Inc. -- http://www.novabay.com-- develops and sells scientifically
created and clinically proven eyecare and skincare products.
NovaBay's leading product, Avenova Antimicrobial Lid & Lash
Solution, is often prescribed by eyecare professionals for
blepharitis and dry-eye disease and is also available directly to
eyecare consumers through online distribution channels such as
Amazon. DERMAdoctor offers more than 30 OTC
dermatologist-developed skincare products through the DERMAdoctor
website, well-known traditional and digital beauty retailers, and
international distributors. NovaBay also manufactures and sells
effective, yet gentle and non-irritating wound care products.
Novabay reported a net loss and comprehensive loss of $5.82 million
for the year ended Dec. 31, 2021, a net loss and comprehensive loss
of $11.04 million for the year ended Dec. 31, 2020, a net loss and
comprehensive loss of $9.66 million for the year ended Dec. 31,
2019, and a net loss and comprehensive loss of $6.54 million for
the year ended Dec. 31, 2018. As of Sept. 30, 2022, the Company
had $22.37 million in total assets, $8.59 million in total
liabilities, and $13.78 million in total stockholders' equity.
ONE CALL: S&P Alters Outlook to Negative, Affirms 'B-' ICR
----------------------------------------------------------
S&P Global Ratings revised its outlook on U.S.-based workers'
compensation medical cost-containment provider One Call Corp. to
negative from stable. At the same time, S&P affirmed the long-term
issuer credit rating on One Call Corp. at 'B-'. S&P has also
affirmed the 'B-' issue rating on the company's first-lien term
loan and revolver (the second-lien notes are unrated). The recovery
rating on the loan and revolver remains '3', indicating its
expectation for meaningful recovery (50%-70%; rounded estimate:
60%) in the event of a payment default.
One Call has faced notable revenue and earnings headwinds through
year to date 2022. S&P had expected One Call to experience modest
deterioration in earnings and credit metrics related primarily to
the partial insourcing of a key client. Notwithstanding, the
deterioration has been greater than anticipated on a combination of
factors, resulting in elevated credit protection measures for the
current rating level.
One Call's revenues for the last 12 months ended Sept. 30, 2022,
declined 7.4%, as partial insourcing by a key client, the exit of
the company's unprofitable nonemergency medical transportation
(NEMT) business, and a modest overall decline in the base business
driven by lower workers' compensation referral volumes offset some
new business wins and price increases. S&P Global Ratings-adjusted
EBITDA margins fell to 10% for the last 12 months ended Sept. 30,
2022, from 11.7% for the prior-year period, on the revenue
declines, inflationary wage and general cost pressures, and an
elevated level of one-time costs related to the company's various
operational efficiency initiatives.
As a result of the greater-than-anticipated revenue and earnings
declines, credit protection measures have similarly deteriorated
beyond expectations. Specifically, S&P Global Ratings-adjusted
leverage excluding preferred was 10.9x as of Sept. 30, 2022 (15.6x
with preferred), from 8.7x at year-end 2021 (12.5x with preferred).
EBITDA coverage excluding preferred equity and second-lien
payment-in-kind (PIK) interest (both of which are non-cash) was
1.9x as of the last 12 months ended Sept. 30, 2022, from over 2x at
year-end 2021, while coverage including the second-lien PIK
interest (but also excluding preferred equity servicing) was 1.1x.
S&P said, "Notwithstanding the earnings and credit metric
deterioration, we continue to view liquidity as adequate. Following
its capital restructure in 2021, the company has no upcoming
maturities (the earliest is its accounts receivable facility
maturing in 2024) and no covenant issues (springing covenants only
with no amount drawn). Liquidity sources to uses remains healthy,
with key sources being $26 million of balance sheet cash on hand as
of Sept. 30, 2022; full availability on its $59.5 million
first-lien revolver and $75 million accounts receivable
securitization; and run rate cash funds from operations (after debt
servicing) of $40 million to $60 million. Key liquidity uses
consist only of $7 million required debt amortization on the
first-lien term loan and $25 million to $35 million annually in
capital expenditures. Also aiding liquidity and debt servicing, the
company's second-lien PIK toggle requires PIK debt servicing only
based on current leverage levels (cash pay prohibited when
first-lien leverage is above 3.15x; this ratio was 4.5x at Sept.
30, 2022).
"Heading into 2023, One Call continues to face notable headwinds.
Given the weakened economy and expected uptick in unemployment, the
company will likely continue to experience base business erosion
from lower workers' compensation referrals and claims.
Additionally, we expect continued personnel and non-personnel cost
pressures from elevated inflation. And finally, rising interest
rates will burden debt servicing and stress coverage metrics, and
the company has no interest rate hedges in place.
"Notwithstanding these headwinds, the company also has various
positive factors that we believe will likely result in modest
improvements in earnings and credit protection measures over the
year. Most notably, the company will benefit from a few new
business wins it secured in the latter end of 2022 that should add
meaningful incremental earnings in 2023. One of these wins was a
win-back of a client lost in 2018, and a couple of the wins are
marquee names, demonstrating traction on the company's efforts to
improve service levels and overall competitive positioning in its
marketplace. Also, the company should benefit meaningfully from
pricing increases it has been working through its existing client
base to combat inflation cost pressures. Finally, we expect the
company to more meaningfully benefit from its various operational
transformation initiatives put in place over the last year under
its new leadership team, as well as modestly lower nonrecurring add
backs (most of which we don't give credit for in our adjusted
calculations).
"The negative outlook reflects the meaningful deterioration in
credit protection measures in 2022, and uncertainty and execution
risk regarding the trajectory of improvement over the next year.
Factoring in positives related to new client wins, pricing
increases, and efficiency gains and negatives relating to
macroeconomic factors including a rise in unemployment, cost
inflation, and higher interest rates, our base-case expectation is
for the company to return to modest growth in 2023, with revenue
increasing in the low-single digits (from our expectation of
high-single-digit revenue declines for 2022), and margin
improvement to 11% or slightly above (from around 10% expected for
full-year 2022).
"From a credit metrics perspective, we expect that S&P Global
Ratings-adjusted leverage excluding preferred will remain elevated
but begin to modestly improve to around 10x, driven by earnings
growth and partially mitigated by the increase in second-lien debt
from PIK accrual. Coverage should stay relatively steady relative
to 2022 at around 1.5x excluding the second-lien PIK interest and
around 1x including the PIK interest (both excluding the preferred
equity interest), as earnings gains are offset by a full year of
higher variable rates.
"We could lower the rating at any point over the next 12 months if
we believe the company's earnings and credit metrics are likely not
trending at least toward our base-case expectations (including
leverage excluding preferred of around 10x, EBITDA coverage
excluding preferred and second-lien PIK of around 1.5x and
including second-lien PIK around 1x), resulting in the capital
structure becoming increasingly unsustainable.
"Given the elevated credit protection measures and earnings misses,
we do not anticipate a ratings upgrade over the next 12-24 months.
We would consider a revision to back to stable over the next 12
months if the company if able to improve it's capital structure
such that leverage is sustained comfortably below 10x, with
coverage excluding the PIK debt above 1x (mid 1x including the PIK
debt)."
ONE IMPORTERS: Wins Cash Collateral Access Thru Feb 2023
--------------------------------------------------------
The U.S. Bankruptcy Court for the District of Massachusetts
authorized One Importers and Distributors, LLC to use cash
collateral on an interim basis in accordance with the budget
through the date of the continued hearing set for February 23, 2023
at 10 a.m.
As adequate protection, the creditors holding a secured interest in
the Debtors' assets are granted replacement liens to the same
extent, priority, and perfection, and only to the extent
unavoidable, that such secured creditors would have had in the
absence of the bankruptcy filing.
As previously reported by the Troubled Company Reporter, the U.S.
Small Business Administration asserts an interest in the Debtor's
cash collateral.
On February 10, 2023, the Debtor will file as attachments to a
notice of supplemental documents to the Cash Collateral Motion (i)
an updated 13-week budget, and (ii) a revised form of order, as a
well as a redline comparison of the proposed form of order to the
Order. The Debtor will file a budget-to-actual report by the 14th
day of each month in which this Order remains in effect comparing
the Debtor's use of cash collateral in the preceding month to the
prior projections and explaining any material deviations
therefrom.
A copy of the order and the Debtor's budget is available at
https://bit.ly/3iqxZUb from PacerMonitor.com.
The budget provides for total expenses, on a monthly basis, as
follows:
$36,020 for December 2022;
$38,320 for January 2023; and
$43,370 for February 2023.
About One Importers and Distributors, LLC
One Importers and Distributors, LLC operates a wholesale commercial
bakery at 100 Weymouth Street, Unit # G2, Rockland, Massachusetts.
It owns the commercial condominium unit in which it operates.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Mass. Case No. 22-11592) on November 11,
2022. In the petition signed by Maria Betania Damota, manager, the
Debtor disclosed up to $1 million in both assets and liabilities.
Judge Christopher J. Panos oversees the case.
Marques C. Lipton, Esq., at Lipton Law Group, LLC, is the Debtor's
counsel.
OUTFRONT MEDIA: Egan-Jones Retains CCC FC Sr. Unsec. Debt Ratings
-----------------------------------------------------------------
Egan-Jones Ratings Company, on November 21, 2022, retained its
'CCC' foreign currency senior unsecured ratings on debt issued by
Outfront Media Inc. EJR also retained its 'C' rating on commercial
paper issued by the Company.
Headquartered in New York, New York, OUTFRONT Media Inc. leases
advertising space on out-of-home advertising structures and sites.
PEPPERONI GRILL: U.S. Trustee Unable to Appoint Committee
---------------------------------------------------------
The U.S. Trustee for Region 4 on Nov. 29 disclosed in a court
filing that no official committee of unsecured creditors has been
appointed in the Chapter 11 case of Pepperoni Grill, LLC.
About Pepperoni Grill
Pepperoni Grill, LLC filed a voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. W. Va. Case No.
22-20161) on Oct. 14, 2022, with as much as $1 million in both
assets and liabilities. Jo A. Roderick, sole member, signed the
petition.
Judge B. McKay Mignault oversees the case.
The Debtor tapped Joseph W. Caldwell, Esq., as legal counsel and
Michelle Steele as bookkeeper.
PIPELINE HEALTH: Plan Confirmation Hearing Set for Dec. 19
----------------------------------------------------------
Judge Marvin Isgur of the U.S. Bankruptcy Court for the Southern
District of Texas is set to hold a hearing on Dec. 19 to consider
confirmation of the joint Chapter 11 plan of reorganization filed
by Pipeline Health System, LLC and its affiliates.
The bankruptcy judge set a Dec. 9 deadline for filing objections to
confirmation or requests for modifications to the plan, and for
filing votes on the plan. Meanwhile, the deadline to file the
voting report is on Dec. 16.
Judge Marvin on Nov. 16 approved the outline of the plan or the
so-called disclosure statement after determining that it contains
adequate information that would allow creditors to make an informed
decision on whether to accept or reject the plan.
The court ruling came after Pipeline and its creditors agreed to
resolve issues related to the adequacy of information contained in
the disclosure statement, and agreed to address the remaining
portions of the creditors' objections at the Dec. 19 confirmation
hearing. The creditors include Pulmonary Exchange, LTD, Hooper
Healthcare Consulting, LLC, and Medical Properties Trust, Inc.
The companies' reorganization plan is premised on the occurrence of
either the equitization restructuring or an asset sale
restructuring. There is no assurance that the asset sale
restructuring will occur.
The equitization restructuring under the plan entails restructuring
transactions that include,
among other things, the full or partial equitization of
"debtor-in-possession (DIP) claims" and the full equitization of
"term loan claims." The equitization restructuring is an
alternative to the asset sale restructuring.
Meanwhile, an asset sale restructuring entails restructuring
transactions that include, among
other things, the disposition of some or all of the companies'
assets through one or more asset sales, together with a waterfall
distribution of the net cash proceeds (if any) and wind-down of the
post-sale estates. An asset sale restructuring is an alternative to
the equitization restructuring.
If an asset sale restructuring or equitization restructuring
occurs, a plan administrator will be appointed.
Under the Plan, Class 6 general unsecured claims total $257
million. Each Class 6 general unsecured claim will be discharged
and released, and its holder will neither receive nor retain any
distribution, property or other value on account of such claim if
an equitization restructuring occurs on the effective date.
In the event an asset sale restructuring occurs, each holder of an
allowed general unsecured claim will receive the following
treatment: (i) if the amount of excess sale proceeds is greater
than zero, the holder will receive its pro rata share of the excess
sale proceeds; and (ii) otherwise, each general unsecured claim
will be discharged and released, and each holder of such claim will
not receive or retain any distribution, property or other value.
Creditors will recover 0% of their claims.
If an equitization restructuring occurs, the companies will fund
distributions under the plan with: (i) the issuance of the new
common equity; (ii) the issuance of or borrowings under the exit
facility and the takeback facility (if applicable); and (iii) cash
on hand, as applicable.
Meanwhile, if an asset sale restructuring occurs, the companies
will fund distributions with (i) cash on hand; and (ii cash or
non-cash consideration received by the companies in any asset sale
consummated pursuant to such restructuring, according to the
disclosure statement.
A copy of the disclosure statement dated Nov. 16, 2022, is
available at https://bit.ly/3OnjtIX from PacerMonitor.com.
About Pipeline Health System
Pipeline Health Systems, LLC is an independent, community-focused
healthcare network that offers a wide range of medical services to
the communities it serves, including maternity care, cancer
treatment, behavioral health, rehabilitation, general surgery, and
hospice care. Headquartered in El Segundo, California, Pipeline's
operations include seven safety net hospitals 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.
Pipeline Health Systems and its affiliates sought Chapter 11
protection (S.D. Texas Lead Case No. 22-90291) on Oct. 2, 2022. In
the petition signed by Andrei Soran, authorized signatory,
Pipeline
Health Systems disclosed $500 million to $1 billion in assets and
liabilities.
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 U.S. Trustee for Region 7 appointed an official committee of
unsecured creditors in the Debtors' bankruptcy cases. The committee
is represented by Akin Gump Strauss Hauer & Feld, LLP.
POST HOLDINGS: Egan-Jones Retains B FC Sr. Unsecured Debt Ratings
-----------------------------------------------------------------
Egan-Jones Ratings Company, on November 23, 2022, retained its B
foreign currency senior unsecured ratings on debt issued by Post
Holdings Inc.
Headquartered in St. Louis, Missouri, Post Holdings, Inc. operates
as a holding company.
PREMIER MODERN: Seeks Approval to Tap Financial Services Provider
-----------------------------------------------------------------
Premier Modern Commercial Printing Company, doing business as Bass
Printing Company, seeks approval from the U.S. Bankruptcy Court for
the Northern District of Texas to employ Kimberling McFarland and
Associates, PC.
The firm will render financial services, which include:
(a) monthly bookkeeping including examination, corrections,
and training of Debtor's staff, with appropriate journal entries;
(b) preparation of annual income tax returns;
(c) preparation of property tax renditions;
(d) preparation of 1099 forms;
(e) examination of payroll reports generated by third party
providers;
(f) assistance with monthly operating reports as long as
needed; and
(e) assistance with such other financial matters.
The firm will charge the Debtor $1,100 per month plus $1,100 per
each corporate tax return prepared annually.
Cynthia Kimberling, a director at Kimberling McFarland and
Associates, disclosed in a court filing that her firm is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
Cynthia Kimberling, CPA
Kimberling McFarland and Associates, PC
7200 Dutch Branch Road, Suite 100
Fort Worth, TX 76132
Telephone: (817) 263-1166
Facsimile: (817) 263-1750
Email: cyndy@kmacpa.com
About Premier Modern Commercial Printing Co.
Premier Modern Commercial Printing Company, doing business as Bass
Printing company, is a full service commercial and trade printer
located in Fort Worth, Texas. It offers a range of solutions to
help you create your advertising and promotional posters,
brochures, flyers, business card, and other printing solutions.
Premier Modern Commercial Printing Company sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No.
22-41296) on June 7, 2022, with between $100,000 and $500,000 in
assets and between $1 million and $10 million in liabilities.
Alrick V. Warner, president and chief executive officer, signed the
petition.
The case is assigned to Honorable Bankruptcy Judge Edward L.
Morris.
The Debtor tapped Michael S. Mitchell, Esq., at DeMarco Mitchell,
PLLC, as legal counsel and Kimberling McFarland and Associates, PC
as financial services provider.
PROPERTY HOLDERS: Seeks to Tap Rush Shortley as Bankruptcy Counsel
------------------------------------------------------------------
Property Holders, LTD seeks approval from the U.S. Bankruptcy Court
for the Northern District of Iowa to employ Rush Shortley, Esq., an
attorney practicing in Cedar Rapids, Iowa, to handle its Chapter 11
case.
Mr. Shortley will render these services:
(a) advise and provide services to the Debtor regarding its
rights, remedies and obligations under the U. S. Bankruptcy Code
and the Federal Bankruptcy Rules of Procedure;
(b) advise and provide services to the Debtor respecting
compliance with the procedures and other requirements of the United
States Trustee and the Trustee appointed to this case;
(c) represent the Debtor in any proceedings and hearings in
the U.S. Bankruptcy Court and in any other forum where Debtor's
rights and remedies under and with reference to the bankruptcy code
may be determined or affected;
(d) conduct examinations of witnesses, claimants, adverse
parties or other interested persons as needed and prepare and
assist in the preparation of reports, accounts and pleadings for
this Chapter 11 case;
(e) advise and assist the Debtor in the negotiation,
formulation, confirmation, and implementation of a Chapter 11 plan;
and
(f) perform such other services as the Debtor may require in
connection with this Chapter 11 case.
Prior to the petition date, the Debtor paid Mr. Shortley a retainer
in the amount of $10,000, plus $1,738 as filing fee.
Mr. Shortley disclosed in a court filing that he is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The attorney can be reached at:
Rush M. Shortley, Esq.
1921 51st Street NE
Cedar Rapids, IA 52402
Telephone: (319) 294-1907
Facsimile: (866) 388-4875
Email: rush@shortleylaw.com
About Property Holders
Property Holders, LTD filed a petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. N.D. Iowa Case No. 22-00744) on Nov.
21, 2022. In the petition filed by Charles A. Davisson, president,
the Debtor reported $2,771,431 in assets and $2,861,618 in
liabilities as of Sept. 30, 2022.
Rush M. Shortley, Esq., serves as the Debtor's legal counsel.
PURIFYING SYSTEMS: Has Deal on Cash Collateral Access
-----------------------------------------------------
Purifying Systems, Inc. and Wells Fargo Bank, National Association,
advised the U.S. Bankruptcy Court for the Central District of
California, Los Angeles Division, that they have reached an
agreement regarding the Debtor's use of cash collateral and now
desire to memorialize the terms of this agreement into an agreed
order.
On December 29, 2016, Wells Fargo made a loan in the principal
amount of $1.178 million to Purifying Systems, Inc.
The Loan is evidenced by, among other instruments, a Promissory
Note, Commercial Security Agreement, UCC-1 filing(s), Subordination
Agreement, Addendum to Subordination Agreement, Modification
Agreement, Deed of Trust and Mortgage.
As of Petition Date, Wells Fargo was owed $723,933, plus
post-petition interest, attorneys fees and costs.
The parties agree that the Debtor may use cash collateral for the
preservation and operation of its business.
The Debtor will pay directly to Wells Fargo, the monthly amount of
$5,401, commencing in December ,2022, and on the first day of each
month thereafter until March 2023, unless the Agreement is extended
in writing by Wells Fargo.
As additional adequate protection for Debtor's use of cash
collateral, Wells Fargo will have valid, duly perfected and
unavoidable security interests and liens in all of Debtor's
post-petition property equal to the amount of the cash collateral
used and to the same extent, priority, type and character as Wells
Fargo's security interest and liens on the Pre-Petition Collateral.
The Replacement Liens will be in addition to all existing claims,
security interests, liens and rights in favor of Wells Fargo.
The Debtor's right to use the cash collateral will automatically
cease and terminate on the earliest occurrence of any of the
following "Termination Events:"
a) On March___, 2023, unless the Agreement is extended in
writing by Wells Fargo;
b) The date on which the Order approving the Agreement is
reversed, revoked, stayed or rescinded;
c) The entry of any order granting Wells Fargo or any other
creditor relief from the automatic stay with regard to any of the
Pre-Petition Collateral or post-petition property that is subject
to any Replacement Liens, unless the parties have reached an
agreement to continue the Agreement as to all or part of the
Collateral;
d) The date on which the Debtor will grant or file an
application or motion with the Court for approval of any security
interest in or lien on the assets of the Debtor or Debtor's estate
senior to Wells Fargo's security interest or liens other than the
security interest and liens created in favor of Wells Fargo by the
order approving the Agreement;
e) The date on which Debtor files any objection to the
validity, amount, allocability, unavoidability, perfection or
priority of Wells Fargo's pre-pctition, security interest or liens
as set forth therein;
f) Entry of an order confirming any Chapter 11 plan in the
bankruptcy case;
g) Entry of an order converting the case, for any reason, to a
case under a different Chapter of the Bankruptcy Code;
h) Entry of an order appointing a trustee or examiner in the
within Chapter 11 case;
i) Entry of an order dismissing the Chapter 11 case; or
j) Service by Debtor of a motion or notice of motion to
convert the Chapter 11 case, for any reason, to a case under a
different Chapter of the Bankruptcy Code.
A hearing on the matter is set for December 6, 2022 at 10 a.m.
A copy of the motion is available at https://bit.ly/3VoivPe from
PacerMonitor.com.
About Purifying Systems, Inc.
Purifying Systems, Inc. provides equipment for any water treatment,
from water softeners and chemical pumps to reverse osmosis units.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 22-16301) on November
16, 2022. In the petition signed by Jaime I. Magana, secretary, the
Debtor disclosed up to $500,000 in assets.
Judge Barry Russell oversees the case.
Michael Jay Berger, Esq., at the Law Offices of Michael Jay Berger,
is the Debtor's legal counsel.
RALPH LAUREN: Egan-Jones Retains BB+ FC Sr. Unsecured Debt Ratings
------------------------------------------------------------------
Egan-Jones Ratings Company, on November 22, 2022, retained its BB+
foreign currency senior unsecured ratings on debt issued by Ralph
Lauren Corp.
Headquartered in New York, New York, Ralph Lauren Corporation
designs clothing and accessories.
RE-BUILD SEVILLE: Seeks to Hire Dal Lago Law as Co-Counsel
----------------------------------------------------------
Re-Build Seville, LLC seeks approval from the U.S. Bankruptcy Court
for the Southern District of Mississippi to employ Dal Lago Law as
co-counsel with McRaney & McRaney.
The firm's services include:
a. providing the Debtor with legal advice with respect to its
rights, duties, and powers in its Chapter 11 case, and compliance
with bankruptcy laws and all orders issued by the court in the
case;
b. preparing legal papers;
c. prosecuting and defending any causes of action on behalf of
the Debtor where special counsel is deemed unnecessary;
d. assisting in the formulation of a plan of reorganization or
liquidation;
e. assisting the Debtor in considering and requesting the
appointment of a trustee or examiner, should such action become
necessary;
f. representing the Debtor at hearings and other judicial
proceedings; and
g. performing other necessary legal services for the Debtor.
McRaney & McRaney will charge these hourly fees:
Michael R. Dal Lago $395 per hour
Associates/Paraprofessionals $180 to $325 per hour
The firm will be paid a retainer in the amount of $15,000.
As disclosed in court filings, Dal Lago Law and its attorneys are
"disinterested" as such term is defined in Bankruptcy Code Section
101(14).
The firm can be reached through:
Michael R. Dal Lago, Esq.
Christian Garrett Haman, Esq.
Dal Lago Law
999 Vanderbilt Beach Road, Suite 200
Naples, FL 34108
Telephone: (239) 571-6877
Email: mike@dallagolaw.com
chaman@dallagolaw.com
About Re-Build Seville
Re-Build Seville, LLC, a company in Jackson, Miss., sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
S.D. Miss. Case No. 22-01976) on Sept. 28, 2022. In the petition
filed by its manager, J. Stephen Tracy, the Debtor reported between
$1 million and $10 million in both assets and liabilities.
Judge Jamie A. Wilson oversees the case.
The Debtor is represented by the law firms of McRaney & McRaney and
Dal Lago Law.
REVERSE MORTGAGE: Case Summary & 30 Largest Unsecured Creditors
---------------------------------------------------------------
Five affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Reverse Mortgage Investment Trust Inc. (Lead) 22-11225
1455 Broad Street
2nd Floor
Bloomfield, NJ 07003
Reverse Mortgage Funding LLC. 22-11224
RMIT Cash Management LLC 22-11226
RMIT Operating I LLC 22-11227
RMIT Operating II LLC 22-11228
Business Description: Reverse Mortgage Investment Trust Inc.,
together with its debtor and non-debtor
affiliates, is an originator and servicer of
reverse mortgage loans.
Chapter 11 Petition Date: November 30, 2022
Court: United States Bankruptcy Court
District of Delaware
Judge: Hon. Mary F. Walrath
Debtors'
General
Bankruptcy
Counsel: Stephen Hessler, Esq.
Thomas Califano, Esq.
Anthony Grossi, Esq.
SIDLEY AUSTIN LLP
787 Seventh Avenue
New York, New York 10019
Tel: (212) 839-5300
Fax: (212) 839-5599
Email: shessler@sidley.com
tom.califano@sidley.com
agrossi@sidley.com
Debtors'
Local
Bankruptcy
Counsel: Michael J. Barrie, Esq.
Jennifer R. Hoover, Esq.
Kevin M. Capuzzi, Esq.
John C. Gentile, Esq.
BENESCH, FRIEDLANDER, COPLAN
& ARONOFF LLP
1313 North Market Street, Suite 1201
Wilmington, DE 19801
Tel: (302) 442-7010
Fax: (302) 442-7012
Email: mbarrie@beneschlaw.com
jhoover@beneschlaw.com
kcapuzzi@beneschlaw.com
jgentile@beneschlaw.com
Debtors'
Financial
Advisor: FTI CONSULTING, INC.
Debtors'
Noticing &
Claims
Agent: KROLL RESTRUCTURING ADMINISTRATION LLC
Estimated Assets: $10 billion to $50 billion
Estimated Liabilities: $10 billion to $50 billion
The petitions were signed by Craig Corn as chief executive
officer.
Full-text copies of the petitions are available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/3VCS6XI/Reverse_Mortgage_Investment_Trust__debke-22-11225__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/GED35NA/Reverse_Mortgage_Funding_LLC__debke-22-11224__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/4YN7JJI/RMIT_Cash_Management_LLC__debke-22-11226__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/LPIVD5I/RMIT_Operating_I_LLC__debke-22-11227__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/LQWUGBA/RMIT_Operating_II_LLC__debke-22-11228__0001.0.pdf?mcid=tGE4TAMA
List of Debtors' 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
1. Compulink dba Celink Trade Unliquidated
Attn: Ryan LaRose
P.O. Box 40724
Lansing, MI 48901
3900 Capital City Blvd
Lansing, MI 48906
Tel: 866‐654‐0020 x1211
Email: Ryan@celink.com
2. Lowenstein Sandler, LLP Trade $1,025,353
Attn: President or General Counsel
65 Livingston Avenue
Roseland, NJ 7068
Tel: 973‐597‐2500
3. Microsoft Corporation Trade $676,215
Attn: President or General Counsel
P.O. Box 847543
Dallas, TX 75284‐7543
One Microsoft Way
Redmond, WA 98052
Tel: 425-882-8080
4. DB Trust Co. Americas Trade $466,465
Attn: President or General Counsel
P.O. Box 1757 ‐
Church Street Station
New York, NY 10008
60 Wall Street
New York, NY 10005
Tel: 904-271-2541
5. Adfitech, Inc. Trade $424,295
Attn: Steve Russell, CISM‐ Information
Security Manager
3001 Technology Drive
Edmond, OK 73013‐3734
Tel: 405‐715‐8385
Email: steve.russell@adfitech.com
6. Texas Capital Bank Trade $358,576
Attn: President or General Counsel
2221 Lakeside Blvd, Ste 800
Richardson, TX 75082
Tel: 214‐932‐6600
7. Lendingtree Trade $354,672
Attn: Chad Anger
P.O. Box 840470
Dallas, TX 75284‐0470
11115 Rushmore Dr.
Charlotte, NC 28277
Tel: 704‐943‐8471; 800‐616‐0578
Email: chad.anger@lendingtree.com
8. Hunton Andrews Kurth LLP Trade $331,679
Attn: President or General Counsel
P.O. Box 405759
Atlanta, GA 30384‐5759
Riverfront Plaza, East Tower
951 East Byrd Street
Richmond, VA 23219
Tel: 804‐788‐8200
Fax: 804‐788‐8218
9. Latham & Watkins LLP Trade $241,591
Attn: President or General Counsel
P.O. Box 2130
Carol Stream, IL 60132
1271 Avenue of the Americas
New York, NY 10020
Tel: 212-906-1200
10. Saksoft Inc Trade $168,911
Attn: President or General Counsel
30 Montgomery Street Suite 1240
Jersey City, NJ 7302
Tel: 201‐451‐4609; 201‐451‐4612
Fax: 212‐504 8026
11. CDW Direct Trade $152,394
Attn: President or General Counsel
P.O. Box 75723
Chicago, IL 60675‐5723
200 N. Milwaukee Ave
Vernon Hills, IL 6001
Tel: 866-782-4239
Email: credit@cdw.com
12. Mortgage Information Trade $135,915
Services, Inc.
Attn: President or General Counsel
4877 Galaxy Parkway
Cleveland, OH 44128
Tel: 216‐514‐7480
Fax: 888‐901‐4648
13. Damianos Pinelawn,LLC Trade $135,317
Attn: President or General Counsel
222 Middle Country Road, Suite 300
Smithtown, NY 11787
Tel: 631-360-9000
14. Reverse Vision, Inc. Trade $133,719
Attn: President or General Counsel
1620 Fifth Avenue, Suite 525
San Diego, CA 75267
Tel: 858-433-4950
15. Bay Docs, LLC Trade $108,875
Attn: Megen Lawler
890 Lamont Ave Suite 101
Novato, CA 94945
Tel: 888-297-3627
Email: mlawler@baydocs.net
16. Weiner Brodsky Kider PC Trade $108,670
Attn: President or General Counsel
1300 19th Street NW 5th Floor
Washington, DC 20036‐1609
Tel: 202-628-2000
17. Berkeley Research Group Trade $108,188
Attn: President or General Counsel
2200 Powell Street
Suite 1200
Emeryville, CA 94608
Tel: 510‐285‐3300
Fax: 510‐654‐7857
18. Mayer & Brown LLP Trade $100,000
Attn: President or General Counsel
230 South LaSalle Street
Chicago, IL 60604‐1404
Tel: 312-782-0600
19. Bladock S.A. Trade $91,380
Attn: Oscar Lopez
Alarcon 1457
Montevideo 11600
Uruguay
Tel: 598-9817-2089
Email: oscar@bladock.com
20. Oracle America, Inc. Trade $85,671
Attn: President or General Counsel
2300 Oracle Way
Austin, TX 78741
Tel: 737-867-1000
21. Bloomberg, L.P. Trade $58,153
Attn: President or General Counsel
PO Box 416604
Boston, MA 02241‐6604
Tel: 212-318-2000
22. Franzen and Salzano, P.C. Trade $55,853
Attn: President or General Counsel
3500 Parkway Lane
Suite 305
Peachtree Comers, GA 30092
Tel: 770‐248‐2885
Fax: 770‐248‐2883
23. Valuemomentum Inc Trade $49,650
Attn: President or General Counsel
220 Old New Brunswick Rd
Piscataway, NJ 08854
Tel: 908-941-1140
24. Credit Plus, Inc. (142619) Trade $49,547
Attn: Don Kuttler
15365 Collections Center Drive
Chicago, IL 60693
Tel: 800‐258‐3488
Fax: 908‐248‐0772
Email: Don.kuttler@creditplus.com
25. Microsoft Online, Inc. Trade $49,435
Attn: President or General Counsel
P.O. Box 847543
Dallas, TX 75284‐7543
One Microsoft Way
Redmond, WA 98052
Tel: 800-642-7676
26. Class Valuation, LLC Trade $43,000
Attn: President or General Counsel
2600 Bellingham Dr.
Suite 100
Troy, MI 48083
Tel: 248‐955‐9580
Fax: 888‐914‐4555
Email: info@classvaluation.com
27. Comergence Compliance Trade $38,546
Monitoring, LLC
Attn: Lisa Pizula
Dept 3232 PO Box 12 3232
Dallas, TX 75312‐3232
5340 Legacy Drive
Plano, TX 75024
Tel: 720‐709‐4353
Email: lpizula@optimalblue.com
28. Littler Mendelson P.C. Trade $34,480
Attn: President or General Counsel
PO Box 207137
Dallas, TX 75320‐7137
900 Third Ave
New York, NY 1022
Tel: 212‐583‐9600
Fax: 212‐832‐2719
29. Margaret Shakespeare and Litigation Unliquidated
Similarly Situated
c/o Joseph S. Tusa
P.O. Box 566
150 Motor Parkway, Ste. 401
Hauppauge, NY 11788
c/o Giskan Solotaroff & Anderson LLP
Attn: Oren Giskan, Catherine E. Anderson
90 Broad Street, 10th Floor
New York, NY 10004
Tel: 631‐407‐5100; 212‐847‐8315
Email: joseph.tusapc@gmail.com;
ogiskan@gslawny.com;
canderson@gslawny.com
30. Sheila Dancy Wilkins Litigation Unliquidated
as POA for Flora
Mayweathers
c/o Joseph S. Tusa
P.O. Box 566
55000 Main Road, 2nd Floor
Southold, NY 11971
c/o Giskan Solotaroff & Anderson LLP
Attn: Oren Giskan, Catherine E. Anderson
90 Broad Street, 10th Floor
New York, NY 10004
PHONE: 631‐407‐5100; 212‐847‐8315
EMAIL: joseph.tusapc@gmail.com;
ogiskan@gslawny.com;
canderson@gslawny.com
ROLAND MAYEUX: RVG Property Buying Mandeville Empty Lot for $300K
-----------------------------------------------------------------
Roland Mayeux Jr. asks the U.S. Bankruptcy Court for the Eastern
District of Louisiana to authorize the sale of an empty lot bearing
the municipal address of 140 Sanctuary Boulevard, in Mandeville,
Louisiana, to RVG Property LLC and/or its principle, Ruel Gober,
for an all cash sales price of $300,000.
At the time of the bankruptcy filing, the Debtor owned the
Property. Based upon his personal opinion, he valued the Property
on his Bankruptcy Schedules at $225,000.
On Oct. 14, 2022, the Court authorized the Debtor's employment of
Ken Rayer of Real Estate Resource Group LLC to act as his
professional for the purpose of selling the Property. The Property
was originally listed for sale on Oct. 11, 2022, for $295,000.
The Debtor has, subject to the Court's approval, entered into a
Louisiana Residential Agreement to Buy or Sell that would sell the
Property to RVG Property LLC and/or its principle, Ruel Gober, for
an all cash sales price of $300,000. Under the terms of the Sales
Agreement, the sale is to occur on Nov. 30, 2022. It is his intent
to sell the Property free and clear of all liens.
The Debtor has no mortgage on the Property. However, there are
various judgments liens recorded against the Debtor and the
Property, which appear in the public records in the following
amounts and in the following order:
a. Chad Miller for $3,650.00 plus court costs entered on
Sept. 25, 2018 and recorded on Nov. 15, 2018 at Instrument No.
2136270; Registry 2601148;
b. National Funding Inc. for $196,373.01 plus interest,
costs and attorneys' fees entered on Aug. 24, 2018 and recorded on
March 25, 2019 at Instrument No. 2150705; Registry 2621271;
c. Iberia Bank for $100,000 with unpaid interest of
$3,829.16 and interest thereafter at 21%, late charges of $25 and
attorneys' fees of 25% of principal amount due and all costs of
proceeding, entered on July 30, 2020 and recorded on Sept. 2, 2020
at Instrument No. 2224817; Registry # 2716317; Thereafter assigned
to Amos Financial on April 13, 2021 at Instrument No. 2268778,
Registry No. 2769015; and
d. Baker Distributing Company LLC for $6,797.27 with 18%
interest until paid, all costs of the proceedings and 25% of
attorney’s fees entered on Oct. 26, 2021 and recorded on Jan. 7,
2022 at Instrument No. 2309129, Registry No. 2817620.
Proofs of Claim have been filed in the case by the following
lienholders evidencing the current amount due on the judgment
liens:
a. National Funding for $274,276.57 (Proof of Claim No. 14
(withdrawn) and No. 15); and
b. Amos Financial for $100,000 (Proof of Claim No. 1).
No proofs of claim have been filed by Chad Miller or Banker
Distribution.
Assuming gross sale proceeds of $300,000 less real estate
commission of $14,000 and estimated costs of sale of $2,000, the
sale is anticipated to net sale proceeds of $284,000.
The Debtor avers that the following lienholders be paid in the
following order and in the following amount from the Sale Proceeds
of $284,000:
a. Chad Miller, the highest lien holder, will be paid $3,650
plus court costs estimated to be $296 for a grand total of
$3,946.00 in full satisfaction of his judgment lien, leaving excess
Sale Proceeds of $280,054; and then
b. National Funding, the second ranked lien holder, has a
judgment for $196,373.01 and has filed a proof of claim herein
evidencing that the current payoff on the judgment is $274,276.57.
National Funding would be paid $274,276.57 in full satisfaction of
its judgment lien leaving excess sale proceeds of $5,777.43; and
then
c. Amos Financial, the third ranked lien holder, would
receive the remaining sale proceeds of approximately $5,777.43 in
full satisfaction of its recorded judgment; and then
d. Baker Distribution, the fourth ranked lien holder, will
receive no distribution but its lien will be avoided.
As time is of the essence to the proposed sale, the Debtor requests
that the Court waives the 14-day stay of any final order granting
this motion and order that the final relief requested in his motion
may be immediately available upon the entry of an order approving
the proposed sale.
A copy of the Agreement is available at
https://tinyurl.com/9b8y85es from PacerMonitor.com free of charge.
Counsel for Debtor:
Robin R. De Leo, Esq.
800 Ramon Street
Mandeville, LA 70448
Telephone: (985) 727-1664
E-mail: elaine@northshoreattorney.com
The bankruptcy case is In re: Roland Mayeux Jr., Case No. 22-10915
(Bankr. E.D. La.). Greta Brouphy was appointed to serve as the
subchapter V trustee.
ROMULUS INTERMEDIATE: S&P Downgrades ICR to 'B-', Outlook Stable
----------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Romulus
Intermediate Holdings 2 Inc. (doing business as PetVet) to 'B-'
from 'B', its issue-level rating on its senior secured credit
facility to 'B-' from 'B' and the second-lien debt to 'CCC' from
'CCC+'. The recovery ratings are unchanged at '3' and '6',
respectively.
S&P said, "The stable outlook reflects our expectation that revenue
will grow in the low-single-digit percent area organically for the
next 12 months, mostly as a result of pricing increases. While we
expect leverage will stay elevated at around 9x-10x in 2023,
industry fundamentals remain healthy and we expect EBITDA margins
could stabilize at about 25% as cost pressures subside.
"The downgrade reflects our expectation that PetVet will sustain
S&P Global Ratings-adjusted leverage of more than 9x and
free-operating cash flow (FOCF) to debt of less than 3.5% as its
revenue expansion slows and its expenses remain elevated. We expect
the company to generate a cash flow deficit in 2022, which is
significantly lower than our previous forecast of about $50 million
to $60 million, due to rising interest rates, wage inflation, and
transaction expenses. We believe free cash flow for 2023 will
rebound to $15 million to $20 million, but remain materially below
our prior forecast of $90 million to $100 million as customer
volume growth will be minimal to modestly negative as the pet
adoption rate continues to drop relative to its peak and customer
visits remain pressured due to recessionary pressure. As a result,
we forecast the company's pace of organic revenue growth will slow
to about low-single-digit for 2023 (mostly driven by price
increases), from the mid-single-digit area in 2022.
"Additionally, we expect the tight labor market will continue in
2023. The company has introduced various programs to increase
compensation and address doctor and staff retention, which we
expect will be a burden to margin and cash flow in 2023. While we
believe these actions have helped to reduce the spike in attrition
experienced during the peak of the pandemic, we believe rising
wages and turnover will continue to be a source of pressure as the
company looks to remain competitive, especially in the specialty
practice clinics, where doctor departures are more difficult to
replace.
"The company has remained acquisitive during the pandemic and made
over $900 million of debt-financed acquisitions in 2021, the
highest in the company's history. This not only increased
transaction expenses but will continue to keep leverage and
interest expenses at very high levels. We expect pro-forma leverage
will stay around 9x-10X in 2023 (depending on the pace of
acquisitions) compared to our prior forecast of around 8x. We also
expect PetVet's pro-forma cash flow to be less than $25 million for
2023 due to various inflationary pressure, less than 1% free cash
flow to debt.
"PetVet's aggressive acquisition strategy, coupled with high
acquisition multiples in the veterinarian market, are key credit
risks. We believe there's been a modest stabilization in market
acquisition multiples given the current credit market conditions,
although they remain very high at low-to-high teens, on average,
and could rise again once interest rates start to come down (we
expect to happen in the latter half of 2023). We see high
acquisition multiples as a key credit risk because the company will
likely need to issue more debt to fund its acquisitions, which will
make it more difficult to generate adequate synergies to justify
the higher purchase price. This will increase the level of
execution risk for its management team, especially as the cost of
new debt will remain high even as interest rates start to decline.
"Although we believe there is significant white space in the market
for acquisitions as 85% to 90% of the industry are still owned by
individual independent owners, the company will face intense
competition from its larger peers (such as NVA Holdings Inc. and
VCA Inc.[owned by Mars Inc.]), which have provided further fuel to
the elevated purchase multiples.
"We view the veterinary operating industry as attractive due to its
secular tailwinds.We expect the level of pet ownership will
continue to increase in the U.S. over the next few years and owners
are spending more on their pets. Veterinary services are primarily
cash pay, which means that veterinary operators face very little
health care reimbursement risk. While the discretionary nature of
the spending on veterinary services could leave companies more
exposed during economic downturns, the sector's history over the
last few cycles indicates greater stability relative to more
cyclical sectors.
"The stable outlook reflects our expectation that revenue will grow
at the low-single-digit percent area organically for the next 12
months, mostly as a result of pricing increases. While we expect
leverage will stay elevated at around 9x-10x in 2023, industry
fundamentals remain healthy and we expect EBITDA margins could
stabilize at about 25% as cost pressures subside. Although there is
some runway on the first lien term loan maturity, refinancing at
higher rates could impact future cash flow starting in 2024.
"We could lower our rating if free cash flow is insufficient to
cover fixed charges including debt amortization and higher interest
expenses, or if we believe the capital structure appears
unsustainable longer-term due to high leverage and minimal to
negative free operating cash flow.
"We could consider a higher rating if the company sustains pro
forma adjusted leverage below 9x and free cash flow to debt
comfortably above 3.5%. Any upgrade would also require relative
stability in transaction volumes, continued positive organic
revenue growth, and the company addressing debt maturities and
earnout payments over the next few years."
ESG credit indicators: E-2, S-2, G-3
S&P said, "Governance factors are a moderately negative
consideration in our credit rating analysis of PetVet. Our highly
leveraged assessment of the company's financial risk profile
reflects its corporate decision-making that prioritizes the
interests of its controlling owners, which is in line with our view
of the majority of rated entities owned by private-equity sponsors.
Our assessment also reflects private-equity owners' generally
finite holding periods and focus on maximizing shareholder
returns."
SAN JORGE CHILDREN'S: Commitee Taps RSM as Financial Advisor
------------------------------------------------------------
The official committee of unsecured creditors of San Jorge
Children's Hospital, Inc. seeks approval from the U.S. Bankruptcy
Court for the District of Puerto Rico to employ RSM Puerto Rico as
its financial advisor.
The firm's services include:
a. review and analysis of liquidity assessment prepared by the
Debtor;
b. review of the reconciliation of filed proofs of claim;
c. review of the monthly operating reports prepared by the
Debtor;
d. review and analysis of the Debtor's projections;
e. review of analysis of profitability of the Debtor's
operations;
f. review of plan of reorganization or disclosure statements;
g. review or preparation of business valuations;
h. consultation on strategic alternatives and business plans or
options;
i. expert testimony delivery;
j. accounting assistance during negotiations with the Debtor;
and
k. other consulting relating to various bankruptcy matters such
as review of insolvency, feasibility forensic accounting, fraud
examination, as necessary.
The firm will be paid at these rates:
Partners $200 to $300 per hour
Managers $145 to $185 per hour
Senior $75 to $90 per hour
Staffs $65 to $75 per hour
In addition, the firm will be reimbursed for out-of-pocket expenses
incurred.
The firm will be paid a retainer in the amount of $10,000.
Doris Barroso Vicens, a managing partner at RSM Puerto Rico,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Doris Barroso-Vicens
RSM Puerto Rico
P.O. Box 10528
San Juan, PR 00922-0528
Tel: (787) 751-6164
About San Jorge Children's Hospital
San Jorge Children's Hospital, Inc. operates a hospital
specializing in pediatrics in San Juan, P.R.
San Jorge Children's Hospital filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case
No. 22-02630) on Sept. 1, 2022, with between $10 million and $50
million in both assets and liabilities. Edward P. Smith, chief
operating officer, signed the petition.
Judge Maria De Los Angeles Gonzalez presides over the case.
The Debtor tapped Wigberto Lugo Mender, Esq., at Lugo Mender Group,
LLC as bankruptcy counsel and GalÃÂndez, LLC as external
auditor.
Cardona Jimenez Law Offices, P.S.C. represents the official
committee of unsecured creditors appointed in the Debtor's case
while RSM Puerto Rico serves as the committee's financial advisor.
SKY INN: Amends Plan to Resolve RSS Secured Claim Issues
--------------------------------------------------------
Sky Inn Operation, Inc., et al., submitted a Disclosure Statement
in support of Third Amended Joint Chapter 11 Plan of Reorganization
dated November 28, 2022.
The Plan contemplates payment in full to all classes of creditors.
The Plan will be funded from operations of the Debtors and cash on
hand. With respect to specific classes of creditors, the Plan
provides:
(1) all Allowed Administrative Claims shall be paid in full, in
Cash, on the Effective Date, or as otherwise agreed in writing
between the Debtors and any such administrative claimant agreeing
to a different treatment. Administrative Claims are currently
estimated at $70,000.00;
(2) full payment of all Allowed Priority Claims of
Governmental Entities, if any, in Cash, through regular Monthly
Plan Payments, or as otherwise agreed in writing, together with
interest at the rate required by Bankruptcy Code section 511 or, if
applicable, over a period through the fifth anniversary of the
Petition Date. There are not currently any estimated Priority
Claims of Governmental Entities;
(3) full payment, in Cash, of all Allowed Non-Governmental
Priority Claims, if any, on the Effective Date. Non-Governmental
Priority Claims are currently estimated at $4,104.28;
(4) full payment of all Allowed Secured Claims of Governmental
Entities, if any, in Cash, through regular Monthly Plan Payments,
or as otherwise agreed in writing, together with interest at the
rate required by Bankruptcy Code section 511 or, if applicable, the
rate authorized by Texas Tax Code § 33.01, over a period through
the fifth anniversary of the Petition Date. Secured Claims of
Governmental Entities are currently estimated at $320,901.59;
(5) full payment of the Allowed Secured Claim of RSS
COMM2015-DC1-TX SIO, LLC ("RSS") together with interest at the Plan
Interest Rate (provided and for so long as there is no Event of
Default, following the Effective Date; in the event of a
post-Effective Date Event of Default, the Default Rate shall
govern), assessed in accordance with the terms of the RSS Loan
Documents, from the Effective Date until paid in full, through one
payment of $1,000,000 on the Effective Date (to be applied, funds
permitting, by Lender first to past due principal and interest,
then advances then special servicing fees, then interest on
advances, then NSF fee/YM Calc Fee/Lien Release fee/Accommodation
fee, then liquidation/workout fee, then late fees), 16 consecutive
monthly installment payments commencing on or before the fifth day
of the first month following the Effective Date in the amount of
$69,888.67, with each such monthly payment due on or before the
fifth day of each month thereafter, with a final payment of all
remaining principal, interest, and Yield Maintenance Premium and
all other remaining amounts due under the terms of the RSS Loan
Documents on or before the fifth day of the eighteenth month
following the Effective Date. Subject to entry of an Agreed Order
on Debtor's Objection to Claim No. 5 filed by RSS COMM2015-DCI-TX
SIO, LLC, the Debtors and RSS have reached an agreement for the
Allowance of RSS's Claim in the amount of $9,938,789.34 as of
September 30, 2022. In addition to that amount, RSS's allowed claim
shall include: (i) interest at a per diem of $1,432.73 from October
1, 2022 through the effective date of any confirmed plan; and (ii)
reasonable attorneys' fees and costs from September 24, 2022
through the Effective Date of the Plan.
(6) On or before the Effective Date, Armando Bartarse Cardenas
shall deliver to RSS an absolute and unconditional full recourse
guaranty of the Debtors' obligations to RSS, as modified by this
Plan, in a form reasonably acceptable to RSS. Except as expressly
modified by the Plan, the RSS Loan Documents shall remain in full
force and effect; provided that, conditioned upon the occurrence of
and as of the Effective Date, there shall be no existing Event of
Default under the RSS Loan Documents, and there shall be no future
Event of Default triggered by any facts and circumstances prior to
the Petition Date relating to the Sky Inn Hotels & Suites, Inc.
personal property and/or relating to the lease thereof to Debtor
Austin Airport Suites, LLC. On and after the Effective Date,
Debtors shall only be entitled to notice of any default of its
obligations to the extent expressly provided for in the RSS Loan
Documents;
(7) full payment of the Other Allowed Secured Claims, if any,
together with interest at the Plan Interest Rate, through 17
consecutive monthly installment payments commencing on the
Effective Date calculated on a 120-month amortization, with a final
payment of all remaining principal and interest due on the first
business day of the eighteenth month following the Effective Date.
The Debtor is not aware of any Other Secured Claims at this time;
(8) full payment of the Allowed General Unsecured Claims
through 6 regular monthly installment payments commencing on the
Effective Date and continuing monthly thereafter. General Unsecured
Claims are estimated to be in the approximate amount of $300,000;
(9) All Pre-Petition Membership Interests in each of the
Debtors shall be preserved provided, however, that holders of such
interests shall receive no payments, dividends, or distributions,
on account of the Pre-Petition Membership Interests unless and
until claims in Class 6 are paid in full; and
(10) Each holder of an Allowed Secured Claim will retain its
Liens until such Allowed Secured Claims are paid in full.
A full-text copy of the Disclosure Statement dated November 28,
2022, is available at https://bit.ly/3VlNuLD from PacerMonitor.com
at no charge.
Attorneys for Sky Inn Operation, Inc. D/B/A Staybridge Suites
Austin Airport and Austin Airport Suites, LLC:
Kell C. Mercer, Esq.
KELL C. MERCER, P.C.
901 S Mopac Expy Bldg. 1 Ste 300
Austin, TX 78746
Tel: (512) 627-3512
Fax: (512) 597-0767
E-mail: kell.mercer@mercer-law-pc.com
- and -
C. Daniel Roberts, Esq.
C. DANIEL ROBERTS, P.C.
PO Box 6368
Austin, TX 78762
Tel: (512) 494-8448
E-mail: droberts@cdrlaw.net
About Sky Inn Operation and Austin Airport
Sky Inn Operation, Inc. owns real property locally known as the
Staybridge Hotel located at 1611 Airport Commerce Drive, Austin,
Texas. Austin Airport Suites, LLC, an affiliate, is renting the
hotel pursuant to a lease agreement dated June 23, 2008.
Sky Inn Operation and Austin Airport Suites sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. W.D. Texas Lead Case No.
22-10134) on Feb. 28, 2022.
In their petitions, Sky Inn Operation disclosed up to $50 million
in assets and up to $10 million in liabilities while Austin Airport
disclosed up to $500,000 in assets and up to $10 million in
liabilities. Armando Batarse Cardenas, president of Sky Inn Hotels
& Suites and sole shareholder, signed the petitions.
Judge Tony M. Davis oversees the cases.
C. Daniel Roberts, PC and Kell C. Mercer PC, serve as the Debtors'
legal counsels.
SOUTHERN PRODUCE: $400K Sale of Faison Property to Ying Approved
----------------------------------------------------------------
Judge David M. Warren of the U.S. Bankruptcy Court for the Eastern
District of North Carolina authorized Southern Produce
Distributors, Inc.'s private sale of the parcel of real property
located at 300 Spencer Road, in Faison, Sampson County, North
Carolina 28341, containing approximately 154.03 acres, further
identified by Parcel No. 13014124004, plus all improvements and all
rights appurtenant thereto, to Ying Properties, LLC, for $400,000.
The Sale is free and clear of liens or encumbrances, subject to (i)
ad valorem taxes, to be pro-rated to the date of the closing, with
seller's portion paid at the closing from the sales proceeds, (ii)
reasonable and normal costs of closing, including, without
limitation, reasonable costs or expenses of sale required to be
paid by the Debtor as the seller pursuant to the respective sale
contract, and (iii) a real estate broker commission of 5% to be
paid to David Kornegay of Kornegay Realty, Inc., at the closing
from the applicable sale proceeds.
The net sale proceeds received from the sale will be subject to the
following uses: (i) Quarterly Fees generated by the sale when and
as applicable, (ii) reasonable attorney for Debtor fees relating to
the sale and closing, and (iii) applicable capital gain taxes when
and if applicable.
About Southern Produce
Southern Produce Distributors, Inc. --
http://southern-produce.com/
-- is a provider of sweet potatoes and peppers to markets across
the US, Canada, UK and Europe. Southern Produce was founded in
1942 and is based in Faison, North Carolina.
Southern Produce Distributors filed for bankruptcy protection
(Bankr. E.D.N.C. Case No. 18-02010) on April 20, 2018. In the
petition signed by Randy W. Swartz, president and CEO, the Debtor
disclosed total assets of $27.12 million and total liabilities of
$19.96 million. Gregory B. Crampton, Esq., of Nichols & Crampton,
P.A., serves as counsel to the Debtor. Janvier Law Firm, PLLC,
serves as special counsel.
STAUNTON AREA: Seeks to Tap Carmody MacDonald as Bankruptcy Counsel
-------------------------------------------------------------------
Staunton Area Ambulance Service seeks approval from the U.S.
Bankruptcy Court for the Central District of Illinois to employ
Carmody MacDonald, PC as its bankruptcy counsel.
The firm will render these legal services:
(a) advise the Debtor with respect to its rights, power, and
duties in this Chapter 11 case;
(b) assist and advise the Debtor in its consultations with any
appointed committee related to the administration of this Chapter
11 case;
(c) assist the Debtor in analyzing the claims of creditors and
negotiating with such creditors;
(d) assist the Debtor with investigation of its assets,
liabilities, and financial condition and reorganize its business to
maximize the value of its assets;
(e) advise the Debtor in connection with the sale of assets or
business;
(f) assist the Debtor in its analysis of and negotiation with
any appointed committee or any third-party concerning matters
related to, among other things, the terms of a plan of
reorganization;
(g) assist and advise the Debtor with respect to any
communications with the general creditor body regarding significant
matters in this Chapter 11 case;
(h) commence and prosecute necessary and appropriate actions
and/or proceedings on behalf of the Debtor;
(i) review, analyze, or prepare legal documents;
(j) represent the Debtor at all hearings and other
proceedings;
(k) confer with other professional advisors retained by the
Debtor;
(l) perform all other necessary legal services in this Chapter
11 case as may be requested by the Debtor; and
(m) assist and advise the Debtor regarding pending arbitration
and litigation matters in which the Debtor may be involved.
The hourly rates of the firm's counsel and staff are as follows:
Partners $305 - $460
Associates $225 - $295
Paralegals/Law clerks $150 - $195
In addition, the firm will seek reimbursement for expenses
incurred.
As of the petition date, the firm has been paid the sum of
$6,653.50 for pre-bankruptcy services.
Robert Eggmann, Esq., a partner at Carmody MacDonald, disclosed in
a court filing that his firm is a "disinterested person" as that
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Robert E. Eggmann, Esq.
Thomas H. Riske, Esq.
Carmody MacDonald, PC
120 South Central Avenue, Suite 1800
St. Louis, MO 63105
Telephone: (314) 854-8600
Facsimile: (314) 854-8660
Email: ree@carmodymacdonald.com
thr@carmodymacdonald.com
About Staunton Area Ambulance Service
Staunton Area Ambulance Service, a tax-exempt ambulance service
provider in Staunton, Ill., sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. C.D. Ill. Case No. 22-70777) on
Nov. 21, 2022, with $1,641,287 in total assets and $473,700 in
total liabilities. Dean DeVries, president of Staunton, signed the
petition.
Judge Mary P. Gorman oversees the case.
Robert E. Eggmann, Esq., at Carmody Macdonald, PC is the Debtor's
legal counsel.
STORED SOLAR: Trustee Seeks to Tap Verdolino & Lowey as Accountant
------------------------------------------------------------------
Anthony Manhart, the trustee appointed in the Chapter 11 case of
Stored Solar Enterprises Series, LLC, seeks approval from the U.S.
Bankruptcy Court for the District of Maine to employ Verdolino &
Lowey, PC as accountant.
The firm will render these services:
(a) advise the trustee on his obligations with respect to
taxes;
(b) assist with review and analysis of the Debtor's business
and its operations;
(c) assist with preparation and/or review of cash flow and
related budget projections;
(d) assist with negotiating with secured and other creditors;
(e) assist the trustee in reviewing and analyzing prospective
investment and/or sale proposals and related services;
(f) assist with regard to accounting and accounting system
matters;
(g) assist with records and record retention;
(h) assist with preparation/review/analysis of monthly
operating reports;
(i) assist with preparation and/or review of federal and state
income tax, payroll tax, meals tax and sales and use tax returns;
(j) assist in reviewing, reconciling, analyzing and, if
necessary, objecting to proofs of claim;
(k) assist in reviewing the Debtor books and records for
possible avoidable transactions such as preference and fraudulent
transfer claims;
(l) assist in valuation and insolvency analyses and other
litigation issues and, if necessary, expert report preparation and
testimony;
(m) assist with plan development and preparation;
(n) assist with employee benefit plan issues; and
(o) provide necessary accounting, tax, and advisory services
to the extent requested by the trustee.
The hourly rates of the firm's counsel and staff are as follows:
Principals $525
Managers $275 – $425
Staff $225 – $395
Bookkeepers $175 – $255
In addition, the firm will seek reimbursement for expenses
incurred.
Craig Jalbert, a member at Verdolino & Lowey, disclosed in a court
filing that the firm is a "disinterested person" as that term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Craig R. Jalbert
Verdolino & Lowey, PC
124 Washington Street, Suite 101
Foxboro, MA 02035
Telephone: (508) 543-1720
Facsimile: (508) 543-4114
Email: cjalbert@vlpc.com
About Stored Solar Enterprises Series
Stored Solar Enterprises, Series LLC owns and operate seven
biomass-fueled, renewable energy generating facilities located in
Maine, Massachusetts, and New Hampshire. The plants produce
electric energy, which is transmitted into, and earns payments
from, the ISO New England power grid. Stored Solar has 87
employees.
Stored Solar sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Maine Case No. 22-10191) on Sept. 14,
2022. In the petition signed by its manager, William Harrington,
the Debtor disclosed $50 million to $100 million in assets and $10
million to $50 million in liabilities.
Judge Michael A. Fagone oversees the case.
The Debtor tapped George J. Marcus, Esq., at Marcus Clegg as its
legal counsel and Spinglass Management Group, LLC as its
restructuring advisor.
Anthony J. Manhart was appointed as trustee in this Chapter 11
case. The trustee tapped Preti Flaherty, LLP as legal counsel and
Verdolino & Lowey, PC as accountant.
TARONIS FUELS: Airgas USA Buying CA Business for $5.9 Million
-------------------------------------------------------------
Taronis Fuels, Inc., and affiliates ask the U.S. Bankruptcy Court
for the District of Delaware to authorize:
a. Sellers Taronis Fuels, Inc. (Company), and certain of
their subsidiaries and affiliates to consummate their Term Sheet
with Airgas USA, LLC, for the private going concern sale of
substantially all of the assets, including the real property
located at 1590 E. Kentucky Ave., in Woodland, CA 95776, used in
the industrial gas and welding supply business (CA Business) of
Debtor MagneGas Welding Supply - West, LLC, for the purchase price
of not less than $5.9 million and up to $6.2 million, reduced by
any amounts owed by the Debtors to the Purchaser or its affiliates
related to the operation of the CA Business (e.g. ordinary course
trade debt);
b. the Sellers to assume an unexpired lease of real property,
and to assign the Assumed Contract to the Purchaser pursuant to the
Term Sheet and the Sale Order; and
c. the Sellers to sell real property used in connection with
the operation of the Sellers' CA Business.
Prior to the Petition Date, the Debtors began to explore strategic
transactions to recapitalize or restructure their business units,
including the CA Business. As part of this process, in March of
2022, the Debtors' officers and directors commenced a marketing
process for each of the Debtors' business segments. Prepetition
this resulted in the sale of the Debtors' wholesale business and
its southeastern retail operations (FL Business), which the
Purchaser acquired.
Despite the Debtors' efforts in the marketing process, the Debtors
only received two indications of interest and offers of value for
the CA Business, one of which was from the Purchaser. As of the
Petition Date, the Debtors are not aware of any other parties that
might express interest in the Purchased Assets despite the Debtors
having reached out to every likely strategic purchaser of the CA
Business. While the Purchased Assets could be put up for auction
in the hopes that another bidder might come forward, the terms
offered by the Purchaser are materially superior to the net terms
that the Debtors could hope to achieve at an auction.
Therefore, the Debtors seek Court approval of sale of the CA
Business as a private sale transaction, not subject to post
petition marketing or an auction, but subject to a fiduciary out
should another party submit a higher or otherwise better offer.
The Debtors in their business judgment have determined that it is
unlikely an auction will lead to a higher or otherwise better bid
for the Purchased Assets. Accordingly, they seek to sell the
Purchased Assets and assign the Assumed Contract to the Purchaser,
pursuant to a private sale, free and clear of all liens, claims,
encumbrances and other interests.
Pursuant to the Term Sheet, the closing date of the private sale
will take place on Dec. 31, 2022. The DIP Lender requires a
closing within 35 days of the Petition Date.
The Debtors are not seeking to have the sale declared exempt from
taxes under section 1146(a) of the Bankruptcy Code.
The Debtors are seeking relief from the 14-day stay imposed by
Bankruptcy Rule 6004(h) for the private sale.
About Taronis Fuels
Taronis Fuels, Inc. manufactures and distributes industrial,
medical, specialty and beverage gases and associated welding and
safety supplies. Currently, the Debtors operate 15 retail
locations, three gas fill plants, and have approximately 92
employees, serving retail customers in four states. The Debtors
supply their customers with products ranging from bulk quantities
of cryogenic gases to individual packaged cylinders.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr.D. Del. Case No. 22-11121) on November 11,
2022. In the petition signed by R. Jered Ruyle, chief executive
officer, the Debtor disclosed $10 million to $50 million in
estimated assets and $10 million to $50 million in estimated
liabilities.
The Debtor tapped Potter Anderson & Corroon LLP as general
bankruptcy counsel, Aurora Management Partners, Inc. as
restructuring advisor, and Donlin Recano & Company Inc. as
Debtor's
claims & noticing and administrative agent.
TELEPHONE AND DATA: Egan-Jones Retains B+ FC Sr. Unsec. Debt Rating
-------------------------------------------------------------------
Egan-Jones Ratings Company, on November 21, 2022, retained its 'B+'
foreign currency senior unsecured ratings on debt issued by
Telephone and Data Systems Inc. issued by the Company.
Headquartered in Chicago, Illinois, Telephone and Data Systems,
Inc. is a diversified telecommunications company.
THEOS FEDRO: Trustee Sells San Francisco Property for $6.65M to JS
------------------------------------------------------------------
Janina M. Hoskins, the Chapter 11 trustee of Theos Fedro Holdings,
LLC, asks the U.S. Bankruptcy Court for the Northern District of
California to authorize her to sell the real property commonly
known as 819 Ellis Street, in San Francisco, California 94109, to
JS Sullivan Development and/or assignee for $6.65 million.
In the Debtor's Schedule G, it listed a lease between the Debtor
and AA Parking, Inc. Under the terms of that lease, AA Parking was
required to pay the sum of $20,000 per month in rent based upon a
written four-year lease beginning Jan. 1, 2020. The Debtor's
principal, Philip Achilles, is also the principal of AA Parking.
Pre-petition, the Debtor's records reflected that, under the terms
of the lease, no rent was paid in March of 2020 and partial rent
was paid up until the time of the bankruptcy filing. The Debtor's
schedules show an account from AA Parking as an asset in the sum of
approximately $153,000. It was assumed at the outset, that since
the lease was never performed, to the Trustee's knowledge, no
default was ever declared nor enforcement action taken. Rather,
partial payments were made for long periods, both pre-and
post-petition.
Immediately, issues arose regarding cash collateral and the
lender's complaints about the insider transaction. In the Pender
Motion and supporting declarations, arguments were made that the
Debtor has permitted AA Parking to escape its obligations under the
Lease to the tune of over $150,000, as of the Petition Date and
continuing to accrue thereafter.
On Jan. 28, 2022, the Trustee filed her motion to sell the
Property. After a continuance of a hearing for the resolution of
an objection by the lender, the Court entered its order approving
the sale. The Sale Order provided for the sale free and clear of
liens and interests; however, the Lease was not listed as an
interest and the sale motion was not directed to AA Parking.
Accordingly, the Trustee now wishes to sell the Property free and
clear of the Lease, with the opportunity for AA Parking to seek
adequate protection under 11 U.S.C. Section 363(e).
By way of a letter received by counsel for the Trustee from Marc
Libarle dated Nov. 10, 2022, Mr. Libarle asserted a homestead
exemption on behalf of Mr. Achilles in an amount now over $626,000.
The Property is owned by the Debtor. Accordingly, in order avoid
possible disruption upon the closing of the sale of the Property,
in addition to an order selling free and clear of the Lease of the
Property, an order should also be entered selling free and clear of
the asserted homestead exemption.
Authority exists under both Section 363(f)(1) and Section 363(f)(4)
for the Court to grant the Trustee's motion to sell the Property
free and clear of AA Parking's purported lease of the Property
subject to its right under Section 363(e) to request adequate
protection. The Buyer for the Property is ready to close. If AA
Parking can be removed from the Property by Dec. 1, 2022, the Buyer
believes the sale could close as early as Dec. 15, 2022. However,
if that cannot occur, the Trustee will take those actions to remove
AA Parking so the sale may close by Dec. 30, 2022.
About Theos Fedro Holdings
San Francisco, Calif.-based Theos Fedro Holdings, LLC, provides
support services to the transportation industry. It filed a
voluntary petition for relief under Chapter 11 of the Bankruptcy
Code (Bankr. N.D. Calif. Case No. 21-30202) on March 16, 2021.
Philip Achilles, managing member, signed the petition.
In its petition, the Debtor disclosed $1 million to $10 million in
both assets and liabilities. Judge Dennis Montali oversees the
case. The Law Offices of Stuppi & Stuppi serves as the Debtor's
legal counsel.
Felderstein Fitzgerald Willoughby Pascuzzi & Rios LLP serves as
counsel for Pender Capital Asset Based Lending Fund I, LP,
creditor.
Janina M. Hoskins serves as the Debtor's Chapter 11 Trustee, while
NRT West, Inc. serves as the real estate broker.
THREE STAR TRUCKING: Gets OK to Hire Oliver & Cheek as Counsel
--------------------------------------------------------------
Three Star Trucking, LLC received approval from the U.S. Bankruptcy
Court for the Eastern District of North Carolina to employ The Law
Offices of Oliver & Cheek, PLLC to serve as legal counsel in its
Chapter 11 case.
The firm will be paid based upon its normal and usual hourly
billing rates and will be reimbursed for out-of-pocket expenses
incurred.
Prior to its Chapter 11 filing, the Debtor paid the firm the sum of
$22,265.08 for its legal services.
George Oliver, Esq., a partner at The Law Offices of Oliver &
Cheek, disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
George M. Oliver, Esq.
The Law Offices of Oliver & Cheek, PLLC
P.O. Box 1548
New Bern, NC 28563
Tel: (252) 633-1930
Fax: (252) 633-1950
Email: efile@ofc-law.com
About Three Star Trucking
Three Star Trucking, LLC filed a Chapter 11 bankruptcy petition
(Bankr. E.D.N.C. Case No. 22-02512) on Nov. 2, 2022, with as much
as $1 million in both assets and liabilities. Judge Joseph N.
Callaway oversees the case.
The Debtor is represented by George M. Oliver, Esq., at The Law
Offices of Oliver & Cheek, PLLC.
TOP LINE: $2.5MM Sale of Substantially All Assets to FDC Approved
-----------------------------------------------------------------
Judge Elizabeth D. Katz of the U.S. Bankruptcy Court for the
District of Massachusetts authorized Top Line Granite Design Inc.'s
proposed bidding procedures in connection with the sale of
substantially all assets to FDC EPC, LLC, for $2.5 million, subject
to overbid.
The Asset Purchase Agreement dated Sept. 20, 2022 (along with its
exhibits) is approved.
The Assigned Contracts as set forth in the revised Schedule 1.7 of
the Asset Purchase Agreement are assumed by the Debtor and assigned
to the Buyer pursuant to section 365 of the Bankruptcy Code.
Any remaining financed or leased motor vehicles of the Debtor not
listed in Exhibit B are not assumed and assigned to the Buyer
pursuant to the Order. Disposition of such other assets will be
pursuant to agreement between the Debtor and the non-debtor party,
or further motion to be filed by the Debtor.
After closing, the Buyer agrees to give storage access to the
Debtor for at least 60 days related to any Excluded Assets and
other motor vehicles not assumed and assigned pursuant to the
Order. The Buyer will also cooperate with and make available to
the Debtor all books, records and other materials as may be
required for the administration and closure of the bankruptcy case,
and as provided in Section 7.3 of the Asset Purchase Agreement.
Further, the Debtor will retain or keep copies of all paper records
and computer records for the continued administration and closure
of the bankruptcy case, related to the Excluded Assets, and for any
reasonable business purpose.
The Purchase Price and any cure cost related to the Assigned
Contracts will be paid by the Buyer without offset, deductions or
recoupments.
The sale proceeds will be kept in escrow with the Debtor's client
trust account at Riemer & Braunstein LLP except for distribution or
payment to the DIP Lender (as authorized by the Order), pending an
amended chapter 11 plan or other motion to be filed by the Debtor.
The Sale is free and clear of any and all Encumbrances, which
Encumbrances, if any, will attach to the net proceeds of the asset
sale.
The automatic stay pursuant to Section 362 is lifted with respect
to the Debtor to the extent necessary, without further order of
this Court, to allow the Buyer to deliver any notice provided for
in the Asset Purchase Agreement, and to take any and all actions
permitted under the Asset Purchase Agreement in accordance with the
terms and conditions thereof.
The Debtor is authorized to pay the DIP Lender from the sale
proceeds within two business days of the closing date after receipt
of a payoff statement acceptable to the Debtor and the Subchapter V
trustee. The DIP Lender will file its Fee Statement, if any,
within two business days after receiving notice of entry of the
Order.
The Debtor will promptly serve notice of entry of the Order to all
secured creditors, including the DIP Lender.
Notwithstanding the applicability of Bankruptcy Rules 6004 (h),
6006(d), and 7062, as applicable, the terms and conditions of the
Order will be immediately effective and enforceable upon its entry
by the Court.
The Sale Hearing was held on Nov. 8, 2022.
A copy of the Exhibits is available at https://tinyurl.com/28deteaj
from PacerMonitor.com free of charge.
About Top Line Granite Design
Top Line Granite Design Inc. is a manufacturer of cut stone and
stone products. Top Line offers a selections of kitchen granite,
marble and quartz.
Top Line sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Mass. Case No. 22-40216) on March 25, 2022. In
the petition signed by Edmilson Ramos, president, the Debtor
disclosed up to $10 million in assets and up to $50 million in
liabilities.
Judge Christopher J. Panos oversees the case.
Alan L. Braunstein, Esq., at Riemer and Braunstein LLP is the
Debtor's counsel.
TRUSENTIAL LLC: Has Interim Cash Collateral Access Thru Jan 13
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Ohio,
Western Division, authorized Trusential, LLC to use cash collateral
on an interim basis in accordance with the budget, with a 10%
variance, through January 13, 2023.
The Debtor and Plex are parties to a prepetition "Accounts Purchase
and Security Agreement" dated November 11, 2021, wherein Plex
purchased certain prepetition accounts from the Debtor.
The Debtor acknowledged that Plex duly perfected its first priority
ownership interest in accounts Plex purchased, with a first
priority security interest in all cash collateral. Plex's initial
UCC-1 Financing Statement was thereafter amended to add Trusential
as a debtor.
As adequate protection for the Debtor's use of Plex's cash
collateral and as security for any post-petition interest, charges,
costs and fees that may be authorized by the Court pursuant to 11
U.S.C. section 506(b), Plex is granted pursuant to 11 U.S.C.
sections 361(2) and 363 valid, perfected and enforceable
replacement adequate protection liens upon, and security interests
in, all cash collateral acquired or arising post-petition, to the
extent, validity, and in the order of priority that Plex holds
valid, perfected, and unavoidable prepetition security interests
and/or liens in the Debtor's cash collateral as of the petition
date.
As additional adequate protection pursuant to 11 U.S.C. section 362
and 363, Plex is authorized to retain $26,649 of Proceeds of
Accounts received by Plex prepetition, maintained in an escrow
reserve account controlled by and for the benefit of Plex in
accordance with the Factoring Agreement. The Plex Reserve Funds
serve as additional adequate protection for the Debtor's use of
Plex's cash collateral under the terms of the Order. Plex may not
apply any Reserve Funds to satisfy all or any portion of Plex's
prepetition secured Claim except as may be authorized by further
Court order. Plex's reserves all rights in respect to all Reserve
Funds, including, but not limited to, any rights of set off and
recoupment under the Factoring Agreement, the Bankruptcy Code
and/or common law.
Unless consented to by Plex, in writing, the Debtor's right to use
any cash collateral pursuant to the Order will immediately
terminate after the occurrence of any of these events:
a. If a trustee other than the Subchapter V Trustee is
appointed in the Chapter 11 Case;
b. If the Case is converted to a case under Chapter 7 of the
Bankruptcy Code; or
c. The dismissal of the Case.
The Debtor's right to use any cash collateral will also terminate
within three business days from a written notice by Plex to the
Debtor, the United States Trustee, and the Subchapter V Trustee
after the occurrence of any of these events of default:
a. Payment by the Debtor of any expenses other than those set
forth in the submitted Budget, unless Plex consents to the payment
of the specific expenses, in writing;
b. If the Debtor fails to satisfy any duty contained in the
Order or violates any term or condition of the Order;
c. If the Debtor commits a material breach under the Factoring
Agreement, other than defaults existing as of the Petition Date;
d. The Debtor fails to maintain proper and adequate insurance;
or
e. The Debtor fails to fully cooperate with Plex, as may be
requested by Plex in respect to any efforts that may be taken by
Plex in order to seek to collect from any of the following
customers/Account of the Debtor sums due on certain unpaid and
outstanding prepetition Accounts owing to Plex: Ridgewood Manor,
LLC D/B/A Ridgewood Manor D/B/A Ridgewood Manor Nursing Center,
Concord Care Center of Toledo, INC., D/B/A Concord Care Center
D/B/A The Vista at Concord Care Center of Toledo D/B/A Continental
Health Company of Toledo, LLC, and Geneva Opco LLC D/B/A Geneva
Center for Rehabilitation and Nursing.
A final hearing on the matter is set for January 10 at 9:30 a.m.
A copy of the order and the Debtor's budget is available at
https://bit.ly/3VKjrgK from PacerMonitor.com.
The Debtor projects $24,000 in total income and $13,885 in total
expenses.
About Trusential LLC
Trusential LLC -- https://www.trusentialstaffing.com/ -- is a
nurse-owned and operated healthcare staffing agency that provides
staffing placements for healthcare companies in need.
Trusential LLC filed a voluntary petition for relief under
Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ohio
Case No. 22-31144) on Aug. 3, 2022. In the petition filed by Cyona
Taylor-Randolph, as president and sole member, the Debtor reported
assets between $500,000 and $1 million against its estimated
liabilities between $100,000 and $500,000.
Judge John P. Gustafson oversees the case.
Patricia B. Fugee has been appointed as Subchapter V trustee.
Patricia A. Kovacs, Attorney at Law, is the Debtor's counsel.
VASU CONVENIENCE: Seeks Extension to File Plan to March 28
----------------------------------------------------------
Vasu Convenience, Inc. seeks approval from the U.S. Bankruptcy
Court for the Eastern District of New York to remain in control of
its Chapter 11 case until March 28 next year.
The exclusive period during which only the company can file a plan
to exit bankruptcy protection is set to expire on Dec. 28.
Vasu Convenience will use the extension to complete negotiations to
settle the claim of its landlord, draft a settlement agreement, and
make a new offer to the landlord concerning the leased property,
according to the motion filed by the company in court.
The motion is on the court's calendar for Dec. 13.
About Vasu Convenience
Vasu Convenience, Inc. filed a petition for Chapter 11 protection
(Bankr. E.D. N.Y. Case No. 21-43023) on Dec. 3, 2021, listing up to
$100,000 in assets and up to $500,000 in liabilities. Jigar A.
Patel, president, signed the petition.
Judge Nancy Hershey Lord oversees the case.
The Debtor tapped the Law Offices of Alla Kachan, P.C. and Wisdom
Professional Services Inc. as its legal counsel and accountant,
respectively.
VERSACE BERTONI: Gets OK to Tap Lewis Brisbois Bisgaard as Counsel
------------------------------------------------------------------
Versace Bertoni Gelato, LLC received approval from the U.S.
Bankruptcy Court for the Southern District of Florida to employ
Lewis Brisbois Bisgaard & Smith, LLP as its counsel.
The firm will render these legal services:
(a) advise the Debtor with respect to its powers and duties in
the continued management of its affairs;
(b) advise the Debtor with respect to its responsibilities in
complying with the U.S. Trustee's Operating Guidelines and
Reporting Requirements and with the rules of the court;
(c) prepare legal documents;
(d) protect the interests of the Debtor and the estate in all
matters pending before the court; and
(e) represent the Debtor in negotiations with its creditors in
the preparation of a Chapter 11 plan.
The hourly rates of the firm's counsel and staff are as follows:
Partners $400 - $900
Associates $300 - $475
Paralegals and Assistants $125 - $325
In addition, the firm will seek reimbursement for expenses
incurred.
Vincent Alexander, Esq., a partner at Lewis Brisbois Bisgaard &
Smith, disclosed in a court filing that the firm is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
Vincent F. Alexander, Esq.
Lewis Brisbois Bisgaard & Smith, LLP
110 SE 6th Street, Suite 2600
Fort Lauderdale, FL 33301
Telephone: (954) 728-1280
Email: vincent.alexander@lewisbrisbois.com
About Versace Bertoni Gelato
Versace Bertoni Gelato, LLC offers food items and services in
Miami-Dade County, Fla.
Versace Bertoni Gelato filed a petition for relief under Subchapter
V of Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No.
22-17688) on Oct. 1, 2022. In the petition filed by its manager,
Stefano Versace, the Debtor reported up to $50,000 in assets and up
to $10 million in liabilities. Aleida Martinez-Molina has been
appointed as Subchapter V trustee.
Judge Robert A. Mark oversees the case.
Vincent F. Alexander, Esq., at Lewis Brisbois Bisgaard & Smith, LLP
serves as the Debtor's legal counsel.
WAKASA LLC: Court OKs Cash Collateral Access Thru Dec 5
-------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas,
Houston Division, authorized Wakasa LLC to use cash collateral on
an interim basis in accordance with the budget, with a 10%
variance, through December 5, 2022.
As adequate protection for the use of cash collateral, all
creditors are granted replacement liens on all post-petition cash
collateral and post-petition acquired property to the same extent
and priority they possessed as of the Petition Date.
A final electronic hearing on the matter is set for December 5 at
1:30 p.m.
A copy of the order and the Debtor's budget is available at
https://bit.ly/3AVdWUn from PacerMonitor.com.
The Debtor projects $350,000 in cash receipts and $265,901 in cash
disbursements for 30 days.
About Wakasa LLC
Wakasa LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Case No. 22-33323) on November 4,
2022. In the petition signed by Stephen Clark, president, the
Debtor disclosed up to $50,000 in assets and up to $1 million in
liabilities.
Judge Eduardo V. Rodriguez oversees the case.
Robert C Lane, Esq., at The Lane Law Firm, is the Debtor's legal
counsel.
WAYNE S. BUNTEN: Trustee's $296K Sale of Concord Asset to Vu OK'd
-----------------------------------------------------------------
Judge Bruce A. Harwood of the U.S. Bankruptcy Court for the
District of New Hampshire authorized Edmond J. Ford, the Chapter 7
Trustee for Wayne Stephen Bunten, to sell the real estate known as
3 Greenwich Street, in Concord, New Hampshire, to Duke Vu for
$296,000.
The Agreement attached to the Motion as Exhibit A is approved with
the proviso that the sale price is amended to $296,000.
The Trustee is authorized to sell the entirety of the Property to
Mr. Vu, subject to the lien of MCSB and other liens of record,
which will be satisfied at closing and to execute and deliver
whatever documents may be necessary to effectuate the sale.
The Trustee is authorized to pay or cause to be paid (i) the
Mortgage to Merrimack County Savings Bank in full at closing
without further order; (ii) the realtor's commission to David
Millett and Bean Group and Coldwell Banker Realty Manchester
without further order; and (iii) two-thirds of the proceeds after
the realtor's commission, real estate taxes, mortgage, transfer
stamps and other costs of sale to the Co-owners without further
order.
The Trustee is authorized to make adjustments to the HUD as
necessary, write checks or to authorize payment of closing
expenses, the amounts owed to the co-owners, and to satisfy the
mortgage lien and the Realtor's commissions from the proceeds of
the sale.
The stay of Rule 6004(h) is waived.
The judgment in the Adversary Proceeding Ford v. Bunten, Baker and
Turni Adv. P. No. 22-01012 will simultaneously enter in favor of
the Plaintiff, contingent on closing, and that costs are awarded to
neither party.
The bankruptcy case is In re: Wayne Stephen Bunten, Case No.
22-10172-BAH (Bankr. D.N.H.).
WB BRIDGE HOTEL: Sale of Brooklyn Property to Secured Creditor OK'd
-------------------------------------------------------------------
Judge Sean H. Lane of the U.S. Bankruptcy Court for the Southern
District of New York authorized WB Bridge Hotel, LLC, and 159
Broadway Member, LLC, to sell the real property located at 159
Broadway, in Brooklyn, New York 11211 (Block: 2457, Lots 34 and
9039) to 159 Broadway 1 LLC, their Secured Creditor.
The Sale is free and clear of all claims, liens, and encumbrances
against the Property of any nature whatsoever.
The Secured Creditor (or its nominee, designee or assignee) will
not assume and the Debtor will reject all executory contracts,
unless the Secured Creditor (or its nominee, designee or assignee)
complies with the Plan's requirements in section 5.1 of the Plan.
Debtor 159 Member and the Secured Creditor (or its nominee,
designee or assignee) are authorized to execute any and all
documents necessary to effectuate the Sale of the Property.
At the closing of the sale of the Property, the Debtor (or its
agent) and, where applicable, 159 Member will deliver all documents
and items reasonably necessary to convey title to the Property to
the Secured Creditor (or its nominee, designee or assignee).
The 14-day stay provided for in Rule 6004(h) of the Federal Rules
of Bankruptcy Procedure is waived and will not be in effect and,
pursuant to Rule 6004, 7062, and 9014 of the Federal Rules of
Bankruptcy Procedure, the Order will be effective and enforceable
immediately upon entry.
Pursuant to Section 1146(a) of the Bankruptcy Code, the Sale of the
Property as contemplated by the Bid Procedures, the Plan, the
Confirmation Order and the Order and any deed further conveying the
Property within two years following the Sale by the Secured
Creditor (or its nominee, designee or assignee) will be exempt from
the payment of transfer, stamp, deed, mortgage recording, or
similar taxes, including without limitation, and any recorder of
deeds or similar official for any governmental unit in which any
instrument thereunder is to be recorded will be ordered and
directed to accept such instrument without requiring the payment of
any transfer, stamp, deed, mortgage recording, or similar taxes.
At the closing of the Sale of the Property, the Distribution Agent
(as defined in the Plan) will make all payments required to be made
under the Plan.
The Secured Creditor will pay (i) the Broker $125,000 as a
commission and $2,000 for the Broker's expenses that are approved
at the closing of the Sale of the Property; and (ii) at the closing
of the Sale of the Property (a) the final fee Court's Order dated
June 30, 2022; (b) the sum of $22,582.35 for post-confirmation
services to the estate for a total of $25,302.75, and (c) the sum
of $219,994.40 to Robinson Brog Leinwand Greene Genovese & Gluck
P.C. pursuant to the Final Fee Order.
About WB Bridge Hotel
WB Bridge Hotel LLC and 159 Broadway Member LLC are the owners of
a
hotel and residential tower project in Brooklyn's hip Williamsburg
neighborhood. The project covers a planned 26-story tower at 159
Broadway in Brooklyn, N.Y., that includes apartments and a
235-room
hotel across the street from the legendary Peter Luger Steakhouse.
The Debtors are affiliated with Hollywood, Fla.-based GC Realty
Advisors LLC. They are also affiliated with 85 Flatbush RHO Mezz
LLC, the owner of the Tillary Hotel Brooklyn, located at 85
Flatbush Extension, Brooklyn, N.Y.
WB Bridge Hotel and 159 Broadway Member sought Chapter 11
protection (Bankr. S.D.N.Y. Lead Case No. 20-23288) on Dec. 21,
2020. The Debtors were each estimated to have $10 million to $50
million in assets and liabilities.
Judge Robert D. Drain oversees the cases.
Robinson Brog Leinwand Greene Genovese & Gluck PC is the Debtors'
legal counsel.
The U.S. Trustee for Region 2 appointed an official committee of
unsecured creditors in the Debtors' Chapter 11 cases. The
committee tapped SilvermanAcampora, LLP, as its legal counsel.
Secured creditor 159 Broadway 1 LLC is represented by KRISS &
FEUERSTEIN LLP.
WESTBANK HOLDINGS: Amends Unsecured Claims Pay Details
------------------------------------------------------
Joshua L. Bruno, sole member of Westbank Holdings, LLC, Cypress
Park Apartments II, LLC, Forest Park Apartments, LLC, Liberty Park
Apartments, LLC, Washington Place, LLC, and Riverview Apartments,
LLC (collectively, "Debtors") submitted an Amended Disclosure
Statement for Plans of Reorganization dated November 28, 2022.
The primary purpose of the Plan is to reorganize the debts of the
Debtors and make distributions to holders of Allowed Claims.
The Plan contemplates payments to all holders of Allowed Claims
against the Debtor based upon the cash flow created through the
business operations of the Debtor and new loans. The holders of
Equity Interests will not receive any distribution.
Plan Filed by Westbank Holdings, LLC:
* Class 5 General Unsecured Trade Claims. Each holder of an
Allowed Class 5 Claim will receive such holder's Pro Rata share
(shared along with Holders of Class 6 and 7 Claims) of $2,000,000,
paid quarterly over a period of 5 years without interest. Holders
of Allowed Class 5 Claims shall also receive proceeds of Retained
Avoidance Actions, Pro Rata Share with Holders of Allowed Class 6
and 7 Claims. If Class 5 votes to accept the Plan, to the extent
that Cash Flow for any given calendar year (2023 - 2027) exceeds
$100,000, 25% of the excess will be paid to Holders of Allowed
Class 5 Claims, to be shared Pro Rata with Holders of Class 6 and 7
Claims to the extent such Class(es) vote to accept the Plan.
* Class 6 Utility Provider Claims. Each holder of an Allowed
Class 6 Claim will receive such holder's Pro Rata share (shared
along with Holders of Class 5 and 7 Claims) of $2,000,000, paid
over a period of 5 years without interest. If Class 6 votes to
accept the Plan, to the extent that Cash Flow for any given
calendar year (2023 - 2027) exceeds $100,000, 25% of the excess
will be paid to Holders of Allowed Class 6 Claims, to be shared Pro
Rata with Holders of Class 5 and 7 Claims to the extent such
Class(es) vote to accept the Plan.
* Class 7 General Unsecured Claims. Each holder of an Allowed
Class 7 Claim will receive such holder's Pro Rata share (shared
along with Holders of Class 5 and 6 Claims) of $2,000,000, paid
over a period of 5 years without interest. If Class 7 votes to
accept the Plan, to the extent that Cash Flow for any given
calendar year (2023 - 2027) exceeds $100,000, 25% of the excess
will be paid to Holders of Allowed Class 7 Claims, to be shared Pro
Rata with Holders of Class 5 and 6 Claims to the extent such
Class(es) vote to accept the Plan.
Plan Filed by Cypress Park Apartments II, LLC:
* Class 5 General Unsecured Trade Claims The total estimate of
the Class 5 Claim: $82,937. Each holder of an Allowed Class 5 Claim
will receive such holder's Pro Rata share (shared along with
Holders of Class 6 and 7 Claims) of $500,000, paid quarterly over a
period of 5 years without interest. Holders of Allowed Class 5
Claims shall also receive proceeds of Retained Avoidance Actions,
Pro Rata Share with Holders of Allowed Class 6 and 7 Claims. If
Class 5 votes to accept the Plan, to the extent that Cash Flow for
any given calendar year (2023 - 2027) exceeds $100,000, 25% of the
excess will be paid to Holders of Allowed Class 5 Claims, to be
shared Pro Rata with Holders of Class 6 and 7 Claims to the extent
such Class(es) vote to accept the Plan.
* Class 6 Utility Provider Claims. Each holder of an Allowed
Class 6 Claim will receive such holder's Pro Rata share (shared
along with Holders of Class 5 and 7 Claims) of $500,000, paid over
a period of 5 years without interest. Holders of Allowed Class 6
Claims shall also receive proceeds of Retained Avoidance Actions,
Pro Rata Share with Holders of Allowed Class 5 and 7 Claims. If
Class 6 votes to accept the Plan, to the extent that Cash Flow for
any given calendar year (2023 - 2027) exceeds $100,000, 25% of the
excess will be paid to Holders of Allowed Class 6 Claims, to be
shared Pro Rata with Holders of Class 5 and 7 Claims to the extent
such Class(es) vote to accept the Plan.
* Class 7 General Unsecured Claims. Each holder of an Allowed
Class 7 Claim will receive such holder's Pro Rata share (shared
along with Holders of Class 5 and 6 Claims) of $500,000, paid over
a period of 5 years without interest. Holders of Allowed Class 7
Claims shall also receive proceeds of Retained Avoidance Actions,
Pro Rata Share with Holders of Allowed Class 5 and 6 Claims. If
Class 7 votes to accept the Plan, to the extent that Cash Flow for
any given calendar year (2023 - 2027) exceeds $100,000, 25% of the
excess will be paid to Holders of Allowed Class 6 Claims, to be
shared Pro Rata with Holders of Class 5 and 6 Claims to the extent
such Class(es) vote to accept the Plan.
Plan Filed by Forest Park Apartments, LLC:
* Class 5 General Unsecured Trade Claims. Each holder of an
Allowed Class 5 Claim will receive such holder's Pro Rata share
(shared along with Holders of Class 6 and 7 Claims) of $100,000,
paid quarterly over a period of 2 years without interest. Holders
of Allowed Class 5 Claims shall also receive proceeds of Retained
Avoidance Actions, Pro Rata Share with Holders of Allowed Class 6
and 7 Claims If Class 5 votes to accept the Plan, to the extent
that Cash Flow for any given calendar year (2023 - 2027) exceeds
$100,000, 25% of the excess will be paid to Holders of Allowed
Class 5 Claims, to be shared Pro Rata with Holders of Class 6 and 7
Claims to the extent such Class(es) vote to accept the Plan.
* Class 6 Utility Provider Claims. Each holder of an Allowed
Class 6 Claim will receive such holder's Pro Rata share (shared
along with Holders of Class 5 and 7 Claims) of $100,000, paid over
a period of 2 years without interest. Holders of Allowed Class 6
Claims shall also receive proceeds of Retained Avoidance Actions,
Pro Rata Share with Holders of Allowed Class 5 and 7 Claims. If
Class 6 votes to accept the Plan, to the extent that Cash Flow for
any given calendar year (2023 - 2027) exceeds $100,000, 25% of the
excess will be paid to Holders of Allowed Class 6 Claims, to be
shared Pro Rata with Holders of Class 5 and 7 Claims to the extent
such Class(es) vote to accept the Plan.
* Class 7 General Unsecured Claims. Each holder of an Allowed
Class 7 Claim will receive such holder's Pro Rata share (shared
along with Holders of Class 5 and 6 Claims) of $100,000, paid over
a period of 2 years without interest. Holders of Allowed Class 7
Claims shall also receive proceeds of Retained Avoidance Actions,
Pro Rata Share with Holders of Allowed Class 5 and 6 Claims. If
Class 7 votes to accept the Plan, to the extent that Cash Flow for
any given calendar year (2023 - 2027) exceeds $100,000, 25% of the
excess will be paid to Holders of Allowed Class 7 Claims, to be
shared Pro Rata with Holders of Class 5 and 6 Claims to the extent
such Class(es) vote to accept the Plan.
Plan Filed by Liberty Park Apartments, LLC:
* Class 5 General Unsecured Trade Claims. Each holder of an
Allowed Class 5 Claim will receive such holder's Pro Rata share
(shared along with Holders of Class 6 and 7 Claims) of $70,000,
paid quarterly over a period of 2 years without interest. Holders
of Allowed Class 5 Claims shall also receive proceeds of Retained
Avoidance Actions, Pro Rata Share with Holders of Allowed Class 6
and 7 Claims. If Class 5 votes to accept the Plan, to the extent
that Cash Flow for any given calendar year (2023 - 2027) exceeds
$100,000, 25% of the excess will be paid to Holders of Allowed
Class 5 Claims, to be shared Pro Rata with Holders of Class 6 and 7
Claims to the extent such Class(es) vote to accept the Plan.
* Class 6 Utility Provider Claims. Each holder of an Allowed
Class 6 Claim will receive such holder's Pro Rata share (shared
along with Holders of Class 5 and 7 Claims) of $70,000, paid over a
period of 2 years without interest. Holders of Allowed Class 6
Claims shall also receive proceeds of Retained Avoidance Actions,
Pro Rata Share with Holders of Allowed Class 5 and 7 Claims. If
Class 6 votes to accept the Plan, to the extent that Cash Flow for
any given calendar year (2023 - 2027) exceeds $100,000, 25% of the
excess will be paid to Holders of Allowed Class 6 Claims, to be
shared Pro Rata with Holders of Class 5 and 7 Claims to the extent
such Class(es) vote to accept the Plan.
* Class 7 General Unsecured Claims. Each holder of an Allowed
Class 7 Claim will receive such holder's Pro Rata share (shared
along with Holders of Class 5 and 6 Claims) of $70,000, paid over a
period of 2 years without interest. Holders of Allowed Class 7
Claims shall also receive proceeds of Retained Avoidance Actions,
Pro Rata Share with Holders of Allowed Class 5 and 6 Claims. If
Class 7 votes to accept the Plan, to the extent that Cash Flow for
any given calendar year (2023 - 2027) exceeds $100,000, 25% of the
excess will be paid to Holders of Allowed Class 7 Claims, to be
shared Pro Rata with Holders of Class 5 and 6 Claims to the extent
such Class(es) vote to accept the Plan.
Plan Filed by Washington Place, LLC:
* Class 5 General Unsecured Trade Claims. Each holder of an
Allowed Class 5 Claim will receive such holder's Pro Rata share
(shared along with Holders of Class 6 and 7 Claims) of $200,000,
paid quarterly over a period of 2 years without interest. Holders
of Allowed Class 5 Claims shall also receive proceeds of Retained
Avoidance Actions, Pro Rata Share with Holders of Allowed Class 6
and 7 Claims. If Class 5 votes to accept the Plan, to the extent
that Cash Flow for any given calendar year (2023 - 2027) exceeds
$100,000, 25% of the excess will be paid to Holders of Allowed
Class 5 Claims, to be shared Pro Rata with Holders of Class 6 and 7
Claims to the extent such Class(es) vote to accept the Plan.
* Class 6 Utility Provider Claims. Each holder of an Allowed
Class 6 Claim will receive such holder's Pro Rata share (shared
along with Holders of Class 5 and 7 Claims) of $200,000, paid over
a period of 2 years without interest. Holders of Allowed Class 6
Claims shall also receive proceeds of Retained Avoidance Actions,
Pro Rata Share with Holders of Allowed Class 5 and 7 Claims. If
Class 6 votes to accept the Plan, to the extent that Cash Flow for
any given calendar year (2023 - 2027) exceeds $100,000, 25% of the
excess will be paid to Holders of Allowed Class 6 Claims, to be
shared Pro Rata with Holders of Class 5 and 7 Claims to the extent
such Class(es) vote to accept the Plan.
* Class 7 General Unsecured Claims. Each holder of an Allowed
Class 7 Claim will receive such holder's Pro Rata share (shared
along with Holders of Class 5 and 6 Claims) of $200,000, paid over
a period of 2 years without interest. Holders of Allowed Class 7
Claims shall also receive proceeds of Retained Avoidance Actions,
Pro Rata Share with Holders of Allowed Class 5 and 6 Claims. If
Class 7 votes to accept the Plan, to the extent that Cash Flow for
any given calendar year (2023 - 2027) exceeds $100,000, 25% of the
excess will be paid to Holders of Allowed Class 7 Claims, to be
shared Pro Rata with Holders of Class 5 and 6 Claims to the extent
such Class(es) vote to accept the Plan.
Plan Filed by Riverview Apartments, LLC:
* Class 5 General Unsecured Trade Claims. Each holder of an
Allowed Class 5 Claim will receive such holder's Pro Rata share
(shared along with Holders of Class 6 and 7 Claims) of $100,000,
paid quarterly over a period of 5 years without interest. Holders
of Allowed Class 5 Claims shall also receive proceeds of Retained
Avoidance Actions, Pro Rata Share with Holders of Allowed Class 6
and 7 Claims. If Class 5 votes to accept the Plan, to the extent
that Cash Flow for any given calendar year (2023 - 2027) exceeds
$100,000, % of the excess will be paid to Holders of Allowed Class
5 Claims, to be shared Pro Rata with Holders of Class 6 and 7
Claims to the extent such Class(es) vote to accept the Plan.
* Class 6 Utility Provider Claims. Each holder of an Allowed
Class 6 Claim will receive such holder's Pro Rata share (shared
along with Holders of Class 5 and 7 Claims) of $100,000, paid over
a period of 5 years without interest. Holders of Allowed Class 6
Claims shall also receive proceeds of Retained Avoidance Actions,
Pro Rata Share with Holders of Allowed Class 5 and 7 Claims. If
Class 6 votes to accept the Plan, to the extent that Cash Flow for
any given calendar year (2023 - 2027) exceeds $100,000, 25% of the
excess will be paid to Holders of Allowed Class 6 Claims, to be
shared Pro Rata with Holders of Class 5 and 7 Claims to the extent
such Class(es) vote to accept the Plan.
* Class 7 General Unsecured Claims. Each holder of an Allowed
Class 7 Claim will receive such holder's Pro Rata share (shared
along with Holders of Class 5 and 6 Claims) of $100,000, paid over
a period of 5 years without interest. Holders of Allowed Class 7
Claims shall also receive proceeds of Retained Avoidance Actions,
Pro Rata Share with Holders of Allowed Class 5 and 6 Claims. If
Class 7 votes to accept the Plan, to the extent that Cash Flow for
any given calendar year (2023 - 2027) exceeds $100,000, 25% of the
excess will be paid to Holders of Allowed Class 7 Claims, to be
shared Pro Rata with Holders of Class 5 and 6 Claims to the extent
such Class(es) vote to accept the Plan.
The Debtor's ability to make the payments and distributions
required under the Plan depends upon repairing and leasing
apartments in the future that generates sufficient available cash
flow to pay all operational expenses and to make the payments and
distributions required under the Plan.
A full-text copy of the Amended Disclosure Statement dated November
28, 2022, is available at https://bit.ly/3gTkVGy from
PacerMonitor.com at no charge.
Attorneys for Joshua L. Bruno:
CONGENI LAW FIRM, LLC
LEO D. CONGENI
650 Poydras Street, Suite 2750
New Orleans, LA 70130
Telephone: 504-522-4848
Facsimile: 504-910-3055
Email: leo@congenilawfirm.com
About Westbank Holdings
Westbank Holdings, LLC is a New Orleans, La.-based company
primarily engaged in renting and leasing real estate properties.
Westbank Holdings and its affiliates filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. La.
Lead Case No. 22-10082) on Jan. 27, 2022. In its petition, Westbank
Holdings listed as much as $50 million in both assets and
liabilities. Joshua Bruno, manager, signed the petition.
Judge Meredith S. Grabill oversees the cases.
Frederick L. Bunol, Esq., at The Derbes Law Firm, LLC, Alvendia
Kelly & Demarest, LLC and G Rowland CPA & Associates serve as the
Debtors' bankruptcy counsel, special counsel and accountant,
respectively. Richard W. Cryar, a partner at F M Reed Company, is
the Debtors' chief restructuring officer.
Dwayne M. Murray, the Chapter 11 trustee appointed in the Debtors'
cases, tapped Fishman Haygood, LLP as counsel and Patrick J. Gros,
CPA, as accountant.
WINDSTREAM HOLDINGS: S&P Rates $250MM Super-Senior Term Loan 'B+'
-----------------------------------------------------------------
S&P Global Ratings assigned its 'B+' issue-level rating and '1'
recovery rating to the $250 million super-senior incremental term
loan due 2027 issued by Windstream Holdings Inc.'s wholly-owned
subsidiary Windstream Services LLC. The '1' recovery rating
indicates our expectation for very high (90%-100%; rounded
estimate: 95%) recovery in the event of a payment default.
Windstream will use the proceeds from the new term loan for general
corporate purposes, including the repayment of the $115 million of
outstanding borrowings under its revolving credit facility. The
company will also use the added liquidity to help fund its
public-private partnerships, under which it plans to deploy
fiber-to-home (FTTH) to over 140,000 locations in rural markets.
S&P said, "At the same time, we assigned our 'BB-' issue-level
rating and '1+' recovery rating to Windstream Services LLC's
super-senior revolving credit facility following its extension of
$475 million of the $500 million commitment to 2027. The remaining
$25 million of the facility that was not extended will mature in
2024. The '1+' recovery rating indicates our expectation for full
(100%; rounded estimate: 100%) recovery in the event of a payment
default. Our recovery rating on the super-senior revolving credit
facility is higher than our recovery rating on the super-senior
incremental term loan because the latter is junior to the former in
right of repayment.
"We also lowered our issue-level rating on the company's first-lien
debt to 'B-' from 'B' and revised our recovery rating to '3' from
'2'. The '3' recovery rating indicates our expectation for
meaningful (50%-70%; rounded estimate: 65%) recovery in the event
of a payment default. We lowered our rating on the company's
first-lien debt, including the first-lien term loan due 2027 and
7.750% first-lien notes due 2028, to reflect the additional debt,
which ranks senior to the first-lien debt and will dilute the
recovery prospects for its first-lien lenders in our hypothetical
default scenario.
"Our 'B-' issuer credit rating and stable outlook on Windstream are
unchanged. Although we expect the additional debt to increase the
company's S&P Global Ratings-adjusted leverage to about 5.2x in
2022 (which includes the long-term lease obligation associated with
Uniti), from about 5.0x under our previous base-case forecast, we
believe its leverage remains supportive of the current rating. Our
base-case forecast assumes that Windstream funds its fiber build
plan with committed funding from Uniti. The company is being
reimbursed for up to $1.75 billion of network upgrades in its
Incumbent Local Exchange Carrier (ILEC) and Competitive Local
Exchange Carrier (CLEC) territories. The reimbursements reduce the
total cash outflow to Uniti from Windstream by partially offsetting
the more than $650 million of annual rent it pays to Uniti and
reducing the amount of capital expenditure required to upgrade its
network. Therefore, we do not expect Windstream to need a
significant amount of external funding to complete its FTTH builds
over the next few years. This will likely help it maintain leverage
in the low-5x area as it aims to deploy fiber to over 50% of its
footprint by 2025."
WOLVERINE WORLD: Egan-Jones Retains 'B' FC Sr. Unsecured Ratings
----------------------------------------------------------------
Egan-Jones Ratings Company, on November 21, 2022, retained its 'B'
foreign currency senior unsecured ratings on debt issued by
Wolverine World Wide Inc.
Headquartered in Rockford, Michigan, Wolverine World Wide, Inc.
manufactures and markets branded footwear and performance leathers.
[^] BOOK REVIEW: Performance Evaluation of Hedge Funds
------------------------------------------------------
Performance Evaluation of Hedge Funds: A Quantitative Approach
Edited by Greg N. Gregoriou, Fabrice Rouah, and Komlan Sedzro
Publisher: Beard Books
Hardcover: 203 pages
List price: $59.95
Review by Henry Berry
Order your copy at https://bit.ly/3yPU9oz
Hedge funds can be traced back to 1949 when Alfred Winslow Jones
formed the first one to "hedge" his investments in the stock market
by betting that some stocks would go up and others down. However,
it has only been within the past decade that hedge funds have
exploded in growth. The rise of global markets and the
uncertainties that have arisen from the valuation of different
currencies have given a boost to hedge funds. In 1998, there were
approximately 3,500 hedge funds, managing capital of about $150
billion. By mid-2006, 9,000 hedge funds were managing $1.2
trillion in assets.
Despite their growing prominence in the investment community, hedge
funds are only vaguely understood by most people. Performance
Evaluation of Hedge Funds addresses this shortcoming. The book
describes the structure, workings, purpose, and goals of hedge
funds. While hedge funds are loosely defined as "funds with no
rules," the editors define these funds more usefully as "privately
pooled investments, usually structured as a partnership between the
fund managers and the investors." The authors then expand upon
this definition by explaining what sorts of investments hedge funds
are, the work of the managers, and the reasons investors join a
hedge fund and what they are looking for in doing so.
For example, hedge funds are characterized as an "important avenue
for investors opting to diversify their traditional portfolios and
better control risk" -- an apt characterization considering their
tremendous growth over the last decade. The qualifications to join
a hedge fund generally include a net worth in excess of $1 million;
thus, funds are for high net-worth individuals and institutional
investors such as foundations, life insurance companies,
endowments, and investment banks. However, there are many
individuals with net worth below $1 million that take part in hedge
funds by pooling funds in financial entities that are then eligible
for a hedge fund.
This book discusses why hedge funds have become "notorious as
speculating vehicles," in part because of highly publicized
incidents, both pro and con. For example, George Soros made $1
billion in 1992 by betting against the British pound. Conversely,
the hedge fund Long-Term Capital Management (LTCP) imploded in
1998, with losses totaling $4.6 billion. Nonetheless, these are
the exceptions rather than the rule, and the editors offer
statistics, studies, and other research showing that the
"volatility of hedge funds is closer to that of bonds than mutual
funds or equities."
After clarifying what hedge funds are and are not, the book
explains how to analyze hedge fund performance and select a
successful hedge fund. It is here that the book has its greatest
utility, and the text is supplemented with graphs, tables, and
formulas.
The analysis makes one thing clear: for some investors, hedge funds
are an investment worth considering. Most have a demonstrable
record of investment performance and the risk is low, contrary to
common perception. Investors who have the necessary capital to
invest in a hedge fund or readers who aspire to join that select
club will want to absorb the research, information, analyses,
commentary, and guidance of this unique book.
Greg N. Gregoriou (1956–2018) was a professor of finance and a
native of Montreal, Quebec, Canada. He received his joint Ph. D.
in 2004 with a specialization in the area of finance from the
University of Quebec at Montreal, Canada. He taught at U.S. and
Canadian universities and did research for large corporations.
Fabrice Douglas Rouah is a Director with Sapient Global Markets and
is based in New York City. He specializes in financial risk
management and is the co-author and co-editor of several books.
Komlan Sedzro, Ph. D., is the Dean of the School of Management,
University of Quebec in Montreal. He has been a professor in the
Department of Finance at ESG UQAM since 1997. He holds a master’s
degree in business economics from the University of Clermont in
France and a doctorate in Business Administration (Finance and
Insurance) from Laval University.
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.
Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
The Sunday TCR delivers securitization rating news from the week
then-ending.
TCR subscribers have free access to our on-line news archive.
Point your Web browser to http://TCRresources.bankrupt.com/and use
the e-mail address to which your TCR is delivered to login.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Philadelphia, Pa., USA.
Randy Antoni, Jhonas Dampog, Marites Claro, Joy Agravante,
Rousel Elaine Tumanda, Joel Anthony G. Lopez, Psyche A. Castillon,
Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and
Peter A. Chapman, Editors.
Copyright 2022. All rights reserved. ISSN: 1520-9474.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers. Information contained
herein is obtained from sources believed to be reliable, but is
not guaranteed.
The TCR subscription rate is $975 for 6 months delivered via
e-mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance thereof
are $25 each. For subscription information, contact Peter A.
Chapman at 215-945-7000.
*** End of Transmission ***