/raid1/www/Hosts/bankrupt/TCR_Public/230420.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Thursday, April 20, 2023, Vol. 27, No. 109
Headlines
942 PENN RR: Chapter 11 Trustee Taps Akerman as Real Estate Counsel
ALL AMERICAN BLACK: Court OKs Cash Collateral Access Thru April 30
AMERICAN TIRE: S&P Alters Outlook to Stable, Affirms 'B-' ICR
BACKUP TECHNOLOGY: Unsecureds Will Get 1% of Claims in 5 Years
BELFOR HOLDINGS: Moody's Rates $200MM Amended Revolver 'B1'
BRAINERD INDUSTRIES: Court OKs Cash Collateral Access Thru May 12
BRAVO MULTINATIONAL: CEO Merle Ferguson Resigns
BRIGHT MOUNTAIN: Bankruptcy Court OKs Sale of Big Village Assets
CATALENT PHARMA: Moody's Puts 'Ba3' CFR Under Review for Downgrade
CBAK ENERGY: Incurs $11.3 Million Net Loss in 2022
CHERRY MAN: Trustee Taps Levene Neale Bender Yoo as Legal Counsel
CNBX PHARMACEUTICALS: Incurs $2.6 Million Net Loss in 2nd Quarter
COBRA PIPELINE: May 23 Plan Confirmation Hearing Set
CODIAK BIOSCIENCES: Hires Young Conaway as Bankruptcy Counsel
CORRIDOR MEDICAL: Seeks Cash Collateral Access
COSMOS HEALTH: Incurs $13.8 Million Net Loss in 2022
CSC HOLDINGS: S&P Rates New $1BB/MM Guaranteed Notes 'B'
DELPHI BEHAVIORAL: Seeks Additional $2MM DIP Loan from Brightwood
DIOCESE OF SANTA ROSA: Committee Taps Stinson LLP as Legal Counsel
EARTH.COM INC: Case Summary & 14 Unsecured Creditors
EARTHSNAP INC: Case Summary & Nine Unsecured Creditors
ECSEM CORP: May 24 Plan & Disclosure Hearing Set
ENDO INTERNATIONAL: Hires Ernst & Young as Tax Services Provider
ENPARK LANDSCAPE: Court OKs Cash Collateral Access Thru May 1
F & B NEGOTIATIONS: Case Summary & 20 Largest Unsecured Creditors
FIVE64 LLC: Voluntary Chapter 11 Case Summary
FUSE GROUP: Sells Another $50K Note to Liu Marketing
GAV REST: Taps Morrison Tenenbaum as Legal Counsel
GENESIS GLOBAL: May 22 Claims Filing Deadline Set
GWG HOLDINGS: Class 4(a) Unsecureds Owed $20M to Get 8.5% to 21.9%
HELLO ALBEMARLE: Involuntary Chapter 11 Case Summary
IEH AUTO PARTS: Taps B. Riley as Inventory Valuation Advisor
INDIE BREWING: Unsecureds Will Get 100% of Claims in Plan
KJMN PROPERTIES: Taps Berkshire Hathaway as Real Estate Broker
KRUGER PRODUCTS: DBRS Assigns BB Issuer Rating, Trend Negative
LEXARIA BIOSCIENCE: Incurs $1.3 Million Net Loss in Second Quarter
LINDBLAD EXPEDITIONS: Moody's Assigns 'B3' CFR, Outlook Stable
LOYALTY VENTURES: Taps Akin Gump Strauss Hauer & Feld as Counsel
LTL MANAGEMENT: J&J Reports Loss After $6.9-Billion Charge
MAD ENGINE: S&P Downgrades ICR to 'CCC+', Outlook Negative
MALLINCKRODT PLC: Wants Out of Manhattan Project Waste Lawsuit
MANHATTAN SCIENTIFICS: Incurs $2.7 Million Net Loss in 2022
MEDICAL CONSTRUCTION: Case Summary & Seven Unsecured Creditors
MONROE GARDENS: May 31 Plan Confirmation Hearing Set
NEWS CORPORATION: Moody's Alters Outlook on 'Ba1' CFR to Stable
NORTH JAX: Amends IRS Secured Claim; Confirmation Hearing May 17
OCEAN POWER: Deploys Next Generation Wave Energy Converter Buoy
OMAHA BEACH 3017: Seeks to Hire Hasbani & Light as Special Counsel
PEKING DUCK: Case Summary & Two Unsecured Creditors
PIEDMONT DRAGWAY: Taps Robert Core, CPA as Accountant
PILL CLUB: Case Summary & 30 Largest Unsecured Creditors
PURDUE PHARMA: Loses Case in Stopping Generic OxyContin
R.P. RUIZ: Amends Unsecured Claims Pay; Plan Hearing June 14
REGIONAL HEALTH: Incurs $6.9 Million Net Loss in 2022
RESHAPE LIFESCIENCES: To File Restated Financial Statements
ROYALE ENERGY: CIC Issued 3.3M Shares via Warrant Exercises
SALISBURY BANCORP: Continues to Defend Parshall Class Suit
SAVESOLAR CORPORATION: Taps CohnReznick as Investment Banker
SENECAL CONSTRUCTION: Taps Robert Core, CPA as Accountant
SIERRA ENTERPRISES: S&P Affirms 'CCC+' ICR, Outlook Negative
SIGYN THERAPEUTICS: Appoints New Chief Scientific Officer
SKILLZ INC: Files Amended Certificate of Incorporation
SKINNY & CO: Seeks to Hire Fultz Maddox Dickens as Legal Counsel
SONOMA PHARMACEUTICALS: CFO Quits; Interim Replacement Named
SPI ENERGY: Incurs $33.7 Million Net Loss in 2022
STONERIDGE INC: S&P Cuts ICR to 'B' on Negative Capital Structure
SUSTAINABLE SAN DIEGO: Taps Totaro & Shanahan as Legal Counsel
TEAL PROPERTIES: June 5 Plan Confirmation Hearing Set
TEHUM CARE: Committee Seeks to Hire Stinson LLP as Legal Counsel
TUTOR PERINI: Moody's Cuts CFR to B3 & Alters Outlook to Negative
U.S. STEM CELL: Incurs $2.9 Million Net Loss in 2022
URBAN COMMONS: Amends Plan to Include Residential Board Sec. Claims
VERISTAR LLC: Amends Franklin Data & Nexem-Iconic Secured Claims
VPR BRANDS: Swings to $204K Net Loss in 2022
VYCOR MEDICAL: Incurs $405K Net Loss in 2022
WAMU COMMERCIAL 2007-SL3: Moody's Ups Rating on Cl. H Certs to Ba2
[^] Recent Small-Dollar & Individual Chapter 11 Filings
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942 PENN RR: Chapter 11 Trustee Taps Akerman as Real Estate Counsel
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Barry Mukamal, the Chapter 11 trustee for 942 Penn RR, LLC,
received approval from the U.S. Bankruptcy Court for the Southern
District of Florida to employ Akerman, LLP as special real estate
counsel.
The trustee needs the firm's legal assistance in connection with
the sale and closing of the Debtor's real property located at 942
Pennsylvania, Miami Beach, Fla.
Akerman agreed to limit its compensation to (i) the agent's share
of the title insurance premium in connection with writing the title
insurance policy for the property (which title insurance is paid
for by the buyer); plus (ii) up to $15,000 for the firm's
attorney's fees in excess of the agent's share of the title
insurance premium; plus (iii) reimbursement of actual costs
incurred, to be paid at closing on the sale of the property,
without the need for formal fee application given the limited scope
of employment and cap on fees.
D. Brett Marks, Esq., a partner at Akerman, 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:
D. Brett Marks, Esq.
Akerman, LLP
201 East Las Olas Blvd., Suite 1800
Ft. Lauderdale, FL 33301
Tel: (954) 463-2700
Email: brett.marks@akerman.com
About 942 Penn RR
942 Penn RR, LLC, owns a short-term luxury apartment building
located at 942 Pennsylvania Ave., Miami Beach, Fla.
942 Penn RR filed its voluntary petition for relief under Chapter
11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 22-14038) on
May 23, 2022, with $1,617,630 in total assets and $27,179,541 in
total liabilities. Raziel Ofer, manager, signed the petition.
Judge Robert A. Mark oversees the case.
The Law Office of Mark S. Roher, PA, is the Debtor's legal
counsel.
On June 29, 2022, the court appointed Barry E. Mukamal as the
Debtor's Chapter 11 trustee. Bast Amron, LLP and KapilaMukamal,
LLP serve as the trustee's legal counsel and accountant,
respectively.
ALL AMERICAN BLACK: Court OKs Cash Collateral Access Thru April 30
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The U.S. Bankruptcy Court for the Eastern District of Virginia,
Alexandria Division, authorized All American Black Car Service,
Inc. to use the cash collateral of Swift Financial, on an interim
basis, with a 10% variance, through April 30, 2023.
With the exclusion of a motor vehicles, Swift Financial has a lien
against the Debtor's assets by reason of a UCC-1 Financing
Statement filed with the Clerk of the State Corporation Commission.
As a result, Swift Financial holds a security interest in the
Debtor's cash collateral -- its cash in hand, accounts receivable,
and proceeds -- pursuant to 11 U.S.C. section 363.
The Debtor will use cash collateral to fund operations.
As adequate protection to Swift Financial for the Debtor's use of
the cash collateral, the Debtor will make weekly payments to Swift
Financial beginning on the second business day after entry of the
order and then on the same day of each week thereafter until the
first to occur of: (a) further order of the Court; (b) entry of an
order: (i) confirming a plan of reorganization; (ii) converting the
matter to Chapter 7; or (iii) dismissing the matter.
As adequate protection for the use and/or diminution of the
interests of Swift Financial in the cash collateral, pursuant to 11
U.S.C. section 361, Swift Financial will have replacement liens on
all of the Debtor's post-petition assets and the proceeds thereof,
which replacement liens will be limited solely to any diminution in
value of any interest in the cash collateral from and after the
Petition Date.
These events constitute an "Event of Default":
(a) conversion of the case to a case under Chapter 7 of the Code;
(b) the appointment of a Trustee in the bankruptcy case; or
(c) the dismissal of the bankruptcy case.
A final hearing on the matter is set for April 25, 2023 at 11 a.m.
A copy of the order is available at https://bit.ly/3oeeaSW from
PacerMonitor.com.
About All American Black Car Service, Inc.
All American Black Car Service, Inc. designs, builds, and installs
custom closet packages.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Va. Case No. 23-10468) on March 23,
2023. In the petition signed by Sohail Cheema, president, the
Debtor disclosed up to $500,000 in both assets and liabilities.
Judge Brian F Kenney oversees the case.
John P. Forest, II, Esq., at Law Office of John P. Forest, II,
represents the Debtor as legal counsel.
AMERICAN TIRE: S&P Alters Outlook to Stable, Affirms 'B-' ICR
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S&P Global Ratings revised its outlook on American Tire
Distributors Inc. (ATD) to stable from positive and affirmed its
ratings, including its 'B-' issuer credit rating.
S&P said, "The stable outlook reflects our expectation that,
although the company's financial performance was constrained in
2022, its credit metrics will remain commensurate with the rating.
It also reflects our sufficient assessment of ATD's liquidity over
the next 12 months, given its minimal maturities.
"The revised outlook reflects our expectation that the company's
credit metrics in 2023-2024 will be weaker than we previously
expected after a soft 2022.ATD's operating performance in 2022 was
weaker primarily because of softness in tire replacement demand
(sales down 10.7%, of which 4.7% was due to the divestment of its
Canadian business (National Tire Distributors in September 2022),
coupled with supply chain disruptions and inflationary pressures.
This led to greater-than-expected working capital investment, lower
sales volumes, and higher unit costs, resulting in elevated
inventory and about a $415 million free operating cash flow (FOCF)
deficit. Consequently, debt to EBITDA increased to 8.7x from 5.0x
in 2021 and FOCF to debt weakened to a 19.0% deficit from 3.8% in
2021, which are well below our upside triggers for the rating. For
2023, we expect debt to EBITDA to improve to about the low-7x area
and FOCF to debt to turn positive at about 7% as ATD clears some
elevated inventory.
"The stable outlook on ATD reflects our expectation that the
company will generate positive FOCF and maintain its market share,
a sustainable capital structure, and adequate liquidity over the
next 12 months.
"We could lower our ratings on ATD if its profitability softens due
to, for instance, rising costs, declining prices to customers,
lower-than-expected demand for replacement tires, or the loss of a
major customer. Any of these scenarios would cause FOCF deficits
for a sustained period and significantly reduce liquidity."
Although unlikely over the next year, S&P could raise its ratings
on ATD over the next 12 months if:
-- S&P believes ATD would efficiently execute cost initiatives,
increase market share, and maintain S&P Global Ratings-adjusted
EBITDA margins of over 6% while efficiently managing working
capital; and
-- S&P expects the company to be on a path to reducing its debt to
EBITDA below 6x and sustaining FOCF to debt of 5%-10%.
ESG credit indicators: E-2, S-2, G-3
S&P said, "Governance factors are a moderately negative
consideration in our credit rating analysis of ATD. Our highly
leveraged assessment of the company's financial risk profile
reflects that its corporate decision-making prioritizes the
interests of its controlling owners, in line with our view of most
rated entities owned by private-equity sponsors. Our assessment
also reflects private-equity owners' generally finite holding
periods and focus on maximizing shareholder returns."
BACKUP TECHNOLOGY: Unsecureds Will Get 1% of Claims in 5 Years
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Backup Technology, LLC filed with the U.S. Bankruptcy Court for the
Southern District of Texas a Plan of Reorganization dated April 17,
2023.
The Debtor started operations in December 2009. The Debtor operates
a data backup technology business. Backup had to file bankruptcy
because they were unable to keep up with the software lease
payments.
The Debtor filed this case on January 16, 2023, to seek protection
in order for relief from the software lease payments, if continued,
would be to the detriment of other creditors by crippling business
operations. Debtor proposes to pay allowed unsecured based on the
liquidation analysis and cash available.
Debtor anticipates having enough business and cash available to
fund the plan and pay the creditors pursuant to the proposed plan.
It is anticipated that after confirmation, the Debtor will continue
in business. Based upon the projections, the Debtor believes it can
service the debt to the creditors.
The Debtor will continue operating its business. The Debtor's Plan
will break the existing claims into seven classes of Claimants.
These claimants will receive cash repayments over a period of time
beginning on the Effective Date. While Debtor's Plan proposes to
pay claims not to exceed 5 years, nothing prevents Debtor from
prepaying its claims.
Class 6 consists of Allowed Impaired Unsecured Claims. All allowed
unsecured creditors shall receive a pro rata distribution at zero
percent per annum over the next 5 years beginning not later than
the 15th day of the first full calendar month following 30 days
after the effective date of the plan and continuing every year
thereafter for the additional 4 years remaining on this date.
Debtor may begin on the 15th day of the month after the effective
date of confirmation, to begin disbursements to the Class 6 claims.
Debtor will distribute up to $17,779.07 to the general allowed
unsecured creditor pool over the 5-year term of the plan. The
Debtor's General Allowed Unsecured Claimants will receive 1% of
their allowed claims under this plan. Any creditors listed in the
schedules of Backup Technology, LLC as disputed and did not file a
claim will not receive distributions under this plan. The allowed
unsecured claims total $1,777,853.03.
Class 7 Equity Interest Holders are not impaired under the Plan.
The current owner will receive no payments under the Plan; however,
they will be allowed to retain their ownership in the Debtor. Class
7 Claimants are not impaired under the Plan.
Debtor anticipates the continued operations of the business to fund
the Plan.
A full-text copy of the Plan of Reorganization dated April 17, 2023
is available at https://bit.ly/3MVLHeZ from PacerMonitor.com at no
charge.
About Backup Technology
Houston-based Backup Technology, LLC, provides data processing,
hosting and related services.
Backup Technology sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Texas Case No. 23-30141) on Jan. 16,
2023. In the petition signed by Michael Colesante as managing
member, the Debtor disclosed up to $500,000 in assets and up to $10
million in liabilities.
Judge Marvin Isgur oversees the case.
Robert C. Lane, Esq., at The Lane Law Firm, is the Debtor's legal
counsel.
BELFOR HOLDINGS: Moody's Rates $200MM Amended Revolver 'B1'
-----------------------------------------------------------
Moody's Investors Service assigned a B1 rating to Belfor Holdings,
Inc.'s amended $200 million revolver which extends the expiration
of the facility by two years through 2026. Additionally, Belfor
announced a $300 million add-on to the existing first lien term
loan. The existing B1 rating on that facility is unchanged. Moody's
expects the terms and conditions on the new tranche to be similar
to the existing debt securities. Moody's also said that the B1
corporate family rating and B1-PD probability of default rating are
unchanged. The outlook is stable.
Proceeds from the incremental term loan will be used to repay about
$190 million of revolver borrowings, $50 million in affiliate loans
and add $60 million to the company's available cash balance. This
additional funding is required to meet working capital demands,
following record contract wins associated with two large hurricanes
in late 2022 and the flood damage experienced on the west coast in
the first quarter of 2023. With this funding, Belfor's pro forma
debt-to-EBITDA rises to about 6.8 times at December 31, 2022, which
is high for the B1 CFR. It's Moody's expectation that the increase
in debt is temporary to meet working capital needs and that free
cash flow will be used to repay debt over the next 12 months and
reduce leverage to around 5.5 times. Further improvement is
expected over the subsequent 12 months through higher earnings and
debt repayment.
Assignments:
Issuer: Belfor Holdings, Inc.
Backed Senior Secured First Lien Revolving Credit Facility,
Assigned B1 (LGD3)
RATINGS RATIONALE
Belfor's credit profile reflects the high financial leverage for
the company's business risk despite better than expected revenue
growth to significant weather related damages, exposure to foreign
exchange headwinds (about 40% of revenues are generated outside the
US) and key-man risk. Further, the company relies on revolver
borrowings for working capital needs due to the protracted length
in collecting outstanding receivables from insurers. Earnings can
fluctuate significantly because of the irregularity of large-scale
disaster recovery projects from major weather events, such as
hurricanes, which are higher margin and drive better than average
metrics. Lastly, the company's penchant for acquisitions presents
integration risks and could lead to higher leverage.
Belfor is competitively well positioned in the highly fragmented
property damage restoration industry based on its large scale, good
technical capabilities and broad geographic coverage. This gives
the company operational flexibility to meet surges in demand and
helps it sustain long established customer relationships with large
corporations and property and casualty insurers that provide a
large base of recurring revenue. As a result, the company is able
to benefit from profitable but infrequent hurricane-related work,
which tends nonetheless to drive stronger credit metrics in the
short term.
The stable outlook reflects Moody's expectation of strong demand in
the company's base business, absent any hurricane related revenue.
This should enable Belfor to generate positive free cash flow that
can support debt repayment. Moody's expects the company to maintain
good liquidity over the next year, including ample revolver
availability, to help with seasonal working capital swings and fund
small bolt-on acquisitions.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
A downward rating change would be driven by weaker than expected
free cash flow or diminishing revolver availability. The rating
could also be downgraded if the company does not materially reduce
financial leverage, such that debt to EBITDA is expected to be
sustained above 4.5x, or sees a material decline in EBITA margin
and interest coverage metrics. Debt funded acquisitions or
shareholder distributions that increase leverage or weaken
liquidity could also result in a ratings downgrade.
The rating could be upgraded with improved performance that reflect
steadily better credit metrics, including debt to EBITDA sustained
below 3.5x. An upgrade of the rating would also require with strong
free cash flow and evidence of a commitment to a conservative
financial policy and broader governance.
The principal methodology used in this rating was Environmental
Services and Waste Management Companies published in April 2018.
Belfor Holdings, Inc. through its subsidiaries is a global damage
recovery and restoration provider offering its services to
insurance companies, insurance intermediaries, industrial,
commercial and residential customers. Revenue was $2.1 billion for
the year ended December 31, 2022. The company was acquired via LBO
by funds affiliated with American Securities, a private equity
firm, in April 2019.
BRAINERD INDUSTRIES: Court OKs Cash Collateral Access Thru May 12
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The U.S. Bankruptcy Court for the Southern District of Ohio,
Western Division, authorized Brainered Industries Incorporated to
continue using cash collateral on an interim basis through May 12,
2023.
As previously reported by the Troubled Company Reporter, the Debtor
requires the use of cash collateral to pay trade vendors, wages and
benefits, suppliers, overhead and other expenses necessary for the
continued operation of the Debtor's business and the management and
preservation of the Debtor's assets and properties.
Prior to the commencement of the Case, the Debtor's largest
creditor and first priority secured creditor was the Huntington
National Bank. The Debtor's obligations to Huntington as Senior
Secured Lender are evidenced by:
(1) a United States Small Business Administration Promissory
Note in the amount of $5 million executed by the Debtor, Brainerd
Realty LLC, and Gregor W. Fritz (the owner of the Debtor);
(2) Commercial Security Agreement dated August 29, 2014, which
provided as collateral an extensive listing of assets, including
the debtor's inventory, equipment, accounts, etc. and the proceeds
of same, which was perfected by a UCC Financing Statement filed
with the Ohio Secretary of State as OH00179394926 and
OH00179395049;
(3) A mortgage executed and delivered by Brainerd Realty LLC
as to the real property located at 680 Precision Court, Miamisburg,
Ohio 45342 filed of record with the Montgomery County Ohio Recorder
as File No. 2014-00051368 on September 26, 2014;
(4) A promissory note dated March 15, 2021 in the original
amount of $478,000; and
(5) Commercial Guaranty agreements executed and delivered by
Brainerd Realty LLC and Gregory W. Fritz.
The total indebtedness owed to the Senior Secured Lender under the
Senior Secured Loan Documents, as of the Petition Date is $5.526
million.
The final hearing on the matter is set for May 12, 2023 at 9:30
a.m.
A copy of the court's order and the Debtor's budget is available at
https://bit.ly/3A1P10r from PacerMonitor.com.
The Debtor projects total expenses, on a weekly basis, as follows:
$38,845 for the week ending April 24, 2023;
$38,845 for the week ending May 1, 2023;
$38,845 for the week ending May 8, 2023;
$38,845 for the week ending May 15, 2023; and
$38,845 for the week ending May 22, 2023.
About Brainerd Industries Inc.
Brainerd Industries Inc. is a fabricated metal product manufacturer
in Miamisburg, Ohio.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Ohio Case No. 23-30432) on March 22,
2023. In the petition signed by Gregory W. Fritz, president, the
Debtor disclosed up to $10 million in both assets and liabilities.
Judge Guy R. Humphrey oversees the case.
Patricia J. Friesinger, Esq., at Coolidge Wall Co., LPA, represents
the Debtor as legal counsel.
BRAVO MULTINATIONAL: CEO Merle Ferguson Resigns
-----------------------------------------------
The Board of Directors of Bravo Multinational, Inc. accepted the
resignation of Mr. Merle Ferguson as the Company's Chairman of the
Board, chief executive officer and president, as disclosed in a
Form 8-K filed with the Securities and Exchange Commission.
The resignation will become effective ten days after the mailing by
the Company of its Schedule 14f Information Statement notifying the
shareholders of a change in control of the Company's board of
directors.
Mr. Ferguson's resignation letter makes it clear that the
resignation is not due to any disputes or disagreements with the
Company or its advisors.
About Bravo Multinational
Based in Ontario, Canada, Bravo Multinational Incorporated --
http://www.bravomultinational.com-- is currently engaged in the
business of leasing and selling gaming equipment. The Company,
however, ceased operations in Nicaragua in 2017 due to political
and economic instabilities. The Company is planning to operate its
business in the US and other more stable democracies in Latin
America.
Bravo Multinational reported a net loss of $528,058 for the year
ended Dec. 31, 2022, compared to a net loss of $420,126 for the
year ended Dec. 31, 2021. As of Dec. 31, 2022, the Company had $73
in total assets, $1.77 million in total liabilities, and a total
stockholders' deficit of $1.77 million.
Lakewood, CO-based BF Borgers CPA PC, the Company's auditor since
2017, issued a "going concern" qualification in its report dated
March 6, 2023, citing that the Company has suffered recurring
losses from operations and has a significant accumulated deficit.
BRIGHT MOUNTAIN: Bankruptcy Court OKs Sale of Big Village Assets
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In accordance with certain procedures adopted by the United States
Bankruptcy Court for the District of Delaware in In re Big Village
Holding LLC, et al., jointly-administered under case No. 23-10174,
Bright Mountain Media, Inc., submitted a bid for the acquisition of
certain assets of Big Village Insights, Inc., a Delaware
corporation f/k/a Engine International, Inc., Big Village Agency
LLC, a Delaware limited liability company f/k/a Engine USA LLC, Big
Village Group Inc., a Delaware corporation f/k/a Engine Group Inc.,
Deep Focus, Inc., a New York corporation, EMX Digital Inc., a
Delaware corporation, Balihoo, Inc., a Delaware corporation, and
Big Village Media LLC, a Delaware limited liability company f/k/a
Engine Media LLC in the Bankruptcy Case related to the Sellers'
Agency Business and Insights Business. The Bid contemplated the
payment of a deposit, a cash payment at Closing and the assumption
of certain of Sellers' liabilities, all as set forth in a
definitive asset purchase agreement among the Sellers and the
Company.
In accordance with the Bidding Procedures, on April 4, 2023, the
Sellers conducted an auction among qualified bidders, including the
Company. At the Auction, following certain negotiated
modifications to the APA, the Company was declared the winning
bidder with a bid of $19,874,000 plus the Assumed Liabilities, in
accordance with the modified APA. The Company delivered the
deposit of $1,987,400 to the escrow agent effective as of April 3,
2023.
On April 10, 2023, the Bankruptcy Court entered an order approving
the sale of all of the Sellers' right, title and interest in, to,
and under the assets, rights, and properties of every nature
(whether now existing or hereafter acquired and whether or not
reflected on the books or financial records of Sellers) primarily
used in or related to the operation or conduct of the Business to
the Company in accordance with the APA, as modified at the Auction.
The APA was executed on April 10, 2023 and upon the Sale Order
became a binding agreement among the parties.
Each of the Company and the Sellers has provided representations,
warranties and covenants in the APA, including the following
covenants relating to the conduct of the Business prior to the
Closing: (A) maintaining the properties and assets included in the
Acquired Assets in the same condition as they were on the date of
the APA, subject to reasonable wear and tear, if applicable; (B)
using commercially reasonable efforts to preserve intact the
Business and the Business's goodwill, to keep available the
services of the Sellers' employees and agents, and to maintain
relations with the customers and other business relations of the
Business; (C) not (i) amending, modifying, waiving, terminating,
rejecting or seeking to reject any Assigned Contract (as defined in
the APA) (or any right thereunder), (ii) taking or omitting to take
any action that would result (with notice or lapse of time or both)
in a breach under any Assigned Contract, or (iii) entering into any
new Contract (as defined in the APA) in respect of the Acquired
Assets; and (D) unless otherwise approved or ordered by the
Bankruptcy Court in the Bankruptcy Cases, initiating, waiving,
releasing, assigning, settling or compromising (i) any Action (as
defined in the APA) in respect of the Business, the Acquired Assets
or the Assumed Liabilities, (ii) any Action that could give rise to
any liabilities or impose any binding obligation whether contingent
or realized) on the Sellers, or (iii) waive or release any claims
or rights included in or related to the Acquired Assets.
The closing of the sale is subject to certain conditions, including
(a) that no governmental authority has enacted, issued, promulgated
or entered any order that is in effect and has the effect of making
the transactions contemplated by the APA illegal, or otherwise
restraining or prohibiting consummation of such transactions that
are not otherwise satisfied, resolved or preempted by the Sale
Order, (b) the Bankruptcy Court shall have entered the Sale Order,
and the Sale Order shall not have been stayed, vacated, reversed or
modified without the consent of the Company as of the closing date,
and (c) performance in all material respects by each party of its
covenants and agreements.
The APA contains certain termination rights for both the Company
and the Sellers. Big Village Insights, Inc., as the Sellers
representative, and the Company has the right to terminate the
Agreement (a) by mutual written consent, (b) in the event that
there is any law that makes consummation of the transactions
contemplated by the APA illegal or otherwise prohibited or any
governmental authority issues an order restraining or enjoining the
transactions contemplated by the APA and such government order has
become final and non-appealable, or (c) at any time following April
20, 2023 if the Closing shall not have occurred on or before the
End Date.
Commitment Letter
On April 4, 2023, the Company entered into a commitment letter with
Centre Lane Solutions Partners, LP. The Commitment Letter provides
that, subject to the conditions set forth therein, the CLP Lenders
commit to provide financing in the form of a senior secured credit
facility with a super priority first lien term loan in an aggregate
principal amount of up to $26,316,000 ("SPTL Facility") for the
acquisition of the Acquired Assets of the Sellers, including the
payment of the deposit, cash payment at Closing, the payment of
cure claims related to assumed and assigned executory contracts,
the payment of related transaction fees and expenses, including
funding the original issue discount, and the funding of cash to the
Company's balance sheet. In connection with the SPTL Facility, the
Company and its subsidiaries are required to grant to the CLP
Lenders a perfected, first priority security interest in all assets
and capital stock held in or by the Company and its subsidiaries.
Additionally, the CLP Lenders' commitment to provide the SPTL
Facility is subject to certain conditions, including: (a) the
preparation, execution and delivery of mutually acceptable loan
documentation, and satisfaction of conditions precedent set forth
in the final loan documentation; (b) no material adverse change in
the condition of the Business (financial or otherwise), operations,
properties or prospects of the Company or the Sellers; (c) the
consummation of the sale of the Acquired Assets concurrently with
the Closing of the SPTL Facility; (d) the issuance by the Company
to CLP Lenders of an equity interest in the Company equal to ten
percent of the fully diluted ownership in the Company as of the
date of the Closing of the SPTL Facility; (e) payment in full of
all fees, expenses and other amounts payable under the Commitment
Letter and under the final loan documents; and (f) the Company's
overall compliance with the terms of the Commitment Letter.
About Bright Mountain
Based in Boca Raton, Fla., Bright Mountain Media, Inc. --
www.brightmountainmedia.com -- is engaged in operating a
proprietary, end-to-end digital media and advertising services
platform designed to connect brand advertisers with
demographically-targeted consumers -- both large audiences and more
granular segments -- across digital, social and connected
television publishing formats. The Company defines "end-to-end" as
its process for taking ad buying from beginning to end, delivering
a complete functional solution, usually without requiring any
involvement from a third party.
Bright Mountain reported a net loss of $8.13 million for the year
ended Dec. 31, 2022, compared to a net loss of $12 million for the
year ended Dec. 31, 2021. For the three months ended Dec. 31,
2022, the Company reported a net loss of $2.32 million. As of Dec.
31, 2022, the Company had $29.20 million in total assets, $43.27
million in total liabilities, and a total stockholders' deficit of
$14.07 million.
East Brunswick, New Jersey-based WithumSmith+Brown, PC, the
Company's auditor since 2021, issued a "going concern"
qualification in its report dated March 28, 2023, citing that the
Company has suffered recurring losses from operations and has a
net
capital deficiency that raise substantial doubt about its ability
to continue as a going concern.
CATALENT PHARMA: Moody's Puts 'Ba3' CFR Under Review for Downgrade
------------------------------------------------------------------
Moody's Investors Service placed the ratings of Catalent Pharma
Solutions, Inc. review for downgrade following the company's profit
warning and sudden management changes. The ratings placed under
review for downgrade include the Ba3 Corporate Family Rating,
Ba3-PD Probability of Default Rating, the Ba1 senior secured bank
credit facility rating, and the B1 rating on the senior unsecured
notes. The outlook is revised to Rating Under Review from Stable.
Concurrently, Moody's downgraded the Speculative Grade Liquidity
Rating (SGL) to SGL-2 from SGL1.
On April 14, 2023, Catalent announced that productivity issues and
higher-than-expected costs experienced at three of its facilities,
including two of its largest manufacturing facilities, will
materially and adversely impact the company's financial results for
the third fiscal quarter and its outlook for the remainder of the
2023 fiscal year. Concurrently, Catalent announced that its Chief
Financial Officer is stepping down immediately and the company's
President, Division Head for Clinical Development & Supply, will
assume his responsibilities in the interim.
The review for downgrade reflects Moody's expectation that higher
operating costs will lead to an increase in leverage, which stood
at 4.1x for the LTM period ended December 31, 2022. The review will
focus on the magnitude of the profit deterioration and measures
taken by management to address productivity issues which are
currently affecting a number of the company's facilities. The
revision of the liquidity assessment to SGL-2 reflects Moody's
expectation of a negative impact on the company's liquidity profile
in light of the productivity issues.
On Review for Downgrade:
Issuer: Catalent Pharma Solutions, Inc.
Corporate Family Rating, Placed on Review for Downgrade,
currently Ba3
Probability of Default Rating, Placed on Review for Downgrade,
currently Ba3-PD
Senior Secured Revolving Credit Facility, Placed on Review
for Downgrade, currently Ba1 (LGD2)
Senior Secured Term Loan, Placed on Review for Downgrade,
currently Ba1 (LGD2)
Senior Unsecured Notes, Placed on Review for Downgrade,
currently B1 (LGD5)
Downgrades:
Issuer: Catalent Pharma Solutions, Inc.
Speculative Grade Liquidity Rating, Downgraded to SGL-2
from SGL-1
Outlook Actions:
Issuer: Catalent Pharma Solutions, Inc.
Outlook, Changed To Rating Under Review From Stable
Social and governance risk considerations are key drivers of the
rating action reflecting the company's exposure to responsible
production as well as governance risk exposure to management's
credibility and track record which have led to the profit warning.
RATINGS RATIONALE
Excluding the ratings review, Catalent's Ba3 CFR is supported by
the company's good size and scale, breadth of services and strong
reputation as one of the largest contract development management
organizations (CDMOs) globally. The company also maintains a
diversified customer base and commands a large library of patents,
know-how, and other intellectual property that raise barriers to
entry and enhance margins.
Catalent's involvement in programs to develop treatments and
vaccines for COVID-19 has resulted in strong earnings growth and
offered an opportunity to reinvest these proceeds in capacity
expansion and acquisitions. This in turn will support future
earnings growth. The credit profile also reflects the risks
inherent in the contract manufacturing industry, which is highly
competitive, and has high reliance on the pharmaceutical industry.
The Speculative Grade Liquidity Rating of SGL-2 reflects Moody's
expectation that Catalent's liquidity will be good over the next 12
to 18 months. Catalent's liquidity will be supported by a cash
balance of $442 million as of December 31, 2022, and access to $500
million from the $1.1 billion revolving credit facility that
expires in 2027 and had $600 million drawn as of December 31,
2022.
ESG factors are material to Catalent's credit profile. Catalent's
ESG credit impact score is moderately negative (CIS-3) reflecting
highly negative exposure to social risk considerations (S-4),
namely responsible production. Catalent has credit risk exposure
around product quality and supply chain reliability. The score also
reflects Catalent's moderately negative exposure to governance risk
factors owing to the company's willingness to increase debt to
pursue acquisitions.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
An upgrade is unlikely while the ratings are being reviewed with
negative implications. However, in the longer term, Moody's could
consider an upgrade if Catalent reduces financial leverage such
that its debt to EBITDA is sustained below 3.5 times. Successful
integration of acquisitions and organic growth that results in
increased scale and improved business line diversity, would also
support an upgrade.
The ratings could be downgraded if Moody's expects Catalent's
financial leverage to be sustained above 4.5 times. The ratings
could also be downgraded if Catalent's earnings deteriorate, or if
the current elevated capex strategy fails to generate very strong
organic revenue growth. The ratings could be downgraded if the
company adopts a more aggressive acquisition or shareholder
strategy.
Catalent Pharma Solutions, Inc. is a leading contract development
and manufacturing organization (CDMO) company and a global provider
of advanced delivery technologies and development and manufacturing
solutions for drugs; protein, cell, and gene therapy biologics; and
consumer health products. These include the company's formulation,
development and manufacturing of softgels and other products for
the prescription drug and consumer health industries. The company
reported revenue of approximately $4.8 billion for the LTM period
ended December 31, 2022.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
CBAK ENERGY: Incurs $11.3 Million Net Loss in 2022
--------------------------------------------------
CBAK Energy Technology, Inc. has filed with the Securities and
Exchange Commission its Annual Report on Form 10-K disclosing a net
loss of $11.33 million on $248.73 million of net revenues for the
year ended Dec. 31, 2022, compared to net income of $61.56 million
on $52.67 million of net revenues for the year ended Dec. 31,
2021.
As of Dec. 31, 2022, the Company had $244.03 million in total
assets, $119.65 million in total liabilities, and $124.38 million
in total equity.
Hong Kong, China-based Centurion ZD CPA & Co., the Company's
auditor since 2016, issued a "going concern" qualification in its
report dated April 14, 2023, citing that the Company has
accumulated deficit from recurring net losses and significant
short-term debt obligations maturing in less than one year as of
Dec. 31, 2022. All these factors raise substantial doubt about its
ability to continue as a going concern.
A full-text copy of the Form 10-K is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/0001117171/000121390023029933/f10k2022_cbakenergy.htm
About CBAK Energy
Liaoning Province, People's Republic of China-based CBAK Energy --
www.cbak.com.cn -- is a manufacturer of new energy high power
lithium batteries that are mainly used in light electric vehicles,
electric vehicles, electric tools, energy storage including but not
limited to uninterruptible power supply (UPS) application, and
other high-power applications. Its primary product offering
consists of new energy high power lithium batteries, but it is also
seeking to expand into the production and sale of light electric
vehicles.
CHERRY MAN: Trustee Taps Levene Neale Bender Yoo as Legal Counsel
-----------------------------------------------------------------
Hamid Rafatjoo, the Chapter 11 trustee for Cherry Man Industries,
Inc., seeks approval from the U.S. Bankruptcy Court for the Central
District of California to modify the terms of employment of Levene
Neale Bender Yoo & Golubchik, LLP as his legal counsel.
During the pendency of this case, the Trustee, based on this
Court's order, sold assets of the estate to an entity currently
known as Cherry Man Industries, LLC. A dispute exists with respect
to the sale transaction and an adversary proceeding is currently
pending, which was commenced by the Trustee.
The claims against the Buyer will be prosecuted by Levene's based
on the following compensation formula:
a. Reduced Hourly Rates. Levene's billing rates shall be a
flat amount of $400 per hour. Such amounts shall be paid from
estate funds.
b. Expenses. Levene's expenses, including, without limitation,
transcript costs, court reporter costs and expert costs. Such
amounts shall be paid from estate funds.
c. Contingency. In addition to the foregoing, Levene's shall
receive a contingency of 25 percent of all collections received
before at least 30 days before the commencement of a trial or prior
to a hearing on a motion for summary judgment or 30 percent of all
collections thereafter. Such amounts shall be paid from actual
recoveries obtained from the Buyer Action.
The avoidance claims will be prosecuted by Levene based on the
following compensation formula:
a. 20 percent of all collections received before any lawsuit
is filed;
b. 33 percent of all collections received after a lawsuit is
filed but settled or resolved at least two weeks before the
commencement of a trial, prior to a hearing on a motion for summary
judgment, or prior to entry of a default judgment;
c. 40 percent of all collections received less than two weeks
before the commencement of a trial, after a hearing on a motion for
summary judgment, or after entry of a default or other judgment;
d. In addition to the foregoing contingency fees, Levene will
be reimbursed for all expenses incurred in connection with the
pursuit of avoidance actions promptly upon incurring such expenses;
and
e. Levene will be entitled to be paid all outstanding fees
directly from actual recoveries obtained from the pursuit of
avoidance actions.
David Golubchik, Esq., a partner at Levene, disclosed in a court
filing that his firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
David B. Golubchik, Esq.
Krikor J. Meshefejian, Esq.
Jonathan D. Gottlieb, Esq.
Levene Neale Bender Yoo & Golubchik, LLP
2818 La Cienega Avenue
Los Angeles, CA 90034
Tel: (310) 229-1234
Fax: (310) 229-1244
Email: dbg@lnbyg.com
kjm@lnbyg.com
jdg@lnbyg.com
About Cherry Man Industries
Cherry Man Industries, Inc. was started in 2002 by Frank Lin. It is
one of the largest nationwide importers and distributors of office
furniture case goods. It is headquartered in El Segundo, Calif.,
with five distribution centers across the U.S.
Cherry Man Industries sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. C.D. Calif. Case No. 22-11471) on March 17,
2022, listing $100 million to $500 million in assets and $10
million to $50 million in liabilities. Frank Lin, president of
Cherry Man Industries, signed the petition.
Judge Neil W. Bason oversees the case.
The Law Offices of Michael Jay Berger serves as the Debtor's legal
counsel.
The U.S. Trustee for Region 15 appointed an official committee of
unsecured creditors on March 31, 2022. Kelley Drye & Warren, LLP
and Province, LLC serve as the committee's legal counsel and
financial advisor, respectively.
Hamid R. Rafatjoo, the Chapter 11 trustee appointed in the Debtor's
case, is represented by Levene Neale Bender Yoo & Golubchik, LLP.
CNBX PHARMACEUTICALS: Incurs $2.6 Million Net Loss in 2nd Quarter
-----------------------------------------------------------------
CNBX Pharmaceuticals Inc. has filed with the Securities and
Exchange Commission its Quarterly Report on Form 10-Q disclosing a
net loss of $2.62 million for the three months ended Feb. 28, 2023,
compared to a net loss of $1.24 million for the three months ended
Feb. 28, 2022.
For the six months ended Feb. 28, 2023, the Company reported a net
loss of $2.98 million compared to a net loss of $2.56 million for
the same period in 2022.
As of Feb. 28, 2023, the Company had $462,052 in total assets,
$2.47 million in total current liabilities, and a total
stockholders' deficit of $2.01 million.
CNBX stated, "We will have to raise funds to pay for our expenses.
We may have to borrow money from shareholders, issue equity or
enter into a strategic arrangement with a third party. There can
be no assurance that additional capital will be available to us.
We currently have no arrangements or understandings with any person
to obtain funds through bank loans, lines of credit or any other
sources. Since we have no such arrangements or plans currently in
effect, our inability to raise funds for our operations will have a
severe negative impact on our ability to remain a viable company.
"Our independent auditors included an explanatory paragraph in
their report on the accompanying unaudited financial statements
regarding concerns about our ability to continue as a going
concern. Our financial statements contain additional note
disclosures describing the circumstances that lead to this
disclosure by our independent auditors.
"Our ability to continue as a going concern is dependent upon our
ability to generate profitable operations in the future and/or to
obtain the necessary financing to meet our obligations and repay
our liabilities arising from normal business operations when they
become due. The outcome of these matters cannot be predicted with
any certainty at this time and raise substantial doubt that we will
be able 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/1343009/000168316823002379/cnbx_i10q-022823.htm
About CNBX Pharmaceuticals
CNBX Pharmaceuticals Inc. is a clinical-stage company specializing
in the discovery, development and commercialization of novel
cannabinoid-based products and innovative technologies for the
treatment of cancer.
CNBX reported a net loss of $3.72 million for the year ended Aug.
31, 2022, compared to a net loss of $3.19 million for the year
ended Aug. 31, 2021. As of Nov. 30, 2022, the Company had $609,509
in total assets, $2.58 million in total current liabilities, and a
total stockholders' deficit of $1.97 million.
Tel - Aviv, Israel-based Weinstein International. C.P.A., the
Company's auditor since 2019, issued a "going concern"
qualification in its report dated Nov. 29, 2022, citing that the
Company has incurred significant losses and needs to raise
additional funds to meet its obligations and sustain its
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
COBRA PIPELINE: May 23 Plan Confirmation Hearing Set
----------------------------------------------------
On March 9, 2023, Cobra Pipeline Co., Ltd., filed with the U.S.
Bankruptcy Court for the Northern District of Ohio a Chapter 11
Disclosure Statement describing Plan of Liquidation.
On April 17, 2023, Judge Arthur I. Harris approved the Disclosure
Statement and ordered that:
* May 16, 2023, is fixed as the last day for filing written
acceptances or rejections of the plan.
* May 23, 2023, at 11:00 a.m. is fixed for the hearing on
confirmation of the plan.
* May 16, 2023, is fixed as the last day for filing and
serving pursuant to Fed. R. Bankr. P. 3020(b)(1) written objections
to confirmation of the plan.
A copy of the order dated April 17, 2023 is available at
https://bit.ly/3MWb4x7 from PacerMonitor.com at no charge.
Counsel for the Debtor:
Thomas W. Coffey
Coffey Law LLC
2430 Tremont Avenue
Cleveland, OH 44113
Tel: (216) 870-8866
E-mail: tcoffey@tcoffeylaw.com
About Cobra Pipeline
Cobra Pipeline Co., Ltd., an Ohio-based intrastate natural gas
pipeline company, filed a voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ohio Case No.
19-15961) on Sept. 25, 2019. In the petition signed by Jessica
Carothers, general manager, the Debtor disclosed up to $50,000 in
assets and up to $50 million in liabilities.
Judge Arthur I. Harris oversees the case.
Thomas W. Coffey, Esq., at Coffey Law LLC serves as the Debtor's
counsel.
CODIAK BIOSCIENCES: Hires Young Conaway as Bankruptcy Counsel
-------------------------------------------------------------
Codiak BioSciences, Inc. seeks approval from the U.S. Bankruptcy
Court for the District of Delaware to hire Young Conaway Stargatt &
Taylor, LLP as its legal counsel.
The firm's services include:
a. providing legal advice and services with respect to the
Debtor's powers and duties in the continued operation of their
business and management of their property, and providing
substantive and strategic advice on how to accomplish the Debtors'
goals in connection with the prosecution of their Chapter 11
cases;
b. pursuing the sale of the Debtor's assets and approval of bid
procedures related thereto;
c. preparing legal papers;
d. appearing in court; and
e. other legal services that may be necessary and proper in
these proceedings.
The firm will be paid at these rates:
Michael R. Nestor, Partner $1,240 per hour
Joseph M. Barry, Partner $1,070 per hour
Ryan M. Bartley $890 per hour
Elizabeth S. Justison $720 per hour
Andrew A. Mark $505 per hour
Emily C.S. Jones $425 per hour
Cheyenne Goodman $400 per hour
Troy Bollman (paralegal) $355 per hour
In addition, the firm will receive reimbursement for out-of-pocket
expenses incurred.
The firm received a retainer of $250,000.
Ryan Bartley, Esq., a partner at Young Conaway, 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.
In accordance with Appendix B-Guidelines for reviewing fee
applications filed by attorneys in larger Chapter 11 cases, Mr.
Bartley disclosed that:
-- Young Conaway 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.
-- Young Conaway was retained by the Debtors pursuant to an
engagement agreement dated March 20, 2022. The billing rates and
material terms of the prepetition engagement are the same as the
rates and terms described in this Application.
-- The Debtors will be approving a prospective budget and
staffing plan for Young Conaway's engagement for the post-petition
period as appropriate. In accordance with the U.S. Trustee
Guidelines, the budget may be amended as necessary to reflect
changed or unanticipated developments.
The firm can be reached through:
Ryan M. Bartley, Esq.
Young Conaway Stargatt & Taylor, LLP
1000 N. King Street
Wilmington, DE 19801
Tel: (302) 571-5007
Email: rbartley@ycst.com
About Codiak BioSciences
Codiak BioSciences, Inc. is a clinical-stage biopharmaceutical
company focused on pioneering the development of exosome-based
therapeutics, a new class of medicines with the potential to
transform the treatment of a wide spectrum of diseases with high
unmet medical need.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 23-10350) on March 27,
2023. In the petition signed by Paul Huygens, as chief
restructuring officer, the Debtor disclosed $106,167,706 in assets
and $85,374,781 in liabilities.
Judge Mary F. Walrath oversees the case.
The Debtor tapped Ryan M. Bartley, Esq., at Young Conaway Stargatt
& Taylor, LLP as legal counsel, Stretto, Inc. as claims, noticing
agent and administrative advisor, and Province, LLC as
restructuring advisor.
CORRIDOR MEDICAL: Seeks Cash Collateral Access
----------------------------------------------
Corridor Medical Services, Inc. asks the U.S. Bankruptcy Court for
the Western District of Texas, Austin Division, to use cash
collateral and provide adequate protection.
The Debtor requires the use of cash collateral to continue to
operate in the ordinary course of business and pay normal operating
expenses related to providing radiological services so that it can
continue to provide these services to its customers.
The COVID-19 pandemic has led to challenges in the marketplace that
have negatively impacted the income of Corridor. These challenges
pushed Corridor to explore other avenues of revenue. With an
expected influx of approximately $600,000 from the Employee
Retention Credit in 2022, Corridor began the process of launching a
Wellness and Age Management practice.
In May 2022, Corridor received $150,000 from the ERC program and
secured the necessary office spaces to house this medical clinic.
Finally in October 2022, Corridor received notification from the
ERC program that 60 more days were needed to process the payment.
No further communication or payment was received in 2022.
Unfortunately, the operating costs of Corridor with the added
expense related to the new revenue line without additional revenue
or the ERC funds has led to the current debts becoming
unmanageable. To date no ERC funds have been received in 2023. The
present bankruptcy was filed to reject three burdensome leases and
to restructure the Debtor's unsecured debts under Subchapter V of
Chapter 11.
The three secured creditors are Horizon Bank, Sterling Bank, and
U.S. Small Business Administration.
The Debtor proposes to provide adequate protection to the parties
with an interest in cash collateral in the following manner:
a. The Debtor requests permission to continue making the
regular monthly payments owed to Horizon Bank. Sterling Bank does
not appear to have a lien on cash collateral.
b. The Debtor will provide all creditors with an interest in
cash collateral with a replacement lien upon assets obtained
post-petition to the same extent, priority and validity as their
pre-petition liens.
c. The Debtor will maintain insurance upon its assets.
A copy of the court's order and the Debtor's budget is available at
https://bit.ly/418bd4W from PacerMonitor.com.
The Debtor projects total expenses, on a monthly basis, as
follows:
$103,517 for April 2023;
$103,517 for May 2023;
$103,517 for June 2023; and
$103,517 for July 2023.
About Corridor Medical Services, Inc.
Corridor Medical Services, Inc., formed on March 8, 1996, provided
x-ray, laboratory, ultrasound/doppler echocardiograms,
electrocardiogram (EKG) and polymerase chain reaction services to
patients that are restricted in travel. Corridor has currently
restricted its services to mainly portable x-ray and EKG services.
Its website is located at https://www.corridormobile.com./, with a
mailing address of PO Box 643, San Marcos, TX 78667.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Tex. Case No. 23-10251) on April 14,
2023. In the petition signed by Stephen R. Nelson, president, the
Debtor disclosed up to $10 million in both assets and liabilities.
Stephen W. Sather, Esq., at Barron & Newburger, P.C., represents
the Debtor as legal counsel.
COSMOS HEALTH: Incurs $13.8 Million Net Loss in 2022
----------------------------------------------------
Cosmos Health Inc. has filed with the Securities and Exchange
Commission its Annual Report on Form 10-K disclosing a net loss of
$13.83 million on $50.35 million of revenue for the year ended Dec.
31, 2022, compared to a net loss of $7.96 million on $56.24 million
of revenue for the year ended Dec. 31, 2021.
As of Dec. 31, 2022, the Company had $68.04 million in total
assets, $28.38 million in total liabilities, $372,414 in mezzanine
equity, and $39.28 million in total stockholders' equity.
Cosmos said, "The Company's revenues are not able to sustain its
operations, and concerns exist regarding the Company's ability to
meet its obligations as they become due. The Company is subject to
a number of risks to those of smaller commercial companies,
including dependence on key individuals and products, the
difficulties inherent in the development of a commercial market,
the need to obtain additional capital, competition from larger
companies, and other pharmaceutical and health care companies.
"Management evaluated the above conditions which raise substantial
doubt about the Company's ability to continue as a going concern to
determine if it can meet its obligations for the subsequent twelve
months from the date of this filing. Management considered its
ability to access future capital, curtail expenses if needed,
expand product lines, and acquire new products. Based on the
management's evaluations, it has devised a plan in order to meet
its obligations for the next twelve months.
"Management's plans include expansion of brand name products to the
market, expanding the current product portfolio, and evaluating
acquisition targets to expand distribution. Furthermore, the
Company intends to vertically integrate the supply chain
distribution network. Finally, the Company plans to access the
capital markets further in order to raise additional funds through
equity offerings.
"It is management's conclusion that these plans above,
collectively, alleviate the conditions that raised substantial
doubt about the Company's ability to continue as a going concern.
Therefore, it is determined that no substantial doubt exists about
the Company's ability to continue as a going concern for a period
of twelve months from the date of this filing."
A full-text copy of the Form 10-K is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1474167/000147793223002443/cosm_10k.htm
About Cosmos Holdings
Cosmos Holdings Inc., together with its subsidiaries, is an
international pharmaceutical company with a proprietary line of
nutraceuticals and distributor of branded and generic
pharmaceuticals, nutraceuticals, over-the-counter (OTC)
medications
and medical devices through an extensive, established EU and UK
distribution network.
This concludes the Troubled Company Reporter's coverage of Cosmos
Health until facts and circumstances, if any, emerge that
demonstrate financial or operational strain or difficulty at a
level sufficient to warrant renewed coverage.
CSC HOLDINGS: S&P Rates New $1BB/MM Guaranteed Notes 'B'
--------------------------------------------------------
S&P Global Ratings assigned a 'B' issue-level rating to Altice USA
Inc.'s proposed $1 billion million guaranteed notes due 2028 issued
via CSC Holdings LLC. The recovery rating is '3' indicating
expectations of meaningful (50%-70%; 65% rounded estimate)
recovery. The company plans to use proceeds for general corporate
purposes, which may include refinancing existing debt and for
capital expenditures. In the interim, S&P expects the company to
temporarily repay borrowings under the 2027 revolver, which totaled
about $1.6 billion as of Dec. 31, 2022, given that the next debt
maturity (totaling $750 million) is not until June 2024.
S&P said, "There is no impact to our existing ratings, because this
transaction is neutral for leverage. We continue to expect debt to
EBITDA to remain in the high-6x area through 2024. The negative
rating outlook continues to reflect the possibility we could lower
the rating within the next year if debt to EBITDA is sustained
above 7x, which could be caused by an inability to increase
profitable broadband revenue or a take-private transaction.
"The notes will carry higher interest expense than the revolver,
resulting in an estimated increase of roughly $50 million in annual
interest expense. Still, we project that Altice USA will generate
about $200 million in free operating cash flow (FOCF) per year in
2023 and 2024 before gradually approaching $1 billion per year by
2026 as peak capital spending winds down. Furthermore, we view this
as prudent liquidity management as this provides the company with
about $1.8 billion of pro forma revolver availability (as of Dec.
31, 2022), which could be used to repay 2024 maturities of $750
million.
"We view this transaction favorably from a liquidity perspective,
as this alleviates pressure until at least 2025 and likely until
2027. We estimate the company will have about $1.8 billion of
liquidity to begin 2025, consisting primarily of revolver
availability. However, we estimate the revolver will likely still
be drawn by about $800 million by the end of 2024. The revolver
currently matures on April 17, 2025, unless the $1.5 billion term
loan B (which matures July 2025) has been fully repaid or the
maturity has been extended beyond July 2027. Based on our base-case
assumptions, Altice would have enough revolver capacity to prepay
the term loan B before April 17, 2025, which would extend the
maturity of the revolver to July 2027." Therefore, S&P does not
project that Altice will require significant access to capital
until 2027 based on the following estimates for sources and uses of
liquidity in the coming years:
-- Cash: $305 million (as of Dec. 31, 2022)
-- Pro forma revolver availability: $1.769 billion
-- 2023 FOCF: $215 million
-- 2024 June Maturity: ($750 million)
-- 2024 FOCF: $250 million
-- 2024 ending revolver availability: $1.489 billion
-- 2024 ending cash: $300 million
-- 2025 FOCF: $700 million
-- 2025 July Term Loan B Maturity: ($1.535 billion)
-- 2025 ending revolver availability: $650 million
-- 2025 ending cash: $300 million
-- 2026 FOCF: $970 million
-- 2026 Maturity: ($1.200 billion)
DELPHI BEHAVIORAL: Seeks Additional $2MM DIP Loan from Brightwood
-----------------------------------------------------------------
Delphi Behavioral Health Group, LLC and its debtor-affiliates ask
the U.S. Bankruptcy Court for the Southern District of Florida,
Fort Lauderdale Division, for authority to use cash collateral an
obtain postpetition financing.
Delphi Intermediate Healthco, LLC seeks to increase its existing
DIP Facility from certain pre-Petition Date lenders, directly or
through one or more affiliates, and Brightwood Loan Services, LLC,
as administrative agent, by $2 million, from its existing maximum
principal amount of $11 million up to the aggregate principal
amount of $13 million, upon entry of the Supplemental Final DIP
Order, pursuant to and subject to the terms of the First DIP Credit
Agreement Amendment and the Supplemental Final DIP Order.
The DIP Lenders have agreed to increase the DIP Facility by $2
million upon entry of the Supplemental Final DIP Order, pursuant to
the terms of the Final DIP Order, the First DIP Credit Agreement
Amendment and the Approved Budget.
A copy of the motion is available at https://bit.ly/43F5sNZ from
PacerMonitor.com.
About Delphi Behavioral Health Group, LLC
Delphi Behavioral Health Group, LLC and several affiliated entities
sought protection under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. S.D. Fla. Lead Case No. 23-10945) on February 6, 2023. In
the petition signed by Edward A. Phillips, interim chief executive
officer, the Debtors disclosed up to $10 million in assets and up
to $10 million in liabilities.
Delphi Behavioral Health Group provides a range of inpatient and
outpatient behavioral healthcare services in the substance use
disorder, addiction and mental health treatment space.
Headquartered in Fort Lauderdale, Florida, Delphi and its
affiliates operated 12 clinical facilities and two recovery
residences prior to the Petition Date, throughout California,
Florida, Maryland, Massachusetts and New Jersey. The levels of
care provided at the clinical facilities range from inpatient and
residential to outpatient (partial hospitalization), intensive
outpatient programming and outpatient programming.
Judge Peter D. Russin oversees the case.
The Debtors tapped Berger Singerman LLP as legal counsel, Getzler
Henrich and Associates as restructuring services provider, and Epiq
Corporate Restructuring, LLC as notice and claims agent.
Brightwood Loan Services, LLC, the Administrative Agent for the
Prepetition Lenders and the Administrative Agent for the DIP
Lenders, is represented by Roger Schwartz, Esq., Pete Montori,
Esq., and Robert Nussbaum, Esq. at King & Spalding LLP.
DIOCESE OF SANTA ROSA: Committee Taps Stinson LLP as Legal Counsel
------------------------------------------------------------------
The official committee of unsecured creditors of The Roman Catholic
Diocese of Santa Rosa received approval from the U.S. Bankruptcy
Court for the Northern District of California to hire Stinson LLP
as its counsel.
The firm's services include:
(a) consulting with the Debtor and the Office of the United
States Trustee regarding administration of the case;
(b) advising the Committee with respect to its rights, powers,
and duties as they relate to the case;
(c) investigating the acts, conduct, assets, liabilities, and
financial condition of the Debtor;
(d) assisting the Committee in analyzing the Debtor's
pre-petition and post- petition relationships with its creditors,
equity interest holders, employees, and other parties in interest;
(e) assisting and negotiating on the Committee's behalf in
matters relating to the claims of the Debtor's other creditors;
(f) assisting the Committee in preparing pleadings and
applications as may be necessary to further the Committee's
interests and objectives;
(g) researching, analyzing, investigating, filing and
prosecuting litigation on behalf of the Committee in connection
with issues including but not limited to avoidance actions or
fraudulent conveyances;
(h) representing the Committee at hearings and other
proceedings;
(i) reviewing and analyzing applications, orders, statements
of operations, and schedules filed with the Court and advising the
Committee regarding all such materials;
(j) aiding and enhancing the Committee's participation in
formulating a plan;
(k) assisting the Committee in advising unsecured creditors of
the Committee's decisions, including the collection and filing of
acceptances and rejections to any proposed plan;
(l) negotiating and mediating issues relating to the value and
payment of claims held by the Committee's constituency; and
(m) performing such other legal services as may be required
and are deemed to be in the interests of the Committee.
The firm will be paid at these rates:
Partners $390 - $780 per hour
Associates $295 - 440 per hour
Paralegals $250 - $300 per hour
Stinson will cap its blended hourly rate for all billing
professionals at $550 per hour. In addition, Stinson will cap its
highest hourly rate at $650 per hour.
As disclosed in the court filings, Stinson qualifies as a
"disinterested person" as defined in Bankruptcy Code Sec. 101(14).
The firm can be reached through:
Robert T. Kugler, Esq.
Edwin H. Caldie, Esq.
Kacie Phillips Tawfic, Esq.
STINSON LLP
50 S 6th Street, Suite 2600
Minneapolis, MN 55402
Tel: (612) 335- 1500
Email: Robert.Kugler@stinson.com
Ed.Caldie@stinson.com
Kacie.Tawfic@stinson.com
About Santa Rosa Roman Catholic Diocese
The Roman Catholic Diocese of Santa Rosa in California is a
diocese, or ecclesiastical territory, of the Roman Catholic Church
in the northern California region of the United States, named in
honor of St. Rose of Lima.
Abuse victims filed hundreds lawsuits after the state of California
paused for three years its statute of limitation on claims for
child sexual abuse. The pause ended on Dec. 31, 2022.
Facing more than 200 new legal claims over childhood sexual abuse,
the Roman Catholic Bishop of Santa Rosa, also known as the Diocese
of Santa Rosa, filed a Chapter 11 petition (Bankr. N.D. Calif. Case
No. 23-10113) on March 13, 2023. The Debtor estimated $10 million
to $50 million in both assets and liabilities.
The Hon. Charles Novack is the case judge.
The Debtor tapped Felderstein Fitzgerald Willoughby Pascuzzi &
Rios, LLP as bankruptcy counsel; Shapiro Galvin Shapiro & Moran as
special corporate and litigation counsel; Weinstein & Numbers, LLP
as insurance counsel; and GlassRatner Advisory & Capital Group,
LLC, doing business as B. Riley Advisory Services, as financial
advisor. Donlin, Recano & Company, Inc. is the claims agent.
The U.S. Trustee for Region 17 appointed an official committee to
represent unsecured creditors in the Debtor's Chapter 11 case.
Stinson, LLP is the committee's legal counsel.
EARTH.COM INC: Case Summary & 14 Unsecured Creditors
----------------------------------------------------
Debtor: Earth.com, Inc.
473 West Colorado Ave., #3740
Telluride, CO 81435-3740
Chapter 11 Petition Date: April 19, 2023
Court: United States Bankruptcy Court
District of Colorado
Case No.: 23-11621
Judge: Hon. Elizabeth E. Brown
Debtor's Counsel: Jeffrey S. Brinen, Esq.
KUTNER BRINEN DICKEY RILEY, P.C.
1660 Lincoln Street, Suite 1720
Denver, CO 80264
Tel: 303-832-2400
Email: jsb@kutnerlaw.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Eric Ralls as CEO.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/FAFQATY/Earthcom_Inc__cobke-23-11621__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's 14 Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Inovation HQ, Inc. Rent to Own $5,000,000
P.O. Box 9990 Domain Name
Lower Factory Road Sale Agreement
St. Johns, Antigua
2. ContentIQ Marketing Marketing $240,152
1 WTC Expenses
77th Floor, Suite A
New York, NY 10007
3. Amazon Web Services Web Hosting $115,240
410 Terry Avenue
Seattle, WA 98109
4. DEJ Partners, LLC Attorney Fee $63,055
331 Vineland Ave. Award
City of Industry, CA 92887
5. Linton, Cameron $21,826
607 Bryn Mawr Street
Orlando, FL 32804
6. Castleson, Linda $18,673
7. Sexton, Chrissy $17,500
1020 Kidwell Ridge Road
Morristown, TN 37814
8. Barrett-Thomas CPA $16,050
2203 Oak Alley
Tyler, TX 75703
9. Podoll & Podoll, P.C. Attorney Fees $15,000
5619 DTC Parkway,
STE 1100
Englewood, CO 80111
10. Marfeel Solutions $12,000
Av Josep Tarradellas
20-30, 6th Floor
08029, Barcelona -
Spain
11. Dr. Andrei Ionescu $9,850
12. Maggiora, Jordan $6,950
2601 76th Avenue SE
Apt. 556
Mercer Island, WA 98040
13. DEJ Partners, LLC Litigation Claims $0
331 Vineland Ave.
City of Industry, CA
92887
14. Plantsnap, Inc. Litigation Claims $0
1040 S. Gaylord St.,
STE 67
Denver, CO 80209
EARTHSNAP INC: Case Summary & Nine Unsecured Creditors
------------------------------------------------------
Debtor: EarthSnap, Inc.
473 West Colorado Ave., #3740
Telluride, CO 81435-3740
Chapter 11 Petition Date: April 19, 2023
Court: United States Bankruptcy Court
District of Colorado
Case No.: 23-11622
Judge: Hon. Thomas B. Mcnamara
Debtor's Counsel: Jeffrey S. Brinen, Esq.
KUTNER BRINEN DICKEY RILEY, P.C.
1660 Lincoln Street, Suite 1720
Denver, CO 80264
Tel: 303-832-2400
Email: jsb@kutnerlaw.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Eric Ralls as CEO.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
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/FUBQG5I/EarthSnap_Inc__cobke-23-11622__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's Nine Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Provectus App Development $174,379
125 University Avenue Expenses
Suite 295
Palo Alto, CA 94301
2. AdRizer Marketing $141,132
1570 Boulevard of the Arts Expenses
Sarasota, FL 34236
3. Amazon Web Services Web Hosting $115,240
410 Terry Avenue
Seattle, WA 98109
4. DEJ Partners, LLC Attorney Fee $63,055
331 Vineland Ave. Award
City of Industry, CA 92887
5. Phiture Marketing $38,000
Kottbusser Damm 79 Expenses
10967 Berlin, Germany
6. Adjust Software $30,000
640 Second St. Expenses
San Francisco, CA
94107
7. Podoll & Podoll, P.C. Attorney Fees $15,000
5619 DTC Parkway,
STE 1100
Englewood, CO 80111
8. DEJ Partners, LLC Litigation Claims $0
331 Vineland Ave.
City of Industry, CA 92887
9. Plantsnap, Inc. Litigation Claims $0
1040 S. Gaylord St.,
STE 67
Denver, CO 80209
ECSEM CORP: May 24 Plan & Disclosure Hearing Set
------------------------------------------------
On April 14, 2023, ECSEM Corporation filed with the U.S. Bankruptcy
Court for the District of Puerto Rico a Disclosure Statement and
Small Business Plan.
On April 17, 2023, Judge Mildred Caban Flores conditionally
approved the Disclosure Statement and ordered that:
* May 24, 2023, at 9:00 AM, at the U.S. Bankruptcy Court, Jose
V. Toledo U.S. Post Office and Courthouse Building, 300 Recinto Sur
Street, Courtroom 1, Second Floor, San Juan, Puerto Rico is the
hearing for the consideration of the final approval of the
Disclosure Statement and the confirmation of the Plan.
* That acceptances or rejections of the Plan may be filed in
writing by the holders of all claims on/or before 14 days prior to
the date of the hearing on confirmation of the Plan.
* That any objection to the final approval of the Disclosure
Statement and/or the confirmation of the Plan shall be filed on/or
before 14 days prior to the date of the hearing on confirmation of
the Plan.
* That the debtor shall file with the Court a statement
setting forth compliance with each requirement in Section 1129 of
the Bankruptcy Code, the list of acceptances and rejections and the
computation of the same, within 7 working days before the hearing
on confirmation.
A copy of the order dated April 17, 2023 is available at
https://bit.ly/3LbTe85 from PacerMonitor.com at no charge.
Attorney for the Debtor:
Mary Ann Gandia-Fabian
GANDIA-FABIAN LAW OFFICE
P.O. Box 270251
San Juan, PR 00927
Tel: (787) 390-7111
Fax: (787) 729-2203
E-mail: gandialaw@qmail.com
About Ecsem Corporation
Ecsem Corporation is a "for profit" corporation organized under the
laws of the Commonwealth of Puerto Rico, and is dedicated to the
rental of commercial properties. It owns two real properties
located in TOa Baja and Cidra, Puerto Rico. The property located
at Toa Baja has 5 commercial spaces and the property in Cidra is a
vacant lot composed of 5.28 "cuerdas".
Ecsem Corporation filed a Chapter 11 bankruptcy petition (Bankr.
D.P.R. Case No. 22-03006) on Oct. 19, 2022, with up to $500,000 in
both assets and liabilities. Judge Mildred Caban Flores oversees
the case.
The Debtor tapped Mary Ann Gandia-Fabian, Esq., at Gandia-Fabian
Law Office as legal counsel and Jimenez Vazquez & Associates, PSC
as accountant.
ENDO INTERNATIONAL: Hires Ernst & Young as Tax Services Provider
----------------------------------------------------------------
Endo International plc and its affiliates seek approval from the
U.S. Bankruptcy Court for the Southern District of New York to
employ Ernst & Young LLP as their tax, valuation and consulting
services provider.
EY LLP will provide the following services:
i. 2022 Sarbanes-Oxley Support Services
Service 1: EY LLP will assist with testing the operating
effectiveness of the Company's financial controls and Information
Technology General Controls (ITGCs) for management's assessment of
the effectiveness of Internal Controls over Financial Reporting
(ICFR) in accordance with requirements of the Sarbanes-Oxley Act of
2002.
Service 2: EY LLP will assist with the definition of the
Company's newly defined Internal Controls over Financial Reporting
(ICFR) related to its Chapter 11 bankruptcy filing including the
creation of a risk and control matrix (RACM) for the newly created
controls.
ii. Valuation Services
EY LLP will assist client as set forth below in connection
with client's required impairment testing in accordance with
Accounting Standards Codification 350 (ASC 350). The scope of the
valuation analysis will include the following:
-- Interviews with management concerning the nature and
operations of the business of the following reporting units;
-- U.S. Branded -- Specialty & Established
Pharmaceuticals; and
-- U.S. Branded -- Sterile Injectables.
-- Consideration of any business plans, future performance
estimates or budgets for the Reporting Units;
-- Consideration of applicable economic, industry, and
competitive environments, including relevant historical and future
estimated trends;
-- Application of the Income, Market and/or Cost
Approaches to value using, where appropriate, financial data that
is based on a market participant perspective;
-- Valuation analysis of the Reporting Units giving
consideration to appropriate approaches to value; and
-- Preparation of exhibits summarizing EY LLP's analysis,
the assumptions on which its analysis was based, and EY LLP's
recommendations of fair value.
iii. Transfer Pricing Benchmarking
EY LLP will provide a final deliverable in form of a
benchmarking memorandum containing five searches for comparable
companies for the most recent three-year period. Specifically, the
following searches:
1. Comparable North American Administrative Service
Providers;
2. Comparable North American Sales and Marketing Service
Providers;
3. Comparable North American Contract R&D Service
Providers;
4. Comparable North American Manufacturers; and
5. Comparable North American Distributors.
The firm will be compensated as follows:
a. 2022 Sarbanes-Oxley Support Services: Fees will be fixed
at $222,000.
b. Valuation Services: Fees will be fixed for an amount
between $45,000 and $55,000.
c. Transfer Pricing Benchmarking: Fees will be fixed at
$55,000.
As disclosed in the court filings, EY LLP does not hold any
interest adverse to the Debtors or the Debtors' estates, and is a
"disinterested person" within the meaning of section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Stephen M. Cea
Ernst & Young LLP
401 9th Ave
New York, NY 10001
Phone: +1 212-773-3000
Email: stephen.cea@ey.com
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 August 16, 2022, Endo International and certain of its
subsidiaries initiated voluntary prearranged Chapter 11 proceedings
(Bankr. S.D.N.Y. Lead Case No. 22-22549). The cases are pending
before Judge James L. Garrity, Jr. The Debtors have put up a Web
site dedicated to its restructuring: http://www.endotomorrow.com/
The Debtors tapped Skadden, Arps, Slate, Meagher & Flom, LLP as
legal counsel; PJT Partners, LP as investment banker; and Alvarez &
Marsal North America, LLC as financial advisor. Kroll Restructuring
Administration, LLC is the claims agent and administrative
advisor.
Roger Frankel, the legal representative for future claimants in
these Chapter 11 cases, tapped Frankel Wyron LLP and Young Conaway
Stargatt & Taylor, LLP as legal counsels, and Ducera Partners, LLC
as investment banker.
The U.S. Trustee for Region 2 appointed an official committee of
unsecured creditors on Sept. 2, 2022. The committee tapped Kramer
Levin Naftalis & Frankel as legal counsel; Lazard Freres & Co. LLC
as investment banker; and Dundon Advisers, LLC and Berkeley
Research Group, LLC as financial advisors.
Meanwhile, the official committee representing the Debtors' opioid
claimants tapped Cooley, LLP as bankruptcy counsel; Akin Gump
Strauss Hauer & Feld, LLP as special counsel; Province, LLC as
financial advisor; and Jefferies, LLC as investment banker.
David M. Klauder, Esq., the court-appointed fee examiner, is
represented by Bielli & Klauder, LLC.
ENPARK LANDSCAPE: Court OKs Cash Collateral Access Thru May 1
-------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Nevada authorized
Enpark Landscape LLC to use cash collateral on an interim basis in
accordance with the budget, with a 15% variance, pending a final
hearing set for May 1, 2023 at 1:30 p.m.
As adequate protection, the U.S. Small Business Administration, as
secured creditor, will receive:
(a) pursuant to section 11 U.S.C. section 364(c)(1), a
superpriority claim under section 11 U.S.C. section 507(b) of the
Bankruptcy Code against the Debtor and its estate;
(b) an adequate protection payment in the amount of $709 per
month; and
(c) pursuant to 11 U.S.C. section 361(2), valid and perfected
replacement security interests in and liens upon the Debtor's
assets and property, and proceeds thereof, but in all events, only
to the extent of: (i) any post-petition decrease in value of its
properly perfected security interests resulting from the use of
cash collateral, and (ii) to the extent of its pre-petition
properly perfected security interest in and to any of the Debtor's
property.
No provision of adequate protection or other relief is made in the
Order as to AKF Inc., d/b/a FundKite.
A copy of the court's order and the Debtor's budget is available at
https://bit.ly/3GLKUJE from PacerMonitor.com.
The Debtor projects total expenses, on a monthly basis, as
follows:
$272,402 for April 2023;
$282,218 for May 2023;
$291,539 for June 2023; and
$303,868 for July 2023.
About Enpark Landscape LLC
Enpark Landscape LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Nev. Case No. 23-11145) on March 27,
2023.
In the petition signed by Aurelien Castronovo, member, the Debtor
disclosed up to $500,000 in assets and up to $1 million in
liabilities.
Judge August B. Landis oversees the case.
Matthew C. Zirzow, Esq., at Larson & Zarzow, LLC, represents the
Debtor as legal counsel.
F & B NEGOTIATIONS: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: F & B Negotiations, LLC
8429 Lorraine Road, #436
Lakewood Ranch, FL 34202
Chapter 11 Petition Date: April 19, 2023
Court: United States Bankruptcy Court
Middle District of Florida
Case No.: 23-01532
Debtor's Counsel: Benjamin G. Martin, Esq.
LAW OFFICES OF BENJAMIN MARTIN
3131 S. Tamiami Trail, Suite 101
Sarasota, FL 34239-5101
Tel: (941) 951-6166
Fax: (941) 706-2411
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by David Fernandez as managing member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/EJFQVVI/F__B_Negotiations_LLC__flmbke-23-01532__0001.0.pdf?mcid=tGE4TAMA
FIVE64 LLC: Voluntary Chapter 11 Case Summary
---------------------------------------------
Two affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
Five64, LLC 23-30767
10 N Caddo St PMB 137
Cleburne, TX 76031-5540
64 IP Holdings, LLC 23-30769
10 N Caddo St, PMB 137
Cleburne, TX 76031
Business Description: Five64 is a developer and provider of
interstate and state vehicle registration
solutions headquartered in Texas, United
States.
Chapter 11 Petition Date: April 19, 2023
Court: United States Bankruptcy Court
Central District of California
Judge: Hon. Sandra R. Klein
Debtors' Counsel: Thomas D. Berghman, Esq.
MUNSCH HARDT KOPF & HARR, P.C.
500 N. Akard Street, Suite 3800
Dallas, TX 75201-6659
Tel: 214-855-7500
Email: tberghman@munsch.com
Five64, LLC's
Estimated Assets: $1 million to $10 million
Five64, LLC's
Estimated Liabilities: $1 million to $10 million
64 IP Holdings'
Estimated Assets: $1 million to $10 million
64 IP Holdings'
Estimated Liabilities: $100,000 to $500,000
The petitions were signed by Hoke Smith and Pamela Smith as chief
executive officer and member, respectively.
The Debtors failed to include in the petitions the lists of their
20 largest unsecured creditors.
Full-text copies of the petitions are available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/W5YNVSA/Five64_LLC__txnbke-23-30767__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/X2ASKTI/64_IP_Holdings_LLC__txnbke-23-30769__0001.0.pdf?mcid=tGE4TAMA
FUSE GROUP: Sells Another $50K Note to Liu Marketing
----------------------------------------------------
Fuse Group Holding Inc. entered into another convertible promissory
note purchase agreement with Liu Marketing (M) Sdn. Bhd., a company
organized under the laws of Malaysia, on April 10, 2023.
Pursuant to the Second Agreement, the Company sold a Convertible
Promissory Note to the Purchaser with a principal amount of
$50,000. The Second Note bears interest at the rate of 3% per
annum, which are payable on April 10 of 2024 and 2025. The Second
Note will mature on the date that is twenty-four months from the
date that the purchase price of the Second Note is paid to the
Company. Any outstanding principal and interest on the Second Note
may be converted to the shares of common stock of the Company at
the holder's option at a conversion price of $0.45 per share at any
time until the total outstanding balance of the Second Note is
paid. The Second Note was sold to the Purchaser pursuant to an
exemption from registration under Regulation S, promulgated under
the Securities Act of 1933, as amended.
Fuse Group entered into a Convertible Promissory Note Purchase
Agreement on Feb. 24, 2023, with Liu Marketing. Pursuant to the
First Agreement, the Company sold a Convertible Promissory Note to
the Purchaser with a principal amount of $50,000. The First Note
bears interest at the rate of 3% per annum, which are payable on
February 24 of 2024 and 2025. The First Note will mature on the
date that is twenty-four months from the date that the purchase
price of the First Note is paid to the Company. Any outstanding
principal and interest on the First Note may be converted to the
shares of common stock of the Company at the holder's option at a
conversion price of $0.45 per share at any time until the total
outstanding balance of the First Note is paid. The First Note was
sold to the Purchaser pursuant to an exemption from registration
under Regulation S, promulgated under the Securities Act of 1933,
as amended.
About Fuse Group
Headquartered in Arcadia, CA, Fuse Group Holding Inc. currently
explores opportunities in mining. On Dec. 6, 2016, the Company
incorporated Fuse Processing, Inc. in the State of California.
Processing seeks business opportunities in mining and is currently
investigating potential mining targets in Asia and North America.
Fuse Group is the sole shareholder of Processing.
Fuse Group reported a net loss of $444,492 for the year ended Sept.
30, 2022, compared to a net loss of $1.02 million for the year
ended Sept. 30, 2021. As of Dec. 31, 2022, the Company had
$130,069 in total assets, $671,670 in total liabilities, and a
total stockholders' deficit of $541,601.
Diamond Bar, California-based KCCW Accountancy Corp., the Company's
auditor since 2022, issued a "going concern" qualification in its
report dated Dec. 28, 2022, citing that as of Sept. 30, 2022, the
Company had recurring losses from operations, an accumulated
deficit, and a negative cash flows from operating activities. As
such there is substantial doubt about its ability to continue as a
going concern.
GAV REST: Taps Morrison Tenenbaum as Legal Counsel
--------------------------------------------------
GAV Rest. Corp. seeks approval from the U.S. Bankruptcy Court for
the Eastern District of New York to employ Morrison Tenenbaum, PLLC
as legal counsel.
The firm's services include:
a. advising the Debtor with respect to its powers and duties in
the management of its estate;
b. assisting in any amendments of schedules and other financial
disclosures and in the preparation, review or amendment of a
disclosure statement and plan of reorganization;
c. negotiating with creditors and taking the necessary legal
steps to confirm and consummate a plan of reorganization;
d. preparing legal papers;
e. appearing before the bankruptcy court; and
f. performing all other necessary legal services for the
Debtor.
The firm will be paid at these rates:
Attorneys $595 per hour
Associates $380 per hour
Paraprofessionals $200 per hour
In addition, the firm will seek reimbursement for its out-of-pocket
expenses.
The firm received from the Debtor a retainer of $15,000.
Lawrence Morrison, Esq., a partner at Morrison Tenenbaum, 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:
Lawrence F. Morrison, Esq.
Morrison Tenenbaum, PLLC
87 Walker Street, Floor 2
New York, NY 10013
Tel: (212) 620-0938
Email: lmorrison@m-t-law.com
About GAV Rest. Corp.
GAV Rest. Corp. filed a Chapter 11 bankruptcy petition (Bankr.
S.D.N.Y. Case No. 23-10275) on Feb. 27, 2023, with up to $50,000 in
assets and $100,001 to $500,000 in liabilities. On March 13, 2023,
the case was transferred to the U.S. Bankruptcy Court for the
Eastern District of New York under Case No. 23-40800.
Judge Jil Mazer-Marino oversees the case.
Lawrence F. Morrison, Esq., at Morrison Tenenbaum, PLLC is the
Debtor's legal counsel.
GENESIS GLOBAL: May 22 Claims Filing Deadline Set
-------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York set
May 22, 2023, at 4:00 p.m. (ET) as the last date and time for
persons and entities to file proofs of claim against Genesis Global
Holdco LLC and its debtor-affiliates.
The Court also set July 18, 2023, at 4:00 p.m. (ET) as the deadline
for governmental units to file their claims against the Debtors.
All proofs of claim must be submitted so as to be actually received
on or before the applicable bar date: If Electronically: by using
the website set by the Debtors' claims and noticing agent, Kroll
Restructuring Administration for the Chapter 11 cases located at
https://restructuring.ra.kroll/com/genesis by following
instructions for filing proofs of claim electronically. If by US
mail, overnight mail, delivery by hand or courier:
Genesis Inc. Claims Processing Center
c/o Prime Clerk LLC aka Kroll Restructuring
Administration
850 3rd Avenue
Suite 412
Brooklyn, NY 11232
About Genesis Global Holdco
Genesis Global Holdco, LLC, through its subsidiaries, and Global
Trading, Inc., provide lending and borrowing, spot trading,
derivatives and custody services for digital assets and fiat
currency.
Genesis Global Capital, LLC (GGC) and Genesis Asia Pacific PTE.
LTD. (GAP) provide lending and borrowing, spot trading, derivatives
and custody services for digital assets and fiat currency. Genesis
Global Holdco, LLC owns 100% of GGC and GAP.
Genesis Global Holdco, LLC, GGC and GAP each filed a voluntary
petition for relief under Chapter 11 of the Bankruptcy Code (Bankr.
S.D.N.Y. Lead Case No. 23-10063) on Jan. 19, 2023. The cases are
pending before the Honorable Sean H. Lane.
At the time of the filing, Genesis Holdco reported $100 million to
$500 million in both assets and liabilities.
Genesis Holdco is a sister company of Genesis Global Trading, Inc.
("GGT") and 100% owned by Digital Currency Group, Inc. ("DCG").
GGT, DCG and certain of the Holdco subsidiaries are not included in
the Chapter 11 filings. The non-debtor subsidiaries include Genesis
UK Holdco Limited, Genesis Global Assets, LLC, Genesis Asia (Hong
Kong) Limited, Genesis Bermuda Holdco Limited, Genesis Custody
Limited ("GCL"), GGC International Limited ("GGCI"), GGA
International Limited, Genesis Global Markets Limited, GSB 2022 II
LLC, GSB 2022 III LLC and GSB 2022 I LLC.
The Debtors tapped Cleary Gottlieb Steen & Hamilton, LLP as
bankruptcy counsel; Morrison Cohen, LLP as special counsel; Alvarez
& Marsal Holdings, LLC as financial advisor; and Moelis & Company,
LLC as investment banker. Kroll Restructuring Administration, LLC
is the Debtors' claims and noticing agent and administrative
advisor.
The ad hoc group of creditors is represented by Kirkland & Ellis,
LLP and Kirkland & Ellis International, LLP. The ad hoc group of
Genesis lenders is represented by Proskauer Rose, LLP.
The U.S. Trustee for Region 2 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
The committee tapped White & Case, LLP as bankruptcy counsel;
Houlihan Lokey Capital, Inc. as investment banker; Berkeley
Research Group, LLC as financial advisor; and Kroll as information
agent.
GWG HOLDINGS: Class 4(a) Unsecureds Owed $20M to Get 8.5% to 21.9%
------------------------------------------------------------------
GWG Holdings, Inc., et al., submitted a Disclosure Statement for
Modified Second Amended Joint Chapter 11 Plan dated April 17,
2023.
The proposed Second Amended Plan seeks to achieve an orderly wind
down of the Debtors' Estates that maximizes the value of all estate
assets.
The proposed Second Amended Plan is the culmination of more than
nine months of investigations and related diligence into the
Debtors' assets by the Debtors' Independent Directors and their
advisors, and hard-fought post-petition negotiations regarding the
structure of the Second Amended Plan that resulted in a settlement
(the "Mediated Settlement") supported by the Debtors, the
Bondholder Committee, and LBM (the Bondholder Committee and LBM
being referred to herein as the "Creditor Proponents"). The
Debtors, the Bondholder Committee, and LBM all believe the Second
Amended Plan represents the best possible outcome for Bondholders
and urge all Bondholders to vote to accept of the Second Amended
Plan.
The proposed wind-down under the Second Amended Plan will be
achieved by creating two liquidating trusts: (i) the Wind Down
Trust and (ii) the Litigation Trust. The Wind Down Trust will issue
trust interests (the New WDT Interests) to Holders of Claims and
Interests that are not paid in full in cash on the Effective Date
of the Second Amended Plan. Holders of the New WDT Interests
(including the Bondholders) will receive distributions via the Wind
Down Trust from four potential sources of value.
The Second Amended Plan is a waterfall Plan, which means that, in
general, the Bondholders are first in line to receive distributions
from the Wind Down Trust (subject to certain limited exceptions),
and the Bondholders and General Unsecured Creditors, pro rata, are
first in line to receive distributions on account of the Retained
Causes of Action. Each of the sources of value has uncertainty, and
the timing and amount of distributions will depend on a number of
factors that are outside the control of the Debtors.
The Wind Down Trust will liquidate the Policy Portfolio with a view
toward maximizing the value of the Policy Portfolio for the benefit
of holders of the New WDT Interests. The Policy Portfolio has a
face value of approximately $1.6 billion as of April 14, 2023.
However, because of the need for ongoing premium payments, among
other things, the actual present value of the Policy Portfolio is
significantly less than the face value. In addition, the entire
Policy Portfolio is currently collateral for the Vida DIP Facility
and is expected to be collateral for the Vida Exit Financing
Facility.
The Company holds interests in FOXO, which uses epigenetics
technology for the life insurance industry. On September 15, 2022,
FOXO merged with Delwinds Insurance Acquisition Corp., a special
purpose acquisition company, which was renamed FOXO Technologies
Inc. following the merger. FOXO currently is listed on the New York
Stock Exchange, and the Company owns approximately 4.6 million
common shares of FOXO. The price per share of FOXO's common stock
as of market closing on April 14, 2023 was $0.71, up $0.38 per
share for the week, which implies that the Debtors' interests in
FOXO have a value of $3,266,000, assuming that a purchaser could be
found for such interests.
Class 4(a) consists of General Unsecured Claims. Each Holder of an
Allowed General Unsecured Claim shall receive its pro rata share of
the New Series B WDT Interests. The New Series B WDT Interests may
be redeemed at any time without penalty at stated value and,
pending any such redemption, shall be entitled to Cash
distributions, but only pursuant to the priority of payment
waterfalls described in the Second Amended Plan. The allowed
unsecured claims total $20,278,288. This Class will receive a
distribution of 8.5% – 21.9% of their allowed claims.
The Wind Down Trustee shall make an initial Cash distribution to
holders of New WDT Interests consisting of the Net Cash Proceeds,
if any, within 60 days after the Effective Date, and on a
semi-annual basis thereafter to the extent of any Net Cash
Proceeds; provided, that the Wind Down Trustee may, in its sole
discretion, make additional special distributions to the extent of
any Net Cash Proceeds available; provided, further, that, in each
instance, no distribution shall be required unless the Net Cash
Proceeds then held by the Wind Down Trustee is equal to or greater
than the Minimum Distribution Amount of $15,000,000 in Cash.
A full-text copy of the Disclosure Statement dated April 17, 2023
is available at https://bit.ly/3GXfBM5 from Donlinrecano, the
claims agent.
Co-Counsel for the Debtors:
Matthew D. Cavenaugh, Esq.
Kristhy M. Peguero, Esq.
JACKSON WALKER LLP
1401 McKinney Street, Suite 1900
Houston, TX 77010
Telephone: (713) 752-4200
E-mail: kpeguero@jw.com
mcavenaugh@jw.com
Counsel for the Debtors:
Charles S. Kelley, Esq.
MAYER BROWN LLP
700 Louisiana Street, Suite 3400
Houston, TX 77002-2730
Telephone: (713) 238-3000
E-mail: ckelley@mayerbrown.com
- and -
Thomas S. Kiriakos, Esq.
Louis S. Chiappetta, Esq.
Jamie R. Netznik, Esq.
Lisa Holl Chang
Joshua R. Gross, Esq.
Jade Edwards, Esq.
71 S. Wacker Drive
Chicago, IL 60606
Telephone: (312) 782-0600
E-mail: tkiriakos@mayerbrown.com
lchiappetta@mayerbrown.com
jnetznik@mayerbrown.com
lhollchang@mayerbrown.com
jgross@mayerbrown.com
jedwards@mayerbrown.com
- and -
Adam C. Paul, Esq.
Lucy F. Kweskin, Esq.
Ashley Anglade, Esq.
1221 Avenue of the Americas
New York, NY 10020-1001
Telephone: (212) 506-2500
E-mail: apaul@mayerbrown.com
lkweskin@mayerbrown.com
aanglade@mayerbrown.com
About GWG Holdings
Headquartered in Dallas Texas, GWG Holdings, Inc. (NASDAQ: GWGH)
conducts its life insurance secondary market business through a
wholly-owned subsidiary, GWG Life, LLC, and GWG Life's wholly owned
subsidiaries.
GWG Holdings Inc. and affiliates sought Chapter 11 bankruptcy
protection (Bankr. S.D. Texas Lead Case No. 22-90032) on April 20,
2022. In the petition filed by Murray Holland, president and chief
executive officer, GWG Holdings disclosed between $1 billion and
$10 billion in both assets and liabilities.
Judge Marvin Isgur oversees the cases.
The Debtors tapped Mayer Brown, LLP and Jackson Walker, LLP as
bankruptcy counsels; Tran Singh, LLP as special conflicts counsel;
FTI Consulting, Inc. as financial advisor; and PJT Partners, LP as
investment banker. Donlin Recano & Company is the Debtors' notice
and claims agent.
National Founders LP, a debtor-in-possession (DIP) lender, is
represented by Michael Fishel, Esq., Matthew A. Clemente, Esq., and
William E. Curtin, Esq., at Sidley Austin, LLP.
The U.S. Trustee for Region 7 appointed an official committee to
represent bondholders in the Debtors' cases. The committee tapped
Akin Gump Strauss Hauer & Feld, LLP and Porter Hedges, LLP as legal
counsels; Piper Sandler & Co. as investment banker; and
AlixPartners, LLP as financial advisor.
HELLO ALBEMARLE: Involuntary Chapter 11 Case Summary
----------------------------------------------------
Alleged Debtor: Hello Albemarle LLC
2415 Albemarle Rd
Brooklyn NY 11226
Business Description: The Debtor is a Single Asset Real Estate
(as defined in 11 U.S.C. Section 101(51B)).
Involuntary Chapter
11 Petition Date: April 19, 2023
Court: United States Bankruptcy Court
Eastern District of New York
Case No.: 23-41326
Judge: Hon. Nancy Hershey Lord
Petitioners' Counsel: Kevin J. Nash, Esq.
GOLDBERG WEPRIN FINKEL GOLDSTEIN LLP
1501 Broadway 22nd Floor
New York, NY 10036
Tel: (212) 221-5700
Email: knash@gwfglaw.com
A full-text copy of the Involuntary Petition is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/S6BQIKI/Hello_Albemarle_LLC__nyebke-23-41326__0001.0.pdf?mcid=tGE4TAMA
Alleged creditors who signed the petition:
Petitioner Nature of Claim Claim Amount
1. JG Albemarle LLC Unfunded Reimbursement $243,000
1069 58th Street
Brooklyn NY 11219
JG Albemarle B LLC Unfunded Reimbursement $324,000
1069 58th Street
Brooklyn NY 11219
NBC Charitable Foundation Inc. Unfunded Reimbursement $300,000
4903 17th Avenue
Brooklyn NY 11204
YBCF Realty LLC Unfunded Reimbursement $299,000
5014 16th Avenue
Brooklyn NY 11219
Lisa Stewart Hughes Unfunded Reimbursement $269,000
2155 NW 140th Avenue
Pembroke Pines FL 33028
Jonathan Mueller Unfunded Reimbursement $195,000
1563-48th Street
Brooklyn NY 11219
Yitzchok & Leah Mueller Unfunded Reimbursement $810,000
1637-45th Street
Brooklyn NY 11204
IEH AUTO PARTS: Taps B. Riley as Inventory Valuation Advisor
------------------------------------------------------------
IEH Auto Parts Holdings, LLC and its affiliates seek approval from
the U.S. Bankruptcy Court for the Southern District of Texas to
employ B. Riley Advisory & Valuation Services, LLC.
The Debtors require an inventory valuation and appraisal advisor
to:
(1) Provide the Debtors and their lender with a projection of
gross and net inventory liquidation value of the Debtors' inventory
based upon a properly conducted store closing, going out of
business or total liquidation.
(2) Analyze the Debtors' inventory reporting system in order to
assess the net recovery:
(i) asses the efficiency, accuracy and responsiveness of the
current system and management's use of the system for decision
making; and
(ii) review the process of determining understock and overstock
inventory positions as well as slow moving and underperforming
inventory.
(3) Perform recovery valuations and such values will be the
basis of recommended advance rates. Valuations will consider the
following objective criteria:
(i) inventory turnover by merchandise category.
(ii) maintained gross margin by merchandise category.
(iii) inventory mix and sales mix.
(iv) relationship inventory to sales volume.
(v) balance of assortment of inventory.
(vi) review of condition of inventory.
The firm will be paid the sum of $55,000, plus out-of-pocket costs
for its services.
Bill Soncini, national marketing manager of B. Riley, 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:
Bill Soncini
B. Riley Advisory & Valuation Services, LLC
30870 Russell Ranch Road, Suite 250
Westlake Village, CA 91362
Tel: (818) 884-3737
Direct: (312) 777-7945
Email: bsoncini@brileyfin.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. The company 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
their chief executive officer, John Michael Neyrey, the Debtors
reported between $100 million and $500 million in both assets and
liabilities.
Judge Christopher M. Lopez oversees the cases.
The Debtors tapped Jackson Walker, LLP and The Law Office of Liz
Freeman, PLLC as legal counsels; Lincoln International, LLC as
investment banker; Portage Point Partners, LLC as restructuring
advisor; and B. Riley Real Estate, LLC as real estate advisor.
The U.S. Trustee for Region 7 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
Kane Russell Coleman Logan, PC is the committee's legal counsel.
INDIE BREWING: Unsecureds Will Get 100% of Claims in Plan
---------------------------------------------------------
Indie Brewing, LLC, filed with the U.S. Bankruptcy Court for the
Central District of California a Disclosure Statement describing
Chapter 11 Plan dated April 17, 2023.
The Debtor operated a craft brewery and tasting room in the Boyle
Heights section of Los Angeles from 2015 through 2022. The Debtor
had been profitable in the past, and was very well regarded,
however, a number of events impacted its ability to continue
profitable operations. First, due to the COVID Pandemic its
Business was severely impacted.
Second, prior to and throughout the COVID Pandemic and presently
the Debtor has had a number of disputes with its landlord, 2301
East 7th Street, LLC (the "Landlord"). In March 2021, the Landlord,
sued the Debtor and its members for failure to pay rent during the
Pandemic. The lawsuit resulted in even further duress of the Debtor
and its members at a time when it was losing a significant amount
of money and barely operating.
The sale to Tortugo Brewing Company, LLC in addition to
consideration of $7,200 paid to the Debtor by Tortugo, the
Bankruptcy Court also authorized the assumption and assignment of
the obligations of the debtor to U.S. Bank Equipment Finance
estimated to be approximately $89,176.56 plus accrued interest.
U.S. Bank had a secured 1st priority interest on the equipment sold
and assigned to Tortugo. This sale reduced the Debtors liability to
U.S. Bank to zero.
The Plan is a liquidation plan in which the Debtor has reorganized
its business operations by selling its personal property assets
during the bankruptcy case and paying certain secured creditors on
their security interests, and continuing to litigate a claim
against its previous landlord which is the only remaining material
asset of the bankruptcy estate. Once the litigation Is resolved,
and if the Debtor is successful in the litigation, the Debtor will
be able to make orderly distributions to creditors of the Debtor's
estate (the "Estate") on their prepetition claims.
The Debtor estimates that such distributions will be accomplished
approximately 2 years from the effective date of the Plan.
Therefore, payments under the Plan will be made from the proceeds
of the litigation of the Debtor's claims against its previous
landlord. If the Debtor is not successful in the litigation, then
it is anticipated that creditors will not receive any distributions
from the Estate. Thus, the Plan is a liquidation Plan.
Class 5 consists of General Unsecured Claims. The Reorganized
Debtor will pay creditors holding Allowed Class 5 General Unsecured
Claims from the proceeds of the Litigation within 30 days of the
Debtor receiving such proceeds, if the Debtor is successful. The
Debtor anticipates that if successful in the Litigation it will be
able to pay Class 5 creditors in full on their Allowed Claim. This
class is impaired.
The treatment of Class 5 claim holders will be in full settlement
and satisfaction of all obligations of the Debtor to holders of
Class 5 claims. The allowed unsecured claims total $160,741. This
Class will receive a distribution of 100% of their allowed claims.
The Debtors equity interests will retain equal interests in the
Reorganized Debtor.
The Plan will be funded by the proceeds of the Litigation against
the Landlord, in which the Debtor claims damages of at least
$600,000 primarily based upon the Landlord's bad faith actions in
not consenting and interfering with the Sale of the Business to the
Second Buyer, and the Landlord violating the Moratorium imposed by
the County of Los Angeles by demanding rent to be paid that was not
yet due. If the Debtor is successful, it is expected to obtain a
judgment of at least $600,000 against the Landlord which should
enable to pay creditors in full.
The hearing at which the Court will determine whether or not to
confirm the Plan will take place on June 21, at 10:00 a.m. in
Courtroom 1568, 255 East Temple Street, Los Angeles, California
90012.
Objections to confirmation of the Plan must be filed and served by
June 7, 2023, at 4:00 p.m.
A full-text copy of the Disclosure Statement dated April 17, 2023
is available at https://bit.ly/40frDr7 from PacerMonitor.com at no
charge.
Attorneys for Debtor:
Michael S. Kogan, Esq.
KOGAN LAW FIRM, APC
11500 W. Olympic Blvd., Suite 400
Los Angeles, California 90064
Telephone: (310) 954-1690
Email: mkogan@koganlawfirm.com
About Indie Brewing
Indie Brewing LLC -- https://indiebrewco.com/ -- is a
California-based brewing company.
Indie Brewing sought Chapter 11 bankruptcy protection (Bankr. C.D.
Cal. Case No. 22-12633) on May 10, 2022. In the petition filed by
Kevin M. O'Malley, member, Indie Brewing estimated between $500,000
and $1 million in both assets and liabilities.
Judge Ernest M. Robles oversees the case.
The Debtor tapped Michael S. Kogan, Esq., at Kogan Law Firm, APC as
counsel and Marton & Associates as accountant.
KJMN PROPERTIES: Taps Berkshire Hathaway as Real Estate Broker
--------------------------------------------------------------
KJMN Properties, LLC seeks approval from the U.S. Bankruptcy Court
for the Northern District of California to employ Berkshire
Hathaway Home Services Real Time Realty.
The Debtor requires a real estate broker to market and sell its
real property located at 4680 Meritage Ct., Gilroy, Calif.
The firm will be paid a commission of 5% of the final sales price.
As disclosed in court filings, Berkshire is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Sigifredo Ponce
Berkshire Hathaway Home Services
Real Time Realty
3 SW San Carlos & 5th St.
Carmel By The Sea, CA 93921
Tel: (831) 444-8500
About KJMN Properties
KJMN Properties LLC filed a petition for relief under Chapter 11 of
the Bankruptcy Code (Bankr. N.D. Calif. Case No. 23-50160) on Feb.
15, 2023. In the petition filed by Kim Narog, as managing member,
the Debtor reported $1 million to $10 million in both assets and
liabilities.
Judge Stephen L. Johnson oversees the case.
The Debtor is represented by E. Vincent Wood, Esq., at The Law
Offices of E. Vincent Wood.
KRUGER PRODUCTS: DBRS Assigns BB Issuer Rating, Trend Negative
--------------------------------------------------------------
DBRS Limited assigned an Issuer Rating of BB with a Negative trend
to Kruger Products Inc. and concurrently assigned a rating of B
(high) with a Negative trend to the Company's Senior Unsecured
Notes, with a Recovery Rating of RR6.
On January 1, 2023, Kruger Products, through a corporate
reorganization, purchased and assumed from its parent company,
Kruger Products L.P. (KPLP), all of its properties, operations,
assets, and liabilities. KPLP was subsequently dissolved.
Consequently, DBRS Morningstar assigned KPLP's Issuer Rating and
Senior Unsecured Notes rating to Kruger Products, and discontinued
KPLP's ratings. (Refer to the press release titled "DBRS
Morningstar Discontinues Ratings on Kruger Products L.P." published
on March 28, 2023).
The ratings on Kruger Products continue to be supported by the
Company's strong brands and leading market position in the tissue
products industry, stable demand, and significant barriers to entry
and also reflect the intense competition, volatile input costs, and
product/market concentration. The Negative trends reflects DBRS
Morningstar's concerns that, against the backdrop of a challenging
operating environment, Kruger Products could be challenged to grow
EBITDA enough to support a sufficient level of deleveraging over
the near to medium term, given the Company's aggressive debt funded
capital expenditure (capex) program.
On September 2, 2022, DBRS Morningstar changed the trends on KPLP's
Issuer Rating and Senior Unsecured Notes rating to Negative from
Stable and confirmed the Issuer Rating at BB and the Senior
Unsecured Notes rating at B (high). The Negative trends reflected
the significant deterioration in KPLP's financial performance in H1
2022 (six months ended June 30, 2022), attributable to soaring
inflation on input and operating costs. DBRS Morningstar also
commented that a near-term recovery might be difficult to achieve
as KPLP could be challenged to continue to pass through price
increases to protect its gross profit margins without negatively
affecting volumes. At that time, DBRS Morningstar stated that,
should a meaningful recovery in EBITDA from a combination of margin
and/or volume growth not occur in the next two quarters, the
ratings could be downgraded, regardless of any capital conserving
measures undertaken by KPLP to improve credit metrics through debt
reduction. Conversely, if price increases, input and operating cost
relief, and cost-saving and efficiency-improving initiatives were
to lead to restored EBITDA growth and consequently a recovery in
key credit metrics over the following four quarters, the ratings
outlook could stabilize.
Since DBRS Morningstar's last rating action, KPLP reported results
for the H2 2022 (six months ended December 31, 2022). Revenue grew
to $885 million in H2 2022, up 11% on H1 2022 levels of
approximately $800 million, driven by price increases in the
Consumer and Away-From-Home segments. Contrary to DBRS
Morningstar's previous expectations, volumes grew from H1 2022
levels, particularly in the Consumer segment, notwithstanding these
price increases. As such, revenue for the full-year 2022 increased
to approximately $1.7 billion, from below $1.5 billion in 2021.
EBITDA recovered to $75 million in H2 2022, compared with $41
million in H1 2022, attributable to price increases, lower freight
costs, improving operating leverage, and cost-saving and
efficiency-improving initiatives, which more than offset pulp and
commodity price pressures and higher labor and manufacturing costs,
as well as labor shortages and operational inefficiencies at KPLP's
Memphis manufacturing facility. Consequently, EBITDA for the
full-year 2022 declined to $116 million, compared with $153 million
in 2021. The decline in EBITDA, coupled with an increase in debt in
relation to KPLP's expansionary capex initiatives—the TAD
Sherbrooke and Sherbrooke Expansion projects—resulted in
debt-to-EBITDA deteriorating to 10.8 times (x) in 2022 from 7.3x in
2021.
Looking ahead to 2023, DBRS Morningstar projects Kruger Products'
revenue to grow to approximately $1.85 billion, as the Company
should realize the full benefit of pricing actions that were
implemented in 2022, coupled with the impact of further potential
price increases during the year. The topline should also benefit
from volume growth in 2023, as both the facial tissue line at the
Company's Memphis manufacturing facility and the TAD Sherbrooke
project ramp up. DBRS Morningstar believes revenue should grow
toward $2.0 billion by 2025, driven by further volume growth as
these expansionary capex initiatives reach full production capacity
and the Sherbrooke Expansion project ramps up. These increased
volumes of higher-margin tissue products, coupled with the benefit
from further potential price increases and cost saving-initiatives,
should contribute to EBITDA margin recovery and growth in the near
to medium term. Kruger Products' efficiency-improving initiatives,
including the shut-down of certain older and inefficient production
assets at its Memphis manufacturing facility in early 2023, should
also improve operating leverage and benefit EBITDA margins. That
said, DBRS Morningstar believes that EBITDA margin recovery and
growth could be moderated by a change in product mix as consumers
shift from branded to private-label products in response to higher
prices, coupled with persistent inflationary cost pressures. As
such, DBRS Morningstar believes EBITDA should grow toward $200
million in 2023 and rise above $230 million by 2025.
DBRS Morningstar believes that operating cash flows should continue
to trend in line with earnings, growing to approximately $115
million in 2023 from above $50 million in 2022, and toward $150
million by 2025. However, in 2023, DBRS Morningstar forecasts free
cash flow (FCF) after dividends and before changes in working
capital to remain in a net deficit position, as capex, including
the Sherbrooke Expansion project, increases to between $200 million
and $230 million from $115 million in 2022, and the gross dividend
outlay remains relatively flat on the 2022 level of approximately
$50 million. Kruger Products is expected to complete the Sherbrooke
Expansion project by the end of 2024; consequently, capex is
expected to decrease to around $50 million in 2025. The lower
capex, coupled with higher operating cash flows and a modest
increase in the cash dividend outlay, should result in meaningful
levels of FCF over the medium term. In the near term, DBRS
Morningstar expects the forecast FCF shortfall, principle lease
payments, and mandatory debt repayments will be funded by available
cash on hand, higher borrowings, and proceeds from Kruger Inc.'s
dividend reinvestment plan participation (DRIP), which DBRS
Morningstar anticipates will remain at 100% in 2023. That said,
over the medium term the projected FCF surplus, together with
proceeds from Kruger Inc.'s DRIP participation, should finance
principle lease payments and mandatory debt repayments. As such,
DBRS Morningstar forecasts operating cash flow as a percentage of
debt to increase to above 8.0% in 2023 from approximately 4.0% in
2022, debt-to-EBITDA to improve to below 7.5x in 2023 from 10.8x in
2022, and EBITDA interest coverage to increase to 2.5x in 2023 from
below 2.0x in 2022. By 2025, DBRS Morningstar projects operating
cash flow as a percentage of debt to increase above 10.0%,
debt-to-EBITDA to improve below 6.0x, and EBITDA interest coverage
to grow toward 3.0x.
That said, should DRBS Morningstar become increasingly concerned
that the Company will be challenged to deliver results in line with
DBRS Morningstar's expectations (i.e., debt-to-EBITDA remaining
above 7.5x at the end of 2023, 6.5x at the end of 2024, and 6.0x at
the end of 2025) because of weaker-than-expected operating
performance and/or more-aggressive-than-expected financial
management (i.e., further debt-financed capex), a negative rating
action will result. Conversely, if the Company delivers an
operating performance in line with or better than DBRS
Morningstar's expectations such that DBRS Morningstar gains
sufficient confidence that the Company will further deleverage to a
level appropriate for the BB rating (i.e., debt-to-EBITDA below
6.0x), the ratings outlook could stabilize.
Notes: All figures are in Canadian dollars unless otherwise noted.
LEXARIA BIOSCIENCE: Incurs $1.3 Million Net Loss in Second Quarter
------------------------------------------------------------------
Lexaria Bioscience Corp. has filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $1.31 million on $35,015 of revenue for the three months ended
Feb. 28, 2023, compared to a net loss of $1.45 million on $30,650
of revenue for the three months ended Feb. 28, 2022.
For the six months ended Feb. 28, 2023, the Company reported a net
loss of $3.08 million on $136,491 of revenue compared to a net loss
of $3.45 million on $44,530 of revenue for the six months ended
Feb. 28, 2022.
As of Feb. 28, 2023, the Company had $4.85 million in total assets,
$223,131 in total liabilities, and $4.63 million in total
stockholders' equity.
Lexaria said, "We have incurred net losses of approximately $7.4m
and $4.2m respectively in the past two fiscal years. We expect to
continue to incur significant expenditures for R&D and operational
activities resulting in net losses in the upcoming 12 months and
beyond. Our net losses may fluctuate significantly from quarter to
quarter and year to year, depending on the stage and complexity of
our R&D studies and related expenditures, the receipt of additional
revenues from the licensing of our technology and B2B sales, if
any, and the receipt of payments under any current or future
collaborations we may enter into.
"As the Company continues with our IND application process and
progresses into the clinical development of our initial product
candidate, the need for substantial capital resources increases.
Our existing cash will not be sufficient to complete the full
development, testing and commercialization of an FDA approved
product candidate. To achieve this objective, we will require
substantial funding in the future."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1348362/000164033423000636/lxrp_10q.htm
About Lexaria
Lexaria Bioscience Corp. -- http://www.lexariabioscience.com-- is
a biotechnology company developing the enhancement of the
bioavailability of a broad range of fat-soluble active molecules
and active pharmaceutical ingredients using its patented
DehydraTECH drug delivery technology. DehydraTECH combines
lipophilic molecules or APIs with specific long-chain fatty acids
and carrier compounds that improve the way they enter the
bloodstream, increasing their effectiveness and allowing for lower
overall dosing while promoting healthier oral ingestion methods.
Lexaria Bioscience reported a net loss and comprehensive loss of
$7.38 million for the year ended Aug. 31, 2022, a net loss and
comprehensive loss of $4.19 million for the year ended Aug. 31,
2021, a net loss and comprehensive loss of $4.08 million for the
year ended Aug. 31, 2020, and a net loss and comprehensive loss of
$4.16 million for the year ended Aug. 31, 2019. As of Nov. 30,
2022, the Company had $6.21 million in total assets, $281,520 in
total liabilities, and $5.93 million in total stockholders' equity.
LINDBLAD EXPEDITIONS: Moody's Assigns 'B3' CFR, Outlook Stable
--------------------------------------------------------------
Moody's Investors Service assigned a B3 rating to Lindblad
Expeditions Holdings, Inc.'s (Lindblad) new $275 million backed
senior secured note issuance. Moody's withdrew Lindblad
Expeditions, LLC's B3 corporate family rating, B3-PD probability of
default rating and SGL-3 speculative grade liquidity rating and
concurrently assigned the same ratings to Lindblad Expeditions
Holdings, Inc. Lindblad Expeditions, LLC's existing backed senior
secured ratings were also affirmed at B3. The outlook on all
ratings is stable.
Proceeds from the new $275 million of 5-year backed senior secured
notes will be used to repay outstanding amounts under existing
export credit facilities related to two ships, pay fees and
expenses and add some cash to the balance sheet. Moody's views the
transaction positively as it replaces variable rate debt with fixed
rate debt and eliminates quarterly amortization and financial
maintenance covenants required by the export credit facilities.
However, the company's ratings and stable outlook remain unchanged
due to the company's high leverage and risks associated with full
ramp up of operations this summer. Moody's forecasts Lindblad's
debt/EBITDA will approximate 8x at the end of 2023 before improving
towards 6x at the end of 2024.
Assignments:
Issuer: Lindblad Expeditions Holdings, Inc.
Probability of Default Rating, Assigned B3-PD
Speculative Grade Liquidity Rating, Assigned SGL-3
LT Corporate Family Rating, Assigned B3
BACKED Senior Secured Regular Bond/Debenture, Assigned B3 (LGD3)
Affirmations:
Issuer: Lindblad Expeditions, LLC
BACKED Senior Secured Regular Bond/Debenture, Affirmed B3 (LGD3)
BACKED Senior Secured Bank Credit Facility, Affirmed B3 (LGD3)
Withdrawals:
Issuer: Lindblad Expeditions, LLC
Probability of Default Rating, Withdrawn, previously rated B3-PD
Speculative Grade Liquidity Rating, Withdrawn, previously rated
SGL-3
LT Corporate Family Rating, Withdrawn, previously rated B3
Outlook Actions:
Issuer: Lindblad Expeditions Holdings, Inc.
Outlook, Assigned Stable
Issuer: Lindblad Expeditions, LLC
Outlook, Remains Stable
RATINGS RATIONALE
Lindblad's B3 CFR reflects its aforementioned high leverage as the
company more than doubled its debt from the end of 2019 to the end
of 2022 primarily due to new ship debt. Other credit risks include
its small scale in terms of absolute level of earnings and number
of vessels.
The company's ratings benefit from its partnerships with National
Geographic Society, DC (Aa2 positive) and the World Wildlife Fund,
DC (through its Natural Habitats brand), as well as its strong
brand name recognition in the expedition travel segment of the
travel industry. The company will benefit from strong underlying
demand – at the end of the first quarter of 2023 bookings for
2023 were 46% above 2019.
The stable outlook reflects Lindblad's adequate liquidity and
Moody's forecast that the company will improve debt/EBITDA to about
6x at the end of 2024.
Lindblad's liquidity is adequate with about $100 million of cash
and equivalents at the end of 2022 and full availability under its
$45 million committed backed senior secured revolving credit
facility (RCF) expiting in 2027. There are no material debt
maturities prior to 2027 when its RCF and $360 million backed
senior secured notes come due. The company's RCF contains a
springing leverage covenant that is only tested if more than 35% of
the commitment is drawn. Moody's does not expect the covenant will
be tested. Lindblad's alternate sources of liquidity are limited
because the bank credit facilities are secured by substantially all
of the company's assets, but the company may be able to sell some
assets for liquidity if necessary (i.e. older ships).
Moody's has decided to withdraw the ratings for its own business
reasons.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings could be upgraded if debt/EBITDA is sustained below 5.5x
with EBITA/interest coverage of above 2.0x. Ratings could be
downgraded if there is any deterioration in liquidity, or if
debt/EBITDA were to remain above 6.5x at the end of 2024.
Headquartered in New York, New York, Lindblad Expeditions Holdings,
LLC and its consolidated subsidiaries (Nasdaq: LIND) is a provider
of tour and adventure travel related services to over 40
destinations on six continents. The company owns and operates 10
expedition ships and five seasonal charter vessels with capacities
ranging from 48 to 148 passengers. Lindblad generated net revenue
of about $425 million in 2022.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
LOYALTY VENTURES: Taps Akin Gump Strauss Hauer & Feld as Counsel
----------------------------------------------------------------
Loyalty Ventures Inc. and its affiliates seek approval from the
U.S. Bankruptcy Court for the Southern District of Texas to employ
Akin Gump Strauss Hauer & Feld, LLP as their legal counsel.
The firm's services include:
(a) advising the Debtors with respect to their powers and duties
in the continued management and operation of their businesses and
properties;
(b) advising and consulting on the conduct of the Debtors'
Chapter 11 cases, including all legal and administrative
requirements of operating in Chapter 11;
(c) attending meetings and negotiating with representatives of
creditors and other parties in interest;
(d) taking all necessary actions to protect and preserve the
Debtors' estates, including prosecuting actions on the Debtors'
behalf, defending any action commenced against the Debtors, and
representing the Debtors in negotiations concerning litigation in
which the Debtors are involved, including objections to claims
filed against the estates;
(e) preparing pleadings;
(f) representing the Debtors in connection with obtaining
authority to continue using cash collateral and post-petition
financing;
(g) taking any necessary action on behalf of the Debtors to
negotiate, prepare and obtain approval of a disclosure statement
and confirmation of a Chapter 11 plan and all documents related
thereto;
(h) advising the Debtors in connection with any potential sale
of their assets;
(i) appearing before the bankruptcy court and any appellate
courts;
(1) advising the Debtors regarding tax matters;
(k) advising the Debtors regarding regulatory and any other
governmental related matters; and
(1) performing all other necessary legal services for the
Debtors, including (i) analyzing the Debtors' leases and contracts
and the assumption and assignment or rejection thereof; (ii)
analyzing the validity of liens against the Debtors; and (iii)
advising the Debtors on corporate and litigation matters.
The firm will be paid at these rates:
Partners $1,300 to $2,145 per hour
Senior Counsel $940 to $1,550 per hour
Counsel $1,120 to $1,500 per hour
Associates $735 to $1,175 per hour
Paraprofessionals $215 to $510 per hour
Akin received payments in the aggregate amount of $10,175,818.91
for services rendered and expenses incurred collectively for all
matters on which the firm has been advising the Debtors. Of this
amount, the firm currently holds an advance payments balance of
$2,006,247.49.
In addition, the firm will receive reimbursement for out-of-pocket
expenses incurred.
Philip Dublin, Esq., a partner at Akin, disclosed in a court filing
that his firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code.
In accordance with Appendix B-Guidelines for reviewing fee
applications filed by attorneys in larger Chapter 11 cases, Akin
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 post-petition, explain the
difference and the reasons for the difference.
Response: The firm has represented the Debtors on various
matters prior to the petition date. During that period, the firm
charged the Debtors its standard rates in effect at that time.
Except for its standard annual adjustments to billing rates in
January of each year, the firm's billing rates did not otherwise
change or increase during the firm's engagement.
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 for this matter.
The firm can be reached at:
Philip C. Dublin, Esq.
Meredith A. Lahaie, Esq.
Akin Gump Strauss Hauer & Feld, LLP
One Bryant Park
New York, NY 10036
Tel: (212) 872-1000
Fax: (212) 872-1002
Email: pdublin@akingump.com
mlahaie@akingump.com
-- and --
Marty L. Brimmage, Jr., Esq.
Lacy M. Lawrence, Esq.
Rachel Biblo Block, Esq.
Akin Gump Strauss Hauer & Feld, LLP
2300 N. Field Street, Suite 1800
Dallas, TX 75201
Tel: (214) 969-2800
Fax: (214) 969-4343
Email: mbrimmage@akingump.com
llawrence@akingump.com
rbibloblock@akingump.com
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 and its affiliates sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. S.D. Texas Lead Case No.
23-90111) on March 10, 2023. As of Sept. 30, 2022, Loyalty Ventures
had $1,591,218,000 in total assets against $1,980,850,000 in total
liabilities.
Judge Christopher Lopez oversees the cases.
The Debtors tapped Akin Gump Strauss Hauer & Feld, LLP and Jackson
Walker, LLP as U.S. bankruptcy counsels; PJT Partners, LP as
investment banker; Alvarez & Marsal North America, LLC, as
restructuring advisor; and Kroll Restructuring Administration, LLC
as claims, noticing and solicitation agent. Cassels Brock &
Blackwell, LLP serves as Canadian legal counsel to LoyaltyOne while
Alvarez & Marsal Canada ULC serves as LoyaltyOne's Canadian
financial and restructuring advisor.
Bank of America, N.A. is the 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. Bank of America
tapped Haynes and Boone, LLP as legal counsel and FTI Consulting,
Inc. as financial advisor.
The Ad Hoc Group of Term B Loan Lenders retained Gibson Dunn &
Crutcher, LLP as counsel and Piper Sandler & Co as investment
banker.
LTL MANAGEMENT: J&J Reports Loss After $6.9-Billion Charge
----------------------------------------------------------
The Financial Times reports that Johnson & Johnson reported a
first-quarter loss as it booked a $6.9 billion charge linked to its
proposal to settle tens of thousands of legal claims related to
allegations its talcum powder caused cancer.
The world's biggest healthcare products company said on Tuesday it
was unfortunate that it had to pay claimants for what it described
as "baseless scientific claims" but noted that protracted
litigation was costly and "inherently uncertain".
J&J said 60,000-70,000 talc claimants supported its proposal
despite a push by a small group of plaintiffs' lawyers to restrict
their clients from voting on a settlement proposed in a bankruptcy
scheme.
J&J disclosed the one-off charge in first-quarter results that
showed the company made a net loss of $68mn despite generating
better than expected sales in the three months to the end of
March.
"Our proposal really aims to bring certainty in a very efficient
manner," said Joseph Wolk, chief financial officer.
"But curiously, we've got a small number of plaintiffs' attorneys
who don’t even want to give their claimants the right to vote."
J&J shares fell 2.8 percent on Tuesday.
The company proposed an $8.9 billion settlement this month to
resolve long-running litigation alleging that its cosmetic talc
products had caused tens of thousands of people to develop ovarian
and mesothelioma cancers. If approved, the payout over 25 years
would be one of the largest product liability lawsuits in US
history.
J&J has said a settlement is only possible under the auspices of
the bankruptcy system, which would protect the company against
future talc claims, as well as current litigation.
But it faces opposition from several law firms representing talc
claimants, which argue J&J's latest proposal is an unlawful abuse
of the bankruptcy system.
The US bankruptcy trustee, a division of the US Department of
Justice, has also opposed J&J's strategy arguing there are "slim to
nonexistent prospects" for a successful reorganisation and any
additional delay to cases brought by claimants would be
"unconscionable".
The settlement proposal by J&J marks the second time it has tried
to use the bankruptcy courts to manage claims linked to cosmetic
talc, a product it has sold for more than a century. In January an
appeals court shot down the company's attempt to use a strategy
called the "Texas two-step", whereby it had set aside $2 billion in
a trust to compensate claimants.
Under this strategy J&J created a unit, LTL, to house all talc
claims and put it into Chapter 11. It then asked the judge to halt
all civil court cases while a restructuring proposal and settlement
could be put to claimants.
The US Court of Appeals for the Third Circuit dismissed the
bankruptcy of LTL, finding that the unit was not in financial
distress -- a decision that put all the talc claims back into the
civil court system.
Before any of the talc hearings could resume, J&J put its LTL
subsidiary back into bankruptcy, arguing that it had addressed the
concerns of the appeals court and had won support for a settlement
from most claimants.
J&J will today ask a bankruptcy judge in New Jersey to again place
a stay on all the lawsuits to enable it to finalise a restructuring
plan.
The company is eager to resolve the uncertainty regarding the talc
claims before it spins off its consumer health division in coming
months.
J&J raised its full-year sales and earnings forecasts for 2023 on
Tuesday after reporting a 5.6 per cent increase in sales to $24.7bn
in the first quarter.
About LTL Management
LTL Management, LLC, is a subsidiary of Johnson & Johnson (J&J),
which was formed to manage and defend thousands of talc-related
claims and oversee the operations of Royalty A&M. Royalty A&M owns
a portfolio of royalty revenue streams, including royalty revenue
streams based on third-party sales of LACTAID, MYLANTA/MYLICON and
ROGAINE products.
LTL Management filed a petition for Chapter 11 protection (Bankr.
W.D.N.C. Case No. 21-30589) on Oct. 14, 2021. The case was
transferred to New Jersey (Bankr. D.N.J. Case No. 21-30589) on Nov.
16, 2021. The Hon. Michael B. Kaplan is the case judge. At the
time of the filing, the Debtor was estimated to have $1 billion to
$10 billion in both assets and liabilities.
The Debtor tapped Jones Day and Rayburn Cooper & Durham, P.A., as
bankruptcy counsel; King & Spalding, LLP and Shook, Hardy & Bacon
LLP as special counsel; McCarter & English, LLP as litigation
consultant; Bates White, LLC as financial consultant; and
AlixPartners, LLP as restructuring advisor. Epiq Corporate
Restructuring, LLC, is the claims agent.
An official committee of talc claimants was formed in the Debtor's
Chapter 11 case on Nov. 9, 2021. On Dec. 24, 2021, the U.S.
Trustee for Regions 3 and 9 reconstituted the talc claimants'
committee and appointed two separate committees: (i) the official
committee of talc claimants I, which represents ovarian cancer
claimants, and (ii) the official committee of talc claimants II,
which represents mesothelioma claimants.
The official committee of talc claimants I tapped Genova Burns LLC,
Brown Rudnick LLP, Otterbourg PC and Parkins Lee & Rubio LLP as its
legal counsel. Meanwhile, the official committee of talc claimants
II is represented by the law firms of Cooley LLP, Bailey Glasser
LLP, Waldrep Wall Babcock & Bailey PLLC, Massey & Gail LLP, and
Sherman Silverstein Kohl Rose & Podolsky P.A.
Re-Filing of Chapter 11 Petition
On January 30, 2023, a panel of the Third Circuit issued an opinion
directing this Court to dismiss the 2021 Chapter 11 Case on the
basis that it was not filed in good faith. Although the Third
Circuit panel recognized that the Debtor "inherited massive
liabilities" and faced "thousands" of future claims, it concluded
that the Debtor was not in financial distress before the filing.
On March 22, 2023, the Third Circuit entered an order denying the
Debtor's petition for rehearing. The Third Circuit entered an
order denying LTL's stay motion on March 31, 2023, and, on the dame
day, issued its mandate directing the Bankruptcy Court to dismiss
the 2021 Chapter 11 Case.
The Bankruptcy Court entered an order dismissing the 2021 Case on
April 4, 2023.
Johnson & Johnson on April 4, 2023, announced that its subsidiary
LTL Management LLC (LTL) has re-filed for voluntary Chapter 11
bankruptcy protection (Bankr. D.N.J. Case No. 23-12825) to obtain
approval of a reorganization plan that will equitably and
efficiently resolve all claims arising from cosmetic talc
litigation against the Company and its affiliates in North
America.
In the new filing, J&J said it has agreed to contribute up to a
present value of $8.9 billion, payable over 25 years, to resolve
all the current and future talc claims, which is an increase of
$6.9 billion over the $2 billion previously committed in connection
with LTL's initial bankruptcy filing in October 2021. LTL also has
secured commitments from over 60,000 current claimants to support a
global resolution on these terms.
MAD ENGINE: S&P Downgrades ICR to 'CCC+', Outlook Negative
----------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on U.S.-based
designer, producer, and distributor of licensed, branded, and
private-label apparel and accessories Mad Engine Global LLC to
'CCC+' from 'B'. The outlook is negative.
S&P said, "At the same time, we lowered our issue-level rating on
the company's senior secured debt to 'CCC+' from 'B'. The recovery
rating is unchanged at '4', which reflects our expectation for
average recovery (30%-50%; rounded estimate: 45%) in the event of a
payment default.
"The negative outlook reflects that we could lower the ratings in
the coming quarters if we envision default scenarios such as an
inability to cover its interest and fixed charges or a coverage
breach."
The downgrade reflects the deterioration of Mad Engine's credit
metrics in light of the challenging retail and macroeconomic
environment during the second half of 2022. Though these pressures
have begun to wane, S&P expects leverage and coverage metrics will
remain weak in 2023.
Mad Engine's pro forma leverage at the end of fiscal 2022 doubled
to the low-double-digit area from 5.5x at the end of fiscal 2021.
During the third and fourth quarters of 2022, slowdowns and
challenges in the U.S. retail environment left key retailers with
excess inventory, forcing them to reset inventory by heavily
discounting, pushing out delivery dates, or cancelling orders.
Additionally, cost constraints in cotton, labor, and freight that
began in the fourth quarter of 2021 have stressed profitability,
reducing pro forma adjusted EBITDA margin to approximately 5% from
11% in 2021 and deteriorating EBITDA interest coverage to below 1x.
EBITDA was also lower than S&P's previous pro forma forecast as a
result of Mad Engine taking on additional labor and warehouse
operating costs during the year. Mad Engine shifted from poor
performing third-party logistics vendors in the third quarter of
2022 to higher-cost, insourced warehouses. The transition
subsequently delayed the realization of approximately $10 million
in synergies from its 2021 acquisition of Fortune, originally
assumed to be realized in 2022. Mad Engine has since completed its
warehouse shift from third-party logistics and into company-managed
warehouses in San Diego and Mexico as of the end of 2022, pushing
the full realization of these synergies into 2023. However, the
company's fixed-charge base, particularly debt amortization of
approximately $8 million on its $310 million senior secured term
loan, remains high. Combined with EBITDA interest coverage of below
1x, this could further constrain liquidity and result in the
inability to cover fixed-charge metrics in the near term.
S&P said, "We expect inflationary pressures on labor and energy
will persist through the first half of 2023, though to a far lesser
degree than the peaks in 2022. We expect them to further stabilize
in the second half and into 2024. Mad Engine has also taken
additional steps to reduce its cost base in addition to the natural
reduction in product cost from inflationary pressure relief,
including a material reduction in staff in January 2023. Combined
with the completion of its new warehouse/distribution platforms in
San Diego; Tijuana, Mexico; and Ensenada, Mexico in late 2022, we
expect these initiatives will benefit its selling, general, and
administrative (SG&A) costs as the benefits annualize through 2023,
allowing for some recapture of lost margin in 2022. We forecast
that the continued improvement in cotton and freight, combined with
stricter cost control, will allow leverage to fall to approximately
10x and interest coverage to improve to 1x in 2023, offset by
continued pressure in labor costs. However, such leverage remains
high and the margin the company can recapture in the next year
given these dynamics remains to be seen. Interest coverage remains
tight, with the potential to weaken further if profitability does
not improve. S&P Global Ratings-adjusted debt includes an
additional $12 million of finance leases that Mad Engine took on at
the end of 2022 and the adoption of updated operating lease
accounting standards that resulted in additional lease liabilities
of approximately $33 million in total."
Near-term improvement will continue to revolve around inventory and
cost management as Mad Engine prioritizes improving its working
capital position.
The company has made progress reducing its working capital burden
since retailers began rebalancing inventory in the second half of
2022, with modest free operating cash flow (FOCF) generation of
approximately $5 million compared to our previous expectations of a
deficit. The larger-than-expected roll-off of inventory was
primarily due to Mad Engine granting discounts on open purchase
orders to expedite shipping on-hand wholesale inventory, as well as
discounts to a large customer to ensure full payment on cancelled
orders. Additionally, Mad Engine was promotional in its brands
segment through the holiday season. While these actions decreased
inventory approximately $30 million between the third and fourth
quarters, it remains high at approximately $115 million at
year-end. S&P said, "We expect Mad Engine will continue to focus on
improving its "blanks" inventory position and reduce the overall
weeks-of-supply on-hand through at least the first half of 2023.
The degree of near-term improvement in its working capital position
will depend on the company's ability to execute these initiatives,
particularly as it returns to its just-in-time inventory receipt
model after the easing of supply chain pressures. That should allow
for faster turnover and less reliance on more expensive ocean
freight. Mad Engine has also recently entered into supply chain
financing programs with two of its largest wholesale retailers,
which should allow for a quicker collection cycle, hence our
expectation for positive working capital changes overall in 2023.
However, if it cannot sufficiently decrease this burden over the
year, a resulting FOCF deficit and higher debt burden to fund
operations would lead to an unsustainable capital structure and
liquidity concerns."
Mad Engine's wholesale and brand segments have been sensitive to
weakened consumer discretionary spending, therefore S&P forecasts a
low-single-digit percent revenue decline in 2023, despite some
recovery expected in the second half.
The company's wholesale segment has been particularly vulnerable to
the challenges in the U.S. retail sector from lower demand and
excess inventory. S&P said, "While the landscape has since improved
as retailers have cleared excess inventory over the holidays, we
continue to expect overall wholesale and POD demand to remain soft
in 2023 from lower discretionary spending. This is in contrast to
our previous expectation that the POD segment would be the leading
growth driver given its more favorable demand trends in the past.
Though the segment has continued double-digit percentage growth for
the full year 2022, growth trends began to reverse in the fourth
quarter as consumer demand fell. We now expect POD revenue will
decline in the high-single-digit percentages in the next year and
net revenue approximately 4% in 2023. These declines are somewhat
offset by volume growth in the smaller brands segment from the
introduction of new products. We also expect Mad Engine will
discount as necessary through early 2023 to offload excess
inventory from 2022, which may hamper expectations for growth
beyond our base-case expectations."
The negative outlook reflects that S&P could lower the ratings in
the coming quarters if it envisions default scenarios as an
inability to cover interest and fixed charges or a covenant
breach.
S&P could lower its rating on Mad Engine if it believes the company
cannot meet its debt and interest coverage requirements in the next
12 months. This could occur if:
-- It cannot sufficiently reverse its working capital burden,
leading to FOCF deficits and the use of its ABL to fund operations.
This would further strain liquidity and potentially cause a
liquidity shortfall or covenant violation if tested; or
-- The company cannot offset worsening cost pressures or realize
synergies as expected against a worsening macroeconomic backdrop
with weaker consumer demand, significantly lowering profitability
and leading to EBITDA coverage of interest sustained below 1x or
inadequate coverage of fixed charges.
S&P could take a positive rating action if Mad Engine sustains FOCF
generation and improves EBITDA interest coverage above 1.5x on a
sustained basis, alleviating our concerns over fixed-charge
coverage. This could occur if:
-- It successfully clears its excess inventory, improves its FOCF,
and reduces its debt burden, specifically outstanding revolver
borrowings;
-- Demand improves as the company maintains tighter cost control,
leading to higher EBITDA than anticipated from greater sales and
lower discounting.
ESG credit indicators: E-2, S-2, G-3
S&P said, "Governance factors are a moderately negative
consideration in our credit rating analysis of Mad Engine. Our
assessment of the company's financial risk profile as highly
leveraged reflects corporate decision-making that prioritizes the
interests of controlling owners, in line with our view of most
rated entities owned by private-equity sponsors. Our assessment
also reflects the generally finite holding periods and a focus on
maximizing shareholder returns."
MALLINCKRODT PLC: Wants Out of Manhattan Project Waste Lawsuit
--------------------------------------------------------------
Rick Archer of Law360 reports that drugmaker Mallinckrodt PLC
Tuesday, April 11, 2023, asked a Delaware bankruptcy judge to rule
that the Chapter 11 plan he approved for the company last year
releases it from a lawsuit over nuclear waste it produced 80 years
ago as a contractor on the Manhattan Project.
The Reorganized Debtors filed documents requesting that the Court
enforce the Plan and Confirmation Order by ordering that plaintiffs
("Plaintiffs") in the litigation captioned Banks et al. v. Cotter
Corp. et al. v. Mallinckrodt LLC et al., No. 20-CV-1227 (E.D. Mo.)
("Banks" or "Banks Litigation") (cited herein as "D.C. ECF No. __")
withdraw their Motion for Leave to File Third Amended Complaint and
Supplemental Class Action Complaint (the "Motion to Amend") to the
extent Plaintiffs seek to add Mallinckrodt LLC ("Mallinckrodt") as
a defendant.
Banks is a prepetition litigation concerning disposal of
radioactive material related to the Manhattan Project. Until
recently, Mallinckrodt's only role in that litigation has been as a
third-party defendant on a contribution claim by defendant Cotter
Corporation. While the Banks Plaintiffs have always known about
Mallinckrodt's association with that radioactive material,
Plaintiffs had previously disavowed pursuit of any claims against
Mallinckrodt. Now that the strategic benefit of that disavowal
(attempting to stay out of federal court) is gone, they want to
disavow their disavowal and sue Mallinckrodt.
To evade the discharge, Plaintiffs invoke a bespoke,
settlement-based Confirmation Order provision that permitted the
ride-through of certain liabilities relating to the aforementioned
radioactive material that were "previously asserted in writing."
But how do Plaintiffs invoke this carve-out despite never having
asserted any claim in writing (and instead having stated in writing
that they asserted no such claims)? Plaintiffs theorize that
because the Confirmation Order does not specify who must have
asserted the liability in writing, they can rely on the written
assertions
of others.
The Reorganized Debtors have repeatedly warned Plaintiffs that this
reading of the Confirmation Order is untenable and in bad faith,
and that their late-found claims are discharged and enjoined.
Plaintiffs have stated they will not change course. Accordingly,
the Reorganized Debtors reluctantly request the Court’s
intervention, and seek to recover their fees and costs in so
doing.
About Mallinckrodt PLC
Mallinckrodt -- http://www.mallinckrodt.com/-- is a global
business consisting of multiple wholly-owned subsidiaries that
develop, manufacture, market and distribute specialty
pharmaceutical products and therapies. The company's Specialty
Brands reportable segment's areas of focus include autoimmune and
rare diseases in specialty areas like neurology, rheumatology,
nephrology, pulmonology and ophthalmology; immunotherapy and
neonatal respiratory critical care therapies; analgesics; and
gastrointestinal products. Its Specialty Generics reportable
segment includes specialty generic drugs and active pharmaceutical
ingredients.
On Oct. 12, 2020, Mallinckrodt plc and certain of its affiliates
sought Chapter 11 protection in Delaware (Bankr. D. Del. Lead Case
No. 20-12522) to seek approval of a restructuring that would reduce
total debt by $1.3 billion and resolve opioid-related claims
against them.
Mallinckrodt plc disclosed $9,584,626,122 in assets and
$8,647,811,427 in liabilities as of Sept. 25, 2020.
Judge John T. Dorsey oversees the cases.
The Debtors tapped Latham & Watkins, LLP and Richards, Layton &
Finger, P.A. as their bankruptcy counsel; Arthur Cox and Wachtell,
Lipton, Rosen & Katz as corporate and finance counsel; Ropes &
Gray, LLP as litigation counsel; Torys, LLP as CCAA counsel;
Guggenheim Securities, LLC as investment banker; and AlixPartners,
LLP as restructuring advisor. Prime Clerk, LLC is the claims
agent.
The official committee of unsecured creditors retained Cooley, LLP,
as its legal counsel; Robinson & Cole, LLP as co-counsel; and
Dundon Advisers, LLC as financial advisor.
On Oct. 27, 2020, the U.S. Trustee for Region 3 appointed an
official committee of opioid-related claimants. The OCC tapped
Akin Gump Strauss Hauer & Feld, LLP as its lead counsel; Cole
Schotz as Delaware co-counsel; Province, Inc. as financial advisor;
and Jefferies, LLC as investment banker.
* * *
Mallinckrodt plc on June 16, 2022, announced that it has
successfully completed its reorganization process, emerged from
Chapter 11 and completed the Irish Examinership proceedings.
Implementing the Plan and the Scheme strengthens the Company's
balance sheet, reduces its total debt by approximately $1.3 billion
and enables it to move forward with more than $250 million in cash
and cash equivalents on hand. The Plan and Scheme include key
legal settlements that resolve opioid claims brought against the
Company and litigation matters involving Acthar Gel, among other
claims, and provides for significant equitization of the Company's
guaranteed unsecured notes.
MANHATTAN SCIENTIFICS: Incurs $2.7 Million Net Loss in 2022
-----------------------------------------------------------
Manhattan Scientifics, Inc. has filed with the Securities and
Exchange Commission its Annual Report on Form 10-K disclosing
a net loss of $2.73 million on $50,000 of revenue for the year
ended Dec. 31, 2022, compared to a net loss of $3.64 million on
$50,000 of revenue for the year ended Dec. 31, 2021.
As of Dec. 31, 2022, the Company had $1.03 million in total assets,
$1.67 million in total liabilities, $1.06 million in series D
convertible preferred mandatory redeemable shares, and a total
stockholders' deficit of $1.70 million.
Draper, UT-based Sadler, Gibb & Associates, LLC, the Company's
auditor since 2020, issued a "going concern" qualification in its
report dated April 13, 2023, citing that the Company has an
accumulated deficit, negative cash flows form operations, and
negative working capital, which raises substantial doubt about its
ability to continue as a going concern.
A full-text copy of the Form 10-K is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1099132/000147793223002486/mhtx_10k.htm
About Manhattan Scientifics
Headquartered in New York, Manhattan Scientifics, Inc., was
established on July 31, 1992 and has one operating wholly-owned
subsidiary: Metallicum, Inc. The Company also holds a 5%,
noncontrolling interest in Imagion Biosystems, Inc. (f/k/a Senior
Scientific LLC). Manhattan Scientifics is focused on technology
transfer and commercialization of transformative technologies.
The Company operates as a technology incubator that seeks to
acquire, develop and commercialize life-enhancing technologies in
various fields.
MEDICAL CONSTRUCTION: Case Summary & Seven Unsecured Creditors
--------------------------------------------------------------
Debtor: Medical Construction Industrial Training Center, LLC
DBA MCITC
207 Bogden Blvd.
Millville, NJ 08332
Chapter 11 Petition Date: April 19, 2023
Court: United States Bankruptcy Court
District of New Jersey
Case No.: 23-13260
Debtor's Counsel: Ellen M. McDowell, Esq.
MCDOWELL LAW, PC
46 West Main St.
Maple Shade, NJ 08052
Tel: 856-482-5544
Fax: 856-482-5511
Email: emcdowell@mcdowelllegal.com
Total Assets: $250,705
Total Liabilities: $1,585,269
The petition was signed by Carol Johnston as owner/director.
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/6LGA73Y/Medical_Construction_Industrial__njbke-23-13260__0001.0.pdf?mcid=tGE4TAMA
MONROE GARDENS: May 31 Plan Confirmation Hearing Set
----------------------------------------------------
Judge B. McKay Mignault has entered an order within which May 31,
2023 at the Robert C. Byrd Courthouse, 300 Virginia Street East,
Charleston, WV 25301, Bankruptcy Courtroom 6200 is the hearing to
consider and act upon confirmation of the Chapter 11 Plan of Monroe
Gardens, LLC.
Judge Mignault further ordered that May 17, 2023 is fixed as the
last day to file written objection to confirmation of the Chapter
11 Plan, and file acceptances or rejections of the Chapter 11 Plan.
A copy of the order dated April 17, 2023 is available at
https://bit.ly/41DuTh1 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.
NEWS CORPORATION: Moody's Alters Outlook on 'Ba1' CFR to Stable
---------------------------------------------------------------
Moody's Investors Service affirmed all credit ratings for News
Corporation ("News Corp" or "the Company") including the Ba1
Corporate Family Rating, Ba1-PD Probability of Default Rating, and
Ba1 senior unsecured notes. The speculative grade liquidity rating
is unchanged at SGL-1. The outlook was changed to stable from
positive.
The change in the outlook to stable reflects softening financial
performance across most of the company's segments over the last 6
months which has led to higher-than-expected financial leverage and
Moody's expectation for a further decline in EBITDA in the back
half of fiscal 2023 amid macro headwinds which will constrain free
cash flow to near $260 million (Moody's normalized basis). Moody's
believes there is also rising governance risk with the potential
for activists to agitate for shareholder friendly transactions to
unlock equity value and the company has expressed a willingness to
consider large M&A transactions which could involve significant
debt financing. Management's lack of a public commitment to public
leverage targets provides maximum flexibility for these types of
transactions.
Affirmations:
Issuer: News Corporation
Corporate Family Rating, Affirmed Ba1
Probability of Default Rating, Affirmed Ba1-PD
Senior Unsecured Regular Bond/Debenture, Affirmed Ba1 (LGD4)
Outlook Actions:
Issuer: News Corporation
Outlook, Changed To Stable From Positive
RATINGS RATIONALE
News Corp's Ba1 CFR is supported by its large scale (near $9.5
billion in revenue, Moody's normalized LTM at fiscal quarter end
Q2), strong geographic diversification (across 3 continents) and a
good balance of revenue and EBITDA across 5 business distinct
segments including Dow Jones (DJ), Digital Real Estate Services
(DRES), Subscription Video Services (SVS), News Media (NM) and Book
Publishing (BP). In these segments, the Company owns and operates a
portfolio of some of the world's leading and very valuable brands
including the Wall Street Journal, HarperCollins, and
Realtor.com(R). Moody's believes the Company is committed to
transforming the business mix, with a patient and disciplined
growth strategy, investing organically and through M&A to grow its
digital and recurring business models, while selling non-performing
and non-core assets, and carefully managing cost structures.
The credit profile is constrained by a short history of strong free
cash flows, due in part to EBITDA margins in the mid-teens percent
range. The Company also has multiple segments exposed to
unfavorable secular trends in media. The Company's subscription
video business, Foxtel, is losing its broadcast subscribers at a
high rate and some other segments (mostly NM) are exposed to the
advertising market which is under pressure. The Company's financial
policy also tolerates debt-funded M&A which has periodically
increased leverage and permits material shareholder distributions
in the form of both share repurchases and dividends which are
material calls on cash flows.
News Corp has very good liquidity (SGL-1). Strength is supported by
significant internal sources of cash (including $1.3 billion of
cash and positive operating cash flow), a large $750 million
undrawn revolving credit facility (excluding subsidiary
facilities), and substantial alternate liquidity with a fully
unsecured capital structure.
The unsecured notes are rated Ba1 (LGD4), equal to the CFR
reflecting the preponderance of senior unsecured debt at the
parent, with a smaller proportion of senior obligations including
trade payables, lease rejection claims and unfunded pension
obligations at the operating subsidiaries. The instrument rating
reflects the probability of default of the Company, as reflected in
the Ba1-PD Probability of Default Rating, and an average expected
family recovery rate of 50%. The revolving credit facility at the
parent company is unrated, as is the debt at News Corp subsidiaries
which are not included in claim structure as they are non-recourse
to News Corp.
The stable outlook reflects Moody's expectation that debt, revenue,
and EBITDA will average approximately $3.8 billion, $9.5 billion,
and $1.3-1.4 billion, respectively, over the next 12-18 months.
Moody's project EBITDA margins in the mid-teens percent range,
producing free cash flows of $260-$430 million, after capex
(averaging 5%-6% of revenue), borrowing costs (averaging near
4.7%), and dividends (near $180 million). Moody's expects a portion
of free cash flow to be used for share repurchases. Absent material
debt-financed transactions, Moody's expects leverage to be high 2x,
and free cash flow to debt to rise above 10%.
Note: all figures are Moody's adjusted, and normalized, over the
next 12-18 months unless otherwise noted. Moody's material
adjustments include treating lease obligations and unfunded pension
obligations as debt, as well as adjustments to proportionally
deconsolidate non-controlling interests, including those at Foxtel
and REA Group.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Factors that could lead to an upgrade:
Maintenance of conservative financial policies targets and very
good liquidity
Sustained growth in digital assets, supported by profitable
execution of transformation strategy and a predictable mix of
valuable assets
Track record of strong free cash flow generation, with free cash
flow to debt (Moody's adjusted and normalized) of at least 10%
expected
Factors that could lead to a downgrade:
-- Gross Debt/EBITDA (Moody's adjusted and normalized) sustained
above 3.0x, or
-- FCF/gross debt (Moody's adjusted and normalized) sustained
below 5% percent
Moody's could also consider a negative rating action if the
financial strategy or policy turned more aggressive, operating
performance weakened, or there were unfavorable and material
changes in scale, diversity or the business model.
The principal methodology used in these ratings was Media published
in June 2021.
News Corporation (Nasdaq: NWS, NWSA; ASX: NWS, NWSLV) is a global,
diversified media and information services company focused on
creating and distributing authoritative and engaging content and
other products and services. The company comprises businesses
across a range of media including: Dow Jones, digital real estate
services, subscription video services in Australia, news media and
book publishing. Headquartered in New York, News Corp operates
primarily in the United States, Australia, and the United Kingdom,
and its content and other products and services are distributed and
consumed worldwide. Revenues (as reported) were approximately $10.2
billion for the last twelve months (LTM) ended December 31, 2022.
NORTH JAX: Amends IRS Secured Claim; Confirmation Hearing May 17
----------------------------------------------------------------
North Jax Concrete and Construction, LLC, submitted an Amended
Disclosure Statement describing Amended Chapter 11 Plan of
Reorganization dated April 17, 2023.
The Debtor sold its real property which significantly reduced the
amount owed to the Internal Revenue Service. In addition, the
Debtor has stabilized its business operations and has made
consistent adequate protection payments to the IRS.
This Amended Plan of Reorganization proposes to pay creditors of
the Debtor from cash flow from the normal operations of the
Debtor's business.
Class 1 consists of the Secured Claim of the Internal Revenue
Service: $627,321.86 (remaining amount of Allowed Secured Claim as
of April 1, 2023). The secured claim of the Internal Revenue
Service ("IRS") has been paid in part from proceeds of the sale of
the Debtor's real property. To date, the Internal Revenue Service
has received $446,234.68 from the sale proceeds of the Debtor's
real property and adequate protection payments in the amount of
$32,000.00. The secured claim will continue to be paid in monthly
installments of $5,000.00 with 3% interest until May 15, 2027.
Any remaining balance will be paid in one lump sum balloon payment
on or before June 15, 2027. In the event the IRS applies or sets
off any employee retention credit(s) money to the amount owed by
the Debtor, it shall be applied to the balance of the Allowed
Secured Claim such that any setoff shall reduce the balloon payment
due at the end of the Plan term. In the event that any amendments
to tax returns reduces the balance owed to the IRS, then that shall
also reduce the balloon payment due at the end of the Plan term. In
the event additional payments are made over the required monthly
installment amount, any such payments shall be applied to the
principal balance of the remaining Allowed Secured Claim.
The Amended Disclosure Statement does not alter the proposed
treatment for unsecured creditors and the equity holder:
* Class 4 consists of General Unsecured Claims. The general
unsecured claims shall receive a total of $20,000.00 distributed
pro rata in sixteen quarterly payments. The first payment will be
due on or before December 31, 2023, and will continue to become due
on or before the last day of each calendar quarter thereafter, with
the last payment being due on or before September 30, 2027.
* Equity interest holder John C. Holton III will waive
distributions under the Plan as additional new value consideration
to retain his equity interest.
Debtor shall fund its Plan from the continued operations of its
business. If necessary, the Debtor may elect to liquidate certain
personal property to fund this Plan. In addition, John C. Holton
III may elect, at his sole discretion, to sell his homestead to
ensure feasibility of this Plan.
The hearing at which the Court will determine whether approve this
Disclosure Statement on a final basis and confirm the Plan has been
scheduled for May 17, 2023 at 1:00 PM in Courtroom 4C, 4th Floor,
Bryan Simpson United States Courthouse, 300 North Hogan Street,
Jacksonville, FL 32202.
The Bankruptcy Court has set May 10, 2023, as the last day by which
ballots accepting or rejecting the Plan must be received.
Objections to Disclosure Statement or the Plan filed on April 17,
2023 must be filed no later than seven days before the date of the
hearing on confirmation.
A full-text copy of the Amended Disclosure Statement dated April
17, 2023 is available at https://bit.ly/3N0w0U1 from
PacerMonitor.com at no charge.
Counsel for the Debtor:
Byron Wright III, Esq.
Robert C. Bruner, Esq.
Bruner Wright, PA
2810 Remington Green Circle
Tallahassee, FL 32308
Telephone: (850) 385-0342
Facsimile: (850) 270-2441
Email: twright@brunerwright.com
rbruner@brunerwright.com
About North Jax Concrete and Construction
North Jax Concrete and Construction, LLC, a company in
Jacksonville, Fla., sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 22-01206) on June 15,
2022. In the petition signed by its managing member, John C. Holton
III, the Debtor listed $1 million to $10 million in both assets and
liabilities.
Judge Jacob A. Brown oversees the case.
The Debtor tapped Byron Wright, III, Esq., and Robert C. Bruner,
Esq., at Bruner Wright P.A. as bankruptcy attorneys; Georgia Evans
of Professional Management Systems, Inc. as accountant; and Derek
Denard of Leyton USA, Inc. as tax credit consultant.
OCEAN POWER: Deploys Next Generation Wave Energy Converter Buoy
---------------------------------------------------------------
Ocean Power Technologies, Inc. announced the successful first ocean
test of its next-generation increased power wave energy converter
buoy, the Mass-On-Spring-Wave-Energy-Converter (MOSWEC) prototype.
OPT has reported the operational sized buoy, deployed offshore of
New Jersey, has been performing as expected and has already endured
storm conditions at sea.
Building on the success of its previous wave energy converter, the
PB3, the MOSWEC prototype represents a significant improvement in
multiple aspects. The innovative design enables modularity and
commonality for the next generation buoy platform, making it more
efficient in terms of transportation, serviceability, and
maintainability. Additionally, the MOSWEC buoy will be more
cost-effective for customers.
One of the key advancements of the MOSWEC is its fully sealed
design, eliminating all externally moving parts, which further
increases reliability and lowers maintenance costs. This
innovation ensures that the energy converter operates efficiently
and effectively in marine environments and supports all of OPT's
existing solutions, and expected future integration with vehicles,
such as OPT's WAM-V. This opens new possibilities for renewable
energy generation, ocean security, and other applications in marine
environments.
Furthermore, the MOSWEC prototype allows for the integration of
wind and solar energy generation, providing increased and
diversified energy output compared to the PB3. This feature,
combined with the buoy's performance in storm conditions, makes the
MOSWEC prototype a more versatile and sustainable solution for
powering various applications.
"We are thrilled to announce the deployment of our operational size
MOSWEC prototype, which represents a significant advancement in
wave energy conversion technology," said Philipp Stratmann,
president, and chief executive officer of OPT. "With its smaller
size, lower price, sealed design, and increased energy generation
capabilities, the MOSWEC prototype is a major step forward in our
mission to provide innovative and sustainable marine energy
solutions."
OPT holds multiple patents related to MOSWEC technology, which
generates power from the relative motion caused by ocean waves.
The Company's commitment to advancing clean and reliable ocean
energy solutions aligns with the nation's blue economy goals and
supports the transition to a more sustainable future.
About Ocean Power Technologies
Headquartered in Monroe Township, New Jersey, Ocean Power
Technologies, Inc. -- http://www.oceanpowertechnologies.com--
provides intelligent maritime solutions and services that enable
safer, cleaner, and more productive ocean operations for the
defense and security, oil and gas, science and research, and
offshore wind markets. Its PowerBuoy platforms provide clean and
reliable electric power and real-time data communications for
remote maritime and subsea applications. The Company also provides
WAM-V autonomous surface vessels (ASV) and marine robotics services
through its wholly owned subsidiary Marine Advanced Robotics and
strategic consulting services including simulation engineering,
software engineering, concept design and motion analysis through
its wholly owned subsidiary 3Dent.
Ocean Power reported a net loss of $18.87 million for the 12 months
ended April 30, 2022, a net loss of $14.76 million for the 12
months ended April 30, 2021, a net loss of $10.35 million for the
12 months ended April 30, 2020, and a net loss of $12.25 million
for the 12 months ended April 30, 2019. As of Jan. 31, 2023, the
Company had $59.04 million in total assets, $6.10 million in total
liabilities, and $52.94 million in total shareholders' equity.
OMAHA BEACH 3017: Seeks to Hire Hasbani & Light as Special Counsel
------------------------------------------------------------------
Omaha Beach 3017, LLC (DE) seeks approval from the U.S. Bankruptcy
Court for the Southern District of Florida to hire Hasbani & Light,
P.C. as its special counsel.
The firm will prepare motions, pleadings, orders, applications,
adversary proceedings, and other legal documents necessary in the
administration of the adversary case.
Shauna M. DeLuca, Esq., attorney at Hasbani & Light, assured the
court that neither I nor the firm represent any interest adverse to
the debtor, or the estate, and are disinterested persons as
required by 11 U.S.C. Sec. 327(a).
The firm can be reached through:
Shauna M. DeLuca, Esq.
Hasbani & Light, P.C.
450 7th Ave Suite 1408
New York, NY 10123
Phone: +1 212-643-6677
Email: sdeluca@hasbanilight.com
About Omaha Beach 3017
Omaha Beach 3017, LLC (DE) sought protection for relief under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No.
23-10666) on Jan. 27, 2023, listing $100,001 to $500,000 in assets
and $500,001 to $1 million in liabilities.
Judge Laurel M Isicoff presides over the case.
Joel M. Aresty, Esq. at Joel M. Aresty, P.A. represents the Debtor
as counsel.
PEKING DUCK: Case Summary & Two Unsecured Creditors
---------------------------------------------------
Debtor: Peking Duck USA, Inc.
d/b/a Lao Sze Chuan Downtown
520 N Michigan, #420
Chicago, IL 60611
Chapter 11 Petition Date: April 19, 2023
Court: United States Bankruptcy Court
Northern District of Illinois
Case No.: 23-05135
Judge: Hon. Jacqueline P. Cox
Debtor's Counsel: Konstantine Sparagis, Esq.
LAW OFFICES OF KONSTANTINE SPARAGIS
900 W. Jackson Blvd.
Ste. 4E
Chicago, IL 60607
Tel: 312-753-6956
Fax: 866-333-1840
Email: gus@atbankruptcy.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Yujia Hu as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's two unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/NCI2EWY/Peking_Duck_USA_Inc__ilnbke-23-05135__0001.0.pdf?mcid=tGE4TAMA
PIEDMONT DRAGWAY: Taps Robert Core, CPA as Accountant
-----------------------------------------------------
Piedmont Dragway of NC, LLC seeks approval from the U.S. Bankruptcy
Court for the Eastern District of North Carolina to employ Robert
Core, an accountant practicing in Greensboro, N.C.
The Debtor requires an accountant to assist with the preparation of
its tax returns and tax reports and perform other accounting
services.
Mr. Core will be paid at the rate of $200 per hour.
As disclosed in court filings, Mr. Core is a "disinterested person"
within the meaning of Section 101(14) of the Bankruptcy Code.
Mr. Core can be reached at:
Robert Core, CPA
1009 W Market St.
Greensboro, NC 27401
Tel: (336) 274-4412
About Piedmont Dragway of NC
Piedmont Dragway of NC, LLC is a dragway that hosts drag racing and
dirt drag racing competitions and offers concessions. On Jan. 12,
2023, WFO Racing, LLC merged with Piedmont. Piedmont is the
surviving company after the merger.
Piedmont sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. E.D.N.C. Case No. 23-00422) on Feb. 15, 2023, with up
to $10 million in both assets and liabilities. Ron Senecal, member
manager, signed the petition.
Judge Joseph N. Callaway oversees the case.
The Debtor tapped William P. Janvier, Esq., at Stevens Martin
Vaughn and Tadych, PLLC as bankruptcy counsel and Robert Core, CPA
as accountant.
PILL CLUB: Case Summary & 30 Largest Unsecured Creditors
--------------------------------------------------------
Lead Debtor: The Pill Club Pharmacy Holdings, LLC
411 Borel Ave., Suite 100
San Mateo, CA 94402
Business Description: The Pill Club is a digital healthcare
platform on a mission to empower women and
people who menstruate to lead their
healthiest lives. It combines telemedicine
and direct-to-consumer pharmacy.
Chapter 11 Petition Date: April 18, 2023
Court: United States Bankruptcy Court
Northern District of Texas
Eight affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
The Pill Club Pharmacy Holdings, LLC (Lead Case) 23-41090
Hey Favor, Inc. 23-41091
MobiMeds, Inc. 23-41092
MedPro Pharmacy, LLC 23-41093
FVR Medical Group, Inc. 23-41095
FVR Medical Group of Texas, PA 23-41096
FVR Medical Group of Kansas, PA 23-41098
FVR Medical Group of New Jersey, PC 23-41099
Judge: Hon. Edward L. Morris
Debtors'
General
Bankruptcy
Counsel: Katherine A. Preston, Esq.
WINSTON & STRAWN LLP
800 Capitol St
Suite 2400
Houston, TX 77002
Tel: (713) 651-2699
Email: KPreston@winston.com
Debtors'
Financial
Advisor: ACCORDION PARTNERS, LLC
Debtors'
Claims &
Noticing
Agent: BMC GROUP, INC.
Lead Debtor's
Estimated Assets: $0 to $50,000
Lead Debtor's
Estimated Liabilities: $10 million to $50 million
The petitions were signed by Elizabeth Meyerdirk as chief executive
officer.
A full-text copy of the Lead Debtor's petition is available for
free at PacerMonitor.com at:
https://www.pacermonitor.com/view/H2EKUTI/The_Pill_Club_Pharmacy_Holdings__txnbke-23-41090__0001.0.pdf?mcid=tGE4TAMA
Consolidated List of Debtors' 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Veru, Inc. Trade Debt $3,913,816
2916 North Miami
Ave Suite 1000
Miami, FL 33127
2. Latham & Watkins LLP Legal Services $1,614,120
12670 High Bluff Dr.
San Diego, CA 92130
Attn: Amy Hargreaves
3. Google LLC Trade Debt $899,994
1600 Amphitheatre Parkway
Mountain View, CA 94043
4. Morrison & Foerster LLP Legal Services $842,203
12531 High Bluff Drive
Suite 100
San Diego, CA 92130
Attn: Steve Rowles
5. Mayne Pharma Inc. Trade Debt $626,896
Kimberly Parker EVP,
General Counsel
3301 Benson Drive
Suite 401 Raleigh, NC 27609
6. DHL Trade Debt $381,964
1210 S. Pine Island Road
4th Floor
Plantation, FL 33324
7. Xiromed LLC Trade Debt $263,541
180 Park Ave #101
Florham Park, NJ 07932
8. McKesson Specialty Health Trade Debt $234,000
10101 Woodloch Forest
The Woodlands, TX 77380
9. Socure Inc. Trade Debt $140,752
885 Tahoe Blvd. Suite 111
Incline Village, NV 89451
10. Twilio, Inc. Trade Debt $125,374
10101 Spear St
5th Floor
San Francisco, CA 94105
Attn: Legal
11. Mylan Pharmaceuticals Inc. Trade Debt $121,800
Robert Coury Global Center
1000 Myland Blvd.
Canonsburg, PA 15317
12. Elation Health, Inc. Trade Debt $105,000
530 Divisadero St, #872
San Francisco, CA 94117
13. Roots Automation Inc. Trade Debt $98,000
200 Broadway
Floor 5
New York, NY 10038
14. BEP Borel Investors LLC Trade Debt $89,039
411 Borel Avenue
San Mateo, CA 94402
15. Meta Platforms, Inc. Trade Debt $88,301
1601 Willow Road
Menlo Park, CA 94025
16. nOps Trade Debt $82,550
655 Montgomery Street
Fl 6
San Francisco, CA 94111
17. AmerisourceBergen Trade Debt $79,602
1 West First Avenue
Conshohocken, PA 19428
18. Anda, Inc. Trade Debt $74,676
2915 Weston Road
Weston, FL 33331
19. Amplitude, Inc. Trade Debt $73,020
201 3rd Street, Suite 200
San Francisco, CA 94103
20. Principal Builders, Inc. Trade Debt $61,466
616 Minna Street
San Francisco, CA 94103
21. Ropes & Gray LLP Trade Debt $52,642
800 Bolyston Street
Boston, MA 02199
Attn: Christina Bergeron
22. Postclick Trade Debt $49,992
303 2nd Street Suite 901
San Francisco, CA 94107
23. CCI-Buckingham, LP Trade Debt $49,878
720 Brazos Street, Suite 900
Autstin, TX 78701
24. Glenmark Pharmaceuticals Inc. Trade Debt $46,772
750 Corporate Drive
Mahwah, NJ 07430
25. Presidio Trust Trade Debt $41,551
1750 Lincoln Blvd.
San Francisco, CA 94129
26. LinkedIn Corporation Trade Debt $36,019
100 W Maude Ave
Sunnyvale, CA 94085
27. Flatworld Solutions Inc. Trade Debt $36,000
116 Village Blvd.
Princeton, NJ 08540
28. Salesforce, Inc. Trade Debt $32,500
415 Mission St.
San Francisco, CA 94105
29. Right Side Up, LLC Trade Debt $30,000
4521 Eagle Feather Dr
Austin, TX 78735
30. Quarles & Brady LLP Trade Debt $28,507
2 N Central Ave #3
Phoenix, AZ 85004
Attn: Roger Morris
PURDUE PHARMA: Loses Case in Stopping Generic OxyContin
-------------------------------------------------------
Andrew Karpan of Law360 reports that the bankrupt Purdue Pharma
lost its legal effort to use patent laws to block an Indian
drugmaker from launching a generic version of OxyContin when a
federal judge in Delaware decided on Tuesday, April 11, 2023, that
some of the patents covering the drug's newer "abuse-deterrent"
features could be found in decade-old academic articles and patent
paperwork.
About Purdue Pharma LP
Purdue Pharma L.P. and its subsidiaries --
http://www.purduepharma.com/-- develop and provide prescription
medicines and consumer products that meet the evolving needs of
healthcare professionals, patients, consumers and caregivers.
Purdue's subsidiaries include Adlon Therapeutics L.P., focused on
treatment for Attention-Deficit/Hyperactivity Disorder (ADHD) and
related disorders; Avrio Health L.P., a consumer health products
company that champions an improved quality of life for people in
the United States through the reimagining of innovative product
solutions; Imbrium Therapeutics L.P., established to further
advance the emerging portfolio and develop the pipeline in the
areas of CNS, non-opioid pain medicines, and select oncology
through internal research, strategic collaborations and
partnerships; and Greenfield Bioventures L.P., an investment
vehicle focused on value-inflection in early stages of clinical
development.
Opioid makers in the U.S. are facing pressure from a crackdown on
the addictive drug in the wake of the opioid crisis and as state
attorneys general file lawsuits against manufacturers. More than
2,000 states, counties, municipalities and Native American
governments have sued Purdue Pharma and other pharmaceutical
companies for their role in the opioid crisis in the U.S., which
has contributed to the more than 700,000 drug overdose deaths in
the U.S. since 1999.
OxyContin, Purdue Pharma's most prominent pain medication, has been
the target of over 2,600 civil actions pending in various state and
federal courts and other fora across the United States and its
territories.
On Sept. 15 and 16, 2019, Purdue Pharma L.P. and 23 affiliated
debtors each filed a voluntary petition for relief under Chapter 11
of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No.
19-23649), after reaching terms of a preliminary agreement for
settling the massive opioid litigation. The Debtors' consolidated
balance sheet as of Aug. 31, 2019, showed $1.972 billion in assets
and $562 million in liabilities.
U.S. Bankruptcy Judge Robert Drain oversees the cases.
The Debtors tapped Davis Polk & Wardwell, LLP and Dechert, LLP as
legal counsels; PJT Partners as investment banker; AlixPartners as
financial advisor; and Grant Thornton, LLP as tax structuring
consultant. Prime Clerk, LLC, is the claims agent.
Akin Gump Strauss Hauer & Feld LLP and Bayard, P.A., represent the
official committee of unsecured creditors appointed in the Debtors'
bankruptcy cases.
David M. Klauder, Esq., is the fee examiner appointed in the
Debtors' cases. The fee examiner is represented by Bielli &
Klauder, LLC.
* * *
U.S. Bankruptcy Judge Robert Drain in early September 2021 approved
a plan to turn Purdue into a new company (Knoa Pharma LLC) no
longer owned by members of the Sackler family, with its profits
going to fight the opioid epidemic. The Sackler family agreed to
pay $4.3 billion over nine years to the states and private
plaintiffs and in exchange for a lifetime legal immunity. The deal
resolves some 3,000 lawsuits filed by state and local governments,
Native American tribes, unions, hospitals and others who claimed
the company's marketing of prescription opioids helped spark and
continue an overdose epidemic.
Separate appeals to approval of the Plan have already been filed by
the U.S. Bankruptcy Trustee, California, Connecticut, the District
of Columbia, Maryland, Rhode Island and Washington state, plus some
Canadian local governments and other Canadian entities.
In early March 2022, Purdue Pharma reached a nationwide settlement
over its role in the opioid crisis, with the Sackler family members
boosting their cash contribution to as much as $6 billion. The
settlement was hammered out with attorneys general from the eight
states -- California, Connecticut, Delaware, Maryland, Oregon,
Rhode Island, Vermont and Washington -- and D.C. who had opposed
the previous settlement.
R.P. RUIZ: Amends Unsecured Claims Pay; Plan Hearing June 14
------------------------------------------------------------
R.P. Ruiz Corporation, Inc., submitted a First Amended Disclosure
Statement describing First Amended Chapter 11 Plan dated April 17,
2023.
During the case, the Debtor's financial performance has been good.
The Debtor has had positive net income during the case. As of
February 10, 2023, the Debtor had signed contracts for work
totaling some $244,025.00. Work in progress has remained steady.
The Debtor regularly bids for work and is careful to ensure that
its bids have appropriate margins.
The Debtor will need to pay $61,803 in administrative claims on the
Effective Date of the Plan unless a claimant has agreed to
different treatment or the Court has not ruled on the claim. The
Debtor will have the necessary monies on hand on the Effective Date
from operations. The Debtor will not close the case prior to
completion of payments to professionals. The Debtor will pay
administrative claims owed from money on hand plus new value monies
estimated to be $100,000.
Class 5 General unsecured claims total $6,242,711. Reconciled
amount scheduled and claims filed is $7,984,317. Creditors will be
paid $2,500 monthly and the total payout is $137,250. The failure
to pay the stated payout percentage for any reason shall not
constitute a default. The Debtor is paying a stated amount of money
not a specific percentage. Often amended claims assert higher
amounts, secured claims can be rendered unsecured and rejection or
lessor claims may increase the claim amounts of this class.
For any unsecured creditor whose claim includes a claim for
attorney' fees and costs. The Bankruptcy Court must approve any
claim for attorneys' or costs and/or any other charges other than
principal and interest, incurred through the Effective Date and it
must approve the reasonableness of such fees and/or any other
charges with the motion seeking approval filed no later than 60
days following entry of an order confirming this Plan. Failure to
seek such review shall constitute a waiver of all such fees and or
other charges.
Diversified Utility Services, Inc. ("DUSI") asserts that its claim
amount is not $2,300,000 but is $3,463,690.84. If DUSI files an
amended claim that is sustained at the higher figure, then
unsecured creditors will be paid 3.5% based on scheduled claims,
1.8% based on total claims filed, or 1.5% based on reconciled
claims. If the claim at the higher figure is overruled, then
unsecured creditors will be paid as follows: 1.8% of reconciled
claims, 3.5% of total unsecured claims, or 2.2% of total claims
filed.
The Plan will be funded by the Debtor's business operation. The
Debtor anticipates having monies of $7,000 on hand at the Plan's
Effective Date from ongoing operations and $100,000 from a new
value infusion from Richard Ruiz, Jr.
The hearing where the Court will determine whether or not to
confirm the Plan will take place on June 14, 2023 at 2:00 p.m. in
Courtroom 201 of the U.S. Bankruptcy Court located at 1415 State
Street, Santa Barbara, CA 93101-2511.
A full-text copy of the First Amended Disclosure Statement dated
April 17, 2023 is available at https://bit.ly/3GRRAGc from
PacerMonitor.com at no charge.
Attorneys for Debtor:
Steven R. Fox, Esq.
THE FOX LAW CORPORATION, INC.
17835 Ventura Blvd., Suite 306
Encino, CA 91316
Tel: (818)774-3545
Fax: (818)774-3707
E-mail: srfox@foxlaw.com
About R.P. Ruiz Corporation
R.P. Ruiz Corporation Inc., a concrete subcontractor, sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
C.D. Cal. Case No. 22-10501) on July 5, 2022. In the petition
signed by Richard Ruiz, Jr., president, the Debtor disclosed up to
$10 million in both assets and liabilities.
Judge Ronald A. Clifford III oversees the case.
Steven R. Fox, Esq., at The Fox Law Corporation, Inc., is the
Debtor's counsel.
REGIONAL HEALTH: Incurs $6.9 Million Net Loss in 2022
-----------------------------------------------------
Regional Health Properties, Inc. has filed with the Securities and
Exchange Commission its Annual Report on Form 10-K disclosing a net
loss of $6.87 million on $35.92 million of total revenues for the
year ended Dec. 31, 2022, compared to a net loss of $1.18 million
on $26.69 million of total revenues for the year ended Dec. 31,
2021. Regional Health reported a net loss of $688,000 for the year
ended Dec. 31, 2020.
As of Dec. 31, 2022, the Company had $68.58 million in total
assets, $64.86 million in total liabilities, and $3.72 million in
total stockholders' equity.
Regional Health stated, "The Company intends to pursue measures to
grow its operations, streamline its cost infrastructure and
otherwise increase liquidity, including: (i) refinancing or
repaying debt to reduce interest costs and mandatory principal
repayments, with such repayment to be funded through potentially
expanding borrowing arrangements with certain lenders; (ii)
increasing future lease revenue through acquisitions and
investments in existing properties; (iii) modifying the terms of
existing leases; (iv) replacing certain tenants who default on
their lease payment terms; and (v) reducing other and general and
administrative expenses.
"Management anticipates access to several sources of liquidity,
including cash on hand, collection of patient accounts receivable,
and debt refinancing during the twelve months from the date of this
filing. At December 31, 2022, the Company had $0.8 million in
unrestricted cash, including a Medicaid overpayment of $0.2
million, which was included in "Accrued Expenses" in the Company's
consolidated balance sheet as of December 31, 2022 and repaid by
the time of this filing. In addition, as of December 31, 2022 the
Company had $7.6 million of accounts receivable, mainly consisting
of patient account receivables, which the Company plans to collect
over the next twelve months."
A full-text copy of the Form 10-K is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1004724/000095017023012916/rhe-20221231.htm
About Regional Health Properties
Regional Health Properties, Inc. (NYSE American: RHE) (NYSE
American: RHEpA) -- http://www.regionalhealthproperties.com-- is
a self-managed healthcare real estate investment company that
invests primarily in real estate purposed for senior living and
long-term healthcare through facility lease and sub-lease
transactions.
RESHAPE LIFESCIENCES: To File Restated Financial Statements
-----------------------------------------------------------
The Board of Directors of ReShape Lifesciences Inc., based on the
recommendation of management and after consultation with RSM US
LLP, the Company's independent registered public accounting firm,
determined that the Company's financial statements for the year
ended Dec. 31, 2021, as included in the previously filed Annual
Report on Form 10-K for the year ended Dec. 31, 2021, and the
unaudited condensed consolidated financial statements for quarters
ended June 30, 2021, Sept. 30, 2021, March 31, 2022, June 30, 2022
and Sept. 30, 2022, as included in the previously filed Quarterly
Reports on Form 10-Q for such quarters, were materially misstated
and, therefore, the financial statements should be restated, and
the financial statements should no longer be relied upon.
While preparing the consolidated financial statements for the year
ended Dec. 31, 2022, the Company identified a non-cash error in the
purchase accounting from the Company's June 2021 merger with Obalon
Therapeutics Inc. The merger agreement with Obalon provided that
Obalon would obtain "tail" insurance policies with a claims period
of at least six years from and after the effective time of the
merger for the persons who were covered by the existing directors'
and officers' liability insurance and fiduciary liability insurance
of Obalon at the time of the merger agreement, with terms,
conditions, retentions and levels of coverages at least as
favorable as such Obalon insurance, with respect to matters
existing or occurring at or prior to the effective time of the
merger. Following the merger, the Company had capitalized the D&O
Tail Policy as a claims-based contract at the time of the merger
and included it as an acquired asset of $1.9 million. The Company
re-evaluated the D&O Tail Policy in connection with the preparation
of its consolidated financial statements for the year ended Dec.
31, 2022 and determined that the policy should have been expensed
in full on the effective date, which was prior to the closing of
the merger. In addition, the Company concluded there were
immaterial errors related to the fair value calculation of stock
options awarded during the quarter ended Sept. 30, 2021, an error
related to the reserve for uncertain tax position disclosures and
valuation allowance related to the impairment of certain assets.
The Company intends to include the restated financial information
for the year ended Dec. 31, 2021 and for the Restated Quarterly
Periods in its Annual Report on Form 10-K for the year ended Dec.
31, 2022, which the Company is working to complete as soon as
possible.
The Company's management concluded that the Company's internal
controls over financial reporting were not effective as of June 30,
2021, Sept. 30, 2021, Dec. 31, 2021, March 31, 2022, June 30, 2022,
Sept. 30, 2022 and Dec. 31, 2022 due to insufficient internal
resources with appropriate accounting and finance knowledge and
expertise to design, implement, document and operate effective
internal controls around the financial reporting process. There
can be no assurance that additional material weaknesses will not be
identified as the Company completes its financial close process in
connection with its 2022 Form 10-K.
About ReShape Lifesciences
ReShape Lifesciences Inc. (Obalon Therapeurtics, Inc.) is a weight
loss and metabolic health-solutions company, offering an integrated
portfolio of proven products and services that manage and treat
obesity and metabolic disease.
ReShape reported a net loss of $61.93 million for the year ended
Dec. 31, 2021, a net loss of $21.63 million for the year ended Dec.
31, 2020, and a net loss of $23.67 million for the year ended Dec.
21, 2019. As of Sept. 30, 2022, the Company had $28.46 million in
total assets, $7.51 million in total liabilities, and $20.94
million in total stockholders' equity.
In its Quarterly Report for the three months ended Sept. 30, 2022,
Reshape Lifesciences Inc. said that based on its available cash
resources, it may not have sufficient cash on hand to fund its
current operations for more than 12 months from the date of filing
its Quarterly Report. This condition raises substantial doubt
about the Company's ability to continue as a going concern.
ROYALE ENERGY: CIC Issued 3.3M Shares via Warrant Exercises
-----------------------------------------------------------
CIC RMX LP exercised in full its warrant to purchase shares of the
common stock of Royale Energy, Inc. The Warrant Holder elected to
make a cashless exercise of the Warrant and, as a result, the
Company issued 3,266,055 shares of its common stock to the Warrant
Holder.
The Warrant Holder is a partnership that is sponsored by CIC
Partners. CIC Partners is a Dallas, Texas based middle-market
private equity firm that invests in growth-oriented companies
primarily in the food, restaurant, industrial, and healthcare
industries.
About Royale
El Cajon, CA-based Royale Energy, Inc. -- http://www.royl.com-- is
an independent oil and natural gas producer. Royale's principal
lines of business are the production and sale of oil and natural
gas, acquisition of oil and gas lease interests and proved
reserves, drilling of both exploratory and development wells, and
sales of fractional working interests in wells to be drilled by
Royale. Since 1993, Royale has primarily acquired and developed
producing and non-producing natural gas properties in California.
In December 2018, Royale became the operator of a newly acquired
field in Texas. The most significant factors affecting the results
of operations are (i) changes in oil and natural gas prices,
production levels and reserves, (ii) turnkey drilling activities,
and (iii) the increase in future cost associated with abandonment
of wells.
Royale Energy reported a net loss of $3.60 million for the year
ended Dec. 31, 2021, compared to a net loss of $8.15 million for
the year ended Dec. 31, 2020. As of June 30, 2022, the Company had
$11.36 million in total assets, $21.30 million in total
liabilities, $23.20 million in convertible preferred stock, and a
total stockholders' deficit of $33.15 million.
Dallas, Texas-based Weaver and Tidwell, LLP, the Company's auditor
since 2021, issued a "going concern" qualification in its report
dated April 15, 2022, citing that the Company has suffered
recurring losses from operations and has a net capital deficiency
that raise substantial doubt about its ability to continue as a
going concern.
SALISBURY BANCORP: Continues to Defend Parshall Class Suit
-----------------------------------------------------------
Salisbury Bancorp Inc. disclosed in its Form 8-K Report filed with
the Securities and Exchange Commission on April 3, 2023, that the
Company continues to defend itself from the Parshall class suit in
the Superior Court of the Judicial District of Litchfield,
Connecticut.
A purported class action lawsuit had been filed against Salisbury,
NBT and each of the members of the board of directors of Salisbury
in the Superior Court of the Judicial District of Litchfield,
Connecticut captioned Parshall v. Salisbury Bancorp, Inc., et. al.
(LLI-CV23-6033021), filed on March 28,2023. The Complaint alleges
that the named directors of Salisbury breached their fiduciary
duties by approving the Merger Agreement through an unfair and
flawed process and by failing to make complete and accurate
disclosures regarding this process and that Salisbury and NBT aid
and abetted the alleged breaches. It seeks to enjoin the merger and
requests attorneys' fees and damages in an unspecified amount.
NBT and Salisbury believe these allegations are without merit and
intend to defend against them vigorously.
Salisbury Bancorp, Inc. is the holding company for Salisbury Bank &
Trust. The Bank provides commercial lending, consumer lending,
personal trust services, and safe deposit box facilities to
customers in Connecticut. [BN]
SAVESOLAR CORPORATION: Taps CohnReznick as Investment Banker
------------------------------------------------------------
SaveSolar Corporation, Inc. and SaveSolar Alpha Holdco, LLC seek
approval from the U.S. Bankruptcy Court for the District of
Columbia to employ CohnReznick Capital Markets Securities, LLC as
investment banker.
The firm's services include:
a. assisting in the preparation of materials, including business
and financial information and collateral marketing materials, to be
provided to potential providers of capital or acquirers, preparing
the Debtors for the marketing process, and contacting prospective
parties;
b. assisting the Debtors in establishing criteria for potential
lenders and investors, identifying, screening and ranking
prospective potential providers of capital or acquirers, and
evaluating proposals and alternatives;
c. assisting the Debtors and their advisors through the closing
process; and
d. advising the Debtors and counsel on other matters that may
arrive from time to time during the engagement.
The firm will be paid as follows:
a. Transaction Fees. A fee which is the greater of (a) $250,000
payable only when, if, and to the extent that the estate is
administratively solvent, or (b) the sum of placement fees and sale
fees below.
b. Placement Fee. In the event the transaction involved a
recapitalization of the Debtors, the Debtors shall pay CohnReznick
the following percentage of committed capital, payable upon the
closing of such recapitalization:
Consideration Percentage
1. DIP Financing from Existing Lender .50 percent
2. DIP Financing from New Lender 3 percent
3. New Senior Secured Debt 1.50 percent
4. New Mezzanine Capital 3.50 percent
5. New Equity 6 percent
c. Sale of Assets Fee. In the event the transaction involves the
sale of projects or assets, the Debtors shall pay CohnReznick 3.5%
of the aggregate value from those sales.
Jeffrey Manning, a partner at CohnReznick, 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 through:
Jeffrey R. Manning, CTP
CohnReznick Capital Market Securities, LLC
500 East Pratt Street, ste. 200
Baltimore, MD 21202
Tel: (410) 783-4900
Email: jeff.manning@cohnreznickcapital.com
About SaveSolar Corporation
SaveSolar Corporation, Inc. and SaveSolar Alpha Holdco, LLC filed
their voluntary petitions for relief under Chapter 11, Subchapter V
of the Bankruptcy Code (Bankr. D.D.C. Lead Case No. 23-00045) on
Feb. 2, 2023. In the petitions signed by SaveSolar President Karl
Unterlechner, both Debtors disclosed up to $10 million in assets
and up to $50 million in liabilities.
Judge Elizabeth L. Gunn oversees the cases.
The Debtors tapped Bradford F. Englander, Esq., at Whiteford Taylor
& Preston, LLP as legal counsel; CohnReznick, LLP as financial
advisor; and CohnReznick Capital Markets Securities, LLC as
investment banker.
SENECAL CONSTRUCTION: Taps Robert Core, CPA as Accountant
---------------------------------------------------------
Senecal Construction Co., Inc. seeks approval from the U.S.
Bankruptcy Court for the Eastern District of North Carolina to
employ Robert Core, an accountant practicing in Greensboro, N.C.
The Debtor requires an accountant to assist with the preparation of
its tax returns and tax reports and perform other accounting
services.
Mr. Core will be paid at the rate of $200 per hour.
As disclosed in court filings, Mr. Core is a "disinterested person"
within the meaning of Section 101(14) of the Bankruptcy Code.
Mr. Core can be reached at:
Robert Core, CPA
1009 W Market St.
Greensboro, NC 27401
Tel: (336) 274-4412
About Senecal Construction Co.
Senecal Construction Co., Inc. provides complete management
services for new home construction, home renovations and additions,
and commercial construction projects. The company is based in
Burlington, N.C.
Senecal Construction sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.C. Case No. 23-00421) on Feb. 15,
2023, with up to $10 million in both assets and liabilities. Roland
E. Senecal, Jr., president of Senecal Construction, signed the
petition.
Judge Joseph N. Callaway oversees the case.
The Debtor tapped William P. Janvier, Esq., at Stevens Martin
Vaughn and Tadych, PLLC as bankruptcy counsel and Robert Core, CPA
as accountant.
SIERRA ENTERPRISES: S&P Affirms 'CCC+' ICR, Outlook Negative
------------------------------------------------------------
S&P Global Ratings affirmed all of its ratings on Sierra
Enterprises LLC, including its 'CCC+' issuer credit rating, and
revised its ESG credit indicator for social factors to S-3 from S-2
because of the impact of the product recall on less-than-adequate
liquidity.
The negative outlook reflects Sierra's very high leverage, weak
interest coverage below 1x, and free operating cash flow (FOCF)
deficit that will take several quarters to turn around before the
capital structure becomes sustainable.
Sierra's capital structure will remain unsustainable in the near
term.
The unexpected incremental recall at the Beloit facility, which is
part of its TRU Aseptics LLC acquisition in 2019, put pressure on
the company's liquidity position. S&P said, "The sponsor alleviated
that with a $60 million preferred equity injection--which we treat
as debt given the very high payment-in-kind (PIK) interest of 25%.
In conjunction, Sierra negotiated a maturity extension with its
lenders and cash interest relief for the next 15 months on its
first-lien debt and at least 2½ years on its second-lien debt.
Those facilities incur PIK interest (partial in the first-lien
case) in exchange for higher total interest expenses. Still, recall
related expenses continue in 2023, which will keep its capital
structure unstainable until it can put the added cost behind it and
restore leverage and cash flow. Sierra is FOCF negative with less
than 1x interest coverage. We expect debt to EBITDA to improve to
9x by the end of fiscal 2024 (including approximately $80 million
of preferred equity that we add to debt; leverage would be about
7.5x excluding the preferred equity). In addition, we expect funds
from operations (FFO) cash interest coverage to improve to the
mid-1x area next year."
Sierra's core business is recovering from last year's cost
inflation, and volume continues to increase.
S&P said, "We expect revenue to increase in the double-digit
percent area for its core segment, reflecting full-year impact of
price increases and volume growth as food services demand continues
to improve. Despite the challenges in its TRU Aseptics business due
to the recall, underlying demand remains strong for shelf-stable
flavor and nutritional supplement for the beverages industry. We
expect volume growth to pick up in this segment in the second half.
Longer term, we believe Sierra participates in an industry with
healthy growth prospects. With the support from its owners and an
extended maturity, it has enough runway to improve operations."
The negative outlook reflects Sierra's very high leverage, weak
interest coverage below 1x, and negative FOCF generation. This
could result in a lower rating if a default scenario becomes likely
over the next 12 months to the extent the company underperforms our
expectations.
S&P could lower its ratings if EBITDA and cash flow generation do
not stabilize over the second half of 2023, which would lead to
incremental cash burn pressuring liquidity and possibly a payment
default or liquidity crunch. This could occur if:
-- Volume growth and margin expansion do not come in as expected,
resulting in lower operational performance in its core business,
further depressing FOCF; and
-- It does not achieve operational turnaround at TRU Aseptics and
continues to bleed cash in this segment after the recall.
S&P could consider a positive rating action if the company's
operation improves and FFO cash interest improves to at least the
mid-1x area. Depending on the timing, S&P would also reassess the
company's maturity profile and liquidity position. This could occur
if:
-- The company increases sales volumes and does not lose a
significant number of customers;
-- Input costs inflation abates, and the company holds its price
increase; and
-- Its liquidity position improves with no upcoming maturities.
ESG credit indicators: To E-2, S-3, G-3; from E-2, S-2, G-3
S&P said, "We now view social factors as a moderately negative
consideration in our credit analysis of Sierra Enterprise, from
neutral previously, because the larger than expected recall at its
Beloit facility put pressure on credit metrics and cash flow
generation. We estimate that the company incurred more than $80
million of costs related to its July and August 2023 recall because
of potential microbial contamination. It also reflects ongoing cash
settlements to litigating customers for which we believe Sierra
only has partial insurance coverage and will rely on its recent
liquidity injection to settle."
SIGYN THERAPEUTICS: Appoints New Chief Scientific Officer
---------------------------------------------------------
Sigyn Therapeutics, Inc. has appointed Annette Marleau, Ph.D. as
chief scientific officer effective immediately.
Dr. Marleau is a recognized thought leader in the development of
therapeutic blood purification technologies to address cancer.
Prior to joining Sigyn Therapeutics, Dr. Marleau was chief
technology officer at Immunicom, Inc., where she led R&D endeavors
to establish blood purification candidates to treat cancer. She
also served as Director of Research at Aethlon Medical, Inc., where
she oversaw preclinical programs that facilitated the
first-in-human clinical investigation of the Aethlon Hemopurifier
as an adjunct therapy to enhance the benefit of pembrolizumab
(Keytruda), an immuno-oncology drug approved by FDA to treat
cancer.
Dr. Marleau has been awarded more than $6 million in NIH grants and
contracts to serve as Principal Investigator of pre-clinical and
clinical programs to advance blood purification technologies.
Additionally, she has co-authored two FDA-cleared Investigational
Device Exemptions, co-authored a regulatory submission that
resulted in an FDA "Breakthrough Device" award, and is an inventor
on pending and issued patents underlying blood purification
therapies targeting cancer, inflammatory disorders, and
life-threatening infectious diseases.
Dr. Marleau completed a fellowship in immunology at Scripps
Research Institute in La Jolla, CA. She is a graduate of Western
University (PhD), Ontario Veterinary College at University of
Guelph (Master of Science), and University of Waterloo (Bachelor of
Science) in Canada.
About Sigyn
Sigyn Therapeutics, Inc. is a development-stage company focused on
the creation of therapeutic solutions that address unmet needs in
global health. Sigyn Therapy, the Company's lead product
candidate, is a broad-spectrum blood purification technology
designed to treat pathogen-associated inflammatory disorders that
are not addressed with approved drug therapies.
Sigyn Therapeutics reported a net loss of $2.93 million for the
year ended Dec. 31, 2022, compared to a net loss of $3 million for
the year ended Dec. 31, 2021. As of Dec. 31, 2022, the Company had
$332,879 in total assets, $2.24 million in total liabilities, and a
total stockholders' deficit of $1.90 million.
New York, NY-based Kreit & Chiu CPA LLP, the Company's auditor
since 2021, issued a "going concern" qualification in its report
dated March 31, 2023, citing that the Company has suffered
recurring losses from operations, has a net capital deficiency,
and
negative cash flows from operating activities, therefore, the
Company has stated that substantial doubt exists about its ability
to continue as a going concern.
SKILLZ INC: Files Amended Certificate of Incorporation
------------------------------------------------------
Skillz, Inc. filed a Certificate of Correction on April 6, 2023, to
the Third Amended and Restated Certificate of Incorporation of the
Company, as amended by the Certificate of Amendment filed on May
18, 2022, with the Secretary of State of the State of Delaware.
The Certificate of Correction was filed to correct an inaccurate
reference to the total number of authorized shares of capital stock
of the Company, which failed to reference the common stock of the
Company.
Pursuant to Section 103(f) of the Delaware General Corporation Law,
the correction was effective as of Dec. 16, 2020.
As previously disclosed, on March 17, 2023, the Company filed a
petition in the Delaware Court of Chancery pursuant to Section 205
of the DGCL seeking validation of the Company's Certificate of
Incorporation and the shares issued pursuant thereto to resolve any
uncertainty with respect to those matters (captioned In re Skillz
Inc., C.A. No. 2023-0336-LWW (Del. Ch.), the "Section 205
Action").
On April 5, 2023, the Court of Chancery held a hearing in the
Section 205 Action and orally granted the Company's petition and,
on April 5, 2023, the Court issued an order in the Section 205
Action granting the Company's petition validating the Certificate
of Incorporation, all shares of capital stock of the Company issued
pursuant thereto and all other corporate actions and transactions
taken in reliance on the effectiveness of the Certificate of
Incorporation.
About Skillz Inc.
Skillz Inc. -- https://www.skillz.com -- is a mobile games platform
that connects players in fair, fun, and meaningful competition.
The Skillz platform helps developers build multi-million dollar
franchises by enabling social competition in their games.
Leveraging its patented technology, Skillz hosts billions of casual
esports tournaments for millions of mobile players worldwide and
distributes millions in prizes each month.
Skillz reported a net loss of $438.87 million in 2022, a net loss
of $187.92 million in 2021, a net loss of $149.08 million in 2020,
and a net loss of $23.60 million in 2019. As of Dec. 31, 2022, the
Company had $621.29 million in total assets, $342.89 million in
total liabilities, and $278.40 million in total stockholders'
equity.
* * *
As reported by the TCR on April 11, 2023, S&P Global Ratings
revised its outlook on the Company to negative from stable and
affirmed its issuer credit rating of 'CCC+'. The negative outlook
reflects uncertainty around the Company's ability to turn its
substantially negative cash flow positive over the next three years
given ongoing challenges in right-sizing its operations and its
unproven business model.
SKINNY & CO: Seeks to Hire Fultz Maddox Dickens as Legal Counsel
----------------------------------------------------------------
Skinny & Co., Inc. seeks approval from the U.S. Bankruptcy Court
for the Southern District of Indiana to hire Fultz Maddox Dickens
PLC as its counsel.
The firm's services include:
(a) taking necessary or appropriate actions to protect and
preserve Debtor's estate, including the prosecution of actions on
the Debtor's behalf, the defense of actions commenced against the
Debtor, the negotiation of disputes in which the Debtor is
involved, and the preparation of objections to claims filed against
the Debtor's estate;
(b) preparing on behalf of the Debtor, as
debtor-in-possession, necessary or appropriate motions,
applications, answers, orders, reports and other papers in
connection with the administration of the Debtor's estate;
(c) providing advice, representation, and preparation of
necessary documentation and pleadings regarding debt restructuring,
statutory bankruptcy issues, post-petition financing, real estate,
business and commercial litigation, and as applicable, asset
disposition;
(d) counseling the Debtor with regard to its rights and
obligations as debtor-in-possession, and its powers and duties in
the continued management and operations of its business;
(e) taking necessary or appropriate actions in connection with
a plan or plans of reorganization and related disclosure statement
and all related documents, and such further actions as may be
required in connection with the administration of the Debtor's
estate; and
(f) acting as general bankruptcy counsel for the Debtor and
performing all other necessary or appropriate legal services in
connection with the Chapter 11 case.
Fultz Maddox will charge these hourly fees:
Wendy D. Brewer, Counsel $425
Philip A. Martin, Partner $490
Laura M. Brymer, Partner $365
Timothy A. Wiseheart, Paralegal $215
Amy L. Hoagland, Paralegal $210
Rachel G. Risinger, Paralegal $205
The firm received a retainer in the amount of $25,000.
Wendy Brewer, Esq., at Fultz Maddox, disclosed in a court filing
that the firm and its attorneys do not represent any interest
adverse to the Debtor's bankruptcy estate.
Fultz Maddox can be reached through:
Wendy D. Brewer, Esq.
Fultz Maddox Dickens PLC
333 N. Alabama Street, Suite 350
Indianapolis, IN 46204
Telephone: (317) 215-6220
Email: wbrewer@fmdlegal.com
About Skinny & Co.
Skinny & Co. is a skincare company offering chemical-free products
for skin, hair, and body.
Skinny & Co., Inc. filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Ind. Case No.
23-01410) on April 7, 2023. The petition was signed by Luke Geddie
as president. At the time of filing, the Debtor estimated $390,275
in assets and $2,954,157 in liabilities.
Judge Jeffrey J Graham presides over the case.
Wendy Brewer, Esq. at Fultz Maddox Dickens PLC represents the
Debtor as counsel.
SONOMA PHARMACEUTICALS: CFO Quits; Interim Replacement Named
------------------------------------------------------------
Chad White resigned as chief financial officer of Sonoma
Pharmaceuticals, Inc. and the Board of Directors appointed Jerry
Dvonch as the Company's interim chief financial officer.
Mr. Dvonch, age 54, served as the Company's chief financial officer
from September 2020 until November 2022, after assisting with its
transition to its Boulder, Colorado office. Prior to his time with
the Company, Mr. Dvonch was the controller and senior vice
president of Finance and Accounting for the SpineCenter Atlanta
since March 2017. From March 2016 to April 2016 he was a
consultant controller for DS Healthcare Group, Inc. Prior to that
he was the director for external reporting and director of finance
of NeoGenomics Laboratories from July 2005 to July 2015. He has
over 10 years of experience with SEC reporting. Mr. Dvonch is a
licensed Certified Public Accountant in New York. He holds a
Master of Business Administration in Finance from the University of
Rochester and a Bachelor of Business Administration in Accounting
from Niagara University.
The Company entered into a consulting agreement with Mr. Dvonch
pursuant to which the Company agreed to compensate him at a rate of
$250 per hour. The Company will also grant him $30,000 in
restricted common stock vesting in two equal tranches on July 15,
2023 and Aug. 15, 2023, provided that upon termination of the
consulting agreement, any unvested shares of restricted stock shall
become forfeited. The value of the stock will be determined using
a five day weighted trailing average on the day of grant. The
Company will reimburse Mr. Dvonch for the monthly premiums paid by
Consultant for health continuation coverage under the Consolidated
Omnibus Budget Reconciliation Act of 1985 for himself and his
dependents during the term of the consulting agreement. For each
month of continuous service under the consulting agreement, Mr.
Dvonch's outstanding and vested equity awards shall remain
exercisable for an additional month following their current
expiration date of May 18, 2024, subject to the provisions of the
Company's equity incentive plans.
Mr. White was employed at-will, and his unvested options will be
forfeited upon termination in accordance with the applicable award
agreements.
The Company thanks Mr. White for his service and wish him the best
in his future endeavors. The Company also thanks Mr. Dvonch for
his assistance during this transition as the Company searches for a
new chief financial officer.
About Sonoma Pharmaceuticals
Sonoma Pharmaceuticals, Inc. -- http://www.sonomapharma.com-- is a
global healthcare company that develops and produces stabilized
hypochlorous acid, or HOCl, products for a wide range of
applications, including wound care, animal health care, eye care,
oral care and dermatological conditions. The Company's products
reduce infections, itch, pain, scarring and harmful inflammatory
responses in a safe and effective manner. In-vitro and clinical
studies of HOCl show it to have impressive antipruritic,
antimicrobial, antiviral and anti-inflammatory properties. Its
stabilized HOCl immediately relieves itch and pain, kills
pathogens
and breaks down biofilm, does not sting or irritate skin and
oxygenates the cells in the area treated assisting the body in its
natural healing process. The Company sells its products either
directly or via partners in 54 countries worldwide.
Sonoma reported a net loss of $5.09 million for the year ended
March 31, 2022, compared to a net loss of $3.95 million for the
year ended March 31, 2021. As of Dec. 31, 2022, the Company had
$13.93 million in total assets, $8.37 million in total
liabilities,
and $5.56 million in total stockholders' equity.
Atlanta, Georgia-based Frazier & Deeter, LLC, the Company's auditor
since 2021, issued a "going concern" qualification in its report
dated July 13, 2022, citing that the Company has incurred
significant losses and needs to raise additional funds to meet its
obligations and sustain its operations. These conditions raise
substantial doubt about its ability to continue as a going
concern.
SPI ENERGY: Incurs $33.7 Million Net Loss in 2022
-------------------------------------------------
SPI Energy Co., Ltd. has filed with the Securities and Exchange
Commission its Annual Report on Form 10-K disclosing a net loss of
$33.72 million on $177.52 million of net revenues for the year
ended Dec. 31, 2022, compared to a net loss of $44.83 million on
$161.99 million of net revenues for the year ended Dec. 31, 2021.
As of Dec. 31, 2022, the Company had $231.09 million in total
assets, $213.22 million in total liabilities, and $17.87 million in
total equity.
New York, New York-based Marcum Asia CPAs LLP, the Company's
auditor since 2019, issued a "going concern" qualification in its
report dated April 14, 2023, citing that the Company has a
significant working capital deficit, has incurred significant
losses and needs to raise additional funds to sustain its
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
A full-text copy of the Form 10-K is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/0001210618/000168316823002397/spi_i10k-123122.htm
About SPI Energy Co.
SPI Energy Co., Ltd. is a global renewable energy company and
provider of solar storage and EV solutions that was founded in 2006
in Roseville, California and is now headquartered in McClellan
Park, California.
STONERIDGE INC: S&P Cuts ICR to 'B' on Negative Capital Structure
-----------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Stoneridge
Inc. to 'B' from 'B+'.
S&P's negative outlook reflects the risk that Stoneridge's
performance could weaken and pressure its ability to address the
upcoming revolver maturity in a timely matter. Weaker performance
over the next 12 months could be affected by continued supply chain
disruptions, inflationary cost pressures, or a slower take rate of
Stoneridge's MirrorEye program.
Stoneridge faces heightened refinancing risks because of its
upcoming revolving credit facility maturity that expires in June
2024. S&P's consider Stoneridge's liquidity to be dependent on
access to its $300 million revolving credit facility, magnifying
the risk of addressing the upcoming debt maturity. Though its bank
group has been amenable to resetting covenants and modifying
various conditions to the credit agreement in the past, current
high yield market conditions could prove challenging for executing
a maturity extension or other credit solutions due to continued
Federal Reserve rate hikes, persistent inflation, and general
macroeconomic uncertainty.
The company's performance in recent years has been affected by OEM
production volatility, challenges sourcing key raw material inputs,
and inflationary cost pressures that have weighed on EBITDA and
cash flow. Additionally, Stoneridge's largely fixed design and
development costs burdened profitability, although we recognize
that these investments are necessary to support future growth.
These factors have collectively reduced Stoneridge's EBITDA margins
to 5.4% in 2022 from above 10% prior to 2019. S&P said, "We expect
margins will gradually improve in 2023 as Stoneridge realizes some
commercial cost recoveries and ramps production of its MirrorEye
program. Further, we expect working capital investments will abate
to some extent in 2023 as supply chain conditions moderately ease
and availability of key raw material inputs improves."
S&P said, "Based on our assumptions, we expect that Stoneridge's
leverage and free operating cash flow (FOCF) to debt will remain in
the mid-3x range and 1%-2% range for 2023, respectively.
"Weaker performance relative to our forecast could lead to further
negative cash flows that reduce Stoneridge's increasingly limited
sources of liquidity, and risk breaching financial maintenance
covenants. While there is sufficient covenant headroom, compliance
with its covenants could be more challenging in the second half of
2023 when the thresholds begin to tighten. Shortly after 12 months
in our forecast, Stoneridge's revolving credit facility is
scheduled to mature and once it becomes current in a couple of
months, we would then view the funded balance as a use and we think
the company would not have enough other sources of liquidity to
repay this revolver balance.
"Our negative outlook reflects the risk that Stoneridge's
performance could weaken and pressure its ability to address the
upcoming revolver maturity in a timely matter. Weaker performance
over the next 12 months could be affected by continued supply chain
disruptions, inflationary cost pressures, or a slower take rate of
Stoneridge's MirrorEye program.
"We could lower our rating on Stoneridge if its debt commitments
appear unsustainable or its FOCF weakens and causes its liquidity
to deteriorate. FOCF could weaken if Stoneridge's EBITDA margins
tighten due to supply chain disruptions, inflationary cost
pressures, or sales volumes with customers are lower than
forecast."
S&P could raise its rating or revise its outlook on Stoneridge if:
-- The company addresses the upcoming revolver maturity in a
timely manner; or
-- Its sales volumes and EBITDA margins normalize and support
sustainable FOCF generation and FOCF to debt consistently above 5%
and debt to EBITDA less than 4x.
ESG credit indicators: E-3, S-2, G-2
Environmental factors are a moderately negative consideration in
S&P's credit analysis of Stoneridge because some products in its
control devices segment (20%-25% of sales) face displacement risk
from electrification. In addition, its ability to offset potential
losses in its fuel line business largely depends on it expanding
the volume of content per vehicle in its electronics and MirrorEye
connectivity segments. A faster-than-expected transition to battery
electric vehicles, coupled with the slow adoption of the company's
products, represents a modest downside risk.
SUSTAINABLE SAN DIEGO: Taps Totaro & Shanahan as Legal Counsel
--------------------------------------------------------------
Sustainable San Diego, Inc. seeks approval from the U.S. Bankruptcy
Court for the Southern District of California to employ Totaro &
Shanahan as its general insolvency counsel.
The firm's services include:
a. assisting the Debtor with the completion of documents
required by the Office of the U.S. Trustee, preparing status
reports, reviewing monthly operating reports, and attending
hearings;
b. consulting with the Debtor's representative and other
bankruptcy professionals concerning documents needed and reports to
be prepared;
c. assisting the Debtor in the preparation of documents for
compliance with the requirements of the Office of the U.S.
Trustee;
d. negotiating with creditors regarding the amount and payment
of their claims;
e. discussing with the Debtor's representative concerning the
formulation of disclosure statement and plan of reorganization;
f. preparing the disclosure statement and Chapter 11 plan of
reorganization and any amendments thereto;
g. serving ballots to creditors, tallying ballots and
submitting them to the court;
h. responding to any objections to disclosure statement or
plan; and
i. representing the Debtor in cases where no litigation
counsel is employed.
In cases involving litigation, the firm will render these
services:
a. preparation, submission and prosecution of any adversary
proceedings that may be necessary to the case including but not
limited to determining the value of real property as collateral and
extinguishing unsecured liens on real property;
b. review of proofs of claims and if necessary, preparation of
formal objections with respect to claims asserted;
c. opposition to any motion sought by trustee, court or
creditors;
d. any other adversary matter that arises during the case.
The firm's hourly rates are as follows:
Attorneys $550 per hour
Paralegal $150 per hour
Totaro & Shanahan received a retainer in the amount of $7,000 to
cover the filing fee.
Michael Totaro, Esq., one of the firm's attorneys who will be
providing the services, disclosed in a court filing that he is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Michael R. Totaro, Esq.
Maureen J. Shanahan & Associates
dba Totaro & Shanahan
Pacific Palisades, CA 90272
Phone: +1 310-573-2107
Email: ocbkatty@aol.com
About Sustainable San Diego
Sustainable San Diego, Inc. owns in fee simple title a commercial
building with yoga studio located at 4862 St. San Diego, Calif.,
valued at $1.65 million.
Sustainable San Diego sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 22-02982) on Nov.
19, 2022. In the petition signed by Dustin T. Johnston, president,
the Debtor disclosed $1,661,000 in total assets and $931,322 in
total liabilities.
Judge Laura S. Taylor oversees the case.
Michael R. Totaro, Esq., at Totaro & Shanahan serves as the
Debtor's counsel.
TEAL PROPERTIES: June 5 Plan Confirmation Hearing Set
-----------------------------------------------------
On March 5, 2023, Teal Properties, Inc. filed with the U.S.
Bankruptcy Court for the Eastern District of Tennessee a Disclosure
Statement referring to a Chapter 11 Plan.
On April 17, 2023, Judge Nicholas W. Whittenburg approved the
Disclosure Statement and ordered that:
* May 22, 2023, is fixed as the last day for submitting
ballots accepting or rejecting the plan.
* June 5, 2023, at 9:30 a.m. in the Second Floor Courtroom of
the Bankruptcy Court, 200 South Jefferson Street, Winchester,
Tennessee is fixed for the hearing on confirmation of the plan.
* May 22, 2023, is fixed as the last day for filing and
serving pursuant to Fed. R. Bankr. P. 3020(b)(1) written objections
to confirmation of the plan.
A copy of the order dated April 17, 2023 is available at
https://bit.ly/41IgyA2 from PacerMonitor.com at no charge.
Counsel to the Debtor:
Steven L. Lefkovitz, Esq.
STEVEN L. LEFKOVITZ
908 Harpeth Valley Place
Nashville, TN 37221
Tel: (615) 256-8300
Fax: (615) 255-4516
E-mail: slefkovitz@lefkovitz.com
About Teal Properties
Teal Properties, Inc. filed a Chapter 11 bankruptcy petition
(Bankr. E.D. Tenn. Case No. 22-12203) on Sept. 30, 2022, with up to
$1 million in both assets and liabilities. Judge Nicholas W.
Whittenburg oversees the case.
The Debtor is represented by Lefkovitz & Lefkovitz, PLLC.
TEHUM CARE: Committee Seeks to Hire Stinson LLP as Legal Counsel
----------------------------------------------------------------
The official committee of unsecured creditors of Tehum Care
Services, Inc. seeks approval from the U.S. Bankruptcy Court for
the Southern District of Texas to employ Stinson LLP as its
counsel.
The firm's services include:
(a) consulting with the Debtor and the Office of the United
States Trustee regarding administration of the case;
(b) advising the Committee with respect to its rights, powers,
and duties as they relate to the case;
(c) investigating the acts, conduct, assets, liabilities, and
financial condition of the Debtor;
(d) assisting the Committee in analyzing the Debtor's
pre-petition and postpetition relationships with its creditors,
equity interest holders, employees, and other parties in interest;
(e) assisting and negotiating on the Committee's behalf in
matters relating to the claims of the Debtor's other creditors;
(f) assisting the Committee in preparing pleadings and
applications as may be necessary to further the Committee's
interests and objectives;
(g) researching, analyzing, investigating, filing and
prosecuting litigation on behalf of the Committee in connection
with issues including but not limited to avoidance actions or
fraudulent conveyances;
(h) representing the Committee at hearings and other
proceedings;
(i) reviewing and analyzing applications, orders, statements
of operations, and schedules filed with the Court and advising the
Committee regarding all such materials;
(j) aiding and enhancing the Committee's participation in
formulating a plan;
(k) assisting the Committee in advising its constituents of
the Committee's decisions, including the collection and filing of
acceptances and rejections to any proposed plan; and
(l) performing such other legal services as may be required
and are deemed to be in the interests of the Committee.
The firm will be paid at these rates:
Partners $505 - $550 per hour
Associates $405 - 440 per hour
Paralegals $320 per hour
As disclosed in the court filings, Stinson qualifies as a
"disinterested person" as defined in Bankruptcy Code Sec. 101(14).
The firm can be reached through:
Paul B. Lackey, Esq.
STINSON LLP
2200 Ross Avenue, Suite 2900
Dallas, TX 75201
Tel: (214) 560-2201
Email: paul.lackey@stinson.com
About Tehum Care Services
Tehum Care Services Inc., doing business as Corizon Health Services
Inc., is a privately held prison healthcare contractor in the
United States. It is based in Brentwood, Tenn.
Tehum Care Services filed a petition for relief under Chapter 11 of
the Bankruptcy Code (Bankr. S.D. Texas Case No. 23-90086) on Feb.
13, 2023. In the petition filed by Russell A. Perry, as chief
restructuring officer, the Debtor reported assets between $1
million and $10 million and liabilities between $10 million and $50
million.
Judge Christopher M. Lopez oversees the case.
The Debtor tapped Gray Reed & McGraw, LLP as bankruptcy counsel;
Bradley Arant Boult Cummings, LLP as special litigation counsel;
and Ankura Consulting Group, LLC as financial advisor. Russell A.
Perry, senior managing director at Ankura, serves as the Debtor's
chief restructuring officer. Kurtzman Carson Consultants, LLC is
the claims, noticing and solicitation agent.
The U.S. Trustee for Region 7 appointed an official committee to
represent unsecured creditors in the Debtor's Chapter 11 case. The
committee is represented by Stinson, LLP.
TUTOR PERINI: Moody's Cuts CFR to B3 & Alters Outlook to Negative
-----------------------------------------------------------------
Moody's Investors Service downgraded Tutor Perini Corporation's
corporate family rating to B3 from B2, and its probability of
default rating to B3-PD from B2-PD. The ratings on its senior
secured bank credit facilities – including the first lien
revolving credit facility and the first lien term loan B – have
been affirmed at Ba3. The senior unsecured notes rating has been
downgraded to Caa1 from B3. The company's speculative grade
liquidity rating ("SGL") of SGL-3 is unchanged. The rating outlook
has been revised to negative from stable.
"The downgrade reflects significantly weaker credit metrics
resulting from recognition of a substantial amount of charges in
2022, and refinancing risk associated with the company's unsecured
notes" said Sandeep Sama, Moody's Vice President – Senior Analyst
and lead analyst for Tutor Perini.
Governance considerations under Moody's ESG framework – including
the company's recent track record of recovering less than the book
value of its claims, leading to the recognition of charges – were
key drivers of the rating action.
Downgrades:
Issuer: Tutor Perini Corporation
Corporate Family Rating, Downgraded to B3 from B2
Probability of Default Rating, Downgraded to B3-PD from B2-PD
Senior Unsecured Regular Bond/Debenture, Downgraded to Caa1 (LGD5)
from B3 (LGD5)
Affirmations:
Issuer: Tutor Perini Corporation
Senior Secured 1st Lien Bank Credit Facility, Affirmed Ba3
(LGD2)
Outlook Actions:
Issuer: Tutor Perini Corporation
Outlook, Changed To Negative From Stable
RATINGS RATIONALE
Tutor Perini's operating results were negatively impacted by around
$330 million in charges during 2022 related to certain adverse
legal judgements, settlements with customers, and changes in
estimates for project charges. This led to significantly weaker
than expected credit metrics. The company continues to be in
discussions with various customers regarding claims, which could
result in additional charges being incurred during 2023. A change
in the company's approach towards resolution of these claims in the
latter part of 2022, particularly in New York – with a heightened
focus on reaching a quicker settlement as opposed to pursuing
litigation and arbitration – resulted in a significant amount of
charges being recognized in the second half of 2022.
The maturity of the company's revolving credit facility and term
loan can spring to January 2025 (vs original maturity in August
2025 and August 2027 respectively) if the senior unsecured notes
remain outstanding on January 30, 2025 (vs maturity date of May
2025). Given current trading levels for the unsecured notes,
Moody's sees elevated refinancing risk, as well as the possibility
of either a distressed exchange or a below-par debt repurchase --
both of which could constitute an event of default under the
Moody's definition.
Tutor Perini's B3 corporate family rating is supported by its good
market position, meaningful scale and diversity across a number of
US nonresidential building and civil construction markets, as well
as the expected improvement in bidding opportunities and limited
competition on large civil infrastructure projects. However, its
rating is constrained by its currently weak credit metrics,
relatively thin margins, inconsistent free cash flow generation,
high level of unbilled receivables, significant exposure to
fixed-price construction risk and its currently weak contract
backlog which resulted from limited project bidding opportunities
during the COVID-19 outbreak. The company is also exposed to
contingent risks associated with periodic contract disputes and the
possibility of write-downs as it pursues past due payments.
Tutor Perini's SGL rating of SGL-3 reflects adequate liquidity. At
the end of 2022, the company had $48 million of unrestricted cash
readily available for general corporate purposes, and $212 million
of cash at joint ventures. The company's $175 million revolving
credit facility was undrawn and fully available. While the
incurrence of charges has affected operating results, 2022 cash
flow was strong and enhanced by the acceleration of settlements and
collections.
Tutor Perini's credit agreement requires compliance with the
maximum first lien net leverage ratio covenant. The company secured
two amendments in recent months – initially in October 2022, and
subsequently in March 2023 – which raised the covenant ceilings.
Moody's expect Tutor Perini to remain in compliance over the next
12 months.
The negative outlook reflects the risk of additional charges in
2023 which could keep credit metrics under pressure for longer, and
refinancing risk associated with the company's senior unsecured
notes.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
A rating upgrade is less likely in the near-term due to the
negative outlook. However, Moody's could consider an upgrade if
funds from operations are sustained at more than 12% of its
outstanding debt, there is a path to refinancing of the unsecured
notes, backlog rises substantially, and the company consistently
generates free cash flow.
Moody's could downgrade the rating if (1) the company continues to
incur a significant amount of additional charges, keeping credit
metrics pressured for longer, (2) prospects for refinancing the
unsecured notes worsen materially, or (3) liquidity materially
weakens.
Tutor Perini Corporation is headquartered in Sylmar, California and
provides general contracting, construction management and
design-build services to public and private customers primarily in
the United States. Tutor Perini's revenues for the trailing twelve
months ended December 31, 2022 was $3.8 billion and its backlog was
$7.9 billion. The company reports its results in three segments:
Civil (46% of LTM revenues; 56% of backlog as of December 31, 2022)
is engaged in public works construction including the repair,
replacement and reconstruction of highways, bridges and mass
transit systems; Building (33% of LTM revenues; 28% of backlog),
which handles large projects in the hospitality and gaming, sports
and entertainment, education, transportation and healthcare
markets; Specialty Contractors (21% LTM revenues; 16% of backlog)
provides mechanical, electrical, plumbing and heating installation
services.
The principal methodology used in these ratings was Construction
published in September 2021.
U.S. STEM CELL: Incurs $2.9 Million Net Loss in 2022
----------------------------------------------------
U.S. Stem Cell, Inc. has filed with the Securities and Exchange
Commission its Annual Report on Form 10-K disclosing a net loss of
$2.86 million on $82,049 of total revenue for the year ended Dec.
31, 2022, compared to a net loss of $3.28 million on $200,749 of
total revenue for the year ended Dec. 31, 2021.
As of Dec. 31, 2022, the Company had $68,039 in total assets,
$14.81 million in total liabilities, and a total stockholders'
deficit of $14.74 million.
New York, NY-based RBSM LLP, the Company's auditor since 2018,
issued a "going concern" qualification in its report dated April
14, 2023, citing that the Company has suffered recurring losses
from operations, generated negative cash flows from operating
activities, will require additional capital to fund its current
operating plan, and has stated that substantial doubt exists about
the Company's ability to continue as a going concern.
A full-text copy of the Form 10-K is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1388319/000118518523000339/usstem20221231_10k.htm
About U.S. Stem Cell
Headquartered in Sunrise, Florida, U.S. Stem Cell, Inc. --
http://www.us-stemcell.com-- is a biotechnology company focused
on
the discovery, development and, subject to regulatory approval,
commercialization of autologous cell therapies for the treatment of
disease and injury. The Company is also a regenerative medicine
company specializing in physician/veterinary training and
certification and stem cell products, stem cell banking, and the
creation and management of stem cell clinics. Its lead cardiac
product candidate is MyoCell, an innovative clinical therapy
designed to populate regions of scar tissue within a patient's
heart with autologous muscle cells, or cells from a patient's body,
for the purpose of improving cardiac function in chronic heart
failure patients. Its lead product for in clinic use is Adipocell,
a proprietary kit for the isolation of adipose derived stem cells.
URBAN COMMONS: Amends Plan to Include Residential Board Sec. Claims
-------------------------------------------------------------------
Urban Commons 2 West LLC, and its Debtor Affiliates submitted a
First Amended Disclosure Statement describing First Amended Plan
dated April 17, 2023.
The Plan provides a means by which the Debtors' main assets will be
liquidated through the Sale. The Plan further provides that the
proceeds of such liquidation, together with the Debtors' Cash and
Causes of Action, will be distributed under Chapter 11 of the
Bankruptcy Code, and sets forth the treatment of all Claims
against, and interests in, the Debtors.
The Plan provides for the appointment of a Plan Administrator who
will monetize the Debtors' assets and make Distributions to Holders
of Allowed Claims as provided in the Plan.
The Plan provides for payments on Allowed Claims in accordance with
the priorities for claims as set forth under the Bankruptcy Code.
The Plan will primarily be funded with the Debtors' Cash and sale
of the Hotel Interest. The Plan may also be funded with Litigation
Proceeds, if any, and the net proceeds from the liquidation of any
other assets of the Debtors.
Class 2 consists of the Secured Claims of the Residential Board.
The holder of the Allowed Class 2 Claim to the extent that such
claim is not paid in full as a Cure Claim shall receive the next
available net cash proceeds from the Sale after payment of (i) the
Allowed Class 1 Claims of BPC DIP Lender, LLC in full, (ii) all
Allowed Cure Claims in full and (iii) the Broker Fee up to 100% of
their Allowed Class 2 Claim. The unpaid balance of the Class 2
Creditor's Claims, if any, shall be deemed Class 3 Claims for all
purposes. The amount of claim in this Class total $5,361,699.16
Class 3 consists of Other Secured Claims. The holders of Class 3
Claims shall receive, in the order of priority as existed as of the
Petition Date, the next available net cash proceeds from the Sale
after payment of (i) the Allowed Class 1 Claims of BPC Lender, LLC
in full, (ii) the Allowed Class 2 Claims of the Residential Board
in full, (iii) all Allowed Cured Claims in full and (iv) the Broker
Fee, up to 100% of their Allowed Class 3 Claim. The unpaid balance
of the Class 3 Creditor's Claims, if any, shall be deemed Class 4
Unsecured Claims for all purposes. The amount of claim in this
Class total $189,819.55.
Like in the prior iteration of the Plan, holders of General
Unsecured Claims that are Allowed as defined in the Plan will
receive, in full and final satisfaction, compromise, settlement and
release of the Allowed General Unsecured Claims, a Pro Rata
Distribution from (a) 50% of the Litigation Proceeds and (b)
Available Cash remaining after payment of Allowed Administrative
Claims, Allowed Secured Claims, Allowed Priority Tax Claims, U.S.
Trustee Fees, Allowed Other Priority Claims and Post Effective Date
Administrative Claims up to 100% of their Allowed Claims in one or
more Distributions as determined by the Plan Administrator on a
date(s) to be determined by the Plan Administrator in full and
final satisfaction of all Class 2 Claims.
The Plan will primarily be funded with the net sale proceeds of the
Hotel Interests, the Debtors' cash on hand, the Administrative and
Unsecured Carveouts and Litigation Proceeds, if any, together with
the net proceeds from the liquidation and/or turnover of any other
assets of the Debtors. Distributions shall be made by the Plan
Administrator.
A full-text copy of the First Amended Disclosure Statement dated
April 17, 2023 is available at https://bit.ly/41nrtzk from
PacerMonitor.com at no charge.
Debtors' Counsel:
Robert L. Rattet, Esq.
DAVIDOFF HUTCHER & CITRON LLP
605 Third Avenue
34th Floor
New York, NY 10158
Tel: 212-557-7200
Fax: 212 286 1884
Email: rlr@dhclegal.com
About Urban Commons 2 West
Urban Commons 2 West, LLC, a company in Corona Del Mar, Calif., and
its affiliates, filed voluntary petitions for Chapter 11 protection
(Bankr. S.D.N.Y. Lead Case No. 22-11509) on Nov. 15, 2022. At the
time of the filing, Urban Commons 2 West listed as much as $100
million to $500 million in both assets and liabilities.
Judge Philip Bentley oversees the cases.
Davidoff Hutcher & Citron, LLP and Getzler Henrich & Associates,
LLC serve as the Debtor's legal counsel and restructuring advisor,
respectively. Mark Podgainy, a partner at Getzler, is the Debtor's
chief restructuring officer.
VERISTAR LLC: Amends Franklin Data & Nexem-Iconic Secured Claims
----------------------------------------------------------------
Veristar, LLC, and its Debtor Affiliates submitted a Third Amended
Joint Plan of Reorganization dated April 17, 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.
Class 3 consists of the Secured Claim of Franklin Data Ventures,
Inc. and NexemIconic, LLC. The Class 3 Claim, if any, shall be
Allowed in an amount to be determined by the Court, not to exceed
the value of any collateral that secures such Claim, and paid
quarterly from Debtors' Disposable Income without interest (unless
and to the extent the Court determines that the value of the
collateral exceeds the amount of the Class 3 Claim, in which case
interest shall be paid at 7% per annum or such other rate as the
Court determines), with the first such payment due on the first day
of the month that is at least 90 days after the Effective Date. If
the Class 3 Claim is Allowed in an amount, including interest, that
exceeds the total Disposable Income during the Commitment Period,
then payments to the Class 3 Claimant shall continue beyond the
Commitment Period until paid in full.
Any Deficiency Claim shall be included in and treated under Class
4. If the Class 3 Claimant elects to be treated under Section
1111(b) of the Code and such election is determined by the Court to
be valid, timely, and of consequential value, then the secured
portion of such Claim shall be paid in full with interest and any
unsecured portion shall be paid in full over 20 years (or such
other period as the Court determines) without interest.
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.
Membership interests in and ownership of the Debtors shall remain
unaltered.
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.
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. If the Court fixes the Commitment Period beyond 3
years, then the budget projections for year 3 shall apply to any
such additional period.
A full-text copy of the Third Amended Joint Plan dated April 17,
2023 is available at https://bit.ly/41lNPBa 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.
VPR BRANDS: Swings to $204K Net Loss in 2022
--------------------------------------------
VPR Brands, LP has filed with the Securities and Exchange
Commission its Annual Report on Form 10-K disclosing a net loss of
$203,697 on $4.93 million of revenues for the year ended Dec. 31,
2022, compared to net income of $127,174 on $6.22 million of
revenues for the year ended Dec. 31, 2021.
As of Dec. 31, 2022, the Company had $1.63 million in total assets,
$3.95 million in total liabilities, and a total partners' deficit
of $2.32 million.
Los Angeles, California-based Kreit & Chiu CPA's LLP, the Company's
auditor since 2022, issued a "going concern" qualification in its
report dated April 13, 2023, citing that the Company has an
accumulated deficit of $10,418,696 and a working capital deficit of
$1,938,476 at Dec. 31, 2022. These factors, among others, raise
substantial doubt regarding the Company's ability to continue as a
going concern.
A full-text copy of the Form 10-K is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1376231/000121390023029512/f10k2022_vprbrands.htm
About VPR Brands
Headquartered in Ft. Lauderdale, FL, VPR Brands, LP --
http://www.VPRBrands.com-- is company engaged in the electronic
cigarette and personal vaporizer business.
VYCOR MEDICAL: Incurs $405K Net Loss in 2022
--------------------------------------------
Vycor Medical, Inc. has filed with the Securities and Exchange
Commission its Annual Report on Form 10-K disclosing a net loss of
$404,917 on $1.22 million of revenue for the year ended Dec. 31,
2022, compared to a net loss of $435,662 on $1.39 million of
revenue for the year ended Dec. 31, 2021.
As of Dec. 31, 2022, the Company had $860,178 in total assets,
$3.80 million in total liabilities, and a total stockholders'
deficiency of $2.94 million.
Hackensack, New Jersey-based Prager Metis CPAs, LLC, the Company's
auditor since 2018, issued a "going concern" qualification in its
report dated April 14, 2023, citing that the Company has incurred
net losses since inception, including a net loss of $404,917 and
$435,662 for the years ended December 31, 2022 and 2021
respectively, and has not generated sufficient cash flows from its
operations. As of December 31, 2022, the Company had working
capital deficiency of $551,433, excluding related party liabilities
of $2,585,600. These factors, among others, raise substantial
doubt regarding the Company's ability to continue as a going
concern.
A full-text copy of the Form 10-K is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/0001424768/000149315223012257/form10-k.htm
About Vycor Medical
Vycor Medical, Inc. (OTCQB: VYCO) -- http://www.vycormedical.com--
is dedicated to providing the medical community with innovative and
superior surgical and therapeutic solutions. The company has a
portfolio of FDA cleared medical solutions that are changing and
improving lives every day. The company operates two business
units: Vycor Medical and NovaVision, both of which adopt a
minimally or non-invasive approach.
WAMU COMMERCIAL 2007-SL3: Moody's Ups Rating on Cl. H Certs to Ba2
------------------------------------------------------------------
Moody's Investors Service has upgraded the ratings on two classes
and affirmed the ratings on two classes in WaMu Commercial Mortgage
Securities Trust 2007-SL3 as follows:
Cl. G, Upgraded to Baa1 (sf); previously on Jun 10, 2022 Upgraded
to Baa3 (sf)
Cl. H, Upgraded to Ba2 (sf); previously on Jun 10, 2022 Upgraded to
B1 (sf)
Cl. J, Affirmed Caa3 (sf); previously on Jun 10, 2022 Affirmed Caa3
(sf)
Cl. K, Affirmed C (sf); previously on Jun 10, 2022 Affirmed C (sf)
RATINGS RATIONALE
The ratings on two P&I classes, Cl. G and Cl. H, were upgraded
based primarily on an increase in credit support resulting from
loan paydowns and amortization. The deal has paid down 9.1% since
Moody's last review and 97.3% since securitization.
The ratings on two P&I classes, Cl. J and Cl. K, were affirmed
because the ratings are consistent with Moody's expected loss plus
realized losses. Class K has already experienced a 77% loss from
previously liquidated loans.
Moody's rating action reflects a base expected loss of 6.1% of the
current pooled balance, compared to 4.7% at Moody's last review.
Moody's base expected loss plus realized losses is now 3.9% of the
original pooled balance, the same as the last review.
FACTORS THAT WOULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS:
The performance expectations for a given variable indicate Moody's
forward-looking view of the likely range of performance over the
medium term. Performance that falls outside the given range can
indicate that the collateral's credit quality is stronger or weaker
than Moody's had previously expected. Additionally, significant
changes in the 5-year rolling average of 10-year US Treasury rates
will impact the magnitude of the interest rate adjustment and may
lead to future rating actions.
Factors that could lead to an upgrade of the ratings include a
significant amount of loan paydowns or amortization, an increase in
the pool's share of defeasance or an improvement in pool
performance.
Factors that could lead to a downgrade of the ratings include a
decline in the performance of the pool, loan concentration, an
increase in realized and expected losses from specially serviced
and troubled loans or interest shortfalls.
METHODOLOGY UNDERLYING THE RATING ACTION
The principal methodology used in these ratings was "US and
Canadian Conduit/Fusion Commercial Mortgage-Backed Securitizations
Methodology" published in July 2022.
DEAL PERFORMANCE
As of the March 23, 2023 distribution date, the transaction's
aggregate certificate balance has decreased by 97.3% to $34.1
million from $1.28 billion at securitization. The certificates are
collateralized by 71 mortgage loans ranging in size from less than
1% to 7.8% of the pool, with the top ten loans constituting 35.6%
of the pool.
Moody's uses a variation of Herf to measure the diversity of loan
sizes, where a higher number represents greater diversity. Loan
concentration has an important bearing on potential rating
volatility, including the risk of multiple notch downgrades under
adverse circumstances. The credit neutral Herf score is 40. The
pool has a Herf of 42, compared to 45 at Moody's last review.
As of the March 2023 remittance report, loans representing 100%
were current or within their grace period on their debt service
payments. Seven loans, representing 12.1% of the pool, indicate the
borrower has received loan modifications.
Twenty-two loans, constituting 37.9% of the pool, are on the master
servicer's watchlist. The watchlist includes loans that meet
certain portfolio review guidelines established as part of the CRE
Finance Council (CREFC) monthly reporting package. As part of
Moody's ongoing monitoring of a transaction, the agency reviews the
watchlist to assess which loans have material issues that could
affect performance.
One hundred and sixteen loans have been liquidated from the pool,
resulting in an aggregate realized loss of $47.9 million (for an
average loss severity of 31%). No loans are currently in special
servicing. However, Moody's has assumed a high default probability
for nine poorly performing loans, constituting 11.8% of the pool,
and has estimated an aggregate loss of $1.1 million (a 27% expected
loss on average) from these troubled loans.
The credit risk of loans is determined primarily by two factors: 1)
Moody's assessment of the probability of default, which is largely
driven by each loan's DSCR, and 2) Moody's assessment of the
severity of loss upon a default, which is largely driven by each
loan's loan-to-value ratio, referred to as the Moody's LTV or MLTV.
As described in the CMBS methodology used to rate this
transaction, Moody's make various adjustments to the MLTV. Moody's
adjust the MLTV for each loan using a value that reflects
capitalization (cap) rates that are between Moody's sustainable cap
rates and market cap rates. Moody's also use an adjusted loan
balance that reflects each loan's amortization profile. The MLTV
reported in this publication reflects the MLTV before the
adjustments described in the methodology.
Moody's received full year 2021 operating results for 58% of the
pool, and full year 2022 operating results for 17% of the pool.
Moody's weighted average conduit LTV is 84%, compared to 81% at
Moody's last review. Moody's conduit component excludes troubled
loans. Moody's net cash flow (NCF) reflects a weighted average
haircut of 27% to the most recently available net operating income
(NOI). Moody's value reflects a weighted average capitalization
rate of 9.5%.
Moody's actual and stressed conduit DSCRs are 1.49X and 1.53X,
respectively, compared to 1.85X and 1.59X at the last review.
Moody's actual DSCR is based on Moody's NCF and the loan's actual
debt service. Moody's stressed DSCR is based on Moody's NCF and a
9.25% stress rate the agency applied to the loan balance.
[^] Recent Small-Dollar & Individual Chapter 11 Filings
-------------------------------------------------------
In re Duncan Road Academy
Bankr. D. Del. Case No. 23-10445
Chapter 11 Petition filed April 10, 2023
See
https://www.pacermonitor.com/view/3TRO4CA/Duncan_Road_Academy__debke-23-10445__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re The Merry Mart, LLC
Bankr. M.D. Fla. Case No. 23-00773
Chapter 11 Petition filed April 11, 2023
See
https://www.pacermonitor.com/view/SQJHCOY/The_Merry_Mart_LLC__flmbke-23-00773__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re MJW Enterprises, Inc.
Bankr. E.D. Cal. Case No. 23-21171
Chapter 11 Petition filed April 12, 2023
See
https://www.pacermonitor.com/view/MLKGSAY/MJW_Enterprises_Inc__caebke-23-21171__0001.0.pdf?mcid=tGE4TAMA
represented by: John S. Sargetis, Esq.
UNITED LAW CENTER
E-mail: jsargetis@unitedlawcenter.com
In re 414 Vine LLC
Bankr. D.N.J. Case No. 23-13029
Chapter 11 Petition filed April 12, 2023
See
https://www.pacermonitor.com/view/R2QQSHY/414_Vine_LLC__njbke-23-13029__0001.0.pdf?mcid=tGE4TAMA
represented by: Timothy P. Neumann, Esq.
BROEGE, NEUMANN, FISCHER & SHAVER LLC
E-mail: tneumann@bnfsbankruptcy.com
In re MK Shore LLC
Bankr. E.D.N.Y. Case No. 23-41270
Chapter 11 Petition filed April 12, 2023
See
https://www.pacermonitor.com/view/WHBN7BI/MK_Shore_LLC__nyebke-23-41270__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re 47 Spy Glass Hill Corp.
Bankr. S.D.N.Y. Case No. 23-35284
Chapter 11 Petition filed April 12, 2023
See
https://www.pacermonitor.com/view/5HY67OY/47_Spy_Glass_Hill_Corp__nysbke-23-35284__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re City Consulting, LLC
Bankr. M.D. Tenn. Case No. 23-01321
Chapter 11 Petition filed April 12, 2023
See
https://www.pacermonitor.com/view/PMO6HSY/City_Consulting_LLC__tnmbke-23-01321__0001.0.pdf?mcid=tGE4TAMA
represented by: Steven L. Lefkovitz, Esq.
LEFKOVITZ & LEFKOVITZ
E-mail: slefkovitz@lefkovitz.com
In re Justin Ryan George
Bankr. N.D. Fla. Case No. 23-50061
Chapter 11 Petition filed April 13, 2023
represented by: Samantha Kelley, Esq.
In re DigitalXmedia, LLC
Bankr. N.D. Ga. Case No. 23-53526
Chapter 11 Petition filed April 13, 2023
See
https://www.pacermonitor.com/view/6E4LDTA/DigitalXmedia_LLC__ganbke-23-53526__0001.0.pdf?mcid=tGE4TAMA
represented by: Will Geer, Esq.
ROUNTREE, LEITMAN, KLEIN & GEER, LLC
E-mail: wgeer@rlkglaw.com
In re Terri Charmaine Ridgeway and Charles D. Ridgeway
Bankr. N.D. Ga. Case No. 23-53527
Chapter 11 Petition filed April 13, 2023
represented by: William Rountree, Esq.
In re Allstate Multi-Services, LLC
Bankr. E.D.N.Y. Case No. 23-41276
Chapter 11 Petition filed April 13, 2023
See
https://www.pacermonitor.com/view/USXNUJI/Allstate_Multi-Services_LLC__nyebke-23-41276__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re T. Jones Trucking, LLC
Bankr. M.D. Fla. Case No. 23-01392
Chapter 11 Petition filed April 14, 2023
See
https://www.pacermonitor.com/view/HZMEDYQ/T_Jones_Trucking_LLC__flmbke-23-01392__0001.0.pdf?mcid=tGE4TAMA
represented by: Jeffrey S. Ainsworth, Esq.
BRANSONLAW, PLLC
E-mail: jeff@bransonlaw.com
In re 379 Union Street LLC
Bankr. D. Mass. Case No. 23-10580
Chapter 11 Petition filed April 14, 2023
See
https://www.pacermonitor.com/view/KASBFFY/379_Union_Street_LLC__mabke-23-10580__0001.0.pdf?mcid=tGE4TAMA
represented by: David B. Madoff, Esq.
MADOFF & KHOURY LLP
E-mail: alston@mandkllp.com
In re Prime Painters, LLC
Bankr. N.D. Ga. Case No. 23-20430
Chapter 11 Petition filed April 14, 2023
See
https://www.pacermonitor.com/view/DULW35Q/Prime_Painters_LLC__ganbke-23-20430__0001.0.pdf?mcid=tGE4TAMA
represented by: William Rountree, Esq.
ROUNTREE, LEITMAN, KLEIN & GEER, LLC
E-mail: wrountree@rlkglaw.com
In re Torre Weylin Lemacio Martin
Bankr. N.D. Ga. Case No. 23-53544
Chapter 11 Petition filed April 14, 2023
In re Orale Motor Sport, LLC
Bankr. S.D. Tex. Case No. 23-31369
Chapter 11 Petition filed April 14, 2023
See
https://www.pacermonitor.com/view/H235UTA/Orale_Motor_Sport_LLC__txsbke-23-31369__0001.0.pdf?mcid=tGE4TAMA
represented by: Reese Baker, Esq.
BAKER & ASSOCIATES
E-mail: courtdocs@bakerassociates.net
In re Ryan Magdi Girgis
Bankr. C.D. Cal. Case No. 23-12276
Chapter 11 Petition filed April 17, 2023
represented by: David Haberbush, Esq.
In re Z News Service, Inc.
Bankr. D. Del. Case No. 23-10470
Chapter 11 Petition filed April 17, 2023
See
https://www.pacermonitor.com/view/M3KZM5A/Z_News_Service_Inc__debke-23-10470__0001.0.pdf?mcid=tGE4TAMA
represented by: Frederick B. Rosner, Esq.
THE ROSNER LAW GROUP LLC
E-mail: rosner@teamrosner.com
In re KAF Recycling Corp
Bankr. S.D. Fla. Case No. 23-12973
Chapter 11 Petition filed April 17, 2023
See
https://www.pacermonitor.com/view/35W5SCI/KAF_Recycling_Corp__flsbke-23-12973__0001.0.pdf?mcid=tGE4TAMA
represented by: Jacqueline Calderin, Esq.
AGENTIS PLLC
E-mail: jc@agentislaw.com
In re Bourbon Energy, LLC
Bankr. E.D. La. Case No. 23-10569
Chapter 11 Petition filed April 17, 2023
See
https://www.pacermonitor.com/view/6EZRLQA/Bourbon_Energy_LLC__laebke-23-10569__0001.0.pdf?mcid=tGE4TAMA
represented by: Robert L. Marrero, Esq.
ROBERT L. MARRERO, L.L.C.
E-mail: office@bobmarrero.com
In re 3876 Carrel LLC
Bankr. E.D.N.Y. Case No. 23-71296
Chapter 11 Petition filed April 17, 2023
See
https://www.pacermonitor.com/view/3OH4HCY/3876_Carrel_LLC__nyebke-23-71296__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Stanford Sonoma Corp.
Bankr. N.D. Tex. Case No. 23-30748
Chapter 11 Petition filed April 17, 2023
See
https://www.pacermonitor.com/view/VS2HI4Y/Stanford_Sonoma_Corp__txnbke-23-30748__0001.0.pdf?mcid=tGE4TAMA
represented by: Howard Marc Spector, Esq.
SPECTOR & COX, PLLC
E-mail: hms7@cornell.edu
In re Diamond Rental Properties LLC
Bankr. N.D. W.Va. Case No. 23-00186
Chapter 11 Petition filed April 17, 2023
See
https://www.pacermonitor.com/view/O37ILPA/Diamond_Rental_Properties_LLC__wvnbke-23-00186__0001.0.pdf?mcid=tGE4TAMA
represented by: Martin P. Sheehan, Esq.
SHEEHAN & ASSOCIATES, P.L.L.C.
E-mail: martin@msheehanlaw.net
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
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Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
The Sunday TCR delivers securitization rating news from the week
then-ending.
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S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Philadelphia, Pa., USA.
Randy Antoni, Jhonas Dampog, Marites Claro, Joy Agravante,
Rousel Elaine Tumanda, Joel Anthony G. Lopez, Psyche A. Castillon,
Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and
Peter A. Chapman, Editors.
Copyright 2023. All rights reserved. ISSN: 1520-9474.
This material is copyrighted and any commercial use, resale or
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