/raid1/www/Hosts/bankrupt/TCR_Public/221222.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 22, 2022, Vol. 26, No. 355
Headlines
2 MONKEY: Seeks Approval to Hire Nardella & Nardella as Counsel
21ST CENTURY VALET: Seeks Cash Collateral Access
2ND CHANCE: Case Summary & 20 Largest Unsecured Creditors
A CAB SERIES: Hits Chapter 11 Bankruptcy Protection
AKUMIN INC: Appoints Two New Directors
ARETE REHABILITATION: Court OKs Interim Cash Collateral Access
AUTO MONEY: Gets OK to Hire Donlin Recano & Co. as Claims Agent
AUTO MONEY: Gets OK to Hire Waldrep as Bankruptcy Counsel
AUTO MONEY: Gets OK to Tap Haynsworth Sinkler Boyd as Local Counsel
AVAYA HOLDINGS: Board Appoints Jill Frizzley as Director
BETTER NUTRITIONALS: Case Summary & 20 Top Unsecured Creditors
BULLSTRAP LLC: Wins Cash Collateral Access on Final Basis
CARVANA CO.: Faces Possible Bankruptcy Due to Cash Deficit
CELSIUS NETWORK: KeyFi and Stone's Bid for Dismissal Denied
CENTURY ALUMINUM: Givolon, Three Others Cease to be Shareholders
CENTURY ALUMINUM: Glencore Has 42.9% Stake as of Dec. 15
CHICK LUMBER: Gets Court Nod to Use Cash Collateral Thru March 31
CLAIRMONT PLACE: No Decline in Resident Care, 6th PCO Report Says
CLEAN ENERGY: Unit Signs Deal to Develop Pyrolysis Plant
COASTAL DRILLING: Court OKs Cash Collateral Access Thru Dec 31
COASTAL LANDFILL: Taps Shelly May Johnson as Special Counsel
CONNECTICUT RESTORATION: Taps Bottaro Morrill & Co as Accountant
CORE SCIENTIFIC: Case Summary & 30 Largest Unsecured Creditors
CORE SCIENTIFIC: Crypto Miner Goes Belly Up, Has $57MM DIP Loan
CORE SCIENTIFIC: Directors Adopt Key Employee Retention Plan
CORE SCIENTIFIC: Falls Short of Nasdaq Bid Price Requirement
CROSSETT FORD: 8th Cir. Affirms Default Judgment Against PIRS
DEXTER GROUP: Gets OK to Hire Latham as Bankruptcy Counsel
DGS REALTY: Wins Cash Collateral Access Thru Feb 2023
DURA-METRICS INC: Has Cash Collateral Access Thru January 13
EAGLE BEAR: Gets OK to Hire Baldwin Law Firm as Special Counsel
EAGLE DUNES OWNERS: Case Summary & Eight Unsecured Creditors
EMPLOYEE LOAN: Seeks Cash Collateral Access Thru Feb 2023
ENERGY DRILLING: Appointment of Examiner Sought
ESJ TOWERS: Gets OK to Hire Special Counsel in Chubb Insurance Suit
EVERYTHING BLOCKCHAIN: Delays Filing of Oct. 31 Quarterly Report
FLAVORWORKS INC: Taps Law Offices of Avrum J. Rosen as Counsel
FLORIDA INTERNATIONAL: U.S. Trustee Unable to Appoint Committee
FM SOLUTIONS: FM Unsecureds to Split $10K via Quarterly Payments
FREE SPEECH: Court OKs Interim Cash Collateral Access
FROZEN WHEELS: Seeks Cash Collateral Access
FTX GROUP: U.S. Prosecutor Considers SBF Vast Fraud Leader
GABHALTAIS TEAGHLAIGH: Bid to Use Cash Collateral Denied
GAUCHO GROUP: Maria Echevarria to Remain as CFO
GISSING NORTH AMERICA: Wins Cash Collateral Access, DIP Loan
GREGORY TE VELDE: U.S. Farm Settlement Agreement Denied
GROM SOCIAL: CVI Investments, Heights Capital Hold 8% Equity Stake
GROM SOCIAL: Lind Global Reports 9.9% Stake as of Dec. 9
HOOK FISH: To File Plan and Disclosure on Feb. 28
INFINITE SYNERGY: Court OKs Cash Collateral Access
INN S.F. ENTERPRISE: Unsecureds to Get 6-8 Cents on Dollar in Plan
J AND M SUPPLY: Bid for Turnover to Satisfy Judgment Debt Denied
KENNETH J. TAGGART: Appellees Bid to Dismiss Appeals Granted
KOPIN CORP: CEO Michael Murray Appointed as Director
KTS SOLUTIONS: Seeks $750,000 DIP Loan from Action Capital
LACHAETINERIA LLC: Seeks to Hire Jones and Walden as Counsel
LANNETT CO: To Cut Workforce by 11% as Part of Restructuring Plan
LAS VEGAS SKYDIVING: Unsecured Creditors to Split $228K in Plan
LASHLINER INC: Amends Unsecureds & Platt Cheema Secured Claims
LEGACY EJY: Gen. Unsecureds Owed $26.5M to Get 46% to 64% in Plan
LEVINSON & SANTORO: Seeks to Hire Kirby Aisner & Curley as Counsel
LGID NY: Case Summary & Five Unsecured Creditors
LUCCI RESTAURANT: Unsecureds to Recover 2.95% over 5 Years
MANCUSO MOTORSPORTS: Files Emergency Bid to Use Cash Collateral
MARLIN KRIDER: Court OKs Interim Cash Collateral Access
MONTGOMERY REALTY: Case Summary & 14 Unsecured Creditors
MONTROSE MULTIFAMILY: Court OKs Cash Collateral Access Thru Dec 31
MOUNTAIN MOVING: Seeks Cash Collateral Access
MOUNTAIN PROVINCE: Shareholders OKs Refinancing Transaction
NORTH AMERICAN ACCEPTANCE: Commences Subchapter V Case
NORTH AMERICAN: NARCO Asbestos Trust Buyout Agreement Approved
O'MY FOODS LLC: Dairy-Free Desserts Maker Files Subchapter V Case
PACIFIC PLEASANT: Unsecureds to Get Share of Income for 3 Years
PENTA STATE LLC: U.S. Trustee Unable to Appoint Committee
PENTA STATE: Court OKs Interim Cash Collateral Access
PHASEBIO PHARMACEUTICALS: Committee Taps McDermott as Legal Counsel
PIPELINE HEALTH: PCO Files First Interim Report
PLEASANT POINT: Unsecureds to Get Share of Income for 3 Years
POLICY SERVICES: Transamerica Partial Motion to Dismiss Granted
PREMIER GRILLING: Court OKs Cash Access, $500,000 DIP Loan
PREMIER GRILLING: Starts Chapter 11 Bankruptcy Process
PRESCOTT BREWING: Gets OK to Hire New Mill Capital as Auctioneer
PUERTO RICO: Oversight Board Files Plan for PREPA
R & E PETROLEUM: Wins Interim Cash Collateral Access
REDEEMED CHRISTIAN: Gets OK to Hire G&M Services as Broker
RENEWABLE ENERGY: Seeks to Hire Philip R. Beck & Co. as Appraiser
RWDY INC: Case Summary & 20 Largest Unsecured Creditors
SERTA SIMMONS BEDDING: Prepares Chapter 11 Bankruptcy Filing
SINTX TECHNOLOGIES: All Five Proposals Passed at Annual Meeting
SPECIAL UNIT SECURITY: Taps Markarian & Associates as Accountant
TK HOLDINGS: Montreal's Bid to Reinstate Dismissal Order Denied
TSS ACQUISITION: Files Emergency Bid to Use Cash Collateral
TUFF TURF: Seeks Approval to Hire W M Law as Bankruptcy Counsel
VELOCIOUS DELIVERY: Wins Interim Access to Cash Collateral
VENUS CONCEPT: Gets 180-Day Extension to Regain Nasdaq Compliance
VICE BAR: Court OKs Cash Collateral Access Thru March 2023
VILLAS OF COCOA: Two New Committee Members Appointed
VITAL PHARMACEUTICALS: Creditors Defend Creation of Separate Panel
WC BRAKER: Trustee Gets OK to Hire AMG II as Property Manager
[*] 8 Restaurant Bankruptcies in 2022
[^] Recent Small-Dollar & Individual Chapter 11 Filings
*********
2 MONKEY: Seeks Approval to Hire Nardella & Nardella as Counsel
---------------------------------------------------------------
2 Monkey Trading, LLC and Lucky Shot USA, LLC seek approval from
the U.S. Bankruptcy Court for the Middle District of Florida to
hire Nardella & Nardella, PLLC as its legal counsel.
The firm's services include:
a. advising the Debtor concerning the operation of its
business in compliance with Chapter 11 and orders of the court;
b. defending any causes of action on behalf of the Debtor;
c. preparing legal papers;
d. assisting in the formulation of a plan of reorganization
and preparation of a disclosure statement;
e. other services of a legal nature in the field of bankruptcy
law.
The firm will be paid at these rates:
Partners $425 per hour
Associates $295 per hour
Paralegals $225 per hour
In addition, the firm will seek reimbursement for expenses
incurred.
The retainer fee is $20,000.
Jonathan Sykes, Esq., a partner at Nardella & Nardella, 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:
Jonathan M. Sykes, Esq.
Nardella & Nardella, PLLC
135 W. Central Blvd., Suite 300
Orlando, FL 32801
Telephone: (407) 966-2680
Email: jsykes@nardellalaw.com
About 2 Monkey Trading
2 Monkey Trading, LLC, a company in Orlando, Fla., sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
M.D. Fla. Case No. 22-04099) on Nov. 17, 2022, with up to $500,000
in assets and up to $10 million in liabilities. Douglas Ingalls,
manager, signed the petition.
Judge Tiffany P. Geyer oversees the case.
Michael A. Nardella, Esq., at Nardella and Nardella, PLLC is the
Debtor's counsel.
21ST CENTURY VALET: Seeks Cash Collateral Access
------------------------------------------------
21st Century Valet Parking, LLC asks the U.S. Bankruptcy Court for
the Central District of California, San Fernando Division, for
authority to use cash collateral.
The Debtor requires the use of cash collateral to continue
uninterrupted operation of its business.
The cash collateral consists of the Debtor's assets, receivables
and any other property of the Debtor. There is a security interest
against the Property held by secured creditor Mariam Khachatryan,
by virtue of a perfected UCC statement recorded against Debtor's
assets in the outstanding amount of $181,750. Pursuant to the
parties' agreement, the Debtor was obligated to pay $7,2700 to the
Secured Creditor. The parties had originally stipulated to continue
paying the Secured Creditor said amount in exchange for use of the
cash collateral. The Court denied the Debtor's motion to approve
the stipulation deeming the amount to be paid to the Secured
Creditor excessive.
The Debtor seeks to use the Secured Creditor's cash collateral and
continue making payments to the Secured Creditor in the amount of
$2,500 per month, without any prejudice to its right to prose an
alternative treatment of the Secured Creditor's claim in the
chapter 11 Plan of Reorganization.
The Secured Creditor's security interest arose from the Debtor's
purchase of the business from the Creditor's assignor Star Garden
Enterprise in October 2021. At that time the Debtor executed a
promissory note and a UCC-1 Statement in favor of Star Garden to
finance a portion of the purchase price paid for the business. On
May 23, 2022, Star Garden Enterprise was dissolved. However, as
part of its dissolution proceedings, the rights under the under the
UCC Statement were assigned to Mariam Khachatryan.
The outstanding balance on the Note is $181,7500, and the note
provides for monthly payments of $7,770 per month to the Creditor.
The Debtor asserts the use of cash collateral should be permitted
because the Secured Creditor's secured loan is adequately
protected. Additionally, the Secured Creditor will receive certain
adequate protection payments on its secured loan.
The Secured Creditor consents to the use of the cash collateral for
the ongoing operation of the Debtor's business, satisfying 11
U.S.C. Section 363(c)(2)(A).
A copy of the motion and the Debtor's budget is available at
https://bit.ly/3G6qI4j from PacerMonitor.com.
The Debtor projects $30,100 in total income and $25,874 in total
expenses for January 28, 2022.
About 21st Century Valet Parking, LLC
21st Century Valet Parking, LLC sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 22-11415) on
December 6, 2022. In the petition signed by Stepan Kazaryan,
managing member, the Debtor disclosed up to $50,000 in assets and
up to $500,000 in liabilities.
Vahe Khojayan, Esq., at YK Law, LLP, is the Debtor's counsel.
2ND CHANCE: Case Summary & 20 Largest Unsecured Creditors
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Debtor: 2nd Chance Investment Group, LLC
600 W. Santa Ana Blvd.
PMB 5045
Santa Ana, CA 92701
Business Description: The Debtor owns in fee simple title 13 real
properties located in various locations in
California and Washington having an
aggregate value of $7.02 million.
Chapter 11 Petition Date: December 21, 2022
Court: United States Bankruptcy Court
Central District of California
Case No.: 22-12142
Debtor's Counsel: Amanda G. Billyard, Esq.
FINANCIAL RELIEF LAW CENTER, APC
1200 Main St., Suite C
Irvine, CA 92614
Tel: 714-442-3349
Email: abillyard@bwlawcenter.com
Total Assets: $7,221,261
Total Liabilities: $11,002,949
The petition was signed by Rayshon A. Foster as managing member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/4JDJMGI/2nd_Chance_Investment_Group_LLC__cacbke-22-12142__0001.0.pdf?mcid=tGE4TAMA
A CAB SERIES: Hits Chapter 11 Bankruptcy Protection
---------------------------------------------------
A CAB Series LLC filed for chapter 11 protection in the District of
Nevada. The Debtor elected on its voluntary petition to proceed
under Subchapter V of chapter 11 of the Bankruptcy Code.
The Debtor owns and operates a taxi service in Las Vegas, Nevada.
The Debtor
also has an operating subsidiary, but that is not a Chapter 11
debtor.
The Debtor has only one secured creditor. On May 30, 2020, the
Debtor obtained an Economic Injury Disaster Loan (the "SBA Loan")
from the U.S. Small Business Administration in the original
principal amount of $150,000. The SBA Loan was evidenced by a Loan
Authorization Agreement and Note, which required the Debtor to pay
$731 monthly beginning in June 2021, and continuing each and every
month thereafter until paid in full 30 years later. Pursuant to a
Security Agreement, the Debtor pledged a security interest in
substantially all of its personal property as collateral to secure
repayment of the SBA Loan, and the SBA thereafter perfected its
security interest in certain of its collateral by filing a UCC-1
financing statement (the "Financing Statement") with the Nevada
Secretary of State on June 12, 2022. The Debtor has been regularly
paying the SBA Loan on a monthly basis prepetition, and remains
current on the obligation.
The Debtor also has substantial tax debts owing to the Internal
Revenue Service. Specifically, for tax year 2016, the Debtor owes
the IRS the sum of $282,245, which the Debtor has been attempting
to make payments on pre-petition over time, but this substantial
balance remains. Given the age of this tax debt from 2016, the
Debtor believes that it is not a priority claim pursuant to section
507(a)(8) of the Bankruptcy Code. The Debtor also has an estimated
tax obligation for tax year 2022 of roughly $300,000, which
presumably is a priority tax debt given how recent the obligation
arose.
Since 2012, the Debtor has also been a party to a class action
litigation pending in the Eighth Judicial District Court, Clark
County, Nevada, styled as Murray, et al. v. A Cab, Series L.L.C.,
Case No. A-12-669926-C. This litigation involved claims by former
taxi drivers for alleged violation of the Nevada Minimum Wage Act
under the Constitution of the State of Nevada.
On August 21, 2018, the Nevada State Court entered final judgment
in favor of the class action plaintiffs, which was subsequently
amended by its Order entered Oct. 22, 2018 against the Debtor. The
Debtor appealed that final judgment and certain post-judgment
orders to the Nevada Supreme Court.
On April 12, 2019, various petitioning creditors, including the
class action
plaintiffs and their counsel, filed an involuntary chapter 7
petition against the Debtor, which was commenced as Case No.
19-12252-mkn, however, on Sept. 26, 2019, the Court granted a
motion to abstain from the proceeding in form of a dismissal
pursuant to section 305(a) of the Bankruptcy Code.
On December 31, 2021, the Nevada Supreme Court issued an opinion
and remittitur, which directed certain modifications to the class
action plaintiffs' final judgment, including a reduction of the
amount of damages previously awarded to them.
On Nov. 17, 2022, the Nevada State Court on remand entered several
orders, which directed the Clerk to enter judgment in favor of 890
individual class members in the amount of $685,887 as of Aug. 21,
2018, together with post-petition interest accruing thereon. The
foregoing order involves alleged wages owing for the period of Oct.
8, 2010 through Dec. 31, 2015, and thus given their timing of those
claims, they are well outside the 180-day lookback period for
priority treatment pursuant to section 507(a)(4) of the Bankruptcy
Code, and thus they are, at best, general unsecured claims.
The Debtor intends on appealing the Nevada State Court's decisions,
and has retained appellate counsel for that purpose, which appeal
it intends on prosecuting fully and notwithstanding this Chapter 11
Case. Regardless, the foregoing litigation and related litigations
have been very expensive and time consuming for the Debtor to
prosecute and defend, and in fact, they have generated numerous
appeals and/or writs of mandamus to the Nevada Supreme Court over
the years.
Upon information and belief, similar wage and hour litigation
commenced by the same class action plaintiffs' counsel as in the
case at hand also resulted in a bankruptcy filing in 2020 by
another unrelated cab company in Las Vegas, see In re Boulder Cab,
Inc., Case No. 20-13069-abl.
Finally, the Debtor is also currently a defendant in at least five
unrelated auto negligence cases also pending in Nevada State Court,
which litigations remain pending and unresolved, and which also
involve potentially large unliquidated and disputed liabilities.
Accordingly, to bring about a resolution of all of these matters in
a more economical and efficient manner, while preserving its
operations to protect value and avoid the severe disruption, if not
complete shutdown, that would occur if the class action judgment
were enforced, the Debtor sought bankruptcy reorganization.
According to court filings, A CAB Series LLC estimates between $1
million and $10 million in debt owed to 200 to 999 creditors. The
petition states that funds will be available to unsecured
creditors.
About A CAB Series LLC
A CAB Series LLC -- https://www.acablv.com/ -- offers cab services
in Las Vegas, Nevada.
A CAB Series LLC filed a petition for relief under Subchapter V of
Chapter 11 of the Bankruptcy Code (Bankr. D. Nev. Case No.
22-14361) on Dec. 12, 2022. In the petition filed by Creighton J.
Nady, as manager, the Debtor reported assets and liabilities
between $1 million and $10 million.
The Debtor is represented by:
Matthew C. Zirzow, Esq.
LARSON & ZIRZOW, LLC
1500 SEARLES AVENUE
LAS VEGAS, NV 89101
AKUMIN INC: Appoints Two New Directors
--------------------------------------
Akumin Inc. announced that John Wagner and Lawrence Ross Sinclair
will join its board of directors effective Jan. 1, 2023. Mr.
Sinclair will also be appointed a member of the audit committee of
the Company effective Jan. 1, 2023. Mr. Wagner is a nominee of SCW
Capital Management, LP, which through its affiliates currently
holds an approximate 12.7% interest in the common stock of Akumin
(calculated on a non-diluted basis).
"We have strengthened our board of directors with the addition of
John Wagner, who represents a long-term shareholder that believes
in our strategic direction and continues to support the future
value creation of our asset base, and Ross Sinclair, who brings
significant audit and financial reporting experience," said Riadh
Zine, chairman and chief executive officer of the Company.
Mr. Wagner is a co-founder and co-managing partner of SCW Capital
which is an equity investment fund focused on domestic public
equities where he focuses on the healthcare technology and service
sectors (2014-present). In addition to SCW Capital, Mr. Wagner is
the co-founder and managing partner for Viewside Capital Partners.
Viewside Capital Partners is a private equity firm focused on
growth equity investments in the healthcare technology and service
sectors. Mr. Wagner is currently a member of the board of
directors for D2 Solutions, Benefit Harbor, Strivant Health, and
Flow Therapy. Prior to current roles, Mr. Wagner was the CFO of
Healthcare Payment Specialists, a private equity owned healthcare
IT company (2012-2013), a partner with Walker Smith Capital
responsible for investments within the healthcare industry
(2003-2012), an Associate in the Healthcare Investment Banking
Group at UBS and an Analyst in the Healthcare Corporate Finance
Group at Bank of America (1999-2003). Mr. Wagner graduated from
the University of Texas with a Bachelor of Business Administration
in Finance.
Mr. Sinclair was a partner with PricewaterhouseCoopers LLP and has
more than 25 years of experience as a partner. He retired from PwC
on June 30, 2020 and has worked since July 2021 as a Senior
Financial Consultant for the Real Estate Group of Fengate Asset
Management and a Trustee with Enterprise REIT since March 2022.
Mr. Sinclair has had extensive experience across several industries
including consumer products, retail, real estate, health care and
private equity. He has worked advising on critical business
issues, transactions, and restructurings in addition to his
experience as a lead audit partner on both public and private
enterprises. Mr. Sinclair's experience includes PwC Canada
leadership roles as Income Trust and IPO Services Group Leader. He
has significant experience working with clients on their capital
markets projects and needs including numerous equity, debt and
initial public offering and RTOs. In addition to serving as the
audit partner on many public companies across various reporting
frameworks including US GAAP, and IFRS, Mr. Sinclair was a
designated Trustee on the Continuum REIT IPO in the fall of 2019,
a director of Nova Cannabis Inc from its March 2021 RTO to April
2022 and is an Advisory Board member and investor in Arch
Corporation. Mr. Sinclair graduated from the University of Toronto
with a Bachelor of Commerce and is a Chartered Professional
Accountant.
About Akumin
Akumin Inc. -- www.akumin.com -- provides fixed-site outpatient
diagnostic imaging services through a network of approximately 200
owned and/or operated imaging locations; and outpatient radiology
and oncology services and solutions to approximately 1,000
hospitals and health systems across 46 states. Its imaging
procedures include magnetic resonance imaging ("MRI"), computerized
tomography ("CT"), positron emission tomography, ultrasound,
diagnostic radiology (X-ray), mammography, and other related
procedures. Akumin's cancer care services include a full suite of
radiation therapy and related offerings.
Akumin reported a net loss of $34.81 million for the year ended
Dec. 31, 2021, compared to a net loss of $34.15 million for the
year ended Dec. 31, 2020. For the nine months ended Sept. 30,
2022, Akumin had a net loss of $102.25 million.
* * *
As reported by the TCR on Nov. 30, 2022, Moody's Investors Service
downgraded Akumin Inc.'s corporate family rating to Caa2 from B3.
The downgrade reflects Moody's view that Akumin's capital structure
is becoming unsustainable given the company's weak operating
performance, integration challenges and very high financial
leverage.
ARETE REHABILITATION: Court OKs Interim Cash Collateral Access
--------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Massachusetts,
Eastern Division, authorized Arete Rehabilitation, Inc. to use the
cash and other collateral claimed by Bridge Capital-NewCo Capital
Group VI, LLC and Independence Bank, on an interim basis.
The Debtor is authorized to collect and use those prepetition
assets in which the Secured Creditors claim a security interest,
provided, however, that pursuant to Fed. R. Bankr. P. 4001(b)(2)
and pending entry of a final order, the Debtor will use and expend
only that amount of asserted cash collateral as is necessary to
avoid immediate and irreparable harm to the Debtor's estate.
As adequate protection, the Debtor will grant continuing
replacement liens and security interests having the same validity,
extent, and priority that each would have had in the absence of the
bankruptcy filing.
The final hearing on the matter is set for January 5, 2023 at 1
p.m. Objections are due December 30.
A copy of the order is available at https://bit.ly/3j8wc6t from
PacerMonitor.com.
About Arete Rehabilitation
Arete Rehabilitation, Inc. -- https://www.areterehab.com/ --
specializes in older adult care, Arete Rehab provides physical,
occupational, and speech therapy services in the northeast.
Arete Rehabilitation filed a petition for relief under Subchapter V
of Chapter 11 of the Bankruptcy Code (Bankr. D. Mass. Case No.
22-11661) on Nov. 15, 2022, with up to $1 million in assets and up
to $10 million in liabilities. James S. LaMontagne has been
appointed as Subchapter V trustee.
The Debtor filed a prior Chapter 11 Case in the U.S. Bankruptcy
Court for the District of New Hampshire on September 28, 2022 (Case
No. 22-10477 -BAH) which was dismissed on Nov. 10, 2022.
Judge Christopher J Panos oversees the case.
The Debtor is represented by Joshua A. Burnett, Esq. at Amann
Burnett, PLLC.
AUTO MONEY: Gets OK to Hire Donlin Recano & Co. as Claims Agent
---------------------------------------------------------------
Auto Money North, LLC received approval from the U.S. Bankruptcy
Court for the District of South Carolina to hire Donlin, Recano &
Company, Inc. as its claims and noticing agent.
The firm will oversee the distribution of notices and will assist
in the maintenance, processing and docketing of proofs of claim
filed in the Debtor's Chapter 11 case.
The firm's hourly rates are as follows:
Executive Management No charge
Senior Bankruptcy Consultant $175 - $215 per hour
Case Manager $160 - $175 per hour
Consultant/ Analyst $130 - $155 per hour
Technology/Programming Consultant $95 - $120 per hour
Clerical $35 - $45 per hour
The retainer fee is $10,000.
Nellwyn Voorhies, executive director of Donlin, disclosed in court
filings that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
Donlin can be reached at:
Nellwyn Voorhies
Donlin, Recano & Company, Inc.
6201 15th Avenue
Brooklyn, NY 11219
Tel: (800) 591-8236
About Auto Money North
Auto Money North, LLC, doing business as Auto Money Title Loans
North, provides title loans and title pawns to residents of South
Carolina and Georgia. The company is based in Fort Mill, S.C.
Auto Money North filed a petition for relief under Subchapter V of
Chapter 11 of the Bankruptcy Code (Bankr. D.S.C. Case No. 22-03309)
on Dec. 2, 2022. In the petition filed by its manager, Mark Allen,
the Debtor reported assets between $500,000 and $1 million and
liabilities between $1 million and $10 million.
Judge Helen E. Burris oversees the case.
Thomas W. Waldrep, Jr., Esq., at Waldrep Wall Babcock & Bailey,
PLLC and Stanley H. McGuffin, Esq., at Haynsworth Sinkler Boyd,
P.A. are the Debtor's bankruptcy counsel and local counsel,
respectively. Donlin, Recano & Company, Inc. is the claims and
noticing agent.
AUTO MONEY: Gets OK to Hire Waldrep as Bankruptcy Counsel
---------------------------------------------------------
Auto Money North, LLC received approval from the U.S. Bankruptcy
Court for the District of South Carolina to hire Waldrep Wall
Babcock & Bailey PLLC as its bankruptcy counsel.
The firm's services include:
a. advising the Debtor of its rights, powers and duties;
b. advising the Debtor regarding all general bankruptcy
matters;
c. preparing legal papers;
d. assisting other professionals retained by the Debtor in
the investigation of the acts, conduct, assets, liabilities and
financial condition of the Debtor, and any other matters relevant
to the Debtor's Chapter 11 case or to the formulation of a plan of
reorganization or liquidation;
e. representing the Debtor at court hearings;
f. prosecuting and defending any litigated matters that may
arise during the bankruptcy case;
g. investigating the validity, extent and priority of any
secured claims against the Debtor's bankruptcy estate, and
investigating the acts and conduct of such secured creditors and
other parties to determine whether any causes of action may exist;
h. negotiating, preparing and implementing a plan of
reorganization;
i. representing the Debtor on matters relating to the
assumption or rejection of executory contracts and unexpired
leases; and
j. other necessary legal services.
The firm will charge these hourly fees:
Thomas W. Waldrep Attorney/Partner $590
Kevin L. Sink Attorney/Partner $510
James Lanik Attorney/Partner $490
Kelly Cameron Attorney/Partner $480
Jennifer Lyday Attorney/Partner $430
Ciara L. Rogers Attorney/Partner $370
Diana Santos Johnson Attorney/Associate $350
John Van Swearingen Attorney/Associate $325
Natalia Talbot Attorney/Associate $325
Katharine Hayden Paralegal $210
Marybeth Ford Paralegal $210
Mindy Fischer Paralegal $210
Waldrep is disinterested as that term is defined in Section 101(14)
of the Bankruptcy Code, according to court papers filed by the
firm.
The firm can be reached through:
Thomas W. Waldrep, Jr., Esq.
Waldrep Wall Babcock & Bailey PLLC
370 Knollwood Street, Suite 600
Winston-Salem, NC 27103
Phone: (336) 717-1280
Email: twaldrep@waldrepwall.com
About Auto Money North
Auto Money North, LLC, doing business as Auto Money Title Loans
North, provides title loans and title pawns to residents of South
Carolina and Georgia. The company is based in Fort Mill, S.C.
Auto Money North filed a petition for relief under Subchapter V of
Chapter 11 of the Bankruptcy Code (Bankr. D.S.C. Case No. 22-03309)
on Dec. 2, 2022. In the petition filed by its manager, Mark Allen,
the Debtor reported assets between $500,000 and $1 million and
liabilities between $1 million and $10 million.
Judge Helen E. Burris oversees the case.
Thomas W. Waldrep, Jr., Esq., at Waldrep Wall Babcock & Bailey,
PLLC and Stanley H. McGuffin, Esq., at Haynsworth Sinkler Boyd,
P.A. are the Debtor's bankruptcy counsel and local counsel,
respectively. Donlin, Recano & Company, Inc. is the claims and
noticing agent.
AUTO MONEY: Gets OK to Tap Haynsworth Sinkler Boyd as Local Counsel
-------------------------------------------------------------------
Auto Money North, LLC received approval from the U.S. Bankruptcy
Court for the District of South Carolina to hire Haynsworth Sinkler
Boyd, P.A. as its local counsel.
The firm's services include:
a. advising the Debtor regarding the preparation of its
bankruptcy schedules;
b. advising the Debtor on strategy regarding issues and
matters relevant to its Chapter 11 case;
c. sponsoring Waldrep Wall Babcock & Bailey PLLC's pro hac
vice admission applications; and
d. other services necessary to the prosecution of the
bankruptcy case.
The hourly rates charged by the firm's attorneys and paralegals are
as follows:
Stanley H. McGuffin, Attorney/Partner $385
Mary Caskey, Attorney/Partner $385
Carol A. Williamson, Paralegal $155
The firm received a retainer totaling $100,000.
As disclosed in court filings, Haynsworth is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Stanley H. McGuffin, Esq.
Haynsworth Sinkler Boyd, P.A.
P.O. Box 11889
Columbia, SC 29211
Phone: (803) 779-3080 / (803) 540-78386
Fax: (803) 765-1243
Email: smcguffin@hsblawfirm.com
About Auto Money North
Auto Money North, LLC, doing business as Auto Money Title Loans
North, provides title loans and title pawns to residents of South
Carolina and Georgia. The company is based in Fort Mill, S.C.
Auto Money North filed a petition for relief under Subchapter V of
Chapter 11 of the Bankruptcy Code (Bankr. D.S.C. Case No. 22-03309)
on Dec. 2, 2022. In the petition filed by its manager, Mark Allen,
the Debtor reported assets between $500,000 and $1 million and
liabilities between $1 million and $10 million.
Judge Helen E. Burris oversees the case.
Thomas W. Waldrep, Jr., Esq., at Waldrep Wall Babcock & Bailey,
PLLC and Stanley H. McGuffin, Esq., at Haynsworth Sinkler Boyd,
P.A. are the Debtor's bankruptcy counsel and local counsel,
respectively. Donlin, Recano & Company, Inc. is the claims and
noticing agent.
AVAYA HOLDINGS: Board Appoints Jill Frizzley as Director
--------------------------------------------------------
The Board of Directors of Avaya Holdings Corp. appointed Jill K.
Frizzley to serve on the Board, effective as of Dec. 13, 2022,
according to a Form 8-K filed with the Securities and Exchange
Commission. She will serve as a director until her successor has
been elected and qualified, subject to her earlier death,
resignation, retirement, disqualification or removal.
Ms. Frizzley was appointed to the Board following her nomination by
RingCentral, Inc. Pursuant to the Investor Rights Agreement
between the Company and RingCentral dated Oct. 31, 2019,
RingCentral is entitled to nominate one person for appointment to
the Company's Board for so long as they continue to beneficially
own a minimum number of shares of the Company's common stock
(including shares issued upon conversion of the Company's Series A
Convertible Preferred Stock held by Ring Central.) In addition, as
contemplated in the Investor Rights Agreement, Ms. Frizzley will
serve as a non-voting observer on the Board's Audit Committee,
Compensation Committee and Nominating and Corporate Governance
Committee.
Ms. Frizzley, who is 47 years old, is the president of Wildrose
Partners, LLC, an independent consultant company providing
governance and related advisory services to corporations, a
position she has held since June 2019. From 2016 through May 2019,
Ms. Frizzley served as counsel in the Business Finance and
Restructuring Group at the law firm of Weil, Gotshal & Manges LLP.
Ms. Frizzley currently serves as an independent director on the
board of directors of several companies, including Envision
Healthcare Corporation, Voyager Digital, LLC, Independent Pet
Partners and K&N Engineering.
Avaya said there are no family relationships between Ms. Frizzley
and any director or executive officer of the Company, nor are there
any transactions between Ms. Frizzley or any member of her
immediate family and the Company that would be reportable as a
related party transaction under the rules of the Securities and
Exchange Commission.
Ms. Frizzley will be eligible to receive the cash and non-cash
non-employee director compensation described in the Compensation
Discussion & Analysis in the Company's proxy statement on Schedule
14A filed with the SEC on Jan. 18, 2022. In addition to that
compensation, RingCentral will supplement the annual cash retainer
and non-cash compensation which Ms. Frizzley will receive from the
Company so that she will receive an aggregate of $30,000 per month
for her service on the Board.
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.
BETTER NUTRITIONALS: Case Summary & 20 Top Unsecured Creditors
--------------------------------------------------------------
Debtor: Better Nutritionals, LLC
3390 Horseless Carriage Drive
Norco, CA 92860
Business Description: The Debtor is a contract manufacturer and
R&D leader in nutritional supplements.
Chapter 11 Petition Date: December 20, 2022
Court: United States Bankruptcy Court
Central District of California
Case No.: 22-14723
Judge: Hon. Magdalena Reyes Bordeaux
Debtor's Counsel: John N. Tedford, IV, Esq.
DANNING, GILL, ISRAEL & KRASNOFF, LLP
1901 Avenue of the Stars, Suite 450
Los Angeles, CA 90067-6006
Tel: (310) 277-0077
Email: jtedford@danninggill.com
Estimated Assets: $50 million to $100 million
Estimated Liabilities: $100 million to $500 million
The petition was signed by Sharon Hoffman as manager.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/DD55PCY/Better_Nutritionals_LLC__cacbke-22-14723__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Capital One Trade Debt $6,617,428
PO Box 30285
Salt Lake City, UT
84130-0285
Tel: 800-867-0904
2. Caliber Construction Inc. Services $6,030,025
240 North Orange Ave
Brea, CA 92821
Anna M. Carno, Esq.
Tel: 949-540-0320
Email: acarno@carnolaw.com
3. Shri Kartikeya Pharma Trade Debt $4,217,108
H No 5536/15/A Opp NCS
Complex Prashanti
Nagar IDA
Kukatpally
Hyderabad 500072
Telengana India
Tara L. Blake, Esq.
Tel: 212-222-2101
Email: tara.blake@butlersnow.com
4. LS Link Co Ltd. Trade Debt $3,127,713
Unit 208A 25/F
Bnk of America Twr
12 Harcourt Road
Central Hong Kong
Tel: 852-3921-6080
5. Amtech Ingredients Trade Debt $2,279,458
517 Adams Avenue
Albert Lea, MN
56007
Tel: 715-381-5746
6. AGPE Corp $2,261,282
21715 The Trails Circle
Murrieta, CA 92562
Tel: 562-426-9787
7. Saddle Ranch APG LLC Trade Debt $2,156,240
PO Box 51930
Los Angeles, CA 90051
Tel: 714-990-2100
8. BRS Beyond Trade Debt $1,709,426
Resource Solutions, Inc.
1475 South State
College Blvd.
Suite 116
Anaheim, CA 92806
Clayton J. Hix, Esq.
Tel: 213-620-0460
Email: chix@hillfarrer.com
9. SouthWest ToyotaLift Trade Debt $1,196,661
PO Box 1070
3725 Nobel Ct
Mira Loma, CA 91752
Tel: 951-727-0477
10. J. Rettenmaier USA LP Trade Debt $1,059,137
16369 US 131 Highway
Schoolcraft, MI 49087
Richard O Cherry, Esq.
Tel: 269-226-2987
Email: cherryr@millerjohnson.com
11. Mold Rite Plastics Trade Debt $1,010,691
PO Box 160
100 North Field Drive
Lake Forest, IL 60045
Tel: 518-324-4874
12. Capitol Food Company Trade Debt $996,446
12836 Alondra Blvd
Cerritos, CA 90703
Email: info@capitolfoodco.com
13. Gadot America Inc. Trade Debt $993,760
One International Blvd
Suite 407
Manwah, NJ 07495
Tel: 714-612-1656
14. Allied Universal Trade Debt $936,262
Sercurity Services
1551 N. Tustin Avenue
Suite 560
Santa Ana, CA 92705
Tel: 866-877-1965
15. Stratum HR LLC Trade Debt $849,210
23052 Alicia Parkway
Suite H533
Mission Viejo, CA 92692
Tel: 858-298-1968
16. Citistaff Solutions, Inc. Trade Debt $794,274
Attn: Legal Dept/Slater & Assoc
1111 W. Town & Country Rd
Suite 30
Orange, CA 92868
Charles S. Slater, Esq.
Tel: 657-333-8090
Email: cslater@citistaffsolutions.com
17. Tay Ninh Tapioca Joint Trade Debt $697,043
Stock Company
Tan Binh Hamlet
Tay Ninh Province
Vietnam
Tel: (84) 276-3821545
18. Southern California Utilities $697,043
Edison
PO Box 300
Rosemead, CA
91772
Tel: 800-655-4555
19. Servicon Systems, Inc. Trade Debt $665,696
3965 Landmark Street
Culver City, CA 90232
Nick Iezza, Esq.
Tel: 805-777-1175
Email: niezza@sai-legal.com
20. Custom Ingredients Inc. Trade Debt $614,138
160 Calle Iglesia
San Clemente, CA 92672
Robert J. Danko, Esq.
Tel: 951-303-1200
Email: rjdanko@verizon.net
BULLSTRAP LLC: Wins Cash Collateral Access on Final Basis
---------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Florida,
West Palm Beach Division, authorized Bullstrap, LLC to use cash
collateral on a final basis in accordance with the budget and
provide adequate protection.
The Debtor requires the use of cash collateral to maintain its
assets and pay payroll, payroll taxes, inventory suppliers and
their vendors, overhead, costs to administer the Debtor's estate,
and other expenses necessary to maximize the value of the Debtor's
assets.
As previously reported by the Troubled Company Reporter, the
Debtor's primary indebtedness is an Economic Injury Disaster Loan
from the U.S. Small Business Administration. As of August 26, 2022,
the outstanding principal balance due under the Loan was
$1,199,400. The Loan is evidenced by an original note dated May 21,
2020, and security agreement, a First Modification of the Note
dated July 16, 2021, and a Second Modified of Note and Amended
Security Agreement encumbering substantially all of the Debtor's
assets. The Note matured on May 21, 2022.
eCommerce Funding, LLC also asserts an interest in the Debtor's
cash collateral.
Although the extent, validity and priority of the secured positions
of the SBA and eCommerce are not adjudicated by way of the Interim
Order, in addition to existing rights and interests of the SBA and
eCommerce, they are granted valid, automatically perfected and
enforceable security interests and liens equivalent to liens
granted under Bankruptcy Code Sections 361, 363 and 364(c) in and
upon (i) the Collateral; (ii) all property acquired by the Debtor
after the Petition Date that is of the same nature, kind, type, or
character as the Collateral in which the Lenders had an interest
prior to the commencement of the Case (but excluding claims or
causes of action of the Debtor or the estate available through the
exercise of the powers granted pursuant to Sections 542, 544, 547,
548, 549, 550, 551 and 553); and (iii) all cash and receivables
that are proceeds, products, offspring, or profits of the
collateral.
The Replacement Liens granted will:
(i) be in addition to all security interests, liens and rights
of set-off existing in favor of the SBA and eCommerce;
(ii) be valid, perfected, enforceable and effective as of the
date of the entry of the Interim Order without any further action
by the Debtor, SBA, or eCommerce and without the necessity of the
execution, filing or recordation of any financing statements,
security agreements, mortgages or other documents; and
(iii) secure the payment of the indebtedness to the SBA, as the
case may be, in an amount equal to any diminution in the value of
the cash collateral or any other Collateral occurring from and
after the Petition Date.
The Debtor will maintain, with financially sound and reputable
insurance companies, insurance of the kind covering the Collateral,
and in accordance with and in compliance with the U.S. Trustee
Guidelines and naming the SBA and eCommerce loss payee as it may
request and as its interest may appear.
A copy of the order is available at https://bit.ly/3hHtTXJ from
PacerMonitor.com.
About Bullstrap, LLC
Bullstrap, LLC is a retailer of leather goods, including backpacks,
cellular telephone cases, smart watch wristbands, and other
lifestyle products. Bullstrap has substantial online presence.
Bullstrap sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. S.D. Fla. Case No. 22-16627) on August 26, 2022. In
the petition signed by Claudio Conte, managing member, the Debtor
disclosed up to $500,000 in assets and up to $10 million in
liabilities.
Judge Erik P. Kimball oversees the case.
Chad P. Pugatch, Esq., at Loriun Law, is the Debtor's counsel.
CARVANA CO.: Faces Possible Bankruptcy Due to Cash Deficit
----------------------------------------------------------
Chris Isidore of CNN Business reports that used car retailer
Carvana, facing a cash crunch, could be headed towards bankruptcy,
according to both published reports and a bearish analyst's call
that slashes its share-price target to $1.
Used car prices have been falling from record highs in recent
months as higher interest rates have made used cars unaffordable
for many potential buyers. Carvana, a relatively new player in the
used car field, has lost money most quarters since it went public
in 2017 as it aimed for sales growth a rather than short-term
profitability.
But its losses have widened amid the recent downturn in the
sector.
It reported a net loss of $1.5 billion in the first nine months of
this 2022, up from a $105 million net loss in the same period of
2021.
And its cash on hand was $316 million as of September 30, 2022 down
22% from the start of the year, although its borrowing capacity has
increased. It announced it was cutting 1,500 jobs last month on
slower car sales.
Bloomberg reported Tuesday that major holders of Carvana debt have
entered into a cooperation agreement to work together and give them
more leverage in any negotiations with the company. And it reported
Wednesday the company is in talks with lawyers and investment
bankers about options for managing its debt load amid concerns
about its solvency.
Seth Basham, an analyst with Wedbush Securities, slashed his price
target on the stock to $1 from $9 in a note Wednesday, saying that
the fact that its debt is trading at less than 50 cents on the
dollar is a sign that there is a "higher likelihood of debt
restructuring that could leave the equity worthless in a bankruptcy
scenario... or highly diluted in a best case."
Carvana launched 10 years ago with a plan to disrupt the used car
market, offering both online car shopping and trade-ins as well as
distinctive car vending machines. But Basham told CNN Carvana's
problems are worse than other used car dealers because it expanded
faster than its sales could support.
"They put the cart before the horse," he said. "They built
infrastructure for a lot more sales than they're currently doing.
And that saddled them with a ton of excess capacity."
The company did comment directly on the report about meetings with
lawyer and bankers, only saying that it is not a party to the
cooperation agreement among bondholders.
"Our message to our customers, shareholders, employees and other
stakeholders remains clear: we are singularly focused on executing
on the plan to profitability outlined in our third quarter
shareholder letter and we have substantial liquidity to get us
there," said the company's statement. "In no way do these reports
change that strategy."
But the reports only fed a sell-off in shares already underway.
Shares had been down 97% so far this year at the close of trading
this past Friday. They plunged to an all-time low of $3.55 a share
Wednesday, before closing at $3.83 a share, down 43% for the day.
About Carvana Co.
Founded in 2012 and based in Tempe, Arizona, Carvana Co. --
http://www.carvana.com/-- is an e-commerce platform for buying and
selling used cars.
CELSIUS NETWORK: KeyFi and Stone's Bid for Dismissal Denied
-----------------------------------------------------------
In the adversary proceeding styled as In re: Celsius Network LLC,
et al., Chapter 11, Debtors. Celsius Network Limited and Celsius
KeyFi LLC, Plaintiffs, v. Jason Stone and KeyFi Inc, Defendants,
Case No. 22-10964 (MG), Adv. Proc. No. 22-01139 (MG), (Bankr.
S.D.N.Y.), Chief Bankruptcy Judge Martin Glenn for the Southern
District of New York denies the motion to dismiss filed by the
Defendants KeyFi Inc. and Jason Stone.
The Defendants move to dismiss the First Amended Complaint filed by
Celsius Network Limited and Celsius KeyFi LLC in this adversary
proceeding. In their First Amended Complaint in this adversary
proceeding, the Plaintiffs are seeking the return of certain assets
from the Defendants that the Plaintiffs claim belong to them.
In or around late 2019 and early 2020, Celsius began to consider
additional revenue-generating investment strategies and became
interested in "staking" and "DeFi" activities. Staking refers to
providing cryptocurrency coins to a third-party platform for the
purpose of earning revenue, usually in the form of a coin. DeFi
generally refers to certain activities on a blockchain designed to
provide financial services like borrowing, lending and
market-making without an institutional intermediary, often
utilizing so-called "smart contracts."
By way of background, Alex Mashinsky and Nuke Goldstein, two of the
founders of Celsius, were introduced to Jason Stone in early 2019.
At the time, Stone had a company called Battlestar Capital that
focused on coin staking in which Mashinsky was an investor. Later,
certain Battlestar assets were transferred to KeyFi, with
Battlestar investors, including Mashinsky, receiving KeyFi equity
in exchange. Around that time, Celsius and Goldstein each made an
equity investment in KeyFi. Through KeyFi, Stone claimed to have
expanded his focus to encompass DeFi as well as staking activities.
When Celsius began to explore deploying Celsius' coins in staking
and DeFi strategies in 2020, based on Stone's representations and
the diligence undertaken by Mashinsky and Goldstein, Celsius
believed Stone's claims that the Defendants were qualified to lead
the effort. By August 2020, Celsius and Stone agreed in principle
that Celsius would set up a wholly owned subsidiary to acquire the
assets of KeyFi and operate Celsius' staking and DeFi activities,
with Stone as CEO of that subsidiary.
In their motion to dismiss, the Defendants argue that the
Plaintiffs fail to make specific, particular allegations regarding
the fraudulent misstatements in question. Given the evolution of
the Parties' relationship, the Court finds that the Plaintiffs make
allegations showing that statements which may have been promissory
at a certain point in time were also made at later points as
statements of present fact -- alleging that "the Defendants agreed
to build a so-called 'wormhole' program" and "throughout the fall
of 2020, Stone promised that his team was designing and would soon
deliver the 'wormhole' program." This was all during the timeline
that the Plaintiffs alleged they were being induced to provide
coins to Defendants, and such present statements of fact may create
a cause of action for fraud even where there are related future
promises made between the parties.
As the Plaintiffs point out, the Defendants do not engage with the
Plaintiffs' allegations about specific representations made by
Stone regarding the Defendants' conduct with respect to hedging,
profitability, visibility, and return of coins. Some of these
allegations contain specific dates and quotes, and in any event,
they provide sufficiently detailed information and a time period to
"apprise a defendant of the general time period of any alleged
misstatements to meet the requirements of Rule 9(b)."
The Court finds the Defendants' factual arguments regarding
Celsius' continued control over its own wallets and prior
relationship with Stone seem entirely inapposite (or possibly even
supportive to the Plaintiffs) to the issue of whether the
Plaintiffs were justified in relying on Stone's representations
regarding hedging and visibility measures. The Court concludes that
the Plaintiffs have sufficiently stated a claim for fraudulent
misrepresentation.
The Court holds that to the extent that Celsius has adequately
stated claims for justifiable reliance on misrepresentations
earlier in the relationship, the point at which reliance became
unjustifiable or the fraud itself was discovered, and the extent of
related damages incurred in either event are factual issues not
proper to resolve on a motion to dismiss.
The Defendants make two arguments, both of which effectively posit
that the existence of contracts between the parties precludes the
unjust enrichment claim. First, the Defendants argue, much like
they do for the conversion claim (and to a lesser extent, the
turnover claim), that the existence of the contracts here between
the parties precludes the Plaintiffs' unjust enrichment claim.
Second, the Defendants argue that the Plaintiffs fail to allege
they lack an adequate remedy at law, for much the same reason --
because the claims are actually for breach of contract.
The Court determines that the Plaintiffs have the better argument
that the unjust enrichment claim is not duplicative of a breach of
contract claim -- the Plaintiffs accurately recognize "that the
issue is neither resolved by asking whether the plaintiff brought a
breach of contract action or whether there was an enforceable
contract between the parties. Indeed, the narrower issue is
whether, when an enforceable contract exists, but no breach of
contract claim is brought, the contract still covers the conduct
complained of." Thus, just as with the conversion claim, the Court
finds that the Plaintiffs' arguments regarding the factual
inapplicability of the contract to the conduct complained are
successful. For those reasons, the Court concludes that the
Plaintiffs have sufficiently stated a claim for unjust enrichment.
The Defendants acknowledge that their arguments for the replevin
claim are a straightforward repackaging of their other arguments
that: (1) allegations are insufficient in claiming that KeyFi has
possession of property at issue (as for the turnover and conversion
claims); and (2) allegations for both Defendants are insufficient
as they seek to enforce a contractual duty (as for the turnover,
conversion, and unjust enrichment claims).
The Court finds both arguments lack merit. With specific focus on
the replevin caselaw, the Court concludes that the Plaintiffs
correctly distinguish both of the Defendants' replevin cases as
involving scenarios where the plaintiffs had also brought contract
claims, making the contractual applicability undeniable, at least
in the alternative. For those reasons, the Plaintiffs have
sufficiently stated a claim for replevin.
Finally, the Plaintiffs argue that they have established a claim
for accounting because (1) Stone owed fiduciary duties to Celsius,
based on his role as CEO and chief fiduciary of Celsius KeyFi; (2)
Stone was entrusted with Celsius' coins to be managed, deployed and
returned; (3) the Plaintiffs have no other remedy at law due to the
unique nature of the assets managed and purchased by Stone, the
complexity of the trading strategies Stone employed, and Stone's
use of cryptocurrency mixers like Tornado Cash; and (4) the
Defendants failed and refused to provide an accounting, despite
repeated demands by Celsius.
The Defendants do not attack the pleading of the elements but argue
that the accounting claim must be dismissed because it is actually
not a claim at all, and is a remedy instead. The Defendants' only
basis for dismissal is arguing that accounting is not a claim under
New York law. The Court finds this argument not meritorious as the
Defendants do not adequately support that argument. On the other
hand, the Court finds that the Plaintiffs have sufficiently stated
a claim for accounting under New York law.
A full-text copy of the Memorandum Opinion and Order dated Dec. 8,
2022, is available at https://tinyurl.com/3t9cbvbw from
Leagle.com.
About Celsius Network
Celsius Network LLC -- http://www.celsius.network/-- is a
financial services company that generates revenue through
cryptocurrency trading, lending, and borrowing, as well as by
engaging in proprietary trading.
Celsius helps over a million customers worldwide to find the path
towards financial independence through a compounding yield service
and instant low-cost loans accessible via a web and mobile app.
Celsius has a blockchain-based fee-free platform where membership
provides access to curated financial services that are not
available through traditional financial institutions.
The Celsius Wallet claims to be one of the only online crypto
wallets designed to allow members to use coins as collateral to get
a loan in dollars, and in the future, to lend their crypto to earn
interest on deposited coins (when they're lent out).
Crypto lenders such as Celsius boomed during the COVID-19 pandemic,
drawing depositors with high interest rates and easy access to
loans rarely offered by traditional banks. But the lenders'
business model came under scrutiny after a sharp sell-off in the
crypto market spurred by the collapse of major tokens terraUSD and
luna in May 2022.
New Jersey-based Celsius froze withdrawals in June 2022, citing
"extreme" market conditions, cutting off access to savings for
individual investors and sending tremors through the crypto
market.
The list of major crypto firms that have filed for bankruptcy
protection in 2022 now includes Celsius Network, Three Arrows
Capital and Voyager Digital.
Celsius Network, LLC and its subsidiaries sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case
No.22-10964) on July 14, 2022. In the petition filed by CEO Alex
Mashinsky, the 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.
CENTURY ALUMINUM: Givolon, Three Others Cease to be Shareholders
----------------------------------------------------------------
In an amended Schedule 13D filed with the Securities and Exchange
Commission, these entities and individuals reported they have
ceased to beneficially own shares of common stock of Century
Aluminum Company as of Dec. 15, 2022:
* Givolon Limited
* Ryfold Limited
* Ocorian Limited in its capacity as trustee of The Ryfold Trust
* Ocorian Limited
A full-text copy of the regulatory filing is available for free
at:
https://www.sec.gov/Archives/edgar/data/949157/000110465922127446/tm2232820d4_sc13da.htm
About Century Aluminum Company
Century Aluminum Company -- http://www.centuryaluminum.com-- owns
primary aluminum capacity in the United States and Iceland.
Century Aluminum reported a net loss of $167.1 million for the year
ended Dec. 31, 2021, a net loss of $123.3 million for the year
ended Dec. 31, 2020, a net loss of $80.8 million for the year ended
Dec. 31, 2019, and a net loss of $66.2 million for the year ended
Dec. 31, 2018. As of Sept. 30, 2022, the Company had $1.58 billion
in total assets, $406.1 million in total current liabilities,
$660.9 million in total noncurrent liabilities, and $516.6 million
in total shareholders' equity.
CENTURY ALUMINUM: Glencore Has 42.9% Stake as of Dec. 15
--------------------------------------------------------
In an amended Schedule 13D filed with the Securities and Exchange
Commission, these entities reported beneficial ownership of shares
of common stock of Century Aluminum Company as of Dec. 15, 2022:
Shares Percent
Beneficially of
Reporting Person Owned Class
Glencore International AG 39,201,321 42.9%
Glencore plc 39,201,321 42.9%
Glencore AG 11,701,321 12.8%
The beneficial ownership percentages are based upon 91,347,229
shares of Common Stock outstanding as of Nov. 4, 2022, based on the
Company's Quarterly Report on Form 10-Q filed with the SEC on
Nov. 7, 2022.
Of the shares of Common Stock beneficially owned by the Reporting
Persons, 11,701,321 shares are held directly by Glencore AG and
27,500,000 shares are held directly by Glencore International. The
shares reported as beneficially owned by the Reporting Persons do
not include the 5,804,626 shares of Common Stock issuable upon
conversion of the 58,046.26 Series A Preferred Shares held directly
by Glencore AG that are convertible (A) upon the occurrence of
events that have not transpired, or (B) in circumstances that would
not result in an increase in the percentage of shares of Common
Stock beneficially owned by the Reporting Persons.
A full-text copy of the regulatory is available for free at:
https://www.sec.gov/Archives/edgar/data/949157/000110465922127445/tm2232820d3_sc13da.htm
About Century Aluminum Company
Century Aluminum Company -- http://www.centuryaluminum.com-- owns
primary aluminum capacity in the United States and Iceland.
Century Aluminum reported a net loss of $167.1 million for the year
ended Dec. 31, 2021, a net loss of $123.3 million for the year
ended Dec. 31, 2020, a net loss of $80.8 million for the year ended
Dec. 31, 2019, and a net loss of $66.2 million for the year ended
Dec. 31, 2018. As of Sept. 30, 2022, the Company had $1.58 billion
in total assets, $406.1 million in total current liabilities,
$660.9 million in total noncurrent liabilities, and $516.6 million
in total shareholders' equity.
CHICK LUMBER: Gets Court Nod to Use Cash Collateral Thru March 31
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the District of New Hampshire
authorized Chick Lumber, Inc. to use cash collateral on an interim
basis in accordance with the budget through March 31, 2023.
The Debtor may use and expend cash collateral to pay the costs and
expenses incurred by the Debtor in the ordinary course of business
to the extent provided for in the Budget up to $1,690,577 during
the period between January 1, 2023 and March 31, 2023.
The Debtor will make these Adequate Protection Payments on the last
day of each month: (i) $481.70 to Jeldwen, Inc.; (ii) $24.66 to BFG
Corporation (H2H NC Paint Tinter); (iii) $37.83 to GreatAmerica
Financial Services Corp.; (iv) $0.00 to Citizens One Auto Finance;
(v) $226.60 to Citizens One Auto Finance; (vi) $211.94 to Citizens
One Auto Finance; (vii) $39.52 to Wells Fargo Equipment Finance,
Inc. - Forklift; $63.25 to Wells Fargo Equipment Finance, Inc.
Moffett Machine; (ix) $82.22 to Hitachi Capital Financial; and (x)
$1,197.93 to Citizens Financial Group, Inc., as the assignee of the
claim of American Express Bank, FSB.
If any payment due will not be timely made, the creditor entitled
to the payment will have the right to move the Court for an order
terminating the use of Cash Collateral by filing an affidavit of
default with the Court certifying (a) the amount of the payment
due, (b) the date such payment was due, and (c) the Debtor's
failure to make such payment, with service on the Debtor's counsel
and the United States Trustee.
Each Record Lienholder (including RBS Citizens on its own behalf
and as assignee of Amex FSB) is granted a replacement lien in, to
and on the Debtor's post-petition property of the same kinds and
types as the collateral in, to and on which it held or claims to
have held valid and enforceable, perfected liens on the Petition
Date as security for any loss or diminution in the value of the
collateral held by any such Record Lienholder on the Petition Date
which will have and enjoy the same priority as it had on the
Petition Date under applicable state law.
The replacement liens will be deemed valid and perfected
notwithstanding any requirements of non-bankruptcy law with respect
to perfection.
A further hearing on the matter is scheduled for March 15 at 11
a.m.
A copy of the order and the Debtor's budget is available at
https://bit.ly/3hKEUHK from PacerMonitor.com.
The Debtor projects $1,662,000 in total cash in and $1,690,576 in
total cash out.
About Chick Lumber
Chick Lumber, Inc. -- https://www.chicklumber.com/ -- is a dealer
of lumber, plywood, steel beams, engineered wood, trusses, steel
and asphalt roofing, windows, doors, siding, trim, stair parts, and
finish materials. It also offers drafting and design, installation,
delivery, outside sales, and plan reading and estimating services.
The Debtor sought Chapter 11 protection (Bankr. D.N.H. Case No.
19-11252) on Sept. 9, 2019, in Concord. In the petition signed by
Salvatore Massa, president, the Debtor disclosed between $1 million
and $10 million in both assets and liabilities.
Judge Bruce A. Harwood oversees the case.
William S. Gannon PLLC is the Debtor's legal counsel.
The Office of the U.S. Trustee appointed a committee of unsecured
creditors on Oct. 3, 2019. The Committee is represented by
Goldstein & McClintock, LLLP as its legal counsel.
CLAIRMONT PLACE: No Decline in Resident Care, 6th PCO Report Says
-----------------------------------------------------------------
Melanie McNeil, Esq., the court-appointed patient care ombudsman,
filed with the U.S. Bankruptcy Court for the Northern District of
Georgia a sixth report regarding the quality of patient care
provided at The Montclair, a personal care home in Decatur being
operated by Clairmont Place Condominium Association, Inc.
The PCO is not aware of any significant change in facility
conditions or decline in resident care for this personal care home
since her appointment, according to the report, which the PCO filed
following a visit on Nov. 30.
During the visit, the ombudsman representative did not receive any
complaints. The residents and family members with whom the
ombudsman representative visited expressed satisfaction with the
facility, staff and care.
The ombudsman representative observed the following during the
visit: (i) adequate food and supplies; and (ii) good sanitation at
the common areas, according to the report.
A copy of the sixth ombudsman report is available for free at
https://bit.ly/3hwUreb from PacerMonitor.com.
The ombudsman may be reached at:
Melanie S. McNeil, Esq.
Office of the State Long-Term Care Ombudsman
2 Peachtree Street NW, 33rd Floor
Atlanta, GA 30303
Phone: (404) 657-5327/(404) 416-0211
Fax: (404) 463-8384
Email: Melanie.McNeil@osltco.ga.gov
About Clairmont Place Condominium Association
Clairmont Place Condominium Association, Inc. sought protection
under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ga. Case No.
21-58123) on Oct. 29, 2021, with up to $1 million in assets and up
to $10 million in liabilities. Judge Lisa Ritchey Craig oversees
the case.
Shayna Steinfeld, Esq., at Steinfeld & Steinfeld, PC is the
Debtor's legal counsel.
Melanie S. McNeil, Esq., from the Office of the State Long-Term
Care Ombudsman, has been appointed as patient care ombudsman.
CLEAN ENERGY: Unit Signs Deal to Develop Pyrolysis Plant
--------------------------------------------------------
CETY Capital, LLC, a wholly owned subsidiary of Clean Energy
Technologies, Inc., has entered into an Operating Agreement with
Synergy Bioproducts Corporation to establish Vermont Renewable Gas,
LLC to develop a pyrolysis plant.
As disclosed in a Form 8-K filed with the Securities and Exchange
Commission, the plant is expected to convert approximately 10,000
tons/year of woody biomass feedstock into approximately 16,500 MWh
electricity/year, 1,400 MT/year of biochar and 26,000 MM BTU/year
of thermal energy by using high temperature ablative fast pyrolysis
reactor. Clean Energy Technologies holds an exclusive right to
exploit the technology. Clean Energy Technologies will provide
services and products critical for the development of the project.
CETY Capital holds a 49 percent interest in Vermont Renewable Gas
and has various rights to protect its interests as a minority
member. In addition, Clean Energy Technologies will hold positions
on the Board of Managers. The Agreement provides other provisions
commonly found in operating agreements of this nature.
About Clean Energy
Headquartered in Costa Mesa, California, Clean Energy Technologies,
Inc. -- http://www.cetyinc.com-- designs, produces and markets
clean energy products and integrated solutions focused on energy
efficiency and renewables.
Spokane, Washington-based Fruci & Associates II, PLLC, the
Company's auditor since 2015, issued a "going concern"
qualification in its report dated April 15, 2022, citing that the
Company has an accumulated deficit, net losses, and working capital
deficit from operations. These factors raise substantial doubt
about the Company's ability to continue as a going concern.
COASTAL DRILLING: Court OKs Cash Collateral Access Thru Dec 31
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas,
Corpus Christi Division, authorized Coastal Drilling Land Company,
L.L.C. to continue using cash collateral on an interim basis in
accordance with the budget, through December 31, 2022.
The Court held that all other terms, conditions, rights, and
obligations set forth in the Third Interim Cash Collateral Order
will remain unchanged and unimpaired.
As previously reported by the Troubled Company Reporter, the Debtor
was a party to a Loan Agreement and a Security Agreement both dated
August 19, 2015, by and between the Debtor and First Horizon,
pursuant to which First Horizon made certain loans, advances, and
other financial accommodations to the Debtor to fund, among other
things, the Debtor's operations. The advances from First Horizon
were represented by a Term Note in the original principal amount of
$5.75 million and a Revolving Credit Note in the original principal
amount of $2 million. First Horizon alleges that (i) pursuant to
the Loan Documents, the aggregate amount of not less than
approximately $2.28 million was due and owing by the Debtor to
First Horizon on the First Horizon Term Note as of the Petition
Date.
John Powers alleges he is the subrogee of First Horizon with
respect to the First Horizon Revolving Credit Note. Powers alleges
that:
(i) pursuant to the First Horizon Loan Documents, the
aggregate amount of not less than $2 million is due and owing by
the Debtor to him as subrogee of First Horizon on the First Horizon
Revolving Credit Note as of the Petition Date;
(ii) the First Horizon Revolving Credit Note constitutes the
Debtor's legal, valid and binding obligation, enforceable in
accordance with the terms of the First Horizon Loan Documents; and
(iii) the First Horizon Revolving Credit Note is secured by
valid, binding, perfected and enforceable liens and security
interests granted by the Debtor to and for the benefit of First
Horizon and now to him as subrogee pursuant to the First Horizon
Loan Documents and further set forth in the recorded UCC Financing
Statement of First Horizon, upon and in the property of the Debtor
as described in the recorded First Horizon Loan Documents whether
then owned or thereafter acquired or arising.
As adequate protection, each Secured Lender was granted Replacement
Liens, Superpriority Claims, and any applicable adequate protection
payments.
To the extent of any Diminution in Value, each Secured Lender was
granted valid, automatically perfected and enforceable additional
adequate protection replacement liens, in accordance with the
priority of the applicable Secured Lender and subject to the
Carve-Out and only in collateral of the same type as such Secured
Lender has a valid prepetition lien.
A copy of the order and the Debtor's budget is available at
https://bit.ly/3hA2GGE from PacerMonitor.com.
The Debtor projects $145,000 in cash collections and $185,387 in
total operating expenses for the week ending December 30, 2022.
About Coastal Drilling Land Company, L.L.C.
Coastal Drilling Land Company, L.L.C. offers drilling rigs and
services to the South Texas and Gulf Coast regions.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Case No. 22-20204) on August 28,
2022. In the petition signed by CEO Chris McClanahan, the Debtor
disclosed up to $50 million in both assets and liabilities.
Judge David R. Jones oversees the case.
Matthew Okin, Esq., at Okin Adams Bartlett Curry LLP is the
Debtor's counsel.
COASTAL LANDFILL: Taps Shelly May Johnson as Special Counsel
------------------------------------------------------------
Coastal Landfill Disposal of Florida, LLC seeks approval from the
U.S. Bankruptcy Court for the Northern District of Georgia to
employ Shelly May Johnson, P.A. as its special counsel.
The Debtor requires a special counsel to handle the land use work
for its landfill operations in Pasco County, Fla., including the
legal work needed for permitting and related matters.
Shelly May Johnson will charge $350 per hour for its services.
As disclosed in court filings, Shelly May Johnson is a
"disinterested person" within the meaning of Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Shelly May Johnson, MPA, Esq.
Shelly May Johnson, P.A.
6400 Madison St
New Port Richey, FL 34652-2342
Office: 727-376-7300
Fax: 727-376-7337
Email: shelly@smjlaw.net
About Coastal Landfill Disposal of Florida
Coastal Landfill Disposal of Florida, LLC sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No.
22-41009) on Aug. 26, 2022, with up to $50,000 in assets and up to
$500,000 in liabilities. Carson Cash King, authorized
representative, signed the petition.
Judge Barbara Ellis-Monro oversees the case.
Cameron M. McCord, Esq., at Jones & Walden, LLC, Shelly May
Johnson, P.A. and Windham Brannon, LLC serve as the Debtor's
bankruptcy counsel, special counsel and accountant, respectively.
CONNECTICUT RESTORATION: Taps Bottaro Morrill & Co as Accountant
----------------------------------------------------------------
Connecticut Restoration Specialist, LLC seeks approval from the
U.S. Bankruptcy Court for the District of Connecticut to employ
Bottaro Morrill & Co, LLC as its accountant.
The firm's services include the preparation and filing of the
Debtor's tax returns, financial statements, bankruptcy schedules
and statements, and monthly operating reports.
The hourly rates charged by the firm range from $100 to $250.
As disclosed in court filings, Bottaro Morrill & Co is a
"disinterested person" within the meaning of Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Douglas Morrill, CPA
Bottaro Morrill & Co, LLC
207 Pitkin St
East Hartford, CT 06108
Phone: +1 860-289-2766
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 and Bottaro
Morrill & Co, LLC serve as the Debtor's legal counsel and
accountant, respectively.
CORE SCIENTIFIC: Case Summary & 30 Largest Unsecured Creditors
--------------------------------------------------------------
Lead Debtor: Core Scientific, Inc.
210 Barton Springs Road
Suite 300
Austin, Texas 78704
Business Description: Core Scientific, Inc. operates facilities
for digital asset mining and colocation
services in North America. It provides
blockchain infrastructure, software
solutions, and services. The company mines
digital assets for its own account and
provides hosting colocation services for
other large-scale miners.
Chapter 11 Petition Date: December 21, 2022
Court: United States Bankruptcy Court
Southern District of Texas
Eleven affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Core Scientific, Inc. (Lead Case) 22-90341
Core Scientific Mining LLC 22-90340
Core Scientific Acquired Mining LLC 22-90342
Core Scientific Operating Company 22-90343
Radar Relay, Inc. 22-90344
Core Scientific Specialty Mining (Oklahoma) LLC 22-90345
American Property Acquisition, LLC 22-90346
Starboard Capital LLC 22-90347
RADAR, LLC 22-90348
American Property Acquisitions I, LLC 22-90349
American Property Acquisitions VII, LLC 22-90350
Judge: Hon. David R. Jones
Debtors' Counsel: Alfredo R. Perez, Esq.
WEIL, GOTSHAL & MANGES LLP
700 Louisiana Street, Suite 1700
Houston, Texas 77002
Tel: (713) 546-5000
Fax: (713) 224-9511
Email: Alfredo.Perez@weil.com
- and -
Ray C. Schrock, P.C.
Ronit J. Berkovich, Esq.
Moshe A. Fink, Esq.
WEIL, GOTSHAL & MANGES LLP
767 Fifth Avenue
New York, New York 10153
Tel: (212) 310-8000
Fax: (212) 310-8007
Email: Ray.Schrock@weil.com
Ronit.Berkovich@weil.com
Moshe.Fink@weil.com
Debtors'
Investment
Banker: PJT PARTNERS LP
280 Park Avenue
New York, New York 10017,
Debtors'
Financial
Advisor: ALIXPARTNERS, LLP
909 Third Avenue
New York, New York 10022
Debtors'
Claims &
Noticing
Agent: STRETTO INC.
7 Times Square
New York, New York 10036
Total Assets as of Sept. 30, 2022: $1,404,001,000
Total Debts as of Sept. 30, 2022: $1,330,974,000
The petitions were signed by Todd DuChene as president.
A full-text copy of the Lead Debtor's petition is available for
free at PacerMonitor.com at:
https://www.pacermonitor.com/view/IA3UVAI/Core_Scientific_Inc__txsbke-22-90341__0001.0.pdf?mcid=tGE4TAMA
Consolidated List of Debtors' 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. BRF Finance Co., LLC Financing $42,364,611
Attn.: General Counsel
30870 Russell Ranch Road, Suite 250
Westlake Village, California 91362
Tel: (310) 966‐1444
Email: legal@brileyfin.com
2. Dalton Utilities Utility $6,714,988
Attn.: Tom Bundros
1200 V D Parrott Jr Parkway
Dalton, Georgia 30721
Tel: (706) 278‐1313
Fax: (706) 278‐7230
Email: tbundros@dutil.com
3. Shell Energy Solutions Utility $3,808,132
Attn.: Marty Lundstrom
21 Waterway Avenue, Suite 450
The Woodlands, Texas 77380
Tel: (832) 510‐1042
Fax: (832) 510‐1128
Email: marty.lundstrom@mp2energy.com
4. U.S. Customs and Border Patrol Customs Fees $3,375,019
Attn.: Raul Ortiz
1300 Pennsylvania Avenue, Suite 4.4‐B
Washington, District of Columbia 20229
Tel: (202) 344‐2050
Fax: (973) 368‐6913
5. Cooley LLP Professional $2,858,242
Attn.: Daniel Peale Services
1299 Pennsylvania Avenue, NW
Suite 700
Washington, District of Columbia 20004
Tel: (202) 842‐7835
Email: dpeale@cooley.com
6. Kentucky Department of Revenue Taxes $2,762,948
Attn.: Thomas B. Miller
501 High Street
Frankfort, Kentucky 40601
Tel: (502) 564‐5930
Fax: (502) 564‐8946
7. Duke Energy Utility $2,113,213
Attn.: Tammy Daber, Power Contracts
Administrator
9700 David Taylor Drive,
Mail Code: DT01X
Charlotte, North Carolina 28262
Tel: (866) 541‐8886
Email: tammy.daber@duke‐energy.com
8. Priority Power Management LLC Construction $1,767,943
Attn.: Robert L. Douglas
2201 E Lamar Boulevard, Suite 275
Arlington, Texas 76006
Tel: (408) 375‐0865
Email: rdouglas@prioritypower.com
9. Harper Construction Company, Inc. Construction $1,700,000
Attn.: Stephen Marble
2241 Kettner Boulevard, Suite 300
San Diego, California 92101
Tel: (619) 233‐7900
Fax: (619) 233‐1889
Email: lpz@harperconstruction.com
10. Trilogy LLC Equipment $1,400,000
Attn.: Shamel Bersik
6255 Saddle Tree Drive
Las Vegas, Nevada 89118
Tel: (888) 514‐4200
Email: Sam@trilogycorp.com
11. FlowTX Construction $1,200,000
Attn.: Lucas Leavitt
8610 Broadway Street, Suite 211
San Antonio, Texas 78217
Tel: (210) 455‐0580
Email: lleavitt@flowtx.com
12. Moss Adams LLP Professional $456,434
Attn.: Findley Gillespie Services
999 Third Avenue, Suite 2800
Seattle, Washington 98104
Tel: (206) 302‐6212
Email: findley.gillespie@mossadams.com
13. Cherokee County Tax Collector Taxes $413,737
Attn.: Delenna Stiles, Tax Collector
75 Peachtree Street, #225
Murphy, North Carolina 28906‐2947
Tel: (828) 837‐2421
Email: collections@cherokeecounty‐nc.gov
14. AAF International Trade Goods $266,468
Attn.: Stuart Nichols
9920 Corporate Campus Drive
Suite 2200
Louisville, Kentucky 40223
Tel: (803) 322‐8796
Email: snichols@AAFintl.com
15. Sidley Austin LLP Professional $231,085
Attn.: Scott Parel Services
2021 McKinney Avenue, Suite 2000
Dallas, Texas 75201
Tel: (214) 981‐3431
Email: sparel@sidley.com
16. Securitas Security Security $195,373
Services USA Inc. Services
Attn.: Patrick Melody
4330 Park Terrace Drive
West Lake Village, California 91361
Tel: (763) 287‐6618
Email: patrick.melody@securitasinc.com
17. CDW Direct Trade Goods $175,420
Attn.: Rick Kulevich, General Counsel
200 N. Milwaukee Avenue
Vernon Hills, Illinois 60061
Tel: (847) 465‐6000
Email: credit@cdw.com
18. CES Corporation Trade Goods $174,951
Attn.: Scott Weatherall
28029‐108 Avenue
Acheson, AB T7X 6P7
Canada
Attn.: Scott Weatherall
Tel: (780) 910‐6037
Email: s.weatherall@cescorp.ca
19. Marshall County Sheriff Taxes $162,181
Attn.: Trent Weaver, Sheriff
52 Judicial Drive
Benton, Kentucky 42025
Tel: (270) 527‐3112
Email: marshallso@marshallco.org
20. Tenet Solutions Trade Goods $139,551
Attn.: Accounting Department
1238 Grey Fox Road
Arden Hills, Minnesota 55112
Tel: (651) 604‐2838
Email: Tenet‐AR@tenetsolutions.us
21. Tenaska Power Services Co Utility $113,951
Attn.: Drew Fossum
14302 FNB Parkway
Omaha, Nebraska 68154
Tel: (817) 462‐1521
Email: TPMCustomerService@tnsk.com
22. Gensler Construction $104,110
Attn.: Todd Runkle
1011 S. Congress Avenue, Building 1,
Suite 200
Austin, Texas 78704
Tel: (512) 867‐8113
Email: todd_runkle@gensler.com
23. OP Trade Goods $97,274
Attn.: Elise Chittick
10030 Bent Oak Drive
Houston, Texas 77040
Tel: (713) 595‐0522
Email: echittick@ophouston.com
24. Bergstrom Electric Construction $89,929
Attn.: Steve Wasvick
3100 North Washington Street
Grand Forks, North Dakota 58208
Tel: (701) 775‐8897
Email: Swasvick@berstromelectric.com
25. Amazon Web Services Inc. Cloud Services $76,120
Attn.: Rashmi Manchanda
410 Terry Avenue North
Seattle, Washington 98109‐5210
Tel: (415) 539‐5057
Email: rmmanch@amazon.com
26. McDermott Will Professional $54,834
and Emery LLP Services
Attn.: Erin West
1 Vanderbilt Avenue
New York, New York 10017
Tel: (202) 756‐8135
Email: eswest@mwe.com
27. DK Construction Company Facility $40,561
Attn.: Justin Edwards, President Maintenance
5165 Gilbertsville Highway
Calvert City, Kentucky 42029‐0388
Tel: (270) 395‐7656
Fax: (270) 395‐1975
28. Reed Wells Benson and Company Construction $34,400
Attn.: Kenneth Fulk
120010 N. Central Expressway,
Suite 1100
Dallas, Texas 75243
Tel: (972) 788‐4222
Email: kfulk@rwb.net
29. LiveView Technologies Inc. Trade Goods $25,877
Attn.: Chris Parker
1226 S 1480 W
Orem, Utah 84058
Tel: (801) 221‐9408 Ext. 315
Email: chris.parker@lvt.com
30. Herc Rentals Equipment $22,898
Attn.: Leslie Hunziker Rental
27500 Riverview Center Boulevard
Suite 100
Bonita Springs, Florida 34134
Tel: (239) 301‐1675
Email: leslie.hunziker@hercrentals.com
CORE SCIENTIFIC: Crypto Miner Goes Belly Up, Has $57MM DIP Loan
---------------------------------------------------------------
Core Scientific, Inc., which owns high-performance blockchain
computing data centers, said that, after a comprehensive review of
potential alternatives and exhaustive discussions with various
Company stakeholders, the Company expects to enter into a
restructuring support agreement with an Ad Hoc Noteholder Group,
representing more than 70% of the holders of its convertible
notes.
To implement the comprehensive restructuring transaction
contemplated by the Restructuring Support Agreement, on December
21, 2022, the Company filed voluntary petitions for reorganization
under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy
Court for the Southern District of Texas. The Company plans to move
swiftly through the restructuring process.
During this process and upon emergence, the Company will continue
to operate its existing self-mining and hosting operations, which
remain significantly cash flow positive on a debt-free basis. The
Company is committed to operating normally during the
implementation of its restructuring. The Company remains dedicated
to providing hosting services and self-mining in its
state-of-the-art data centers.
The Ad Hoc Noteholder Group has agreed to provide commitments for a
debtor-in-possession facility of more than $57 million and has
agreed to support the syndication of up to an additional $18
million in new money DIP Facility loans to all holders of
convertible notes. These funds, along with ongoing cash generated
from operations, are anticipated to provide the necessary financing
to effectuate the planned restructuring, facilitate the emergence
from Chapter 11, and cover the fees and expenses of legal and
financial advisors.
The Restructuring Support Agreement will be subject to a "fiduciary
out" for the Company to pursue better alternatives. As
contemplated, the restructuring will reduce the Company's funded
indebtedness by hundreds of millions of dollars and reduce annual
interest expense by tens of millions of dollars.
Pursuant to the contemplated Restructuring Support Agreement, the
Company's existing convertible noteholders will equitize their debt
into a significant majority of the common stock of the reorganized
company. In addition, holders of general unsecured claims and
existing common shareholders would also receive meaningful
recoveries in the form of reorganized common stock and warrants
exercisable for significant portions of the common stock of the
reorganized enterprise upon obtaining certain valuation thresholds.
Both the common stock and the warrants will enable stakeholders to
capture a share of the Company's future growth.
The filing of these cases was necessitated by a decline in the
Company's operating performance and liquidity suffering from the
prolonged decrease in the price of bitcoin, the increase in
electricity costs necessary to power the Company's data centers,
and the failure by certain of its hosting customers to honor their
payment obligations. In response to these factors, the Company has
actively taken steps to decrease monthly costs, delay construction
expenses, reduce and delay capital expenditures and increase
hosting profitability.
The Company extensively explored potential financing alternatives
and actively negotiated with various stakeholders. In consultation
with its advisors, the Special Committee of the Board of Directors
of the Company determined that the restructuring contemplated by
the Restructuring Support Agreement represents the optimal path
forward and best positions the Company for long-term success.
Core Scientific is being advised by Weil, Gotshal & Manges LLP as
its legal advisor, AlixPartners, LLP as its financial advisor and
PJT Partners LP as its investment banker.
Event of Default
According to the Company, the filing of the Chapter 11 Cases
constitutes an event of default that accelerated the Company's
obligations under the following debt instruments:
* Term Loan and Purchase Money Security Agreement, dated as of
January 30, 2021, by and between Core Scientific Operating Company
(f/k/a Core Scientific, Inc.), as borrower, and Jack Novak, as
lender, of which $10 million aggregate principal amount remain
outstanding.
* Payment Agreement, dated as of February 25, 2021, by and
between Core Scientific Operating Company (f/k/a Core Scientific,
Inc.), as borrower, and Dell Financial Services L.L.C., as lender,
related to approximately $166,000 outstanding aggregate amount of
fees.
* Secured Convertible Note Purchase Agreement, dated as of
April 19, 2021 (as amended, restated, amended and restated,
supplemented or otherwise modified from time to time), by and among
Core Scientific Holding Co., the guarantors, U.S. Bank National
Association, as note agent and collateral agent, and the purchasers
of the notes issued thereunder, governing the 10.00% Convertible
Notes due 2025 which mature on April 19, 2025, of which $215
million aggregate principal amount remain outstanding, excluding
accrued PIK interest.
* Convertible Note Purchase Agreement, dated as of August 20,
2021 (as amended, restated, amended and restated, supplemented or
otherwise modified from time to time), by and among Core Scientific
Holding Co., the guarantors, U.S. Bank National Association, as
note agent and collateral agent, and the purchasers of the notes
issued thereunder, governing the 10.00% Convertible Notes due 2025
which mature on April 19, 2025, of which $298.3 million aggregate
principal amount remain outstanding, excluding accrued PIK
interest.
* Facility and Security Agreement, dated as of December 30,
2021, by and between Core Scientific Operating Company (f/k/a Core
Scientific, Inc.), as borrower, and BlockFi Lending LLC, as lender,
related to $6.7 million outstanding aggregate principal amount of
loans.
* Facility and Security Agreement, dated as of December 30,
2021, by and between Core Scientific Operating Company (f/k/a Core
Scientific, Inc.), as borrower, and BlockFi Lending LLC, as lender,
related to $47.2 million outstanding aggregate principal amount of
loans.
* Master Lease Agreement, dated as of December 31, 2021, by
and between Core Scientific Operating Company (f/k/a Core
Scientific, Inc.), as lessee, and MassMutual Asset Finance LLC, as
lessor, of which $41.4 million aggregate principal amount remain
outstanding.
* Master Security Agreement, dated as of March 24, 2022, by
and between the Company, as borrower, and Barings Private Credit
Corp., Barings Capital Investment Corporation and Barings BDC, Inc.
as lenders, of which $63.8 million aggregate principal amount
remain outstanding.
* Bridge Promissory Notes, dated as of April 7, 2022 (as
amended, restated, amended and restated, supplemented, or otherwise
modified from time to time), by and between Core Scientific, Inc.,
as borrower, and BRF Finance Co, LLC and B. Riley Commercial
Capital, LLC, as Noteholders, related to $41.8 million outstanding
aggregate principal amount of loans.
Also, on December 15, 2022, the Company received written notice
from NYDIG ABL LLC (f/k/a Arctos Credit, LLC) ("NYDIG") notifying
the Company that it was in default of the Master Equipment Finance
Agreement, dated as of October 27, 2020 (the "NYDIG MEFA"), by and
between the Company and NYDIG and that NYDIG was declaring the
principal amount due and owing under each of the Schedules and all
other Obligations (as such terms are defined in the NYDIG MEFA),
including all previously instituted default interest at a rate per
annum equal to 5.0% and a previously instituted late charge equal
to 5.0% on all outstanding Obligations pursuant to Section 12(i)
and Section 3(b) of the NYDIG MEFA, respectively. As of December
15, 2022, the outstanding principal amount under the NYDIG MEFA was
$38.6 million.
The Company says any efforts to enforce payment obligations under
the Debt Instruments are automatically stayed as a result of the
filing of the Chapter 11 Cases and the holders' rights of
enforcement in respect of the Debt Instruments are subject to the
applicable provisions of the Bankruptcy Code.
In connection with the review of strategic alternatives, the
Company entered into discussions, and confidentiality agreements,
with certain holders of its Convertible Notes.
In connection with such discussions, and pursuant to the
Confidentiality Agreements, the Ad Hoc Noteholders were provided
with certain confidential information regarding the Company,
including http://tiny.cc/l4b2vz
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.
Core Scientific Inc. filed a petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. S.D. Tex. Case No. 22-90340) on
December 21, 2022. In the petition filed by Todd DuChene, as
president, the Debtor reported assets and liabilities between $1
billion and $10 billion each.
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.
CORE SCIENTIFIC: Directors Adopt Key Employee Retention Plan
------------------------------------------------------------
Core Scientific, Inc.'s Board of Directors on December 18, 2022,
approved and adopted the Core Scientific Key Employee Retention
Plan, which will provide retention awards to certain key employees,
including certain of the Company's named executive officers.
Executive KERP amounts were paid upon adoption of the KERP, subject
to possible clawback if the executive voluntarily terminates
employment prior to vesting. The executive KERP awards will become
vested upon the earlier of (a) 12 months following execution of the
KERP agreement and (b) the occurrence of a specified restructuring
event, as defined in the KERP. If an executive participant is
terminated for "cause" or voluntarily terminates his or her
employment with the Company without "good reason" (each as defined
in the KERP) prior to the award becoming vested, the executive
participant will forfeit the award and must repay the Company the
gross (pre-tax) amount of such award.
In addition, the Compensation Committee of the Board has approved
increases in the annual base salaries of certain executive
officers.
The KERP and the salary increases were formulated based upon the
recommendations of the independent compensation consultant of the
Compensation Committee of the Board.
The amount awarded under the KERP and the increased salary amount
for the Company's Named Executive Officers:
Retention Award Increased
Executive Officer Amount Salary Amount
----------------- --------------- -------------
Todd M. DuChene
President and
Chief Legal Officer $375,000 $200,000
Denise Sterling
Chief Financial Officer $50,000 Nil
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.
Core Scientific Inc. filed a petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. S.D. Tex. Case No. 22-90340) on
December 21, 2022. In the petition filed by Todd DuChene, as
president, the Debtor reported assets and liabilities between $1
billion and $10 billion each.
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.
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.
Core Scientific Inc. filed a petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. S.D. Tex. Case No. 22-90340) on Dec.
21, 2022. In the petition filed by Todd DuChene, as president, the
Debtor reported assets and liabilities between $1 billion and $10
billion each.
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.
CORE SCIENTIFIC: Falls Short of Nasdaq Bid Price Requirement
------------------------------------------------------------
Core Scientific, Inc. said in a Form 8-K filed with the Securities
and Exchange Commission it received a written notice from the
Listing Qualifications Staff of The Nasdaq Stock Market on Dec. 13,
2022, notifying the Company that, because the closing bid price for
the Company's common stock, par value $0.0001 per share, has fallen
below $1.00 per share for 30 consecutive business days, the Company
no longer meets the minimum bid price requirement for continued
inclusion on The Nasdaq Global Select Market pursuant to Nasdaq
Listing Rule 5450(a)(1). The Notice has no immediate effect on the
listing of the Company's Common Stock.
Pursuant to Nasdaq Marketplace Rule 5810(c)(3)(A), the Company has
an initial compliance period of 180 calendar days, or until June
12, 2023, to regain compliance with the Minimum Bid Price
Requirement. If at any time before June 12, 2023, the closing bid
price of the Common Stock is at least $1.00 per share for a minimum
of 10 consecutive business days, Nasdaq will provide written
confirmation stating that the Company has achieved compliance with
the Minimum Bid Price Requirement.
If the Company's Common Stock does not regain compliance with the
Minimum Bid Price Requirement during this initial 180-day grace
period, the Company may be eligible for an additional grace period
of 180 calendar days provided that (i) the Company satisfies
Nasdaq's continued listing requirement for market value of publicly
held shares and all other initial listing standards, with the
exception of the Minimum Bid Price Requirement; and (ii) the
Company provides written notice to Nasdaq of its intention to cure
the delinquency during the second grace period.
The Company intends to monitor the closing bid price of its Common
Stock and may, if appropriate, consider available options to regain
compliance with the Bid Price Requirement. The Company gives no
assurance that it will be able to regain compliance with the Bid
Price Requirement or that Nasdaq will grant the Company a further
extension of time to regain compliance, if applicable.
About Core Scientific
Headquartered in Austin, Texas, Core Scientific, Inc. is a
large-scale operator of dedicated, purpose-built facilities for
digital asset mining and a provider of blockchain infrastructure,
software solutions and services. Core Scientific mines digital
assets for its own account and provides hosting services for other
large-scale miners. The Company is one of the largest blockchain
infrastructure, hosting provider and digital asset mining companies
in North America, with approximately 457MW of power as of Dec. 31,
2021, and 497MW as of Jan. 31, 2022. Core Scientific 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). In addition, in October 2021, the Company announced
the entry of an agreement with the City of Denton, Texas and an
affiliate of Tenaska Energy, Inc. to develop its seventh facility,
a blockchain data center in Denton, Texas, which became operational
in February 2022 with an initial operating capacity approaching 22
MW and is expected to have 300MW of power when completed. In
February 2022, the Muskogee City-County Port Authority announced an
agreement with Core to develop a 500MW data center at the Port of
Muskogee John T. Griffin Industrial Park.
Core Scientific reported a net loss of $32.50 million for the year
ended Dec. 31, 2021, and a net loss of $10,400 for the period from
Dec. 29, 2020 (inception) through Dec. 31, 2020. As of Sept. 30,
2022, the Company had $1.40 billion in total assets, $1.33 billion
in total liabilities, and $73.03 million in total stockholders'
equity.
"Our future capital requirements will depend on many factors
including our revenue growth rate, the timing and extent of
spending to support further sales and marketing and research and
development efforts and the timing and extent of additional capital
expenditures to invest in the expansion of existing facilities as
well as new facilities. It is very difficult to estimate our
future liquidity requirements. The Company anticipates that
existing cash resources will be depleted by the end of 2022 or
sooner. Depending on the Company's assumptions regarding the
timing and ability to achieve more normalized levels of operating
revenue, the estimates of amounts of required liquidity vary
significantly. Similarly, it is very difficult to predict when or
if bitcoin prices will recover or energy costs will abate. Given
the uncertainty regarding the Company's financial condition,
substantial doubt exists about the Company's ability to continue as
a going concern for a reasonable period of time," Core Scientific
stated in its Quarterly Report for the period ended Sept. 30, 2022.
CROSSETT FORD: 8th Cir. Affirms Default Judgment Against PIRS
-------------------------------------------------------------
In the appealed case titled PIRS Capital, LLC, Appellant, v. Renee
S. Williams; Maurice Bailey, Appellees, Case No. 22-1723, (8th
Cir.), the U.S. Court of Appeals for the Eighth Circuit affirms the
district court's order that affirmed the bankruptcy court's April
2021 Order.
PIRS Capital, LLC, appeals the district court's order that affirmed
the bankruptcy court's April 2021 order denying PIRS' motion to set
aside a January 2018 default judgment in the amount of $157,214.
PIRS argues it is entitled to this extraordinary post-judgment
relief because the bankruptcy trustee did not properly serve her
adversary complaint seeking recovery of preferential transfers.
PIRS's 2017 website states that it was founded in 2012 as a new
source of capital for small businesses. PIRS had agreements in
effect to purchase accounts receivable from Crossett Ford Lincoln
on March 21, 2015, when Crossett filed a voluntary petition for
protection under Chapter 7 of the Bankruptcy Code in the Western
District of Arkansas. PIRS promptly filed a Proof of Claim for
$137,682 of unpaid advances. The Proof of Claim was signed by
Alexander Parsol -- Managing Partner.
In March 2017, bankruptcy trustee Renee Williams filed an adversary
complaint against PIRS in the Western District of Arkansas
Bankruptcy Court. On March 14, the Trustee served the adversary
complaint and summons by certified mail to: PIRS Capital, LLC
Attention: Alexander Parsol, Managing Partner 40 Exchange Place,
Suite 1607 New York, NY 10005.
The Trustee based this method of service on the following
information. First, PIRS's Proof of Claim listed Managing Partner
Alexander Parsol, who signed the Proof of Claim, as the proper
person and 40 Exchange Place, Suite 1607, as the address where
notices should be sent. Second, to confirm Parsol was the
appropriate agent, the Trustee researched New York Department of
State records. A Division of Corporations printout stated that PIRS
had no Registered Agent; the "Selected Entity Address Information"
listed the address to which DOS will mail process as Alexander
Parsol, 40 Exchange Place, Suite 1606, New York, New York, 10005.
By March 2017, this was outdated information -- PIRS had moved to
Suite 403 six months earlier, and Parsol left the organization a
year earlier. PIRS had failed to update either its bankruptcy Proof
of Claim or the DOS website with these changes.
Subsequently, the Trustee served a Motion for Entry of Default and
Motion for Default Judgment and a notice of a hearing on that
motion on PIRS at Suite 1607 -- PIRS failed to respond. On July 28,
the Clerk of Court filed an Entry of Default. On Jan. 11, 2018, the
bankruptcy court granted the Trustee a default judgment for
$156,864 plus the filing fee. The Entry of Default and notice of
the default judgment were also sent to PIRS at Suite 1607. None of
these notices and pleadings was returned as undeliverable.
In September 2020, thirty-two months after entry of the default
judgment, the court entered an order sustaining the Trustee's
objection to PIRS' Proof of Claim. Copies of this order were sent
to Suite 1607 and Suite 403; the record reflects service at Suite
403. Claiming this was its first notice of any adverse action in
the Crossett bankruptcy, PIRS researched, discovered the adversary
proceeding, and asked the Trustee to vacate the default judgment.
The Trustee declined, and PIRS moved to set aside the default
judgment.
PIRS argued first, that the judgment was void under Federal Rule
60(b)(4) because the adversary complaint was served on the wrong
person and address; and second, that this error denied PIRS "full
and fair opportunity to litigate its defenses," justifying relief
under Federal Rule 60(b)(6).
After an evidentiary hearing the bankruptcy court denied the
motion, concluding (i) the Trustee properly effected service using
the information PIRS provided in its Proof of Claim, and exercised
due diligence by researching the DOS website; and (ii) PIRS's
failure to respond to the adversary complaint and subsequent motion
for default judgment was due to its own failings, including making
Parsol its agent for purposes of service, failing to update
bankruptcy and DOS records, and failing to ensure mail would be
forwarded to its new address. The district court affirmed for these
reasons, carefully addressing the Rule 60(b)(4) and 60(b)(6)
issues.
What PIRS' argument totally ignores is the controlling Supreme
Court definition of when a judgment is void for purposes of Rule
60(b)(4). The Supreme Court held, in the case of United Student Aid
Funds, Inc. v. Espinosa, 559 U.S. 260, 270-71 (2010), that "A void
judgment is a legal nullity . . . one so affected by a fundamental
infirmity that the infirmity may be raised even after the judgment
became final. . . Rule 60(b)(4) applies only in the rare instance
where a judgment is premised either on a certain type of
jurisdictional error or on a violation of due process that deprives
a party of notice or the opportunity to be heard. . . Federal
courts considering Rule 60(b)(4) motions that assert a judgment is
void because of a jurisdictional defect generally have reserved
relief only for the exceptional case in which the court that
rendered judgment lacked even an arguable basis for jurisdiction."
Consistent with Espinosa, the Court points out that both the
bankruptcy court and the district court concluded that the
bankruptcy court had at least an arguable basis for jurisdiction.
First, the Trustee arguably complied with Rule 7004(b)(3) by
serving PIRS in the manner directed in its Proof of Claim, a
direction reinforced by the Trustee's diligent research of PIRS on
the DOS website. Second, the Trustee sent the summons and complaint
by certified mail, return receipt requested, and received the
receipt showing the summons and complaint was actually received by
a PIRS employee at its Suite 403 address. The Supreme Court in
Espinosa expressly stated that receiving actual notice "more than
satisfied [PIRS's] due process rights." Third, "the bankruptcy
court reasoned that an entity served by legal process should not
benefit from its own inaccurate or dated records when others
attempt in good faith to determine the appropriate agent for
service." As the Supreme Court noted in Espinosa, the Bankruptcy
Rules that apply in an adversary proceeding "are procedural rules
adopted by the Court for the orderly transaction of its business
that are not jurisdictional."
PIRS further argues the bankruptcy court abused its discretion in
refusing to set aside the default judgment under Rule 60(b)(6),
which provides that a court may relieve a party from a final
judgment or order for "any other reason that justifies relief."
Rule 60(b)(6) relief is available "only where exceptional
circumstances have denied the moving party a full and fair
opportunity to litigate his claim and. . . receive adequate
redress." PIRS argues the Trustee's improper service "deprived it
of a full and fair opportunity to present meritorious defenses."
PIRS sought relief based on the Trustee's allegedly improper
service under Rule 60(b)(4). Relief under Rule 60(b)(4) was not
"inapplicable." PIRS simply failed to prove that the Trustee's
service, which provided PIRS actual notice and arguably complied
with the Bankruptcy Rules, rendered the default judgment "void."
PIRS's claim of exceptional circumstances is that the Trustee's
service "deprived it of a full and fair opportunity to present
meritorious defenses." That could have been the basis for a claim
under Rule 60(b)(1), which permits a court to set aside a default
judgment for "mistake. . . or excusable neglect." PIRS did not make
this claim, no doubt because the above-summarized facts establish
that, with actual notice of the summons and complaint and
subsequent notices and pleadings, PIRS's failure to answer the
adversary complaint or timely contest the Trustee's motion for
default judgment were due to its own inexcusable neglect.
Therefore, the Court agrees with the district court that "the
circumstances that led to PIRS's failure to defend were of its own
making and therefore PIRS cannot establish the existence of
exceptional circumstances" that warrant Rule 60(b)(6) relief.
A full-text copy of the Order dated Dec. 8, 2022, is available at
https://tinyurl.com/yr4zekbc from Leagle.com.
DEXTER GROUP: Gets OK to Hire Latham as Bankruptcy Counsel
----------------------------------------------------------
Dexter Group Investments, Inc. received approval from the U.S.
Bankruptcy Court for the Middle District of Florida to hire Latham,
Luna, Eden & Beaudine, LLP as its legal counsel.
The firm's services include:
(a) advising as to the Debtor's rights and duties in its
Chapter 11 case;
(b) preparing pleadings related to the case, including a plan
of reorganization; and
(c) taking all other necessary actions incident to the proper
preservation and administration of the estate.
Latham will charge $475 per hour for attorney's services and $105
per hour for paraprofessional services.
The firm received a retainer in the amount of $21,738.
In addition, the firm will seek reimbursement for its out-of-pocket
expenses.
Justin Luna, Esq., a partner at Latham, disclosed in a court filing
that his firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Justin M. Luna, Esq.
Latham Luna Eden & Beaudine, LLP
201 S. Orange Ave., Suite 1400
Orlando, FL 32801
Tel: (407) 481-5800
Fax: (407) 481-5801
Email: jluna@lathamluna.com
About Dexter Group Investments
Dexter Group Investments, Inc. owns a multiple-unit commercial
building consisting of retail stores located at 319 Brevard Avenue,
Cocoa, Fla.; and residential real property located at 2909 Carver
St., Mims, Fla., with a 1,218-square-foot multiple living unit
(duplex).
Dexter Group Investments filed a petition for relief under
Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla.
Case No. 22-04113) on Nov. 18, 2022, with between $1 million and
$10 million in both assets and liabilities. Aaron R. Cohen has been
appointed as Subchapter V trustee.
Judge Grace E. Robson oversees the case.
The Debtor is represented by Justin M. Luna, Esq., at Latham, Luna,
Eden & Beaudine, LLP.
DGS REALTY: Wins Cash Collateral Access Thru Feb 2023
-----------------------------------------------------
The U.S. Bankruptcy Court for the District of New Hampshire
authorized DGS Realty, LLC to use the cash collateral of PHH
Mortgage Services, acting as servicer for U.S. Bank National Trust
Association, as Trustee for Lehman Brothers Small Balance
Commercial Mortgage Pass Through Certificates, Series 2006-3.
The Debtor is permitted to use and expend the proceeds of cash
collateral to pay the costs and expenses incurred in the ordinary
course of its business during the period from January 1 through
February 27, 2022, or the date on which the Court enters an order
revoking the Debtor's right to use cash collateral in accordance
with the budget.
The Debtor will pay PHH Mortgage its monthly payment of $6,750,
plus real estate tax escrow in the amount of $3,066, each month,
pending further Court order.
Absent the Court's entry of a further order extending
authorization, the Debtor's access to use cash collateral will
terminate upon the earliest of:
a. the last day of the Use Period;
b. the earliest date on which a final hearing on cash
collateral requirements can be held under the notice and service
requirements of Bankruptcy Rules 4001(b) and (d) and 7004(h);
c. appointment of a Trustee pursuant to Bankruptcy Code
Section 1104;
d. conversion of the Debtor's case to one under Chapter 7 of
the Bankruptcy Code;
e. dismissal of the Debtor's case; or
f. entry of an order granting a Motion for Relief from
Automatic Stay with respect to any property that is PHH Mortgage's
collateral.
A hearing on the Debtor's further use of cash collateral is
scheduled for February 22 at 11 a.m.
A full-text copy of the order and the Debtor's budget for the
period from January to February 28, 2022, is available at
https://bit.ly/3YRZln4 from PacerMonitor.com.
The Debtor projects $98,029 in total income and $9,816 in total
expenses for November 2022.
About DGS Realty
Based in Concord, New Hampshire, DGS Realty, LLC, is a real estate
limited liability company. Formed around May 10, 2017, the company
is owned by David H. Booth, Manager, Stephen W. Booth, and Gregory
A. Booth, each having a 1/3 interest.
DGS Realty filed a Chapter 11 petition (Bankr. D.N.H. Case No.
22-10028) on January 24, 2022. In the petition signed by David H.
Booth, the manager, the Debtor estimated assets and debts between
$1 million and $10 million.
Judge Bruce A. Harwood oversees the case.
Representing the Debtor as counsel is Eleanor Wm Dahar, Esq., at
Victor W. Dahar Professional Association.
DURA-METRICS INC: Has Cash Collateral Access Thru January 13
------------------------------------------------------------
Dura-Metrics, Inc. won interim authority from the U.S. Bankruptcy
Court for the Eastern District of California, Sacramento Division,
to use cash collateral in accordance with the proposed budget and
provide adequate protection from December 5, 2022 through January
13, 2023.
Dura-Metrics had sought permission to access cash collateral from
December 5, 2022 through May 31, 2023. In its budget, the Debtor
sought to use up to $78,667 from December 5 through the week of
January 13.
The cash collateral at issue is income and receivables generated by
the Debtor's business transactions whereby the Debtor produces and
wholesales dental implants, equipment and related supplies by
direct sales to the University of California School of Dentistry,
UOP School of Dentistry, the US Veterans Administration Dental
Clinics, General Dentists and Prosthodontists.
The Debtor endured two Sonoma County wildfires (2017 Tubbs and 2019
Kincade) where it sustained both facilities damage and extended
closure. It was the recipient of a targeted malware attack in 2019
which led to the destruction of its accounting data, which had to
be re-entered from scratch. The Debtor also discovered its internal
bookkeeper had failed to pay employer payroll tax obligations
through 2019, resulting in over $400,000 of unpaid taxes.
The Debtor moved its core operations to Sacramento in 2020 and has
re-built its capabilities. In 2017 peak total sales were over $5.5
million. The Debtor suffered significant reduction in income during
the COVID-19 pandemic because of its core customer base not
operating under state ordered shutdowns. In 2022 sales are
recovering with projected revenue of $2.25 million, while 2023
sales are projected to increase to $3.5 million with earnings
before interest, taxes, depreciation, and amortization of 20%,
equating to $700,000.
The Debtor projects the present staff and facilities to have the
capacity to generate over $7 million in annual sales with 20%
EBITDA, equating to $1.4 million. Given current new client
acquisition rates, $7 million in sales are conservatively projected
for 2025.
Fora Financial, LLC holds a first priority security interest in the
Debtor's personal property assets utilized in the Debtor's
business. The Debtor has scheduled Fora Financial as a secured
creditor holding a $145,084. Pursuant to a UCC-1 search with the
California Secretary of State on December 1, 2022. Fora Financial
filed a UCC-1 financing statement on May 19, 2019, though Financial
Agent Services, as a representative of Fora Financial.
Formula 5 Capital dba Formula Funding holds a second priority
security interest in the personal property assets of the Debtor
utilized in the Debtor's business. The Debtor has scheduled Formula
5 Capital as a secured creditor holding an undisputed claim in the
amount of $106,802. Pursuant to a UCC-1 search with the California
Secretary of State on December 1, 2022, Formula 5 Capital filed a
UCC-1 financing statement on August 23, 2019.
Employment Development Department holds a third priority security
interest in the personal property assets of the Debtor utilized in
the Debtor's business. The Debtor has scheduled EDD as a secured
creditor holding an undisputed claim in the amount of $30,598.
Pursuant to a UCC-1 search with the California Secretary of State
on December 1, 2022, EDD filed a UCC-1 financing statement on
September 10, 2021.
The California Department of Tax and Fee Administration holds a
fourth priority security interest in the personal property assets
of the Debtor utilized in the Debtor's business. The Debtor has
scheduled CDTFA as a secured creditor holding an undisputed claim
in the amount of $337,401. Pursuant to a UCC-1 search with the
California Secretary of State on December 1, 2022, CDTFA filed a
UCC-1 financing statement on October 14, 2021.
The California Department of Tax and Fee Administration also holds
a fifth priority security interest in the personal property assets
of the Debtor utilized in the Debtor's business. The Debtor has
scheduled CDTFA as a secured creditor holding an undisputed claim
in the amount of $51,208. Pursuant to a UCC-1 search with the
California Secretary of State on December 1, 2022, CDTFA filed a
UCC-1 financing statement on March 25, 2022.
The Employment Development Department holds a sixth priority
security interest in the personal property assets of the Debtor
utilized in the Debtor's business. The Debtor has scheduled EDD as
a secured creditor holding an undisputed claim in the amount of
$26,292. Pursuant to a UCC-1 search with the California Secretary
of State on December 1, 2022, EDD filed a UCC-1 financing statement
on August 26, 2022.
The Debtor will provide Fora Financial, Formula 5 Capital, CDTFA
and EDD with adequate protection through:
a. replacement liens on post-petition Cash Collateral (other
than avoidance actions) and other property generated by Debtor of
the same type and nature as existed when Debtor filed its case;
and
b. payments of adequate protection to the Secured Parties
starting in January 2023 at 1% of the Creditors estimated claim
amount.
The Interim Order provides that the Debtor will pay the Creditors
starting January 1 these monthly payments:
Proposed Adequate
Creditor Protection Payment
-------- ------------------
Fora Financial LLC $1,450.84
Formula 5 Capital
dba Formula Funding $1,068.02
EDD $305.98
CDTFA $3,374.01
CDTFA $512.08
EDD $262.92
TOTAL: $6,973.87
The hearing to consider entry of an order granting the relief
requested in the Motion on a final basis is set for January 12 at
11:00 a.m.
About Dura-Metrics Inc.
Dura-Metrics Inc. -- https://www.dentalmasters.com/ -- is a dental
laboratory in Rohnert Park, California. For over 65 years, its
expertly trained technicians and staff have provided superior
dental lab services to dental practices nationwide.
Dura-Metrics, Inc., filed a petition for relief under Subchapter V
of Chapter 11 of the Bankruptcy Code (Bankr. E.D. Cal. Case No.
22-23151) on Dec. 5, 2022. In the petition filed by Michael
Kulweic, as president, the Debtor reported assets between $100,000
and $500,000 and liabilities between $1 million and $10 million.
The Debtor is represented by Gabriel E. Liberman, Esq., at Law
Offices of Gabriel E. Liberman, APC.
EAGLE BEAR: Gets OK to Hire Baldwin Law Firm as Special Counsel
---------------------------------------------------------------
Eagle Bear Inc. received approval from the U.S. Bankruptcy Court
for the District of Montana to employ Baldwin Law, PLLC as its
special counsel.
The Debtor requires general counseling in connection with the
litigation involving Capitol Indemnity Corporation.
Baldwin Law will be paid at these rates:
Robert k. Baldwin $450 per hour
Andres N. David $250 per hour
Heather Bolton, paralegal $135 per hour
As disclosed in court filings, Baldwin Law does not represent
interest adverse to the Debtor or the estate in the matters upon
which the firm is to be engaged.
The firm can be reached through:
Robert k. Baldwin, Esq.
Baldwin Law, PLLC
P.O. Box 10850
Bozeman, MT 59719
Phone: (406) 551-9993
Email: rbaldwin@baldwinlawfirm.com
About Eagle Bear
Eagle Bear, Inc. operates RV (Recreational Vehicle) Parks and
recreational camping ground resort.
Eagle Bear filed a voluntary petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. D. Mont. Case No. 22-40035) on May
23, 2022, with up to $10 million in both assets and liabilities.
Susan Brooke, president of Eagle Bear, signed the petition.
Judge Benjamin P. Hursh oversees the case.
Patten, Peterman, Bekkedahl, and Green, PLLC serves as the Debtor's
legal counsel.
EAGLE DUNES OWNERS: Case Summary & Eight Unsecured Creditors
------------------------------------------------------------
Debtor: Eagle Dunes Owners Association LLC
2621 Palmetto Ridge Circle
Apopka, FL 32712
Business Description: Eagle Dunes owns 50% interest in each of the
following real properties located at: (1)
2887 Sweetspire Cir, Kissimmee, FL; (2) 3789
Blackthorn Ct, Orange Park, FL, (3) 11565
Whispertin Brook Ln, Jacksonville, FL; and
(4) 2621 Palmetto Ridge Cir Apopka, FL,
having an aggregate current value of
$625,000.
Chapter 11 Petition Date: December 20, 2022
Court: United States Bankruptcy Court
Middle District of Florida
Case No.: 22-04489
Debtor's Counsel: Erick Steffens, Esq.
STEFFENS LAW FIRM PLLC
250 International Pkwy Suite 134
Lake Mary, FL 32746
Tel: 407-492-8660
Email: Erick@steffens-law.com
Total Assets: $625,000
Total Liabilities: $1,897,470
The petition was signed by Oleh Vaselow as authorized agent.
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/XQKXUUY/Eagle_Dunes_Owners_Association__flmbke-22-04489__0001.0.pdf?mcid=tGE4TAMA
EMPLOYEE LOAN: Seeks Cash Collateral Access Thru Feb 2023
---------------------------------------------------------
Employee Loan Solutions, LLC asks the U.S. Bankruptcy Court for the
Southern District of California for authority to use cash
collateral on an interim basis in accordance with the budget
through February 14, 2023.
The Debtor requires the use of cash collateral to maintain the
day-to-day business operations and pay contractors/employees and
vendors on a timely basis pending confirmation of a plan.
The cash collateral is subject to a purported lien in favor of
Sunrise Banks, National Association.
In February 2018, the Debtor closed two loans from Sunrise Banks
totaling approximately $7.6 million. The Bank is a non-statutory
insider of the Debtor because the Bank's Chairman and CEO, David
Reiling, was one of the original investors in the Debtor. Mr.
Reiling also owns 51,075 shares of the Debtor's parent company, Emp
Loan Holdings Inc.
The Debtor became cash-flow positive in 2022, however, it will be
unable to pay off the Loan with the Bank by the maturity date of
December 31, 2022. Since the summer of 2020, the Debtor has
approached the Bank multiple times in an attempt to restructure,
extend or renegotiate the debt owed, without success. In July 2022,
the Debtor engaged an investment banker, Impact Capital, to assist
the Debtor in a potential sale or capital infusion. Although Impact
Capital has solicited several interested purchasers and potential
lenders, the Bank has refused to extend the Maturity Date, which
necessitated the Debtor's bankruptcy filing.
As adequate protection, the Debtor will grant to the Bank a
replacement lien against the Debtor's personal property assets and
the proceeds thereof, to the same extent, priority and validity as
the lien held by the Bank as of the Petition Date.
As additional adequate protection to the Bank, the Debtor proposes
to make monthly payments to the Bank in the amount of $51,000.
A copy of the motion is available at https://bit.ly/3hELqQj from
PacerMonitor.com.
About Employee Loan Solutions, LLC
Employee Loan Solutions, LLC is a wholly owned subsidiary of Emp
Loan Holdings Inc. The Debtor markets and services a web-based
employee benefit platform called TrueConnect a trademarked brand
since 2016. TrueConnect is an employee financial wellness benefit
offered at no cost or financial risk to employers.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Cal. Case No. 22-03210) on December
16, 2022. In the petition signed by Douglas Farry, CEO, the Debtor
disclosed $38,144,499 in assets and $7,613,600 in liabilities.
Caroline R. Djang, Esq., at Buchalter, is the Debtor's legal
counsel.
ENERGY DRILLING: Appointment of Examiner Sought
-----------------------------------------------
Energy Drilling Services, LLC asked the U.S. Bankruptcy Court for
the Eastern District of Michigan to appoint an examiner to
investigate allegations involving members of the company.
Kaitlyn Adler and two other members of Energy Drilling Services are
facing allegations of improper diversion of the company's assets as
well as threats of possible prosecution for defalcation and
embezzlement.
Jeffrey Chimovitz, Esq., Energy Drilling Services' attorney, said
results of the investigation "may reduce valid objections" to the
company's exercise of its power to propose a plan to exit
bankruptcy.
About Energy Drilling Services
Energy Drilling Services LLC, a drilling contractor in Fenton,
Mich., filed a voluntary petition for relief under Chapter 11 of
the Bankruptcy Code (Bankr. E.D. Mich. Case No. 22-31772) on Nov.
29, 2022. In the petition signed by its managing member, Kaitlyn
Adler, the Debtor disclosed up to $10 million in both assets and
liabilities.
Jeffrey A. Chimovitz, Esq., at Jeffrey A. Chimovitz, Atty serves as
the Debtor's counsel.
ESJ TOWERS: Gets OK to Hire Special Counsel in Chubb Insurance Suit
-------------------------------------------------------------------
ESJ Towers, Inc. received approval from the U.S. Bankruptcy Court
for the District of Puerto Rico to employ a special counsel.
The Debtor has selected Luis Rodriguez Lopez, Esq., to substitute
Luis Vivoni Lopez, Esq., in the state court litigation styled
Consejo de Titulares del Condominio ESJ Towers, ESJ Towers, Inc.,
Attenure Holdings Trust 1 y HRH Property Holdings LLC v. Chubb
Insurance Company of Puerto Rico (Civil Case Num. CA2019CV03427)
with the Court of First Instance of Puerto Rico, Superior Section
of Carolina.
Mr. Lopez will charge $225 per hour for his services and $125 per
hour for his associates and contract attorneys.
In court papers, Mr. Lopez disclosed that he is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.
Mr. Lopez holds office at:
Luis M. Rodriguez Lopez, Esq.
P.O. Box 70250, Suite 279
San Juan, PR 00936
Tel: (787)-767-7502
Mobile: (787-460-3193
Email: rodríguezlopez@grllaw.net
About ESJ Towers
ESJ Towers, Inc. owns the ESJ Towers in Carolina, P.R. The luxury
apartments and condo units at ESJ Towers have direct access to Isla
Verde Beach, widely considered one of the best in Puerto Rico.
ESJ sought protection under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. D.P.R. Case No. 22-01676) on June 10, 2022, with as much as
50 million in both assets and liabilities. ESJ President Keith St.
Clair signed the petition.
Judge Enrique S. Lamoutte Inclan oversees the case.
The Debtor tapped Charles A. Cuprill, Esq., at Charles A. Cuprill,
PSC Law Offices as legal counsel; Ramon Luis Nieves, Esq., at RL
Legal Consulting Services, LLC as special counsel; Dage Consulting
CPAS, PSC as financial advisor; and De Angel & Compania, CPA, LLC
as auditor.
The U.S. Trustee for Region 21 appointed an official committee of
unsecured creditors on Sept. 12, 2022. MRO Attorneys at Law, LLC
and Dage Consulting CPAS, PSC serve as the committee's legal
counsel and financial advisor, respectively.
EVERYTHING BLOCKCHAIN: Delays Filing of Oct. 31 Quarterly Report
----------------------------------------------------------------
Everything Blockchain, Inc. filed a Form 12b-25 with the Securities
and Exchange Commission notifying the delay in the filing of its
Quarterly Report on Form 10-Q for the period ended Oct. 31, 2022.
The Company said it has been unable to complete its Form 10-Q for
the quarter ended Oct. 31, 2022, within the prescribed time because
of delays in completing the review by its auditor. Such delays are
primarily due to the timing of the Company receiving and reviewing
documentation on various transactions that occurred at the end of
the quarter. The Company expects to file its Form 10-Q within the
extension period of five calendar days provided under Rule 12b-25
of the Securities Exchange Act of 1934, as amended.
About Everything Blockchain
Headquartered in Fleming Island, Florida, Everything Blockchain,
Inc. (fka OBITX, Inc.) is a developer, engineer, and consultant in
the industry of blockchain technologies.
Mitzpe Netofa, Israel-based Elkana Amitai CPA, the Company's
auditor since 2022, issued a "going concern" qualification in its
report dated May 10, 2022, citing that the Company suffered losses
from operations in all years since inception, except for the year
ended Jan. 31, 2022. These and other factors raise substantial
doubt about the Company's ability to continue as a going concern.
FLAVORWORKS INC: Taps Law Offices of Avrum J. Rosen as Counsel
--------------------------------------------------------------
Flavorworks Inc. seeks approval from the U.S. Bankruptcy Court for
the Southern District of New York to hire The Law Offices of Avrum
J. Rosen, PLLC as its legal counsel.
The firm's services include:
(a) advising the Debtor of its rights and duties;
(b) overseeing the preparation of necessary reports to the
court or creditors;
(c) conducting all appropriate investigation or litigation;
and
(d) other necessary services in aid of the administration of
the Debtor's estate.
The firm will be paid at these rates:
Partners $620 hour
Associates $325 to $525 per hour
Paraprofessional $100 to $150 per hour
As disclosed in court filings, The Law Offices of Avrum J. Rosen is
disinterested within the meaning of Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Avrum J. Rosen, Esq.
The Law Offices of Avrum J. Rosen, PLLC
38 New Street
Huntington, NY 11743
Telephone: (631) 423-8527
Email: arosen@ajrlawny.com
About Flavorworks Inc.
Flavorworks Inc. is a New York-based company, which operates a food
manufacturing business.
Flavorworks filed a petition for relief under Subchapter V of
Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Case No.
22-11524) on Nov. 17, 2022, with between $1 million and $10 million
in both assets and liabilities. Eric Huebscher has been appointed
as Subchapter V trustee.
Judge Philip Bentley oversees the case.
The Debtor is represented by Avrum J. Rosen, Esq., at the Law
Offices of Avrum J. Rosen, PLLC.
FLORIDA INTERNATIONAL: U.S. Trustee Unable to Appoint Committee
---------------------------------------------------------------
The U.S. Trustee for Region 21, until further notice, will not
appoint an official committee of unsecured creditors in the Chapter
11 case of Florida International Associates, Inc., WY, according to
court dockets.
About Florida International Associates
Florida International Associates, Inc., WY sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. N.D. Fla. Case No.
22-10165) on Oct. 16, 2022, with up to $500,000 in both assets and
liabilities. Judge Karen K. Specie oversees the case.
Allen P. Turnage, Esq., is the Debtor's legal counsel.
FM SOLUTIONS: FM Unsecureds to Split $10K via Quarterly Payments
----------------------------------------------------------------
FM Solutions Management, LLC and Curtis and Vickie Slife filed with
the U.S. Bankruptcy Court for the District of Arizona a Joint Plan
of Reorganization for Small Business under Subchapter V dated
December 13, 2022.
Curtis Slife ("Curtis") is the owner of FM Solutions Management,
LLC ("FM Solutions"). Vickie Slife is the wife of Curtis and an
employee of FM Solutions ("Vickie"). FM Solutions is a small
business that provides Architectural, Design, and Project
Management services to multiple municipalities and utilities in
Arizona (Curtis, Vickie and FM Solutions are collectively the
"Debtors").
In 2020, FM Solutions was shut down due to the COVID pandemic.
After the pandemic, many of FM Solutions' clients did not return to
their offices and still have their employees working remotely.
During this time, FM Solutions obtained funding by various hard
money lenders because it thought the pandemic was a temporary
situation and the workload would return quickly to normal.
In mid-August one of FM Solutions' lenders, Funding Metrics d/b/a
Lendini, served a collateral demand against one of FM Solutions'
receivables from a major client. FM Solutions was then unable to
make payments to vendors or make payroll. Further, Lendini
commenced an out-of-state arbitration proceeding against FM
Solutions and Curtis, individually.
At that point, FM Solutions, and then Curtis and Vickie sought the
advice of counsel and each decided to file bankruptcy to
restructure their financial obligations, and streamline FM
Solutions so that it could remain a viable company and survive in
the marketplace.
This Plan of Reorganization proposes to pay creditors of FM
Solutions and the Slifes from cash flow from their operations of
future income.
The Plan provides for full payment of administrative and priority
claims over the life of the Plan, prior to any payments to general
unsecured creditors. Non-priority, unsecured creditors holding
allowed claims will receive distributions, after administrative and
priority creditors have been paid in full.
Class F3 consists of Non-priority unsecured claims against FM
Solutions. The creditors with allowed unsecured claims in Class F3
shall be paid in quarterly installments their pro rata share of
funds paid into the Plan Fund after all administrative and priority
claims are paid in full, and concurrently with payments to secured
creditors, their pro-rata share of $10,000. This Class is
impaired.
Class F4 consists of FM Solutions Equity. FM Solutions shall retain
all assets not distributed to creditors pursuant to the Plan, and
such assets shall be revested in FM Solutions upon confirmation of
the Plan, if the Plan confirmation is consensual, or upon closing
of the case, if the Plan confirmation is nonconsensual. The equity
interests in FM Solutions shall retain their ownership but shall
not receive an equity distribution on account of their equity
interests until after all claims are paid according to the terms of
the Plan.
Class S3 consists of Non-priority unsecured claims against Curtis
and Vickie Slife. The creditors with allowed unsecured claims in
Class 3 shall be paid in quarterly installments their pro rata
share of funds paid into the Plan Fund after all administrative,
and priority claims are paid in full, and concurrently with
payments to secured creditors, their prorata share of $5,000.00.
This Class is impaired.
Curtis and Vickie shall retain all assets not distributed to
creditors pursuant to the Plan, and such assets shall be revested
in Curtis and Vickie upon confirmation of the Plan, if the Plan
confirmation is consensual, or upon closing of the case, if the
Plan confirmation is non-consensual.
The Debtors shall each establish a separate Plan Fund for the
management of all funds for distribution to creditors and claimants
under the terms of the Plan. The Plan Fund will be administered by
the Debtors, unless otherwise directed by the Court. The Debtors
shall make deposits into the Plan Fund monthly (no later than the
10th day of each month), following Plan confirmation for the
payment of creditors' claims that are being treated under the
Plan.
In the event either of the Debtors' income in any month is
insufficient to make the payment, that Debtor shall contribute the
Debtor's actual disposable income for that month. Distributions
from the Plan Fund shall be made no later than the 20th day
following the deposits by the Debtor, through the termination of
the Plan.
A full-text copy of the Plan of Reorganization dated December 13,
2022, is available at https://bit.ly/3HPyySc from PacerMonitor.com
at no charge.
About FM Solutions Management, LLC
FM Solutions Management, LLC is a small business that provides
Architectural, Design, and Project Management services to multiple
municipalities and utilities in Arizona. FM Solutions provides
services that take an "owner's view" of facility needs. This
includes everything from mission critical facilities to space
planning and design of employee workspaces.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Ariz. Case No. 22-06152) on September
14, 2022. In the petition signed by Curtis Slife, manager, the
debtor disclosed up to $500,000 in assets and up to $1 million in
liabilities.
Judge Eddward P. Ballinger Jr. oversees the case.
D. Lamar Hawkins, Esq., at Guidant Law, PLC, is the Debtor's
counsel.
FREE SPEECH: Court OKs Interim Cash Collateral Access
-----------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas,
Victoria Division, authorized Free Speech Systems, LLC to use cash
collateral on an interim basis in accordance with the budget, with
a 10% variance.
The Court directed the Debtor to maintain debtor-in-possession
accounts at Axos Bank which accounts will contain all operating
revenues and any other source of cash constituting cash collateral,
which is (or has been) generated by and is attributable to the
Debtor's business.
Other than as provided for in the Budget, the Debtor will not make
any payment to or for the benefit of any insider of the Debtor,
either directly or indirectly, as that term is defined in section
101(31) of the Bankruptcy Code. In addition, no payments to any
insider during the Interim Period will exceed $10,000.
The Court's order provides that (i) the rights of creditors and
parties-in-interest to object to the appropriateness of
post-petition payments to PQPR for Inventory Purchases and file
pleadings with the Court seeking to claw back the PQPR Payment as
set forth in the First and Second Interim Cash Collateral Orders
are fully preserved by the Order and (ii) the Debtor will provide
notice to creditors and parties in interest upon the upon payment
in full of the $500,000 inventory purchase payment to PQPR
originally scheduled to be paid in the Second Interim Cash
Collateral Order and the time for objections to that payment will
expire 30 days following the date the notice of final payment is
filed with the Court.
The Debtor is permitted to instruct its credit card processor to
remit to Blue Ascension, LLC its fulfillment charges as set forth
in the Motion, from the daily settlement contemporaneously with the
distributions to FSS and PQPR.
The Debtor will report each Tuesday for the preceding calendar week
reflecting weekly sales and disbursement of the proceeds of those
sales. A copy of the report will be forwarded to the U.S. Trustee,
the Subchapter V Trustee, counsel for PQPR and Jarrod Martin as a
representative of the Connecticut and Texas plaintiffs.
A further hearing on the matter is set for January 20, 2023 at 11
a.m.
A copy of the order and the Debtor's budget is available at
https://bit.ly/3WgCPm5 from PacerMonitor.com.
The budget provides for total operating expenses, on a weekly
basis, as follows:
$470,110 for the week ending December 30, 2022;
$52,608 for the week ending January 6, 2023;
$196,300 for the week ending January 13, 2023; and
$19,700 for the week ending January 20, 2023.
About Free Speech Systems LLC
Free Speech Systems LLC is a broadcast media production and
distribution company that provides broadcasting aural programs by
radio to the public.
On July 29, 2022, Free Speech Systems LLC filed a voluntary
petition for relief under chapter 11 of the Bankruptcy Code (Bankr.
S.D. Tex. Case No. 22-60043). The Debtor has elected to proceed
under subchapter V of chapter 11.
In the petition filed by W. Marc Schwartz, as chief restructuring
officer, the Debtor estimated assets and liabilities between $50
million and $100 million.
Judge Christopher Lopez oversees the case.
Melissa A. Haselden has been appointed as Subchapter V trustee.
The Law Offices of Ray Battaglia, PLLC, is the Debtor's counsel.
FROZEN WHEELS: Seeks Cash Collateral Access
-------------------------------------------
Frozen Wheels, LLC asks the U.S. Bankruptcy Court for the Southern
District of Florica, Miami Division, for authority to use cash
collateral in accordance with the Budget.
The cash collateral is comprised of funds on deposit in the bank
and accounts receivable. As of the Petition Date, the Debtor had
$31.12 in its bank account and approximately $50,000 in
receivables, which may be collectible.
The Debtor will use the cash collateral to make payroll, make rent
payments, pay utilities, pay suppliers and vendors, and pay other
ordinary course expenses to maintain its business.
These creditors may claim an interest in the Debtor's cash
collateral:
a. 501 NE 183 LLC;
b. American Express;
c. Corporation Service Company;
d. Day to Day Imports, Inc.
e. Enrico Machado;
f. Enzek LLC;
g. IberiaBank;
h. NewCo Capital Group;
i. Servino Di Mariana; and
j. Sunshine Terminal 8 Corp.
The Debtor believes that beginning in January 2023 it will operate
on a positive cash flow basis during the interim six-month period
and asserts all interest in cash collateral will be adequately
protected by the increase in revenue to be generated by the
business operations. Additionally, the Debtor proposes to grant to
creditors, a replacement lien on the Debtor's postpetition cash
collateral to the same extent, priority, and validity as their
prepetition liens.
A copy of the motion is available at https://bit.ly/3v2zevY from
PacerMonitor.com.
About Frozen Wheels
Miami-based Frozen Wheels, LLC filed its voluntary petition for
Chapter 11 protection (Bankr. S.D. Fla. Case No. 22-18638) on Nov.
7, 2022, with up to $50,000 in assets and $10 million to $50
million in liabilities. Isaac Halwani, manager, signed the
petition.
Judge Robert A. Mark oversees the case.
Glenn D. Moses, Esq., at Genovese Joblove & Battista, P.A. serves
as the Debtor's legal counsel.
FTX GROUP: U.S. Prosecutor Considers SBF Vast Fraud Leader
----------------------------------------------------------
Bob Van Voris of Bloomberg News reports that FTX cryptocurrency
exchange founder Sam Bankman-Friedis responsible for "one of the
biggest financial frauds in American history" and the investigation
of the alleged scheme is "very much ongoing," Manhattan US Attorney
Damian Williams said Tuesday, December 13, 2022.
Mr. Bankman-Fried was charged with eight criminal counts, including
conspiracy and wire fraud for allegedly misusing billions of
dollars in customer funds to prop up his Alameda Research crypto
fund. Bankman-Fried was arrested Monday, December 12, 2022, in the
Bahamas, where he was living.
Charges Against SBF
Damian Williams, the United States Attorney for the Southern
District of New York, Merrick B. Garland, the United States
Attorney General, and Michael J. Driscoll, the Assistant Director
in Charge of the New York Field Office of the Federal Bureau of
Investigation, announced Dec. 13 the unsealing of an Indictment
charging SAMUEL BANKMAN-FRIED, a/k/a "SBF," with conspiracy to
commit wire fraud, wire fraud, conspiracy to commit commodities
fraud, conspiracy to commit securities fraud, conspiracy to commit
money laundering, and conspiracy to defraud the Federal Election
Commission and commit campaign finance violations. The charges in
the Indictment arise from an alleged wide-ranging scheme by the
defendant to misappropriate billions of dollars of customer funds
deposited with FTX, the international cryptocurrency exchange
founded by the defendant, and mislead investors and lenders to FTX
and to Alameda Research, the cryptocurrency hedge fund also founded
by the defendant.
U.S. Attorney Damian Williams said: "One month ago, FTX collapsed,
causing billions of dollars in losses to its customers, lenders,
and investors. Now, a federal grand jury in New York has indicted
the former founder and chief executive officer of FTX and charged
him with crimes related to the phenomenal downfall of that one-time
cryptocurrency exchange, including fraud on customers, investors,
lenders, and our campaign finance system. As today's charges make
clear, this was not a case of mismanagement or poor oversight, but
of intentional fraud, plain and simple."
Attorney General Merrick B. Garland said: "The Justice Department
has filed charges alleging that Samuel Bankman-Fried perpetrated a
range of offenses in a global scheme to deceive and defraud
customers and lenders of FTX and Alameda, the defendant's crypto
hedge fund, as well as a conspiracy to defraud the United States
government. We allege that the defendant conspired to defraud
customers by misappropriating their deposits; to defraud
lenders; to commit securities fraud and money laundering; and to
violate campaign finance laws. As this indictment demonstrates, the
U.S. Department of Justice will aggressively investigate and
prosecute alleged criminal wrongdoing in the financial system and
violations of federal elections laws. We will continue to work to
ensure U.S. capital markets operate honestly and with the integrity
that investors, lenders, and the American people are entitled to."
FBI Assistant Director Michael J. Driscoll said in the Dec. 13
announcement: "As the indictment today alleges, Bankman-Fried
knowingly defrauded the customers of FTX.com through the
misappropriation of the customer deposits to pay expenses and debts
of a different company he also owned as well as make other
investments. If you deceive and defraud your customers, the FBI
will be persistent in our efforts to bring you to justice."
As alleged in the Indictment unsealed in Manhattan federal court
and court filings:
* SAMUEL BANKMAN-FRIED was the founder and chief executive
officer of FTX, an international cryptocurrency exchange. Since
2019, the defendant and his co-conspirators perpetrated a scheme to
defraud customers of FTX by misappropriating billions of dollars of
those customers’ funds. As alleged, the defendant used billions
of dollars of FTX customer funds for his personal use, to make
investments and millions of dollars of political contributions to
federal political candidates and committees, and to repay billions
of dollars in loans owed by Alameda Research, a cryptocurrency
hedge fund also founded by the defendant. BANKMAN-FRIED also
allegedly defrauded lenders to Alameda Research and equity
investors in FTX by concealing his misuse of customer deposits in
financial information that was provided to them.
* SAMUEL BANKMAN-FRIED and his co-conspirators made millions of
dollars in political contributions funded by Alameda Research to
federal political candidates and committees in advance of the 2022
election. To conceal the fact that those contributions were paid
for using funds from a corporation and to evade contribution limits
and reporting requirements, BANKMAN-FRIED caused contributions to
be reported in the names of co-conspirators rather than in the name
of the true source of the funds.
* * *
SAMUEL BANKMAN-FRIED, 30, of Stanford, California, is charged with
two counts of wire fraud conspiracy, two counts of wire fraud, and
one count of conspiracy to commit money laundering, each of which
carries a maximum sentence of 20 years. He is also charged with
conspiracy to commit commodities fraud, conspiracy to commit
securities fraud, and conspiracy to defraud the United States and
commit campaign finance violations, each of which carries a maximum
sentence of five years.
The statutory maximum sentences are prescribed by Congress and are
provided here for informational purposes only, as any sentencing of
the defendant will be determined by a judge.
Mr. Williams praised the investigative work of the FBI. He also
expressed appreciation for the assistance of the Justice
Department’s Office of International Affairs, National
Cryptocurrency Enforcement Team, Public Integrity Section, and the
Drug Enforcement Administration, as well as that of the Securities
and Exchange Commission and the Commodity Futures Trading
Commission, both of which separately initiated civil proceedings
against the defendant today. Mr. Williams further thanked the
Bahamas Office of the Attorney-General & Ministry of Legal Affairs
as well as the Royal Bahamas Police Force for their assistance.
This case is being handled by the Office’s Securities and
Commodities Fraud Task Force. Assistant U.S. Attorneys Nicolas Roos
and Danielle Sassoon are in charge of the prosecution. The Money
Laundering and Transnational Criminal Enterprises Unit and
Assistant U.S. Attorneys Samuel Raymond and Thane Rehn also
contributed to the investigation.
The allegations in the Indictment are merely accusations, and the
defendant is presumed innocent unless and until proven guilty.
About FTX Group
FTX is the world's second-largest cryptocurrency firm. FTX is a
cryptocurrency exchange built by traders, for traders. FTX offers
innovative products including industry-first derivatives, options,
volatility products and leveraged tokens.
Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that
FTX paused customer withdrawals after it was hit with roughly $5
billion worth of withdrawal requests.
Faced with liquidity issues, FTX on Nov. 9 struck a deal to sell
itself to its giant rival Binance, but Binance walked away from the
deal the next day amid reports on FTX regarding mishandled customer
funds and alleged US agency investigations.
At 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.
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, SBF
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 and
Alexa J. Kranzley at Sullivan & Cromwell LLP in New York, serve as
the Debtors' counsel.
Adam G. Landis, Kimberly A. Brown and Matthew R. Pierce at LANDIS
RATH & COBB LLP in Wilmington serve as local bankruptcy counsel to
FTX Group.
Alvarez & Marsal North America, LLC, is the Debtors' financial
advisor.
Kroll is the claims agent, maintaining the page
https://cases.ra.kroll.com/FTX/Home-Index
Lawyers at Paul Weiss represented SBF but later renounced
representing the entrepreneur due to a conflict of interest.
GABHALTAIS TEAGHLAIGH: Bid to Use Cash Collateral Denied
--------------------------------------------------------
The U.S. Bankruptcy Court for the District of Massachusetts denied
the motion to use cash collateral filed by Gabhaltais Teaghlaigh,
LLC beyond the December 14, 2022 hearing, pending entry of a
further order after the supplementation of the motion as directed
by the order and a continued hearing on the supplemented motion.
A continued hearing on the motion is set for January 26, 2023 at
2:30 p.m. by telephone.
On or before January 12, the Debtor is directed to file all of the
missing supplements previously required to be filed, as may need to
be further supplemented. The Debtor will file the missing
reconciliations of budgeted amounts with actual cash receipts and
disbursements on a line item basis, a revised forward-looking
budget, and a proposed form of order regarding the continued use of
cash collateral beyond the January 26 continued hearing.
A copy of the order is available at https://bit.ly/3BKw9Ek from
PacerMonitor.com.
About Gabhaltais Teaghlaigh
Gabhaltais Teaghlaigh, LLC sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D. Mass. Case No. 22-10839) on
June 15, 2022. In the petition filed by Virginia Hung, as member,
Gabaltais Teaghlaigh LLC listed under $50,000 in both assets and
liabilities.
The case is assigned to Judge Christopher J. Panos.
David G. Baker, Esq., at Baker Law Offices is the Debtor's
counsel.
GAUCHO GROUP: Maria Echevarria to Remain as CFO
-----------------------------------------------
Gaucho Group Holdings, Inc. and Maria Echevarria, its chief
financial officer, entered into an employment agreement to continue
to serve as the Company's chief financial officer, effective Jan. 1
for a three-year term, subject to automatic renewal of successive
one-year periods, as disclosed in a Form 8-K filed with the
Securities and Exchange Commission.
Pursuant to the Employment Agreement, Ms. Echevarria will receive a
base salary of $230,000 for 2022; $250,000 for the second year; and
$275,000 for the third year, which may be increased or decreased
from time to time with the approval of the board of directors. In
addition, Ms. Echevarria is eligible for an annual cash and equity
bonus based on certain key performance indicators, as approved by
the board of directors, and she is entitled to participate in the
Company's 2018 Equity Incentive Plan, insurance, health,
retirement, and other benefit plans.
During her employment and for a period of one year thereafter, Ms.
Echevarria is prohibited from competing with the Company within its
geographic area and, for one year following the last day of her
employment, from soliciting the Company's customers and the
Company's employees for a competing business.
The Employment Agreement includes a "clawback" provision in which
Ms. Echevarria agrees that the Company can recoup any compensation
or benefits provided to her that are required by applicable law to
be subject to recovery or recoupment.
Further, the Employment Agreement contains certain rights of Ms.
Echevarria and the Company to terminate Ms. Echevarria's
employment, including a termination by the Company for "Cause" as
defined in the Employment Agreement. The Employment Agreement also
specifies certain compensation due following termination of
employment, including severance payments to Ms. Echevarria if she
is terminated "Without Cause" or resigns for "Good Reason" as set
forth in the Employment Agreement, in which case she is entitled,
following termination, to 12 months of her current base salary,
provisions for an annual bonus that Ms. Echevarria would have
earned had no termination occurred, and reimbursement for health
insurance premiums for 12 months.
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.
GISSING NORTH AMERICA: Wins Cash Collateral Access, DIP Loan
------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Michigan,
Southern Division, authorized Gissing North America LLC and its
debtor-affiliates to use cash collateral in accordance with the
Fourth Amendment to Debtor in Possession Credit Agreement and the
Amended Budget, on a final basis, through December 27, 2022.
As previously reported by the Troubled Company Reporter, a
consortium of lenders has committed to provide postpetition
financing, consisting of a revolving loan and the sum of advances
on the DIP loan plus advances outstanding on the prepetition
revolver that will not exceed $30 million, in the aggregate.
Prior to entry of a Final Order, the DIP Lenders agreed to provide
up to $8.8 million of interim financing.
The salient terms of the DIP Credit Facility include:
a. The DIP Loan will mature on the earlier of (i) October 31,
2022 and (ii) the occurrence of a Termination Event, which
includes: (i) any of the Cases are either dismissed or converted to
a case under chapter 7 of the Bankruptcy Code or if venue of any of
the Cases is transferred to another district; (ii) a trustee or an
examiner with expanded powers is appointed in any of the Cases;
(iii) any plan(s) of reorganization of the Debtors is filed entered
an order confirming, a plan of reorganization, which plan is not in
form and substance acceptable to the DIP Lenders or the Prepetition
Lenders; (xii) the milestones related to the proposed sale of the
Debtors' assets will not have been met within the period specified
therefor, as the same may be extended in the sole discretion of the
Lenders; or (xiii) the termination of the Term of the Accommodation
Agreement.
b. As adequate protection to the prepetition lenders, the
Debtors will continue to pay accrued interest on the prepetition
loans monthly, as well as continued monthly principal payments on
the prepetition term loans. The prepetition lenders will also
receive replacement liens on all assets of the Debtors (e.g., newly
generated accounts and newly acquired inventory), which will be
junior to the liens securing the DIP loan and a section 507(b)
priority claim. As adequate protection to Tesla, Inc., Tesla will
also receive replacement liens and a section 507(b) priority claim
which will be junior to the prepetition lenders' replacement liens
and 507(b) claim. Tesla has agreed to this form of adequate
protection.
c. A $300,000 commitment fee (1% of commitment amount) deemed
fully earned and nonrefundable on receipt.
The court said the Agent is authorized to transfer (A) $1.734 to
the Wolfson Bolton PLLC Trust Account (i) to satisfy such fees and
expenses of the professionals retained by the Debtors as may be
thereafter allowed pursuant to an order of the Court and (ii) the
fees required to be paid to the Clerk of the Court and the Office
of the U.S. Trustee pursuant to 28 U.S.C. section 1930 for the
period up to December 27, 2022, and (B) $459,036 to the Foley &
Lardner LLP Trust Account to satisfy the such fees and expenses of
professionals retained by the Committee as may be hereafter allowed
pursuant to an order of the Court.
A copy of the order is available at https://bit.ly/3V3CbXC from
Epiq, the claims and noticing agent.
About Gissing North America
Gissing North America LLC, f/k/a Conform Gissing International,
LLC, and its affiliates are innovative and technology-driven
suppliers of acoustic systems and weight reduction solutions for
the automotive industry. They provide customers products that
minimize noise, vibration, and harshness throughout a vehicle and
reduce vehicle weight by using proprietary technology.
On Aug. 8, 2022, Gissing North America LLC and its affiliates
sought Chapter 11 protection (Bankr. E.D. Mich. Lead Case No.
22-46160).
Gissing North America reported assets of $50 million to $100
million and liabilities of $50 million to $100 million as of the
bankruptcy filing.
Judge Lisa S. Gretchko oversees the case.
The Debtors tapped Wolfson Bolton PLLC as bankruptcy counsel.
Riveron Management Services' Steven R. Wybo is serving as CRO of
the Debtors. Investment banking firm Livingstone Partners LLC was
retained to advise on a potential sale.
GREGORY TE VELDE: U.S. Farm Settlement Agreement Denied
-------------------------------------------------------
In the adversary case styled as In re Gregory John te Velde,
Debtor. Randy Sugarman, Trustee, Chapter 11, Trustee, v. IRZ
CONSULTING, LLC; aka IRZ Construction Division, LLC, Defendant. IRZ
Consulting, LLC, aka IRZ Construction Division, LLC, Third-Party
Trustee, v. U.S. Farm Systems; 4 Creeks, Inc.; John Fazio dba Fazio
Engineering; Dari-Tech, Inc.; Laser Land Leveling, Inc.; MAAS
Energy Works, Inc.; George Chadwich dba George Chadwick Consulting;
Valmont Nurthwest, Inc.; and NUCO Building Systems Utah LLC,
Third-Party Defendants, Case No. 18-11651-B-11, Adv. Proc. No.
19-01033, (Bankr. E.D. Cal.), Bankruptcy Judge Rene Lastreto, II
for the Eastern District of California recommends denial of U.S.
Farm Systems' motion for an order (a) establishing that U.S. Farm
settled the adversary proceeding in good faith with chapter 11
liquidating trustee Randy Sugarman, and (b) barring
cross-complaints against U.S. Farm.
This case derives from the chapter 11 bankruptcy of Gregory John te
Velde. Before filing, the Debtor owned and operated several large
dairies across the Western United States. In late-2015, the Debtor
hired IRZ to provide construction management services for the
construction of a new dairy operation in Boardman, Oregon
colloquially referred to as Lost Valley Farm. IRZ, in turn, hired
subcontractors to perform certain services.
U.S. Farm was hired by the Debtor directly to install a mechanical
separator, which was part of a waste disposal system. The Debtor's
intention was to build a waste disposal system at the Lost Valley
Farm dairy that would separate solids from usable effluent. The
final filtered effluent was to be used to irrigate adjacent land.
However, the operation failed resulting in an environmental
catastrophe, which ultimately became a substantial factor in the
Debtor's filing of a chapter 11 bankruptcy case in 2018.
After Debtor filed chapter 11 bankruptcy, Randy Sugarman was
appointed as trustee. He proposed and confirmed a Plan of
Reorganization in November 2019.
U.S. Farm filed two proofs of claim, each in the amount of
$187,560, to recover the amounts owed for the services it performed
with respect to Lost Valley Farm. Under the Plan, The Trustee has
authority to settle litigation related to claims without notice and
without bankruptcy court approval.
The Trustee filed this adversary proceeding in 2019 objecting to
the claim filed by IRZ and asserting claims raising alleged
construction defects in the waste system, which resulted in
approximately $19 million in damages. IRZ subsequently filed a
third-party complaint against nine third-party defendants,
including U.S. Farm, asserting claims for contribution, indemnity,
and negligence.
Recently, U.S. Farm entered into a Settlement Agreement and Release
of Claims with the Trustee on or about Sept. 14, 2022. Under the
terms of the Settlement Agreement, U.S. Farm will pay $20,000 to
settle any and all claims by the Trustee, inclusive of all
derivative claims by IRZ. The Settlement Agreement states that
"U.S. Farm's Claim 74 shall be deemed to be an Allowed General
Unsecured Claim in the original amount of $187,560 and U.S. Farm
shall be entitled to receive any further pro rata dividends payable
to other general unsecured creditors."
Since all of IRZ's claims against U.S. Farm are derivative of the
Trustee's claims against IRZ, U.S. Farm requests to be dismissed
from this lawsuit.
First, U.S. Farm contends that the Settlement Agreement with the
Trustee meets the requirements of a "good faith" settlement, which
will bar any cross-complaints against U.S. Farm. Second, U.S. Farm
argues that IRZ Consulting, LLC was given fair notice of the
settlement but indicated that they wanted a global settlement
before any third-party defendants would be released. Lastly, U.S.
Farm insists that it must be dismissed from this adversary
proceeding as to all of the third-party claims asserted by IRZ
because they are derivative of the Trustee's claims against IRZ.
In response, IRZ argues that this motion should be denied because
the Settlement Agreement between Trustee and U.S. Farm was not in
good faith under the standards set forth under California law as
evidenced by the proportionately low amount U.S. Farm is to pay
under the Settlement Agreement.
U.S. Farm reasons that if the case were to proceed to trial,
damages were $18 million, and it were found 1% liable, it would be
responsible for $180,000 in damages. But since it is settling the
claim for $20,000, if it were found to be 1% liable, it must only
pay $20,000 under the Settlement Agreement. A more likely outcome,
says U.S. Farm, is that it will be found 0% liable and would owe
$0, but it is willing to pay this settlement amount regardless of
the eventual outcome.
IRZ responds that U.S. Farm is settling for one-tenth of a percent
(0.001%) of the Trustee's claimed $18.8 million dollars in damages.
If U.S. Farm were determined to be 1% liable by a jury, it would be
avoiding at least $160,000 in damages, or eight times the $20,000
provided in the Settlement Agreement. Rough approximation of the
Trustee's total recovery and the settlor's proportionate liability
-- not within the reasonable range or "ballpark" of their share of
proportionate liability.
The Court finds lack of evidence as to what the Trustee's total
recovery may be and U.S. Farm's proportionate share of liability.
The allegations are that nearly $19 million is the alleged damage.
But there is no basis, even from the Trustee, that is evidence of
possible recovery. So, the Court is unable to adequately evaluate
proportionate liability.
The Court further finds the record does not support a good faith
finding as a matter of law. Though Trustee attributes the
waste-water management problems at Lost Valley Farm dairy to
defects in the waste management stream before and after it was
processed by U.S. Farm's mechanical separator, the Court considers
this diagnosis as speculative because the Trustee is not an expert.
And although U.S. Farm has produced the declaration of David
Shoenhair -- manager employed by U.S. Farm that was substantially
in charge of installing the mechanical separator at Debtor's dairy
-- the Court finds his declaration unpersuasive because he is an
employee of U.S. Farm. U.S. Farm has not produced substantial
evidence that there was no fault with its mechanical separator.
Further, by settling with the Trustee, the Court finds and
concludes that U.S. Farm is effectively removing itself as a
third-party defendant from IRZ's third-party complaint without
IRZ's consent. Since the settlement represents a one-tenth of one
percent (0.001%) share of the $18.8 million in liability alleged by
the Trustee, this proportionately de minimis share does not suggest
that the Trustee and U.S. Farm executed the Settlement Agreement in
good faith.
A full-text copy of the Report and Recommendation dated Dec. 6,
2022, is available at https://tinyurl.com/9syc9va4 from
Leagle.com.
About Gregory John te Velde
Tipton, California-based Gregory John te Velde filed for Chapter 11
bankruptcy (Bankr. E.D. Cal. Case No. 18-11651) on April 26, 2018.
In his Chapter 11 petition, the Debtor estimated both assets and
liabilities between $100 million and $500 million. Mr. te Velde
does business as GJ te Velde Dairy, Pacific Rim Dairy and Lost
Valley Farm. He formerly did business as Willow Creek Dairy.
Judge Fredrick E. Clement oversees the bankruptcy case.
Mr. te Velde is represented by Riley C. Walter, Esq., who has an
office in Fresno, California.
GROM SOCIAL: CVI Investments, Heights Capital Hold 8% Equity Stake
------------------------------------------------------------------
CVI Investments, Inc. and Heights Capital Management, Inc.
disclosed in a Schedule 13G filed with the Securities and Exchange
Commission that as of Dec. 9, 2022, they beneficially own 174,000
shares of common stock of Grom Social Enterprises, Inc.,
representing 8 percent of the shares outstanding. The Company's
Prospectus filed on Dec. 12, 2022, indicates there were 2,175,079
Shares outstanding (excluding Shares underlying warrants issued at
the same time) as of the completion of the offering of the Shares.
A full-text copy of the regulatory filing is available for free
at:
https://www.sec.gov/Archives/edgar/data/1649553/000110465922127634/tm2232799d1_sc13g.htm
About Grom Social
Boca Raton, Florida-based Grom Social Enterprises, Inc. --
www.gromsocial.com -- is a media, technology and entertainment
company focused on delivering content to children under the age of
13 years in a safe secure Children's Online Privacy Protection Act
("COPPA") compliant platform that can be monitored by parents or
guardians.
Grom Social reported a net loss of $10.22 million for the year
ended Dec. 31, 2021, a net loss of $5.74 million for the year
ended
Dec. 31, 2020, and a net loss of $4.59 million for the year ended
Dec. 31, 2019. As of Sept. 30, 2022, the Company had $33.10
million in total assets, $9.11 million in total liabilities, and
$23.99 million in total stockholders' equity.
GROM SOCIAL: Lind Global Reports 9.9% Stake as of Dec. 9
--------------------------------------------------------
Lind Global Fund II LP, Lind Global Partners II LLC, and Jeff
Easton disclosed in a Schedule 13G filed with the Securities and
Exchange Commission that as of Dec. 9, 2022, they beneficially own
249,162 shares of common stock of Grom Social Enterprises, Inc.,
representing 9.9% of the shares outstanding.
The Reporting Persons' ownership consists of (i) 224,162 common
shares and (ii) 813,898 Warrants; however, due to the exercise
limitations of the Warrants, the reporting persons' beneficial
ownership of 788,898 Warrants is excluded.
Lind Global Partners II LLC, the general partner of Lind Global
Fund II LP, may be deemed to have sole voting and dispositive power
with respect to the shares held by Lind Global Fund II LP.
Jeff Easton, the managing member of Lind Global Partners II LLC,
may be deemed to have sole voting and dispositive power with
respect to the shares held by Lind Global Fund II LP.
A full-text copy of the regulatory filing is available for free
at:
https://www.sec.gov/Archives/edgar/data/1662574/000092963822001841/sc13g.htm
About Grom Social
Boca Raton, Florida-based Grom Social Enterprises, Inc. --
www.gromsocial.com -- is a media, technology and entertainment
company focused on delivering content to children under the age of
13 years in a safe secure Children's Online Privacy Protection Act
("COPPA") compliant platform that can be monitored by parents or
guardians.
Grom Social reported a net loss of $10.22 million for the year
ended Dec. 31, 2021, a net loss of $5.74 million for the year ended
Dec. 31, 2020, and a net loss of $4.59 million for the year ended
Dec. 31, 2019. As of Sept. 30, 2022, the Company had $33.10
million in total assets, $9.11 million in total liabilities, and
$23.99 million in total stockholders' equity.
HOOK FISH: To File Plan and Disclosure on Feb. 28
-------------------------------------------------
Judge Erik P. Kimball has entered an order that Hook, Fish and
Chicken Express, LLC will file a Plan and Disclosure Statement on
or before February 28, 2023.
The Disclosure Statement must meet the requirements of 11 U.S.C. s
1125. Without limiting the generality of the foregoing, the
Disclosure Statement shall, at a minimum, contain adequate
information pertaining to the Debtor(s) in the following areas:
(a) Pre- and post-petition financial performance;
(b) Reasons for filing chapter 11;
(c) Steps taken since filing of the petition to facilitate
reorganization;
(d) Projections reflecting how the Plan will be feasibly
consummated; and
(e) A liquidation analysis.
If the Plan provides for an injunction against conduct not
otherwise enjoined under the Bankruptcy Code, a release of
non-debtor parties, or a similar provision, concurrently with the
filing of the proposed Disclosure Statement and Plan the Debtor(s)
shall file a Notice of Filing of Proposed Text Required by
Bankruptcy Rule 2002(c)(3) for Inclusion in Order Conditionally
Approving Disclosure Statement, setting forth text the Debtor(s)
wishes the Court to include in any order conditionally approving
the Disclosure Statement.
Pursuant to 11 U.S.C. s 105(d)(2)(B)(vi), unless the Court directs
otherwise, the hearing on final approval of the Disclosure
Statement shall be consolidated with the hearing on confirmation of
the Plan (the "Consolidated Hearing"), which hearing shall be set
by further order of this Court if the Disclosure Statement is
conditionally approved.
About Hook, Fish and Chicken Express
Hook, Fish and Chicken Express, LLC, sought protection for relief
under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No.
22-18419) on Oct. 31. 2022, with up to $1 million in both assets
and liabilities. Judge Erik P. Kimball oversees the case.
Brian K. McMahon, Esq., at Brian K. McMahon, PA serves as the
Debtor's counsel.
INFINITE SYNERGY: Court OKs Cash Collateral Access
--------------------------------------------------
The U.S. Bankruptcy Court for the District of Oregon authorized
Infinite Synergy Insurance Agency, LLC, to use cash collateral on
an interim basis.
The Debtor requires the use of cash collateral in order to continue
ordinary course business operations, and avoid immediate and
irreparable harm to his bankruptcy estate.
The Debtor's use of cash collateral is conditioned on using not
more than $450 for certain expenses as outlined in the Motion prior
to the Final Cash Collateral hearing scheduled for December 30,
2022 at 9:30 a.m.
Prior to the commencement of this case, the Debtor entered into a
secured Note agreement with Velocity Commercial Capital, LLC on May
31, 2019, to assist with purchase of a property located at 16015 SE
Oatfield Road, Milwaukie, OR 97267. The Note was secured to the
Property by a deed of trust in favor of the holder. The beneficial
interest in the Note and Deed of Trust was subsequently sold to US
Bank, N.A. as Indenture Trustee for VCC 2020-MC1 Trust -- as
Creditor -- on July 28, 2022. The Note and Deed of Trust contained
a commercial security agreement covering rents from the Property.
As adequate protection, the creditor will be granted a replacement
lien, pursuant to 11 U.S.C. section 361(2), in the Post-petition
Collateral of the Estate of the kind which presently secures the
indebtedness owed to Creditor.
A copy of the order is available at https://bit.ly/3G9xZBA from
PacerMonitor.com.
About Infinite Synergy Insurance Agency, LLC
Infinite Synergy Insurance Agency, LLC is the fee simple owner of a
property located at 6015 SE Oatfield Rd. in Milwaukie, Ore., having
a comparable sale value of $975,000.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Ore. Case No. 22-31983) on November 29,
2022. In the petition signed by Desiree Magcalas, member, the
Debtor disclosed $1,038,510 in assets and $688,881 in liabilities.
Judge Teresa H. Pearson oversees the case.
Theodore J. Piteo, Esq., at Michael D. O'Brien and Associates,
P.C., is the Debtor's counsel.
INN S.F. ENTERPRISE: Unsecureds to Get 6-8 Cents on Dollar in Plan
------------------------------------------------------------------
Inn S.F. Enterprise, Inc. filed with the U.S. Bankruptcy Court for
the Northern District of California a Plan of Reorganization for
Small Business dated December 13, 2022.
The Debtor is a subchapter S corporation that operates a 21-room
bed and breakfast located at 937 and 943 South Van Ness Avenue San
Francisco, California.
The Debtor's bankruptcy filing was precipitated primarily by the
pandemic when annual revenues dropped by 80% in 2020 and 45% in
2021 compared with pre-pandemic levels. In addition, one of the
Debtor's former principals and co-owner, Connie Wu, suffered a
severe decline in mental capacity and was ordered into
conservatorship by the California Superior Court, San Mateo
Division on September 9, 2022.
The Superior Court determined that Ms. Wu was susceptible to undue
influence and global cyber fraud. The Court also suspended Ms. Wu
from any ownership and involvement in the Debtor's operation. Prior
to her conservatorship, Ms. Wu procured loans from predatory
lenders on behalf of the Debtor to funnel money to online scammers,
without the consent or knowledge of her co-owner, Martin A. Neely.
The resulting crushing debt load (approximating $17,000/week)
arising from Ms. Wu's irrational actions also contributed to the
decision to file this bankruptcy case.
The Debtor's financial projections show that it will have
disposable income of approximately $350,665.96. The Plan payments
to allowed administrative, Class 2A and Class 3 claims total
$350,500.00. The final Plan payment is expected to be paid on April
1, 2026.
This Plan of Reorganization proposes to pay creditors of the Debtor
cash flow from the operation of the Debtor's bed and breakfast
establishment.
Non-priority unsecured creditors holding allowed claims will
receive distributions, which the proponent of this Plan has valued
at approximately 6-8 cents on the dollar. This Plan also provides
for the payment of administrative and priority claims.
Class 3 consists of Non-priority unsecured creditors. Each holder
of an unsecured claim will receive a pro rata share of its allowed
claim, in cash, payable in 12 quarterly installments over 3 years
as follows: $7,500.00 per quarter commencing on July 1, 2023 and
continuing through April 1, 2024; $19,500.00 per quarter commencing
on July 1, 2024 and concluding with the quarterly payment due on
April 1, 2026.
Class 4 consists of Equity security holders of the Debtor.
Shareholders shall retain their respective interests in the
Debtor.
On the effective date, all assets of the estate shall be revested
in the reorganized Debtor to make all distributions required to be
paid to allowed claims under the terms of the plan and
administrative expenses. The reorganized Debtor shall continue in
operation as a bed and breakfast and shall make plan payments from
disposable income generated by revenue from guest room receipts.
A full-text copy of the Plan of Reorganization dated December 13,
2022, is available at https://bit.ly/3jjPt5h from PacerMonitor.com
at no charge.
Debtor's Counsel:
Sarah M. Stuppi, Esq.
Law Offices of Stuppi & Stuppi
1630 North Main Street, Suite 332
Walnut Creek, CA 94596
Tel: (415) 786-4365
Fax: (925) 287-8113
Email: Sarah@stuppilaw.com
About Inn S.F. Enterprise
Inn S.F. Enterprise, Inc., a company in San Francisco, Calif, filed
its voluntary petition for Chapter 11 protection (Bankr. N.D.
Calif. Case No. 22-30477) on Sept. 14, 2022, with up to $500,000 in
assets and up to $10 million in liabilities. Martin A. Neely,
president of Inn S.F. Enterprise, signed the petition.
Judge Dennis Montali oversees the case.
Sarah M. Stuppi, Esq., at the Law Offices of Stuppi & Stuppi serves
as the Debtor's legal counsel.
J AND M SUPPLY: Bid for Turnover to Satisfy Judgment Debt Denied
----------------------------------------------------------------
Bankruptcy Judge David M. Warren for the Eastern District of North
Carolina denies the Turnover Motion filed by the Debtor J and M
Supply of the Carolinas, LLC.
In the Turnover Motion, the Debtor requests the Court to enter an
order requiring GFE NY, LLC and JPMorgan Chase Bank, N.A. "to
turnover [sic] all assets, property, and other interests, wherever
located, that is [sic] titled in the name of the judgment debtor,
owned by the judgment debtor, and/or held on behalf of the judgment
debtor" to be applied toward satisfaction of the Default Judgment
pursuant to Section 542(b), or alternatively, pursuant to N.C. Gen.
Stat. Section 1-362.
In its Response, GFE asserts that the Debtor's request exceeds the
scope of Section 542(b) and is an attempt to sidestep the normal
procedures for enforcing and executing on a monetary judgment.
The Debtor filed a voluntary petition for relief under Chapter 11,
Subchapter V of the Bankruptcy Code on March 11, 2022 and is a
debtor-in-possession. Also on same date, the Debtor initiated
Adversary Proceeding Number 22-00040-5-DMW against GFE, (1) seeking
a declaratory judgment that two Merchant Agreements between the
Debtor and GFE were loans with usurious interest rates and void
under New York law; and (2) seeking avoidance and recovery of
payments from the Debtor to GFE made under the Merchant Agreements
totaling $77,995. GFE did not timely answer or otherwise respond to
the Complaint. On May 2, 2022, the Court entered a Default Judgment
which provides, inter alia, that the Debtor "shall recover $77,995
from GFE under 11 U.S.C. Section 550(a)(1)."
On June 13, 2022, the clerk issued a Writ of Execution which
directed the U.S. Marshals Service to levy upon property of GFE to
satisfy the Default Judgment. The Debtor reports that the USMS
seized a bank account maintained by GFE at JPMorgan Chase Bank,
N.A., but no funds have been recovered and paid toward the Default
Judgment. Hence, the Debtor files the instant Turnover Motion.
The Court points out that a threshold requirement of section 542(b)
is that the debt be property of the estate. The Debtor contends,
and GFE concedes, that the Default Judgment is property of the
estate pursuant to section 541(a)(3), which includes as property of
the estate any interest in property that the trustee recovers under
section 550.
GFE disputes, however, that any of its assets are property of the
estate that are subject to turnover under section 542(b). The Court
agrees and finds that section 542(b) provides the Debtor only the
right to demand that GFE pay the amount due under the Default
Judgment.
The Court believes the nature of the post-petition debt does not
align with the purpose of section 542(b). At the commencement of
its case, the Debtor had no right to demand payment from GFE under
section 542(b) and appropriately initiated the Avoidance Adversary
Proceeding to avoid and recover alleged fraudulent transfers of
money. Rather than complete execution proceedings on the resulting
Default Judgment, the Debtor is now seeking a presumably
contemptible turnover order directing GFE to promptly satisfy the
Default Judgment. At the hearing, the Debtor's counsel reasoned
that seeking this order by motion was appropriate, because it would
be "counterintuitive" to use an adversary proceeding to collect on
an adversary proceeding.
The Court reasons that if the Debtor initiates an adversary
proceeding against GFE to enforce payment of the amount owed under
the Default Judgment, then it could obtain no more than what it
already has -- a monetary judgment. In this respect, the Debtor is
correct that initiating an adversary proceeding is
counterintuitive, and the Court believes that doing so is
unnecessary and futile, because the Debtor already possesses a
judgment against GFE. Accordingly, the Court will not enter a
turnover order that will bypass standard execution procedures on
the Default Judgment.
In addition, the Debtor made no showing that the Writ of Execution
has been returned as unsatisfied, and the USMS' seizure of a GFE
account with Chase suggests that the execution proceeding is
pending and incomplete. Should the execution be later returned
unsatisfied, then the Debtor may file a motion in the Avoidance
Adversary Proceeding for the Court to utilize N.C. Gen. Stat.
section 1-362 to order that available property held by GFE, Chase,
or another third party be surrendered or sold to satisfy the
Default Judgment. The Court denies the Debtor's current request for
supplemental relief for being not only misplaced but premature.
A full-text copy of the Order dated Dec. 8, 2022, is available at
https://tinyurl.com/2m3y3j28 from Leagle.com.
About J and M Supply
J and M Supply of the Carolinas, LLC operates a sporting goods
retail store in Leland, N.C. It is a licensed Federal Firearms
dealer and specializes in the sale of firearms, ammunition and
related equipment. The company also provides firearm and first aid
training classes and is a North Carolina certified firearms
instructor.
J and M filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. E.D.N.C. Case No. 22-00536) on March 11,
2022, listing as much as $500,000 in both assets and liabilities.
Jennifer Bennington serves as the Subchapter V trustee.
Judge David M. Warren oversees the case.
Richard P. Cook, Esq., at Richard P. Cook, PLLC is the Debtor's
legal counsel.
KENNETH J. TAGGART: Appellees Bid to Dismiss Appeals Granted
------------------------------------------------------------
In the appealed cases styled as Kenneth J. Taggart,
Movant/Appellant, v. AJX Mortgage Trust I, a Delaware Trust,
Wilmington Savings Fund Society, FSB, Gregory Funding, LLC, Great
Ajax Operating Partnership, LP, Respondents/Appellees, Case Nos.
22-cv-1031-JMY, 22-cv-0475-JMY, 22-cv-0586-JMY, (E.D. Pa.),
District Judge John Milton Younge for the Eastern District of
Pennsylvania grants the motions to dismiss appeals filed by AJX
Mortgage Trust I (a Delaware Trust), Wilmington Savings Fund
Society FSB, Gregory Funding LLC, and Great Ajax Operating
Partnership LP.
Currently at issue are three appeals filed by Kenneth J. Taggart
from orders entered by Bankruptcy Judge Ashley M. Chan in
relationship to a voluntary bankruptcy petition filed by Taggart in
the U.S. Bankruptcy Court for the Eastern District of Pennsylvania
which was docketed as In re Taggart, 21-12476-AMC.
The Court grants the Appellees/Respondents' motions to dismiss the
three appeals at issue in this matter because they are effectively
moot based on the bankruptcy court's dismissal of the underlying
Bankruptcy Petition. The bankruptcy court dismissed the bankruptcy
case because it found that there was no reasonable likelihood of
rehabilitation. In making this finding, the Bankruptcy Court relied
on the fact that Taggart's debt to income ratio was so
disproportionate that it would be unlikely that he would be able to
present a feasible Chapter 11 bankruptcy plan. It should also be
mentioned that Taggart failed to present any bankruptcy plan at all
despite the expiration of the deadline for presentation of a
reorganization plan.
The Court notes that the dismissal of Taggart's Bankruptcy
Petition/Case had the effect of placing the Parties in their
original positions. After dismissal of a bankruptcy case, all
property of the bankruptcy estate revests in the debtor or any
other entity in which the property was vested before commencement
of the bankruptcy case. Essentially, dismissal returns the parties
to the prebankruptcy status quo ante.
Likewise, the bankruptcy court's dismissal of the Bankruptcy
Petition/Case effectively lifted the stay of proceedings entered in
relationship to the state court quiet title action that was filed
by Taggart. The bankruptcy court order that granted AJX's motion to
stay the state court quiet title action clearly reads, "The quiet
title action docketed in the Philadelphia County Court of Common
Pleas at January Term, 2015, No. 1366 is hereby stayed until...the
dismissal of the Debtor [Taggart's] bankruptcy petition docketed at
21-12479-AMC. On May 4, 2022, the bankruptcy court dismissed the
Bankruptcy Petition. Therefore, the appeal that Taggart filed with
the Court in relationship to the stay of his quiet title action --
In re Taggart, 22-cv-0586-JMY -- is now moot.
On February 9, 2021, AJX filed a Motion to Determine the Priority
of its Secured Claim. In granting the Motion to Determine, the
bankruptcy court essentially found that AJX had a right to be paid
from the bankruptcy estate which ceased to exist as of May 4, 2022
when it dismissed the Bankruptcy Petition/Case. Therefore, the
Court finds no actual case or controversy exists at the present
time as to the priority of creditors and the right to be paid from
the bankruptcy estate which is now non-existent. Any dispute around
the amount of the claim or priority of the creditors in a Chapter
11 reorganization plan is now moot because no plan was every
approved.
On November 9, 2021, AJX filed a Motion for Turnover of Non-Estate
Property of Rents for 7242 Saul Street. The bankruptcy court Order
that granted Appellees/Respondents' motion to turnover rent is
essentially moot following the Bankruptcy Court's dismissal of
Taggart's Petition/Case. There is no indication that the
Appellees/Respondents have sought to enforce the Order since
dismissal of the Bankruptcy Petition/Case.
To the contrary, Appellees/Respondents have filed pleadings with
the Court in this action in which they clearly take the position
that the Order is no longer in effect; therefore, illustrating
their position that they are no longer entitled to collect rent
from the tenants of 7242 Saul Street based on the Order entered by
the bankruptcy court.
However, Taggart argues that the Order directing him to turnover
rent is not moot on appeal because he complied with the bankruptcy
court Order and forwarded rent that he collected from the tenants
to the Appellees/Respondents during the pendency of the Bankruptcy
Case.
To the extent issues raised in this appeal are not moot, the Court
finds that the bankruptcy court committed no error in ordering
Taggart to turnover rent. The Court is able to discern three basic
arguments presented on appeal in relationship to the Order to
turnover rent. First, Taggart attacks the bankruptcy court's
jurisdiction or authority to decide the dispute related to rent
proceeds derived from 7242 Saul Street because the property was
subject to ongoing litigation in state court -- including the quiet
title action. Taggart argues that he did not consent to the
Bankruptcy Court's exercise of jurisdiction over what he
characterizes as a non-core proceeding. Along these same lines, he
argues that the bankruptcy court should have applied the doctrine
of mandatory abstention and abstained from deciding an issue that
was subject to previously filed and pending litigation in state
court. Finally, Taggart argues that his due process rights were
violated because he was not afforded a meaningful hearing prior to
being deprived of his property rights in rent proceeds.
Specifically, he argues that he was deprived of sufficient notice
prior to the bankruptcy court holding the hearing, and he argues
that he was not afforded an opportunity to conduct discovery,
cross-examine witnesses or present evidence at the hearing.
In ruling on AJX's Motion to Turnover Rent, the bankruptcy court
essentially found that rent proceeds were not property of the
bankruptcy estate that would be subject to any potential Chapter 11
reorganization. The Court finds and concludes that the bankruptcy
court did not err in rendering a decision on this issue because
AJX's Motion to Turnover Rent directly implicated the "scope and
extent of property of the [estate] . . . [and] allocation of assets
among creditors . . . [which] issues are traditionally the province
of the Bankruptcy Court and . . . constitute "core proceedings" . .
. under 28 U.S.C. Section 157(b)." Therefore, the bankruptcy court
did not need to abstain from ruling on this issue.
The Court finds and concludes that the bankruptcy court did not
violate Taggart's due process rights. The Bankruptcy Court noticed,
scheduled and held hearings on Appellees/Respondents' Motion to
Turnover Rent and Taggart's Motion for Reconsideration. The
assignment of rent provision appeared in the Mortgage note executed
in relationship to the credit arrangement for 7242 Saul Street, and
Appellees/Respondents served Taggart with a demand to turnover
rent. Under Pennsylvania law assignment of rent provisions are
valid.
The three motions filed by Taggart to stay the bankruptcy case are
also moot. Taggart filed his Motions to Stay on May 3, 2022. The
next day on May 4, 2022, the bankruptcy court dismissed his
Bankruptcy Petition/Case. Following dismissal of his Bankruptcy
Petition/Case, there was nothing for the Court to stay. The Court
holds that the Parties -- including Taggart -- are now free to
proceed with their claims in the state court.
A full-text copy of the Memorandum dated Dec. 6, 2022, is available
at https://tinyurl.com/4aypn9nn from Leagle.com.
Kenneth J. Taggart sought Chapter 11 protection (Bankr. E.D. Pa.
Case No. 21-12476) on Sept. 9, 2021.
KOPIN CORP: CEO Michael Murray Appointed as Director
----------------------------------------------------
The Board of Directors of Kopin Corporation appointed Michael
Murray, the Company's chief executive officer, to fill the Board
vacancy left by David E. Brook's previously-reported resignation,
effective immediately.
According to the Company's Form 8-K filed with the Securities and
Exchange Commission, as an employee of the Company, Mr. Murray will
not receive any compensation for his service on the Board. Mr.
Murray has not been appointed to serve on any committees of the
Board. The Company is not aware of any transaction or relationship
involving Mr. Murray requiring disclosure under Item 404(a) of
Regulation S-K.
About Kopin
Kopin Corporation -- http://www.kopin.com-- is a developer and
provider of innovative display and optical technologies sold as
critical components and subassemblies for military, industrial and
consumer products. Kopin's technology portfolio includes
ultra-small Active Matrix Liquid Crystal displays (AMLCD), Liquid
Crystal on Silicon (LCOS) displays and Organic Light Emitting Diode
(OLED) displays, a variety of optics, and low-power ASICs.
Kopin reported a net loss of $13.47 million for the year ended Dec.
25, 2021, a net loss of $4.53 million for the year ended Dec. 26,
2020, and a net loss of $29.37 million for the year ended Dec. 28,
2019. As of Sept. 24, 2022, the Company had $49.48 million in
total assets, $19.27 million in total liabilities, and $30.21
million in total stockholders' equity.
KTS SOLUTIONS: Seeks $750,000 DIP Loan from Action Capital
----------------------------------------------------------
KTS Solutions, Inc. asks the U.S. Bankruptcy Court for the Eastern
District of Virginia for authority to obtain postpetition financing
and provide adequate protection.
To provide the Debtor with necessary funding to operate
post-petition, Action Capital Corporation is prepared to provide
the Debtor with debtor-in-possession financing in order to fund
payroll and operating expenses. Action Capital provided
pre-petition factoring to the Debtor. Action Capital has advised
that it would not provide the Debtor with any post-petition
financial accommodations unless it has the protections afforded
under section 364 of the Bankruptcy Code.
The DIP Facility from Action Capital contains these pertinent
terms:
a. Amount of Facility. The DIP Facility provides for funding
up to $750,000 of eligible accounts receivable as an advance with
the available balance to be paid on payment of the account
receivable.
b. Use of Financing. The DIP Facility will be used to fund
payroll, insurance premiums and obligations, working capital, and
general corporate needs, other obligations in the ordinary course
of the Debtor’s business and certain prepetition indebtedness to
the extent authorized by the Court, as well as to fund other
administrative expenses, including professional fees and fees of
the United States Trustee.
c. Interest and Fees: With respect to the daily average of
unpaid advances outstanding (computed on a monthly basis), interest
at a per annum rate equal to Prime Rate of Wells Fargo Bank, N.A.
(as such rate is changed from time to time) plus two percent (Prime
+ 2%), plus a monthly fee equal to three quarters of one percent of
such average outstanding balance. All interest and fees hereunder
shall be billed monthly in arrears with payment due on the billing
date. All calculations of interest will be compounded on the basis
of a 360-day year, for actual days elapsed.
d. Lien Status and Priority. For all of the obligations due to
Action Capital under the DIP Facility, Action Capital will have,
pursuant to section 364(c)(2) and 364(d)(1) of the Bankruptcy Code,
a first priority security interest in, and lien on, all property of
the Debtor, excluding avoidance actions. The liens of Action
Capital granted by the Interim Order will be subject to the prior
payment of professional, SubChapter V and UST fees, if any, and
will otherwise have the priority and be afforded priority senior
secured status afforded by sections 364(c)(2) and 364(d)(1) of the
Bankruptcy Code, as applicable.
e. Events of Default. The principal bankruptcy related
defaults include, but are not limited to:
-- appointment of a trustee;
-- dismissal or conversion of the Debtor's chapter 11 case
to a chapter 7 proceeding;
-- an event of default under the Factoring Agreement.
f. Default Rights. Upon the occurrence of an Event of Default
under the Interim Order (after providing 7 business days' prior
notice to the Debtor, the SubChapter V Trustee and the United
States Trustee, of the occurrence of such Event of Default), Action
Capital will have customary remedies, including, without
limitation, the right to terminate the DIP Facility and declare
all amounts then outstanding to be due and payable immediately,
without further order of, or application to, the Bankruptcy Court
and all rights provided under the Factoring Agreement. In addition,
upon the occurrence of an Event of Default or default under the
Interim Order, Action Capital's obligation to provide further
financing terminates without further notice.
The Debtor requires financing to meet its short-term operating
obligations and to stabilize its operations until such time as a
full hearing can be hearing on its longer-term financing needs.
The events precipitating the Chapter 11 filing are a combination of
economic factors resulting from the COVID-19 pandemic, as well as a
slower than anticipated collection of receivables, and several high
interest loans in the form of putative merchant cash advances. This
case was filed on an emergency basis after a large portion of the
Debtor's fleet of vehicles was threatened to be repossessed.
Prior to the commencement of these proceedings, the Debtor financed
its business operations by factoring. These transactions were
governed by a Factoring and Security Agreement. Under the Factoring
Agreement, KTS agreed to sell or "factor" receivables to Action
Capital and would be paid approximately 90% of its face value. When
Action Capital collects payment on the factored receivable, Action
Capital collects interest and fees, and remits the balance of the
payment to the Debtor.
Under the proposed DIP Facility, the Debtor will be able to sell
Action Capital both existing and future receivables for the same
consideration. Action Capital will then own and collect the
receivable. Action Capital pays the amount received on the account,
less the interest and fees due to Action Capital by the Debtor.
The Debtor requests that the Court conduct a preliminary hearing as
soon as the Court's calendar permits or the entry of the Interim
Order authorizing the Debtor to obtain working capital advances
under the Factoring Agreement in an amount or amounts not to exceed
$330,000 pending a final hearing on the Motion.
A copy of the motion is available at https://bit.ly/3YQtoLZ from
PacerMonitor.com.
A copy of the budget is available at https://bit.ly/3V8wqYB from
PacerMonitor.com.
The Debtor projects $640,170 in total income and $573,928 in total
expenses for the period from December 9, 2022 to January 8, 2023.
About KTS Solutions, Inc.
KTS Solutions, Inc. is a Virginia corporation, which provides
transportation services for disabled veterans, to and from medical
appointments, under a series of contracts with the United States
Department of Veterans Affairs.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Va. Case No. 22-11694) on December 9,
2022. In the petition signed by Kelvin Smith, chief executive
officer, the Debtor disclosed up to $10 million in both assets and
liabilities.
Justin P. Fasano, Esq., at McNamee Hosea, P.A., is the Debtor's
legal counsel.
LACHAETINERIA LLC: Seeks to Hire Jones and Walden as Counsel
------------------------------------------------------------
Lachaetineria, LLC seeks approval from the U.S. Bankruptcy Court
for the Northern District of Georgia to hire Jones and Walden, LLC
as its attorney.
The firm's services include:
(a) preparing pleadings and applications;
(b) conducting examination;
(c) advising the Debtor of its rights, duties and
obligations;
(d) consulting with and representing the Debtor with respect
to a Chapter 11 plan;
(e) performing legal services incidental and necessary to the
day-to-day operations of the Debtor's business; and
(f) taking all other actions incident to the proper
preservation and administration of the Debtor's estate and
business.
The hourly rates of the firm's counsel and staff are as follows:
Attorneys $250 - $425
Paralegals $110 - $200
Leslie Pineyro, Esq., a partner at Jones & Walden, 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:
Leslie M. Pineyro, Esq.
Jones & Walden, LLC
699 Piedmont Ave. NE
Atlanta, GA 30308
Telephone: (404) 564-9300
Email: lpineyro@joneswalden.com
About Lachaetineria LLC
Lachaetineria, LLC is a single asset real estate (as defined in 11
U.S.C. Sec. 101(51B)). The company's principal asset is located at
2756 Calloway Court Duluth, Ga.
Lachaetineria filed a petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Ga. Case No. 22-59772) on Dec. 2,
2022. In the petition filed by its manager, LaShonda Rawls, the
Debtor reported between $1 million and $10 million in both assets
and liabilities.
The Debtor is represented by Leslie M. Pineyro, Esq., at Jones and
Walden, LLC.
LANNETT CO: To Cut Workforce by 11% as Part of Restructuring Plan
-----------------------------------------------------------------
Lannett Company, Inc. disclosed in a Form 8-K filed with the
Securities and Exchange Commission it authorized a restructuring
and cost savings plan to streamline and realign its operations to
ensure the continued progression of its existing pipeline and
future growth.
According to the Company, the 2022 Restructuring Plan includes
operational improvements and cost efficiencies as well as
engagement with more external partners and technology providers,
globally, to execute on its R&D plans and operations. These
actions will result in the reduction to the Company's workforce by
64 positions, equal to approximately 11% of the Company's total
number of employees, to align with its product development
approach. The workforce reduction will be implemented in several
phases throughout the remainder of the Company's current fiscal
year. In connection with the shift in the Company's R&D
operations, the Company also anticipates exiting its State Road and
Torresdale facilities in Philadelphia, Pennsylvania by the end of
its current fiscal year.
The Company estimates that it will incur approximately $3.0 million
in severance-related costs in connection with the 2022
Restructuring Plan, of which $0.4 million is expected to be
incurred in the second quarter of Fiscal 2023. These expenses were
factored into the operational improvements and cost efficiency
initiatives that were discussed by management during the Fiscal
2023 first quarter earnings call held on Nov. 2, 2022. The Company
expects to provide an update on these efforts and related financial
impact by its February 2023 earnings call.
As a result of the 2022 Restructuring Plan, the Company expects to
record a non-cash impairment charge of its Torresdale facility in
the estimated range of $6 million to $8 million in the second
quarter of Fiscal 2023. Any non-cash impairment charges would be
in addition to the restructuring costs.
About Lannett Company
Lannett Company, founded in 1942, develops, manufactures, packages,
markets and distributes generic pharmaceutical products for a wide
range of medical indications. For more information, visit the
company's website at www.lannett.com.
The Company reported a net loss of $231.62 million for fiscal year
ended June 30, 2022, a net loss of $363.47 million for fiscal year
ended June 30, 2021, and a net loss of $33.37 million for fiscal
year ended June 30, 2020. As of Sept. 30, 2022, the Company had
$467.30 million in total assets, $744.86 million in total
liabilities, and a total stockholders' deficit of $277.56 million.
* * *
As reported by the TCR on Feb. 11, 2022, S&P Global Ratings lowered
its issuer-level rating on Lannett Inc. to 'CCC+' from 'B-'. The
outlook is negative. S&P said, "The negative outlook reflects the
possibility of another downgrade if we believed that Lannett were
likely to consider a distressed exchange offer or sub-par
redemption. This could occur if we expected continued pricing
erosion within its key products or delays in new product launches
to meaningfully reduce FOCF prospects and liquidity.
In October 2022, Moody's Investors Service downgraded the ratings
of Lannett Company, Inc., including the Corporate Family Rating to
Ca from Caa1. The downgrade reflects Moody's expectation for
continued deterioration in Lannett's operating performance, as base
portfolio of oral generic drugs will continue to erode due to
intense competitive pricing pressures. Given the forecast of
negative EBITDA over the next year, Moody's views Lannett's debt
levels as unsustainably high, and liquidity as weak, with the
company continuing to burn through cash balance, well into fiscal
year 2024.
LAS VEGAS SKYDIVING: Unsecured Creditors to Split $228K in Plan
---------------------------------------------------------------
Las Vegas Skydiving Adventures, LLC filed with the U.S. Bankruptcy
Court for the District of Nevada a Plan of Reorganization for Small
Business dated December 13, 2022.
Since 2014, the Debtor has been in the business of facilitating
skydives, training skydive instructors, and granting visitors to
Southern Nevada with the experience of skydiving.
The Plan Proponent's financial projections show that the Debtor
will have projected disposable income of $228,302.47. The final
Plan payment is expected to be paid on or before 3 years from
confirmation.
Non-priority unsecured creditors holding allowed claims will
receive distributions, which the proponent of this Plan has valued
at approximately 0.1966 cents on the dollar. The Plan also provides
for the payment of administrative and priority claims.
Class 2 consists of the claim of Wells Fargo Bank N.A., d/b/a Wells
Fargo Auto. The underlying collateral securing the Wells Fargo
Bank's claim will be surrendered. Any deficiency will be relegated
to Class 3.
Class 3 consists of non-priority unsecured creditors. Debtor will
pay a total pot of $228,302.47 to all allowed unsecured claim, each
taking on a pro rata basis.
The Plan will be funded through cash flow generated from future
operation of the Business, and as may be necessary, from infusions
of additional money from Mr. Vassilev. This Plan will also be paid
by any funds gained through pursuit of malpractice claims against
previous trademark litigation counsel.
A full-text copy of the Plan of Reorganization dated December 13,
2022, is available at https://bit.ly/3v8v3Pe from PacerMonitor.com
at no charge.
Attorneys for Debtor:
LEAVITT LEGAL SERVICES, P.C.
James T. Leavitt, Esq.
E-mail: jamestleavittesq@gmail.com
601 South 6th St.
Las Vegas, NV 89101
Tel: (702) 385-7444
About Las Vegas Skydiving
Las Vegas Skydiving Adventures LLC has been in the business of
facilitating skydives, training skydive instructors, and granting
visitors to Southern Nevada with the experience of skydiving. The
Debtor filed Chapter 11 Petition (Bankr. D. Nev. Case No. 22 13307)
on September 14, 2022.
The Debtor is represented by James T. Leavitt, Esq. of LEAVITT
LEGAL SERVICES, P.C.
LASHLINER INC: Amends Unsecureds & Platt Cheema Secured Claims
--------------------------------------------------------------
LashLiner, Inc., submitted a Second Amended Small Business Plan of
Reorganization dated December 13, 2022.
The Debtor is a cosmetics company, selling its patented magnetic
eyeliner and false eyelash system primarily through eCommerce.
The LashLiner values are estimated by the Debtor. The Debtor's
primary assets consist of the LashLiner Merchandise, deposits,
equipment and intellectual property including two new patents
covering LashLiner products in Japan. The Debtor estimates the
value of the patents as of the date of the filing of this Plan as
$371,410. No independent appraisal of the assets has been
performed, but the Debtor estimates that the total retail value of
LashLiner Merchandise/Inventory and patents is approximately
$5,949,635.
Pursuant to the referenced adjustments to unsecured claimants, for
purposes of the Plan, the Debtor estimates the allowed unsecured
claims to total approximately $1,966,515.00.
Class 3 consists of a Secured Claim held by PLATT CHEEMA RICHMOND
PLLC. The creditor filed Proof of Claim No. 16 in the Claims
Register of this case asserting a secured claim of $14,000 as an
attorney's lien in the form of a retainer and an unsecured claim of
$23,585.72. The Proof of claim details a LashLiner invoice of
$18,304 and a non-debtor Tori Belle invoice of $19,281 which is not
a part of this Chapter 11 and is not included in the unsecured
creditors' claims. Debtor objects to the Class 3 Claim and will
seek return of the $14,000 as a preferential transfer.
Class 4 is comprised of all holders of Allowed General Unsecured
Claims against the Debtor. Based upon the Proofs of Claim (POC)
that have been filed and the Debtor's adjustments to the POC's, the
Debtor estimates some $1,966,515.00 in Allowed Class 4 Claims on
the Effective Date of the Plan.
Each holder of an Allowed Class 4 Claim shall receive its pro rata
share of all of the Debtor's projected net disposable income over
the five-year period following the Effective Date. Based on the
attached projections, the Debtor anticipates such amount equal 100%
of the Class 4 Claims. Said payments shall be made bi-annually
commencing on the 6th month following the Effective Date of the
Plan with successive biannual payments made each 6 month period
thereafter.
The Plan will be funded from a combination of (i) funds on hand in
the estate at the time of Confirmation; and (ii) future income
generated through sale of LashLiner merchandise, as well as (iii)
New Value contributed to the Debtor by Tori Belle as necessary.
The Debtor's financial projections show that the Debtor will have
an aggregate annual average pre-tax cash flow, after paying
operating expenses of between $285,300.00 and $304,719.00, prior to
making the Plan payments. The final Plan payment is expected to be
paid 60 months following the Effective Date.
A full-text copy of the Second Amended Plan dated December 13,
2022, is available at https://bit.ly/3HSttbD from PacerMonitor.com
at no charge.
Counsel for the Debtor:
Dmitry Merrit, Esq.
Law Offices of D. Merrit
14205 SE 36th Street, Suite 100
Bellevue, WA 98006
Tel: (360)322-4511
Fax: (323) 978-6598
Email: merritlaw@yahoo.com
About LashLiner Inc.
LashLiner Inc., doing business as Lashliner LLC, is an innovative
cosmetics brand. The company's initial product is a patent-pending
magnetic eyeliner and eyelash system. LashLiner Inc. filed a
petition for relief under Subchapter V of Chapter 11 of the
Bankruptcy Code (Bankr. W.D. Wash. Case No. 22-11273) on August 8,
2022. In the petition filed by Robert Kitzberger, as president,
the Debtor reported assets and liabilities between $1 million and
$10 million.
Kathryn E Perkins has been appointed as Subchapter V trustee.
The Law Offices of D. Merrit & Associates, is the Debtor's counsel.
LEGACY EJY: Gen. Unsecureds Owed $26.5M to Get 46% to 64% in Plan
-----------------------------------------------------------------
Legacy Ejy Inc., et al., submitted an Amended Combined Disclosure
Statement and Chapter 11 Plan of Liquidation.
The Combined Disclosure Statement and Plan constitutes a
liquidating chapter 11 plan for the Debtors.
On July 3, 2022, the Debtors filed a motion seeking, inter alia,
(i) approval of the bid procedures in connection with the Sale and
(ii) approval of the Stalking Horse Agreement. On July 26, 2022,
the Bankruptcy Court held a hearing on the bid procedures entered
the Bidding Procedures Order approving such relief.
In an effort to achieve the highest or otherwise best bid for all
or substantially all of their assets, the Debtors and their
advisors continued to market the Debtors' assets on a postpetition
basis in accordance with the Bankruptcy Court-approved bidding
procedures. Beginning in July 2022, the Debtors and their advisors
reached out to 32 prospective buyers, and the Debtors executed a
non-disclosure agreement with one new prospective buyer.
Ultimately, the Debtors did not receive a bid from such party or
any other party by the bid deadline on August 8, 2022.
Accordingly, the Debtors filed a notice selecting Asurion (or its
designee as permitted under the Asset Purchase Agreement) as the
successful bidder.
On Aug. 12, 2022, the Bankruptcy Court approved the sale, and on
Aug. 31, 2022, the sale was consummated.
Under the Plan, Class 3A General Unsecured Claims total approx.
$26,250,000 to $26,750,000 and will recover 46% to 64% of their
claim. Each Holder of an Allowed General Unsecured Claim shall
receive and in exchange for, such General Unsecured Claim, (x)(i)
its Pro Rata share (considering only Class 3A General Unsecured
Claims) of the GUC 3A Priority Amount and (ii) its Pro Rata share
(considering both Class 3A General Unsecured Claims as reduced by
distribution of the GUC 3A Priority Amount and Class 3B Unsecured
Note Claim) of the Remaining Distributable Assets or (y) such other
treatment as may be agreed upon by such Holder and the Debtors or
the Plan Administrator, as applicable. Class 3A is impaired.
"GUC 3A Priority Amount" means the first $12,500,000 of Net
Distributable Assets available for distribution to Class 3A
exclusively.
"Remaining Distributable Assets" means the Net Distributable Assets
reduced by the GUC 3A Priority Amount.
As of the Petition Date, the Debtors' obligations under the
Unsecured Promissory Note totaled not less than $10 million, plus
accrued interest and expenses.
Class 3B consists of Unsecured Note Claim totaling approximately
$10,136,986 and will recover 0% to 31% of their claims. The Holder
of an Allowed Unsecured Note Claim shall receive and in exchange
for, such Unsecured Note Claim, its Pro Rata share (considering
both Class 3A General Unsecured Claims as reduced by distribution
of the GUC 3A Priority Amount and the Class 3B Unsecured Note
Claim) of the Remaining Distributable Assets, or such other
treatment as may be agreed upon by such Holder, on the one hand,
and the Debtors or the Plan Administrator, as applicable, on the
other hand. For the avoidance of doubt, the Holder of the Unsecured
Note Claim shall not share in the GUC 3A Priority Amount. Class 3B
is impaired.
Allowed Claims and any amounts necessary to wind down the Debtors'
Estates shall be paid from the Debtors' Assets, subject to the
limitations and qualifications described herein.
Co-Counsel to the Debtors:
Daniel J. DeFranceschi, Esq.
Paul N. Heath, Esq.
Brendan J. Schlauch, Esq.
RICHARDS, LAYTON & FINGER, P.A.
One Rodney Square, 920 North King Street
Wilmington, DE 19801
Tel: 302-651-7700
Fax: 302-651-7701
E-mail: defranceschi@rlf.com
heath@rlf.com
schlauch@rlf.com
- and -
Cullen Drescher Speckhart, Esq.
Weiru Fang, Esq.
COOLEY LLP
1299 Pennsylvania Avenue, NW, Suite 700
Washington, DC 20004
Tel: (202) 842-7800
Fax: (202) 842-7899
E-mail: cspeckhart@cooley.com
wfang@cooley.com
- and -
Michael A. Klein, Esq.
Evan Lazerowitz, Esq.
Joseph W. Brown, Esq.
55 Hudson Yards
New York, NY 10001
Tel: (212) 479-6000
Fax: (212) 479-6275
E-mail: mklein@cooley.com
elazerowitz@cooley.com
jbrown@cooley.com
A copy of the Amended Combined Disclosure Statement and Chapter 11
Plan of Liquidation dated Dec. 9, 2022, is available at
https://bit.ly/3PhpIyg from PacerMonitor.com.
About Legacy EJY
Enjoy Technology, Inc., now known as Legacy EJY, Inc., provides a
commerce-at-home experience for consumers through their network of
mobile retail stores. It is based in Palo Alto, Calif.
Enjoy Technology and affiliates, Enjoy Technology Operating Corp.
and Enjoy Technology, LLC, sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. D. Del. Lead Case No. 22-10580) on June
30, 2022. In the petition signed by its chief legal officer and
corporate secretary, Tiffany N. Meriweather, Enjoy Technology, Inc.
disclosed $111,661,000 in total assets and $69,956,000 in
liabilities.
Judge J. Kate Stickles oversees the cases.
The Debtors tapped Cooley, LLP and Richards, Layton, and Finger
P.A. as legal counsels; Centerview Partners, LLC as investment
banker; PricewaterhouseCoopers, LLP as auditor; and Todd Zoha of AP
Services, LLC as chief financial officer. Stretto, Inc., is the
claims, noticing agent and administrative advisor.
Asurion, LLC, a Delaware Limited Liability Company, as DIP lender,
is represented by Gibson, Dunn & Crutcher LLP, Bass, Berry & Sims
PLC, and Pachulski Stang Ziehl & Jones, LLP.
The U.S. Trustee for Regions 3 and 9 appointed an official
committee to represent unsecured creditors in the Debtors' Chapter
11 cases on July 11, 2022. Fox Rothschild, LLP and FTI Consulting,
Inc. serve as the committee's legal counsel and financial advisor,
respectively.
* * *
On Aug. 12, 2022, the court approved the sale of the Debtors'
assets to Asurion. The Debtors changed their names to Legacy EJY,
Inc., Legacy EJY Operating Corp. and Legacy EJY Subsidiary, LLC
following the sale of the assets.
LEVINSON & SANTORO: Seeks to Hire Kirby Aisner & Curley as Counsel
------------------------------------------------------------------
Levinson & Santoro Electric Corp. seeks approval from the U.S.
Bankruptcy Court for the Eastern District of New York to hire Kirby
Aisner & Curley, LLP as its legal counsel.
The firm's services include:
a. advising the Debtor with respect to its powers and duties
and the continued management of its property and affairs;
b. negotiating with creditors of the Debtor and working out a
plan of reorganization, and taking the necessary legal steps in
order to effectuate such a plan;
c. preparing legal papers;
d. appearing before the bankruptcy court;
e. attending meetings and negotiating with representatives of
creditors and other parties in interest;
f. advising the Debtor in connection with any potential
refinancing of secured debt;
g. representing the Debtor in connection with obtaining
post-petition financing, if necessary;
h. taking any necessary action to obtain approval of a
disclosure statement and confirmation of a plan of reorganization;
i. other necessary legal services.
The firm will be paid at these rates:
Partners $450 to $550 per hour
Associates $295 per hour
Paraprofessionals $150 per hour
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a retainer payment in the amount of $5,055.
Dawn Kirby, Esq., an attorney at Kirby Aisner & Curley, 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:
Dawn Kirby, Esq.
Kirby Aisner & Curley, LLP
700 Post Road, Suite 237
Scarsdale, NY 10583
Phone: (914) 401-9502
Email: dkirby@kacllp.com
About Levinson & Santoro Electric Corp.
Levinson & Santoro Electric Corp. is a New York-based provider of
electrical work and services.
Levinson & Santoro filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No.
22-42814) on Nov. 9, 2022, with between $50,000 and $100,000 in
assets and between $1 million and $10 million in liabilities. Fred
Levinson, president of Levinson & Santoro, signed the petition.
Judge Nancy Hershey Lord presides over the case.
Dawn Kirby, Esq., at Kirby Aisner & Curley, LLP represents the
Debtor as counsel.
LGID NY: Case Summary & Five Unsecured Creditors
------------------------------------------------
Debtor: LGID NY LLC
1430 47th Street
Brooklyn, NY 11219
Chapter 11 Petition Date: December 21, 2022
Court: United States Bankruptcy Court
Eastern District of New York
Case No.: 22-43171
Judge: Hon. Elizabeth S. Stong
Debtor's Counsel: Joel M. Shafferman, Esq.
SHAFFERMAN & FELDMAN LLP
137 Fifth Avenue
9th Floor
New York, NY 10010
Tel: (212) 509-1802
Fax: (212 509-1831
Email: shaffermanjoel@gmail.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $500,000 to $1 million
The petition was signed by David Goldwasser, managing member of FIA
Capital Partners, LLC, Mgr of Debtor.
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/XRJ2IGI/LGID_NY_LLC__nyebke-22-43171__0001.0.pdf?mcid=tGE4TAMA
LUCCI RESTAURANT: Unsecureds to Recover 2.95% over 5 Years
----------------------------------------------------------
Lucci Restaurant Group, LLC, filed with the U.S. Bankruptcy Court
for the Northern District of Illinois a Small Business Plan of
Reorganization dated December 13, 2022.
Debtor operates a restaurant located at 695 Deerfield Road in
Deerfield, Illinois. Debtor is a limited liability company owned by
affiliated debtors Agim Arifi (50%) and Bashkim Arifi (50%).
Debtor suffered business reverses characteristic of all restaurants
during the COVID-19 pandemic. This case was triggered by Huntington
National Bank's aggressive action in the District Court, Case No.
21-cv-01304, seeking and obtaining summary judgment against Bobby's
Lincoln Park LLC, the principal obligor on Huntington's loan, which
was guaranteed by this Debtor and the debtors in the affiliated
cases.
In the complaint for judgment on the guaranties, Huntington also
sought to foreclose against all real estate given as collateral. As
a result, Debtor and its co-obligors have sought relief in this
Court under Subchapter V of Chapter 11.
The only Secured Claim in this case is that of the Small Business
Administration ("SBA"), which holds a lien on its EIDL (Economic
Injury Disaster Loan) proceeds to secure its $150,000 EIDL loan.
Debtor proposes to pay the SBA's claim in the ordinary course of
business and in accordance with its terms.
Class 2 consist of the $2,035,311.50 in allowed general unsecured
claims in this case. Debtor shall distribute payments totaling
$60,000.00 to creditors holding general unsecured claims, payable
in quarterly installments of $3,000.00, that sum being equal to
100% of the Debtor's projected disposable income over the five-year
period subsequent to confirmation of the Plan.
Such payments shall be distributed to unsecured creditors holding
allowed general unsecured claims pro rata, by the Debtor if the
Plan is confirmed consensually, and by the Subchapter V Trustee,
after deduction of proper compensation to such Trustee, if the Plan
is confirmed without the consent of the creditors. General
unsecured claims are impaired by the Plan. This Class will receive
a distribution of 2.95% of their allowed claims.
Class 3 consists of Equity Interest holders: Agim Arifi (50%)
Bashkim Arifi (50%). Equity Interest holders will retain their
membership interests under the Plan.
On Confirmation of the Plan, all property of the Debtor, tangible
and intangible, including, without limitation, licenses, furniture,
fixtures and equipment, will revert, free and clear of all Claims
and Equitable Interests except as provided in the Plan, to the
Debtor. The Debtor expects to have sufficient cash on hand to make
the payments required on the Effective Date.
Debtor will maintain an account from its monthly income in which it
shall deposit a sum not less than $1,000.00 per month during the
term of this Plan so as to fund the quarterly payments required by
the Plan. Quarterly, Debtor will disburse an amount equal to not
less than $3,000.00 to holders of allowed unsecured claims, pro
rata. If the Trustee is still serving, Debtor will disburse that
sum to the Trustee who may then disburse it to unsecured creditors
pro rata net of any applicable Trustee's fee.
A full-text copy of the Plan of Reorganization dated December 13,
2022, is available at https://bit.ly/3V9f91C from PacerMonitor.com
at no charge.
Debtor's Counsel:
Richard N. Golding, Esq.
The Golding Law Offices, P.C.
500 N. Dearborn Street, 2nd Floor
Chicago, IL 60654
Tel: (312) 832-7885
Email: rgolding@goldinglaw.net
About Lucci Restaurant Group
Lucci Restaurant Group, LLC, owner of a full-service restaurant in
Deerfield, Ill., filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. N.D. Ill. Case No. 22-03452) on March
25, 2022, listing up to $500,000 in assets and up to $10 million in
liabilities.
Judge David D. Cleary oversees the case.
Richard N. Golding, Esq., at The Golding Law Offices, P.C. serves
as the Debtor's legal counsel.
MANCUSO MOTORSPORTS: Files Emergency Bid to Use Cash Collateral
---------------------------------------------------------------
Mancuso Motorsports, Inc. asks the U.S. Bankruptcy Court for the
Northern District of Illinois, Eastern Division, for authority to
use cash collateral in accordance with the budget, with a 10%
variance.
The Debtor seeks Cash Collateral access through February 19, 2023.
A hearing on the matter is set for December 22 at 9 a.m.
The Debtor requires the use of cash collateral to continue to
operate its business, manage its financial affairs, and effectuate
an effective reorganization.
The Debtor's purported secured creditors are:
Secured Creditor Amount Due and Owing
---------------- --------------------
Byline Bank $297,000
Ryan Daube, $778,650
as trustee of the
Ryan Daube Trust
DFK Direct Investments, LLC $2,991,656
DFK Group Inc. $429,675
DFK Direct LLC $1,000,000
Francis Roti $10,000
Ryan Daube $4,688,305
Rob Mancuso $70,000
The Debtor's Chapter 11 filing was triggered by insufficient cash
flow as a residual effect from the COVID-19 epidemic.
The Debtor, as of the Petition Date, held bank accounts totaling
approximately $125,000, accounts receivable of approximately
$23,684, and inventory valued at approximately $5,250 at cost.
The Debtor's proposed use pursuant to the Budget will permit the
Debtor to sustain its business operations and reorganize its
financial affairs through the implementation of a successful plan
of reorganization. Furthermore, the Debtor's proposal will
adequately protect the purported secured interests of the Secured
Parties.
As adequate protection, the Debtor proposes to grant replacement
liens to the respective Secured Parties to the extent of their
pre-petition liens, and attaching to the same assets of the Debtor
in which the Secured Parties asserted pre-petition liens.
The Debtor will also maintain and pay premiums for insurance to
cover all of its assets from fire, theft and water damage.
A copy of the motion is available at https://bit.ly/3VeLmVp from
PacerMonitor.com.
About Mancuso Motorsports, Inc.
Mancuso Motorsports, Inc. is a privately held company that provides
automotive repair and maintenance services.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ill. Case No. 22-14513) on December
16, 2022. In the petition signed by Jackie Cahan, CFO and COO, the
Debtor disclosed up to $10 million in both assets and liabilities.
Judge Donald R. Cassling oversees the case.
Scott R. Clar, Esq., at Crane, Simon, Clar & Goodman, serves as
counsel to the Debtor.
MARLIN KRIDER: Court OKs Interim Cash Collateral Access
-------------------------------------------------------
The U.S. Bankruptcy Court for the Western District of North
Carolina, Statesville Division, authorized Marlin Krider Land and
Timber, Inc. to use cash collateral on an interim basis in
accordance with the budget, with a 10% variance.
As previously reported by the Troubled Company Reporter, 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.
As adequate protection, the lien holders are granted replacement
liens in postpetition Cash Collateral to the same extent and
priority as existed pre-petition. The Debtor will transfer $70,000
to be held in Trust by the Chapter 11 Trustee.
A status hearing on the Cash Collateral request has been set for
February 3, 2023 at 11:00 a.m.
A copy of the order is available at https://bit.ly/3G3B4lt 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 (Bankr. 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.
Judge Laura T. Beyer oversees the case.
Thomas C. Flippin, Esq., at the Law Offices of Thomas C. Flippin,
is the Debtor's legal counsel.
MONTGOMERY REALTY: Case Summary & 14 Unsecured Creditors
--------------------------------------------------------
Debtor: Montgomery Realty Group, LLC
1675 Willow Pass Road
Concord, CA 94519
Business Description: The Debtor owns commercial real
property located at 1675 Willow Pass Rd,
Concord, CA valued at $25 million.
Chapter 11 Petition Date: December 20, 2022
Court: United States Bankruptcy Court
Northern District of California
Case No.: 22-41290
Judge: Hon. William J. Lafferty
Debtor's Counsel: Michael St. James, Esq.
ST. JAMES LAW, P.C.
22 Battery Street, Suite 810
San Francisco, CA 94111
Tel: 415-391-7566
Fax: 415-391-7568
Email: ecf@stjames-law.com
Total Assets $25,062,073
Total Liabilities: $14,590,335
The petition was signed by Raj Maniar as manager.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/6T5ANOQ/Montgomery_Realty_Group_LLC__canbke-22-41290__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's 14 Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. CA Dept of Elevator Permit $675
Industrial Relations
Attn: Billing/Accounting
1515 Clay St #1301
Oakland, CA 94612
Tel: 510-622-6026
Email: conveyance-inquire@dir.ca.gov
2. CA Dept of Elevator Permit $675
Industrial Relations
Attn: Billing/Accounting
1515 Clay St #1301
Oakland, CA 94612
Tel: 510-622-6026
Email: conveyance-inquire@dir.ca.gov
3. CA Dept of Elevator Permit $675
Industrial Relations
Attn: Billing/Accounting
1515 Clay St #1301
Oakland, CA 94612
Tel: 510-622-6026
Email: conveyance-inquire@dir.ca.gov
4. CA Dept of Elevator Permit $675
Industrial Relations
Attn: Billing/Accounting
1515 Clay St #1301
Oakland, CA 94612
Tel: 510-622-6026
Email: conveyance-inquire@dir.ca.gov
5. Contra Costa Properties Monthly Real $115,995
Attn: Pete Zipkin, Property
President/Broker Association Fees
650 Detroit Ave #2A
Concord, CA 94518
Pete Zipkin, President/Broker
Tel: 925-687-0111
Email: PeteZ@cocoprop.com
6. Contra Costa Water Water- $0
District Commercial
Attn: Billing/Accounting Service
P O Box H20
Concord, CA 94524
Tel: 925-688-8044
7. Greenfield LLP Legal Fees $7,323
Attn: Maureen Harrington, Esq.
55 South Market Street
Suite 1500
San Jose, CA 9511
Tel: (408) 995-5600
Email: MHarrington@greenfieldlaw.com
8. Industrial H20, Inc. Chemical $2,300
Attn: Steve Meyer Water
P O Box 6722 Treatment
San Mateo, CA 94403
Tel: 650-574-1273
Email: industrialwtr@gmail.com
9. Kone, Inc. Elevator $2,541
Attn: Billing/Accounting Maintenance
15021 Wicks Blvd Agreement
San Leandro, CA 94577
Tel: 510-351-5141
10. M R Christensen Services $4,893
Construction, Inc. Rendered
Attn: Accounting/Billing
1465 Civic Court,
Ste 1050
Concord, CA 94520
Tel: 925-674-0464
Email: info@mrchristense
nconstruction.com
11. MSR Mechanical LLC HVAC Contractor/ $3,350
Attn: Billing/Accounting Repairs
4501 California Court
Benicia, CA 94510
Tel: 925-681-2797
Email: info@msrmech.com
12. PG&E Commercial Gas $38,811
Attn: Accounting/Billing Dept. & Electric
PO Box 997300
Sacramento, CA 95899
Tel: 800-468-4743
13. Roto-Rooter Services $1,275
Attn: Accounting/Billing Rendered
5672 Collections
Center Dr
Chicago, IL
60693-0056
Tel: 513-401-7141
14. Tee Enterprises, LLC Security $15,000
fka Da Girlz, LLC DBA Deposit
Jack Pot Bins
Attn: Michelle Earl &
Jonni Earl
1655 Galindo Street,
Unit 1328
Concord, CA 94520
Tel: 808-283-9264
Email: Michelle@PaiaMercantile.com
MONTROSE MULTIFAMILY: Court OKs Cash Collateral Access Thru Dec 31
------------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas,
Houston Division, authorized Montrose Multifamily Members, LLC and
affiliates to use cash collateral on an interim basis in accordance
with the budget.
The Debtors require the use of cash collateral in which DLP Capital
Servicing LLC may assert an interest, in order to continue its
ordinary course business operations and to maintain the value of
their bankruptcy estate. DLP is the servicer for lender DLP
Lending Fund, LLC, DLP Housing Loans, LLC, DLP Income & Growth Fund
LLC, and its related entities.
The Debtors are permitted to use cash collateral from December 19
through December 31, 2022, solely to pay the expenses described in
the expenditures contained in the budget, with a 15% variance.
As adequate protection, DLP Capital is granted valid, binding,
enforceable, and automatically perfected replacement security
interests in, and liens upon all of the Debtor's assets.
To the extent of Diminution of Value, if any, of their respective
interests in the cash collateral, and subject to the Carve-Out, DLP
Capital is granted, in addition to claims under section 503(b) of
the Bankruptcy Code, an allowed superpriority administrative
expense claim against each Debtor and its respective estate
pursuant to the fullest extent provided for in section 507(b) of
the Bankruptcy Code.
The "Carve-Out" means quarterly fees required to the United States
Trustee pursuant to 28 U.S.C. section 1930(a)(6) and any fees
payable to the Clerk of the Bankruptcy Court. All liens and claims
of the DLP Capital, regardless of their nature or priority, will be
subject to the Carve-Out.
DLP Capital will also be provided adequate protection payments.
On or before January 6, 2023, the Debtors must: (i) satisfy all
reporting requirements set forth in the Interim Cash Collateral
Orders, (ii) make all required payments and deposits required by
the Interim Orders; and produce all documents / information
required. In the event that any of the Debtors fail to comply with
this provision of the Order by the Deadline, the Debtors' authority
to use cash collateral will terminate effective January 7, 2023, at
12:01 a.m.
A final hearing on the matter is set for January 6 at 9 a.m.
A copy of the order and the Debtor's budget is available at
https://bit.ly/3PFxOkB from PacerMonitor.com.
The Debtor projects $210,916 in total income and $199,473 in total
operating expenses.
About Montrose Multifamily Members, LLC
Montrose Multifamily Members, LLC own and manage 14 multifamily
apartment complexes in the Montrose neighborhood of Houston,
Texas.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Case No. 22-90323) on October 4,
2022. In the petition signed by Christopher Bran, managing partner,
the Debtor disclosed up to $10 million in both assets and
liabilities.
Judge David R. Jones oversees the case.
Susan Tran Adams, Esq., at Tran Singh, LLP, is the Debtor's
counsel.
Attorneys for DLP Capital LLC, as servicer for DLP Lending Fund,
LLC, DLP Housing Loans, LLC, DLP Income & Growth Fund, LLC, are
Lloyd Andrew Lim, Esq., Rachel Thompson Kubanda, Esq., and James
Eric Lockridge, Esq. at KEAN MILLER LLP.
MOUNTAIN MOVING: Seeks Cash Collateral Access
---------------------------------------------
Mountain Moving LLC asks the U.S. Bankruptcy Court for the Wester
District of Virginia, Harrisonburg Division, for authority to use
cash collateral and provide adequate protection.
The Debtor requires the use of cash collateral to permit it to
purchase fuel, pay vendors, perform on-going maintenance on its
equipment, meet its payroll obligations to its employees, satisfy
deposit and payment obligations to utilities and other providers,
maintain in effect its insurance policies, preserve and protect its
assets, and to generally and otherwise pay obligations critical to
continuing the operation of its business.
The Debtor's prepetition financial problems were the result of the
Debtor's failed efforts to provide residential moving services. The
Debtor was not able to provide these services in a profitable
manner and incurred a significant amount of debt in effort to fund
operations, while it attempted to modify its business model. The
majority of this debt was in the form of "merchant cash advances."
The Debtor recognized that it could not sustain operations
providing these moving services and transitioned to a company that
provides freight hauling services.
The Debtor expects a strong turnaround post-petition. In recent
months, its operations have become more profitable due to a
reduction in employees, streamlined operations focused solely on
hauling freight for a reliable dispatcher, a reduction in costs due
to moving certain repair work in-house, and other cost saving
measures relating to various vendors. Nonetheless, the Debtor has
struggled to achieve profitability due to its debt payments to
various merchant cash advance lenders. The Debtor intends to
restructure its debts to these various merchant cash advance
lenders in hopes of maintaining better cash flow for operations.
A review of the Debtor's books and records and the records of the
Virginia State Corporation Commission indicates that the following
seven entities may assert a claim against the Debtor's personal
property interests, including its accounts, inventory, goods,
and/or equipment:
a. On Deck Capital
b. Rapid Finance
c. LG Funding, LLC
d. Cloudfund, LLC
e. RDM Capital Funding, LLC dba FinTap
f. White Road Capital/GFE Holdings
g. Funding Metrics, LLC dba Lendini
According to records of the Debtor, all of the Lienholders, with
the exception of On Deck Capital, lent funds to the Debtor through
"Merchant Cash Advances", whereby funds are loaned based on a
volume or percentage of anticipated accounts receivable rather than
assigning (or factoring) specific accounts receivable. The Debtor
does not concede that the Lienholders, specifically the MCAs, hold
valid and perfected liens against cash collateral.
As adequate protection, the Debtor proposes that the Lienholders
receive a continuing interest in and lien on all collateral of
Debtor of the same type and nature that exists as of the Petition
Date with the same validity (or invalidity) and priority as exists
as of the Petition Date.
A copy of the motion and the Debtor's budget is available at
https://bit.ly/3YEFbwr from PacerMonitor.com.
The budget provides for total expenses, on a weekly basis, as
follows:
$19,225 for the week ending December 23, 2022;
$18,961 for the week ending December 30, 2022;
$18,246 for the week ending January 6, 2023;
$15,450 for the week ending January 13, 2023;
$21,036 for the week ending January 20, 2023; and
$18,750 for the week ending January 27, 2023.
About Mountain Moving LLC
Mountain Moving LLC, a Virginia limited liability company, provides
freight transport services on a regional basis. Its sole member is
Thomas Powell.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Va. Case No. 22-50561) on December 16,
2022. The Debtor disclosed up to $100,000 in assets and up to $1
million in liabilities.
Hannah W. Hutman, Esq., at Hoover Penrod, PLC, represents the
Debtor as legal counsel.
MOUNTAIN PROVINCE: Shareholders OKs Refinancing Transaction
-----------------------------------------------------------
Mountain Province Diamonds Inc. held a special meeting of
shareholders at which the Company's disinterested shareholders
approved the issuance of new senior secured second lien loan notes
in an aggregate principal amount of $195,000,000, including to
certain entities ultimately beneficially owned by Mr. Dermot
Desmond, which would be used to refinance $189,150,000 of the
Company's existing 8.000% Senior Secured Second Lien Notes due 2022
with the remaining portion of the Existing Notes being repaid with
cash on hand.
Mark Wall, the Company's president and chief executive officer,
commented:
"This refinancing package is a very positive result for the Company
and for shareholders. To refinance in today's market with a
solution that involves no share dilution of existing shareholders,
and with a 9% coupon for US$195 million in debt addresses the
refinancing requirement cloud that has faced the Company for the
last year. Achieving an Original Issue Discount (OID) of 97%,
against the previous notes 97.992% OID is also a very good result
for the Company. The diamond market is relatively strong which
places the Company in a position to be able to further reduce debt
during 2023 while also pursuing exciting growth opportunities in
the Hearne discovery and Kennady North project. As a Company,
Mountain Province has approximately $292 million in sales in the
first nine months of 2022, with an adjusted EBITDA of approximately
$154 million in that nine months, against a current market
capitalization of some $105 million. Now that the refinancing
cloud has been lifted the company can work to have the value of the
business reflected in the Company's share price."
A special committee of independent directors of Mountain Province,
after giving due consideration to the best interests of the
Company, current market conditions and the impact of entering into
the Transaction on shareholders and the Company's other
stakeholders, unanimously concluded that the Transaction is in the
best interests of the Company and that the terms of the Transaction
are reasonable in the circumstances. The Special Committee
unanimously recommended the Transaction to the board of directors
of the Company. The Board received the recommendations and
findings of the Special Committee and, Mr. Jonathan Comerford and
Mr. Brett Desmond having declared conflicts of interest and not
attending any part of any meeting where the Transaction was
discussed and not voting on the Transaction, unanimously approved
the Transaction.
About Mountain Province
Mountain Province Diamonds Inc. is a Canadian-based resource
company listed on the Toronto Stock Exchange under the symbol
'MPVD'. The Company's registered office and its principal place of
business is 161 Bay Street, Suite 1410, P.O. Box 216, Toronto, ON,
Canada, M5J 2S1. The Company, through its wholly owned
subsidiaries 2435572 Ontario Inc. and 2435386 Ontario Inc., holds a
49% interest in the Gahcho Kue diamond mine, located in the
Northwest Territories of Canada. De Beers Canada Inc. holds the
remaining 51% interest. The Joint Arrangement between the Company
and De Beers is governed by the 2009 amended and restated Joint
Venture Agreement.
Toronto, Canada-based KPMG LLP, the Company's auditor since 1999,
issued a "going concern" qualification in its report dated March
28, 2022, citing that the Company faces liquidity challenges as a
result of liabilities with maturity dates through December 2022 and
short-term financial liquidity needs that raises substantial doubt
about its ability to continue as a going concern.
NORTH AMERICAN ACCEPTANCE: Commences Subchapter V Case
------------------------------------------------------
North American Acceptance Financial LLC filed for chapter 11
protection in the Eastern District of Louisiana. The Debtor
elected on its voluntary petition to proceed under Subchapter V of
chapter 11 of the Bankruptcy Code.
Acceptance Financial is a subprime indirect automobile finance
lender.
Acceptance Financial was organized in 2009 to both originate and
service auto loans. In 2010, Acceptance Financial obtained a
$3,000,000 line of credit with Omni Bank, now First Horizon. In
2014, the line of credit had been reduced to $100,000. However,
the Covid-19 pandemic and mandated shut downs, devasted Acceptance
Financial, which was forced to rely upon its line of credit with
First Horizon to continue operating. The company attempted to work
with its customers by offering partial payments and extensions on
their payment under the retail installment contracts. However the
company's outstanding receivables continued to climb as the federal
subsidies were used by individual customers to live on rather than
to make vehicle note payments. Additionally, the automobile
finance industry was advised not to repossess vehicles during the
pandemic. When the company was forced to file garnishments against
its customers, the courts were closed. The Debtor's line of credit
with First Horizon climbed to $2.9 million during this period of
time.
As a reaction to the pandemic, the Debtor shifted its business
strategy from originating and servicing vehicle loans to a "rent to
own" vehicle platform. This allows the Debtor to pay state and
local taxes as each rental payment is received by the Debtor, as
opposed to the Debtor paying taxes at the time of the vehicle sale
and loan origination. The Debtor owns 29 vehicles that are either
located at a used vehicle sales lot in Metairie or in the process
of repair following repossession. The Debtor's current outstanding
accounts receivable are approximately $775,000 while its accounts
receivable over 90 days old are more than $5,000,000. The First
Horizon note has matured and is payable in full.
With the filing of the bankruptcy petition, the Debtor will focus
upon collection of older outstanding accounts receivable, while it
continues to generate new contracts under the rent-to-own program.
The Debtor's monthly income generated from the rent to own program
averages $20,368 per month. The Debtor's monthly income related to
garnishment averages $7,000 per month and the Debtor believes that
this source of revenue can be substantially increased in the
future, as it believes that 80% of its older accounts receivable
will be collectable.
According to court filings, North American Acceptance estimates
between $1 million and $10 million in debt owed to 1 to 49
creditors. The petition states that funds will be available to
unsecured creditors.
About North American Acceptance
North American Acceptance Financial LLC was founded in 2002. The
Company's line of business includes providing loans to individuals
as well as financing retail sales.
North American Acceptance Financial LLC filed a petition for relief
under Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr.
E.D. La. Case No. 22-11537) on Dec. 12, 2022. In the petition
filed by Larry Verges, as managing member, the Debtor reported
assets and liabilities between $1 million and $10 million.
Ryan Richmond has been appointed as the Subchapter V Trustee.
The Debtor is represented by:
Robin R. DeLeo, Esq.
Mary S. Langston
1207 North Causeway Blvd.
Metairie, LA 70001
NORTH AMERICAN: NARCO Asbestos Trust Buyout Agreement Approved
--------------------------------------------------------------
In the adversary case styled In Re All Matters Related to North
American Refractories Company, et al. in Case No. 02-20198, as
affected by the May 24, 2013 Order Entering Final decree entered at
Doc. No. 7940, Debtors. Honeywell International, Inc., Plaintiff,
v. North American Refractories Company Personal Injury Settlement
Trust, Defendant, Misc. Case No. 15-204-TPA, Adv. No. 21-2097-TPA,
(Bankr. W.D. Pa.), Bankruptcy Judge Thomas P. Agresti for the
Western District of Pennsylvania
It has been more than 20 years since the North American
Refractories Company ("NARCO") filed a Chapter 11 bankruptcy
petition in this Court, primarily to deal with thousands of pending
and anticipated asbestos-related personal injury claims against the
company. It has been almost 15 years since a plan was confirmed in
the case calling for the creation of a trust and the issuance of a
channeling injunction to direct all of those claims to the trust
for resolution. It has been more than 9 years since a final decree
was entered and the case closed on the basis that the confirmed
plan was substantially consummated.
While the asbestos settlement trust that was thus created has been
functioning and paying claims for a number of years now, it is fair
to say that its existence has not been a tranquil one. Rather, from
almost the very inception of the trust there have been ongoing
disputes between the trustees and the party responsible for funding
the trust over how the trust should be operating and evaluating
claims.
An extensive trial was conducted in late May 2022, with numerous
exhibits admitted and numerous witnesses presented by the Parties.
The usual post-trial briefing and argument occurred thereafter, but
the Court delayed in issuing its decision at the request of the
Parties because they reported that they were engaging in settlement
discussions (as encouraged by the Court) that could potentially
resolve the matter on amicable terms. The Court was willing to go
along with this delay because it believed a negotiated settlement
would be in the best interest of all concerned, though as the
post-trial months dragged on without a settlement the Court
indicated to the Parties that it would not wait much longer before
rendering a decision. The Court therefore recently gave the Parties
an informal final deadline for proposing a settlement.
This forbearance has finally borne fruit, with the Parties having
filed a Motion for Entry of an Order (i) Approving the NARCO
Asbestos Trust Amended Buyout Agreement and Amended Agreements,
(II) Declaring the Amended Buyout Agreement is Consistent with the
Plan and Does Not Affect the NARCO Channeling Injunction, and (III)
Approving the Form and Manner of Notice of the Amended Buyout
Agreement.
The main Parties in the case are Honeywell International, Inc. and
the North American Refractories Company Personal Injury Settlement
Trust. The Trust is an asbestos settlement trust that was created
pursuant to 11 U.S.C. Section 524(g), and Honeywell is the entity
that is obliged to fund the Trust on an ongoing basis. Also
permitted to intervene in the case were the NARCO Trust Advisory
Committee and Lawrence Fitzpatrick, Future Claimants'
Representative. The TAC and the FCR represent, respectively,
current and potential future claimants against the Trust.
The proposed settlement in its basic form is much like the
"buy-out" being explored by Honeywell prior to the inception of the
current litigation. Its centerpiece is a conversion of the Trust
from its present evergreen funding structure, with the accompanying
obligation of Honeywell to make annual payments to the Trust for
its operations and claims payments and its ongoing audit and
oversight rights, to one of the more traditional fully-funded
variety, in exchange for a one-time buy-out payment by Honeywell.
The "base" amount of that payment, would be $1.325 billion. Other
significant features of the Agreement include the following:
(a) Closing on the settlement shall occur as soon as practically
possible following January 1, 2023 once certain conditions
precedent have been met, including but not limited to this Court's
approval of the Motion.
(b) Honeywell will make the buyout payment to the Trust at the
time of the closing
(c) The Trust's current equity holding in HWI will be monetized,
and the base amount figure for the payout may be adjusted depending
on dividends or sale proceeds realized in that process, with such
adjustment to result in a reduction of the base amount if it occurs
prior to the closing and a credit and payment back to Honeywell if
it occurs thereafter.
(d) Honeywell will continue to fund the Trust's operational
expenses until the closing and will continue to fund claim payments
made by the Trust, though for the dollar amount of Trust claims
entered into a payment queue after March 31, 2023 Honeywell will
have a dollar for dollar credit against the buyout amount.
(e) The TDP, Trust Agreement, and Trust Bylaws will be amended
as indicated and will automatically become effective as of the
closing.
(f) The Parties will exchange releases that will become
effective as of the closing.
(g) The Parties will cooperate in various respects to carry out
the Agreement and related matters.
(h) The Bankruptcy Court will have exclusive jurisdiction over
any claim or dispute arising out of the Agreement.
(i) This adversary proceeding will be closed by stipulation of
the parties upon approval of the Agreement.38
(j) The Parties seek confirmation that the Section 524(g)
channeling injunction previously issued by the Court remains in
place and is unaffected by the Agreement.
The Court finds that an approval of the settlement would benefit
the claimants in a number of ways. The termination of the present
litigation, with a good chance of avoiding any future litigation as
well, would free-up the Trustees to concentrate solely on the
operation of the Trust. Honeywell's exit from the picture would
also mean the elimination of the one-way mirror and the Honeywell
audit/oversight rights, current features that require time and
attention from the Trustees and other Trust personnel even during
times when there is no active ongoing litigation.
The evidence generally shows that attempts by the Trustees to
implement policies which would appear to be favorable to claimants
have been challenged by Honeywell, so it seems natural to conclude
that if Honeywell is no longer involved the claimants will benefit.
Consideration of whether the settlement would be in the best
interests of the claimant/creditors is considerably aided by the
fact that FCR and TAC, who represent these people, are themselves
Intervenors in the case. Both the FCR and TAC participated in the
negotiations leading up to the settlement and both have expressed
their support of the settlement.
The Court believes that the settlement is an appropriate resolution
of what has seemed at times to be an intractable situation.
However, before finally concluding such, another matter must be
considered, that is, the Response filed by the Certain London
Market Insurance Companies. While not per se objecting to the
proposed settlement, the Insurers raise two issues that they would
like to see addressed in any order granting the Motion and
approving the settlement. The first issue relates to the concern
that the Insurers have that the release Honeywell is granting to
the Trust as part of the settlement could be construed as effecting
a release of claims that the Insurers may have against the Trust,
thereby constituting a non-consensual third-party release to which
they object. The second issue raised by the Insurers concerned a
potential future dispute in another forum as to the use of
information that Honeywell obtains from the Trust.
The Court further declares that: "Upon agreement of the Parties and
the London Market Insurers in resolution of the relevant issues
raised in the Response, notwithstanding anything to the contrary in
the Amended Buyout Agreement or this Order, those certain London
Market Insurers who filed the Response do not release any claims or
rights they have arising out of the Confidential Settlement
Agreement and Release between London Market Insurers and Honeywell
dated February 10, 2004, as subsequently amended."
A full-text copy of the Order dated Dec. 8, 2022, is available at
https://tinyurl.com/h8mfhezm from Leagle.com.
About North American Refractories Co.
Based in Pittsburgh, Pennsylvania, North American Refractories
Company manufactured and sold refractory products.
The Company and its affiliates sought Chapter 11 protection on Jan.
4, 2002 (Bankr. W.D. Pa. Case No. 02-20198) after suffering a slump
in the domestic economy and encountering an overwhelming number of
claims from individuals asserting injuries or illnesses caused by
exposure to asbestos containing products it manufactured. The
Company reported $27.5 billion in assets and $18.6 billion in
liabilities at the time of the filing.
The Hon. Judith K. Fitzgerald confirmed a Third Amended Plan of
Reorganization filed by North American Refractories Company and its
debtor-affiliates, I-Tec Holding Corp., Intertec Company, and
Tri-Star Refractories, Inc., on Sept. 24, 2007. That plan estimated
that unsecured non-asbestos creditors would recover about 90
cents-on-the-dollar. Asbestos claims were channeled to a 524(g)
trust funded by Honeywell International Inc. and 79% of the stock
of the Reorganized Debtor.
James J. Restivo, Jr., Esq., Robert P. Simmons, Esq., and David
Ziegler, Esq., at Reed Smith LLP represents the Debtor. Kroll
Zolfo Cooper LLC is the Debtors' bankruptcy consultants and special
financial advisors. The Official Committee of Unsecured Creditors
is represented by McGuire Woods, LLP. KPMG, LLP, is the Creditors
Committee's financial advisor. The Asbestos Claimants Committee is
represented by attorneys at Caplin & Drysdale, Chartered and
Campbell & Levine, LLC. L. Tersigni Consulting, PC was the
Asbestos Committee's financial advisor.
Lawrence Fitzpatrick was appointed as the Future Asbestos Claimants
Representative. Mr. Fitzpatrick is represented by attorneys at
Young Conaway Stargatt & Taylor LLP and Meyer, Unkovic & Scott LLP.
O'MY FOODS LLC: Dairy-Free Desserts Maker Files Subchapter V Case
-----------------------------------------------------------------
O'MY Foods LLC filed for chapter 11 protection in the Eastern
District of Virginia.
Originally utilizing the name Greater Good Foods, LLC, since its
inception in February 2017, O'MY Foods, LLC, has established itself
as an innovator in the dairy-free frozen dessert world. From the
vision of its co-founders Allison Monette and Julie Bishop, O'MY
has developed, created and marketed 12 flavors of dairy free, plant
based frozen pints that have been shelved in all 50 states and sold
through Walmart and Kroger stores.
Indeed, O'MY has enjoyed success in the plant-based frozen dessert
arena.
Unfortunately, the success has been hampered by significant
competitive and category obstacles exacerbated by ever increasing
distribution costs. While inventory position has remained strong,
seasonally smaller orders coupled with colossal freight charges
have severely strained ongoing operations, even as O’MY has
shrunk overhead to a bare minimum.
Following on the heels of the significant reduction of expenses,
O'MY is now entering its slower sales season, and in an effort to
be proactive and preserve its going concern value and potential for
partnership or acquisition, O'MY has sought bankruptcy protection
through Subchapter V of Chapter 11.
O'MY believes that this course of action will provide it breathing
room from mounting operational costs and simultaneously strengthen
its opportunities for acquisition or partnership with others in the
frozen dessert or other plant-based production space for the
benefit of all of its stakeholders.
According to court filings, O'MY estimates $500,000 and $1 million
in debt owed to 50 to 99 creditors. The petition states that funds
will be available to unsecured creditors.
About O'MY Foods LLC
O'MY Foods LLC -- https://www.omygelato.com/ -- is a frozen dessert
supplier in Richmond, Virginia.
O'MY Foods LLC filed a petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. E.D. Va. Case No. 22-33509) on Dec. 12,
2022. In the petition filed by Allison Monette, as chief executive
officer, the Debtor reported assets between $500,000 and $1 million
and liabilities between $1 million and $10 million.
On Dec. 13, 2022, Peter J. Barrett, Esquire, was appointed as the
Chapter 11 Subchapter V trustee pursuant to Sec. 1183(a) of the
Bankruptcy Code.
The Debtor is represented by:
Lynn L. Tavenner, Esq.
Tavenner & Beran, PLC
805 Glenburnie Rd. STE 18518
Richmond, VA 23226
Tel: (804) 783-8300
Email: ltavenner@tb-lawfirm.com
PACIFIC PLEASANT: Unsecureds to Get Share of Income for 3 Years
---------------------------------------------------------------
Pacific Pleasant Investment, LLC filed with the U.S. Bankruptcy
Court for the Northern District of Mississippi a Subchapter V Plan
of Reorganization dated December 13, 2022.
The Debtor owns a convenience store and gasoline facility located
at 3278 Hwy 309 North, Byhalia, Mississippi 38611. The Debtor was
formed as a limited liability company and its operating agreement
was entered into on February 13, 2017.
It was created by Nrupesh Patel as the sole member. The operating
agreement was executed by Mr. Patel as the member. The gasoline
sales at the Debtor, as well as the inside sales and the general
operations of the Debtor were performed and conducted, by an entity
named Pacific Petroleum, LLC.
The Debtor also received a loan from Vikram Patel which has
apparently been assigned to an entity that he, on information and
belief, owns or controls, known as Premier Capital Investment
Group, LLC. The documents evidencing the Vikram Loan are executed
solely by Vikram, claiming he had corporate authority from the
Debtor to execute the promissory note and any related documents.
The Debtor vigorously disputes that claim.
The Debtor and Vikram have engaged in claim litigation and there
was an adversary pending in this Court involving claims between and
among the Debtor, its related affiliates of 305 Petroleum, Inc.,
Pleasant Point Investment, LLC, and Premier Petroleum Investment,
LLC, Vikram, and other parties. Those matters were settled.
Class 5 consists of General Unsecured Creditors. The Debtor will
pay to the general, unsecured creditors its projected disposable
income for the 3-year life of the Plan.
The Debtor's equity security holder will maintain his ownership of
the Debtor.
The Debtor's means of execution of the Plan will be provided from
the operation of its convenience store. This income will provide
the Debtor the ability to pay creditors with which it can fund the
Plan.
A full-text copy of the Subchapter V Plan dated December 13, 2022,
is available at https://bit.ly/3Ga2GXi from PacerMonitor.com at no
charge.
Counsel for the Debtor:
Craig M. Geno
LAW OFFICES OF CRAIG M. GENO, PLLC
587 Highland Colony Parkway
Ridgeland, MS 39157
Tel: 601-427-0048
Fax: 601-427-0050
E-mail: cmgeno@cmgenolaw.com
About Pacific Pleasant Investment
Pacific Pleasant Investment, LLC, owns a convenience store and
gasoline facility located at 3278 Hwy. 309 North, Byhalia,
Mississippi.
Pacific Pleasant Investment filed a Chapter 11 petition (Bankr.
N.D. Miss. Case No. 20-11594) on April 20, 2020. In the petition
signed by Nrupesh Patel, manager, the Debtor was estimated to have
$1 million to $10 million in both assets and liabilities. Craig M.
Geno, Esq., at the Law Offices Of Craig M. Geno, PLLC, serves as
bankruptcy counsel to the Debtor.
PENTA STATE LLC: U.S. Trustee Unable to Appoint Committee
---------------------------------------------------------
The U.S. Trustee for Region 7 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 cases of Penta State, LLC and its affiliates.
About Penta State
Penta State, LLC is a Tomball, Texas-based company formed by Dr.
Saad Alsaab. Penta State units, Elite Medical Laboratory
Solutions, LLC and Graham Tomball, LLC (each doing business as DIAX
Labs), operate two independent laboratories based near Houston,
Texas. DIAX Labs offers a suite of services, including (a)
toxicology, (b) molecular diagnostics, (c) genetics, and (d) blood
and wellness testing for patients with commercial insurance and
Medicare beneficiaries.
Penta State, along with affiliates Nationwide Laboratory Partners
LLC, Elite Medical Laboratory Solutions, Graham Tomball, and Zayd
Assets, LLC, filed for Chapter 11 bankruptcy protection (Bankr.
S.D. Texas Lead Case No. 22-90331) on Oct. 11, 2022. Amit Gupta,
president of Penta State, signed the petition. In the petition,
Penta State reported $10 million to $50 million in both assets and
liabilities.
Judge David R. Jones oversees the cases.
Munsch Hardt Kopf & Harr, P.C. and Spencer Fane, LLP serve as the
Debtors' bankruptcy counsel and special counsel, respectively.
PENTA STATE: Court OKs Interim Cash Collateral Access
-----------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas,
Houston Division, authorized Penta State LLC and affiliates to use
cash collateral on an interim basis.
The Debtor requires the use of cash collateral to preserve the
value of their business and assets and to prevent immediate and
irreparable harm to the Debtors' estates.
The Debtor's Secured Lender is Fifth Third Bank, National
Association.
As of the Petition Date, the Debtors and the Secured Lender were
parties to the Credit Agreement, dated as of March 28, 2022,
pursuant to which the Secured Lender made a term loan to the
Debtors in the aggregate principal amount of $23 million and agreed
to make available to the Debtors advances under a revolving loan
facility in an aggregate amount of up to $5 million as evidenced by
that certain Term Loan Promissory Note and Revolving Credit
Promissory Note.
As of the Petition Date, the Debtors were indebted to the Secured
Lender in the aggregate amount of not less than $27.424 million,
consisting of principal plus accrued and unpaid interest,
penalties, fees, expenses, and reimbursements.
Prior to the Petition Date, the Debtors drew the total available
amount under the Revolver and deposited the proceeds in Bank of
America account number ending 6989. Prior to the date of the Term
Loan, the Debtors had approximately $350,000 in Bank of America
account number ending 1419. The Revolver Proceeds and the Zayd Cash
are not subject to a control agreement required to perfect the lien
granted in them pursuant to the Security Agreement.
As adequate protection, the Secured Lender is granted a valid,
binding, continuing, enforceable, fully-perfected, non-voidable
first priority lien and replacement lien on, and security interest
in, all of the Debtors' now owned and hereafter acquired real and
personal property, tangible and intangible assets, and rights of
any kind or nature.
The Adequate Protection Liens are deemed perfected without the
necessity of the execution (or recordation or other filing) by the
Debtors of security agreements, control agreements, pledge
agreements, financing statements, mortgages, or other similar
documents.
The Debtors' right to use cash will terminate (subject only to the
Carve Out) without further notice or court proceeding through the
earlier of January 6, 2022.
The termination events include:
a. Failure of the Debtors to comply with any material
provisions of the Proposed Interim Order;
b. The use of the Debtors' Cash for any purpose not authorized
by the Proposed Interim Order or in excess of the limitations set
forth in the Proposed Interim Order;
c. An order is entered reversing, amending, supplementing,
staying, vacating, or otherwise modifying the Proposed Interim
Order without the written consent of the Secured Lender, or the
Proposed Interim Order ceases to be in full force and effect for
any reason.
A final hearing on the matter is set for January 5, 2023, at 10
a.m.
A copy of the order is available at https://bit.ly/3VfWiC2 from
PacerMonitor.com.
About Penta State
Penta State, LLC is a Tomball, Texas-based company formed by Dr.
Saad Alsaab. Penta State units, Elite Medical Laboratory
Solutions, LLC and Graham Tomball, LLC (each doing business as DIAX
Labs), operate two independent laboratories based near Houston,
Texas. DIAX Labs offers a suite of services, including (a)
toxicology, (b) molecular diagnostics, (c) genetics, and (d) blood
and wellness testing for patients with commercial insurance and
Medicare beneficiaries.
Penta State, along with affiliates Nationwide Laboratory Partners
LLC, Elite Medical Laboratory Solutions, Graham Tomball, and Zayd
Assets, LLC, filed for Chapter 11 bankruptcy protection (Bankr.
S.D. Texas Lead Case No. 22-90331) on Oct. 11, 2022. Amit Gupta,
president of Penta State, signed the petition. In the petition,
Penta State reported $10 million to $50 million in both assets and
liabilities.
Judge David R. Jones oversees the cases.
Munsch Hardt Kopf & Harr, P.C. and Spencer Fane, LLP serve as
theDebtors' bankruptcy counsel and special counsel, respectively.
PHASEBIO PHARMACEUTICALS: Committee Taps McDermott as Legal Counsel
-------------------------------------------------------------------
The official committee of unsecured creditors of PhaseBio
Pharmaceuticals, Inc. seeks approval from the U.S. Bankruptcy Court
for the District of Delaware to employ McDermott Will & Emery, LLP
as its legal counsel.
The firm's services include:
a. advising the committee with respect to its rights, duties,
and powers in the Debtor's Chapter 11 case;
b. assisting and advising the committee in its consultations
and negotiations with the Debtor and other parties-in-interest
relative to the administration of the case;
c. soliciting information from and providing information to
the general creditor body;
d. assisting the committee in analyzing the claims of
creditors and the Debtor's capital structure and in negotiating
with holders of claims and equity interests;
e. assisting the committee in its investigation of the acts,
conduct, assets, liabilities and financial condition of the Debtor
and its insiders, and of the operation of the Debtor's business;
f. assisting the committee in its analysis of, and
negotiations with, the Debtor or any third-party concerning matters
related to, among other things, the assumption or rejection of
certain leases of non-residential real property and executory
contracts, the sale or other disposition of the Debtor's assets,
financing of other transactions, and the terms of a plan of
reorganization for the Debtor, disclosure statement and related
plan documents;
g. assisting and advising the committee as to its
communications with the general creditor body regarding significant
matters in the case;
h. representing the committee at all hearings and other
proceedings before the court;
i. reviewing and analyzing applications, orders, statements of
operations, and schedules filed with the court, and advising the
committee as to their propriety and, to the extent deemed
appropriate by the committee, supporting, joining or objecting
thereto;
j. advising and assisting the committee with respect to any
legislative, regulatory, or governmental activities;
k. assisting the committee in its review and analysis of the
Debtor's various agreements;
l. preparing pleadings;
m. investigating and analyzing any claims belonging to the
Debtor's estate; and
n. other legal services.
The firm will charge these hourly fees:
Partners $945 - $2,120
Senior Counsel $755 - $1,650
Employee Counsel $525 - $1,530
Associates $615 - $905
Paraprofessionals $205 - $665
As disclosed in court filings, McDermott neither represents nor
holds any interest adverse to the Debtor's estate or creditors in
the matters upon which it is to be engaged.
The firm can be reached through:
Felicia Gerber Perlman, Esq.
Bradley Thomas Giordano, Esq.
Emily C. Keil, Esq.
McDermott Will & Emery, LLP
444 West Lake Street, Suite 4000
Chicago, IL 60606
Telephone: (312) 372-2000
Facsimile: (312) 984-7700
Email: fperlman@mwe.com
bgiordano@mwe.com
ekeil@mwe.com
About PhaseBio Pharmaceuticals
PhaseBio Pharmaceuticals, Inc. -- https://www.phasebio.com/ -- is
focused on the development and commercialization of novel therapies
to treat orphan diseases, with an initial focus on cardiopulmonary
indications. It is based in Malvern, Pa.
PhaseBio Pharmaceuticals filed a petition for relief under Chapter
11 of the Bankruptcy Code (Bankr. D. Del. Case No. 22-10995) on
Oct. 24, 2022. In the petition filed by its chief executive
officer, Jonathan Mow, the Debtor reported $17,970,000 in assets
and $21,320,000 in debt as of Aug. 31, 2022.
Judge Laurie Selber Silverstein oversees the case.
The Debtor tapped Cooley LLP as lead bankruptcy counsel; Richards,
Layton & Finger, PA as Delaware bankruptcy counsel;
SierraConstellation Partners, LLC as financial advisor; KPMG, LLP
as tax consultant; and Miller Buckfire & Co. as investment banker.
Omni Agent Solutions is the claims, noticing and administrative
agent.
The U.S. Trustee for Region 3 appointed an official committee of
unsecured creditors in the Debtor's case on Nov. 3, 2022. The
committee is represented by McDermott Will & Emery, LLP.
PIPELINE HEALTH: PCO Files First Interim Report
-----------------------------------------------
Susan Goodman, patient care ombudsman for Pipeline Health Systems,
LLC and its affiliates, filed with the U.S. Bankruptcy Court for
the Southern District of Texas a first interim report regarding the
quality of patient care provided at the White Rock Medical Center
campus.
The PCO engaged in pre-visit, introductory calls with the Chief
Executive Office. Based on these calls, the PCO scheduled the White
Rock site visit as the final visit in the series of initial site
visits.
In her report, the PCO noted continued supplies and linens on the
units. Consoles for collection of documents for shredding were in
place. The hospital was clean. Hand gel dispensers were ubiquitous,
and the PCO did not experience outages as she moved throughout the
facility.
The PCO reported that the White Rock team members expressed
concerns regarding the uncertainty of their path out of bankruptcy
-- wondering if they would be sold or remain part of the Pipeline
family. Because White Rock was part of the October 2020 EHR
conversion to Cerner with the Chicago locations, the sale of the
Chicago locations has added further uncertainty relative to White
Rock's future EHR.
Like patients and the CSO, the staff reported frustration with
receiving several (four to five) legal mailings related to the case
causing alarm for their family members who then questioned the
security of continued employment and benefits. While service line
leadership largely denied staff departures associated with the
bankruptcy filing, one department believed that a post-petition
resignation was related to the uncertainty created by the filing.
Given that she did not see any material or substantial decline in
care delivery, the PCO is comfortable maintaining the maximum
period between site visits and reports so long as the operations
stay consistent with what was observed during the site visit. The
PCO will remain engaged with the COO, CNO, and DOQ team members to
monitor key metrics in the interim reporting period.
A copy of the first ombudsman report is available for free at
https://bit.ly/3Yx29Wf from PacerMonitor.com.
The Ombudsman may be reached at:
Susan N. Goodman, Esq.
Pivot Health Law, LLC
P.O. Box 69734
Oro Valley, AZ 85737
Tel: (520) 744-7061
Email: sgoodman@pivothealthaz.com
About Pipeline Health System
Pipeline Health Systems, LLC is an independent, community-focused
healthcare network that offers a wide range of medical services to
the communities it serves, including maternity care, cancer
treatment, behavioral health, rehabilitation, general surgery, and
hospice care. Headquartered in El Segundo, California, Pipeline's
operations include seven safety net hospitals across California,
Texas, and Illinois, with approximately 310 physicians and over
1,150 beds to serve patients, and a company-wide workforce of over
4,200.
Pipeline Health Systems and its affiliates sought Chapter 11
protection (S.D. Texas Lead Case No. 22-90291) on Oct. 2, 2022. In
the petition signed by Andrei Soran, authorized signatory, Pipeline
Health Systems disclosed $500 million to $1 billion in assets and
liabilities.
Judge Marvin Isgur oversees the cases.
The Debtors tapped Kirkland & Ellis, LLP as general bankruptcy
counsel; Jackson Walker, LLP as local bankruptcy counsel; Ankura
Consulting Group, LLC as restructuring advisor; and Jefferies, LLC,
as financial advisor and investment banker. Epiq Corporate
Restructuring, LLC, is the claims agent.
The U.S. Trustee for Region 7 appointed an official committee of
unsecured creditors in the Debtors' bankruptcy cases. The committee
tapped Akin Gump Strauss Hauer & Feld, LLP as legal counsel and FTI
Consulting, Inc. as financial advisor.
Susan Nielsen Goodman, the patient care ombudsman appointed in the
Debtors' cases, is represented by Crowe & Dunlevy, P.C.
PLEASANT POINT: Unsecureds to Get Share of Income for 3 Years
-------------------------------------------------------------
Pleasant Point Investment, LLC filed with the U.S. Bankruptcy Court
for the Northern District of Mississippi a Subchapter V Plan of
Reorganization dated December 13, 2022.
The Debtor owns and operates a convenience store and accompanying
gasoline station at 5337 Hwy 72 in Mount Pleasant, Mississippi
38649. It sells gasoline and typical food and related items inside
the store.
The Debtor was formed as a limited liability company effective June
5, 2015. It was created by Nrupesh Patel ("Mr. Patel") and his
spouse, Tejal Petal ("Mrs. Patel"), who each own 50% of the equity
of the Debtor. The operating agreement of the Debtor was executed
by Mr. Patel and Mrs. Patel as members.
The Debtor also received a loan from Vikram Patel which has
apparently been assigned to an entity that he, on information and
belief, owns or controls, known as Premier Capital Investment
Group, LLC. The documents evidencing the Vikram Loan are executed
solely by Vikram, claiming he had corporate authority from the
Debtor to execute the promissory note and any related documents.
The Debtor vigorously disputes that claim.
The Debtor and Vikram have engaged in claim litigation and there
was an adversary pending in this Court involving claims between and
among the Debtor, its related affiliates of 305 Petroleum, Inc.,
Pacific Pleasant Investment, LLC, and Premier Petroleum Investment,
LLC, Vikram, and other parties. Those matters were settled.
Class 5 consists of General Unsecured Creditors. The Debtor will
pay to the general, unsecured creditors its projected disposable
income for the 3-year life of the Plan.
The Debtor's equity security holder will maintain his ownership of
the Debtor.
The Debtor's means of execution of the Plan will be provided from
the operation of its convenience store. This income will provide
the Debtor the ability to pay creditors with which it can fund the
Plan.
A full-text copy of the Subchapter V Plan dated December 13, 2022,
is available at https://bit.ly/3hC1By5 from PacerMonitor.com at no
charge.
Counsel for the Debtor:
Craig M. Geno
LAW OFFICES OF CRAIG M. GENO, PLLC
587 Highland Colony Parkway
Ridgeland, MS 39157
Tel: 601-427-0048
Fax: 601-427-0050
E-mail: cmgeno@cmgenolaw.com
About Pleasant Point Investment
Pleasant Point Investment, LLC, owns and operates a convenience
store and accompanying gasoline station at 5337 Hwy. 72 in Mount
Pleasant, Mississippi. The company was created by Nrupesh Patel
and his spouse Tejal Patel.
Pleasant Point Investment filed a Chapter 11 petition (Bankr. N.D.
Miss. Case No. 20-11595) on April 20, 2020. In the petition signed
by Nrupesh Patel, manager, the Debtor was estimated to have $1
million to $10 million in both assets and liabilities. Craig M.
Geno, Esq., at the Law Offices Of Craig M. Geno, PLLC, serves as
bankruptcy counsel.
POLICY SERVICES: Transamerica Partial Motion to Dismiss Granted
---------------------------------------------------------------
In the case styled TuYo Holdings, LLC, Plaintiff, v. Transamerica
Life Insurance Company, Defendant, Case No. SA-22-CV-00845-JKP,
(W.D. Tex.), District Judge Jason Pulliam for the Western District
of Texas grants the Partial Motion to Dismiss filed by Transamerica
Life Insurance Company.
This case arises from Transamerica's termination of a universal
life insurance policy insuring the life of Barry Siegal. In its
First Amended Complaint, TuYo Holdings, LLC, alleges that in 2013,
Mr. Siegal sold all rights to the Policy to a third-party
purchaser, Settlement Group Inc., which in turn transferred all
rights to Dover Capital Strategies, LLC. In 2015, Dover Capital
Strategies sold all rights under the Policy to Policy Services,
Inc. Policy Services, then, notified Transamerica that it was the
new owner of the Policy and updated the address for notification
purposes. Transamerica acknowledged Policy Services as the owner of
the Policy and directed correspondence to its address.
In late 2020, Transamerica determined the Policy had entered a
grace period, in which additional premiums became due to keep the
Policy active. Transamerica did not send a grace-period notice to
Policy Services during January, February, or March of 2021. As a
result, Policy Services was unaware the Policy entered a grace
period and additional premiums were due to keep the Policy active.
Transamerica delivered a Notice of Termination to Policy Services
dated March 16, 2021, informing Policy Services the Policy "lapsed"
due to failure to pay the required premium. Transamerica then
extended the due date to June 4, 2021, for Policy Services to pay
the Policy premiums to preserve coverage. Policy Services sent
$17,792 to Transamerica to take the Policy "out of grace" and
prevent lapse. However, Transamerica rejected the payment and
maintained the Policy lapsed, contending the Extension Letter
extended the due date to April 2, 2021, and Policy Services failed
to make the appropriate premium payment prior to the extended
deadline. Policy Services entered Chapter 7 bankruptcy sometime
after late 2020.
On March 15, 2022, a year later, TuYo entered into a purchase and
sale agreement with Policy Services' bankruptcy trustee to acquire
"all right, title, and interest, to include legal remedies, in the
Policy", and the bankruptcy court approved the purchase and sale
agreement on April 12, 2022. Following this purchase, TuYo asserts
it became an assignee of all of Policy Services rights and legal
remedies under the Policy, including all potential causes of
action.
TuYo brought this action seeking Declaratory Judgment declaring
Transamerica wrongfully terminated the Policy, and TuYo is entitled
to make premium payments to bring the Policy current. TuYo also
asserts causes of action for breach of contract, deceptive
insurance practices in violation of Texas Insurance Code, unjust
enrichment, promissory estoppel, and contract by estoppel. Pursuant
to Federal Rule of Civil Procedure 12(b)(6), Transamerica filed
this Partial Motion to Dismiss the causes of action of deceptive
insurance practices, unjust enrichment, promissory estoppel, and
contract by estoppel. In its Response, TuYo stipulates to dismissal
of the contract by estoppel cause of action.
Transamerica contends that the Court should dismiss TuYo's cause of
action asserting violation of Chapter 541 of the Texas Insurance
Code (deceptive insurance practices) because this cause of action
may only be asserted by Policy Services and cannot be assigned,
thus, it must fail as a matter of law.
Recognizing the authority and reasoning in PPG Industries, Inc. v.
JMB/Houston Ctrs. Ptrs. Ltd., 146 S.W.3d 79, 87 (Tex. 2004), the
Court concludes causes of action arising under the Texas Insurance
Code may not be assigned. In case of PPG Industries, the Texas
Supreme Court held that "causes of action arising from the Texas
Deceptive Trade Practices Act, generally, cannot be assigned by an
aggrieved consumer because the cause of action is personal and
punitive, not property." The Court finds that the (a) Insurance
Code remedies are personal and punitive in nature, (b) the Texas
Insurance Code contains no provision for assignability, and (c)
Texas Insurance Code damages are intended to encourage suits by
aggrieved consumers, only.
Here, TuYo seeks to engage in a secondary market of assignment of
causes of action arising under the Texas Insurance Code as property
in anticipation of litigation for commercial profit, which was
unequivocally prohibited in PPG Industries. The Court finds that
TuYo lacks a cognizable legal theory to state a claim for violation
of the Texas Insurance Code as an admitted assignee of the rights
and interest, including legal remedy, held by Policy Services. For
these reasons, the Court dismisses this cause of action for failure
to state a claim.
Transamerica contends that the Court should dismiss TuYo's unjust
enrichment cause of action because it cannot recover under this
equitable theory when the parties' dispute is governed by a valid
contract and TuYo holds an adequate legal remedy for breach of this
contract.
Unjust enrichment is not an independent cause of action but is a
quasi-contractual cause of action based upon the absence of an
express agreement. Consequently, there can be no unjust enrichment
claim when a valid, express contract covers the subject matter of
the parties' dispute. Here, TuYo does not dispute the validity of
the Policy contract, and its contentions all rely upon its
validity. To the extent TuYo contends its unjust enrichment cause
of action arises out of Transamerica's extension of the premium due
date in the Extension Letter, and therefore, falls outside the
terms of the initial contract, this argument must fail.
The Court holds that the parties' dispute, and the subject matter
of this action, is still governed by the terms of the Policy. In
addition, the Court finds that TuYo admits this "lawsuit arises out
of, and in response to, the actions and omissions of Transamerica
with respect to [the Policy]. . . this lawsuit arises out
[Transamerica's] wrongful termination of the Policy, and wrongful
refusal to reinstate the Policy during the contractually provided
grace period without full underwriting." Accordingly, the Court
concludes that TuYo cannot assert the equitable cause of action of
unjust enrichment, and therefore, it will be dismissed.
For the same reasons as cited for dismissal of the unjust
enrichment cause of action, Transamerica contends TuYo's promissory
estoppel cause of action should by dismissed. To invoke promissory
estoppel, the promisee must allege and show the promisor promised
to sign a written agreement that complied with the statute of
frauds.
In this case, TuYo does not allege Transamerica promised to sign an
existing written agreement memorializing the promise to modify the
Policy. Instead, TuYo alleges the Extension Letter was the promise
to modify the Policy. The Court finds and concludes that the
promissory estoppel cause of action must be dismissed because TuYo
does not allege Transamerica promised to sign an existing written
agreement modifying the due date of the premium.
Further, "the promissory-estoppel doctrine presumes no contract
exists." As the Court previously noted, TuYo does not dispute the
validity of the Policy, and its assertions all rely upon its
validity. The Court finds that the cause of action for promissory
estoppel does not exist because a valid contract governs the
subject matter of the parties' dispute, and therefore, must be
dismissed.
A full-text copy of the Memorandum Opinion and Order dated Dec. 6,
2022, is available at https://tinyurl.com/398yd734 from
Leagle.com.
PREMIER GRILLING: Court OKs Cash Access, $500,000 DIP Loan
----------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Texas,
Sherman Division, authorized Premier Grilling LLC and Premier
Grilling Outdoors LLC to use cash collateral on an interim basis
and obtain secured credit from 13 Horizon Point LLC.
Over the past several years, the Debtors' management have developed
a close relationship with the owner of 13 Horizon Point. The lender
and its owner have attempted to assist the Debtors through their
financial difficulties by funding several million dollars in
working capital to the Debtors on an unsecured basis. 13 Horizon
Point wishes to continue in its efforts to assist the Debtors with
their working capital needs and has agreed to loan the Debtors up
to $500,000 in working capital. The funds are needed by the Debtors
to fill customer orders, which the Debtors estimate total
approximately $350,000.
The $350,000 will be funded within five days of entry of an interim
order and with such remaining amounts to be funded after such
Interim Order has become a final order and within five days of the
Debtors' written request. Amounts funded by the Lender on the Loan
will accrue interest at a rate of 6% per annum.
Accrued interest on the Principal Amount will be payable in monthly
installments, with the first such Interest Payment commencing on
April 1, 2022. Each Interest Payment is due by the 1st day of each
month. The Loan will mature on December 31, 2023, at which point
the Principal Amount and any accrued unpaid interest will be paid
in full.
The Court said, upon funding, the Lender is granted a
first-priority lien on all assets of the Borrowers to secure the
amounts owed under the Agreement, subordinate only to (i) valid,
senior, perfected, and unavoidable liens existing as of the
Petition Date; (ii) valid statutory liens of any ad valorem taxing
authority, and (iii) adequate protection liens granted to any
secured creditor pursuant to a cash collateral order entered in the
Bankruptcy Case.
The liens contemplated by the Agreement and granted will be deemed
perfected upon filing in the above-captioned Bankruptcy Cases a
notice indicating that the Agreement has been duly executed of
record and that the initial $350,000 funding has occurred.
In 2019, the Debtors' current management discovered that a former
comptroller had not been keeping accurate books and records or
paying sales and payroll taxes, creating a liquidity and debt
crisis for the companies. While the companies attempted to overcome
the issues created by the former comptroller by obtaining loans
from various friends and colleagues, they also began using merchant
cash advance agreements to create liquidity for their operations.
The rates, fees, and other charges levied by the MCA companies have
since overwhelmed and offset the liquidity the Debtors intended to
realize, causing a cash shortfall that became unsustainable.
In the weeks leading up to their bankruptcy filing and as part of
their restructuring efforts, Debtor PG closed its Plano and
McKinney stores and will continue operating only its Frisco
flagship store going forward. Debtor PG will reject its store
leases in Plano and McKinney as part of its reorganization.
The Debtor PG's primary secured creditors are Chase Bank, Veritex
Community Bank, the Small Business Administration, and various
MCAs. Chase Bank holds the senior secured lien against all of the
Debtor PG's assets and Vertiex Community Bank holds the second lien
position. Certain of the MCAs have filed UCC financing statements
with the Texas Secretary of State, but the Debtor PG does not
believe that the MCAs hold liens against any of its assets due to
the value of the Debtor PG's assets and the under-secured position
of the senior lien holders.
Likewise, Debtor PGO's secured creditors are comprised of various
MCAs that purportedly purchased Debtor PGO's "future" accounts
receivable. However, PGO's believes that its subcontractor and
material provider creditors hold property interests in PGO's
accounts receivable superior to any interest of an MCA under
Chapter 162 of the Texas Property Code.
The final hearing on the matter is set for December 28, 2022 at 10
a.m.
A copy of the motion is available at https://bit.ly/3V4BKfz from
PacerMonitor.com.
A copy of the order is available at https://bit.ly/3VeOSyJ from
PacerMonitor.com.
About Premier Grilling LLC
Premier Grilling LLC is a grill store in Texas offering BBQ
smokers, charcoal grills, flat- top grills & griddles, gas grills,
infrared grills, kamado grills, and pellet grills.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Tex. Case No. 22-41727) on December 9,
2022. In the petition signed by Brian Rush as CEO of Premier
Grilling LLC and Dan Ferguson as president of Premier Grilling
Outdoors, the Debtor disclosed up to $10 million in both assets and
liabilities.
Judge Brenda T. Rhoades oversees the case.
Melissa S. Hayward, Esq., at Hayward PLLC, is the Debtor's legal
counsel.
PREMIER GRILLING: Starts Chapter 11 Bankruptcy Process
------------------------------------------------------
Premier Grilling LLC and affiliate Premier Grilling Outdoors LLC
filed for chapter 11 protection in the Eastern District of Texas.
The Debtors are privately-held Texas limited liability companies
that operate under the "Premier Grilling" brand. Premier Grilling,
through Debtors PG and PGO, is a well-established unique outdoor
living company in North Texas that offers a wide array of outdoor
products, including the finest stainless steel natural gas grills,
grill components and accessories, wood fire brick ovens, patio
furniture, hearth products, and BBQ smokers for outdoor cooking and
entertainment spaces.
Prior to its chapter 11 filing, Debtor PG operated retail stores in
Frisco, McKinney, and Plano along with a website and other
e-commerce accounts through which PG sells outdoor grilling
products online to customers across the country. PG also offers
grilling and cooking classes and presentations at its retail
locations by its own expert pit masters along with celebrity chefs
and BBQ pit masters from all over the country.
Debtor PGO is the design and construction side of the Premier
Grilling brand and has provided luxury outdoor kitchens and
backyard retreats for over 4,000 customers throughout the DFW
metroplex for more than a decade.
In 2019, the Debtors' current management discovered that a former
comptroller had not been keeping accurate books and records or
paying sales and payroll taxes, creating a liquidity and debt
crisis for the companies. While the companies attempted to
overcome the issues created by the former comptroller by obtaining
loans from various friends and colleagues, they also began using
merchant cash advance ("MCA") agreements to create liquidity for
their operations. The rates, fees, and other charges levied by the
MCA companies have since overwhelmed and offset the liquidity the
Debtors intended to realize, causing a cash shortfall that became
unsustainable.
The MCA lenders have sent letters to various of the Debtors'
customers, garnished their credit card processing accounts, and
otherwise frozen cash necessary to continue operating, thereby
throttling the Debtors' ability to operate and to purchase
materials and goods needed for pending construction projects and to
fill customer retail orders, strangling the Debtors' ability to
complete projects and provide products to their customers. The
Debtors each accordingly sought protection under chapter 11 of the
Bankruptcy Code on Dec. 9, 2022 in order to reorganize their
financial affairs.
In the weeks leading up to their bankruptcy filing and as part of
their restructuring efforts, Debtor PG closed its Plano and
McKinney stores and will continue operating only its Frisco
flagship store going forward. Debtor PG will reject its store
leases in Plano and McKinney as part of its reorganization.
According to court filings, Premier Grilling LLC estimates between
$1 million to $10 million in debt owed to 100 to 199 creditors.
The petition states that funds will be available to unsecured
creditors.
About Premier Grilling
Premier Grilling LLC -- https://www.premiergrilling.com/ -- is a
one-stop shop for everything grilling! Grills, custom outdoor
kitchens/patios, classes, on-site cleaning/repair and more!
Premier Grilling LLC and Premier Grilling Outdoors LLC filed
petitions for relief under Chapter 11 of the Bankruptcy Code
(Bankr. E.D. Tex. Case No. 22-41727 and 22-41728) on Dec. 10, 2022.
In the petition filed by Brian Rush, as CEO, Premier Grilling LLC
reported assets and liabilities between $1 million and $10
million.
The Debtors are represented by:
Melissa S. Hayward, Esq.
Hayward PLLC
4775 Eldorado Pkwy, #300
Frisco, TX 75033
PRESCOTT BREWING: Gets OK to Hire New Mill Capital as Auctioneer
----------------------------------------------------------------
Prescott Brewing Company, Inc. received approval from the U.S.
Bankruptcy Court for the District of Arizona to employ New Mill
Capital Holdings, LLC as its auctioneer.
The firm will conduct an auction sale of the Debtor's assets,
including fixtures, furniture, restaurant and brewery equipment,
and remaining inventory.
The auctioneer will be compensated as follows:
(a) A 3 percent commission fee from the total sales price of
all items sold at the auction. The auctioneer's expenses will be
recouped from the 3 percent fee.
(b) A buyer's premium of 18 percent.
As disclosed in court filings, New Mill Capital is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Eric Weiler
New Mill Capital Holdings, LLC
50 Louis St NW, 6th Floor
Grand Rapids, MI 49503
Office: 888-801-6032
Fax: 818-337-7198
Email: ericw@newmillcapital.com
About Prescott Brewing Company
Prescott Brewing Company, Inc. is a company in Prescott, Ariz.,
which operates in the restaurant and bars industry.
Prescott Brewing Company filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. D. Ariz. Case No.
22-04467) on July 8, 2022, with $1,193,265 in total assets and
$274,703 in total liabilities. Christopher C. Simpson serves as
Subchapter V trustee.
Judge Madeleine C. Wanslee oversees the case.
Gallagher & Kennedy, PA and Gammage & Burnham, PLC serve as the
Debtor's bankruptcy counsel and special counsel, respectively.
PUERTO RICO: Oversight Board Files Plan for PREPA
-------------------------------------------------
The Financial Oversight and Management Board for Puerto Rico on
Dec. 16, 2022, filed its proposed Plan of Adjustment to restructure
more than $10 billion of debt and other claims against the Puerto
Rico Electric Power Authority (PREPA).
The Plan, filed with the U.S. District Court for the District of
Puerto Rico, proposes to cut PREPA's unsustainable debt by 48%, to
approximately $5.4 billion, and should provide the financial
stability necessary to invest in a modern, resilient, and reliable
energy system for Puerto Rico. "Bankruptcy held back the
transformation of Puerto Rico's energy system," said the Oversight
Board's Chairman David Skeel on Dec. 16. "The Plan we filed today
is a big step forward, but it is not the last step. We will
continue to negotiate with creditors on the path to confirmation of
the Plan by the Court."
"Every member of the Oversight Board is keenly aware that the
residents and businesses of Puerto Rico will have to shoulder the
payments of this greatly reduced debt through their electricity
bill," Skeel said. "We will continue our path to confirmation with
that in mind. However, PREPA needs to move on and Puerto Rico needs
reliable electricity. This Plan would achieve those goals."
Two classes of creditors agreed to support the Plan, which should
satisfy the legal requirement that at least one class of impaired
claims must accept the Plan to allow the Court to make the Plan
binding against all other classes of claims.
Further, the Oversight Board reached an agreement in principle with
bond insurer National Public Finance Guarantee Corp., subject to
documentation of the final terms.
There is currently no agreement with the holders and guarantors of
$7.6 billion of other PREPA bonds. The Plan allows those
bondholders to join a settlement class with a guaranteed minimum
distribution, or to join a class whose distribution will depend on
the outcome of litigation the Oversight Board resumed in September
to limit bondholders' lien on PREPA's revenue and to limit
severely their allowable claim on which they may be paid
distributions.
"Puerto Rico residents and business simply cannot pay what some
creditors demand at this point," Skeel said. “The Court has asked
us to propose a Plan that would allow PREPA to move on and today we
are fulfilling this obligation by proposing to cut PREPA's debt to
sustainable levels while leaving the door open for further
negotiations. We hope we will find a viable compromise."
The class for bondholders desiring to settle proposes a minimum 50%
recovery for those bondholders subject to additional potentially
large incremental payments if the bondholders desiring to litigate
do not prevail against PREPA. The class for bondholders desiring
to litigate will receive distributions based on the Court's
determinations of two principal issues. The Oversight Board will
continue to negotiate with creditors in the hopes of avoiding
expensive and time-consuming litigation.
The Plan also proposes to distribute to settling bondholders a
contingent value instrument (CVI). If PREPA repays its new bonds
sooner than the expected 35 years, bondholders would receive the
revenue from the connection fee and the volumetric charge through
year 35 if PREPA outperforms the projections of the certified PREPA
Fiscal Plan.
Under the Plan, for most creditors PREPA would issue new bonds with
a 6% annual interest rate (coupon), paid by a hybrid charge
consisting of a flat connection fee and a volumetric charge that
would be added to PREPA customers' electricity bills based on their
electricity usage. The Oversight Board has not finalized how the
charge will be implemented and impact individual households and
businesses, but the average charge under the filed Plan would be
roughly half of what PREPA's existing debt would cost customers for
the duration of the term of the bonds.
The Plan is consistent with the support agreement the Oversight
Board reached with Fuel Line Lenders to reduce their claim of more
than $700 million by 16% and with the support agreement with Vitol
Inc. Fuel provider Vitol would receive 50% of what general
unsecured claimholders ultimately receive. These two classes of
claims agreed in advance to the distributions proposed in the
Plan.
The estimated $800 million General Unsecured Claims will receive
distributions based on the outcome of the bondholder litigation.
Further, the Plan contemplates PREPA issuing to the Commonwealth
$400 million in bonds in exchange for cash to fund payments of
administrative expenses, some of which might be reimbursed by the
Federal Emergency Management Agency (FEMA).
The Plan proposes to treat PREPA's retirees the same as the
Commonwealth's retirees were treated under the Commonwealth’s
Title III Plan of Adjustment. Although PREPA's pension plan is
gravely underfunded, retirees will be paid in full for all benefits
earned through the effective date of the Plan. After that date, no
further benefits can be earned under the defined benefit plan by
existing or new participants. Current employees will be able to
enroll in the government's defined contribution plan.
Depending on the outcome of the bondholder litigation, the PREPA
pension system could also receive some of the funds otherwise
payable to bondholders, which would alleviate some of PREPA’s
burden to pay pension benefits.
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%.
R & E PETROLEUM: Wins Interim Cash Collateral Access
----------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Louisiana
authorized R & E Petroleum, LLC to use cash collateral on an
interim basis.
The Court said the Debtor is authorized to pay TCF National Bank,
as assignee of Patriot Capital Corporation, regular monthly
installments due pursuant to the loan documents between TCF and
Debtor in the amount of $1,612 as adequate protection for the
continued use of TCF's collateral.
The Debtor is permitted to pay the U.S. Small Business
Administration regular monthly installments due under Debtor's
COVID-19 Economic Injury Disaster Loan in the original principal
amount of $500,000 as adequate protection for continued use of the
SBA's collateral.
The Debtor is authorized to carve out $10,000 per month for the
benefit of allowed administrative expense claims.
A copy of the order is available at https://bit.ly/3PLYaBo from
PacerMonitor.com.
About R & E Petroleum, LLC
R & E Petroleum, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. La. Case No. 22-11087) on September
20, 2022. In the petition filed by Ragheb "Ray" Chaar,
member/manager, the Debtor disclosed up to $50,000 in assets and up
to $1 million in liabilities.
Judge Meredith S. Grabill oversees the case.
Leo D. Congeni, Esq., at Congeni Law Firm, LLC, is the Debtor's
counsel.
REDEEMED CHRISTIAN: Gets OK to Hire G&M Services as Broker
----------------------------------------------------------
The Redeemed Christian Church of God, River of Life received
approval from the U.S. Bankruptcy Court for the District of
Maryland to employ G&M Services Unlimited, LLC as its broker.
The Debtor requires a broker to sell its real property through a
three-party arrangement under which it will get funds for a
third-party buyer to purchase the property from Foundation Capital
Resources, Inc., a church lender that had foreclosed on the
property.
G&M will receive a commission of 2.5 percent of the sales price.
As disclosed in court filings, G&M is a "disinterested person"
within the meaning of Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Willie Baker
G&M Services Unlimited, LLC
206 New Edition Court
Cary, NC 27511
Phone: (919) 465-4300
Fax: (919) 465-9700
About Redeemed Christian Church of God
River of Life
The Redeemed Christian Church of God, River of Life is a tax-exempt
religious organization in Riverdale, Md.
Redeemed Christian Church of God filed its voluntary petition for
Chapter 11 protection (Bankr. D. Md. Case No. 21-14554) on July 9,
2021, with as much as $10 million in both assets and liabilities.
This case has been consolidated with an older Chapter 11 case
(Bankr. D. Md. Case No. 20-11902) filed by the Debtor on Feb. 13,
2020.
Judge Lori S. Simpson oversees the Debtor's bankruptcy case.
John D. Burns, Esq., at The Burns Law Firm, LLC serves as the
Debtor's legal counsel.
RENEWABLE ENERGY: Seeks to Hire Philip R. Beck & Co. as Appraiser
-----------------------------------------------------------------
Renewable Energy Holdings of Georgia, LLC seeks approval from the
U.S. Bankruptcy Court for the Northern District of Georgia to
employ Philip R. Beck & Company to conduct an appraisal of its real
properties.
The firm will receive up to $4,500 in fees for its services, which
include preparing a written appraisal report and testifying at any
court hearing or deposition.
As disclosed in court filings, Philip R. Beck & Company is a
"disinterested person" within the meaning of Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Philip R. Beck
Philip R. Beck & Company
14350 Providence Road
Milton, GA 30004
Phone: (770) 667-6318
About Renewable Energy Holdings of Georgia
Renewable Energy Holdings of Georgia, LLC specializes in hauling,
disposal and recycling of construction demolition waste with its
principal place of business located at 375 Industrial Park Road,
Cartersville, Ga., and its headquarters located at 2859 Paces Ferry
Road, Suite 1150, Atlanta, Ga.
Renewable Energy Holdings of Georgia sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No.
22-41005) on Aug. 26, 2022, with up to $50,000 in assets and up to
$10 million in liabilities. Carson Cash King, authorized
representative, signed the petition.
Judge Barbara Ellis-Monro oversees the case.
The Debtor tapped Cameron M. McCord, Esq., at Jones & Walden, LLC
as bankruptcy counsel; Lawrence M. Merlin, Esq., at Merlin &
Associates, LLC as special counsel; and Windham Brannon, LLC as
accountant.
RWDY INC: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------
Debtor: RWDY, Inc.
2640 Youree Drive, Suite 200
Shreveport, LA 71104
Business Description: The Debtor offers drilling, mud consultancy,
material coordination, and engineering
services.
Chapter 11 Petition Date: December 21, 2022
Court: United States Bankruptcy Court
Western District of Louisiana
Case No.: 22-11308
Judge: Hon. John S. Hodge
Debtor's Counsel: Robert W. Raley, Esq.
ROBERT W. RALEY, ESQ.
290 Benton Spur Road
Bossier City, LA 71111
Tel: 318-747-2230
Email: rwr@robertraleylaw.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Kenneth A. Lowery as president and sole
shareholder.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/XBIDIKY/RWDY_Inc__lawbke-22-11308__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. American Express $0
c/o Becket and Lee LP
PO Box 3001
Malvern, PA 19355
2. AXA Equitible Life Insurance $0
1290 Avenue of the Americas
14th Floor
New York, NY 10104
3. BDO $0
1100 Peachtree
Street NE
Suite 700
Atlanta, GA 30309
4. Blue Cross Blue Shield $0
PO Box 650007
Dallas, TX
75265-0007
5. Bridge Funding Cap LLC Unknown
500 W Putnam Avenue
Suite 4000
Greenwich, CT
06830-6096
6. Canon Advance LLC Unknown
500 W Putnam Avenue
Suite 400
Greenwich, CT
06830-609
7. EIN Cap, Inc. $0
160 Pearl Street
5th Floor
New York, NY 10005
8. Everest Indemnity Insurance $0
477 Martinsville Road
Liberty Corner, NJ 07938
9. Everest Premier Insurance $0
477 Martinsville Road
Liberty Corner, NJ 07938
10. Fox Capital Group, LLC $0
300 E. 56th Street
Suite 6 J
New York, NY 10021
11. GOAT Advance, LLC Unknown
77 Water Street
Suite 204
New York, NY
10005-4420
12. Internal Revenue Service $0
Centralized Insolvency Operation
PO Box 7346
Philadelphia, PA 19101
13. Jason Brazzel Settlement Unknown
1202 Big Pine Key
Benton, LA 71006
14. JP Morgan Chase Bank $0
PO Box 29550
AZI-1025
Phoenix, AZ 85038
15. Louisiana Department of Revenue $0
POB 201
Baton Rouge, LA 70821
16. Louisiana Workforce Commission $0
POB 94050
Baton Rouge, LA
70804-9050
17. Maureen Blackburn Jennings $0
Attorney at Law
4407 Blossom Street
Houston, TX 77007
18. McDermott, Will & Emery $0
PO Box 6043
Chicago, IL 60680
19. RWDY, Inc $5,565,000
Distribution Trust
c/o Lucy Sikes - Trustee
PO Box 52545
Lafayette, LA
70505-2545
20. SBA - District Counsel SBA Loan $100
U.S. Small Business Admin.
365 Canal Street
Suite 2820
New Orleans, LA 70130
SERTA SIMMONS BEDDING: Prepares Chapter 11 Bankruptcy Filing
------------------------------------------------------------
Rachel Butt of Bloomberg News reports that Serta Simmons Bedding is
preparing to seek bankruptcy protection as soon as January,
according to people with knowledge of the situation.
The closely held mattress manufacturer has been in confidential
talks with its creditors over a restructuring plan, which may
involve giving control to certain first-lien lenders, said the
people, who asked not to be identified because the matter is
private.
Talks are ongoing and plans could change, the people added. It
isn't yet clear if the company needs financing to fund its
operations through Chapter 11, they said.
A spokesperson for majority private equity owner Advent
International declined to comment.
About Serta Simmons Bedding
Headquartered in Atlanta, Georgia, Serta Simmons Bedding, LLC --
https://sertasimmons.com -- is one of the leading mattress
manufacturers in North America with its iconic Serta, Beautyrest,
Simmons and Tuft & Needle brands.
SINTX TECHNOLOGIES: All Five Proposals Passed at Annual Meeting
---------------------------------------------------------------
SINTX Technologies, Inc. held its 2022 annual meeting of
stockholders at which the stockholders:
(1) elected Eric A. Stookey and David W. Truetzel as directors
to hold office for a term expiring at the annual meeting of
stockholders to be held in 2025 or until their respective
successors are elected and qualified;
(2) ratified the Audit Committee's appointment of Tanner LLC as
the Company's independent registered public accounting firm for the
year ending Dec. 31, 2022;
(3) approved, on an advisory basis, a non-binding resolution
approving the compensation of the Company's named executive
officers;
(4) approved a proposal to grant discretionary authority to the
Company's board of directors to (i) amend the Company's certificate
of incorporation to combine outstanding shares of its common stock
into a lesser number of outstanding shares, or a "reverse stock
split," at a specific ratio within a range of 1-for-10 to a maximum
of a 1-for-100 split, with the exact ratio to be determined by the
Company's board of directors in its sole discretion; and (ii)
effect the reverse stock split, if at all, within one year of the
date the proposal is approved by stockholders; and
(5) approved adjournments of the Annual Meeting, if necessary or
appropriate, to solicit additional proxies if there are
insufficient votes at the time of the meeting to adopt one or more
of the foregoing proposals.
About SINTX Technologies
Headquartered in Salt Lake City, Utah, SINTX Technologies, Inc. --
https://ir.sintx.com -- is an OEM ceramics company that develops
and commercializes silicon nitride for medical and non-medical
applications. The core strength of SINTX Technologies is the
manufacturing, research, and development of silicon nitride
ceramics for external partners. The Company presently manufactures
advanced ceramics powders and components in its FDA registered, ISO
13485:2016 certified, and ASD9100D certified manufacturing
facility.
SINTX reported a net loss of $8.78 million for the year ended Dec.
31, 2021, a net loss of $7.03 million for the year ended Dec. 31,
2020, and a net loss of $4.79 million for the year ended Dec. 31,
2019. As of Sept. 30, 2022, the Company had $14.56 million in
total assets, $5.15 million in total liabilities, and $9.41 million
in total stockholders' equity.
SPECIAL UNIT SECURITY: Taps Markarian & Associates as Accountant
----------------------------------------------------------------
Special Unit Security, Inc. received approval from the U.S.
Bankruptcy Court for the Central District of California to hire
Markarian & Associates as its accountant.
The Debtor requires an accountant to prepare its income and expense
reports, financial statements, tax returns, monthly operating
reports and other financial reports.
The firm will charge $1,200 per month for monthly accounting and
payroll services.
As disclosed in court filings, Markarian & Associates is a
"disinterested person" within the meaning of Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Sarkis Markarian, CPA
Markarian & Associates
201 E Huntington Dr #210
Monrovia, CA 91016
Phone: +1 626-256-1381
Fax: (626) 256-1382
Email: sarkis@markariancpa.com
About Special Unit Security
Special Unit Security Inc. sought protection for relief under
Chapter 11 of the Bankruptcy Code (Bankr. C.D. Calif. Case No.
22-15668) on Oct. 18, 2022, with $100,001 to $500,000 in assets and
$500,001 to $1 million in liabilities. Judge Vincent P. Zurzolo
presides over the case.
RHM Law, LLP and Markarian & Associates serve as the Debtor's
bankruptcy counsel and accountant, respectively.
TK HOLDINGS: Montreal's Bid to Reinstate Dismissal Order Denied
---------------------------------------------------------------
In the appealed case styled In Re: TK Holdings, Inc., et al.,
Chapter 11, Debtors. Robert Montreal, Appellant, v. Eric D. Green,
in his capacity as trustee of the PSAN PI/WD Trust d/b/a/ the
Takata Airbag Tort Compensation Trust Fund, Appellee, Civil Action
No. 21-1589-RGA, (D. Del.), District Judge Richard G. Andrews for
the District of Delaware denies appellant Robert Montreal's motion
to reinstate the Court's Sept. 29, 2022 order.
On Nov. 10, 2021, the Appellant filed a document considered to be a
Notice of Appeal from an Oct. 21, 2020 Order of the bankruptcy
court, which dismissed the Appellant's claims, among others,
against the bankruptcy estate of the TK Holdings, Inc. and its
debtor-affiliates. The Appellant's Notice of Appeal was filed more
than a year after the expiry of the 14-day appeal deadline provided
pursuant to Bankruptcy Rule 8002(a), and the Appellant failed to
seek an extension from the bankruptcy court by showing excusable
neglect of the time within which to appeal. Accordingly, on Sept.
29, 2022, the Court entered the Dismissal Order, holding that that
without a timely notice of appeal, it does not have appellate
jurisdiction over the appeal.
On October 25, 2022, Robert Montreal filed the instant Motion,
asking the Court to "reinstate" his appeal. The Court notes there
is no "reinstatement" remedy provided for under Part VIII of the
Bankruptcy Rules, which govern bankruptcy appeals to the Court.
Notably, there is no "motion for reconsideration" under the
Bankruptcy Rules either. However, if construed liberally, in light
of Appellant's pro se status, the remedy Appellant seeks in the
Motion is most closely aligned with a "motion for rehearing" under
Bankruptcy Rule 8022.
The Appellant argues for reconsideration ("reinstatement") on the
basis that this Court overlooked or misapprehended the law or the
facts in this case. More specifically, the Appellant asserts that
the Court has jurisdiction to hear his appeal because the Notice of
Appeal was mistakenly "filed in another court" and was sent within
the 14-day period. The Appellant's Motion also attaches "postal
receipts" as evidence that the Notice of Appeal was sent by
certified mail on November 5, 2020 and that he had "14 days to file
plus 3 days if appeal is sent by U.S. mail."
The Dismissal Order sets forth the October 21, 2020 date of the
Bankruptcy Court order from which Appellant appealed. Accordingly,
to have been timely filed, Appellant needed his Notice of Appeal to
have been actually received by the clerk's office on or before Nov.
4, 2020. Even assuming Appellant sent his Notice of Appeal via
certified mail on Nov. 5, 2020, as he asserts, the Court finds and
concludes that the Notice of Appeal remains untimely filed. The
Court reasons that mailing the Notice of Appeal on or after such
deadline, even if by certified mail, and even if mistakenly to
another court, does not comport with the Bankruptcy Rule
8002(a)(1).
The Appellant does not assert with any particularity that the Court
misunderstood the Appellant, made a decision outside the
adversarial issues presented by the parties, made an error of
apprehension, or been presented with a significant change in law or
facts. The Appellant fails to present new facts or law that would
provide a basis to change the Court's ruling in the Dismissal
Order.
Moreover, the Court determines that the Motion itself was untimely.
The Court notes that the Dismissal Order was docketed and served on
Sept. 29, 2022, the Appellant's Motion is dated Oct. 19, 2022, and
the Motion was docketed on Oct. 25, 2022. The Appellant was
required to file his Rule 8022 Motion by Oct. 13, 2022, which he
failed to do. Accordingly, the Court concludes that the Appellant's
Motion was untimely.
A full-text copy of the Memorandum Order dated Dec. 6, 2022, is
available at https://tinyurl.com/2fkv9zpz from Leagle.com.
About TK Holdings
Japan-based Takata Corporation (TYO:7312) --
http://www.takata.com/en/-- develops, manufactures, and sells
safety products for automobiles. The Company offers seatbelts,
airbags, steering wheels, child seats, and trim parts.
Headquartered in Tokyo, Japan, Takata operates 56 plants in 20
countries with approximately 46,000 global employees worldwide. The
Company has subsidiaries located in Japan, the United States,
Brazil, Germany, Thailand, Philippines, Romania, Singapore, Korea,
China, and other countries. Takata Corp. filed for bankruptcy
protection in Tokyo and the U.S., amid recall costs and lawsuits
over its defective airbags. Takata and its Japanese subsidiaries
commenced proceedings under the Civil Rehabilitation Act in Japan
in the Tokyo District Court on June 25, 2017.
Takata's main U.S. subsidiary TK Holdings Inc. and 11 of its U.S.
and Mexican affiliates each filed voluntary petitions under Chapter
11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No.
17-11375) on June 25, 2017. Together with the bankruptcy filings,
Takata announced it has reached a deal to sell all its global
assets and operations to Key Safety Systems (KSS) for US$1.588
billion.
Nagashima Ohno & Tsunematsu is Takata's counsel in the Japanese
proceedings. Weil, Gotshal & Manges LLP and Richards, Layton &
Finger, P.A., are serving as counsel in the U.S. cases.
PricewaterhouseCoopers is serving as financial advisor, and Lazard
is serving as investment banker to Takata. Ernst & Young LLP is
tax advisor. Prime Clerk is the claims and noticing agent. The
Debtors Meunier Carlin & Curfman LLC, as special intellectual
property counsel.
Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal
counsel, KPMG is serving as financial advisor, Jefferies LLC is
acting as lead financial advisor. UBS Investment Bank also
provides financial advice to KSS.
On June 28, 2017, TK Holdings, as the foreign representative of the
Chapter 11 Debtors, obtained an order of the Ontario Superior Court
of Justice (Commercial List) granting, among other things, a stay
of proceedings against the Chapter 11 Debtors pursuant to Part IV
of the Companies' Creditors Arrangement Act. The Canadian Court
appointed FTI Consulting Canada Inc. as information officer. TK
Holdings, as the foreign representative, is represented by McCarthy
Tetrault LLP.
The U.S. Trustee has appointed an Official Committee of Unsecured
Trade Creditors and a separate Official Committee of Tort
Claimants.
The Official Committee of Unsecured Creditors has selected
Christopher M. Samis, Esq., L. Katherine Good, Esq., and Kevin F.
Shaw, Esq., at Whiteford, Taylor & Preston LLC, in Wilmington,
Delaware; Dennis F. Dunne, Esq., Abhilash M. Raval, Esq., and Tyson
Lomazow, Esq., at Milbank Tweed Hadley & McCloy LLP, in New York;
and Andrew M. Leblanc, Esq., at Milbank, Tweed, Hadley & McCloy
LLP, in Washington, D.C., as its bankruptcy counsel. The Committee
has also tapped Chuo Sogo Law Office PC as Japan counsel. The
Official Committee of Tort Claimants selected Pachulski Stang Ziehl
& Jones LLP as counsel. Gilbert LLP will evaluate the insurance
policies. Sakura Kyodo Law Offices is serving as special counsel.
Roger Frankel, the legal representative for future personal injury
claimants of TK Holdings Inc., et al., tapped Frankel Wyron LLP and
Ashby & Geddes PA to serve as co-counsel.
Takata Corporation ("TKJP") and affiliates Takata Kyushu
Corporation and Takata Services Corporation commenced Chapter 15
cases (Bankr. D. Del. Case Nos. 17-11713 to 17-11715) on Aug. 9,
2017, to seek U.S. recognition of the civil rehabilitation
proceedings in Japan. The Hon. Brendan Linehan Shannon oversees the
Chapter 15 cases. Young, Conaway, Stargatt & Taylor, LLP, serves as
Takata's counsel in the Chapter 15 cases. In February 2018, the
U.S. Bankruptcy Court confirmed the Fifth Amended Chapter 11 Plan
of Reorganization filed by TK Holdings, Inc. ("TKH"), Takata's main
U.S. subsidiary, and certain of TKH's subsidiaries and affiliates.
TSS ACQUISITION: Files Emergency Bid to Use Cash Collateral
-----------------------------------------------------------
TSS Acquisition Company asks the U.S. Bankruptcy Court for the
Southern District of Ohio, Western Division, for authority to use
cash collateral and provide adequate protection.
The Debtor requires the use of cash collateral to continue funding
its necessary business expenses and to fund the costs associated
with the administration of the Case.
The Resilience Fund IV, L.P. a Delaware limited partnership and The
Resilience Fund IV-A, L.P., a Delaware limited partnership, assert
a first priority lien on the Debtor's cash collateral.
CKC Engineering, LLC also asserts an interest in the Debtor's cash
collateral.
The Debtor owes The Resilience Fund IV and The Resilience Fund IV-A
a total of approximately $10.201 million across a series of loans.
The Funds Lenders are together the majority owners of TSS RCP
Holding Company, which is the 100% owner of the Debtor. The amounts
owed by the Debtor to the Funds Lenders is made up of approximately
$7.222 million owed on a line of credit and approximately $2.979
million owed on separate notes payable.
The line of credit indebtedness was assigned to the Funds Lenders
by Austin Financial Services, Inc. and is evidenced by the Loan and
Security Agreement dated January 30, 2019, which was assigned to
the Funds Lenders via the Assignment and Assumption of Financing
and Financing Documents dated March 5, 2020.
The Debtor also owes CKC Engineering, LLC secured debts relating to
seller financing from the purchase of assets of CKC from an Asset
Purchase Agreement dated as of December 15, 2021, which is
evidenced by a Promissory Note in the face amount of $3 million
dated December 15, 2021 and certain rights to earn out funds over a
period of time from the closing of the APA through December 31,
2024. The CKC Secured Obligations are secured by the Security
Agreement dated December 15, 2021 which provides a grant of
collateral by the Debtor to CKC. The grant of security made in the
Security Agreement was perfected by the filing of a UCC Financing
Statement with the Ohio Secretary of State on December 16, 2021 as
Financing Statement Number OH00258813073.
A copy of the motion is available at https://bit.ly/3YChftN from
PacerMonitor.com.
About TSS Acquisition Company
TSS Acquisition Company is a manufacturing company with locations
in West Chester, Ohio; and in Carlsbad and Oakland, in California.
TSS sought protection under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. S.D. Ohio Case No. 22-12154) on December 19, 2022. In the
petition signed by Sumner M. Saeks, chief restructuring officer,
the Debtor disclosed up to $10 million in assets and up to $50
million in liabilities.
Judge Beth A. Buchanan oversees the case.
Patricia J. Friesinger, Esq., at Coolidge Wall Co., L.P.A., is the
Debtor's legal counsel.
TUFF TURF: Seeks Approval to Hire W M Law as Bankruptcy Counsel
---------------------------------------------------------------
Tuff Turf, Inc. seeks approval from the U.S. Bankruptcy Court for
the District of Kansas to hire Wagoner Bankruptcy Group, P.C.,
doing business as W M Law, as its legal counsel.
The firm's services include preparing bankruptcy forms and
schedules; attending meetings and court hearings; preparing a
disclosure statement and Chapter 11 plan; filing monthly operating
reports; dealing with creditors; and resolving issues related to
confirmation of the Debtor's plan.
The hourly rates of the firm's attorneys and staff are as follows:
Attorney, Ryan A. Blay $300 per hour
Attorney, Jeffrey L. Wagoner $300 per hour
Attorney, G. Addam Fera $300 per hour
Attorney, Errin Stowell $300 per hour
Paralegal, Douglas Sisson $125 per hour
Paralegal, Ana Van Noy $125 per hour
Paralegal, Betsy Hayman $125 per hour
Law Clerk, Christy Woodbury $125 per hour
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a retainer of $8,262 and a filing fee of $1,738
from the Debtor.
Jeffrey Wagoner, Esq., president of W M Law, disclosed in a court
filing that his firm is a "disinterested person" as that term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Jeffrey L. Wagoner, Esq.
Ryan A. Blay, Esq.
Wagoner Bankruptcy Group, P.C. dba W M Law
15095 W. 116th St.
Olathe, KS 66062
Telephone: (913) 422-0909
Facsimile: (913) 428-8549
Email: bankruptcy@wagonergroup.com
blay@wagonergroup.com
About Tuff Turf Inc.
Tuff Turf, Inc. -- https://www.tuffturfkc.com/ -- provides
landscaping services. It is based in Shawnee, Kan.
Tuff Turf filed a petition for relief under Subchapter V of Chapter
11 of the Bankruptcy Code (Bankr. D. Kan. Case No. 22-21176) on
Dec. 2, 2022, with between $500,000 and $1 million in assets and
between $1 million and $10 million in liabilities. Kent L. Adams
has been appointed as Subchapter V trustee.
Judge Dale L. Somers oversees the case.
The Debtor is represented by Wagoner Bankruptcy Group, P.C., doing
business as W M Law.
VELOCIOUS DELIVERY: Wins Interim Access to Cash Collateral
----------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas,
Houston Division, entered an order authorizing Velocious Delivery
LLC to use cash collateral on an interim basis through January 5,
2023. The Court set another hearing on the matter for January 6 at
9:30 a.m.
Velocious Delivery sought permission to use $92,697 of cash
collateral. The cash collateral consists of funds coming in from
accounts receivables pledged against loans from its creditors. The
Debtor requires the use of cash collateral to meet payroll and
other expenses in the operation of its business.
The entities having an interest in the cash collateral are:
a. Corporation Service Company, as Representative
b. C T Corporation System, as Representative
c. RDM Capital Funding, LLC
The Interim Order provides that Corporation Service Company, C T
Corporation System, RDM
Capital Funding, LLC, and Corporation Service Company are granted,
effective upon the Petition Date -- and without the necessity of
further action by the Debtor or Corporation Service Company, C T
Corporation System, RDM Capital Funding, LLC and Corporation
Service Company -- continuing valid and perfected replacement
like-kind liens in all of the accounts and general intangibles
arising from the operation of the Debtor's business presently
securing the indebtedness owing to Corporation Service Company, C T
Corporation System, RDM Capital Funding, LLC and Corporation
Service Company under 11 U.S.C. Section 361(2) in the same priority
as such lien existed prepetition in the accounts and
general intangibles.
The Debtor is directed to tender $1,000 monthly to the Sub V
Trustee, Jarrod B. Martin beginning December 31, 2022, and
continuing each month thereafter on the last day of each month
until plan confirmation. On or before 5:00 p.m. on January 5, 2023,
the Debtor must file a post-petition profit and loss [income
statement] on the Court's docket.
The Debtor may not pay professionals, including its accountant
until further Court order.
A copy of the motion and the Debtor's budget is available at
https://bit.ly/3hzOAFe from PacerMonitor.com.
The Debtor projects $110,000 in gross income and $14,977 in total
expenses.
About Velocious Delivery LLC
Velocious Delivery LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 22-33690) on
December 9, 2022. In the petition signed by Brandon Toledo,
president, the Debtor disclosed up to $100,000 in assets and up to
$500,000 in liabilities.
Samuel L. Milledge, Sr. Esq., at The Milledge Law Firm, PLLC,
represents the Debtor as counsel.
VENUS CONCEPT: Gets 180-Day Extension to Regain Nasdaq Compliance
-----------------------------------------------------------------
The Nasdaq Stock Market notified Venus Concept Inc. on Dec. 13,
2022, that it is eligible for an additional 180 calendar day
period, or until June 12, 2023, to regain compliance with the Bid
Price Requirement and approved the Company's transfer from the
Nasdaq Global Market to the Nasdaq Capital Market, a continuous
trading market that operates in substantially the same manner as
the Nasdaq Global Market.
As disclosed in a Form 8-K filed with the Securities and Exchange
Commission, Nasdaq's determination was based on the Company meeting
the continued listing requirement for market value of publicly held
shares and all other applicable requirements for initial listing on
the Nasdaq Capital Market with the exception of Bid Price
Requirement, and the Company's written notice of its intention to
cure the deficiency during the second compliance period by
effecting a reverse stock split, if required. The Company's common
stock will continue to trade under the symbol "VERO."
If, at any time before the Extended Compliance Date, the bid price
for the Company's common stock closes at $1.00 or more for a
minimum of 10 consecutive business days as required under the
Compliance Period Rule, the Staff will provide written notification
to the Company that it complies with the Bid Price Requirement,
unless the Staff exercises its discretion to extend this 10 day
period pursuant to Nasdaq Listing Rule 5810(c)(3)(H).
If the Company does not regain compliance with the Bid Price
Requirement by the Extended Compliance Date, the Staff will provide
written notification to the Company that its common stock will be
delisted. At that time, the Company may appeal the Staff's
delisting determination to a Nasdaq Listing Qualifications Panel.
The Company expects that its common stock would remain listed on
the Nasdaq Capital Market pending the Panel's decision. There can
be no assurance that, if the Company does appeal a delisting
determination to the Panel, such appeal would be successful.
On June 13, 2022, Venus Concept received a deficiency letter from
Nasdaq notifying the Company that, for the 30 consecutive business
days prior to June 13, 2022, the bid price for the Company's common
stock had closed below the $1.00 per share minimum bid price
requirement for continued inclusion on the Nasdaq Global Market
pursuant to Nasdaq Listing Rule 5450(a)(1). In accordance with
Nasdaq Listing Rule 5810(c)(3)(A), the Company was provided an
initial period of 180 calendar days, or until Dec. 12, 2022, to
regain compliance with the Bid Price Requirement. The Company did
not regain compliance with the Bid Price Requirement by the Initial
Compliance Date.
About Venus Concept
Toronto, Ontario-based Venus Concept Inc. is an innovative global
medical technology company that develops, commercializes, and
delivers minimally invasive and non-invasive medical aesthetic and
hair restoration technologies and related practice enhancement
services. The Company's aesthetic systems have been designed on a
cost-effective, proprietary and flexible platform that enables the
Company to expand beyond the aesthetic industry's traditional
markets of dermatology and plastic surgery, and into
non-traditional markets, including family and general practitioners
and aesthetic medical spas.
Venus Concept reported a net loss of $22.14 million for the year
ended Dec. 31, 2021, compared to a net loss of $82.82 million for
the year ended Dec. 31, 2020. As of Sept. 30, 2022, the Company
had $120.63 million in total assets, $110.61 million in total
liabilities, and $10.01 million in total stockholders' equity.
Toronto, Canada-based MNP LLP, the Company's auditor since 2019,
issued a "going concern" qualification in its report dated March
28, 2022, citing that the Company has reported recurring net losses
and negative cash flows from operations, that raises substantial
doubt about its ability to continue as a going concern.
VICE BAR: Court OKs Cash Collateral Access Thru March 2023
----------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Georgia,
Atlanta Division, authorized Vice Bar & Bistro, LLC to use cash
collateral on an interim basis in accordance with the budget, with
a 10% variance through March 12, 20230
The Debtor requires the use of cash collateral to protect and
preserve its value.
The Debtor owns the commercial real property located at 5953 Buford
Highway, Doraville, GA 30340. The Debtor originally purchased the
Property with the intention of eventually moving its restaurant
into the Property. There is currently a tenant in the Property that
has approximately four years left on its lease. A dispute with the
mortgagee led to the acceleration of the loan and the Debtor filed
the bankruptcy case to stop the foreclosure sale of the Property
scheduled for November 1, 2022.
AG Investment Holdings, LLC and Preston & Babloo Investments, LLC
assert that they hold a security deed on the Property and an
interest in the rents paid by the tenant of the Property pursuant
to an assignment of rents and leases.
As previously reported by the Troubled Company Reporter, multiple
merchant cash advance companies assert liens on the Debtor's cash
collateral. Because the MCAs file UCC-1 financing statements
through a servicer, such as Corporation Service Company, it is
impossible at this stage to determine which MCA asserts a first
position interest in the Debtor's cash collateral. The MCAs that
may assert an interest in the Debtor's cash collateral are Alpha
Capital Source, Inc., Business Advance Team LLC, and Total Merchant
Resources, LLC.
The Debtor took out a pandemic era disaster loan with the U.S.
Small Business Association and the SBA may assert an interest in
the Debtor's cash collateral. The mortgagee on the Property, AG
Investment Holdings LLC and Preston & Babloo Investments LLC, may
assert in interest in cash collateral via an assignment of leases
and rents.
To provide adequate protection for the Debtor's use of the cash
collateral, the Lenders, to the extent they hold a valid lien,
security interest, or right of setoff as of the Petition Date under
applicable law, are granted a valid and properly perfected
replacement lien on all property acquired by the Debtor after the
Petition Date.
As partial adequate protection of their interests, the Real
Property Lenders are granted Adequate Protection Liens upon all
post-petition property of Debtor of a kind as the prepetition
property to which Lenders' liens attached as of the Petition Date.
The Adequate Protection Liens will be deemed automatically valid
and perfected upon entry of the Order without the necessity of the
execution by Debtor.
A copy of the order is available at https://bit.ly/3WeT1nD from
PacerMonitor.com.
About Vice Bar & Bistro LLC
Vice Bar & Bistro LLC operates a restaurant called Vice Bar &
Bistro located in Suwanee, Georgia.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ga. Case No. 22-58751) on October 31,
2022. In the petition filed by Olufemi Ashadele, owner, the Debtor
disclosed up to $1 million in both assets and liabilities.
Judge Sage M. Sigler oversees the case.
William Rountree, Esq., at Rountree, Leitman, Klein & Geer, LLC,
represents the Debtor as legal counsel.
AG Investment Holdings, LLC and Preston & Babloo Investments, LLC,
as Real Property Lenders, are represented by:
G. Frank Nason, IV, Esq.
Lamberth, Cifelli, Ellis and Nason, P.A.
6000 Lake Forrest Drive, NW, Suite 435
Atlanta GA 30328
Tel Nos: (404) 262-7373 (main)
(404) 495-4468 (direct)
Email: fnason@lcenlaw.com
VILLAS OF COCOA: Two New Committee Members Appointed
----------------------------------------------------
The U.S. Trustee for Region 21 appointed Chris Angel and Greg
Washburn as new members of the official committee of unsecured
creditors in the Chapter 11 case of The Villas of Cocoa Village,
LLC.
The committee is now composed of:
1. Jim Stripling
41 River Ridge Drive
Rockledge, FL 32955
Telephone: (321) 427-2825
Email: jim@stripling.org
2. Ryan & Amy Moreau
c/o Daniel A. Velasquez, Esq.
201 S. Orange Ave., Ste. 1400
Orlando, FL 32801
Telephone: (407) 481-5807
Email: dvelasquez@lathamluna.com
3. Bart Berghuis & Natalie Rymer
c/o Daniel A. Velasquez, Esq.
201 S. Orange Ave., Ste. 1400
Orlando, FL 32801
Telephone: (407) 481-5807
Email: dvelasquez@lathamluna.com
4. Nancy Elliott
c/o Aldo G. Bartolone, Jr., Esq.
13506 Summerport Village Pkwy, Suite 325
Windermere, FL 34786
Telephone: (407) 294-4440
Email: aldo@bartolonelaw.com
5. Gwendolyn & Michael Anello
c/o Daniel A. Velasquez, Esq.
201 S. Orange Ave., Ste. 1400
Orlando, FL 32801
Telephone: (407) 481-5807
Email: dvelasquez@lathamluna.com
6. Chris Angel
32 Littlejohn Lane
Rockledge, FL 32955
Telephone: (321)427-2250
Email: dwane.angel@gmail.com
7. Greg Washburn
1598 Outrigger Circle
Rockledge, FL 32955
Telephone: (443) 253-4576
Email: gswashburn@yahoo.com
About The Villas of Cocoa Village
The Villas of Cocoa Village, LLC filed a petition for relief under
Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla.
Case No. 22-03286) on Sept. 12, 2022. In the petition filed by
Robert D. Harvey, authorized member, the Debtor disclosed between
$500,000 and $1 million in assets and between $1 million and $10
million in liabilities. Robert Altman has been appointed as
Subchapter V trustee.
Judge Tiffany P. Geyer oversees the case.
Winderweedle, Haines, Ward & Woodman, PA serves as the Debtor's
counsel.
The U.S. Trustee for Region 21 appointed an official committee of
unsecured creditors in the Debtor's Chapter 11 case on Nov. 16,
2022. The committee is represented by Shutts & Bowen, LLP.
VITAL PHARMACEUTICALS: Creditors Defend Creation of Separate Panel
------------------------------------------------------------------
A group of non-trade creditors of Vital Pharmaceuticals, Inc.
defended its bid to form a separate committee for creditors holding
non-trade claims against the company.
Michael Goldberg, Esq., one of the attorneys at Akerman, LLP
representing the group, said the real issue before the court is
whether non-trade creditors are "adequately represented" by the
company's official unsecured creditors' committee.
Mr. Goldberg said the unsecured creditors' committee, as
reconstituted, "grossly disproportionately" represents trade
claims.
According to the attorney, seven trade creditors were appointed to
the unsecured creditors' committee although their claims represent
only $44 million of the more than $1 billion of general unsecured
claims scheduled. Meanwhile, only two non-trade creditors currently
serve on the committee after Warner Music Group Corp. and The
American Bottling Co., Inc., both non-trade creditors, declined
their appointment.
"While the courts may not require that representation be precisely
proportionate, adequate representation for a committee does mean
those with the most at stake require a meaningful voice not diluted
by a grossly disproportionate minority with divergent interests,"
Mr. Goldberg argued.
In response to the issue concerning the costs of an additional
committee, the attorney argued that such costs "do not outweigh the
need for adequate representation."
"Given the overwhelming amount of litigation claims compared to the
trade claims, it is the litigation claimants who will be the ones
bearing the vast majority of that expense and so are in the best
position to judge whether such expense is in their interests," Mr.
Goldberg said.
More than $799 million in litigation claims or 42% of the total
litigation claims filed in Vital Pharmaceuticals' bankruptcy case
are held by American Bottling Co. and two other non-trade
creditors, Monster Energy Company and Orange Bang, Inc.
About Vital Pharmaceuticals
Since 1993, Florida-based Vital Pharmaceuticals, Inc., doing
business as Bang Energy and as VPX Sports, has developed
performance beverages, supplements, and workout products to fuel
high-energy lifestyles. VPX Sports is the maker of Bang energy
drinks, among other consumer products.
Vital Pharmaceuticals, Inc., along with certain of its domestic
subsidiaries and affiliates, filed voluntary petitions for
protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D.
Fla. Lead Case No. 22-17842) on Oct. 10, 2022.
VPX estimated $500 million to $1 billion in assets and liabilities
as of the bankruptcy filing.
The Hon. Scott M. Grossman is the case judge.
The Debtors tapped Latham & Watkins, LLP as general bankruptcy
counsel; Berger Singerman, LLP as local counsel; Huron Consulting
Group, Inc. as CTO services provider; and Rothschild & Co US, Inc.
as investment banker. Stretto, Inc. is the notice, claims and
solicitation agent.
The U.S. Trustee for Region 21 appointed an official committee of
unsecured creditors on Nov. 1, 2022. The committee tapped
Lowenstein Sandler, LLP as general bankruptcy counsel; Sequor Law,
P.A. as local counsel; Lincoln Partners Advisors, LLC as financial
advisor; and Miller Buckfire & Co., LLC as investment banker.
WC BRAKER: Trustee Gets OK to Hire AMG II as Property Manager
-------------------------------------------------------------
Dawn Ragan, the Chapter 11 trustee for WC Braker Portfolio, LLC,
received approval from the U.S. Bankruptcy Court for the Western
District of Texas to hire AMG II, LLC as property manager.
AMG will perform day-to-day property management services for the
Debtor's business and will assist the trustee with the sale
process.
The firm will receive $30,000 per month, plus a one-time $35,000
setup fee.
As disclosed in court filings, AMG is a "disinterested person"
within the meaning of Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Gary L. Shaw, Jr.
AMG II, LLC d/b/a Colliers
P.O. Box 10
Scottsdale, AZ 85252-0110
Phone: 602 955-4700
Email: Gary.Shaw@Colliers.com
About WC Braker Portfolio
WC Braker Portfolio, LLC is primarily engaged in renting and
leasing real estate properties. The Debtor filed Chapter 11
petition (Bankr. W.D. Texas Case No. 22-10293) on May 2, 2022, with
$100 million to $500 million in assets and $50 million to $100
million in liabilities. Judge Tony M. Davis oversees the case.
Todd Headden, Esq., at Hayward PLLC serves as the Debtor's legal
counsel.
ATX Braker SR, LLC, as mortgage lender, is represented by Liz
Boydston, Esq., and Stephen P. McKitt, Esq., at Polsinelli PC; and
Mitchell A. Karlan, Esq., and Keith R. Martorana, Esq., at Gibson,
Dunn & Crutcher, LLP.
Dawn Ragan, the Chapter 11 trustee appointed in the Debtor's case,
tapped Kelly Hart & Hallman, LLP as bankruptcy counsel; Geary,
Porter & Donovan, P.C. as special counsel; and AMG II, LLC, doing
business as Colliers, as property manager.
[*] 8 Restaurant Bankruptcies in 2022
-------------------------------------
Steven John of Eat This, Not That! reports on the eight restaurant
bankruptcies in the U.S. in 2022:
(1) Bertucci's Pizza
Once considered among the best in brick oven pizza, Bertucci's has
filed for Chapter 11 bankruptcy for the second time in just four
years now. The pizzeria brand has pointed to both the pandemic and
recent inflation as the primary drivers of the bankruptcy filing.
According to this latest bankruptcy court filing, Bertucci's claims
both the pandemic and inflation have contributed to decreasing
sales and rising prices. The brick-oven pizza brand generated $97.9
million in sales last year, but still reported an operational loss
tallying $14 million.
(2) Happy Joe's Pizza
2022 was not such a happy year for Happy Joe's Pizza. The pizza
chain, a favorite among many residents of the Midwest, filed for
bankruptcy in the late summer of the year. But while a number of
Happy Joe's restaurants did shut down, it's not the end of the line
for the chain as a whole: many franchised locations remain in
operation and the company's executives seemed committed to
restructuring and returning to profitability.
(3) GameWorks
According to Restaurant Business Online, it was hardly a surprise
when GameWorks finally had to quit the restaurant business in 2022.
After all, the arcade/billiards/bowling/dining destination had
filed for bankruptcy protection twice in as many decades. But this
year, its last six locations closed down and GameWorks is done for
good this time.
(4) Ryan's
The choice to file for bankruptcy and then fold completely was
effectively out of the hands of the men and women running Ryan's.
That's because, for a number of years, the chain had been operated
by the holding company Fresh Acquisitions. And when Fresh
Acquisitions went bankrupt in the spring of 2022, that sealed the
fate of this beloved buffet chain.
(5) Hale & Hearty
Once a popular and bustling New York City fast-casual go-to, known
for its soups, salads, and sandwiches, Hale & Hearty abruptly
closed all 16 of its locations in the summer of 2022. While signs
in Hale & Hearty windows went up stating that the closures were
temporary, it soon became clear that indeed the chain was done for.
In fact, it faced multiple lawsuits for unpaid rent, unpaid
worker's compensation funds, and unpaid vendor invoices.
(6) Cosi
It has been an odd on-again, off-again bankruptcy story for Cosi,
according to Bloomberg Law. The struggling chain initially filed
for bankruptcy in February 2020, only to withdraw its filing and
instead seek pandemic aid from the government. Then, in the summer
of 2022, the chain again sought to open a Chapter 11 bankruptcy
case.
(7) Hometown Burger
Once a growing darling of the San Antonio, TX food scene, in the
late summer of 2022, Hometown Burger shuttered all eight of its
locations. Though launched just a few years back in 2016, already
Hometown Burger had become a favorite with many San Antonians who
sharply felt its sudden demise.
(8) Howard Johnson's
HoJo almost made it 100 years, but it just wasn't quite to be.
Founded in 1927 and once ubiquitous across much of North America,
in 2022 the last Howard Johnson restaurant closed down. The
orange-roofed roadside restaurant once had well over 1,000
locations, but now it is officially defunct—note that its sister
hotel/motel chain lives on, though.
[^] Recent Small-Dollar & Individual Chapter 11 Filings
-------------------------------------------------------
In re All Action Security Consulting Group, Inc.
Bankr. C.D. Cal. Case No. 22-11429
Chapter 11 Petition filed December 12, 2022
See
https://www.pacermonitor.com/view/FTUPOWA/All_Action_Security_Consulting__cacbke-22-11429__0001.0.pdf?mcid=tGE4TAMA
represented by: Matthew D. Resnik, Esq.
RHM LAW, LLP
E-mail: matt@rhmfirm.com
In re The Village Center Group, Limited Partnership
Bankr. D. Mass. Case No. 22-11798
Chapter 11 Petition filed December 12, 2022
See
https://www.pacermonitor.com/view/QBEGWUQ/The_Village_Center_Group_Limited__mabke-22-11798__0001.0.pdf?mcid=tGE4TAMA
represented by: Peter M. Daigle, Esq.
DAIGLE LAW OFFICE
E-mail: pmdaigleesq@yahoo.com
In re William Hoyman
Bankr. C.D. Cal. Case No. 22-16762
Chapter 11 Petition filed December 13, 2022
represented by: Thomas Ure, Esq.
In re Asmara MLK, LLC
Bankr. N.D. Cal. Case No. 22-41268
Chapter 11 Petition filed December 13, 2022
See
https://www.pacermonitor.com/view/4QUEVZA/Asmara_MLK_LLC__canbke-22-41268__0001.0.pdf?mcid=tGE4TAMA
represented by: E. Vincent Wood, Esq.
THE LAW OFFICES OF E. VINCENT WOOD
E-mail: vince@woodbk.com
In re Joaquin Miller Estates LLC
Bankr. N.D. Cal. Case No. 22-41269
Chapter 11 Petition filed December 13, 2022
See
https://www.pacermonitor.com/view/XYDENIY/Joaquin_Miller_Estates_LLC__canbke-22-41269__0001.0.pdf?mcid=tGE4TAMA
represented by: Darya S. Druch, Esq.
DARYA S. DRUCH
E-mail: darya@daryalaw.com
In re South Park Retail LLC
Bankr. N.D. Ill. Case No. 22-14341
Chapter 11 Petition filed December 13, 2022
See
https://www.pacermonitor.com/view/KTY557Y/South_Park_Retail_LLC__ilnbke-22-14341__0001.0.pdf?mcid=tGE4TAMA
represented by: Gregory K. Stern, Esq.
GREGORY K. STERN, P.C.
E-mail: greg@gregstern.com
In re Kevin Taing
Bankr. D. Mass. Case No. 22-40896
Chapter 11 Petition filed December 13, 2022
represented by: Kate Nicholson, Esq.
In re Ana Raquel Puccinelli
Bankr. D. Nev. Case No. 22-14386
Chapter 11 Petition filed December 13, 2022
represented by: Michael Harker, Esq.
In re Hanh Thi Nguyen
Bankr. D.N.J. Case No. 22-19829
Chapter 11 Petition filed December 13, 2022
represented by: David Stevens, Esq.
In re Kings County Foundation LLC
Bankr. E.D.N.Y. Case No. 22-43097
Chapter 11 Petition filed December 13, 2022
See
https://www.pacermonitor.com/view/IJCPZWI/Kings_County_Foundation_LLC__nyebke-22-43097__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Richard Kirschenbaum
Bankr. E.D.N.Y. Case No. 22-73541
Chapter 11 Petition filed December 13, 2022
represented by: Marc Pergament, Esq.
In re Jax Service Center, LLC
Bankr. N.D.N.Y. Case No. 22-30821
Chapter 11 Petition filed December 13, 2022
See
https://www.pacermonitor.com/view/T4RNOFQ/Jax_Service_Center_LLC__nynbke-22-30821__0001.0.pdf?mcid=tGE4TAMA
represented by: Peter A. Orville, Esq.
ORVILLE & MCDONALD LAW, P.C.
In re Wade3, Inc.
Bankr. E.D.N.C. Case No. 22-02873
Chapter 11 Petition filed December 13, 2022
See
https://www.pacermonitor.com/view/5RX6AZY/Wade3_Inc__ncebke-22-02873__0001.0.pdf?mcid=tGE4TAMA
represented by: James C. White, Esq.
J.C. WHITE LAW GROUP, PLLC
E-mail: jwhite@jcwhitelaw.com
In re Henrry Delivery Services, Inc.
Bankr. M.D. Fla. Case No. 22-04921
Chapter 11 Petition filed December 14, 2022
See
https://www.pacermonitor.com/view/SGE4X2Y/Henrry_Delivery_Services_Inc__flmbke-22-04921__0001.0.pdf?mcid=tGE4TAMA
represented by: Buddy D. Ford, Esq.
BUDDY D. FORD, P.A.
E-mail: All@tampaesq.com
In re Cesium, LLC
Bankr. N.D. Ga. Case No. 22-60181
Chapter 11 Petition filed December 14, 2022
See
https://www.pacermonitor.com/view/VSR3YJI/Cesium_LLC__ganbke-22-60181__0001.0.pdf?mcid=tGE4TAMA
represented by: Ian M. Falcone, Esq.
THE FALCONE LAW FIRM, P.C.
E-mail: attorneys@falconefirm.com
In re Kenneth D. Martin, II and Aimee L. Martin
Bankr. S.D. Ind. Case No. 22-91143
Chapter 11 Petition filed December 14, 2022
represented by: Weston Overturf, Esq.
OVERTURF LAW
Email: wes.overturf@ofattorneys.com
In re 414 Vine, LLC
Bankr. D.N.J. Case No. 22-19846
Chapter 11 Petition filed December 14, 2022
See
https://www.pacermonitor.com/view/YDXA4II/414_Vine__LLC__njbke-22-19846__0001.0.pdf?mcid=tGE4TAMA
represented by: Timothy P. Neumann, Esq.
BROEGE, NEUMANN, FISCHER & SHAVER LLP
E-mail: tneumann@bnfsbankruptcy.com
In re 310 Broad Avenue Inc.
Bankr. D.N.J. Case No. 22-19854
Chapter 11 Petition filed December 14, 2022
See
https://www.pacermonitor.com/view/LKOJ6DQ/310_Broad_Avenue_Inc__njbke-22-19854__0001.0.pdf?mcid=tGE4TAMA
represented by: Seung Han Shin, Esq.
SHIN & JUNG LLP
E-mail: shinjunglaw@gmail.com
In re Mastar Sheet Co
Bankr. E.D.N.Y. Case No. 22-43110
Chapter 11 Petition filed December 14, 2022
See
https://www.pacermonitor.com/view/INAVHUA/Mastar_Sheet_Co__nyebke-22-43110__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Maranatha Evangel Church
Bankr. E.D.N.Y. Case No. 22-43111
Chapter 11 Petition filed December 14, 2022
See
https://www.pacermonitor.com/view/IV4FX6I/Maranatha_Evangel_Church__nyebke-22-43111__0001.0.pdf?mcid=tGE4TAMA
represented by: Joseph S. Maniscalco, Esq.
LAMONICA HERBST & MANISCALCO, LLP
E-mail: jsm@lhmlawfirm.com
In re Lisa Jeanne Bach
Bankr. E.D. Tenn. Case No. 22-31907
Chapter 11 Petition filed December 14, 2022
represented by: Thomas Tarpy, Esq.
In re Behrooz Aram and Maryam Adabi
Bankr. N.D. Cal. Case No. 22-51129
Chapter 11 Petition filed December 15, 2022
represented by: Lars Fuller, Esq.
In re Daniel T. Ramsdell
Bankr. W.D. Mo. Case No. 22-60684
Chapter 11 Petition filed December 15, 2022
represented by: David Schroeder, Esq.
In re Speedyg, LLC
Bankr. D.N.J. Case No. 22-19884
Chapter 11 Petition filed December 15, 2022
See
https://www.pacermonitor.com/view/MKOREQQ/Speedyg_LLC__njbke-22-19884__0001.0.pdf?mcid=tGE4TAMA
represented by: Michael Schwartzberg, Esq.
MICHAEL SCHWARTZBERG
In re Ivy League Place Inc.
Bankr. E.D.N.Y. Case No. 22-43125
Chapter 11 Petition filed December 15, 2022
See
https://www.pacermonitor.com/view/WQ2OSMY/Ivy_League_Place_Inc__nyebke-22-43125__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Sean Valentine Cotter
Bankr. S.D.N.Y. Case No. 22-11677
Chapter 11 Petition filed December 15, 2022
represented by: Rachel Blumenfeld, Esq.
In re Central Florida Pole Barns, Inc.
Bankr. M.D. Fla. Case No. 22-04970
Chapter 11 Petition filed December 16, 2022
See
https://www.pacermonitor.com/view/BEE6UAQ/Central_Florida_Pole_Barns_Inc__flmbke-22-04970__0001.0.pdf?mcid=tGE4TAMA
represented by: Buddy D. Ford, Esq.
BUDDY D. FORD, P.A.
E-mail: All@tampaesq.com
In re MSRP Company, Inc.
Bankr. D. Mass. Case No. 22-11822
Chapter 11 Petition filed December 16, 2022
See
https://www.pacermonitor.com/view/VGEL3FY/MSRP_Company_Inc__mabke-22-11822__0001.0.pdf?mcid=tGE4TAMA
In re Thomas and Thomas Freight Logistics, Inc.
Bankr. N.D. Tex. Case No. 22-32347
Chapter 11 Petition filed December 16, 2022
See
https://www.pacermonitor.com/view/BJJSDOI/Thomas_and_Thomas_Freight_Logistics__txnbke-22-32347__0001.0.pdf?mcid=tGE4TAMA
represented by: Eric A. Liepins, Esq.
ERIC A. LIEPINS
E-mail: eric@ealpc.com
In re Florence Cattle Group
Bankr. W.D. Tex. Case No. 22-31081
Chapter 11 Petition filed December 16, 2022
See
https://www.pacermonitor.com/view/2QQPEFI/Florence_Cattle_Group__txwbke-22-31081__0002.0.pdf?mcid=tGE4TAMA
represented by: E.P. Bud Kirk, Esq.
E.P. BUD KIRK
E-mail: budkirk@aol.com
In re Mountain Moving LLC
Bankr. W.D. Va. Case No. 22-50561
Chapter 11 Petition filed December 16, 2022
See
https://www.pacermonitor.com/view/4N7TAGA/Mountain_Moving_LLC__vawbke-22-50561__0001.0.pdf?mcid=tGE4TAMA
represented by: Hannah W. Hutman, Esq.
HOOVER PENROD, PLC
E-mail: hhutman@hooverpenrod.com
In re Thomas Matthew Powell
Bankr. W.D. Va. Case No. 22-50562
Chapter 11 Petition filed December 16, 2022
In re 511 Group LLC
Bankr. S.D. Fla. Case No. 22-19644
Chapter 11 Petition filed December 19, 2022
See
https://www.pacermonitor.com/view/P2LXBRI/511_Group_LLC__flsbke-22-19644__0001.0.pdf?mcid=tGE4TAMA
represented by: Joel Aresty, Esq.
JOEL M. ARESTY PA
E-mail: aresty@icloud.com
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Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
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are not intended to reflect actual trades. Prices for actual
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On Thursdays, the TCR delivers a list of recently filed
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then-ending.
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Troubled Company Reporter is a daily newsletter co-published
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*** End of Transmission ***