/raid1/www/Hosts/bankrupt/TCR_Public/230504.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, May 4, 2023, Vol. 27, No. 123
Headlines
2M RESEARCH: Seeks to Hire Joyce W. Lindauer as Bankruptcy Counsel
942 PENN RR: Plan Administrator Taps KapilaMukamal as Accountant
AAD CAPITAL: Court OKs Affiliate's Deal to Extend Cash Access
AEROCARE MEDICAL: Court OKs Cash Collateral Access Thru July 14
AEROCARE MEDICAL: Hits Chapter 11 Bankruptcy Protection
ALLEGIANCE COAL: Taps John T. Boyd Company as Mining Consultant
AMERIMARK INTERACTIVE: Taps Morris Nichols Arsht as Co-Counsel
ANGIE'S TRUCKING: Seeks to Hire Frances Hoit Hollinger as Counsel
ANTHYMTV CO: Taps Haynsworth Sinkler Boyd as Legal Counsel
ARTHROSCOPIC & LASER: Taps Law Office of Donald W. Reid as Counsel
ARU PHARMA: Seeks to Hire The Russell Friedman Law Group as Counsel
ARU PHARMA: Taps Maltz Auctions as Auctioneer and Marketing Agent
ASTRALABS INC: Taps Robert B. Dellenbach as Corporate Counsel
AVENIR MEMORY: Seeks Cash Collateral Access Thru July 31
AVENIR MEMORY: Taps Walker & Dunlop Investment Sales as Broker
AVIS BUDGET: Notes Amendment No Impact on Moody's 'Ba3' Rating
BED BATH & BEYOND: Receives $40 Million to Fund Bankruptcy
BITNILE METAVERSE: Obtains $5.5 Million in Secured Debt Financing
BRANDED HORN: Case Summary & 20 Largest Unsecured Creditors
BUCK-LEITER PALM: Case Summary & Nine Unsecured Creditors
CALAMP CORP: Incurs $32.5 Million Net Loss in FY Ended Feb. 28
CASH CLOUD: Seeks to Tap Baker & Hostetler as Regulatory Counsel
CELSIUS NETWORK: Creditors Want to Unmask Suspicious Crypto Trades
CENPORTS COMMERCE: Files Emergency Bid to Use Cash Collateral
CGEN HOLDINGS: Voluntary Chapter 11 Case Summary
CHICAGO SOUTH LOOP: Hearing Today on Cash Collateral Access
COIN CLOUD: Receives $16.75M Purchase Offer from RockitCoin
CORRIDOR MEDICAL SERVICES: Commences Subchapter V Bankruptcy Case
CORUS ENTERTAINMENT: DBRS Confirms BB Issuer Rating
COSTAR GROUP: S&P Alters Outlook to Stable, Affirms 'BB+' ICR
COTTON WEAVE: Taps Heritage Properties RC as Real Estate Consultant
CURITEC LLC: Wins Interim Cash Collateral Access
CYXTERA TECHNOLOGIES: Board Elects Two New Directors
CYXTERA TECHNOLOGIES: Hires Adviser as Debt Talks Continue
DEVILLE CORP: Wins Interim Cash Collateral Access
DIOCESE OF ROCHESTER: Insurers OK'd to Fight Abuse Claims Coverage
DUNCAN ROAD: Seeks to Hire Hiller Law as Bankruptcy Counsel
E QUALCOM: Seeks to Hire Sobota PL as Special Counsel
ELIZABETH JANE: Seeks to Hire McNamee, Hosea PA as Legal Counsel
EPIC CRUDE: Moody's Assigns B1 Rating to Senior Secured Revolver
FARMHOUSE CREATIVE: Court OKs Cash Collateral Access Thru May 25
FGV FRESNO: Unsecured Creditors to be Paid in Full in Sale Plan
FIELDERS CHOICE: Seeks Cash Collateral Access
FIRST REPUBLIC BANK: S&P Lowers ICR to 'CC', On Watch Negative
FORD CITY RX: Seeks to Hire C. Taylor Crockett as Legal Counsel
FRANKLIN SOUTHERN: Seeks Cash Collateral Access
FTX GROUP: Sells LedgerX to MIAX for $50 Million
GENESIS CAPITAL: Creditors Oppose Bankruptcy Settlement
GOTO GROUP: Lenders Hire Lawyers Due to Restructuring Fears
GUARDIAN FUND: Taps Harris Law Practice as Bankruptcy Counsel
HARVEST MIDSTREAM: S&P Affirms 'BB-' ICR, Outlook Stable
HOVA MANAGEMENT: Taps Magic Home Realty as Real Estate Broker
HUMAN HOUSING: Trustee Seeks to Hire Gray Ice Higdon as Counsel
IDAHO ALLERGY: Taps Michael Jay Berger as Bankruptcy Counsel
INTERNAP HOLDING: Seeks Cash Collateral Access
JBP HOLDINGS: Seeks to Tap Laxmi Sarathy as Bankruptcy Counsel
JDI DATA: Chapter 11 Trustee Taps Bast Amron as Legal Counsel
KEYSTONE GAS: United States Trustee Says Disclosure Inadequate
KINGPRIEST HOLDINGS: Taps Alecia Compton Law Office as Counsel
KOTAI INVESTMENTS: Starts Subchapter V Bankruptcy Proceeding
LANNETT CO: Case Summary & 30 Largest Unsecured Creditors
LANNETT COMPANY: Moody's Cuts CFR & First Lien Secured Notes to C
LOYALTY VENTURES: Joint Plan Confirmed by Judge
LTL MANAGEMENT: Talc Claimants Want Bankruptcy Tossed for 2nd Time
M7VEN SUPPORTIVE: Taps Theodore N. Stapleton P.C. as Legal Counsel
MEDICAL CENTER: Seeks to Tap C. Taylor Crockett as Legal Counsel
MOUNTAIN EXPRESS: Court OKs $37.8MM DIP Loan from First Horizon
NEW HAVEN TRUCK: Seeks Cash Collateral Access
OMNIA PARTNERS: Moody's Assigns 'B2' CFR, Outlook Stable
OZ NATURALS LLC: Seeks to Hire Wernick Law as Bankruptcy Counsel
PACIFIC BEND: Court OKs Final Cash Collateral Access
PACIFIC POURHOUSE: Seeks Cash Collateral Access
PHOENIX BUILDING: SARE Seeks Chapter 11 Bankruptcy
POLK AZ: Seeks Cash Collateral Access
PRECISION FORGING: Taps Goe Forsythe & Hodges as Legal Counsel
PRESTON URGENT: Taps Sheehan & Associates as Legal Counsel
PROFESSIONAL CHARTER: Wins Interim Cash Collateral Access
PROTECH METALS: Seeks Cash Collateral Access
PSG MORTGAGE: Case Summary & Two Unsecured Creditors
PUERTO RICO: Lack of Consensus Could Force PREPA Case Dismissal
RED HAT: New Equity Contribution & Store Lease to Fund Plan
RENNASENTIENT INC: Court OKs Interim Cash Collateral Access
RFS INVESTMENT: Seeks to Hire RHM Law as Bankruptcy Counsel
SAN FRANCISCO ART INSTITUTE: Files for Chapter 7 Bankruptcy
SORRENTO THERAPEUTICS: Scilex Stock Shares Restrictions Extended
SOURCEWATER INC: Taps KenWood & Associates as Accountant
STOWERS TRUCKING: Unsecureds Will Get 5% of Claims in Plan
SVB FINANCIAL: Stuck in Bankruptcy Stalemate With FDIC
SYNEOS HEALTH: Moody's Affirms Ba2 CFR & Alters Outlook to Negative
TALKING TADPOLES: Seeks Cash Collateral Access
TAMPA HYDE: Unsecureds Will Get 100% of Claims in 36 Months
TENET HEALTHCARE: S&P Rates New $1.35BB Senior Secured Debt 'BB-'
TRUCK DYNASTY: Files Emergency Bid to Use Cash Collateral
TUESDAY MORNING: Moves to Liquidating More Stores
TUESDAY MORNING: Urged by Judge to Resolve Issues With Lender
TURBO COMPONENTS: Seeks Cash Collateral Access
UBO-TECHNOLOGIES: Hits Chapter 11 Bankruptcy Protection
UNIQUE FREIGHT LINES: Starts Subchapter V Bankruptcy Case
VBI VACCINES: Regains Compliance With Nasdaq Bid Price Requirement
VINTAGE WEST: Case Summary & 20 Largest Unsecured Creditors
VISTEON CORP: S&P Alters Outlook to Positive, Affirms 'BB-' ICR
WEWORK COS: S&P Cuts ICR to 'SD' Following Distressed Exchange
[*] Two Hospital Bankruptcies From California in 2023
[^] Recent Small-Dollar & Individual Chapter 11 Filings
*********
2M RESEARCH: Seeks to Hire Joyce W. Lindauer as Bankruptcy Counsel
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2M Research Services LLC seeks approval from the U.S. Bankruptcy
Court for the Northern District of Texas to employ Joyce W.
Lindauer Attorney, PLLC as its counsel.
The Debtor requires legal assistance to effectuate a
reorganization, propose a plan of reorganization, and effectively
move forward in its Chapter 11 bankruptcy proceeding.
The hourly rates of the firm's attorneys and staff are as follows:
Joyce W. Lindauer, Esq. $475
Sydney Ollar, Associate Attorney $250
Larry Boyd, Law Clerk $235
Dian Gwinnup, Paralegal $210
In addition, the firm will seek reimbursement for out-of-pocket
expenses incurred.
Prior to the petition date, the firm received a retainer of
$25,000.
Joyce Lindauer, Esq., the owner of the firm, disclosed in a court
filing that the firm is a "disinterested person" as defined in
Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Joyce W. Lindauer, Esq.
Joyce W. Lindauer Attorney, PLLC
1412 Main Street, Suite 500
Dallas, TX 75202
Telephone: (972) 503-4033
Facsimile: (972) 503-4034
Email: joyce@joycelindauer.com
About 2M Research Services
2M Research Services, LLC, a company in Mansfield, Texas, sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
N.D. Texas Case No. 23-40271) on Jan. 30, 2023. In the petition
signed by Marcus Martin, manager and member, the Debtor disclosed
up to $10 million in both assets and liabilities.
Judge Mark X. Mullin oversees the case.
Joyce W. Lindauer Attorney, PLLC represents the Debtor as legal
counsel.
942 PENN RR: Plan Administrator Taps KapilaMukamal as Accountant
----------------------------------------------------------------
Barry Mukamal, the plan administrator of 942 Penn RR, LLC's estate,
received approval from the U.S. Bankruptcy Court for the Southern
District of Florida to tap his own firm, KapilaMukamal LLP, as
accountant.
The Chapter 11 plan of liquidation, which was confirmed by the
court on March 28, provides for the employment of KapilaMukamal as
accountant to the plan administrator and the post-confirmation
estate. KapilaMukamal provided accounting services to Mr. Mukamal
while he was serving as the Debtor's Chapter 11 trustee.
The firm's services include:
a. the review and analysis of the Debtor's and estate's
accounting records;
b. forensic analysis and support, if necessary;
c. litigation support, if necessary;
d. expert reports and testimony, if necessary;
e. computer and IT analysis, investigation and support, if
necessary
f. preparation of tax returns; and
g. other ordinary or necessary accounting, financial and
forensic-related services required in the administration of the
estate.
KapilaMukamal will be paid at its normal hourly rates and
reimbursed for out-of-pocket expenses incurred.
Mr. Mukamal 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:
Barry E. Mukamal, CPA
KapilaMukamal, LLC
1000 South Federal Highway, Suite 200
Ft. Lauderdale, FL 33316
Office: (954) 761-1011
Direct: 786-517-5730
Email: bmukamal@kapilamukamal.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
served as the trustee's legal counsel and accountant,
respectively.
On March 28, 2023, the court confirmed the Chapter 11 plan of
liquidation filed by Mr. Mukamal for the Debtor. Mr. Mukamal was
appointed as plan administrator of the Debtor's post-confirmation
estate.
The plan administrator tapped Bast Amron as legal counsel and
KapilaMukamal as accountant.
AAD CAPITAL: Court OKs Affiliate's Deal to Extend Cash Access
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Georgia,
Atlanta Division, authorized Market Street Shreveport LLC, an
affiliate of AAD Capital Partners LLC, to continue using cash
collateral on a final basis in accordance with its agreement with
Arena Limited SPV LLC, through September 20, 2023.
Unless otherwise stipulated in writing by Arena, in its sole and
absolute discretion, the "Termination Date" will occur
automatically without further Court Order on the earliest to occur
of: (i) September 30, 2023; (ii) the fifth business day after the
Debtor receives written notice of an Event of Default and has
failed to cure such default; and (iii) the date of any final
hearing on any motion that the Debtor files to use Arena's cash
collateral following the entry of the Order.
These events constitute an "Event of Default":
(a) The Debtor's breach of any provision, term or condition of
the Order, including without limitation the Debtor's failure to pay
its Indebtedness to Arena in full by September 30, 2023, or any
extension of that date, failure to timely provide the financial
information, reports, comply with the Budget or provide any other
reasonable information requested by Arena;
(b) The Debtors' breach of any provision, term, or condition
of the settlement agreement entered into, or to be entered into,
memorializing the settlement terms agreed to by Arena and the
Debtors (and others) at the mediation of this case held on March
28, 2023; or
(c) The conversion or dismissal of the Debtor's Chapter 11
case, or the appointment of a trustee or examiner in the Debtors'
Chapter 11 case.
As additional adequate protection, in addition to the Replacement
Lien, the Debtor will pay to Arena the sum of $45,000 in cash on or
before the fifth business day of each month commencing December 1,
2022, which will be applied by Arena to reduce the Indebtedness;
provided that the Adequate Protection Payments will be increased up
to a maximum amount of $60,000 per month if and to the extent that
the Debtors' operating budget merits an increase for any month
until the Termination Date. In the event the Termination Date is
extended beyond September 30, 2023, pursuant to the terms of the
Order, Arena will have the right to seek an increase in the amount
of the monthly adequate protection payments and any other
appropriate adequate protection in addition to the adequate
protection provided by the Order.
A copy of the Court's order is available at https://bit.ly/3LhibOp
from PacerMonitor.com.
About AAD Capital Partners
AAD Capital Partners LLC, doing business as Peachtree Battle
Business Services, is a domestic limited liability company.
AAD Capital Partners LLC filed a petition for relief under Chapter
11 of the Bankruptcy Code (Bankr. N.D. Ga. Case No. 22-58223) on
Oct. 12, 2022. In the petition filed by Edward Chen, as managing
member and owner, the Debtor reported assets and liabilities
between $10 million and $50 million.
Judge James R. Sacca oversees the case.
The Debtor is represented by Ashley Reynolds Ray, Esq., at
Scroggins & Williamson, P.C.
Arena Limited SPV, LLC, as secured creditor, is represented by Eric
W. Anderson, Esq., at Parker Hudson Rainer & Dobbs, LLP and R.
Joseph Naus, Esq. at Wiener, Weiss & Madison, a Professional
Corporation.
AEROCARE MEDICAL: Court OKs Cash Collateral Access Thru July 14
---------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Arizona authorized
Aerocare Medical Transport System, Inc. to use cash collateral on
an interim basis in accordance with the budget, with a 5% variance,
through July 14, 2023.
On June 12, 2019, the Debtor issued to First Fidelity Bank a
Promissory Note in the principal amount of $1.2 million, as
evidenced by the Promissory Note and a Business Loan Agreement. The
FFB Loan had an original maturity date of September 6, 2019. The
maturity date on the FFB Loan was extended by several Forbearance
and Modification Agreements. The FFB Loan is secured by valid and
properly perfected blanket liens on and security interests in
essentially all of the Debtor's assets.
As of the Petition Date, the balance due and owing under the FFB
Loan is approximately $407,492, plus accrued and accruing interest,
fees, and costs including attorneys' fees and costs. As of the
Petition Date, the Debtor is current on its interest payments under
the FFB Loan.
The Debtor has submitted an emergency request to use FFB's cash
collateral for the next 13-week period through and including July
14, 2023, to continue operating its business and facilitate the
filing of a plan of reorganization with the Court.
The Debtor's interim right to use the cash collateral will cease
and terminate immediately, and without further notice, upon the
earliest of:
(i) July 15, 2023;
(ii) any event of default under the Order;
(iii) the Debtor obtaining interim debtor-in-possession
financing from any party not affiliated with FFB;
(iv) the closing of an asset sale under 11 U.S.C. section 363;
(v) entry of an order converting the case to a case under
Chapter 7 of the U.S. Bankruptcy Code;
(vi) entry of an order confirming a plan of reorganization; or
(vii) the termination, expiration, lapse, or reduction of
insurance coverage on any assets of the Debtor.
As adequate protection, FFB is granted valid and perfected security
interests and liens in and on all of Debtors' interests in any
property acquired after the Petition Date of the type described as
FFB's collateral in the applicable loan and security documents,
including all proceeds therefrom. The Replacements Liens granted to
FFB will: (i) secure repayment of the FFB indebtedness limited by
the amount of cash collateral used by Debtor from and after the
Petition Date; (ii) be evidenced by the existing Loan Documents and
the Order; and (iii) have the same validity and priority as FFB's
existing liens and security interest s in the cash collateral and
other collateral.
A copy of the Court's order and the Debtor's budget is available at
https://bit.ly/429vTtp from PacerMonitor.com.
The Debtor projects total expenses, on a weekly basis, as follows:
$5,730 for the week ending May 5, 2023;
$41,050 for the week ending May 12, 2023;
$4,800 for the week ending May 19, 2023; and
$51,750 for the week ending May 26, 2023.
About Aerocare Medical Transport System, Inc.
Aerocare Medical Transport System, Inc. is a nationally recognized
and accredited provider of worldwide air ambulance and medevac
services.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Ariz. Case No. 23-02376) on April 13,
2023. In the petition signed by Joseph Cece, president, the Debtor
disclosed $1,485,981 in assets and $3,108,797 in liabilities.
James E. Cross, Esq., at Cross Law Firm, PLC, represents the Debtor
as legal counsel.
AEROCARE MEDICAL: Hits Chapter 11 Bankruptcy Protection
-------------------------------------------------------
Aerocare Medical Transport System Inc. filed for chapter 11
protection in the District of Arizona without stating a reason.
The Debtor elected on its voluntary petition to proceed under
Subchapter V of chapter 11 of the Bankruptcy Code.
According to court filings, Aerocare Medical Transport System Inc.
has $3,108,797 in debt to 1 to 49 creditors. First Fidelity Bank
is owed $407,492 on a secured promissory note.
The petition states that funds will be available to unsecured
creditors.
About Aerocare Medical Transport System
Aerocare Medical Transport System Inc. is a nationally recognized
and accredited provider of worldwide air ambulance and medevac
services.
Aerocare Medical Transport System Inc. filed a petition for relief
under Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. D.
Ariz. Case No. 23-02376) on April 13, 2023. In the petition filed
by Joseph Cece, as president, the Debtor reported total assets of
$1,485,981 and total liabilities of $3,108,797.
The Debtor is represented by:
James E Cross, Esq.
Cross Law Firm, PLC
1936 E. Missouri Ave.
Pheonix, AZ 85016
ALLEGIANCE COAL: Taps John T. Boyd Company as Mining Consultant
---------------------------------------------------------------
Allegiance Coal USA Limited and its affiliates seek approval from
the U.S. Bankruptcy Court for the District of Delaware to employ
John T. Boyd Company as mining and geological consultant.
The firm will conduct an independent review of the mining
operations and business plans prepared by the Debtors for their
mines located in Colorado and Alabama. Such review will involve
confirming economic mining viability, opining on the Debtors'
mining costs, productivity, mining plans, capex, and financial
model, and vetting the Debtors' business plans and operating
assumptions.
The firm will be paid at these rates:
Principal/Managing Director $400 per hour
Vice President $350 per hour
Executive Consultant $325 per hour
Project Manager/Principal Engineer $325 per hour
Senior Engineer/Director/Consultant $270 per hour
Senior Transportation Analyst $270 per hour
Senior Market Analyst $270 per hour
Senior Geologist $210 per hour
Engineer/Geologist/Consultant $180 per hour
Technical Specialist $130 per hour
Technical Assistant/Sr. CAD $120 per hour
Draftsman/CAD $90 per hour
Clerical $60 per hour
In addition, the firm will receive reimbursement for out-of-pocket
expenses incurred.
As disclosed in court filings, John T. Boyd Company is a
"disinterested person" within the meaning of Section 101(14) of the
Bankruptcy Code.
The firm can be reached at:
John T. Boyd Company
4000 Town Center Blvd., Suite 300
Canonsburg, PA 15317
Tel: (724) 873-4400
Fax: (724) 873-4401
Email: jtb-web@jtboyd.com
About Allegiance Coal USA Limited
Allegiance Coal USA Limited is a listed Australian company focused
on seaborne met coal mine development and operations, with
operating mines in southeast Colorado, central Alabama, as well as
a development project in northwest British Columbia. The company is
based in Weston, Colo.
Allegiance and its affiliates sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 23-10234) on
Feb. 21, 2023. In the petition signed by its chief executive
officer, Jonathan Romcke, Allegiance disclosed up to $100 million
in assets and up to $50 million in liabilities.
Judge Craig T. Goldblatt oversees the cases.
The Debtors tapped Robert J. Dehney, Esq., at Morris, Nichols,
Arsht & Tunnell, LLP as bankruptcy counsel and CRS Capstone
Partners, LLC as investment banker and financial advisor.
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases. The
committee is represented by Whiteford Taylor & Preston, LLP.
AMERIMARK INTERACTIVE: Taps Morris Nichols Arsht as Co-Counsel
--------------------------------------------------------------
Amerimark Interactive, LLC and its affiliates seek approval from
the U.S. Bankruptcy Court for the District of Delaware to employ
Morris Nichols Arsht & Tunnell, LLP as co-counsel with McDonald
Hopkins, LLC.
The firm's services include:
a. performing all necessary services as the Debtors' bankruptcy
co-counsel, including, without limitation, providing the Debtors
with advice, representing the Debtors, and preparing necessary
documents in the areas of restructuring and bankruptcy;
b. taking all necessary actions to protect and preserve the
Debtors' estates during their Chapter 11 cases, including the
prosecution of actions by the Debtors, the defense of any actions
commenced against the Debtors, negotiations concerning litigation
in which the Debtors are involved and objecting to claims filed
against the estate;
c. preparing or coordinating the preparation of legal papers in
connection with the administration of the bankruptcy cases;
d. advising the Debtors with regard to their rights and
obligations;
e. coordinating with other professionals in representing the
Debtors in their bankruptcy cases; and
f. other necessary legal services.
Morris will be paid at these rates:
Partners $825 to $1,595 per hour
Associates/Special Counsel $505 to $915 per hour
Paraprofessionals $375 to $395 per hour
Case Clerks $195 per hour
In addition, the firm will receive reimbursement for out-of-pocket
expenses incurred.
The firm received retainers in the total amount of $145,000.
Derek Abbott, Esq., a partner at Morris, 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.
In accordance with Appendix B-Guidelines for reviewing fee
applications filed by attorneys in larger Chapter 11 cases, Morris
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: The firm was retained by the Debtors pursuant to the
Engagement Agreement dated April 4, 2023. The material terms of the
pre-bankruptcy restructuring engagement are the same as the terms
currently proposed by the firm. For work performed for the Debtors
in 2023, Morris' hourly rates are as follows: $825 to $1,595 for
partners, $505 to $915 for associates and special counsel, $375 to
$395 for paraprofessionals, and $195 for case clerks.
Response: Not applicable.
Question: Has your client approved your prospective budget and
staffing plan, and, if so for what budget period?
Response: The court approved a budget on an interim basis for
the firm's engagement.
Morris can be reached at:
Derek C. Abbott, Esq.
Morris Nichols Arsht & Tunnell, LLP
1201 North Market Street, 16th Floor
Wilmington, DE 19899-1347
Tel: (302) 351-9357
Fax: (302) 593-4729
Email: dabbott@morrisnichols.com
About Amerimark Interactive
AmeriMark Interactive, LLC is a direct marketer of women's apparel,
shoes, name-brand cosmetics, fragrances, jewelry, watches,
accessories, and other related products. It is based in Cleveland,
Ohio.
AmeriMark Interactive and affiliates sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case
No. 23-10438) on April 11, 2023. In the petition signed by its
chief restructuring officer, Stuart Noyes, AmeriMark Interactive
disclosed up to $50,000 in assets and $100 million to $500 million
in liabilities.
Judge Thomas M. Horan oversees the cases.
The Debtors tapped McDonald Hopkins, LLC and Morris, Nichols, Arsht
and Tunnell, LLP as bankruptcy counsels; Riveron Management
Services, LLC as restructuring advisor; and Consensus Advisory
Services, LLC and Consensus Securities, LLC as investment bankers.
Stretto Inc. is the notice, claims and balloting agent and
administrative advisor.
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
Cheryl Santaniello, Esq., is the committee's attorney.
ANGIE'S TRUCKING: Seeks to Hire Frances Hoit Hollinger as Counsel
-----------------------------------------------------------------
Angie's Trucking, Inc. seeks approval from the U.S. Bankruptcy
Court for the Southern District of Alabama to employ Frances Hoit
Hollinger, Esq., an attorney practicing in Ala., to handle its
Chapter 11 case.
Mr. Hollinger will render these services:
(a) take appropriate action with respect to secured and
priority creditors;
(b) take appropriate action with respect to possible voidable
preferences and transfers;
(c) prepare legal papers;
(d) investigate the accounts of the Debtor and the financial
transactions related thereto; and
(e) perform all other legal services which may be deemed
necessary.
Mr. Hollinger has agreed to represent the Debtor at an hourly rate
of $250, plus expenses.
The attorney disclosed in a court filing that he is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The attorney can be reached at:
Frances Hoit Hollinger, Esq.
Frances Hoit Hollinger, LLC
P.O. Box 2028
Mobile, AL 36652
Telephone: (251) 432-8878
Facsimile: (251) 410-6159
About Angie's Trucking
Angie's Trucking, Inc. filed a petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. S.D. Ala. Case No. 23-10912) on
April 24, 2023, with as much as $1 million in both assets and
liabilities. Judge Jerry C. Oldshue oversees the case.
Frances Hoit Hollinger, Esq., serves as the Debtor's counsel.
ANTHYMTV CO: Taps Haynsworth Sinkler Boyd as Legal Counsel
----------------------------------------------------------
AnthymTV Co. seeks approval from the U.S. Bankruptcy Court for the
District of South Carolina to employ Haynsworth Sinkler Boyd, P.A.
to serve as legal counsel in its Chapter 11 case.
Haynsworth will be paid at these rates:
Stanley H. McGuffin, Attorney/Partner $450 per hour
Mary Caskey, Attorney/Partner $425 per hour
Carol A. Williamson, Paralegal $170 per hour
In addition, the firm will receive reimbursement for out-of-pocket
expenses incurred.
The firm received a retainer in the amount of $15,126.
As disclosed in court filings, Haynsworth is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Stanley H. McGuffin, Esq.
Haynsworth Sinkler Boyd, P.A.
P.O. Box 11889
Columbia, SC 29211
Tel: (803) 779-3080
Fax: (803) 765-1243
Email: smcguffin@hsblawfirm.com
About AnthymTV Co.
AnthymTV Co. is a corporation formed and existing under the laws of
the State of Delaware with its current operations located in
Wellesley, Mass. AnthymTV was founded by Nick Cartier, the
company's chief executive officer and current sole employee. The
company conducts business under the name Anthym Technologies.
On Feb. 15, 2023, creditors W. Reid Sanders, Sr., R. Reid Sanders,
Jr., Doug Edwards, and Michael O'Keefe filed an involuntary
petition against AnthymTV in the U.S. Bankruptcy Court for the
District of South Carolina (Bankr. D.S.C. Case No. 23-00438),
seeking entry of an order for relief commencing a Chapter 7
bankruptcy case.
On March 3, 2023, AnthymTV filed a voluntary petition under
Subchapter V of Chapter 11 in the U.S. Bankruptcy Court for the
District of Massachusetts (Bankr. D. Mass. Case No. 23-10324).
The creditors filed a motion to determine venue is proper in the
District of South Carolina on March 9, 2023, which was opposed by
AnthymTV. Following a hearing on March 21, 2023, the bankruptcy
court granted the motion on March 31, 2023, and determined venue to
be proper in the District of South Carolina. The bankruptcy court
also ordered that the two cases be consolidated and proceed in the
District of South Carolina as a Chapter 11, Subchapter V case.
Judge Elisabetta Gm Gasparini oversees the Subchapter V case.
Stanley H. McGuffin, Esq., at Haynsworth Sinkler Boyd, P.A. serves
as AnthymTV's legal counsel.
ARTHROSCOPIC & LASER: Taps Law Office of Donald W. Reid as Counsel
------------------------------------------------------------------
Arthroscopic & Laser Surgery Center of San Diego, L.P. received
approval from the U.S. Bankruptcy Court for the Southern District
of California to employ the Law Office of Donald W. Reid as
co-counsel with Bankruptcy Law Center, APC.
The Debtor requires legal counsel to:
a. prepare pleadings and applications and conduct examinations
incidental to administration of the Debtor's Chapter 11 case;
b. advise the Debtor with respect to its rights, powers, duties
and obligations in the administration of the case, the management
of its financial affairs and the management of its income and
property;
c. advise the Debtor with respect to compliance with the
requirements of the Office of the U.S. Trustee;
d. advise the Debtor regarding matters of bankruptcy law,
including rights and remedies of the Debtor with respect to its
assets and claims of its creditors, and communicate and negotiate
with such creditors;
e. advise and represent the Debtor in connection with all
applications, motions or complaints for adequate protection,
sequestration, relief from stays, appointment of a trustee or
examiner, and all other similar matters;
f. develop the relationship of the status of the Debtor to the
claims of creditors;
g. assist in the formulation and presentation of a plan pursuant
to Chapter 11 of the Bankruptcy Code;
h. represent the Debtor in any necessary adversary proceedings;
and
i. perform other legal services.
The firm will be paid at the rate of $500 per hour and will be
reimbursed for out-of-pocket expenses incurred.
The Debtor paid the firm an initial retainer of $50,000.
Donald Reid, Esq., a partner at the Law Office of Donald W. Reid,
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:
Donald W. Reid, Esq.
Law Office Of Donald W. Reid
P.O. Box 2227
Fallbrook, CA 92088
Tel: (951) 777-2460
Email: don@donreidlaw.com
About Arthroscopic & Laser Surgery
Center of San Diego
Arthroscopic & Laser Surgery Center of San Diego, L.P. operates an
outpatient care center in San Diego, Calif. It conducts business
under the name Oasis Surgery Center.
Arthroscopic & Laser Surgery Center of San Diego filed its
voluntary petition for Chapter 11 protection (Bankr. S.D. Calif.
Case No. 23-00778) on March 24, 2023, with $471,349 in assets and
$3,234,976 in liabilities. Judge Laura S. Taylor oversees the
case.
The Debtor is represented by the Bankruptcy Law Center and the Law
Office of Donald W. Reid.
ARU PHARMA: Seeks to Hire The Russell Friedman Law Group as Counsel
-------------------------------------------------------------------
Aru Pharma, Inc. seeks approval from the U.S. Bankruptcy Court for
the Southern District of New York to employ The Russell Friedman
Law Group, LLP as special counsel.
The firm will render these services:
(a) continue representing the Debtor in the investigation by
the U.S. Food and Drug Administration (FDA) and the Center for
Disease Control and Prevention (CDC) and recall of certain
allegedly contaminated products distributed by the Debtor and to
represent the Debtor in all resulting actions, collectively
Distributed Product Matters, and related matters;
(b) continue to counsel the Debtor as to how to proceed and
respond to developments in the Distributed Product Matters;
(c) represent Debtor in FDA/CDC interviews;
(d) continue to communicate with FDA regarding recall status
and actions and continue to monitor hotline established to receive
complaints from end users of the product; and
(e) perform such other further legal services for the Debtor
which may be necessary herein.
The hourly rates of the firm's attorneys and staff are as follows:
Partners $600
Senior Associates $550
Associates $450
Senior Paralegals $215
Paralegals $165
The firm received a retainer of $50,000.
Neil Flynn, Esq., an attorney at The Russell Friedman Law Group,
disclosed in a court filing that the firm is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Neil Flynn, Esq.
The Russell Friedman Law Group, LLP
400 Garden City Plaza, Suite 500
Garden City, NY 11530
Telephone: (516) 355-9662
Facsimile: (516) 740-2011
About Aru Pharma
Aru Pharma Inc., a manufacturer of drugs and pharmaceuticals in
Yonkers, N.Y., filed a petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 23-22157) on Feb. 27,
2023. In the petition filed by Rajammal Jayakumar, proposed
executrix of the Estate of Arumugan Jayakumar, the Debtor reported
total assets of $109,091 and total liabilities of $1,409,828.
Judge Sean H. Lane oversees the case.
The Debtor tapped Michael G. Mc Auliffe, Esq., at The Law Office of
Michael G. Mc Auliffe as bankruptcy counsel and Neil Flynn, Esq.,
at The Russell Friedman Law Group, LLP as special counsel.
ARU PHARMA: Taps Maltz Auctions as Auctioneer and Marketing Agent
-----------------------------------------------------------------
Aru Pharma, Inc. seeks approval from the U.S. Bankruptcy Court for
the Southern District of New York to employ Maltz Auctions, Inc. to
assist in the sale of its machinery and equipment.
Maltz Auctions will get a commission in the amount of 10 percent of
the gross sale proceeds, a 10 percent buyer's premium, adding this
amount to the high offer to reflect the total purchase price, which
will then be paid by the successful purchaser. In addition, the
firm will receive reimbursement for work-related expenses.
Richard Maltz, a member of Maltz Auctions, disclosed in a court
filing that his firm is a "disinterested person" as that term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Richard B. Maltz
Maltz Auctions, Inc.
39 Windsor Place
Central Islip, NY 11722
Telephone: (516) 349-7022
Facsimile: (516) 349-0105
About Aru Pharma
Aru Pharma Inc., a manufacturer of drugs and pharmaceuticals in
Yonkers, N.Y., filed a petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 23-22157) on Feb. 27,
2023. In the petition filed by Rajammal Jayakumar, proposed
executrix of the Estate of Arumugan Jayakumar, the Debtor reported
total assets of $109,091 and total liabilities of $1,409,828.
Judge Sean H. Lane oversees the case.
The Debtor tapped Michael G. Mc Auliffe, Esq., at The Law Office of
Michael G. Mc Auliffe as bankruptcy counsel and Neil Flynn, Esq.,
at The Russell Friedman Law Group, LLP as special counsel.
ASTRALABS INC: Taps Robert B. Dellenbach as Corporate Counsel
-------------------------------------------------------------
Astralabs, Inc. seeks approval from the U.S. Bankruptcy Court for
the Western District of Texas to employ the Law Office of Robert B.
Dellenbach, doing business as Dellenbach Venture Counsel Ltd., as
corporate counsel.
The Debtor requires legal advice on matters related to the
corporate and commercial affairs of its business.
The hourly rates of the firm's attorneys and staff are as follows:
Robert B. Dellenbach, Esq. $695
Senior Attorneys $525 - $695
Junior Attorneys $395 - $495
Paralegals/Clerks $150 - $325
In addition, the firm will seek reimbursement for expenses
incurred.
Robert Dellenbach, Esq., principal attorney at Dellenbach Venture
Counsel, disclosed in a court filing that his firm is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
Robert B. Dellenbach, Esq.
Dellenbach Venture Counsel Ltd.
5140 Business Center Dr., Suite 230
Fairfield, CA 94534 USA
Telephone: (415) 326-4511
Facsimile: (415) 737-1434
Email: rob@dellenbach.net
About Astralabs Inc.
Astralabs Inc. -- https://newchip.com/ -- operates an accelerator
program delivered by online curriculum. The Austin-based company
conducts business under the name Newchip.
Astralabs filed a petition for relief under Subchapter V of Chapter
11 of the Bankruptcy Code (Bankr. W.D. Texas Case No. 23-10164) on
March 17, 2023, with $1,763,754 in assets and $4,389,867 in
liabilities. Jack Cartwright, vice president of finance, signed the
petition.
Judge Shad Robinson oversees the case.
The Debtor tapped Robert Chamless Lane, Esq., at The Lane Law Firm,
PLLC as bankruptcy counsel and the Law Office of Robert B.
Dellenbach, doing business as Dellenbach Venture Counsel Ltd., as
corporate counsel.
AVENIR MEMORY: Seeks Cash Collateral Access Thru July 31
--------------------------------------------------------
Avenir Memory Care @ Fayetteville LP asks the U.S. Bankruptcy Court
for the District of Arizona for authority to use cash collateral in
accordance with the budget, with a 10% variance, through July 31,
2023.
The Debtor requires the use of cash collateral to pay its ordinary
and necessary operating expenses, vendors, payroll, taxes and other
general and administrative expenses.
The Debtor owns a memory care facility known as Avenir Memory Care
@ Fayetteville in Fayetville, Arkansas, which is valued at at least
$11.875 million.
The Facility is managed by Avenir Senior Living, LLC, an Arizona
limited liability company, whose principal place of business is
located at 11648 East Shea Blvd., Suite 101, Scottsdale, Arizona,
pursuant to an Operations Management Agreement between the Debtor
and the Facility Manager dated June 20, 2018.
Like many industries, the memory care industry in general, and the
Facility specifically, were significantly adversely affected by the
global COVID-19 pandemic, and the Debtor's operations and revenues
suffered greatly beginning in 2020 and have not yet reached their
pre-COVID levels. The Facility is encumbered by an asserted first
position lien favor of Merchant's Bank of Indiana, whose principal
place of business is in Carmel, Indiana.
The Bank asserts the Debtor owes it the principal amount of $8.4
million pursuant to a Promissory Note dated June 27, 2018, in the
face amount of $8.640 million. The Debtor disputes the amount
asserted to be due to the Bank.
The Bank asserts a blanket lien in all of the Debtor's assets,
including the Facility. The Bank Note has matured and efforts to
reach a forbearance agreement with the Bank have not been
successful.
To avoid the costs associated with defending the receivership
action in the State Court, to prevent a potential foreclosure sale
of the Facility, and to prevent the loss of value that can be used
to, among other things, pay other financial obligations of the
Debtor, the Debtor filed its bankruptcy petition.
The Debtor submits that any creditors asserting a lien in the
Revenues, including the Bank, are and will be adequately protected
by, among other things, the value generated through the Debtor's
continued postpetition operations; and a replacement lien (with
the same validity, extent, and priority as their respective
pre-petition liens) in post-petition Revenues to the extent that
their respective interests in the pre-petition Revenues are
diminished.
A copy of the Debtor's motion and budget is available at
https://bit.ly/3LcImWs from PacerMonitor.com.
The Debtor projects total operating expenses, on a monthly basis,
as follows:
$257,714 for May 2023;
$242,444 for June 2023; and
$253,689 for July 2023.
About Avenir Memory Care @ Fayetteville LP
Avenir Memory Care @ Fayetteville LP owns a memory care facility
known as Avenir Memory Care @ Fayetteville located at 1967 W.
Truckers Drive in Fayetteville, Arkansas. The facility consists of
59 private, furnished units, a full kitchen, dining areas, meeting
rooms and lounging areas.
The Facility currently has 47 units occupied by residents.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Ariz. Case No. 23-02640) on April 25,
2023. In the petition signed by David L. Craik, president and
director of the General and Limited Partners, the Debtor disclosed
up to $50 million in both assets and liabilities.
Judge Brenda Moody Whinery oversees the case.
Philip R. Rudd, Esq., at Sacks Tierney PA, represents the Debtor as
legal counsel.
AVENIR MEMORY: Taps Walker & Dunlop Investment Sales as Broker
--------------------------------------------------------------
Avenir Memory Care @ Knoxville, LP seeks approval from the U.S.
Bankruptcy Court for the District of Arizona to employ Walker &
Dunlop Investment Sales, LLC.
The Debtor needs a real estate broker to assist in the sale of its
memory care facility known as Avenir Memory Care located at 901
Concord Rd. in Knoxville, Tenn.
The broker will earn a commission of 1 percent of the facility's
total purchase price once it is sold.
Richard Lucas, an officer of Walker & Dunlop Investment Sales,
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:
Richard Lucas
Walker & Dunlop Investment Sales, LLC
7272 Wisconsin Avenue, Suite 1300
Bethesda, MD 20814
Telephone: (301) 215-5500
Email: rlucas@walkerdunlop.com
About Avenir Memory Care @ Knoxville
Avenir Memory Care @ Knoxville, LP operates a nursing care facility
in Scottsdale, Ariz.
Avenir Memory Care @ Knoxville filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Ariz.
Case No. 23-02047) on March 31, 2023, with $10 million to $50
million in both assets and liabilities. David L. Craik, president
and director of the General and Limited Partners, signed the
petition.
Judge Brenda Moody Whinery oversees the case.
Philip R. Rudd, Esq., at Sacks Tierney, P.A. represents the Debtor
as counsel.
AVIS BUDGET: Notes Amendment No Impact on Moody's 'Ba3' Rating
--------------------------------------------------------------
Moody's Investors Service announced that the amendment to the
series 2011-4 supplement would not, in and of itself and as of this
point in time, result in a reduction, placement on review for
possible downgrade or withdrawal of Moody's current ratings
assigned to any outstanding series of notes issued by Avis Budget
Rental Car Funding (AESOP) LLC (the issuer), an affiliate of Avis
Budget Car Rental, LLC (Ba3 stable).
Moody's rates the following series of notes issued by the issuer:
the series 2018-1 notes, the series 2018-2 notes, the series 2019-2
notes, the series 2019-3 notes, the series 2020-1 notes, the series
2020-2 notes, the series 2021-1 notes, the series 2021-2 notes, the
series 2022-1 notes, the series 2022-3 notes, the series 2022-4
notes, the series 2022-5 notes, the series 2023-1 notes, the series
2023-2 notes, the series 2023-3 notes, and the series 2023-4 notes
(collectively the rated notes). The series 2011-4 variable funding
notes are not rated by Moody's.
The series 2011-4 amendment extends the scheduled increase
expiration date to June 1, 2023 and reduces the total commitment
size. The change under the amendment is series-specific and do not
affect amounts payable to, or the rights of holders of, the rated
notes, and therefore have no impact on the ratings of the rated
notes.
The principal methodology used in reaching this conclusion and in
monitoring the ratings of the rated notes issued by the Issuer is
"Rental Vehicle Securitizations Methodology" published in October
2021.
BED BATH & BEYOND: Receives $40 Million to Fund Bankruptcy
----------------------------------------------------------
Jonathan Randles of Bloomberg Law reports that Bed Bath & Beyond
Inc. won permission Monday, April 25, 2023, to tap $40 million,
money the retailer said it needs to cover payroll for its roughly
14,000 employees and buy management time to try and locate a buyer
in Chapter 11 bankruptcy to rescue some or all of its stores.
US Bankruptcy Judge Vincent Papalia in a hearing Monday said the
urgent funding provided by Bed Bath & Beyond's lenders averts a
potential "fire sale" and immediate liquidation of the 52-year-old
retail chain. The financing approved Monday, April 25, 2023,
includes a May 28, 2023 deadline for bids on the company's assets.
About Bed Bath & Beyond
Bed Bath & Beyond Inc., together with its subsidiaries, is an
omnichannel retailer selling a wide assortment of merchandise in
the Home, Baby, Beauty & Wellness markets and operates under the
names Bed Bath & Beyond, buybuy BABY, and Harmon, Harmon Face
Values. The Company also operates Decorist, an online interior
design platform that provides personalized home design services.
At its peak, Bed Bath & Beyond operated the largest home furnishing
retailer in the United States with over 970 stores across all 50
states, consistently at the forefront of major home and bath
trends. Operating stores spanning the United States, Canada,
Mexico, and Puerto Rico, Bed Bath & Beyond offers everything from
bed linens to cookware to electric appliances, home organization,
baby care, and more.
Bed Bath & Beyond closed over 430 locations across the United
States and Canada before filing chapter 11 cases, implementing full
scale winddowns of their Canadian business and the Harmon branded
stores.
Left with 360 Bed Bath & Beyond and 120 buybuy BABY stores, Bed
Bath & Beyond Inc. and 73 affiliated debtors on April 23, 2023,
each filed a voluntary petition for relief under Chapter 11 of the
United States Bankruptcy Code to pursue a wind down of operations.
The cases are pending before the Honorable Vincent F. Papalia and
have requested joint administration of the cases under Bankr.
D.N.J. Lead Case No. 23-13359.
Kirkland & Ellis LLP and Cole Schotz P.C. are serving as legal
counsel, Lazard Frères & Co. LLC is serving as investment
banker, and AlixPartners LLP is serving as financial advisor. Bed
Bath & Beyond Inc. has retained Hilco Merchant Resources LLC to
assist with inventory sales. Kroll LLC is the claims agent.
BITNILE METAVERSE: Obtains $5.5 Million in Secured Debt Financing
-----------------------------------------------------------------
BitNile Metaverse, Inc. announced that it sold $6.875 million of
principal face amount senior secured convertible notes with an
original issue discount to sophisticated investors, for gross
proceeds to the Company of $5.5 million. The Notes mature on
April 27, 2024 and are secured by all of the assets of the Company,
and certain of its subsidiaries, including BitNile.com, Inc.
The Notes are convertible, at the investor's option, into shares of
the Company's common stock at a conversion price of $0.1091 per
share, subject to adjustment, with a floor price of $0.0168. In
addition, the investors who participated in the Financing received
warrants to purchase approximately 63 million shares of Common
Stock, exercisable for five years at $0.1091 per share, subject to
adjustment. The Company also provided the investors with
registrations rights related to the shares of Common Stock issuable
upon conversion of the Notes and exercise of the Warrants.
The proceeds from the Notes will be used for the following
purposes, (i) marketing, (ii) the spinoffs of the Company's
subsidiaries, (iii) general working capital purposes.
The Company's Chief Executive Officer, Randy May, said "It's been a
pleasure working with Todd Ault and the BitNile.com team since the
closure of our acquisition of BNC. The engaged user statistics
have greatly exceeded our expectations since the launch two months
ago and I expect continued growth with the advent of the launch of
gaming in the metaverse next week." The Company's Chief Financial
Officer, Jay Puchir, said "This financing is extremely strategic in
nature for the Company and is expected to provide sufficient growth
capital for the launch of gaming in the metaverse which we foresee
as a major revenue driver for new revenue streams for the
Company."
About BitNile Metaverse
Founded in 2011, BitNile Metaverse (formerly Ecoark Holdings, Inc.)
owns 100% of BitNile.com, Inc., including the BITNILE.COM metaverse
platform. The Platform, which went live to the public on March 1,
2023, allows users to engage with a new social networking community
and purchase both digital and physical products while playing 3D
immersive games. In addition to BitNile.com, Inc., BitNile
Metaverse also owns three non-core subsidiaries either directly or
indirectly: approximately 66% of Wolf Energy Services Inc. (OTCQB:
WOEN) indirectly; 100% of Zest Labs, Inc. directly; and
approximately 89% of Agora Digital Holdings Inc. directly. BitNile
Metaverse also owns approximately 70% of White River Energy Corp
(OTCQB: WTRV).
The Company reported a net loss of $10.55 million for the year
ended March 31, 2022, a net loss of $20.89 million for the year
ended March 31, 2021, a net loss of $12.14 million for the year
ended March 31, 2020, and a net loss of $13.65 million for the year
ended March 31, 2019. As of Dec. 31, 2022, the Company had $50.07
million in total assets, $13.18 million in total liabilities, and
$36.88 million in total stockholders' equity.
BRANDED HORN: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Banded Horn Brewing Company LLC
32 Main St., Building 13-W Ste. 102
Biddeford, ME 04005
Business Description: The Debtor is a brewery established in 2013
by Ian McConnell.
Chapter 11 Petition Date: May 2, 2023
Court: United States Bankruptcy Court
District of Maine
Case No.: 23-20091
Judge: Hon. Peter G. Cary
Debtor's Counsel: Tanya Sambatakos, Esq.
MOLLEUR LAW FIRM
190 Main St., 3rd Fl
Saco ME 04072
Tel: (207) 283-3777
Email: tanya@molleurlaw.com
Total Assets: $500,000
Total Debts: $1,213,207
The petition was signed by Ian McConnell as founding 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/HEKNSJI/Banded_Horn_Brewing_Company_LLC__mebke-23-20091__0001.0.pdf?mcid=tGE4TAMA
BUCK-LEITER PALM: Case Summary & Nine Unsecured Creditors
---------------------------------------------------------
Debtor: Buck-Leiter Palm Avenue Development LLC
1343 Main Street
Suite 704
Sarasota Florida 34236
Chapter 11 Petition Date: May 3, 2023
Court: United States Bankruptcy Court
Middle District of Florida
Case No.: 23-01803
Debtor's Counsel: Edmund S. Whitson III, Esq.
MCGLINCHEY STAFFORD
10407 Centurion Parkway N. #200
Jacksonville, Florida 32256
Tel: (904) 224-4486
Fax: (904) 212-1465
Email: ewhitson@mcglinchey.com
nreid@mcglinchey.com
Total Assets: $2,763,102
Total Liabilities: $2,795,413
The petition was signed by Mait Leitez, manager - Buck Leiter Palm
Avenue LLC.
A full-text copy of the petition containing, among other items, a
list of the Debtor's nine unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/BVZ4CFI/Buck-Leiter_Palm_Avenue_Development__flmbke-23-01803__0001.0.pdf?mcid=tGE4TAMA
CALAMP CORP: Incurs $32.5 Million Net Loss in FY Ended Feb. 28
--------------------------------------------------------------
CalAmp Corp. has filed with the Securities and Exchange Commission
its Annual Report on Form 10-K disclosing a net loss of $32.49
million on $294.95 million of total revenues for the year ended
Feb. 28, 2023, compared to a net loss of $27.99 million on $295.84
million of total revenues for the year ended Feb. 28, 2022.
As of Feb. 28, 2023, the Company had $380.12 million in total
assets, $365.81 million in total liabilities, and $14.31 million in
total stockholders' equity.
CalAmp said, "In Fiscal 2023, our primary cash needs have been for
working capital purposes, and to a lesser extent, capital
expenditures. We have historically funded our principal business
activities through cash flows generated from operations and cash on
hand. As we continue to grow our customer base to a subscription
model while increasing our revenues, there will be a need for
working capital in the future. While our subscription arrangements
create recurring multi-year revenue, they elongate the cash
conversion cycle as we must outlay cash for the associated device
but recover this cash outlay over a subscription period. Our
operations have consumed substantial amounts of cash during Fiscal
2023, and we may continue to incur substantial losses and negative
cash flow from operations for the foreseeable future. As of
February 28, 2023, we had $41.9 million of cash and cash
equivalents, a decrease of $37.3 million from February 28, 2022.
While we expect to continue to finance our operations with cash on
hand and cash generated from operations, our future performance is
subject to economic, operational, financial, competitive and other
factors, including the current inflationary environment, supply
chain constraints and the impact of uncertain international trade
relations."
A full-text copy of the Form 10-K is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/730255/000095017023015460/camp-20230228.htm
About CalAmp
CalAmp Corp. is a connected intelligence company that leverages a
data-driven solutions ecosystem to help people and organizations
improve operational performance. The Company solves complex
problems for customers within the market verticals of
transportation and logistics, commercial and government fleets,
industrial equipment, K12 fleets, and consumer vehicles by
providing solutions that track, monitor, and protect their vital
assets.
Calamp reported a net loss of $56.31 million for the year ended
Feb. 28, 2021, and a net loss of $79.30 million for the year ended
Feb. 29, 2020.
CASH CLOUD: Seeks to Tap Baker & Hostetler as Regulatory Counsel
----------------------------------------------------------------
Cash Cloud, Inc. seeks approval from the U.S. Bankruptcy Court for
the District of Nevada to employ Baker & Hostetler, LLP as
regulatory counsel.
The Debtor needs legal assistance in various regulatory compliance
matters before state and federal agencies in relation to its money
transmitter licensing status and related regulatory obligations,
and any other financial regulatory compliance.
The firm's hourly rates range from $500 to $1,150. Robert Musiala,
Jr., Esq., the primary attorney in this engagement, will be paid at
his hourly rate of $900.
Mr. Musiala disclosed in a court filing that his firm is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
Robert A. Musiala, Jr., Esq.
Baker & Hostetler LLP
One North Wacker Drive, Suite 4500
Chicago, IL 60606
Telephone: (312) 416-6200
Facsimile: (312) 416-6201
Email: rmusiala@bakerlaw.com
About Cash Cloud
Cash Cloud Inc., doing business as Coin Cloud, operates automated
teller machines for buying and selling Bitcoin, Ethereum, Dogecoin,
and more than 40 other digital currencies with cash, card and
more.
Cash Cloud sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Nev. Case No. 23-10423) on Feb. 7, 2023, with $50
million to $100 million in assets and 100 million to $500 million
in liabilities. Chris McAlary, president of Cash Cloud, signed the
petition.
Judge Mike K. Nakagawa oversees the case.
The Debtor tapped Fox Rothschild, LLP as bankruptcy counsel; Baker
& Hostetler, LLP as regulatory counsel; and Province, LLC as
financial advisor. Stretto is the claims agent.
The U.S. Trustee for Region 17 appointed an official committee to
represent unsecured creditors in the Debtor's case. The committee
tapped McDonald Carano, LLP and Seward & Kissel, LLP as legal
counsels; and FTI Consulting, Inc. as financial advisor.
CELSIUS NETWORK: Creditors Want to Unmask Suspicious Crypto Trades
------------------------------------------------------------------
A committee representing Celsius creditors is asking a bankruptcy
judge for permission to subpoena FTX for information to identify
users behind ten cryptocurrency wallets they say engaged in a
pattern of suspicious trades of Celsius'so-called CEL coin between
April and August 2022.
The Official Committee of Unsecured Creditors on April 26, 2023,
filed documents seeking authorization to issue subpoenas duces
tecum upon the FTX Debtors.
According to the Committee, the Debtors' proposed plan of
reorganization seeks to value the cryptocurrency token native to
the Debtors' cryptocurrency platform (the "CEL Token") at $0.20 per
token. One argument, among others, for this proposed valuation is
that the market price of the CEL Token on July 13, 2022 (the
"Petition Date") is not an accurate reflection of the fair market
value of the CEL Token on that date.
On June 12, 2022, Celsius paused all customer withdrawals from its
platform (the "Pause Date"). After the Pause Date, approximately
92% of all CEL Tokens were locked on the Celsius platform. The
Committee has identified what appear to be patterns of sizable
trades of some of the remaining 8% of CEL Tokens on the digital
asset exchange and related digital asset trading platforms operated
by the FTX Debtors and certain of their non-debtor affiliates (the
"FTX Exchange"). These identified trades occurred between the
Pause Date and the Petition Date and may have impacted the CEL
Token's market price. Additionally, according to public reporting,
significant short positions were taken with respect to the CEL
Token on the FTX Exchange. These short positions are also relevant
to whether the market price of the CEL Token on the Petition Date
reflected the fair market value of the CEL Token.
The Committee is investigating whether the market price of the CEL
Token as of the Petition Date reflects its fair market value, which
is information that will impact the formulation of the Debtors'
proposed plan. Obtaining limited and narrowly tailored discovery
from the FTX Debtors is necessary to complete this work. The
Committee seeks information solely within the possession of the FTX
Debtors about the above-described transactions, including the
identity of the individuals who engaged in them.
While the Committee has sought this information informally from the
FTX Debtors, the FTX Debtors have not agreed to provide the
requested discovery. The Committee believes that this information
can be obtained more quickly through targeted requests on the FTX
Debtors. This relief is particularly important given the serious
concerns raised by certain pro se creditors regarding the fair
market value of the CEL Token as of the Petition Date and the
transactions identified by experts for the Committee.
About Celsius Network
Celsius Network LLC -- http://www.celsius.network/-- is a
financial services company that generates revenue through
cryptocurrency trading, lending, and borrowing, as well as by
engaging in proprietary trading.
Celsius helps over a million customers worldwide to find the path
towards financial independence through a compounding yield service
and instant low-cost loans accessible via a web and mobile app.
Celsius has a blockchain-based fee-free platform where membership
provides access to curated financial services that are not
available through traditional financial institutions.
The Celsius Wallet claims to be one of the only online crypto
wallets designed to allow members to use coins as collateral to get
a loan in dollars, and in the future, to lend their crypto to earn
interest on deposited coins (when they're lent out).
Crypto lenders such as Celsius boomed during the COVID-19 pandemic,
drawing depositors with high interest rates and easy access to
loans rarely offered by traditional banks. But the lenders'
business model came under scrutiny after a sharp sell-off in the
crypto market spurred by the collapse of major tokens terraUSD and
luna in May 2022.
New Jersey-based Celsius froze withdrawals in June 2022, citing
"extreme" market conditions, cutting off access to savings for
individual investors and sending tremors through the crypto
market.
The list of major crypto firms that have filed for bankruptcy
protection in 2022 now includes Celsius Network, Three Arrows
Capital and Voyager Digital.
Celsius Network, LLC and its subsidiaries sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case
No. 22-10964) on July 14, 2022. In the petition filed by CEO Alex
Mashinsky, the Debtors estimated assets and liabilities between $1
billion and $10 billion.
The Debtors tapped Kirkland & Ellis, LLP and Kirkland & Ellis
International, LLP as bankrupty counsels; Fischer (FBC & Co.) as
special counsel; Centerview Partners, LLC as investment banker; and
Alvarez & Marsal North America, LLC as financial advisor. Stretto
is the claims agent and administrative advisor.
On July 27, 2022, the U.S. Trustee appointed an official committee
of unsecured creditors. The committee tapped White & Case, LLP as
its bankruptcy counsel; Elementus Inc. as its blockchain forensics
advisor; M3 Advisory Partners, LP as its financial advisor; and
Perella Weinberg Partners, LP as its investment banker.
Shoba Pillay, Esq., is the examiner appointed in the Debtors'
Chapter 11 cases. Jenner & Block, LLP and Huron Consulting
Services, LLC serve as the examiner's legal counsel and financial
advisor, respectively.
CENPORTS COMMERCE: Files Emergency Bid to Use Cash Collateral
-------------------------------------------------------------
Cenports Commerce Inc. asks the U.S. Bankruptcy Court for the
Central District of California for authority to use cash collateral
and provide adequate protection.
The Debtor requires the use of cash collateral to pay the
reasonable expenses it incurs during the ordinary course of its
business.
In addition, the Debtor requires the use of cash collateral to
retain and pay costs of professionals, Subchapter V Trustee fees,
accounting fees who will enable the Debtor to reorganize its
business.
The Secured Creditors effected by the Debtor's proposed use of cash
collateral -- in the order of priority of UCC filings -- are:
1. Fundbox: $86,200; UCC filed on May 12, 2020
2. SBA: $97,500; UCC filed on May 5, 2020
3. Payability: $1,115; UCC filed on July 17, 2020
4. Cedar Advance: $ is unknown; UCC filed on September 30,
2020
5. Wolters Kiuwer Lien Solutions: $ is unknown; UCC filed on
February 16, 2021
6. Swift Financial: $ is unknown; UCC filed on September 7,
2021
7. Toyota Industrial Commercial Finance: $20,022; UCC filed on
September 16, 2021. Collateral securing Toyota's claim is a used
Toyota Forklift; Serial No.: FBE15U-12408
8. Arc Technologies, Inc.: $163,846; UCC filed on February 18,
2022
9. Wolters Kiuwer Lien Solutions: $ is unknown; UCC filed on
March 30, 2022
10. Toyota Industrial Commercial Finance: $23,245; UCC filed on
April 12, 2022. Collateral securing Toyota's claim is a used Toyota
Forklift; Serial No.: 8FBE2OU-10728
11. Wynwest Advance: $88,160; UCC filed on March 2, 2023
12. Uptown Fund LLC: $262,000; UCC filed on March 15, 2023
13. Halo T LLC: $550,510; UCC filed on March 29, 2023
14. PIRS Capital, LLC: $158,390; UCC filed on April 6, 2023
15. Vernon Capital: $ is unknown; UCC filed on April 18, 2023
16. Unique Funding Solutions: $190,050; UCC filed on April
19,2023
17. Webfund: $348,777; UCC filed on April 20, 2023.
Based on the value of its assets, the Debtor at this time is
offering to make monthly adequate protection payments to Fundbox
and Small Business Administration in the amount of $1,400 and $480
respectively. The Debtor believes the Secured Creditors are
adequately protected by the ongoing business operations and the
income to be generated throughout the pendency of the Debtor's
bankruptcy case, and the granting of a replacement lien to the
extent of any diminution in value of collateral as a result of the
Debtor's use of cash collateral. The replacement lien would be on
all post-petition assets in the same priority and to the same
extent and validity as the Secured Creditors asserted their
pre-petition security interests.
A copy of the motion is available at https://bit.ly/3LIn5Ft from
PacerMonitor.com.
About Cenports Commerce Inc.
Cenports Commerce Inc. is a B2B drop shopping (virtual
distribution) company that helps brands sell products online to
HomeDepot, Lowes, etc. under their own account. The Company has no
inventory and uses internal tools to help retailers.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Cal. case No. 23-40478) on April 25,
2023. In the petition signed by Derrick Chen, as CEO of Censports
Commerce Holding Inc., the Debtor's shareholder, the Debtor
disclosed $212,973 in assets and $7,391,240 in liabilities.
Michael Jay Berger, Esq., at the Law Offices of Michael Jay Berger,
represents the Debtor as legal counsel.
CGEN HOLDINGS: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: CGEN Holdings, LLC
1010 57th Street
Brooklyn, NY 11219
Chapter 11 Petition Date: May 3, 2023
Court: United States Bankruptcy Court
Eastern District of New York
Case No.: 23-41549
Judge: Hon. Elizabeth S. Stong
Debtor's Counsel: Gabriel Del Virginia, Esq.
LAW OFFICE OF GABRIEL DEL VIRGINIA
30 Wall Street 12th Floor
New York NY 10005
Tel: 212-371-5478
Email: gabriel.delvirginia@verizon.net
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Carmelo Genova as sole member.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/REIW4HI/CGEN_HOLDINGS_LLC__nyebke-23-41549__0001.0.pdf?mcid=tGE4TAMA
CHICAGO SOUTH LOOP: Hearing Today on Cash Collateral Access
-----------------------------------------------------------
Chicago South Loop Hotel Owner, LLC asks the U.S. Bankruptcy Court
for the Northern District of Illinois, Eastern Division, for
authority to use cash collateral and provide adequate protection,
through June 2, 2023. A hearing on the matter is set for May 4 at
9 a.m.
The Debtor seeks to use cash collateral belonging to U.S. Bank
National Association, as Trustee for Morgan Stanley Bank of America
Merrill Lynch Trust 2013-C13, Commercial Mortgage Pass-Through
Certificates, Series 2013-C13 and specially serviced by Rialto
Capital Advisors, LLC as to the Debtor's Real Estate and Business
Assets.
The Debtor believes there may be pre-petition liens, on the real
estate and business assets in favor of Lender in a sum that does
not exceed the value of all assets at the time of the filing for
relief pursuant to a foreclosure action filed in the United States
District Court of the Northern District of Illinois and other
information provided by the Lender.
As adequate protection, the Lender will be granted replacement
liens upon the assets in Debtor's Possession subsequent to the
filing of the Chapter 11 petition to the extent of the collateral
utilized, subject to verification of the extent and validity of the
liens.
The Debtor asserts that a large equity cushion exists for the real
estate owned by the Debtor. The property is valued at $19 million
as of February 23, 2020, by Byrnes & Walsh, LLC. The Lender claims
to be owed approximately $7 million which the Debtor disputes and
asserts is closer to $5 million. However, no matter how much is
owed to the Lender -- which will likely have to be determined by
this court at a later date in the proceeding -- a large equity
cushion exists.
The Debtor is also proposing a monthly payment of $41,515
retroactive to the beginning of the case.
A copy of the motion is available at https://bit.ly/3HneaXl from
PacerMonitor.com.
About Chicago South Loop Hotel Owner
Chicago South Loop Hotel Owner, LLC operates public hotels and
motels.
Chicago South Loop Hotel Owner, LLC filed its voluntary petition
for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D.
Ill. Case No. 23-02595) on Feb. 27, 2023. The petition was signed
by Todd Hansen as manager. At the time of filing, the Debtor
estimated $10 million to $50 million in assets and $1 million to
$10 million in liabilities.
Judge Lashonda A. Hunt presides over the case.
Penelope N. Bach, Esq. at Bach Law Offices, Inc. represents the
Debtor as counsel.
COIN CLOUD: Receives $16.75M Purchase Offer from RockitCoin
-----------------------------------------------------------
Alex Wolf of Bloomberg Law reports that cryptocurrency ATM kiosk
operator RockitCoin LLC agreed to offer $16.75 million as a
starting auction bid to acquire competitor Coin Cloud out of
bankruptcy.
Coin Cloud designated RockitCoin as a "stalking horse" bidder,
which will set a floor price for an upcoming auction of Coin
Cloud's digital currency business, according to a Tuesday, April
25, 2023, filing in the US Bankruptcy Court for the District of
Nevada.
Under the deal, RockitCoin would acquire Coin Cloud's digital
currency machines located in convenience stores and various
retailers across the US and Brazil, and all assets and contracts
needed to operate the business.
About Cash Cloud
Coin Cloud Inc., doing business as Coin Cloud, operates automated
teller machines for buying and selling Bitcoin, Ethereum, Dogecoin,
and more than 40 other digital currencies with cash, card and
more.
Coin Cloud Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Nev. Case No. 23-10423) on Feb. 7, 2023.
In the petition filed by Chris McAlary, as president, the Debtor
reported assets between $50 million and $100 million and estimated
liabilities between $100 million and $500 million.
The case is overseen by Honorable Bankruptcy Judge Mike K.
Nakagawa.
The Debtor tapped Fox Rothschild, LLP as legal counsel, and
Province, LLC as financial advisor. Stretto is the claims agent.
The U.S. Trustee for Region 17 appointed an official committee to
represent unsecured creditors in the Debtor's case. The committee
is represented by McDonald Carano, LLP and Seward & Kissel, LLP.
CORRIDOR MEDICAL SERVICES: Commences Subchapter V Bankruptcy Case
-----------------------------------------------------------------
Corridor Medical Services Inc. filed for chapter 11 protection in
the Western District of Texas. The Debtor elected on its voluntary
petition to proceed under Subchapter V of chapter 11 of the
Bankruptcy Code.
Formed in March 1996, Corridor Medical Services provided x-ray,
laboratory, ultrasound/doppler echocardiograms, electrocardiogram
(EKG) and polymerase chain reaction services to patients that are
restricted in travel. The Debtor 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 and two affiliates previously filed bankruptcy on
November 30, 2018 and confirmed a plan on November 23, 2020. Since
emerging from bankruptcy, the Debtor has made its plan payments as
they have come due.
The Covid 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 of 2022, Corridor
received $150,000 from the ERC program and secured the necessary
office spaces to house this medical clinic. Finally in October of
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.
About Corridor Medical Services
Corridor Medical Services Inc. is a Health Care Business (as
defined in 11 U.S.C. Sec. 101(27A)).
Corridor Medical Services Inc. filed a petition for relief under
Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. W.D. Tex.
Case No. 23-10251) on April 14, 2023.
In the petition filed by Stephen R. Nelson, as president, the
Debtor reported assets and liabilities between $1 million and $10
million. The petition states that funds will not be available to
unsecured creditors.
The Debtor is represented by:
Stephen W. Sather, Esq.
Barron & Newburger, PC
PO Box Box 643
San Marcos, TX 78667
CORUS ENTERTAINMENT: DBRS Confirms BB Issuer Rating
---------------------------------------------------
DBRS Limited confirmed Corus Entertainment Inc.'s Issuer Rating at
BB and changed the trend to Negative from Stable. The trend change
reflects DBRS Morningstar's concerns that Corus's near-term
earnings will remain under pressure as a result of a contraction in
advertising revenue as the industry grapples with signs of slowing
economic activity. As such, DBRS Morningstar is concerned that the
business risk profile and corresponding key credit metrics could
deteriorate beyond the level considered appropriate for the current
rating category.
On April 13, 2022, DBRS Morningstar confirmed Corus's Issuer Rating
at BB with a Stable trend. The rating confirmation reflected a
continued measured recovery in F2021 financial performance, which
had continued into the first half of F2022, and the expectation
that the advertising recovery would continue, as would the
Company's commitment to debt reduction.
At that time, DBRS Morningstar forecast F2022 EBITDA to decline in
the high-single digits largely as a result of wage and programming
pressures and higher required spending on Canadian content.
Leverage was expected to be roughly flat year over year (YOY) at
2.85 times (x) by the end of F2022, mainly benefitting from debt
reduction, but ended higher than expected. Furthermore, DBRS
Morningstar's outlook on Corus's earnings profile has since
weakened.
After showing improvement in F2021, Corus's earnings were
challenged in F2022 as the macroeconomic environment became more
uncertain and advertising demand softened. While F2022 consolidated
revenue growth was positive for the year, EBITDA declined
meaningfully YOY, primarily reflecting higher programming costs,
inflationary pressure on compensation, a catch-up obligation for
Canadian content spending, and the absence of wage subsidies and
regulatory fee relief. Softness in the advertising market combined
with continued meaningful increases in direct costs; employee
compensation; and higher sales, general, and administrative (SG&A)
costs flowed into Q1 F2023 and the overall economic environment
remains unstable.
In F2022, consolidated revenue increased 4% YOY to $1,599 million,
although revenue performance was somewhat varied through the year,
but softened noticeably in Q4 F2022. Growth in F2022 reflected an
improvement in radio from a fairly depressed base in F2021 was up
9% YOY, whereas Television posted a 3% YOY growth rate and
continued to struggle with some traditionally strong sectors still
not near prepandemic advertising spending such as autos, groceries,
and entertainment. While revenue was up modestly, F2022 EBITDA
declined 15% YOY to $444 million, which was below DBRS
Morningstar's expectations, driven by a 16% YOY increase in direct
costs of sales, 6% YOY growth in compensation costs, and a 20%
increase in SG&A.
Operating results continued to be challenged in Q1 F2023 with
revenue of $431 million, down 7% YOY, as TV advertising revenue
remained under pressure, declining 11% YOY, and subscriber revenue
was flat. Q1 F2023 EBITDA of $132 million was down 26% YOY,
primarily reflecting higher program rights costs that were driven
by an increase in original programming compared with the prior
year, a modest increase in employee costs, and an increase in
marketing costs, which DBRS Morningstar expects to remain a
headwind throughout the year. Overall, Q1 F2023 EBITDA margin was
31% compared with 38% in Q1 F2022.
The soft earnings results were also reflected in the Company's
financial profile. In F2022, free cash flow (FCF) after dividends
and before changes in working capital declined 12.8% YOY to $207
million from $238 million, primarily reflecting lower net income,
as capital expenditures (capex) of $18 million and $69 million in
dividend payments were roughly flat YOY. Importantly, despite the
challenging advertising market and softer-than-expected earnings,
the Company continued to prioritize debt reduction, paying down
$122 million of debt and thus ending the year with $1.3 billion of
debt. However, as a result of the decline in EBITDA and despite a
lower debt balance, gross debt-to-EBITDA increased to 3.15x,
compared with 2.85x in F2021. In Q1 F2023, the debt balance
remained virtually unchanged; however, given the weakness in
quarterly EBITDA, last-12-month gross debt-to-EBITDA was 3.58x
compared with 3.15x at year-end (YE) F2022.
DBRS Morningstar believes that the challenging advertising
environment will likely persist through F2023. However, while
advertising spending cuts are typically on the vanguard of economic
softness, it can also recover quickly. A strong slate of programs,
access to specialty channels, a robust production slate of Canadian
content that has international appeal, the ability to deliver
premium content across a wide array of channels, the continued
development of digital advertising solutions, and a resilient
subscriber base position Corus well to benefit when advertising
recovers. As a result, DBRS Morningstar expects F2023 revenue to
decrease in the low-to-mid single digits and then increase in the
mid-single digits in F2024. DBRS Morningstar expects the EBITDA
pressure witnessed in Q1 F2023 to persist through the year, but
moderate as the year progresses as the Company takes measures to
curb costs and anniversaries easier annual comparables than in the
first quarter. As a result, DBRS Morningstar expects EBITDA to
decline in the mid-to-high single digits in F2023, before stepping
up in F2024, in part related to catch-up Canadian content costs
rolling off.
DBRS Morningstar forecasts F2023 FCF after dividends and before
changes in working capital to be $110 million to $120 million, down
from $207 million in F2022, largely reflecting a decline in net
income, partially offset by a lower level of dividend payments
related to the Company's announcement on March 6, 2023, to halve
the dividend. DBRS Morningstar expects the Company to continue to
prioritize using internally generated cash flow toward reducing the
balance of its term facility for the foreseeable future. While debt
is expected to continue to decline in F2023, owing to the softness
in EBITDA, YE F2023 gross leverage is expected to weaken to
approximately 3.25x, before improving to well below 3.0x at YE
F2024.
Looking ahead to F2024 and into F2025, if key credit metrics remain
under pressure and/or leverage is maintained at a structurally
higher level as a result of weaker-than-expected operating
performance and/or more aggressive financial management, a negative
rating action may occur. Conversely, should operating performance
strengthen, combined with the continued allocation of FCF towards
debt reduction such that gross leverage stabilizes near or below
3.0x, DBRS Morningstar may change the trend to Stable from
Negative.
Notes: All figures are in Canadian dollars unless otherwise noted.
COSTAR GROUP: S&P Alters Outlook to Stable, Affirms 'BB+' ICR
-------------------------------------------------------------
S&P Global Ratings revised its outlook to stable from positive and
affirmed its 'BB+' issuer credit rating on CoStar Group Inc.
The stable outlook reflects S&P's expectation that CoStar will
remain relatively recession-resistant and benefit from its leading
position in its core U.S. market, generating revenue growth of
about 10% in 2023 while EBITDA declines 20% due to planned
reinvestment in the residential segment.
S&P said, "Our outlook revision reflects our expectation EBITDA
margins will decline 900 basis points in 2023 to support large
residential segment investments. While we view CoStar's organic
investment program favorably and expect the investments will be
accretive to earnings over the long term, the investments carry the
risk of execution missteps and operational errors in the near term.
This could delay CoStar in expanding its EBITDA base to a scale
commensurate with investment-grade peers. The company will incur
substantial incremental product development and marketing costs to
increase brand awareness and attract traffic for Homes.com,
resulting in additional operating expenses of about $250 million in
2023. Under our updated base-case forecast S&P Global
Ratings-adjusted EBITDA margins will decline to 23% in 2023 from
over 32% in 2022, reducing EBITDA more than 20% to about $550
million.
"We believe profitably scaling Homes.com may take longer than
CoStar expects. The company has a track record of expanding its
platforms organically and through acquisitions to become a leading
provider of information, analytics, and marketing solutions to the
U.S. commercial real estate industry. Nevertheless, we see the
growth rates targeted by the company's residential investment
program as more aggressive than its similar previous programs.
CoStar is targeting increasing residential revenues to about $700
million by 2027 and expanding its EBITDA margin to 40%. If
successful, this would be faster growth than Apartments.com, which
took about seven years to eclipse $700 million of revenue through
both organic and inorganic growth.
"While CoStar has built its brand and improved resources to invest
in marketing efforts, it faces scaled competitors with strong brand
recognition including Zillow, Redfin, and Realtor.com. We do not
expect the residential segment will reach $700 million by 2027,
from roughly $45 million forecast in 2023. We believe solid
execution will support a recovery in EBITDA margins toward the 30%
area in 2025 from about 23% in 2023 as residential investments
decline.
"Adjusted net leverage could temporarily spike to the mid-2x area
if CoStar undertakes a large opportunistic acquisition (financed
with cash and debt), which is not our base-case assumption. We
believe CoStar will continue to pursue acquisitions to supplement
organic growth. Customers increasingly value comprehensive
products. The highly fragmented nature of the commercial real
estate information technology industry provides opportunities to
acquire targets that offer additional services, access to new
geographies, or overlapping content or customers. In 2021, CoStar
attempted to acquire CoreLogic, a property data and analytics
provider, for about $7.5 billion in primarily stock and cash. In
2023, CoStar was in active discussions to acquire Realtor.com
parent Move Inc. from News Corp. for $3 billion before announcing
the acquisition fell through. We believe CoStar didn't complete
these transactions in part because of its disciplined financial
policy. However, we expect the company will continue to evaluate
sizable transactions that could significantly increase leverage.
Still, we anticipate CoStar could deleverage quickly following a
large acquisition due to its strong cash flow generation.
"We expect healthy demand will support revenue expansion even if
economic growth weakens.Under our updated base-case forecast, we
project a shallow recession in 2023. We don't expect this to
significantly affect CoStar's revenues, a high proportion (about
80%) of which are recurring and contracted beyond 12 months. Strong
recent backlog growth and the mission-critical nature of CoStar's
services support visibility into revenue expansion of about 10% in
2023. Current conditions so far indicate a resilient economy
despite challenges. But increased credit tightening stemming from
recent events in the banking sector may lead to a far worse outcome
potentially affecting CoStar's more transactional revenues (about
20% of total revenues) and smaller brokerage customers (about 8% of
CoStar Suite revenues). However, during the financial downturn of
2008, CoStar's revenues declined only 2%.
"The stable outlook reflects our expectation CoStar will remain
relatively recession-resistant and benefit from its leading
position in its core U.S. market. We expect it will increase
revenue about 10% in 2023, while EBITDA declines 20% due to planned
reinvestment in the residential segment.
"We could lower the rating if the company's financial policy became
significantly more aggressive, including a sizable, leveraging
acquisition that significantly depleted cash balances or reduced
profitability.
"While unlikely over the next 12 months, we could raise the rating
if CoStar continued to increase its scale, scope, and diversity
through acquisitions and international expansion such that adjusted
EBITDA approached $700 million. We could also raise the rating if
CoStar extended its track record of a conservative financial policy
and we believed it were unlikely to pursue a large acquisition that
would significantly increase adjusted leverage." This would be
consistent with:
-- Adjusted debt (currently based on net debt) to EBITDA well
below 2x; and
-- A liquidity position S&P views to be strong or better.
ESG credit indicators: E-2, S-2, G-2
COTTON WEAVE: Taps Heritage Properties RC as Real Estate Consultant
-------------------------------------------------------------------
Cotton Weave Estates, LLC seeks approval from the U.S. Bankruptcy
Court for the Eastern District of Texas to employ Heritage
Properties RC, LLC.
The Debtor requires a real estate sales consultant to assist in the
marketing of its property, solicitation of interested buyers, and
sale negotiations.
The firm will get a commission of 5 percent of the sales price.
Mike Atkins, a partner at Heritage Properties RC, disclosed in a
court filing that hisfirm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Mike Atkins
Heritage Properties RC, LLC
801 S Highway 78 Ste
Wylie, TX 75098
Tel: (972) 441-8909
About Cotton Weave Estates
Cotton Weave Estates, LLC is a company in Wylie Texas, which
operates in the residential building construction industry.
Cotton Weave Estates filed its voluntary petition for Chapter 11
protection (Bankr. E.D. Texas Case No. 23-40030) on Jan. 2, 2023,
with $1 million to $10 million in both assets and liabilities. Ryan
Cole, chief executive officer of Cotton Weave Estates, signed the
petition.
Judge Brenda T. Rhoades oversees the case.
Carrington, Coleman, Sloman& Blumenthal, LLP is the Debtor's legal
counsel.
CURITEC LLC: Wins Interim Cash Collateral Access
------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas,
Houston Division, authorized Curitec, LLC to use cash collateral on
an interim basis in accordance with its agreement with RGH
Enterprises, Inc., a wholly owned subsidiary of Cardinal Health,
Inc.
The authority to use cash collateral is granted in accordance with
the budget, with a 10% variance, through and including the date of
a final hearing, or, if no Final Hearing is held, upon further
Court order.
Prior to the Petition Date, the Parties entered into one or more
agreements pursuant to which RGH provided medical supplies to the
Debtor for sale to the Debtor's customers.
Pursuant to one or more of the Agreements, RGH claims an interest
in the Debtor's cash collateral. On April 27, 2022, RGH filed a
UCC-1 Financing Statement, which purported to perfect a security
interest in the assets described thereon, including all accounts
and accounts receivable.
Following the Petition Date, the Parties have worked together in
good faith and at arm's-length to reach a consensual resolution
regarding the use of cash collateral.
Any interest of RGH in cash collateral is adequately protected by
virtue of the Debtor's use of cash collateral pursuant to the
Order.
As additional adequate protection for the post-petition use by the
Debtor of cash collateral in which RGH holds a valid and
enforceable interest, and to the extent of any diminution in RGH's
interests in the Debtor's cash collateral, RGH will be granted
security interests in and liens on the Debtor's postpetition
property and the proceeds thereof, with the same validity,
enforceability, and priority that it held in the Debtor's
prepetition property. Replacement Liens will only be granted in
property of the same type as any prepetition collateral of RGH to
the extent of any diminution in value, and will not extend to any
unencumbered assets.
In the event of a failure of adequate protection, RGH will have a
claim to the extent provided for under 11 U.S.C. section 507(b) and
the RGH Adequate Protection Claim will, if allowed, be granted in
pari passu status with any allowed claim of the Centers for
Medicare and Medicaid Services under section 507(b), pursuant to a
Stipulation and Agreed Order Regarding Suspension of Medicare
Payments to the Debtor by the United States Department of Health
and Human Services. Payment of any RGH Adequate Protection Claim
will be subordinate to the Carve Out.
The Carve Out includes (i) all money and property subject to a
valid and perfected lien; (ii) all ordinary course expenses owed or
owing to administrative creditors, including employees but other
than professional fees, in the amounts described in the Budget; and
(iii) amounts required to be paid, if any, to the Clerk of the
Court and to the Office of the U.S. Trustee pursuant to 28 U.S.C.
section 1930(a).
The final hearing on the matter is set for May 26, 2023 at 1 p.m.
A copy of the order is available at https://bit.ly/428JP6R from
PacerMonitor.com.
About Curitec LLC
Curitec LLC -- https://curitec.com/ -- is a Medicare accredited
Part B provider of durable medical supplies (DMEPOS). Its services
include the delivery of advanced wound care products as well as
ostomy, urological, and tracheostomy supplies to long term care
facilities and hospice.
Curitec LLC filed a petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. S.D. Tex. Case No. 23-90108) on March 3,
2023. In the petition filed by Nicholas Percival as manager and
chief operating officer, the Debtor reported assets and liabilities
between $1 million and $10 million each.
The case is overseen by the Honorable Bankruptcy Judge Christopher
M. Lopez.
The Debtor is represented by Casey William Doherty, Jr, Esq., and
Samuel R. Maizel, Esq., at Dentons US LLP.
CYXTERA TECHNOLOGIES: Board Elects Two New Directors
----------------------------------------------------
The Board of Directors of Cyxtera Technologies, Inc. elected
Frederick Arnold and Roger Meltzer to serve as members of the
Board.
Messrs. Arnold and Meltzer were appointed pursuant to the terms of
the Stockholders Agreement, dated July 29, 2021, between the
Company and certain investor parties, as modified by that certain
Joinder to Stockholders Agreement, dated as of July 29, 2022. Mr.
Arnold was also appointed as a member of the Audit Committee and
Mr. Meltzer was also appointed as a member of the Compensation
Committee.
Mr. Arnold has over 40 years of experience in investment banking,
corporate management and board governance. Mr. Arnold has served
as a member of the boards of directors of Lehman Brothers Holdings
Inc. since 2012 (including serving as Chairman of the Board from
April 2014 to April 2015 and from January 2019 to present), Navient
Corporation (NASDAQ: NAVI) since August 2018, M3-Brigade
Acquisition III Corp. (NYSE: MBSC, MBSCU, MBSCW) since 2021 and
Metropolitan Gaming Holdco Ltd. since 2022. He also has served as
a director of Valaris PLC (NYSE: VAL) from November 2019 to April
2021, The We Company (and as a member of the New Committee) from
June 2020 to July 2020, Corporate Capital Trust II from 2015 to
2016, Corporate Capital Trust (NYSE: CCT) from 2011 to December
2018 (Chairman 2017 to 2018), various members of the family of
funds advised by FS/KKR Advisor, LLC (including FS KKR Capital
Corp. (NYSE: FSK), FS Investment Corp II, FS Investment Corp. III
and FS Investment Corp. IV) from December 2018 to November 2019,
Syncora Holdings Ltd. (OTC BB: SYCRF) from September 2016 to
January 2020, and CIFC Corp. (NASDAQ: CIFC) from 2011 to 2014.
From 2015 to 2017, Mr. Arnold served as managing director and chief
financial officer of Convergex Group, LLC. Prior to that, he
served as executive vice president and chief financial officer of
Capmark Financial Group Inc. from 2009 to 2011 and as executive
vice president, Finance, for Masonite International Inc. from 2006
to 2007. From 2000 to 2003, Mr. Arnold served in various executive
capacities for Willis Group Holdings and its subsidiaries,
including as executive vice president of Finance, Development and
Administration of Willis NA, and Group Chief Administrative Officer
and Group Executive Vice President, Strategic Development, for
Willis Group Holdings. Mr. Arnold began his career in investment
banking at Lehman Brothers in 1980 and spent the following twenty
years as an international investment banker, primarily at Lehman
Brothers and at Smith Barney, where he served as Managing Director
and Head of European Corporate Finance. Mr. Arnold earned a B.A.,
summa cum laude, in Economics from Amherst College, a M.A. in
Jurisprudence from Oxford University and a J.D. from Yale Law
School.
Mr. Meltzer practiced law at DLA Piper LLP from 2007 and held
various roles: Global Co-Chairman (2015 through 2020), and
currently as Chairman Emeritus; Americas Co-Chairman (2013 through
2020); Member, Office of the Chair (2011 through 2020); Member,
Global Board (2008 through 2020); Co-Chairman, U.S. Executive
Committee (2013 through 2020); Member, U.S. Executive Committee
(2007 through 2020); and Global Co-Chairman, Corporate Finance
Practice (2007 through 2015). Prior to joining DLA Piper LLP, Mr.
Meltzer practiced law at Cahill Gordon & Reindel LLP from 1977 to
2007 where he was a member of the Executive Committee from 1987
through 2007, Co-Administrative Partner and Hiring Partner from
1987 through 1999, and Partner from 1984 through 2007. Mr. Meltzer
currently serves on the Advisory Board of Harvard Law School Center
on the Legal Profession (May 2015 to Present); and the Board of
Trustees, New York University Law School (September 2011 to
Present); and previously served on the Corporate Advisory Board,
John Hopkins, Carey Business School (January 2009 to December
2012). He has previously served on the board of directors of:
Lionheart II Corp (March 2021 to May 2022), Lionheart III Corp
(March 2021 to August 2022), Haymaker Acquisition Corp. III
(February 2021 to July 2022), certain subsidiaries of Nordic
Aviation Capital (December 2021 to April 2022), The Legal Aid
Society (November 2013 to January 2020), Hain Celestial Group, Inc.
(December 2000 to February 2020), American Lawyer Media (January
2010 to July 2014) and The Coinmach Service Corporation (December
2009 to June 2013). Mr. Meltzer has also received several awards
and honors and has been actively involved in philanthropic activity
throughout his career. Mr. Meltzer received Juris Doctor degree in
law from New York University School of Law and an A.B. from Harvard
College. In February 2021, Mr. Meltzer joined the board of
directors of Ubicquia LLC, a privately-held smart lighting
solutions provider. In May 2022, Mr. Meltzer joined the board of
directors of MSP Recovery, Inc. following its business combination
with Lionheart Acquisition Corp. II. In June 2022, Mr. Meltzer
joined the board of directors of Aearo Holding LLC and affiliated
entities. In August 2022, Mr. Meltzer joined the board of
directors of Empatan Public Limited Company following its business
combination with Lionheart III Corp, Security Matters Limited and
Aryeh Merger Sub Inc. In January 2023, Mr. Meltzer joined the
board of directors of a portfolio company of TPG Capital L.P. In
February 2023, Mr. Meltzer joined the board of directors of Klein
Hersh, an executive recruitment firm that spans the life sciences
continuum and healthcare industry.
The Board determined that each of Messrs. Arnold and Meltzer meets
the independence standards of the rules of The NASDAQ Stock Market
LLC and the applicable rules of the Securities and Exchange
Commission. There are no transactions in which Messrs. Arnold and
Meltzer have an interest requiring disclosure under Item 404(a) of
Regulation S-K.
The Company has entered into a disinterested director letter
agreement with each of Messrs. Arnold and Meltzer. In accordance
with the Letter Agreements, each of Messrs. Arnold and Meltzer will
receive cash compensation equal to $480,000 per annum, payable
monthly.
Board Committee Appointment
On April 24, 2023, the Company appointed Greg Waters to the Audit
Committee of the Board. Upon the appointment of Mr. Arnold to the
Audit Committee of the Board, the Company regained compliance with
Nasdaq Listing Rule 5605, including Rule 5605(c)(2), which requires
the Audit Committee of the Board to consist of at least three
members, each of whom is an independent director under the Nasdaq
Listing Rules and who meets heightened independence standards for
Audit Committee members.
About Cyxtera Technologies Inc.
Headquartered in Coral Gables, FL, Cyxtera Technologies, Inc. --
https://www.cyxtera.com -- is a global data center company
providing retail colocation and interconnection services. The
Company provides an innovative suite of deeply connected and
intelligently automated infrastructure and interconnection
solutions to more than 2,300 leading enterprises, service
providers and government agencies around the world - enabling them
to scale faster, meet rising consumer expectations and gain a
competitive edge.
Cyxtera reported a net loss of $355.1 million in 2022, a net loss
of $257.9 million in 2021, and a net loss of $122.8 million in
2020.
* * *
As reported by the TCR on Dec. 23, 2022, S&P Global Ratings lowered
its issuer credit rating on U.S.-based data center operator Cyxtera
Technologies Inc. by two notches to 'CCC' from 'B-'. The negative
outlook reflects Cyxtera's diminishing liquidity position and the
potential for a default or debt restructuring over the next 12
months.
CYXTERA TECHNOLOGIES: Hires Adviser as Debt Talks Continue
----------------------------------------------------------
Reshmi Basu and Rachel Butt of Bloomberg News report that Cyxtera
Technologies has hired AlixPartners for help with handling
operations as the company continues to explore options to tackle
debt due in 2024, according to people with knowledge of the
situation.
The data-center operator is considering a potential sale and a
possible capital raise as it continues talks with lenders on how to
address nearly $870 million of term-loan debt that comes due in May
2024. Cyxtera's backers include hedge fund Starboard Value LP as
well as private equity firms Medina Capital Advisors and BC
Partners.
About Cyxtera Technologies, Inc.
Headquartered in Coral Gables, FL, Cyxtera Technologies, Inc. --
https://www.cyxtera.com -- is a global data center company
providing retail colocation and interconnection services. The
Company provides an innovative suite of deeply connected and
intelligently automated infrastructure and interconnection
solutions to more than 2,300 leading enterprises, service providers
and government agencies around the world - enabling them to scale
faster, meet rising consumer expectations and gain a competitive
edge.
Cyxtera reported a net loss of $355.1 million for the year ended
Dec. 31, 2022, compared to a net loss of $257.9 million for the
year ended Dec. 31, 2021.
* * *
As reported by the TCR on Dec. 23, 2022, S&P Global Ratings lowered
its issuer credit rating on U.S.-based data center operator Cyxtera
Technologies Inc. by two notches to 'CCC' from 'B-'. The negative
outlook reflects Cyxtera's diminishing liquidity position and the
potential for a default or debt restructuring over the next 12
months.
DEVILLE CORP: Wins Interim Cash Collateral Access
-------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida, Tampa
Division, authorized Deville Corp. to use cash collateral on an
interim basis, in accordance with the budget, with a 10% variance.
The Debtor is permitted to use cash collateral to pay:
(a) amounts expressly authorized by the Court, including
payments to the US Trustee for quarterly fees;
(b) the current and necessary expenses set forth in the
budget, plus an amount not to exceed 10% for each line item; and
(c) additional amounts as may be expressly approved in writing
by FLA-Nash, LLC and H.I. Resorts Nashville, LLC, as
successor-in-interest to Savannah Capital, LLC.
FLA-Nash, LLC has agreed to extend the maturity date of its loan
from March 1, 2023, through and including June 1, 2023. Consistent
with the Budget, the Debtor will continue to pay to FLA-Nash, LLC
regular mortgage payment. The Debtor and FLA-Nash, LLC are
authorized, but not required, to enter into reasonable and
customary documents to document the extension consistent with the
Order.
Each creditor with a security interest in the cash collateral will
have a perfected post-petition lien against cash collateral to the
same extent and with the same validity and priority as the
prepetition lien, without the need to file or execute any document
as may otherwise be required under applicable non bankruptcy law.
The Debtor will maintain insurance coverage for its property in
accordance with the obligations under the loan and security
documents with the Secured Creditors.
A continued hearing on the matter is set for May 18, 2023, at 1:30
p.m.
A copy of the order and the Debtor's budget is available at
https://bit.ly/42a55cB from PacerMonitor.com.
The Debtor projects total operating expenses, on a monthly basis,
as follows:
$4,533 for April 2023; and
$7,105 for May 2023.
About Deville Corp.
Deville Corp. is a Single Asset Real Estate (as defined in 11
U.S.C. Sec. 101(51B)).
Deville Corp. filed a petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. M.D. Fla. Case No. 22-04930) on Dec. 14,
2022. In the petition filed by Edgar L.T. Gay, as president and
director, the Debtor reported assets between $10 million and $50
million and liabilities between $1 million and $10 million.
Judge Catherine Peek McEwen oversees the case.
The Debtor is represented by Daniel R. Fogarty, Esq. at Stichter,
Riedel, Blain & Postler, P.A.
DIOCESE OF ROCHESTER: Insurers OK'd to Fight Abuse Claims Coverage
------------------------------------------------------------------
James Nani of Bloomberg Law reports that insurers for the bankrupt
Catholic Diocese of Rochester, New York, won court approval to
resume litigation over whether they're liable for sexual abuse
claims made against the church.
Interstate Fire & Casualty Co. and other insurers can move forward
with litigation to determine whether they have valid defenses
against coverage of child sexual abuse claims lodged against the
diocese, Judge Paul R. Warren of the US Bankruptcy Court for the
Western District of New York ruled on Tuesday. The litigation was
put on hold after the diocese filed for bankruptcy in September
2019.
About The Diocese of Rochester
The Diocese of Rochester in upstate New York provides support to 86
Roman catholic parishes across 12 counties in upstate New York. It
also operates a middle school, Siena Catholic Academy. The diocese
has 86 full-time employees and six part-time employees and provides
medical and dental benefits to an additional 68 retired priests and
two former priests.
The diocese generated $21.88 million of gross revenue for the
fiscal year ending June 30, 2019, compared with a gross revenue of
$24.25 million in fiscal year 2018.
The Diocese of Rochester filed for Chapter 11 bankruptcy protection
(Bankr. W.D.N.Y. Case No. 19-20905) on Sept. 12, 2019, amid a wave
of lawsuits over alleged sexual abuse of children. In the
petition, the diocese was estimated to have $50 million to $100
million in assets and at least $100 million in liabilities.
Bond, Schoenec & King, PLLC and Bonadio & Co. serve as the
diocese's legal counsel and accountant, respectively. Stretto is
the claims and noticing agent.
The U.S. Trustee for Region 2 appointed an official committee of
unsecured creditors in the diocese's Chapter 11 case. Pachulski
Stang Ziehl & Jones, LLP and Berkeley Research Group, LLC serve as
the committee's legal counsel and financial advisor, respectively.
DUNCAN ROAD: Seeks to Hire Hiller Law as Bankruptcy Counsel
-----------------------------------------------------------
Duncan Road Academy, Inc., doing business as SODAT-Delaware, seeks
approval from the U.S. Bankruptcy Court for the District of
Delaware to employ Hiller Law, LLC as its bankruptcy counsel.
The firm will render these legal services:
(a) advise with respect to the Debtor's powers and duties in
the continued management of its assets;
(b) assist the Debtor in maximizing the value of its assets
for the benefit of all creditors and other parties in interest;
(c) commence and prosecute any and all necessary and
appropriate actions and/or proceedings on behalf of the Debtor and
its estate;
(d) prepare legal papers;
(e) appear in court to represent and protect the interests of
the Debtor and its estate; and
(f) perform all other legal services for the Debtor.
Adam Hiller, Esq., the primary attorney in this engagement, will be
paid at his hourly rate of $395.
Mr. Hiller disclosed in a court filing that the firm is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
Adam Hiller, Esq.
Hiller Law, LLC
300 Delaware Avenue, Suite 210
Wilmington, DE 19801
Telephone: (302) 442-7677
Email: ahiller@adamhillerlaw.com
About Duncan Road Academy
Duncan Road Academy, Inc. sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Del. Case No. 23-10445) on April
10, 2023. In the petition signed by Latisha Bracy, director of
operations, the Debtor disclosed under $1 million in both assets
and liabilities.
Judge J. Kate Stickles oversees the case.
Adam Hiller, Esq., at Hiller Law, LLC serves as the Debtor's legal
counsel.
E QUALCOM: Seeks to Hire Sobota PL as Special Counsel
-----------------------------------------------------
E Qualcom Corp. seeks approval from the U.S. Bankruptcy Court for
the Southern District of Florida to employ Sobota PL as its special
counsel.
The Debtor needs a special counsel to represent it in the review
and execution of seller documents pursuant to the sale order of its
real property, and the closing on the real estate transaction.
Peter Sobota, Esq., the primary attorney in this engagement, has
agreed to perform services for a flat fee of $700.
Mr. Sobota disclosed in a court filing that his firm is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
Peter Sobota, Esq.
Sobota PL
12555 Orange Drive
Davie, FL 33330
Telephone: (954) 668-2782
About E Qualcom Corp.
E Qualcom, Corp., filed a petition for relief under Subchapter V of
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No.
22-15957) on Aug. 1, 2022, with $1 million to $10 million in both
assets and liabilities. Aleida Martinez-Molina has been appointed
as Subchapter V trustee.
Judge Peter D. Russin oversees the case.
The Debtor tapped David W. Langley, Attorney at Law, as bankruptcy
counsel and Peter Sobota, Esq., at Sobota PL as special counsel.
ELIZABETH JANE: Seeks to Hire McNamee, Hosea PA as Legal Counsel
----------------------------------------------------------------
Elizabeth Jane, Inc. seeks approval from the U.S. Bankruptcy Court
for the District of Maryland to employ McNamee, Hosea, PA as its
counsel.
The firm will render these services:
(a) prepare and file the petition, schedules, statement of
affairs and other documents required by the court;
(b) represent the Debtor at the initial debtor interview and
meeting of creditors;
(c) counsel the Debtor in connection with the formulation,
negotiation, and promulgation of plans of reorganization and
related documents;
(d) advise the Debtor concerning, and assist in the
negotiation and documentation of financing agreements, debt
restructurings and related transactions;
(e) review the validity of liens asserted against the property
of the Debtor and advise the Debtor concerning the enforceability
of such liens;
(f) prepare all necessary legal documents; and
(g) perform all other legal services.
The hourly rates of the firm's counsel and staff are as follows:
Partners $375
Associates $325
Paralegal $105
Steven Goldberg, Esq., an attorney at McNamee Hosea, disclosed in a
court filing that his firm is a "disinterested person" as that term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Steven L. Goldberg, Esq.
McNamee Hosea, PA
6404 Ivy Lane, Suite 820
Greenbelt, MD 20770
Telephone: (301) 441-2420
Facsimile: (301) 982-9450
Email: goldberg@mhlawyers.com
About Elizabeth Jane Inc.
Elizabeth Jane, Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Md. Case No. 23-12802) on April 24,
2023, with up to $500,000 in assets and up to $1 million in
liabilities. Steven L. Goldberg, Esq., at McNamee Hosea, PA serves
as the Debtor's legal counsel.
EPIC CRUDE: Moody's Assigns B1 Rating to Senior Secured Revolver
----------------------------------------------------------------
Moody's Investors Service assigned EPIC Crude Services, LP's senior
secured revolver due 2026 a B1 rating. The B1 rating for EPIC
Crude's senior secured revolver due 2024 will be withdrawn. EPIC
Crude's other ratings, including its Caa1 Corporate Family Rating,
and stable outlook remain unchanged.
"EPIC Crude's credit agreement amendment is beneficial because it
refinanced the revolver, extended the company's debt maturity
profile and created operating runway to reduce leverage," commented
Jonathan Teitel, a Moody's Senior Analyst.
Assignments:
Issuer: EPIC Crude Services, LP
Backed Senior Secured Revolving Credit Facility, Assigned B1
RATINGS RATIONALE
The super-priority position of EPIC Crude's senior secured revolver
due 2026 and its small size relative to the term loans result in
the facility being rated B1. EPIC Crude's senior secured Term Loan
B due 2026 is rated Caa1. The company's senior secured Term Loan C
due 2026 (unrated) ranks pari passu with the Term Loan B. The term
loans comprise the preponderance of debt, resulting in the Term
Loan B being rated Caa1, the same as the CFR.
EPIC Crude's Caa1 CFR reflects high financial leverage and weak
debt service coverage. Moody's expects increased volumes and rates
in the Permian Basin to drive higher EBITDA. However, there are
risks to the company achieving EBITDA growth and free cash flow to
reduce debt and leverage, and correspondingly increasing debt
service coverage, to more manageable levels. The ability to do so
will depend on the degree to which demand for the company's
pipeline capacity continues to support higher volumes and
transportation rates for contract renewals and to a lesser extent,
additional capacity. EPIC Crude's credit profile benefits from
supportive equity owners, who have made equity contributions in
2020, 2021 and 2022 to support the business. EPIC Crude's contracts
are fixed fee, limiting direct commodity price exposure though
volumes are sensitive to capital spending by producers. The company
benefits from acreage dedications and a growing portion of EPIC
Crude's capacity has minimum volume commitments. The majority of
volumes on the company's system are in the Permian Basin, which is
one of the most economic oil production regions in the US. Some of
EPIC Crude's owners are customers which aligns incentives for them
to move volumes on the system.
Moody's views EPIC Crude's liquidity as weak. Pro forma for the
revolver refinancing, EPIC Crude has a fully drawn $50 million
revolver. The company repaid $25 million of revolver debt with cash
on the balance sheet and reduced the facility size from $75
million. The revolver matures concurrent with the term loan in
March 2026. However, if any amounts on the revolver are repaid, the
company can only redraw up to two times in amounts up to $10
million (unless lender commitments were increased) on the facility
until May 2025. The revolver and term loans have minimum debt
service coverage ratio covenants of 1.1x. The revolver also has a
maximum super-priority leverage ratio covenant of 1x. Moody's
expects the company to maintain compliance with these covenants
into 2024, although higher interest rates will likely reduce
cushion.
The stable outlook reflects Moody's expectation that increased
activities in the Permian Basin will drive higher EBITDA and lower
leverage, as well as Moody's expectation for equity owners to
remain supportive.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
Factors that could lead to an upgrade include volumes sustained at
higher levels supporting EBITDA growth and a clearer pathway
towards substantial debt repayment from free cash flow; debt/EBITDA
below 6.5x; and adequate liquidity.
Factors that could lead to a downgrade include weaker than
anticipated financial performance and declining interest coverage;
worsening liquidity; or Moody's view that default risk is
increasing.
EPIC Crude Services, LP (a subsidiary of EPIC Crude Holdings, LP),
based in Texas, is a privately owned midstream energy business with
oil pipelines running from the Permian and Eagle Ford Basins to
Corpus Christi, Texas. EPIC Crude is owned by affiliates of Ares
Management Corporation; Noble Midstream Partners LP, which is owned
by Chevron Corporation (Aa2 stable); Kinetik Holdings Inc., which
owns Kinetik Holdings LP (Ba1 stable); and Rattler Midstream LP,
which is owned by Diamondback Energy, Inc. (Baa2 stable).
The principal methodology used in this rating was Midstream Energy
published in February 2022.
FARMHOUSE CREATIVE: Court OKs Cash Collateral Access Thru May 25
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida,
Orlando Division, authorized Farmhouse Creative, LLC to use cash
collateral on an interim in accordance with the budget, through May
25, 2023.
The Debtor is permitted to use cash collateral to pay: (a) amounts
expressly authorized by the Court, including payments to the
Subchapter V Trustee and payroll obligations incurred post-
petition in the ordinary course of business; (b) the current and
necessary expenses set forth in the budget, with a 10% variance;
and (c) additional amounts as may be expressly approved in writing
by Florida Business Development Corporation.
As adequate protection for the use of cash collateral, the Secured
Creditor will have a perfected post-petition lien against cash
collateral to the same extent and with the same validity and
priority as the prepetition lien, without the need to file or
execute any documents as may otherwise be required under applicable
non-bankruptcy law.
The Debtor will maintain insurance coverage for its property in
accordance with the obligations under all applicable loan and
security documents.
A further hearing on the matter is set for May 25 at 10 a.m.
A copy of the Court's order and the Debtor's budget is available at
https://bit.ly/3oY6kx2 from PacerMonitor.com.
The Debtor projects total expenses, on a weekly basis, as follows:
$2,035 for the week ending May 1, 2023;
$1,238 for the week ending May 8, 2023;
$2,000 for the week ending May 15, 2023; and
$241 for the week ending May 22, 2023.
About Farmhouse Creative, LLC
Farmhouse Creative, LLC is a closely held Florida limited liability
company formed in 2019 for the purpose of acquiring and operating
the KidzArt Orlando franchise. KidzArt Orlando offers a unique art
enrichment program where children can learn to draw, learn about
art, and enhance their creativity.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 23-00178) on January 18,
2023. In the petition signed by Dawn Farmer, managing member, the
Debtor disclosed up to $500,000 in both assets and liabilities.
Judge Tiffany P. Geyer oversees the case.
Daniel A. Velasquez, Esq., at Latham Luna Eden and Beaudine LLP,
represents the Debtor as legal counsel.
FGV FRESNO: Unsecured Creditors to be Paid in Full in Sale Plan
---------------------------------------------------------------
FGV Fresno LP, filed with the U.S. Bankruptcy Court for the Central
District of California a Disclosure Statement describing Chapter 11
Plan dated May 1, 2023.
Debtor is a California limited partnership formed on February 22,
2019. The Group of Companies, Inc. holds a 1% interest in the
Debtor and is the General Partner of the Debtor. MGM Holdings, LLC,
holds a 99% interest in the Debtor.
Debtor owns real property consisting of a 3 Story, 56,760 sq. ft.,
apartment building, on 2.1271 acres ("Property"). Pursuant to the
inspection report conducted by United Security Bank, Debtor's
lender on the Property, the improvements on the Property are 88%
complete and can be completed in approximately 6 months to house
250 residents.
The Property was purchased by Debtor on or about April 15, 2019 for
$3.5 million and has been rehabilitated by Debtor since its
purchase. Unbeknownst to Debtor, at the time of the purchase of the
Property, the prior owner of the Property, Rodney Bernaldo and
Ruanne Bernaldo, as co-trustees of the Bernaldo Family Trust Dated
May 4, 2013 ("Bernaldo Trust") had been sued by the existing
tenants ("Tenants") for various claims, including habitability of
the Property ("Tenant Lawsuit").
The Tenant Lawsuit was not disclosed to the Debtor at any time
prior to the purchase of the Property. After Debtor purchased the
Property, Debtor resolved the habitability issues and filed
unlawful detainer actions to have all existing tenants removed from
the Property. Since then Debtor has been rehabilitating the
Property. The Property is now vacant and listed for sale. The
Tenant Lawsuit remains pending, and Debtor is vigorously defending
the Tenant Lawsuit (through Farmers Insurance Company), including
asserting counterclaims against the plaintiffs for vandalism and
the resulting damage to the Property caused by the Tenants.
The Plan contemplates that the Debtor will liquidate its assets and
distribute the proceeds and funds on hand to its Creditors on
account of Allowed Claims and Interest Holders in accordance with
the priorities set forth in the Bankruptcy Code. The Debtor will
continue to be managed by its current management following the
Effective Date of the Plan.
Class 4 consists of all General Unsecured Claims that are not
Administrative Claims or Priority Claims. Based upon the $9,300,000
value of the Property, Allowed General Unsecured Claims will be
paid in full on the Effective Date.
If a Class 4 Claim is disputed on the Effective Date, then pending
resolution of the dispute by a Final Order, the Debtor will reserve
sufficient funds to pay the Disputed Claim as agreed or as ordered
by the Court. Once the dispute is resolved by a Final Order, the
Debtor will make a Distribution on account of the Allowed Class 4
Claim in accordance with the treatment described.
If Debtor (1) fails to make any payment required under this Plan,
or (2) fails to perform any other obligation required under this
Plan for more than 14 days after the time specified in this Plan,
or (3) performs any act that is inconsistent with the terms of this
Plan, then a holder of an Allowed Class 4 Claim may file and serve
upon Debtor and Debtor's attorney a written notice of default at
their most recent address(es) listed in this Case. Debtor is in
material default under this Plan if Debtor fails within 21 days
after service of that notice of default, plus an additional 3 days
if served by mail, either to cure the default or obtain from the
court an extension of time to cure the default or a determination
that no material default occurred.
Class 5 consists of Interest Holders. Interest Holders are the
parties who hold ownership interests in the Debtor. After the
payment to Classes 1-4, all remaining property of the Debtor's
estate – after consummation of the sale of the Property pursuant
to the terms of the Plan – shall be revested in the Debtor on the
Effective Date and Interests in the Debtor shall be retained and
are unimpaired.
Funding for the Plan shall come from the Debtor's sale of the
Property. Debtor is selling the Property through a separately filed
motion for order authorizing the sale of the Property.
The Distributions to creditors under the Plan will be funded
primarily from the following sources: (a) the Debtor's cash on hand
on the Effective Date, and (b) the net proceeds (after payment of
broker's commissions, escrow fees and other costs of sale) from the
sale of the Property which Debtor anticipates closing on or before
October 31, 2023. Debtor anticipates that the net proceeds from the
sale of the Property will be sufficient to pay off all Creditors
the amount of their Allowed Claims in full.
A full-text copy of the Disclosure Statement dated May 1, 2023 is
available at https://bit.ly/3p3gMnh from PacerMonitor.com at no
charge.
Attorney for the Debtor:
Robert P Goe, Esq.
Goe Forsythe & Hodges, LLP
17701 Cowan, Suite 210
Irvine, CA 92614
Telephone: (949) 798-2460
Facsimile: (949) 955-9437
Email: rgoe@goeforlaw.com
About FGV Fresno
FGV Fresno LP, a limited partnership in Irvine, Calif., is
primarily engaged in renting and leasing real estate properties.
FGV Fresno filed its voluntary petition for Chapter 11 protection
(Bankr. C.D. Calif. Case No. 23-10170) on Jan. 31, 2023, with $10
million to $50 million in assets and $1 million to $10 million in
liabilities. Judge Scott C. Clarkson oversees the case.
The Debtor tapped Robert P Goe, Esq., at Goe Forsythe & Hodges, LLP
as legal counsel.
FIELDERS CHOICE: Seeks Cash Collateral Access
---------------------------------------------
Fielders Choice, LLC asks the U.S. Bankruptcy Court for the Middle
District of Florida, Orlando Division, for authority to use cash
collateral and provide adequate protection to Seacoast National
Bank and to the extent necessary, to the inferior interest who may
assert a lien or security interest in the Debtor's cash
collateral.
The inferior interests are Amazon Lending, CT Corporation System,
as representative, CHTD Company, First Corporation Solutions, as
representative, and SellersFunding Corp. assigned to Fasanara
Securitisation SA, acting for and on behalf of its Compartment L.
The Debtor is an online retailer selling sports-related products
and fan merchandise online through amazon.com and other online
retailers. Although the Debtor's business has historically been
successful and profitable, the Debtor's finances have become
burdened with usurious and unconscionable loans from merchant cash
advance lenders that have caused cash flow issues that have
spiraled to become unmanageable. The Debtor was inundated with
offers from merchant cash advance lenders and unfortunately made an
improvident decision to accept a loan offer from an MCA lender.
Unfortunately, that loan almost immediately became unmanageable and
unserviceable due to the massively high, usurious interest rates,
which caused cash flow issues for the business. The Debtor was then
inundated with additional offers from MCA lenders as a way to
address the Debtor's cash flow issues, and again the Debtor
improvidently accepted, which then drastically exacerbated the
Debtor's financial and cash flow issues with additional predatory
loans from MCA lenders that are imposing massive and unnecessary
fees, interest, and other costs on the Debtor.
The MCA lenders' ability to unilaterally take funds from the
Debtor's bank accounts have made it difficult for the Debtor to
operate. The Debtor's cash flow has been further hindered by a
reduction in revenue resulting in reduced sales, as well as an
increase in operating costs.
As of the Petition Date, the Debtor has approximately $35,589 of
cash in deposit accounts; and the Debtor has inventory valued at
approximately $94,139. The Debtor's earnings going forward may
arguably be subject to creditors' alleged liens, and to the extent
that future earnings may be deemed to be cash collateral, the
Debtor seeks authority to use them.
The Debtor owes approximately $379,302 to Seacoast National Bank,
which is secured by a blanket lien on the Debtor's personal
property, including inventory valued at approximately $94,633, and
approximately $34,849 in funds on deposit with Seacoast National
Bank.
The Debtor owes approximately $277,023 to Amazon Lending.
A copy of the Debtor's motion and budget is available at
https://bit.ly/3AFSX7r from PacerMonitor.com.
The Debtor projects total operating expenses, on a monthly basis,
as follows:
$102,730 for May 2023;
$93,408 for June 2023;
$102,780 for July 2023; and
$102,780 for August 2023.
About Fielders Choice, LLC
Fielders Choice, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 23-01562) on April 25,
2023. In the petition signed by Richard Berny, managing member, the
Debtor disclosed $132,356 in assets and $1,355,511 in liabilities.
Jeffrey S. Ainsworth, Esq., at Bransonlaw, PLLC, represents the
Debtor as legal counsel.
FIRST REPUBLIC BANK: S&P Lowers ICR to 'CC', On Watch Negative
--------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on First
Republic Bank to 'CC' from 'B+'. In addition, S&P lowered its issue
credit ratings on First Republic Bank's subordinated debt to 'D'
from 'B-' and outstanding issues of preferred stock to 'D' from
'C'. The issuer credit rating remains on CreditWatch with negative
implications.
S&P said, "Subsequent to the downgrades, we withdrew the issuer
credit rating on First Republic Bank and issue ratings on its
subordinated debt and its outstanding preferred stock. At the same
time, we withdrew legacy issue ratings on previously redeemed
preferred stock.
"We lowered our issuer credit rating on First Republic Bank to 'CC'
following the California Department of Financial Protection and
Innovation's May 1 announcement that it took possession of the bank
and appointed the Federal Deposit Insurance Corp. (FDIC) as
receiver. Following the closing of the bank, the FDIC sold
substantially all of First Republic's assets and deposits to
JPMorgan Chase & Co. JPMorgan did not assume any of First
Republic's corporate debt or preferred stock and assumed only a
portion of its secured borrowings. Given that First Republic is in
receivership and JPMorgan has assumed the vast majority of its
assets, we think it's a virtual certainty that First Republic will
default on any remaining senior financial obligations given what we
assume would be an insufficient remaining asset base.
"We also lowered our issue credit ratings on First Republic's
subordinated debt and preferred stock to 'D'."
Environmental, Social, And Governance
ESG credit indicators: To N/A, N/A, N/A; From: E-2, S-2, G-4
FORD CITY RX: Seeks to Hire C. Taylor Crockett as Legal Counsel
---------------------------------------------------------------
Ford City RX, LLC seeks approval from the U.S. Bankruptcy Court for
the Northern District of Alabama to employ C. Taylor Crockett,
Esq., an attorney practicing in Birmingham, Ala., to handle its
Chapter 11 case.
Mr. Crockett will render these services:
(a) advise the Debtor of its powers, and duties in the
continued management of its financial affairs and property;
(b) prepare legal papers;
(c) review all leases and other corporate papers and prepare
necessary motions to assume unexpired leases or executory contracts
and assist in the preparation of corporate authorizations and
resolutions regarding the Chapter 11 case; and
(d) perform all other legal services for the Debtor.
Mr. Crockett will be paid at his hourly rate of $425. He also
received a retainer of $12,500 plus filing fee of $1,738.
The attorney disclosed in a court filing that he is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The attorney can be reached at:
C. Taylor Crockett, Esq.
C. Taylor Crockett, PC
2067 Columbiana Road
Birmingham, AL 35216
Telephone: (205) 978-3550
Email: taylor@taylorcrockett.com
About Ford City RX
Ford City RX, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ala. Case No. 23-80761) on April 24,
2023. Michael Keith Sigmon, managing member, signed the petition.
Judge Clifton R. Jessup Jr. oversees the case.
C. Taylor Crockett, Esq., represents the Debtor as legal counsel.
FRANKLIN SOUTHERN: Seeks Cash Collateral Access
-----------------------------------------------
Franklin Southern Manufacturing LLC asks the U.S. Bankruptcy Court
for the Middle District of Florida, Jacksonville Division, for
authority to use cash collateral.
The Debtor requires the use of cash collateral to meet
post-petition contractual and tax obligations related to payroll,
inventory and equipment owned by the Debtor and ongoing business
operations.
The Debtor executed a Promissory Note and Chattel Mortgage and
Security Agreement to Reibus International, Inc. in the original
principal amount of $2.5 million in which the rents, accounts
receivables, chattel paper, contracts, documents, cash, bank
accounts, etc. were pledged as collateral.
Wells Fargo Bank and Fora Financial Advance, LLC also asserts an
interest in the Debtor's cash collateral.
The Debtor estimates the value of the cash and accounts receivable
to be approximately $212,251 based on a current aging report of
receivables less than 90 days old.
The Debtor is willing to enter into an agreement with the primary
secured creditor to provide a post-petition replacement lien of a
continuing nature on all post-petition accruing cash collateral to
the secured creditor.
A copy of the Debtor's motion and budget is available at
https://bit.ly/3ncD5q2 from PacerMonitor.com.
The Debtor projects $630,000 in total sales revenue and $194,269 in
total operating expenses.
About Franklin Southern Manufacturing, LLC
Franklin Southern Manufacturing, LLC sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No.
23-00938) on April 27, 2023. In the petition signed by Billy
Sermons, president and CEO, the Debtor disclosed $473,665 in total
assets and $6,325,214 in total liabilities.
Bryan K. Mickler, Esq., at the Law Offices of Mickler and Mickler,
LLP, represents the Debtor as legal counsel.
FTX GROUP: Sells LedgerX to MIAX for $50 Million
------------------------------------------------
Yueqi Yang and Katherine Doherty of Bloomberg News report that FTX
has agreed to sell LedgerX, its crypto-derivatives platform, to the
owner of Miami International Securities Exchange for about $50
million.
LedgerX was one of the few solvent pieces of Sam Bankman-Fried's
former empire. The deal would give the exchange, known as MIAX and
owned by Miami International Holdings Inc., a registered platform
to expand its presence in the crypto industry.
"We are pleased to reach this agreement," said John J. Ray III,
chief executive officer of FTX, in a statement Tuesday, April 25,
2023, calling it "an example of our continuing efforts to monetize
assets to deliver recoveries to stakeholders."
About FTX Group
FTX is the world's second-largest cryptocurrency firm. FTX is a
cryptocurrency exchange built by traders, for traders. FTX offers
innovative products including industry-first derivatives, options,
volatility products and leveraged tokens.
Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that
FTX paused customer withdrawals after it was hit with roughly $5
billion worth of withdrawal requests.
Faced with liquidity issues, FTX on Nov. 9 struck a deal to sell
itself to its giant rival Binance, but Binance walked away from the
deal amid reports on FTX regarding mishandled customer funds and
alleged US agency investigations.
At 4:30 a.m. on Nov. 11, Bankman-Fried ultimately agreed to step
aside, and restructuring vet John J. Ray III was quickly named new
CEO.
FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc.
(d/b/a FTX US), Alameda Research Ltd. and certain affiliated
companies then commenced Chapter 11 proceedings (Bankr. D. Del.
Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022.
Additional entities sought Chapter 11 protection on Nov. 14, 2022.
FTX Trading and its affiliates each listed $10 billion to $50
million in assets and liabilities, making FTX the biggest
bankruptcy filer in the US this year. According to Reuters, SBF
shared a document with investors on Nov. 10, 2022, showing FTX had
$13.86 billion in liabilities and $14.6 billion in assets.
However, only $900 million of those assets were liquid, leading to
the cash crunch that ended with the company filing for bankruptcy.
The Hon. John T. Dorsey is the case judge.
The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel;
Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal
North America, LLC as financial advisor. Kroll is the claims agent,
maintaining the page https://cases.ra.kroll.com/FTX/Home-Index
The Official Committee of Unsecured Creditors tapped Paul Hastings
as counsel, FTI Consulting, Inc., as financial advisor, and
Jefferies LLC as the investment banker. Young Conaway Stargatt &
Taylor LLP is the Committee's Delaware and conflicts counsel.
Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory
T. Donilon, Edward L. Schnitzer, and David M. Banker, is
representing Sam Bankman-Fried in the Chapter 11 cases.
White-collar crime specialist Mark S. Cohen has reportedly been
hired to represent SBF in litigation. Lawyers at Paul Weiss
previously represented SBF but later renounced representing the
entrepreneur due to a conflict of interest.
GENESIS CAPITAL: Creditors Oppose Bankruptcy Settlement
-------------------------------------------------------
Protos reports that a group of Genesis Capital's creditors have
"reneged" on a bankruptcy settlement deal agreed upon in February,
according to a Twitter statement by parent company Digital Currency
Group (DCG).
The creditors have demanded new settlement details that will delay
court proceedings, according to DCG. "More than two months after
all parties agreed to a comprehensive settlement that was submitted
by Genesis Capital to the bankruptcy court, a group of Genesis
Capital's creditors have reneged and raised all new demands," the
tweet read.
"We do not know if the hundreds of thousands of individual
creditors are aware of this development, but the latest maneuver
will prolong the court process."
Genesis filed for bankruptcy protection back in January 2023, after
the collapse of hedge fund Three Arrows Capital and crypto exchange
FTX deeply impacted its ability to survive. Genesis now owes over
$3.6 billion to its top 50 creditors, including Gemini. Its
founders, the Winklevoss twins, previously threatened to sue DCG in
regards to over $900 million lost to Genesis.
These new undisclosed demands by creditors are likely to shake the
faith of others, many of whom have already decided that a
bankruptcy deal for Genesis wasn't worth banking on.
In February 2023, Protos reported that some Genesis creditors
decided to sell their claims. Stephen Sokolowski, a crypto mining
executive, sold his $4 million claim against Genesis for just $1
million, or $0.25 on the dollar, to a fund managed by investment
bank Jeffries.
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.
GOTO GROUP: Lenders Hire Lawyers Due to Restructuring Fears
-----------------------------------------------------------
Reshmi Basu of Bloomberg News reports that some of software company
GoTo Group Inc.'s lenders are getting advice from law firm Paul
Weiss Rifkind Wharton & Garrison amid concerns that a potential
debt restructuring would impact their recoveries on the debt,
according to people with knowledge of the matter.
Those lenders are concerned that GoTo -- formerly known as LogMeIn
-- could pursue aggressive debt maneuvers like shifting assets out
of reach of existing creditors. The Boston-based company's credit
agreement allows it to move assets into a new legal entity, a
common step some companies take before borrowing more money against
them.
About GoTo Group Inc.
GoTo, formerly LogMeIn Inc., is a flexible-work provider of
software as a service and cloud-based remote work tools for
collaboration and IT management.
GUARDIAN FUND: Taps Harris Law Practice as Bankruptcy Counsel
-------------------------------------------------------------
Guardian Fund, LLC seeks approval from the U.S. Bankruptcy Court
for the District of Nevada to employ Harris Law Practice LLC as its
bankruptcy counsel.
The firm will render these legal services:
(a) examine and prepare records and reports as required by the
Bankruptcy Code, Federal Rules of Bankruptcy Procedure and Local
Bankruptcy Rules;
(b) prepare applications and proposed orders to be submitted
to the court;
(c) identify and prosecute claims and causes of action
assertable by the Debtor on behalf of the estate;
(d) examine proofs of claim anticipated to be filed and the
possible prosecution of objections to certain claims;
(e) advise the Debtor and prepare documents in connection with
the contemplated ongoing operation of the Debtor's business;
(f) assist and advise the Debtor in performing other official
functions; and
(g) advise and prepare a plan of reorganization and related
documents and confirmation of said plan.
The hourly rates of the firm's attorneys and staff are as follows:
Stephen R. Harris, Esq. $635
Norma Guariglia, Esq. $475
Paraprofessionals $175
The Debtor paid the firm $50,000 in preparation of the Chapter 11
filing.
Stephen Harris, Esq., an attorney at Harris Law Practice, disclosed
in a court filing that the firm is a "disinterested person" as that
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Stephen R. Harris, Esq.
Norma Guariglia, Esq.
Harris Law Practice LLC
5440 Louie Lane, Suite 106
Reno, NV 89511
Telephone: (775) 786-7600
Facsimile: (775) 786-7764
Email: steve@harrislawreno.com
norma@harrislawreno.com
About Guardian Fund
The WendellLa and Nancy King Family Trust and several other
creditors represented by Jeffrey L. Hartman filed a Chapter 7
involuntary petition (Bankr. D. Nev. Case No. 23-50117) against
Guardian Fund, LLC, a company in Reno, Nev., on March 17, 2023.
On April 11, 2023, Guardian Fund filed a Chapter 11 voluntary
petition (Bankr. D. Nev. Case No. 23-50233). At the time of the
filing, Guardian Fund reported $10 million to $50 million in assets
and $50 million to $100 million in liabilities.
On April 27, 2023, the Nevada bankruptcy court approved the
stipulation filed in both cases by Guardian Fund and the
petitioning creditors. The order directed the consolidation of the
two cases, with Case No. 23-50177 as the lead case, and set the
Chapter 11 petition date to March 17, 2023.
Judge Natalie M. Cox oversees the case.
Harris Law Practice, LLC serves as the Debtor's legal counsel.
HARVEST MIDSTREAM: S&P Affirms 'BB-' ICR, Outlook Stable
--------------------------------------------------------
S&P Global Ratings affirmed its 'BB-' issuer credit rating on
Harvest Midstream I L.P. (Harvest) and its 'BB-' issue-level rating
on the senior unsecured notes.
S&P said, "The '3' recovery rating on the company's senior
unsecured debt is unchanged, and indicates our expectation for
meaningful (50%-70%; rounded estimate: 65%) recovery in the event
of a payment default.
"The stable outlook reflects our expectation that Harvest will
continue to successfully operate its existing assets and integrate
the Paradigm assets."
Debt-financed acquisition will modestly increase our expected
leverage.
Harvest will finance the Paradigm acquisition by issuing a TLA with
existing lenders and using the RCF, which will increase leverage
during our forecast period. S&P said, "At the same time, we expect
the EBITDA contribution from Paradigm will partially offset the
increased debt. In addition, the TLA's 10% mandatory amortization
feature improves the forecast leverage profile, dampening the
impact of Harvest's slight decline in expected EBITDA. As a result,
we forecast leverage of about 3.7x-4.0x in 2023, declining slightly
to about 3.5x-3.8x by 2025. In conjunction with the senior secured
TLA issuance, the company will increase its RCF to $700 million
from $650 million (expires 2027). We also anticipate that
Paradigm's debt will be fully repaid before closing."
Harvest's acquisition of Paradigm will expand the company's scale
while diversifying into new geographies.
The acquisition will increase Harvest's scale while also improving
its geographic and customer diversity by giving the company
exposure to the Bakken basin. S&P Said, "We note that the
acquisition of the Alliance Terminal in Louisiana and consolidation
of several assets in 2022 have also bolstered Harvest's scale.
Harvest's pro forma geographic exposure by EBITDA will be composed
of about 32% San Juan basin, 24% Alaska (North Slope and Cook
Inlet), 17% Texas, 16% North Dakota (Bakken), and 11% Louisiana. At
the same time, we view some of these basins, such as the North
Slope, as higher cost, which offsets some of the geographic
diversity."
Harvest will realize incremental EBITDA from Paradigm and previous
acquisitions, partially offset by declining revenues at
Trans-Alaska Pipeline System (TAPS).
S&P said, "We expect Harvest will realize an increase in run-rate
annual EBITDA from Paradigm for our forecast period, which will be
partially offset by declining TAPS revenues. Although the Paradigm
acquisition will be immediately accretive, volumes are declining on
the TAPS pipeline as contracts are not renewed and Hilcorp Energy I
L.P.'s shipment volumes decline. The Alliance Terminal acquisition
in Louisiana and prior consolidation of Arrowhead Gulf Coast
Holdings (AGCH) and Arrowhead South Texas Holdings (ASTH) are
accretive and will increase Harvest's EBITDA.
"The stable outlook reflects our expectation that Harvest will
maintain stable volumes across its systems in the near term and
benefit from the Paradigm acquisition. Debt to EBITDA is expected
to be in the 3.6x-4.0x range for 2023 and 2024.
"We could consider a negative rating action if we expect adjusted
debt to EBITDA will stay above 4.0x. This would likely be due to
lower-than-expected volumes and EBITDA; relevering to finance
acquisitions; loss of meaningful volumes on TAPS due to contracts
expiring; or if Hilcorp Energy I L.P. is materially downgraded,
given Harvest's high exposure to its volumes.
"Although unlikely in the near term, we could raise our rating if
the company maintains debt to EBITDA below 3.0x, while diversifying
its operating basins to lower break-even basins."
ESG credit indicators: E-3; S-2; G-2
S&P said, "Environmental factors are a moderately negative
consideration in our credit rating analysis of Harvest. The
company's gathering and processing business faces multiple risks
relating to climate change, including volume declines and the
general energy transition pressures facing the midstream industry.
While we believe the business concentration in Alaska and the Four
Corners region has its upside, producers are demonstrating greater
capital discipline and could re-allocate capital to more prolific
basins, adversely affecting Harvest's underlying business."
HOVA MANAGEMENT: Taps Magic Home Realty as Real Estate Broker
-------------------------------------------------------------
Hova Management Group Corp. seeks approval from the U.S. Bankruptcy
Court for the Eastern District of New York to employ Magic Home
Realty Corp. as its real estate broker.
The Debtor needs a broker to assist in the marketing and sale of
its real property located at 92-14 175 St., Jamaica, N.Y.
The broker will receive a commission of 6 percent of the contract
price.
As disclosed in court filings, Magic Home Realty is a
"disinterested person" within the meaning of Section 101(14) of the
Bankruptcy Code.
The firm can be reached at:
Magic Home Realty Corp.
8806 162nd St.
Jamaica, NY 11432
Telephone: (718) 297-1800
Facsimile: (718) 297-0656
About Hova Management Group
Hova Management Group Corp. is engaged in activities related to
real estate. The Debtor owns four properties in Jamaica, N.Y.
valued at $4.8 million.
Hova Management Group filed a petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. E.D.N.Y. Case No. 23-70902) on March
16, 2023, with $5,378,101 in total assets and $3,903,282 in total
liabilities. Esmaeil Hosseinipour, president of Hova Management
Group, signed the petition.
Judge Elizabeth S. Stong oversees the case.
The Law Office of Alan C. Stein PC serves as the Debtor's counsel.
HUMAN HOUSING: Trustee Seeks to Hire Gray Ice Higdon as Counsel
---------------------------------------------------------------
Elizabeth Woodward, the trustee appointed in the Chapter 11 case of
Human Housing Henrietta Hyatt, LLC, seeks approval from the U.S.
Bankruptcy Court for the Western District of Kentucky to employ
Gray Ice Higdon, PLLC as her counsel.
The firm will render these services:
(a) advise the trustee of her powers and duties in the
recovery of assets;
(b) take all necessary action to protect and preserve the
estate;
(c) prepare legal papers; and
(d) perform any and all other legal services for the trustee
in connection with this Chapter 11 Sub V case.
The hourly rates of the firm's counsel and staff are as follows:
Andrew Stosberg, Esq. $425
Liz Howard, Paralegal $225
The firm will also seek reimbursement for expenses incurred.
Andrew Stosberg, Esq., an attorney at Gray Ice Higdon, disclosed in
a court filing that his firm is a "disinterested person" as that
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Andrew D. Stosberg, Esq.
Gray Ice Higdon, PLLC
4600 Shelbyville Road, #8022
Louisville, KY 40257
Telephone: (502) 625-2734
Facsimile: (502) 561-0442
Email: astosberg@grayice.com
About Human Housing Henrietta Hyatt
Human Housing Henrietta Hyatt, LLC, a company in Louisville, Ky.,
sought protection for relief under Chapter 11 of the Bankruptcy
Code (Bankr. W.D. Ky. Case No. 22-30060) on Jan. 17, 2022. In the
petition signed by Paulette Long, member and manager, the Debtor
listed up to $863,930 in total assets and $1,149,889 in total
liabilities.
Judge Alan C. Stout oversees the case.
James F. Guilfoyle, Esq., at Guilfoyle Law Office, LLP serves as
the Debtor's legal counsel.
Elizabeth Woodward, the Chapter 11 trustee appointed in the case,
is represented by Gray Ice Higdon, PLLC.
IDAHO ALLERGY: Taps Michael Jay Berger as Bankruptcy Counsel
------------------------------------------------------------
Idaho Allergy, LLC seeks approval from the U.S. Bankruptcy Court
for the Central District of California to employ the Law Offices of
Michael Jay Berger as its bankruptcy counsel.
The firm will render these legal services:
(a) communicate with creditors of the Debtor;
(b) review the Debtor's Chapter 11 bankruptcy petition and all
supporting schedules;
(c) advise the Debtor of its legal rights and obligations in a
bankruptcy proceeding;
(d) work to bring the Debtor into full compliance with
reporting requirements of the Office of the U.S. Trustee;
(e) prepare status reports as required by the court;
(f) respond to any motions filed in the Debtor's bankruptcy
proceeding; and
(g) respond to creditor inquiries;
(h) review proofs of claim filed in the Debtor's bankruptcy
and object to inappropriate claims;
(i) prepare Notices of Automatic Stay in all state court
proceedings in which the Debtor is sued; and
(j) if appropriate, prepare a Chapter 11 Plan of
Reorganization for the Debtor.
The hourly rates of the firm's attorneys and staff are as follows:
Michael Jay Berger, Esq. $595
Sofya Davtyan, Senior Associate Attorney $545
Carolyn M. Afari, Mid-level Associate Attorney $435
Robert Poteete, Mid-level Associate Attorney $435
Angeline Smirnoff, Associate Attorney $395
Senior Paralegals and Law Clerks $250
Bankruptcy Paralegals $200
Danish Rehman, the Debtor's principal's friend, paid the firm
$20,000 retainer.
Michael Jay Berger, Esq., the sole owner of the Law Offices of
Michael Jay Berger, disclosed in a court filing that his firm is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
Michael Jay Berger, Esq.
Law Offices of Michael Jay Berger
9454 Wilshire Blvd., 6th Floor
Beverly Hills, CA 90212-2929
Telephone: (310) 271-6223
Facsimile: (310) 271-9805
Email: michael.berger@bankruptcypower.com
About Idaho Allergy
Idaho Allergy, LLC applies the latest scientific and medical
advances to provide patient care and treatment for allergies,
asthma, and COPD. The company is based in Los Angeles, Calif.
Idaho Allergy sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Calif. Case No. 23-12146) on April 10,
2023. In the petition signed by its chief executive officer,
Sanjeev Jain, the Debtor disclosed up to $50,000 in assets and up
to $10 million in liabilities.
Judge Deborah J. Saltzman oversees the case.
Michael Jay Berger, Esq., at the Law Offices of Michael Jay Berger,
represents the Debtor as legal counsel.
INTERNAP HOLDING: Seeks Cash Collateral Access
----------------------------------------------
Internap Holding LLC and its debtor-affiliates ask the U.S.
Bankruptcy Court for the District of Delaware for authority to use
cash collateral and provide adequate protection.
The Debtors require immediate access to liquidity to ensure they
are able to continue operating during the Chapter 11 cases,
preserve the value of their estates for the benefit of all parties
in interest, and pursue value-maximizing restructuring transactions
consistent with a Restructuring Support Agreement and the
bankruptcy-exit plan.
The Debtors, each Delaware limited liability companies, commenced
the Chapter 11 Cases with the support of 66.74% of the SOTL Lenders
in dollar amount and a majority in number to effectuate a
debt-for-equity transaction pursuant to the terms of a pre-petition
Restructuring Support Agreement effective as of April 26, 2023.
Contemporaneously with the filing of the Chapter 11 cases, the
Debtors filed their Plan of Reorganization and accompanying
Disclosure Statement.
In connection with its emergence from the 2020 Chapter 11 Cases, on
May 8, 2020, INAP entered into (i) a Senior Secured Term Loan
Credit Agreement by and among INAP, the domestic subsidiaries of
INAP party thereto as guarantors, the lenders party thereto, and
Wilmington Trust, National Association as administrative agent and
collateral agent which initially memorialized the loans in the
aggregate principal amount of $75.1 million, and (ii) the Second
Out Term Loan Credit Agreement by and among INAP, the domestic
subsidiaries of INAP party thereto as guarantors, the lenders party
thereto, and Wilmington Trust, National Association as
administrative agent and collateral agent, which initially
memorialized the loans in the aggregate principal amount of $225
million.
The obligations under the PTL Credit Agreement were repaid in part
in connection with (i) INAP's August 2, 2021 sale of iWeb
Technologies Inc., and (ii) INAP's May 6, 2022 sale of the Network
Business. All obligations under the PTL Credit Agreement were
repaid in full on September 27, 2022 in connection with the
September 6, 2022 sale of the Colocation Business.
As of the Petition Date, INAP is the borrower under the SOTL Credit
Agreement. The amount outstanding as of the Petition Date under the
SOTL Credit Agreement to the SOTL Lenders is $127.778 million,
consisting of $125.7 million in principal amount due and accrued
and unpaid cash interest of $2.097 million. INAP's obligations
under the SOTL Credit Agreement are secured by liens on
substantially all of the Debtors' assets.
The maturity date for the SOTL Credit Agreement is May 8, 2025.
The Debtors propose to provide the SOTL Lenders with these forms of
adequate protection:
1. Adequate Protection Claims. Solely to the extent of any
Diminution in Value, the Debtors will grant the SOTL Lenders
allowed superpriority administrative claims, which superpriority
claims will have priority over all administrative expenses of the
kind specified in, or ordered pursuant to, any provision of the
Bankruptcy Code, subject and subordinate only to the Carve Out.
2. Adequate Protection Liens. The Debtors will provide
adequate protection liens to the SOTL Lenders, in any unencumbered
assets and Avoidance Actions, solely to the extent of any
Diminution in Value of their interests in the Prepetition
Collateral, including Cash Collateral, subject and subordinate only
to the Carve Out. The Debtors do not believe that there are any
unencumbered assets.
A copy of the motion is available at https://bit.ly/3p3TH3y from
PacerMonitor.com.
About Internap Holding LLC
Internap Holding LLC and its affiliates provide compute resources
(i.e., an IT industry term referring to the ability to process
data) and storage services on demand via an integrated platform.
Their services include: (a) bare metal which are dedicated,
single-tenant servers utilizing Intel and AMD processors enabling
high-performance compute with rapid deployment, increased control,
enhanced security, and flexible configurations); (b) hosted private
cloud environments; (c) cloud computing backup services; and (d)
managed security to keep customer data secure and in alignment
with compliance requirements.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Lead Case No. 23-10529) on April
28, 2023. In the petition signed by Michael T. Sicoli, chief
executive officer, the Debtor disclosed up to $500 million in both
assets and liabilities.
Judge Craig T. Goldblatt oversees the case.
The Debtors tapped Saul Ewing LLP and Jenner and Block LLP, as
legal counsel, FTI Consulting as financial advisor, and Stretto,
Inc. as claims and noticing agent.
JBP HOLDINGS: Seeks to Tap Laxmi Sarathy as Bankruptcy Counsel
--------------------------------------------------------------
JBP Holdings, LLC seeks approval from the U.S. Bankruptcy Court for
the Northern District of Illinois to employ Laxmi Sarathy, Esq., an
attorney practicing in Chicago, Ill., to handle its Chapter 11
case.
Ms. Sarathy will render these services:
(a) advise the Debtor with respect to its powers and duties;
(b) negotiate, draft, and pursue all documentation necessary
in this case;
(c) prepare legal papers;
(d) perform necessary legal work regarding approval of the
disclosure statement(s) (if required) and plan;
(e) appear in court and in protect the interests of the Debtor
before the court;
(f) assist with any disposition of the Debtor's assets, by
sale or otherwise;
(g) attend all meetings and negotiate with representatives of
creditors, the United States Trustee, and other
parties-in-interest;
(h) advise the Debtor regarding bankruptcy law, corporate law,
corporate governance, transactional, tax, labor, litigation, and
other issues in connection with its ongoing business operations;
and
(i) perform other necessary legal work as required for this
case.
Ms. Sarathy will be paid at her hourly rate of $375. Paralegals
will be paid an hourly fee of $100.
In court filings, Ms. Sarathy disclosed that she is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The attorney can be reached at:
Laxmi P. Sarathy, Esq.
17W775 Butterfield Rd, Suite 114
Chicago, IL 60181
Telephone: (312) 674-7965
Facsimile: (312) 873-4774
Email: Lsarathy@whitestonelawgroup.com
About JBP Holdings
JBP Holdings, LLC, a company in Chicago, Ill., sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case
No. 23-04034) on March 27, 2023. In the petition signed by Zhiling
Pang, manager, the Debtor disclosed $561,200 in total assets and
$28,100,000 in total liabilities.
Judge Deborah L. Thorne oversees the case.
Laxmi P. Sarathy, Esq., represents the Debtor as legal counsel.
JDI DATA: Chapter 11 Trustee Taps Bast Amron as Legal Counsel
-------------------------------------------------------------
Scott Brown, Chapter 11 trustee for JDi Data Corporation, seeks
approval from the U.S. Bankruptcy Court for the Southern District
of Florida to tap his own firm, Bast Amron LLP, in connection with
JDi Data's Chapter 11 case.
Bast Amron will be paid based upon its normal and usual hourly
billing rates and will be reimbursed for out-of-pocket expenses
incurred.
Mr. Brown 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:
Scott N. Brown, Esq.
Bast Amron, LLP
One Southeast Third Avenue, Suite 2410
Miami, FL 33131
Tel: (305) 379-7904
Fax: (305) 379-7905
Email: sbrown@bastamron.com
About JDi Data Corporation
JDi Data Corporation has developed innovative solutions for
professionals within the insurance, risk, and legal communities.
Its software solutions are designed to allow organizations to
invest in tools that truly transform their day-to-day processes.
The company is based in Fort Lauderdale, Fla.
JDi Data sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. S.D. Fla. Case No. 23-11322) on Feb. 17, 2022, with $1
million to $10 million in both assets and liabilities. John Heller,
chief restructuring officer, signed the petition.
Judge Scott M. Grossman oversees the case.
Moffa & Bierman represents the Debtor as legal counsel.
Scott N. Brown is the Chapter 11 trustee appointed in the Debtor's
bankruptcy case. Bast Amron, LLP is the trustee's legal counsel.
KEYSTONE GAS: United States Trustee Says Disclosure Inadequate
--------------------------------------------------------------
The United States Trustee objects to the Disclosure Statement in
support of Plan of Reorganization of Keystone Gas Corporation.
The United States Trustee claims that the Disclosure Statement does
not adequately disclose Debtor's finances. Debtor's Plan includes
lump-sum payments to be made shortly after the Effective Date,
lump-sum payments to be made one year after the Effective Date,
quarterly payments, as well as longer-term installment payments.
Thus, the Plan depends upon both the immediate, and the future of
the business.
The United States Trustee points out that the Disclosure Statement
does not contain adequate information regarding litigation. While
Articles 3.9(c) and 6.1(i) claim assets categorized as preference
claims, fraudulent transfer claims, and insider claims, the
Disclosure Statement does not state (i) that Debtor performed any
due diligence to identify whether such claims exist, (ii) what
claims it will in fact pursue, or (iii) whether proceeds will be
paid to creditors.
The United States Trustee asserts that Article 5.2 contains a table
listing each class of claims under the Plan that summarizes the
treatment of each claim. However, the Disclosure Statement is
unclear as to whether Debtor will have the cash on hand or
otherwise available to satisfy these early payment obligations.
The United States Trustee further asserts that a clear and
prominent aggregate estimate of the amounts necessary for the
initial payments under the plan should be set forth in the
Disclosure Statement. This number should be compared to the cash on
hand. If the amount needed to (i) confirm or (ii) perform in the
first year of the Plan is greater than the cash available, there
should be an explanation concerning the source and availability of
additional funds.
Additionally, there do not appear to be any plan payments shown in
Debtor's Pro Forma Financial Projections. Estimated Plan payments
should be disclosed in the projections along with Debtor's other
ongoing obligations.
The United States Trustee notes that the Disclosure Statement fails
to address suspense accounts and the Debtor's handling of other
people's property during bankruptcy. The Disclosure Statement
should be rejected unless and until it includes a suspense
accounting showing whether Debtor has unfunded obligations to third
parties or is otherwise holding funds belonging to third parties.
A full-text copy of the United States Trustee's objection dated
April 27, 2023 is available at https://bit.ly/41WATBW from
PacerMonitor.com at no charge.
About Keystone Gas Corporation
Keystone Gas Corporation, a utility service provider in Drumright,
Okla., sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. W.D. Okla. Case No. 22-12088) on Sept. 14, 2022. At
the time of the filing, the Debtor reported $1 million to $10
million in both assets and liabilities.
Judge Sarah A. Hall oversees the case.
The Debtor tapped Spencer Fane, LLP as legal counsel and HBC CPAs &
Advisors as accountant.
KINGPRIEST HOLDINGS: Taps Alecia Compton Law Office as Counsel
--------------------------------------------------------------
Kingpriest Holdings, LLC seeks approval from the U.S. Bankruptcy
Court for the District of South Carolina to employ Alecia Compton
Law Office, LLC as its bankruptcy counsel.
The firm will render these services:
(a) advise the Debtor with respect to its powers and duties in
the continued management of its assets and responsibilities to
creditors;
(b) advise the Debtor regarding its responsibility to provide
insurance and bank account information, file monthly operating
reports, pay quarterly fees to the U.S. Trustee's Office, seek and
receive through its attorney consent of this court to incur debt or
sell property, file a plan of reorganization, and file a final
report, accounting and request for final decree; and
(c) prepare legal papers.
Alecia Compton, Esq., the primary attorney in this engagement, will
be paid at her hourly rate of $350.
The firm received an up-front attorney fee of $7,500 from the
Debtor.
Ms. Compton disclosed in a court filing that her firm is a
"disinterested person" as defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Alecia T. Compton, Esq.
Alecia Compton Law Office, LLC
340-A Main Street
Greenwood, SC 29646
Telephone: (864) 450-9042
Email: alecia@aleciacomptonlawoffice.com
About Kingpriest Holdings
Kingpriest Holdings LLC, a limited liability company in South
Carolina, filed a petition for relief under Subchapter V of Chapter
11 of the Bankruptcy Code (Bankr. D.S.C. Case No. 23-00968) on
April 3, 2023, with $1 million to $10 million in both assets and
liabilities. J. Kershaw Spong has been appointed as Subchapter V
trustee.
Judge Helen E. Burris oversees the case.
Alecia Compton Law Office, LLC serves as the Debtor's legal
counsel.
KOTAI INVESTMENTS: Starts Subchapter V Bankruptcy Proceeding
------------------------------------------------------------
Kotai Investments Inc. filed for chapter 11 protection without
stating a reason. The Debtor elected on its voluntary petition to
proceed under Subchapter V of chapter 11 of the Bankruptcy Code.
According to court filings, Kotai Investments estimates between $1
million and $10 million in debt to 1 to 49 creditors. The
petition states that funds will be available to unsecured
creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
May 16, 2023 at 10:00 a.m. at UST-LA3.
About Kotai Investments
Kotai Investments Inc. filed a petition for relief under Subchapter
V of Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Case No.
23-12242) on April 13, 2023. In the petition filed by Curt Wang, as
president, the Debtor reported assets and liabilities between $1
million and $10 million each.
The Honorable Bankruptcy Judge Deborah J Saltzman handles the
case.
Mark M Sharf was appointed as Subchapter V trustee.
The Debtor is represented by:
Michael Jay Berger, Esq.
LAW OFFICES OF MICHAEL JAY BERGER
9454 Wilshire Boulevard, 6th Floor
Beverly Hills, CA 90212
Tel: (310) 271-6223
Fax: (310) 271-9805
Email: michael.berger@bankruptcypower.com
LANNETT CO: Case Summary & 30 Largest Unsecured Creditors
---------------------------------------------------------
Lead Debtor: Lannett Company, Inc.
1150 Northbrook Drive
Suite 155
Trevose PA 19053
Business Description: Lannett Company, Inc., together with its
subsidiaries, is a mid-size developer,
manufacturer, marketer, and distributer of
generic versions of brand pharmaceutical
products that address a wide range of
therapeutic areas.
Chapter 11 Petition Date: May 2, 2023
Court: United States Bankruptcy Court
District of Delaware
Four affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Lannett Company, Inc. (Lead Case) 23-10559
Cody Laboratories, Inc. 23-10560
Kremers Urban Pharmaceuticals Inc. 23-10561
Silarx Pharmaceuticals, Inc. 23-10562
Debtors'
Attorneys: Nicole L. Greenblatt, P.C.
Kirkland & Ellis LLP
KIRKLAND & ELLIS INTERNATIONAL LLP
601 Lexington Avenue
New York, New York 10022
Tel: (212) 446-4800
Fax: (212) 446-4900
Email: nicole.greenblatt@kirkland.com
- and -
Joshua M. Altman, Esq.
KIRKLAND & ELLIS LLP
KIRKLAND & ELLIS INTERNATIONAL LLP
300 North LaSalle Street
Chicago, Illinois 60654
Tel: (312) 862-2000
Fax: (312) 862-2200
Email: josh.altman@kirkland.com
Debtors'
Local
Counsel: Howard A. Cohen, Esq.
FOX ROTHSCHILD LLP
919 North Market Street
Suite 300
Wilmington, Delaware 19899
Tel: (302) 654-7444
Fax: (302) 656-8920
Email: hcohen@@foxrothschild.com
- and -
Stephanie J. Slater, Esq.
FOX ROTHSCHILD LLP
919 North Market Street
Suite 300
Wilmington, Delaware 19899
Tel: (302) 654-7444
Fax: (302) 656-8920
Email: sslater@foxrothschild.com
Debtors'
Financial
Advisor: FTI CONSULTING, INC.
Debtors'
Investment
Banker: GUGGENHEIM SECURITIES, INC.
Debtors'
Claims &
Noticing
Agent: OMNI AGENT SOLUTIONS
Total Assets as of March 31, 2023: $334,600,000
Total Debts as of March 31, 2023: $708,940,000
The petition was signed by Timothy C. Crew 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/7V4RBTY/Lannett_Company_Inc__debke-23-10559__0001.0.pdf?mcid=tGE4TAMA
List of Debtors' 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Wilmington Trust, NA Convertible Notes $86,250,000
50 S 6th St, Ste 1290
Minneapolis, MN 55402
Tel: 612-217-5693
Email: TMorris@wilmingtontrust.com;
NHakel@wilmingtontrust.com
2. IBSA Institut Biochimique SA Trade $1,750,720
Via Del Piano 29
Pambio Noranco, 6915
Switzerland
Tel: 41 58 360 1000
Email: CRISTINA.ZANGIROLAMI@IBSA.CH
3. Johnson Matthey Trade $1,631,449
Pharmaceutical Mate
2003 Nolte Dr
W Deptford, NJ 08066
Tel: 856-537-6343
Fax: 856-384-7276
Email: API-WDP-PHARM_AP@VERANOVA.COM
4. Adare Pharmaceuticals Inc Trade $1,024,947
845 Center Dr
Vandalia, OH 45377
Tel: 937-898-9669
Fax: 937-264-2654
Email: KARLA.BETHEL@ADAREPHARMA.COM
5. Archimica SPA Trade $684,350
Viale Milano 86
Lodi, 26900
Italy
Tel: 39 0371 49021
Fax: 39 0371 71793
Email: Elena.DiBiase@archimica.com
6. Trirx Pharmaceutical Services LLC Trade $602,253
120 Vintage Dr
Huntsville, AL 35811
Tel: 256-529-4013
Email: TriRxHuntsvilleAR@trirx.com
7. Neolpharma Inc Trade $551,527
Jardines St, Apt 99
Caguas, PR 00725
Tel: 787-286-4090
Fax: 787-286-4301
Email: marco.monrouzeau@neolpharma.com
8. Chartwell Pharmaceuticals LLC Trade $429,325
77 Brenner Dr
Congers, NY 10920
Tel: 845-268-5000 ext 513
Email: JG@CHARTWELLPHARMA.COM
9. Elite Laboratories Inc Trade $346,259
165 Ludlow Ave
Northvale, NJ 07647
Tel: 201-367-7855
Fax: 201-750-2755
Email: JWEISS@ELITEPHARMA.COM
10. Novitium Pharma LLC Trade $265,650
70 Lake Dr
E Windsor, NJ 08520
Tel: 609-632-2768
Email: isac.iype@anipharmaceuticals.com
11. Berlin Packaging LLC Trade $259,799
P.O. Box 74007164
Chicago, IL 60674-7164
Tel: 312-869-7574
Fax: 312-610-5859
Email: PAYMENT@BERLINPACKAGING.COM
12. Continental Resources, Inc Trade $231,918
P.O. Box 4196
Boston, MA 02211
Tel: 856-303-3945
Email: REMIT@CONRES.COM
13. Pharmaceutics International Inc Trade $221,424
10819 Gilroy Rd
Hunt Valley, MD 21031
Tel: 410-584-0001
Fax: 410-527-0526
Email: ACCOUNTSRECEIVABLE@PHARM-INT.COM
14. HEC Pharm USA Inc Trade $187,660
1150 Northbrook Dr, Ste 155
Trevose, PA 19053
Tel: 408-580-6016
Email: KONGWEIHENG@HEC.CN
15. Winpak Control Group Inc Trade $176,050
500 Walnut St
Norwood, NJ 07648
Tel: 201-784-8721
Fax: 201-784-1527
Email: Christopher.Raimo@winpak.com
16. Halo Pharmaceutical Canada Inc Trade $166,791
17800 Rue Lapointe
Mirabel, QC J7J 1P3
Canada
Tel: 450-433-7673
Fax: 450-979-6350
Email: Diane.Renaud@cambrex.com
17. Duke Energy Utilities $159,778
P.O. B0x 9001076
Louisville, KY 40290-1076
Email: clay.fritz@duke-energy.com
18. Capsugel Holdings US Inc Trade $148,760
535 N Emerald Rd
Greenwood, SC 29646
Tel: 201-249-8666
Email: ssc.paymentinfo.na@lonza.com
19. Webster West Inc Trade $148,676
P.O. Box 641071
Cincinnati, OH 45264-1071
Tel: 812-346-5666
Email: payables@websterwest.com
20. Colorcon Inc Trade $145,566
P.O. Box 8500, S-2685
Philadelphia, PA 19178
Email: CCAmericasAR@colorcon.com
21. Agro-Bio SAS Trade $144,907
2 Allee De La Chavannerie
La Ferte St Aubin, 45240
France
Tel: 33(0)6 23 65
Fax: 33(0)2 38 64 83 59
Email: MINHPHUONG.MICHEL@AGROBIO.COM
22. Healthcare Packaging US Inc Trade $102,041
101 Christine Dr
Belen, NM 87002
Tel: 855-628-1601
Email: AR_US@AIRNOV-HEALTHCARE.COM
23. Health Holdings LLC Landlord $81,266
2060 1st Ave
Seymour, IN 47274
Tel: 812-522-2224 ext 229
Fax: 812-522-6264
Email: DVONDIELINGEN@KOCOLENE.COM
24. 1150 Northbrook LLC Landlord $81,135
1530 Wilson Blvd, Ste 200
Arlington, PA 22209
Tel: 732-925-2824
Fax: 703-525-5862
Email: AKLINE@LPC.COM
25. Qualicaps Inc Trade $79,874
P.O. Box 75191
Charlotte, NC 28275-5191
Tel: 336-260-6324
Email: myeoman@qualicaps.com
26. Univar Solutions USA Inc Trade $78,462
7425 E 30th St
Indianapolis, IN 46219
Tel: 317-547-4811
Fax: 317-546-8054
Email: cashapps@univarsolutions.com
27. Azelis US Holding Inc Trade $76,826
154 Pioneer Dr
Leominster, MA 01453
Tel: 978-840-2959
Email: arremit.marcor@azelisamericas.com
28. MG America Inc Trade $73,329
31 Kulick Rd
Fairfield, NJ 07004
Tel: 973-808-8185
Fax: 973-808-8421
Email: NADAMO@MGAMERICA.COM
29. Unither US Corp Trade $72,290
755 Jefferson Rd
Rochester, NY 14623
Tel: 585-274-5423
Email: PATRICK.BROWN@UNITHERPHARMA.COM
30. Cognizant Technology Solutions Trade $64,313
24721 Network Pl
Chicago, IL 60673-1247
Tel: 969-691-7700
Email: TEAMRECEIVABLES@COGNIZANT.COM;
AR_US@AIRNOV-HEALTHCARE.COM
LANNETT COMPANY: Moody's Cuts CFR & First Lien Secured Notes to C
-----------------------------------------------------------------
Moody's Investors Service downgraded Lannett Company, Inc.'s
corporate family rating to C from Ca, probability of default rating
to D-PD from Ca-PD, and the first lien senior secured notes rating
to C from Caa3. The Speculative Grade Liquidity Rating of SGL-4,
and stable outlook remain unchanged.
The downgrade of the probability of default rating to D-PD follows
Lannett's announcement on May 1, 2023, that it has entered into a
Restructuring Support Agreement (RSA) with holders of more than 80%
of its 7.750% senior secured notes due 2026 and 100% of the lenders
party to the company's second lien credit and guaranty agreement.
The financial restructuring transaction contemplated by the RSA
will reduce the company's outstanding secured indebtedness by
approximately $511 million. Following completion of the
transaction, the secured lenders will own the equity of the company
and the company's existing stock will be cancelled. To implement
the financial restructuring contemplated by the RSA, the company
expects to file voluntary petitions for reorganization pursuant to
Chapter 11 of the United States Bankruptcy Code, after receiving
sufficient votes to support its prepackaged plan of
reorganization.
The downgrade of the CFR to C from Ca and first lien senior secured
notes' rating to C from Caa3, reflects Moody's expectation that
with Lannett's ongoing challenges in stabilizing performance, and
without the near-term success of the company's pipeline
opportunities, recovery will be low.
Governance risk is a consideration in the rating action. The
company operates with aggressive financial policies reflected in
very high debt levels, resulting in capital structure that is
untenable. The company entered into a restructuring support
agreement ("RSA") with Lannett's secured notes and second lien debt
holders to reduce outstanding indebtedness.
The stable outlook reflects Moody's view that the current ratings
adequately reflect Lannett's recovery prospects.
Downgrades:
Issuer: Lannett Company, Inc.
Corporate Family Rating, Downgraded to C from Ca
Probability of Default Rating, Downgraded to D-PD from Ca-PD
Senior Secured Regular Bond/Debenture, Downgraded to C from Caa3
Outlook Actions:
Issuer: Lannett Company, Inc.
Outlook, Remains Stable
RATINGS RATIONALE
Lannett's ratings are constrained by negative earnings and
untenable capital structure, along with weak liquidity reflected in
sustained negative free cash flows. The ratings are also
constrained by Lannett's modest size with revenues declining to
under $350 million and concentration in the US generic drug market.
Lannett's announced Restructuring Support Agreement, along with the
company expectation to file voluntary petitions for reorganization
pursuant to Chapter 11 resulted in the downgrade of its Probability
of Default Rating to D-PD. Following restructuring of its balance
sheet, the company will need to reverse earnings decline through
cumulative contributions from higher value new product launches
from Lannett's internal and acquired pipeline.
Subsequent to the rating action, Moody's will withdraw all the
ratings of Lannett Company, Inc.'s ("Lannett").
Lannett Company, Inc. ("Lannett"), headquartered in Philadelphia,
Pennsylvania is a generic drug manufacturer and distributor with
capabilities in difficult-to-manufacture products. Lannett reported
revenues of $309 million for the twelve months ended December 31,
2022.
The principal methodology used in these ratings was Pharmaceuticals
published in November 2021.
LOYALTY VENTURES: Joint Plan Confirmed by Judge
-----------------------------------------------
Judge Christopher Lopez has entered an order confirming the Joint
Chapter 11 Plan of Loyalty Ventures Inc., et al.
The terms of the Plan, the Plan Supplement and any exhibits thereto
are incorporated herein by reference, and are nonseverable from,
mutually dependent on and an integral part of this Confirmation
Order.
The compromises and settlements set forth in the Plan (including
the Plan Supplement) are approved, and will be effective
immediately and binding on all parties in interest on the Effective
Date (unless (a) different date(s) is/are specified in the
applicable foregoing documents, in which case the applicable terms
shall be effective and binding on such date(s)).
For purposes of the Plan:
* The Allowed Revolving Loan Claims include: (i)
$32,000,000.00 of outstanding principal of the Revolving Loans,
(ii) $448,312.80 of accrued interest on the Revolving Loans, (iii)
$103,631.18 of accrued commitment fees, (iv) $5,235.00 of accrued
letter of credit fees, and (v) $8,506.65 of accrued fronting fees.
* The Allowed Term A Loan Claims include: (i) $161,875,000.00
of outstanding principal of the Term A Loans, and (ii)
$1,767,320.23 of accrued interest on the Term A Loans.
* The Allowed Term B Loan Claims include: (i) $ 462,500,000.00
of outstanding principal of the Term B Loans, (ii) $5,410,616.41 of
accrued interest on the Term B Loans, and (iii) a prepayment
premium in the amount of $9,250,000.00 (the "Prepayment Premium").
The amounts listed reflect amounts owing under the Credit Agreement
as of the Petition Date. Distributions on account of the Allowed
Loan Claims under the Plan shall be in accordance with the Plan and
the Liquidating Trust Agreement. Notwithstanding anything to the
contrary in the Plan, the inclusion of the Prepayment Premium as
part of the Allowed Term B Claims is not a determination as to the
entitlement to the payment of such amount under applicable law or
the Credit Agreement and all parties' rights on those issues are
reserved.
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. Tex. Lead Case No.
23-90111) on March 10, 2023.
As of Sept. 30, 2022, the Company had $1,591,218,000 in total
assets against $1,980,850,000 in total liabilities. In the
petition signed by John J. Chesnut, chief financial officer, LVI
disclosed up to $10 million in assets and up to $1 billion in
liabilities.
Judge Christopher Lopez oversees the case.
The Debtors have hired Akin Gump Strauss Hauer & Feld LLP and
Jackson Walker LLP as U.S. co-counsel; Cassels Brock & Blackwell
LLP, as Canadian legal counsel to LoyaltyOne; PJT Partners LP as
the Debtors' investment banker; Alvarez & Marsal North America,
LLC, as the Debtors' restructuring advisor; and Alvarez & Marsal
Canada ULC, as Canadian financial and restructuring advisor to
LoyaltyOne. Kroll Restructuring Administration LLC serves as
claims, noticing and solicitation agent.
Bank of America, N.A., serves as administrative agent and
collateral agent under a 2021 Credit Agreement that consisted of a
$175 million term A loan facility; a $500 million term B loan
facility; and a $150 million revolving credit facility. Haynes and
Boone LLP serves as counsel for the Administrative Agent, and FTI
Consulting, Inc., serves as its financial advisor.
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: Talc Claimants Want Bankruptcy Tossed for 2nd Time
------------------------------------------------------------------
Several parties, including the official committee of talc
claimants, and the U.S. Trustee Office, are asking the bankruptcy
court to dismiss the second bankruptcy case of Johnson & Johnson
subsidiary, saying the company is not financially distressed.
After its original bankruptcy case was dismissed, J&J's LTL
Management LLC filed for Chapter 11 for the second time to settle
tens of thousands of claims that Johnson & Johnson's baby powders
caused cancer.
The Official Committee of Talc Claimants said in court filings,
"This abusive second bankruptcy cannot be allowed to continue.
Even with the purported reduction of available funding in the 2023
Funding Agreement, LTL cannot carry its burden to show that it is
in financial distress, which the Third Circuit and this Court on
April 20 recognized is a "gateway" issue. Nor can the change from
the 2021 to the 2023 Funding Agreement be any basis for finding
financial distress and good faith. Not only will such an obvious
fraudulent transfer eventually be reversed, but it would be
perverse for fraud and breach of fiduciary duty to provide a basis
for good faith. Perhaps most significantly, LTL's latest petition
is an abuse of the bankruptcy system and an affront to our justice
system, created to further a massive corporation seeking a
litigation advantage over victims harmed by its own products. Talc
claimants have already been forced to endure an 18-month delay that
the Third Circuit has now authoritatively established was
impermissible. The claimants have waited long enough. Hundreds
died during the Debtor's first bankruptcy without receiving fair
compensation or their day in court. And, because of LTL's renewed
abuse, that tragedy will continue. LTL’s fraudulent conduct
cannot be rewarded with another 18 months in bankruptcy while talc
victims continue to suffer and die."
"What's changed since the Third Circuit held that LTL was a bad
faith debtor? A monumental fraudulent transfer, several breached
fiduciary duties, and some lawyers claim they have clients -- who
may or may not have cancer, let alone one linked to talc use -- who
would accept money from a trust. Maybe," said the mesothelioma
plaintiffs represented by MAUNE RAICHLE HARTLEY FRENCH & MUDD, LLC,
which also seek dismissal of the new Chapter 11 case.
"None of this gives this Court subject matter jurisdiction. Votes
don't matter if LTL filed in bad faith. And it obviously did.
Section 524(g) isn't a menu choice for half-a-trillion-dollar
tortfeasors and their fabricated debtors that would rather pay less
to the people they poisoned to death."
The Ad Hoc Committee of States Holding Consumer Protection Claims
is also seeking dismissal, saying, "The many tools provided by the
Bankruptcy Code are available only in limited circumstances where
the debtor's financial distress justifies substantively impairing
the rights of its creditors. The law does not allow a company that
is not in financial distress to prejudice its creditors and ignore
the requirement of financial distress in the name of convenience
and efficiency."
Andrew R. Vara, the United States Trustee for Regions 3 and 9,
notes that the new Chapter 11 case was filed just 131 minutes after
the Court dismissed LTL's previous chapter 11 case for cause,
following a ruling by the United States Court of Appeals for the
Third Circuit that found that LTL lacked a valid reorganization
purpose and that it had sought bankruptcy protection in bad faith.
"LTL is nothing more than J&J's captive and this case is but a part
of J&J’s scheme to discharge its tort obligations at cents on the
dollar—without itself filing for bankruptcy. LTL itself is
largely bereft of employees, independent revenue, any real
business, and any prospects for a viable, operating business on the
backside of bankruptcy. It exists solely to get J&J out of a jam as
cheaply as possible. Assuming J&J were ever to face financial
distress, it would be free to resolve its debts by seeking chapter
11 relief. But J&J cannot escape its financial obligations by
piggybacking on LTL's bankruptcy. LTL's singular priority to shield
J&J's $187 billion in assets in this bankruptcy-by-proxy -- when
LTL owes its fiduciary duties to its creditors, not J&J -- lays
bare the reality that LTL is by design incapable of acting as a
fiduciary for its creditors. The bankruptcy system deserves
better, as do LTL’s and J&J’s creditors. LTL's second
bankruptcy case should thus fare no better than its first. The
doors of this Court are open to honest but unfortunate debtors,
Grogan v. Garner, 498 U.S. 279, 287 (1991), but they are not open
to parties that lack a legitimate bankruptcy purpose or that seek
to abuse the bankruptcy process to hinder or delay their creditors.
This case should be dismissed," the U.S. Trustee said.
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.
M7VEN SUPPORTIVE: Taps Theodore N. Stapleton P.C. as Legal Counsel
------------------------------------------------------------------
M7ven Supportive Housing & Development Group, Inc. received
approval from the U.S. Bankruptcy Court for the Northern District
of Georgia to employ Theodore N. Stapleton P.C. as its legal
counsel.
The Debtor requires legal counsel to:
(a) give advice regarding matters of bankruptcy law, including,
but not limited to, the rights, obligations and remedies of the
Debtor with respect to its assets and claims of its creditors;
(b) prepare legal papers;
(c) investigate, analyze and evaluate potential claims of the
estate, including claims for recovery of avoidable transfers under
the Bankruptcy Code;
(d) advise the Debtor concerning Chapter 11 plans and
alternatives thereto;
(e) represent the Debtor at hearings and conferences in
connection with the administration of its Chapter 11 case; and
(f) provide other necessary legal services.
The hourly rates charged by the firm are as follows:
Attorneys $200 - $500
Paralegals $50 - $175
Project Assistants $50 - $175
Theodore Stapleton, Esq., the firm's lead attorney, will be paid an
hourly fee of $500.
The retainer fee is $7,000.
Mr. Stapleton disclosed in a court filing that his firm is a
"disinterested person" within the meaning of Section 101(14) of the
Bankruptcy Code.
The firm can be reached at:
Theodore N. Stapleton, Esq.
Theodore N. Stapleton, P.C.
2802 Paces Ferry Road SE, Suite 100-B
Atlanta, GA 30339
Tel: (770) 436-3334
Email: tstaple@tstaple.com
About M7ven Supportive Housing &
Development Group
M7ven Supportive Housing & Development Group, Inc., a company in
Kennesaw, Ga., filed its voluntary petition for Chapter 11
protection (Bankr. N.D. Ga. Case No. 23-53192) on April 4, 2023,
with as much as $50,000 in assets and $1 million to $10 million in
liabilities. Beverly Creagh, M7ven's executive director, signed the
petition.
Theodore N. Stapleton, P.C. serves as the Debtor's legal counsel.
MEDICAL CENTER: Seeks to Tap C. Taylor Crockett as Legal Counsel
----------------------------------------------------------------
Medical Center Pharmacy, LLC seeks approval from the U.S.
Bankruptcy Court for the Northern District of Alabama to employ C.
Taylor Crockett, Esq., an attorney practicing in Birmingham, Ala.,
to handle its Chapter 11 case.
Mr. Crockett will render these services:
(a) advise the Debtor of its powers, and duties in the
continued management of its financial affairs and property;
(b) prepare legal papers;
(c) review all leases and other corporate papers and prepare
necessary motions to assume unexpired leases or executory contracts
and assist in preparation of corporate authorizations and
resolutions regarding the Chapter 11 case; and
(d) perform all other legal services for the Debtor.
Mr. Crockett will be paid at his hourly rate of $425. He also
received a retainer of $12,500, plus the filing fee of $1,738.
The attorney disclosed in a court filing that he is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The attorney can be reached at:
C. Taylor Crockett, Esq.
C. Taylor Crockett, PC
2067 Columbiana Road
Birmingham, AL 35216
Telephone: (205) 978-3550
Email: taylor@taylorcrockett.com
About Medical Center Pharmacy
Medical Center Pharmacy, LLC sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. N.D. Ala. Case No. 23-80762) on
April 24, 2023, with $100,001 to $500,000 in assets and $500,001 to
$1 million in liabilities. Michael Keith Sigmon, managing member,
signed the petition.
Judge Clifton R. Jessup Jr. oversees the case.
C. Taylor Crockett, Esq., represents the Debtor as legal counsel.
MOUNTAIN EXPRESS: Court OKs $37.8MM DIP Loan from First Horizon
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas,
Houston Division, authorized Mountain Express Oil Co. to use cash
collateral and obtain post-petition financing, on a final basis.
The Debtors obtained postpetition financing, consisting of senior
secured super-priority, multi-draw term loans to be advanced and
made available to the Debtors in the aggregate maximum principal
amount of $37.850 million from certain lenders led by First Horizon
Bank, as Administrative Agent and Lender.
On March 23, 2023, the Court entered the Interim DIP Order
authorizing an initial draw of the DIP Loans on an interim basis in
a maximum principal amount not to exceed $20 million.
The Debtors are required to comply with these milestones:
a. By April 25, 2023, the Debtors will obtain entry of a Court
order, in form and substance acceptable to the DIP Agent, approving
the DIP Facility on a final basis;
b. Not later than 86 days after the Petition Date, the Debtors
will file a motion to establish bidding procedures for the sale of
substantially all of the Debtors' assets;
c. Not later than 110 days after the Petition Date, the
Debtors will obtain entry of an order of the Court, in form and
substance acceptable to the DIP Agent approving the Bid Procedures
Motion;
d. Not later than 130 days after the Petition Date, the
commencement of an auction for a sale or sales of substantially all
of the Debtors' assets;
e. Not later than 135 days after the Petition Date, the entry
of an order or orders approving the sale(s) resulting from the
auction(s); and
f. Not later than 150 days after the Petition Date, the
closing of the sale(s) approved by the Court.
The DIP Facility will terminate, and the DIP Loans and all other
DIP Obligations will mature and be due and owing, upon the DIP
Agent's and the DIP Lenders' election, at the earliest to occur of:
a. the date on which the DIP Agent provides written notice to
the Debtors, the U.S. Trustee, and counsel for the Committee of the
occurrence of an Event of Default under the DIP Facility;
b. the date of the acceleration of any outstanding extension
of credit under the DIP Facility;
c. the closing of any Sale of the Debtors' assets;
d. the effective date of a confirmed plan in any of the
Chapter 11 Cases;
e. the entry of an order converting any of the Chapter 11
Cases to a case or cases under chapter 7 of the Bankruptcy Code;
f. the entry of an order dismissing any of the Chapter 11
Cases;
g. the entry of an order appointing a chapter 11 trustee or an
examiner with expanded powers in any of the Chapter 11 Cases;
h. the failure to comply with any of the Case Milestones;
i. the date of the commencement of the Final Hearing, if this
Final DIP Order is modified at the Final Hearing in a manner
unacceptable to the DIP Agent or the DIP Lenders, in their sole
discretion; and
j. 180 days after the Petition Date.
The Debtors have an immediate and critical need to use the cash
collateral, in order to permit, among other things, maintenance of
the Debtors' assets.
Debtor Mountain Express Oil Company is the borrower under a First
Amended and Restated Credit Agreement dated as of March 12, 2020
among MEX, the Prepetition Guarantors, certain Lenders, and First
Horizon Bank with respect to a secured term loan and revolving
credit facility. The Prepetition Credit Agreement provided for
loans to the Prepetition Borrower of up to $205 million in
aggregate principal amount. As of the Petition Date, the aggregate
amount outstanding under the Loan Facility is approximately $176.5
million consisting of:
-- $148.3 million in outstanding principal due under the
Prepetition Term Loan Facility; and
-- $28.2 million in outstanding principal due under the
Prepetition Revolving A Facility.
No amounts were due and owing under the Prepetition Revolving B
Facility.
Each of the foregoing amounts is exclusive of accrued interest,
fees, costs and charges.
MEX and certain of the Prepetition Secured Parties were parties to
a hedge agreement to hedge interest rate exposure applicable to a
portion of the principal amount borrowed under the term loan
facility of the Prepetition Loan Agreement. The hedge agreement was
terminated as of March 8, 2023, yielding a hedge termination
payment for MEX's benefit in the approximate amount of $6.648
million.
As of the Petition Date, the Debtors are liable for payment of the
Prepetition Obligations, and the Prepetition Obligations will be an
allowed secured claim in an amount not less than $171.641 million,
exclusive of accrued and accruing interest, costs, expenses, fees,
and other amounts owed to the Prepetition Agent and Prepetition
Lenders.
As adequate protection, the Prepetition Secured Parties are granted
allowed superpriority administrative expense claims, to the extent
provided by 11 U.S.C. sections 503(b) and 507(b), in the Chapter 11
Cases and any successor case.
The Prepetition Secured Parties are also granted a continuing
security interest in and lien on all collateral of the Debtors of
the same type and nature that exists as of the Petition Date and an
additional and replacement security interest in and lien on all
property and assets of the Debtors' estates to the extent that such
property and assets can be pledged by the Debtors.
A copy of the Court's order is available at https://bit.ly/41TxdRE
from PacerMonitor.com.
About Mountain Express Oil Company
Mountain Express Oil Company and its affiliates operate in the fuel
distribution and retail convenience industry. As one of the
largest fuel distributors in the American South, MEX and its
affiliates serve 828 fueling centers and 27 travel centers across
27 states.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 23-90147) on March
18, 2023. In the petition signed by Michael Healy, as chief
restructuring officer, the Debtor disclosed up to $500 million in
assets and liabilities.
Judge David R. Jones oversees the case.
Pachulski Stang Ziehl & Jones LLP represents the Debtor as legal
counsel. The Debtors also tapped FTI Consulting, Inc. as financial
advisor, Raymond James Financial, Inc. as investment banker, and
Kurtzman Carson Consultants LLC as claims, noticing, and
solicitation agent and administrative advisor.
NEW HAVEN TRUCK: Seeks Cash Collateral Access
---------------------------------------------
New Haven Truck and Auto Body, Inc. asks the U.S. Bankruptcy Court
for the District of Connecticut, New Haven Division, for authority
to use cash collateral in accordance with the budget, with a 20%
variance, through May 31, 2023.
On November 26, 2012, the Debtor executed a Revolving Demand Note,
in the original principal amount of $175,000, payable to Citizens
Bank, National Association.
On September 30, 2013, the Debtor executed a Term Note, in the
original principal amount of $750,000, payable to Citizens.
Note 2 is secured by an Open-End Mortgage - Commercial Mortgage,
Security Agreement and Assignment of Leases and Rents from the
Debtor to Citizens dated September 30, 2013, and recorded October
1, 2013 in Volume 2343 at Page 187 of the East Haven Land Records,
The Mortgage was in the original amount of $750,000.
On July 11, 2017, the Debtor executed an Amended, Restated and
Consolidated Term Note, which consolidated Note 1 and Note 2 with
Citizens in the principal amount of $842,853. The Note has a
maturity date of December 28, 2032.
On July 11, 2017, the Mortgage was modified by a Modification and
Consolidation Agreement that was recorded on July 19, 2017 in
Volume 2551 at Page 248 of the East Haven Land Records.
On June 22, 2021, Citizens allegedly assigned the Restated Note and
Mortgage along with all related documents to NPA Associates, LLC by
Assignment of Mortgage, Collateral and Security Instruments
recorded on July 12, 2021 and recorded in Volume 2774 at Page 362
of the East Haven Connecticut Land Records.
As additional security for Note 2, an Unlimited Personal Guaranty
was executed with William S. Snow, Jr.
As additional security for the Restated Note, William S. Snow, Jr.
executed as an Existing Guarantor and Staven Auto Group, LLC was
added as an Additional Guarantor.
Note 1 may have also been secured by the filing of a UCC-1
Financing Statement on December 1, 2012, Lien Number 2908885, and
an Amendment dated July 14, 2017, which Lien lapsed according to
the Secretary of State Records on December 1, 2022. Therefore, it
is unclear whether NPA has a validly perfected security interest in
the cash collateral that is the subject of the Motion.
There does not appear to be a validly perfected UCC-1 Financing
Statement to secure Note 2.
Citizens Bank did record a UCC-1 Financing Statement originally
filed on November 22, 1999 as Amended and Continued thereafter and
a second UCC-1 Financing Statement filed on November 1, 2004 as
Amended and Continued thereafter. According to the Connecticut
Secretary of State Records, the 1999 UCC and the 2004 UCC are
scheduled to lapse in 2024 and on the face may provide a valid
security interest to Citizens, but there is no recorded assignment
and it is unclear if the 1999 UCC and the 2004 UCC relate to the
interest NPA received from Citizens.
As of September 21, 2022, the Connecticut Superior Court found the
debt owed to NPA was $1 million, with a per diem of $106, plus fees
and costs.
As adequate protection against any post-petition diminution of the
Lender's cash collateral under 11 U.S.C. sections 361 and 363, the
Debtor will offer replacement or substitute liens in all
post-petition assets of the Debtor and proceeds thereof, and the
replacement liens will have the same validity, extent, and priority
that the Lender possessed as to said liens on the Petition Date.
As adequate protection against any post-petition diminution of the
Lender's cash collateral, the Debtor proposes to make adequate
protection payments to the Lender as required in the amount of
$2,000 per month. The Superior Court entered a Judgment of
Foreclosure by Sale on September 21, 2022, finding a value of $1.4
million and a debt of $1 million. The foreclosure Committee
submitted an appraisal with a value of $1.550 million as of June
15, 2023. Based on either value and an estimated amount due to the
mortgage company with interest, fees, and expenses, there is equity
in the property of approximately $350,000 to $500,000.
A copy of the motion is available at https://bit.ly/40VkTib from
PacerMonitor.com.
About New Haven Truck and Auto Body, Inc.
New Haven Truck and Auto Body, Inc. is a complete vehicle collision
and body repair shop located in East Haven, Connecticut.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Conn. Case No. 23-30298) on April 28,
023. In the petition signed by William S. Snow, Jr., president, the
Debtor disclosed up to $10 million in both assets and liabilities.
Stuart H. Caplan, Esq., at the Law Offices of Neil Crane, LLC,
represents the Debtor as legal counsel.
OMNIA PARTNERS: Moody's Assigns 'B2' CFR, Outlook Stable
--------------------------------------------------------
Moody's Investors Service upgraded National Intergovt Purchasing
Alliance Co's ("NIPA") corporate family rating to B2 from B3, its
probability of default rating to B2-PD from B3-PD, senior secured
first-lien bank credit facilities rating to B1 from B2 and senior
secured second-lien term loan rating to Caa1 from Caa2. The outlook
remains stable. At the same time, Moody's assigned a B2 corporate
family rating, B2-PD probability of default rating and a stable
outlook to OMNIA Partners, Inc. ("OMNIA Partners"), the parent
entity of NIPA. Subsequent to this action, Moody's will withdraw
the CFR and PDR at National Intergovt Purchasing Alliance Co. NIPA
is one of the operating companies of OMNIA Partners, but does not
file financial statements so Moody's analyzes the company using
OMNIA Partners' financial statements. Hence the reassignment of the
CFR and PDR to OMNIA Partners. The instrument ratings will continue
to remain at NIPA because it is the borrower.
"The upgrade reflects Moody's expectation of improving financial
leverage as a result of continued strong EBITDA growth and free
cash flow generation", said Mikhil Mahore, Moody's analyst.
Assignments:
Issuer: OMNIA Partners, Inc.
Corporate Family Rating, Assigned B2
Probability of Default Rating, Assigned B2-PD
Upgrades:
Issuer: National Intergovt Purchasing Alliance Co
Corporate Family Rating, Upgraded to B2 from B3
Probability of Default Rating, Upgraded to B2-PD from B3-PD
Backed Senior Secured 1st Lien Term Loan, Upgraded to B1 from B2
Backed Senior Secured 1st Lien Revolving Credit Facility, Upgraded
to B1 from B2
Backed Senior Secured 2nd Lien Term Loan, Upgraded to Caa1 from
Caa2
Outlook Actions:
Issuer: OMNIA Partners, Inc.
Outlook, Assigned Stable
Issuer: National Intergovt Purchasing Alliance Co
Outlook, Remains Stable
RATINGS RATIONALE
OMNIA's rating (B2 stable) benefits from: (1) the ongoing
transition of public and private sector groups to GPOs for savings;
(2) healthy EBITDA margins, complemented by an asset-light business
model supporting free cash flow generation; (3) long-term contracts
and high retention rate of over 95% and (4) very good liquidity.
The company's rating is constrained by: (1) moderate leverage
(below 4x in 2023) but weaker interest coverage (around 2.5x in
2023) driven by the increase in rates; (2) exposure to volume
fluctuations combined with small scale (revenue around $250
million); and (3) a narrow focus on providing procurement
efficiencies primarily to the public sector as a group purchasing
organization (GPO).
OMNIA has very good liquidity. Sources total about $220 million,
consisting of cash on hand of around $30 million as of December
2022, Moody's expectation of about $100 million in free cash flow
for the next twelve months beginning Q1 2023 and full availability
(at March 31, 2023) under the company's committed $115.75 million
first lien revolver due May 2026. Uses are limited to about $7
million in mandatory debt amortizations, prior to consideration of
the excess cash flow sweep. The revolver has a springing maximum
first lien net leverage covenant when drawings exceed 30% of the
total commitment with which Moody's expect the company to remain in
compliance over the next 12 months. The company has limited sources
of alternate liquidity.
The stable rating outlook reflects Moody's view that OMNIA will
maintain solid revenue growth and robust profit margins, with
financial leverage sustained below 4x and interest coverage around
2.5x.
NIPA's first lien revolving credit facility due 2026 and first lien
term loan due 2025 are rated B1, one notch above the CFR. The
facilities are guaranteed by OMNIA Partners and its operating
subsidiaries, with cross guarantees in the restricted group and
secured by a first lien pledge of substantially all of the
company's domestic assets. The rating reflects the priority
position of the credit facilities in the capital structure and the
layer of loss absorption provided by the second lien term loan due
2026. The second lien term loan is rated Caa1, two notches below
the CFR reflecting the subordinated position relative to the first
lien facilities. The second lien term loan is secured by a second
lien pledge of substantially all of the company's domestic assets.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if the company refinances the 2025
term loan while sustaining Debt/EBITDA below 4x, EBITDA/Interest
above 3x, demonstrates a conservative financial policy track
record, and maintains a strong liquidity profile.
The ratings could be downgraded if the company faces deterioration
in revenue, earnings or operating margins, debt/EBITDA is above
5.5x, EBITDA/interest is below 2x or liquidity becomes weak.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
Headquartered in Franklin, TN, National Intergovt Purchasing
Alliance Co ("NIPA"), a wholly owned subsidiary of OMNIA Partners,
Inc., which through its subsidiaries (OMNIA Partners, Public Sector
and OMNIA Partners, Private Sector) is a leading a group purchasing
organization (GPO) serving state and local public agencies,
educational institutions and corporate clients in the United
States.
OZ NATURALS LLC: Seeks to Hire Wernick Law as Bankruptcy Counsel
----------------------------------------------------------------
OZ Naturals, LLC seeks approval from the U.S. Bankruptcy Court for
the Southern District of Florida to employ Wernick Law, PLLC as its
legal counsel.
The Debtor requires legal counsel to:
(a) give advice with respect to the powers and duties of the
Debtor;
(b) advise the Debtor with respect to its responsibilities in
complying with the U.S. Trustee's Operating Guidelines and
Reporting Requirements and with the rules of the court;
(c) prepare legal documents necessary in the administration of
the Debtor's Chapter 11 case;
(d) protect the interest of the Debtor in all matters pending
before the court; and
(e) represent the Debtor in negotiations with creditors in the
preparation of a Chapter 11 plan.
The firm will be paid at these rates:
Attorneys $475 to $600 per hour
Paralegals $200 per hour
In addition, the firm will receive reimbursement for out-of-pocket
expenses incurred.
The firm received from the Debtor a retainer of $40,000.
Aaron Wernick, Esq., the firm's attorney 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 at:
Aaron A. Wernick, Esq.
Wernick Law, PLLC
2255 Glades Road, Suite 324A
Boca Raton, FL 33431.
Tel: 901-525-1322
Fax: 901-525-2389
Email: awernick@wernicklaw.com
About OZ Naturals
OZ Naturals, LLC is a manufacturer of natural skin care products in
West Palm Beach, Fla.
OZ Naturals sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 23-13005) on April 18,
2023. In the petition signed by its chief financial officer,
Michael D. Small, the Debtor disclosed $633,123 in assets and
$1,482,356 in liabilities.
Judge Mindy A. Mora oversees the case.
Aaron A. Wernick, Esq., at Wernick Law, PLLC, represents the Debtor
as legal counsel.
PACIFIC BEND: Court OKs Final Cash Collateral Access
----------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California,
Riverside Division, authorized Pacific Bend, Inc. to use cash
collateral on a final basis.
As previously reported by the Troubled Company Reporter, prior to
the bankruptcy filing, the Debtor and Performance Steel, Inc.
entered into a Letter of Intent for Performance Steel's purchase of
50% of the Company's stock. During the due diligence period, and in
good faith, the Debtor made payments on the Performance Steel
indebtedness per Performance Steel's requests. During that time,
however, Jim Russell, an owner of Performance Steel, made demands
and exerted managerial control over the Debtor -- to the Debtor's
detriment -- before actually acquiring its stock. By the time the
LOI expired, the relationship soured, and the Debtor decided not to
proceed with the proposed sale to Performance Steel. In response,
Performance Steel declared an "Event of Default" on the grounds it
deemed Debtor was unable to pay its indebtedness and directed
Debtor's customers to pay Performance Steel directly as a secured
creditor on the Debtor's account receivables.
Performance Steel asserts a secured claim against the Debtor in the
amount of $6.268 million. Performance Steel filed a UCC Financing
Statement with the Secretary of State for the State of California
on October 20, 2022.
On June 29, 2021, the Debtor obtained a loan from Midfirst Bank.
Midfirst filed a UCC Financing Statement with the Secretary of
State for the State of California on June 29, 2021. As of the
Petition Date, the amount due to Midfirst for the loan was
approximately $751,561.
Big Dog Properties, LLC asserts a secured claim against the Debtor
in the amount of $8.7 million. According to the Debtor, Big Dog is
associated with Performance Steel and shares the same counsel. Big
Dog may also claim an interest in the Debtor's machinery and/or
cash collateral. Big Dog recorded a First Deed of Trust and
Security Agreement in the County of Riverside on or about July 20,
2022.
The Debtor's unsecured claims total approximately $1.640 million.
The Debtors' debts (both secured and unsecured) total approximately
$17.360 million, while its assets total approximately $25.670
million.
As adequate protection, Mid-First Bank and Performance Steel were
granted replacement liens on, and security interests in, all assets
of the bankruptcy estate of the Debtor including, but not limited
to, post-petition assets acquired by the Debtor, with the same
extent, validity, and priority (if any) as the pre-petition liens
of the secured creditors on pre-petition collateral.
Pursuant to the Court Order, the Debtor was allowed to make
additional monthly payments to Performance Steel in the amount of
$67,738 per month on account of the accounts receivable.
A copy of the order is available at https://bit.ly/3ADSP8i from
PacerMonitor.com.
About Pacific Bend, Inc.
Pacific Bend, Inc. manufactures pallet racking. The Debtor sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. C.D.
Cal. Case No. 23-10761) on February 28, 2023. In the petition
signed by Darlene Barios, the Debtor's CEO, the Debtor disclosed up
to $50 million in both assets and liabilities. Barios is also the
Debtor's president, officer, director, and shareholder.
Judge Wayne Johnson oversees the case.
Vanessa M. Haberbush, Esq., at Haberbush, LLP, represents the
Debtor as legal counsel.
PACIFIC POURHOUSE: Seeks Cash Collateral Access
-----------------------------------------------
Pacific Pourhouse, LLC, a California Limited Liability Company,
asks the U.S. Bankruptcy Court for the Northern District of
California, Oakland Division, for authority to use cash collateral
and provide adequate protection.
The Debtor requires the use of cash collateral to continue its
operations. The Debtor has an active COVID-19 EIDL Disaster Relief
Loan with a balance of approximately $266,000 secured by a
first-priority lien on all of the Debtor's assets. Aside from the
Small Business Administration loan, the Debtor does not believe
there are any liens or security interests on the Debtor's assets,
cash, accounts receivable, physical assets or any other of the
proceeds or assets.
As of April 21, 2023, the Debtor holds approximately $24,000 in
cash on hand. The cash collateral the Debtor seeks authority to use
is comprised of cash on hand and funds to be received post-petition
on account of the Debtor's normal business, accounts receivables or
otherwise.
As adequate protection for the use of the cash collateral, the
Debtor proposes granting the SBA a replacement lien, up to the
value of its collateral, on cash collateral and all assets of the
Debtor to the same validity, extent, and priority that the SBA
possessed in the pre-petition cash and accounts receivable as of
April 21, 2023.
A hearing on the matter is set for May 2, 2023 at 1:30 p.m.
A copy of the motion is available at https://bit.ly/428xzU2 from
PacerMonitor.com.
About Pacific Pourhouse, LLC
Pacific Pourhouse, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Cal. Case No. 23-40464) on April
21, 2023. In the petition signed by Rajendran Nair, managing
member, the Debtor disclosed up to $100,000 in assets and up to $1
million in liabilities.
Judge William J. Lafferty, III oversees the case.
Ryan C. Wood, Esq., at the Law Offices of Ryan C. Wood, Inc.,
represents the Debtor as legal counsel.
PHOENIX BUILDING: SARE Seeks Chapter 11 Bankruptcy
--------------------------------------------------
The Phoenix Building Management LLC filed for chapter 11 protection
in the District of Massachusetts.
The Debtor is a single-asset real estate entity that owns a
mixed-use property at 315-321 Union Street, Rockland,
Massachusetts. The Property has ten units -- two commercial and
eight residential. The Property is fully occupied and generates
approximately $12,000 in monthly rent. The Property was appraised
for approximately $2.4
million, approximately a year ago.
The Debtor has no unsecured creditors. The Debtor's only secured
creditors, except for possibly the Town of Rockland for current
unpaid real estate taxes, are:
(1) U.S. Bank National Association, as Trustee for Velocity
Commercial Capital Loan Trust 2022-4, which holds a mortgage and
assignment of rents on the Property. The Debtor believes that the
Bank asserts it is currently owed approximately $1.62 million. The
Debtor disputes this amount; and
(2) Amida Special Opportunity Investments, LLC, which holds a
subordinate mortgage and assignment of rents, which secure a
guaranty by the Debtor of the obligations of an entity also owned
by the Debtor’s principal, William Barry. The Debtor does not pay
Amida, which is paid by the primary obligor. The Debtor believes
that Amida is owed approximately $1.1 million. The debt to Amida is
also collateralized by other properties, including property owned
by the primary obligor.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
May 15, 2023 at 1:30 p.m. in Room Telephonically on telephone
conference line: 877-369-9123 (participant passcode: 8635039#).
About Phoenix Building Management
The Phoenix Building Management LLC owns two commercial and eight
residential units (currently fully tenanted) located at 315-321
Union Street, Rockland, MA, having an appraised value of $2.4
million.
Phoenix Building Management LLC filed a petition for relief under
Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. D. Mass.
Case No. 23-10579) on April 14, 2023.
In the petition filed by William T. Barry, as manager, the Debtor
reported total assets of $2,500,000 and total liabilities of
$1,627,000. The petition states that funds will not be available
to unsecured creditors.
The Debtor is represented by:
David B. Madoff, Esq.
Madoff & Khoury LLP
315-321 Union Street
Rockland, MA 02370
Tel: 508-543-0040
Fax: 508-543-0020
Email: alston@mandkllp.com
POLK AZ: Seeks Cash Collateral Access
-------------------------------------
Polk AZ, LLC asks the U.S. Bankruptcy Court for the District of
Arizona for authority to use cash collateral and provide adequate
protection.
The Debtor requires the use of cash collateral to continue its
operations.
The Debtor owns and maintains property, including accounts
receivable currently collectable necessary for operation of its
business. The Property is located at 411 North 21st Place/2148 East
Polk Street, Phoenix, AZ. The Property is a 32-unit apartment
complex. Id. The Debtor's Property is now in aggregate worth
approximately $3.6 million.
The Property's value is currently stable. However, it will rise to
approximately $5.9 million in value upon the repair and
reconstruction of two fire damaged units in a five-unit building
that cannot be currently leased.
As of the Petition Date, the Debtor owes approximately $1.8 million
of secured debt on the Property to Haymarket Insurance Co.
The Debtor proposes using the accounts receivable from the Debtor's
operations to maintain and operate the Property, and to use the
accounts receivable to pay any actual ordinary course expenses
incurred in operating and maintaining the Property. The Debtor
estimates current monthly revenues to be in the approximate amount
of $9,539, and aggregate monthly operational expenses to be $4,347,
leaving sufficient revenues to fund these expenses.
The interests of the Debtor's lender will be adequately protected
by the continued operation of the Property in accordance with the
Declaration.
Not only does the continued operation maintain the current
going-concern value of the collateral, but potentially increases
that value by making it possible to attract more tenants and
increase the revenues. Moreover, under the Debtors' proposal, the
balance of "net" revenues generated by accounts receivable will be
held in a bank account pending further Court order.
The Debtor provided for $22,338 in total projected receipts and
$14,536 in total projected disbursements.
A copy of the motion is available at https://bit.ly/3oUxjtt from
PacerMonitor.com.
About Polk AZ LLC
Polk AZ LLC sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D. Ariz. Case No. 21-07693) on Oct. 13, 2021. Jean
Gonzvar, designated representative, signed the petition. Judge
Eddward P. Ballinger, Jr. oversees the case. Engelman Berger, PC,
serves as the Debtor's counsel.
Haymarket Insurance Company, as lender, is represented by Patrick
F. Keery, Esq., at Kerry McCue.
PRECISION FORGING: Taps Goe Forsythe & Hodges as Legal Counsel
--------------------------------------------------------------
Precision Forging Dies, Inc. seeks approval from the U.S.
Bankruptcy Court for the Central District of California to employ
Goe Forsythe & Hodges, LLP as its legal counsel.
The Debtor requires legal counsel to:
a. advise and assist the Debtor with respect to compliance with
the requirements of the Office of the U.S. Trustee;
b. advise the Debtor regarding matters of bankruptcy law,
including the rights and remedies of Debtor with respect to its
assets and claims of creditors;
c. represent the Debtor in any proceedings or hearings in the
bankruptcy court and in any action in any other court where its
rights under the Bankruptcy Code may be litigated or affected;
d. conduct examinations of witnesses, claimants or adverse
parties, and assist in the preparation of reports, accounts, and
pleadings related to the case;
e. advise the Debtor concerning the requirements of the
Bankruptcy Code and applicable rules;
f. assist the Debtor in negotiation, formulation, confirmation,
and implementation of a Chapter 11 plan of reorganization;
g. make any bankruptcy court appearances on behalf of the
Debtor; and
h. perform such other services as the Debtor may require of the
firm in connection with its Chapter 11 case.
The firm will be paid at these rates:
Attorneys $375 to $595 per hour
Of Counsel $385 to $625 per hour
Paralegals $185 to $195 per hour
In addition, the firm will receive reimbursement for out-of-pocket
expenses incurred.
The firm received a pre-bankruptcy retainer of $30,000 from the
Debtor's funds held by Nathan Dawood, the Debtor's loss mitigation
officer, of which $6,843.50 remains in the firm's trust account
after payment of pre-bankruptcy fees and costs.
Robert Goe, Esq., a partner at Goe Forsythe & Hodges, disclosed in
a court filing that his firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Robert P. Goe, Esq.
Goe Forsythe & Hodges, LLP
17701 Cowan, Suite 210
Irvine, CA 92614
Telephone: (949) 798-2460
Facsimile: (949) 955-9437
Email: rgoe@goeforlaw.com
About Precision Forging Dies
Precision Forging Dies, Inc. -- https://precisionforgingdies.com --
specializes in precision manufacturing and servicing of structural
components, tooling, and turbines for military, commercial and
space industries. The company is based in South Gate, Calif.
Precision Forging Dies filed a petition for relief under Subchapter
V of Chapter 11 of the Bankruptcy Code (Bankr. C.D. Calif. Case No.
23-12015) on April 3, 2023. In the petition filed by its chief
executive officer, Dan Kloss, the Debtor reported $10 million to
$50 million in assets and $1 million to $10 million in
liabilities.
Judge Julia W. Brand oversees the case.
Robert P. Goe, Esq., at Goe Forsythe & Hodges, LLP is the Debtor's
legal counsel.
PRESTON URGENT: Taps Sheehan & Associates as Legal Counsel
----------------------------------------------------------
Preston Urgent Care Family Practice, LLC received interim approval
from the U.S. Bankruptcy Court for the Northern District of West
Virginia to employ Sheehan & Associates, PLLC to serve as legal
counsel in its Chapter 11 case.
The Debtor requires legal counsel to:
a. give advice with respect to the powers and duties of the
Debtor, assist in the administration of the estate, and prepare a
plan of reorganization;
b. prepare legal papers;
c. represent the Debtor at court hearings;
d. investigate and institute any proceedings relating to
transactions between the Debtor and its creditors; and
e. perform other necessary legal services.
The firm will be paid $425 per hour for attorneys and $125 per hour
for paralegals.
Martin Sheehan, Esq., a partner at Sheehan & Associates, 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:
Martin P. Sheehan, Esq.
Sheehan & Associates, PLLC
1 Community St., Ste 200
Wheeling WV 26003
Tel: (304) 232-1064
Fax: (304) 232-1066
Email: Martin@MSheehanLaw.net
About Preston Urgent Care Family Practice
Preston Urgent Care Family Practice, LLC, a company in Kingwood,
W.Va., sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. N.D. W.Va. Case No. 23-00185) on April 17, 2023, with
$665,118 in assets and $1,364,407 in liabilities. Peg Phillips,
owner of Preston, signed the petition.
Martin P. Sheehan, Esq., at Sheehan & Associates, PLLC, represents
the Debtor as legal counsel.
PROFESSIONAL CHARTER: Wins Interim Cash Collateral Access
---------------------------------------------------------
Professional Charter Services, LLC asks the U.S. Bankruptcy Court
for the Northern District of California, San Francisco Division,
for authority to use cash collateral for regular business
operations consistent with the budget.
As of the Petition Date, FC Market Place, LLC, CT Corporate System,
LLC, U.S. Small Business Administration, and Corporation Service
Company each asserted a security interest in certain collateral of
the Debtor, including deposit accounts and accounts receivable.
As of the Petition Date, the Debtor had outstanding accounts
receivable from various customers, for which transportation
services have already been provided, in the approximate amount of
$478,148, and upwards of $100,000 of these accounts receivable may
be doubtful or uncollectible.
The proposed term for use of cash collateral by the Debtor is the
earlier of the effective date of a Chapter 11 plan, dismissal or
conversion of this case, removal of the Debtor as
debtor-in-possession for cause, appointment of a Sub-Chapter V
Trustee to administer the estate, sale of the accounts receivable,
or further Court order.
The Debtor proposes to provide each of the Secured Creditors with
replacement liens on all accounts receivable generated
post-petition in the same nature, extent, validity, and priority
pursuant to 11 U.S.C. section 361(2). Given that the Debtor
anticipates it should generate post-petition accounts receivable in
an amount equal to or greater than the amount of its pre-petition
accounts receivable, these replacement liens should more than
adequately protect each of the Secured Creditors.
Further, to the extent required by the Court, the Debtor is also
willing to provide the Secured Creditors with adequate protection
cash payments, which would be consistent with proposed treatment
under a plan of reorganization, although the Debtor has less
flexibility given its limited financial resources, and this is a
much less desirable form of adequate protection for the Debtor
under the circumstances.
In the event the Court also requires the Debtor to provide cash
payments (in addition to replacement liens) to the Secured
Creditors, then the Debtor suggests the cash payments be deferred
until the hearing on final approval of the Motion. The Debtor will
submit a proposal for these cash payments consistent with proposed
treatment under a plan of reorganization.
* * *
A hearing on the matter was held May 3 at 10 a.m. Following the
hearing, the Debtor's request, which was unopposed, was granted on
an interim basis. A hearing on final approval will be held June 8
at 10:00 a.m.
A copy of the Debtor's motion is available at
https://bit.ly/3LMt0cE from PacerMonitor.com.
About Professional Charter Services, LLC
Professional Charter Services, LLC is a bus charter company founded
in 2008. In the petition signed by Celeste Orozco, vice president,
the Debtor disclosed $2,652,026 in assets and $6,709,007 in
liabilities.
Judge Hannah L. Blumenstiel oversees the case.
Brent D. Meyer, Esq., at Meyer Law Group, LLP, represents the
Debtor as legal counsel.
PROTECH METALS: Seeks Cash Collateral Access
--------------------------------------------
Protech Metals, LLC asks the U.S. Bankruptcy Court for the Middle
District of North Carolina, Greensboro Division, for authority to
use cash collateral.
The Debtor is dependent upon the use of the cash collateral to pay
on-going costs of operating the business and insuring, preserving,
repairing and protecting all its tangible assets.
The Debtor is owned by Dr. Myra Hall and Mr. William Rickey Hall.
As of the bankruptcy filing date, the Debtor was under the
management of AccessHeat, Inc., a Delaware corporation. The Halls
do not know if AccessHeat and the people associated with it to be
acting fraudulently or are severely mismanaging the business. The
Halls have sent the Debtor into bankruptcy to reassert control and
protect the customers, creditors, and other stakeholders so the
actions of AccessHeat can be investigated.
The Debtor's bank accounts are subject to:
-- a lien by NowAccount Network Corporation based on a UCC-1
financing statement filed on July 28, 2022.
-- a lien by Carolina Business XChange d/b/a Sunbelt Business
Brokers of Durham based on filed UCC-1 financing statement filed on
August 1, 2022.
-- a lien by CT Corporation System based on filed UCC-1
financing statement filed on September 12, 2022.
-- a lien by CT Corporation System based on filed UCC-1
financing statement filed on September 22, 2022.
-- a lien by Corporation Service Company based on filed UCC-1
financing statement filed on December 13, 2022.
The liens held by NowAccount Network Corporation, Carolina Business
XChange d/b/a Sunbelt Business Brokers of Durham, CT Corporation
System, and Corporation Service Company assert a secured interest
in the deposit accounts of which would constitute "Cash Collateral"
as that term is defined in the Bankruptcy Code.
The Debtor offers to provide the secured parties with adequate
protection for the use of cash collateral by:
a. Limiting the use of cash collateral as generally projected
in the proposed budget and as set forth in the proposed Interim
Order, or as may otherwise be approved by the Court after further
notice and hearing.
b. Providing to the secured parties, the Bankruptcy
Administrator, and any Committee subsequently appointed (i)
evidence of adequate insurance in effect with respect to all
insurable property of the estate, and (ii) actual reports on a
monthly basis by the 21st day of the following month, with the
first such report due May 21, 2023, and (iii) such other financial
reports as may be reasonably requested from the Debtor by such
parties.
The Debtor seeks authority to use cash collateral through and
including (i) the effective date of a confirmed plan of
reorganization, (ii) a sale of substantially all of the assets of
the estate, or (iii) the conversion of the case to Chapter 7,
whichever may first occur; provided, however, without further
notice and hearing the Debtor may not use cash collateral for any
purpose other than (i) operations in the ordinary course of
business, (ii) monthly payments on executory contracts or leases,
or (iii) payment of allowed administrative fees, costs, or
expenses.
A copy of the motion is available at https://bit.ly/44ebcyn from
PacerMonitor.com.
About Protech Metal Finishing
Protech Metal Finishing, LLC sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. M.D.N.C. Case No. 23-80078) on April
27, 2023. In the petition signed by William Rickey Hall,
member-manager, the Debtor disclosed up to $50,000 in assets and up
to $500,000 in liabilities.
Erik M. Harvey, Esq., at Bennett Guthrie PLLC, represents the
Debtor as legal counsel.
PSG MORTGAGE: Case Summary & Two Unsecured Creditors
----------------------------------------------------
Debtor: PSG Mortgage Lending Corp, a Delaware Corporation
16441 Scientific Suite 250
Irvine, CA 92618
Chapter 11 Petition Date: May 3, 2023
Court: United States Bankruptcy Court
Northern District of California
Case No.: 23-30281
Judge: Hon. Dennis Montali
Debtor's Counsel: Matthew D. Metzger, Esq.
BELVEDERE LEGAL, PC
1777 Borel Place, Suite 314
San Mateo, CA 94402
Tel: 415-513-5980
Fax: 415-513-5985
Email: info@belvederelegal.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Philip Fusco as chief executive
officer.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/FRXL24A/PSG_Mortgage_Lending_Corp_a_Delaware__canbke-23-30281__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's Two Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. City and County of Permit Application $50,000
San Francisco and Fees
49 South Van Ness Avenue
San Francisco, CA 94103
2. SF Bay Conservation & $90,000
Development Comm.
375 Beale Street,
Suite 510
San Francisco, CA 94105
PUERTO RICO: Lack of Consensus Could Force PREPA Case Dismissal
---------------------------------------------------------------
Robert Slavin of The Bond Buyer reports that the lack of consensus
on a proposed plan of adjustment risked dismissal of the Puerto
Rico Electric Power Authority bankruptcy proceedings, District
Court Judge Laura Taylor Swain warned parties Monday, April 24,
2023.
If proceedings are dismissed the immediate issue would be who would
run the authority, said John Hallacy, president of John Hallacy
Consulting. Would the bondholders continue with the existing
parties, Genera and LUMA Energy, or would they seek others? PREPA
would have to generate enough income to cover bond payments, he
said.
Bondholders would probably accept a modest haircut, Hallacy said.
But, he suggested, they should try to reach a deal now.
About Puerto Rico
Puerto Rico is a self-governing commonwealth in association with
the United States. The chief of state is the President of the
United States of America. The head of government is an elected
Governor. There are two legislative chambers: the House of
Representatives, 51 seats, and the Senate, 27 seats. The
governor-elect is Ricardo Antonio "Ricky" Rossello Nevares, the son
of former governor Pedro Rossello.
In 2016, the U.S. Congress passed PROMESA, which, among other
things, created the Financial Oversight and Management Board and
imposed an automatic stay on creditor lawsuits against the
government, which expired May 1, 2017.
The members of the oversight board are: (i) Andrew G. Biggs, (ii)
Jose B. Carrion III, (iii) Carlos M. Garcia, (iv) Arthur J.
Gonzalez, (v) Jose R. Gonzalez, (vi) Ana. J. Matosantos, and (vii)
David A. Skeel Jr.
On May 3, 2017, the Commonwealth of Puerto Rico filed a petition
for relief under Title III of the Puerto Rico Oversight,
Management, and Economic Stability Act ("PROMESA"). The case is
pending in the United States District Court for the District of
Puerto Rico under case number 17-cv-01578. A copy of Puerto Rico's
PROMESA petition is available at
http://bankrupt.com/misc/17-01578-00001.pdf
On May 5, 2017, the Puerto Rico Sales Tax Financing Corporation
(COFINA) commenced a case under Title III of PROMESA (D.P.R. Case
No. 17-01599). Joint administration has been sought for the Title
III cases.
On May 21, 2017, two more agencies -- Employees Retirement System
of the Government of the Commonwealth of Puerto Rico and Puerto
Rico Highways and Transportation Authority (Case Nos. 17-01685 and
17-01686) -- commenced Title III cases.
U.S. Chief Justice John Roberts named U.S. District Judge Laura
Taylor Swain to preside over the Title III cases.
The Oversight Board has hired as advisors, Proskauer Rose LLP and
O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic
consultant, Citigroup Global Markets as municipal investment
banker, and Ernst & Young, as financial advisor.
Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M.
Abelson, Esq., of Proskauer Rose LLP; and Hermann D. Bauer, Esq.,
at O'Neill & Borges LLC are onboard as attorneys.
Prime Clerk LLC is the claims and noticing agent. Prime Clerk
maintains the case web site
https://cases.primeclerk.com/puertorico
Jones Day is serving as counsel to certain ERS bondholders.
Paul Weiss is counsel to the Ad Hoc Group of Puerto Rico General
Obligation Bondholders.
RED HAT: New Equity Contribution & Store Lease to Fund Plan
-----------------------------------------------------------
Red Hat Realty, LLC, filed with the U.S. Bankruptcy Court for the
District of New Hampshire a Disclosure Statement pertaining to Plan
of Reorganization dated April 30, 2023.
The Debtor purchased the Real Estate during June 2008 in a short
sale by the former owners with the consent of TD Bank Daniel
Plourde and his father, Oscar Plourde and mother, Mary Plourde
formed the Debtor purchase the Real Estate.
The Debtor and Plourde Sand are affiliates through Daniel Plourde.
Daniel Plourde and Dawn Plourde are insiders with respect to the
Debtor.
The Plan is what is frequently described as "bootstrap"
reorganization plan. While there is no guarantee of success, the
Debtor believes that the Confirmation of the Plan is in the best
interests of creditors as a whole.
The Plan will be funded as follows: (a) one or more of the existing
Equity Holders of the Debtor will make the New Equity Contribution
to the Debtor in the amount of $10,000, which will be used to pay
the Confirmation Dividend due Non-Priority Allowed Unsecured
Creditors on the Effective Date and (b) the execution of the New
Store Lease that will pay the other Dividends due Allowed Creditors
under the Plan.
Class 3 consists of Non-Priority Unsecured Claims. Under the Plan,
each Non-Priority Allowed Unsecured Creditor will be paid a
fractional or proportionate share of the New Equity Contribution of
$10,000 on the Effective Date, the numerator of which will be the
amount of the Non-Priority Allowed Unsecured Claim and the
denominator of which will be the total amount of Non-Priority
Allowed Unsecured Claims.
Class 5 consists of Equity Holder Interests. This Class includes
Daniel O. Plourde and the Oscar P. and Mary L. Plourde Trust who
are the sole members of the Debtor and any and all persons claiming
equity interests in the Debtor by, through or under him. On the
Effective Date, the Equity Interests will be canceled without the
payment of any dividend and replaced by the New Equity Interests to
be issued to the members making the New Equity Contribution.
Following Confirmation, the Debtor, which may be referred to as the
Reorganized Debtor, will continue to be a New Hampshire limited
liability company.
On the Effective Date, the Debtor shall issue New Equity Interests
in the Debtor to one or more of the pre-petition Equity Holders of
the Debtor in consideration of the payment of the sum of $10,000,
which exceeds the reorganization value of the property to be
retained by the Debtor pursuant to the Plan. The New Equity
Interests shall be issued to the Equity Holders in proportion to
the amounts contributed to the New Equity Contribution.
On or before the Effective Date, the Debtor will enter into the New
Store Lease with Loudon Country Store or a new tenant to fund the
Plan. The New Store Lease will be a triple net lease that obligates
the tenant to pay an amount equal to the monthly Dividends due
creditors under this Plan as base rent and all of the costs and
expenses incidental to owning the Real Estate, including without
limitation, real estate taxes, insurance premiums and utilities.
A full-text copy of the Disclosure Statement dated April 30, 2023
is available at https://bit.ly/3LRen7Y from PacerMonitor.com at no
charge.
Debtor's Counsel:
William S. Gannon, Esq.
William S. Gannon, PLLC
740 Chestnut Street
Manchester NH 03104
Telephone: (603) 621-0833
Facsimile: (603) 621-0830
Email: bgannon@gannonlawfirm.com
About Red Hat Realty
Red Hat Realty, LLC, filed a petition for relief under Subchapter V
of Chapter 11 of the Bankruptcy Code (Bankr. D.N.H. Case No.
23-10040) on Jan. 30, 2023. In the petition signed by Daniel O.
Plourde, manager and sole member, the Debtor reported $328,700 in
total assets and $4,122,989 in total liabilities. William S.
Gannon, PLLC serves as the Debtor's counsel.
RENNASENTIENT INC: Court OKs Interim Cash Collateral Access
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of North
Carolina, Raleigh Division, authorized Rennasentient, Inc. to use
cash collateral on an interim basis in accordance with the budget,
with a 10% variance.
The Debtor requires the use of cash collateral to pay its ordinary
operating expenses and that such use is necessary to avoid
irreparable harm to the Debtor's rehabilitation under the
Bankruptcy Code.
Wells Fargo Bank and the U.S. Small Business Administration assert
an interest in the Debtor's cash collateral. Wells Fargo is owed
$824,000 and the SBA is owed $147,750.
As adequate protection, the Secured Creditors are granted a lien in
after-acquired revenue to the same extent and priority as they had
prior to the filing of the case.
Wells Fargo is entitled to additional adequate protection in the
form of payment of $5,000 during the second interim period, to be
delivered no later than May 7, 2023.
The Debtor will remain current in the payment of all post-petition
federal, state, and local tax liabilities, including but not
limited to accruing ad valorem property taxes, sales taxes, payroll
taxes and income taxes.
A further hearing on the matter is set for May 16, 2023 at 10:30
a.m.
A copy of the Court's order and the Debtor's budget is available at
https://bit.ly/41NZusP from PacerMonitor.com.
The Debtor projects $95,000 in revenue and $99,465 in total
expenses for the period April 21 to May 20, 2023.
About Rennasentient, Inc.
Rennasentient, Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.C. Case No. 23-00485) on February 21,
2023. In the petition signed by Eric Webb, president, the Debtor
disclosed up to $1 million in assets and up to $10 million in
liabilities.
Judge David M. Warren oversees the case.
Philip M. Sasser, Esq., at Sasser Law Firm, represents the Debtor
as legal counsel.
RFS INVESTMENT: Seeks to Hire RHM Law as Bankruptcy Counsel
-----------------------------------------------------------
RFS Investment Co. LLC seeks approval from the U.S. Bankruptcy
Court for the Central District of California to employ RHM Law, LLP
as its bankruptcy counsel.
The firm's services include:
a. legal advice regarding compliance with the requirements of
the Office of the U.S. Trustee;
b. advice regarding matters of bankruptcy law, including the
rights and remedies of the Debtor with respect to its assets and
claims of creditors;
c. advice regarding cash collateral matters;
d. examinations of witnesses, claimants or adverse parties and
the preparation of reports, accounts and pleadings;
e. advice concerning the requirements of the Bankruptcy Code and
applicable rules;
f. negotiation, formulation, confirmation and implementation of
a Chapter 11 plan of reorganization; and
g. court appearances.
The firm will be paid at these rates:
Partners $525 to $575 per hour
Associates $250 to $475 per hour
Paralegals $135 per hour
In addition, the firm will receive reimbursement for out-of-pocket
expenses incurred.
The Debtor paid the firm an initial retainer of $20,000.
Roksana Moradi-Brovia, Esq., a partner at RHM Law, 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:
Roksana D. Moradi-Brovia, Esq.
Matthew D. Resnik, Esq.
RHM Law, LLP
17609 Ventura Blvd., Suite 314
Encino, CA 91316
Tel: (818) 285-0100
Fax: (818) 855-7013
Email: roksana@RHMFirm.com
matt@RHMFirm.com
About RFS Investment Co.
RFS Investment Co. LLC owns and operates fast food restaurants,
primarily Carl's Jr. franchise restaurants in California.
RFS Investment sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Calif. Case No. 23-11882) on March 29,
2023, with $1 million to $10 million in assets and up to $50,000 in
liabilities. Ramin Javahery, a member of RFS Investment, signed the
petition.
Judge Sandra R. Klein oversees the case.
The Debtor is represented by RHM Law, LLP.
SAN FRANCISCO ART INSTITUTE: Files for Chapter 7 Bankruptcy
-----------------------------------------------------------
Jessica Christian of San Francisco Chronicle reports that the San
Francisco Art Institute has filed for Chapter 7 bankruptcy
protection, a move that will force the 152-year-old institution to
liquidate its assets and abandon its legendary campus on the edge
of Russian Hill.
The Art Institute filed for bankruptcy on April 19, 2023. according
to documents reviewed by The Chronicle.
"It was a good run for 152 years and it is such a tragedy that it
is gone," said John Marx who served as co-chair of the institute's
board. "The passion was there until the very end and up to the
moment that we filed we were still trying to get a couple of
billionaires on the East Coast to help us out but it just didn't
work out."
Added his co-chair Lonnie Graham, "after every single possible
effort we just weren't able to get the support that was necessary
to keep it going. It is tragic."
Chapter 7 bankruptcy requires liquidation of assets in order to
repay creditors. A meeting of the creditors will be held May 17.
Most prominent among them is the University of San Francisco, which
claims it is owed around $6 million for costs incurred in
exploring a relationship between the two institutions in an attempt
to save the art school. But USF ultimately decided not to go
through with it in July 2022, and the Art Institute announced it
would cease operations, ending a San Francisco tradition that dates
back to 1871.
"The Making of a Fresco Showing the Building of a City" painted by
Diego Rivera in 1931 sits in a private gallery at San Francisco Art
Institute in San Francisco, California.
"The Making of a Fresco Showing the Building of a City" painted by
Diego Rivera in 1931 sits in a private gallery at San Francisco Art
Institute in San Francisco, Calif.
The other main creditors are the Art Institute's landlords, who
claim they're owed unpaid rent. The Regents of the University of
California own the building and the land at the main campus, 800
Chestnut Street, under a complicated arrangement of a will that
donated the property. It claims $450,000 in unpaid rent.
Fort Mason Center for Arts and Culture owns the pier under the
graduate school, a $14 million campus that opened in 2017 in a
spectacularly ill-timed expansion in the face of dramatically
declining enrollment and an increasing debt load.
The Fort Mason campus closed in March 2020, with the Art Institute
abandoning a 55-year master lease. It was finally evicted for
nonpayment of rent last 2022. The space remains vacant. The Fort
Mason claims it is owed in excess of $750,000.
"SFAI's closure and pending bankruptcy is a loss for every San
Franciscan who values the city's creative spirit," said Mike
Buhler, President and CEO of Fort Mason Center for Arts and
Culture.
AT&T is owed $30,000, PG&E is owed $6,900 and the annotated list
goes on for 49 pages, all the way to Bay Alarm, which is owed
$1,305 and Dewey Pest Control which is owed $816. Also among the
creditors are every faculty member who has lost his or her job in
the upheaval and is owed severance.
Total liabilities listed on the bankruptcy filing total little more
than $10 million.
Among assets the Art Institute lists $9.35 in an account at Silicon
Valley Bank, and $125,000 in the value of an untitled painting by
noted Mission School artist Alicia McCarthy. There is also $50,000
in office equipment and art-making machinery.
But the main asset is "The Making of a Fresco Showing the Building
of a City," a mural painted on commission by Diego Rivera in 1931.
It hangs in its own namesake gallery on the main campus. That is
valued in the bankruptcy declaration at $50 million, though the
statement notes that it has not been appraised within the last
2022.
The total value of assets is just under $65 million, according to
the Art Institute.
When it became known that the Art Institute was possibly shopping
the Diego Rivera mural around, it was declared a city landmark and
cannot be moved without permission of the San Francisco Board of
Supervisors. Had it been allowed to sell the Rivera mural for $50
million, as was rumored, it would have saved the Art Institute,
Marx told The Chronicle.
"It is the last chapter of a long running civic education arts
tragedy," said Supervisor Aaron Peskin who sponsored the
legislation to landmark the mural. "The legacy lives everywhere.
All around this city and this country is the art that this
institution produced and fostered, from Annie Liebovitz to North
Beach’s own Dennis Hearne. But at this point it is over."
The Rivera fresco will remain and Peskin is already looking into
ways to put it onto public gallery.
This year the Art Institute established a Legacy Foundation and in
March the 152nd anniversary of the school was honored. The
foundation rented space at Crown Point Press for the SFAI archives
and it is not known if those materials will be affected by the
bankruptcy filing.
Through a spokesperson, administrators at the University of San
Francisco confirmed it was a secured creditor but declined to
comment further. The UC Office of the President also did not
respond to a request for comment.
The Art Institute closed its main campus in 2022 after many years
of failed board reorganizations, capital campaigns and fundraisers
that were mounted to stave off ruin at the once proud art school
where Ansel Adams, Richard Diebenkorn and Wayne Thiebaud taught.
The student body, which had been as high as 700, was down to 41
students at the time of its closure.
"The reality is that schools this size that are tuition based are a
vanishing species," said Gordon Knox, a former president of the
institute. "And there is no changing evolution."
About San Francisco Art Institute (SFAI)
San Francisco Art Institute was founded in 1871. It is one of the
nation's oldest and most prestigious schools of higher education in
contemporary art.
San Francisco Art Institute sought relief under Chapter 7 of the
U.S. Bankruptcy Code (Bankr. N.D. Cal. Case No. 23-30250) on April
19, 2023.
The Honorable Bankruptcy Judge Hannah L Blumenstiel handles the
case.
The Debtor is represented by:
Thomas B. Rupp, Esq.
Keller Benvenutti Kim LLP
650 California Street, Suite 1900
San Francisco, CA 94108
Tel. No. 415-636-9015
Email: trupp@kbkllp.com
SORRENTO THERAPEUTICS: Scilex Stock Shares Restrictions Extended
----------------------------------------------------------------
Sorrento Therapeutics, Inc. (OTC: SRNEQ, "Sorrento"), a
biopharmaceutical company dedicated to the development of
life-saving therapeutics to treat cancer, intractable pain, and
infectious disease, announced on April 25, 2023 that, in connection
with its ongoing chapter 11 case, the U.S. Bankruptcy Court for the
Southern District of Texas entered an order extending the
expiration of the restrictions on transfer on the shares of common
stock of Scilex Holding Company ("Scilex") that were distributed by
Sorrento to its stockholders as a dividend on January 19, 2023
(the "Distributed Stock"). The order extends the restrictions on
transfer from May 11, 2023 to September 1, 2023 (or an otherwise
earlier date to be determined, as set forth in the order).
Accordingly, as described in the Bankruptcy Court's order, any
shares of the Distributed Stock (including any such shares held by
brokerage firms) may not be sold, transferred or otherwise disposed
of and the holders of Distributed Stock are prohibited from causing
or encouraging any third party to do the same. This extension
applies only to the Distributed Stock and does not apply to any
securities of Scilex held by Sorrento or any other Scilex
securities.
About Sorrento Therapeutics
Sorrento Therapeutics, Inc. -- http://www.sorrentotherapeutics.com/
-- is a clinical and commercial stage biopharmaceutical company
developing new therapies to treat cancer, pain (non-opioid
treatments), autoimmune disease and COVID-19. Sorrento's
multimodal, multipronged approach to fighting cancer is made
possible by its extensive immuno-oncology platforms, including key
assets such as next-generation tyrosine kinase inhibitors ("TKIs"),
fully human antibodies ("G-MAB(TM) library"), immuno-cellular
therapies ("DAR-T(TM)"), antibody-drug conjugates ("ADCs"), and
oncolytic virus ("Seprehvec(TM)"). Sorrento is also developing
potential antiviral therapies and vaccines against coronaviruses,
including STI-1558, COVISHIELD(TM) and COVIDROPS(TM), COVI-MSCTM;
and diagnostic test solutions, including COVIMARK(TM).
Sorrento Therapeutics, Inc., and Scintilla Pharmaceuticals, Inc.,
sought Chapter 11 protection (Bankr. S.D. Tex. Lead Case No.
23-90085) on Feb. 13, 2023. Sorrento disclosed assets in excess of
$1 billion and liabilities of about $235 million as of Feb. 10,
2023.
Judge David R. Jones oversees the cases.
Jackson Walker LLP and Latham & Watkins LLP are serving as legal
counsel to Sorrento. M3 Partners is serving as restructuring
advisor. Stretto Inc. is the claims agent.
On Feb. 28, 2023, the U.S. Trustee for Region 7 appointed an
official committee to represent unsecured creditors in the Debtors'
Chapter 11 cases. The committee is represented by the law firms of
Norton Rose Fulbright US, LLP and Milbank, LLP. Berkeley Research
Group, LLC is the committee's financial advisor.
SOURCEWATER INC: Taps KenWood & Associates as Accountant
--------------------------------------------------------
Sourcewater, Inc. seeks approval from the U.S. Bankruptcy Court for
the Southern District of Texas to employ KenWood & Associates, P.C.
as accountant.
The firm's services include:
(i) preparation of monthly operating reports;
(ii) assistance with the preparation of budgets, balance sheets,
profit and loss statements, and statements of cash flow; and
(ii) general tax advice.
The firm's hourly rates are as follows:
David E. Bott, CPA $335 per hour
Deborah J. Abbott, CPA $230 per hour
Carolyn Crabtree, CPA $160 per hour
Christopher W. Hale, CPA $175 per hour
Sandra Y. Salamanca, CPA $130 per hour
David Bott, the firm's accountant 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 at:
David E. Bott, CPA
KenWood & Associates, P.C.
14090 Southwest Freeway, Suite 200
Sugar Land, TX 77478
Tel.: 281-243-2300
Fax: 281-243-2326
Email: debott@kenwoodpc.com
About Sourcewater Inc.
Sourcewater, Inc. is a Houston-based company that gathers, analyzes
and visualizes surface and subsurface energy and water activity. It
conducts business under the name Sourcenergy.
Sourcewater sought protection under Subchapter V of Chapter 11 of
the U.S. Bankruptcy Code (Bankr. S.D. Texas Case No.23-30960) on
March 17, 2023, with up to $1 million in assets and up to $10
million in liabilities. Thomas A. Howley has been appointed as
Subchapter V trustee.
Judge Jeffrey P. Norman oversees the case.
Jarrod B. Martin, Esq., at Chamberlain, Hrdlicka, White, Williams,
& Aughtry, P.C., is the Debtor's legal counsel.
STOWERS TRUCKING: Unsecureds Will Get 5% of Claims in Plan
----------------------------------------------------------
Stowers Trucking, LLC filed with the U.S. Bankruptcy Court for the
Southern District of West Virginia a Disclosure Statement
describing Chapter 11 Plan dated April 30, 2023.
The Debtor is a corporation. Since March 7, 1997, the Debtor has
been in the business of owning and operating trucks and equipment
ancillary to the mining industry.
In 2017, Stowers Trucking entered into an agreement with KSW
Environmental and KSW Solids Control to whereby Stowers Trucking,
LLC acquired several excavators and leased them to those companies.
The excavators were purchased through Komatsu Financial Limited
Partnership.
That a dispute then rose with Komatsu which resulted in litigation
in both the Circuit Court of Lincoln County (21-C-30) and the U.S.
District Court (2:21-cv-00336). Unfortunately, between the breach
of that contract by KSW, and the environment in the trucking
industry, and the onset of Covid, Stowers Trucking was forced to
file for protection under Chapter 11 and commenced this
proceeding.
Class 5 consists of General Unsecured Claims. The total claims in
this Class is $591,469.08 and these claims will be paid 5% of the
amount of their claim pro-rata commencing on August 1, 2024 in four
equal monthly installments of $7,393.37.
The Plan will be implemented by payments and distributions from
sale of assets of the Debtor and the sell of certain properties
pursuant to Section 363(f) of the Bankruptcy Code. The Debtor
anticipates several consignment sales through Trucks, Inc. and an
auction sale of the Komatsu excavators.
Once these sales are complete, the Greg Stowers anticipates
purchasing all remaining assets at the price assigned on the
schedules through his solely held company. It is anticipated that
the sale of all assets of the company will not be sufficient to pay
the Trust Tax claim, in which case Greg Stowers will contribute
sufficient additional monies to pay the Trust Tax obligations in
Class 2-A in full.
A full-text copy of the Disclosure Statement dated April 30, 2023
is available at https://bit.ly/44lMw73 from PacerMonitor.com at no
charge.
Debtor's Counsel:
James M. Pierson, Esq.
Pierson Legal Services
P.O. Box 2291
Charleston, WV 25328
Tel: (304) 925-2400
Email: jpierson@piersonlegal.com
About Stowers Trucking
Stowers Trucking LLC has been in the business of owning and
operating trucks and equipment ancillary to the mining industry.
The Debtor filed a Chapter 11 bankruptcy petition (Bankr. S.D. W.
Va. Case No. 22-20125) on July 7, 2022, with up to $500,000 in both
assets and liabilities. Judge B. Mckay Mignault oversees the case.
James M. Pierson, Esq., at Pierson Legal Services is the Debtor's
legal counsel.
SVB FINANCIAL: Stuck in Bankruptcy Stalemate With FDIC
------------------------------------------------------
Amelia Pollard of Bloomberg Law reports that SVB Financial Group,
the former parent company of failed Silicon Valley Bank, is burning
through cash while it struggles to gain access to records it says
are necessary to move forward in bankruptcy. The firm is sparring
with the Federal Deposit Insurance Corp. over access to those
records -- things like minutes from board meetings -- as well as $2
billion the agency seized after the bank failed in March 2023.
About SVB Financial Group
SVB Financial Group is a financial services company focusing on the
innovation economy, offering financial products and services to
clients across the United States and in key international markets.
Prior to March 10, 2023, SVB Financial Group owned and operated
Silicon Valley Bank, a state-chartered bank. During the week of
March 6, 2023, Silicon Valley Bank, Santa Clara, CA, experienced a
severe "run-on-the-bank." On the morning of March 10, the
California Department of Financial Protection and Innovation seized
SVB and placed it under the receivership of the Federal Deposit
Insurance Corporation. SVB was the nation's 16th largest bank and
the biggest to fail since the 2008 financial meltdown.
On March 17, 2023, SVB Financial Group sought Chapter 11 bankruptcy
protection (Bankr. S.D.N.Y. Case No. 23-10367). The Debtor had
assets of $19,679,000,000 and liabilities of $3,675,000,000 as of
Dec. 31, 2022.
The Hon. Martin Glenn is the bankruptcy judge.
The Debtor tapped Sullivan & Cromwell, LLP as bankruptcy counsel;
Centerview Partners, LLC as investment banker; and Alvarez & Marsal
North America, LLC as restructuring advisor. William Kosturos, a
partner at Alvarez & Marsal, serves as the Debtor's chief
restructuring officer. Kroll Restructuring Administration, LLC, is
the claims and noticing agent and administrative advisor.
SYNEOS HEALTH: Moody's Affirms Ba2 CFR & Alters Outlook to Negative
-------------------------------------------------------------------
Moody's Investors Service revised Syneos Health, Inc.'s outlook to
negative from stable. At the same time, Moody's affirmed all other
ratings including the Ba2 corporate family rating, the Ba2-PD
probability of default rating, the Ba2 senior secured bank credit
facility rating and the B1 senior unsecured note rating. There was
no change to Syneos' SGL-1 speculative grade liquidity rating.
The change in outlook to negative reflects Moody's expectation that
over the next twelve months Syneos will experience revenue declines
in high single-digits, along with profitability declining in
high-teens. These headwinds are driven by cancellations and delays
in customer award decisions and softness in request for proposal
flow from large, as well as small and medium pharmaceutical
customers in its clinical solutions business. Moody's also expects
softness in demand for the company's commercial solutions business.
Moody's believes these challenges will have a meaningful impact on
company's credit metrics over the next 12-18 months.
The affirmation of Ba2 CFR reflects Moody's view that despite
expected operational weakness in 2023, Syneos will sustain
debt/EBITDA below 4.5 times, along with good liquidity.
Additionally, Moody's anticipates that the company will maintain
conservative financial policies, over the next 12-18 months.
Affirmations:
Issuer: Syneos Health, Inc.
Corporate Family Rating, Affirmed Ba2
Probability of Default Rating, Affirmed Ba2-PD
Senior Secured 1st Lien Revolving Credit Facility, Affirmed Ba2
Senior Secured 1st Lien Term Loan A, Affirmed Ba2
Senior Unsecured Notes, Affirmed B1
Outlook Actions:
Issuer: Syneos Health, Inc.
Outlook, Changed To Negative From Stable
RATINGS RATIONALE
Syneos' Ba2 Corporate Family Rating reflects the company's
considerable size, geographic footprint, and established market
positions as both a pharmaceutical contract research organization
(CRO) and provider of commercialization services. The ratings are
also supported by the company's very good liquidity, including
meaningful free cash flows. The ratings reflect Syneos' moderate
financial leverage with adjusted debt/EBITDA of 3.7x, as of
December 31, 2022. However, Moody's expects headwinds in
operational performance will result in weakening of company's
credit metrics, over the next year. Syneos' credit profile also
encompasses the risks inherent in the pharmaceutical services
industry, including project delays and cancellations.
The SGL-1 Speculative Grade Liquidity Rating reflects Moody's
expectation that Syneos will maintain very good liquidity over the
next 12 months. Liquidity is supported by cash of approximately
$112 million as of December 31, 2022, as well as Moody's
expectation that Syneos will generate meaningful free cash flow of
over $200 million over the next 12 months. Syneos' liquidity is
further supported by roughly $865 million of availability under the
company's upsized $1.0 billion revolving credit facility expiring
in November 2027. The credit agreement contains a 4.5x maximum
first lien leverage ratio. Moody's anticipates that Syneos will
maintain ample cushion under the covenant.
The first lien senior secured bank credit facilities are rated Ba2,
in line with the Corporate Family Rating. Although there is a layer
of loss absorption provided by $600 million of unsecured notes due
2029, which are rated B1, the presence of a $550 million accounts
receivable securitization facility limits the degree of up-notching
on the senior secured credit facilities. Syneos' use of the
securitized receivables facility has grown over time, and reduces
the value of the collateral securing the credit facilities, which
includes receivables not securitized through the receivables
facility.
Syneos' CIS-3 indicates that ESG considerations have a limited
impact on the credit rating with potential for greater negative
impact over time. Social risk considerations relate to
pharmaceutical drug pricing, which could have both positive and
negative effects for Syneos. Drug pricing pressure in the US may
spur the need for Syneos' customers to invest more heavily in R&D,
which would be a benefit. However, legislation that reduce drug
prices such as the recently passed US Inflation Reduction Act could
also have a negative impact on Syneos if pharmaceutical customers
look to trim expenses or reduce the scope of existing projects.
Additionally, large mergers could result in customer
consolidation/pricing pressure. Governance risk considerations
include Syneos' appetite for share repurchases and debt-financed
acquisitions including those that bring execution risk. This is
partly mitigated by progress to date at deleveraging, partially
through voluntary repayment of debt.
The negative rating outlook reflects Moody's expectation that
Syneos will experience revenue declines in high single-digits,
along with profitability declining in mid-teens, driven by ongoing
softness in its clinical solutions business. However, despite
operational headwinds Moody's expects Syneos will sustain
debt/EBITDA below 4.5 times, along with good liquidity.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Moody's could upgrade the ratings if Syneos demonstrates
improvement in its book-to-bill ratio along with consistent revenue
growth, stable profit margins and strong liquidity. Quantitatively,
ratings could be upgraded if adjusted debt to EBITDA is sustained
below 3.5 times.
Moody's could downgrade Syneos' ratings if company's book-to-bill
ratio experiences further declines such that operating performance
significantly weakens, or liquidity deteriorates. Ratings could
also be downgraded if the company executes material debt-funded
acquisitions or shareholder distributions, resulting in debt to
EBITDA sustained above 4.5 times.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
Syneos Health, Inc., headquartered in Morrisville, North Carolina,
is a leading global fully integrated biopharmaceutical solutions
organization providing outsourced clinical development, medical
affairs and commercial services for pharmaceutical and
biotechnology companies. Syneos Health, Inc.'s main area of focus
is late-stage clinical trials. The company reported revenues of
approximately $5.4 billion for the fiscal year ended December 31,
2022.
TALKING TADPOLES: Seeks Cash Collateral Access
----------------------------------------------
Taking Tadpoles, LLC asks the U.S. Bankruptcy Court for the
Northern District of Texas, Fort Worth Division, for authority to
use cash collateral in accordance with the budget, with a 5%
variance.
The Debtor depends on the use of cash collateral for continuing
education, software, contract services, payroll, leases and general
operating expenses.
The Debtor produces revenue from its pediatric therapy business and
would use the revenue to pay the budgeted expenses. Moreover, the
revenue will be deposited by Debtor in its DIP operating account
pending entry of an order allowing use of cash collateral or
consent by lien holders.
A search in the Texas Secretary of State shows that allegedly
secured positions are held by The American National Bank of Texas;
OnDeck Company; and CFS CAP, LLC (aka Cash Fund).
The loans are allegedly secured by a blanket lien on all accounts
and property of the Debtors' businesses, pursuant to the filed UCC
liens that have been filed. At this early stage, it is unclear as
to whether these agreements are secured or comply with Texas or
other state usury laws, but for the purposes of the motion only,
the Debtor is acknowledging their UCC filings.
The Debtor proposes that as adequate protection for the use of cash
collateral, the creditors will be granted replacement liens on all
post-petition cash collateral and post-petition acquired property
to the same extent and priority they possessed as of the Petition
Date. A judicial determination that a lien is avoidable or invalid
unwinds any replacement lien created by the order.
The Debtor proposes that there will be a carve-out for fees payable
under 28 U.S.C. section 1930; and professional fees and expenses in
the approved budgeted amounts; and fees and expenses for the
Subchapter V Trustee.
A copy of the order is available at https://bit.ly/44dhdvd from
PacerMonitor.com.
A copy of the budget is available at https://bit.ly/3LHlIqE from
PacerMonitor.com.
The Debtor projects $410,000 in cash receipts and $371,478 in cash
disbursements.
About Taking Tadpoles, LLC
Taking Tadpoles, LLC operates a pediatric therapy practice that
offers a full range of services for communication, feeding,
sensory, and fine motor difficulties for children birth through 21
years of age.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Tex. Case No. 23-41165) on April 26,
2023. In the petition signed by Julissa Irachet, executive
director, the Debtor disclosed up to $500,000 in assets and up to
$1 million in liabilities.
Robert C. Lane, Esq., at Lane Law Firm, represents the Debtor as
legal counsel.
TAMPA HYDE: Unsecureds Will Get 100% of Claims in 36 Months
-----------------------------------------------------------
Tampa Hyde Park Cafe Properties, LLC, filed with the U.S.
Bankruptcy Court for the Middle District of Florida a Disclosure
Statement describing Chapter 11 Plan of Reorganization dated May 1,
2023.
The Debtor's revenue is primarily derived from the lease or
sublease of the property located at 1802-1806 W. Platt Street,
Tampa, Florida 33606 ("Property"), and the operation of Hyde Park
Cafe at the Property, which is one of the longest running nightlife
venues in Tampa.
The Debtor has substantial tax claims which the Debtor needs to pay
over time under applicable provisions of the Bankruptcy Code. As
well, real property previously owned by the Debtor, and upon which
the Debtor is a co-tenant under a lease agreement and co-landlord
under a sublease agreement, was scheduled to be sold at a
foreclosure sale, and the Debtor did not have the cash required to
stop the foreclosure sale.
The Debtor's principal assets are its properties, leases,
subleases, and claims and causes of action against third parties.
The Debtor exercised an Option to purchase real property from BAMC
and an Option to purchase real property from 308 S. Fremont, LLC.
Unsecured creditors are treated in Classes 7 (general unsecured
claims) and 8 (unsecured convenience claims). Holders of allowed
Class 7 general unsecured claims will receive a distribution of
100% of the allowed amount of such claim payable in 36 monthly
installments, without interest. Holders of allowed Class 8
unsecured convenience claims (including holders of allowed general
unsecured claims who elect to reduce their claim to $1,000.00) will
receive a distribution of 100% of the allowed amount of such claim
within 30 days of the Effective Date.
Class 7 consists of General Unsecured Claims. The Debtor intends to
object to the claim of Bank of Tampa. In fact, it is undisputed
that Bank of Tampa owes money to the Debtor. The holders of other
claims in this class will receive installment payments of an amount
equal to 100% of the allowed amount of such holder's claim, in 36
equal installments, without interest beginning on the first
business day of the month immediately after the Effective Date.
These Claims are impaired by this Plan.
Class 8 consists of Unsecured Convenience Claims. The holders of
claims in this class are holders of allowed unsecured claims equal
to $1,000.00 or less. The holder of any allowed general unsecured
claim may elect to reduce such claim to $1,000.00 and be treated in
this class. The holders of allowed claims in this class will
receive a one-time payment, on the day which falls 30 days after
the Effective Date, equal to 100% of the allowed amount of such
claim. Any holder of an allowed general unsecured claim who elects
to reduce such claim to $1,000.00 will be deemed to have voted to
accept the Plan. These Claims are impaired by this Plan.
Class 9 consists of Equity Interests of Peter Hannouche. The equity
interests of Peter Hannouche, and Christopher Scott, equal to a
100% interest each in the Debtor, shall be re-vested in full upon,
confirmation, in return for an equity contribution of 1/2 of the
amount necessary, in excess of cash available on the effective date
of the Plan, to fund the initial payments due under the Plan and
additionally new equity contributions necessary to pay 1/2 of the
payments due under the Plan (if revenue generated by the Debtor is
not sufficient), as new equity and new value for purposes of the
absolute priority rule.
The cash payments under this Plan have been and/or will be
generated from cash on hand on the Effective Date, revenue earned
from the Debtor's premises, leased premises, and subleased
premises, and new equity contributions from Peter Hannouche.
Additionally, if necessary the Debtor has the ability to obtain
financing on a liquor license owned by the Debtor valued at
approximately $350,000.00. In such event, the Debtor will file a
motion for approval of exit financing and, if necessary, the grant
of a priming lien.
A full-text copy of the Disclosure Statement dated May 1, 2023 is
available at https://bit.ly/410sPPi from PacerMonitor.com at no
charge.
Attorney for Debtor:
W. Bart Meacham, Esq.
308 E. Plymouth St.
Tampa FL 33603
Tel: (813) 223-6334
Fax: (813) 425-6969
Email: wbartmeacham@yahoo.com
About Tampa Hyde Park Cafe Properties
Tampa Hyde Park Cafe Properties, LLC, a company in Tampa Fla.,
filed a petition for relief under Subchapter V of Chapter 11 of the
Bankruptcy Code (Bankr. M.D. Fla. Case No. 23-00448) on Feb. 7,
2023, with $500,000 to $1 million in assets and $1 million to $10
million in liabilities. Ruediger Mueller has been appointed as
Subchapter V trustee.
Judge Caryl E. Delano oversees the case.
The Debtor is represented by W. Bart Meacham, Esq., a practicing
attorney in Tampa, Fla.
TENET HEALTHCARE: S&P Rates New $1.35BB Senior Secured Debt 'BB-'
-----------------------------------------------------------------
S&P Global Ratings assigned its 'BB-' issue-level rating and '2'
recovery rating to Tenet Healthcare Corp.'s proposed $1.35 billion
senior secured first-lien notes due 2031. The '2' recovery rating
indicates our expectation for substantial (70%-90%; rounded
estimate: 70%) recovery in the event of a payment default. S&P
expects the company to use the proceeds and cash on hand to redeem
all of its 4.625% senior secured first-lien notes due July 2024 and
all of its 4.625% notes due September 2024. The transaction is
leverage neutral. S&P's other ratings, including its 'B+' issuer
credit rating, are unchanged.
S&P said, "Our ratings on Tenet reflect its meaningful scale as a
large health system, its solid market positions in its core
markets, and the diversity provided by its growing ambulatory care
segment. Labor pressures have been challenging industrywide, but
the company noted that contract labor costs moderated in
first-quarter 2023. The company initiated a share repurchase
program, and we expect it will spend approximately $250 million on
acquisitions in 2023 and 2024. Still, we expect leverage will
remain 5x-6x."
TRUCK DYNASTY: Files Emergency Bid to Use Cash Collateral
---------------------------------------------------------
Truck Dynasty Transportation, Inc. asks the U.S. Bankruptcy Court
for the Northern District of Mississippi for authority to, among
other thigs, use cash collateral and provide adequate protection.
The Debtor requires the use of cash collateral to fund its
operations.
Prior to the Petition Date, the Debtor and TBS Factoring Service
LLC entered into the Accounts Receivable Purchase and Security
Agreement Terms and Conditions, pursuant to which TBS holds a valid
and perfected security interest in various assets of the Debtor by
virtue of a filed UCC-1 filed of record on September 12, 2017. The
Debtor is indebted to TBS in the approximate amount of $209,634.
TBS holds a security interest in all the Debtor's accounts,
accounts receivable, rents and various invoices on all account
receivables.
The Debtor and TBS entered into the Prepetition Factoring Agreement
dated June 15, 2020 pursuant to which the Original Lender agreed to
purchase certain account receivables on which the Debtor owes an
aggregate principal amount of $243,704 to fund the operating costs
of the Debtor. To evidence the loan, the Debtor executed an
Accounts Receivable Purchase and Security Agreement and UCC-1 filed
June 28, 2019 in order to secure the obligations of the Debtor.
The Debtor filed on April 14, 2023, but TBS did not receive notice
of filing until April 20 and between the Petition Date and April
20, TBS continued to purchase Accounts from the Debtor pursuant to
the Pre-Petition Factoring Agreement and collect Accounts that it
had purchased and apply the proceed of the Accounts to the Debtor's
obligations to TBS under the Prepetition Factoring Agreement. Once
TBS learned of filing it ceased purchasing Accounts from the Debtor
and has held all collections it received after April 20, 2023, in
suspense. TBS purchased Accounts from the Debtor in good faith and
collected itself in a reasonable manner in providing factoring
services to the Debtor. TBS and the Debtor are asking for
retroactive relief from the Court, effective upon the Petition
Date, as if this had been in place at the inception of the Case.
The Debtor asserts there may be secondary liens on cash collateral,
but such liens are filed after the lien of TBS and will be
subordinate liens. The Creditors are believed to be Auxillor
Capital Products, Inc. and U.S. Small Business Administration.
The Debtor believes the total value of purchased account
receivables protects the interest of TBS as adequate protection.
The Debtor proposes to use cash collateral on an interim basis in
accordance with the terms of the proposed budget which will be
filed separately with the Court. The Debtor may increase, without
TBS's prior consent, any budgeted disbursement line item related to
ordinary operating expense by an amount not to exceed 10% of the
amount reflected in the budget for such monthly budgeted
disbursement line item. The Debtor requests that the Court
authorize the payment of U.S. Trustee fees and approved
compensation for attorney for the Debtor up to $25,000 in approved
fees and expenses as necessary administrative costs to be paid
pursuant to the Order.
A copy of the motion is available at https://bit.ly/3LPoD0F from
PacerMonitor.com.
About Truck Dynasty Transportation Inc.
Truck Dynasty Transportation Inc. operates a trucking/
transportation company. The Debtor sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. N.D. Miss. Case No.
23-11142) on April 14, 2023. In the petition signed by Bradley
Little, its president, the Debtor disclosed up to $50,000 in assets
and up to $10 million in liabilities.
Toni Campbell Parker, Esq., at the Law Firm of Toni Campbell
Parker, represents the Debtor as legal counsel.
TUESDAY MORNING: Moves to Liquidating More Stores
-------------------------------------------------
Akiko Matsuda of The Wall Street Journal reports that home-goods
retailer Tuesday Morning Corp. is moving toward a liquidation of
additional store locations following a bankruptcy auction for the
company's remaining assets.
If a Hilco Global unit closes on its bid for Tuesday Morning, the
Dallas-based retailer will be liquidated, its senior vice president
of finance, Dell Young, testified in bankruptcy court. Tuesday
Morning has selected Hilco as the successful bidder for more than
200 store locations that weren't already designated as going out of
business.
About Tuesday Morning
Dallas, Texas-based Tuesday Morning Corporation is an off-price
retailer specializing in products for the home, including upscale
home textiles, home furnishings, housewares, gourmet food, toys and
seasonal decor, at prices generally below those found in boutique,
specialty and department stores, catalogs and on-line retailers.
Tuesday Morning and several affiliates filed for Chapter 11
bankruptcy protection (Bankr. N.D. Texas Lead Case No. 23-90001) on
Feb. 14, 2023. The Debtors said both assets and liabilities, on a
consolidated basis, range from $100 million to $500 million.
Judge Edward L. Morris presides over the cases.
The Debtors tapped Munsch Hardt Kopf & Harr, P.C. as bankruptcy
counsel; Phelanlaw as special counsel; Force Ten Partners LLC as
financial advisor; and Piper Sandler & Co. as investment banker.
Stretto, Inc. is the claims and noticing agent.
The U.S. Trustee for Region 6 appointed an official committee to
represent unsecured creditors in the Debtors Chapter 11 cases. The
committee is represented by the law firms of Fox Rothschild, LLP
and Lowenstein Sandler, LLP. Province, LLC serves as the
committee's financial advisor.
TUESDAY MORNING: Urged by Judge to Resolve Issues With Lender
-------------------------------------------------------------
Rick Archer and Vince Sullivan of Law360 reports that a Texas
bankruptcy judge urged bankrupt retail chain Tuesday Morning Corp.
to continue discussions with its Chapter 11 lender Monday, April
24, 2023, to try to come up with a deal on the debtor's request for
funding under the bankruptcy loan in an effort to avoid continued
"warfare" in the case.
About Tuesday Morning
Dallas, Texas-based Tuesday Morning Corporation is an off-price
retailer specializing in products for the home, including upscale
home textiles, home furnishings, housewares, gourmet food, toys
and
seasonal decor, at prices generally below those found in boutique,
specialty and department stores, catalogs and on-line retailers.
Tuesday Morning and several affiliates filed for Chapter 11
bankruptcy protection (Bankr. N.D. Texas Lead Case No. 23-90001)
on
Feb. 14, 2023. The Debtors said both assets and liabilities, on a
consolidated basis, range from $100 million to $500 million.
Judge Edward L. Morris presides over the cases.
The Debtors tapped Munsch Hardt Kopf & Harr, P.C. as bankruptcy
counsel; Phelanlaw as special counsel; Force Ten Partners LLC as
financial advisor; and Piper Sandler & Co. as investment banker.
Stretto, Inc. is the claims and noticing agent.
The U.S. Trustee for Region 6 appointed an official committee to
represent unsecured creditors in the Debtors Chapter 11 cases. The
committee is represented by the law firms of Fox Rothschild, LLP
and Lowenstein Sandler, LLP. Province, LLC serves as the
committee's financial advisor.
TURBO COMPONENTS: Seeks Cash Collateral Access
----------------------------------------------
Turbo Components, Inc. asks the U.S. Bankruptcy Court for the
Western District of Michigan for authority to use cash collateral
and provide adequate protection.
The Debtor requires the use of cash collateral to sustain its
operations and preserve its assets for the benefit of the estate
and the creditors.
The Debtor's secured creditors are Comerica Bank, Grow Michigan,
LLC, and BorgWarner Turbo Systems, LLC.
As of Petition Date, the Debtor is indebted to Comerica Bank in the
amount of $1.105 million.
The Debtor has entered into a loan and security agreement with Grow
Michigan, as subordinated to senior lender Comerica Bank, with a
balance remaining in the amount of $863,087. This obligation is
junior to the Comerica Bank's secured obligation and there is
limited equity, if any, to which the obligation may attach.
The Debtor has entered into mortgage, loan, and security agreement
documents with BorgWarner. The Debtor's current obligation to
BorgWarner is $593,387. To secure this obligation, BorgWarner holds
a second position mortgage on the Machine Shop -- junior to
Comerica Bank -- and an all asset lien on the personal property of
the Debtor. BorgWarner also has a second position mortgage on the
Foundry real estate, owned by non-debtor entity TNB, LLC.
As adequate protection for the use of cash collateral, the Debtor
offers the following under 11 U.S.C. 361 and 363 concerning any
diminution in pre-petition collateral:
-- Comerica Bank will retain its security interest and liens
on all assets in its current rank, order, and priority. The Debtor
grants Comerica Bank a replacement lien and security interest in
all post petition assets of the Debtor of the same type, category,
and priority constituting each secured creditor's pre-petition
collateral. Comerica Bank is adequately protected if it retains all
of its security interests in post-petition assets. Comerica Bank
will be further entitled to receive ongoing monthly interest
payments in the amount of $11,000 for the month of May 2023, and
continuing each month until the Subchapter V Chapter 11 Plan is
confirmed.
-- Grow Michigan will retain its security interest and lien on
all assets in its current rank, order, and priority. The Debtor
grants Grow Michigan a replacement lien and security interest in
all post petition assets of the Debtor of the same type, category,
and priority constituting each secured creditor's pre-petition
collateral. Grow Michigan is adequately protected if it retains all
of its security interests in postpetition assets. Grow Michigan
will be further entitled to receive ongoing monthly interest
payments in the amount of $650 for the month of May 2023, and
continuing each month until the Subchapter V Chapter 11 Plan is
confirmed.
-- BorgWarner will retain its security interest and lien on
all assets in its current rank, order, and priority. The Debtor
grants BorgWarner a replacement lien and security interest in all
post petition assets of the Debtor of the same type, category, and
priority constituting each secured creditor's pre-petition
collateral. BorgWarner is adequately protected if it retains all of
its security interests in post-petition assets.
A copy of the motion is available at https://bit.ly/3oZjNEX from
PacerMonitor.com.
About Turbo Components, Inc.
Turbo Components, Inc. conducts business for the express purpose of
producing and supplying casted and machined aluminum parts,
prototypes, tooling production, sand castings, and the production
of sand casting molds, primarily related to the agricultural
industry.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Mich. Case No. 23-01005) on April 28,
2023. In the petition signed by Brad Fortenbacher, president, the
Debtor disclosed $2,420,069 in assets and $4,647,278 in
liabilities.
Judge James W. Boyd oversees the case.
A. Todd Almassian, Esq., at Keller and Almassian, PLC, represents
the Debtor as legal counsel.
UBO-TECHNOLOGIES: Hits Chapter 11 Bankruptcy Protection
-------------------------------------------------------
Ashley Portero of South Florida Business Journal reports that Ubo
Technologies, a limited liability company connected to Waatr
founder and CEO Rakesh Guduru, filed for Chapter 11 bankruptcy
protection.
The Doral-based venture submitted its petition to the U.S.
Bankruptcy Court in Miami on April 13, 2023. The petition was
signed by Guduru.
Ubo Technologies has more than $2.5 million in liabilities and
$327,181 in assets, according to court documents. Its largest debts
are $641,465 owed to supplier Unique Industrial Product and a
$464,000 business loan from Cellular Nanomed, a California biotech
startup. Guduru is also listed as an unsecured creditor, with
$291,627 owed.
Chris Van Horn, an attorney representing Ubo Technologies, declined
to comment on the case. The company has not yet submitted a case
summary describing the circumstances surrounding the bankruptcy
petition.
Most of Ubo Technologies' assets consist of inventory, office
equipment and intellectual property. It also owns patents,
copyrights, trademarks and trade secrets related to Waatr, the
maker of a self-cleaning reusable water bottle with UV purifiers
and filters and CrazyCap, a portable cap that sterilizes water
bottles.
Founded in 2018, Waatr is headquartered in Miramar. The product
was featured on Time Magazine's list of 2020's best inventions and
received the 2022 German Innovation Award.
Guduru was part of the research faculty at Florida International
University from 2013 to 2016, according to his LinkedIn page. In
2018, he was part of a FIU research team that invented magnetic
battery technology used to quickly power and recharge devices.
About Ubo-Technologies
Ubo-Technologies LLC filed a petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 23-12848) on
April 13, 2023. In the petition filed by Rakesh Guduru, as
founder/CEO, the Debtor reported total assets of $327,181 and total
liabilities of $2,521,279.
The Honorable Bankruptcy Judge Laurel M Isicoff handles the case.
The Debtor is represented by:
Chad T. Van Horn, Esq.
10773 NW 58th St
# PMB 45
Doral, FL 33178-2801
Tel: (954) 765-3166
Email: chad@cvhlawgroup.com
UNIQUE FREIGHT LINES: Starts Subchapter V Bankruptcy Case
---------------------------------------------------------
Unique Freight Lines Inc. filed for chapter 11 protection in the
Southern District of Florida. The Debtor elected on its voluntary
petition to proceed under Subchapter V of chapter 11 of the
Bankruptcy Code.
The Debtor is a global logistics and freight forwarding company.
It operates at 8417 NW 201 Terrace, Hialeah, FL 33015, which is
leased.
The Debtor says it filed for Chapter 11 bankruptcy because it is
facing pending litigation on top of an overwhelming accumulation of
debt resulting from higher fuel prices and increased
industry-specific costs to keep its fleet active.
Gross income was $46.15 million in 2022 and just $2.434 million
year to date.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
May 18, 2023 at 12:00 p.m.
About Unique Freight Lines
Unique Freight Lines Inc. -- https://www.uniquefreightlines.com/ --
offers a complete range of international air and ocean freight
services as well as integrated warehousing solutions from a single
source supported by its strong management and network.
Unique Freight Lines Inc. filed a petition for relief under
Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla.
Case No. 23-12916) on April 14, 2023.
In the petition filed by David Padron, Sr., as president, the
Debtor reported total assets of $15,330,317 and total liabilities
of $7,498,759. The petition states that funds will be available to
unsecured creditors.
The Honorable Bankruptcy Judge Robert A Mark handles the case.
Linda Marie Leali has been appointed as Subchapter V trustee.
The Debtor is represented by:
Timothy S Kingcade, Esq.
8417 NW 201 Terrace
Hialeah, FL 33015-5976
Tel: 305-285-9100
Email: scanner@miamibankruptcy.com
VBI VACCINES: Regains Compliance With Nasdaq Bid Price Requirement
------------------------------------------------------------------
VBI Vaccines Inc. received a letter from the Listing Qualifications
Department of the Nasdaq Stock Market stating that from April 12 to
25, 2023, the closing bid price of the Company's common shares had
been at or greater than $1.00 per share. Accordingly, the Company
has regained compliance with Nasdaq Listing Rule 5550(a)(2).
As previously reported, on July 1, 2022, the Company received a
letter from Nasdaq notifying the Company that its common shares
failed to maintain a minimum bid price of $1.00 over the previous
30 consecutive business days, and on Dec. 29, 2022, the Company
received a letter from Nasdaq notifying the Company that it had
been granted an additional 180-day period, or until June 26, 2023,
to regain compliance with the Minimum Bid Price Requirement.
Per the April 26, 2023 letter, the matter is now closed.
About VBI Vaccines
VBI Vaccines Inc. -- www.vbivaccines.com -- is a biopharmaceutical
company driven by immunology in the pursuit of powerful prevention
and treatment of disease. Through its innovative approach to
virus-like particles ("VLPs"), including a proprietary enveloped
VLP ("eVLP") platform technology, VBI develops vaccine candidates
that mimic the natural presentation of viruses, designed to elicit
the innate power of the human immune system. VBI is committed to
targeting and overcoming significant infectious diseases, including
hepatitis B, coronaviruses, and cytomegalovirus (CMV), as well as
aggressive cancers including glioblastoma (GBM). VBI is
headquartered in Cambridge, Massachusetts, with research operations
in Ottawa, Canada, and a research and manufacturing site in
Rehovot, Israel.
VBI Vaccines reported a net loss of $113.30 million for the year
ended Dec. 31, 2022, compared to a net loss of $69.75 million for
the year ended Dec. 31, 2021.
Iselin, New Jersey-based EisnerAmper LLP, the Company's auditor
since 2016, issued a "going concern" qualification in its report
dated March 13, 2023, citing that the Company faces several risks,
including but not limited to, uncertainties regarding the success
of the development and commercialization of its products, demand
and market acceptance of the Company's products, and reliance on
major customers. The Company anticipates that it will continue to
incur significant operating costs and losses in connection with the
development and commercialization of its products. The Company has
an accumulated deficit as of December 31, 2022 and cash outflows
from operating activities for the year-ended December 31, 2022 and,
as such, will require significant additional funds to conduct
clinical and non-clinical trials, commercially launch its products,
and achieve regulatory approvals that raise substantial doubt about
its ability to continue as a going concern.
VINTAGE WEST: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Vintage West, LLC
216 2nd Ave SW
Cullman, AL 35055
Business Description: Vintage West offers Chalk Paint Decorative
Paint by Annie Sloan. It is also a purveyor
of several other highly sought after home
goods and name brands including: Magnolia
Home by a Joanna Gaines, Norwalk furniture,
Sam Moore, Four Seasons, and Hooker
Furniture.
Chapter 11 Petition Date: May 3, 2023
Court: United States Bankruptcy Court
Northern District of Alabama
Case No.: 23-80809
Debtor's Counsel: Richard L. Collins, Esq.
RICHARD L. COLLINS ATTORNEY AT LAW
PO Box 669
Cullman, AL 35056
Tel: (256) 739-1962
Fax: (866) 528-9546
Email: richard@rlcollins.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Ron M. Roberson, Sr., as manager.
A copy of the Debtor's list of 20 largest unsecured creditors is
available for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/6IF2ANI/Vintage_West_LLC__alnbke-23-80809__0002.0.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/6OQDZYA/Vintage_West_LLC__alnbke-23-80809__0001.0.pdf?mcid=tGE4TAMA
VISTEON CORP: S&P Alters Outlook to Positive, Affirms 'BB-' ICR
---------------------------------------------------------------
S&P Global Ratings revised its outlook on Visteon Corp. to positive
from stable and affirmed its 'BB-' issuer credit rating.
The positive outlook reflects the potential for a higher rating
over the next 12 months if Visteon appears on track to sustain debt
to EBITDA below 3x and FOCF to debt well above 10% in 2024 and
beyond.
The positive outlook reflects stronger-than-anticipated operating
results the last few quarters and an expectation that Visteon will
sustain higher margins and free cash flow. S&P said, "Visteon's
sales, margins, and cash flow generation have been trending better
than we expected a couple of quarters ago, increasing the
likelihood of an upgrade within the next 12 months. Like other auto
suppliers, the company has navigated volatile production with
customers and elevated inflation, particularly for semiconductors.
We think Visteon has effectively managed these stresses by
improving its cost structure, mitigating inflated semiconductor
costs through recovery agreements with automakers, and in some
cases redesigning its technologies to function without certain
semiconductor components." Additionally, the company has
accelerated its growth above the market with new technologies of
higher-margin products such as digital cockpit clusters and its
SmartCore cockpit domain controller. The result has been improving
margins and cash flow.
S&P said, "Despite macroeconomic uncertainty, we expect leverage to
stay below 3x and remain cautiously optimistic the company can
generate FOCF to debt of at least 10% in 2023.Leverage at the end
of 2022 fell to 1.6x as Visteon benefited from stronger earnings
and a significant decrease in pension liability due to higher
discount rates. We expect modest margin improvement in 2023 as cost
recoveries are somewhat offset by investment in newer technologies
including wireless battery management. While free cash flow was
very strong in 2022, capital spending was modest at $81 million
(only 2% of revenues). In 2023, we expect capital spending to
increase to 3.5% of revenues to support more product launches and
new technologies for electric vehicles. We also believe there is
some risk and uncertainty with demand for cars in the second half,
particularly as interest rates remain high and vehicle
affordability has decreased. Still, we think Visteon should
generate free cash flow to debt of at least 10%, with room for
improvement in 2024."
Visteon's financial risk profile reflects lower leverage than
similarly rated auto suppliers. Its financial policy remains
conservative, maintaining high cash on balance sheet to offset
industry volatility. Visteon has found ample internal opportunities
to expand without the need for acquisitions in recent years. The
company did, however, recently initiate a $300 million share
buyback program. As volumes recover and volatility in automaker
production fades, the company could fund share buybacks with its
growing cash balance and FOCF.
The positive outlook reflects the potential for a higher rating
over the next 12 months if Visteon appears likely to sustain debt
to EBITDA below 3x and FOCF to debt well above 10% in 2024 and
beyond.
S&P could revise the outlook to stable within the next 12 months if
it expects a lack of progress in sustaining FOCF to debt above 10%.
This could be due to:
-- Longer and more protracted supply chain issues that slow a
recovery in sales expectations;
-- Longer or more protracted recession in its key geographies; or
-- A large acquisition.
S&P could raise its rating if the company:
-- Sustains debt to EBITDA below 3x and FOCF to debt well above
10%; or
-- Increases the size of its business significantly, expands
EBITDA margins sustainably into the low–teen percentages, and
diversifies its customer base, strengthening its competitive
position.
ESG credit indicators: E-2, S-2, G-2
S&P said, "ESG factors have an overall neutral influence on our
credit rating analysis on Visteon. We view most of Visteon's
products, such as displays and instrument clusters, as agnostic to
the type of engine propelling the vehicle."
WEWORK COS: S&P Cuts ICR to 'SD' Following Distressed Exchange
--------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on WeWork Cos.
LLC to 'SD' (selective default) from 'CC' and its issue-level
rating on its 7.875% senior unsecured notes due 2025 to 'D' from
'CC'.
S&P said, "The downgrade follows WeWork's completion of
transactions that we view as distressed and tantamount to a
default. The company announced that it concluded the exchange of
about $1,048 million of old notes--including about $507 million of
its 7.875% senior unsecured notes (75.8% of outstanding) and about
$541 million of its 5% senior unsecured notes (98.3% of
outstanding)--for new second-lien notes, new third-lien notes and
shares of class A common stock, among other transactions. The
company also received consent to eliminate substantially all the
restrictive covenants contained in the old notes, notably the $1.1
billion senior secured debt limitation in the 7.875% notes. In
addition, SoftBank converted $1.04 billion of its 5% senior
unsecured notes into equity at a discount to par and exchanged the
remaining $609.5 million of its 5% senior unsecured notes into new
debt and equity, at a discount to par.
"In our view, the exchange transactions are distressed and
tantamount to a default because we believe lenders will receive
less than originally promised given the principal amount of new
securities offered is less than the original par amount, the new
securities' maturities extend beyond the original, and the timing
of payments is slowed through the addition of a payment-in-kind
feature for more than half the interest on the proposed notes. In
our view, WeWork is pursuing this transaction because its capital
structure is unsustainable and the company has limited options to
reduce its debt burden and improve its cash flow organically.
"Nevertheless, the transaction decreased WeWork's debt by about
$1,468 million and extended its maturity wall from 2025 to 2027. We
acknowledge the transaction offers significant cash interest cost
savings and reduces leverage, which provides the company with
financial flexibility, increasing the possibility of eventually
reaching free cash flow generation. We intend to review our ratings
on WeWork, including our issuer credit and issue-level ratings, to
reflect the ongoing risk of a conventional default or future
distressed restructurings, and our forward-looking opinion of its
creditworthiness."
WeWork is a global workspace and office services provider
specializing in shared office space rentals to startups,
freelancers, small businesses, nonprofit organizations (52% of
total members as of end of 2021), and large enterprises (48%).
WeWork has an online member network to enable members to connect
and collaborate, as well as spaces for weekly events. WeWork
provides its 532,000-plus members (as of end of third-quarter 2022)
access to networking opportunities, health care plans, information
technology resources, accounting, legal support, social events, and
workshops. The U.S. and international business segments account for
approximately 45% and 55% of 2021 revenue, respectively.
[*] Two Hospital Bankruptcies From California in 2023
-----------------------------------------------------
Andrew Cass of Becker's Hospital CFO Report reports two hospitals
have filed for bankruptcy so far in 2023, and both are located in
California.
Madera (Calif.) Community Hospital filed for Chapter 11 bankruptcy
March 10. Madera Community officially closed at midnight Dec. 30,
2022 after Livonia, Mich.-based Trinity Health's plan to buy the
hospital fell through. Trinity already owns and operates Saint
Agnes Medical Center in Fresno, Calif.
Madera Community leaders had hoped to avoid bankruptcy and explored
a number of options, including looking for another organization to
take over operations. However, without a potential buyer coming
forward, the hospital moved ahead with the bankruptcy filing.
Montebello, Calif.-based Beverly Hospital filed for Chapter 11
bankruptcy April 19, 2023 as it hoped to pursue a buyer and avoid
closure.
The hospital had secured $13 million in financing to keep operating
as it searched for a buyer. Hospital officials said rising costs
outpacing government reimbursement rates were to blame for the
situation.
Beverly had unsuccessfully attempted to merge with three systems.
Hospital officials blamed the failed mergers on the review process
by the California attorney general.
A Kaufman Hall report released April 11, 2023 found that 20 percent
of California hospitals are at risk of closure. In 2022, total
expenses for California hospitals were $23.4 billion higher than
prepandemic levels and outpaced increases in revenue.
[^] Recent Small-Dollar & Individual Chapter 11 Filings
-------------------------------------------------------
In re Joseph DiNardo
Bankr. W.D.N.Y. Case No. 23-10316
Chapter 11 Petition filed April 10, 2023
represented by: Daniel Brown, Esq.
In re Tiffany T. A. Tanaka
Bankr. D. Hawaii Case No. 23-00271
Chapter 11 Petition filed April 17, 2023
represented by: Chuck Choi, Esq.
In re TTG Ventures, LLC, a Delaware Corp.
Bankr. C.D. Cal. Case No. 23-12489
Chapter 11 Petition filed April 24, 2023
See
https://www.pacermonitor.com/view/UHEYLCY/TTG_Ventures_LLC_a_Delaware_Corp__cacbke-23-12489__0001.0.pdf?mcid=tGE4TAMA
represented by: Leonard Pena, Esq.
PENA & SOMA, APC
E-mail: lpena@penalaw.com
In re Concrete Solutions & Supply
Bankr. C.D. Cal. Case No. 23-10314
Chapter 11 Petition filed April 25, 2023
See
https://www.pacermonitor.com/view/GMLI57A/Concrete_Solutions__Supply__cacbke-23-10314__0001.0.pdf?mcid=tGE4TAMA
represented by: Steven R. Fox, Esq.
THE FOX LAW CORPORATION INC.
E-mail: SRFox@foxlaw.com
In re Raza Dhanji
Bankr. M.D. Fla. Case No. 23-01538
Chapter 11 Petition filed April 25, 2023
represented by: Jeffrey Ainsworth, Esq.
In re Smith & Sons Trucking, LLC
Bankr. W.D. La. Case No. 23-30467
Chapter 11 Petition filed April 25, 2023
See
https://www.pacermonitor.com/view/K5AP3HY/Smith__Sons_Trucking_LLC__lawbke-23-30467__0001.0.pdf?mcid=tGE4TAMA
represented by: James W Spivey II, Esq.
JAMES W SPIVEY II
E-mail: office@jspiveylaw.com
In re Peggy Nestor
Bankr. S.D.N.Y. Case No. 23-10627
Chapter 11 Petition filed April 25, 2023
represented by: Anne Penachio, Esq.
In re James R. Matthews and Elaine A. Matthews
Bankr. E.D. Wash. Case No. 23-00493
Chapter 11 Petition filed April 25, 2023
represented by: Dan ORourke, Esq.
SOUTHWELL & O'ROURKE, P.S.
In re Derek Mateos and Marynes T Mateos
Bankr. M.D. Fla. Case No. 23-01644
Chapter 11 Petition filed April 26, 2023
represented by: John Yant, Esq.
In re Our Community Wellness & Compassionate Care Center,
Incorporated
Bankr. D. Md. Case No. 23-12874
Chapter 11 Petition filed April 26, 2023
See
https://www.pacermonitor.com/view/O7IREXI/Our_Community_Wellness__Compassionate__mdbke-23-12874__0001.0.pdf?mcid=tGE4TAMA
represented by: Donald L. Bell, Esq.
LAW OFFICE OF DONALD L. BELL
E-mail: donbellaw@gmail.com
In re Dawson Coleman Jr.
Bankr. E.D.N.Y. Case No. 23-41422
Chapter 11 Petition filed April 26, 2023
In re Grayson Unlimited, LLC
Bankr. W.D.N.Y. Case No. 23-10380
Chapter 11 Petition filed April 26, 2023
See
https://www.pacermonitor.com/view/I7UZLUA/Grayson_Unlimited_LLC__nywbke-23-10380__0001.0.pdf?mcid=tGE4TAMA
represented by: Matthew A. Lazroe, Esq.
LAW OFFICE OF MATTHEW A. LAZROE
E-mail: Matthew@LazroeLaw.com
In re Talking Tadpoles, LLC
Bankr. N.D. Tex. Case No. 23-41165
Chapter 11 Petition filed April 26, 2023
See
https://www.pacermonitor.com/view/ZTK5TLQ/Talking_Tadpoles_LLC__txnbke-23-41165__0001.0.pdf?mcid=tGE4TAMA
represented by: Robert C. Lane, Esq.
THE LANE LAW FIRM
E-mail: notifications@lanelaw.com
In re Malinki Slonik, LLC
Bankr. S.D. Fla. Case No. 23-13235
Chapter 11 Petition filed April 27, 2023
See
https://www.pacermonitor.com/view/X7SDQLY/Malinki_Slonik_LLC__flsbke-23-13235__0001.0.pdf?mcid=tGE4TAMA
represented by: Joel Aresty, Esq.
JOEL M. ARESTY PA
E-mail: aresty@icloud.com
In re Three Nickels, LLC
Bankr. E.D.N.Y. Case No. 23-41456
Chapter 11 Petition filed April 27, 2023
See
https://www.pacermonitor.com/view/WKVO7IQ/Three_Nickels_LLC__nyebke-23-41456__0001.0.pdf?mcid=tGE4TAMA
represented by: Douglas Pick, Esq.
PICK & ZABICKI LLP
E-mail: dpick@picklaw.net
In re Protech Metals, LLC
Bankr. M.D.N.C. Case No. 23-80078
Chapter 11 Petition filed April 27, 2023
See
https://www.pacermonitor.com/view/3JM2Z2Y/Protech_Metals_LLC__ncmbke-23-80078__0001.0.pdf?mcid=tGE4TAMA
represented by: Erik M. Harvey, Esq.
BENNETT GUTHRIE PLLC
In re Michael James Schouten
Bankr. N.D. Tex. Case No. 23-20078
Chapter 11 Petition filed April 27, 2023
represented by: Eric Liepins, Esq.
In re Envy Me Weight Loss Lasers and More
Bankr. S.D. Tex. Case No. 23-31511
Chapter 11 Petition filed April 27, 2023
See
https://www.pacermonitor.com/view/EUWL3QQ/Envy_Me_Weight_Loss_Lasers_and__txsbke-23-31511__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Jeffrey S. Beier
Bankr. C.D. Cal. Case No. 23-10898
Chapter 11 Petition filed April 28, 2023
represented by: Anerio Altman, Esq.
In re Robert Dwight Winter, Jr.
Bankr. C.D. Cal. Case No. 23-12637
Chapter 11 Petition filed April 28, 2023
represented by: Leslie Cohen, Esq.
In re Gene L. Krishingner Jr., M.D. P.A.
Bankr. M.D. Fla. Case No. 23-01631
Chapter 11 Petition filed April 28, 2023
See
https://www.pacermonitor.com/view/EUNZ2BY/Gene_L_Krishingner_Jr_MD_PA__flmbke-23-01631__0001.0.pdf?mcid=tGE4TAMA
represented by: Daniel A. Velasquez, Esq.
LATHAM LUNA EDEN & BEAUDINE LLP
E-mail: dvelasquez@lathamluna.com
In re Sean Angelini
Bankr. D.N.J. Case No. 23-13677
Chapter 11 Petition filed April 28, 2023
represented by: Angela Mastrangelo, Esq.
BIELLI & KLAUDER, LLC
In re Connected Fertility Monitoring PLLC
Bankr. W.D.N.C. Case No. 23-30287
Chapter 11 Petition filed April 28, 2023
See
https://www.pacermonitor.com/view/PFTKOOI/Connected_Fertility_Monitoring__ncwbke-23-30287__0001.0.pdf?mcid=tGE4TAMA
represented by: Richard S. Wright, Esq.
MOON WRIGHT & HOUSTON, PLLC
E-mail: rwright@mwhattorneys.com
In re Aloysius N. Fobi
Bankr. D. Ore. Case No. 23-30948
Chapter 11 Petition filed April 28, 2023
represented by: Michael O'Brien, Esq.
In re Norris Ventures, LLC
Bankr. W.D. Pa. Case No. 23-20939
Chapter 11 Petition filed April 28, 2023
See
https://www.pacermonitor.com/view/RSCJ2YY/Norris_Ventures_LLC__pawbke-23-20939__0001.0.pdf?mcid=tGE4TAMA
represented by: Brian C. Thompson, Esq.
THOMPSON LAW GROUP, P.C.
E-mail: bthompson@thompsonattorney.com
In re Alamo City Handymen LLC
Bankr. W.D. Tex. Case No. 23-50506
Chapter 11 Petition filed April 28, 2023
See
https://www.pacermonitor.com/view/PDUCHUY/Alamo_City_Handymen_LLC__txwbke-23-50506__0001.0.pdf?mcid=tGE4TAMA
represented by: Morris E. "Trey" White III, Esq.
VILLA & WHITE LLP
E-mail: treywhite@villawhite.com
In re La Belle France LLC
Bankr. W.D. Wash. Case No. 23-10781
Chapter 11 Petition filed April 28, 2023
See
https://www.pacermonitor.com/view/KA5IQGI/La_Belle_France_LLC__wawbke-23-10781__0001.0.pdf?mcid=tGE4TAMA
represented by: Thomas D. Neeleman, Esq.
NEELEMAN LAW GROUP, P.C.
E-mail: courtmail@expresslaw.com
In re SB Starlight Property LLC
Bankr. S.D. Fla. Case No. 23-13435
Chapter 11 Petition filed April 30, 2023
See
https://www.pacermonitor.com/view/SHBF2BI/SB_Starlight_Property_LLC__flsbke-23-13435__0001.0.pdf?mcid=tGE4TAMA
represented by: Peter Spindel, Esq.
PETER SPINDEL, ESQ., P.A.
E-mail: peterspindel@gmail.com
In re Jugjit Singh Johal
Bankr. E.D. Cal. Case No. 23-21430
Chapter 11 Petition filed May 1, 2023
In re Sara-Lou Elizabeth Reese
Bankr. S.D. Fla. Case No. 23-13460
Chapter 11 Petition filed May 1, 2023
represented by: David Langley, Esq.
In re Vicky Jasmine Marsh
Bankr. S.D. Fla. Case No. 23-13461
Chapter 11 Petition filed May 1, 2023
represented by: Susan Lasky, Esq.
In re Jeffrey Jonap
Bankr. N.D. Ga. Case No. 23-54065
Chapter 11 Petition filed May 1, 2023
represented by: Ian Falcone, Esq.
In re Eric Feintuch
Bankr. E.D.N.Y. Case No. 23-71517
Chapter 11 Petition filed May 1, 2023
represented by: Anthony Giuliano, Esq.
In re Seneca Management Partners, LLC
Bankr. W.D.N.Y. Case No. 23-20196
Chapter 11 Petition filed May 1, 2023
See
https://www.pacermonitor.com/view/46Z554A/Seneca_Management_Partners_LLC__nywbke-23-20196__0002.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Michael Gary Gaglione and Grace E. Gaglione
Bankr. E.D.N.C. Case No. 23-01184
Chapter 11 Petition filed May 1, 2023
represented by: Danny Bradford, Esq.
PAUL D. BRADFORD, PLLC
E-mail: dbradford@bradford-law.com
In re Strictly4Bizness LLC
Bankr. M.D.N.C. Case No. 23-10239
Chapter 11 Petition filed May 1, 2023
See
https://www.pacermonitor.com/view/3HEQ2CA/STRICTLY4BIZNESS_LLC__ncmbke-23-10239__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
*********
Monday's edition of the TCR delivers a list of indicative prices
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