/raid1/www/Hosts/bankrupt/TCR_Public/230327.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Monday, March 27, 2023, Vol. 27, No. 85
Headlines
14 EAST WASHINGTON: Seeks to Hire Gardner Consulting as Appraiser
20205WY-01 LLC: Seeks to Hire Golden Goodrich as Legal Counsel
2202 EAST ANDERSON: Case Summary & Four Unsecured Creditors
34 SUMNER REALTY: Seeks to Hire Louis S Robin as Legal Counsel
AAC LENDER: New Mountain Marks $28.8M Loan at 29% Off
AL NGPL: S&P Affirms 'B+' Issuer Credit Rating, Outlook Stable
AMC NETWORKS: Ends Tender Offer After Failing to Get Loan
AMERICAN VIRTUAL: Unsecureds Will Get 90% to 95% in Plan
AMERICANAS: Creditors Want Billionaire Shareholders to Inject Money
AMR CORP: 2nd Circ. Affirms Loss of USAir Merger Challenge
AMSTERDAM HOUSE: Case Summary & 30 Largest Unsecured Creditors
AMSTERDAM HOUSE: Seeks $9MM DIP Loan from Corporate Member
ANACK TRANSPORTATION: Court OKs Interim Cash Collateral Access
ARTHROSCOPIC & LASER: Case Summary & 20 Top Unsecured Creditors
ASLM GAS: Case Summary & Eight Unsecured Creditors
ASLM INVESTMENTS: Case Summary & Seven Unsecured Creditors
ATLAS HEAVY ENGINE: Starts Subchapter V Bankruptcy Proceeding
AU HEALTH: Moody's Cuts Rating on Revenue Bond to B2, Outlook Neg.
AVAYA INC: Updates Prepackaged Plan Disclosures
BBB TANK: Main Street Marks $4M Loan at 48% Off
BED BATH & BEYOND: Didn't Pay Severance in Recent Closings
BOY SCOUTS: Abuse Survivors Object to Payout Trust Creation
BRIDGE COMMUNICATIONS: Case Summary & 20 Top Unsecured Creditors
BRIDGER STEEL: Seeks to Hire Anderson Sauther as Accountant
BRIDGEVIEW, IL: S&P Raises GO Debt Rating to 'BB', Outlook Stable
CA TECHIES: Case Summary & 10 Unsecured Creditors
CAMBER ENERGY: To Resume Merger Talks With Viking
CAMP DAVID: Case Summary & Eight Unsecured Creditors
CARVANA CO: S&P Lowers ICR to 'CC' on Distressed Debt Exchange
CASTLE BLACK: Files Emergency Bid to Use Cash Collateral
CBC RESTAURANT: Court OKs Cash Collateral Access Thru March 26
CELSIUS NETWORK: Creditors Oppose $3-Mil. Atty Fees Request
CHOATES G. CONTRACTING: Fine-Tunes Plan Documents
COIN CLOUD: Committee Hires McDonald Carano as Nevada Counsel
CORE SCIENTIFIC: U.S. Trustee Appoints Equity Committee
CRAWL SPACE: Unsecureds Will Get 14 Cents on Dollar in Plan
DIAMOND SPORTS: Streaming Rights Fight Emerges in Chapter 11
DIEBOLD NIXDORF: Raises Going Concern Doubt; Amendment Reached
DIOCESE OF ALBANY: US Trustee Uneasy of Diocese's Unsecured Assets
DIOCESE OF OAKLAND: May File for Bankruptcy Due to Abuse Claims
ENDO INT'L: FTC Asks DC Circuit Not to Prolong Monopoly with Impax
EVERGREEN PROPERTY: Voluntary Chapter 11 Case Summary
EXCL LOGISTICS: Court OKs Cash Collateral Access Thru April 11
FARR LABORATORIES: Voluntary Chapter 11 Case Summary
FIRST REPUBLIC BANK: $30-Bil. Rescue Money Fails to Calm Investors
FOREX INC: Gets Initial Order Under CCAA
FRANCO'S PAVING: Files Emergency Bid to Use Cash Collateral
FRASIER CONTRACTING: Taps CBIZ Forensic as Forensic Accountant
FRONTLINE MEDICAL: Unsecureds Will Get 13.9% of Claims in 5 Years
FTX GROUP: SBF Wants Insurance Coverage for Legal Costs
FTX TRADING: Had $7-Bil. Hole in Balance Sheet When It Filed Ch. 11
FTX TRADING: Paid SBF, Other Execs $3.2-Bil. Prepetition
GB SCIENCES: All Three Proposals Passed at Annual Meeting
GLOBAL MIXED: Court OKs Interim Cash Collateral Access
GRANDOTE INVESTMENTS: Case Summary & Seven Unsecured Creditors
HAIRY DEALINGS: Seeks to Hire Latham Luna Eden as Legal Counsel
HIGHLAND CARGO: Case Summary & 10 Unsecured Creditors
HOT'Z POWER: Court OKs Cash Collateral Access
HYSTER-YALE GROUP: Moody's Cuts CFR to B3 & Sr. Secured Debt to B2
IEH AUTO PARTS: Committee Taps FTI Consulting as Financial Advisor
IEH AUTO PARTS: Committee Taps Kane Russell Coleman as Counsel
INDEPENDENT PET: Committee Taps Kelley Drye as Lead Counsel
INDEPENDENT PET: Committee Taps Potter Anderson as Delaware Counsel
INDEPENDENT PET: Committee Taps Province LLC as Financial Advisor
INTEGRO PARENT: New Mountain Marks $11.5M Loan at 24% Off
INTERFACE SECURITY: Main Street Marks $7.3M Loan at 85% Off
INVACARE CORP: Committee Taps Jones Walker as Conflicts Counsel
INVACARE CORP: Committee Taps Kilpatrick Townsend as Counsel
INVACARE CORPORATION: Committee Taps Province as Financial Advisor
JBM SPECIALTIES: Case Summary & Seven Unsecured Creditors
JONATHAN RON: Case Summary & 14 Unsecured Creditors
KAMC HOLIDNGS: New Mountain Marks $18.7M Loan at 15% Off
KAMC HOLIDNGS: New Mountain Marks $18.7M Loan at 15% Off
KANSAS CITY RVS: Has Final OK on Cash Collateral Access
KCW GROUP: Files Emergency Bid to Use Cash Collateral
KJ TRADE: Seeks Cash Collateral Access
LAKE DISTRICT: Case Summary & 20 Largest Unsecured Creditors
LIFE BY ALICE: Seeks to Hire Rountree Leitman as Legal Counsel
LIFEHOPE EQUIPMENT: In Chapter 11 to Stop Foreclosure
LOYALTY VENTURES: Unsecured Claims Under $1.5M to Recover 100%
MADERA COMMUNITY: Court OKs Cash Collateral Access Thru March 31
MARINER HEALTH: Seeks to Extend Plan Exclusivity to July 16
MARKET FORCE: Steep Discount for Main Street's $26M Loan
MOBITEK LLC: Ranjit Thakor Says Plan is Neither Fair Nor Equitable
MOLDWORKS WORLDWIDE: Unsecureds to Split $314K in 6 Years
MONROE GARDENS: Unsecureds Will Get 100% of Claims in 60 Months
MORGAN TURF: Seeks to Extend Plan Exclusivity to March 29
MOUNTAIN PROVINCE: To Voluntarily Terminate SEC Reporting
NABIEKIM ENTERPRISES: Case Summary & 12 Unsecured Creditors
NATIONAL CINEMEDIA: Unpaid Debt Payment Grace Period Extended
NATIONAL RIFLE: Says Court Ignored NYAG's Animus
NEUROEM THERAPEUTICS: Taps Ideasphere Partners as Consultant
NEWCO LLC: Files for Chapter 11 to Stop Foreclosure
NIGHTMARE GRAPHICS: Files Emergency Bid to Use Cash Collateral
NORTH SHORE MANOR: Files for Chapter 11 Bankruptcy
NOSRAT LLC: Files for Chapter 11 Amid $8-Mil. Judgment
O'CONNOR CONSTRUCTION: Seeks Cash Collateral Access Thru July 31
OWENS & MINOR: Moody's Affirms Ba3 CFR, Alters Outlook to Negative
PETROLIA ENERGY: Posts $762,435 Net Loss in Third Quarter
PHOENIX HOLDINGS: Seeks to Extend Plan Exclusivity to June 19
PREMIER CAJUN KINGS: Commences Chapter 11 Bankruptcy Protection
PREMIER CAJUN: Bankruptcy Administrator Appoints Creditors Panel
QUORUM HEALTH: Community Health Avoids Part of Bankruptcy Suit
RLI SOLUTIONS: Exclusivity Period Extended to May 14
ROCK SPLITTERS: Wins Cash Collateral Access Thru April 13
RV DOCTOR: Seeks Cash Collateral Access
SC BEACH: Condominium Sale Proceeds to Fund Plan Payments
SERENITY HOMES: Case Summary & One Unsecured Creditor
SOLER & SOLER: Taps Kingcade and Leiderman Shelomith as Co-Counsel
SORRENTO THERAPEUTICS: Hires Latham & Watkins as Co-Counsel
SORRENTO THERAPEUTICS: Hires M3 Advisory as Financial Advisor
SORRENTO THERAPEUTICS: Shareholders Want Official Committee
STANADYNE LLC: Seeks to Hire Alvarez & Marsal as Financial Advisor
STANADYNE LLC: Seeks to Hire Angle Advisors as Investment Banker
STIMWAVE TECHNOLOGIES: Joint Liquidating Plan Confirmed by Judge
STOCKTON GOLF: Hires Sugarman & Company as Interest Rate Expert
STOCKTON GOLF: Seeks Approval to Hire Boss Deller as Accountant
STREAM TV: Seeks Bankruptcy Protection Prior to Asset Dispute Trial
STUBHUB HOLDCO: Moody's Affirms B3 CFR & Alters Outlook to Stable
TESSEMAE'S LLC: Hires B. Riley Securities as Investment Banker
TIMES SQUARE: $418-Million Debt Swap Plan Okayed
TMK HAWK: New Mountain Marks $15.8M Loan at 35% Off
TMK HAWK: New Mountain Marks $16.3M Loan at 35% Off
TRANSIT PHYSICAL: Court OKs Cash Collateral Access Thru April 12
TRIMED HEALTHCARE: Voluntary Chapter 11 Case Summary
TRIPLE D EXPRESS: Case Summary & Six Unsecured Creditors
US VIRGIN ISLANDS: Moody's Withdraws 'Caa3' Issuer Rating
VERISTAR LLC: Fine-Tunes Plan Documents
VITAL PHARMACEUTICALS: Ex-CEO Blocked from Using SocMed Accounts
VITAL PHARMACEUTICALS: Reaches Deal With Ex-CEO Over Tiktok Use
WAHOO FITNESS: Main Street Marks $14.6M Loan at 43% Off
WESTERN GLOBAL: Moody's Cuts CFR to Caa1, On Review for Downgrade
ZEROHOLDING LLC: Unsecureds to Split $129,600 over 16 Quarters
[^] BOND PRICING: For the Week from March 20 to 24, 2023
*********
14 EAST WASHINGTON: Seeks to Hire Gardner Consulting as Appraiser
-----------------------------------------------------------------
14 East Washington, LLC seeks approval from the U.S. Bankruptcy
Court for the Middle District of Florida to employ Gardner
Consulting Services to serve as its appraiser.
The firm will appraise the Debtor's property located at 14 East
Washington Street, Orlando, Florida 32801, parcel ID
26-22-29-7352-29043.
The firm will receive a flat fee of $6,500 for the appraisal.
As disclosed in court filings, Gardner Consulting is a
"disinterested person" within the meaning of Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Calvin E. Gardner, MAI
817 Greens Avenue
Winter Park, FL 32789
Phone: (407) 839-1021
Fax: (888) 789-1497
Email: calvin@gcappraisal.com
About 14 East Washington
14 East Washington, LLC owns in fee simple title an
office-mid-rise-commercial building located at 14 East Washington
St., Orlando, Fla., valued at $10.5 million.
14 East Washington sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. M.D. Fla. Case No. 22-03988) on Nov. 5,
2022, with $10,803,120 in total assets and $7,721,700 in total
liabilities. Antonio Luiz Romano, manager, signed the petition.
Judge Lori V. Vaughan oversees the case.
The Debtor tapped Nardella & Nardella, PLLC as bankruptcy counsel;
Commenda Real Estate, LLC as financial advisor; and Walsh Banks,
PLLC, doing business as Walsh Banks Law, as special counsel.
20205WY-01 LLC: Seeks to Hire Golden Goodrich as Legal Counsel
--------------------------------------------------------------
20205WY-01, LLC seeks approval from the U.S. Bankruptcy Court for
the Northern District of California to hire Golden Goodrich LLP as
its legal counsel.
The firm's services include:
1. advising the Debtor with respect to the requirements and
provisions of the Bankruptcy Code, Federal Rules of Bankruptcy
Procedure, Local Bankruptcy Rules, U.S. Trustee Guidelines, and
other applicable requirements which may affect the Debtor;
2. assisting the Debtor in preparing and filing schedules and
statement of financial affairs, complying with and fulfilling U.S.
Trustee requirements, and preparing other documents;
3. assisting the Debtor in negotiations with creditors and
other parties-in-interest;
4. assisting the Debtor in the preparation of a disclosure
statement and formulation of a Chapter 11 plan;
5. advising concerning the rights and remedies of the estate
and of the Debtor in connection with adversary proceedings, which
may be removed to, or initiated in, the bankruptcy court;
6. preparing legal papers;
7. representing the Debtor in any proceeding or hearing in the
bankruptcy court where the rights of the estate and the Debtor may
be litigated, or affected; and
8. providing other necessary legal services.
The firm will undertake representation of the Debtor at hourly
rates ranging from $250 to $750, depending on the experience and
expertise of the attorney or paralegal performing the work.
The firm's hourly rates are:
David M. Goodrich $650
Beth E. Gaschen $580
Sonja M. Hourany $450
As disclosed in court filings, Golden Goodrich is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
David M. Goodrich, Esq.
Sonja M. Hourany, Esq.
Golden Goodrich, LLP
650 Town Center Drive, Suite 600
Costa Mesa, CA 92626
Telephone 714-966-1000
Facsimile 714-966-1002
Email: dgoodrich@go2.law
shourany@go2.law
About 20205WY-01, LLC
20205WY-01, LLC 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.
20205WY-01, LLC filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. N.D. Cal. Case No.
24-40185) on Feb. 20, 2023. The petition was signed by Victoria
Haas as member. At the time of filing, the Debtor estimated
$1,600,065 in assets and $1,103,433 in liabilities.
David M. Goodrich, Esq. at GOLDEN GOODRICH LLP represents the
Debtor as counsel.
2202 EAST ANDERSON: Case Summary & Four Unsecured Creditors
-----------------------------------------------------------
Debtor: 2202 East Anderson Street, LLC
341 North Detroit Street
Los Angeles, CA 90036
Business Description: The Debtor is a Single Asset Real Estate
(as defined in 11 U.S.C. Section 101(51B)).
Chapter 11 Petition Date: March 23, 2023
Court: United States Bankruptcy Court
Central District of California
Case No.: 23-11695
Judge: Hon. Neil W. Bason
Debtor's Counsel: Stephen F. Biegenzahn, Esq.
LAW OFFICES OF STEPHEN F. BIEGENZAHN
2790 Kevin Ave., Unit 1227
Irvine, CA 92614
Tel: 213-925-7395
Email: steve@sfblaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Zion Vanounou as managing member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's four unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/63XCNJY/2202_East_Anderson_Street_LLC__cacbke-23-11695__0001.0.pdf?mcid=tGE4TAMA
34 SUMNER REALTY: Seeks to Hire Louis S Robin as Legal Counsel
--------------------------------------------------------------
34 Sumner Realty LLC seeks approval from the U.S. Bankruptcy Court
for the District of Massachusetts to hire the Law Offices of Louis
S Robin as its bankruptcy counsel.
The firm will render these services:
a. draft the Debtor's motions and orders concerning necessary
pleadings to continue its Chapter 11 Case;
b. counsel and assist the Debtor in the resolution of its
financial problems and the implementation of a Plan of
reorganization;
c. provide legal advice with respect to the powers and duties
of the Debtor in Possession in the continued operation of its
business;
d. prepare necessary motions, orders, complaints, answers,
notices, and other legal documents and pleadings; and
e. perform other related legal services for the Debtor.
The firm received a retainer in the amount of $7,500.
The firm will charge $325 per hour for its services.
Louis S Robin does not represent any interest adverse to the
Debtor's estate, according to court filings.
The firm can be reached through:
Louis S. Robin, Esq.
LAW OFFICES OF LOUIS S. ROBIN
1200 Converse Street
Longmeadow, MA 01106-1760
Tel: (413) 567-3131
Fax: (413) 565-3131
Email: louis.robin@prodigy.net
About 34 Sumner Realty LLC
34 Sumner Realty owns various condominium units, garage units,
retail unit, and storage unit, at 34 Sumner Avenue, Springfield,
MA, with an aggregate value of $4 million.
34 Sumner Realty LLC filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. D. Mass. Case No.
23-30073) on March 2, 2023. The petition was signed by Louis
Masaschi as manager. At the time of filing, the Debtor estimated
$4,000,000 in assets and $7,000,000 in liabilities. Louis S. Robin,
Esq. at the Law Offices of Louis S. Robin represents the Debtor as
counsel.
AAC LENDER: New Mountain Marks $28.8M Loan at 29% Off
-----------------------------------------------------
New Mountain Finance Corporation has marked its $28,829,000 loan
extended to AAC Lender Holdings, LLC to market at $20,599,000 or
71% of the outstanding amount, as of December 31, 2022, according
to a disclosure contained in New Mountain's Form 10-K for the
fiscal year ended December 31, 2022, filed with the Securities and
Exchange Commission on February 27, 2023.
New Mountain is a participant in a First lien Loan to AAC Lender
Holdings, LLC. The loan accrues interest at a rate of 10.38 %
(L(M)(42)+ 5.75%,Payment in Kind+0.50%)) per annum. The loan
matures in September 2026.
New Mountain is a Delaware corporation that was originally
incorporated on June 29, 2010 and completed its initial public
offering on May 19, 2011. New Mountain is a closed-end,
non-diversified management Investment Company that has elected to
be regulated as a business development company under the Investment
Company Act of 1940, as amended. New Mountain Finance Advisers BDC,
L.L.C., its Investment Adviser, is a wholly owned subsidiary of New
Mountain Capital Group, L.P. New Mountain Capital is a firm with a
track record of investing in the middle market. New Mountain
Capital focuses on investing in defensive growth companies across
its private equity, credit and net lease investment strategies.
AAC Lender Holdings, LLC is in the Education Industry. It is an
affiliate of American Achievement Corporation.
AL NGPL: S&P Affirms 'B+' Issuer Credit Rating, Outlook Stable
--------------------------------------------------------------
S&P Global Ratings affirmed its 'B+' issuer credit rating on AL
NGPL Holdings LCC (AL NGPL) and its 'B+' issue-level rating on its
term loan B ($387 million outstanding as of December 31, 2022) due
2028. S&P's '3' recovery rating on the term loan remains unchanged,
indicating its expectation for meaningful (50%-70%; rounded
estimate: 55%) recovery in the event of a payment default.
The stable outlook on AL NGPL reflects S&P's forecast for leverage
of 6.0x-6.2x, declining to about 6x by 2024, and EBITDA interest
coverage of about 2.3x in 2023.
S&P's 'B+' issuer credit rating on AL NGPL reflects the
differentiated credit quality between AL NGPL and NGPL Holdings
LLC. In March 2021, Arclight Capital Partners, through its holding
company AL NGPL, acquired a 25% ownership interest in NGPL Holdings
from Kinder Morgan Inc. and Brookfield Infrastructure Partners L.P.
NGPL Holdings is the ultimate parent of Natural Gas Pipeline Co. of
America.
S&P Global Ratings expects AL NGPL to continue to receive steady
cash distributions from NGPL Holdings to service its term loan due
2028. Further, S&P expects AL NGPL's leverage to be in the
6.0x-6.2x range and its EBITDA interest coverage to remain below
3.0x this year.
AL NGPL relies on distributions from NGPL Holdings to service its
term loan due 2028 as it does not have any other substantive
assets. AL NGPL rated under S&P Global noncontrolling equity
interest (NCEI) criteria. As such, S&P's view of the company's
credit profile is based on its financial ratios, NGPL Holdings'
cash flow stability, the company's ability to influence NGPL
Holdings' financial policy, as well as its ability to liquidate its
investment in NGPL Holdings to repay the term loan.
S&P said, "We expect the company to receive steady distributions
from NGPL Holdings over the life of the term loan. The significant
scale of the NGPL pipeline system supports its cash flows
generation. With a throughput volume of 5.3 billion cubic feet per
day (Bcf/d) and 60% market share in the Chicago area, we view the
NGPL pipeline as a critical component of U.S. energy
infrastructure. The pipeline has access to all major U.S. natural
gas basins, including the Permian and Appalachian. In addition, it
generates approximately 90% of revenues from take-or-pay contracts,
which increases the predictability of cash flows. The average
contract duration is about eight years. While investment-grade
customers account for 65% of the company's revenue, it derives the
remainder from lower-credit-quality companies that must post credit
enhancement, which partially mitigates its counterparty risk.
Therefore, we assess NGPL Holdings' cash flow stability as a
positive factor.
"We view AL NGPL's corporate governance and financial policy as
neutral which reflects its substantial governance rights over NGPL
Holdings. NGPL Holdings is required to distribute all of its cash
available to AL NGPL, Kinder Morgan, and Brookfield on a quarterly
basis. As such, we believe NGPL Holdings has an incentive to
maintain consistent or growing distributions. AL NGPL holds a
controlling vote with respect to any actions that require
supermajority approval and may influence the level of available
cash distributions. These actions include changes in NGPL's
distribution policy, its definition of available cash, the debt at
NGPL Holdings and its subsidiaries (including NGPL PipeCo LLC), as
well as asset sales and budget increases. The calculation of the
entity's available cash is determined by a majority vote.
"We expect AL NGPL's ratio of debt to EBITDA to be in the 6.0x-6.2x
range in 2023 before declining in 2024, supported by its 75% excess
cash sweep and distributions from NGPL HoldCo. At the same time, we
project its EBITDA interest coverage ratio to be around 2.3x in
2023 and 2.7x in 2024 due to the exposure to variable interest
rates through the unhedged portion of its debt. This leads us to
assess its financial metrics as negative. We also note that the
term loan B collateral package includes 25% of the $1 billion of
outstanding shareholder notes issued by MidCo LLC, a subsidiary of
NGPL Holdings, to Kinder Morgan, Brookfield, and Arclight.
"Our view of AL NGPL's ability to liquidate its investment in NGPL
Holdings is negative due to the company's private ownership
nature.
"The stable outlook on AL NGPL reflects our forecast for leverage
of 6.0x-6.2x and EBITDA interest coverage of about 2.3x in 2023. We
expect these credit metrics to improve in the following years as
the company receives steady distributions from NGPL Holdings and
sweeps excess cash against its term loan B.
"We could lower our rating on AL NGPL if NGPL Holdings' credit
quality deteriorated such that NGPL PipeCo's leverage exceeded
4.5x. This could occur due to prolonged increases in its operating
expenditure, inability to renew expiring contracts at competitive
rates, or a substantial increase in its debt to fund growth
projects. We could also consider taking a negative rating action if
AL NGPL's leverage deteriorates to 7.5x on a forward-looking
basis.
"We could consider taking a positive rating action on AL NGPL if
its EBITDA interest coverage ratio exceeds 3.0x and its debt to
EBITDA declines below 5.5x. We could also upgrade the company if we
raise our issuer credit rating on NGPL PipeCo. This could occur if
it achieves S&P Global Ratings-adjusted debt to EBITDA of less than
3.5x on a consistent basis.
"Environmental factors are a moderately negative consideration in
our credit rating analysis of AL NGPL Holdings LLC. AL NGPL holds a
25% noncontrolling interest in NGPL PipeCo, which primarily
comprises two FERC-regulated interconnected gas pipelines. The U.S.
currently derives about 35% of its power generation from natural
gas. However, NGPL PipeCo is susceptible to longer-term volume
declines from utilities because of reduced demand for hydrocarbons
and declining drilling activity amid the transition to renewable
energy sources."
AMC NETWORKS: Ends Tender Offer After Failing to Get Loan
---------------------------------------------------------
Jill R. Shah of Bloomberg News reports that AMC Networks Inc.
terminated a tender offer because it couldn't obtain a new term
loan to fund the purchase.
The entertainment company said in a Thursday, March 16, 2023, press
release that it wouldn't purchase any notes from the offer and
would return any that were already tendered. It originally launched
the tender to purchase as much as $800 million of its outstanding
5% senior notes due 2024 and 4.75% senior notes due 2025 in
February, led by Bank of America Corp.
New York-based AMC Networks tendered the notes on the condition
that it would fund the purchase, along with cash.
About AMC Networks Inc.
AMC Networks Inc. -- http://www.amcnetworks.com/-- is an American
entertainment company headquartered in 11 Penn Plaza, New York,
that owns and operates the cable channels AMC, IFC, We TV and
SundanceTV; the art house movie theater IFC Center in New York
City; the independent film companies IFC Films and RLJE Films; and
premium subscription streaming services Acorn TV, Allblk, Shudder
and Sundance Now.
AMERICAN VIRTUAL: Unsecureds Will Get 90% to 95% in Plan
--------------------------------------------------------
American Virtual Cloud Technologies, Inc., and its Debtor
Affiliates filed with the U.S. Bankruptcy Court for the District of
Delaware a Combined Disclosure Statement and Chapter 11 Plan of
Liquidation dated March 21, 2023.
The debtor holding company, AVCT (formerly, Pensare Acquisition
Corp. "Pensare"), was incorporated in Delaware on April 7, 2016, as
a blank-check acquisition company.
On April 7, 2020, Pensare consummated a business combination
transaction ("Computex Business Combination") in which Pensare
acquired Stratos Management Systems, Inc. ("Compute"), a private
operating company that does business as Computex Technology
Solutions. In connection with the closing of the Computex Business
Combination, the Debtors, together with certain non-Debtor
operating affiliates (collectively, the "Company") changed its name
to American Virtual Cloud Technologies, Inc.
The Debtors' principal place of business is Atlanta, Georgia,
though its employees are interspersed throughout the United States.
The Company also maintains a lab and related facilities in North
Carolina, a lab and related facilities in Ottawa and North
Carolina, a facility in Mexico City; and approximately 10 co
located data centers that are used as server locations. The Debtors
do not own any real property. The majority of the Debtors' business
operations are conducted through AVCT USA.
The Kandy platform is the primary source of the Debtors' income.
The Company derives its revenue from subscriptions to the Company's
cloud-based technology platform as well as revenue from the
Company's on-premise software. In addition, the Company receives a
portion of revenue for professional and managed services, which
includes services provided to the Company's customers to assist
them with the integration of the Company's products to their
network.
The value of the Debtor' business is keyed to its intellectual
property of the software, the knowhow of the employees and the
integrated approach of the software combined with the Company's
proprietary processes. Following the Petition Date, the Debtors
have continued the business as a going concern while undertaking
further marketing efforts which has been essential to be able to
realize the full value of the business.
The Chapter 11 Cases offered the Debtors the best opportunity to
increase creditors' recoveries and preserve jobs under the
circumstances. After considering the foregoing facts and
circumstances, the Debtors made the determination that an
expedited, in-court process was the best available alternative to
preserve and maximize the value of their business.
Following the filing of the Chapter 11 Cases, Northland and the
Debtors continued to market the Assets and investigate the
potential for a Sale. The Debtor ultimately identified three
qualified bidders who participated in the Auction. On March 7,
2023, the Debtor held the Auction and, following the Auction, filed
the Notice of Successful Bidder and Auction Results identifying
Skyvera, LLC as the successful bidder with a purchase price of
$6,780,062.00.
Class 3 consists of General Unsecured Claims. Except to the extent
that a Holder of an Allowed General Unsecured Claim agrees to a
less favorable or different treatment, each Holder of an Allowed
General Unsecured Claim shall receive, in full and final
satisfaction, compromise, settlement, and release, and in exchange
for such Allowed General Secured Claim, its Pro Rata Share of the
Net Distributable Proceeds (which shall be paid pari passu with the
AVCT Canada Employee Obligations). The Plan Administrator shall
make the Initial GUC Distribution Amount on the Initial GUC
Distribution Date. The remaining Distribution(s) shall be made
shall be made as soon as reasonably practicable after the Initial
GUC Distribution Date.
Class 3 is impaired by the Combined Disclosure Statement and Plan.
Holders of General Unsecured Claims are entitled to vote to accept
or reject the Combined Disclosure Statement and Plan. The allowed
unsecured claims total $6,100,000. This Class will receive a
distribution of 90% - 95% of their allowed claims.
Class 4 consists of Intercompany Claims. On the Effective Date, all
Intercompany Claims will be eliminated. Class 4 is impaired by the
Combined Disclosure Statement and Plan.
Class 5 consists of the AVCT Equity Interests. On the Effective
Date, Holders of AVCT Equity Interests in the Debtors will receive
no Distribution under the Combined Disclosure Statement and Plan,
and all AVCT Equity Interests will be cancelled; provided, however,
that, upon the Effective Date, the Plan Administrator shall be
deemed to hold one common share of stock in Post-Effective Date
Debtor AVCT solely for the benefit of Holders of Allowed Claims;
provided, further, that the Plan Administrator shall not be
entitled to receive any Distribution on account of such AVCT Equity
Interest.
Class 6 consists of the Intercompany Equity Interests. On the
Effective Date, all Intercompany Equity Interests shall be
Reinstated so as to maintain the organizational structure of the
Debtors as such structure exists on the Effective Date, unless the
Plan Administrator requires otherwise.
The Combined Disclosure Statement and Plan provides for the limited
substantive consolidation of the Debtors' Estates, but solely for
the purposes of this Combined Disclosure Statement and Plan,
including voting on this Combined Disclosure Statement and Plan by
the Holders of Claims and making any Distributions to Holders of
Allowed Claims.
Specifically, on the Effective Date, (i) all assets and liabilities
of the Debtors will, solely for voting and Distribution purposes,
be treated as if they were merged, (ii) each Claim against the
Debtors will be deemed a single Claim against and a single
obligation of the Debtors, (iii) any Claims Filed or to be filed in
the Chapter 11 Cases will be deemed single Claims against all of
the Debtors, (iv) all guarantees of any Debtor of the payment,
performance, or collection of obligations of any other Debtor shall
be eliminated and canceled, (v) all transfers, disbursements and
Distributions on account of Claims made by or on behalf of any of
the Debtors' Estates hereunder will be deemed to be made by or on
behalf of all of the Debtors' Estates, and (vi) any obligation of
the Debtors as to Claims will be deemed to be one obligation of all
of the Debtors.
Counsel to the Debtor:
Patrick J. Reilley, Esq.
Jack M. Dougherty, Esq.
Michael E. Fitzpatrick, Esq.
Cole Schotz P.C.
500 Delaware Avenue, Suite 1410
Wilmington, DE 19801
Telephone: (302) 652-3131
Facsimile: (302) 652-3117
Email: preilley@coleschotz.com
jdougherty@coleschotz.com
mfitzpatrick@coleschotz.com
-and-
Michael D. Sirota, Esq.
David M. Bass, Esq.
Court Plaza North
25 Main Street
Hackensack, NJ 07601
Telephone: 201-489-3000
Email: msirota@coleschotz.com
dbass@coleschotz.com
About American Virtual Cloud Technologies
American Virtual Cloud Technologies, Inc., and its affiliates offer
cloud-based business communication services to customers looking to
transition business-critical services, phone services and other
business applications to the cloud. Its "Kandy" product is one of
the largest pure-play providers of unified communications as a
service (UCaaS), communications platform as a service (CPaaS), and
Microsoft Teams Direct Routing as a Service (DRaaS) for blue-chip
enterprise customers such as AT&T, IBM/Kyndryl, and Etisalat.
American Virtual Cloud Technologies and affiliates AVCtechnologies
USA, Inc. and Kandy Communications, LLC sought Chapter 11
protection (Bankr. D. Del. Lead Case No. 23-10020) on Jan. 11,
2023. The Debtors disclosed $31,122,000 in total assets and
$13,641,000 in total debt as of Sept. 30, 2022.
Judge Mary F. Walrath oversees the cases.
The Debtors tapped Cole Schotz P.C. as legal counsel; SOLIC Capital
Advisors, LLC and SOLIC Capital, LLC as financial advisors; and
Northland Securities as investment banker. Kroll Restructuring
Administration, LLC is the claims and noticing agent and
administrative advisor.
The U.S. Trustee for Regions 3 and 9 appointed an official
committee to represent unsecured creditors in the Debtors' cases.
Saul Ewing, LLP and Dundon Advisers, LLC serve as the committee's
legal counsel and financial advisor, respectively.
AMERICANAS: Creditors Want Billionaire Shareholders to Inject Money
-------------------------------------------------------------------
Cristiane Lucchesi of Bloomberg News reports that Americanas SA
creditors, including some banks and bondholders, are willing to
close a deal with the distressed retailer's billionaire
shareholders if they agree to inject 12 billion reais ($2.3
billion) into the company, people familiar with the matter said.
Negotiations are advancing, as creditors consider whether to accept
a debt-to-equity swap proposed by Americanas, the people said,
asking not to be identified because discussions are private. The
billionaires -- Jorge Paulo Lemann, Carlos Sicupira and Marcel
Telles -- are the largest Americanas shareholders, and had offered
a payment of 10 billion reais. They declined to comment.
About Americanas SA
Americanas was one of the largest diversified retail chains in
Brazil, with a wide platform of physical stores, robust e-commerce,
fintech, and has just entered into the niche food retail. It is
listed on B3, being indirectly controlled by billionaire Jorge
Paulo Lemann, Carlos Alberto Sicupira and Marcel Telles.
The retailer nosedived in January 2023 after becoming mired in an
accounting scandal. The firm filed for bankruptcy at a court in
Rio de Janeiro on Jan. 19, 2023.
Americanas sought protection under Chapter 15 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 23-10092) on Jan. 25,
2023. White & Case LLP, led by John K. Cunningham, is the U.S.
counsel.
AMR CORP: 2nd Circ. Affirms Loss of USAir Merger Challenge
----------------------------------------------------------
A Second Circuit panel on March 20, 2023, declined a bid to revive
a long-running challenge to the 2013 tie-up between American
Airlines and US Airways that stemmed from American's bankruptcy,
saying that the courts moved beyond looking only at market shares
in mergers decades ago.
Plaintiffs -- a group of consumers and travel agents who challenged
the 2013 merger of American Airlines and US Airways on antitrust
grounds -- appeal from the district court's affirmance of the
orders of the bankruptcy court (Sean H. Lane, Bankruptcy Judge) (1)
denying after a bench trial Plaintiffs' claims for injunctive
relief under Sections 7 and 16 of the Clayton Act, 15 U.S.C. Secs.
18, 26; and (2) denying Plaintiffs' motions for leave to amend
their complaint to add a damages claim and jury demand pursuant to
Section 4 of the Clayton Act.
On appeal, Plaintiffs primarily contend that, in determining
whether the airline merger violated Section 7 of the Clayton Act,
the bankruptcy court legally erred by applying a burden-shifting
framework that treated Plaintiffs' assertion of post-merger market
share as prima-facie evidence of a Section 7 violation but
permitted Defendants to produce other evidence to show that the
merger would not in fact have anticompetitive effects. According
to Plaintiffs, the bankruptcy court was instead obliged by Supreme
Court precedent from the 1960s to treat post-merger market share as
virtually conclusive of a Section 7 violation.
The Second Circuit in a letter order ruled that the judgment of the
U.S. District Court for the Southern District of New York
(Katherine Polk Failla, Judge) is AFFIRMED.
"For substantially the same reasons contained in the district
court’s thorough and well-reasoned opinion, we reject Plaintiffs'
view of the relevant case law and conclude that the bankruptcy
court properly analyzed (and dismissed) Plaintiffs' claim
predicated on a Section 7 violation."
The Second Circuit held, "Given the robust case law in both our
Circuit and our sister circuits -- caselaw that is completely
consistent with the last word from the Supreme Court -- we cannot
say that the bankruptcy court committed legal error merely by
considering Defendants' rebuttal evidence showing why the
market-share data in fact gave an inaccurate account of the
merger's probable effects on competition. And because Plaintiffs
mount no other meaningful challenges, legal or factual, to the
bankruptcy court's burden-shifting analysis, we affirm the
bankruptcy court's Section 7 determination. Simply put, assertions
of enhanced market share and increased concentration "cannot
guarantee litigation victories." Baker Hughes, 908 F.2d at 992."
About American Airlines
AMR Corp. and its subsidiaries including American Airlines, the
third largest airline in the United States, filed for bankruptcy
protection (Bankr. S.D.N.Y. Lead Case No. 11-15463) in Manhattan on
Nov. 29, 2011, after failing to secure cost-cutting labor
agreements.
The Debtors tapped Weil, Gotshal & Manges LLP as bankruptcy
counsel; Paul Hastings LLP and Debevoise & Plimpton LLP Groom Law
Group, Chartered, as special counsel; Rothschild Inc., as financial
advisor; and Garden City Group Inc. as claims and notice agent.
The Official Committee of Unsecured Creditors retained Skadden,
Arps, Slate, Meagher & Flom LLP as counsel; Togut, Segal & Segal
LLP as co-counsel for conflicts and other matters; Moelis & Company
LLC as investment banker; and Mesirow Financial Consulting, LLC,
as
financial advisor.
AMR Corp., emerged from Chapter 11 bankruptcy protection on Dec. 9,
2013, upon which it merged with US Airways Group.
AMSTERDAM HOUSE: Case Summary & 30 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Amsterdam House Continuing Care Retirement Community, Inc.
300 E. Overlook
Port Washington NY 11050
Business Description: The Debtor owns and operates a continuing
care retirement community for the elderly.
Chapter 11 Petition Date: March 22, 2023
Court: United States Bankruptcy Court
Eastern District of New York
Case No.: 23-70989
Judge: Hon. Alan S. Trust
Debtor's Counsel: Gregory M. Juell, Esq.
DLA PIPER LLP (US)
1251 Avenue of the Americas
New York NY 10020
Tel: (212) 335-4500
Email: gregory.juell@us.dlapiper.com
Estimated Assets: $100 million to $500 million
Estimated Liabilities: $100 million to $500 million
The petition was signed by Brooke Navarre as president and CEO.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/SKOWUPA/Amsterdam_House_Continuing_Care__nyebke-23-70989__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Resident #00069-2023 Entrance Fee $1,364,633
[REDACTED] Liability
2. Resident #00070-2023 Entrance Fee $1,285,200
[REDACTED] Liability
3. Resident #00190-2023 Entrance Fee $1,248,615
[REDACTED] Liability
4. Resident #00309-2023 Entrance Fee $1,240,359
[REDACTED] Liability
5. Resident #00280-2023 Entrance Fee $1,133,482
[REDACTED] Liability
6. Resident #00212-2023 Entrance Fee $1,116,077
[REDACTED] Liability
7. Resident #00030-2023 Entrance Fee $1,079,094
[REDACTED Liability
8. Resident #00111-2023 Entrance Fee $1,075,613
[REDACTED] Liability
9. Resident #00242-2023 Entrance Fee $1,061,650
[REDACTED] Liability
10. Resident #00126-2023 Entrance Fee $1,023,779
[REDACTED] Liability
11. Resident #00314-2023 Entrance Fee $1,015,987
[REDACTED] Liability
12. Resident #00173-2023 Entrance Fee $1,003,666
[REDACTED] Liability
13. Resident #00141-2023 Entrance Fee $988,631
[REDACTED] Liability
14. Resident #00088-2023 Entrance Fee $950,300
[REDACTED] Liability
15. Resident #00258-2023 Entrance Fee $918,355
[REDACTED] Liability
16. Resident #00122-2023 Entrance Fee $904,370
[REDACTED] Liability
17. Resident #00145-2023 Entrance Fee $902,116
[REDACTED] Liability
18. Resident #00060-2023 Entrance Fee $895,281
[REDACTED] Liability
19. Resident #00220-2023 Entrance Fee $883,709
[REDACTED] Liability
20. Resident #00144-2023 Entrance Fee $878,138
[REDACTED] Liability
21. Resident #00179-2023 Entrance Fee $859,763
[REDACTED] Liability
22. Resident #00203-2023 Entrance Fee $853,906
[REDACTED] Liability
23. Resident #00034-2023 Entrance Fee $850,712
[REDACTED] Liability
24. Resident #00214-2023 Entrance Fee $845,720
[REDACTED] Liability
25. Resident #00200-2023 Entrance Fee $842,959
[REDACTED] Liability
26. Resident #00010-2023 Entrance Fee $840,735
[REDACTED] Liability
27. Resident #00036-2023 Entrance Fee $840,735
[REDACTED] Liability
28. Resident #00124-2023 Entrance Fee $840,224
[REDACTED] Liability
29. Resident #00211-2023 Entrance Fee $836,426
[REDACTED] Liability
30. Resident 00223-2023 Entrance Fee $835,808
[REDACTED] Liability
AMSTERDAM HOUSE: Seeks $9MM DIP Loan from Corporate Member
----------------------------------------------------------
Amsterdam House Continuing Care Retirement Community, Inc. asks the
U.S. Bankruptcy Court for the Eastern District of New York for
authority to use cash collateral and obtain secured non-priming
postpetition financing.
The Debtor's sole corporate member, Amsterdam Continuing Care
Health System, Inc., has agreed to provide postpetition financing
of up to $9 million in accordance with the DIP Term Sheet in
exchange for a release of its obligations under the Liquidity
Support Agreement, among other things.
The Debtor explains it needs the money to administer the Chapter 11
Case and pay necessary operation and maintenance costs associated
with The Harborside.
The Debtor is required under the DIP Loan to comply with these
milestones:
(a) The Debtor will commence a chapter 11 case in the United
States Bankruptcy Court for the Eastern District of New York or
before March 22, 2023;
(b) The Court will have entered the Interim Order, in a form
and substance acceptable to DIP Lender in its sole discretion, no
later than five days after the Petition Date;
(c) The Court will have entered the Final Order, in form and
substance acceptable to DIP Lender in its sole discretion, no later
than 30 days after the Petition Date;
(d) Any auction of the Debtor's assets and determination of
the proposed successful bidder for such assets will be completed by
no later than June 30, 2023;
(e) The Debtor will file a Chapter 11 Plan, in form and
substance acceptable to DIP Lender in its sole discretion, no later
than August 1, 2023;
(f) The Court will have entered an order confirming such
Acceptable Plan no later than October 1, 2023; and
(g) The effective date of an Acceptable Plan will have
occurred by no later than November 30, 2023.
The DIP Facility matures through the earlier of (i) November 30,
2023 or (ii) the occurrence of an Event of Default.
The Events of Default includes:
(i) Any claim or cause of action is asserted against any DIP
Lender Protected Parties related to the LSA or by the Debtor;
(ii) The Debtor's continuing care retirement community
currently known as The Harborside will cease operation as a
continuing care retirement community;
(iii) The Debtor will fail to comply with any of the Milestones;
(iv) The Debtor will use any proceeds of the DIP Financing for
items not reflected in the Approved Budget; and
(v) The total of the Debtor's expenditures after the Petition
Date during any rolling two-week period exceeds the total Projected
Expenditures for the same period under the Approved Budget by more
than 10%.
The Debtor relies on revenue generated by existing and new
Residents of its The Harborside senior living community, to among
other things, maintain its day-to-day operations, service its debt
obligations, and honor its Resident refund obligations. However,
the Debtor has struggled to attract new Residents at the budgeted
pace due in part to a negative stigma resulting from its prior
bankruptcy filings in 2014 and 2021.
This has caused a shortfall in liquidity, which has been
exacerbated by an occupancy decline resulting from the continuing
effect of COVID-19 on the ability to attract new Residents. To
address these challenges, the Debtor and its advisors undertook an
extensive prepetition marketing process to seek a potential buyer
of the Debtor's assets, while simultaneously engaging in
discussions with the Debtor's major stakeholders, including the
Member and bondholders.
This marketing process was successful and the Debtor has identified
New England Life Plan Communities Corp. as a potential stalking
horse, pursuant to which the Plan Sponsor is prepared to be filed
by the Debtor in the Chapter 11 Case. The Proposed Plan will
provide for either (i) the Plan Sponsor to acquire the sole
corporate member interest in the reorganized Debtor or,
alternatively, substantially all of the Debtor's assets pursuant to
a sale under the Proposed Plan and/or sections 363 and 365 of the
Bankruptcy Code, subject to an auction process and bidding
procedures or (ii) the Plan Sponsor to acquire the sole corporate
member interest in the Debtor and all of the Series 2021 Bonds.
The Plan Sponsor intends to continue operating The Harborside as a
best-in-class senior living community, assume all residency
agreements of the, and fund state-required, operating, debt service
and capital expenditure reserves.
UMB Bank, N.A. asserts an interest in the Debtor's cash
collateral.
Solely to the extent that the Debtor is permitted to use the cash
collateral, the UMB will be granted customary superpriority claims
that are senior to the DIP Superpriority Claims to the extent of
any diminution in value of the cash collateral.
The adequate protection, under the Interim Order, will include,
without limitation: (i) the Replacement Liens; and (ii) the
Adequate Protection Superpriority Claim.
A copy of the motion is available at https://bit.ly/3KaE3vF from
PacerMonitor.com.
About Amsterdam House Continuing Care
Amsterdam House Continuing Care Retirement Community, Inc., doing
business as The Amsterdam at Harborside, operates Nassau County's
first and only continuing care retirement community licensed under
Article 46 of the New York Public Health Law, which provides
residents with independent living units, enriched housing and
memory support services, comprehensive licensed skilled nursing
care, and related health, social, and quality of life programs and
services.
Amsterdam House Continuing Care Retirement Community filed a
voluntary petition for relief under Chapter 11 of the Bankruptcy
Code (Bankr. E.D.N.Y. Case No. 23-70989) on March 22, 2023.
In the petition signed by Brooke Navarre, president and chief
executive, officer, the Debtor disclosed up to $500 million in both
assets and liabilities.
Gregory M. Juell, Esq., at DLA Piper LLP (US), represents the
Debtor as legal counsel.
ANACK TRANSPORTATION: Court OKs Interim Cash Collateral Access
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Tennessee,
Northeastern Division at Greeneville, authorized Anack
Transportation, Inc. to continue using cash collateral on an
interim basis in accordance.
The Debtor requires immediate use of cash collateral to continue
its business operations without interruption, and avoid immediate
and irreparable harm to the estate pending a final hearing.
The U.S. Small Business Association, the Internal Revenue Service,
Vivian Capital Group LLC, and Liberty Capital Management have been
identified as asserting a lien on the Debtor's cash collateral.
As adequate protection, the SBA, the IRS, Vivian Capital and
Liberty Capital will have a perfected post-petition lien against
cash collateral to the same extent and with the same validity and
priority as their respective prepetition lien, without the need to
file or execute any documents as may otherwise be required under
applicable non-bankruptcy law.
A copy of the Court's order and the Debtor's budget is available at
https://bit.ly/3Zjs17t from PacerMonitor.com.
The Debtor projects $151,484 in total operating revenue and
$124,731 in total operating expenses.
About Anack Transportation, Inc.
Anack Transportation, Inc. is a provider of trucking services.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Tenn. Case No. 23-50158) on February
17, 2023. In the petition signed by Steven J. Hafen, president, the
Debtor disclosed $786,000 in total assets and $1,322,597 in total
liabilities.
Judge Rachel Ralston Mancl oversees the case.
Charles Parks Pope, Esq., at the Pope Firm, PC, represents the
Debtor as legal counsel.
ARTHROSCOPIC & LASER: Case Summary & 20 Top Unsecured Creditors
---------------------------------------------------------------
Debtor: Arthroscopic & Laser Surgery Center of San Diego, L.P.
d/b/a Oasis Surgery Center
5471 Kearny Villa Rd. Suite 100
San Diego, CA 92123
Business Description: The Debtor operates an outpatient care
center.
Chapter 11 Petition Date: March 24, 2023
Court: United States Bankruptcy Court
Southern District of California
Case No.: 23-00778
Judge: Hon. Laura S. Taylor
Debtor's Counsel: Ahren A. Tiller, Esq.
BANKRUPTCY LAW CENTER
1230 Columbia St., Suite 1100
San Diego, CA 92101
Tel: 619-894-8831
Fax: 866-444-7026
Total Assets: $471,349
Total Liabilities: $3,234,976
The petition was signed by Laura Harding as secretary, Saratoga
Surgery Center Group, Inc.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/LI7ZE5A/Arthroscopic__Laser_Surgery_Center__casbke-23-00778__0001.0.pdf?mcid=tGE4TAMA
ASLM GAS: Case Summary & Eight Unsecured Creditors
--------------------------------------------------
Debtor: ASLM Gas Inc.
d/b/a Aten Gas
11237 Parkmead Street
Santa Fe Springs, CA 90670
Chapter 11 Petition Date: March 24, 2023
Court: United States Bankruptcy Court
Central District of California
Case No.: 23-11779
Judge: Hon. Julia W. Brand
Debtor's Counsel: Michael Jay Berger, Esq.
LAW OFFICES OF MICHAEL JAY BERGER
9454 Wilshire Boulevard, 6th Floor
Beverly Hills, CA 90212
Tel: (310) 271-6223
Fax: (310) 271-9805
Email: michael.berger@bankruptcypower.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Mandeep Singh as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's eight unsecured creditors is available for
free at PacerMonitor.com at:
https://www.pacermonitor.com/view/BJXOK6Q/ASLM_Gas_Inc__cacbke-23-11779__0001.0.pdf?mcid=tGE4TAMA
ASLM INVESTMENTS: Case Summary & Seven Unsecured Creditors
----------------------------------------------------------
Debtor: ASLM Investments Inc.
11237 Parkmead Street
Santa Fe Springs, CA 90670
Chapter 11 Petition Date: March 24, 2023
Court: United States Bankruptcy Court
Central District of California
Case No.: 23-11778
Judge: Hon. Barry Russell
Debtor's Counsel: Michael Jay Berger, Esq.
LAW OFFICES OF MICHAEL JAY BERGER
9454 Wilshire Boulevard, 6th Floor
Beverly Hills, CA 90212
Tel: (310) 271-6223
Fax: (310) 271-9805
Email: michael.berger@bankruptcypower.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Mandeep Singh as president.
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/BEZITBY/ASLM_Investments_Inc__cacbke-23-11778__0001.0.pdf?mcid=tGE4TAMA
ATLAS HEAVY ENGINE: Starts Subchapter V Bankruptcy Proceeding
-------------------------------------------------------------
Atlas Heavy Engine Co. filed for chapter 11 protection in the
Western District of Michigan. The Debtor elected on its voluntary
petition to proceed under Subchapter V of chapter 11 of the
Bankruptcy Code.
Atlas is engaged in the refurbishing and sale of used and
remanufactured diesel engines and parts. Its headquarters and
45,000-foot warehouse are located at 1515 N. Old US Hwy 31, Niles,
Michigan 49120.
Quality Truck Parts, doing business as Worldwide Diesel, was
originally incorporated by Gregory Ferrier. In October 2021,
Richard J. Campbell and his wife Erin Campbell, through Atlas,
purchased QUality Truck Parts' assets for $3,825,000 plus
additional funds for closing costs. The sale and initial operating
costs were financed through (i) a loan from Huntington National
Bank, backed by the Small Business Administration, for $3,392,000;
(ii) seller financing from QUality Truck Parts through two notes
with aggregate initial advances of $390,000; and (iii) capital
contributions from Rich and Erin of $210,000.
But substantial unanticipated warranty claims and supply chain
shortages resulted in increased business and reduced revenue. The
reduction in new diesel engines and parts resulted in a corollary
reduction in available used engines and parts as companies hoarded
their used engines and parts for their own fleets.
The reduction in available used diesel engines and parts
substantially reduced Atlas' inventory and sales, which resulted in
Atlas being unable to service its debt.
In an effort to increase inventory, Rich and Erin purchased 2nd
Chance Diesel, a quality machine shop in Kearney, Missouri,
specializing in rebuilding diesel engines, to rebuild engines and
parts for Atlas to sell. Unfortunately, acquiring 2nd Chance was
insufficient to cover inventory shortages, increased expenses and
reduced revenue that Atlas' operating model was premised upon.
Without being able to obtain ample inventory to generate sufficient
revenue to satisfy its operational expenses, Atlas defaulted under
its monthly debt service obligations to HNB.
The Debtor believes that easing supply chain shortages combined
with reducing its debt service obligations through a "cramdown" of
the loans to HNB and QUality Truck Parts will result in a
sustainable and profitable business model.
About Atlas Heavy Engine Co.
Atlas Heavy Engine Co. provides diesel engines and diesel engine
parts.
Atlas Heavy Engine Co. filed a petition for relief under Subchapter
V of Chapter 11 of the Bankruptcy Code (Bankr. W.D. Mich. Case No.
23-00530) on March 14, 2023.
In the petition filed by Richard J. Campbell as president/member,
the Debtor reported assets and liabilities between $1 million and
$10 million. The petition states that funds will be available to
unsecured creditors.
Scott A. Chernich has been appointed as Subchapter V trustee.
The case is overseen by Honorable Bankruptcy Judge Scott W. Dales.
The Debtor is represented by:
Steven Mark Bylenga, Esq.
CBH ATTORNEYS & COUNSELORS, PLLC
Main Office
25 Division Avenue S., Suite 500
Grand Rapids, MI 49503
Tel: 616-608-3061
Fax: 616-719-3782
Email: nikki@chasebylenga.com
AU HEALTH: Moody's Cuts Rating on Revenue Bond to B2, Outlook Neg.
------------------------------------------------------------------
Moody's Investors Service has downgraded AU Health System, Inc.'s
(GA) (AUHS) revenue bond to B2 from Ba3. The outlook is negative.
AU Health had approximately $327 million of debt outstanding as of
fiscal 2022.
RATINGS RATIONALE
The downgrade to B2 reflects continued negative operating cash flow
and material decline in cash reserves since Moody's August 2022
review, which significantly elevates the risk of a covenant breach
at June 30, 2023. Inability to clear covenants at June 30 could
result in an event of default which could lead to immediate
acceleration absent an amendment or waiver. In this event, Moody's
estimation is that recovery would be below 100% given material cash
decline through year-to-date fiscal 2023. Ongoing expense pressures
will make it challenging to quickly reverse operating cash flow
losses and stem cash burn. Additionally, funding sources for AUHS's
new hospital construction have not yet been solidified, although
construction is set to begin by June 1, 2023 and the project has an
estimated completion date of 2025. While Moody's are not
incorporating additional debt or the use of cash flow for the
project in the rating at this time; the impact of this project on
AUHS's credit quality could pressure credit quality further,
without external funding support.
The B2 acknowledges the hospital's ongoing efforts to diminish
acceleration risk, including initiatives to reduce reliance on
temporary staffing and length of stay, as well as its evolving
relationship with WellStar Health System, and essentiality for the
state and its university partner. AUHS has a competitive advantage
as an essential safety net provider and the academic medical center
for the Medical College of Georgia, the only public medical school
in the state. Also favorably incorporated is the system's
distinctly leading position for pediatric services and full-service
array with an exclusive Level I trauma center designation, as the
only freestanding children's hospital in the market.
On December 27, 2022, AU Health System, Inc. signed a letter of
intent with Georgia-based WellStar Health System to join WellStar
Health System. This transaction is not incorporated into the rating
assessment at this time. However, if finalized, it could have
positive credit implications. Per AU Health System, Inc.
management, while the WellStar partnership is pending, Moody's will
not receive additional information outside of publicly available
information posted on EMMA to incorporate in Moody's analysis.
RATING OUTLOOK
The negative outlook reflects the potential that weak cashflow
could be prolonged and contribute to a further decline of an
already very weak liquidity position. Failure to materially improve
performance or meet fiscal 2023 yearend covenants will pressure the
rating further.
FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATING
-- Successful execution of strategic partnership as a full member
-- Materially improved and sustained operating performance,
which allows for increased liquidity and headroom to covenants
FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATING
-- Increased risk of debt acceleration
-- Failure to stem cash declines
-- Inability to significantly improve operating cash flow and
meet fiscal 2023 year-end covenants
-- An increase in debt or debt-like obligations
-- In ability to secure strategic partnership
LEGAL SECURITY
Debt is secured by a gross revenue pledge of the obligated group
and an interest in AU Medical Center's leasehold improvements in
hospital facilities. The obligated group includes AU Health System,
Inc., AU Medical Center, Inc. (AUMC), AU Medical Associates, Inc.
(AUMA) and Roosevelt Warm Springs Rehabilitation and Specialty
Hospitals, Inc. (RWSH). The only covenant per the Master Trust
Indenture is a 1.10 times debt service coverage ratio measured
annually. Remedies include consultant call if below 1.10 times
coverage and an Event of Default if below 1.0 times for two
consecutive years. The outstanding debt is not an obligation of
Augusta University nor the Board of Regents.
AUHS did not meet the debt service coverage ratio in fiscal 2022.
Failure to meet the debt service coverage ratio in fiscal 2023 will
result in an event of default without a forbearance agreement from
a majority of bondholders.
PROFILE
AU Health System, Inc. (AUHS, f/k/a AU Medical Center, Inc.) is
comprised of a 478-bed adult hospital and 154-bed children's
hospital located in Augusta, GA. AUHS serves as the academic
medical center for the Medical College of Georgia, the only public
medical school in the state. AU Health System, Inc. is the sole
corporate member of Roosevelt Warm Springs Rehabilitation &
Specialty Hospitals, Inc. (RWSH) and AU Medical Associates, Inc.
(AUMA), the physician faculty practice plan, and is a component
unit of the Board of Regents of the University System of Georgia.
METHODOLOGY
The principal methodology used in this rating was Not-For-Profit
Healthcare published in December 2018.
AVAYA INC: Updates Prepackaged Plan Disclosures
-----------------------------------------------
Avaya Inc., and its Debtor Affiliates submitted Technical
Modification to Joint Prepackaged Plan of Reorganization and
Disclosure Statement dated March 21, 2023.
The Debtors propose this Plan for the resolution of the outstanding
Claims against and Interests in the Debtors pursuant to chapter 11
of the Bankruptcy Code.
On or as soon as reasonably practicable after the Effective Date
each Settlement Group Releasing Party, shall receive its pro rata
share of the HoldCo Convertible Notes Settlement Consideration,
provided, however, that any Person or Entity that fails to meet the
requirements to be a Settlement Group Releasing Party shall not be
entitled to receive any HoldCo Convertible Notes Settlement
Consideration.
The Modified Joint Plan does not alter the proposed treatment for
unsecured creditors and the equity holder:
* Class 6 consists of Non-HoldCo General Unsecured Claims.
Each Holder of an Allowed Non-HoldCo General Unsecured Claim shall
receive, in full and final satisfaction of such Claim, either: (i)
Reinstatement of such Allowed Non-HoldCo General Unsecured Claim
pursuant to section 1124 of the Bankruptcy Code; or (ii) payment in
full in Cash on (A) the Effective Date or (B) the date due in the
ordinary course of business in accordance with the terms and
conditions of the particular transaction giving rise to such
Allowed Non-HoldCo General Unsecured Claim.
* Class 8 consists of HoldCo General Unsecured Claims. On the
Effective Date, all HoldCo General Unsecured Claims will be
cancelled, released, discharged, and extinguished and will be of no
further force or effect, and Holders of HoldCo General Unsecured
Claims will not receive any distribution on account of such HoldCo
General Unsecured Claims.
* Class 11 consists of all Intercompany Interests. On the
Effective Date, Intercompany Interests shall, at the election of
the applicable Debtor (with the consent of the Required Consenting
Stakeholders, which consent shall not be unreasonably withheld), be
(i) Reinstated or (ii) set off, settled, addressed, distributed,
contributed, merged, canceled, or released, in each case, in
accordance with the Description of Transaction Steps.
* Class 12 consists of all Existing Avaya Interests. On the
Effective Date, all Existing Avaya Interests will be cancelled,
released, and extinguished and will be of no further force and
effect, and Holders of Existing Avaya Interests will not receive
any distribution on account thereof.
The Debtors shall fund distributions under the Plan, as applicable,
with: (1) the proceeds from the Exit Facilities, (2) proceeds from
the Rights Offering, (3) the New Equity Interests, and (4) the
Debtors' Cash on hand. Each distribution and issuance referred to
in Article VI of the Plan shall be governed by the terms and
conditions set forth in the Plan applicable to such distribution or
issuance and by the terms and conditions of the instruments or
other documents evidencing or relating to such distribution or
issuance, which terms and conditions shall bind each Entity
receiving such distribution or issuance. The issuance,
distribution, or authorization, as applicable, of certain
Securities in connection with the Plan, including the New Equity
Interests will be exempt from SEC registration.
"Collective Bargaining Agreements" means, collectively, (a) that
certain agreement, dated May 24, 2009, between the Business Groups
of Avaya Inc. and the Communications Workers of America, as
amended, including by way of modification and extension agreements
between Avaya Inc. and the Communications Workers of America
executed on June 7, 2014, June 13, 2016, June 14, 2018, September
21, 2019, and December 30, 2020, and (b) that certain agreement,
dated May 24, 2009, between Avaya Inc. and the International
Brotherhood of Electrical Workers, as amended, including by way of
modification and extension agreements between Avaya Inc. and the
International Brotherhood of Electrical Workers executed on June 7,
2014, June 13, 2016, June 14, 2018, September 21, 2019, and
February 26, 2021.
"Covered Claims" means any Claim or Cause of Action related to any
act or omission in connection with, relating to, or arising out of,
the Chapter 11 Cases, the formulation, preparation, dissemination,
negotiation, or filing of the RSA and related prepetition
transactions, the DIP Facilities, the Rights Offering, the
Disclosure Statement, the Plan, the Plan Supplement, or any
Restructuring Transaction, contract, instrument, release, or other
agreement or document created or entered into in connection with
the RSA, the DIP Facilities, the Rights Offering, the Disclosure
Statement, the Plan, the Plan Supplement, the Chapter 11 Cases, the
Filing of the Chapter 11 Cases, the DIP Documents, the DIP Orders,
the RO Documents, the solicitation of votes on the Plan, the
prepetition negotiation and settlement of claims, the pursuit of
Confirmation, the pursuit of consummation, the administration and
implementation of the Plan, or the distribution of property under
the Plan or any other related agreement, or upon any other related
act or omission, transaction, agreement, event, or other occurrence
taking place prior to the Effective Date.
"Covered Party" means, with respect to the Debtors, each Debtor
Related Party of each Debtor, including, for the avoidance of
doubt, each such Entity's financial advisors, partners, attorneys,
accountants, investment bankers, consultants, and other
professionals, each in their capacity as such.
A full-text copy of the Technically Modified Joint Plan dated March
21, 2023 is available at https://bit.ly/3K863jt from
PacerMonitor.com at no charge.
About Avaya
Morristown, New Jersey-based Avaya offers digital communications
products, solutions and services for businesses of all sizes.
Avaya delivers its technology predominantly through software and
services, both on-premise and through the cloud in a diverse range
of industries, including financial services, manufacturing, retail,
transportation, energy, media and communications, healthcare,
education, and government.
Avaya Inc. and 17 affiliates first sought Chapter 11 protection
(Bankr. S.D.N.Y. Lead Case No. 17-10089) on Jan. 19, 2017. The
2017 debtors emerged from bankruptcy and their second amended joint
Chapter 11 plan of reorganization was declared effective on Dec.
15, 2017. The 2017 Plan provides holders of first-lien debt with
90.5% of stock in the reorganized company and holders of
second-lien notes with a pro rata share of 4% of stock and warrants
for an additional 5.1% of the shares. Avaya projected to have
$2.925 billion of funded debt and a $300 million senior secured
asset-based lending facility available following emergence.
Avaya, Inc., and 20 affiliated entities, including Avaya Holdings
Corp., filed for Chapter 11 bankruptcy protection (Bankr. S.D. Tex.
Lead Case No. 23-90088) on February 14, 2023.
The Hon. David R. Jones oversees the cases.
The 2023 petitions were signed by Eric Koza as chief restructuring
officer. The Debtors estimated $1 billion to $10 billion in both
assets and liabilities on a consolidated basis.
Avaya Holdings' most recent financial report filed with the
Securities and Exchange Commission was for the three-month period
end March 31, 2022. In its Form 10-Q report, Holdings disclosed
$5.8 billion in total consolidated assets against $5.2 billion in
total consolidated liabilities.
In the 2023 bankruptcy filing, the Debtors have retained Kirkland &
Ellis LLP and Jackson Walker LLP as bankruptcy co-counsel; Evercore
Group LLC as investment banker; AlixPartners LLP as restructuring
advisor; PricewaterhouseCooopers LLP as auditor; and Kurtzman
Carson Consultants LLC as claims and noticing agent.
Counsel to Wilmington Savings Fund Society, FSB, as administrative
agent and collateral agent under the DIP Term Loan is Ropes & Gray
LLP.
A group of lenders are represented by Akin Gump Strauss Hauer &
Feld LLP, Centerview Partners LP and Alvarez & Marsal North
America, LLC. Counsel to the Akin Ad Hoc Group.
A group of lenders are represented by Paul, Weiss, Rifkind, Wharton
& Garrison LLP, Glenn Agre Bergman & Fuentes LLP, and FTI
Consulting, Inc. Counsel to the PW Ad Hoc Group.
Counsel to Goldman Sachs Bank USA, as administrative agent and
collateral agent under the Prepetition Term Loan, is Davis Polk &
Wardwell LLP.
BBB TANK: Main Street Marks $4M Loan at 48% Off
-----------------------------------------------
Main Street Capital Corporation has marked its $4,000,000 loan
extended to BBB Tank Services, LLC to market at $2,086,000 or 52%
of the outstanding amount, as of December 31, 2022, according to a
disclosure contained in Main Street's Form 10-K for the fiscal year
ended December 31, 2022, filed with the Securities and Exchange
Commission on February 24, 2023.
Main Street is a participant in an Unsecured Debt to BBB Tank
Services, LLC. The loan accrues interest at a rate of 15.12%
(L+11%) per annum. The loan was scheduled to mature April 8, 2021.
Main Street said the maturity date is under on-going negotiations
with the portfolio company and other lenders, if applicable.
Main Street is a principal investment firm primarily focused on
providing customized debt and equity financing to lower middle
market companies and debt capital to middle market companies.
BBB Tank Services is an above-ground storage tank company in Texas.
BED BATH & BEYOND: Didn't Pay Severance in Recent Closings
----------------------------------------------------------
Jeannette Neumann of Bloomberg News reports that Bed Bath & Beyond
Inc. isn’t paying severance to employees at stores across the US
that it has recently said will close, according to current and
former staff members, a sign the retailer is trying to save cash to
stabilize its floundering business.
Bed Bath & Beyond executives told staffers around early February
that they are rolling out an additional round of store closings and
informed workers at those locations that they wouldn't receive
severance, according to internal correspondence and documents seen
by Bloomberg News, along with the current and former employees.
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.
BOY SCOUTS: Abuse Survivors Object to Payout Trust Creation
-----------------------------------------------------------
Evan Ochsner of Bloomberg Law reports that abuse claimants of the
Boy Scouts of America urged a bankruptcy court to deny the
organization's request to spend up to $4 million to set up a
settlement trust to pay victims, arguing that the trust may not
even be valid later.
The bankrupt organization is seeking the US Bankruptcy Court for
the District of Delaware's approval to spend the money for the
trust that was part of its court-approved Chapter 11 plan. But
some sex abuse victims and BSA's insurers are appealing the
bankruptcy court's plan approval.
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.
BRIDGE COMMUNICATIONS: Case Summary & 20 Top Unsecured Creditors
----------------------------------------------------------------
Debtor: Bridge Communications LLC
7501 Dunquin Ct.
Clifton, VA 20124
Business Description: The Debtor is a video production and
communications company.
Chapter 11 Petition Date: March 23, 2023
Court: United States Bankruptcy Court
Eastern District of Virginia
Case No.: 23-10467
Debtor's Counsel: Ashvin Pandurangi, Esq.
VIVONA PANDURANGI, PLC
211 Park Ave.
Falls Church, VA 22046
Tel: 571-969-6540
Fax: 571-969-6540
Email: ashvinp@vpbklaw.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Edward Tropeano as owner.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/5FHODNI/Bridge_Communications_LLC__vaebke-23-10467__0001.0.pdf?mcid=tGE4TAMA
BRIDGER STEEL: Seeks to Hire Anderson Sauther as Accountant
-----------------------------------------------------------
Bridger Steel Inc. seeks approval from the U.S. Bankruptcy Court
for the District of Montana to hire Zane Holbrook, CPA and
Anderson, Sauther, Hamilton & Co., LLC as its accountant.
The firm will prepare the Debtor's income tax returns, income tax
consulting and other agreed upon procedures.
The firm will be paid at these rates:
Jerry Sauther, CPA $300 per hour
Zane Holbrook, CPA $300 per hour
Connor Lebsock, CPA $175 per hour
Anderson, Sauther, Hamilton & Co. does not represent any interest
adverse to the Debtor's estate, according to court filings.
The firm can be reached through:
Zane Holbrook, CPA
Anderson, Sauther, Hamilton & Co., LLC
2707 St Johns Ave
Billings, MT 59102
Phone: +1 406-656-5350
Email: zholdbrook@accountants-ashcpas.com
About Bridger Steel
Bridger Steel Inc. --
https://www.bridgersteel.com/about/bridger-steel -- is a
manufacturer of metal panel systems for roofing, siding & wall,
interior, and fencing applications.
Bridger Steel Inc. filed a petition for relief under Chapter 11 of
the Bankruptcy Code (Bankr. D. Mon. Case No. 23-20019) on February
25, 2023. In the petition filed by Dennis L. Johnson, as president,
the Debtor reported assets between $1 million and $10 million and
liabilities between $10 million and $50 million.
The Honorable Bankruptcy Judge Benjamin P. Hursh oversees the
case.
The Debtor is represented by James A. Patten, Esq. at PATTEN
PETERMAN BEKKEDAHL & GREEN.
BRIDGEVIEW, IL: S&P Raises GO Debt Rating to 'BB', Outlook Stable
-----------------------------------------------------------------
S&P Global Ratings raised its rating to 'BB' from 'BB-' on
Bridgeview, Ill.'s general obligation (GO) debt. The outlook is
stable.
"The one-notch upgrade reflects improvement in the village's
financial condition and the development of a long-term plan for
repaying debt without scoop-and-toss debt refinancing," said S&P
Global Ratings credit analyst Scott Nees.
S&P said, "The stable outlook reflects our view that Bridgeview's
structural budgetary performance has improved such that it is no
longer reliant on one-shot measures to fund debt service or
operations. The village's much stronger reserve balances and
multiyear planning also support credit stability by providing
near-term flexibility and greater ability to identify and respond
to outyear imbalances.
"We could lower the rating if economic growth or revenue
performance weakens, resulting in an unaddressed budgetary
imbalance or creating a greater likelihood of outyear budget
pressure.
"We could raise the rating if Bridgeview is able to demonstrate
consistent budgetary balance while building budgetary flexibility
and liquidity to stronger levels, offering a more meaningful hedge
against economic downcycles and other sources of unforeseen
budgetary pressure." Economic growth and ongoing debt amortization,
resulting in a stronger liability profile, could also contribute to
upside rating momentum.
CA TECHIES: Case Summary & 10 Unsecured Creditors
-------------------------------------------------
Debtor: CA Techies Inc.
d/b/a 76 Food Store
11237 Parkmead Street
Santa Fe Springs, CA 90670
Chapter 11 Petition Date: March 24, 2023
Court: United States Bankruptcy Court
Central District of California
Case No.: 23-11776
Judge: Hon. Sandra R. Klein
Debtor's Counsel: Michael Jay Berger, Esq.
LAW OFFICES OF MICHAEL JAY BERGER
9454 Wilshire Boulevard, 6th Floor
Beverly Hills, CA 90212
Tel: (310) 271-6223
Fax: (310) 271-9805
Email: michael.berger@bankruptcypower.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Mandeep Singh as president.
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/AUIIHKI/CA_Techies_Inc__cacbke-23-11776__0001.0.pdf?mcid=tGE4TAMA
CAMBER ENERGY: To Resume Merger Talks With Viking
-------------------------------------------------
Camber Energy, Inc. and Viking Energy Group, Inc. announced that
the Board of Directors of each company resolved on or about March
14, 2023, as a result of Camber addressing certain legacy
accounting issues and extinguishing, through redemptions and
conversions, approximately 94% of Camber's previously issued shares
of Series C Redeemable Convertible Preferred Stock, to resume
negotiations and take certain steps regarding the previously
announced Agreement and Plan of Merger between Viking and Camber.
The Merger Agreement provides that, upon the terms and subject to
the conditions set forth therein, a newly formed wholly owned
subsidiary of Camber will merge with and into Viking, with Viking
surviving the Merger as a wholly-owned subsidiary of Camber and
Camber remaining the sole publicly-traded entity. However, given
the lapse of time since the date of the Merger Agreement, Camber
and Viking believe it is reasonably likely that certain terms will
need to be modified by the parties in order for the parties to
proceed with the Merger.
The Board of Directors of each of Camber and Viking authorized,
among other things, that each company re-engage separate,
independent valuation firms to provide fairness opinions or any
other valuation report, analyses or presentations that might be
necessary or appropriate regarding with the Merger, engage legal
counsel and other professionals or consultants, and permitted
authorized representatives to communicate with authorized
representatives of the other party on matters related to the
Merger, including with respect to possible amendments or
modifications to the Merger Agreement as the parties consider
necessary or appropriate, subject in all cases to the final
approval of the Board of Directors of each entity.
James Doris, president and chief executive officer of both Camber
and Viking, commented, "It has taken longer than anticipated to
resume activity with respect to the proposed transaction, but it
was definitely not due to the lack of interest or desire but rather
the need to resolve and/or improve certain items. We are pleased
to have the unanimous support from the members of the Board of
Directors of each company to take these next steps, and believe
combining Camber's national stock exchange platform with Viking's
diversified portfolio of innovative technologies and other
important energy-related initiatives will be a significant benefit
to all stakeholders and allow the organization to more efficiently
execute its growth strategy."
Benefits of Merger
If the Merger is consummated, Viking's shareholders would receive
shares of common stock of Camber in exchange for their shares of
common stock of Viking based on the applicable exchange ratio, and
potentially benefit from owning shares of a company listed on a
national stock exchange platform with greater liquidity and an
established trading history.
If the Merger is completed, Camber would acquire full legal and
accounting control of Viking, permitting Camber to, among other
things, report underlying subsidiary revenues at the Camber level,
and Camber would benefit directly and fully from Viking's business
activities, including as it relates to Viking's interests in the
following:
* Custom Energy & Power Solutions Business;
* Exclusive License to a Patented Clean Energy & Carbon-Capture
system;
* Intellectual property rights to a fully developed, patented
ready-for-market proprietary Medical & Bio-Hazard Waste Treatment
system using Ozone Technology; and
* Patent pending ready-for-market proprietary Open Conductor
Detection systems.
About Camber Energy
Based in Houston, Texas, Camber Energy, Inc. --
http://www.camber.energy-- is a growth-oriented diversified energy
company. Through its majority-owned subsidiary, Camber provides
custom energy & power solutions to commercial and industrial
clients in North America and owns interests in oil and natural gas
assets in the United States. The company's majority-owned
subsidiary also holds an exclusive license in Canada to a patented
carbon-capture system, and has a majority interest in: (i) an
entity with intellectual property rights to a fully developed,
patent pending, ready-for-market proprietary Medical & Bio-Hazard
Waste Treatment system using Ozone Technology; and (ii) entities
with the intellectual property rights to fully developed, patent
pending, ready-for-market proprietary Electric Transmission and
Distribution Open Conductor Detection Systems.
Camber Energy reported a net loss attributable to the company of
$107.74 million for the year ended Dec. 31, 2022, a net loss
attributable to the company of $169.68 million for the year ended
Dec. 31, 2021, compared to a net loss attributable to the company
of $52.01 million for the nine months ended Dec. 31, 2020.
Dallas, Texas-based Turner, Stone & Company, L.L.P., the Company's
auditor since 2021, issued a "going concern" qualification in its
report dated March 17, 2023, citing that the Company has suffered
recurring losses from operations, has a stockholder deficit and has
a net capital deficiency that raises substantial doubt about its
ability to continue as a going concern.
CAMP DAVID: Case Summary & Eight Unsecured Creditors
----------------------------------------------------
Debtor: Camp David, LLC
12001 Cedar Lake Rd.
Biloxi, MS 39532-8445
Chapter 11 Petition Date: March 23, 2023
Court: United States Bankruptcy Court
Southern District of Mississippi
Case No.: 23-50402
Debtor's Counsel: Patrick Sheehan, Esq.
SHEEHAN AND RAMSEY, PLLC
429 Porter Ave
Ocean Springs, MS 39564
Tel: 228-875-0572
Email: Pat@sheehanramsey.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Mark Parish as manager.
A copy of the Debtor's list of eight unsecured creditors is
available for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/HP5IGQA/Camp_David_LLC__mssbke-23-50402__0004.0.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/PSICCUI/Camp_David_LLC__mssbke-23-50402__0001.0.pdf?mcid=tGE4TAMA
CARVANA CO: S&P Lowers ICR to 'CC' on Distressed Debt Exchange
--------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Carvana Co.
to 'CC' from 'CCC+'. At the same time, S&P lowered the issue-level
rating on the senior unsecured notes to 'C' from 'CCC'.
S&P said, "The negative outlook reflects our expectation that we
will lower our issuer credit rating on the company to 'D' (default)
upon the completion of the proposed exchange offer. Shortly after
restructuring, we would raise the ratings to a level that reflects
the ongoing risk of a conventional default or future distressed
restructurings."
S&P views the proposed exchange offer as distressed and tantamount
to default. The downgrade follows Carvana's announcement that it
commenced offers to exchange its outstanding existing notes for up
to an aggregate principal amount of $1 billion of new 9.0%/12.0%
cash/payment-in-kind (PIK) toggle senior secured second-lien notes
due 2028. The new notes and guarantees will be secured by
second-priority liens on certain assets and property owned by
Carvana LLC, which the Ally Parties were granted a first-priority
perfected security interest. The new notes and guarantees will be
effectively senior to all existing and future unsecured debt.
The proposed transaction will somewhat extend the company's
maturities and offer some cash interest cost savings due to the PIK
option.
S&P said, "However, we view the proposed exchange offer as
tantamount to default because we believe lenders will receive less
than originally promised as the principal amount of the new
securities offered is less than the original par amount, the new
maturities extend beyond the original, and the timing of payments
will be slower by adding a payment-in-kind feature for more than
half the interest on the proposed notes. In addition, all existing
debt holders are essentially being primed by the senior position of
the new notes. In our view, Carvana is pursuing this transaction
because its capital structure is unsustainable and the company has
limited options to reduce its debt burden and improve its cash flow
organically.
"The negative outlook reflects our expectation that we will lower
the issuer credit rating on Carvana to 'D' when the proposed
exchange offer is completed.
"We will likely lower the issuer credit rating to 'D' when the
proposed exchange offer is completed. Shortly after restructuring,
we would raise the ratings to a level that reflects the ongoing
risk of a conventional default or future distressed
restructurings.
"While unlikely, we could raise the issuer credit rating if Carvana
does not complete the proposed exchange offer and the company
establishes a clear plan to avoid any future debt restructuring."
ESG credit indicators: E-2, S-3, G-3
CASTLE BLACK: Files Emergency Bid to Use Cash Collateral
--------------------------------------------------------
Castle Black, Inc. asks the U.S. Bankruptcy Court for the Western
District of Tennessee, Western Division, for authority to use cash
collateral for maintenance and upkeep of its construction projects
and payment of their vendors.
The Debtor's income is derived from general construction work as
predominantly a general contractor. The Debtor has a few properties
as investment properties and building residential homes for sale.
The Debtor's primary lender is BC Factoring secured by the accounts
receivable and other assets by virtue of a filed UCC-1 filed of
record on September 12, 2017. The Debtor is indebted to BC
Factoring in the approximate amount of $625,236. BC Factoring holds
a security interest in all the Debtor's accounts, accounts
receivable, rents and various invoices on construction projects.
The Debtor asserts there may be secondary liens on the cash
collateral but those liens are filed after BC Factoring's lien and
will be subordinate liens. These other creditors are believed to be
First Corporate Solutions, Mulligan, SBA, Unique Solutions and
Capytal.
The Debtor explains the use of cash collateral will ensure it is
able to pay the ongoing expenses that arise in the ordinary course
of its business and ensure the continuous operation of the business
during the pendency of the chapter 11 case. The Debtor further
seeks approval for any capital expenditure or expenditures as
necessary such as equipment or vehicle repairs and replacements.
The Debtor believes the total value of the collateral pledged to BC
Factoring is approximately $700,000 with equity cushion which
protects the interest of BC Factoring as adequate protection. In
the alternative, the Debtor proposes an interest only payment to BC
Factoring till confirmation of a plan, sale of Property or further
order of the Court.
A copy of the motion is available at https://bit.ly/3K5X2Yf from
PacerMonitor.com.
About Castle Black
Castle Black Inc. owns in fee simple title seven properties located
in Memphis, TN, valued at $1.48 million.
Castle Black Inc. filed a petition for relief under Subchapter V of
Chapter 11 of the Bankruptcy Code (Bankr. W.D. Tenn. Case No.
23-21064) on March 2, 2023. In the petition filed by Jonathan Logan
as president, the Debtor reported total assets of $2,150,234 and
total liabilities of $5,314,032.
The case is overseen by Honorable Bankruptcy Judge M. Ruthie
Hagan.
James E. Bailey, III, has been appointed as Subchapter V trustee.
The Debtor is represented by the Law Office of Toni Campbell
Parker.
CBC RESTAURANT: Court OKs Cash Collateral Access Thru March 26
--------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware authorized
CBC Restaurant Corp. and its debtor-affiliates to continue using
cash collateral on an interim basis in accordance with the budget,
with a 15% variance, through March 26, 2023.
A further hearing on the matter is set for March 28, 2023 at 1
p.m.
The Debtors have an immediate and critical need to continue using
cash collateral in order to permit, among other things, the orderly
continuation of the operation of their organization, to maintain
business relationships with vendors, suppliers, and customers, to
make payroll, and to satisfy other working capital and operational
needs.
As previously reported by the Troubled Company Reporter, the
Debtors' prepetition lenders extended credit facilities in an
aggregate amount not to exceed $177.5 million pursuant to the
Credit and Guaranty Agreement, dated as of November 10, 2017 by and
among CBC Restaurant Corp., a Delaware corporation, Corner Bakery
Holding Company, a Delaware corporation, and certain subsidiaries
of the Company, as Guarantors, the Lenders party thereto from time
to time and SSCP Restaurant Investors, LLC as the successor by
assignment from Goldman Sachs Specialty Lending Group, L.P., as
Administrative Agent and Collateral Agent. These facilities
consisted of:
$155 million aggregate amount of Tranche A Term Loans; and
$22.5 million aggregate principal amount of Revolving
Commitments, subject to a $9.5 million sublimit for Revolving Loans
and a $13 million sublimit for Letters of Credit.
Certain Credit Parties also entered into a Pledge and Security
Agreement dated as of November 10, 2017, as amended or otherwise
modified from time to time, including the Pledge Supplement dated
September 30, 2019, and a Trademark Security Agreement, also dated
as of November 10, 2017, granted in connection with the Credit
Facility.
As of the Petition Date, the amount allegedly due under the Credit
Agreement -- and disputed by the Debtors -- is approximately $33.8
million.
SSCP asserts that pursuant to the Prepetition Agreements, as of the
Petition Date, the Credit Parties owed SSCP not less than $42.5
million. SSCP further asserts that certain monetary and
non-monetary defaults existed as of the Petition Date pursuant to
the Prepetition Agreements, which had not been cured as of the
Petition Date.
As adequate protection, SSCP is granted replacement liens and
security interests in an amount not to exceed the Debtors' Cash
Collateral Usage in all accounts and inventory acquired by the
Debtors after the Petition Date.
The Adequate Protection Liens will be valid, perfected, enforceable
and effective against the Debtors, their successors and assigns,
including any trustee or receiver in this or any superseding
chapter 7 case, without any further action by the Debtors or SSCP
and without the execution, delivery, filing or recordation of any
promissory notes, financing statements, security agreements or
other documents.
These events constitute an "Event of Default":
a. Any material failure to comply with the terms of the
Interim Order;
b. If a final interim order granting the continued use of
SSCP's cash collateral by the Debtors or approving postpetition
financing is not approved by the Court and entered on or before
March 30, 2023 or such later date as is agreed to in writing by the
Debtors and SSCP;
c. If any attempt by any Debtor to seek approval for
postpetition financing to be provided by any party other than SSCP
that does not provide for the immediate and indefeasible
satisfaction of any and all outstanding Adequate Protection
Payments owed to SSCP or any administrative expense claims of SSCP
related to the Cash Collateral Usage;
d. If any representation made by the Debtors after the
commencement of the Chapter 11 case in any report or financial
statement delivered to SSCP proves to have been false or misleading
in any material respect as of the time when made or given;
e. If a trustee or examiner, with authority to affect the
operation of the business of the Debtors (or any of them) is
appointed in the chapter 11 proceedings without the consent of
SSCP;
f. The grant of any security interest, lien, or encumbrance
(excluding any Prior Liens) in any of the Collateral which is pari
passu with or senior to the liens, security interests, or claims of
SSCP (including, without limitation, the Adequate Protection
Liens), including, without limitation, any surcharge of the
Collateral, unless SSCP agrees in writing that such security
interest, lien, encumbrance, or surcharge does not constitute an
Event of Default;
g. If any Debtor attempts to vacate or modify the Interim
Cash Collateral Orders over the objection of SSCP;
h. If any order modifying, reversing, revoking, staying,
rescinding, vacating, or amending the Interim Cash Collateral
Orders without the consent of SSCP is entered;
i. If an order pursuant to USC section 363 approving the sale
of any Collateral without the consent of SSCP is entered;
j. The failure of the Debtors to timely pay any and all
Adequate Protection Fees and Expenses authorized or required in the
Interim Cash Collateral Orders;
k. Except for the reasonable and necessary sale of inventory
and supplies and the collection of accounts receivable in the
ordinary course of the Debtors' businesses and as may be provided
for in the Budget and consistent with the terms thereof, the sale,
transfer, lease, or disposition of, or the imposition of any
encumbrance on, any of the Collateral or the Cash Collateral,
without the prior written consent of SSCP;
l. If the bankruptcy cases of the Debtors (or any of them)
are converted to a case under chapter 7 without the consent of
SSCP;
m. If the bankruptcy cases of the Debtors (or any of them)
are dismissed without the consent of SSCP; or
n. If any of the Debtors file any pleading or commence any
action against SSCP challenging the validity or enforceability of
SSCP's pre-petition liens or claims, or seeking to avoid, disallow,
subordinate or recharacterize any claim, lien or interest held by
SSCP.
A further hearing on the matter is set for March 28, 2023 at 1
p.m.
A copy of the order is available at https://bit.ly/3K4r1zC from
PacerMonitor.com.
A copy of the budget is available at https://bit.ly/40dkTKS from
PacerMonitor.com.
The Debtor projects $2,456,000 in total cash receipts and
$4,224,000 in total operating disbursements for one week.
About CBC Restaurant Corp.
CBC Restaurant Corp. and its affiliates operate and franchise
quick-casual eateries under the name Corner Bakery Cafe. The
Debtors sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Del. Lead Case No. 23-10245) on February 22, 2023.
In the petition signed by Jignesh Pandya, CEO and COO, the Debtor
disclosed up to $50 million in both assets and liabilities.
Judge Karen B. Owens oversees the case.
The Debtors tapped Mette H. Kurth, Esq., at Culhane Meadows PLLC as
legal counsel, Hilco Trading LLC d/b/a Hilco Global as financial
advisor and investment banker, and Kurtzman Carson Consultants LLC
as notice, claims, balloting agent, and administrative advisor.
SSCP Restaurant Investors, LLC, the Debtor's prepetition lender,
may be reached through Ken Schwab -- kschwab@sscpmanagement.com
Counsel to SSCP is:
Holland N. O'Neil, Esq.
Mark C. Moore, Esq.
Timothy Mohan, Esq.
Foley & Lardner LLP
2021 McKinney Avenue, Suite 1600
Dallas, TX 75201
E-mail: honeil@foley.com
mmoore@foley.com
tmohan@foley.com
- and -
Ricardo Palacio, Esq.
Ashby & Geddes, P.A.
500 Delaware Avenue, 8th Floor
P.O. Box 1150, Wilmington, DE 19899
E-mail: RPalacio@ashbygeddes.com
Counsel for the Official Committee of Unsecured Creditors are Jason
Torf, Esq. -- Jason.Torf@tuckerellis.com -- at Tucker Ellis; and
Christopher Samis, Esq. -- CSamis@potteranderson.com -- Potter
Andeson.
CELSIUS NETWORK: Creditors Oppose $3-Mil. Atty Fees Request
-----------------------------------------------------------
Celsius Network LLC and its debtor-affiliates seek authorization
for the Debtors to reimburse to-be-named employees up to $3 million
in past legal expenses in the aggregate and $240,000 per employee
in future legal expenses to act as cooperating witnesses in ongoing
criminal and regulatory proceedings.
As part of the Debtors' ongoing chapter 11 cases and general
investigations into Celsius and its prepetition business practices,
various employees, as Cooperating Witnesses, have been cooperating
in Investigations. Such engagement has resulted in the production
of over 200,000 documents, over 1,000 individual diligence requests
answered, weekly calls with the Committee, daily interactions
between the Debtors' advisors and the Committee, and a number of
in-person meetings with the Committee, the Examiner, and government
agencies.
The Debtors believe that the reimbursement of the Expenses on a
postpetition basis pursuant to the Reimbursement Procedures is a
proper exercise of the Debtors' business judgment and will expedite
the Debtors' progress in these chapter 11 cases by (a) allowing the
Debtors' employees to focus on maximizing profitability by helping
to cover the costs associated with retaining counsel that
represents their interests, and (b) aligning employee incentives
with the Debtors' business goals.
The Official Committee of Unsecured Creditors objects to the
Debtors' Motion.
"While the Committee does not wish to minimize the burden to
innocent employees who want to retain separate counsel to represent
them, it is also aware that thousands of the Debtors' creditors who
also want to retain separate counsel to press their own claims face
similar hardship. It is improper to prospectively elevate requests
for reimbursement of certain preferred parties," the Committee said
in court filings.
"The Debtors' argument that it is ordinary for a non-operating
cryptocurrency exchange to pay millions of dollars to fund its
current and former employees' legal fees and expenses as part of
criminal and other investigations by multiple federal and state
authorities is not credible. Moreover, no creditor would have
expected that their cryptocurrency would fund these types of
expenses when transferring their assets to the Debtors
prepetition," the Committee added.
About Celsius Network
Celsius Network LLC -- http://www.celsius.network/-- is a
financial services company that generates revenue through
cryptocurrency trading, lending, and borrowing, as well as by
engaging in proprietary trading.
Celsius helps over a million customers worldwide to find the path
towards financial independence through a compounding yield service
and instant low-cost loans accessible via a web and mobile app.
Celsius has a blockchain-based fee-free platform where membership
provides access to curated financial services that are not
available through traditional financial institutions.
The Celsius Wallet claims to be one of the only online crypto
wallets designed to allow members to use coins as collateral to get
a loan in dollars, and in the future, to lend their crypto to earn
interest on deposited coins (when they're lent out).
Crypto lenders such as Celsius boomed during the COVID-19 pandemic,
drawing depositors with high interest rates and easy access to
loans rarely offered by traditional banks. But the lenders'
business model came under scrutiny after a sharp sell-off in the
crypto market spurred by the collapse of major tokens terraUSD and
luna in May 2022.
New Jersey-based Celsius froze withdrawals in June 2022, citing
"extreme" market conditions, cutting off access to savings for
individual investors and sending tremors through the crypto
market.
The list of major crypto firms that have filed for bankruptcy
protection in 2022 now includes Celsius Network, Three Arrows
Capital and Voyager Digital.
Celsius Network, LLC and its subsidiaries sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No.
22-10964) on July 14, 2022. In the petition filed by CEO Alex
Mashinsky, the Debtors estimated assets and liabilities between $1
billion and $10 billion.
The Debtors tapped Kirkland & Ellis, LLP and Kirkland & Ellis
International, LLP as legal counsels; Centerview Partners, LLC as
investment banker; and Alvarez & Marsal North America, LLC as
financial advisor. Stretto, the claims agent and administrative
advisor, maintains the page https://cases.stretto.com/celsius
On July 27, 2022, the U.S. Trustee appointed an official committee
of unsecured creditors. The committee tapped White & Case, LLP, as
its bankruptcy counsel; Elementus Inc. as its blockchain forensics
advisor; M3 Advisory Partners, LP as its financial advisor; and
Perella Weinberg Partners, LP, as its investment banker.
Shoba Pillay, Esq., is the examiner appointed in the Debtors'
Chapter 11 cases. Jenner & Block, LLP, and Huron Consulting
Services, LLC, serve as the examiner's legal counsel and financial
advisor, respectively.
CHOATES G. CONTRACTING: Fine-Tunes Plan Documents
-------------------------------------------------
Choates G. Contracting, LLC submitted a Subchapter V First
Post-Confirmation Modified Plan of Reorganization.
The Debtor's Second Amended Chapter 11 Plan of Reorganization Dated
October 19, 2021 (the "Confirmed Plan") was confirmed by the Court
pursuant to an Order confirming Chapter 11, Sub-Chapter V,
Non-Consensual Plan of Reorganization entered December 22, 2021.
The Debtor seeks to modify the Confirmed Plan.
The Confirmed Plan provided for the surrender in full satisfaction
of certain real properties as well as the payment in full of 100%
of all unsecured claims and the secured claim of Philly Properties
GP, LLC.
In addition, the Debtor proposed to liquidate their interest in the
following properties in order to make additional payments under the
plan: 5300 Master Street, Philadelphia, PA; 13 Riviera Drive,
Pennsville, NJ; 120 Peace Lane, Glassboro, NJ; and 401 Cooper
Landing Road, Suite C-4, Cherry Hill, NJ.
However, the failure to liquidate any of these properties was not
an event of default under the Confirmed Plan.
To the extent that there were net proceeds after the payment of
secured claims, the Debtor was to pay over 80% of the net proceeds
from each of these sales to the Sub-Chapter V Trustee for
disbursement under the Chapter 11 Plan and retain 20% of the net
proceeds for the payment of taxes and to fund operations. The
payment arrearages with respect to secured obligations on the
properties (for sale/refinance) will be paid at the time of the
sale/refinance. In addition, the Debtor was obligated to sell real
estate located at 122 Danton Lane, Mullica Hill, New Jersey within
one year of confirmation of the plan.
The Modified Plan provides for the T the surrender in full
satisfaction of the same real properties as well as the payment in
full of 100% of all unsecured claims and the secured claim of
Philly Properties GP, LLC.
The Modified Plan provides for monthly payments by the Debtor to
the Sub-Chapter V Trustee on the following payment schedule:
* Year 1 (commencing January 1, 2022): $5,000 per month paid
to the Sub-Chapter V Trustee;
* Year 2 (commencing January 1, 2023): No payments until
Chapter 11 Modified Plan is confirmed. Within 10 days of
confirmation, Debtor or third party on behalf of Debtor shall
tender a sum to the Sub-V Trustee equal to $5,000 per month,
calculated with as if payments were to commence March 1, 2023
* Years 3, 4, 5: $12,000 per month paid to the Sub-Chapter V
Trustee.
Throughout the duration of the Confirmed Chapter 11 Plan and the
Modified Chapter 11 Plan payments shall be disbursed in a waterfall
approach, with Administrative Expenses being paid first, then
Priority Claims being paid second, then Secured Claims (including
arrearages) being paid third, then Lease Arrearages being paid
fourth, and general unsecured claims being paid fifth.
Like in the prior iteration of the Plan, any allowed General
Unsecured Claims will receive 100% payment, to be paid though the
plan as a General Unsecured Claim.
A full-text copy of the First Post-Confirmation Modified Plan of
Reorganization dated March 20, 2023 is available at
https://bit.ly/3K76gDB from PacerMonitor.com at no charge.
Debtor's Counsel:
Daniel L. Reinganum
McDowell Law, PC
46 W. Main Street
Maple Shade, NJ 08052
About Choates G. Contracting
Cherry Hill, N.J.-based Choates G. Contracting, LLC sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. D.N.J.
Case No. 21-13085) on April 15, 2021. Darrell Choates, managing
member, signed the petition. In the petition, the Debtor disclosed
total assets of $1,672,000 and total liabilities of $1,167,600.
Judge Andrew B. Altenburg Jr. oversees the case. McDowell Law, PC
is the Debtor's legal counsel.
COIN CLOUD: Committee Hires McDonald Carano as Nevada Counsel
-------------------------------------------------------------
The official committee of unsecured creditors of Coin Cloud Inc.,
doing business as Coin Cloud, seeks approval from the U.S.
Bankruptcy Court for the District of Nevada to hire McDonald Carano
LLP as its Nevada bankruptcy counsel.
The firm will render these services:
a. provide legal advice and assistance to the Committee and
its consultation with the Debtor relative to the Debtor's
administration of the case;
b. represent the Committee at hearings held before the Court
and communication with the Committee regarding the issues raised,
as well as the decisions of the Court;
c. assist and advise the Committee in its examination and
analysis of the conduct of the Debtor's affairs and the reason for
its chapter 11 filing;
d. review and analyze all application, motions, orders,
statements of operations and schedules filed with the Court by the
Debtor or third parties, advise the Committee as to their
propriety, and, after consultation with the Committee, take
appropriate action;
e. assist the Committee in preparing applications, motions and
orders in support of positions taken by the Committee, as well as
prepare witnesses and review documents in this regard;
f. apprise the Court of the Committee's analysis of the
Debtor's operations;
g. confer with the financial advisors and any other
professionals retained by the Committee, if any are selected and
approved, so as to advise the Committee and the Court more fully of
the Debtor's operations;
h. assist the Committee in its negotiations with the Debtor
and other parties-in-interest concerning the terms of any proposed
plan or reorganization;
i. assist the Committee in its consideration of any plan
reorganization proposed by the Debtor's or other
parties-in-interest as to whether it is in the best interest of
creditors and is feasible;
j. assist the Committee with such other services as may
contribute to the confirmation of a plan of reorganization;
k. advise and assist the Committee in evaluating and
prosecuting any claims that the Debtor may have against third
parties;
l. assist the Committee in the determination of whether to,
and if so, how to, sell assets of the Debtor for the highest and
best price; and
m. assist the Committee in performing such other services as
may be in the interest of creditors, including, but not limited to,
the commencement of, and participation in, appropriate litigation
respecting the estate.
The firm's hourly rates are as follows:
Ryan J. Works, Esq. $650 per hour
Amanda M. Perach, Esq. $550 per hour
Brian Grubb $225 per hour
The Debtor paid a retainer fee of $20,000 to the law firm.
Ryan Works, Esq., a partner at McDonald Carano, disclosed in a
court filing that he is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Ryan J. Works, Esq.
McDonald Carano, LLP
2300 W. Sahara Avenue, Suite 1200
Las Vegas, NV 89102
Telephone: 702.873.4100
Fax: (702) 873-9966
Email: rworks@mcdonaldcarano.com
About Cash Cloud
Coin Cloud Inc., doing business as Coin Cloud, operates automated
teller machines for buying and selling Bitcoin, Ethereum, Dogecoin,
and more than 40 other digital currencies with cash, card and
more.
Coin Cloud Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Nev. Case No. 23-10423) on Feb. 7, 2023.
In the petition filed by Chris McAlary, as president, the Debtor
reported assets between $50 million and $100 million and estimated
liabilities between $100 million and $500 million.
The case is overseen by Honorable Bankruptcy Judge Mike K.
Nakagawa.
The Debtor tapped Fox Rothschild, LLP as legal counsel, and
Province, LLC as financial advisor. Stretto is the claims agent.
The U.S. Trustee for Region 17 appointed an official committee to
represent unsecured creditors in the Debtor's case. The committee
is represented by McDonald Carano, LLP and Seward & Kissel, LLP.
CORE SCIENTIFIC: U.S. Trustee Appoints Equity Committee
-------------------------------------------------------
The U.S. Trustee for Region 7 appointed an official committee to
represent equity security holders in the Chapter 11 cases of Core
Scientific, Inc. and its affiliates.
The committee members are:
1. Rudolph Family Trust
c/o Lawrence Rudolph Trustee
613 Canyon Greens Dr.
Las Vegas, NV 89144
Phone: 310-909-9745
Email: laru@reign-deer.com
2. Douglas S. Wall
4233 Versailles Ave.
Dallas, TX 75205
Phone: 214-662-9255
Email: wallds@yahoo.com
3. Brent Berge
6718 E. Rovey Ave.
Paradise Valley, AZ 85253
Phone: 602-430-3673
Email: brent.berge@bergetoyota.com
4. Foundry Digital LLC
Attn: Ryan Boyle
1100 Pittsford Victor Rd.
Pittsford, NY 14534
Phone: 646-465-4195
Email: rboyle@foundrydigital.com
5. RBH Holdings, LLC
c/o Randall B. Hale
3737 Buffalo Speedway,
Ste. 1800
Houston, TX 77098
Phone: 713-304-8262
Email: rhale@rockhillcap.com
6. Aaron Baker
2895 W. Capovilla Ave., #140
Las Vegas, NV 89119
Phone: 702-830-1741
Email: aaron@alphabravoholdings.com
7. Janice J. Kelly
c/o Dee J. Kelly, Jr.
201 Main St., Ste, 2500
Fort Worth, TX 76102
Phone: 817-332-2500
Email: dee.kelly@kellyhart.com
About Core Scientific
Core Scientific, Inc. (OTCMKTS: CORZQ) is the largest U.S.
publicly-traded Bitcoin mining company in computing power. Core
Scientific, which was formed following a business combination in
July 2021 with blank check company XPDI, is a large-scale operator
of dedicated, purpose-built facilities for digital asset mining
colocation services and a provider of blockchain infrastructure,
software solutions and services. Core mines Bitcoin, Ethereum and
other digital assets for third-party hosting customers and for its
own account at its six fully operational data centers in North
Carolina (2), Georgia (2), North Dakota (1) and Kentucky (1). Core
was formed following a business combination in July 2021 with XPDI,
a blank check company.
In July 2022, one of the Company's largest customers, Celsius
Mining LLC, filed for Chapter 11 bankruptcy in New York. With low
Bitcoin prices depressing mining revenue to a record low, Core
Scientific first warned in October 2022 that it may have to file
for bankruptcy if the company can't find more funding to repay its
debt that amounts to over $1 billion. Core Scientific did not make
payments that came due in late October and early November 2022 with
respect to several of its equipment and other financings, including
its two bridge promissory notes.
Core Scientific and its affiliates filed petitions for relief under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Texas Lead Case No.
22-90341) on Dec. 21, 2022. As of Sept. 30, 2022, Core Scientific
had total assets of US$1.4 billion and total liabilities of US$1.3
billion.
Judge David R. Jones oversees the cases.
The Debtors hired Weil, Gotshal & Manges, LLP as legal counsel; PJT
Partners, LP as investment banker; and AlixPartners, LLP as
financial advisor. Stretto is the claims agent.
A group of Core Scientific convertible bondholders is working with
restructuring lawyers at Paul Hastings.
B. Riley Commercial Capital, LLC, as administrative agent under the
Replacement DIP facility, is represented by Choate, Hall & Stewart,
LLP.
On Jan. 9, 2023, the U.S. Trustee for Region 7 appointed an
official committee to represent unsecured creditors in the Debtors'
Chapter 11 cases. The committee tapped Willkie Farr & Gallagher,
LLP as legal counsel and Ducera Partners, LLC as investment banker.
CRAWL SPACE: Unsecureds Will Get 14 Cents on Dollar in Plan
-----------------------------------------------------------
Crawl Space Door System, Inc. ("CSDS") filed with the U.S.
Bankruptcy Court for the Eastern District of Virginia a Plan of
Reorganization for Small Business dated March 20, 2023.
The Debtor is a Virginia corporation established in 2002 by William
G. Sykes and slowly grew into a leader in the sale of crawl space
moisture control products, largely designed by Mr. Sykes.
A competitor, Smart Vent Products, sued CSDS in a patent
infringement action filed in the District of New Jersey in 2013
which concluded in 2020. Although CSDS eventually prevailed, the
cost of defending the action proved to be ruinous. CSDS filed suit
against its former litigation counsel in the U.S. District Court
for the Eastern District of Virginia for legal malpractice which
has been transferred to the U.S. District Court for the Eastern
District of Pennsylvania.
The malpractice case is pending. Meanwhile, CSDS' former litigation
counsel assigned its claim to the firm's commercial collection arm,
Philadelphia Professional Collections, LLC, which obtained a
judgment in the United States District Court for the District of
New Jersey in the approximate amount of $797,000.
The Plan Proponent's financial projections show that the Debtor
will have projected disposable income of approximately $114,105.
The last Plan payment is expected to be paid on or about June 30,
2026.
The Plan proposes to assume executory contracts and pay according
to ordinary business terms, pay the sole secured claim according to
its terms, and use CSDS' disposable income to pay allowed
administrative claims, priority claims, and then unsecured claims,
pro rata of their interests, through: (i) 7 monthly installments of
$3,081, followed by (ii) 12 monthly installments of $3,143,
followed by (iii) 12 monthly installments of $3,206, followed by
(iv) 5 monthly installments of $3,270 for a total of $114,105.
This Plan of Reorganization proposes to pay the creditors of CSDS
from future disposable income.
Non-priority unsecured creditors holding allowed claims will
receive distributions, which the proponent of this Plan has valued
at approximately 14 cents on the dollar. This Plan also provides
for the payment of administrative and priority claims.
Class 1 consists of Priority claims. Accrued but unpaid claims as
of the filing of the Case, if any, will be paid when due in the
ordinary course, or, in full, on the Effective Date.
Class 2 consists of the Secured claim of Ford Credit. Ford Credit
will retain its lien and be paid in the ordinary course according
to its loan terms.
Class 3 consists of Unsecured, non-priority claims. This Class will
receive pro rata of their interests from net disposable income of
monthly payments consisting of 7 installments of $3,081, then 12
installments of $3143, then 12 installments of $3,206, then 5
installments of $3,270 following payment of unclassified
administrative claims. This Class is impaired.
Class 4 consists of Equity claims. The shareholders of the debtor
will retain their shareholder interests in the debtor. Shareholders
will not receive dividends on account of their interests while Plan
payments remain outstanding to the unsecured class. This class is
impaired.
Plan payments will be made from the net disposable income of CSDS
following the effective date of the Plan.
A full-text copy of the Plan of Reorganization dated March 20, 2023
is available at https://bit.ly/3lFgKk4 from PacerMonitor.com at no
charge.
Counsel for Debtor:
Paul A. Driscoll, Esq.
Zemanian Law Group
223 East City Hall Avenue, Suite 201
Norfolk, VA 23510
Telephone: (757) 622-0090
E-mail: paul@zemanianlaw.com
About Crawl Space Door System
Crawl Space Door System, Inc., supplies homeowners, pest control
companies, contractors, and builders with crawlspace air vents,
flood vents, vent covers, and exhaust fans.
Crawl Space Door System filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Va. Case No.
22-72118) on Dec. 20, 2022. The petition was signed by William G.
Syke as president. At the time of filing, the Debtor estimated
$500,000 to $1 million in assets and $1 million to $10 million in
liabilities.
DIAMOND SPORTS: Streaming Rights Fight Emerges in Chapter 11
------------------------------------------------------------
Vince Sullivan of Law360 reports that professional sports leagues
signaled their concerns about regional sports network operator
Diamond Sports Group's plans to use its Chapter 11 to shift to a
digital streaming model for its game broadcasts as the company made
its first appearance in Texas bankruptcy court.
As reported in the TCR, Diamond Sports said it filed for Chapter 11
bankruptcy while it's finalizing a Restructuring Support Agreement
with holders of a majority of the Company's debt and Sinclair
Broadcast Group, Inc., to eliminate over $8 billion of the
Company's outstanding debt. DSG expects that its Bally Sports
regional sports networks ("RSN") will continue to operate in the
ordinary course during the Chapter 11 process. The RSA Diamond is
finalizing with creditors and Sinclair provides that Diamond will
separate its business from Sinclair and become a standalone
company. The RSA will further provide that Diamond's first lien
lenders will be unimpaired, while Diamond's other secured and
unsecured creditors will equitize their debt in exchange for equity
and warrants issued by reorganized Diamond. Sinclair is expected
to continue to provide management services during the proceeding
and to provide transition services for a period after Diamond
emerges from Chapter 11.
About Diamond Sports Group
Diamond Sports Group, LLC operates as a sports marketing company.
The Company offers seminars, combine, speed and agility
assessments, recruiting tools, and online training sessions for
sports including football, baseball, soccer, and basketball.
Diamond Sports Group and 29 of its affiliates sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead Case
N0. 23-90116) on March 14, 2023. In the petition filed by David F.
DeVoe, Jr., as chief financial officer and chief operating officer,
the Debtor listed estimated assets and liabilities between $1
billion and $10 billion.
The Debtors tapped PORTER HEDGES LLP as general bankruptcy counsel;
WILMER CUTLER PICKERING HALE AND DORR LLP as conflicts counsel;
ALIXPARTNERS, LLP, as financial advisor; and MOELIS & COMPANY LLC
and LIONTREE ADVISORS LLC as investment bankers. KROLL
RESTRUCTURING ADMINISTRATION LLC is the claims agent.
DIEBOLD NIXDORF: Raises Going Concern Doubt; Amendment Reached
--------------------------------------------------------------
Diebold Nixdorf Inc. disclosed in a regulatory filing that it's
facing near-term pressure on liquidity. The company included
language in the filing saying "substantial doubt exists" about its
ability to continue as a going concern.
Diebold Nixdorf said March 16, 2023, in its Form 10-K for the year
Dec. 31, 2022, "The Company may not be able to generate sufficient
cash from operations or have access to other sources of liquidity
to sustain its operating needs or to meet its obligations as they
become due over the next twelve-month period, raising substantial
doubt as to the Company's ability to continue as a going concern.
The Company may not be able to generate sufficient cash from
operations or have access to other sources of liquidity to sustain
its operating needs or to meet its obligations as they become due
over the next twelve-month period, raising substantial doubt as to
the Company's ability to continue as a going concern... [T]he
Company has substantial indebtedness and requires sufficient cash
flows and capital resources to fund its debt service obligations
and other liquidity needs. Although the Refinancing Transactions
completed in December 2022 were intended to provide the Company
with the necessary liquidity to meet, along with cash from
operations, its near-term and long-term liquidity needs, the
available borrowing capacity under the ABL Facility has been
substantially limited due to a lower than expected borrowing base.
In addition, slower-than-expected conversion of inventory into
revenue has further suppressed liquidity. As a result, without
modifications to the ABL Facility and access to additional capital,
the Company currently projects that it will have insufficient
liquidity to satisfy its obligations as they become due over the
next twelve-month period. The Company has been in discussions with
certain of its lenders regarding various liquidity solutions,
including a short-term "first-in-last-out" facility to be provided
under its ABL Facility, which a lender has provided a "highly
confident letter" for, subject to customary conditions. The Company
expects the first-in-last-out facility to provide $55.0 of
additional liquidity and to close by March 20, 2023, however, there
can be no assurance that such a facility will be entered into by
such date or at all. In addition, the Company is in discussions
with its lenders about other strategic initiatives and liquidity
solutions for its business. There can be no assurance that the
Company’s efforts to improve its operating performance and
financial position will be successful, that it will be able to
modify the terms of the ABL Facility on commercially reasonable
terms or at all, or that it will be able to obtain additional
financing on commercially reasonable terms or at all."
A copy of the Company's Form 10-K is available at
https://tinyurl.com/mrxrrm74
A copy of the Company's Lender Presentation dated March 16, 2023,
is available at
https://tinyurl.com/3hzy36ct
ABL Credit Amendment
According to a new regulatory filing, on March 21, 2023 (the
"Closing Date"), Diebold Nixdorf and certain of its subsidiaries
entered into an amendment and limited waiver (the "Amendment") to
the Revolving Credit and Guaranty Agreement (the "ABL Credit
Agreement"), among the Company, JPMorgan Chase Bank, N.A., as
administrative agent and collateral agent, GLAS AMERICAS LLC, as
European collateral agent, the subsidiary borrowers (together with
the Company, the "ABL Borrowers”) and guarantors party thereto
and the lenders party thereto.
The Amendment provides for an additional tranche (the "FILO
Tranche") of commitments under the ABL Credit Agreement consisting
of a senior secured "last out" term loan facility (the "FILO
Facility"). Commitments under the FILO Facility were $55 million
and were borrowed in full and cancelled on the Closing Date.
Proceeds of the loans made under the FILO Facility will be used to
finance the ongoing working capital requirements of the Company and
its subsidiaries and for other general corporate purposes.
The FILO Facility will mature on June 4, 2023. Loans under the FILO
Facility bear interest determined by reference to, at the Company's
option, either (x) adjusted term SOFR plus a margin of 8.00% or (y)
an alternative base rate plus a margin of 7.00%. On the Closing
Date the Company paid an upfront fee to the lenders providing the
FILO Facility, which fee was capitalized and added to the
outstanding balance under the FILO Facility. The obligations of the
Company under the FILO Facility benefit from the same guarantees
and security as the existing obligations under the ABL Credit
Agreement.
Pursuant to the Amendment, among other things, for a 75-day period
ending on June 4, 2023 (the "Waiver Period"), the Company will be
permitted to maintain outstanding borrowings and letters of credit
in excess of its then-current borrowing base in an amount not to
exceed $233.8 million (inclusive of amounts outstanding under the
FILO Facility but before giving effect to any payment in kind of
interest or fees added thereto). During the Waiver Period, the
Company will not be permitted to borrow any additional amounts
under the ABL Credit Agreement and must maintain an actual
borrowing base of at least $140 million. In addition, during the
Waiver Period, the Company will not be required to comply with
certain reporting provisions required by the ABL Credit Agreement.
About Diebold Nixdorf
Diebold Nixdorf, Incorporated -- http://www.DieboldNixdorf.com/--
automates, digitizes and transforms the way people bank and shop.
As a partner to the majority of the world's top 100 financial
institutions and top 25 global retailers, the Company's integrated
solutions connect digital and physical channels conveniently,
securely and efficiently for millions of consumers each day. The
Company has a presence in more than 100 countries with
approximately 22,000 employees worldwide.
Diebold Nixdorf reported a net loss of $585.6 million for the year
ended Dec. 31, 2022, a net loss of $78.1 million for the year ended
Dec. 31, 2021, a net loss of $267.8 million for the year ended Dec.
31, 2020, and a net loss of $344.6 million for the year ended Dec.
31, 2019. As of Dec. 31, 2022, the Company had $3.06 billion in
total assets, $1.60 billion in total current liabilities, $2.58
billion in long-term debt, $245.4 million in long-term liabilities,
and a total deficit of $1.37 billion.
* * *
As reported by the TCR on Jan. 11, 2023, S&P Global Ratings raised
its issuer credit rating on U.S.-based ATM and point-of-sale
provider Diebold Nixdorf Inc. to 'CCC+' from 'SD'. S&P said, "The
positive outlook reflects our expectation that the company's
increased backlog, price increases and cost-cutting efforts coupled
with supply chain efficiencies will materially improve EBITDA
margins and reduce leverage toward the mid-8x area by the end of
2023. We also expect this will improve prospects for growing free
cash flow generation to support FOCF to debt in the
low-single-digit percent area over the next 12 months."
DIOCESE OF ALBANY: US Trustee Uneasy of Diocese's Unsecured Assets
------------------------------------------------------------------
Rick Archer of Law360 reports that the Roman Catholic Diocese of
Albany and the U.S. Trustee's Office told a New York bankruptcy
judge Friday, March 17, 2023, they are in discussions on how best
to secure $48 million of the diocese's investment funds through its
Chapter 11 case.
About the Roman Catholic Diocese of Albany
Roman Catholic Diocese of Albany is a religious organization in
Albany, New York. The Roman Catholic Diocese of Albany covers 13
counties in Eastern New York, including a portion of a 14th county.
Its Mother Church is the Cathedral of the Immaculate Conception in
the city of Albany.
New York's Child Victims Act, which took effect in August 2019,
temporarily sets aside the usual statute of limitations for
lawsuits to give victims of childhood sexual abuse a year to pursue
even decades-old claims. Hundreds of new lawsuits have been filed
against churches and other institutions since the law took effect
Aug. 14, 2019.
Facing the financial weight of new sexual misconduct lawsuits, at
least four of the eight Roman Catholic dioceses in the state, has
already sought Chapter 11 protection. The dioceses that have
declared bankruptcy include the Diocese of Rochester and the
Diocese of Rockville Centre on Long Island.
The Catholic Diocese of Alabany sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. N.D.N.Y. Case No. 23-10244) on
March 15, 2023. In the petition filed by Fr. Robert P. Longobucco,
the Debtor estimated assets between $10 million and $50 million and
liabilities between $50 million and $100 million.
The Debtor is represented by:
Francis J. Brennan, Esq.
Nolan Heller Kauffman LLP
40 North Main street
Albany, NY 12203
DIOCESE OF OAKLAND: May File for Bankruptcy Due to Abuse Claims
---------------------------------------------------------------
Alex Baker of KRON4 reports that the Diocese of Oakland is facing
the possibility of bankruptcy due to child sex abuse claims.
According to a letter, which was addressed to "Parishioners and
Friends," the diocese said it may be facing approximately 330
lawsuits.
"Since the closing of the filing window on Dec. 31, 2022, we have
been informed there may be approximately 330 lawsuits filed against
our diocese," Bishop Michael Barber, SJ, said in a March 16 letter
to parishioners and friends of the Diocese of Oakland, according to
the Catholic News Agency (CNA). "As the court continues to process
the lawsuits, the total magnitude will become clearer. However, it
is increasingly evident we face a monumental challenge."
"I want to let you know the diocese is giving strong consideration
to filing for Chapter 11 bankruptcy," the bishop said. "After much
prayer and thoughtful advice, I believe bankruptcy can provide a
way to support all survivors in their journey toward healing in an
equitable and comprehensive way. It will also allow the diocese to
reorganize our financial affairs so we may continue to fulfill the
sacred mission entrusted to us by Christ and the Church."
THE CNA recounts that the state of California passed legislation
that grants a three-year exemption to the statute of limitations on
sexual abuse lawsuits. The legal window began Jan. 1, 2020, and
ended Jan. 2, 2023.
About Diocese of Oakland
The Diocese of Oakland is a Latin Church ecclesiastical territory
or diocese of the Catholic Church in Northern California. The
diocese comprises Alameda and Contra Costa Counties in the San
Francisco Bay Area.
ENDO INT'L: FTC Asks DC Circuit Not to Prolong Monopoly with Impax
------------------------------------------------------------------
Matthew Perlman of Law360 reports that the Federal Trade Commission
urged the D. C. Circuit not to push back oral argument for the
agency's bid to revive a case accusing Endo and Impax of splitting
monopoly profits for a lucrative opioid, contending that the
alleged conduct needs to be stopped now.
As reported in the TCR, the FTC earlier urged the D. C. Circuit to
overturn a lower court's decision that allowed two pharmaceutical
companies to continue an alleged pay-for-delay agreement, arguing
that the companies are still subject to antitrust scrutiny even if
the agreement was an exclusive patent license.
About Endo International
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
specialty areas. On the Web: http://www.endo.com/
On Aug. 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. A Web site dedicated to the
restructuring is at 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 the
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.
EVERGREEN PROPERTY: Voluntary Chapter 11 Case Summary
-----------------------------------------------------
Debtor: Evergreen Property Group, LLC
5441 Country Club Parkway
San Jose, CA 95138
Chapter 11 Petition Date: March 23, 2023
Court: United States Bankruptcy Court
Northern District of California
Case No.: 23-50311
Debtor's Counsel: Arasto Farsad, Esq.
FARSAD LAW OFFICE, P.C.
1625 The Alameda, Suite 525
San Jose, CA 95126
Tel: 408-641-9966
Email: FarsadLaw1@gmail.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Michael Luu as managing member.
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/YIJPVWI/Evergreen_Property_Group_LLC__canbke-23-50311__0001.0.pdf?mcid=tGE4TAMA
EXCL LOGISTICS: Court OKs Cash Collateral Access Thru April 11
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Western District of Washington,
at Seattle, authorized Excl Logistics, LLC to use cash collateral
on an interim basis in accordance with the budget, with a 15%
variance, through the date of the final hearing set for April 11,
2023 at 9:30 a.m.
As adequate protection for the Debtor's use of cash collateral on
an interim basis, the Court grants TBS Factoring Service, LLC,
Kautilya Capital, LLC Defined Benefit Plan, and Commercial Credit
Group, Inc. replacement liens in the Debtor's post-petition cash,
accounts receivable and inventory, and the proceeds of each of the
foregoing, to the same extent and priority as any duly perfected
and unavoidable liens in cash collateral held by the Secured
Creditors as of the petition date, to the extent that any cash
collateral of the Secured Creditors are actually used by the
Debtor.
As previously reported by the Troubled Company Reporter, the Debtor
requested authority to use cash collateral to pay ordinary and
necessary operating expenses including adequate protection payments
that come due.
Based on a UCC search performed on February 28, 2023, the Debtor
has identified 12 secured creditors with a potential interest in
the Debtor's personal property, more specifically:
-- First Corporate Solutions, as representative for TBS
Factoring Services, LLC,
-- Ernies Fueling Network (Termination filed 03/06/23),
-- Kautilya Capital, LLC,
-- Defined Benefit Plan,
-- Commercial Credit Group, Inc.,
-- Pape Material Handling (Termination filed 03/06/23),
-- Exertion 221 Trust, and
-- Commercial Credit Group, Inc.
As of the petition date, the Debtor had cash on hand of
approximately $5,632; accounts receivable of approximately
$125,466; personal property valued at approximately $10,388; fully
encumbered vehicles valued at approximately $771,233; and free and
clear vehicles valued at approximately $60,000.
A copy of the order is available at https://bit.ly/3netHBz from
PacerMonitor.com.
About Excl Logistics, LLC
Excl Logistics, LLC operates a trucking operation providing freight
carrying and logistic services to its customers from its
headquarters located in Snohomish Washington.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Tex. Case No. 23-10364) on February
27, 2023. In the petition signed by Anil Bhambi, managing member,
the Debtor disclosed up to $1 million in assets and up to $10
million in liabilities.
Judge Christopher M. Alston oversees the case.
Thomas D. Neeleman, Esq., at Neeleman Law Group, P.C., represents
the Debtor as legal counsel.
FARR LABORATORIES: Voluntary Chapter 11 Case Summary
----------------------------------------------------
Debtor: Farr Laboratories, LLC
1750 14th Street
Suite E2
Santa Monica, CA 90404
Chapter 11 Petition Date: March 23, 2023
Court: United States Bankruptcy Court
District of Delaware
Case No.: 23-10347
Judge: Hon. Karen B. Owens
Debtor's Counsel: Daniel K. Astin, Esq.
CIARDI CIARDI & ASTIN
1204 N. King Street
Wilmington, DE 19801
Tel: 302-384-9541
Email: dastin@ciardilaw.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Frederick Reinstein as member.
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/ZGZ5JPQ/Farr_Laboratories_LLC__debke-23-10347__0001.0.pdf?mcid=tGE4TAMA
FIRST REPUBLIC BANK: $30-Bil. Rescue Money Fails to Calm Investors
------------------------------------------------------------------
Max Reyes, Austin Weinstein and Allyson Versprille of Bloomberg
News report that First Republic Bank staved off a potential
collapse after a group of bigger financial firms agreed to park a
combined $30 billion in deposits with the lender. But the cash
injection is only a short-term solution, and investors are
unsatisfied.
The San Francisco-based company will still need to move quickly to
find a way to remain independent, or strike a deal for a takeover.
The deal with the 11 lenders including Bank of America Corp.,
JPMorgan Chase & Co. Citigroup Inc. and Wells Fargo & Co. includes
deposits with an initial term of 120 days.
First Republic shares plummeted 79% this year.
"The market may be interpreting that the $30 billion of new
deposits that are going in may have staved off a depositor run, but
it hasn't added any new equity to the bank," Arthur Wilmarth,
professor emeritus at George Washington University's law school,
said in an interview. "The shareholders know that they are
certainly at risk."
About First Republic
First Republic Bank is a commercial bank and provider of wealth
management services headquartered in San Francisco. It caters to
high-net-worth individuals. It operates 93 offices in 11 states
primarily in New York, California, Massachusetts, and Florida.
CBS News reports that the sudden collapse of Silicon Valley Bank
(SVB) on March 10, 2023, along with New York's Signature Bank two
days later, has shaken investor confidence in regional lenders like
$213 billion First Republic. In particular, concern has focused on
such lenders' uninsured deposits, or account funds exceeding the
Federal Deposit Insurance Corp.'s $250,000 cap.
First Republic Bank on March 16, 2023, received a $30 billion
rescue package from 11 of the biggest U.S. banks in an effort to
prevent its collapse. JPMorgan Chase, Bank of America, Citigroup
and Wells Fargo have agreed to each put $5 billion in uninsured
deposits into First Republic. Meanwhile Morgan Stanley and Goldman
Sachs would deposit $2.5 billion each into the bank. The remaining
$5 billion would consist of $1 billion contributions from BNY
Mellon, State Street, PNC Bank, Truist and US Bank.
The bank's credit rating on March 17, 2023, was downgraded by S&P
Global Ratings, which said the rescue package should ease near-term
liquidity pressures, but "may not solve the substantial business,
liquidity, funding and profitability challenges" that it believes
the San Francisco-based bank is now likely facing.
First Republic has tapped investment bank Lazard Ltd to help it
explore strategic options, the Wall Street Journal reported, citing
people familiar with the matter.
FOREX INC: Gets Initial Order Under CCAA
----------------------------------------
Forex Inc., Forex Amos Inc. and Wawa OSB Inc. filed with the
Commercial Division of the Superior Court of Quebec a motion
pursuant to the Companies' Creditors Arrangement Act and that said
motion was granted on Feb. 7, 2023.
The initial order provides for an initial stay of all proceedings
against the debtors as well as their respective directors and
officers until Feb. 17, 2023, and appoints PricewaterhouseCoopers
Inc., LIT (Claudio Filippone, CPA, CIRP, LIT), as Monitor of the
business and of the financial affairs of the debtors.
A copy of the initial order is available on the Monitor's website
at: https://www.pwc.com/ca/forex.
The Monitor can be reached at:
PricewaterhouseCoopers Inc.
1250 Boulevard Rene-Levesque O
Montreal, QC H3B 4Y1
Claudio Filippone
Tel: 514-205-5671
Email: claudio.filippone@pwc.com
Mark Wong
Tel: 780-441-6805
Email: mark.wong@pwc.com
Counsel for the Monitor:
Norton Rose Fulbright Canada S.E.N.C.R.L., s.r.l.
Bureau 2500, 1, Place Ville Marie
Montreal, Québec, H3B 1R1
Me Luc Morin
Tel 514-847-4860
Email: luc.morin@nortonrosefulbright.com
Me Guillaume Michaud
Tel: 514-847-4417
Email: guillaume.michaud@nortonrosefulbright.com
Me Noah Zucker
Tel: 514-847-6076
Email: noah.zucker@nortonrosefulbright.com
Me Marie-Genevieve Belanger
Tel: 514-847-4653
Email: marie-genevieve.belanger@nortonrosefulbright.com
Forex Inc. produces oriented strand boards, and stud lumber for
clients in North America.
FRANCO'S PAVING: Files Emergency Bid to Use Cash Collateral
-----------------------------------------------------------
Franco's Paving, LLC asks the U.S. Bankruptcy Court for the
Southern District of Texas, Corpus Christi Division, for authority
to use cash collateral and provide adequate protection.
The Debtor requires the use of cash collateral to maintain
operations.
The Debtor also contends there is immediate and irreparable harm to
the estate absent emergency consideration of the relief requested.
The Debtor explains its financial distress was precipitated by the
domino effect caused by COVID-19. As construction came to a
standstill in 2020 in Nueces County, Texas, the Debtor required
additional cash in order to maintain operations, and as a result,
the Debtor entered into several financing arrangements with Charter
Bank and the Small Business Administration and pledged its
equipment and real estate to secure the financing.
Charter Bank asserts an interest in the Debtor's rental receipts on
the Debtor's property in Duval County, Texas, through a recorded
assignment of rents. The SBA asserts an interest in the Debtor's
receivables and cash through a filed UCC-1 Financing Statement. In
order to continue operations as a going-concern, the Debtor
requires the use of cash collateral of both Charter Bank and the
SBA.
As adequate protection for the diminution in value of cash
collateral, the Debtor proposes to (i) provide monthly adequate
protection payments, (ii) maintain the value of its business as a
going-concern, (iii) provide replacement liens upon now owned and
after acquired cash to the extent any diminution in value of cash
collateral, and (iv) provide super priority administrative claims
to the extent any diminution of value of cash collateral.
A copy of the motion is available at https://bit.ly/3K1IbxP from
PacerMonitor.com.
About Franco's Paving LLC
Franco's Paving LLC owns and manages a ready-mix cement production
company in Corpus Christi, Texas. The Debtor also generates income
from the sale from gravel mined from its property located in Duval
County, Texas.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S. D. Tex. Case No. 23-20069) on March 17,
2023. In the petition signed by Isaias Franco, president, the
Debtor disclosed up to $10 million in both assets and liabilities.
Susan Tran Adams, Esq., at Tran Singh, LLP, represents the Debtor
as legal counsel.
FRASIER CONTRACTING: Taps CBIZ Forensic as Forensic Accountant
--------------------------------------------------------------
Frasier Contracting, Inc. seeks approval from the U.S. Bankruptcy
Court for the Middle District of Florida to employ CBIZ Forensic
Consulting Group, LLC to perform forensic accounting and consulting
services to determine the extent and validity of Winter Lake
Apartments, LLC's claim.
The firm will charge an hourly rate of $95 - $400 for services
rendered by the accountant and accounting staff, will seek
reimbursement of out of pocket costs such as computer charges,
copies and postage for the accounting services.
The firm received an initial retainer in the amount of $5,000.
As disclosed in the court filings, the accountant neither
represents nor holds any interest adverse to the Debtor as
Debtor-In-Possession, to its Estate, or to the Debtor’s creditors
in the matters upon which it is to be engaged.
The firm can be reached through:
Kathy Mills, CPA
CBIZ Forensic Consulting Group, LLC
Corporate Center II, 4211 W.
Boy Scout Blvd., Suite 650
Tampa, FL 33607
Tel: 813-594-1400
Email: Kathy.Mills@cbiz.com
About Frasier Contracting
Frasier Contracting Inc. -- https://www.frasiercontracting.com --
is a Florida State Certified Class A general contracting company.
Frasier Contracting filed a petition for relief under Subchapter V
of Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla. Case No.
22-03776) on Sept. 15, 2022. In the petition signed by Matthew
LaForest, president, the Debtor disclosed $1,253,075 in total
assets and $1,025,407 in total liabilities. Amy Denton Mayer has
been appointed as Subchapter V trustee.
Judge Catherine Peek McEwen oversees the case.
The Debtor tapped Buddy D. Ford, PA as bankruptcy counsel; Saunders
Law Group as special counsel; and Hamic, Previte & Sturwold, PA as
accountant.
FRONTLINE MEDICAL: Unsecureds Will Get 13.9% of Claims in 5 Years
-----------------------------------------------------------------
Frontline Medical Services LLC submitted a First Amended Subchapter
V Plan of Reorganization dated March 20, 2023.
On July 15, 2020, Debtor was awarded a contract (the "Contract")
from the Department of Veterans Affairs, Commodities and Services
Acquisition Service (CSAS). On October 14, 2020, the Department of
Veteran Affairs ("VA") sent a termination letter to Debtor
indicating that it was rescinding part of the Contract on the basis
of alleged irregularities in the application process.
This was a Partial Termination for Convenience. As of the Petition
Date, the Debtor had three other contracts with the VA. On February
10, 2023, the contract numbered VA791-17-D-0023 listed in 2.0 of
Schedule G expired and the Debtor is not negotiated an extension.
The Debtor does not believe this will have an impact on its
projections since it only grossed about $5,000.00 per year.
Busch Law is the only party to have filed a claim in the amount of
$265,547.42. In the Busch Law motion for relief from stay, the
Busch Law stated that its claim was $201,224.14 as of the Petition
Date. The claim filed by the Busch Law includes legal fees and
costs associated with the bankruptcy proceeding and the State Court
Action.
Delmer H. Hamilton is Lori Dumler's father. On May 30, 2014, Mr.
Hamilton loaned the Debtor $150,000.00 which the Debtor used as
seed money for operations.
Class 1 consists of those unsecured creditors of the Debtor who
hold Allowed Claims that were either scheduled by the Debtor as
undisputed, or subject to timely filed proofs of claim to which the
Debtor does not successfully object. The Class 1 Claimants are
Busch Law Firm with $265,547.42 claim amount and Delmer H. Hamilton
with $32,646.18 claim amount.
Class 1 shall receive a pro-rata distribution of a variable amount
during the 5 years following the Effective Date of the Plan
("Repayment Term") in an amount equal to 100% of the Debtor's
projected disposable income ("Class 1 Distribution"). Total
distributions to Class 1 over five years are estimated to be
approximately $41,487.98; an approximate 13.9% return. In the event
the Plan is confirmed as a consensual Plan under 11 U.S.C. §
1191(a), Distributions will be made by the Debtor. In the event the
Plan is confirmed as a non-consensual Plan under 11 U.S.C. §
1191(b), the Debtor will pay the Class 1 Distributions to the
Trustee and the Trustee will make the pro-rata distributions to the
holders of allowed Class 1 Claims.
As provided for in the Projections, the Debtor is paying all of its
projected disposable income to its creditors. The Debtor has
established a monthly reserve of $1,000.00 each month for 2023,
2024, and 2025. In years 2026 and 2027, the reserve drops to
$500.00 and is eliminated in 2028. Each January, the Debtor will
distribute to its creditors any amount of unused reserve.
A full-text copy of the First Amended Subchapter V Plan of
Reorganization dated March 20, 2023 is available at
https://bit.ly/42yb4ZT from PacerMonitor.com at no charge.
Attorneys for Debtor:
Steven T. Mulligan, Esq.
Coan, Payton & Payne, LLC
999 18th Street
South Tower, Suite S1500
Denver, CO 80202
Tel: (303) 861-8888
Email: smulligan@cp2law.com
About Frontline Medical Services
Frontline Medical Services, LLC filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. D. Colo. Case No.
22-13411) on Sept. 6, 2022, with between $100,001 and $500,000 in
both assets and liabilities. Joli A. Lofstedt serves as Subchapter
V trustee.
Judge Kimberley H. Tyson oversees the case.
Steven T. Mulligan, Esq., at Coan, Payton & Payne, LLC, is the
Debtor's counsel.
FTX GROUP: SBF Wants Insurance Coverage for Legal Costs
-------------------------------------------------------
Evan Ochsner of Bloomberg Law reports that Sam Bankman-Fried wants
FTX Trading Ltd.'s insurers to help cover costs he has incurred in
at least 16 different legal proceedings, but the bankrupt crypto
exchange has refused to cooperate, his lawyers said.
Bankman-Fried is covered by insurance policies intended to help pay
legal costs incurred in his capacity as the former leader of FTX,
his lawyers said in a Wednesday, March 15, 2023, filing in the US
Bankruptcy Court for the District of Delaware. But the company he
co-founded has declined to pitch in for those costs and declined to
help him obtain court clearance to collect from directors and
officers insurance.
About FTX Group
FTX is the world's second-largest cryptocurrency firm. FTX is a
cryptocurrency exchange built by traders, for traders. FTX offers
innovative products including industry-first derivatives, options,
volatility products and leveraged tokens.
Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that
FTX paused customer withdrawals after it was hit with roughly $5
billion worth of withdrawal requests.
Faced with liquidity issues, FTX on Nov. 9 struck a deal to sell
itself to its giant rival Binance, but Binance walked away from the
deal amid reports on FTX regarding mishandled customer funds and
alleged US agency investigations.
At 4:30 a.m. on Nov. 11, Bankman-Fried ultimately agreed to step
aside, and restructuring vet John J. Ray III was quickly named new
CEO.
FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc.
(d/b/a FTX US), Alameda Research Ltd. and certain affiliated
companies then commenced Chapter 11 proceedings (Bankr. D. Del.
Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022.
Additional entities sought Chapter 11 protection on Nov. 14, 2022.
FTX Trading and its affiliates each listed $10 billion to $50
million in assets and liabilities, making FTX the biggest
bankruptcy filer in the US this year. According to Reuters, SBF
shared a document with investors on Nov. 10, 2022, showing FTX had
$13.86 billion in liabilities and $14.6 billion in assets.
However, only $900 million of those assets were liquid, leading to
the cash crunch that ended with the company filing for bankruptcy.
The Hon. John T. Dorsey is the case judge.
The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel;
Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal
North America, LLC as financial advisor. Kroll is the claims agent,
maintaining the page https://cases.ra.kroll.com/FTX/Home-Index
The Official Committee of Unsecured Creditors tapped Paul Hastings
as counsel, FTI Consulting, Inc., as financial advisor, and
Jefferies LLC as the investment banker. Young Conaway Stargatt &
Taylor LLP is the Committee's Delaware and conflicts counsel.
Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory
T. Donilon, Edward L. Schnitzer, and David M. Banker, is
representing Sam Bankman-Fried in the Chapter 11 cases.
White-collar crime specialist Mark S. Cohen has reportedly been
hired to represent SBF in litigation. Lawyers at Paul Weiss
previously represented SBF but later renounced representing the
entrepreneur due to a conflict of interest.
FTX TRADING: Had $7-Bil. Hole in Balance Sheet When It Filed Ch. 11
-------------------------------------------------------------------
Jeremy Hill of Bloomberg News reports that the FTX crypto empire
had a roughly $6.8 billion gap in its balance sheet when it filed
for bankruptcy last 2022, advisers to the group have determined.
Assets across Sam Bankman-Fried's crypto conglomerate totaled about
$4.8 billion against debts of roughly $11.6 billion when FTX and
affiliates crashed into Chapter 11 protection in November 2022,
according to a presentation filed to the bankruptcy court Friday,
March 17, 2023. Almost all of the debts represent amounts owed to
customers.
The slice of FTX that ran its US-based crypto exchange had $255
million of assets against $342 million of debts, a shortfall of
about $87 million.
About FTX Group
FTX is the world's second-largest cryptocurrency firm. FTX is a
cryptocurrency exchange built by traders, for traders. FTX offers
innovative products including industry-first derivatives, options,
volatility products and leveraged tokens.
Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that
FTX paused customer withdrawals after it was hit with roughly $5
billion worth of withdrawal requests.
Faced with liquidity issues, FTX on Nov. 9 struck a deal to sell
itself to its giant rival Binance, but Binance walked away from the
deal amid reports on FTX regarding mishandled customer funds and
alleged US agency investigations.
At 4:30 a.m. on Nov. 11, Bankman-Fried ultimately agreed to step
aside, and restructuring vet John J. Ray III was quickly named new
CEO.
FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc.
(d/b/a FTX US), Alameda Research Ltd. and certain affiliated
companies then commenced Chapter 11 proceedings (Bankr. D. Del.
Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022.
Additional entities sought Chapter 11 protection on Nov. 14, 2022.
FTX Trading and its affiliates each listed $10 billion to $50
million in assets and liabilities, making FTX the biggest
bankruptcy filer in the US this year. According to Reuters, SBF
shared a document with investors on Nov. 10, 2022, showing FTX had
$13.86 billion in liabilities and $14.6 billion in assets. However,
only $900 million of those assets were liquid, leading to the cash
crunch that ended with the company filing for bankruptcy.
The Hon. John T. Dorsey is the case judge.
The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel;
Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal
North America, LLC as financial advisor. Kroll is the claims agent,
maintaining the page https://cases.ra.kroll.com/FTX/Home-Index
The Official Committee of Unsecured Creditors tapped Paul Hastings
as counsel, FTI Consulting, Inc., as financial advisor, and
Jefferies LLC as the investment banker. Young Conaway Stargatt &
Taylor LLP is the Committee's Delaware and conflicts counsel.
Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory
T. Donilon, Edward L. Schnitzer, and David M. Banker, is
representing Sam Bankman-Fried in the Chapter 11 cases.
White-collar crime specialist Mark S. Cohen has reportedly been
hired to represent SBF in litigation. Lawyers at Paul Weiss
previously represented SBF but later renounced representing the
entrepreneur due to a conflict of interest.
FTX TRADING: Paid SBF, Other Execs $3.2-Bil. Prepetition
--------------------------------------------------------
Vince Sullivan of Law360 reports that bankrupt cryptocurrency
exchange FTX Trading Ltd. said it has identified $3.2 billion in
payments made to its former leadership, including $2.2 billion
transferred to co-founder and former CEO Sam Bankman-Fried, who is
currently under federal indictment for wire and securities fraud.
FTX Trading and its affiliates filed their schedules of assets and
liabilities and statement of financial affairs on March 15, 2023.
About FTX Group
FTX is the world's second-largest cryptocurrency firm. FTX is a
cryptocurrency exchange built by traders, for traders. FTX offers
innovative products including industry-first derivatives, options,
volatility products and leveraged tokens.
Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that
FTX paused customer withdrawals after it was hit with roughly $5
billion worth of withdrawal requests.
Faced with liquidity issues, FTX on Nov. 9 struck a deal to sell
itself to its giant rival Binance, but Binance walked away from the
deal amid reports on FTX regarding mishandled customer funds and
alleged US agency investigations.
At 4:30 a.m. on Nov. 11, Bankman-Fried ultimately agreed to step
aside, and restructuring vet John J. Ray III was quickly named new
CEO.
FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc.
(d/b/a FTX US), Alameda Research Ltd. and certain affiliated
companies then commenced Chapter 11 proceedings (Bankr. D. Del.
Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022.
Additional entities sought Chapter 11 protection on Nov. 14, 2022.
FTX Trading and its affiliates each listed $10 billion to $50
million in assets and liabilities, making FTX the biggest
bankruptcy filer in the US this year. According to Reuters, SBF
shared a document with investors on Nov. 10, 2022, showing FTX had
$13.86 billion in liabilities and $14.6 billion in assets. However,
only $900 million of those assets were liquid, leading to the cash
crunch that ended with the company filing for bankruptcy.
The Hon. John T. Dorsey is the case judge.
The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel;
Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal
North America, LLC as financial advisor. Kroll is the claims agent,
maintaining the page https://cases.ra.kroll.com/FTX/Home-Index
The Official Committee of Unsecured Creditors tapped Paul Hastings
as counsel, FTI Consulting, Inc., as financial advisor, and
Jefferies LLC as the investment banker. Young Conaway Stargatt &
Taylor LLP is the Committee's Delaware and conflicts counsel.
Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory
T. Donilon, Edward L. Schnitzer, and David M. Banker, is
representing Sam Bankman-Fried in the Chapter 11 cases.
White-collar crime specialist Mark S. Cohen has reportedly been
hired to represent SBF in litigation. Lawyers at Paul Weiss
previously represented SBF but later renounced representing the
entrepreneur due to a conflict of interest.
GB SCIENCES: All Three Proposals Passed at Annual Meeting
---------------------------------------------------------
At the Annual Meeting of shareholders of GB Sciences, Inc., the
Shareholders:
(a) elected John Poss, Dr. Andrea Small-Howard, and Edmond
DeFrank as directors for three-year term;
(b) approved an amendment to the Company's articles of
incorporation increasing the number of shares of stock the
Company's Board of Directors is authorized to issue from
600,000,000 shares to 950,000,000 shares; and
(c) ratified the appointment of Assurance Dimensions as the
Company's independent registered public accounting firm for the
fiscal year ended March 31, 2023.
About GB Sciences
Headquartered in Las Vegas, Nevada, GB Sciences, Inc. is a
plant-inspired, biopharmaceutical research and development company
creating patented, disease-targeted formulations of cannabis- and
other plant-inspired therapeutic mixtures for the prescription drug
market through its wholly owned Canadian subsidiary, GbS Global
Biopharma, Inc.
GB Sciences reported a net loss of $530,873 for the year ended
March 31, 2022, compared to a net loss of $3.73 million for the
year ended March 31, 2021. As of Dec. 31, 2022, the Company had
$2.79 million in total assets, $4.40 million in total liabilities,
and a total stockholders' deficit of $1.61 million.
Margate, Florida-based Assurance Dimensions, the Company's auditor
since 2020, issued a "going concern" qualification in its report
dated June 30, 2022, citing that the Company has sustained net
losses since inception, which have caused an accumulated deficit of
$104,580,122 at March 31, 2022. The Company also had a working
capital deficit of $3,607,638 and consumed cash in its operating
activities of $1,866,154 including $87,772 used in discontinued
operations for the year ended March 31, 2022. These factors raise
substantial doubt about the Company's ability to continue as a
going concern.
GLOBAL MIXED: Court OKs Interim Cash Collateral Access
------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Florida,
Gainesville Division, authorized Global Mixed Martial Arts Academy,
LLC to use cash collateral on an interim basis.
The Debtor is permitted to use cash collateral to pay: (a) amounts
expressly authorized by the Court, including payments to the
Subchapter V Trustee; (b) the current and necessary expenses set
forth in the budget; and (c) additional amounts as may be expressly
approved in writing by the U.S. Small Business Administration.
As adequate protection, the Secured Creditor with a security
interest in cash collateral 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 document as may otherwise be required under
applicable non bankruptcy law.
The Debtor is also directed to maintain insurance coverage for its
property in accordance with the obligations under the loan and
security documents with the Secured Creditor.
A copy of the court's order and the Debtor's budget
https://bit.ly/3nbusLL from PacerMonitor.com.
The Debtor projects total expenses, on a monthly basis, as
follows:
$11,966 for March 2023;
$11,966 for April 2023;
$11,966 for May 2023;
$11,966 for June 2023;
$11,966 for July 2023;
$11,966 for August 2023;
$11,966 for September 2023;
$11,966 for October 2023;
$11,966 for November 2023; and
$11,966 for December 2023.
About Global Mixed Martial Arts Academy, LLC
Global Mixed Martial Arts Academy, LLC provides training services
in specialized areas of martial arts. The primary source of revenue
is from memberships fees. The Debtor sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Fla. Case No.
23-10029) on February 21, 2023. In the petition signed by Jason R.
Dodd, president, the Debtor disclosed up to $50,000 in assets and
up to $500,000 in liabilities.
Judge Karen K. Specie oversees the case.
Lisa C. Cohen, Esq., at Ruff & Cohen, P.A., represents the Debtor
as legal counsel.
GRANDOTE INVESTMENTS: Case Summary & Seven Unsecured Creditors
--------------------------------------------------------------
Debtor: Grandote Investments TN LLC
1515 Ashwood Avenue
Nashville, TN 37212
Chapter 11 Petition Date: March 23, 2023
Court: United States Bankruptcy Court
Middle District of Tennessee
Case No.: 23-01052
Judge: Hon. Randal S. Mashburn
Debtor's Counsel: R. Alex Payne, Esq.
DUNHAM HILDEBRAND, PLLC
2416 21st Ave. S. Suite 303
Nashville, TN 37212
Tel: 629-777-6529
Fax: 615 777 3765
Email: alex@dhnashville.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Brian Layton as member.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/OOTRFFI/Grandote_Investments_TN_LLC__tnmbke-23-01052__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's Seven Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Chris Salvado Promissory Note $50,000
110 Cheek Road
Nashville, TN 37205
2. Dale Inc. Labor & Materials $36,804
101 Hailey Drive
Nashville, TN 37204
3. Joseph Wladyka Promissory Note $350,000
7 Club Circle
Monmouth Beach,
NJ 07750
4. Kenneth Shaw, Jr. Promissory Note $250,000
32A Beach Road
Monmouth Beach,
NJ 07750
5. Louis Britt Promissory Note $300,000
6380 Massey Manor Cove
Memphis, TN 38120
6. Midway Supply Deed of Trust Unknown
Company, Inc.
119 Cumberland Street
Ashland City, TN 37015
7. The Cleanup Labor $3,350
Company, LLC
5001 Briarwood Drive
Nashville, TN 37211
HAIRY DEALINGS: Seeks to Hire Latham Luna Eden as Legal Counsel
---------------------------------------------------------------
Hairy Dealings, Inc. seeks approval from the U.S. Bankruptcy Court
for the Middle District of Florida to hire Latham, Luna, Eden &
Beaudine, LLP, as its bankruptcy counsel.
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
disclosure statement and plan of reorganization; and
(c) taking any and all other necessary action incident to the
proper preservation and administration of this estate.
As disclosed in the court filings, Latham Luna represents no
interest adverse to the Debtor or to the estate in matters upon
which it is to be engaged.
The firm will charge $275 to $485 per hour for attorney's services
and $105 per hour for paraprofessional services. Daniel Velasquez,
Esq., the attorney primarily working on this matter, charges $485
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 $21,738.
Justin Luna, Esq., a partner at Latham Luna Eden & Beaudine,
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: jluna@lathamluna.com
About Hairy Dealings
Hairy Dealings, Inc. is a closely held Florida limited liability
company formed in 2019 for the purpose of acquiring and operating a
"Tune Up, The Manly Salon" franchise in Tampa, Florida. The Debtor
offers a unique haircut experience and full menu of modern men's
salon services, which also include complimentary cocktails or beer
with every visit.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 23-00782) on March 1,
2023. In the petition signed by Johnnie R. Tilghman, president, the
Debtor disclosed up to $500,000 in both assets and liabilities.
HIGHLAND CARGO: Case Summary & 10 Unsecured Creditors
-----------------------------------------------------
Debtor: Highland Cargo Inc.
d/b/a Arco AMPM
11237 Parkmead Street
Santa Fe Springs, CA 90670
Chapter 11 Petition Date: March 24, 2023
Court: United States Bankruptcy Court
Central District of California
Case No.: 23-11773
Judge: Hon. Vincent P. Zurzolo
Debtor's Counsel: Michael Jay Berger, Esq.
LAW OFFICES OF MICHAEL JAY BERGER
9454 Wilshire Boulevard, 6th Floor
Beverly Hills, CA 90212
Tel: (310) 271-6223
Fax: (310) 271-9805
Email: michael.berger@bankruptcypower.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Mandeep Singh as president.
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/ZR6Z24I/Highland_Cargo_Inc__cacbke-23-11773__0001.0.pdf?mcid=tGE4TAMA
HOT'Z POWER: Court OKs Cash Collateral Access
---------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas,
Houston Division, authorized Hot'z Power Wash, Inc. to use cash
collateral in accordance with the budget through the date of the
confirmation hearing.
The Internal Revenue Service, Corporation Service Company, as
Representative, and SOS Capital will continue to have the same
liens, encumbrances and security interests in the cash collateral
generated or created post filing, plus all proceeds, products,
accounts, or profits thereof, as existed prior to the filing date.
At a Lender's request, the Debtor will provide copies of all
insurance policies currently in force, and further continue to keep
all of the Lenders' collateral fully insured against all loss,
peril and hazard with substantially similar coverage as in the
past.
The Debtor will keep the Lenders' collateral free and clear of
post-petition liens, encumbrances, and security interests except
for such claims as may accrue but are not currently owed such as ad
valorem and similar taxes; provided, however, that nothing in the
Interim Order will prohibit the Debtor from seeking credit pursuant
to 11 U.S.C. section 364.
A copy of the Court's order is available at https://bit.ly/3FIZfpB
from PacerMonitor.com.
About Hot'z Power Wash, Inc.
Hot'z Power Wash, Inc. is a pressure washing company that
specializes in restaurant Kitchen exhaust systems and has been in
business for over 10 years.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Case No. 23-30749) on March 5,
2023. In the petition signed by James Finney, president, the Debtor
disclosed up to $100,000 in both assets and liabilities.
Judge Eduardo V. Rodriguez oversees the case.
Reese Baker, Esq., at Baker & Associates, represents the Debtor as
legal counsel.
HYSTER-YALE GROUP: Moody's Cuts CFR to B3 & Sr. Secured Debt to B2
------------------------------------------------------------------
Moody's Investors Service downgraded the ratings of Hyster-Yale
Group, Inc., including its corporate family rating to B3 from B2
and its probability of default rating to B3-PD from B2-PD. The
rating agency also downgraded Hyster-Yale's senior secured bank
credit facility rating to B2 from B1. The company's speculative
grade liquidity rating of SGL-2 remained unchanged. The outlook was
changed to stable from negative.
Despite improvement in operating performance during the fourth
quarter of 2022, the downgrade reflects the risk of slowing demand
if macroeconomic conditions worsen combined with the potential for
supply chain and inflationary pressures to persist. These factors
could keep adjusted debt/EBITDA above the 5.5x downgrade factor.
Hyster-Yale's debt/EBITDA was 15.7x at the end of 2022 and its
EBITA/interest expense was negative. Further, while supply chain
issues have begun to normalize, Moody's still expects select
inventory shortages to dampen improvements at least during the
first half of 2023. The downgrade of the senior secured credit
facility to B2 from B1 reflects the downgrade of the CFR by one
notch.
Downgrades:
Issuer: Hyster-Yale Group, Inc.
Corporate Family Rating, Downgraded to B3 from B2
Probability of Default Rating, Downgraded to B3-PD from B2-PD
Backed Senior Secured Bank Credit Facility, Downgraded to B2
(LGD3) from B1 (LGD3)
Outlook Actions:
Issuer: Hyster-Yale Group, Inc.
Outlook, Changed To Stable From Negative
RATINGS RATIONALE
Hyster-Yale's B3 CFR reflects the company's significant exposure to
a single class of products, lift trucks, with about 58% of sales
generated in the Americas. Demand for the company's products and
related accessories is highly cyclical. As such, Hyster-Yale's
revenue and earnings are volatile. The company generates a modest
EBITA margin, typically between 2% and 4% but currently well below
this range due to a difficult supply chain and inflation
environment. Operating cash flow is also volatile, heavily affected
by changes in working capital through cycles. However,
Hyster-Yale's market leadership and investments in technology makes
it well positioned to benefit from long term demand fundamentals in
the lift truck industry. Moody's believes that a confluence of
several factors will be necessary to prevent further delays in
Hyster-Yale's progress to reducing its debt/EBITDA below 5.5x.
These include an easing of supply chain and inflationary pressures,
realization of cost savings benefits, and higher margin lift trucks
work through the backlog in the second half of the year. However,
the aforementioned risks to the downside could dampen this
improvement.
The stable outlook reflects Hyster-Yale's good liquidity and
Moody's expectation that the company's strong backlog will help
support operations even if demand slows.
Hyster-Yale's good liquidity reflects its cash balances of about
$60 million at the end of 2022 and $158 million available under its
US and non-US credit facilities. The company's primary revolving
credit facility is a $300 million asset-based revolving credit
facility that expires in 2026 (about $183 million was available
under this facility at December 31, 2022). Moody's expects that the
company will use much of the free cash flow to repay a portion of
revolver borrowings this year. The company's $222 million of term
loan debt matures in 2028.
The first lien term loan is rated B2, one notch higher than the
CFR, reflecting the loss absorption provided other unsecured
liabilities in the event of default. Higher notching on the term
loan using Moody's Loss Given Default for Speculative-Grade
Companies (LGD) methodology is constrained by the existence of a
$300 million ABL revolver facility that is ranked senior to the
term loan.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings could be downgraded if the company's liquidity erodes.
Ratings could also be downgraded if the company fails to generate
free cash flow to reduce debt/EBITDA to sustainable levels or
EBITA/interest expense remains below 1x. Moody's could upgrade
Hyster-Yale's ratings if the company maintains debt/EBITDA below
5.5x with EBITA/interest expense above 1.5x. The sustainment of
good liquidity, including consistently positive free cash flow,
will also support a ratings upgrade.
Headquartered in Cleveland, Ohio, Hyster-Yale Materials Handling,
Inc., through its operating subsidiary Hyster-Yale Group, Inc. is
an integrated full-line lift truck manufacturer. In addition, the
company produces lift truck attachments, hydrogen fuel cell power
products and provides telematics, automation and fleet management
services, as well as an array of other power options for its lift
trucks. Revenue was approximately $3.5 billion in 2022.
The principal methodology used in these ratings was Manufacturing
published in September 2021.
IEH AUTO PARTS: Committee Taps FTI Consulting as Financial Advisor
------------------------------------------------------------------
The official committee of unsecured creditors of IEH Auto Parts
Holding LLC and its affiliates seeks approval from the U.S.
Bankruptcy Court for the Southern District of Texas to hire FTI
Consulting, Inc. as financial advisor.
The firm's services include:
a. assistance in the review of financial related disclosures
required by the Court, including the Schedules of Assets and
Liabilities, the Statement of Financial Affairs and Monthly
Operating Reports;
b. assistance in the preparation of analyses required to
assess any proposed Debtor-In-Possession (“DIP”) financing or
use of cash collateral;
c. assistance with the assessment and monitoring of the
Debtors' short term cash flow, liquidity, and operating results;
d. assistance with the review of the Debtors' proposed
employee compensation and benefits programs;
e. assistance with the review of the Debtors' potential
disposition or liquidation of both core and non-core assets;
f. assistance with the review of the Debtors' cost/benefit
analysis with respect to the affirmation or rejection of various
executory contracts and leases;
g. assistance with the review of the Debtors' identification
of potential cost savings, including overhead and operating expense
reductions and efficiency improvements;
h. assistance in the review and monitoring of the asset sale
process, including, but not limited to, an assessment of the
adequacy of the marketing process, completeness of any buyer lists,
and review and quantifications of any bids;
i. assistance with review of any tax issues associated with,
but not limited to, claims/stock trading, preservation of net
operating losses, refunds due to the Debtors, plans of
reorganization, and asset sales;
j. assistance in the review of the claims reconciliation and
estimation process;
h. assistance in the review of other financial information
prepared by the Debtors, including, but not limited to, cash flow
projections and budgets, business plans, cash receipts and
disbursement analysis, asset and liability analysis, and the
economic analysis of proposed transactions for which Court approval
is sought;
j. attendance at meetings and assistance in discussions with
the Debtors, potential investors, banks, other secured lenders, the
Committee and any other official committees organized in these
chapter 11 proceedings, the U.S. Trustee, other parties in interest
and professionals hired by the same, as requested;
k. assistance in the review and/or preparation of information
and analysis necessary for the confirmation of a plan and related
disclosure statement in these chapter 11 proceedings;
l. assistance in the evaluation and analysis of avoidance
actions, including fraudulent conveyances and preferential
transfers and otherwise provide litigation support services as
requested by the Committee;
m. assistance in the prosecution of Committee
responses/objections to the Debtors' motions, including attendance
at depositions and provision of expert reports/testimony on case
issues as required by the Committee; and
n. render such other general business consulting or such other
assistance as the Committee or its counsel may deem necessary that
are consistent with the role of a financial advisor and not
duplicative of services provided by other professionals in this
proceeding.
The firm will be paid at these rates:
Senior Managing Directors $1,045 - 1,325
Directors / Senior Directors /
Managing Directors $785 - 1,055
Consultants/Senior Consultants $435 - 750
Administrative / Paraprofessionals $175 - 325
In addition, the firm will seek reimbursement for expenses
incurred.
Matthew Diaz, a senior managing director at FTI, 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:
Matthew Diaz
FTI Consulting, Inc.
1166 Avenue of the Americas, 15th Floor
New York, NY 10036
Telephone: (212) 499 3611
Email: matt.diaz@fticonsulting.com
About IEH Auto Parts Holding
IEH Auto Parts Holding LLC -- https://autoplusap.com/ --
distributes automotive products. It offers equipment, tools,
accessories, paint, and related products in the automotive
aftermarket. Auto Plus serves customers in the United States.
IEH Auto Parts Holding and its affiliates filed a petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Texas
Lead Case No. 23-90054) on Feb. 1, 2023. In the petition filed by
John Michael Neyrey, as chief executive officer, the Debtors
reported assets and liabilities between $100 million and $500
million.
Judge Christopher M. Lopez oversees the cases.
The Debtors are represented by Veronica Ann Polnick, Esq., at
Jackson Walker, LLP.
IEH AUTO PARTS: Committee Taps Kane Russell Coleman as Counsel
--------------------------------------------------------------
The official committee of unsecured creditors of IEH Auto Parts
Holding LLC and its affiliates seeks approval from the U.S.
Bankruptcy Court for the Southern District of Texas to hire Kane
Russell Coleman Logan PC as its counsel.
The firm's services include:
a. preparing and filing the Debtor's schedules and statement
of affairs;
b. representing the Debtor at the meeting of creditors and
confirmation hearing;
c. representing the Debtor in any adversary proceedings and
contested bankruptcy matters that arise in the Debtor's Chapter 11
case;
d. taking all necessary action to protect and preserve the
Debtor's estate, including prosecuting actions on the Debtor's
behalf, defending any actions commenced against the Debtor,
negotiating disputes involving the Debtor, and preparing objections
to claims filed against the Debtor's estate;
e. preparing legal papers;
f. advising and consulting with the Debtor on (i) legal
questions arising in administering and reorganizing its estate and
(ii) the Debtor's rights and remedies in connection with assets of
the estate and claims of creditors;
g. assisting the Debtor in (i) formulating a disclosure
statement and a Chapter 11 plan; (ii) confirming and consummating a
Chapter 11 plan, and (iii) such further actions as may be required
in connection with the administration of the Debtor's estate;
h. if necessary and advisable, taking all appropriate actions
in connection with a sale of the Debtor's assets under Section 363
of the Bankruptcy Code or otherwise;
i. assisting the Debtor in preserving and protecting the value
of the estate;
j. appearing before the bankruptcy court, any appellate courts
and the United States Trustee;
k. investigating and potentially prosecuting preferences,
fraudulent transfers, and other causes of action arising under
Chapter 5 of the Bankruptcy Code on behalf of the Debtor's estate;
and
l. performing other necessary legal services for the Debtor.
The firm will be paid at these hourly rates:
Joseph Coleman (Director) $775
Brian Hail (Director) $745
Michael Ridulfo (Director) $605
John Kane (Director) $580
Brian Clark (Director) $535
Kyle Woodard (Associate) $440
JaKayla DaBera (Associate) $385
Directors $385 - $815
Associates $325 - $580
Paralegals $170 - $290
As disclosed in court filings, Kane is a "disinterested person"
within the meaning of Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Joseph M. Coleman, Esq.
Kane Russell Coleman Logan, PC
Bank of America Plaza
901 Main Street, Suite 5200
Dallas, TX 75202
Telephone: (214) 777-4200
Telecopier: (214) 777-4299
Email: jcoleman@krcl.com
About IEH Auto Parts Holding
IEH Auto Parts Holding LLC -- https://autoplusap.com/ --
distributes automotive products. It offers equipment, tools,
accessories, paint, and related products in the automotive
aftermarket. Auto Plus serves customers in the United States.
IEH Auto Parts Holding and its affiliates filed a petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Texas
Lead Case No. 23-90054) on Feb. 1, 2023. In the petition filed by
John Michael Neyrey, as chief executive officer, the Debtors
reported assets and liabilities between $100 million and $500
million.
Judge Christopher M. Lopez oversees the cases.
The Debtors are represented by Veronica Ann Polnick, Esq., at
Jackson Walker, LLP.
INDEPENDENT PET: Committee Taps Kelley Drye as Lead Counsel
-----------------------------------------------------------
The official committee of unsecured creditors of Independent Pet
Partners Holdings, LLC, and its affiliates seeks approval from the
U.S. Bankruptcy Court for the District of Delaware to hire Kelley
Drye & Warren LLP as its lead counsel.
The firm will render these services:
(a) advise the Committee with respect to its rights, duties
and powers in these cases;
(b) assist and advise the Committee in its consultations with
the Debtors and in connection with the administration of these
cases, the sales of the Debtors' assets, the investigation into
historic conduct and transactions that may provide value for
creditors, and the ultimate wind-down of the Debtors' estates;
(c) assist the Committee in its investigation of the acts,
conduct, assets, liabilities, and financial condition of the
Debtors;
(d) advise and represent the Committee in connection with
matters generally arising in these cases, including the Debtors'
motions to obtain postpetition financing and use cash collateral
and sell substantially all of the Debtors' assets;
(e) appear before this Court, and any other federal or state
court;
(f) prepare, on behalf of the Committee, any pleadings,
including motions, memoranda, complaints, objections, and responses
to any of the foregoing; and
(g) perform such other legal services as may be required or
are otherwise deemed to be in the interests of the Committee in
accordance with the Committee's powers and duties as set forth in
the Bankruptcy Code, Bankruptcy Rules, or other applicable law.
The firm will be paid at these rates:
Partners $800 - $1,445 per hour
Special Counsel $480 - $935 per hour
Associates $500 - $865 per hour
Paraprofessionals $270 - $440 per hour
In addition, the firm will be reimbursed for expenses incurred.
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, Kelley
Drye 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;
-- the firm has not represented the Committee in the 12 months
prepetition; and
-- the Committee has approved the budget and staffing plan for
the first budgeted period from February 16, 2023 through May 31,
2023.
Jason Adams, Esq., a member of Kelley Drye & Warren, 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 S. Carr, Esq.
Jason R. Adams, Esq.
Lauren S. Schlussel, Esq.
Kelley Drye & Warren LLP
3 World Trade Center
175 Greenwich Street
New York, New York 10007
Telephone: (212) 808-7800
Facsimile: (212) 808-7897
Email: jcarr@kelleydrye.com
jadams@kelleydrye.com
lschlussel@kelleydrye.com
About Independent Pet Partners Holdings
Independent Pet Partners Holdings, LLC and various affiliated
entities sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Del. Lead Case No. 23-10153) on February 5, 2023.
In the petition signed by Stephen Coulombe, co-chief restructuring
officer, the Debtor disclosed up to $500 million in both assets and
liabilities.
Independent Pet Partners offers a one-stop pet experience with
healthy, high-quality food products and treats and a range of pet
services, including grooming, self-wash, pet parent education, and
veterinary services. The Debtors also sell goods through their
e-commerce platform with each of the Debtors' banners having its
own standalone website. As of the Petition Date, the Debtors
operated under four unique regional banners: Chuck and Don's,
Kriser's Natural Pet, Loyal Companion, and Natural Pawz.
Judge Laurie Selber Silverstein oversees the case.
The Debtors tapped McDonald Hopkins, LLC as general counsel, Young
Conaway Stargatt and Taylor, LLP as co-counsel, Berkeley Research
Group, LLC as co-chief restructuring officer, Houlihan Lokey
Capital, Inc. as financial advisor and investment banker, and Omni
Agent Solutions as notice, claims, and balloting agent.
CION Investment Corporation; Main Street Capital Corporation; MCS
Income Fund, Inc.; Newstone Capital Partners III, L.P; Newstone
Capital Partners III-A, L.P.; and Newstone Capital Partners III-B,
L.P., as DIP Lenders and Prepetition Lenders, are represented by
Dechert LLP.
Co-counsel to the DIP Lenders and Prepetition Lenders is Richards,
Layton & Finger, P.A.
Acquiom Agency Services, LLC, as administrative and collateral
agent under the DIP facility and as Prepetition ABL Agent, and
Prepetition Priming Agent, is represented by Paul Hastings, LLP.
Wilmington Trust, National Association, as Prepetition DDTL Agent,
is represented by Arnold & Porter Kaye Scholer LLP.
INDEPENDENT PET: Committee Taps Potter Anderson as Delaware Counsel
-------------------------------------------------------------------
The official committee of unsecured creditors of Independent Pet
Partners Holdings, LLC, and its affiliates seeks approval from the
U.S. Bankruptcy Court for the District of Delaware to hire Potter
Anderson & Corroon LLP as its Delaware counsel.
The firm's services include:
a. providing legal advice regarding local rules, practices,
and procedures and providing substantive and strategic advice on
how to accomplish Committee goals, bearing in mind that the
Delaware Bankruptcy Court relies on Delaware counsel such as Potter
Anderson to be involved in all aspects of each bankruptcy
proceeding;
b. drafting, reviewing and commenting on drafts of documents
to ensure compliance with local rules, practices, and procedures;
c. drafting, filing and service of documents as requested by
Kelley Drye & Warren LLP;
d. preparing certificates of no objection, certifications of
counsel, and notices of fee applications;
e. printing of documents and pleadings for hearings, preparing
binders of documents and pleadings for hearings;
f. appearing in Court and at any meetings of creditors on
behalf of the Committee in its capacity as Delaware counsel with
Kelley Drye & Warren LLP;
g. monitoring the docket for filings and coordinating with
Kelley Drye & Warren LLP on pending matters that may need
responses;
h. participating in calls with the Committee;
i. providing additional administrative support to Kelley Drye
& Warren LLP, as requested; and
j. taking on any additional tasks or projects the Committee
may assign.
The firm's hourly rates are:
Partners $675 - $865
Associates $440 - $575
Paraprofessionals $330 - $350
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, Pottter
Anderson 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;
-- the firm has not represented the Committee in the 12 months
prepetition; and
-- the Committee has approved Potter Anderson's proposed
hourly billing rates.
Christopher Samis, Esq., a member of Potter Anderson, 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:
Christopher M. Samis, Esq.
Aaron H. Stulman, Esq.
Elizabeth R. Schlecker, Esq.
1313 North Market Street, 6th Floor
Wilmington, DE 19801
Tel: (302) 984-6000
Fax: (302) 658-1192
Email: csamis@potteranderson.com
astulman@potteranderson.com
eschlecker@potteranderson.com
About Independent Pet Partners Holdings
Independent Pet Partners Holdings, LLC and various affiliated
entities sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Del. Lead Case No. 23-10153) on February 5, 2023.
In the petition signed by Stephen Coulombe, co-chief restructuring
officer, the Debtor disclosed up to $500 million in both assets and
liabilities.
Independent Pet Partners offers a one-stop pet experience with
healthy, high-quality food products and treats and a range of pet
services, including grooming, self-wash, pet parent education, and
veterinary services. The Debtors also sell goods through their
e-commerce platform with each of the Debtors' banners having its
own standalone website. As of the Petition Date, the Debtors
operated under four unique regional banners: Chuck and Don's,
Kriser's Natural Pet, Loyal Companion, and Natural Pawz.
Judge Laurie Selber Silverstein oversees the case.
The Debtors tapped McDonald Hopkins, LLC as general counsel, Young
Conaway Stargatt and Taylor, LLP as co-counsel, Berkeley Research
Group, LLC as co-chief restructuring officer, Houlihan Lokey
Capital, Inc. as financial advisor and investment banker, and Omni
Agent Solutions as notice, claims, and balloting agent.
CION Investment Corporation; Main Street Capital Corporation; MCS
Income Fund, Inc.; Newstone Capital Partners III, L.P; Newstone
Capital Partners III-A, L.P.; and Newstone Capital Partners III-B,
L.P., as DIP Lenders and Prepetition Lenders, are represented by
Dechert LLP.
Co-counsel to the DIP Lenders and Prepetition Lenders is Richards,
Layton & Finger, P.A.
Acquiom Agency Services, LLC, as administrative and collateral
agent under the DIP facility and as Prepetition ABL Agent, and
Prepetition Priming Agent, is represented by Paul Hastings, LLP.
Wilmington Trust, National Association, as Prepetition DDTL Agent,
is represented by Arnold & Porter Kaye Scholer LLP.
INDEPENDENT PET: Committee Taps Province LLC as Financial Advisor
-----------------------------------------------------------------
The official committee of unsecured creditors of Independent Pet
Partners Holdings, LLC, and its affiliates seeks approval from the
U.S. Bankruptcy Court for the District of Delaware to hire
Province, LLC as its financial advisor.
The firm's services include:
a. becoming familiar with and analyzing the Debtors' DIP
budget, assets and liabilities, and overall financial condition;
b. reviewing financial and operational information furnished
by the Debtors;
c. monitoring the sale process, reviewing bidding procedures,
stalking horse bids, asset purchase agreements, interfacing with
the Debtors' professionals, and advising the Committee regarding
the process;
d. evaluating the economic terms of various agreements,
including, but not limited to, the Debtors' KEIP and KERP and
various professional retentions;
e. analyzing the Debtors' proposed business plans;
f. assessing the Debtors' various pleadings and proposed
treatment of unsecured creditor claims therefrom;
g. preparing, analyzing or reviewing as applicable, avoidance
action and claim analyses;
h. assisting the Committee in reviewing the Debtors' financial
reports, including, but not limited to, statements of financial
affairs, schedules of assets and liabilities, DIP budgets, and
monthly operating reports;
i. analyzing potential recoveries with respect to any proposed
plans of reorganization;
j. advising the Committee on the current state of these
chapter 11 cases;
k. advising the Committee in negotiations with the Debtors and
third parties as necessary;
l. if necessary, participating as a witness in hearings before
the Court with respect to matters upon which Province has provided
advice; and
m. other business activities as are approved by the Committee,
the Committee's counsel, and as agreed to by Province.
The firm's hourly rates are:
Managing Directors and Principals $860-$1,350
Vice Presidents, Directors, and Senior Directors $580-$950
Analysts, Associates, and Senior Associates $300-$650
Other / Para-Professional $220-$300
Adam Rosen, a principal with Province, 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:
Adam Rosen
Province, LLC
2360 Corporate Circle, Suite 340
Henderson, NV 89074
Phone: +1 (702) 685-5555
Email: arosen@provincefirm.com
About Independent Pet Partners Holdings
Independent Pet Partners Holdings, LLC and various affiliated
entities sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Del. Lead Case No. 23-10153) on February 5, 2023.
In the petition signed by Stephen Coulombe, co-chief restructuring
officer, the Debtor disclosed up to $500 million in both assets and
liabilities.
Independent Pet Partners offers a one-stop pet experience with
healthy, high-quality food products and treats and a range of pet
services, including grooming, self-wash, pet parent education, and
veterinary services. The Debtors also sell goods through their
e-commerce platform with each of the Debtors' banners having its
own standalone website. As of the Petition Date, the Debtors
operated under four unique regional banners: Chuck and Don's,
Kriser's Natural Pet, Loyal Companion, and Natural Pawz.
Judge Laurie Selber Silverstein oversees the case.
The Debtors tapped McDonald Hopkins, LLC as general counsel, Young
Conaway Stargatt and Taylor, LLP as co-counsel, Berkeley Research
Group, LLC as co-chief restructuring officer, Houlihan Lokey
Capital, Inc. as financial advisor and investment banker, and Omni
Agent Solutions as notice, claims, and balloting agent.
CION Investment Corporation; Main Street Capital Corporation; MCS
Income Fund, Inc.; Newstone Capital Partners III, L.P; Newstone
Capital Partners III-A, L.P.; and Newstone Capital Partners III-B,
L.P., as DIP Lenders and Prepetition Lenders, are represented by
Dechert LLP.
Co-counsel to the DIP Lenders and Prepetition Lenders is Richards,
Layton & Finger, P.A.
Acquiom Agency Services, LLC, as administrative and collateral
agent under the DIP facility and as Prepetition ABL Agent, and
Prepetition Priming Agent, is represented by Paul Hastings, LLP.
Wilmington Trust, National Association, as Prepetition DDTL Agent,
is represented by Arnold & Porter Kaye Scholer LLP.
INTEGRO PARENT: New Mountain Marks $11.5M Loan at 24% Off
---------------------------------------------------------
New Mountain Finance Corporation has marked its $11,510,000 loan
extended to Integro Parent Inc. to market at $8,718,000 or 76% of
the outstanding amount, as of December 31, 2022, according to a
disclosure contained in New Mountain's Form 10-K for the fiscal
year ended December 31, 2022, filed with the Securities and
Exchange Commission on February 27, 2023.
New Mountain is a participant in a Second Lien Loan to Integro
Parent Inc. The loan accrues interest at a rate of 16.83%
(SOFR(Q)(42)*+ 12.25%/Payment In Kind)) per annum. The loan matures
in October 2023.
"During the second quarter of 2022, we placed an aggregate
principal amount of $4.0 million of our second lien position on
non-accrual status. As of December 31, 2022, our position in
Integro on non-accrual status had an aggregate cost basis of $3.9
million, an aggregate fair value of $3.1 million, total unearned
interest income of $0.4 million and total unearned other income of
$0.0 million for the year then ended," New Mountain disclosed.
New Mountain is a Delaware corporation that was originally
incorporated on June 29, 2010 and completed its initial public
offering on May 19, 2011. New Mountain is a closed-end,
non-diversified management Investment Company that has elected to
be regulated as a business development company under the Investment
Company Act of 1940, as amended. New Mountain Finance Advisers BDC,
L.L.C., its Investment Adviser, is a wholly owned subsidiary of New
Mountain Capital Group, L.P. New Mountain Capital is a firm with a
track record of investing in the middle market. New Mountain
Capital focuses on investing in defensive growth companies across
its private equity, credit and net lease investment strategies.
US-based Integro is the holding company parent of Tysers Insurance
Brokers Ltd, a 200-year-old Lloyd's of London specialist broker
that generated revenues of $241 million for the 12 months through
September 2020. Tysers is largely a wholesale broker with local
offices in Asia, Middle East, Australia, Europe, Latin America and
Bermuda.
INTERFACE SECURITY: Main Street Marks $7.3M Loan at 85% Off
-----------------------------------------------------------
Main Street Capital Corporation has marked its $7,313,000 loan
extended to Interface Security Systems, L.L.C to market at
$1,082,000 or 15% of the outstanding amount, as of December 31,
2022, according to a disclosure contained in Main Street's Form
10-K for the fiscal year ended December 31, 2022, filed with the
Securities and Exchange Commission on February 24, 2023.
Main Street is a participant in a Secured Debt to Interface
Security Systems, L.L.C. The loan accrues interest at a rate of
12.07% (L+7%, 1% Payment In Kind) per annum. The loan matures on
August 7, 2023.
Main Street classified the Loan as a non-accrual and non-income
producing investment.
Main Street is a principal investment firm primarily focused on
providing customized debt and equity financing to lower middle
market companies and debt capital to middle market companies.
Interface Security Systems provides cloud-based IP managed security
services.
INVACARE CORP: Committee Taps Jones Walker as Conflicts Counsel
---------------------------------------------------------------
The official committee of unsecured creditors of Invacare
Corporation and its affiliates seeks approval from the U.S.
Bankruptcy Court for the Southern District of Texas to hire Jones
Walker LLP as its conflicts counsel.
The Committee submits that it is necessary to retain Jones Walker
to represent it when a conflict precludes the its general counsel,
Kilpatrick Townsend & Stockton LLP, from representing the
Committee.
The firm will be paid at these hourly rates:
Partners $615 - $1,100
Associates $475 - $650
Paralegals $265 - $350
Joseph E. Bain, Partner $890
John W. Mills, Partner $865
Elizabeth W. De Leon, Associate $475
Olivia K. Greenberg, Associate $495
Michelle Green, Paralegal $270
Jones Walker has advised the Committee that it responds to the
questions set forth in Section D of the Revised UST Guidelines as
follows:
(a) Jones Walker did not agree to any variations from, or
alternatives to, its standard or customary billing arrangements for
this engagement;
(b) No rate for any of the professionals included in this
engagement varies based on the geographic location of the Chapter
11 Cases;
(c) Jones Walker did not represent any member of the Committee
in connection with the Debtors' Chapter 11 Cases prior to its
retention by the Committee;
(d) Jones Walker expects to develop a prospective budget and
staffing plan to comply reasonably with the U.S. Trustee's request
for information and additional disclosures, as to which Jones
Walker reserves all rights; and
(e) The Committee has approved Jones Walker's proposed hourly
billing rates. The Jones Walker attorneys set forth above in
paragraph 17 will be the primary attorneys staffed on the Debtors'
Chapter 11 Cases, subject to modification based on the facts and
circumstances of the Chapter 11 Cases and the needs of the
Committee.
Joseph Bain, a partner of Jones Walker, disclosed in a court filing
that his firm is a "disinterested person" within the meaning of
Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Joseph E. Bain, Esq.
Jones Walker, LLP
Suite 2900, 811 Main St
Houston, TX 77002
Phone: 713-437-1820
Fax: 713-437-1917
Email: jbain@joneswalker.com
About Invacare Corporation
Headquartered in Elyria, Ohio, Invacare Corporation (IVC) is a
leading manufacturer and distributor in its markets for medical
equipment used in non-acute care settings. The company provides
clinically complex medical device solutions for congenital (e.g.,
cerebral palsy, muscular dystrophy, spina bifida), acquired (e.g.,
stroke, spinal cord injury, traumatic brain injury, post-acute
recovery, pressure ulcers) and degenerative (e.g., ALS, multiple
sclerosis, elderly, bariatric) ailments. Invacare employs
approximately 3,400 associates and markets its products in more
than 100 countries around the world.
Invacare Corp. and 2 U.S. subsidiaries sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead Case
No. 23-90068) on January 31, 2023. In the petition signed by
Kathleen Leneghan, senior vice president and chief financial
officer, the Debtor disclosed up to $1 billion in both assets and
liabilities.
The Debtors tapped Kirkland and Ellis, LLP and Kirkland and
International LLP as bankruptcy counsel, McDonald Hopkins, LLC as
bankruptcy co-counsel, Huron Consulting Group as restructuring
advisor, Miller Buckfire and Co. as financial advisor and
investment banker, and Epiq Corporate Restructuring, LLC, as
claims, noticing, and solicitation agent and administrative
advisor. Street Advisory Group, LLC is serving as strategic
communications advisor to the company.
Judge Christopher M. Lopez oversees the cases.
The DIP Term Loan Lenders led by Cantor Fitzgerald Securities, as
administrative agent, and GLAS Trust Corporation Limited, as
collateral agent, have retained Davis Polk & Wardwell LLP, Ducera
Partners, Porter Hedges LLP, Baker & McKenzie LLP, McDermott Will &
Emery LLP, Shipman & Goodwin LLP as advisors.
PNC Bank, National Association, and the ABL DIP Lenders, have
retained Blank Rome LLP, and B. Riley Advisory Services as
advisors.
Brown Rudnick LLP is serving as legal counsel and GLC Advisors &
Co., LLC is serving as investment banker to the ad hoc committee of
unsecured notes.
The U.S. Trustee for Region 7 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases. The
committee is represented by Kilpatrick Townsend & Stockton, LLP.
INVACARE CORP: Committee Taps Kilpatrick Townsend as Counsel
------------------------------------------------------------
The official committee of unsecured creditors of Invacare
Corporation and its affiliates seeks approval from the U.S.
Bankruptcy Court for the Southern District of Texas to hire
Kilpatrick Townsend & Stockton LLP as its attorneys.
The firm's services include:
a) rendering legal advice regarding the Committee's
organization, duties and powers in these cases;
b) assisting the Committee in its investigation of the acts,
conduct, assets, liabilities and financial condition of the Debtors
and participating in and reviewing any proposed asset sales or
dispositions, and any other matters relevant to these cases;
c) attending telephonic meetings of the Committee and meetings
with the Debtors and secured creditors, and their attorneys and
other professionals, and participating in negotiations with these
parties, as requested by the Committee;
d) taking all necessary action to protect and preserve the
interests of the Committee, including possible prosecution of
actions on its behalf and investigations concerning litigation in
which the Debtors are involved;
e) assisting the Committee in the review, analysis, and
negotiation of any postpetition financing/use of cash collateral,
other than with respect to the ABL portion of such financing;
f) assisting the Committee with respect to communications with
the general unsecured creditor body about significant matters in
these cases;
g) reviewing and analyzing claims filed against the Debtors'
estates;
h) representing the Committee in hearings before the Court,
appellate courts, and other courts in which matters may be heard,
and representing the interests of the Committee before those courts
and before the U.S. Trustee;
i) assisting the Committee in preparing all necessary motions,
applications, responses, reports and other pleadings in connection
with the administration of these cases, including with respect to
the Debtors' Restructuring Support Agreement and the related
proposed rights offering and Backstop Commitment Agreement;
j) assisting the Committee in the review, formulation,
analysis, and negotiation of any plan(s) of reorganization and
accompanying disclosure statement(s); and
k) providing such other legal assistance as the Committee may
deem necessary and appropriate.
The firm will be paid at these rates:
Partners $575 - $1,390 per hour
Associates $395 - $930 per hour
Paralegals $245 - $485 per hour
Todd C. Meyers, Esq. $1,295 per hour
Paul M. Rosenblatt, Esq. $1,185 per hour
James R. Risener, Esq. $625 per hour
In accordance with Appendix B-Guidelines for reviewing fee
applications filed by attorneys in larger Chapter 11 cases,
Kilpatrick disclosed that:
-- Todd C. Meyers' hourly rate was reduced from $1385 to $1295
as an accommodation to the Committee;
-- none of the professionals included in the engagement vary
their rate based on the geographic location of the bankruptcy
case;
-- the firm has not represented the committee in the 12 months
prior to the Chapter 11 filing; and
-- the firm intends to prepare a budget and staffing plan and
will seek approval of such by the committee.
Todd Meyers, Esq., a partner at Kilpatrick, disclosed in court
filings that his firm is a "disinterested person" as defined in
Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Todd C. Meyers, Esq.
Kilpatrick Townsend & Stockton LLP
1100 Peachtree Street NE Suite 2800
Atlanta, GA 30309
Tel: 404-815-6482
Fax: 404-541-3307
Email: tmeyers@kilpatricktownsend.com
About Invacare Corporation
Headquartered in Elyria, Ohio, Invacare Corporation (IVC) is a
leading manufacturer and distributor in its markets for medical
equipment used in non-acute care settings. The company provides
clinically complex medical device solutions for congenital (e.g.,
cerebral palsy, muscular dystrophy, spina bifida), acquired (e.g.,
stroke, spinal cord injury, traumatic brain injury, post-acute
recovery, pressure ulcers) and degenerative (e.g., ALS, multiple
sclerosis, elderly, bariatric) ailments. Invacare employs
approximately 3,400 associates and markets its products in more
than 100 countries around the world.
Invacare Corp. and 2 U.S. subsidiaries sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead Case
No. 23-90068) on January 31, 2023. In the petition signed by
Kathleen Leneghan, senior vice president and chief financial
officer, the Debtor disclosed up to $1 billion in both assets and
liabilities.
The Debtors tapped Kirkland and Ellis, LLP and Kirkland and
International LLP as bankruptcy counsel, McDonald Hopkins, LLC as
bankruptcy co-counsel, Huron Consulting Group as restructuring
advisor, Miller Buckfire and Co. as financial advisor and
investment banker, and Epiq Corporate Restructuring, LLC, as
claims, noticing, and solicitation agent and administrative
advisor. Street Advisory Group, LLC is serving as strategic
communications advisor to the company.
Judge Christopher M. Lopez oversees the cases.
The DIP Term Loan Lenders led by Cantor Fitzgerald Securities, as
administrative agent, and GLAS Trust Corporation Limited, as
collateral agent, have retained Davis Polk & Wardwell LLP, Ducera
Partners, Porter Hedges LLP, Baker & McKenzie LLP, McDermott Will &
Emery LLP, Shipman & Goodwin LLP as advisors.
PNC Bank, National Association, and the ABL DIP Lenders, have
retained Blank Rome LLP, and B. Riley Advisory Services as
advisors.
Brown Rudnick LLP is serving as legal counsel and GLC Advisors &
Co., LLC is serving as investment banker to the ad hoc committee of
unsecured notes.
The U.S. Trustee for Region 7 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases. The
committee is represented by Kilpatrick Townsend & Stockton, LLP.
INVACARE CORPORATION: Committee Taps Province as Financial Advisor
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The official committee of unsecured creditors of Invacare
Corporation and its affiliates seeks approval from the U.S.
Bankruptcy Court for the Southern District of Texas to hire
Province, LLC as its financial advisor.
The firm's services include:
(a) becoming familiar with and analyzing the Debtors' budget,
assets and liabilities, and overall financial condition;
(b) reviewing financial and operational information furnished
by the Debtors;
(c) monitoring the sale process, reviewing bidding procedures,
stalking horse bids, asset purchase agreements, interfacing with
the Debtors' professionals, and advising the Committee regarding
the process;
(d) scrutinizing the economic terms of various agreements,
including, but not limited to, the Debtors' KEIP and KERP and
various professional retentions;
(e) analyzing the Debtors' proposed business plans and
developing alternative scenarios, if necessary;
(f) assessing the Debtors' various pleadings and proposed
treatment of unsecured creditor claims therefrom;
(g) preparing, or reviewing as applicable, avoidance action
and claim analyses;
(h) assisting the Committee in reviewing the Debtors'
financial reports, including, but not limited to, statements of
financial affairs, schedules of assets and liabilities, and monthly
operating reports;
(i) advising the Committee on the current state of these
chapter 11 cases;
(j) advising the Committee in negotiations with the Debtors
and third parties as necessary;
(k) if necessary, participating as a witness in hearings
before the Court with respect to matters upon which Province has
provided advice; and
(l) other activities as are approved by the Committee, the
Committee's counsel, and as agreed to by Province.
(m) perform such other services as may be required or are
otherwise deemed to be in the interests of the Committee in
accordance with the Committee's powers and duties as set forth in
the Bankruptcy Code, Bankruptcy Rules or other applicable law.
Province will be paid at these hourly rates:
Managing Directors and Principals $860 - $1,350
Vice Presidents, Directors,
and Senior Directors $580 - $950
Analysts, Associates,
and Senior Associates $300 - $650
Other / Para-Professional $220 - $300
Adam Rosen, a principal with Province, 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:
Adam Rosen
Province, LLC
2360 Corporate Circle, Suite 340
Henderson, NV 89074
Phone: +1 (702) 685-5555
Email: arosen@provincefirm.com
About Invacare Corporation
Headquartered in Elyria, Ohio, Invacare Corporation (IVC) is a
leading manufacturer and distributor in its markets for medical
equipment used in non-acute care settings. The company provides
clinically complex medical device solutions for congenital (e.g.,
cerebral palsy, muscular dystrophy, spina bifida), acquired (e.g.,
stroke, spinal cord injury, traumatic brain injury, post-acute
recovery, pressure ulcers) and degenerative (e.g., ALS, multiple
sclerosis, elderly, bariatric) ailments. Invacare employs
approximately 3,400 associates and markets its products in more
than 100 countries around the world.
Invacare Corp. and 2 U.S. subsidiaries sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead Case
No. 23-90068) on January 31, 2023. In the petition signed by
Kathleen Leneghan, senior vice president and chief financial
officer, the Debtor disclosed up to $1 billion in both assets and
liabilities.
The Debtors tapped Kirkland and Ellis, LLP and Kirkland and
International LLP as bankruptcy counsel, McDonald Hopkins, LLC as
bankruptcy co-counsel, Huron Consulting Group as restructuring
advisor, Miller Buckfire and Co. as financial advisor and
investment banker, and Epiq Corporate Restructuring, LLC, as
claims, noticing, and solicitation agent and administrative
advisor. Street Advisory Group, LLC is serving as strategic
communications advisor to the company.
Judge Christopher M. Lopez oversees the cases.
The DIP Term Loan Lenders led by Cantor Fitzgerald Securities, as
administrative agent, and GLAS Trust Corporation Limited, as
collateral agent, have retained Davis Polk & Wardwell LLP, Ducera
Partners, Porter Hedges LLP, Baker & McKenzie LLP, McDermott Will &
Emery LLP, Shipman & Goodwin LLP as advisors.
PNC Bank, National Association, and the ABL DIP Lenders, have
retained Blank Rome LLP, and B. Riley Advisory Services as
advisors.
Brown Rudnick LLP is serving as legal counsel and GLC Advisors &
Co., LLC is serving as investment banker to the ad hoc committee of
unsecured notes.
The U.S. Trustee for Region 7 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases. The
committee is represented by Kilpatrick Townsend & Stockton, LLP.
JBM SPECIALTIES: Case Summary & Seven Unsecured Creditors
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Debtor: JBM Specialties, LLC
319 Triangle Road
Valley View, TX 76272
Business Description: The Debtor is in the beverage manufacturing
business.
Chapter 11 Petition Date: March 23, 2023
Court: United States Bankruptcy Court
Eastern District of Texas
Case No.: 23-40497
Debtor's Counsel: Robert T. DeMarco, Esq.
DEMARCO MITCHELL, PLLC
1255 West 15th St., 805
Plano, TX 75075
Tel: (972) 578-1400
Email: robert@demarcomitchell.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Les Beasley as president.
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/2VTNCXQ/JBM_Specialties_LLC__txebke-23-40497__0001.0.pdf?mcid=tGE4TAMA
JONATHAN RON: Case Summary & 14 Unsecured Creditors
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Debtor: Jonathan Ron, Inc.
f/k/a Jonathan Ron Brielle, Inc.
f/k/a Jonathan Ron Circle, Inc.
d/b/a Jonathan Ron Liquors
d/b/a JR's Bev. Co.
1801 Highway 35 North
Wall, NJ 07719
Chapter 11 Petition Date: March 24, 2023
Court: United States Bankruptcy Court
District of New Jersey
Case No.: 23-12418
Debtor's Counsel: Eugene D. Roth, Esq.
LAW OFFICE OF EUGENE D. ROTH
2520 Highway 35, Suite 307
Manasquan, NJ 08736
Tel: 732-292-9288
Fax: 732-292-9303
Email: erothesq@gmail.com
Total Assets: $5,196,587
Total Liabilities: $1,151,045
The petition was signed by Dilip M. Shah as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 14 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/CCRJ3HY/Jonathan_Ron_Inc__njbke-23-12418__0001.0.pdf?mcid=tGE4TAMA
KAMC HOLIDNGS: New Mountain Marks $18.7M Loan at 15% Off
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New Mountain Finance Corporation has marked its second $18,750,000
loan extended to KAMC Holdings, Inc. to market at $15,937,000 or
85% of the outstanding amount, as of December 31, 2022, according
to a disclosure contained in New Mountain's Form 10-K for the
fiscal year ended December 31, 2022, filed with the Securities and
Exchange Commission on February 27, 2023.
New Mountain is a participant in a Second Lien Loan to KAMC
Holdings, Inc. The loan accrues interest at a rate of 12.65%
(L(Q)+8%) per annum. The loan matures in August 2027.
New Mountain is a Delaware corporation that was originally
incorporated on June 29, 2010 and completed its initial public
offering on May 19, 2011. New Mountain is a closed-end,
non-diversified management Investment Company that has elected to
be regulated as a business development company under the Investment
Company Act of 1940, as amended. New Mountain Finance Advisers BDC,
L.L.C., its Investment Adviser, is a wholly owned subsidiary of New
Mountain Capital Group, L.P. New Mountain Capital is a firm with a
track record of investing in the middle market. New Mountain
Capital focuses on investing in defensive growth companies across
its private equity, credit and net lease investment strategies.
KAMC Holdings, Inc. was created to facilitate the buyout of
Franklin Energy Services, LLC by ABRY Partners.
KAMC HOLIDNGS: New Mountain Marks $18.7M Loan at 15% Off
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New Mountain Finance Corporation has marked its first $18,750,000
loan extended to KAMC Holdings, Inc. to market at $15,938,000 or
85% of the outstanding amount, as of December 31, 2022, according
to a disclosure contained in New Mountain's Form 10-K for the
fiscal year ended December 31, 2022, filed with the Securities and
Exchange Commission.
New Mountain is a participant in a Second Lien Loan to KAMC
Holdings, Inc. The loan accrues interest at a rate of 12.65% (L
(Q)+8%) per annum. The loan matures in August 2027.
New Mountain is a Delaware corporation that was originally
incorporated on June 29, 2010 and completed its initial public
offering on May 19, 2011. New Mountain is a closed-end,
non-diversified management Investment Company that has elected to
be regulated as a business development company under the Investment
Company Act of 1940, as amended. New Mountain Finance Advisers BDC,
L.L.C., its Investment Adviser, is a wholly owned subsidiary of New
Mountain Capital Group, L.P. New Mountain Capital is a firm with a
track record of investing in the middle market. New Mountain
Capital focuses on investing in defensive growth companies across
its private equity, credit and net lease investment strategies.
KAMC Holdings, Inc. was created to facilitate the buyout of
Franklin Energy Services, LLC by ABRY Partners.
KANSAS CITY RVS: Has Final OK on Cash Collateral Access
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The U.S. Bankruptcy Court for the Western District of Missouri
authorized Kansas City RVs, LLC to continue using cash collateral
on an final basis in accordance with the budget.
The Debtor requires the use of cash collateral to pay its operating
and business expenses.
While the Debtor has not fully analyzed all of its creditors'
liens, the Debtor does believe Legacy Bank and Trust holds duly
perfected liens on the Debtor's accounts receivable, inventory, and
accounts.
The Debtor is indebted to Legacy Bank and Trust, which asserts a
security interest in and liens upon Debtor's assets.
Legacy Bank and Trust claims a secured interest in cash collateral
of the Debtor by virtue of Liens filed on various dates.
The Debtor will make these adequate protection payments:
a. Legacy Bank and Trust, $500 a month beginning February 28,
2023 and the 28th of each month until further Court Order; and
b. NBKC, regular monthly mortgage payment of $1550.
Legacy Bank and Trust is granted replacement security interests in,
and liens on, all post-Petition Date acquired property of the
Debtor and the Debtor's bankruptcy estate that is the same type of
property that Legacy Bank and Trust hold a pre-petition interest,
lien or security interest to the extent of the validity and
priority of such interests, liens, or security interests. The
amount of each of the Replacement Liens will be up to the amount of
any diminution of Legacy Bank and Trust's Collateral positions from
the Petition Date. The priority of the Replacement Liens will be in
the same priority as Legacy Bank and Trust's pre-petition
interests, liens and security interests in similar property.
To the extent that the Replacement Liens prove inadequate to
protect Legacy Bank and Trust from a demonstrated diminution in
value of Collateral positions from the Petition Date, Legacy Bank
and Trust is granted an administrative expense claim under Code
section 503(b) with priority in payment under Code section 507(b).
A copy of the order is available at https://bit.ly/3z4oZJw from
PacerMonitor.com.
About Kansas City RVs, LLC
Kansas City RVs, LLC is in the business of recreational vehicle
sales and services.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Mo. Case No. 23-40026) on January 9,
2023. In the petition signed by JE Cornwell, president, the Debtor
disclosed $256,500 in assets and $2,002,880 in liabilities.
Judge Cynthia A. Norton oversees the case.
Colin Gotham, Esq., at Evans & Mullinix, P.A., is the Debtor's
legal counsel.
KCW GROUP: Files Emergency Bid to Use Cash Collateral
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KCW Group, LLC asks the U.S. Bankruptcy Court for the Southern
District of Texas, Houston Division, for authority to use cash
collateral on an emergency basis.
The Debtor requires the emergency use of cash collateral in the
amount of $20,036 for the next 21 days to meet payroll and expenses
to continue its business operations. The majority of these funds
are for payroll, payroll taxes and benefits, insurance, and
continuing expenses. The anticipated income for this period is
$32,467. In addition, the Debtor requires the use of cash
collateral on a monthly basis.
On July 19, 2018, the Debtor executed a Promissory Note in the
original principal amount of $1.750 million payable to Allegiance
Bank. The Note was payable in equal monthly installments of $12,118
per month with interest at the rate of 5.5%. The Debtor also has a
line of credit with Allegiance bank in the amount of $225,000
payable in equal monthly payments of $1,200.
The Note is secured by a blanket lien on all of the Debtor's assets
by virtue of a UCC-1 Financing Statement filed with the Texas
Secretary of State on December 3, 2018. It is also secured by a
deed of trust lien on the Debtor's property located at 6303 Beverly
Hill St., Houston, Texas 77057.
The current balance due on the Note is approximately $1.6 million.
However, the last check sent to Allegiance Bank was returned,
uncashed, with no explanation. The Debtor has received notice of
default letters from Texas Capital Loans, LLC, purportedly to
collect on the LOC and Mortgage debt but has never received any
notice that the loan was sold. Further, nothing has been filed in
the real property records of Harris County, Texas, or with the
Texas Secretary of State evidencing a sale of the Note or LOC.
In approximately May 2022, the Debtor obtained a loan from AFR
Financial in the amount of $190,000. The ARF Loan is payable in
weekly installments in the amount of $3,500, with interest at a
variable weekly interest rate of 1.1238% to 0.0108%. Payments on
the ARF Loan were originally drafted directly from the Debtor's
account at PNC Bank.
The ARF Loan is purportedly secured by a blanket lien on all of the
Debtor's assets by virtue of a UCC-1 Financing Statement filed by
Timberland Bank with the Texas Secretary of State on May 24, 2022.
On August 3, 2021, a UCC-1 Financing Statement was filed by First
Corporate Solutions, as Representative, claiming a blanket lien on
all of the Debtor's assets.
The Debtor did not takeout any loans in August 2021, and has no
knowledge regarding the secured party purportedly represented by
First Corporate Solutions.
The Debtor believes the real property located at 6303 Beverly Hill
St., Houston, Texas 77057 is valued at approximately $5 million.
The Debtor is in the process of obtaining a commercial appraisal of
the Property to ascertain the value. Given the amount of equity in
the Property, the Debtor believes the equity cushion is sufficient
to adequately protect the secured interest of Allegiance Bank/Texas
Capital Loans.
As adequate protection, the Debtor proposes that Allegiance
Bank/Texas Capital Loans will have valid, post-petition replacement
liens equal in validity and priority to those held pre-petition
provided that (a) such liens and security interest are prior to
other prepetition liens and security interests, valid, perfected,
not adequately protected, and non-avoidable in accordance with
applicable law; (b) the quarterly fees payable to the United States
Trustee pursuant to 28 U.S.C. section 1930; and, (c) a carve out
for attorney's fees in the amount of $1,000 per month.
A copy of the motion is available at https://bit.ly/40rBTNk from
PacerMonitor.com.
About KCW Group, LLC
KCW Group, LLC owns and operates a large facility for weddings,
quincineras and other events for residents in Houston and the
surrounding areas.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Case No. 23-30988) on March 22,
2023. In the petition signed by Edward Schulenburg, Jr., the Debtor
disclosed up to $10 million in both assets and liabilities.
Julie M. Koenig, Esq., at Cooper & Scully, P.C., represents the
Debtor as legal counsel.
KJ TRADE: Seeks Cash Collateral Access
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KJ Trade Ltd Inc. asks the U.S. Bankruptcy Court for the Northern
District of Georgia, Atlanta Division, for authority to use cash
collateral in accordance with the budget, with a 15% variance.
The Debtor must have access to cash to pay the operating expenses
of the Business.
Magoo Financial, the U.S. Small Business Administration, Shopify
Capital Inc., Corporation Service Company, as representative, CT
Corporation System, as representative, AJ Equity Group, LLC,
Redstone Advance, and First Corporate Solutions as representative
assert a lien or security interest in the Debtor's cash
collateral.
The SBA asserts a first priority lien on the Debtor's cash
collateral pursuant to a pre-petition loan in the amount of
approximately $1.5 million.
On the Filing Date, the Debtor had little to no cash on hand due to
collection efforts by creditors that froze the Debtor's ability to
obtain funds. The prepetition collection efforts represent a
quintessential race to dismantle the Debtor. However, in
bankruptcy, the Debtor will be able to provide an equitable result
for creditors in accordance with the priority of claims as
established by the Bankruptcy Code. The Debtor has approximately
$500,000 of inventory based on a retail value.
A copy of the Debtor's motion and budget is available at
https://bit.ly/3z4y0Cq from PacerMonitor.com.
The Debtor projects total operating expenses, on a weekly basis, as
follows:
$152,077 for the week starting March 27, 2023;
$120,697 for the week starting April 3, 2023;
$120,697 for the week starting April 10, 2023;
$120,697 for the week starting April 17, 2023;
$120,697 for the week starting April 24, 2023; and
$120,697 for the week starting May 1, 2023.
About KJ Trade Ltd Inc.
KJ Trade Ltd Inc. is an affordable, luxury lifestyle women's
swimwear e-commerce brand doing business as Matte Collection.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ga. Case No. 23-51681) on February 21,
2023. In the petition signed by Justinz Wilkerson, chief executive
officer, the Debtor disclosed up to $500,000 in assets and up to
$10 million in liabilities.
Leslie M. Pineyro, Esq., at Jones & Waldern LLC, represents the
Debtor as legal counsel.
LAKE DISTRICT: Case Summary & 20 Largest Unsecured Creditors
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Debtor: The Lake District, LLC
3536 Canada Road
Lakeland, TN 38002
Business Description: Lake District is a retail and residential
development in Lakeland, TN.
Chapter 11 Petition Date: March 24, 2023
Court: United States Bankruptcy Court
Western District of Tennessee
Case No.: 23-21496
Judge: Hon. Jennie D. Latta
Debtor's Counsel: Michael P. Coury, Esq.
GLANKLER BROWN PLLC
6000 Poplar Ave
Suite 400
Memphis, TN 38119
Tel: 901-525-1322
Fax: 901-525-2389
Email: mcoury@glankler.com
Total Assets: $80,244,507
Total Liabilities: $47,247,115
The petition was signed by Yehuda Netanel as manager.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/XMVTUFY/The_Lake_District_LLC__tnwbke-23-21496__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. A2H Engineers Trade Debt $27,911
3009 Davies
Plantation Road
Lakeland, TN 38002
2. Activate IV Tenant $41,141
1589 Appling Road Improvement
Cordova, TN 38016 Allowance
3. Albright Broker $20,832
Investments, LLC Commissions
2171 Judicial Drive,
Suite 120
Germantown, TN 38183
4. Carr Real Estate Broker $11,442
Brokerage Commission
12820 Lynnfield Road
Englewood, CO 80112
5. Chosen Lines Boutique Tenant $42,527
739 Fairway Drive Improvement
Covington, TN 38019 Allowance
6. Economics Erosion Control Trade Debt $89,799
7272 Louella Avenue
Arlington, TN 38002
7. Ella & Leah Fitness, LLC Tenant $37,575
d/b/a Stretch Lab Lakeland Improvement
5841 Burlington Lane Allowance
Attn. Jason McAllister
Olive Branch, MS 38654
8. Erik Gonzalez Counterclaim $0
1718 Madison Avenue
Memphis, TN 38104
9. Fossett Paving Company Trade Debt $114,583
115 Cowan Road
Collierville, TN 38017
10. Frida's Express, Inc. Counterclaim $0
1718 Madison Avenue
Memphis, TN 38104
11. Gilad Development Loans $2,674,510
Corporation
5959 Topanga
Canyon Road, Ste. 375
Woodland Hills, CA 91367
12. Gipson Mechanical Roof Top HVAC $52,720
Contractors and Installation
6863 East Raleigh
LaGrange Road
Memphis, TN 38134
13. Gloss Nail Bar, LLC Tenant $307,840
561 Erin Drive Improvement
Memphis, TN 38117 Allowance
14. Grinder & Haizlip Trade Debt $63,155
Construction
1746 Thomas Road
Memphis, TN 38134
15. Hollywood Feed, LLC Tenant $36,000
1341 Warford Street Improvement
Memphis, TN 38108 Allowance
16. Kardoush, LLC Tenant $146,140
7730 Poplar Avenue, Improvement
Suite 5 Allowance
Germantown, TN
38138-3948
17. Lakefront Wellness, LLC Tenant $38,920
10509 Riley River Improvement
Road Allowance
Lakeland, TN 38002
18. Pyramid Electric, Inc. Trade Debt $105,356
7555 Appling Center Drive
Memphis, TN 38133
19. TLN Group, LLC Tenant $25,000
10004 Quaking Lane Improvement
Lakeland, TN 38002 Allowance
20. VC Restaurant, LLC Tenant $136,875
8323 Saint Ives Cove Improvement
Cordova, TN 38016 Allowance
LIFE BY ALICE: Seeks to Hire Rountree Leitman as Legal Counsel
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Life by Alice, LLC seeks approval from the U.S. Bankruptcy Court
for the Northern District of Georgia to hire Rountree, Leitman,
Klein & Geer, LLC as its legal counsel.
The firm's services include:
(a) advising the Debtor regarding its powers and duties in the
management of its property;
(b) preparing legal papers;
(c) assisting in the examination of claims of creditors;
(d) assisting in the formulation and preparation of a
disclosure statement and plan of reorganization, and with the
confirmation and consummation thereof; and
(e) other necessary legal services.
The hourly rates of the firm's attorneys and staff are as follows:
Attorneys
William A. Rountree $595
Will B. Geer $595
Michael Bargar $595
Hal Leitman $425
David S. Klein $495
Alexandra Dishun $425
Elizabeth Childers $395
Ceci Christy $425
Caitlyn Powers $325
Paralegals
Elizabeth Miller $250
Sharon M. Wenger $225
Megan Winokur $175
Catherine Smith $150
The firm received a pre-bankruptcy retainer of $50,000 from the
Debtor.
William Rountree, Esq., a partner at Rountree Leitman Klein & Geer,
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:
Will B. Geer, Esq.
Rountree Leitman Klein & Geer, LLC
Century Plaza I
2987 Clairmont Road, Suite 350
Atlanta, GA 30329
Telephone: (404) 584-1238
Facsimile: (404) 704-0246
Email: wgeer@rlkglaw.com
About Life by Alice, LLC
Life by Alice, LLC sought protection for releif under Chapter 11 of
the Bankruptcy Code (Bankr. N.D. Ga. Case No. 23-51225) on Feb. 6,
2023, listing $500,001 to $1 million in both assets and
liabilities. Will B. Geer, Esq. at Rountree, Leitman, Klein & Geer,
LLC represents the Debtor as counsel.
LIFEHOPE EQUIPMENT: In Chapter 11 to Stop Foreclosure
-----------------------------------------------------
Lifehope Equipment Leasing LLC filed for chapter 11 protection in
the Northern District of Georgia.
According to court filings, Lifehope Equipment Leasing estimates
between $1 million and $10 million in debt owed to 1 to 49
creditors. The petition states that funds will be available to
unsecured creditors.
SouthPoint Bank has filed an objection to the Debtor's motion to
extend its deadline to file its schedules of assets and liabilities
and statement of financial affairs.
SouthPoint notes that this case was filed on the eve of state court
personal property foreclosure proceedings, by which SouthPoint
sought to exercise rights regarding its equipment collateral, which
SouthPoint believes constitutes all, or the vast majority of, the
Debtor's physical assets. SouthPoint reserves all rights to assert
that the Debtor filed this case principally to delay what is, in
fact, a two-party dispute between the Debtor and SouthPoint.
SouthPoint submits that the Debtor has failed to establish cause
for an extension of its deadline to file its schedules and
statements.
About Lifehope Equipment Leasing
Lifehope Equipment Leasing LLC is in the medical equipment rental
and leasing business.
Lifehope Equipment Leasing filed a petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ga. Case No.
23-20313) on March 14, 2023. In the petition filed by Scott Honan
as member, the Debtor reported assets and liabilities between $1
million and $10 million.
The Debtor is represented by:
Benjamin R Keck, Esq.
Keck Legal, LLC
4150 Deputy Bill Cantrell Memorial Rd.
Suite 250
Cumming, GA 30040
Tel: 678-641-1720
Email: bkeck@kecklegal.com
LOYALTY VENTURES: Unsecured Claims Under $1.5M to Recover 100%
--------------------------------------------------------------
Loyalty Ventures Inc., and its Debtor Affiliates filed with the
U.S. Bankruptcy Court for the Southern District of Texas a Combined
Disclosure Statement and Joint Chapter 11 Plan dated March 21,
2023.
On November 5, 2021, Bread, a Delaware corporation then known as
Alliance Data Systems Corporation ("ADS"), completed a corporate
spinoff (the "Spinoff Transaction") of its loyalty programs
business line, which included (i) the AIR MILES Reward Program,
Canada's most recognized coalition loyalty program, and (ii) its
Netherlands-based BrandLoyalty business ("BrandLoyalty").
As a result of the Spinoff Transaction, LVI, a newly formed
independent, publicly-traded company, became the ultimate parent of
the entities that own and operate the AIR MILES and BrandLoyalty
businesses. Pursuant to the Spinoff Transaction, 81% of the
outstanding shares of LVI were distributed pro rata to the holders
of ADS common stock based on the outstanding shares of ADS common
stock at the close of business on the record date of October 27,
2021 and ADS retained 19% of the outstanding shares of LVI.
A confluence of events and circumstances contributed to the
Debtors' need to commence the Chapter 11 Cases, as well as
LoyaltyOne's commencement of the CCAA Proceeding, beginning with
issues arising prior to the Spinoff Transaction and following on
with issues arising from the financial condition in which the
Company was left as a result of the Spinoff Transaction. Following
the Spinoff Transaction, various operational challenges accelerated
the timeline for the Debtors to exhaust their liquidity and
confront their massive debt obligations.
Despite the Company's best efforts, months of engagement with their
lenders did not lead to an out of court solution or an in court
balance sheet restructuring; instead, the Company intends to
conduct the orderly sale or wind-down, as applicable, of its assets
through the following proceedings and/or transactions: (1) the
Chapter 11 Cases in respect of the Company's corporate holding
company infrastructure; (2) the sale of the BrandLoyalty business;
and (3) the sale of the AIR MILES business either to BMO or to the
entity otherwise designated as the Successful Bidder in the
proposed SISP in connection with the CCAA Proceeding.
On March 1, 2023, Lux Financing, a private limited liability
company incorporated under the laws of Luxembourg, a wholly-owned
indirect subsidiary of LVI, entered into a Sale and Purchase
Agreement (the "BL Purchase Agreement") with Opportunity Partners
(the "Buyer"), pursuant to which the Buyer agreed to acquire from
Lux Financing 100% of all issued and outstanding shares (the
"Shares") in the capital of Apollo Holdings B.V., a private company
with limited liability incorporated under the laws of the
Netherlands ("Apollo Holdings") and the legal and beneficial owner,
directly or indirectly, of all of the shares of the subsidiaries of
Lux Financing that constitute the BrandLoyalty business. Apollo
Holdings and each of its direct and indirect subsidiaries are
collectively referred to herein as the "BL Entities."
Upon the terms and conditions set forth in the BL Purchase
Agreement, the Buyer has agreed to purchase the Shares from Lux
Financing for a fixed aggregate purchase price of $6 million to be
paid in cash at the closing of the sale transaction contemplated by
the BL Purchase Agreement (the "Closing"). Pursuant to the BL
Purchase Agreement, the Buyer also agreed to assume all liabilities
of the BL Entities as of the Closing other than those arising under
the Credit Agreement.
On March 9, 2023, LoyaltyOne and BMO entered into an asset purchase
agreement (the "Stalking Horse Transaction Agreement") pursuant to
which BMO has agreed to: (i) purchase all or substantially all of
the operating assets of LoyaltyOne, including the equity interests
in Travel Services; and (ii) assume certain liabilities associated
with the continued operation of the AIR MILES business. The sale is
conditional upon, among other things: (a) the Stalking Horse
Transaction Agreement being selected as the Successful Bid in
accordance with the proposed SISP; (b) a sale approval and vesting
order being granted by the Ontario Court, among other things,
approving the Stalking Horse Transaction Agreement and, upon
closing, vesting the purchased assets in BMO free and clear of all
encumbrances, except Permitted Encumbrances, and (c) regulatory
approvals.
Class 4 consists of General Unsecured Claims. Each Holder thereof
shall receive its share of the Liquidating Trust Interests on a Pro
Rata basis based on the aggregate amount of all Allowed Claims in
Classes 3 and 4, after application of the cash proceeds of any
collateral securing the Loan Claims to the Class 3 Claims; provided
that to the extent that any Bread Parties have any Allowed Claims
in Class 4, such Allowed Claims shall participate in the
Liquidating Trust with respect to any recoveries from assets that
were unencumbered as of the Petition Date or, to the extent
securing DIP Facility Claims or adequate protection claims under
any of the DIP Orders, not applied to satisfy such claims.
Provided further that, other than pursuant to the Bread Settlement,
in no event shall any Bread Party receive any distribution on
account of any Liquidating Trust Asset, including any proceeds
received from Preserved Estate Claims or related proceeds from any
Insurance Coverage Right on account of any recoveries obtained by
the Liquidating Trust through the prosecution and/or settlement of
Spinoff Claims and Causes of Action and all claims or Causes of
Action asserted against the Bread Parties. Class 4 is Impaired.
Class 5 consists of all Convenience Claims. A Claim in the amount
of $1,500,000.00 or less that would otherwise be a General
Unsecured Claim shall be treated as a Convenience Claim for
purposes of this Plan. Except to the extent that a Holder of an
Allowed Convenience Claim agrees to less favorable treatment, on
the Effective Date or as soon as reasonably practicable thereafter,
each Allowed Convenience Claim shall receive payment in full in
Cash from the Convenience Claim Distribution Reserve. Class 5 is
Unimpaired. The amount of claim in this Class total $5.5 million.
This Class will receive a distribution of 100% of their allowed
claims.
Class 8 consists of all Intercompany Interests. On the Effective
Date or as soon as reasonably practicable, Intercompany Interests
shall be deemed to be cancelled, settled and extinguished without
any distribution. Holders of Intercompany Interests are Impaired.
Class 9 consists of all Interests. On the Effective Date, all
Interests will be cancelled, released, and extinguished, and will
be of no further force or effect. Class 9 is Impaired and Holders
of Allowed Class 9 Interests are conclusively presumed to have
rejected the Plan.
Distributions under the Plan shall be funded, as applicable, with:
(a) Cash on hand, including cash from the proceeds of the DIP
Facility or by LoyaltyOne following the closing of the Successful
Bid and if necessary, with the approval of the Ontario Court; and
(b) the Liquidating Trust Assets.
For the avoidance of doubt, the Debtors shall transfer all cash on
hand on the Effective Date into the Liquidating Trust Reserve
pursuant to the applicable budget under the DIP Facility. Cash
payments to be made pursuant to the Plan will be made by the
Debtors, the Liquidating Trustee or the Distribution Agent, as
applicable. The Debtors or the Liquidating Trustee, as applicable,
will be entitled to transfer funds between and among the Debtors
and non-Debtor subsidiaries as the Debtors or Liquidating Trustee,
as applicable as necessary or appropriate to enable the payments
and distributions required by the Plan, provided that such
transfers do not adversely impact the Administrative Agent, or
Lenders or any tax or other treatment of the Administrative Agent
or Lenders.
A full-text copy of the Combined Disclosure Statement and Plan
dated March 21, 2023 is available at https://bit.ly/3JMwp96 from
PacerMonitor.com at no charge.
About Loyalty Ventures
Headquartered in Dallas, Texas, Loyalty Ventures Inc. is a provider
of tech-enabled, data-driven consumer loyalty solutions and reward
programs. Loyalty Ventures is the ultimate parent of 45
subsidiaries located worldwide that collectively own and operate
(i) BrandLoyalty, a European-based business that provides loyalty
campaigns to high-frequency retailers and grocers, and (ii) AIR
MILES, Canada's most recognized consumer loyalty program.
Loyalty Ventures and its affiliates sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead Case No.
23-90111) on March 10, 2023.
As of Sept. 30, 2022, the Company had $1,591,218,000 in total
assets against $1,980,850,000 in total liabilities. In the
petition signed by John J. Chesnut, chief financial officer, LVI
disclosed up to $10 million in assets and up to $1 billion in
liabilities.
Judge Christopher Lopez oversees the case.
The Debtors have hired Akin Gump Strauss Hauer & Feld LLP and
Jackson Walker LLP as U.S. co-counsel; Cassels Brock & Blackwell
LLP, as Canadian legal counsel to LoyaltyOne; PJT Partners LP as
the Debtors' investment banker; Alvarez & Marsal North America,
LLC, as the Debtors' restructuring advisor; and Alvarez & Marsal
Canada ULC, as Canadian financial and restructuring advisor to
LoyaltyOne. Kroll Restructuring Administration LLC serves as
claims, noticing and solicitation agent.
Bank of America, N.A., serves as administrative agent and
collateral agent under a 2021 Credit Agreement that consisted of a
$175 million term A loan facility; a $500 million term B loan
facility; and a $150 million revolving credit facility. Haynes and
Boone LLP serves as counsel for the Administrative Agent, and FTI
Consulting, Inc., serves as its financial advisor.
An Ad Hoc Group of Term B Loan Lenders retained Gibson Dunn &
Crutcher LLP as counsel and Piper Sandler & Co as investment
banker.
MADERA COMMUNITY: Court OKs Cash Collateral Access Thru March 31
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of California,
Fresno Division, authorized Madera Community Hospital to use cash
collateral on an interim basis in accordance with the budget,
through March 31, 2023.
A hearing on the matter is set for March 28, 2023, at 9:30 a.m.,
for uses
between April 1, 2023 and June 10, 2023, to be followed by a
continued
interim hearing on June 1, 2023, for uses after June 10, 2023.
As previously reported by the Troubled Company Reporter, Saint
Agnes Medical Center asserts an interest in the cash collateral.
As adequate protection, the Secured Creditor is granted a valid,
perfected, enforceable and nonavoidable replacement lien on its
existing collateral and the proceeds thereof, and cash flow
generated from operations, but only if and to the extent that (i)
the Secured Creditor's prepetition security interests are valid,
enforceable, properly perfected, and unavoidable, and (ii) the
Debtor's use of cash collateral results in a diminution of value of
the Secured Creditor's collateral.
A copy of the Court's order and the Debtor's budget is available at
https://bit.ly/40xvtfK from PacerMonitor.com.
The Debtor projects $5,649,863 in total income and $495,324 in
total expenses for the week ending March 24, 2023.
About Madera Community Hospital
Madera Community Hospital operates a general medical and surgical
hospital. The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Cal. Case No. 23-10457) on March 10,
2023. In the petition signed by Karen Paolinelli, chief executive
officer, the Debtor disclosed up to $100 million in assets and up
to $50 million in liabilities.
Judge Rene Lastreto II oversees the case.
Riley C. Walter, Esq., at Wanger Jones Helsley, represents the
Debtor as legal counsel.
MARINER HEALTH: Seeks to Extend Plan Exclusivity to July 16
-----------------------------------------------------------
Mariner Health Central, Inc. and its affiliates, Parkview Holding
Company GP, LLC and Parkview Operating Company, LP, asks the U.S.
Bankruptcy Court for the Northern District of California to
extend their period of exclusivity for filing a plan to July 16,
2023, and their period for obtaining acceptance of such plan to
September 14, 2023.
The Debtors seek these extensions to allow for negotiations among
key parties in interest to occur and to build as much consensus as
possible in advance of a plan rather than to further increase the
contentiousness of these cases by filing and pursuing a plan at
this time.
Unless extended, the Debtors' current periods of exclusivity to
file a plan will expire on April 17, 2023 and to solicit
acceptances will expire on June 16, 2023.
Mariner Health Central, Inc., Parkview Holding Company GP, LLC and
Parkview Operating Company, LP are represented by:
Maxim B. Litvak, Esq.
PACHULSKI STANG ZIEHL & JONES LLP
One Sansome Street, Suite 3430
San Francisco, CA 94104
Tel: (415) 263-7000
Email: mlitvak@pszjlaw.com
- and -
Hamid R. Rafatjoo, Esq.
RAINES FELDMAN LLP
1800 Avenue of the Stars, 12th Floor
Los Angeles, CA 90067
Tel: (310) 440-4100
Email: hrafatjoo@raineslaw.com
- and -
Carollynn H.G. Callari, Esq.
David S. Forsh, Esq.
RAINES FELDMAN LLP
1350 Avenue of the Americas, 22nd Floor
New York, NY 10019
Tel: (917) 790.7100
Email: ccallari@raineslaw.com
dforsh@raineslaw.com
About Mariner Health Central
Atlanta-based Mariner Health Central, Inc. provides
administrative, clinic and operational support services to skilled
nursing facilities, including the 121-bed facility operated by
Parkview Operating Company, LP.
Mariner and its affiliates, Parkview Operating Company and Parkview
Holding Company GP, LLC, sought Chapter 11 bankruptcy protection
(Bankr. D. Del. Lead Case No. 22-10877) on Sept. 19, 2022. The
cases were transferred to the U.S. Bankruptcy Court for the
Northern District of California (Bankr. D. Del. Lead Case No.
22-41079) on Oct. 25, 2022.
The Debtors estimated assets of $1 million to $10 million and
liabilities of $10 million to $50 million as of the bankruptcy
filing.
Judge William J. Lafferty oversees the cases.
The Debtors tapped Raines Feldman, LLP as general bankruptcy
counsel; Pachulski Stang Ziehl & Jones, LLP as local Delaware
counsel; and SierraConstellation Partners, LLC as restructuring
advisor. Lawrence Perkins, chief executive officer of
SierraConstellation, serves as the Debtors' chief
restructuring.officer. Kurtzman Carson Consultants, LLC is the
claims and noticing agent and administrative advisor.
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
Robinson & Cole, LLP and Sheppard, Mullin, Richter & Hampton, LLP
serve as the committee's bankruptcy counsel while Province, LLC
is the committee's financial advisor.
MARKET FORCE: Steep Discount for Main Street's $26M Loan
--------------------------------------------------------
Main Street Capital Corporation has marked its $26,079,000 loan
extended to Market Force Information LLC to market at $1,610,000 or
6% of the outstanding amount, as of December 31, 2022, according to
a disclosure contained in Main Street's Form 10-K for the fiscal
year ended December 31, 2022, filed with the Securities and
Exchange Commission on February 24, 2023.
Main Street is a participant in a Secured Debt to Market Force
Information LLC. The loan accrues interest at a rate of 12% per
annum. The loan matures on July 28, 2023.
Main Street classified the loan as a non-accrual and non-income
producing investment.
Main Street is a principal investment firm primarily focused on
providing customized debt and equity financing to lower middle
market companies and debt capital to middle market companies.
Market Force Information LLC provides marketing information
services. The Company offers strategic advisory, technology,
customer survey, employee engagement, social media reviews and
monitoring, and market research services. Market Force Information
serves retail, restaurant, hospitality, grocery, movie theaters,
studios, banking, and finance industries.
MOBITEK LLC: Ranjit Thakor Says Plan is Neither Fair Nor Equitable
------------------------------------------------------------------
Creditor Ranjit Thakor objects to Confirmation of the Amended Plan
of Reorganization filed Mobitek, LLC.
Thakor claims that the Amended Plan does not meet the fair and
equitable test as it does not propose to pay creditors all of the
disposable income the Debtor projects to receive over the 57-month
plan. The Debtor projects that it will have in excess of an
additional $50,000 of disposable income over the last 48 months of
the Amended Plan which it is not proposing to pay to its
creditors.
Thakor states that the income projections of the Amended Plan do
not seem to be reasonable. The projections contemplate that the
gross sales of the Debtor will remain the same for the next five
years. Taking into consideration the current rate of inflation, one
would think that the gross sales amount would be subject to some
increase over the next five years. One would further hope that the
Debtor intends to grow its business over the next five years and
not be satisfied that sales remain stagnant.
It appears that the Debtor is artificially keeping the gross sales
the same throughout the plan term to reduce the sums it would
otherwise be required to pay to its creditors. Notwithstanding the
Debtor's failure to recognize any increase in gross sales, the
Debtor projects that its costs of goods sold will increase at the
rate of 5% per year and that its payroll will increase by 3% in
year 2 of the plan and by 5% per year in years 3, 4 and 5 of the
plan.
Thakor asserts that the Amended Plan is not feasible in that it
fails to provide an adequate means for implementation of the
Debtor's obligations under the Amended Plan. The Debtor proposes to
pay administrative claims and Class 1 priority tax claims in full
on the Effective Date.
Thakor further asserts that the Debtor's projections provide for a
payment of $65,920.00 to Class 1 and $29,000.00 of administrative
claims on the Effective Date, meaning the Debtor must have
approximately $95,000.00 available at the time of confirmation.
Thakor contends that the mere representation that a family member
of the Debtor's principal without specifically naming such person
or identifying how such person has the means for contributing such
funds is insufficient to satisfy feasibility of the Debtor being
able to meet its plan obligations.
Further, without any explanation as to how the Debtor intends to
pay the Class 1 priority tax claim on the Effective Date places the
feasibility of the Amended Plan in question.
Feasibility of future payments under the Amended Plan are also
questionable. According to the Debtor's monthly operating reports,
the Debtor's projected plan payments are inconsistent with its
actual cash position from the time it filed this case.
A full-text copy of Rajit Thakor's objection dated March 21, 2023
is available at https://bit.ly/40vbPAM from PacerMonitor.com at no
charge.
Attorneys for Ranjit Thakor:
SCHATZMAN & SCHATZMAN, P.A.
Jeffrey N. Schatzman, Esq.
9990 S.W. 77th Avenue
Penthouse 2
Miami, Florida 33156
(305) 670-6000
Notices@Schatzmanlaw.com
About Mobitek LLC
Mobitek, LLC, is a Florida limited liability company providing
retail sales and repairs for mobile phones and related accessories.
Mobitek filed its voluntary petition for relief under Chapter 11 of
the Bankrutpcy Code (Bankr. S.D. Fla. Case No. 22-18538) on Nov. 1,
2022. In the petition signed by Fadi Jaafar as manager, the Debtor
disclosed $47,320 in assets and $1,054,423 in liabilities. Judge
Robert A. Mark presides over the case. David A. Ray, P.A., is the
Debtor's counsel.
MOLDWORKS WORLDWIDE: Unsecureds to Split $314K in 6 Years
---------------------------------------------------------
Moldworks Worldwide, LLC, filed with the U.S. Bankruptcy Court for
the District of New Jersey a Small Business Plan of Reorganization
dated March 21, 2023.
Moldworks is a New Jersey based intimate apparel manufacturer and
distributor. Moldworks began in 1992 as Moldworks Inc., as a
brassiere part maker. The Debtor was formed on or about June 6,
2005 as a New Jersey limited liability company.
The Debtor is in the business of specialty intimate apparel,
particularly with a niche in ladies brassieres and a patented
radiotherapy FDA approved brassieres designed to treat survivors of
breast cancer. Terry Hyams owns 51% of the membership interests in
the Debtor. The remaining 49% of the membership interests are owned
by Howard Hyams.
The Debtor filed this Subchapter V case to resolve its financial
situation created as a result of a slowdown of orders from one of
its most significant clients.
The Debtor has 3 secured creditors which will be paid over a period
of years. The third (claim 12-1) secured creditor proof of claim
("WBL") is disputed as in violation of the laws of Usuary as well
as several additional legally unenforceable provisions within the
purported contract signed between the debtor and creditor. An
objection to the proof of claim of WBL at 12-1 or an Adversarial
Complaint or a Motion to Expunge and Modify the claim will be filed
shortly.
Class 3 consists of General Unsecured Creditors. This Class shall
receive $314,170.76 paid through equal quarterly installments.
Payments begin 6 months after the Effective Date. Payments end 6
years following commencement of payments.
Mr. Terry R. Hyams owns 51% of the membership interests in the
Debtor and Howard M. Hyams owns the other 49% of the membership
interests. Section 2.5 of the Plan provides for all the Debtor's
assets to revest in the Debtor.
The Plan will be funded by this oversecured Debtor's future sales
which will increase during the 4th quarter of 2023. On Confirmation
of the Plan, all property of the Debtor, tangible and intangible,
including, without limitation, licenses, furniture, fixtures and
equipment, will revert, free and clear of all Claims and Equitable
Interests except as provided in the Plan, to the Debtor.
A full-text copy of the Plan of Reorganization dated March 21, 2023
is available at https://bit.ly/3z7e2Ha from PacerMonitor.com at no
charge.
Debtor's Counsel:
Edward Vaisman, Esq.
VAISMAN LAW OFFICES
33 Wood Ave S Ste 600
Iselin, NJ 08830-2717
Email: vaismanlaw@gmail.com
About Moldworks Worldwide
Moldworks Worldwide, LLC, specializes in manufacturing intimate
apparel, activewear, loungewear and lingerie type products.
Moldworks Worldwide filed a Chapter 11 bankruptcy petition (Bankr.
D.N.J. Case No. 22-19640) on Dec. 6, 2022.
In the petition signed by Terry R. Hyams, chairman, the Debtor
disclosed $1,037,191 in assets and $801,461 in liabilities.
Edward Vaisman, Esq., of VAISMAN LAW OFFICES, is the Debtor's
counsel.
MONROE GARDENS: Unsecureds Will Get 100% of Claims in 60 Months
---------------------------------------------------------------
Monroe Gardens, LLC, filed with the U.S. Bankruptcy Court for the
Southern District of West Virginia a Small Business Plan of
Reorganization dated March 20, 2023.
Monroe Gardens, L.L.C. was established on or about 1997 as a land
holding company for the Greenbrier Nursey Retail Entities in the
production farm. Monroe Gardens L.L.C. was formed by James Monroe
and Jennifer Monroe, then husband and wife.
James Monroe arranged for the purchase of the Greenbrier Nursey
properties in Summers County, West Virginia from his father James
E. Monroe, Sr. and the future interest value from his sisters. With
the intent to expand the business and expand the retail portion of
the business, the Debtor looked in the Roanoke, Virginia area and
purchased a piece of property in 1998 through Monroe Gardens,
L.L.C. to establish anther retail garden center which opened in
1999.
In 2018, the principals of the Debtor became involved in their
divorce litigation and in January 2019 the Judge of the Family
Court Raleigh County issued a bifurcated divorce order which
reserved the settlement of all the property owned for later
adjudication. Mr. Monroe still was a 50/50 owner in Monroe Gardens
and all the other entities, was removed by the family court from
any judiciary responsibilities and handling any money because the
businesses were in just a catastrophic downward spiral.
This Plan provides for three classes of secured claims, one class
of priority unsecured claims and one class of general unsecured
claims. Unsecured creditors holding allowed claims will receive
distributions, which the proponent of this Plan has valued 100% on
the dollar.
This Plan also provides for the payment of administrative and
priority claims to the extent permitted by the Code in
installments.
Class 2 consists of the Secured Claim of Peoples Bank. Peoples Bank
shall retain its liens on its collateral. Debtor will pay Peoples
Bank $450,000.00 amortized over Twenty years at 8.5% interest.
Payments to be $3,903.88 a month for 240 months beginning the 15th
of the month following the entry of a confirmation order.
Class 3 consists of the Secured Claim of Pioneer Community Bank.
Will amortize Pioneer Community Bank's obligation over twenty years
at 8.5% interest, and will pay the $120,000.00 debts over 240
months at $1,041.04 a month beginning the 1st of the next month
immediately after the entry of a confirmation order.
Class 4 consists of the Secured Claim of Beckley Sanitary Board.
The Debtor will pay the Sanitary Board $12,500.00 at confirmation
as full and final payment on their lien.
Class 5 Unsecured Creditors. Allowed unsecured general claims under
§ 502 of the Code will be paid a total of their claim over 60
months without interest payable in equal quarterly payments.
Debtor will commence making its payments under the plan on the
fifteenth day of the calendar month that follows the effective date
of the plan. It will fund the plan payments from its income made in
the ordinary course of its business.
The Debtor contemplates the secured creditors will accept this plan
and that the unsecured creditors will receive fair and equitable
treatment. The Debtor will continue to rent real property for a
nursey to a related entity and will its Summers County, West
Virginia real property.
A full-text copy of the Plan of Reorganization dated March 20, 2023
is available at https://bit.ly/3LKsAnH from PacerMonitor.com at no
charge.
Counsel for Debtor:
Pepper & Nason
Andrew S. Nason, Esq.
Emmett Pepper, Esq.
8 Hale Street
Charleston, WV 25301
About Monroe Gardens
Monroe Gardens, LLC owns three properties in Talcott, W.Va;
Roanoke, Va.; and Beckley, W.Va., having a total aggregate value of
$2.29 million.
Monroe Gardens filed a petition for relief under Subchapter V of
Chapter 11 of the Bankruptcy Code (Bankr. S.D. W.Va. Case No.
22-50094) on Dec. 23, 2022, with up to $500,000 in assets and up to
$10 million in liabilities. Joe Mark Supple has been appointed as
Subchapter V trustee.
Judge B. Mckay Mignault oversees the case.
Andrew S. Nason, Esq., at Pepper & Nason and Foti Flynn Lowen &
Co., P.C. serve as the Debtor's legal counsel and accountant,
respectively.
MORGAN TURF: Seeks to Extend Plan Exclusivity to March 29
---------------------------------------------------------
Morgan Turf, LLC asks the U.S. Bankruptcy Court for the Middle
District of Florida to extend its exclusivity period within which
to file a disclosure statement and plan of reorganization to at
least March 29, 2023.
The Debtor's current deadline for filing a plan of reorganization
and disclosure statement is March 15, 2023.
The Debtor explained that it has been unable to comply due to
unforeseen complications regarding obtaining certain financial
records necessary to prepare the plan of reorganization and
disclosure statement.
Morgan Turf, LLC is represented by:
Pierce J. Guard, Jr., Esq.
THE GUARD LAW GROUP, PLLC
2511 Orleans Avenue
Lakeland, FL 33803
Tel: (863) 619-7331
Email: jguardjr@aol.com
About Morgan Turf LLC
Morgan Turf LLC filed a Chapter 11 bankruptcy petition (Bankr. M.D.
Fla. Case No. 8:22-bk-04620-CPM) on November 18, 2022.
Judge Catherine Peek McEwen is assigned the case.
The Debtor is represented by Pierce J Guard, Jr, Esq. at The Guard
Law Group, PLLC.
The U.S. Trustee is represented by Nathan A Wheatley, Esq. at the
Office of the U.S. Trustee.
MOUNTAIN PROVINCE: To Voluntarily Terminate SEC Reporting
---------------------------------------------------------
Mountain Province Diamonds Inc. announced it will voluntarily file
a Form 15F with the United States Securities and Exchange
Commission to terminate the registration of its common shares under
Section 12(g) of the Securities Exchange Act of 1934, as amended,
and its reporting obligations under Section 13(a) and Section 15(d)
of the Exchange Act.
Management of the Company is of the view that the costs associated
with continuing the registration and reporting under the Exchange
Act outweigh the benefits received by the Company from maintaining
its registration.
The termination will become effective 90 days after the date of
filing of the Form 15F with the SEC, or within such shorter period
as the SEC may determine. Upon filling of the Form 15F, the
Company's reporting obligations under the Exchange Act will be
immediately suspended.
The Company's shares will continue to trade on the TSX under ticker
symbol "MPVD", and the Company will continue to meet its Canadian
continuous disclosure obligations through filings with the
applicable Canadian securities regulators. All of the Company's
filings can be found at the SEDAR website at www.sedar.com.
About Mountain Province
Mountain Province Diamonds Inc. is a Canadian-based resource
company listed on the Toronto Stock Exchange under the symbol
'MPVD'. The Company's registered office and its principal place of
business is 161 Bay Street, Suite 1410, P.O. Box 216, Toronto, ON,
Canada, M5J 2S1. The Company, through its wholly owned
subsidiaries 2435572 Ontario Inc. and 2435386 Ontario Inc., holds
a
49% interest in the Gahcho Kue diamond mine, located in the
Northwest Territories of Canada. De Beers Canada Inc. holds the
remaining 51% interest. The Joint Arrangement between the Company
and De Beers is governed by the 2009 amended and restated Joint
Venture Agreement.
As of Sept. 30, 2022, the Company had C$966.17 million in total
assets, C$435.42 million in current liabilities, C$27.75 million in
Dunebridge junior credit facility, C$223,000 in lease obligations,
C$74.44 million in decommissioning and restoration liability,
C$36.40 million in deferred income tax liabilities, and C$391.93
million in total shareholders' equity.
Toronto, Canada-based KPMG LLP, the Company's auditor since 1999,
issued a "going concern" qualification in its report dated March
28, 2022, citing that the Company faces liquidity challenges as a
result of liabilities with maturity dates through December 2022 and
short-term financial liquidity needs that raises substantial doubt
about its ability to continue as a going concern.
NABIEKIM ENTERPRISES: Case Summary & 12 Unsecured Creditors
-----------------------------------------------------------
Debtor: NabieKim Enterprises
3039 E Campus Pointe Dr
Fresno, CA 93710-7525
Chapter 11 Petition Date: March 24, 2023
Court: United States Bankruptcy Court
Eastern District of California
Case No.: 23-10571
Judge: Hon. Jennifer E. Niemann
Debtor's Counsel: Peter Fear, Esq.
FEAR WADDELL, P.C.
7650 N. Palm Avenue Suite 101
Fresno, CA 93711
Tel: (559) 436-6575
Email: pfear@fearlaw.com
Estimated Assets: $50,000 to $100,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Kaye Kim as CEO/president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 12 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/VMCSQNQ/NabieKim_Enterprises__caebke-23-10571__0001.0.pdf?mcid=tGE4TAMA
NATIONAL CINEMEDIA: Unpaid Debt Payment Grace Period Extended
-------------------------------------------------------------
Erin Hudson of Bloomberg Law reports that National CineMedia
extended the grace period to pay interest due to its senior
unsecured bondholders as negotiations with lenders continue, the
company said in a March 16, 2023 filing.
The movie theater advertiser extended it from 30 days to 47 days on
Wednesday, March 15, 2023, with the agreement of at least a
majority of bondholders, per the disclosure.
Last February 2023, the company skipped an interest payment of
about $6.6 million due to its unsecured bondholders, kicking off a
30-day grace period.
The firm said it has the liquidity to make the payment but
extending the grace period allows it to continue negotiating with
lenders.
About National Cinemedia
National CineMedia Inc. (NCM) is a cinema advertising network in
the U.S. NCM's Noovie pre-show is presented exclusively in 47
leading national and regional theater circuits including AMC
Entertainment Inc. (NYSE:AMC), Cinemark Holdings, Inc. (NYSE:CNK)
and Regal Entertainment Group (a subsidiary of Cineworld Group PLC,
LON: CINE). NCM's cinema advertising network offers broad reach and
audience engagement with over 20,100 screens in over 1,600 theaters
in 195 Designated Market Areas (all of the top 50). NCM Digital and
Digital-Out-Of-Home (DOOH) go beyond the big screen, extending
in-theater campaigns into online, mobile, and place-based marketing
programs to reach entertainment audiences. National CineMedia, Inc.
(NASDAQ:NCMI) owns a 48.3% interest in, and is the managing member
of, National CineMedia, LLC. On the Web: HTTP://www.ncm.com/ and
HTTP://www.noovie.com/
As of Sept. 29, 2022, the Company had $775.4 million in total
assets, $1.23 billion in total liabilities, and a total deficit of
$453.8 million.
* * *
As reported by the TCR on Oct. 5, 2022, S&P Global Ratings lowered
its issuer credit rating to 'CCC' from 'B-' on National Cinemedia
Inc. to reflect the increased risk of a default event due to
upcoming debt maturities and expected covenant breaches over the
next 12 months.
NATIONAL RIFLE: Says Court Ignored NYAG's Animus
------------------------------------------------
Rachel Scharf of Law360 reports that the National Rifle Association
says the New York court ignored attorney-general's 'open boasting'
of animus.
The National Rifle Association has asked a New York appellate court
to bring back its retaliation counterclaims in state Attorney
General Letitia James' financial fraud suit, saying a dismissal
order "ignores James's open boasting" that she was motivated by her
alleged dislike of gun rights advocacy.
About National Rifle Association
Founded in 1871 in New York, the National Rifle Association of
America is a gun rights advocacy group. The NRA claims to be the
longest-standing civil rights organization and has more than five
million members.
Seeking to move its domicile and principal place of business to
Texas amid lawsuits in New York, the National Rifle Association of
America sought Chapter 11 protection (Bankr. N.D. Tex. Case No.
21-30085) on Jan. 15, 2021. Affiliate Sea Girt LLC simultaneously
sought Chapter 11 protection (Case No. 21-30080).
The NRA was estimated to have assets and liabilities of $100
million to $500 million as of the bankruptcy filing.
Judge Harlin Dewayne Hale oversees the cases.
The Debtors tapped Neligan LLP and Garman Turner Gordon LLP as
their bankruptcy counsel, and Brewer, Attorneys & Counselors as
their special counsel.
The U.S. Trustee for Region 6 appointed an official committee of
unsecured creditors on Feb. 4, 2021. Norton Rose Fulbright US, LLP
and AlixPartners, LLP serve as the committee's legal counsel and
financial advisor, respectively.
* * *
Following a 12-day trial, U.S. Bankruptcy Judge Harlin D. Hale
dismissed the National Rifle Association's Chapter 11 case Tuesday,
May 11, 2021, after finding the group filed its petition in bad
faith in order to gain advantage in litigation brought by New
York's attorney general. New York Attorney General Letitia James
sought the dismissal of the case. The judge condemned the NRA's
attempts to avoid accountability, making clear that the
organization's actions were "not an appropriate use of bankruptcy."
NEUROEM THERAPEUTICS: Taps Ideasphere Partners as Consultant
------------------------------------------------------------
NeuroEM Therapeutics, Inc. seeks approval from the U.S. Bankruptcy
Court for the Middle District of Florida to employ Ideasphere
Partners, LLC as its consultant and designate Chuck Papageorgiou as
chief restructuring officer and interim chief executive officer.
The firm will assist the Debtor with the reorganization process,
and assist in bringing the MemorEM Device to market and launching
and concluding a Series A Capital Round of funding.
The firm will be paid as follows:
a. Mr. Papageorgiou will receive the equivalent of equity in
the reorganized Debtor equal to 1 percent of the fully diluted
equity at the time of the approval of the plan of reorganization
for every three months of service, up to a total of 3 percent;
b. Ideasphere will received $10,000 per month from the Debtor
for services rendered;
c. Upon the completion of a Series A Capital Raise or
equivalent, Papageorguou will receive an additional 6 percent of
the total fully diluted equity in the reorganized Debtor
available;
d. The Ideasphere Parties will be reimbursed for expenses
incurred on behalf of the Debtor.
Chuck Papageorgiou, an executive at Ideasphere Partners, assured
the court that the firm does not hold nor represent any interest
adverse to the Debtor or its estate.
The firm can be reached through:
Chuck Papageorgiou
Ideasphere Partners LLC
17203 Brown Road
Odessa, FL 33556
Mobile No. 727-252-6120
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.
NEWCO LLC: Files for Chapter 11 to Stop Foreclosure
---------------------------------------------------
NewCo LLC filed for chapter 11 protection in the District of New
Hampshire.
According to court filings, NewCo LLC has total liabilities of
$3,448,000 to 1 to 49 creditors. The petition states that funds
will be available to unsecured creditors.
A telephonic meeting of creditors under 11 U.S.C. Section 341(a) is
slated for March 18, 2023 at 1:00 p.m.
Yager Family Management, LLC, which claims to be the only secured
creditor and one of the two non-insider creditors of NewCo, LLC,
immediately filed a motion to dismiss the Chapter 11 case.
According to YFM, the Chapter 11 case was filed to delay YFM's
foreclosure on the Debtor's only significant asset -- a condominium
development project in Lincoln, New Hampshire -- and transfer to
this Court the pending state court matter between the Debtor and
YFM under the guise of a Chapter 11 reorganization. Because of the
Debtor's gross mismanagement and repeated project failures,
including continuing defaults under its loans from YFM, YFM sought
to enforce its rights as a secured lender under New Hampshire law
through a foreclosure and secured party sale. That foreclosure sale
was scheduled for March 21, 2023.
As a result, of the Debtor's filing, the state court matter has
been stayed and the foreclosure postponed. However, this tactic
only imposes further delay and does not warrant bankruptcy
protection, YFM tells the Court.
YFM asserts that the case should be dismissed because it has all
the factors of a bad-faith filing:
* the Debtor has only one asset;
* the Debtor has few unsecured creditors whose claims are small
in relation to YFM's secured claim of for more than $5,000,000;
* the Debtor's one asset is the subject of a foreclosure action
as a result of arrearages or default on the debt;
* the Debtor's financial condition is, in essence, a two-party
dispute between the Debtor and YFM which can be resolved in the
pending state foreclosure action;
* the timing of the Debtor's filing evidences an intent to delay
or frustrate the legitimate efforts of YFM to enforce their
rights;
* the Debtor has little or no cash flow;
* the Debtor cannot meet current expenses, including the payment
of personal property and real estate taxes; and
* the Debtor has no employees.
About NewCo LLC
NewCo LLC owns property in Lincoln, New Hampshire. It owns duplex
units 41, 53 and 54 in the Forest Woods Development and an
undeveloped property in the Forest Gardens development for building
three additional 12-unit buildings. The Properties have an
aggregate appraised value of $8.5 million.
NewCo LLC filed a petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. D.N.H. Case No. 23-10123) on March 14,
2023. In the petition filed by Jared R. Elliott, manager, sole
member, the Debtor reported total assets of $8,504,673 and total
liabilities of $3,448,000.
The case is overseen by Honorable Bankruptcy Judge Bruce A.
Harwood.
The Debtor is represented by:
Jesse I. Redlener, Esq.
Ascendant Law Group
3 Amalia Drive
Nashua, NH 03063
NIGHTMARE GRAPHICS: Files Emergency Bid to Use Cash Collateral
--------------------------------------------------------------
Nightmare Graphics, Inc. asks the U.S. Bankruptcy Court for the
District of Maryland for authority to use cash collateral generated
from the collection of accounts receivables to avoid immediate and
irreparable harm to the Debtor's Estate and cause the Debtor to
cease operations.
On July 8, 2015, the Debtor obtained a loan from Sandy Spring Bank
in the amount of $346,800.
The indebtedness and obligations owed by the Debtor to Sandy Spring
Bank under the Note and the Loan Agreement are secured by first
priority duly perfected liens and security interests in, to and
against, among other things, the Debtor's cash as well as accounts
receivables.
The current balance of the Sandy Spring Loan is approximately
$140,000.
Subsequent to the Sandy Spring Loan, the Debtor obtained a series
of loans, which were secured by UCC-1s, and which assert that the
lien is secured by, among other things, the cash of the company as
well as accounts receivables.
In addition to Sandy Spring, there are four UCC-1s for lenders with
outstanding amounts owed -- the Small Business Administration,
PayPal Financing, ML Factor, and Fox Business Funding Since the
filing of the case, the Debtor's business has improved.
The SBA lien relates to an Economic Injury Disaster Loan, and the
payments are not yet due and owing. The UCC-1 for the SBA also does
not cover future cash and receivables.
The PayPal, ML Factor, and Fox Business Funding Loans are all
merchant loans, and all of the UCC-1s assert a lien on future cash
and receivables, among other assets of the Debtor.
Finally, there are six UCC-1s on file with the State for loans that
the Debtor believes were paid in full.
Notably, because of the timing of their filing and the current
balance of the Sandy Spring Loan, none of the other creditors have
any equity in the Debtor's cash collateral to attach to.
The Debtor expects to generate sufficient cash flow to pay its
monthly bills and confirm a Chapter 11 Plan if it can successfully
restructure the secured debt.
In addition, the Debtor had significant pre-petition arrears that
it must address in order to continue as a going concern:
$30,0000 in wages owed to essential employees,
$30,000 owed for payroll taxes, and
~ $145,000 in monies owed to critical vendors.
With regard to Sandy Spring, the Debtor proposes making adequate
protection payments of $2,000 per month beginning April 1 through
September 1, 2023, or until Plan confirmation, whichever is
earliest, and provided the Plan is not yet confirmed, beginning
September 1 and until Plan confirmation, will make adequate
protection payments of $4,473.92, which represents the full monthly
payment under the Sandy Spring Loan.
With regard to the Non Bank UCCs, (i.e. PayPal, ML Factor, and Fox
Business Funding), the Debtor proposes making adequate protection
payments of $300 per month to each beginning April 1 until Plan
confirmation or such time as the debt is determined by court order
or agreement to be unsecured or undersecured.
About Nightmare Graphics, Inc.
Nightmare Graphics, Inc. sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Md. Case No. 23-11647) on March 12,
2023. In the petition signed by Robert Andelman, owner, the Debtor
disclosed up to $500,000 in assets and up to $10 million in
liabilities.
Michael Coyle, Esq., at Coyle Law Group LLC, represents the Debtor
as legal counsel.
NORTH SHORE MANOR: Files for Chapter 11 Bankruptcy
--------------------------------------------------
North Shore Manor Inc. filed for chapter 11 protection in the
District of Colorado.
The Debtor is a skilled nursing facility located in Loveland,
Colorado. The Debtor's bankruptcy filing was prompted by a number
of financial and managerial issues. The Debtor guaranteed a
promissory note with BOKF, NA d/b/a Bank of Oklahoma, and in
conjunction therewith granted a security interest in substantially
all of its assets. The BOKF loan comes due on March 7, 2023. The
Debtor also entered into a secured loan with First National Bank
n/k/a First National Bank of Omaha which comes due in the third
quarter of 2023.
The bankruptcy case was also prompted by host of issues left by the
Debtor's current manager, Columbine Management Services Inc. Among
other issues, there have been a large number of financial
transactions between CMS and insider and related entities. As a
result the Debtor has been left with strained cash position.
The facility is located on land owned by North Shore Associates
("NSA"), an entity affiliated with the Debtor.
As of the Petition Date, the amount owing to BOKF is estimated to
be $1,800,000 under the March 7, 2016 loan, and it is uncertain
whether the August 9, 2022 loan from BOKF has been paid in full.
The amount owing to FNB is estimated to be approximately $406,643.
The petition states that funds will be available to unsecured
creditors.
A telephonic meeting of creditors under 11 U.S.C. Section 341(a) is
slated for April 10, 2023 at 9:00 a.m.
About North Shore Manor
North Shore Manor Inc. operates a skilled nursing facility located
in Loveland, Colorado.
North Shore Manor Inc. filed a petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. D. Col. Case No. 23-10809) on March
6, 2023. In the petition filed by Robert D. Church, Jr. as interim
chief executive officer, the Debtor reported assets and liabilities
between $1 million and $10 million.
The case is overseen by Honorable Bankruptcy Judge Joseph G Rosania
Jr.
The Debtor is represented by:
Aaron A Garber, Esq.
201 Columbine St., STE 15
P.O. Box 6362
Denver, CO 80206
Tel: 303-296-1999
Email: agarber@wgwc-law.com
NOSRAT LLC: Files for Chapter 11 Amid $8-Mil. Judgment
------------------------------------------------------
Nosrat LLC filed for chapter 11 protection in the Eastern District
of New York.
The Debtor owns the real property at 343-349 Nostrand Avenue and
415-419 Gates Avenue, Brooklyn, New York. The Property was
appraised at $22,740,000 in September 2017. The Property is
encumbered by a mortgage in the amount of about $11,767,545 in
favor of First National Bank of Long Island. The mortgage
obligation is current.
On Feb. 16, 2022, following a Kings County jury verdict, an
$8,000,000 judgment was entered against the Debtor arising from a
wintertime slip and fall case on the sidewalk outside a dance
studio that rents space from the Debtor. Plaintiff Nataki Caver
sprained her ankle. She alleged ligament damage and severe pain
that will last for the rest of her life and cause her to walk with
a cane. The Debtor's liability insurance covers only $1,000,000 of
the claim.
The Debtor has been advised that grounds exist to appeal including
(a) the trial court allowing irrelevant evidence regarding the
defendants' principal's personal wealth; (b) the trial court
refusing to allow employer records showing that the Debtor is able
to go to work every day, (c) the trial court refusing to let the
defendants call plaintiff Nataki Caver on defendants' case after
ruling that would be allowed instead of extended cross examination
during plaintiff's direct case; (d) the trial court refusing to
charge the jury that defendants were not under a duty to clear the
entire sidewalk of snow and ice; (e) the trial court ruling that
the dance studio's lease was
unambiguous as to the tenant's duty to clear the sidewalk, and that
the parol evidence rule applied, but then allowing evidence as to
course of conduct; (f) the trial court dismissing defendants claims
against co-defendant tenants but thereafter letting those
defendants remain in the case for summations; and (g) the trial
court's refusal to set aside jury’s finding that the plaintiff
slipped on ice that remained for three days, as against the weight
of the evidence.
The Debtor thus filed an appeal but could not bond the appeal since
bonding companies require a cash security equal to 115% of the
judgment amount. A sheriff's sale was scheduled for March 8, 2023.
The Debtor filed this Chapter 11 petition to preserve and protect
the Debtor's interest in the Property during the appellate
process.
Aside from the Mortgagee's claim and the personal injury judgment,
both of which are protected by liens, creditors included a $100,000
disputed water bill, a $130,000 SBA Covid disaster loan and about
$900,000 of general unsecured vendor and loan claims.
The Debtor intends to file a plan that pays the judgment amount due
upon final determination from the proceeds of the sale or refinance
of the Debtor's Property, an equity contribution, or some
combination thereof. The Debtor will continue to pay debt service,
resolve the water bill issue with the City of New York and settle
general unsecured claims on terms agreeable to the parties.
According to court filings, Nosrat LLC has $20,923,965 in debt to 1
to 49 creditors. The petition states that funds will be available
to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
April 5, 2023 at 2:00 p.m. at Room 562, 560 Federal Plaza, CI, NY.
About Nosrat LLC
Nosrat LLC is a Single Asset Real Estate as defined in 11 U.S.C.
Section 101(51B). The Debtor owns the real property at 343-349
Nostrand Avenue and 415-419 Gates Avenue, Brooklyn, New York. The
Property is a mixed-use eight-building apartment complex with five
stores and 54 apartments on the northeast corner of Nostrand Avenue
and Gates Avenue in Bedford Stuyvesant.
Nosrat LLC filed a petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 23-70776) on March 7,
2023. In the petition filed by Enrique Ventura, as controller, the
Debtor reported total assets of $25,002,000 total liabilities of
$20,923,965.
The case is overseen by Honorable Bankruptcy Judge John S. Trust.
The Debtor is Represented by:
Mark A. Frankel, Esq.
Backenroth Frankel & Krinsky LLP
45 North Station Plaza, Suite 315
Great Neck, NY 11021
Tel: (212) 593-1100
Fax: (212) 644-0544
E-mail: mfrankel@bfklaw.com
O'CONNOR CONSTRUCTION: Seeks Cash Collateral Access Thru July 31
----------------------------------------------------------------
O'Connor Construction Group, LLC asks the U.S. Bankruptcy Court for
the Northern District of Texas, Fort Worth Division, for authority
to continue using cash collateral and provide adequate protection.
O'Connor Construction says a need exists for the Debtor to obtain
funds to continue the operation of its business.
The Debtor seeks, on a continuing basis, authorization to use cash
collateral to satisfy the actual, ordinary and necessary operating
expenses set forth on the budget through July 31, 2023. The Budget
does not include extraordinary expenses which may be required from
the Debtor and to the extent that the expenses are not a part of
the Budget the Debtor may seek consent from the secured creditors
for the payment of same or further authorization from the Court.
As of the Petition Date, liens or other interests are asserted
against the cash collateral of the Debtor by the United States
Small Business Administration, Breakout Capital, LLC, CIT Bank,
N.A., Union Funding Source, Inc. and Green Capital Funding, LLC.
While Union Funding Source and Green Capital Funding assert
security interests in the property they claim they purchased from
the Debtor pre-petition, they take issue with their designation as
creditors due to the nature of their prepetition transactions with
the Debtor.
The Debtor agrees to segregate and account to the Secured Creditors
for all cash collateral: (i) that it now possesses, (ii) it has
permitted to be transferred into the possession of others since the
Petition Date, if any, (iii) is being held by any party in privity
with or on behalf of the Debtor, and (iv) is existing on or is
received after the Petition Date.
As adequate protection, the Secured Creditors will receive, as
adequate protection to the extent of the diminution in value of
each of their perfected interests in the cash collateral, a
replacement lien in post-petition assets of the same character as
their respective prepetition collateral and proceeds of
post-petition assets of the same character as their respective
prepetition collateral.
The Adequate Protection Liens will (i) be supplemental to and in
addition to the prepetition liens or interests of each respective
Secured Creditor, (ii) be accorded the same validity and priority
as enjoyed by the prepetition liens or interests immediately prior
to the Petition Date, (iii) be deemed to have been perfected
automatically effective as of the entry of the Order without the
necessity of filing of any UCC-1 financing statement, state or
federal notice, mortgage or other similar instrument or document in
any state or public record or office and without the necessity of
taking possession or control of any collateral.
As additional adequate protection for the interests of Breakout
Capital LLC in the cash collateral, the Debtor will continue making
adequate protection payments to Breakout Capital LLC on or before
the first day of each month, until otherwise directed by the Court
or by operation of law, in the amount of $10,000.
A copy of the motion and the Debtor's budget is available at
https://bit.ly/40B1vr3 from PacerMonitor.com.
The Debtor projects total expenses, on a monthly basis, as
follows:
$93,751 for April 2023;
$92,251 for May 2023;
$111,751 for June 2023; and
$92,251 for July 2023.
About O'Connor Construction Group, LLC
Based in Poolville, Texas, O'Connor Construction Group, LLC has
over 30 years of experience as a commercial/industrial contractor
specializing in food storage/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. Tex. Case No. 22-40187-11) on January 28, 2022.
In the petition signed by Paul O'Connor, member/manager, the Debtor
disclosed up to $10 million in assets and up to $50 million in
liabilities.
The Debtor is represented by:
Joseph F. Postnikoff, Esq.
Zachary G. Levick, Esq.
ROCHELLE MCCULLOUGH, LLP
300 Throckmorton Street, Suite 520
Fort Worth, TX 76102
Telephone: (817) 347-5260
Email: jpostnikoff@romclaw.com
zlevick@romclaw.com
Union Funding Source, Inc., as secured creditor, is represented by
Shanna M. Kaminski, Esq., at Kaminski Law, PLLC.
OWENS & MINOR: Moody's Affirms Ba3 CFR, Alters Outlook to Negative
------------------------------------------------------------------
Moody's Investors Service revised the outlook of Owens & Minor,
Inc.'s, to negative from stable. Concurrently, Moody's affirmed
Owens & Minor's existing ratings, including its Ba3 Corporate
Family Rating and its Ba3-PD Probability of Default Rating. Moody's
also affirmed Owens & Minor's instrument ratings, including its Ba3
senior secured rating and its B2 senior unsecured rating. Moody's
downgraded the Speculative Grade Liquidity Rating to SGL-2 from
SGL-1.
The revision of the outlook to negative reflects Moody's
expectation that Owens & Minor will not be able to reduce its
leverage as quickly as previously anticipated at the time of the
acquisition of Apria in March 2022. The company had a weak
operating performance as the pandemic tailwinds subsided amid an
intense competitive environment. Financial leverage for the FY 2022
was 4.7x which Moody's expects will remain elevated before
declining towards 3.5x by 2024.
The affirmation of the ratings reflects Moody's view that Owens &
Minor's margin profile will benefit from the full year contribution
of Apria in 2023, which has higher margins than Owens & Minor's
distribution business. Earnings growth will also be supported by
management's initiatives to reduce its cost base and improve
productivity. As a result, Moody's expects leverage will improve
towards 3.5x, further supported by debt repayment, and that Owens &
Minor will maintain good liquidity.
The downgrade of the SGL rating reflects Moody's expectation of
lower cash generation in 2023 due to weaker operating performance
and related reduction in covenant headroom. Furthermore, Moody's
expects that Owens & Minor might have to draw on its revolver (or
use its A/R securitization facility) to repay the 2024 maturity
($245 million).
Affirmations:
Issuer: Owens & Minor, Inc.
Corporate Family Rating, Affirmed Ba3
Probability of Default Rating, Affirmed Ba3-PD
Senior Secured Bank Credit Facility, Affirmed Ba3 (LGD4)
Senior Secured Regular Bond/Debenture, Affirmed Ba3 (LGD4)
Senior Unsecured Regular Bond/Debenture, Affirmed B2 (LGD5)
Downgrades:
Issuer: Owens & Minor, Inc.
Speculative Grade Liquidity Rating, Downgraded to SGL-2 from
SGL-1
Outlook Actions:
Issuer: Owens & Minor, Inc.
Outlook, Changed To Negative From Stable
RATINGS RATIONALE
The Ba3 CFR is supported by Owens & Minor's leading position in the
medical and surgical supply distribution business supplemented by a
manufacturing business. Owens & Minor focuses on single-use
consumable products which have low levels of technological
obsolescence risk but are essential to the provision of healthcare
in a wide range of settings. The company's expansion into home
health has broadened its product range and supports profitability.
The rating also reflects Moody's expectation that financial
leverage, which remains high following the Apria acquisition, will
improve towards 3.5x in the next 12-18 months through earnings
growth and debt repayment.
The rating is constrained by Owen's & Minor's modest scale, and low
distribution margins reflecting a highly competitive industry.
Further, Owens & Minor's manufacturing business faces a challenging
outlook due to the high fixed cost nature of the business and weak
outlook for demand for PPE post pandemic. Finding alternatives to
revive grow manufacturing volumes will be challenging.
The Speculative Grade Liquidity Rating of SGL-2 reflects the
company's good liquidity. Liquidity is supported by positive free
cash flow after required debt amortization and access to external
credit facilities. At December 31, 2022, Owens & Minor had
unrestricted cash of $69 million. The company has no maturity until
December 2024. Liquidity is also supported by a $450 million
revolving credit facility (undrawn as of December 31, 2022) that
expires in March 2027 and a $450 million asset receivable
securitization facility that expires in March 2025. This facility
had utilization of $96 million as of December 31, 2022. Moody's
expects Owens & Minor to maintain adequate headroom on its
covenants.
ESG factors are material to Owens & Minor's rating. Owens & Minor's
ESG credit impact score is moderately negative (CIS-3), reflecting
the weight placed on its exposure to environmental risks. These are
reflected in the E-4, highly negative. As a distributor utilizing a
fossil fuel dependent truck fleet, Owens & Minor has highly
negative exposure to carbon transition risk related to the carbon
footprint of its truck fleet. The company also has moderately
negative exposure to risks associated with waste and pollution
arising from fleet emissions. Social considerations are moderately
negative, reflected in the S-3 score, due to the company's exposure
to acute care hospitals, which face significant budgetary pressure.
This risk consideration is however tempered by positive demographic
trends that support long-term demand for Owens & Minor products.
Governance considerations are also moderately negative, reflected
in the G-3 issuer profile score, due to Owens & Minor's willingness
to increase leverage to pursue external growth, tempered by a
public leverage target between 2.0x and 3.0x.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
A rating upgrade is currently unlikely but will require a material
increase in scale, further improvement in diversification while
maintaining balanced financial policies. Specifically, Moody's
could upgrade the ratings if adjusted debt/EBITDA is expected to be
sustained below 2.0x.
The ratings could be downgraded if the company's operating
performance deteriorates, in particular as demand for its product
further softens, and if the company fails to reduce leverage
through a combination of earnings growth and debt repayment, or if
liquidity deteriorates. Specifically, if adjusted debt/EBITDA is
sustained above 3.0x, Moody's could downgrade the ratings.
Owens & Minor, headquartered in Mechanicsville, VA, is a nationwide
provider of distribution and logistics services to the healthcare
industry. Owens & Minor operates two divisions: Global Solutions
that includes a comprehensive portfolio of products and services to
healthcare providers and manufacturers, and Global Products that
manufactures and sources medical surgical products. In 2022 Owens &
Minor had revenue of roughly $10 billion.
The principal methodology used in these ratings was Distribution
and Supply Chain Services published in February 2023.
PETROLIA ENERGY: Posts $762,435 Net Loss in Third Quarter
---------------------------------------------------------
Petrolia Energy Corporation has filed with the Securities and
Exchange Commission its Quarterly Report on Form 10-Q disclosing
a net loss attributable to common stockholders of $762,435 on $2.16
million of total revenue for the three months ended Sept. 30, 2022,
compared to a net loss attributable to common stockholders of
$117,309 on $1.72 million of total revenue for the three months
ended Sept. 30, 2021.
For the nine months ended Sept. 30, 2022, the Company reported a
net loss attributable to common stockholders of $1.50 million on
$5.13 million of total revenue compared to a net loss attributable
to common stockholders of $1.60 million on $4.05 million of total
revenue for the nine months ended Sept. 30, 2021.
As of Sept. 30, 2022, the Company had $8.96 million in total
assets, $11.57 million in total liabilities, and a total
stockholders' deficit of $2.61 million.
Petrolia stated, "The Company has suffered recurring losses from
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern. We plan to
generate profits by working over existing wells, reducing general
and administrative expenses and resolving ongoing litigation.
However, we may need to raise additional funds to workover wells
through the sale of our securities, through loans from third
parties or from third parties willing to pay our share of drilling
and completing the wells. We do not have any commitments or
arrangements from any person to provide us with any additional
capital.
"If additional financing is not available when needed, we may need
to cease operations. There can be no assurance that we will be
successful in raising the capital needed to recomplete oil or gas
wells nor that any such additional financing will be available to
us on acceptable terms or at all.
"Management believes that actions presently being taken to obtain
additional funding provide the opportunity for the Company 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/0001368637/000149315223008235/form10-q.htm
About Petrolia
Petrolia Energy Corporation is engaged in the exploration and
development of oil and gas properties. Since 2015, the Company
has established a strategy to acquire, enhance and redevelop
high-quality, resource in place assets. As of 2018, the Company
has included strategic acquisitions in western Canada while
actively pursuing the strategy to execute low-cost operational
solutions, and affordable technology.
Houston, Texas-based M&K CPAS, PLLC, the Company's auditor since
2019, issued a "going concern" qualification in its report dated
Dec. 9, 2022, citing that the company has an accumulated deficit at
Dec. 31, 2021 and 2020 and has a working capital deficit at
Dec. 31, 2021, which raises substantial doubt about its ability to
continue as a going concern.
PHOENIX HOLDINGS: Seeks to Extend Plan Exclusivity to June 19
-------------------------------------------------------------
Phoenix Holdings & Investments LLC aka Phoenix Holdings and
Investments LLC asks the U.S. Bankruptcy Court for the Eastern
District of New York to extend the period during which it has the
exclusive right to file a Chapter 11 plan and to solicit votes
thereon from March 21, 2023 to June 19, 2023.
The Debtor asserted that its Chapter 11 case is sufficiently large
and complex to warrant the extension. The Debtor further explained
that the existence of unresolved contingencies and the
need to resolve claims that may have a substantial effect on a
.plan warrants an extension of exclusivity.
Phoenix Holdings & Investments LLC aka Phoenix Holdings and
Investments LLC is represented by:
Avrum J. Rosen, Esq.
Alex E. Tsionis, Esq.
LAW OFFICES OF AVRUM J. ROSEN, PLLC
38 New Street
Huntington, NY 11743
Tel: (631) 423-8527
Email: arosen@ajrlawny.com
atsionis@ajrlawny.com
About Phoenix Holdings & Investments
Phoenix Holdings & Investments, LLC is a Brooklyn, N.Y.-based
company engaged in renting and leasing real estate properties. It
is the fee simple owner of a real property located at 512 Classon
Ave., Brookyln, which is valued at $1.1 million.
Phoenix Holdings & Investments filed its voluntary petition for
Chapter 11 protection (Bankr. E.D.N.Y. Case No. 22-40292) on Feb.
18, 2022, listing $1,100,000 in assets and $2,056,355 in
liabilities. On Feb. 22, 2022, the case was transferred to the
appropriate office under Case No. 22-70303. On May 9, 2022, the
case was reassigned from Judge Nancy Hershey Lord to Judge
Elizabeth S. Stong and was assigned a new case number (Case No.
22-40981).
The Law Offices of Avrum J. Rosen, PLLC serves as the Debtor's
legal counsel.
PREMIER CAJUN KINGS: Commences Chapter 11 Bankruptcy Protection
---------------------------------------------------------------
William Thornton of AL.com reports that Premier Cajun Kings LLC, a
Popeyes franchisee which began in the Birmingham metro area, filed
for bankruptcy Tuesday, March 14, 2023, following the death of its
owner last 2022.
Premier Cajun Kings, which listed a Peachtree Corners, Ga.,
address, filed for bankruptcy in the Northern District of Alabama.
The company has $10 million in assets, with $20.1 million in
liabilities and $8.2 million in secured debt.
QSR reported the franchise company owned stores in Alabama, Georgia
and Tennessee, beginning in 2018, and at its height employed nearly
500 workers.
Its founder, Manraj "Patrick" Sidhu, died last 2022.
The company then reported "great operational instability,"
according to court documents, due to high inflation, interest
rates, and labor difficulties.
According to the magazine, Premier Cajun Kings has closed 10 stores
in Alabama and Tennessee, and an 11th was closed by a landlord. It
still operates 19 stores.
The company has worked out a limited license agreement with Popeyes
to initiate a sales process. The buyer will enter into a new
franchise agreement.
About Premier Cajun Kings
Premier Cajun Kings is a Popeyes franchisee which began in the
Birmingham metro area.
Premier Cajun Kings sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ala. Case No. 23-00656) on March 14,
2023. In the petition filed by Joginder Sidhu, Personal Rep. for
Estate of Manraj Sidhu (deceased), the Debtor reported assets
between $1 million and $10 million, and liabilities between $10
million and $50 million.
The case is overseen by Honorable Bankruptcy Judge D. Sims
Crawford.
The Debtor is represented by:
Jesse S. Vogtle, Jr., Esq.
HOLLAND & KNIGHT LLP
1901 Sixth Avenue North, Suite 1400
Birmingham, AL 35203
Tel: (205) 226-5700
Email: jesse.vogtle@hklaw.com
PREMIER CAJUN: Bankruptcy Administrator Appoints Creditors Panel
----------------------------------------------------------------
The U.S. Bankruptcy Administrator for the Northern District of
Alabama appointed an official committee to represent unsecured
creditors in the Chapter 11 case of Premier Cajun Kings, LLC.
The committee members are:
1. J.I.L Enterprises, Inc.
Attn: Charles D. Warren
1836 Polo Court
Hoover, AL 35226-3863
Email: jilmin33@gmail.com
jilmin33@yahoo.com
2. Hendon & Huckestein Architects, PC
Attn: Erik N. Hendon
2126 Morris Avenue
Birmingham, AL 35203
Email: ehendon@hplusha.com
3. FallBrook MHP, LLC
Attn: Brad Dunn
26895Aliso Creek Road
B876
Aliso Viejo, CA 92656
Email: 4bfdunn@gmail.com
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About Premier Cajun Kings
Premier Cajun Kings, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Ala. Case No. 23-00656) on March
14, 2023. In the petition signed by Joginder Sidhu, Personal Rep.
for Estate of deceased sole member Manraj Sidhu, the Debtor
disclosed up to $10 million in assets and up to $50 million in
liabilities.
Judge D. Sims Crawford oversees the case.
Jesse S. Vogtle, Jr., Esq., at Holland and Knight, LLP, represents
the Debtor as legal counsel.
QUORUM HEALTH: Community Health Avoids Part of Bankruptcy Suit
--------------------------------------------------------------
Andrew Scurria of The Wall Street Journal reports that Community
Health Systems Inc. avoided part of a bankruptcy-court lawsuit
alleging it defrauded creditors when it collected a $1.2 billion
dividend from its spinoff of rural health operator Quorum Health
Corp. in 2016.
Judge Laurie Selber Silverstein of the U.S. Bankruptcy Court in
Wilmington, Del., on Thursday, March 16, 2023, dismissed some, but
not all, of a creditor lawsuit alleging that CHS loaded up Quorum
with excessive debt when it was spun off that rendered it insolvent
from its inception and on a path to chapter 11.
About Quorom Health Care Services
Headquartered in Brentwood, Tennessee, Quorum Health (NYSE: QHC) --
http://www.quorumhealth.com/-- is an operator of general acute are
hospitals and outpatient services in the United States. Through
its subsidiaries, the Company owns, leases or operates a
diversified portfolio of 24 affiliated hospitals in rural and
mid-sized markets located across 14 states with an aggregate of
1,995 licensed beds. The Company also operates Quorum Health
Resources, LLC, a leading hospital management advisory and
consulting services business.
Quorum Health incurred net losses attributable to the company of
$200.25 million in 2018, $114.2 million in 2017, and $347.7 million
in 2016.
As of Sept. 30, 2019, Quorum Health had $1.52 billion in total
assets, $1.72 billion in total liabilities, $2.27 million in
redeemable non-controlling interest, and a total deficit of $203.36
million.
On April 7, 2020, Quorum Health Corporation and 134 affiliates
sought Chapter 11 protection (Bankr. D. Del. Lead Case No.
20-10766) to seek confirmation of a pre-packaged plan.
The Debtors hired McDermott Will & Emery LLP and Wachtell, Lipton,
Rosen & Katz as legal counsel, MTS Health Partners, L.P. as
financial advisor, and Alvarez & Marsal North America, LLC. as
restructuring advisor. Epiq Corporate Restructuring, LLC, is the
claims agent.
RLI SOLUTIONS: Exclusivity Period Extended to May 14
----------------------------------------------------
Judge Gregory L. Taddonio of the U.S. Bankruptcy Court for the
District of Pennsylvania extended RLI Solutions Company's
.exclusive period to file a Chapter 11 plan to May 14, 2023.
The.judge also extended the Debtor's exclusive period to solicit
acceptance and seek confirmation of a Chapter 11 plan to July 12,
2023.
The entry of the Order, however, is subject to the Court's
approval of the Stipulation and Order Resolving the Response to
Motion for Order (I) Extending Exclusive Period to File and Solicit
Acceptances of a Chapter 11 Plan and (II) Extending Deadline to
File Plan and Disclosure Statement. If the Stipulation is not
approved on a timely basis, the extension may be revoked.
About RLI Solutions Company
RLI Solutions Company, doing business as Ronald Lane Inc., sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
W.D. Pa. Case No. 22-21375) on July 17, 2022, listing as much as
$10 million in both assets and liabilities. Christopher Lane,
president of RLI Solutions Company, signed the petition.
Judge Thomas P. Agresti oversees the case.
Donald R. Calaiaro, Esq., at Calaiaro Valencik is the Debtor's
legal counsel.
ROCK SPLITTERS: Wins Cash Collateral Access Thru April 13
---------------------------------------------------------
The U.S. Bankruptcy Court for the District of Massachusetts,
Central Division, authorized Rock Splitters, Inc. to continue using
cash collateral through April 13, 2022.
A hearing on the Debtor's further use of cash collateral is set for
April 13 at 11 a.m.
As previously reported by the Troubled Company Reporter, the Debtor
owes the Internal Revenue Service approximately $615,000 in
prepetition tax liabilities. Approximately all of this amount is
subject to tax liens.
The Debtor owes the Massachusetts Department of Revenue
approximately $82,000 in prepetition tax liabilities of which
approximately $59,000 is asserted to be secured.
Nearly all of the tax debt purported to be owed is for withholding
taxes. The taxes have been personally assessed against the Debtor's
principal and he is on a payment plan with both the DOR and IRS.
On August 8,2022, a judgment creditor, Huhtala Oil and Templeton
Garage, Inc., seized certain assets of the Debtor including a
truck, a compressor and a drilling machine. Upon the filing of the
case the assets were released to the Debtor.
The Court said the Massachusetts Department of Revenue is granted a
continuing and uninterrupted replacement lien in the Debtor's
assets to the same perfection, validity, priority, and extent that
MDOR held at the time of the filing of the Chapter 11 petition.
A copy of the order is available at https://bit.ly/3nl91Ii from
PacerMonitor.com.
About Rock Splitters
Rock Splitters, Inc. is engaged in the business of blasting,
drilling, and splitting rocks in construction.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. D. Mass. Case No. 22-40584) on Aug. 10,
2022, listing as much as $1 million in both assets and liabilities.
David Mawhinney serves as Subchapter V trustee.
Judge Elizabeth D. Katz oversees the case.
James O'Connor, Jr., Esq., at Nickless, Phillips and O'Connor
serves as the Debtor's bankruptcy counsel.
RV DOCTOR: Seeks Cash Collateral Access
---------------------------------------
RV Doctor, Inc. asks the U.S. Bankruptcy Court for the Middle
District of Florida, Fort Myers Division, for authority to use cash
collateral in accordance with the budget and provide adequate
protection.
The Debtor seeks to obtain an order authorizing the use of cash
collateral generally and for purposes, which include:
a) Care, maintenance, and preservation of the Debtor's
assets;
b) Payment of business expenses;
c) Payment of unsecured creditors pursuant to a confirmed plan
of reorganization; and
d) Costs of administration in the Chapter 11 case.
The parties that assert an interest in the Debtor's cash collateral
are Advantage Merchant Funding, Eminent Funding, and Rapid
Financial.
About RV Doctor, Inc.
RV Doctor, Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 23-00256) on March 8,
2023. In the petition signed by Janice M. Akard, president, the
Debtor disclosed up to $50,000 in assets and up to $10 million in
liabilities.
Judge Caryl E. Delano oversees the case.
Richard Johnston, Jr., Esq., at Johnston Law, PLLC, represents the
Debtor as legal counsel.
SC BEACH: Condominium Sale Proceeds to Fund Plan Payments
---------------------------------------------------------
S.C. Beach Partnership, LLC, filed with the U.S. Bankruptcy Court
for the District of South Carolina a Disclosure Statement for
Chapter 11 Plan of Reorganization dated March 21, 2023.
SCBP is a Delaware limited liability company. It was formed on
February 15, 2018. SCBP owns and operates 893 ownership interests
in 159 condominiums (the "Condominiums") in the Yachtsman Resort
located at 1304 N. Ocean Boulevard, Myrtle Beach, South Carolina.
SCBP continues to manage its business affairs and to maintain the
property of the Estate as a debtor-in-possession pursuant to 11
U.S.C. §§ 1107(a) and 1108. Its goal in this Chapter 11 case is
to arrange a sale of the condominiums used in the Yachtsman Resort
timeshare plan (the "Timeshare Plan"), which should end its
obligations (and the obligations of other co-owners) in regard to
such property, and to use its share of the sale proceeds for the
payment of its creditors and, possibly, a distribution to its
owner.
This planned course of action is necessary. The Yachtsman Interval
Owners Association, Inc. (the "IOA") does not have the financial
ability to continue operating and maintaining the property under
the timeshare plan, as evidenced by the IOA's termination of the
Timeshare Plan in February 2022.
SCBP is informed and believes that the sale of the Condominiums is
necessary and appropriate. The Condominiums are presently operating
on only a very limited basis, pending their sale. The IOA is
presently operating the Condominiums and retaining the income to
fund its operating costs without further assessments to the owners.
SCBP has explored, and continues to explore, the most effective
means for marketing the Condominiums for sale. At present, until
resolution of the Adversary Proceeding, SCBP is limited in its
ability to market the property, as it does not yet have the ability
to offer full, consolidated title to the Condominiums to a
potential buyer. However, SCBP and the IOA have been in discussions
with an auction company and a real estate broker about a possible
joint effort, whereby the real estate broker would market the
Condominiums to potential buyers for a sale by auction conducted by
the auction company. This approach has been successful in other
cases of former timeshare condominiums.
The proceeds of the sale of the Condominiums will be used first to
pay the closing costs of the sale, consistent with normal and
customary Seller closing costs; second to payment of the ad valorem
taxes due Horry County, South Carolina on the Condominiums (which
should be the prorated amount due as of the sale closing); and next
to pay the costs of the Adversary Proceeding and this Chapter 11
case (including all legal fees and expenses, and any other approved
professional fees and expenses, if any), as necessary costs to
enable and make the sale.
After those payments, the proceeds will be prorated among the
ownership interests of SCBP, the IOA, VTI and other Active Owners
in the Condominiums and distributed to them. The portions of the
sale proceeds due to SCBP, the IOA and VTI for their ownership
interests will be directly paid to them at closing, or immediately
after closing. The portions due to other Active Owners will be paid
to the IOA for distribution to Active Owners as appropriate.
SCBP projects that its share of the net sale proceeds will be
sufficient for it to fully pay, or substantially pay, its debt
obligations. The actual payment amounts will not be known until the
sale of the Condominiums has been accomplished.
Class 2 of the Plan consists of the general non-priority unsecured
claims against the Estate. This class is impaired. The creditors in
Class 2 will receive payment after any priority claims have been
paid, and Class 2 claims will be paid on a pro rata basis from the
SCBP Funds. SCBP will make the distribution to Class 2 within 90
days after the closing of the sale of the Condominiums becomes
final. Whether funds shall exist for payment to Class 2 creditors,
and the amount available (if any), will be determined by the sale
price realized for the Condominiums. SCBP will file any objections
it asserts to filed claims within 30 days after confirmation of the
Plan.
Class 3 is comprised of the member ownership interest held by HPP
as the sole Member of SCBP. HPP shall retain is member ownership
interest in SCBP. Class 3 is unimpaired.
The sale of the Condominiums will provide the source of payment of
SCBP's debts. The sale of the Condominiums will be made under a
Sale Motion accompanied by a Bidding Procedures Motion, after the
Adversary Proceeding has been completed to enable the sale of
consolidated title to the property.
A full-text copy of the Disclosure Statement dated March 21, 2023
is available at https://bit.ly/3lHXulY from PacerMonitor.com at no
charge.
Attorneys for S.C. Beach Partnership:
Julio E. Mendoza, Jr., Esq.
Nexsen Pruet, LLC
1230 Main Street, Suite 700 (29201)
Post Office Drawer 2426
Columbia, SC 29202
Telephone: 803-540-2026
Email: rmendoza@nexsenpruet.com
About SC Beach Partnership
SC Beach Partnership owns fractional tenant in common ownership
interest in 159 apartment units of The Yachtsman Resort (Horizontal
Property Regime), located at 1304 N. Ocean Blvd. in Myrtle Beach,
SC. The value of Debtor's interest is $993,343.
SC Beach Partnership, LLC DBA Edisto Vacay filed its voluntary
petition for relief under Chapter 11 of the Bankruptcy Code (Bankr.
D.S.C. Case No. 22-03258) on Nov. 29, 2022. The petition was signed
by Alexander Krakovsky as manager. At the time of filing, the
Debtor estimated $1,098,058 in assets and $2,902,370 in
liabilities.
Judge Elisabetta Gm Gasparini presides over the case.
Julio E. Mendoza, Jr., Esq. at NEXSEN PRUET, LLC, serves as the
Debtor's counsel.
SERENITY HOMES: Case Summary & One Unsecured Creditor
-----------------------------------------------------
Debtor: Serenity Homes of TN LLC
103 Hwy 259
Portland, TN 37148
Chapter 11 Petition Date: March 22, 2023
Court: United States Bankruptcy Court
Middle District of Tennessee
Case No.: 23-01049
Judge: Hon. Charles M. Walker
Debtor's Counsel: Gray Waldron, Esq.
DUNHAM HILDEBRAND, PLLC
2416 21st Ave S, Ste 303
Nashville, TN 37212
Tel: 629-777-6519
Fax: 615-777-3765
Email: gray@dhnashville.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $500,000 to $1 million
The petition was signed by Eileen Santangelo as authorized member.
The Debtor listed PNC Bank as its sole unsecured creditor holding a
claim of $2,100.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/5JIQ52Q/Serenity_Homes_of_TN_LLC__tnmbke-23-01049__0001.0.pdf?mcid=tGE4TAMA
SOLER & SOLER: Taps Kingcade and Leiderman Shelomith as Co-Counsel
------------------------------------------------------------------
Soler & Soler Hauling, Inc. seeks approval from the U.S. Bankruptcy
Court for the Southern District of Florida to hire Kingcade, Garcia
& McMaken, P.A. and Leiderman Shelomith + Somodevilla, PLLC, d/b/a
LSS Law as its co-counsel.
The firm will render these services:
a. give advice to the Debtor with respect to its powers and
duties as a debtor-in-possession;
b. advise the Debtor with respect to its responsibilities in
complying with the U.S. Trustee's Operating Guidelines and
Reporting Requirements and with the rules of the Court;
c. prepare motions, pleadings, orders, applications, adversary
proceedings, and other legal documents necessary in the
administration of the case;
d. protect the interests of the Debtor in all matters pending
before the Court;
e. represent the Debtor in negotiation with its creditors in
the preparation of a plan; and
f. perform all other legal services.
The counsel will be paid at these hourly rates:
Timothy S. Kingcade, Esq. $500
Zach B. Shelomith, Esq. $500
Jessica McMaken, Esq. $400
Paraprofessionals $100 to $125
The counsel received a retainer in the amount of $35,000.
As disclosed in the court filings, neither Leiderman Shelomith nor
Kingcade represents any interest adverse to the Debtor, its estate,
or its creditors.
The firms can be reached through:
Timothy S. Kingcade, Esq.
KINGCADE, GARCIA & MCMAKEN, P.A.
1370 Coral Way
Miami, FL 33145
Telephone: (305) 285-9100
Email: scanner@miamibankruptcy.com
Zach B. Shelomith, Esq.
LSS LAW
2699 Stirling Road, Suite C401
Ft. Lauderdale, FL 33312
Tel: (954) 920-5355
Fax: (954) 920-5371
Email: zbs@lss.law
About Soler & Soler Hauling
Soler & Soler is a family-owned cargo hauling company that operates
interstate in 48 states.
Soler & Soler Hauling, Inc. filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No.
23-11917) on March 10, 2023. The petition was signed by Edisley
Soler Negrin as president. At the time of filing, the Debtor
estimated $1,187,949 in assets and $5,946,472 in liabilities.
Timothy S. Kingcade, Esq. at KINGCADE, GARCIA & MCMAKEN, P.A.
represents the Debtor as counsel.
SORRENTO THERAPEUTICS: Hires Latham & Watkins as Co-Counsel
-----------------------------------------------------------
Sorrento Therapeutics, Inc. and its affiliates seek approval from
the U.S. Bankruptcy Court for the Southern District of Texas to
hire Latham & Watkins, LLP as their bankruptcy co-counsel.
The firm will render these services:
a. advise the Debtors with respect to their powers and duties
as debtors in possession in the continued management and operation
of their businesses and properties;
b. advise and consult on the conduct of the Chapter 11 Cases,
including all of the legal and administrative requirements of
operating in chapter 11;
c. advise the Debtors and take all necessary action 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' interests in negotiations
concerning litigation in which the Debtors are involved;
d. analyze proofs of claim filed against the Debtors and
object to such claims as necessary;
e. investigate any potential causes of action that the Debtors
may have based on conduct that occurred prior to the Petition Date;
f. advise and represent the Debtors in certain non-bankruptcy
litigation (where the Debtors have affirmative claims that could
provide value to the Debtors' estates) and any mediation thereof;
g. represent the Debtors in connection with obtaining
authority to continue using cash collateral;
h. attend meetings and negotiate with representatives of
creditors, interest holders, and other parties in interest;
i. analyze executory contracts and unexpired leases and
potential assumptions, assignments, or rejections of such contracts
and leases;
j. prepare pleadings in connection with the Chapter 11 Cases,
including motions, applications, answers, orders, reports, and
papers necessary or otherwise beneficial to the administration of
the Debtors' estates;
k. advise the Debtors in connection with any potential sale of
assets;
l. take necessary action on behalf of the Debtors to obtain
approval of a disclosure statement and confirmation of a chapter 11
plan;
m. appear before this Court or any appellate courts to protect
the interests of the Debtors' estates before those courts;
n. advise on corporate, securities, litigation, environmental,
finance, tax, employee benefits, and other legal matters; and
o. perform all other necessary legal services for the Debtors
in connection with the Chapter 11 Cases.
The firm will be paid at these rates:
Partners $1,360 to $2,230 per hour
Counsel $1,300 to $1,690 per hour
Associates $705 to $1,400 per hour
Professional Staff $210 to $1,050 per hour
Paralegals $300 to $660 per hour
In addition, the firm will receive reimbursement for out-of-pocket
expenses incurred.
In accordance with Appendix B-Guidelines for reviewing fee
applications filed by attorneys in larger Chapter 11 cases, Latham
& Watkins 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: The firm's current hourly rates for services rendered
on behalf of the Debtors are as follows: $1,360 to $2,230 for
partners; $1,300 to $1,690 for counsel; $705 to $1,400 for
associates; $210 to $1,050 for professional staff; and $300 to $660
for paralegals. These rates have been used since January of this
year, except for three matters for which the following rates were
used: $1,565 to $2,565 for partners; $1,500 to $1,985 for counsel;
$870 to $1,670 for associates; $220 to $1,320 for professional
staff; and $310 to $795 for paralegals.
During the prior calendar year, the firm used the following rates
for services rendered on behalf of the Debtors: $1,265 to $2,075
for partners; $1,210 to $1,720 for counsel; $655 to $1,300 for
associates; $190 to $965 for professional staff; and $270 to $600
for paralegals, except for two matters for which the following
rates were used: $1,455 to $2,385 for partners; $1,395 to $2,385
for counsel; $810 to $1,555 for associates; $205 to $1,200 for
professional staff; and $290 to $740 for paralegals. All material
financial terms have remained unchanged since the prepetition
period.
Question: Has your client approved your prospective budget and
staffing plan, and, if so, for what budget period?
Response: The firm has not provided the Debtors with a budget
and staffing plan.
Caroline Reckler, Esq., a partner at Latham & Watkins, 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.
Latham & Watkins can be reached through:
Caroline A. Reckler, Esq.
Latham & Watkins
330 North Wabash Avenue, Suite 2800
Chicago, IL 60611
Phone: +1.312.876.7663
Email: caroline.reckler@lw.com
About Sorrento Therapeutics
Sorrento Therapeutics, Inc. -- 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.
Judge David R. Jones oversees the cases.
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.
On Feb. 28, 2023, the U.S. Trustee for Region 7 appointed an
official committee to represent unsecured creditors in the Debtors'
Chapter 11 cases. The committee is represented by the law firms of
Norton Rose Fulbright US, LLP and Milbank, LLP.
SORRENTO THERAPEUTICS: Hires M3 Advisory as Financial Advisor
-------------------------------------------------------------
Sorrento Therapeutics, Inc. and its affiliates seek approval from
the U.S. Bankruptcy Court for the Southern District of Texas to
hire M3 Advisory Partners, LP as their financial advisor, and
designate Mohsin Y. Meghji, managing partner of M3, as their chief
restructuring officer.
CRO and M3 will provide the following services:
a) supervise, and if necessary, assist the Debtors in the
development and administration of their short-term cash flow
forecasting and related methodologies, as well as their cash
management planning;
b) provide such assistance as reasonably may be required by
management of the Debtors in connection with (i) development of
their business plan, (ii) any restructuring plans and strategic
alternatives intended to maximize the enterprise value and (iii)
any related forecasts that may be required by creditor
constituencies in connection with negotiations or by the Debtors
for other corporate purposes;
c) supervise, and if necessary, assist the professionals who
are representing the Debtors in the restructuring process or who
are working for the Debtors' various stakeholders to coordinate
their effort and individual work product in order to be consistent
with the Debtors' overall restructuring goals;
d) assist, if required, the Debtors in communications and
negotiations with their outside constituents, including creditors,
trade vendors and their respective advisors;
e) support the Debtors in obtaining debt or equity financing
to provide financing needed for implementation of their ongoing
business plan;
f) as CRO, in consultation and coordination with the Board,
serve as the principal liaison of the Debtors to the Debtors'
creditor and regulatory constituencies and other stakeholders with
respect to the financial and operational matters relating to the
Debtors;
g) as CRO, in consultation and coordination with the Board,
lead and direct the efforts of the Debtors and their professional
advisors to develop and implement restructuring plans and other
strategic alternatives intended to maximize the enterprise value of
the Debtors; and
h) provide such other services as are reasonable and customary
for a CRO in connection with an engagement of this nature or as M3
and the Debtors shall otherwise agree in writing.
The full-time services of Mr. Meghji as CRO will be invoiced at a
flat monthly rate of $225,000.
M3 personnel will be paid at these hourly rates:
Managing Partner N/A
Senior Managing Director $1,245
Managing Director $1,025 - $1,150
Director $840 - $945
Vice President $750
Senior Associate $650
Associate $550
Analyst $450
In addition to the above fees, M3 will be entitled to a fee of
$1,800,000 upon final approval by the Court of a
debtor-in-possession financing facility and a fee of $1,250,000
upon consummation of a plan of reorganization.
M3 received a retainer in the amount of $250,000 from the Debtors.
Mohsin Meghji, a partner at M3 Advisory Partners, 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:
Mohsin Y. Meghji
M3 Advisory Partners, LP
1700 Broadway, 19th Fl.
New York, NY 10019
Tel: (212) 202-2200
Fax: (212) 531-4532
Email: mmeghji@m3-partners.com
About Sorrento Therapeutics
Sorrento Therapeutics, Inc. -- 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.
Judge David R. Jones oversees the cases.
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.
On Feb. 28, 2023, the U.S. Trustee for Region 7 appointed an
official committee to represent unsecured creditors in the Debtors'
Chapter 11 cases. The committee is represented by the law firms of
Norton Rose Fulbright US, LLP and Milbank, LLP.
SORRENTO THERAPEUTICS: Shareholders Want Official Committee
-----------------------------------------------------------
Evan Ochsner of Bloomberg Law reports bankrupt Sorrento
Therapeutics' shareholders are seeking to form a committee to
advocate for their interests, arguing that the pharmaceutical
company is solvent.
The San Diego-based company has reported having more assets than
liabilities, but still filed for bankruptcy to resolve a short-term
liquidity crunch caused by an unfavorable arbitration decision,
Sorrento's chief restructuring officer said in a February 2023
filing.
The Chapter 11 case's unique circumstance would necessitate the US
Trustee, a Justice Department's bankruptcy watchdog, to create an
equity holder committee, shareholders said in an emergency motion
Thursday, March 16, 2023.
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.
STANADYNE LLC: Seeks to Hire Alvarez & Marsal as Financial Advisor
------------------------------------------------------------------
Stanadyne LLC and affiliate Pure Power Technologies, Inc. seeks
approval from the U.S. Bankruptcy Court for the District of
Delaware to hire Alvarez & Marsal North America, LLC as their
financial advisors.
The firm's services include:
a. assist with the development and implementation of cash
management strategies, tactics, and processes, including assist
with development and management of a 13-week cash forecast, and
work with the Debtors and other professionals and coordinate the
activities of the representatives of other constituencies in the
cash management process;
b. assist in the performance of a financial review of the
Debtors' businesses, including, but not limited to, a review and
assessment of financial information, short and long-term projected
cash flows, and operating performance;
c. assist with analysis and considerations to support
negotiations with the Debtors' customers and suppliers, including:
i. development of commercial strategies by
customer/supplier;
ii. part profitability and related analysis to support
commercial negotiations; and
iii. negotiations with customers and support for diligence
conducted by customers or customer representatives;
d. assist in discussions with and provide information to the
Debtors' lenders, the Committee, potential investors, the U.S.
Trustee, and other key stakeholders, as necessary or as directed by
the Debtors;
e. prepare a sell side financial diligence report based on and
limited to the scope outlined on Appendix I to the Engagement
Letter, it being understood that these activities may be modified
as the work progresses based on the Debtors' instructions;
f. review of the Debtors' balance sheet and provision of
margin analysis and trends, and related provision of expert
testimony;
g. provide other support for any sale process undertaken by
the Debtors' investment banker;
h. assist in the performance of cost/benefit analyses related
to executory contracts and the assumption/rejection of each;
i. assist in managing the administrative requirements of the
Bankruptcy Code, including assisting with development of bankruptcy
schedules and statement of financial affairs, monthly operating
reports, and other post-petition reporting requirements, assisting
with claim reconciliation efforts, and assisting in the development
of a disclosure statement and chapter 11 plan;
j. report to the board of directors as desired or directed by
the Debtors' Chief Executive Officer; and
k. other activities as are reasonably requested by the
Debtors.
The firm's services include:
Managing Directors $1,025 - $1,375
Directors $775 - $975
Analysts/Associates $425 - $775
Charles Moore, a managing director with Alvarez & Marsal, assured
the court that the firm does not hold or represent any interest
materially adverse to the Debtors' estates; and believes it is a
"disinterested person" within the meaning of section 101(14) of the
Bankruptcy Code, as required by sections 327(a) and 328 of the
Bankruptcy Code.
The firm can be reached through:
Charles Moore
Alvarez & Marsal Holdings, LLC
755 W. Big Beaver Rd, Suite 650
Troy, MI 48084
Phone: +1 248 936 0814
Fax: +1 248 936 0801
Email: cmoore@alvarezandmarsal.com
About Stanadyne LLC
Stanadyne LLC is a global automotive technology offering
engine-based fuel and air management systems. Stanadyne is a
developer and manufacturer of fuel pumps and fuel injectors for
diesel and gasoline engines.
Stanadyne LLC and its affiliates sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 23-10207) on
Feb. 16, 2023. In the petition signed by John Pinson, chief
executive officer, the Debtor disclosed up to $500 million in both
assets and liabilities.
Judge John T. Dorsey oversees the case.
The Debtors tapped Young Conaway Stargatt & Taylor, LLP and Hughes
Hubbard and Reed LLP as co-general bankruptcy counsel, Kroll, LLC
as financial advisor, and Kurtzman Carson Consultants LLC as
claims, noticing, and balloting agent and administrative advisor.
STANADYNE LLC: Seeks to Hire Angle Advisors as Investment Banker
----------------------------------------------------------------
Stanadyne LLC and affiliate Pure Power Technologies, Inc. seek
approval from the U.S. Bankruptcy Court for the District of
Delaware to hire Angle Advisors LLC as their investment banker.
The firm's services include:
a. identifying and/or initiating potential Transactions;
b. reviewing and analyzing the Debtors' assets and the
operating and financial strategies of the Debtors;
c. reviewing and analyzing the business plans and financial
projections prepared by the Debtors including, but not limited to,
testing assumptions and comparing those assumptions to historical
company and industry trends;
d. evaluating the Debtors' debt capacity in light of their
projected cash flows and assisting in the determination of an
appropriate capital structure for the Debtors;
e. assisting the Debtors and their other professionals in
reviewing the terms of any proposed Transaction, in responding
thereto and, if directed, in evaluating alternative proposals for a
Transaction;
f. advising the Debtors on the risks and benefits of
considering any potential Transaction with respect to the Debtors'
intermediate and long-term business prospects and strategic
alternatives to maximize the business enterprise value of the
Debtors;
g. reviewing and analyzing any proposals the Debtors receive
from third parties in connection with a Transaction, as
appropriate;
h. meeting with the Debtors' management team, board of
directors, managers, and/or shareholders (as applicable) to discuss
progress of Chapter 11 Cases and share transactional observations,
compare alternatives and make recommendations at reasonable
intervals;
i. advising the Debtors with respect to, and attending,
meetings of the Debtors' Board of Directors, creditor groups,
official constituencies, and other interested parties, as
necessary; and
j. rendering such other investment banking services as may be
agreed upon by Angle Advisors and the Debtors.
The firm will be paid as follows:
A. Monthly Fees: The Debtors shall pay Angle Advisors fees of
$120,000 per month until the sooner of a transaction, the expiry of
the term of the Engagement Letter, or termination of the Engagement
Letter. $20,000 of each Monthly Fee shall be credited against any
sale transaction fee; and, beginning with the fifth (5th) Monthly
Fee, an additional $50,000 of each Monthly Fee paid then and
thereafter to Angle Advisors shall be credited against any Sale
Transaction Fee. No portion of any Monthly Fee shall be credited
more than once, and in no event of credit taking or otherwise shall
any Sale Transaction Fee (inclusive of any amounts that are so
credited) be reduced below the minimum Sale Transaction Fee.
B. Transaction Fee(s)
i. Sale Transaction Fee: Upon the completion of a Sale
Transaction, Angle Advisors shall earn, and the Debtors shall
thereupon pay from the gross proceeds of such Sale Transaction, as
a cost of such sale transaction, a cash fee, calculated as
follows:
a. a minimum fee of $950,000.00; plus
b. In the event of a second (or multiple) completed
Sale Transaction(s), a further Sale Transaction Fee of $750,000 for
each subsequent sale transaction(s);
c. 2.5 percent of total consideration, in aggregate
for all completed Sale Transactions, between $285,000,000 and
$300,000,000, plus
d. 7.5 percent of total consideration, in aggregate
for all completed Sale Transactions, exceeding $300,000,000.
ii. Restructuring Transaction Fee: In the case of a
Restructuring Transaction in the Chapter 11 Cases, the effective
date of a reorganization or liquidation under chapter 11 pursuant
to an order of the Court, Angle Advisors shall earn, and the
Debtors shall promptly pay to Angle Advisors, a cash fee of
$750,000. No portion of the Monthly Fee shall be credited against
the Restructuring Transaction Fee.
The Debtors shall reimburse Angle Advisors on a monthly basis for
reasonable, documented out-of-pocket expenses incurred executing
the services.
As disclosed in the court filings, Angle Advisors is a
"disinterested person" within the meaning of section 101(14) of the
Bankruptcy Code, and as required by section 328(c) of the
Bankruptcy Code, and does not hold or represent an interest
materially adverse to the interests of the Debtors or the Debtors'
estates.
The firm can be reached through:
Clifton H. Roesler
Angle Advisors LLC
101 Southfield Road, 2nd Floor
Birmingham, MI 48009
Phone: 248-605-9502
Email: croesler@angleadvisors.com
About Stanadyne LLC
Stanadyne LLC is a global automotive technology offering
engine-based fuel and air management systems. Stanadyne is a
developer and manufacturer of fuel pumps and fuel injectors for
diesel and gasoline engines.
Stanadyne LLC and its affiliates sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 23-10207) on
Feb. 16, 2023. In the petition signed by John Pinson, chief
executive officer, the Debtor disclosed up to $500 million in both
assets and liabilities.
Judge John T. Dorsey oversees the case.
The Debtors tapped Young Conaway Stargatt & Taylor, LLP and Hughes
Hubbard and Reed LLP as co-general bankruptcy counsel, Kroll, LLC
as financial advisor, and Kurtzman Carson Consultants LLC as
claims, noticing, abd balloting agent and administrative advisor.
STIMWAVE TECHNOLOGIES: Joint Liquidating Plan Confirmed by Judge
----------------------------------------------------------------
Judge Karen B. Owens has entered findings of fact, conclusions of
law and order confirming the Second Amended Joint Plan of
Liquidation of Stimwave Technologies Incorporated and Stimwave
LLC.
The Debtors have proposed the Plan in good faith and not by any
means forbidden by law, thereby satisfying section 1129(a)(3) of
the Bankruptcy Code. In determining that the Plan has been proposed
in good faith, this Court has examined the totality of the
circumstances surrounding the filing of the Chapter 11 Cases, the
Plan itself, and the process leading to its formulation.
The Plan provides for the dissolution of the Debtors on, or as soon
as practicable after, the Effective Date and the liquidation of the
Debtors' property. Thus, section 1129(a)(11) of the Bankruptcy Code
is satisfied.
The Debtors, the Plan Administrator, and/or the Liquidating
Trustee, as applicable, are authorized to take or cause to be taken
all corporate actions necessary or appropriate to implement all
provisions of, and to consummate, the Plan and the Plan
Transactions, and to execute, enter into, or otherwise make
effective all documents arising in connection therewith, including,
without limitation, all Plan Documents, prior to, on, and after the
Effective Date.
The Plan Administrator or Liquidating Trustee, as applicable, shall
make all distributions required to be made to Holders of Allowed
Claims and Interests pursuant to the Plan and, if applicable, the
Liquidating Trust Agreement. The Plan Administrator or Liquidating
Trustee, as applicable, shall hold and distribute, as applicable,
the Net Distributable Assets or the Liquidating Trust Assets, and
the reserve and escrow accounts established pursuant to Article
IV.E of the Plan in accordance with the provisions of the Plan and,
if applicable, the Liquidating Trust Agreement.
The Liquidating Trust Agreement, substantially in the form filed
with the Plan Supplement, is hereby approved. The appointment of
Province, LLC as the Liquidating Trustee and the retention of the
professionals by the Liquidating Trust, on the terms set forth in
the Plan and Liquidating Trust Agreement, is hereby approved.
Counsel to the Debtors:
Robert A. Klyman, Esq.
Michael G. Farag, Esq.
GIBSON, DUNN & CRUTCHER LLP
333 South Grand Avenue
Los Angeles, CA 90071-3197
Tel: (213) 229-7000
Fax: (213) 229-7520
E-mail: rklyman@gibsondunn.com
mfarag@gibsondunn.com
- and -
Matthew J. Williams, Esq.
200 Park Avenue
New York, NY 10166-0193
Tel: (212) 351-4000
Fax: (212) 351-4035
E-mail: mjwilliams@gibsondunn.com
- and -
Michael R. Nestor, Esq.
Andrew L. Magaziner, Esq.
Elizabeth S. Justison, Esq.
Jared W. Kochenash, Esq.
YOUNG CONAWAY STARGATT & TAYLOR, LLP
Rodney Square, 1000 North King Street
Wilmington, DE 19801
Tel: (302) 571-6600
Fax: (302) 571-1253
E-mail: mnestor@ycst.com
amagaziner@ycst.com
ejustison@ycst.com
jkochenash@ycst.com
About Stimwave
Stimwave Technologies Incorporated and Stimwave LLC manufacture,
distribute, and provide ongoing support for implantable, minimally
invasive neurostimulators, which are used as a treatment for
chronic intractable pain.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. LeaD Case No. 22-10541) on June 15,
2022. In the petition signed by Aure Bruneau, as manager, the
Debtors disclosed up to $100 million in assets and up to $50
million in liabilities.
Young Conaway Stargatt and Taylor, LLP and Gibson, Dunn and
Crutcher LLP serve as the Debtors' legal counsel.
The Debtors also tapped Honigman LLP and Jones Day as special
counsel; Riverson RTS, LLC as financial advisor; and GLC Advisors
and Co., LLC and GLCA Securities, LLC as investment bankers. Kroll
Restructuring Administration is the Debtors' administrative advisor
and notice, claims, solicitation and balloting agent.
On July 6, 2022, the U.S. Trustee for Region 3 appointed an
official committee of unsecured creditors in these cases. Culhane
Meadows, PLLC and Province, LLC serve as the committee's legal
counsel and financial advisor, respectively.
STOCKTON GOLF: Hires Sugarman & Company as Interest Rate Expert
---------------------------------------------------------------
Stockton Golf and Country Club seeks approval from the U.S.
Bankruptcy Court for the Eastern District of California to hire
Randy Sugarman with Sugarman & Company, LLP as its interest rate
expert for a contested plan confirmation hearing in the ordinary
course of business.
A flat fee of $10,000 for the preparation of an interest rate
report to be included in a declaration addressing the appropriate
Plan interest rate on the secured claims of Bank of Stockton and
other provisions with respect to the Debtor in Possession’s
treatment of Bank of Stockton in its proposed plan of
reorganization, as it may be amended.
If testimony is required beyond the execution of the
report/declaration, such time will be charged at $545 per hour plus
reasonable expenses,
The firm can be reached through:
Randy Sugarman
Sugarman & Company, LLP
505 Montgomery St
San Francisco, CA 94111
Phone: +1 415-314-6566
About Stockton Golf and Country Club
Stockton Golf and Country Club sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. E.D. Calif. Case No. 22-22585)
on Oct. 11, 2022, with between $1 million and $10 million in both
assets and liabilities.
Judge Christopher D. Jaime oversees the case.
Thomas A. Willoughby, Esq., at Felderstein Fitzgerald Willoughby
Pascuzzi & Rios, LLP is the Debtor's legal counsel.
STOCKTON GOLF: Seeks Approval to Hire Boss Deller as Accountant
---------------------------------------------------------------
Stockton Golf and Country Club seeks approval from the U.S.
Bankruptcy Court for the Eastern District of California to hire
Boss Deller & Associates, Inc. A Professional Corporation as
certified public accountant.
Boss Deller will provide accounting services, including the
preparation of tax returns and reviewed financials on an annual
basis.
The firm will receive a flat fee of $10,800 to prepare the reviewed
financial statements and $1,800 for the preparation of the tax
returns.
As disclosed in the court filing, Boss Deller does not hold or
represent any interest adverse to the Debtor or its estate.
The firm can be reached through:
Vicki McKnight, CPA
Boss Deller & Co
1218 11th St
Modesto, CA 95354
Phone: +1 209-577-2547
About Stockton Golf and Country Club
Stockton Golf and Country Club sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. E.D. Calif. Case No. 22-22585)
on Oct. 11, 2022, with between $1 million and $10 million in both
assets and liabilities.
Judge Christopher D. Jaime oversees the case.
Thomas A. Willoughby, Esq., at Felderstein Fitzgerald Willoughby
Pascuzzi & Rios, LLP is the Debtor's legal counsel.
STREAM TV: Seeks Bankruptcy Protection Prior to Asset Dispute Trial
-------------------------------------------------------------------
Rick Archer of Law360 reports that Stream TV Network on March 16,
2023, informed the Delaware Chancery Court that it has returned to
bankruptcy a week before the latest trial in its long-running
dispute with Hawk Investment Holdings over control of the
Philadelphia-based 3D television company's business.
Hawk Investment Holdings, Ltd., a creditor of Stream Network,
immediately filed a motion for entry of an order pursuant to 11
U.S.C. Sec. 362(d), modifying the automatic stay for the purposes
of allowing the Delaware Court of Chancery to proceed to a bench
trial originally scheduled for March 23, 2023.
"The Debtor has filed its bankruptcy petition, alongside the
petition of Technovative Media, Inc. as part of a baseless gambit
to avoid a trial in the Delaware Court of Chancery that was
scheduled to proceed on March 23, 2023. This is the third time
since 2021 that Stream has been in bankruptcy court, though this
time it seeks a new forum after a Delaware bankruptcy judge
dismissed the last two cases as having been brought in bad faith.
Hawk, Stream, and Technovative were days away from a trial in the
Delaware Court of Chancery that would resolve myriad of issues,
including the rights of the Secured Creditors under Delaware state
law. See Hawk Investment Holdings Limited v. Stream TV Networks,
Inc., C.A. No. 2022-0930-JTL (the "225 Action"). Stream contends
that the debts owed to the Secured Creditors are not outstanding
and disputes the Secured Creditors' rights under loan documents
signed by the Debtors, all governed by Delaware state law. In
validly exercising certain of those rights, Hawk removed Mathu
Rajan from his position as director of Technovative on October 17,
2022, and replaced Mr. Rajan with Shadron Stastne."
"The Delaware Court of Chancery is intimately familiar with this
dispute, and poised to rule in the 225 Action. Discovery in the
225 Action has been completed—the parties had submitted a
Pretrial Order and Opening Pre-Trial Briefs, and had agreed to have
a trial on a paper record less than one week from today. The case
is all but complete, save for less than a day of argument and the
Court of Chancery's final ruling. In the course of these Chapter
11 cases, this Court will face the very same questions underlying
the 225 Action regarding the nature of the Debtors’ obligations
to the Secured Creditors under the Hawk Notes and the SLS Notes.
To re-start the arduous process of fact finding and briefing at
this juncture would be wasteful of the Court's time and the
parties' time and money. Meanwhile, there are technology assets at
risk and employees who need to be compensated. The most efficient
path is to complete the last step of the 225 Action and then come
back to this Court to determine its effect on these Chapter 11
cases. The Delaware Court of Chancery has available dates on April
18th and April 20th for a one-day trial, should Hawk prevail on
this Motion, to serve that goal of judicial economy," Hawk
Investment added.
About Stream TV Networks
Stream TV Networks Inc. develops technology intended to display
three-dimensional content without the use of 3D glasses.
Stream TV Networks sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Penn. Case No. 23-10763) on March 15,
2023. In the petition filed by Mathu Rajan, as director, the
Debtor reported assets between $500 million and $1 billion and
estimated liabilities between $10 million and $50 million.
The case is overseen by Honorable Bankruptcy Judge Magdeline D.
Coleman.
The Debtor is represented by:
Rafael X. Zahralddin-Aravena, Esq.
LEWIS BRISBOIS BISGAARD & SMITH
550 E. Swedesford Road, Suite 270
Wayne, PA 19087
Tel: (302) 985-6004
Email: Rafael.Zahralddin@lewisbrisbois.com
STUBHUB HOLDCO: Moody's Affirms B3 CFR & Alters Outlook to Stable
-----------------------------------------------------------------
Moody's Investors Service affirmed StubHub Holdco Sub, LLC's
ratings, including its the B3 Corporate Family Rating, and changed
the outlook to stable from positive.
The outlook change to stable from positive and affirmation of
ratings reflect StubHub's weaker than expected operating
performance and earnings despite a strong rebound in live
entertainment post pandemic. Moody's expects that an improvement
in leverage and margins will be protracted as a result of recent
hikes in marketing spend and Moody's view that StubHub will
continue to aggressively pursue market share gains.
Affirmations:
Issuer: StubHub Holdco Sub, LLC
Corporate Family Rating, Affirmed B3
Probability of Default Rating, Affirmed B3-PD
Senior Secured First Lien Bank Credit Facility, Affirmed B3 to
(LGD3) from (LGD4)
Outlook Actions:
Issuer: StubHub Holdco Sub, LLC
Outlook, Changed To Stable From Positive
RATINGS RATIONALE
StubHub's B3 CFR reflects its high leverage, aggressive financial
policy and the substantial progress that is yet to be made in
achieving the expected merger synergies in full. Three years into
the viagogo and StubHub merger and with several quarters of
operating free of Covid restrictions, the company is yet to
establish a track record of steady EBITDA generation. Out of seven
quarters since the start of 2021, StubHub's Moody's adjusted EBITDA
was negative in five of seven quarters, and LTM 3Q 2022 Moody's
adjusted EBITDA was $65 million and Moody's adjusted EBITDA margin
was only 2.5%, significantly lower than Moody's previous
expectations. StubHub estimates that it has realized around $200
million of its anticipated $314 million synergies but does not
disclose the pace of the remaining synergy delivery.
Industry competition is intense and will challenge StubHub's plans
to gain market share. Governance risks also constrain the ratings
and include aggressive financial policy, tolerance of operating
with negative EBITDA for extended period and concentrated ownership
and voting control.
Nevertheless, StubHub continues to benefit from its asset-lite
business model, large scale, and strong brand recognition with
leading market positions in most major global regions including
North America. Liquidity is supported by typically positive working
capital cash flow and minimal capital spending leading to good
conversion of EBITDA to free cash flow.
StubHub's liquidity is adequate, supported by cash on hand ($382
million of unrestricted cash at the end of Q3 2022), minimal
capital expenditures and generally positive working capital inflows
from upfront cash receipts in advance of reimbursements to ticket
sellers. Stubhub's unrestricted cash balance has declined by
nearly 30% from 2021 year-end, when it was $554 million.
Year-to-date Q3 2022, Stubhub repaid $122 million preferred stock
and its free cash flow was negative $54 million for the first three
quarters of 2022 despite a significant working capital cash inflow.
As a result, at the end of Q3 2022, the company's cash ($382
million) was short of its payables due to sellers ($476 million).
Payments due to ticket sellers will likely increase from current
levels supporting positive working capital as the company's gross
market sales continue to grow. Sustaining cash balances below notes
due to sellers would present a credit concern.
StubHub has a $125 million senior secured revolver that expires in
February 2025. The effective availability on the revolver is
limited to under $43.75 million because of the springing covenant
requirement that the company does not currently meet. The revolver
is subject to a springing leverage covenant of 5.70x first lien
leverage maximum at 35% draw. The revolver was undrawn as of
September 30, 2022 and Moody's do not expect StubHub to rely on
revolver borrowing in 2023. StubHub's does not have near term
maturities. Its next funded debt maturity is in February 2027 when
the senior secured term loan comes due.
The B3 instrument ratings on the senior secured credit facility
(term loans and revolver) reflect the B3-PD probability of default
rating and an average expected family recovery rate of 50% at
default given a covenant-lite structure in an all first lien loan
capital structure.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings could be upgraded if StubHub can demonstrate consistent top
line growth and adjusted debt to EBITDA sustained under 6x without
addbacks. StubHub would also need to maintain good liquidity (net
of payments due to ticket sellers) with Moody's adjusted EBITDA
margins sustained above 25%.
Ratings could be downgraded if Moody's expects adjusted debt to
EBITDA will be sustained above 7.5x due to underperformance or debt
financed transactions. There would also be downward pressure on
ratings if StubHub's liquidity cushion erodes or if regulatory
actions or developments in the competitive landscape adversely
affect StubHub 's profitability or market share.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
StubHub provides an online marketplace for secondary tickets along
with payment support, logistics, and customer service. The company
is majority owned by Madrone Capital Partners, Bessemer Venture
Partners, and Eric Baker, CEO and founder, with Mr. Baker holding
majority voting control.
TESSEMAE'S LLC: Hires B. Riley Securities as Investment Banker
--------------------------------------------------------------
Tessemae's LLC seeks approval from the U.S. Bankruptcy Court for
the District of Maryland to employ B. Riley Securities, Inc. as its
exclusive investment banker.
The firm will render these services:
a. familiarize itself with business, operations, assets,
financial condition and prospects of the Debtor;
b. advise the Debtor in analyzing its strategic alternatives
and structuring and effecting the financial aspects of a sale;
c. design the appropriate process to effect and initiate any
sale, including an analysis of the various alternatives and, if
appropriate, the investors to be contacted for the sale;
d. assist the Debtor in the preparation of any appropriate
financial models, financial analysis, or marketing materials
necessary to initiate and effect any sale including those to be
provided to Counterparties in conjunction with any sale ;
e. solicit interest from Counterparties in any sale;
f. assist the Debtor and its other professionals in reviewing
and evaluating the terms of any proposed sale and, if directed,
negotiating the terms thereof;
g. coordinate with the Debtor's legal counsel regarding
matters related to the closing of a sale;
h. assist or participate in negotiations with parties in
interest, including any current or prospective creditors of,
holders of equity in, or claimants against the Debtor and/or their
respective representative in connection with a sale;
i. advise the Debtor with respect to, and attend, meetings of
the Debtor's Board of Directors and its committees, creditor
groups, official constituencies and other interested parties, as
necessary; and
j. provide relevant testimony with respect to any sale.
B. Riley will be compensated as follows:
-- Monthly Advisory Fee: $35,000 per month during the term of the
Agreement, with the first five (5) Monthly Advisory Fees to be
credited against the Transaction Fee. The initial Monthly Advisory
Fee shall be earned, due and payable upon the execution of this
Agreement by the Company. Thereafter, a Monthly Advisory Fee shall
be earned due and payable on each monthly anniversary of the date
of the Agreement.
-- Sale Fee: in the event the Company completes a Sale, a fee to
be paid upon the closing of any Sale equal to the sum of (i) 2.0
percent of Transaction Value up to and including $60 million, plus
(ii) 3.25 percent of Transaction Value in excess of $60 million,
provided; however, that the Sale Fee shall never be less than
$850,000.
Michael Fixler, co-head of restructuring at B. Riley Securities,
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:
Michael Fixler
B. Riley Securities, Inc.
150 North Riverside Plaza, Suite 2820
Chicago, IL 60606
Telephone: (312) 508-5780
Email: mfixler@brileyfin.com
About Tessemae's LLC
Tessemae's, LLC is a flavor-forward food Debtor that makes
clean-label, organic salad dressing. The Debtor is based in
Baltimore, Md.
Tessemae's sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Md. Case No. 23-10675) on Feb. 1, 2023.
In the petition signed by its chief strategy officer, Demian Costa,
the Debtor disclosed up to $10 million in assets and up to $50
million in liabilities.
The Debtor tapped Gary H. Leibowitz, Esq., at Cole Schotz PC as
legal counsel and Aurora Management Partners Inc. as financial
advisor.
DIP lenders Tesse Fund I, LLC, MCDJR-Tesse, LLC and PMCDTESSE, LLC,
are represented by Richard L. Costella, Esq., at Tydings &
Rosenberg, LLP.
TIMES SQUARE: $418-Million Debt Swap Plan Okayed
------------------------------------------------
Rick Archer of Law360 reports that a New York bankruptcy judge on
March 16, 2023, approved a $418.7 million debt-equity swap to end
the Chapter 11 case of the owner of the Crowne Plaza Times Square
Manhattan Hotel, rejecting a challenge by the U. S. Trustee's
Office to the plan's claims releases.
A copy of the Disclosure Statement dated Feb. 3, 2022, is available
at https://bit.ly/3Rxdnac from Stretto, the claims agent.
About Times Square JV
Times Square JV, LLC owns a building located at 1605 Broadway, New
York, in central Times Square (between West 48th and 49th Streets).
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.
Debtor TJV leases the premises to affiliate CPTS Hotel Lessee, LLC
pursuant to an Agreement of Lease dated as of Jan. 1, 2017, as
amended. 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 Debtor CPTS.
On Dec. 28, 2022, Times Square JV LLC, CPTS Hotel Lessee LLC, 1601
Broadway Owner LLC and 1601 Broadway Holdings LLC 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, TSJV reported assets and liabilities between $100 million
and $500 million.
Judge John P. Mastando III oversees the cases.
The Debtors tapped Seward & Kissel, LLP as bankruptcy counsel and
Emerald Capital Advisors Corp. as financial advisor. Stretto,
Inc., is the notice, claims and balloting agent and administrative
advisor.
On Jan. 10, 2022, the U.S. Trustee for Region 2 appointed an
official committee to represent unsecured creditors in the Debtors'
Chapter 11 cases. The committee is represented by DLA Piper LLP
(US).
TMK HAWK: New Mountain Marks $15.8M Loan at 35% Off
---------------------------------------------------
New Mountain Finance Corporation has marked its $15,813,000 loan
extended to TMK Hawk Parent, Corp. to market at $10,277,000 or 65%
of the outstanding amount, as of December 31, 2022, according to a
disclosure contained in New Mountain's Form 10-K for the fiscal
year ended December 31, 2022, filed with the Securities and
Exchange Commission on February 27, 2023.
New Mountain is a participant in a First lien Loan to TMK Hawk
Parent, Corp. The loan accrues interest at a rate of 8.26%
(L(Q)+3.5%)) per annum. The loan matures in August 2024.
New Mountain is a Delaware corporation that was originally
incorporated on June 29, 2010 and completed its initial public
offering on May 19, 2011. New Mountain is a closed-end,
non-diversified management Investment Company that has elected to
be regulated as a business development company under the Investment
Company Act of 1940, as amended. New Mountain Finance Advisers BDC,
L.L.C., its Investment Adviser, is a wholly owned subsidiary of New
Mountain Capital Group, L.P. New Mountain Capital is a firm with a
track record of investing in the middle market. New Mountain
Capital focuses on investing in defensive growth companies across
its private equity, credit and net lease investment strategies.
TMK Hawk Parent Corp. is the holding company of TriMark USA, LLC, a
foodservice equipment and supplies distributor.
TMK HAWK: New Mountain Marks $16.3M Loan at 35% Off
---------------------------------------------------
New Mountain Finance Corporation has marked its $16,395,000 loan
extended to TMK Hawk Parent, Corp. to market at $10,657,000 or 65%
of the outstanding amount, as of December 31, 2022, according to a
disclosure contained in New Mountain's Form 10-K for the fiscal
year ended December 31, 2022, filed with the Securities and
Exchange Commission on February 27, 2023.
New Mountain is a participant in a First lien Loan to TMK Hawk
Parent, Corp. The loan accrues interest at a rate of 8.26%
(L(Q+3.5%)) per annum. The loan matures in August 2024.
New Mountain is a Delaware corporation that was originally
incorporated on June 29, 2010 and completed its initial public
offering on May 19, 2011. New Mountain is a closed-end,
non-diversified management Investment Company that has elected to
be regulated as a business development company under the Investment
Company Act of 1940, as amended. New Mountain Finance Advisers BDC,
L.L.C., its Investment Adviser, is a wholly owned subsidiary of New
Mountain Capital Group, L.P. New Mountain Capital is a firm with a
track record of investing in the middle market. New Mountain
Capital focuses on investing in defensive growth companies across
its private equity, credit and net lease investment strategies.
TMK Hawk Parent Corp. is the holding company of TriMark USA, LLC, a
foodservice equipment and supplies distributor.
TRANSIT PHYSICAL: Court OKs Cash Collateral Access Thru April 12
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California,
Riverside Division, authorized Transit Physical Therapy PC, d/b/a
Transit Physical Therapy to use cash collateral on an interim basis
through the date of the continued hearing set for April 12, 2023 at
10:30 a.m.
The Debtor is permitted to use cash collateral in accordance with
the budget, with a 15% variance.
Each creditor with a security interest in cash collateral is
granted adequate protection in the form of a replacement lien,
dollar for dollar, in the same priority and to the same extent as
the creditor's pre-petition lien and security interest.
As previously reported by the Troubled Company Reporter, six
creditors have a blanket security interest that generally covers
"all of Debtor's assets" or other clearly stated language that
gives that creditor a security interest in Debtor's cash, accounts,
or accounts receivable:
1. The senior secured creditor is U.S. Small Business
Administration, secured by a UCC-1 Financing Statement filed on
April 7, 2020 as Filing Number 20-7772039118. The balance of the
loan on the Petition Date is approximately $500,000.
2. The second secured creditor is U.S. Small Business
Administration, secured by a UCC-1 Financing Statement filed on
December 6, 2021 as Filing Number U210107885327. The collateral for
the loan is all assets and proceeds therefrom. The balance of the
loan on the Petition Date is approximately $2.066 million.
3. The third secured creditor is Banker's Healthcare Group,
secured by a UCC-1 Financing Statement filed on July 21, 2022 as
Filing Number U220212234829. The collateral for the loan is all
assets and proceeds therefrom. The balance of the loan on the
Petition Date is approximately $99,955.
4. The fourth secured creditor is Itria Ventures LLC, secured
by a UCC-1 Financing Statement filed on November 23, 2022 as Filing
Number U220246326936. The collateral for the loan is all assets and
proceeds therefrom. The balance of the loan on the Petition Date is
approximately $400,000.
5. The fifth secured creditor is Seamless Capital Group, LLC,
secured by a UCC-1 Financing Statement filed on February 21, 2023
as Filing Number U230012279933. The collateral for the loan is all
assets and proceeds therefrom. The balance of the loan on the
Petition Date is approximately $392,088.
6. The sixth secured creditor is Everest Business Funding
secured by a UCC-1 Financing Statement filed on March 15, 2023 as
Filing Number U230017915727. The collateral for the loan is all
assets and proceeds therefrom. The balance of the loan on the
Petition Date is approximately $350,000.
A copy of the Court's order and the Debtor's budget is available at
https://bit.ly/3LNlpv1 from PacerMonitor.com.
The Debtor projects $410,000 in gross profit and $386,113 in total
operating expenses.
About Transit Physical Therapy PC
Transit Physical Therapy PC offers personal rehabilitation services
including physical therapy, occupational therapy, and speech and
language pathology.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 23-11057) on March 20,
2023. In the petition signed by Mitree Michael Piromgraipakd, its
president, the Debtor disclosed $2,700,328 in assets and $4,147,237
in liabilities.
Judge Scott H. Yun oversees the case.
Todd Turoci, Esq., at the Turoci Firm, represents the Debtor as
legal counsel.
TRIMED HEALTHCARE: Voluntary Chapter 11 Case Summary
----------------------------------------------------
Debtor: TriMED Healthcare LLC
d/b/a Trimed Staffing Solutions
d/b/a Trimed Staffing Services
Neshaminy Interplex
Suite 307
Feasterville Trevose, PA 19053
Business Description: TriMED provides an array of home care
services for those who have disabilities or
simply require a companion. Its services
include personal care, respite care,
friendly reassurance, and intermittent chore
assistance.
Chapter 11 Petition Date: March 24, 2023
Court: United States Bankruptcy Court
Eastern District of Pennsylvania
Case No.: 23-10847
Judge: Hon. Patricia M. Mayer
Debtor's Counsel: Frank S. Marinas, Esq.
MASCHMEYER MARINAS P.C.
629A Swedesford Road
Swedesford Corporate Center
Malvern, PA 19355
Tel: (610) 296-3325
Email: Fmarinas@msn.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Beverley George-Jordan 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/2VCIUII/TriMED_Healthcare_LLC__paebke-23-10847__0001.0.pdf?mcid=tGE4TAMA
TRIPLE D EXPRESS: Case Summary & Six Unsecured Creditors
--------------------------------------------------------
Debtor: Triple D Express Inc.
1570 Hecht Court
Bartlett, IL 60103
Chapter 11 Petition Date: March 23, 2023
Court: United States Bankruptcy Court
Northern District of Illinois
Case No.: 23-03896
Judge: Hon. Jacqueline P. Cox
Debtor's Counsel: David Freydin, Esq.
LAW OFFICES OF DAVID FREYDIN
8707 Skokie Blvd
Suite 305
Skokie, IL 60077
Tel: 888-536-6607
Fax: 866-575-3765
Email: david.freydin@freydinlaw.com
Total Assets: $21,000
Total Liabilities: $2,999,900
The petition was signed by Dobrin Dobrikov as president.
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/4SDSCBI/Triple_D_Express_Inc__ilnbke-23-03896__0001.0.pdf?mcid=tGE4TAMA
US VIRGIN ISLANDS: Moody's Withdraws 'Caa3' Issuer Rating
---------------------------------------------------------
Moody's Investors Service has withdrawn the Government of U.S.
Virgin Islands' (USVI) issuer rating. At the time of withdrawal,
USVI's issuer rating was Caa3 and the outlook was stable.
RATINGS RATIONALE
Moody's has withdrawn USVI's issuer rating because debt obligations
for which it served as a reference rating no longer have
outstanding ratings. Most recently, the issuer rating served as a
reference rating for the Virgin Islands Water and Power Authority.
The ratings for the Water and Power Authority were withdrawn on
March 1, 2023 because of insufficient information to support the
maintenance of the ratings.
VERISTAR LLC: Fine-Tunes Plan Documents
---------------------------------------
Veristar, LLC, and its Debtor Affiliates submitted a Second Amended
Joint Plan of Reorganization dated March 21, 2023.
This Plan is the Debtors' comprehensive proposal to continue their
business of providing superior service to clients, efficiently
resolve pending disputes, and honor valid obligations.
Like in the prior iteration of the Plan, each Holder of an Allowed
Class 4 Claim shall be paid its Pro Rata portion of Debtors'
Disposable Income remaining after payment of any Allowed Class 3
Claim. Class 4 Claims shall be paid in quarterly disbursements
during the Commitment Period, with the first such payment due on
the first day of the month that is at least 90 days after the later
of the Effective Date or the date on which the Allowed Class 3
Claim, if any, is fully paid.
The Debtors shall use proceeds from operations to pay all required
payments on the Effective Date and all payments due under the Plan
on an on-going basis. Further, the Plan shall be funded by: (a) any
portion of funds designated on the budget attached to this Plan as
contingency that are not actually expended at the end of the
Commitment Period; (b) an amount equal to 25% of any recovery (net
of collection costs) from the Takata MDL Collection Action, whether
or not any such recovery occurs during or after the Commitment
Period; (c) all recoveries (net of collection costs) from Avoidance
Actions; and (d) $60,000 to be contributed on the Effective Date by
Debtors’ CEO, Richard Avers, notwithstanding any defenses he may
have under section 547 of the Bankruptcy Code.
Under the best-case scenario a forced liquidation would yield an
11% distribution ($447,366 to be distributed Pro Rata to
$4,056,865). In reality, damages that would flow from a forced
liquidation of the Debtors would greatly exceed the liquidation
value of assets, leaving nothing for creditors.
By comparison, the Plan proposes to distribute a minimum total of
$526,122, or approximately 13%, to creditors over the 3-year
Commitment Period, and possibly significantly more as described in
Section 6.1 of the Plan. Excluding disputed claims, the proposed
distribution under the Plan is greater.
Disposable Income shall have the meaning set forth in section
1191(d) of the Bankruptcy Code in the amount indicated on the
budget attached to this Plan, plus any portion of funds designated
on such budget as contingency that are not actually expended at the
end of the Commitment Period, plus 25% of any recovery (net of
collection costs) from the Takata MDL Collection Action, plus 100%
of recoveries (net of collection costs) from Avoidance Actions,
including without limitation a $60,000 voluntary payment by
Debtors' CEO, less an amount equal to all professional fees and
expenses incurred and paid by the Debtors in connection with the
forensic accounting conducted pursuant to the Debtors' Expedited
Application for Order Authorizing the Retention and Employment of
Crosslin, PLLC.
A full-text copy of the Second Amended Joint Plan dated March 21,
2023 is available at https://bit.ly/3K5keWi from PacerMonitor.com
at no charge.
Attorneys for Debtors:
Robert J. Gonzales, Esq.
Nancy B. King, Esq.
EmergeLaw, PLLC
4235 Hillsboro Pike, Suite 350
Nashville, TN 37215
Tel: (615) 815-1535
Email: robert@emerge.law
nancy@emerge.law
About Veristar LLC
Veristar, LLC provides legal services for a range of practice areas
and industries. It offers discovery, specialized legal staffing and
veralocity services.
Veristar and its affiliates filed their voluntary petitions for
relief under Chapter 11, Subchapter V of the Bankruptcy Code
(Bankr. M.D. Tenn. Lead Case No. 23-00413) on Feb. 5, 2023. Michel
Geoffrey Abelow has been appointed as Subchapter V trustee.
In the petition signed by its chief financial officer, Ben Gardner,
Veristar listed $1,477,959 in total assets and $3,806,865 in total
liabilities.
Judge Marian F. Harrison oversees the cases.
The Debtors tapped EmergeLaw, PLLC as bankruptcy counsel and Sims
Funk, PLC as special counsel.
VITAL PHARMACEUTICALS: Ex-CEO Blocked from Using SocMed Accounts
----------------------------------------------------------------
Carolina Bolado of Law360 reports that a Florida bankruptcy judge
on Thursday, March 16, 2023, temporarily blocked the recently
terminated CEO of Bang Energy drink maker Vital Pharmaceuticals
from making any changes to the official Bang Energy CEO social
media accounts while he and the new management team battle over
ownership of the accounts.
Plaintiff Vital Pharmaceuticals, Inc., and its affiliated debtors
filed an adversary proceeding against John "Jack" H. Owoc and Megan
E. ("Meg Liz") Owoc seeking (i) a declaration that the Instagram
and TikTok accounts bearing the handle "@bangenergy.ceo" and the
Twitter account bearing the handle "@BangEnergyCEO", and any other
social media accounts used in the ordinary course of the Debtors'
business operations are property of the Debtors' estates.
The Debtors' intensive marketing strategy employing a strong and
consistent social media presence has contributed to the Company's
becoming a dominant brand on social media, with over 4 million
followers across its various social media accounts. Among the
social media accounts regularly and routinely used by the Debtors
in connection with their social media marketing have been the CEO
Accounts.
On March 9, 2023, the Debtors' boards of directors and managers
terminated Jack Owoc from his role as Chief Executive Officer and
Chief Science Officer and removed him from the Debtors' Board, and
also terminated Meg Liz Owoc from her employment with the Debtors
as Senior Vice President of Marketing. While the Debtors have
since secured access to a majority of the Debtors' social media
accounts, Defendants have refused to voluntarily turn over access
to the CEO Accounts or otherwise respond to the Company's demands
to return control of such social media accounts to the Company.
The Debtors and their advisors continue to investigate whether
Defendants are in possession of, or otherwise have access to, any
other Company Accounts, according to the Complaint.
About Vital Pharmaceuticals
Since 1993, Florida-based Vital Pharmaceuticals, Inc., doing
business as Bang Energy and as VPX Sports, has developed
performance beverages, supplements, and workout products to fuel
high-energy lifestyles. VPX Sports is the maker of Bang energy
drinks, among other consumer products.
Vital Pharmaceuticals, Inc., along with certain of its domestic
subsidiaries and affiliates, filed voluntary petitions for
protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D.
Fla. Lead Case No. 22-17842) on Oct. 10, 2022.
VPX estimated $500 million to $1 billion in assets and liabilities
as of the bankruptcy filing.
The Hon. Scott M. Grossman is the case judge.
The Debtors tapped Latham & Watkins, LLP as general bankruptcy
counsel; Berger Singerman, LLP as local counsel; 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.
VITAL PHARMACEUTICALS: Reaches Deal With Ex-CEO Over Tiktok Use
---------------------------------------------------------------
James Nani of Bloomberg Law reports that former Bang Energy CEO
Jack Owoc has agreed to hand over to a court some social media
channel passwords as he and the energy drink company's bankrupt
parent work out who owns those accounts.
Owoc and his wife, Megan Owoc, said they would not make any new
posts to the TikTok, Instagram or Twitter accounts for 45 days,
according to a stipulation Bang parent Vital Pharmaceuticals Inc.
filed Thursday, March 16, 2023, in a Florida bankruptcy court.
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.
WAHOO FITNESS: Main Street Marks $14.6M Loan at 43% Off
-------------------------------------------------------
Main Street Capital Corporation has marked its $14,625,000 loan
extended to Wahoo Fitness Acquisition L.L.C. to market at
$8,409,000 or 57% of the outstanding amount, as of December 31,
2022, according to a disclosure contained in Main Street's Form
10-K for the fiscal year ended December 31, 2022, filed with the
Securities and Exchange Commission on February 24, 2023.
Main Street is a participant in a Secured Debt to Wahoo. The loan
accrues interest at a rate of 10.64% (SF+5.75%) per annum. The loan
matures on August 12, 2028.
Main Street is a principal investment firm primarily focused on
providing customized debt and equity financing to lower middle
market companies and debt capital to middle market companies.
Wahoo is a fitness training equipment provider.
WESTERN GLOBAL: Moody's Cuts CFR to Caa1, On Review for Downgrade
-----------------------------------------------------------------
Moody's Investors Service has downgraded Western Global Airlines,
Inc.'s corporate family rating to Caa1 from B2 and its senior
unsecured rating to Caa2 from B3 and placed the ratings on review
for further downgrade.
RATINGS RATIONALE
Moody's has downgraded Western Global's ratings to reflect its
deteriorating liquidity position. The company's $47.5 million
revolving credit facility, expiring February 15, 2025, will likely
remain fully utilized even after the company receives a return of
certain deposits associated with its now aborted agreement to
purchase two 777-F aircraft from The Boeing Company (Baa2 stable).
Furthermore, all of Western Global's assets are encumbered,
limiting its ability to raise new funding on favorable terms.
Additionally, declining operating block hours in recent quarters
have contributed to weakness in Western Global's revenues and cash
flow.
Through September 30, 2022, expenditures to conform the four
acquired Boeing 747F for service and elevated fuel expenses,
coupled with slightly declining aircraft utilization, led to
negative free cash flow of $52 million for the year-to-date period.
This included an approximately $13 million deposit relating to the
company's agreement to purchase two Boeing 777-F aircraft for
delivery in 2025. In the second quarter, fuel expenses increased
because the company was unable to transport cargo on its westbound
routes to Asia due to it not meeting minimum requirements for the
number of pilots operating the aircraft.
The ratings also reflect Western Global's modest scale, aged fleet
composition, high customer concentration (top 3 customers were 64%
of total revenue as of September 30, 2022) and negative tangible
equity.
Moody's review of Western Global's ratings will focus on the
company's ability to generate sufficient free cash flow to begin
repaying its revolving credit facility while servicing its other
debt outstanding. In this regard, Moody's will focus on Western
Global's potential to expand revenues and earnings from deploying
two newly conformed Boeing 747F aircraft into revenue service in
2023, as well as its ability to contain operating cost pressures
and capital expenditures. As of September 30, 2022, Western Global
operated 19 aircraft, including 17 MD-11 and two Boeing 747F.
Moody's rates Western Global's senior unsecured notes Caa2, one
notch lower than the company's CFR, reflecting the notes' unsecured
priority relative to lenders of the company's secured term loan A,
as well as their proportion in Western Global's capital structure.
The senior unsecured notes are guaranteed on a senior unsecured
basis by the parent entity and certain restricted subsidiaries of
Western Global.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
An upgrade of the ratings is unlikely given that the ratings are on
review for further downgrade. The ratings could be confirmed if
Western Global demonstrates an ability to generate sufficient
positive free cash flow to gradually repay its revolving facility
from internal sources of funding.
The ratings could be downgraded in the event of an unexpected
customer loss or increased competition that leads to a decline in
market share, ultimately weakening revenue and EBITDA.
Acquisitions, shareholder distributions, an adverse change in the
company's financing structure, a decline in expected unsecured
notes recovery in default or a deterioration in liquidity could
also result in a ratings downgrade.
Headquartered in Estero, Florida, Western Global is an air cargo
platform that provides air cargo services to airlines, logistics
companies as well as U.S. military worldwide. The company had $400
million in aircraft assets and managed a fleet of 21 aircraft (17
McDonnel Douglas MD-11 and four Boeing 747-400) at September 30,
2022.
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Finance
Companies Methodology published in November 2019.
ZEROHOLDING LLC: Unsecureds to Split $129,600 over 16 Quarters
--------------------------------------------------------------
Zeroholding, LLC, submitted a Second Amended Plan of Reorganization
dated March 21, 2023.
Newtek claims a security interest in all Debtor's collateral.
However, Newtek likely does not have a lien on the above referenced
8 vans totaling $108,900 because there is no notation on the
certificates of title that would perfect Newtek's interest in the
vehicles. The Debtor valued these vans based on research on
various trade publications, including AutoTrader.com.
The franchise agreements entered into by Debtor are likely not part
of Newtek's security interest. The Debtor has valued the franchise
agreements at $360,000.00, which represents what Debtor paid for
these agreements. Unfortunately, franchise agreements are
practically worthless to a Chapter 7 trustee. The only possible
purchasers of a franchise agreement are other franchisees of the
franchise, and the Debtor's franchise agreement could give the
franchisor the ability to cancel the franchise agreement and issue
completely new agreements to an entity that would take over the
Debtor's territory. City of Jamestown v. James Cable Partners, L.P.
(In re James Cable Partners), 27 F.3d 534 (11th Cir. 1994). As a
result, the franchise agreement would be valued at $0.00 in a
hypothetical Chapter 7 case. Additionally, the customer lists and
domain name without the franchise agreements would be worthless to
a third party.
The Debtor also has potential preference claims and avoidance
actions against various entities owned and/or controlled by Phillip
Miles. During the one year period immediately preceding the
Petition Date (the "Preference Period"), Debtor paid MEC Capital,
Inc. $90,400.00 more than it received. Debtor also paid Curepoint,
LLC $24,563.29 more than it received over the Preference Period.
Curepoint, LLC recently sold substantially all of its assets in a
court approved sale under 11 U.S.C. sec. 363. Curepoint, LLC has
also asserts an unsecured claim against Debtor for the entire
amount of the Newtek loan.
The Debtor paid Physician Financial Partners, LLC, an entity in
which Phillip Miles is a member, $29,500.00 more than it received
during the Preference Period. Various other entities owned and
controlled by Mr. Miles may be subject to avoidance actions.
Class 1 shall consist of the Secured Claim of Arvest. Arvest timely
filed proof of claim number 6 for the secured amount of $49,305.34.
Debtor shall pay the Secured Class 1 Claim amortized over a
sixty-month period with interest accruing at an annual rate of 7.5%
from the Effective Date with payment commencing on the 10th of the
month following the Effective Date and continuing on the 10th of
every subsequent month in the amount of $987.98 until the Secured
Class 1 Claim is paid in full. Debtor shall continue to make
adequate protection payments in the amount of $1,500.00 per month
pursuant to the terms of the Consent Order until the Effective
Date.
Class 2 shall consist of the second Secured Claim of Arvest. Arvest
timely filed proof of claim number 5 for the secured amount of
$95,367.91. Debtor shall pay the Secured Class 2 Claim amortized
over a sixty-month period with interest accruing at an annual rate
of 7.5% from the Effective Date with payment commencing on the 10th
of the month following the Effective Date and continuing on the
10th of every subsequent month in the amount of $1,910.98 until the
Secured Class 2 Claim is paid in full. Debtor shall continue to
make adequate protection payments in the amount of $1,500.00 per
month pursuant to the terms of the Consent Order until the
Effective Date.
Class 6 consists of the Claim of Premium Merchant Funding 18, LLC
("PMF"). PMF filed a proof of claim no. 11-1 for $390,714.20 (the
"PMF Claim"). PMF failed to file a UCC-1 Financing Statement in
Nevada, the state in which the Debtor is organized. As a result of
PMF's lack of perfection as to the Debtor's assets, the entire PMF
Claim shall be treated as a general unsecured creditor under Class
8 and entitled to vote in that class.
If PMF, through either a contested matter or an adversary
proceeding, is determined to have a first-priority secured claim,
Debtor shall pay the PMF secured claim in full over 120 equal
monthly payments of $3,255.95 beginning on the 30th day after an
order entered by this Court determines that PMF has a first
priority secured claim. Until that determination, PMF shall not be
entitled to distributions under the Plan. Interest shall not accrue
on this claim. Class 6 is impaired and entitled to vote in Class 8
as an unsecured creditor.
Class 8 consists of General Unsecured Claims. If the Plan is
confirmed under 11 U.S.C. § 1191(a), Debtor shall pay the General
Unsecured Creditors $129,600.00 in quarterly installments
commencing on the first day of the full quarter immediately
following the Effective Date and continuing on the 1st day of each
quarter through and including the 16th quarter following the
Effective Date. General Unsecured Creditors will receive 16
disbursements totaling $129,600.00.
If the Plan is confirmed under 11 U.S.C. § 1191(b), Class 8 shall
be treated the same as if the Plan was confirmed under 11 U.S.C. §
1191(a). Notwithstanding anything else in this document to the
contrary, any claim listed shall be reduced by any payment received
by the creditor holding such claim from any third party or other
obligor and Debtor's obligations hereunder shall be reduced
accordingly. The Claims of the Class 8 Creditors are Impaired by
the Plan.
The source of funds for the payments pursuant to the Plan is
Debtor's continued business operations. There are three contingent
claims provided for in the Plan. These claims are comprised of
three merchant cash advance claims in Classes 4 through 6. The
total monetary obligation of these three claims is $6,576.62. If
the Court determines that these claims are to be paid in as fully
secured claims, they shall be paid form the operations of the
Debtor. The funding will come from the salary the Debtor would have
paid Mr. Miles.
A full-text copy of the Second Amended Plan dated March 21, 2023 is
available at https://bit.ly/40x4oJw from PacerMonitor.com at no
charge.
Attorney for Debtor:
Will B. Geer, Esq.
Rountree Leitman Klein & Geer, LLC
Century Plaza I
2987 Clairmont Road, Suite 350
Atlanta, GA 30329
Telephone: (404) 584-1238
Facsimile: (404) 704-0246
Email: wgeer@rlkglaw.com
About Zeroholding LLC
Zeroholding, LLC -- https://www.zeroreznashville.com/ -- is a
carpet cleaning company in Alpharetta, Ga.
Zeroholding filed a petition for relief under Subchapter V of
Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ga. Case No.
22-56502) on Aug. 14, 2022, with between $500,000 and $1 million in
assets and between $1 million and $10 million in liabilities. John
T. Whaley has been appointed as Subchapter V trustee.
Judge Jeffery W. Cavender oversees the case.
Will B. Geer, Esq., at Rountree, Leitman, Klein & Geer, LLC is the
Debtor's legal counsel.
[^] BOND PRICING: For the Week from March 20 to 24, 2023
--------------------------------------------------------
Company Ticker Coupon Bid Price Maturity
------- ------ ------ --------- --------
99 Escrow Issuer Inc NDN 7.500 42.000 1/15/2026
99 Escrow Issuer Inc NDN 7.500 41.927 1/15/2026
99 Escrow Issuer Inc NDN 7.500 41.927 1/15/2026
Acorda Therapeutics Inc ACOR 6.000 60.643 12/1/2024
Air Methods Corp AIRM 8.000 7.466 5/15/2025
Air Methods Corp AIRM 8.000 7.411 5/15/2025
Amyris Inc AMRS 1.500 29.705 11/15/2026
Applied Optoelectronics AAOI 5.000 74.663 3/15/2024
Audacy Capital Corp CBSR 6.500 6.384 5/1/2027
Audacy Capital Corp CBSR 6.750 5.246 3/31/2029
Audacy Capital Corp CBSR 6.750 5.730 3/31/2029
Avaya Inc AVYA 6.125 9.000 9/15/2028
Avaya Inc AVYA 8.000 26.250 12/15/2027
Avaya Inc AVYA 6.125 27.000 9/15/2028
BPZ Resources Inc BPZR 6.500 3.017 3/1/2049
Bed Bath & Beyond Inc BBBY 5.165 7.790 8/1/2044
Bed Bath & Beyond Inc BBBY 4.915 7.942 8/1/2034
Bed Bath & Beyond Inc BBBY 3.749 18.622 8/1/2024
Brixmor LLC BRX 6.900 10.275 2/15/2028
Cardlytics Inc CDLX 1.000 42.000 9/15/2025
Castle US Holding Corp CISN 9.500 37.673 2/15/2028
Castle US Holding Corp CISN 9.500 38.368 2/15/2028
Citizens Financial Group CFG 6.000 85.175 N/A
Clovis Oncology Inc CLVS 1.250 12.750 5/1/2025
Clovis Oncology Inc CLVS 4.500 12.203 8/1/2024
Clovis Oncology Inc CLVS 4.500 11.780 8/1/2024
Diamond Sports Group
LLC / Diamond Sports
Finance Co DSPORT 5.375 8.215 8/15/2026
Diamond Sports Group
LLC / Diamond Sports
Finance Co DSPORT 6.625 0.944 8/15/2027
Diamond Sports Group
LLC / Diamond Sports
Finance Co DSPORT 5.375 2.464 8/15/2026
Diamond Sports Group
LLC / Diamond Sports
Finance Co DSPORT 5.375 11.500 8/15/2026
Diamond Sports Group
LLC / Diamond Sports
Finance Co DSPORT 6.625 1.231 8/15/2027
Diamond Sports Group
LLC / Diamond Sports
Finance Co DSPORT 5.375 2.464 8/15/2026
Diamond Sports Group
LLC / Diamond Sports
Finance Co DSPORT 5.375 6.827 8/15/2026
Diebold Nixdorf Inc DBD 8.500 39.847 4/15/2024
Digital Equipment Corp HPQ 7.750 99.266 4/1/2023
Endo Finance LLC /
Endo Finco Inc ENDP 5.375 5.250 1/15/2023
Endo Finance LLC /
Endo Finco Inc ENDP 5.375 5.000 1/15/2023
Energy Conversion Devices ENER 3.000 0.551 6/15/2013
Envision Healthcare Corp EVHC 8.750 20.317 10/15/2026
Envision Healthcare Corp EVHC 8.750 21.261 10/15/2026
Exela Intermediate LLC /
Exela Finance Inc EXLINT 11.500 15.411 7/15/2026
Exela Intermediate LLC /
Exela Finance Inc EXLINT 10.000 40.000 7/15/2023
Exela Intermediate LLC /
Exela Finance Inc EXLINT 10.000 42.474 7/15/2023
Exela Intermediate LLC /
Exela Finance Inc EXLINT 11.500 15.168 7/15/2026
GNC Holdings Inc GNC 1.500 0.819 8/15/2020
General Electric Co GE 4.200 93.553 N/A
Goodman Networks Inc GOODNT 8.000 1.000 5/31/2022
Gossamer Bio Inc GOSS 5.000 29.550 6/1/2027
Hallmark Financial
Services Inc HALL 6.250 18.266 8/15/2029
Hollows Apartments LLLP HOLAPA 4.625 99.969 12/1/2026
Huntington
Bancshares Inc/OH HBAN 5.700 86.040 N/A
Invacare Corp IVC 5.000 6.000 11/15/2024
Invacare Corp IVC 4.250 6.000 3/15/2026
JPMorgan Chase & Co JPM 2.000 84.489 8/20/2031
Lannett Co Inc LCI 7.750 16.999 4/15/2026
Lannett Co Inc LCI 4.500 16.301 10/1/2026
Lannett Co Inc LCI 7.750 18.406 4/15/2026
Liberty University Inc FLAMES 5.100 111.460 3/1/2042
Lightning eMotors Inc ZEV 7.500 59.500 5/15/2024
MAI Holdings Inc MAIHLD 9.500 35.337 6/1/2023
MAI Holdings Inc MAIHLD 9.500 35.337 6/1/2023
MAI Holdings Inc MAIHLD 9.500 35.337 6/1/2023
MBIA Insurance Corp MBI 16.052 5.250 1/15/2033
MBIA Insurance Corp MBI 16.361 5.340 1/15/2033
Macy's Retail Holdings LLC M 6.900 87.837 1/15/2032
Macy's Retail Holdings LLC M 6.700 86.401 7/15/2034
Macy's Retail Holdings LLC M 6.900 87.837 1/15/2032
Mashantucket Western
Pequot Tribe MASHTU 7.350 42.000 7/1/2026
Maxim Integrated Products MXIM 3.450 100.000 6/15/2027
Morgan Stanley MS 1.800 72.303 8/27/2036
National CineMedia LLC NATCIN 5.750 0.854 8/15/2026
OMX Timber Finance
Investments II LLC OMX 5.540 0.850 1/29/2020
PPL Electric Utilities Corp PPL 5.090 99.746 6/24/2024
PPL Electric Utilities Corp PPL 5.351 99.799 9/28/2023
Party City Holdings Inc PRTY 8.750 18.750 2/15/2026
Party City Holdings Inc PRTY 8.750 20.000 2/15/2026
Party City Holdings Inc PRTY 10.130 18.500 7/15/2025
Party City Holdings Inc PRTY 6.625 0.336 8/1/2026
Party City Holdings Inc PRTY 6.625 0.010 8/1/2026
Party City Holdings Inc PRTY 10.130 12.798 7/15/2025
Photo Holdings Merger Sub SFLY 11.000 40.254 10/1/2027
RR Donnelley & Sons Co RRD 6.000 98.804 4/1/2024
Renco Metals Inc RENCO 11.500 24.875 7/1/2003
Rite Aid Corp RAD 7.700 29.299 2/15/2027
RumbleON Inc RMBL 6.750 35.266 1/1/2025
SVB Financial Group SIVB 4.250 10.875 N/A
SVB Financial Group SIVB 4.700 11.063 N/A
Shift Technologies Inc SFT 4.750 12.125 5/15/2026
Signature Bank/New York NY SBNY 4.125 3.478 11/1/2029
Starwood Property Trust STWD 4.375 99.850 4/1/2023
Talen Energy Supply LLC TLN 10.500 40.125 1/15/2026
Talen Energy Supply LLC TLN 6.500 41.000 6/1/2025
Talen Energy Supply LLC TLN 6.500 43.750 9/15/2024
Talen Energy Supply LLC TLN 10.500 33.000 1/15/2026
Talen Energy Supply LLC TLN 10.500 40.045 1/15/2026
Talen Energy Supply LLC TLN 6.500 43.329 9/15/2024
Team Inc TISI 5.000 89.401 8/1/2023
TerraVia Holdings Inc TVIA 5.000 4.644 10/1/2019
Tricida Inc TCDA 3.500 9.375 5/15/2027
US Renal Care Inc USRENA 10.625 26.759 7/15/2027
US Renal Care Inc USRENA 10.625 28.180 7/15/2027
UpHealth Inc UPH 6.250 31.450 6/15/2026
WeWork Cos Inc WEWORK 7.875 56.215 5/1/2025
WeWork Cos LLC /
WW Co-Obligor Inc WEWORK 5.000 52.634 7/10/2025
WeWork Cos LLC /
WW Co-Obligor Inc WEWORK 5.000 52.835 7/10/2025
Wesco Aircraft Holdings Inc WAIR 8.500 48.250 11/15/2024
Wesco Aircraft Holdings Inc WAIR 13.125 8.500 11/15/2027
Wesco Aircraft Holdings Inc WAIR 8.500 11.875 11/15/2024
Wesco Aircraft Holdings Inc WAIR 9.000 20.410 11/15/2026
Wesco Aircraft Holdings Inc WAIR 13.125 8.167 11/15/2027
Western Global Airlines LLC WGALLC 10.375 49.095 8/15/2025
Western Global Airlines LLC WGALLC 10.375 51.026 8/15/2025
Zions Bancorp NA ZION 5.800 77.250 N/A
*********
Monday's edition of the TCR delivers a list of indicative prices
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