/raid1/www/Hosts/bankrupt/TCR_Public/230531.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Wednesday, May 31, 2023, Vol. 27, No. 150
Headlines
20205WY-01 LLC: Property Sale Proceeds to Fund Plan Payments
AB INTERNATIONAL: Case Summary & One Unsecured Creditor
ACCAM1 INC: Files Emergency Bid to Use Cash Collateral
ADHERA THERAPEUTICS: Posts $886K Net Loss in First Quarter
AEARO TECHNOLOGIES: 3M CEO Needed for Earplug Mediation
AEQUOR MGT: Taps RPA Asset Management Services as Consultant
ALBANY REGAL: Mark Schlant Named Subchapter V Trustee
ALLERGY & ASTHMA: U.S. Trustee Appoints David Crapo as PCO
AP ORANGEVALE: Case Summary & Four Unsecured Creditors
ATHENEX INC: Wants to Sells Its Assets Prior to July 1 Shutdown
BJL EXPRESS: Case Summary & 20 Largest Unsecured Creditors
BLOCKFI INC: Creditors Want to Stop $40-Mil. Crypto Seizure of DOJ
BLOCKFI INC: Ordered to Withdraw Unapproved Plan Communications
BLUE STAR: Fails to Regain Nasdaq Compliance; Hearing Requested
BLUE STAR: Incurs $1.95 Million Net Loss in First Quarter
BRICKCHURCH ENTERPRISES: Bay Point Proposes Sale Plan
CAN B CORP: Incurs $1.7 Million Net Loss in First Quarter
CAREVIEW COMMUNICATIONS: Incurs $6 Million Net Loss in 2022
CENTRAL NEW YORK: Case Summary & 20 Largest Unsecured Creditors
CHF-DOVER LLC: S&P Affirms 'BB-' Long-Term Rating on Revenue Bonds
CINEWORLD GROUP: Expects to Exit Chapter 11 in July 2023
CLAREHOUSE LIVING: No Decline in Patient Care, 8th PCO Report Says
CLAUSEN OYSTERS: Hits Chapter 11 Bankruptcy Protection
CLAUSEN OYSTERS: Seeks Cash Collateral Access
COLUMBIA ASTHMA: PCO Reports No Change in Patient Care Quality
COMIC RELIEF: Seth Albin Named Subchapter V Trustee
CONCRETE SOLUTIONS: Has Deal on Cash Collateral Access
CORE SCIENTIFIC: Wants to Emerge from Chapter 11 by September
CORNER BAKERY: Wants to Pursue $12 Million Bankruptcy Sale
CREDITO REAL: Will Seek Bond Votes for $1.9 Bil. Liquidation Deal
CRYPTO CO: Incurs $2.8 Million Net Loss in First Quarter
DAVID'S BRIDAL: Court OKs $85MM DIP Loan from Bank of America
DELCATH SYSTEMS: Incurs $9 Million Net Loss in First Quarter
DIGITAL CURRENCY: Gemini Considers Forbearance After $630M Default
ELITE KIDS: Time to File Plan & Disclosures Extended to Sept. 18
ETHEMA HEALTH: Incurs $176K Net Loss in First Quarter
FIRST DEFENSE: Trustee Seeks to Hire Stichter as Counsel
FKB LLC: Gets OK to Hire Gavin/Solmonese as Asset Sale Advisor
FREE SPEECH: Sandy Hook Families Prepare to Sue Jones' Family, Wife
GLOBAL ALLIANCE: Court OKs Deal on Cash Collateral Thru July 28
GLOBAL TEE: Seeks Cash Collateral Access
GOLDEN Z LLC: Sale of Property by January to Pay Off Claims
GORILLA CAR WASH: Case Summary & Six Unsecured Creditors
GREAT WEST: Gets Approval to Hire Hilco as Real Estate Agent
H-CYTE INC: Incurs $2.1 Million Net Loss in First Quarter
HEARTHSIDE FOOD: Taps Evercore to Help With 2025 Debt Maturities
HIGHPOINT LIFEHOPE: Taps Newmark Real Estate of Dallas as Broker
HOME TOWN FLORIDA: Unsecureds Will Get 100% of Claims over 5 Years
IBIO INC: Posts $7.3 Million Net Loss in Third Quarter
IDAHO ALLERGY: U.S. Trustee Appoints David Crapo as PCO
INDIGO PALMS: No Resident Complaints, 6th PCO Report Says
JEFFERSON LA BREA: Seeks Cash Collateral Access Thru Oct 31
KAYA HOLDINGS: Reports $67K Net Income for First Quarter
MANHATTAN SCIENTIFICS: Incurs $420K Net Loss in First Quarter
METAL CHECK: Stephen Moriarty Named Subchapter V Trustee
MIKE JOHNSON: James Cross Named Subchapter V Trustee
MIRAGE RESTAURANT: Robert Handler Named Subchapter V Trustee
MLCJR LLC: Court OKs $345MM DIP Loan from BP Energy and ANB
MLCJR LLC: Gets OK to Hire Kroll as Claims and Noticing Agent
MONITRONICS INTERNATIONAL: Gets OK to Hire Kroll as Claims Agent
MONITRONICS INTERNATIONAL: Unsecureds Unimpaired in Prepack Plan
MULCH AND STONE: Unsecureds to Get 100 Cents on Dollar in Plan
NEW MILLENNIUM MEDICAL: Hearing Today on Cash Collateral Access
NOVUSON SURGICAL: Seeks Cash Collateral Access
OPULENT VACATIONS: Gets OK to Hire 'Ordinary Course' Contractors
OPULENT VACATIONS: Taps Cohne Kinghorn as Bankruptcy Counsel
OPULENT VACATIONS: Taps Rocky Mountain Advisory as Accountant
PANEVAS LLC: Files Emergency Bid to Use Cash Collateral
PEAR THERAPEUTICS: 4 Firms Want to Purchase Pieces of Company
PEPPERONI GRILL: UST Says Revenues Not Sufficient to Fund Plan
PERIMETER ORTHOPAEDICS: Leon Jones Named Subchapter V Trustee
PG&E CORP: Justices Stay Out of Interest Rate Fight
PHI GROUP: Incurs $1.8 Million Net Loss in Third Quarter
PLASTIQ INC: Hits Chapter 11 Bankruptcy Protection
PRESTON URGENT: Seeks to Hire Dorinda Kisner CPA as Accountant
PURDUE PHARMA: Gets Court OK for Up to $6.7M Executive Bonuses
RBJ PROPERTIES: Stephen Metz Named Subchapter V Trustee
RBJ PROPERTIES: Taps Grossbart Portney and Rosenberg as Counsel
REEVES FARM: Taps Johnson Pope Bokor Ruppel & Burns as Counsel
REMARK HOLDINGS: Incurs $8.2 Million Net Loss in First Quarter
RESIDENCES AT OVATION: Hilco Sets July 13 Qualified Bid Deadline
RESOURCE TRAINING: Case Summary & Six Unsecured Creditors
RETAILING ENTERPRISES: Case Summary & 20 Top Unsecured Creditors
SCREAMWORKS LLC: Case Summary & 10 Unsecured Creditors
SILVERADO STREET: Unsecureds Will Get 12.3% via Bi-Annual Payments
SIO2 MEDICAL: Committee Seeks to Hire White & Case as Counsel
SIO2 MEDICAL: Committee Seeks to Tap Province as Financial Advisor
SIO2 MEDICAL: Committee Taps Potter Anderson & Corroon as Counsel
SOUTH TOWN: Seeks to Hire Michael D. Collins as Bankruptcy Counsel
SOUTHERN HOSPITALITY: Gets Interim Approval to Tap an Accountant
SPI ENERGY: Incurs $9.8 Million Net Loss in First Quarter
STEM HOLDINGS: Incurs $3.2 Million Net Loss in Second Quarter
STEVE'S LAWNMOWER: Case Summary & 20 Largest Unsecured Creditors
SUNRISE REAL: Incurs $1.9 Million Net Loss in First Quarter
TREES CORP: Incurs $1.9 Million Net Loss in First Quarter
VIRGIN ORBIT: Assets Bought by Stratolaunch, Rocket Lab US
VITAL PHARMACEUTICALS: Former CEO Jeopardizes Chapter 11 Sale
VOIP-PAL.COM INC: Posts $776K Net Loss in Second Quarter
VOYAGER DIGITAL: Investor Attorneys Fight Cuban's Sanctions Bid
WELCH & WELCH PLANTING: Enters Chapter 11 Bankruptcy Protection
WHITETAIL GENERAL: Has Deal on Cash Collateral Access
WWMAJ SYSTEMS: G. Matt Barberich, Jr. Named Subchapter V Trustee
XPLORE INC: S&P Downgrades ICR to 'CCC+' on Lower Earnings
ZEOLI-BROWN LLC: Amends Unsecureds & Huntington Bank Secured Claim
ZIP MAILING: Seeks Cash Collateral Access
*********
20205WY-01 LLC: Property Sale Proceeds to Fund Plan Payments
------------------------------------------------------------
20205WY-01, LLC, filed with the U.S. Bankruptcy Court for the
Northern District of California a Disclosure Statement describing
Chapter 11 Plan of Liquidation.
The Debtor is a Wyoming limited liability company. Victoria Haas is
the sole member of the Debtor.
The Debtor purchased the Property on May 7, 2021, from Mary J.
Helmrich, as trustee of the Hartley-Helmrich 2013 Revocable Trust
by grant deed. In order to purchase the Property, the Debtor
obtained a loan from Loan Funder, LLC ("Loan Funder") in the amount
of $993,376. As of the Petition Date, Loan Funder was owed
approximately $998,203.40.
The Debtor purchased the Property with the goal of remodeling the
Property and flipping it for profit. Based on a broker's price
opinion, the Property is worth approximately $1,400,000 "as is" and
$1,650,000 once completed. The Property is not operating and there
are no employees.
Loan Funder recorded a notice of default on October 19, 2022 and
scheduled a foreclosure sale for February 21, 2023. The filing of
the bankruptcy petition was precipitated by the foreclosure sale.
The Plan is a liquidating plan. Allowed Claims will be paid in
full through the sale of the Debtor's single asset, a piece of real
property located at 743 Hilldale Avenue, Berkeley, California 94705
("Property"). The sale proceeds will be distributed in accordance
with the priority scheme set forth in the Bankruptcy Code.
The effective date of the Plan will be the later of: (1) the close
of the sale of the Property, or (2) the first Business Day that is
at least 15 days after the entry of an order confirming the Plan,
provided there has been no order staying the effectiveness of the
Plan Confirmation Order.
Class 5 consists of General Unsecured Claims. To the extent there
are funds available from the sale of the Property, the Class 5
Claims will be paid in full on the Effective Date. Alternatively,
the Class 5 Claims will receive, in full and final satisfaction of
such claim, a pro rata share of the remaining proceeds. The Debtor
believes that the sale proceeds will be sufficient to pay the Class
5 Claims. The allowed unsecured claims total $8,832.24.
Class 6 consists of Interest Holders. All current interest holders
will retain their percentage equity membership in the Debtor that
they held as of the Petition Date. To the extent that there are
additional sale proceeds after payment of all other creditors, the
surplus will be paid to Class 6.
The Distributions required to be made under the Plan will be funded
by the sale of the Property. The Debtor's broker has estimated
that the Property is worth approximately $1,400,000 "as is" and
$1,650,000 once completed. It is currently being marketed at
$1,500,000. If sold at $1,500,000, after closing costs, the Debtor
should have $1,380,000 in proceeds and thus will have sufficient
funds to pay all Allowed Claims in full and there will be a surplus
for interest holders.
A full-text copy of the Disclosure Statement dated May 22, 2023 is
available at https://urlcurt.com/u?l=Tl2p3m from PacerMonitor.com
at no charge.
Attorneys for Debtor:
David M. Goodrich, Esq.
Sonja M. Hourany, Esq.
Golden Goodrich, LLP
650 Town Center Drive, Suite 600
Costa Mesa, CA 92626
Telephone 714-966-1000
Facsimile 714-966-1002
Email: dgoodrich@go2.law
shourany@go2.law
About 20205WY-01, LLC
20205WY-01, LLC is a Single Asset Real Estate (as defined in 11
U.S.C. Section 101(51B)). The Debtor owns in fee simple title a
property located at 743 Hilldale Avenue Berkeley, California valued
at $1.6 million.
20205WY-01, LLC filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. N.D. Cal. Case No.
24-40185) on Feb. 20, 2023. The petition was signed by Victoria
Haas as member. At the time of filing, the Debtor estimated
$1,600,065 in assets and $1,103,433 in liabilities.
David M. Goodrich, Esq. at GOLDEN GOODRICH LLP represents the
Debtor as counsel.
AB INTERNATIONAL: Case Summary & One Unsecured Creditor
-------------------------------------------------------
Debtor: AB International LLC
950 Herrington Rd
Ste C205
Lawrenceville, GA 30044-7217
Chapter 11 Petition Date: May 29, 2023
Court: United States Bankruptcy Court
Northern District of Georgia
Case No.: 23-54964
Debtor's Counsel: Milton Jones, Esq.
MILTON JONES, ATTORNEY
PO Box 533
Lovejoy, GA 30250-0533
Tel: (770)899-8486
Email: miltondjones@comcast.net
Total Assets: $1,200
Total Liabilities: $1,900,000
The petition was signed by Amit F Bijani as CEO.
The Debtor listed Noorani Trading, Inc. as its single unsecured
creditor holding a claim of $1.9 million.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/XZPBSJY/AB_International_LLC__ganbke-23-54964__0001.0.pdf?mcid=tGE4TAMA
ACCAM1 INC: Files Emergency Bid to Use Cash Collateral
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Accam1, Inc., asks the U.S. Bankruptcy Court for the Middle
District of Florida, Fort Myers Division, for authority to use any
cash collateral immediately to fund the operating expenses
necessary to continue the operation of its business and maintain
the estate, and otherwise avoid irreparable harm and injury to its
business and the estate.
Prior to the Petition Date, the Debtor borrowed funds from Regions
Bank under a promissory note and security agreement.
On the Petition Date, Regions asserts that it is owed approximately
$2.5 million respectively, on account of the note and security
agreement.
Pursuant to the note and security agreement, Regions asserts that
the Debtor granted to Regions a lien on and security interest in
the accounts receivable and various equipment and inventory, and
the proceeds generated from the liens.
Further, Regions asserts that (a) it has a perfected security
interest on the Collateral, and (b) its notes are secured by the
accounts receivable.
The Debtor proposes to use the cash collateral for purposes which
include:
(a) Care, maintenance and preservation of the Debtor's
assets;
(b) Payment of other business expenses; and
(c) Continued business operations, including compensation for
the Debtor's president for continuing to manage the business.
The Debtor proposes a replacement lien on Collateral acquired after
the Petition Date equal in extent, validity, and priority to any
security interest in Collateral that Regions held as of the
Petition Date. The Debtor proposes that Regions have a "floating"
lien on the assets which continue to "float", notwithstanding 11
U.S.C. section 552, to the same extent and level of priority as any
pre-petition lien on the Collateral.
A copy of the motion is available at https://urlcurt.com/u?l=RbIg5C
from PacerMonitor.com.
About Accam1, Inc.
Accam1, Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 23-00574) on May 23,
2023. In the petition signed by Al Mueller, president, the Debtor
disclosed up to $10 million in both assets and liabilities.
Jonathan Bierfeld, Esq., at Martin Law Firm, represents the Debtor
as legal counsel.
ADHERA THERAPEUTICS: Posts $886K Net Loss in First Quarter
----------------------------------------------------------
Adhera Therapeutics, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $886,000 for the three months ended March 31, 2023, compared to
a net loss of $74,000 for the three months ended March 31, 2022.
As of March 31, 2023, the Company had $104,000 in total assets,
$23.20 million in total liabilities, and a total stockholders'
deficit of $23.09 million.
Adhera said, "The Company has no revenues and has incurred
recurring losses and negative cash flows from operations since
inception and has funded its operating losses through the sale of
common stock, preferred stock, warrants to purchase common stock,
convertible notes and secured promissory notes. The Company
incurred a net loss and net cash used in operating activities of
approximately $886,000 and $310,000, respectively for the three
months ended March 31, 2023. The Company had a working capital
deficit of approximately $23.1 million, a stockholders' deficit of
approximately $23.1 million and an accumulated deficit of
approximately $56.7 million as of March 31, 2023.
"In addition, to the extent that the Company continues its business
operations, the Company anticipates that it will continue to have
negative cash flows from operations, at least into the near future.
However, the Company cannot be certain that it will be able to
obtain such funds required for our operations at terms acceptable
to the Company or at all. General market conditions, as well as
market conditions for companies in the Company's financial and
business position, as well as the ongoing issue arising from the
COVID-19 pandemic, the war in Ukraine, federal bank failures or
other world-wide events, may make it difficult for the Company to
seek financing from the capital markets, and the terms of any
financing may adversely affect the holdings or the rights of its
stockholders. If the Company is unable to obtain additional
financing in the future, there may be a negative impact on the
financial viability of the Company. The Company plans to increase
working capital by managing its cash flows and expenses, divesting
development assets and raising additional capital through private
or public equity or debt financing. There can be no assurance that
such financing or partnerships will be available on terms which are
favorable to the Company or at all. While management of the
Company believes that it has a plan to fund ongoing operations,
there is no assurance that its plan will be successfully
implemented. Failure to raise additional capital through one or
more financings, divesting development assets or reducing
discretionary spending could have a material adverse effect on the
Company's ability to achieve its intended business objectives.
These factors raise substantial doubt about the Company's ability
to continue as a going concern for a period of twelve months from
the issuance date of this Report. The consolidated financial
statements do not contain any adjustments that might result from
the resolution of any of the above uncertainties."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/737207/000149315223018516/form10-q.htm
About Adhera
Headquartered in Durham, NC, Adhera Therapeutics, Inc. (formerly
known as Marina Biotech, Inc.) -- http://www.adherathera.com-- is
an emerging specialty biotech company that, to the extent that
resources and opportunities become available, is strategically
evaluating its focus including a return to a drug discovery and
development company.
Adhera Therapeutics reported a net loss of $2.11 million in 2022,
compared to a net loss of $6.35 million in 2021. As of Dec. 31,
2022, the Company had $79,000 in total assets, $22.26 million in
total liabilities, and a total stockholders' deficit of $22.18
million.
Boca Raton, Florida-based Salberg & Company, P.A., the Company's
auditor since 2021, issued a "going concern" qualification in its
report dated March 31, 2023, citing that the Company has no
revenues and has a net loss and net cash used in operations of
approximately $2.1 million and $1.4 million respectively, in 2022
and a working capital deficit, stockholders' deficit and
accumulated deficit of $22.2 million, $22.2 million and $55.8
million respectively, at Dec. 31, 2022. These matters raise
substantial doubt about the Company's ability to continue as a
going concern.
AEARO TECHNOLOGIES: 3M CEO Needed for Earplug Mediation
-------------------------------------------------------
Dietrich Knauth of Reuters reports that a federal judge has ordered
3M Co CEO Michael Roman to attend mediation aimed at resolving
nearly 260,000 lawsuits alleging that 3M military earplugs caused
hearing loss, saying the negotiations have reached a "critical
juncture."
U.S. District Judge Casey Rodgers, in whose Florida court the
lawsuits have been consolidated, on Friday ordered Roman to attend
mediation talks in Pensacola on May 25 and 26, so that he may
"listen and engage directly with the mediators." The mediation so
far has been "encouraging," but it requires 3M senior leadership to
push ahead, Rodgers said in her order.
Roman's attendance will ensure that 3M's board will have "firsthand
knowledge of the current state of the negotiations" when evaluating
any settlement offer, Rodgers said.
3M has sought to resolve the lawsuits brought by veterans and
members of the military who allege that 3M's combat arms earplugs
were defective and damaged their hearing through the bankruptcy of
its subsidiary Aearo Technologies LLC, which manufactured the
earplugs.
3M had opposed efforts to renew mediation efforts in Florida
federal court while Aearo's bankruptcy case is pending. Previous
efforts reached an impasse in January, as 3M and the earplug
plaintiffs focused their attention on Aearo's bankruptcy.
3M was ordered earlier this month to resume mediation.
A company spokesman said Monday that 3M continues to believe that
Aearo's bankruptcy provides a better option for resolving the
earplug claims "more quickly, with more certainty and with more
balanced recoveries among claimants."
Aearo's bankruptcy strategy has been fiercely opposed by
plaintiffs, who said that 3M was merely trying to escape litigation
in Florida, following a series of unfavorable legal rulings and
trial losses.
Veterans and service members have called for the dismissal of
Aearo's bankruptcy, which is proceeding in U.S. bankruptcy court in
Indianapolis, and they are awaiting a ruling from the judge
overseeing the case.
Aearo filed for bankruptcy last July, with 3M pledging $1 billion
to fund Aearo's liabilities stemming from the lawsuits that accuse
both Aearo and 3M of misrepresenting the earplugs' effectiveness.
The litigation against 3M and Aearo is the largest-ever
multi-district litigation in U.S. history, with nearly 330,000
cases filed and nearly 260,000 pending cases, according to court
statistics from May 15.
3M has lost 10 of the 16 cases that have gone to trial so far, with
about $265 million being awarded in total to 13 plaintiffs.
The MDL is In re 3M Combat Arms Earplug Products Liability
Litigation, U.S. District Court, Northern District of Florida, No.
19-md-2885.
For the plaintiffs: Bryan Aylstock of Aylstock, Witkin, Kreis &
Overholtz; Shelley Hutson of Clark, Love & Hutson; and Chris Seeger
of Seeger Weiss
For 3M: Mike Brock, Christa Cottrell, David Horowitz and Saghar
Esfandiarifard of Kirkland & Ellis
About Aearo Technologies
Aearo Technologies -- https://earglobal.com/en -- is a 3M company
that designs, manufactures, and sells personal protection
equipment. The Company offers prescription and non-prescription
safety eye wear, face shields, hard hats, and respirators. Aearo
serves customers worldwide.
To address claims related to the Combat Arms Earplugs Version 2,
Aearo Technologies LLC and its affiliates sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Ind. Lead Case
No. 22-02890) on July 26, 2022. In the petition filed by John R.
Castellano, as authorized signatory, Aearo Technologies estimated
assets and liabilities between $1 billion and $10 billion each.
3M is not a debtor in the Chapter 11 cases. 3M has committed $1
billion to fund a trust allocated for Combat Arms claims.
Kirkland & Ellis LLP is serving as legal counsel and AlixPartners
LLP is serving as restructuring advisor to Aearo Technologies. Ice
Miller LLP, is serving as bankruptcy co-counsel to the Debtors.
Kroll is the claims agent.
PJT Partners is serving as financial advisor and White & Case LLP
is serving as legal counsel to 3M.
AEQUOR MGT: Taps RPA Asset Management Services as Consultant
------------------------------------------------------------
Aequor Mgt, LLC and Aequor Holdings, LLC seek approval from the
U.S. Bankruptcy Court for the Eastern District of Texas to employ
RPA Asset Management Services, LLC.
The Debtors require a special consultant to:
(a) market the Debtors' assets to potential purchasers through
an organized sale process;
(b) together with the Debtors' general bankruptcy counsel,
develop bidding procedures for use in a sale of their assets;
(c) prepare for and participate in an auction of assets in
accordance with Bankruptcy Code section 363;
(d) assist the Debtors in analyzing reorganization options and
selecting the best course of action;
(e) testify, as required, in the bankruptcy cases on matters
related to the services; and
(f) participate in meetings and discussions with the Debtors'
managers or directors, representatives of the various creditor
constituencies, and with their respective professionals.
RPA has agreed to provide consulting services to the Debtors for a
monthly flat fee of $100,000.
Additionally, following any sale or other disposition of ownership
or control of all or substantially all of the Debtors' assets, RPA
will be compensated for its services with a transaction fee equal
to 7 percent of the total cash proceeds and the fair market value
of other consideration paid or payable to the Debtors in a
transaction.
RPA will also be reimbursed for expenses incurred.
Chip Cummins, a member of RPA, 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:
Chip Cummins
RPA Asset Management Services, LLC
45 Eisenhower Drive, Suite 560
Paramus, NJ 07652
Telephone: (201) 527-6652
Email: ccummins@rpaadvisors.com
About Aequor Mgt
Aequor Mgt, LLC -- https://BurroSand.com/ -- claims to be the
lowest cost producer of 100 Mesh frac sand in the Permian Basin
serving oil and gas producers. The company is based in Tyler,
Texas.
Aequor Mgt and Aequor Holdings, LLC filed petitions for relief
under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Tex. Lead Case
No. 23-60010) on Jan. 5, 2023. At the time of the filing, Aequor
Mgt reported $1 million to $10 million in assets and $50 million to
$100 million in liabilities while Aequor Holdings reported $10
million to $50 million in both assets and liabilities.
Judge Joshua P. Searcy oversees the cases.
The Debtors are represented by Davor Rukavina, Esq., at Munsch
Hardt Kopf & Harr, P.C.
The U.S. Trustee for Region 6 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
Porter Hedges, LLP and Dundon Advisers, LLC serve as the
committee's legal counsel and financial advisor, respectively.
ALBANY REGAL: Mark Schlant Named Subchapter V Trustee
-----------------------------------------------------
The U.S. Trustee for Region 2 appointed Mark Schlant, Esq., at
Zdarsky, Sawicki & Agostinelli, LLP as Subchapter V trustee for
Albany Regal Dry Cleaning & Coin Laundry, LLC.
Mr. Schlant will be paid an hourly fee of $275 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Schlant declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Mark J. Schlant, Esq.
Zdarsky, Sawicki & Agostinelli, LLP
1600 Main Place Tower
350 Main St.
Buffalo, NY 14202
Phone: (716) 855-3200
Email: mschlant@zsalawfirm.com
About Albany Regal
Albany Regal Dry Cleaning & Coin Laundry, LLC filed a petition
under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr.
N.D.N.Y. Case No. 23-10489) on May 15, 2023. At the time of the
filing, the Debtor reported $100,001 to $500,000 in both assets and
liabilities.
ALLERGY & ASTHMA: U.S. Trustee Appoints David Crapo as PCO
----------------------------------------------------------
Peter Anderson, the United States Trustee for Region 16, appointed
David N. Crapo as patient care ombudsman for Allergy & Asthma
Center of S.W. Washington, LLC.
The appointment was made pursuant to the order from the U.S.
Bankruptcy Court for the Central District of California approving a
stipulation for the appointment of a patient care ombudsman. The
United States Trustee is authorized to appoint a patient care
ombudsman in this case under Section 333(a)(1) of the Bankruptcy
Code.
In the PCO's investigation, the PCO discovered no known connections
with Allergy & Asthma Center, principals of Allergy & Asthma
Center, insiders, creditors or any other party involved in the
company's Chapter 11 case.
A copy of the notice is available for free at
https://urlcurt.com/u?l=DYXlHs from PacerMonitor.com.
About Allergy & Asthma Center
Allergy & Asthma Center is a provider of personalized care for
allergies and asthma. The Debtor sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 23-11270) on
March 6, 2023. In the petition signed by Sanjeev Jain, MD, chief
executive officer, the Debtor disclosed up to $500,000 in assets
and up to $10 million in liabilities.
Judge Vincent P. Zurzolo oversees the case.
The Law Offices of Michael Jay Berger is the Debtor's legal
counsel.
AP ORANGEVALE: Case Summary & Four Unsecured Creditors
------------------------------------------------------
Debtor: AP Orangevale, LLC
675 W Indiantown Road, Ste 103
Jupiter FL 33458
Business Description: The Debtor is a Single Asset Real Estate
(as defined in 11 U.S.C. Section 101(51B)).
Chapter 11 Petition Date: May 29, 2023
Court: United States Bankruptcy Court
District of Delaware
Case No.: 23-10687
Debtor's Counsel: Christopher P. Simon, Esq.
CROSS & SIMON, LLC
1105 N. Market Street, Suite 901
Wilmington, DE 19801
Tel: 302-777-4200
Email: csimon@crosslaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Richard Sabella manager.
A full-text copy of the petition containing, among other items, a
list of the Debtor's four unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/H2BQPQQ/AP_Orangevale_LLC__debke-23-10687__0001.0.pdf?mcid=tGE4TAMA
ATHENEX INC: Wants to Sells Its Assets Prior to July 1 Shutdown
---------------------------------------------------------------
Paige Twenter of Becker's Hospital Review reports that a Buffalo,
N.Y.-based biopharmaceutical company filed for bankruptcy and is
attempting to sell its assets before a July 1 shutdown, according
to court documents.
The drugmaker, Athenex, filed for Chapter 11 bankruptcy May 14 in
Texas. Athenex is looking to sell its pharma solutions, research
and development, and pharmaceutical division businesses.
Athenex, founded in 2003, develops and sells drugs intended to
treat cancer and other conditions. The bankruptcy is because of a
"significant regulatory setback … challenging biotech markets and
the difficult economic environment," according to a May 14 news
release.
"Over the past two years, we made considerable progress in
refocusing our business around our promising NKT cell therapy
platform, monetizing non-core assets to improve our balance sheet
and extending our cash runway, paying down $108 million of debt and
undertaking a comprehensive review of strategic alternatives to
create value for our stakeholders," Athenex CEO Johnson Lau, MD,
said in the release.
"While we explored every viable avenue to avoid this outcome, an
orderly sales process represents the best path forward at this
time," he said.
Athenex said it will continue manufacturing its actinic keratosis
drug tirbanibulin for the next 90 days. Here are about three dozen
other products from the company that could soon leave the U.S. drug
market.
About Athenex Inc.
Founded in 2003, Athenex, Inc. (NASDAQ: ATNX) --
http://www.athenex.com/-- is a clinical-stage biopharmaceutical
company dedicated to becoming a leader in the discovery,
development, and commercialization of next-generation cell therapy
products for the treatment of cancer. The Company's mission is to
become a leader in bringing innovative cancer treatments to the
market and to improve patient health outcomes. In pursuit of this
mission, Athenex leverages years of experience in research and
development, clinical trials, regulatory standards, and
manufacturing. The Company is focused on its innovative Cell
Therapy platform, based on natural killer T ("NKT") cells.
On May 14, 2023, Athenex, Inc. and five affiliated companies
initiated voluntary Chapter 11 proceedings (Bankr. S.D. Tex. Lead
Case No. 23-90295). The Company's cases have been assigned to the
Honorable David R. Jones.
Athenex commenced these proceedings after conducting a strategic
review and reaching an agreement with its lenders to conduct an
expedited, orderly sales process of the Company's assets across its
primary businesses: Athenex Pharmaceutical Division ("APD"),
Orascovery, and Cell Therapy.
In the petition filed by Nicholas K. Campbell, as chief
restructuring officer, the Debtor reported assets and liabilities
between $100 million and $500 million.
Pachulski Stang Ziehl & Jones LLP is acting as Athenex's legal
counsel. MERU is serving as its financial advisor, and Cassel
Salpeter & Co., LLC as its investment banker. Epiq is the claims
agent.
BJL EXPRESS: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: BJL Express, LLC
7446 Page Ct
Jonesboro, GA 30236-2614
Business Description: BJL Express operates in the general freight
trucking industry.
Chapter 11 Petition Date: May 29, 2023
Court: United States Bankruptcy Court
Northern District of Georgia
Case No.: 23-54963
Debtor's Counsel: Milton Jones, Esq.
MILTON JONES, ATTORNEY
PO Box 533
Lovejoy, GA 30250-0533
Tel: (770) 899-8486
Email: miltondjones@comcast.net
Total Assets: $81,128
Total Liabilities: $1,004,297
The petition was signed by Nenneh Nyang as CEO.
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/X7MDFLY/BJL_Express_LLC__ganbke-23-54963__0001.0.pdf?mcid=tGE4TAMA
BLOCKFI INC: Creditors Want to Stop $40-Mil. Crypto Seizure of DOJ
------------------------------------------------------------------
James Nani of Bloomberg Law reports that BlockFi Inc.'s unsecured
creditors have asked a bankruptcy court to stop the federal
government from seizing nearly $40 million in virtual currency as
part of an unrelated criminal case.
An agreement allowing the US Department of Justice to seize funds
from the accounts of two Estonian citizens facing fraud charges
will impair creditor recoveries, an unsecured creditor committee
told the New Jersey bankruptcy court in a complaint filed Monday,
May 22, 2023.
The pair were arrested in October after being hit with an 18-count
indictment accusing them of running a $575 million cryptocurrency
fraud and money laundering conspiracy.
About BlockFi Inc.
BlockFi is building a bridge between digital assets and traditional
financial and wealth management products to advance the overall
digital asset ecosystem for individual and institutional
investors.
BlockFi was founded in 2017 by Zac Prince and Flori Marquez and in
its early days had backing from influential Wall Street investors
like Mike Novogratz and, later on, Valar Ventures, a Peter
Thiel-backed venture fund as well as Winklevoss Capital, among
others. BlockFi made waves in 2019 when it began providing
interest-bearing accounts with returns paid in Bitcoin and Ether,
with its program attracting millions of dollars in deposits right
away.
BlockFi grew during the pandemic years and had offices in New York,
New Jersey, Singapore, Poland and Argentina.
BlockFi worked with FTX US after it took an $80 million hit from
the bad debt of crypto hedge fund Three Arrows Capital, which
imploded after the TerraUSD stablecoin wipeout in May 2022.
BlockFi had significant exposure to the companies founded by former
FTX Chief Executive Officer Sam Bankman-Fried. BlockFi received a
$400 million credit line from FTX US in an agreement that also gave
FTX the option to acquire BlockFi through a bailout orchestrated by
Bankman-Fried over the summer. BlockFi also had collateralized
loans to Alameda Research, the trading firm co-founded by
Bankman-Fried.
BlockFi is the latest crypto firm to seek bankruptcy amid a
prolonged slump in digital asset prices. Lenders Celsius Network
LLC and Voyager Digital Holdings Inc. also filed for court
protection this year. Kirkland & Ellis is also advising Celsius and
Voyager in their separate Chapter 11 cases.
BlockFi Inc. and eight affiliates sought protection under Chapter
11 of the Bankruptcy Code (Bankr. D.N.J. Lead Case No. 22-19361) on
Nov. 28, 2022. In the petitions signed by their chief executive
officer, Zachary Prince, the Debtors reported $1 billion to $10
billion in both assets and liabilities.
Judge Michael B. Kaplan oversees the cases.
The Debtors taped Kirkland & Ellis and Haynes and Boone, LLP as
general bankruptcy counsels; Walkers (Bermuda) Limited as special
Bermuda counsel; Cole Schotz, P.C., as local counsel; Berkeley
Research Group, LLC as financial advisor; Moelis & Company as
investment banker; and Street Advisory Group, LLC as strategic and
communications advisor. Kroll Restructuring Administration, LLC is
the notice and claims agent.
BLOCKFI INC: Ordered to Withdraw Unapproved Plan Communications
---------------------------------------------------------------
Sandali Handagama of Coin Desk reports that bankrupt crypto lender
BlockFi has withdrawn statements relating to a wind-down plan
published May 13, 2023 following an order from a U.S. bankruptcy
court, court filings show.
The estate was required to issue a "corrective letter" clarifying
that the documents were posted prematurely and without court
approval, an emergency order issued May 18, 2023 by New Jersey
Bankruptcy Court Judge Michael B. Kaplan said.
The documents in question had said some $1 billion in claims
against commercial counterparts like collapsed crypto exchange FTX
and its trading arm Alameda will be the "largest driver" in the
success of getting creditors their money back. "The purpose of the
disclosure statement is to provide clients with the information
that they need to make an informed decision about whether to vote
to accept our plan," the company tweeted at the time.
The BlockFi estate has been at odds with its creditors after filing
for bankruptcy in November 2022, with the latter blaming the firm's
poor management and subsequent restructuring plans for its demise
as recently as May 15, 2023.
The court-ordered letter -- which BlockFi posted on its official
Twitter account on Friday -- says it has yet to approve the
estate's "ability to solicit acceptances of its plan."
"A disclosure statement must be approved by the Court before any
party may lawfully encourage you to accept or reject any plan of
reorganization," the letter said.
The creditors and other parties do not support the reorganization
plan, the corrective letter said. The Official Committee of
Unsecured Creditors "believes that the plan provides releases of
litigation claims against, among others, current and former
directors and officers of BlockFi that committed significant
misconduct that harmed BlockFi and its customers."
A hearing on the reorganization plan is set for June 20, 2023.
About BlockFi Inc.
BlockFi is building a bridge between digital assets and traditional
financial and wealth management products to advance the overall
digital asset ecosystem for individual and institutional
investors.
BlockFi was founded in 2017 by Zac Prince and Flori Marquez and in
its early days had backing from influential Wall Street investors
like Mike Novogratz and, later on, Valar Ventures, a Peter
Thiel-backed venture fund as well as Winklevoss Capital, among
others. BlockFi made waves in 2019 when it began providing
interest-bearing accounts with returns paid in Bitcoin and Ether,
with its program attracting millions of dollars in deposits right
away.
BlockFi grew during the pandemic years and had offices in New York,
New Jersey, Singapore, Poland and Argentina.
BlockFi worked with FTX US after it took an $80 million hit from
the bad debt of crypto hedge fund Three Arrows Capital, which
imploded after the TerraUSD stablecoin wipeout in May 2022.
BlockFi had significant exposure to the companies founded by former
FTX Chief Executive Officer Sam Bankman-Fried. BlockFi received a
$400 million credit line from FTX US in an agreement that also gave
FTX the option to acquire BlockFi through a bailout orchestrated by
Bankman-Fried over the summer. BlockFi also had collateralized
loans to Alameda Research, the trading firm co-founded by
Bankman-Fried.
BlockFi is the latest crypto firm to seek bankruptcy amid a
prolonged slump in digital asset prices. Lenders Celsius Network
LLC and Voyager Digital Holdings Inc. also filed for court
protection this year. Kirkland & Ellis is also advising Celsius and
Voyager in their separate Chapter 11 cases.
BlockFi Inc. and eight affiliates sought protection under Chapter
11 of the Bankruptcy Code (Bankr. D.N.J. Lead Case No. 22-19361) on
Nov. 28, 2022. In the petitions signed by their chief executive
officer, Zachary Prince, the Debtors reported $1 billion to $10
billion in both assets and liabilities.
Judge Michael B. Kaplan oversees the cases.
The Debtors taped Kirkland & Ellis and Haynes and Boone, LLP as
general bankruptcy counsels; Walkers (Bermuda) Limited as special
Bermuda counsel; Cole Schotz, P.C., as local counsel; Berkeley
Research Group, LLC as financial advisor; Moelis & Company as
investment banker; and Street Advisory Group, LLC as strategic and
communications advisor. Kroll Restructuring Administration, LLC is
the notice and claims agent.
BLUE STAR: Fails to Regain Nasdaq Compliance; Hearing Requested
---------------------------------------------------------------
Blue Star Foods Corp. received a letter from the Listing
Qualifications Staff of The Nasdaq Stock Market LLC on May 17,
2023, indicating that the Company has not regained compliance with
the minimum bid price requirement in Nasdaq Listing Rule 5550(a)(2)
for continued listing on The Nasdaq Capital Market and is not
eligible for a second 180-day period to regain compliance with the
Minimum Bid Price Requirement. Accordingly, unless the Company
timely requests an appeal of this determination before the Nasdaq
Hearings Panel, the Company's securities will be scheduled for
delisting from The Nasdaq Capital Market and suspended.
On May 22, 2023, the Company requested a hearing before the Panel,
at which hearing the Company will provide its plan to regain
compliance with the Minimum Bid Price Requirement. The Company's
request for a hearing will stay any suspension or delisting action
by Nasdaq pending the Panel's final decision.
On May 10, 2023, the Company held a special meeting of stockholders
at which the Company's stockholders approved the adoption and
approval of an amendment to the Company's Amended and Restated
Certificate of Incorporation to effect a reverse stock split of the
shares of the Company's common stock at a specific ratio, ranging
from one-for-two (1:2) to one-for-fifty (1:50), with the exact
ratio to be determined by the Company's board of directors without
further approval or authorization of the Company's stockholders, in
order to regain compliance with the Minimum Bid Price Requirement.
As previously disclosed, the Staff's determination follows the
receipt by the Company of a deficiency notice from the Staff on
Nov. 17, 2022, indicating that based upon the closing bid price of
the Company's common stock for the prior 30 consecutive business
days, the Company was not in compliance with the Minimum Bid Price
Requirement. In accordance with Nasdaq Listing Rule 5810(c)(3)(A),
the Company was provided a grace period of 180 days, or until May
16, 2023, to regain compliance with the Minimum Bid Price
Requirement. However, as disclosed above, the Company did not
regain compliance with the Minimum Bid Price Requirement by May 16,
2023.
About Blue Star Foods
Blue Star Foods Corp. is an international sustainable marine
protein company based in Miami, Florida that imports, packages and
sells refrigerated pasteurized crab meat, and other premium seafood
products. The Company's main operating business, John Keeler &
Co., Inc. was incorporated in the State of Florida in May 1995.
The Company's current source of revenue is importing blue and red
swimming crab meat primarily from Indonesia, Philippines and China
and distributing it in the United States and Canada under several
brand names such as Blue Star, Oceanica, Pacifika, Crab & Go, First
Choice, Good Stuff and Coastal Pride Fresh, and steelhead salmon
and rainbow trout fingerlings produced under the brand name Little
Cedar Farms for distribution in Canada.
Blue Star reported a net loss of $13.19 million for the year ended
Dec. 31, 2022, compared to a net loss of $2.61 million for the year
ended Dec. 31, 2021. As of Dec. 31, 2022, the Company had $8.68
million in total assets, $9.92 million in total liabilities, and a
total stockholders' deficit of $1.24 million.
Houston, Texas-based MaloneBailey, LLP, the Company's auditor since
2014, issued a "going concern" qualification in its report dated
April 17, 2023, citing that the Company has suffered recurring
losses from operations and has a net capital deficiency that raises
substantial doubt about its ability to continue as a going concern.
BLUE STAR: Incurs $1.95 Million Net Loss in First Quarter
---------------------------------------------------------
Blue Star Foods Corp. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $1.95 million on $1.90 million of net revenues for the three
months ended March 31, 2023, compared to a net loss of $1.05
million on $5.32 million of net revenue for the three months ended
March 31, 2022.
As of March 31, 2023, the Company had $8.04 million in total
assets, $7.56 million in total liabilities, and $479,238 in total
stockholders' equity.
For the three months ended March 31, 2023, the Company incurred a
net loss, had an accumulated deficit of $31,290,522 and a working
capital deficit of $1,446,078, inclusive of $893,000 in stockholder
debt.
"These factors raise substantial doubt as to the Company's ability
to continue as a going concern. The Company's ability to continue
as a going concern is dependent upon the Company's ability to
increase revenues, execute on its business plan to acquire
complimentary companies, raise capital, and to continue to sustain
adequate working capital to finance its operations. The failure to
achieve the necessary levels of profitability and cash flows would
be detrimental to the Company," Blue Star stated in the filing.
Management Commentary
John Keeler, Chairman and CEO of Blue Star, commented, "We got off
to a slow beginning for 2023, but started to see some increase in
demand and orders towards the end of the first quarter. Our RAS
business continues to perform well and, although our 10X RAS
expansion plans are taking longer than previously expected, remain
poised for expansion. We hope to have specific details on our RAS
expansion to share over the next few months."
Mr. Keeler concluded, "Subsequent to the end of the first quarter,
we raised $150,000 in equity priced at $0.20 with an institutional
fund, who has also agreed to purchase up to an additional
$10,000,000 of the Company's common stock, with the timing, exact
dollar amounts and pricing up to the Company. In addition, we
entered into a non-binding term sheet with Lind Global Fund II,
L.P. that contemplates the Company entering into a new securities
purchase agreement with Lind, pursuant to which the Company will
issue to Lind a secured, two-year, convertible promissory note in
the principal amount of approximately $1,200,000 and a common stock
purchase warrant to acquire shares of common stock of the Company.
As to Nasdaq's letter scheduling the delisting and suspension of
trading of the Company's common stock: We have requested the
hearing before the Nasdaq Hearings Panel. The Company's request
for a hearing will stay any suspension or delisting action by
Nasdaq pending the Panel's final decision. At the hearing, the
Company will provide its plan to regain compliance with Nasdaq's
Minimum Bid Price Requirement, which includes but is not limited to
an already shareholder approved reverse stock split if necessary.
We look forward to the remainder of 2023 and look forward to
providing updates on our progress."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1730773/000149315223018547/form10-q.htm
About Blue Star Foods
Blue Star Foods Corp. is an international sustainable marine
protein company based in Miami, Florida that imports, packages and
sells refrigerated pasteurized crab meat, and other premium seafood
products. The Company's main operating business, John Keeler &
Co., Inc. was incorporated in the State of Florida in May 1995.
The Company's current source of revenue is importing blue and red
swimming crab meat primarily from Indonesia, Philippines and China
and distributing it in the United States and Canada under several
brand names such as Blue Star, Oceanica, Pacifika, Crab & Go, First
Choice, Good Stuff and Coastal Pride Fresh, and steelhead salmon
and rainbow trout fingerlings produced under the brand name Little
Cedar Farms for distribution in Canada.
Blue Star reported a net loss of $13.19 million for the year ended
Dec. 31, 2022, compared to a net loss of $2.61 million for the year
ended Dec. 31, 2021. As of Dec. 31, 2022, the Company had $8.68
million in total assets, $9.92 million in total liabilities, and a
total stockholders' deficit of $1.24 million.
Houston, Texas-based MaloneBailey, LLP, the Company's auditor since
2014, issued a "going concern" qualification in its report dated
April 17, 2023, citing that the Company has suffered recurring
losses from operations and has a net capital deficiency that raises
substantial doubt about its ability to continue as a going concern.
BRICKCHURCH ENTERPRISES: Bay Point Proposes Sale Plan
-----------------------------------------------------
Plan proponent Bay Point Capital Partners II, LP, filed with the
U.S. Bankruptcy Court for the Eastern District of New York a Plan
of Liquidation and a Disclosure Statement for Brickchurch
Enterprises, Inc.
The Debtor is the owner of a luxury residential estate (the
"Debtor's Beachfront Estate" or "Property") located at 366 Gin
Lane, Southampton, New York, 11968.
The Debtor commenced the Chapter 11 case on the Petition Date to
forestall foreclosure litigation initiated by its then secured
lenders, refinance its secured debt and/or sell its Property in an
orderly fashion with the benefit of the protections of the
Bankruptcy Code.
Bay Point, among other things, provided the Debtor DIP financing of
$62 million.
On January 23, 2023, the Debtor filed a letter with the Court
confirming that (i) the remaining DIP Loan proceeds, following the
payment to JGB, were sufficient to pay all allowed claims of the
Debtor's other prepetition creditors and certain administrative
expenses in the Debtor's case; (ii) the Debtor intended to file an
amended chapter 11 plan of reorganization that would provide for
the sale of the Debtor's property and/or the refinancing of the DIP
Loan, and would pay all prepetition claims of creditors and
administrative expenses in full; and (iii) the Debtor intended to
use the sale and/or refinancing proceeds to pay the claims of Bay
Point in full on the maturity date of the DIP Loan.
The Plan provides for the orderly liquidation of the assets of the
Debtor through a sale in accordance with section 363 of the
Bankruptcy Code (the "Sale"), following a marketed sale process for
the Debtor's real property and improvements located at 366 Gin
Lane, Southampton, New York (Block 01.00; Lot 017.014) (the "366
Gin Property"). Proceeds generated from the Sale will be
distributed to Creditors of the Debtor's estate holding Allowed
Claims in the order of priority established by the Bankruptcy Code;
provided, however, if there are insufficient sale proceeds to
satisfy allowed administrative and priority claims, Bay Point will
advance funds to cover such insufficiency.
Any Successful Purchaser, or its nominee, shall take title to the
Property, free and clear of all Liens, Claims and encumbrances,
other than permitted encumbrances accepted by the Successful
Purchaser.
Class 2 consists of Unsecured Claims. Subject to the provisions of
Article VII of the Plan with respect to Disputed Claims, in full
and final satisfaction of Unsecured Claims, the holder of each
Claim, to the extent allowed, shall share Pro Rata in the remaining
balance of the Net Sale Proceeds realized from the sale of the
Brickchurch Property after payment in full of Bankruptcy Fees, the
DIP Obligations, the Bay Point Exit Advances, Administrative
Claims, Post-Petition Administrative Tax Claims, Other Priority
Claims, Priority Tax Claims, and Professional Fee Claims. Class 2
is unimpaired.
The allowed unsecured claims total $10,000,000. Holders of general
unsecured claims in Class 2 are impaired and their projected
recovery is still "to be determined", according to the Disclosure
Statement.
Class 3 consists of Equity Interests. Except to the extent that an
Interest Holder agrees to less favorable treatment, all Interest
Holders shall retain the value of their Interests that may exist in
the Debtor, including the right to receive the remaining balance of
the Net Sale Proceeds, if any, after payment in full of the allowed
amount of the Unsecured Claims. Interests in the Debtor shall not
be extinguished, and the Debtor shall remain responsible for either
managing or winding down its own affairs, without interfering with
the Disbursing Agent's performance under the Plan. Class 3 is
unimpaired.
The Plan shall be implemented through the Bay Point Exit Advances
and the Sale Transaction. The Disbursing Agent shall use Net Sale
Proceeds to make all of the payments required to be made under the
Plan, in the order of priority specified in the Plan.
In the event, and to the extent, there are insufficient Net Sale
Proceeds to make payments required to be made on the Distribution
Date, Bay Point shall on the Effective Date make Bay Point Exit
Advances in such amounts as may be required to (A) fund the
Estimated Professional Fee Reserve; (B) pay Allowed Post-Petition
Administrative Tax Claims; (C) pay Allowed Administrative Claims,
other than (i) Professional Fee Claims, (ii) Post-Petition
Administrative Tax Claims, and (iii) the DIP Obligations and Bay
Point Exit Advances; (D) pay Allowed Priority Tax Claims, if any;
(E) pay Allowed Other Priority Claims in Class 1, if any; (F) fund
the Disputed Claims Reserve for each Disputed Claim in clauses (B)
through (E) above; and (G) pay Bankruptcy Fees and fund the
Bankruptcy Fees Reserve.
The Plan Proponent shall implement the Sale Transaction pursuant to
sections 363 and 1123(a)(5)(D) of the Bankruptcy Code. Within 10
days following the Confirmation Date, the Plan Proponent shall
serve upon all creditors and other parties in interest identified
on the matrix maintained by the Bankruptcy Court for notice
purposes, the Bid Procedures to be followed in connection with the
Sale Transaction, including (i) the procedures to be followed in
the determination of qualified bidders, (ii) the selection of a
stalking horse bidder, (iii) the timeline for receiving bids and
scheduling a public auction, (iv) the recognition of Bay Point's
right to credit bid, and (v) the scheduling of a hearing to approve
the Sale Transaction.
A full-text copy of the Disclosure Statement dated May 22, 2023 is
available at https://urlcurt.com/u?l=TvDXOJ from PacerMonitor.com
at no charge.
Counsel for Bay Point Capital:
THOMPSON HINE LLP
John C. Allerding, Esq.
3900 Key Center
127 Public Square
Cleveland, Ohio 44114
Tel: (216) 566-5500
Fax: (216) 566-5800
Email: John.Allerding@ThompsonHine.com
About Brickchurch Enterprises
Brickchurch Enterprises Inc. is the fee simple owner of a
residential single-family guest house which is part of a four-acre
residential ocean-front estate property compound. The property,
which is located at 366 Gin Lane Southampton, N.Y., has an
appraised value of $63 million.
Brickchurch sought Chapter 11 bankruptcy protection (Bankr.
E.D.N.Y. Case No. 22-70914) on May 1, 2022, listing $50 million to
$100 million in both assets and liabilities. Louise Blouin,
Brickchurch director, signed the petition.
The case is assigned to Judge Alan S. Trust.
Craig D. Robins, Esq., at the Law Offices of Craig D. Robins, is
the Debtor's counsel.
CAN B CORP: Incurs $1.7 Million Net Loss in First Quarter
---------------------------------------------------------
Can B Corp. filed with the Securities and Exchange Commission its
Quarterly Report on Form 10-Q disclosing a net loss of $1.74
million on $939,305 of total revenues for the three months ended
March 31, 2023, compared to a net loss of $3.48 million on $1.86
million of total revenues for the three months ended March 31,
2022.
As of March 31, 2023, the Company had $15.58 million in total
assets, $13.12 million in total liabilities, and $2.45 million in
total stockholders' equity.
As of March 31, 2023, the Company had cash and cash equivalents of
$196,248 and negative working capital of $3,697,941. For the three
months ended March 31, 2023 and 2022, the Company had incurred
losses, respectively. The Company said these factors raise
substantial doubt as to the Company's ability to continue as a
going concern.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1509957/000149315223018575/form10q.htm
About Can B Corp
Headquartered in Hicksville New York, Canbiola, Inc. (now known as
Can B Corp) -- http://www.canbiola.com-- develops, manufactures
and sells products containing cannabinoids derived from hemp
biomass and the licensing of durable medical devises.
Can B Corp. reported a net loss of $14.92 million for the year
ended Dec. 31, 2022, compared to a net loss of $12.17 million for
the year ended Dec. 31, 2021. As of Dec. 31, 2022, the Company had
$15.56 million in total assets, $12.86 million in total
liabilities, and $2.70 million in total stockholders' equity.
Lakewood, CO-based BF Borgers CPA PC, the Company's auditor since
2021, issued a "going concern" qualification in its report dated
April 17, 2023, citing that the Company's significant operating
losses raise substantial doubt about its ability to continue as a
going concern.
CAREVIEW COMMUNICATIONS: Incurs $6 Million Net Loss in 2022
-----------------------------------------------------------
Careview Communications, Inc. filed with the Securities and
Exchange Commission its Annual Report on Form 10-K disclosing a net
loss of $6.04 million on $7.90 million of total revenues for the
year ended Dec. 31, 2022, compared to a net loss of $10.08 million
on $7.80 million of total revenues for the year ended Dec. 31,
2021.
As of Dec. 31, 2022, the Company had $3.95 million in total assets,
$80.61 million in total liabilities, and a total stockholders'
deficit of $76.66 million.
Somerset, New Jersey-based Rosenberg Rich Baker Berman P.A., the
Company's auditor since 2022, issued a "going concern"
qualification in its report dated May 19, 2023, citing that the
Company has suffered recurring losses from operations and has
accumulated losses since inception that raise substantial doubt
about its ability to continue as a going concern.
A full-text copy of the Form 10-K is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1377149/000183988223013128/crvw-10k_123122.htm
About CareView Communications
Headquartered in Lewisville, Texas, CareView Communications, Inc.
-- http://www.care-view.com-- is a provider of products and
on-demand application services for the healthcare industry,
specializing in bedside video monitoring, software tools to
improve hospital communications and operations, and patient
education and entertainment packages.
CENTRAL NEW YORK: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Central New York Raceway Park, Inc.
145 US Route 11
Central Square, NY 13036
Business Description: The Debtor is a privately-owned corporation,
with its principal place of business in
Central Squaret, New York and its principal
assets located in Oswego County. The Debtor
is in the business of owning and developing
a race track Motorplex and activities
incidental thereto.
Chapter 11 Petition Date: May 30, 2023
Court: United States Bankruptcy Court
Northern District of New York
Case No.: 23-30367
Judge: Hon. Wendy A. Kinsella
Debtor's Counsel: Scott J. Bogucki, Esq.
GLEICHENHAUS, MARCHESE & WEISHAAR, P.C.
930 Convention Tower
43 Court Street
Buffalo, NY 14202
Tel: (716) 845-6446
Fax: (716) 845-6475
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Glenn Donnelly as president.
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/UHOJQFY/Central_New_York_Raceway_Park__nynbke-23-30367__0001.0.pdf?mcid=tGE4TAMA
CHF-DOVER LLC: S&P Affirms 'BB-' Long-Term Rating on Revenue Bonds
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S&P Global Ratings revised its outlook to positive from stable and
affirmed its 'BB-' long-term rating on Kent County, Del.'s series
2018A tax-exempt and 2018B taxable student housing and dining
facility revenue bonds issued on behalf of CHF-Dover LLC, Ala.
"The outlook revision and affirmation reflect our view of a solid
and improving occupancy for fall 2022, which is expected to
generate fiscal 2023's debt service coverage (DSC) of 1.2x," said
S&P Global Ratings credit analyst Vicky Stavropoulos.
CINEWORLD GROUP: Expects to Exit Chapter 11 in July 2023
--------------------------------------------------------
Rick Archer of Law360 reports that movie theater chain Cineworld
said Thursday, May 25, 2023, it expects to exit Chapter 11 in July,
with a Texas bankruptcy judge agreeing to extend the case timeline
to facilitate what the company says is a pending deal with theater
ad contractor National CineMedia.
The United States Bankruptcy Court for the Southern District of
Texas entered an Order (I) Resetting the Combined Hearing Date and
(II) Extending Certain Deadlines Related Thereto, establishing June
28, 2023, at 9:00 a.m. (prevailing Central Time), as the Combined
Hearing Date and extending the following deadlines:
* Plan Supplement Filing Deadline: from May 26, 2023 to June 6,
2023
* Deadline to File Voting Report: From June 11, 2023, at 12:00
p.m. to June 15, 2023, at 12:00 p.m.
About National Cinemedia
National CineMedia Inc. (NCM) is a cinema advertising network in
the U.S. NCM's Noovie pre-show is presented exclusively in 47
leading national and regional theater circuits including AMC
Entertainment Inc. (NYSE:AMC), Cinemark Holdings, Inc. (NYSE:CNK)
and Regal Entertainment Group (a subsidiary of Cineworld Group PLC,
LON: CINE). NCM's cinema advertising network offers broad reach
and audience engagement with over 20,100 screens in over 1,600
theaters in 195 Designated Market Areas (all of the top 50). NCM
Digital and Digital-Out-Of-Home (DOOH) go beyond the big screen,
extending in-theater campaigns into online, mobile, and place-based
marketing programs to reach entertainment audiences. National
CineMedia, Inc. (NASDAQ:NCMI) owns a 48.3% interest in, and is the
managing member of, National CineMedia, LLC. On the Web:
HTTP://www.ncm.com/ and HTTP://www.noovie.com/
As of Sept. 29, 2022, the Company had $775.4 million in total
assets, $1.23 billion in total liabilities, and a total deficit of
$453.8 million.
* * *
As reported by the TCR on March 21, 2023, S&P Global Ratings
lowered its issuer credit rating on National CineMedia Inc. (NCM)
to 'D' from 'CCC-'. NCM missed the interest payment due Feb. 15,
2023, on its 5.75% unsecured notes due 2026. While the company has
extended its grace period to 47 days, it failed to pay this
interest obligation within 30 calendar days. S&P said, "Therefore,
we view this as an event of default. NCM is using the extended
grace period to negotiate with its lenders. No cross-default
provisions are currently active under its credit agreements.
However, we expect it will likely engage in an in- or out-of-court
restructuring."
About Cineworld Group
London-based Cineworld Group PLC was founded in 1995 and is the
world's second-largest cinema chain. Cineworld operates 751 sites
with 9,000 screens in 10 countries, including the Cineworld and
Picturehouse screens in the UK and Ireland, Yes Planet in Israel,
and Regal Cinemas in the United States.
According to The Guardian, the Griedinger family, including Mooky's
brother and deputy chief executive, Israel, have struggled to
maintain control of the ailing business but have been forced to
reduce their stake from 28% in recent years. Cineworld's top five
investors include the Chinese Jangho Group at 13.8%, Polaris
Capital Management (7.82%), Aberdeen Standard Investments (4.98%)
and Aviva Investors (4.88%).
The London-listed Cineworld, which has run up debt of more than
$4.8 billion after losses soared during the pandemic, is pinning
its hopes on a meatier slate of movies in 2022 to bounce back from
a two-year lull.
Cineworld Group plc and 104 affiliates sought Chapter 11 protection
(Bankr. S.D. Texas Lead Case No. 22-90168) on Sept. 7, 2022,
estimating more than $1 billion in assets and debt. Judge Marvin
Isgur oversees the cases.
The Debtors tapped Kirkland & Ellis, LLP and Jackson Walker, LLP as
bankruptcy counsels; PJT Partners, LP as investment banker;
AlixPartners, LLP as restructuring advisor; and Ernst & Young, LLP
as tax services provider. Kroll Restructuring Administration, LLC
is the claims agent.
The U.S. Trustee for Region 7 appointed an official committee of
unsecured creditors in the Debtors' Chapter 11 cases on Sept. 23,
2022. The committee tapped Weil, Gotshal & Manges, LLP and
Pachulski Stang Ziehl & Jones, LLP as legal counsels; FTI
Consulting, Inc., as financial advisor; and Perella Weinberg
Partners, LP as investment banker.
CLAREHOUSE LIVING: No Decline in Patient Care, 8th PCO Report Says
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Melanie McNeil, Esq., the court-appointed patient care ombudsman,
filed with the U.S. Bankruptcy Court for the Northern District of
Georgia an eighth report regarding the quality of patient care
provided at Clarehouse Living, Inc.'s personal care homes in Powder
Springs, Ga.
The PCO on May 14 visited the two facilities operated by Clarehouse
Living and reported as follows:
* The OR visited with twelve residents, and direct care staff.
Residents were satisfied with their care. The OR received no
complaints. Residents related that they feel they can speak openly
with the owner, the staff, and the OR. Residents stated that the
staff are responsive to them. No decline in care was noted.
* The OR visited with two residents, and direct care staff. No
complaints were made. The OR noted that staff seemed uncomfortable
with the OR. Residents were satisfied with the quality of care and
were comfortable speaking with the OR. They had adequate food and
supplies. The facility looked good. No decline in care was noted.
The PCO is not aware of any significant change in facility
conditions or decline in resident care for these personal care
homes since her appointment.
A copy of the eighth ombudsman report is available for free at
https://urlcurt.com/u?l=mst0uD from PacerMonitor.com.
About Clarehouse Living
Clarehouse Living, Inc. is an operator of a licensed personal care
home for elderly or disabled residents in Georgia.
Clarehouse Living sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Ga. Case No. 22-50035) on Jan. 3,
2022, with up to $1 million in both assets and liabilities. Judge
Lisa Ritchey Craig oversees the case.
Ian M. Falcone, Esq., at Falcone Law Firm, PC is the Debtor's
counsel.
Melanie S. McNeil, Esq., is the patient care ombudsman appointed in
the Debtor's case.
CLAUSEN OYSTERS: Hits Chapter 11 Bankruptcy Protection
------------------------------------------------------
Clausen Oysters LLC filed for chapter 11 protection in the District
of Oregon.
The Debtor is a member-managed Oregon limited liability company
owned by one member: Haynes Inlet, LLC ("HIL"). HIL is managed by
two of its members, Seth Silverman and Patrick Glennon, who also
manage the affairs of the Debtor.
The Debtor is an oyster grower, operating out of its facility in
North Bend, Oregon. The Debtor grows and harvests oysters on its
property, and on wetland property it leases from Coos County and
the Port of Coos Bay.
The Debtor's sources of revenue are from oyster sales and operation
of a restaurant/deli on its business premises. To generate those
revenues, Debtor has payroll costs, inventory costs to reseed
oysters for future harvest, fuel, maintenance, freight, and other
expenses.
According to court filings, Clausen Oysters LLC estimates between
$1 million and $10 million in debt owed to 1 to 49 creditors. The
petition states that funds will be available to unsecured
creditors.
About Clausen Oysters
Clausen Oysters LLC owns an oyster farm in the State of Oregon.
Clausen Oysters LLC filed a petition for relief under Chapter 11 of
the Bankruptcy Code (Bankr. D. Ore. Case No. 23-60847) on May 19,
2023. In the petition filed by Seth Silverman, as manager, the
Debtor reported assets and liabilities between $1 million and $10
million each.
The case is overseen by Honorable Bankruptcy Judge Thomas M. Renn.
The Debtor is represented by:
Nicholas J. Henderson, Esq.
Motschenbacher & Blattner, LLP
66234 North Bay Road
North Bend, OR 97459
Tel: (503) 417-0500
CLAUSEN OYSTERS: Seeks Cash Collateral Access
---------------------------------------------
Clausen Oysters, LLC asks the U.S. Bankruptcy Court for the
District of Oregon for authority to use cash collateral and provide
adequate protection. Specifically, the Debtor requires the use of
income from the sale of inventory to pay the Debtor's operating
expenses.
The entities that may assert liens in the cash collateral, which
consist of rents from the Debtor's real property, are Lilli
Clausen, Kim Stoltz, Steven Clausen and David Clausen, Ocean Empire
Seafood, Inc., Internal Revenue Service, and Capitus.
The Debtor proposes to use cash collateral of $349,801 from the
present to and including September 22, 2023, on the terms set forth
in the proposed Order Authorizing Use of Cash Collateral.
The Debtor further proposes that the authority to use cash
collateral be limited to the cumulative amounts and uses of cash
collateral as set forth in the Budget, with a 10% variance.
As adequate protection, the Debtor proposes to grant to each of the
secured creditors:
a. A replacement lien on all of the post-petition property of
the same nature and kind in which each of them has a pre-petition
line or security interest. The replacement liens will have the same
relative priority vis-a-vis one another as existed on the petition
date with respect to the original liens.
b. The Debtors will timely perform and complete all actions
necessary and appropriate to protect Lien Creditors' collateral
against diminution in value.
c. The Debtor will make adequate protection payments of $7,500
per month to the Clausen Family beginning on July 1, 2023, and on
the 1st of each consecutive month during the Budget Period. The
payments are to be held by the Clausen Family as additional
collateral and only applied under the terms of a further Court
order or the terms of a confirmed Plan of Reorganization.
All other Lien Creditors will be adequately protected by receiving
a replacement lien on similar collateral they have now, with the
same relative priority vis-a-vis one another as existed on the
petition date. The Debtor's revenues from sale of inventory will be
used to pay operating expenses, preserving the value of the
business as a going concern.
A hearing on the matter is set for May 31, 2023 at 3 p.m.
A copy of the motion is available at https://urlcurt.com/u?l=HrWcWY
from PacerMonitor.com.
About Clausen Oysters, LLC
Clausen Oysters, LLC owns an oyster farm in the State of Oregon.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Ore. Case No. 23-60847) on May 18, 2023.
In the petition signed by Seth Silverman, manager, the Debtor
disclosed up to $10 million in both assets and liabilities.
Thomas M. Renn oversess the case.
Nicholas J. Henderson, Esq., at MOTSCHENBACHER & BLATTNER, LLP,
represents the Debtor as legal counsel.
COLUMBIA ASTHMA: PCO Reports No Change in Patient Care Quality
--------------------------------------------------------------
Tamar Terzian, the patient care ombudsman, filed with the U.S.
Bankruptcy Court for the Central District of California a second
interim report regarding the health care facility operated by
Columbia Asthma & Allergy Clinic I, PC.
The PCO conducted a visit physically on site. For each location,
PCO discussed with the supervising staff the systems in place and
observed patient care. Overall, the clinics were clean, staffed and
had supplies, including personal protective equipment that the
clinic continue to use post-Covid-19 pandemic, according to the
report which covers the period April 11 to June 11, 2023.
The PCO recommends having a log of all medication stored on site
and a regularly discarding any expired medications. There are no
changes to report currently in terms of the quality of care. The
PCO did not observe operational concerns as contemplated by Section
333(b)(3) with potential patient safety implications.
A copy of the second interim ombudsman report is available for free
at https://urlcurt.com/u?l=F9glah from PacerMonitor.com.
The ombudsman may be reached at:
Tamar Terzian, Esq.
Terzian Law Group
315 W. Arden Avenue Suite 28
Glendale, CA 91203
Phone: 818-242-1100
Email: tamar@terzlaw.com
About Columbia Asthma & Allergy Clinic I
Los Angeles-based Columbia Asthma & Allergy Clinic I, PC provides
customized approaches to treating asthma and allergy.
Columbia Asthma & Allergy Clinic filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. C.D. Calif. Case No.
23-10579) on Feb. 1, 2023, with $370,723 in assets and $6,903,223
in liabilities. Gregory Kent Jones has been appointed as Subchapter
V trustee.
Judge Vincent P. Zurzolo oversees the case.
The Law Offices of Michael Jay Berger is the Debtor's legal
counsel.
The U.S. Trustee for Region 16 appointed Tamar Terzian as patient
care ombudsman in the Debtor's Chapter 11 case.
COMIC RELIEF: Seth Albin Named Subchapter V Trustee
---------------------------------------------------
Daniel Casamatta, Acting U.S. Trustee for Region 13, appointed Seth
Albin, Esq., as Subchapter V trustee for Comic Relief, Inc.
Mr. Albin, a member of Summers Compton Wells, LLC, will be paid an
hourly fee of $295 for his services as Subchapter V trustee and
will be reimbursed for work-related expenses incurred.
Mr. Albin declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Mr. Seth A. Albin
Summers Compton Wells, LLC
903 S. Lindbergh, Ste. 200
St. Louis, MO 63131
(314) 991-4999 office
(314) 872-0390 fax
Email: salbin@summerscomptonwells.com
About Comic Relief
Comic Relief, Inc. filed a petition under Chapter 11, Subchapter V
of the Bankruptcy Code (Bankr. E.D. Mo. Case No. 23-41696) on May
12, 2023, with $100,001 to $500,000 in assets and $500,001 to $1
million in liabilities. Judge Brian C. Walsh oversees the case.
The Debtor is represented by Thomas H. Riske, Esq., at Carmody
Macdonald, P.C.
CONCRETE SOLUTIONS: Has Deal on Cash Collateral Access
------------------------------------------------------
Concrete Solutions & Supply and MUFG Union Bank, N.A. advised the
U.S. Bankruptcy Court for the Central District of California,
Northern Division, that they have reached an agreement regarding
the Debtor's use of cash collateral and now desire to memorialize
the terms of this agreement into an agreed order.
The Debtor assumes that MUFG Union Bank, N.A. holds the senior
interest in the Debtor's monies and receivables and other personal
property that would be cash collateral.
The parties agreed that the Debtor may use cash collateral in
accordance with the budget, with a 15% variance.
The Debtor will make monthly adequate protection payments to the
bank in the amount of $1,500 due the 15th day of each month at a
physical or electronic address specified by the bank. If the
Debtor's bank charges a fee to do an electronic payment, then the
Debtor may pay the adequate protection payment by physical check to
an address provided by the bank.
MUFG Union Bank is to be granted replacement liens in the Debtor's
assets to the extent the bank's prepetition liens attached to
property of the Debtor prepetition and with the same validity,
priority, and description of collateral. The parties agree that the
Debtor is not waiving any challenges it may have to the bank's
security interest.
A hearing on the matter was set for May 30, 2023 at 2 p.m. On
Tuesday, the Court held that the hearing date is continued to Nov.
21 at 2:00 p.m.
A copy of the stipulation is available at
https://urlcurt.com/u?l=HuaR4O from PacerMonitor.com.
About Concrete Solutions & Supply
Concrete Solutions & Supply sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No.
9:23-bk-10314-RC) on April 25, 2023. In the petition signed by
Alton Anderson, president, the Debtor disclosed up to $500,000 in
assets and up to $1 million in liabilities.
Steven R. Fox, Esq., at The Fox Law Corporation Inc., represents
the Debtor as legal counsel.
The Hon. Ronald A Clifford, III, is the case judge.
CORE SCIENTIFIC: Wants to Emerge from Chapter 11 by September
-------------------------------------------------------------
Elizabeth Napolitano of Coin Desk reports that Core Scientific
hopes to emerge from bankruptcy by September 2023, its lawyers
say.
Core Scientific should "trim" its restructuring timeline by "at
least [one] month," the federal judge overseeing its bankruptcy
said during a Monday hearing as creditors called for the insolvent
crypto miner to fast-track its plans to emerge from Chapter 11
bankruptcy.
Core Scientific's counsel said the miner could reach a
reorganization plan by Sept. 25, 2023. That target date accounts
for a 90-day exclusivity extension the company recently received to
formulate a plan to pay down its debt. U.S. Bankruptcy Judge David
R. Jones, of the Southern District of Texas, said the company could
still "expedite" the process to appease its creditors.
"To the extent that people are wanting... [a] faster, sooner
have-it-done-yesterday type of approach, you can certainly expedite
the process," he said.
The firm's creditors have quibbled for months over Core
Scientific's bankruptcy proceedings. The proceedings, which began
in December 2022, were slated to last just six months but appear
poised to drag on for the better part of a year – a fact that has
ruffled some feathers among the firm's long list of creditors.
Thomas Bean, who represents creditor MassMutual, objected to Core
Scientific's request for an extension, arguing it would
"incentivize [Core Scientific] to slow walk the case."
"The debtor has been using our collateral for the last several
months," Bean said. "[It] has not paid the equipment lenders a
dime."
Core Scientific's counsel, however, argued it required more time to
sketch out a business plan to adapt to the shifting realities of a
volatile crypto mining landscape that has seen bitcoin prices and
hash rates rise as electricity prices fall.
That confluence of factors has made mining more profitable,
allowing Core Scientific to generate more revenue to pay down $6
million of its debt, said Ronit Berkovich, an attorney for the
debtors.
Given those conditions and the length of its tenure in the crypto
industry, Core Scientific has a duty to respond more quickly to the
shifting sands of the crypto industry, said Jared Roche, a lawyer
for 36th Street Capital and several other creditors.
"The debtor says they need time to address evolving business
conditions in the industry, but this is the nature of the crypto
industry right now," Roche said. "It is an immature industry that
is always evolving."
Once the crypto industry's largest mining company, Core Scientific
suffered an astounding, and swift, fall from grace last November
2022, when bitcoin prices cratered amid cryptocurrency exchange
FTX's mid-November implosion. The company went public with a $4.3
billion valuation in 2021, but its market capitalization had fallen
to $78 million by the time it filed for bankruptcy last December
2022.
About Core Scientific
Core Scientific, Inc. (OTCMKTS: CORZQ) is the largest U.S.
publicly-traded Bitcoin mining company in computing power. Core
Scientific, which was formed following a business combination in
July 2021 with blank check company XPDI, is a large-scale operator
of dedicated, purpose-built facilities for digital asset mining
colocation services and a provider of blockchain infrastructure,
software solutions and services. Core mines Bitcoin, Ethereum and
other digital assets for third-party hosting customers and for its
own account at its six fully operational data centers in North
Carolina (2), Georgia (2), North Dakota (1) and Kentucky (1). Core
was formed following a business combination in July 2021 with XPDI,
a blank check company.
In July 2022, one of the Company's largest customers, Celsius
Mining LLC, filed for Chapter 11 bankruptcy in New York. With low
Bitcoin prices depressing mining revenue to a record low, Core
Scientific first warned in October 2022 that it may have to file
for bankruptcy if the company can't find more funding to repay its
debt that amounts to over $1 billion. Core Scientific did not make
payments that came due in late October and early November 2022 with
respect to several of its equipment and other financings, including
its two bridge promissory notes.
Core Scientific and its affiliates filed petitions for relief under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Texas Lead Case No.
22-90341) on Dec. 21, 2022. As of Sept. 30, 2022, Core Scientific
had total assets of US$1.4 billion and total liabilities of US$1.3
billion.
Judge David R. Jones oversees the cases.
The Debtors hired Weil, Gotshal & Manges, LLP as legal counsel; PJT
artners, LP as investment banker; and AlixPartners, LLP as
financial advisor. Stretto is the claims agent.
A group of Core Scientific convertible bondholders is working with
restructuring lawyers at Paul Hastings. Meanwhile, B. Riley
Commercial Capital, LLC, as administrative agent under the
Replacement DIP facility, is represented by Choate, Hall & Stewart,
LLP.
On Jan. 9, 2023, the U.S. Trustee for Region 7 appointed an
official committee to represent unsecured creditors in the Debtors'
Chapter 11 cases. The committee tapped Willkie Farr & Gallagher,
LLP as legal counsel and Ducera Partners, LLC as investment
banker.
The U.S. Trustee for Region 7 appointed an official committee of
equity security holders. The equity committee is represented by
Vinson & Elkins, LLP.
CORNER BAKERY: Wants to Pursue $12 Million Bankruptcy Sale
----------------------------------------------------------
Alex Wolf of Bloomberg Law reports that fast casual restaurant
chain Corner Bakery reached a deal to sell its assets out of
bankruptcy for at least $12 million to an affiliate of investment
firm Wexford Capital LP.
CBC Restaurant Corp. asked the US Bankruptcy Court for the District
of Delaware on Friday, May 19, 2023, to approve its "stalking
horse" agreement with Connecticut-based Wexford, which would lock
in a bidding floor at a May 30 auction for the chain's assets.
The offer includes $12 million in cash, plus up to $1.2 million
more to cover Corner Bakery's Chapter 11 wind-down expenses and
prepaid rent adjustments.
About CBC Restaurant
CBC Restaurant Corp. and its affiliates operate and franchise
quick-casual eateries under the name Corner Bakery Cafe.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Lead Case No. 23-10245) on Feb. 22,
2023. In the petition signed by its chief executive officer and
chief operating officer, Jignesh Pandya, CBC Restaurant disclosed
$10 million to $50 million in both assets and liabilities.
Judge Karen B. Owens oversees the cases.
The Debtors tapped Mette H. Kurth, Esq., at Culhane Meadows PLLC as
legal counsel and Hilco Trading LLC d/b/a Hilco Global as financial
advisor and investment banker. Kurtzman Carson Consultants, LLC is
the Debtors' administrative advisor and claims agent.
On March 20, 2023, Andrew Vara, Acting U.S. Trustee for Regions 3
and 9, appointed an official committee of unsecured creditors in
these Chapter 11 cases. The committee appointed Tucker Ellis, LLP
as lead bankruptcy counsel; Potter Anderson & Corroon, LLP as local
counsel; and Berkeley Research Group, LLC as financial advisor.
CREDITO REAL: Will Seek Bond Votes for $1.9 Bil. Liquidation Deal
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Steven Church of Bloomberg News reports that Credito Real SAB, once
the biggest payroll lender in Mexico, will try to sign up a
majority of unsecured creditors to a deal that would restructure
more than $1.9 billion in notes, attorneys told a US bankruptcy
judge.
The proposal would end a court battle between the company and a
bond group over whether the lender should go bankrupt in the US or
Mexico. Should more than 50% of unsecured creditors agree to the
proposal in the next 60 days, the company will finish liquidating
itself in Mexico under a pre-packaged bankruptcy case, Credito Real
attorney John Cunningham said.
About Credito Real SAB
Credito Real SAB de CV SOFOM ENR is a Mexico-based company that
provides consumer financing. Credito is Mexico's biggest payroll
lender and second largest non-bank lender after Real Unifin.
Credito Real provides loans, either by providing direct financing
to consumers or by establishing financing programs with consumer
financing dealers that sell to Credito Real the collection rights
from consumer financing products. It also provides financing
directly to individuals that are employed by corporations with
payroll deduction agreements with consumer financing dealers
authorized by Credito Real. Credito Real operates through a number
of subsidiaries, including AFS Acceptance LLC.
Three alleged creditors signed a petition to send Credito Real to
Chapter 11 bankruptcy on June 22, 2022 (Bankr. S.D.N.Y. Case No.
22-10842). Institutional Multiple Investment Fund LLC, of Boston,
Massachusetts; Banco Monex, S.A., of Mexico, and Solitaire Fund, of
Liechtenstein, who claim to own an aggregate $8 million of
unsecured bond debt, signed the involuntary Chapter 11 petition.
David H. Botter, Esq., at Akin Gump Strauss Hauer & Feld LLP is
advising the three bondholders.
CRYPTO CO: Incurs $2.8 Million Net Loss in First Quarter
--------------------------------------------------------
The Crypto Company filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $2.77 million on $156,893 of services revenue for the three
months ended March 31, 2023, compared to a net loss of $2.48
million on $142,512 of services revenue for the three months ended
March 31, 2022.
As of March 31, 2023, the Company had $1.38 million in total
assets, $5.02 million in total liabilities, and a total
stockholders' deficit of $3.64 million.
The Company has incurred significant losses and experienced
negative cash flows since inception. As of March 31, 2023, the
Company had cash of $16,677. The Company had a working capital
deficit of $4,804,595. As of March 31, 2023, the accumulated
deficit amounted to $42,302,767. As a result of the Company's
history of losses and financial condition, there is substantial
doubt about the ability of the Company to continue as a going
concern.
Crypto said, "The ability to continue as a going concern is
dependent upon the Company generating profitable operations in the
future and/or obtaining the necessary financing to meet its
obligations and repay its liabilities arising from normal business
operations when they come due. Management is evaluating different
strategies to obtain financing to fund the Company's expenses and
achieve a level of revenue adequate to support the Company's
current cost structure. Financing strategies may include, but are
not limited to, private placements of capital stock, debt
borrowings, partnerships and/or collaborations. There can be no
assurance that any of these future-funding efforts will be
successful. The consolidated financial statements do not include
any adjustments relating to the recoverability and classification
of recorded asset amounts or the amounts and classification of
liabilities that might result from the outcome of this
uncertainty."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1688126/000149315223018535/form10-q.htm
About Crypto Company
Malibu, Calif.-based The Crypto Company -- www.thecryptocompany.com
-- is engaged in the business of providing consulting services and
education for distributed ledger technologies, for the building of
technological infrastructure, and enterprise blockchain technology
solutions.
Crypto Company reported a net loss of $5.66 million in 2022, a net
loss of $785,630 in 2021, and a net loss of $2.82 million in 2020.
As of Dec. 31, 2022, the Company had $1.56 million in total assets,
$4.62 million in total liabilities, and a total stockholders'
deficit of $3.06 million.
Lakewood, CO-based BF Borgers CPA PC, the Company's auditor since
2019, issued a "going concern" qualification in its report dated
April 14, 2023, citing that the Company has suffered recurring
losses from operations that raises substantial doubt about its
ability to continue as a going concern.
DAVID'S BRIDAL: Court OKs $85MM DIP Loan from Bank of America
-------------------------------------------------------------
The U.S. Bankruptcy Court for the District of New Jersey authorized
David's Bridal, LLC and its debtor-affiliates to use cash
collateral and obtain postpetition financing on a final basis.
The Debtors are permitted to enter into the Senior Secured,
Super-Priority Debtor-in-Possession ABL Credit Agreement with Bank
of America, N.A., as Administrative Agent, Collateral Agent, and
L/C Issuer, 1903P Loan Agent, LLC, as FILO Agent, 1903 Partners,
LLC, as FILO Term Loan Lender, and the other lenders thereunder.
Bank of America, N.A. is the Prepetition ABL Agent, 1903P Loan
Agent, LLC is the Prepetition FILO Agent, and 1903P Partners, LLC
is the Prior FILO Term Loan Lender under the prepetition Amended
and Restated ABL Credit Agreement, dated as of November 26, 2019.
The DIP Facility is a senior secured superpriority revolving
facility of up to $85 million in the aggregate principal amount,
consisting of (x) $75 million in revolving commitments and (y) $10
million in "first in, last out," term loan commitments, provided by
the DIP ABL Agent and the DIP FILO Agent, respectively, with up to
$10 million of new money available immediately upon entry of the
Interim Order.
The DIP Facility contains a "creeping" roll-up of Prepetition ABL
Obligations through the entry of the Final Order, at which time all
remaining outstanding Prepetition ABL Obligations will convert to
the DIP Obligations. Additionally, the DIP Facility provides for
the consensual use of the Prepetition Secured Parties' cash
collateral in accordance with the Budget.
The DIP Facility will mature on the earliest to occur of:
(a) August 31, 2023;
(b) the date of termination of all of Commitments;
(c) the date on which the Obligations become due and payable
pursuant to the DIP Credit Agreement, whether by acceleration or
otherwise;
(d) the effective date of a Plan of Reorganization for the
Debtors;
(e) the date of a sale of all or substantially all of the
Debtors' assets under Section 363 of the Bankruptcy Code;
(f) the first business day on which the Interim Order expires
by its terms or is terminated, unless the Final Order has been
entered and become effective prior thereto;
(g) the Final Order is vacated, terminated, rescinded,
revoked, declared null and void or otherwise ceases to be in full
force and effect;
(h) conversion of any of the Chapter 11 Cases to a case under
Chapter 7 of the Bankruptcy Code or any Loan Party will file a
motion or other pleading seeking the conversion of the Chapter 11
Cases to Chapter 7 of the Bankruptcy Code, unless otherwise
consented to in writing by the Administrative Agent and the
Required Lenders; and
(i) dismissal of any of the Chapter 11 Cases, unless otherwise
consented to in writing by the Administrative Agent and the
Required Lenders.
The Debtors requires the use of the proceeds of the DIP Facility
and cash collateral to, among other things fund operations.
The Debtors are required to comply with these milestones:
1. On or before 38 days after the Petition Date, the Debtors
will have obtained the Final Order;
2. On or before 38 days after the Petition Date, the Debtors
will have obtained, in form and substance acceptable to the DIP
Agents, (i) a final order authorizing the Debtors to assume the
Debtors' consulting agreement with a nationally recognized retail
liquidator that is reasonably acceptable to the DIP Agent and the
Prepetition ABL Agent and conduct the store closing sales
contemplated thereunder, and (ii) a second interim order
authorizing the Debtors to use and continue to operate the cash
management system, in each case, on terms and conditions
satisfactory to the DIP Agents;
3. On or before June 14, 2023, the Debtors will have
consummated a sale or all or substantially all of the DIP Secondary
Collateral; and
4. On or before August 11, 2023, the Debtors will have caused
the DIP Revolving Obligations and the Prepetition Revolving
Obligations to be Paid in Full.
David's Bridal, LLC, DBI Midco, Inc., Blueprint Registry, LLC, and
David's Bridal Canada Inc., the several lenders party thereto, and
Bank of America, N.A., as agent, are each party to the Amended and
Restated ABL Credit Agreement, dated as of November 26, 2019. The
Prepetition ABL Facility is comprised of a $125 million revolving
loan commitment and a $10 million "first-in-last-out" term loan.
The Prepetition FILO Term Loan is contractually subordinated to the
Prepetition ABL Loans under the Prepetition ABL Credit Agreement.
The Prepetition ABL Facility is guaranteed by each of the Debtors
and is secured by liens on substantially all of the Debtors'
assets. The ABL Facility matures in May 2024 and as of the Petition
Date, approximately $37.7 million was outstanding in Prepetition
ABL Loans, approximately $10.1 million was outstanding under the
Prepetition FILO Term Loan, and approximately $16.9 million in
letters of credit had been issued under the Prepetition ABL
Facility.
The Prepetition Loan Parties, the several lenders party thereto,
and Alter Domus (US) LLC as agent, are each party to the Senior
Superpriority Term Loan Credit Agreement, dated as of April 30,
2021. The Prepetition SS Term Loan Facility is guaranteed by each
of the Debtors and is secured by liens on substantially all of the
Debtors' assets. As of the Petition Date, approximately $91.7
million in aggregate principal amount remained outstanding under
the Prepetition SS Term Loan Facility.
The Prepetition Loan Parties, the several lenders party thereto,
and Cantor Fitzgerald Securities, as agent, are each party to the
Superpriority Term Loan Credit Agreement, dated as of June 19,
2020. The Prepetition Superpriority Term Loan Facility is
guaranteed by each of the Debtors and is secured by liens on
substantially all of the Debtors' assets. As of the Petition Date,
approximately $29.3 million in aggregate principal amount remained
outstanding under the Prepetition Superpriority Term Loan
Facility.
The Prepetition Loan Parties, the several lenders party thereto,
and Cantor Fitzgerald as agent, are each party to the First Lien
Term Loan Credit Agreement, dated as of November 26, 2019. The
Prepetition First Lien Term Loan Facility is guaranteed by each of
the Debtors and is secured by liens on substantially all of the
Debtors' assets. As of the Petition Date, approximately $78.2
million in aggregate principal amount remained outstanding under
the Prepetition First Lien Term Loan Facility.
The Prepetition Loan Parties, the several lenders party thereto,
and Cantor Fitzgerald as agent, are each party to the Term Loan
Credit Agreement, dated as of January 18, 2019. The Prepetition
Takeback Term Loan Facility is guaranteed by each of the Debtors
and is secured by liens on substantially all of the Debtors'
assets. As of the Petition Date, approximately $13.8 million in
aggregate principal amount remained outstanding under the
Prepetition Takeback Term Loan Facility.
As adequate protection, the Prepetition Secured Parties are granted
a variety of adequate protection to protect against, and to the
extent of, any postpetition diminution in value of the Prepetition
Collateral, including the cash collateral, resulting from the use,
sale, or lease of the Prepetition Collateral by the Debtors and the
imposition of the automatic stay, including Adequate Protection
Liens, Adequate Protection Superpriority Claims, and Adequate
Protection Payments.
A copy of the order is available at https://urlcurt.com/u?l=5Ysfuu
from PacerMonitor.com.
About David's Bridal
David's Bridal, based in Conshohocken, Pa., and its affiliated
entities are international bridal and special occasion retailers.
They sell a broad assortment of bridal gowns, bridesmaid dresses,
special occasion dresses and accessories. As of April 17, 2023,
David's Bridal operates 294 stores across the United States,
Canada, and United Kingdom and franchise eight stores in Mexico.
David's Bridal, LLC, f/k/a David's Bridal, Inc., and five
affiliates sought Chapter 11 bankruptcy protection (Bankr. D.N.J.
Case No. 23-13131) on April 16, 2023. The Hon. Christine M.
Gravelle presides over the Debtors' cases.
Joshua A. Sussberg, P.C., Christopher T. Greco, P.C., Rachael M.
Bentley, Esq., and Alexandra Schwarzman, P.C., at Kirkland & Ellis
LLP; and Michael D. Sirota, Esq., Felice R. Yudkin, Esq., and
Rebecca W. Hollander, Esq., at Cole Schotz P.C., serve as counsel
to the Debtors.
The Debtors' financial advisor is Berkeley Research Group, LLC;
investment banker is Houlihan Lokey Capital, Inc.; liquidation
consultant is Gordon Brothers Retail Partners, LLC; and claims and
noticing agent is Omni Agent Solutions.
The Debtors listed $100 million to $500 million in both estimated
assets and estimated liabilities. The petitions were signed by
James Marcum as chief executive officer.
Then with over 300 stores, David's Bridal, Inc., and its three
affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case
No. 18-12635) on Nov. 19, 2018. The Hon. Laurie Selber Silverstein
was the case judge. Debevoise & Plimpton LLP served as the
Company's legal advisor, Evercore LLC was the financial advisor and
AlixPartners LLP was the restructuring advisor. In January 2019,
David's Bridal emerged from Chapter 11 bankruptcy and completed its
financial restructuring.
DELCATH SYSTEMS: Incurs $9 Million Net Loss in First Quarter
------------------------------------------------------------
Delcath Systems, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $9 million on $597,000 of total revenues for the three months
ended March 31, 2023, compared to a net loss of $9 million on
$378,000 of total revenues for the three months ended March 31,
2022.
As of March 31, 2023, the Company had $30.60 million in total
assets, $25.31 million in total liabilities, $18.37 million in
mezzanine equity, and a total stockholders' deficit of $13.07
million.
At March 31, 2023, the Company had cash, cash equivalents and
restricted cash totaling $24.3 million, as compared to cash, cash
equivalents and restricted cash totaling $11.8 million at Dec. 31,
2022. During the three months ended March 31, 2023, the Company
used $4.3 million of cash for operating activities and $6.3 million
for principal payments.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/872912/000119312523150523/d438134d10q.htm
About Delcath Systems
Headquartered in New York, NY, Delcath Systems, Inc. --
http://www.delcath.com-- is an interventional oncology company
focused on the treatment of primary and metastatic liver cancers.
The Company's lead product candidate, the HEPZATO KIT (melphalan
hydrochloride for injection/hepatic delivery system), is a
drug/device combination product. HEPZATO is designed to administer
high-dose chemotherapy to the liver while controlling systemic
exposure and associated side effects.
Delcath reported a net loss of $36.51 million for the year ended
Dec. 31, 2022, compared to a net loss of $25.65 million for the
year ended Dec. 31, 2021. As of Dec. 31, 2022, the Company had
$17.86 million in total assets, $23.72 million in total
liabilities, and a total stockholders' deficit of $5.86 million.
New York, NY-based Marcum LLP, the Company's auditor since 2018,
issued a "going concern" qualification in its report dated March
27, 2023, citing that the Company has a significant working capital
deficiency, has incurred significant losses and needs to raise
additional funds to meet its obligations and sustain its
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
DIGITAL CURRENCY: Gemini Considers Forbearance After $630M Default
------------------------------------------------------------------
Prashant Jha of CoinTelegraph reports that troubled cryptocurrency
exchange Gemini is considering a forbearance option against the
Digital Currency Group (DCG), which missed a $630 million repayment
in May 2023.
When a lender grants forbearance, the borrower can temporarily
reduce its mortgage payment or temporarily stop making payments.
The borrower must subsequently pay the reduced or paused payments.
In its updated response, Gemini claimed that the forbearance
consideration would be partly based on whether DCG will engage in
good-faith negotiations on a consensual deal. If an agreement
cannot be reached among the involved parties, Gemini plans to work
with DCG-owned Genesis Capital to suggest terms for an amended plan
of reorganization that could be advanced without DCG’s consensual
participation.
On May 19, 2023, Genesis also filed a motion with the bankruptcy
court seeking to extend its period of exclusivity to propose such a
plan.
The Gemini-DCG repayment saga originated after Genesis filed for
Chapter 11 bankruptcy on Jan. 19, 2023. In February, Gemini
co-founder Cameron Winklevoss threatened to sue DCG and its CEO
Barry Silbert over a $900 million loan repayment.
According to the court filing, Genesis owes over $3.5 billion to
its top 50 creditors, including Gemini, Cumberland, Mirana,
MoonAlpha Finance and VanEck's New Finance Income Fund. The Genesis
settlement process has been marred into controversy from the
beginning.
Genesis and DCG reached an "agreement in principle" with creditors,
and Genesis submitted a full settlement to the bankruptcy court in
February. Creditors were expected to collect 80% of the money they
had lost due to the bankruptcy under the initial settlement
agreement. However, Genesis creditors increased their demands a few
months later, derailing the initial settlement plans.
Gemini has prepared a new "Gemini Master Claim," which the exchange
plans to file by May 22. The new master plan seeks the return of
over $1.1 billion of digital assets that Genesis has failed to
return to some 232,000 Gemini Earn users who had active loans as of
Jan. 19, 2023.
About Digital Currency Group
DCG is the parent company of a conglomerate of digital asset and
blockchain technology companies.
About Genesis Global
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.
ELITE KIDS: Time to File Plan & Disclosures Extended to Sept. 18
----------------------------------------------------------------
Judge Elizabeth S. Stong has entered an order that Elite Kids
Services, Inc.'s time period to file a Chapter 11 Plan of
Reorganization and Disclosure Statement is extended through and
including Sept. 18, 2023.
The extension of the time period granted is without prejudice to
such further requests that may be made pursuant to Section 1121(e)
of the Bankruptcy Code by the Debtors or any party in interest, for
cause shown, upon notice and a hearing.
About Elite Kids Services
Elite Kids Services, Inc. filed a Chapter 11 bankruptcy petition
(Bankr. E.D.N.Y. Case No. 22-42915) on Nov. 22, 2022, with as much
as $1 million in both assets and liabilities. Judge Elizabeth S.
Stong oversees the case.
Alla Kachan, Esq., at the Law Offices of Alla Kachan, PC and Wisdom
Professional Services, Inc., serve as the Debtor's legal counsel
and accountant, respectively.
ETHEMA HEALTH: Incurs $176K Net Loss in First Quarter
-----------------------------------------------------
Ethema Health Corporation filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a
consolidated net loss of $175,717 on $1.30 million of revenues for
the three months ended March 31, 2023, compared to a consolidated
net loss of $164,985 on $1.02 million of revenues for the three
months ended March 31, 2022.
As of March 31, 2023, the Company had $6.60 million in total
assets, $16.04 million in total liabilities, and a total
stockholders' deficit of $9.43 million.
Ethema Health said, "At March 31, 2023 the Company has a working
capital deficiency of $13.4 million, and total liabilities in
excess of assets in the amount of $9.4 million. Management
believes that current available resources will not be sufficient to
fund the Company's planned expenditures over the next 12 months.
These factors, individually and collectively indicate that a
material uncertainty exists that raises substantial doubt about the
Company's ability to continue as a going concern for one year from
the date of issuance of these condensed interim consolidated
financial statements.
"The Company will be dependent upon the raising of additional
capital through placement of common shares, and/or debt financing
in order to implement its business plan and generating sufficient
revenue in excess of costs. If the Company raises additional
capital through the issuance of equity securities or securities
convertible into equity, stockholders will experience dilution, and
such securities may have rights, preferences or privileges senior
to those of the holders of common stock or convertible senior
notes. If the Company raises additional funds by issuing debt, the
Company may be subject to limitations on its operations, through
debt covenants or other restrictions. If the Company obtains
additional funds through arrangements with collaborators or
strategic partners, the Company may be required to relinquish its
rights to certain geographical areas, or techniques that it might
otherwise seek to retain. There is no assurance that the Company
will be successful with future financing ventures, and the
inability to secure such financing may have a material adverse
effect on the Company's financial condition."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/792935/000190359623000455/grst_10q.htm
About Ethema Health
Headquartered in West Palm Beach, Florida, Ethema Health
Corporation -- http://www.ethemahealth.com-- operates in the
behavioral healthcare space specifically in the treatment of
substance use disorders. Ethema developed a unique style of
treatment over the last eight years and has had much success with
in-patient treatment for adults.
Boca Raton, Florida-based Daszkal Bolton LLP, the Company's auditor
since 2018, issued a "going concern" qualification in its report
dated March 31, 2023, citing that the Company has accumulated
deficit of approximately $43.5 million and negative working capital
of approximately $12.7 million at Dec. 31, 2022, which raises
substantial doubt about its ability to continue as a going
concern.
FIRST DEFENSE: Trustee Seeks to Hire Stichter as Counsel
--------------------------------------------------------
Amy Denton Mayer, the post-confirmation trustee appointed in the
Chapter 11 case of First Defense Nasal Screen, Corp., seeks
approval from the U.S. Bankruptcy Court for the Middle District of
Florida to employ Stichter, Riedel, Blain & Postler, PA as her
legal counsel.
The firm will render these services:
(a) investigate and pursue causes of action;
(b) subject to bankruptcy court approval, after notice and
hearing pursuant to section 9019 of the Bankruptcy Code, settle the
causes of action;
(c) if the post-confirmation trustee decides, in her business
judgment not to pursue or, once commenced, continue to pursue, any
causes of action, the post-confirmation trustee may, subject to
bankruptcy court approval, assign such claims to another party
after notice and hearing pursuant to Section 363 of the Bankruptcy
Code;
(d) subject to bankruptcy court approval, after notice and
hearing pursuant to Sections 327, 330, and 331 of the Bankruptcy
Code and Federal Rules of Bankruptcy Procedure 2014 and 2016,
retain professionals to assist with prosecution of the causes of
action, and compensate such professionals; and
(e) make distributions of the proceeds from causes of action
to creditors in accordance with paragraph 4(c) of the confirmation
order and the Bankruptcy Code.
The hourly rates of the firm's counsel and staff are as follows:
Attorneys $300 - $550
Paralegals $125 - $200
In addition, the firm will seek reimbursement for expenses
incurred.
Matthew Hale, Esq., an attorney at Stichter Riedel, 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:
Matthew B. Hale, Esq.
Stichter, Riedel, Blain & Postler, PA
110 East Madison Street, Suite 200
Tampa, FL 33602
Telephone: (813) 229-0144
Email: mhale@srbp.com
About First Defense Nasal Screen
First Defense Nasal Screen Corp. is the developer of the first ever
non-inserted, hypo-allergenic, self-adhering nasal filter. The
company is based in New Port Richey, Fla.
First Defense Nasal Screen Corp filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. M.D. Fla. Case No.
22-01196) on March 25, 2022, disclosing $6,905,214 in total assets
and $6,449,937 in total liabilities.
Judge Caryl E. Delano oversees the case.
Chad Van Horn, Esq., at Van Horn Law Group, PA serves as the
Debtor's counsel.
Amy Denton Harris is appointed as Subchapter V trustee. Stichter,
Riedel, Blain & Postler, PA serves as her counsel.
FKB LLC: Gets OK to Hire Gavin/Solmonese as Asset Sale Advisor
--------------------------------------------------------------
FKB LLC received approval from the U.S. Bankruptcy Court for the
Eastern District of Pennsylvania to employ Gavin/Solmonese, LLC as
asset sale advisor.
The firm will render these services:
(a) seek purchasers for the Debtor's business;
(b) provide for and ensure regular and timely reporting to
parties involved in this Chapter 11 case;
(c) interface with other parties involved in this Chapter 11
case and provide information to such parties, as directed by the
Debtor's management and legal counsel; and
(d) perform other tasks as may be reasonably requested by the
Debtor.
The firm will be compensated as follows:
(a) a sale process fee of $25,000 payable upon approval of
Gavin/Solmonese's retention; and
(b) a transaction fee calculated as 10 percent of the sale
consideration received by the Debtor's bankruptcy estate in excess
of the amount of the stalking horse bid.
Edward Gavin, a managing director at Gavin/Solmonese, 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:
Edward T. Gavin
Gavin/Solmonese, LLC
1007 Orange Street
4th Floor, Suite 461
Wilmington, DE 19801
Telephone: (302) 655-8997
Facsimile: (302) 655-6063
Email: ted.gavin@gavinsolmonese.com
About FKB LLC
FKB LLC is a full-service fabrication studio that creates
emotionally transformative experiences for brands, agencies,
communities, and developers. It is based in Philadelphia, Pa.
FKB filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. E.D. Pa. Case No. 23-11371) on May 10,
2023, with $1 million to $10 million in both assets and
liabilities. James Barlow, manager, signed the petition.
Judge Patricia M. Mayer oversees the case.
The Debtor tapped Douglas G. Leney, Esq., at Archer & Greiner, PC
as counsel and Gavin/Solmonese LLC as asset sale advisor.
FREE SPEECH: Sandy Hook Families Prepare to Sue Jones' Family, Wife
-------------------------------------------------------------------
Dietrich Knauth of Reuters reports that the families of Sandy Hook
school shooting victims are preparing to sue Alex Jones' wife and
other family members to help satisfy $1.5 billion in judgments they
won from lawsuits against the bankrupt right wing conspiracy
theorist over his lies about the deadly 2012 U.S. school massacre.
Jones has engaged in "financial gymnastics" to hide his assets and
avoid paying the judgments, spreading money to friends, family
members, and shell companies, David Zensky, a lawyer for the
families, said on Friday, May 19, 2023, during a bankruptcy court
hearing in Houston.
The families have a "very strong case" to claw back certain
payments to Jones' family, including a $1 million payment from
Jones to his wife, Zensky said.
U.S. bankruptcy law allows debtors or their creditors to unwind
asset transfers that were made before bankruptcy in an effort to
avoid paying debts.
The families have investigated about $62 million in transfers out
of the Jones' company.
Jones' attorney, Vickie Driver, said Jones was not opposed to
unwinding payments if they were proven to be improper, but he would
prefer to appoint an independent expert for that work.
"You can imagine that if someone was to sue their wife over
transfers, that’s a little hard in the home," Driver said.
The families have accused Jones and FSS of profiting off lies about
the shooting for years and sued him for defamation. They have won
about $1.5 billion in two trials so far. Jones and his company Free
Speech Systems filed for bankruptcy protection in December and July
of last 2022.
Jones had claimed the killing of 20 students and six staff members
in the 2012 Sandy Hook elementary school massacre in Newtown,
Connecticut, was staged with actors as part of a government plot to
seize Americans' guns. Jones has since acknowledged the shooting
occurred.
U.S. Bankruptcy Judge Christopher Lopez, who is overseeing the
bankruptcies, said Jones and the Sandy Hook families should make
one last effort to reach a settlement.
"It's time for everyone to put their cards on the table," said
Lopez, who set a July 21, 2023 deadline for mediation.
About Free Speech Systems
Free Speech Systems LLC is a broadcast media production and
distribution company that provides broadcasting aural programs by
radio to the public. Free Speech Systems is a family-run business
founded by Alex Jones.
FSS is presently engaged in the business of producing and
syndicating Jones' radio and video talk shows and selling products
targeted to Jones' loyal fan base via the Internet. Today, FSS
produces Alex Jones' syndicated news/talk show (The Alex Jones
Show) from Austin, Texas, which airs via the Genesis Communications
Network on over 100 radio stations across the United States and via
the internet through websites including Infowars.com.
Due to the content of Alex Jones' shows, Jones and FSS have faced
an all-out ban of Infowars from mainstream online spaces. Shunning
from financial institutions and banning Jones and FSS from major
tech companies began in 2018.
Conspiracy theorist Alex Jones has been sued by victims' family
members over Jones' lies that the 2012 Sandy Hook Elementary School
shooting was a hoax.
Jones' InfoW LLC and affiliates, IWHealth, LLC and Prison Planet
TV, LLC, filed petitions under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. S.D. Texas Lead Case No. 22-60020) on April
18, 2022.
The Debtors agreed to the dismissal of the Chapter 11 cases in June
2022 after the Sandy Hook victim families dismissed the three
bankrupt companies from their lawsuits.
Free Speech Systems filed a voluntary petition for relief under
Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex.
Case No. 22-60043) on July 29, 2022. In the petition filed by W.
Marc Schwartz, as chief restructuring officer, the Debtor reported
assets and liabilities between $50 million and $100 million.
Melissa A Haselden has been appointed as Subchapter V trustee.
Alexander E. Jones filed for personal bankruptcy under Chapter 11
of the Bankruptcy Code (Bankr. S.D. Tex. Case No. 4:22-bk-60043) on
Dec. 2, 2022, listing $1 million to $10 million in assets against
liabilities of $1 billion to $10 billion in liabilities.
Raymond William Battaglia, of Law Offices of Ray Battaglia, PLLC,
is FSS's counsel. Raymond W. Battaglia and Crowe & Dunlevy, P.C.,
led by Vickie L. Driver, Christina W. Stephenson, Shelby A. Jordan,
and Antonio Ortiz are representing Alex Jones.
GLOBAL ALLIANCE: Court OKs Deal on Cash Collateral Thru July 28
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California,
Los Angeles Division, authorized Global Alliance Distributors, Inc.
to use cash collateral on an interim basis in accordance with its
agreement with Kapitus LLC.
The parties agree that the Debtor may use the receivables and cash
collateral to pay ordinary and necessary operating expenses on an
interim basis through July 28, 2023.
The hearing scheduled for May 25 at 11:30 a.m. has been continued
to July 27 at 11:30 a.m.
During the Interim Period, the Debtor must maintain a combined
balance of all bank accounts of not less than $45,000 every Friday
and is prohibited from withdrawing funds from its accounts if the
withdrawal would result in a combined balance of less than $45,000
on Friday.
During the Interim Period, the Debtor will transfer $1,000 a month
to Menchaca & Company LLP. The funds will be held in the trust
account of M&C pending Court approval of a fee application and
authorization to apply the funds held in trust to any approved fees
and costs of M&C. Pursuant to the agreement of Kapitus, Kapitus
subordinates its ownership and security interests in the funds held
in trust by M&C to M&C's right to seek authorization to apply such
funds to any Court approved fees and costs. Any excess funds held
by M&C following final approval of all fees and costs must be
returned to the Debtor and Kapitus' ownership and security
interests in any returned funds will remain intact. The Debtor is
authorized to use the Purchased Receipts and cash collateral solely
to pay the expenses set forth on the budget, with a 10% variance.
As adequate protection, Kapitus will be granted a replacement lien
pursuant to sections 361 and 363(e) in all prepetition and
postpetition assets in which and to the extent the Debtor holds an
interest.
The Postpetition Lien in favor of Kapitus will be senior in
priority to any and all claims, rights, liens and interests, but
subject and immediately junior only to any lien or security
interest in the Prepetition Collateral that is valid, perfected and
senior to the interest of Kapitus effective as of the Petition Date
and not otherwise avoided or subordinated.
A copy of the stipulation is available at
https://urlcurt.com/u?l=47cALf from PacerMonitor.com.
A copy of the order is available at https://urlcurt.com/u?l=TyMvCL
from PacerMonitor.com.
About Global Alliance Distributors
Founded in 2010, Global Alliance Distributors Inc. operates a
distribution center for primarily Latino books and magazines to
approximately 250 supermarkets throughout California, Nevada,
Arizona and Florida. It also distributes seasonal items,
including, but not limited to, school supplies, sporting goods and
equipment, snacks and candies. The Company also operates a logistic
business that provides cargo deliveries using independent
contractors. Its logistical clients are two major distribution
companies, A&C, which is currently the largest international
magazine distributor in the world, and Sally Beauty Supplies, a
national cosmetics manufacturer.
Global Alliance Distributors Inc. sought Chapter 11 bankruptcy
protection (Bankr. C.D. Cal. Case No. 22-12552) on May 5, 2022. In
the petition filed by Alberto Fabara, as CEO, Global Alliance
estimated assets between $500,000 and $1 million and estimated
liabilities between $1 million and $10 million.
The case is handled by the Hon. Bankruptcy Judge Deborah J.
Saltzman.
Sheila Esmaili, Esq., at the Law Offices of Sheila Esmaili, is the
Debtor's counsel.
The petition states that funds will be available to unsecured
creditors.
GLOBAL TEE: Seeks Cash Collateral Access
----------------------------------------
Global Tee Company, LLC 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 make payments
necessary for the continuation of its business.
In 2020 the company's business was acutely impacted by the
coronavirus pandemic. The Debtor experienced a loss of annual sales
of $4.587 million in 2019 and $3.4 million in 2020. The Debtor has
been recovering from the in excess of 27% loss of sales since
2020.
Creditors asserting a security interest in the Debtor's cash
collateral -- consisting of accounts, accounts receivable and
inventory -- and the amount owed to them are:
Creditor Amount owed
-------- -----------
CIT Bank $79,500
WebBank/Shopify $56,300
ODK Capital, LLC $221,000
PayPal $26,000
The cash collateral secured creditors also assert a security
interest in other assets of the Debtor including general
intangibles, goods, machinery and equipment.
These creditors assert a security interest in other assets of the
Debtor, which are not part of the cash collateral:
a. Geneva Capital LLC pursuant to lease or finance transaction
for GTX Machine, Fire Fly Dryer, Synergy Pre Test and Fire Fly Belt
Extensions.
b. Geneva Capital LLC for equipment lease or finance
transaction relating to Electra Print Jr. Stealth Series 6 Color 10
Station, Quartzair Flash and LED Exposure System.
c. HYG Financial Services Inc. pursuant to equipment leased to
the Debtor.
The Debtor is taking various cost-saving acts to minimize its
expenses and to increase its revenues.
The Debtor has offered the following adequate protection to the
cash collateral secured creditors:
a. Grant the Cash Collateral Secured Creditors with a
continuing and replacement security interest in the Debtor's cash
collateral, but excluding any rights of the Debtor and
Debtor-In-Possession under 11 U.S.C. sections 544, 545, 546, 547,
548, 549 and 550, in the same order, rank and priority and with the
same validity that existed as of the Petition Date. However, the
Cash Collateral Secured Creditors will not improve their position
regarding the value of their secured claims and cash collateral as
of the Petition Date. Moreover, the continuing replacement security
interest will not grant the Cash Collateral Secured Creditors an
interest in any property for which the Cash Collateral Secured
Creditor did not have a properly perfected security interest as of
the Petition Date.
b. Maintain the total value of cash collateral at no less than
the value of the cash collateral as of the Petition Date. The
Debtor will provide the cash collateral secured creditors with
financial information regarding the cash collateral as reasonably
requested.
A copy of the motion is available at https://urlcurt.com/u?l=B7SL7R
from PacerMonitor.com.
About The Global Tee Company, L.L.C.
The Global Tee Company, L.L.C. is a manufacturer of women's fitness
wearing apparel, which markets the sale of its products through an
online marketing program.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Mich. Case No. 23-01205) on May 25,
2023. In the petition signed by Scott Sandberg, member, the Debtor
disclosed up to $500,000 in assets and up to $10 million in
liabilities.
Judge James W. Boyd oversees the case.
Perry Pastula, Esq., at Dunn, Schouten & Snoap, P.C., represents
the Debtor as legal counsel.
GOLDEN Z LLC: Sale of Property by January to Pay Off Claims
-----------------------------------------------------------
Golden Z, LLC, submitted a Disclosure Statement and Plan of
Reorganization pursuant to Chapter 11 of Title 11, United States
Code.
Golden Z is a Washington limited liability company that was formed
in January 2017 by Zhandos Belbayev for the purpose of acquiring
real estate for investment purposes. Golden Z bought a condominium
in Kirkland, King County, Washington located at 213 4th Ct. S., #9
in February 2017 for $1,407,000 tax parcel # 082505-9014-03 (the
"Property").
Golden Z will continue listing the Property for sale and may adjust
the list price as market conditions warrant. The sale of the
Property shall not require approval of the Court unless the
bankruptcy case is open and/or Golden Z requires an order of sale
free and clear of liens. Golden Z will be permitted to pay at
closing the secured claims against the Property, costs of sale,
escrow fees, the commission due the selling agent, and remit the
balance of the net proceeds to Golden Z.
Class 1 will include All Unsecured Tax Claims of Governmental
Entities entitled to priority under Sec. 507(a)(2) through (a)(9)
of the Code. Class 1 claims are estimated to aggregate less than
$500. The Class 1 claims will be paid in full by the Effective
Date. Class 1 is unimpaired.
Class 2 consists of Wilmington Fund Society FSB as trustee for
Verus Securitization Trust INV2, successor in interest to Wadot
Capital, which as of the Petition Date held a deed of trust against
the Property to secure a debt in the total amount of $1,783,171
including prepetition interest, fees and costs. The Class 2
creditor shall retain its lien on the Property and its claim shall
be paid in full upon sale of the Property. In the event the
Property is not sold by January 31, 2024, the automatic stay of 11
U.S.C. Sec. 362 shall terminate and this creditor shall be entitled
to utilize its state law remedies to collect on its debt.
Class 3 consists of 401 State Street Townhomes Condominium
Association, which holds a secured claim in the amount of $2,400.
The Class 3 creditor shall retain its lien on the Property and its
claim shall be paid in full upon sale of the Property. In the event
the Property is not sold by January 31, 2024, the automatic stay of
11 USC Sec. 362 shall terminate and this creditor shall be entitled
to utilize its state law remedies to collect on its debt.
Postconfirmation payments of current monthly dues shall be paid by
Mr. Belbayev.
Class 4 - Zhandos Belbayev, the sole member of Golden Z, will
receive no distribution on account of such interest but will retain
his interest in Golden Z.
Golden Z has sought to provide the best possible outcome for
creditors in this case by proposing a liquidation that will provide
creditors payment in full.
Attorney for the Debtor:
James E. Dickmeyer, Esq.
JAMES E. DICKMEYER, PC
520 Kirkland Way Suite 400, PO Box 2623
Kirkland, WA 98083-2623
Tel: (425) 889-2324
A copy of the Disclosure Statement dated May 17, 2023, is available
at bit.ly/3MHOSqi from PacerMonitor.com.
About Golden Z LLC
Golden Z, LLC, is a single asset real estate (as defined in 11
U.S.C. Section 101(51B)). The company owns a condo or coop located
at 213 4th Ct. S. #9 Kirkland, Wash., valued at $2.4 million.
Golden Z filed a petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. W.D. Wash. Case No. 23-10300) on Feb. 17,
2023, with $1 million to $10 million in both assets and
liabilities. Zhandos Belbayev, authorized representative of the
Debtor, signed the petition.
Judge Timothy W. Dore oversees the case.
The Debtor is represented by James E. Dickmeyer, PC.
GORILLA CAR WASH: Case Summary & Six Unsecured Creditors
--------------------------------------------------------
Debtor: Gorilla Car Wash, LLC
554 Main Street
Paterson, NJ 07503
Chapter 11 Petition Date: May 30, 2023
Court: United States Bankruptcy Court
District of New Jersey
Case No.: 23-14644
Debtor's Counsel: Jenee Ciccarelli, Esq.
CICCARELLI LAW, PC
239 New Rd.
Bldg A Suite 301
Parsippany, NJ 07054
Tel: 973-737-9060
Email: info@jc-lawpc.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Radames Luberza as managing member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's six unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/H6XDTVQ/Gorilla_Car_Wash_LLC__njbke-23-14644__0001.0.pdf?mcid=tGE4TAMA
GREAT WEST: Gets Approval to Hire Hilco as Real Estate Agent
------------------------------------------------------------
Great West Development, Inc. received approval from the U.S.
Bankruptcy Court for the Western District of Texas to employ Hilco
Real Estate, LLC.
The Debtor requires a real estate agent to:
(a) develop a sales strategy;
(b) solicit interested parties for the sale of the Debtor's
property and marketing of the property for sale through a managed
qualifying bid process; and
(c) conduct negotiations at the Debtor's direction for the
sale of the property.
The firm will receive a commission of 3 percent of the first
$4,000,000; 6 percent of the incremental amount from $4,000,001 to
$8,000,000; and 9 percent of the incremental amount in excess of
$8,000,000.
In addition, the firm will seek reimbursement for out-of-pocket
expenses incurred.
Sarah Baker, a managing member of Hilco Real Estate, disclosed in a
court filing that her firm is a "disinterested person" as that term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Sarah Baker
Hilco Real Estate, LLC
5 Revere Dr., Suite 206
Northbrook, IL 60062
Telephone: (855) 755-2300
Email: sbaker@hilcoglobal.com
About Great West Development
Great West Development, Inc. filed a petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. W.D. Texas Case No.
23-10140) on March 7, 2023, with $1 million to $10 million in both
assets and liabilities. Phillip R. William, president of Great West
Development, signed the petition.
Judge H. Christopher Mott oversees the case.
The Debtor tapped B. Weldon Ponder, Jr., Esq., as bankruptcy
counsel.
H-CYTE INC: Incurs $2.1 Million Net Loss in First Quarter
---------------------------------------------------------
H-Cyte, Inc. filed with the Securities and Exchange Commission its
Quarterly Report on Form 10-Q disclosing a net loss of $2.09
million on $0 of revenues for the three months ended March 31,
2023, compared to a net loss of $3.89 million on $379,560 of
revenues for the three months ended March 31, 2022.
As of March 31, 2023, the Company had $349,355 in total assets,
$11.68 million in total liabilities, and a total stockholders'
deficit of $11.33 million.
H-Cyte said, "The Company has historically incurred losses from
operations and expects to continue to generate negative cash flows
as it implements the transition into a biologics and therapeutic
incubator company to bring new technologies to market.
"The Company had cash on hand of approximately $116,000 as of March
31, 2023 and approximately $4,000 as of May 19, 2023. The
Company's cash is insufficient to fund its operations over the next
year and the Company is currently working to obtain additional debt
or equity financing to help support short-term working capital
needs.
"There can be no assurance that the Company will be able to raise
additional funds or that the terms and conditions of any future
financings will be workable or acceptable to the Company or its
shareholders. If the Company is unable to fund its operations from
existing cash on hand, operating cash flows, additional borrowings,
or raising equity capital, the Company may be forced to discontinue
operations. The consolidated financial statements do not include
any adjustments relating to the recoverability and classification
of recorded asset amounts or the amounts and classification of
liabilities that might be necessary should the Company be unable to
continue as a going concern."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1591165/000149315223018504/form10-q.htm
About H-CYTE Inc.
Headquartered in Tampa, Florida, H-CYTE Inc. --
http://www.HCYTE.com-- is a hybrid-biopharmaceutical company
dedicated to developing and delivering new treatments for patients
with chronic respiratory and pulmonary disorders.
H-Cyte reported a net loss of $10.30 million for the year ended
Dec. 31, 2022, compared to a net loss of $4.80 million for the year
ended Dec. 31, 2021. As of Dec. 31, 2022, the Company had $137,357
in total assets, $9.49 million in total liabilities, and a total
stockholders' deficit of $9.36 million.
Tampa, Florida-based Frazier & Deeter, LLC, the Company's auditor
since 2018, issued a "going concern" qualification in its report
dated May 10, 2023, citing that the Company has negative working
capital, has an accumulated deficit, has a history of significant
operating losses and has a history of negative operating cash flow
that raise substantial doubt about its ability to continue as a
going concern.
HEARTHSIDE FOOD: Taps Evercore to Help With 2025 Debt Maturities
----------------------------------------------------------------
Reshmi Basu and Rachel Butt of Bloomberg News report that
Hearthside Food Solutions, a contract food processor accused in a
recent news report of employing migrant child workers in Michigan,
has hired Evercore Inc.as an adviser as it prepares to refinance
debt due in 2025.
The company's first-priority lenders have hired PJT Partners Inc.
and Gibson Dunn & Crutcher, according to people with knowledge of
the situation. Hearthside has had a series of private equity owners
over the past decade, and its operations have been consistently
burning cash since its latest buyoutin 2018, according to Moody's
Investors Service.
About Hearthside Food Solutions
Hearthside Food Solutions manufactures baked goods and snack foods
at facilities located in 38 states, including facilities in McComb,
Ohio; Toledo, Ohio; and London, Kentucky.
HIGHPOINT LIFEHOPE: Taps Newmark Real Estate of Dallas as Broker
----------------------------------------------------------------
Highpoint Lifehope SPE, LLC received approval from the U.S.
Bankruptcy Court for the Western District of Texas to employ
Newmark Real Estate of Dallas, LLC as its real estate broker.
The Debtor needs a broker to market and sell its real property
located in San Antonio, Texas.
Newmark will earn a fixed commission of $600,000 to be paid from
the sale proceeds upon the closing of a sale transaction.
In addition, the firm will seek reimbursement for expenses
incurred.
Ben Appel, an executive managing director at Newmark Real Estate of
Dallas, 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:
Ben Appel
Newmark Real Estate of Dallas, LLC
2005 Market Street, Suite 900
Philadelphia, PA 19103
Telephone: (215) 246-2714
Facsimile: (215) 872-9903
Email: ben.appel@nmrk.com
About Highpoint Lifehope SPE
Highpoint Lifehope SPE LLC, also known as Honan Property Management
- Highpoint, is a single asset real estate (as defined in 11 U.S.C.
Sec. 101(51B)).
Highpoint Lifehope SPE sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. W.D. Texas Case No. 22-50929) on Aug.
22, 2022. In the petition filed by Scott C. Honan, manager, the
Debtor disclosed between $50 million and $100 million in both
assets and liabilities.
Judge Michael M. Parker oversees the case.
Natalie F. Wilson, Esq., at Langley & Banack Inc. serves as the
Debtor's legal counsel.
HOME TOWN FLORIDA: Unsecureds Will Get 100% of Claims over 5 Years
------------------------------------------------------------------
Home Town Florida, LLC, filed with the U.S. Bankruptcy Court for
the Middle District of Florida a Disclosure Statement regarding
Plan of Reorganization dated May 22, 2023.
The Debtor is a limited liability company formed and organized
under the laws of the State of Florida. The Debtor's primary
business is the purchase, sale and management of real estate
investment projects in the greater Jacksonville, Florida area.
The Debtor operates out of its office located at 13022 Huntley
Manor Drive, Jacksonville, FL32224. This premises is owned by the
Debtor's Managing Member, Dr. Ziwei Zhang. The Debtor currently
owns one real residential property and manages a total of 5
properties. The other 4 properties being managed are owned
individually by Debtor's principal, Dr. Zhang.
The Plan proposes to reorganize its secured debt and provide for
payment on account of unsecured claims.
This Plan provides for 1 class of priority claims; 2 classes of
secured claims; and 1 class of general unsecured claims. Class 5
unsecured creditors holding allowed claims will receive
distribution under this Plan of 100% of their claim value via
quarterly payments for 60 months beginning on the Effective Date of
this Plan. This Plan also provides for the payment of
administrative and priority claims.
Class 4 consists of Equity Interest in the Debtor. All Class 4
Interests shall be retained in the same portion existing as of the
Petition Date. Class 4 is unimpaired by this Plan.
Class 5 consists of General Unsecured Creditors. The holders of
Class 5 will receive 100% of their allowed secured claims
($8,077.23) paid in full via quarterly payments of $403.86 over 5
years starting from the Effective Date of this Plan. Class 5 is
impaired by this Plan.
Except as otherwise provided in the Plan or in the order confirming
the Plan, (i) The Debtor will retain all property of the estate and
confirmation of the Plan vests all property of the estate in the
Debtor, and (ii) after confirmation of the Plan, the property dealt
with by the Plan shall be free and clear of any and all liens,
claims, and interests of any creditors.
Funds generated from operations through the Effective Date will be
used for Plan Payments; however, the Debtor's cash on hand as of
Confirmation will be available for payment of Administrative
Expenses. The funds needed to pay the Class 2 Creditor per the Plan
will be provided in the form of a capital contribution from
Debtor's principal, Dr. Ziwei Zhang.
A full-text copy of the Disclosure Statement dated May 22, 2023 is
available at https://urlcurt.com/u?l=5unlAO from PacerMonitor.com
at no charge.
Counsel to Plan Proponent:
Thomas C. Adam, Esq.
Adam Law Group, P.A.
326 N. Broad St., Ste. 208
Jacksonville, FL 32202
Telephone: (904) 329-7249
Email: tadam@adamlawgroup.com
About Home Town Florida
Home Town Florida, LLC, is a limited liability company with the
purchase, sale and management of real estate investment projects in
the greater Jacksonville, Florida area as the primary business.
Home Town Florida sought protection for relief under Chapter 11 of
the Bankruptcy Code (Bankr. M.D. Fla. Case No. 22-02331) on Nov.
21, 2022, with up to $50,000 in assets and $100,001 to $500,000 in
liabilities. Judge Jacob A. Brown oversees the case.
The Debtor is represented by Thomas C. Adam, Esq., at Adam Law
Group, P.A.
IBIO INC: Posts $7.3 Million Net Loss in Third Quarter
------------------------------------------------------
iBio, Inc. filed with the Securities and Exchange Commission its
Quarterly Report on Form 10-Q disclosing a net loss available to
the Company's stockholders of $7.29 million on $0 of revenues for
the three months ended March 31, 2023, compared to a net loss
available to the Company's stockholders of $12.39 million on $1.8
million of revenues for the three months ended March 31, 2022.
For the nine months ended March 31, 2023, the Company recorded a
net loss available to the Company's stockholders of $58.98 million
on $0 of revenues compared to a net loss available to the Company's
stockholders of $33.34 million on $1.88 million of revenues for the
same period in 2022.
As of March 31, 2023, the Company had $44.38 million in total
assets, $26.99 million in total liabilities, and $17.39 million in
total stockholders' equity.
iBio said, "The history of significant losses, the negative cash
flow from operations, the limited cash resources on hand and the
dependence by the Company on its ability to obtain additional
financing to fund its operations after the current cash resources
are exhausted raise substantial doubt about the Company's ability
to continue as a going concern. In an effort to remain a going
concern and increase cash reserves, the Company completed a public
equity offering, reduced its work force by approximately 60% (a
reduction of approximately 69 positions) in November 2022, and
ceased operations of its CDMO facility thereby reducing annual
spend on expenses by approximately 50%. Additionally, in July
2022, the Company initiated the selling of the CDMO assets and
facility, and since then has sold a substantial portion of the CDMO
assets. Additional potential options being considered to further
increase liquidity include lowering the Company's expenses further,
focusing product development on a select number of product
candidates, the sale of the CDMO, the sale or out-licensing of
certain product candidates, additional equipment sales, raising
money from capital markets, grant revenue or collaborations, or a
combination thereof."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1420720/000155837023009707/ibio-20230331x10q.htm
About iBio Inc.
iBio, Inc. -- http://www.ibioinc.com-- is a developer of
next-generation biopharmaceuticals using its proprietary
Artificial
Intelligence-Driven Discovery Platform and FastPharming
Manufacturing System. The Company focused its technologies on the
research and development of novel products at its Drug Discovery
Center in California. The Company is currently using its
FastPharming Manufacturing System and GlycaneeringSM Technologies
to develop its portfolio of proprietary biologic drug candidates.
iBio reported a net loss attributable to the Company of $50.30
million for the year ended June 30, 2022, a net loss attributable
to the Company of $23.21 million for the year ended June 30, 2021,
a net loss attributable to the company of $16.44 million for the
year ended June 30, 2020, and a net loss attributable to the
Company of $17.59 million for the year ended June 30, 2019. As of
Dec. 31, 2022, the Company had $51.80 million in total assets,
$32.98 million in total liabilities, and $18.82 million in total
stockholders' equity.
Holmdel, New Jersey-based CohnReznick LLP, the Company's auditor
since 2010, issued a "going concern" qualification in its report
dated Oct. 11, 2022, citing that the Company has suffered recurring
losses from operations and negative cash flows from operating
activities for the years ended June 30, 2022 and 2021 and has an
accumulated deficit as of June 30, 2022. These matters, among
others, raise substantial doubt about its ability to continue as a
going concern.
IDAHO ALLERGY: U.S. Trustee Appoints David Crapo as PCO
-------------------------------------------------------
Peter C. Anderson, the United States Trustee for Region 16,
appointed David Crapo as patient care ombudsman for Idaho Allergy,
LLC.
The appointment was made pursuant to the order from the U.S.
Bankruptcy Court for the Central District of California approving a
stipulation for the appointment of a patient care ombudsman. The
U.S. Trustee is authorized to appoint a patient care ombudsman in
this case under Section 333(a)(1) of the Bankruptcy Code.
In the PCO's investigation, the PCO discovered no known connections
with Idaho Allergy, principals of the company, insiders, creditors
or any other party involved in the company's Chapter 11 case.
A copy of the notice is available for free at
https://urlcurt.com/u?l=WT0ADb from PacerMonitor.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.
INDIGO PALMS: No Resident Complaints, 6th PCO Report Says
---------------------------------------------------------
Terri Cantrell, the patient care ombudsman for Indigo Palms, LLC,
filed with the U.S. Bankruptcy Court for the Middle District of
Florida a sixth report regarding the quality of patient care
provided at the company's assisted living facility in Daytona
Beach, Calif.
According to the report, which covers the period March 15 to May
11, 2023, no complaints concerning the medical care being provided
at the facility were filed with the ombudsman program by or on
behalf of residents during the reporting period.
In terms of staffing requirement, Indigo Palms consistently
exceeded the minimum requirement during the reporting period based
on the PCO's review of staff schedules and payroll reports.
A copy of the sixth ombudsman report is available for free at
https://urlcurt.com/u?l=MYvaPA from PacerMonitor.com.
The PCO can be reached through her attorney:
Ana M. Gargollo-McDonald, Esq.
Legal Advocate
Department of Elder Affairs, LTCOP
4040 Esplanade Way
Tallahassee, FL 32399
Telephone: (850)414-2181
Email: mcdonalda@elderaffairs.org
About Indigo Palms
A Florida limited liability company, Indigo Palms, LLC leases and
operates an assisted living facility located at 507 Healthcare
Drive, Daytona Beach, Fla.
Indigo Palms filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. M.D. Fla. Case No. 22-01080) on March 25,
2022, with up to $100,000 in assets and up to $10 million in
liabilities. Robert Altman serves as Subchapter V trustee.
Judge Tiffany Payne Geyer oversees the case.
Kenneth D. Herron, Jr., Esq. at Herron Hill Law Group, PLLC, serves
as the Debtor's legal counsel.
The patient care ombudsman appointed in the Debtor's case is
represented by Lynn C. Hearn, Esq.
JEFFERSON LA BREA: Seeks Cash Collateral Access Thru Oct 31
-----------------------------------------------------------
Jefferson La Brea D&J Properties LLC asks the U.S. Bankruptcy Court
for the Central District of California, Los Angeles Division, for
entry of an order authorizing the use of cash collateral through
October 31, 2023.
The cash collateral consists of rents collected by the Debtor from
leasing a commercial property located at 5112-5118 W. Jefferson
Blvd., and 3409-3421 S. La Brea Avenue, in Los Angeles. The
entities that have recorded deeds of trust on the Real Property and
may assert a security interest in the rents are Mega Bank, JBM
Family Trust, and Tony Lewis.
The Debtor requires the use of cash collateral for the operating
expenses of the Real Property and other administrative expenses of
the Debtor. The Debtor is informed that the Real Property is worth
approximately $12 million.
The Debtor contends that existing security interests are adequately
protected by a substantial equity cushion. Nonetheless, the Debtor
proposes to grant replacement liens in the postpetition rents.
As set forth in the budget, the Debtor currently has over $150,000
in cash and $14,8500 of monthly income. Monthly expenditures are
under $7,000.
A copy of the Debtor's motion and budget is available at
https://bit.ly/3wNTsua from PacerMonitor.com.
About Jefferson La Brea D&J Properties LLC
Jefferson La Brea D&J Properties LLC leases a commercial property
located at 5112-5118 W. Jefferson Blvd., and 3409-3421 S. La Brea
Avenue, in Los Angeles.
Jefferson La Brea D&J Properties LLC sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No.
22-14481) on August 17, 2022. The Debtor considers itself a Single
Asset Real Estate (as defined in 11 U.S.C. Sec. 101(51B)).
In the petition filed by Jason E. Upchurch, as manager, the Debtor
estimated assets between $10 million and $50 million and estimated
liabilities between $1 million and $10 million.
Judge Vincent P. Zurzolo oversees the case.
The Debtor is represented by David B. Shemano, Esq., at
ShemanoLaw.
KAYA HOLDINGS: Reports $67K Net Income for First Quarter
--------------------------------------------------------
Kaya Holdings, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing net income
attributable to the Company of $67,159 on $48,245 of net sales for
the three months ended March 31, 2023, compared to a net loss
attributable to the Company of $1.07 million on $188,664 of net
sales for the three months ended March 31, 2022.
As of March 31, 2023, the Company had $304,879 in total assets,
$17.72 million in total liabilities, and a total stockholders'
deficit of $17.42 million.
The increase in net income is due to the changes in derivative
liabilities, as well as the gain on the sale of assets. At March
31, 2023 the Company has a working capital deficiency of $9,625,671
and is totally dependent on its ability to raise capital.
Kaya Holdings said, "The Company has a plan of operations and
acknowledges that its plan of operations may not result in
generating positive working capital in the near future. Even
though management believes that it will be able to successfully
execute its business plan, which includes third-party financing and
capital issuance, and meet the Company's future liquidity needs,
there can be no assurances in that regard. These matters raise
substantial doubt about the Company's ability to continue as a
going concern."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1530746/000190359623000453/kays_10q.htm
About Kaya Holdings
Kaya Holdings, Inc. -- http://www.kayaholdings.com-- is a holding
company focusing on wellness and mental health through operations
in medical and recreational cannabis, CBD products and psychedelic
treatment clinics.
Kaya Holdings reported a net loss of $3.73 million for the year
ended Dec. 31, 2022, compared to net income of $9.39 million for
the year ended Dec. 31, 2021. As of Dec. 31, 2022, the Company had
$843,241 in total assets, $18.45 million in total liabilities, and
a total stockholders' deficit of $17.60 million.
Houston, TX-based M&K CPAS, PLLC, the Company's auditor since 2018,
issued a "going concern" qualification in its report dated April
27, 2023, citing that the Company had a net loss from continuing
operations, net cash used in operations, and a lack of revenues
to-date, which raises substantial doubt about its ability to
continue as a going concern.
MANHATTAN SCIENTIFICS: Incurs $420K Net Loss in First Quarter
-------------------------------------------------------------
Manhattan Scientifics, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $420,000 on zero revenue for the three months ended March 31,
2023, compared to a net loss of $647,000 on zero revenue for the
three months ended March 31, 2022.
As of March 31, 2023, the Company had $694,000 in total assets,
$1.75 million in total liabilities, $1.06 million in series D
convertible preferred mandatory redeemable shares, and a total
stockholders' deficit of $2.12 million.
Manhattan Scientifics said, "As of March 31, 2023, the Company has
an accumulated deficit of $71,670,000 and negative working capital
of $1,636,000. Because of these conditions, the Company will
require additional working capital to develop business operations.
The Company intends to raise additional working capital through the
continued licensing of its technology as well as to generate
revenues for other services. There are no assurances that the
Company will be able to achieve the level of revenues adequate to
generate sufficient cash flow from operations to support the
Company's working capital requirements. To the extent that funds
generated are insufficient, the Company will have to raise
additional working capital. No assurance can be given that
additional financing will be available, or if available, will be on
terms acceptable to the Company. If adequate working capital is
not available, the Company may not continue its operations.
"These factors raise substantial doubt about the Company's ability
to continue as going concern within one year from the date of
filing these financial statements."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/Archives/edgar/data/1099132/000147793223003858/mhtx_10q.htm
About Manhattan Scientifics
Headquartered in New York, Manhattan Scientifics, Inc., was
established on July 31, 1992 and has one operating wholly-owned
subsidiary: Metallicum, Inc. The Company also holds a 5%,
noncontrolling interest in Imagion Biosystems, Inc. (f/k/a Senior
Scientific LLC). Manhattan Scientifics is focused on technology
transfer and commercialization of transformative technologies.
The Company operates as a technology incubator that seeks to
acquire, develop and commercialize life-enhancing technologies in
various fields.
Manhattan Scientifics reported a net loss of $2.73 million for the
year ended Dec. 31, 2022, compared to a net loss of $3.64 million
for the year ended Dec. 31, 2021. As of Dec. 31, 2022, the Company
had $1.03 million in total assets, $1.67 million in total
liabilities, $1.06 million in series D convertible preferred
mandatory redeemable shares, and a total stockholders' deficit of
$1.70 million.
Draper, UT-based Sadler, Gibb & Associates, LLC, the Company's
auditor since 2020, issued a "going concern" qualification in its
report dated April 13, 2023, citing that the Company has an
accumulated deficit, negative cash flows form operations, and
negative working capital, which raises substantial doubt about its
ability to continue as a going concern.
METAL CHECK: Stephen Moriarty Named Subchapter V Trustee
--------------------------------------------------------
The U.S. Trustee for Region 14 appointed Stephen Moriarty, Esq., at
Fellers Snider Blankenship Bailey & Tippens, PC, as Subchapter V
trustee for Metal Check, Inc.
Mr. Moriarty will be paid an hourly fee of $500 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Moriarty declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Stephen J. Moriarty, Esq.
Fellers Snider Blankenship Bailey & Tippens, PC
100 North Broadway Ave., Suite 1700
Oklahoma City, OK 73102-8820
Phone:(405) 232-0621
Fax: (405) 232-9659
Email: smoriarty@fellerssnider.com
About Metal Check
Metal Check, Inc., a company in Oklahoma City, filed a petition
under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. W.D.
Okla. Case No. 23-11279) on May 16, 2023, with $841,675 in assets
and $2,033,069 in liabilities. Diana Salazar, president of Metal
Check, signed the petition.
Judge Janice D. Loyd oversees the case.
Christopher Wood, Esq., at Christopher A. Wood & Associates, P.C.
is the Debtor's counsel.
MIKE JOHNSON: James Cross Named Subchapter V Trustee
----------------------------------------------------
The U.S. Trustee for Region 14 appointed James Cross, Esq., at
Cross Law Firm, PLC as Subchapter V trustee for Mike Johnson
Enterprises, LLC.
Mr. Cross will be paid an hourly fee of $425 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Cross declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
James E. Cross, Esq.
Cross Law Firm, PLC
PO Box 45469
Phoenix, AZ 85064
602-412-4422
Email: jcross@crosslawaz.com
About Mike Johnson Enterprises
Mike Johnson Enterprises, LLC filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. D. Ariz. Case No.
23-03234) on May 16, 2023. Judge Brenda K. Martin oversees the
case.
MIRAGE RESTAURANT: Robert Handler Named Subchapter V Trustee
------------------------------------------------------------
The U.S. Trustee for Region 11 appointed Robert Handler of
Commercial Recovery Associates, LLC as Subchapter V trustee for
Mirage Restaurant, Inc.
Mr. Handler will be paid an hourly fee of $450 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Handler declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Robert P. Handler
Commercial Recovery Associates, LLC
205 West Wacker Drive, Suite 918
Chicago, IL 60606
Tel. (312) 845-5001 x221
Email: rhandler@com-rec.com
About Mirage Restaurant
Mirage Restaurant, Inc. filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. N.D. Ill. Case No.
23-06458) on May 16, 2023, with $50,001 to $100,000 in assets and
$500,001 to $1 million in liabilities. Judge Deborah L. Thorne
oversees the case.
The Debtor is represented by Robert R. Benjamin, Esq., at Golan
Christie Taglia, LLP.
MLCJR LLC: Court OKs $345MM DIP Loan from BP Energy and ANB
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas,
Houston Division, authorized MLCJR LLC and its debtor-affiliates to
use cash collateral and obtain postpetition financing, on an
interim basis.
In connection with the Chapter 11 filing, the Company has obtained
a commitment for $75 million of new money financing to fund ongoing
operations. Specifically, MLCJR obtained secured postpetition
financing in a principal amount not to exceed $345.2 million
consisting of:
(i) a new money term loan facility in the aggregate principal
amount of $75 million, $20 million of which was available upon
entry of the First Interim Order, and an additional $30 million of
which will be available upon entry and subject to the Second
Interim Order, provided the Draw Conditions are satisfied,
(ii) subject to entry of the Final Order, a First Lien First
Out refinancing facility in the aggregate principal amount of up to
$220.2 million consisting of the Prepetition Swap Obligations and a
portion of the Prepetition Loan Obligations, and
(iii) subject to entry of the Final Order, a First Lien Second
Out refinancing facility in the aggregate principal amount of $50
million consisting of any remaining Prepetition Loan Obligations
that are not refinanced under the FLFO Refinancing Facility.
BP Energy Company and Amarillo National Bank are the lenders under
the DIP Facility. ANB serves as administrative agent and collateral
agent.
The DIP Facility matures through the earliest of (i) six months
after the Petition Date, (ii) the effective date of the Approved
Plan of Reorganization, (iii) the consummation of the Approved
Sale, (iv) the date of acceleration of the DIP Loans and
termination of the DIP Commitments upon and during the continuance
of an event of default under the DIP Facility, (v) 30 days after
the Petition Date, unless the Final DIP Order has been entered by
the Bankruptcy Court on or prior to such date, and (vi) the
Conditions Precedent to Closing are not satisfied on or before the
date that is 14 days after the Petition Date.
The DIP Documents will require compliance with milestones,
including without limitation:
(i) No later than the date that is five days after the
Petition Date, the Interim DIP Order will have been entered by the
Bankruptcy Court;
(ii) No later than the date that is seven days after the
Petition Date, the Debtors will have filed a motion, in form and
substance reasonably acceptable to the DIP Lenders, seeking final
approval of procedures governing the sale and marketing process for
substantially all of the Debtors' assets;
(iii) No later than the date that is seven days after the
Petition Date, the Debtors will have filed a motion seeking to
dismiss or transfer venue of the involuntary bankruptcy case (Case
No. 23-10734) filed against Cox Operating, L.L.C. in the United
States Bankruptcy Court for the Eastern District of Louisiana and
will have requested emergency consideration thereof by the
Louisiana Court;
(iv) No later than the date that is 14 days after the Petition
Date, the Closing Date will have occurred; and
(v) No later than the date that is 14 days after the Petition
Date, the Debtors will have obtained an order from the Louisiana
Court granting the Venue Motion, provided that in the event the
Louisiana Court does not consider the Venue Motion within 14 days
after the Petition Date, this Milestone will be deemed
automatically extended until the date that the Louisiana Court
considers and rules on the Venue Motion.
Pursuant to the ISDA Agreement, MLCJR and BPEC entered into one or
more transactions thereunder in connection with the Debtors'
offshore oil and gas exploration and production operations and the
Debtors' hedging of commodity prices in connection therewith. Prior
to the Petition Date, BPEC notified MLCJR of the occurrence of one
or more Events of Default and designated April 28, 2023 as the
Early Termination Date with respect to the Transactions. As of the
bankruptcy filing date, the Borrower and the guarantors under the
relevant Prepetition Intercreditor Agreement were indebted and
liable to the Prepetition Swap Party in the aggregate principal
Close-out Amount of not less than $157.9 million and Unpaid Amounts
of $32.336 million in accordance with the terms of the ISDA
Agreement and the Prepetition Intercreditor Agreement.
MLCJR and ANB, among others, are party to the Prepetition Loan
Agreement, pursuant to which ANB provided to MLCJR a revolving loan
facility with $80 million of maximum aggregate availability to the
borrower thereunder. As of the Petition Date, the Borrower and the
Prepetition Guarantors were indebted and liable to the Prepetition
Lender in the aggregate principal amount of not less than $80
million.
The Debtors have an immediate need to continue to use the
Prepetition Collateral to preserve their estates, including (i) for
the orderly continuation of the operation of their businesses, (ii)
to preserve business relationships with vendors, suppliers,
employees, and customers, (iii) to satisfy other working capital
and operational needs; and (iv) to preserve and maintain the going
concern value of the Debtors.
As adequate protection, the Prepetition Collateral Agent is granted
a valid, perfected replacement security interest in and lien upon
all of the DIP Collateral.
To the extent of the aggregate diminution in value of their
respective interests in the Prepetition Collateral from and after
the Petition Date, the Prepetition Collateral Agent is granted an
allowed superpriority administrative expense claim.
A final hearing on the matter is set for June 7, 2023 at 10 a.m.
A copy of the order is available at https://urlcurt.com/u?l=Up63JP
from PacerMonitor.com.
About MLCJR LLC,
Cox Operating et al.
Cox Operating L.L.C. -- https://coxoperating.com/ -- and several
affiliated entities including Cox Oil Offshore, L.L.C., Energy XXI
GOM, LLC, Energy XXI Gulf Coast, LLC, EPL Oil & Gas, LLC, M21K,
LLC, and MLCJR, LLC, a group of affiliated companies whose business
involves the extraction of offshore oil and gas in the Gulf of
Mexico. They are privately held entities indirectly owned by Cox
Investment Partners, LP, through Phoenix Petro Services LLC.
On May 12, 2023, certain trade creditors filed an involuntary
petition under Chapter 7 of the Bankruptcy Code against Cox
Operating (Bankr. E.D. La. Case No. 23-10734). The petitioning
creditors -- Keystone Chemical, LLC, et al. -- are represented by
the Slyvester Law Firm.
Cox Operating and its affiliates sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 23-90328) on
May 14, 2023. The cases are jointly administered under In re MLCJR
LLC (Bankr. S.D. Tex. Lead Case No. 23-90324).
In the petitions signed by Craig Sanders, authorized person, the
Debtors disclosed up to $500 million in estimated assets and in
liabilities.
Judge Christopher Lopez oversees the case.
Lawyers at Latham & Watkins LLP and Jackson Walker LLP represent
the Debtor as legal counsel. Moelis & Company LLC, led by Bassam
J. Latif, its Managing Director, serves as the Debtors' investment
banker. Alvarez & Marsal North America, LLC, serves as financial
advisor, providing a chief restructuring officer to the Debtors.
Kroll Restructuring serves as claims and noticing agent.
Amarillo National Bank, as lender, is represented by:
Roger Cox, Esq.
Underwood Law Firm, P.C.
500 S. Taylor, Suite 1200,
Amarillo, TX 79101
MLCJR LLC: Gets OK to Hire Kroll as Claims and Noticing Agent
-------------------------------------------------------------
MLCJR LLC and its affiliates received approval from the U.S.
Bankruptcy Court for the Southern District of Texas to employ Kroll
Restructuring Administration LLC as claims, noticing, and
solicitation agent.
Kroll will oversee the distribution of notices and will assist in
the maintenance, processing, and docketing of proofs of claim filed
in the Chapter 11 cases of the Debtors.
The hourly rates of the firm's professionals are as follows:
Analyst $30 - $60
Technology Consultant $35 - $110
Consultant/Senior Consultant $65 - $195
Director $175 - $245
Solicitation Consultant $220
Director of Solicitation $245
In addition, the firm will seek reimbursement for expenses
incurred.
Benjamin Steele, a managing director at Kroll Restructuring
Administration, disclosed in a court filing that hisfirm is a
"disinterested person" as defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Benjamin J. Steele
Kroll Restructuring Administration LLC
55 East 52nd Street, 17th Floor
New York, NY 10055
Telephone: (212) 593-1000
About MLCJR LLC
MLCJR LLC and its affiliates filed voluntary petitions for relief
under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Texas Lead
Case No. 23-90324) on May 14, 2023. At the time of the filing,
MLCJR reported as much as $50,000 in assets and $100 million to
$500 million in liabilities.
Judge Christopher M. Lopez oversees the cases.
Jackson Walker, LLP and Latham & Watkins, LLP serve as the Debtors'
legal counsels. Kroll Restructuring Administration, LLC is the
claims, noticing, and solicitation agent.
MONITRONICS INTERNATIONAL: Gets OK to Hire Kroll as Claims Agent
----------------------------------------------------------------
Monitronics International, Inc. and its affiliates received
approval from the U.S. Bankruptcy Court for the Southern District
of Texas to employ Kroll Restructuring Administration, LLC as
claims, noticing, and solicitation agent.
Kroll will oversee the distribution of notices and will assist in
the maintenance, processing, and docketing of proofs of claim filed
in the Chapter 11 cases of the Debtors.
The hourly rates of the firm's professionals are as follows:
Analyst $30 - $60
Technology Consultant $35 - $110
Consultant/Senior Consultant $65 - $195
Director $175 - $245
Solicitation Consultant $220
Director of Solicitation $245
In addition, the firm will seek reimbursement for expenses
incurred.
Prior to the petition date, the Debtors provided Kroll an advance
payment in the amount of $75,000.
Benjamin Steele, a managing director at Kroll Restructuring
Administration, disclosed in a court filing that his firm is a
"disinterested person" as defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Benjamin J. Steele
Kroll Restructuring Administration LLC
55 East 52nd Street, 17th Floor
New York, NY 10055
Telephone: (212) 593-1000
About Monitronics International
Monitronics International, Inc. provides residential and commercial
customers with monitored home and business security systems, as
well as interactive and home automation services.
Monitronics International and its affiliates filed voluntary
petitions for relief under Chapter 11 of the Bankruptcy Code
(Bankr. S.D. Texas Lead Case No. 23-90332) on May 15, 2023. In the
petitions signed by its chief executive officer, William E. Niles,
Monitronics International disclosed $1 billion to $10 billion in
both assets and liabilities.
Judge Christopher M. Lopez oversees the cases.
The Debtors tapped Hunton Andrews Kurth, LLP and Latham & Watkins,
LLP as legal counsels; Alvarez & Marsal North America, LLC as
financial advisor; and PJT Partners, LP as investment banker. Kroll
Restructuring Administration, LLC is the claims, noticing, and
solicitation agent.
MONITRONICS INTERNATIONAL: Unsecureds Unimpaired in Prepack Plan
----------------------------------------------------------------
Monitronics International, Inc., et al., Joint Partial Prepackaged
Plan of Reorganization and a Disclosure Statement.
As a result of discussions with certain of their key creditor and
shareholder constituencies, the Debtors have entered into the
Restructuring Support Agreement, with (i) certain senior secured
term and relvolving loan lenders (the "Consenting 2019 Exit
Facility Lenders") under that certain Senior Secured Credit
Agreement, dated as of August 30, 2019, by and among Monitronics,
as borrower, and Encina Private Credit SPV, LLC ("Encina"), as
administrative agent, and the lenders party thereto from time to
time (as amended, restated, modified, supplemented, or replaced
from time to time in accordance with the terms thereof, the "2019
Exit Facility Credit Agreement"), (ii) certain prepetition term
loan lenders (the "Consenting 2019 Takeback Term Loan Lenders" and,
together with the Consenting 2019 Exit Facility Lenders, the
"Consenting Lenders") under that certain Loan Agreement, dated as
of August 30, 2019, by and among Monitronics, as borrower, and
Cortland Capital Market Services LLC ("Cortland"), as
administrative agent, and the lenders party thereto from time to
time (as amended, restated, modified, supplemented, or replaced
from time to time in accordance with the terms thereof, the "2019
Takeback Term Loan Credit Agreement"), and (iii) certain Holders of
existing equity interests in Monitronics ("Monitronics Equity
Interests" and, those party to the Restructuring Support Agreement,
the "Consenting Shareholders") (each of the foregoing described in
sub-clauses (i) – (iii) along with the Debtors, collectively, the
"Restructuring Support Parties").
Under the terms of the Restructuring Support Agreement, the
Restructuring Support Parties agreed to deleveraging transactions
(the "Restructuring") that would restructure the existing debt
obligations of the Debtors through the Plan.
The Restructuring Support Parties include a significant majority of
the Holders of the Debtors' funded debt (lenders holding in the
aggregate 100% of the 2019 Takeback Term Loan Facility (as defined
below) and approximately 71.9% of the 2019 Exit Credit Facilities
(as defined below) as of May 15, 2023) as well as a significant
majority of the Holders of Monitronics Equity Interests
(approximately 72.75% as of May 9, 2023). Such parties represent
the requisite voting majorities under the Bankruptcy Code for both
Class 3 (2019 Takeback Term Loan Claims) and Class 7 (Monitronics
Equity Interests). All other classes of Claims or Equity Interests
in the Plan are Unimpaired.
The Restructuring contemplates the following transactions:
* Pursuant to the Plan, a reduction of the Debtors' pro forma
total debt from approximately $1.09 billion as of the Petition Date
to $600 million upon emergence under a new term loan credit
facility (the "New Exit Facility") as described herein;
* Under the Plan, the Debtors' stakeholders receive treatment as
follows:
- Each Holder of claims under the 2019 Takeback Term Loan
Credit Agreement (the "2019 Takeback Term Loan Claims") totaling
approximately $794 million in principal amount as of May 9, 2023,
will receive (a) its pro rata share of Equity Subscription Rights
to subscribe for and purchase New Common Equity pursuant to the
Equity Rights Offering in accordance with the Rights Offering
Procedures as further described herein, (b) its pro rata share of
Debt Funding Rights to fund New Exit First-Out Term Loans pursuant
to the Debt Rights Offering in accordance with the Rights Offering
Procedures as further described herein, (c) its pro rata share of
100% of the New Common Equity, subject to dilution by New Common
Equity issued pursuant to the Equity Rights Offering (including the
Backstop Commitment Agreement), Class 7 Equity Elections, and the
Post-Emergence Incentive Plan, and (d) New Exit Facility Term Loans
in principal amount equal to its pro rata share of the
Distributable New Exit Facility Amount, distributed in the form of
either New Exit First-Out Term Loans or New Exit Second-Out Term
Loans based upon participation in the Equity Rights Offering and
Debt Rights Offering;
- Claims under the 2019 Exit Facility Credit Agreement (the
"2019 Exit Facility Claims") will be repaid in full in Cash with
the proceeds of the DIP Facility;
- Other Secured Claims, General Unsecured Claims, Intercompany
Claims, and Affiliate Equity Interests in any Monitronics
Subsidiary are Unimpaired by the Plan as further described herein;
and
- Each Holder of Monitronics Equity Interests will receive
either (a) its pro rata share of $3,000,000 (the "Class 7 Cash
Pool") or (b) solely to the extent that such Holder timely and
validly makes the Class 7 Equity Election on the Class 7 Equity
Election Form, such Holder's pro rata share of 4.65% of the New
Common Equity to be issued and outstanding as of the Effective
Date, subject to dilution by New Common Equity issued pursuant to
the Post-Emergence Incentive Plan (the "Class 7 Equity Pool").
* The Debtors will enter into a superpriority secured
postpetition debtor-in-possession financing facility (the "DIP
Facility" and, the lenders thereunder, the "DIP Lenders"),
participation in which shall be offered to all Consenting 2019
Takeback Term Loan Lenders and backstopped by the Ad Hoc Lender
Group (as defined below), in an aggregate principal amount of
$398,610,000 (inclusive of upfront fees paid-in-kind), the proceeds
of which will be used to refinance the 2019 Exit Facility Claims,
pay certain fees associated with the closing of the DIP Facility
and to provide liquidity to the Debtors' balance sheet, and which
will consist of (a) Tranche A DIP Facility Term Loans in an
aggregate principal amount of approximately $299 million and (b)
Tranche B DIP Facility Term Loans in an aggregate principal amount
of $100 million, in each case, on the terms and conditions set
forth in the DIP Facility Loan Documents (as defined in the Plan)
and which will receive the following treatment under the Plan on
the Effective Date:
- All accrued and unpaid interest on the DIP Facility Term
Loans shall be paid in Cash;
- Each DIP Facility Lender may elect to (i) apply such DIP
Facility Lender's Tranche A DIP Term Loans and Exit Fee (as defined
in the DIP Credit Agreement) to its funding obligations in respect
of the Debt Rights Offering and/or (ii) apply such DIP Facility
Lender's Tranche B DIP Term Loans to its funding obligations in
respect of the Equity Rights Offering (including Backstop
Commitments), in each case, in accordance with the Plan and the
Rights Offering Procedures;
- All outstanding principal amounts on account of the Tranche
A DIP Term Loans and the Exit Fee, after giving effect to the
application of amounts in satisfaction of the Debt Rights Offering
funding obligations described above, shall be repaid in Cash from a
pro rata share of 100% of the Cash proceeds of the Debt Rights
Offering, with any remaining unpaid amounts to be converted into an
equivalent principal amount of New Exit First-Out Term Loans; and
- All outstanding principal amounts on account of the Tranche
B DIP Term Loans, after giving effect to the application of amounts
in satisfaction of Equity Rights Offering funding obligations
described above, shall be repaid in full in Cash from the Cash
proceeds of the Equity Rights Offering and other available Cash;
* The Debtors will commence an offering (the "Equity Rights
Offering") of subscription rights (the "Equity Subscription
Rights") to purchase, in the aggregate, 69.44% of the total units
of New Common Equity to be issued and outstanding as of the
Effective Date, subject to dilution by the Post-Emergence Incentive
Plan (as defined in the Plan), for an aggregate purchase price of
$100 million, participation in which will be available to all
Holders of 2019 Takeback Term Loan Claims who participate in the
Debt Rights Offering (and as otherwise provided in the Rights
Offering Procedures and the Plan), and which will be backstopped by
the Ad Hoc Lender Group, in accordance with the terms and
conditions set forth in the Restructuring Support Agreement and the
Backstop Commitment Agreement (attached hereto as Exhibit C); and
* The Debtors will commence an offering (the "Debt Rights
Offering") of rights ("Debt Funding Rights") to fund New Exit
First-Out Term Loans in the aggregate principal amount of
$301,596,100, participation in which will be available to all
Holders of 2019 Takeback Term Loan Claims.
The Restructuring proposed by the Debtors will provide substantial
benefits to the Debtors and all of their stakeholders. The
Restructuring will leave the Debtors' businesses intact and
substantially de-levered, providing for the reduction of
approximately $500 million of debt upon emergence. This
de-leveraging will enhance the Debtors' long-term growth prospects
and competitive position and allow the Debtors to emerge from the
Chapter 11 Cases as reorganized entities better positioned to
withstand the competitive security and alarm services industry.
In addition, the Restructuring will allow the Debtors' management
team to focus on operational performance and value creation. A
significantly improved balance sheet will provide the Reorganized
Debtors with increased financial flexibility and the ability to
pursue value maximizing opportunities that will strengthen the
Reorganized Debtors' customer product and service offerings.
Moreover, the Restructuring proposed under the Plan provides
recoveries to all of the Debtors' stakeholders. As set forth below,
the Plan provides for a recovery to each class of non-Affiliate
Claims and Equity Interests in the form of Cash, debt, or equity,
rights to participate in new money debt and equity investments, or
a combination thereof. Distributions of equity in Reorganized
Monitronics will allow certain creditors and equityholders (at
their election) to participate in potential future upside in
Reorganized Monitronics.
Consummating the Restructuring in a timely manner, however, is of
critical importance. A swift and efficient chapter 11 process is
necessary in order for the Debtors to maintain their customer base
and relationships with dealers and other vendors. Moreover, the
pre-packaged bankruptcy process contemplated under the Plan
preserves value for all stakeholders while minimizing restructuring
costs and delays. Management's focus can then turn from balance
sheet management towards operational performance and value
creation. Failure to timely consummate the Plan, however, will
likely result in many Holders of Claims and Equity Interests of the
Debtors receiving little or no value on account of their Claims or
Equity Interests. The Debtors anticipate commencing the Chapter 11
Cases on or about May 15, 2023, and emerging from the chapter 11
process approximately 46 days thereafter.
Under the Plan, holders of Class 4 General Unsecured Claims will
receive either, in the discretion of the Debtors (with the
reasonable consent of the Required Consenting Lenders), (i) payment
in full in Cash, or (ii) such other treatment as to render such
Holder Unimpaired; provided, however, that no Holder of an Allowed
General Unsecured Claim shall receive any distribution for any
Claim that has previously been satisfied pursuant to a Final Order
of the Bankruptcy Court. Creditors will recover 100% of their
claims. Class 4 is unimpaired.
All consideration necessary for the Debtors and/or Reorganized
Debtors, as applicable, to make payments or distributions pursuant
to the Plan shall be obtained from Cash from the Debtors and/or
Reorganized Debtors, as applicable, including Cash from business
operations and the proceeds of the New Exit Facility, the Equity
Rights Offering, the Debt Rights Offering, and/or the Backstop
Commitments, as applicable. Further, the Debtors and the
Reorganized Debtors will be entitled to transfer funds between and
among themselves as they determine to be necessary or appropriate
to enable the Reorganized Debtors to satisfy their obligations
under the Plan. Except as set forth in the Plan, any changes in
intercompany account balances resulting from such transfers will be
accounted for and settled in accordance with the Debtors'
historical intercompany account settlement practices and will not
violate the terms of the Plan.
Please take note of the following key dates and deadlines for the
Chapter 11 cases as set forth in the Restructuring Support
Agreement:
Deadline for entry of (i) an order conditionally approving the
Disclosure Statement and the other Solicitation Materials on an
interim basis, (ii) the Interim DIP Order and (iii) the Rights
Offering Procedures Order will be 3 calendar days after the
Petition Date.
Voting Deadline for Holders of 2019 Takeback Term Loan Claims and
Holders of Monitronics Equity Interests to vote to accept or reject
the Plan will be on 4:00 p.m. (Prevailing Central Time) on June 16,
2023.
Deadline for entry of (i) the Final DIP Order, (ii) the Backstop
Commitment Approval Order, and (iii) the Confirmation Order will be
42 calendar days after the Petition Date.
Deadline for the Effective Date will be on June 30, 2023.
Attorney for the Debtor:
David A. Hammerman, Esq.
Jason B. Gott, Esq.
Helena Tseregounis, Esq.
Annemarie V. Reilly, Esq.
LATHAM & WATKINS LLP
1271 Avenue of the Americas
New York, NY 10020
Telephone: (212) 906-1200
Facsimile (212) 751-4864
- and -
Timothy A. ("Tad") Davidson II, Esq.
Ashley L. Harper
HUNTON ANDREWS KURTH LLP
600 Travis Street, Suite 4200
Houston, TX 77002
Telephone: (713) 220-4200
Facsimile: (713) 220-4285
A copy of the Disclosure Statement dated May 17, 2023, is available
at bit.ly/3InetC0 from Kroll, the claims agent.
About Monitronics International
Farmers Branch, Texas-based Monitronics International, Inc. (doing
business as Brinks Home) is an American company that offers home
security systems. It is primarily engaged in the business of
providing residential and commercial customers with monitored home
and business security systems, as well as interactive and home
automation services.
After reaching a deal with lenders on a restructuring plan,
Monitronics International and its affiliates sought Chapter 11
protection (Bankr. S.D. Tex. Lead Case No. 23-90332) on May 15,
2023.
In the petitions signed by CEO William E. Niles, Monitronics
International disclosed $1 billion to $10 billion in assets and
liabilities.
The Hon. Christopher M. Lopez oversees the cases.
The Debtors tapped HUNTON ANDREWS KURTH LLP and LATHAM & WATKINS
LLP as counsel; ALVAREZ & MARSAL NORTH AMERICA, LLC, as financial
advisor; PJT PARTNERS LP as investment banker; and KROLL
RESTRUCTURING ADMINISTRATION, LLC as claims agent.
MULCH AND STONE: Unsecureds to Get 100 Cents on Dollar in Plan
--------------------------------------------------------------
Mulch and Stone L.L.C., filed with the U.S. Bankruptcy Court for
the District of Maryland a Chapter 11 Plan of Reorganization under
Subchapter V dated May 22, 2023.
The Debtor is a Maryland company which operates a bulk mulch
delivery company located in Edgewater, Maryland. Jeffrey and
Carleen Heminger are the owners of the business.
The company delivers bulk mulch, gravel, and stone to both
residential and commercial properties in Maryland, District of
Columbia, and Virginia. Due to the secondary business income
streams not being what they should be, the Debtor was forced to
take merchant cash advances to help it reach its next busy season.
Ultimately, a slower than expected start to the main business
season led to cash flow issues and the Debtor was forced to file
bankruptcy to deal with these issues.
During the term of this Plan, the Debtor shall submit the
disposable income (or value of such disposable income) necessary to
the creditors and shall pay the creditors the sums set forth
herein. The term of this Plan begins on the date of confirmation of
this Plan and ends on the 36th month subsequent to that date.
The value of the property to be distributed under the Plan during
the term of the Plan is not less than the Debtor's projected
disposable income for that same period. Unsecured creditors holding
allowed claims will receive distributions, which the Debtor has
valued at approximately 100 cents on the dollar. The Plan also
provides for the payment of secured, administrative, and priority
claims in accordance with the Bankruptcy Code.
The Debtor will be paying the Class 5 secured vehicle lenders
according to the contracts with each lender as they have been
paying during the period prior to confirmation.
The Debtor expects to fully fund their plan with the Employee
Retention Credit they are due to receive from the United States
Treasury. Once these funds are available, the Debtor will make a
full payment to the debt in the plan. Additionally, the Debtor
will be selling additional equipment and trucks to fund the plan
while waiting for the Employee Retention Credit.
Finally, if the sales of equipment, trucks, and Employee Retention
Credit do not materialize within a reasonable period of time, the
Debtor will pay payments to the Class 4 creditors on a semi-annual
basis until the Debtor is fully able to fund the Plan with its
sales of equipment, trucks, and the Employee Retention Credit.
Class 3 consists of the Unsecured Claim of the IRS in the amount of
$2,500.00. This Class will receive a distribution of 100% of their
allowed claims.
The Debtor will be able to make payments of $13,391.00 every six
months to the Class 4 creditors until funds from sales of equipment
and the Employee Retention Credit are realized to pay the Plan in
full.
The funds from operating the Debtor's delivery business will be
used to make payments pending the receipt of the following sources
of funds. The receipt of the Employee Retention Credit for
approximately $200,000.00 and will be used for distributions to the
creditors.
The sale of two trucks and a sale of the Bobcat should recover
about $140,000.00 and will be used for distribution to the
creditors.
A full-text copy of the Subchapter V Plan dated May 22, 2023 is
available at https://urlcurt.com/u?l=ms5DXN from PacerMonitor.com
at no charge.
Attorney for Debtor:
Daniel A. Staeven, Esq.
Frost & Associates, LLC
839 Bestgate Road, Suite 400
Annapolis, MD 21401
Telephone: (410) 497-5947
Facsimile: (888) 235-8405
Email: daniel.staeven@frosttaxlaw.com
About Mulch and Stone
Mulch and Stone, LLC, is a Maryland company which operates a bulk
mulch delivery company located in Edgewater, Maryland.
Mulch and Stone filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. D. Md. Case No. 23 11088)
on Feb. 20, 2023, with as much as $1 million in both assets and
liabilities. Frost & Associates, LLC serves as the Debtor's
counsel.
NEW MILLENNIUM MEDICAL: Hearing Today on Cash Collateral Access
---------------------------------------------------------------
New Millennium Medical Ltd. asks the U.S. Bankruptcy Court for the
Northern District of Illinois, Western Division, for authority to
use cash collateral and provide adequate protection. A hearing on
the matter is set for May 31, 2023 at 11 a.m.
The Debtor has incurred a substantial additional debt by reason of
a determination regarding over-payments received from Medicare. Due
to this new substantial obligation, the Debtor will require a
reorganization to continue to remain in business and pay all its
creditors a reasonable sum. Should the Debtor be forced to
liquidate there will not be any funds available to pay creditors,
other than the secured creditor.
The Debtor's management has determined that a Chapter 11 filing
under Subchapter V is the best option to remain operational and
maximize any return for creditors, while maintaining employee jobs
and quality care for its customers. The Debtor will require the use
of cash collateral in order to maintain operations and reorganize.
Prior to the Petition Date, the Debtor borrowed certain sums of
money from Midland States Bank, pursuant to promissory notes,
business loan agreements, security agreements, pledge agreements,
collateral assignments, and other agreements, instruments,
certificates and documents. As of the Petition Date, there was and
remains due and owing from the Debtor to the Secured Lender under
the Secured Lender Loan Documents, the total amount, including
principal and interest of approximately $210,000.
As adequate protection for the Secured Lender's interest in the
cash collateral, the Debtor proposes to use the cash collateral
solely for the purposes outlined in the Interim Cash Collateral
Order.
The Debtor further proposes to:
(1) for any diminution in value of Secured Lender's interests
in the cash collateral from and after the Petition date, grant
Secured Lender a replacement lien on all of the Debtor's assets;
(2) for any diminution in value of Secured Lender's interests
in the cash collateral from and after the Petition date, grant
Secured Lender an administrative expense claim pursuant to 11
U.S.C. Section 507(b).
A copy of the motion is available at https://urlcurt.com/u?l=rxSEl1
from PacerMonitor.com.
About New Millennium Medical Ltd.
New Millennium Medical Ltd. operates a Chiropractic practice from
its leased premises in Belvidere, IL.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ill. Case No. 23-80634) on May 25,
2023. In the petition signed by Christopher Parrett, president, the
Debtor disclosed up to $500,000 in assets and up to $1 million in
liabilities.
Richard G Larsen, Esq., at SpringerLarsenGreene, LLC, represents
the Debtor as legal counsel.
NOVUSON SURGICAL: Seeks Cash Collateral Access
----------------------------------------------
Novuson Surgical, Inc. asks the U.S. Bankruptcy Court for the
Western District of Washington, at Seattle, to use cash collateral
on an interim basis.
The Debtor requires the use of cash collateral to pay its ongoing
operating expenses and continue necessary business operations.
Novuson identified three parties with prepetition security
interests in the Debtor's cash None of the Lenders perfected their
security interests prior to the Petition Date.
1. Headway Capital, LLC provided a Line of Credit to Novuson
for liquidity for its business operations. The current balance of
the Line of Credit is $56,885. Loan documents executed in
connection with the Line of Credit include a Business-Use Line of
Credit and Security Agreement dated December 28, 2022, but no
separate Security Agreement.
2. Sam Liao provided a loan to Novuson for liquidity for
necessary business funds. The current balance on the Liao Loan is
$7,500. Loan documents executed in connection with the Liao Loan
including a Promissory Note and a Security Agreement dated March 8,
2023. Under the Liao Loan, Novuson granted Liao a security interest
in "all of the Company's assets." The UCC-1 results for Washington
State do not reflect that Liao filed a financing statement or
otherwise perfected his security interest.
3. Stuart Mitchell provided two loans to Novuson for liquidity
for necessary business funds. The first loan has a current balance
of $20,000. The second loan has a current balance of $30,000. Loan
documents executed in connection with the first loan including a
Promissory Note and a Security Agreement dated, March 1, 2023 and
March 11, 2023.
The Debtor submits that no creditors hold a security interest in
its cash or cash proceeds, and therefore do not have an interest in
cash collateral. Nonetheless, the Lenders are adequately protected
because the Debtor proposes to grant the Lenders replacement liens
in the Debtor's postpetition cash and accounts receivable, and the
proceeds thereof, to the same extent and priority as any duly
perfected and unavoidable liens in cash collateral held by the
Lenders as of the Petition Date. To the extent necessary, Liao and
Mitchell have consented to the use of cash collateral.
A copy of the stipulation is available at
https://urlcurt.com/u?l=NRFqOG from PacerMonitor.com.
About Novuson Surgical
Novuson Surgical, Inc., a company in Bothell, Wash., filed a
petition under Chapter 11, Subchapter V of the Bankruptcy Code
(Bankr. W.D. Wash. Case No. 23-10728) on April 21, 2023, with
$100,000 to $500,000 in assets and $1 million to $10 million in
liabilities. Stuart B. Mitchell, president of Novuson Surgical,
signed the petition.
Judge Timothy W. Dore oversees the case.
Aditi Paranjpye, Esq., at Cairncross & Hempelmann, P.S., is the
Debtor's counsel.
OPULENT VACATIONS: Gets OK to Hire 'Ordinary Course' Contractors
----------------------------------------------------------------
Opulent Vacations, Inc. received approval from the U.S. Bankruptcy
Court for the District of Utah to employ ordinary course
contractors in this Chapter 11 case.
The Debtor requires the assistance of bookkeepers Sam Lincoln and
Jillian Vitale and realtors Bonnie Myrna Gaines, Carl Fair, and
Jacqueline Little.
Mr. Lincoln assists the Debtor with its bookkeeping and general
accounting as a 1099 contractor. The Debtor pays him $1,000 per
week for his services.
Ms. Vitale also assists the Debtor with its bookkeeping and general
accounting for $2,500 per month.
Ms. Gaines, Mr. Fair, and Ms. Little serve as the Debtor's brokers
for its California, Nevada, and Hawaii operations, respectively.
They are paid a 0.5 percent commission on each of the Debtor's
bookings in the respective states.
About Opulent Vacations
Opulent Vacations, Inc. offers high-end luxury vacation homes in
scenic destinations like Park City, Lake Tahoe, Palm Springs and
San Diego.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Utah Case No. 23-21941) on May 15, 2023.
In the petition signed by its chief executive officer, Jeff Jenson,
the Debtor disclosed up to $10 million in both assets and
liabilities.
Judge Joel T. Marker oversees the case.
The Debtor tapped Jeffrey L. Trousdale, Esq., at Cohne Kinghorn, PC
as legal counsel and Rocky Mountain Advisory, LLC as accountant and
financial advisor.
OPULENT VACATIONS: Taps Cohne Kinghorn as Bankruptcy Counsel
------------------------------------------------------------
Opulent Vacations, Inc. seeks approval from the U.S. Bankruptcy
Court for the District of Utah to employ Cohne Kinghorn, PC as its
bankruptcy counsel.
The firm will render these services:
(a) advise the Debtor with respect to its duties and powers
under the Bankruptcy Code, Bankruptcy Rules, and related laws;
(b) assist the Debtor with respect to legal issues which may
arise from time to time in its Chapter 11 case;
(c) if the Debtor deems appropriate or necessary, negotiate
and prepare an asset purchase agreement and seek entry of an order
permitting the sale of assets pursuant to Section 363 of the
Bankruptcy Code, and related relief;
(d) negotiate and prepare a plan of reorganization, disclosure
statement (if applicable) and all related agreements or documents,
and take any necessary action on behalf of the Debtor to obtain
confirmation of such plan;
(e) assist the Debtor in collecting, preserving and, if
appropriate, disposing of assets;
(f) assist the Debtor in determining the validity and amount
of claims;
(g) advise and represent the Debtor with respect to causes of
action, which it may have against others;
(h) if such settlements are in the best interest of the Debtor
and its creditors, negotiate, document and present to the court for
approval; and
(i) render legal advice and services to the Debtor regarding
such other matters as may arise from time to time in this case.
The hourly rates of the firm's counsel and staff are as follows:
Jeffrey L. Trousdale $265
Mashell Parks $160
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a retainer of $30,000 from the Debtor on May 9,
2023.
Jeffrey Trousdale, Esq., an attorney at Cohne Kinghorn, 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:
Jeffrey L. Trousdale, Esq.
Cohne Kinghorn, PC
111 E. Broadway, 11th Floor
Salt Lake City, UT 84111
Telephone: (801) 363-4300
Email: jtrousdale@ck.law
About Opulent Vacations
Opulent Vacations, Inc. offers high-end luxury vacation homes in
scenic destinations like Park City, Lake Tahoe, Palm Springs and
San Diego.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Utah Case No. 23-21941) on May 15, 2023.
In the petition signed by its chief executive officer, Jeff Jenson,
the Debtor disclosed up to $10 million in both assets and
liabilities.
Judge Joel T. Marker oversees the case.
The Debtor tapped Jeffrey L. Trousdale, Esq., at Cohne Kinghorn, PC
as legal counsel and Rocky Mountain Advisory, LLC as accountant and
financial advisor.
OPULENT VACATIONS: Taps Rocky Mountain Advisory as Accountant
-------------------------------------------------------------
Opulent Vacations, Inc. seeks approval from the U.S. Bankruptcy
Court for the District of Utah to employ Rocky Mountain Advisory,
LLC as accountant and financial advisor.
The firm will render these services:
(a) render accounting assistance and oversight regarding the
preparation of the financial reports, operating reports, and other
reports;
(b) render assistance in connection with the Debtor's
reorganization and other business matters;
(c) assist the Debtor in keeping reliable and accurate books
and records on a going forward basis;
(d) assist the Debtor in connection with analysis and
objections to claims;
(e) prepare any necessary budgets, financial projections,
liquidation analyses or other financial estimates;
(f) as necessary, coordinate with and provide information,
advice and input to the Debtor's tax preparers and provide tax
preparation services if needed;
(g) advise the Debtor on any other financial matters that may
arise in the Debtor's estate; and
(h) render accounting advice and services to the Debtor
regarding such other matters as may arise from time to time in this
case.
The hourly rates of the firm's professionals are as follows:
John Curtis $345
Jennifer Yakumo $250
Josh Gifford for advisory work $265
Josh Gifford for tax work $185
Other Professionals $240 - $345
In addition, the firm will seek reimbursement for expenses
incurred.
The firm requested an initial retainer in the amount of $10,000.
John Curtis, CPA, a managing member of Rocky Mountain Advisory,
disclosed in a court filing that his firm is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
John H. Curtis
Rocky Mountain Advisory, LLC
15 W. South Temple, Suite 500
Salt Lake City, UT 84101
Telephone: (801) 428-1604
Facsimile: (801) 428-1612
Email: jcurtis@rockymountainadvisory.com
About Opulent Vacations
Opulent Vacations, Inc. offers high-end luxury vacation homes in
scenic destinations like Park City, Lake Tahoe, Palm Springs and
San Diego.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Utah Case No. 23-21941) on May 15, 2023.
In the petition signed by its chief executive officer, Jeff Jenson,
the Debtor disclosed up to $10 million in both assets and
liabilities.
Judge Joel T. Marker oversees the case.
The Debtor tapped Jeffrey L. Trousdale, Esq., at Cohne Kinghorn, PC
as legal counsel and Rocky Mountain Advisory, LLC as accountant and
financial advisor.
PANEVAS LLC: Files Emergency Bid to Use Cash Collateral
-------------------------------------------------------
Panevas, LLC asks the U.S. Bankruptcy Court for the Middle District
of Florida, Tampa Division, for authority to use cash collateral to
continue to operate its business.
The Debtor owns two parcels of real property and its improvements
located at 19206 U.S. Highway 19 N. and Harn Boulevard, Clearwater,
Florida 33764. The Debtor also utilizes office space located at
5210 Webb Road, Tampa, FL 33615, which property is owned by
Astartis LLC. There is no lease between the Debtor and Astartis for
the utilization of the office space nor is any rent paid for the
same.
The Debtor is indebted to BayFirst National Bank, formerly known as
First Home Bank, a national banking who holds a mortgage on the
Real Property and its improvements.
As of the Petition Date, the Debtor's obligation to the Bank was in
the amount of $1.9 million.
Based upon information currently available to the Debtor, the value
of the Real Property does not exceed $1 million.
The Debtor's use of cash collateral would be conditioned upon (a)
continuing the operation of the Debtor's business, (b) compliance
with the Proposed Budget to within 10% variance, (c) maintenance of
the Collateral, (d) continuation of all insurance coverages, and
(e) granting of inspection rights in favor of the Bank.
A copy of the motion is available at https://urlcurt.com/u?l=ff4B3i
from PacerMonitor.com.
A copy of the budget is available at https://urlcurt.com/u?l=XaztXj
from PacerMonitor.com.
The Debtor projects total expenses, on a weekly basis, as follows:
$2,712 for Week 1;
$2,712 for Week 2;
$2,712 for Week 3;
$2,712 for Week 4;
$2,712 for Week 5; and
$2,712 for Week 6.
About Panevas LLC
Panevas, LLC, a company in Tampa, Fla., filed its voluntary
petition for relief under Chapter 11 of the Bankruptcy Code (Bankr.
M.D. Fla. Case No. 23-01589) on April 21, 2023, with $1,011,963 in
assets and $2,613,430 in liabilities. Panayiotis Vasiloudes,
manager, signed the petition.
Stephenie Biernacki Anthony, Esq., at Anthony & Partners, LLC
represents the Debtor as counsel.
PEAR THERAPEUTICS: 4 Firms Want to Purchase Pieces of Company
-------------------------------------------------------------
Gabriel Perna of Modern Healthcare reports that four companies have
stepped forward to spend around $6 million and buy pieces of Pear
Therapeutics, a once-prominent digital therapeutics company in
Chapter 11 bankruptcy reorganization.
Click Therapeutics, Nox Health, Welt and Harvest Bio agreed to buy
the remaining parts of Pear. The sales plan is scheduled to be
heard Monday by U.S. Bankruptcy Court for the District of Delaware,
according to court filings.
Sign up for the Digital Health Intelligence newsletter and keep up
with one the industry's fastest growing sectors.
The potential sales price is a dramatic turn for the company, which
went public in December 2021 through special purpose acquisition
company Thimble Point Acquisition in a deal that valued Pear at
$1.6 billion. Pear, which reported $13 million in revenue last year
and lost around $123 million, filed for bankruptcy in April. In the
Chapter 11 filing, it listed $65.6 million in assets and $51
million in debt.
Pear developed solutions for opioid use disorder and insomnia,
which were among the first digital therapeutics to receive
clearance from the Food and Drug Administration. But it ran into
challenges with payer reimbursement. Founder and CEO Corey McCann
said in a LinkedIn post shortly after it filed for bankruptcy that
the company had failed because of denials from payers and market
conditions.
According to court filings, Click Therapeutics, a digital
therapeutics company, seeks to buy different patents from Pear for
$70,000. Nox Health, a company that develops diagnostics for
sleeping, wants to buy Pear’s insomnia therapeutics product for
$3.9 million. Welt, a digital biomarkers company, plans to buy
Pear’s migraine-related assets for $50,000. Harvest Bio seeks to
acquire Pear’s substance use disorder therapeutic as well as
various trademarks, licenses and patients for $2.03 million.
About Pear Therapeutics
Pear Therapeutics, Inc. is a commercial-stage healthcare company
pioneering a new class of software-based medicines, sometimes
referred to as Prescription Digital Therapeutics, which uses
software to treat diseases directly.
Pear Therapeutics, Inc. and Pear Therapeutics (US), Inc. filed
their voluntary petitions for relief under Chapter 11 of the
Bankruptcy Code (Bankr. D. Del. Lead Case No. 23-10429) on April 7,
2023. Christopher Guiffre, chief financial officer and chief
operating officer, signed the petitions. In the petitions, the
Debtors reported $10 million to $50 million in both assets and
liabilities.
Judge Thomas M. Horan oversees the cases.
The Debtors tapped Foley Hoag, LLP as general bankruptcy counsel;
Gibbons, P.C. as Delaware counsel; Wilmer Cutler Pickering Hale and
Dorr, LLP as special counsel; and Sonoran Capital Advisors, LLC and
MTS Health Partners, L.P. as financial advisors. Stretto, Inc. is
the administrative advisor and claims and noticing agent.
PEPPERONI GRILL: UST Says Revenues Not Sufficient to Fund Plan
--------------------------------------------------------------
John P. Fitzgerald, III, Acting United States Trustee for Region
Four, filed his objection to the Disclosure Statement and Plan of
Reorganization of Pepperoni Grill, LLC, filed on May 11, 2022.
According to the UST, the Disclosure Statement does not include
historical financial information, such as cash flow statements and
profit/loss statements, which would give creditors and other
parties in interest the ability to compare the debtor's post-filing
financial performance with the cash flow/distribution projections
for the five-year term of the plan.
The UST points out that in the event revenues from the debtor's
operations are not sufficient to fund the proposed Amended Plan,
the Amended Plan states that Lisa and James Wells will make
additional capital contributions. However, the Debtor has not
disclosed whether the Wells have the financial ability to do so
when needed. Pepperoni Grill, LLC is a family operated business.
Lisa Wells, James Wells and their son, Dylan Wells are employed on
a full-time basis by Pepperoni Grill, LLC. Sufficient disclosure
would require the debtor to demonstrate the Wells have the
financial wherewithal to contribute to the plan, as needed. That
information isn't contained in the Disclosure Statement.
The UST asserts that creditors cannot make an informed decision
regarding whether to accept or reject the Amended Plan based on the
information contained in the Disclosure Statement since it contains
no information concerning the Wells' financial ability to make
additional capital contributions to assist the debtor in funding
the Amended Plan. Without this information the Disclosure Statement
does not meet the criteria set out in 11 U.S.C. Sec. 1125(b).
The UST complains that the Debtor's Budget exhibit to the Amended
Plan demonstrates the debtor does not have the ability generate
sufficient revenue to make the payments required by the Amended
Plan and to pay all outstanding post-petition payroll taxes, sales
tax and UST fees prior to confirmation as proposed by the Amended
Plan.
About Pepperoni Grill
Pepperoni Grill, LLC filed a voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. W. Va. Case No.
22-20161) on Oct. 14, 2022, with as much as $1 million in both
assets and liabilities. Jo A. Roderick, sole member, signed the
petition.
Judge B. McKay Mignault oversees the case.
The Debtor tapped Joseph W. Caldwell, Esq., as legal counsel and
Michelle Steele as bookkeeper.
PERIMETER ORTHOPAEDICS: Leon Jones Named Subchapter V Trustee
-------------------------------------------------------------
The U.S. Trustee for Region 21 appointed Leon Jones, Esq., a
partner at Jones & Walden, LLC, as Subchapter V trustee for
Perimeter Orthopaedics, P.C. and Perimeter Outpatient Surgery
Associates, Inc.
Mr. Jones will be paid an hourly fee of $450 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Jones declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Leon S. Jones, Esq.
699 Piedmont Ave. NE
Atlanta, GA 30308
Phone: (404) 564-9300
Email: ljones@joneswalden.com
About Perimeter
Perimeter Orthopaedics, P.C. and Perimeter Outpatient Surgery
Associates, Inc. filed petitions under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. N.D. Ga. Case No. 23-20555) on May 17,
2023. At the time of the filing, Perimeter Orthopaedics reported as
much as $50,000 in assets and $1 million to $10 million in
liabilities while Perimeter Outpatient reported as much as $50,000
in assets and $500,001 to $1 million in liabilities.
The Debtors are represented by William A. Rountree, Esq., at
Rountree Leitman Klein & Geer, LLC.
PG&E CORP: Justices Stay Out of Interest Rate Fight
---------------------------------------------------
Rick Archer of Law360 reports that the U.S. Supreme Court on
Monday, May 22, 2023, declined to disturb a Ninth Circuit ruling
that trade creditors in the Chapter 11 case of Pacific Gas &
Electric were entitled to a higher rate of post-bankruptcy interest
on their claims.
About PG&E Corporation
PG&E Corporation (NYSE: PCG) -- http://www.pgecorp.com/-- is a
Fortune 200 energy-based holding company, headquartered in San
Francisco. It is the parent company of Pacific Gas and Electric
Company, an energy company that serves 16 million Californians
across a 70,000-square-mile service area in Northern and Central
California.
PG&E Corporation and its regulated utility subsidiary, Pacific Gas
and Electric Company, faced extraordinary challenges relating to a
series of catastrophic wildfires that occurred in Northern
California in 2017 and 2018. The utility faced an estimated $30
billion in potential liability damages from California's deadliest
wildfires of 2017 and 2018.
On Jan. 29, 2019, PG&E Corp. and its primary operating subsidiary,
Pacific Gas and Electric Company, filed voluntary Chapter 11
petitions (Bankr. N.D. Cal. Lead Case No. 19-30088). As of Sept.
30, 2018, the Debtors, on a consolidated basis, had reported $71.4
billion in assets on a book value basis and $51.7 billion in
liabilities on a book value basis.
Weil, Gotshal & Manges LLP and Cravath, Swaine & Moore LLP served
as PG&E's legal counsel, Lazard as its investment banker and
AlixPartners, LLP as the restructuring advisor to PG&E. Prime Clerk
LLC is the claims and noticing agent.
PG&E has appointed James A. Mesterharm, a managing director at
AlixPartners, LLP, and an authorized representative of AP Services,
LLC, to serve as Chief Restructuring Officer. In addition, PG&E
appointed John Boken also a Managing Director at AlixPartners and
an authorized representative of APS, to serve as Deputy Chief
Restructuring Officer.
Morrison & Foerster LLP served as the Debtors' special regulatory
counsel. Munger Tolles & Olson LLP also served as special
counsel.
The Office of the U.S. Trustee appointed an official committee of
creditors on Feb. 12, 2019. The Committee retained Milbank LLP as
counsel; FTI Consulting, Inc., as financial advisor; Centerview
Partners LLC as investment banker; and Epiq Corporate
Restructuring, LLC as claims and noticing agent.
On Feb. 15, 2019, the U.S. trustee appointed an official committee
of tort claimants. The tort claimants' committee is represented by
Baker & Hostetler LLP.
* * *
PG&E Corporation and Pacific Gas and Electric Company announced
July 1, 2020, that PG&E has emerged from Chapter 11, successfully
completing its restructuring process and implementing PG&E's Plan
of Reorganization ("Plan") that was confirmed by the United States
Bankruptcy Court on June 20, 2020.
For the benefit of fire victims, the Plan provided for a Fire
Victim Trust, which was funded with an oft-stated value of $13.5
billion, to be half in cash and half in new company PG&E common
stock. The $6.75 billion in cash was paid. With respect to the
stock consideration, 478 million shares of PG&E stock were
delivered to the Fire Victim Trust in accordance with an agreed-to
formula under the Plan.
PHI GROUP: Incurs $1.8 Million Net Loss in Third Quarter
--------------------------------------------------------
PHI Group, Inc. filed with the Securities and Exchange Commission
its Quarterly Report on Form 10-Q disclosing a net loss of $1.78
million on $0 of total revenues for the three months ended March
31, 2023, compared to a net loss of $2.05 million on $5,000 of
total revenues for the three months ended March 31, 2022.
For the nine months ended March 31, 2023, the Company reported a
net loss of $4.22 million on $25,000 of total revenues compared to
a net loss of $18.60 million on $30,000 of total revenues for the
nine months ended March 31, 2022.
As of March 31, 2023, the Company had $319,865 in total assets,
$8.61 million in total liabilities, and a total stockholders'
deficit of $8.28 million.
The Company has accumulated deficit of $75,932,642 as of March 31,
2023. For the quarter ended March 31, 2023, the Company incurred a
net loss. The Company said these factors as well as the uncertain
conditions that the Company faces in its day-to-day operations with
respect to cash flows create an uncertainty as to the Company's
ability to continue as a going concern.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/704172/000149315223018544/form10-q.htm
About PHI Group
Headquartered in Irvine, California, PHI Group, Inc.
(www.phiglobal.com) is primarily engaged in mergers and
acquisitions, advancing PHILUX Global Funds, SCA, SICAV-RAIF, a
"Reserved Alternative Investment Fund" under the laws of
Luxembourg, and establishing the Asia Diamond Exchange in Vietnam.
Besides, the Company provides corporate finance services, including
merger and acquisition advisory and consulting services for client
companies through its wholly owned subsidiary PHILUX Capital
Advisors, Inc. (formerly PHI Capital Holdings, Inc.) and invests in
selective industries and special situations aiming to potentially
create significant long-term value for the Company's shareholders.
PHILUX Global Funds intends to include a number of sub-funds for
investment in select growth opportunities in the areas of
agriculture, renewable energy, real estate, infrastructure, and the
Asia Diamond Exchange in Vietnam.
PHI Group reported a net loss of $21.15 million for the year ended
June 30, 2022, compared to a net loss of $6.55 million for the year
ended June 30, 2021. As of Dec. 31, 2022, the Company had $508,632
in total assets, $7.39 million in total liabilities, and a total
stockholders' deficit of $6.88 million.
Bangalore, India-based M.S. Madhava Rao, the Company's auditor,
issued a "going concern" qualification in its report dated Jan. 13,
2023, citing that Company has an accumulated deficit of $71,717,973
and had a negative cash flow from operations amounting to
$1,545,570 for the year ended June 30, 2022. These factors raise
substantial doubt about the Company's ability to continue as a
going concern.
PLASTIQ INC: Hits Chapter 11 Bankruptcy Protection
--------------------------------------------------
Gary Leff of View from the Wing reports that payments company
Plastiq has filed for Chapter 11 bankruptcy protection.
Many frequent flyers use Plastiq to pay bills with a credit card,
they charge the card (and you earn miles) and they pay
electronically or via check. Their fees have increased in recent
years and are now up to 2.9%, but some find it worthwhile for
paying things like mortgages and car payments that can't otherwise
be charged -- especially when earning an initial bonus for a new
credit card, or earning high spend bonuses and credit towards elite
status.
Plastiq has been around for about 8 years. The company announced
plans to go public via SPAC last year, but the deal terminated in
March. They faced a brief interruption in service when Silicon
Valley Bank failed. Now they've filed for chapter 11 bankruptcy
protection in Delaware.
About Plastiq Inc.
Founded in 2012, Plastiq is a leading B2B payments company for
SMBs. Plastiq has helped tens of thousands of businesses improve
cash flow with instant access to working capital, while automating
and enabling control over all aspects of accounts payable and
receivable. Plastiq provides growing finance teams with technology
and know-how once reserved for only large enterprises.
The flagship product, Plastiq Pay, pioneered a way for businesses
to pay suppliers by credit card regardless of acceptance as an
alternative to expensive, scarce bank loan options. Plastiq Accept
offers an alternative to expensive merchant services, enabling
businesses to accept credit cards with no merchant fees and get
paid across any customer touch point, including a website, invoice,
checkout process, and in person via QR code.
Plastiq Inc. and affiliates sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Del. Case No. 23-10671) on May 24,
2023.
In the petition filed by Vladimir Kasparov, as chief restructuring
officer, the Debtor reports estimated assets and liabilities
between $50 million and $100 million each.
The Debtors have Young, Conaway, Stargatt & Taylor LLP as counsel;
and
TRIPLE P RTS, LLC, as restructuring advisor. KURTZMAN CARSON
CONSULTANTS LLC is the claims agent.
PRESTON URGENT: Seeks to Hire Dorinda Kisner CPA as Accountant
--------------------------------------------------------------
Preston Urgent Care Family Practice, LLC seeks approval from the
U.S. Bankruptcy Court for the Northern District of West Virginia to
employ Dorinda Kisner CPA, PLLC as accountant.
The Debtor requires an accountant to perform payroll services and
prepare paperwork for employer retention tax program.
Dorinda Kisner CPA will be compensated at the rate of $225 for its
services.
The firm can be reached at:
Dorinda Kisner CPA, PLLC
1003 East State Avenue
Terra Alta, WV 26764
Telephone: (304) 789-6082
Facsimile: (304) 789-6014
Email: info@kisnercpa.com
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 Urgent Care Family Practice, signed the petition.
Judge David L. Bissett oversees the case.
The Debtor tapped Martin P. Sheehan, Esq., at Sheehan & Associates,
PLLC as legal counsel and Dorinda Kisner CPA, PLLC as accountant.
PURDUE PHARMA: Gets Court OK for Up to $6.7M Executive Bonuses
--------------------------------------------------------------
Evan Ochsner of Bloomberg Law reports that Purdue Pharma won
approval to pay up to $6.7 million in executive bonuses as the
manufacturer's leaders navigate its controversial bankruptcy case
to the finish line.
The bonuses include up to $2.9 million for Purdue's CEO Craig
Landau, $1.3 million for its CFO and $2.5 million for its general
counsel, according to filings.
Purdue also won the US Bankruptcy Court for the Southern District
of New York’s approval to pay up to $15.1 million in retention
compensation to other employees.
About Purdue Pharma LP
Purdue Pharma L.P. and its subsidiaries --
http://www.purduepharma.com/-- develop and provide prescription
medicines and consumer products that meet the evolving needs of
healthcare professionals, patients, consumers and caregivers.
Purdue's subsidiaries include Adlon Therapeutics L.P., focused on
treatment for Attention-Deficit/Hyperactivity Disorder (ADHD) and
related disorders; Avrio Health L.P., a consumer health products
company that champions an improved quality of life for people in
the United States through the reimagining of innovative product
solutions; Imbrium Therapeutics L.P., established to further
advance the emerging portfolio and develop the pipeline in the
areas of CNS, non-opioid pain medicines, and select oncology
through internal research, strategic collaborations and
partnerships; and Greenfield Bioventures L.P., an investment
vehicle focused on value-inflection in early stages of clinical
development.
Opioid makers in the U.S. are facing pressure from a crackdown on
the addictive drug in the wake of the opioid crisis and as state
attorneys general file lawsuits against manufacturers. More than
2,000 states, counties, municipalities and Native American
governments have sued Purdue Pharma and other pharmaceutical
companies for their role in the opioid crisis in the U.S., which
has contributed to the more than 700,000 drug overdose deaths in
the U.S. since 1999.
OxyContin, Purdue Pharma's most prominent pain medication, has been
the target of over 2,600 civil actions pending in various state and
federal courts and other fora across the United States and its
territories.
On Sept. 15 and 16, 2019, Purdue Pharma L.P. and 23 affiliated
debtors each filed a voluntary petition for relief under Chapter 11
of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No.
19-23649), after reaching terms of a preliminary agreement for
settling the massive opioid litigation. The Debtors' consolidated
balance sheet as of Aug. 31, 2019, showed $1.972 billion in assets
and $562 million in liabilities.
U.S. Bankruptcy Judge Robert Drain oversees the cases.
The Debtors tapped Davis Polk & Wardwell, LLP and Dechert, LLP as
legal counsels; PJT Partners as investment banker; AlixPartners as
financial advisor; and Grant Thornton, LLP as tax structuring
consultant. Prime Clerk, LLC, is the claims agent.
Akin Gump Strauss Hauer & Feld LLP and Bayard, P.A., represent the
official committee of unsecured creditors appointed in the Debtors'
bankruptcy cases.
David M. Klauder, Esq., is the fee examiner appointed in the
Debtors' cases. The fee examiner is represented by Bielli &
Klauder, LLC.
* * *
U.S. Bankruptcy Judge Robert Drain in early September 2021 approved
a plan to turn Purdue into a new company (Knoa Pharma LLC) no
longer owned by members of the Sackler family, with its profits
going to fight the opioid epidemic. The Sackler family agreed to
pay $4.3 billion over nine years to the states and private
plaintiffs and in exchange for a lifetime legal immunity. The deal
resolves some 3,000 lawsuits filed by state and local governments,
Native American tribes, unions, hospitals and others who claimed
the company's marketing of prescription opioids helped spark and
continue an overdose epidemic.
Separate appeals to approval of the Plan have already been filed by
the U.S. Bankruptcy Trustee, California, Connecticut, the District
of Columbia, Maryland, Rhode Island and Washington state, plus some
Canadian local governments and other Canadian entities.
In early March 2022, Purdue Pharma reached a nationwide settlement
over its role in the opioid crisis, with the Sackler family members
boosting their cash contribution to as much as $6 billion. The
settlement was hammered out with attorneys general from the eight
states -- California, Connecticut, Delaware, Maryland, Oregon,
Rhode Island, Vermont and Washington -- and D.C. who had opposed
the previous settlement.
RBJ PROPERTIES: Stephen Metz Named Subchapter V Trustee
-------------------------------------------------------
John Fitzgerald, III, Acting U.S. Trustee for Region 4, appointed
Stephen Metz, Esq., at Offit Kurman as Subchapter V trustee for RBJ
Properties, LLC.
Mr. Metz will be paid an hourly fee of $495 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Metz declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Stephen Metz, Esq.
Offit Kurman
4800 Montgomery Lane, 9th Floor
Bethesda, Maryland 20814
Phone: (240) 507-1723
Email: smetz@offitkurman.com
About RBJ Properties
RBJ Properties, LLC is a full-service real estate remodeling and
real estate development company servicing Maryland.
RBJ sought protection under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. D. Md. Case No. 23-13383) on May 15, 2023. In the petition
signed by Lafonte Johnson, sole member, the Debtor listed $1
million to $10 million in both assets and liabilities.
Judge Nancy V. Alquist oversees the case.
Robert N. Grossbart, Esq., at Grossbart, Portney and Rosenberg, PA
serves as the Debtor's counsel.
RBJ PROPERTIES: Taps Grossbart Portney and Rosenberg as Counsel
---------------------------------------------------------------
RBJ Properties, LLC seeks approval from the U.S. Bankruptcy Court
for the District of Maryland to employ Grossbart, Portney and
Rosenberg, PA as its bankruptcy counsel.
The firm will render these services:
(a) file the required schedules, statements, and reports;
(b) settle negotiations;
(c) advise concerning administration of the estate;
(d) file necessary motions;
(e) defense of any contested matters or adversary proceedings
involving the Debtor in this court; and
(f) confirm the disclosure statement and plan.
Robert Grossbart, Esq., the main attorney in this engagement, will
be paid at his hourly rate of $605.
Mr. Grossbart 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 N. Grossbart, Esq.
Grossbart, Portney and Rosenberg, PA
100 N. Charles St., 20th Floor
Baltimore, MD 21201
Telephone: (410) 837-0590
Facsimile: (410) 837-0085
Email: Robert@Grossbartlaw.com
About RBJ Properties
RBJ Properties, LLC is a full-service real estate remodeling and
real estate development company servicing Maryland.
RBJ sought protection under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. D. Md. Case No. 23-13383) on May 15, 2023. In the petition
signed by Lafonte Johnson, sole member, the Debtor listed $1
million to $10 million in both assets and liabilities.
Judge Nancy V. Alquist oversees the case.
Robert N. Grossbart, Esq., at Grossbart, Portney and Rosenberg, PA
serves as the Debtor's counsel.
REEVES FARM: Taps Johnson Pope Bokor Ruppel & Burns as Counsel
--------------------------------------------------------------
Reeves Farm Landco, LLC seeks approval from the U.S. Bankruptcy
Court for the Southern District of Alabama to employ Johnson Pope
Bokor Ruppel & Burns, LLP as its counsel.
The firm will render these services:
(a) take necessary steps to analyze and pursue any causes of
action, if in the best interest of the estate;
(b) prepare legal papers;
(c) assist the Debtor in taking all legally appropriate steps
to effectuate compliance with the Bankruptcy Code; and
(d) assist with the closing of any sales.
Edward Peterson, Esq., the main attorney in this engagement, will
be paid at his hourly rate of $450.
The firm received a pre-bankruptcy retainer of $30,000 from the
Debtor.
Mr. Peterson 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:
Edward J. Peterson, Esq.
Johnson Pope Bokor Ruppel & Burns, LLP
401 E. Jackson Street, Ste. 3100
Tampa, FL 33602
Telephone: (813) 225-2500
Email: epeterson@jpfirm.com
About Reeves Farm Landco
Reeves Farm Landco, LLC is a single asset real estate (as defined
in 11 U.S.C. Section 101(51B)). It is based in Spanish Fort, Ala.
Reeves Farm Landco filed a petition for relief under Chapter 11 of
the Bankruptcy Code (Bankr. S.D. Ala. Case No. 23-10844) on April
14, 2023. In the petition filed by Julius Marion Uter, manager, the
Debtor reported between $1 million and $10 million in both assets
and liabilities.
Judge Jerry C. Oldshue oversees the case.
Edward J. Peterson, Esq., at Johnson Pope Bokor Ruppel & Burns, LLP
serves as the Debtor's counsel.
REMARK HOLDINGS: Incurs $8.2 Million Net Loss in First Quarter
--------------------------------------------------------------
Remark Holdings, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $8.16 million on $826,000 of revenue for the three months ended
March 31, 2023, compared to a net loss of $25.43 million on $4.67
million of revenue for the three months ended March 31, 2022.
As of March 31, 2023, the Company had $14.17 million in total
assets, $39.95 million in total liabilities, and a total
stockholders' deficit of $25.78 million.
Remark stated, "Our history of recurring operating losses, working
capital deficiencies and negative cash flows from operating
activities give rise to, and management has concluded that there
is, substantial doubt regarding our ability to continue as a going
concern. Our independent registered public accounting firm, in its
report on our consolidated financial statements for the year ended
December 31, 2022, has also expressed substantial doubt about our
ability to continue as a going concern. Our consolidated financial
statements do not include any adjustments that might result from
the outcome of this uncertainty.
"We intend to fund our future operations and meet our financial
obligations through revenue growth from our AI and data analytics
offerings. We cannot, however, provide assurance that revenue,
income and cash flows generated from our businesses will be
sufficient to sustain our operations in the twelve months following
the filing of this Form 10-Q. As a result, we are actively
evaluating strategic alternatives including debt and equity
financings.
"Conditions in the debt and equity markets, as well as the
volatility of investor sentiment regarding macroeconomic and
microeconomic conditions (in particular, as a result of the
COVID-19 pandemic, global supply chain disruptions, inflation and
other cost increases, and the geopolitical conflict in Ukraine),
will play primary roles in determining whether we can successfully
obtain additional capital. We cannot be certain that we will be
successful at raising additional capital."
Management Commentary
"In Q1 2023, we continue to expand our Remark AI footprint into the
U.S. and Europe. The demand for our AI platform is unprecedented
as companies and governments need a solution to help them drive
effectiveness and save on costs," noted Kai-Shing Tao, chairman and
chief executive officer of Remark Holdings. "With China reopening
itself for business, we have positioned ourselves to handle the
growth from both sides of the pacific. Looking forward, we are
confident about our continued growth with existing customers and
look forward to our rapid expansion into Latin American and the
Middle East this quarter and beyond. The foundation that we have
put in place over the past nine years has allowed us to quickly
expand into new territories and verticals. Finally, to fully
unleash the power of our AI platform, we will launch our SaaS
platform with a major cloud provider."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1368365/000136836523000046/mark-20230331.htm
About Remark Holdings
Remark Holdings, Inc. (NASDAQ: MARK) --
http://www.remarkholdings.com-- delivers an integrated suite of AI
solutions that help organizations monitor, understand, and act on
threats in real-time. Remark consists of an international team of
sector-experienced professionals that have created video analytics.
The Company's GDPR-compliant and CCPA-compliant solutions focus on
market sectors including retail, federal and state governmental
entities, public safety, hospitality, and transportation. The
company's headquarters are in Las Vegas, Nevada, USA, with
operational offices in New York and international offices in
London, England.
Los Angeles, California-based Weinberg & Company, P.A., the
Company's auditor since 2020, issued a "going concern"
qualification in its report dated April 17, 2023, citing that the
Company has suffered recurring losses from operations and negative
cash flows from operating activities and has a negative working
capital and a stockholders' deficit that raise substantial doubt
about its ability to continue as a going concern.
RESIDENCES AT OVATION: Hilco Sets July 13 Qualified Bid Deadline
----------------------------------------------------------------
Hilco Real Estate, LLC on May 30, 2023, announced July 13, 2023, as
the qualified bid deadline for the bankruptcy sale of this
city-approved luxury condominium development in the fast-growing
city of Desert Hot Springs, Calif.
This development parcel, spanning 25± acres, is strategically
located in Desert Hot Springs, a city renowned for its natural
beauty, hot springs and growing tourism industry. The property is
accompanied by a city-approved development agreement, offering
unparalleled advantages for buyers. The agreement is valid until
2042, providing an extended timeline for construction and ensuring
stability for investors. This luxury condominium development has
plans for 402 total units and will be gated with an abundance of
high-end amenities on site, making it one of the first of its kind
in the area.
Set in the heart of Desert Hot Springs, this site offers stunning
views of the San Jacinto Mountains and easy access to the
surrounding retailers and tourism spots. The city has become an
attractive destination for individuals seeking a serene and
rejuvenating lifestyle. Its natural hot springs and
wellness-focused resorts have gained popularity among tourists,
with a few being featured in a recent New York Times article. The
city's proximity to Palm Springs and Joshua Tree National Park is
eight miles away, making it an ideal location for outdoor
enthusiasts, offering a multitude of recreational activities such
as hiking, golfing and exploration.
Desert Hot Springs' booming real estate market presents significant
growth potential for buyers. According to the U.S. Census Bureau,
it was reported that the population has grown 25.3% in the last 10
years. The city's popularity among tourists and retirees seeking a
tranquil lifestyle, as well as the increasing demand for oasis-like
destinations, positions this property as an ideal investment
opportunity.
Terry Rochford, senior vice president of business development at
Hilco Real Estate, stated, "With the city's approved development
agreement until 2042, it ensures a streamlined process, enabling
investors to move forward confidently with their plans. This
extended agreement period provides ample time for comprehensive
planning, construction, and the opportunity to establish a
profitable venture."
Jamie Coté, vice president at Hilco Real Estate, added, "Investors
won't want to miss out on this unique opportunity to acquire a
prime development parcel in Desert Hot Springs, where natural
beauty, wellness, and economic growth converge." He continued,
"With the city's population consistently increasing, this
multifamily development has great potential being one of the first
luxury condominiums to the area."
The sale is being conducted by Order of the U.S. Bankruptcy Court
Central District of California (Riverside), Bankruptcy Petition No.
6:23-bk-10602-RB, In re: The Residences at Ovation, LLC. Qualified
bids must be received on or before the deadline of July 13, 2023 at
5:00 p.m. (CT)and must be submitted on the Purchase and Sale
Agreement available for review and download from Hilco Real
Estate's website.
Interested buyers should review the bid procedures for requirements
in order to participate in the bankruptcy sale process available on
Hilco Real Estate's website. For further information, please
contact Jamie Coté at (847) 418-2187 or jcote@hilcoglobal.com and
Steve Madura at (847) 504-2478 or smadura@hilcoglobal.com
For further information on the property, sale process and terms or
to obtain access to due diligence documents, please visit
HilcoRealEstate.com or call (855) 755-2300.
About Hilco Real Estate
Hilco Real Estate ("HRE"), a Hilco Global company
(HilcoGlobal.com), is headquartered in Northbrook, Illinois (USA).
HRE is a national provider of strategic real estate disposition
services. Acting as an agent or principal, HRE uses its experience
to advise and execute strategies to assist clients in deriving the
maximum value from their real estate assets. By leveraging
multi-faceted sales strategies and techniques, aggressive
repositioning and restructuring experience, a vast and motivated
network of buyers and sellers, and substantial access to capital,
HRE exceeds expectations even in the most complex transactions.
About The Residences at Ovation
The Residences at Ovation LLC filed a petition for relief under
Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal.
Case No. 23-10602) on February 18, 2023. In the petition filed by
Cliff Sullivan, as managing member, the Debtor reported assets
between $10 million and $50 million and liabilities between $1
million and $10 million.
The Debtor is represented by:
Summer Shaw, Esq.
SHAW & HANOVER, PC
44-901 Village Court, Suite B
Palm Desert, CA 92260
Tel: (760) 610-0000
Fax: (760) 687-2800
Email: ss@shaw.law
RESOURCE TRAINING: Case Summary & Six Unsecured Creditors
---------------------------------------------------------
Debtor: The Resource Training Center Inc.
DBA Christopher's Reason
4521 Arthur Kill Road
Staten Island, NY 10309
Chapter 11 Petition Date: May 30, 2023
Court: United States Bankruptcy Court
Eastern District of New York
Case No.: 23-41896
Judge: Hon. Jil Mazer-Marino
Debtor's Counsel: Jacqulyn S. Loftin, Esq.
LAMONICA HERBST & MANISCALCO, LLP
3305 Jerusalem Avenue, Suite 201
Wantagh, NY 11793
Tel: 516-826-6500
Email: jsl@lhmlawfirm.com
Total Assets: $612,544
Total Liabilities: $2,777,912
The petition was signed by Ann Marie Perrotto as president and
chief executive officer.
A full-text copy of the petition containing, among other items, a
list of the Debtor's six unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/C2366VI/The_Resource_Training_Center_Inc__nyebke-23-41896__0001.0.pdf?mcid=tGE4TAMA
RETAILING ENTERPRISES: Case Summary & 20 Top Unsecured Creditors
----------------------------------------------------------------
Debtor: Retailing Enterprises, LLC
d/b/a Invicta
d/b/a Invicta Stores USA
d/b/a Techno Marine Store
d/b/a Invicta Store
405 SW 148th Ave
Suite 1
Davie FL 33325
Business Description: Retailing Enterprises LLC (d.b.a Invicta
Stores) is an official reseller of the
Invicta Watch Company of America. Invicta
Stores operates InvictaStores.com, and
numerous physical retail locations across
the United States, including the territory
of Puerto Rico.
Chapter 11 Petition Date: May 30, 2023
Court: United States Bankruptcy Court
Southern District of Florida
Case No.: 23-14169
Judge: Hon. Scott M. Grossman
Debtor's Counsel: Aaron A. Wernick, Esq.
WERNICK LAW, PLLC
2255 Glades Road Suite 324A
Boca Raton FL 33431
Tel: 561-961-0922
Email: awernick@wernicklaw.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $50 million to $100 million
The petition was signed by Mauricio Krantzberg as president.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/OSXHVNQ/Retailing_Enterprises_LLC__flsbke-23-14169__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Invicta Watch Company Suppliers or $29,531,244
of America, Inc Vendors
Attn: Aileen Drucker
3069 Taft St1 Invicta Way
Miami, FL, 33122
2. City National Bank Main Street $9,796,771
of Florida Loan Agreement
100 S.E. 2nd Street
13th Floor
Miami, FL, 33131
3. Simon Property Group Lease Agreements $3,849,019
225 West Washington Street
Indianapolis, IN, 46204-3438
4. 1535 Broadway LLC Lease $1,602,768
c/o Vornado Office Settlement
Management LLC Agreement
888 Seventh Ave Attn: Exec Vice Pres
New York, NY, 10019
5. ZWI Group LLC Merchandising $1,045,426
1532 South Washington Ave
Piscataway, NJ, 08854
6. Macerich Management Company Lease $452,000
Agent for Brooks Settlement
Shopping Centers, LLC Agreement
401 Wilshire Blvd., Ste 700
Santa Monica, CA, 90401
7. Aventura Mall Venture Lease $363,672
c/o Turnberry Aventura Agreements
Mall Co., LTD
19501 Biscayne Blvd, Ste 400
Miami, FL, 33180
8. BPR REIT Service, LLC Leases/ $328,564
350 N. Orleans St., Ste 300 Settlement
Attn: Gretchen Kaplan, Agreement
Sen Assoc. Gen Counsel
Chicago, IL, 60654
9. Akerman LLP Legal Services $205,046
420 South Orange Ave
Suite 1200
Orlando, FL, 32801
10. AddShoppers, Inc. Services $128,888
15806 Brookway Dr.
Suite 200
Huntersville, NC, 28078
11. Hilco Real Estate, LLC Services $66,258
5 Revere Drive
Suite 410
Northbrook, IL, 60062
12. Magna Marketing Settlement $42,000
147 Prince St. Agreement
Suite 2-31
Brooklyn, NY, 11201
13. Barton LLP Legal Services $27,360
711 Third Avenue
14th Floor
New York, NY, 10017
14. Tampa Westshore Lease $24,097
Associates Limited Agreement
Partnership
200 East Long Lake Road
PO Box 200
Bloomfield Hills, MI, 48303-0200
15. Accelerize 360 Inc Suppliers or $20,175
750 N. Saint Paul Street Vendors
Suite 1525
Dallas, TX, 75201
16. Carlton Fields Legal Services $19,429
2 Miami Central
700 NW 1st Ave. Ste 1200
Miami, FL, 33136-4118
17. PR Prince George's Lease $17,660
Plaza LLC Agreement
c/o PREIT Services, LLC
200 S. Broad St,
3rd Fl Attn Legal Director
Philadelphia, PA, 1910
18. FEDEX Corporation Shipping $13,691
942 South Shady Grove Rd. Services
Memphis, TN, 38120
19. Ask Nicely LLC Suppliers or $7,500
1615 SE 3rd Ave Vendors
3rd Floor
Portland, OR, 97214
20. Center for Leadership Suppliers or $5,202
Studies, Inc. Vendors
280 Towerview Court
Cary, NC, 27513
SCREAMWORKS LLC: Case Summary & 10 Unsecured Creditors
------------------------------------------------------
Debtor: Screamworks, LLC
35340 Scotland Heights Rd.
Round Hill, VA 20141
Business Description: Screamworks designs, builds, and operates
specialty events and fundraisers,
specializing in haunted attractions.
Chapter 11 Petition Date: May 30, 2023
Court: United States Bankruptcy Court
Eastern District of Virginia
Case No.: 23-10899
Debtor's Counsel: Maurice Verstandig, Esq.
THE BELMONT FIRM
1050 Connecticut NW
Suite 500
Washington, DC 20036
Tel: (202) 991-1101
Email: mac@mbvesq.com
Total Assets: $223,592
Total Liabilities: $1,101,562
The petition was signed by Jennifer Lassiter as managing member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 10 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/GGSP7WA/Screamworks_LLC__vaebke-23-10899__0001.0.pdf?mcid=tGE4TAMA
SILVERADO STREET: Unsecureds Will Get 12.3% via Bi-Annual Payments
------------------------------------------------------------------
Silverado Street, LLC, filed with the U.S. Bankruptcy Court for the
Southern District of California a Combined Plan of Reorganization
and Disclosure Statement dated May 22, 2023.
The Debtor has an ownership interest in Single Family Residence
located at 7724 Prospect Place, La Jolla, CA 92037 ("Prospect
Property") where Debtor's principal William J. Barkett and his
spouse Lisa Barkett reside.
The Prospect Property is currently valued at $9,995,000.00. On or
about May 1, 2023, Debtor obtained a Broker Price Opinion for the
Prospect Property from Berkshire Hathaway Home Services for
$9,995,000,00.
On May 10, 2023, William J. Barket and Lisa Barkett filed a
Declaration in Response to this Court's May 4, 22023 Tentative
Ruling. In the Declaration, Barketts had stated to the court that
they continuously resided in the Prospect Property since May 1994
and that the Prospect Property is their principal residence.
Barketts also indicated that they have been contributing
approximately $35,000.00 per month to the Debtor and have made the
$27,665.50 post-petition contractual payments for February, March,
April and May 2023 due to JPMorgan Chase Bank, N.A. who holds the
1st deed of trust against the Prospect Property. The Declaration
also states that Barketts have the financial ability to make the
contributions to the Debtor for the amount needed to fund Debtor's
Plan of Reorganization, including both the regular and cure
payments due to Chase, and the payments required to 2nd and 3rd
position lienholders for the Prospect Property.
Prior to the filing, Debtor attempted to resolve and dispute with
JPMorgan Chase Bank, N.A. to avoid foreclosure of the Prospect
Property. Being unable to reach an agreement, Debtor filed the
present bankruptcy case to stop JPMorgan Chase Bank's foreclosure
of the Prospect Property.
Debtor has two priority unsecured creditors: Internal Revenue
Service ("IRS") for $1,800.00 and Franchise Tax Board ("FTB") for
$6,000.00. Debtor proposes to pay the IRS $38.95 amortized payments
computed over 54 months at 7% interest rate and proposes to pay FTB
$118.92 amortized payments computed over 54 months at 3% interest
rate.
Debtor's Plan proposes to pay the general unsecured creditors
12.30% of their allowed claims to be paid bi-annually, with the
first payment due in month six from the effective date in the
amount of $76,117.80, followed by 9 bi-annual payments thereafter.
The allowed unsecured claims total $6,185,958.24.
A full-text copy of the Combined Plan and Disclosure Statement
dated May 22, 2023 is available at https://urlcurt.com/u?l=xrJjFK
from PacerMonitor.com at no charge.
Counsel for the Debtor:
Michael Jay Berger, Esq.
Law Offices of Michael Jay Berger
9454 Wilshire Blvd., 6th Floor
Beverly Hills, CA 90212-2929
Telephone: (310) 271-6223
Facsimile: (310) 271-9805
Email: michael.berger@bankruptcypower.com
About Silverado Street
Silverado Street, LLC owns a 9,000-square-foot single family
residence located at 7724 Prospect Place, La Jolla, Calif., valued
at $13 million. The Debtor is a tenant in common on an
approximately 1150-acre undeveloped property in Los Angeles County,
valued at $5 million.
Silverado Street filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Cal. Case No.
23-00108) on Jan. 20, 2023, with $18,000,000 in total assets and
$10,638,073 in total liabilities. William J. Barkett, managing
member, signed the petition.
Judge Margaret M. Mann oversees the case.
The Law Offices of Michael Jay Berger is the Debtor's counsel.
SIO2 MEDICAL: Committee Seeks to Hire White & Case as Counsel
-------------------------------------------------------------
The official committee of unsecured creditors appointed in the
Chapter 11 cases of SiO2 Medical Products, Inc. and its affiliates
seeks approval from the U.S. Bankruptcy Court for the District of
Delaware to employ White & Case, LLP as its counsel.
The firm will render these services:
(a) assist and advise the committee regarding its rights,
powers, and duties under the Bankruptcy Code and in connection with
these Chapter 11 cases;
(b) assist and advise the committee in its consultations and
negotiations with the Debtors concerning the administration of
these Chapter 11 cases;
(c) assist and advise the committee in its examination,
investigation, and analysis of the acts, conduct, assets,
liabilities, and financial condition of the Debtors;
(d) assist and advise the committee in the formulation,
review, analysis, and negotiation of any Chapter 11 plan(s) that
have been or may be filed and of the disclosure statement
accompanying any such Chapter 11 plan(s);
(e) take all necessary action to protect and preserve the
interests of the committee and creditors holding general unsecured
claims against the Debtors' estates;
(f) review and analyze motions, applications, orders,
statements of operations, and schedules filed with the court and
advise the committee as to their propriety;
(g) prepare all necessary legal papers;
(h) represent the committee at all court hearings, statutory
meetings of creditors, and other proceedings before this court;
(i) assist and advise the committee in the review, analysis,
and negotiation of any financing agreements;
(j) assist and advise the committee as to its communications
with its constituents regarding significant matters in these
Chapter 11 cases; and
(k) perform such other legal services.
The hourly rates of the firm's counsel and staff are as follows:
Partners $1,370 - $2,100
Counsel $1,310
Associates $740 - $1,270
Paraprofessionals $215 - $640
In addition, the firm will be reimbursed for out-of-pocket expenses
incurred.
Andrew O'Neill, Esq., a partner at White & Case, disclosed in a
court filing that his firm is a "disinterested person" within the
meaning of Section 101(14) of the Bankruptcy Code.
Mr. O'Neill also disclosed the following pursuant to Paragraph D.1
of the U.S. Trustee Guidelines:
Question: Did you agree to any variations from, or
alternatives to, your standard or customary billing arrangements
for this engagement?
Answer: No.
Question: Do any of the professionals included in this
engagement vary their rate based on the geographic location of the
bankruptcy case?
Answer: No.
Question: If you represented the client in the twelve (12)
months prepetition, disclose your billing rates and material
financial terms for the prepetition engagement, including any
adjustments during the twelve (12) months prepetition. If your
billing rates and material financial terms have changed
postpetition, explain the difference and the reasons for the
difference.
Answer: White & Case did not represent the committee
prepetition.
Question: Has your client approved your prospective budget and
staffing plan, and, if so, for what budget period?
Answer: The committee has approved a framework for White &
Case's staffing for the initial stage of these Chapter 11 cases. In
light of the unique nature of these proceedings and the various
stakeholders involved, White & Case and the committee are
finalizing a staffing and budget plan for the remainder of these
Chapter 11 cases. In light of a number of unforeseeable events that
may arise in large Chapter 11 cases, the committee and White & Case
may need to refine or amend any budget or staffing plan, as
necessary. Any budget or staffing plan is intended as an estimate
and not as caps or limitations on fees or expenses that may be
incurred or on the professionals or paraprofessionals who may
advise the committee in these Chapter 11 cases. In accordance with
the U.S. Trustee Guidelines, the budget may be approved or amended
as necessary to reflect changed or unanticipated developments.
White & Case can be reached through:
Andrew F. O'Neill, Esq.
White & Case LLP
111 South Wacker Drive, Suite 5100
Chicago, IL 60606
Telephone: (312) 881-5400
Facsimile: (312) 881-5450
Email: aoneill@whitecase.com
About SiO2 Medical Products
SiO2 Medical Products, Inc. is a material life sciences company
that is at the precipice of mass-commercialization of its
breakthrough materials science technology that is poised to
revolutionize the pharmaceutical industry. Major pharmaceutical
players are testing the company's vials, syringes, tubes, and other
offerings, and the Company anticipates large-scale adoption in the
relative near term.
SiO2 Medical Products and its affiliates sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case
No. 23-10366) on March 29, 2023. In the petition signed by its
chief executive officer, Yves Steffen, SiO2 Medical Products
disclosed $100 million to $500 million in assets and $500 million
to $1 billion in liabilities.
Judge John T. Dorsey oversees the cases.
The Debtors tapped Kirkland Ellis, LLP and Kirkland & Ellis
International, LLP as general bankruptcy counsels; Cole Schotz P.C.
as local bankruptcy counsel; Alvarez & Marshal North America, LLC
as financial and restructuring advisor; and Lazard as investment
banker. Donlin, Recano and Co., Inc. is the claims, noticing,
solicitation and administrative agent.
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases. The
committee tapped White & Case, LLP as bankruptcy counsel; Potter
Anderson & Corroon, LLP as local counsel; and Province, LLC as
financial advisor.
SIO2 MEDICAL: Committee Seeks to Tap Province as Financial Advisor
------------------------------------------------------------------
The official committee of unsecured creditors appointed in the
Chapter 11 cases of SiO2 Medical Products, Inc. and its affiliates
seeks approval from the U.S. Bankruptcy Court for the District of
Delaware to employ Province, LLC as financial advisor.
The committee requires a financial advisor to:
(a) analyze the Debtors' financial condition;
(b) review financial and operational information furnished by
the Debtors;
(c) monitor the sale process, review bidding procedures, stalk
horse bids, asset purchase agreements, interface with the Debtors'
professionals, and advise the committee regarding the process;
(d) scrutinize the economic terms of various agreements;
(e) analyze the Debtors' proposed business plans and develop
alternative scenarios, if necessary;
(f) assess the Debtors' various pleadings and proposed
treatment of unsecured creditor claims therefrom;
(g) prepare, or review as applicable, avoidance action and
claim analyses;
(h) assist the committee in reviewing the Debtors' financial
reports;
(i) advise the committee on the current state of these Chapter
11 cases;
(j) advise the committee in negotiations with the Debtors and
third parties as necessary;
(k) if necessary, participate as a witness in hearings before
the court with respect to matters upon which Province has provided
advice; and
(l) perform other activities as are approved by the committee,
its counsel, and as agreed to by Province.
The hourly rates of Province's professionals are as follows:
Managing Directors and Principals $860 - $1,350
Vice Presidents, Directors, and Senior Directors $580 - $950
Analysts, Associates, and Senior Associates $300 - $650
Paraprofessionals $220 - $300
In addition, Province will seek reimbursement for expenses
incurred.
Sanjuro Kietlinski, a principal at Province, 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:
Sanjuro Kietlinski
Province, LLC
2360 Corporate Circle, Suite 340
Henderson, NV 89074
Telephone: (702) 685-5555
Email: skietlinski@provincefirm.com
About SiO2 Medical Products
SiO2 Medical Products, Inc. is a material life sciences company
that is at the precipice of mass-commercialization of its
breakthrough materials science technology that is poised to
revolutionize the pharmaceutical industry. Major pharmaceutical
players are testing the company's vials, syringes, tubes, and other
offerings, and the Company anticipates large-scale adoption in the
relative near term.
SiO2 Medical Products and its affiliates sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case
No. 23-10366) on March 29, 2023. In the petition signed by its
chief executive officer, Yves Steffen, SiO2 Medical Products
disclosed $100 million to $500 million in assets and $500 million
to $1 billion in liabilities.
Judge John T. Dorsey oversees the cases.
The Debtors tapped Kirkland Ellis, LLP and Kirkland & Ellis
International, LLP as general bankruptcy counsels; Cole Schotz P.C.
as local bankruptcy counsel; Alvarez & Marshal North America, LLC
as financial and restructuring advisor; and Lazard as investment
banker. Donlin, Recano and Co., Inc. is the claims, noticing,
solicitation and administrative agent.
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases. The
committee tapped White & Case, LLP as bankruptcy counsel; Potter
Anderson & Corroon, LLP as local counsel; and Province, LLC as
financial advisor.
SIO2 MEDICAL: Committee Taps Potter Anderson & Corroon as Counsel
-----------------------------------------------------------------
The official committee of unsecured creditors appointed in the
Chapter 11 cases of SiO2 Medical Products, Inc. and its affiliates
seeks approval from the U.S. Bankruptcy Court for the District of
Delaware to employ Potter Anderson & Corroon LLP as its local
counsel.
The firm will render these services:
(a) advise regarding local rules, practices, and procedures
and provide substantive and strategic advice on how to accomplish
committee goals;
(b) draft, review, and comment on drafts of documents to
ensure compliance with local rules, practices, and procedures;
(c) draft, file, and serve documents as requested by White &
Case;
(d) prepare certificates of no objection, certifications of
counsel, and notices of fee applications;
(e) print documents and pleadings for hearings, prepare
binders of documents and pleadings for hearings;
(f) appear in court and at any meetings of creditors on behalf
of the committee in its capacity as Delaware counsel with White &
Case;
(g) monitor the docket for filings and coordinate with White &
Case on pending matters that may need responses;
(h) participate in calls with the committee;
(i) provide additional administrative support to White & Case,
as requested; and
(j) perform such other legal services.
The hourly rates of the firm's counsel and staff are as follows:
Partners $675 - $865
Associates $440 - $575
Paraprofessionals $330 - $350
In addition, the firm will seek reimbursement for expenses
incurred.
The firm provided the following in response to the request for
additional information set forth in Section D of the Revised U.S.
Trustee Guidelines:
Question: Did you agree to any variations from, or alternatives
to, your standard or customary billing arrangements for this
engagement?
Answer: No.
Question: Do any of the professionals included in this engagement
vary their rate based on the geographic location of the bankruptcy
case?
Answer: No.
Question: If you represented the client in the twelve months
prepetition, disclose your billing rates and material financial
terms for the prepetition engagement, including any adjustments
during the twelve months prepetition. If your billing rates and
material financial terms have changed post-petition, explain the
difference and reasons for the difference.
Answer: Potter Anderson did not represent the committee in the 12
months prepetition. Potter Anderson may represent in the future
certain committee members and/or their affiliates in their
capacities as members of official committees in other Chapter 11
cases or individually in matters wholly unrelated to these Chapter
11 cases.
Question: Has your client approved your respective budget and
staffing plan, and if so, for what budget period?
Answer: Potter Anderson expects to develop a budget and staffing
plan to reasonably comply with the U.S. Trustee's request for
information and additional disclosures, as to which Potter Anderson
reserves all rights. The committee has approved Potter Anderson's
proposed hourly billing rates.
Christopher Samis, Esq., a member of Potter Anderson & Corroon,
disclosed in a court filing that his firm is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Christopher M. Samis, Esq.
Potter Anderson & Corroon LLP
1313 North Market Street, 6th Floor
Wilmington, DE 19801
Telephone: (302) 984-6000
Facsimile: (302) 658-1192
Email: csamis@potteranderson.com
About SiO2 Medical Products
SiO2 Medical Products, Inc. is a material life sciences company
that is at the precipice of mass-commercialization of its
breakthrough materials science technology that is poised to
revolutionize the pharmaceutical industry. Major pharmaceutical
players are testing the company's vials, syringes, tubes, and other
offerings, and the Company anticipates large-scale adoption in the
relative near term.
SiO2 Medical Products and its affiliates sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case
No. 23-10366) on March 29, 2023. In the petition signed by its
chief executive officer, Yves Steffen, SiO2 Medical Products
disclosed $100 million to $500 million in assets and $500 million
to $1 billion in liabilities.
Judge John T. Dorsey oversees the cases.
The Debtors tapped Kirkland Ellis, LLP and Kirkland & Ellis
International, LLP as general bankruptcy counsels; Cole Schotz P.C.
as local bankruptcy counsel; Alvarez & Marshal North America, LLC
as financial and restructuring advisor; and Lazard as investment
banker. Donlin, Recano and Co., Inc. is the claims, noticing,
solicitation and administrative agent.
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases. The
committee tapped White & Case, LLP as bankruptcy counsel; Potter
Anderson & Corroon, LLP as local counsel; and Province, LLC as
financial advisor.
SOUTH TOWN: Seeks to Hire Michael D. Collins as Bankruptcy Counsel
------------------------------------------------------------------
South Town Holdings, LLC seeks approval from the U.S. Bankruptcy
Court for the Western District of Arkansas to employ Michael D.
Collins, PA to handle its Chapter 11 case.
The hourly rates of the firm's counsel and staff are as follows:
Michael D. Collins $255
Staff $50
Mr. Collins disclosed in a court filing that he is a "disinterested
person" as defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Michael D. Collins, Esq.
Michael D. Collins PA
4300 Rogers Ave., Suite 45
Fort Smith, AZ 72903
Telephone: (479) 783-8291
Facsimile: (479) 595-0151
Email: michael@collinspa.com
About South Town Holdings
South Town Holdings, LLC filed a Chapter 11 bankruptcy petition
(Bankr. W.D. Ark. Case No. 23-70208) on Feb. 17, 2023, with as much
as $1 million in both assets and liabilities. Judge Bianca M.
Rucker oversees the case.
Michael D. Collins, Esq., at Michael D. Collins PA serves as the
Debtor's counsel.
SOUTHERN HOSPITALITY: Gets Interim Approval to Tap an Accountant
----------------------------------------------------------------
Southern Hospitality Event Rentals, LLC received interim approval
from the U.S. Bankruptcy Court for the Eastern District of
Louisiana to employ Patrick Gros CPA, APAC.
The Debtor requires an accountant to:
(a) prepare monthly operating reports;
(b) prepare exhibits and other financial analysis for the
Debtor's proposed Chapter 11 plan; and
(c) prepare other financial documents and provide testimony
necessary to confirm the plan or as otherwise needed in the
Debtor's Chapter 11 case.
The hourly rates of the firm's professionals are as follows:
Patrick Gros, CPA $250
Manager $175
Seniors $140
Staff $95
The Debtor paid the accountant a retainer in the amount of $3,000.
Mr. Gros 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:
Patrick Gros, CPA
Patrick Gros CPA, APAC
651 River Highlands Blvd.
Covington, LA 70433
Telephone: (985) 898-3512
Email: info@PJGrosCPA.com
About Southern Hospitality Event Rentals
Southern Hospitality Event Rentals, LLC is an event rentals company
in Abita Springs, La.
Southern Hospitality Event Rentals filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. La.
Case No. 23-10597) on April 20, 2023, with $434,411 in assets and
$1,777,088 in liabilities. Robert N. Verdi, managing member, signed
the petition.
Judge Meredith S. Grabill presides over the case.
The Debtor tapped Robin R. De Leo, Esq., at The De Leo Law Firm,
LLC as counsel and Patrick Gros CPA, APAC as accountant.
SPI ENERGY: Incurs $9.8 Million Net Loss in First Quarter
---------------------------------------------------------
SPI Energy Co., Ltd. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $9.75 million on $47.92 million of net revenues for the three
months ended March 31, 2023, compared to a net loss of $6.78
million on $38.53 million of net revenues for the three months
ended March 31, 2022.
As of March 31, 2023, the Company had $230.29 million in total
assets, $219.79 million in total liabilities, and $10.50 million in
total equity.
The Group had recurring losses from operations. The Group has
incurred a net loss during the three months ended March 31, 2023,
and the cash flow used in operating activities was $4,873,000. As
of March 31, 2023, there is net working capital deficit of
$115,436,000 and accumulated deficit of $680,219,000.
SPI said, "These factors raise substantial doubt as to the Group's
ability to continue as a going concern. The Group intends to
continue implementing various measures to boost revenue and control
the cost and expenses within an acceptable level and other measures
including: 1) negotiate with potential buyers on PV solar projects;
2) negotiate for postponing of convertible bond payments; 3)
improve the profitability of the business in US; 4) strictly
control and reduce business, marketing and advertising expenses; 5)
obtain equity financing from certain subsidiaries' initial public
offerings; and 6) seek for certain credit facilities. There is no
assurance that the group will be successful in meeting its
liquidity and cash flow requirements."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1210618/000168316823003575/spi_i10q-033123.htm
About SPI Energy Co.
SPI Energy Co., Ltd. is a global renewable energy company and
provider of solar storage and EV solutions that was founded in
2006
in Roseville, California and is now headquartered in McClellan
Park, California.
SPI Energy reported a net loss of $33.72 million for the year ended
Dec. 31, 2022, compared to a net loss of $44.83 million for the
year ended Dec. 31, 2021. As of Dec. 31, 2022, the Company had
$231.09 million in total assets, $213.22 million in total
liabilities, and $17.87 million in total equity.
New York, New York-based Marcum Asia CPAs LLP, the Company's
auditor since 2019, issued a "going concern" qualification in its
report dated April 14, 2023, citing that the Company has a
significant working capital deficit, has incurred significant
losses and needs to raise additional funds to sustain its
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
STEM HOLDINGS: Incurs $3.2 Million Net Loss in Second Quarter
-------------------------------------------------------------
Stem Holdings, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $3.23 million on $3.89 million of revenues for the three months
ended March 31, 2023, compared to a net loss of $3.46 million on
$4.14 million of revenues for the three months ended March 31,
2022.
For the six months ended March 31, 2023, the Company reported a net
loss of $6.31 million on $7.95 million of revenues compared to a
net loss of $7.65 million on $8.35 million of revenues for the same
period during the prior year.
As of March 31, 2023, the Company had $26.21 million in total
assets, $14.57 million in total liabilities, and $11.64 million in
total shareholders' equity.
Stem Holdings said, "Management believes that the Company has
access to capital resources through potential public or private
issuances of debt or equity securities. However, if the Company is
unable to raise additional capital, it may be required to curtail
operations and take additional measures to reduce costs, including
reducing its workforce, eliminating outside consultants, and
reducing legal fees to conserve its cash in amounts sufficient to
sustain operations and meet its obligations. The Company is also
in the process of seeking business combinations by entities
directly in the production and sale of cannabis. These matters
raise substantial doubt about the Company's ability to continue as
a going concern."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1697834/000149315223018493/form10-q.htm
About Stem Holdings
Headquartered in Boca Raton, Florida, Stem Holdings, Inc. --
http://www.stemholdings.com-- is a multi-state, vertically
integrated, cannabis company that, through its subsidiaries and its
investments, is engaged in the manufacture, possession, use, sale,
distribution or branding of cannabis, and holds licenses in the
adult use and medical cannabis marketplace in the states of Oregon,
Nevada, California, Oklahoma and Massachusetts.
Stem Holdings reported a net loss of $17.53 million for the year
ended Sept. 30, 2022, a net loss of $64.6 million for the year
ended Sept. 30, 2021, and a net loss of $11.5 million for the year
ended Sept. 30, 2020.
Deer Park, IL-based LJ Soldinger Associates, LLC, the Company's
auditor since 2017, issued a "going concern" qualification in its
report dated Jan. 13, 2023, citing that the Company had a net loss
of approximately $17.5 million, negative working capital of $0.8
million and an accumulated deficit of $133.1 million as of and for
the year ended Sept. 30, 2022. In addition, the Company has
commenced operations in the production and sale of cannabis and
related products, an activity that is illegal under United States
Federal law for any purpose, by way of Title II of the
Comprehensive Drug Abuse Prevention and Control Act of 1970,
otherwise known as the Controlled Substances Act of 1970 (the
"ACT"). These facts raise substantial doubt as to the Company's
ability to continue as a going concern. The financial statements do
not include any adjustments that might result from the outcome of
this uncertainty.
STEVE'S LAWNMOWER: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Steve's Lawnmower Sales & Service, LLC
938 S. St. Marys St.
Saint Marys PA 15857
Business Description: The Debtor owns a lawn mower store in St.
Marys, Pennsylvania.
Chapter 11 Petition Date: May 26, 2023
Court: United States Bankruptcy Court
Western District of Pennsylvania
Case No.: 23-10282
Debtor's Counsel: David Fuchs, Esq.
FUCHS LAW OFFICE, LLC
554 Washington Avenue
Carnegie PA 15106
Tel: 412-223-5404
Email: dfuchs@fuchslawoffice.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Steve Chicola as managing member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/MJPPGLA/Steves_Lawnmower_Sales__Service__pawbke-23-10282__0001.0.pdf?mcid=tGE4TAMA
SUNRISE REAL: Incurs $1.9 Million Net Loss in First Quarter
-----------------------------------------------------------
Sunrise Real Estate Group, Inc. filed with the Securities and
Exchange Commission its Quarterly Report on Form 10-Q disclosing
a net loss of $1.89 million on $5.73 million of net revenues for
the three months ended March 31, 2023, compared to a net loss of
$3.44 million on $10.82 million of net revenues for the three
months ended March 31, 2022.
As of March 31, 2023, the Company had $281.88 million in total
assets, $137.12 million in total liabilities, and $144.76 million
in total shareholders' equity.
The Company ended the period with a cash position of $33,536,791.
The Company's operating activities provided cash in the amount of
$2,660,805, which was primarily attributable to the receipts in
advance and account payable from its property development
projects.
The Company's investing activities provided cash resources of
$2,672,598, which was primarily attributable to the withdrawal of
transactional financial assets.
The Company's financing activities used cash resources of
$3,859,604, which was primarily attributable to restricted cash.
The Company said the potential cash needs for 2023 would include
the investment of transactional financial assets, the rental
guarantee payments and promissory deposits for various property
projects as well as its development of the Linyi project and the
HATX project.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1083490/000141057823001329/srre-20230331x10q.htm
About Sunrise Real
The principal activities of Sunrise Real Estate Group, Inc. and its
subsidiaries offer real estate development and property brokerage
services, including real estate marketing services, property
leasing services; and property management services in the People's
Republic of China.
Sunrise Real Estate Group reported a net loss of $9.39 million for
the year ended Dec. 31, 2022, compared to net income of $46.28
million for the year ended Dec. 31, 2021. As of Dec. 31, 2022, the
Company had $274.09 million in total assets, $129.35 million in
total iabilities, and $144.74 million in total stockholders'
equity.
* * *
This concludes the Troubled Company Reporter's coverage of Sunrise
Real Estate Group until facts and circumstances, if any, emerge
that demonstrate financial or operational strain or difficulty at a
level sufficient to warrant renewed coverage.
TREES CORP: Incurs $1.9 Million Net Loss in First Quarter
---------------------------------------------------------
Trees Corporation filed with the Securities and Exchange Commission
its Quarterly Report on Form 10-Q disclosing a net loss of $1.89
million on $5.11 million of total revenue for the three months
ended March 31, 2023, compared to a net loss of $861,056 on $3.57
million of total revenue for the three months ended March 31,
2022.
As of March 31, 2023, the Company had $31.43 million in total
assets, $26.90 million in total liabilities, and $4.53 million in
total stockholders' equity.
Trees Corp stated, "We have incurred recurring losses and negative
cash flows from operations since inception and have primarily
funded our operations with proceeds from the issuance of
convertible debt. We expect our operating losses to continue into
the foreseeable future as we continue to execute our acquisition
and growth strategy. As a result, we have concluded that there is
substantial doubt about our ability to continue as a going concern.
Our unaudited condensed consolidated financial statements do not
include any adjustments that might result from the outcome of this
uncertainty.
"Our ability to continue as a going concern is dependent upon our
ability to raise additional capital to fund operations, support our
planned investing activities, and repay our debt obligations as
they become due. If we are unable to obtain additional funding, we
would be forced to delay, reduce, or eliminate some or all of our
acquisition efforts, which could adversely affect our growth
plans."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1477009/000155837023010306/cann-20230331x10q.htm
About Trees Corp
Headquartered in Denver, Colorado, Trees Corporation (formerly
known as General Cannabis Corp) -- is a cannabis retailer and
cultivator in the States of Colorado and Oregon.
Trees Corp reported a net loss of $9.47 million for the year ended
Dec. 31, 2022, compared to a net loss of $8.87 million for the year
ended Dec. 31, 2021. As of Dec. 31, 2022, the Company had $31.69
million in total assets, $25.29 million in total liabilities, and a
total stockholders' equity of $6.41 million.
Salt Lake City, Utah-based Haynie & Company, the Company's auditor
since 2021, issued a "going concern" qualification in its report
dated April 17, 2023, citing that the Company has suffered
recurring losses from operations and has a negative working capital
that raise substantial doubt about its ability to continue as a
going concern.
VIRGIN ORBIT: Assets Bought by Stratolaunch, Rocket Lab US
----------------------------------------------------------
Loren Grush of Bloomberg Law reports that Stratolaunch LLC and
Rocket Lab USA Inc. are among the buyers for assets of Virgin Orbit
Holdings Inc., the bankrupt space-launch company tied to
billionaire Richard Branson.
Virgin Orbit will sell its modified Boeing 747, known as Cosmic
Girl, to Stratolaunch for $17 million after no better bids emerged,
according to bankruptcy court papers filed Tuesday, May 23, 2023.
Meanwhile, Rocket Lab is buying Virgin Orbit's primary rocket
factory in California for $16.1 million.
The piecemeal sale indicates no adequate bids emerged for the whole
of Virgin Orbit during an auction.
According to Bloomberg, Virgin Orbit moved closer to selling a
specialized 747 airplane and a California rocket factory to a pair
of companies for more than $30 million after a bankruptcy judge
indicated she would approve the sale.
Virgin Orbit on Tuesday, May 23, 2023, said it would sell its
assets and shut down.
About Virgin Orbit
Virgin Orbit Holdings, Inc (OTCMKTS: VORBQ) --
http://www.virginorbit.com/-- operates one of the most flexible
and responsive space launch systems ever built. Founded by Sir
Richard Branson in 2017, the Company began commercial service in
2021, and has already delivered commercial, civil, national
security, and international satellites into orbit. Virgin Orbit's
LauncherOne rockets are designed and manufactured in Long Beach,
California, and are air-launched from a modified 747-400 carrier
aircraft that allows Virgin Orbit Holdings, Inc., to operate from
locations all over the world in order to best serve each customer's
needs.
Virgin Orbit Holdings, Inc., and its affiliates sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case
No. 23-10405) on April 4, 2023.
In the petition filed by Daniel M. Hart, as chief executive
officer, Virgin Orbit reported total assets of $242,978,000 and
total debt of $153,491,000 as of Sept. 30, 2022.
The Debtors tapped YOUNG CONAWAY STARGATT & TAYLOR, LLP, and LATHAM
& WATKINS LLP as counsel; DUCERA PARTNERS LLC as investment banker
and financial advisor; and ALVAREZ & MARSAL NORTH AMERICA LLC as
restructuring advisor. KROLL RESTRUCTURING ADMINISTRATION LLC is
the claims agent.
The Debtors' indirect parent entity, Virgin Investments Limited, in
its role as Lender and Administrative Agent and Collateral Agent,
has retained Davis Polk & Wardwell LLP, FTI Consulting, Inc., and
Morris, Nichols, Arsht & Tunnell LLP as advisors.
VITAL PHARMACEUTICALS: Former CEO Jeopardizes Chapter 11 Sale
-------------------------------------------------------------
David Minsky of Law360 reports that Bang Energy drink maker Vital
Pharmaceuticals on Thursday urged a Florida federal bankruptcy
judge to prevent its former CEO from using social media accounts
tied to the company, saying his postings are jeopardizing a
potential sale of the company's assets in its Chapter 11 case.
About Vital Pharmaceuticals
Since 1993, Florida-based Vital Pharmaceuticals, Inc., doing
business as Bang Energy and as VPX Sports, has developed
performance beverages, supplements, and workout products to fuel
high-energy lifestyles. VPX Sports is the maker of Bang energy
drinks, among other consumer products.
Vital Pharmaceuticals, Inc., along with certain of its domestic
subsidiaries and affiliates, filed voluntary petitions for
protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D.
Fla. Lead Case No. 22-17842) on Oct. 10, 2022.
VPX estimated $500 million to $1 billion in assets and liabilities
as of the bankruptcy filing.
The Hon. Scott M. Grossman is the case judge.
The Debtors tapped Latham & Watkins, LLP as general bankruptcy
counsel; Berger Singerman, LLP as local counsel; Haynes and Boone,
LLP and Faulkner ADR Law, PLLC as special counsels; Huron
Consulting Group, Inc., as CTO services provider; and Rothschild &
Co US, Inc., as investment banker. Stretto, Inc., is the notice,
claims and solicitation agent.
The U.S. Trustee for Region 21 appointed an official committee of
unsecured creditors on Nov. 1, 2022. The committee tapped
Lowenstein Sandler, LLP as general bankruptcy counsel; Sequor Law,
P.A. as local counsel; and Lincoln Partners Advisors, LLC as
financial advisor.
VOIP-PAL.COM INC: Posts $776K Net Loss in Second Quarter
--------------------------------------------------------
VoIP-PAL.COM Inc. filed with the Securities and Exchange Commission
its Quarterly Report on Form 10-Q disclosing a loss and
comprehensive loss of $776,336 for the three months ended March 31,
2023, compared to a loss and comprehensive loss of $461,733 for the
three months ended March 31, 2022.
For the six months ended March 31, 2023, the Company reported a
loss and comprehensive loss of $1.39 million compared to a loss and
comprehensive loss of $763,273 for the same period in 2022.
As of March 31, 2023, the Company had $1.48 million in total
assets, $278,116 in total liabilities, and $1.21 million in
stockholders' equity.
VOIP-PAL.com said, "The Company is in various stages of product
development and continues to incur losses and, at March 31, 2023,
had an accumulated deficit of $71,468,498 (September 30, 2022 -
$70,076,579). The ability of the Company to continue operations as
a going concern is dependent upon raising additional working
capital, settling outstanding debts and generating profitable
operations. These material uncertainties raise substantial doubt
about the Company's ability to continue as a going concern. Should
the going concern assumption not continue to be appropriate,
further adjustments to carrying values of assets and liabilities
may be required. There can be no assurance that capital will be
available as necessary to meet these continued developments and
operating costs or, if the capital is available, that it will be on
the terms acceptable to the Company. The issuances of additional
stock by the Company may result in a significant dilution in the
equity interests of its current shareholders. Obtaining commercial
loans, assuming those loans would be available, will increase the
Company's liabilities and future cash commitments. If the Company
is unable to obtain financing in the amounts and on terms deemed
acceptable, its business and future success may be adversely
affected."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/0001410738/000149315223017071/form10-q.htm
About VOIP-PAL.com
Since March 2004, VOIP-PAL.com has developed technology and patents
related to Voice-over-Internet Protocol (VoIP) processes. All
business activities prior to March 2004 have been abandoned and
written off to deficit. The Company operates in one reportable
segment being the acquisition and development of VoIP-related
intellectual property including patents and technology.
Vancouver, Canada-based Davidson & Company LLP, the Company's
auditor since 2015, issued a "going concern" qualification in its
report dated Dec. 23, 2022, citing that the Company has suffered
recurring losses from operations and has a net capital deficiency
that raise substantial doubt about its ability to continue as a
going concern.
VOYAGER DIGITAL: Investor Attorneys Fight Cuban's Sanctions Bid
---------------------------------------------------------------
Emilie Ruscoe of Law360 reports that investors in now-bankrupt
Voyager Digital Ltd. have accused Dallas Mavericks owner Mark Cuban
of initiating a "sideshow" with a recent sanctions bid in a suit
alleging he should make Voyager investors whole after allegedly
promoting the platform's unregistered securities before it filed
for bankruptcy.
About Voyager Digital Holdings
Based in Toronto, Canada, Voyager Digital Holdings Inc. --
https://www.investvoyager.com/ -- runs a cryptocurrency platform.
Voyager claims to offer a secure way to trade over 100 different
crypto assets using its easy-to-use mobile application. Through
its subsidiary Coinify ApS, Voyager provides crypto payment
solutions for both consumers and merchants around the globe.
Voyager Digital Holdings Inc. and two affiliates sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead
Case No. 22-10943) on July 5, 2022. In the petition filed by
Stephen Ehrlich, chief executive officer, the Debtors estimated
assets and liabilities between $1 billion and $10 billion.
Judge Michael E. Wiles oversees the cases.
The Debtors tapped Kirkland & Ellis, LLP as general bankruptcy
counsel; Berkeley Research Group, LLC as financial advisor; Moelis
& Company as investment banker; Consello Group as strategic
financial advisor; Deloitte Tax, LLP as tax services provider; and
Deloitte & Touche, LLP as accounting advisor. Stretto, Inc., is
the claims agent.
On July 19, 2022, the U.S. Trustee for Region 2 appointed an
official committee of unsecured creditors in the Chapter 11 cases.
The committee tapped McDermott Will & Emery, LLP as bankruptcy
counsel; FTI Consulting, Inc. as financial advisor; Cassels Brock &
Blackwell, LLP as Canadian counsel; and Epiq Corporate
Restructuring, LLC as noticing and information agent.
The committee also tapped the services of Harney Westwood &
Riegels, LP, in connection with Three Arrows Capital Ltd.'s
liquidation proceedings in British Virgin Islands.
On July 6, 2022, the Debtors filed a joint Chapter 11 plan of
reorganization.
* * *
Following an auction process, the Debtors in September 2022
selected the bid submitted by FTX US' West Realm Shires Inc. as the
winning bid for the assets. But after a series of events, FTX
collapsed in November 2022, before the sale could be completed.
After reopening bidding, Voyager Digital selected the offer from
U.S. exchange BAM Trading Services Inc. (doing business as
"Binance.US") as the highest and best bid for its assets. Binance's
bid is valued at $1.022 billion.
In April 2023, Binance.US called off its deal to buy assets of
bankrupt crypto lender Voyager Digital, citing a "hostile and
uncertain regulatory climate."
WELCH & WELCH PLANTING: Enters Chapter 11 Bankruptcy Protection
---------------------------------------------------------------
Welch & Welch Planting Company LLC filed for chapter 11 protection
in the Western District of Tennessee.
The Debtor is involved in the farming business. The Debtor manages
its operations from 1076 Lennox Nauvoo Rd, Dyersburg, TN 38024,
where it maintains its principal executive offices.
The Debtor immediately filed a motion for authority (a) to enter
into loan agreements with Agrifund, LLC and distributor CCC &
Chemicals; (b) grant Lender a first position security interest with
priority over any all-administrative expenses of the kind specified
in 11 U.S.C. Sec. 503(b) or 507(b) pursuant to 11 U.S.C. Sec.
364(c)(1), in all 2023 and future crops and related proceeds,
including crop insurance indemnities and Farm Service Agency
program payments; (c) modify the automatic stay to the extent
necessary to allow Lender to collect collateral proceeds payments
from its pre-petition 2023 winter wheat loan.
In the ordinary course of business, the Debtor must obtain an
annual crop loan to continue its operations. The Debtor has been
unable to incur unsecured credit in the ordinary course of business
pursuant to 11 U.S.C. Sec. 364(b).
The Debtor currently has an operating loan with ARM for the
production of 2023 winter wheat (planted in fall 2022) (the "2023
Wheat Loan").
The Debtor has engaged in discussions with various companies in the
business of providing crop loans and financing and has determined
that Lender offers the most advantageous terms for such financing.
The borrowed funds will be used for 2023 farm operating expenses.
Lender will only agree to extend the credit to the Debtors
conditioned upon Lender obtaining first1 and prior liens against
all of Debtors' growing and harvested crops, crop insurance, and
all USDA Farm Service Agency ("FSA") farm program payments, and an
order from the Bankruptcy Court authorizing the Debtors to obtain
the loan and subordinating any existing crops liens to Lender's
security interest.
About Welch & Welch Planting
Based in Dyersburg, Tennessee, Welch & Welch Planting Company LLC
is involved in the farming business.
Welch & Welch Planting Company filed a petition for relief under
Chapter 11 of the Bankruptcy Code on Sept. 22, 2022.
In the petition filed by Joe Welch, as president, the Debtor
reported assets and liabilities between $1 million and $10 million.
The petition states that funds will be available to unsecured
creditors.
The Debtor is represented by:
T. Verner Smith, Esq.
Law Office of Verner Smith
1076 Lennox Nauvoo Rd
Dyersburg, TN 38024
WHITETAIL GENERAL: Has Deal on Cash Collateral Access
-----------------------------------------------------
Whitetail General Constructors LLC and Brave National Bank advised
the U.S. Bankruptcy Court for the District of Montana that they
have reached an agreement regarding the Debtor's use of cash
collateral and now desire to memorialize the terms of this
agreement into an agreed order.
The Debtor intends to use the cash collateral to continue
operations of the business within the ordinary course and for
purposes of reorganization.
The Debtor entered into a Promissory Note and Commercial Security
Agreement with Brave National Bank on February 19, 2020. The
Secured Loan granted Brave a perfected, first-priority UCC lien on
any and all accounts receivables and equipment of the Debtor. The
Secured Loan and supporting documentation were submitted as
exhibits to Brave's Proof of Claim on file.
Brave's Proof of Claim #9 asserts $274,492 owed as of the petition
date .
As of the petition date, the Debtor had on deposit $89,640 and
$975,399 in estimated accounts receivables. The parties agree these
funds are subject to the Secured Loan and would be considered "Cash
Collateral" under the Bankruptcy Code.
The Parties have agreed to the use of the cash collateral by the
Debtor pursuant to these terms:
(a) On June 1st, June 20th, and the 20th day of each
succeeding month for so long as the Debtor's cash collateral
authority remains in effect, the Debtor will make adequate
protection payments to Brave in the amount of $5,698 each;
(b) The Debtor will email accounts receivable reports to
Brave's representative on the 15th of each month, which shall be
current as of the date of delivery;
(c) In the Cash Collateral Order, Brave will be granted
standard protections against any diminution in the value of its
cash collateral, including but not limited to replacement liens on
all postpetition assets and a superpriority administrative claim;
and
(d) In the event of any default by the Debtor under the cash
collateral, Brave may notify the Debtor's counsel of the default
via email, in which case, the Debtor's cash collateral will
immediately terminate and the Debtor will thereupon automatically,
and without further Court order, be prohibited from further use of
cash collateral without Brave's express written consent.
A copy of the stipulated motion is available at
https://urlcurt.com/u?l=JfxMK9 from PacerMonitor.com.
About Whitetail General Constructors
Whitetail General Constructors, LLC provides ground-up construction
and remodel or renovation services for both commercial and
residential customers. The company is based in Belgrade, Mont.
Whitetail General Constructors filed its voluntary petition for
Chapter 11 protection (Bankr. D. Mont. Case No. 23-20031) on March
16, 2023, with $1 million to $10 million in assets and $100,000 to
$500,000 in liabilities. James Jones, president of Whitetail
General Constructors, signed the petition.
Judge Benjamin P. Hursh oversees the case.
Shimanek Law, PLLC serves as the Debtor's bankruptcy counsel.
WWMAJ SYSTEMS: G. Matt Barberich, Jr. Named Subchapter V Trustee
----------------------------------------------------------------
The U.S. Trustee for Region 14 appointed G. Matt Barberich, Jr. of
B. Riley Advisory Services as Subchapter V trustee for WWMAJ
Systems LLC.
Mr. Barberich will be paid an hourly fee of $300 for his services
as Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Barberich declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
G. Matt Barberich, Jr.
B. Riley Advisory Services
7101 College Boulevard, Suite 730
Overland Park, KS 66210
Phone: 913-389-9270
Email: mbarberich@brileyfin.com
About WWMAJ Systems
WWMAJ Systems, LLC is an online retailer with experience in the
beverage and grocery industries. The company conducts business
under the name LRB Superstore.
WWMAJ Systems filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. D. Kan. Case No. 23-20536) on May 16,
2023, with $100,000 to $500,000 in assets and $1 million to $10
million in liabilities. Will Young, chief executive officer and
president of WWMAJ Systems, signed the petition.
Judge Dale L. Somers oversees the case.
Robert Baran, Esq., at Conroy Baran is the Debtor's legal counsel.
XPLORE INC: S&P Downgrades ICR to 'CCC+' on Lower Earnings
----------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Atlantic
Canada-based rural broadband service provider Xplore Inc. (formerly
Xplornet Communications Inc.) to 'CCC+' from 'B-'.
At the same time, S&P lowered its issue-level ratings on the
company's first-lien term loan to 'CCC+' from 'B-' and on its
second-lien term loan to 'CCC-' from 'CCC'. The recovery ratings on
the debt are unchanged.
In addition, S&P revised its liquidity assessment on Xplore to less
than adequate from adequate.
The negative outlook reflects S&P's view that it could lower the
ratings further if Xplore is unable to improve its growth
trajectory in the next 12 months, despite significant capital
spending on fiber expansions and access to Jupiter 3 satellite
capacity. The outlook also reflects the risk that the company's
capital structure could prove unsustainable given the increased
debt leverage and eroding liquidity amid difficult market
conditions.
Subscriber attrition in 2022 resulted in EBITDA deterioration and
increased debt leverage. In 2022, Xplore Inc.'s broadband
subscriber base declined 12% (to about 366,000) because attrition
in the company's legacy fixed wireless and satellite offerings more
than offset growth from newer platforms. This, combined with
increased costs to upgrade and expand the company's network, caused
deterioration of S&P Global Ratings-adjusted EBITDA of about 15%
compared with the previous year. For the next 12 months, S&P
expects the company's EBITDA will remain pressured given the time
required to deploy and commercialize more competitive services such
as 5G wireless or fiber-based offerings. Also, unexpected delays in
access to the yet-to-be launched Jupiter 3 broadband satellite
(anticipated for third-quarter 2023) could continue to hurt growth
and profitability. Furthermore, S&P expects Xplore's 2023 EBITDA
margins will be pressured (albeit to a lesser extent than in 2022)
due to higher operating costs related to network expansion along
with ongoing revenue pressure. As a result, S&P expects that the
S&P Global Ratings-adjusted debt to EBITDA ratio will remain
elevated in the 8.0x-8.5x range for 2023.
S&P said, "We expect the Accelerated High-Speed Internet Program
will assist in subscriber growth; however, free operating cash flow
will remain negative at least for the next 24 months. Despite
Xplore's support from government program subsidies and an equity
injection from its financial sponsor Stonepeak Capital Partners for
network expansion and fiber builds, we forecast Xplore's free
operating cash flow (FOCF) will be negative for at least the next
24 months. The capital expenditure (capex) required for the
Accelerated High-Speed Internet Program (AHSIP; Infrastructure
Ontario) is significantly high; however, Xplore aims to increase
its subscriber base once it completes the project. We anticipate
half of the project would be funded by government subsidies and the
remaining half would be funded by a combination of additional debt
from the Canada Infrastructure Bank, Xplore's operations, and most
likely an equity injection from Stonepeak. However, since the
program is still in the initial phase, we expect EBITDA generation
from the project only in 2024 or beyond. Moreover, with the delay
in the launch of Jupiter 3 satellite to third-quarter from
first-quarter 2023, we do not see limited cash flow visibility at
least for the next 12 months.
"We revised Xplore's liquidity assessment to less than adequate,
driven by increased capital requirements and limited near-term
visibility on a potential recovery. We do not anticipate a
near-term default from a liquidity shortfall at this stage given
the company's access to about C$60 million cash and cash
equivalents as of March 31, 2023, and with modest debt maturities
until 2028. On the other hand, as of March 31, Xplore has drawn
more than 92% of its revolving credit facility (RCF) with only C$12
million available (about C$11.5million in letters of credit
outstanding). However, we believe the company's liquidity is
partially supported in the near term by the divestiture of certain
noncore wireless spectrum assets. The proceeds from the sale
(completed in May 2023) would be used to repay the C$40 million a
liquidity bridge loan from Stonepeak and the rest would be used to
invest in the network enhancement and expansion. With the roll-out
of 5G fixed wireless broadband and fiber-to-the-premises through
the AHSIP, we expect Xplore should be able to provide
higher-priced, faster-speed broadband packages to additional
customers, leading incremental growth on a quarterly basis.
However, the cash inflow from the project is expected only in 2024
(and beyond) and is highly contingent on the successful roll-out of
the company's fixed wireless broadband packages as well as
execution in adding new subscribers at higher-price points.
"The negative outlook reflects the risk that Xplore's earnings and
FOCF could materially weaken below our expectations, reflecting
further launch delays of the Jupiter 3 satellite or
slower-than-expected subscriber onboarding despite expansion of the
company's fiber footprint in the next 12 months. We expect such a
scenario would further increase the company's debt leverage and
erode liquidity amid difficult market conditions, with rising cost
of capital, eventually leading to a debt restructuring event.
"We could lower our rating on Xplore if we believe it will face a
near-term liquidity shortfall or engage in a distressed exchange in
the next 12 months, spurred by further weakening of its financial
metrics due to continued operational underperformance amid high
capex and cash burn.
"We could revise our outlook on Xplore to stable if the company is
able to stem the drop in its broadband subscribers and generate
positive EBITDA growth. Although unlikely over the next year, we
could raise our rating if the company demonstrated an ability to
sustainably expand its customer base and improve profitability such
that leverage improves to below 7x, with positive FOCF and a
credible forward-looking deleveraging path that provides more
cushion to absorb adverse business, financial, and/or market
conditions."
ESG credit indicators: E-2, S-2, G-3
Governance is a moderately negative consideration for Xplore. This
is the case for most rated entities owned by private-equity
sponsors. S&P believes the company's highly leveraged financial
risk profile points to corporate decision-making that prioritizes
the interests of the controlling owners. This also reflects the
generally finite holding periods and a focus on maximizing
shareholder returns.
ZEOLI-BROWN LLC: Amends Unsecureds & Huntington Bank Secured Claim
------------------------------------------------------------------
Zeoli-Brown LLC submitted a Second Amended Plan of Reorganization
dated May 22, 2023.
Post-petition, the Debtor has taken steps to improve its bottom
line. These steps have resulted in the Debtor being profitable
post-petition and include:
* The raising of menu prices to cover the rising food costs.
* A reduction in the amount the Debtor's representative Scott
Brown takes in salary.
* Increasing its social media presence to attract more
restaurant customers.
* The fine tuning of employee schedules to avoid unnecessary
labor costs.
These changes have resulted in an increase in profitability and
support the projections prepared by the Debtor and attached to this
amended plan.
Class 3 consists of the secured claim of Huntington Bank. The
entire secured claim of Huntington Bank will total $125,000. The
balance of Huntington Bank claim shall be treated as a general
unsecured claim. The secured claim shall bear interest at 10.25%
and be payable in 60 equal monthly payments of $2671.28 with the
first payment due 30 days from confirmation.
Huntington Bank shall retain its liens; which liens will attach to
all of the Debtor's assets including the continuation of the
parties underlying loan documents. In addition to the $125,000 plus
interest payment, Huntington Bank shall be entitled to payment of
100% of any ERC funds approved by the Federal Government.
The Class 9 claim of unsecured creditors in the amount of $811,789
shall share prorate in the sum total of not less than $37,500.
Starting in 2026 (on the third anniversary of the confirmation of
this plan) the Debtor shall do the following:
* It shall prepare a cash flow statement for the first 36
months of the plan.
* It shall mail a copy of that cash flow analysis to each
unsecured creditor together with its prorate share of the yearly
plan payment to unsecured creditors.
* To the extent that the Debtor generates income over and
above that necessary to meet its obligations as they come due and
its required plan payments to all other classes the prorate share
shall increase by that amount.
* Nothing in the subsection paragraph shall allow the Debtor
to pay less than $37,500 to unsecured creditors.
The Debtor's financial projections show that the Debtor will have
projected disposable income in an amount sufficient to pay all
claims for payment as required by this Plan.
A full-text copy of the Second Amended Plan dated May 22, 2023 is
available at https://urlcurt.com/u?l=8JdrNm from PacerMonitor.com
at no charge.
Debtor's Counsel:
George E. Jacobs, Esq.
Bankruptcy Law Office
2425 S. Linden Rd., Ste. C
Flint, MI 48532
Tel: (810) 720-4333
Email: george@bklawoffice.com
About Zeoli-Brown LLC
Zeoli-Brown, LLC -- https://ZeolisItalian.com/ -- operates the
Italian restaurant Zeoli's Modern Italian in Clawson, Mich.
Zeoli-Brown filed a petition for relief under Subchapter V of
Chapter 11 of the Bankruptcy Code (Bankr. E.D. Mich. Case No.
22-48133) on Oct. 18, 2022, with $123,998 in assets and $1.15
million in liabilities. Mark H. Shapiro has been appointed as
Subchapter V trustee.
Judge Maria L. Oxholm oversees the case.
George E. Jacobs, Esq., at Bankruptcy Law Office and McNeil &
Associates, P.C., serve as the Debtor's legal counsel and
accountant, respectively.
ZIP MAILING: Seeks Cash Collateral Access
-----------------------------------------
Zip Mailing Services, Inc. asks the U.S. Bankruptcy Court for the
District of Maryland, Greenbelt Division, for authority to use cash
collateral and provide adequate protection, through and including
June 6, 2023.
The Debtor requires the use of cash collateral to meet its ordinary
and necessary expenses.
The Debtor was formed in 1984. In 2015, Darryl Jackson, Sr.,
purchased the Debtor, which provides mailing services to
governmental entities, educational institutions, local businesses
and charitable organizations. Jackson, Sr. passed away in 2021. His
son, Darryl Jackson, Jr. succeeded to president and sole owner of
the Debtor.
As a result of Jackson, Sr.'s illness and ultimate passing, coupled
with supply chain issues, increased costs, and a general lack of
liquidity, the Debtor sought and obtained high interest loans in an
effort to "right the ship." Those loans exacerbated an already
strained cash flow challenge, which ultimately proved
insurmountable, causing the Debtor to file for bankruptcy.
The Debtor seeks authority to use the cash collateral of Newco
Capital Group VI, LLC to pay ordinary business expenses for the
14-day period following the Petition Date, or for a longer period
approved by the Court, not to exceed 30 days.
On the Petition Date, NCG asserted a claim for $169,328, against
the Debtor, evidenced by, among other things, a Revenue Purchase
Agreement and Security Agreement and Guaranty of Performance, dated
November 22, 2022. On December 19, 2022, NCG filed a UCC-1
Financing Statement with the Maryland State Department of
Assessments and Taxation, asserting a first-priority lien on and
against certain assets of the Debtor, including, inter alia, the
Debtor's accounts.
The creditors who assert liens and security interests in the
Debtor's accounts are:
(i) Breakout Capital, LLC: $660,642 (incurred February 27,
2023);
(ii) Everest Business Funding: $228,461 (incurred March 1,
2023);
(iii) Ultra Funding, LLC: $122,499.98 (incurred March 28, 2023)
In order for the Debtor to operate its business, meet its
obligations and preserve its property and in order to avoid
irreparable harm to the bankruptcy estate, it is necessary for the
Debtor to use its accounts and proceeds of the Pre-Petition
Collateral in which NCG asserts a security interest to pay its
ordinary and necessary expenses. As set forth in the Budget, the
Debtor will pay $950 per month to NCG in adequate protection of its
collateral.
NCG will be granted adequate protection, retroactive to the
Petition Date, of its interest in the Pre-Petition Collateral in
an amount equal to the aggregate diminution in value, if any, of
such interests from and after the Petition Date.
NCG will be granted a replacement lien on the same assets and in
the same priority and extent of its Pre-Petition Collateral, if
any.
A copy of the motion is available at https://urlcurt.com/u?l=ov8omX
from PacerMonitor.com.
About Zip Mailing Services, Inc.
Zip Mailing Services, Inc. operates a commercial mailing service in
Landover, Maryland.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Md. Case No. 23-13736) on May 26, 2023.
In the petition signed by Darryl Jackson, Jr., its president, the
Debtor disclosed up to $500,000 in assets and up to $10 million in
liabilities.
Christopher L. Hamlin, Esq., at McNamee Hosea, P.A., represents the
Debtor as legal counsel.
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Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
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then-ending.
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S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
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Pennsylvania, USA, and Beard Group, Inc., Philadelphia, Pa., USA.
Randy Antoni, Jhonas Dampog, Marites Claro, Joy Agravante,
Rousel Elaine Tumanda, Joel Anthony G. Lopez, Psyche A. Castillon,
Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and
Peter A. Chapman, Editors.
Copyright 2023. All rights reserved. ISSN: 1520-9474.
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*** End of Transmission ***