/raid1/www/Hosts/bankrupt/TCR_Public/230105.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, January 5, 2023, Vol. 27, No. 4
Headlines
10975 SOUTH VERMONT: Taps Law Offices of Duane R. Folke as Counsel
1933 ASSOCIATES: Jan. 18, 2023 Plan & Disclosure Hearing Set
2123 PARTNERS: Jan. 18, 2023 Plan & Disclosure Hearing Set
21ST CENTURY VALET: Wins Cash Collateral Access
5009 MANNA PETROS: Claims Will be Paid from Property Refinance
942 PENN: Trustee Gets OK to Hire Moecker Auctions as Appraiser
A BETTER WAY: Seeks Cash Collateral Access
ACORN REAL PROPERTY: Seeks to Hire Hilco as Real Estate Broker
ADAMS 3 LLC: Court Okays Appointment of Chapter 11 Trustee
ANDOVER SENIOR: Wins Cash Collateral Access Thru March 31
BERWICK HOSPITAL: $2.2-M Insider Loan to Fund Plan
BUILT ON THE ROCK: Owner to Pay Off Plan Payments Until Operational
CAMLEM TRADE: Files Emergency Bid to Use Cash Collateral
CAVALIER PHARMACY: Case Summary & 14 Unsecured Creditors
COLORADO MUSHROOM: Seeks to Tap Shilliday Law as Bankruptcy Counsel
COMEDYMX LLC: Trustee Seeks to Hire 'Ordinary Course' Professional
CYTOSORBENTS CORP: Draws Down $5M Under Bridge Bank Loan Agreement
DCIJ BEE HIVE: Amends Plan to Include Carroll & Priority Tax Claims
DEVILLE CORP: Seeks Cash Collateral Access
EXPRESSJET AIRLINES: Court Confirms Chapter 11 Plan
FARAJI ENTERPRISE: Hearing Today on Bid to Use Cash Collateral
FLAVORWORKSTRUCK LLC: Seeks to Hire Avrum J. Rosen as Counsel
FRALEG GROUP: Seeks to Hire MYC & Associates as Real Estate Broker
FTX TRADING: Wisconsin Supports Bid to Appoint Examiner
GENAPSYS INC: Reaches Settlement with Foresite Entities
HAL LUFTIG: Seeks to Hire Ruskin Moscou Faltischek as Legal Counsel
HIGGINS AG: Voluntary Chapter 11 Case Summary
HUNYGIRLS VENTURES: Wins Cash Collateral Access Thru Jan 12
INTERNATIONAL WEALTH: Court Confirms Amended Plan
KC FXE AVIATION: Seeks to Hire Seese PA as Bankruptcy Counsel
KTS SOLUTIONS: Wins Cash Collateral Access Thru Jan 10
MADJAK LLC: Unsecureds Will Get 100% of Claims in Subchapter V Plan
MIDAS CONSTRUCTION: Unsecureds Will Get 10% of Claims in Plan
MILLION DOLLAR SMILE: Seeks Cash Collateral Access
MORAN FOODS: S&P Lowers ICR to 'SD' on Distressed Debt Exchange
MUSCLE MAKER: Unit Crosses $100M Revenue Milestone in First 45 Days
MUSCLEPHARM CORP: Has $12MM in DIP Loans from White Winston
NEWAGE INC: Unsecureds to Get 0% to 100% in Wind-Down Plan
PRECISION 1 CONTRACTING: Case Summary & 12 Unsecured Creditors
PRODUCE DEPOT: Seeks June 5, 2023 Extension for Plan Approval
QHC UPSTATE: Small Business Plan Confirmed by Judge
REVLON INC: Plan Has "Substantial Distribution" for Unsecureds
SEARS AUTHORIZED: Seeks to Hire Saul Ewing as Legal Counsel
SEARS AUTHORIZED: Seeks to Hire Stretto as Administrative Agent
SEARS AUTHORIZED: Taps Gray & Company as Financial Advisor
SHILO INN: Seeks Approval to Hire Stoel Rives as Local Counsel
SUMMER AVE: Ongoing Operations to Fund Plan Payments
TGPC PROPERTIES: Files Emergency Bid to Use Cash Collateral
TOMS KING: Seeks Cash Collateral Access Thru Feb 1
VERSACE BERTONI: Unsecureds Will Get 2.5% Dividend in 3 Years
WALL VENTURES: Continued Operations to Fund Plan Payments
WHITE RABBIT: Wins Cash Collateral Access Thru Jan 30
WILLIAM HOLDINGS: Court Okays Appointment of Chapter 11 Trustee
ZACHAIR LTD: Plan Administrator Taps Hirschler Fleischer as Counsel
[^] Recent Small-Dollar & Individual Chapter 11 Filings
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10975 SOUTH VERMONT: Taps Law Offices of Duane R. Folke as Counsel
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10975 South Vermont Ave, LLC seeks approval from the U.S.
Bankruptcy Court for the Central District of California to hire The
Law Offices of Duane R. Folke as its legal counsel.
The firm's services include:
a. preparing all necessary documents to administer the
Debtor's Chapter 11 bankruptcy;
b. assisting the Debtor in getting any and all monies
necessary to recover from the fire that happened on Oct. 31, 2022;
c. assisting the Debtor in the formulation, negotiation and
promulgation of a plan of reorganization and related documents;
and
d. other necessary legal services.
The firm will charge these hourly fees:
Attorneys $1,700 per hour
Paralegals $225 - $395 per hour
As disclosed in court filings, The Law Offices of Duane R. Folke is
a "disinterested person" within the meaning of Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Duane R Folke, Esq.
The Law Offices of Duane R. Folke
3450 Wilshire Blvd
Los Angeles, CA 90010
Phone: 213-333-0762
Email: folkeslaw@hotmail.com
About 10975 South Vermont Ave
10975 South Vermont Ave, LLC filed for Chapter 11 protection
(Bankr. C.D. Calif. Case No. 22-16223) on Nov. 14, 2022. Judge
Vincent P. Zurzolo oversees the case.
The Law Offices of Duane R. Folke is the Debtor's bankruptcy
counsel.
1933 ASSOCIATES: Jan. 18, 2023 Plan & Disclosure Hearing Set
------------------------------------------------------------
On Dec. 28, 2022, 1933 Associates LP filed with the U.S. Bankruptcy
Court for the Eastern District of New York a Second Amended
Disclosure Statement referring to Second Amended Plan.
On Dec. 29, 2022, Judge Jil Mazer-Marino conditionally approved the
Second Amended Disclosure Statement and ordered that:
* Jan. 18, 2023 at 1:00 P.M. in the United States Bankruptcy
Court, Eastern District of New York, 271-C Cadman Plaza East, Suite
1595, Courtroom 3529, Brooklyn, New York 1120 is the hearing on
final approval of the Second Amended Disclosure Statement and
confirmation of the Second Amended Plan.
* Jan. 13, 2023 is fixed as the last day for filing written
objections to final approval of the Second Amended Disclosure
Statement and confirmation of the Second Amended Plan.
* Jan. 17, 2023 is fixed as the last day for the Debtor to
reply to any objections to approval of the Second Amended
Disclosure Statement and confirmation of the Second Amended.
A copy of the Order dated Dec. 29, 2022, is available at
https://bit.ly/3ifLxSP from PacerMonitor.com at no charge.
About 1933 Associates
1933 Associates LP, a company that is primarily engaged in renting
and leasing real estate properties, filed its voluntary petition
for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y.
Case No. 21-42981) on Nov. 30, 2021, listing $3,021,000 in total
assets and $1,547,467 in total liabilities. Affiliate 2123
Partners, LP, also signed the Chapter 11 petition (Bankr. E.D.N.Y.
Case No. 21-42983).
Corey M. Berman, sole partner, signed the petitions.
Judge Jil Mazer-Marino oversees the cases.
Rosenberg, Musso & Weiner, LLP serves as the Debtors' counsel.
2123 PARTNERS: Jan. 18, 2023 Plan & Disclosure Hearing Set
----------------------------------------------------------
On Dec. 28, 2022, 2123 Partners, LP, filed with the U.S. Bankruptcy
Court for the Eastern District of New York a Second Amended
Disclosure Statement referring to a Second Amended Plan.
On Dec. 29, 2022, Judge Jil Mazer-Marino conditionally approved the
Second Amended Disclosure Statement and ordered that:
* Jan. 18, 2023, at 1:00 P.M. in the United States Bankruptcy
Court, Eastern District of New York, 271-C Cadman Plaza East, Suite
1595, Courtroom 3529, Brooklyn, New York 1120 is the hearing on
final approval of the Second Amended Disclosure Statement and
confirmation of the Second Amended Plan.
* Jan. 13, 2023, is fixed as the last day for filing written
objections to final approval of the Second Amended Disclosure
Statement and confirmation of the Second Amended Plan.
* Jan. 17, 2023, is fixed as the last day for the Debtor to
reply to any objections to approval of the Second Amended
Disclosure Statement and confirmation of the Second Amended.
A copy of the Order dated Dec. 29, 2022, is available at
https://bit.ly/3WCfxqV from PacerMonitor.com at no charge.
About 2123 Partners
2123 Partners LP, a company that is primarily engaged in renting
and leasing real estate properties, filed its voluntary petition
for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y.
Case No. 21-42983) on Nov. 30, 2021, listing $5,533,000 in total
assets and $3,046,630 in total liabilities. Corey M. Berman, sole
partner, signed the petition. Judge Nancy Hershey Lord oversees
case. Rosenberg, Musso & Weiner, LLP, serves as the Debtor's
counsel.
21ST CENTURY VALET: Wins Cash Collateral Access
-----------------------------------------------
The U.S. Bankruptcy Court for the Central District of California,
San Fernando Division, authorized 21st Century Valet Parking, LLC
to use cash collateral funds through the date of confirmation of a
chapter 11 plan or dismissal of the Debtor's case, as set forth in
a budget, with the exception of payments to alleged secured
creditor Mariam Khachatryan.
The Court said that there being no indication that the cash
collateral is declining in value, the Debtor is not authorized to
make any payments on the pre-petition alleged secured claim of
Mariam Khachatryan.
As previously reported by the Troubled Company Reporter, the cash
collateral consists of the Debtor's assets, receivables and any
other property.
There is a security interest against the Property held by
Khachatryan, by virtue of a perfected UCC statement recorded
against the Debtor's assets in the outstanding amount of $181,750.
Pursuant to the parties' agreement, the Debtor was obligated to pay
$7,270 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 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 Khachatryan.
The outstanding balance on the Note is $181,750. The Note provides
for monthly payments of $7,770 per month to the Creditor.
A copy of the order is available at https://bit.ly/3iaQBI9 from
PacerMonitor.com.
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.
Judge Victoria S. Kaufman oversees the case.
Vahe Khojayan, Esq., at YK Law, LLP, is the Debtor's counsel.
5009 MANNA PETROS: Claims Will be Paid from Property Refinance
--------------------------------------------------------------
5009 Manna Petros SPE, LLC, filed with the U.S. Bankruptcy Court
for the Northern District of Georgia a Disclosure Statement for
Plan of Reorganization dated January 1, 2023.
The Debtor is a Georgia-based company that owns a commercial rental
property located at 5009 Roswell Road, Sandy Springs, Georgia 30045
(the "Property" and the "Business").
The Property is a medical office building. 5009 Manna Petros MEZZ,
LLC (the "Sole Member") is the Sole Member and Manager of the
Debtor. 5009 Manna Petros HPE, LLC is the Manager of the Sole
Member (the "Sole Member's Manager"). Scott Honan is the Manager of
the Sole Member's Manager.
Unfortunately, the Covid-19 pandemic was particularly hard on
medical office landlords as all non-essential medical services were
halted. Further complicating matters, in 2021 Mr. Honan was
hospitalized for months with a severe case of Covid-19. Due to
these factors, the Debtor fell behind on debt service payments. The
Debtor's primary secured creditor, Ameris Bank scheduled the
Property for a September 6, 2022 foreclosure sale. In order to stop
the sale and preserve the value of the Property, which has equity,
the Debtor was forced to file for chapter 11 protection.
The Debtor has worked diligently since the Petition Date to comply
with all of the requirements of being a Debtor in Possession as
well as to satisfy the requests of its creditors that have been
involved in the case, including Ameris Bank. Over the course of
this case, the Debtor has also continued to run the Business and
has diligently pursued either a refinance or sale of the Property.
The Debtor has now secured a funding for the Property for
$18,000,000.00, which will allow the Debtor to pay its creditors in
full and emerge from bankruptcy successfully.
The plan provides for the payment in full of all secured, priority,
and general unsecured claims (except for the claims of the Honan
Entities) and retention of equity interests in the Debtor.
Ameris Bank holds a lien on virtually all of the Debtors' assets.
Ameris Bank filed proof of claim No. 2 in the amount of
$10,945,704.25. The Debtor proposes to pay the payoff, including
accrued interest and attorney's fees, as of the Effective Date to
Ameris Bank in full on the Effective Date. Debtor anticipates that
a consent order resolving a pending Motion to Dismiss and/or Motion
to Lift the Stay will be entered. Ameris Bank's claim will be
resolved in accordance with the express terms of such consent order
and the Plan expressly incorporates those terms. It is anticipated
that the Effective Date will coincide with those terms.
The Debtor estimates, based on its schedules and proofs of claims
that have been filed, that there will be approximately $195,587.45
in allowed general unsecured claims, excluding the Honan Entities.
The Debtor proposes to pay General Unsecured Claims with
post-petition interest in full on the Effective Date.
The Debtor listed unsecured debts owed to Honan Preferred Equity,
that is controlled by Mr. Honan. While the Debtor does not believe
that these entities meet the statutory definition of insiders, the
Debtor is excluding these claims from Class 3 General Unsecured
Claims and the Honan Entities are waiving any claims they have
against the Debtor.
The Reorganized Debtor shall not make any distributions or pay any
dividends related to any Equity Interests unless and until all
distributions related to all Allowed Claims in Classes 1-2 have
been made in full.
The cash distributions contemplated by the Plan shall be funded by
cash generated from the refinance of the Property.
The Debtor has secured a Term Sheet Loan Commitment letter from
Alpha Finance Corp. that will pay $9,000,000.00 cash at closing and
the closing is anticipated to occur prior to May 1, 2023. Further
the Debtor has secured a Ground Lease Commitment, in which Four
Star Capital Group Inc. will pay $9,000,000.00 cash at closing and
the closing is anticipated to occur prior to May 1, 2023.
A full-text copy of the Disclosure Statement dated January 1, 2023
is available at https://bit.ly/3vEk3t3 from PacerMonitor.com at no
charge.
Debtor's Counsel:
Shayna Steinfeld, Esq.
STEINFELD & STEINFELD, PC
11B Lenox Pointe, NE
Atlanta, G 30324
Tel: 404-636-7786
Email: shayna@steinfeldlaw.com
About 5009 Manna Petros
5009 Manna Petros SPE, LLC is primarily engaged in renting and
leasing real estate properties. The Debtor is the fee simple owner
of a real property located at 5009 Roswell Rd, Sandy Springs, GA,
30342 valued at $14.1 million. The Debtor filed Chapter 11 Petition
(Bankr. N.D. Ga. Case No. 22-57056) on September 6, 2022.
In the petition signed by Scott C. Honan, manager, the Debtor
disclosed $17,659,343 in assets and $16,400,996 in liabilities.
Hon. Paul Baisier oversees the case. Shayna Steinfeld, Esq. of
STEINFELD & STEINFELD, PC is the Debtor's Counsel.
942 PENN: Trustee Gets OK to Hire Moecker Auctions as Appraiser
---------------------------------------------------------------
Barry Mukamal, the Chapter 11 trustee for 942 Penn RR, LLC,
received approval from the U.S. Bankruptcy Court for the Southern
District of Florida to employ Fort Lauderdale-based appraisal firm,
Moecker Auctions, Inc.
The firm has agreed to conduct an appraisal of the Debtor's vehicle
and provide related services at a cost not to exceed $150 per hour,
plus travel time of $75 per hour and reimbursement of out-of-pocket
expenses.
Eric Rubin, the firm's appraiser who will be providing the
services, disclosed in a court filing that he is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
Moecker Auctions can be reached through:
Eric Rubin
Moecker Auctions, Inc.
1883 Marina Mile Blvd., Suite 106
Fort Lauderdale, FL 33315
Phone: 954-252-2887
Fax: 954-252-2791
Email: info@moeckerauctions.com
About 942 Penn RR
942 Penn RR, LLC, owns a short-term luxury apartment building
located at 942 Pennsylvania Ave., Miami Beach, Fla.
942 Penn RR filed its voluntary petition for relief under Chapter
11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 22-14038) on
May 23, 2022, with $1,617,630 in total assets and $27,179,541 in
total liabilities. Raziel Ofer, manager, signed the petition.
Judge Robert A. Mark oversees the case.
The Law Office of Mark S. Roher, PA is the Debtor's legal counsel.
On June 29, 2022, the court appointed Barry E. Mukamal as the
Debtor's Chapter 11 trustee. Bast Amron, LLP and KapilaMukamal, LLP
serve as the Debtor's legal counsel and accountant, respectively.
A BETTER WAY: Seeks Cash Collateral Access
------------------------------------------
A Better Way of Life, LLC asks the U.S. Bankruptcy Court for the
District of Columbia for authority to use cash collateral in
accordance with the budget.
The cash collateral consists of rent received for the rental of the
Debtor's property at 2349 S Street, SE, Washington, DC 2002.
EquityMax, Inc. asserts a security interest in the Property
pursuant to a recorded Deed of Trust, and has a recorded Assignment
of Rents from the Property.
On February 9, 2022, EquityMax loaned the Debtor $185,000. Both a
Deed of Trust on the Property, and an Assignment of Rents were
recorded in DC Land Records. With the exception of the District of
Columbia for property taxes, no other parties are believed to have
liens on the Property.
The Debtor seeks to pay, on a monthly basis, that portion of the
Rent to EquityMax sufficient to make the regular monthly Loan
payment pursuant to the Assignment of Rents.
The Rent will be paid to EquityMax within five days of receipt up
not less than $2,311, the amount of the regular monthly mortgage
contract interest payment pursuant to the Loan, with any remainder
being used to fund the Debtor's operating expenses for the Property
or towards administrative expenses of the case. There is no
pre-petition cash collateral. Most of the Debtor's income, and
future cash collateral, will come from Rent, and will be realized
only by the continued maintenance, repair, and upkeep of the
Property and the successful prosecution of the within case.
As adequate protection for the use of cash collateral, EquityMax
will retain its lien, receive payments from the cash collateral,
and the existing equity cushion in the Property.
A copy of the motion is available at https://bit.ly/3QezbXE from
PacerMonitor.com.
About A Better Way of Life
A Better Way of Life, LLC filed a Chapter 11 bankruptcy petition
(Bankr. D.D.C. Case No. 22-00166) on Sept. 15, 2022, with as much
as $50,000 in both assets and liabilities.
Craig A. Butler, Esq., at The Butler Law Group, PLLC is the
Debtor's legal counsel.
ACORN REAL PROPERTY: Seeks to Hire Hilco as Real Estate Broker
--------------------------------------------------------------
Acorn Real Property Acquisition, Inc. seeks approval from the U.S.
Bankruptcy Court for the Eastern District of New York to hire Hilco
Real Estate, LLC.
The Debtor requires a real estate broker to market for sale its
real property located at 3751 Martin Luther King Jr., Drive SW,
Atlanta, Ga.
Hilco will receive a commission of 5 percent of the gross sale
proceeds and reimbursement for work-related expenses.
As disclosed in court filings, Hilco is a "disinterested person"
within the meaning of Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Sarah Baker
Hilco Real Estate, LLC
5 Revere Dr Suite 206
Northbrook, IL 60062
Phone: 847-509-1100
About Acorn Real Property Acquisition
Acorn Real Property Acquisition, Inc. is a single asset real estate
(as defined in 11 U.S.C. Sec. 101(51B)).
Acorn Real Property Acquisition filed a petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No.
22-42718) on Oct. 31, 2022, with $10 million to $50 million in both
assets and liabilities. Olakunle Apampa, president of Acorn Real
Property Acquisition, signed the petition.
Judge Jil Mazer-Marino oversees the case.
Richard S. Feinsilver, Esq., is the Debtor's legal counsel.
ADAMS 3 LLC: Court Okays Appointment of Chapter 11 Trustee
----------------------------------------------------------
Judge Elizabeth Gunn of the U.S. Bankruptcy Court for the District
of Columbia approved the appointment of Bradley Jones as Chapter 11
trustee for Adams 3, LLC.
The appointment comes upon the application filed by John
Fitzgerald, III, the Acting U.S. Trustee for Region 4, to appoint a
bankruptcy trustee in Adams 3's Chapter 11 case.
Mr. Jones is an attorney and a shareholder of the law firm of Odin,
Feldman & Pittleman, P.C.
Based on Mr. Jones' verified statement filed with the court as an
exhibit to the U.S. Trustee's motion, he is a disinterested person
as defined by Section 101(14) of the Bankruptcy Code.
Mr. Jones can be reached at:
Bradley D. Jones, Esq.
Odin, Feldman & Pittleman, P.C.
1775 Wiehle Avenue, Suite 400
Reston, VA 20190
Phone: (703) 218-2176/(703) 215-2913
Fax: (703) 218-2160
Email: Brad.Jones@ofplaw.com
About Adams 3 LLC
Adams 3, LLC filed a petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. D.C. Case No. 22-00205) on Nov. 1, 2022,
with between $1 million and $10 million in both assets and
liabilities. Napoleon Ibiezugbe, as officer, signed the petition.
Judge Elizabeth L. Gunn oversees the case.
Frank Morris, II, Esq., at the Law Office of Frank Morris, II and
Comprehensive Business of Northern Virginia, LLC serve as the
Debtor's legal counsel and accountant, respectively.
ANDOVER SENIOR: Wins Cash Collateral Access Thru March 31
---------------------------------------------------------
The U.S. Bankruptcy Court for the District of Kansas extended a
prior order authorizing Andover Senior Care, LLC to continue using
cash collateral for its operating expenses on a final basis through
March 31, 2023.
On August 19, 2022, the Court entered its Final Order Authorizing
Debtor's Use of Cash Collateral through September 30, 2022.
By Order entered October 4, 2022, the Court extended the Final
Order through December 31.
A copy of the order is available at https://bit.ly/3GBTUl4 from
PacerMonitor.com.
About Andover Senior Care, LLC
Andover Senior Care, LLC owns and operates an assisted living
facility in Andover, Kansas. The Debtor sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Kan. Case No.
22-10139) on March 11, 2022. In the petition signed by Dennis L.
Bush, managing member, the Debtor disclosed up to $10 million in
assets and up to $50 million in liabilities.
Judge Mitchell H. Herren oversees the case.
Mark Lazzo, Esq., at Mark J. Lazzo, Attorney At Law is the Debtor's
counsel.
BERWICK HOSPITAL: $2.2-M Insider Loan to Fund Plan
--------------------------------------------------
Berwick Hospital Company, LLC, filed with the U.S. Bankruptcy Court
for the Eastern District of Michigan a Small Business Subchapter V
Plan of Reorganization dated December 29, 2022.
The Debtor is a Delaware limited liability company that owns and
operates a psychiatric hospital. The sole officer and sole manager
is Priyam Sharma. The Debtor is owned by Fayette Holdings, Inc.,
and Priyam Sharma is the sole owner of Fayette Holdings, Inc.
The Debtor filed its chapter 11 bankruptcy because its revenue was
not sufficient to pay its ongoing expenses including payroll. The
Debtor's expenses inherited when Priyam Sharma through Fayette
Holdings purchased the equity of Debtor in December 2020 were not
sustainable because of how professional contracts were structured.
Moreover, Debtor closed its acute care portion of the hospital and
pivoted to a psychiatric hospital, and its revenues as a
psychiatric hospital were insufficient to pay the legacy costs
outstanding when it was a full-service acute care hospital.
Furthermore, the case was filed on September 30, 2022, as opposed
to the next day, because additional obligations would have been
incurred, which would have potentially affected the hospital's
licensing. and may have affected revenues.
The Debtor anticipates that the allowed amount of priority
unsecured claims will be approximately $10,465.26. This is an
unimpaired class and will be paid in full on the Effective Date.
The funds to pay these claims shall come from Debtor's funds.
General unsecured Claims are not secured by property of the estate.
The Class GUC shall be paid pursuant to the Plan in full
satisfaction of their claims. The funds to pay these claims shall
come from Debtor's funds. The postpetition Debtor in Possession
secured loan contemplated by this Plan from Sant Partners and SBJ
Inc. may also be used to pay the class of general unsecured claims
[other than the PPP forgiven loans and the insider claims]to the
extent of no more than $200,000 if there are otherwise insufficient
funds for that purpose.
Because it is unclear as to the base amount of claims, it cannot be
determined what percentage unsecured creditors will receive. The
Debtor believes, however, that the percentage to be distributed to
general unsecured creditors other than the PPP loans and the
insider claims will be no less than 10%. In any event, general
unsecured creditors will receive a greater distribution than they
would in a chapter 7 liquidation.
Plan payments will be made by the Debtor directly, as opposed to
having the Subchapter V trustee make the payments. Debtor
anticipates that the allowed amount of general nonpriority
unsecured claims will be approximately $3,099,099.52 after the PPP
loans are forgiven and the insider claims are subordinated for
purposes of payment. Upon the Effective Date, and subject to
authorization for the DIP Loan, $100,000.00 shall be distributed
directly by the Debtor for payment of the general unsecured
creditor class, to be distributed pro rata. Debtor shall also pay
an additional $200,000 during the first two years of the plan term
to the class of general unsecured claims other than the PPP loan
and the insider claims.
Furthermore, if the Pennsylvania Department of Life Services
authorizes the increased bed facility and building on it commences
within 24 months of the Effective Date, Debtor will pay an
additional $310,000 during the Plan Term to the class of general
unsecured claims other than the PPP claims that are to be forgiven
and the insider claims which are being subordinated. If the
Pennsylvania Department of Life Services authorizes the increased
bed facility and building on it commences later than 24 months of
the Effective Date but within 30 months of the Effective Date,
Debtor will pay an additional $160,000 during the Plan Term to the
class of general unsecured claims other than the PPP claims that
are to be forgiven and the insider claims which are being
subordinated.
Debtor, the Office of the United States Trustee and the Subchapter
V Trustee shall confer and if there is a material change of more
than 10% in actual performance as compared to the projections, the
parties shall negotiate whether an increased dividend to the
General Unsecured Class is warranted and if so, the amount of an
increased dividend, however, the total dividend to General
Unsecured Creditors shall be no more than $700,000 to be
distributed pro rata other than as to the PPP claim which is
anticipated to be forgiven and the insider prepetition general
unsecured claims. In the event of an impasse, one of the parties in
interest shall file an appropriate motion before the Court to
determine if an increased dividend is warranted and the amount of
such increase, subject to the $700,000 total dividend cap.
Fayette Holdings, Inc., which is owned solely by Priyam Sharma, is
the sole equity holder of the Debtor. Fayette Holdings shall retain
its equity interest in the Debtor in the same manner, nature, and
extent as prior to the Petition Date. Upon the completion of the
Plan Payments, Fayette Holdings shall own the Debtor free and clear
of all liens, claims and encumbrances as the Plan Payments shall be
in full satisfaction of all claims and administrative expenses.
On the Effective Date, Debtor will receive a secured loan of
$2,200,000 from insiders Sant Partners and SBJ Inc., which are each
owned by Priyam Sharma's son and husband respectively, for capital
expenditures and to assist in the build out necessary to procure
licensing from the State of Pennsylvania for an additional 39
patients [from 14 to 53 patients]. The loan shall bear interest at
9.5% and be amortized over a 6-year term. The loan shall be secured
by all assets of the Debtor, whether owned nor or in the future.
The funds shall be used for the following, in addition to the
payment of the class of general unsecured claims up to the amount
of $200,000 if there are otherwise insufficient funds for that
purpose.
A full-text copy of the Plan of Reorganization dated December 29,
2022, is available at https://bit.ly/3Co7CW5 from PacerMonitor.com
at no charge.
Attorneys for Debtor:
Robert Bassel, Esq.
P.O. Box T
Clinton, MI 49236
Phone: (248) 677-1234
Email: bbassel@gmail.com
About Berwick Hospital
Berwick Hospital Company, LLC is a Bloomfield Hills, Mich.-based
company, which operates in the health care industry.
Berwick filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. E.D. Mich. Case No. 22-47699) on Sept. 30,
2022, with $100,000 to $500,000 in assets and $1 million to $10
million in liabilities. Richardo I. Kilpatrick has been appointed
as Subchapter V trustee. Judge Lisa S. Gretchko oversees the case.
Robert Bassel, Esq., serves as the Debtor's legal counsel.
Deborah Fish, Esq., at Allard & Fish, P.C., is the patient care
ombudsman appointed in the Debtor's Chapter 11 case.
BUILT ON THE ROCK: Owner to Pay Off Plan Payments Until Operational
-------------------------------------------------------------------
Built on the Rock Properties, Inc., submitted a Combined Disclosure
Statement and Chapter 11 Plan of Reorganization for a Small
Business.
The Debtor, a Florida corporation, was incorporated on January 29,
2016. On or about February 16, 2016, the Debtor purchased real
property located at 7168 NW 16th Avenue, Miami Florida, 33147 (the
"Property") for $140,000. At the time of purchase, the Property was
deemed to be a duplex. The Property is still under construction.
Accordingly, the Debtor currently has no other function other than
holding the title, and the Property generates no income at this
time. The goal is to rehab the Property into an Independent Living
Facility which will house up to 26 individuals. The facility
consists of 4 bedrooms and 2 bathrooms on one side; 3 bedrooms and2
bathrooms on the other side (one side for women, one side for men)
with a communal kitchen and living space. Each bedroom will house
between 2-4 individuals. The facility will employ 2-3 individuals
to do the preparation of food, cleaning, and shopping for housing
needs.
The Property was appraised in April 2022 at $300,000, with the
appraiser noting that the building still needed approximately
$130,000 (an average of three contractor estimates) in work to be
completed. At this time, Ms. Georges estimates that the completion
of the work will take at least another 6 months to complete since
she is waiting on permits and contractors to complete work as
agreed. She anticipates that the facility, once operational, will
generate $21,000.00 in gross revenues per month which is sufficient
to pay the two lenders who financed the purchase of the property in
2016.
The Debtor believes that it will have enough cash on hand on the
effective date of the Plan to pay all claims and expenses that are
entitled to be paid on that date. Regardless of the actual date
that the project starts producing income, Ms. Georges personally
can afford the 2 plan payments totaling $2,202.98 per month
(without legal fees). She is currently paying for the improvements
out of her income as a healthcare aid and driver for Lift and earns
approximately $1,400.00 per week from such employment. A review of
her two personal bank accounts since the filing of the bankruptcy
shows that she has deposited approximately $40,186.00 into her
personal accounts and that her combined deposit balances for her
two personal bank accounts have fluctuated between a high of
$73,000.00 in March 2022 and a current low of $28,724.009 as of
October 31, 2022. The attached spread sheet and personal MOR
history (Exhibit "B") show that she has paid out approximately
$71,754.57 between February 2022 and October 2022 toward rehabbing
the Property. Between July 1, 2022 and October 31, 2022, she
deposited $20,358 into her personal bank accounts.
Until the Debtor is operational, Ms. Georges will pay the plan
payments for the two mortgages, totaling $2,202.98 per month for
the length of the five-year plan out of her own savings and
earnings.
There are no Priority Unsecured Claims and there are no General
Unsecured Claims.
Under the Plan, Class 1 Secured Claim CFAI Special Assets, LLC,
serviced by FCI Lender Services, Inc., ("Lender") is the current
holder of the first mortgage on the Property. The first mortgage
had a balance of $228,788.33 (POC-2) as of March 24, 2022. The face
amount of the original loan was $114,000.00 and the mortgage
matured in 2017, without any payment being made since 2016. The
holder of the mortgage at that time, United Bridge Capital, LP,
instituted a foreclosure lawsuit in the Miami-Dade Circuit Court at
2017-024335-CA-01, resulting in a Final Judgment of $210,469.83,
entered on October 19, 2021 in favor of Plaintiff, CFAI Special
Assets, LLC.
On or about November 9, 2022, during the administration of the
bankruptcy, the Debtor entered into a Loan Modification Agreement
("LMA") with the Lender with the first payment being due December
1, 2022. The Loan Modification Agreement provides for the new
principal balance in the amount of $223,600.00, after a credit for
a $5,000.00 down payment made by Ms. Georges on behalf of the
Debtor, which amount will be amortized over 40 years at 5%, paid in
monthly payments of principal and interest of $1,078.19 plus
current tax escrow of $219.03 and current insurance escrow of
$283.14 for a total monthly payment of approximately $1,580.36
(escrow for taxes and insurance may change over time).
Except as modified under the Plan , and by the LMA, all the terms
and conditions of the original Note and Mortgage shall remain in
effect and unchanged during the term of the permanent modified
mortgage. The mortgage shall remain as a first lien on the Property
and the Lender shall retain its lien on the Property located 7168
NW 16th Avenue, Miami Florida, 33147 until it is paid in full.
Class 1 is impaired.
Class 2 Secured Claim Lesher Pechin Trust, Inc. is the holder of a
second mortgage on the Property in the face amount of $25,000. The
balance has increased to $51,317.51 pursuant the Trust's claim
(POC-3). The Debtor proposes that the claim be repaid at 8% (till
rate) over 10 years, with a monthly payment of $622.62. There is no
agreement with the mortgagee. Class 2 is impaired.
Upon the effective date of the Debtor's CDP, the equity interest
holder shall remain the sole equity shareholder in the newly
reorganized Debtor. The Debtor believes that it will have enough
cash on hand on the effective date of the Plan to pay all claims
and expenses that are entitled to be paid on that date. Regardless
of the actual date that the project starts producing income, Ms.
Georges personally can afford the 2 plan payments totaling
$2,202.98 per month (without legal fees). She is currently paying
for the improvements out of her income as a healthcare aid and
driver for Lift and earns approximately $1,400 per week from such
employment. A review of her two personal bank accounts since the
filing of the bankruptcy shows that she has deposited approximately
$40,186 into her personal accounts and that her combined deposit
balances for her two personal bank accounts have fluctuated between
a high of $73,000 in March 2022 and a current low of $28,724.009 as
of October 31, 2022. The attached spread sheet and personal MOR
history (Exhibit "B") show that she has paid out approximately
$71,754.57 between February 2022 and October 2022 toward rehabbing
the Property. As outlined above, until the Debtor is operational,
Ms. Georges will pay the plan payments for the two mortgages,
totaling $2,202.98 per month for the length of the five-year plan
out of her own savings and earnings.
Counsel for the Debtor:
Chad Van Horn, Esq.
VAN HORN LAW GROUP, P.A.
500 N.E. 4th Street, Suite 200
Fort Lauderdale, FL 33301
Telephone: (954) 765-3166
Facsimile: (954) 756-7103
E-mail: Chad@cvhlawgroup.com
A copy of the a Combined Disclosure Statement and Chapter 11 Plan
of Reorganization dated Dec. 23, 2022, is available at
https://bit.ly/3G1kXVw from PacerMonitor.com.
About Built on the Rock
Built on the Rock Properties, Inc. filed a petition for Chapter 11
protection (Bankr. S.D. Fla. Case No. 22-11565) on Feb. 25, 2022,
listing as much as $500,000 in both assets and liabilities. Anne
Georges, president, signed the petition.
Judge Laurel M Isicoff oversees the case.
The Debtor tapped Van Horn Law Group, P.A., as legal counsel.
CAMLEM TRADE: Files Emergency Bid to Use Cash Collateral
--------------------------------------------------------
Camlem Trade LLC asks the U.S. Bankruptcy Court for the Southern
District of Florida, Miami Division, for authority to use cash
collateral in accordance with the budget.
The Debtor requires the use of cash collateral to continue its
operations, make adequate protection payments and remain current
with its vendors and sustain its inventory levels pursuant to the
monthly Budget.
The Debtor's principal has pled guilty to one count of money
laundering, and as a result is no longer a deemed valid guarantor
of the Debtor's operating loan with United Community Bank Inc.
United Community Bank Inc. has an interest in cash collateral
pursuant to a Loan and Security Agreement, which is perfected by a
UCC Financing Statement filed September 8, 2021.
Similarly the Small Business Administration has an interest in cash
collateral pursuant to a Loan and Security Agreement, which is
perfected by a UCC Financing Statement filed on June 22, 2020 and
is subordinate to the interest of UCB.
The Debtor entered into a forbearance agreement with UCB, which
amortized the UCB Loan and Security Agreement over12 months by
requiring a payment of $800,000 a month, and which forbearance
agreement was required to be renewed as of December 31, 2022.
The Debtor was current with the payments required under the UCB
Forbearance Agreement, however, the Debtor is struggling to make
the monthly payment of $800,000 pursuant to the Forbearance
Agreement and simultaneously acquire the inventory required in
order to sustain the $800,000 monthly payment. The Debtor must
maintain a certain inventory level in order to sustain its
operation at the level needed to pay UCB, the SBA and its monthly
operating expenses. Accordingly, Debtor would ask the court to
allow the Debtor to continue to make a timely monthly payment to
UCB which that would pay UCB in full with interest in 60 monthly
payments.
UCB is secured by all the Debtor's assets; including, but not
limited to, accounts receivable, inventory, personal property and
cash. Debtor has "credit" insurance which is current and eliminates
certain risks of nonpayment by customers. The Debtor's inventory
does not depreciate and is, for the most part sold, before it
arrives from the manufacturer. The Debtor's personal property is
also insured. UCB is oversecured.
The Debtor is prepared to demonstrate that its inventory is not
depreciating, and is in high demand. The Debtor has been in
business since 2012 and has steadily grown in size. The Debtor had
not missed any monthly payment due to a creditor until UCB
accelerated its repayment terms. The Debtor has a substantial
obligation due to American Express because the account was closed
by American Express and full payment was demanded.
A copy of the motion and the Debtor's budget is available at
https://bit.ly/3jTr0Uk from PacerMonitor.com.
The Debtor projects $12.5 million in total revenue and $12.150
million in costs of goods sold for January 2023.
About Camlem Trade, LLC
Camlem Trade, LLC is a wholesale distributor of hardware and
accessories. It provides wholesale services for customers that
purchase for retail stores, corporate carrier stores, mall carts
and kiosks.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 22-19915) on December
29, 2022. In the petition signed by Marcelo Irigoin, CEO and
president, the Debtor disclosed up to $50 million in assets and up
to $10 million in liabilities.
Sue Lasky, PA, is the Debtor's legal counsel.
CAVALIER PHARMACY: Case Summary & 14 Unsecured Creditors
--------------------------------------------------------
Debtor: Cavalier Pharmacy, Inc.
301 Church Street NW
Wise VA 24293
Chapter 11 Petition Date: January 4, 2023
Court: United States Bankruptcy Court
Western District of Virginia
Case No.: 23-70004
Debtor's Counsel: Scot Farthing, Esq.
FARTHING LEGAL, PC
490 West Monroe St.
Wytheville VA 24382
Tel: 276-625-0222
Email: scotf@sfarthinglaw.com
Total Assets: $0
Total Liabilities: $1,648,472
The petition was signed by Rick Mullins as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 14 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/IN6IBYQ/Cavalier_Pharmacy_Inc__vawbke-23-70004__0001.0.pdf?mcid=tGE4TAMA
COLORADO MUSHROOM: Seeks to Tap Shilliday Law as Bankruptcy Counsel
-------------------------------------------------------------------
Colorado Mushroom Farm, LLC seeks approval from the U.S. Bankruptcy
Court for the District of Colorado to hire Shilliday Law, P.C. as
its legal counsel.
The Debtor requires the firm's legal services, which include:
a. providing the Debtor with legal advice with respect to its
powers and duties under the Bankruptcy Code;
b. assisting in the preparation of a plan of reorganization
under Chapter 11;
c. filing pleadings, reports and actions that may be required
in the continued administration of the Debtor's property under
Chapter 11;
d. taking necessary actions to enjoin and stay until a final
decree the continuation of pending proceedings, and enjoining and
staying until a final decree the commencement of lien foreclosure
proceedings and all matters provided under Section 362 of the
Bankruptcy Code; and
e. other legal services related to the Debtor's Chapter 11
case.
The firm received from the Debtor a pre-bankruptcy retainer in the
sum of $15,000.
Robert Shilliday, III, Esq., the firm's attorney who will be
providing the services, disclosed in a court filing that he is
"disinterested" as defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Robert J. Shilliday, III, Esq.
Shilliday Law, P.C.
1512 Larimer St., Suite 600
Denver, CO 80202
Phone: 720-439-2500
Email: rjs@shillidaylaw.com
About Colorado Mushroom Farm
Colorado Mushroom Farm, LLC is primarily engaged in the production
of mushrooms. The company is based in Alamosa, Colo.
Colorado Mushroom Farm filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. D. Colo. Case No.
22-14958) on Dec. 20, 2022, with $50,000 to $100,000 in assets and
$10 million to $50 million in liabilities. Baljit Nanda, manager
of Colorado Mushroom Farm, signed the petition.
Judge Michael E. Romero presides over the case.
Robert J. Shilliday III, Esq., at Shilliday Law, P.C. represents
the Debtor as counsel.
COMEDYMX LLC: Trustee Seeks to Hire 'Ordinary Course' Professional
------------------------------------------------------------------
William Homony, the trustee appointed in the Chapter 11 cases of
ComedyMX, LLC and ComedyMX, Inc., seeks approval from the U.S.
Bankruptcy Court for the District of Delaware to employ Randall
Newman, Esq., an attorney practicing in New York, as an "ordinary
course" professional.
Mr. Newman will handle the Debtors' copyright and other
intellectual property issues. Among other things, he will address
certain copyright complaints submitted to the Debtors' streaming
services, in particular YouTube.
Mr. Newman will be compensated 100 percent of his fees and
expenses, provided that the fees, excluding costs and
disbursements, do not exceed $15,000 in a given month.
The attorney can be reached at:
Randall S. Newman, Esq.
270 Madison Avenue
New York, NY 10016
Telephone: (212) 545-4600
About ComedyMX
ComedyMX, LLC operates the business of making classic cartoons
available to the public on various platforms such as YouTube, under
the name Cartoon Classics.
ComedyMX, LLC and its affiliate, ComedyMX Inc., sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead
Case No. 22-11181) on Nov. 14, 2022. In the petition signed by
Edward Heldman, president and chief executive officer, ComedyMX,
LLC disclosed up to $500,000 in assets and up to $1 million in
liabilities while ComedyMX Inc. disclosed up to $100,000 in assets
and up to $500,000 in liabilities.
Judge Craig T. Goldblatt oversees the cases.
Leech Tishman Fuscaldo & Lampl is the Debtors' legal counsel.
CYTOSORBENTS CORP: Draws Down $5M Under Bridge Bank Loan Agreement
------------------------------------------------------------------
CytoSorbents Corporation said it has received $5 million in
non-dilutive debt financing under the terms of the Fourth Amendment
to its Amended and Restated Loan and Security Agreement with Bridge
Bank, which provided for a term loan commitment of up to $15
million in aggregate, available for drawdown in tranches of $5
million each at the discretion of CytoSorbents and subject to
certain financial requirements. Separately, on Dec. 29, 2022, the
two parties entered into the Fifth Amendment to the Amended and
Restated Loan and Security Agreement, extending the drawdown period
on the remaining $10 million loan commitment from Dec. 31, 2022 to
March 1, 2023, subject to certain requirements.
The initial $5 million tranche of the term loan has no associated
financial or other covenants and bears interest at the Index Rate
(defined in the Loan Agreement as the greater of 3.25% or the Prime
Rate as published by the Wall Street Journal on the last business
date of the month immediately preceding the month in which the
interest will accrue) plus 1.25%, subject to an interest rate cap
of 8.00%. Subject to certain financial requirements, interest-only
payments are due until January 1, 2024, followed by equal monthly
payments of principal and interest until the maturity of the loan
on Dec. 1, 2025.
Kathleen P. Bloch, CPA, MBA, chief financial officer of
CytoSorbents, stated, "We believe that debt capital represents an
attractive alternative to equity at the current time and that this
non-dilutive financing strengthens our balance sheet at favorable
terms, providing us with additional capital that we anticipate
using for three of our major goals as we enter 2023. The first is
to successfully complete our U.S. STAR-T pivotal trial and to file
for potential U.S. FDA marketing approval for DrugSorb-ATR in the
second half of 2023. The second is to support a number of
important commercial initiatives and to steer our Company back to
product sales growth. The third goal is to ensure tight control of
expenses designed to make our cash go farther. Bridge Bank has
been an excellent partner for more than six years and we greatly
appreciate their continuing confidence and support of our
business."
Bill Wickline, Head of Life Sciences at Bridge Bank, stated, "Over
the years of working with CytoSorbents, we have witnessed the
significant revenue growth of the Company and the validation of its
scalable, high margin business model. We are pleased to contribute
to the capital needs of CytoSorbents at this next stage of their
evolution and to support their important mission of working to save
lives worldwide."
About CytoSorbents
Based in Monmouth Junction, N.J., CytoSorbents Corporation is
engaged in critical care immunotherapy, specializing in blood
purification. Its flagship product, CytoSorb, is approved in the
European Union with distribution in more than 75 countries around
the world as an extracorporeal cytokine adsorber designed to reduce
the "cytokine storm" or "cytokine release syndrome" seen in common
critical illnesses that may result in massive inflammation, organ
failure and patient death.
CytoSorbents reported a net loss of $24.56 million for the year
ended Dec. 31, 2021, a net loss of $7.84 million for the year ended
ec. 31, 2020, a net loss of $19.26 million for the year ended Dec.
31, 2019, and a net loss of $17.21 million for the year ended Dec.
31, 2018. As of Sept. 30, 2022, the Company had $62.27 million in
total assets, $23.13 million in total liabilities, and $39.14
million in total stockholders' equity.
DCIJ BEE HIVE: Amends Plan to Include Carroll & Priority Tax Claims
-------------------------------------------------------------------
DCIJ Bee Hive, LLC, submitted a Second Amended Subchapter V Plan of
Reorganization dated December 29, 2022.
The Debtor's receivables/expenditures occur on a monthly basis.
After accounting for expenditures that are necessary for the
continued operation of the Debtor's business, the projected monthly
disposable income totals $44,336.
The length of the Plan is 3 years from the effective date of the
plan. Payments to allowed secured claims shall continue beyond the
3-year plan length.
Attorney fees and costs of the Debtor's counsel total approximately
$40,000.00. It is estimated that additional expenses related to
Plan drafting through the confirmation hearing may total $5,000.00
in fees and costs. Except to the extent that a holder of an
Administrative Claim pursuant to this subsection agrees to a
different treatment, the Debtor shall pay said claim in full upon
the Effective Date, or (b) at the approximate rate of $1,250.00 per
month for 36 months.
The Debtor estimates that the amount owing to the Subchapter V
Trustee will total $10,500, including fees and costs through the
final hearing on confirmation, which shall be paid in full on the
(a) Effective Date, or (b) at the approximate rate of $291.67 per
month for 36 months.
Priority Tax Claim(s). These are claims of a governmental entity
for taxes:
* The Internal Revenue Service ("IRS") filed a proof of claim
(Proof of Claim No. 3-2) for a total claim amount of $1,826.37. Of
that total amount, $801.00 has been designated as a priority claim.
Said clam shall be paid in full on the Effective Date of the Plan.
Any remaining balance of the IRS's claim, as asserted in its proof
of claim, shall be treated as an unsecured claim for purposes of
this Plan in accordance with the terms of Class 3 claims.
* The Wisconsin Department of Revenue ("WDOR") filed a proof
of claim (Proof of Claim No. 7-1) for a total amount of $1,929.55.
Of that total amount, $988.08 has been designated a priority claim.
Said priority claim shall be paid in full on the Effective Date of
the Plan. Any remaining balance of WDOR's claim, as asserted in its
proof of claim, shall be treated as an unsecured claim for purposes
of this Plan in accordance with the terms of Class 3 claims.
Rebecca Carroll filed a proof of claim (Proof of Claim No. 5-1) for
a total amount of $67,500.00. The Carroll claim arises out of a
Wisconsin Equal Rights Division Case filed as Case No. CR202102462
alleging violations of State and Federal Law. At the time of the
alleged violations, the Debtor had in place an Employment Practices
Liability Insurance Policy, Policy No. A37961 03 with West Bend
Specialty Insurance Company ("West Bend") as the carrier. The
parties collectively have agreed to settle the Carroll claim as
follows:
* The funds for the settlement will be wholly contributed by
West Bend. All settlement checks issued by West Bend to the Debtor
are to be provided to the Debtor pursuant to the insurance policy
terms and labeled as "pass through payments."
* One check made payable, upon payment from West Bend to
Debtor, in the gross amount of $45,000.00, without deduction, which
shall be attributable to the portion of Carroll's claim(s) for
compensatory and liquidated damages and shall be reported to both
the law firm representing Carroll and Carroll on IRS 1099 MISC
forms; and
* Once check made payable to the law firm representing
Carroll, Cross Law Firm, S.C. in the amount of $22,500.00 which sum
shall be attributable to Carroll's attorneys' fees and shall be
reported to both Cross Law Firm and Carroll on IRS 1099-MISC
forms.
Like in the prior iteration of the Plan, all non-priority unsecured
claims will be paid pro rata from remaining net disposable income,
if any, after disbursements made to secured and priority claims
have been paid. Distributions will be made on a pro rata basis.
The funds necessary for the payment of creditor's claims will be
derived from the Debtor's future gross income less ordinary and
necessary operational expenses.
A full-text copy of the Second Amended Plan dated December 29,
2022, is available at https://bit.ly/3iiBCf7 from PacerMonitor.com
at no charge.
Attorney for Debtor:
Evan M. Swenson, Esq.
Swenson Law Group, LLC
118 E. Grand Avenue
Eau Claire, WI 54701
Telephone: (715) 835-7779
Facsimile: (715) 835-2573
Email: evan@swensonlawgroup.com
About DCIJ Bee Hive
DCIJ Bee Hive, LLC, is a limited liability company that was
organized on September 6, 2016. DCIJ has operated as an assisted
living service provider in Eau Claire, Wisconsin since its
inception. Daniel Pekol is the sole owner/managing member of
DCIJ.
DCIJ Bee Hive sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Wis. Case No. 22-10427) on March 25,
2022. In the petition signed by Daniel Peko, managing member, the
Debtor disclosed up to $50,000 in assets and up to $10 million in
liabilities.
Judge Catherine J. Furay oversees the case.
Evan M. Swenson, Esq., at Swenson Law Group, LLC, is the Debtor's
counsel.
DEVILLE CORP: Seeks Cash Collateral Access
------------------------------------------
Deville Corp. asks the U.S. Bankruptcy Court for the Middle
District of Florida, Tampa Division, for authority to use cash
collateral.
The Debtor requires the use of cash collateral to fund its
operating expenses and the costs of administering the Chapter 11
case in accordance with the proposed budget.
By separate motion, the Debtor has sought approval to sell its
property in Nashville, Tennessee, to Kelly Investment Group, LLC,
subject to the terms and conditions of the parties' Purchase
Agreement and free and clear of any and all liens, claims,
interests, or encumbrances other than the Permitted Encumbrances
(as defined in the Purchase Agreement), pursuant to 11 U.S.C.
section 363.
The Debtor anticipates that creditors will assert the Debtor owes
approximately $2.85 million in various claims and obligations. That
amount includes a $900,000 mortgage to FLA-Nash, LLC that matures
in March 2023 and an additional obligation of $250,000 to FLA Nash.
The amount includes obligations for ad valorem real property taxes
of approximately $184,000 owed to the Davidson County Metropolitan
Trustee. The amount includes an approximately $1.2 million note to
Savannah Capital, LLC, a Georgia limited liability company and a
debtor in a chapter 11 case pending before the Court at In re
Savannah Capital, LLC, Case No.: 8:22-bk-0143 1-CPM, as well as one
of two 50% shareholders of the Debtor. The Savannah Capital Note
may have been transferred to a third party.
Specifically, the Debtor intends to use cash collateral for:
a. Payment of the regular mortgage payment to FLA Nash;
b. Insurance;
c. Purchase of necessary materials, maintenance, and
supplies;
d. Payment of utilities;
e. Management fees and accounting fees;
f. Other payments necessary to sustain continued business
operations;
g. Care, maintenance, and preservation of the Debtor's assets;
and
h. Costs of administration in these Chapter 11 cases.
In exchange for the Debtor's ability to use cash collateral in the
operation of the business, the Debtor proposes to grant to the
Secured Creditors, as adequate protection, replacement liens to the
same extent, validity, and priority as existed on the Petition
Date.
The Debtor also requests the Court to schedule a preliminary
hearing on the matter on January 12, 2023.
A copy of the motion and the Debtor's budget is available at
https://bit.ly/3Za8VSf from PacerMonitor.com.
The Debtor projects total operating expenses, on a monthly basis,
as follows:
$4,082 for January 2022;
$3,049 for February 2022; and
$2,940 for March 2022.
About Deville Corp.
Deville Corp. is a Single Asset Real Estate (as defined in 11
U.S.C. Sec. 101(51B)).
Deville Corp. filed a petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. M.D. Fla. Case No. 22-04930) on Dec. 14,
2022. In the petition filed by Edgar L.T. Gay, as president and
director, the Debtor reported assets between $10 million and $50
million and liabilities between $1 million and $10 million.
The Debtor is represented by Daniel R Fogarty, Esq. at Stichter,
Riedel, Blain & Postler, P.A.
EXPRESSJET AIRLINES: Court Confirms Chapter 11 Plan
---------------------------------------------------
Judge Mary F. Walrath has entered an order approving and confirming
the First Amended Combined Disclosure Statement and Plan of
Expressjet Airlines LLC.
The appointment of Christopher Tierney as the Liquidating Trustee
and the terms of his proposed compensation are approved. Among
other powers enumerated in Article VI of the Liquidating Trust
Agreement, and subject in all respects to the terms of the Plan and
Liquidating Trust Agreement, the Liquidating Trustee is authorized
to wind down the Debtor's Estate and make distributions from the
Liquidating Trust Assets after the Effective Date.
The Debtor will transfer the unexpired lease for the warehouse
facility located at 4741 World Houston Parkway, Suite 150, Houston,
Texas 77032 (the "Warehouse Lease") with EastGroup Properties, L.P.
(the "Landlord") to the Liquidating Trust with the Landlord's
consent, provided that the obligations under the Warehouse Lease,
including the payment of monthly amounts due under the Warehouse
Lease to the Landlord, are being met, and such transfer shall not
constitute an assumption, assignment, rejection, novation or
amendment of the Warehouse Lease.
The Debtor has agreed with the United States that neither the
Debtor nor the Liquidating Trustee shall make Distributions to
Holders of Class 4 Claims prior to the Government Bar Date, without
first consulting with counsel to the United States.
On the Effective Date, all Existing Equity Interests shall be
transferred from ManaAir LLC to the Plan Sponsor.
Classes 3 and 4 have voted to accept the Plan. Classes 1 and 2 are
not impaired under the Plan and are, therefore, deemed to have
accepted the Plan under Section 1126(f) of the Bankruptcy Code.
The remaining classes of Claims and Interests are impaired by the
Plan and are not entitled to receive or retain any property under
the Plan and, therefore, are deemed to have rejected the Plan
pursuant to Section 1126(g) of the Bankruptcy Code.
About Expressjet Airlines
ExpressJet Airlines, LLC -- https://expressjet.com/ -- is a
regional U.S. airline headquartered in College Park, Ga.
ExpressJet Airlines sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 22-10787) on Aug. 23,
2022, with between $10 million and $50 million in both assets and
liabilities. John Greenlee, president of ExpressJet Airlines,
signed the petition.
Morris, Nichols, Arsht & Tunnell, LLC and Eversheds Sutherland
(US), LLP serve as the Debtor's bankruptcy counsel and special
counsel, respectively. Epiq Corporate Restructuring, LLC is the
claims and noticing agent and administrative advisor.
FARAJI ENTERPRISE: Hearing Today on Bid to Use Cash Collateral
--------------------------------------------------------------
Faraji Enterprise, LLC asks the U.S. Bankruptcy Court for the
Northern District of Illinois, Eastern Division, for authority to
use the cash collateral of Central Savings F.S.B.
The Debtor, through its beneficial interest in the Hirsch God Trust
Agreement dated January 24, 2017, and known as Trust No. 469, has
an exclusive ownership interest in the property located at Hirsch
Avenue, Calumet City, Illinois. Pursuant to a Mortgage with Central
Savings, F.S.B. dated January 24, 2017, and an Assignment of Rents
both of which are held by Central Savings FSB. The mortgage amount
is currently $370,975.
The most recent appraisal of the property dated December 2016 lists
the fair market value of the property at $525,000 resulting in an
equity cushion in excess of $100,000.
The Debtor through its beneficial interest it the Trust Agreement
also has an exclusive possessory and ownership interest in the
Hirsch Property.
On June 21, 2022, Central Savings filed a commercial foreclosure
against the Debtor in the Circuit Court of Cook County, Chancery
Division, captioned Central Savings v. Faraji Enterprise, LLC et
al, Case No. 2022-CH-05931.
Sometime in 2022, the Debtor began to experience financial
difficulties due to extended vacancies and delinquent rental
payments. The failure of the tenants to pay rent coupled with the
vacancies resulted in the Debtor's inability to make timely
mortgage payments.
The Debtor is collecting rents generated by the Hirsch property.
Pursuant to 11 U.S.C. section 363 (a), the rents and other income
generated by the Hirsch property is cash collateral in which
Central Savings has an interest.
To provide Central Savings adequate protection pursuant to 11
U.S.C. section 361, the Debtor has agreed to:
a. grant FSB replacement liens on the Property and the
proceeds of the Property and the proceeds of the Property to the
same extent and with the same priority as its prepetition liens on
the Property and the proceeds of the Property;
b. limit its expenditures to the disbursements listed on the
budget.
c. enter into the Interim Order Authorizing the Debtor to Use
Cash Collateral which will be substantially in the form of the
Order.
A hearing on the matter is set for January 5, 2023 at 9:30 a.m.
A copy of the motion is available at https://bit.ly/3X2mf9p from
PacerMonitor.com.
A copy of the budget is available at https://bit.ly/3Z8g3i4 from
PacerMonitor.com.
The Debtor projects $11,083 in monthly expenses and $13,313 in
gross monthly receipts.
About Faraji Enterprise, LLC
Faraji Enterprise, LLC is engaged in the business of owning and
managing a 15 Unit building located at 469-473 Hirsch Avenue,
Calumet City, Illinois, 60419.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ill. Case No. 22-14998) on December
30, 2022. In the petition signed by Edmund Gaines, member/trustee,
the Debtor disclosed up to $1 million in assets and up to $500,000
in liabilities.
William E. Jamison, Jr., Esq., at William E. Jamison and
Associates, represents the Debtor as legal counsel.
FLAVORWORKSTRUCK LLC: Seeks to Hire Avrum J. Rosen as Counsel
-------------------------------------------------------------
Flavorworkstruck, LLC seeks approval from the U.S. Bankruptcy Court
for the Eastern 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 per 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 Flavorworkstruck LLC
Flavorworkstruck, LLC sought protection for relief under Chapter 11
of the Bankruptcy Code (Bankr. E.D.N.Y. Case No. 22-42150) on Sept.
9, 2022, with $500,001 to $1 million in both assets and
liabilities. Judge Jil Mazer-Marino presides over the case.
The Law Offices of Avrum J. Rosen, PLLC represents the Debtor as
counsel.
FRALEG GROUP: Seeks to Hire MYC & Associates as Real Estate Broker
------------------------------------------------------------------
Fraleg Group, Inc. seeks approval from the U.S. Bankruptcy Court
for the Eastern District of New York to hire MYC & Associates, Inc.
as its real estate broker.
The Debtor requires the assistance of MYC to market the property
located at 112 North Walnut St., East Orange, N.J., in order to
sell it pursuant to its Chapter 11 reorganization plan.
MYC will be entitled to seek its customary fees for the time spent
in connection with the marketing of the property.
As disclosed in court filings, MYC is a "disinterested person"
within the meaning of Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Marc P. Yaverbaum
MYC & Associates, Inc.
1110 South Ave.
Staten Island, NY 10314
Office: 347-273-1258
Mobile: 917-648-8059
Fax: 347-273-1358
Email: my@myccorp.com
About Fraleg Group
Fraleg Group, Inc. is a single asset real estate debtor (as defined
in 11 U.S.C. Section 101(51B)). It is the fee simple owner of two
properties in East Orange, N.J., having a total current value of $4
million.
Fraleg Group sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 22-41410) on June 17,
2022, with as much as $10 million in both assets and liabilities.
Judge Jil Mazer-Marino oversees the case.
The Debtor's counsel is Avrum J. Rosen, Esq., at the Law Offices of
Avrum J. Rosen, PLLC.
FTX TRADING: Wisconsin Supports Bid to Appoint Examiner
-------------------------------------------------------
The attorney general of Wisconsin has expressed support for the
appointment of an examiner in the Chapter 11 cases of FTX Trading
Ltd. and its affiliates.
Joshua Kaul, Wisconsin attorney general, asked the U.S. Bankruptcy
Court for the District of Delaware to grant the motion filed by the
U.S. Trustee for Regions 3 and 9 to direct the appointment of an
examiner, saying government regulators would benefit from an
independent investigation into allegations of fraud, dishonesty or
criminal conduct in the management of the companies by their
officers, including former chief executive officer, Samuel
Bankman-Fried.
"As part of the broader societal interest, state and federal
government regulators would benefit from a neutral fact-finder's
investigation, which would enable them to learn from a
disinterested source what happened and how it happened under the
current regulatory framework," Mr. Kaul said in court papers.
"These answers are necessary so that government regulators can put
into place an effective regulatory framework to ensure that
something like this, a colossal fraud costing billions of dollars
in economic waste, never happens again," the attorney general
said.
The State of Wisconsin is currently investigating the companies for
potential state securities violations in connection with their
transacting of business with Wisconsin account holders.
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.
The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel;
Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal
North America, LLC as 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.
GENAPSYS INC: Reaches Settlement with Foresite Entities
-------------------------------------------------------
Redwood Liquidating Co. f/k/a GenapSys, Inc., submitted a Revised
Combined Disclosure Statement and Plan dated January 3, 2023.
The Combined Disclosure Statement and Plan constitutes a
liquidating chapter 11 plan for the Debtor.
Following the Petition Date, the Debtor and Lazard's continued
negotiations with Farallon resulted in the Debtor receiving a
Stalking Horse Bid for substantially all of the Debtor's assets
from the Stalking Horse Bidder, Sequencing Health, a purchaser
entity affiliated with entities, funds and/or accounts managed or
advised, directly or indirectly, by, or under common control with,
two investors holding Series D Preferred Equity Interests in the
Debtor: Farallon and Soleus Private Equity Fund II, LP.
Pursuant to the Stalking Horse Bid, the Stalking Horse Bidder
proposed to purchase the Purchased Assets for the aggregate
purchase price of up to $10,000,000 in cash consideration and the
assumption of certain prepetition indebtedness to Oxford. The
aggregate Purchase Price, based on the Cash Purchase Price and the
Assumed Oxford Indebtedness, was approximately $42 million.
On September 8, 2022, the Bankruptcy Court held the Sale Hearing to
consider approval of the Sale to Sequencing Health, as Stalking
Horse Bidder, pursuant to the Asset Purchase Agreement. On
September 14, 2022, the Sale closed. In connection with the Sale,
the Debtor and Sequencing Health entered into that certain
Transitions Services Agreement, dated September 14, 2022 (the
"TSA"), whereby the Debtor agreed to provide certain Services (as
defined in the TSA), in exchange for the fees, costs and expenses.
Foresite Settlement
On December 15, 2022, the Debtor filed the Motion of the Debtor for
Entry of an Order (I) Authorizing and Approving the Stipulation By
and Between Debtor and Foresite Entities Resolving Claims and
Related Issues and (II) Granting Related Relief (the "Foresite 9019
Motion"), seeking approval of, among other things, the settlement
between the Debtor and Foresite (the "Foresite Settlement")
regarding the Disputes (as defined in the Foresite Settlement),
including, but not limited to, the Potentially Relevant Records,
the California Action, and certain mutual releases. For the
avoidance of doubt, nothing contained in this Combined Disclosure
Statement and Plan shall modify any terms of the Foresite
Settlement.
Like in the prior iteration of the Plan, each Holder of an Allowed
Class 3 General Unsecured Claims shall be paid its Pro Rata share
of the Net Distributable Assets, in full and final satisfaction,
settlement, discharge, and release of, and in exchange for, its
Allowed General Unsecured Claims. This Class is impaired. The
allowed unsecured claims total $6,333,208. This Class will receive
a distribution of 17% of their allowed claims.
On the Effective Date, all Executory Contracts (including any
unexpired leases) that are (i) not assumed before the Effective
Date or (ii) not subject to a pending motion to assume or reject as
of the Effective Date will be deemed rejected; provided, however,
that, for the avoidance of doubt, to the extent the Debtor entered
into any ordinary course extensions of any executory contracts
concerning payroll services, such agreement, as extended, shall
vest in the Post-Effective Date Debtor. The Confirmation Order
shall constitute an order approving such rejection as of the
Effective Date.
Nothing in the Combined Disclosure Statement and Plan alters the
rights and obligations of the Debtor (and its Estate) and the
Debtor's Insurers (and third-party claims administrators) under the
Insurance Policies or modifies the coverage or benefits provided
thereunder or the terms or conditions thereof or diminishes or
impairs the enforceability of the Insurance Policies, and the
rights and obligations of the Debtor (and its Estate) existing
under the Insurance Policies as of the Effective Date shall vest in
the Post-Effective Date Debtor.
Allowed Claims, Allowed Equity Interests, and any amounts necessary
to wind down the Debtor's Estate shall be paid from the Net
Distributable Assets.
Counsel to the Debtor:
Daniel J. DeFranceschi, Esq.
Michael J. Merchant, Esq.
David T. Queroli, Esq.
J. Zachary Noble, Esq.
Richards, Layton & Finger, PA
One Rodney Square
920 North King Street
Wilmington, DE 19801
Telephone: (302) 651-7700
Facsimile: (302) 651-7701
Email: defranceschi@rlf.com
merchant@rlf.com
queroli@rlf.com
noble@rlf.com
About GenapSys Inc.
GenapSys Inc. -- https://genapsys.com/ -- is a biotechnology
company that transforms the human condition by building a scalable,
affordable genomic sequencing ecosystem that will support research
and diagnostics. It is based in Redwood City, Calif.
GenapSys sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Del. Case No. 22-10621) on July 11, 2022. In the
petition filed by Britton Russell, chief financial officer and
treasurer, the Debtor listed assets between $10 million and $50
million and liabilities between $50 million and $100 million.
Judge Brendan Linehan Shannon oversees the case.
The Debtor tapped Richards, Layton & Finger, PA as bankruptcy
counsel; Willkie Farr & Gallagher LLP as special litigation and
corporate counsel; and Lazard Freres & Co. LLC as investment
banker. Kroll Restructuring Administration LLC is the Debtor's
claims and noticing agent and administrative advisor.
HAL LUFTIG: Seeks to Hire Ruskin Moscou Faltischek as Legal Counsel
-------------------------------------------------------------------
Hal Luftig Company, Inc. seeks approval from the U.S. Bankruptcy
Court for the Southern District of New York to hire Ruskin Moscou
Faltischek, P.C. as its legal counsel.
The firm's services include:
a. providing the Debtor with legal advice with respect to its
powers and duties in the continued operation of its business and
management of its property;
b. preparing legal papers;
c. appearing in court;
d. reviewing all pleadings filed in the Debtor's Subchapter V
reorganization case;
e. preparing and pursuing confirmation of a plan of
reorganization; and
f. other necessary legal services.
The firm will charge these hourly fees:
Sheryl Giugliano, Partner $570 per hour
Michael Amato, Partner $615 per hour
Daniel McAuliffe, Of Counsel $545 per hour
Briana Enck, Associate $320 per hour
Partners and Of Counsel $450 - $825 per hour
Associates $275 - $420 per hour
Paraprofessionals $235 - $255 per hour
As disclosed in court filings, Ruskin Moscou Faltischek is a
"disinterested person" within the meaning of Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Sheryl P. Giugliano, Esq.
Michael S. Amato, Esq.
Ruskin Moscou Faltischek, P.C.
1425 RXR Plaza
East Tower, 15th Floor
Uniondale, NY 11556
Telephone: 516-663-6600
Email: sgiugliano@rmfpc.com
mamato@rmfpc.com
About Hal Luftig Company, Inc.
Hal Luftig Company, Inc., a theatrical producer in New York, filed
a petition under Chapter 11, Subchapter V of the Bankruptcy Code
(Bankr. S.D.N.Y. Case No. 22-11617) on Dec. 1, 2022, with $100,000
to $500,000 in assets and $1 million to $10 million in liabilities.
Charles Persing has been appointed as Subchapter V trustee.
Judge John P. Mastando III presides over the case.
Ruskin Moscou Faltischek, P.C. represents the Debtor as legal
counsel.
HIGGINS AG: Voluntary Chapter 11 Case Summary
---------------------------------------------
Debtor: Higgins AG, LLC
13101 Preston Road, Suite 404
Dallas, TX 75240
Business Description: The Debtor is part of the construction
industry.
Chapter 11 Petition Date: January 3, 2022
Court: United States Bankruptcy Court
Northern District of Texas
Case No.: 23-30032
Debtor's Counsel: Jason P. Kathman, Esq.
SPENCER FANE LLP
5700 Granite Parkway, Suite 650
Plano, TX 75024
Tel: 972-324-0300
Email: jkathman@spencerfane.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Chase McLendon as manager.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/KQG4BTI/Higgins_AG_LLC__txnbke-23-30032__0001.0.pdf?mcid=tGE4TAMA
HUNYGIRLS VENTURES: Wins Cash Collateral Access Thru Jan 12
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida, Tampa
Division, authorized Hunygirls Ventures, Inc. d/b/a/ Sun Graphic
Technologies, to use cash collateral on an interim basis in
accordance with the budget, with a 10% variance, pending a further
hearing set for January 12, 2023, at 2 p.m.
The Debtor's primary secured obligations were incurred in
connection with the Debtor's purchase of the business in 2019 using
a Small Business Administration 7a loan with CIBC Bank. The
Debtor's term loan with CIBC Bank has an approximate balance of
$520,376 secured by substantially all of the Debtor's personal
property.
Additionally, the Debtor has a line of credit with CIBC Bank with
an approximate balance of $199,926 also secured by substantially
all of the Debtor's personal property. Based upon the Debtor's
initial review of UCC-1 filings, CIBC Bank has a first-position
security interest in the Debtor's cash collateral.
The Debtor has an SBA Economic Injury Disaster Loan with an
approximate balance of $139,593 secured by substantially all of the
Debtor's personal property. Based upon the Debtor's initial review
of UCC-1 filings, the SBA has a second-position security interest
in the Debtor's cash collateral.
The Debtor also has a line of credit with Headway Capital, LLC with
an approximate balance of $55,000 and a line of credit with Celtic
Bank Corporation, serviced by BlueVine Inc., with an approximate
balance of $13,000. Based upon the Debtor's initial review of UCC-1
filings, it does not appear these creditors filed UCC-1 financing
statements. However, based upon review of loan documents in the
Debtor's possession, they may assert an interest in the Debtor's
cash collateral.
The Debtor took on purchase-money financing with ENGS Commercial
Finance secured by a specific piece of equipment with a balance of
approximately $221,000 and purchase-money financing with LEAF
Capital Funding secured by specific software licenses with a
balance of approximately $42,500. The Debtor does not believe these
creditors have an interest in cash collateral, but they will
receive notice of this motion.
Since January 2022, the Debtor began receiving funding from various
MCA funders that may claim an interest in the Debtorโs accounts
receivable and/or security interests in other assets of the Debtor.
The MCA Funders are Kalamata Capital, Silverline Services, Inc.,
Smart Business, Funding Metrics, LLC dba Lendini, Rapid Finance,
and White Road Capital LLC dba GFE Holdings.
As adequate protection with respect to the Lenders' interests in
the cash collateral, the Lenders are granted a replacement lien in
and upon all of the categories and types of collateral in which
they held a security interest and lien as of the Petition Date to
the same extent, validity and priority that they held as of the
Petition Date.
The Debtor is entitled to collect money from parties with
outstanding accounts receivable to the Debtor and no creditor or
party in interest will interfere with the Debtor's collection
actions. The Debtor will maintain records regarding the collection
of pre-petition amounts.
The Debtor will maintain insurance coverage for the collateral in
accordance with the obligations under the loan and security
documents.
A copy of the motion is available at https://bit.ly/3vE30re from
PacerMonitor.com.
A copy of the order and the Debtor's budget is available at
https://bit.ly/3ZeeuiO from PacerMonitor.com.
The budget provides for total expenses, on a weekly basis, as
follows:
$19,010 for Week 1;
$31,321 for Week 2;
$31,321 for Week 3; and
$31,321 for Week 4.
About Hunygirls Ventures, Inc.
Hunygirls Ventures, Inc. sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 22-05092) on
December 27, 2022.
In the petition signed by Michael R. Kisha, president, the Debtor
disclosed up to $10 million in both assets and liabilities.
Judge Roberta A. Colton oversees the case.
Matthew B. Hale, Esq., at Stichter, Riedel, Blain and Postler,
P.A., represents the Debtor as counsel.
INTERNATIONAL WEALTH: Court Confirms Amended Plan
-------------------------------------------------
Judge David S. Jones has entered an order confirming the Amended
Chapter 11 Plan of Reorganization under Subchapter V of Title 11 of
the Bankruptcy Code of International Wealth Tax Advisors, LLC.
The Debtor is authorized and directed to take all steps necessary
to effectuate consummation of the Plan and the payments and
distributions set forth therein, all in conformity with the terms
of the Plan.
The services of the Subchapter V Trustee, Yann Geron, Esq. is
terminated immediately upon the Effective Date of the Plan, and the
trustee is discharged as of that date.
The solicitation of the Plan has been accomplished in a proper and
fair manner satisfactory to the Court.
The Plan has been accepted by: (i) all impaired classes of
unsecured claims as required by 11 U.S.C. Section 1129(a)(8) and/or
(ii) at least one impaired class as required by 11 U.S.C. Section
1129(a)(10). The Plan provides that (a) all of the projected
disposable income of the Debtor to be received in the 5 year period
following the bankruptcy court's approval of the Plan will be
applied to make payments under the Plan and (b) the value of the
property to be distributed under the Plan in the 5 year period is
not less than the projected disposable income of the Debtor.
About International Wealth Tax Advisors
Founded in 2015 and located on Madison Avenue in the heart of New
York City, International Wealth Tax Advisors, LLC --
https://iwtas.com/ -- provides highly personalized, secure and
private global tax and accounting and consulting to clients
worldwide.
International Wealth Tax Advisors sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 21-10041)
on Jan. 11, 2021. At the time of filing, the Debtor estimated
assets of between $100,001 and $500,000 and liabilities of between
$1 million and $10 million.
Judge Shelley C. Chapman oversees the case.
The Debtor tapped Platzer, Swergold, Levine, Goldberg, Katz &
Jaslow, LLP as its counsel.
Yann Geron, Esq., is the Subchapter V Trustee appointed in the
Debtor's Chapter 11 case.
JPMorgan Chase Bank, creditor, is represented by A. Albert
Buonamici, Esq.
KC FXE AVIATION: Seeks to Hire Seese PA as Bankruptcy Counsel
-------------------------------------------------------------
KC FXE Aviation Investments, LLC and Terminal Ventures, LLC seek
approval from the U.S. Bankruptcy Court for the Southern District
of Florida to employ Seese, PA as bankruptcy counsel.
Seese will render these services:
(a) advise the Debtors generally regarding matters of
bankruptcy law in connection with their Chapter 11 cases;
(b) advise the Debtors of the requirements of the Bankruptcy
Code, the Federal Rules of Bankruptcy Procedure, and applicable
bankruptcy rules;
(c) prepare legal papers;
(d) negotiate with creditors, prepare, and seek confirmation
of a plan of reorganization and related documents, and assist the
Debtors with implementation of any plan;
(e) review executory contracts and unexpired leases;
(f) negotiate and document any debtor-in-possession financing
and exit financing; and
(g) render such other advice and services as the Debtors may
require.
Seese has agreed to receive general retainers, each in the amount
of $12,500, from the Debtors.
Michael Seese, Esq., the founding shareholder of the firm, will be
compensated at his hourly rate of $500, plus expenses.
Mr. Seese 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:
Michael D. Seese, Esq.
Seese, PA
101 N.E. 3rd Avenue, Suite 1500
Ft. Lauderdale, FL 33301
Telephone: (954) 745-5897
Email: mseese@seeselaw.com
About KC FXE Aviation Investments
KC FXE Aviation Investments, LLC and its affiliate, Terminal
Ventures, LLC, filed their voluntary petitions for relief under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No.
22-19815) on Dec. 26, 2022. In the petition signed by Ignacio
Martinez, designated representative, KC FXE Aviation Investments
disclosed $10 million to $50 million in both assets and
liabilities.
Judge Scott M. Grossman oversees the cases.
Michael D. Seese, Esq., at Seese PA serves as the Debtors' counsel.
KTS SOLUTIONS: Wins Cash Collateral Access Thru Jan 10
------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Virginia
authorized KTS Solutions, Inc. to use cash collateral on an interim
basis in accordance with the budget through January 10, 2023.
The Debtor is permitted to use cash collateral for ordinary course
purposes in accordance with the terms and conditions of the Interim
Order and the Debtor's budget, provided, however, that (a) Action
Capital Corporation is granted adequate protection and (b) except
on the terms of the Interim Order, the Debtor will be enjoined and
prohibited at any time from using the Alleged Prepetition
Collateral, including the cash collateral.
As previously reported by the Troubled Company Reporter, Action
Capital asserts a first priority lien secured claim against the
Debtor pursuant to a Factoring and Security Agreement dated July
11, 2011, as amended. Net of reserves, Action Capital asserts an
unpaid balance as of the Petition Date in the amount of not less
than $813,300.
Action Capital asserts a security interest in and lien upon, among
other things, a first priority lien on substantially all assets of
the Debtor.
The Debtor is directed to continue making payments to Action
Capital, or cause payments to be made to Action Capital, under the
Factoring and Security Agreement in the same manner payments were
made prior to the Petition Date.
To the extent the cash collateral is used by the Debtor and such
use results in a diminution of the value of the cash collateral,
Action Capital is entitled to a replacement lien in and to the
Alleged Prepetition Collateral to the same extent and with the same
priority as Action Capital's interest in the Alleged Prepetition
Collateral.
The liens and security interests granted will become and are duly
perfected without the necessity for the execution, filing or
recording of financing statements, security agreements and other
documents which might otherwise be required pursuant to applicable
non-bankruptcy law for the creation or perfection of such liens and
security interests.
A final hearing on the matter is set for January 10 at 11 a.m.
A copy of the order is available at https://bit.ly/3ikch4q from
PacerMonitor.com.
About KTS Solutions, Inc.
KTS Solutions, Inc. is a Virginia corporation that 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.
Judge Brian F. Kenney oversees the case.
Justin P. Fasano, Esq., at McNamee Hosea, P.A., is the Debtor's
legal counsel.
MADJAK LLC: Unsecureds Will Get 100% of Claims in Subchapter V Plan
-------------------------------------------------------------------
Madjak, LLC, filed with the U.S. Bankruptcy Court for the Western
District of Texas a Plan of Reorganization under Subchapter V dated
December 29, 2022.
The Debtor operates a Face to Face spa in the Avery Ranch
neighborhood of Northwest Austin. The company was formed on January
29, 2019. It is owned by Sean Matthew McGahey and Shelley Renee
McGahey.
The company experienced financial difficulty due to the Covid
pandemic. Because the company was too new it was unable to qualify
for PPP financing. The company failed to pay state and federal
taxes which led the IRS to seize $4,851.45 on September 21, 2022.
The company took out merchant cash advance loans to raise capital
but was unable to meet the demands of this expensive financing. The
company filed its chapter 11 petition on September 30, 2022.
The Plan Proponent's financial projections show that the Debtor
will have projected disposable income of $452,983.13. The final
Plan payment is expected to be paid on February 1, 2028.
This Plan of Reorganization proposes to pay creditors of the Debtor
from revenues received from operating its business.
Non-priority unsecured creditors holding allowed claims will
receive distributions, which the proponent of this Plan has valued
at 100 cents on the dollar based on total unsecured claims of
$199,508.06 and projected payments to unsecured creditors of
$199,508.06. This Plan provides for full payment of administrative
expenses and priority claims.
Class 10 consists of Unsecured Claims. Unsecured creditors shall be
paid the amount of Debtor's projected disposable income from the
confirmation date after payment of the Administrative Claims and
claims in classes 1-9 until their Allowed Claims are paid in full.
Unsecured creditors shall not receive post-confirmation interest or
attorneys' fees. It is estimated that distributions to unsecured
creditors will equal 100%. Payments will be made on an annual basis
with the first payment due on December 31, 2023. This Class is
impaired.
Class 11 consists of Equity Owners. Debtor's equity owners shall
retain their interest in the Debtor.
The plan shall be funded from collection of disposable income by
the Debtor.
Plan payments to creditors other than unsecured creditors shall be
made on a monthly basis with the first plan payment due thirty days
after the Effective Date. Plan payments shall be equal to the
projected net operating income. Plan payments shall be allocated in
the following order (known as the "Waterfall"):
* Fixed payments to Administrative claimants, Secured
Claimants and Priority Claims; and
* Residual to unsecured creditors.
A full-text copy of the Plan of Reorganization dated December 29,
2022, is available at https://bit.ly/3Clvx8I from PacerMonitor.com
at no charge.
Attorney for Debtor:
Stephen W. Sather, Esq.
Barron & Newburger, P.C.
5555 West Loop S 235
Bellaire, TX 77401-2100
Tel: (512) 649-3243
Email: ssather@bn-lawyers.com
About Madjak LLC
Madjak, LLC operates a med spa on Avery Ranch Road in Austin,
Texas.
Madjak sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. W.D. Tex. Case No. 22-10641) on Sept. 30, 2022, with
up to $50,000 in assets and up to $1 million in liabilities. Sean
Matthew McGahey, manager, signed the petition. Judge Tony M. Davis
oversees the case. Stephen W. Sather, Esq., at Barron & Newburger,
P.C., is the Debtor's counsel.
MIDAS CONSTRUCTION: Unsecureds Will Get 10% of Claims in Plan
-------------------------------------------------------------
Midas Construction, LLC, filed with the U.S. Bankruptcy Court for
the District of South Carolina a Small Business Plan of
Reorganization under Subchapter V dated December 29, 2022.
The Debtor was organized in June 2018. Its sole member is Demetrie
Wigfall. The entity was originally formed as a construction
business framing houses. In late 2018, the business was
transitioned to general freight hauling. The business is now
comprised of a 50%-50% mix of general freight and of construction
material transport.
In 2022, the Debtor borrowed monies pursuant to certain `merchant
cash advances for vehicle down payments and for vehicle
maintenance. The Debtor had been unable to generate sufficient
revenue to pay the ongoing expenses of the business and the
required payments to the merchants. The repayment terms were not
affordable, which was exacerbated by the accident in August 2022
and the downtime that was caused by needed repairs to the tractors.
The repair time has been very slow due to the supply chain issues
and the downturn in the economy.
Through November 9, 2022, Debtor was generating post-petition
income from operating with one vehicle. With the repair of the
second vehicle (Volvo), it believes that sufficient income will be
available to fund the Chapter 11 Plan. Debtor anticipates
generating monthly revenue of $12,000 from each of the vehicles.
The Chapter 11 Petition was filed on Sept. 29, 2022, when the Ports
were shut down due to the threat of Hurricane Ian. The October
2022 Monthly Report shows a slight increase in revenue as well as
the collection of the pre-petition accounts receivable. By the end
of 2022, revenue should reflect the estimates on which the Plan is
relying.
This Plan of Reorganization proposes to pay creditors of the Debtor
from future earnings. The Debtor does not anticipate that sales of
assets or loan proceeds will be necessary for continued operation.
The Debtor has the potential for post-petition financing and
believes that the financing will be necessary. Mr. Wigfall may
infuse additional working capital into the Debtor until the
revenues for the vehicles has stabilized.
Non-priority unsecured creditors holding allowed claims will
receive distributions, which the proponent of this Plan has valued
at approximately 10 cents on the dollar. This Plan also provided
for the payment of administrative and priority claims.
The final Plan payment is expected to be paid on June 30, 2028.
Class 4 is comprised of unsecured claims less than $999.99. The
Debtor shall pay the Class 4 claimants in a lump sum on the
Effective Date of the Plan. This class is impaired.
Class 5 is comprised of unsecured claims more than $1,000. The
Debtor shall pay the sum of $50.00 per month without interest on a
pro rata basis to the Class 5 claimants commencing on the Effective
Date of the Plan and continuing for period of 12 months. The Class
5 claimants shall be paid approximately 10% of their claims which
satisfies the liquidation yield. This class is impaired.
Class 6 claimants shall include any claims arising from early
termination of leases. The Debtor shall pay a yield of 10% to the
Class 6 Creditors, which is anticipated to require monthly
installments of $50.00 or more without interest on a pro rata basis
to the Class 6 claimants commencing six months after the Effective
Date of the Plan and continuing for a period of 54 months. In the
event that a Class 6 claimant fails to file its deficiency claim
prior to March 31, 2023, the Class 6 claimant shall not be entitled
to distributions under this Plan and the rejection of the lease
shall satisfy the obligation owed by the Debtor. This class is
impaired.
Class 7 is comprised of all unexpired leases and executory
contracts to be assumed. The Debtor has one unexpired lease
pursuant to an agreement with Cumberland Capital for a 2016 Volvo
VNL. Debtor proposes assuming the lease. The payments shall be
maintained in a current status. This class is unimpaired.
The Debtor has one equity interest, Demetrie Wigfall, who shall
retain his membership interest in the LLC.
A full-text copy of the Plan of Reorganization dated December 29,
2022, is available at https://bit.ly/3vHCH37 from PacerMonitor.com
at no charge.
Attorney for Debtor:
Richard A. Steadman, Jr., Esq.
Steadman Law Firm, P.A.
6296 Rivers Avenue, Suite 102
Charleston, SC 29406
Tel: (843) 529-1100
Email: rsteadman@steadmanlawfirm.com
About Midas Construction
Midas Construction, LLC filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. D. S.C. Case No.
22-02637) on Sept. 29, 2022, with up to $500,000 in both assets and
liabilities. Christine E. Brimm has been appointed as Subchapter V
trustee.
Judge Elisabetta G.M. Gasparini oversees the case.
Richard A Steadman, Jr., Esq., at Steadman Law Firm, P.A. is the
Debtor's counsel.
MILLION DOLLAR SMILE: Seeks Cash Collateral Access
--------------------------------------------------
Million Dollar Smile, LLC asks the U.S. Bankruptcy Court for the
Southern District of California for authority to use cash
collateral and provide adequate protection.
The Debtor requires the use of cash collateral to operate its
business, pay storage rent and other expenses.
The Debtor faced serious financial and legal challenges that led to
the chapter 11 filing. MDS had considerable and unsustainable
growth before and during the COVID-19 pandemic. Sales increased
tremendously and then fell off, the COVID boom and bust. MDS
expanded its sales, increased its costs, took out loans and then
the bottom fell out in or about summer of 2021. Hard money lenders
and others demanded payment, used hard ball tactics to collect
monies, including levies on credit card processing companies and
MDS' bank accounts and contacted business, including merchant
processors, with whom the Debtor did business and scared those
business away from working with MDS. MDS could not stay online
selling products and could not do larger wholesale sales given the
collection efforts.
J.P. Morgan Chase Bank likely holds the senior lien and likely is
fully secured and followed by First Corporate Solutions,
representative for an undisclosed entity, and it may be partially
secured.
The parties that also assert an interest in the Debtor's cash
collateral are First Corporate Solutions, Fasanara Securitisation,
S.A., and Funding Metrics, d/b/a Lindini.
The four creditors' claims total $195,860 plus accruing interest
and fees.
Priority taxes likely include a claim for income tax by the
Internal Revenue Service for $125,000 for years 2016 to 2019. The
Debtor believes it paid all taxes owed to the Franchise Tax Board
which is a scheduled party. Some of the IRS' claim likely is
non-priority. The Debtor's non-priority unsecured claims amount to
$1,137,760 plus the claims listed above as secured but which are in
fact wholly unsecured.
The Debtor contends the Senior Lenders' interests are adequately
protected for at least the following reasons:
a. MDS Debtor will continue to operate its business.
b. Operating the business creates additional revenues.
c. All assets are adequately insured.
d. Providing replacements lien to these two secured creditors
to the extent their prepetition lien attached to the Debtor's
property prepetition and with the same validity, priority, and
description of collateral. To be clear, if there is a defect in a
security interest prepetition, that same defect would apply
post-petition.
e. The Court may order MDS at the interim hearing or at a
final hearing to make adequate protection payments. MDS does not
propose to make adequate protection payments at least for a few
months so that it can start to get its finances on a firmer basis.
A copy of the Debtor's request is available at
https://bit.ly/3GbWMU9 from PacerMonitor.com.
About Million Dollar Smile, LLC
Million Dollar Smile, LLC offers oral hygiene and beauty products.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Cal. Case No. 23-00001-MM11) on
January 2, 2023. In the petition signed by Angelo De Simone,
managing member, the Debtor disclosed up to $500,000 in assets and
upt o $10 million in liabilities.
Steven R. Fox, Esq., at The Fox Law Corporation, Inc., is the
Debtor's legal counsel.
MORAN FOODS: S&P Lowers ICR to 'SD' on Distressed Debt Exchange
---------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on
Missouri-based wholesale distributor Moran Foods LLC (doing
business as Save-A-Lot) to 'SD' from 'CCC+' and lowered the
issue-level ratings on the super senior, first-lien, and
second-lien term loans to 'D' from 'B', 'CCC+', and 'CCC-',
respectively.
S&P will evaluate the company's revised capital structure and its
recent strategic initiatives over the next few days and expect to
raise our issuer credit rating on the company to the 'CCC'
category.
Moran Foods completed an amendment and extension of its credit
facilities in December 2022.
S&P said, "We view the exchange transaction as distressed. The
downgrade follows term amendments that consisted of a maturity
extension of the company's credit facilities to 2026, change in
yield, and migration of debtholders between the first- and the
second-lien term loan. We expect the transaction to be neutral in
terms of leverage because the outstanding debt is about the same,
but average interest rate will be lower." In addition, Moran Foods
will have a pay-in-kind interest payments option on its second-lien
term loan for the first two years to alleviate potential liquidity
pressures.
The transaction announcement happens almost three years after the
company's out-of-court restructuring in 2020. Delays in the
execution of its turn-around initiatives and the start of cash
interest payments on the first- and second-lien term loan pressured
free cash flow generation. In December 2021, Moran completed its
business model transition to becoming a wholesale distributor.
S&P will evaluate the company's revised capital structure and its
recent strategic initiatives over the next few days and expect to
raise our issuer credit rating on the company to the 'CCC'
category.
Missouri-based Moran Foods provides services and wholesale
distribution of grocery items, including private label products, to
third-party retailers (its retail partners) operating under the
Save-A-Lot name through license agreements. The company was founded
in 1983 and became a pure play wholesale operator in December 2021
after completing the conversion of its retail stores as part of its
transformation plan.
MUSCLE MAKER: Unit Crosses $100M Revenue Milestone in First 45 Days
-------------------------------------------------------------------
Muscle Maker, Inc. said its new wholly owned subsidiary, Sadot LLC,
has crossed the $100 million revenue milestone in its first 45 days
of operation. Sadot generated $54.19 million in revenue in
November and an additional $55.84 million in top line sales through
December 19th. Sadot, in its first 45 days of operation, has now
generated over $110 million in revenue. Total company year-to-date
revenue increased by 1,369% to $118.7 million since the end of Q3,
2022.
Sadot currently focuses on international shipping of physical food
commodity items such as wheat, soybean meal, corn, etc. Shipments
are via cargo ships that can range between 25,000 to 75,000 metric
tons. December shipments, through December 19th, included soybean
meal and corn shipped between the USA, Australia, South Korea and
the Philippines.
Michael Roper, CEO of Muscle Maker, stated "it has been our belief
that the creation of the new Sadot subsidiary and the
diversification of Muscle Maker into the shipping, farming and
sourcing of food commodity products could be a game changer for
Muscle Maker overall. To put the revenue Sadot has generated in
its first 45 day of operation through December 19th into
perspective, the total company revenue through Q3, 2022 was $8.67
million. The $110 million Sadot has generated through December
19th alone pushes the total company revenue for the entire
year-to-date upwards of 1,369% in just 45 days, raising our total
company year-to-date revenue to $118.7 million. We still have the
rest of December before closing out the year with a successful
initial launch of our new subsidiary, a more diversified company
and growth in our Pokemoto division."
On November 18th, Muscle Maker filed a Form 8K with the Securities
and Exchange Commission and issued a corresponding press release
announcing a new subsidiary, Sadot, and a material agreement
between Sadot and AGGIA. AGGIA will manage the day-to-day
operations of Sadot, focusing on shipping, trading, sourcing,
farming and production of physical food commodities.
Roper continued, "We are confident AGGIA has the experience and
expertise to implement the Sadot strategy, and we believe we have
had a positive start in the relationship generating over $110
million so far. While AGGIA focuses on the food commodity shipping
and farming side of the business, the current Muscle Maker team
continues to focus on growing the company through our Pokemoto
franchising efforts. Our strategy remains the same. As a matter
of fact, we recently announced we have now sold 55 Pokemoto
franchise agreements to date, opening 8 so far and have an
additional 47 to still be opened. This structure allows the Muscle
Maker team to focus on franchise growth while the AGGIA team
focuses on the food commodity shipping side of the business. We
believe this leverages each team's strengths while also creating a
more diversified company overall."
About Muscle Maker
Headquartered in League City, Texas, Muscle Maker, Inc. is the
parent company of "healthier for you" brands delivering food
options to consumers through traditional and non-traditional
locations such as military bases, universities, ghost kitchens,
delivery and direct to consumer ready-made meal prep options.
Brands include Muscle Maker Grill restaurants, Pokemoto Hawaiian
Poke and SuperFit Foods meal prep. Its menus highlight healthier
versions of traditional and non-traditional dishes and feature
grass fed steak, lean turkey, chicken breast, Ahi tuna, salmon,
shrimp, tofu and plant-based options.
For the nine months ended Sept. 30, 2022, Muscle Maker reported a
net loss of $5.56 million. The Company reported a net loss of
$8.18 million for the year ended Dec. 31, 2021, a net loss of
$10.10 million for the year ended Dec. 31, 2020, and a net loss of
$28.39 million for the year ended Dec. 31, 2019. As of Sept. 30,
2022, the Company had $25.38 million in total assets, $6.45 million
in total liabilities, and $18.93 million in total stockholders'
equity.
MUSCLEPHARM CORP: Has $12MM in DIP Loans from White Winston
-----------------------------------------------------------
MusclePharm Corporation asks the U.S. Bankruptcy Court for the
District of Nevada for authority to, among other things, use cash
collateral and obtain post-petition financing from White Winston
Select Asset Funds, LLC, or its designee, consisting of:
-- up to $2 million in new funding, with $1 million available
on an interim basis, under a DIP Note Facility; and
-- 80% of all post-petition receivables purchased up to $10
million under a DIP Factoring Facility.
The Debtor proposes to use the DIP Financing for immediate working
capital needs, general corporate purposes and administrative and
professionals costs and expenses in the case.
The Debtor's authority to use the DIP Financing or any Collateral,
including cash collateral, and the Lender's commitment to make
additional advances under the DIP Financing, will each terminate
upon the earlier to occur on the effective date of the Debtor's
ultimate plan of reorganization, or the sale or other disposition
of the Lender's collateral.
The events of default under the DIP credit agreement includes:
a. Failure to pay principal or interest on the DIP Note
Facility or any fees when due;
b. Failure of any representation or warranty of any of the
Borrowers contained in the Agreement to be true and correct in all
material respects when made;
c. Failure to comply with the Budget, subject to the permitted
variances;
d. The entry by a court of competent jurisdiction of an order
amending, modifying, staying, revoking or reversing the Interim DIP
Order or Final DIP Order or any other order of the Bankruptcy Court
approving the Debtor's use of cash collateral, as applicable,
without the express written consent of the Lender;
e. The appointment of a Chapter 11 trustee or an examiner in
the Bankruptcy Case; and
f. Failure to retain a Chief Restructuring Officer as set
forth in this Term Sheet.
The Debtor has an immediate and critical need to obtain financing
to enable the continuation (and restarting) of business operations,
including purchasing materials, shipping goods to customers, paying
employees, and to administer and preserve the value of its estate.
The Debtor projects an operational shortfall of $1.785 million
through March 26, 2023. The Debtor also requires access to
sufficient working capital to account for disruptions and delays in
the collection of receivables that may follow from the commencement
of the Chapter 11 Case, and to provide vendors with assurance of
payment for goods and services provided on a postpetition basis in
order to induce vendors to provide critically-needed goods and
services.
As security for all of the Debtor's obligations, its use of cash
collateral, and the priming of the Prepetition Liens by the DIP
Liens, the Lender will be granted:
i. super-priority administrative expense claims with priority
over all other administrative expenses under Section 364(c)(1) of
the Bankruptcy Code,
ii. automatically perfected security interests and liens under
Section 364(c)(2) and (c)(3) of the Bankruptcy Code in property of
the Debtor's estate, including, without limitation, all cash
collateral, and
iii. valid, binding, continuing, enforceable, fully perfected
first priority senior priming liens upon and security interest in
all of the Debtor's right, title and interest in the Collateral.
A copy of the motion is available at https://bit.ly/3X0gUjz from
PacerMonitor.com.
About MusclePharm Corp.
Headquartered in Denver, Colorado, MusclePharm Corporation
(OTCQB:MSLP) -- http://www.musclepharm.com/and
http://www.musclepharmcorp.com/-- is a lifestyle company that
develops, manufactures, markets and distributes branded nutritional
supplements. The Company offers a broad range of performance
powders, capsules, tablets, gels and on-the-go ready to eat snacks
that satisfy the needs of enthusiasts and professionals alike.
MusclePharm Corp. filed a petition for relief under Subchapter V of
Chapter 11 of the Bankruptcy Code (Bankr. D. Nev. Case No.
22-14422) on Dec. 15, 2022. In the petition filed by Ryan Drexler,
as CEO, the Debtor reported assets and liabilities between $10
million and $50 million.
The Honorable Natalie M. Cox is the case judge.
The Debtor is represented by Samuel A. Schwartz, Esq., at SCHWARTZ
LAW, PLLC.
NEWAGE INC: Unsecureds to Get 0% to 100% in Wind-Down Plan
----------------------------------------------------------
NewAge, Inc., et al., filed a First Amended Proposed Combined
Disclosure Statement and Joint Chapter 11 Plan of Liquidation.
As set forth in the Sale Motion, the Debtors sought to establish
certain procedures with respect to a competitive sale and marketing
process for their assets in a way that would maximize value for all
stakeholders in the Chapter 11 cases. The Debtors identified DIP
Financing, LLC, as the stalking horse bidder, with a purchase price
consisting of (i) a credit bid of the full outstanding amount of
the amounts owed it under the EWB Credit Facility; (ii) a credit
bid of the full amount of the DIP Facility; (iii) the payment of
all cure costs of assumed and assigned contracts and leases; and
(iv) the assumption of certain liabilities as set forth in the
Asset Purchase Agreement dated as of Aug. 30, 2022.
At the Sept. 20, 2022 hearing on the sale motion, the Debtors, the
Creditors Committee, and DIP Financing agreed on the record that
DIP Financing shall (if necessary) make a cash payment to the
Debtors for the sole purpose of funding a post-confirmation trust
(the "Liquidation Trust") so that remaining property in the
Debtors' estates, along with any necessary "true-up" payments, to
be made by DIP Financing, provide the Liquidation Trust a cash
balance of no less than $1,500,000 for the benefit of general
unsecured creditors after payment of allowed administrative
expenses and priority claims (the "GUC Settlement").
Pursuant to the Bid Procedures, interested parties were invited to
submit bids on the Debtors' assets no later than Oct. 6, 2022. No
qualified bids, aside from the Stalking Horse Bid, were received by
the Debtors. Accordingly, on Oct. 6, 2022, the Debtors filed a
notice designating DIP Financing as the successful bidder.
On Oct. 13, 2022, the Debtors and DIP Financing amended the Asset
Purchase Agreement to provide for the sale of the equity in
Holdings rather than its assets, for the benefit of Holdings'
creditors and to streamline certain licensing requirements for DIP
Financing.
On Oct. 17, 2022, the Bankruptcy Court entered an order approving
the sale of substantially all of NewAge's, Ariix's, and Morinda's
assets and Holding's equity to DIP Financing. The Sale Order fully
incorporates the terms of the GUC Settlement.
Since the sale closed on Oct. 17, 2022, the Debtors have continued
to work towards reconciling various accounting issues with DIP
Financing, which may affect creditors' recovery. At this time, the
Debtors and DIP Financing have been unable to come to an agreement.
If the parties are unable to come to an agreement, Court
intervention may be necessary.
After entry of the Sale Order, the Debtors have worked toward
preparing an orderly wind-down of the Chapter 11 Cases and the
proposal of a liquidating Chapter 11 plan. At the behest of the
Debtors, the Court entered an order establishing: (i) Dec. 16, 2022
at 5:00 p.m. (prevailing ET), as the general bar date (i.e.,
deadline) for filing prepetition claims, including claims asserting
administrative priority under Section 503(b)(9) of the Bankruptcy
Code for goods delivered within 20 calendar days prepetition; (ii)
Feb. 27, 2023, at 5:00 p.m. (prevailing ET), as the governmental
bar date; and (iii) Dec. 16, 2022, at 5:00 pm. (prevailing ET), as
the bar date for filing requests for payment of Administrative
Expense Claims (other than Accrued Professional Compensation
Claims) arising on or before Nov. 9, 2022.
At present, the remaining assets that will be used for distribution
to creditors consist of (i) the Liquidation Trust with an initial
principal amount of at least $1,500,000; (ii) causes of action
against certain of the Debtors' officers and directors in the
Kwikclick Lawsuit, which are being assigned to the Liquidation
Trust, and of which there may or may not be up to $35,000,000 of
D&O insurance coverage available; (iii) all other Causes of Action,
all of which causes of action are specifically preserved and
assigned to the Liquidation Trust; and (iv) any remaining Cash on
hand. The Debtors project that there will be $1,500,000 of net
distributable assets to the Liquidation Trust, in addition to claim
recoveries which amounts are currently undetermined.
Each holder of an Allowed Class 2 Claim will receive its pro rata
share of an interest in the Liquidation Trust:
* Class 2A General Unsecured Claims Against NewAge (Liquidation
Trust Class) total $279,142. Creditors will recover 0% to 100% of
their claims. Class 2A is impaired.
* Class 2B General Unsecured Claims Against Morinda (Liquidation
Trust Class) total $14,808,711. Creditors will recover 0% to 100%
of their claims. Class 2B is impaired.
* Class 2C General Unsecured Claims Against Ariix (Liquidation
Trust Class) total $942,263. Creditors will recover 0% to 100% of
their claims. Class 2C is impaired.
Each holder of an Allowed Class 3 Convenience Claim will receive a
Distribution within 30 days of the Effective Date equal to 50% of
its Allowed General Unsecured Claim unless the amount deposited in
the GUC Administrative Convenience Account is not sufficient to
allow for this percentage distribution, in which case the holders
of an Allowed Class 3 Claim will receive their Pro Rata Share,
which will be less than 50% of each Allowed General Unsecured
Claim. Class 3 convenience claims are as follows:
* Class 3A General Unsecured Claims Against NewAge
(Administrative Convenience Class) total $6,104. Creditors will
recover 0% to 100% of their claims. Class 3A is impaired.
* Class 3B General Unsecured Claims Against Morinda
(Administrative Convenience Class) total $211,642. Creditors will
recover 0%-100% of their claims. Class 3B is impaired.
* Class 3C General Unsecured Claims Against Ariix
(Administrative Convenience Class) total $31,694. Creditors will
recover 0%-100% of their claims. Class 3C is impaired.
Counsel for the Debtors:
Annette Jarvis, Esq.
Michael F. Thomson, Esq.
Carson Heninger, Esq.
GREENBERG TRAURIG, LLP
222 S. Main Street, Suite 1730
Salt Lake City, UT 84101
Telephone: (801) 478-6900
Facsimile: (801) 303-7397
E-mail: JarvisA@gtlaw.com
ThomsonM@gtlaw.com
Carson.Heninger@gtlaw.com
- and -
Alison Elko Franklin, Esq.
GREENBERG TRAURIG, LLP
3333 Piedmont Road, NE, Suite 2500
Atlanta, GA 30305
Telephone: (678) 553-2100
Facsimile: (678) 553-2212
E-mail: Alison.Franklin@gtlaw.com
- and -
Anthony W. Clark, Esq.
Dennis A. Meloro, Esq.
GREENBERG TRAURIG, LLP
222 Delaware Avenue, Suite 1600
Wilmington, DE 19801
Telephone: (302) 661-7000
Facsimile: (302) 661-7360
E-mail: Anthony.Clark@gtlaw.com
Dennis.Meloro@gtlaw.com
A copy of the Disclosure Statement and Chapter 11 Plan dated Dec.
21, 2022, is available at https://bit.ly/3WgfbGh from
PacerMonitor.com.
About NewAge Inc.
NewAge Inc. (Nasdaq: NBEV) -- http://www.NewAgeGroup.com/-- a
Utah-based company, commercializes a portfolio of organic and
healthy products worldwide primarily through a direct-to-consumer
(D2C) route to market distribution system across more than 50
countries. The company competes in three major category platforms
including health and wellness, inner and outer beauty, and
nutritional performance and weight management.
NewAge Inc. and certain of its subsidiaries, Ariix LLC, Morinda
Holdings, Inc., and Morinda, Inc., sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No.
22-10819) on August 30, 2022.
NewAge reported total assets of $310,902,000 against total
liabilities of $149,447,000 as of the bankruptcy filing.
Judge Laurie Selber Silverstein oversees the cases.
The Debtors tapped Greenberg Traurig, LLP as bankruptcy counsel and
SierraConstellation Partners, LLC as financial advisor. Houlihan
Lokey Capital, Inc. conducted the pre-bankruptcy marketing process
for the Debtors. Stretto is the claims agent.
The U.S. Trustee for Region 3 appointed an official committee of
unsecured creditors in the Debtors' Chapter 11 cases on Sept. 14,
2022. Cole Schotz P.C. and Dundon Advisers LLC serve as the
committee's legal counsel and financial advisor, respectively.
PRECISION 1 CONTRACTING: Case Summary & 12 Unsecured Creditors
--------------------------------------------------------------
Debtor: Precision 1 Contracting, Inc.
1 Martin Place
Port Chester, NY 10573
Business Description: The Debtor operates an HVAC contracting
business.
Chapter 11 Petition Date: January 4, 2023
Court: United States Bankruptcy Court
Southern District of New York
Case No.: 23-22003
Judge: Hon. Sean H. Lane
Debtor's Counsel: Scott A. Steinberg, Esq.
MELTZER, LIPPE, GOLDSTEIN & BREITSTONE, LLP
190 Willis Avenue
Mineola, NY 11501
Tel: 516-747-0300
Fax: 516-747-0653
Email: ssteinberg@meltzerlippe.com
Total Assets: $36,521
Total Liabilities: $3,000,526
The petition was signed by Corinne Pasqualini as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 12 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/7UTQNAA/Precision_1_Contracting_Inc__nysbke-23-22003__0001.0.pdf?mcid=tGE4TAMA
PRODUCE DEPOT: Seeks June 5, 2023 Extension for Plan Approval
-------------------------------------------------------------
Produce Depot USA LLC., filed a motion to extend the time to
confirm its Chapter 11 Plan for an additional one hundred 120 days,
through and including June 5, 2023.
According to the Debtor, this first requested extension of the time
period for confirmation is warranted and necessary to afford the
Debtor a meaningful opportunity to pursue the chapter 11
reorganization process and build a consensus among economic
stakeholders, all as contemplated by chapter 11 of the Bankruptcy
Code.
The first requested extension is necessary due to the fact, that
the time to confirm a plan is set to expire on Feb. 5, 2023, but
the hearing on the Debtor's Disclosure Statement, filed on Dec. 22,
2022, has not been scheduled yet and in the event the filed Chapter
11 Small Business Disclosure statement and/or plan of
reorganization are needed to be amended, the Debtor will need an
additional time in order to comply with the provisions of the
Bankruptcy Code.
Counsel for the Debtor:
Alla Kachan, Esq.
LAW OFFICES OF ALLA KACHAN, P.C.
2799 Coney Island Avenue, Ste 202
Brooklyn, NY 11235
Tel: (718) 513-3145
About Produce Depot USA
Produce Depot, LLC is a merchant wholesaler of grocery and related
products in Brooklyn, N.Y.
Produce Depot sought Chapter 11 bankruptcy protection (Bankr.
E.D.N.Y. Case No. 22-40412) on March 2, 2022, listing zero asset
and $1,660,488 in liabilities. On June 9, 2022, the case was
transferred to the U.S. Bankruptcy Court for the District of New
Jersey.
Alla Kachan, Esq., at the Law Offices of Alla Kachan, P.C. is the
Debtor's counsel.
QHC UPSTATE: Small Business Plan Confirmed by Judge
---------------------------------------------------
Judge Sean H. Lane of the U.S. Bankruptcy Court for the Southern
District of New York has entered an order confirming the Second
Amended Small Business Plan of Reorganization of QHC Upstate
Medical, P.C.
The Plan has been proposed in good faith and not by any means
forbidden by law. Any payment to be made in connection with the
Plan has been approved by the Court or is subject to approval by
the Court as reasonable. The Plan discloses the identity of the
post-confirmation Date management and ownership of the Debtor.
With respect to each class of Claims, such class has accepted the
Plan, has been deemed to accept the Plan or such class is not
impaired under the Plan. All impaired classes of Claims have
accepted the Plan, determined without including any acceptance of
the Plan by any insider holding a Claim within such class.
Confirmation is not likely to be followed by the liquidation, or
the need for further financial reorganization of the Debtor, other
than as expressly contemplated under the Plan. The Plan is a
consensual Plan. The Plan is fair and equitable to all classes of
creditors and Interests.
The exculpation provisions contained in the Plan are hereby
amended. The Plan, this Order, and their respective provisions
shall be binding upon the Debtor, any lessor or lessee of property
from or to the Debtor, and any and all creditors, holders of Claims
or Interest holders of the Debtor and any other party in interest
in the Chapter 11 Case, as well as any successor or assign of any
of the foregoing, whether or not the Claim or Interest of such
creditor, Interest holder or other party in interest is impaired
under the Plan and whether or not such creditor, Interest holder or
other party in interest has filed, or is deemed to have filed, a
proof of Claim or Interest or has accepted or is deemed to have
accepted, or has rejected or is deemed to have rejected, the Plan.
A copy of the Confirmation Order dated December 29, 2022, is
available at https://bit.ly/3WIkHS5 from PacerMonitor.com at no
charge.
About QHC Upstate Medical
QHC Upstate Medical, PC, was a medical services provider in several
sites in New York before being forced to shutter in mid-2021.
QHC Upstate Medical sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 22-22410) on July 5,
2022. In the petition filed by Seth Kurtz, president, the Debtor
estimated assets between $100,000 and $500,000 and liabilities
between $1 million and $10 million.
Judge Sean H. Lane oversees the case.
The Debtor tapped Davidoff Hutcher & Citron, LLP as bankruptcy
counsel and Anderson Kill, PC as special litigation counsel.
REVLON INC: Plan Has "Substantial Distribution" for Unsecureds
--------------------------------------------------------------
Revlon, Inc., et al., submitted a Joint Plan of Reorganization and
a Disclosure Statement.
Since the filing of the Chapter 11 cases, the Debtors and their
advisors have engaged the Debtors' key stakeholders regarding
various possible restructuring alternatives to effectuate a
value-maximizing restructuring transaction and create a sustainable
capital structure to position the Debtors for long-term success.
The Debtors' discussions with their stakeholders were ultimately
successful. After extensive negotiations, on Dec. 19, 2022, the
Debtors, the Consenting BrandCo Lenders, and the Creditors'
Committee, agreed to the terms of the restructuring set forth in
the Restructuring Support Agreement.
The Debtors, the Consenting BrandCo Lenders, and the Creditors'
Committee believe that the restructuring reflected in the Plan is
the best available option for the Debtors' stakeholders, Estates,
and go-forward businesses. Through the restructuring, the Debtors
will create a sustainable capital structure that positions the
Company for success in the demanding beauty industry. The Debtors
believe that the Plan results in appropriate leverage and liquidity
to enable the Company to execute on its Business Plan and capture
new market opportunities on a go-forward basis. The financial and
operational restructuring provided for in the Plan affords the
Company a "fresh start" and provides a foundation for the long-term
health of its business.
The Plan gives effect to the transactions described in the
Restructuring Support Agreement. Among other benefits, the Plan:
* reduces the Company's pro forma indebtedness by $2.7 billion
versus its existing capital structure (including the DIP
Facilities);
* capitalizes the Company with $1.8 billion of expected debt
financing under the Exit Facilities, which will be used, among
other things, to fund plan distributions;
* provides for an Equity Rights Offering in the amount of up to
$650 million for the purchase of New Common Stock of the
Reorganized Debtors, which is expected to be backstopped by the
Equity Commitment Parties, the proceeds of which will be used,
among other things, to fund plan distributions;
* provides the Reorganized Debtors with a minimum cash balance
as of the Effective Date of $75 million;
* provides for the discharge and cancellation of Interests in
Holdings and certain Claims on the Effective Date, and the issuance
of New Common Stock to Holders of applicable Claims on the
Effective Date;
* provides substantial cash distributions to Holders of Allowed
General Unsecured Claims and the issuance of New Warrants to
Holders of Allowed Unsecured Notes Claims, in each case, subject to
acceptance of the Plan by the relevant Class or Holders, as more
fully described below;
* allows the Debtors to pursue and consummate an Acceptable
Alternative Transaction if certain conditions are satisfied;
* provides for a global and integrated compromise and settlement
of all disputes, including, without limitation, the Financing
Transactions Litigation Claims, between and among the Debtors, the
Creditors' Committee, the Consenting BrandCo Lenders, and other
stakeholders in these Chapter 11 Cases; and
* has the support of the Creditors' Committee and the Ad Hoc
Group of BrandCo Lenders.
There are nine (9) creditor groups entitled to vote on the Plan
whose acceptances of the Plan are being solicited: Opco Term Loan
Claims (Class 4), BrandCo First Lien Guaranty Claims (Class 5),
BrandCo Second Lien Guaranty Claims (Class 6), BrandCo Third Lien
Guaranty Claims (Class 7), Unsecured Notes Claims (Class 8), Talc
Personal Injury Claims (Class 9(a)), Non-Qualified Pension Claims
(Class 9(b)), Trade Claims (Class 9(c)), and Other General
Unsecured Claims (Class 9(d).
As of the Petition Date, there was approximately $431.3 million of
unsecured note obligations consisting of the 6.25% Senior Notes due
2024 (the "Unsecured Notes") issued and outstanding pursuant to
that certain Unsecured Notes Indenture, dated August 4, 2016, by
and among RCPC, as issuer, and U.S. Bank National Association, as
indenture trustee. The Unsecured Notes are senior, unsecured
obligations of RCPC, and are guaranteed on a senior, unsecured
basis by the guarantors under the 2016 Term Loan Facility and the
ABL Facility, excluding Holdings and the foreign Debtors that are
party to the ABL Facility Credit Agreement and 2016 Credit
Agreement.
Under the Plan, Class 8 Unsecured Notes Claims total $441.4
million. Each Holder of an Allowed Unsecured Notes Claim will
receive:
(i) (A) if Class 8 votes to accept the Plan and the Creditors'
Committee Settlement Conditions are satisfied, in full and final
satisfaction, compromise, settlement, release, and discharge of
such Claim, such Holder's Pro Rata share of the Unsecured Notes
Settlement Distribution; or (B) if Class 8 votes to reject the
Plan or the Creditors' Committee Settlement Conditions are not
satisfied, no recovery or distribution on account of such Claim,
except as provided in clause (ii), if applicable, and all Unsecured
Notes Claims shall be canceled, released, extinguished, and
discharged, and of no further force or effect; provided that each
Consenting Unsecured Noteholder shall receive 50% of such Holder's
Pro Rata share of the Unsecured Notes Settlement Distribution (the
"Consenting Unsecured Noteholder Recovery"); provided, further,
that if the Bankruptcy Court finds that such Consenting Unsecured
Noteholder Recovery is improper, there shall be no such
distribution to Consenting Unsecured Noteholders under the Plan;
and
(ii) if an Acceptable Alternative Transaction occurs, such
Holder's Pro Rata share of Class 8's Pro Rata share (determined in
a manner to be agreed by the Debtors and the Creditors' Committee,
in consultation with the Required Consenting BrandCo Lenders) of
the Term Loan Distributable Sale Proceeds remaining after
satisfaction in full of Allowed Claims in Classes 4 through 7.
In addition, the Debtors shall pay the unpaid fees and expenses of
the Unsecured Notes Trustee as of the Effective Date of the Plan to
the extent included in the definition of Restructuring Expenses.
Class 8 is impaired.
Under the Plan, Class 9(a) Talc Personal Injury Claims total $50
million to $150 million, Class 9(b) Non-Qualified Pension Claims
total $50 million to $60 million, Class 9(c) Trade Claims total $60
million to $80 million, and Class 9(d) Other General Unsecured
Claims total $42 million to 62 million. Classes 9(a) to 9(d) are
impaired -- a classs will receive distributions in the event the
class accepts the Plan. All distributions to Class 8 Unsecured
Notes Claims, Class 9(a) Talc Personal Injury Claims, Class 9(b)
Non-Qualified Pension Claims, Class 9(c) Trade Claims, and Class
9(d) Other General Unsecured Claims are to be made from value
otherwise distributable to 2020 Term Loan Claims.
Each Holder of a Clas 9(d) Allowed Other General Unsecured Claim
will receive:
(i) (A) if Class 9(d) votes to accept the Plan and the
Creditors' Committee Settlement Conditions are satisfied, in full
and final satisfaction, compromise, settlement, release, and
discharge of such Claim, such Holder's Pro Rata share of the Other
GUC Settlement Distribution; or (B) if Class 9(d) votes to reject
the Plan or the Creditors' Committee Settlement Conditions are not
satisfied, no recovery or distribution on account of such claim,
except as provided in clause (ii), if applicable, and all Other
General Unsecured Claims shall be canceled, released, extinguished,
and discharged, and of no further force or effect; and
(ii) if an Acceptable Alternative Transaction occurs, such
Holder's Pro Rata share of Class 9(d)'s Pro Rata share (determined
in a manner to be agreed by the Debtors and the Creditors'
Committee, in consultation with the Required Consenting BrandCo
Lenders) of the Term Loan Distributable Sale Proceeds remaining
after satisfaction in full of Allowed Claims in Classes 4 through
7.
Counsel to the Debtors:
Paul M. Basta, Esq.
Alice Belisle Eaton, Esq.
Kyle J. Kimpler, Esq.
Robert A. Britton, Esq.
Brian Bolin, Esq.
PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP
1285 Avenue of the Americas
New York, NY 10019
Telephone: (212) 373-3000
Facsimile: (212) 757-3990
A copy of the Disclosure Statement dated Dec. 23, 2022, is
available at https://bit.ly/3FOMdWQ from PacerMonitor.com.
About Revlon Inc.
Revlon Inc. manufactures, markets and sells an extensive array of
beauty and personal care products worldwide, including color
cosmetics; fragrances; skin care; hair color, hair care and hair
treatments; beauty tools; men's grooming products; antiperspirant
deodorants; and other beauty care products. Today, Revlon's
diversified portfolio of brands is sold in approximately 150
countries around the world in most retail distribution channels,
including prestige, salon, mass, and online.
Since its breakthrough launch of the first opaque nail enamel in
1932, Revlon has provided consumers with high-quality product
innovation, performance and sophisticated glamour. In 2016, Revlon
acquired the iconic Elizabeth Arden company and its portfolio of
brands, including its leading designer, heritage and celebrity
fragrances.
Revlon is among the leading global beauty companies, with some of
the world's most iconic and desired brands and product offerings in
color cosmetics, skin care, hair color, hair care and fragrances
under brands such as Revlon, Revlon Professional, Elizabeth Arden,
Almay, Mitchum, CND, American Crew, Creme of Nature, Cutex, Juicy
Couture, Elizabeth Taylor, Britney Spears, Curve, John Varvatos,
Christina Aguilera and AllSaints.
Revlon sought Chapter 11 protection (Bankr. S.D.N.Y. Case No.
22-10760) on June 15, 2022. Fifty affiliates, including Almay,
Inc, Beautyge Brands USA, Inc., and Elizabeth Arden, Inc., also
sought bankruptcy protection on June 15 and June 16, 2022.
Revlon disclosed total assets of $2,328,093,000 against total
liabilities of $3,689,240,395 as of April 30, 2022.
The Hon. David S. Jones is the case judge.
The Debtors tapped Paul, Weiss, Rifkind, Wharton & Garrison, LLP as
bankruptcy counsel; Mololamken, LLC as special litigation counsel;
PJT Partners, LP as investment banker; KPMG, LLP as tax services
provider; and Alvarez & Marsal North America, LLC as restructuring
advisor. Robert M. Caruso and Matthew Kvarda of Alvarez & Marsal
serve as the Debtors' chief restructuring officer and interim chief
financial officer, respectively. Meanwhile, Kroll Restructuring
Administration, LLC is the Debtors' claims agent and administrative
advisor.
The U.S. Trustee for Region 2 appointed an official committee of
unsecured creditors on June 24, 2022. Brown Rudnick, LLP, Province,
LLC and Houlihan Lokey Capital, Inc. serve as the committee's legal
counsel, financial advisor and investment banker, respectively.
SEARS AUTHORIZED: Seeks to Hire Saul Ewing as Legal Counsel
-----------------------------------------------------------
Sears Authorized Hometown Stores, LLC and Sears Hometown Stores,
Inc. seek approval from the U.S. Bankruptcy Court for the District
of Delaware to hire Saul Ewing, LLP as their legal counsel.
The firm's services include:
a. providing legal advice with respect to the Debtors' powers
and duties in the continued operation of their businesses and
management of their properties;
b. if appropriate, preparing and pursuing approval of a
disclosure statement and confirmation of a Chapter 11 plan;
c. preparing legal papers;
d. appearing in court;
e. providing assistance, advice and representation concerning
any investigation of the assets, liabilities and financial
condition of the Debtors that may be required under local, state or
federal law or orders of the bankruptcy court or any other court of
competent jurisdiction;
f. providing counseling and representation with respect to the
assumption or rejection of executory contracts and leases, sales of
assets and other bankruptcy-related matters arising from the
Chapter 11 cases; and
g. other necessary legal services.
The firm will charge these hourly fees:
Partners $425 - $1,100 per hour
Counsel $440 - $850 per hour
Associates $285 - $450 per hour
Paraprofessionals $175 - $395 per hour
In accordance with Appendix B-Guidelines for reviewing fee
applications filed by attorneys in larger Chapter 11 cases, Saul
Ewing disclosed the following:
-- The firm has not agreed to any variations from, or
alternatives to, its standard or customary billing arrangements for
this engagement.
-- None of the professionals included in the engagement vary
their rate based on the geographic location of the bankruptcy
case.
-- Saul Ewing was retained by the Debtors on or about Oct. 12,
2022, for restructuring advice. The billing rates and material
terms for that engagement are the same as the rates and terms
proposed by the firm.
-- The Debtors approved or will be approving a prospective
budget and staffing plan for Saul Ewing's engagement for the
post-petition period, as appropriate.
Monique DiSabatino, Esq., a partner at Saul Ewing, disclosed in a
court filing that her firm is a "disinterested person" within the
meaning of Section 101(14) of the Bankruptcy Code.
Saul Ewing can be reached at:
Monique B. DiSabatino, Esq.
Saul Ewing, LLP
1201 N. Market Street, Suite 2300
Wilmington, DE 19899
Tel: (302) 421-6800
Fax: (302) 421-5873
Email: monique.disabatino@saul.com
About Sears
Sears Authorized Hometown Stores, LLC distributes products through
approximately 121 "Sears Hometown Stores," which are locally owned
and operated businesses that offer a selection of the trusted names
in home appliances, lawn and garden equipment, and tools.
Sears Authorized Hometown Stores and Sears Hometown Stores, Inc.
sought protection under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. D. Del. Lead Case No. 22-11303) on Dec. 12, 2022. In the
petitions signed by their chief executive officer, Elissa
Robertson, the Debtors disclosed $10 million to $50 million in
assets and $50 million to $100 million in liabilities.
Judge Laurie Selber Silverstein oversees the cases.
Saul Ewing, LLP and Gray & Company, LLC serve as the Debtors' legal
counsel and financial advisor, respectively. Stretto is the claims,
noticing and administrative agent.
SEARS AUTHORIZED: Seeks to Hire Stretto as Administrative Agent
---------------------------------------------------------------
Sears Authorized Hometown Stores, LLC and Sears Hometown Stores,
Inc. seek approval from the U.S. Bankruptcy Court for the District
of Delaware to hire Stretto Inc. as their administrative agent.
The Debtors require an administrative agent to:
a) assist with, among other things, solicitation, balloting,
and tabulation of votes, and prepare any related reports in support
of confirmation of a Chapter 11 plan, and in connection with such
services, process requests for documents;
b) prepare an official ballot certification and, if necessary,
testify in support of the ballot tabulation results;
c) assist with the preparation of the Debtors' schedules of
assets and liabilities and statements of financial affairs, and
gather data in conjunction therewith;
d) provide a confidential data room, if requested;
e) manage and coordinate any distributions pursuant to a
Chapter 11 plan; and
f) provide such other processing, solicitation, balloting, and
other administrative services, as may be requested from time to
time by the Debtors, the court or the Office of the Clerk of the
Bankruptcy Court.
The firm will be paid at these rates:
Consultant (Associate/Senior Associate) $70 - $200 per hour
Director/ Managing Director $210 - $250 per
hour
Solicitation Associate $230 per hour
Director of Securities & Solicitations $250 per hour
Sheryl Betance, a senior managing director at Stretto, disclosed in
a court filing that her firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Sheryl Betance
Stretto, Inc.
410 Exchange, Ste. 100
Irvine, CA 92602
Tel: (714) 716-1872
Email: Sheryl.betance@stretto.com
About Sears
Sears Authorized Hometown Stores, LLC distributes products through
approximately 121 "Sears Hometown Stores," which are locally owned
and operated businesses that offer a selection of the trusted names
in home appliances, lawn and garden equipment, and tools.
Sears Authorized Hometown Stores and Sears Hometown Stores, Inc.
sought protection under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. D. Del. Lead Case No. 22-11303) on Dec. 12, 2022. In the
petitions signed by their chief executive officer, Elissa
Robertson, the Debtors disclosed $10 million to $50 million in
assets and $50 million to $100 million in liabilities.
Judge Laurie Selber Silverstein oversees the cases.
Saul Ewing, LLP and Gray & Company, LLC serve as the Debtors' legal
counsel and financial advisor, respectively. Stretto is the claims,
noticing and administrative agent.
SEARS AUTHORIZED: Taps Gray & Company as Financial Advisor
----------------------------------------------------------
Sears Authorized Hometown Stores, LLC and Sears Hometown Stores,
Inc. seek approval from the U.S. Bankruptcy Court for the District
of Delaware to hire Gray & Company, LLC as their financial
advisor.
The firm's services include:
a. reviewing and assisting with communications and
negotiations with the Debtors' dealers, creditors and other
stakeholders, as may be required;
b. reviewing and assisting in the execution of the Debtors'
plans related to potential store closures and inventory sales, and
liquidation plans to assess the reasonableness of such plans and
implications on the Debtors' cash flow projections;
c. providing support to the Debtors in connection with their
restructuring efforts and providing testimony regarding the
Debtors' restructuring efforts; and
d. other necessary financial advisory services as requested by
the Debtors.
The Debtors will pay Gray & Company at hourly rates ranging from
$600 to $850 and will reimburse the firm for work-related
expenses.
The firm received a retainer in the amount of $25,000.
Stephen Gray, Esq., founder of Gray & Company, disclosed in a court
filing that his firm is a "disinterested person" within the meaning
of Section 101(14) of the Bankruptcy Code.
Gray & Company can be reached at:
Stephen S. Gray
Gray & Company, LLC
114 Naples Road,
Brookline, MA 02446
Tel: (617) 845-6404
Email: ssg@grayandcompanyllc.com
About Sears
Sears Authorized Hometown Stores, LLC distributes products through
approximately 121 "Sears Hometown Stores," which are locally owned
and operated businesses that offer a selection of the trusted names
in home appliances, lawn and garden equipment, and tools.
Sears Authorized Hometown Stores and Sears Hometown Stores, Inc.
sought protection under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. D. Del. Lead Case No. 22-11303) on Dec. 12, 2022. In the
petitions signed by their chief executive officer, Elissa
Robertson, the Debtors disclosed $10 million to $50 million in
assets and $50 million to $100 million in liabilities.
Judge Laurie Selber Silverstein oversees the cases.
Saul Ewing, LLP and Gray & Company, LLC serve as the Debtors' legal
counsel and financial advisor, respectively. Stretto is the claims,
noticing and administrative agent.
SHILO INN: Seeks Approval to Hire Stoel Rives as Local Counsel
--------------------------------------------------------------
Shilo Inn Portland/205, LLC seeks approval from the U.S. Bankruptcy
Court for the Western District of Washington to hire Stoel Rives,
LLP as its local counsel.
The Debtor requires a local counsel to review motions and ensure
that all filings comply with all local rules of the court; and to
assist its lead counsel, Levene, Neale, Bender, Yoo & Golubchik,
LLP, by providing insight and recommendations as to local
practice.
The firm will be paid at these rates:
Partners $445 - $1,120 per hour
Of Counsel $475 - $910 per hour
Associates $280 - $735 per hour
Paralegals/Professional Staff $230 - $520 per hour
Stoel Rives received a retainer in the amount of $15,000.
Bryan Glover, Esq., an associate at Stoel Rives, 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:
Bryan T. Glover, Esq.
Stoel Rives, LLP
600 University Street, Suite 3600
Seattle, WA 98101
Tel: (206) 624-0900
Email: bryan.glover@stoel.com
About Shilo Inn Portland/205
Shilo Inn Portland/205 LLC operates the "Shilo Inn" hotel in
Portland, Ore. The business is owned by Mark S. Hemstreet.
Shilo Inn Portland/205, along with several affiliates, first sought
Chapter 11 protection on March 20, 2022 (Bankr. D. Ore. Lead Case
No. 02-32682). Shilo Inn Portland/205's case was terminated on
March 30, 2004.
Hemstreet's Shilo Inn, Idaho Falls, LLC filed for Chapter 11
bankruptcy (Bankr. W.D. Wash. Case No. 20-42489) on Nov. 2, 2020.
Two more Shilo Inn hotels owned by Hemstreet -- Shilo Inn, Bend,
LLC, and Shilo Inn, Warrenton, LLC -- filed for Chapter 11
bankruptcy on Aug. 13, 2021 (Bankr. W.D. Wash. Case Nos. 21-41340
and 21-41341). The cases are pending and jointly administered
under Case No. 21-41340.
Shilo Inn Portland/205 again filed a petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. W.D. Wash. Case No.
22-41459) on Nov. 10, 2022. In the petition filed by Larry Chank,
as authorized representative, Shilo Inn Portland/205 reported
between $10 million and $50 million in both assets and
liabilities.
Judge Brian D. Lynch handles the Debtors' cases.
Levene, Neale, Bender, Yoo & Golubchik, LLP and Stoel Rives, LLP
serve as the Debtors' bankruptcy counsel and local counsel,
respectively.
SUMMER AVE: Ongoing Operations to Fund Plan Payments
----------------------------------------------------
Summer Ave LLC filed with the U.S. Bankruptcy Court for the
District of Massachusetts a Modified Third Amended Chapter 11 Plan
of Reorganization under Subchapter V dated Dec. 29, 2022.
The Debtor purchased 752-760 Sumner Avenue, Springfield,
Massachusetts on Sept. 23, 2011, for $765,000 by deed filed in the
Hampden County Registry of Deeds, Book 18926 Page 178. 752 760.
Summer Avenue consists of 5 parcels and are the only real property
owned by the Debtor. These properties have a total of 12
commercial units and 6 residential units.
The Covid-19 pandemic caused problems with the Debtor's rental
tenants, and from early 2020 the Debtor did not have sufficient
funds to pay the Community Loan Mortgage. However, in the months
leading up to the Chapter 11 filing, the Debtor was able to replace
tenants, and once again has been able to collect current rents from
its remaining tenants. Similarly, the Debtor was able to rent a
unit previously used by a restaurant, for a new restaurant tenant,
that would realize $2,000.00 per month of rent, although the
tenancy did not commence until June, 2022.
Due to non-payment of the Community Mortgage, a foreclosure sale
was scheduled for April 28, 2022. The Debtor's Chapter 11 case was
commenced to stay the foreclosure sale on April 28, 2022. On May 2,
2022, the United States Trustee appointed David A. Mawhinney to
serve as the trustee in this case pursuant to section 1183 of the
Bankruptcy Code (the "Subchapter V Trustee").
Class 6 consists of Allowed Convenience Claims, which are General
Unsecured Claims against the Debtor (i) that are Allowed in an
amount equal to or less than $20,000 or (ii) in an amount greater
than $20,000, but which the holder thereof elects on its ballot to
be Allowed in an amount no greater than $20,000 and to be treated
as a Convenience Claim. As of the date of this Plan, there are 3
undisputed Convenience Claims, with an aggregate Allowed amount of
approximately $30,571.01. Each holder of a Convenience Claim shall
receive, in full and final satisfaction of such Claim, within 45
days of the Effective Date, 25% of their unsecured claim. Class 6
is impaired.
Class 7 consists of any General Unsecured Claims against the Debtor
which are not Class 6 Convenience Claims. In full and complete
satisfaction, settlement, release and discharge of the Class 6
Claims, each holder of the Allowed Class 6 Claim shall receive cash
in an amount equal to such Claim's pro rata share of $5,000. The
$5,000 shall be funded 1 year after the Effective Date. If the
Debtor were to sell its real estate prior to one year after the
Effective Date, these claims would be paid upon the sale of the
property. To the extent that the Debtor produces any disposable
income on a yearly basis, the Debtor will pay that amount on the
second and third anniversary of the confirmation of the plan. Class
6 is Impaired.
Class 8 consists of holders of Interests in the Debtor. On the
Effective Date, each holder shall retain their Interests in the
Debtor in the same proportions that existed on the Petition Date.
As part of the Plan, the equity interest holder (and manager),
Louis Masaschi, will be providing the necessary funds for the
initial distributions. These include approximately $7,650 for Class
6 Convenience Creditors, $10,000 for the Trustee, and $1,000 for
Class 1 and any other claims.
This Plan will be funded from cash on hand, working capital, and
cash from ongoing business operations. The Debtor will continue to
operate in the ordinary course of business. Pursuant to ยง 1190(2)
of the Code, the Plan provides for the submission of all or such
portion of the future earnings of the Debtor as is necessary for
the execution of the Plan. To the extent necessary, the Debtor's
principal, Louis Masaschi, will make additional contributions to
account for any shortfalls.
A full-text copy of the Modified Third Amended Plan dated December
29, 2022, is available at https://bit.ly/3jR1kYw from
PacerMonitor.com at no charge.
Counsel for the Debtor:
Louis S. Robin, Esq.
Law Offices of Louis S. Robin
1200 Converse Street
Longmeadow, MA 01106
Tel. (413) 567-3131
Fax (413) 565-3131
Email: louis.robin@prodigy.net
About Summer Ave, LLC
Summer Ave, LLC, is a limited liability company that owns
commercial property, consisting of three buildings and two parking
lots, each on a separate parcel, with building addresses of (i)
431-435 White Street, (ii) 429 White Street and 752 Sumner Avenue,
and (iii) 760 Sumner Avenue, Springfield, Massachusetts.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Mass. Case No. 22-30140) on April 28,
2022. In the petition signed by Louis Masaschi, manager, the Debtor
disclosed $778,100 in assets and $4,058,600 in liabilities.
Judge Elizabeth D. Katz oversees the case.
The Law Offices of Louis S. Robin represents the Debtor as counsel.
TGPC PROPERTIES: Files Emergency Bid to Use Cash Collateral
-----------------------------------------------------------
TGPC Properties, LLC asks the U.S. Bankruptcy Court for the
District of Arizona for authority to use cash collateral.
The Debtor needs to use the revenue generated from operations to
continue day to day operations. The Debtor owns the real property
located at 5536 N. 6th Street, Phoenix, AZ 85012 where The
Gathering Place Church holds its worship services. Also located on
the Property in a separate building is a day care facility. The
Church also subleases the Property to other businesses for parking.
All of these activities provide income to the Debtor. The Church is
the sole member of the Debtor.
In 2018, the Gathering Place Church decided to remodel a building
located on the Debtor's property in Phoenix, Arizona to open a
cafe. The Debtor sought conventional lending, but was only able to
get funding from a hard money lender, Capital Fund II, LLC. TGPC
had difficulty staying ahead of the payment requirements from
Capital Fund.
There were substantial delays in construction that culminated in
significant delays in construction with the COVID-19 pandemic. TGPC
sought additional financing but had difficulties getting additional
funding during the pandemic.
In addition, TGPC had been aggressively trying to secure take out
financing for Capital Fund. TGPC made offers to purchase the debt
owed to Capital Fund which it rejected. Shortly before the
bankruptcy filing, TGPC made an offer for a replacement lender for
an amount that TGPC now understands was greater than the price that
Capital Fund actually sold its paper to 4, LLC.
Capital Fund had scheduled a trustee sale for the Property and it
refused to continue the trustee sale date in spite of the fact that
TGPC had obtained a refinance transaction for an amount that was
greater than Capital Fund actually sold the paper to 4, LLC. The
sale of the paper to 4, LLC occurred mere days before the Debtor
was forced to file bankruptcy and on the eve of the scheduled
trustee sale.
Because TGPC believes the value of the Property is greater than the
amount owed to Capital Fund/4, LLC, and did not want to lose the
Property, TGPC sought the advice of counsel and decided to file
bankruptcy.
The Debtor's proposed use of the income to maintain the business by
paying for the insurance and property loans, protects the lenders'
interests and reduces the possibility that the businesses will
decrease in value.
A copy of the motion is available at https://bit.ly/3GEIRaT from
PacerMonitor.com.
A copy of the budget is available at https://bit.ly/3Cni0xr from
PacerMonitor.com.
The budget provides for total expenses, on a monthly basis, as
follows:
$17,717 for January 2023;
$17,717 for February 2023;
$17,717 for March 2023;
$17,717 for April 2023;
$17,717 for May 2023; and
$17,717 for June 2023.
About TGPC Properties
TGPC Properties LLC is primarily engaged in renting and leasing
real estate properties.
TGPC Properties LLC filed a petition for relief under Chapter 11 of
the Bankruptcy Code (Bankr. D. Ariz. Case No. 22-08374) on Dec. 19,
2022. In the petition filed by Paul Johnson, as manager, the
Debtor reported assets and liabilities between $1 million and $10
million each.
The Debtor is represented by D. Lamar Hawkins, Esq., at GUIDANT
LAW, PLC, is the Debtor's legal counsel.
TOMS KING: Seeks Cash Collateral Access Thru Feb 1
--------------------------------------------------
TOMS King (Ohio) LLC and affiliates ask the U.S. Bankruptcy Court
for the Northern District of Ohio, Eastern Division, for authority
to use cash collateral and provide adequate protection through
February 1, 2023.
The Debtors require sufficient working capital and liquidity to
operate their business and fund the administrative expense of the
Chapter 11 Cases.
Prior to the Petition Date, the Debtors (other than TOMS King (Ohio
II) LLC and TOMS King III LLC) entered into a Credit Agreement,
dated as of March 7, 2014, by and among the Debtors (other than
TOMS King (Ohio II) LLC and TOMS King III LLC), as borrowers, Bank
of America, N.A., as administrative agent and lender, which was
amended and restated from time to time, including most recently
pursuant to the Fifth Amended and Restated Credit Agreement, dated
as of January 28, 2020, as well as by a forbearance agreement and
deferral agreement.
Pursuant to the terms of the Pre-Petition Credit Agreement, the
Debtors (other than TOMS King (Ohio II) LLC and TOMS King III LLC)
incurred (a) a term loan facility in an aggregate amount of $44
million; (b) a revolving credit facility in a principal amount of
up to $2.5 million, and (c) a development loan facility
reestablished in a principal amount of $5 million. The obligations
under the Pre-Petition Credit Agreement have an outside maturity
date of January 28, 2025. The Debtors also have a purchasing card
with Pre-Petition Lender which has a $200,000 purchasing limit as
of the Petition Date. As of the Petition Date, the aggregate
outstanding balance due under the Pre-Petition Credit Agreement was
approximately $35.494 million and the P-Card Agreement was
approximately $57,692, plus interest, costs and fees. The
obligations under the Pre-Petition Credit Agreement are secured by
first priority liens on and security interests in substantially all
assets of the Debtors.
The Debtors propose to provide adequate protection to the
Pre-Petition Secured Parties as follows, subject in all respects to
payment of the Carve-Out: (i) a Replacement Lien junior only to the
Carve-Out; the liens will have the same priority, validity, force,
extent, and effect as the liens that they replace, effective as of
the Petition Date, on: (a) all Pre-Petition Collateral of Agent
and/or Pre-Petition Lender, including all proceeds, profits, rents,
and products thereof; and (b) property acquired by the Debtors
after the Petition Date, which is of the same nature, kind, and
character as the Pre-Petition Collateral, and all proceeds,
profits, rents, and products thereof.
The Replacement Liens will be deemed automatically valid and
perfected with such priority as provided in the Interim Order,
without any further notice or act by any party that may otherwise
be required under any other law.
The "Carve Out" means the sum of:
a. with respect to professional fees and disbursements by the
professionals retained by the Debtors, pursuant to Bankruptcy Code
section 327 and/or section 363 (i) professional fees and
disbursements incurred on or prior to the receipt by the Debtors of
written notice of the occurrence of a Termination Event, in an
amount not to exceed the aggregate amounts approved pursuant to the
Budget and allowed by the Court and (ii) professional fees and
disbursements incurred following receipt by the Debtors of written
notice of the occurrence of a Termination Event, in an amount not
to exceed $100,000;
b. with respect to the professionals retained by the
Committee, if any, pursuant to Bankruptcy Code section 1103(a), the
lesser of (x) $50,000 and (y) an amount not to exceed the aggregate
amounts approved pursuant to the Budget and allowed by the Court
for the period prior to the receipt by the Debtors of written
notice of the occurrence of a Termination Event; and
c. statutory fees payable to the U.S. Trustee pursuant to 28
U.S.C. section 1930(a)(6), together with the statutory rate of
interest, and any fees payable to the Clerk of the Bankruptcy
Court, which Statutory Fees will not be subject to any budget.
These events constitute a "Termination Event" under the Interim
Order, unless waived in writing by the Pre-Petition Secured
Parties:
a. Failure of the Debtors to abide by the terms, covenants,
and conditions of the Interim Order or the Budget;
b. An application is filed by any Debtor for the approval of
(or an order is entered by the Court approving) any claim arising
under Section 507(b) of the Bankruptcy Code or otherwise, or any
lien in any of the Chapter 11 Cases, which is pari passu with or
senior to the Pre-Petition Obligations or the adequate protection
liens granted therein, unless consented to in writing by Bank of
America, N.A. (in its capacity as Agent and Pre-Petition Lender);
c. The commencement or support of any action by any Debtor or
any other authorized person against Bank of America, N.A. (in its
capacity as Agent and Pre-Petition Lender) to subordinate or avoid
any liens made in connection with the PrePetition Loan Documents or
to avoid any obligations incurred in connection therewith;
d. The Debtors' failure to comply with any of the milestones
set forth in the Interim Order;
e. TOMS King Services LLC fails and/or refuses to provide
support to the Debtors' operations and businesses through Closing;
f. The use of cash collateral for any purpose not authorized
by the Interim Order;
g. Failure of the Debtors to timely pay undisputed fees of the
U.S. Trustee pursuant to 28 U.S.C. section 1930;
h. Appointment of a Chapter 11 trustee or the appointment of
an examiner with expanded powers over one or more of the Debtors;
i. Termination of one or more of the Debtors' franchise
agreements with Burger King Corporation, other than for a store
closed with Pre-Petition Secured Lender's prior written consent;
j. Conversion of the Chapter 11 Cases to cases under Chapter 7
of the Bankruptcy Code;
k. The Chapter 11 Cases are dismissed;
l. The entry of an order by any other Court of competent
jurisdiction (other than the Final Order) reversing, staying,
vacating or otherwise modifying in any material respect the terms
of the Interim Order; or
m. The Debtors seek to obtain financing that does not satisfy
the Pre-Petition Obligations in full that seeks to prime Agent
and/or Pre-Petition Lender's lien on any of the Collateral not
otherwise entitled to be primed under the Pre-Petition Credit
Agreement.
A copy of the motion is available at https://bit.ly/3IhUPZ7 from
PacerMonitor.com.
About TOMS King (Ohio) LLC
TOMS King (Ohio) LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ohio Case No. 23-50001) on January 2,
2023. In the petition filed by Daniel F. Dooley, chief
restructuring officer, the Debtor disclosed up to $50,000 in assets
and up to $50 million in liabilities.
Richard K. Stovall, Esq., at Allen Stovall Neuman & Ashton LLP, is
the Debtor's legal counsel.
VERSACE BERTONI: Unsecureds Will Get 2.5% Dividend in 3 Years
-------------------------------------------------------------
Versace Bertoni Gelato, LLC, filed with the U.S. Bankruptcy Court
for the Southern District of Florida a Small Business Plan of
Reorganization dated December 29, 2022.
Debtor is in the food services industry holding ownership interests
in and managing gelato stores, primarily located in the state of
Florida.
Its largest secured creditor is Piero Salussolia Financing, LLC
and, according to its proof of claim, is owed a total of
$352,165.73 as of the date of the filing of Debtor's bankruptcy
petition on September 30, 2022. Debtor estimates that the value of
the collateral securing the Piero Salussolia Financing claim is
$0.00.
There is also approximately $1,644,302.09 of general unsecured debt
owed to various vendors and lenders that provided unsecured
extensions of credit to the Debtor prior to Debtor seeking
bankruptcy relief. There is also approximately $18,707.15 of
priority claims owed to the IRS (pursuant to a filed proof of
claim).
Following confirmation of this Plan and on the Effective Date,
Debtor, pursuant to the Asset Purchase Agreement (the "APA"), shall
sell, transfer, and convey all of its assets to KNSG Group, LLC, a
Florida limited liability company, which will continue the
operations of Debtor's business following the sale.
In consideration, KNSG will pay $50,000.00 to assist in funding the
Plan and will assume the obligations arising under the Plan, in
which Debtor proposes to pay Administrative Expenses in full,
Allowed Priority Claims in full, and pay the Allowed Unsecured
Claims, in the estimated percentages approved at confirmation, from
all of KNSG's disposable income based on the projections and
amounts due as of confirmation of the Plan.
Payments on account of Allowed Unsecured Claims will be over a
three-year period following confirmation of this Plan and shall be
paid in quarterly installments over the three-year period,
resulting in an estimated dividend of 2.5%. Alternatively, the
estimated 2.5% dividend on Allowed Unsecured Claims may be paid in
full on the Effective Date of the Plan.
Debtor's assets have total estimated value of $15,073.44.
KNSG will acquire all of Debtor's assets as a going concern,
including, but not limited to, Debtor's inventory, furnishings,
fixtures, equipment, goodwill, tradename, and all other
intellectual property associated therewith. As consideration for
the purchase, KNSG will pay $50,000.00 to assist in funding the
Plan and will assume the obligations arising under the Plan not
paid from Debtor's cash on hand as of the Effective Date, including
all unpaid Administrative Expenses. KNSG should be able to fund the
Plan from revenues from operations, but will remain responsible for
any shortfall.
On confirmation of the Plan, all property of Debtor, tangible and
intangible, including, without limitation, licenses, furniture,
fixtures and equipment, will vest with KNSG, free and clear of all
Claims and Equitable Interests except as provided in the Plan.
Debtor expects to have sufficient cash on hand to make the payments
required on the Effective Date (administrative claims and initial
quarterly distribution to unsecured creditors).
A full-text copy of the Plan of Reorganization dated December 29,
2022, is available at https://bit.ly/3GFMNYV from PacerMonitor.com
at no charge.
Counsel for Debtor:
Vincent F. Alexander, Esq.
Lewis Brisbois Bisgaard & Smith, LLP
110 SE 6th Street, Suite 2600
Fort Lauderdale, FL 33301
Telephone: (954) 728-1280
Email: vincent.alexander@lewisbrisbois.com
About Versace Bertoni Gelato
Versace Bertoni Gelato, LLC offers food items and services in
Miami-Dade County, Fla.
Versace Bertoni Gelato filed a petition for relief under Subchapter
V of Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No.
22-17688) on Oct. 1, 2022. In the petition filed by its manager,
Stefano Versace, the Debtor reported up to $50,000 in assets and up
to $10 million in liabilities. Aleida Martinez-Molina has been
appointed as Subchapter V trustee.
Judge Robert A. Mark oversees the case.
Vincent F. Alexander, Esq., at Lewis Brisbois Bisgaard & Smith, LLP
serves as the Debtor's legal counsel.
WALL VENTURES: Continued Operations to Fund Plan Payments
---------------------------------------------------------
Wall Ventures, Inc., filed with the U.S. Bankruptcy Court for the
Southern District of Indiana a Combined Small Business Chapter 11
Plan of Reorganization and Disclosure Statement dated January 2,
2023.
The Debtor operates a trucking service that is a specialty
last-mile delivery contractor for FedEx. The Debtor financed its
acquisition of rolling stock using traditional purchase money
financing but when that proved insufficient it turned to more
volatile sources of operating cash using internet lenders.
Operations have continued under the supervision of Steve Wall and
have been profitable post-petition. While FedEx frequently changes
its subcontractor compensation programs, in its current form the
Debtor expects to remain profitable. Given the equity in its
rolling stock and other operating equipment the Debtor has
continued to make pre-petition regular payments to its secured
creditors and lessors. Under the Plan those payments will
continue, and the Debtor demonstrates feasibility of its Plan by
successfully generating a profit after making such payments.
Cash generated by ongoing operations shall first be used to fund
administrative expenses, including professional and case Trustee
fees and expenses, secured and lease claims, and operating
expenses. The Plan pays priority claims in accordance with the
treatment allowed under the Code. After satisfaction of these
claims, general unsecured creditors shall be paid pro rata out of
all remaining Plan payments.
The Plan shall last for 36 months following the first payment made
under it, which is due within 30 days of the date the Confirmation
Order becomes a Final Order.
Class 3 consists of Allowed General Unsecured Claims, including
Pearl Capital, which claims shall receive a pro rata payment after
satisfaction of the superior class claims treated under the Plan up
to the full amount of the allowed claim of such creditor. Such
claims shall be allowed, settled, compromised, satisfied and paid
by a quarterly distribution of the greater of $20,000 or 100% of
the net profits of the Debtor for the preceding quarter calculated
in accordance with generally accepted accounting principles, less
such priority payments, for 12 quarters following confirmation of
the Plan. Payment of such claims is expressly subordinate to the
payment of priority claims under this Plan. Class 3 is impaired.
Class 4 consists of the Equity Interests, which interests shall be
retained by existing interest owners.
The Debtor shall continue to operate its business in accordance
with the projection of income, expense and cash flow attached
hereto, and shall pay its net after tax cash profit to satisfy
creditor claims.
A full-text copy of the Combined Plan and Disclosure Statement
dated January 2, 2023 is available at https://bit.ly/3IppW4P from
PacerMonitor.com at no charge.
Attorney for Debtor:
KC Cohen, Esq.
KC Cohen, Lawyer, PC
151 N. Delaware St., Ste. 1106
Indianapolis, IN 46204-2573
Telephone: (317) 715-1845
Facsimile: (317) 636-8686
Email: kc@smallbusiness11.com
About Wall Ventures Inc.
Wall Ventures, Inc. operates a trucking service that is a specialty
last mile delivery contractor for FedEx. The Debtor filed a Chapter
11 bankruptcy petition (Bankr. S.D. Ind. Case No. 22-03961) on Oct.
4, 2022, with as much as $1 million in both assets and liabilities.
Judge James M. Carr oversees the case. The Debtor is represented by
KC Cohen, Lawyer, PC.
WHITE RABBIT: Wins Cash Collateral Access Thru Jan 30
-----------------------------------------------------
The U.S. Bankruptcy Court for the Western District of Washington at
Vancouver authorized White Rabbit Ventures, Inc., dba Matrix
Roofing, and Home Solutions dba Matrix Roof+Home to use cash
collateral on a further interim basis in accordance with the budget
through January 30, 2023.
The U.S. Small Business Administration is granted a replacement
lien in the Debtor's postpetition assets, to the same extent,
validity, and priority it had in the Debtor's prepetition assets,
excluding any security interests in avoidance actions pursuant to
Sections 506(c), 544, 545, 547, 548, and 549 of the Bankruptcy
Code, and without prejudice to the ability of the Debtor or its
creditors to contest the amount, validity and priority of the
replacement lien.
A continued hearing on the matter is scheduled for January 30 at 9
a.m. via Zoom.
A copy of the Court's order is available at https://bit.ly/3GGsURy
from PacerMonitor.com.
About White Rabbit Ventures, Inc.
White Rabbit Ventures, Inc. sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. W.D. Wash. Case No. 22-40173) on
February 14, 2022. In the petition signed by Wendy J. Marvin, chief
executive officer, the Debtor disclosed up to $1 million in assets
and up to $10 million in liabilities.
Judge Mary Jo Heston oversees the case.
Geoffrey Groshong, Esq., at Groshong Law PLLC is the Debtor's
counsel.
WILLIAM HOLDINGS: Court Okays Appointment of Chapter 11 Trustee
---------------------------------------------------------------
Judge Deborah Saltzman of the U.S. Bankruptcy Court for the Central
District of California approved the appointment of Howard Ehrenberg
as the Chapter 11 trustee for William Holdings, LLC.
The appointment comes upon the application filed by the U.S.
Trustee for Region 16 to appoint a bankruptcy trustee in William
Holdings' Chapter 11 case.
Mr. Ehrenberg disclosed in a court filing that he has no
connections with the Debtor, creditors or any other parties in
interest.
About William Holdings
William Holdings, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. C.D. Calif. Case No. 22-14708) on Aug.
28, 2022. In the petition filed by its chief executive officer,
Kameron Segal, the Debtor reported $10 million to $50 million in
both assets and liabilities.
Judge Deborah J. Saltzman oversees the case.
The Debtor is represented by the Law Offices of Michael Jay Berger.
ZACHAIR LTD: Plan Administrator Taps Hirschler Fleischer as Counsel
-------------------------------------------------------------------
Lawrence Katz, the plan administrator for Zachair, Ltd.'s
bankruptcy estate, seeks approval from the U.S. Bankruptcy Court
for the District of Maryland to hire Hirschler Fleischer, P.C. as
his legal counsel.
The firm will represent the plan administrator in the investigation
and recovery of assets of the bankruptcy estate, assist in
fulfilling his responsibilities, and provide other legal services
at his request.
Hirschler Fleischer will be paid at these rates:
Lawrence A. Katz $565 per hour
Kristen E. Burgers $465 per hour
Allison P. Klena $290 per hour
As disclosed in court filings, Hirschler Fleischer is a
"disinterested person" within the meaning of Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Lawrence A. Katz, Esq.
Hirschler Fleischer, PC
1676 International Drive, Suite 1350
Tysons, VA 22102
Tel: (703) 584-8900
Email: lkatz@hirschlerlaw.com
About Zachair Ltd.
Clinton, Md.-based Zachair, Ltd. was formed by Dr. Nabil Asterbadi
to acquire Hyde Field, an airport for commercial and general
aviation. Hyde Field is located near Andrews Air Force Base,
National Harbor, Downtown Washington DC, and nearby Northern
Virginia. It offers a 3000' lighted runway with a day and night
instrument approach. For more information, visit
http://www.hydefield.com/
Zachair filed a Chapter 11 petition (Bankr. D. Md. Case No.
20-10691) on Jan. 17, 2020, with $10 million to $50 million in
assets and $1 million to $10 million in liabilities. Zachair
President Nabil J. Asterbadi signed the petition.
Judge Thomas J. Catliota oversees the case.
The Debtor tapped Whiteford Taylor & Preston, LLP as legal counsel,
and CC Services Corporation and Mendelson & Mendelson, CPAs, P.C.
as tax accountants.
On Nov. 15, 2022, the court confirmed the Debtor's Chapter 11 plan
of reorganization. Lawrence A. Katz, who previously served as the
Debtor's Chapter 11 trustee, was designated as plan administrator.
[^] Recent Small-Dollar & Individual Chapter 11 Filings
-------------------------------------------------------
In re Platinum Moving Services, Inc.
Bankr. D. Md. Case No. 22-17189
Chapter 11 Petition filed December 27, 2022
See
https://www.pacermonitor.com/view/3Z2P2QI/Platinum_Moving_Services_Inc__mdbke-22-17189__0001.0.pdf?mcid=tGE4TAMA
represented by: Diana C. Valle, Esq.
THE VALLE LAW FIRM, LLC
E-mail: diana.valle@vallelawfirm.com
In re First Fidelity Trust Services, Inc.
Bankr. S.D. Miss. Case No. 22-02666
Chapter 11 Petition filed December 27, 2022
See
https://www.pacermonitor.com/view/SVOCP4Y/First_Fidelity_Trust_Services__mssbke-22-02666__0001.0.pdf?mcid=tGE4TAMA
represented by: Herbert Irvin, Esq.
IRVIN & ASSOCIATES, PLLC
E-mail: iq.attys@gmail.com
In re Clare Investments LLC
Bankr. D. Nev. Case No. 22-50702
Chapter 11 Petition filed December 27, 2022
See
https://www.pacermonitor.com/view/K537TZY/CLARE_INVESTMENTS_LLC__nvbke-22-50702__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re V&K Jackson, Inc.
Bankr. N.D. Ala. Case No. 22-82237
Chapter 11 Petition filed December 29, 2022
See
https://www.pacermonitor.com/view/OH7H2NQ/VK_Jackson_Inc__alnbke-22-82237__0001.0.pdf?mcid=tGE4TAMA
represented by: Stuart M. Maples, Esq.
MAPLES LAW FIRM, PC
E-mail: kpickett@mapleslawfirmpc.com
In re Drita Pasha Kessler
Bankr. C.D. Cal. Case No. 22-11504
Chapter 11 Petition filed December 29, 2022
represented by: Leonard Pena, Esq.
In re Paul Volel, Jr.
Bankr. M.D. Fla. Case No. 22-05124
Chapter 11 Petition filed December 29, 2022
represented by: Buddy Ford, Esq.
In re Kevin Edward Gilmore
Bankr. N.D. Cal. Case No. 22-41323
Chapter 11 Petition filed December 30, 2022
In re EMS Billing Solutions, Inc.
Bankr. D. Colo. Case No. 22-15088
Chapter 11 Petition filed December 30, 2022
See
https://www.pacermonitor.com/view/4XT3S4Y/EMS_Billing_Solutions_Inc__cobke-22-15088__0001.0.pdf?mcid=tGE4TAMA
represented by: Sean Cloyes, Esq.
BERKEN CLOYES, PC
E-mail: sean@berkencloyes.com
In re Greenbook Realty Partners LLC
Bankr. N.D. Ga. Case No. 22-60619
Chapter 11 Petition filed December 30, 2022
See
https://www.pacermonitor.com/view/RUY3LHY/Greenbook_Realty_Partners_LLC__ganbke-22-60619__0001.0.pdf?mcid=tGE4TAMA
represented by: Leslie Pineyro, Esq.
JONES & WALDEN, LLC
E-mail: info@joneswalden.com
In re Faraji Enterprise, lLLC
Bankr. N.D. Ill. Case No. 22-14998
Chapter 11 Petition filed December 30, 2022
See
https://www.pacermonitor.com/view/D57CAEY/Faraji_Enterprise_lLLC__ilnbke-22-14998__0001.0.pdf?mcid=tGE4TAMA
represented by: William E. Jamison, Jr., Esq.
WILLIAM E. JAMISON & ASSOCIATES
E-mail: wjami39246@aol.com
In re R.W. Davidson Contracting LLC
Bankr. E.D. Ky. Case No. 22-30304
Chapter 11 Petition filed December 30, 2022
See
https://www.pacermonitor.com/view/A4TJNFA/RW_Davidson_Contracting_LLC__kyebke-22-30304__0001.0.pdf?mcid=tGE4TAMA
represented by: Neil C. Bordy, Esq.
SEILLER WATERMAN LLC
E-mail: bordy@derbycitylaw.com
In re The 3 Wiseme n LLC
Bankr. W.D. Pa. Case No. 22-22565
Chapter 11 Petition filed December 30, 2022
See
https://www.pacermonitor.com/view/Q7GSSPA/The_3_Wisemen_LLC__pawbke-22-22565__0001.0.pdf?mcid=tGE4TAMAhttps://www.pacermonitor.com/view/Q7GSSPA/The_3_Wisemen_LLC__pawbke-22-22565__0001.0.pdf?mcid=tGE4TAMA
represented by: Christopher M. Frye, Esq.
STEIDL & STEINBERG, P.C.
E-mail: chris.frye@steidl-steinberg.com
In re Kristal C. Owens
Bankr. W.D. Pa. Case No. 22-22566
Chapter 11 Petition filed December 30, 2022
represented by: Donald Calaiaro, Esq.
In re RW Welding and Construction, LLC
Bankr. N.D. Tex. Case No. 22-32431
Chapter 11 Petition filed December 30, 2022
See
https://www.pacermonitor.com/view/BS4MIBQ/RW_Welding_and_Construction_LLC__txnbke-22-32431__0001.0.pdf?mcid=tGE4TAMA
represented by: Eric A. Liepins, Esq.
ERIC A. LIEPINS
E-mail: eric@ealpc.com
In re Victor F. Alba
Bankr. C.D. Cal. Case No. 22-11514
Chapter 11 Petition filed December 31, 2022
represented by: Crystle Lindsey, Esq.
In re M.A.R. Designs & Construction, Inc.
Bankr. S.D. Tex. Case No. 23-70001
Chapter 11 Petition filed January 1, 2023
See
https://www.pacermonitor.com/view/JKTZL3Y/MAR_DESIGNS__CONSTRUCTION_INC__txsbke-23-70001__0001.0.pdf?mcid=tGE4TAMA
represented by: Antonio Martinez, Jr., Esq.
LAW OFFICE OF ANTONIO MARTINEZ, JR., P.C.
E-mail: martinez.tony.jr@gmail.com
In re Stephen M. Burkholder
Bankr. W.D. Tex. Case No. 23-50001
Chapter 11 Petition filed January 1, 2023
In re Seong Mun Chung and Hyun Shin Kim
Bankr. C.D. Cal. Case No. 23-10002
Chapter 11 Petition filed January 2, 2023
represented by: Andrew Moher, Esq.
In re Diane Marie Baggerly
Bankr. M.D. Fla. Case No. 23-00001
Chapter 11 Petition filed January 2, 2023
represented by: Richard Perry, Esq.
In re Norman's Investments Services, LLC
Bankr. N.D. Ga. Case No. 23-10010
Chapter 11 Petition filed January 2, 2023
See
https://www.pacermonitor.com/view/KOERIRQ/Normans_Investments_Services_LLC__ganbke-23-10010__0001.0.pdf?mcid=tGE4TAMA
represented by: Leon S. Jones, Esq.
JONES & WALDEN, LLC
E-mail: info@joneswalden.com
In re A&T Auto Sales
Bankr. W.D. Mo. Case No. 23-20001
Chapter 11 Petition filed January 2, 2023
See
https://www.pacermonitor.com/view/SCUHL5Y/AT_Auto_Sales__mowbke-23-20001__0001.0.pdf?mcid=tGE4TAMA
represented by: Justin Coke, Esq.
JUSTIN COKE
E-mail: cokelawfirm@gmail.com
In re Jorge Simon
Bankr. S.D. Tex. Case No. 23-30016
Chapter 11 Petition filed January 2, 2023
represented by: Susan Tran Adams, Esq.
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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
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.
Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
The Sunday TCR delivers securitization rating news from the week
then-ending.
TCR subscribers have free access to our on-line news archive.
Point your Web browser to http://TCRresources.bankrupt.com/and use
the e-mail address to which your TCR is delivered to login.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Philadelphia, Pa., USA.
Randy Antoni, Jhonas Dampog, Marites Claro, Joy Agravante,
Rousel Elaine Tumanda, Joel Anthony G. Lopez, Psyche A. Castillon,
Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and
Peter A. Chapman, Editors.
Copyright 2023. All rights reserved. ISSN: 1520-9474.
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are $25 each. For subscription information, contact Peter A.
Chapman at 215-945-7000.
*** End of Transmission ***