/raid1/www/Hosts/bankrupt/TCR_Public/230221.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Tuesday, February 21, 2023, Vol. 27, No. 51
Headlines
1111 INVESTMENT: Case Summary & Seven Unsecured Creditors
1356 WELLINGTON: March 15 Public Sale Auction Set
20205WY-01 LLC: Case Summary and One Unsecured Creditor
2M RESEARCH: Court OKs Cash Collateral Access Thru April 30
8TH AVENUE FOOD: $100M Bank Debt Trades at 34% Discount
AEARO TECHNOLOGIES: Committee Taps Messina Group as Claims Agent
AGOGIE INC: Seeks Cash Collateral Access
AKUMIN INC: Riadh Zine Has 8.24% Stake as of Dec. 31
AKUMIN INC: Stanley G. Dunford Has 6.15% Stake as of Dec. 31
ALMAZ TRANSPORTATION: Exclusivity Period Extended to June 21
AMC ENTERTAINMENT: S&P Lowers ICR to 'SD' on Distressed Exchange
AMENTUM HOLDINGS: S&P Alters Outlook to Negative, Affirms 'B' ICR
APEX SIERRA: Seeks Approval to Hire GREA as Real Estate Broker
ASTRO ONE: $525M Bank Debt Trades at 36% Discount
ATLANTIC ACCEPTANCE: Case Summary & 10 Unsecured Creditors
AUGSBURG UNIVERSITY: Moody's Alters Outlook on Ba1 Rating to Stable
AVAYA HOLDINGS: Moody's Lowers CFR to 'Ca' Amid Bankruptcy Filing
BASIC WATER: Exclusivity Period Extended to May 9
BEATO AUTO SALES: Bid to Use Cash Collateral Denied
BED BATH & BEYOND: To Close Canadian Stores in Bankruptcy
BELTWAY PLAZA: Case Summary & Six Unsecured Creditors
BERTUCCI'S RESTAURANTS: Wins Cash Collateral Access Thru March 7
BLACKBERRY LTD: Fifthdelta Ltd. Has 9.98% Stake as of Dec. 31
BOLTA US: Court OKs $7MM DIP Loan from SMP and Volkswagen
BON WORTH: May Use $210,233 of Cash Collateral Thru March 12
BOULDER CANYON: Seeks to Hire Skinner Law Firm as Legal Counsel
BOY SCOUTS: Insurers Ask Court to Reverse Chapter 11 Plan
BROSE CONSTRUCTION: Seeks to Hire BransonLaw PLLC as Counsel
BSPV-PLANO LLC: Plan Solicitation Period Extended to Feb. 28
BURKE BRANDS: Court OKs Interim Cash Collateral Access
CANO HEALTH: Capital World No Longer Owns Common Shares
CANO HEALTH: Suvretta Capital No Longer Owns Common Shares
CARESTREAM HEALTH: $540.8M Bank Debt Trades at 32% Discount
CARVER BANCORP: Posts $1.1 Million Net Loss in Third Quarter
CASTLE US: $295M Bank Debt Trades at 27% Discount
CELSIUS NETWORK: Hires A.M. Saccullo Legal as Special Counsel
CFN ENTERPRISES: Vince Kandis Resigns as President of Unit
CHINOS INTERMEDIATE 2: Moody's Alters Outlook on 'B2' CFR to Neg.
CITY LIVING KC: Seeks to Hire Numbers Don't Lie as Accountant
COIN & HAMMER: Seeks to Hire Dearfield Law Firm as Counsel
CONVERGEONE HOLDINGS: $1.11B Bank Debt Trades at 35% Discount
COOPER-STANDARD: Says Net Loss Narrowed to $215MM in 2022
COTIVITI INTERMEDIATE: Fitch Affirms B LongTerm IDR, Outlook Stable
COTY INC: Moody's Ups CFR to 'Ba3' & First Lien Loans to 'Ba2'
CPC ACQUISITION: $225M Bank Debt Trades at 42% Discount
CROWN COMMERCIAL: Wins Cash Collateral Access Thru March 16
CROWN SUBSEA: Moody's Rates New First Lien Bank Loans 'B1'
CUSTOM ALLOY: Wins Cash Collateral Access Thru Feb 25
DECATUR 429: Seeks to Hire James J. Rufo as Legal Counsel
DELPHI BEHAVIORAL: Asset Sale Proceeds to Fund Plan Payments
DIGIPATH INC: Posts $240K Net Loss in First Quarter
DIXIE HOME: Voluntary Chapter 11 Case Summary
DRY MORE: Unsecured Creditors to Get Share of Income for 60 Months
DRY MORE: Wins Interim Cash Collateral Access
EAGLE MECHANICAL: Court OKs Interim Cash Collateral Access
EMERALD ELECTRICAL: Court OKs Interim Cash Collateral Access
ENDO INTERNATIONAL: Committee Taps William Fry as Irish Counsel
ENDO INTL: Renaissance Technologies No Longer Owns Common Shares
ENVISION HEALTHCARE: $1B Bank Debt Trades at 80% Discount
ENVISION HEALTHCARE: $5.45B Bank Debt Trades at 68% Discount
EQUINOX HOLDINGS: Moody's Appends 'LD' Designation to 'Ca' PDR
ESCALON MEDICAL: Posts $6K Net Loss in Second Quarter
EVOKE PHARMA: Board Appoints Matthew D'Onofrio as President, COO
EXELA TECHNOLOGIES: Shay Capital Has 6.75% Stake as of Feb. 2
FARMHOUSE CREATIVE: Court OKs Cash Collateral Access Thru March 15
FARMHOUSE CREATIVE: Seeks to Hire Latham as Legal Counsel
FB DEBT: Court OKs Cash Collateral Access, $33MM DIP Loan
FRANKIE'S COMICS: Wins Interim Cash Collateral Access
FUSE GROUP: Incurs $122K Net Loss in First Quarter
G.A.H. BAR-B-Q: Court OKs Cash Collateral Access Thru March 15
GALAXY NEXT: Incurs $2.9 Million Net Loss in Second Quarter
GENESISCARE USA: EUR500M Bank Debt Trades at 71% Discount
GOLDEN KEY: Court OKs Interim Cash Collateral Access
GREEN ENVIRONMENTAL: Voluntary Chapter 11 Case Summary
GREENBRIER COS: S&P Alters Outlook to Negative, Affirms 'BB-' ICR
GREENHEART NY: Seeks to Hire Kamini Fox as Legal Counsel
GREENWAY HEALTH: S&P Downgrades ICR to 'CCC', Outlook Negative
GREER TRANSPORT: Gets OK to Hire Richard A. Perry as Legal Counsel
GROM SOCIAL: Lind Global Has 9.9% Stake as of Dec. 31
GROW GLIDE: Public Auction Set for February 23
GTT COMMUNICATIONS: $350M Bank Debt Trades at 40% Discount
GUITAR CENTER: Moody's Cuts CFR to B3 & Sr. Secured Notes to Caa1
GULFSLOPE ENERGY: Incurs $364K Net Loss in First Quarter
HALL AT THE YARD: Taps Andrew Yurasko of IHT Group as CRO
HAWAIIAN HOLDINGS: Incurs $240.1 Million Net Loss in 2022
HENRRY DELIVERY: Court OKs Interim Cash Collateral
HLMC TITLE: Gets Cash Collateral Access Thru May 31
HOMER CITY: $145M Bank Debt Trades at 28% Discount
HONX INC: Exclusivity Period Extended to July 31
ILLINOIS HSG DEV AUTH: S&P Lowers 2005 Rev. Bonds Rating to 'BB'
INGLESIDE AT KING FARM: Fitch Hikes IDR to 'B', Outlook Stable
INNOVATION PHARMACEUTICALS: Incurs $361K Net Loss in Second Quarter
INNOVATIVE DESIGNS: Incurs $225K Net Loss in 2022
ISABEL ENTERPRISES: Reaches Settlement with Class 3 & 5 Creditors
ISAGENIX INTERNATIONAL: $375M Bank Debt Trades at 59% Discount
ISTANBUL REGO: Taps Wisdom Professional Services as Accountant
JAF 27 LLC: Updates Several Loan Agreements; Files Amended Plan
JLK CONSTRUCTION: Court OKs Cash Collateral Access Thru March 21
JP INTERMEDIATE: $450M Bank Debt Trades at 32% Discount
K&N PARENT: S&P Upgrades ICR to 'CCC+' on Improved Liquidity
KENAN ADVANTAGE: Moody's Ups CFR to B2 & Secured Bank Loans to B1
KEYWAY APARTMENT: A&G Accepting Bids for Apartment Complex
KINTARA THERAPEUTICS: Posts $3.5 Million Net Loss in Second Quarter
KNB HOLDINGS: Moody's Lowers CFR to C Amid Bankruptcy Filing
KNOW LABS: Posts $3.8 Million Net Loss in First Quarter
LARRET PROPERTIES: Hires Gold Weems Bruser Sues as Legal Counsel
LEAFBUYER TECHNOLOGIES: Posts $95K Net Income in Second Quarter
LEGACY LOFTS: U.S. Trustee Unable to Appoint Committee
LIVEONE INC: Posts $2.6 Million Net Loss in Third Quarter
LTL MANAGEMENT: Exclusivity Period Extended to March 21
LUXE SPACES: Court OKs Cash Collateral Access Thru March 1
MARCH ON HOSPITALITY: Seeks to Hire Forshey & Prostok as Counsel
MARKAM TRANSPORT: Seeks to Hire Bultynck & Co as Accountant
MATHESON FLIGHT: Hearing on Exclusivity Extension Set for Feb. 22
MAVERICK GAMING: $310M Bank Debt Trades at 24% Discount
MED PARENTCO: S&P Downgrades ICR to 'CCC+', Outlook Negative
MERIDIAN HOLDING: Seeks to Hire Frank M. Wolff Law as Attorney
MILK SPECIALTIES: Moody's Withdraws 'B2' CFR on Debt Repayment
MOUNTAIN MOVING: Gets OK to Hire D. Craig Bookkeeping as Accountant
MOUNTAINSKY LANDSCAPING: Taps Overturf McGath as Special Counsel
NATIONAL PHARMACY: Files Emergency Bid to Use Cash Collateral
NERVIVE INC: Taps Onyx Asset as Intellectual Property Broker
NEUROEM THERAPEUTICS: Seeks to Hire Buddy D. Ford as Legal Counsel
NEWELL BRANDS: Fitch Lowers LongTerm IDR to 'BB', Outlook Negative
NORTH BROOKLYN: Seeks to Hire David J. Doyaga as Bankruptcy Counsel
O'CONNOR CONSTRUCTION: Taps Rochelle Mccullough as Legal Counsel
OAKWOOD DREAMS: Case Summary & Nine Unsecured Creditors
OBSTETRIC AND GYNECOLOGIC: Taps VRS Restructuring to Provide CRO
OLYMPIA SPORTS: Seeks to Hire Richardson Kontogouris as Accountant
OPULENT AMERICAS: Gets OK to Hire Great Neck Realty as Broker
PANTHER GUARANTOR II: Fitch Alters Outlook on 'B+' IDR to Positive
PARAMOUNT AIR: Gets OK to Tap Dodson Shelton & Nelson as Accountant
PARTY CITY: Provides Noteholders with Updated Business Plan
PRECISION 1 CONTRACTING: Taps Meltzer Lippe Goldstein as Counsel
PREMIER BRANDS: S&P Downgrades ICR to 'SD' on Distressed Exchange
PRETIUM PKG: $350M Bank Debt Trades at 29% Discount
PUG LLC: $327.5M Bank Debt Trades at 20% Discount
R.W. DAVIDSON: Seeks to Hire Seiller Waterman as Legal Counsel
R7 LEASE PURCHASE: Taps Whitsell and Company as Accountant
RAGSTER INVESTMENT: Court OKs Interim Cash Collateral Access
RAINMAKER HEALTH: Court OKs Cash Collateral Access Thru March 15
REVLON INC: D.J. Baker Resigns from Board of Directors
RIVERBED TECHNOLOGY: $900M Bank Debt Trades at 63% Discount
ROBERTSHAW US: $510M Bank Debt Trades at 40% Discount
ROCKLEY PHOTONICS: Seeks to Hire Kroll as Administrative Advisor
ROCKLEY PHOTONICS: Seeks to Hire Pillsbury Winthrop as Counsel
ROCKLEY PHOTONICS: Seeks to Tap Jefferies LLC as Investment Banker
SANUWAVE HEALTH: Opaleye Has 5.69% Stake as of Dec. 31
SCUNGIO BORST: Exclusivity Period Extended to May 8
SELAH MOUNTAIN: Gets OK to Hire Kutner as Bankruptcy Counsel
SENIOR CARE: Wins Cash Collateral Access Thru March 27
SERTA SIMMONS: Seeks to Hire Evercore Group as Investment Banker
SERTA SIMMONS: Seeks to Hire Weil Gotshal & Manges as Attorney
SILVERADO STREET: Taps Law Offices of Michael Jay Berger as Counsel
SONOMA PHARMACEUTICALS: Incurs $1.9 Million Net Loss in 3rd Quarter
SORRENTO THERAPEUTICS: Gets Court OK for Two 1st Day Motions
SORRENTO THERAPEUTICS: Hits Chapter 11 Bankruptcy Protection
STARRY GROUP: Case Summary & 30 Largest Unsecured Creditors
STRUCTURAL TECHNOLOGY: Hires David J. Hawks CPA as Accountant
TENTRR INC: Gets OK to Hire Capital Recovery Group as Appraiser
TEXAS CORE: Court OKs Interim Cash Collateral Access
TIMES SQUARE JV: Taps Emerald Capital Advisors as Financial Advisor
TMS INTERNATIONAL: Moody's Rates New $450MM Term Loan B 'B1'
TRAYLOR CHATEAU: Trustee Taps Realty Exchange as Realtor
TREES CORP: TCM Tactical Has 9.1% Stake as of Feb. 13
TUESDAY MORNING: Has $51.5MM in DIP Loans from Cantor Fitzgerald
UNIVERSITY OF ARTS: Fitch Cuts Rating on $47MM 2017 Bonds to 'BB-'
VA TECHNOSOLUTIONS: Wins Final OK on Cash Collateral Access
VECTRA CO: S&P Alters Outlook to Negative, Affirms 'B-' ICR
VITAL PHARMACEUTICALS: Gets More Time for Bankruptcy Plan
VOLEL PROFESSIONAL: Seeks Approval to Hire A+ Accounting and Tax
VOYAGER DIGITAL: Seeks to Hire Paul Hastings as Special Counsel
[^] Large Companies with Insolvent Balance Sheet
*********
1111 INVESTMENT: Case Summary & Seven Unsecured Creditors
---------------------------------------------------------
Debtor: 1111 Investment Holdings LLC
4381 W Flamingo Rd Suite 34302
Las Vegas, NV 89103
Business Description: The Debtor is primarily engaged in renting
and leasing real estate properties.
Chapter 11 Petition Date: February 20, 2023
Court: United States Bankruptcy Court
District of Nevada
Case No.: 23-10596
Judge: Hon. August B. Landis
Debtor's Counsel: Seth D Ballstaedt, Esq.
FAIR FEE LEGAL SERVICES
8751 W. Charleston Blvd.
Suite 220
Las Vegas, NV 89117
Tel: (702) 715-0000
Fax: (702) 666-8215
Email: help@bkvegas.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Manish Patel as chief executive
officer.
A full-text copy of the petition containing, among other items, a
list of the Debtor's seven unsecured creditors is available for
free at PacerMonitor.com at:
https://www.pacermonitor.com/view/AQAD34Y/1111_INVESTMENT_HOLDINGS_LLC__nvbke-23-10596__0001.0.pdf?mcid=tGE4TAMA
1356 WELLINGTON: March 15 Public Sale Auction Set
-------------------------------------------------
Under Section 1-101 et. seq. of the Illinois Uniform Commercial
Code and pursuant to the terms and provisions contained in that
certain pledge and security agreement dated as of July 10, 2018,
and executed by 1356 Wellington Mezz Owner LLC and 3015 Southport
Mezz Owner LLC ("Debtor") and Bradford Allen Funding Company LLC,
Bradford Allen will sell vial auction at public sale on March 15,
2023, at 11:00 a.m., at the offices of Robbins DiMonte Ltd., 180 N.
La Salle Street, Suite 3300, Chicago, Illinois, in accordance with
the terms and conditions, following described property: 100% of the
legal and beneficial limited liability company interests in 1356
Wellington Mezz Owner LLC and 3915 Southport Mezz Owner LLC.
The sale sale is being enforce Bradford Allen's rights in the
collateral to satisfy the indebtedness of the Debtor to Bradford
Allen in the approximate amount of $2,595,752.15 as of Jan. 31,
2023, with default interest and other charges, including attorney's
fees and out-of-pocket expenses, continuing to accrue. In addition
to the auction being conducted in person, the auction will be held
virtually on Zoom and recorded.
The terms of the sale will be as follows: All bids must be given
orally or in writing at or before the time of sale. In conjunction
with such bid, a bidder must tender to the lender a deposit equal
to 5% of the proposed purchase price for the collateral. Bradford
Allen will not be obligated to accept any bid if it deems the bid
inadequate under any circumstance. The successful bidder, if any,
upon payment of the bid price, will receive from Bradford Allen an
assignment of 100% of the legal and beneficial limited liability
company interest in the Debtor, 1356 Wellington Mezz Owner and 3015
Southport Mezz Owner LLC. Other than a warranty of the existence
of Bradford Allen's security interest in the collateral, no
representations or warranties of any kind are or will be given by
Bradford Allen at the time of such assignment.
Persons interested in bidding must direct all written bids, all
requests for information, all requests for Zoom invitation to the
auction, and all other questions or comments to:
Emily C. Kaminski
Robbins DiMonte Ltd.
180 N. LaSalle St., Suite 3300
Chicago, IL 60601
Tel: 312-456-0284
Fax: 312-782-6690
Email: ekaminski@robbinsdimonte.com
20205WY-01 LLC: Case Summary and One Unsecured Creditor
-------------------------------------------------------
Debtor: 20205WY-01, LLC
743 Hilldale Avenue
Berkeley, CA 94705
Business Description: The Debtor is a Single Asset Real Estate
(as defined in 11 U.S.C. Section 101(51B)).
The Debtor owns in fee simple title a
property located at 743 Hilldale Avenue
Berkeley, California valued at $1.6 million.
Chapter 11 Petition Date: February 20, 2022
Court: United States Bankruptcy Court
Northern District of California
Case No.: 23-40185
Debtor's Counsel: David M. Goodrich, Esq.
GOLDEN GOODRICH LLP
650 Town Center Drive
Suite 600
Costa Mesa, CA 92626
Tel: (714) 966-1000
Fax: (714) 966-1002
Email: dgoodrich@go2.law
Total Assets: $1,600,065
Total Liabilities: $1,103,433
The petition was signed by Victoria Haas as member.
The Debtor listed LS Carlson Law, PC as its only unsecured creditor
holding a claim of $6,000.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/FGH67GI/20205WY-01_LLC__canbke-23-40185__0001.0.pdf?mcid=tGE4TAMA
2M RESEARCH: Court OKs Cash Collateral Access Thru April 30
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Texas, Fort
Worth Division, authorized 2M Research Services, LLC and Marcus E.
Martin to use cash collateral on an interim basis in accordance
with the budget, with a 10% variance, through April 30, 2023.
The Debtors require the use of cash collateral to continue the
operation of their business. 2M Research is directed to pay
Pragmatic Financial, LLC $65,000 per month as adequate protection
payments no later than the 25th of each calendar month. However,
any payments attributable to services performed by 2M Research
pursuant to the pledged Agency Contracts during the interim cash
collateral period and ultimately received by Pragmatic will be
considered part of the $65,000 payment for that month and can be
deducted from the final total forwarded by 2M Research at the end
of the month.
The Adequate Protection Payments including the payments received
pursuant to the Agency Contracts. The pledged Agency Contracts are
identified as follows:
a. Master Services Contract including Statement of Work No.
MR79604-UCHEI-2020 entered into with UnitedHealth Group;
b. the HR Variants Study contract entered into with
Astrazeneca/Covance, as set forth in paragraph 5 of the Pragmatic
Forbearance Agreement;
c. Department of Defense contract for Clinical Research
Support, W81XWH20C0029;
d. Contract HHSP23320150092I with Office of Medicare Hearings
and Appeals, and for the same contract on Order No. 75P00119F37004
with Administration for Children and Families; and
e. Order 1231981F0081 with the United States Department of
Agriculture also known as Supplemental Nutrition Assistance Program
PII Project.
In addition to the pledged Agency Contracts, Pragmatic asserts a
security interest in the receivables and payments associated with
the following government contracts subject to Pragmatic's blanket
UCC-1 lien:
a) SBA – Contract 73351018A0020, Order No. 73351022F0099 for
$340,692 value signed on 7/7/2022 ($90,851 in value between August
2022 and January 2023)
b) HUD – Contract 86614922C00007 for $1,243,372 signed on
9/19/2022
c) CDC – Contract GS00F216GA, Order No. 75D30122F15724 for
$1,590,054 signed on 9/28/2022
d) HUD – Contract GS00F216GA, Oder No. 86614822F0045 for
$499,891 signed on 9/22/2022
e) IML – Contract GS00F216GA, Oder No. 53987122F0017 for
$199,771 signed on 9/27/2022
f) HUD – Contract GS-00F-216GA, Order No.
86614621F00013/P00002 for $732,376 signed on 11/16/2021
g) SBA – Contract 73351018A0020, Order No. 73351022F0131 for
$249,062 signed on 9/1/2022
h) DOE – Contract 91990022C0068 for $296,283 base year,
$943,085 total, signed on 8/9/2022
i) SAMHSA, DHHS – Contract 75S20322D00033 for $1.2 billion
IDIQ signed on 7/18/2022
Any secured creditor that holds a valid unavoidable security
interest in prepetition cash or cash equivalents for the applicable
the Debtor's use of cash collateral, to the extent that the
Debtor's use of cash collateral results in a diminution in value of
the Lender's interest in the cash collateral as of the Petition
Date, each Lender is granted a replacement lien in the Debtor's
assets that serve as collateral under each Lenders' applicable
agreements, in the same order of priority that existed as of the
Petition Date.
As additional partial adequate protection for the Debtor's use of
cash collateral, to the extent of any diminution in value and a
failure of the other adequate protection provided by the Order, the
Lenders will have an allowed superpriority administrative expense
claim in the case and any successor case entered into a secured
loan transaction with Pragmatic Financial LLC pursuant to which
Pragmatic lent 2M Research $3.8 million and bearing interest at 35%
per year. Martin executed a guaranty of the Pragmatic Loan.
The Replacement Liens are valid, perfected, enforceable and
effective as of the Petition Date without the need for any further
action by the Debtors or the secured creditors, or the necessity of
execution or filing of any instruments or agreements.
A copy of the order is available at https://bit.ly/3k60Kqn from
PacerMonitor.com.
About 2M Research Services LLC
2M Research Services LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 23-40271) on
January 30, 2023. In the petition signed by Marcus Martin, manager
and member, the Debtor disclosed up to $10 million in both assets
and liabilities.
Judge Mark X. Mullin oversees the case.
Martin Averill, Esq., at Roquemore Skierski PLLC, represents the
Debtor as legal counsel.
8TH AVENUE FOOD: $100M Bank Debt Trades at 34% Discount
-------------------------------------------------------
Participations in a syndicated loan under which 8th Avenue Food &
Provisions Inc is a borrower were trading in the secondary market
around 65.7 cents-on-the-dollar during the week ended Friday,
February 17, 2023, according to Bloomberg's Evaluated Pricing
service data.
The $100 million facility is a Term loan that is scheduled to
mature on October 1, 2026. The amount is fully drawn and
outstanding.
8th Avenue Food & Provisions, Inc. provides food catering services.
The Company supplies organic and conventional peanut and other nut
butters, baking nuts, raisins, other dried fruit, and trail mixes
to leading grocery retailers, top food service distributors, and
industrial bakeries.
AEARO TECHNOLOGIES: Committee Taps Messina Group as Claims Agent
----------------------------------------------------------------
The official committee of tort claimants appointed in the Chapter
11 cases of Aearo Technologies, LLC and its affiliates seeks
approval from the U.S. Bankruptcy Court for the Southern District
of Indiana to employ The Messina Group and Shannon R. Wheatman, Ph.
D., particularly, as a claims noticing expert.
The firm will render these services:
a. review, analyze, critique and advise the Respirator
Committee regarding the sufficiency and potential effectiveness of
the claims noticing procedures and claim form proposed by the
Debtors;
b. assist the Respirator Committee in negotiating and
implementing necessary changes to the Debtors' proposed noticing
procedures and proposed claim form;
c. assist the Respirator Committee in developing its own
proposed noticing procedures and claim form, if necessary;
d. provide expert analysis and testimony including any
necessary deposition, trial or other court related testimony
related to the claim noticing procedures and proposed claim form;
e. participate in in-person and telephonic meetings of the
Respirator Committee related to claims issues, as necessary;
f. represent the interests of the Respirator Committee in
proceedings before this Court and other courts or tribunals with
respect to any objection to the Bar Date Motion that may be filed;
and
g. perform such other services as may be necessary and
appropriate, or as may be requested by the Respirator Committee in
accordance with the committee's powers and duties.
The firm will pe paid at these rates:
Expert $650/hour
Media Planner $350/hour
Project Management $350/hour
Graphic Design $150/hour
TMG and its members and employees are disinterested persons within
the meaning of Section 101 of the Bankruptcy Code, as disclosed in
the court filings.
TMG provides the following responses to the questions posed in
paragraph D.1 of the United States Trustee's Appendix B Guidelines
for Review Applications for Compensation and Reimbursement of
Expenses Filed under United States Code by Attorneys in Larger
Chapter 11 Cases:
a. TMG has not agreed to any variations from, or alternatives
to, its standard or customary billing arrangements for this
engagement.
b. TMG's professionals do not vary their rates based on the
geographic location of the bankruptcy case.
c. TMG did not represent the Respirator Committee in the 12
months prior to the filing of the petitions in these cases.
d. As of the date of filing, the Respirator Committee has not
approved a prospective budget or staffing plan.
The firm can be reached through:
Shannon R. Wheatman, Ph.D.
The Messina Group
1155 Connecticut Ave. NW, Suite 400
Washington, DC 20036
About Aearo Technologies
Aearo Technologies, LLC -- https://earglobal.com/en -- is a 3M
company that designs, manufactures, and sells personal protection
equipment. The Indianapolis-based company serves customers
worldwide.
To address claims related to the Combat Arms Earplugs Version 2,
Aearo Technologies and its affiliates sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Ind. Lead Case
No. 22-02890) on July 26, 2022. In the petition filed by John R.
Castellano, as authorized signatory, Aearo Technologies listed $1
billion to $10 billion in both assets and liabilities.
The Debtors tapped Kirkland & Ellis and Ice Miller, LLP as
bankruptcy counsels; McDonald Hopkins, LLC as special counsel;
Bates White, LLC as claims valuation consultant; AP Services, LLC
as restructuring advisor; and Kroll, LLC as claims agent and
noticing agent. John R. Castellano, managing director at
AlixPartners LLP, an affiliate of AP Services, serves as the
Debtors' chief restructuring officer.
Judge Jeffrey J. Graham oversees the cases.
The U.S. Trustee for Region 10 appointed two separate official
committees to represent tort claimants in the Debtors' cases. The
tort claimants assert claims related to the use of faulty combat
arms earplugs and respirators manufactured by the companies.
The tort committee related to use of combat arms version 2 earplugs
tapped Otterbourg P.C. and KTBS Law, LLP as bankruptcy counsels;
Rubin & Levin, P.C. as Indiana counsel; Brown Rudnick, LLP and
Caplin & Drysdale, Chartered as special counsels; Houlihan Lokey
Capital, Inc. as investment banker; Province, LLC as financial
advisor; and Stretto, Inc. as information agent.
Meanwhile, the other committee is represented by the law firm of
Rochelle McCullough, LLP.
AGOGIE INC: Seeks Cash Collateral Access
----------------------------------------
Agogie, Inc. asks the U.S. Bankruptcy Court for the District of
Delaware for authority to use cash collateral and provide adequate
protection.
The Debtor requires the use of cash collateral to maintain regular
operating expenses and to remain in business.
The Debtor does not manufacture any of the product it sells. And,
virtually none of the product it sells is actually owned by the
Debtor. Rather, nearly all of the product the Debtor sells is
consigned to the Debtor by a company called Quiby, Inc. d/b/a
Kickfurther.
As of the Petition Date, the Debtor is a party to two consignment
contracts with Kickfurther dated April 21, 2021 and June 24, 2021,
respectively. And, Kickfurther's interest in the product identified
therein is perfected through two UCC Financing Statements filed by
Kickfurther on May 5, 2021 and July 1, 2021, respectively.
In recent years, the Debtor has incurred several hundred thousand
dollars of liability in merchant cash advance transactions, whereby
the Debtor's accounts have been automatically debited many
thousands of dollars a day/week. And, as a consequence thereof, the
Debtor has been unable to secure new inventory or maintain regular
operating expenses.
In part, the Debtor sought bankruptcy relief in order to stay
further automatic debits of its accounts.
The Debtor's assets as of the Petition Date have a total value of
only about $60,000, and are comprised of the following: (i)
accounts with a total value of less than $22,000; (ii) about
$36,000 of uncollectible accounts receivable; (iii) about $25,000
of inventory owned by the Debtor; (iv) about $1,500 of tools,
machinery and equipment; and (v) trademark(s)/patent(s) pending
with nominal value of about $500.
The Debtor's liabilities as of the Petition Date total about $4.5
million.
The Debtor's obligations to the SBA, which originated through an
EIDL loan that the Debtor obtained at the beginning of the COVID-19
pandemic.
As of the Petition Date, the Debtor is indebted to the SBA in the
total amount of approximately $350,000.
It is the Debtor's position that the SBA has a first priority
perfected lien encumbering all of the Debtor's assets as of the
Petition Date, including all cash collateral. Albeit, because the
Debtor's assets as of the Petition Date have a value of only about
$60,000, the SBA is undersecured by about $290,000.
It is also the Debtor's position that KickFurther's UCC filings
perfect Kickfurther's interest in all inventory consigned to the
Debtor, and secures the Debtor's obligations thereto.
As of the Petition Date, the Debtor is indebted to Kickfurther in
the total amount of approximately $92,000 for commissions due to
Kickfurther in connection with certain pre-petition sales of
consigned inventory.
On an interim basis, the Debtor is prepared to provide adequate
protection to the SBA in the form of a replacement lien on
post-petition cash collateral generated by the Debtor in the amount
and to the extent of the cash collateral that the Debtor projects
it will use over the next six weeks as detailed in the Interim
Budget.
Also, on an interim basis, the Debtor is prepared to acknowledge
that Kickfurther has a perfected interest in all consigned
inventory in the Debtor's possession as of the Petition Date.
The Debtor, however, does not intend to offer adequate protection
to any other UCC filer or purported lienholder as the collateral
claimed thereby is ofinsufficient value.
A copy of the motion is available at https://bit.ly/3lPLz53 from
PacerMonitor.com.
About Agogie, Inc.
Agogie, Inc. is a performance sportswear and athleisure apparel
company. Agogie sells pant and legging products with built-in
resistance bands, the design for which is currently patent pending.
Agogie' sales are made both direct to consumer and retail
distributors.
Agogie sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Del. Case No. 23-10215) on February 17, 2023. In
the petition signed by Aaron J. Mottern, chief executive officer,
the Debtor disclosed up to $100,000 in assets and up to $10 million
in liabilities.
Jenny R. Kasen, Esq., at Kasen and Kasen, P.C., represents the
Debtor as legal counsel.
AKUMIN INC: Riadh Zine Has 8.24% Stake as of Dec. 31
----------------------------------------------------
In a Schedule 13G/A filed with the Securities and Exchange
Commission, Riadh Zine disclosed that as of Dec. 31, 2022, he
beneficially owns 7,613,156 shares of common stock of Akumin Inc.,
representing 8.24% of the shares outstanding.
Riadh Zine is a Canadian citizen.
A full-text copy of the regulatory filing is available for free at
https://tinyurl.com/ydn28ktp
About Akumin
Plantation, Fla.-based Akumin Inc. -- http://www.akumin.com--
provides fixed-site outpatient diagnostic imaging services through
a network of approximately 200 owned and/or operated imaging
locations; and outpatient radiology and oncology services and
solutions to approximately 1,000 hospitals and health systems
across 46 states. Its imaging procedures include magnetic
resonance imaging ("MRI"), computerized tomography ("CT"), positron
emission tomography, ultrasound, diagnostic radiology (X-ray),
mammography, and other related procedures. Akumin's cancer care
services include a full suite of radiation therapy and related
offerings.
As of Sept. 30, 2022, the Company had $1.8 billion in total assets,
$1.6 billion in total liabilities, and a total equity of $162
million.
As reported by the TCR on Nov. 30, 2022, Moody's Investors Service
downgraded Akumin Inc.'s corporate family rating to Caa2 from B3.
The downgrade reflects Moody's view that Akumin's capital structure
is becoming unsustainable given the company's weak operating
performance, integration challenges and very high financial
leverage. Moody's feels that the company will reduce its leverage
from the Alliance Healthcare Services, Inc. acquisition at a slower
pace than previously expected. It also incorporates additional
execution challenges the company has had with the integration of
Alliance Healthcare Services, Inc. Given these challenges, and the
significant increase in cash interest expense that will occur in
late 2023, there has been a material increase in the risk that
Akumin will pursue a transaction that Moody's would consider a
distressed exchange, and hence a default.
AKUMIN INC: Stanley G. Dunford Has 6.15% Stake as of Dec. 31
------------------------------------------------------------
In a Schedule 13G/A filed with the Securities and Exchange
Commission, Stanley G. Dunford disclosed that as of Dec. 31, 2022,
he beneficially owns 5,538,841 shares of common stock of Akumin
Inc., representing 6.15% of the shares outstanding.
Dunford is a Canadian citizen and owns Floyd Dunford Limited and
Dunford Marine Holdings LP.
A full-text copy of the regulatory filing is available for free at
https://tinyurl.com/bdhayzch
About Akumin
Plantation, Fla.-based Akumin Inc. -- http://www.akumin.com--
provides fixed-site outpatient diagnostic imaging services through
a network of approximately 200 owned and/or operated imaging
locations; and outpatient radiology and oncology services and
solutions to approximately 1,000 hospitals and health systems
across 46 states. Its imaging procedures include magnetic
resonance imaging ("MRI"), computerized tomography ("CT"), positron
emission tomography, ultrasound, diagnostic radiology (X-ray),
mammography, and other related procedures. Akumin's cancer care
services include a full suite of radiation therapy and related
offerings.
As of Sept. 30, 2022, the Company had $1.8 billion in total assets,
$1.6 billion in total liabilities, and a total equity of $162
million.
As reported by the TCR on Nov. 30, 2022, Moody's Investors Service
downgraded Akumin Inc.'s corporate family rating to Caa2 from B3.
The downgrade reflects Moody's view that Akumin's capital structure
is becoming unsustainable given the company's weak operating
performance, integration challenges and very high financial
leverage. Moody's feels that the company will reduce its leverage
from the Alliance Healthcare Services, Inc. acquisition at a slower
pace than previously expected. It also incorporates additional
execution challenges the company has had with the integration of
Alliance Healthcare Services, Inc. Given these challenges, and the
significant increase in cash interest expense that will occur in
late 2023, there has been a material increase in the risk that
Akumin will pursue a transaction that Moody's would consider a
distressed exchange, and hence a default.
ALMAZ TRANSPORTATION: Exclusivity Period Extended to June 21
------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of New York
extended the time Almaz Transportation, Inc. can keep exclusive
control of its Chapter 11 case, giving the company until June 21 to
file a bankruptcy plan.
Almaz will use the extension to reach an agreement with the NYS
Department of Health Medical Financial Mgmt and obtain court
approval of the agreement before it files its bankruptcy plan.
About Almaz Transportation
Almaz Transportation, Inc. sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 22-42027) on
Aug. 25, 2022. In the petition signed by Yefim Sabler, president,
the Debtor disclosed under $1 million in both assets and
liabilities.
Judge Jil Mazer-Marino oversees the case.
The Debtor tapped the Law Offices of Alla Kachan, PC as its counsel
and Wisdom Professional Services Inc. as accountant.
AMC ENTERTAINMENT: S&P Lowers ICR to 'SD' on Distressed Exchange
----------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on AMC
Entertainment Holdings Inc. to 'SD' (selective default) from 'CC'
and our issue-level rating on its second-lien notes due 2026 to 'D'
from 'CC'.
S&P said, "The downgrade follows AMC's completion of transactions
that we view as distressed and tantamount to a default. The
downgrade follows the company's announcement that it concluded the
exchange of its $100 million principal amount of 10%/12%
cash/payment in kind (PIK) second-lien notes due 2026 for
approximately 91.0 million AMC preferred equity units (APEs). In
our view, this transaction is a distressed exchange and tantamount
to a default because we believe the second-lien noteholder will
receive less than originally promised since they are subordinating
secured debt for equity. In our view, AMC is pursuing this
transaction because its capital structure is unsustainable and has
limited options to reduce its debt burden and improve its cash
flow.
"In addition, since Dec. 19, 2022, AMC has repurchased $85.2
million in aggregate principal amount of its outstanding debt at an
average discount of approximately 49%. The majority of the debt it
repurchased was its 10%/12% cash/PIK toggle second-lien notes due
2026. We do not view these repurchases as significant. However, in
tandem with the debt-for-equity swap, we believe they indicate that
its lenders will receive less than they were originally promised
under the securities.
"We intend to review our ratings on AMC Entertainment, including
our issuer credit and issue-level ratings, over the next week. We
intend to review our ratings on the company over the next week to
incorporate the debt exchanges, recent events, and our
forward-looking opinion of its creditworthiness."
ESG credit indicators: E-2, S-4, G-3
AMENTUM HOLDINGS: S&P Alters Outlook to Negative, Affirms 'B' ICR
-----------------------------------------------------------------
S&P Global Ratings revised its outlook on Amentum Holdings LLC to
negative from stable and affirmed the 'B' issuer credit rating and
'B' senior secured issue-level ratings. S&P does not rate the
second lien debt.
The negative outlook reflects Amentum's adjusted debt to EBITDA of
7x and the potential risk that this may rise above 7x and remain
there over the next 12 months.
Amentum's leverage may remain in the low-7x area in fiscal 2023. As
part of Operation Allies Welcome--where the Department of Homeland
Security (DHS) coordinated to house allies displaced during the
U.S. withdrawal from Afghanistan during August 2021--Amentum was
awarded the Liberty Village contract requiring the buildout of
temporary housing for Afghan refugees as they resettled in the U.S.
In August 2022 Amentum completed the Liberty Village contract, well
in advance of management's expectations. The early completion
created a $750 million revenue shortfall in 2022, the same year
Amentum saw other contract wind-downs, resulting in an additional
revenue headwind of $155 million. The combined EBITDA impact of
these contracts in fiscal 2022 was nearly $100 million. As such,
between the contract wind-downs, PAE Inc. acquisition, and related
transaction expenses, the company ended fiscal 2022 with S&P Global
Ratings-adjusted debt to EBITDA of 7x.
S&P said, "Pro forma for the full year contributions of the
acquisitions of DynCorp (in fiscal 2021) and PAE (in fiscal 2022)
and then adjusted for joint venture (JV) accounting changes, we
estimate year-over-year revenue declined nearly 2% in fiscal 2022.
The company acquired PAE for approximately $1.8 billion funded
mostly with incremental debt, and PAE contributed about 20% of the
company's reported revenue in fiscal 2022. Adjusting for the
accounting change related to certain contracts (primarily Savannah
River remediation) and the company's Afghanistan-related contract
exposure (which had shorter duration than contracts in the rest of
the company's backlog, and which we did not expect to be renewed
beyond original contract terms), we forecast revenue growth of
about 2%-3%, in line with the industry average in fiscal 2023,
which is slightly conservative compared to management's
expectations."
The company has recently won a Ukraine tele-maintenance contract
and an indefinite delivery/indefinite quantity contract (IDIQ) from
the Air Force to support operations and maintenance activity for
international customers. S&P expects the company will realize the
benefit of synergies following the PAE acquisition in the cost
structure as well, and achieve adjusted debt to EBITDA in the
low-7x area in fiscal 2023, with the potential to reach 7x should
Amentum perform in line with management's expectations.
S&P said, "We forecast reported free operating cash flow (FOCF)
will be in the modestly negative to breakeven area in fiscal 2023,
improving significantly in fiscal 2024 from lower working capital
uses. The company accrued PAE integration-related expenses in
fiscal 2022 (some of which we expect to be paid out in fiscal 2023)
and Coronavirus Aid, Relief, and Economic Security Act (CARES)
deferred tax payments. Though Amentum generated reported FOCF
around $105 million in fiscal 2022, this was in part due to the
timing of working capital spend which moved into fiscal 2023. We
expect working capital headwinds in Q1 fiscal 2023 related to these
items and continued spending tied to enterprise resource planning
software implementation. Management is also working on a payment
collections optimization initiative which could benefit working
capital toward the end of fiscal 2023. As such, we expect FOCF
between negative $20 million and breakeven in fiscal 2023, and
improvement thereafter as this working capital spend winds-down.
"Amentum could reduce its adjusted debt to EBITDA should it use
cash to repay debt. Amentum had around $134 million of cash as of
its December 2022 quarter, and we do not net cash against debt due
to the sponsor ownership of the company. We are expecting a
significant cash burn in fiscal 2023 related to the aforementioned
working capital spend, which could limit Amentum's ability to
improve leverage via debt repayment. Furthermore, we expect the
company will continue to explore opportunities that improve margins
and complement its service offerings in intelligence and analysis,
training, and data analytics. Should Amentum perform more in line
with management's expectations, along with no acquisition targets
arising in 2023, this could offer an avenue for debt repayment in
excess of our forecast, which only includes the mandatory annual
amortization amount."
The negative outlook reflects Amentum's S&P Global Ratings-adjusted
debt to EBITDA of 7.0x and the potential risk that this may rise
above 7.0x and remain at this level over the next 12 months.
S&P asid, "We could lower the rating on Amentum if we believe debt
to EBITDA will remain above 7.0x and is unlikely to improve over
the next six to 12 months. This could occur if the company does not
win new business sufficient to offset recent contract losses, or if
contract delays or protests delay EBITDA improvement.
"We could revise the outlook to stable if debt to EBITDA returns
below 7.0x and we believe the company will sustain leverage at that
level. This could occur if the company engages in debt repayment
beyond required amortization, or if the company is able to
consistently win new business."
ESG credit indicators: E-2, S-2, G-3
S&P said, "Governance is a moderately negative consideration in our
credit rating analysis of Amentum, as is the case for most rated
entities owned by private-equity sponsors. We believe the company's
highly leveraged financial risk profile points to corporate
decision-making that prioritizes the interests of the controlling
owners. This also reflects the generally finite holding periods and
a focus on maximizing shareholder returns."
APEX SIERRA: Seeks Approval to Hire GREA as Real Estate Broker
--------------------------------------------------------------
Apex Sierra Hermosa TX, LP seeks approval from the U.S. Bankruptcy
Court for the Northern District of Texas to hire GREA to market for
sale its apartment complex in Fort Worth.
The real estate broker will get 2 percent of the gross sales price
of any consummated sales over $11 million.
Mark Allen, executive managing director at GREA, 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:
Mark Allen
GREA
5728 LBJ Freeway, Suite 310
Dallas, TX 75240
Phone: 972-865-6328
Email: mark.allen@grea.com
About Apex Sierra Hermosa TX
Fort Worth, Texas-based Apex Sierra Hermosa TX, LP sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
N.D. Tex. Case No. 22-42638) on Nov. 1, 2022, with up to $50
million in assets and up to $10 million in liabilities. Aron
Puretz, representative of the Debtor's general partner, signed the
petition.
Judge Mark Mullin oversees the case.
Eric A. Liepins, Esq., is the Debtor's legal counsel.
ASTRO ONE: $525M Bank Debt Trades at 36% Discount
-------------------------------------------------
Participations in a syndicated loan under which Astro One
Acquisition Corp is a borrower were trading in the secondary market
around 64.2 cents-on-the-dollar during the week ended Friday,
February 17, 2023, according to Bloomberg's Evaluated Pricing
service data.
The $525 million facility is a Term loan that is scheduled to
mature on October 25, 2028. The amount is fully drawn and
outstanding.
Founded in 2021 and based in the US, Astro One Acquisition
Corporation is a merged entity of Petmate and Brody. Both companies
engage in the production and distribution of pet products such as
cat waste management products, toys, kennels, shelters, chews, and
feeding and watering products.
ATLANTIC ACCEPTANCE: Case Summary & 10 Unsecured Creditors
----------------------------------------------------------
Debtor: Atlantic Acceptance Corp.
312 Clematis Street
West Palm Beach, FL 33401
Chapter 11 Petition Date: February 20, 2023
Court: United States Bankruptcy Court
Southern District of Florida
Case No.: 23-11339
Judge: Hon. Mindy A. Mora
Debtor's Counsel: Joe M. Grant, Esq.
LORIUM LAW
197 S. Federal Highway
Suite 200
Boca Raton, FL 33432
Tel: 561-361-1000
Email: jgrant@loriumlaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Ryan Allen Rochefort as managing
member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 10 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/BUYUVPQ/Atlantic_Acceptance_Corp__flsbke-23-11339__0001.0.pdf?mcid=tGE4TAMA
AUGSBURG UNIVERSITY: Moody's Alters Outlook on Ba1 Rating to Stable
-------------------------------------------------------------------
Moody's Investors Service has revised the outlook for Augsburg
University, MN to stable from negative and has affirmed the Ba1
issuer and revenue bond ratings. The university had approximately
$60 million of debt outstanding at the end of fiscal 2022.
RATINGS RATIONALE
The revision of outlook to stable from negative is driven by
prospects for continued student market and operating margin
improvements. In fall 2022, Augsburg enrolled its second largest
incoming class in the past decade, bucking state and regional
trends. Augsburg's noted strength and investments in recruiting
demographic groups that are projected to grow positions it well to
weather the near-term demographic and competitive pressures in the
State of Minnesota (Aaa stable), its primary recruitment area.
Growing enrollment will boost net tuition revenue in fiscal 2023,
which, coupled with expense management efforts, should yield
modestly improved margins and produce another year of debt service
coverage above 1x.
Augsburg's Ba1 issuer rating primarily reflects its limited
liquidity, thin operating performance, and exposure to debt
structure risks. Credit strengths include good philanthropic
support and improving financial policy and strategy. The
university's already thin liquidity is projected to decline by
around $6 million because of capital spending and unfavorable
working capital shifts. Adding to liquidity risks is a debt
structure that includes private placement debt with financial
covenants that could trigger an acceleration of debt if breached.
The university has not consistently complied with said covenants in
the past, including in fiscal 2022, requiring bank waivers to not
trigger an acceleration event. And, despite projected operating
performance improvement in fiscal 2023, management anticipates that
waivers will be required for fiscal 2023. Moody's rating and
outlook incorporate expectations that the university will receive
waivers for the 2023 results. Other credit considerations include
relatively high exposure to private investments and a high reliance
on student charges to fund operations.
The Ba1 revenue bond rating reflects the issuer rating and
unsecured promise to pay.
RATING OUTLOOK
The stable outlook reflects Moody's expectations that Augsburg will
continue to effectively manage enrollment and achieve measured
gains in operating performance. The stable outlook is also
predicated on the university generating close to 1x debt service
coverage and managing its counterparty relationships to support
covenant violation waivers should debt service coverage remain
below the 1.25x covenant requirement. It also reflects expectations
of no further use of liquid reserves beyond the around $6 million
projected.
FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS
Continued improvement in operating performance with full covenant
compliance over multiple years
Significant and sustained increase in unrestricted liquidity and
overall wealth to provide a stronger buffer to operations and debt
Consistent growth in net tuition revenue over multiple years
FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS
Higher than projected draw down of liquidity, due to either
internal usage or external acceleration event
Reversal of improved operating performance
Declines in undergraduate enrollment
LEGAL SECURITY
Outstanding public bonds and private notes are a general unsecured
obligation of the university. The university's rated debt is
secured by a debt service reserve fund. Public debt has multiple
covenants, which it is currently in compliance with, and does not
have a cross default provision.
PROFILE
Augsburg University, founded as a Lutheran seminary in 1869, is in
Minneapolis, Minnesota. The university's diverse programs serve
traditional students and adult learners. Augsburg enrolled 2,884
students in fall 2022, mostly from Minnesota, with revenue of $81
million in fiscal 2022.
METHODOLOGY
The principal methodology used in these ratings was Higher
Education Methodology published in August 2021.
AVAYA HOLDINGS: Moody's Lowers CFR to 'Ca' Amid Bankruptcy Filing
-----------------------------------------------------------------
Moody's Investors Service downgraded Avaya Holdings Corp.'s (Avaya)
probability of default rating to D-PD from Caa2-PD following the
announcement the company filed a petition for relief under Chapter
11 of the US Bankruptcy Code on February 14, 2023. Avaya's
corporate family rating was downgraded to Ca from Caa2.
Concurrently, Moody's downgraded Avaya Inc.'s (a debt issuing
subsidiary of Avaya) senior secured debt instrument ratings to Ca
from Caa2. Avaya's speculative grade liquidity rating (SGL)
remains SGL-4. The outlook remains negative.
Subsequent to the actions, Moody's will withdraw the ratings due to
Avaya's bankruptcy filing.
Downgrades:
Issuer: Avaya Holdings Corp.
Corporate Family Rating, Downgraded to Ca from Caa2
Probability of Default Rating, Downgraded to D-PD from Caa2-PD
Issuer: Avaya Inc.
Backed Senior Secured 1st Lien Bank Credit Facility, Downgraded to
Ca (LGD3) from Caa2 (LGD3)
Backed Senior Secured Regular Bond/Debenture, Downgraded to Ca
(LGD3) from Caa2 (LGD3)
Outlook Actions:
Issuer: Avaya Holdings Corp.
Outlook, Remains Negative
Issuer: Avaya Inc.
Outlook, Remains Negative
RATINGS RATIONALE
The downgrade of the PDR reflects Avaya's bankruptcy filing on
February 14, 2023. The Ca CFR and Ca senior secured ratings reflect
Moody's view of estimated recovery. Under the prepackaged plan of
reorganization, Avaya's funded debt obligations would decline to
approximately $800 million. The company has also entered into a
debtor-in-possession financing including a $500 million term loan,
and a $128 million ABL facility, which will roll into exit
facilities upon emergence from Chapter 11. Additionally, certain
investors have committed to provide $150 million of additional
new-money financing to Avaya through a fully backstopped debt
rights offering at exit.
Headquartered in Morristown, New Jersey, Avaya Holdings Corp. is a
provider of unified communications & collaboration and contact
center software and services. The company reported revenue of
approximately $2.9 billion for the last twelve months ended March
31, 2022.
Governance is a key driver of the ratings. Avaya's ESG Credit
Impact Score is very highly negative, reflecting its heightened
exposure to governance risk related to its financial strategy &
risk management, management credibility & track record, and
compliance & reporting. Exposure to social risks is moderately high
and could negatively pressure its ratings if they are not properly
mitigated in a timely and consistent manner. Avaya's exposure to
environmental risks are low and not expected to influence its
credit ratings over time.
The principal methodology used in these ratings was Diversified
Technology published in February 2022.
BASIC WATER: Exclusivity Period Extended to May 9
-------------------------------------------------
The U.S. Bankruptcy Court for the District of Nevada extended the
time Basic Water Company and Basic Water Company SPE 1, LLC can
keep exclusive control of their Chapter 11 cases, giving the
companies until May 9 to file a bankruptcy plan and until July 7 to
solicit votes on that plan.
The companies need time to facilitate an "orderly, efficient and
cost-effective management" of their bankruptcy cases in concert
with the resolution by the court of several claims that have yet to
be resolved, according to their attorney, Samuel Schwartz, Esq., at
Schwartz Law, PLLC.
About Basic Water Company
Basic Water Company, a water utility company in Nevada, and
affiliate Basic Water Company SPE 1, LLC sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Nev. Lead Case
No. 22-13252) on Sept. 10, 2022. In their petitions, Basic Water
Company listed $10 million to $50 million in assets and $1 million
to $10 million in liabilities while SPE 1 listed as much as $50
million in both assets and liabilities. Stephanne A. Zimmerman,
president, signed the petitions.
Judge Mike K. Nakagawa oversees the cases.
The Debtors tapped Samuel A. Schwartz, Esq. at Schwartz Law, PLLC
as legal counsel, and Force 10 Partners, LLC as financial advisor.
Stretto, Inc. is the claims, noticing and solicitation agent.
BEATO AUTO SALES: Bid to Use Cash Collateral Denied
---------------------------------------------------
The U.S. Bankruptcy Court for the District of New Hampshire denied
the motion to use cash collateral filed by Beato Auto Sales, Inc.
for the reasons stated on the record.
A copy of the order is available at https://bit.ly/3Z6fNPA from
PacerMonitor.com.
As previously reported by the Troubled Company Reporter, the Debtor
requires the use of cash collateral to operate the Debtor's
business through confirmation of a subchapter V chapter 11 plan of
reorganization to:
(i) make payroll to the Debtor's employees essential to its
continued operations;
(ii) pay insurance premiums as necessary to ensure continuation
of the necessary insurance coverage,
(iii) pay vendors, suppliers and utilities for ongoing supplies
and services;
(iv) pay other ordinary and necessary expenses to prevent an
immediate cessation of the business; and
(v) pay the Debtor's professionals and the fees of the United
States Trustee.
The Debtor has five creditors with secured claims in the Debtor's
used car inventory. The remaining secured creditors are the U.S.
Small Business Administration and two so-called merchant cash
advance lenders who have liens in the Debtor's future receipts.
They have not assented to the relief requested therein but will not
suffer an impairment of their collateral position as a result of
the Debtor's operations.
The creditors holding a secured interest in the cash collateral are
Automotive Finance Corporation, XL Funding, Lendbuzz, Shamrock
Finance, NextGear, Samson Funding, Newtek Small Business Finance
Inc., and Small Business Administration.
The Debtor's secured debts total $2,068,197.
The Debtor asserted that since it intends to sell its used car
inventory in the normal course of its business operations during
the Use Period and correspondingly reduce its secured debt, but not
reduce either its cash or other assets, none of its secured
creditors are harmed during the Use Period.
About Beato Auto Sales, Inc.
Beato Auto Sales, Inc. is engaged in the retail sale of used cars.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.N.H. Case No. 23-10064) on February 13,
2023. In the petition signed by Rafael Beato, president, the Debtor
disclosed up to $50,000 in assets and up to $10 million in
liabilities.
Judge Bruce A. Harwood oversees the case.
Peter N. Tamposi, Esq., at the Tamposi Law Group, P.C., is the
Debtor's legal counsel.
BED BATH & BEYOND: To Close Canadian Stores in Bankruptcy
---------------------------------------------------------
Soma Biswas and Alexander Gladstone of The Wall Street Journal
reports that Bed Bath & Beyond to close Canadian Stores in
bankruptcy.
Bed Bath & Beyond Inc.'s Canadian division will shut down its
stores under court protection after the company recently received
an unusual lifeline to save its U.S. operations from bankruptcy.
The troubled home-goods retailer on Friday, February 10, 2023,
filed its Canadian division for protection under the Companies'
Creditors Arrangement Act, Canada's rough equivalent of chapter 11
bankruptcy. Bed Bath & Beyond has "reluctantly concluded" that
even with the lifeline of its recent equity raise, there isn't
enough capital available both to restructure its U.S. business and
bring the Canadian business to profitability, the company said in
filings with an Ontario court.
About Bed Bath & Beyond
Bed Bath & Beyond Inc., together with its subsidiaries, is an
omnichannel retailer selling a wide assortment of merchandise in
the Home, Baby, Beauty & Wellness markets and operate under the
names Bed Bath & Beyond, buybuy BABY, and Harmon, Harmon Face
Values. The Company also operates Decorist, an online interior
design platform that provides personalized home design services.
The Company reported a net loss of $559.62 million for the fiscal
year ended Feb. 26, 2022, a net loss of $150.77 million for the
year ended Feb. 27, 2021, and a net loss of $613.82 million for the
year ended Feb. 29, 2020. As of Nov. 26, 2022, the Company had
$4.40 billion in total assets, $5.20 billion in total liabilities,
and a total shareholders' deficit of $798.64 million.
* * *
As reported by the TCR on Jan. 11, 2023, S&P Global Ratings raised
its issuer credit rating on Union, N.J.-based specialty home
retailer Bed Bath & Beyond Inc. (BBBY) to 'CC' from 'SD' (selective
default). S&P said, "The 'CC' rating and negative outlook on BBBY
reflects our view that while not actively in default, the company
is highly vulnerable and a distressed transaction or broader
restructuring is a virtual certainty based on its deteriorating
liquidity position, challenging operating conditions, and the
looming maturities of its outstanding 2024 notes."
As reported by the TCR on Nov. 28, 2022, Moody's Investors Service
retained Bed Bath's corporate family rating at Ca and the outlook
remains stable. According to Moody's, Bed Bath & Beyond's Ca
corporate family rating reflects the very high likelihood of
further defaults over the next twelve months.
BELTWAY PLAZA: Case Summary & Six Unsecured Creditors
-----------------------------------------------------
Debtor: Beltway Plaza Investment, LLC
4710 Auth Place
Suitland, MD 20746
Chapter 11 Petition Date: February 20, 2023
Court: United States Bankruptcy Court
District of Maryland
Case No.: 23-11094
Debtor's Counsel: Craig M. Palik, Esq.
MCNAMEE HOSEA, P.A.
6411 Ivy Lane, Ste. 200
Greenbelt, MD 20770
Tel: (301) 441-2420
Fax: (301) 982-9450
Email: cpalik@mhlawyers.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Ho Chong Suh as authorized member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's six unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/MCGFKWI/Beltway_Plaza_Investment_LLC__mdbke-23-11094__0001.0.pdf?mcid=tGE4TAMA
BERTUCCI'S RESTAURANTS: Wins Cash Collateral Access Thru March 7
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida,
Orlando Division, authorized Bertucci's Restaurants, LLC to use
cash collateral on an interim basis in accordance with the budget
through the date of the final hearing set for March 7, 2023 at 10
a.m.
The Debtor is permitted to use cash collateral to pay:
a. amounts expressly authorized by the Court, including
payments to the United States Trustee for quarterly fees; and
b. the current and necessary expenses set forth in the budget,
plus an amount not to exceed 10% for the expenses.
During the interim period, PHL Holdings, LLC and Rewards Network
will each have a perfected post-petition lien against cash
collateral to the same extent and with the same validity and
priority as its respective prepetition lien, without the need to
file or execute any documents as may otherwise be required under
applicable non-bankruptcy law. The replacement lien(s) granted will
secure all obligations owing from the Debtor to PHL and Rewards
Network, as the case may be.
Pursuant to the Stipulation between Debtor and C.H. Robinson
Worldwide, Inc, the Debtor has agreed to pay $50,000 per week
against the pre-petition claims of Robinson related to claims under
the PACA Trust.
A copy of the Court's order and the Debtor's budget is available at
https://bit.ly/3xFDfaI from PacerMonitor.com.
The budget provides for total operating cash inflows, on a weekly
basis as follows:
$219 for the week ending February 26, 2023;
$34 for the week ending March 5, 2023;
$536 for the week ending March 12, 2023;
$78 for the week ending March 19, 2023; and
$371 for the week ending March 26, 2023.
About Bertucci's Restaurants, LLC
Bertucci's Restaurants, LLC is a Florida limited liability company
that was formed in May 2018. The Company owns and operates
approximately 47 Italian-themed restaurants under the name
Bertucci's Brick Oven Pizza & Pasta.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 22-04313) on December 5,
2022. In the petition signed by Jeffrey C. Sirolly, secretary, the
Debtor disclosed up to $50,000 in assets and up to $100 million in
liabilities.
Judge Grace E. Robson oversees the case.
R. Scott Schuker, Esq., at Shuker and Dorris, P.A., is the Debtor's
legal counsel.
BLACKBERRY LTD: Fifthdelta Ltd. Has 9.98% Stake as of Dec. 31
-------------------------------------------------------------
In a Schedule 13G filed with the Securities and Exchange
Commission, Fifthdelta Ltd. disclosed that as of Dec. 31, 2022, it
beneficially owns 57,923,581 shares of common stock of BlackBerry
Ltd., representing 9.98% of the shares outstanding.
A full-text copy of the regulatory filing is available for free at
https://tinyurl.com/24wjbr96
About BlackBerry Ltd.
Headquartered in Waterloo, Ontario, BlackBerry Limited provides
intelligent security software and services to enterprises and
governments based in Canada.
Egan-Jones Ratings Company on December 30, 2022, maintained its
'CCC' foreign currency and local currency senior unsecured ratings
on debt issued by BlackBerry Limited. EJR also maintained its C
rating on commercial paper issued by the Company.
BOLTA US: Court OKs $7MM DIP Loan from SMP and Volkswagen
---------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Alabama,
Western Division, authorized Bolta US Ltd. to use cash collateral
and obtain postpetition financing, on a final basis.
SMP Automotive Systems Alabama Inc. and Volkswagen Group of America
Chattanooga Operations, LLC are the Debtor's largest customers and
are willing to extend secured postpetition credit to Debtor under
section 364 of the Bankruptcy Code, subject to the terms of the
Interim Order and the Final Order.
The Lenders will make postpetition advances to the Debtor, provided
that the principal amount of the requested postpetition advance and
all other postpetition advances outstanding as of such date, will
not exceed $7 million. Each Lender will be responsible for making
its respective Pro Rata Share of each requested advance. "Pro Rata
Share" initially means 69.47% for SMP and 30.53% for VW.
The Debtor's ability to request advances under the Final Order and
the Postpetition Notes will terminate on the earlier of March 6,
2023 or upon an Event of Default, unless the Termination Date is
extended by written stipulation of Lenders and the Debtor.
The credit and financial accommodations to be extended under the
DIP Loan Documents are being extended by Lenders in good faith; the
Debtor, Lenders, and ICICI Bank UK, PLC have negotiated the terms
and conditions contained in the Interim Order and the Final Order
in an arms' length, open and honest fashion; and Lenders are
entitled to the protection of section 364(e) of the Bankruptcy
Code.
In order for the Debtor to continue to operate its business, and
preserve its goodwill and going concern value, it is necessary for
the Debtor to immediately obtain secured postpetition financing on
a final basis to enable it to pay normal operating expenses.
The Debtor has advised the Court that the adequate protection
provided to ICICI Bank, Porter Capital Corporation and Deutsche
Leasing USA, Inc. for any diminution in the value of their
Prepetition Collateral, from and after the Petition Date pursuant
to the provisions of the Interim Order and the Final Order is
consistent with and authorized by the Bankruptcy Code and is
offered by the Debtor to protect the Prepetition Lenders' interests
in the Prepetition Collateral. The foregoing finding will not
prejudice ICICI Bank from challenging the adequacy of such adequate
protection or seeking other or additional adequate protection at
any time subsequent to the entry of the Final Order.
The events of default include:
a. The Debtor defaults in performance of any of its
obligations under the Interim Order or under the DIP Loan
Documents;
b. Entry of an order dismissing the Case, appointing a trustee
in the Case, converting the Case to a case under chapter 7 of the
Bankruptcy Code, or transferring the venue of the Case to another
district;
c. The Debtor repudiates or breaches its obligations, or
refuses to perform its obligations under the various nominating
agreements, purchase agreements, release requests, purchase orders
or other agreements with respect to the manufacturing of component
parts or tooling for the Lenders, including any Lender's general
terms and conditions of purchase, the consequence of which is a
substantial likelihood that a Lender's production will be
interrupted, and as long as such repudiation or breach was not
caused by a Lender's breach of the Purchase Orders or its failure
to comply with the Order, including its obligations to fund the
Postpetition Indebtedness and accelerate payments for postpetition
shipments under the Purchase Orders; and
d. The Debtor experiences a material adverse change, the
consequence of which is a substantial likelihood that any Lender's
production will be interrupted.
As of the Petition Date, the Debtor was obligated to SMP, VW, and
Rehau for unsecured loans made by the customers to the Debtor
commencing in January 2022 and continuing until December 2022, as
evidenced by various Draw-To Notes. The Debtor made no payments to
SMP, VW or Rehau under the Draw-To Notes prior to the Petition
Date. As of the Petition Date, the Debtor owed the following
amounts on account of the Prepetition Obligations:
-- to SMP, the principal amount of $6.251 million plus accrued
interest and expenses;
-- to VW, the principal amount of $2.255 million plus accrued
interest and expenses; and
-- to Rehau, the principal amount of $2.376 million plus
accrued interest and expenses.
The Lenders' security interest in the DIP Collateral is junior only
to the prepetition security interests of ICICI Bank, Deutsche
Leasing and Porter in their respective Prepetition Collateral, to
the extent that such security interests are valid, binding and
unavoidable, the Adequate Protection Liens and the Carve-Out.
As adequate protection under sections 361 and 363 of the Bankruptcy
Code for any diminution in value of the Prepetition Collateral of
the Prepetition Lenders:
a. ICICI Bank and Porter will be each granted a continuing and
replacement security interest and lien in all inventory of the
Debtor that is acquired after the Petition Date, to the same extent
and respective priority that the liens of ICICI Bank and Porter
attached to inventory as of the Petition Date;
b. Porter will maintain its lien on the Debtor's prepetition
accounts receivable, the proceeds of which will at the election of
the Debtor with the consent of Lenders either be (i) paid by the
Debtor to Porter (or if received in Porter's lockbox, applied by
Porter) as and when collected and applied to the Debtor's
outstanding pre-petition obligations to Porter until paid in full
or (ii) segregated until the Debtor (or Porter in its lockbox) is
holding proceeds sufficient to pay Porter's prepetition claim in
full, at which time the excess funds will be available for use by
the Debtor in accordance with the Budget and will be turned over by
Porter to the Debtor (to the extent such excess funds are received
by Porter); and
c. The Debtor will continue to make the regularly scheduled
monthly payments to Deutsche Leasing in the amount of $54,996 per
month as set forth in the Budget.
The Debtor will make the monthly adequate protection payments of
$54,996 until the closing of any Section 363 sale in which Deutsche
Leasing's secured collateral is sold to a third party or until
Deutsche Leasing has lifted the bankruptcy stay as to its
collateral, provided that the foregoing does not constitute a
consent by Lenders to use of cash collateral after the Termination
Date and does not require Lenders to make any advances after the
Termination Date.
A copy of the order is available at https://bit.ly/3KkUo0Z from
PacerMonitor.com.
About Bolta US Ltd.
Bolta US Ltd. is an auto parts manufacturer in Tuscaloosa, Alabama.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ala. Case No. 23-70042) on January 13,
2023. In the petition signed by Jeffrey Truitt, chief restructuring
officer, the Debtor disclosed up to $50 million in assets and up to
$100 million in liabilities.
Judge Jennifer H. Henderson oversees the case.
Stephen Gross, Esq., at McDonald Hopkins, LLC, is the Debtor's
legal counsel.
The Debtor also tapped Rosen Harwood, P.C. as local bankruptcy
co-counsel and Winter McFarland, LLC as special counsel.
BON WORTH: May Use $210,233 of Cash Collateral Thru March 12
------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of New York
authorized Bon Worth Holdings, Inc. to use cash collateral in a
maximum amount not to exceed $210,233 during the period from
February 13 through March 12, 2023.
The Debtor requires the immediate use of cash collateral to, among
other things, permit the orderly continuation of the operation of
its business, minimize the disruption of its business operations,
and preserve and maximize the value of the assets of the Debtor's
bankruptcy estate.
Crossroads Funding II, LLC has an interest in the cash collateral.
As of the Petition Date, the Debtor was a party to the Loan and
Security Agreement by and between the Debtor and the Lender, dated
November 12, 2019, in the original maximum advance amount of $2
million as amended by the First Amendment to Loan and Security
Agreement dated October 1, 2022, and all other agreements,
documents and instruments executed or delivered with, to, or in
favor of the Lender.
As of the Petition Date, the Debtor was indebted to the Lender in
an aggregate outstanding principal amount of not less than $1.757
million.
Saturn asserts an interest in Lender Cash Collateral on account of
the security interest in inventory of the Debtor and proceeds
thereof granted to Saturn by the Debtor in a certain Amended
Standstill and Common-Interest Agreement, dated March 4, 2021, and
for which a UCC-1 financing statement was duly filed with the
Delaware Department of State, as collateral for an obligation which
Saturn asserts is owing by the Debtor in the amount of not less
than $1.769 million, plus all interest accrued and accruing
thereon, together with all costs, fees, expenses and other charges
accrued, accruing or chargeable with respect thereto.
These events constitute an "Event of Default":
a. The failure by the Debtor to perform, in any respect, any
of the terms, provisions, conditions, covenants, or obligations
under the Interim Order;
b. The entry of any Court order granting relief from or
modifying the automatic stay of Bankruptcy Code section 362(a);
c. Dismissal of the Chapter 11 case or conversion of the
Chapter 11 case to a Chapter 7 case, or appointment of a Chapter 11
trustee, or examiner with enlarged powers, or other responsible
person; and/or
d. A default by the Debtors in reporting financial or
operational information as and when required under the Emergency
Order or Existing Loan Agreements that is not cured within two
business days after written notice to the Debtor and its counsel.
As adequate protection, the Lender and Saturn are granted valid,
perfected and enforceable security interests to the same extent
that they existed as of the Petition Date.
The Lender and Saturn are also granted as and to the extent
provided by section 507(b) of the Bankruptcy Code an allowed
superpriority administrative. The Adequate Protection Superpriority
Claim will have priority over all administrative expense claims and
unsecured claims against the Debtor and its Estate now existing or
hereafter arising, of any kind or nature whatsoever.
A copy of the order is available at https://bit.ly/3YJyc5f from
PacerMonitor.com.
About Bon Worth Holdings, Inc.
Bon Worth Holdings, Inc. operates a retail clothing business and
owns 28 brick and mortar stores and one online store and maintains
an office in Brooklyn, New York.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 22-43213) on December 29,
2022. In the petition signed by Dan Young, its president, the
Debtor disclosed up to $50,000 in assets and up to $20 million in
liabilities.
Judge Jil Mazer-Marino oversees the case.
Lawrence F. Morrison, Esq., at Morrison Tenenbaum PLLC, is the
Debtor's legal counsel.
BOULDER CANYON: Seeks to Hire Skinner Law Firm as Legal Counsel
---------------------------------------------------------------
Boulder Canyon, LLC seeks approval from the U.S. Bankruptcy Court
for the District of South Carolina to hire Skinner Law Firm, LLC as
its counsel.
The firm's services include:
a. providing legal advice with respect to its powers and
duties as Debtor-in-Possession in the continued operation of its
business and management of its property; and
b. preparing necessary applications, answers, orders, reports,
pleadings , a Disclosure Statement and Plan.
Randy Skinner, Esq., the attorney primarily responsible for
representing the Debtor, will be paid $425 per hour for his
services. Meanwhile, paralegals will be paid $150 per hour.
The firm received a retainer in the amount of $8,262.
Skinner Law Firm is "disinterested" as defined in section 101(14)
of the Bankruptcy Code, and does not hold or represent any interest
adverse to the Debtor's estate, according to court filings.
The firm can be reached through:
Randy A. Skinner
Skinner Law Firm, LLC
300 North Main Street, Suite 201
Greenville, SC 29601
Phone: (864) 232-2007
Fax: (864) 232-8496
Email: main@skinnerlawfirm.com
About Boulder Canyon
Boulder Canyon, LLC sought protection for relief under Chapter 11
of the Bankruptcy Code (Bankr. D.S.C. Case No. 23-00258) on Jan.
27, 2023, listing $50,001 to $100,000 in assets and $500,001 to $1
million in liabilities. Randy A. Skinner, Esq. at Skinner Law Firm,
LLC represents the Debtor as counsel.
BOY SCOUTS: Insurers Ask Court to Reverse Chapter 11 Plan
---------------------------------------------------------
Fox News reports that an attorney for some insurance companies that
could be liable for child sexual abuse claims against the Boy
Scouts of America urged a judge to reverse a bankruptcy plan for
the organization, arguing collusion with claimants' lawyers to
pressure insurers to enter into settlements.
Ted Boutros, an attorney representing non-settling insurers, said
the reorganization plan was not proposed in good faith and
improperly strips non-settling insurers of their rights to
challenge the claims.
"We're just asking for fairness," Boutros told U.S. District Court
Judge Richard Andrews, who began hearing two days of arguments in
appeals by certain insurers and sexual abuse claimants.
In September 2022, U.S. Bankruptcy Judge Laurie Selber Silverstein
approved a $2.46 billion reorganization plan that would allow the
Irving, Texas-based Boy Scouts of America to continue operating
while compensating tens of thousands of men who say they were
sexually abused as children while involved in Scouting.
More than 80,000 men have filed claims saying they were abused as
children by troop leaders around the country. Plan opponents say
the staggering number of claims, when combined with other factors,
suggests that the bankruptcy process was manipulated.
"We know huge swaths of them are not legitimate claims," Boutros
said, referring to a statement made by one of the BSA’s own
experts. Boutros also noted that a plaintiffs' attorney
acknowledged that some 58,000 claims probably could not be pursued
in civil lawsuits because of the passage of time.
When it sought bankruptcy protection in February 2020, the BSA had
been named in about 275 lawsuits and told insurers it was aware of
another 1,400 claims. The huge number of claims filed in the
bankruptcy was the result of a nationwide marketing effort by
personal injury lawyers working with for-profit claims aggregators
to drum up clients, according to plan opponents.
The BSA's largest insurers negotiated settlements for a fraction of
the billions of dollars in potential liability exposure they faced.
Other insurers, many of which provided excess coverage above the
liability limits of the underlying primary policies, refused to
settle. They argue that the procedures for distributing funds from
a proposed compensation trust would violate their contractual
rights to contest claims, set a dangerous precedent for mass tort
litigation, and result in grossly inflated payments.
Glenn Kurtz, an attorney for the Boy Scouts, told Andrews that
opponents have to prove that Silverstein committed "clear error" in
approving the plan but that they are not challenging any of the
factual findings she made.
"Frankly, the insurers, neither in their papers or today, have
identified a single finding by the court that could support an
ultimate conclusion of bad faith," he said.
Under the plan, which the BSA describes as a "carefully calibrated
compromise," the BSA itself would contribute less than 10% of the
proposed settlement fund. The local BSA councils, which run
day-to-day operations for troops, offered to contribute at least
$515 million in cash and property, conditioned on certain
protections for local troop sponsoring organizations, including
religious entities, civic associations and community groups.
The bulk of the compensation fund would come from the BSA's two
largest insurers, Century Indemnity and The Hartford, which reached
settlements calling for them to contribute $800 million and $787
million, respectively. Other insurers agreed to contribute about
$69 million.
Insurers opposing the plan argue that the BSA is contractually
obligated to assist them in investigating, defending and settling
claims, as it did before the bankruptcy. They say that the BSA,
desperate to escape bankruptcy, colluded with claimants' lawyers to
inflate both the volume and value of claims in order to pressure
insurers for large settlements, then transferred its insurance
rights to the settlement trust. The insurers argue that if the BSA
transfers its rights under insurance policies to the settlement
trustee, it must also transfer its obligations under those
policies.
Attorneys for the Boy Scouts and plan supporters say the BSA's
obligations under the insurance policies are being transferred to
the trustee — subject to the bankruptcy plan an "applicable law."
Non-settling insurers contend that language creates too much
uncertainty regarding their rights and how much discretion is being
given to the retired bankruptcy judge who would oversee the
settlement trust.
Andrews will hear arguments Friday by attorneys for abuse survivors
who say the plan contains improper liability releases that prohibit
them from being able to sue non-debtor third parties, including
local BSA councils, BSA insurers and troop sponsoring
organizations.
About Boy Scouts of America
The Boy Scouts of America -- https://www.scouting.org/ -- is a
federally chartered non-profit corporation under title 36 of the
United States Code. Founded in 1910 and chartered by an act of
Congress in 1916, the BSA's mission is to train youth in
responsible citizenship, character development, and self-reliance
through participation in a wide range of outdoor activities,
educational programs, and, at older age levels, career-oriented
programs in partnership with community organizations. Its national
headquarters is located in Irving, Texas.
The Boy Scouts of America and affiliate Delaware BSA, LLC, sought
Chapter 11 protection (Bankr. D. Del. Lead Case No. 20-10343) on
Feb. 18, 2020, to deal with sexual abuse claims.
Boy Scouts of America was estimated to have $1 billion to $10
billion in assets and at least $500 million in liabilities as of
the bankruptcy filing.
The Debtors have tapped Sidley Austin LLP as their bankruptcy
counsel, Morris, Nichols, Arsht & Tunnell LLP as Delaware counsel,
and Alvarez & Marsal North America, LLC, as financial advisor. Omni
Agent Solutions is the claims agent.
The U.S. Trustee for Region 3 appointed a tort claimants' committee
and an unsecured creditors' committee on March 5, 2020. The tort
claimants' committee is represented by Pachulski Stang Ziehl &
Jones, LLP, while the unsecured creditors' committee is represented
by Kramer Levin Naftalis & Frankel, LLP.
BROSE CONSTRUCTION: Seeks to Hire BransonLaw PLLC as Counsel
------------------------------------------------------------
Brose Construction, Inc. seeks approval from the U.S. Bankruptcy
Court for the Middle District of Florida to hire BransonLaw, PLLC
as its counsel.
The firm will render these services:
a. prosecute and defend any causes of action on behalf of the
Debtor; prepare, on behalf of the Debtor, all necessary
applications, motions, reports and other legal papers;
b. assist in the formulation of a plan of reorganization;
c. provide all other services of a legal nature.
The hourly rates of BransonLaw's attorneys and paralegals range
from $495 to $200.
Prior to the petition date, the Debtor paid the firm an advance fee
of $215.50 for post-petition services and expenses, and the filing
fee of $1,738.
Jeffrey Ainsworth, Esq., an attorney at BransonLaw, disclosed in a
court filing that the firm is a "disinterested person" as that term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Jeffrey S. Ainsworth, Esq.
BransonLaw, PLLC
1501 E. Concord St.
Orlando, FL 32803
Telephone: (407) 894-6834
Facsimile: (407) 894-8559
Email: jeff@bransonlaw.com
About Brose Construction
Brose Construction, Inc. sought protection for relief under Chapter
11 of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 22-04528) on
Dec. 23, 2022, listing under $1 million in both assets and
liabilities. Jeffrey S. Ainsworth, Esq. at BransonLaw, PLLC
represents the Debtor as counsel.
BSPV-PLANO LLC: Plan Solicitation Period Extended to Feb. 28
------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Texas
extended to Feb. 28 the period during which BSPV-Plano, LLC has the
exclusive right to solicit votes in favor of its proposed plan to
exit Chapter 11 protection.
Meanwhile, the court ordered that the motion by The Huntington
National Bank to terminate the period during which BSPV-Plano can
keep exclusive control of its bankruptcy is withdrawn without
prejudice.
BSPV-Plano filed a Chapter 11 plan of reorganization on Dec. 31
last year, which proposes to pay unsecured claims, without
interest, in full through quarterly payments over four years. The
plan provides an option to each unsecured creditor whereby the
company will pay the claim in full through a one-time payment of
33% of the allowed amount of the claim.
About BSPV-Plano LLC
BSPV-Plano, LLC, a company in Plano, Texas, sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. E.D. Texas Case No.
22-40276) on March 1, 2022, listing up to $100 million in both
assets and liabilities. Richard Shaw, manager, signed the
petition.
Judge Brenda T. Rhoades oversees the case.
Munsch Hardt Kopf and Harr, PC, Grant Thornton, LLP and American
Global of Texas, LLC serve as the Debtor's legal counsel, financial
advisor and insurance consultant, respectively.
The Debtor filed its proposed Chapter 11 plan of reorganization on
Dec. 31, 2022.
BURKE BRANDS: Court OKs Interim Cash Collateral Access
------------------------------------------------------
The U.S. Bankruptcy Court for the U.S. Bankruptcy Court for the
Southern District of Florida, Miami Division, authorized Burke
Brands, LLC, dba Don Pablo Coffee, to use the cash collateral of
U.S. Century Bank on an interim basis.
The Debtor is permitted to use cash collateral, as defined in 11
U.S.C. section 363(a), including the cash or noncash proceeds of
assets that were not cash collateral on the Petition Date up to the
amounts shown in the Budget, with a 10% variance.
Additionally, on or before March 3, the Debtor is directed to
provide the Lender a (i) comparison between its projected and
actual budget, (ii) projected budget beyond March 12, (iii) list of
receivables that have been redirected to its Debtor-in-Possession
account located at Wells Fargo Bank, and (iii) list of receivables
expected to be re-directed from its prepetition bank account to its
DIP Account.
As adequate protection for the use of cash collateral, the Lender
is granted valid, perfected replacement liens upon, and security
interests in, the Pre-petition Collateral, to the same extent,
validity and priority as Lender's existing prepetition liens on any
and all assets including but not limited to all cash generated
post-petition from the Lender's Pre-Petition Collateral.
In the event the Court ultimately determines Velocity Capital Group
or another Merchant Cash Advance company had a valid ownership or
security interest in the Debtor's receivables on December 29, 2022,
VCG or such other MCA will be granted a valid, perfected
replacement lien upon, and security interest in the Receivables, to
the same extent, validity and priority as any ownership interest
and/or liens of VCG or such other MCA determined by the Court to
have existed prepetition on the Receivables.
These events constitute an "Event of Default":
a. If a trustee is appointed in the Chapter 11 Case;
b. If the Debtor breaches any term or condition of the Order
or any of the Lender's loan documents, other than defaults existing
as of the Petition Date;
c. If the Case is converted to a case under Chapter 7 of the
Bankruptcy Code;
d. If the Case is dismissed; or
e. If any violation or breach of any provision of the Order
occurs.
A continued hearing on the matter is set for March 9 at 11:30 a.m.
by video conference.
A copy of the Court's order and the Debtor's budget is available at
https://bit.ly/41kFDl8 from PacerMonitor.com.
The Debtor projects total disbursements, on a weekly basis, as
follows:
$278,702 for the week ending February 18, 2023;
$254,276 for the week ending February 25, 2023;
$207,729 for the week ending March 4, 2023; and
$197,599 for the week ending March 11, 2023.
About Burke Brands LLC
Burke Brands LLC -- https://www.burkebrands.com/ -- is a privately
owned coffee company.
Burke Brands LLC filed a petition for relief under Subchapter V of
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No.
22-19932) on Dec. 30, 2022. In the petition filed by Darron Burke,
as manager, the Debtor reported assets and liabilities between $1
million and $10 million.
Judge Robert A. Mark oversees the case.
Linda Marie Leali has been appointed as Subchapter V trustee.
The Debtor is represented by Aaron A Wernick, Esq., at Wernick Law,
PLLC.
CANO HEALTH: Capital World No Longer Owns Common Shares
-------------------------------------------------------
In a Schedule 13G filed with the Securities and Exchange
Commission, Capital World Investors disclosed that as of Dec. 30,
2022, ceased to be the beneficial owner of shares of common stock
of Cano Health Inc.
A full-text copy of the regulatory filing is available for free at
https://tinyurl.com/ysuss8bv
About Cano Health
Cano Health, Inc. (NYSE: CANO) -- htt;://www.canohealth.com -- is a
primary care-centric, technology-powered healthcare delivery and
population health management platform. The Company is one of the
largest independent primary care physician groups in the United
States. It utilizes its technology-powered, value-based care
delivery platform to provide care for its members.
As of Sept. 30, 2022, the Company had $2.19 billion in total
assets, $1.41 billion in total liabilities, and $783.03 million in
total stockholders' equity.
In October 2022, Moody's Investors Service downgraded Cano's
ratings, including the Corporate Family Rating to Caa1 from B3, and
the Probability of Default Rating to Caa1-PD from B3-PD.
Concurrently, Moody's downgraded the ratings of Cano's First Lien
Senior Secured Credit Facilities to Caa1 from B2 and the ratings of
the Senior Unsecured Notes to Caa3 from Caa2. The rating outlook is
stable.
The ratings downgrade reflects Moody's view that Cano will continue
to have high leverage and is weakly positioned to absorb future
unexpected operating setbacks in light of the company's weak
liquidity and current trend in the company's cash burn and poor
performance.
In November 2022, S&P Global Ratings lowered its issuer credit
rating on Cano to 'B-' from 'B'. The outlook is negative. S&P also
lowered its issue-level ratings on the company's revolver and term
loan to 'B-' from 'B'. It lowered its issue-level rating on the
company's senior unsecured notes to 'CCC' from 'CCC+'.
S&P said, "The negative outlook primarily reflects our forecast for
very weak credit measures through 2023, including near breakeven
free operating cash flow (FOCF) generation, with little room for
the company to underperform against our assumptions before we could
consider its capital structure unsustainable."
CANO HEALTH: Suvretta Capital No Longer Owns Common Shares
----------------------------------------------------------
In a Schedule 13G filed with the Securities and Exchange
Commission, Suvretta Capital Management, LLC disclosed that as of
Dec. 31, 2022, ceased to be the beneficial owner of shares of
common stock of Cano Health Inc.
A full-text copy of the regulatory filing is available for free at
https://tinyurl.com/yckjb5a3
About Cano Health
Cano Health, Inc. (NYSE: CANO) -- htt;://www.canohealth.com -- is a
primary care-centric, technology-powered healthcare delivery and
population health management platform. The Company is one of the
largest independent primary care physician groups in the United
States. It utilizes its technology-powered, value-based care
delivery platform to provide care for its members.
As of Sept. 30, 2022, the Company had $2.19 billion in total
assets, $1.41 billion in total liabilities, and $783.03 million in
total stockholders' equity.
In October 2022, Moody's Investors Service downgraded Cano's
ratings, including the Corporate Family Rating to Caa1 from B3, and
the Probability of Default Rating to Caa1-PD from B3-PD.
Concurrently, Moody's downgraded the ratings of Cano's First Lien
Senior Secured Credit Facilities to Caa1 from B2 and the ratings of
the Senior Unsecured Notes to Caa3 from Caa2. The rating outlook is
stable.
The ratings downgrade reflects Moody's view that Cano will continue
to have high leverage and is weakly positioned to absorb future
unexpected operating setbacks in light of the company's weak
liquidity and current trend in the company's cash burn and poor
performance.
In November 2022, S&P Global Ratings lowered its issuer credit
rating on Cano to 'B-' from 'B'. The outlook is negative. S&P also
lowered its issue-level ratings on the company's revolver and term
loan to 'B-' from 'B'. It lowered its issue-level rating on the
company's senior unsecured notes to 'CCC' from 'CCC+'.
S&P said, "The negative outlook primarily reflects our forecast for
very weak credit measures through 2023, including near breakeven
free operating cash flow (FOCF) generation, with little room for
the company to underperform against our assumptions before we could
consider its capital structure unsustainable."
CARESTREAM HEALTH: $540.8M Bank Debt Trades at 32% Discount
-----------------------------------------------------------
Participations in a syndicated loan under which Carestream Health
Inc is a borrower were trading in the secondary market around 68.1
cents-on-the-dollar during the week ended Friday, February 17,
2023, according to Bloomberg's Evaluated Pricing service data.
The $540.8 million facility is a Term loan that is scheduled to
mature on September 30, 2027. The amount is fully drawn and
outstanding.
Carestream Health, Inc., headquartered in Rochester, New York, is a
supplier of imaging and IT systems to the medical and dental
communities and to other markets.
CARVER BANCORP: Posts $1.1 Million Net Loss in Third Quarter
------------------------------------------------------------
Carver Bancorp, Inc. has filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $1.10 million on $7.20 million of total interest income for the
three months ended Dec. 31, 2022, compared to a net income of
$696,000 on $5.66 million of total interest income for the three
months ended Dec. 31, 2021.
For the nine months ended Dec. 31, 2022, the Company reported a net
loss of $2.90 million on $20.30 million of total interest income
compared to a net loss of $976,000 on $16.71 million of total
interest income for the same period in 2021.
As of Dec. 31, 2022, the Company had $712.24 million in total
assets, $667.11 million in total liabilities, and $45.13 million in
total equity.
Management believes Carver Federal's short-term assets have
sufficient liquidity to cover loan demand, potential fluctuations
in deposit accounts and to meet other anticipated cash
requirements, including interest payments on its subordinated debt
securities. Additionally, Carver Federal has other sources of
liquidity including the ability to borrow from the Federal Home
Loan Bank of New York utilizing unpledged mortgage-backed
securities and certain mortgage loans, the sale of
available-for-sale securities and the sale of certain mortgage
loans. N et borrowings increased $15.1 million, or 95.0%, to $31.0
million at Dec. 31, 2022, compared to $15.9 million at March 31,
2022. The Bank had a $15 million overnight advance outstanding
from the FHLB-NY at Dec. 31, 2022. At Dec. 31, 2022, based on
available collateral held at the FHLB-NY, Carver Federal had the
ability to borrow from the FHLB-NY an additional $25.4 million on a
secured basis, utilizing mortgage-related loans and securities as
collateral. The Bank has the ability to pledge additional loans as
collateral in order to borrow up to 30% of its total assets.
During the nine months ended Dec. 31, 2022, the Bank repaid its
remaining $3 thousand outstanding advance under its PPP liquidity
facility at the Federal Reserve. The Company also had $13.4
million in subordinated debt securities and $2.5 million in low
interest loans outstanding as of Dec. 31, 2022.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1016178/000101617823000006/carv-20221231.htm
About Carver Bancorp
Headquartered in New York, Carver Bancorp, Inc., is the holding
company for Carver Federal Savings Bank, a federally chartered
savings bank. The Company conducts business as a unitary savings
and loan holding company, and the principal business of the Company
consists of the operation of its wholly- owned subsidiary, Carver
Federal. Carver Federal was founded in 1948 to serve
African-American communities whose residents, businesses and
institutions had limited access to mainstream financial services.
The Bank remains headquartered in Harlem, and predominantly all of
its seven branches and four stand-alone 24/7 ATM centers are
located in low- to moderate-income neighborhoods.
Carver Bancorp reported a net loss of $847,000 for the year ended
March 31, 2022, a net loss of $3.90 million for the year ended
March 31, 2021, a net loss of $5.42 million for the year ended
March 31, 2020, and a net loss of $5.94 million for the year ended
March 31, 2019. As of Sept. 30, 2022, the Company had $755.72
million in total assets, $709.48 million in total liabilities, and
$46.24 million in total equity.
CASTLE US: $295M Bank Debt Trades at 27% Discount
-------------------------------------------------
Participations in a syndicated loan under which Castle US Holding
Corp is a borrower were trading in the secondary market around 72.7
cents-on-the-dollar during the week ended Friday, February 17,
2023, according to Bloomberg's Evaluated Pricing service data.
The $295 million facility is a Term loan that is scheduled to
mature on January 29, 2027. The amount is fully drawn and
outstanding.
Castle US Holding Corporation provides database tools and software
to public relations and communications professionals.
CELSIUS NETWORK: Hires A.M. Saccullo Legal as Special Counsel
-------------------------------------------------------------
Celsius Network, LLC and its affiliates seek approval from the U.S.
Bankruptcy Court for the Southern District of New York to hire A.M.
Saccullo Legal, LLC as their special counsel.
The firm will represent the Debtors in connection with In re FTX
Trading Ltd., et al., Case No. 22-11068 (JTD) (Bank. D. Del. 2022),
pending in the United States Bankruptcy Court for the District of
Delaware.
The firm's services include:
(a) monitoring the FTX Trading Ltd. docket for filings and
coordinating with the Debtors' advisors on pending matters that
need responses;
(b) attending hearings in the United States Bankruptcy Court
for the District of Delaware;
(c) providing legal advice regarding Delaware local rules,
practices, and procedures;
(d) drafting, reviewing and commenting on drafts of documents
to ensure compliance with local rules, practices, and procedures;
(e) filing documents as requested by the Debtors' advisors and
coordinating for service of documents;
(f) performing such other legal services as may be required or
requested or as may otherwise be deemed in the interests of the
Debtors and duties as set forth in the Bankruptcy Code, Bankruptcy
Rules, or other applicable law; and
(g) providing additional support to the Debtors' advisors as
requested.
The firm will be paid at these hourly rates:
2022 2023
Anthony M. Sacullo $550 $605
Mark T. Hurford $515 $565
Thomas Kovach $515 $565
Mary Augustine $485 $525
In accordance with Appendix B-Guidelines for Reviewing Applications
for Compensation and Reimbursement of Expenses Filed under 11
U.S.C. Sec. 330 for Attorneys in Larger Chapter 11 Cases, A.M.
Saccullo Legal disclosed that:
-- it 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;
-- it has not represented the Debtors in the 12 months
prepetition; and
-- A.M. Saccullo expects to develop a budget and staffing
claim with the Debtors for its engagement.
As disclosed in court filings, A.M. Saccullo Legal is a
"disinterested person" within the meaning of Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Anthony M. Saccullo, Esq.
A.M. Saccullo Legal, LLC
27 Crimson King Drive
Bear, DE 19701
Telephone: (302) 836-8877
Facsimile: (302) 836-8787
Email: ams@saccullolegal.com
About Celsius Network
Celsius Network LLC -- http://www.celsius.network/-- is a
financial services company that generates revenue through
cryptocurrency trading, lending, and borrowing, as well as by
engaging in proprietary trading.
Celsius helps over a million customers worldwide to find the path
towards financial independence through a compounding yield service
and instant low-cost loans accessible via a web and mobile app.
Celsius has a blockchain-based fee-free platform where membership
provides access to curated financial services that are not
available through traditional financial institutions.
The Celsius Wallet claims to be one of the only online crypto
wallets designed to allow members to use coins as collateral to get
a loan in dollars, and in the future, to lend their crypto to earn
interest on deposited coins (when they're lent out).
Crypto lenders such as Celsius boomed during the COVID-19 pandemic,
drawing depositors with high interest rates and easy access to
loans rarely offered by traditional banks. But the lenders'
business model came under scrutiny after a sharp sell-off in the
crypto market spurred by the collapse of major tokens terraUSD and
luna in May 2022.
New Jersey-based Celsius froze withdrawals in June 2022, citing
"extreme" market conditions, cutting off access to savings for
individual investors and sending tremors through the crypto
market.
The list of major crypto firms that have filed for bankruptcy
protection in 2022 now includes Celsius Network, Three Arrows
Capital and Voyager Digital.
Celsius Network, LLC and its subsidiaries sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case
No.22-10964) on July 14, 2022. In the petition filed by CEO Alex
Mashinsky, the Debtors estimated assets and liabilities between $1
billion and $10 billion.
The Debtors tapped Kirkland & Ellis, LLP and Kirkland & Ellis
International, LLP as bankruptcy counsels; Fischer (FBC & Co.) as
special counsel; Centerview Partners, LLC as investment banker; and
Alvarez & Marsal North America, LLC as financial advisor. Stretto
is the claims agent and administrative advisor.
On July 27, 2022, the U.S. Trustee appointed an official committee
of unsecured creditors. The committee tapped White & Case, LLP as
its bankruptcy counsel; Elementus Inc. as its blockchain forensics
advisor; M3 Advisory Partners, LP as its financial advisor; and
Perella Weinberg Partners, LP as its investment banker.
Shoba Pillay, Esq., is the examiner appointed in the Debtors'
Chapter 11 cases. Jenner & Block, LLP and Huron Consulting
Services, LLC serve as the examiner's legal counsel and financial
advisor, respectively.
CFN ENTERPRISES: Vince Kandis Resigns as President of Unit
----------------------------------------------------------
CFN Enterprises Inc. disclosed in its Form 8-K Report filed with
the Securities and Exchange Commission that on February 13, 2023,
Vince Kandis, the President of CNP Operating, LLC, a wholly owned
subsidiary of CFN Enterprises Inc., resigned from his position.
About CFN Enterprises Inc.
CFN Enterprises Inc. owns and operates CNP Operating, a
cannabidiol, or CBD, manufacturer vertically integrated with a 360
degree approach to the processing of high quality CBD products
designed for growers, pharmaceutical, wellness providers, and
retailers' needs, and a cannabis industry focused sponsored content
and marketing business. The Company's ongoing operations currently
consist primarily of CNP Operating and the CFN Business and it will
continue to pursue strategic transactions and opportunities. The
Company is currently in the process of launching an e-commerce
network focused on the sale of general wellness CBD products.
As of Sept. 30, 2022, the Company had $5.87 million in total
assets, $9.32 million in total liabilities, and a total
stockholders' deficit of $3.45 million.
New York, NY-based RBSM LLP, the Company's auditor since 2012,
issued a "going concern" qualification in its report dated May 13,
2022, citing that the Company has suffered recurring losses from
operations and will require additional capital to continue as a
going concern. This raises substantial doubt about the Company's
ability to continue as a going concern.
In its September 2022 quarterly report, CFN stated, "Our plan to
continue as a going concern includes raising additional capital in
the form of debt or equity, growing the CNP Operating business and
the business acquired under the Emerging Growth Agreement and
managing and reducing operating and overhead costs. We cannot
provide any assurance that unforeseen circumstances that could
occur at any time within the next twelve months or thereafter will
not increase the need for us to raise additional capital on an
immediate basis. These matters, among others, raise substantial
doubt about our ability to continue as a going concern."
CHINOS INTERMEDIATE 2: Moody's Alters Outlook on 'B2' CFR to Neg.
-----------------------------------------------------------------
Moody's Investors Service changed Chinos Intermediate 2 LLC's (dba
JCrew) outlook to negative from stable. At the same time, Moody's
affirmed JCrew's ratings, including the B2 corporate family rating,
B2-PD probability of default and the B2 senior secured credit
facility rating.
The outlook change to negative reflects Moody's view that the
company's credit metrics will continue to weaken through fiscal
year-end January 2023 and fiscal January 2024 due to the
expectation of a heavily promotional retail environment, uncertain
customer demand, elevated inventory levels and margin compression.
Through the quarter-ended Oct 29, 2022, J. Crew has been contending
with higher freight, input and labor costs, increased marketing
expense and an industry-wide promotional environment which has
weighed on margins and cashflow even though topline has remained
resilient. While revenue growth has been strong (up approximately
15% on a same-store basis), gross margins have declined
approximately 500 bps and EBITA margins are down approximately 400
bps for YTD 3Q'23. Moody's adjusted EBITA is down approximately 28%
over the same time period. These factors have led Moody's adjusted
debt/EBITDA to increase to 3.2x from 2.4x at fiscal year-ended 2022
and EBITA/interest to decline from 2.6x to 2.1x over the same time
period. Moody's expects these difficult operating trends to
persist into mid-year fiscal January 2024.
Affirmations:
Issuer: Chinos Intermediate 2 LLC
Corporate Family Rating, Affirmed B2
Probability of Default Rating, Affirmed B2-PD
Senior Secured Term Loan, Affirmed B2 (LGD4)
Outlook Actions:
Issuer: Chinos Intermediate 2 LLC
Outlook, Changed To Negative From Stable
RATINGS RATIONALE
J.Crew's B2 CFR is constrained by the company's relatively small
scale, high fashion risk and the highly competitive nature of the
apparel retail sector. In addition, the ratings are constrained by
governance considerations, including ownership by its former
lenders, which increases the risk of aggressive financial strategy
actions. The difficult turnaround of the J.Crew business over the
past several years coupled with the more recent industry-wide
promotional environment and elevated inventory levels are also key
credit negatives.
At the same time, the rating is currently supported by J.Crew's
adequate credit metrics with Moody's-adjusted debt/EBITDA of 3.2x
and EBITA/interest expense of 2.1x, based on LTM October 29, 2022.
While Moody's anticipate a weakening of credit metrics for fiscal
year-ended January 29, 2023 through the first half of fiscal 2024,
Moody's expect the company to have good liquidity over the next
12-18 months, including adequate cash balances and access to a $400
million asset-based revolving credit facility (currently undrawn
outside of $67 million in letters of credit). The company also
benefits from a lack of near-term maturities and the company's
ownership of the Madewell business, which demonstrated sustained
growth before the pandemic.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings could be upgraded if the company demonstrates a transparent
and strong commitment to conservative financial policies. An
upgrade would also require a sustained period of solid operating
performance in both the Madewell and J.Crew businesses and
turnaround on recent operating trends. Quantitatively, the ratings
could be upgraded if debt/EBITDA is maintained below 3 times and
EBITA/interest expense remains above 3 times.
The ratings could be downgraded if operating performance remains
weak or liquidity deteriorates. Quantitatively, the ratings could
be downgraded with expectations that debt/EBITDA will be sustained
above 4 times or EBITA/interest expense below 2 times.
Chinos Intermediate 2 LLC (J.Crew) is a retailer of women's, men's
and children's apparel, shoes and accessories under the J.Crew and
Madewell brands. For the last twelve months ended October 29, 2022,
the company generated revenue of approximately $2.55 billion
through its stores, websites and retail partners. The company is
majority owned by Anchorage Capital Group, L.L.C. following the
2020 bankruptcy emergence.
The principal methodology used in these ratings was Retail
published in November 2021.
CITY LIVING KC: Seeks to Hire Numbers Don't Lie as Accountant
-------------------------------------------------------------
City Living KC, LLC seeks approval from the U.S. Bankruptcy Court
for the Western District of Missouri to employ Numbers Don't Lie,
Inc., a Kansas City-based accounting firm, to prepare its tax
returns.
The Debtor has agreed to pay an annual fee of $3,000 for tax return
preparation and general accounting questions.
Numbers Don't Lie and its members are disinterested parties within
the meaning of Section 101(14) of the Bankruptcy Code, according to
court filings.
The firm can be reached through:
Cassie Moore
Numbers Don't Lie, Inc.
7748 Troost Ave
Kansas City, MO 64131
Phone: 816-886-9031
Fax: 816-886-5345
About City Living KC
City Living KC, LLC, a real estate rental agency in Kansas City,
Mo., sought protection under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. W.D. Mo. Case No. 22-41170) on Sept. 20, 2022, with up to
$10 million in assets and up to $1 million in liabilities. Quashena
Wallace, owner, signed the petition.
Judge Brian T. Fenimore oversees the case.
The Debtor tapped Colin Gotham, Esq., at Evans & Mullinix, P.A. as
legal counsel and Numbers Don't Lie, Inc. as accountant.
COIN & HAMMER: Seeks to Hire Dearfield Law Firm as Counsel
----------------------------------------------------------
Coin & Hammer, LLC seeks approval from the U.S. Bankruptcy Court
for the Southern District of Ohio to hire Dearfield Law Firm, LLC.
The Debtor requires legal counsel to:
a) assist in the administration of the Debtor's Chapter 11
proceeding;
b) advise the Debtor with respect to its powers and duties in
the continued management and operation of its business and
property;
c) represent the Debtor before the bankruptcy court and give
advice on pending litigation, hearings, motions, and decisions of
the court;
d) review legal papers filed by third parties;
e) attend meetings conducted pursuant to Dection 341(a) of the
Bankruptcy Code and represent the Debtor at all examinations;
f) communicate with creditors and other parties in interest;
g) assist the Debtor in preparing legal papers;
h) confer with other professionals retained by the Debtor and
other parties in interest;
i) negotiate and prepare the Debtor's Chapter 11 plan and all
related documents, and take any necessary actions to obtain
confirmation of the plan; and
j) perform all other necessary legal services.
The firm will be paid at these rates:
George T. Dearfield $300 per hour
Attorneys $200 - $300 per hour
Paralegals $135 per hour
As disclosed in court filings, Dearfield Law is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
George T. Dearfield, Esq.
Dearfield Law Firm, LLC
2555 S Dixie Drive
Dayton, OH 45409
Phone: (937) 294-7213
Email: dlf@dearfieldbankruptcylaw.com
About Coin & Hammer
Coin & Hammer, LLC sought protection for relief under Chapter 11 of
the Bankruptcy Code (Bankr. S.D. Ohio Case No. 23-30160) on Feb. 1,
2023, with $100,001 to $500,000 in assets and $500,001 to $1
million in liabilities. Judge Guy R. Humphrey oversees the case.
George T. Dearfield, Esq., at Dearfield Law Firm, LLC represents
the Debtor as counsel.
CONVERGEONE HOLDINGS: $1.11B Bank Debt Trades at 35% Discount
-------------------------------------------------------------
Participations in a syndicated loan under which ConvergeOne
Holdings Inc is a borrower were trading in the secondary market
around 64.9 cents-on-the-dollar during the week ended Friday,
February 17, 2023, according to Bloomberg's Evaluated Pricing
service data.
The $1.11 billion facility is a Term loan that is scheduled to
mature on January 4, 2026. About $1.09 billion of the loan is
withdrawn and outstanding.
ConvergeOne Holdings, Inc. operates as a holding company. The
Company, through its subsidiaries, provides managed cloud, cyber
security, enterprises networking, data center, application and
software development, security infrastructure, and hosted
collaboration solutions.
COOPER-STANDARD: Says Net Loss Narrowed to $215MM in 2022
---------------------------------------------------------
Cooper-Standard Holdings Inc. released results for the fourth
quarter and full year 2022.
Fourth Quarter Summary:
* Sales of $649.3 million, an increase of $48.0 million
compared to fourth quarter 2021;
* Net loss of $88.1 million or $(5.12) per fully diluted
share, improved by $14.1 million compared to fourth quarter 2021;
* Adjusted net loss of $31.9 million, or $(1.85) per fully
diluted share, improved by $18.4 million compared to fourth quarter
2021;
* Adjusted EBITDA of $27.6 million increased by $25.6 million
as compared to fourth quarter 2021; and
* Year-end cash balance of $187 million; continuing strong
total liquidity of $342 million
Full Year Summary:
* Sales of $2.53 billion, an increase of $195.2 million
compared to 2021;
* Net loss of $215.4 million or $(12.53) per fully diluted
share, improved by $107.5 million compared to 2021. Net loss was
$322.8 million in 2021 and $267.6 million in 2020;
* Adjusted net loss of $171.5 million, or $(9.98) per fully
diluted share, improved by $50.8 million compared to 2021;
* Adjusted EBITDA of $37.9 million increased by $45.9 million
as compared to 2021;
* Net new business awards on electric vehicles of $126 million
in the fourth quarter and $198 million for the full year 2022;
Total net new business awards of $122 million in the fourth quarter
and $246 million year for the full year 2022
Cooper-Standard Holdings Inc. also filed with the Securities and
Exchange Commission its Annual Report on Form 10-K for the fiscal
year ended December 31, 2022. As of Dec. 31, 2022, the Company had
$1.96 billion in total assets, $1.86 billion in total liabilities,
and $101.19 million in total equity. As of Dec. 31, 2022, the
Company had $186.8 million in cash and cash equivalents.
The Company estimates that its available cash resources will be
sufficient to fund its operations through February 2024.
"We continued to make progress in the fourth quarter and improved
our results throughout 2022," said Jeffrey Edwards, chairman and
CEO, Cooper Standard, in a press statement. "Our performance in
terms of product quality, new program launches, on-time delivery
and safety have never been better, despite the challenging macro
environment in our industry. As a result, our customers have
remained supportive and have trusted us with significant business
awards on new platforms, which bodes well for our outlook in 2023
and beyond."
A full-text copy of the Form 10-K is available for free at
https://tinyurl.com/5ewr5yp2
About Cooper-Standard Holdings
Cooper-Standard Holdings Inc. (NYSE: CPS), through its subsidiary,
Cooper-Standard Automotive Inc., designs, manufactures, and sells
sealing, fuel and brake delivery, fluid transfer, and
anti-vibration systems worldwide. It operates in four segments:
North America, Europe, Asia Pacific, and South America. The Company
was founded in 1960 and is headquartered in Novi, Michigan.
In February 2023, S&P Global Ratings raised its issuer credit
rating on Cooper-Standard Holdings to 'CCC+' from 'SD' (selective
default). At the same time, the firm assigned a 'CCC+' issue-level
rating and '4' recovery rating (30%-50%; rounded estimate: 45%) to
the new $580 million first-lien senior secured notes due in 2027
and 'CCC-' rating and '6' recovery rating (0%-10%; rounded
estimate: 0%) to the new $357 million third-lien senior secured
notes due in 2027. The firm raised the rating on the company's
remaining senior unsecured notes to 'CCC-' from 'D' with a '6'
recovery rating (0%-10%; rounded estimate: 0%). Cooper-Standard
Automotive Inc. is the issuer of the first-lien senior secured
notes and the third-lien senior secured notes.
S&P said, "The negative outlook reflects the risk that we could
downgrade Cooper-Standard if margin recovery is weaker than we
expect because of ongoing cost pressures and lower volumes, such
that we think the company could face near-term liquidity
pressure."
Cooper-Standard completed its restructuring, including repayment of
its near-term maturities with longer-maturity first-lien and
third-lien notes. It also converted some of its cash interest to
payment-in-kind (PIK) interest. Although gross debt is about the
same, the company improved its liquidity position.
COTIVITI INTERMEDIATE: Fitch Affirms B LongTerm IDR, Outlook Stable
-------------------------------------------------------------------
Ratings has affirmed the Long-Term Issuer Default Ratings (IDRs) of
Cotiviti Intermediate Holding Corp. (f/k/a Verscend Intermediate
Holding Corp.) and Verscend Holding Corp. at 'B'. Fitch has also
affirmed the 'BB-'/'RR2' issue rating of Verscend Holding Corp.'s
senior first lien secured term loan B and the 'CCC+'/'RR6' issue
rating of Verscend Holding Corp.'s senior unsecured notes. The
Rating Outlook is Stable.
KEY RATING DRIVERS
Recent Performance: Pro forma revenue growth for the nine months
ended Sept. 30, 2022 was 10%, with the September quarter
representing 7% pro forma adjusted revenue growth. Growth rates,
while remaining strong, have been moderately below expectations for
sustained low- to mid-teen levels set at the time of Fitch's
initial rating in February 2021.
Demand growth for the company's payment accuracy offerings has been
partially limited by provider inflationary pressures and continued
elevated levels of COVID-related volumes. The company also achieved
a 53% Fitch-calculated adjusted EBITDA margin for the YTD period,
approximately 50 bps above its initial projections as management's
robust cost reduction and synergy execution has more than offset
ongoing inflationary pressures.
Fitch expects growth to accelerate in FY23 due to a likely decline
in COVID-related volumes, provider profitability relief as
re-contracting with commercial payors leads to improved
reimbursement rates, continued growth in Medicare Advantage
enrolment, and a possible end to the public health emergency that
will release covered lives from Medicaid. Fitch has also increased
its optimized EBITDA margin forecast by 100 bps due to the
company's profitability performance and opportunities for
additional cost containment. Fitch believes the company's
performance largely confirms its initial views into the strength of
the model.
Improving Financial Structure: Since the time of the transaction,
leverage has declined in line with initial forecasts with gross
leverage by Fitch's measure expected to reach 6.8x at Dec. 31,
2022. Further, assuming 10% to 11% CAGR 2022-2024 revenue growth,
and 60 bps of margin expansion over the same period, reflecting
partial fulfilment of synergy targets as well as additional cost
containment opportunities, Fitch continues to estimate leverage
will decline to 5.5x by FY24.
Fitch generally views data analytics businesses characterized by
high margins, which are circa 50% for the combined Cotiviti and HMS
businesses, and strong cash flow generating power as able to
sustain high leverage. Fitch does not anticipate Cotiviti will make
voluntary debt repayment, although the company will generate
significant FCF of which it could direct a portion towards
pre-payments, a priority versus M&A beyond the HMS integration
period, as well as capital distributions. Further, there is a
likelihood Cotiviti later cash pays the PIK and/or refinances it
with straight debt.
Secular Tailwinds: The PI market, which was estimated at $6.5
billion in 2019, is expected to grow 7% annually through 2024. The
COB market estimated at $1.6 billion is expected to grow 5% CAGR
over the same period and the PHM market, estimated at $1.4 billion
is expected to grow 13%. Growing unsustainable health care
spending, increasing enrollment and expansion of value-based care
delivery models are driving these markets.
The Centers for Medicare and Medicaid Services (CMS) projects U.S.
health care spending overall to grow at 5.4% annually from
2019-2028. Medicare, which comprises about 40% of HMS's PI
business, is expected to grow 7.6% as a result of having the
highest projected enrollment growth.
Market Position and Customer Concentration: Cotiviti serves 180
payor customers with an average eight-year customer tenure (11
years for its top 25 customers). The company has 141 million
longitudinal patient records and processes in excess of 900 billion
claims annually. In 2021, Cotiviti had three customers representing
10% or more of revenue and a concentration of 10% or more of
customers was 38%.
Fitch estimates Cotiviti has approximately a 18%-20% share of the
PI market, excluding Medicaid and the approximately 5% of
Cotiviti's retail sector PI revenue. HMS has 350 health plan
customers, including 22 of the top 25. Fitch estimates HMS had a 2%
share of the PI market. Fitch believes HMS's customer concentration
is also high as Cotiviti.
DERIVATION SUMMARY
Cotiviti in conjunction with the completed acquisition of HMS
assets from Gainwell sits at the intersection of data analytics and
health care technology/BPO. Given the margin profile, highly
recurring revenue and tight integration in customer workflows being
closely aligned with data analytics peers, Fitch categorizes
Cotiviti in this sector, while evaluating its comparability to
providers in the health care IT space as well.
The unique nature of the U.S. health care market characterized by
the largest share of GDP among developed economies and expected to
grow at more than 1pt faster than GDP in addition to the
multi-payor models, many of which are insensitive to expenditure
and price, and driven by a host of national, state and local laws
and regulations, make the end market vertical unique versus other
data analytics peers. Fitch notes other data analytics peers tend
to focus on multiple end-market sectors, while acknowledging one of
the main predecessor businesses of Cotiviti was divested from
Verisk, a major data provider to insurance, financial services and
natural resources sectors. Cotiviti maintains a small proportion of
retail end market exposure at approximately 5%.
Cotiviti's pro forma margin profile compares with strong
investment-graded data analytics peers and the overall rated
universe, which see margins in the 30% to 50% range, centered on
approximately 40%. Cotiviti also enjoys very strong revenue
visibility, consistent with an 'a' factor rating within the
Business Services DAP Navigator, reflecting greater than 80% of
revenue being under contract, renewal rates of greater than 90%,
and 90% of revenue considered recurring.
Fitch considers the Sector Environment relative to data analytics
peers, however, to be a limiting factor. While the existence of
many health care analytics and IT firms are due to the complex U.S.
regulatory environment, this presents a risk to the extent payor
models are forced to change dramatically due to unsustainable
health care spending.
Finally, Cotiviti's Financial structure compares unfavorably with
data analytics peers given very high leverage. However, the company
has significant capacity to reduce leverage through EBITDA
expansion on the assumption of robust growth, in line to slightly
above market averages, in reflection of its combined market
position, and realization of reasonable synergies. Fitch sees risk
of continued M&A or capital distributions as potentially leading to
sustained high leverage and weak credit protection metrics.
No Country Ceiling had an impact on the rating. Fitch applied the
updated parent/subsidiary linkage criteria (Dec. 1, 2022) to the
rated entities and determined that all rated entity IDRs should be
equalized. No operating environment aspects had an impact on the
rating.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within the Rating Case for the Issuer:
- High single-digit pro forma revenue growth in 2022,
accelerating to low teens in 2023 reflecting decreased mix
of COVID-related volumes, improved reimbursement rates driving
higher payment integrity demand, and continued growth in
Medicare Advantage covered lives, gradually normalizing to
high single digits over the ratings horizon;
- EBITDA margin expansion of 60 bps over the rating horizon,
reflecting operating leverage, synergy realization and
additional value creation opportunities;
- Capex of 7%-8% of revenue;
- Preferred equity PIK interest capitalized over rating horizon;
- No incremental debt-financed transactions assumed.
KEY RECOVERY RATING ASSUMPTIONS
- The recovery analysis assumes that Cotiviti would be
reorganized as a going-concern in bankruptcy rather
than liquidated;
- Fitch has assumed a 10% administrative claim.
Going-Concern (GC) Approach
The GC EBITDA estimate reflects Fitch's view of a sustainable,
post-reorganization EBITDA level, upon which Fitch bases the
enterprise valuation. Fitch contemplates a scenario in which
coronavirus-related distortion extend through 2023 resulting in
continued deferral of procedures and reduced payment integrity
revenue. Additionally, Cotiviti experiences the permanent loss of
10% of customers due to competitive pressures and does not
experience typical rapid growth.
Under this scenario, Fitch believes EBITDA margins would decline
such that the resulting GC EBITDA is approximately 34% below
proforma LTM Sept. 30, 2022 EBITDA (before run rate cost synergies
to be achieved), resulting from contracted revenue and some cost
containment measures taken by the company in such scenario.
An enterprise multiple of 7x EBITDA is applied to the GC EBITDA to
calculate a post-reorganization enterprise value. The choice of
this multiple considered the following factors:
- The historical bankruptcy case study exit multiples for peer
companies ranged from 2.5x-8.1x, with an average of 6.2x,
details as follows:
- M&A precedent transactions for health care IT peers ranged
from 10x-16x, with recent activity at the upper end of that
range. Additionally, HMS was acquired at a 20.5x multiple,
excluding synergies.
- Similar public companies trade at EBITDA multiples in the
15x-18x range.
Fitch uses a multiple of 7x, in line with health care IT but below
the upper end of the range for data analytics providers, which is
the most comparable.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- EBITDA Leverage sustained at 5.5x or below;
- Cash from operations less capex over total debt with equity
credit sustained above 6.5%;
- EBITDA Interest Coverage sustained above 3x;
- Reduction in customer concentration of largest customers to
below 10%.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- EBITDA Leverage sustained at 7.5x or above;
- Cash from operations less capex over total debt with
equity credit sustained below 5%;
- EBITDA Interest Coverage sustained below 2x;
- Material adverse shift in U.S. health care payor model
or regulation.
LIQUIDITY AND DEBT STRUCTURE
Adequate Liquidity: Cotiviti had approximately $273 million of cash
at Sept. 30, 2022. Further, the company maintains access to its
$285 million undrawn revolving credit facility. Fitch expects
Cotiviti to generate low-teens FCF as a percentage of revenue,
although this assumes no cash payments allocated to the PIK
preferred or other capital distributions. Fitch further expects
Cotiviti to refinance the credit facility prior to maturity.
ISSUER PROFILE
Cotiviti Intermediate Holding Corp. (f/k/a Verscend Intermediate
Holding Corp.) is a leading provider of payment accuracy analytics
to health care organizations and retailers.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Verscend Holding
Corp. LT IDR B Affirmed B
senior
unsecured LT CCC+ Affirmed RR6 CCC+
senior secured LT BB- Affirmed RR2 BB-
Cotiviti
Intermediate
Holding Corp. LT IDR B Affirmed B
COTY INC: Moody's Ups CFR to 'Ba3' & First Lien Loans to 'Ba2'
--------------------------------------------------------------
Moody's Investors Service upgraded Coty Inc.'s Corporate Family
Rating to Ba3 from B1, its Probability of Default Rating to Ba3-PD
from B1-PD, and the company's senior secured first lien credit
facility ratings to Ba2 from Ba3, consisting of a revolving credit
facility and term loan. At the same time, Moody's upgraded the
company's senior secured notes rating to Ba2 from Ba3 and its
unsecured notes rating to B2 from B3. Coty's speculative grade
liquidity rating was upgraded to SGL-1 from SGL-2. The rating
outlook is stable.
The ratings upgrade reflects Coty's continued progress in reducing
financial leverage and strengthening its balance sheet as well as
liquidity, fueled by earnings growth and debt repayment funded from
free cash flow and asset sales. Moody's expects that the company's
debt-to-EBITDA leverage will improve to a low 4x range in fiscal
2024 ending June 30, 2024, supported by further growth in revenue
and earnings as well as voluntarily debt repayment. Coty's
commitment to continue de-leveraging is a key factor in the
upgrade. Coty is targeting to reduce net debt-to-EBITDA (based on
the company's calculation) towards 3.0x by the end of calendar year
2023 from 4.1x as of December 31, 2022, with a further target to
reduce this leverage metric towards roughly 2.0x exiting calendar
year 2025. Coty has executed its business transformation well in
the past two and a half years, and generated healthy growth in both
its prestige and mass portfolios. As a result, Moody's views the
likelihood of the company achieving its leverage target has
significantly increased. Coty has achieved higher revenue and gross
margins by focusing on product premiumization and innovation, brand
repositioning, and investment in marketing and brand support. In
the next 12-18 months, Coty will benefit from continued strong
growth and higher penetration in prestige fragrance globally, a
further recovery in travel retail, and expansions in skincare and
prestige cosmetics at a time when China pivoted its covid-related
policy and reopened its border. Moody's expects Coty will generate
at least $400 million free cash flow annually, supported by
earnings growth, disciplined capital spending, working capital
management, and further cost saving initiatives. Coty's plan to
monetize its remaining 25.9% stake in Wella should ultimately
provide cash to reinvest or further reduce financial leverage.
The upgrade of the speculative grade liquidity rating to SGL-1 from
SGL-2 reflects that the company's improved free cash flow and near
full availability on the $2 billion revolver provides very good
coverage of cash needs including minimal maturities over the next
12 months.
The following ratings are affected by the action:
Upgrades:
Issuer: Coty Inc.
Corporate Family Rating, Upgraded to Ba3 from B1
Probability of Default Rating, Upgraded to Ba3-PD from B1-PD
Speculative Grade Liquidity Rating, Upgraded to SGL-1 from SGL-2
Senior Secured First Lien Bank Credit Facility (revolver and term
loan), Upgraded to Ba2 (LGD3) from Ba3 (LGD3)
Senior Secured Regular Bond/Debenture, Upgraded to Ba2 (LGD3) from
Ba3 (LGD3)
Senior Unsecured Regular Bond/Debenture, Upgraded to B2 (LGD5)
from B3 (LGD5)
Outlook Actions:
Issuer: Coty Inc.
Outlook, Remains Stable
RATINGS RATIONALE
Coty's Ba3 CFR reflects the company's good market position and
improved operating performance that is leading to sizable annual
free cash flow, and the company's commitment to continue to
delever. Moody's anticipates debt-to-EBITDA to improve to a low
4.0x level in the next 12-18 months from 4.9x as of December 31,
2022 primarily due to earnings improvement as well as further debt
repayment funded by free cash flow and asset sales. Coty's earnings
growth is supported by a recovery and expansion from color
cosmetics and travel retail, healthy demand and higher penetration
in prestige fragrance, product premiumization and innovation,
continued focus on marketing and brand support, as well as
well-timed expansion in skincare and China. The rating also
reflects Moody's view that the company will generate at least $400
million free cash flow over the next year as a result of good
earnings growth, disciplined capital spending, additional cost
savings, and working capital management. Moody's believes Coty's
commitment to deleverage is in part motivated by a desire to
improve financial flexibility to restart the dividend, which would
weaken free cash flow. Moody's assumes that any dividend resumption
would be to a level that preserves significant annual free cash
flow.
Coty's product portfolio has a concentration in fragrance and color
cosmetics, the two categories that Moody's views as more exposed to
earnings volatility in an economic downturn compared to skincare
and haircare, which was evidenced by significant category revenue
declines in 2020. Nevertheless, recent strong sector growth and
higher penetration in prestige fragrance compared to the
pre-pandemic level is helping to expand Coty's gross margin. The
free cash flow provides the company further financial flexibility
to invest in marketing and product development, as well as other
strategic pillars such as skincare. Coty is more concentrated than
its primary competitors in mature developed markets in the US and
western Europe. Moreover, Coty relies more heavily on licenses to
support its prestige brands relative to greater ownership of its
mass beauty brands. That said, lower exposure to China benefited
the company in the last two years when China was under strict covid
lock-down and certain of Coty's competitors were much more
negatively impacted. China expansion is one of Coty's strategic
pillars, and Moody's views it a well-timed opportunity for Coty to
launch a Lancaster ultra-premium skincare line in China as the
country reopens, along with its prestige fragrance and cosmetics
push. As there are no major licenses up for renew in the next six
years, brand licensors switching partners is a longer-term risk.
The risk is somewhat mitigated by Coty's good manufacturing,
distribution and marketing capabilities, and successful prestige
product launches. The top six licensing brands are also owned by
different organizations, which creates some diversification. Coty's
ratings are also supported by the company's large scale, its
portfolio of well-recognized brands, and good product and
geographic diversification.
The SGL-1 speculative grade liquidity rating reflects Coty's very
good liquidity with a cash balance of $281 million and over $1.9
billion availability under the $2 billion revolver as of December
31, 2022. The revolver expires in April 2025. Moody's expects the
company to generate at least $400 million free cash flow over the
next year (CFO minus capital spending and dividends), and there are
no debt maturities until April 2025. The total net leverage
covenant steps down to 4.0x in March 2023 from 4.25x currently, and
Moody's expects Coty will maintain good EBITDA cushion within the
covenant.
ENVIRONMENTAL SOCIAL AND GOVERNANCE CONSIDERATIONS
Coty's exposure to environmental risks is moderately negative
(E-3). The company has neutral to low exposure to physical climate
risk, carbon transition, water management, and use of natural
capital risks. Waste and pollution risk is moderately negative
reflecting the waste created from consumer products and packaging
material that often cannot be recycled. The company is addressing
those risks by using less and simplified packaging, exploring
packaging reuse through at-home or in-store refills, and increasing
the amount of recycled materials in its product packaging. Coty
also pioneered using carbon captured ethanol to produce fragrances
in early 2022.
Coty's exposure to social risks is moderately negative (S-3). The
company has neutral-to-low exposure to human capital, and
demographic and societal trends. While consumer facing and focused
on beauty, the company's customer relations risk exposure is
largely mitigated by its status as a large global player that is
well diversified across color cosmetics, skincare and fragrance, as
well as in both mass and prestige markets. The company has over 60%
of revenue earned from prestige products, which Moody's views as
higher growth. Health and safety and responsible production risk
are moderately negative given the company has direct manufacturing
and its products use natural ingredients including palm oil
derivatives. The company is committed towards fully sustainable and
certified ingredients, including to purchase 100% certified palm
oil which partially mitigates that risk.
Coty's governance risk is moderately negative (G-3) as a result of
high leverage and concentrated ownership risks. Coty's past
strategies include building its beauty business with a number of
large and expensive debt-funded acquisitions including P&G Beauty
and Younique. The acquisitions contribute to high leverage that
remains a drag on the current credit rating. Coty is controlled by
JAB Holding Company S.a.r.l. (JAB), who holds approximately 53% of
the stock. Moreover, the company's board of directors has limited
independence given that four of the twelve board members are
related to JAB. Moody's views Coty's financial policies as
improved, including a plan to reduce the company's net
debt-to-EBITDA leverage towards 3.0x by calendar 2023, and towards
2.0x by calendar 2025. The company also demonstrated a continued
focus on lowering leverage and governance risk, including the
partial debt redemption of its 2026 senior unsecured in November
2022.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The stable outlook reflects Moody's expectation that Coty will
continue to generate strong earnings and use free cash flow and
proceeds from asset sales to repay debt and reduce debt-to-EBITDA
leverage to a low 4x by fiscal 2024. The stable outlook also
reflects Moody's expectation that the company will only resume
dividend payments after the company meets its mid to long-term
target leverage ratio of 2.0x-3.5x and the company will maintain at
least good liquidity.
The ratings could be downgraded if Coty's operating performance
deteriorates due to market share losses, revenue declines or an
inability to mitigate cost increases. Coty's ratings could also be
downgraded if it fails to reduce debt-to-EBITDA to below 4.5x, free
cash flow-to-debt is below 7% or if the company pursues material
debt funded acquisitions or shareholder distributions. A
deterioration in liquidity could also lead to a downgrade.
The ratings could be upgraded if the company sustains good
operating performance including organic revenue growth while at
least maintaining the EBITDA margin. Coty would also need to
sustain debt-to-EBITDA below 4.0x and retained cash flow to net
debt above 12% factoring in a potential dividend reintroduction to
be considered for an upgrade. The company would also need to
maintain financial policies that sustain these credit metrics.
The principal methodology used in these ratings was Consumer
Packaged Goods published in June 2022.
Coty Inc., a public company headquartered in New York, NY, is a
manufacturer and marketer of fragrance, color cosmetics, and skin
and body care products. The company's products are sold in over 150
countries. The company generated roughly $5.3 billion in revenue
for the twelve-month ending December 31, 2022. Coty is 53% owned by
a German based investment firm, JAB Holding Company S.a.r.l. (JAB),
with the rest publicly traded or owned by management.
CPC ACQUISITION: $225M Bank Debt Trades at 42% Discount
-------------------------------------------------------
Participations in a syndicated loan under which Cpc Acquisition
Corp is a borrower were trading in the secondary market around 57.9
cents-on-the-dollar during the week ended Friday, February 17,
2023, according to Bloomberg's Evaluated Pricing service data.
The $225 million facility is a Term loan that is scheduled to
mature on December 29, 2028. The amount is fully drawn and
outstanding.
CPC Acquisition Corp is in the chemicals industry.
CROWN COMMERCIAL: Wins Cash Collateral Access Thru March 16
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois,
Eastern Division, authorized Crown Commercial Real Estate and
Development, LLC to use cash collateral on an interim basis in
accordance with the budget.
The Debtor and Rialto Capital Advisors, LLC, have agreed to the
terms of the 13th interim order permitting the Debtor's continued
cash collateral access.
Rialto is the Special Servicer and Attorney-in-Fact for secured
creditor, U.S. Bank National Association, as Trustee for the
benefit of the holders of Morgan Stanley Capital I Inc., Commercial
Mortgage Pass-Through Certificates, Series 2012-05.
The Debtor stipulates and agrees to continue operating its business
and pay expenses only in accordance with the terms of the interim
order from February 17 through March 16, 2023.
Bank of America made a loan to the Debtor in the original principal
amount of $27,450,000, pursuant to a loan agreement dated June 26,
2012. The Loan is evidenced by a promissory note dated June 26,
2012, made by the Debtor and payable to the order of the Original
Lender.
To secure repayment of the Loan, the Debtor executed and delivered
to the Original Lender a Mortgage, Assignment of Leases and Rents,
and Security Agreement dated as of June 26, 2012, encumbering the
Debtor's real property, a real property improved by a shopping
center commonly known as Chatham Village Square Shopping Center,
located at 87th Street and Cottage Grove Avenue, Chicago, IL 60619,
recorded with the Cook County Recorder of Deeds on July 20, 2012,
as document number 1220213054.
As further security for the Loan, the Debtor granted the Original
Lender a lien on all of its personal assets. On June 29, 2012, the
Original Lender perfected its security interest in the Debtor's
assets by filing a UCC Financing Statement with the Illinois
Secretary of State identifying Crown Commercial as the debtor and
the Original Lender as the secured party.
On July 2, 2012, the Original Lender negotiated the Note to the
order of Rialto pursuant to an allonge and delivered the Note with
the Allonge to Rialto.
On August 8, 2012, the Original Lender assigned the Mortgage to
Morgan Stanley Capital I Inc., Commercial Mortgage Pass-Through
Certificates, Series 2012-05, by executing and delivering to the
Lender an Assignment of Mortgage, Assignment of Leases and Rents,
and Security Agreement, which was recorded with the Cook County
Recorder of Deeds on September 10, 2012, as document number
1225408405.
On August 30, 2012, Rialto perfected its security interest in the
Debtor's assets by filing a UCC Financing Statement Amendment with
the Illinois Secretary of State identifying the Debtor as the
debtor and the Lender as the secured party, as subsequently
continued by filing of those UCC Financing Statement Amendments on
September 6, 2012, January 11, 2017, and January 18, 2022.
As of the Petition Date, the Debtor owed Rialto $22,874,831.
The Debtor offers, as adequate protection of the Lender's interest
in the cash Collateral, monthly payments of interest as they were
due pre-petition in accordance with the Loan Documents, and the
Court's condition that the Debtor uses the cash collateral only in
accordance with the Twelfth Budget during the Twelfth Interim
Period. Additionally, the Debtor agrees the Lender's security
interest and liens in the Collateral will create a valid lien on
and security interest in all of the Debtor's property acquired or
generated after the Petition Date, but solely to the same validity,
extent, and priority, and of the same kind and nature, as the liens
and security interests of the Lender securing the Obligations to
the Lender under the Loan Documents.
The Debtor will ensure the payment of all personal property taxes,
real property taxes, sales taxes, payroll taxes, insurance,
maintenance expenses, and payroll/wages in connection with
preserving the Property coming due during the Interim Period.
As further adequate protection, for the use of cash collateral (in
addition to the payment in the Prior Interim Order), the Debtor
will pay the Lender, on or before March 16, 2023, one monthly
interest payment in the amount of $83,144.
These events constitute an "Event of Default":
a. The Debtor's failure to maintain appropriate insurance for
the Collateral;
b. Except for disclosed payments made following the Petition
Date through the date of the Order, if the Debtor pays obligations
not showing on the Budget without the Lender's prior written
consent or further Court order or exceeds the Budget amounts by
more than 15%;
c. The Debtor fails to provide, when due, any reports or
accounting information reasonably required by the Agreed Interim
Order;
d. Any termination by the Court of the Debtor's use of cash
collateral; or
e. Failure to make the Adequate Protection Payment when due.
A further interim hearing on the matter is scheduled for March 15,
2023 at 10 a.m.
A copy of the order and the Debtor's budget is available at
https://bit.ly/3S7zrJ0 from PacerMonitor.com.
The budget provides for total expenses, on a weekly basis, as
follows:
$8,973 for the week ending February 23, 2023;
$553,551 for the week ending March 2, 2023;
$13,933 for the week ending March 9, 2023; and
$92,117 for the week ending March 16, 2023.
About Crown Commercial
Real Estate and Development, LLC
Crown Commercial Real Estate and Development, LLC operates shopping
center, located at 87th Street and Cottage Grove Avenue, Chicago,
IL 60619. The Property consists of a shopping center owned and
operated for 25 years by Crown Commercial.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ill. Case No. 22-05113) on May 3,
2022. In the petition signed by Musa P. Tadro, manager, the Debtor
disclosed up to $50,000 in assets and up to $50 million in
liabilities.
The Law Offices of Konstantine Sparagis is the Debtor's counsel.
Judge Janet S. Baer oversees the case.
CROWN SUBSEA: Moody's Rates New First Lien Bank Loans 'B1'
----------------------------------------------------------
Moody's Investors Service affirmed Crown Subsea Communications
Holding, Inc.'s ("SubCom") B1 Corporate Family Rating, B1-PD
Probability of Default Rating, and B1 rating on the company's
senior secured first lien bank credit facilities. Concurrently,
Moody's assigned a B1 rating to the company's proposed senior
secured bank credit facility consisting of a $470 million first
lien term loan. The outlook is stable.
Net proceeds from the issuance of the new $470 million term loan
will be used to pay a dividend to shareholders. SubCom, which is
owned by funds affiliated with private equity sponsor Cerberus
Capital, has demonstrated a shareholder friendly financial strategy
with a history of dividends funded through incremental debt and
cash from the balance sheet. Pro forma debt/EBITDA (Moody's
adjusted) will increase to 4.2x from 2.3x at the close of the
transaction. Moody's expects leverage to decrease to mid 3x level
over the next 12-18 months driven by organic revenue and EBITDA
growth. The company's controlled ownership could result in elevated
debt balances for potential M&A or further capital return
activities.
Assignments:
Issuer: Crown Subsea Communications Holding, Inc.
Senior Secured 1st Lien Term Loan, Assigned B1 (LGD3)
Affirmations:
Issuer: Crown Subsea Communications Holding, Inc.
Corporate Family Rating, Affirmed B1
Probability of Default Rating, Affirmed B1-PD
Senior Secured 1st Lien Bank Credit Facility, Affirmed B1 (LGD3)
Outlook Actions:
Issuer: Crown Subsea Communications Holding, Inc.
Outlook, Remains Stable
RATINGS RATIONALE
The affirmation of the ratings reflects SubCom's leading market
position as a provider of long-haul fiber optic cable construction,
strong operating performance, and Moody's expectation for further
organic revenue and EBITDA growth through 2024 driven by new
contract wins and increasing backlog. The company's LTM September
2022 revenues have increased by approximately 15% to -$1.1 billion
driven by strong new cable construction demand from internet
content providers as mobile usage, number of connected devices,
shift to cloud computing, and internet adoption continues to
proliferate. Moody's also expects that SubCom will benefit from the
expected increase in the overall Department of Defense budget which
will enable it to increase its market share with non-commercial
customers. The company's current backlog of approximately $3.8
billion is at a historic high which will continue to drive strong
performance over the next 12-18 months.
SubCom's CFR reflects risks associated with the company's
aggressive financial policy resulting in a moderately high
financial leverage, with Moody's adjusted Pro Forma gross
debt/EBITDA of approximately 4.2x based on September 30, 2022 LTM
results. The company's controlled ownership has resulted in
shareholder friendly policies including dividend distributions
through incremental debt and cash from the balance sheet. However,
this risk is partially mitigated by the company's history of
de-levering relatively quickly through debt prepayments. The rating
is also constrained by the historically cyclical, project driven
nature of the market which can result in volatile EBITDA and cash
flow generation from year to year.
However, SubCom will continue to benefit from strong demand for new
cable construction and increased long-haul transmission capacity.
The company's presence as a leading player in the long-haul fiber
optic cable systems construction market provides exposure to
secular industry growth drivers. This should allow SubCom to
capture more market share by serving non-commercial customers. Over
the next 12-18 months, Moody's expects SubCom's revenue to grow in
the mid-teens percent range, supported by a substantial, high
quality, revenue backlog of over $3.8 billion as of LTM December
2022. SubCom's participation in major long-haul cable system builds
over this period will reduce leverage to about 3.5x over the next
12-18 months but Moody's expects that gross leverage will likely
remain in a range between 3x and 5x over time. Cash flow generation
is expected to be slightly volatile depending on the timing of
project milestones.
The stable rating outlook reflects Moody's expectation that
consistent, growing demand for global network bandwidth and
SubCom's strong capabilities and market presence will drive
continued growth in revenue and EBITDA, enabling the company to
de-lever while generating strong free cash flow.
Liquidity is considered good based on SubCom's expected $75 million
of unrestricted balance sheet cash at the close of the transaction
and an undrawn $100 million revolving credit facility. SubCom will
likely spend approximately $23 million on mandatory term loan
amortization and $66 million in capex and refit expenses over the
next 12-18 months. Moody's expects the company to generate strong
operating cash flows of approximately $490mm, offset by significant
dividend payouts which will result in an overall negative free cash
flow for fiscal year 2023. Going forward, Moody's anticipates that
the company will produce about $100 million free cash flow in
fiscal year 2024 which can be used for voluntary debt reduction.
Moody's expects little to no usage of the revolver over the next
12-18 months.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings could be upgraded if SubCom were to demonstrate
conservative financial policies and continued organic revenue and
EBITDA growth such that Moody's expected leverage would be
sustained under 3x on a long-term basis.
The ratings could be downgraded if SubCom were to materially lose
market share such that revenue backlog and EBITDA generation were
to experience declines over time. The ratings could also face
downward pressure if the company were to pursue further shareholder
returns or M&A activity that resulted in a heightened leverage
profile with leverage maintained over 5x on other than a temporary
basis.
ESG CONSIDERATIONS
SubCom's Credit Impact Score is highly negative (CIS-4), reflecting
the company's private equity ownership and expectation for a
shareholder friendly financial policy. The company is also exposed
to highly negative human capital risk resulting from its dependence
upon a highly specialized workforce and moderately negative
environmental risk due to its reliance on fossil fuels and
manufacturing operations.
SubCom's exposure to environmental risk is moderately negative
(E-3). SubCom's fleet of vessels presents carbon transition risks
and waste and pollution risks associated with the use of fuel
necessary to construct subsea cable projects and the company's
manufacturing operations. These projects are constructed in marine
environments and careful consideration goes into geographic
placement. The company's ability to minimize risks associated with
its vessel operations, cable placement and construction are
critical to its operations.
SubCom's exposure to social risk is highly negative (S-4) due to
human capital risk. SubCom is dependent upon a highly specialized
workforce with only three major players in the long haul fiber
construction market. Additionally, the company must uphold good
relations with maritime labor unions through which the company
contracts a portion of its workforce to operate its vessels. The
company has moderately negative health and safety risks stemming
from potential safety hazards at work sites. Responsible production
risk is also moderately negative. However, demographic and societal
risk is neutral-to-low as the company is well positioned for
bandwidth demand and 5G rollout.
SubCom's exposure to governance risk is highly negative (G-4) due
to private equity control and Moody's expectation to have a
shareholder friendly financial strategy which could result in
elevated debt balances for potential M&A or capital return
activities. Additionally, the company does not have an independent
board and lacks public financial disclosure.
The principal methodology used in these ratings was Construction
published in September 2021.
SubCom is a provider of planning, engineering, manufacturing,
installation and maintenance services for the construction of
subsea fiber optic cable systems worldwide, and is one of three
leading global fiber optic cable installers. The company's
customers include telecom providers, operators, internet content
providers, network consortiums and government entities. SubCom,
which is owned by funds affiliated with Cerberus Capital, is
headquartered in Eatontown, NJ and generated revenue of $1,105
million in the LTM period ended September 30, 2022.
CUSTOM ALLOY: Wins Cash Collateral Access Thru Feb 25
-----------------------------------------------------
The U.S. Bankruptcy Court for the District of New Jersey authorized
Custom Alloy Corporation and CAC Michigan, LLC to use the cash
collateral of CIBC Bank USA on an interim basis, nunc pro tunc, to
February 25, 2023.
Custom and CIBC have entered into secured financing arrangements
pursuant to a Loan and Security Agreement dated as of March 4,
2010. CAC Michigan guaranteed the amounts owed by Custom under the
Prepetition Loan Agreement.
As of the Petition Date, the outstanding aggregate principal amount
of the obligations owing by the Debtors to CIBC under the
Prepetition Documents, exclusive of all accrued interest, fees,
costs, expenses, charges, and other Obligations (including legal
fees and expenses) is not less than $21,910 million.
The Debtors' authorization -- and CIBC's consent -- to the use of
cash collateral will terminate, at CIBC's election and without
further notice or Court order, upon the earlier of: (i) 11:59 pm on
February 25, 2023; or (ii) the occurrence of an Event of Default;
or (iii) three business days after CIBC has provided written notice
to the Debtors of the occurrence of an Event of Default.
As adequate protection, CIBC is granted a replacement lien under 11
U.S.C. section 361(2) on all of the Debtors' assets arising after
the Petition Date in an amount equal to the aggregate diminution in
value (if any) of the Prepetition Collateral resulting from the
sale, lease, or use by Debtors of its Prepetition Collateral, or
the imposition of the automatic stay pursuant to Section 362. The
Replacement Lien granted (i) will be deemed automatically valid and
perfected without any further notice or act by any party and (ii)
will remain in full force and effect notwithstanding any subsequent
conversion or dismissal of either Case.
To the extent the adequate protection provided proves insufficient
to protect CIBC's interest in and to cash collateral, CIBC will
have a super priority administrative expense claim, pursuant to 11
U.S.C. section 507(b), senior to any and all claims against the
Debtors section 507(a), whether in this proceeding or in any
superseding proceeding, subject to payments due under 28 U.S.C.
section 1930(a)(6).
Each of these events constitutes an "Event of Default":
a. Either Debtor fails to perform any of its obligations with
respect to use of cash collateral in accordance with the terms of
the Order;
b. Either Case is converted to a case under chapter 7 of the
Bankruptcy Code; or
c. A trustee is appointed or elected in either of the Cases,
or an examiner with expanded power to operate either of the
Debtor's business is appointed in any of the Debtor's respective
Case.
A copy of the Court's order and the Debtor's budget is available at
https://bit.ly/3S9qsXP from PacerMonitor.com.
The Debtor projects $1.898 million in total cash receipts and
$1.908 million in total cash disbursements for the one-week period
ending February 25.
About Custom Alloy Corporation
Custom Alloy Corporation is a manufacturer of specialty metals for
seamless and welded pipe fittings & forgings, predominantly for
customers requiring time-critical maintenance or repair.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.N.J. Case No. 22-18143) on October 13,
2022. In the petition signed by Adam M. Ambielli, its CEO and
president, the Debtor disclosed up to $50 million in assets and up
to $100 million in liabilities.
Judge Michael B. Kaplan oversees the case.
Jonathan I. Rabinowitz, Esq., at Rabinowitz, Lubetkin & Tully, LLC,
is the Debtor's counsel.
An official committee of unsecured creditors has retained Fox
Rothschild LLP as counsel.
DECATUR 429: Seeks to Hire James J. Rufo as Legal Counsel
---------------------------------------------------------
Decatur 429, LLC seeks approval from the U.S. Bankruptcy Court for
the Eastern District of New York to hire The Law Office of James J.
Rufo.
The Debtor requires legal counsel to give advice concerning the
administration of its Chapter 11 case; prepare legal papers,
including a disclosure statement and plan of reorganization; and
perform all other necessary legal services.
The hourly rates of the firm's counsel and staff are as follows:
James J. Rufo, Esq. $400
Paralegals $200
The firm received an initial retainer of $5,000.
James Rufo, Esq., disclosed in a court filing that his firm is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
James J. Rufo, Esq.
The Law Office of James J. Rufo
1133 Westchester Avenues, Suite N-202
White Plains, NY 10604
Telephone: (914) 600-7161
Email: jrufo@jamesrufolaw.com
About Decatur 429
Decatur 429, LLC sought protection for relief under Chapter 11 of
the Bankruptcy Code (Bankr. E.D.N.Y. Case No. 23-40081) on Jan 12,
2023, with as much as $1 million in both assets and liabilities.
Judge Nancy Hershey Lord oversees the case.
The Law Office of James J. Rufo represents the Debtor as counsel.
DELPHI BEHAVIORAL: Asset Sale Proceeds to Fund Plan Payments
------------------------------------------------------------
Delphi Behavioral Health Group, LLC and its affiliates filed with
the U.S. Bankruptcy Court for the Southern District of Florida a
Disclosure Statement for Joint Plan of Liquidation dated February
16, 2023.
Headquartered in Fort Lauderdale, Florida, the Company operated 12
clinical facilities and two recovery residences prior to the
Petition Date located throughout California, Florida, Maryland,
Massachusetts, and New Jersey.
A wind down of the Company's patient care operations in Florida,
California and Maryland was completed on or about January 31, 2023,
with all patients successfully discharged or transferred to other
programming. The Company's operations involving one facility in
Massachusetts and two facilities in New Jersey are the subject of a
proposed sale during these bankruptcy cases and the remaining
operations in New Jersey will be wound down by, on or about
February 28, 2023.
Beginning prior to the Petition Date, and continuing since the
commencement of these Chapter 11 Cases, the Debtors have been
engaged in a process to sell all or substantially all of their
assets. The proposed sale (the "Sale") of the Purchased Assets
(i.e., substantially all of the Debtors' assets related to three of
the Debtors' inpatient or outpatient, substance use disorder
treatment facilities which the Debtors operate in Massachusetts and
New Jersey), will be conducted according to, and consistent with,
the proposed bidding procedures filed with the Court on the
Petition Date and are subject to Court approval at the hearing
scheduled on March 6, 2023.
As of the Petition Date, the Debtors owed approximately $1 million
in taxes and $3.1 million in general unsecured debt to creditors,
comprised of (i) $465,000 owed to non-insider landlords, (ii) $1
million which may be claimed by landlords owned by one or more
former insiders, and (iii) approximately $1.8 million owed to trade
creditors (excluding $12.5 million due from DR Parent, LLC to
Brightwood in connection with the Holdco Prepetition Credit
Agreement, which comprises a part of the $49.5 million).
Class 5 consists of HoldCo Credit Agreement Term Loan Unsecured
Claims. The HoldCo Credit Agreement Term Loan Unsecured Claims
shall be Allowed (without the need to file a Proof of Claim as
reflected in the Final DIP Order), as of the Effective Date, in the
full amount due under the HoldCo Credit Agreement Loan Documents
and the Final DIP Order less any amounts paid or assumed prior to
or on the Effective Date (such amount to be disclosed in the Plan
Supplement).
On the Effective Date, or as soon thereafter as is reasonably
practicable, except to the extent that a holder of an Allowed
HoldCo Credit Agreement Term Loan Unsecured Claim agrees to less
favorable treatment of such Allowed HoldCo Credit Agreement Term
Loan Unsecured Claim, each holder of an Allowed HoldCo Credit
Agreement Term Loan Unsecured Claim shall receive, in full and
final satisfaction of such Claim, (i) its Pro Rata share of the
General Unsecured Claim Cash Recovery (with the amount of such
General Unsecured Claims Cash Recovery to be shared pari passu with
the holders of Allowed General Unsecured Claims in Class 6 of the
Plan), and (ii) its amount of proceeds realized from the
Liquidating Trust Assets in accordance with the Recovery Waterfall.
In no event shall the holder of a HoldCo Credit Agreement Term Loan
Unsecured Claim receive distributions on account of such Claim in
excess of the Allowed amount of such Claim plus accrued
post-petition interest, if any.
Class 6 consists of General Unsecured Claims. On the Effective
Date, or as soon thereafter as is reasonably practicable, except to
the extent that a holder of an Allowed General Unsecured Claim
agrees to less favorable treatment of such Allowed General
Unsecured Claim or such Allowed General Unsecured Claim has been
paid before the Effective Date, each holder of an Allowed General
Unsecured Claim shall receive, in full and final satisfaction of
such Claim, (i) its Pro Rata share of the General Unsecured Claim
Cash Recovery (with the amount of such General Unsecured Claims
Cash Recovery to be shared pari passu with the holders of Allowed
HoldCo Credit Agreement Term Loan Unsecured Claims in Class 5 of
the Plan) and (ii) its amount of proceeds realized from the
Liquidating Trust Assets in accordance with the Recovery Waterfall.
In no event shall the holder of a General Unsecured Claim receive
distributions on account of such Claim in excess of the Allowed
amount of such Claim plus accrued post-petition interest, if any.
Class 7 consists of Intercompany Claims. The holders of
Intercompany Claims shall not receive or retain any property under
the Plan on account of such Claims.
Class 8 consists of Subordinated Claims. The holders of
Subordinated Claims shall not receive or retain any property under
the Plan on account of such Claims.
Class 9 consists of Existing Equity Interests. Solely in the event
that all Allowed Claims have been satisfied in full in accordance
with the Bankruptcy Code and the Plan, each holder of an Existing
Equity Interest may receive its amount of proceeds realized from
the Liquidating Trust Assets consistent with such holder's rights
of payment existing immediately prior to the Petition Date and
solely in accordance with the Recovery Waterfall. The Liquidating
Trustee shall determine, in the Liquidating Trustee's sole
discretion, whether and when to: (i) cancel and extinguish the
Existing Equity Interests; (ii) transfer the Existing Equity
Interests into the Liquidating Trust; or (iii) provide other
treatment for the Existing Equity Interests consistent with the
terms of the Plan and the Sale Order.
On the Effective Date, the Liquidating Trust shall be established
and become effective for the benefit of the Liquidating Trust
Beneficiaries. The powers, authority, responsibilities, and duties
of the Liquidating Trust, and the Liquidating Trustee are set forth
in and shall be governed by the Plan and the Liquidating Trust
Agreement. The Liquidating Trust Agreement shall provide for the
distribution of the Liquidation Trust Assets to the Liquidating
Trust Beneficiaries in accordance with the Recovery Waterfall.
The Liquidating Trust shall consist of Liquidating Trust Assets. On
the Effective Date, and in accordance with sections 1123 and 1141
of the Bankruptcy Code, all title and interest in all of the
Liquidating Trust Assets, which constitute all assets of the
Debtors that have not been distributed on or prior to the Effective
Date, including without limitation all Winddown Assets and Insider
Avoidance Actions, as well as the rights and powers of each Debtor
in such Liquidating Trust Assets, shall irrevocably and
automatically vest in the Liquidating Trust, free and clear of all
liens, Claims, encumbrances and Interests (legal, beneficial or
otherwise) for the benefit of the Liquidating Trust Beneficiaries.
A full-text copy of the Disclosure Statement dated February 16,
2023 is available at https://bit.ly/3xvMR84 from PacerMonitor.com
at no charge.
Proposed Counsel to the Debtors:
Paul Steven Singerman, Esq.
Berger Singerman LLP
1450 Brickell Avenue, Ste. 1900
Miami, FL 33131
Telephone: (305) 755-9500
Facsimile: (305) 714-4340
Email: singerman@bergersingerman.com
About Delphi Behavioral Health Group
Delphi Behavioral Health Group, LLC and several affiliated entities
sought protection under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. S.D. Fla. Lead Case No. 23-10945) on February 6, 2023. In
the petition signed by Edward A. Phillips, interim chief executive
officer, the Debtors disclosed up to $10 million in assets and up
to $10 million in liabilities.
Delphi Behavioral Health Group provides a range of inpatient and
outpatient behavioral healthcare services in the substance use
disorder, addiction and mental health treatment space.
Headquartered in Fort Lauderdale, Florida, Delphi and its
affiliates operated 12 clinical facilities and two recovery
residences prior to the Petition Date, throughout California,
Florida, Maryland, Massachusetts and New Jersey. The levels of care
provided at the clinical facilities range from inpatient and
residential to outpatient (partial hospitalization), intensive
outpatient programming and outpatient programming.
Judge Peter D. Russin oversees the case.
The Debtors tapped Berger Singerman LLP as legal counsel, Getzler
Henrich and Associates as restructuring services provider, and Epiq
Corporate Restructuring, LLC as notice and claims agent.
Brightwood Loan Services, LLC, the Administrative Agent for the
Prepetition Lenders and the Administrative Agent for the DIP
Lenders, is represented by King & Spalding LLP.
DIGIPATH INC: Posts $240K Net Loss in First Quarter
---------------------------------------------------
Digipath, Inc. has filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $240,330 on $726,755 of revenues for the three months ended Dec.
31, 2022, compared to a net loss of $277,603 on $699,585 of
revenues for the three months ended Dec. 31, 2021.
As of Dec. 31, 2022, the Company had $1.18 million in total assets,
$3.73 million in total liabilities, $333,600 in series B
convertible preferred stock, and a total stockholders' deficit of
$2.88 million.
As of Dec. 31, 2022, the Company's balance of cash on hand was
$155,832, and the Company had negative working capital of
$1,465,346 and an accumulated deficit of $20,249,101 resulting from
recurring losses. The Company currently may not have sufficient
funds to sustain its operations for the next twelve months and the
Company may need to raise additional cash to fund its operations
and expand its lab testing business.
Digipath said, "As we continue to develop our lab testing business
and attempt to expand operational activities, we expect to
experience net negative cash flows from operations in amounts not
now determinable, and will be required to obtain additional
financing to fund operations through common stock offerings to the
extent necessary to provide working capital. We have and expect to
continue to have substantial capital expenditure and working
capital needs.
"The Company has incurred recurring losses from operations
resulting in an accumulated deficit, and, as set forth above, the
Company's cash on hand is not sufficient to sustain operations.
These factors raise substantial doubt about the Company's ability
to continue as a going concern. Management is actively pursuing
new customers to increase revenues. In addition, the Company is
currently seeking additional sources of capital to fund short term
operations. In the event sales do not materialize at the expected
rates, management would seek additional financing or would attempt
to conserve cash by further reducing expenses. There can be no
assurance that we will be successful in achieving these objectives,
becoming profitable or continuing our business without either a
temporary interruption or a permanent cessation. In addition,
additional financing may result in substantial dilution to existing
stockholders."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1502966/000149315223004973/form10-q.htm
About DigiPath
Headquartered in Las Vegas, Nevada, Digipath, Inc. --
http://www.digipath.com-- offers full-service testing lab for
cannabis, hemp and ancillary cannabis and hemp infused products
serving growers, dispensaries, caregivers, producers, patients and
eventually all end users of cannabis and botanical products.
DigiPath reported a net loss of $2.06 million for the year ended
Sept. 30, 2022, compared to a net loss of $686,503 for the year
ended Sept. 30, 2021. As of Sept. 30, 2022, the Company had $1.34
million in total assets, $3.75 million in total liabilities,
$333,600 in series B convertible preferred stock, and a total
stockholders' deficit of $2.74 million.
Houston, Texas-based M&K CPAS, PLLC, the Company's auditor since
2017, issued a "going concern" qualification in its report dated
Jan. 17, 2023, citing that the Company has recurring losses from
operations and insufficient working capital, which raises
substantial doubt about its ability to continue as a going concern.
DIXIE HOME: Voluntary Chapter 11 Case Summary
---------------------------------------------
Debtor: Dixie Home Solutions, Inc.
DBA Ionix
DBA Ionix Smart Solutions
DBA Dixie Solar Solutions
DBA Desert Home Solutions
DBA Underdog Roofing
DBA Ionix Solar
DBA Eagle Eye Roofing
DBA Break Free Roofing
4012 S River Rd Suite 5B
Saint George, UT 84790
Business Description: The Debtor is locally owned & operated
solar panels and solar energy company
serving residential and commercial
customers.
Chapter 11 Petition Date: February 20, 2023
Court: United States Bankruptcy Court
District of Utah
Case No.: 23-20557
Judge: Hon. William T. Thurman
Debtor's Counsel: Geoffrey L. Chesnut, Esq.
RED ROCK LEGAL SERVICES, PLLC
PO Box 1948
Cedar City, UT 84721
Tel: (435) 634-1000
Email: courtmailrr@expresslaw.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Chris Grover as authorized
representative.
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/P75SHEY/Dixie_Home_Solutions_Inc__utbke-23-20557__0001.0.pdf?mcid=tGE4TAMA
DRY MORE: Unsecured Creditors to Get Share of Income for 60 Months
------------------------------------------------------------------
Dry More Company filed with the U.S. Bankruptcy Court for the
Southern District of Texas a Plan of Reorganization for Small
Business dated February 16, 2023.
Dry More is a company that provides water damage treatment, mold
remediation, mold inspection, HVAC duct cleaning and related
services. Dry More has a license from the State of Texas for mold
remediation.
This Plan of Reorganization proposes to pay Debtor's creditors from
the cash flow generated in the ordinary course of the Debtor's
business after confirmation.
Class 1 consists of the allowed claim for ad valorem taxes owed to
Harris County, et al. Dry More will pay the claim in approximately
equal monthly payments at 12% per annum starting in the month
following the Effective Date such that the claim is paid in full on
or before December 1, 2027. The claim filed in this class was for
$3,472.75.
Class 2 consists of the allowed claim for ad valorem taxes owed to
Cypress Fairbanks Independent School District. Dry More will pay
the claim in approximately equal monthly payments at 12% per annum
starting in the month following the Effective Date such that the
claim is paid in full on or before December 1, 2027. The claim
filed in this class was for $5,348.06.
Class 3 consists of the allowed claim of Veritex Community Bank.
Dry More will pay the amount of $150,000 to the class 3 creditor in
full satisfaction of the claim will pay the claim in approximately
equal monthly payments at 12% per annum starting in the month
following the Effective Date such that the claim is paid in full on
or before December 1, 2027 the Effective Date, the Debtor may
dispose of the collateral with no liability for the disposition to
the creditor. The claim filed in this class was for $1,374,902.27.
The Debtor estimated the value of the collateral at approximately
$150,000, subject to appraisal.
Class 4 consists of the allowed non-priority unsecured claims. Dry
More will pay the projected disposable income for 60 months
following the Effective Date to creditors in this class with
allowed claims. Dry More may pay such amounts calendar quarterly
starting with the first full calendar quarter after the Effective
Date. The claims in this class total $525,602.26. The Debtor
disputes claims 3 and 5.
Class 5 consists of the equity security holders of the Debtor. The
equity holders will retain the interest in the Debtor.
A full-text copy of the Plan of Reorganization dated February 16,
2023 is available at https://bit.ly/3XKY4fL from PacerMonitor.com
at no charge.
Attorney for the Debtor:
Reese W. Baker, Esq.
Baker & Associates
950 Echo Lane, Ste. 300
Houston, TX 770024
Telephone: (713) 869-9200
Facsimile: (713) 869-9100
Email: courtdocs@bakerassociates.net
About Dry More Company
Dry More Company is a water damage restoration services in Houston,
Texas.
Dry More Company sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Texas Case No. 22-33532) on Nov. 30,
2022, with up to $500,000 in assets and up to $10 million in
liabilities. Jessica Lykins, president of Dry More Company, signed
the petition.
Judge Christopher M. Lopez oversees the case.
Reese W. Baker, Esq., at Baker & Associates, is the Debtor's
counsel.
DRY MORE: Wins Interim Cash Collateral Access
---------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas,
Houston Division, authorized Dry More Company to use cash
collateral on an interim basis in accordance with the budget.
The Debtor is permitted to use cash collateral to meet its
post-petition obligations in the ordinary course of business.
The Debtor's secured lender, Veritex Community Bank, consents to
the use of cash collateral in the amount and categories as listed
on the budget.
To the extent the Lender has valid, perfected security interests,
the Lender is granted valid, perfected, and enforceable replacement
security interests in and liens and mortgages upon all categories
of property of the Debtor and its estate.
As additional adequate protection to Veritex, on or before their
due date(s) pursuant to the Veritex loan documents, the Debtor will
make adequate protection payments to Veritex.
The liens on the PostPetition Collateral are subordinated to fees
payable to the United States Trustee pursuant to 28 U.S.C. section
1930(a)(6) and any carve out for attorney's fees as authorized by
the Court.
The Debtor is also directed to maintain insurance with respect to
all Prepetition Collateral and Post Petition Collateral, both real
and personal property.
A copy of the order is available at https://bit.ly/3YTXqxs from
PacerMonitor.com.
About Dry More Company
Dry More Company is a water damage restoration services in Houston,
Texas. The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Case No. 22-33532) on November
30, 2022. In the petition signed by Jessica Lykins, president, the
Debtor disclosed up to $500,000 in assets and up to $10 million in
liabilities.
Judge Christopher M. Lopez oversees the case.
Reese W. Baker, Esq., at Baker & Associates, is the Debtor's
counsel.
EAGLE MECHANICAL: Court OKs Interim Cash Collateral Access
----------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Indiana,
Indianapolis Division, authorized Eagle Mechanical Inc. to use cash
collateral on an interim basis in accordance with the budget.
The Debtor's secured lender, First Merchants Bank, N.A., has
consented to the use of cash collateral on a limited basis.
The Debtor is permitted to use cash collateral to pay necessary
expenses, which are approved by Creditor in writing in advance.
To the extent First Merchants has an interest in the Debtor's cash
collateral, the Court grants the bank adequate protection as
follows:
a. First Merchants is granted post-petition replacement liens
in the cash of the Debtor; and
b. First Merchants is further granted a post-petition
replacement lien against (i) any accounts receivable created
post-petition; (ii) any inventory or equipment acquired
post-petition; and (iii) the products and proceeds thereof; and
c. The replacement liens granted secure the total aggregate
amount of the value of the cash collateral that existed as of the
Petition Date and is used by Debtor to the same extent and priority
as First Merchants' properly perfected, prepetition security
interest.
A continued preliminary hearing on the matter is set for March 6,
2023 at 11 a.m.
A copy of the order is available at https://bit.ly/3YKq0S6 from
PacerMonitor.com.
About Eagle Mechanical Inc.
Eagle Mechanical Inc. sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Ind. Case No. 22-00291) on
January 27, 2023. In the petition signed by Rogelio Mancilla Jr.,
chief executive officer, the Debtor disclosed $7,751,209 in assets
and $9,136,761 in liabilities.
Judge James M. Carr oversees the case.
Weston Overturf, Esq., at Overturf Fowler LLP, is the Debtor's
legal counsel.
EMERALD ELECTRICAL: Court OKs Interim Cash Collateral Access
------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Georgia,
Gainesville Division, authorized Emerald Electrical Consultants LLC
to use cash collateral on an interim basis in accordance with the
budget.
As previously reported by the Troubled Company Reporter, Emerald
Electrical and its affiliates are borrowers on certain loans with
First US Bank, which asserts security interests in certain of the
Debtor's personal property. The revenue from the Debtor's business
may constitute cash collateral.
As adequate protection, the Lender and any other secured creditor
will continue to hold liens as set forth in the First Interim
Order.
As further adequate protection, and as a further condition of the
continued use of cash collateral, the Debtor will pay the Lender a
monthly adequate protection payment in an amount equal to the
monthly principal and interest due under the various loans made by
the Lender to the Debtor, which total amount shall be provided by
the Lender to the Debtor on or before the first day of each
calendar month. A single adequate protection payment will be made
for the month of February 2023 on or before February 20, 2023.
Subsequent adequate protection payments will be made on or before
the sixth day of each consecutive month thereafter during the
Fourth Interim Period.
A final hearing on the matter is set for March 16, 2023 at 10:30
a.m.
A copy of the order is available at https://bit.ly/41870yu from
PacerMonitor.com.
About Emerald Electrical Consultants LLC
Emerald Electrical Consultants LLC specializes in substation
construction, related technical services, and consulting across the
United States, with a focused presence in the southeastern and
central regions of the country. The Debtor sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No.
22-20913) on September 15, 2022. In the petition signed by Lindy
Truitt, president and CEO, the Debtor disclosed up to $10 million
in both assets and liabilities.
Judge James R. Sacca oversees the case.
Benjamin Keck, Esq., at Keck Legal, LLC, is the Debtor's counsel.
ENDO INTERNATIONAL: Committee Taps William Fry as Irish Counsel
---------------------------------------------------------------
The official committee of unsecured creditors of Endo International
plc and its affiliates received approval from the U.S. Bankruptcy
Court for the Southern District of New York to employ William Fry,
LLP as Irish counsel.
The firm's services include:
a) advising and assisting the committee in connection with any
Irish legal or tax issue that may arise in the Debtors' Chapter 11
cases; and
b) advising the committee with regards to Irish legal or tax
issues in negotiations concerning any bidding procedures or
proposed sale under Section 363 of the Bankruptcy Code.
William Fry will be paid at these rates:
Partners EUR680 per hour
Consultants EUR600 per hour
Senior Associates EUR515 per hour
Associates EUR450 per hour
Trainees/Paralegals EUR270 per hour
Mark Talbot, Esq., a partner at William Fry, disclosed in a court
filing that his firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
In accordance with Appendix B-Guidelines for reviewing fee
applications filed by attorneys in larger Chapter 11 cases, William
Fry disclosed the following:
Question: Did you agree to any variations from, or alternatives
to, your standard or customary billing arrangements for this
engagement?
Response: No.
Question: Do any of the professionals included in this
engagement vary their rate based on the geographic location of the
bankruptcy case?
Response: No.
Question: If you represented the client in the 12 months
prepetition, disclose your billing rates and material financial
terms for the prepetition engagement, including any adjustments
during the 12 months prepetition. If your billing rates and
material financial terms have changed postpetition, explain the
difference and the reasons for the difference.
Response: Not applicable.
Question: Has your client approved your prospective budget and
staffing plan, and, if so for what budget period?
Response: The firm is developing a budget and staffing plan
that will be presented for approval by the committee.
William Fry can be reached at:
Mark Talbot, Esq.
William Fry, LLP
2 Grand Canal Square,
Dublin 2, D02 A342,
Ireland
Tel: +353 1 639 5000
Email: info@williamfry.com
About Endo International plc
Endo International plc is a generics and branded pharmaceutical
company. It develops, manufactures, and sells branded and generic
products to customers in a wide range of medical fields, including
endocrinology, orthopedics, urology, oncology, neurology, and other
specialy areas. On the Web: http://www.endo.com/
On August 16, 2022, Endo International and certain of its
subsidiaries initiated voluntary prearranged Chapter 11 proceedings
(Bankr. S.D.N.Y. Lead Case No. 22-22549). The cases are pending
before Judge James L. Garrity, Jr. The Debtors have put up a Web
site dedicated to its restructuring: http://www.endotomorrow.com/
The Debtors tapped Skadden, Arps, Slate, Meagher & Flom, LLP as
legal counsel; PJT Partners, LP as investment banker; and Alvarez &
Marsal North America, LLC as financial advisor. Kroll Restructuring
Administration, LLC is the claims agent and administrative
advisor.
Roger Frankel, the legal representative for future claimants in
these Chapter 11 cases, tapped Frankel Wyron LLP and Young Conaway
Stargatt & Taylor, LLP as legal counsels, and Ducera Partners, LLC
as investment banker.
The U.S. Trustee for Region 2 appointed an official committee of
unsecured creditors on Sept. 2, 2022. The committee tapped Kramer
Levin Naftalis & Frankel as legal counsel; Lazard Freres & Co. LLC
as investment banker; and Dundon Advisers, LLC and Berkeley
Research Group, LLC as financial advisors.
Meanwhile, the official committee representing the Debtors' opioid
claimants tapped Cooley, LLP as bankruptcy counsel; Akin Gump
Strauss Hauer & Feld, LLP as special counsel; Province, LLC as
financial advisor; and Jefferies, LLC as investment banker.
David M. Klauder, Esq., the court-appointed fee examiner, is
represented by Bielli & Klauder, LLC.
ENDO INTL: Renaissance Technologies No Longer Owns Common Shares
----------------------------------------------------------------
In a Schedule 13G filed with the Securities and Exchange
Commission, Renaissance Technologies LLC disclosed that as of Dec.
30, 2022, it ceased to be the beneficial owner of shares of common
stock of ENDO International PLC.
A full-text copy of the regulatory filing is available for free at
https://tinyurl.com/49rdvjxh
About Endo International plc
Endo International plc -- http://www.endo.com/-- is a generics and
branded pharmaceutical company. It develops, manufactures, and
sells branded and generic products to customers in a wide range of
medical fields, including endocrinology, orthopedics, urology,
oncology, neurology, and other specialty areas.
On August 16, 2022, Endo International and certain of its
subsidiaries initiated voluntary prearranged Chapter 11 proceedings
(Bankr. S.D.N.Y. Lead Case No. 22-22549). The cases are pending
before Judge James L. Garrity, Jr. The Debtors have put up a Web
site dedicated to its restructuring: http://www.endotomorrow.com/
The Debtors tapped Skadden, Arps, Slate, Meagher & Flom, LLP as
legal counsel; PJT Partners, LP as investment banker; and Alvarez &
Marsal North America, LLC as financial advisor. Kroll Restructuring
Administration, LLC is the claims agent and administrative
advisor.
Roger Frankel, the legal representative for future claimants in
these Chapter 11 cases, tapped Frankel Wyron LLP and Young Conaway
Stargatt & Taylor, LLP as legal counsels, and Ducera Partners, LLC
as investment banker.
The U.S. Trustee for Region 2 appointed an official committee of
unsecured creditors on Sept. 2, 2022. The committee tapped Kramer
Levin Naftalis & Frankel as legal counsel; Lazard Freres & Co. LLC
as investment banker; and Dundon Advisers, LLC and Berkeley
Research Group, LLC as financial advisors.
Meanwhile, the official committee representing the Debtors' opioid
claimants tapped Cooley, LLP as bankruptcy counsel; Akin Gump
Strauss Hauer & Feld, LLP as special counsel; Province, LLC as
financial advisor; and Jefferies, LLC as investment banker.David M.
Klauder, Esq., the court-appointed fee examiner, is
represented by Bielli & Klauder, LLC.
ENVISION HEALTHCARE: $1B Bank Debt Trades at 80% Discount
---------------------------------------------------------
Participations in a syndicated loan under which Envision Healthcare
Corp is a borrower were trading in the secondary market around 20.1
cents-on-the-dollar during the week ended Friday, February 17,
2023, according to Bloomberg's Evaluated Pricing service data.
The $1 billion facility is a Term loan that is scheduled to mature
on March 31, 2027. The amount is fully drawn and outstanding.
Envision Healthcare Corporation provides health care services. The
Hospital offers surgery, pharmacy, medical imaging, emergency care,
and other related health care services. Envision Healthcare serves
patients in the United States.
ENVISION HEALTHCARE: $5.45B Bank Debt Trades at 68% Discount
------------------------------------------------------------
Participations in a syndicated loan under which Envision Healthcare
Corp is a borrower were trading in the secondary market around 31.6
cents-on-the-dollar during the week ended Friday, February 17,
2023, according to Bloomberg's Evaluated Pricing service data.
The $5.45 billion facility is a Term loan that is scheduled to
mature on October 10, 2025. About $3.73 billion of the loan is
withdrawn and outstanding.
Envision Healthcare Corporation provides health care services. The
Hospital offers surgery, pharmacy, medical imaging, emergency care,
and other related health care services. Envision Healthcare serves
patients in the United States.
EQUINOX HOLDINGS: Moody's Appends 'LD' Designation to 'Ca' PDR
--------------------------------------------------------------
Moody's Investors Service appended a limited default (LD)
designation to Equinox Holdings Inc.'s Ca-PD Probability of Default
Rating thereby changing it to Ca-PD/LD. The /LD designation is to
reflect there was a limited default in Equinox's capital structure
with regards to the recent amendment to extend the maturity of its
$76 million revolver ($71 million outstanding currently) from March
8, 2023 to November 8, 2023. Moody's views the amendment to extend
the maturity as a distressed exchange default ("DE") because of
Equinox's inability to fund the maturity through existing cash
necessitated the extension as well as the company's negative free
cash flow, high leverage, and weak liquidity with looming
maturities. The PDR will revert to Ca-PD and the /LD designation
will be removed in approximately three business days.
The transaction does not affect the company's Caa3 Corporate Family
Rating, the Caa2 rating on the company's senior secured first lien
credit facilities consisting of the $71 million revolver expiring
in November 2023 and $1.19 billion term loan maturing in March
2024, the Ca rating on the $200 million second lien term loan due
September 2024, or the negative outlook because leverage is not
changing and remains high with weak liquidity.
LD Appended:
Issuer: Equinox Holdings, Inc.
Probability of Default Rating, Changed to Ca-PD /LD (/LD appended)
from Ca-PD
RATINGS RATIONALE
Equinox's Caa3 CFR reflects Moody's view that the company's capital
structure with approximately $1.46 billion of funded debt is
unsustainable in its current form due to weak earnings, a rising
interest burden, and weak liquidity with significant looming
maturities. The company's newly extended revolver expires in
November 2023 and the $1.19 billion first lien term loan matures in
March 2024. Leverage is very high with Moody's lease adjusted
debt-to-EBITDA in the high teens multiple for the LTM period ended
September 30, 2022. Moody's expects leverage will decline although
it will remain high in a low to mid teens multiple through FY 2023.
Liquidity is expected to remain weak in FY23 with a continued free
cash flow deficit. Equinox's ratings are also constrained by the
highly fragmented and competitive fitness club industry leading to
high business risk given its low barriers to entry, exposure to
cyclical shifts in discretionary consumer spending, and high
attrition rates. In addition, the rating reflects the company's
geographic concentration in New York City and coastal California.
However, the rating is supported by Equinox's well-recognized brand
names and strong market position among upscale fitness clubs.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The negative outlook reflects the high likelihood for a balance
sheet restructuring or distressed exchange given Equinox's very
high debt level, slow recovery in earnings and weak liquidity
including negative free cash flow and looming maturities.
Ratings could be upgraded if earnings and liquidity improve
significantly and the company successfully address its maturities.
The ratings could be downgraded if operating performance weakens,
the potential for a distressed exchange or other default increases
for any reason, or estimated recovery values weaken.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
Equinox Holdings, Inc., headquartered in New York, NY, operates 106
fitness facilities across the US, Canada and the UK. Equinox is
majority-owned by individuals and entities affiliated with Related
Companies, L.P. ("Related"), a privately held New York real estate
firm, with L Catterton and members of management holding a minority
interest. Equinox's revenues were approximately $780 million for
the trailing twelve months ended September 30, 2022.
ESCALON MEDICAL: Posts $6K Net Loss in Second Quarter
-----------------------------------------------------
Escalon Medical Corp. has filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $6,043 on $3 million of net revenues for the three months ended
Dec. 31, 2022, compared to a net loss of $53,154 on $2.70 million
of net revenues for the three months ended Dec. 31, 2021.
For the six months ended Dec. 31, 2022, the Company reported a net
loss of $326,767 on $5.61 million of net revenues compared to a net
income of $264,066 on $5.37 million of net revenues for the same
period in 2021.
As of Dec. 31, 2022, the Company had $4.64 million in total assets,
$3.49 million in total liabilities, and $1.15 million in total
shareholders' equity.
The Company's total cash on hand as of Dec. 31, 2022 was
approximately $313,000 of cash on hand and restricted cash of
approximately $256,000 compared to approximately $594,000 of cash
on hand and restricted cash of $256,000 as of June 30, 2022.
Approximately $48,000 was available under the Company's line of
credit as of Dec. 31, 2022.
"Because the Company's operations have not historically generated
sufficient revenues to enable profitability, we will continue to
monitor costs and expenses closely and may need to raise additional
capital or take other actions in order to fund operations.
"The Company expects to continue to fund operations from cash on
hand and through capital raising sources if possible and available,
which may be dilutive to existing stockholders, through revenues
from the licensing of the Company's products, or through strategic
alliances. Additionally, we may seek to sell additional equity or
debt securities through one or more discrete transactions, or enter
into a strategic alliance arrangement, but can provide no
assurances that any such financing or strategic alliance
arrangement will be available on acceptable terms, or at all.
Moreover, the incurrence of indebtedness in connection with a debt
financing would result in increased fixed obligations and could
contain covenants that would restrict our operations.
"As of Dec. 31, 2022 we had an accumulated deficit of approximately
$69.2 million, incurred recurring losses from operations and
negative cash flows from operating activities. These factors raise
substantial doubt regarding our ability to continue as a going
concern, and our ability to generate cash to meet our cash
requirements for the following twelve months as of the date of this
form 10-Q."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/862668/000086266823000008/esmc-20221231.htm
About Escalon
Headquartered in Wayne, Pennsylvania, Escalon Medical Corp.
operates in the healthcare market, specializing in the
development,
manufacture, marketing and distribution of medical devices for
ophthalmic applications.
Escalon reported net income of $18,081 for the year ended June 30,
2022, compared to a net loss of $52,023 for the year ended June 30,
2021. As of Sept. 30, 2022, the Company had $4.93 million in total
assets, $3.77 million in total liabilities, and $1.16 million in
total shareholders' equity.
Marlton, New Jersey-based Friedman LLP, the Company's auditor since
2018, issued a "going concern" qualification in its report dated
Sept. 28, 2022, citing that the Company's significant accumulated
deficit and recurring losses from operations and negative cash
flows from operating activities in the current year and prior years
raise substantial doubt about the Company's ability to continue as
a going concern.
EVOKE PHARMA: Board Appoints Matthew D'Onofrio as President, COO
----------------------------------------------------------------
Evoke Pharma Inc. disclosed in its Form 8-K Report filed with the
Securities and Exchange Commission that Matthew J. D'Onofrio has
been appointed as its president and chief operating officer.
The Board of Directors of Evoke Pharma appointed Matthew J.
D'Onofrio, the Company's Executive Vice President and Chief
Business Officer, to the positions of President and Chief Operating
Officer, effective as of February 8, 2023. Mr. D'Onofrio continues
to serve as the Company's Treasurer and Secretary.
On February 8, 2023, in connection with Mr. D'Onofrio's promotion
to the positions of President and Chief Operating Officer, the
Compensation Committee of the Board approved (i) a $33,000 base
salary increase for an aggregate base salary of $450,000, effective
as of February 8, 2023, (ii) a target bonus percentage for fiscal
year 2023 of 50%, and (iii) a stock option to purchase 25,000
shares of the Company's common stock. To the extent permitted by
applicable tax law, such options were granted in the form of an
incentive stock option pursuant to the Company's 2013 Incentive
Award Plan. The options will vest on the four-year anniversary of
the date of grant, subject to Mr. D’Onofrio's continued service
to the Company. The options have an exercise price per share equal
to the closing price per share of the Company's common stock on
February 8, 2023, as reported on the Nasdaq Stock Market.
Mr. D'Onofrio, 53, is one of the Company's co-founders. Prior to
his promotion, Mr. D'Onofrio had served as the Company's Executive
Vice President, Chief Business Officer, Secretary and Treasurer
since 2010 and previously served as the Company's Executive Vice
President, Corporate Development, Secretary and Treasurer from 2007
to 2010. Mr. D'Onofrio has over 30 years of experience in both
large and small pharmaceutical firms. Prior to founding Evoke, Mr.
D’Onofrio was Vice President, Business Development for Victory
Pharma, a specialty pharmaceutical company based in San Diego. Mr.
D’Onofrio was previously Director and Head of West Coast Business
Development at Vertex Pharmaceuticals, Incorporated, a
biotechnology company, directing partnership efforts associated
with the La Jolla research facility as well as other corporate
assets. Mr. D'Onofrio also held various commercial roles of
increasing responsibility over a decade at Eli Lilly & Company,
including significant experience in worldwide corporate business
development. Mr. D'Onofrio earned a B.S. in Chemistry from San
Diego State University and an M.B.A. from the University of
Southern California.
In connection with Mr. D'Onofrio’s promotion, David A. Gonyer,
R.Ph., resigned from the position of President, effective as of
February 8, 2023. Mr. Gonyer continues to serve as the Company’s
Chief Executive Officer.
About Evoke Pharma
Headquartered in Solana Beach, California, Evoke Pharma, Inc. --
http://www.evokepharma.com-- is a specialty pharmaceutical company
focused primarily on the development of drugs to treat GI disorders
and diseases. The Company is developing Gimoti, a nasal spray
formulation of metoclopramide, for the relief of symptoms
associated with acute and recurrent diabetic gastroparesis in adult
women.
As of Sept. 30, 2022, the Company had $13.41 million in total
assets, $7.88 million in total liabilities, and $5.53 million in
total stockholders' equity.
San Diego, California-based BDO USA, LLP, the Company's auditor
since 2014, issued a "going concern" qualification in its report
dated March 8, 2022, citing that the Company has suffered recurring
losses and negative cash flows from operations since inception.
These factors raise substantial doubt about the Company's ability
to continue as a going concern.
In the September 2022 report, Evoke Pharma acknowledged that there
is substantial doubt about its ability to continue as a going
concern. The Company said, "Management concluded that there is
substantial doubt about our ability to continue as a going concern.
This doubt about our ability to continue as a going concern for at
least twelve months from the date of issuance of the financial
statements could materially limit our ability to raise additional
funds through the issuance of new debt or equity securities or
otherwise. Future reports by our independent registered accounting
firm on our financial statements may also include an explanatory
paragraph with respect to our ability to continue as a going
concern. We have incurred significant losses since our inception
and have never been profitable, and it is possible we will never
achieve profitability. We believe, based on our current operating
plan, that our cash and cash equivalents as of September 30, 2022
of approximately $12.4 million, as well as future cash flows from
net sales of Gimoti, will be sufficient to fund our operations into
the second quarter of 2023. This period could be shortened if
there are any significant increases in planned spending other than
anticipated. We anticipate we will be required to raise additional
funds in order to continue as a going concern. Because our
business is entirely dependent on the success of Gimoti, if we are
unable to secure additional financing or identify and execute on
other development or strategic alternatives for Gimoti or our
company, we will be required to curtail all of our activities and
may be required to liquidate, dissolve or otherwise wind down our
operations. Any of these events could result in a complete loss of
your investment in our securities."
EXELA TECHNOLOGIES: Shay Capital Has 6.75% Stake as of Feb. 2
-------------------------------------------------------------
In a Schedule 13G filed with the Securities and Exchange
Commission, Shay Capital LLC disclosed that as of Feb. 2, 2022, it
beneficially owns 8,250,000 shares of common stock of Exela
Technologies Inc., representing 6.75% of the shares outstanding.
A full-text copy of the regulatory filing is available for free at
https://tinyurl.com/4m8zan88
About Exela Technologies LLC
Exela Intermediate LLC / Exela Finance Inc operate as a dual issuer
and special purpose entity. The Company was formed for the purpose
of issuing debt securities to repay existing credit facilities,
refinance indebtedness, and for acquisition purposes.
As of Sept. 30, 2022, the Company had $865.27 million in total
assets, $1.51 billion in total liabilities, and a total
stockholders' deficit of $647.56 million.
* * *
In January 2023, Exela Intermediate, LLC, an indirect, wholly-owned
subsidiary of Exela Technologies, Inc., did not make the
semi-annual interest payments due under its 11.500% First-Priority
Senior Secured Notes due 2026 and 10.0% First Priority Senior
Secured Notes due 2023. As provided for in the indentures
governing the Notes, Intermediate has a 30-day grace period to make
the Interest Payments.
Exela Technologies said Intermediate is in advanced discussions
with potential third-party sources of liquidity, and believes it is
likely that together with liquidity to be provided by ETI and its
other subsidiaries Intermediate will have funds sufficient to meet
the coupon payments due under the 2026 Senior Notes and the stub of
the remaining 2023 Senior Notes during the grace period. However,
there can be no assurance that Intermediate will be successful in
raising sufficient capital to make such coupon payments.
In its September 2022 quarterly report, the Company warned that
there is is substantial doubt about its ability to continue as a
going concern. While the Company has undertaken and completed its
plans and
actions to improve its available cash balances, liquidity or cash
generated from operations, the Company admitted it will need to
take further action to raise additional funds in the capital
markets.
FARMHOUSE CREATIVE: Court OKs Cash Collateral Access Thru March 15
------------------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida,
Orlando Division, authorized Farmhouse Creative, LLC to use cash
collateral on an interim in accordance with the budget, through
March 15, 2023.
The Debtor is permitted to use cash collateral to pay: (a) amounts
expressly authorized by the Court, including payments to the
Subchapter V Trustee and payroll obligations incurred post-petition
in the ordinary course of business; (b) the current and necessary
expenses set forth in the budget, with a 10% variance; and (c)
additional amounts as may be expressly approved in writing by
Florida Business Development Corporation.
As adequate protection for the use of cash collateral, the Secured
Creditor will have a perfected post-petition lien against cash
collateral to the same extent and with the same validity and
priority as the prepetition lien, without the need to file or
execute any documents as may otherwise be required under applicable
non-bankruptcy law.
The Debtor will maintain insurance coverage for its property in
accordance with the obligations under all applicable loan and
security documents.
A further hearing on the matter is set for March 15 at 11 a.m.
A copy of the Court's order and the Debtor's budget is available at
https://bit.ly/3EloIFa from PacerMonitor.com.
The Debtor projects total expenses, on a weekly basis, as follows:
$857 for the week ending February 13, 2023;
$1,719 for the week ending February 20, 2023;
$504 for the week ending February 27, 2023;
$840 for the week ending March 6, 2023;
$664 for the week ending March 13, 2023; and
$1,148 for the week ending March 20, 2023.
About Farmhouse Creative, LLC
Farmhouse Creative, LLC is a closely held Florida limited liability
company formed in 2019 for the purpose of acquiring and operating
the KidzArt Orlando franchise. KidzArt Orlando offers a unique art
enrichment program where children can learn to draw, learn about
art, and enhance their creativity.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 23-00178) on January 18,
2023. In the petition signed by Dawn Farmer, managing member, the
Debtor disclosed up to $500,000 in both assets and liabilities.
Judge Tiffany P. Geyer oversees the case.
Daniel A. Velasquez, Esq., at Latham Luna Eden and Beaudine LLP,
represents the Debtor as legal counsel.
FARMHOUSE CREATIVE: Seeks to Hire Latham as Legal Counsel
---------------------------------------------------------
Farmhouse Creative, LLC seeks approval from the U.S. Bankruptcy
Court for the Middle District of Florida to employ Latham Luna Eden
& Beaudine, LLP as its legal counsel.
The firm's services include advising the Debtor as to its rights
and duties in its Chapter 11 case; preparing pleadings, including a
plan of reorganization; and taking all other necessary actions
incident to the proper preservation and administration of the
Debtor's estate.
Latham will charge $475 per hour for attorney's services and $105
per hour for paraprofessional services. Daniel Velasquez, Esq., the
attorney primarily working on the bankruptcy case, charges $275 to
$385 per hour.
In addition, the firm will seek reimbursement for its out-of-pocket
expenses.
The firm received from the Debtor an advance fee of $17,738.
Daniel Velasquez, Esq., a partner at Latham, disclosed in a court
filing that his firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Daniel A. Velasquez, Esq.
Latham Luna Eden &Beaudine, LLP
201 S. Orange Ave., Suite 1400
Orlando, FL 32801
Tel: (407) 481-5800
Fax: (407) 481-5801
Email: dvelasquez@lathamluna.com
About Farmhouse Creative
Farmhouse Creative, LLC is a closely held Florida limited liability
company formed in 2019 for the purpose of acquiring and operating
the KidzArt Orlando franchise. KidzArt Orlando offers a unique art
enrichment program where children can learn to draw, learn about
art, and enhance their creativity.
Farmhouse Creative sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 23-00178) on Jan. 18,
2023. In the petition signed by its managing member, Dawn Farmer,
the Debtor disclosed up to $500,000 in both assets and
liabilities.
Judge Tiffany P. Geyer oversees the case.
Daniel A. Velasquez, Esq., at Latham Luna Eden and Beaudine LLP,
represents the Debtor as legal counsel.
FB DEBT: Court OKs Cash Collateral Access, $33MM DIP Loan
---------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware authorized
FB Debt Financing Guarantor, LLC and affiliates to, among other
things, use cash collateral and obtain postpetition financing, on a
final basis.
The Debtor obtained senior secured postpetition financing from
Jefferies Finance LLC, Cerberus Business Finance, LLC, and FB
Intermediate on a superpriority basis consisting of a superpriority
priming senior secured multiple draw term loan facility in an
aggregate principal amount not to exceed $33 million, of which
$16.2 million will be available upon entry of the Interim Order and
the remainder of which will be available upon entry of a final
order.
Jefferies Finance LLC is the administrative and collateral agent
for the DIP Lenders.
The Debtors began marketing substantially all of the Company's
assets prior to the filing of the Chapter 11 Cases with the support
of the Prepetition Lenders which agreed to provide, in addition to
several forbearances, $26.5 million of bridge term loans on a
secured basis. The Bridge Loans provided the Debtors with
additional liquidity to continue to fund their operations while the
Debtors marketed substantially all of their assets, negotiated a
sale of certain assets with AGREM BTY, LLC, and prepared the
Company for a smooth landing into chapter 11.
The Debtors subsequently entered into a stalking horse purchase
agreement that would allow the Debtors to continue marketing their
assets postpetition and secured $33 million from the DIP Lenders in
debtor in possession financing to fund the Chapter 11 Cases and
sale of the Company's assets.
The DIP Credit Facility contemplates milestones that the Debtors
must meet throughout their Chapter 11 Cases, the failure of which
would constitute an event of default under the DIP Credit
Agreement.
These milestones include:
i. the Debtors will have commenced the Chapter 11 Cases by
filing voluntary petitions under chapter 11 of the Bankruptcy Code
with the Court on or before January 12, 2023; and
ii. on or before January 10, 2023, the Stalking Horse
Purchaser and the Debtors will enter into, subject to the Court's
approval, the Stalking Horse Agreement.
On August 16, 2019, FB Debt Financing Guarantor, LLC (Parent
Debtor) and Morphe, LLC entered into the First Lien Credit
Agreement, among Morphe, as Borrower, the Parent Debtor, Forma
Brands, LLC, Jefferies, as Administrative Agent and Collateral
Agent, the lenders party thereto, and certain other parties
specified therein.
The Prepetition First Lien Credit Agreement currently provides for:
(a) a senior secured term loan credit facility in the aggregate
principal amount of $660 million; (b) a senior secured revolving
credit facility in the aggregate maximum committed principal amount
of $50 million; (c) a senior secured incremental term loan credit
facility in the aggregate principal amount of $14.75 million; and
(d) a first lien revolving credit facility in an aggregate
principal amount not to exceed $75 million.
As of the Petition Date, (a) $792 million in aggregate principal
amount and accrued interest and other fees remain outstanding on
the Prepetition Term Loans, Prepetition Incremental Term Loans and
(b) the Prepetition Issuer was indebted and liable to the
Prepetition Holder in the aggregate principal amount of $58.8
million, inclusive of accrued and unpaid interest, on account of
the Prepetition Secured Notes ((a) and (b), together with any
additional fees and expenses.
The Debtors have an immediate and critical need to use cash
collateral on an interim basis and to obtain credit on an interim
basis pursuant to the DIP Credit Facility in order to, among other
things, enable the orderly continuation of their operations.
As adequate protection of the interests of the Prepetition Secured
Parties in the Prepetition Collateral against any Diminution in
Value of such interests in the Prepetition Collateral, the
Prepetition Secured Parties are granted continuing valid, binding,
enforceable and perfected postpetition security interests in and
liens on the DIP Collateral; provided, that the Adequate Protection
Liens will be subject to the Carve-Out.
As further adequate protection of the interests of the Prepetition
Secured Parties in the Prepetition Collateral against any
Diminution in Value of such interests in the Prepetition
Collateral, Prepetition Secured Parties are granted as and to the
extent provided by section 507(b) of the Bankruptcy Code an allowed
superpriority administrative expense claim in each of the Cases and
any Successor Cases.
A copy of the order is available at https://bit.ly/417kuus from
PacerMonitor.com.
About FB Debt Financing Guarantor, LLC
FB Debt Financing Guarantor, LLC and affiliates are a builder of
beauty brands anchored in innovative and high-quality products,
marketing and operations. The Company's multi-branded and
multi-category portfolio includes Morphe, Morphe 2, Jaclyn
Cosmetics, and Born Dreamer. The Company's products are sold
through top beauty retailers worldwide, including Ulta Beauty,
Sephora, Mecca, Douglas, Selfridges, and Target.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 23-10025) on January 11,
2023.
In the petition signed by Stephen Marotta as chief restructuring
officer, the Debtor disclosed up to $1 billion in both assets and
liabilities.
Judge Karen B. Owens oversees the case.
The Debtors tapped Bayard, P.A. as Delaware counsel, Ropes and Gray
LLP as general bankruptcy counsel, Configure Partners, LLC as
investment banker, and Kroll, LLC a notice and claims agent.
FRANKIE'S COMICS: Wins Interim Cash Collateral Access
-----------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of North
Carolina in Raleigh authorized Frankie's Comics LLC to use cash
collateral on an interim basis in accordance with the budget.
The Debtor requires the use of cash collateral to make payment of
ordinary operating expenses.
Frankie's Comics started doing business as an online retailer of
comic books in 2015. In 2021, Frankie's Comics opened a
brick-and-mortar store in Apex, North Carolina. Sales declined as
the pandemic wore on in the end of 2021. Frankie's Comics took out
several high-interest loans, which burdened its ability to
operate.
The Debtor closed the brick-and-mortar store, but plans to re-open
the store in 2023. Frankie's Comics continues to run its online
comic sales business.
A review of the North Carolina Secretary of State's UCC filings
reveals the following financing statements which might perfect a
lien on cash collateral:
a. File # 20200061763J recorded May 26, 2020, in favor of U.S.
Small Business Administration, 2 North Street, Suite 320,
Birmingham, AL 35203;
b. File # 20220080891C recorded June 8, 2022, in favor of CHTD
Company, P.O. Box 2576, Springfield, IL 62708;
c. File # 20220097680H recorded June 14, 2022, in favor of
First Corporate Solutions, as representative, 914 S. Street,
Sacramento, CA 95811;
d. File # 20220122362C recorded September 6, 2022, in favor of
Corporation Service Company as representative, P.O. Box 2576.
Springfield, IL 62708;
e. File # 20220145062F recorded October 26, 2022, in favor of
CT Corporation System, as representative, 330 N. Brand Blvd., Suite
700: ATTN: SPRS, Glendale, CA 90210; and
f. File # 20220153194M recorded on November 15, 2022, in favor
of Corporation Service Company as representative, P.O. Box 2576.
Springfield, IL 62708.
As adequate protection, and to the extent that cash collateral is
used, the Potential Secured Creditors will receive a post-petition
lien on the Debtor's cash and inventory to the extent of the use
and to the extent that the pre-petition lien in the same type of
collateral was valid, perfected, enforceable, and non-avoidable as
of the petition date.
The Debtor's use of cash collateral will expire or terminate on the
earlier of: (i) the Debtor ceasing operations of its business; or
(ii) the non-compliance or default of the Debtor with any terms and
provisions of the Order.
A further hearing on the matter is set for March 14, 2023 at 9:30
a.m.
A copy of the order and the Debtor's budget is available at
https://bit.ly/3XLBpzI from PacerMonitor.com.
The Debtor projects $97,000 in total income and $104,149 in total
expenses for the period from February 14 to March 15, 2023.
About Frankie's Comics, LLC
Frankie's Comics, LLC is a comic book store in Apex, North
Carolina. The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.C. Case No. 22-02892) on December 14,
2022. In the petition signed by Kevin Fields, owner/manager, the
Debtor disclosed up to $10 million in both assets and liabilities.
Judge Joseph N. Callaway oversees the case.
William P. Janvier, Esq., at Stevens Martin Vaughn & Tadych, PLLC,
represents the Debtor as legal counsel.
FUSE GROUP: Incurs $122K Net Loss in First Quarter
--------------------------------------------------
Fuse Group Holding Inc. has filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $121,879 on zero revenue for the three months ended Dec. 31,
2022, compared to a net income of $5,904 on $200,000 of revenue for
the three months ended Dec. 31, 2021.
As of Dec. 31, 2022, the Company had $130,069 in total assets,
$671,670 in total liabilities, and a total stockholders' deficit of
$541,601.
Fuse Group stated, "If we are not successful in developing the
mining business and establishing profitability and positive cash
flow, additional capital may be required to maintain ongoing
operations. We have explored and continue to explore options to
provide additional financing to fund future operations as well as
other possible courses of action. Such actions may include, but
are not limited to, securing lines of credit, sales of debt or
equity securities (which may result in dilution to existing
shareholders), loans and cash advances from other third parties or
banks, and other similar actions. There can be no assurance we
will be able to obtain additional funding (if needed), on
acceptable terms or at all, through a sale of our common stock,
loans from financial institutions, or other third parties, or any
of the actions discussed above. If we cannot sustain profitable
operations, and additional capital is unavailable, lack of
liquidity could have a material adverse effect on our business
viability, financial position, results of operations and cash
flows."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1636051/000118518523000134/fusegroup20221231_10q.htm
About Fuse Group
Headquartered in Arcadia, CA, Fuse Group Holding Inc. currently
explores opportunities in mining. On Dec. 6, 2016, the Company
incorporated Fuse Processing, Inc. in the State of California.
Processing seeks business opportunities in mining and is currently
investigating potential mining targets in Asia and North America.
Fuse Group is the sole shareholder of Processing.
Fuse Group reported a net loss of $444,492 for the year ended Sept.
30, 2022, compared to a net loss of $1.02 million for the year
ended Sept. 30, 2021. As of Sept. 30, 2022, the Company had
$106,125 in total assets, $525,847 in total liabilities, and a
total stockholders' deficit of $419,722.
Diamond Bar, California-based KCCW Accountancy Corp., the Company's
auditor since 2022, issued a "going concern" qualification in its
report dated Dec. 28, 2022, citing that as of Sept. 30, 2022, the
Company had recurring losses from operations, an accumulated
deficit, and a negative cash flows from operating activities. As
such there is substantial doubt about its ability to continue as a
going concern.
G.A.H. BAR-B-Q: Court OKs Cash Collateral Access Thru March 15
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida,
Orlando Division, authorized G.A.H. Bar-BQ, Inc. to use cash
collateral on an interim basis in accordance with the budget,
through March 15, 2023.
The Debtor is permitted to use cash collateral to pay:
(a) amounts expressly authorized by the Court, including
payments to the Subchapter V Trustee and payroll obligations
incurred post-petition in the ordinary course of business;
(b) the current and necessary expenses set forth in the
budget, plus an amount not to exceed 10% for each line item; and
(c) additional amounts as may be expressly approved in writing
by Florida Business Bank.
As adequate protection, the Secured Creditors will have a perfected
post-petition lien against cash collateral to the same extent and
with the same validity and priority as the prepetition lien,
without the need to file or execute any documents as may otherwise
be required under applicable non-bankruptcy law.
The Debtor will maintain insurance coverage for its property in
accordance with the obligations under all applicable loan and
security documents.
A continued preliminary hearing on the matter is set for March 15
at 10 a.m.
A copy of the Court's order and the Debtor's budget is available at
https://bit.ly/3Eml9hM from PacerMonitor.com.
The Debtor projects total expenses, on a weekly basis, as follows:
$23,006 for the week February 6, 2023;
$23,006 for the week February 13, 2023;
$23,006 for the week February 20, 2023;
$23,006 for the week February 27, 2023;
$36,006 for the week March 6, 2023; and
$24,006 for the week March 13, 2023.
About G.A.H. Bar-B-Q, Inc.
G.A.H. Bar-B-Q, Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 23-00428) on February 3,
2023. In the petition signed by Gregory Helwig, sole shareholder,
the Debtor disclosed up to $10 million in assets and up to $500,000
in liabilities.
Judge Tiffany P. Geyer oversees the case.
Daniel A. Velasquez, Esq., at Latham Luna Eden and Beaudine LLP,
represents the Debtor as legal counsel.
GALAXY NEXT: Incurs $2.9 Million Net Loss in Second Quarter
-----------------------------------------------------------
Galaxy Next Generation, Inc. has filed with the Securities and
Exchange Commission its Quarterly Report on Form 10-Q disclosing
a net loss of $2.93 million on $429,031 of revenues for the three
months ended Dec. 31, 2022, compared to a net loss of $2.46 million
on $904,055 of revenues for the three months ended Dec. 31, 2021.
For the six months ended Dec. 31, 2022, the Company reported a net
loss of $4.48 million on $1.05 million of revenues compared to a
net loss of $2.85 million on $2.59 million of revenues for the same
period during the prior year.
As of Dec. 31, 2022, the Company had $4.76 million in total assets,
$9.73 million in total liabilities, and a total stockholders'
deficit of $4.97 million.
Galaxy Next stated, "To date our revenues generated from operations
have been insufficient to support our operational activities and
have been supplemented by the proceeds from the issuance of
securities, including equity and debt issuances. In order to
support our operational activities our revenues still need to be
supplemented by the proceeds from the issuance of securities,
including equity and debt issuances. At December 31, 2022, we had
a working capital deficit of approximately $6,500,000 and an
accumulated deficit of approximately $58,700,000. As stated in
Note 13 to the notes to the unaudited condensed consolidated
financial statements included in this Report, our ability to
continue as a going concern is dependent upon management's ability
to raise capital from the sale of its equity and, ultimately, the
achievement of sufficient operating revenues. If our revenues
continue to be insufficient to support our operational activities,
we intend to raise additional capital through the sale of equity
securities or borrowings from financial institutions and possibly
from related and nonrelated parties who may in fact lend to us on
reasonable terms and ultimately generating sufficient revenue from
operations. Our operating loss continues to shrink, and
investments should allow us to continue for several months until
sufficient revenue is met. Management believes that its actions to
secure additional funding will allow us to continue as a going
concern. We currently do not have any committed sources of
financing other than our accounts receivable factoring agreement
and small lines of credit, which requires us to meet certain
requirements to utilize. There can be no assurance that we will
meet all or any of the requirements pursuant to our line of credit,
or accounts receivable factoring agreement, and therefore those
financing options may be unavailable to us. The Equity Purchase
Agreement that we entered into November 2022 also has several
conditions that we must meet before ClearThink Capital Partners,
LLC is required to purchase shares of our common stock and there
can be no assurance that we will meet those conditions. There is
no guarantee we will be successful in raising capital outside of
our current sources, and if so, that we will be able to do so on
favorable terms."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/Archives/edgar/data/1127993/000109181823000020/gaxy02132310qdec22.htm
About Galaxy Next Generation
Headquartered in Toccoa, Georgia, Galaxy Next Generation, Inc. --
http://www.galaxynext.us-- is a manufacturer and distributor of
interactive learning technologies and enhanced audio solutions. It
develops both hardware and software that allows the presenter and
participant to engage in a fully collaborative instructional
environment.
Galaxy Next reported a net loss of $6.25 million for the year ended
June 30, 2022, compared to a net loss of $24.43 million for the
year ended June 30, 2021. As of Sept. 30, 2022, the Company had
$4.64 million in total assets, $7.88 million in total liabilities,
and a total stockholders' deficit of $3.25 million.
Indianapolis, Indiana-based Somerset CPAs PC, the Company's auditor
since 2018, issued a "going concern" qualification in its report
dated Sept. 23, 2022, citing that the Company has suffered
recurring losses from operations, recurring negative operating cash
flows and has a net capital deficiency that raises substantial
doubt about its ability to continue as a going concern.
GENESISCARE USA: EUR500M Bank Debt Trades at 71% Discount
---------------------------------------------------------
Participations in a syndicated loan under which Genesiscare USA
Holdings Inc is a borrower were trading in the secondary market
around 28.8 cents-on-the-dollar during the week ended Friday,
February 17, 2023, according to Bloomberg's Evaluated Pricing
service data.
The EUR500 million facility is a Term loan that is scheduled to
mature on May 17, 2027. The amount is fully drawn and
outstanding.
Genesiscare USA Holdings Inc operates as a holding company. The
Company, through its subsidiaries, provides breast and colorectal
surgery, gynecology, pathology, pulmonology, radiology, urology,
radiation therapy, and other cancer treatments.
GOLDEN KEY: Court OKs Interim Cash Collateral Access
----------------------------------------------------
The U.S. Bankruptcy Court for the District of Maryland, Greenbelt
Division, authorized Golden Key Group, LLC to use the cash
collateral of Associated Receivables Funding, Inc.'s cash
collateral on an interim basis to pay operating expenses for the
period from February 16 through April 17, 2023.
The Debtor is permitted to use cash collateral for these purposes:
(a) maintenance and preservation of its assets;
(b) the continued operation of its businesses by payment of
its actual expenses including, but not limited to, ordinary and
necessary overhead expenses, taxes, insurance, utilities, payroll,
and other routine and necessary vendors and other expenses as
reflected in the Budget; and
(c) payment of fees owed to the Office of the United States
Trustee.
As adequate protection, AR Funding is granted replacement liens
upon and security interests in all of the properties and assets of
the Debtor: (i) only to the extent the AR Funding's cash collateral
is used by the Debtor and such use results in a diminution of the
value of its cash collateral; and (ii) with the same perfection and
priority in the postpetition collateral and proceeds thereof of the
Debtor that AR Funding held in the prepetition collateral as of the
Petition Date; provided, however, that the collateral will
expressly exclude litigation claims or other cause of action of the
estate.
Any replacement liens will at all times be subordinate to the
payment of the quarterly fees paid to the United State Trustee
pursuant to 28 U.S.C. section 1930, and to the compensation and
expense reimbursement (excluding professional fees) allowed to any
trustee hereafter appointed in the case.
The security interests granted by the Debtor in favor of AR Funding
will be deemed perfected without the necessity for the filing or
execution of documents which otherwise might be required under
non-bankruptcy law for the perfection of security interests if AR
Funding's security interests were perfected under applicable state
law before the bankruptcy filing.
In the event and to the extent that AR Funding's interest in the
Collateral is diminished as a result of the Debtor's use of the
cash collateral during the Second Interim Period, AR Funding will
be granted an administrative claim against the Debtor's bankruptcy
estate.
These events constitute an "Event of Default":
(a) Any default, violation or breach of any of the terms of
the order, including the failure of the Debtor to use the cash
collateral in strict compliance with the Order and Budget attached
thereto;
(b) The failure of the Debtor to file timely monthly operating
reports in the Bankruptcy Case;
(c) Conversion of the Case to a case under Chapter 7 of the
Bankruptcy Code;
(d) The appointment of a Chapter 11 trustee in the Case;
(e) The appointment of an examiner in the Case;
(f) The dismissal of the Case; or
(g) the discontinuation of the Debtor's business or the
issuance of an Order for the Debtor to discontinue its business.
A copy of the court's order and the Debtor's budget is available at
https://bit.ly/3xBYSsG from PacerMonitor.com.
The Debtor projects total cash outflow, on a monthly basis, as
follows:
$5,647,762 for February 2023;
$2,865,162 for March 2023; and
$3,214,198 for April 2023.
About Golden Key Group, LLC
Golden Key Group, LLC is a professional services firm dedicated to
helping federal and commercial clients solve today's strategic,
organizational and operational challenges while addressing their
future needs. Founded in 2002, Golden Key Group's solution
offerings include Human Capital Management Support, Human Resources
Operations, Employee Training and Leadership Development,
Professional Consulting Services, Program Management Office,
Acquisition and Category Management, Analytics and Information
Technology, Executive Search Services, and Select Solutions.
The Debtor sought protection under U.S. Bankruptcy Code (Bankr. D.
Md. Case No. 23-10414) on January 20, 2023. In the petition signed
by Gretchen McCracken as CEO and managing member, the Debtor
disclosed up to $10 million in assets and up to $50 million in
liabilities.
Judge Maria Elena Chavez-Ruark oversees the case.
Paul Sweeney, Esq., at Yumkas, Vidmar, Sweeney and Mulrenin, LLC,
represents the Debtor as legal counsel.
GREEN ENVIRONMENTAL: Voluntary Chapter 11 Case Summary
------------------------------------------------------
Debtor: Green Environmental Processing, Inc.
100 West Washington Avenue
Newton, IN 47969
Business Description: The Debtor is engaged in the business of
rubber product manufacturing.
Chapter 11 Petition Date: February 17, 2023
Court: United States Bankruptcy Court
Southern District of Indiana
Case No.: 23-00558
Debtor's Counsel: Preeti Gupta, Esq.
PREETI (NITA) GUPTA, ATTORNEY
2680 East Main Street Ste 322
Plainfield, IN 46168
Tel: 317-900-9737
Email: nita07@att.net
Estimated Assets: $100 million to $500 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Clifford Garrett as president.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/3ITO4EQ/Green_Environmental_Processing__insbke-23-00558__0001.0.pdf?mcid=tGE4TAMA
GREENBRIER COS: S&P Alters Outlook to Negative, Affirms 'BB-' ICR
-----------------------------------------------------------------
S&P Global Ratings revised its outlook on Lake Oswego, Ore.-based
The Greenbrier Cos. Inc. to negative from stable and affirmed its
'BB-' issuer credit rating.
The negative outlook reflects the risk that continued supply chain
constraints or fewer orders could keep leverage above 5x and
operating cash flow (OCF) to debt below 10%.
Recent supply chain disruptions and operational inefficiencies are
weighing on the company's EBITDA margins despite a ramp-up in
production. Greenbrier's revenues increased nearly 70% over the
last 12 months ended Nov. 30, 2022, compared to the prior 12
months, as the economy rebounded from the worst of the COVID-19
pandemic. However, the company did not enjoy the benefit of
operating leverage on higher volumes primarily due to various
supply chain issues. Thus, its S&P Global Ratings-adjusted EBITDA
margin declined to 7% from 8.9% a year prior. Greenbrier
encountered higher costs for outsourced components, material
shortages and delays, and rail congestion at its operating
facilities in Mexico. In the first fiscal quarter of 2023, it also
produced railcars for syndication, which were not yet recognized in
revenue. This cost temporarily weighed on margins in the quarter.
To improve operating efficiency, Greenbrier is investing capital in
internal fabrication facilities in Mexico. In addition, Greenbrier
will cease railcar production in its Portland, Ore., facility in
May, which could come with near-term costs but improve margins over
the long run. We expect supply chain constraints will gradually
ease, such that EBITDA margins improve roughly 100 basis points
(bps) annually in 2023 and 2024.
OCF has been pressured as the company ramped up railcar production.
Greenbrier's S&P Global Ratings-adjusted debt rose significantly in
fiscal 2022 and the first quarter of 2023 as it increased working
capital to support higher production and funded leasing capital
expenditure. S&P expects working capital requirements to decline as
revenue growth moderates and the company to generate about $150
million of OCF in 2023, which along with about 30% EBITDA growth
will enable leverage to decline to the 4x-5x area.
S&P said, "We expect the railcar manufacturing industry to remain
relatively resilient over the next 12-18 months, but nonetheless
see a risk of softer demand as the economy cools. Greenbrier's
railcar end market remains highly cyclical, largely driven by
macroeconomic activity across a breadth of industrial markets. We
expect fiscal 2023 revenue will increase moderately as the company
delivers on a solid backlog of orders, most of which are scheduled
for delivery in 2023. The backlog remained relatively stable at
$3.4 billion as of the first quarter compared to $3.5 billion in
the fiscal year ended Aug. 31, both well above the $2.8 billion
backlog reported in 2021. However, we see a risk that a mild
recession in U.S. and Europe, Greenbrier's primary geographic
markets, will dampen order activity, potentially pressuring
revenues in fiscal 2024. We believe reduced new railcar demand will
not be severe, as North American railcars in storage are low and
environmental considerations spur sustained demand for railcars in
Europe.
"We expect the company's leasing business will continue to expand
and that its more stable profits should gradually provide a partial
offset to the highly cyclical railcar manufacturing business.
Greenbrier continues to expand its leasing fleet, which has grown
to 14,100 units as of Nov. 30 but remains fairly small compared to
larger leasing competitors. We expect the company will spend $200
million-$250 million annually on expanding its lease fleet
(excluding proceeds from sales of leased railcars) and continue to
leverage its lease fleet at a 3 to 1 debt-to-equity ratio. We
believe leasing revenues will steadily increase over the next two
years, driven by a solid fleet utilization and higher lease
rates."
The negative outlook on Greenbrier reflects the risk that continued
supply chain disruptions or weaker demand for new railcars will
prevent the company from reducing its S&P Global Ratings-adjusted
leverage below 5x and increasing its OCF to debt above 10% over the
next 12 months.
S&P could lower its rating on Greenbrier if:
-- S&P expects its S&P Global Ratings-adjusted debt to EBITDA to
remain above 5x. This could occur if the company continues to face
supply chain challenges in its manufacturing segment or order
activity declines over the next few quarters, which would pressure
operating performance;
-- S&P expects OCF to debt will remain below 10%; or
-- The company's liquidity position (including cash and revolver
availability) deteriorates.
S&P could revise its outlook on Greenbrier to stable if:
-- It reduces leverage below 5x and S&P believes it will maintain
it throughout the railcar cycle;
-- S&P expects OCF to debt will rise to 10% or more; and
-- The company maintains adequate liquidity.
ESG credit indicators: E-2; S-2; G-2
S&P said, "ESG factors are an overall neutral consideration in our
credit rating analysis of Greenbrier. We believe freight rail has a
lower-emission profile than heavy-duty trucking, a competitive mode
of transport. At the same time, the company is one of the
potentially responsible parties in an environmental investigation
and clean-up near its Portland property, though we believe it will
incur potential cost of remediation over time with no meaningful
effect on credit measures."
GREENHEART NY: Seeks to Hire Kamini Fox as Legal Counsel
--------------------------------------------------------
Greenheart NY, Inc. seeks approval from the U.S. Bankruptcy Court
for the Southern District of New York to employ Kamini Fox, PLLC as
its legal counsel.
The firm's services include:
(a) representing the Debtor in all aspects of its Subchapter V
Chapter 11 case;
(b) preparing and filing bankruptcy schedules and documents
relating thereto;
(c) preparing and filing legal documents in connection with the
administration of the Debtor's estate;
(d) advising the Debtor of its responsibilities and duties in
the continued management and operation of its financial affairs and
ensuring it complies with its responsibilities;
(e) appearing at meetings before the bankruptcy court, any
appellate courts, and the U.S. trustee;
(f) representing the Debtor in actions to protect and preserve
its estate, including the prosecution of actions on its behalf, the
defense of any actions commenced against the estate, negotiations
concerning all litigation in which the Debtor may be involved and
objections to claims filed against the estate;
(g) assisting the Debtor in formulating and negotiating a plan
of reorganization; and
(h) other necessary legal services.
Kamini Fox will be paid based upon its normal and usual hourly
billing rates and will be reimbursed for out-of-pocket expenses
incurred.
The firm received from the Debtor a retainer of $20,000.
As disclosed in court filings, Kamini Fox is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Kamini Fox, Esq.
Kamini Fox, PLLC
825 East Gate Blvd., Suite 308
Garden City, NY 11530
Tel: (516) 493-9920
Email: kamini@kfoxlaw.com
About Greenheart NY
Greenheart NY, Inc. filed a Chapter 11 bankruptcy petition (Bankr.
S.D.N.Y. Case No. 23-10091) on Jan. 25, 2023, with as much as $1
million in both assets and liabilities. Judge Michael E. Wiles
oversees the case.
The Debtor is represented by Kamini Fox, Esq., at Kamini Fox, PLLC.
GREENWAY HEALTH: S&P Downgrades ICR to 'CCC', Outlook Negative
--------------------------------------------------------------
S&P Global Ratings lowered to 'CCC' from 'CCC+' its issuer credit
rating on Tampa-based health care software provider Greenway Health
LLC and its issue-level rating on its first-lien term loan.
The negative rating outlook on Greenway Health LLC indicates the
risk of restructuring or a distressed exchange occurring sooner
than the term loan maturity, which we could consider a default.
The lower rating on Greenway reflects the nearing maturity of the
term loan, which increases the refinancing risk and risk of a
default within the next 12 months. S&P said, "We believe that this
leaves the company dependent on near-term favorable business,
financial, and economic conditions to successfully refinance its
debt and meet its obligations. We think this will depend on
Greenway's ability to expand its customer base, manage expenses
tightly, and see favorable interest rate changes and debt market
access in 2023 ahead of its early 2024 maturity."
This comes at a time when base rates are at the highest levels in
about 15 years and credit markets are less accommodating. S&P said,
"We continue to expect improved operating results in 2023 as
restructuring and one-time expenses decrease, but the timing of the
measurable improvement is expected in the second half of fiscal
2023, making it likely the refinancing will not take place before
mid-year 2023, if at all. We believe the debt coming due within 12
months heightens default risk."
S&P said, "We think the company could pursue a restructuring or
exchange over the next 12 months, which we could consider a default
if we believed that the transaction implied the investor would
receive less value than promised when the original debt was
issued.
"We continue to believe that even if the company is able to
refinance its debt, the likely increase in spread will pressure
cash flows, given our base case expectations for operating
results.In 2023, we expect flattish revenue growth and strong
adjusted EBITDA expansion of about $25 million higher than 2022, a
result of the recent completion of several projects that should
reduce expenses significantly. We think that the company will be
subject to a higher interest margin when it refinances based on
market conditions and the business outlook relative to when the
current debt was issued. Despite the expected operating
improvement, we think the higher interest expense will result in a
free cash flow deficit of about $10 million in 2023 and a
low-single-digit deficit in 2024.
"Greenway missed our expectations in 2022, and we continue to see
elevated risk to our base case in 2023, despite the completion of
several discrete projects.The company's adjusted EBITDA was over
$15 million lower than our expectations in 2022 due to about $10
million in higher restructuring and one-time expenses and
lower-than-expected revenue (including the reserve related to the
revenue cycle management business), resulting in extremely high
adjusted debt to EBITDA of about 19x. This was likely due to the
company's rush to complete projects, including standing up business
functions in India, complying with the 21st Century Cures Act, and
updating to Intergy.
"Following this underperformance in 2022, we think restructuring
expenses and investment in sales and marketing could exceed our
expectations and revenue growth could be weaker than expected,
creating risk to our base case of 10x adjusted debt to EBITDA in
2023. Although the company reported sequentially stable revenue in
2022, we believe it will face challenges acquiring new customers
due to the lingering reputational damage related to the 2019
settlement with the U.S. Department of Justice.
"In addition, we think the company's gross attrition rate could
exceed expectations of about 5% due to an increasingly competitive
market for electronic health records and revenue cycle management
services. Greenway is likely behind its competitors in investing in
product enhancements due to its required remediations as part of
the Department of Justice settlement. The rating and negative
outlook reflect the confluence of operating risks, which add
uncertainty to the company's prospects of refinancing in the next
12 months."
The negative outlook reflects the risk that the company will pursue
a restructuring or distressed exchange ahead of the 2024 maturity
or that the debt comes due within six months.
S&P said, "We could lower the rating if a default, distressed
exchange, or redemption appeared to be inevitable within six
months, absent unanticipated significantly favorable changes in the
issuer's circumstances.
"We could revise the outlook to stable or consider a higher rating
if Greenway successfully refinanced its term loan, and we believed
that the company would have adequate liquidity over the next 12
months."
ESG credit indicators: E-2, S-2, G-3
S&P said, "Governance factors are a moderately negative
consideration in our credit rating analysis. Our assessment of the
company's financial risk profile as highly leveraged reflects
corporate decision-making that prioritizes the interests of the
controlling owners, in line with our view of the majority of rated
entities owned by private-equity sponsors. Our assessment also
reflects the generally finite holding periods and a focus on
maximizing shareholder returns.
"Our governance assessment also reflects the company's $57.25
million of payments in 2019 and 2020 to resolve the Justice
Department's allegations under the False Claims Act and a $26
million payment in 2022 to settle related class action claims. The
allegations included claims that the company misrepresented its
capabilities in acquiring its Health and Human Services
certification. Greenway has a new management team since the
settlement and has spent significant capital to bring its products
into compliance. We think the allegations and subsequent settlement
have worsened the company's credit risk from the cash payments,
increased operating expenses, and reputational damage."
GREER TRANSPORT: Gets OK to Hire Richard A. Perry as Legal Counsel
------------------------------------------------------------------
Greer Transport, LLC received approval from the U.S. Bankruptcy
Court for the Middle District of Florida to employ Richard A.
Perry, P.A. to serve as legal counsel in its Chapter 11 case.
The firm will be paid based upon its normal and usual hourly
billing rates and will be reimbursed for out-of-pocket expenses
incurred.
The Debtor paid the firm a retainer of $11,717.
As disclosed in court filings, the firm's attorney and employees
neither hold nor represent any interest adverse to the Debtor's
estate.
The firm can be reached through:
Richard A. Perry, Esq.
Richard A. Perry, P.A.
820 East Fort King Street
Ocala, FL 34471-2320
Tel: 352-732-2299
Email: richard@rapocala.com
About Greer Transport
Greer Transport, LLC is a family-owned and operated trucking
company in Ocala, Fla.
Greer Transport filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. M.D. Fla. Case No. 23-00124) on Jan.
20. 2023, with $437,242 in assets and $1,696,803 in liabilities.
Aaron R. Cohen has been appointed as Subchapter V trustee.
Judge Jacob A. Brown presides over the case.
Richard A. Perry, Esq., at Richard A. Perry, P.A. represents the
Debtor as counsel.
GROM SOCIAL: Lind Global Has 9.9% Stake as of Dec. 31
-----------------------------------------------------
In a Schedule 13G filed with the Securities and Exchange
Commission, Lind Global Fund II LP disclosed that as of Dec. 31,
2022, it beneficially owns 240,088 shares of common stock of Grom
Social Enterprises Inc., representing 9.9% of the shares
outstanding.
A full-text copy of the regulatory filing is available for free
at:
https://tinyurl.com/78vsmmz5
About Grom Social Enterprises Inc.
Boca Raton, Florida-based Grom Social Enterprises, Inc. --
http://www.gromsocial.com-- is a media, technology and
entertainment company focused on delivering content to children
under the age of 13 years in a safe secure Children's Online
Privacy Protection Act ("COPPA") compliant platform that can be
monitored by parents or guardians.
As of Sept. 30, 2022, the Company had $33.10 million in total
assets, $9.11 million in total liabilities, and $23.99 million in
total stockholders' equity.
In its September 2022 quarterly report, Grom Social said, "We
believe that based on our current operating levels that we will
need to raise additional funds by selling additional equity or
incurring debt. To date, we have funded our operations primarily
through sales of our common stock in public markets and proceeds
from the exercise of warrants to purchase common stock and the sale
of convertible notes. We have a substantial doubt about the our
ability to continue as a going concern for the twelve months from
the date of this report.
"Our management intends to raise additional funds through the
issuance of equity securities or debt. There can be no assurance
that, in the event that we require additional financing, such
financing will be available at terms acceptable to us, if at all.
Failure to generate sufficient cash flows from operations, raise
additional capital and reduce discretionary spending could have a
material adverse effect on our ability to achieve our intended
business objectives. As a result, the substantial doubt about our
ability to continue as a going concern has not been alleviated."
GROW GLIDE: Public Auction Set for February 23
----------------------------------------------
As a result of Grow Glide Inc.'s loan default, as made known via
letters delivered by lender, Besopoke Financial, the assets
securing the loan will be sold by public auction on Feb. 23, 2023,
at 10:00 a.m. (CT) in accordance with Section 9-611 of the
California Uniform Commercial Code. Complete going concern
business to be sold in one bulk lot via public auction including:
cannabis grow system IP, inventory, material handling equipment and
office assets. Further information on the public auction contact:
Barrett Arthur
PPL Group
Tel: 224-927-5318
Email: barret@pplgrouplllc.com
Grow Glide Inc. designs and builds vertical racking systems for
cannabis cultivators.
GTT COMMUNICATIONS: $350M Bank Debt Trades at 40% Discount
----------------------------------------------------------
Participations in a syndicated loan under which GTT Communications
Inc is a borrower were trading in the secondary market around 60.2
cents-on-the-dollar during the week ended Friday, February 17,
2023, according to Bloomberg's Evaluated Pricing service data.
The $350 million facility is a Payment-in-Kind Term loan that is
scheduled to mature on June 30, 2028. The amount is fully drawn
and outstanding.
GTT Communications, Inc., formerly Global Telecom and Technology,
is a multinational telecommunications and internet service provider
company with headquarters in McLean, Virginia, and incorporated in
Delaware.
GUITAR CENTER: Moody's Cuts CFR to B3 & Sr. Secured Notes to Caa1
-----------------------------------------------------------------
Moody's Investors Service downgraded Guitar Center Inc. (NEW)'s
corporate family rating to B3 from B2, its probability of default
rating to B3-PD from B2-PD and its senior secured note rating to
Caa1 from B3. The outlook remains stable.
The downgrades reflect Moody's expectation that interest coverage
will continue to be weak at approximately 0.9x at the end of fiscal
2023 and recovering to 1.2x in fiscal 2024 as demand for musical
instrument merchandise reverts toward pre-pandemic levels. Moody's
also expects gross margins to be pressured as the company reduces
excess inventory during 2023 and 2024.
Downgrades:
Issuer: Guitar Center Inc. (NEW)
Corporate Family Rating, Downgraded to B3 from B2
Probability of Default Rating, Downgraded to B3-PD from B2-PD
Senior Secured Notes, Downgraded to Caa1 (LGD4) from B3 (LGD4)
Outlook Actions:
Issuer: Guitar Center Inc. (NEW)
Outlook, Remains Stable
RATINGS RATIONALE
Guitar Center's B3 CFR reflects the company's weak interest
coverage and Moody's expectation that business conditions will
remain challenging. Moody's projects that lease-adjusted
EBIT-to-interest coverage of 1.65x as of LTM Q3 2022 will fall to
about 0.9x by the end of 2023 and recover to only about 1.2x by
2024. On an EBITA basis, which strips out intangible asset
amortization primarily related to fresh start accounting, Moody's
projects interest coverage remains above 1x for 2023 and 2024.
Moody's expects gross margin pressure as inventory normalizes,
while free cash flow generation will be dependent on working
capital benefits. However, the evergreen nature of musical
instrument products which typically have long product cycles, ample
warehousing capacity, and manufacturers' minimum advertised pricing
which limits price competition amongst retailers support the
company's ability to adjust inventories at a measured pace. While
smaller in scale than merchandise sales, revenue from services such
as rentals, lessons, and repairs will help offset some of the
margin pressure on the merchandise side of the business. Lessons
and concert band categories, for example, are expected to grow as
students are back to in-person schooling.
Guitar Center's B3 CFR is also constrained by governance
considerations, including its ownership by private equity sponsors
and former creditors. Governance is always a key concern for
privately-owned companies given the potential for higher leverage,
extractions of cash flow via dividends or more aggressive growth
strategies. In addition, the credit profile incorporates the
discretionary nature of demand for musical instruments sales and
rentals and the intense competition in the category, including from
online and used instrument marketplaces.
Guitar Center's B3 CFR is supported by moderate leverage which
Moody's expects to remain in the 4x range going forward as well as
good liquidity, including Moody's expectation for positive free
cash flow driven by the rightsizing of inventory. Moody's expects
free cash flow to be used to pay down borrowings under the
company's $375 million asset based revolving credit facility
("ABL"). The company's liquidity profile is also supported by
well-laddered maturities with the $375 million ABL expiring in
December 2025 and the $550 million senior notes maturing in January
2026.
The stable outlook reflects Moody's expectation for good liquidity
over the next 12-18 months and positive free cash flow, driven by
inventory rightsizing. Moody's expects free cash flow will be used
to pay down borrowings under the company's ABL.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be downgraded if liquidity weakens for any
reason, including if the company does not return to meaningfully
positive free cash flow as inventory is rightsized. The ratings
could also be downgraded if earnings decline or the company
undertakes aggressive financial strategy actions. Quantitatively,
the ratings could be downgraded if debt/EBITDA is maintained above
6.5x or EBITA/interest expense is maintained below 1.0x.
The ratings could be upgraded if earnings grow beyond Moody's
expectations and at least good liquidity is maintained, including
consistent and solid positive free cash flow and ample revolver
availability. Quantitatively, the ratings could be upgraded if
debt/EBITDA is maintained below 5.5x and EBITA/interest expense is
maintained above 1.75x.
Guitar Center, Inc. is the largest retailer of musical instruments
and related products and services in the US. The company operates
554 stores under the Guitar Center and Music & Arts brands, has a
growing audio visual professional services business and is the only
large-scale retailer in the category with omnichannel capability.
Guitar Center is controlled by funds affiliated with Ares Capital
Management, Brigade Capital Management and The Carlyle Group
following its bankruptcy emergence in December 2020. Revenue for
the LTM period ended October 29, 2022 was approximately $2.6
billion.
The principal methodology used in these ratings was Retail
published in November 2021.
GULFSLOPE ENERGY: Incurs $364K Net Loss in First Quarter
--------------------------------------------------------
Gulfslope Energy, Inc. has filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $364,366 on $0 of revenues for the three months ended Dec. 31,
2022, compared to a net loss of $504,884 on $0 of revenues for the
three months ended Dec. 31, 2021.
As of Dec. 31, 2022, the Company had $5.40 million in total assets,
$14.28 million in total liabilities, and a total stockholders'
deficit of $8.88 million.
Gulfslope stated, "The Company has incurred accumulated losses for
the period from inception to December 31, 2022, of approximately
$69.3 million, and has a negative working capital of $14.2 million.
For the three months ended December 31, 2022, the Company has
generated losses of approximately $0.4 million and net cash used in
operations of approximately $0.1 million. As of December 31, 2022,
there was $0.06 million of cash on hand. The Company estimates
that it will need to raise a minimum of $10 million to meet its
obligations and planned expenditures through February 2024. The
$10 million is comprised primarily of capital project expenditures
as well as general and administrative expenses. It does not
include any amounts due under outstanding debt obligations and
accrued interest, which amounted to approximately $12.6 million as
of December 31, 2022. The Company plans to finance operations and
planned expenditures through the issuance of equity securities,
debt financings, farm-out agreements, mergers or other
transactions. Our policy has been to periodically raise funds
through the sale of equity on a limited basis, to avoid undue
dilution while at the early stages of execution of our business
plan. Short term needs have been historically funded through loans
from executive management. There are no assurances that financing
will be available with acceptable terms, if at all. If the Company
is not successful in obtaining financing, operations would need to
be curtailed or ceased.
"The Company will need to raise additional funds to cover planned
expenditures, as well as any additional, unexpected expenditures
that we may encounter. Future equity financings may be dilutive to
our stockholders. Alternative forms of future financings may
include preferences or rights superior to our common stock. Debt
financings may involve a pledge of assets and will rank senior to
our common stock. We have historically financed our operations
through private equity and debt financings. We do not have any
credit or equity facilities available with financial institutions,
stockholders or third-party investors, and will continue to rely on
best efforts financings. The failure to raise sufficient capital
could cause us to cease operations, or the Company would need to
sell assets or consider alternative plans up to and including
restructuring."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1341726/000138713123002051/gspe-10q_123122.htm
About Gulfslope
Headquartered in Houston, Texas, Gulfslope Energy, Inc. --
http://www.gulfslope.com-- is an independent crude oil and natural
gas exploration and production company whose interests are
concentrated in the United States Gulf of Mexico federal waters.
GulfSlope Energy commenced commercial operations in March 2013.
Gulfslope Energy, Inc. reported a net loss of $8.70 million on $0
of revenues for the year ended Sept. 30, 2022, compared to a net
loss of $2.23 million on $0 of revenues for the year ended Sept.
30, 2021, according to the Company's Form 10-K filed with the
Securities and Exchange Commission. As of Sept. 30, 2022, the
Company had $5.47 million in total assets, $13.99 million in total
liabilities, and a total stockholders' deficit of $8.52 million.
Houston, Texas-based Pannell Kerr Forster of Texas, P.C., the
Company's auditor since 2019, issued a "going concern"
qualification in its report dated Dec. 29, 2022, citing that the
Company has a net capital deficiency, and further losses are
anticipated in developing the Company's business, which raise
substantial doubt about its ability to continue as a going
concern.
HALL AT THE YARD: Taps Andrew Yurasko of IHT Group as CRO
---------------------------------------------------------
The Hall at the Yard, LLC seeks approval from the U.S. Bankruptcy
Court for the Middle District of Florida to employ Andrew Yurasko
of IHT Group, LLC as its chief restructuring officer.
The Debtor requires a restructuring officer to:
a. review and evaluate operations, business plans and financial
projections with the objective of assisting management in improving
the Debtor's operating performance and enhancing its enterprise
value;
b. assist with the bankruptcy schedules;
c. assist management with the development of a post-filing cash
flow forecast;
d. assist management with the reporting requirements in the
Debtor's bankruptcy case;
e. advise and assist management with respect to a plan of
reorganization and negotiations regarding same; and
f. perform other work as may be requested by management.
The CRO will be paid at the rate of $200 per hour.
Mr. Yurasko, a partner at IHT Group, disclosed in a court filing
that his firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Andrew Yurasko
IHT Group, LLC
18848 US Hwy 441, #422
Mount Dora, FL 32757
About The Hall at the Yard
The Hall at the Yard, LLC, a company in Tampa, Fla., sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
M.D. Fla. Case No. 23-00250) on Jan. 24, 2023. In the petition
signed by its manager, Jamal Wilson, the Debtor disclosed up to $1
million in assets and up to $10 million in liabilities.
Judge Catherine Peek McEwen oversees the case.
Edward J. Peterson, Esq., at Stichter, Riedel, Blain and Postler,
P.A. and Andrew Yurasko, a partner at IHT Group, LLC serve as the
Debtor's bankruptcy attorney and chief restructuring officer,
respectively.
HAWAIIAN HOLDINGS: Incurs $240.1 Million Net Loss in 2022
---------------------------------------------------------
Hawaiian Holdings Inc. has filed with the Securities and Exchange
Commission its Annual Report on Form 10-K disclosing a net loss of
$240.08 million on $2.64 billion of total operating revenue for the
year ended Dec. 31, 2022, compared to a net loss of $144.77 million
on $1.59 billion of total operating revenue for the year ended Dec.
31, 2021.
As of Dec. 31, 2022, the Company had $4.14 billion in total assets,
$1.12 billion in total current liabilities, $1.58 billion in
long-term debt, $1.10 billion in other liabilities and deferred
credits, and a total shareholders' equity of $333.26 million.
Cash, cash equivalents (excluding restricted cash) and short-term
investments totaled approximately $1.4 billion as of Dec. 31, 2022,
compared to $1.7 billion as of Dec. 31, 2021.
As of Dec. 31, 2022, the Company's current assets exceeded its
current liabilities by approximately $558.0 million as compared to
$902.9 million as of Dec. 31, 2021. Approximately $590.8 million
of the Company's current liabilities relate to its advanced ticket
sales and frequent flyer deferred revenue.
Hawaiian Holdings stated, "We cannot assure you that the
assumptions used to estimate our liquidity requirements will be
correct because we have never experienced such an unprecedented
event impacting global travel and, as a consequence, our ability to
predict the full impact of the COVID-19 pandemic is uncertain. In
addition, the magnitude and duration of the COVID-19 pandemic
remains uncertain. However, we expect to meet our liquidity needs
for the next twelve months with cash and cash equivalents
(excluding restricted cash), short-term investments and cash flows
from operations. We expect to meet our long-term liquidity needs
with cash flows from operations and financing arrangements."
A full-text copy of the Form 10-K is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1172222/000117222223000013/ha-20221231.htm
About Hawaiian Holdings
Hawaiian Holdings, Inc.'s primary asset is sole ownership of all
issued and outstanding shares of common stock of Hawaiian Airlines,
Inc. The Company is engaged in the scheduled air transportation of
passengers and cargo amongst the Hawaiian Islands (the Neighbor
Island routes) and between the Hawaiian Islands and certain cities
in the United States (the North America routes together with the
Neighbor Island routes, the Domestic routes), and between the
Hawaiian Islands and the South Pacific, Australia, New Zealand and
Asia (the International routes), collectively referred to as its
Scheduled Operations.
For the nine months ended Sept. 30, 2022, Hawaiian Holdings
reported a net loss of $189.92 million. Hawaiian Holdings
reported
a net loss of $144.77 million for the year ended Dec. 31, 2021, a
net loss of $510.93 million for the year ended Dec. 31, 2020, and
net income of $223.98 million for the year ended Dec. 31, 2019. As
of Sept. 30, 2022, the Company had $4.21 billion in total assets,
$1.16 billion in total current liabilities, $1.57 billion in
long-term debt, $1.12 billion in other liabilities and deferred
credits, and $347.48 million in total shareholders' equity.
HENRRY DELIVERY: Court OKs Interim Cash Collateral
--------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida,
Orlando Division, authorized Henrry Delivery Services, Inc. to use
the cash collateral of C T Corporation System as Representative,
Corporation Service Company as Representative, and Acme Company, on
an interim basis, retroactive to December 14, 2022.
The Debtor is permitted to use cash collateral to pay:
(a) amounts expressly authorized by the Court, including
monthly payments to the Subchapter V trustee;
(b) the current and necessary expenses set forth in the
budget, plus an amount not to exceed 10% for each line item; and
(c) additional amounts as may be expressly approved in writing
by the Secured Creditors.
As adequate protection, the Secured Creditors will have perfected
post-petition liens against cash collateral to the same extent and
with the same validity and priority as their prepetition liens,
without the need to file or execute any document as may otherwise
be required under applicable non bankruptcy law.
The Debtor will maintain insurance coverage for its property in
accordance with the obligations under the loan and security
documents with the Secured Creditors.
A continued hearing on the matter is set for April 6, 2023 at 2
p.m.
A copy of the Court's order and the Debtor's budget is available at
https://bit.ly/3El8UCq from PacerMonitor.com.
The Debtor projects total expenses, on a monthly basis, as
follows:
$73,501 for February 2023;
$76,160 for March 2023; and
$79,690 for April 2023.
About Henrry Delivery Services, Inc.
Henrry Delivery Services, Inc. sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 22-04921) on
December 14, 2022. In the petition signed by Henrry Campos Pena,
president, the Debtor disclosed up to $500,000 in assets and up to
$100,000 in liabilities.
Judge Catherine Peek McEwen oversees the case.
Buddy D. Ford, Esq., at Buddy D. Ford, P.A., is the Debtor's legal
counsel.
HLMC TITLE: Gets Cash Collateral Access Thru May 31
---------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois,
Eastern Division, authorized Matthew Brash, the Subchapter V
Trustee and trustee in possession of HMLC Title Services, Inc., to
use the cash collateral of Sapient Providence, LLC and provide
adequate protection to Sapient.
The Subchapter V Trustee is authorized to use cash collateral of
Sapient to make payments as contemplated in the budget.
The Trustee is directed to make Adequate Protection payments to
Sapient on or before February 22, 2023, March 22, 2023, April 22,
2023 and May 22, 2023.
A further hearing on the matter is scheduled for March 30, 2023 at
9:30 a.m.
A copy of the order and the Debtor's budget is available at
https://bit.ly/3lNhrYf from PacerMonitor.com.
The budget provides for total disbursements, on a weekly basis as
follows:
$1,597 for the week ending April 7, 2022;
$902 for the week ending April 14, 2022;
$7,252 for the week ending April 21, 2022;
$902 for the week ending April 28, 2022; and
$1,597 for the week ending May 5, 2022.
About HMLC Title Services, Inc.
HMLC Title Services, Inc. was organized as an Illinois corporation
in 2012. HMLC operates from 1147 W. 175th Homewood, Illinois 60430.
It owns a real property located at 17532-42 Dixie Highway,
Homewood, Illinois 60430, where it operates a strip mall.
HMLC sought protection under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. N.D. Ill. Case No. 22-02518) on March 4, 2022. In the
petition signed by Rajei J. Haddad, president, the Debtor disclosed
up to $50,000 in assets and up to $1 million in liabilities.
Judge Deborah L. Thorne oversees the case.
Laxmi P. Sarathy, Esq., at Whitestone, P.C., is the Debtor's
counsel.
HOMER CITY: $145M Bank Debt Trades at 28% Discount
--------------------------------------------------
Participations in a syndicated loan under which Homer City
Generation LP is a borrower were trading in the secondary market
around 72.4 cents-on-the-dollar during the week ended Friday,
February 17, 2023, according to Bloomberg's Evaluated Pricing
service data.
The $145 million facility is a Term loan that is scheduled to
mature on April 6, 2023. About $137 million of the loan is
withdrawn and outstanding.
Homer City Generation L.P. is a special purpose company that owns a
1,884 MW coal-fired plant in Homer City, Pa.
HONX INC: Exclusivity Period Extended to July 31
------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas
extended the time HONX, Inc. can keep exclusive control of its
Chapter 11 case, giving the company until July 31 to file a
bankruptcy plan and until Sept. 29 to solicit votes on that plan.
The extension allows the company to focus on the upcoming
proceeding to estimate asbestos claims and obtain enough
information for its bankruptcy plan, according to its attorney,
Matthew Cavenaugh, Esq., at Jackson Walker, LLP.
An initial hearing on the claims estimation is scheduled for May
10.
About HONX Inc.
HONX Inc. is a subsidiary of Hess Corporation, a publicly-traded
global energy company. HONX is the corporate successor of Hess Oil
Virgin Islands Corporation, which owned and operated an oil
refinery in St. Croix, U.S. Virgin Islands from the beginning of
its construction in 1965 until a non-operating entity with minimal
assets consisting primarily of a 50% ownership in a joint venture
from 1998 to 2016, and post-2016 it has continued its corporate
existence solely to manage its alleged asbestos liabilities related
to the refinery.
HONX sought Chapter 11 bankruptcy protection (Bankr. S.D. Texas
Case No. 22-90035) on April 28, 2022. In the petition signed by
Todd R. Snyder, chief administrative officer, the Debtor disclosed
$10 million to $50 million in assets and $500 million to $1 billion
in liabilities.
Judge Marvin Isgur oversees the case.
The Debtor tapped Kirkland & Ellis and Jackson Walker, LLP as
bankruptcy counsels; Piper Sandler Companies/TRS Advisors, LLC as
investment banker and financial advisor; and Bates White, LLC as
asbestos consultant. Stretto, Inc. is the claims, noticing and
solicitation agent.
The Honorable Barbara J. Houser (Ret.) was appointed as the legal
representative for future asbestos claimants in this Chapter 11
case. Ms. Houser tapped Young Conaway Stargatt & Taylor, LLP as
bankruptcy counsel; O'ConnorWechsler, PLLC as local counsel; FTI
Consulting, Inc., as financial advisor; and NERA Economic
Consulting as consultant.
ILLINOIS HSG DEV AUTH: S&P Lowers 2005 Rev. Bonds Rating to 'BB'
----------------------------------------------------------------
S&P Global Ratings lowered its long-term rating to 'BB' from 'BB+'
on the Illinois Housing Development Authority's series 2005
multifamily housing revenue bonds, issued for Preservation Housing
Management and Crestview Preservation Associates L.P.'s Crestview
Village Apartments project. The outlook is stable.
"The downgrade reflects our projection of the timing of an
insufficiency in debt service coverage (DSC). Using S&P Global
Ratings' speculative-grade rating level stressed reinvestment
assumptions, we expect that DSC will fall below 1.0x by September
2037," said S&P Global Ratings credit analyst Caroline West. S&P
said, "In our view, a rating one notch below the current rating cap
of 'BB+' captures the timing to that insufficiency, including the
likelihood that the transaction may meet the conditions of a lower
rating cap of 'B+' over the medium term. If current conditions
persist, we would expect to continue to transition the rating down
to the lower rating cap."
The bonds are backed by a mortgage loan that is secured by an
irrevocable standby Fannie Mae credit enhancement facility.
"While the mortgage loan benefits from the very strong credit
quality of the Fannie Mae credit enhancement facility, in our view,
revenues from mortgage debt service payments and investment
earnings will be insufficient to cover full and timely debt service
on the bonds plus fees in a timely manner through maturity," said
Ms. West.
S&P said, "The rating is capped at 'BB+' under our "U.S. Federally
Enhanced Housing Bonds" criteria (published Nov. 12, 2019) due to
our calculations (using speculative-grade rating level S&P Global
Ratings stressed reinvestment assumptions) that DSC will fall below
1.0x more than 10 years from now. According to our projections, we
expect the transaction to experience a cash deficit resulting in
coverage of 0.6x for the principal and interest payment due on
Sept. 15, 2037. The rating is one notch below the cap, reflecting a
rating transition toward a potential future cap of 'B+', which we
expect to apply once we are four-to-10 years out from the projected
cash deficit.
"While the stable outlook reflects our view that the rating is
unlikely to change within a one-year timeframe, we may continue to
transition the rating down toward the lower cap of 'B+' over the
medium term. The bonds are structured with monthly interest
payments and semiannual principal payments, and have a bullet
maturity of $1.585 million at final maturity on Sept. 15, 2037.
"We have analyzed the transaction's environmental, social, and
governance (ESG) risks relative to its legal framework, operational
risk framework, cash flow and enhancement type, and views these
risks as neutral in our credit analysis."
INGLESIDE AT KING FARM: Fitch Hikes IDR to 'B', Outlook Stable
--------------------------------------------------------------
Fitch Ratings has upgraded the Issuer Default Rating (IDR) for King
Farm Presbyterian Retirement Community, Inc. d/b/a Ingleside at
King Farm (IKF) to 'B' from 'B-' and the rating on the following
revenue bonds issued by the Mayor and Council of Rockville, MD
(Rockville) on behalf of IKF to 'B' from 'B-':
- $48.9 million economic development refunding revenue bonds,
series 2017A-1;
- $23.8 million economic development refunding revenue bonds,
series 2017A-2;
- $84.8 million economic development revenue bonds, series 2017B.
The Rating Outlook is Stable.
Entity/Debt Rating Prior
----------- ------ -----
Ingleside at
King Farm (MD) LT IDR B Upgrade B-
Ingleside at
King Farm (MD)
/General
Revenues/1 LT LT B Upgrade B-
SECURITY
The bonds are secured by a pledge of and lien on the obligated
group's (OG) gross revenues, a mortgage lien on the community, and
a debt service reserve fund.
ANALYTICAL CONCLUSION
The upgrade to 'B' reflects a second consecutive year of improved
financial performance at IKF. Unaudited 2022 results show the
operating ratio strengthening to below 100%, unrestricted cash and
investments growing by about 13% to $18.1 million, and coverage of
maximum annual debt service (MADS) of 1.8x, comfortably above the
1.2x debt service coverage covenant. The improved performance was
driven by higher occupancy across all levels of care, which
contributed to a strong year of cash flow. The higher levels of
unrestricted liquidity and good debt service coverage are
consistent with the positive rating action thresholds that Fitch
delineated in the sensitivities section of its last press release.
2022 was the first year IKF was tested on its $9.3 million MADS,
after completing its sizable campus expansion and repositioning
project.
The 'B' rating continues to reflect the vulnerability of IKF's
financial profile to potential deterioration in the business and
economic environment. This vulnerability is especially heightened
given Fitch's 'deteriorating' outlook for the Life Plan Communities
(LPC) sector. The headwinds facing the sector in the current year
-- inflationary and labor pressures, and an expected decline in
real estate market values -- dampen the full effect of the
operational and financial improvements IKF has achieved over the
last 18 months.
Fitch further notes as a credit positive the stabilizing of two
entrance fee-related issues that have been weighing on IKF's
financial profile. The first issue is entrance fee refunds due to
certain residents at IKF. These are residents who have transitioned
from independent living (IL) to other levels of care at IKF, have
had their IL units (ILUs) resold, and will be due a refund once
they fully age through the continuum of care. In the year the
entrance fee refund comes due, the refund is paid directly from
cash flow or is taken off the balance sheet since the associated
entrance fee was received in a prior year, when the unit was
resold. This issue has pressured liquidity and cash flow over the
last three years. However, Fitch's credit concerns regarding this
issue have eased as IKF's improved unrestricted liquidity and
operational performance put IKF in a better position to absorb
these "naked" IL refunds as they come due.
The second issue is related to IKF's transition from 90% and 100%
refundable contracts to less refundable contracts. As is standard
in the sector, the less refundable contracts have lower price
points than the 90% to 100% refundable contacts, and, thus, the
refunds being paid out are higher than the new entrance fees coming
in. This imbalance was one driver of IKF's debt service coverage
violation in 2020, when IKF had negative entrance fee receipts,
having paid out more in refunds than it received in entrance fee
receipts for that year. In response, IKF limited the number of
non-refundable contracts it offered in a given year. Since
implementing the policy change, IKF has had two years of positive
net entrance fee receipts, and management reports no change to its
policy of closely monitoring the number of non-refundable entrance
fee contracts it sells in any given year.
Fitch's forward look shows IKF's financial profile remaining stable
over the next year. The higher levels of occupancy will continue to
support steady cash flow and MADS coverage above 1.2x. Capex are
expected to be well below depreciation, given IKF's minimal capital
needs, after completing its campus expansion and repositioning
project in 2020. Future positive rating action will be determined
by IKF's ability to maintain the improved levels of performance and
grow its unrestricted liquidity.
KEY RATING DRIVERS
Revenue Defensibility: 'bbb'
Single Site LPC with a Good Market Position
The midrange revenue defensibility is supported by the strength of
IL demand at IKF, with IL occupancy rising to 94% in 2022 from 90%
in 2021. The good demand is further evidenced by IKF's ability to
fill its 119 ILU Gardenside expansion, which opened in 2019 and
largely filled during the pandemic. The stabilized levels of
occupancy at Gardenside contributed to the overall improvement in
IL occupancy.
Occupancy in assisted living (AL), memory care, and skilled nursing
also improved in 2022. IKF management reported that the number of
IL residents moving through the continuum increased in the second
half of 2022, which led to the skilled nursing occupancy growing to
54% from 47% in 2021. While the occupancy remains lower than much
of the sector, it is not a credit concern for Fitch IKF's skilled
nursing center only takes care of IKF residents as state of
Maryland regulations do not allow IKF to take direct outside admits
into its skilled nursing center. Additionally, IKF is able to flex
staff to the occupancy levels without the use of agency nurses.
AL and memory care occupancy averaged 76% and 57%, respectively, in
2022, up from 72% and 45% in 2021. IKF management reports newer
competition for memory care, which has slowed the building of the
memory care occupancy. Management expects memory care to continue
to show improvement over the next two years. Overall, there is some
competition in the primary service area of Rockville, MD and in the
region for all service lines, but IKF benefits from strong service
area demographics, with excellent local wealth indicators (median
income in Rockville is well above state and national levels). IKF's
entrance fee pricing is consistent with area housing prices and
resident wealth indicators. Additionally, Fitch believes there is
minimal direct competition in the greater Rockville area for IKF's
higher end IL apartments and that is supported by IKF's good
waitlist, with about 100 members currently on the list.
Operating Risk: 'bb'
Elevated Leverage Position; Improved Performance
The weak operating risk assessment largely reflects IKF's elevated
debt burden. At FYE 2022, IKF's maximum MADS as a percentage of
revenue was consistent with a weaker operating assessment at
24.4%., and debt-to-net available, while improved to 8.3x, remained
consistent with the assessment. Those figures are expected to
remain consistent with a non-investment grade credit, with MADS as
a percentage of revenue moderating as revenue continues to grow.
The 96.8% operating ratio and 38.7% net operating margin - adjusted
in 2022 (unaudited) were much improved over 2021 and 2020, when
these ratios were 104% and 116%, and 25.2% and (13.3%),
respectively. The improved performance reflected the higher levels
of occupancy, especially the Gardenside occupancy stabilizing above
90%, good cost management, which helped absorb some of the
inflationary labor costs, and an exceptional year for net entrance
fee receipts. Fitch expects IKF to maintain improved levels of
performance as the higher levels of occupancy and good cost
management sustain operations. After the good year of net entrance
fee receipts of $9.7 million, net entrance fee receipts are
expected to normalize to levels closer to $3 million to $5 million
a year.
Over the last five years, capex averaged 407% of depreciation
reflecting the spending on the campus repositioning project. As a
result, IKF has no major capital projects planned and capex
spending is expected to remain well below depreciation at about $4
million a year.
Financial Profile: 'b'
Base Case Performance Good for the Rating Level
Given IKF's midrange revenue defensibility and weak operating risk
and Fitch's forward-looking scenario analysis, Fitch expects key
leverage metrics to remain stable through the current economic and
business cycle. IKF had unrestricted cash and investments of
approximately $18.1 million at Dec. 31, 2022, which represented
19.8 % of total adjusted debt, when including an $9 million debt
service reserve fund. Days cash on hand of 204 days was above the
covenant.
Fitch's baseline scenario, which is a reasonable forward look of
financial performance over the next five years given current
economic expectations, shows IKF operating ratio improving over the
next few years to be consistently below 100%. Capital spending is
expected to be below depreciation over this time. At the 'B' rating
level, Fitch relies on the base case for analytical purposes and
not the stress case. The base case shows IKF's financial profile
remining largely stable to slightly improved over the next three to
five years.
Asymmetric Additional Risk Considerations
No asymmetric risk factors affected this rating determination.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- Deterioration in liquidity such that unrestricted cash and
investments fall to below $12 million;
- Failure to consistently meet the 1.2x coverage covenant for the
$9.3 million MADS.
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- Growth in unrestricted liquidity such that it stabilizes above
$20 million;
- MADS coverage that stabilizes above 1.3x.
CREDIT PROFILE
IKF is a type-C LPC located in Rockville, MD about 15 miles outside
of Washington, D.C. that opened in 2009 and achieved stabilized
occupancy in 2012. It currently offers 368 ILUs, 32 AL units, 32
memory care/AL beds and 45 skilled nursing facility beds. Total
operating revenues (unaudited) were $38.1 million in fiscal 2022.
IKF is the only member of the OG.
IKF's parent company and sole corporate member is Westminster
Ingleside King Farm Presbyterian Retirement Communities, Inc.,
d/b/a Ingleside. Ingleside is also the sole member of two other
LPCs, Ingleside at Rock Creek in Washington, D.C. and Westminster
at Lake Ridge (BB/Negative) in Lake Ridge, VA, as well as a
non-profit supporting foundation, a for-profit development arm and
non-profit home care service provider.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
INNOVATION PHARMACEUTICALS: Incurs $361K Net Loss in Second Quarter
-------------------------------------------------------------------
Innovation Pharmaceuticals Inc. has filed with the Securities and
Exchange Commission its Quarterly Report on Form 10-Q disclosing
a net loss of $361,000 on $0 of revenues for the three months ended
Dec. 31, 2022, compared to a net loss of $1.87 million on $0 of
revenues for the three months ended Dec. 31, 2021.
For the six months ended Dec. 31, 2022, the Company reported a net
loss of $1.79 million on $0 of revenues compared to a net loss of
$3.93 million on $0 of revenues for the six months ended Dec. 31,
2021.
As of Dec. 31, 2022, the Company had $8.69 million in total assets,
$5.61 million in total liabilities, and $3.08 million in total
stockholders' equity.
As of Dec. 31, 2022, the Company's cash amounted to $2.4 million
and current liabilities amounted to $4.8 million.
Innovation stated, "The Company has expended substantial funds on
its clinical trials and expects to continue our spending on
research and development expenditures. We expect to incur further
losses in the development of our business and have been dependent
on funding operations from inception. These conditions raise
substantial doubt about our ability to continue as a going concern.
Management's plans include continuing to finance operations
through the private or public placement of debt and/or equity
securities and the reduction of expenditures. However, no
assurance can be given at this time as to whether we will be able
to achieve these objectives."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1355250/000147793223001071/ipix_10q.htm
About Innovation Pharmaceuticals
Innovation Pharmaceuticals Inc. (IPIX) -- http://www.IPharmInc.com
-- is a clinical stage biopharmaceutical company developing a
portfolio of innovative therapies addressing multiple areas of
unmet medical need, including inflammatory diseases, cancer,
infectious disease, and dermatologic diseases.
Innovation Pharmaceuticals reported a net loss of $7.04 million for
the year ended June 30, 2022, compared to a net loss of $13.87
million for the year ended June 30, 2021. As of Sept. 30, 2022,
the Company had $9.34 million in total assets, $5.92 million in
total liabilities, and $3.42 million in total stockholders'
equity.
Farmington, Utah-based Pinnacle Accountancy Group of Utah (a dba of
Heaton & Company, PLLC), the Company's auditor since 2018, issued a
"going concern" qualification in its report dated Sept. 28, 2022,
citing that the Company has negative working capital, has suffered
losses and negative cash flow from operations, which raise
substantial doubt about its ability to continue as a going concern.
INNOVATIVE DESIGNS: Incurs $225K Net Loss in 2022
-------------------------------------------------
Innovative Designs, Inc. has filed with the Securities and Exchange
Commission its Annual Report on Form 10-K disclosing a net loss of
$225,489 on $258,734 of net revenues for the year ended Oct. 31,
2022, compared to a net loss of $322,732 on $225,601 of net
revenues for the year ended Oct. 31, 2021.
As of Oct. 31, 2022, the Company had $1.48 million in total assets,
$474,159 in total liabilities, and $1 million in total
stockholders' equity.
Kennett Square, PA-based RW Group, LLC, the Company's auditor since
2021, issued a "going concern" qualification in its report dated
Feb. 13, 2023, citing that the Company had net losses and negative
cash flows from operations for the years ended Oct. 31, 2022 and
2021 and an accumulated deficit at Oct. 31, 2022 and 2021. These
factors raise substantial doubt about the Company's ability to
continue as a going concern for one year from the issuance date of
these financial statements.
A full-text copy of the Form 10-K is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1190370/000173112223000202/e4409_10k.htm
About Innovative Designs
Headquartered in Pittsburgh, Pennsylvania, Innovative Designs, Inc.
operates in two separate business segments: cold weather clothing
and a house wrap for the building construction industry. Both of
its segment lines use products made from INSULTEX, which is a
low-density foamed polyethylene with buoyancy, scent block, and
thermal resistant properties. The Company has a license agreement
directly with the owner of the INSULTEX Technology.
ISABEL ENTERPRISES: Reaches Settlement with Class 3 & 5 Creditors
-----------------------------------------------------------------
Isabel LLC and Isabel Enterprises, Inc., submitted a Fourth Amended
Disclosure Statement and Plan dated February 16, 2023.
The Debtor has reached a settlement agreement with the Class 3 and
Class 5 Creditors which modifies the treatment of claims of the
parties in this Disclosure Statement and the accompanying Plan.
That Settlement Agreement shall become part of the Plan through the
Order Confirming Plan to be entered upon Confirmation.
The Joint Plan seeks to restructure the prepetition Claims held by
the LLC Creditors of the LLC Debtor ("Reorganized Isabel LLC") and
the prepetition Claims held by the Enterprises Creditors of the
Enterprises Debtor ("Reorganized Isabel Enterprises," and together
with Reorganized Isabel LLC, the "Reorganized Debtors") in order to
resume operations pursuant to its new business plan ("New Business
Plan") and generate sufficient revenues to cover its operating
costs, including lease payments to Reorganized Isabel LLC pursuant
to a New Lease.
The New Lease will be substantially in form and content the
prepetition lease, and principally will require Reorganized Isabel
Enterprises to make monthly payments in an amount that enables
Reorganized Isabel LLC to satisfy the Claims held by the LLC
Creditors. Any available net income remaining in Reorganized Isabel
Enterprises after the lease payments are made that are otherwise
not necessary to fund the continued operations of Reorganized
Isabel Enterprises will be distributed by the Subchapter V Trustee
to the Enterprises Creditors holding Allowed Unsecured Claims
against Reorganized Isabel Enterprises.
The New Business Plan pivots away from the prior Restaurant and
directly into a retail business selling wellness products and
pre-packaged goods. The Reorganized Isabel Enterprises intends to
begin operations prior to the Effective Date and will operate on
consignment and subsequently will transition over to trade
payables. Cash flow projections for Reorganized Isabel Enterprises
for the next three years following the occurrence of the Effective
Date presume that the cost of goods sold will, on average, be 50%
of retail sales.
The Debtors' reorganization plan preserves the capital structure of
the prepetition Debtors and does not seek or intend to effectuate
any form of substantive consolidation of the assets and liabilities
of each of the Debtors, nor seeks to effectuate any structural
subordination or disallowance of Allowed Claims held by the LLC
Creditors and the Enterprises Creditors. Each of the Debtors will
emerge from bankruptcy protection on the Effective Date as separate
and distinct legal entities with a New Lease that mirrors the legal
structure of the Debtors prior to the Petition Dates.
Class 3 consists of the OR Real Estate Secured Claim. Debtor shall
reamortize the Note of the Class 3 Claimant over a period of 25
years at a 9% interest rate. The associated note will be deemed
current with a principal balance of $850,000. The LLC Debtor shall
make interest only payments to Claimant for the first 12 months
following the Standstill Period in the amount of $6,375. Starting
on the 13th month following the Standstill Period the Loan will be
fully amortizing and trigger a new monthly principal and interest
payment in the approximate amount of $7,133.17.
The first payment shall be due on the 1st of the month following
the Standstill Period. This Claimant's Claim shall balloon 5 years
after termination of the Standstill Period, when all remaining
amounts shall be immediately due and payable. Claimant shall retain
their lien until they are satisfied in full. This Claimant's Claim
shall be deemed current on the Effective Date, subject to the
repayment terms above. In the event the Class 3 Claimant agrees to
vote for this Plan, LLC Debtor shall agree to surrender its
interest in the Real Property in the event the Balloon Payment
above is not paid within 20 days of trigger.
Class 5 consists of the SBA's Allowed Secured Claim against LLC
Debtor. LLC Debtor will retain the current contract terms with the
SBA which call for Monthly payments of $2,500.00 with 3% interest
commencing March 1, 2023, with balloon payment at maturity. Debtor
will also agree to pay 1/60th of any outstanding arrears amount in
addition to the normal monthly payment amount starting the first
day of the month following the Stand Still Period. Such arrears
amount shall be fixed as of the start of the Repayment Period. The
SBA will retain its lien until paid or otherwise satisfied.
A full-text copy of the Fourth Amended Disclosure Statement dated
February 16, 2023 is available at https://bit.ly/3xEyvlX from
PacerMonitor.com at no charge.
Attorneys for Debtors:
Oren B. Haker
STOEL RIVES LLP
760 SW Ninth Avenue, Suite 3000
Portland, OR 97205
Telephone: 503.224.3380
Facsimile: 503.220.2480
oren.haker@stoel.com
About Isabel Enterprises
Isabel LLC owns two tax lots consisting of a commercial unit
located at 330 NW 10th Avenue, #116, Portland, Oregon 97209 and a
related parking unit. Historically, Isabel LLC leased the property
to affiliate Isabel Enterprises, which operated a restaurant on the
premises commonly known as the Isabel Pearl. Amid deteriorating
conditions in the neighborhood and the pandemic, the restaurant
shut operations in July 2019.
Amid an impending sale of the property as a result of a foreclosure
action initially instituted by the Condominium Owners' Association,
Isabel Enterprises, Inc., and Isabel LLC sought Chapter 11
protection (Bankr. D. Ore. Lead Case No. 22-30801) on May 18, 2022.
In its petition, Isabel Enterprises was estimated to have $50,000
to $100,000 in assets and $1 million to $10 million in
liabilities.
The Hon. Peter C. Mckittrick oversees the cases.
Oren B. Haker, Esq., of Stoel Rives LLP is the Debtors' counsel.
ISAGENIX INTERNATIONAL: $375M Bank Debt Trades at 59% Discount
--------------------------------------------------------------
Participations in a syndicated loan under which Isagenix
International LLC is a borrower were trading in the secondary
market around 40.8 cents-on-the-dollar during the week ended
Friday, February 17, 2023, according to Bloomberg's Evaluated
Pricing service data.
The $375 million facility is a Term loan that is scheduled to
mature on June 14, 2025. About $295.3 million of the loan is
withdrawn and outstanding.
Isagenix International LLC is a privately held multi-level
marketing company that sells dietary supplements and personal care
products. The company, based in Gilbert, Arizona, was founded in
2002 by John Anderson, Jim Cover, and Kathy Cover.
ISTANBUL REGO: Taps Wisdom Professional Services as Accountant
--------------------------------------------------------------
Istanbul Rego Park, Inc. seeks approval from the U.S. Bankruptcy
Court for the Eastern District of New York to employ Wisdom
Professional Services Inc. as its accountant.
The Debtor requires an accountant to gather and verify information
necessary to compile and prepare its monthly operating reports.
The firm will be paid at the rate of $200 per report. It received
from the Debtor an advance retainer fee of $3,000.
Michael Shtarkman, a certified public accountant at Wisdom
Professional Services, 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 Shtarkman, CPA
Wisdom Professional Services, Inc.
626 Sheepshead Bay Road, Suite 640
Brooklyn, NY 11224
Telephone: (718) 554-6672
Facsimile: (718) 954-8994
Email: michael@shtarkmancpa.com
About Istanbul Rego Park
Istanbul Rego Park, Inc., filed a Chapter 11 bankruptcy petition
(Bankr. E.D.N.Y. Case No. 22-43000) on Dec. 2, 2022, with as much
as $1 million in both assets and liabilities. Judge Nancy Hershey
Lord oversees the case.
The Debtor tapped the Law Offices of Alla Kachan, PC as bankruptcy
counsel and Wisdom Professional Services Inc. as accountant.
JAF 27 LLC: Updates Several Loan Agreements; Files Amended Plan
---------------------------------------------------------------
JAF 27, LLC, submitted a First Amended Chapter 11 Plan of
Reorganization for Small Business under Subchapter V dated February
16, 2023.
The Debtor's assets consist of three separate parcels of land, all
located in Lowell, Massachusetts, with the improvements thereon,
further described as follows:
* 621 Central Street. The Debtor purchased 621 Central together
with an adjacent parcel known as 12-16 Elm Street, on March 24,
2020, for $2,000,000.00, with $4,500.00 equity of investment, a
$1,830,500.00 mortgage from Belvidere Capital, LLC, and a
$165,000.00 mortgage from the parcels' previous owner, Carlos
Borges. Since acquiring 621 Central, the Debtor has used the
property as collateral to secure the following outstanding
mortgages:
-- Recorded with the Middlesex North Registry of Deeds
Registered Land Document #305269 Certificate #44784, dated May 19,
2020, a $165,000.00 mortgage to Marc P. Gendreau;
-- Recorded with the Middlesex North Registry of Deeds
Registered Land Document #308478 Certificate #44787, dated December
18, 2020, a $95,000.00 mortgage to Hooshmand S. Afshar and Zarrin
S. Afshar;
-- Recorded with the Middlesex North Registry of Deeds
Registered Land Document #311912 Certificate #44787, dated July 13,
2021, a $130,000.00 mortgage to Christian Doherty;
-- Recorded with the Middlesex North Registry of Deeds
Registered Land Document #311913 Certificate #44787, dated July 13,
2021, a $10,000.00 mortgage to Christian Doherty;
-- Recorded with the Middlesex North Registry of Deeds
Registered Land Document #313820 Certificate #44787, dated November
5, 2021, a $70,000.00 mortgage to JMF Realty, LLC; and
-- Recorded with the Middlesex North Registry of Deeds
Recorded in Book 36770, Page 191, dated January 28, 2022, an
$80,000 mortgage to Kevin J. Ahern, Jr. and Brad M. Pacheco.
* 175 Dalton. The Debtor purchased 175 Dalton on July 27, 2021,
for $360,000.00, with $16,000.00 equity of investment and a
$344,000.00 mortgage from Hardest Working Realty, LLC, recorded
with the Middlesex North Registry of Deeds in Book 36051, Page 207,
dated July 27, 2021. Since acquiring 175 Dalton, the Debtor has
used the property as collateral to secure a mortgage from JMF
Realty, LLC in the amount of $70,000.00, recorded with the
Middlesex North Registry of Deeds in Book 37257, Page 51, dated
July 27, 2022.
* 44 Billerica. The Debtor purchased 44 Billerica on January 9,
2020, for $79,900.00, with an $85,000.00 mortgage from Belvidere
Capital, LLC, recorded in the Middlesex North Registry of Deeds in
Book 33736, Page 212, dated January 9, 2020. Since acquiring 44
Billerica, the Debtor has used the property as collateral to secure
a mortgage from Omar Rafik in the amount of $100,000.00, recorded
with the Middlesex North Registry of Deeds in Book 36138, Page 265,
dated August 17, 2021.
On January 2, 2023, the Debtor executed a purchase and sale
agreement (the "P&S") to sell 175 Dalton for $400,000.00 (the
"Purchase Price"). On January 19, 2023, the Debtor filed a Motion
(the "Sale Motion") seeking authority to sell the Property pursuant
to the P&S (the "Sale"), free and clear, to Lawrence Carney (the
"Buyer"). As set forth more fully in the Sale Motion and its
Exhibits, the P&S provided for a $500.00 deposit, no financing
contingency, and a closing date of February 15, 2023 (the
"Closing"). The Motion is currently pending decision of this Court.
Since filing its petition for relief under Chapter 11, Debtor has
received $14,700.00 in rental income from the tenants of 621
Central, and at the time of the filing of this Plan there is
$13,200.00 in outstanding rent due from tenants of 621 Central.
This rental arrearage has been caused by a delay of grant proceeds
from the Residential Assistance for Families in Transition ("RAFT")
program. Debtor expects to receive the grant proceeds by the end of
February 2023 that will cure the outstanding rent owed; if Debtor
does not receive the grant proceeds by March 1, 2023, Debtor will
pursue eviction of said tenants for nonpayment of rent.
Marc P. Gendreau Loan: Pursuant to a mortgage recorded with the
Middlesex North Registry of Deeds Registered Land Document #305269
Certificate #44784, dated May 19, 2020, a $165,000.00 mortgage to
Marc P. Gendreau, on 621 Central a security agreement and
assignment in the lease and rents of 621 Central, and an all-asset
security interest, pursuant to a UCC-1 filing, in the Personal
Property and guaranteed by Debtor's owner. The maturity date under
the loan was October 19, 2020; since the loan was not paid in full
by said date, Debtor is required to pay a default interest rate of
15% per annum. According to the Proof of Claim filed by Mr.
Gendreau, as of the Petition Date, the amount due on account of Mr.
Gendreau's Claim for the loan was $66,495.81.
Afshar Brothers' Loan: Pursuant to a mortgage recorded with the
Middlesex North Registry of Deeds Registered Land Document #308478
Certificate #44787, dated December 18, 2020, a $95,000.00 mortgage
to Hooshmand S. Afshar and Zarrin S. Afshar (the "Afshar
Brothers"), on 621 Central, a security agreement and assignment in
the lease and rents of 621 Central, and an all-asset security
interest, pursuant to a UCC-1 filing, in the Personal Property and
guaranteed by Debtor's owner. The maturity date under the loan was
March 17, 2021; since the loan was not paid in full by said date,
Debtor is required to pay a default interest rate of 15% per annum.
According to the Proof of Claim filed by the Afshar Brothers, as of
the Petition Date, the amount due on account of the Afshar
Brothers' Claim for the loan was $60,593,75.
Christian Doherty Loans: Pursuant to a mortgage recorded with the
Middlesex North Registry of Deeds Registered Land Document #311912
Certificate #44787, dated July 13, 2021, a $130,000.00 mortgage to
Christian Doherty, and a mortgage recorded with the Middlesex North
Registry of Deeds Registered Land Document #311913 Certificate
#44787, dated July 13, 2021, a $10,000.00 mortgage to Christian
Doherty, on 621 Central, both recorded on July 13, 2021. Christian
Doherty did not file a Proof of Claim prior to the Claim Bar Date.
However, in Debtor's Schedule D, it listed the amount of the
undisputed claim for Christian Doherty as of the date of filing was
$10,000.
JMF Realty, LLC Loan: Pursuant to a mortgage recorded with the
Middlesex North Registry of Deeds Registered Land Document #313820
Certificate #44787, dated November 5, 2021, a $70,000.00 mortgage
to JMF Realty, LLC, on both 621 Central and 175 Dalton, a security
agreement and assignment in the lease and rents of 621 Central and
175 Dalton, and an all-asset security interest, pursuant to a UCC 1
filing, in the Personal Property and guaranteed by Debtor's owner.
The maturity date under the loan was November 27, 2022. According
to the Proof of Claim filed by JMF, as of the Petition Date, the
amount due on account of JMF's Claim was $68,309.50.
Kevin J. Ahern Jr. and Brad M. Pacheco Loan: Pursuant to a mortgage
recorded with the Middlesex North Registry of Deeds Recorded in
Book 36770, Page 191, dated January 28, 2022, an $80,000 mortgage
to Kevin J. Ahern, Jr. and Brad M. Pacheco, on 621 Central, a
security agreement and assignment in the lease and rents of 621
Central, and an all-asset security interest, pursuant to a UCC-1
filing, in the Personal Property and guaranteed by Debtor's owner.
According to the Proof of Claim filed by Ahern and Pacheco, as of
the Petition Date, the amount due on account of Ahern and Pacheco's
Claim for the loan was $80,000.00.
Hardest Working Realty, LLC Loan: Pursuant to a mortgage recorded
with the Middlesex North Registry of Deeds Recorded in Book 36051,
Page 207, dated July 27, 2021, an $344,000 mortgage to Hardest
Working Realty, LLC, on 175 Dalton, a security agreement and
assignment in the lease and rents of 175 Dalton, and an all-asset
security interest, pursuant to a UCC-1 filing, in the Personal
Property and guaranteed by Debtor's owner. The maturity date under
the loan was November 26, 2021; since the loan was not paid in full
by said date, Debtor is required to pay a default interest rate of
13% per annum. According to the Proof of Claim filed by Hardest
Working, as of the Petition Date, the amount due on account of
Hardest Working's Claim was $368,230.82.
Belvidere Capital, LLC Loan: Pursuant to a mortgage recorded with
the Middlesex North Registry of Deeds Recorded in Book 33736, Page
212, dated January 9, 2020, an $85,000 mortgage to Belvidere
Capital, LLC, on 44 Billerica, a security agreement and assignment
in the lease and rents of 44 Billerica, and an all-asset security
interest, pursuant to a UCC-1 filing, in the Personal Property and
guaranteed by Debtor's owner. The maturity date under the loan was
January 9, 2021; since the loan was not paid in full by said date,
Debtor is required to pay a default interest rate of 17% per annum.
According to the Proof of Claim filed by Belvidere, as of the
Petition Date, the amount due on account of Belvidere's Claim was
$113,568.22.
Omar Rafik Loan: Pursuant to a mortgage recorded with the Middlesex
North Registry of Deeds Recorded in Book 36138, Page 265, dated
August 17, 2021, a $100,000 mortgage to Omar Rafik, which amount
was secured by 44 Billerica. Omar Rafik did not file a Proof of
Claim prior to the Claim Bar Date. However, in Debtor's Schedule D,
it listed the amount of the undisputed claim for Omar Rafik as of
the date of filing was $20,000.
Like in the prior iteration of the Plan, each holder of a General
Unsecured Claim shall receive a pro-rata share of an unsecured pot
of funds sourced from the proceeds of any of Debtor's property
sales where funds remain after paying all Secured Claims of that
respective property in full.
A full-text copy of the First Amended Plan dated February 16, 2023
is available at https://bit.ly/3SkFSIQ from PacerMonitor.com at no
charge.
About JAF 27 LLC
JAF 27, LLC is a Tewksbury, Mass.-based company engaged in renting
and leasing real estate properties.
JAF 27 filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. D. Mass. Case No. 22-40648) on Sept. 7,
2022, with between $1 million and $10 million in both assets and
liabilities. Steven Weiss serves as Subchapter V trustee.
Judge Elizabeth D. Katz oversees the case.
Christopher Murray, Esq., at Murray Law Firm, P.C., is the Debtor's
legal counsel.
JLK CONSTRUCTION: Court OKs Cash Collateral Access Thru March 21
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Western District of Missouri
authorized JLK Construction, LLC to use cash collateral on an
interim basis in accordance with the budget, with a 10% variance,
through the final hearing set for March 21, 2023 at 9 a.m.
The Debtor is indebted to Nodaway Valley Bank and Newtek Small
Business Finance, LLC who assert a security interest in and liens
upon the Debtor's assets. As a result, the Secured Creditors assert
interests in the cash collateral.
Newtek argued at the Hearing in favor of the following:
a) The Budget should be limited to eight weeks for purposes of
any authorized use of cash collateral;
b) The line item in the Budget for payment of "draws" should
be eliminated;
c) Any authorization for use of cash collateral should
immediately terminate if the terms of the Order are violated by the
Debtor;
d) The Debtor will provide written notice to the Secured
Creditors of any intended use of the cash collateral in excess of
permitted variances;
e) The Debtor will provide to the Secured Creditors current
copies of insurance binders reflecting the nature and scope of
insurance coverage as well as the designation of the Secured
Creditors as loss payees; and
f) Additional adequate protection for the Secured Creditors in
the form of a superpriority administrative expense claim pursuant
to 11 U.S.C. section 507(b).
The Debtor disagrees with Newtek.
According to the Court's order, as adequate protection, the Secured
Creditors are granted Replacement Liens in all post-petition assets
of the Debtor, other than avoidance power actions and recoveries.
The Replacement Liens will have the same extent, validity and
priority (and shall be subject to the same defenses) as were their
respective liens and security interests in prepetition collateral.
To the extent the Replacement Liens and other protections supplied
fail to provide adequate protection to the Secured Creditors, the
Secured Creditors may have superpriority administrative expense
claims in accordance with 11 U.S.C. sections 507(b).
The Debtor will continue to maintain adequate and sufficient
insurance on all its property and assets and shall name as a loss
payee Nodaway and Newtek.
A copy of the order is available at https://bit.ly/3IAF1jX from
PacerMonitor.com.
About JLK Construction, LLC
JLK Construction, LLC moves dirt, excavates dirt and does basic
concrete flatwork. It is a union shop.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Mo. Case No. 23-50034) on February 13,
2023. In the petition signed by Jesse L. Kagarice, managing member,
the Debtor disclosed up to $10 million in both assets and
liabilities.
Judge Brian T. Fenimore oversees the case.
Colin N. Gotham, Esq., at Evans and Mullinix, P.A., and Steven R.
Fox, Esq., at The Fox Law Corp., Inc., represent the Debtor as
legal counsel.
JP INTERMEDIATE: $450M Bank Debt Trades at 32% Discount
-------------------------------------------------------
Participations in a syndicated loan under which JP Intermediate B
LLC is a borrower were trading in the secondary market around 67.9
cents-on-the-dollar during the week ended Friday, February 17,
2023, according to Bloomberg's Evaluated Pricing service data.
The $450 million facility is a Term loan that is scheduled to
mature on November 20, 2025. About $360 million of the loan is
withdrawn and outstanding.
JP Intermediate B, LLC retails vitamins and nutritional
supplements. The Company serves customers in the United States.
K&N PARENT: S&P Upgrades ICR to 'CCC+' on Improved Liquidity
------------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on U.S.-based
K&N Parent Inc. to 'CCC+' from 'D' (default).
S&P said, "At the same time we assigned a 'B' issue-level rating
and '1' recovery rating (rounded estimate: 95%) to the new $60
million priority term loan due 2027 and assigned a 'CCC+'
issue-level rating and '3' recovery rating (rounded estimate: 50%)
to the term loan due 2027. We also withdrew our 'D' rating on the
second-lien debt due 2024 following the completion of the swap for
equity.
"The negative outlook reflects the risk that we could downgrade K&N
if the company's operating performance is weaker than expected
resulting in constrained liquidity, or if we expect the company
could engage in another distressed restructuring."
K&N Parent completed its distressed debt restructuring which
involved issuance of a new priority term loan, repayment of
immediate obligations, extension of debt maturities, and
substantial equitization of debt.
S&P said, "The upgrade reflects the repayment of the near-term
bridge obligation, extension of all debt maturities, and additional
liquidity support, though we expect the company's operating
performance to remain weak, liquidity to be tight, and the capital
structure to remain unsustainable. Following the completion of the
restructuring transaction, the company's capital structure now
consists of a new-money $60 million priority term loan and $113.2
million senior secured term loan, which is a reduction of about
$259 million in gross debt compared to pre-restructuring. S&P
Global Ratings-adjusted debt leverage was about 13x for the 12
months ended Dec. 31, 2022, pro forma for the restructuring
transaction, down from above 20x pre-restructuring. While leverage
is now considerably lower, we still consider this degree of
leverage to be unsustainably high, particularly given the current
economic backdrop. We believe the economy will enter a shallow
recession in 2023, with our economists forecasting domestic GDP to
decline 0.1% in 2023, and consumers will pull back on discretionary
spending, leading to a delay or trade-down in purchasing.
Therefore, we expect profitability to remain weak in fiscal 2023,
free cash flow to remain slightly negative, and for leverage to
remain elevated at 8x-9x.
"While the company has completed a major facility move and certain
inflationary costs are coming down, we have not yet seen tangible
evidence of margin improvement. We also note that the company will
face a weaker consumer discretionary spending environment this
year. Despite the company's premium positioning in some of its
products, it was unable to fully offset inflationary pressures
through pricing without significant volume declines in fiscal 2022
due to a pullback in consumer spending, leading to a roughly 10%
decline in 2022 sales. We expect further sales decline of about
2%-3% in 2023 driven by the weaker macroeconomic environment as
consumers continue to defer purchases or trade down to lower-priced
products. This will be partially offset by full absorption of
pricing actions enacted in back-half 2022 and new customer wins in
the industrial air filter end segment. We also expect profitability
will improve due to the completion of its Grand Prairie facility
move, resulting in higher fill rates as processes become more
efficient and the use of temporary laborers is reduced.
Furthermore, we expect the company to benefit from stabilizing
material costs and headcount reductions. As such, we expect S&P
Global Ratings-adjusted EBITDA margins of 11%-12% in fiscal 2023,
up from about 7% in 2022. This is well-below historical EBITDA
margins of the high-20% area and the company still needs to
establish a track record of consistent margin improvement. Finally,
if inflationary pressures persist into 2023, we believe the
company's ability to price is limited given that some end consumers
have become more price sensitive and conservative in their
purchasing behavior.
"Liquidity will be tight despite the cash infusion and reduction in
interest expense due to low earnings. We expect liquidity to
improve post-restructuring with sources over uses in excess of 1.2x
over the next 12 months, hence we've revised our liquidity
assessment to less than adequate from weak. Post-transaction close
the company will have about $31 million of cash on its balance
sheet, though the company will be governed by a minimum liquidity
covenant of $5 million. The company was able to reduce its cash
interest burden to about $21 million from about $44 million due to
the reduction in gross debt; however we expect interest expense to
rise through 2023 as the Fed continues hiking rates. We don't
forecast the company to generate free cash flow in 2023 as
earnings, though improving, will remain under pressure from weaker
consumer demand resulting in lower operating leverage. Given our
expectation for no cash flow and a volatile macroeconomic
environment, we believe the company's liquidity could deteriorate
quickly if operating conditions materially deteriorate beyond our
base case.
"The negative outlook reflects the risk that we could downgrade the
company if its operating performance fails to improve and liquidity
deteriorates such that we believe the company could default within
a year."
S&P could lower the ratings if it expects:
-- Liquidity to become constrained if operating performance
deteriorates due to declining sales, operating missteps, increasing
operating costs, or working capital mismanagement, resulting in
cash burn;
-- S&P believes there is risk the company could violate its
minimum liquidity covenant in the near term; or
-- If S&P believes the company could engage further distressed
debt restructuring.
S&P could revise the outlook to stable if:
-- The company establishes a track record of generating at least
breakeven or positive free operating cash flow through improved
operational performance; and
-- The company improves its liquidity position.
ESG credit indicators: E-2, S-2, G-3
S&P said, "Environmental factors have an overall neutral influence
on our credit rating analysis. While many of its products, like air
and oil filters, are dependent on the internal combustion engine,
it sells its parts in the aftermarket, the demand for its products
primarily stems from enthusiasts, and we expect it will take many
years for the car park to materially shift toward fully electric
vehicles, particularly in North America.
"Governance is a moderately negative consideration. Our assessment
of a highly leveraged financial risk profile reflects the company's
corporate decision-making that prioritizes the interests of its
controlling owners, which is in line with our view of most rated
entities owned by private-equity sponsors. Our assessment also
reflects private-equity owners' generally finite holding periods
and focus on maximizing shareholder returns."
KENAN ADVANTAGE: Moody's Ups CFR to B2 & Secured Bank Loans to B1
-----------------------------------------------------------------
Moody's Investors Service upgraded Kenan Advantage Group, Inc.'s
("Kenan") corporate family rating to B2 from B3 and probability of
default rating to B2-PD from B3-PD. Concurrently, Moody's upgraded
the ratings on Kenan's senior secured credit facilities to B1 from
B2 and the second lien term loan to Caa1 from Caa2. The outlook is
stable. Lastly, Moody's upgraded the senior secured credit facility
at Kenan Canada GP to B1 from B2 and assigned a stable outlook.
The upgrade of the CFR to B2 is based on Moody's expectation that
Kenan will maintain a well-balanced financial policy resulting in
debt-to-EBITDA around 4.0x and EBITDA margin of about 17% for
fiscal 2023. The company is demonstrating strong operating
performance with solid free cash flow growth and good liquidity,
despite softening economic conditions. Moody's further expects that
Kenan will continue to expand geographically and sustain adequate
product offering and end market diversification.
The stable outlook reflects Moody's expectations of sustained
positive free cash flow based on the contracted nature of its
businesses and solid expansion of its faster growing logistics and
food delivery businesses. Moody's also expects the company to
actively control costs in the face of a weakening macro
environment.
Upgrades:
Issuer: Kenan Advantage Group, Inc.
Corporate Family Rating, Upgraded to B2 from B3
Probability of Default Rating, Upgraded to B2-PD from B3-PD
Backed Senior Secured Revolving Credit Facility, Upgraded to B1
(LGD3) from B2 (LGD3)
Backed Senior Secured First Lien Term Loan B, Upgraded to B1
(LGD3) from B2 (LGD3)
Backed Senior Secured Second Lien Term Loan, Upgraded to Caa1
(LGD6) from Caa2 (LGD6)
Issuer: Kenan Canada GP
Backed Senior Secured Term Loan B1, Upgraded to B1 (LGD3) from B2
(LGD3)
Outlook Actions:
Issuer: Kenan Advantage Group, Inc.
Outlook, Changed To Stable From Positive
Issuer: Kenan Canada GP
Outlook, Assigned Stable
RATINGS RATIONALE
The ratings reflect Kenan's position as a leading transportation
service provider of liquid bulk products across the US and Canada.
Kenan's fuel delivery operations continue to perform well due to
stable fuel consumption in North America despite a slowing economy,
while its liquid food business benefits from stable end-market
demand. The company's competitive strength is its diversified
footprint and dedicated contract carriage model that underpins its
healthy margins and good liquidity. Moody's also expects increased
volume in fuel delivery to be bolstered by organic growth from
existing customers that will strengthen performance in 2023.
Lastly, as an operator of heavy-duty trucks with diesel engines,
Kenan is exposed to the environmental risk that emission
regulations will become more stringent, which could result in
higher costs with the transition to electric trucks.
Kenan is expected to maintain good liquidity. Moody's estimates
Kenan will have free cash flow of over $60 million in 2023 and have
a cash balance of approximately $65 million at year-end 2023.
Liquidity also benefits from a $150 million revolver that is used
primarily for letters of credit. As of September 2022, availability
under the revolver was $79 million, net of letters of credit.
Moody's expects free cash flow will support acquisition funding,
lessening the dependence on revolver borrowings for bolt-on
acquisitions. However, Kenan's free cash flow is volatile due to
seasonal working capital needs and capital expenditure requirements
to modernize and expand its truck fleet.
From a corporate governance perspective, event risk is high with
private equity ownership. The company faces corporate governance
risks given private equity ownership and its acquisitive nature,
which could further constrain the metrics if acquisitions are
funded with debt.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings could be upgraded if the company further diversifies its
revenue base away from the volatility associated with fuel
delivery, while improving operating margin above 6%. Debt-to-EBITDA
of around 4.0x and good liquidity would also be necessary for a
ratings upgrade.
The ratings could be downgraded if margins deteriorate, liquidity
weakens, including declining free cash flow, and/or debt-to-EBITDA
is expected to be above 5.5x . Debt funded acquisitions or
shareholder returns that increase debt and leverage could also
result in a downgrade.
The principal methodology used in these ratings was Surface
Transportation and Logistics published in December 2021.
Kenan is a provider of liquid bulk transportation and logistics
services to the fuels, chemicals, liquid food and merchant gas
markets. Kenan offers transportation services throughout the U.S.
and Canada employing a dedicated contract carriage model. Kenan is
owned by OMERS Private Equity, a manager of the private equity
investments of Canadian pension fund, Ontario Municipal Employees
Retirement System (OMERS). Revenue was about $2.4 billion for the
last twelve months ended September 30, 2022.
KEYWAY APARTMENT: A&G Accepting Bids for Apartment Complex
----------------------------------------------------------
In its capacity as real estate advisor for the Chapter 11 Trustee
of Keyway Apartment Rentals, LLC, A&G Real Estate Partners is now
accepting competing bids for a profitable 64-unit garden apartment
complex in Baltimore County.
The Trustee has a signed $5.7 million contract for the Keyway
Apartments from a stalking horse bidder, subject to higher and
better offers and Bankruptcy Court approval. Competing bids are due
by Feb. 24. A minimum competing offer of $5.85 million would
trigger an auction on Feb. 28.
Located at 123 Willow Spring Road in Dundalk, the
41,412-square-foot rental complex is comprised of three, two-story
brick veneer buildings on 1.89 acres. Units average approximately
550 square feet.
The property, which is 96.9% occupied, was built in 1941 and
underwent a complete renovation in 2017 that included interior
improvements like new appliances, granite countertops, and
flooring; new plumbing and electrical systems; roof and HVAC
replacements; and security system updates.
Situated in southeast Baltimore County, Keyway Apartments is
approximately seven miles from downtown Baltimore. Primary access
to the property is provided by Interstate-95/895, Interstate 695
(the Baltimore Beltway), and Route 40 (Pulaski Highway). The site
offers ingress and egress via entrances from Willow Spring Road,
Keyway and Kinship Road.
"The Keyway Apartments sale offers a unique opportunity for
investors to acquire a profitable, well-occupied rental complex in
a submarket with strong occupancy levels," said A&G Senior Managing
Director Mike Matlat. "And with the recent renovations, buyers can
hit the ground running on this well-located, high-visibility
property."
Keyway Apartment Rentals, LLC filed for Chapter 11 Protection in
the U.S. Bankruptcy Court for the District of Maryland (Case No.
22-13389-MMH) on June 21, 2022. The Trustee on the case is Patricia
B. Jefferson, Principal at Miles & Stockbridge.
For additional information, contact Mike Matlat at 631-465-9508, or
mike@agrep.com.
About Keyway Apartment Rentals
Keyway Apartment Rentals, LLC is a Maryland limited liability
company that owns a 63-unit residential apartment complex situated
upon three parcels of real property known as 113 Kinship Road, 122
Kinship Road, and 123 Willow Spring Road in Dundalk, Baltimore
County, Md.
Keyway sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Md. Case No. 22-13389) on June 21, 2022. In the
petition signed by its managing member, George Divel, III, the
Debtor disclosed $6,653,350 in assets and $4,252,151 in
liabilities.
Judge Michelle M. Harner oversees the case.
Joseph M. Selba, Esq., at Tydings and Rosenberg, LLP, is the
Debtor's legal counsel.
Patricia Jefferson, the Chapter 11 trustee appointed in the
Debtor's case, is represented by Miles & Stockbridge P.C.
KINTARA THERAPEUTICS: Posts $3.5 Million Net Loss in Second Quarter
-------------------------------------------------------------------
Kintara Therapeutics, Inc. has filed with the Securities and
Exchange Commission its Quarterly Report on Form 10-Q disclosing
a net loss of $3.45 million for the three months ended Dec. 31,
2022, compared to a net loss of $5.89 million for the three months
ended Dec. 31, 2021.
For the six months ended Dec. 31, 2022, the Company reported a net
loss of $8.05 million compared to a net loss of $11.86 million for
the same period in 2021.
The decreased net losses for the three and six months ended Dec.
31, 2022 compared to the three and six months ended Dec. 31, 2021
was largely due to lower research and development expenses as well
as lower general and administrative costs.
As of Dec. 31, 2022, the Company had $9.92 million in total assets,
$3.32 million in total liabilities, and $6.60 million in total
stockholders' equity.
As of Dec. 31, 2022, Kintara had cash and cash equivalents of
approximately $4.9 million.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1498382/000095017023002805/ktra-20221231.htm
About Kintara
Located in San Diego, California, Kintara Therapeutics, Inc.
(formerly DelMar Pharmaceuticals) is dedicated to the development
of novel cancer therapies for patients with unmet medical needs.
Kintara is developing two late-stage, Phase 3-ready therapeutics
for clear unmet medical needs with reduced risk development
programs. The two programs are VAL-083 for GBM and REM-001 for
CMBC.
Kintara reported a net loss of $22.66 million for the year ended
June 30, 2022, compared to a net loss of $38.30 million for the
year ended June 30, 2021. As of Sept. 30, 2022, the Company had
$13.21 million in total assets, $3.59 million in total liabilities,
and $9.62 million in total stockholders' equity.
San Francisco, CA-based Marcum LLP, the Company's auditor since
2019, issued a "going concern" qualification in its report dated
Sept. 27, 2022, citing that the Company has incurred significant
losses and needs to raise additional funds to meet its obligations
and sustain its operations. These conditions raise substantial
doubt about the Company's ability to continue as a going concern.
KNB HOLDINGS: Moody's Lowers CFR to C Amid Bankruptcy Filing
------------------------------------------------------------
Moody's Investors Service downgraded KNB Holdings Corporation's
Probability of Default Rating to D-PD from Caa3-PD following the
company's filing for protection under Chapter 11 of the U.S.
Bankruptcy Code on February 9, 2023. Moody's downgraded the
Corporate Family Rating to C from Caa3 and the senior secured first
lien term loan rating to C from Caa3. The outlook remains
negative.
Downgrades:
Issuer: KNB Holdings Corporation
Corporate Family Rating, Downgraded to C from Caa3
Probability of Default Rating, Downgraded to D-PD
from Caa3-PD
Senior Secured First Lien Term Loan, Downgraded to C (LGD5)
from Caa3 (LGD3)
Outlook Actions:
Issuer: KNB Holdings Corporation
Outlook, Remains Negative
RATINGS RATIONALE
KNB's unsustainable high leverage, negative free cash flow, and
severe volume declines across the home decorating products industry
made it difficult for the company to address its upcoming
maturities in April 2024 and October 2024. The company's Chapter 11
filing resulted in the downgrade of KNB Holdings Corporation PDR to
D-PD. The CFR and individual instrument rating on the company's
senior secured first lien term loan were downgraded reflecting
Moody's expectation of very low recovery. KNB's $75 million
asset-based revolving credit facility and second lien term loan are
not rated. Moody's also considers the company's April 2020
conversion of interest on the second lien term loan to pay-in-kind
from cash to be a distressed exchange default.
Subsequent to the rating action, Moody's will withdraw all the
ratings of KNB Holdings Corporation.
The principal methodology used in these ratings was Consumer
Durables published in September 2021.
KNB Holdings Corporation is the indirect parent of Nielsen &
Bainbridge, LLC, based in Austin, Texas. Nielsen & Bainbridge is a
designer and manufacturer of a wide variety of home decor products
such as indoor and outdoor soft goods, wall decor and lighting. Its
products are sold primarily in North America and to a lesser extent
in Europe. The company was acquired by private equity firm Sycamore
Partners in April 2017 and does not file public financial
statements. Annual revenue is about $515 million.
KNOW LABS: Posts $3.8 Million Net Loss in First Quarter
-------------------------------------------------------
Know Labs, Inc. has filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $3.82 million on $0 of revenue for the three months ended Dec.
31, 2022, compared to a net loss of $5.35 million on $4.35 million
of revenue for the three months ended Dec. 31, 2021.
As of Dec. 31, 2022, the Company had $10.71 million in total
assets, $3.66 million in total current liabilities, $45,993 in
total non-current liabilities, and $7.01 million in total
stockholders' equity.
The Company has cash and cash equivalents of $9,680,272 and net
working capital of $8,277,336 (exclusive of convertible notes
payable) as of Dec. 31, 2022. The Company anticipates that it will
record losses from operations for the foreseeable future. The
Company believes that it has enough available cash to operate until
at least Feb. 15, 2024. As of Dec. 31, 2022, the Company's
accumulated deficit was $105,220,597. The Company has had limited
capital resources and intends to seek additional cash via equity
and debt offerings.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1074828/000165495423001717/know_10q.htm
About Know Labs
Know Labs, Inc. is focused on the development and commercialization
of proprietary biosensor technologies which, when paired with its
AI deep learning platform, are capable of uniquely identifying and
measuring almost any material or analyte using electromagnetic
energy to detect, record, identify and measure the unique
"signature" of said materials or analytes. Know Labs call this its
"Bio-RFID" technology platform, when pertaining to radio and
microwave spectroscopy, and its "ChromaID" technology platform,
when pertaining to optical spectroscopy. The data obtained with
the Company's biosensor technology is analyzed with its trade
secret algorithms which are driven by its AI deep learning
platform.
Know Labs reported a net loss of $20.07 million for the year ended
Sept. 30, 2022, a net loss of $25.36 million for the year ended
Sept. 30, 2021, a net loss of $13.56 million for the year ended
Sept. 30, 2020, and a net loss of $7.61 million for the year ended
Dec. 31, 2019. As of Sept. 30, 2022, the Company had $13.76
million in total assets, $3.81 million in total current
liabilities, $87,118 in total non-current liabilities, and $9.86
million in total stockholders' equity.
LARRET PROPERTIES: Hires Gold Weems Bruser Sues as Legal Counsel
----------------------------------------------------------------
Larret Properties Unlimited, LLC and its affiliates received
approval from the U.S. Bankruptcy Court for the Western District of
Louisiana to employ Gold Weems Bruser Sues & Rundell, APLC to
handle their Chapter 11 cases.
The firm will be paid at these rates:
Shareholders $300 to $435 per hour
Associates $265 to $310 per hour
Paralegals $90 per hour
In addition, the firm will be reimbursed for out-of-pocket expenses
incurred.
The retainer fee is $20,000.
Bradley Drell, Esq., a partner at Gold Weems Bruser Sues & Rundell,
disclosed in a court filing that his firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Bradley L. Drell, Esq.
Gold Weems Bruser Sues & Rundell, APLC
P.O. Box 6118
Alexandria, LA 71307-6118
Tel: (318) 445-6471
Fax: (318) 445-6476
Email: bdrell@goldweems.com
About Larret Properties Unlimited
Larret Properties Unlimited, LLC, a company in Farmerville, La.,
filed its voluntary petition for Chapter 11 protection (Bankr. W.D.
La. Case No. 23-30074) on Jan. 24, 2023, with $1,005,000 in assets
and $1,003,287 in liabilities. Thomas Kendal Terral, member and
manager, signed the petition.
Judge John S. Hodge oversees the case.
Bradley L. Drell, Esq., at Gold Weems Bruser Sues & Rundell, APLC
serves as the Debtor's legal counsel.
LEAFBUYER TECHNOLOGIES: Posts $95K Net Income in Second Quarter
---------------------------------------------------------------
Leafbuyer Technologies, Inc. has filed with the Securities and
Exchange Commission its Quarterly Report on Form 10-Q disclosing
a net income of $95,397 on $1.34 million of revenue for the three
months ended Dec. 31, 2022, compared to a net loss of $1.37 million
on $923,829 of revenue for the three months ended Dec. 31, 2021.
For the six months ended Dec. 31, 2022, the Company reported a net
loss of $114,576 on $2.47 million of revenue compared to a net
income of $1.58 million on $1.77 million of revenue for the six
months ended Dec. 31, 2021.
As of Dec. 31, 2022, the Company had $1.97 million in total assets,
$3.23 million in total liabilities, and a total stockholders'
deficit of $1.26 million.
Leafbuyer stated, "The ability to continue as a going concern is
dependent upon the Company generating profitable operations in the
future or obtaining the necessary financing to meet its obligations
and repay its liabilities arising from normal business operations
when they come due. Management intends to finance operating costs
over the next twelve months from the date of the issuance of these
unaudited condensed consolidated financial statements with existing
cash on hand or the private placement of common stock or obtaining
debt financing. There is, however, no assurance that the Company
will be able to raise any additional capital through any type of
offering on terms acceptable to the Company, as existing cash on
hand will be insufficient to finance operations over the next
twelve months."
At Dec. 31, 2022 the Company had $298,243 in cash and cash
equivalents.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1643721/000147793223001023/lbuy_10q.htm
About Leafbuyer
Leafbuyer Technologies, Inc. is a marketing technology company for
the cannabis industry and is an online cannabis resource.
Lakewood, Colorado-based B F Borgers CPA PC, the Company's auditor
since 2017, issued a "going concern" qualification in its report
dated Sept. 27, 2022, citing that the Company has suffered
recurring losses from operations and has a significant accumulated
deficit. In addition, the Company continues to experience negative
cash flows from operations. These factors raise substantial doubt
about the Company's ability to continue as a going concern.
Leafbuyer reported net income of $955,695 for the year ended June
30, 2022, compared to a net loss of $5.03 million for the year
ended June 30, 2021. As of Sept. 30, 2022, the Company had $2.03
million in total assets, $3.51 million in total liabilities, and a
total stockholders' deficit of $1.47 million.
LEGACY LOFTS: U.S. Trustee Unable to Appoint Committee
------------------------------------------------------
The U.S. Trustee for Region 7 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of Legacy Lofts on St. Mary's, LLC.
About Legacy Lofts on St. Mary's
Legacy Lofts on St. Mary's, LLC is a single asset real estate (as
defined in 11 U.S.C. Section 101(51B)).
Legacy Lofts on St. Mary's filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Texas Case No.
22-51377) on Dec. 5, 2022, with $50,000 in assets and $1 million to
$10 million in liabilities. Robert T. Melvin, managing member and
chief executive officer, signed the petition.
Judge Craig A. Gargotta presides over the case.
Allen M. DeBard, Esq., at Langley & Banack, Inc. represents the
Debtor as counsel.
LIVEONE INC: Posts $2.6 Million Net Loss in Third Quarter
---------------------------------------------------------
LiveOne, Inc. has filed with the Securities and Exchange Commission
its Quarterly Report on Form 10-Q disclosing a net loss of $2.55
million on $27.31 million of revenue for the three months ended
Dec. 31, 2022, compared to a net loss of $11.79 million on $32.89
million of revenue for the three months ended Dec. 31, 2021.
For the nine months ended Dec. 31, 2022, the Company reported a net
loss of $4.61 million on $74.06 million of revenue compared to a
net loss of $35.08 million on $93.58 million of revenue for the
nine months ended Dec. 31, 2021.
As of Dec. 31, 2022, the Company had $66.57 million in total
assets, $78.88 million in total liabilities, and a total
stockholders' deficit of $12.31 million.
LiveOne stated, "The Company's principal sources of liquidity have
historically been its debt and equity issuances and its cash and
cash equivalents (which cash, cash equivalents and restricted cash
amounted to $8.5 million as of Dec. 31, 2022). As reflected in its
condensed consolidated financial statements included elsewhere
herein, the Company has a history of losses, with the exception of
net income of $1.3 million during the quarter ended June 30, 2022
and had a working capital deficiency of $19.7 million as of Dec.
31, 2022. These factors, among others, raise substantial doubt
about the Company's ability to continue as a going concern within
one year from the date that these financial statements are filed."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1491419/000121390023011502/f10q1222_liveoneinc.htm
About LiveOne
Headquartered in Los Angeles, California, LiveOne, Inc. (NASDAQ:
LVO) (formerly known as LiveXLive Media, Inc.) is a creator-first,
music, entertainment and technology platform focused on delivering
premium experiences and content worldwide through memberships and
live and virtual events.
LiveOne reported a net loss of $43.91 million for the year ended
March 31, 2022, compared to a net loss of $41.82 million for the
year ended March 31, 2021. As of Sept. 30, 2022, the Company had
$66.09 million in total assets, $76.24 million in total
liabilities, and a total stockholders' deficit of $10.15 million.
Los Angeles, California-based BDO USA, LLP, the Company's former
auditor, issued a "going concern" qualification in its report dated
June 29, 2022, citing that the Company has suffered recurring
losses from operations, negative cash flows from operating
activities and has a net capital deficiency that raise substantial
doubt about its ability to continue as a going concern.
LTL MANAGEMENT: Exclusivity Period Extended to March 21
-------------------------------------------------------
The U.S. Bankruptcy Court for the District of New Jersey extended
the time LTL Management, LLC can keep exclusive control of its
Chapter 11 case, giving the company until March 21 to file a
bankruptcy plan and until May 22 to solicit votes on that plan.
Originally, the company was due to file a plan on Feb. 15 and
solicit acceptances on April 17.
The court extended the exclusivity periods after it adjourned to
March 20 the hearing on the motion filed by LTL Management to
extend its exclusive right to file a plan and the motion filed by
the official talc claimants' committee to terminate such right.
About LTL Management
LTL Management, LLC, is a subsidiary of Johnson & Johnson (J&J),
which was formed to manage and defend thousands of talc-related
claims and oversee the operations of Royalty A&M. Royalty A&M owns
a portfolio of royalty revenue streams, including royalty revenue
streams based on third-party sales of LACTAID, MYLANTA/MYLICON and
ROGAINE products.
LTL Management filed a petition for Chapter 11 protection (Bankr.
W.D.N.C. Case No. 21-30589) on Oct. 14, 2021. The case was
transferred to New Jersey (Bankr. D.N.J. Case No. 21-30589) on Nov.
16, 2021. The Hon. Michael B. Kaplan is the case judge. At the
time of the filing, the Debtor was estimated to have $1 billion to
$10 billion in both assets and liabilities.
The Debtor tapped Jones Day and Rayburn Cooper & Durham, P.A., as
bankruptcy counsel; King & Spalding, LLP and Shook, Hardy & Bacon
LLP as special counsel; McCarter & English, LLP as litigation
consultant; Bates White, LLC as financial consultant; and
AlixPartners, LLP as restructuring advisor. Epiq Corporate
Restructuring, LLC, is the claims agent.
An official committee of talc claimants was formed in the Debtor's
Chapter 11 case on Nov. 9, 2021. On Dec. 24, 2021, the U.S.
Trustee for Regions 3 and 9 reconstituted the talc claimants'
committee and appointed two separate committees: (i) the official
committee of talc claimants I, which represents ovarian cancer
claimants, and (ii) the official committee of talc claimants II,
which represents mesothelioma claimants.
The official committee of talc claimants I tapped Genova Burns LLC,
Brown Rudnick LLP, Otterbourg PC and Parkins Lee & Rubio LLP as its
legal counsel. Meanwhile, the official committee of talc claimants
II is represented by the law firms of Cooley LLP, Bailey Glasser
LLP, Waldrep Wall Babcock & Bailey PLLC, Massey & Gail LLP, and
Sherman Silverstein Kohl Rose & Podolsky P.A.
About Johnson & Johnson
Johnson & Johnson is an American multinational corporation founded
in 1886 that develops medical devices, pharmaceuticals, and
consumer packaged goods. It is the world's largest and most broadly
based healthcare company.
Johnson & Johnson is headquartered in New Brunswick, New Jersey,
the consumer division being located in Skillman, New Jersey. The
corporation includes some 250 subsidiary companies with operations
in 60 countries and products sold in over 175 countries.
The corporation had worldwide sales of $82.6 billion in 2020.
LUXE SPACES: Court OKs Cash Collateral Access Thru March 1
----------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Louisiana
authorized Luxe Spaces, LLC to use cash collateral on a further
interim basis in accordance with the budget, with a 10% variance,
through March 1, 2023.
As previously reported by the Troubled Company Reporter, the Debtor
requires access to cash collateral to meet necessary expenses
incurred in the ordinary course of its business while it
restructures and reorganizes its indebtedness and business in a
manner that maximizes value and is fair and equitable to all
parties-in-interest.
It is not clear who has an interest in cash collateral. The Debtor
ran a UCC search prior to the Petition Date, which revealed that
multiple financing statements had been filed against the Debtor.
The earliest was filed on October 19, 2021, with UCC-1 filing
number of 17-1490865. However, the secured party is described as
"First Corporate Solutions as Representative." Most of the
so-called secured parties appear to be service of process companies
such as "Corporation Service Company, as Representative."
The Debtor has ordered the original filings, but has not yet
received them. Accordingly, the Debtor proposes to make adequate
protection payments to the Subchapter V Trustee, who will hold the
payments in escrow until the first priority lienholder is
identified. The Subchapter V Trustee, pending court authorization,
would disburse escrowed adequate protection payments to whoever is
the First Priority Secured Creditor.
As adequate protection, the secured parties are granted replacement
security interests in and liens on all post-petition accounts of
the Debtor on which secured parties hold valid and perfected liens
as of January 18, 2023.
As an additional form of adequate protection the Debtor will
continue to remit $1,150 per week.
The Subchapter V Trustee is directed to deposit the Adequate
Protection payment into an account with an authorized depositary
for handling debtor-in-possession funds.
The Court said the Debtor cannot use cash collateral to compensate
any present or former insider within the meaning of 11 U.S.C.
section 101(31) prior to the scheduled hearing. This prohibition
includes any form of compensation, including but not limited to
contract labor.
The hearing on the matter is set for March 1, 2023 at 2 p.m.
A copy of the Court's order and the Debtor's budget is available at
https://bit.ly/3ZiIE3F from PacerMonitor.com.
The Debtor projects total payments, on a weekly basis, as follows:
$96,100 for January 28, 2023;
$145,623 for February 4, 2023;
$58,986 for February 11, 2023; and
$57,935 for February 18, 2023.
About Luxe Spaces, LLC
Luxe Spaces, LLC is a Baton Rouge, LA-based corporate housing
company. Luxe Spaces leases apartments, houses, condos, townhomes,
etc. and then sublets them to, among others, film and televisions
production companies, governmental agencies such as FEMA, and
private businesses looking to temporarily house their executives.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. La. Case No. 23-10042) on January 18,
2023. In the petition signed by Stephanie R. Clarke, manager, the
Debtor disclosed up to $500,000 in assets and up to $1 million in
liabilities.
Judge Michael A. Crawford oversees the case.
Ryan J. Richmond, Esq., at Sternberg, Naccari & White, LLC, is the
Debtor's legal counsel.
MARCH ON HOSPITALITY: Seeks to Hire Forshey & Prostok as Counsel
----------------------------------------------------------------
March On Hospitality, LLC seeks approval from the U.S. Bankruptcy
Court for the Northern District of Texas to employ Forshey &
Prostok, LLP as its legal counsel.
The firm's services include:
(a) advising the Debtor of its rights, powers and duties in
the continued operation and management of its business and assets;
(b) advising the Debtor concerning, and assisting in the
negotiation and documentation of, agreements, debt restructurings,
and related transactions;
(c) reviewing the nature and validity of liens asserted
against the property of the Debtor and advising the Debtor
concerning the enforceability of such liens;
(d) advising the Debtor concerning the actions that it might
take to collect and to recover property for the benefit of its
estate;
(e) preparing legal papers;
(f) advising the Debtor concerning, and preparing responses
to, legal papers that may be filed and served in its Chapter 11
case;
(g) counseling the Debtor in connection with the formulation,
negotiation and promulgation of a plan of reorganization and
related documents;
(h) other necessary legal services.
The firm will be paid at these rates:
J. Robert Forshey $675 per hour
Suzanne K. Rosen $600 per hour
Other Attorneys $325 to $525 per hour
Paralegals $175 to $225 per hour
In addition, the firm will receive reimbursement for out-of-pocket
expenses incurred.
The retainer is $30,000..
Suzanne Rosen, Esq., a partner at Forshey & Prostok, 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:
J. Robert Forshey, Esq.
Suzanne K. Rosen, Esq.
Forshey & Prostok, LLP
777 Main St., Suite 1550
Fort Worth, TX 76102
Telephone: 817-877-8855
Facsimile: 817-877-4151
Email: bforshey@forsheyprostok.com
srosen@forsheyprostok.com
About March on Hospitality
March on Hospitality, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Texas Case No. 23-40140) on Jan.
17, 2023, with up to $10 million in both assets and liabilities.
Jude Mark X. Mullin oversees the case.
Suzanne K. Rosen, Esq., at Forshey & Prostok, LLP, represents the
Debtor as legal counsel.
MARKAM TRANSPORT: Seeks to Hire Bultynck & Co as Accountant
-----------------------------------------------------------
Markam Transport, Inc. seeks approval from the U.S. Bankruptcy
Court for the Eastern District of Michigan to employ Bultynck &
Co., PLLC as its accountant.
The Debtor requires an accountant to:
a. assist in preparing and filing corporate tax returns for
the 2022 tax year, as well as any other pre-bankruptcy or
post-petition tax returns or amendments thereto;
b. assist the Debtor in recovering any ERTC to which the
Debtor is entitled;
c. assist the Debtor in satisfying its bankruptcy reporting
requirements and, if appropriate, the exhibits to its plan of
liquidation; and
d. perform other necessary tasks.
The firm will get 10 percent of the gross amount of any recovered
ERTC before any possible setoff by the Internal Revenue Service for
any claim of the agency.
As disclosed in court filings, Bultynck is "disinterested" within
the meaning of Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Christine Bombard, CPA, CGMA
Bultynck and Co., PLLC
15985 Canal Rd # A
Clinton Twp, MI 48038
Phone: +1 586-286-7300
Email: admin@bultynck.com
About Markam Transport
Markam Transport, Inc. is a company in Grosse Pointe, Mich., which
operates in the general freight trucking industry.
Markam Transport sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Mich. Case No. 22-48936) on Nov. 14,
2022, with up to $10 million in both assets and liabilities. Andrew
Mark Donatiello, president of Markam Transport, signed the
petition.
Schafer and Weiner, PLLC and Bultynck & Co., PLLC serve as the
Debtor's legal counsel and accountant, respectively.
MATHESON FLIGHT: Hearing on Exclusivity Extension Set for Feb. 22
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of California is
set to hold a hearing on Feb. 22 to consider the motion filed by
Matheson Flight Extenders, Inc. and its affiliates to extend the
time they can keep exclusive control of their bankruptcy cases.
The motion seeks to extend the exclusive period for the companies
to file a Chapter 11 plan to Feb. 28, and solicit votes on the plan
to May 3.
The companies have been developing plan projections as negotiations
with the U.S. Postal Service have progressed but those projections
cannot be finalized until the agreement with the agency is reached,
according to their attorney, Kevin Coleman, Esq., at Nuti Hart,
LLP.
"Additional time is required to complete a key piece of information
creditors will need to assess whether to support confirmation of
the plan," Ms. Coleman said.
About Matheson
Matheson Flight Extenders, Inc. and Matheson Postal Services, Inc.
provide short and long-haul transportation, logistics and ground
handling services. The companies are based in Sacramento, Calif.
Matheson Flight Extenders and Matheson Postal Services sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D.
Calif. Case Nos. 22-21148 and 22-21149) on May 5, 2022. On July 14,
2022, Matheson Trucking, Inc., an affiliate, filed for Chapter 11
protection (Bankr. E.D. Calif. Case No. 22-21758). The cases are
jointly administered under Case No. 22-21148.
In the petitions signed by Charles J. Mellor, chief restructuring
officer, the Debtors disclosed up to $50 million in both assets and
liabilities.
Judge Christopher M. Klein oversees the cases.
Nuti Hart, LLP and Development Specialists, Inc. serve as the
Debtors' bankruptcy counsel and financial advisor, respectively.
Donlin, Recano & Company, Inc. is the Debtors' claims, noticing and
solicitation agent, and administrative advisor.
The U.S. Trustee for Region 17 appointed an official committee of
unsecured creditors in the Debtors' cases. The committee is
represented by Felderstein Fitzgerald Willoughby Pascuzzi & Rios,
LLP.
MAVERICK GAMING: $310M Bank Debt Trades at 24% Discount
-------------------------------------------------------
Participations in a syndicated loan under which Maverick Gaming LLC
is a borrower were trading in the secondary market around 75.8
cents-on-the-dollar during the week ended Friday, February 17,
2023, according to Bloomberg's Evaluated Pricing service data.
The $310 million facility is a Term loan that is scheduled to
mature on September 7, 2026. The amount is fully drawn and
outstanding.
Maverick Gaming LLC provides gaming, hospitality, and entertainment
services. The Company offers slot machines, table games, and hotel
rooms. Maverick Gaming serves customers in the United States.
MED PARENTCO: S&P Downgrades ICR to 'CCC+', Outlook Negative
------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on optical
retailer MED ParentCo L.P. (operating as MyEyeDr.) to 'CCC+' from
'B-' and its issue-level rating on the company's revolving credit
facility and first-lien term loan to 'CCC+' from 'B-'. The '3'
recovery rating is unchanged.
The negative outlook reflects the potential for a lower rating if
liquidity becomes more constrained than we anticipate or if a
distressed exchange appears more likely.
S&P said, "We expect MED ParentCo's operating performance and
credit metrics will be challenged as it works through acquisition
integrations. MED ParentCo has grown rapidly in recent years
through acquisitions. The pace at which acquisitions have been
integrated into the company has underperformed our previous
forecasts. At this stage, we expect the company to scale back its
merger and acquisition (M&A) activity and focus on integrating
acquired businesses. The company continues to exhibit strong
revenue growth supported by positive same-store sales. However, S&P
Global Ratings-adjusted EBITDA margin has compressed and continues
to fall short of our expectations. As a result, the company has an
EBITDA interest coverage ratio of about 1x. YTD Office contribution
margin declined to 22.3% from 26% year-over-year in the quarter
ended September 2022 due to lower gross margin, elevated labor and
marketing expenses, and a higher mix of newly acquired stores. We
have revised our base case forecast to reflect our view that
profitability will continue to be constrained as the company
integrates acquisitions. We expect operating margins will improve,
but at a slower pace than previous forecasts. Furthermore, the
company has deferred acquisition payments of about $64 million due
in 2023. We believe the company will need to draw on its revolver
to support capital expenditures and make deferred acquisition
payments.
"MED ParentCo's debt-funded acquisition strategy and constrained
S&P Global Ratings-adjusted EBITDA margin has led to substantially
high S&P Global Ratings-adjusted leverage. We expect leverage to
remain high in the near term due to the constrained EBITDA and
increased debt from revolver usage. We believe the company will
gradually improve its leverage by pausing acquisitions and
expanding its EBITDA base as acquired businesses are integrated and
operating margins improve. Our base case projects negative FOCF on
a reported basis in 2022 and 2023 due to the company's deferred
acquisition payments and weak interest coverage. That said, we
expect the company will modestly expand its EBITDA and EBITDA
margin in 2023 but that its leverage will remain high.
"The negative outlook reflects our belief that liquidity will
weaken as the company works to integrate past acquisitions. Given
our expectation for negative FOCF, we believe the company will rely
on its revolver in 2023 to fund capital expenditures and make
deferred acquisition payments. While we expect a modest improvement
in performance from acquisition integration during the next 12
months, we do not believe these benefits will materialize in the
near term. As a result, we anticipate that the company's liquidity
position will deteriorate over the next 12 months. The revolver due
in 2024 will become current in August 2023. We believe the company
could have difficulty extending this facility in the future if it
is unable to improve internally generated cash flow and credit
metrics.
"The negative outlook on MED ParentCo reflects the possibility that
we could lower the rating if MED were unable to improve cash flow
and interest coverage metrics, which would increase its dependance
on the revolver maturing in 2024 and increase the likelihood of a
debt restructuring."
S&P could lower its rating on MED ParentCo if:
-- S&P did not believe operating performance after the acquisition
integrations would improve to levels that support the company's
existing capital structure, increasing the likelihood of a default
or restructuring that we would view as tantamount to default; or
-- S&P envisioned a specific default scenario over the next 12
months, including the possibility of a distressed exchange,
near-term liquidity crisis, or violation of its springing
fixed-charge coverage ratio.
S&P could revise its outlook to stable or raise its rating on MED
ParentCo if:
-- Operating margins and performance improved meaningfully;
-- S&P believed the company would be able to fund capital
expenditures and make acquisition payments with operational cash
flows; and
-- The company successfully extended or refinanced its revolving
credit facility.
ESG credit indicators: E-2, S-2, G-3
S&P said, "Governance is a moderately negative consideration, as is
the case for most rated entities owned by private-equity sponsors.
We believe MED ParentCo L.P.'s highly leveraged financial risk
profile points to corporate decision-making that prioritizes the
interests of the controlling owners. This also reflects the
generally finite holding periods and a focus on maximizing
shareholder returns. We have revised down our view of the company's
strategic positioning given the pace of acquisition integrations
and our overall view that the company has not yet grown into its
capital structure."
MERIDIAN HOLDING: Seeks to Hire Frank M. Wolff Law as Attorney
--------------------------------------------------------------
Meridian Holding Group, LLC seeks approval from the U.S. Bankruptcy
Court for the Middle District of Florida to hire Frank M. Wolff
Law, P.A. as its attorneys.
The firm's services include:
(a) advising as to the Debtor’s rights and duties in this
case;
(b) preparing pleadings related to this case, including a plan
of reorganization; and
(c) taking any and all other necessary action incident to the
proper preservation and administration of this estate.
The firm received a retainer in the amount of $14,009.10.
As disclosed in the court filings, Frank M Wolff represents no
interest adverse to the Debtor or to the estate in matters upon
which it is to be engaged.
The firm can be reached through:
Frank M. Wolff, Esq.
Frank M Wolff Law, P.A.
P.O. Box 850
Oakland, FL 34760
Tel: (407) 701 9109
Email: frankmwolff@gmail.com
About Meridian Holding Group, LLC
Meridian Holding Group, LLC filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla. Case No.
23-00388) on Jan. 31, 2023. The petition was signed by Robert
Manners as manager. At the time of filing, the Debtor estimated $10
million to $50 million in assets and $1 million to $10 million in
liabilities. Frank Wolff, Esq. at the law firm of Frank M. Wolff
Law, P.A. represents the Debtor as counsel.
MILK SPECIALTIES: Moody's Withdraws 'B2' CFR on Debt Repayment
--------------------------------------------------------------
Moody's Investors Service has withdrawn all ratings for Milk
Specialties Company including the B2 corporate family rating and
the B2-PD probability of default rating. At the time of withdrawal,
the outlook was stable.
Withdrawals:
Issuer: Milk Specialties Company
Corporate Family Rating, Withdrawn, previously rated B2
Probability of Default Rating, Withdrawn, previously rated B2-PD
Senior Secured Bank Credit Facility, Withdrawn, previously rated
B2 (LGD3)
Outlook Actions:
Issuer: Milk Specialties Company
Outlook, Changed To Rating Withdrawn From Stable
RATINGS RATIONALE
Moody's has withdrawn the ratings because Milk Specialties' debt
previously rated by Moody's has been fully repaid. This follows the
sale of American Securities LLC's 100% stake in Milk Specialties to
Butterfly Equity.
Milk Specialties Company is a leading independent manufacturer of
whey and specialty dairy protein ingredients for the sports
nutrition, health and wellness, infant formula, food manufacturing
and animal nutrition end markets.
MOUNTAIN MOVING: Gets OK to Hire D. Craig Bookkeeping as Accountant
-------------------------------------------------------------------
Mountain Moving, LLC received approval from the U.S. Bankruptcy
Court for the Western District of Virginia to employ D. Craig
Bookkeeping as its accountant.
The Debtor requires an accountant to prepare its 2022 federal and
state income tax returns and provide other accounting services
during the pendency of its Chapter 11 bankruptcy case.
The firm will be paid a flat fee of $500 for tax return preparation
and $30 per hour for other accounting services.
As disclosed in court filings, D. Craig Bookkeeping is a
"disinterested person" within the meaning of Section 101(14) of the
Bankruptcy Code.
The firm can be reached at:
Doris Craig
D. Craig Bookkeeping
4562 Lonesome Lane
Elkton, VA 22827
Tel: (540) 560-6926
Email: bookkeeping.dcraig@gmail.com
About Mountain Moving
Mountain Moving, LLC, a Virginia limited liability company,
provides freight transport services on a regional basis. Its sole
member is Thomas Powell.
Mountain Moving sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Va. Case No. 22-50561) on Dec. 16,
2022, with up to $100,000 in assets and up to $1 million in
liabilities.
Judge Rebecca B. Connelly oversees the case.
Hannah W. Hutman, Esq., at Hoover Penrod, PLC and D. Craig
Bookkeeping are the Debtor's legal counsel and accountant,
respectively.
MOUNTAINSKY LANDSCAPING: Taps Overturf McGath as Special Counsel
----------------------------------------------------------------
MountainSky Landscaping, LLC seeks approval from the U.S.
Bankruptcy Court for the District of Colorado to employ Overturf
McGath & Hull, P.C. as its special counsel.
The firm will represent the Debtor in the following civil
lawsuits:
a) John Stevens et al. v. Mountain Sky Landscaping LLC, et
al., Boulder District Court, Case No. 22CV30208; and
b) Richard and Michelle Hylton v. MountainSky Landscaping LLC,
et al., Douglas County District Court, Case No. 22CV30537.
Overturf will bill Liberty Mutual Insurance, the Debtor's insurance
carrier, for the legal services and Liberty Mutual will remit
payment to the firm accordingly.
As disclosed in court filings, Overturf is a "disinterested person"
within the meaning of Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Jason P. Rietz, Esq.
Overturf McGath & Hull, P.C.
625 E 16th Ave Suite 100
Denver, CO 80203
Phone: +1 303-860-2848
Email: mco@omhlaw.com
About MountainSky Landscaping
MountainSky Landscaping, LLC is a company based in Fort Lupton,
Colo., which offers complete outdoor living and gardening designs
for residential and commercial sectors.
MountainSky filed a voluntary petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. D. Colo. Case No. 22-12744) on July
26, 2022, with $100,000 to $500,000 in assets and $1 million to $10
million in liabilities. The Debtor has elected to proceed under
Subchapter V of Chapter 11. Joli A. Lofstedt is the Subchapter V
trustee.
Judge Kimberley H. Tyson oversees the case.
The Debtor tapped Wadsworth Garber Warner Conrardy, P.C. as
bankruptcy counsel; Greenleaf Ruscitti, LLP and Overturf McGath &
Hull, P.C. as special counsels; and Harrison Advisory as forensic
accountant.
NATIONAL PHARMACY: Files Emergency Bid to Use Cash Collateral
-------------------------------------------------------------
National Pharmacy Acquisition, LLC d/b/a National Infusion
Services, et al. ask the U.S. Bankruptcy Court for the Middle
District of Louisiana for authority to use cash collateral and
provide adequate protection.
The Debtor requires the use of cash collateral to pay expenses
incurred through its operation during the course of the Subchapter
V Chapter 11 proceeding.
The Debtor entered into a business loan agreement with Capital One,
National Association, which included a revolving line of credit
with a maximum amount of principal in the amount of $650,000 and a
term-loan agreement in the original principal amount of $3.6
million. Capital One claims the Loans are secured, in part, by a
mortgage over the Debtor's principal place of business located at
5344 Brittany Drive, Baton Rouge, Louisiana, as well as a perfected
security interest in all the Debtor's inventory, equipment,
accounts receivable, general intangibles, fixtures, instruments and
chattel paper.
Capital One filed its UCC financing statement on October 3, 2013,
file number 17-1395380, with collateral defined as all accounts
receivable, inventory and general intangibles; a continuation of
said financing statement was filed on May 4, 2018.
In addition, it filed a UCC financing statement on February 19,
2015, file number 17-1412315, with collateral defined as all
accounts receivable, inventory and general intangibles; a
continuation of said financing statement was filed on January 2,
2020.
Finally, Capital One filed a UCC financing statement on February
19, 2015, file number 17-1412316, with collateral defined as all
equipment, fixtures, instruments and chattel paper; a continuation
of said financing statement was filed on September 6, 2019.
In addition, the Loans are guaranteed by Sharon L. LeBouef, Jeffrey
Adams, and James LeBouef pursuant to the Unconditional Guaranty
Agreements or Commercial Guaranty agreements executed in connection
with each of the Loans.
In addition to the Capital One financing statements, a Louisiana
Secretary of State UCC filing search resulted the following
additional parties having an alleged interest in the accounts or
accounts receivable of the Debtor:
a. Secured Party: McKesson Corporation and its Affiliates;
Filing Date: February 5, 2021
b. Secured Party: Integrated Commercialization Solutions,
Inc.; Filing Date: September 5, 2015, continuation filed June 15,
2020
c. Secured Party: US Small Business Administration; Filing
Date: July 27, 2020
d. Secured Party: Cardinal Health; Filing Date: July 30, 2019
e. Secured Party: National Funding; Date of Filing unknown;
Date of Contract: July 7, 2022.
The Additional Secured Parties are not entitled to adequate
protection as these liens are inferior to that of Capital One and
there is no value available to secure any portion of the debts due
to them in the cash collateral.
After regular payments made through July 2021 for the SBA Loan and
regular payments made through September 2021 for the Line of
Credit, the total indebtedness now due to Capital One is
approximately $1.7 million on the SBA Loan and $545,618 on the Line
of Credit. The estimated value of the accounts receivable
($653,486.42) and inventory ($311,239) as of the Petition date is
$964,726. The current amount held in the Debtor's accounts at
Capital One and Chase is approximately $7,000.
Accordingly, there is no value in the accounts receivable or
inventory for any other creditor and the Debtor intends to request
under Section 506 that the Court determine that each of the other
creditors allegedly holding a security interest in AR and inventory
are wholly unsecured by any cash collateral. Therefore, those
creditors need not be provided any adequate protection for use of
cash collateral under Section 363.
The Debtor shows that the aggregate indebtedness asserted by
Capital One is approximately $2.202 million. The Debtor maintains
that the value of the collateral allegedly securing the debt to
Capital One, including the real estate owned by the Debtor that is
valued at $1.4 million by the debtor, accounts receivable, cash and
inventory is $2.370 million. In addition, Capital One is further
protected by its mortgages on non-debtor real estate. Consequently,
no adequate protection is needed since Capital One maintains a
large equity cushion.
However, to the extent that the proceeds of all accounts receivable
and cash on hand and in bank accounts constitute cash collateral
and Capital One's lien thereon is not subject to avoidance or
subordination and adequate protection is determined to be required,
the Debtor proposes to grant Capital One a replacement lien on the
Debtor's post-petition accounts receivable and cash on hand,
retroactive to the Petition Date, as adequate protection for the
Debtor's use of the proceeds of all accounts receivable and the
cash on hand and in bank accounts to the extent that same
constitute cash collateral, and only to the extent of the actual
diminution of the value of Capital One's valid, enforceable
security interests in the Debtor's assets.
The Replacement Lien will be subject and subordinate to payment of
the following: (i) all fees required to be paid to the Clerk of the
Court and to the U.S. Trustee under 28 U.S.C section 1930(a) plus
interest pursuant to 31 U.S.C. section 3717; (ii) to the extent
allowed by the Bankruptcy Court at any time, and subject to the
Budget, all accrued and unpaid fees, disbursements, costs and
expenses of professionals or professional firms retained by the
Debtor or the Subchapter V Trustee appointed therein accrued or
incurred at any time before or on the date and time of the delivery
of a notice of default by Capital One, whether allowed by the Court
prior to or after delivery of such notice; plus fees, costs and
expenses incurred by the professionals after the date of the Notice
of Event of Default in an amount not to exceed $50,000 in the
aggregate.
A copy of the motion is available at https://bit.ly/3KmXUbu from
PacerMonitor.com.
About National Pharmacy Acquisition
National Pharmacy Acquisition owns and operates a pharmacy-based,
decentralized patient care organization that provides care to
patients with acute or chronic conditions generally pertaining to
parenteral administration of drugs, biologics and nutritional
formulae administered through catheters and/or needles in home and
alternate sites.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. La. Case No. 23-10102) on February 17,
2023. In the petition signed by Sharon LeBouef, manager, the Debtor
disclosed up to $10 million in both assets and liabilities.
Noel Steffes Melancon, Esq., at The Steffes Firm, LLC, represents
the Debtor as legal counsel.
NERVIVE INC: Taps Onyx Asset as Intellectual Property Broker
------------------------------------------------------------
Nervive, Inc. seeks approval from the U.S. Bankruptcy Court for the
District of Delaware to employ Onyx Asset Advisors, LLC as
intellectual property broker.
Onyx will render these services:
(a) work with the Debtor to create and implement a strategy
for the sale of the Property, including preparation of appropriate
and customary marketing materials;
(b) present all bona fide offers to Debtor and assist the
Debtor in developing and negotiating counteroffers until a sale
agreement is signed and all contingencies are satisfied or waived.
The firm will be paid as follows:
a. Seller shall pay Consultant an up-front fee, earned by
Consultant upon receipt, in the amount of $75,000 (the "Up-Front
Fee"), immediately upon Bankruptcy Court approval of this agreement
under section 328 of the Bankruptcy Code. This amount shall cover
Consultant’s reasonable out of pocket travel, marketing,
transportation and other related expenses in connection with the
Sale.
b. Consultant shall be paid from the Sale Escrow an additional
fee (a "Success Fee") upon the occurrence of the closing of a sale
of all or substantially all of the Assets at a price in excess of
$600,000 (a "Triggering Event").
As disclosed in the court filings, Onyx does not hold or represent
any interest adverse to the Debtor or the estate and is a
"disinterested person" as that term is defined under section
101(14) of the Bankruptcy Code.
The firm can be reached through:
K. Kevin Otus
Onyx Asset Advisors, LLC
50 California Street, Suite 1500
San Francisco, CA 94111
Phone: +1 800-496-8350
Email: kotus@thinkonyx.com
About Nervive Inc.
Nervive Inc. -- https://nervive.com/ -- is a medical clinic that
offers emergency treatment for strokes. Nervive is a for-profit
C-Corp incorporated in Delaware in December 2013, with headquarters
in North East Ohio. It has invested over $10 million in research
and development to date, mostly in the form of non-dilutive
research grants.
Nervive's Vitalflow(TM) is a novel platform technology that
stimulates the facial nerve using non-invasive pulsed magnetic
energy, resulting in increased blood flow to the brain. The
VitalFlow is expected to improve the effectiveness of existing
emergency stroke treatments, increasing the delivery of tPA and
other clot-busting drugs to the site of arterial obstruction and
facilitating the navigation of clot-retrieval catheters through the
dilated arteries of the brain.
The Debtor filed a petition for relief under Subchapter V of
Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Case No.
23-10009) on Jan. 8, 2023. In the petition filed by Emilio
Sacristan, chief executive officer, the Debtor reported between $1
million and $10 million in both assets and liabilities. Jami B.
Nimeroff has been appointed as Subchapter V trustee.
Michael Busenkell, Esq., at Gellert Scali Busenkell & Brown, LLC
serves as the Debtor's counsel.
NEUROEM THERAPEUTICS: Seeks to Hire Buddy D. Ford as Legal Counsel
------------------------------------------------------------------
NeuroEM Therapeutics, Inc. seeks approval from the U.S. Bankruptcy
Court for the Middle District of Florida to employ Buddy D. Ford,
P.A. as its legal counsel.
The firm's services include:
a. analyzing the financial situation of the Debtor;
b. advising the Debtor with regard to its powers and duties in
the continued operation of the business and management of the
property of the estate;
c. preparing and filing schedules of assets and liabilities,
statement of affairs, and other documents required by the court;
d. representing the Debtor at the Section 341 creditors'
meeting;
e. advising the Debtor with respect to its responsibilities in
complying with the United States Trustee's Operating Guidelines and
Reporting Requirements and with the rules of the court;
f. preparing legal papers and appearing at court hearings;
g. protecting the interest of the Debtor in all matters
pending before the court;
h. representing the Debtor in negotiation with its creditors
in the preparation of a Chapter 11 plan; and
i. other necessary legal services.
The firm will be paid at these rates:
Attorneys $450 per hour
Senior Associate Attorneys $400 per hour
Junior Associate Attorneys $350 per hour
Senior paralegal $150 per hour
Junior paralegal $100 per hour
In addition, the firm will receive reimbursement for out-of-pocket
expenses incurred.
The Debtor paid the firm a retainer of $25,000.
As disclosed in court filings, Buddy D. Ford is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Buddy D. Ford, Esq.
Jonathan A. Semach, Esq.
Heather M. Reel, Esq.
Buddy D. Ford, P.A.
9301 West Hillsborough Avenue
Tampa, FL 33615-3008
Tel: (813) 877-4669
Email: Buddy@tampaesq.com
Jonathan@tampaesq.com
Heather@tampaesq.com
About NeuroEM Therapeutics
NeuroEM Therapeutics, Inc. is a Phoenix-based medical device
company committed to developing, clinically testing, and marketing
Transcranial Electromagnetic Treatment (TEMT) as treatment for
Alzheimer's disease and other neurodegenerative diseases.
NeuroEM Therapeutics filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla. Case No.
23-00425) on Feb. 3, 2023, with $100,000 to $500,000 in assets and
$1 million to $10 million in liabilities.
Judge Catherine Peek McEwen oversees the case.
Buddy D. Ford, Esq., at Buddy D. Ford, P.A. represents the Debtor
as counsel.
NEWELL BRANDS: Fitch Lowers LongTerm IDR to 'BB', Outlook Negative
------------------------------------------------------------------
Fitch Ratings has downgraded Newell Brands Inc.'s Long-Term Issuer
Default Rating (IDR) to 'BB' from 'BB+'. The Rating Outlook is
Negative. The downgrade reflects the material pressure on top line
and EBITDA beginning in the second half of 2022 (2H22) that is
likely to remain through 2023, given a significant pullback in
retail orders and an overall slowdown in discretionary consumer
spending. Beyond a weakening macro environment, execution risk is
a concern as Newell continues to realign and restructure its
business segments and supply chain network which could further
disrupt operations.
Fitch expects gross debt/EBITDA could hit 6x in 2023 from an
elevated 4.6x in 2022 before declining to the low 4x in 2024 on
projected top line and EBITDA recovery. Newell's Outlook could be
stabilized on increased visibility around management's ability to
execute on its turnaround strategy, and drive top line and EBITDA
recovery in 2024, which along with debt reduction would bring gross
debt/EBITDA to under 4.5x.
KEY RATING DRIVERS
Near Term Challenges: Newell's operations beginning 2H22 are
challenged by changing consumer behavior with a shift towards
services after strong pandemic-induced demand, a slowdown in
consumer spending given moderating consumer fundamentals, and
declining customer orders as retailers reduce inventory levels
across general merchandise categories.
Newell saw a material decline in revenue (down 19%) and EBITDA
(decline of 40%) in 2H22, given a higher than expected pullback in
customer orders for food, home appliance and fragrance
(collectively 37% of 2022 revenue) and outdoor and recreation (14%
of revenue). The company has also seen significant margin headwinds
from cost inflation, an increase in advertising and promotion
expense as a percentage of sales and an unfavorable impact from
foreign exchange, partially offset by pricing, productivity savings
and lower overhead costs.
EBITDA Volatility Continues: Core sales declines have accelerated
into 2023 with Newell projecting 1Q21 core sales decline of 16%-18%
with operating margin at 3% to 3.5%, and full year core sales
decline of 6% to 8% and operating margin of 9.6% to 10.1%. Fitch
projects EBIT margin of 8% on core sales declines of 9% with EBITDA
trending towards $900 million from about $1.2 billion in 2022 and
$1.45 billion in 2021 before recovering towards $1.2 billion in
2024/2025. EBITDA margins are expected to decline to approximately
11% compared with 2022 at 12.6% before recovering to 14% in 2024
with the easing of inflationary pressures and a modest recovery in
consumer spending in some of Newell's core categories.
Elevated Leverage: Gross debt/EBITDA increased to 4.6x in 2022
versus 3.4x in 2021 given the material weakness in top line and
EBITDA in 2H22. Disappointing top line and associated inventory
build has also pressured FCF, causing Newell to add approximately
$600 million in short-term debt in 2022. Fitch expects gross
leverage to increase to 6x in 2023 before trending to the low 4x in
2024, assuming some top line recovery and EBITDA and paydown of
about $300 million in short-term borrowings during 2023/2024.
Newell saw a significant FCF outflow of almost $1 billion in 2022,
versus FCF of almost $200 million in 2021, given a material
increase in working capital. FCF is expected to break even in 2023
and return to positive $200 million in 2024 on a combination of
working capital improvement and EBITDA growth in 2024. Fitch
expects Newell to use cash on hand and FCF to reduce CP and
revolver borrowings over 2023 and 2024.
Medium Term Low-Single Digit Topline Growth Target: Newell expects
to sustain low single digit organic sales growth over the medium
term by strengthening brands through increased innovation, focusing
on omnichannel initiatives (with ecommerce at 22% of sales), and
accelerating international growth (one-third of sales). In 2021,
the company realigned its eight business units into three
categories to direct investments and business focus and maximize
portfolio value. Post a projected recovery in 2024 in the
mid-single digits, Fitch expects Newell's top line to be flat to
modestly positive over the medium term given difficulty in driving
market share in areas such as food, home fragrance, and home
appliances.
Medium Term Margins: Newell has a long-term target of driving
operating margin improvement of 50bp annually. Actions include
reduction in overhead costs and working capital management. In
September 2021, Newell discussed a new multi-year supply chain
initiative (Project OVID) to transform its go-to market strategy,
particularly in the U.S., moving from 23 business specific supply
chains to a single integrated supply chain. In January 2023, Newell
further announced a restructuring and savings initiative, Project
Phoenix, that aims to strengthen the company and further reduce
complexity, streamline its operating model and drive operational
efficiencies, with annualized pre-tax savings in the range of $220
million to $250 million beginning 2024.
Newell has also realigned its business segments several times over
the last few years in an effort to drive growth and improve
profitability. This combined with material shifts in consumer
spending patterns during and post the pandemic make it challenging
to assess underlying business trends. Given Newell's ongoing gross
margin challenges in a number of categories, investments required
to support its brands and potential execution risk, disruption and
costs related to its supply chain initiatives, Fitch expects little
upside to the 14% EBITDA range seen in 2019-2021. Fitch expects
Newell's EBITDA margin to trend towards 14% in 2024/2025 from a
projected 11% in 2023 given a combination of easing inflationary
pressures, improving topline and some benefit from cost reduction
actions.
DERIVATION SUMMARY
Newell's 'BB'/Outlook Negative rating reflects the material
pressure on top line and EBITDA beginning in 2H22 that is likely to
remain through 2023, given a significant pullback in retail orders
and an overall slowdown in discretionary consumer spending. Beyond
a weakening macro environment, execution risk is a concern as
Newell continues to realign and restructure its business segments
and realign its supply chain which could further disrupt
operations. Newell's Outlook could be stabilized on increased
visibility around management's ability to execute on its turnaround
strategy, and drive top line and EBITDA recovery in 2024, which
along with debt reduction would bring gross debt/EBITDA to under
4.5x.
ACCO's 'BB'/Outlook Stable rating reflects the company's
historically consistent FCF and reasonable gross leverage, which
trended around 3x prior to operating challenges in 2020 related to
the coronavirus pandemic. The rating and Outlook are constrained by
secular challenges in the office products industry and channel
shifts within the company's customer mix. ACCO's earnings have been
pressured by supply chain challenges, inflation and a stronger
dollar which could lift leverage into the low 4x range in 2022,
above Fitch's negative sensitivity. While Fitch expects margin
recovery combined with debt paydown to drive leverage back below 4x
in 2023, a prolonged downturn could be a rating concern.
Tempur Sealy International, Inc.'s (TPX) 'BB+'/Outlook Stable
rating reflects the scale of operations and strong global market
position with a portfolio of well-known, established brands with a
wide variety of price points, anchored by the Tempur-Pedic brand.
The recent acquisition of Dreams, a leading vertically integrated
specialty bed retailer in the UK, increased TPX's geographic
diversification by nearly doubling its international revenues with
sales in markets outside of North America to over $1 billion or
around 20% of total sales. While near-term pressures to operating
results are expected to persist into 2023 given ongoing shifts in
consumer behavior and global macroeconomic uncertainty, Fitch
believes TPX's strong competitive position, brand/product portfolio
and operational strategy with good FCF generation supports TPX's
ability to maintain EBITDA in the low $900 million range and
EBITDAR leverage in the mid-3x over the medium term.
Mattel, Inc. 'BB+'/Outlook Positive rating reflects Mattel's
meaningfully improved credit metrics achieved through better than
expected execution on both the top and bottom line as well as
discretionary debt paydown. While Fitch expects the company to
surrender some of the revenue and margin gains achieved in 2021 as
the tailwinds from the pandemic dissipate, the Positive Outlook
reflects Fitch's view that improved competitive positioning, cost
cuts and debt reduction could result in post-pandemic credit
metrics and an operational profile supportive of an investment
grade rating over time.
Hasbro, Inc's. 'BBB-'/Outlook Stable rating reflects its position
as one of the world's largest toy companies, its good liquidity and
cash flow profile, and expectations of leverage (gross debt to
EBITDA) maintaining below 3.5x over time.
KEY ASSUMPTIONS
- Revenue declines of around 14% to $8.2 billion in 2023 from $9.5
billion in 2022, reflecting core sales declines of 9% driven by a
significant pullback in retail orders and an overall slowdown in
discretionary consumer spending. Top line is also expected to be
impacted from a combination of currency headwinds and divested
businesses (the company divested its Connected Home & Security on
April 1, 2022, which had net sales of $395 million in 2021).
Revenue is expected to grow mid-single digits in 2024.;
- Operating EBITDA is expected to be approximately $900 million in
2023, versus $1.2 billion in 2022, before recovering towards the
$1.2 billion range over 2024/2025. EBITDA margin is expected to be
approximately 11% % in 2023 (versus 12.6% in 2022) before
recovering to 14% (in line with 2018/2019 margin) beginning 2024;
- Capex around $275 million and dividends at around $400 million
annually;
- FCF (after dividends) is expected to be breakeven in 2023 and
approximately $200 million in 2024 on a combination of working
capital improvement and EBITDA growth in 2024;
- Gross debt/EBITDA as of 2022 was at 4.6x compared to 3.4x in 2021
given material weakness in top line and EBITDA and some issuance of
short-term debt. Fitch expects gross leverage to increase to 6x in
2023 before trending to the low 4x in 2024, assuming some top line
recovery and EBITDA and paydown of about $300 million in short-term
borrowings during 2023/2024. The projected net leverage of 5.8x in
2023 and 4.1x in 2024 is significantly higher than Newell's
long-term net leverage (net debt/EBITDA) target of 2.5x.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- A positive rating action could result from increased confidence
in the company's ability to grow core sales in the low single
digits, improve EBITDA to over $1.2 billion and deploy FCF towards
debt reduction, such gross debt/EBITDA is sustained under 4x.
- The Outlook could be stabilized on increased visibility around
management's ability to execute on its turnaround strategy, and
drive top line and EBITDA recovery in 2024, which along with debt
reduction would bring gross debt/EBITDA to under 4.5x.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- A negative rating action could result from worse than expected
operating performance leading to reduced confidence in Newell's
ability to stabilize its business and/or lower than expected debt
reduction such that gross debt/EBITDA is sustained above 4.5x.
LIQUIDITY AND DEBT STRUCTURE
Adequate Liquidity: As of Dec. 31, 2022, Newell maintained $287
million cash on hand and approximately $900 million availability
under its $1.5 billion unsecured revolving credit facility due to
mature in August 2027, after netting out approximately $600 million
in short-term borrowings. In addition, Newell has a $375 million
accounts receivable securitization facility that matures in October
2023; as of Dec. 31, 2022 under which there were minimal
borrowings.
Newell's total outstanding debt was approximately $5.4 billion at
the end of 2022, versus $4.9 billion at the end of 2021, reflecting
an increase in short-term borrowings. Fitch expects Newell to
deploy its FCF toward paydown of a portion of CP and revolver
borrowings in 2023 and 2024. The next debt maturity is $200 million
of debt due in April 2024, which the company could choose to
refinance or pay down with cash on hand or revolver borrowings.
RECOVERY CONSIDERATIONS
Fitch does not employ a waterfall recovery analysis for issuers
assigned ratings in the 'BB' category. The further up the
speculative grade continuum a rating moves, the more compressed the
notching between the specific classes of issuances becomes.
Newell's capital structure is unsecured, including its revolver and
notes. Fitch has downgraded its unsecured ratings to 'BB'/'RR4'
from 'BB+'/'RR4', indicating average recovery prospects.
ISSUER PROFILE
Newell is a global marketer of consumer and commercial products,
marketed under Paper Mate, Sharpie, Dymo, EXPO, Parker, Elmer's,
Coleman, Marmot, Oster, Sunbeam, FoodSaver, Mr. Coffee, Rubbermaid
Commercial Products, Graco, Baby Jogger, NUK, Calphalon,
Rubbermaid, Contigo, First Alert, Mapa, Spontex, Quickie and Yankee
Candle.
SUMMARY OF FINANCIAL ADJUSTMENTS
- Historical EBITDA has been adjusted for stock-based compensation,
restructuring and restructuring related costs, acquisition
amortization & impairment, transaction and related costs, other
items.
ESG CONSIDERATIONS
Newell has an Environmental, Social and Governance (ESG) Relevance
Score of '4' for Financial Transparency. This reflects material
weaknesses in internal control over financial reporting related to
the company's tax accounting in 2019 and 2020, an SEC subpoena in
January 2020 related to the impairment of goodwill and other
intangibles in 2018, and a subpoena in June 2021 related to
disclosures of the potential impact of revised U.S. Treasury
regulations.
Operating comparability over the last few years has also been
challenging given a number of reclassifications of continuing
versus discontinued operations as well as business segments over
2018-2022. This has a negative impact on the credit profile and is
relevant to the ratings in conjunction with the other factors.
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Newell Brands Inc. LT IDR BB Downgrade BB+
senior unsecured LT BB Downgrade RR4 BB+
NORTH BROOKLYN: Seeks to Hire David J. Doyaga as Bankruptcy Counsel
-------------------------------------------------------------------
North Brooklyn Real Estate Initiative Corp. seeks approval from the
U.S. Bankruptcy Court for the Eastern District of New York to
employ David J. Doyaga, Attorneys At Law as counsel.
The firm's services include:
a. advising the Debtor with respect to its powers and duties;
b. negotiating with creditors in formulating and confirming a
plan of reorganization;
c. preparing legal documents; and
d. other necessary legal services.
The hourly rates charged by the firm's attorneys and paralegals are
as follows:
Attorneys $650 per hour
Associate attorneys $475 per hour
Paralegals $295 per hour
In addition, the firm will seek reimbursement for out-of-pocket
expenses incurred.
The retainer fee is $10,000.
As disclosed in court filings, David J. Doyaga, Attorneys At Law is
a "disinterested person" within the meaning of Section 101(14) of
the Bankruptcy Code.
The firm can be reached at:
David J. Doyaga, Esq.
David J. Doyaga, Attorneys At Law
26 Court Street, Suite 1601
Brooklyn, NY 11242
Tel: (718) 488-7500
Fax: (718) 488-7505
Email: david.doyaga.sr@gmail.com
About North Brooklyn Real Estate Initiative
North Brooklyn Real Estate Initiative Corp. is a single asset real
estate (as defined in 11 U.S.C. Sec. 101(51B)). The company is
based in Brooklyn, N.Y.
North Brooklyn Real Estate Initiative sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No.
22-41926) on Aug. 10, 2022, with $1 million to $10 million in
assets and $500,000 to $1 million in liabilities. Federico Frazer,
president of North Brooklyn Real Estate Initiative, signed the
petition.
Judge Elizabeth S. Stong oversees the case.
David J. Doyaga, Attorney at Law is the Debtor's counsel.
O'CONNOR CONSTRUCTION: Taps Rochelle Mccullough as Legal Counsel
----------------------------------------------------------------
O'Connor Construction Group, LLC seeks approval from the U.S.
Bankruptcy Court for the Northern District of Texas to employ
Rochelle McCullough, LLP as its legal counsel.
The firm's services include:
a. advising the Debtor with respect to its rights, powers and
duties in the continued operation and management of its business;
b. advising the Debtor concerning, and assisting in the
negotiation and documentation of, agreements, debt restructuring,
and related transactions;
c. monitoring transactions proposed by parties in interest and
advising the Debtor regarding the same;
d. reviewing the nature and validity of liens asserted against
the Debtor's property and advising the Debtor concerning the
enforceability of such liens;
e. advising the Debtor concerning actions that might be taken to
collect and recover property for the benefit of its estate;
f. reviewing and monitoring the Debtor's ongoing business;
g. preparing legal documents and reviewing all financial reports
to be filed in the Debtor's Chapter 11 case;
h. advising the Debtor concerning, and preparing responses to,
legal papers that may be filed and served in its case;
i. advising the Debtor in connection with any suggested or
proposed plan of reorganization;
j. counseling the Debtor in connection with the formulation,
negotiation and promulgation of a plan of reorganization; and
k. other legal services.
Rochelle McCullough will be paid at these rates:
Partners $475 per hour
Associates $350 to $400 per hour
Paraprofessionals $225 per hour
In addition, the firm will receive reimbursement for out-of-pocket
expenses incurred.
The firm received from the Debtor a retainer fee of $50,000.
Joseph Postnikoff, Esq., a partner at Rochelle Mccullough,
disclosed in a court filing that his firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Joseph F. Postnikoff, Esq.
Rochelle McCullough, LLP
300 Throckmorton Street, Suite 520
Fort Worth, TX 76102
Tel: (817)291-9822
Email: jpostnkoff@romclaw.com
About O'Connor Construction Group
Based in Poolville, Texas, O'Connor Construction Group, LLC has
over 30 years of experience as a commercial and industrial
contractor specializing in food storage and processing facilities
and provides turnkey design, construction and construction
management services for projects nationwide, but focusing primarily
in the South/Southwest.
O'Connor sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. N.D. Texas Case No. 22-40187-11) on Jan. 28, 2022,
with up to $10 million in assets and up to $50 million in
liabilities. Paul O'Connor, member and manager, signed the
petition.
Judge Edward L. Morris oversees the case.
Joseph F. Postnikoff, Esq., at Rochelle McCullough, LLP is the
Debtor's legal counsel.
Union Funding Source, Inc., as secured creditor, is represented by
Shanna M. Kaminski, Esq. at Kaminski Law, PLLC.
OAKWOOD DREAMS: Case Summary & Nine Unsecured Creditors
-------------------------------------------------------
Debtor: Oakwood Dreams LLC
21 E. Oakwood Hills Dr.
Chandler, AZ 85248
Business Description: The Debtor owns a single family home located
at 21 E. Oakwood Hills Drive, Chandler, AZ
valued at $3.41 million based on estimate
provided by Zillow.
Chapter 11 Petition Date: February 20, 2023
Court: United States Bankruptcy Court
District of Arizona
Case No.: 23-01008
Debtor's Counsel: Chris D. Barski, Esq.
BARSKI LAW PLC
9375 E. Shea Blvd., Ste. 100
Scottsdale, AZ 85260
Tel: (602) 441-4700
Fax: (602) 680-4305
Email: cbarski@barskilaw.com
Total Assets: $3,914,700
Total Liabilities: $2,493,877
The petition was signed by Dallas Baldry, Trustee of Bella Vita
Ventures Trust.
A full-text copy of the petition containing, among other items, a
list of the Debtor's nine unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/BIPVPYY/OAKWOOD_DREAMS_LLC__azbke-23-01008__0001.0.pdf?mcid=tGE4TAMA
OBSTETRIC AND GYNECOLOGIC: Taps VRS Restructuring to Provide CRO
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Obstetric and Gynecologic Associates of Iowa City and Coralville,
P.C. seeks approval from the U.S. Bankruptcy Court for the Southern
District of Iowa to hire VRS Restructuring Services, LLC to provide
additional support personnel and designate Jeffrey T. Varsalone, as
its chief restructuring officer.
The firm's services include:
a. preparing a 13-week cash flow forecast, assisting the
Debtor with debtor-in-possession financing negotiations and
assisting the Debtor with related lender reporting requirements;
b. assisting the Debtor with the preparation of data in order
to prepare pleadings and fiduciary filings in the Case;
c. providing testimony in the Case on such matters that are
within VRS's expertise;
d. executing restructuring initiatives, including negotiations
with creditors and key stakeholders, structuring plans of
reorganization, selling all or parts of the company, including any
marketing thereof;
e. assisting the Debtor and its counsel in negotiations with
various parties-in-interest;
f. assisting the Debtor and its counsel in adversary
proceedings or contested matters in the Case; and
g. supporting the Debtor in such matters as the board of
directors of the Debtor shall request or require from time to
time.
The Debtor has agreed to compensate VRS at a blended hourly rate of
$500.
The firm's hourly rates are:
Managing Director $725
Director $625
Vice President $525
Senior Associate $425
Associate/Analyst $325
Mr. Varsalone, managing director of VRS, assured the court that VRS
is a "disinterested person" as that term is defined in Sec. 101(14)
of the Bankruptcy Code.
The firm can be reached through:
Jeffrey T. Varsalone
VRS Restructuring Services, LLC
20 Tumble Rd
Bedford, NH, 03110
Phone: 516-410-6215
Email: jvarsalone@hotmail.com
About Obstetric and Gynecologic Associates
Obstetric and Gynecologic Associates of Iowa City and Coralville,
P.C. -- https://www.obgyniowacity.com/ -- provides obstetric and
gynecologic care services of women through Mercy Hospital in
Coralville, Iowa.
Obstetric and Gynecologic Associates sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Iowa Case No.
22-01174) on Oct. 31, 2022. In the petition filed by Jill C.
Goodman, as authorized officer, the Debtor listed assets between
$500,000 and $1 million and liabilities between $50 million and
$100 million.
Judge Anita L. Shodeen oversees the case.
The Debtor tapped Levenfeld Pearlstein, LLC and Nyemaster Goode, PC
as legal counsels; and G2 Capital Advisors, LLC as restructuring
advisor. Jeffrey T. Varsalone, managing director at G2 Capital,
serves as the Debtor's chief restructuring officer. Stretto, Inc.
is the claims, noticing and solicitation agent.
OLYMPIA SPORTS: Seeks to Hire Richardson Kontogouris as Accountant
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Olympia Sports Acquisitions, LLC and its affiliates seek approval
from the U.S. Bankruptcy Court for the District of Delaware to
employ Richardson Kontogouris Emerson LLP as its accountants.
Richardson will be preparing the Debtors' income tax returns,
sales and use tax returns, providing tax consulting services, and
assisting the Debtors in connection with the plan
process/consolidation issues and ultimate winddown of the Debtors.
The firm will render these services:
a. prepare the Debtors' tax returns;
b. provide routine tax consulting services as may be requested
from time to time by the Debtors, including tax research, analysis,
consultations, assistance with tax examinations, and other routine
tax consulting services, including consulting on tax matters
related to the Chapter 11 Cases;
c. assist the Debtors in connection with the plan
process/consolidation issues and ultimate winddown of the Debtors;
and
d. perform such other services as the Debtors may request from
time to time related to accounting and tax issues.
The firm will be paid at these rates:
Partner $615 per hour
Manager $380 per hour
Associate $280 per hour
As disclosed in the court filings, Richardson Kontogouris Emerson
is a "disinterested person" under section 101(14) of the Bankruptcy
Code, and does not hold or represent an interest adverse to the
Debtors' estate.
The firm can be reached through:
Tricia Chow, CPA
Richardson Kontogouris Emerson LLP
2942 Columbia St
Torrance, CA 90503
Phone: +1 310-527-4550
Email: tricia.chow@rkellp.com
About Olympia Sports Acquisitions
Olympia Sports Acquisitions, LLC, is a sporting goods retail
company that maintains brick and mortar locations across the East
Coast, including Maine, New Hampshire, Vermont, New York,
Massachusetts, Rhode Island, and New Jersey.
On Sept. 11, 2022, Olympia Sports and several affiliates,
including, RSG Acquisitions, LLC, Project Running Specialties,
Inc., and The Running Specialty Group, LLC, sought Chapter 11
bankruptcy protection (Bankr. D. Del. Lead Case No. 22-10853).
Olympia Sports estimated assets of $1 million to $10 million and
liabilities of $10 million to $50 million as of the bankruptcy
filing.
The Debtors tapped Shulman Bastian Friedman & Bui LLP as general
bankruptcy counsel; Morris James LLP as local counsel; and Force 10
Partners as financial advisor. BMC Group is the claims agent.
The U.S. Trustee for Regions 3 and 9 appointed an official
committee to represent unsecured creditors in Debtors' cases on
Sept. 23, 2022. Kelley Drye & Warren, LLP, Emerald Capital
Advisors, and Potter Anderson & Corroon, LLP as lead bankruptcy
counsel, financial advisor and Delaware counsel, respectively.
OPULENT AMERICAS: Gets OK to Hire Great Neck Realty as Broker
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Opulent Americas, Inc. received approval from the U.S. Bankruptcy
Court for the Eastern District of North Carolina to employ Great
Neck Realty Company of North Carolina, LLC.
The Debtor requires the services of a broker in connection with a
potential sale of its ownership interests in New Energy, LLC
pursuant to a Chapter 11 plan of reorganization.
The Debtor expects the court to approve its proposed bidding
procedures that will allow it to solicit bids, conduct an auction
and seek approval of the winning and back-up bids at a court
hearing on March 6.
The broker will be paid as follows:
a. Whether or not any transaction is consummated, the Debtor
will pay up to $5,000 of the broker's out-of-pocket expenses.
b. Whether or not any transaction is consummated, the Debtor
will pay a nonrefundable cash fee of $15,000.
c. In addition to the expense advances and the fixed fee, the
Debtor will pay the broker a fee upon approval and closing of any
transaction equal to 10 percent of the amount by which the
prevailing bid exceeds the initial stalking horse bid.
Robert Tramantano, a broker at Great Neck Realty, disclosed in a
court filing that his firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Robert Tramantano
Great Neck Realty of North Carolina, LLC
1011 S. Hamilton Road
Chapel Hill, NC 27561
Telephone: (984) 528-3619
Email: rtramantano@greatneckrealtyco.com
About Opulent Americas
Opulent Americas, Inc. develops products for the LED lighting,
automation, and IoT industries. The company is based in Raleigh,
N.C.
Opulent Americas filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.C. Case No.
22-02997) on Sept. 29, 2022, with $583,105 in assets and $3,450,384
in liabilities. Russell Shaver, president of Opulent Americas,
signed the petition.
Judge David M. Warren presides over the case.
John A. Northen, Esq., at Northen Blue, LLP represents the Debtor
as counsel.
PANTHER GUARANTOR II: Fitch Alters Outlook on 'B+' IDR to Positive
------------------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Issuer Default Ratings
(IDRs) for Panther Guarantor II, L.P., Panther Purchaser L.P., and
Panther Commercial Holdings, L.P. (collectively d.b.a. Forcepoint)
at 'B+'. The Rating Outlook has been revised to Positive from
Stable. Fitch has also affirmed Forcepoint's $75 million secured
revolving credit facility (RCF) and $680 million first-lien secured
term loan at 'BB+'/'RR1'. Panther Purchaser L.P. and Panther
Commercial Holdings, L.P. are co-issuers of the RCF and term loan.
Forcepoint's ratings are supported by its well-established market
position within the growing government and commercial cybersecurity
industry. The Positive Outlook reflects the strengthening
operating and financial profiles as the company's EBITDA margins
continue to expand and approach normalized levels. The company
successfully optimized operations after its separation from
Raytheon Technologies in January 2021, eliminating risks associated
with the separation.
As a private equity-owned entity, some level of financial leverage
is likely to be maintained as shareholders prioritize ROE
maximization and limit debt reduction to mandatory amortization.
KEY RATING DRIVERS
Cybersecurity Industry Leader: Forcepoint is an industry leader
across niche areas including Data Loss Prevention (DLP), Secure Web
Gateway (SWG) and Next Gen Firewall (NGFW) technologies in the
commercial segment, and Cross Domain Solutions (CDS) and User
Activity Monitoring (UAM) products in the government segment.
Through recent acquisitions, Forcepoint expanded its capabilities
in threat removal, remote browser isolation, and cloud access
security broker (CASB).
While the number of competitors within cybersecurity is expansive,
they typically compete in select subsegments. Fitch believes
Forcepoint's leadership position in these markets would enable the
company to capitalize on the secular industry growth.
Secular Tailwinds Support Growth: Forcepoint is exposed to the
growing cybersecurity industry, which Fitch forecasts will have a
CAGR in the high-single digits in a normal economic environment.
The importance of cybersecurity has been elevated in recent years
with increasing complexity of IT networks and continuing
digitalization of information. High profile cybersecurity breaches
have also heightened awareness for more comprehensive cybersecurity
solutions. Fitch believes these factors will benefit subsegment
leaders such as Forcepoint as part of the overall solution.
High Recurring Revenue and Retention: Over 70% of Forcepoint's
revenue is recurring with an over 90% gross retention rate. The
strong revenue retention implies sticky products with high
switching costs and demonstrates the mission criticality of its
products. The high revenue retention and recurring revenue enhances
the predictability of Forcepoint's financial performance and
increases the lifetime value of customers.
Diversified Customer Base: In the commercial segment, Forcepoint
serves approximately 13,000 customers across diverse industry
verticals including financial services, healthcare, consulting,
telecom and energy. The broad exposure effectively reduces
Forcepoint's customer concentration risks and reduces revenue
volatility through economic cycles. Fitch views such
characteristics favorably as it reduces industry-specific risks.
Product Expansion Through Acquisitions: Forcepoint acquired
Cyberinc Corp., Deep Secure Ltd., and Bitglass, Inc. during 2021 to
expand its cybersecurity technology portfolio. Fitch expects
Forcepoint to continue making acquisitions as a strategy to acquire
necessary technologies in the rapidly evolving cybersecurity
industry in order to address market needs for hybrid cloud IT
infrastructure.
Strengthening FCF: Since the separation from Raytheon Technologies
in January 2021, Forcepoint has executed on operational
improvements that has reversed the historically negative FCF to
positive FCF excluding transaction and restructuring charges in
2022. Fitch expects pre-dividend FCF margins to be in the
high-single-digits in the near-term and expanding to low-teens in
the medium-term, consistent with industry peers.
Elevated Leverage with Deleveraging Capacity: Fitch estimates
Forcepoint's gross leverage will be below 4x in 2023, down from
approximately 5x in 2022 driven by EBITDA growth. Despite the
further deleveraging capacity projected supported by the company's
FCF generation, Fitch expects limited debt prepayment as
Forcepoint's private equity ownership would likely maintain some
level of debt to optimize capital structure and ROE.
DERIVATION SUMMARY
Forcepoint operates in a sub-segment of the fragmented
cybersecurity industry. The broader enterprise security market has
been growing supported by greater awareness around security
breaches and the increasing complexity of IT networks and
applications.
While the company operated under the larger Raytheon Technologies
umbrella prior to 2021, Forcepoint has been established as a
segment leader with a resilient customer base and modest revenue
growth. Its profitability as measured by EBITDA and FCF margins
have been below those of industry peers. As part of the plan to be
acquired by Francisco Partners, the company executed on operational
efficiency improvements to close the profitability gap with
industry peers.
Within the broader enterprise security market, peers include
Magenta Buyer (B/Stable, dba Trellix) and Gen Digital Inc.
(BB+/Negative). Forcepoint has a smaller revenue scale and lower
EBITDA margins than peers.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within the Agency's Rating Case for the
Issuer
- Annual organic revenue growth in the low- to mid-single-digits
through Fitch's forecast period;
- EBITDA margins in the mid- to high-20's;
- Debt repayment limited to mandatory amortization;
- Aggregate acquisitions of $100 million through 2026;
- Fitch assumes capital allocation in 2024 and beyond that
could include debt-funded dividends and M&As.
KEY RECOVERY RATING ASSUMPTIONS
- The recovery analysis assumes that Forcepoint would be
reorganized as a going-concern in bankruptcy rather
than liquidated.
- Fitch has assumed a 10% administrative claim.
Going-Concern (GC) Approach
- A possible bankruptcy scenario could be unsustainable capital
structure driven by aggressive capital allocation or failure
to capitalize on a series of debt-financed acquisitions.
- In the event of a bankruptcy reorganization, Fitch expects
Forcepoint would suffer customer churn pressuring the revenue
and compressed EBITDA on lower revenue scale. This could
result
in portions of the cost reduction efforts being reversed to
stabilize operational weaknesses. This would result in going
concern EBITDA (GC EBITDA) of $150 million, approximately 31%
below the projected level for 2023.
- The GC EBITDA estimate reflects Fitch's view of a sustainable,
post-reorganization EBITDA level that should be approaching
industry norm while incorporating the risks associated with
necessary operational improvements, upon which Fitch bases the
enterprise valuation.
- Upon full completion of operational restructuring and
operations
reaches steady state, EBITDA could be structurally higher than
historical levels. The could result in upward revisions of
GC EBITDA in future reviews.
- An EV multiple of 7x EBITDA is applied to the GC EBITDA to
calculate a post-reorganization enterprise value. The choice
of this multiple considered the following factors:
- The historical bankruptcy case study exit multiples for
technology peer companies ranged from 2.6x-10.8x;
- Of these companies, only three were in the software sector:
Allen Systems Group, Inc; Avaya, Inc.; and Aspect Software
Parent, Inc., which received recovery multiples of 8.4x,
8.1x, and 5.5x, respectively;
- The highly recurring nature of Forcepoint's revenue and
mission critical nature of the product support the high-end
of the range.
- Fitch arrived at an EV of $1.05 billion. After applying the
10% administrative claim, adjusted EV of $943.7 million is
available for claims by creditors.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- Fitch's expectation of EBITDA leverage remaining below 4.0x;
- (CFO-Capex)/Debt above 10%;
- Revenue growth consistent with industry trends demonstrating
stable market position and ability to increase product
bundling.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- Fitch's expectation of EBITDA leverage remaining above 5.5x;
- (CFO-Capex)/Debt below 7%;
- Revenue growth below industry trends implying weakening market
position.
LIQUIDITY AND DEBT STRUCTURE
Adequate Liquidity: Forcepoint's liquidity is adequate and
supported by its $13 million cash on balance sheet as of 3Q 2022,
$75 million undrawn RCF, and projected FCF generation in 2023. With
the successful execution of its operational improvements, Fitch
expects Forcepoint to sustain FCF in the high-single-digits to
low-teens, consistent with its privately owned software peers.
Debt Structure: Forcepoint has $680 million of secured first-lien
debt due 2028. Fitch expects the company to generate sufficient FCF
over the rating horizon to make its required debt payments.
ISSUER PROFILE
Forcepoint is a leading provider of cybersecurity solution, serving
commercial enterprises, SMBs and governments worldwide.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Panther Guarantor
II, L.P. LT IDR B+ Affirmed B+
Panther Commercial
Holdings, L.P. LT IDR B+ Affirmed B+
senior secured LT BB+ Affirmed RR1 BB+
Panther Purchaser, L.P.
LT IDR B+ Affirmed B+
senior secured LT BB+ Affirmed RR1 BB+
PARAMOUNT AIR: Gets OK to Tap Dodson Shelton & Nelson as Accountant
-------------------------------------------------------------------
Paramount Air Solutions, LLC received approval from the U.S.
Bankruptcy Court for the Middle District of North Carolina to
employ Dodson Shelton & Nelson, P.A. as its accountant.
The Debtor requires an accountant to prepare its 2021 and 2022 tax
returns and review the 2019 and 2020 tax returns to determine if
amendments thereto are necessary. In addition, the Debtor may need
assistance to remediate its financial books, QuickBooks, for 2021.
The firm will charge $100 per hour for the preparation of any
necessary amended tax returns; $100 per hour for the preparation of
tax returns for 2021 and 2022; $100 per hour for the remediation of
financial books for 2021; $225 per hour for the internal review of
returns prepared and those previously filed to determine if an
amendment is necessary.
Bradley Whitley, a partner at Dodson Shelton & Nelson, disclosed in
a court filing that his firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Bradley W. Whitley, CPA
Dodson Shelton & Nelson, P.A.
603 Dolley Madison Road, Suite 104
Greensboro, NC 274410
Tel: (336) 299-6061
Email: bwhitley619@gmail.com
About Paramount Air Solutions
Paramount Air Solutions, LLC offers residential and light
commercial HVAC maintenance, emergency service, repairs and system
change outs. It currently has 215 service plan customers who hold
maintenance agreements with the company, with Paramount performing
routine HVAC maintenance biannually. The company services customers
from South Charlotte, Gastonia, Waxhaw, the Lake Norman area and
the Piedmont Triad.
Paramount sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. M.D.N.C. Case No. 22-10635) on Dec. 16, 2022. In the
petition signed by its member-manager, Jeramy Lee Goodman, the
Debtor disclosed up to $500,000 in assets and up to $10 million in
liabilities.
Judge Lena M. James oversees the case.
The Debtor tapped Samantha K. Brumbaugh, Esq., at Ivey, McClellan,
Siegmund, Brumbaugh & McDonough, LLP as legal counsel, and Dodson
Shelton & Nelson, P.A. as accountant.
PARTY CITY: Provides Noteholders with Updated Business Plan
-----------------------------------------------------------
Party City Holdco Inc. disclosed in its Form 8-K Report filed with
the Securities and Exchange Commission that the Company has reached
confidentiality agreements with certain noteholders related to the
disclosure of certain information on the onset of some events.
On February 14, 2023, Party City Holdco Inc. entered into
confidentiality agreements with certain holders of 8.75% Senior
Secured First Lien Notes due 2026 and Senior Secured First Lien
Floating Rate Notes due 2025. Pursuant to the Confidentiality
Agreements, it agreed to publicly disclose certain information upon
the occurrence of certain events -- Cleansing Materials --
including an updated business plan prepared by the Company and
provided to such holders.
Among others, Party City projects EBITDA to steadily improve from
$135 million this year to $276 million in 2025, driven by increased
revenues, reduced transitory costs, closing of unprofitable stores
and lease restructuring savings, benefits of operational leverage
including the impact of transforming a significant portion of its
fleet to NXTGEN.
The Cleansing Materials are based solely on information available
to the Company as of the date of the Cleansing Materials and were
not prepared with a view toward public disclosure. The Cleansing
Materials should not be relied on by any party for any reason.
A full-text copy of the regulatory filing is available for free at
https://tinyurl.com/33p9hpjh
About Party City Holdco
Party City Holdco Inc. (NYSE: PRTY) is the global leader in the
celebrations industry, with its offerings spanning more than 70
countries around the world. It is also the largest designer,
manufacturer, distributor, and retailer of party goods in North
America. Party City Holdco had 761 company-owned stores as of
September 2022. It is headquartered in Woodcliff Lake, N.J. with
additional locations throughout the Americas and Asia.
On Jan. 17, 2023, Party City Holdco and its domestic subsidiaries
sought protection under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. S.D. Texas Lead Case No. 23-90005). Party City Holdco
disclosed total assets of $2,869,248,000 against total debt of
$3,022,960,000 as of Sept. 30, 2022.
Judge David R. Jones oversees the cases.
The Debtors tapped Paul, Weiss, Rifkind, Wharton & Garrison, LLP
and Porter Hedges, LLP as legal counsels; Moelis & Company, LLC as
investment banker; A&G Realty Partners as real estate consultant;
and AlixPartners, LLP as restructuring advisor. David Orlofsky,
managing director at AlixPartners, serves as the Debtors' chief
restructuring officer. Kroll Restructuring Administration, LLC is
the claims, noticing and solicitation agent.
Davis Polk & Wardwell, LLP and Lazard serve as legal counsel and
investment banker, respectively, to the ad hoc group of first lien
holders.
PRECISION 1 CONTRACTING: Taps Meltzer Lippe Goldstein as Counsel
----------------------------------------------------------------
Precision 1 Contracting, Inc. seeks approval from the U.S.
Bankruptcy Court for the Southern District of New York to hire
Meltzer Lippe Goldstein & Breitstone, LLP.
The Debtor requires legal counsel to:
a. give advice with respect to the powers and duties of the
Debtor in the continued management of its property and affairs;
b. negotiate with creditors and work out a plan of
reorganization and take the necessary legal steps in order to
effectuate such a plan;
c. prepare legal papers;
d. appear before the bankruptcy court;
e. attend meetings and negotiate with representatives of
creditors and other parties in interest;
f. advise the Debtor in connection with any potential sale of
its business and assets;
g. take any necessary action to obtain approval of a
disclosure statement and confirmation of a plan of liquidation;
and
h. perform all other legal services.
The hourly rates charged by the firm's attorneys and
paraprofessionals are as follows:
Partners $425 to $700
Counsel $400 to $700
Associates $315 to $600
Paraprofessional $220 to $240
Prior to the petition date, the firm received a retainer in the
amount of $25,000 from the Debtor.
Scott Steinberg, Esq., a partner at Meltzer Lippe, disclosed in
court filings that his firm is a "disinterested person" as that
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Scott A. Steinberg, Esq.
Meltzer, Lippe, Goldstein & Breitstone, LLP
190 Willis Avenue
Mineola, NY 11501
Telephone: (516) 747-0300
Email: ssteinberg@meltzerlippe.com
About Precision 1 Contracting
Precision 1 Contracting, Inc. operates an HVAC contracting business
in Port Chester, N.Y.
Precision 1 Contracting filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Case No.
23-22003) on Jan. 4, 2023, with $36,521 in assets and $3,000,526 in
liabilities. Corinne Pasqualini, president of Precision 1
Contracting, signed the petition.
Judge Sean H. Lane presides over the case.
Scott A. Steinberg, Esq., at Meltzer Lippe Goldstein & Breitstone,
LLP represents the Debtor as counsel.
PREMIER BRANDS: S&P Downgrades ICR to 'SD' on Distressed Exchange
-----------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on U.S.-based
Premier Brands Group Holdings LLC to 'SD' (selective default) from
'CCC' and lowered its rating on its senior secured term loan to 'D'
from 'CCC'.
S&P said, "We will likely raise the corporate credit rating to the
'CCC' category following our review of the company's amended
capital structure and liquidity.
"We are lowering our issuer credit rating on Premier Brands to 'SD'
and lowering our rating on its senior secured term loan to 'D'
because of the company's recent $3.5 million repurchase of its term
loan at 20% discount in February 2023."
The buyback was done as part of its recent refinancing transaction
in which the maturities of its capital structure were extended from
2024 to 2026, and the asset-backed lending (ABL) facility was
upsized to $240 million from $175 million through May 15, 2023. The
terms of the term loan were also altered including interest rates
that step up annually and include a paid in kind (PIK) component
and its leverage covenant was loosened.
Its recent debt repurchase follows the company's $5 million
repurchase in November 2022 and $16 million repurchase in April
2022, during which the company did not make the mandatory excess
cash flow sweep payment on its term loan when it was due.
The company had received a waiver at the time to be able to use the
excess cash flow funds to prepay debt at a 20% discount to par,
which was approved by lenders. We viewed these previous buybacks as
nonmaterial at the time.
S&P views the transactions as a tantamount to a default because
lenders are receiving less than they were originally promised.
S&P will monitor Premier Brands' ability to meet its obligations
and will reassess our ratings when more information becomes
available regarding the company's long-term capital plans and
liquidity position.
ESG credit indicators: E2,S3,G3
PRETIUM PKG: $350M Bank Debt Trades at 29% Discount
---------------------------------------------------
Participations in a syndicated loan under which Pretium PKG
Holdings Inc is a borrower were trading in the secondary market
around 70.9 cents-on-the-dollar during the week ended Friday,
February 17, 2023, according to Bloomberg's Evaluated Pricing
service data.
The $350 million facility is a Term loan that is scheduled to
mature on October 1, 2029. The amount is fully drawn and
outstanding.
Pretium PKG Holdings, Inc. Is a manufacturer of rigid plastic
containers for variety of end markets, including food and beverage,
chemicals, healthcare, wellness and personal care. Pretium PKG
Holdings, Inc. is a portfolio company of Clearlake since January
2020.
PUG LLC: $327.5M Bank Debt Trades at 20% Discount
-------------------------------------------------
Participations in a syndicated loan under which Pug LLC is a
borrower were trading in the secondary market around 80.2
cents-on-the-dollar during the week ended Friday, February 17,
2023, according to Bloomberg's Evaluated Pricing service data.
The $327.5 million facility is a Term loan that is scheduled to
mature on February 13, 2027. About $322.6 million of the loan is
withdrawn and outstanding.
PUG LLC provides an online marketplace for secondary tickets along
with payment support, logistics, and customer service. It acquired
the StubHub business of eBay Inc.
R.W. DAVIDSON: Seeks to Hire Seiller Waterman as Legal Counsel
--------------------------------------------------------------
R.W. Davidson Contracting, LLC seeks approval from the U.S.
Bankruptcy Court for the Eastern District of Kentucky to employ
Seiller Waterman, LLC.
The Debtor requires legal counsel to:
a. give advice with respect to the powers and duties of the
Debtor in the continued operations of its business and management
of its assets;
b. take all necessary action to protect and preserve the
Debtor's estate, including the prosecution of actions on behalf of
the Debtor, the defense of any actions commenced against the
Debtor, negotiations concerning all litigation in which the Debtor
is involved, if any, and objecting to claims filed against the
estate;
c. prepare legal papers; and
d. perform other legal services in connection with the Debtor's
Chapter 11 case and the formulation and implementation of its
Chapter 11 plan.
The firm will be paid at these rates:
David M. Cantor $400 per hour
Neil C. Bordy $400per hour
William P. Harbison $350per hour
Joseph H. Haddad $350per hour
Paralegals $140per hour
Law Clerk $125per hour
In addition, the firm will receive reimbursement for out-of-pocket
expenses incurred.
The firm received from the Debtor a retainer in the amount of
$16,768.
Neil Bordy, Esq., a partner at Seiller Waterman, disclosed in a
court filing that his firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Neil C. Bordy, Esq.
Seiller Waterman, LLC
Meidinger Tower, 22nd Floor
462 S. Fourth Street
Louisville, KY 40202
Telephone: (502) 584-7400
Facsimile: (502) 583-2100
Email: cantor@derbycitylaw.com
About R.W. Davidson Contracting
R.W. Davidson Contracting, LLC sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. E.D. Ky. Case No. 22-30304) on
Dec. 30, 2022, with up to $500,000 in assets and up to $1 million
in liabilities. Robert W. Davidson, president of R.W. Davidson,
signed the petition.
Judge Tracey N. Wise oversees the case.
Neil C. Bordy, Esq., at Seiller Waterman, LLC is the Debtor's legal
counsel.
R7 LEASE PURCHASE: Taps Whitsell and Company as Accountant
----------------------------------------------------------
R7 Lease Purchase, Inc. seeks approval from the U.S. Bankruptcy
Court for the Eastern District of Pennsylvania to employ Whitsell
and Company, P.C. as accountant.
The firm will prepare the Debtor's income tax returns as required
under the law as well as the monthly operating reports required by
the bankruptcy court.
The firm will be paid at the rate of $275 per hour.
Dan Whitsell, a partner at Whitsell and Company, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Dan Whitsell
Whitsell and Company, P.C.
1275 Road to Six Flags St # 100
Arlington, TX 76011
Tel: (817) 461-0041
Fax: (817) 795-0025
Email: cpa@whitsellandcompany.com
About R7 Lease Purchase
R7 Lease Purchase, Inc. sought protection for relief under Chapter
11 of the Bankruptcy Code (Bankr. E.D. Pa. Case No. 22-13287) on
Dec. 7, 2022, with $100,001 to $500,000 in assets and $500,001 to
$1 million in liabilities. Judge Ashely M. Chan oversees the case.
Ellen M. McDowell, Esq., at Mcdowell Law, PC and Whitsell and
Company, P.C. are the Debtor's legal counsel and accountant,
respectively.
RAGSTER INVESTMENT: Court OKs Interim Cash Collateral Access
------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Texas, Fort
Worth Division, authorized Ragster Investment Group, Inc. to use
cash collateral on an interim basis in accordance with the budget.
The Debtor has an immediate need to use the cash collateral of VFS
US, LLC, Sumitomo Mitsui Finance & Leasing Co., Ltd., BMO Harris
Bank, N.A., and Quantum 222 Trust, the secured creditors claiming
liens on the Debtor's personal property including cash and
accounts.
The Debtor requires the use of cash collateral to continue the
operation of its business.
The Secured Lenders are granted valid, binding, enforceable, and
perfected liens co-extensive with the Secured Lenders' pre-petition
liens in all currently owned or hereafter acquired property and
assets of the Debtor.
As adequate protection for the diminution in value of the interests
of the Secured Lenders, the Secured Lenders are granted replacement
liens and security interests, in accordance with Bankruptcy Code
Sections 361, 363, 364(c)(2), 364(e), and 552, co-extensive with
their pre-petition liens.
The replacement liens granted to the Secured Lenders are
automatically perfected without the need for filing of a UCC-1
financing statement with the Secretary of State's Office or any
other such act of perfection.
A further hearing on the matter is set for February 23, 2023 at
9:30 a.m.
A copy of the Court's order and the Debtor's budget is available at
https://bit.ly/3IBF0fq from PacerMonitor.com.
The Debtor projects $105,000 in income and $100,617 in total
expenses for one month.
About Ragster Investment Group, Inc.
Ragster Investment Group, Inc. sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 22-42825) on
November 22, 2022. In the petition signed by Timothy Ragster, chief
executive officer, the Debtor disclosed up to $10 million in both
assets and liabilities.
Judge Edward L. Morris oversees the case.
Joyce Lindauer, Esq., at JOYCE W. LINDAUER ATTORNEY, PLLC, is the
Debtor's legal counsel.
RAINMAKER HEALTH: Court OKs Cash Collateral Access Thru March 15
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida,
Orlando Division, authorized Rainmaker Health Solutions, Inc.,
d/b/a Pearl Vision, to use cash collateral on an interim basis
through March 15, 2023.
The Debtor requires the use of cash collateral to successfully
reorganize.
The Debtor is permitted to use cash collateral to pay:
(a) amounts expressly authorized by the Court, including
payments to the United States Trustee for quarterly fees;
(b) the current and necessary expenses set forth in the
budget; and
(c) the additional amounts as may be expressly approved in
writing by Creditor within 48 hours of the Debtor's request.
As previously reported by the Troubled Company Reporter, as of the
Petition Date, the Debtor has $19,762 of cash in deposit accounts
and is owed $17,414 in accounts receivable. The Debtor's other
personal property -- consisting of inventory, office furniture,
fixtures and optical equipment -- is valued at $131,495. The
Debtor's earnings going forward may arguably be subject to
creditors' alleged liens, and to the extent the future earnings may
be deemed to be cash collateral, the Debtor seeks authority to use
same.
On May 29 and June 1, 2020, The Huntington National Bank filed a
UCC Statement against the Debtor's assets on account of a U.S.
Small Business Administration loan. On June 5, 2022, Huntington
filed another UCC Statement against the Debtor's assets.
The Debtor owes Huntington $528,107. However, according to the
Debtor, Huntington does not have a deposit control agreement with
the Debtor or the Debtor's bank, and therefore its lien on the
Debtor's deposit accounts is unenforceable. The Debtor believes the
property against which Huntington holds a valid lien consists of
$17,414 in accounts receivable; and other personal property valued
at $131,495, for a total aggregate value of $148,909 of personal
property that is subject to Huntington's liens.
On March 25, 2022, a UCC Statement was filed by Leaf Capital
Funding, LLC, against "Topcon Healthcare Optical Equipment in
addition, the collateral also shall include all parts, accessories,
accessions and attachments thereto, and all repayments,
substitutions and exchanges (including trade-ins)."
The Debtor owes Leaf Capital $40,390. The Debtor believes the
property against which Leaf Capital holds a valid lien on the
equipment valued at $41,635; and, arguably, perhaps also on the
proceeds therefrom.
The Court said Huntington and Leaf Capital will have a perfected
post-petition lien against cash collateral to the same extent and
with the same validity and priority as the pre-petition lien,
without the need to file or execute any documents as may otherwise
be required under applicable non-bankruptcy law.
The Debtor will maintain insurance coverage for its property in
accordance with the obligations under the loan and security
documents with Secured Creditors.
A copy of the Court's order and the Debtor's budget is available at
https://bit.ly/3Z0RTFi from PacerMonitor.com.
The Debtor projects total operating expenses, on a monthly basis,
as follows:
$36,232 for February 2023;
$37,233 for March 2023;
$36,533 for April 2023;
$29,233 for May 2023;
$29,733 for June 2023; and
$30,233 for July 2023.
About Rainmaker Health Solutions, Inc.
Rainmaker Health Solutions, Inc. operates a Pearle Vision franchise
located at 11024 W. Colonial Drive, Ocoee, FL 34761, providing
services ranging from comprehensive eye care to fitting
prescription eyeglasses, sunglasses, and contact lenses.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 23-00447) on February 6,
2023. In the petition signed by Kim Dawson, president, the Debtor
disclosed up to $500,000 in assets and up to $1 million in
liabilities.
Judge Tiffany P. Geyer oversees the case.
Jeffrey S. Ainsworth, Esq., at BransonLaw, PLLC, represents the
Debtor as legal counsel.
REVLON INC: D.J. Baker Resigns from Board of Directors
------------------------------------------------------
Revlon Inc. disclosed in its Form 8-K Report filed with the
Securities and Exchange Commission that on February 17, 2023, D.J.
(Jan) Baker, Esq., notified Revlon, Inc. of his resignation from
the Company's Board of Directors, effective immediately. The
resignation is not the result of any disagreement with the Company
with respect to any matter relating to its operations, policies or
practices. Mr. Baker served on the Restructuring and Investigation
Committees of the Board.
Upon effectiveness of Mr. Baker's resignation, Paul Aronzon will
become the sole member of the Investigation Committee.
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.
RIVERBED TECHNOLOGY: $900M Bank Debt Trades at 63% Discount
-----------------------------------------------------------
Participations in a syndicated loan under which Riverbed Technology
Inc is a borrower were trading in the secondary market around 37.3
cents-on-the-dollar during the week ended Friday, February 17,
2023, according to Bloomberg's Evaluated Pricing service data.
The $900 million facility is a Payment-in-Kind Term loan that is
scheduled to mature on December 7, 2026. The amount is fully drawn
and outstanding.
Riverbed Technology, Inc. provides software solutions. The Company
offers application performance monitoring, cloud migration, network
performance monitoring, and security solutions. Riverbed Technology
serves customers globally.
ROBERTSHAW US: $510M Bank Debt Trades at 40% Discount
-----------------------------------------------------
Participations in a syndicated loan under which Robertshaw US
Holding Corp is a borrower were trading in the secondary market
around 59.9 cents-on-the-dollar during the week ended Friday,
February 17, 2023, according to Bloomberg's Evaluated Pricing
service data.
The $510 million facility is a Term loan that is scheduled to
mature on February 28, 2025. The amount is fully drawn and
outstanding.
Robertshaw US Holding Corp. operates as holding company. The
Company, through its subsidiaries, provides environmental
consultancy services.
ROCKLEY PHOTONICS: Seeks to Hire Kroll as Administrative Advisor
----------------------------------------------------------------
Rockley Photonics Holdings Limited seeks approval from the U.S.
Bankruptcy Court for the Southern District of New York to employ
Kroll Restructuring Administration, LLC as its administrative
advisor.
The Debtors require an administrative advisor to:
(a) assist with, among other things, solicitation, balloting
and tabulation of votes, and prepare any related reports in support
of confirmation of a Chapter 11 plan, 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 other processing, solicitation, balloting and
administrative services.
The firm will charge these hourly fees:
Director of Solicitation $245
Solicitation Consultant $220
Director $175 - $245
Consultant/Senior Consultant $65 - $195
Technology Consultant $35 - $110
Analyst $30 - $60
The Debtors provided the firm an advance retainer of $75,000.
Benjamin Steele, a managing director at Kroll, disclosed in a court
filing that his firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Benjamin J. Steele
Kroll Restructuring Administration, LLC
55 East 52nd Street, 17th Floor
New York, NY 10055
Tel: (212) 257-5450
About Rockley Photonics Holdings
Rockley Photonics Holdings Limited specializes in the research and
development of integrated silicon photonics chipsets. The company
has developed a ground-breaking versatile, application specific,
third generation silicon photonics platform specifically designed
for the optical integration challenges facing numerous mega-trend
markets. The Company has partnered with multiple tier-1 customers
across markets to deliver complex optical systems required for
transformational sensors, communications, and medical product
realization.
Rockley Photonics filed a Chapter 11 bankruptcy petition (Bankr.
S.D.N.Y Case No. 23-10081) on Jan. 23, 2023. In the petition signed
by its chief executive officer, Richard A. Meier, the Debtor
disclosed $90,880,000 in assets and $120,733,000 in liabilities.
Judge Lisa G. Beckerman oversees the case.
The Debtor tapped Pillsbury Winthrop Shaw Pittman LLP as bankruptcy
counsel, Jefferies LLC as investment banker, and Alvarez & Marsal,
LLC as financial advisor. Walkers Law Firm is the Cayman Islands
counsel. Kroll Restructuring Administration, LLC is the claims and
noticing agent.
ROCKLEY PHOTONICS: Seeks to Hire Pillsbury Winthrop as Counsel
--------------------------------------------------------------
Rockley Photonics Holdings Limited seeks approval from the U.S.
Bankruptcy Court for the Southern District of New York to employ
Pillsbury Winthrop Shaw Pittman LLP as their bankruptcy counsel.
The firm's services include:
a. advising the Debtors of their rights, powers and duties
under the Bankruptcy Code;
b. assisting the Debtors in preparing their bankruptcy
schedules and statements of financial affairs;
c. preparing legal papers and reviewing all financial
documents to be filed by the Debtors;
d. taking all necessary actions to protect and preserve the
Debtors' estates, including prosecuting actions on the Debtors'
behalf, defending any action commenced against the Debtors, and
representing the Debtors in negotiations concerning litigation in
which they are involved;
e. preparing, filing and pursuing approval of the Debtor's
disclosure statement and confirmation of their Chapter 11 plan;
f. representing the Debtors in matters before the Office of
the U.S. Trustee, meeting of creditors and court proceedings and
hearings; and
g. performing all other legal services necessary to administer
the Debtors' Chapter 11 cases.
The attorneys presently designated to have primary responsibility
in representing the Debtors, and their hourly rates, are as
follows:
John A. Pintarelli, Partner $1,350
Joshua D. Morse, Partner $1,235
James J. Masetti, Partner $1,230
Dania Slim, Partner $1,135
Jonathan R. Doolittle, Special Counsel $1,120
Kwame O. Akuffo, Associate $945
Alana A. Lyman, Associate $765
Pillsbury received an aggregate of $1.25 million as retainers.
Joshua Morse , Esq., at Pillsbury, disclosed in a court filing that
his firm is "disinterested" as such term is defined in Section
101(14) the Bankruptcy Code.
Mr. Morse also made the following disclosures in response to the
request for additional information set forth in Paragraph D.1 of
the Revised U.S. Trustee Guidelines:
Question: Did you agree to any variations from, or
alternatives to, your standard or customary billing arrangements
for this engagement?
Response: Yes. Pillsbury professionals working on this matter
will bill at a ten percent discount to their standard hourly rates
due to what the firm considers unique circumstances in the case.
Question Do any of the professionals included in this
engagement vary their rate based on the geographic location of the
bankruptcy case?
Response: No.
Question: If you represented the client in the 12 months
prepetition, disclose your billing rates and material financial
terms for the prepetition engagement, including any adjustments
during the 12 months prepetition. If your billing rates and
material financial terms have changed postpetition, explain the
difference and the reasons for the difference.
Response: Pillsbury represented the client during the 12-month
period prepetition. The material financial terms for the
prepetition engagement remained the same as the engagement was
hourly-based. During the 12 month prepetition period,
Pillsbury’s billing rates were as follows, subject to the ten
percent discount:
2022 Rate 2023 Rate
John A. Pintarelli $1,250 $1,350
Joshua D. Morse $1,145 $1,235
Dania Slim $1,050 $1,135
James Masetti $1,140 $1,230
Jonathan Doolittle $1,035 $1,120
Kwame O. Akuffo $795 $945
Question: Has your client approved your prospective budget and
staffing plan, and, if so for what budget period?
Response: The Debtors and their professionals are currently
formulating a detailed budget, recognizing that in the course of a
case like the Debtors' Chapter 11 cases, it is highly likely that
there may be a number of unforeseen fees and expenses that will
need to be addressed by the Debtors and their professionals.
Pillsbury can be reached through:
Joshua D. Morse, Esq.
Jonathan Doolittle, Esq.
Pillsbury Winthrop Shaw Pittman LLP
Four Embarcadero Center, 22nd Floor
San Francisco, CA 94111-5998
Phone: (415) 983-1000
Fax: (415) 983-1200
Email: joshua.morse@pillsburylaw.com
jonathan.doolittle@pillsburylaw.com
About Rockley Photonics Holdings
Rockley Photonics Holdings Limited specializes in the research and
development of integrated silicon photonics chipsets. The company
has developed a ground-breaking versatile, application specific,
third generation silicon photonics platform specifically designed
for the optical integration challenges facing numerous mega-trend
markets. The Company has partnered with multiple tier-1 customers
across markets to deliver complex optical systems required for
transformational sensors, communications, and medical product
realization.
Rockley Photonics filed a Chapter 11 bankruptcy petition (Bankr.
S.D.N.Y Case No. 23-10081) on Jan. 23, 2023. In the petition signed
by its chief executive officer, Richard A. Meier, the Debtor
disclosed $90,880,000 in assets and $120,733,000 in liabilities.
Judge Lisa G. Beckerman oversees the case.
The Debtor tapped Pillsbury Winthrop Shaw Pittman LLP as bankruptcy
counsel, Jefferies LLC as investment banker, and Alvarez & Marsal,
LLC as financial advisor. Walkers Law Firm is the Cayman Islands
counsel. Kroll Restructuring Administration, LLC is the claims and
noticing agent.
ROCKLEY PHOTONICS: Seeks to Tap Jefferies LLC as Investment Banker
------------------------------------------------------------------
Rockley Photonics Holdings Limited seeks approval from the U.S.
Bankruptcy Court for the Southern District of New York to employ
Jefferies LLC as its investment banker.
The firm will render these services:
(a) M&A Transactions. Jefferies will provide the Debtors with
financial advice and assistance in connection with a possible sale,
disposition or other business transaction or series of transactions
involving all or a material portion of the equity or assets of one
or more entities comprising the Debtors, whether directly or
indirectly and through any form of transaction, including, without
limitation, merger, reverse merger, liquidation, stock sale, asset
sale, asset swap, recapitalization, reorganization, consolidation,
amalgamation, spin-off, splitoff, joint venture, strategic
partnership, license, a sale under section 363 of the Bankruptcy
Code (including any "credit bid" made pursuant to section 363(k) of
the Bankruptcy Code) or other transaction (any of the foregoing, an
"M&A Transaction").
(b) Financing. Jefferies will act as investment banker to the
Debtors in connection with any of the following (each, a
"Financing"): (i) the sale and/or placement, whether in one or more
public or private transactions, of (A) common equity, preferred
equity, and/or equity-linked securities of the Debtors (regardless
of whether sold by the Debtors or their securityholders),
including, without limitation, convertible debt securities
(individually and collectively, "Equity Securities"), and/or (B)
notes, bonds, debentures, bank debt, other credit facility, and/or
other debt securities of the Debtors, including, without
limitation, mezzanine, asset-backed securities, or any
debtor-in-possession financing for any Debtor entity (a "DIP")
(individually and collectively, "Debt" and any or a combination of
Equity Securities and/or Debt, "Instruments").
(c) Restructuring. Jefferies will provide advice and
assistance to the Debtors in connection with analyzing,
structuring, negotiating and effecting (including providing
valuation analyses as appropriate), and, act as financial advisor
to the Debtors in connection with, any restructuring,
recapitalization or modification of the Debtor's outstanding
indebtedness, however achieved, including, without limitation,
through any offer by the Debtors with respect to any outstanding
Debtor indebtedness, a solicitation of votes, approvals, or
consents giving effect thereto (including with respect to a plan of
reorganization or other plan pursuant to the Bankruptcy Code), the
execution of any agreement giving effect thereto, an offer by any
party to convert, exchange or acquire any outstanding Debtor
indebtedness, or any similar balance sheet restructuring involving
the Debtors (any such transaction considered in this paragraph is
hereinafter referred to as a "Restructuring"). For the avoidance of
doubt, the consummation of any chapter 11 plan shall be deemed a
Restructuring under the Engagement Agreement.
(d) Advisory Services. Perform the following financial
advisory services, among others, for the Debtors in connection with
a Transaction:
(1) becoming familiar with -- to the extent Jefferies
deems appropriate or as reasonably requested by the Debtors -- and
analyzing, the business, operations, properties, financial
condition and prospects of the Debtors;
(2) advising the Debtors on the current state of the
"restructuring market";
(3) assisting and advising the Debtors in developing a
general strategy for accomplishing a Transaction;
(4) assisting and advising the Debtors in implementing a
Transaction;
(5) assisting and advising the Debtors in evaluating and
analyzing a Transaction, including the value of the securities or
debt instruments, if any, that may be issued in any such
Transaction; and
(6) rendering such other financial advisory services as
may from time to time be agreed upon by the Debtors and Jefferies.
The firm will be compensated as follows:
a. Monthly Fee. A monthly fee (the "Monthly Fee") equal to
$100,000 per month until the expiration or termination of the
Engagement Agreement. The first Monthly Fee shall only be earned
and payable upon the Debtor becoming a debtor under the Bankruptcy
Code, and each subsequent Monthly Fee shall be payable in advance
on each monthly anniversary thereafter. Following the payment of
four Monthly Fees under the Engagement Agreement, an amount equal
to fifty percent of all Monthly Fees actually paid to Jefferies
shall be credited, to the extent previously paid, once against the
M&A Transaction Fee or Restructuring Fee, if any, payable to
Jefferies by the Debtor.
b. Restructuring Fee. A fee in an amount equal to $2 million
payable upon consummation of a Restructuring, including upon the
effective date of a confirmed chapter 11 plan (the "Restructuring
Fee").
c. M&A Transaction Fee. Promptly upon closing of an M&A
Transaction, a fee equal to the greater of $4.0 million or 2.5
percent of Transaction Value("M&A Transaction Fee"), provided,
however, if an M&A Transaction is consummated through a "credit
bid" by existing holders of Notes (whether pursuant to the
Bankruptcy Code or other state law foreclosure process or
proceeding), the M&A Transaction Fee shall be reduced to (i) $2.0
million plus (ii) an additional 2.5 percent of that portion of
Transaction Value indicated by such credit bid greater than $75
million. A separate M&A Transaction Fee shall be payable in respect
of each M&A Transaction in the event that more than one M&A
Transaction shall occur.
d. Financing Fee(s). Promptly upon the closing of each
Financing involving Instruments provided by any investors other
than holders of the Notes (collectively, the "Existing Holders"), a
fee (the "Financing Fee") in an amount equal to 6.0 percent of the
aggregate gross proceeds received or to be received from the sale
of Instruments, provided, however: the fee earned related to any
Instruments provided by Existing Holders shall be equal to 4.5
percent of the aggregate gross proceeds received or to be received
from the sale or issuance of Instruments in excess of the sum of:
(x) $50 million, (y) Instruments issued in exchange for or to
repurchase $10.5 million of those certain Senior Secured Bridge
Notes due 2022 plus non-new money gross up of fees and any exchange
or repurchase of existing notes and purchase of notes related to
the interest make-whole, and (z) $25.5 million of additional
indebtedness plus non-new money gross up of fees and any exchange
or repurchase of existing notes and purchase of notes related to
the interest make-whole to be provided by the Existing Holders;
provided, further, that, notwithstanding the foregoing, the fee
earned related to a Debtor-in Possession Financing pursuant to the
Bankruptcy Code shall be equal to (a) $500,000 if the Instruments
are provided by one or more third-parties other than the Existing
Holders or (b) $250,000 if the Instruments are provided by the
Existing Holders. Notwithstanding anything to the contrary
contained herein or in the Engagement Agreement, with respect to
any Financing entered into on emergence from or after the
Debtor’s chapter 11 case, subsection (b) in the final proviso
shall not apply shall not apply.
Jeremy Matican, a managing director at Jefferies, 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:
Jeremy Matican
Jefferies LLC
520 Madison Avenue
New York, NY 10022
Tel: (212) 284-2300
About Rockley Photonics Holdings
Rockley Photonics Holdings Limited specializes in the research and
development of integrated silicon photonics chipsets. The company
has developed a ground-breaking versatile, application specific,
third generation silicon photonics platform specifically designed
for the optical integration challenges facing numerous mega-trend
markets. The Company has partnered with multiple tier-1 customers
across markets to deliver complex optical systems required for
transformational sensors, communications, and medical product
realization.
Rockley Photonics filed a Chapter 11 bankruptcy petition (Bankr.
S.D.N.Y Case No. 23-10081) on Jan. 23, 2023. In the petition signed
by its chief executive officer, Richard A. Meier, the Debtor
disclosed $90,880,000 in assets and $120,733,000 in liabilities.
Judge Lisa G. Beckerman oversees the case.
The Debtor tapped Pillsbury Winthrop Shaw Pittman LLP as bankruptcy
counsel, Jefferies LLC as investment banker, and Alvarez & Marsal,
LLC as financial advisor. Walkers Law Firm is the Cayman Islands
counsel. Kroll Restructuring Administration, LLC is the claims and
noticing agent.
SANUWAVE HEALTH: Opaleye Has 5.69% Stake as of Dec. 31
------------------------------------------------------
In a Schedule 13G filed with the Securities and Exchange
Commission, Opaleye Management Inc., disclosed that as of Dec. 31,
2022, it beneficially owns 31,428,571 shares of common stock of
SANUWAVE Health, Inc., representing 5.69% of the shares
outstanding.
A full-text copy of the regulatory filing is available for free
at:
https://tinyurl.com/4c8v9p95
About SANUWAVE Health
Headquartered in Suwanee, Georgia, SANUWAVE Health, Inc.
(OTCQB:SNWV) -- http://www.SANUWAVE.com-- is a shock wave
technology company using a patented system of noninvasive,
high-energy, acoustic shock waves for regenerative medicine and
other applications. The Company's initial focus is regenerative
medicine utilizing noninvasive, acoustic shock waves to produce a
biological response resulting in the body healing itself through
the repair and regeneration of tissue, musculoskeletal, and
vascular structures.
As of Sept. 30, 2022, the Company had $20.11 million in total
assets, $52.96 million in total liabilities, and a total
stockholders' deficit of $32.85 million.
New York, NY-based Marcum LLP, the Company's auditor since 2018,
issued a "going concern" qualification in its report dated May 13,
2022, citing that the Company has incurred significant losses and
needs to raise additional funds to meet its obligations and sustain
its operations and the occurrence of the events of default on the
Company's debt. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
In its September 2022 quarterly report, SANUWAVE said, "Our
recurring losses from operations, the events of default on the
Company's notes payable, and dependency upon future issuances of
equity or other financing to fund ongoing operations have raised
substantial doubt as to our ability to continue as a going concern
for a period of at least twelve months from the filing of this Form
10-Q. We will be required to raise additional funds to finance our
operations and remain a going concern; we may not be able to do so,
and/or the terms of any financings may not be advantageous to us."
SCUNGIO BORST: Exclusivity Period Extended to May 8
---------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Pennsylvania
extended the time Scungio Borst and Associates, LLC can keep
exclusive control of its Chapter 11 case, giving the company until
May 8 to file a bankruptcy plan and until July 5 to solicit votes
on that plan.
Scungio will use the extension to negotiate with the official
unsecured creditors' committee for a consensual plan of
liquidation.
Scungio Borst and Associates intends to file a plan to liquidate
its assets, which consist primarily of litigation claims in the
amount of $9.45 million against KPG-MCG Curtis Tenant, LLC and
employee retention credits in the amount of $550,000. The
liquidation or collection of these assets is the main unresolved
contingency in the company's bankruptcy case, according to the
motion filed by the company in court.
About Scungio Borst & Associates
Scungio Borst & Associates, LLC is a worldwide construction
services firm specializing in general construction, consulting and
project management. It is based in Camden, N.J.
Scungio Borst & Associates filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Pa. Case No.
22-10609) on March 11, 2022, listing as much as $50 million in both
assets and liabilities. Judge Ashely M. Chan oversees the case.
Judge Ashely M. Chan oversees the case.
Aris J. Karalis, Esq., at Karalis, PC and Bochetto & Lentz, PC
serve as the Debtor's bankruptcy counsel and special litigation
counsel, respectively.
The U.S. Trustee for Regions 3 and 9 appointed an official
committee of unsecured creditors in the Debtor's case on April 11,
2022. The committee is represented by Obermayer Rebmann Maxwell &
Hippel, LLP.
SELAH MOUNTAIN: Gets OK to Hire Kutner as Bankruptcy Counsel
------------------------------------------------------------
Selah Mountain Pharmacy, LLC received approval from the U.S.
Bankruptcy Court for the District of Colorado to hire Kutner Brinen
Dickey Riley, P.C.
The Debtor requires legal counsel to:
a. provide the Debtor with legal advice with respect to its
powers and duties;
b. assist the Debtor in the development of a plan of
reorganization under Chapter 11, Subchapter V;
c. file the necessary pleadings, reports and actions that may
be required in the continued administration of the Debtor's
property under Chapter 11;
d. take necessary actions to enjoin and stay until a final
decree the continuation of pending proceedings and to enjoin and
stay until a final decree the commencement of lien foreclosure
proceedings and all matters as may be provided under Section 362;
and
e. perform all other legal services necessary to administer
the Debtor's Chapter 11 case.
The firm holds a pre-bankruptcy retainer in the amount of $10,842.
As disclosed in court filings, Kutner does not represent interests
adverse to the estate in the matter upon which it is to be
engaged.
The firm can be reached through:
Keri L. Riley, Esq.
Kutner Brinen Dickey Riley, P.C.
1660 Lincoln Street, Suite 1720
Denver, CO 80264
Tel: (303) 832-2400
Email: klr@kutnerlaw.com
About Selah Mountain Pharmacy
Selah Mountain Pharmacy, LLC sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D. Colo. Case No. 23-10375) on
Feb. 3, 2023. In the petition signed by its managing member, John
D. Kutzko, the Debtor disclosed up to $500,000 in assets and up to
$1 million in liabilities.
Judge Joseph G. Rosania, Jr. oversees the case.
Jeffrey S. Brinen, Esq., at Kutner Brinen Dickey Riley, P.C., is
the Debtor's legal counsel.
SENIOR CARE: Wins Cash Collateral Access Thru March 27
------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida, Tampa
Division, authorized Senior Care Living VII, LLLC to use cash
collateral on an interim basis in accordance with the budget, with
a 10% variance.
The Debtor is permitted to use cash collateral until the earlier of
March 27, 2023, or the occurrence of a Termination Event, but only
on the terms of the Interim Order. The Debtor's cash collateral
access will be limited solely to the amounts, times, and categories
of expenses listed in the Budget.
Validus Senior Living will remain as manager of the Debtor's
assisted living facility.
As adequate protection of the Trustee's interests in its
collateral, the Trustee will have a valid, perfected, and
enforceable replacement lien and security interest in all assets of
the Debtor existing on or after the Petition Date of the same type
as set forth in the Bond Documents.
The Debtor will provide, or will cause Validus to provide, the
Trustee with (a) a weekly census of residents residing at the ALF
and (b) a weekly summary of all receipts and disbursements as
compared to the Budget. The Weekly Reporting will be provided to
the Trustee by 5 p.m. E.T. on the second business day of each week
with respect to the week ending the prior Friday.
The Debtor will maintain insurance coverage for its property in
accordance with the obligations under the loan and security
documents with the Trustee. The Debtor will provide proof of
insurance upon written request.
A Termination Event will be deemed to have occurred three days
after written notice sent by the Trustee to the Debtor, its
counsel, and the United States Trustee of the occurrence of any of
the following pursuant to the Order:
a. The Debtor fails to comply with the Budget (subject to the
Permitted Variance) and terms governing the Budget;
b. The Debtor terminates Validus as manager of the ALF and/or
fails to satisfy its postpetition payment obligations to Validus;
or
c. The Debtor fails to comply with, keep, observe, or perform
any of its agreements or undertakings under the Interim Order.
A further hearing on the matter is scheduled for March 27 at 2
p.m.
A copy of the order is available at https://bit.ly/41c6644 from
PacerMonitor.com.
About Senior Care Living VII
Senior Care Living VII, LLC sought Chapter 11 bankruptcy protection
(Bankr. M.D. Fla. Lead Case No. 22-00103) on Jan. 10, 2022, listing
up to $50 million in both assets and liabilities.
Judge Caryl E. Delano oversees the case.
Michael C. Markham, Esq., at Johnson Pope Bokor Ruppel & Burns,
LLP, is the Debtor's legal counsel while SC&H Group, Inc. serves as
the Debtor's financial advisor.
SERTA SIMMONS: Seeks to Hire Evercore Group as Investment Banker
----------------------------------------------------------------
Serta Simmons Bedding, LLC and its affiliates seek approval from
the U.S. Bankruptcy Court for the Southern District of Texas to
employ Evercore Group L.L.C. as their investment banker.
The firm's services include:
a. reviewing and analyzing the Debtors' capital structure,
financial condition, businesses, operations, and financial
projections;
b. advising and assisting the Debtors in a Restructuring,
Financing and/or Sale transaction, if the Debtors undertake such a
transaction;
c. providing financial advice in developing and implementing a
Restructuring, including (i) assisting the Debtors in developing a
restructuring plan or plan of reorganization, (ii) advising the
Debtors on tactics and strategies for negotiating with various
stakeholders regarding a restructuring plan or plan of
reorganization, (iii) providing testimony, as necessary, with
respect to matters on which Evercore has been engaged to advise the
Debtors in any proceedings under the Bankruptcy Code that are
pending before a court exercising jurisdiction over the Debtors,
and (iv) providing Weil, solely in its capacity as legal counsel to
the Debtors, with other financial restructuring advice as Evercore
and the Debtors may deem appropriate;
d. if the Debtors pursue a Financing, advising and assisting
the Debtors in identifying potential investors, negotiating with
potential investors, and structuring, negotiating, and effectuating
a Financing; and
e. if the Debtors pursue a Sale, assisting the Debtors in
identifying potential interested parties, negotiating with
potential interested parties, and structuring, negotiating, and
effectuating a sale.
The firm will be paid compensation as follows:
i. Monthly Fees. In addition to the other fees provided for in
the Engagement Letter, on the 1st day of each month commencing July
2022 until the earlier of the consummation of the Restructuring
transaction or the termination of Evercore's engagement, the
Debtors shall pay Evercore in advance, without notice or invoice, a
nonrefundable cash fee of $200,000 (a "Monthly Fee"). Each Monthly
Fee shall be earned upon Evercore's receipt thereof in
consideration of Evercore accepting the Engagement Letter and
performing services as described therein. So long as Monthly Fees
for months one through six have actually been earned and paid, 50
percent of each Monthly Fee beginning with the seventh Monthly Fee
actually paid shall be credited (without duplication) against any
Restructuring Fee, Sale Fee and/or Financing Fee payable up to a
maximum credit of $1,000,000 hereunder; provided, that, in the
event of a chapter 11 filing, any such credit of fees contemplated
by this sentence shall only apply to the extent that all such
Monthly Fees and the Restructuring Fee are approved in their
entirety by the Court pursuant to a final order not subject to
appeal and which order is acceptable to Evercore.
ii. Restructuring Fee. Upon the consummation of any
Restructuring, Evercore shall earn, and the Debtors shall promptly
pay to Evercore, a cash fee equal to $10,000,000 (a "Restructuring
Fee").
iii. Sale Fee. If the Debtors pursue a Sale of the Debtors or
any portion of their operations, Evercore shall earn and the
Debtors shall promptly pay to Evercore, a fee (a "Sale Fee") to be
determined by taking into account customary fees for comparable
services charged by other nationally recognized investment banks.
iv. Financing Fee. Upon consummation of any Financing and
incremental to any Restructuring Fee or Sale Fee, Evercore shall
earn, and the Debtors shall promptly pay to Evercore, a cash fee (a
"Financing Fee") equal to the following:
Financing As a Percentage
of
Financing Gross
Proceeds
Indebtedness Secured by a First Lien 1.00 percent
Indebtedness Secured by a Second
Lien, Unsecured and/or Subordinated 2.00 percent
Equity or Equity-linked Securities /
Obligations 3.50 percent
a) In connection with any debtor-in-possession financing
offered to the Company ("DIP Financing"), the Company shall pay
Evercore a fee of 1.00 percent of the Gross Proceeds of the DIP
Financing (a "DIP Financing Fee"), payable in full upon (i) the
execution of a commitment letter or other similar document in
respect of such financing or (ii) consummation of any DIP
Financing, at Evercore's sole discretion.
b) Up to 50 percent of any Financing Fee payable shall be
credited (without duplication) against any Restructuring Fee
actually paid after giving effect to any credit for Monthly Fees,
up to a maximum credit of $5,000,000 hereunder; provided, that, in
the event of a chapter 11 filing, any such credit shall only apply
to the extent that all such Financing Fees, Monthly Fees and
Restructuring Fee are approved in their entirety by the Court
pursuant to a final order not subject to appeal which order is
acceptable to Evercore.
v. Any fees payable shall be subject to an aggregate cap of
$17,000,000 (the "Fee Cap"). For the avoidance of doubt, the Fee
Cap shall not apply to any Sale Fee, to the extent applicable.
vi. In addition to any fees that may be payable to Evercore
and, regardless of whether any Restructuring, Financing and/or Sale
transaction occurs, the Debtors, on a monthly basis, shall promptly
reimburse to Evercore (a) all reasonable and documented
out-of-pocket expenses (including travel and lodging, data
processing and communications charges, courier services, and other
appropriate expenditures) and (b) other documented and reasonable
out-of-pocket fees and expenses, including expenses of counsel, if
any; provided, that in the event that any such out-of-pocket fees
and expenses (other than expenses of counsel) will exceed $25,000,
Evercore shall provide advance written notice to the Company before
incurring such fees and expenses. Evercore shall apply such
reimbursements against the non-refundable fee advance in the amount
of $200,000 (the "Fee Advance") previously paid by the Company to
Evercore pursuant to the 2020 Engagement Letter, to the extent such
reimbursable amounts do not exceed the difference of (x) $200,000
and (y) any reimbursements previously applied against the Fee
Advance.
vii. If Evercore provides services to the Debtors for which a
fee is not provided in the Engagement Letter, such services shall,
except insofar as they are the subject of a separate agreement, be
treated as falling within the scope of the Engagement Letter, and
the Debtors and Evercore will agree upon a fee for such services
based upon good faith negotiations.
viii. If a Restructuring, Financing and/or Sale is to be
completed, in whole or in part, through a pre-packaged plan of
reorganization or similar pre-arranged plan of reorganization
anticipated to involve the solicitation of acceptances of such plan
of reorganization in compliance with the Bankruptcy Code, by or on
behalf of the Company, from holders of any class of the Company's
Existing Obligations (i) (a) in the case of a pre-packaged plan of
reorganization, 75 percent of the fees pursuant to subparagraphs
17(ii), 17(iii) and 17(iv) above shall be earned and shall be
payable upon the execution of definitive agreements or delivery of
binding consents with sufficient majorities with respect to such
plan and (b) in the case of a pre-arranged plan of reorganization
(including any plan of reorganization for which solicitation of
votes in respect of such plan will commence prior to, but remain
incomplete upon, commencement of the chapter 11 proceedings), 50
percent of the fees pursuant to subparagraphs 17(ii), 17(iii) and
17(iv) above shall be earned and shall be payable upon obtaining
support (e.g., via an executed term sheet, restructuring support
agreement or other agreement in principle documenting the key terms
of such pre-arranged plan), from one or more of the Debtors' key
creditor classes that is sufficient to justify filing such
pre-arranged plan and (ii) the remainder of such fees shall be
earned and shall be payable upon confirmation of such plan of
reorganization; provided, further, that in the event that Evercore
is paid a fee in connection with a pre-packaged plan of
reorganization or similar pre-arranged plan of reorganization, and
such plan is not thereafter consummated, then such fee previously
paid to Evercore may be credited by the Debtors against any
subsequent fee that becomes payable by the Debtors to Evercore.
Evercore is a "disinterested person" within the meaning of section
101(14) of the Bankruptcy Code, and does not hold or represent any
interest materially adverse to the Debtors or their estates, as
disclosed in the court filings.
The firm can be reached through:
Roopesh Shah
Evercore Group L.L.C.
55 East 52nd Street
New York, NY 10055
Tel: +1 212 857 3100
About Serta Simmons Bedding
Serta Simmons Bedding, together with its non-debtor affiliates, are
manufacturers and marketers of bedding products in North America,
operating various bedding manufacturing facilities across the
United States and Canada.
Serta Simmons Bedding, LLC filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case
No. 23-90020) on Jan. 23, 2023. The petitions were signed by John
Linker, chief financial officer, treasurer and assistant secretary.
At the time of filing, the Debtors estimated $1 billion to $10
billion in both assets and liabilities.
Gabriel Adam Morgan, Esq. at the Weil, Gotshal & Manges represents
the Debtor as counsel. The Debtor also tapped Evercore Group, LLC
as its investment banker; FTI Consulting, Inc. as its Financial
Advisor; Epiq Corporate Restructuring, LLC as its claims and
noticing agent; and Pricewaterhousecoopers LLP as its tax services
advisor.
SERTA SIMMONS: Seeks to Hire Weil Gotshal & Manges as Attorney
--------------------------------------------------------------
Serta Simmons Bedding, LLC and its affiliates seek approval from
the U.S. Bankruptcy Court for the Southern District of Texas to
employ Weil, Gotshal & Manges LLP as their attorneys.
The firm will render these services:
a. take all necessary action to protect and preserve the value
of the Debtors' estates, including the prosecution of actions on
the Debtors' behalf, the defense of any actions commenced against
the Debtors, the negotiation of disputes in which the Debtors are
involved and the preparation of objections to claims filed against
the Debtors' estates;
b. prepare on behalf of the Debtors, as debtors in possession,
all necessary motions, applications, answers, orders, reports and
other papers in connection with the administration of the Debtors'
estates;
c. take all necessary actions in connection with any chapter
11 plan and related disclosure statement and all related documents,
and such further actions as may be required in connection with the
administration of the Debtors' estates; and
d. perform all other necessary legal services in connection
with the prosecution of these chapter 11 cases; provided, however,
that to the extent Weil determines that such services fall outside
of the scope of services historically or generally performed by
Weil as lead debtors' counsel in a bankruptcy case.
Weil will charge these hourly fees:
Partners/Counsel $1,375 to $2,095
Associates $750 to $1,345
Paraprofessionals $295 to $530
Ray Schrock, Esq., a partner at Weil, disclosed in a court filing
that his firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code.
In accordance with Appendix B-Guidelines for reviewing fee
applications filed by attorneys in larger Chapter 11 cases, Weil
disclosed the following:
Question: Did you agree to any variations from, or alternatives
to, your standard or customary billing arrangements for this
engagement?
Response: No.
Question: Do any of the professionals included in this
engagement vary their rate based on the geographic location of the
bankruptcy case?
Response: No.
Question: If you represented the client in the 12 months
pre-petition, disclose your billing rates and material financial
terms for the pre-petition engagement, including any adjustments
during the 12 months pre-petition. If your billing rates and
material financial terms have changed post-petition, explain the
difference and the reasons for the difference.
Response: Weil represented the Debtors in the 12 months prior
to the petition date. In 2022, Weil's hourly rates were $1,250 to
$1,950 for partners and counsel, $690 to $1,200 for associates, and
$275 to $495 for paraprofessionals. On Jan. 1, 2023, Weil adjusted
its standard billing rates for its professionals in the normal
course.
Question: Has your client approved your prospective budget and
staffing plan, and, if so for what budget period?
Response: Weil is developing a prospective budget and staffing
plan for the Chapter 11 cases, which the firm and the Debtors will
review following the close of the budget period to determine a
budget for the next period.
Weil can be reached through:
Ray C. Schrock, Esq.
Weil, Gotshal & Manges LLP
Ray C. Schrock, P.C.
767 Fifth Avenue
New York, NY 10153
Telephone: (212) 310-8000
Email: ray.schrock@weil.com
About Serta Simmons Bedding
Serta Simmons Bedding, together with its non-debtor affiliates, are
manufacturers and marketers of bedding products in North America,
operating various bedding manufacturing facilities across the
United States and Canada.
Serta Simmons Bedding, LLC filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case
No. 23-90020) on Jan. 23, 2023. The petitions were signed by John
Linker, chief financial officer, treasurer and assistant secretary.
At the time of filing, the Debtors estimated $1 billion to $10
billion in both assets and liabilities.
Gabriel Adam Morgan, Esq. at the Weil, Gotshal & Manges represents
the Debtor as counsel. The Debtor also tapped Evercore Group, LLC
as its investment banker; FTI Consulting, Inc. as its Financial
Advisor; Epiq Corporate Restructuring, LLC as its claims and
noticing agent; and Pricewaterhousecoopers LLP as its tax services
advisor.
SILVERADO STREET: Taps Law Offices of Michael Jay Berger as Counsel
-------------------------------------------------------------------
Silverado Street, LLC received approval from the U.S. Bankruptcy
Court for the Southern District of California to employ the Law
Offices of Michael Jay Berger as its bankruptcy counsel.
The firm's services include:
(a) assisting the Debtor in drafting its bankruptcy schedules,
statement of financial affairs, and other necessary documents;
(b) assisting the Debtor in complying the requirements of the
Office of the U.S. Trustee;
(c) communicating with creditors to explain the facts and
circumstances surrounding the Debtor's Chapter 11 case, investigate
possible claims against the Debtor, and gain their cooperation with
regards to the continued business of the Debtor; and
(d) other necessary legal services.
The hourly rates of the firm's attorneys and staff are as follows:
Michael Jay Berger, Esq. $595
Sofya Davtyan, Senior Associate Attorney $545
Carolyn M. Afari, Mid-level Associate Attorney $435
Robert Poteete, Mid-level Associate Attorney $435
Gary Baddin, Bankruptcy Analyst/Field Agent $275
Senior Paralegals and Law Clerks $250
Bankruptcy Paralegals $200
The Debtor paid the firm a $20,000 retainer.
Michael Jay Berger, Esq., the sole owner of the Law Offices of
Michael Jay Berger, 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 Jay Berger, Esq.
Law Offices of Michael Jay Berger
9454 Wilshire Blvd., 6th Floor
Beverly Hills, CA 90212-2929
Telephone: (310) 271-6223
Facsimile: (310) 271-9805
Email: michael.berger@bankruptcypower.com
About Silverado Street
Silverado Street, LLC owns a 9,000-square-foot single family
residence located at 7724 Prospect Place, La Jolla, Calif., valued
at $13 million. The Debtor is a tenant in common on an
approximately 1150-acre undeveloped property in Los Angeles County,
valued at $5 million.
Silverado Street filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Calif. Case No.
23-00108) on Jan. 20, 2023, with $18,000,000 in total assets and
$10,638,073 in total liabilities. William J. Barkett, managing
member, signed the petition.
Judge Margaret M. Mann oversees the case.
The Law Offices of Michael Jay Berger represents the Debtor as
counsel.
SONOMA PHARMACEUTICALS: Incurs $1.9 Million Net Loss in 3rd Quarter
-------------------------------------------------------------------
Sonoma Pharmaceuticals, Inc. has filed with the Securities and
Exchange Commission its Quarterly Report on Form 10-Q disclosing
a net loss of $1.94 million on $2.94 million of revenues for the
three months ended Dec. 31, 2022, compared to a net loss of
$944,000 on $2.90 million of revenues for the three months ended
Dec. 31, 2021.
For the nine months ended Dec. 31, 2022, the Company reported a net
loss of $3.84 million on $10.26 million of revenues compared to a
net loss of $2.14 million on $10.33 million of revenues for the
nine months ended Dec. 31, 2021.
As of Dec. 31, 2022, the Company had $13.93 million in total
assets, $8.37 million in total liabilities, and $5.56 million in
total stockholders' equity.
At Dec. 31, 2022 and March 31, 2022, the Company's accumulated
deficit amounted to $188,206,000 and $184,363,000, respectively.
The Company had working capital of $7,298,000 and $10,611,000 as of
Dec. 31, 2022 and March 31, 2022, respectively. The cash balance
at Dec. 31, 2022 and March 31, 2022 was $2,634,000 and $7,396,000,
respectively. Net cash used by operating activities during the
nine months ended Dec. 31, 2022 was $3,711,000.
Sonoma stated, "Management believes that the Company has access to
additional capital resources through possible public or private
equity offerings, debt financings, corporate collaborations or
other means; however, the Company cannot provide any assurance that
other new financings will be available on commercially acceptable
terms, if needed. If the Company is unable to secure additional
capital, it may be required to take additional measures to reduce
costs in order to conserve its cash in amounts sufficient to
sustain operations and meet its obligations. These measures could
cause significant delays in the Company's continued efforts to
commercialize its products, which is critical to the realization of
its business plan and the future operations of the Company. These
matters raise substantial doubt about the Company's ability to
continue as a going concern."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/0001367083/000168316823000879/sonoma_i10q-123122.htm
About Sonoma Pharmaceuticals
Sonoma Pharmaceuticals, Inc. -- http://www.sonomapharma.com-- is a
global healthcare company that develops and produces stabilized
hypochlorous acid, or HOCl, products for a wide range of
applications, including wound care, animal health care, eye care,
oral care and dermatological conditions. The Company's products
reduce infections, itch, pain, scarring and harmful inflammatory
responses in a safe and effective manner. In-vitro and clinical
studies of HOCl show it to have impressive antipruritic,
antimicrobial, antiviral and anti-inflammatory properties. Its
stabilized HOCl immediately relieves itch and pain, kills pathogens
and breaks down biofilm, does not sting or irritate skin and
oxygenates the cells in the area treated assisting the body in its
natural healing process. The Company sells its products either
directly or via partners in 54 countries worldwide.
Sonoma reported a net loss of $5.09 million for the year ended
March 31, 2022, compared to a net loss of $3.95 million for the
year ended March 31, 2021. As of Sept. 30, 2022, the Company had
$14.96 million in total assets, $7.94 million in total liabilities,
and $7.02 million in total stockholders' equity.
Atlanta, Georgia-based Frazier & Deeter, LLC, the Company's auditor
since 2021, issued a "going concern" qualification in its report
dated July 13, 2022, citing that the Company has incurred
significant losses and needs to raise additional funds to meet its
obligations and sustain its operations. These conditions raise
substantial doubt about its ability to continue as a going
concern.
SORRENTO THERAPEUTICS: Gets Court OK for Two 1st Day Motions
------------------------------------------------------------
Sorrento Therapeutics, Inc. (Nasdaq: SRNE), a biopharmaceutical
company dedicated to the development of life-saving therapeutics to
treat cancer, intractable pain, and infectious disease, on Feb. 16
disclosed that the U.S. Bankruptcy Court for the Southern District
of Texas granted approval of Sorrento's employee wages motion and
interim approval of its cash management motion, in connection with
Sorrento's chapter 11 petition, which was filed on February 13,
2023. Sorrento expects to seek approval of other customary "first
day" motions in the coming days.
Dr. Henry Ji, Ph.D., Chairman and Chief Executive Officer of
Sorrento, commented: "We are pleased to have received approvals
from the Court for these two motions, which will ensure Sorrento
has the ability to continue normal business operations, including
the payment of employee wages and benefits, as we move
forward—continuing our important work of developing new and
innovative therapies for patients struggling with cancer,
intractable pain, infectious disease, and more."
As of its chapter 11 filing, Sorrento had over approximately $1
billion in assets. However, due to the possibility of certain
actions by a litigation creditor, Sorrento and its wholly-owned,
non-operating subsidiary Scintilla Pharmaceuticals, Inc. sought
chapter 11 relief to safeguard its business and ensure the
continuation of business operations, while protecting and
maximizing value for stakeholders.
Scilex Holding Company (Nasdaq: SCLX, "Scilex"), which is
majority-owned by Sorrento, is not a debtor in Sorrento's chapter
11 case. Scilex is continuing to operate its business as usual,
focusing on growing revenues, offering innovative, non-opioid pain
management products, and developing meaningfully differentiated
programs that address significant unmet needs and lead to better
health outcomes for the millions of acute and chronic pain
patients.
About Sorrento Therapeutics
Sorrento -- http://www.sorrentotherapeutics.com/-- is a clinical
and commercial stage biopharmaceutical company developing new
therapies to treat cancer, pain (non-opioid treatments), autoimmune
disease and COVID-19. Sorrento's multimodal, multipronged approach
to fighting cancer is made possible by its extensive
immuno-oncology platforms, including key assets such as
next-generation tyrosine kinase inhibitors ("TKIs"), fully human
antibodies ("G-MAB(TM) library"), immuno-cellular therapies
("DAR-T(TM)"), antibody-drug conjugates ("ADCs"), and oncolytic
virus ("Seprehvec(TM)"). Sorrento is also developing potential
antiviral therapies and vaccines against coronaviruses, including
STI-1558, COVISHIELD(TM) and COVIDROPS(TM), COVI-MSCTM; and
diagnostic test solutions, including COVIMARK(TM).
Sorrento Therapeutics, Inc., and Scintilla Pharmaceuticals, Inc.,
sought Chapter 11 protection (Bankr. S.D. Tex. Lead Case No.
23-90085) on Feb. 13, 2023.
Sorrento disclosed assets in excess of $1 billion and liabilities
of about $235 million as of Feb. 10, 2023.
Jackson Walker LLP and Latham & Watkins LLP are serving as legal
counsel to Sorrento. M3 Partners is serving as restructuring
advisor. Stretto Inc. is the claims agent.
SORRENTO THERAPEUTICS: Hits Chapter 11 Bankruptcy Protection
------------------------------------------------------------
Jonathan Randles of The Wall Street Journal reports that
biopharmaceutical company Sorrento Therapeutics Inc. has filed for
bankruptcy weeks after being hit with judgments totaling more than
$173 million in a licensing dispute with affiliates of billionaire
health entrepreneur Patrick Soon-Shiong's NantWorks LLC.
Sorrento filed for chapter 11 on Monday, February 13, 2023, in the
U.S. Bankruptcy Court in Houston, an action that immediately pauses
NantWorks affiliates' attempt to collect the judgments awarded over
alleged breaches by Sorrento of an exclusive licensing agreement
between the companies.
About Sorrento Therapeutics
Sorrento -- http://www.sorrentotherapeutics.com/-- is a clinical
and commercial stage biopharmaceutical company developing new
therapies to treat cancer, pain (non-opioid treatments), autoimmune
disease and COVID-19. Sorrento's multimodal, multipronged approach
to fighting cancer is made possible by its extensive
immuno-oncology platforms, including key assets such as
next-generation tyrosine kinase inhibitors ("TKIs"), fully human
antibodies ("G-MAB(TM) library"), immuno-cellular therapies
("DAR-T(TM)"), antibody-drug conjugates ("ADCs"), and oncolytic
virus ("Seprehvec(TM)"). Sorrento is also developing potential
antiviral therapies and vaccines against coronaviruses, including
STI-1558, COVISHIELD(TM) and COVIDROPS(TM), COVI-MSCTM; and
diagnostic test solutions, including COVIMARK(TM).
Sorrento Therapeutics, Inc., and Scintilla Pharmaceuticals, Inc.,
sought Chapter 11 protection (Bankr. S.D. Tex. Lead Case No.
23-90085) on Feb. 13, 2023.
Sorrento disclosed assets in excess of $1 billion and liabilities
of about $235 million as of Feb. 10, 2023.
Jackson Walker LLP and Latham & Watkins LLP are serving as legal
counsel to Sorrento. M3 Partners is serving as restructuring
advisor. Stretto Inc. is the claims agent.
STARRY GROUP: Case Summary & 30 Largest Unsecured Creditors
-----------------------------------------------------------
Twelve affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Starry Group Holdings, Inc. 23-10219
38 Chauncy Street
Suite 200
Boston, MA 02111
Starry, Inc. 23-10220
Connect Everyone LLC 23-10221
Starry Installation Corp. 23-10222
Starry (MA), Inc. 23-10223
Starry Spectrum LLC 23-10224
Testco LLC 23-10225
Starry Spectrum Holdings LLC 23-10226
Widmo Holdings LLC 23-10227
Vibrant Composites Inc. 23-10228
Starry Foreign Holdings Inc. 23-10229
Starry PR Inc. 23-10230
Business Description: The Debtors are a fixed wireless broadband
internet service provider.
Chapter 11 Petition Date: February 20, 2023
Court: United States Bankruptcy Court
District of Delaware
Judge: Hon. Karen B. Owens
Debtors'
Legal
Counsel: Kara Hammond Coyle, Esq.
YOUNG CONAWAY STARGATT & TAYLOR, LLP
Rodney Square
1000 N. King Street
Wilmington, DE 19801
Tel: (302) 571-6600
Email: kcoyle@ycst.com
- and -
LATHAM & WATKINS LLP
Debtor's
Investment
Banker: PJT PARTNERS LP
Debtor's
Financial
Advisor: FTI CONSULTING, INC.
Debtors'
Claims,
Noticing &
Solicitation
Agent and
Administrative
Advisor: KURTZMAN CARSON CONSULTANTS LLC
Total Assets as of Sept. 30, 2022: $270,649,000
Total Debts as of Sept. 30, 2022: $309,790,000
The petitions were signed by William J. Lundregan as authorized
officer.
Full-text copies of three of the Debtors' petitions are available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/XAM3RWI/Starry_Group_Holdings_Inc__debke-23-10219__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/XOD3GSA/Starry_Inc__debke-23-10220__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/XLBJ3FQ/Connect_Everyone_LLC__debke-23-10221__0001.0.pdf?mcid=tGE4TAMA
Consolidated List of Debtors' 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Benchmark Electronics Trade $3,854,455
(Thailand) Public Company Limited
Budsaba Pusawat
94 Moo 1, Hi-Tech
Industrial Estate
Banlane, Bang Pa-In, Ayudhaya, 13160
Thailand
Tel: +66-35-276300 Ext. 6591
Email: budsaba.pusawat@bench.com
2. Palantir Technologies Inc. Trade $3,737,731
Michelle Smith, AR Manager
1555 Blake Street, Suite 250
Denver, CO 80202
Tel: 650-252-0276
Email: accountsreceivable@palantir.com
3. American Electric Power Trade $1,702,175
Jonthan E McFadden,
Accounting Mgr
1 Riverside Plaza
Columbus, OH 43215-2372
Tel: 614-716-2674
Email: jemcfadden@aep.com
4. Cantor Fitzgerald & Co. Common Stock $907,725
Sage Kelly, Managing Director Purchase
110 East 59th Street Agreement
New York, NY 10022
Tel: 212-294-8071
Email: sage.kelly@cantor.com
5. LinkSys USA, Inc. Trade $856,000
Maria De Dungca, Credit/
Collection Analyst Supervisor
12045 E. Waterfront Drive
Playa Vista, CA 90094
Tel: 310-751-3030
Email: maria.dungca@belkin.com
6. Donnelley Financial Solutions Trade $834,913
Kelly Strache
35 W. Wacker Drive
Chicago, IL 60601
Tel: 855-542-9011
Email: accounts-receivable@dfinsolutions.com
7. Zaram Technology, Inc. Trade $765,810
Phoebe (Yuting) Liu
41 Seongnam-Daero 925Beon-Gil
2nd Floor
Bundang-Gu Seongnam-Si
Gyonggi-Do,000000
Republic of Korea
tel: +82-31-779-6760
Email: yuting@zaram.com
8. Charles Industries, LLC Trade $693,913
Caitlin Godfrey,
Accounting Specialist
1450 American Lane - 20th Floor
Schaumburg, IL 60173-5492
Tel: 847-258-8321
Email: cgodfrey@charlesindustries.com
9. Sayes Technology CP, Ltd. Trade $622,065
Stephen - Account Rep
No. 8-1 Tongfuyu Industrial Park
3rd Floor
Baoan District Shenzhen, 518100
China
Tel: 86-755-28062196
Email: stephen@sayestech.com
10. Google Inc. Trade $576,900
Ruth Porat
1600 Ampitheatre Pkwy
Mountain Vide, CA 94043
Tel: 650-253-0000
Email: collections@google.com
11. Zyxel Communications, Inc. Trade $429,927
Abigail (Abby) Wung
1130 N Miller Street
Anaheim, CA 92806
Tel: 714-632-0882 ext. 161
Email: abigail.wung@zyxel.com
12. Comcast Trade $392,819
Jason Armstrong, CFO Treasurer
1701 JFK Blvd
Philadelphia, PA 19103-2838
Tel: 215-286-1700
Fax: 215-981-7790
13. Deloitte & Touche LLP Professional $316,543
Matt Levine Services
200 Berkeley Street
Boston, MA 02116
Tel: 978-902-3134
Email: deloittepayments@deloitte.com
14. The Boston Consulting Professional $265,300
Group, Inc. Services
Jeanne Kwong Bickford
10 Hudson Yards
New York, NY 10011
Tel: 212-446-2800
Email: usaccountsreceivable@bcg.com
15. DHL Express USA Inc. Trade $259,782
Greg Hewitt
16592 Collections Center Drive
Chicago, IL 60693
Tel: 800-722-0081
Fax: 888-221-6211
Email: greg.hewitt@dhl.com
16. Crown Castle Fiber LLC Trade $244,893
Kenneth Freedman
2000 Corporate Drive
Canonsburg, PA 15317
Tel: 855-913-4237
Email: fiberbillinghd@crowncastle.com
17. Conerstone Communications Trade $223,246
Consulting Group, LLC
Jeff Ogle, President
31 Nicklaus Drive
Rome, GA 30165
Tel: 770-298-3350
Email: jogle@cornerstonecommunicationsgroup.com
18. Wallaby Connect LLC Trade $215,945
Alejandra (Ale) Medina
4758 Bay Quarter CT
Virginia Beach, VA 23455
Tel: 757-935-7296
Email: alheford@gmail.com
19. Enersys Delaware Inc. Trade $207,752
Vicki L Miller, Collection Analyst I
16904 Solutions Center
Chicago, IL 60677-1006
Tel: 610-208-1881
Email: vicki.miller2@enersys.com
20. AVNet Electronics Marketing Trade $197,585
John Paolo S. De la Cruz
Credit & Collections Analyst
5400 Prairie Stone Parkway
Hoffman Estates, IL 60192
Tel: 469-627-1196
Email: john.delacruz@avnet.com
21. UL, LLC Trade $185,900
Anand V, Sr. Collector -
Global Business Services
75 Remittance Drive, Ste #1524
Chicago, IL 60675-1524
Tel: 847-664-6636
Email: anand.v@ul.com
22. Shenglu Telecommunication Trade $174,532
Co. Ltd.
Betty Su
No. 4 Jinye Second Road
Xinan Industry,
Sanshui Guangdong Province, 528100
China
Tel: +86-757-87744989
Email: juanita.yang@kingsignal.com
23. Boardtek Electronics Corp Trade $166,323
Karen Hsu
16, Ching Chien 1st Rd,
Kuan-Yin Industrial Park
Taoyuan N/A, 32163
Taiwan
Tel: +886-936658338
Email: karen.hw.hsu@avaryholding.com
24. Intelligent Manufacturing Trade $166,284
Solutions, LLC
Nick Bosia, Staff Accountant
645 Harvey Rd
Manchester, NH 03103
Tel: 603-836-6001
Email: nicholas.bosia@imscorp-us.com
25. Arrow Electronics, Inc. Trade $154,086
Francisco Quintero
9201 East Dry Creek Road
Centennial, CO 80112
Tel: 720-642-9317
Email: francisco.quintero@arrow.com
26. United Technologies Services, Inc. Trade $148,290
Mike Giustiniani
201 Mill Bridge Ct.
Port Republic, NJ 08241
Tel: 732-682-1233
Email: mgiustiniani@utechserviceinc.com
27. Meta Platforms, Inc. Trade $143,277
Jose Alfaro Leon, Collections Analyst
1601 Willow Road
Menlo Park, CA 94025
Tel: 512-361-4269
Email: jaalfaroleon@fb.com
28. Abside Networks, Inc. Professional $141,666
Laurent Perraud Services
16 Heritage Road
Acton, MA 01720
Tel: 978-393-1975
Email: ar@abside-networks.com
29. Farley White Management Co Leases $143,886
Erin McPhillips, Tenant Coordinator
155 Federal Street, 18th Floor
Boston, MA 02110
Tel: 978-341-5999
Email: emcphillips@farleywhite.com
30. QCA Tech Limited Trade $135,147
Chloe Zhang
No. 50 Hoi Yuen Road
Kwun Tong, Kowloon
Hong Kong
Tel: 8618028249290
Email: chloe@ks-ic.com
STRUCTURAL TECHNOLOGY: Hires David J. Hawks CPA as Accountant
-------------------------------------------------------------
Structural Technology Custom Homes, LLC received approval from the
U.S. Bankruptcy Court for the District of Arizona to employ David
J. Hawks, CPA, PLLC.
The Debtor requires an accountant to:
a. perform bookkeeping services necessary to gather data for
report filings;
b. prepare monthly operating reports;
c. prepare periodic operating reports;
d. review the Debtor's historic financial performance as well as
the history of its bankruptcy;
e. work with the Debtor to develop a longer-term financial
forecast;
f. assist in developing a feasibility analysis for a plan of
reorganization;
g. assist in developing a liquation analysis for the plan;
h. testify at the plan confirmation hearing; and
i. provide other Chapter 11 consulting services, if necessary.
The firm will be paid at hourly rates ranging from $200 to $300.
David Hawks, a partner at David J. Hawks, CPA, disclosed in a court
filing that his firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
David J. Hawks
David J. Hawks, CPA, PLLC
2812 N. Norwalk, Ste. 115
Mesa, AZ 85215
Tel: (480) 626-5557
About Structural Technology Custom Homes
Structural Technology Custom Homes, LLC is a home repair company
serving Mesa, Ariz., and the surrounding areas.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Ariz. Case No. 23-00080) on Jan. 6,
2023. In the petition signed by its manager, Joseph Rubanow, the
Debtor disclosed up to $10 million in both assets and liabilities.
Judge Brenda K. Martin oversees the case.
D. Lamar Hawkins, Esq., at Guidant Law, PLC and David J. Hawks,
CPA, PLLC are the Debtor's legal counsel and accountant,
respectively.
TENTRR INC: Gets OK to Hire Capital Recovery Group as Appraiser
---------------------------------------------------------------
Tentrr, Inc. received approval from the U.S. Bankruptcy Court for
the District of Delaware to employ Capital Recovery Group, LLC as
its appraiser.
The firm has agreed to provide the Debtor with:
(a) an on-site physical inspection of a representative sample
of campsites to determine the average degree to which they are
outfitted with equipment, and the condition of the Debtor's
assets;
(b) an analysis of the remaining useful life and current
depreciation of the assets from all sources;
(c) a qualified opinion of the aggregate gross and net force
liquidation values for the entirety of the assets as well as fair
market value of those assets; and
In addition, personnel of Capital Recovery Group will testify as
valuation expert in proceedings before the court if requested by
the Debtor.
Capital Recovery Group will be paid $350 an hour for the services
of Kenneth Katz and will be paid $200 an hour for the services of
Brian Mangan. In addition, the firm will be reimbursed for all
out-of-pocket expense.
The retainer fee is $2,500.
Capital Recovery Group neither holds nor represents any interest
adverse to the Debtor's estate, according to court filings.
The firm can be reached through:
Anand Subramanian
Capital Recovery Group LLC
1654 King St # 9
Enfield, CT 06082
Phone: +1 860-623-9060
About Tentrr Inc.
Tentrr Inc. -- https://www.tentrr.com/ -- offers places to camp in
the U.S. It provides tent camps and fully set up campsites for
camping on private land or state parks.
Tentrr filed a petition for relief under Subchapter V of Chapter 11
of the Bankruptcy Code (Bankr. D. Del. Case No. 23-10000) on Jan.
2, 2023. In the petition filed by its chief executive officer,
Anand Subramanian, the Debtor disclosed between $1 million and $10
million in both assets and liabilities. David M. Klauder has been
appointed as Subchapter V trustee.
The Debtor tapped Mayerson and Hartheimer, PLLC as bankruptcy
counsel; The Rosner Law Group LLC as local counsel; and Omni Agent
Solutions, Inc. as notice, claims, solicitation and administrative
agent.
TEXAS CORE: Court OKs Interim Cash Collateral Access
----------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Texas,
Lubbock Division, authorized Texas Core Energy, LLC to use cash
collateral on an interim basis in accordance with the budget.
The Debtor requires the use of cash collateral to purchase
materials, pay payroll, pay utilities, and otherwise pay for
supplies and other expenses vital to its operations.
The Debtor has outstanding indebtedness to Pioneer Bank, FSB.
Pioneer asserts a lien against the Debtor's assets, including cash,
accounts receivable, inventory, equipment, and real estate, to
secure the repayment of the Debtor's indebtedness to Pioneer.
The Debtor currently reflects on its books and records cash in the
amount of $61,007, accounts receivable in the aggregate amount of
$497,390, inventory in the aggregate amount of $2.524 million,
equipment valued at $689,019, and real estate in the amount of $1.1
million.
The Debtor currently has in its possession $61,007 of cash in the
form of deposits in its depository accounts from collections of
outstanding accounts receivable owing from its customers.
In addition to the deposits from the collection of the accounts
receivable, the Debtor has outstanding accounts receivable relating
to the Debtor's sales and supply business in the sum of $166,980.
The Debtor has outstanding accounts receivable relating to the
Debtor's fabrication business in the sum of $330,410.
As adequate protection, Pioneer is granted continuing,
post-petition, replacement liens in, to and over all of the
Debtor's property and assets in the same nature, extent, validity,
and priority of Pioneer's pre-petition liens as of the Petition
Date.
A final hearing on the matter is set for March 22, 2023 at 1:30
p.m.
A copy of the Court's order and the Debtor's budget is available at
https://bit.ly/3Kldbt1 from PacerMonitor.com.
The Debtor projects total operating expenses, on a weekly basis, as
follows:
$24,035 for the week ending February 17, 2023;
$24,035 for the week ending February 24, 2023;
$24,035 for the week ending March 3, 2023;
$24,035 for the week ending March 10, 2023;
$24,035 for the week ending March 17, 2023;
About Texas Core Energy, LLC
Texas Core Energy, LLC is engaged in the design and fabrication of
API Tanks and ASME Vessels.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Tex. Case No. 23-50021) on February
14, 2023. In the petition signed by Taha Habib, manager, the Debtor
disclosed up to $10 million in assets and up to $50 million in
liabilities.
Brad W. Odell, Esq., at Mullin Hoard & Brown, LLP, represents the
Debtor as legal counsel.
TIMES SQUARE JV: Taps Emerald Capital Advisors as Financial Advisor
-------------------------------------------------------------------
Times Square JV LLC and its affiliates received approval from the
U.S. Bankruptcy Court for the Southern District of New York to
employ Emerald Capital Advisors Corp. as their financial advisor.
The firm's services include:
a. managing the preparation of reports related to the Debtors'
restructuring process;
b. advising the Debtors regarding various motions;
c. preparing the Debtors' 13-week cash flow budget and related
motions, and advising the Debtors regarding continued maintenance
of budget throughout the process and the creation of
budget-to-actual variance reports;
d. reviewing and signing off on all disbursements;
e. preparing financial documentation as required by the U.S.
trustee and working with the trustee to comply with Bankruptcy Code
requirements;
f. providing testimony, as needed, in support of various
motions;
g. preparing schedules of assets and liabilities and
statements of financial affairs;
h. preparing monthly operating reports;
i. attending and assisting with committee formation meetings;
j. interfacing with any official committees formed by the U.S.
trustee;
k. providing appropriate reporting and diligence to any
official committees;
l. assisting in the development of a plan of reorganization
and disclosure statement, as needed;
m. assisting in the preparation of financial projections for
the disclosure statement, as needed;
n. preparing liquidation analysis and feasibility or viability
analysis in connection with the plan, as needed;
o. facilitating claims reconciliation process and conducting
claims pool analysis;
p. assisting with distribution to creditors under the plan, if
appropriate; and
q. providing the Debtor with other appropriate general
restructuring advice.
Emerald Capital Advisors will be paid at these rates:
Managing Partners $600 per hour
Managing Directors $500 to $500 per hour
Vice Presidents $400 to $450 per hour
Associates $300 to $350 per hour
Analysts $200 to $250 per hour
The firm received from the Debtor a retainer of $50,000.
John Madden, a managing partner at Emerald Capital Advisors,
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:
John P. Madden
Emerald Capital Advisors
150 East 52nd Street, 15th Floor
New York, NY 10022
Telephone: (646) 968-4094
Facsimile: (212) 731-0307
Email: info@emeraldcapitaladvisors.com
About Times Square JV
Times Square JV, LLC owns a building located at 1605 Broadway, New
York, in central Times Square. The premises is a total of 840,000
square feet and consists, among other things, of certain hotel
space on the 15th through 46th floors, currently branded as the
Crowne Plaza Times Square Manhattan Hotel; 196,300 square feet of
commercial office space, portions of which are currently leased to
three third-party tenants; 17,800 square feet of ground floor
retail space; certain billboard spaces; and a parking garage.
Times Square JV leases the premises to affiliate CPTS Hotel Lessee,
LLC. Affiliates 1601 Broadway Owner, LLC and 1601 Broadway
Holdings, LLC directly or indirectly own or lease certain real
property underlying the premises.
Vornado is the ultimate indirect majority parent of non-debtor CPTS
Mezz Borrower, which is the sole legal and beneficial owner of 100%
of the issued and outstanding limited liability company membership
interests in CPTS.
On Dec. 28, 2022, Times Square JV, CPTS Hotel Lessee, 1601 Broadway
Owner and 1601 Broadway Holdings filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y.
Lead Case No. 22-11715) on Dec. 27, 2022. In the petition filed by
Richard Shinder, as president, treasurer and sole director, Times
Square JV reported between $100 million and $500 million in both
assets and liabilities.
Judge John P. Mastando III oversees the cases.
The Debtors tapped John R. Ashmead, Esq., at Seward & Kissel, LLP
as legal counsel and Emerald Capital Advisors Corp. as financial
advisor.
TMS INTERNATIONAL: Moody's Rates New $450MM Term Loan B 'B1'
------------------------------------------------------------
Moody's Investors Service, assigned a B1 rating to TMS
International Corp.'s proposed 7-year $450 million term loan B. The
company plans to use the proceeds from the new term loan along with
borrowings of about $33 million on an upsized $175 million
asset-based revolver to refinance its existing $479 million term
loan B due 2024 and to pay associated fees. TMS International's B2
corporate family rating, B2-PD Probability of Default Rating, B1
rating on its existing senior secured term loan B, Caa1 rating on
its senior unsecured notes and its stable outlook remain
unchanged.
Assignments:
Issuer: TMS International Corp.
Senior Secured Term Loan B, Assigned B1 (LGD3)
RATINGS RATIONALE
TMS International's B2 corporate family rating is supported by its
strong market position, customer and regional diversity, downside
protection afforded by its long-term contracts when volumes decline
and its highly-variable cost structure. It also reflects the high
margins generated by its Industrial and Environmental Services
Group and its good liquidity. TMS International's credit profile is
constrained by its somewhat weak interest coverage, reliance on the
highly cyclical steel sector, an inability to fully pass-through
rising costs and its inconsistent free cash generation due to
potential dividend payments and periodic capital spending at new
mill sites in advance of cash flow generation from those sites. It
also reflects its recent more aggressive financial policies
including the debt funded acquisitions of Stein, LLC in December
2020 and Kent Environmental in January 2021 for a combined purchase
price of $166.5 million and the payment of a shareholder dividend
in each of the past two years.
Weakness in both of TMS International's business segments in 2022
along with materially higher inflationary cost pressures and
limited cost pass throughs and led to its adjusted EBITDA declining
to about $167 million versus $195 million in 2021. Moody's
anticipate its operating performance will moderately improve in
2023 with adjusted EBITDA in the range of $175 million - $180
million even if steel and scrap demand and prices remain relatively
stable as it benefits from the lagged benefit of cost pass throughs
as cost pressures stabilize in some categories and decline in
others. It may also benefit from additional negotiated price
increases aided by the recent bankruptcy filing by Phoenix
Services, which should make the company less of a competitive
threat and potentially lead to other new business opportunities.
Nevertheless, Phoenix is likely to become a bigger competitive
threat longer term if it emerges from bankruptcy with a
substantially lower debt level.
TMS' credit metrics weakened along with its operating performance
in 2022 and were pressured by the payment of a dividend for the
second consecutive year. Moody's believe the company paid down some
debt with free cash flow in Q4 supported by working capital
reductions, but that its leverage ratio (Debt/EBITDA) rose to about
5.3x in December 2022 from 4.6x in December 2021, while its
interest coverage (EBIT/Interest) declined to around 1.2x from
1.5x. These metrics are somewhat weak for the B2 rating, but the
company is analyzed under Moody's steel industry methodology which
calculates the interest coverage ratio utilizing EBIT instead of
EBITDA. This assumes that most steel producers will spend an amount
equal to their depreciation and amortization on capital
expenditures in this capital-intensive sector, which is typically
not the case for TMS as it spends an amount that is closer to its
depreciation expense excluding growth investments. Therefore, its
interest coverage is more accurately measured using
EBITA-to-Interest, which Moody's estimate was about 1.6x for the
LTM period ended December 2022.
TMS' interest coverage ratio is likely to remain weak in 2023 as
the interest costs on its floating rate term loan debt rise and it
refinances the term loan at a higher interest rate. However, its
other credit metrics could strengthen if its operating performance
improves and the company utilizes its free cash flow to pay down
debt, but additional acquisitions and shareholder dividends remain
a risk. If the company's operating performance fails to improve, it
continues to use free cash flow to fund dividends rather than debt
repayments, or it does not extend the maturity of its term loan
before it becomes current in August 2023 (August 2024 maturity)
then an outlook change or a downgrade could be considered.
TMS has a good liquidity profile with $18.4 million of unrestricted
cash and net availability of $121.7 million on its $150 million
asset-based revolving credit facility as of September 30, 2022,
which had no borrowings outstanding and $28.3 million in letters of
credit. The eligible accounts receivable and inventory that
comprise the collateral under the ABL facility supported a gross
borrowing base of $177.5 million. The company plans to upsize the
revolver to $175 million as part of this refinancing.
Moody's expects TMS to generate positive free cash flow over the
next 12 to 18 months. However, its free cash generation depends on
the extent to which the company is awarded new contracts, whether
business conditions require investments in working capital and if
it chooses to pay further shareholder dividends. TMS consumed about
$67 million of cash during the LTM period ended September 2022
mostly due to the shareholder dividend paid in July 2022 and
working capital investments of about $16 million. The company would
have produced positive free cash flow in the prior four calendar
years excluding the dividend payment in 2021, which indicates the
company's ability to consistently produce free cash flow if it
chooses not to pay a dividend.
The stable ratings outlook reflects the expectation that TMS
International's operating performance will moderately improve in
2023 and its credit metrics will remain commensurate with the
rating.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
TMS International's ratings are not likely to experience upward
pressure in the near term. However, the ratings would be considered
for an upgrade if the company achieves substantially improved
operating results and credit metrics. This would include
maintaining a leverage ratio (Debt/EBITDA) below 4.5x and cash flow
from operations less dividends above 13% of outstanding debt.
The ratings would be considered for a downgrade if the company
experiences a material reduction in borrowing availability or
liquidity, or if its leverage ratio is sustained above 5.5x or cash
flow from operations less dividends below 10% of outstanding debt.
TMS International Corp., headquartered in Pittsburgh, PA., provides
on-site steel mill services such as scrap management and
preparation, semi-finished and finished material handling, metal
recovery, slag handling, processing and sales, surface
conditioning, raw materials procurement and logistics and raw
material cost optimization. Through its Kent Environmental
subsidiary, it also provides transportation and recycling, hydro
excavation, vacuum and container management services for the
industrial, chemical and petrochemical sectors. TMS International
generated $2.35 billion in revenues for the twelve months ended
September 30, 2022. TMS has been owned by The Pritzker Organization
since late 2013.
The principal methodology used in this rating was Steel published
in November 2021.
TRAYLOR CHATEAU: Trustee Taps Realty Exchange as Realtor
--------------------------------------------------------
David Sosne, Esq., Chapter 11 trustee for Traylor Chateau, LLC,
received approval from the U.S. Bankruptcy Court for the Eastern
District of Missouri to hire Realty Exchange.
The Debtor requires the services of a realtor in connection with
the sale of its real properties located at 5832 and 5841 Cabanne
Ave., in St. Louis, Mo.
Realty Exchange will receive a commission equal to 5 percent of the
total sale. Commission will be reduced to 2.5 percent if Child &
Family Empowerment Center purchases the property.
Constantine Benos, agent with Realty Exchange, disclosed in a court
filing that he does not represent interests adverse to those of the
Debtor or any other party.
The realtor can be reached through:
Constantine (Dino) Benos
Realty Exchange
2203 S. Big Bend Blvd, Suite 100
St. Louis, MO 63117
Phone: 314-504-9043
Office: (314) 647-2220
Email: cbenos@stlmultifamily.com
About Traylor Chateau
Traylor Chateau, LLC is a Missouri limited liability company that
owns a 30-unit apartment building in Saint Louis City, Mo. The
company is a single asset real estate (as defined in 11 U.S.C.
Section 101(51B)).
Traylor Chateau sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Mo. Case No. 22-43815) on Dec. 6,
2022, with up to $10 million in assets and up to $1 million in
liabilities. Rena T. Traylor, member of Traylor Chateau, signed the
petition.
Judge Kathy A. Surratt-States oversees the case.
Frank R. Ledbetter, Esq., at Ledbetter Law Firm, LLC represents the
Debtor as counsel.
TREES CORP: TCM Tactical Has 9.1% Stake as of Feb. 13
-----------------------------------------------------
In a Schedule 13G filed with the Securities and Exchange
Commission, TCM Tactical Opportunities Fund II LP disclosed that as
of February 13, 2023, Tactical Opportunities Fund and its
affiliated entities may be deemed to beneficially own approximately
9.1% of the outstanding shares of Common Stock of Trees Corp.
Tactical Opportunities Fund said it beneficially owned 10,318,458
shares of Common Stock of Trees Corp., consisting of:
(a) 4,912,349 shares of Common Stock issuable upon the
exercise of certain warrants of Trees Corp. held by it, and
(b) 5,406,108 shares of Common Stock issuable upon the partial
conversion of certain Senior Secured Promissory Notes of Trees
Corp., held by it, which will become freely convertible on March
15, 2023.
Capital Advisors, as the investment manager of Tactical
Opportunities Fund, may be deemed to beneficially own the shares of
Common Stock beneficially owned by Tactical Opportunities Fund.
As of February 13, 2023, Context|TCM Series beneficially owned
1,632,800 shares of Common Stock, which includes 1,632,800 shares
of Common Stock issuable upon the exercise of Warrants held by it.
Context|TCM LLC, as the investment manager of Context|TCM Series,
may be deemed to beneficially own the shares of Common Stock
beneficially owned by Context|TCM Series.
Each of Douglas M. Troob and Peter J. Troob, as the Managing
Members of Capital Advisors and Context|TCM LLC, may be deemed to
beneficially own the 11,951,258 shares of Common Stock beneficially
owned by each of Capital Advisors and Context|TCM LLC.
The percentage is based on 130,615,352 shares of Common Stock
outstanding.
A full-text copy of the regulatory filing is available for free at
https://tinyurl.com/jppnt37v
About Trees Corp
Headquartered in Denver, Colorado, Trees Corporation (formerly
known as General Cannabis Corp) -- provides services and products
to the regulated cannabis industry. The Company is a trusted
partner to the cultivation, production and retail sides of the
cannabis business.
As of September 30, 2022, the Company had $27.8 million in total
assets, $19.4 million in total liabilities, and $8.3 million in
total stockholders' equity.
Salt Lake City, Utah-based Haynie & Company, the Company's auditor
since 2021, issued a "going concern" qualification in its report
dated March 25, 2022, citing that the Company has suffered
recurring losses from operations and has negative working capital
that raise substantial doubt about its ability to continue as a
going concern.
In its September 2022 quarterly report, the Company acknowledged
that it has incurred recurring losses and negative cash flows from
operations since inception and has primarily funded operations with
proceeds from the issuance of convertible debt. "We expect our
operating losses to continue into the foreseeable future as we
continue to execute our acquisition and growth strategy. As a
result, we have concluded that there is substantial doubt about our
ability to continue as a going concern," the Company said.
TUESDAY MORNING: Has $51.5MM in DIP Loans from Cantor Fitzgerald
----------------------------------------------------------------
Tuesday Morning Corp. disclosed in its Form 8-K Report filed with
the Securities and Exchange Commission that on February 16, 2023,
in accordance with the terms of an interim order issued by the U.S.
Bankruptcy Court for the Northern District of Texas, the Debtors
entered into a Senior Secured Super Priority Debtor-in-Possession
Term Loan among the Debtors, Cantor Fitzgerald Securities, as
administrative agent, for itself and for and on behalf of the other
lenders party thereto. Pursuant to the terms of the DIP Term Loan
Agreement, the lenders are providing the Debtors with a term loan
facility composed of:
* $15 million in initial term loans, which became available
immediately following the entry of the Interim DIP Order,
* $26.5 million in incremental term loans, which are subject to
approval of a final order by the Bankruptcy Court, and
* $10 million of delayed draw term loans, which are subject to
approval of a final order by the Bankruptcy Court.
The DIP Term Loan Agreement also provides that, subject to approval
of a final order by the Bankruptcy Court:
* each lender under the Credit Agreement, dated December 31,
2020, and as previously amended, among certain of the Debtors, the
Pre-Petition Term Loan Lenders party thereto, and Alter Domus (US),
LLC, as administrative agent and collateral agent,
* the holder of the junior secured convertible note -- FILO C
Convertible Note -- issued by the Company may elect to provide a
pro rata portion of the DIP Facility.
For each $1.61 million of commitments under the DIP Term Loan
Agreement made by each Pre-Petition Term Loan Lender or
Pre-Petition FILO C Lender, as the case may be, such lender would
agree to forgive $1 million of loans under the Pre-Petition Term
Loan Credit Agreement or Pre-Petition FILO C Convertible Note, as
applicable, and would receive $1 million of roll-up loans under the
DIP Term Loan Agreement. The maximum amount of Roll-Up Loans would
be approximately $24.47 million with respect to the Pre-Petition
Term Loan Lenders and approximately $7.74 million with respect to
the Pre-Petition FILO C Lender. The Roll-Up Loans are subject to
approval of a final order by the Bankruptcy Court.
Under the terms of the Interim DIP Order, proceeds of the Interim
DIP Term Loans may be used to fund the Chapter 11 Cases, make
certain other payments as provided in the DIP Term Loan Agreement,
and to fund working capital of the Company.
The DIP Term Loan Agreement includes:
* conditions precedent;
* representations and warranties;
* affirmative and negative covenants;
* events of default customary for financings of this type and
size;
The DIP Term Loan Agreement requires the Debtors to among other
things:
* comply with the terms of approved budgets and a maximum
loan-to-value ratio,
* maintain certain minimum levels of eligible inventory,
* use commercially reasonable efforts to renegotiate the leases
for the Company's distribution centers,
* receive approval of a plan of reorganization or sale of
substantially all assets of the Debtors through the Chapter 11
process by agreed upon deadlines
* weekly cash sweeps and mandatory prepayment requirements from
net proceeds received from casualty events, equity issuances or
indebtedness or other extraordinary proceeds.
New money DIP Term Loans under the DIP Term Loan Agreement will
bear interest at a per annum rate of 12.75%. Following the
occurrence of an event of default under the DIP Term Loan
Agreement, the interest rate on outstanding borrowings would
increase by 5.00%.
The commitments of the lenders under the DIP Term Loan Agreement
will terminate and outstanding borrowings under the DIP Term Loans
will mature at the earliest of:
* August 15, 2023;
* the consummation of a sale of all or substantially all of the
assets of the Debtors pursuant to Section 363 or Section 1129 of
the Bankruptcy Code;
* the effective date of any plan of reorganization;
* such other date on which the outstanding borrowings become due
and payable, whether by acceleration or otherwise;
* the date on which the administrative agent delivers written
notice to the Debtors of its election to accelerate the outstanding
borrowings as a result of an event of default.
Tuesday Morning also disclosed that on January 3, 2023, the Company
filed a Form 25 with the Securities and Exchange Commission in
order to delist its common stock from The Nasdaq Capital Market. On
January 3, trading of common stock on Nasdaq was suspended, and the
common stock has been delisted. The deregistration of the common
stock under Section 12(b) of the Securities Exchange Act of 1934
will be effective 90 days, or such shorter period as the SEC may
determine, after filing of the Form 25. Upon deregistration of the
common stock under Section 12(b) of the Exchange Act, the common
stock will be registered under Section 12(g) of the Exchange Act.
A full-text copy of the regulatory filing is available for free at
https://tinyurl.com/2fn3tjb7
About Tuesday Morning
Dallas, Texas-based Tuesday Morning Corporation is an off-price
retailer specializing in products for the home, including upscale
home textiles, home furnishings, housewares, gourmet food, toys and
seasonal decor, at prices generally below those found in boutique,
specialty and department stores, catalogs and on-line retailers.
Tuesday Morning and several affiliates filed for Chapter 11
bankruptcy protection (Bankr. N.D. Tex. Lead Case No. 23-90001) on
Feb. 14, 2023. The Debtors said both assets and liabilities, on a
consolidated basis, are between $100 million and $500 million. The
Hon. Edward L. Morris presides over the case.
This is the Company's second Chapter 11 filing in about two years.
Tuesday Morning, then with around 700 stores in 40 states, filed
Chapter 11 protection on May 27, 2020 (Bankr. N.D. Tex. Lead Case
No. 20-31476). The Hon. Harlin Dewayne Hale was the case judge.
In the 2021 case, the Debtors tapped Haynes and Boone, LLP as
general bankruptcy counsel; Alixpartners LLP as financial advisor;
Stifel, Nicolaus & Co., Inc. as investment banker; A&G Realty
Partners, LLC as real estate consultant; and Great American Group,
LLC as liquidation consultant. Epiq Corporate Restructuring, LLC
was the claims and noticing agent. The official committee of
unsecured creditors tapped Munsch Hardt Kopf & Harr, P.C., as
counsel.
Tuesday Morning on Jan. 4, 2021, successfully completed the
reorganization and emerged from Chapter 11 bankruptcy, supported by
a $110 million asset-backed lending facility provided by J.P.
Morgan, Wells Fargo, and Bank of America. The Company exited
Chapter 11 with 490 of its best performing stores.
In the 2023 case, lawyers at Munsch Hardt Kopf & Harr, P.C., serve
as counsel to the Debtors. The Debtors tapped Piper Sandler as
investment banker; and Stretto, Inc., as claims and noticing
agent.
UNIVERSITY OF ARTS: Fitch Cuts Rating on $47MM 2017 Bonds to 'BB-'
------------------------------------------------------------------
Fitch Ratings has downgraded the rating on approximately $47
million outstanding par (FYE 2022) of Philadelphia Authority for
Industrial Development, PA series 2017 bonds issued on behalf of
The University of the Arts (UArts) to 'BB-' from 'BB'.
In addition, Fitch has downgraded UArts' Long-Term Issuer Default
Rating (IDR) to 'BB-' from 'BB'.
The Rating Outlook remains Negative.
Entity/Debt Rating Prior
----------- ------ -----
The University
of the Arts (PA) LT IDR BB- Downgrade BB
The University
of the Arts (PA)
/General
Revenues/1 LT LT BB- Downgrade BB
SECURITY
The series 2017 bonds are secured by a pledge of UArts'
unrestricted revenues and a debt-service reserve that is
cash-funded to half of maximum annual debt service (MADS). The
series 2017 bonds are also secured by mortgages on three university
properties appraised in 2017 at $36 million in the center of
Philadelphia, PA.
Unrestricted university revenues and the series 2017 mortgages are
pledged on a parity basis to a bank providing a $7 million line of
credit to UArts. There was no outstanding amount on the line of
credit as of June 30, 2022.
ANALYTICAL CONCLUSION
UArts' 'BB-' IDR and bond rating reflect the university's
programmatic, operational and financial vulnerabilities, stemming
from its highly specialized arts focus, a small (1,260 FTEs in fall
2022) student base experiencing an accelerated decline, a somewhat
inflexible cost structure with high capital needs, and modest
available resources against outstanding debt. The ratings also
incorporate a strong and consistent philanthropic base that has
both supported operating expenses and the growth of a solid
endowment over time, combined with a history of sufficient cash
flow margins and debt service coverage.
The Negative Outlook considers Fitch's expectation that UArts'
weakening trends in student enrollment and associated revenues will
persist, and that these revenue pressures may only be partially
counterbalanced by expense cuts and additional non-student
generated revenues. The Negative Outlook also considers the
longer-term financial impacts of these trends in a Fitch-modeled
forward-looking scenario analysis that also incorporates potential
financial market stress.
KEY RATING DRIVERS
Revenue Defensibility: 'bb'
Pressured Demand in Niche Market; Solid Donor and Endowment
Support
Fall 2022 freshmen matriculants at UArts was the smallest entering
class in recent history, declining over 30% from fall 2021, and was
less than half of pre-pandemic annual entrants. With similar
patterns among transfer matriculants, total fall 2022 enrollment at
UArts was 1,260 FTEs, shrinking by 18% from fall 2021's 1,528 FTEs,
and is likely to continue declining for several years as the
lingering effect of the smaller incoming cohort replaces larger
graduating classes.
Fitch expects UArts' revenue base to remain challenged for years to
come. Student-generated revenues typically comprise over 70% of
UArts' operating income. In addition, UArts' faces headwinds from a
highly competitive and narrow arts-focused academic niche, and its
location and draw mostly from the demographically weak Northeast
and Mid-Atlantic regions.
The steep drop in freshmen entrants is attributed largely to recent
changes in recruiting and financial aid strategies. Management has
engaged a new enrollment and financial aid consultant and aims to
restore incoming freshmen to previous levels with enhanced
strategies. In FY 2023, the expected drop in revenues from student
sources will be supplemented with a one-time gain from the
previously-planned sale of a small, outdated residence hall.
Management also expects increased revenues from reconfigured
student housing in an existing residence hall that will expand
capacity and accommodate higher-demand unit styles.
Supporting some stability in overall revenues, UArts benefits from
strong and consistent private grants, and annual operating
distributions from a sizeable endowment. Together, these sources
typically make up almost 30% of UArts' unrestricted operating
income. The university recently announced that $67 million was
raised in a campaign headed by UArts' outgoing President; a search
is underway for his replacement following his planned June 2023
retirement. UArts' endowment spending policy of 5% of a rolling
12-quarter market value average is considered sustainable by
Fitch.
Operating Risk: 'bbb'
Limited Cash Flow; High but Manageable Capital Needs
UArts' has maintained relatively thin Fitch-calculated cash flow
margins of between 5%-10% in recent years, with stronger
performance in fiscal 2021 due in part to significant expense
management and non-recurring federal stimulus funds. Expense
management and external funding for capital projects will be
critical to the institution's ability to maintain adequate cash
flows, particularly given UArts' enrollment volatility, the
associated vulnerability of student-generated revenues, and the
discontinuance of non-recurring pandemic aid funds.
UArts has demonstrated willingness to close low-enrollment programs
and Fitch expects further evaluation of programs and expenses will
occur. Nearly all UArts' roughly 750 employees including part-time
faculty and staff have recently voted to join the Philadelphia
chapter of the American Federation of Teachers. As the collective
bargaining contracts are still under negotiation, it is unclear
whether the unionization will impede upon UArts' ability to make
necessary expense adjustments in line with decreasing student
revenues and the discontinuation of pandemic aid.
UArts' buildings include several historic, grand buildings in the
heart of Philadelphia, PA's arts and entertainment district. This
contributes to the university's high age of plant and capital
needs. The university is committed to funding all capital projects
with in-hand donations and external sources, with the exception of
some Pennsylvania state capital support that is provided on a
reimbursement basis. UArts has a strong capital fundraising record
and reports raising $4 million already towards a future $14 million
project.
Financial Profile: 'bb'
Thin Balance Sheet Cushion
UArts' 'bb' financial profile assessment reflects the university's
relatively high leverage in the context of its focused program
offerings, declining student and revenue base, and moderate
flexibility to make adjustments to generate stronger cash flows.
UArts' available funds (AF: cash and investment less permanently
restricted net assets) of less than $20 million stood at a modest
42% of total Fitch-adjusted debt (including lease obligations) of
$51 million at FYE 2022. UArts has no additional debt plans.
The university reports compliance with its 1.1x debt service
coverage ratio covenant from the 2017 bonds during fiscal 2022, and
projects compliance for fiscal 2023.
Fitch's financial profile assessment for UArts is also based on the
results of a forward-looking, Fitch-modeled scenario that considers
the effects of possible financial market stress and future
assumptions of the university's revenues, expenses, debt and capex.
Absent significant changes in the trajectory of UArts' revenue
and/or expense profile over the next several years, this scenario
indicates that significant deterioration in leverage ratios is
possible, and consistent with negative rating pressure.
Asymmetric Additional Risk Considerations
Fitch views the reliance of non-recurring revenue sources, namely
federal stimulus and non-core asset sales to balance operations as
an asymmetric risk-additive consideration for Operating Risk.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Continued demand pressure evidenced by enrollment declines or
heightened discount levels, which further suppresses student
revenues beyond fiscal 2023;
-- Fitch-calculated cash flow margins that consistently fall
below 7% or to levels that result in annual debt service
coverage close to the 1.1x covenant threshold;
-- Deterioration in leverage and/or liquidity ratios showing a
trend of AF-to-adjusted debt persistently below 30%, and/or
AF-to-operating expenses below 20%.
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- A trend of increasing enrollment including improvement in
entering class sizes could support a Stable Outlook;
-- Improvement in recurring revenue growth and operating
performance, resulting in Fitch-calculated cash flow
margins at levels consistently around 10% or that
generate debt service coverage comfortably above the
1.1x covenant threshold.
CREDIT PROFILE
The University of the Arts is a private, co-educational university
established in 1876. The university occupies several buildings
within a five-block radius centered in the historic arts district
of downtown Philadelphia, PA. UArts offers undergraduate and
graduate programs through six schools: Design, Art, Film, Dance,
Theater, and Music. UArts' student body of 1,260 as of fall 2022 is
over 90% undergraduate. UArts has a primarily regional draw, with
roughly two-thirds of students coming from Pennsylvania and the
neighboring state of New Jersey, and the remaining one-third
primarily from the region. UArts currently maintains 600-beds of
university-owned housing and has no residency requirement, and most
students live off-campus.
UArts maintains institution-wide accreditation from Middle States
Commission on Higher Education, which most recently affirmed UArts'
accreditation in 2019. The university is governed by a 25-member
Board of Trustees with broad business and arts experience. UArts'
President since 2016, David Yager, announced his retirement
effective June 30, 2023. A search is underway for a new President.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
VA TECHNOSOLUTIONS: Wins Final OK on Cash Collateral Access
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Florida,
Miami Division, authorized VA Technosolutins and Services, LLC to
use the cash collateral of the U.S. Small Business Administration
on a final basis in accordance with the budget, with a 10%
variance.
As adequate protection for the use of cash collateral and for any
diminution in value of the Lender's prepetition collateral as
described in the loan documents between the Debtor and the Lender,
the Lender is granted a valid, perfected lien upon, and security
interest in, to the extent and in the order of priority of any
valid lien pre-petition, all cash generated post-petition by the
Property.
These events constitute an "Event of Default":
a. If the Debtor breaches any term or condition of the Order
or any of the Lender's loan documents, other than defaults existing
as of the Petition Date;
b. If the case is converted to a case under Chapter 7 of the
Bankruptcy Code;
c. If the case is dismissed; or
d. If any violation or breach of any provision of the Order
occurs.
The post-petition liens and security interests granted to the
Lender will be valid and perfected post-petition, to the extent and
priority of the prepetition lien(s), without the need for execution
or filing of any further documents or instruments otherwise
required to be filed or be executed or filed under non-bankruptcy
law.
A copy of the Court's order is available at https://bit.ly/3lPAgtR
from PacerMonitor.com.
About VA Technosolutions and Services
VA Technosolutions and Services is a merchant wholesaler of
professional and commercial Equipment and supplies.
VA Technosolutions and Services, LLC filed its voluntary petition
for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D.
Fla. Case No. 23-10161) on Jan. 10, 2023. The petition was signed
by Victor M. Arias as managing member and president. At the time of
filing, the Debtor estimated $500,000 to $1 million in assets and
$1 million to $10 million in liabilities.
Judge Robert A. Mark presides over the case.
Tarek K. Kiem, Esq., at KIEM LAW, PLLC represents the Debtor as
counsel.
VECTRA CO: S&P Alters Outlook to Negative, Affirms 'B-' ICR
-----------------------------------------------------------
S&P Global Ratings revised the outlook to negative from stable and
affirmed its 'B-' issuer credit rating on Vectra Co. At the same
time, S&P affirmed our 'B-' issue-level rating on the company's
first-lien debt and 'CCC' issue-level rating on its second-lien
debt. The '3' and '6' recovery ratings are unchanged.
The negative outlook reflects S&P's expectation that Vectra's S&P
Global Ratings-adjusted debt to EBITDA will be above 10x in 2022
and 2023, though we don't expect this will constrain its
liquidity.
S&P said, "We expect Vectra's revenue and EBITDA will be lower than
our previous forecast due to internal and external factors. During
the early part of 2022, the company struggled to implement its new
enterprise resource planning software, resulting in
higher-than-expected costs and weaker EBITDA margins. Externally,
supply chain issues continue to disrupt its operations. Vectra's
revenues are lower than we expected due to delays in filling orders
because its suppliers have failed to deliver parts on time on
multiple occasions. To combat these issues, the company has
increased its inventory, though we expect the elevated working
capital usage related to this inventory build to reverse in 2023."
Vectra has a significant backlog due to robust defense spending.
The demand for Vectra's products has been strong due, in part, to
the Russia/Ukraine conflict, which we expect will support increased
volumes for its weapons, such as the Stinger, Javelin, and Patriot
missiles. Therefore, Vectra's backlog is the largest it's been
since the pandemic, which will likely enable it to increase its
revenue in 2023 and beyond.
S&P said, "We expect Vectra to maintain sufficient liquidity.While
covenants limit its revolver availability, Vectra has a solid cash
balance relative to its very modest liquidity needs. We expect
positive cash from operations over the next 12 months and note the
company has a significant cushion in the event of prolonged
earnings challenges or rising interest rates.
"The negative outlook reflects our expectation that Vectra's
leverage will remain above 10x through 2023 as supply chain
challenges continue to delay the realization of its earnings. We
expect debt to EBITDA of over 10x in 2022 and 2023, though we
anticipate free cash flow will likely turn positive in 2023."
S&P could lower its rating on Vectra if negative free cash flow
reduces its liquidity, its leverage remains such that its capital
structure is unsustainable, or the company is unable to refinance
its capital structure before debt turns current. This could occur
if:
-- Continued supply chain disruptions delay revenue growth and
limit free cash flow;
-- The company's capital spending or working capital needs
increase without a significant improvement in revenue; or
-- Interest rates rise faster than expected.
S&P could revise the outlook to stable if the company's EBITDA
improves such that we expect its debt to EBITDA will decline below
8x, it generates positive free cash flow, and is able to extend
upcoming debt maturities through refinancing. This could occur if:
-- Vectra's earnings increase more than we expect;
-- Cash flow improves due to working capital improvements; and
-- The company uses excess cash to repay debt and refrains from
large, debt-financed acquisitions that could increase leverage.
ESG credit indicators: E-2, S-2, G-3
S&P said, "Governance is a moderately negative consideration in our
credit rating analysis of Vectra, as is the case for most rated
entities owned by private-equity sponsors. We believe the company's
highly leveraged financial risk profile reflects corporate
decision-making that prioritizes the interests of the controlling
owners. This also reflects private-equity owners' generally finite
holding periods and focus on maximizing shareholder returns."
VITAL PHARMACEUTICALS: Gets More Time for Bankruptcy Plan
---------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Florida
extended the time Vital Pharmaceuticals, Inc. and its affiliates
can keep exclusive control of their Chapter 11 cases, giving them
until May 8 to file a bankruptcy plan and until July 10 to solicit
votes on that plan.
The companies originally requested to extend the exclusive filing
period to June 7 and the solicitation period to Aug. 8, saying the
120-day extension is necessary in light of the anticipated closing
of the sale of their assets on May 17.
The bankruptcy court, however, shortened the exclusive periods
after the companies' largest creditors, Monster Energy Company and
Orange Bang, Inc., expressed doubts over the success of the
transaction. Both expressed concern creditors' interest will be
adversely impacted if the transaction fails.
Vital Pharmaceuticals and its affiliates have implemented a
marketing process for the transaction that will allow interested
buyers to submit bids in the form of a sale under Section 363 of
the Bankruptcy Code or in the form of a plan of reorganization.
If they sell their assets pursuant to Section 363, the companies
will proceed to file a plan of liquidation following the
consummation of the sale on May 17.
About Vital Pharmaceuticals Inc.
Since 1993, Florida-based Vital Pharmaceuticals, Inc., doing
business as Bang Energy and as VPX Sports, has developed
performance beverages, supplements, and workout products to fuel
high-energy lifestyles. VPX Sports is the maker of Bang energy
drinks, among other consumer products.
Vital Pharmaceuticals, Inc., along with certain of its domestic
subsidiaries and affiliates, filed voluntary petitions for
protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D.
Fla. Lead Case No. 22-17842) on Oct. 10, 2022.
VPX estimated $500 million to $1 billion in assets and liabilities
as of the bankruptcy filing.
The Hon. Scott M. Grossman is the case judge.
The Debtors tapped Latham & Watkins, LLP as general bankruptcy
counsel; Berger Singerman, LLP as local counsel; Haynes and Boone,
LLP and Faulkner ADR Law, PLLC as special counsels; Huron
Consulting Group, Inc. as CTO services provider; and Rothschild &
Co US, Inc. as investment banker. Stretto, Inc. is the notice,
claims and solicitation agent.
The U.S. Trustee for Region 21 appointed an official committee of
unsecured creditors on Nov. 1, 2022. The committee tapped
Lowenstein Sandler, LLP as general bankruptcy counsel; Sequor Law,
P.A. as local counsel; and Lincoln Partners Advisors, LLC as
financial advisor.
VOLEL PROFESSIONAL: Seeks Approval to Hire A+ Accounting and Tax
----------------------------------------------------------------
Volel Professional Pharmacist Association, P.A. seeks approval from
the U.S. Bankruptcy Court for the Middle District of Florida to
employ A+ Accounting and Tax.
The Debtor requires an accountant to:
a. prepare reports required by the court, including monthly
operating reports and financial documents required for the Debtor's
plan of reorganization;
b. perform normal accounting and other accounting services as
required by the Debtor; and
c. prepare and file tax returns and conduct tax research as
necessary.
A+ Accounting will be paid at these rates:
Accountant $175 per hour
Accounting Staff $50 to 100 per hour
The firm received from the Debtor a retainer of $3,000.
Akshay Dave, CPA, a partner at A+ Accounting, disclosed in a court
filing that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Akshay Dave, CPA
A+ Accounting and Tax
4002 McLane Dr.
Tampa, FL 33610
Tel: (813) 381-3809
Email: Office4002@gmail.com
About Volel Professional Pharmacist Association
Volel Professional Pharmacist Association, P.A. operates a pharmacy
in Winter Haven, Fla.
Volel sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. M.D. Fla. Case No. 22-05123) on Dec. 29, 2022, with
$504,659 in total assets and $5,945,305 in total liabilities. Volel
President Paul Volel, Jr. signed the petition.
Judge Catherine Peek McEwen oversees the case.
The Debtor tapped Buddy D. Ford, P.A. and A+ Accounting and Tax as
legal counsel and accountant, respectively.
VOYAGER DIGITAL: Seeks to Hire Paul Hastings as Special Counsel
---------------------------------------------------------------
Voyager Digital Holdings, Inc. and its affiliates seek approval
from the U.S. Bankruptcy Court for the Southern District of New
York to employ Paul Hastings, LLP as special regulatory and
conflicts counsel.
The Debtors require a special counsel to:
a. give advice regarding financial services regulatory matters
that have arisen and may arise in the Debtors' Chapter 11 cases,
including but not limited to compliance, litigation, discovery, and
related federal and state judicial and administrative proceedings;
b. give advice on issues relating to financial services
regulatory law and compliance applicable to a debtor-in-possession
under the Bankruptcy Code;
c. assist in objecting to and litigating any potential
bankruptcy claims by regulatory entities;
d. file and prosecute a claim in the Chapter 11 cases of Celsius
Network, LLC and its affiliates, and opposing the late filed claim
of Celsius Network in the Debtors' bankruptcy cases; and
e. other necessary legal services.
The firm will be paid at these rates:
Partners $1,400 to $2,075 per hour
Counsel $1,400 to $2,000 per hour
Associates $800 to $1,320 per hour
Paraprofessionals $275 to $600 per hour
In addition, the firm will receive reimbursement for out-of-pocket
expenses incurred.
During the 90-day period before the petition date, the firm
received from the Debtors a total of $1,414,377 for services
rendered and expenses incurred. It also received from the Debtors
an advance payment retainer in the amount of $361,176.
Chris Daniel, Esq., a partner at Paul Hastings, disclosed in a
court filing that his firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
In accordance with Appendix B-Guidelines for reviewing fee
applications filed by attorneys in larger Chapter 11 cases, Paul
Hastings disclosed the following:
Question: Did you agree to any variations from, or alternatives
to, your standard or customary billing arrangements for this
engagement?
Response: Yes. At the time of the firm's engagement in July
2021, as a courtesy to the Debtors and based on circumstances at
that time, the firm reduced its hourly rates by 20 percent.
Question: Do any of the professionals included in this
engagement vary their rate based on the geographic location of the
bankruptcy case?
Response: No.
Question: If you represented the client in the 12 months
prepetition, disclose your billing rates and material financial
terms for the prepetition engagement, including any adjustments
during the 12 months prepetition. If your billing rates and
material financial terms have changed postpetition, explain the
difference and the reasons for the difference.
Response: The firm's billing arrangements are:
Partners $1,400 to $2,075 per hour
Counsel $1,400 to $2,000 per hour
Associates $800 to $1,320 per hour
Paraprofessionals $275 to $600 per hour
Question: Has your client approved your prospective budget and
staffing plan, and, if so, for what budget period?
Response: The Debtors and Paul Hastings expect to work together
to develop a budget and staffing plan for the period from entry of
an order approving the firm's retention through the effective date
of any Chapter 11 plan.
Paul Hastings can be reached at:
Chris Daniel, Esq.
Paul Hastings, LLP
1170 Peachtree Street, N.E. Suite 100
Atlanta, GA 30309
Telephone: (404) 815-2100
Facsimile: (404) 815-2424
Email: chrisdaniel@paulhastings.com
About Voyager Digital Holdings
Based in Toronto, Canada, Voyager Digital Holdings Inc. --
https://www.investvoyager.com/ -- runs a cryptocurrency platform.
Voyager claims to offer a secure way to trade over 100 different
crypto assets using its easy-to-use mobile application. Through its
subsidiary Coinify ApS, Voyager provides crypto payment solutions
for both consumers and merchants around the globe.
Voyager Digital Holdings Inc. and two affiliates sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead
Case No. 22-10943) on July 5, 2022. In the petition filed by
Stephen Ehrlich, chief executive officer, the Debtors estimated
assets and liabilities between $1 billion and $10 billion.
Judge Michael E. Wiles oversees the cases.
The Debtors tapped Kirkland & Ellis, LLP as general bankruptcy
counsel; Berkeley Research Group, LLC as financial advisor; Moelis
& Company as investment banker; Consello Group as strategic
financial advisor; Deloitte Tax, LLP as tax services provider; and
Deloitte & Touche, LLP as accounting advisor. Stretto, Inc. is the
claims agent.
On July 19, 2022, the U.S. Trustee for Region 2 appointed an
official committee of unsecured creditors in these Chapter 11
cases. The committee tapped McDermott Will & Emery, LLP as
bankruptcy counsel; FTI Consulting, Inc. as financial advisor;
Cassels Brock & Blackwell, LLP as Canadian counsel; and Epiq
Corporate Restructuring, LLC as noticing and information agent.
The committee also tapped the services of Harney Westwood &
Riegels, LP in connection with Three Arrows Capital Ltd.'s
liquidation proceedings in British Virgin Islands.
On July 6, 2022, the Debtors filed a joint Chapter 11 plan of
reorganization.
* * *
Following an auction process, the Debtors in September 2022
selected the bid submitted by FTX US' West Realm Shires Inc. as the
winning bid for the assets. But after a series of events, FTX
collapsed in November 2022, before the sale could be completed.
After reopening bidding, Voyager Digital selected the offer from
U.S. exchange BAM Trading Services Inc. (doing business as
"Binance.US") as the highest and best bid for its assets.
Binance's bid is valued at $1.022 billion.
[^] Large Companies with Insolvent Balance Sheet
------------------------------------------------
Total
Share- Total
Total Holders' Working
Assets Equity Capital
Company Ticker ($MM) ($MM) ($MM)
------- ------ ------ -------- -------
7GC & CO HOLD-A VII US 231.4 (10.3) (2.2)
7GC & CO HOLDING VIIAU US 231.4 (10.3) (2.2)
ABSOLUTE SOFTWRE ABST US 533.6 (8.8) (62.8)
ABSOLUTE SOFTWRE OU1 GR 533.6 (8.8) (62.8)
ABSOLUTE SOFTWRE ABST CN 533.6 (8.8) (62.8)
ABSOLUTE SOFTWRE ABT2EUR EU 533.6 (8.8) (62.8)
ABSOLUTE SOFTWRE OU1 GZ 533.6 (8.8) (62.8)
ACCELERATE DIAGN AXDX* MM 75.8 (9.8) 56.7
AEMETIS INC AMTX US 198.9 (184.9) (159.0)
AIR CANADA AC CN 29,754.0 (1,931.0) 1,190.0
AIR CANADA ADH2 GR 29,754.0 (1,931.0) 1,190.0
AIR CANADA ACEUR EU 29,754.0 (1,931.0) 1,190.0
AIR CANADA ADH2 TH 29,754.0 (1,931.0) 1,190.0
AIR CANADA ACDVF US 29,754.0 (1,931.0) 1,190.0
AIR CANADA ADH2 QT 29,754.0 (1,931.0) 1,190.0
AIR CANADA ACEUR EZ 29,754.0 (1,931.0) 1,190.0
AIR CANADA ADH2 GZ 29,754.0 (1,931.0) 1,190.0
ALNYLAM PHAR-BDR A1LN34 BZ 3,535.3 (67.6) 1,918.1
ALNYLAM PHARMACE ALNY US 3,535.3 (67.6) 1,918.1
ALNYLAM PHARMACE DUL GR 3,535.3 (67.6) 1,918.1
ALNYLAM PHARMACE DUL QT 3,535.3 (67.6) 1,918.1
ALNYLAM PHARMACE ALNYEUR EU 3,535.3 (67.6) 1,918.1
ALNYLAM PHARMACE DUL TH 3,535.3 (67.6) 1,918.1
ALNYLAM PHARMACE ALNY* MM 3,535.3 (67.6) 1,918.1
ALNYLAM PHARMACE DUL GZ 3,535.3 (67.6) 1,918.1
ALNYLAM PHARMACE ALNYEUR EZ 3,535.3 (67.6) 1,918.1
ALTICE USA INC-A ATUS US 33,282.6 (339.1) (1,469.1)
ALTICE USA INC-A 15PA GR 33,282.6 (339.1) (1,469.1)
ALTICE USA INC-A 15PA TH 33,282.6 (339.1) (1,469.1)
ALTICE USA INC-A ATUSEUR EU 33,282.6 (339.1) (1,469.1)
ALTICE USA INC-A 15PA GZ 33,282.6 (339.1) (1,469.1)
ALTICE USA INC-A ATUS* MM 33,282.6 (339.1) (1,469.1)
ALTICE USA INC-A ATUS-RM RM 33,282.6 (339.1) (1,469.1)
ALTIRA GP-CEDEAR MOC AR 36,954.0 (3,923.0) (1,396.0)
ALTIRA GP-CEDEAR MOD AR 36,954.0 (3,923.0) (1,396.0)
ALTIRA GP-CEDEAR MO AR 36,954.0 (3,923.0) (1,396.0)
ALTRIA GROUP INC PHM7 GR 36,954.0 (3,923.0) (1,396.0)
ALTRIA GROUP INC MO* MM 36,954.0 (3,923.0) (1,396.0)
ALTRIA GROUP INC MO US 36,954.0 (3,923.0) (1,396.0)
ALTRIA GROUP INC MO SW 36,954.0 (3,923.0) (1,396.0)
ALTRIA GROUP INC MOEUR EU 36,954.0 (3,923.0) (1,396.0)
ALTRIA GROUP INC MO TE 36,954.0 (3,923.0) (1,396.0)
ALTRIA GROUP INC PHM7 TH 36,954.0 (3,923.0) (1,396.0)
ALTRIA GROUP INC MO CI 36,954.0 (3,923.0) (1,396.0)
ALTRIA GROUP INC PHM7 QT 36,954.0 (3,923.0) (1,396.0)
ALTRIA GROUP INC MOUSD SW 36,954.0 (3,923.0) (1,396.0)
ALTRIA GROUP INC PHM7 GZ 36,954.0 (3,923.0) (1,396.0)
ALTRIA GROUP INC 0R31 LI 36,954.0 (3,923.0) (1,396.0)
ALTRIA GROUP INC ALTR AV 36,954.0 (3,923.0) (1,396.0)
ALTRIA GROUP INC MOEUR EZ 36,954.0 (3,923.0) (1,396.0)
ALTRIA GROUP INC MOCL CI 36,954.0 (3,923.0) (1,396.0)
ALTRIA GROUP INC MO-RM RM 36,954.0 (3,923.0) (1,396.0)
ALTRIA GROUP INC PHM7 BU 36,954.0 (3,923.0) (1,396.0)
ALTRIA GROUP-BDR MOOO34 BZ 36,954.0 (3,923.0) (1,396.0)
AMC ENTERTAINMEN AMC US 9,206.1 (2,579.0) (717.4)
AMC ENTERTAINMEN AH9 GR 9,206.1 (2,579.0) (717.4)
AMC ENTERTAINMEN AMC4EUR EU 9,206.1 (2,579.0) (717.4)
AMC ENTERTAINMEN AH9 TH 9,206.1 (2,579.0) (717.4)
AMC ENTERTAINMEN AH9 QT 9,206.1 (2,579.0) (717.4)
AMC ENTERTAINMEN AMC* MM 9,206.1 (2,579.0) (717.4)
AMC ENTERTAINMEN AH9 GZ 9,206.1 (2,579.0) (717.4)
AMC ENTERTAINMEN AMC-RM RM 9,206.1 (2,579.0) (717.4)
AMC ENTERTAINMEN A2MC34 BZ 9,206.1 (2,579.0) (717.4)
AMC ENTERTAINMEN APE* MM 9,206.1 (2,579.0) (717.4)
AMC ENTERTAINMEN AH9 BU 9,206.1 (2,579.0) (717.4)
AMC ENTERTAINMEN AMCE AV 9,206.1 (2,579.0) (717.4)
AMERICAN AIR-BDR AALL34 BZ 64,716.0 (5,799.0) (6,227.0)
AMERICAN AIRLINE AAL US 64,716.0 (5,799.0) (6,227.0)
AMERICAN AIRLINE A1G GR 64,716.0 (5,799.0) (6,227.0)
AMERICAN AIRLINE AAL* MM 64,716.0 (5,799.0) (6,227.0)
AMERICAN AIRLINE A1G TH 64,716.0 (5,799.0) (6,227.0)
AMERICAN AIRLINE A1G QT 64,716.0 (5,799.0) (6,227.0)
AMERICAN AIRLINE A1G GZ 64,716.0 (5,799.0) (6,227.0)
AMERICAN AIRLINE AAL11EUR EU 64,716.0 (5,799.0) (6,227.0)
AMERICAN AIRLINE AAL AV 64,716.0 (5,799.0) (6,227.0)
AMERICAN AIRLINE AAL TE 64,716.0 (5,799.0) (6,227.0)
AMERICAN AIRLINE A1G SW 64,716.0 (5,799.0) (6,227.0)
AMERICAN AIRLINE 0HE6 LI 64,716.0 (5,799.0) (6,227.0)
AMERICAN AIRLINE AAL11EUR EZ 64,716.0 (5,799.0) (6,227.0)
AMERICAN AIRLINE AAL-RM RM 64,716.0 (5,799.0) (6,227.0)
AMERICAN AIRLINE AAL_KZ KZ 64,716.0 (5,799.0) (6,227.0)
AMPLIFY ENERGY C AMPY US 458.2 (35.3) (48.9)
AMPLIFY ENERGY C 2OQ GR 458.2 (35.3) (48.9)
AMPLIFY ENERGY C MPO2EUR EU 458.2 (35.3) (48.9)
AMPLIFY ENERGY C 2OQ TH 458.2 (35.3) (48.9)
AMPLIFY ENERGY C 2OQ GZ 458.2 (35.3) (48.9)
AMPLIFY ENERGY C 2OQ QT 458.2 (35.3) (48.9)
AMYRIS INC AMRS* MM 754.1 (404.8) (36.8)
AMYRIS INC A2MR34 BZ 754.1 (404.8) (36.8)
AON PLC-BDR A1ON34 BZ 32,704.0 (429.0) 417.0
AON PLC-CLASS A AON US 32,704.0 (429.0) 417.0
AON PLC-CLASS A 4VK GR 32,704.0 (429.0) 417.0
AON PLC-CLASS A 4VK QT 32,704.0 (429.0) 417.0
AON PLC-CLASS A 4VK TH 32,704.0 (429.0) 417.0
AON PLC-CLASS A AON1EUR EU 32,704.0 (429.0) 417.0
AON PLC-CLASS A AONN MM 32,704.0 (429.0) 417.0
AON PLC-CLASS A 4VK GZ 32,704.0 (429.0) 417.0
ARENA GROUP HOLD AREN US 167.6 (31.2) (43.0)
ASHFORD HOSPITAL AHD GR 3,971.7 (68.8) -
ASHFORD HOSPITAL AHT US 3,971.7 (68.8) -
ASHFORD HOSPITAL AHT1EUR EU 3,971.7 (68.8) -
ASHFORD HOSPITAL AHD TH 3,971.7 (68.8) -
ATLAS TECHNICAL ATCX US 528.8 (125.1) 98.7
AUTOZONE INC AZO US 15,315.9 (3,837.9) (2,075.9)
AUTOZONE INC AZ5 TH 15,315.9 (3,837.9) (2,075.9)
AUTOZONE INC AZ5 GR 15,315.9 (3,837.9) (2,075.9)
AUTOZONE INC AZOEUR EU 15,315.9 (3,837.9) (2,075.9)
AUTOZONE INC AZ5 QT 15,315.9 (3,837.9) (2,075.9)
AUTOZONE INC AZO AV 15,315.9 (3,837.9) (2,075.9)
AUTOZONE INC AZ5 TE 15,315.9 (3,837.9) (2,075.9)
AUTOZONE INC AZO* MM 15,315.9 (3,837.9) (2,075.9)
AUTOZONE INC AZOEUR EZ 15,315.9 (3,837.9) (2,075.9)
AUTOZONE INC AZ5 GZ 15,315.9 (3,837.9) (2,075.9)
AUTOZONE INC AZO-RM RM 15,315.9 (3,837.9) (2,075.9)
AUTOZONE INC-BDR AZOI34 BZ 15,315.9 (3,837.9) (2,075.9)
AVID TECHNOLOGY AVID US 237.5 (141.4) (22.4)
AVID TECHNOLOGY AVD GR 237.5 (141.4) (22.4)
AVID TECHNOLOGY AVD TH 237.5 (141.4) (22.4)
AVID TECHNOLOGY AVD GZ 237.5 (141.4) (22.4)
AVIS BUD-CEDEAR CAR AR 15,961.0 (507.0) (770.0)
AVIS BUDGET GROU CUCA GR 15,961.0 (507.0) (770.0)
AVIS BUDGET GROU CAR US 15,961.0 (507.0) (770.0)
AVIS BUDGET GROU CUCA QT 15,961.0 (507.0) (770.0)
AVIS BUDGET GROU CAR2EUR EU 15,961.0 (507.0) (770.0)
AVIS BUDGET GROU CAR* MM 15,961.0 (507.0) (770.0)
AVIS BUDGET GROU CAR2EUR EZ 15,961.0 (507.0) (770.0)
AVIS BUDGET GROU CUCA TH 15,961.0 (507.0) (770.0)
AVIS BUDGET GROU CUCA GZ 15,961.0 (507.0) (770.0)
BABCOCK & WILCOX BW US 881.6 (17.1) 179.1
BABCOCK & WILCOX UBW1 GR 881.6 (17.1) 179.1
BABCOCK & WILCOX BWEUR EU 881.6 (17.1) 179.1
BATH & BODY WORK LTD0 GR 5,133.0 (2,608.0) 496.0
BATH & BODY WORK LTD0 TH 5,133.0 (2,608.0) 496.0
BATH & BODY WORK BBWI US 5,133.0 (2,608.0) 496.0
BATH & BODY WORK LBEUR EU 5,133.0 (2,608.0) 496.0
BATH & BODY WORK BBWI* MM 5,133.0 (2,608.0) 496.0
BATH & BODY WORK LTD0 QT 5,133.0 (2,608.0) 496.0
BATH & BODY WORK BBWI AV 5,133.0 (2,608.0) 496.0
BATH & BODY WORK LBEUR EZ 5,133.0 (2,608.0) 496.0
BATH & BODY WORK LTD0 GZ 5,133.0 (2,608.0) 496.0
BATH & BODY WORK BBWI-RM RM 5,133.0 (2,608.0) 496.0
BATTERY FUTURE A BFAC/U US 354.9 350.4 0.2
BATTERY FUTURE-A BFAC US 354.9 350.4 0.2
BED BATH &BEYOND BBBY* MM 4,401.4 (798.6) (694.1)
BED BATH &BEYOND BBBY-RM RM 4,401.4 (798.6) (694.1)
BELLRING BRANDS BRBR US 735.0 (370.3) 304.9
BELLRING BRANDS D51 TH 735.0 (370.3) 304.9
BELLRING BRANDS BRBR2EUR EU 735.0 (370.3) 304.9
BELLRING BRANDS D51 GR 735.0 (370.3) 304.9
BELLRING BRANDS D51 QT 735.0 (370.3) 304.9
BEYOND MEAT INC BYND US 1,141.3 (142.0) 605.3
BEYOND MEAT INC 0Q3 GR 1,141.3 (142.0) 605.3
BEYOND MEAT INC 0Q3 GZ 1,141.3 (142.0) 605.3
BEYOND MEAT INC BYNDEUR EU 1,141.3 (142.0) 605.3
BEYOND MEAT INC 0Q3 TH 1,141.3 (142.0) 605.3
BEYOND MEAT INC 0Q3 QT 1,141.3 (142.0) 605.3
BEYOND MEAT INC BYND AV 1,141.3 (142.0) 605.3
BEYOND MEAT INC 0Q3 SW 1,141.3 (142.0) 605.3
BEYOND MEAT INC 0A20 LI 1,141.3 (142.0) 605.3
BEYOND MEAT INC BYNDEUR EZ 1,141.3 (142.0) 605.3
BEYOND MEAT INC 0Q3 TE 1,141.3 (142.0) 605.3
BEYOND MEAT INC BYND* MM 1,141.3 (142.0) 605.3
BEYOND MEAT INC B2YN34 BZ 1,141.3 (142.0) 605.3
BEYOND MEAT INC BYND-RM RM 1,141.3 (142.0) 605.3
BIOCRYST PHARM BO1 TH 558.6 (242.7) 427.4
BIOCRYST PHARM BCRX US 558.6 (242.7) 427.4
BIOCRYST PHARM BO1 GR 558.6 (242.7) 427.4
BIOCRYST PHARM BO1 QT 558.6 (242.7) 427.4
BIOCRYST PHARM BCRXEUR EU 558.6 (242.7) 427.4
BIOCRYST PHARM BCRX* MM 558.6 (242.7) 427.4
BIOCRYST PHARM BCRXEUR EZ 558.6 (242.7) 427.4
BIOTE CORP-A BTMD US 109.6 (109.9) 78.4
BLACK MOUNTAIN A BMAC/U US 283.4 (9.5) 0.0
BLACK MOUNTAIN-A BMAC US 283.4 (9.5) 0.0
BLUE BIRD CORP BLBD US 351.6 (9.2) (26.4)
BLUE BIRD CORP 4RB GR 351.6 (9.2) (26.4)
BLUE BIRD CORP 4RB GZ 351.6 (9.2) (26.4)
BLUE BIRD CORP BLBDEUR EU 351.6 (9.2) (26.4)
BLUE BIRD CORP BLBDEUR EZ 351.6 (9.2) (26.4)
BLUE BIRD CORP 4RB TH 351.6 (9.2) (26.4)
BLUE BIRD CORP 4RB QT 351.6 (9.2) (26.4)
BOEING CO-BDR BOEI34 BZ 137,100 (15,848) 19,471.0
BOEING CO-CED BA AR 137,100 (15,848) 19,471.0
BOEING CO-CED BAD AR 137,100 (15,848) 19,471.0
BOEING CO/THE BA EU 137,100 (15,848) 19,471.0
BOEING CO/THE BCO GR 137,100 (15,848) 19,471.0
BOEING CO/THE BAEUR EU 137,100 (15,848) 19,471.0
BOEING CO/THE BA TE 137,100 (15,848) 19,471.0
BOEING CO/THE BA* MM 137,100 (15,848) 19,471.0
BOEING CO/THE BA SW 137,100 (15,848) 19,471.0
BOEING CO/THE BOEI BB 137,100 (15,848) 19,471.0
BOEING CO/THE BA US 137,100 (15,848) 19,471.0
BOEING CO/THE BCO TH 137,100 (15,848) 19,471.0
BOEING CO/THE BA PE 137,100 (15,848) 19,471.0
BOEING CO/THE BOE LN 137,100 (15,848) 19,471.0
BOEING CO/THE BA CI 137,100 (15,848) 19,471.0
BOEING CO/THE BCO QT 137,100 (15,848) 19,471.0
BOEING CO/THE BAUSD SW 137,100 (15,848) 19,471.0
BOEING CO/THE BCO GZ 137,100 (15,848) 19,471.0
BOEING CO/THE BA AV 137,100 (15,848) 19,471.0
BOEING CO/THE BA-RM RM 137,100 (15,848) 19,471.0
BOEING CO/THE BAEUR EZ 137,100 (15,848) 19,471.0
BOEING CO/THE BA EZ 137,100 (15,848) 19,471.0
BOEING CO/THE BACL CI 137,100 (15,848) 19,471.0
BOEING CO/THE BA_KZ KZ 137,100 (15,848) 19,471.0
BOMBARDIER INC-A BBD/A CN 12,324.0 (2,762.0) 148.0
BOMBARDIER INC-A BDRAF US 12,324.0 (2,762.0) 148.0
BOMBARDIER INC-A BBD GR 12,324.0 (2,762.0) 148.0
BOMBARDIER INC-A BBD/AEUR EU 12,324.0 (2,762.0) 148.0
BOMBARDIER INC-A BBD GZ 12,324.0 (2,762.0) 148.0
BOMBARDIER INC-B BBD/B CN 12,324.0 (2,762.0) 148.0
BOMBARDIER INC-B BBDC GR 12,324.0 (2,762.0) 148.0
BOMBARDIER INC-B BDRBF US 12,324.0 (2,762.0) 148.0
BOMBARDIER INC-B BBDC TH 12,324.0 (2,762.0) 148.0
BOMBARDIER INC-B BBDBN MM 12,324.0 (2,762.0) 148.0
BOMBARDIER INC-B BBD/BEUR EU 12,324.0 (2,762.0) 148.0
BOMBARDIER INC-B BBDC GZ 12,324.0 (2,762.0) 148.0
BOMBARDIER INC-B BBD/BEUR EZ 12,324.0 (2,762.0) 148.0
BOMBARDIER INC-B BBDC QT 12,324.0 (2,762.0) 148.0
BOX INC- CLASS A BOX US 1,056.4 (78.2) 59.1
BOX INC- CLASS A 3BX GR 1,056.4 (78.2) 59.1
BOX INC- CLASS A 3BX TH 1,056.4 (78.2) 59.1
BOX INC- CLASS A 3BX QT 1,056.4 (78.2) 59.1
BOX INC- CLASS A BOXEUR EU 1,056.4 (78.2) 59.1
BOX INC- CLASS A BOXEUR EZ 1,056.4 (78.2) 59.1
BOX INC- CLASS A 3BX GZ 1,056.4 (78.2) 59.1
BOX INC- CLASS A BOX-RM RM 1,056.4 (78.2) 59.1
BRIDGEBIO PHARMA BBIO US 728.7 (1,130.4) 523.0
BRIDGEBIO PHARMA 2CL GR 728.7 (1,130.4) 523.0
BRIDGEBIO PHARMA 2CL GZ 728.7 (1,130.4) 523.0
BRIDGEBIO PHARMA BBIOEUR EU 728.7 (1,130.4) 523.0
BRIDGEBIO PHARMA 2CL TH 728.7 (1,130.4) 523.0
BRIGHTSPHERE INV BSIG US 518.7 (21.6) -
BRIGHTSPHERE INV 2B9 GR 518.7 (21.6) -
BRIGHTSPHERE INV BSIGEUR EU 518.7 (21.6) -
BRIGHTSPHERE INV 2B9 GZ 518.7 (21.6) -
BRINKER INTL EAT US 2,519.6 (267.5) (336.3)
BRINKER INTL BKJ GR 2,519.6 (267.5) (336.3)
BRINKER INTL BKJ QT 2,519.6 (267.5) (336.3)
BRINKER INTL EAT2EUR EU 2,519.6 (267.5) (336.3)
BRINKER INTL EAT2EUR EZ 2,519.6 (267.5) (336.3)
BRINKER INTL BKJ TH 2,519.6 (267.5) (336.3)
BROOKFIELD INF-A BIPC CN 10,178.0 (361.0) (3,762.0)
BROOKFIELD INF-A BIPC US 10,178.0 (361.0) (3,762.0)
CALUMET SPECIALT CLMT US 2,568.7 (265.4) (536.5)
CARDINAL HEA BDR C1AH34 BZ 44,482.0 (2,212.0) 1,384.0
CARDINAL HEALTH CAH US 44,482.0 (2,212.0) 1,384.0
CARDINAL HEALTH CLH GR 44,482.0 (2,212.0) 1,384.0
CARDINAL HEALTH CLH TH 44,482.0 (2,212.0) 1,384.0
CARDINAL HEALTH CLH QT 44,482.0 (2,212.0) 1,384.0
CARDINAL HEALTH CAHEUR EU 44,482.0 (2,212.0) 1,384.0
CARDINAL HEALTH CLH GZ 44,482.0 (2,212.0) 1,384.0
CARDINAL HEALTH CAH* MM 44,482.0 (2,212.0) 1,384.0
CARDINAL HEALTH CAHEUR EZ 44,482.0 (2,212.0) 1,384.0
CARDINAL HEALTH CAH-RM RM 44,482.0 (2,212.0) 1,384.0
CARDINAL-CEDEAR CAH AR 44,482.0 (2,212.0) 1,384.0
CARDINAL-CEDEAR CAHC AR 44,482.0 (2,212.0) 1,384.0
CARDINAL-CEDEAR CAHD AR 44,482.0 (2,212.0) 1,384.0
CEDAR FAIR LP FUN US 2,235.9 (591.6) (153.2)
CENGAGE LEARNING CNGO US 2,600.8 (298.1) (64.5)
CENTRUS ENERGY-A LEU US 618.2 (100.3) 111.0
CENTRUS ENERGY-A 4CU TH 618.2 (100.3) 111.0
CENTRUS ENERGY-A 4CU GR 618.2 (100.3) 111.0
CENTRUS ENERGY-A LEUEUR EU 618.2 (100.3) 111.0
CENTRUS ENERGY-A 4CU GZ 618.2 (100.3) 111.0
CENTRUS ENERGY-A 4CU QT 618.2 (100.3) 111.0
CHENIERE ENERGY LNG US 43,642.0 (4,330.0) (2,169.0)
CHENIERE ENERGY CHQ1 GR 43,642.0 (4,330.0) (2,169.0)
CHENIERE ENERGY CQP US 20,500.0 (3,884.0) (1,210.0)
CHENIERE ENERGY CHQ1 TH 43,642.0 (4,330.0) (2,169.0)
CHENIERE ENERGY CHQ1 QT 43,642.0 (4,330.0) (2,169.0)
CHENIERE ENERGY LNG2EUR EU 43,642.0 (4,330.0) (2,169.0)
CHENIERE ENERGY LNG* MM 43,642.0 (4,330.0) (2,169.0)
CHENIERE ENERGY CHQ1 SW 43,642.0 (4,330.0) (2,169.0)
CHENIERE ENERGY LNG2EUR EZ 43,642.0 (4,330.0) (2,169.0)
CHENIERE ENERGY CHQ1 GZ 43,642.0 (4,330.0) (2,169.0)
CINEPLEX INC CGX CN 2,150.5 (211.8) (310.3)
CINEPLEX INC CX0 GR 2,150.5 (211.8) (310.3)
CINEPLEX INC CPXGF US 2,150.5 (211.8) (310.3)
CINEPLEX INC CX0 TH 2,150.5 (211.8) (310.3)
CINEPLEX INC CGXEUR EU 2,150.5 (211.8) (310.3)
CINEPLEX INC CGXN MM 2,150.5 (211.8) (310.3)
CINEPLEX INC CX0 GZ 2,150.5 (211.8) (310.3)
COGENT COMMUNICA CCOI US 1,020.7 (491.8) 291.9
COGENT COMMUNICA OGM1 GR 1,020.7 (491.8) 291.9
COGENT COMMUNICA CCOIEUR EU 1,020.7 (491.8) 291.9
COGENT COMMUNICA CCOI* MM 1,020.7 (491.8) 291.9
COHERUS BIOSCIEN CHRS US 550.9 (97.1) 277.0
COHERUS BIOSCIEN 8C5 GR 550.9 (97.1) 277.0
COHERUS BIOSCIEN 8C5 TH 550.9 (97.1) 277.0
COHERUS BIOSCIEN CHRSEUR EU 550.9 (97.1) 277.0
COHERUS BIOSCIEN 8C5 QT 550.9 (97.1) 277.0
COHERUS BIOSCIEN CHRSEUR EZ 550.9 (97.1) 277.0
COHERUS BIOSCIEN 8C5 GZ 550.9 (97.1) 277.0
COMMUNITY HEALTH CYH US 14,669.0 (734.0) 896.0
COMMUNITY HEALTH CG5 GR 14,669.0 (734.0) 896.0
COMMUNITY HEALTH CG5 TH 14,669.0 (734.0) 896.0
COMMUNITY HEALTH CG5 QT 14,669.0 (734.0) 896.0
COMMUNITY HEALTH CYH1EUR EU 14,669.0 (734.0) 896.0
COMMUNITY HEALTH CYH1EUR EZ 14,669.0 (734.0) 896.0
COMMUNITY HEALTH CG5 GZ 14,669.0 (734.0) 896.0
COMPOSECURE INC CMPO US 169.8 (324.8) 36.2
CONSENSUS CLOUD CCSI US 627.4 (289.7) 43.7
CONTANGO ORE INC CTGO US 23.3 (0.8) 8.4
CPI CARD GROUP I PMTS US 305.0 (94.3) 112.7
CPI CARD GROUP I CPB1 GR 305.0 (94.3) 112.7
CPI CARD GROUP I PMTSEUR EU 305.0 (94.3) 112.7
CTI BIOPHARMA CO CEPS QT 123.5 (16.8) 77.6
CTI BIOPHARMA CO CTIC US 123.5 (16.8) 77.6
CTI BIOPHARMA CO CEPS GR 123.5 (16.8) 77.6
CTI BIOPHARMA CO CTIC1EUR EZ 123.5 (16.8) 77.6
CTI BIOPHARMA CO CTIC1EUR EU 123.5 (16.8) 77.6
CTI BIOPHARMA CO CEPS TH 123.5 (16.8) 77.6
CYTOKINETICS INC CYTK US 1,076.0 (16.0) 807.8
CYTOKINETICS INC KK3A GR 1,076.0 (16.0) 807.8
CYTOKINETICS INC KK3A QT 1,076.0 (16.0) 807.8
CYTOKINETICS INC CYTKEUR EU 1,076.0 (16.0) 807.8
CYTOKINETICS INC KK3A TH 1,076.0 (16.0) 807.8
CYTOKINETICS INC CYTKEUR EZ 1,076.0 (16.0) 807.8
DEFENCE THERAPEU DTC CN 0.3 (0.9) (1.0)
DEFENCE THERAPEU DTCFF US 0.3 (0.9) (1.0)
DELEK LOGISTICS DKL US 1,638.2 (114.3) (192.7)
DELL TECHN-C DELL US 85,172.0 (3,368.0) (13,220)
DELL TECHN-C 12DA TH 85,172.0 (3,368.0) (13,220)
DELL TECHN-C 12DA GR 85,172.0 (3,368.0) (13,220)
DELL TECHN-C 12DA GZ 85,172.0 (3,368.0) (13,220)
DELL TECHN-C DELL1EUR EU 85,172.0 (3,368.0) (13,220)
DELL TECHN-C DELLC* MM 85,172.0 (3,368.0) (13,220)
DELL TECHN-C 12DA QT 85,172.0 (3,368.0) (13,220)
DELL TECHN-C DELL AV 85,172.0 (3,368.0) (13,220)
DELL TECHN-C DELL1EUR EZ 85,172.0 (3,368.0) (13,220)
DELL TECHN-C DELL-RM RM 85,172.0 (3,368.0) (13,220)
DELL TECHN-C-BDR D1EL34 BZ 85,172.0 (3,368.0) (13,220)
DENNY'S CORP DE8 GR 498.3 (37.1) (43.3)
DENNY'S CORP DENN US 498.3 (37.1) (43.3)
DENNY'S CORP DENNEUR EU 498.3 (37.1) (43.3)
DENNY'S CORP DE8 TH 498.3 (37.1) (43.3)
DENNY'S CORP DE8 GZ 498.3 (37.1) (43.3)
DIEBOLD NIXDORF DBD SW 3,065.0 (1,371.1) 166.0
DINE BRANDS GLOB DIN US 1,972.0 (301.6) 126.7
DINE BRANDS GLOB IHP GR 1,972.0 (301.6) 126.7
DINE BRANDS GLOB IHP TH 1,972.0 (301.6) 126.7
DINE BRANDS GLOB IHP GZ 1,972.0 (301.6) 126.7
DIVERSIFIED ENER DEC LN - - -
DIVERSIFIED ENER DGOCGBX EU - - -
DIVERSIFIED ENER DECL PO - - -
DIVERSIFIED ENER DECL L3 - - -
DIVERSIFIED ENER DECL B3 - - -
DIVERSIFIED ENER DECL TQ - - -
DIVERSIFIED ENER DGOCGBX EP - - -
DIVERSIFIED ENER DGOCGBX EZ - - -
DIVERSIFIED ENER DECL IX - - -
DIVERSIFIED ENER DECL EB - - -
DIVERSIFIED ENER DECL QX - - -
DIVERSIFIED ENER DECL BQ - - -
DIVERSIFIED ENER DECL S1 - - -
DOMINO'S P - BDR D2PZ34 BZ 1,646.4 (4,316.5) 247.7
DOMINO'S PIZZA EZV TH 1,646.4 (4,316.5) 247.7
DOMINO'S PIZZA EZV GR 1,646.4 (4,316.5) 247.7
DOMINO'S PIZZA DPZ US 1,646.4 (4,316.5) 247.7
DOMINO'S PIZZA EZV QT 1,646.4 (4,316.5) 247.7
DOMINO'S PIZZA DPZEUR EU 1,646.4 (4,316.5) 247.7
DOMINO'S PIZZA DPZ AV 1,646.4 (4,316.5) 247.7
DOMINO'S PIZZA DPZ* MM 1,646.4 (4,316.5) 247.7
DOMINO'S PIZZA EZV GZ 1,646.4 (4,316.5) 247.7
DOMINO'S PIZZA DPZEUR EZ 1,646.4 (4,316.5) 247.7
DOMINO'S PIZZA DPZ-RM RM 1,646.4 (4,316.5) 247.7
DOMO INC- CL B DOMO US 217.3 (146.1) (78.7)
DOMO INC- CL B 1ON GR 217.3 (146.1) (78.7)
DOMO INC- CL B 1ON GZ 217.3 (146.1) (78.7)
DOMO INC- CL B DOMOEUR EU 217.3 (146.1) (78.7)
DOMO INC- CL B 1ON TH 217.3 (146.1) (78.7)
DROPBOX INC-A DBX US 3,110.1 (309.4) 293.3
DROPBOX INC-A 1Q5 GR 3,110.1 (309.4) 293.3
DROPBOX INC-A 1Q5 SW 3,110.1 (309.4) 293.3
DROPBOX INC-A 1Q5 TH 3,110.1 (309.4) 293.3
DROPBOX INC-A 1Q5 QT 3,110.1 (309.4) 293.3
DROPBOX INC-A DBXEUR EU 3,110.1 (309.4) 293.3
DROPBOX INC-A DBX AV 3,110.1 (309.4) 293.3
DROPBOX INC-A DBX* MM 3,110.1 (309.4) 293.3
DROPBOX INC-A DBXEUR EZ 3,110.1 (309.4) 293.3
DROPBOX INC-A 1Q5 GZ 3,110.1 (309.4) 293.3
DROPBOX INC-A DBX-RM RM 3,110.1 (309.4) 293.3
EARGO INC EAR US 116.6 (36.3) (47.5)
EMBECTA CORP EMBC US 1,196.9 (836.1) 391.4
EMBECTA CORP EMBC* MM 1,196.9 (836.1) 391.4
EMBECTA CORP JX7 GR 1,196.9 (836.1) 391.4
EMBECTA CORP JX7 QT 1,196.9 (836.1) 391.4
EMBECTA CORP EMBC1EUR EZ 1,196.9 (836.1) 391.4
EMBECTA CORP EMBC1EUR EU 1,196.9 (836.1) 391.4
EMBECTA CORP JX7 GZ 1,196.9 (836.1) 391.4
EMBECTA CORP JX7 TH 1,196.9 (836.1) 391.4
ESPERION THERAPE ESPR US 312.8 (294.1) 179.4
ESPERION THERAPE 0ET GR 312.8 (294.1) 179.4
ESPERION THERAPE 0ET TH 312.8 (294.1) 179.4
ESPERION THERAPE ESPREUR EU 312.8 (294.1) 179.4
ESPERION THERAPE 0ET QT 312.8 (294.1) 179.4
ESPERION THERAPE 0ET GZ 312.8 (294.1) 179.4
ETSY INC ETSY US 2,450.3 (606.2) 854.9
ETSY INC 3E2 GR 2,450.3 (606.2) 854.9
ETSY INC 3E2 TH 2,450.3 (606.2) 854.9
ETSY INC 3E2 QT 2,450.3 (606.2) 854.9
ETSY INC 2E2 GZ 2,450.3 (606.2) 854.9
ETSY INC ETSY AV 2,450.3 (606.2) 854.9
ETSY INC ETSYEUR EZ 2,450.3 (606.2) 854.9
ETSY INC ETSY* MM 2,450.3 (606.2) 854.9
ETSY INC ETSY-RM RM 2,450.3 (606.2) 854.9
ETSY INC - BDR E2TS34 BZ 2,450.3 (606.2) 854.9
ETSY INC - CEDEA ETSY AR 2,450.3 (606.2) 854.9
FAIR ISAAC - BDR F2IC34 BZ 1,458.7 (802.1) 128.8
FAIR ISAAC CORP FRI GR 1,458.7 (802.1) 128.8
FAIR ISAAC CORP FICO US 1,458.7 (802.1) 128.8
FAIR ISAAC CORP FICOEUR EU 1,458.7 (802.1) 128.8
FAIR ISAAC CORP FRI QT 1,458.7 (802.1) 128.8
FAIR ISAAC CORP FICOEUR EZ 1,458.7 (802.1) 128.8
FAIR ISAAC CORP FICO1* MM 1,458.7 (802.1) 128.8
FAIR ISAAC CORP FRI GZ 1,458.7 (802.1) 128.8
FERRELLGAS PAR-B FGPRB US 1,537.6 (305.7) 116.2
FERRELLGAS-LP FGPR US 1,537.6 (305.7) 116.2
FORTINET INC FTNT US 6,228.0 (281.6) 732.0
FORTINET INC FO8 TH 6,228.0 (281.6) 732.0
FORTINET INC FO8 GR 6,228.0 (281.6) 732.0
FORTINET INC FTNTEUR EU 6,228.0 (281.6) 732.0
FORTINET INC FO8 QT 6,228.0 (281.6) 732.0
FORTINET INC FO8 SW 6,228.0 (281.6) 732.0
FORTINET INC FTNT* MM 6,228.0 (281.6) 732.0
FORTINET INC FTNTEUR EZ 6,228.0 (281.6) 732.0
FORTINET INC FO8 GZ 6,228.0 (281.6) 732.0
FORTINET INC FTNT-RM RM 6,228.0 (281.6) 732.0
FORTINET INC-BDR F1TN34 BZ 6,228.0 (281.6) 732.0
GCM GROSVENOR-A GCMG US 549.1 (47.0) 158.0
GENELUX CORP GNLX US 10.2 (36.5) (21.3)
GODADDY INC -BDR G2DD34 BZ 6,973.5 (329.3) (877.2)
GODADDY INC-A GDDY US 6,973.5 (329.3) (877.2)
GODADDY INC-A 38D GR 6,973.5 (329.3) (877.2)
GODADDY INC-A 38D QT 6,973.5 (329.3) (877.2)
GODADDY INC-A GDDY* MM 6,973.5 (329.3) (877.2)
GODADDY INC-A GDDYEUR EZ 6,973.5 (329.3) (877.2)
GODADDY INC-A 38D TH 6,973.5 (329.3) (877.2)
GODADDY INC-A 38D GZ 6,973.5 (329.3) (877.2)
GOGO INC GOGO US 728.6 (128.3) 212.5
GOGO INC G0G GR 728.6 (128.3) 212.5
GOGO INC G0G QT 728.6 (128.3) 212.5
GOGO INC GOGOEUR EU 728.6 (128.3) 212.5
GOGO INC G0G TH 728.6 (128.3) 212.5
GOGO INC G0G GZ 728.6 (128.3) 212.5
GOOSEHEAD INSU-A GSHD US 324.0 (45.7) 33.1
GOOSEHEAD INSU-A 2OX GR 324.0 (45.7) 33.1
GOOSEHEAD INSU-A GSHDEUR EU 324.0 (45.7) 33.1
GOOSEHEAD INSU-A 2OX TH 324.0 (45.7) 33.1
GOOSEHEAD INSU-A 2OX QT 324.0 (45.7) 33.1
H&R BLOCK - BDR H1RB34 BZ 2,593.2 (643.5) 130.0
H&R BLOCK INC HRB US 2,593.2 (643.5) 130.0
H&R BLOCK INC HRB GR 2,593.2 (643.5) 130.0
H&R BLOCK INC HRB TH 2,593.2 (643.5) 130.0
H&R BLOCK INC HRB QT 2,593.2 (643.5) 130.0
H&R BLOCK INC HRBEUR EU 2,593.2 (643.5) 130.0
H&R BLOCK INC HRBEUR EZ 2,593.2 (643.5) 130.0
H&R BLOCK INC HRB GZ 2,593.2 (643.5) 130.0
H&R BLOCK INC HRB-RM RM 2,593.2 (643.5) 130.0
HCA HEALTHC-BDR H1CA34 BZ 52,438.0 (73.0) 3,741.0
HCA HEALTHCARE I 2BH GR 52,438.0 (73.0) 3,741.0
HCA HEALTHCARE I HCA US 52,438.0 (73.0) 3,741.0
HCA HEALTHCARE I 2BH TH 52,438.0 (73.0) 3,741.0
HCA HEALTHCARE I 2BH QT 52,438.0 (73.0) 3,741.0
HCA HEALTHCARE I HCAEUR EU 52,438.0 (73.0) 3,741.0
HCA HEALTHCARE I HCA* MM 52,438.0 (73.0) 3,741.0
HCA HEALTHCARE I 2BH TE 52,438.0 (73.0) 3,741.0
HCA HEALTHCARE I HCAEUR EZ 52,438.0 (73.0) 3,741.0
HCA HEALTHCARE I 2BH GZ 52,438.0 (73.0) 3,741.0
HCA HEALTHCARE I HCA-RM RM 52,438.0 (73.0) 3,741.0
HCM ACQUISITI-A HCMA US 295.2 276.9 1.0
HCM ACQUISITION HCMAU US 295.2 276.9 1.0
HERBALIFE NUTRIT HOO GR 2,732.0 (1,265.9) 379.5
HERBALIFE NUTRIT HLF US 2,732.0 (1,265.9) 379.5
HERBALIFE NUTRIT HLFEUR EU 2,732.0 (1,265.9) 379.5
HERBALIFE NUTRIT HOO QT 2,732.0 (1,265.9) 379.5
HERBALIFE NUTRIT HOO GZ 2,732.0 (1,265.9) 379.5
HERBALIFE NUTRIT HLFEUR EZ 2,732.0 (1,265.9) 379.5
HERBALIFE NUTRIT HOO TH 2,732.0 (1,265.9) 379.5
HEWLETT-CEDEAR HPQD AR 38,587.0 (2,918.0) (6,352.0)
HEWLETT-CEDEAR HPQC AR 38,587.0 (2,918.0) (6,352.0)
HEWLETT-CEDEAR HPQ AR 38,587.0 (2,918.0) (6,352.0)
HILLEVAX INC HLVX US 322.1 287.2 291.5
HILTON WORLD-BDR H1LT34 BZ 15,512.0 (1,098.0) (502.0)
HILTON WORLDWIDE HLT US 15,512.0 (1,098.0) (502.0)
HILTON WORLDWIDE HI91 TH 15,512.0 (1,098.0) (502.0)
HILTON WORLDWIDE HI91 GR 15,512.0 (1,098.0) (502.0)
HILTON WORLDWIDE HI91 QT 15,512.0 (1,098.0) (502.0)
HILTON WORLDWIDE HLTEUR EU 15,512.0 (1,098.0) (502.0)
HILTON WORLDWIDE HLT* MM 15,512.0 (1,098.0) (502.0)
HILTON WORLDWIDE HI91 TE 15,512.0 (1,098.0) (502.0)
HILTON WORLDWIDE HLTEUR EZ 15,512.0 (1,098.0) (502.0)
HILTON WORLDWIDE HLTW AV 15,512.0 (1,098.0) (502.0)
HILTON WORLDWIDE HI91 GZ 15,512.0 (1,098.0) (502.0)
HILTON WORLDWIDE HLT-RM RM 15,512.0 (1,098.0) (502.0)
HORIZON ACQUIS-A HZON US 528.3 (20.7) (4.5)
HORIZON ACQUISIT HZON/U US 528.3 (20.7) (4.5)
HP COMPANY-BDR HPQB34 BZ 38,587.0 (2,918.0) (6,352.0)
HP INC HPQ* MM 38,587.0 (2,918.0) (6,352.0)
HP INC HPQ US 38,587.0 (2,918.0) (6,352.0)
HP INC 7HP TH 38,587.0 (2,918.0) (6,352.0)
HP INC 7HP GR 38,587.0 (2,918.0) (6,352.0)
HP INC HPQ TE 38,587.0 (2,918.0) (6,352.0)
HP INC HPQ CI 38,587.0 (2,918.0) (6,352.0)
HP INC HPQ SW 38,587.0 (2,918.0) (6,352.0)
HP INC 7HP QT 38,587.0 (2,918.0) (6,352.0)
HP INC HPQUSD SW 38,587.0 (2,918.0) (6,352.0)
HP INC HPQEUR EU 38,587.0 (2,918.0) (6,352.0)
HP INC 7HP GZ 38,587.0 (2,918.0) (6,352.0)
HP INC HPQ AV 38,587.0 (2,918.0) (6,352.0)
HP INC HPQEUR EZ 38,587.0 (2,918.0) (6,352.0)
HP INC HPQ-RM RM 38,587.0 (2,918.0) (6,352.0)
HP INC HPQCL CI 38,587.0 (2,918.0) (6,352.0)
IMMUNITYBIO INC IBRX US 352.9 (429.1) 72.3
INHIBRX INC INBX US 164.9 (35.1) 128.3
INHIBRX INC 1RK GR 164.9 (35.1) 128.3
INHIBRX INC INBXEUR EU 164.9 (35.1) 128.3
INHIBRX INC 1RK QT 164.9 (35.1) 128.3
INNOVATE CORP VATE US 1,165.2 (28.6) 46.2
INSEEGO CORP INSG-RM RM 184.4 (55.8) 29.0
INSMED INC INSM US 994.8 (30.0) 494.5
INSMED INC IM8N GR 994.8 (30.0) 494.5
INSMED INC IM8N TH 994.8 (30.0) 494.5
INSMED INC INSMEUR EU 994.8 (30.0) 494.5
INSMED INC INSM* MM 994.8 (30.0) 494.5
INSPIRED ENTERTA INSE US 286.6 (50.6) 50.8
INSPIRED ENTERTA 4U8 GR 286.6 (50.6) 50.8
INSPIRED ENTERTA INSEEUR EU 286.6 (50.6) 50.8
J. JILL INC JILL US 489.4 (2.0) 35.9
J. JILL INC 1MJ1 GR 489.4 (2.0) 35.9
J. JILL INC JILLEUR EU 489.4 (2.0) 35.9
J. JILL INC 1MJ1 GZ 489.4 (2.0) 35.9
JACK IN THE BOX JBX GR 2,922.5 (736.2) (238.7)
JACK IN THE BOX JACK US 2,922.5 (736.2) (238.7)
JACK IN THE BOX JACK1EUR EU 2,922.5 (736.2) (238.7)
JACK IN THE BOX JBX GZ 2,922.5 (736.2) (238.7)
JACK IN THE BOX JBX QT 2,922.5 (736.2) (238.7)
JACK IN THE BOX JACK1EUR EZ 2,922.5 (736.2) (238.7)
KARYOPHARM THERA KPTI US 358.2 (16.7) 284.3
KARYOPHARM THERA 25K GR 358.2 (16.7) 284.3
KARYOPHARM THERA KPTIEUR EU 358.2 (16.7) 284.3
KARYOPHARM THERA 25K TH 358.2 (16.7) 284.3
KARYOPHARM THERA 25K GZ 358.2 (16.7) 284.3
KARYOPHARM THERA 25K QT 358.2 (16.7) 284.3
KLX ENERGY SERVI KLXE US 440.1 (55.9) 68.5
L BRANDS INC-BDR B1BW34 BZ 5,133.0 (2,608.0) 496.0
LATAMGROWTH SPAC LATGU US 134.9 127.1 1.2
LATAMGROWTH SPAC LATG US 134.9 127.1 1.2
LEGACY VENTUR-B LGYV US 0.0 (0.0) (0.0)
LENNOX INTL INC LXI GR 2,567.6 (203.1) (99.2)
LENNOX INTL INC LII US 2,567.6 (203.1) (99.2)
LENNOX INTL INC LII1EUR EU 2,567.6 (203.1) (99.2)
LENNOX INTL INC LXI TH 2,567.6 (203.1) (99.2)
LENNOX INTL INC LII* MM 2,567.6 (203.1) (99.2)
LESLIE'S INC LESL US 1,076.8 (225.6) 253.9
LESLIE'S INC LE3 GR 1,076.8 (225.6) 253.9
LESLIE'S INC LESLEUR EU 1,076.8 (225.6) 253.9
LESLIE'S INC LE3 QT 1,076.8 (225.6) 253.9
LINDBLAD EXPEDIT LIND US 811.5 (55.1) (126.4)
LINDBLAD EXPEDIT LI4 GR 811.5 (55.1) (126.4)
LINDBLAD EXPEDIT LINDEUR EU 811.5 (55.1) (126.4)
LINDBLAD EXPEDIT LI4 TH 811.5 (55.1) (126.4)
LINDBLAD EXPEDIT LI4 QT 811.5 (55.1) (126.4)
LINDBLAD EXPEDIT LI4 GZ 811.5 (55.1) (126.4)
LOWE'S COS INC LWE GR 46,973.0 (12,868) 4,115.0
LOWE'S COS INC LOW US 46,973.0 (12,868) 4,115.0
LOWE'S COS INC LWE TH 46,973.0 (12,868) 4,115.0
LOWE'S COS INC LOW SW 46,973.0 (12,868) 4,115.0
LOWE'S COS INC LWE QT 46,973.0 (12,868) 4,115.0
LOWE'S COS INC LOWEUR EU 46,973.0 (12,868) 4,115.0
LOWE'S COS INC LWE GZ 46,973.0 (12,868) 4,115.0
LOWE'S COS INC LOW* MM 46,973.0 (12,868) 4,115.0
LOWE'S COS INC LWE TE 46,973.0 (12,868) 4,115.0
LOWE'S COS INC LOWE AV 46,973.0 (12,868) 4,115.0
LOWE'S COS INC LOWEUR EZ 46,973.0 (12,868) 4,115.0
LOWE'S COS INC LOW-RM RM 46,973.0 (12,868) 4,115.0
LOWE'S COS-BDR LOWC34 BZ 46,973.0 (12,868) 4,115.0
MADISON SQUARE G MSGS US 1,300.9 (386.4) (275.0)
MADISON SQUARE G MS8 GR 1,300.9 (386.4) (275.0)
MADISON SQUARE G MSG1EUR EU 1,300.9 (386.4) (275.0)
MADISON SQUARE G MS8 TH 1,300.9 (386.4) (275.0)
MADISON SQUARE G MS8 QT 1,300.9 (386.4) (275.0)
MADISON SQUARE G MS8 GZ 1,300.9 (386.4) (275.0)
MANNKIND CORP NNFN GR 293.8 (237.7) 158.8
MANNKIND CORP MNKD US 293.8 (237.7) 158.8
MANNKIND CORP NNFN TH 293.8 (237.7) 158.8
MANNKIND CORP NNFN QT 293.8 (237.7) 158.8
MANNKIND CORP MNKDEUR EU 293.8 (237.7) 158.8
MANNKIND CORP NNFN GZ 293.8 (237.7) 158.8
MARKETWISE INC MKTW* MM 435.2 (328.0) (119.1)
MASCO CORP MAS US 5,417.0 (416.0) 1,040.0
MASCO CORP MSQ GR 5,417.0 (416.0) 1,040.0
MASCO CORP MSQ TH 5,417.0 (416.0) 1,040.0
MASCO CORP MAS* MM 5,417.0 (416.0) 1,040.0
MASCO CORP MSQ QT 5,417.0 (416.0) 1,040.0
MASCO CORP MAS1EUR EU 5,417.0 (416.0) 1,040.0
MASCO CORP MSQ GZ 5,417.0 (416.0) 1,040.0
MASCO CORP MAS1EUR EZ 5,417.0 (416.0) 1,040.0
MASCO CORP MAS-RM RM 5,417.0 (416.0) 1,040.0
MATCH GROUP -BDR M1TC34 BZ 4,182.8 (358.9) 326.0
MATCH GROUP INC 0JZ7 LI 4,182.8 (358.9) 326.0
MATCH GROUP INC MTCH US 4,182.8 (358.9) 326.0
MATCH GROUP INC MTCH1* MM 4,182.8 (358.9) 326.0
MATCH GROUP INC 4MGN TH 4,182.8 (358.9) 326.0
MATCH GROUP INC 4MGN GR 4,182.8 (358.9) 326.0
MATCH GROUP INC 4MGN QT 4,182.8 (358.9) 326.0
MATCH GROUP INC 4MGN SW 4,182.8 (358.9) 326.0
MATCH GROUP INC MTC2 AV 4,182.8 (358.9) 326.0
MATCH GROUP INC 4MGN GZ 4,182.8 (358.9) 326.0
MATCH GROUP INC MTCH-RM RM 4,182.8 (358.9) 326.0
MBIA INC MBI US 4,015.0 (849.0) -
MBIA INC MBJ GR 4,015.0 (849.0) -
MBIA INC MBJ TH 4,015.0 (849.0) -
MBIA INC MBJ QT 4,015.0 (849.0) -
MBIA INC MBI1EUR EU 4,015.0 (849.0) -
MBIA INC MBJ GZ 4,015.0 (849.0) -
MCDONALD'S - CDR MCDS CN 50,435.6 (6,003.4) 1,622.1
MCDONALD'S - CDR MDO0 GR 50,435.6 (6,003.4) 1,622.1
MCDONALDS - BDR MCDC34 BZ 50,435.6 (6,003.4) 1,622.1
MCDONALDS CORP MDO TH 50,435.6 (6,003.4) 1,622.1
MCDONALDS CORP MCD TE 50,435.6 (6,003.4) 1,622.1
MCDONALDS CORP MDO GR 50,435.6 (6,003.4) 1,622.1
MCDONALDS CORP MCD* MM 50,435.6 (6,003.4) 1,622.1
MCDONALDS CORP MCD US 50,435.6 (6,003.4) 1,622.1
MCDONALDS CORP MCD SW 50,435.6 (6,003.4) 1,622.1
MCDONALDS CORP MCD CI 50,435.6 (6,003.4) 1,622.1
MCDONALDS CORP MDO QT 50,435.6 (6,003.4) 1,622.1
MCDONALDS CORP MCDUSD EU 50,435.6 (6,003.4) 1,622.1
MCDONALDS CORP MCDUSD SW 50,435.6 (6,003.4) 1,622.1
MCDONALDS CORP MCDEUR EU 50,435.6 (6,003.4) 1,622.1
MCDONALDS CORP MDO GZ 50,435.6 (6,003.4) 1,622.1
MCDONALDS CORP MCD AV 50,435.6 (6,003.4) 1,622.1
MCDONALDS CORP MCDUSD EZ 50,435.6 (6,003.4) 1,622.1
MCDONALDS CORP MCDEUR EZ 50,435.6 (6,003.4) 1,622.1
MCDONALDS CORP 0R16 LN 50,435.6 (6,003.4) 1,622.1
MCDONALDS CORP MCD-RM RM 50,435.6 (6,003.4) 1,622.1
MCDONALDS CORP MCDCL CI 50,435.6 (6,003.4) 1,622.1
MCDONALDS-CEDEAR MCDD AR 50,435.6 (6,003.4) 1,622.1
MCDONALDS-CEDEAR MCDC AR 50,435.6 (6,003.4) 1,622.1
MCDONALDS-CEDEAR MCD AR 50,435.6 (6,003.4) 1,622.1
MCKESSON CORP MCK* MM 62,690.0 (2,089.0) (3,349.0)
MCKESSON CORP MCK GR 62,690.0 (2,089.0) (3,349.0)
MCKESSON CORP MCK US 62,690.0 (2,089.0) (3,349.0)
MCKESSON CORP MCK TH 62,690.0 (2,089.0) (3,349.0)
MCKESSON CORP MCK1EUR EU 62,690.0 (2,089.0) (3,349.0)
MCKESSON CORP MCK QT 62,690.0 (2,089.0) (3,349.0)
MCKESSON CORP MCK GZ 62,690.0 (2,089.0) (3,349.0)
MCKESSON CORP MCK1EUR EZ 62,690.0 (2,089.0) (3,349.0)
MCKESSON CORP MCK-RM RM 62,690.0 (2,089.0) (3,349.0)
MCKESSON-BDR M1CK34 BZ 62,690.0 (2,089.0) (3,349.0)
MEDIAALPHA INC-A MAX US 265.2 (68.4) 6.0
MICROSTRATEG-BDR M2ST34 BZ 2,410.3 (383.1) (52.8)
MICROSTRATEGY MSTR US 2,410.3 (383.1) (52.8)
MICROSTRATEGY MIGA GR 2,410.3 (383.1) (52.8)
MICROSTRATEGY MSTREUR EU 2,410.3 (383.1) (52.8)
MICROSTRATEGY MIGA SW 2,410.3 (383.1) (52.8)
MICROSTRATEGY MIGA TH 2,410.3 (383.1) (52.8)
MICROSTRATEGY MIGA QT 2,410.3 (383.1) (52.8)
MICROSTRATEGY MSTREUR EZ 2,410.3 (383.1) (52.8)
MICROSTRATEGY MSTR* MM 2,410.3 (383.1) (52.8)
MICROSTRATEGY MIGA GZ 2,410.3 (383.1) (52.8)
MICROSTRATEGY MSTR-RM RM 2,410.3 (383.1) (52.8)
MICROSTRATEGY MSTR AR 2,410.3 (383.1) (52.8)
MONEYGRAM INTERN MGI US 4,389.1 (186.4) (11.3)
MONEYGRAM INTERN 9M1N GR 4,389.1 (186.4) (11.3)
MONEYGRAM INTERN 9M1N QT 4,389.1 (186.4) (11.3)
MONEYGRAM INTERN 9M1N TH 4,389.1 (186.4) (11.3)
MONEYGRAM INTERN MGIEUR EU 4,389.1 (186.4) (11.3)
MSCI INC 3HM GR 4,997.5 (1,007.9) 497.4
MSCI INC MSCI US 4,997.5 (1,007.9) 497.4
MSCI INC 3HM QT 4,997.5 (1,007.9) 497.4
MSCI INC 3HM SW 4,997.5 (1,007.9) 497.4
MSCI INC MSCI* MM 4,997.5 (1,007.9) 497.4
MSCI INC MSCIEUR EZ 4,997.5 (1,007.9) 497.4
MSCI INC 3HM GZ 4,997.5 (1,007.9) 497.4
MSCI INC 3HM TH 4,997.5 (1,007.9) 497.4
MSCI INC MSCI AV 4,997.5 (1,007.9) 497.4
MSCI INC MSCI-RM RM 4,997.5 (1,007.9) 497.4
MSCI INC-BDR M1SC34 BZ 4,997.5 (1,007.9) 497.4
NATHANS FAMOUS NATH US 81.8 (46.0) 58.4
NATHANS FAMOUS NFA GR 81.8 (46.0) 58.4
NATHANS FAMOUS NATHEUR EU 81.8 (46.0) 58.4
NEW ENG RLTY-LP NEN US 387.8 (61.0) -
NINE ENERGY SERV NINE US 407.5 (32.1) 86.0
NINE ENERGY SERV NEJ GR 407.5 (32.1) 86.0
NINE ENERGY SERV NINE1EUR EU 407.5 (32.1) 86.0
NINE ENERGY SERV NINE1EUR EZ 407.5 (32.1) 86.0
NINE ENERGY SERV NEJ GZ 407.5 (32.1) 86.0
NINE ENERGY SERV NEJ TH 407.5 (32.1) 86.0
NINE ENERGY SERV NEJ QT 407.5 (32.1) 86.0
NOVAVAX INC NVV1 GR 2,267.4 (566.0) 92.0
NOVAVAX INC NVAX US 2,267.4 (566.0) 92.0
NOVAVAX INC NVV1 TH 2,267.4 (566.0) 92.0
NOVAVAX INC NVV1 QT 2,267.4 (566.0) 92.0
NOVAVAX INC NVAXEUR EU 2,267.4 (566.0) 92.0
NOVAVAX INC NVV1 GZ 2,267.4 (566.0) 92.0
NOVAVAX INC NVV1 SW 2,267.4 (566.0) 92.0
NOVAVAX INC NVAX* MM 2,267.4 (566.0) 92.0
NOVAVAX INC 0A3S LI 2,267.4 (566.0) 92.0
NOVAVAX INC NVV1 BU 2,267.4 (566.0) 92.0
NUTANIX INC - A NTNX US 2,357.4 (791.0) 524.3
NUTANIX INC - A 0NU GR 2,357.4 (791.0) 524.3
NUTANIX INC - A NTNXEUR EU 2,357.4 (791.0) 524.3
NUTANIX INC - A 0NU TH 2,357.4 (791.0) 524.3
NUTANIX INC - A 0NU QT 2,357.4 (791.0) 524.3
NUTANIX INC - A 0NU GZ 2,357.4 (791.0) 524.3
NUTANIX INC - A NTNXEUR EZ 2,357.4 (791.0) 524.3
NUTANIX INC - A NTNX-RM RM 2,357.4 (791.0) 524.3
NUTANIX INC-BDR N2TN34 BZ 2,357.4 (791.0) 524.3
O'REILLY AUT-BDR ORLY34 BZ 12,628.0 (1,060.8) (2,015.6)
O'REILLY AUTOMOT OM6 GR 12,628.0 (1,060.8) (2,015.6)
O'REILLY AUTOMOT ORLY US 12,628.0 (1,060.8) (2,015.6)
O'REILLY AUTOMOT OM6 TH 12,628.0 (1,060.8) (2,015.6)
O'REILLY AUTOMOT ORLY SW 12,628.0 (1,060.8) (2,015.6)
O'REILLY AUTOMOT OM6 QT 12,628.0 (1,060.8) (2,015.6)
O'REILLY AUTOMOT ORLY* MM 12,628.0 (1,060.8) (2,015.6)
O'REILLY AUTOMOT ORLYEUR EU 12,628.0 (1,060.8) (2,015.6)
O'REILLY AUTOMOT OM6 GZ 12,628.0 (1,060.8) (2,015.6)
O'REILLY AUTOMOT ORLY AV 12,628.0 (1,060.8) (2,015.6)
O'REILLY AUTOMOT ORLYEUR EZ 12,628.0 (1,060.8) (2,015.6)
O'REILLY AUTOMOT ORLY-RM RM 12,628.0 (1,060.8) (2,015.6)
OAK STREET HEALT OSH US 2,100.5 (155.6) 509.6
OAK STREET HEALT HE6 GZ 2,100.5 (155.6) 509.6
OAK STREET HEALT HE6 GR 2,100.5 (155.6) 509.6
OAK STREET HEALT OSH3EUR EU 2,100.5 (155.6) 509.6
OAK STREET HEALT HE6 TH 2,100.5 (155.6) 509.6
OAK STREET HEALT HE6 QT 2,100.5 (155.6) 509.6
OAK STREET HEALT OSH* MM 2,100.5 (155.6) 509.6
OMEROS CORP 3O8 GR 457.6 (46.3) 249.0
OMEROS CORP OMER US 457.6 (46.3) 249.0
OMEROS CORP 3O8 TH 457.6 (46.3) 249.0
OMEROS CORP OMEREUR EU 457.6 (46.3) 249.0
OMEROS CORP 3O8 QT 457.6 (46.3) 249.0
OMEROS CORP 3O8 GZ 457.6 (46.3) 249.0
ORACLE BDR ORCL34 BZ 128,469 (3,776.0) (9,545.0)
ORACLE CO-CEDEAR ORCLC AR 128,469 (3,776.0) (9,545.0)
ORACLE CO-CEDEAR ORCL AR 128,469 (3,776.0) (9,545.0)
ORACLE CO-CEDEAR ORCLD AR 128,469 (3,776.0) (9,545.0)
ORACLE CORP ORCL US 128,469 (3,776.0) (9,545.0)
ORACLE CORP ORC GR 128,469 (3,776.0) (9,545.0)
ORACLE CORP ORCL* MM 128,469 (3,776.0) (9,545.0)
ORACLE CORP ORCL TE 128,469 (3,776.0) (9,545.0)
ORACLE CORP ORC TH 128,469 (3,776.0) (9,545.0)
ORACLE CORP ORCL CI 128,469 (3,776.0) (9,545.0)
ORACLE CORP ORCL SW 128,469 (3,776.0) (9,545.0)
ORACLE CORP ORCLEUR EU 128,469 (3,776.0) (9,545.0)
ORACLE CORP ORC QT 128,469 (3,776.0) (9,545.0)
ORACLE CORP ORCLUSD EU 128,469 (3,776.0) (9,545.0)
ORACLE CORP ORCLUSD SW 128,469 (3,776.0) (9,545.0)
ORACLE CORP ORC GZ 128,469 (3,776.0) (9,545.0)
ORACLE CORP 0R1Z LN 128,469 (3,776.0) (9,545.0)
ORACLE CORP ORCL AV 128,469 (3,776.0) (9,545.0)
ORACLE CORP ORCLEUR EZ 128,469 (3,776.0) (9,545.0)
ORACLE CORP ORCLUSD EZ 128,469 (3,776.0) (9,545.0)
ORACLE CORP ORCLCL CI 128,469 (3,776.0) (9,545.0)
ORACLE CORP ORCL-RM RM 128,469 (3,776.0) (9,545.0)
ORGANON & CO OGN US 10,437.0 (1,066.0) 1,264.0
ORGANON & CO 7XP TH 10,437.0 (1,066.0) 1,264.0
ORGANON & CO OGN-WEUR EU 10,437.0 (1,066.0) 1,264.0
ORGANON & CO 7XP GR 10,437.0 (1,066.0) 1,264.0
ORGANON & CO OGN* MM 10,437.0 (1,066.0) 1,264.0
ORGANON & CO 7XP GZ 10,437.0 (1,066.0) 1,264.0
ORGANON & CO 7XP QT 10,437.0 (1,066.0) 1,264.0
ORGANON & CO OGN-RM RM 10,437.0 (1,066.0) 1,264.0
OTIS WORLDWI OTIS US 9,819.0 (4,664.0) (700.0)
OTIS WORLDWI 4PG GR 9,819.0 (4,664.0) (700.0)
OTIS WORLDWI 4PG GZ 9,819.0 (4,664.0) (700.0)
OTIS WORLDWI OTISEUR EZ 9,819.0 (4,664.0) (700.0)
OTIS WORLDWI OTISEUR EU 9,819.0 (4,664.0) (700.0)
OTIS WORLDWI OTIS* MM 9,819.0 (4,664.0) (700.0)
OTIS WORLDWI 4PG TH 9,819.0 (4,664.0) (700.0)
OTIS WORLDWI 4PG QT 9,819.0 (4,664.0) (700.0)
OTIS WORLDWI OTIS AV 9,819.0 (4,664.0) (700.0)
OTIS WORLDWI OTIS-RM RM 9,819.0 (4,664.0) (700.0)
OTIS WORLDWI-BDR O1TI34 BZ 9,819.0 (4,664.0) (700.0)
PAPA JOHN'S INTL PZZA US 829.7 (257.4) (24.2)
PAPA JOHN'S INTL PP1 GR 829.7 (257.4) (24.2)
PAPA JOHN'S INTL PZZAEUR EU 829.7 (257.4) (24.2)
PAPA JOHN'S INTL PP1 GZ 829.7 (257.4) (24.2)
PAPA JOHN'S INTL PP1 TH 829.7 (257.4) (24.2)
PAPA JOHN'S INTL PP1 QT 829.7 (257.4) (24.2)
PAPAYA GROWTH -A PPYA US 296.2 280.8 0.9
PAPAYA GROWTH OP PPYAU US 296.2 280.8 0.9
PAPAYA GROWTH OP CC40 GR 296.2 280.8 0.9
PAPAYA GROWTH OP PPYAUEUR EU 296.2 280.8 0.9
PET VALU HOLDING PET CN 697.3 (25.3) 68.9
PETRO USA INC PBAJ US - (0.1) (0.1)
PHATHOM PHARMACE PHAT US 201.9 (26.4) 174.9
PHILIP MORRI-BDR PHMO34 BZ 61,681.0 (6,311.0) (7,717.0)
PHILIP MORRIS IN PM1EUR EU 61,681.0 (6,311.0) (7,717.0)
PHILIP MORRIS IN PMI SW 61,681.0 (6,311.0) (7,717.0)
PHILIP MORRIS IN PM1 TE 61,681.0 (6,311.0) (7,717.0)
PHILIP MORRIS IN 4I1 TH 61,681.0 (6,311.0) (7,717.0)
PHILIP MORRIS IN PM1CHF EU 61,681.0 (6,311.0) (7,717.0)
PHILIP MORRIS IN 4I1 GR 61,681.0 (6,311.0) (7,717.0)
PHILIP MORRIS IN PM US 61,681.0 (6,311.0) (7,717.0)
PHILIP MORRIS IN PMIZ IX 61,681.0 (6,311.0) (7,717.0)
PHILIP MORRIS IN PMIZ EB 61,681.0 (6,311.0) (7,717.0)
PHILIP MORRIS IN 4I1 QT 61,681.0 (6,311.0) (7,717.0)
PHILIP MORRIS IN 4I1 GZ 61,681.0 (6,311.0) (7,717.0)
PHILIP MORRIS IN 0M8V LN 61,681.0 (6,311.0) (7,717.0)
PHILIP MORRIS IN PMOR AV 61,681.0 (6,311.0) (7,717.0)
PHILIP MORRIS IN PM* MM 61,681.0 (6,311.0) (7,717.0)
PHILIP MORRIS IN PM1CHF EZ 61,681.0 (6,311.0) (7,717.0)
PHILIP MORRIS IN PM1EUR EZ 61,681.0 (6,311.0) (7,717.0)
PHILIP MORRIS IN PM-RM RM 61,681.0 (6,311.0) (7,717.0)
PLANET FITNESS I P2LN34 BZ 2,846.3 (248.1) 282.3
PLANET FITNESS-A PLNT US 2,846.3 (248.1) 282.3
PLANET FITNESS-A 3PL TH 2,846.3 (248.1) 282.3
PLANET FITNESS-A 3PL GR 2,846.3 (248.1) 282.3
PLANET FITNESS-A 3PL QT 2,846.3 (248.1) 282.3
PLANET FITNESS-A PLNT1EUR EU 2,846.3 (248.1) 282.3
PLANET FITNESS-A PLNT1EUR EZ 2,846.3 (248.1) 282.3
PLANET FITNESS-A 3PL GZ 2,846.3 (248.1) 282.3
PROS HOLDINGS IN PH2 GR 453.0 (35.5) 106.3
PROS HOLDINGS IN PRO US 453.0 (35.5) 106.3
PROS HOLDINGS IN PRO1EUR EU 453.0 (35.5) 106.3
PTC THERAPEUTICS PTCT US 1,576.4 (226.9) 97.2
PTC THERAPEUTICS BH3 GR 1,576.4 (226.9) 97.2
PTC THERAPEUTICS P91 TH 1,576.4 (226.9) 97.2
PTC THERAPEUTICS P91 QT 1,576.4 (226.9) 97.2
RAPID7 INC RPD US 1,359.0 (120.1) (21.0)
RAPID7 INC R7D GR 1,359.0 (120.1) (21.0)
RAPID7 INC RPDEUR EU 1,359.0 (120.1) (21.0)
RAPID7 INC R7D TH 1,359.0 (120.1) (21.0)
RAPID7 INC RPD* MM 1,359.0 (120.1) (21.0)
RAPID7 INC R7D GZ 1,359.0 (120.1) (21.0)
RAPID7 INC R7D QT 1,359.0 (120.1) (21.0)
REDWOODS ACQUISI RWODU US 117.2 112.6 0.3
REDWOODS ACQUISI RWOD US 117.2 112.6 0.3
REVLON INC-A REV* MM 2,520.6 (2,497.1) (6.0)
RIMINI STREET IN RMNI US 333.3 (75.4) (61.6)
RIMINI STREET IN 0QH GR 333.3 (75.4) (61.6)
RIMINI STREET IN RMNIEUR EU 333.3 (75.4) (61.6)
RIMINI STREET IN 0QH QT 333.3 (75.4) (61.6)
RINGCENTRAL IN-A RNG US 2,073.7 (283.3) 143.5
RINGCENTRAL IN-A 3RCA GR 2,073.7 (283.3) 143.5
RINGCENTRAL IN-A RNGEUR EU 2,073.7 (283.3) 143.5
RINGCENTRAL IN-A 3RCA TH 2,073.7 (283.3) 143.5
RINGCENTRAL IN-A 3RCA QT 2,073.7 (283.3) 143.5
RINGCENTRAL IN-A RNGEUR EZ 2,073.7 (283.3) 143.5
RINGCENTRAL IN-A RNG* MM 2,073.7 (283.3) 143.5
RINGCENTRAL IN-A 3RCA GZ 2,073.7 (283.3) 143.5
RINGCENTRAL-BDR R2NG34 BZ 2,073.7 (283.3) 143.5
RITE AID CORP RAD US 8,209.8 (403.7) 854.1
RITE AID CORP RTA1 GR 8,209.8 (403.7) 854.1
RITE AID CORP RTA1 TH 8,209.8 (403.7) 854.1
RITE AID CORP RTA1 QT 8,209.8 (403.7) 854.1
RITE AID CORP RADEUR EU 8,209.8 (403.7) 854.1
RITE AID CORP RTA1 GZ 8,209.8 (403.7) 854.1
SABRE CORP SABR US 4,962.9 (872.8) 545.9
SABRE CORP 19S GR 4,962.9 (872.8) 545.9
SABRE CORP 19S TH 4,962.9 (872.8) 545.9
SABRE CORP 19S QT 4,962.9 (872.8) 545.9
SABRE CORP SABREUR EU 4,962.9 (872.8) 545.9
SABRE CORP SABREUR EZ 4,962.9 (872.8) 545.9
SABRE CORP 19S GZ 4,962.9 (872.8) 545.9
SBA COMM CORP 4SB GR 9,942.4 (5,324.2) (801.9)
SBA COMM CORP SBAC US 9,942.4 (5,324.2) (801.9)
SBA COMM CORP 4SB TH 9,942.4 (5,324.2) (801.9)
SBA COMM CORP 4SB QT 9,942.4 (5,324.2) (801.9)
SBA COMM CORP SBACEUR EU 9,942.4 (5,324.2) (801.9)
SBA COMM CORP 4SB GZ 9,942.4 (5,324.2) (801.9)
SBA COMM CORP SBAC* MM 9,942.4 (5,324.2) (801.9)
SBA COMMUN - BDR S1BA34 BZ 9,942.4 (5,324.2) (801.9)
SEAGATE TECHNOLO S1TX34 BZ 7,867.0 (470.0) 356.0
SEAGATE TECHNOLO STXN MM 7,867.0 (470.0) 356.0
SEAGATE TECHNOLO STX US 7,867.0 (470.0) 356.0
SEAGATE TECHNOLO 847 GR 7,867.0 (470.0) 356.0
SEAGATE TECHNOLO 847 GZ 7,867.0 (470.0) 356.0
SEAGATE TECHNOLO STX4EUR EU 7,867.0 (470.0) 356.0
SEAGATE TECHNOLO 847 TH 7,867.0 (470.0) 356.0
SEAGATE TECHNOLO STXH AV 7,867.0 (470.0) 356.0
SEAGATE TECHNOLO 847 QT 7,867.0 (470.0) 356.0
SEAGATE TECHNOLO STH TE 7,867.0 (470.0) 356.0
SEAWORLD ENTERTA SEAS US 2,355.5 (420.3) (153.8)
SEAWORLD ENTERTA W2L GR 2,355.5 (420.3) (153.8)
SEAWORLD ENTERTA W2L TH 2,355.5 (420.3) (153.8)
SEAWORLD ENTERTA SEASEUR EU 2,355.5 (420.3) (153.8)
SEAWORLD ENTERTA W2L QT 2,355.5 (420.3) (153.8)
SEAWORLD ENTERTA W2L GZ 2,355.5 (420.3) (153.8)
SILVER SPIKE-A SPKC/U CN 128.5 (6.3) 0.5
SIRIUS XM HO-BDR SRXM34 BZ 10,022.0 (3,351.0) (1,943.0)
SIRIUS XM HOLDIN SIRI US 10,022.0 (3,351.0) (1,943.0)
SIRIUS XM HOLDIN RDO TH 10,022.0 (3,351.0) (1,943.0)
SIRIUS XM HOLDIN RDO GR 10,022.0 (3,351.0) (1,943.0)
SIRIUS XM HOLDIN RDO QT 10,022.0 (3,351.0) (1,943.0)
SIRIUS XM HOLDIN SIRIEUR EU 10,022.0 (3,351.0) (1,943.0)
SIRIUS XM HOLDIN RDO GZ 10,022.0 (3,351.0) (1,943.0)
SIRIUS XM HOLDIN SIRI AV 10,022.0 (3,351.0) (1,943.0)
SIRIUS XM HOLDIN SIRIEUR EZ 10,022.0 (3,351.0) (1,943.0)
SIX FLAGS ENTERT SIX US 2,704.1 (421.8) (212.8)
SIX FLAGS ENTERT 6FE GR 2,704.1 (421.8) (212.8)
SIX FLAGS ENTERT SIXEUR EU 2,704.1 (421.8) (212.8)
SIX FLAGS ENTERT 6FE TH 2,704.1 (421.8) (212.8)
SIX FLAGS ENTERT 6FE QT 2,704.1 (421.8) (212.8)
SKYX PLATFORMS C SKYX US 47.8 12.5 15.0
SLEEP NUMBER COR SNBR US 940.8 (437.5) (725.6)
SLEEP NUMBER COR SL2 GR 940.8 (437.5) (725.6)
SLEEP NUMBER COR SNBREUR EU 940.8 (437.5) (725.6)
SLEEP NUMBER COR SL2 TH 940.8 (437.5) (725.6)
SLEEP NUMBER COR SL2 QT 940.8 (437.5) (725.6)
SLEEP NUMBER COR SL2 GZ 940.8 (437.5) (725.6)
SMILEDIRECTCLUB SDC* MM 631.8 (321.9) 190.3
SPIRIT AEROSYS-A S9Q GR 6,666.2 (243.8) 1,205.8
SPIRIT AEROSYS-A SPR US 6,666.2 (243.8) 1,205.8
SPIRIT AEROSYS-A S9Q TH 6,666.2 (243.8) 1,205.8
SPIRIT AEROSYS-A SPREUR EU 6,666.2 (243.8) 1,205.8
SPIRIT AEROSYS-A S9Q QT 6,666.2 (243.8) 1,205.8
SPIRIT AEROSYS-A SPREUR EZ 6,666.2 (243.8) 1,205.8
SPIRIT AEROSYS-A S9Q GZ 6,666.2 (243.8) 1,205.8
SPIRIT AEROSYS-A SPR-RM RM 6,666.2 (243.8) 1,205.8
SPLUNK INC SPLK US 5,251.3 (569.6) 525.9
SPLUNK INC S0U GR 5,251.3 (569.6) 525.9
SPLUNK INC S0U TH 5,251.3 (569.6) 525.9
SPLUNK INC S0U QT 5,251.3 (569.6) 525.9
SPLUNK INC SPLK SW 5,251.3 (569.6) 525.9
SPLUNK INC SPLKEUR EU 5,251.3 (569.6) 525.9
SPLUNK INC SPLK* MM 5,251.3 (569.6) 525.9
SPLUNK INC SPLKEUR EZ 5,251.3 (569.6) 525.9
SPLUNK INC S0U GZ 5,251.3 (569.6) 525.9
SPLUNK INC SPLK-RM RM 5,251.3 (569.6) 525.9
SPLUNK INC - BDR S1PL34 BZ 5,251.3 (569.6) 525.9
SPRING VALLEY AC SVIIU US 0.7 (0.0) (0.7)
SPRING VALLEY AC SVII US 0.7 (0.0) (0.7)
SQUARESPACE -BDR S2QS34 BZ 962.8 (62.1) (98.7)
SQUARESPACE IN-A SQSP US 962.8 (62.1) (98.7)
SQUARESPACE IN-A 8DT GR 962.8 (62.1) (98.7)
SQUARESPACE IN-A 8DT GZ 962.8 (62.1) (98.7)
SQUARESPACE IN-A SQSPEUR EU 962.8 (62.1) (98.7)
SQUARESPACE IN-A 8DT TH 962.8 (62.1) (98.7)
SQUARESPACE IN-A 8DT QT 962.8 (62.1) (98.7)
STARBUCKS CORP SBUX US 28,256.1 (8,665.9) (2,311.3)
STARBUCKS CORP SBUX* MM 28,256.1 (8,665.9) (2,311.3)
STARBUCKS CORP SRB TH 28,256.1 (8,665.9) (2,311.3)
STARBUCKS CORP SRB GR 28,256.1 (8,665.9) (2,311.3)
STARBUCKS CORP SBUX CI 28,256.1 (8,665.9) (2,311.3)
STARBUCKS CORP SBUX SW 28,256.1 (8,665.9) (2,311.3)
STARBUCKS CORP SRB QT 28,256.1 (8,665.9) (2,311.3)
STARBUCKS CORP SBUX PE 28,256.1 (8,665.9) (2,311.3)
STARBUCKS CORP SBUXUSD SW 28,256.1 (8,665.9) (2,311.3)
STARBUCKS CORP SRB GZ 28,256.1 (8,665.9) (2,311.3)
STARBUCKS CORP SBUX AV 28,256.1 (8,665.9) (2,311.3)
STARBUCKS CORP SBUX TE 28,256.1 (8,665.9) (2,311.3)
STARBUCKS CORP SBUXEUR EU 28,256.1 (8,665.9) (2,311.3)
STARBUCKS CORP SBUX IM 28,256.1 (8,665.9) (2,311.3)
STARBUCKS CORP SBUXEUR EZ 28,256.1 (8,665.9) (2,311.3)
STARBUCKS CORP 0QZH LI 28,256.1 (8,665.9) (2,311.3)
STARBUCKS CORP SBUX-RM RM 28,256.1 (8,665.9) (2,311.3)
STARBUCKS CORP SBUXCL CI 28,256.1 (8,665.9) (2,311.3)
STARBUCKS CORP SBUX_KZ KZ 28,256.1 (8,665.9) (2,311.3)
STARBUCKS CORP SRBD BQ 28,256.1 (8,665.9) (2,311.3)
STARBUCKS-BDR SBUB34 BZ 28,256.1 (8,665.9) (2,311.3)
STARBUCKS-CEDEAR SBUX AR 28,256.1 (8,665.9) (2,311.3)
STARBUCKS-CEDEAR SBUXD AR 28,256.1 (8,665.9) (2,311.3)
TABULA RASA HEAL TRHC US 403.8 (31.7) 81.8
TABULA RASA HEAL 43T GR 403.8 (31.7) 81.8
TABULA RASA HEAL TRHCEUR EU 403.8 (31.7) 81.8
TABULA RASA HEAL 43T TH 403.8 (31.7) 81.8
TABULA RASA HEAL 43T GZ 403.8 (31.7) 81.8
TEMPUR SEALY INT TPD GR 4,359.8 (12.3) 214.0
TEMPUR SEALY INT TPX US 4,359.8 (12.3) 214.0
TEMPUR SEALY INT TPXEUR EU 4,359.8 (12.3) 214.0
TEMPUR SEALY INT TPD TH 4,359.8 (12.3) 214.0
TEMPUR SEALY INT TPD GZ 4,359.8 (12.3) 214.0
TEMPUR SEALY INT T2PX34 BZ 4,359.8 (12.3) 214.0
TEMPUR SEALY INT TPX-RM RM 4,359.8 (12.3) 214.0
TORRID HOLDINGS CURV US 564.3 (229.1) (51.1)
TRANSDIGM - BDR T1DG34 BZ 18,489.0 (3,328.0) 4,521.0
TRANSDIGM GROUP T7D GR 18,489.0 (3,328.0) 4,521.0
TRANSDIGM GROUP TDG US 18,489.0 (3,328.0) 4,521.0
TRANSDIGM GROUP T7D QT 18,489.0 (3,328.0) 4,521.0
TRANSDIGM GROUP TDGEUR EU 18,489.0 (3,328.0) 4,521.0
TRANSDIGM GROUP T7D TH 18,489.0 (3,328.0) 4,521.0
TRANSDIGM GROUP TDG* MM 18,489.0 (3,328.0) 4,521.0
TRANSDIGM GROUP TDGEUR EZ 18,489.0 (3,328.0) 4,521.0
TRANSDIGM GROUP TDG-RM RM 18,489.0 (3,328.0) 4,521.0
TRAVEL + LEISURE WD5A GR 6,380.0 (903.0) 513.0
TRAVEL + LEISURE TNL US 6,380.0 (903.0) 513.0
TRAVEL + LEISURE WD5A TH 6,380.0 (903.0) 513.0
TRAVEL + LEISURE WD5A QT 6,380.0 (903.0) 513.0
TRAVEL + LEISURE WYNEUR EU 6,380.0 (903.0) 513.0
TRAVEL + LEISURE 0M1K LI 6,380.0 (903.0) 513.0
TRAVEL + LEISURE WD5A GZ 6,380.0 (903.0) 513.0
TRAVEL + LEISURE TNL* MM 6,380.0 (903.0) 513.0
TRIUMPH GROUP TG7 GR 1,597.3 (688.1) 453.2
TRIUMPH GROUP TGI US 1,597.3 (688.1) 453.2
TRIUMPH GROUP TGIEUR EU 1,597.3 (688.1) 453.2
TRIUMPH GROUP TG7 TH 1,597.3 (688.1) 453.2
TUPPERWARE BRAND TUP US 1,053.6 (175.4) 108.1
TUPPERWARE BRAND TUP GR 1,053.6 (175.4) 108.1
TUPPERWARE BRAND TUP QT 1,053.6 (175.4) 108.1
TUPPERWARE BRAND TUP GZ 1,053.6 (175.4) 108.1
TUPPERWARE BRAND TUP TH 1,053.6 (175.4) 108.1
TUPPERWARE BRAND TUP1EUR EU 1,053.6 (175.4) 108.1
TUPPERWARE BRAND TUP1EUR EZ 1,053.6 (175.4) 108.1
UBIQUITI INC 3UB GR 1,268.7 (248.0) 530.1
UBIQUITI INC UI US 1,268.7 (248.0) 530.1
UBIQUITI INC UBNTEUR EU 1,268.7 (248.0) 530.1
UBIQUITI INC 3UB TH 1,268.7 (248.0) 530.1
UNISYS CORP UISEUR EU 2,058.1 (135.3) 236.4
UNISYS CORP UIS US 2,058.1 (135.3) 236.4
UNISYS CORP UIS SW 2,058.1 (135.3) 236.4
UNISYS CORP USY1 TH 2,058.1 (135.3) 236.4
UNISYS CORP USY1 GR 2,058.1 (135.3) 236.4
UNISYS CORP USY1 GZ 2,058.1 (135.3) 236.4
UNISYS CORP USY1 QT 2,058.1 (135.3) 236.4
UNITI GROUP INC UNIT US 4,811.0 (2,260.2) -
UNITI GROUP INC 8XC GR 4,811.0 (2,260.2) -
UNITI GROUP INC 8XC TH 4,811.0 (2,260.2) -
UNITI GROUP INC 8XC GZ 4,811.0 (2,260.2) -
UROGEN PHARMA LT URGN US 128.5 (63.3) 102.6
UROGEN PHARMA LT UR8 GR 128.5 (63.3) 102.6
UROGEN PHARMA LT URGNEUR EU 128.5 (63.3) 102.6
VECTOR GROUP LTD VGR GR 1,049.3 (823.3) 281.6
VECTOR GROUP LTD VGR US 1,049.3 (823.3) 281.6
VECTOR GROUP LTD VGR QT 1,049.3 (823.3) 281.6
VECTOR GROUP LTD VGREUR EU 1,049.3 (823.3) 281.6
VECTOR GROUP LTD VGREUR EZ 1,049.3 (823.3) 281.6
VECTOR GROUP LTD VGR TH 1,049.3 (823.3) 281.6
VECTOR GROUP LTD VGR GZ 1,049.3 (823.3) 281.6
VERISIGN INC VRS TH 1,733.4 (1,562.2) (78.2)
VERISIGN INC VRS GR 1,733.4 (1,562.2) (78.2)
VERISIGN INC VRSN US 1,733.4 (1,562.2) (78.2)
VERISIGN INC VRS QT 1,733.4 (1,562.2) (78.2)
VERISIGN INC VRSNEUR EU 1,733.4 (1,562.2) (78.2)
VERISIGN INC VRS GZ 1,733.4 (1,562.2) (78.2)
VERISIGN INC VRSN* MM 1,733.4 (1,562.2) (78.2)
VERISIGN INC VRSNEUR EZ 1,733.4 (1,562.2) (78.2)
VERISIGN INC VRSN-RM RM 1,733.4 (1,562.2) (78.2)
VERISIGN INC-BDR VRSN34 BZ 1,733.4 (1,562.2) (78.2)
VERISIGN-CEDEAR VRSN AR 1,733.4 (1,562.2) (78.2)
VIVINT SMART HOM VVNT US 2,959.0 (1,740.2) (528.4)
W&T OFFSHORE INC WTI US 1,490.3 (55.0) 229.8
W&T OFFSHORE INC UWV GR 1,490.3 (55.0) 229.8
W&T OFFSHORE INC WTI1EUR EU 1,490.3 (55.0) 229.8
W&T OFFSHORE INC UWV TH 1,490.3 (55.0) 229.8
W&T OFFSHORE INC UWV GZ 1,490.3 (55.0) 229.8
WAYFAIR INC- A W US 3,653.0 (2,378.0) 43.0
WAYFAIR INC- A 1WF GR 3,653.0 (2,378.0) 43.0
WAYFAIR INC- A 1WF TH 3,653.0 (2,378.0) 43.0
WAYFAIR INC- A WEUR EU 3,653.0 (2,378.0) 43.0
WAYFAIR INC- A 1WF QT 3,653.0 (2,378.0) 43.0
WAYFAIR INC- A WEUR EZ 3,653.0 (2,378.0) 43.0
WAYFAIR INC- A 1WF GZ 3,653.0 (2,378.0) 43.0
WAYFAIR INC- A W* MM 3,653.0 (2,378.0) 43.0
WAYFAIR INC- BDR W2YF34 BZ 3,653.0 (2,378.0) 43.0
WEBER INC - A WEBR US 1,560.3 (504.4) (0.9)
WEWORK INC-CL A WE* MM 18,339.0 (2,755.0) (1,228.0)
WINGSTOP INC WING US 411.0 (406.6) 162.4
WINGSTOP INC EWG GR 411.0 (406.6) 162.4
WINGSTOP INC WING1EUR EU 411.0 (406.6) 162.4
WINGSTOP INC EWG GZ 411.0 (406.6) 162.4
WINMARK CORP WINA US 33.7 (60.4) 9.6
WINMARK CORP GBZ GR 33.7 (60.4) 9.6
WORKIVA INC WK US 776.6 (5.5) 192.1
WORKIVA INC 0WKA GR 776.6 (5.5) 192.1
WORKIVA INC WKEUR EU 776.6 (5.5) 192.1
WORKIVA INC 0WKA TH 776.6 (5.5) 192.1
WORKIVA INC 0WKA QT 776.6 (5.5) 192.1
WORKIVA INC WK* MM 776.6 (5.5) 192.1
WW INTERNATIONAL WW US 1,092.8 (659.5) 89.8
WW INTERNATIONAL WW6 GR 1,092.8 (659.5) 89.8
WW INTERNATIONAL WW6 TH 1,092.8 (659.5) 89.8
WW INTERNATIONAL WTWEUR EU 1,092.8 (659.5) 89.8
WW INTERNATIONAL WW6 QT 1,092.8 (659.5) 89.8
WW INTERNATIONAL WW6 GZ 1,092.8 (659.5) 89.8
WW INTERNATIONAL WTW AV 1,092.8 (659.5) 89.8
WW INTERNATIONAL WTWEUR EZ 1,092.8 (659.5) 89.8
WW INTERNATIONAL WW-RM RM 1,092.8 (659.5) 89.8
WYNN RESORTS LTD WYR GR 11,779.3 (1,597.0) 688.4
WYNN RESORTS LTD WYNN* MM 11,779.3 (1,597.0) 688.4
WYNN RESORTS LTD WYNN US 11,779.3 (1,597.0) 688.4
WYNN RESORTS LTD WYR TH 11,779.3 (1,597.0) 688.4
WYNN RESORTS LTD WYNN SW 11,779.3 (1,597.0) 688.4
WYNN RESORTS LTD WYR QT 11,779.3 (1,597.0) 688.4
WYNN RESORTS LTD WYNNEUR EU 11,779.3 (1,597.0) 688.4
WYNN RESORTS LTD WYR GZ 11,779.3 (1,597.0) 688.4
WYNN RESORTS LTD WYNNEUR EZ 11,779.3 (1,597.0) 688.4
WYNN RESORTS LTD WYNN-RM RM 11,779.3 (1,597.0) 688.4
WYNN RESORTS-BDR W1YN34 BZ 11,779.3 (1,597.0) 688.4
YUM! BRANDS -BDR YUMR34 BZ 5,846.0 (8,876.0) (56.0)
YUM! BRANDS INC YUM US 5,846.0 (8,876.0) (56.0)
YUM! BRANDS INC TGR GR 5,846.0 (8,876.0) (56.0)
YUM! BRANDS INC TGR TH 5,846.0 (8,876.0) (56.0)
YUM! BRANDS INC YUMEUR EU 5,846.0 (8,876.0) (56.0)
YUM! BRANDS INC TGR QT 5,846.0 (8,876.0) (56.0)
YUM! BRANDS INC YUM SW 5,846.0 (8,876.0) (56.0)
YUM! BRANDS INC YUMUSD SW 5,846.0 (8,876.0) (56.0)
YUM! BRANDS INC TGR GZ 5,846.0 (8,876.0) (56.0)
YUM! BRANDS INC YUM* MM 5,846.0 (8,876.0) (56.0)
YUM! BRANDS INC YUM AV 5,846.0 (8,876.0) (56.0)
YUM! BRANDS INC YUMEUR EZ 5,846.0 (8,876.0) (56.0)
YUM! BRANDS INC YUM-RM RM 5,846.0 (8,876.0) (56.0)
*********
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
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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
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Monthly Operating Reports are summarized in every Saturday edition
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The Sunday TCR delivers securitization rating news from the week
then-ending.
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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
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Rousel Elaine Tumanda, Joel Anthony G. Lopez, Psyche A. Castillon,
Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and
Peter A. Chapman, Editors.
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