/raid1/www/Hosts/bankrupt/TCR_Public/221208.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Thursday, December 8, 2022, Vol. 26, No. 341
Headlines
3B ENTERPRISES: Starts Subchapter V Bankruptcy Proceeding
960 FRANKLIN: Seeks to Hire Backenroth as Legal Counsel
ADAMS 3: Seeks to Hire Comprehensive Business as Accountant
AEARO TECHNOLOGIES: Taps Clement & Murphy as Appellate Counsel
AEARO TECHNOLOGIES: Tort Committee Seeks to Hire Appellate Counsel
ALMONDE INC: DoubleLine ISF Values $3M Loan at 82% of Face
APPALACHIAN VALLEY: Case Summary & Five Unsecured Creditors
APX GROUP: S&P Places 'B-' ICR on Watch Pos. on NRG Energy Deal
ARTERA SERVICES: DoubleLine ISF Values $2M Loan at 59% of Face
ASHLEY CAMPBELL: Unsecureds Will Get 100% in Subchapter V Plan
ASTRA ACQUISITION: DoubleLine Values $1.5M Loan at 85% of Face
ASURION LLC: DoubleLine ISF Values $4.2M Loan at 77% of Face
ASURION LLC: DoubleLine ISF Values $905,000 Loan at 76% of Face
ATLANTIC HOUSING: S&P Lowers 2017B Rev. Bonds Rating to 'B+'
ATLAS PURCHASER: DoubleLine ISF Values $4M Loan at 79% of Face
AUBSP OWNERCO 8: Seeks to Hire Stoel Rives as Special Counsel
AUBSP OWNERCO 8: Seeks to Tap Cross & Simon as Special Counsel
AURORA HOSPITALITY: Seeks to Tap David Freydin as Legal Counsel
AVAYA HOLDINGS: Delays Form 10-K Amid Internal Investigations
AVAYA INC: DoubleLine ISF Values $3.1M Loan at 55% of Face
AVE HOLDINGS III: Golub Values $1.48M Loan at 66% of Face
AVE HOLDINGS III: Golub Values $14,000 Loan at 71% of Face
AVEANNA HEALTHCARE: DoubleLine ISF Values $7.8M Loan at 74% of Face
BJH HOLDINGS III.: Golub Values $35,000 Loan at 77% of Face
BVM THE BRIDGES: Court OKs Interim Cash Collateral Access
CARBON IQ: Case Summary & Eight Unsecured Creditors
CELSIUS NETWORK: Taps Ernst & Young as Tax Services Provider
CHASE INDUSTRIES: Golub Values $1.95M Loan at 82% of Face
CHASE INDUSTRIES: Golub Values $174,000 Loan at 80% of Face
CHASE INDUSTRIES: Golub Values $338,000 Loan at 82% of Face
CITIUS PHARMACEUTICALS: FDA Accepts Application of Denileukin
CLOUD MOUNTAIN: Unsecured Creditors to be Paid in Full over 5 Years
CONNECTICUT RESTORATION: Seeks to Tap Grafstein & Arcaro as Counsel
CORE SCIENTIFIC: Faces Suit for Improper Disclosure of Financials
CREDIT SUISSE: Next Round of Job Cuts Set to Start
CREDITO REAL: Said to be in Talks With Bondholders
CSC HOLDINGS: S&P Assigns 'B+' Rating on New Term Loan Due 2028
DIOCESE OF ROCHESTER: Bankruptcy Plan Could Set Template for Others
DIOCESE OF ROCHESTER: Dioceses' Deals Spurn Insurance Companies
DOUBLE EAGLE: S&P Affirms 'B' ICR on Term Loan Upsize
ECOARK HOLDINGS: Files Cert. of Amendment to Increase Share Value
EYECARE SERVICES: Golub Values $1.2M Loan at 65% of Face
EYECARE SERVICES: Golub Values $127,000 Loan at 52% of Face
EYECARE SERVICES: Golub Values $4M Loan at 65% of Face
EYECARE SERVICES: Golub Values $91,000 Loan at 65% of Face
FARRAGUT HEALTH: Seeks to Hire SquareOne Realty as Broker
FARRAGUT HEALTH: Taps Senior Living Investment Brokerage as Broker
FAST RADIUS: Gets OK to Hire Stretto as Administrative Advisor
FIRST BRANDS: S&P Rates New $300MM 1st-Lien Term Loan Add-On 'B+'
FTX GROUP: Binance Gains From Collapse as Trading Surges
FTX GROUP: House Financial Services Panel Sets Dec. 13 Hearing
GAUCHO GROUP: Signs Exchange Agreement With Noteholders
GIRARDI & KEESE: Feds Say Ex-CFO Drained GK With Fake Vendors
GK8 LTD: Case Summary & 20 Largest Unsecured Creditors
GLOBAL PROCESSING: Gets OK to Hire Day Rettig Martin as Counsel
GREENWORKS SERVICE: Case Summary & Seven Unsecured Creditors
GT REAL ESTATE: Reaches Tentative Bankruptcy Deal With Rock Hill
GWG HOLDINGS: Unsecureds to Recover Up to 100% of Claims in Plan
HARRIS PHARMACEUTICAL: Trustee Taps David R. Softness as Counsel
HAYWARD INDUSTRIES: S&P Rates New $125MM Secured Term Loan 'BB'
HEALTH BUYER, LLC: Golub Values $2,000 Loan at 50% of Face
HJ DYNAMIC: Unsecureds Will Recove 10% in Subchapter V Plan
HOBBS WOOD: Case Summary & Three Unsecured Creditors
HOBBY LOBBY MARINE: Starts Subchapter V Bankruptcy Case
HOLONG CS: Unsecureds to Recover Up to 100% in Liquidating Plan
LASELL UNIVERSITY: S&P Lowers 2021 Revenue Bonds Rating to 'BB'
LHOTSE CIS: Gets OK to Hire NewGen Advisory as Real Estate Broker
LHOTSE CIS: Unsecureds to Recover Up to 100% in Liquidating Plan
LOTUS SKY: Unsecureds Will Get 25% of Claims over 60 Months
MARLIN KRIDER: Seeks Cash Collateral Access
MESA TERRACE: Trustee Gets OK to Tap Transcend as Property Manager
MICROVISION INC: To Acquire Ibeo Assets for EUR 15 Million
MWH TRUCKING: Seeks to Hire Narron Wenzel as Bankruptcy Counsel
NEW YORK COMMUNITY BANCORP: S&P Affirms 'BB+' Issuer Credit Rating
NEWTON CONSTRUCTION: Unsecureds to be Paid in Full in 60 Months
NORTH FORK: Taps Bocarsly as Special Tax Counsel
NRG ENERGY: S&P Places 'BB+' Issuer Credit Rating on Watch Neg.
OBSTETRIC & GYNECOLOGIC: Seeks to Hire Nyemaster Goode as Counsel
OBSTETRIC & GYNECOLOGIC: Taps J. Varsalone of G2 Capital as CRO
OBSTETRIC & GYNECOLOGIC: Taps Levenfeld Pearlstein as Legal Counsel
OBSTETRIC & GYNECOLOGIC: Taps Stretto as Claims and Noticing Agent
ORBIT ENERGY: Seeks Cash Collateral Access
PENNYROYAL LOGISTICS: Case Summary & Three Unsecured Creditors
PHARMASTRATEGIES LLC: Taps Benezra & Culver as Special Counsel
PUERTO RICO: Judge Rejects Stay of HTA Plan of Adjustment
REACTION BIOLOGY: Golub Values $867,000 Loan at 75% of Face
RITE AID: S&P Lowers Issuer Credit Rating Lowered To 'SD'
RIVERBEND ENVIRONMENTAL: Taps Pittman Roberts & Welsh as Counsel
RUBY PIPELINE: Debtor, Noteholders Clash on Bids
SABRINAS ATLANTIC: Court OKs Interim Cash Collateral Access
SKAR CONSTRUCTION: Seeks to Hire Bruner Wright as Legal Counsel
SPRINGER AEROSPACE: Gets CCAA Initial Stay Order; MNP Named Monitor
TARONIS FUELS: Seeks to Hire Potter Anderson & Corroon as Counsel
TARONIS FUELS: Taps Aurora Management Partners to Provide CRO
TARONIS FUELS: Taps Chipman Brown Cicero & Cole as Special Counsel
TARONIS FUELS: Taps Donlin, Recano & Co. as Administrative Advisor
TRAYLOR CHATEAU: Case Summary & Five Unsecured Creditors
TRISEPTEM DEVELOPERS: Case Summary & Four Unsecured Creditors
VSG ACQUISITION: Golub Values $101,000 Loan at 50% of Face
WEATHERFORD INTERNATIONAL: S&P Hikes ICR to 'B', Outlook Stable
[^] Recent Small-Dollar & Individual Chapter 11 Filings
*********
3B ENTERPRISES: Starts Subchapter V Bankruptcy Proceeding
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3B Enterprises LLC filed for chapter 11 protection in the U.S.
Bankruptcy Court for the Eastern District of California. The
Debtor elected on its voluntary petition to proceed under
Subchapter V of chapter 11 of the Bankruptcy Code.
The Debtor is a general contractor that specializes in meeting
Northern California's demand for underground infrastructure by
offering a full complement of turn-key construction solutions that
include technical excavation, gas pipeline fashion, electrical and
communications conduit substructures, and complete site
restoration, amongst others.
According to court filings, 3B Enterprises LLC estimates $1 million
to $10 million in debt owed to 1 to 49 creditors. The petition
states that funds will be available to unsecured creditors.
About 3B Enterprises
3B Enterprises LLC offers a wide range of aggregates and sand. It
also offers custom crushing and on-site crushing for all project
needs.
3B Enterprises filed a petition for relief under Subchapter V of
Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No.
22-22999) on Nov. 18, 2022. In the petition filed by Mark Allen,
as manager, the Debtor reported assets and liabilities between $1
million and $10 million.
The Debtor is represented by:
Stephen M. Reynolds. Esq.
PO Box 1177
Elverta, CA 95626
960 FRANKLIN: Seeks to Hire Backenroth as Legal Counsel
-------------------------------------------------------
960 Franklin Owner, LLC seeks approval from the U.S. Bankruptcy
Court for the Eastern District of New York to hire Backenroth
Frankel & Krinsky, LLP as its legal counsel.
The firm's services include:
(a) advising the Debtor regarding its powers and duties in the
continued operation of its business and management of its property
during the Chapter 11 case;
(b) preparing legal papers;
(c) formulating and negotiating a plan of reorganization with
creditors; and
(d) other necessary legal services.
Backenroth received $27,000 as initial retainer from the Debtor
prior to its Chapter 11 filing.
The hourly rates of the firm's counsel and staff are as follows:
Scott A. Krinsky $625 per hour
Mark A. Frankel $685 per hour
Abraham J. Backenroth $750 per hour
Paralegals $125 per hour
In addition, the firm will seek reimbursement for expenses
incurred.
Mark Frankel, Esq., a member of Backenroth, disclosed in court
filings that the firm and its attorneys are "disinterested persons"
as that term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Mark A. Frankel, Esq.
Backenroth Frankel & Krinsky, LLP
800 Third Avenue
New York, NY 10022
Telephone: (212) 593-1100
Facsimile: (212) 644-0544
Email: mfrankel@bfklaw.com
About 960 Franklin Owner
960 Franklin Owner, LLC is engaged in activities related to real
estate. The company is based in Brooklyn, N.Y.
960 Franklin Owner filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No.
22-42760) on Nov. 2, 2022, with up to $50,000 in assets and $10
million to $50 million in liabilities. David Goldwasser, manager,
signed the petition.
Judge Jil Mazer-Marino presides over the case.
Mark Frankel, Esq., at Backenroth Frankel & Krinsky, LLP represents
the Debtor as legal counsel.
ADAMS 3: Seeks to Hire Comprehensive Business as Accountant
-----------------------------------------------------------
Adams 3, LLC seeks approval from the U.S. Bankruptcy Court for the
District of Columbia to hire Comprehensive Business of Northern
Virginia, LLC as its accountant.
The Debtor requires an accountant to assist with budgeting, monthly
operating reports, financial projections and federal and state tax
returns.
The fees charged by the firm will be at the standard rate of $175
per hour.
Chris Banagan, president of Comprehensive Business, disclosed in a
court filing that his firm does not hold interest adverse to the
Debtor's estate.
The firm can be reached through:
Chris V. Banagan
Comprehensive Business of Northern Virginia, LLC
7633 Leesburg Pike
Falls Church, VA 22043
Phone: (703) 448-1224
About Adams 3 LLC
Adams 3, LLC filed a petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. D.C. Case No. 22-00205) on Nov. 1, 2022,
with between $1 million and $10 million in both assets and
liabilities. Napoleon Ibiezugbe, as officer, signed the petition.
Frank Morris, II, Esq., at the Law Office of Frank Morris, II and
Comprehensive Business of Northern Virginia, LLC serve as the
Debtor's legal counsel and accountant, respectively.
AEARO TECHNOLOGIES: Taps Clement & Murphy as Appellate Counsel
--------------------------------------------------------------
Aearo Technologies, LLC and its affiliates seek approval from the
U.S. Bankruptcy Court for the Southern District of Indiana to
employ Clement & Murphy, PLLC as appellate counsel.
The Debtors require legal assistance in appellate proceedings
related to their Chapter 11 cases. Specifically, Clement & Murphy
will represent the Debtors in connection with their appeal of the
order denying their motion for preliminary injunction issued by the
Indiana bankruptcy court in Adversary Proceeding No. 22-50059. The
appeal is currently pending before the U.S. Court of Appeals for
the Seventh Circuit.
The hourly rates of the firm's counsel and staff are as follows:
Partners $1,150 – $2,250
Of Counsel $1,140
Associates $800 – $1,130
Paralegals $405 – $460
In addition, the firm will seek reimbursement for expenses
incurred.
The firm provided the following information pursuant to paragraph
D.1. of the U.S. Trustee Guidelines:
Question: Did you agree to any variations from, or alternatives
to, your standard or customary billing arrangements for this
engagement?
Answer: Clement & Murphy did not agree to any variations from, or
alternatives to, its standard or customary billing arrangements for
this engagement.
Question: Do any of the professionals included in this engagement
vary their rate based on the geographic location of the bankruptcy
case?
Answer: None of the professionals from Clement & Murphy included
in this engagement have varied or will vary their rate based on the
geographic location of the bankruptcy case.
Question: Has your client approved your prospective budget and
staffing plan, and, if so, for what budget period?
Answer: Clement & Murphy has submitted to the Debtors for
approval a staffing plan and budget for Clement & Murphy that
covers the time period from Nov. 27 to Dec. 31, 2022.
Paul Clement, Esq., a partner at Clement & Murphy, 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:
Paul D. Clement, Esq.
Clement & Murphy PLLC
706 Duke Street
Alexandria, VA 22314
Telephone: (202) 742-8900
Email: paul.clement@clementmurphy.com
About Aearo Technologies
Aearo Technologies, LLC -- https://earglobal.com/en -- is a 3M
company that designs, manufactures, and sells personal protection
equipment. The Indianapolis-based company serves customers
worldwide.
To address claims related to the Combat Arms Earplugs Version 2,
Aearo Technologies and its affiliates sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Ind. Lead Case
No. 22-02890) on July 26, 2022. In the petition filed by John R.
Castellano, as authorized signatory, Aearo Technologies listed $1
billion to $10 billion in both assets and liabilities.
Judge Jeffrey J. Graham oversees the cases.
The Debtors tapped Kirkland & Ellis and Ice Miller, LLP as
bankruptcy counsels; McDonald Hopkins, LLC as special counsel;
Bates White, LLC as claims valuation consultant; AP Services, LLC
as restructuring advisor; and Kroll, LLC as claims agent and
noticing agent. John R. Castellano, managing director at
AlixPartners LLP, an affiliate of AP Services, serves as the
Debtors' chief restructuring officer.
The U.S. Trustee for Region 10 appointed two separate official
committees to represent tort claimants in the Debtors' cases. The
tort claimants assert claims related to the use of faulty combat
arms earplugs and respirators manufactured by the companies. The
tort committee related to use of combat arms version 2 earplugs
tapped Houlihan Lokey Capital, Inc. as investment banker and
Province, LLC as financial advisor.
AEARO TECHNOLOGIES: Tort Committee Seeks to Hire Appellate Counsel
------------------------------------------------------------------
The official committee of tort claimants appointed in the Chapter
11 cases of Aearo Technologies, LLC and its affiliates seeks
approval from the U.S. Bankruptcy Court for the Southern District
of Indiana to employ Kellogg, Hansen, Todd, Figel & Frederick, PLLC
as its special appellate counsel.
The committee, which represents holders of tort claims related to
the use of combat arms earplugs, requires a special counsel to:
a. assist, advise and represent the tort committee in its
meetings, consultations, and negotiations with the Debtors and
other parties in interest regarding appellate proceedings in the
Debtors' Chapter 11 cases;
b. assist, advise and represent the tort committee in
litigating appeals, including by drafting and filing any necessary
appellate briefs, motions or other filings;
c. prepare for and appear on behalf of the tort committee in
any appellate hearings, oral arguments or other proceedings as may
be required;
d. advise the tort committee and its professionals concerning
the status of appellate proceedings; and
e. provide other necessary services to the tort committee.
The firm will charge these hourly fees:
Partners $995 - $1,495 per hour
Of Counsel $940 per hour
Associates $650 - $915 per hour
Paralegals $465 per hour
David Frederick, Esq., a partner at Kellogg, disclosed in a court
filing that his firm is a "disinterested person" within the meaning
of Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
David C. Frederick, Esq.
Kellogg, Hansen, Todd, Figel & Frederick, PLLC
Sumner Square
1615 M Street, N.W., Suite 400
Washington, D.C. 20036
Tel: 202.326.7951
Fax: 202.326.7999
Email: dfrederick@kellogghansen.com
About Aearo Technologies
Aearo Technologies, LLC -- https://earglobal.com/en -- is a 3M
company that designs, manufactures, and sells personal protection
equipment. The Indianapolis-based company serves customers
worldwide.
To address claims related to the Combat Arms Earplugs Version 2,
Aearo Technologies and its affiliates sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Ind. Lead Case
No. 22-02890) on July 26, 2022. In the petition filed by John R.
Castellano, as authorized signatory, Aearo Technologies listed $1
billion to $10 billion in both assets and liabilities.
The Debtors tapped Kirkland & Ellis and Ice Miller, LLP as
bankruptcy counsels; McDonald Hopkins, LLC as special counsel;
Bates White, LLC as claims valuation consultant; AP Services, LLC
as restructuring advisor; and Kroll, LLC as claims agent and
noticing agent. John R. Castellano, managing director at
AlixPartners LLP, an affiliate of AP Services, serves as the
Debtors' chief restructuring officer.
Judge Jeffrey J. Graham oversees the cases.
The U.S. Trustee for Region 10 appointed two separate official
committees to represent tort claimants in the Debtors' cases. The
tort claimants assert claims related to the use of faulty combat
arms earplugs and respirators manufactured by the companies. The
tort committee related to use of combat arms version 2 earplugs
tapped Houlihan Lokey Capital, Inc. as investment banker and
Province, LLC as financial advisor.
ALMONDE INC: DoubleLine ISF Values $3M Loan at 82% of Face
----------------------------------------------------------
DoubleLine Income Solutions Fund has marked its $3,000,000 loan
extended to Almonde, Inc., to market at $2,469,390, or 82.3% of the
outstanding amount, as of September 30, 2022, according to a
disclosure contained in DoubleLine ISF's Form N-CSR for the fiscal
year ended September 30, filed with the Securities and Exchange
Commission on December 2.
DoubleLine ISF extended a Senior Secured Second Lien Term Loan (6
Month LIBOR USD + 7.25%, 1.00% Floor) to Almonde, Inc. The loan
currently has an interest rate of 10.62% and is scheduled to mature
on June 16, 2025.
DoubleLine Income Solutions Fund (NYSE: DSL) was formed as a
closed-end management investment company registered under the
Investment Company Act of 1940, as amended, and originally
classified as a non-diversified fund. The Fund is currently
operating as a diversified fund.
APPALACHIAN VALLEY: Case Summary & Five Unsecured Creditors
-----------------------------------------------------------
Debtor: Appalachian Valley Transport, Inc.
101 Northgate Preserve Drive
Newnan, GA 30265
Business Description: The Debtor provides express delivery
services.
Chapter 11 Petition Date: December 7, 2022
Court: United States Bankruptcy Court
Northern District of Georgia
Case No.: 22-11359
Judge: Hon. Paul Baisier
Debtor's Counsel: Will Geer, Esq.
ROUNTREE, LEITMAN, KLEIN & GEER, LLC
2987 Clairmont Road Suite 350
Atlanta, GA 30329
Tel: 678-587-8740
Email: wgeer@rlkglaw.com
Estimated Assets: $50,000 to $100,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Gina Hobbs-Wood as CEO.
A full-text copy of the petition containing, among other items, a
list of the Debtor's five unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/PJSUZBA/Appalachian_Valley_Transport_Inc__ganbke-22-11359__0001.0.pdf?mcid=tGE4TAMA
APX GROUP: S&P Places 'B-' ICR on Watch Pos. on NRG Energy Deal
---------------------------------------------------------------
S&P Global Ratings placed all its ratings on APX Group Holdings
d/b/a Vivint (NYSE: VVNT) on CreditWatch with positive
implications, including its 'B-' issuer credit rating, 'B'
issue-level ratings on its senior secured debt, and 'CCC'
issue-level rating on its senior unsecured debt.
S&P said, "The CreditWatch placement reflects our view that the
transaction will enhance Vivint's credit position because it is
being acquired by a higher-rated entity. We expect to resolve the
CreditWatch placement or discontinue the ratings after the proposed
acquisition closes depending on whether any of Vivint's rated
obligations remain outstanding.
"The CreditWatch placement reflects the strong likelihood that we
will raise our ratings on Vivint to 'BB-' from 'B-' after its
acquisition by higher-rated NRG Energy closes. This is because we
believe Vivint will be strategically important to NRG, therefore
NRG will likely provide extraordinary support in the event of a
stress scenario at Vivint. The expectation for support in most
foreseeable circumstances results in a three-notch uplift to our
rating on Vivint compared with its stand-alone credit profile." The
transaction has been approved by the board of directors of both
companies and a majority of Vivint's shareholders, though it
remains subject to customary closing conditions.
Vivint's operating performance has been solid over the last several
quarters, including strong revenue and subscriber growth, and its
lowest attrition level in years. The company has reduced leverage
from 8x as of year-end 2019 to 4.4x as of year-end 2021.
Nevertheless, the company still generates minimal free cash flow
because of higher interest expense, and high customer acquisition
costs to achieve subscriber growth and retention targets. S&P said,
"We forecast better free cash flow generation in the
low-single-digit percentage area in 2023 and 2024, however, we
believe NRG will use cash generated at Vivint to help service NRG
debt. As a result, we do not expect any changes in Vivint's
stand-alone credit profile when it combines with NRG."
S&P said, "The CreditWatch positive placement reflects the
likelihood that we will assess Vivint as a strategically important
subsidiary of NRG when the deal closes, resulting in a three-notch
uplift given the likelihood for extraordinary support from NRG
(assuming it is completed as proposed). If the company's debt is
repaid at the close of the transaction, we would withdraw all our
ratings on Vivint. We expect to resolve the CreditWatch after the
acquisition closes, which we anticipate will occur in the first
quarter of 2023."
ESG credit indicators: E-2, S-2, G-3
ARTERA SERVICES: DoubleLine ISF Values $2M Loan at 59% of Face
--------------------------------------------------------------
DoubleLine Income Solutions Fund has marked its $2,000,000 loan
extended to Artera Services LLC, to market at $1,188,000, or 59% of
the outstanding amount, as of September 30, 2022, according to a
disclosure contained in DoubleLine ISF's Form N-CSR for the fiscal
year ended September 30, filed with the Securities and Exchange
Commission on December 2.
DoubleLine ISF extended a Senior Secured Second Lien Term Loan (3
Month LIBOR USD + 7.25%, 1.00% Floor) to Artera Services LLC. The
loan currently has an interest rate of 10.92% and is scheduled to
mature on March 6, 2026.
DoubleLine Income Solutions Fund (NYSE: DSL) was formed as a
closed-end management investment company registered under the
Investment Company Act of 1940, as amended, and originally
classified as a non-diversified fund. The Fund is currently
operating as a diversified fund.
Artera Services, LLC provides utility line construction services.
ASHLEY CAMPBELL: Unsecureds Will Get 100% in Subchapter V Plan
--------------------------------------------------------------
Ashley Campbell, Inc., filed with the U.S. Bankruptcy Court for the
District of Colorado a Subchapter V Plan of Reorganization dated
December 1, 2022.
Debtor is a full-service interior design firm and primarily focuses
on residential projects. Debtor conducts business in the Denver
metro area and has been in business since 2005. Ashley Ehmke is the
CEO of Debtor. Ms. Ehmke has been the sole shareholder of Debtor
since 2011.
Prior to the filing of this bankruptcy case, Debtor was involved in
extensive and costly litigation with the Ashenmils and with Homuth
relating to the amounts and validity of their claims. The ongoing
expense of this litigation triggered this Chapter 11 filing. Since
the Chapter 11 filing, Debtor has continued its operations as a
Chapter 11 debtor-in-possession.
On the Petition Date, Debtor had no tax liabilities and was current
on all amounts owing to employees. Debtor has no secured creditors.
Debtor has four unsecured creditors. Ashley Ehmke is jointly liable
on these four unsecured Claims. The claims of two of those
unsecured creditors are undisputed. Those two creditors are: JP
Morgan Chase (Trade Debt - $14,016) and Michael Brownlee (Attorney
Fees - $63,988).
The claims of the other two unsecured creditors are disputed. Those
two creditors are: Warren and Lisa Ashenmil (Claimed amount -
$634,633) and Larry Homuth (Claimed Amount - $315,505). Ms. Hemke
has filed Objections to the Claims of the Ashenmils and Homuth in
the Chapter 13 Case and Debtor has filed comparable Objections in
this case. Those Objections are pending.
Class II consists of the Claims of all Allowed Unsecured Creditors
of Debtor. Creditors in this Class will receive a 100% distribution
on the Allowed amount of each claim. This amount will be paid in
equal pro-rata monthly installments of $5,000, with the first
monthly payment being due on the Effective Date. Each subsequent
monthly payment will be due on the fifteenth day of each month
thereafter, until all Allowed Unsecured Claims have been paid in
full.
Class III consists of Ashley Ehmke's 100% interest in Debtor. Ms.
Ehmke will retain her interest in Debtor.
The Plan provides that Debtor will continue its interior design
operations. Debtor will make all business decisions relating to
this operation. The income from these operations will fund the
payments to be made through the Plan. The Plan will pay all Allowed
Claims in full.
The Debtor will submit all of the funds necessary for execution of
this Plan to the supervision and control of the Subchapter V
Trustee and in accordance with the terms of the Plan. The
Subchapter V Trustee will make payments on all Impaired Claims and
will make payments to holders of Allowed Unsecured Claims in
accordance with the Plan. Debtor will not submit any income to the
Subchapter V Trustee other than as set forth in the Plan.
A full-text copy of the Plan of Reorganization dated December 1,
2022, is available at https://bit.ly/3Y6hnBq from PacerMonitor.com
at no charge.
Attorney for Debtor:
Guy B. Humphries, Esq.
Guy Humphries, Attorney At Law
1801 Broadway Suite 1100
Denver, CO 80202
Tel: (303) 832-0029
Email: guyhumphries@msn.com
About Ashley Campbell Inc.
Ashley Campbell, Inc. sought protection for relief under Chapter 11
of the Bankruptcy Code (Bankr. D. Col. Case No. 22-13187) on August
24, 2022, listing $100,001 to $500,000 on both assets and
liabilities. Judge Elizabeth E Brown presides over the case.
Guy B. Humphries, Esq., at Guy Humphries, Attorney At Law,
represents the Debtor as counsel.
ASTRA ACQUISITION: DoubleLine Values $1.5M Loan at 85% of Face
--------------------------------------------------------------
DoubleLine Income Solutions Fund has marked its $1,506,559 loan
extended to Astra Acquisition Corporation, to market at $1,288,108,
or 85% of the outstanding amount, as of September 30, 2022,
according to a disclosure contained in DoubleLine ISF's Form N-CSR
for the fiscal year ended September 30, filed with the Securities
and Exchange Commission on December 2.
DoubleLine ISF extended a Senior Secured First Lien Term Loan (1
Month LIBOR USD + 5.25%, 0.50% Floor) to Astra Acquisition
Corporation. The loan currently has an interest rate of 8.37% and
is scheduled to mature on October 25, 2028.
DoubleLine Income Solutions Fund (NYSE: DSL) was formed as a
closed-end management investment company registered under the
Investment Company Act of 1940, as amended, and originally
classified as a non-diversified fund. The Fund is currently
operating as a diversified fund.
Astra Acquisition Corp. was formed by the purchase (from Leeds
Capital), announced January 16, 2020, of both Campus Management
Acquisition Corp. and Edcentric Holdings LLC by private equity firm
Veritas Capital.
ASURION LLC: DoubleLine ISF Values $4.2M Loan at 77% of Face
------------------------------------------------------------
DoubleLine Income Solutions Fund has marked its $4,225,000 loan
extended to Asurion LLC, to market at $3,253,250, or 77.0% of the
outstanding amount, as of September 30, 2022, according to a
disclosure contained in DoubleLine ISF's Form N-CSR for the fiscal
year ended September 30, filed with the Securities and Exchange
Commission on December 2.
DoubleLine ISF extended a Senior Secured Second Lien Term Loan (1
Month LIBOR USD + 5.25%) to Asurion LLC. The loan currently has an
interest rate of 8.37% and is scheduled to mature on January 19,
2029.
DoubleLine Income Solutions Fund (NYSE: DSL) was formed as a
closed-end management investment company registered under the
Investment Company Act of 1940, as amended, and originally
classified as a non-diversified fund. The Fund is currently
operating as a diversified fund.
Asurion, LLC is a privately held company based in Nashville,
Tennessee, that provides insurance for smartphones, tablets,
consumer electronics, appliances, satellite receivers and jewelry.
ASURION LLC: DoubleLine ISF Values $905,000 Loan at 76% of Face
---------------------------------------------------------------
DoubleLine Income Solutions Fund has marked its $905,000 loan
extended to Asurion LLC, to market at $686,669, or 76% of the
outstanding amount, as of September 30, 2022, according to a
disclosure contained in DoubleLine ISF's Form N-CSR for the fiscal
year ended September 30, filed with the Securities and Exchange
Commission on December 2.
DoubleLine ISF extended a Senior Secured Second Lien Term Loan (1
Month LIBOR USD + 5.25%) to Asurion LLC. The loan currently has an
interest rate of 8.37% and is scheduled to mature on January 31,
2028.
DoubleLine Income Solutions Fund (NYSE: DSL) was formed as a
closed-end management investment company registered under the
Investment Company Act of 1940, as amended, and originally
classified as a non-diversified fund. The Fund is currently
operating as a diversified fund.
Asurion, LLC is a privately held company based in Nashville,
Tennessee, that provides insurance for smartphones, tablets,
consumer electronics, appliances, satellite receivers and jewelry.
ATLANTIC HOUSING: S&P Lowers 2017B Rev. Bonds Rating to 'B+'
------------------------------------------------------------
S&P Global Ratings lowered its rating two notches to 'B+' from 'BB'
on Capital Trust Agency, Fla.'s subordinate multifamily housing
revenue bonds, series 2017B, issued for Atlantic Housing Foundation
Inc. (AHF) properties. The outlook is stable.
"The downgrade reflects S&P Global Ratings-calculated debt service
coverage of 1.0x in fiscal 2021 due to lower net rent and occupancy
specifically related to the Arbors at Sam Houston property and
higher operating expenses across the portfolio and a management and
governance assessment of weak," said S&P Global Ratings credit
analyst Jessica Pabst.
The bonds were issued in late 2017. The bond proceeds, along with
those from senior multifamily tax-exempt mortgage-backed securities
(series 2017A outstanding at $79.5 million, backed by Fannie Mae),
were used to refinance and renovate a pool of five properties in
Texas and Florida--a mix of student-, senior-, and
unenhanced-affordable housing. The downgrade only considers the
series 2017B bonds outstanding, at about $4.5 million. S&P rates
the senior lien (AA+/Stable), which falls under Federally Enhanced
Housing criteria.
The stable outlook reflects S&P's opinion that the projects'
coverage and liquidity factors will remain in line with its current
analysis and remain close to 1x in the near term due to continued
low occupancy at Arbors at Sam Houston. This also includes its
expectation that our assessment of the owner's management and
governance, the properties' physical condition and curb appeal, and
the project's demand and supply considerations will remain
unchanged over the outlook period.
ATLAS PURCHASER: DoubleLine ISF Values $4M Loan at 79% of Face
--------------------------------------------------------------
DoubleLine Income Solutions Fund has marked its $4,039,200 loan
extended to Atlas Purchaser, Inc., to market at $3,185,919, or 79%
of the outstanding amount, as of September 30, 2022, according to a
disclosure contained in DoubleLine ISF's Form N-CSR for the fiscal
year ended September 30, filed with the Securities and Exchange
Commission on December 2.
DoubleLine ISF extended a Senior Secured First Lien Term Loan (6
Month LIBOR USD + 5.25%, 0.75% Floor) to Atlas Purchaser, Inc. The
loan currently has an interest rate of 8.68% and is scheduled to
mature on May 8, 2028.
DoubleLine Income Solutions Fund (NYSE: DSL) was formed as a
closed-end management investment company registered under the
Investment Company Act of 1940, as amended, and originally
classified as a non-diversified fund. The Fund is currently
operating as a diversified fund.
Atlas Purchaser, Inc., which does business as Alvaria, Inc,
acquired the assets of Aspect Software in a leveraged buyout in
2021. Aspect is a provider of call center software and solutions.
AUBSP OWNERCO 8: Seeks to Hire Stoel Rives as Special Counsel
-------------------------------------------------------------
AUBSP Ownerco 8, LLC and AUBSP Ownerco 9, LLC seek approval from
the U.S. Bankruptcy Court for the Southern District of Florida to
employ Stoel Rives, LLP as special counsel.
The Debtors need a special counsel to represent them in connection
with the appeal of the Ada County District Court's decision in the
lawsuit captioned TJV Associates LLC v. RA2 Boise Overland L.L.C.
et. al., Case No. CV-21-07907.
The hourly rates of the firm's counsel are as follows:
J.B. Evans $340
Christopher Pooser $570
In addition, the firm will seek reimbursement for expenses
incurred.
J.B. Evans, Esq., an associate at Stoel Rives, 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:
J.B. Evans, Esq.
Stoel Rives LLP
101 S. Capitol Boulevard, Suite 1900
Boise, ID 83702
Telephone: (208) 389-9000
Facsimile: (208) 389-9040
Email: jb.evans@stoel.com
About AUBSP Ownerco 8
AUBSP Ownerco 8, LLC, formerly known as RA2 Boise-Fairview, LLC,
and AUBSP Ownerco 9, LLC, formerly known as RA2 Boise-Overland,
LLC, filed petitions for Chapter 11 protection (Bankr. S.D. Fla.
Lead Case No. 22-18613) on Nov. 4, 2022. In the petitions signed by
Richard Sabella, authorized agent, the Debtors disclosed up to $10
million in both assets and liabilities.
The Debtors tapped Thomas M. Messana, Esq., at Underwood Murray,
P.A. as bankruptcy counsel; and Stoel Rives, LLP and Cross & Simon,
LLC as special counsels.
AUBSP OWNERCO 8: Seeks to Tap Cross & Simon as Special Counsel
--------------------------------------------------------------
AUBSP Ownerco 8, LLC and AUBSP Ownerco 9, LLC seek approval from
the U.S. Bankruptcy Court for the Southern District of Florida to
employ Cross & Simon, LLC as special counsel.
The Debtors need a special counsel to represent them in connection
with a case against Financial Structures Limited, Case No.
N21C-09-095 AML.
The hourly rates of the firm's counsel and staff are as follows:
Michael Vild $615
Christopher Simon $615
Other paraprofessionals and attorneys $220 - $550
In addition, the firm will seek reimbursement for expenses
incurred.
Christopher Simon, Esq., an attorney at Cross & Simon, 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:
Christopher P. Simon, Esq.
Cross & Simon, LLC
1105 N. Market Street, Suite 901
Wilmington, DE 19801
Telephone: (302) 777-4200
Email: csimon@crosslaw.com
About AUBSP Ownerco 8
AUBSP Ownerco 8, LLC, formerly known as RA2 Boise-Fairview, LLC,
and AUBSP Ownerco 9, LLC, formerly known as RA2 Boise-Overland,
LLC, filed petitions for Chapter 11 protection (Bankr. S.D. Fla.
Lead Case No. 22-18613) on Nov. 4, 2022. In the petitions signed by
Richard Sabella, authorized agent, the Debtors disclosed up to $10
million in both assets and liabilities.
The Debtors tapped Thomas M. Messana, Esq., at Underwood Murray,
P.A. as bankruptcy counsel; and Stoel Rives, LLP and Cross & Simon,
LLC as special counsels.
AURORA HOSPITALITY: Seeks to Tap David Freydin as Legal Counsel
---------------------------------------------------------------
Aurora Hospitality Group LLC seeks approval from the U.S.
Bankruptcy Court for the Northern District of Illinois to employ
the Law Offices of David Freydin PC as its bankruptcy counsel.
The Debtor requires the assistance of counsel to represent it in
matters concerning negotiation with creditors, preparation of a
plan, corporate restructuring, analysis of claims and potential
causes of action and other assets, and to otherwise represent the
Debtor in matters before the bankruptcy court.
The hourly rates of the firm's attorneys are as follows:
David Freydin $350
Jan Michael Hulstedt $325
Dustin Allen $325
Jeremy Nevel $325
In addition, the firm will seek reimbursement for expenses
incurred.
David Freydin, Esq., disclosed in a court filing that his firm is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
David Freydin, Esq.
Law Offices of David Freydin, PC
8707 Skokie Blvd., Suite 312
Skokie, IL 60077
Telephone: (847) 972-6157
Facsimile: (866) 897-7577
Email: david.freydin@freydinlaw.com
About Aurora Hospitality Group
Aurora Hospitality Group LLC is a Single Asset Real Estate (as
defined in 11 U.S.C. Sec. 101(51B)).
Aurora Hospitality Group filed a petition for relief under
Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ill.
Case No. 22-12930) on Nov. 7, 2022. In the petition filed by its
manager, Kenneth Moore, the Debtor disclosed between $1 million and
$10 million in both assets and liabilities. William B. Avellone has
been appointed as Subchapter V Trustee.
Judge Lashonda A. Hunt oversees the case.
The Law Offices of David Freydin PC serves as the Debtor's counsel.
AVAYA HOLDINGS: Delays Form 10-K Amid Internal Investigations
-------------------------------------------------------------
Avaya Holdings Corp. was unable to file, without unreasonable
effort and expense, its Annual Report on Form 10-K for the fiscal
year ended Sept. 30, 2022.
As previously disclosed in the Company's NT 10-Q filed with the
U.S. Securities & Exchange Commission on Aug. 9, 2022, the audit
committee of the Company's board of directors commenced internal
investigations to review, among other things, the circumstances
surrounding the Company's financial results for the quarter ended
June 30, 2022 and items related to a whistleblower claim. The
Audit Committee investigations remain on-going. The investigations
may also result in the conclusion by the Company that one or more
material weaknesses exist in the Company's internal control over
financial reporting in addition to those disclosed in the Company's
Form 8-K filed on Nov. 30, 2022. The Company is also continuing to
complete its assessment of the previously disclosed impairment
charges related to the Company's long-lived assets as well as its
intangible assets, including the Avaya Trade Name and the goodwill
related to the Company's Services reporting unit. As a result of
the foregoing and other closing activities, the Company requires
additional time to complete its review of its financial statements
and other disclosures as of June 30, 2022 and Sept. 30, 2022, and
to complete its annual closing processes and controls, and is
unable to file its Annual Report on Form 10-K on or prior to the
prescribed due date of Nov. 29, 2022.
The Company does not currently anticipate that it will be able to
file the Form 10-K on or before the fifteenth calendar day
following the Nov. 29, 2022 prescribed filing date as a result of
the circumstances described above. The Company will seek to
resolve these issues as soon as practicable and plans to file the
Form 10-K as soon as possible.
Separately, each of the Company's term loan facility and ABL
facility contains a covenant that requires the Company's audited
financial statements be provided to the applicable lenders on or
before Dec. 29, 2022, which audited financial statements shall be
audited by an independent registered public accounting firm of
recognized national standing whose opinion shall not be qualified
as to the scope of audit or as to the status of the audit entity
and its consolidated subsidiaries as a going concern (other than an
exception with respect to a current maturity date of any
indebtedness or any actual or prospective default of a financial
maintenance covenant). The Company has 30 days to cure a failure
to deliver such compliant financial statements after receipt of
written notice from the administrative agent of the applicable
facility.
About Avaya Holdings
Avaya Holdings Corp. offers digital communications products,
solutions and services for businesses of all sizes delivering its
technology predominantly through software and services.
Avaya reported a net loss of $13 million for the year ended Sept.
30, 2021, a net loss of $680 million for the year ended Sept. 30,
2020, and a net loss of $671 million for the year ended Sept. 30,
2019.
* * *
As reported by the TCR on Aug. 15, 2022, S&P Global Ratings lowered
its issuer credit rating on Avaya Holdings Corp. to 'CCC-' from
'CCC'. The negative outlook reflects that S&P could lower its
rating on Avaya if it concludes a distressed restructuring or
payment default are a virtual certainty.
Also in August 2022, Moody's Investors Service downgraded the
Corporate Family Rating of Avaya Holdings Corp. to Caa2 from B3.
Moody's said Avaya's Caa2 CFR reflects the Company's unsustainably
high financial leverage, sustained cash burn, and increased near
term performance challenges that may worsen substantially as
customers reassess Avaya's financial standing.
AVAYA INC: DoubleLine ISF Values $3.1M Loan at 55% of Face
----------------------------------------------------------
DoubleLine Income Solutions Fund has marked its $3,118,910 loan
extended to Avaya, Inc., to market at $1,704,671, or 54.7% of the
outstanding amount, as of September 30, 2022, according to a
disclosure contained in DoubleLine ISF's Form N-CSR for the fiscal
year ended September 30, filed with the Securities and Exchange
Commission on December 2.
DoubleLine ISF extended a Senior Secured First Lien Term Loan (1
Month LIBOR USD + 4.25%) to Avaya, Inc. The loan currently has an
interest rate of 7.07% and is scheduled to mature on December 15,
2027.
DoubleLine Income Solutions Fund (NYSE: DSL) was formed as a
closed-end management investment company registered under the
Investment Company Act of 1940, as amended, and originally
classified as a non-diversified fund. The Fund is currently
operating as a diversified fund.
Avaya Holdings Corp., is an American multinational technology
company headquartered in Durham, North Carolina, that provides
cloud communications and workstream collaboration services.
AVE HOLDINGS III: Golub Values $1.48M Loan at 66% of Face
---------------------------------------------------------
Golub Capital BDC 3, Inc., has marked its $1,485,000 loan extended
to Ave Holdings III, Corp to market at $975,000, or 66% of the
outstanding amount, as of September 30, 2022, according to a
disclosure contained in Golub's Form 10-K filing for the year ended
September 30, 2022, filed with the Securities and Exchange
Commission on December 2.
Golub's One stop loan to Ave Holdings III, Corp charges 8.71% in
interest rate. The loan is scheduled to mature in February 2028.
Golub is a business development company formed in August 2017 to
make investments and generate current income and capital
appreciation by investing primarily in one stop loans (a loan that
combines characteristics of traditional first lien senior secured
loans and second lien or subordinated loans that are often referred
to by other middle market lenders as unitranche loans) and other
senior secured loans of U.S. middle-market companies that are, in
most cases, sponsored by private equity firms.
Ave Holdings III, Corp is in the Specialty Retail industry.
AVE HOLDINGS III: Golub Values $14,000 Loan at 71% of Face
----------------------------------------------------------
Golub Capital BDC 3, Inc., has marked its $14,000 loan extended to
Ave Holdings III, Corp, to market at $10,000, or 71% of the
outstanding amount, as of September 30, 2022, according to a
disclosure contained in Golub's Form 10-K filing for the year ended
September 30, 2022, filed with the Securities and Exchange
Commission on December 2.
Golub's One stop loan to Ave Holdings III charges 10.75% in
interest rate. The loan is scheduled to mature in February 2028.
Golub is a business development company formed in August 2017 to
make investments and generate current income and capital
appreciation by investing primarily in one stop loans (a loan that
combines characteristics of traditional first lien senior secured
loans and second lien or subordinated loans that are often referred
to by other middle market lenders as unitranche loans) and other
senior secured loans of U.S. middle-market companies that are, in
most cases, sponsored by private equity firms.
Ave Holdings III, Corp is in the Specialty Retail industry.
AVEANNA HEALTHCARE: DoubleLine ISF Values $7.8M Loan at 74% of Face
-------------------------------------------------------------------
DoubleLine Income Solutions Fund has marked its $7,855,000 loan
extended to Aveanna Healthcare LLC, to market at $5,812,700, or 74%
of the outstanding amount, as of September 30, 2022, according to a
disclosure contained in DoubleLine ISF's Form N-CSR for the fiscal
year ended September 30, 2022, filed with the Securities and
Exchange Commission on Dec. 2
DoubleLine ISF extended a Senior Secured Second Lien Term Loan (1
Month LIBOR USD + 7.00%, 0.50% Floor) to Aveanna Healthcare. The
loan currently has an interest rate of 10.05% and is scheduled to
mature on December 10, 2029.
DoubleLine Income Solutions Fund (NYSE: DSL) was formed as a
closed-end management investment company registered under the
Investment Company Act of 1940, as amended, and originally
classified as a non-diversified fund. The Fund is currently
operating as a diversified fund.
Aveanna Healthcare LLC provides health care services. The Company
offers pediatric skilled nursing, therapy, autism, enteral
nutrition, and adult services.
BJH HOLDINGS III.: Golub Values $35,000 Loan at 77% of Face
-----------------------------------------------------------
Golub Capital BDC 3, Inc., has marked its $35,000 loan extended to
BJH Holdings III Corp. to market at $27,000, or 77% of the
outstanding amount, as of September 30, 2022, according to a
disclosure contained in Golub's Form 10-K filing for the year ended
September 30, 2022, filed with the Securities and Exchange
Commission on December 2.
Golub's One stop loan to BJH Holdings III Corp. charges 7.59% in
interest rate. The loan is scheduled to mature in August 2025.
Golub is a business development company formed in August 2017 to
make investments and generate current income and capital
appreciation by investing primarily in one stop loans (a loan that
combines characteristics of traditional first lien senior secured
loans and second lien or subordinated loans that are often referred
to by other middle market lenders as unitranche loans) and other
senior secured loans of U.S. middle-market companies that are, in
most cases, sponsored by private equity firms.
BJH Holdings III Corp. owns and operates quick service
restaurants.
BVM THE BRIDGES: Court OKs Interim Cash Collateral Access
---------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida, Tampa
Division, authorized BVM The Bridges, LLC and BVM Coral Landing,
LLC to use cash collateral on an interim basis in accordance with
the budget.
The Debtor is permitted to use cash collateral to pay: (a) amounts
expressly authorized by the Court, including payments to the U.S.
Trustee for quarterly fees; (b) the current and necessary expenses
set forth in the budgets, plus an amount not be exceed 10% for each
line item; and (c) additional amounts as may be expressly approved
in writing by CPIF Lending, LLC and US Bank, National Association
and Pallardy, LLC (as to The Bridges only).
Each creditor or other party with a security interest or other
interest in the cash collateral will have a perfected post-petition
lien or interest against cash collateral to the same extent and
with the same validity and priority as its prepetition lien or
interest, without the need to file or execute any document as may
otherwise be required under applicable non bankruptcy law.
As adequate protection, the Debtors will provide the Secured
Creditors and Pallardy with a post-petition replacement lien or
interest in cash collateral equal in validity and dignity as it
existed pre-petition.
The Debtors will maintain insurance coverage for their property in
accordance with the obligations under the loan and security
documents with the Secured Creditors.
A continued preliminary hearing on the matter is scheduled for
January 18, 2023 at 11 a.m.
A copy of the order and the Debtors' three-month budgets is
available at https://bit.ly/3VGKN7A from PacerMonitor.com.
The Bridges projects $964,545 in total income and $970,942 in total
expenses for three months, from October to December.
About BVM The Bridges, LLC
BVM The Bridges, LLC operates an 87-bed/69-unit assisted living
facility known as The Bridges Assisted Living & Memory Care and The
Claridge House at the Bridges located at 11202 Dewhurst Drive in
Riverview, Florida, since 2014. The Debtor's average census is 70
residents.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 22-00345) on January 28,
2022. In the petition signed by John Bartle, president, the Debtor
disclosed up to $10 million in assets and up to $50 million in
liabilities.
Judge Michael J. Williamson oversees the case.
Alberto F. Gomez, Jr., Esq., at Johnson, Pope, Bokor, Ruppel &
Burns, LLP is the Debtor's counsel.
CARBON IQ: Case Summary & Eight Unsecured Creditors
---------------------------------------------------
Debtor: Carbon IQ, Inc.
d/b/a Rumby
1311 Vine Street #303
Cincinnati, OH 45202
Chapter 11 Petition Date: December 7, 2022
Court: United States Bankruptcy Court
Southern District of Ohio
Case No.: 22-12076
Debtor's Counsel: Eric W. Goering, Esq.
GOERING & GOERING
220 West Third Street
Cincinnati, OH 45202
Tel: (513) 621-0912
Email: eric@goering-law.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Nicholas DeLuca, Board Member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's eight unsecured creditors is available for
free at PacerMonitor.com at:
https://www.pacermonitor.com/view/IEZRYMQ/Carbon_IQ_Inc__ohsbke-22-12076__0001.0.pdf?mcid=tGE4TAMA
CELSIUS NETWORK: Taps Ernst & Young as Tax Services Provider
------------------------------------------------------------
Celsius Network, LLC and its affiliates seek approval from the U.S.
Bankruptcy Court for the Southern District of New York to hire
Ernst & Young, LLP.
The Debtors need the firm's services, which include:
A. Tax Compliance Services
a. prepare the U.S. federal income tax returns for Celsius
Network, Inc. and Celsius US Holding LLC and its US subsidiaries
for the year ended Dec. 31, 2021 and prepare the state and local
income and franchise tax returns for certain jurisdictions.
B. Tax Advisory Services
a. advise the Debtors' personnel in developing an
understanding of the tax issues and options related to the Debtors'
Chapter 11 filing, taking into account the Debtors' specific facts
and circumstances, for U.S. federal and state and local tax
purposes;
b. advise on the federal and state and local income and
indirect tax consequences of proposed plans of reorganization,
including, if necessary, assisting in the preparation of IRS ruling
requests regarding the tax consequences of alternative
reorganization structures and tax opinions;
c. understand and advise on the tax implications of
reorganization or restructuring alternatives the Debtors are
evaluating that may result in a change in the equity,
capitalization or ownership of the shares of the Debtors and the
respective assets;
d. gather information, prepare calculations, and apply the
appropriate federal and state and local tax law to historic
information regarding changes in the ownership of the Debtors'
stock to calculate whether any of the shifts in stock ownership may
have caused an ownership change that will restrict the use of tax
attributes (such as net operating losses, capital losses, credit
carry forwards, and built-in losses) and the amount of any such
limitation;
e. prepare calculations and apply the appropriate federal and
state and local tax law to determine the amount of tax attribute
reduction related to debt cancellation income and modeling of tax
consequences of such reduction;
f. If necessary, prepare or assist in tax basis balance sheets
and computations of stock basis as of certain relevant dates for
purposes of analyzing the tax consequences of alternative
reorganization structures;
g. analyze federal and state and local tax treatment of the
costs and fees incurred by the Debtors in connection with the
bankruptcy proceedings, including tax return disclosure and
presentation;
h. analyze federal and state and local tax treatment of
interest and financing costs related to debt subject to automatic
stay, and new debt incurred as the Debtors emerge from bankruptcy,
including tax return disclosure and presentation;
i. analyze federal and state and local tax consequences of
restructuring and rationalization of intercompany accounts, and
upon written request, analyze tax impacts of transfer pricing and
related cash management;
j. analyze federal and state and local tax consequences of
restructuring in the U.S. or internationally during bankruptcy,
including tax return disclosure and presentation;
k. analyze federal and state and local tax consequences of
potential bad debt and worthless stock deductions, including tax
return disclosure and presentation;
l. analyze federal and state and local tax consequences of
employee benefit plans, as requested in writing;
m. advise the Debtors' personnel on the bankruptcy tax process
and procedure lifecycle, the typical tax issues, options, and
opportunities related to a Chapter 11 filing, the typical impact of
a Chapter 11 filing on a corporate tax department's operations, and
best practices for addressing such impact areas while operating in
bankruptcy and the post-emergence period;
n. assist with various tax, compliance, tax account
registration/deregistration and/or audit issues arising in the
ordinary course of business while in bankruptcy, including but not
limited to: IRS or state and local income and indirect tax audit
defense, voluntary disclosure assistance or compliance questions,
notices or issues related to: federal, state and local
income/franchise tax, sales and use tax, excise tax, property tax,
employment tax, credit and incentive agreements and other
miscellaneous taxes or regulatory assessments and fees;
o. advise, as requested and as permissible, with determining
the validity and amount of bankruptcy tax claims or assessments,
including but not limited to the following types of taxes: income
taxes, franchise taxes, sales taxes, use taxes, employment taxes,
property taxes, severance taxes, excise taxes, credit and
incentive agreements, and other miscellaneous taxes or regulatory
assessments and fees;
p. scope, assist, and advise on the potential for seeking cash
tax refunds, including but not limited to the following types of
taxes: income taxes, franchise taxes, sales taxes, use taxes,
employment taxes, property taxes, tax credit and incentive
agreements and other miscellaneous taxes or regulatory assessments
and fees;
q. provide documentation, as appropriate or necessary, of tax
matters, of tax analysis, opinions, recommendations, conclusions
and correspondence for any proposed restructuring alternative,
bankruptcy tax issue, or other tax matter described above,
including as it relates to any historical transactions (e.g.,
acquisitions, mergers, dispositions, liquidations, or any
materially similar transactions, associated with the Debtors'
internal restructuring or otherwise); and
r. as requested, assist in remediating potential tax exposures
through voluntary disclosure programs.
The firm will be paid as follows:
a. A fixed fee of (a) $52,150 for compliance services for
Celsius Network Inc. for the period ended Dec. 31, 2021 and (b)
$52,850 for tax compliance services for Celsius US Holding and its
U.S. subsidiaries for the period ended Dec 31, 2021.
b. Provision of the tax advisory services will be billed based
on Ernst & Young's hourly rates, as follows:
Partner/Principal $1,250
Executive Director $1,150
Senior Manager $950
Manager $850
Senior $600
Staff $400
As disclosed in court filings, Ernst & Young is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Elizabeth Harvey
Ernst & Young, LLP
One Manhattan West, 401 9th Avenue,
New York, NY 10001
Phone: +1 212 773 3000
About Celsius Network
Celsius Network LLC -- http://www.celsius.network/-- is a
financial services company that generates revenue through
cryptocurrency trading, lending, and borrowing, as well as by
engaging in proprietary trading.
Celsius helps over a million customers worldwide to find the path
towards financial independence through a compounding yield service
and instant low-cost loans accessible via a web and mobile app.
Celsius has a blockchain-based fee-free platform where membership
provides access to curated financial services that are not
available through traditional financial institutions.
The Celsius Wallet claims to be one of the only online crypto
wallets designed to allow members to use coins as collateral to
get
a loan in dollars, and in the future, to lend their crypto to earn
interest on deposited coins (when they're lent out).
Crypto lenders such as Celsius boomed during the COVID-19 pandemic,
drawing depositors with high interest rates and easy access to
loans rarely offered by traditional banks. But the lenders'
business model came under scrutiny after a sharp sell-off in the
crypto market spurred by the collapse of major tokens terraUSD and
luna in May 2022.
New Jersey-based Celsius froze withdrawals in June 2022, citing
"extreme" market conditions, cutting off access to savings for
individual investors and sending tremors through the crypto
market.
The list of major crypto firms that have filed for bankruptcy
protection in 2022 now includes Celsius Network, Three Arrows
Capital and Voyager Digital.
Celsius Network, LLC and its subsidiaries sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case
No.22-10964) on July 14, 2022. In the petition filed by CEO Alex
Mashinsky, the Debtors estimated assets and liabilities between $1
billion and $10 billion.
The Debtors tapped Kirkland & Ellis, LLP and Kirkland & Ellis
International, LLP as legal counsels; Centerview Partners, LLC as
investment banker; and Alvarez & Marsal North America, LLC as
financial advisor. Stretto, the claims agent and administrative
advisor, maintains the page https://cases.stretto.com/celsius
On July 27, 2022, the U.S. Trustee appointed an official committee
of unsecured creditors. The committee tapped White & Case, LLP as
its bankruptcy counsel; Elementus Inc. as its blockchain forensics
advisor; M3 Advisory Partners, LP as its financial advisor; and
Perella Weinberg Partners, LP as its investment banker.
Shoba Pillay, Esq., is the examiner appointed in the Debtors'
Chapter 11 cases. Jenner & Block, LLP and Huron Consulting
Services, LLC serve as the examiner's legal counsel and financial
advisor, respectively.
CHASE INDUSTRIES: Golub Values $1.95M Loan at 82% of Face
---------------------------------------------------------
Golub Capital BDC 3, Inc., has marked its $1,955,000 loan extended
to Chase Industries, Inc. to market at $1,598,000, or 82% of the
outstanding amount, as of September 30, 2022, according to a
disclosure contained in Golub's Form 10-K filing for the year ended
September 30, 2022, filed with the Securities and Exchange
Commission on December 2.
Golub's Senior loan to Chase Industries charges 9.88% in interest
rate. The loan is scheduled to mature in May 2025. The Loan was
on non-accrual status as of September 30, 2022, meaning that the
Company has ceased recognizing interest income on the loan.
Golub is a business development company formed in August 2017 to
make investments and generate current income and capital
appreciation by investing primarily in one stop loans (a loan that
combines characteristics of traditional first lien senior secured
loans and second lien or subordinated loans that are often referred
to by other middle market lenders as unitranche loans) and other
senior secured loans of U.S. middle-market companies that are, in
most cases, sponsored by private equity firms.
Chase Industries, Inc., doing business as Chase Doors, manufactures
and distributes building products.
CHASE INDUSTRIES: Golub Values $174,000 Loan at 80% of Face
-----------------------------------------------------------
Golub Capital BDC 3, Inc., has marked its $174,000 loan extended to
Chase Industries, Inc. to market at $140,000, or 80% of the
outstanding amount, as of September 30, 2022, according to a
disclosure contained in Golub's Form 10-K filing for the year ended
September 30, 2022, filed with the Securities and Exchange
Commission on December 2.
Golub's Senior loan to Chase Industries charges 9.80% in interest
rate. The loan is scheduled to mature in May 2025. The Loan was
on non-accrual status as of September 30, 2022, meaning that the
Company has ceased recognizing interest income on the loan.
Golub is a business development company formed in August 2017 to
make investments and generate current income and capital
appreciation by investing primarily in one stop loans (a loan that
combines characteristics of traditional first lien senior secured
loans and second lien or subordinated loans that are often referred
to by other middle market lenders as unitranche loans) and other
senior secured loans of U.S. middle-market companies that are, in
most cases, sponsored by private equity firms.
Chase Industries, Inc., doing business as Chase Doors, manufactures
and distributes building products.
CHASE INDUSTRIES: Golub Values $338,000 Loan at 82% of Face
-----------------------------------------------------------
Golub Capital BDC 3, Inc., has marked its $338,000 loan extended to
Chase Industries, Inc. to market at $277,000, or 82% of the
outstanding amount, as of September 30, 2022, according to a
disclosure contained in Golub's Form 10-K filing for the year ended
September 30, 2022, filed with the Securities and Exchange
Commission on December 2.
Golub's Senior loan to Chase Industries charges 10.67% in interest
rate. The loan is scheduled to mature in May 2025. The Loan was
on non-accrual status as of September 30, 2022, meaning that the
Company has ceased recognizing interest income on the loan.
Golub is a business development company formed in August 2017 to
make investments and generate current income and capital
appreciation by investing primarily in one stop loans (a loan that
combines characteristics of traditional first lien senior secured
loans and second lien or subordinated loans that are often referred
to by other middle market lenders as unitranche loans) and other
senior secured loans of U.S. middle-market companies that are, in
most cases, sponsored by private equity firms.
Chase Industries, Inc., doing business as Chase Doors, manufactures
and distributes building products.
CITIUS PHARMACEUTICALS: FDA Accepts Application of Denileukin
-------------------------------------------------------------
Citius Pharmaceuticals, Inc. said the U.S. Food and Drug
Administration has accepted the Company's Biologics License
Application (BLA) for denileukin diftitox ("I/ONTAK" or "E7777"),
an engineered IL-2-diphtheria toxin fusion protein for the
treatment of patients with persistent or recurrent cutaneous T-cell
lymphoma (CTCL). I/ONTAK is a purified and more bioactive
formulation of previously FDA-approved ONTAK. The PDUFA target
action date is Sept. 28, 2023. The BLA is supported by a pivotal
Phase 3 study (NCT01871727).
"The acceptance of the previously announced BLA submission for
I/ONTAK is another important regulatory milestone for our oncology
program. With an anticipated PDUFA date of September 28, 2023, we
look forward to the potential approval of this therapeutic for
patients with persistent or recurrent cutaneous T-cell lymphoma, a
rare disease for which patients with advanced disease have limited
treatment options," stated Leonard Mazur, Chairman and CEO of
Citius.
About Citius
Headquartered in Cranford, NJ, Citius Pharmaceuticals, Inc. --
http://www.citiuspharma.com-- is a specialty pharmaceutical
company dedicated to the development and commercialization of
critical care products targeting unmet needs with a focus on
anti-infectives, cancer care and unique prescription products.
Citius reported a net loss of $23.05 million for the year ended
Sept. 30, 2021, a net loss of $17.55 million for the year ended
Sept. 30, 2020, a net loss of $15.56 million for the year ended
Sept. 30, 2019, a net loss of $12.54 million for the year ended
Sept. 30, 2018, and a net loss of $10.38 million for the year ended
Sept. 30, 2017. As of June 30, 2022, the Company had $120.31
million in total assets, $9.98 million in total liabilities, and
$110.33 million in total equity.
CLOUD MOUNTAIN: Unsecured Creditors to be Paid in Full over 5 Years
-------------------------------------------------------------------
Cloud Mountain, Inc., filed with the U.S. Bankruptcy Court for the
Central District of California an Amended Plan of Reorganization
for Small Business dated December 1, 2022.
The Debtor was formed in 2016 and is owned 100% by its Chief
Executive Officer, Hanbing Shi. The Debtor is a wholesaler that
specializes in indoor and outdoor furniture and Outdoor shades
("Business").
As the Debtor was dealing with these economic issues, it fell
behind on its rent. On January 21, 2022, 500 Warner Avenue, LLC
("Prior Landlord"), the Debtor's landlord, filed a complaint
against the Debtor for unlawful detainer, commencing case no. 30
2022- 01241850-CU-UD-CJC (the "Unlawful Detainer Action"). The
Debtor also found that it was having problems with its former
operations manager and warehouse manager, both of whom have now
been replaced.
This Plan is a reorganizing plan. All allowed claims will be paid
from cash on hand as of the Effective Date and revenues generated
by the Debtor's ongoing business. Allowed administrative claims
will be paid in full on the Effective Date. Allowed priority tax
claims will be paid in full over 5 years from the Petition Date,
plus applicable interest. Payments will be made to allowed priority
tax claims quarterly beginning the first full quarter after the
Effective Date.
Allowed general unsecured claims will be paid in full over 5 years.
Payments will be made to allowed general unsecured claims quarterly
beginning the first full quarter after the Effective Date. To the
extent that a claim is disputed, the claim will not be paid unless
and until a final non-appealable order is entered allowing the
claim.
Since the filing, the Debtor has continued to focus on its sales.
The Debtor has replaced employees with others that have more
experience and are assisting in correcting any issues caused by
former employees. The Debtor has not suffered any losses as it did
pre-petition in dealings with companies it no longer associates
with.
The Debtor has been performing well during the course of this Case
and will be able to pay all creditors in full through the Debtor's
cash on hand and revenues generated from the Business.
Class 2 consists of General Unsecured Claims. Allowed general
unsecured claims will be paid in full over the course of 5 years.
Class 2 claimants will receive quarterly payments beginning the
first full quarter after the Effective Date. The Reorganized Debtor
shall have the right to pay the allowed claims in Class 2 in full
at any time without premium or penalty of any kind. The allowed
unsecured claims total $3,382,683.18.
All current interest holders will retain their percentage equity
membership in the Debtor that they held as of the Petition Date.
The Debtor's projections demonstrate that through cash on hand and
revenues to be generated over the life of the Plan, the Debtor will
have the ability to make the payments due on the Effective Date,
the payments to priority tax holders over 5 years from the Petition
Date, and the payments to Class 2 holders over the course of 5
years. These projections are based upon the historical revenue and
expenses of the Business, the actual revenue and expenses incurred
during the course of the Case, and anticipated growth over the next
5 years.
A full-text copy of the Amended Plan dated December 1, 2022, is
available at https://bit.ly/3P4lrhD from PacerMonitor.com at no
charge.
Attorneys for Debtor:
Beth E. Gaschen, Esq.
David M. Goodrich, Esq.
Golden Goodrich, LLP
650 Town Center Drive, Suite 600
Costa Mesa, CA 92626
Tel: (714) 966-1000
Facsimile: (714) 966-1002
Email: bgaschen@wgllp.com
About Cloud Mountain
Cloud Mountain, Inc., a California corporation, is a merchant
wholesaler of furniture and home furnishing products. The company
is based in Santa Ana, Calif.
Cloud Mountain filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. C.D. Calif. Case No. 22-10442) on March
17, 2022, listing as much as $10 million in both assets and
liabilities. Mark M. Sharf serves as Subchapter V trustee.
Judge Theodor Albert presides over the case.
Beth E. Gaschen, Esq., at Weiland Golden Goodrich, LLP represents
the Debtor as legal counsel.
CONNECTICUT RESTORATION: Seeks to Tap Grafstein & Arcaro as Counsel
-------------------------------------------------------------------
Connecticut Restoration Specialist, LLC seeks approval from the
U.S. Bankruptcy Court for the District of Connecticut to employ
Grafstein & Arcaro, LLC as its counsel.
The firm will render these legal services:
(a) advise the Debtor regarding its rights, duties, and powers
in the operation and management of its business and property;
(b) advise and assist the Debtor with respect to financial
agreements, debt restructuring, cash collateral orders, and other
financial transactions;
(c) review and advise the Debtor regarding the validity liens
asserted against the Debtor's property;
(d) advise the Debtor as to actions to collect and recover
property for the benefit of the Debtor's estate;
(e) prepare legal papers;
(f) advise the Debtor in connection with all aspects of a plan
of reorganization and related documents; and
(g) perform all other legal services for the Debtor which may
be necessary in this Chapter 11 case.
The hourly rates of the firm's counsel and staff are as follows:
Attorneys $400
Staff $100
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a retainer in the amount of $10,000.
Gregory Arcaro, Esq., an attorney at Grafstein & Arcaro, 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:
Gregory F. Arcaro, Esq.
Grafstein & Arcaro, LLC
1 Regency Drive, Suite 200B
Bloomfield, CT 06002
Telephone: (860) 242-0574
Facsimile: (860) 676-9168
Email: garcaro@grafsteinlaw.com
About Connecticut Restoration Specialist
Connecticut Restoration Specialist, LLC filed a petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. D. Conn. Case No.
22-20823) on Nov. 22, 2022, with up to $10 million in both assets
and liabilities. Bret W. Hallenbeck, member, signed the petition.
Judge James J. Tancredi oversees the case.
Gregory F. Arcaro, Esq., at Grafstein & Arcaro, LLC serves as the
Debtor's counsel.
CORE SCIENTIFIC: Faces Suit for Improper Disclosure of Financials
-----------------------------------------------------------------
Tim Hakki of Decrypt reports that bitcoin miner Core Scientific was
hit with a lawsuit after it failed to disclose a series of adverse
financial circumstances in its statements to shareholders this
2022.
Plaintiff and shareholder Mei Pang alleges that the company
knowingly provided false information to its shareholders throughout
the period starting March 3, 2022 and ending October 28, 2022.
On March 3, investigative investment research firm Culper Research
published a report revealing that Core had "overstated its
profitability" and had entered a dispute with Bitcoin miner
Gryphon, Core's largest client. Gryphon lacked the money to buy
the necessary mining rigs for Core Scientific to host at its data
center. On the same day the report was published, Core
Scientific's stock price swiftly dropped 9.4%, or $0.72, to close
at $6.98.
More revelations emerged in 2022, including a dispute with the
now-bankrupt crypto lender Celsius that sparked litigation on
September 28, 2022.
Celsius claimed that Core Scientific, which uses its data center to
host clients setting up mining operations, delayed rigs deployment
that Celsius had delivered to it, and supplied less power to the
rigs it deployed than required under the terms of the contract.
Celsius also claimed Core levied an improper surcharge on it to
pass the buck in the face of mounting energy costs.
Core Scientific did eventually disclose on October 27, 2022 that
something was up: "given the uncertainty regarding the Company's
financial condition, substantial doubt exists about the Company's
ability to continue as a going concern." The same day of the
bankruptcy warning, the company's stock price fell 78.1% to $0.789
and closed at $0.221 per share.
Many crypto miners have been struggling to stay afloat amid a
bearish climate and rising energy prices.
About Core Scientific
Core Scientific, Inc. (NASDAQ: CORZ) is a large-scale operator of
dedicated, purpose-built facilities for digital asset mining
colocation services and a provider of blockchain infrastructure,
software solutions and services. Core mines Bitcoin, Ethereum and
other digital assets for third-party hosting customers and for its
own account at its six fully operational data centers in North
Carolina (2), Georgia (2), North Dakota (1) and Kentucky (1).
Core was formed following a business combination in July 2021 with
XPDI, a blank check company.
At Sept. 30, 2022, the Company had total assets of US$1.4 billion
and total liabilities of US$1.3 billion.
Core Scientific did not make payments that came due in late October
and early November 2022 with respect to several of its equipment
and other financings, including its two bridge promissory notes.
The Company hired Weil, Gotshal & Manges LLP, as legal advisers,
and PJT Partners LP, as financial advisers, to assist the Company
in analyzing and evaluating potential strategic alternatives and
initiatives to improve liquidity.
Meanwhile, a group of Core Scientific convertible bondholders is
working with restructuring lawyers at Paul Hastings.
CREDIT SUISSE: Next Round of Job Cuts Set to Start
--------------------------------------------------
Sarah Butcher of eFinancialCareers.com reports that Monday 12th
December has apparently been tabled as the start of the next round
of layoffs at Credit Suisse.
Credit Suisse in October announced that as part of its
restructuring, it planned to cut 2,700 people before Christmas and
9,000 people by 2025.
So far, the cuts seem to have focused on areas like European credit
sales and trading. Bloomberg reported last week that Credit Suisse
was thinking of cutting a third of its fixed income sales jobs
globally.
According to Butcher's report, the next round of cuts may impact
areas like investment grade sales and trading, which has so far
been comparatively untouched. People in areas like the structured
products group (SPG), which is being moved to Apollo are also
concerned, however.
In mid-November, Jay Kim, Credit Suisse's global head of
securitized products trading, sent an email to staff in the group
explaining that the situation remains uncertain. In the email,
seen by eFinancialCareers, Kim says it had been "an unbelievably
difficult situation" for everyone involved and that his personal
involvement in the Apollo deal was "peripheral", with negotiations
occurring instead between Apollo and "corporate development and
risk," at Credit Suisse.
The historical model of securitized products within investment
banking is "under real and tremendous threat," said Kim, adding
that although the Apollo deal will be a "massive and unbelievable
win" for everyone, it's also an "incredibly difficult and
challenging period of uncertainty," while it's finalized. However,
this isn't expected to happen until early 2023, and CS has already
indicated that not everyone in the current group will be needed.
Insiders in the SPG say the fear is that all the securitized
products salespeople, traders and structurers will be let go.
"Apollo only want the securitized product assets that CS has now
and the pipeline to those future assets," claims one insider.
In an investor call last month, Apollo said its approach to the
securitization business is very different to banks' approach: "For
the most part, a bank wants the client, they can sell the client
payments and FX, hedging and M&A and equity and a whole range of
services that we and our peers are not really equipped, nor do I
believe we will be equipped to offer. What we want is the
asset..."
About Credit Suisse Group AG
Credit Suisse, together with its subsidiaries, provides various
financial services in Switzerland, Europe, the Middle East, Africa,
the Americas, and Asia Pacific. The Company offers private banking
and wealth management solutions, including advisory, investment,
financial planning, succession planning, and trust services; and
financing and lending, and multi-shore platform solutions.
In recent years, Credit Suisse has suffered a number of scandals,
including having lots of exposure to funds like Archegos Capital
and Greensill Capital, both of which collapsed. The bank took a
$5.5 billion loss from Archegos and a roughly $1.7 billion loss
from Greensill.
Credit Suisse commanded more than $78 billion in market value in
2009, but the stock has sunk to record lows and has been trading at
about only a quarter of its tangible book value.
Credit Suisse's investment bank suffered a loss of 3.7 billion
Swiss francs in 2021 and backed that up with a 992 million Swiss
franc loss in the first half of 2022.
In July 2022, Credit Suisse announced its second strategy review in
a year and replaced its chief executive, bringing in restructuring
expert Ulrich Koerner to prune its investment banking arm and cut
more than US$1 billion in costs.
Following a third-quarter loss of 4 billion Swiss francs, Credit
Suisse in late October 2022 revealed its plan to spin out its
capital markets and advisory business under a radical
restructuring. The bank, which employs more than 50,000 people,
said it would cut about 9,000 jobs by the end of 2025.
In November, Credit Suisse announced that Apollo Global Management
Inc. agreed to acquire Sector Financial Inc. as part of its
purchase of part of Credit Suisse Group AG's securitized products
group. The transaction will reduce SPG assets from $75 billion to
approximately $20 billion by the middle of 2023.
CREDITO REAL: Said to be in Talks With Bondholders
--------------------------------------------------
Reuters reported that troubled Mexican non-bank lender Credito Real
(CREAL.MX) is in negotiations with foreign bondholders, prompting
creditors to delay their request for an involuntary U.S. bankruptcy
hearing, according to two sources close to the matter.
Credito Real collapsed after defaulting a 170 million Swiss franc
($176 million) bond in February 2022, prompting bonds to shed 99%
of their value.
The negotiations centered on the establishment of assets the
company still had left and are viable for recovery, giving a rare
chance for transparency, one source directly involved told Reuters
Wednesday, November 16, 2022.
The person added that while the talks did not constitute
negotiations yet, there was chance they could develop into them.
"It's a first step (to a deal)," the person said, noting that the
bankruptcy proceedings in a Delaware court -- originally scheduled
for early October - would depend on the outcome of the talks.
Credito Real said it opposes entering Chapter 11 proceedings, which
would force the company out of the Mexican jurisdiction where its
liquidation has been centered so far.
That process has seen the company settle its debts with local banks
first.
Foreign bond holders have appealed and are weighing further legal
action in Mexico to recoup losses.
Large groups like British asset manager Abrdn and Los Angeles-based
DoubleLine Capital are among those who hold bonds in the company,
according to Refinitiv data.
Bondholders face an uphill struggle as the most exposed unsecured
creditor group.
The default by Credito Real, along with AlphaCredit and Unifin
(UNIFINA.MX), have made banks less willing to finance non-bank
lenders, analysts say, prompting fears about the non-bank sector in
Mexico.
About Credito Real SAB
Credito Real SAB de CV SOFOM ENR is a Mexico-based company that
provides consumer financing. Credito is Mexico's biggest payroll
lender and second largest non-bank lender after Real Unifin.
Credito Real provides loans, either by providing direct financing
to consumers or by establishing financing programs with consumer
financing dealers that sell to Credito Real the collection rights
from consumer financing products. It also provides financing
directly to individuals that are employed by corporations with
payroll deduction agreements with consumer financing dealers
authorized by Credito Real. Credito Real operates through a number
of subsidiaries, including AFS Acceptance LLC.
Three alleged creditors signed a petition to send Credito Real to
Chapter 11 bankruptcy on June 22, 2022 (Bankr. S.D.N.Y. Case No.
22-10842). Institutional Multiple Investment Fund LLC, of Boston,
Massachusetts; Banco Monex, S.A., of Mexico, and Solitaire Fund, of
Liechtenstein, who claim to own an aggregate $8 million of
unsecured bond debt, signed the involuntary Chapter 11 petition.
David H. Botter, Esq., at Akin Gump Strauss Hauer & Feld LLP is
advising the three bondholders.
Despite efforts by bondholders to force the company to pursue a
Chapter 11 restructuring in the U.S., the Debtor opted to pursue
proceedings in Mexico instead. On June 28, 2022, Angel Francisco
Romanos Berrondo, one of the Debtor's shareholders and the former
CEO of Credito Real, filed a petition, in his capacity as a
shareholder, with the Mexican Court seeking to commence the Mexican
Liquidation Proceeding.
On June 30, 2022, the Mexican Court entered an order commencing the
dissolution and liquidation proceedings for the Company and
appointing Mr. Fernando Alonso-de-Florida Rivero as the Mexican
Liquidator.
The liquidator for Credito Real filed a Chapter 15 bankruptcy
petition (Bankr. D. Del. Case No. 22-10630) on July 14, 2022, to
seek U.S. recognition of the Mexican proceedings. The petition was
signed by Robert Wagstaff, the foreign representative of the
liquidator. Richards, Layton & Finger, P.A., led by John Henry
Knight, is counsel in the U.S. case.
CSC HOLDINGS: S&P Assigns 'B+' Rating on New Term Loan Due 2028
---------------------------------------------------------------
S&P Global Ratings assigned a 'B+' issue-level rating to Altice
USA's proposed term loan due 2028 issued via CSC Holdings LLC. The
recovery rating is '3' indicating expectations for meaningful
recovery (50%-70%; 65% rounded estimate). The company plans to
amend and extend maturities on its existing term loan B due July
2025 and term loan B-3 due January 2026, which currently carry an
interest rate of LIBOR+225. The new facility will mature in 2028,
with a springing maturity to April 2027, if the company does not
refinance the $2.9 billion term loan B-5 and $1.3 billion 5.5%
guaranteed notes (both due April 2027) at maturity.
S&P said, "There is no impact to our existing ratings, as this is a
leverage-neutral transaction. We continue to expect debt to EBITDA
to remain in the low-6x area through 2024. We believe the new
facility will carry a higher spread than the existing term loans,
resulting in an increase of roughly $40 million in annual interest
expense. Still, we project that Altice USA will generate about $200
million-$400 million in free operating cash flow (FOCF) per year in
2023 and 2024 before gradually rising above $1 billion per year as
peak capital spending winds down. Furthermore, we view this as
prudent liability management by smoothing medium-term maturities."
Assuming it extends roughly 50% of maturities, the need to access
external capital markets would be significantly lower until 2027
(from 2025). The company currently has the following maturities and
projected FOCF (in addition to liquidity provided by $250 million
of cash and about $1 billion available under the 2027 revolver as
of Sept. 30, 2022):
Maturities:
2023: 0
2024: $750 million
2025: $2.8 billion
2026: $1.2 billion
FOCF:
2023: $200 million-$400 million
2024: $200 million-$400 million
2025: $800 million-$1 billion
2026: $1.2 billion- $1.4 billion
DIOCESE OF ROCHESTER: Bankruptcy Plan Could Set Template for Others
-------------------------------------------------------------------
Jay Tokasz of The Buffalo News reports that the Diocese of
Rochester's novel tactic to exit Chapter 11 bankruptcy by making a
$55 million payment to childhood sex abuse survivors and allowing
them to sue the diocese's insurers for additional damages give
template for other bankrupt dioceses in New York, like Buffalo,
according to legal experts.
Across the country, insurance contributions have been a backbone of
majority of diocese bankruptcy settlement plans over the past
decade, with insurance companies paying hundreds of millions of
dollars to prevent sex abuse cases litigation.
However, Rochester Diocese earlier in November 2022 worked out a
settlement plan with sex abuse claimants that excludes contribution
from insurance companies. Instead, it will convey its coverage
rights to a settlement trust on behalf of 475 sex abuse claimants,
together with $55 million in diocese and parish funds. In exchange,
the diocese and its parishes and schools will no need to defend
against Child Victims Act lawsuits claiming sex abuse involving
priests and other employees.
The trust, utilizing the diocese's assigned insurance policies,
will be able to sue insurance companies to collect on those
policies in abuse cases where it was clear there was coverage,
legal experts said.
The plan came three years after the Rochester Diocese filed for
bankruptcy protection, and subject for approval of U.S. Bankruptcy
Judge Paul R. Warren.
Legal experts said that once Warren confirms the plan, it pave the
way for future settlements between sex abuse claimants and other
New York dioceses seeking to exit from bankruptcy proceedings.
"Everybody was waiting for Rochester to resolve," said attorney
Leander James, who has represented abuse claimants in numerous
diocese and Catholic entity bankruptcies. "For whatever reason,
Rochester was at the tip of the spear, and that tip of the spear
had to be buried before the rest of the shaft would follow. And I
think we're going to see that now. We're going to see these other
dioceses work towards resolution."
A Buffalo Diocese spokesman said that the circumstances of each
diocese Chapter 11 case are unique, and "the most appropriate means
for resolving one case may or may not be applicable to the
circumstances of a different case."
The diocese remains "committed to exploring reasonable alternatives
through negotiation that will permit us to provide a fair and
equitable distribution to claimants in our Chapter 11 case and
emerge from Chapter 11 and continue the mission of the Catholic
Church in Western New York," said Joseph Martone, the spokesman.
With about 900 claims against it -- nearly double the number of
claims filed in Rochester – the Buffalo Diocese likely will face
pressure from claimants to pay more.
Insurance companies may balk
Confirmation of the Rochester plan is still months away, and
insurance companies are likely to object to it, as they have done
in recent settlements of bankruptcy cases for the Boy Scouts of
America and the Diocese of Camden, N.J., where the debtors took a
similar tack as in Rochester to forge a deal with abuse claimants.
While some insurers participated in the Boy Scout plan, a large
group of insurance firms did not. Last week, they appealed the
confirmation, arguing that the plan points "an 82,000-claim bazooka
at insurers" and was negotiated in bad faith. Insurance companies
in court papers said lawyers sought a "multi-billion-dollar payday
for themselves" by drumming up business through a massive
advertising campaign and soliciting a "significant portion" of
claims that, likely, were fraudulent.
The appealing insurers argued that the Boy Scouts assigning of
insurance rights to a settlement trust violates the insurance
contracts and doesn't allow for insurers to conduct a proper
defense against abuse claims.
Marie T. Reilly, a bankruptcy expert and law professor at
Pennsylvania State University who has studied Catholic diocese
bankruptcy cases for years, said a decision on the Boy Scout appeal
may help guide how bankruptcy courts view insurance policy
assignments going forward.
"Their argument puts pressure on whether a bankruptcy court really
has power to confirm a plan that effectively strips insurance
companies of their contractual rights without their consent,"
Reilly said.
About The Diocese of Rochester
The Diocese of Rochester in upstate New York provides support to 86
Roman catholic parishes across 12 counties in upstate New York. It
also operates a middle school, Siena Catholic Academy. The diocese
has 86 full-time employees and six part-time employees and provides
medical and dental benefits to an additional 68 retired priests and
two former priests.
The diocese generated $21.88 million of gross revenue for the
fiscal year ending June 30, 2019, compared with a gross revenue of
$24.25 million in fiscal year 2018.
The Diocese of Rochester filed for Chapter 11 bankruptcy protection
(Bankr. W.D.N.Y. Case No. 19-20905) on Sept. 12, 2019, amid a wave
of lawsuits over alleged sexual abuse of children. In the
petition, the diocese was estimated to have $50 million to $100
million in assets and at least $100 million in liabilities.
Bond, Schoenec & King, PLLC and Bonadio & Co. serve as the
diocese's legal counsel and accountant, respectively. Stretto is
the claims and noticing agent.
The U.S. Trustee for Region 2 appointed an official committee of
unsecured creditors in the diocese's Chapter 11 case. Pachulski
Stang Ziehl & Jones, LLP and Berkeley Research Group, LLC serve as
the committee's legal counsel and financial advisor, respectively.
DIOCESE OF ROCHESTER: Dioceses' Deals Spurn Insurance Companies
---------------------------------------------------------------
James Nani and Alex Wolf of Bloomberg Law report that bankrupt
Catholic dioceses are buckling to child sex abuse victims' payout
demands by offering them valuable rights to directly sue church
insurers, riling up questions about the legality of such deals.
Catholic dioceses in the last 20 years have struck about two dozen
victim settlements with their insurers' cooperation in an effort to
exit bankruptcy proceedings. But growing disputes over the value
and validity of many legacy sex abuse claims have created a rift
among the parties.
The rift has forced some dioceses to negotiate with either victims
or insurers instead of both, together. As a result, the dioceses'
insurers could be forced to shell out far more to sex abuse victims
than they believe should be on the hook for.
In two large cases this year, Catholic bishops have abandoned
settlements with insurance companies when abuse survivors rejected
the financial terms. In stunning reversals, the dioceses in
Rochester, New York and Camden, New Jersey cut new agreements with
victim groups, offering cash and valuable insurance rights, instead
of a lump sum payment that includes contributions from church
coffers and insurers.
The dioceses "realized they're better off making peace with the
survivors than fighting them," said abuse victims' attorney Jeff
Anderson of Jeff Anderson & Associates PA.
Insurers are waging fierce legal battles over what they say is a
violation of their contract rights. But victims' attorneys believe
the settlement technique is supported by the law and could show
other dioceses how to expedite bankruptcies when insurance
companies refuse to budge.
"I wouldn't be surprised if some of the other cases that have been
pending or are stalled go down the same road," said Jeffrey Prol of
Lowenstein Sandler LLP, a lawyer for the Camden diocese
claimants’ committee. "The diocese finally comes around because
they want to get out of bankruptcy and get on with their lives."
Diocese Pressure
Catholic churches and institutions like the Boy Scouts of America
have come under increasing pressure to strike settlements with
abuse victims to wrap up prolonged and costly bankruptcy cases.
Some states have passed laws allowing victims of child sex abuse
from decades past to file previously time-barred lawsuits. A surge
of abuse lawsuits has overwhelmed Catholic dioceses in those
states, and many of them have sought bankruptcy protection.
The Camden diocese, which serves roughly 486,000 Catholics in the
state, filed for Chapter 11 in October 2020. It faces more than 300
claims of sex abuse.
The Camden diocese's first reorganization plan proposed paying
survivors $90 million -- including $30 million from insurers -- and
faced strong opposition from victims. In April 2022, the diocese
then announced a new deal with the victims committee whereby the
diocese and parishes would pony up $87.5 million and allow the
victims to sue insurers directly. The revised plan is currently
being litigated in a bankruptcy court trial.
The Rochester diocese had a deal in which its insurers had agreed
to contribute nearly $108 million to a victim payout trust. But the
diocese similarly shifted strategy after the victims won approval
to resume litigation against its parishes, which are not in
bankruptcy. Under a new agreement, the diocese and its parishes
will contribute $55 million and rights to sue insurers into a
settlement fund.
The Rochester diocese, which serves about 300,000 Catholics and
includes more than 80 parishes, filed for bankruptcy in September
2019.
The court's decision to let victims pursue affiliated church
entities squeezed the diocese, which is trying to secure liability
releases for its affiliated entities in its bankruptcy case. Under
existing law in New York and New Jersey's bankruptcy courts,
obtaining third-party liability releases is difficult without
substantial support from creditors.
Bankruptcy-related costs to the dioceses and its non-bankrupt
parishes have risen, increasing pressure to bring an end to
prolonged cases. The Rochester diocese has spent more than $12
million in bankruptcy, while the Camden diocese says its costs are
close to $20 million.
Victims Emboldened
In the past, survivors may have been more inclined to settle
privately with Catholic entities to avoid exposure butt recognition
of such claims has shifted, Prol said. The gap between insurers'
offers and victims' demands also widened.
The Rochester diocese's previous deal with its insurers wasn't
"anywhere close" to acceptable, said Ilan Scharf of Pachulski Stang
Ziehl & Jones LLP, an attorney representing claimants in the
Rochester case.
"Frankly, the Diocese of Rochester has insurance that goes back to
the 1950s. It’s good insurance," Scharf said.
Insurance companies that are being pulled into the diocese
bankruptcy proceedings have been hoping for a discount through
bankruptcy "that is well below what they can pay," said Alexandria
MacMaster, an attorney with Laffey Bucci & Kent LLP who represents
a victim and committee member in the Camden case.
But there has been a shift in the power dynamic, MacMaster said.
The dynamic puts insurers at risk while providing a "win-win" for
the dioceses that get to end their bankruptcy and abuse survivors
who retain their claims, said abuse victim attorney Adam D.
Horowitz of Horowitz Law.
"It really puts pressure on the insurance companies now to come to
the negotiating table or else they are on an island as the only
remaining target for the abuse survivors," Horowitz said. "It's a
signal to insurance companies that they better negotiate fairly or
they will be left to fend for themselves."
Insurers Fight Back
Insurers have pushed back against the Camden diocese's pivot. Their
objections mirror those made by insurers against a similar
arrangement in the Boy Scouts of America's recent bankruptcy case,
which was also spurred by widespread sex abuse allegations.
Century Indemnity Co., a subsidiary of Chubb Ltd. that provided
coverage to the Boy Scouts and the Camden diocese, said in an
August filing that many of the 324 claims in the Camden case are
"facially suspect" or "patently lack merit."
Century and other insurers also raised complaints over a
"staggering explosion" of claims in the Boy Scouts case. "Invalid
and fraudulent claims" contributed to a 55-fold increase in abuse
allegations after the case began in 2020, the insurers said.
Since the Camden diocese's settlement with the victims, Century
said the diocese has "walked away from its responsibility to defend
against meritless claims."
Chubb eventually agreed to pay $800 million into the Boy Scouts
victim fund. Hartford Accident & Indemnity Co. agreed to pay $787
million.
"The claimants are asking the bankruptcy court to rewrite the
insurance contracts," Tancred Schiavoni of O'Melveny & Myers LLP,
an attorney for Century, told Bloomberg Law.
Several Boy Scouts' insurers are appealing the nonprofit
organization's $2.46 billion bankruptcy plan.
How the Camden confirmation trial and the Boy Scouts appeal shake
out could give future guidance to victims, debtors, and insurers
over whether such bypass-insurers strategies will hold up under
scrutiny.
"I think this is a model the abuse survivors will be looking to
replicate if the insurers do not make reasonable efforts to resolve
the cases," Horowitz said.
DOUBLE EAGLE: S&P Affirms 'B' ICR on Term Loan Upsize
-----------------------------------------------------
S&P Global Ratings affirmed all its ratings, including its 'B'
issuer credit rating on Double Eagle Buyer (d/b/a Restaurant
Technologies) and its 'B' issue-level rating on its first-lien
secured facility.
The negative outlook reflects elevated leverage following the
incremental debt that offset improved performance and the
possibility S&P could lower the rating if debt to EBITDA and free
operating cash flow (FOCF) to debt did not improve to under 6.5x
and low-single-digit area respectively.
Restaurant Technologies Inc., a Mendota Heights, Minn.-based
provider of oil management solutions to the restaurant and
hospitality industries, has issued an incremental $75 million term
loan B. It plans to use the proceeds to refinance revolving credit
facility borrowings and to support growth.
Additional debt keeps leverage elevated. S&P said, "We expect the
company's S&P Global Ratings-adjusted leverage to spike over 8x in
2022, before improving to the mid-5x area in 2023 as one-time costs
roll off and earnings continue to improve. We believe FOCF will
remain constrained in the next year from higher interest and growth
in capital spending."
New customer wins and cost inflation drive higher capital
expenditures (capex). S&P said, "We forecast customer count to grow
in the double-digit percent area in the next year and net revenue
growth to remain solid. Increases in volumes leads to additional
capex and we forecast capex of over $70 million annually for
installations, equipment, and higher truck maintenance. We think
this spending is accretive to earnings and has about a 1.5-year
payback period. We believe the company has some flexibility to pare
back spending to some extent if needed under less-favorable
operating conditions."
S&P said, "We expect Restaurant Technologies will benefit from an
increase in business volume, driving our views on credit metrics.
We believe expense leverage and cost initiatives should lead to
growth in EBITDA; however, volatility in used cooking oil prices
could be an offsetting factor. Our higher earnings expectations
should help to partly offset the increase in additional debt the
company will use to term out the revolver borrowings. Year to date
for third quarter of fiscal 2022, revenue grew in the double-digit
percent area on unit and price increases from customer growth.
While we think customers may cut back on spending in dining out in
a recessionary environment, potentially resulting in lower oil
volumes, growth in the client base, a diverse customer mix, and
penetration with its existing customers should sustain revenue and
EBITDA."
The negative outlook reflects the high starting leverage in the 8x
area and negligible FOCF generation in the next year primarily
because of elevated growth capex spending.
S&P said, "We could lower our ratings if S&P Global
Ratings-adjusted leverage stayed above 6.5x or the company had
persistently negative FOCF. This could also occur if there were
elevated capex requirements with limited earnings benefit, volatile
UCO prices, intensifying competitive pressures, or debt-funded
dividends.
"Over the next 12 months, we could raise our ratings if the company
demonstrated strong operating performance resulting in S&P Global
Ratings-adjusted leverage trending toward 6.5x and improved FOCF to
debt to the low- to mid-single-digit area on a sustained basis. We
would also have to believe that there were minimal risk of a
leveraging event, including a meaningful debt-funded dividend."
ESG credit indicators: E-2 S-2 G-3
S&P said, "Governance is a moderately negative consideration, as it
is for most rated entities owned by private-equity sponsors. We
believe the company's highly leveraged financial risk profile
points to corporate decision-making that prioritizes the interests
of the controlling owners. This also reflects private-equity
sponsors' generally finite holding periods and focus on maximizing
shareholder returns."
ECOARK HOLDINGS: Files Cert. of Amendment to Increase Share Value
-----------------------------------------------------------------
Following approval of the Board of Directors of Ecoark Holdings,
Inc. and agreement between the Company and the holder as previously
disclosed, the Company filed on Nov. 28, 2022, a Third Certificate
of Amendment to the Certificate of Designations of Rights,
Preferences and Limitations of Series A Convertible Redeemable
Preferred Stock with the Nevada Secretary of State to: (i) increase
the stated value of the Series A from $10,000 to $10,833.33; (ii)
provide for the dividends payable under the Series A to be payable
in common stock rather than cash effective beginning Nov. 1, 2022,
and (iii) reduce the conversion price of the Series A from $2.10 to
the lesser of (1) $1.00 and (2) the higher of (A) 80% of the 10-day
daily volume weighted average price and (B) $0.25.
About Ecoark Holdings
Rogers, Arkansas-based Ecoark Holdings, Inc., founded in 2011, is a
diversified holding company. Through its wholly-owned
subsidiaries, the Company has operations in three areas: (i) oil
and gas, including exploration, production and drilling operations
and transportation services, (ii) post-harvest shelf-life and
freshness food management technology, and (iii) financial services
including consulting, fund administration and asset management.
Ecoark reported a net loss of $10.55 million for the year ended
March 31, 2022, a net loss of $20.89 million for the year ended
March 31, 2021, a net loss of $12.14 million for the year ended
March 31, 2020, and a net loss of $13.65 million for the year
ended
March 31, 2019. As of Sept. 30, 2022, the Company had $46.62
million in total assets, $9.32 million in total liabilities, $9.21
million in series A convertible redeemable preferred stock, and
$28.08 million in total stockholders' equity.
EYECARE SERVICES: Golub Values $1.2M Loan at 65% of Face
--------------------------------------------------------
Golub Capital BDC 3, Inc., has marked its $1,214,000 loan extended
to Eyecare Services Partners Holdings LLC to market at $789,000, or
65% of the outstanding amount, as of September 30, 2022, according
to a disclosure contained in Golub's Form 10-K filing for the year
ended September 30, 2022, filed with the Securities and Exchange
Commission on December 2.
Golub's One stop loan to Eyecare Services charges 4.12% cash/8.25%
PIK in interest rate. The loan is scheduled to mature in May
2023.
Golub is a business development company formed in August 2017 to
make investments and generate current income and capital
appreciation by investing primarily in one stop loans (a loan that
combines characteristics of traditional first lien senior secured
loans and second lien or subordinated loans that are often referred
to by other middle market lenders as unitranche loans) and other
senior secured loans of U.S. middle-market companies that are, in
most cases, sponsored by private equity firms.
EyeCare Services Partners Holdings LLC operates as a holding
company. The Company, through its subsidiaries, provides eye care
services.
EYECARE SERVICES: Golub Values $127,000 Loan at 52% of Face
-----------------------------------------------------------
Golub Capital BDC 3, Inc., has marked its $127,000 loan extended to
Eyecare Services Partners Holdings LLC to market at $66,000, or 52%
of the outstanding amount, as of September 30, 2022, according to a
disclosure contained in Golub's Form 10-K filing for the year ended
September 30, 2022, filed with the Securities and Exchange
Commission on December 2.
Golub's One stop loan to Eyecare Services charges 4.14% cash/8.25%
PIK in interest rate. The loan is scheduled to mature in May
2023.
Golub is a business development company formed in August 2017 to
make investments and generate current income and capital
appreciation by investing primarily in one stop loans (a loan that
combines characteristics of traditional first lien senior secured
loans and second lien or subordinated loans that are often referred
to by other middle market lenders as unitranche loans) and other
senior secured loans of U.S. middle-market companies that are, in
most cases, sponsored by private equity firms.
EyeCare Services Partners Holdings LLC operates as a holding
company. The Company, through its subsidiaries, provides eye care
services.
EYECARE SERVICES: Golub Values $4M Loan at 65% of Face
------------------------------------------------------
Golub Capital BDC 3, Inc., has marked its $4,077,000 loan extended
to Eyecare Services Partners Holdings LLC to market at $2,651,000,
or 65% of the outstanding amount, as of September 30, 2022,
according to a disclosure contained in Golub's Form 10-K filing for
the year ended September 30, 2022, filed with the Securities and
Exchange Commission on December 2.
Golub's One stop loan to Eyecare Services charges 4.12% cash/8.25%
PIK in interest rate. The loan is scheduled to mature in May
2023.
Golub is a business development company formed in August 2017 to
make investments and generate current income and capital
appreciation by investing primarily in one stop loans (a loan that
combines characteristics of traditional first lien senior secured
loans and second lien or subordinated loans that are often referred
to by other middle market lenders as unitranche loans) and other
senior secured loans of U.S. middle-market companies that are, in
most cases, sponsored by private equity firms.
EyeCare Services Partners Holdings LLC operates as a holding
company. The Company, through its subsidiaries, provides eye care
services.
EYECARE SERVICES: Golub Values $91,000 Loan at 65% of Face
----------------------------------------------------------
Golub Capital BDC 3, Inc., has marked its $91,000 loan extended to
Eyecare Services Partners Holdings LLC to market at $59,000, or 65%
of the outstanding amount, as of September 30, 2022, according to a
disclosure contained in Golub's Form 10-K filing for the year ended
September 30, 2022, filed with the Securities and Exchange
Commission on December 2.
Golub's One stop loan to Eyecare Services charges 4.14% cash/8.25%
PIK in interest rate. The loan is scheduled to mature in May
2023.
Golub is a business development company formed in August 2017 to
make investments and generate current income and capital
appreciation by investing primarily in one stop loans (a loan that
combines characteristics of traditional first lien senior secured
loans and second lien or subordinated loans that are often referred
to by other middle market lenders as unitranche loans) and other
senior secured loans of U.S. middle-market companies that are, in
most cases, sponsored by private equity firms.
EyeCare Services Partners Holdings LLC operates as a holding
company. The Company, through its subsidiaries, provides eye care
services.
FARRAGUT HEALTH: Seeks to Hire SquareOne Realty as Broker
---------------------------------------------------------
Farragut Health Care Center, LP seeks approval from the U.S.
Bankruptcy Court for the Eastern District of Tennessee to employ
SquareOne Realty, LLC as broker.
The Debtor needs a broker to assist in the marketing and sale of
its real property located at 12823 Kingston Pike, Knoxville, Tenn.
SquareOne Realty will receive a commission of 4 percent of any sale
price except for the sale to specifically identified buyers in the
final contract, which will reduce its commission to 2 percent.
Andrew Barrett, a broker at SquareOne Realty, 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:
Andrew Barrett
SquareOne Realty, LLC
424 Georgia Ave.
Chattanooga, TN 37403
Telephone: (423) 551-3279
About Farragut Health Care Center
Farragut Health Care Center LP sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. E.D. Tenn. Case No. 22-31595)
on Oct. 20, 2022, with up to $50 million in assets and up to $10
million in liabilities. Judge Suzanne H. Bauknight oversees the
case.
Lynn Tarpy, Esq., at Tarpy, Cox, Fleishman & Leveille, PLLC serves
as the Debtor's legal counsel.
FARRAGUT HEALTH: Taps Senior Living Investment Brokerage as Broker
------------------------------------------------------------------
Farragut Health Care Center, LP seeks approval from the U.S.
Bankruptcy Court for the Eastern District of Tennessee to employ
SLIB II, LLC, doing business as Senior Living Investment Brokerage,
as broker.
The Debtor needs a broker to assist in the marketing and sale of
its real property located at 12823 Kingston Pike, Knoxville, Tenn.
SLIB II will receive a commission of 4 percent of any sale price
except for the sale to specifically identified buyers in the final
contract, which will reduce its commission to 2 percent.
Patrick Burke, a broker at SLIB II, 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:
Patrick Burke
Senior Living Investment Brokerage
490 Pennsylvania Ave.
Glen Ellyn, IL 60137
Telephone: (630) 858-2501
About Farragut Health Care Center
Farragut Health Care Center LP sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. E.D. Tenn. Case No. 22-31595)
on Oct. 20, 2022, with up to $50 million in assets and up to $10
million in liabilities. Judge Suzanne H. Bauknight oversees the
case.
Lynn Tarpy, Esq., at Tarpy, Cox, Fleishman & Leveille, PLLC serves
as the Debtor's legal counsel.
FAST RADIUS: Gets OK to Hire Stretto as Administrative Advisor
--------------------------------------------------------------
Fast Radius, Inc. and its affiliates received approval from the
U.S. Bankruptcy Court for the District of Delaware to hire 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 receive a retainer in the amount of $25,000 and
reimbursement for out-of-pocket expenses incurred.
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 Fast Radius
Fast Radius, Inc. is a cloud manufacturing and digital supply chain
company in Chicago, Ill.
Fast Radius, Inc. and affiliates, Fast Radius Operations, Inc. and
Fast Radius PTE Ltd., sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 22-11051) on
Nov. 7, 2022. In the petition signed by Patrick McCusker,
authorized signatory, Fast Radius, Inc. disclosed $69.329 million
in assets and $55.212 in liabilities.
The Debtors tapped DLA Piper LLP (US) and Bayard, P.A. as legal
counsels; Lincoln Partners Advisors, LLC as investment banker;
Alvarez & Marsal North, America, LLC as financial advisor; and
Stretto, Inc. as claims and noticing agent and administrative
advisor.
The U.S. Trustee for Region 3 appointed an official committee of
unsecured creditors in the Debtors' Chapter 11 cases on Nov. 18,
2022. The committee is represented by Potter Anderson Corroon, LLP.
FIRST BRANDS: S&P Rates New $300MM 1st-Lien Term Loan Add-On 'B+'
-----------------------------------------------------------------
S&P Global Ratings assigned its 'B+' issue-level rating and '3'
recovery rating to First Brands Group LLC's proposed $300 million
non-fungible add-on to its first-lien term loan due March 2027. The
'3' recovery rating indicates S&P's expectation for meaningful
(50%-70%; rounded estimate: 60%) recovery in the event of a
default.
S&P said, "This issuance does not affect our view of the company's
credit quality. Therefore, Our 'B+' issuer credit rating and stable
outlook on First Brands, as well as our 'B+' issue-level rating and
'3' recovery rating on its first-lien debt, are unchanged. First
Brands will use the proceeds from this issuance for general
corporate purposes, including to fund mergers and acquisitions and
enhance its liquidity.
"While we expect the transaction to moderately increase the
company's leverage due to the additional debt, we anticipate its
recent performance, integration of Pylon, and continued realization
of cost savings will enable it to maintain its leverage in the
mid-4x range. First Brands' recent working capital trends and
restructuring initiatives have weighed on its free operating cash
flow (FOCF) in 2022 and we expect that its FOCF to debt will
decline below 5% this year before improving above 5% in subsequent
years. The $300 million non-fungible add-on will further enhance
the company's liquidity, with pro forma balance sheet cash at close
exceeding $850 million. Although this is a higher level of
liquidity than it has maintained historically and exceeds the
levels of its aftermarket supplier peers, we expect that the
company will use much of the cash for small- to mid-size tuck-in
acquisitions and to finance inventory investments for its new
products and programs to capture market share. If the acquisitions
or working capital investments lead to a significant and sustained
reduction in First Brands' FOCF, we could consider lowering our
rating.
The company's ability to sustain its EBITDA margins will also
remain critical for its leverage and cash flow profile, which will
depend on the resilience of its business amid weaker macroeconomic
conditions, including persistent inflation, deferred discretionary
spending, and ongoing supply chain disruptions.
ISSUE RATINGS--RECOVERY ANALYSIS
Key analytical factors
-- S&P's simulated default scenario envisions a payment default
occurring in 2026 due to one, or a combination of, the following
factors: a sustained economic downturn or the loss of a top
customer, which negatively affects First Brands' sales volumes,
profitability, and cash flow and burdens its liquidity, or
operational disruptions that affect its ability to achieve its
planned cost savings or pass through inflationary cost pressures.
-- S&P expects that First Brands' receivables factoring financing
(associated with its big-box retail customers) will be treated as a
priority claim given its working capital usage at default.
Simulated default assumptions
-- Simulated year of default: 2026
-- EBITDA at emergence: $350 million
-- EBITDA multiple: 5x
Simplified waterfall
-- Net enterprise value (after 5% administrative costs): $1,666
million
-- Valuation split (obligors/nonobligors): 88%/12%
-- Total value available to first-lien: $1,408 million
-- Total first-lien debt: $2,377 million
--Recovery expectations: 50%-70% (rounded estimate: 60%)
-- Total second-lien debt: $570 million
--Recovery expectations: 0%-10% (rounded estimate: 0%)
FTX GROUP: Binance Gains From Collapse as Trading Surges
--------------------------------------------------------
Aaryamann Shrivastava of FXStreet reports that Binance noted a
significant increase in the daily traded volume over the month of
November. The fall of FTX triggered a rise in user participation,
benefitting some of the biggest exchanges, including Binance,
Coinbase, Kraken etc.
As per crypto data provider Kaiko's newsletter, the monthly traded
volume spiked by 23% to $705 billion. However, this jump was
primarily led by Binance, whose trading activity noted a 30% rise
in the last month. Over time, this is expected to swell further as
Binance is in a position of strength at the moment. The newsletter
justified this as,
"Binance may benefit, despite not having an official
headquarters, because it has projected an image of strength through
the crisis with the best liquidity of any centralized exchange."
The evidence of the same is visible in the initiatives taken by
Binance in the last couple of weeks. Binance established the
Industry Recovery Initiative (IRI) fund to support the projects
impacted by the liquidity crisis due to FTX's downfall. The
cryptocurrency exchange alone allocated over $1 billion at launch
and also encouraged other industry players to do the same.
Binance also initiated the transparency trend by suggesting the
publishing of Proof of Reserves of customer funds. The exchange
walked the talk and posted its Bitcoin reserves to the ratio of
101%, covering $9.48 billion worth of customer funds with reserves
valued at over $9.59 billion.
About FTX Group
FTX is the world's second-largest cryptocurrency firm. FTX is a
cryptocurrency exchange built by traders, for traders. FTX offers
innovative products including industry-first derivatives, options,
volatility products and leveraged tokens.
Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that
FTX paused customer withdrawals after it was hit with roughly $5
billion worth of withdrawal requests.
Faced with liquidity issues, FTX on Nov. 9, 2022, struck a deal to
sell itself to its giant rival Binance, but Binance walked away
from the deal the next day amid reports on FTX regarding mishandled
customer funds and alleged US agency investigations.
At approximately 4:30 a.m. on Nov. 11, Bankman-Fried ultimately
agreed to step aside, and restructuring vet John J. Ray III was
quickly named new CEO.
FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc.
(d/b/a FTX US), Alameda Research Ltd. and certain affiliated
companies then commenced Chapter 11 proceedings (Bankr. D. Del.
Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022.
Additional entities sought Chapter 11 protection on Nov. 14, 2022.
A total of 102 entities related to FTX have filed for Chapter 11
protection.
FTX Trading and its affiliates each listed $10 billion to $50
million in assets and liabilities, making FTX the biggest
bankruptcy filer in the US this year. According to Reuters, CEO
Bankman-Fried shared a document with investors on Nov. 10 showing
FTX had $13.86 billion in liabilities and $14.6 billion in assets.
However, only $900 million of those assets were liquid, leading to
the cash crunch that ended with the company filing for bankruptcy.
The Hon. John T. Dorsey is the case judge.
Andrew G. Dietderich, James L. Bromley, Brian D. Glueckstein
andAlexa J. Kranzley at Sullivan & Cromwell LLP in New York, serve
as the Debtors' counsel.
Adam G. Landis, Kimberly A. Brown and Matthew R. Pierce at LANDIS
RATH & COBB LLP in Wilmington serve as local bankruptcy counsel to
FTX Group.
Alvarez & Marsal North America, LLC, is the Debtors' financial
advisor.
Kroll is the claims agent, maintaining the page
https://cases.ra.kroll.com/FTX/Home-Index
Lawyers at Paul Weiss represented SBF but later renounced
representing the entrepreneur due to a conflict of interest.
FTX GROUP: House Financial Services Panel Sets Dec. 13 Hearing
--------------------------------------------------------------
Lauren Dezenski of Bloomberg Law reports that The House Financial
Services Committee will meet on Dec. 13, 2022, for an initial
hearing investigating the collapse of FTX, according to a committee
schedule.
According to Stephanie Murray, of The Block, the House lawmakers
will start their probe on the downfall of FTX along with its
broader implications on the digital asset industry. The House
Financial Services Committee will hold its first FTX-focused
hearing on Dec. 13. The hearing, titled "Investigating the Collapse
of FTX, Part I," is likely to be part of a series.
Stephanie Murray said that the committee did'nt release a list of
witnesses for the December 13, 2022 hearing. Waters and Ranking
Republican Rep. Patrick McHenry, R-N.C., have previously said they
want former FTX CEO Sam Bankman-Fried to participate, along with
companies involved including Bankman-Fried's Alameda Research
trading firm and rival exchange Binance. McHenry, the likely chair
of the committee next Congress, told The Block earlier this month
that he expects Binance's role in the collapse to also be a focus
of the hearing.
About FTX Group
FTX is the world's second-largest cryptocurrency firm. FTX is a
cryptocurrency exchange built by traders, for traders. FTX offers
innovative products including industry-first derivatives, options,
volatility products and leveraged tokens.
Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that
FTX paused customer withdrawals after it was hit with roughly $5
billion worth of withdrawal requests.
Faced with liquidity issues, FTX on Nov. 9, 2022, struck a deal to
sell itself to its giant rival Binance, but Binance walked away
from the deal the next day amid reports on FTX regarding mishandled
customer funds and alleged US agency investigations.
At approximately 4:30 a.m. on Nov. 11, Bankman-Fried ultimately
agreed to step aside, and restructuring vet John J. Ray III was
quickly named new CEO.
FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc.
(d/b/a FTX US), Alameda Research Ltd. and certain affiliated
companies then commenced Chapter 11 proceedings (Bankr. D. Del.
Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022.
Additional entities sought Chapter 11 protection on Nov. 14, 2022.
A total of 102 entities related to FTX have filed for Chapter 11
protection.
FTX Trading and its affiliates each listed $10 billion to $50
million in assets and liabilities, making FTX the biggest
bankruptcy filer in the US this year. According to Reuters, CEO
Bankman-Fried shared a document with investors on Nov. 10 showing
FTX had $13.86 billion in liabilities and $14.6 billion in assets.
However, only $900 million of those assets were liquid, leading to
the cash crunch that ended with the company filing for bankruptcy.
The Hon. John T. Dorsey is the case judge.
Andrew G. Dietderich, James L. Bromley, Brian D. Glueckstein
andAlexa J. Kranzley at Sullivan & Cromwell LLP in New York, serve
as the Debtors' counsel.
Adam G. Landis, Kimberly A. Brown and Matthew R. Pierce at LANDIS
RATH & COBB LLP in Wilmington serve as local bankruptcy counsel to
FTX Group.
Alvarez & Marsal North America, LLC, is the Debtors' financial
advisor.
Kroll is the claims agent, maintaining the page
https://cases.ra.kroll.com/FTX/Home-Index
Lawyers at Paul Weiss represented SBF but later renounced
representing the entrepreneur due to a conflict of interest.
GAUCHO GROUP: Signs Exchange Agreement With Noteholders
-------------------------------------------------------
Gaucho Group Holdings, Inc. and certain investors entered into an
exchange agreement on Nov. 30, 2022, in order to amend and waive
certain provisions of the Securities Purchase Agreement dated
November 3, 2021, and exchange $100 in aggregate principal amount
of each of the senior secured convertible notes (the Existing
Notes), on the basis and subject to the terms and conditions set
forth in the Exchange Agreement, for warrants to purchase up to
43,814 shares of the Company's Common Stock at an exercise price of
$2.40 and warrants to purchase up to 43,814 shares of the Company's
Common Stock at an exercise price of $6.00 (subject to customary
adjustment upon subdivision or combination of the common stock).
The Exchange Agreement extends the maturity date of the Existing
Notes from Nov. 9, 2022 to Feb. 9, 2023 and waives all other
payments due until Feb. 9, 2023.
The Warrants are immediately exercisable and may be exercised at
any time, and from time to time, on or before the third anniversary
of the date of issuance. The Warrant includes a "blocker"
provision that, subject to certain exceptions described in the
Warrant, prevents the Investors from exercising the Warrant to the
extent such exercise would result in the Investors together with
certain affiliates beneficially owning in excess of 4.99% of the
Common Stock outstanding immediately after giving effect to such
exercise.
As previously reported on the Company's Current Report on Form 8-K
filed on Nov. 8, 2021, Gaucho Group and the investors entered into
the Securities Purchase Agreement and the Company issued to the
investors certain senior secured convertible notes.
About Gaucho Group
Headquartered in New York, NY, Gaucho Group Holdings, Inc. --
http://www.algodongroup.com-- was incorporated on April 5, 1999.
Effective Oct. 1, 2018, the Company changed its name from Algodon
Wines & Luxury Development, Inc. to Algodon Group, Inc., and
effective March 11, 2019, the Company changed its name from Algodon
Group, Inc. to Gaucho Group Holdings, Inc. Through its
wholly-owned subsidiaries, GGH invests in, develops and operates
real estate projects in Argentina. GGH operates a hotel, golf and
tennis resort, vineyard and producing winery in addition to
developing residential lots located near the resort. In 2016, GGH
formed a new subsidiary and in 2018, established an e-commerce
platform for the manufacture and sale of high-end fashion and
accessories. The activities in Argentina are conducted through its
operating entities: InvestProperty Group, LLC, Algodon Global
Properties, LLC, The Algodon - Recoleta S.R.L, Algodon Properties
II S.R.L., and Algodon Wine Estates S.R.L. Algodon distributes its
wines in Europe through its United Kingdom entity, Algodon Europe,
LTD.
Gaucho Group reported a net loss of $2.39 million for the year
ended Dec. 31, 2021, a net loss of $5.78 million for the year ended
Dec. 31, 2020, and a net loss of $6.96 million for the year ended
Dec. 31, 2019. As of Sept. 30, 2022, the Company had $25.39
million in total assets, $6.86 million in total liabilities, and
$18.53 million in total stockholders' equity.
GIRARDI & KEESE: Feds Say Ex-CFO Drained GK With Fake Vendors
-------------------------------------------------------------
Christopher Kamon, former chief financial officer for the defunct
Girardi Keese law firm, has been charged with wire fraud, according
to court records and the FBI. Kamon in early November 2022 was
taken into custody at Baltimore-Washington International Airport
after returning from the Bahamas.
An affidavit outlining the case against Kamon, 49, reveals that
Kamon spent more than $8 million of Girardi Keese's money on
extensive home remodeling, exotic sports cars, and an escort.
"Over the course of several years, KAMON, who was previously the
Controller and Chief Financial Officer of the now-defunct law firm,
Girardi/Keese, funneled millions of dollars from the law firm's
operating accounts to bank accounts that he or his co-schemers
controlled," FBI Special Agent Elias Guerrero said in the unsealed
affidavit.
"Unbeknownst to GK's principals, including now-disbarred attorney
Thomas V. Girardi, it is estimated that between at least 2017 and
2020 (the year GK was forced into involuntary bankruptcy), KAMON
caused over $8 million to be drained, using interstate wirings,
from GK's operating accounts for his own personal uses, including
by falsely representing and maintaining the pretense that the money
was being paid to GK's vendors when it was actually being used to
pay for the extensive remodeling of his personal properties, the
purchase of exotic sports cars, extravagant travel around the
world, and escorts. Additionally, KAMON also directed GK funds to
his co-schemers, who in turn provided KAMON with
millions of dollars in cash kickbacks while keeping a small fee for
themselves."
Reuters reports that Kamon faces a maximum 20 years in prison if
convicted. U.S. Magistrate Judge Matthew Maddox in Baltimore has
ordered Kamon to be held without bail.
Kamon has not yet entered a plea.
Kamon's lawyer is Skadden, Arps, Slate, Meagher & Flom partner
Jessie Liu.
About Girardi & Keese
Girardi and Keese or Girardi & Keese was a Los Angeles-based law
firm founded in 1965 by lawyers Thomas Girardi and Robert Keese.
It served clients in California in a variety of legal areas. It
was known for representing plaintiffs against major corporations.
An involuntary Chapter 7 petition (Bankr. C.D. Cal. Case No.
20-21022) was filed in December 2020 against GIRARDI KEESE by
alleged creditors Jill O'Callahan, Robert M. Keese, John Abassian,
Erika Saldana, Virginia Antonio, and Kimberly Archie.
The petitioners' attorneys:
Andrew Goodman
Goodman Law Offices, Apc
Tel: 818-802-5044
E-mail: agoodman@andyglaw.com
Elissa D. Miller, a member of the firm SulmeyerKupetz, has been
appointed as Chapter 7 trustee for GIRARDI KEESE. The Chapter 7
trustee can be reached at:
Elissa D. Miller
333 South Grand Ave., Suite 3400
Los Angeles, California 90071-1406
Telephone: (213) 626-2311
Facsimile: (213) 629-4520
E-mail: emiller@sulmeyerlaw.com
An involuntary Chapter 7 petition was also filed against Thomas
Vincent Girardi (Case No. 20-21020) on Dec. 18, 2020. The Chapter 7
trustee can be reached at:
Jason M. Rund
Email: trustee@srlawyers.com
840 Apollo Street, Suite 351
El Segundo, CA 90245
Telephone: (310) 640-1200
GK8 LTD: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------
Three affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
GK8 Ltd. 22-11643
Daniel Frisch 3 Street
Tel Aviv-Yafo, Israel 6473104
GK8 UK Limited 22-11645
GK8 USA LLC 22-11644
Business Description: GK8 is a blockchain security company
offering financial institutions an end-to-
end platform, or "vault," for managing
blockchain-based assets on their own.
The Debtors request that the Court maintain
one file and one docket for all of the
jointly administered cases under the case of
Celsius Network LLC (Bankr. S.D.N.Y. Lead
Case No. 22-10964).
Chapter 11 Petition Date: December 7, 2022
Court: United States Bankruptcy Court
Southern District of New York
Judge: Hon. Martin Glenn
Debtors' Counsel: Joshua A. Sussberg, Esq.
KIRKLAND & ELLIS LLP
601 Lexington Avenue
New York, NY 10022
Tel: (212) 446-4800
Email: joshua.sussberg@kirkland.com
Debtors'
Financial
Advisor: ALVAREZ & MARSAL NORTH AMERICA, LLC
Debtors'
Investment
Banker: CENTERVIEW PARTNERS LLC
Debtors'
Regulatory
Counsel: LATHAM & WATKINS, LLP
Debtors'
Notice &
Claims
Agent: STRETTO, INC.
Debtors'
Israeli
Counsel: FBC & CO.
Estimated Assets
(on a consolidated basis): $1 million to $10 million
Estimated Liabilities
(on a consolidated basis): $1 billion to $10 billion
The petitions were signed by Christopher Ferraro as director and
chief financial officer.
Full-text copies of the petitions are available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/OIXCA5I/GK8_Ltd__nysbke-22-11643__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/OWZU4MI/GK8_USA_LLC__nysbke-22-11644__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/MXBDXNQ/GK8_UK_Limited__nysbke-22-11645__0001.0.pdf?mcid=tGE4TAMA
Consolidated List of Debtors' 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
1. Israel Innovation Authority Trade Payable $63,200
Technology Park,
Derech Agudat Sport
Ha'Poel 2
Jerusalem, Isreal 95102
Tel: 972-3-7157900
Email: contactus@innovationisrael.org.il
2. DOIT International Trade Payable $20,806
David Elazar 12
Tel Aviv, Israel
Tel: 408-831-3500
3. 10BIS Trade Payable $10,742
Derech Begin 146
Tel Aviv, Israel
Tel: 972-3-5630100
Email: info@10bis.co.il
4. Kost Forer Gabby & Professional $7,547
Kasierer, A Member of Services
Ernst & Young Global
144 Menachem Begin Rd, 6492102
Tel Aviv, Israel
Tel: 972-3-6232525
5. Techen Trade Payable $6,820
Daniel Frisch 3
Tel Aviv, Israel
Tel: 972-3-6963707
Email: info@niki-nikayon.com
6. Niki Ga Management Trade Payable $4,766
and Maintenance Ltd
23 Bar Kochva
BNEI Brak, Israel 5126002
Tel: 972-3-691979
Email: info@niki-nikayon.com
7. Guberman Consulting Professional $4,604
Yad Harutzim 12 Services
Tel Aviv, Israel
Tel: 972-3-5372237
Email: info@Guberman.co.il
8. NEOT Aviv Trade Payable $3,581
IBN Gabirol 30
Tel Aviv, Israel
Tel: 6957455-3-972
Email: office@keret.co.il
9. Tel Aviv Municipality Taxes $3,103
Shlomo IBN Gabirol St 69
Tel Aviv, Israel
Tel: 972-3-7253861
Email: reinach_j@mail.tel-aviv.gov.il
10. XTRA Mile Ltd. Trade Payable $3,009
Hatamar 75
Neve Y Amin, Israel 4492000
Tel: 972-77-321-3100
Email: info@xtra-mile.co
11. Michael Cimo Employee $2,145
Address Redacted Compensation
12. Yehuda Sharfi Trade Payable $2,143
Dam Hamaccabim 11
Tel Aviv - Jaffa, Israel
Tel: 972-52-2752187
13. G.E. Ehrlich (1995) Ltd. Trade Payable $1,757
The Rogovin-Tidhar Tower
15th Floor
11 Menachem Begin Road
Ramat-Gan, Israel 5268104
Tel: 972-73-7919199
Email: info@ipatent.co.il
14. Daniel Ibrahim Employee $1,284
Address Redacted Compensation
15. Movilei Hovalot Trade Payable $937
16. Eran Tromer Contractor Payable $387
Address Redacted
17. Elie Simon Contractor Payable $387
Address Redacted
18. Blockdaemon Trade Payable $387
1055 West 7th Street
Los Angeles, CA 90017
Tel: 310-598-9993
Email: accounting@blockdaemon.com
19. YHM Technology Ltd Trade Payable $286
Derech Begin 132
Tel Aviv, Israel
Email: office@yhmtech.co.il
20.Shufersal Trade Payable $194
30 Shmotkin Benyamin Street
PO Box 15103
Rishon Le-Zion Israel
Tel: 972-3-956-8848
GLOBAL PROCESSING: Gets OK to Hire Day Rettig Martin as Counsel
---------------------------------------------------------------
Global Processing, Inc. received approval from the U.S. Bankruptcy
Court for the Northern District of Iowa to employ Day Rettig
Martin, PC as its counsel.
The firm will render these services:
(a) prepare legal papers;
(b) develop the relationship of the status of the Debtor to
the claims of creditors in this Chapter 11 case;
(c) advise the Debtor of its rights, duties, and obligations
under Chapter 11 of the Bankruptcy Code;
(d) take all other necessary action incident to the proper
preservation and administration of this Chapter 11 case; and
(e) advise and assist the Debtor in the formulation and
implementation of a plan pursuant to Chapter 11 of the Bankruptcy
Code, the disclosure statement, or an orderly liquidation of
assets, and any and all matters related thereto.
The hourly rates of the firm's counsel and staff are as follows:
Shareholders $350
Associate Attorneys $250
Paralegals $150
Prior to the petition filing, the firm received a retainer in the
amount of $25,000 from the Debtor.
Ronald Martin, Esq., an attorney at Day Rettig Martin, 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:
Ronald C. Martin, Esq.
Day Rettig Martin, PC
P.O. Box 2877
Cedar Rapids, IA 52406
Telephone: (319) 365-0437
Facsimile: (319) 365-5866
Email: ronm@drpilaw.com
About Global Processing
Global Processing Inc. -- http://www.globalprocessing.org/--
supplies customers around the world with value-added, quality,
farm-grown food products. The company is based in Kanawha, Iowa.
Global Processing filed a petition for relief under Chapter 11 of
the Bankruptcy Code (Bankr. N.D. Iowa Case No. 22-00669) on Oct.
24, 2022, with between $10 million and $50 million in both assets
and liabilities. David M. Wilcox, president of Global Processing,
signed the petition.
Judge Thad J. Collins oversees the case.
The Debtor tapped Ronald C. Martin, Esq., at Day Rettig Martin, PC
as legal counsel and Gregory DeWeese, a professional practicing in
Minnesota, as financial advisor.
GREENWORKS SERVICE: Case Summary & Seven Unsecured Creditors
------------------------------------------------------------
Debtor: GreenWorks Service Company
600 N. Pearl Street, Suite 1900S
Dallas, TX 75201
Business Description: The Debtor provides inspections, structural
engineering, environmental testing, handyman
services, and pest control services for
residential and commercial properties.
Chapter 11 Petition Date: December 7, 2022
Court: United States Bankruptcy Court
Northern District of Texas
Case No.: 22-32290
Judge: Hon. Michelle V. Larson
Debtor's Counsel: Robert C. Lane, Esq.
THE LAW LANE FIRM
6200 Savoy Dr Ste 1150
Houston, TX 77036-3369
Tel: (713) 595-8200
Fax: (713) 595-8201
Email: notifications@lanelaw.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Harmony Brown as member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's seven unsecured creditors is available for
free at PacerMonitor.com at:
https://www.pacermonitor.com/view/6XI3BYQ/GreenWorks_Service_Company__txnbke-22-32290__0001.0.pdf?mcid=tGE4TAMA
GT REAL ESTATE: Reaches Tentative Bankruptcy Deal With Rock Hill
----------------------------------------------------------------
Ely Portillo of WFAE 90.7 reports that David Tepper's real estate
company, GT Real Estate has reached a $20 million settlement with
the City of Rockhill to resolve disputes relating to the
uncompleted state-of-the-art headquarters and practice facility for
Tepper's Carolina Panthers.
Rock Hill will also receive the land where the unfinished
headquarters facility sits on and will continue efforts to sell the
site.
Once approved, the settlement could bring closure to one aspect of
the now-defunct project, which filed for bankruptcy protection in
June 2022. Contractors, who claim they're owed millions for work on
the abandoned construction site, will receive more than $60 million
to settle claims.
York County has also filed a lawsuit against the
Panthers-affiliated companies and Rock Hill to recover money spent
on the project but York County is not included in the latest
settlement proposal.
About GT Real Estate Holdings
GT Real Estate Holdings is a real estate company owned by David
Tepper. It was created to own and develop a mixed-use,
pedestrian-friendly community, sports, and entertainment venue,
that would also include a new headquarters and practice facility
for the Carolina Panthers, a National Football League team,
situated on a 234-acre site located in Rock Hill, South Carolina.
The company suspended further development of the Project in March
2022.
GT Real Estate Holdings sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Del. Case No. 22-10505) on June 2,
2022. In the petition filed by Jonathan Hickman, as chief
restructuring officer, the Debtor reports estimated assets and
liabilities between $100 million and $500 million each.
The Hon. Karen B. Owens is the case judge.
The Debtor tapped White & Case LLP as restructuring counsel; Farnan
LLP, as Delaware counsel; and Alvarez & Marsal as financial
advisor. Kroll Restructuring Administration LLC is the claims
agent.
GWG HOLDINGS: Unsecureds to Recover Up to 100% of Claims in Plan
----------------------------------------------------------------
GWG Holdings, Inc., et al., filed with the U.S. Bankruptcy Court
for the Southern District of Texas a Disclosure Statement for Joint
Chapter 11 Plan dated December 1, 2022.
The Company is a financial services firm with two principal types
of assets: (i) life settlement assets, comprised of a portfolio of
intermediate-duration and long-duration life insurance policies
(each a "Policy" and collectively, the "Policy Portfolio") and (ii)
passive, noncontrolling equity interests in Ben and FOXO,
independent, non-affiliated entities that operate in the
alternative assets and epigenetics spaces, respectively.
As of the Initial Petition Date, GWGH and GWG Life had outstanding
Public L Bonds in the approximate amount of $1.26 billion,
Liquidity Bonds in the approximate amount of $0.8 million
($800,000), and Seller Trust L Bonds in the approximate amount of
$367 million (for a total approximate amount of $1.627 billion).
The Public L Bonds, Liquidity Bonds, and Seller Trust L Bonds are
referred to herein collectively as the "Bonds," and the holders of
such Bonds are referred to herein collectively as the "Bondholders.
"
The Company's proposed Plan gives Bondholders, who hold the largest
amount of outstanding debt issued by the Company, the ability to
benefit from the value of the Company's life settlements portfolio
and the Company's interests in The Beneficient Company Group, L.P.
("Ben LP" and, together with its subsidiaries, "Beneficient") and
FOXO Technologies, Inc. ("FOXO").
If the Plan is confirmed, the Company will continue as a going
concern after the Effective Date and will be governed by a new
board (as defined in the Plan, the "New Board") that is selectedby
a Selection Committee. Among other matters, the New Board will
determine whether to retain the Company's interests in Beneficient
and FOXO or transfer all or a portion of such interests into a
newly-formed liquidating trust to the extent necessary to enable
the Company to comply with or otherwise qualify for an exception to
or exemption from the 1940 Act.
Bondholders and certain other Holders of Claims and Interests will
receive preferred equity interests in the Reorganized GWGH and will
receive distributions, whether through the monetization of certain
assets or distributions from the Litigation Trust, in accordance
with a distribution waterfall. The preferred equity interests in
Reorganized GWGH to be distributed to the Bondholders (as defined
in the Plan, the "New Series A Preferred Stock") shall have the
senior-most priority generally and specifically shall receive all
distributions of Net Cash Proceeds of any subsequent monetization
of the Debtors' interests in Beneficient and FOXO as provided in
the distribution waterfall of Article IV.G of the Plan.
Following the Effective Date, the Company will seek, as quickly as
commercially reasonable as determined by the New Board, to have
such New Series A Preferred Stock distributed to Bondholders
registered for trading on a recognized exchange, which, in the
event such listing is successfully achieved, will provide an
additional option for near-term liquidity to Bondholders.
Additionally, Bondholders will receive, on the Effective Date, a
pro rata portion of the Portfolio Proceeds Amount, which is an
amount consisting of expected net cash proceeds from the Vida DIP
Financing Facility less certain amounts, including initial amounts
to capitalize the Reorganized Debtors and the Litigation Trust.
Class 4(a) consists of General Unsecured Claims. Each Holder of an
Allowed General Unsecured Claim shall receive its pro rata share of
the New Series B Preferred Stock. The New Series B Preferred Stock
shall accrue cumulative dividends from the Effective Date at the
rate of 3.0% per annum. Pending Cash distributions, such dividends
shall be payable in kind. The New Series B Preferred Stock shall be
subject to mandatory redemption in eight years, may be redeemed at
any time without penalty at stated value plus accrued dividends,
and, pending any such mandatory or optional redemption, shall be
entitled to Cash distributions, but only pursuant to the priority
of payment waterfalls. This Class will receive a distribution of
0-100% of their allowed claims.
Class 4(b) consists of GUC Convenience Claims. This Class will
receive a distribution of 100% of their allowed claims. Except to
the extent that a Holder of a GUC Convenience Claim agrees to a
less favorable treatment of its Allowed Claim, in full and final
satisfaction, settlement, release, and discharge of, and in
exchange for each Allowed GUC Convenience Claim, each Holder
thereof shall receive, and the option of the applicable Debtor,
either:
* payment in full in Cash of the due and unpaid portion of its
Allowed GUC Convenience Claim on the later of (x) the Effective
Date (or as soon thereafter as reasonably practicable), or (y) as
soon as practicable after the date such Claim becomes due and
payable; or
* such other treatment rendering its Allowed GUC Convenience
Claim Unimpaired.
Class 5 consists of DLP Entity General Unsecured Claims. On the
Effective Date or as soon thereafter as such Claim becomes an
Allowed Claim, each Holder of an Allowed DLP Entity General
Unsecured Claim shall receive payment in full in Cash. This Class
will receive a distribution of 100% of their allowed claims.
Class 10 consists of Common Stock in GWGH. On the Effective Date,
each Holder of Common Stock in GWGH shall receive its pro rata
share of the New Common Stock in Reorganized GWGH. The holders of
the New Common Stock shall only be entitled to Cash distributions
upon the satisfaction and redemption of the New Preferred Stock,
but only pursuant to the priority of payment waterfalls.
The Vida DIP Financing Facility and the Vida Exit Financing
Facility will fund the Portfolio Proceeds Amount, the Initial Trust
Funding Amount, and the Initial Capital Amount.
After the Effective Date, the Reorganized Debtors will continue in
business, including possibly implementing the GWG Asset Management
line of business, the continued operation of its life settlement
business through its ownership of the Policy Portfolio Equity
Interests, and the pursuit, establishment, and operation thereof,
as well as identifying, continuing to develop, and possibly
pursuing additional profitable, but related business lines, in each
case subject to the discretion of the New Board. The Reorganized
Debtors will retain the Initial Capital Amount to fund business
expenses. The Initial Capital Amount is an amount set forth in the
Plan Supplement to fund the Reorganized Debtors.
The Debtors will be reorganized into the Reorganized Debtors which,
following the Effective Date, will continue to operate the
Company's existing life settlement business and may implement the
GWG Asset Management business plan, as well as identifying,
continuing to develop, and possibly pursuing additional profitable,
but related business lines, in each case, in accordance with the
direction of the New Board and pursuant to applicable law. The
Reorganized Debtors will be capitalized with an initial capital
amount set forth in the Plan Supplement (such amount, the "Initial
Capital Amount").
Co-Counsel for the Debtors:
Matthew D. Cavenaugh, Esq.
Kristhy M. Peguero, Esq.
1401 McKinney Street, Suite 1900
Houston, Texas 77010
Telephone: (713) 752-4200
Email: kpeguero@jw.com
mcavenaugh@jw.com
Counsel for the Debtors;
Charles S. Kelley, Esq.
Mayer Brown LLP
700 Louisiana Street Suite 3400
Houston, TX 77002-2730
Tel: (713) 238-3000
Email: ckelley@mayerbrown.com
- and -
Thomas S. Kiriakos, Esq.
Louis S. Chiappetta, Esq.
Mayer Brown LLP
71 S. Wacker Drive
Chicago, IL 60606
Tel: (312) 701-0600
Email: tkiriakos@mayerbrown.com
lchiappetta@mayerbrown.com
- and -
Adam C. Paul, Esq.
Lucy F. Kweskin, Esq.
Mayer Brown LLP
1221 Avenue of the Americas
New York, NY 10020-1001
Tel: (212) 506-2500
Email: apaul@mayerbrown.com
lkweskin@mayerbrown.com
About GWG Holdings
Headquartered in Dallas Texas, GWG Holdings, Inc. (NASDAQ: GWGH),
conducts its life insurance secondary market business through a
wholly-owned subsidiary, GWG Life, LLC and GWG Life's wholly-owned
subsidiaries.
GWG Holdings Inc. and affiliates sought Chapter 11 bankruptcy
protection (Bankr. S.D. Tex. Case No. 22-90032) on April 20, 2022.
In the petition filed by Murray Holland, as president and chief
executive officer, GWG Holdings estimated assets between $1 billion
and $10 billion and estimated liabilities between $1 billion and
$10 billion.
GWG DLP Funding IV, LLC, GWG DLP Funding VI, LLC, and GWG DLP
Funding Holdings VI, LLC, commenced chapter 11 cases on October 31,
2022. Their cases are jointly administered with the cases of GWG
Holdings, Inc., et al.
The cases are assigned to Honorable Bankruptcy Judge Marvin Isgur.
The Debtors tapped Mayer Brown, LLP and Jackson Walker, LLP as
bankruptcy counsels; Tran Singh, LLP as special conflicts counsel;
FTI Consulting, Inc. as financial advisor; and PJT Partners, LP as
investment banker. Donlin Recano & Company is the Debtors' notice
and claims agent.
National Founders LP, a debtor-in-possession (DIP) lender, is
represented by Michael Fishel, Esq., Matthew A. Clemente, Esq., and
William E. Curtin, Esq., at Sidley Austin, LLP.
On June 20, 2022, the Debtors appointed Jeffrey S. Stein and
Anthony R. Horton as their independent directors. The Debtors
tapped Katten Muchin Rosenman, LLP as legal counsel and Province,
LLC as financial advisor for the independent directors.
HARRIS PHARMACEUTICAL: Trustee Taps David R. Softness as Counsel
----------------------------------------------------------------
Amy Denton Harris, the Subchapter V trustee appointed in Harris
Pharmaceutical, Inc.'s bankruptcy case, received approval from the
U.S. Bankruptcy Court for the Middle District of Florida to employ
David R. Softness, P.A. as her special counsel.
The trustee requires a special counsel to investigate and pursue
claims of the estate, including, without limitation: (i) Chapter 5
causes of action against Brian Harris, Janice Harris, and any other
recipients of avoidable transfers; (ii) claims for damages,
imposition of a constructive trust or equitable lien in connection
with breaches of fiduciary duties, usurpation of corporate
opportunities, and all other claims against Ms. Harris, Smart Skin
Health, LLC, and any other entities owned by Ms. Harris; and (iii)
any other claims against any person.
The firm has agreed to represent the trustee on a one-third
contingency fee arrangement, plus reimbursement of expenses.
As disclosed in court filings, the firm neither represents nor
holds any interest adverse to the trustee or to the Debtor's
estate.
The firm can be reached through:
David R. Softness, Esq.
David R. Softness, P.A.
201 South Biscayne Boulevard, Suite 2740
Miami, FL 33131
Phone: 305.341.3111
Fax: 305.402.0234
Email: david@softnesslaw.com
About Harris Pharmaceutical
Harris Pharmaceutical, Inc. is a manufacturer of pharmaceutical and
medicine products in Fort Myers, Fla.
Harris Pharmaceutical filed a petition under Chapter 11, Subchapter
V of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 20-08071) on
Oct. 29, 2020, disclosing $4,229,666 in total assets and $2,207,513
in total liabilities as of Sept. 30, 2021.
'Judge Caryl E. Delano oversees the case.
The Debtor tapped the Law Office of Leon A. Williamson, Jr., PA as
bankruptcy counsel.
Amy Denton Harris is the Subchapter V trustee appointed in the
Debtor's case. Stichter, Riedel, Blain & Postler P.A., Westerman
Ball Ederer Miller Zucker & Sharfstein, LLP, and David R. Softness,
P.A. serve as the trustee's special counsels. Hughes, Snell & Co.,
PA is the trustee's accountant.
HAYWARD INDUSTRIES: S&P Rates New $125MM Secured Term Loan 'BB'
---------------------------------------------------------------
S&P Global Ratings assigned its 'BB' issue-level rating and '3'
recovery rating to Hayward Industries Inc.'s (Hayward's) proposed
$125 million non-fungible add-on senior secured term loan due 2028.
The '3' recovery rating indicates S&P's expectation for meaningful
(50%-70%; rounded estimate: 60%) recovery in the event of payment
default. Proceeds will be used to repay borrowings under the
company's senior secured asset-based lending (ABL) facility and for
general corporate purposes.
S&P said, "Our 'BB' issuer credit rating on Hayward is unchanged,
as is the stable outlook. In the 12 months through October 2022,
Hayward's net sales grew 7.5%, as pool equipment demand in the
aftermarket remains healthy given a larger installed base of
swimming pools in its core U.S. market. Bolt-on acquisitions for
pool accessory products also contributed to the growth. The company
has managed to uphold 26%-28% EBITDA margins despite cost and
freight inflation through a combination of price increases,
cost-reduction initiatives, and scaling production volumes for
better fixed-cost absorption.
"Although we expect the company's pricing and the contribution from
higher-margin accessory products to continue to benefit the top
line, we expect sales volume declines in the second half of 2022 as
the dealer channel reduces inventory levels. The lower second-half
sales volumes--coupled with a negative foreign exchange impact on
international sales--will likely result in a mid-single-digit
percent year-over-year decline in fiscal 2022 EBITDA. Based on
these assumptions, we expect that fiscal year-end leverage will
remain in the low 3x area, which is unchanged from the pro forma
level for the 12 months through June 30, 2022. Fiscal 2022 leverage
has remained unchanged despite weaker second-half EBITDA because we
expect annual free operating cash flow of $180 million-$200 million
and a resulting healthy fiscal year-end cash balance of more than
$150 million (netted against S&P Global Ratings-adjusted debt)
after year-to-date acquisitions of about $62 million. Our projected
leverage levels remain well below the 4x downgrade trigger for the
rating."
Simulated default assumptions
-- Simulated default year: 2027
-- Debt service: $78 million (default year interest plus
amortization)
-- Maintenance capital expenditure: $28 million
-- Cyclicality adjustment: 5%
-- Operational adjustment: 45%
-- Emergence EBITDA: $161 million
Simplified waterfall
-- Emergence EBITDA: $161 million
-- Multiple: 6x
-- Gross recovery value: $965 million
-- Net recovery value for waterfall after administrative expenses
(5%): $917 million
-- Obligor/nonobligor valuation split: 83%/17%
-- Priority claims: $260 million
-- Net recovery value available for first-lien debt including
deficiency claims: $657 million
-- First-lien debt claims: $1.081 billion
—First-lien recovery expectations: 50%-70% (rounded estimate:
60%)
Note: All debt amounts include six months of prepetition interest.
HEALTH BUYER, LLC: Golub Values $2,000 Loan at 50% of Face
----------------------------------------------------------
Golub Capital BDC 3, Inc., has marked its $2,000 loan extended to
Health Buyer, LLC to market at $1,000, or 50% of the outstanding
amount, as of September 30, 2022, according to a disclosure
contained in Golub's Form 10-K filing for the year ended September
30, 2022, filed with the Securities and Exchange Commission on
December 2.
Golub's Senior loan to Health Buyer, LLC charges 8.03% in interest
rate. The loan is scheduled to mature in April 2028.
Golub is a business development company formed in August 2017 to
make investments and generate current income and capital
appreciation by investing primarily in one stop loans (a loan that
combines characteristics of traditional first lien senior secured
loans and second lien or subordinated loans that are often referred
to by other middle market lenders as unitranche loans) and other
senior secured loans of U.S. middle-market companies that are, in
most cases, sponsored by private equity firms.
Health Buyer, LLC, is in the Hotels, Restaurants & Leisure
industry.
HJ DYNAMIC: Unsecureds Will Recove 10% in Subchapter V Plan
-----------------------------------------------------------
HJ Dynamic Holdings, LLC, et al., filed with the U.S. Bankruptcy
Court for the District of Delaware a Subchapter V Plan of
Reorganization dated December 1, 2022.
As of the Petition Date, the Debtors: (a) owned and operated (i)
six Happy Joe's locations, a vibrant, 50-year-old chain of pizza
and ice cream restaurants, and (ii) two Tony Sacco's locations; and
(b) indirectly franchised the Happy Joe's concept to thirty seven
franchisees in both the United States and the Middle East and the
Tony Sacco's concept to two franchisees in the United States (the
"Franchised Locations").
The Debtors filed these Subchapter V Cases in an effort to reset
and refresh their operations through the implementation of a
restructuring business plan that has involved the closing of their
Tony Sacco's company restaurants (again, with no impact on the
Franchised Tony Sacco's Locations) and certain of the Happy Joe's
Debtor-owned restaurants. The Debtors have moved rapidly in these
cases to minimize bankruptcy-related costs while utilizing the
benefits of subchapter V to create a path forward as financially
stronger and more stable companies.
On October 28, 2022, the Debtors filed a motion to, inter alia,
approve the sale of certain assets (primarily equipment and
inventory) formerly used by the Debtors in their Galesburg,
Illinois and Kewanee, Illinois restaurants. The purchase price for
the Galesburg assets totaled $56,740.00 and the purchase price for
the Kewanee assets totaled $37,675.00. Such amounts were paid by
the buyers (i.e., Leslie's Pizzeria Co. and Leslie Boynton for the
Galesburg location and, for the Kewanee location, Fourboysandadaisy
Pizzeria LLC and Heather Avery) via execution of promissory notes
in favor of DRA. The performance of the obligations under these
notes is secured by security interests granted to DRA in the
purchased assets. An order granting the motion was entered on
November 30, 2022.
Pursuant to the Plan, the Debtors' primary equity holder, AAVIN,
will loan the Debtors the Unsecured Claim Distribution Amount upon
the Effective Date as a form of exit financing, in the amount of
$66,000. In consideration for loaning the Unsecured Claim
Distribution Amount, the Debtors will provide AAVIN with the
release. The Debtors shall pay the Unsecured Claim Distribution
Amount to Holders of Allowed General Unsecured Claims on a Pro Rata
basis on the Effective Date of the Plan or as soon as practicable
following the later of the Effective Date or the date on which such
Allowed Claim becomes Allowed.
Class 6 consists of General Unsecured Claims. The allowed unsecured
claims total $654,000.00. This Class will receive a distribution of
10% of their allowed claims.
* Class 6(a) consists of all General Unsecured Claims against
HJ Holdings. Each Holder of an Allowed Class 6(a) General Unsecured
Claim shall receive, in Cash, a Pro Rata Share of the Unsecured
Claim Distribution Amount as soon as reasonably practicable
following the later of the Effective Date or the date on which such
Allowed Class 6(a) Claim becomes Allowed. Distributions to Holders
of Allowed Class 6(a) Claims shall be made in full and complete
satisfaction, settlement, discharge, and release of the Allowed
Class 6(a) General Unsecured Claims. Class 6(a) is Impaired.
* Class 6(b) consists of all General Unsecured Claims against
DRA. Each Holder of an Allowed Class 6(b) General Unsecured Claim
shall receive, in Cash, a Pro Rata Share of the Unsecured Claim
Distribution Amount as soon as reasonably practicable following the
later of the Effective Date or the date on which such Allowed Class
6(b) Claim becomes Allowed. Distributions to Holders of Allowed
Class 6(b) Claims shall be made in full and complete satisfaction,
settlement, discharge, and release of the Allowed Class 6(b)
General Unsecured Claims. Class 6(b) is Impaired.
* Class 6(c) consists of all General Unsecured Claims against
TS Holdings. Each Holder of an Allowed Class 6(c) General Unsecured
Claim shall receive, in Cash, a Pro Rata Share of the Unsecured
Claim Distribution Amount as soon as reasonably practicable
following the later of the Effective Date or the date on which such
Allowed Class 6(c) Claim becomes Allowed. Distributions to Holders
of Allowed Class 6(c) Claims shall be made in full and complete
satisfaction, settlement, discharge, and release of the Allowed
Class 6(c) General Unsecured Claims. Class 6(c) is Impaired.
* Class 6(d) consists of all General Unsecured Claims against
TS. Each Holder of an Allowed Class 6(d) General Unsecured Claim
shall receive, in Cash, a Pro Rata Share of the Unsecured Claim
Distribution Amount as soon as reasonably practicable following the
later of the Effective Date or the date on which such Allowed Class
6(d) Claim becomes Allowed. Distributions to Holders of Allowed
Class 6(d) Claims shall be made in full and complete satisfaction,
settlement, discharge, and release of the Allowed Class 6(d)
General Unsecured Claims. Class 6(d) is Impaired.
Class 8 consists of all Equity Interests in the Debtors. Holders of
Equity Interests in the Debtors shall retain such Equity Interests.
Class 8 is Unimpaired. Holders of Equity Interests are not entitled
to vote to accept or reject the Plan.
Upon the Effective Date, as set forth in the AAVIN Amendment, the
AAVIN Prepetition Credit Documents shall be amended to provide for
the assumption and payment of the DIP Claim, which shall, except as
expressly provided herein, be governed by the terms of the AAVIN
Prepetition Credit Documents. On the Effective Date, AAVIN shall
deposit the Unsecured Claim Distribution Amount into a segregated
account in the name of the Reorganized Debtors, which shall be used
for the sole purpose of funding Pro Rata Distributions to Holders
of Allowed General Unsecured Claims.
The Debtors shall reserve sufficient Cash on the Effective Date to
pay all Administrative Expense Claims, Other Secured Claims,
Priority Tax Claims, Priority Non-Tax Claims and Cure amounts in
the Maximum Amount. All Cash remaining on reserve after all
Administrative Expense Claims, Priority Tax Claims, Priority Non
Tax Claims and Cure amounts have been either Disallowed or Allowed
and paid in accordance with the Plan will vest in the Reorganized
Debtors.
The Reorganized Debtors shall further use Cash to make
Distributions to AAVIN and LK Diversified in connection with the
Allowed DIP Claim, Allowed AAVIN Secured Claim and Allowed LK
Diversified Seller Note Claim, respectively, in the ordinary course
as such payments come due pursuant to the terms of the AAVIN Loan
and Investment Agreement and Seller Note, as applicable.
The Reorganized Debtors will continue to operate with the primary
purpose of conducting their restaurant business.
A full-text copy of the Subchapter V Plan dated December 1, 2022,
is available at https://bit.ly/3Y4ZhQs from PacerMonitor.com at no
charge.
Counsel to Debtors:
SAUL EWING LLP
Mark Minuti, Esq.
Monique B. DiSabatino, Esq.
1201 N. Market Street, Suite 2300
P.O. Box 1266
Wilmington, DE 19899
Telephone: (302) 421-6800
Email: mark.minuti@saul.com
monique.disabatino@saul.com
About HJ Dynamic Holdings
HJ Dynamic Holdings, LLC, TS Dynamic Holdings, LLC, Dynamic
Restaurant Acquisition, Inc. d/b/a Happy Joe's Pizza, and TS
Dynamic Acquisition, Inc. sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Del. Case No. 22-10837) on
September 2, 2022. In the petition signed by Thomas A. Sacco,
president and CEO, the Debtor disclosed up to $1 million in assets
and up to $10 million in liabilities.
Judge J. Kate Stickles oversees the case.
Mark Minuti, Esq., at Saul Ewing Arnstein & Lehr, LLP is the
Debtor's counsel.
AAVIN Mezzanine Fund, LP and AAVIN Equity Partners II, LLP, as DIP
Lenders, are represented by Reinhart Boerner Van Deuren s.c and
Ashby & Geddes, P.A.
HOBBS WOOD: Case Summary & Three Unsecured Creditors
----------------------------------------------------
Debtor: Hobbs Wood Logistics, Inc.
101 Northgate Preserve Drive
Newnan, GA 30265
Business Description: The Debtor operates as an express delivery
services provider.
Chapter 11 Petition Date: December 7, 2022
Court: United States Bankruptcy Court
Northern District of Georgia
Case No.: 22-11360
Judge: Hon. Paul Baisier
Debtor's Counsel: Will Geer, Esq.
ROUNTREE, LEITMAN, KLEIN & GEER, LLC
2987 Clairmont Road Suite 350
Atlanta, GA 30329
Tel: 678-587-8740
Email: wgeer@rlkglaw.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Troy Wood as CEO.
A full-text copy of the petition containing, among other items, a
list of the Debtor's three unsecured creditors is available for
free at PacerMonitor.com at:
https://www.pacermonitor.com/view/PTZSXPQ/Hobbs_Wood_Logistics_Inc__ganbke-22-11360__0001.0.pdf?mcid=tGE4TAMA
HOBBY LOBBY MARINE: Starts Subchapter V Bankruptcy Case
-------------------------------------------------------
Hobby Lobby Marine LLC filed for chapter 11 protection in the U.S.
Bankruptcy Court for the District of New Jersey. The Debtor
elected on its voluntary petition to proceed under Subchapter V of
chapter 11 of the Bankruptcy Code.
According to court filings, Hobby Lobby Marine estimated $1 million
to $10 million in debt owed to 1 to 49 creditors. The petition
states that funds will be available to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
Jan. 5, 2023, at 2:00 PM at Telephonic. Proofs of claim are due by
Feb. 6, 2023.
The Debtor 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 rents 84 slips to customers, provides storage solutions, and
provides repair and other customary marine services.
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 or about
July 12, 2021. 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 was valued at $3,500,000. The Debtor believes that 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. The bankruptcy was filed to allow the Debtor to maximize
value for all creditors by consummating either a restructuring or a
sale of the business.
About Hobby Lobby Marine
Located in a quiet, secluded basin in Toms River, NJ, Hobby Lobby
Marine LLC has been family owned & operated since 1961 with
award-winning sales & service departments. HLM is a marina with
summer slips, winter storage, outboard service & repower offers.
On the Web: https://www.hobbylobbymarine.com/
Hobby Lobby Marine filed a petition for relief under Subchapter V
of Chapter 11 of the Bankruptcy Code (Bankr. D.N.J. Case No.
22-19381) on Nov. 28, 2022. In the petition filed by Robert Tweer,
as co-managing member, the Debtor reported assets and liabilities
between $1 million and $10 million.
Holly Smith Miller has been appointed as Subchapter V trustee.
The Debtor is represented by:
Douglas T Tabachnik, Esq.
Law Offices of Douglas T Tabachnik, PC
1423 Bay Avenue
Toms River, NJ 08753
HOLONG CS: Unsecureds to Recover Up to 100% in Liquidating Plan
---------------------------------------------------------------
Holong CS, LLC filed with the U.S. Bankruptcy Court for the
Southern District of Texas a Plan of Liquidation dated December 1,
2022.
The Debtor owns a Country Suites hotel in Houston, Texas (the
"Property").
The Plan is a liquidating plan. The Debtor is in the process of
employing a real estate broker and selling the Property. This Plan
proposes to sell all Assets of the Debtor, including the Property,
for fair market value and use the proceeds to pay Allowed Claims in
the order of priority authorized under the Bankruptcy Code, to the
extent cash is available. The sale of the Debtor's Assets will
occur no later than 6 months following the Effective Date of the
Plan.
Class 1 consists of Allowed Secured Claim of Harris County. This
Claim shall be paid in full in one lump sum payment out of the
proceeds of the sale of the Collateral securing this Claim no later
than 6 months after the Effective Date. Interest shall begin to
accrue as of the Petition Date at the rate of 12% per annum. Should
the Debtor not sell the Collateral securing this Claim within 6
months from the Effective Date, this Claimant shall be free to
exercise all its statutory remedies.
Class 2 consists of Allowed Secured Claim of Guaranty Bank & Trust,
N.A. This Claim shall be paid in full, to the extent cash is
available after payment of Class 1, in one lump sum payment out of
the proceeds of the sale of the Collateral securing this Claim no
later than 6 months after the Effective Date. Interest shall begin
to accrue at the rate of 7% per annum as of the Effective Date.
Should the Debtor not sell the Collateral within 6 months from the
Effective Date, this Claimant shall be free to exercise all its
remedies under its pre-Petition Date loan agreements with the
Debtor.
Class 3 consists of Allowed General Unsecured Claims. Class 3 shall
consist of Allowed Unsecured Claims other than the Claims of Class
4 Insiders. These Claims shall be paid Pro Rata, up to 100%, in one
lump sum payment out of the proceeds of the sale of the Property no
later than 6 months after the Effective Date, to the extent cash is
available after payment of Classes 1 and 2.
Class 5 consists of Equity Interests. All Equity Interests in the
Debtor shall be retained. This Class is not Impaired and is deemed
to have accepted the Plan.
Within 6 months after the Effective Date the Debtor will sell all
its Assets, including the Property, for fair market value and use
the funds raised by such sale, plus any other unencumbered funds
the Debtor may possess at the time of sale, to promptly pay all
Claims. This Plan will be substantially consummated by the
commencement of payments. Upon the Effective Date, all property of
the Debtor and its Estate shall vest in the Reorganized Debtor,
subject to the Allowed Secured Claims. The Debtor shall operate its
Assets in the ordinary course of business until the Assets are
sold.
A full-text copy of the Liquidating Plan dated December 1, 2022, is
available at https://bit.ly/3FxwSex 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
Fax: (972) 503-4034
Email: joyce@joycelindauer.com
About Holong CS
Holong CS LLC filed a petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. S.D. Tex. Case No. 22-32935) on Oct. 3,
2022. In the petition filed by Jack Kaphle, as manager, the Debtor
reported assets and liabilities between $1 million and $10
million.
Jarrod B Martin has been appointed as Subchapter V trustee.
The Debtor is represented by Joyce Williams Lindauer of Joyce W.
Lindauer Attorney, PLLC.
LASELL UNIVERSITY: S&P Lowers 2021 Revenue Bonds Rating to 'BB'
---------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating (ICR) on Lasell
University, Mass., and its long-term rating on Massachusetts
Development Finance Agency's series 2021 refunding revenue bonds
issued for the university to 'BB' from 'BB+'. The outlook is
negative.
"The rating downgrade reflects our view of Lasell's significant
enrollment declines and use of elevated extraordinary endowment
draws to balance its operating budget and meet debt covenants in
the last three years," said S&P Global Ratings credit analyst Ying
Huang.
S&P said, "The negative outlook reflects our opinion of the
elevated endowment appropriation ($12.2 million) budgeted on a
full-accrual basis for fiscal 2023 that, if materialized, would
materially weaken the already below-average available resources
ratios for the rating category and pressure the rating although
management doesn't expect to draw the full budgeted amount on a
cash basis. It also reflects our view of the likely continuation of
overall enrollment decline in fall 2023 despite favorable
year-to-date application data.
"We could consider a negative rating action during the outlook
period if enrollment continues to decline materially, resulting in
widening full-accrual deficit along with continued extraordinary
endowment spending; if available resources decrease materially from
the current levels such that they are no longer consistent with the
current ratings; or if the university were to issue additional debt
without commensurate growth in available resources. We could also
consider lowering the ratings if future covenant calculations
deteriorate to levels close to the covenant or if there is breach
of covenants that could result in acceleration of the university's
debt.
"We could revise the outlook back to stable if the university's
enrollment starts to stabilize, if its operating result remains
near break even without relying on significant extraordinary
endowment draws, and if the university sustains its balance sheet
ratios and stays in compliance with its debt covenants."
As of fiscal year-end 2022, total debt outstanding was $54.8
million.
LHOTSE CIS: Gets OK to Hire NewGen Advisory as Real Estate Broker
-----------------------------------------------------------------
Lhotse CIS, LLC received approval from the U.S. Bankruptcy Court
for the Southern District of Texas to employ NewGen Advisory CA,
Inc. as its real estate broker.
The Debtor needs to market and sell its real property operating as
the Comfort Suites Bush Intercontinental Hotel located at 15555
John F. Kennedy Blvd., in Houston.
The broker will receive as compensation 3 percent of the sales
price of the property.
As disclosed in court filings, NewGen Advisory is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
David Frank Bowman
NewGen Advisory CA, Inc.
1747 E Morten Ave STE 202
Phoenix, AZ 85020
Phone: +1 602-648-2700
Email: DBowman@newgenadv.com
About Lhotse CIS
Lhotse CIS, LLC operates the Country Inn & Suites located in
Houston, Texas.
Lhotse CIS filed a petition for relief under Subchapter V of
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Case No.
22-bk-32937) on Oct. 3, 2022, with between $1 million and $10
million in both assets and liabilities. Chris Quinn has been
appointed as Subchapter V trustee.
Judge Christopher M. Lopez oversees the case.
The Debtor is represented by Joyce Williams Lindauer of Joyce W.
Lindauer Attorney, PLLC.
LHOTSE CIS: Unsecureds to Recover Up to 100% in Liquidating Plan
----------------------------------------------------------------
Lhotse CIS, LLC, filed with the U.S. Bankruptcy Court for the
Southern District of Texas a Plan of Liquidation dated December 1,
2022.
The Debtor owns a Country Inn & Suites hotel in Houston, Texas (the
"Property").
The Plan is a liquidating plan. The Debtor is in the process of
employing a real estate broker and selling the Property. This Plan
proposes to sell all Assets of the Debtor, including the Property,
for fair market value and use the proceeds to pay Allowed Claims in
the order of priority authorized under the Bankruptcy Code, to the
extent cash is available. The sale of the Debtor's Assets will
occur no later than 6 months following the Effective Date of the
Plan.
Class 1 consists of the Allowed Secured Claim of Harris County.
This Claim shall be paid in full in one lump sum payment out of the
sale proceeds no later than 6 months after the Effective Date.
Interest shall begin to accrue as of the Petition Date at the rate
of 12% per annum. Should the Debtor not sell the Collateral
securing this Claim within 6 months from the Effective Date, this
Claimant shall be free to exercise all its statutory remedies.
Class 2 consists of the Allowed Secured Claim of Guaranty Bank &
Trust, N.A. This Claim shall be paid in full, to the extent cash is
available after payment of Class 1, in one lump sum payment out of
the proceeds of the sale of the Collateral securing this Claim no
later than 6 months after the Effective Date. Interest shall begin
to accrue at the rate of 7% per annum as of the Effective Date.
Should the Debtor not sell the Collateral within 6 months from the
Effective Date, this Claimant shall be free to exercise all its
remedies under its pre-Petition Date loan agreements with the
Debtor.
Class 3 consists of Allowed General Unsecured Claims. Class 3
shall consist of Allowed Unsecured Claims other than the Claims of
Class 4 Insiders. These Claims shall be paid Pro Rata, up to 100%,
in one lump sum payment out of the proceeds of the sale of the
Property no later than 6 months after the Effective Date, to the
extent cash is available after payment of Classes 1 and 2.
Class 5 consists of Equity Interests. All Equity Interests in the
Debtor shall be retained. This Class is not Impaired and is deemed
to have accepted the Plan.
Within 6 months after the Effective Date the Debtor will sell all
its Assets, including the Property, for fair market value and use
the funds raised by such sale, plus any other unencumbered funds
the Debtor may possess at the time of sale, to promptly pay all
Claims. This Plan will be substantially consummated by the
commencement of payments. Upon the Effective Date, all property of
the Debtor and its Estate shall vest in the Reorganized Debtor,
subject to the Allowed Secured Claims described in this Plan. The
Debtor shall operate its Assets in the ordinary course of business
until the Assets are sold.
A full-text copy of the Liquidating Plan dated December 1, 2022, is
available at https://bit.ly/3Y7atMf 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
Fax: (972) 503-4034
Email: joyce@joycelindauer.com
About Lhotse CIS
Lhotse CIS LLC operates a Country Inn & Suites located in Houston,
Texas. The Debtor filed a petition for relief under Subchapter V of
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Case No.
22-bk-32937) on Oct. 3, 2022. In the petition filed by Jack
Kaphle, as manager, the Debtor reported assets and liabilities
between $1 million and $10 million.
Chris Quinn has been appointed as Subchapter V trustee.
The Debtor is represented by Joyce Williams Lindauer of Joyce W.
Lindauer Attorney, PLLC.
LOTUS SKY: Unsecureds Will Get 25% of Claims over 60 Months
-----------------------------------------------------------
Lotus Sky, LLC, filed with the U.S. Bankruptcy Court for the
Northern District of Texas a Plan of Reorganization under
Subchapter V dated December 1, 2022.
The Debtor owns and operates the OYO Hotel Amarillo a/k/a Red Roof
Inn Amarillo located in Amarillo, Texas.
The Debtor is in the process of changing its franchise brand for
the hotel and has filed a motion seeking authority to assume a new
franchise agreement with Sonesta RL Hotels Franchising, Inc. to
operate as an America's Best Value Inn.
The Debtor's revenue has declined during the COVID-19 pandemic,
which led to the Debtor's inability to fully service its debt and
ultimately lead to the filing of the Chapter 11 case. According to
the Debtor's schedules, the Debtor's liabilities (excluding
Administrative Expense Claims) totaled $3,115,175 as of the
Petition Date. Creditors may file Proofs of Claim that differ from
the amounts shown in the Schedules. The Debtor scheduled total
Unsecured Claims of $218,883.
Under this Plan, all Secured Creditors will receive payment of 100%
of their Allowed Claims, and Unsecured Creditors will receive 25%
of their Claims. Therefore, pursuant to the liquidation analysis
all Creditors will receive at least as much under this Plan as they
would in a Chapter 7 liquidation.
Class 1 consists of the Allowed Secured Claim of Potter County.
This Claim shall be paid in full in equal monthly installments of
principal with interest thereon at the rate of 12% per annum.
Payments will commence on the first day of the first month
following the Effective Date and continue until the expiration of
60 months from the Petition Date. Interest shall begin to accrue on
the Petition Date. This Claim is Impaired, and the holder of this
Claim is entitled to vote to accept or reject the Plan.
Class 2 consists of the Allowed Secured Claim of New Millennium
Bank. Class 2 shall consist of the Allowed Secured Claim of New
Millennium Bank (the "Bank") in the amount of $2,880,638.23,
subject to an objection to claim (the "Class 2 Claim" or the
"Allowed Secured Claim"). Debtor will pay the Allowed Secured Claim
in the amount of $1,250,000.00. The Claim will be paid with a
25-year amortization at an interest rate of 6% per annum as of the
Confirmation Date with a balloon payment in year 20 in the
projected amount of $947,733.43. The estimated monthly payment
amount of principal and interest is $8,053.77. The Class 2 Creditor
shall be secured for an Allowed 1111(b) Claim on the Debtor's real
property described in its loan documents and mortgage (the
"Collateral"), in the amount of $2,880,638.23 as of Confirmation
Date ("Allowed 1111(b) Claim"). The Bank shall have no unsecured
claim.
The plan proposes to pay the Class 2 Claim at $8,053.77 per month
based on a 25-year amortization and 6% annual percentage rate.
Payments shall be made on the 15th day of the month for 240 months.
If the Effective Date occurs after the 15th day of the month, the
first payment shall be due on the 15th day of the following month.
The Plan also repays the entire Allowed Class 2 Claim by totaling
all payments being made and making sure they equal no less than the
full Allowed Secured Claim. Payments shall credit against the full
Allowed 1111(b) Claim as they are made. At any point in time the
Debtor must pay the greater of the remaining amount of the Allowed
Secured Claim or the unpaid balance of the Allowed 1111(b) Claim
(less payments made). The Bank shall retain its lien to secure its
Allowed Secured Claim until paid in full under this Plan.
Class 3 consists of the Allowed Secured Claim of U.S. Small
Business Administration. This Claim shall be treated as an
unsecured claim in Class 4. This Claim is Impaired, and the holder
of this Claim is entitled to vote to accept or reject the Plan.
Class 4 consists of Allowed General Unsecured Claims: Class 4
Claimants shall be paid 25% of their Claims over 60 months from the
Effective Date, without interest. These Claims will be paid in
equal monthly installments commencing on the first day of the first
month following the Effective Date and continuing on the first day
of each month thereafter. These Claims are Impaired, and the
holders of these Claims are entitled to vote to accept or reject
the Plan.
Class 5 consists of Equity Interests. Class 5 Equity Interests
shall be retained.
The Debtor intends to make all payments required under the Plan
from available cash and income from the business operations of the
Debtor.
A full-text copy of the Plan of Reorganization dated December 1,
2022, is available at https://bit.ly/3VIIXDh 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
Telephone: (972) 503-4033
Facsimile: (972) 503-4034
Email: joyce@joycelindauer.com
About Lotus Sky
Lotus Sky, LLC is a company in Amarillo, Texas, which operates in
the traveler accommodation industry.
Lotus Sky sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. N.D. Texas Case No. 22-31618) on Sept. 2, 2022, with
up to $10 million in both assets and liabilities. Kunal Patel,
owner, signed the petition.
Judge Michelle V. Larson oversees the case.
Joyce Lindauer, Esq., at Joyce W. Lindauer Attorney, PLLC and
Bowers & Shenk serve as the Debtor's legal counsel and accountant,
respectively.
MARLIN KRIDER: Seeks Cash Collateral Access
-------------------------------------------
Marlin Krider Land and Timber, Inc. asks the U.S. Bankruptcy Court
for the Western District of North Carolina, Statesville Division,
for authority to use cash collateral in the ordinary course of
business in accordance with the budget, with a 10% variance.
According to the North Carolina Secretary of State website, three
entities have filed UCC financing statements against the Debtor to
perfect alleged debts:
a. No. 20180030090E, filed by Skyline National Bank claims a
blanket lien on all the Debtor's equipment. The Debtor believes
this lien -- while not disclosed at the time of signing documents
-- was taken when the Debtor refinanced loans from other lenders
and vendors.
b. No. 20200070418F, filed by the Small Business
Administration claims a blanket lien on all the Debtor's assets.
The Debtor believes this financing statement relates to an Economic
Injury Disaster Loan provided by the SBA during the COVID-19
pandemic.
c. No. 20200172711E, filed by Komatsu Financial Limited
Partnership claims a lien on a Caterpillar 522B Track Feller
Buncher complete with attachments, accessories, replacement parts,
additions and all proceeds thereof.
However, the majority of the funds in the Debtor's bank account are
traceable to the sale of a wood processor for $135,000.
As adequate protection, the Debtor proposes to provide the
creditors with replacement liens in post-petition assets to the
same extent and priority as existed pre-petition.
Skyline National Bank, N.A. and SBA have over $500,000 worth of
business equipment securing their loans. Skyline has liens against
an additional 18 acres of property. The Debtor believes the real
property to be worth between $180,000 and $400,000.
A copy of the motion is available at https://bit.ly/3VEtggx from
PacerMonitor.com.
About Marlin Krider Land and Timber, Inc.
Marlin Krider Land and Timber, Inc. sought protection under Chapter
11 of the U.S. Bankruptcy Code (Banrkr. W.D. N.C. Case No.
22-50256) on November 9, 2022. In the petition signed by Marlin
Kelly Krider, owner, the Debtor disclosed up to $500,000 in assets
and up to $1 million in liabilities.
Thomas C. Flippin, Esq., at the Law Offices of Thomas C. Flippin,
is the Debtor's legal counsel.
MESA TERRACE: Trustee Gets OK to Tap Transcend as Property Manager
------------------------------------------------------------------
Michael Carmel, the trustee appointed in the Chapter 11 case of
Mesa Terrace Condominium Association, received approval from the
U.S. Bankruptcy Court for the District of Arizona to employ
Transcend Community Management as property manager.
The trustee requires a property manager for the Debtor's property
located at 1224 East Evergreen, Mesa, Ariz.
Transcend Community Management will receive a monthly fee of
$1,295.
The firm can be reached at:
Transcend Community Management
3100 W. Ray Road, Suite 201
Chandler, AZ 85226
Telephone: (480) 750-7075
Email: info@transcendhoa.com
About Mesa Terrace Condominium Association
Mesa Terrace Condominium Association filed a petition under Chapter
11, Subchapter V of the Bankruptcy Code (Bankr. D. Ariz. Case No.
22-04590) on July 14, 2022, with up to $1 million in both assets
and liabilities. Michael W. Carmel has been appointed as Subchapter
V trustee.
Judge Brenda Moody Whinery oversees the case.
D. Lamar Hawkins, Esq., at Guidant Law, PLC serves as the Debtor's
counsel.
MICROVISION INC: To Acquire Ibeo Assets for EUR 15 Million
----------------------------------------------------------
MicroVision, Inc. said it has signed an agreement to acquire
certain assets from Hamburg, Germany-based, Ibeo Automotive Systems
GmbH, for up to 15 million euros. The acquisition combines MAVIN
lidar with Ibeo perception software features into the MicroVision
ASIC for automotive OEMs. In addition, this acquisition expands
MicroVision's multi-market strategy focusing on industrial, smart
infrastructure, robotics, and commercial vehicle segments with
Ibeo's flash-based sensor. The combined company is expected to
have revenue streams from existing and new product lines ranging
from software, Ibeo's flash-based lidar and MicroVision's scanning
lidar sensor, as well as other combinations of hardware with
perception software solutions.
Ibeo Automotive Systems GmbH is a well-established lidar hardware
and software provider with the team that developed and launched the
SCALA sensor into serial production with a Tier 1 that is today
used by premium OEMs like Audi, Mercedes and Stellantis and
software solutions used by BMW and VW, to name a few. The
experienced Ibeo team has also innovated in OEM qualified software
including auto-annotation, validation, and perception solutions.
They have also done advanced development in software required for
autonomous driving (AD). Microvision said Ibeo has a very
impressive team, and the combined company has a common DNA in
innovation and execution, with more than 700 patents globally.
Under the terms of the asset purchase agreement, MicroVision will
acquire certain Ibeo assets, IP, and teams to operate within the
MicroVision organization as of the closing date. The acquisition
includes highly talented and experienced engineering teams,
revenue-producing hardware and software businesses, and
automotive-focused and multi-market business development and sales
professionals.
"This is an exciting time as we welcome the Ibeo team to the
MicroVision family. We believe this is the winning combination to
accelerate our strategic plan at the exact right time. Our
best-in-class hardware solution paired with existing perception
features added to our ASIC, accelerated by the Ibeo software and
automotive qualification experience, presents a significantly
advanced solution for OEM," said Sumit Sharma, CEO of MicroVision.
"I'm also very excited about the immediate expansion of our
multi-market strategy with Ibeo's sensor and hardware."
Continued Sharma, "This allows us to expand our total addressable
market beyond automotive and diversify our revenue profile."
The closing of the acquisition, expected to occur during the first
half of 2023, is subject to regulatory clearance from the German
Ministry of Economics and Climate Protection.
MicroVision was advised by Rodl & Partner as transaction advisor,
Baker McKenzie as legal advisor, and Deloitte as financial
advisor.
The acquisition will enable MicroVision to accelerate its timeline
around the delivery of a complete lidar and perception software
solution. MAVIN DR, the dynamic range lidar sensor introduced by
MicroVision in 2022, offers the smallest form factor, highest
resolution point cloud, and low latency making it the most suitable
sensor for OEM roofline deployments.
Ibeo's mature perception software, will be ported into the
MicroVision digital ASIC with compatibility demonstrations
available by early Q2 2023. Ibeo's perception software has
successfully passed through qualification processes with OEMs,
allowing MicroVision to accelerate the product path.
Together, MicroVision's MAVIN lidar hardware and Ibeo's mature
software will position MicroVision as a leading hardware and
perception software partner to OEMs.
This acquisition also allows MicroVision to accelerate its
multi-market strategy in industrial, smart infrastructure,
robotics, and commercial vehicle segments with Ibeo's flash-based
sensor and software.
Through this acquisition and combined synergy, MicroVision expects
revenue from a wider range of product lines ranging from hardware
sales from the MAVIN sensor, Ibeo's existing legacy LUX sensor and
its first-generation flash lidar, royalties from Ibeo's legacy
SCALA sensor, along with Ibeo's auto-annotation, validation,
perception software and AD software used by OEMs and other partners
today.
The forecasted revenue of $8 to $15 million is expected from new
and existing customers, including top-tier German and U.S. OEMs as
well as non-automotive multi-market customers.
MicroVision expects to expand on Ibeo's relationship with ZF
Friedrichshafen AG, an established Tier 1 partner to OEMs, to
manufacture the MAVIN lidar sensor.
ZF has been producing lidar systems on behalf of Ibeo since 2020
providing deliveries to Great Wall Motor, China's largest SUV and
pickup manufacturer. This highly automated production line has the
capability to supply sensors to automotive OEMs and non-automotive
customers.
MicroVision said adding Ibeo's engineering, sales, and marketing
capabilities in Germany and the United States will enhance
MicroVision's position as a global leader in lidar hardware and
software solutions provider. The combined engineering teams in
Hamburg, Nuremberg and Redmond, Washington will continue developing
lidar hardware, perception software, ASIC, auto-annotation
software, and other innovative ADAS and autonomous driving
products.
About MicroVision
Microvision, Inc. -- http://www.microvision.com-- is a pioneering
company in MEMS based laser beam scanning technology that
integrates MEMS, lasers, optics, hardware, algorithms and machine
learning software into its proprietary technology to address
existing and emerging markets. The Company's integrated approach
uses its proprietary technology to provide solutions for automotive
lidar sensors, augmented reality micro-display engines, interactive
display modules and consumer lidar modules.
MicroVision reported a net loss of $43.20 million for the year
ended Dec. 31, 2021, a net loss of $13.63 million for the year
ended Dec. 31, 2020, a net loss of $26.48 million for the year
ended Dec. 31, 2019, and a net loss of $27.25 million for the year
ended Dec. 31, 2018. As of Sept. 30, 2022, the Company had $109.39
million in total assets, $23.77 million in total liabilities, and
$85.62 million in total shareholders' equity.
MWH TRUCKING: Seeks to Hire Narron Wenzel as Bankruptcy Counsel
---------------------------------------------------------------
MWH Trucking, LLC seeks approval from the U.S. Bankruptcy Court for
the Eastern District of North Carolina to employ Narron Wenzel, PA
as counsel.
The firm will render these services:
(a) advise the Debtor with respect to its powers and duties in
the continued operation of its business and management of its
property;
(b) prepare legal papers;
(c) perform all other legal services for the Debtor that may
be necessary in this proceeding;
(d) take necessary action, if any, to avoid liens against the
Debtor's property obtained by creditors and to recover preferential
payments made within 90 days of the filing of said Chapter 11
petition; and
(e) make a detailed search of the records of the Granville
County Register of Deeds and office of the Clerk of Superior Court
to determine the validity of all liens filed against the property
of the Debtor.
The hourly rates of the firm's counsel and staff are as follows:
David F. Mills $350
Benjamin E. Lovell $350
Non-attorney staff $120
In addition, the firm will seek reimbursement for expenses
incurred.
David Mills, Esq., an attorney at Narron Wenzel, 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:
David F. Mills, Esq.
Narron Wenzel, PA
P.O. Box 1567
102 S. Third Street
Smithfield, NC 27577
Telephone: (919) 934-0049
Facsimile: (919) 938-1058
Email: dmills@narronwenzel.com
About MWH Trucking
MWH Trucking, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.C. Case No. 22-02578) on Nov. 9,
2022, with up to $1 million in both assets and liabilities. Judge
David M. Warren oversees the case.
David F. Mills, Esq., at Narron Wenzel, PA serves as the Debtor's
counsel.
NEW YORK COMMUNITY BANCORP: S&P Affirms 'BB+' Issuer Credit Rating
------------------------------------------------------------------
S&P Global Ratings assigned its 'BBB-' issuer credit rating to
Flagstar Bank N.A. and affirmed its 'BB+' issuer credit rating on
New York Community Bancorp (NYCB). The outlook on the ratings is
positive. S&P also withdrew its 'BBB-' issuer credit rating on New
York Community Bank, which was merged into Flagstar concurrent with
the closing of the merger.
The rating actions follow the merger of NYCB and Flagstar Bancorp
on Dec. 1, 2022.Following the merger, Flagstar Bank N.A. and NYCB
are the surviving bank and holding company entities after New York
Community Bank and Flagstar Bancorp, respectively, were merged into
them. The consolidated company has approximately $88 billion in
total assets, $65 billion in loans, $58 billion in deposits and
operates 395 branches in nine states.
S&P said, "We expect the consolidated organization will have
broader revenue, product, and geographic diversification, which
supports our positive outlook. The acquisition expands NYCB's
presence into Michigan, Ohio, Indiana, Wisconsin, and California,
and adds national business lines, including mortgage and mortgage
warehouse lending. The addition of Flagstar should also
substantially improve the contribution of noninterest revenue to
total revenue (38% pro-forma for the first nine months of 2022
versus 4% for legacy NYCB). We believe reduced reliance on net
interest income should help earnings remain stable over economic
cycles, although this is partly offset by the preponderance of fee
income from cyclical mortgage banking income.
"Nonetheless, there are integration challenges, and mortgage
banking has been hurt by higher interest rates. We believe that the
positive factors associated with the acquisition will take time to
materialize, thus supporting our rating affirmation. We view the
complexity of this merger as somewhat heightened as integration
challenges could arise given the disparate markets and the addition
of Flagstar's nontraditional national business lines. Higher
interest rates have also hurt legacy Flagstar's mortgage banking
business, with originations down 35% for the first nine months of
2022, versus the same period in 2021. Positively, NYCB will retain
experienced senior executives at Flagstar--like in mortgage banking
and commercial banking--which should aid the transition, and,
importantly, help growth and stability in those businesses. Both
banks use the same core system provider, which should lessen
operational risks, in our view.
"The positive outlook indicates we could raise our ratings on NYCB
by one notch over the next two years if the company successfully
integrates Flagstar and can translate the improved revenue and
geographic diversity into more stable revenues and a stronger
business profile. We would also look for NYCB to maintain adequate
capital and successfully manage the operational risks associated
with its major businesses. We also factor in our expectation that
although asset quality could weaken in a recession, it will remain
resilient and in line with its excellent track record.
"Alternatively, we could revise the outlook to stable if
nonperforming assets or net charge-offs rise substantially,
unexpected risks emerge in Flagstar's mortgage banking business, or
integration risk from the acquisition poses management,
operational, or financial issues."
ESG credit indicators: E-2, S-2, G-2
NEWTON CONSTRUCTION: Unsecureds to be Paid in Full in 60 Months
---------------------------------------------------------------
Newton Construction LLC filed with the U.S. Bankruptcy Court for
the District of Nevada a Plan of Reorganization for Small Business
under Subchapter V.
The Debtor is an LLC. Since August 2018, the Debtor has been in the
business of constriction.
The final Plan payment is expected to be paid on January 1, 2028.
Class 2 consists of Secured Claims:
* Class 2a consists of the claim of Ally Bank. This claim is
based owed on automobile loan for 2021 Ford F550. Debtor will pay
$1,281.59 monthly payment. The ongoing (contractual payments) to
Ally until balance is paid in full of $57,097.13.
* Class 2b consists of the claim of Kalamata Capital Group.
Kalamata has a $55,375 claim secured by accounts receivable
pursuant to the UCC-1 Security Interest filed by Kalamata. $55,375
will be paid over 36 months at 5% interest. Payment will be
$1648.40 monthly.
* Class 2c consists of the claim of ENod Capital. EN OD
Capital has $27,500 claim in accounts receivable pursuant to UCC-1
Security Interest filed by ENod Capital. $27,394.34 paid over 36
months at 5% = $821.03 monthly payment.
* Class 2d consists of the claim of the Internal Revenue
Service. This Creditor has a secured claim pursuant to a lien filed
on June 30, 2022. Claim is $48,105.40. Claim will be paid over the
next sixty months until paid in full.
Class 3 consists of Non-priority unsecured creditors. The general
unsecured class will be paid from available disposable income. The
plan is to pay in full over next 60 months.
Class 4 consists of Equity security holders of the Debtor. John
Newton is the managing member of the debtor. As a Subchapter V
class, the absolute priority rule does not apply.
A full-text copy of the Plan of Reorganization dated December 1,
2022, is available at https://bit.ly/3UE4AU1 from PacerMonitor.com
at no charge.
About Newton Construction LLC
Newton Construction LLC is a general contractor in North Las Vegas,
Nevada.
Newton Construction filed a petition for relief under Subchapter V
of Chapter 11 of the Bankruptcy Code (Bankr. D. Nev. Case No.
22-13186) on Sept. 3, 2022. In the petition filed by John Newton,
the Debtor reported assets between $100,000 and $500,000 and
liabilities between $500,000 and $1 million.
The Law Office of Corey B. Beck P.C. is the Debtor's counsel.
NORTH FORK: Taps Bocarsly as Special Tax Counsel
------------------------------------------------
North Fork Community Power, LLC seeks approval from the U.S.
Bankruptcy Court for the Northern District of California to employ
Bocarsly Emden Cowan Esmail & Arndt LLP as special tax counsel.
The Debtor needs a special tax counsel in connection with the
transfer of notes in its "New Markets Tax Credit" transactions.
Robert Cowan, Esq., a partner at Bocarsly, will be billed at his
hourly rate of $505.
Due to the Debtor's pending bankruptcy, the firm requires a $25,000
post-petition retainer.
Mr. Cowan disclosed in a court filing that his firm is a
"disinterested person" within the meaning of Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Robert Cowan
Bocarsly Emden Cowan Esmail & Arndt, LLP
633 West Fifth Street, 64th Floor
Los Angeles, CA 90071
Telephone: (213) 239-8051
Facsimile: (213) 239-0410
Email: rcowan@bocarsly.com
About North Fork Community Power
North Fork Community Power, LLC sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. N.D. Calif. Case No. 22-41001)
on Oct. 11, 2022. In the petition signed by Gregory J. Stangl,
authorized agent, the Debtor disclosed up to $50 million in both
assets and liabilities.
Judge Roger L. Efremsky oversees the case.
John H. MacConaghy, Esq., and Jean Barnier, Esq., at MacConaghy &
Barnier, PLC, serve as the Debtor's attorneys. Robert Cowan, Esq.,
at Bocarsly Emden Cowan Esmail & Arndt LLP is the Debtor's special
tax counsel.
NRG ENERGY: S&P Places 'BB+' Issuer Credit Rating on Watch Neg.
---------------------------------------------------------------
S&P Global Ratings placed its 'BB+' issuer credit rating on NRG
Energy Inc. on CreditWatch with negative implications. The
CreditWatch reflects the potential for a downgrade of no more than
one notch.
S&P does not expect the transaction to have any effect on its
'BBB-' issue-level rating on NRG's senior secured debt.
S&P said, "We placed our 'BB+' issuer credit rating on NRG Energy
Inc. on CreditWatch negative following its announcement that it is
acquiring Vivint, a smart home company serving subscribers across
the U.S. While it has yet to finalize its financing for the
transaction, we expect NRG will largely fund the acquisition with
debt. Over the next few months through the close of the
acquisition, we will review NRG's financing plan to determine its
eventual effect on our ratings. The CreditWatch placement indicates
that any potential downgrade would be limited to no more than one
notch. Based on their overcollateralization, we do not expect the
transaction will have any effect on our 'BBB-' issue-level rating
on the company's senior secured debt."
S&P does not expect the transaction will effect NRG's business risk
profile.
The acquisition of Vivint will result in the proportion of
aggregate EBITDA that NRG derives from its retail power business to
be about 55%-60%, with home services also contributing about
15%-20%. S&P said, "We see the competitive position of the pro
forma company as equally weighted between the unregulated power
sector and the business and consumer services sectors. Over time,
we expect the proportion of NRG's revenue that it derives from the
business and consumer services sector to rise to more than 70% as
it continues to pivot toward home services. Despite these
adjustments, we expect our assessment of its business risk profile
will remain satisfactory. We see the potential benefits of
unlocking higher customer lifetime value (CLV) through cross
selling, the bundling of its products offerings, and the extension
of its contract tenors. However, we also see execution risks amid a
potentially recessionary environment and will continue to monitor
the company's ability to match its load with its generation if the
demand from Vivint's customers increases its retail load and
further pressures its load balancing."
S&P sees the following factors as important credit drivers in the
transaction.
The transaction will increase the company's scale and geographic
diversity.
S&P said, "The acquisition will further NRG's announced shift
toward becoming a home solutions provider. Specifically, we see the
move as consistent with its pivot to an asset-light, customer
-facing business model and believe it will accelerate its strategy
of becoming a national provider of essential home services.
Following the transaction, we would assess NRG as an integrated
power and home products provider that offers a portfolio of bundled
smart home solutions to its customers. The transaction would also
add nearly 2 million customers to NRG's existing 6 million home
customers and enable it establish a national footprint. We believe
these factors will reinforce the company's scale, scope, and
diversity."
The expansion of NRG's capital-lite consumer services segment will
potentially increase its home business penetration, though S&P
views it as entailing tangible execution risks.
The acquisition of Vivint will enable the pro forma company to
leverage a common platform and integrate complimentary services to
enhance its customer value. Specifically, S&P sees the following
benefits:
-- The development of a high-capacity call center, billing, and
customer service platform that could lead to lower-cost operations
for its customers;
-- A complementary smart home product portfolio that it can
provide as a bundled offering; and
-- Combined sales channels would enable cross-selling
opportunities and potentially lead to an increase in the CLV from
its multi-product customers through incremental margin improvements
and extended contract tenors.
S&P sees the company benefiting from extending its average customer
life and the average contract tenor of its new customers, as well
as lowering its customer cost of acquisition by bundling its
services.
Despite these factors, the company's asset-light strategy will face
a market experiencing supply chain disruptions and higher prices.
An asset-light strategy (limited excess generation length) is
beneficial in low-price environments but has shown vulnerabilities
amid commodity upcycles when facing operational issues. Despite a
second straight year of disruptions in its coal supply (Limestone,
Parish), management remains confident in its supply strategy and
customer-focused business model. However, demand in the ERCOT
region has been high and the first 1.3 gigawatts (GW) of renewable
power purchase agreements (PPAs), out of the 2.5 GW that NRG has
contracted to serve its retail growth, have been slow to come
online. Logistical delays in its coal deliveries have only
compounded the challenge of matching its supply with its load. The
company had to replace this lost generation by purchasing energy at
higher market prices to serve its retail obligations. While NRG
characterizes such variances as transient or temporary, these
instances underscore the risks of its asset-light strategy, which
could become even lighter as it cross-sells retail power to
Vivint's customers.
The year has been challenging and NRG has underperformed. The
company also has higher operating leverage than its peers.
The company's EBITDA was lower than anticipated in 2022, partly due
to revisions in its business strategy (asset sales, closures etc.)
but also from execution risks related to a tight load-to-generation
match.
NRG's results were down because the outage at its Parish plant
coincided with a very hot summer and its asset sales and higher
ancillary costs weighed on its performance. S&P said, "We believe
its plant insurance will defray much of the equipment costs that
NRG is currently incurring and anticipate its business insurance
will further mitigate the impact on its results. The company's
results were also negatively affected by its reduced cash flow due
to higher working capital stemming from elevated commodity prices
and inventory levels. NRG's free operating cash flow (FOCF) was
still significant despite the higher maintenance spending related
to the Parish plant and the elevated commodity price environment
(partly because of reimbursement related to the severe weather in
Texas during winter 2021). We note that compared with its own
expectation for 2022 (in 2020 when the Direct energy transaction
closed), the company's adjusted debt to EBITDA is lower by about
0.5x."
NRG's management assumes the challenges it has faced in 2022 will
dissipate and that Parish will have a neutral effect on its
performance going forward. In the first half of 2023, management
expects the proceeds from its business insurance will offset the
effects on its cash flow stemming from the plant shutdown and its
increased equipment costs. However, S&P thinks NRG continues to
face some operational risks.
The company remains significantly cash flow positive supported by
its strong cash flow conversion rates.
The core retail business appears to be doing well due to its
customer retention and usage. Despite some unexpected setbacks in
its earnings, NRG will still generate strong FOCF because the
retail model is less capital intensive and its maintenance capital
expenditure (capex) will be more predictable. S&P anticipates cash
flow conversion in the legacy business of about 40% in 2022, which
will rise to about 55%-60% in 2023-2024.
The acquisition is premised on the belief that the pro forma
company will maintain similarly strong cash flow generation.
Management expects that the pro forma entity will have very stable
cash flow because of the extension of its customer tenure
(customers offered bundled products tend to be stickier), lower
attrition rates, and its reduced commodity exposure due to its
increased product diversity.
Vivint has invested heavily in its technology and maintains
superior key performance indicators relative to those of its peers.
Its core customer value--monthly service margin multiplied by
customer life less subscriber acquisition costs--has improved
materially to $3,275, which compares with $2,200 at its competitor
ADT.
While the acquisition appears untimely from a macroeconomic
perspective, Vivint recently generated positive FOCF.
For a home services company, it is all about achieving sufficient
scale so that its recurring revenue per user overwhelms its
subscriber acquisition costs (this is no different from retail
power). Vivint appears to have reached that mark given that it
reported marginally positive FOCF in 2021. Alarm monitoring
companies tend to have significant upfront costs to fund subscriber
acquisitions and thus need capital to finance their expansion.
While the business will likely benefit from the excess cash that
NRG's legacy business generates, it will still require investments
for ongoing initiatives (brand awareness and information
technology) to support its strong growth. Management expects Vivint
to generate nearly $1.5 billion of FOCF between 2023-2027 (assuming
zero net growth), which will be important to support NRG's
successful pivot toward home services.
S&P said, "We view the transaction's timing as somewhat unfavorable
because we think the execution risks in this market environment
could be material. While NRG could use its excess cash flow to fund
its potential expansion, we think its attach rates and new customer
rates would decline and its existing customers could look for
rebates/concessions or simply trade down from premium products to
lower-cost packages amid a recessionary environment."
Yet, several factors could mitigate subscriber attrition in a
recession. This includes relatively high FICO scores across the
subscriber base, which suggests the average customer is less price
sensitive than the typical consumer. High engagement metrics,
including number of devices installed per home and daily
interactions on via the application suggest Vivant's subscribers
view this as an important service that is core to the home.
Historical data shows that Vivant's business model has been more
durable during economic downturns than models that rely on
do-it-yourself or equipment sales.
The manner in which the company finances the merger will likely be
unfavorable for its lenders, in S&P's view.
S&P said, "Vivint will become a wholly owned, non-guarantor
subsidiary of NRG and maintain its own capital structure. However,
we will consolidate Vivint's financials with those of NRG because
Vivint operates in a core business line, even though its debt will
be non-recourse to NRG. Essentially, we think that Vivint will be
strategically important and expect NRG would support it if it
experienced financial difficulties.
"The transaction, which we expect NRG will largely fund with debt,
indicates a $5.6 billion enterprise value for Vivint (equity value
and assumed debt). NRG believes a business that will likely
generate strong FOCF will not need to be over-equitized. Therefore,
the execution risks amid potential recessionary headwinds will be
borne by the debtholders. We think such transactional risks should
typically be borne by shareholders. We see management's willingness
to continue to pursue share repurchases as a departure from its
stated commitment to achieve an investment-grade credit profile,
which we anticipate its shareholder rewards will further delay.
"Pending regulatory approvals, we expect the acquisition to close
by the end of the first quarter of 2023. We expect to resolve our
CreditWatch on NRG over the next four months."
OBSTETRIC & GYNECOLOGIC: Seeks to Hire Nyemaster Goode as Counsel
-----------------------------------------------------------------
Obstetric and Gynecologic Associates of Iowa City and Coralville,
P.C. seeks approval from the U.S. Bankruptcy Court for the Southern
District of Iowa to hire Nyemaster Goode, 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 and
property;
(b) attending meetings and negotiating with creditor
representatives and other parties in interest, and advising and
consulting on the conduct of the Debtor's Chapter 11 case,
including all of the legal and administrative requirements of
operating in Chapter 11;
(c) taking appropriate action to protect and preserve the
Debtor's estate, including prosecuting actions on behalf of the
estate, defending actions commenced against the estate, defending
against continued state court efforts of creditors and actions that
interfere with the Debtor's reorganization, negotiating any
litigation in which the Debtor may be involved, and objecting to
claims filed against the estate;
(d) preparing legal papers;
(e) advising the Debtor with respect to its executory
contracts and unexpired leases, and seeking court approval to
assume or reject each, as appropriate;
(f) appearing before the bankruptcy court or other courts;
and
(g) other necessary legal services.
The firm will charge these hourly fees:
Kristina Stanger, Shareholder $400 per hour
Roy Leaf, Associate $275 per hour
Catherine AndersonSkotzke, Associate $200 per hour
Sharon Carney, Paralegal $90 per hour
Kristina Stanger, Esq., a shareholder of Nyemaster and the attorney
expected to represent the Debtor, charges an hourly fee of $300.
Ms. Stanger disclosed in a court filing that her firm is
"disinterested" as defined in Section 101(14) of the Bankruptcy
Code.
Nyemaster can be reached through:
Kristina M. Stanger, Esq.
Nyemaster Goode, P.C.
700 Walnut, Suite 1600
Des Moines, IA 50309-3899
Phone: 515-283-3100 / 515.283.8009
Fax: 515-283-3108
Email: kmstanger@nyemaster.com
About Obstetric and Gynecologic Associates
Obstetric and Gynecologic Associates of Iowa City and Coralville,
P.C. -- https://www.obgyniowacity.com/ -- provides obstetric and
gynecologic care services of women through Mercy Hospital in
Coralville, Iowa.
Obstetric and Gynecologic Associates sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Iowa Case No.
22-01174) on Oct. 31, 2022. In the petition filed by Jill C.
Goodman, as authorized officer, the Debtor listed assets between
$500,000 and $1 million and liabilities between $50 million and
$100 million.
Judge Anita L. Shodeen oversees the case.
The Debtor tapped Levenfeld Pearlstein, LLC and Nyemaster Goode, PC
as legal counsels; and G2 Capital Advisors, LLC as restructuring
advisor. Jeffrey T. Varsalone, managing director at G2 Capital,
serves as the Debtor's chief restructuring officer. Stretto, Inc.
is the claims, noticing and solicitation agent.
OBSTETRIC & GYNECOLOGIC: Taps J. Varsalone of G2 Capital as CRO
---------------------------------------------------------------
Obstetric and Gynecologic Associates of Iowa City and Coralville,
P.C. seeks approval from the U.S. Bankruptcy Court for the Southern
District of Iowa to hire G2 Capital Advisors, LLC and designate the
firm's managing director, Jeffrey Varsalone, as its chief
restructuring officer.
The firm's services include:
-- preparing a 13-week cash flow forecast, assisting with
debtor-in-possession financing negotiations and assisting the
Debtor with related lender reporting requirements;
-- assisting the Debtor with the preparation of data in order to
prepare pleadings and fiduciary filings;
-- providing testimony on matters that are within G2's
expertise;
-- executing restructuring initiatives, including negotiations
with creditors and key stakeholders, structuring plans of
reorganization, selling all or parts of the Debtor, including any
marketing thereof;
-- assisting the Debtor and its counsel in negotiations with
various parties-in-interest;
-- assisting the Debtor and its counsel in adversary proceedings
or contested matters; and
-- supporting the Debtor in other matters, if requested.
The Debtor has agreed to compensate G2 at a blended hourly rate of
$550.
Mr. Varsalone disclosed in a court filing that his firm is a
"disinterested person" within the meaning of Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Jeffrey T. Varsalone
G2 Capital Advisors, LLC
420 Boylston St
Boston, MA 02116
Phone: +1 617-531-9911
Email: jvarsalone@g2cap.com
About Obstetric and Gynecologic Associates
Obstetric and Gynecologic Associates of Iowa City and Coralville,
P.C. -- https://www.obgyniowacity.com/ -- provides obstetric and
gynecologic care services of women through Mercy Hospital in
Coralville, Iowa.
Obstetric and Gynecologic Associates sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Iowa Case No.
22-01174) on Oct. 31, 2022. In the petition filed by Jill C.
Goodman, as authorized officer, the Debtor listed assets between
$500,000 and $1 million and liabilities between $50 million and
$100 million.
Judge Anita L. Shodeen oversees the case.
The Debtor tapped Levenfeld Pearlstein, LLC and Nyemaster Goode, PC
as legal counsels; and G2 Capital Advisors, LLC as restructuring
advisor. Jeffrey T. Varsalone, managing director at G2 Capital,
serves as the Debtor's chief restructuring officer. Stretto, Inc.
is the claims, noticing and solicitation agent.
OBSTETRIC & GYNECOLOGIC: Taps Levenfeld Pearlstein as Legal Counsel
-------------------------------------------------------------------
Obstetric and Gynecologic Associates of Iowa City and Coralville,
P.C. seeks approval from the U.S. Bankruptcy Court for the Southern
District of Iowa to hire Levenfeld Pearlstein, LLC 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 negotiating with representatives of
creditors and other parties in interest;
c. taking all necessary action to protect and preserve the
Debtor's estate, including prosecuting actions on the Debtor's
behalf, defending any action commenced against the Debtor, and
representing the Debtor's interests in negotiations concerning all
litigation in which the Debtor is involved, including objections to
claims filed against its estate;
d. preparing legal papers;
e. taking any necessary action on behalf of the Debtor to
obtain approval of a plan of reorganization;
f. representing the Debtor in connection with obtaining use of
cash collateral;
g. advising the Debtor in connection with any potential sale
of assets;
h. appearing before the bankruptcy court, appellate courts,
and the United States Trustee; and
i. performing all other necessary legal services for the
Debtor in connection with its Chapter 11 case, including, without
limitation, (i) the analysis of the Debtor's leases and executory
contracts and the assumption, rejection, or assignment thereof,
(ii) the analysis of the validity of liens against the Debtor, and
(iii) advice on corporate, litigation, and other matters.
Levenfeld will charge these hourly fees:
Harold D. Israel, Partner $650
Elizabeth B. Vandesteeg, Partner $625
John (Jack) R. O'Connor, Partner $550
Sean P. Williams, Associate $510
Yeon Juh Roh, Paralegal $360
In addition, the firm will be reimbursed for out-of-pocket expenses
incurred.
Harold Israel, Esq., at Levenfeld, disclosed in court filings 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:
Harold D. Israel, Esq.
Sean P. Williams, Esq.
Levenfeld Pearlstein, LLC
2 North LaSalle Street, Suite 1300
Chicago, IL 60602
Telephone: (312) 346-8380
Facsimile: (312) 346-8434
Email: hisrael@lplegal.com
About Obstetric and Gynecologic Associates
Obstetric and Gynecologic Associates of Iowa City and Coralville,
P.C. -- https://www.obgyniowacity.com/ -- provides obstetric and
gynecologic care services of women through Mercy Hospital in
Coralville, Iowa.
Obstetric and Gynecologic Associates sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Iowa Case No.
22-01174) on Oct. 31, 2022. In the petition filed by Jill C.
Goodman, as authorized officer, the Debtor listed assets between
$500,000 and $1 million and liabilities between $50 million and
$100 million.
Judge Anita L. Shodeen oversees the case.
The Debtor tapped Levenfeld Pearlstein, LLC and Nyemaster Goode, PC
as legal counsels; and G2 Capital Advisors, LLC as restructuring
advisor. Jeffrey T. Varsalone, managing director at G2 Capital,
serves as the Debtor's chief restructuring officer. Stretto, Inc.
is the claims, noticing and solicitation agent.
OBSTETRIC & GYNECOLOGIC: Taps Stretto as Claims and Noticing Agent
------------------------------------------------------------------
Obstetric and Gynecologic Associates of Iowa City and Coralville,
P.C. seeks approval from the U.S. Bankruptcy Court for the Southern
District of Iowa to hire Stretto, Inc. as claims, noticing and
solicitation agent.
The Debtor requires a claims and noticing agent to serve notices to
creditors, equity security holders and other concerned parties, and
provide computerized claims-related services.
Stretto will bill the Debtor no less frequently than monthly.
Sheryl Betance, a senior managing director at Stretto, 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:
Sheryl Betance
Stretto, Inc.
410 Exchange, Ste. 100
Irvine, CA 92602
Telephone: (714) 716-1872
Email: sheryl.betance@stretto.com
About Obstetric and Gynecologic Associates
Obstetric and Gynecologic Associates of Iowa City and Coralville,
P.C. -- https://www.obgyniowacity.com/ -- provides obstetric and
gynecologic care services of women through Mercy Hospital in
Coralville, Iowa.
Obstetric and Gynecologic Associates sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Iowa Case No.
22-01174) on Oct. 31, 2022. In the petition filed by Jill C.
Goodman, as authorized officer, the Debtor listed assets between
$500,000 and $1 million and liabilities between $50 million and
$100 million.
Judge Anita L. Shodeen oversees the case.
The Debtor tapped Levenfeld Pearlstein, LLC and Nyemaster Goode, PC
as legal counsels; and G2 Capital Advisors, LLC as restructuring
advisor. Jeffrey T. Varsalone, managing director at G2 Capital,
serves as the Debtor's chief restructuring officer. Stretto, Inc.
is the claims, noticing and solicitation agent.
ORBIT ENERGY: Seeks Cash Collateral Access
------------------------------------------
Orbit Energy and Power, LLC asks the U.S. Bankruptcy Court for the
District of New Jersey for authority to use cash collateral on an
interim basis through December 31, 2022 and provide related
relief.
The Debtor requires the use of cash collateral to pay expenses
including pre-petition wages and payroll.
The Debtor is a New Jersey Limited Liability Company formed in
November 2017 by Sean Angelini, who founded the company at his
dining room table. With relatively no outside capital, Mr. Angelini
was able to grow a $80+ million firm in just under five years'
time.
A large portion of the Debtor's revenue is generated from
residential solar installations. The Debtor provides an
introduction to various financing sources for those customers which
provide funding to the Debtor upon completion of the projects.
The Debtor's capital structure consists of the following:
a. Republic First Bank has the senior secured position on all
assets in the amount of $480,000.
b. CHTD Company is a Merchant Cash Advance (MCA) lender
asserting a security interest in accounts and other assets.
c. Global Merchant Cash Advance is a MCA lender asserting a
security interest in accounts and other assets.
d. Wells Fargo is a Merchant Cash Advance (MCA) lender
asserting a security interest in accounts and other assets.
e. Reserve Advance is a MCA lender asserting a security
interest in accounts and other assets.
f. TVT is a Merchant Cash Advance (MCA) lender asserting a
security interest in accounts and other assets.
g. Sunlight Financial is a lender asserting a security
interest in accounts and other assets.
h. Bancorp Bank and Toyota Industries Commercial have also
filed UCC 1 financing statements relating to specific pieces of
equipment.
i. Other MCA lenders have asserted claims but have not filed
UCC-1 financing statements.
j. Chrysler Capital, Ally Financial, and Key Bank have liens
on vehicles only and are in possession of the titles to those
vehicles as collateral.
k. The Small Business Administration has a $500,000 claim but
has not filed a UCC-1.
The Debtor has unsecured debt owed mostly to trade vendors,
totaling approximately $7 million of which $1 million is disputed
with a supplier.
The dispute with the supplier was the trigger to the cascade of
problems that caused the bankruptcy. The Debtor had expanded and
had relied upon U.S. Renewables & REC Manufacturing for several
million dollars of solar panels that were ordered. U.S. Renewables
& REC Manufacturing failed to supply the panels and the Debtor had
to scramble to (a) find panels and (b) find the money to pay the
increased price.
The Debtor began borrowing from the MCA lenders around the time of
U.S. Renewables & REC's failure. The loss of liquidity, raising
interest rates and falling consumer demand was a perfect storm and
the Debtor could not weather all these issues.
The Debtor began to implement a restructuring plan which included
workforce and other cost reductions, closing unprofitable
businesses and locations, and purchasing management. The Debtor's
cash flow rights itself in January as a result of these measures.
The Debtor believes and avers that Republic First is fully secured
but the vast majority of the junior lien holders may be unsecured
or partially unsecured.
The Debtor is current on all insurances, benefits, and taxes. The
Debtor has a strong safety programs and a well-maintained fleet.
A copy of the motion is available at https://bit.ly/3HisNvS from
PacerMonitor.com.
About Orbit Energy & Power, LLC
Orbit Energy & Power, LLC is a renewable energy company.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.N.J. Case No. 22-19628) on December 6,
2022. In the petition signed by Sean Angelini, managing member, the
Debtor disclosed up to $10 million in assets and up to $50 million
in liabilities.
Abert A. Ciardi III, Esq., at Ciardi Ciardi & Astin, represents the
Debtor as counsel.
PENNYROYAL LOGISTICS: Case Summary & Three Unsecured Creditors
--------------------------------------------------------------
Debtor: Pennyroyal Logistics, Inc.
101 Northgate Preserve Drive
Newnan, GA 30265
Business Description: Pennyroyal is a delivery services provider.
Chapter 11 Petition Date: December 7, 2022
Court: United States Bankruptcy Court
Northern District of Georgia
Case No.: 22-11362
Debtor's Counsel: Will Geer, Esq.
ROUNTREE, LEITMAN, KLEIN & GEER, LLC
2987 Clairmont Road Suite 350
Atlanta, GA 30329
Tel: 678-587-8740
Email: wgeer@rlkglaw.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Troy Wood as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's three unsecured creditors is available for
free at PacerMonitor.com at:
https://www.pacermonitor.com/view/3LGNPEQ/Pennyroyal_Logistics_Inc__ganbke-22-11362__0001.0.pdf?mcid=tGE4TAMA
PHARMASTRATEGIES LLC: Taps Benezra & Culver as Special Counsel
--------------------------------------------------------------
PharmaStrategies, LLC seeks approval from the U.S. Bankruptcy Court
for the District of Colorado to employ Benezra & Culver, PC as its
special counsel.
The Debtor needs a special counsel for representation in litigation
matters and arbitration including the cases: (a) RXDC, LP v.
PharmaStrategies, LLC, Case No. 20-cv-01743-E; (b) RXDC, LP v.
PharmaStrategies, LLC, Case No. 3:20-cv-01743-E; and (c)
PharmaStrategies, LLC v. WellDyneRX, Inc., Case No.
01-22-0000-6881.
The hourly rates of the firm's counsel and staff are as follows:
John Culver $440
Attorneys $225 - $250
Paralegals and Law clerks $150
John Culver, Esq., an attorney at Benezra & Culver, 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:
John Culver, Esq.
Benezra & Culver, PC
Colorado Plaza Tower One
633 17th Street, Suite 1450
Denver, CO 80202
Telephone: (303) 716-0254
Facsimile: (303) 716-0327
About PharmaStrategies
PharmaStrategies, LLC, a company in Black Hawk, Colo., sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.
Neb. Case No. 22-14405) on Nov. 10, 2022. In the petition signed by
its manager, Larry Krug, the Debtor disclosed up to $50,000 in
assets and up to $10 million in liabilities.
Judge Michael E. Romero oversees the case.
The Debtor tapped David V. Wadsworth, Esq., at Wadsworth Garber
Warner Conrardy, PC as bankruptcy counsel and Benezra & Culver, PC
as special counsel.
PUERTO RICO: Judge Rejects Stay of HTA Plan of Adjustment
---------------------------------------------------------
Robert Slavin of The Bond Buyer reports that U.S. District Court
for the Southern District of New York Judge Laura Taylor Swain
declined a request for a stay on the implementation of HTA's plan
of adjustment.
According to John Mudd, the attorney who represented the group, the
present and ex-HTA employees that sought the stay, will turn to the
U.S. Court of Appeals for the First District to appeal the ruling.
Mudd and the group, called the Vazquez Velazquez Group, appealed
the plan of adjustment's treatment of its members in late October
2022. Judge Swain approved the plan of adjustment on Oct. 12, but
it has not yet been implemented.
About Puerto Rico
Puerto Rico is a self-governing commonwealth in association with
the United States that's facing a massive bond debt of $70 billion,
a 68% debt-to-GDP ratio and negative economic growth in nine of the
last 10 years.
The Commonwealth of Puerto Rico has sought bankruptcy protection,
aiming to restructure its massive $74 billion debt load and $49
billion in pension obligations.
The debt restructuring petition was filed by Puerto Rico's
financial oversight board in U.S. District Court in Puerto Rico
(Case No. 17-01578) on May 3, 2017, and was made under Title III of
2016's U.S. Congressional rescue law known as the Puerto Rico
Oversight, Management, and Economic Stability Act ('PROMESA').
The Financial Oversight and Management Board later commenced Title
III cases for the Puerto Rico Sales Tax Financing Corporation
(COFINA) on May 5, 2017, and the Employees Retirement System (ERS)
and the Puerto Rico Highways and Transportation Authority (HTA) on
May 21, 2017. On July 2, 2017, a Title III case was commenced for
the Puerto Rico Electric Power Authority ("PREPA").
U.S. Chief Justice John Roberts has appointed U.S. District Judge
Laura Taylor Swain to oversee the Title III cases. The Honorable
Judith Dein, a United States Magistrate Judge for the District of
Massachusetts, has been designated to preside over matters that may
be referred to her by Judge Swain, including discovery disputes,
and management of other pretrial proceedings.
Joint administration of the Title III cases, under Lead Case No.
17-3283, was granted on June 29, 2017.
The Oversight Board has hired as advisors, Proskauer Rose LLP and
O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic
consultant, Citigroup Global Markets, as municipal investment
banker, and Ernst & Young, as financial advisor.
Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M.
Abelson, Esq., of Proskauer Rose; and Hermann D. Bauer, Esq., at
O'Neill & Borges are on-board as attorneys.
McKinsey & Co. is the Board's strategic consultant, Ernst & Young
is the Board's financial advisor, and Citigroup Global Markets Inc.
is the Board's municipal investment banker.
Prime Clerk LLC is the claims and noticing agent. Prime Clerk
maintains a case web site at
https://cases.primeclerk.com/puertorico
Epiq Bankruptcy Solutions LLC is the service agent for ERS, HTA,
and PREPA.
O'Melveny & Myers LLP is counsel to the Commonwealth's Puerto Rico
Fiscal Agency and Financial Advisory Authority (AAFAF), the agency
responsible for negotiations with bondholders.
The Oversight Board named Professor Nancy B. Rapoport as fee
examiner and to chair a committee to review professionals' fees.
* * *
Title III plans of adjustment have been confirmed for the
Commonwealth, COFINA, and HTA.
On Jan. 18, 2022, the Title III Court entered its findings of fact
and conclusions of law confirming the Commonwealth's Eighth Amended
Plan. On March 15, 2022, the Plan became effective.
As of the Effective Date, the Commonwealth's Plan reduced total
funded debt obligations from $34.3 billion of prepetition debt to
only $7.4 billion, representing a total debt reduction of 78%.
This debt reduction will also reduce the Commonwealth's maximum
annual debt service (inclusive of COFINA debt service) from $4.2
billion to $1.15 billion, representing a total debt service
reduction of 73%.
REACTION BIOLOGY: Golub Values $867,000 Loan at 75% of Face
-----------------------------------------------------------
Golub Capital BDC 3, Inc., has marked its $867,000 loan extended to
Reaction Biology Corporation to market at $650,000, or 75% of the
outstanding amount, as of September 30, 2022, according to a
disclosure contained in Golub's Form 10-K filing for the year ended
September 30, 2022, filed with the Securities and Exchange
Commission on December 2.
Golub's One stop loan to Reaction Biology Corporation charges 9.48%
in interest rate. The loan is scheduled to mature in March 2029.
Golub is a business development company formed in August 2017 to
make investments and generate current income and capital
appreciation by investing primarily in one stop loans (a loan that
combines characteristics of traditional first lien senior secured
loans and second lien or subordinated loans that are often referred
to by other middle market lenders as unitranche loans) and other
senior secured loans of U.S. middle-market companies that are, in
most cases, sponsored by private equity firms.
Reaction Biology specializes in assay services and protein
production for early-stage drug discovery.
RITE AID: S&P Lowers Issuer Credit Rating Lowered To 'SD'
---------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on U.S.-based
drugstore retailer Rite Aid Corp. to 'SD' (selective default) from
'CC' and the issue-level rating on its 2025 notes to 'D' from 'CC'.
S&P's ratings on the company's notes not subject to the repurchase
transactions are unchanged.
S&P said, "We view the exchange offer as distressed and not
opportunistic. The downgrade follows Rite Aid's announcement that
it has completed the early tender portion of its below-par cash
tender offer for up to $200 million of the aggregate principal
outstanding on its 2025 notes. About $160.5 million of the
aggregate principal amount of these notes was exchanged. The
company repurchased debt at about 25% below par. We view the
proposed transaction as distressed because we do not view that
discount as minimal, and the company does not have significant
excess cash reserves on its balance sheet to fund the tender
without incurring additional debt.
"We view the amount of debt being repurchased as more than de
minimis and continue to believe the company's ability to execute a
sustained turnaround of its operations is uncertain. We note Rite
Aid has conducted the tender several quarters before the maturities
of the tendered notes, which somewhat offsets these considerations.
The company's cash balances totaled $46.8 million, and it had about
$1.3 billion of borrowing capacity under its $2.85 billion
asset-based revolving credit facility as of Aug. 27, 2022. The
tender offer is part of a refinancing that is expected to include
an increased revolving credit facility. Rite Aid does not have any
upcoming debt maturities until 2025, when its revolver, senior
notes, and term loan come due. However, we believe the company
would be unable to withstand a low-probability, high-impact event
without refinancing. Also, we do not think it has a generally
satisfactory or high standing in the credit markets given its
history of below par debt transactions.
"The exchange offer will slightly reduce the company's funded debt
and alleviate some of its interest expense. However, it will only
marginally benefit Rite Aid's credit profile. Therefore, we expect
to raise our issuer credit rating on the company to 'CCC+' from
'SD' in the next few days given the persistent weakness in its
business."
Camp Hill, Pa.-based Rite Aid is the third-largest drugstore
retailer in the U.S. by revenue. It operated 2,352 stores as of
August 2022. The company's operations are organized into two
divisions: retail pharmacy and pharmacy services (operates as a
pharmacy benefit manager).
ESG credit indicators: E-2, S-2, G-2
RIVERBEND ENVIRONMENTAL: Taps Pittman Roberts & Welsh as Counsel
----------------------------------------------------------------
Riverbend Environmental Services, LLC seeks approval from the U.S.
Bankruptcy Court for the Southern District of Mississippi to employ
Pittman, Roberts & Welsh, PLLC as its special counsel.
The Debtor needs a special counsel to litigate all matters
pertaining to claims against its insurance carrier, Crum & Forster
Insurance Company and others, arising from issues of coverage
relating to the landfill fire that occurred at Riverbend's Fayette
Landfill facility on Aug. 16, 2020.
The firm will be compensated an undivided contingent interest of 40
percent, plus expenses, of any monies recovered from Crum & Forster
Insurance Company and others.
C. Victor Welsh, III, Esq., an attorney at Pittman, Roberts &
Welsh, 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:
C. Victor Welsh, III, Esq.
Pittman, Roberts & Welsh, PLLC
410 S. President Street
Jackson, MS 39201
Telephone: (601) 948-6200
About Riverbend Environmental Services
Riverbend Environmental Services, LLC, a company based in Fayette,
Miss., sought Chapter 11 protection (Bankr. S.D. Miss. Case No.
19-03828) on Oct. 25, 2019. In the petition signed by its manager,
Jackie McInnis, the Debtor reported between $10 million and $50
million in assets and between $1 million and $10 million in
liabilities.
Judge Katharine M. Samson oversees the case.
The Debtor tapped the Law Offices of Craig M. Geno, PLLC as
bankruptcy counsel, and Watkins & Eager, PLLC and Pittman, Roberts
& Welsh, PLLC as special counsels.
RUBY PIPELINE: Debtor, Noteholders Clash on Bids
------------------------------------------------
Ruby Pipeline LLC is clashing with noteholders on the selection of
a lead bidder in an auction for ownership of the Debtor. Ruby
Pipeline asked a Delaware bankruptcy judge Dec. 6, 2022, to approve
a $236 million stalking horse bid for its pipelines from an equity
sponsor. The noteholders, on the other hand, claimed that they
have submitted a more superior offer thus the group should be
designated as stalking horse bidder entitled to bid protections.
Judge Craig T. Goldblatt on Dec. 7, 2022, entered orders (i)
denying the Debtor's motion for designation of a stalking horse
bidder to the extent that it seeks approval of bid protections, and
(ii) denying the ad hoc group of noteholders' motion for an order
designating the noteholders group as a qualified bidder.
The Debtor had sought Court approval of its designation of EP Ruby
LLC, a wholly-owned subsidiary of Kinder Morgan, Inc., as the
stalking horse bidder. The parties' Investment Agreement, dated
Nov. 18, 2022, provides for cash consideration in the amount of up
to $236 million, together with additional consideration. Pursuant
to the Agreement, the Debtor has agreed to pay EP Ruby (x) a
break-up fee in an amount equal to 1.75% of the purchase price, and
(y) the amount of the reasonable, out-of-pocket and documented
expenses up to an aggregate amount of 1% of the purchase price in
the event of a higher or better sale transaction is consummated by
the Debtor.
But the noteholders claim that the Debtor has rejected bids by the
noteholders outright, and yet continues to push forward with a less
attractive bid from an insider with substantial litigation
exposure.
"Refusing to allow the Noteholders to participate in the Auction
would serve only one purpose -- to make it significantly more
likely the Sponsors pay as little as possible for the pipeline
assets and the settlement of the Sponsor Causes of Action -- the
same purpose that is served by granting bid protections to an
insider when the estate is not in danger of losing value. The
Noteholders are a vital part of any Auction, and should be
designated as Qualified Bidders, with the Noteholder Bids
designated as Qualified Bids," the noteholders said in court
filings.
The bid amount and other terms of the bid by noteholders were
redacted from publicly available filings.
About Ruby Pipeline
Ruby Pipeline, LLC, a Houston-based natural gas pipeline company,
sought Chapter 11 bankruptcy protection (Bankr. D. Del. Case No.
22-10278) on March 31, 2022. In the petition filed by Will W.
Brown, as commercial vice-president, Ruby Pipeline listed $500
million to $1 billion in both assets and liabilities. Judge Craig
T. Goldblatt oversees the case.
Richards, Layton & Finger, P.A. and Weil Gotshal & Manges, LLP are
the Debtor's bankruptcy counsels while PJT Partners, LP is the
investment banker. Kroll Restructuring Administration, LLC,
formerly known as Prime Clerk, LLC, is the claims and noticing
agent and administrative advisor.
Counsel to the Ad Hoc Group and Special Counsel to the Indenture
Trustee are Morris, Nichols, Arsht & Tunnell LLP, and Davis Polk &
Wardwell LLP.
The U.S. Trustee for Region 3 appointed an official committee of
unsecured creditors on April 19, 2022. Brown Rudnick, LLP and
Benesch, Friedlander, Coplan & Aronoff LLP serve as the committee's
bankruptcy counsel and Delaware counsel, respectively.
SABRINAS ATLANTIC: Court OKs Interim Cash Collateral Access
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Florida,
Fort Lauderdale Division, authorized Sabrinas Atlantic Window
Cleaning and Pressure Cleaning, LLC to use cash collateral on an
interim basis and provide adequate protection to Vox Funding, LLC,
Funding Metrics, LLC d/b/a Lendini and Financial Advance, LLC, the
MCAs.
The Debtor is permitted to use cash collateral to pay: (a) amounts
expressly authorized by the Court, including any 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 Vox, Lendini and/or Fora, to the extent any of the MCAs
have an interest in such cash collateral.
This authorization will continue until the effective date of any
confirmed plan of reorganization of the Debtor, or until further
order of the Court.
The MCAs will have a post-petition interest against cash collateral
to the same extent and with the same validity and priority as its
respective p repetition interest, without the need to file or
execute any document as may otherwise be required under applicable
nonbankruptcy law.
A continued hearing on the matter is set for January 18, 2023 at
1:30 p.m.
A copy of the order is available at https://bit.ly/3Fw1soT from
PacerMonitor.com.
The budget provides for total expenses, on a weekly basis, as
follows:
$51,803 for the week ending December 7, 2022;
$53,746 for the week ending December 14, 2022;
$47,779 for the week ending December 21, 2022;
$25,500 for the week ending December 28, 2022;
$44,458 for the week ending January 4, 2023;
$38,995 for the week ending January 11, 2023;
$40,539 for the week ending January 18, 2023; and
$39,390 for the week ending January 25, 2023.
About Sabrinas Atlantic Window Cleaning
Sabrinas Atlantic Window Cleaning and Pressure Cleaning, LLC is in
the business of residential window cleaning and pressure cleaning
with a small portion of its business consisting of commercial
window cleaning and pressure cleaning.
The Debtor sought protection from Chapter 11 of the U.S. Bankruptcy
Code (Bankr. S.D. Fla. Case No. 22-18568) on November 3, 2022. In
the petition signed by Rachel Euler, manager, the Debtor disclosed
up to $50,000 in assets and up to $500,000 in liabilities.
Judge Scott M. Grossman oversees the case.
Michael A. Nardella, Esq., at Nardella & Nardella, PLLC, is the
Debtor's counsel.
SKAR CONSTRUCTION: Seeks to Hire Bruner Wright as Legal Counsel
---------------------------------------------------------------
SKAR Construction, Inc. seeks approval from the U.S. Bankruptcy
Court for the Northern District of Florida to employ Bruner Wright,
PA to handle its Chapter 11 case.
The hourly rates of the firm's counsel and staff are as follows:
Robert C. Bruner $450
Byron Wright III $375
Paralegal $150
Bruner Wright received a retainer of $6,738 from the Debtor.
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
Telephone: (850) 385-0342
Facsimile: (850) 270-2441
Email: rbruner@brunerwright.com
About SKAR Construction
SKAR Construction, Inc. sought Chapter 11 bankruptcy protection
(Bankr. N.D. Fla. Case No. 22-40365) on Nov. 16, 2022, with up to
$1 million in both assets and liabilities. Byron Wright III, Esq.,
at Bruner Wright, PA serves as the Debtor's counsel.
SPRINGER AEROSPACE: Gets CCAA Initial Stay Order; MNP Named Monitor
-------------------------------------------------------------------
Springer Aerospace Holdings Limited and 1138969 Ontario Inc. have
commenced restructuring proceedings under the Companies' Creditors
Arrangement Act.
As part of the restructuring, Springer Aerospace is continuing to
work with its primary lender, Caisse Desjardins Ontario Credit
Union Inc., and other key stakeholders. Springer Aerospace will be
undertaking an operations review and will implement steps to
enhance workflow and profitability for long term growth.
"Springer Aerospace is grateful for the ongoing support of our
employees, suppliers and customers and the Echo Bay community,"
said Christopher Grant, CEO. "We look forward to building this
company to service the community for years to come, as it has done
since 1972."
On Nov. 23, 2022, an order ("Initial Order") was granted by the
Ontario Superior Court of Justice (Commercial List) granting the
Companies various relief including, but not limited to, the
imposition of an initial Stay of Proceedings through to Dec. 2,
2022 ("Stay Period"), with further extensions available through
Court approval. Pursuant to the Initial Order, MNP Ltd. was
appointed as CCAA monitor.
The Initial Order has been posted on the Monitor's website:
https://mnpdebt.ca/en/corporate/corporate-engagements/springeraerospace.
Other relevant information regarding these proceedings, including
a list of known creditors, the Monitor's reports, Court orders, and
written communications and notifications from the Monitor, will be
made available on the Monitor's Website from time to time.
Creditors are encouraged to check the Monitor’s Website regularly
for updates as to the status of these proceedings.
During the Stay Period, all parties are prohibited from commencing
or continuing legal or enforcement actions against the Companies
and all rights and remedies of any party against or in respect of
the Companies or their assets are stayed and suspended except with
the written consent of the Companies and the Monitor or leave of
the Court.
At this stage, a claims process has not been put in place. As such,
creditors are not, for the time being, required to file proofs of
claim. Any claims process will be subject to a future Court order,
and notice will be provided in accordance with any such future
order.
Further questions in relation to the CCAA proceedings, contact
Chahna Nathwani at 647-475-8331 or email Chahna.Nathwani@mnp.ca.
Monitor can be reached at:
MNP Ltd.
111 Richmond Street West Suite 300
Toronto, ON M5H 2G4
Sheldon Title
Email: Sheldon.title@mnp.ca
Tel: 416-573-5320
Matthew Lem
Email: Matthew.Lem@mnp.ca
Tel: 416-515-3882
Lawyers for the Monitor:
Aird & Berlis LLP
Brookfield Place
181 Bay St., Suite 1800
Toronto, ON M5J 2T9
Ian Aversa
Email: iaversa@airdberlis.com
Tel: 416-865-3082
Miranda Spence
Email: mspence@airdberlis.com
Tel: 416-865-3414
Matilda Lici
Email: mlici@airdberlis.com
Tel: 416-865-3428
Lawyers for the Companies:
Reconstruct LLP
Royal Bank Plaza, South Tower
200 Bay Street
Suite 2305, P.O. Box 120
Toronto, ON M5J 2J3
Sharon Kour
Email: skour@reconllp.com
Tel: 416-613-8283
Caitlin Fell
Email: cfell@reconllp.com
Tel: 416-613-8282
Joel Turgeon
Email: jturgeon@reconllp.com
Tel: 416-613-8181
Caisse Desjardins can be reached at:
Caisse Desjardins Ontario Credit Union Inc.
(formerly Caisse Populaire Vermillon Inc.)
43, Rue Notre-Dame, C.P. 550
Azilda, ON P0M 1B0
866 Newgate Avenue
Sudbury ON P3A 5J9
29 Rue Main Est
Chelmsford, ON P0M 1L0
Lawyers for Caisse Desjardins:
Gowling WLG
1 First Canadian Place
100 King Street West
Suite 1600
Toronto, ON M5X 1G5
Haddon Murray
Email: haddon.murray@gowlingwlg.com
Tel: 416-862-3604
DIP Lender can be reached at:
Hillmount Capital Inc.
89 Tycos Dr., Suite 208
Toronto, ON M6B 1W3
Yitz Levinson
Email: yitz@hillmount.ca
Tel : 416-849-0322 ext. 222
Lawyers for the DIP Lender:
Fogler Rubinoff LLP
77 King Street West, Suite 3000
Toronto, ON M5K 1G8
Vern DaRe
Email: vdare@foglers.com
Tel: 416-941-8842
Joseph Fried
EMail: jfried@foglers.com
Tel: 416-941-8836
Springer Aerospace Holdings Limited --
https://www.springeraerospace.com/ -- provides a full-service
aircraft maintenance, repair and overhaul business in Echo Bay,
Ontario,
TARONIS FUELS: Seeks to Hire Potter Anderson & Corroon as Counsel
-----------------------------------------------------------------
Taronis Fuels, Inc. and its affiliates seek approval from the U.S.
Bankruptcy Court for the District of Delaware to employ Potter
Anderson & Corroon, LLP as their legal counsel.
The firm will render these legal services:
(a) advise the Debtors of their rights, powers, and duties
under Chapter 11 of the Bankruptcy Code;
(b) take action to protect and preserve the Debtors' estates;
(c) appear in court and at any meeting required by the U.S.
Trustee and any meeting of creditors at any given time on behalf of
the Debtors as their counsel;
(d) assist with any disposition of the Debtors' assets by sale
or otherwise;
(e) prepare legal papers;
(f) prepare any plan of reorganization;
(g) prepare any disclosure statement and any related documents
and pleadings necessary to solicit votes on any plan of
reorganization;
(h) prosecute on behalf of the Debtors any proposed plan and
seek approval of all transactions contemplated therein and, in any
amendments, thereto; and
(i) perform all other necessary or desirable legal services in
connection with any such case under the Bankruptcy Code.
The hourly rates of the firm's counsel and staff are as follows:
Partners $830 - $950
Counsel $705
Associates $440 - $640
Paraprofessionals $330 - $350
In addition, the firm will seek reimbursement for expenses
incurred.
L. Katherine Good, Esq., an attorney at Potter Anderson & Corroon,
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:
L. Katherine Good, Esq.
Potter Anderson & Corroon LLP
1313 N. Market Street, 6th Floor
Wilmington, DE 19801
Telephone: (302) 984-6000
Facsimile: (302) 658-1192
Email: kgood@potteranderson.com
About Taronis Fuels
Taronis Fuels, Inc. and its affiliates manufacture and distribute
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.
Taronis Fuels and its affiliates sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 22-11121) on
Nov. 11, 2022. In the petitions signed by their chief executive
officer, R. Jered Ruyle, the Debtors estimated $10 million to $50
million in both assets and liabilities.
The Debtors tapped Potter Anderson & Corroon LLP as general
bankruptcy counsel; Aurora Management Partners, Inc. as
restructuring advisor; and Chipman Brown Cicero & Cole, LLP as
special litigation counsel. Donlin, Recano & Company Inc. is the
claims and noticing agent and administrative advisor.
TARONIS FUELS: Taps Aurora Management Partners to Provide CRO
-------------------------------------------------------------
Taronis Fuels, Inc. and its affiliates seek approval from the U.S.
Bankruptcy Court for the District of Delaware to employ Aurora
Management Partners, Inc. as restructuring advisor.
The firm will provide (i) Timothy Turek as chief restructuring
officer (CRO) of the Debtors; (ii) provide additional personnel;
and (iii) provide financial advisory and restructuring related
services to the Debtors.
Mr. Turek, with the assistance of the additional personnel, will
render these services:
(a) provide the services of the CRO, which would be equal to
the services typically provided by the office of the chief
operating officer, and Deputy Restructuring Officers to assist the
CRO;
(b) assist with the day-to-day operations of the Debtors;
(c) assist the Debtors in the implementation of the operating
business plans;
(d) manage the Debtors' Chapter 11 filings to maximize
compliance with their business plan;
(e) assist the Debtors' bankruptcy counsel in the preparation
of the Chapter 11 petition and Chapter 11 first day motions;
(f) prepare the Debtors' statement of financial affairs and
schedules of assets and labilities;
(g) attend the Debtors' meeting of creditors and court
hearings and testify at the meeting or hearings as necessary;
(h) manage the development, evaluation, negotiation, and
execution of any restructuring, liquidation or sale transaction;
(i) negotiate with existing lenders, creditors, and other
parties-in-interest in the implementation of a chosen transaction;
(j) provide timely updates to the Debtors' directors and
lenders and supplement with written materials and schedules as
needed; and
(k) all other items as agreed from time to time between the
Debtors and the firm.
The hourly rates of the firm's professionals are as follows:
David Baker, Managing Partner $725
Timothy Turek, Chief Restructuring Officer $595
Travis Grody, Associate Director $350
Andrew Pryts, Senior Consultant $250
Catherine Kendall, Administrative Manager $200
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a pre-bankruptcy retainer from the Debtors in
connection with this proposed engagement in the amount of
$200,000.
Mr. Turek 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:
Timothy Turek
Aurora Management Partners Inc.
401 North Michigan Ave., Suite 1620
Chicago, IL 60611
Telephone: (630) 291-5280
Email: tturek@auroramp.com
About Taronis Fuels
Taronis Fuels, Inc. and its affiliates manufacture and distribute
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.
Taronis Fuels and its affiliates sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 22-11121) on
Nov. 11, 2022. In the petitions signed by their chief executive
officer, R. Jered Ruyle, the Debtors estimated $10 million to $50
million in both assets and liabilities.
The Debtors tapped Potter Anderson & Corroon LLP as general
bankruptcy counsel; Aurora Management Partners, Inc. as
restructuring advisor; and Chipman Brown Cicero & Cole, LLP as
special litigation counsel. Donlin, Recano & Company Inc. is the
claims and noticing agent and administrative advisor.
TARONIS FUELS: Taps Chipman Brown Cicero & Cole as Special Counsel
------------------------------------------------------------------
Taronis Fuels, Inc. and its affiliates seek approval from the U.S.
Bankruptcy Court for the District of Delaware to employ Chipman
Brown Cicero & Cole, LLP as special litigation counsel.
The Debtors need a special counsel to assist in the investigation,
evaluation, and prosecution of certain Chapter 5 causes of action,
effective as of the retention date.
The firm will be compensated as follows:
(a) a contingency fee consisting of 33 percent of the net
amount of all cash and noncash financial benefits, or consideration
received or recovered by the Debtors; and
(b) noncash financial benefits or consideration.
William Chipman, Jr., a partner at Chipman Brown Cicero & Cole,
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:
William E. Chipman, Jr.
Chipman Brown Cicero & Cole, LLP
Hercules Plaza
1313 North Market Street, Suite 5400
Wilmington, DE 19801
Telephone: (302) 295-0193
Email: chipman@chipmanbrown.com
About Taronis Fuels
Taronis Fuels, Inc. and its affiliates manufacture and distribute
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.
Taronis Fuels and its affiliates sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 22-11121) on
Nov. 11, 2022. In the petitions signed by their chief executive
officer, R. Jered Ruyle, the Debtors estimated $10 million to $50
million in both assets and liabilities.
The Debtors tapped Potter Anderson & Corroon LLP as general
bankruptcy counsel; Aurora Management Partners, Inc. as
restructuring advisor; and Chipman Brown Cicero & Cole, LLP as
special litigation counsel. Donlin, Recano & Company Inc. is the
claims and noticing agent and administrative advisor.
TARONIS FUELS: Taps Donlin, Recano & Co. as Administrative Advisor
------------------------------------------------------------------
Taronis Fuels, Inc. and its affiliates seek approval from the U.S.
Bankruptcy Court for the District of Delaware to employ Donlin,
Recano & Company, Inc. as administrative advisor.
The firm will render these services:
(a) assist with, among other things, any required
solicitation, balloting, and tabulation and calculation of votes;
(b) generate an official ballot certification and testify, if
necessary, in support of the ballot tabulation results;
(c) handle requests for documents from parties-in-interest;
(d) gather data in conjunction with the preparation, and
assist with the preparation, of the Debtors' schedules of assets
and liabilities and statements of financial affairs;
(e) provide a confidential data room, if requested;
(f) manage and coordinate any distributions pursuant to a
confirmed Chapter 11 plan; and
(g) provide such other claims processing, noticing,
solicitation, balloting, and administrative services.
The hourly rates of the firm's professionals are as follows:
Senior Bankruptcy Consultant $140 - $172
Case Manager $128 - $140
Consultant/Analyst $104 - $124
Technology/Programming Consultant $76 - $96
Clerical $35 - $45
In addition, the firm will seek reimbursement for expenses
incurred.
Prior to the petition date, the Debtors provided the firm a
retainer in the amount of $10,000.
Nellwyn Voorhies, president of Donlin, Recano & Company, disclosed
in a court filing that the firm is a "disinterested person" as that
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Nellwyn Voorhies
Donlin, Recano & Company, Inc.
6201 15th Avenue
Brooklyn, NY 11219
Telephone: (212) 481-1411
About Taronis Fuels
Taronis Fuels, Inc. and its affiliates manufacture and distribute
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.
Taronis Fuels and its affiliates sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 22-11121) on
Nov. 11, 2022. In the petitions signed by their chief executive
officer, R. Jered Ruyle, the Debtors estimated $10 million to $50
million in both assets and liabilities.
The Debtors tapped Potter Anderson & Corroon LLP as general
bankruptcy counsel; Aurora Management Partners, Inc. as
restructuring advisor; and Chipman Brown Cicero & Cole, LLP as
special litigation counsel. Donlin, Recano & Company Inc. is the
claims and noticing agent and administrative advisor.
TRAYLOR CHATEAU: Case Summary & Five Unsecured Creditors
--------------------------------------------------------
Debtor: Traylor Chateau LLC
7251 Boellner Drive
Hazelwood, MO 63042
Business Description: The Debtor is a Single Asset Real Estate (as
defined in 11 U.S.C. Section 101(51B)).
Chapter 11 Petition Date: December 6, 2022
Court: United States Bankruptcy Court
Eastern District of Missouri
Case No.: 22-43815
Debtor's Counsel: Frank R. Ledbetter, Esq.
LEDBETTER LAW FIRM, LLC
141 N. Meramec Avenue, Suite 24
Saint Louis, MO 63105
Tel: 314-602-1431
Fax: 314-667-3804
Email: stlatty@gmail.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $500,000 to $1 million
The petition was signed by Rena T. Traylor as member.
A copy of the Debtor's list of five unsecured creditors is
available for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/UCIQCHQ/Traylor_Chateau_LLC__moebke-22-43815__0003.0.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/VPWOHIQ/Traylor_Chateau_LLC__moebke-22-43815__0001.0.pdf?mcid=tGE4TAMA
TRISEPTEM DEVELOPERS: Case Summary & Four Unsecured Creditors
-------------------------------------------------------------
Debtor: TriSeptem Developers. Inc.
2111 Sugar Creek Falls Drive, SE
Atlanta, GA 30316
Business Description: TriSeptem owns 3.04 Acres of land with all
utilities located at 3467 Benjamin E. Mays
Dr., SW Atlanta, GA, valued at $1.5 million.
Chapter 11 Petition Date: December 6, 2022
Court: United States Bankruptcy Court
Northern District of Georgia
Case No.: 22-59930
Debtor's Counsel: Robert Chambers, Esq.
LAW OFFICE OF ROBERT A CHAMBERS
6488 Spring Street Suite 103
Douglasville, GA 30134
Tel: 770-947-3540
Email: mrshmllgn@aol.com
Total Assets: $1,535,000
Total Liabilities: $542,000
The petition was signed by Al Cyris Johnson as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's four unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/QNOD7DY/TriSeptem_Developers_Inc__ganbke-22-59930__0001.0.pdf?mcid=tGE4TAMA
VSG ACQUISITION: Golub Values $101,000 Loan at 50% of Face
----------------------------------------------------------
Golub Capital BDC 3, Inc., has marked its $101,000 loan extended to
VSG Acquisition Corp. and Sherrill, Inc. to market at $51,000, or
50% of the outstanding amount, as of September 30, 2022, according
to a disclosure contained in Golub's Form 10-K filing for the year
ended September 30, 2022, filed with the Securities and Exchange
Commission on December 2.
Golub's One stop loan to VSG Acquisition Corp. and Sherrill, Inc.,
charges 9.31% in interest rate. The loan is scheduled to mature in
April 2028.
Golub is a business development company formed in August 2017 to
make investments and generate current income and capital
appreciation by investing primarily in one stop loans (a loan that
combines characteristics of traditional first lien senior secured
loans and second lien or subordinated loans that are often referred
to by other middle market lenders as unitranche loans) and other
senior secured loans of U.S. middle-market companies that are, in
most cases, sponsored by private equity firms.
Sherrill is a business supplies and equipment company offering
climbing gear, product development, and onsite testing.
WEATHERFORD INTERNATIONAL: S&P Hikes ICR to 'B', Outlook Stable
---------------------------------------------------------------
S&P Global Ratings raised the issuer credit and senior unsecured
ratings to 'B' from 'B-'. At the same time, S&P raised the senior
secured ratings to 'BB-' from 'B+'.
The outlook is stable reflecting S&P's expectation favorable
industry conditions over the next 12 to 24 months will support
continued margin and financial measure improvement.
Financial performance has significantly improved over previous
years.
S&P said, "We expect FFO/debt to average above 25% and debt/EBITDA
below 2.5x during the next 24 months compared with roughly 11% and
4x in 2021, respectively. Much improved industry conditions due to
increased drilling levels combined with equipment attrition have
supported improving margins and cash flows across most segments of
the oilfield services sector. In addition, Weatherford has
significantly reduced nonoperating expenses and during 2022 has
redeemed or in the process of redeeming $175 million of its 11%
senior notes due 2024 through cash flow and its cash on hand. We
expect Weatherford to continue to reduce debt using cash on hand
and operating cash flows."
The recently amended $400 million credit facility supports
improving liquidity.
The company's facility will provide for up to $310 million of
letters of credit and related items, as well as a revolving credit
facility of up to $90 million ($45 million currently available).
S&P said, "Although modest, the revolver re-engages Weatherford
with bank lenders, which we believe benefits liquidity by providing
a more permanent liquidity source. Although the new facility
requires minimum liquidity of $250 million, given the company's
Sept. 30, 2022, cash balance of $933 million and our expectation
for positive free cash flow in 2023, we do not currently see this
as an obstacle." Nevertheless, there is longer-term risk regarding
maturities of its $500 million senior secured notes due in 2028 and
$1.6 billion senior notes due 2030, which could be challenging to
refinance if capital markets do not significantly improve from
current weak conditions.
S&P said, "The stable outlook reflects our expectation that
Weatherford's cash flows and financial measures will continue to
improve over the next 12 to 24 months as domestic and international
oilfield services demand improves as exploration and production
(E&P) activity continues to recover. We expect FFO/debt to
comfortably exceed 25% and debt/EBITDA to remain below 2.5x during
this time, supported by healthy market conditions and recent cost
reductions.
"We could lower the rating on Weatherford if the market recovery
reverses leading to lower cash flows, and FFO/debt falls
substantially below 20% or expected debt/EBITDA is sustained above
4x. Additionally, we could lower ratings if liquidity materially
weakens without a near-term remedy. This most likely occurs as a
result of a significant fall in crude oil prices that significantly
pares drilling levels and resulting oilfield services activity.
"We could the raise ratings on the company if financial measures
continue to improve such that FFO/debt comfortably exceeds 30% and
debt/EBITDA approaches 2x on a sustained basis. At the same time,
for a rating upgrade we would need to see adequate liquidity and
further debt repayment."
ESG credit indicators: E-4, S-2, G-2
S&P said, "Environmental factors are a negative consideration in
our credit rating analysis on Weatherford International PLC due to
our expectation that the energy transition will result in lower
demand for services and equipment as accelerating adoption of
renewable energy sources lowers demand for fossil fuels.
Additionally, the industry faces an increasingly challenging
regulatory environment, both domestically and internationally, that
has included limits on fracking activity in certain jurisdictions,
as well as the pace of new and existing well permits. Finally, we
believe Weatherford's new management team has made significant
progress in addressing various issues that led to its 2019
bankruptcy, and we expect improvement to continue, as evidenced by
shrinking charges and improving cash flows that have bolstered
financial performance."
[^] Recent Small-Dollar & Individual Chapter 11 Filings
-------------------------------------------------------
In re Asmerom Berhe Ghebremicael, Sr.
Bankr. N.D. Cal. Case No. 22-41206
Chapter 11 Petition filed November 29, 2022
In re Purry & Son Trucking Corp
Bankr. S.D. Fla. Case No. 22-19096
Chapter 11 Petition filed November 29, 2022
See
https://www.pacermonitor.com/view/PYBAJVY/Purry__Son_Trucking_Corp__flsbke-22-19096__0001.0.pdf?mcid=tGE4TAMA
represented by: Ariel Sagre, Esq.
SAGRE LAW FIRM, P.A.
E-mail: law@sagrelawfirm.com
In re Ranjit Singh Gill and Joginder K Gill
Bankr. N.D. Ill. Case No. 22-81299
Chapter 11 Petition filed November 29, 2022
represented by: Howard Peritz, Esq.
In re Mary Ann P. O'Neill
Bankr. E.D.N.Y. Case No. 22-73372
Chapter 11 Petition filed November 29, 2022
represented by: Douglas Pick, Esq.
In re Stonewall Enterprises, Inc.
Bankr. N.D. Ga. Case No. 22-41469
Chapter 11 Petition filed November 30, 2022
See
https://www.pacermonitor.com/view/TR7FIFA/Stonewall_Enterprises_Inc__ganbke-22-41469__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Anthony Medina
Bankr. D. Kan. Case No. 22-11018
Chapter 11 Petition filed November 30, 2022
represented by: Mark Lazzo, Esq.
MARK J. LAZZO, ATTORNEY AT LAW
E-mail: mark@lazzolaw.com
In re ADG CMDOMS Management, LLC
Bankr. D. Md. Case No. 22-16623
Chapter 11 Petition filed November 30, 2022
See
https://www.pacermonitor.com/view/UJJWHBY/ADG_CMDOMS_Management_LLC__mdbke-22-16623__0001.0.pdf?mcid=tGE4TAMA
represented by: Steven L. Goldberg, Esq.
MCNAMEE HOSEA, P.A.
E-mail: sgoldberg@mhlawyers.com
In re Wingate Note Brokkers LLC
Bankr. D.N.J. Case No. 22-19470
Chapter 11 Petition filed November 30, 2022
See
https://www.pacermonitor.com/view/RRU5T3A/WINGATE_NOTE_BROKKERS_LLC__njbke-22-19470__0001.0.pdf?mcid=tGE4TAMA
represented by: Bruce W. Radowitz, Esq.
BRUCE W. RADOWITZ, ESQ. PA
E-mail: bradowitz@comcast.net
In re Certified Holding Trust
Bankr. D. Nev. Case No. 22-14238
Chapter 11 Petition filed November 30, 2022
See
https://www.pacermonitor.com/view/TEE57ZY/CERTIFIED_HOLDING_TRUST__nvbke-22-14238__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Autumn Cab, Corp.
Bankr. E.D.N.Y. Case No. 22-42981
Chapter 11 Petition filed November 30, 2022
See
https://www.pacermonitor.com/view/KF5ADXQ/Autumn_Cab_Corp__nyebke-22-42981__0001.0.pdf?mcid=tGE4TAMA
represented by: Alla Kachan, Esq.
LAW OFFICES OF ALLA KACHAN, P.C.
E-mail: alla@kachanlaw.com
In re Rutland 58 Corp
Bankr. E.D.N.Y. Case No. 22-42982
Chapter 11 Petition filed November 30, 2022
See
https://www.pacermonitor.com/view/KIQ6KJI/Rutland_58_Corp__nyebke-22-42982__0001.0.pdf?mcid=tGE4TAMA
represented by: Michael L. Previto, Esq.
MICHAEL L. PREVITO
E-mail: mchprev@aol.com
In re Archimedean Solutions LLC
Bankr. S.D.N.Y. Case No. 22-11599
Chapter 11 Petition filed November 30, 2022
See
https://www.pacermonitor.com/view/OX3UZQI/Archimedean_Solutions_LLC__nysbke-22-11599__0001.0.pdf?mcid=tGE4TAMA
represented by: Douglas Pick, Esq.
PICK & ZABICKI LLP
E-mail: dpick@picklaw.net
In re Anusha Gerard Silva
Bankr. C.D. Cal. Case No. 22-11402
Chapter 11 Petition filed December 1, 2022
represented by: Tamar Terzian, Esq.
In re Gunther General Contracting Services, Inc.
Bankr. M.D. Fla. Case No. 22-04295
Chapter 11 Petition filed December 1, 2022
See
https://www.pacermonitor.com/view/7ZXKTMQ/Gunther_General_Contracting_Services__flmbke-22-04295__0001.0.pdf?mcid=tGE4TAMA
represented by: Kenneth D. Herron, Jr., Esq.
HERRON HILL LAW GROUP, PLLC
E-mail: chip@herronhilllaw.com
In re C G F & T, LLC
Bankr. M.D. Ga. Case No. 22-51453
Chapter 11 Petition filed December 1, 2022
See
https://www.pacermonitor.com/view/37MJW4Q/C_G_F__T_LLC__gambke-22-51453__0001.0.pdf?mcid=tGE4TAMA
represented by: Wesley J. Boyer, Esq.
BOYER TERRY LLC
E-mail: Wes@BoyerTerry.com
In re Sherman G. Baggarley, Jr. and Cynthia W. Baggarley
Bankr. M.D. Ga. Case No. 22-51454
Chapter 11 Petition filed December 1, 2022
In re Sean Philip Warren and Lisa Danielle Warren
Bankr. E.D. La. Case No. 22-11487
Chapter 11 Petition filed December 1, 2022
represented by: Robin DeLeo, Esq.
In re R & D Carpenter Holdings, LLC
Bankr. W.D. La. Case No. 22-50815
Chapter 11 Petition filed December 1, 2022
See
https://www.pacermonitor.com/view/RYFGPVQ/R__D_Carpenter_Holdings_LLC__lawbke-22-50815__0001.0.pdf?mcid=tGE4TAMA
represented by: D. Patrick Keating, Esq.
THE KEATING FIRM, APLC
E-mail: rick@dmsfirm.com
In re 6014 AH LLC
Bankr. E.D.N.Y. Case No. 22-42996
Chapter 11 Petition filed December 1, 2022
See
https://www.pacermonitor.com/view/7TZHTDA/6014_AH_LLC__nyebke-22-42996__0001.0.pdf?mcid=tGE4TAMA
represented by: Michael L. Walker, Esq.
THE LAW OFFICES OF MICHAEL L. WALKER,
ESQ., PLLC
E-mail: mwalker@michaelwalkerlaw.com
In re Frank Gallina
Bankr. E.D.N.Y. Case No. 22-73408
Chapter 11 Petition filed December 1, 2022
represented by: Fred Kantrow, Esq.
In re Richelle Lee West
Bankr. M.D. Tenn. Case No. 22-03874
Chapter 11 Petition filed December 1, 2022
In re Kristen Adams
Bankr. M.D. Fla. Case No. 22-02431
Chapter 11 Petition filed December 2, 2022
In re William Parker Battaglia
Bankr. M.D. Fla. Case No. 22-04304
Chapter 11 Petition filed December 2, 2022
represented by: R Scott Shuker, Esq.
In re 5 Shore DriveKP, Inc
Bankr. E.D.N.Y. Case No. 22-73422
Chapter 11 Petition filed December 2, 2022
See
https://www.pacermonitor.com/view/CL7RJZA/5_Shore_DriveKP_Inc__nyebke-22-73422__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Istanbul Rego Park, Inc.
Bankr. E.D.N.Y. Case No. 22-43000
Chapter 11 Petition filed December 2, 2022
See
https://www.pacermonitor.com/view/7G5YKEA/Istanbul_Rego_Park_Inc__nyebke-22-43000__0001.0.pdf?mcid=tGE4TAMA
represented by: Alla Kachan, Esq.
LAW OFFICES OF ALLA KACHAN, P.C.
E-mail: alla@kachanlaw.com
In re P4L Realty and Rentals LLC
Bankr. W.D. Pa. Case No. 22-22386
Chapter 11 Petition filed December 2, 2022
See
https://www.pacermonitor.com/view/MJZRD7A/P4L_Realty_and_Rentals_LLC__pawbke-22-22386__0001.0.pdf?mcid=tGE4TAMA
represented by: Christopher M. Frye, Esq.
STEIDL & STEINBERG, P.C.
E-mail: chris.frye@steidl-steinberg.com
In re Trapp Tree Service LLC
Bankr. D.S.C. Case No. 22-03307
Chapter 11 Petition filed December 2, 2022
See
https://www.pacermonitor.com/view/EX6GORA/Trapp_Tree_Service_LLC__scbke-22-03307__0001.0.pdf?mcid=tGE4TAMA
represented by: William J. Barr, Esq.
BARR LAW LLC
E-mail: barrlaw@ftc-i.net
In re Kyodai FTW LLC
Bankr. N.D. Tex. Case No. 22-42914
Chapter 11 Petition filed December 2, 2022
See
https://www.pacermonitor.com/view/NNHHHHY/Kyodai_FTW_LLC__txnbke-22-42914__0001.0.pdf?mcid=tGE4TAMA
represented by: Robert C. Lane, Esq.
THE LANE LAW FIRM
E-mail: notifications@lanelaw.com
In re Kyodai Handroll & Seafood Bar LLC
Bankr. N.D. Tex. Case No. 22-42915
Chapter 11 Petition filed December 2, 2022
See
https://www.pacermonitor.com/view/NLTJMCQ/Kyodai_Handroll__Seafood_Bar__txnbke-22-42915__0001.0.pdf?mcid=tGE4TAMA
represented by: Robert C. Lane, Esq.
THE LANE LAW FIRM
E-mail: notifications@lanelaw.com
In re Kyodai Sushi & Handroll Bar LLC
Bankr. N.D. Tex. Case No. 22-42916
Chapter 11 Petition filed December 2, 2022
See
https://www.pacermonitor.com/view/NX5L52I/Kyodai_Sushi__Handroll_Bar_LLC__txnbke-22-42916__0001.0.pdf?mcid=tGE4TAMA
represented by: Robert C. Lane, Esq.
THE LANE LAW FIRM
E-mail: notifications@lanelaw.com
In re Alexander E. Jones
Bankr. S.D. Tex. Case No. 22-33553
Chapter 11 Petition filed December 2, 2022
represented by: Vickie L. Driver, Esq.
CROWE & DUNLEVY, P.C.
E-mail: Dallaseservice@crowedunlevy.com
In re CannaBama, LLC
Bankr. S.D. Ala. Case No. 22-12479
Chapter 11 Petition filed December 5, 2022
See
https://www.pacermonitor.com/view/SEUYTYQ/CannaBama_LLC__alsbke-22-12479__0001.0.pdf?mcid=tGE4TAMA
represented by: Barry A. Friedman, Esq.
BARRY A FRIEDMAN & ASSOCIATES, PC
E-mail: bky@bafmobile.com
In re Randall Todd Hunter
Bankr. E.D. Ark. Case No. 22-13393
Chapter 11 Petition filed December 5, 2022
In re True Coat Painting, LLC
Bankr. N.D. Ga. Case No. 22-21225
Chapter 11 Petition filed December 5, 2022
See
https://www.pacermonitor.com/view/4YFLTFA/True_Coat_Painting_LLC__ganbke-22-21225__0001.0.pdf?mcid=tGE4TAMA
represented by: Robert Gardner, Esq.
ROBERT M. GARDNER, P.C.
E-mail: rg@gardnerlawfirm.com
In re Mass Productions, Inc.
Bankr. N.D. Ga. Case No. 22-59871
Chapter 11 Petition filed December 5, 2022
See
https://www.pacermonitor.com/view/5DIHUJA/Mass_Productions_Inc__ganbke-22-59871__0001.0.pdf?mcid=tGE4TAMA
represented by: William A. Rountree, Esq.
ROUNTREE, LEITMAN KLEIN & GEER, LLC
E-mail: swenger@rlklawfirm.com
In re Right Away Pallets, Inc.
Bankr. N.D. Ill. Case No. 22-14036
Chapter 11 Petition filed December 5, 2022
See
https://www.pacermonitor.com/view/4CGVZHI/Right_Away_Pallets_Inc__ilnbke-22-14036__0001.0.pdf?mcid=tGE4TAMA
represented by: Anthony J. Peraica, Esq.
ANTHONY J. PERAICA & ASSOCIATES, LTD.
E-mail: support@peraica.com
In re Ganesh AA Corp
Bankr. N.D. Tex. Case No. 22-70211
Chapter 11 Petition filed December 5, 2022
See
https://www.pacermonitor.com/view/OKIWBRQ/Ganesh_AA_Corp__txnbke-22-70211__0001.0.pdf?mcid=tGE4TAMA
represented by: Eric A. Liepins, Esq.
ERIC A. LIEPINS
E-mail: eric@ealpc.com
*********
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