/raid1/www/Hosts/bankrupt/TCR_Public/230607.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, June 7, 2023, Vol. 27, No. 157
Headlines
2202 EAST: Court Okays Appointment of Chapter 11 Trustee
2518 CLEBURNE: Voluntary Chapter 11 Case Summary
3I AVI: Gets OK to Hire Favazza & Associates as Accountant
5 STAR POOL PLASTER: Taps Law Offices of Ryan C. Wood as Counsel
540 WILLOUGHBY: Files Bare-Bones Chapter 11 Petition
ACCAM1 INC: Events Organizer Files for Chapter 11 Bankruptcy
AEARO TECHNOLOGIES: Earplug Trial Sanctions Return to Lower Court
AINS NASHVILLE: Case Summary & 20 Largest Unsecured Creditors
ALIERA COMPANIES: Seeks Interim Approval of Disclosure Statement
ALLIED HEALTHCARE: Court OKs $4MM DIP Loan from Sterling
ALPINE 4 HOLDINGS: Gets Additional Nasdaq Noncompliance Notice
ARK LABORATORY: Court OKs Cash Collateral Access Thru June 8
ARRAY TECHNOLOGIES: S&P Alters Outlook to Pos., Affirms 'B' ICR
ART OF MEDICINE: Contribution & Continued Operation to Fund Plan
BED BATH & BEYOND: Potential Bidders Emerge; Creditors Reach Deal
BENEFYTT TECHNOLOGIES: In Chapter 11 to Split Into Two Companies
BINION CREEK: Case Summary & One Unsecured Creditor
BLUE STAR: Issues $1.2M Convertible Promissory Note to Lind Global
BLUE STAR: Receives Noncompliance Notice From Nasdaq
BRBRSHY INVESTMENTS: Voluntary Chapter 11 Case Summary
BSI 254 WESTFIELD: Involuntary Chapter 11 Case Summary
BUCKHEAD PROPERTY: Case Summary & Three Unsecured Creditors
CARING HANDS: Seeks Cash Collateral Access
CEDIPROF INC: Chapter 11 Plan Delayed by Lannett Bankruptcy
CERTIFIED 360: Seeks to Hire William Haeberle as Accountant
CHRISTMAS TREE SHOPS: Rent Payment Escrow Okayed
CHURCHILL ORTHOPEDIC: Case Summary & 20 Top Unsecured Creditors
CLAUSEN OYSTERS: Court OKs Cash Collateral Access Thru June 21
CLAUSEN OYSTERS: Geoffrey Groshong Named Subchapter V Trustee
CLEAR CHOICE: Seeks Cash Collateral Access
CLOVIS ONCOLOGY: Committee Taps Baker & McKenzie as Legal Counsel
CONCRETE SOLUTIONS: Court OKs Cash Collateral Access Thru Nov 21
CONSTANT CONTACT: S&P Lowers ICR to 'B-' on High Interest Rates
CRYPTO CO: Increases Authorized Common Shares to 2 Billion
CTI BIOPHARMA: Cancels 2023 Annual Meeting of Stockholders
CURITEC LLC: Ongoing Operation to Fund Plan Payments
CYXTERA TECHNOLOGIES: Case Summary & 30 Top Unsecured Creditors
CYXTERA TECHNOLOGIES: Initiates Pre-Arranged Chapter 11 Process
DIAMANTE ENTERPRISES: Case Summary & 10 Unsecured Creditors
DIAMOND SPORTS: MLB Takes Over Padres Broadcasts After Non-Payment
DIVISION SEVEN: Case Summary & 20 Largest Unsecured Creditors
ESJ TOWERS: Unsecureds Owed $25M to Get 3% of Claims in 60 Months
FARMHOUSE CREATIVE: Bid to Use Cash Collateral Denied as Moot
FORD CITY RX: Wins Final Cash Collateral Access
FTX GROUP: Independent Examiner Fight Moves to Appeals Court
FUSE GROUP: Sells $50K Convertible Promissory Note to Liu Marketing
G.A.H. BAR-B-Q: Amends Unsecured Claims Pay Details
GACE CONSULTING: Taps Wilk Auslander as Legal Counsel
GEORGE XENAKIS: Mark Politan Named Subchapter V Trustee
GILBERT BARBEE: Exclusivity Period Extended to July 28
GLOBAL AVIATION: Court OKs Interim Cash Collateral Access
GLOBAL TEE: Court OKs Interim Cash Collateral Access
GOLESIS PROPERTIES: Brian Rothschild Named Subchapter V Trustee
GOLYAN ENTERPRISES: Taps Law Offices of Avrum J. Rosen as Counsel
HEART OF TEXAS: Seeks Cash Collateral Access
HONX INC: Unsecured Creditors to Recover Nothing
HOODSTOCK ENTERPRISES: U.S. Trustee Unable to Appoint Committee
HTG MOLECULAR: Case Summary & 20 Largest Unsecured Creditors
HUB INTERNATIONAL: S&P Affirms 'B' Long-Term ICR, Outlook Stable
INTERNAP HOLDING: Amends Unsecured Claims Details
IYS VENTURES: Files Bare-Bones Chapter 11 Petition
J.A.R. CONCRETE: Taps State Street as Appraiser
KCIBT HOLDINGS: S&P Downgrades ICR to 'SD' on Debt Amendments
KDP LLC: Natasha Songonuga Named Subchapter V Trustee
KPG REVENUE: Edward Burr Named Subchapter V Trustee
LIFSEY REAL ESTATE: Unsecured Creditors to Split $36K in Plan
LITTLE ROAD: Brian Rothschild Named Subchapter V Trustee
LTL MANAGEMENT: J&J's Talc Deal Faces Key Test During Oakland Trial
LURADIANT LLC: Seeks Chapter 11 Bankruptcy Protection
LURADIANT LLC: Seeks to Hire Workman Nydegger as Legal Counsel
LYM DEVELOPMENT: Taps KW Philly South as Real Estate Broker
MALLINCKRODT PLC: Considers Second Bankruptcy Filing, Other Options
MALLINCKRODT PLC: Opioid Victims Slam Lenders' Move to Cut Payouts
MCDERMOTT INT'L: In Talks for Letters of Credit Extension
MISSISSIPPI CENTER: Court OKs Cash Collateral Access Thru Aug 31
MODIVCARE INC: S&P Downgrades ICR to 'B', On Watch Negative
MRS BUSY BEE: Files Emergency Bid to Use Cash Collateral
N. F. INTERNATIONAL: Files Emergency Bid to Use Cash Collateral
NARKE ASHSTREET: Voluntary Chapter 11 Case Summary
NAT'L CINEMEDIA: Enters Into New Advertising Agreement with Regal
NATURAL VITALITY: Steven Nosek Named Subchapter V Trustee
NEXTPLAY TECHNOLOGIES: Needs Additional Time to File Form 10-K
NGL ENERGY: Stephen Cropper Quits as Director
NGL ENERGY: Swings to $52.5 Million Net Income in FY Ended March 31
NXT ENERGY: Hires MNP LLP as New Auditor
OPULENT VACATIONS: D. Ray Strong Named Subchapter V Trustee
PARTY CITY HOLDCO: Taps Capstone Capital as Investment Banker
PASO DEL NORTE: Taps State Street as Appraiser
PGX HOLDINGS: Case Summary & 30 Largest Unsecured Creditors
PHOTIZO LLC: Court OKs Final Cash Collateral Access
PIERLO INC: Gets OK to Hire Allen Jones & Giles as Legal Counsel
PIERLO INC: Joseph Cotterman Named Subchapter V Trustee
PORTER'S PENINSULA: Kimberly Clayson Named Subchapter V Trustee
PURDUE PHARMA: Appeals Court Affirms Immunity for Sacklers
PURDUE PHARMA: Sacklers' Win Deepening Courts' Split Over Releases
RADIOLOGY PARTNERS: S&P Cuts ICR to 'CCC+' on Tightening Liquidity
RAP OPERATING: Seeks Access to Homeland Federal's Cash Collateral
RCM-TO GO: Nathan Smith Named Subchapter V Trustee
RECONDITION PROS: Unsecureds to Get 100% in Subchapter V Plan
RIGHT CHOICE: Maria Yip Appointed as Chapter 11 Trustee
RJT FOOD: Salvatore LaMonica Appointed as Chapter 11 Trustee
ROCKLEY PHOTONICS: Completes Restructuring, Exits Chapter 11
ROLPA TRUCKING: Case Summary & 13 Unsecured Creditors
SAMSONITE IP: S&P Rates Credit Facility and Term Loans A/B 'BB+'
SANUWAVE HEALTH: Board Appoints Morgan Frank as CEO
SCCW INDUSTRIAL: Case Summary & Four Unsecured Creditors
SEAICH CARD: Available Cash & Sale Proceeds to Fund Plan
SNOWSHOE MILLWORKS: Case Summary & Seven Unsecured Creditors
SOLANO COUNTY BLACK: Lisa Holder Named Subchapter V Trustee
STRUCTURLAM TIMBER: $81-Mil. Sale to Mercer Approved
SYNTHESIS INDUSTRIAL: July 19 Plan & Disclosure Hearing Set
TRIUMPH GROUP: Advances Board Refreshment
TRIUMPH GROUP: Swings to $89.6M Net Income in FY Ended March 31
USUGA MANAGEMENT: Voluntary Chapter 11 Case Summary
VALLEY PROPERTY: Taps Coldwell Banker Realty as Broker
VELOCIOUS DELIVERY: Amends Plan to Include Disputed Claims Pay
VIDEO DISPLAY: Incurs $2 Million Net Loss in FY Ended Feb. 28
VINTAGE WEST: Seeks Cash Collateral Access
VYERA PHARMACEUTICALS: Seeks Court Approval to Hire CRO
VYERA PHARMACEUTICALS: Taps Alvarez & Marsal as Investment Banker
WESCO AIRCRAFT: Davis Polk Advises Noteholders in Incora Chapter 11
WHITE RABBIT: Court OKs Cash Collateral Access Thru June 30
WILLIAMS LAND: Taps Caleb Thomas as Chief Restructuring Officer
WOLF EMPIRE: Case Summary & Six Unsecured Creditors
YC RIVERGOLD: U.S. Trustee Unable to Appoint Committee
[*] Peter York Joins Gordon Brothers as Exec Team Senior Advisor
*********
2202 EAST: Court Okays Appointment of Chapter 11 Trustee
--------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California
approved the appointment of Carolyn Dye, Esq., as Chapter 11
trustee for 2202 East Anderson Street, LLC.
The approval comes upon the application filed by the U.S. Trustee
for Region 16 to appoint a bankruptcy trustee to take over 2202
East's Chapter 11 case.
Ms. Dye disclosed in a court filing that she does not have an
interest materially adverse to the interest of the estate,
creditors and equity security holders of 2202 East.
Ms. Dye holds office at:
Carolyn Dye, Esq.
Law Office of Carolyn A. Dye
15030 Ventura Blvd., #527
Sherman Oaks, CA 91403
Tel: 818-287-7003
About 2202 East Anderson Street
2202 East Anderson Street, LLC, a Los Angeles-based company, filed
a petition under Chapter 11, Subchapter V of the Bankruptcy Code
(Bankr. C.D. Calif. Case No. 23-11695) on March 23, 2023, with $1
million to $10 million in both assets and liabilities. Susan K.
Seflin was appointed as Subchapter V trustee.
On May 22, 2023, the bankruptcy court issued an order striking 2202
East's designation as a Subchapter V debtor and on May 23, 2023,
the court ordered the U.S. Trustee for Region 16 to appoint a
Chapter 11 trustee.
Judge Neil W. Bason oversees the case.
The Debtor is represented by Raymond H. Aver, Esq., at the Law
Offices of Raymond H. Aver.
2518 CLEBURNE: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: 2518 Cleburne Housing LLC
12333 Sowden Rd Ste B
Houston, TX 77080
Chapter 11 Petition Date: June 5, 2023
Court: United States Bankruptcy Court
Southern District of Texas
Case No.: 23-32106
Judge: Hon. Eduardo V. Rodriguez
Debtor's Counsel: Susan Tran Adams, Esq.
TRAN SINGH, LLP
2502 La Branch St.
Houston, TX 77004
Email: stran@ts-llp.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Robert L. Wiseman as managing member.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/JOCUWFI/2518_Cleburne_Housing_LLC__txsbke-23-32106__0001.0.pdf?mcid=tGE4TAMA
3I AVI: Gets OK to Hire Favazza & Associates as Accountant
----------------------------------------------------------
3i AVI, LLC received approval from the U.S. Bankruptcy Court for
the Eastern District of Missouri to employ Favazza & Associates,
LLC.
The Debtor requires an accountant to:
a. prepare and file federal and state tax returns for the year
2022;
b. review the receipts and disbursements of the Debtor's
bankruptcy estate;
c. advise the Subchapter V trustee concerning the need for
filing tax returns for the estate; and
d. prepare the necessary federal and state tax returns for the
duration of the Debtor's Chapter 11 proceedings.
The firm will be paid at the rate of $195 per hour.
Michael Favazza, a partner at Favazza & Associates, disclosed in a
court filing that his firm is a "disinterested person" pursuant to
Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Michael Favazza
Favazza& Associates, LLC
1395 Jungermann Road
St. Peters, MO 63376
Telephone: (636) 916-1010/(636) 352-0568
Facsimile: (636) 916-1014
Email: mike@favazzacpa.com
About 3i AVC
3i AVC LLC -- https://blackwidowimaging.com/ -- doing business as
Black Widow Imaging, is an Internet software and services provider
in Wentzville, Mo.
3i AVI filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. E.D. Mo. Case No. 22-41053) on April 12,
2022, with $61,420,000 in total assets and $159,339 in total
liabilities. Stephen D. Coffin has been appointed as Subchapter V
trustee.
Judge Kathy A. Surratt-States oversees the case.
The Debtor tapped David M. Dare, Esq., at Herren, Dare & Streett as
bankruptcy counsel; Stinson, LLP as special patent counsel; and
Favazza & Associates, LLC as accountant.
5 STAR POOL PLASTER: Taps Law Offices of Ryan C. Wood as Counsel
----------------------------------------------------------------
5 Star Pool Plaster, Inc. received approval from the U.S.
Bankruptcy Court for the Northern District of California to employ
the Law Offices of Ryan C. Wood, Inc. to handle its Chapter 11
bankruptcy case.
The firm will be compensated at $450 per hour and will be
reimbursed for out-of-pocket expenses incurred.
The retainer is $5,000.
Ryan Wood, Esq., a partner at the Law Offices of Ryan C. Wood,
disclosed in a court filing that his firm is a "disinterested
person" pursuant to Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Ryan C. Wood, Esq.
Law Offices of Ryan C. Wood, Inc.
611 Veterans Blvd. Ste. 218
Redwood City, CA 94063
Tel: (650) 366-4858
Fax: (650) 366-4875
Email: Ryan@WestCoastBK.com
About 5 Star Pool Plaster
5 Star Pool Plaster, Inc. filed a Chapter 11 bankruptcy petition
(Bankr. N.D. Calif. Case No. 23-40388) on April 5, 2023, with as
much as $1 million in both assets and liabilities. Judge William J.
Lafferty oversees the case.
The Debtor is represented by the Law Offices of Ryan C. Wood, Inc.
540 WILLOUGHBY: Files Bare-Bones Chapter 11 Petition
----------------------------------------------------
540 Willoughby Avenue LLC filed for chapter 11 protection in
Brooklyn, New York, without stating a reason.
According to court filings, 540 Willoughby Avenue disclosed
$1,198,000 in debt owed to 1 to 49 creditors. The petition states
that funds will be available to unsecured creditors.
A teleconference meeting of creditors under 11 U.S.C. Section
341(a) is slated for June 30, 2023, at 9:30 a.m.
An initial case management conference has been scheduled for July
27, 2023, at 10:30 AM at Courtroom 3585 (Judge Stong), Brooklyn,
NY. (ads)
About 540 Willoughby Avenue
540 Willoughby Avenue LLC owns a certain real property located at
7218 Avenue M, Brooklyn NY 11234 Block 8362, Lot 47, valued at
$895,000.
540 Willoughby Avenue LLC filed a petition for relief under Chapter
11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No. 23-41814) on
May 23, 2023. In the petition filed by Rahim Siunykalimi, as
president/owner, the Debtor reported total assets of $895,000 and
total liabilities of $1,198,000.
The Honorable Bankruptcy Judge Elizabeth S. Stong oversees the
case.
The Debtor is represented by:
Bruce Weiner, Esq.
Rosenberg Musso & Weiner LLP
123 Church Avenue
Brooklyn, NY 11218
Tel: 718-855-6840
Fax: 718-625-1966
Email: courts@nybankruptcy.net
ACCAM1 INC: Events Organizer Files for Chapter 11 Bankruptcy
------------------------------------------------------------
ACCAM1 INC. and affiliate Snow Mass Property, LLC, filed for
chapter 11 protection. The Debtors elected to proceed under
Subchapter V of chapter 11 of the Bankruptcy Code.
ACCAM1 is engaged in the business of providing event planning and
production services for public events. This includes services for
weddings, funerals, and graduations through the Southwest Florida
area. The Debtor's business is located at 12090 Metro Parkway,
Fort Myers, FL 33966.
Affiliate Snow Mass Property LLC owns the main warehouse used by
ACCAM1.
Al Mueller is ACCAM1's president and 100% shareholder. He is also
the sole member of Snow Mass.
Since 2017, ACCAM1 has become the premier provider of "event
staging" services throughout the SW Florida Region. With the
advent of the Covid-19 pandemic, all of the Debtor's operations
were shutdown. Gradually, the Debtor began to recover from the
impact of the pandemic. But then, in September of 2022, Southwest
Florida became ground zero in the aftermath of Hurricane Ian. The
foundation of the Debtor's business operations was wiped out by the
storm.
The Debtor needed to restructure some of its obligations, including
its loan with Regions Bank, its largest lender. During its
restructuring efforts, a significant payment was involuntarily made
to Regions Bank by the Debtor after its principal, Al Mueller,
closed on two real estate transactions in 2021. Through
questionable means, Regions Bank took $600,000 in proceeds from the
real estate closings, and after applying them to the loan,
subsequently declared the Debtor in default, accelerated the loan
and filed foreclosure proceedings against the Debtor. The
continued prosecution of the foreclosure action by Regions Bank
necessitated the Chapter 11 filing.
Prior to the Petition Date, Debtor borrowed funds from Regions Bank
under a secured promissory note and security agreement. On the
Petition Date, Regions asserts that it is owed approximately
$2,500,000 respectively, on account of the note and security
agreement.
About Accam1 Inc.
ACCAM1, Inc., is engaged in the business of providing event
planning and production services for public events.
Accam1, Inc., and Snow Mass Property, LLC, sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No.
23-00574 and 23-00575) on May 23, 2023.
In the petition signed by Al Mueller, president, Accam1 disclosed
up to $10 million in both assets and liabilities. The petition
states that funds will be available to unsecured creditors.
Jonathan Bierfeld, Esq., at Martin Law Firm, represents the
Debtors.
AEARO TECHNOLOGIES: Earplug Trial Sanctions Return to Lower Court
-----------------------------------------------------------------
Martina Barash of Bloomberg Law reports that a federal judge
overseeing veterans' earplug defect cases against 3M Co. acted
incorrectly when imposing sanctions totaling $12,000 on two of the
company's trial attorneys, the Eleventh Circuit said Wednesday, May
24, 2023.
The sanctions issue will return to the lower court for a fresh
determination.
The ruling marks the second time a panel of the US Court of Appeals
for the Eleventh Circuit has stayed Judge M. Casey Rodgers' hand in
the multidistrict litigation over combat earplugs made by 3M and
its subsidiary, Aearo Technologies LLC.
In October 2022, the appeals court court -- without comment --
granted 3M's procedural request that it be allowed to continue
making certain arguments in bankruptcy court while it pursued its
appeal of Rodgers' prohibition of those arguments.
Meanwhile, an appeal currently pending before a different panel at
the Eleventh Circuit raises an immunity issue that could wipe out
the whole litigation.
Hearing Loss Claims
About 230,000 current and former service members are suing 3M and
Aearo, alleging Aearo's Combat Arms version 2 earplugs were
ineffective and left users with hearing loss and tinnitus. The
devices were intended to block loud noises while allowing voices to
be heard. Aearo has filed for Chapter 11 protection in the US
Bankruptcy Court for the Southern District of Indiana.
Rodgers sanctioned the two Dechert LLP lawyers, Kimberly Branscome
and Jay Bhimani, at the end of a June 2021 test trial for violating
her order about how to present a piece of evidence in closing
arguments. The plaintiff, Lloyd Baker, was among 13 service members
who prevailed in bellwether trials. 3M won six trials.
The controversy centered on a slide that said the earplugs had a
specific noise reduction rating.
Branscome was to instruct jurors that they could consider the slide
to support or discredit an expert's opinion but not to consider it
as support that the earplugs had that rating, Rodgers told Bhimani
in a conference that Branscome wasn't present for, according to the
Eleventh Circuit.
But Branscome failed to tell the jury on her own that they
couldn’t consider the noise reduction rating for its truth,
Rodgers said.
When the jury was deliberating, Rodgers told Branscome and Bhimani
that "right now my intent is to enter monetary sanctions against
one or both of you," and seven hours later she asked to hear from
them. In a written order, she said the attorneys' "conduct cannot
be reasonably construed as anything other than willful."
The Eleventh Circuit said that Rodgers didn’t give them the
necessary notice.
Further, "because the district court imposed sanctions under its
inherent power to do so," it needed "to find that the attorneys
subjectively engaged in bad faith," Judge Barbara Lagoa said for
the court. But Rodgers didn't do that when saying the conduct
couldn't be construed as other than willful, Lagoa said.
On remand, Rodgers should apply the bad faith standard, she said,
joined by Judges Robin S. Rosenbaum and Britt C. Grant.
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.
AINS NASHVILLE: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: AINS Nashville LLC
DBA The Ainsworth Nashville
206 21st Ave S
Suite D-2
Nashville, TN 37203
Chapter 11 Petition Date: June 5, 2023
Court: United States Bankruptcy Court
Eastern District of New York
Case No.: 23-41997
Judge: Hon. Jil Mazer-Marino
Debtor's Counsel: Fred S. Kantrow, Esq.
THE KANTROW LAW GROUP, PLLC
732 Smithtown Bypass
Suite 101
Smithtown, NY 11787
Tel: 516 703 3672
Email: fkantrow@thekantrowlawgroup.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Matthew Shendel 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/LDYQ7WI/AINS_Nashville_LLC__nyebke-23-41997__0001.0.pdf?mcid=tGE4TAMA
ALIERA COMPANIES: Seeks Interim Approval of Disclosure Statement
----------------------------------------------------------------
The Aliera Companies Inc. d/b/a Aliera Healthcare, Inc., et al. and
the Official Committee of Unsecured Creditors filed a motion for
entry of an order granting interim approval of the Disclosure
Statement to permit the Plan Proponents to solicit the Plan, with
final approval of the Disclosure Statement combined with the
hearing on confirmation of the Plan, fixing the dates and deadlines
related to solicitation and confirmation of the Plan as set forth
in the Confirmation Schedule, approving certain solicitation,
notice and tabulation procedures with respect to confirmation of
the Plan, approving the forms of the ballots and the notices in
connection therewith and granting other related relief.
A hearing on the Motion will be held on June 16, 2023 at 10:00 a.m.
(ET) before the Honorable Thomas M. Horan of the U.S. Bankruptcy
Court of the District of Delaware. Objections, if any, to the
Motion must be served on or before June 8, 2023, at 4:00 p.m.
(ET).
In general, the Plan provides for (i) the contribution of all
Liquidating Trust Assets to the Trust; (ii) the designation of a
Liquidation Trustee to, prosecute, continue or settle certain
Causes of Action, reconcile Claims and make distributions to
Holders of Allowed Claims, and administer the Plan and Trust in an
efficacious manner; and (iii) for the holders of Administrative
Claims, Secured Tax Claims, Priority Tax Claims, Other Priority
Claims and Miscellaneous Secured Claims to be treated in accordance
with the terms of the Bankruptcy Code.
Classes 3 (Unsecured Trade Claims), 4 (Unsecured Medical Claims),
and 5 (Subordinated Governmental Claims) are the only holders of
Claims or Interests that are entitled to vote on the Plan
(individually, a "Voting Class" and collectively, the "Voting
Classes"). All other holders of Claims or Interests are not
entitled to vote on the Plan because each such holder holds a Claim
or Interest that is either (i) unimpaired under the Plan and deemed
to accept the Plan; or (ii) impaired and deemed to reject the
Plan.
A summary of the key dates the Plan Proponents seek to establish,
subject to the Court's availability, by the Interim Approval and
Procedures Order are as follows:
* Record Date is June 16, 2023 at 4:00 p.m. (prevailing Eastern
Time) (or such other date the Interim Approval and Procedures Order
is entered).
* Deadline to Object to Claims for Voting Purposes will be on
June 23, 2023.
* Deadline to Serve the Notices and the Solicitation Package
will be on June 23, 2023 (or within business days following entry
of the Interim Approval and Procedures Order).
* Deadline to File Rule 3018 Motions will be on July 10, 2023 at
4:00 (prevailing Eastern Time).
* Deadline to File Plan Supplement will be on July 21, 2023 at
4:00 p.m. (prevailing Eastern Time).
* Deadline for Claim Resolution Event will be on July 26, 2023.
* Voting Deadline will be on July 28, 2023 at 4:00 p.m.
(prevailing Eastern Time).
* Deadline to Object to Final Approval of the Disclosure
Statement and Confirmation of the Plan will be on July 28, 2023 at
4:00 p.m. (prevailing Eastern Time).
* Deadline for Debtor to File Voting Report will be on August 2,
2023 at 4:00 p.m. (prevailing Eastern Time).
* Deadline for Debtor to File Confirmation Brief and/or Reply to
any Plan or Disclosure Statement Objections will be on August 2,
2023 at 4:00 p.m. (prevailing Eastern Time).
* Combined Hearing on Final Approval of the Disclosure Statement
and Confirmation of the Plan will be on August 7, 2023 at 1:00 p.m.
(prevailing Eastern Time).
The Plan Proponents submit that the Disclosure Statement contains
adequate information as defined in Section 1125 of the Bankruptcy
Code. Accordingly, the Plan Proponents request that the Court
approve the Disclosure Statement (a) on an interim basis to permit
the Plan Proponents to use it in the solicitation process as
described herein; and (b) on a final basis at the Confirmation
Hearing as part of the order confirming the Plan.
Class 4 consists of the Sharity Trust Claim and the Unity Member
Class Claim. In connection with the Confirmation Hearing, the Plan
Proponents are seeking approval of an Unsecured Creditor Settlement
between the Debtors, the Creditors' Committee, the Sharity Trustee,
and the Unity Class Representatives, the terms of which are
contained in the Plan. In pertinent part, the Unsecured Creditors
Settlement allows the Unity Member Class Claim as an Unsecured
Claim in Class 4 in the amount of $297,903,437, and disallows all
other Claims against the Debtors by any Unity Members. Similarly,
the Sharity Trust is Allowed an Unsecured Claim in Class 4 in the
amount of $362,764,161.
Counsel for the Debtors:
Rachel B. Mersky, Esq.
MONZACK MERSKY AND BROWDER, P.A.
1201 Orange Street, Suite 400
Wilmington, DE 19801
Tel: (302) 656-8162
Fax: (302) 656-2769
E-mail: rmersky@monlaw.com
- and -
J. Robert Williamson
Matthew W. Levin
SCROGGINS & WILLIAMSON, P.C.
4401 Northside Parkway, Suite 450
Atlanta, GA 30327
Tel: (404) 893-3880
Fax: (404) 893-3886
E-mail: rwilliamson@swlawfirm.com
mlevin@swlawfirm.com
Counsel for the Committee:
Dennis A. Meloro, Esq.
GREENBERG TRAURIG, LLP
222 Delaware Avenue, Suite 1600
Wilmington, DE 19801
Tel: (302) 661-7000
E-mail: melorod@gtlaw.com
- and -
John D. Elrod, Esq.
GREENBERG TRAURIG, LLP
3333 Piedmont Road, NE, Suite 2500
Atlanta, GA 30305
Tel: (678) 553-2259
E-mail: elrodj@gtlaw.com
About Aliera Cos. Inc.
Aliera Cos. Inc. is focused on providing a full spectrum of
revolutionary options and services to a multitude of industries
that fit every need and budget. The company provides services to
support its subsidiaries which focus on the unique aspects of the
health care industry.
Plaintiffs in a case -- docketed as Hanna Albina and Austin
Willard, individually and on behalf of others similarly situated,
Plaintiffs, v. The Aliera Companies, Inc., Trinity Healthshare,
Inc. and Oneshare Health, LLC Unity Healthshare, LLC, Case No.
20-CV-00496, (E.D. Ky., Dec. 11, 2020) -- filed an involuntary
petition under Chapter 11 of the Bankruptcy Code against Aliera
(Bankr. D. Del. Case No. 21-11548) on Dec. 5, 2021.
Joseph H. Huston, Jr., Esq., of Stevens & Lee, P.C., is the
petitioners and plaintiffs' counsel.
On Dec. 21, 2021, Aliera filed a voluntary Chapter 11 petition
(Bankr. N.D. Ga. Case No. 21-59493), disclosing assets of $1
million to $10 million and liabilities of $500 million to $1
billion. Advevo LLC and three other Aliera affiliates -- Ensurian
Agency LLC, Tactic Edge Solutions LLC and USA Benefits &
Administrators LLC -- also filed voluntary Chapter 11 petitions on
Dec. 21, 2021.
On Jan. 25, 2022, the petitioning creditors obtained an order
granting their motion to transfer the voluntary Chapter 11 cases to
the Delaware Bankruptcy Court, which has been overseeing the
liquidation of Aliera's affiliated corporation, Trinity
Healthshare, Inc., now known as Sharity Ministries, Inc.
On Feb. 16, 2022, Judge John T. Dorsey of the Delaware Bankruptcy
Court ordered the consolidation of Aliera's voluntary Chapter 11
proceeding with the involuntary case filed by the petitioning
creditors (with Case No. 21-11548 being the surviving case number)
and terminated the company's voluntary proceeding.
Meanwhile, Judge Dorsey ordered the joint administration of the
involuntary proceeding and the four other voluntary cases filed by
the Aliera affiliates, with Case No. 21-11548 as the lead
bankruptcy case.
The Debtors tapped J. Robert Williamson, Esq., at Scroggins &
Williamson, P.C. and Monzack Mersky and Browder, PA as bankruptcy
counsels; SeatonHill Partners, LP as financial advisor; and Katie
Goodman, managing member of GGG Partners, LLC, as chief liquidation
officer. Epiq Corporate Restructuring, LLC is the claims and
noticing agent and administrative advisor.
The U.S. Trustee for Region 3 appointed an official committee of
unsecured creditors on Feb. 21, 2022. The committee is represented
by Greenberg Traurig, LLP.
ALLIED HEALTHCARE: Court OKs $4MM DIP Loan from Sterling
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The U.S. Bankruptcy Court for the Eastern District of Missouri,
Eastern Division, authorized Allied Healthcare Products, Inc. to
use cash collateral and obtain secured postpetition financing from
Sterling Commercial Credit, LLC on a final basis.
The Debtor is permitted to obtain postpetition financing in the
aggregate amount of $4 million.
Interest will accrue on all outstanding principal relating to
advances at 6.5% per annum above the Prime Rate from time to time
in effect, adjusted as of the date of any change in the Prime Rate,
but in no event less than 14% per annum.
The DIP Facility matures through the earlier of:
(a) the 120th after the Petition Date or, if such date is not
a Banking Business Day, the first Banking Business Day thereafter,
(b) any date on which the Lender accelerates the maturity of
the Loan and demands payment in full of the Obligations,
(c) the date upon which the Bankruptcy Case will be converted
to a case under chapter 7 of the Bankruptcy Code or dismissed;
(d) the effective date of a plan of reorganization for
Borrower which has been confirmed by an order of the Bankruptcy
Court;
(e) the date upon which any Authorizing Order will be amended,
supplemented, vacated or otherwise modified without the prior
written consent of the Lender;
(f) the date upon which the automatic stay expires; or
(g) the date of any agreement for the sale of substantially
all the assets of Borrower, unless such sale is approved by the
Lender, in which event, the date of consummation of the sale.
The Debtor is required to comply with these milestones:
(a) No later than five Business Banking Days after the
Petition Date, the Borrower will file a motion in form and
substance satisfactory to Lender requesting approval from the
Bankruptcy Court to conduct the marketing and sale process for all
or substantially all of the assets of Borrower; and
(b) No later than 30 days after the filing of the motion
required under the foregoing subsection (a), the Bankruptcy Court
will have entered an order such motion.
Failure to to comply with any Milestone constitutes an Event of
Default.
As of the Petition Date, the Debtor admits it is liable under a
Loan and Security Agreement with the Lender, dated effective
February 27, 2017, as amended, in the aggregate principal amount of
$2.5 million.
The Debtor requires the use of cash collateral and postpetition
financing to continue to operate its business in the ordinary
course.
As adequate protection, the Lender is granted:
a. a first priority, perfected senior security interest in
and lien upon all Post-Petition Collateral that is not otherwise
encumbered by a validly perfected security interest or lien on the
Petition Date;
b. a first priority, senior, priming, perfected security
interests in and lien upon all of the Debtor's right, title and
interest in, to and under the Post-Petition Collateral; and
c. a junior, perfected security interest in and lien upon
all Post-Petition Collateral which is already subject to a validly
perfected security interest or lien in existence as of the Petition
Date.
The events that constitute an "Event of Default" include:
(a) The Debtor fails in the payment or performance of any
obligation, covenant, agreement, or liability created by any of the
Loan Documents or the Debtor otherwise fails to comply with, or any
default occurs on. any term in any of the Loan Documents;
(b) Any representation, warranty, or financial statement made
by or on behalf of the Debtor in any of the Loan Documents, or any
document contemplated by the Loan Documents, is materially false or
materially misleading:
(c) Any indebtedness of the Debtor under any note, indenture,
contract, agreement, or undertaking is accelerated other than as a
result of the occurrence of the Petition Date;
(d) Default or an event which, with the passage of time or the
giving of notice or both, would constitute a default, by the
Debtor, occurs on any note, indenture, contract, agreement,
licensing agreement, or undertaking; and
(e) The Debtor is dissolved or substantially ceases business
operations.
A copy of the Court's order and the Debtor's budget is available at
https://urlcurt.com/u?l=VSSJ98 from PacerMonitor.com.
The Debtor projects total cash disbursements from operations, on a
weekly basis, as follows:
$329,000 for the week ending June 2, 2023;
$234,000 for the week ending June 9, 2023;
$290,000 for the week ending June 16, 2023;
$195,000 for the week ending June 23, 2023;
$286,000 for the week ending June 30, 2023.
About Allied Healthcare Products, Inc.
Allied Healthcare Products, Inc. is a manufacturer of AHP300
transport ventilator, carbon dioxide absorbent, suction regulators
& aspirators, ventilators, emergency products, and medical gas
systems.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Mo. Case No. 23-41607) on May 8, 2023.
In the petition signed by Akash Amin, president and chief
restructuring officer, the Debtor disclosed up to $50 million in
both assets and liabilities.
Judge Brian C. Walsh oversees the case.
Eric C. Peterson, Esq., at Spencer Fane LLP, represents the Debtor
as legal counsel.
ALPINE 4 HOLDINGS: Gets Additional Nasdaq Noncompliance Notice
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Alpine 4 Holdings, Inc. announced that it received an additional
staff determination notice from the Listing Qualifications
Department of The Nasdaq Stock Market LLC advising that Nasdaq had
not received the Company's Quarterly Report on Form 10-Q for the
quarterly period ended March 31, 2023, and that as such, the
Company was not in compliance with Nasdaq Listing Rule 5250(c)(1).
Alpine 4 has 60 calendar days from May 24, 2023, to submit to
Nasdaq a plan outlining its anticipated steps to regain compliance
with the Listing Rule. The Company intends to submit the plan
explaining the strategy to make the required SEC filings, and to
regain compliance with the Listing Rule.
The Company intends to file the Quarterly Report as soon as
practicable and will provide such information to Nasdaq as part of
the proposed plan.
About Alpine 4
Alpine 4 Holdings, Inc (formerly Alpine 4 Technologies, Ltd) is a
publicly traded conglomerate that is acquiring businesses that fit
into its disruptive DSF business model of drivers, stabilizers, and
facilitators.
Alpine 4 Holdings reported a net loss of $12.87 million for the
year ended Dec. 31, 2022, compared to a net loss of $19.48 million
for the year ended Dec. 31, 2021. As of Dec. 31, 2022, the Company
had $145.63 million in total assets, $75.64 million in total
liabilities, and $69.99 million in total stockholders' equity.
Phoenix, Arizona-based RSM US LLP, the Company's auditor since
2022, issued a "going concern" qualification in its report dated
May 5, 2023, citing that the Company has suffered recurring losses
from operations and recurring negative cash flows from operations.
This raises substantial doubt about the Company's ability to
continue as a going concern.
ARK LABORATORY: Court OKs Cash Collateral Access Thru June 8
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The U.S. Bankruptcy Court for the Eastern District of Michigan,
Southern Division, authorized Ark Laboratory, LLC to use cash
collateral of up to $3.2 million on an interim basis in accordance
with the budget, with a 5% variance, through June 8, 2023.
The Debtor requires the use of cash collateral to pay normal
operating expenses.
As previously reported by the Troubled Company Reporter, Comerica
Bank asserts that the Debtor owes it under a Master Revolving Note
executed by the Debtor on February 28, 2022, in the original
principal amount of $6.5 million. The indebtedness under the
Prepetition Revolving Note as of the Petition Date includes
principal of $6.4 million, interest of $23,360, plus accrued and
accruing interest, costs, fees and expenses.
The Bank asserts the Prepetition Indebtedness is secured by all of
the Debtor's assets.
The Debtor is also obligated to The Peninsula Fund VII Limited
Partnership under a Note Purchase Agreement and other loan and
collateral documents. Under a Senior Subordination Agreement dated
January 19, 2021, subject to the terms therein, the Bank's security
interest in the Prepetition Collateral is senior to the Subordinate
Lender's security interest in the same.
Under a Merchant Cash Advance Agreement dated March 10, 2023,
Diesel Funding LLC advanced funds to the Debtor characterized as a
purchase from the Debtor of certain future receivables.
As adequate protection, the Bank is granted a continuing and
replacement security interest and lien to the same extent, validity
and priority as existed on the Petition Date in all of the property
of the Debtor.
To the extent of any diminution in the value of the Subordinate
Lender's interest in its collateral, the Subordinate Lender is
granted a continuing and replacement security interest and lien in
all of the Collateral to the same extent, validity and priority as
existed on the Petition Date; provided, however, that the
Subordinate Lender's lien and interest in the Collateral under the
Order is junior to the Bank's liens and interests.
An evidentiary hearing on this matter is set in-person for June 8
at 11 a.m.
A copy of the order is available at https://urlcurt.com/u?l=PoL5ik
from PacerMonitor.com.
About Ark Laboratory, LLC
Ark Laboratory, LLC owns and operates a medical laboratory. The
Debtor sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. E.D. Mich. Case No. 23-43403) on April 12, 2023. In
the petition signed by James Grossi, its principal, the Debtor
disclosed up to $50 million in both assets and liabilities.
Judge Maria L. Oxholm oversees the case.
Robert N. Bassel, Esq., represents the Debtor as legal counsel.
ARRAY TECHNOLOGIES: S&P Alters Outlook to Pos., Affirms 'B' ICR
---------------------------------------------------------------
S&P Global Ratings revised its outlook on Array Technologies Inc.
to positive from stable and affirmed its 'B' issuer credit rating.
S&P said, "We also affirmed our 'B+' rating on Array's senior
secured debt. The recovery rating remains '2', reflecting our
expectation for meaningful recovery (70%-90%; rounded estimate:
75%) in the event of a default. We do not rate the company's
convertible notes.
"The positive outlook reflects our view that solid demand and
margin improvement will persist over the next year, which, coupled
with the company's robust backlog, will lead to S&P Global
Ratings-adjusted leverage below 5x.
"We forecast Array's credit measures to improve over the next 12
months driven by good demand and ongoing operational improvements.
We forecast S&P Global Ratings-adjusted leverage to improve to
below 5x in 2023, from 9.5x at the end of 2022, given solid demand
and the continuation of operational improvements that the company
implemented over the past several quarters. These improvements
included structural changes to the company's pricing strategy to
reduce exposure to future increases in commodity costs, as well as
cost reduction actions. Our forecast incorporates solid performance
in the first quarter, which was the company's highest quarterly
EBITDA figure in the past three years and represented roughly 65%
of total 2022 EBITDA." Growth in EBITDA resulted from 25%
year-over-year growth in revenue--driven by both price and
volume--in addition to adjusted EBITDA margin expansion of roughly
2,000 basis points (bps) as operating leverage, product mix, better
pricing, and lower logistic costs more than offset lingering,
albeit moderating, inflationary cost pressures. Additionally, the
company continued to generate free operating cash flow (FOCF) with
more than $30 million in the quarter as higher EBITDA more than
offset working capital headwinds. Top-line growth and margin
expansion led to trailing-12-month leverage of roughly 5.5x.
S&P said, "We expect year-over-year EBITDA margin expansion to
moderate through the remainder of 2023 since we anticipate a
less-favorable revenue mix. Nevertheless, we forecast 2023 S&P
Global Ratings-adjusted EBITDA margin in the low-teens percent
area, compared to the mid-single-digit percent area in 2022, since
we believe Array will maintain the price and cost actions it
implemented, and benefit from operating leverage. Further, while
Array's backlog has come down off record levels, the backlog as of
March 31, 2023, provides good visibility. We expect margin
improvement coupled with good revenue growth will result in a
further improvement in S&P Global Ratings-adjusted leverage to
below 5.0x in 2023."
Still, Array's operating performance has been volatile in recent
years and subject to regulatory headwinds and supply chain
disruptions.
Long-term demand trends remain strong despite near-term
uncertainties and possible lumpiness. S&P said, "We believe the
Inflation Reduction Act (IRA) will lead to solid revenue growth in
the next few years given the expected tax incentives that should
benefit Array's customers. Further, we expect solar as an alternate
form of energy will continue to grow globally over the next few
years. We believe Array's good position in the solar industry, its
robust backlog, and the long-term tailwind from the $1 trillion
U.S. Infrastructure Investment and Jobs Act (IIJA) will boost
demand for Array's products and services over the long run,
although the exact timing is uncertain."
S&P said, "In the near term, however, we believe Array will
experience some lumpiness in demand as its customers await and
digest details around the IRA tax incentives and other regulatory
obstacles, including tariffs and the Uyghur Forced Labor Prevent
Act (UFLPA). Array has already seen customer orders that it
expected to convert in 2023 pushed out to 2024. While some
performance bumps may occur in 2023 to accommodate customers'
requests to delay projects, we would expect these projects would be
executed on in 2024. As IRA incentives become clearer, the
potential for a large uplift in performance exists, although we do
not currently incorporate this in our base case.
"Further, while we do not anticipate a material impact to demand
from the UFLPA, documentation requirements to comply with the act
may lead to material shortages and therefore project delays.
Potential project delays may also stem from a higher for longer
interest rate environment, given Array's customer base is generally
reliant on debt-financing and is therefore interest-rate sensitive.
We do not, however, anticipate interest rates will have a material
impact on demand given expected tax incentives and because the most
recent quarter's performance showed signs of resiliency despite the
current financial market conditions.
"Array's liquidity position continues to improve. The company's
FOCF significantly improved in the first quarter of 2023 compared
to the first quarter of 2022, reflecting higher EBITDA and reduced
working capital outflows. We forecast Array's adjusted funds from
operations (FFO) to improve materially in 2023 given our forecast
for EBITDA growth. Nevertheless, we forecast FOCF to decline to $70
million to $90 million in 2023, from about $119 million in 2022.
The decline reflects expected incremental investments in working
capital and capital expenditures (capex) over the year to support
growth. While we anticipate greater working capital spend this
year, we note that in the past few quarters the company has
strengthened its working capital conversion cycle, particularly
around accounts-receivables collection rates. Further, FOCF should
be sufficient to fund dividends, required debt repayments, and
build further liquidity cushion, in addition to the $147.8 million
and ample revolver availability as of March 31, 2023.
"The positive outlook reflects our view that solid demand and
margin improvement will persist over the next year, which, coupled
with the company's robust backlog, will lead to adjusted leverage
below 5x."
S&P could revise the outlook to stable on Array over the next 12
months if the company's adjusted debt leverage remains above 5x
with weak FOCF.
This could occur if:
-- Project delays postpone the realization of revenue and earnings
beyond the next 12 months;
-- The company experiences significant setbacks in gross margin
from recent improvements; or
-- It is unable to generate consistent positive FOCF.
S&P may upgrade Array over the next 12 months if the company
maintains adjusted debt leverage below 5x and generates
consistently strong FOCF.
This could occur if:
-- The risk of project delays dissipates;
-- Gross margins remain at current levels and continue to improve;
or
-- The company demonstrates the ability to generate consistent
positive FOCF.
ESG credit indicators: E-1, S-2, G-2
S&P said, "Environmental factors are a positive consideration in
our credit rating analysis of Array Technologies Inc. The company's
position as a leading provider of tracker systems used in
commercial-scale solar energy generation projects will allow it to
benefit from customers' and investors' increased focus on ESG and
climate transition. The scope of its business is tied to favorable
trends in this transition. As such, we expect the company will
benefit from the favorable secular demand for renewable energy,
which we expect to surpass other energy industries and will grow to
6% of the total global energy generation mix, from 3% currently,
and will support increasing earnings and cash flow."
ART OF MEDICINE: Contribution & Continued Operation to Fund Plan
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Art of Medicine, P.A., filed with the U.S. Bankruptcy Court for the
Middle District of Florida a Plan of Reorganization dated June 1,
2023.
The Debtor is a Jacksonville based primary care/internal medicine
health care provider currently serving approximately 2,500 patients
under the care of the Debtor's founder and owner, Dr. Eduardo
Balbona.
In 2021, the Debtor was actively solicited by the sales staff of
BTL Industries, Inc., for the purchase/lease of medical equipment
from BTL. Based upon these assurances and representations, the
Debtor purchased two pieces of medical equipment from BTL in
December of 2021 (the EMSculpt and CelluTone) and another piece of
equipment in April of 2022 (the EmSella) (collectively, the
"Equipment") with financing secured by BTL through LeasePoint.
The Debtor subsequently fell behind on the payments, and LeasePoint
initiated a collection action against the Debtor and Dr. Balbona
concerning the EmSella. The Debtor filed this Chapter 11 case to
provide an orderly structure to reorganize its operations,
surrender the Equipment and preserve its ability to continue
provide its patients the best in personalized medical care.
Class 5 consists of General Unsecured Claims. Debtor will fund
payment to creditors in this class of creditors from a $30,000.00
Contribution (defined infra) provided to the Debtor from the
Debtor's owner Dr, Eduardo Balbona and his spouse Kathleen Balbona
(collectively, the "Balbonas"). The Contribution will be from the
Balbonas' own personal, exempt, assets and will be provided to the
Debtor within 30 days of the Effective Date.
Within 30 days of Debtor's receipt of the Contribution and final
court approval of any Administrative Claims in this case, the
Debtor will first use the Contribution to pay all approved and
final Administrative Claims in full, and then shall distribute the
remaining balance of the Contribution, pro rata, to all allowed
holders of General Unsecured Claims under Class 5 in full
satisfaction of their Claims. This Class is impaired.
Class 6 consists of Equity Interest. All equity interests of the
equity holders in the Debtor shall be retained, and all rights and
privileges of the members, owners and holders of the equity
interests shall remain unaltered. Class 6 is unimpaired.
Given the refined debt service as provided in this Plan, the Debtor
will continue its operations which will cover the required new debt
service payments.
Despite the negative Net Income After Debt Service, the Debtor
contends the Plan remains feasible due to the Debtor's cash
position of approximately $71,000 as of the Petition Date which
will allow the Debtor to cover this minimal shortfall while it
restructures its operations in light of surrendering the
Equipment.
In addition, the Balbonas have agreed to supply the Debtor with
$30,000.00 to fund this Plan (the "Contribution"). The Contribution
will be from the Balbonas' own personal, exempt, assets and will be
provided to the Debtor within 30 days of the Effective Date. Within
30 days of receipt of the Contribution by the Debtor and final
court approval/determination of any Administrative Claims in this
case (whichever may come later), the Debtor will use the
Contribution to first pay all approved and final Administrative
Claims in full, and then shall distribute the remaining balance of
the Contribution, pro rata, to all allowed holders of General
Unsecured Claims under Class 2.
A full-text copy of the Plan of Reorganization dated June 1, 2023
is available at https://urlcurt.com/u?l=xT7i34 from
PacerMonitor.com at no charge.
Attorney for the Debtor:
LANSING ROY, P.A.
Kevin B. Paysinger, Esq.
William B. McDaniel, Esq.
1710 Shadowood Lane, Suite 210
Jacksonville, FL 32207
(904) 391-0030
About Art of Medicine, P.A.
Art of Medicine, P.A. is a Jacksonville, Florida based primary care
/ internal medicine health care provider currently serving
approximately 2,500 patients under the care of the Debtor's founder
and owner, Dr. Eduardo Balbona.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 3:23-bk-01270) on June
1, 2023. In the petition signed by Eduardo Jose Balbona, director,
the Debtor disclosed up to $500,000 in assets and up to $10 million
in liabilities.
William B. McDaniel, Esq., at Lansing Roy PA, represents the Debtor
as legal counsel.
BED BATH & BEYOND: Potential Bidders Emerge; Creditors Reach Deal
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Jennifer Marks of Home Textiles Today reports that as Bed Bath &
Beyond's dissolution winds to a close, potential bidders are eyeing
its remains.
While no party has yet emerged to keep the core BBB retail business
going, buybuy Baby could live to see another day, according to a
report from CNBC.
Investment banking firm Ankura Capital Advisors is reportedly
working with an unnamed bidder interested in acquiring the baby
business and keeping some of its stores in operation. BBB was
operating 120 buybuy Baby stores when it declared bankruptcy in
April and announced it would begin closing all of the company's
stores.
DTC baby registry Babylist is also interested in buybuy Baby, but
is looking at the operations trademark and domain rather than its
physical stores. The company generated $290 million in revenue in
2022 and claims to lead the $88 billion baby products market.
Similarly, sources told CNBC that a few parties are considering Bed
Bath & Beyond's digital assets.
The Bed Bath & Beyond auction, originally set for June 1, has been
pushed back to June 16. Bids are being accepted through June 14.
During a May 31 meeting in the New Jersey bankruptcy court, Bed
Bath's legal counsel stated that the company is "actively engaged
with a number of interested parties" or its assets, according to a
Law 360 report.
During the same meeting, Bed Bath's unsecured creditors informed
the court that they have reached a preliminary agreement for a
settlement. The deal is being worked out with the providers of the
retailers’ $240 million bankruptcy package, which includes
debtor-in-possession financing as well as a term loan facility.
Law 360 reported that specifics of the agreement were not
disclosed.
About Bed Bath & Beyond
Bed Bath & Beyond Inc., together with its subsidiaries, is an
omnichannel retailer selling a wide assortment of merchandise in
the Home, Baby, Beauty & Wellness markets and operates under the
names Bed Bath & Beyond, buybuy BABY, and Harmon, Harmon Face
Values. The Company also operates Decorist, an online interior
design platform that provides personalized home design services.
At its peak, Bed Bath & Beyond operated the largest home furnishing
retailer in the United States with over 970 stores across all 50
states, consistently at the forefront of major home and bath
trends. Operating stores spanning the United States, Canada,
Mexico, and Puerto Rico, Bed Bath & Beyond offers everything from
bed linens to cookware to electric appliances, home organization,
baby care, and more.
Bed Bath & Beyond closed over 430 locations across the United
States and Canada before filing chapter 11 cases, implementing full
scale winddowns of their Canadian business and the Harmon branded
stores.
Left with 360 Bed Bath & Beyond and 120 buybuy BABY stores, Bed
Bath & Beyond Inc. and 73 affiliated debtors on April 23, 2023,
each filed a voluntary petition for relief under Chapter 11 of the
United States Bankruptcy Code to pursue a wind down of operations.
The cases are pending before the Honorable Vincent F. Papalia and
have requested joint administration of the cases under Bankr.
D.N.J. Lead Case No. 23-13359.
Kirkland & Ellis LLP and Cole Schotz P.C. are serving as legal
counsel, Lazard Frares & Co. LLC is serving as investment banker,
and AlixPartners LLP is serving as financial advisor. Bed Bath &
Beyond Inc. has retained Hilco Merchant Resources LLC to assist
with inventory sales. Kroll LLC is the claims agent.
BENEFYTT TECHNOLOGIES: In Chapter 11 to Split Into Two Companies
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Benefytt Technologies, Inc., et al., filed for Chapter 11
protection to pursue a balance-sheet restructuring that will let
sponsor Madison Dearborn Partners, LLC, retain control of the
operating company.
Founded in 2008, Benefytt is a health insurance technology company
that markets and sells Medicare and private health insurance
products, agent technology systems, and insurance policy
administration platforms. Today, Benefytt has approximately 855
employees, operates in 44 states, and has the scale, resources, and
technology to offer a fully-integrated insurance distribution
platform.
CFO Michael DeVries explains that Benefytt commenced chapter 11
cases to implement a comprehensive balance sheet restructuring
supported by 100 percent of its term lenders and 60 percent of its
revolving lenders, and with a fully committed $35 million
debtor-in-possession credit facility (the "DIP Facility" from its
existing equity sponsor, Madison Dearborn Partners, LLC (the
"Sponsor"), and certain co-investors.
This restructuring is the product of months of intensive
negotiations between Benefytt, its lenders, and the Sponsor and
will result in going concern enterprise with a substantially
deleveraged operating company supported by approximately $64
million in new capital committed by the Sponsor and its
co-investors.
This restructuring is the only option available to Benefytt that
avoids an immediate liquidation and that allows Benefytt to emerge
ahead of the annual Enrollment Period opening in October -- a
critical window that will shape the Company's 2024 performance.
Benefytt and its lenders discussed numerous alternatives over the
last several months, many of which would have resulted in immediate
shutdown of the business (while the lenders recovered over time
from
existing contract income). Benefytt and the Sponsor continue to
believe in Benefytt's future success and so, to avoid a shut down,
negotiated a transaction whereby the Sponsor and certain
co-investors have agreed to provide approximately $64 million
(inclusive of the $35 million DIP Facility) to fund a portion of
the costs of the administration of these chapter 11 cases and go-
forward operating costs.
At the conclusion of these chapter 11 cases, Benefytt will split
into two companies: an operating company ("OpCo") and cash flow
company ("CFCo") (with the latter owning existing contract assets
and related income streams, among other assets). Benefytt's
lenders will own CFCo and collect contract income over time, while
the Sponsor and certain co-investors will acquire the operating
assets in OpCo through a credit bid of a portion of their secured
claims under the DIP Facility.
In parallel, with the assistance of their investment banker,
Jefferies LLC, Benefytt is pursuing a marketing process to
determine if any potential purchaser is willing to provider higher
or better value for some or all of Benefytt's assets.
Benefytt requires immediate access to DIP Financing to fund the
$3.6 million in payroll and other operating costs expected to be
paid this week. While Benefytt will continue to explore whether
higher or better alternatives exist, there is no alternative today
that avoids an immediate winddown.
Benefytt, the Sponsor, and the lenders did explore implementing a
restructuring on an out-of-court basis, but ultimately addressing
liabilities in a comprehensive manner through this chapter 11
process was necessary to reach an economic deal acceptable to all
parties. Further, under the terms of Benefytt's restructuring,
unsecured creditors will receive value from Benefytt's existing
contracts (i.e., the post-emergence cash flow company) after
secured
lenders have recovered in full.
"Ultimately, I believe this restructuring is the best—and
only—option to maximize the value of Benefytt's business, will
result in a transformative restructuring that enjoys broad secured
lender support, and treats all stakeholders fairly. Accordingly,
Benefytt intends to proceed swiftly through this chapter 11 process
consistent with the milestones set forth in the Restructuring
Support Agreement," CFO Michael DeVries said in court filings.
$600M in Debt
As of the Petition Date, Benefytt has approximately $606 million in
total funded debt obligations outstanding:
* $100 million outstanding under a Revolving Facility slated to
mature Aug. 12, 2026;
* $417 million outstanding under a Term Loan Facility set to
mature Aug. 12, 2027; and
* $89 million outstanding under a Delayed Draw Facility set to
mature Aug. 12, 2027.
Restructuring Support Agreement
Benefytt, with the assistance of its advisors, commenced an
outreach to its primary stakeholders—the Sponsor and the Ad Hoc
Group—regarding the terms of a potential restructuring
transaction. Benefytt provided the Ad Hoc Group (and later the
revolving credit facility agent) with access to significant
diligence and held numerous virtual diligence sessions and
telephone conferences with the Sponsor, the lenders, and their
advisors.
Though the Company continued to rigorously diligence all potential
restructuring transactions, as discussions progressed it became
clear that a Sponsor-led proposal was the only available
alternative under the circumstances to stave off liquidation and
that an in-court process would be necessary to address certain
contingent and other legacy liabilities and to preserve the value
of Benefytt's business.
The Sponsor and the Ad Hoc Group reached an agreement in principle
on April 24, 2023, and all parties subsequently worked
expeditiously to document the deal and prepare for these chapter 11
proceedings.
The Restructuring Support Agreement represents a significant
achievement for Benefytt and is a testament to the Sponsor's
continued belief in the strength of Benefytt's business.
The RSA contemplates a fresh start for the Debtors' operations,
provides the Company with a viable path to a swift reorganization
that will allow Benefytt to continue as a going concern, and
provides a path to adequately address the Debtors' outstanding
obligations to their secured lenders.
The sale of certain of Benefytt's operating assets through a "DIP
to credit bid" acquisition is at the center of the restructuring
transactions contemplated by the Restructuring Support Agreement.
Under the Restructuring Support Agreement, the Sponsor and certain
other co-investors have agreed to finance the DIP Facility to fund
the Debtors' operations during the chapter 11 cases. The Sponsor
and the co-investors -- through the entity serving as the DIP
Lender
under the DIP Facility -- will credit bid a portion of its claims
under the DIP Facility to acquire all of the operating assets of
Benefytt, excluding certain contract assets and intellectual
property assets, and hold such assets in the new operating company.
Following emergence, 92.5 percent of the common equity interests
of the new operating company will be owned by the DIP Lender and
certain of its co-investors, with the remaining 7.5 percent of
common equity interests of the new operating company owned by CFCo.
The non-acquired contract assets will be held in the cash flow
company, which will own existing contract assets that will run off
over time and provide cash distributions to Benefytt's secured
lenders and, if there are sufficient funds, other unsecured
creditors.
The Restructuring Support Agreement also contemplates entry into a
servicing agreement, pursuant to which the new operating company
will provide operational support to the cash flow company.
To ensure that the transactions contemplated by the Restructuring
Support Agreement reflect the value-maximizing path-forward for the
Company, Jefferies will conduct a broad "market check" to solicit
proposals for the sale of all of the Debtors' assets. Jefferies
will continue its marketing efforts during these chapter 11 cases
to ensure that the Company pursues the best transaction available
for its stakeholders.
To date, the Restructuring Support Agreement represents the only
proposal that avoids a value-destructive winddown of the Company.
Over the past several months, the Debtors' board of directors (the
"Board") has met on a near weekly basis (and at times more
frequently) to receive updates and advice from Benefytt's advisors
regarding potential alternatives. Following its analysis, the
Board has determined that entering into the RSA and commencing the
chapter 11 cases represents the best and only path forward for the
Company at this time. The commencement of the chapter 11 cases is
the final step in the Company's efforts to position its business
for future success and realize the results of its operational
initiatives. The Company, and the Sponsor, believe in the future
of this business. Ultimately, these chapter 11 cases will provide
Benefytt with a fresh start and allow Benefytt to continue to
provide millions of Americans with tools to better access and
navigate the insurance market.
Proposed Timelines
The transactions contemplated by the Restructuring Support
Agreement will be memorialized in a chapter 11 plan of
reorganization to be filed by the Debtors in the coming days (the
"Plan"). Following filing of its chapter 11 plan and related
disclosure statement, the Debtors plan to proceed efficiently
through these cases in accordance with the milestones contemplated
by the Restructuring Support Agreement. These milestones include:
* entry of an interim order approving entry of the DIP Facility,
within three days of the Petition Date;
* entry of a final order approving entry of the DIP Facility,
within 35 days of the Petition Date;
* approval of the disclosure statement relating to the Plan
within 45 days of
the Petition Date;
* entry of an order confirming the Plan within 105 days of the
Petition Date; and
* occurrence of the Plan's effective date within 135 days of the
Petition Date.
Even setting aside the above Milestones, the Debtors simply cannot
afford to move at a slower pace than is contemplated by the RSA.
To capitalize on the proposed restructuring and position the
Company for post-reorganization success, Benefytt must emerge from
these chapter 11 cases as far in advance as possible from the
commencement of the 2024 Enrollment Period in October 2023.
Benefytt operates in a competitive market—partnering with
carriers and attracting customers with the overhang of the chapter
11 proceedings poses additional challenges and risks customers
choosing alternative service providers.
Moreover, as recently as the past several weeks, Benefytt was
seriously considering a wind down that would have resulted in
significantly less overall value to Benefytt's stakeholders than
the transactions in the Restructuring Support Agreement. While
Benefytt is pleased to have achieved consensus around a
comprehensive restructuring, in doing so it struck a potentially
fragile
balance between the competing concerns of its various stakeholder
groups. To preserve that balance and maximize value for all
stakeholders, it is incumbent upon Benefytt to proceed through the
cases efficiently.
About Benefytt Technologies
Benefytt Technologies, Inc., et al., are a technology-driven
distributor of insurance products covering Medicare-related
insurance plans as well as other types of health insurance and
supplemental products that operate in 44 states including Texas,
New York, California, and Florida.
On May 23, 2023, Benefytt Technologies, Inc., and 17 affiliated
debtors, including American Service Insurance Agency LLC, filed
voluntary petitions for relief under Chapter 11 of the United
States Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 23-90566).
Benefytt Technologies disclosed assets of $1 billion to $10 billion
and liabilities of $500 million to $1 billion as of the bankruptcy
filing.
The Debtors tapped KIRKLAND & ELLIS LLP as general bankruptcy
counsel; JACKSON WALKER LLP as local bankruptcy counsel; ANKURA
CONSULTING, LLC, as restructuring advisor; and JEFFERIES GROUP LLC
as financial advisor. STRETTO, INC., is the claims agent.
BINION CREEK: Case Summary & One Unsecured Creditor
---------------------------------------------------
Debtor: Binion Creek Reserves, LLC
160 Lookout Ridge
Georgetown, TX 78626
Business Description: The Debtor is a Single Asset Real Estate (as
defined in 11 U.S.C. Section 101(51B)).
Chapter 11 Petition Date: June 5, 2023
Court: United States Bankruptcy Court
Western District of Texas
Case No.: 23-10397
Debtor's Counsel: Todd Headden, Esq.
HAYWARD PLLC
7600 Burnet Road, Suite 530
Austin TX 78757
Tel: (737) 881-7100
Email: theadden@haywardfirm.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Drew G. Hall as executive vice
president.
The Debtor listed Lampasas County Appraisal District as its only
unsecured creditor holding a claim of $2,665.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/QL2OAYQ/Binion_Creek_Reserves_LLC__txwbke-23-10397__0001.0.pdf?mcid=tGE4TAMA
BLUE STAR: Issues $1.2M Convertible Promissory Note to Lind Global
------------------------------------------------------------------
Blue Star Foods Corp. entered into a securities purchase agreement
with Lind Global Fund II LP, pursuant to which the Company issued
to the Investor a secured, two-year, interest free convertible
promissory note in the principal amount of $1,200,000 and a common
stock purchase warrant to acquire 8,700,696 shares of common stock
of the Company, for the aggregate funding amount of $1,000,000. In
connection with the issuance of the Note and the Warrant, the
Company paid a $50,000 commitment fee to the Investor. The
proceeds from the sale of the Note and Warrant are for general
working capital.
Previously, on Jan. 24, 2022, the Company issued to the Investor a
secured, two-year, interest free convertible promissory note in the
principal amount of $5,750,000. In connection with the issuance of
the 2022 Note, the Company granted the Investor a first priority
security interest and lien upon all of its assets, including a
pledge on its shares in John Keeler & Co. Inc., pursuant to the
Security Agreement dated as of Jan. 24, 2022 by and between the
Company and the Investor. In connection with the issuance of the
Note, the Company and the Investor amended the 2022 Security
Agreement to include the Note, pursuant to the Amended and Restated
Security Agreement dated as of May 30, 2023 by and between the
Company and the Investor.
The Company agreed to file a registration statement with the
Securities and Exchange Commission covering the resale of all of
the shares of common stock issuable to the Investor pursuant to the
Note and Warrant. If the registration statement is not declared
effective after 90 days following the closing date of this
transaction, the Note shall be in default. The Investor was also
granted piggyback registration rights.
If the Company engages in capital raising transactions, the
Investor has the right to purchase up to 20% of the new securities
for 24 months.
The Note is convertible into common stock of the Company at any
time after the earlier of 90 days from issuance or the date the
registration statement is effective, provided that no such
conversion may be made that would result in beneficial ownership by
the Investor and its affiliates of more than 4.99% of the Company's
outstanding shares of common stock. The conversion price of the
Note is equal to the lesser of: (i) US$0.12; or (ii) 90% of the
lowest single VWAP during the 20 trading day period ending on the
last trading day immediately preceding the applicable conversion
date, subject to customary adjustments. The maximum number of
shares of common stock to be issued in connection with the
conversion of the Note and the exercise of the Warrant, in the
aggregate, will not, without the prior approval of the shareholders
of the Company, exceed a number of shares equal to 19.9% of the
outstanding shares of common stock of the Company immediately prior
to the date of the Note, per Nasdaq rules and guidance.
The Note contains certain negative covenants, including restricting
the Company from certain distributions, stock repurchases,
borrowing, sale of assets, loans and exchange offers.
Upon the occurrence of an event of default as described in the
Note, the Note will become immediately due and payable at a default
interest rate of 120% of the then outstanding principal amount of
the Note. Events of default include a change of control, a default
in any indebtedness in excess of $100,000, the failure of the
Company to instruct its transfer agent to issue unlegended
certificates, the shares no longer publicly being traded, if after
the applicable time the shares are not available for immediate
resale under Rule 144 and the Company's market capitalization is
below $2.5 million for 10 days.
The Warrant entitles the Investor to purchase up to 8,700,696
shares of common stock of the Company during the exercise period
commencing on the date that is six months after the issue date and
ending on the date that is 60 months from the Exercise Period
Commencement at an exercise price of $0.1227 per share, subject to
customary adjustments. The Warrant includes cashless exercise and
full ratchet anti-dilution provisions.
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: Receives Noncompliance Notice From Nasdaq
----------------------------------------------------
Blue Star Foods Corp. received a written notification from the
Listing Qualifications Staff of the Nasdaq Stock Market LLC,
notifying the Company that based on the Company's stockholders'
equity of $479,238 as reported in the Company's Quarterly Report on
Form 10-Q for the quarter ended March 31, 2023 as filed with the
Securities and Exchange Commission, the Company is no longer in
compliance with the minimum stockholders' equity requirement for
continued inclusion on the Nasdaq Capital Market under Nasdaq
Listing Rule 5550(b)(1), which matter serves as an additional basis
for delisting the Company's securities from Nasdaq. In addition,
the Notice informed the Company that, as of May 22, 2023, it did
not meet the alternative compliance standards relating to the
market value of listed securities or net income from continuing
operations.
On May 22, 2023, the Company requested a hearing before the Nasdaq
Hearings Panel, at which hearing on June 29, 2023, the Company will
provide its plan to regain compliance with the minimum bid price
requirement in Nasdaq Listing Rule 5550(a)(2) for continued listing
on The Nasdaq Capital Market. In addition, the Notice informs the
Company that the Panel will consider the Stockholders' Equity
Requirement matter in rendering a determination regarding the
Company's continued listing on The Nasdaq Capital Market. Pursuant
to Listing Rule 5810(d), the Company plans to present its plan to
regain compliance with respect to the Stockholders' Equity
Requirement deficiency at its Panel hearing on June 29, 2023.
The Company is presently evaluating potential actions to regain
compliance with all applicable requirements and intends to timely
submit a plan to Nasdaq to regain compliance with the Stockholders'
Equity Requirement. Although the Company believes it will be able
to regain compliance, there can be no assurance the Company's plan
will be accepted by Nasdaq or that if it is, the Company will be
able to regain compliance with the Stockholder's Equity
Requirement, the Alternative Compliance Standards, or will
otherwise be in compliance with other Nasdaq Listing Rules.
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.
BRBRSHY INVESTMENTS: Voluntary Chapter 11 Case Summary
------------------------------------------------------
Debtor: BRBRSHY Investments Inc
1111 S Roop St
Carson City, NV 89702
Chapter 11 Petition Date: June 5, 2023
Court: United States Bankruptcy Court
Northern District of Georgia
Case No.: 23-10654
Debtor's Counsel: Cameron M. McCord, Esq.
JONES & WALDEN, LLC
699 Piedmont Avenue NE
Atlanta, GA 30308
Tel: 404-564-9300
Fax: 404-564-9301
Email: info@joneswalden.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Rick Bryan as president.
The Debtor stated it has no creditors holding unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/XAFVPDQ/BRBRSHY_Investments_Inc__ganbke-23-10654__0001.0.pdf?mcid=tGE4TAMA
BSI 254 WESTFIELD: Involuntary Chapter 11 Case Summary
------------------------------------------------------
Alleged Debtor: BSI 254 Westfield, LLC
296 Mason Terrace
Brookline, MA 02446
Involuntary Chapter
11 Petition Date: June 5, 2023
Court: United States Bankruptcy Court
District of Massachusetts
Case No.: 23-10884
Judge: Hon. Christopher J. Panos
Petitioners' Counsel: Not Specified
A full-text copy of the Involuntary Petition is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/RJZHAMI/BSI_254_Westfield_LLC__mabke-23-10884__0001.0.pdf?mcid=tGE4TAMA
Alleged creditors who signed the petition:
Petitioner Nature of Claim Claim Amount
Nicholas Fiorillo Debt $120,000
3 Kales Way
Harwich Port MA 02646
Eric Appleton Debt $40,000
70 Winter Street
Worcester, MA
Roberto Batista Debt $4,122
107 Farm Street
Bellingham, MA 02019
Ocean Development Partners, LLC (RI) Debt $122,222
47 Wood Avenue, Ste. 2
Barrington RI 02806
Ocean Vacations, LLC Debt $122,222
3 Kales Way
Harwich Port MA 02646
Fiorillo Family Revocable Trust Debt $122,222
3 Kales Way
Harwich Port MA 02646
BUCKHEAD PROPERTY: Case Summary & Three Unsecured Creditors
-----------------------------------------------------------
Debtor: Buckhead Property Development, LLC
111 Sweetgum
Milledgeville GA 31061
Chapter 11 Petition Date: June 5, 2023
Court: United States Bankruptcy Court
Middle District of Georgia
Case No.: 23-50755
Debtor's Counsel: William Rountree, Esq.
ROUNTREE, LEITMAN, KLEIN & GEER, LLC
2987 Clairmont Road Suite 350
Atlanta, GA 30329
Tel: 404-584-1238
Email: wrountree@rlkglaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Lloyd Dominick as sole member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's three unsecured creditors is available for
free at PacerMonitor.com at:
https://www.pacermonitor.com/view/R55MQCY/Buckhead_Property_Development__gambke-23-50755__0001.0.pdf?mcid=tGE4TAMA
CARING HANDS: Seeks Cash Collateral Access
------------------------------------------
Caring Hands Home Care, Inc. asks the U.S. Bankruptcy Court for the
District of Minnesota for interim authority to use cash collateral
and provide adequate protection.
The Debtor seeks access to cash collateral on an interim basis
through June 30, 2023, and on a final basis through September 30,
2023.
The Debtor requires the use of cash collateral to purchase
supplies, compensate its employees and provide employee benefits,
pay promotional expenses and satisfy utility costs.
The Debtor's monthly gross revenues are projected to remain steady
in the range of $70,000 - $90,000 through September 30, with
accounts receivable 90 days or less to remain in the current range.
The Internal Revenue Service is the only secured creditor. The
Debtor believes the current debt owed to the IRS is $178,409.
Notice of the current federal tax liens were filed with the
Minnesota Secretary of State on September 19, 2022, November 18,
2022, January 9, 2022 and March 27, 2023.
As adequate protection for the use of cash collateral, the Debtor
proposes to grant the existing secured creditors a replacement lien
of the same validity, priority and effect as their pre-petition
lien. As further adequate protection, the Debtor will pledge to
operate its business in the ordinary course and in a manner that
will cash collateral to increase as provided in its projections.
A hearing on the matter is set for June 8, 2023 at 9 a.m.
A copy of the motion is available at https://urlcurt.com/u?l=y2vRbB
from PacerMonitor.com.
The Debtor projects total expenses, on a monthly basis, as
follows:
$60,291 for June 2023;
$63,036 for July 2023;
$64,648 for August 2023;
$77,792 for September 2023; and
$60,192 for October 2023.
About Caring Hands Home Care, Inc.
Caring Hands Home Care, Inc. sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D. Minn. Case No. 23-60214) on May
30, 2023. In the petition signed by Gary Johnson, president, the
Debtor disclosed up to $100,000 in assets and up to $500,000 in
liabilities.
Ahlgren Law Office, PLLC, represents the Debtor as legal counsel.
Caring Hands Home Care, Inc., has operated a home health care
agency since 1994 and is licensed by the Minnesota Department of
Human Services. The Debtor previously filed a voluntary Chapter 11
bankruptcy petition (Bankr. D. Minn. Case No. 17-60044) on Jan. 27,
2017. It was represented by Erik A Ahlgren, Esq. --
erikahlgren@charter.net -- at Ahlgren Law Office in the 2017 case.
CEDIPROF INC: Chapter 11 Plan Delayed by Lannett Bankruptcy
-----------------------------------------------------------
Judge Maria De Los Angeles Gonzalez of the U.S. Bankruptcy Court
for the District of Puerto Rico extended Cediprof, Inc.'s exclusive
period to file its plan of reorganization and disclosure statement
to July 3, 2023. The Court said the Debtor's exclusive period to
solicit acceptances of a plan is extended for a term of 60 days
after the order approving the disclosure statement is entered.
This is the Debtor's second request for extension of its
exclusivity periods. The Court previously granted the Debtor until
May 4 to file the disclosure statement and plan, and a term of 60
days after the approval of the disclosure statement to procure plan
votes.
As reported by the Troubled Company Reporter, the Debtor stated it
already has a draft of the disclosure statement and plan that has
been approved by its board of directors. The draft plan
contemplates, as part of the treatment of Sandoz, Inc.'s claim on
account of an arbitration award in AAA Case No. 01-20-00010-0588,
the indemnification by Lannett Company, Inc. of a portion of the
arbitration award amounting to $10,945,819, which is for profit
loss damages due to the early termination of a distribution
agreement. The plan also contemplates the revenue generated by the
distribution agreement executed with Lannett, a generic drug maker,
as part of the means to fund the plan.
However, Lannett has commenced a pre-packed Chapter 11 bankruptcy.
The Debtor is concerned that this course of action by Lannett,
which was unknown by the Debtor, may impact the terms the Debtor
contemplates in its disclosure statement and plan.
The Debtor said it needs time to discuss with both Lannett and
Sandoz the implications of Lannett's Chapter 11 petition and the
impact the petition may have on both, the claim held by the Debtor
against Lannett under their Indemnification Agreement, as well as
the assumption and/or rejection by Lannett of the distribution
agreement with the Debtor.
About Cediprof Inc.
Cediprof, Inc. is a company in Caguas, P.R., which develops,
manufactures, supplies and distributes finished dosage forms of
pharmaceutical products.
Cediprof filed its voluntary petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. D.P.R. Case No. 22-03198) on Nov. 4,
2022, with $10 million to $50 million in both assets and
liabilities.
Carmen D. Conde Torres, Esq., at the Law Offices of C. Conde &
Assoc. and RSM Puerto Rico as legal counsel and accountant,
respectively.
CERTIFIED 360: Seeks to Hire William Haeberle as Accountant
-----------------------------------------------------------
Certified 360, LLC seeks approval from the U.S. Bankruptcy Court
for the Middle District of Florida to employ William Haeberle, a
certified public accountant practicing in Jacksonville, Fla.
Mr. Haeberle agreed to prepare the Debtor's monthly operating
reports for a monthly fee of $200.
The retainer fee is $1,500.
Mr. Haeberle disclosed in a court filing that he is a
"disinterested person" pursuant to Section 101(14) of the
Bankruptcy Code.
Mr. Haeberle holds office at:
William G. Haeberle, CPA
4446-1 A Hendricks Ave., #245
Jacksonville, FL 32207
About Certified 360
Certified 360, LLC is a company in Jacksonville, Fla., which
operates in the construction industry.
Certified 360 filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. M.D. Fla. Case No. 23-01002) on May 4,
2023, with $528,466 in assets and $1,598,966 in liabilities.
Jerrett McConnell, Esq., at McConnell Law Group, PA has been
appointed as Subchapter V trustee.
Judge Jacob A. Brown oversees the case.
The Debtor tapped Bryan K. Mickler, Esq., at the Law Offices of
Mickler & Mickler, LLP as bankruptcy counsel and William Haeberle,
CPA as accountant.
CHRISTMAS TREE SHOPS: Rent Payment Escrow Okayed
------------------------------------------------
Rick Archer of Law360 reports that Christmas Tree Shops got final
approval Wednesday, May 24, 2023, from a Delaware bankruptcy judge
to take out $45 million in Chapter 11 financing after resolving
objections from landlords concerned the retail chain had not
budgeted enough cash to pay its rent.
About Christmas Tree Shops
Christmas Tree Shops is a home-decor retailer that was spun off
from Bed Bath & Beyond in 2020.
Christmas Tree Shops Inc. sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Del. Case No. 23-10576) on May 5,
2023. In its petition, the Debtor reports between $50 million and
$100 million in assets and between $100 million and $500 million in
debt.
The Debtor's counsel:
Evelyn J. Meltzer
Troutman Pepper Hamilton Sanders, LLP
302-777-6500
evelyn.meltzer@troutman.com
CHURCHILL ORTHOPEDIC: Case Summary & 20 Top Unsecured Creditors
---------------------------------------------------------------
Debtor: Churchill Orthopedic Rehabilitation, LLC
1086 Teaneck Road, Suite 3-E
Teaneck, NJ 07666-4855
Chapter 11 Petition Date: June 5, 2023
Court: United States Bankruptcy Court
District of New Jersey
Case No.: 23-14874
Debtor's Counsel: Kenneth L. Baum, Esq.
LAW OFFICES OF KENNETH L. BAUM LLC
201 W. Passaic Street
Suite 104
Rochelle Park, NJ 07662
Tel: (201) 853-3030
Fax: (201) 584-0297
Email: kbaum@kenbaumdebtsolutions.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Stephen Churchill 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/NPHU3SY/Churchill_Orthopedic_Rehabilitation__njbke-23-14874__0001.0.pdf?mcid=tGE4TAMA
CLAUSEN OYSTERS: Court OKs Cash Collateral Access Thru June 21
--------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Oregon authorized
Clausen Oysters, LLC to use $69,180 of cash collateral on an
interim basis in accordance with the budget, with a 10% variance,
through June 21, 2023.
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.
As adequate protection, the secured creditors are granted 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.
The Lien Creditors' interests in the Replacement Collateral will
have the same relative priorities as the liens held by them as of
the Petition Date.
The Replacement Lien on the Replacement Collateral will be
perfected and enforceable upon entry of the Order without regard to
whether such Replacement Lien is perfected under applicable
non-bankruptcy law.
The Replacement Lien granted will be a valid, perfected and
enforceable security interest and lien on the property of the
Debtor and the Debtor's estate without further filing or recording
of any document or instrument or any other action, but only to the
extent of the enforceability of the Lien Creditors' security
interests in the Prepetition Collateral.
A copy of the Court's order and the Debtor's budget is available at
https://urlcurt.com/u?l=jcXgm6 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.
CLAUSEN OYSTERS: Geoffrey Groshong Named Subchapter V Trustee
-------------------------------------------------------------
The Acting U.S. Trustee for Region 18 appointed Geoffrey Groshong
as Subchapter V trustee for Clausen Oysters, LLC.
Mr. Groshong will be paid an hourly fee of $400 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Groshong declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Geoffrey Groshong
600 Stewart Street, Suite 1300
Seattle, WA 98101
Phone: 206.508.0585
Email: trustee@groshonglaw.com
About Clausen Oysters
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,
with $1 million to $10 million in both assets and liabilities. Seth
Silverman, manager, signed the petition.
Thomas M. Renn oversees the case.
Nicholas J. Henderson, Esq., at Motschenbacher & Blattner, LLP
represents the Debtor as legal counsel.
CLEAR CHOICE: Seeks Cash Collateral Access
------------------------------------------
Clear Choice Shutters, Inc. asks the U.S. Bankruptcy Court for the
Middle District of Florida, Fort Myers Division, for authority to
use cash collateral and provide adequate protection to First
Horizon Bank.
The Debtor will require the use of approximately $155,000 of cash
collateral to continue operations of the business for the next four
weeks, and, depending on the month, a greater or lesser amount will
be required for each comparable period thereafter.
As of the Petition Date, CCS owes approximately $500,000 on one
line of credit from First Horizon Bank. CCS is the sole borrower
and obligor on the Loan. The Loan has been fully funded and matures
on July 31, 2023. The Loan is secured by a UCC-1 blanket lien on
the assets of CCS. By virtue of its lien, the Lender may assert a
first priority security interest in CCS's cash on hand and funds to
be received into its operating account during normal operations.
As adequate protection for the use of cash collateral, CCS proposes
granting the Lender a replacement lien to the extent of any
diminution in value, with such lien to have the same validity,
extent, and priority as its respective pre-petition lien but
subject to a lien in favor of CCS as debtor-in-possession being
requested simultaneously hereto. CCS will maintain adequate
liquidity during the Interim Period. CCS asserts that all interests
on cash collateral are adequately protected by the replacement lien
and the ongoing value of the business.
A copy of the Debtor's motion and budget is available at
https://urlcurt.com/u?l=t5I7Pb from PacerMonitor.com.
The Debtor projects total selling and administrative costs, on a
weekly basis, as follows:
$37,356 for the week ending June 3, 2023;
$37,356 for the week ending June 10, 2023;
$37,356 for the week ending June 17, 2023; and
$37,356 for the week ending June 24, 2023.
About Clear Choice Shutters, Inc.
Clear Choice Shutters, Inc. is a Florida corporation that was
formed in January 2006. CCS's corporate office is located in
Naples, Florida. CCS supplies and installs a wide variety of
shutters, doors, and hurricane-protection building supplies to the
Southwest Florida community for all types of structures, including
single family homes, high-rise condominiums, and commercial
buildings.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 23-00638) on June 2,
2023. In the petition signed by Kenneth B. Pytlik, president, the
Debtor disclosed up to $10 million in both assets and liabilities.
R. Scott Shuker, Esq., at Shuker & Dorris, P.A., represents the
Debtor as legal counsel.
CLOVIS ONCOLOGY: Committee Taps Baker & McKenzie as Legal Counsel
-----------------------------------------------------------------
The official committee of equity security holders of Clovis
Oncology, Inc. and its affiliates seeks approval from the U.S.
Bankruptcy Court for the District of Delaware to employ Baker &
McKenzie, LLP as its legal counsel.
The equity committee requires legal counsel to:
(a) give advice with respect to the rights, powers and duties of
the equity committee in the Debtors' Chapter 11 cases;
(b) participate in in-person and telephonic meetings of the
equity committee and subcommittees formed thereby, if any;
(c) assist the equity committee in its meetings and negotiations
with the Debtors and other parties involved in the Debtors' Chapter
11 cases;
(d) where necessary, assist the equity committee in analyzing
claims asserted against, and interests in, the Debtors, and in
negotiating with the holders of such claims and interests and
bringing, or participating in, objections or estimation proceedings
with respect to such claims and interests;
(e) where necessary, assist the equity committee in analyzing
the Debtors' assets and liabilities, including a review of the
Debtors' schedules of assets and liabilities, statement of
financial affairs, and other reports prepared by the Debtors;
(f) negotiate and take all necessary or appropriate actions in
connection with a plan of reorganization or liquidation and all
related documents thereunder and transactions contemplated
therein;
(g) attend all meetings and negotiations;
(h) provide legal advice regarding bankruptcy law, corporate
law, corporate governance, transactional, litigation and other
issues; and
(i) perform all other legal services.
The firm will be paid at these rates:
Partners $1,100 to $1,645 per hour
Associates $550 to $1,295 per hour
Paralegals $360 to $665 per hour
In addition, the firm will receive reimbursement for out-of-pocket
expenses incurred.
Paul Keenan Jr., Esq., a partner at Baker & Mckenzie, disclosed in
a court filing that his firm is a "disinterested person" pursuant
to Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Paul J. Keenan Jr., Esq.
John R. Dodd, Esq.
Reginald Sainvil, Esq.
Baker & Mckenzie, LLP
1111 Brickell Ave, Suite 1700
Miami, FL 33131
Tel: (305) 789-8900
Email: paul.keenan@bakermckenzie.com
john.dodd@bakermckenizie.com
reginald.sainvil@bakermckenzie.com
About Clovis Oncology
Clovis Oncology, Inc. is an American pharmaceutical company, which
mainly markets products for treatment in oncology. The company is
based in Boulder, Colo.
Clovis Oncology and its affiliates sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bank. D. Del. Lead Case No.
22-11292) on Dec. 11, 2022. In the petition signed by Paul E.
Gross, executive vice president and general counsel, Clovis
Oncology disclosed $319,164,834 in assets and $754,564,457 in
liabilities.
Judge J. Kate Stickles oversees the cases.
The Debtors tapped Morris Nichols Arsht and Tunnell, LLLP and
Wilkie Farr & Gallagher, LLP as bankruptcy counsels; Alixpartners,
LLP as financial advisor; Perella Weinberg Partners, LP as
investment banker; and Ernst & Young, LLP as tax services
provider.
Kroll Restructuring Administration, LLC is the claims, noticing and
solicitation agent.
The U.S. Trustee for Region 3 appointed an official committee of
unsecured creditors in the Debtors' cases. The committee tapped
Morrison & Foerster, LLP as lead bankruptcy counsel; Potter
Anderson & Corroon, LLP as Delaware counsel; Alvarez & Marsal
North
America, LLC as financial advisor; and Jefferies, LLC as investment
banker.
The U.S. Trustee also appointed an official committee to represent
the Debtors' equity security holders. The committee is represented
by Baker & McKenzie, LLP.
CONCRETE SOLUTIONS: Court OKs Cash Collateral Access Thru Nov 21
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California,
Northern Division, authorized Concrete Solutions & Supply to use
cash collateral on an interim basis in accordance with the budget,
with a 12% variance, through November 21, 2023.
CSS needs to use cash collateral to operate its business.
As previously reported by the Troubled Company Reporter, Union
Bank, which loaned funds to CSS prior to its first bankruptcy case,
and the Small Business Administration appear to be the only two
parties holding security interests in the cash collateral.
Union Bank extended an SBA-guaranteed loan to CSS. The SBA
provided an EIDL loan. Union Bank is owed approximately $329,254
and the SBA is owed $150,000 plus any accruing interest. Union Bank
may be fully secured but it may not be.
Unsecured claims exceed $401,553 without considering the unsecured
portions of Union Bank and the SBA.
As adequate protection, the Debtor will make monthly adequate
protection payments to Union in the amount of $1,500 due the 15th
day of each month at a physical or electronic address specified by
Union.
As further adequate protection, the Secured Creditors are granted
replacement liens in the Debtor's assets to the extent their
prepetition liens attached to property of the Debtor prepetition
and with the same validity, priority, extent and description of
collateral.
The replacement liens granted will have the same validity, extent
and liens held in prepetition collateral.
A further hearing on the matter is set for November 21, 2023 at 2
p.m.
A copy of the order is available at https://urlcurt.com/u?l=14p5Nd
from PacerMonitor.com.
About Concrete Solutions and Supply
Concrete Solutions and Supply sells and rents concrete restoration
equipment and related supplies and products from two locations:
Newbury Park and Fullerton, California.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 23-10314) on April 25,
2023.
In the petition signed by Alton Anderson, its president, the Debtor
disclosed up to $500,000 in assets and up to $1 million in
liabilities.
Judge Ronald A. Clifford III oversees the case.
Steven R. Fox, Esq., at The Fox Law Corporation Inc., represents
the Debtor as legal counsel.
CONSTANT CONTACT: S&P Lowers ICR to 'B-' on High Interest Rates
---------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on email
marketing provider Constant Contact Inc. to 'B-' from 'B'. At the
same time, S&P lowered its issue-level ratings on the company's
first- and second-lien debt to 'B-' from 'B' and to 'CCC' from
'CCC+', respectively.
The stable outlook reflects S&P's expectation that the company's
free operating cash flow (FOCF) will remain positive in 2023
despite higher interest rates and macroeconomic challenges.
High interest rates will continue to pressure Constant Contact's
cash flows through 2024. The Fed has continued to increase the
federal funds rate, with the most recent increase of 25 basis
points resulting from the Federal Open Market Committee meeting on
May 3, 2023. S&P Global economists believe that as prices begin to
stabilize, the first interest rate cut will not be until mid-2024.
Our economists also expect the fed funds rate will be 4% until late
2024 as the Fed commits to its "higher for longer" call. Constant
Contact does not have any interest rate hedging instruments to
soften the blow of higher rates. S&P said, "As a result, the
company has and will continue to experience higher interest expense
than expected in our previous forecast. Higher interest expense has
reduced the company's financial flexibility and cushion to absorb
adverse business conditions. More specifically, we now expect the
company to generate about $25 million of free cash flow in 2023
compared with $45 million in our prior forecast. This change is
largely driven by an increase in our expectation for interest
expense to about $115 million in our current forecast from $105
million previously. Lower top-line growth and slightly higher
capital expenditure (capex) also contribute to our expectation for
lower free cash flow in 2023. We expect the company's ability to
generate free cash flow will remain pressured as long as rates
remain elevated."
While Constant Contact's SMB clients have been resilient thus far,
they are still vulnerable to a potential recession. Constant
Contact targets SMBs with less than 20 employees for which email
marketing is the primary form of customer engagement. Under normal
economic conditions, about 30% of small business fail within two
years of launch. This exposes Constant Contact to a relatively high
level of churn on an annual basis. Despite a resilient economy thus
far, S&P Global economists still expect a shallow recession in
mid-2023, with U.S. GDP declining 0.3% from its peak in
first-quarter 2023 to its third-quarter trough. However, chances
for a worsening recession have increased, with inflation moderating
faster than expected in our economists' baseline forecast.
The elevated risk of recession could lead to even more significant
levels of customer churn that is unlikely to be offset by new
business startups over the next 12 months due to the higher cost of
capital. Further, as small businesses face operational pressures,
it could be more difficult for Constant Contact to expand average
revenue per subscriber, which could lead to organic revenue
decline.
The stable outlook reflects S&P's expectation that Constant
Contact's free cash flow will remain positive in 2023 despite
higher interest rates and macroeconomic challenges.
S&P could lower the rating on Constant Contact if the company
cannot generate sustainable positive free cash flow. This could
occur if:
-- Interest rates continue to rise and exceed our current
expectations;
-- Competition or cost pressures increase such that the company
materially loses market share; or
-- The company pursues substantial debt-financed acquisitions that
are not immediately accretive.
S&P could raise the rating on Constant Contact if the company:
-- Can sustainably generate FOCF to debt well above 5%;
-- Grows organic revenue in the low- to mid-single-digit percent
area; and
-- Maintains EBITDA interest coverage above 2x.
ESG credit indicators: E-2, S-2, G-3
Governance is a moderately negative consideration. S&P said, "Our
assessment of the company's financial risk profile as highly
leveraged reflects corporate decision-making that prioritizes the
interests of controlling owners, in line with our view of most
rated entities owned by private-equity sponsors. Our assessment
also reflects their generally finite holding periods and a focus on
maximizing shareholder returns."
CRYPTO CO: Increases Authorized Common Shares to 2 Billion
----------------------------------------------------------
Effective May 24, 2023, The Crypto Company amended Section 1 of
Article 4 of the Articles of Incorporation to increase the number
of authorized shares of common stock from 150,000,000 to
2,000,000,000.
As previously disclosed in the Company's definitive information
statement filed with the Securities and Exchange Commission on May
4, 2023, the Board of Directors of the Company unanimously approved
and recommended, and then certain shareholders of the Company
owning approximately 53% of the Company's outstanding common stock
approved the Amendment by written consent in lieu of a special
meeting in accordance with the applicable provisions of the Nevada
Revised Statutes and the Company's Bylaws. The Company prepared
and caused to be sent or delivered to its shareholders pursuant to
Regulation 14C under the Securities Exchange Act of 1934 an
information statement relating to the Amendment, prior to the
filing thereof with the Nevada Secretary of State.
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 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.
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.
CTI BIOPHARMA: Cancels 2023 Annual Meeting of Stockholders
----------------------------------------------------------
CTI BioPharma Corp. cancelled the 2023 Annual Meeting of
Stockholders which was scheduled for June 21, 2023, and withdrew
the proposals that were supposed to be submitted to stockholders at
the Annual Meeting.
The Annual Meeting was cancelled due to the ongoing tender offer by
Swedish Orphan Biovitrum AB (publ) (STO: SOBI) to acquire all of
the outstanding common stock of CTI pursuant to the Agreement and
Plan of Merger, dated as of May 10, 2023, by and among Sobi, a
Swedish public limited liability company, Cleopatra Acquisition
Corp., a Delaware corporation and an indirect, wholly owned
subsidiary of Sobi ("Purchaser"), and CTI. If the transaction
contemplated by the Merger Agreement is not consummated, the Board
of Directors will reschedule the Annual Meeting for a later date.
The transaction is expected to close by the third quarter of 2023,
subject to customary closing conditions. CTI expects that the
current members of the Board of Directors will continue as
directors until the closing of the transaction. Upon the closing
of the transaction, CTI common stock will no longer be listed on
any public market.
About CTI BioPharma
Headquartered in Seattle, Washington, CTI BioPharma Corp. is a
commercial biopharmaceutical company focused on the acquisition,
development and commercialization of novel targeted therapies for
blood-related cancers that offer a unique benefit to patients and
their healthcare providers. CTI has one commercially approved
product, VONJO (pacritinib), which has received accelerated
approval in the United States by the U.S. Food and Drug
Administration for the treatment of adult patients with
intermediate or high-risk primary or secondary (post-polycythemia
vera or post-essential thrombocythemia) myelofibrosis with a
platelet count below 50 x 10 9/L.
CTI Biopharma reported a net loss of $93 million for the year ended
Dec. 31, 2022, compared to a net loss of $97.91 million for the
year ended Dec. 31, 2021. As of March 31, 2023, the Company had
$112.27 million in total assets, $137.62 million in total
liabilities, and a total stockholders' deficit of $25.35 million.
Seattle, Washington-based Ernst & Young LLP, the Company's auditor
since 2018, issued a "going concern" qualification in its report
dated March 6, 2023, citing that the Company has suffered recurring
losses from operations and has stated that substantial doubt exists
about the Company's ability to continue as a going concern.
CURITEC LLC: Ongoing Operation to Fund Plan Payments
----------------------------------------------------
Curitec, LLC, filed with the U.S. Bankruptcy Court for the Southern
District of Texas a Plan of Reorganization with Incorporated
Adequate Disclosures dated June 1, 2023.
Curitec was formed in 2018 as a limited liability company organized
under the laws of the State of Florida. Maria Percival and Nicholas
Percival are the sole members of Curitec and each own 50% of the
membership units.
Based out of its Texas headquarters, Curitec provides wound
management solutions to post-acute and long-term care patients.
Curitec's goal is for Patients to receive the best possible wound
care products while lowering cost for the delivery of wound care
goods and services to Patients receiving health care services in
long-term care, post-acute facilities, and/or hospice agencies
(collectively, the "Facilities" and each a "Facility").
Curitec's financial distress is directly attributable to an
unforeseen decision by the CMS to suspend Medicare payments to
Curitec pursuant to the Suspension Letter. Without the ability to
obtain immediate relief from CMS, Curitec filed the Chapter 11 Case
in order to seek the protection of the automatic stay pending
resolution of its disputes with CMS in addition to achieving other
debt restructuring objectives.
Since the Petition Date, Curitec has engaged in extensive
negotiations with CMS to address the payment suspension. This
resulted in a stipulation and agreed order between Curitec and CMS
(the "CMS Stipulation") pursuant to which, among other things, CMS
agreed to pay Curitec 75% of claims submitted after the Petition
Date and may withhold only up to 25% of claims pending resolution
of the parties' underlying disputes.
Class Four consists of Allowed Unsecured Claims. In full and final
satisfaction of all Allowed Unsecured Claims in Class Four, Curitec
shall pay the Holder of each Allowed Claim in Class Four either:
(A) Cash on the Effective Date, or as soon as is reasonably
practicable thereafter, in the Allowed amount of such Claim; or (B)
as Curitec and the Holder of such Allowed Claim shall agree. The
Claims in Class Four are unimpaired and are not entitled to vote on
the Plan, pursuant to § 1126(f) of the Bankruptcy Code.
The Holders of Interests in Class Six shall retain their Interests
under this Plan. All Interests shall be reinstated and, to the
extent necessary, that certain Operating Agreement of Curitec, LLC
dated October 16, 2018 (as the same may have been or may be amended
from time to time) is assumed and reinstated. The Interests in
Class Seven are unimpaired.
The payments required under the Plan shall be made primarily from
the following sources: (a) Cash on hand; (b) the proceeds generated
from the ongoing operation of Curitec's businesses; (c) the
proceeds of any Causes of Action and Claims Curitec and/or the
Estate have brought, may elect to bring, or may be brought of their
behalf, including without limitation, any proceeds of such Causes
of Action; and (d) the proceeds of the sale of the Assets.
A full-text copy of the Plan of Reorganization dated June 1, 2023
is available at https://urlcurt.com/u?l=UsaQFz from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Samuel R. Maizel, Esq.
Dentons US LLP
601 South Figueroa Street, Suite 2500
Los Angeles, California 90017-5704
Tel: (213) 623-9300
Fax: (213) 623-9924
Email: samuel.maizel@dentons.com
-and-
Casey Doherty, Esq.
Dentons US LLP
1300 Post Oak Blvd.
Suite 701
Houston, TX 77056
Phone: (713) 658-4600
Email: casey.doherty@dentons.com
- and -
Sam J. Alberts, Esq.
Dentons US LLP
1900 K Street NW
Washington, DC 20006
Phone: (202) 408-7004
Email: sam.alberts@dentons.com
- and -
Andrew C. Helman, Esq.
Dentons Bingham Greenebaum LLP
One Beacon Street
Suite 25300
Boston, MA 02108
Phone: (207) 619-0919
Email: andrew.helman@dentons.com
About Curitec LLC
Curitec LLC -- https://curitec.com/ -- is a Medicare-accredited
Part B provider of durable medical supplies (DMEPOS). Its services
include the delivery of advanced wound care products as well as
ostomy, urological, and tracheostomy supplies to long-term care
facilities and hospice.
Curitec LLC filed a petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. S.D. Tex. Case No. 23-90108) on March 3,
2023. In the petition filed by Nicholas Percival as manager and
chief operating officer, the Debtor reported assets and liabilities
between $1 million and $10 million each.
The case is overseen by the Honorable Bankruptcy Judge Christopher
M. Lopez.
The Debtor is represented by Casey William Doherty, Jr, Esq., and
Samuel R. Maizel, Esq., at Dentons US LLP.
CYXTERA TECHNOLOGIES: Case Summary & 30 Top Unsecured Creditors
---------------------------------------------------------------
Lead Debtor: Cyxtera Technologies, Inc.
2333 Ponce De Leon Boulevard, Suite 900
Coral Gables, Florida 33134
Business Description: The Debtors, together with their non-Debtor
affiliates, are a global data center
provider of: (i) colocation services -- the
practice of providing space and power to
customers in reliable, redundant, and secure
data centers to host customers' critical
applications and workloads in an integrated
ecosystem; (ii) interconnection services --
the practice of providing fast, highly
reliable, convenient, and affordable
connections between customers and their
network service providers; (iii) bare metal
services -- the practice of offering
customers on-demand access to private bare
metal servers and cloud technology with
seamless connection to third party partner
services; and (iv) deployment and ongoing
support services in connection with
Cyxtera's full suite of data center
offering.
Chapter 11 Petition Date: June 4, 2023
Court: United States Bankruptcy Court
District of New Jersey
Sixteen affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Cyxtera Technologies, Inc. (Lead Case) 23-14853
Cyxtera Communications, LLC 23-14852
Cyxtera Canada TRS, ULC 23-14854
Cyxtera Canada, LLC 23-14855
Cyxtera Communications Canada, ULC 23-14856
Cyxtera Data Centers, Inc. 23-14857
Cyxtera DC Holdings, Inc. 23-14858
Cyxtera DC Parent Holdings, Inc. 23-14859
Cyxtera Digital Services, LLC 23-14860
Cyxtera Employer Services, LLC 23-14861
Cyxtera Federal Group, Inc. 23-14862
Cyxtera Holdings, LLC 23-14863
Cyxtera Management, Inc. 23-14864
Cyxtera Netherlands B.V. 23-14865
Cyxtera Technologies Maryland, Inc. 23-14866
Cyxtera Technologies, LLC 23-14867
Judge: Hon. John K. Sherwood
Debtors'
General
Bankruptcy
Counsel: Edward O. Sassower, P.C.
Christopher Marcus, P.C.
Derek I. Hunter, Esq.
KIRKLAND & ELLIS LLP
KIRKLAND & ELLIS INTERNATIONAL LLP
601 Lexington Avenue
New York, New York 10022
Tel: (212) 446-4800
Fax: (212) 446-4900
Email: edward.sassower@kirkland.com
christopher.marcus@kirkland.com
derek.hunter@kirkland.com
Debtors'
Co-Bankruptcy
Counsel: Michael D. Sirota, Esq.
Warren A. Usatine, Esq.
Felice R. Yudkin, Esq.
COLE SCHOTZ P.C.
Court Plaza North, 25 Main Street
Hackensack, New Jersey 07601
Tel: (201) 489-3000
Email: msirota@coleschotz.com
wusatine@coleschotz.com
fyudkin@coleschotz.com
Debtors'
Investment
Banker: GUGGENHEIM SECURITIES, LLC
Debtors'
Restructuring
Advisor: ALIXPARTNERS LLP
Debtors'
Noticing &
Claims
Agent: KURTZMAN CARSON CONSULTANTS LLC
Total Assets as of Dec. 31, 2022: $131,000,000
Total Debt as of Dec. 31, 2022: $2,679,000,000
The petitions were signed by Eric Koza as chief restructuring
officer.
A full-text copy of the Lead Debtor's petition is available for
free at PacerMonitor.com at:
https://www.pacermonitor.com/view/SXBIYAA/Cyxtera_Technologies_Inc__njbke-23-14853__0001.0.pdf?mcid=tGE4TAMA
Consolidated List of Debtor's 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. HITT Contracting Inc. Trade Payable $3,534,906
2900 Fairview Park Dr,
Falls Church, VA 22042
Corporate Headquarters
Tel: 703-846-9000
Email: trichmond@hitt-gc.com
2. Digital Realty Trade Payable $2,509,637
2323 Bryan Street
Suite 1800, Dallas, TX 75201
Rafal Rak, Vice President
Portfolio Management Group
Mobile: 408-429-5630
Email: rrak@digitalrealty.com
3. Menlo Equities Trade Payable $2,262,583
2765 Sand Hill Road
Suite 200, Menlo
Park, CA 94025
C. Michael Johnston
Main: 650-326-9300
Direct: 650-289-1709
Email: johnson@menloequities.com
4. Cummins Sales and Service Trade Payable $2,240,112
500 Jackson St.
Columbus, IN 47201
Corporate Headquarters
Tel: 800-286-6467
Email: pem.national.accounts@cummins.com
5. Lazard Freres & Co Trade Payable $1,500,000
30 Rockefeller Plaza
New York, NY 10112
Tel: +1 212 632 6000
6. Securitas Security Trade Payable $1,404,136
Services USA Inc.
150 S. Wacker Drive
Suite LL50
Chicago, IL 60606
North American Office
Tel: 312-715-1550
Email: ronald.novako2@securitasinc.com
7. Southwire Company, LLC Trade Payable $1,090,893
One Southwire Drive
Carollton, GA 30119
Corporate Office
Tel: 770-832-4529
Email: sandra.pitts@southwire.com
8. Power Solutions LLC Trade Payable $995,085
17201 Melford Blvd.
Bowie, MD 20715
Corporate Office Headquarters
Tel: 301-794-0330
Fax: 301-794-0340
Email: ahicks@powersolutions-llc.com
info@powersolutions-llc.com
9. Iron Mountain Trade Payable $902,830
8521 East Princess
Drive, Scottsdale, AZ 85255
Office: 602-273-5499
Mobile: 480-265-0484
Email: jason.scanlan@ironmountain.com
10. Trane US Inc. Trade Payable $867,814
3600 Pammel Creek Rd
La Crosse, WI 54601
Commercial Sales Office
Tel: 608-788-8430
Email: areft@trane.com
11. Hartz Mountain Trade Payable $858,719
Industries Inc.
500 Plaza Drive
Secaucus, NJ 07094
Contantino T. Milano
(Gus Milano)
President & Chief Operating
Officer
Direct: 201-272-5900
Cell: 201-709-1000
Email: gm@hartzmountain.com
12. Sabey Corporation Trade Payable $762,428
12201 Tukwila Int'l
Blvd. 4th Floor
Seattle, WA 98168
Attn: General Counsel
13. Server Farm Trade Payable $749,156
444 N. Nash Street, EL
Segundo, CA 90245
North America Headquarter
Tel: 310-563-1700
Email: sales@sfrdc.com
14. Megawatt Electrical Trade Payable $664,013
3100 De La Cruz Blvd,
Suite 208, Santa
Clara, CA 95054
Corporate Office
Tel: 408-684-3451
Email: accountsreceivable@dwebberconsulting.com;
info@mwatte.com
15. Daikin Applied Trade Payable $644,771
Americas Inc.
13600 Industrial Park Blvd
Minneapolis, MN 55441
North America Corporate Office
Tel: 763-553-5330
Email: brandi.lehner@daikinapplied.com
16. Clune Construction Trade Payable $603,321
Company, LP
10 South Riverside
Plaza, Suite 2200
Chicago, IL 60606
National Offices
Tel: 312-726-6103
Email: clunereceivables@clunegc.com
17. CBRE Investments Trade Payable $571,496
3501 Jamboree Road
Suite 100, Newport
Beach, CA 92660
Buffi Hendrix
Senior Property Manager | LIC.
01181450
T: +1 949 809 3626
D: +1 949 809 3650
F: +1 949 725 8545
Email: buffi.hendrix@cbre.com
18. IPI Partners Trade Payable $568,775
300 N LaSalle St
Suite 1875, Chicago, IL 60654
Matt A'Hearn
Tel: 312-796-2201
Email: mahearn@ipipartners.com
19. Latham & Watkins, LLP Trade Payable $562,470
1271 Ave of the Americas
New York, NY 10020
Tel: +1.212.906.1200
20. Accu-Tech Corp Trade Payable $544,815
11350 Old Roswell Rd
Ste 100, Alpharetta, GA
30009
Tel: 888-222-8832
Email: remittance@accutech.com
21. Cyrusone Inc. Trade Payable $492,763
2850 N Harwood St
Suite 2200
Dallas, TX 75201
Tel: +1 855 584 3198
22. Hewlett Packard Trade Payable $475,528
200 Connell Dr, Suite 5000
Berkeley Heights, NJ 07922
Corporate Headquarters
1701 E Mossy Road
Spring TX 77389
Tel: 888 342-2156
23. S&P Global Market Trade Payable $471,267
Intelligence LLC
55 Water Street
New York, NY 10041
Tel: +1 800-786-8980
Email: e.market.intelligence@spglobal.com
24. Wingspire Equipment Trade Payable $424,312
Finance, LLC
18302 Irvine Blvd
Suite 300
Tustin, CA 92780
Tel: 844.816.9420
Email: hello@wingspirecapital.com
25. Chicago Mercantile Trade Payable $408,189
Exchange Inc.
PO Box 73672
Chicago, IL 60673
Executive Office Headquarters
20 South Wacker Drive
Chicago, IL 60606
Tel: 312-930-1000
Email: gobalaccountmanagement@cmegroup.com
26. Sullivan & Cromwell LLP Trade Payable $403,497
125 Broad Street
New York, NY 10004
Tel: +1 212-558-4000
27. Pivot Technology Trade Payable $387,288
Services Corp
6025 The Corners Pkwy
Suite 100
Norcross, CA 30092
Tel: 714-861-2200
28. ICM Solutions Trade Payable $386,593
4899 West 2100 South
Salt Lake City, UT 84120
Tel: 800-779-4450
29. Multistack LLC Trade Payable $381,581
1065 Maple Ave
Sparta, WI 54656
Corporate Office
Tel: 08 366-2400
Fax: 608-366-2450
30. Structure Tone, LLC Trade Payable $360,637
330 West 34th Street
New York, NY 10001
Tel: 212.481.6100
Email: bd@stobuildinggroup.com
CYXTERA TECHNOLOGIES: Initiates Pre-Arranged Chapter 11 Process
---------------------------------------------------------------
Cyxtera (NASDAQ: CYXT), a global leader in data center colocation
and interconnection services, on June 4 disclosed that, pursuant to
the previously disclosed Restructuring Support Agreement ("RSA") it
reached with certain of its lenders holding over two-thirds of its
outstanding term loan, the Company and certain of its subsidiaries
have initiated a pre-arranged court-supervised process under
Chapter 11 of the United States Bankruptcy Code in the U.S.
Bankruptcy Court for the District of New Jersey. Cyxtera expects to
use the Chapter 11 process to strengthen the Company's financial
position, meaningfully deleverage its balance sheet and facilitate
the business's long-term success.
Cyxtera is continuing to operate its unique global platform of
highly interconnected data centers normally and without
interruption. Customers also continue to have access to their
Cyxtera data center sites and equipment as usual. In addition,
Cyxtera's unwavering focus on providing high-quality services that
help its customers around the world transform and scale their
businesses remains the same.
Nelson Fonseca, Cyxtera's Chief Executive Officer, said, "We have
thoroughly evaluated options to enhance value for the Company and
our stakeholders. Together with our Lenders, we determined that
initiating this process is the best path forward for Cyxtera and
our stakeholders as we pursue new opportunities for growth. We
appreciate the significant support from our Lenders, which will
enable us to move through this process as quickly as possible. We
are confident these steps will enable us to position our business
for the long term as we continue serving our customers with
innovative services and the highest levels of support."
Mr. Fonseca continued, "Our recent business momentum and the high
demand for our global data center platform are a testament to the
hard work and commitment of our team, as well as to the continued
support of our customers and business partners. We look forward to
emerging from this process as a stronger organization with
additional financial flexibility to drive Cyxtera's next phase of
growth."
Cyxtera has received a commitment for $200 million in
debtor-in-possession financing from certain of the term lenders,
which is convertible into an exit facility upon the Company's
emergence from the court-supervised process. This new financing is
expected to provide sufficient liquidity to support Cyxtera during
this process and beyond.
As Cyxtera moves through the court-supervised process, it is
continuing to pursue a potential sale of the business or a
significant investment from a new investor.
The Company has filed a number of customary motions with the Court
seeking authorization to support its operations, including the
payment of employee wages, salaries and benefits without
interruption. The Company expects to receive court approval for
these requests shortly. The Company intends to pay vendors and
suppliers in full for goods and services provided on or after the
filing date. Cyxtera is continuing to evaluate its data center
footprint, consistent with its commitment to optimizing
operations.
The Company's subsidiaries in Germany, Singapore and the United
Kingdom are not included in the court-supervised process.
Additional information regarding the Company's court-supervised
process is available at www.CyxteraRestructuring.com. Court filings
and other information related to the proceedings are available on a
separate website administrated by the Company's claims agent, KCC,
at www.kccllc.net/cyxtera; by calling KCC toll-free at (877)
726-6510, or (424) 236-7250 for calls originating outside of the
U.S. or Canada; or by emailing KCC at cyxterainfo@kccllc.com.
Kirkland & Ellis LLP is serving as legal counsel to Cyxtera,
Guggenheim Securities, LLC is serving as financial advisor and
AlixPartners, LLP is serving as restructuring advisor.
About Cyxtera Technologies Inc.
Headquartered in Coral Gables, FL, Cyxtera Technologies, Inc. --
https://www.cyxtera.com -- is a global data center company
providing retail colocation and interconnection services. The
Company provides an innovative suite of deeply connected and
intelligently automated infrastructure and interconnection
solutions to more than 2,300 leading enterprises, service providers
and government agencies around the world - enabling them to scale
faster, meet rising consumer expectations and gain a competitive
edge.
Cyxtera reported a net loss of $355.1 million in 2022, a net loss
of $257.9 million in 2021, and a net loss of $122.8 million in
2020.
* * *
As reported by the TCR on Dec. 23, 2022, S&P Global Ratings lowered
its issuer credit rating on U.S.-based data center operator Cyxtera
Technologies Inc. by two notches to 'CCC' from 'B-'. S&P said the
negative outlook reflects Cyxtera's diminishing liquidity position
and the potential for a default or debt restructuring over the next
12 months.
DIAMANTE ENTERPRISES: Case Summary & 10 Unsecured Creditors
-----------------------------------------------------------
Debtor: Diamante Enterprises LLC
16672 Botaniko Dr S
Weston, FL 33326-1075
Chapter 11 Petition Date: June 5, 2023
Court: United States Bankruptcy Court
Southern District of Florida
Case No.: 23-14383
Judge: Hon. Scott M. Grossman
Debtor's Counsel: Chad Van Horn, Esq.
VAN HORN LAW GROUP, P.A.
500 NE 4th St Ste 200
Fort Lauderdale, FL 33301-1163
Tel: (954) 765-3166
Email: chad@cvhlawgroup.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Danielle Parker as president.
A copy of the Debtor's list of 10 unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/3XED6AY/Diamante_Enterprises_LLC__flsbke-23-14383__0002.0.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/YESNV3Q/Diamante_Enterprises_LLC__flsbke-23-14383__0001.0.pdf?mcid=tGE4TAMA
DIAMOND SPORTS: MLB Takes Over Padres Broadcasts After Non-Payment
------------------------------------------------------------------
Joe Reedy of ABC News reports that Major League Baseball will take
over broadcasts of San Diego Padres games after Diamond Sports
missed a rights fees payment to the regional sports network's
parent company and let the grace period expire.
Diamond Sports, which owns 19 networks under the Bally Sports
banner, said in a statement that it decided "not to provide
additional funding to the San Diego RSN that would enable it to
make the rights payment to the San Diego Padres during the grace
period and will no longer be broadcasting Padres games after
Tuesday, May 23, 2023."
The Padres RSN is owned by a joint venture of the team and
Diamond.
The Padres become the first team that MLB will take over production
of its broadcasts. MLB set up a local media department during the
offseason to prepare for a bankruptcy filing by Diamond Sports,
which took place in March 2023.
"While we're disappointed that Diamond Sports Group failed to live
up to their contractual agreement with the club, we are taking this
opportunity to reimagine the distribution model, remove blackouts
on local games, improve the telecast, and expand the reach of
Padres games by more than 2 million homes," MLB Chief Revenue
Officer Noah Garden said in a statement.
MLB announced Tuesday night that fans in the Padres' home
television market will be able to watch games on DirecTV, Cox,
Spectrum, AT&T U-Verse and fubo. MLB will also offer a
direct-to-consumer streaming subscription for $19.99 per month or
$74.99 for the rest of the season by registering at MLB.TV.
This is the first time MLB.TV is offering a DTC option in a team's
home market and also lifts the blackout rules that were in place
for games previously distributed on Bally Sports San Diego.
Padres games through Sunday will be available for free with an MLB
login at MLB.com, Padres.com and in the MLB apps on mobile and
connected devices.
MLB said that the new arrangement expands the reach of Padres’
games in its home television market by 189% from approximately 1.13
million homes to approximately 3,264,000.
Padres TV announcers Don Orsillo, Mark Grant and Bob Scanlan will
remain in place because they are employed by the team.
There wasn't any mention at the end of the Padres 9-4 win at the
Miami Marlins or on the postgame show that Tuesday was the final
Padres game on Bally Sports San Diego.
Due to a storm at the ballpark, the broadcast feed for both teams
was disrupted during the seventh inning.
The Padres signed a 20-year, $1.2 billion contract with Fox Sports
Networks in 2012. Diamond Sports Group and Sinclair Broadcast Group
bought the regional sports networks from The Walt Disney Co. for
nearly $10 billion in 2019. Disney was required by the Department
of Justice to sell the networks for its acquisition of 21st Century
Fox’s film and television assets to be approved.
Diamond Sports is in Chapter 11 bankruptcy proceedings in the
Southern District of Texas. Diamond said in a financial filing last
fall it had debt of $8.67 billion.
Despite the Padres having baseball's third-biggest payroll ($257
million) and a roster headed by Manny Machado and Fernando Tatis
Jr., Diamond cited the amount of rights payments to the Padres and
small market area compared to other reginal networks for why it was
backing out.
"We have been preparing for this groundbreaking moment," Padres CEO
Erik Greupner said in a statement. "The Padres are excited to be
the first team to partner with Major League Baseball to offer a
direct-to-consumer streaming option through MLB.TV without
blackouts while preserving our in-market distribution through
traditional cable and satellite television providers."
Diamond owned 80% of Bally Sports San Diego with the Padres having
the other 20%. It was one of six Diamond regional networks where
MLB teams are minority owners. The others are the Cincinnati Reds,
Kansas City Royals, Los Angeles Angels, Miami Marlins and St. Louis
Cardinals.
With the Padres off Bally Sports, Diamond has the rights to 40
professional teams — 13 baseball, 15 NBA and 12 NHL.
A hearing will be held on Wednesday, June 7, 2023, whether Diamond
can reduce its rights fees payments to the Cleveland Guardians,
Minnesota Twins, Texas Rangers and Arizona Diamondbacks
About Diamond Sports Group
Diamond Sports Group, LLC operates as a sports marketing company.
It offers seminars, combine, speed and agility assessments,
recruiting tools, and online training sessions for sports including
football, baseball, soccer, and basketball. Diamond Sports is an
unconsolidated and independently run subsidiary of Sinclair
Broadcast Group.
Diamond Sports Group and 29 of its affiliates sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Texas Lead Case
No. 23-90116) on March 14, 2023. Diamond said it plans to
restructure its balance sheet while continuing to broadcast local
games on its portfolio of 19 networks under the Bally Sports brand
across the U.S.
In the petition filed by David F. DeVoe, Jr., as chief financial
officer and chief operating officer, Diamond Sports Group listed $1
billion to $10 billion in both assets and liabilities.
Judge Christopher M. Lopez oversees the cases.
The Debtors tapped Paul, Weiss, Rifkind, Wharton & Garrison, LLP
and Porter Hedges, LLP as bankruptcy counsels; Wilmer Cutler
Pickering Hale and Dorr, LLP as special corporate and litigation
counsel; AlixPartners, LLP as financial advisor; Moelis & Company,
LLC and LionTree Advisors, LLC as investment bankers; Deloitte Tax,
LLP as tax advisor; Deloitte Financial Advisory Services, LLP as
accountant; and Deloitte Consulting, LLP as consultant. Kroll
Restructuring Administration, LLC is the claims agent.
The U.S. Trustee for Region 7 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
The committee tapped Akin Gump Strauss Hauer & Feld LLP as counsel;
FTI Consulting, Inc., as financial advisor; and Houlihan Lokey
Capital, Inc. as investment banker.
DIVISION SEVEN: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Division Seven Contracting, Inc.
58 Scenic Hills Drive
Ridge, NY 11961-3024
Business Description: The Debtor is a foundation, structure, and
building exterior contractor.
Chapter 11 Petition Date: June 5, 2023
Court: United States Bankruptcy Court
Eastern District of New York
Case No.: 23-71998
Judge: Hon. Louis A. Scarcella
Debtor's Counsel: Robert J. Spence, Esq.
SPENCE LAW OFFICE, P.C.
55 Lumber Road
Suite 5
Roslyn, NY 11576
Tel: 516-336-2060
Fax: 516-605-2084
Email: rspence@spencelawpc.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by John Lima 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/HIQ6FAQ/Division_Seven_Contracting_Inc__nyebke-23-71998__0001.0.pdf?mcid=tGE4TAMA
ESJ TOWERS: Unsecureds Owed $25M to Get 3% of Claims in 60 Months
-----------------------------------------------------------------
ESJ Towers, Inc., d/b/a Mare St. Clair Hotel, filed with the U.S.
Bankruptcy Court for the District of Puerto Rico a Disclosure
Statement describing Plan of Reorganization dated June 1, 2023.
Debtor was a profitable business prior to the effects of Hurricane
Maria on the ESJ Towers Condominium (the "Condominium"),
exacerbated by the closing of its operations at the Condominium,
because of the regulations of the Government of Puerto Rico, due to
the COVID-19 pandemic.
In addition to the impact of the closing of the Condominium due to
COVID-19, the lack of insurance supplemental funds to restore the
Condominium, made it impossible for Debtor to pay maintenance fees
to the HOA without a set off, as well as Debtor's obligations to
its secured and unsecured creditors, underscoring that 4,288
timeshare owners owe Debtor $6,083,670.89, left Debtor with no
alternative but to file its petition for reorganization under
Chapter 11 of the Bankruptcy Code.
Since December 18, 2022, Black Briar Advisor, LLC, through its
principal Stephen L. Nalley, has been rendering managerial services
to Debtor in Debtor's regular course of business. Black Briar's
managerial role of Debtor's assets is necessary for Debtor's
effective reorganization since, inter alia, it is directed to the
turning around of Debtor's operations by.
Black Briar has also streamlined the labor and reorganized Debtor's
staff to maximize efficiency. Debtor's operations are well
positioned under Black Briar's guidance moving forward to maximize
the returns. Black Briar has also put together the only Cap-ex
budget that exists for the property.
The Plan provides that only holders of Allowed Claims, that is,
holders of Claims not in dispute, not contingent, not unliquidated
in amount and not subject to objection or estimation, are entitled
to receive distribution thereunder. Until a claim becomes an
Allowed Claim, distribution will not be made to the holder of such
claim.
Class 9 consists of Holders of Allowed General Unsecured Claims for
$65,000 or less and those General Unsecured Creditors who
voluntarily reduce their claims to $65,000, estimated in
$1,405,435.84. Holders of Allowed General Unsecured Claims for
$65,000.00 or less and those General Unsecured Creditors who
voluntarily reduce their claims to $65,000.00 shall be paid 3%
thereof on the Effective Date. Class 9 is impaired under the Plan.
Class 10 consists of Holders of Allowed General Unsecured Claims in
excess of $65,000, estimated in $24,656,708.20. Holders of Allowed
General Unsecured Claims in excess of $65,000, excepting claims of
Debtor's insiders, will be paid 3% thereof in deferred equal
consecutive monthly installments of $11,685.51, without interest,
commencing on the Effective Date and continuing on the 30th day of
each subsequent month during a 60-month period. Class 10 is
impaired.
Class 13 consists of Interest of Debtor's Shareholder Conexus
Holdings Puerto Rico, LLC. Debtor's issued and outstanding shares
will be transferred to a Trust to be created on the Effective Date
with powers and duties for overseeing Debtor's operations, the
consummation of the Plan and proceeding with demands and litigation
of Debtor's claims and Causes of Action, with the proceeds thereof
and/or those of the sale of Debtor's Assets, after the payment of
professional fees and expenses, to be distributed pro-rata to the
Holders of Class 10 General Unsecured Claims, as set forth in the
Plan.
Upon consummation of the Plan, if Debtor's Assets have not been
sold Debtor's issued and outstanding shares will be transferred by
the Trust to the holder of the interest in Debtor, as finally
determined by a court with competent jurisdiction. If Debtor's
Assets are sold and the Plan is consummated with the proceeds of
the sale, any remaining balance will be disbursed by the Trust to
the holder of the interest in Debtor, as finally determined by a
court with competent jurisdiction.
Except as otherwise provided in the Plan, Administrative Expense
Claims will be paid in cash on the Effective Date of the Plan.
Holders of General Unsecured Claims for $65,000 or less and those
that voluntarily reduce their claims to $65,000 will be paid on the
Effective Date 3% thereof. Allowed Priority Tax Claims, General
Unsecured Claims in excess of $65,000 and Debtor's other Allowed
Claims will be paid with the available funds originating from
Debtor's operations and/or the sale of its Assets.
A full-text copy of the Disclosure Statement dated June 1, 2023 is
available at https://urlcurt.com/u?l=LwTpa1 from PacerMonitor.com
at no charge.
Debtor's Counsel:
Charles A. Cuprill, Esq.
Charles A. Cuprill, P.S.C., Law Offices
356 Fortaleza Street (2nd Floor)
San Juan, PR 00901
Tel: 787-977-0515
Email: ccuprill@cuprill.com
About ESJ Towers
ESJ Towers, Inc. owns the ESJ Towers in Carolina, P.R. The luxury
apartments and condo units at ESJ Towers have direct access to Isla
Verde Beach, widely considered one of the best in Puerto Rico.
ESJ sought protection under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. D.P.R. Case No. 22-01676) on June 10, 2022, with as much as
50 million in both assets and liabilities. ESJ President Keith St.
Clair signed the petition.
Judge Enrique S. Lamoutte Inclan oversees the case.
The Debtor tapped Charles A. Cuprill, Esq., at Charles A. Cuprill,
PSC Law Offices as bankruptcy counsel; Ramon Luis Nieves, Esq., at
RL Legal Consulting Services, LLC and Luis Daniel Muniz, Esq., as
special counsels; Dage Consulting CPAS, PSC as financial advisor;
CPA Luis R. Carrasquillo & Co., P.S.C. as financial consultant; and
De Angel & Compania, PA, LLC as auditor.
The U.S. Trustee for Region 21 appointed an official committee of
unsecured creditors on Sept. 12, 2022. MRO Attorneys at Law, LLC
and Dage Consulting CPAS, PSC serve as the committee's legal
counsel and financial advisor, respectively.
FARMHOUSE CREATIVE: Bid to Use Cash Collateral Denied as Moot
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida,
Orlando Division, denied as moot the motion for authority to use
cash collateral filed by Farmhouse Creative, LLC following
confirmation on the Debtor's Final Subchapter V Plan of
Reorganization.
As previously reported by the Troubled Company Reporter, the Debtor
was previously permitted to use cash collateral to pay: (a) amounts
expressly authorized by the Court, including payments to the
Subchapter V Trustee and payroll obligations incurred post-
petition in the ordinary course of business; (b) the current and
necessary expenses set forth in the budget, with a 10% variance;
and (c) additional amounts as may be expressly approved in writing
by Florida Business Development Corporation.
Farmhouse Creative submitted a Final Subchapter V Plan of
Reorganization dated May 18, 2023. Following submission of the
original Plan, the Farmhouse and Florida Business Development
Corporation as Lender reached an agreement on certain plan
modifications, the full extent of which are incorporated into the
Final Plan.
Class 1 consists of the Allowed Secured Claim of Florida Business
Development Corporation. FBC's Class 1 Claim is secured by a lien
on substantially all of the Personal Property of Farmhouse
Creative. FBC shall retain its lien on the Farmhouse Collateral,
and shall receive payment of its Allowed Class 1 Claim, minus any
payments received after the Petition Date (if any), in equal
monthly payments commencing on June 1, 2023 based upon the
amortization schedule with a maturity date occurring on the last
day of the 60th month following the Effective Date.
On the Effective Date, FBC will receive a cash flow note from the
Reorganized Debtor. The Cash Flow Note will entitle FBC to receive
payments over a period of 5 years equal to 50% of the surplus of
the Reorganized Debtor's actual cash balance above the ending cash
balance reflected on the Financial Projections. The maximum
Distribution under the Cash Flow Note shall be equal to the total
amount of the unpaid portion of the Class 1 Claim, with the Class 1
Claimholder not receiving any amount greater than its Allowed Class
1 Claim.
On or before the Effective Date of the Plan, Jason & Dawn Farmer
will deposit $6,700 into the trust account of Latham Luna Eden &
Beaudine, LLP, which amount represents each of the quarterly plan
payments for Year 1 of the Plan. To the extent the Reorganized
Debtor requires any portion of the Quarterly Payment Fund in Year 1
of the Plan to fund payments to the Class 1 Claimholder, the
required portion of the Quarterly Payment Fund shall be paid to FBC
from the Trust Account, and the Reorganized Debtor or Mr. and Mrs.
Farmer will replenish the Quarterly Payment Fund by the 30th day of
the first month of Year 2 of the Plan. To the extent the
Reorganized Debtor does not draw from the Quarterly Payment Fund in
Year 1, the $6,700.00 fund proceeds will be returned to the
Reorganized Debtor or Mr. and Mrs. Farmer as the case may be.
Like in the prior iteration of the Plan, Holders of Class 2 General
Unsecured Claims shall receive monthly pro rata distributions of
$390.24 over a term of 5 years from the Effective Date after
Administrative Claims, Priority Claims are satisfied in full.
The Plan contemplates the Debtor will continue to manage and
operate its business sin the ordinary course, but with restructured
debt obligations and reduced operating expenses. It is anticipated
that the revenue from ordinary course business and collection of
outstanding accounts receivable will be sufficient to make the Plan
Payments and satisfy all Allowed Claims in full.
A full-text copy of the Final Subchapter V Plan dated May 18, 2023
is available at https://urlcurt.com/u?l=iV9Tuj from
PacerMonitor.com at no charge.
A copy of the Court's order is available at
https://urlcurt.com/u?l=yLiXj8 from PacerMonitor.com.
About Farmhouse Creative, LLC
Farmhouse Creative, LLC is a closely held Florida limited liability
company formed in 2019 for the purpose of acquiring and operating
the KidzArt Orlando franchise. KidzArt Orlando offers a unique art
enrichment program where children can learn to draw, learn about
art, and enhance their creativity.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 23-00178) on January 18,
2023. In the petition signed by Dawn Farmer, managing member, the
Debtor disclosed up to $500,000 in both assets and liabilities.
Judge Tiffany P. Geyer oversees the case.
Daniel A. Velasquez, Esq., at Latham Luna Eden and Beaudine LLP,
represents the Debtor as legal counsel.
FORD CITY RX: Wins Final Cash Collateral Access
-----------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Alabama,
Northern Division, authorized Ford City RX, LLC to use cash
collateral on a final basis in accordance with the budget.
The Debtor requires the use of cash collateral to pay operating
expenses.
As previously reported by the Troubled Company Reporter, prior to
the Petition Date, the Debtor is obligated, either as Borrower or
Co-Borrower or as Guarantor, for:
$70,566 Business Loan Agreement and/or Note to Fresh Funding
Solutions, Inc.
$81,205 Business Loan Agreement and/or Note to Royal Oak
Funding, LLC
$109,106 Business Loan Agreement and/or Note to McKesson
Corporation.
$147,900 Business Loan Agreement and/or Note to U.S. Small
Business Administration.
$90,000 Business Loan Agreement and/or Note to Anda, Inc.
$213,533 Business Loan Agreement and/or Note to Ford City
Pharmacy, Inc.
$5,643 Business Loan Agreement and/or Note to NewCo Capital
Group VI, LLC.
$6,300 Business Loan Agreement and/or Note to Fox Business
Capital.
$20,000 Business Loan Agreement and/or Note to Parmed
Pharmaceuticals.
As adequate protection, the appropriate secured parties are granted
replacement liens in all assets of the Debtor that are acquired or
received by the Debtor subsequent to the Petition Date, and
proceeds of same, to the same extent, priority, and validity as its
pre-petition liens, to the extent the Debtor's use of the cash
collateral results in a decrease in the value of such parties'
interest in the cash collateral.
The security interests granted are deemed perfected without the
necessity for filing or execution of documents which might
otherwise be required under non-bankruptcy law for the perfection
of said security interests. The security interests and perfection
will be binding, to the extent that the post-petition liens granted
replace properly perfected pre-petition liens, upon any
subsequently appointed trustee either in Chapter 11 or any other
Chapter of the Bankruptcy Code and upon all creditors of the Debtor
who have extended or who may hereafter extend credit to the Debtor
or the Debtor-in-Possession. As further adequate assurance the
Debtor will use its best efforts to negotiate monthly adequate
protection payments with its secured creditors.
The provisions of the Order and any actions taken pursuant thereto
will survive the entry of any order (i) converting the case to a
Chapter 7 case; or (ii) dismissing the case, and the terms and
provisions of the Order, as well as the Adequate Protection Liens
granted pursuant to the Order will continue in full force and
effect notwithstanding the entry of any such order, and such claims
and liens will maintain their priority as provided by the Order and
to the maximum extent permitted by law.
A copy of the Court's order and the Debtor's budget is available at
https://urlcurt.com/u?l=Ta3PdK from PacerMonitor.com.
The Debtor projects total expenses, on a monthly basis, as
follows:
$8,679 for June 2023;
$8,679 for July 2023;
$8,679 for August 2023;
$8,679 for September 2023; and
$8,679 for October 2023.
About Ford City RX, LLC
Ford City RX, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ala. Case No. 23-80761) on April 24,
2023. In the petition signed by Michael Keith Sigmon, managing
member, the Debtor disclosed up to $100,000 in assets and up to $1
million in liabilities.
Judge Clifton R. Jessup, Jr. oversees the case.
C. Taylor Crockett, Esq., at C. Taylor Crockett, P.C., represents
the Debtor as legal counsel.
FTX GROUP: Independent Examiner Fight Moves to Appeals Court
------------------------------------------------------------
Mat Di Salvo of Decrypt reports that the fight for an independent
examiner in FTX Group's bankruptcy case is moving to an appellate
court.
The case of collapsed crypto exchange FTX may soon involve an
independent examiner after a district court judge on May 31, 2023
escalated the request for one to the U.S. Third Circuit Court of
Appeals.
Legal filings show that Delaware District Judge Colm F. Connolly
approved passing the case further up the judicial chain on Tuesday,
May 30, 2023.
The move comes after the judge overseeing the entire bankruptcy
case, John Dorsey, said that appointing an independent examiner
would be too costly.
Even so, a bipartisan group of senators has called for an
independent examiner because they say the team put in place may not
provide an unbiased account of what happened.
Juliet Sarkessian, a representative for the U.S. Trustee, a branch
of the Department of Justice, has since pushed for an independent
examiner.
Following the collapse of the crypto behemoth company FTX in
November last year, prosecutors hit ex-boss Sam Bankman-Fried with
13 criminal charges, including committing wire fraud on customers
and conspiring to make unlawful political contributions He is also
accused of commingling client funds with those of sister trading
company Alameda Research.
Bankman-Fried—also known as SBF—was arrested in December and
initially charged by the Complex Frauds and Cybercrime Unit in the
Southern District of New York with eight financial crimes. He
denied them in January but was hit with further charges in
February.
Today, prosecutors said in court documents that some of the charges
could be dropped.
FTX was a huge crypto brand run from the Bahamas that allowed
customers to buy, sell and bet on the future price of
cryptocurrencies. But its higher-ups allegedly mismanaged the
company.
FTX's quick and unexpected collapse has since prompted lawmakers to
propose stricter regulations for the fast-moving and convoluted
crypto space, leading politicians to lock horns over how strictly
the industry should be interfered with.
About FTX Group
FTX is the world's second-largest cryptocurrency firm. FTX is a
cryptocurrency exchange built by traders, for traders. FTX offers
innovative products including industry-first derivatives, options,
volatility products and leveraged tokens.
Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that
FTX paused customer withdrawals after it was hit with roughly $5
billion worth of withdrawal requests.
Faced with liquidity issues, FTX on Nov. 9 struck a deal to sell
itself to its giant rival Binance, but Binance walked away from the
deal amid reports on FTX regarding mishandled customer funds and
alleged US agency investigations.
At 4:30 a.m. on Nov. 11, Bankman-Fried ultimately agreed to step
aside, and restructuring vet John J. Ray III was quickly named new
CEO.
FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc.
(d/b/a FTX US), Alameda Research Ltd. and certain affiliated
companies then commenced Chapter 11 proceedings (Bankr. D. Del.
Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022.
Additional entities sought Chapter 11 protection on Nov. 14, 2022.
FTX Trading and its affiliates each listed $10 billion to $50
million in assets and liabilities, making FTX the biggest
bankruptcy filer in the US this year. According to Reuters, SBF
shared a document with investors on Nov. 10, 2022, showing FTX had
$13.86 billion in liabilities and $14.6 billion in assets. However,
only $900 million of those assets were liquid, leading to the cash
crunch that ended with the company filing for bankruptcy.
The Hon. John T. Dorsey is the case judge.
The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel;
Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal
North America, LLC as financial advisor. Kroll is the claims agent,
maintaining the page https://cases.ra.kroll.com/FTX/Home-Index
The Official Committee of Unsecured Creditors tapped Paul Hastings
as counsel, FTI Consulting, Inc., as financial advisor, and
Jefferies LLC as the investment banker. Young Conaway Stargatt &
Taylor LLP is the Committee's Delaware and conflicts counsel.
Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory
T. Donilon, Edward L. Schnitzer, and David M. Banker, is
representing Sam Bankman-Fried in the Chapter 11 cases.
White-collar crime specialist Mark S. Cohen has reportedly been
hired to represent SBF in litigation. Lawyers at Paul Weiss
previously represented SBF but later renounced representing the
entrepreneur due to a conflict of interest.
FUSE GROUP: Sells $50K Convertible Promissory Note to Liu Marketing
-------------------------------------------------------------------
Fuse Group Holding Inc. entered into a Convertible Promissory Notes
Purchase Agreement with Liu Marketing (M) Sdn. Bhd., a company
organized under the laws of Malaysia, according to a Form 8-K filed
with the Securities and Exchange Commission.
Pursuant to the Agreement, the Company sold a Convertible
Promissory Note to the Purchaser with a principal amount of
$50,000. The Note bears interest at the rate of 3% per annum,
which are payable on May 29 of 2024 and 2025. The Note will mature
on the date that is 24 months from the date that the purchase price
of the Note is paid to the Company. Any outstanding principal and
interest on the Note may be converted to the shares of common stock
of the Company at the holder's option at a conversion price of
$0.45 per share at any time until the total outstanding balance of
the Note is paid. The Note was sold to the Purchaser pursuant to
an exemption from registration under Regulation S, promulgated
under the Securities Act of 1933, as amended.
About Fuse Group
Headquartered in Arcadia, CA, Fuse Group Holding Inc. currently
explores opportunities in mining. On Dec. 6, 2016, the Company
incorporated Fuse Processing, Inc. in the State of California.
Processing seeks business opportunities in mining and is currently
investigating potential mining targets in Asia and North America.
Fuse Group is the sole shareholder of Processing. Fuse Group
reported a net loss of $444,492 for the year ended Sept. 30, 2022,
compared to a net loss of $1.02 million for the year ended Sept.
30, 2021. As of Dec. 31, 2022, the Company had $130,069 in total
assets, $671,670 in total liabilities, and a total stockholders'
deficit of $541,601.
Diamond Bar, California-based KCCW Accountancy Corp., the Company's
auditor since 2022, issued a "going concern" qualification in its
report dated Dec. 28, 2022, citing that as of Sept. 30, 2022, the
Company had recurring losses from operations, an accumulated
deficit, and a negative cash flows from operating activities. As
such there is substantial doubt about its ability to continue as a
going concern.
G.A.H. BAR-B-Q: Amends Unsecured Claims Pay Details
---------------------------------------------------
G.A.H. Bar-B-Q, Inc., submitted a Final Subchapter V Plan of
Reorganization dated June 1, 2023.
Class 5 consists of all Allowed General Unsecured Claims against
the Debtor. In full satisfaction of their Allowed Class 5 General
Unsecured Claims, Holders of Class 5 Claims shall receive an annual
pro rata distribution of $20,000.00 on July 31st of each year
following entry of the Confirmation Order over a term of 3 years
from the Effective Date. The first Distribution to Class 5
Claimholders will occur on July 31, 2024.
In addition to the annual Distributions outlined herein, Class 5
Claimholders shall also receive a pro rata share of the net
proceeds recovered from all Causes of Action after payment of
professional fees and costs associated with such collection
efforts, and after Administrative Claims and Priority Claims are
paid in full. The maximum Distribution to Class 5 Claimholders
shall be equal to the total amount of all Allowed Class 5 General
Unsecured Claims. Class 5 is Impaired.
Class 6 consists of all equity interests in G.A.H. Bar-B-Q, Inc.
Class 6 Interest Holders shall retain their respective Interests in
G.A.H. Bar-B-Q, Inc. in the same proportions such Interest were
held as of the Petition Date (i.e., 100.00% Interest to Gregory A.
Helwig). Class 6 is Unimpaired.
The Plan contemplates the Debtor will continue to manage and
operate its business in the ordinary course, but with restructured
debt obligations and reduced overhead. It is anticipated the
Debtor's post-confirmation business will mainly involve continued
operation of its franchised Bar-B-Q restaurant and catering
business in Brevard County, any Disposable Income from such
operations will be committed to make the Plan Payments.
Funds generated from the Debtor's 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.
To support the Debtor's Plan obligations and as further support for
the Conditional Injunction, Mr. Helwig will remit a cash infusion
of $20,000.00 which will be contributed and utilized in accordance
with the distribution scheme.
A full-text copy of the Final Subchapter V Plan dated June 1, 2023
is available at https://urlcurt.com/u?l=0By0cb from
PacerMonitor.com at no charge.
Attorney for the Debtor:
Daniel A. Velasquez, Esq.
LATHAM, LUNA, EDEN & BEAUDINE, LLP
201 S. Orange Ave., Suite 1400
Orlando, Florida 32801
Tel: 407-481-5800
Fax: 407-481-5801
About G.A.H. Bar-B-Q
G.A.H. Bar-B-Q, Inc., operates a 156-seat Bar-B-Que restaurant in
Melbourne, Florida. The Debtor sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 23-00428) on
Feb. 3, 2023. In the petition signed by Gregory Helwig, sole
shareholder, the Debtor disclosed up to $10 million in assets and
up to $500,000 in liabilities.
Judge Tiffany P. Geyer oversees the case.
Daniel A. Velasquez, Esq., at Latham Luna Eden and Beaudine LLP, is
the Debtor's legal counsel.
GACE CONSULTING: Taps Wilk Auslander as Legal Counsel
-----------------------------------------------------
Gace Consulting Engineers, D.P.C. seeks approval from the U.S.
Bankruptcy Court for the Southern District of New York to employ
Wilk Auslander, LLP as its legal counsel.
The Debtor requires legal counsel to:
a. give advice with respect to the powers and duties of the
Debtor under the Bankruptcy Code;
b. prepare legal documents;
c. attend meetings and negotiate with representatives of
creditors and other parties involved in the Debtor's Chapter 11
case, attend court hearings, and advise the Debtor on the conduct
of its Chapter 11 case;
d. advise the Debtor regarding aspects of a plan confirmation
process, including, but not limited to, negotiating and drafting a
plan of reorganization and securing confirmation of the plan; and
e. perform all other necessary legal services for the Debtor.
The firm will be paid at these rates:
Partners $725 to $1,200 per hour
Of Counsel $675 to $725 per hour
Associates $450 to $690 per hour
Paralegals $330 to $435 per hour
In addition, the firm will receive reimbursement for out-of-pocket
expenses incurred.
The firm received from the Debtor a retainer of $35,000.
Eric Snyder, Esq., a partner at Wilk Auslander, disclosed in a
court filing that his firm is a "disinterested person" pursuant to
Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Eric J. Snyder, Esq.
Wilk Auslander, LLP
825 Eight Avenue, 29th Floor
New York, NY 10019
Tel: (212) 981-2300
About Gace Consulting
Gace Consulting Engineers DPC is a New York-based structural
engineering firm founded in 1979.
Gace Consulting Engineers filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. S.D.N.Y Case No.
23-10789) on May 17, 2023, with $2,924,588 in assets and $3,077,184
in liabilities. Samuel Dawidowicz has been appointed as Subchapter
V trustee.
Judge Lisa G. Beckerman oversees the case.
Eric J. Snyder, Esq., at Wilk Auslander, LLP is the Debtor's legal
counsel.
GEORGE XENAKIS: Mark Politan Named Subchapter V Trustee
-------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed Mark Politan, Esq.,
as Subchapter V trustee for George Xenakis D.D.S., Palisades Park
LLC.
Mr. Politan, an attorney at Politan Law, LLC, 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. Politan 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. Politan, Esq.
Politan Law, LLC
88 East Main Street #502
Mendham, NJ 07945
(973) 768-6072 - cell
Email: mpolitan@politanlaw.com
About George Xenakis
George Xenakis D.D.S., Palisades Park, LLC operates a dental clinic
in Palisades Park, N.J.
George Xenakis filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. D.N.J. Case No. 23-14320) on May 21,
2023, with $50,000 to $100,000 in assets and $1 million to $10
million in liabilities. Dr. George Xenakis, managing member, signed
the petition.
Rocco A. Cavaliere, Esq., at Tarter Krinsky & Drogin, LLP is the
Debtor's legal counsel.
GILBERT BARBEE: Exclusivity Period Extended to July 28
------------------------------------------------------
Judge Joan A. Lloyd of the U.S. Bankruptcy Court for the Western
District of Kentucky extended Gilbert, Barbee, Moore & McIlvoy
P.S.C.'s exclusive periods to file its Chapter 11 plan and
disclosure statement and to solicit acceptances thereof to July 28
and November 1, 2023, respectively.
Absent the extension, the deadline set by the Court for the Debtor
to file its disclosure statement and Chapter 11 plan was April 28,
2023.
As reported by the Troubled Company Reporter, the Debtor explained
that its bankruptcy proceedings involve an expansive business
operation with many millions of dollars of assets and liabilities,
and it has recently shifted its focus to manage the potential
resolution of some of the existing malpractice claims. The Debtor
also stated that it is in the process of negotiating potential
settlements with tort creditors, in order to maximize the benefit
to the bankruptcy estate.
The Debtor said it "needs additional time to work with parties in
interest to analyze all relevant issues before a plan and
disclosure statement can be submitted."
About Gilbert, Barbee, Moore & McIlvoy
Gilbert, Barbee, Moore & McIlvoy P.S.C. --
https://www.gravesgilbert.com/ -- is a multi-specialty clinic in
Bowling Green, KY. Graves Gilbert Clinic was founded in 1937 by
Dr. G.Y. Graves and Dr. Tom Gilbert.
Gilbert, Barbee, Moore & McIlvoy filed a petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. W.D. Ky. Case No.
22-10763) on Dec. 29, 2022. In the petition filed by Steven K.
Sinclair, as chief financial officer, the Debtor reported assets
and liabilities between $10 million and $50 million.
Gilbert, Barbee, Moore & McIlvoy P.S.C. is represented by:
Brian R. Pollock, Esq.
Alisa Micu, Esq.
STITES & HARBISON PLLC
400 West Market Street, Suite 1800
Louisville, KY 40202-3352
Tel: (502) 587-3400
Email: bpollock@stites.com
amicu@stites.com
- and -
Charity S. Bird, Esq.
KAPLAN JOHNSON ABATE & BIRD LLP
710 West Main Street, 4th Floor
Louisville, KY 40202
Tel: (502) 416-1630
Email: cbird@kaplanjohnsonlaw.com
GLOBAL AVIATION: Court OKs Interim Cash Collateral Access
---------------------------------------------------------
The U.S. Bankruptcy Court for the District of Kansas authorized
Global Aviation Technologies LLC to use cash collateral on an
interim basis in accordance with the budget.
The Debtor requires the use of cash collateral to fund continued
operations.
GAT began operating in 2002 and has operated through many ebbs and
flows of the aircraft industry impacted by the U.S. economy.
However, the changes to the U.S. economy from the COVID-19
pandemic, including how the Federal Aviation Authority administered
its regulations, caused GAT's operations to suffer significant
cash-flow issues.
To address those cash-flow problems, GAT took full advantage of
government-backed loan programs that were made available in
connection with the Coronavirus Aid. Relief, and Economic Security
Act, including the Payroll Protection Program Loan and the Economic
Injury Disaster Loan.
Despite obtaining the relief through the CARES Act, GAT continued
to suffer cash-flow and other financial problems from a variety of
factors, including changes made by the United States Department of
Defense in the administration of certain programs for the
maintenance of aircraft and the manufacturing of aircraft parts for
the U.S. Government.
To address those cash-flow issues, GAT obtained several merchant
capital advance loans from various lenders, including Credibly of
Arizona, LLC, Front Capital, WebBank, OKD Capital, LLC, Payroll
Funding Company, LLC, and Wynwood Capital Group LLC.
Conway Bank and the U.S. Small Business Administration claim lien
in all assets owned by GAT. As of the Petition Date, Conway was
owed approximately $3.2 million by GAT on the notes associated with
Conway's lien, with approximately $2.7 million subject to a
guaranty from the SBA.
The SBA may claim a separate security interest in GAT's assets as a
result of the EIDL that GAT obtained in November 2021. The balance
due on the SBA's EIDL is approximately $2 million.
Additionally, the MC Lenders claim liens on all GAT's assets and
specifically GAT's account receivables. On the Petition Date, the
MC Lenders are owed:
Lender Amount Owed
------ -----------
Credibly $273,906
Front $176,800
WebBank (2 loans) $191,980
OnDeck $292,632
PFC $138,370
Wynwood $127,765
-----------
Total $1,201,000
To the best of GAT's knowledge, there are no other lien claimants
who assert rights in cash collateral.
GAT intends to use Fidelity's cash collateral to pay expenses of
the operation of its business.
The events constitute an "Event of Default" include:
1) The failure to make any adequate protection payments to
Fidelity;
2) Expenditures in excess of the Budget with the variances as
specified in the Motion;
3) Expenditures not included in the Budget and not otherwise
approved by Fidelity in writing;
4) Incurrence after the Petition Date of credit or
indebtedness that is (i) secured by a security interest, mortgage,
or other lien on all or any portion of Fidelity's collateral which
is equal or senior to any security interest or other lien of
Fidelity, or (ii) entitled to priority administrative status which
is equal or senior to that granted to Fidelity;
5) Entry of a Court order, other than the Interim Cash
Collateral Order, granting relief from or modifying the automatic
stay 11 U.S.C. Section 362 (i) to allow any creditor to execute
upon or enforce a lien on or security interest in any cash
collateral, or (ii) with respect to any lien of or the granting of
any lien on any cash collateral to any state or local environmental
or regulatory agency or authority, which in either case would have
a material adverse effect on the business, operations, property,
assets, or condition, financial or otherwise, of GAT;
6) Dismissal of the case or conversion of the case to Chapter
7 case, or appointment of a Chapter 11 trustee or examiner with
enlarged powers or other responsible person;
7) Upon written notice from Fidelity of any material
misrepresentation of a material fact made after the Petition Date
by GAT about its financial condition, the nature, extent, location
or quality of any Collateral, or the disposition or use of any
Collateral, including cash collateral; and
8) The sale after the Petition Date of any portion of any of
GAT's assets outside the ordinary course of its business unless
otherwise approved by Fidelity in writing or by the Bankruptcy
Court.
In addition to the adequate protection payments specified in the
Budget of $3,440 a month, Fidelity will receive an additional and
replacement security interests interests and liens, in the same
priority as existed pre-petition, in and upon all of the
pre-petition collateral and all of the Debtor's now-owned and
after-acquired assets and rights of any kind or nature.
A final hearing on the matter is set for June 8, 2023 at 10:30
a.m.
A copy of the Court's order and the Debtor's budget is available at
https://urlcurt.com/u?l=QlBYWg from PacerMonitor.com.
About Global Aviation Technologies LLC
Global Aviation Technologies LLC sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. D. Kan. Case No. 23-10111) on
February 20, 2023. In the petition signed by Candace Cottner,
managing member and director of finance, the Debtor disclosed up to
$500,000 in assets and up to $50 million in liabilities.
Judge Mitchell L. Herren oversees the case.
Nicholas R. Grillot, Esq., at Hinkle Law Firm LLC, represents the
Debtor as legal counsel.
GLOBAL TEE: Court OKs Interim Cash Collateral Access
----------------------------------------------------
The U.S. Bankruptcy Court for the Western District of Michigan
authorized Global Tee Company, LLC to use cash collateral on an
interim basis in accordance with the budget.
The Debtor requires the use of cash collateral for cash
expenditures listed on the budget.
As previously reported by the Troubled Company Reporter, the
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.
As adequate protection, all creditors claiming a security interest
in the cash collateral are granted 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 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 creditors an
interest in any property in which the creditor did not have a
properly perfected security interest as of the Petition Date.
The Debtor will maintain the total value of cash collateral at no
less than the value of the cash collateral as of the Petition
Date.
A final hearing on the matter is set for June 29, 2023 at 10 a.m.
A copy of the order is available at https://urlcurt.com/u?l=LaxiUI
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.
GOLESIS PROPERTIES: Brian Rothschild Named Subchapter V Trustee
---------------------------------------------------------------
The U.S. Trustee for Region 19 appointed Brian Rothschild, Esq., as
Subchapter V trustee for Golesis Properties, LLC.
Mr. Rothschild, an attorney at Parsons Behle & Latimer, will be
paid an hourly fee of $430 for his services as Subchapter V trustee
and will be reimbursed for work-related expenses incurred.
Mr. Rothschild declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Brian M. Rothschild, Esq.
Parsons Behle & Latimer
201 South Main Street, Suite 1800
Salt Lake City, UT 84111
Phone: (801) 532-1234
Email: brothschild@parsonsbehle.com
About Golesis Properties
Golesis Properties, LLC filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. D. Utah Case No.
23-22042) on May 19, 2023, with $500,001 to $1 million in both
assets and liabilities. Judge Peggy Hunt oversees the case.
The Debtor is represented by Andres Diaz, Esq., at Diaz & Larsen.
GOLYAN ENTERPRISES: Taps Law Offices of Avrum J. Rosen as Counsel
-----------------------------------------------------------------
Golyan Enterprises, LLC seeks approval from the U.S. Bankruptcy
Court for the Eastern District of New York to employ The Law
Offices of Avrum J. Rosen, PLLC.
The Debtor requires legal counsel to:
(a) give advice regarding the rights and duties of the Debtor
under the Bankruptcy Code;
(b) oversee the preparation of necessary reports to the courts
or creditors;
(c) conduct all appropriate investigation or litigation; and
(d) perform any other necessary duty in aid of the
administration of the Debtor's estate.
The firm will be paid at these rates:
Partners $670 per hour
Associates $395 to $570 per hour
Paralegals $150 to $200 per hour
In addition, the firm will receive reimbursement for out-of-pocket
expenses incurred.
As disclosed in court filings, The Law Offices of Avrum J. Rosen is
a "disinterested person" pursuant to Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Nico G. Pizzo, Esq.
Avrum J. Rosen, Esq.
The Law Offices of Avrum J. Rosen, PLLC
38 New Street
Huntington, NY 11743
Telephone: (631) 423-8527
Email: npizzo@ajrlawny.com
arosen@ajrlawny.com
About Golyan Enterprises
Golyan Enterprises, LLC owns a residential apartment building
located at 99-44 62nd Ave., Rego Park, N.Y. The property is valued
at $12 million.
Golyan Enterprises filed its voluntary petition for Chapter 11
protection (Bankr. E.D.N.Y. Case No. 23-41647) on May 11, 2023,
with $12,000,500 in assets and $10,472,736 in liabilities.
Faraidoon Golyan, co-managing member, signed the petition.
Judge Nancy Hershey Lord oversees the case.
The Law Offices of Avrum J. Rosen, PLLC serves as the Debtor's
bankruptcy counsel.
HEART OF TEXAS: Seeks Cash Collateral Access
--------------------------------------------
Heart of Texas Shooting Center, LLC and HOTSC Holdings, LLC ask the
U.S. Bankruptcy Court for the Western District of Texas, Waco
Division, for authority to use cash collateral to continue
operating its business.
The Debtors suffered a decline in business resulting from the
COVID-19 pandemic, the current inflation and economic downturn. The
Debtors' business depends on sale of memberships and sale of items
within the store. The Debtors have experienced reduced in store
sales. The decline in income resulted in a default under its debt
to First National Bank of McGregor which posted the property where
Debtor operates its business for foreclosure. Debtor HOTSC
Holdings, LLC owns the real estate while Heart of Texas Shooting
Center, LLC operates the business.
Two creditors have filed UCC-1 financing statements, although only
one of them is owed money.
Sports South, LLC filed a UCC financing statement on August 23,
2021. It has been paid down from original principal.
The First National Bank of McGregor dba TFNB Your Bank for Life
filed a filed a UCC financing statement on October 28, 2020. The
Debtor is indebted to the bank in the amount of $2.2 million.
As adequate protection, the Debtor proposes:
a. making periodic cash payments to the extent that the
creditor suffers a decrease in the value of its interest in such
property;
b. granting replacement liens in collateral to compensate the
creditor for any decrease in the value of the creditor's interest
in such property; or
c. granting other relief as will result in the realization of
the indubitable equivalent of the creditor's interest in
collateral.
Additionally, the presence of an equity cushion may be sufficient
to provide adequate protection.
The Debtor proposes to provide adequate protection to the parties
with an interest in cash collateral in the following manner.
a. The Debtor will provide all creditors with an interest in
cash collateral with a replacement lien upon assets obtained
post-petition to the same extent, priority and validity as their
pre-petition liens.
b. The Debtor will maintain insurance upon its assets.
A copy of the motion and the Debtor's budget is available at
https://urlcurt.com/u?l=fVhUeb from PacerMonitor.com.
The Debtor projects total expenses, on a weekly basis, as follows:
$12,150 for the week ending June 10, 2023;
$7,550 for the week ending June 17, 2023; and
$12,90 for the week ending June 242023.
About Heart of Texas Shooting Center, LLC
Heart of Texas Shooting Center, LLC provides an indoor shooting
range and associated services and goods to its customers.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Tex. Case No. 23-60263) on June 2,
2023.
In the petition signed by Eric Nutt, manager, the Debtor disclosed
up to $500,000 in assets and up to $10 million in liabilities.
Stephen W Sather, Esq., at Barron & Newburger, P.C., represents the
Debtor as legal counsel.
HONX INC: Unsecured Creditors to Recover Nothing
------------------------------------------------
Honx, Inc., submitted a Chapter 11 Plan of Reorganization and a
Disclosure Statement.
The Plan follows arms'-length, extensive, and (many times)
contentious formal mediation proceedings, as well as months of
informal negotiations among the Debtor, Hess Corporation ("Hess")
as parent company to the Debtor, the Official Committee of
Unsecured Creditors (the "Committee") and Burns Charest LLP in its
capacity as counsel to certain Holders of Asbestos Claims ("Burns
Charest"), culminating in a comprehensive settlement between the
Debtor, Hess , the Committee (collectively, the "Plan Parties"),
and Burns Charest to resolve all present and future Asbestos Claims
against the Debtor (the "Plan Settlement"). The Debtor is
soliciting votes for acceptance of the Plan from Holders of Claims
in Class 3.
The Plan will result in a permanent resolution of all current and
future asbestos personal injury claims (defined in the Plan as the
"Asbestos Claims") against the Debtor and, to the maximum extent
permitted under section 524(g) of the Bankruptcy Code, Hess. The
centerpiece of the Plan is the establishment of a trust under
Section 524(g) of the Bankruptcy Code (defined in the Plan as the
"Asbestos Trust") to process and pay Asbestos Claims pursuant to
certain distribution procedures adopted by the Asbestos Trust
(defined in the Plan as the "Asbestos Trust Distribution
Procedures"), the form of which will be included in the Plan
Supplement and is incorporated herein by reference. In exchange for
funding the Asbestos Trust, HONX and Hess, as well as certain
additional parties (defined collectively in the Plan as the
"Protected Parties") will be protected by a permanent injunction
(defined in the Plan as the "Asbestos Permanent Channeling
Injunction") that will prohibit any party from asserting an
Asbestos Claim against a Protected Party and will channel all
Asbestos Claims to the Asbestos Trust. The scope of the injunction
will cover all Asbestos Claims against the Protected Parties.
The effect of "channeling" Asbestos Claims to the Asbestos Trust
through the Asbestos Permanent Channeling Injunction is that the
channeled Asbestos Claims may be pursued through, and paid from,
the Asbestos Trust and may not be asserted against the Reorganized
Debtor or any of the other Protected Parties.
The Asbestos Trust will be funded with Cash totaling $106,000,000,
with a commitment by Hess to fund up to an additional $10,000,000
if valid payments from the Asbestos Trust to Entities that may
subsequently assert a Demand (as defined in section 524(g) of the
Bankruptcy Code) after the Effective Date (each such demand holder,
a "Future Demand Holder") exceed $15,000,000 in the first
seven-year period following the Effective Date and there remain
outstanding additional Allowed Asbestos Claims held by Future
Demand Holders. The Asbestos Trust will be administered by one or
more trustees (collectively, the "Asbestos Trustee"). The Asbestos
Trust will assume sole responsibility for paying Allowed Asbestos
Claims (including, for the avoidance of doubt, any Allowed Asbestos
Claims held by Future Demand Holders) and the Asbestos Trust
Expenses, with $1,000,000 of the total Cash funded to the Asbestos
Trust for the costs of operating the Asbestos Trust in connection
with Future Demand Holders.
Holders of Asbestos Claims in Class 3 are the only claimants
entitled to vote on the Plan. The rights of all other Holders of
Claims against and Interests in the Debtor are either not Impaired
by the Plan and conclusively deemed to have accepted the Plan
pursuant to section 1126(f) of the Bankruptcy Code or Impaired by
the Plan and conclusively deemed to have rejected the Plan pursuant
to section 1126(g) of the Bankruptcy Code, and, in each case, the
Holders of such Claims and Interests are not entitled to vote on
the Plan. The Holders of Claims and Interests that are not entitled
to vote on the Plan are directed to other portions of this
Disclosure Statement and the Plan for a more detailed discussion of
the treatment of their respective Claims and Interests.
On the Effective Date, the Asbestos Trust shall be established in
accordance with the Plan Documents, the Asbestos Trust Documents,
and section 524(g) of the Bankruptcy Code and managed pursuant to
the terms and conditions of the Asbestos Trust Documents. On the
Effective Date, the Asbestos Records Cooperation Agreement shall
become effective and the Debtor's Asbestos Records shall be treated
in accordance therewith. The Asbestos Trust will be funded as of
the Plan's Effective Date with assets worth $106,000,000 as a
result of the following Initial Trust Payment:
* On the Effective Date:
- Hess will transfer $90,000,000 in Cash to the Asbestos Trust
on account of Allowed Current Asbestos Claims;
- Hess will transfer $15,000,000 to the Asbestos Trust on
account of Allowed Asbestos Claims, if any, held by Future Demand
Holders; and
- Hess will also contribute $1,000,000 for administrative
expenses of Asbestos Claims submitted by Future Demand Holders.
* If the $15,000,000 of the Initial Trust Payment that is on
account of Allowed Asbestos Claims asserted by Future Demand
Holders is exhausted by payment of Allowed Asbestos Claims for
Future Demand Holders within the first seven-year period after the
establishment of the Asbestos Trust and Allowed Asbestos Claims for
Future Demand Holders remain unpaid, the Future Demands Note issued
on the Effective Date will be paid to the Asbestos Trust.
* If, on the other hand, any amount of the $15,000,000 of the
Initial Trust Payment remains after the seven-year period and all
Allowed Asbestos Claims for Future Demand Holders have been paid in
full, the Future Demands Note issued on the Effective Date will not
be paid to the Asbestos Trust and the Future Demands Note, along
with the remainder of any of the $15,000,000 set aside for Allowed
Asbestos Claims of Future Demand Holders, will revert back to Hess;
provided that the Bankruptcy Court enters a Final Order that states
that all Future Demand Holders have been paid in full.
* Hess will contribute all amounts reasonably necessary to the
Asbestos Trust to fund reasonable and documented diagnostic costs
associated with Asbestos Claims, subject to the protocol
established under the Asbestos Trust Documents, submitted by Future
Demand Holders.
* Hess will fund the Initial Trust Payment and issue the Future
Demands Note on the Effective Date of the Plan.
* The Debtor will contribute 50.1 percent of the New Common
Equity of the Reorganized Debtor to the Asbestos Trust.
Under the Plan, Class 4 General Unsecured Claims will recover 0% of
their claims. Class 4 is impaired.
The Plan voting deadline is Aug. 21, 2023, at 4:00 p.m., prevailing
Central Time. The Bankruptcy Court has scheduled the confirmation
hearing for Oct. 10, 2023, at 9:00 a.m., prevailing Central Time.
Objections to confirmation must be filed and served on the Debtor,
and certain other parties, by no later than Aug. 21, 2023, at 4:00
p.m., prevailing Central Time.
Co-Counsel to the Debtor:
Matthew D. Cavenaugh, Esq.
Jennifer F. Wertz, Esq.
Veronica A. Polnick, Esq.
JACKSON WALKER LLP
1401 McKinney Street, Suite 1900
Houston, TX 77010
Telephone: (713) 752-4200
Facsimile: (713) 752-4221
E- mail: mcavenaugh@jw.com
jwertz@jw.com
vpolnick@jw.com
- and -
Christopher T. Greco, Esq.
Matthew C. Fagen, Esq.
KIRKLAND & ELLIS LLP
KIRKLAND & ELLIS INTERNATIONAL LLP
601 Lexington Avenue
New York, NY 10022
Telephone: (212) 446-4800
Facsimile: (212) 446-4900
Email: christopher.greco@kirkland.com
matthew.fagen@kirkland.com
- and -
Whitney C. Fogelberg, Esq.
Jaimie Fedell, Esq.
KIRKLAND & ELLIS LLP
KIRKLAND & ELLIS INTERNATIONAL LLP
300 North LaSalle
Chicago, IL 60654
Telephone: (312) 862-2000
Facsimile: (312) 862-2200
E-mail: whitney.fogelberg@kirkland.com
jaimie.fedell@kirkland.com
- and -
Michael F. Williams, Esq.
Daniel T. Donovan, Esq.
Alexandra I. Russell, Esq.
KIRKLAND & ELLIS LLP
KIRKLAND & ELLIS INTERNATIONAL LLP
1301 Pennsylvania Ave., N.W.
Washington, D.C. 20004
Telephone: (202) 389-5000
Facsimile: (202) 389-5200
E-mail: michael.williams@kirkland.com
daniel.donovan@kirkland.com
alexandra.russell@kirkland.com
A copy of the Disclosure Statement dated May 24, 2023, is available
at bit.ly/3N2pMCE from Stretto, the claims agent.
About HONX Inc.
HONX Inc. is a subsidiary of Hess Corporation, a publicly-traded
global energy company. HONX is the corporate successor of Hess Oil
Virgin Islands Corporation, which owned and operated an oil
refinery in St. Croix, U.S. Virgin Islands from the beginning of
its construction in 1965 until a non-operating entity with minimal
assets consisting primarily of a 50% ownership in a joint venture
from 1998 to 2016, and post-2016 it has continued its corporate
existence solely to manage its alleged asbestos liabilities related
to the refinery.
HONX sought Chapter 11 bankruptcy protection (Bankr. S.D. Texas
Case No. 22-90035) on April 28, 2022. In the petition signed by
Todd R. Snyder, chief administrative officer, the Debtor disclosed
$10 million to $50 million in assets and $500 million to $1 billion
in liabilities.
Judge Marvin Isgur oversees the case.
The Debtor tapped Kirkland & Ellis and Jackson Walker, LLP as
bankruptcy counsels; Piper Sandler Companies/TRS Advisors, LLC as
investment banker and financial advisor; and Bates White, LLC as
asbestos consultant. Stretto, Inc. is the claims, noticing and
solicitation agent.
The Honorable Barbara J. Houser (Ret.) was appointed as the legal
representative for future asbestos claimants in this Chapter 11
case. Ms. Houser tapped Young Conaway Stargatt & Taylor, LLP as
bankruptcy counsel; O'ConnorWechsler, PLLC as local counsel; FTI
Consulting, Inc., as financial advisor; and NERA Economic
Consulting as consultant.
HOODSTOCK ENTERPRISES: U.S. Trustee Unable to Appoint Committee
---------------------------------------------------------------
The U.S. Trustee for Region 18 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of Hoodstock Enterprises, LLC.
About Hoodstock Enterprises
Hoodstock Enterprises, LLC sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. D. Ore. Case No. 23-31080) on May 14,
2023, with $1 million to $10 million in assets and $100,001 to
$500,000 in liabilities. Judge Teresa H. Pearson oversees the
case.
Nicholas J. Henderson, Esq., at Motschenbacher & Blattner, LLP, is
the Debtor's legal counsel.
HTG MOLECULAR: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: HTG Molecular Diagnostics, Inc.
3430 E Global Loop
Tucson, AZ 85706
Business Description: HTG Molecular is a life science company
whose mission is to advance precision
medicine through its transcriptome-wide
profiling technology and advanced medicinal
chemistry technology.
Chapter 11 Petition Date: June 5, 2023
Court: United States Bankruptcy Court
District of Delaware
Case No.: 23-10732
Judge: Hon. J. Kate Stickles
Debtor's Counsel: Frederick B. Rosner, Esq.
THE ROSNER LAW GROUP, LLC
824 N Market St
Suite 810
Wilmington, DE 19801
Tel: (302) 777-1111
Email: rosner@teamrosner.com
Total Assets as of May 31, 2023: $6,693,254
Total Debts as of May 31, 2023: $8,997,813
The petition was signed by Shaun McMeans, senior vice president and
chief financial officer.
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/MFQPJDY/HTG_Molecular_Diagnostics_Inc__debke-23-10732__0001.0.pdf?mcid=tGE4TAMA
HUB INTERNATIONAL: S&P Affirms 'B' Long-Term ICR, Outlook Stable
----------------------------------------------------------------
S&P Global Ratings affirmed its 'B' long-term issuer credit rating
on Chicago-based middle-market insurance broker Hub International
Ltd. The outlook is stable.
S&P said, "At the same time, we assigned our 'B' debt rating to the
company's proposed $4.25 billion term loan B maturing 2030. The
recovery rating is '3' for the loan, which indicates that we expect
meaningful recovery (50%-70%; rounded estimate: 50%) in the event
of a payment default.
"At the same time, we raised our debt ratings on Hub's senior
unsecured notes due 2026 and 2029 to 'B-' from 'CCC+,' as we now
expect modest recovery (10%-30%; rounded estimate: 10%) in the
event of payment default (from a negligible recovery of about 5%
previously).
"We affirmed the rating because we expect Hub's financial leverage
to remain roughly flat and within our expectations on a run-rate
basis following the proposed transaction. Pro forma leverage and
coverage for the 12 months through first-quarter 2023 are 7.2x and
2.1x, respectively. We expect Hub to operate with leverage, as
measured by debt to EBITDA, in line with our updated run-rate
expectation of 6.5x–7.0x by year-end 2023. Accordingly, we
consider this deal to be essentially leverage neutral and modestly
beneficial to the company's liquidity position.
"We expect proceeds from this transaction (together with new senior
secured financing to launch during the loan syndication period) to
be used to refinance existing debt, fund pipeline acquisitions, and
for deal expenses." Hub benefits from its established market
presence, relatively narrow business scope, and growing scale via
acquisition activity. However, it operates in the fragmented,
cyclical, and highly competitive insurance brokerage industry,
which continues to experience consolidation, mainly through a group
of middle-market focused peers.
S&P expects a sizable increase in interest expense through 2024 for
the company's variable-rate debt, which represents about 50% of its
capital structure following the transaction (excluding hedges
expiring in 2024). Also, the company plans to extend the maturities
of its $500 million and C$130 million revolving credit facilities
to June 2028 from January 2025 and increase the USD facility by
$200 million. Hub's balance sheet is highly leveraged and
credit-protection metrics are weak, stemming primarily from the
company's acquisitive (and debt-intensive) growth strategy.
Outlook
S&P said, "Our stable outlook reflects our view of limited
potential for rating changes over the next 12 months. It also
reflects our expectation that the company's growing scale and
steady performance will drive sustained earnings and improved cash
flow. We expect reported revenue to grow 10%-15% per year through
2024, supported by organic growth of 6%-7% and an adjusted EBITDA
margin near 35%. We expect Hub to remain highly leveraged, with a
debt-to-EBITDA ratio of 6.5x-7.0x and EBITDA coverage of about 2x
through 2024."
Downside scenario
S&P could lower its ratings within the next 12 months if organic
growth or cash-flow generation deteriorates, indicating strained
strategic execution. Under this scenario, weaker performance would
result in diminished credit-protection measures, with leverage
above 8.5x and EBITDA interest coverage materially below 2.0x on a
sustained basis.
Upside scenario
S&P could raise its ratings within the next 12 months if Hub
improves its competitive position relative to peers or if it
sustainably brings leverage below 6x and EBITDA coverage above 3x.
INTERNAP HOLDING: Amends Unsecured Claims Details
-------------------------------------------------
Internap Holding LLC, et al., submitted a First Amended Disclosure
Statement for the First Amended Joint Chapter 11 Plan dated June 1,
2023.
The Plan contemplates that the holders of Second Out Term Loans
(the "SOTL Loans”) will convert all of their SOTL Loans into
equity, eliminating approximately $127.8 million of secured debt
from INAP's balance sheet. In addition, certain of the holders of
SOTL Loans have agreed to provide the Debtors with an exit facility
in an amount up to $30 million on the Effective Date of the Plan.
Holders of approximately 67% of the SOTL Loans in dollar amount and
more than 60% in number (collectively, the "Consenting Lenders")
have executed a Restructuring Support Agreement (as it may be
amended from time to time, the "RSA") in which they have agreed to,
among other things, support the Plan.
In addition to the debt-for-equity exchange with the holders of the
Debtors' SOTL Loans, other key terms of the Plan include full
payment of all administrative and priority claims, if any. Other
unsecured creditors will not receive a distribution under the Plan.
The Debtors submit that the proposed Plan meaningfully reduces the
Debtors' aggregate secured debt, maximizes recoveries, ensures the
Debtors will continue as a going-concern preserving jobs for the
Debtors' employees, and best positions the Debtors for future
success.
Class 4 consists of all General Unsecured Claims. All General
Unsecured Claims will receive no distribution under the Plan. Class
4 is Impaired under the Plan and such Holders are conclusively
presumed to have rejected the Plan pursuant to section 1126(g) of
the Bankruptcy Code. Holders of General Unsecured Claims are not
entitled to vote to accept or reject the Plan.
All Existing Equity Interests will be cancelled, released, and
extinguished as of the Plan Effective Date, and Holders of Existing
Equity Interests shall not receive or retain any property under the
Plan on account of such Existing Equity Interests.
The Reorganized Company will fund distributions under the Plan with
Cash held on the Effective Date by or for the benefit of the
Debtors or Reorganized Company, including Cash from operations, the
New Term Loan Exit Facility, proceeds from all Causes of Action not
settled, released, discharged, enjoined, or exculpated under the
Plan or otherwise on or prior to the Effective Date, and the New
Common Stock.
To the extent a counterparty to an assumed Executory Contract or
Unexpired Lease asserts that amounts are due under such Executory
Contract or Unexpired Lease that first became due after such
counterparty's receipt of the cure amount notice but before the
Effective Date, such counterparty may file an application with the
Bankruptcy Court for the payment of that amount by the
Administrative Bar Date or shall be forever barred from asserting
such claim.
Payment of United States Trustee Quarterly Fees
All fees due and payable pursuant to section 1930 of Title 28 of
the U.S. Code together with the statutory rate of interest set
forth in section 3717 of Title 31 of the U.S. Code to the extent
applicable ("Quarterly Fees") prior to the Effective Date shall be
paid by the Debtors on the Effective Date. After the Effective
Date, the Debtors, the Reorganized Debtors and the Disbursing Agent
shall be jointly and severally liable to pay any and all Quarterly
Fees when due and payable. The Debtors shall file all monthly
operating reports due prior to the Effective Date when they become
due, using UST Form 11-MOR.
After the Effective Date, each of the Reorganized Debtors and the
Disbursing Agent shall file with the Bankruptcy Court separate UST
Form 11-PCR reports when they become due. Each and every one of the
Debtors, the Reorganized Debtors and the Disbursing Agent shall
remain obligated to pay Quarterly Fees to the Office of the U.S.
Trustee until the earliest of that particular Debtor's case being
closed, dismissed, converted to a case under Chapter 7 of the
Bankruptcy Code. The U.S. Trustee shall not be required to file any
Administrative Claim in the case, and shall not be treated as
providing any release under the Plan.
A full-text copy of the First Amended Disclosure Statement dated
June 1, 2023 is available at https://urlcurt.com/u?l=PcYJIU from
Stretto, Inc., claims agent.
Counsel to the Debtors:
Catherine Steege, Esq.
Melissa Root, Esq.
Breana Drozd, Esq.
JENNER & BLOCK LLP
353 North Clark Street
Chicago, IL 60654
Tel: (312) 923-2952
E-mail: csteege@jenner.com
mroot@jenner.com
bdrozd@jenner.com
- and -
Mark Minuti, Esq.
Monique B. DiSabatino, Esq.
SAUL EWING LLP
1201 North Market Street, Suite 2300, P.O. Box 1266
Wilmington, DE 19899
Tel: (302) 421-6800
E-mail: mark.minuti@saul.com
monique.disabatino@saul.com
About Internap Holding
Internap Holding LLC and its affiliates provide compute resources
(i.e., an IT industry term referring to the ability to process
data) and storage services on demand via an integrated platform.
Their services include: (a) bare metal which are dedicated,
single-tenant servers utilizing Intel and AMD processors enabling
high-performance compute with rapid deployment, increased control,
enhanced security, and flexible configurations); (b) hosted private
cloud environments; (c) cloud computing backup services; and (d)
managed security to keep customer data secure and in alignment with
compliance requirements.
Internap Holding LLC and its affiliates sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case
No. 23-10529) on April 28, 2023. In the petition signed by Michael
T. Sicoli, chief executive officer, the Debtor disclosed up to $500
million in both assets and liabilities.
Judge Craig T. Goldblatt oversees the case.
The Debtors tapped Saul Ewing LLP and Jenner and Block LLP, as
legal counsel, FTI Consulting as financial advisor, and Stretto,
Inc., as claims and noticing agent.
IYS VENTURES: Files Bare-Bones Chapter 11 Petition
--------------------------------------------------
IYS Ventures LLC filed for chapter 11 protection in the Northern
District of Illinois without stating a reason.
According to court filings, IYS Ventures estimates between $1
million and $10 million in debt owed to 60 to 99 creditors. The
petition states that funds will not be available to unsecured
creditors.
A telephonic meeting of creditors under 11 U.S.C. Section 341(a) is
slated for June 22, 2023, at 1:30 p.m.
The Debtor filed a motion to extend until June 16, 2023, its
deadline to file its schedules and statements. Due to time
constraints, scheduling conflicts and the voluminous documents and
information needed to be reviewed, the Debtor and its attorneys
have been unable to complete the
Chapter 11 schedules and statement of financial affairs.
About IYS Ventures
IYS Ventures LLC filed a petition for relief under Chapter 11 of
the Bankruptcy Code (Bankr. N.D. Ill. Case No. 23-06782) on May 23,
2023. In the petition filed by Muwafak Rizek, as manager and
member, the Debtor reported assets between $1 million and $10
million and liabilities between $10 million and $50 million.
Honorable Bankruptcy Judge David D. Cleary oversees the case.
The Debtor is represented by:
Gregory K Stern, Esq.
Gregory K. Stern, P.C.
15416 South 70th Court
Orland Park, IL 60462
Tel: (312) 427-1558
Fax: (312) 427-1289
Email: greg@gregstern.com
J.A.R. CONCRETE: Taps State Street as Appraiser
-----------------------------------------------
J.A.R. Concrete, Inc. seeks approval from the U.S. Bankruptcy Court
for the Western District of Texas to employ State Street
Appraisals, LLC to conduct an appraisal of its machineries and
equipment.
The firm will receive a flat fee of $9,800 to be paid in advance,
which is borne by the Debtor and its affiliate Paso Del Norte
Materials, LLC, in a ratio of 40 percent to the Debtor and 60 per
cent to Paso Del Norte.
Sean Kelley, president of State Street Appraisals, disclosed in a
court filing that his firm is a "disinterested person" pursuant to
Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Sean Kelley
State Street Appraisals, LLC
22911 Trailwood Lane
Tomball, TX 77375
Tel: (713) 471-2834
Email: skelleytx@statestreetappraisals.com
About J.A.R. Concrete
J.A.R. Concrete, Inc., a company in El Paso, Texas, filed its
voluntary petition for Chapter 11 protection (Bankr. W.D. Texas
Case No. 23-30242) on March 14, 2023, with as much as $1 million to
$10 million in both assets and liabilities. Joe A. Rosales, Jr.,
president, director and shareholder of J.A.R. Concrete, signed the
petition.
Judge H. Christopher Mott oversees the case.
E.P. Bud Kirk, Esq., a practicing attorney in El Paso, Texas, and
Griffith Davison, P.C. serve as the Debtor's bankruptcy counsel and
special counsel, respectively.
KCIBT HOLDINGS: S&P Downgrades ICR to 'SD' on Debt Amendments
-------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on KCIBT
Holdings L.P. (CIBT) to 'SD' (selective default) from 'CCC'. At the
same time, S&P lowered its issue-level rating on the senior secured
first-lien credit facilities to 'D' from 'CCC' and its issue-level
rating on its senior secured second-lien facility to 'D' from
'CC'.
The downgrade follows the completion of CIBT's distressed credit
agreement amendments with its lenders. The transaction extends the
PIK and cash interest relief periods instituted under 2021
amendments by five quarters through June 30, 2024 for its secured
credit facilities and also extends the loan maturities to 2026 from
2025. The amendments allow CIBT to partially pay-in-kind the
interest (4.25% PIK/SOFR +1.0% cash pay) due on its first-lien term
loan until June 30, 2024, and waive the interest payments due on
its second-lien term loan until at least March 31, 2025. The
company also extended the maturity date of the first-lien facility
to May 15, 2026, and the maturity date of the second-lien term loan
to Dec. 1, 2026.
S&P views the transaction as distressed and tantamount to a default
because its creditors received less value than they were initially
promised under the original securities. Its assessment reflects the
following features of the transaction:
-- The new debt's maturity dates extend beyond those of the
original instruments; and
-- The timing of the payments is slowed.
S&P said, "In addition, we believe CIBT would likely have faced a
conventional default absent the debt restructuring, given the tight
liquidity as the interest relief period and debt amortization
holiday were set to expire on March 31, 2023.
"We will reassess our ratings on CIBT and its debt in the coming
days to determine the risk of a conventional or selective default.
Our review will focus on the long-term viability of CIBT's capital
structure and liquidity position given our view of CIBT's travel
visa volumes recovery and immigration services performance over the
next two years."
KDP LLC: Natasha Songonuga Named Subchapter V Trustee
-----------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed Natasha Songonuga,
Esq., as Subchapter V trustee for KDP, LLC and its affiliates.
Ms. Songonuga, an attorney at Gibbons, P.C., will be paid an hourly
fee of $450 for her services as Subchapter V trustee and will be
reimbursed for work-related expenses incurred.
Ms. Songonuga declared that she is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Natasha Songonuga, Esq.
Gibbons, P.C.
300 Delaware Avenue, Suite 1015
Wilmington, DE 19801-1671
Office: (302) 518 6324
Mobile: (302) 332-9972
Fax: (302) 397-2139
Email: nsongonuga@gibbonslaw.com
About KDP LLC
KDP, LLC is an investment adviser registered with the SEC
specializing in the management of high yield bonds and leveraged
loans with a strong focus on rigorous, bottom-up credit analysis.
KDP and its affiliates, KDP Investment Advisors, Inc. and KDP Asset
Management, Inc., sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Lead Case No. 23-10662) on May 21,
2023. At the time of the filing, KDP disclosed $1 million to $10
million in both assets and liabilities.
Judge J. Kate Stickles oversees the case.
Bielli and Klauder, LLC represents the Debtor as legal counsel.
Obra Institutional Credit, LLC, as lender, is represented by Potter
Anderson & Corroon, LLP.
KPG REVENUE: Edward Burr Named Subchapter V Trustee
---------------------------------------------------
The U.S. Trustee for Region 17 appointed Edward Burr as Subchapter
V trustee for KPG Revenue Cycle Management, Inc.
Mr. Burr 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. Burr declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Edward Burr
10191 E. Shangri La Road
Scottsdale, AZ 85260
Phone: (602) 418-2906
Email: Ted@macrestructuring.com
About KPG Revenue
KPG Revenue Cycle Management, Inc. filed a petition under Chapter
11, Subchapter V of the Bankruptcy Code (Bankr. D. Nev. Case No.
23-12013) on May 19, 2023, with as much as $50,000 in assets and
$100,001 to $500,000 in liabilities. Judge Mike K. Nakagawa
oversees the case.
The Debtor is represented by Seth D. Ballstaedt, Esq., at Fair Fee
Legal Services.
LIFSEY REAL ESTATE: Unsecured Creditors to Split $36K in Plan
-------------------------------------------------------------
Lifsey Real Estate & Holdings, Inc., filed with the U.S. Bankruptcy
Court for the Middle District of Florida a Chapter 11 Plan dated
June 1, 2023.
The Debtor is a Tampa-based real estate company focused on
acquiring, developing, and brokering real estate assets. The
Debtor is engaged in negotiations in connection with multiple
development and real estate transactions, including some involving
property located adjacent to Racetrack Road.
LREH's chapter 11 filing was precipitated by years of litigation
with Association. On December 18, 2014, the Association filed a
complaint for foreclosure and damages against LREH (the
"Foreclosure Action"), over less than $800.00 in unpaid assessments
and late charges, in the Circuit Court of the Thirteenth Judicial
Circuit in and for Hillsborough County (the "State Court").
Notwithstanding the pending Foreclosure Action, the unit was sold
in July 2016 in an arm's length transaction to Susan Reina, an
unrelated third party.
Largely as a result of attorney fees and costs, the amount in
dispute has grown to an absurd amount which the Association now
contends is more than $500,000.00. On December 21, 2021, the
Association obtained a judgment against LREH for attorney fees and
costs in the total sum of $251,946.00, bearing interest at the
statutory rate, Florida Statutes. The judgment is on appeal before
the Second District Court of Appeal. Indeed, four appeals emanate
from the Foreclosure Action.
Class 2 consists of the Secured Claim of the Association. This
Class consists of the Allowed Secured Claim of Association, which
is Disputed by the Debtor. The value of the Debtor's property that
would be subject to any Allowed Secured Claim of the Association on
account of its judgment lien is de minimus. Accordingly, the
Association's claim is wholly unsecured, and the Association is not
entitled to any payment or distribution on account of its Class 2
Secured Claim. Any Allowed Claim of the Association shall only
receive treatment as a Class 3 general unsecured claim.
Class 3 consists of General Unsecured Claims. The Holder(s) of
Allowed General Unsecured Claim(s), shall share pro rata in the
Unsecured Creditor Effective Date Distribution. In addition to the
Unsecured Creditor Effective Date Distribution, every Holder of
Allowed General Unsecured Claim against the Debtor shall receive
its pro rata share of the Debtor's projected disposable income,
after payment of Allowed Administrative Expense Claims, Allowed
Priority Tax Claims, Allowed Priority Claims, and Allowed Secured
Claims, for a three-year period following the Effective Date.
Payments shall be made annually on the last day of the month
following the anniversary of the Effective Date. The Debtor
projects that total distributions to the Holders of Allowed Class 3
Claims will be approximately $6,000.00 from projected disposable
income and $30,000.00 from the Unsecured Creditor Effective Date
Distribution, for a total of approximately $36,000.00. Class 3 is
Impaired. The allowed unsecured claims total $161,764.25 to
$599,927.29.
Class 4 consists of all Allowed Equity Interests. On the Effective
Date, the Holders of Equity Interests in the Debtor shall be
entitled to retain all legal, equitable, and contractual rights in
such Equity Interests, and provided, however, Holders shall not be
entitled to any Distribution from the Estate until the satisfaction
of all Allowed Administrative Expense Claims, Allowed Priority Tax
Claims, Allowed Priority Claims, and Allowed Claims in Class 3.
Class 4 is Unimpaired.
The Plan will be funded by a one-time Lifsey Plan Contribution,
which shall be used first to pay Allowed Administrative Expense
Claims, Allowed Priority Tax Claims, and Allowed Priority Claims.
After payment of those claims, the balance of the Lifsey Plan
Contribution, in an amount not to exceed $30,000.00, will be
distributed pro rata to the Holders of Allowed Class 3 General
Unsecured Claims on the Effective Date. Allowed Class 3 General
Unsecured Claims will also receive their pro rata share of any
projected disposable income payments during the thirty-six month
period following the Effective Date.
A full-text copy of the Chapter 11 Plan dated June 1, 2023 is
available at https://urlcurt.com/u?l=40JkLd from PacerMonitor.com
at no charge.
Counsel for the Debtor:
Kathleen L. DiSanto, Esq.
Bush Ross, PA
P.O. Box 3913
Tampa, FL 33601-3913
Telephone: (813) 224-9255
Facsimile: (813) 223-9620
Email: kdisanto@bushross.com
About Lifsey Real Estate & Holdings
Lifsey Real Estate & Holdings, Inc. filed a petition under Chapter
11, Subchapter V of the Bankruptcy Code (Bankr. M.D. Fla. Case No.
23-00817) on March 3, 2023, with up to $50,000 in assets and
$100,001 to $500,000 in liabilities. Michael C. Markham is the
Subchapter V trustee appointed in the Debtor's case and is
represented by Johnson, Pope, Bokor, Ruppel & Burns, LLP.
Judge Roberta A. Colton oversees the case.
The Debtor tapped Kathleen DiSanto, Esq., at Bush Ross, P.A., as
its legal counsel.
LITTLE ROAD: Brian Rothschild Named Subchapter V Trustee
--------------------------------------------------------
The U.S. Trustee for Region 19 appointed Brian Rothschild, Esq., as
Subchapter V trustee for Little Road Co., LLC.
Mr. Rothschild, an attorney at Parsons Behle & Latimer, will be
paid an hourly fee of $430 for his services as Subchapter V trustee
and will be reimbursed for work-related expenses incurred.
Mr. Rothschild declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Brian M. Rothschild, Esq.
Parsons Behle & Latimer
201 South Main Street, Suite 1800
Salt Lake City, UT 84111
Phone: (801) 532-1234
Email: brothschild@parsonsbehle.com
About Little Road Co.
Little Road Co. is an online apparel store in Draper, Utah, which
offers a range of clothing for kids.
Little Road Co. filed its voluntary petition for Chapter 11
protection (Bankr. D. Utah Case No. 23-22020) on May 18, 2023,
with
$50,000 to $100,000 in assets and $1 million to $10 million in
liabilities. Sydni Sorensen, managing member, signed the petition.
Judge Joel T. Marker oversees the case.
T. Edward Cundick, Esq., at Workman Nydegger serves as the Debtor's
legal counsel.
LTL MANAGEMENT: J&J's Talc Deal Faces Key Test During Oakland Trial
-------------------------------------------------------------------
Jef Feeley of Bloomberg News reports that Johnson & Johnson's first
jury trial in nearly two years over allegations that its talc-based
baby powder causes cancer could influence plaintiffs weighing the
$8.9 billion settlement offer put forth by the company last April
2023.
The trial in Anthony Hernandez Valadez's suit alleging he got
mesothelioma from asbestos-contaminated talc in J&J products is
scheduled to go before a jury Wednesday, May 31, 2023, in state
court in Oakland, California. Due to Valadez's failing health, the
case was allowed to proceed as an exception to the order putting
all litigation on hold after J&J sought to wall off all of its talc
liability in a Chapter 11 bankruptcy for its LTL Management unit.
J&J, which is trying to settle more than 40,000 talc cases in the
bankruptcy, must convince 75% of plaintiffs to back its settlement
offer. The company is hoping the Chapter 11 halt to most jury
trials will help it build support for the deal. But a big award for
Valadez could convince more plaintiffs to go to trial, potentially
tanking the deal.
"People involved in the talc litigation will be watching the
verdict in Mr. Valadez's case very closely," said Carl Tobias, a
University of Richmond professor who teaches product-liability law.
"It could very be one of the deciding factors in whether they
accept J&J's offer or hold out for their own trial."
Over the years, New Brunswick, New Jersey-based J&J has steadfastly
maintained its baby powder -- sold in distinctive white bottles --
never contained asbestos, is safe and doesn't cause cancer.
Executives say they are seeking a settlement to avoid billions in
legal fees and expenses, along with a new wave of trials.
"The company deeply sympathizes with anyone suffering from cancer
and understands they are looking for answers," J&J said in a
statement on the Valadez trial. "However, the science doesn't
support that the exceedingly rare form of mesothelioma at issue in
this case is connected to talc exposure."
If Valadez persuades jurors to award him millions on his talc
claims, it would dwarf what other individual victims could expect
to get in the settlement, said Elizabeth Burch, a University of
Georgia professor who specializes in mass-tort law.
"It comes down to an economic decision as to whether you can wait
any longer to be compensated in deciding on the settlement," she
said. "It's clear the settlement won't provide millions" to each
individual who has sued, she added.
In 2021, another Oakland jury awarded a woman more than $26 million
in a talc case against the J&J. The company is appealing the
verdict.
Pulled From Market
J&J pulled its talc-based baby powder off the US market in 2020 and
replaced it with a cornstarch-based product. It's also planning to
take the talc-based powders off the market worldwide by the end of
this year.
The company's nearly $9 billion settlement offer came as part of a
second Chapter 11 filing for LTL. A previous one was rejected in
January by a federal appeals court that concluded that J&J was
misusing the bankruptcy process to strong-arm plaintiffs into
resolving their cases. Some plaintiffs' lawyers want LTL's April
filing tossed on similar grounds. US Bankruptcy Judge Michael
Kaplan in New Jersey is expected to weigh that request sometime
this summer.
Kaplan agreed to allow Valadez to bring his case to trial after
doctors reported his cancer had progressed to the point that the
24-year-old man only has months to live. Along with J&J, Valadez
is suing retailers who sold him the talc-based powder, including
Walmart Inc., Target Corp. and grocery chain Safeway Inc.
Some lawyers for talc plaintiffs noted many other claimants died
while their cases were on hold because of the LTL bankruptcy. "We
certainly look forward to the day when all talc victims can get
their day in court," said Leigh O'Dell, a lawyer who opposes J&J's
settlement offer.
The California case is Valadez v. Johnson & Johnson, No.
22CV012759, Alameda County Circuit Court, (Oakland). The
bankruptcy case LTL Management LLC, 21-30589, U.S. Bankruptcy
Court, District of New Jersey (Trenton)
About LTL Management
LTL Management, LLC, is a subsidiary of Johnson & Johnson (J&J),
which was formed to manage and defend thousands of talc-related
claims and oversee the operations of Royalty A&M. Royalty A&M owns
a portfolio of royalty revenue streams, including royalty revenue
streams based on third-party sales of LACTAID, MYLANTA/MYLICON and
ROGAINE products.
LTL Management filed a petition for Chapter 11 protection (Bankr.
W.D.N.C. Case No. 21-30589) on Oct. 14, 2021. The case was
transferred to New Jersey (Bankr. D.N.J. Case No. 21-30589) on
Nov.
16, 2021. The Hon. Michael B. Kaplan is the case judge. At the
time of the filing, the Debtor was estimated to have $1 billion to
$10 billion in both assets and liabilities.
The Debtor tapped Jones Day and Rayburn Cooper & Durham, P.A., as
bankruptcy counsel; King & Spalding, LLP and Shook, Hardy & Bacon
LLP as special counsel; McCarter & English, LLP as litigation
consultant; Bates White, LLC as financial consultant; and
AlixPartners, LLP as restructuring advisor. Epiq Corporate
Restructuring, LLC, is the claims agent.
An official committee of talc claimants was formed in the Debtor's
Chapter 11 case on Nov. 9, 2021. On Dec. 24, 2021, the U.S.
Trustee for Regions 3 and 9 reconstituted the talc claimants'
committee and appointed two separate committees: (i) the official
committee of talc claimants I, which represents ovarian cancer
claimants, and (ii) the official committee of talc claimants II,
which represents mesothelioma claimants.
The official committee of talc claimants I tapped Genova Burns LLC,
Brown Rudnick LLP, Otterbourg PC and Parkins Lee & Rubio LLP as its
legal counsel. Meanwhile, the official committee of talc
claimants
II is represented by the law firms of Cooley LLP, Bailey Glasser
LLP, Waldrep Wall Babcock & Bailey PLLC, Massey & Gail LLP, and
Sherman Silverstein Kohl Rose & Podolsky P.A.
Re-Filing of Chapter 11 Petition
On Jan. 30, 2023, a panel of the Third Circuit issued an opinion
directing the Court to dismiss the 2021 Chapter 11 Case on the
basis that it was not filed in good faith. Although the Third
Circuit panel recognized that the Debtor "inherited massive
liabilities" and faced "thousands" of future claims, it concluded
that the Debtor was not in financial distress before the filing.
On March 22, 2023, the Third Circuit entered an order denying the
Debtor's petition for rehearing. The Third Circuit entered an
order denying LTL's stay motion on March 31, 2023, and, on the dame
day, issued its mandate directing the Bankruptcy Court to dismiss
the 2021 Chapter 11 Case.
The Bankruptcy Court entered an order dismissing the 2021 Case on
April 4, 2023.
Johnson & Johnson on April 4, 2023, announced that its subsidiary
LTL Management LLC (LTL) has re-filed for voluntary Chapter 11
bankruptcy protection (Bankr. D.N.J. Case No. 23-12825) to obtain
approval of a reorganization plan that will equitably and
efficiently resolve all claims arising from cosmetic talc
litigation against the Company and its affiliates in North
America.
In the new filing, J&J said it has agreed to contribute up to a
present value of $8.9 billion, payable over 25 years, to resolve
all the current and future talc claims, which is an increase of
$6.9 billion over the $2 billion previously committed in connection
with LTL's initial bankruptcy filing in October 2021. LTL also has
secured commitments from over 60,000 current claimants to support a
global resolution on these terms.
LURADIANT LLC: Seeks Chapter 11 Bankruptcy Protection
-----------------------------------------------------
Luradiant LLC filed for chapter 11 protection in the District of
Utah without stating a reason.
According to court filings, Luradiant LLC estimates between $1
million and $10 million in debt owed to 1 to 49 creditors. The
bare-bones petition states that funds will not be available to
unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
June 28, 2023, via Chapter 11 341 Mtg Teleconference Line. Proofs
of claim are due by Sept. 26, 2023.
About Luradiant LLC
Luradiant LLC is a Single Asset Real Estate (as defined in 11
U.S.C. Section 101(51B)).
Luradiant LLC filed a petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. D. Utah Case No. 23-22098) on May 23, 2023.
In the petition filed by Glade Jones, as Glade Jones as Manager of
Imprint Builders, LLC, the Debtor reported assets and liabilities
between $1 million and $10 million each.
Honorable Bankruptcy Judge Peggy Hunt handles the case.
The Debtor is represented by:
T. Edward Cundick, Esq.
Workman Nydegger
942 S. 250 E.
Farmington, UT 84025
801-458-8388
LURADIANT LLC: Seeks to Hire Workman Nydegger as Legal Counsel
--------------------------------------------------------------
Luradiant, LLC seeks approval from the U.S. Bankruptcy Court for
the District of Utah to employ Workman Nydegger to handle its
Chapter 11 case.
The firm will be paid at the rate of $425 per hour and will be
reimbursed for out-of-pocket expenses incurred.
T. Edward Cundick, Esq., a partner at Workman Nydegger, disclosed
in a court filing that his firm is a "disinterested person"
pursuant to Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
T. Edward Cundick, Esq.
Workman Nydegger
60 East South Temple, Suite 1000
Salt Lake City, UT 84111
Tel: (801) 533-9800
Fax: (801) 328-1707
Email: tcundick@wnlaw.com
About Luradiant LLC
Luradiant, LLC, a company in Farmington, Utah, filed its voluntary
petition for Chapter 11 protection (Bankr. D. Utah Case No.
23-22098) on May 23, 2023, with as much as $1 million to $10
million in both assets and liabilities. Judge Peggy Hunt oversees
the case.
T. Edward Cundick, Esq., at Workman Nydegger serves as the Debtor's
legal counsel.
LYM DEVELOPMENT: Taps KW Philly South as Real Estate Broker
-----------------------------------------------------------
Lym Development, LLC received approval from the U.S. Bankruptcy
Court for the Eastern District of Pennsylvania to employ KW Philly
South.
The Debtor requires a broker to market and sell its real properties
located at:
a. 1524 S. Cleveland St., Philadelphia, Pa.;
b. 1923 Gerritt St., Philadelphia, Pa.;
c. 2255 Greenwich St., Philadelphia, Pa.;
d. 901-911 Emily St., Philadelphia, Pa.; and
e. 439 Erial Road, Sicklerville, N.J.
The firm will be paid a commission of 6 percent of the sales price
for each property sold.
Andrew Gismondi, a member of KW Philly South, disclosed in a court
filing that his firm is a "disinterested person" pursuant to
Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Andrew Gismondi
KW Philly South
728 S. Broad Street
Philadelpia, PA 19146
Tel: (215) 607-6007
Email: agismondi@kw.com
About Lym Development
LYM Development, LLC is a company in Blackwood, N.J., which is
engaged in activities related to real estate.
LYM Development filed its voluntary petition for Chapter 11
protection (Bankr. E.D. Pa. Case No. 23-11435) on May 17, 2023,
with $35,700 in assets and $4,447,494 in liabilities. Judge
Patricia M. Mayer oversees the case.
Gellert Scali Busenkell & Brown, LLC serves as the Debtor's legal
counsel.
MALLINCKRODT PLC: Considers Second Bankruptcy Filing, Other Options
-------------------------------------------------------------------
Mallinckrodt Plc (MNK.A) said in a regulatory filing Monday, June
5, 2023, it was considering a second bankruptcy filing and other
options after its lenders raised concerns over an upcoming $200
million payment related to opioid-related litigation.
Mallinckrodt said in the SEC filing it has received unsolicited
letters on behalf of various parties holding substantial positions
across the Company's capital structure, including certain holders
of the Company's (i) terms loans due 2027 issued under the Credit
Agreement, dated as of June 16, 2022 (the "Term Loan Holders"),
(ii) 10.000% first lien senior secured notes due 2025 ("2025 First
Lien Notes"), (iii) 11.500% first lien senior secured notes due
2028, (iv) 10.000% second lien senior secured notes due 2025 ("2025
Second Lien Notes"), and (v) 10.000% second lien senior secured
notes due 2029.
The letters, the first of which was received on May 17, 2023,
addressed various matters, including certain of the Holders' views
regarding the Company's financial position. The Holders requested
that the Company's board of directors and management team evaluate
the Company's financial wherewithal and consider alternative
options to meet its financial responsibilities, including, in the
case of certain Holders, consideration of alternatives to making
the $200 million payment required by the Company's opioid
settlement to be made to the Opioid Master Disbursement Trust II
(the "Trust") on June 16, 2023.
Certain of the Holders proposed transactions to be implemented
through a filing under Chapter 11 of the U.S. Bankruptcy Code,
potentially involving a sale of assets in accordance with Section
363 of the U.S. Bankruptcy Code, and other Holders and interested
parties proposed transactions that would not involve a bankruptcy
filing.
Prior to receipt of the letters from the Holders, in connection
with the Company's evaluation of its capital needs in light of its
obligations under the opioid settlement and its long-term debt
obligations, including the 2025 First Lien Notes and 2025 Second
Lien Notes, the Company had commenced preliminary discussions with
the Trust about alternatives to the existing payment structure for
the opioid settlement. On June 1, 2023, after the Company received
the letters referenced above, the Trust sent a letter to the
Company demanding payment be made timely and threatening action
against the Company, its officers and directors.
The Board is actively evaluating this situation and considering
options, including transactions that have been proposed by the
Holders and other Company stakeholders, as well as the viewpoints
of the various parties in interest. On June 2, 2023, the Board
directed management and the Company's advisors to continue
analyzing various proposals and engaging in discussions with
various parties related to these options and viewpoints. There can
be no assurance of the outcome of this process, including whether
or not the Company may make a filing in the near term or later
under the U.S. Bankruptcy Code or analogous foreign bankruptcy or
insolvency laws.
About Mallinckrodt PLC
Mallinckrodt -- http://www.mallinckrodt.com/-- is a global
business consisting of multiple wholly-owned subsidiaries that
develop, manufacture, market and distribute specialty
pharmaceutical products and therapies. The company's Specialty
Brands reportable segment's areas of focus include autoimmune and
rare diseases in specialty areas like neurology, rheumatology,
nephrology, pulmonology and ophthalmology; immunotherapy and
neonatal respiratory critical care therapies; analgesics; and
gastrointestinal products. Its Specialty Generics reportable
segment includes specialty generic drugs and active pharmaceutical
ingredients.
On Oct. 12, 2020, Mallinckrodt plc and certain of its affiliates
sought Chapter 11 protection in Delaware (Bankr. D. Del. Lead Case
No. 20-12522) to seek approval of a restructuring that would reduce
total debt by $1.3 billion and resolve opioid-related claims
against them.
Mallinckrodt plc disclosed $9,584,626,122 in assets and
$8,647,811,427 in liabilities as of Sept. 25, 2020.
Judge John T. Dorsey oversees the cases.
The Debtors tapped Latham & Watkins, LLP and Richards, Layton &
Finger, P.A. as their bankruptcy counsel; Arthur Cox and Wachtell,
Lipton, Rosen & Katz as corporate and finance counsel; Ropes &
Gray, LLP as litigation counsel; Torys, LLP as CCAA counsel;
Guggenheim Securities, LLC as investment banker; and AlixPartners,
LLP as restructuring advisor. Prime Clerk, LLC is the claims
agent.
The official committee of unsecured creditors retained Cooley, LLP,
as its legal counsel; Robinson & Cole, LLP as co-counsel; and
Dundon Advisers, LLC as financial advisor.
On Oct. 27, 2020, the U.S. Trustee for Region 3 appointed an
official committee of opioid-related claimants. The OCC tapped
Akin Gump Strauss Hauer & Feld, LLP as its lead counsel; Cole
Schotz as Delaware co-counsel; Province, Inc. as financial advisor;
and Jefferies, LLC as investment banker.
* * *
Mallinckrodt plc on June 16, 2022, announced that it has
successfully completed its reorganization process, emerged from
Chapter 11 and completed the Irish Examinership proceedings.
Implementing the Plan and the Scheme strengthens the Company's
balance sheet, reduces its total debt by approximately $1.3 billion
and enables it to move forward with more than $250 million in cash
and cash equivalents on hand. The Plan and Scheme include key
legal settlements that resolve opioid claims brought against the
Company and litigation matters involving Acthar Gel, among other
claims, and provides for significant equitization of the Company's
guaranteed unsecured notes.
MALLINCKRODT PLC: Opioid Victims Slam Lenders' Move to Cut Payouts
------------------------------------------------------------------
Erin Hudson of Bloomberg Law reports that a group of opioid victims
is calling on Mallinckrodt Plc to honor its legal settlement with
them as the drugmaker faces mounting pressure from lenders to skip
or renegotiate the payments.
The group, which represents over 60,000 victims, sent a letter seen
by Bloomberg News to Mallinckrodt's board of directors and senior
executives on Friday, May 27, 2023.
Bloomberg reported Friday that some of Mallinckrodt's lenders want
the company to skip or renegotiate an upcoming $200 million payment
-- its first under a bankruptcy settlement agreement -- out of
concern it could strain its liquidity. The payment is due June 16,
2023.
About Mallinckrodt PLC
Mallinckrodt -- http://www.mallinckrodt.com/-- is a global
business consisting of multiple wholly-owned subsidiaries that
develop, manufacture, market and distribute specialty
pharmaceutical products and therapies. The company's Specialty
Brands reportable segment's areas of focus include autoimmune and
rare diseases in specialty areas like neurology, rheumatology,
nephrology, pulmonology and ophthalmology; immunotherapy and
neonatal respiratory critical care therapies; analgesics; and
gastrointestinal products. Its Specialty Generics reportable
segment includes specialty generic drugs and active pharmaceutical
ingredients.
On Oct. 12, 2020, Mallinckrodt plc and certain of its affiliates
sought Chapter 11 protection in Delaware (Bankr. D. Del. Lead Case
No. 20-12522) to seek approval of a restructuring that would reduce
total debt by $1.3 billion and resolve opioid-related claims
against them.
Mallinckrodt plc disclosed $9,584,626,122 in assets and
$8,647,811,427 in liabilities as of Sept. 25, 2020.
Judge John T. Dorsey oversees the cases.
The Debtors tapped Latham & Watkins, LLP and Richards, Layton &
Finger, P.A. as their bankruptcy counsel; Arthur Cox and Wachtell,
Lipton, Rosen & Katz as corporate and finance counsel; Ropes &
Gray, LLP as litigation counsel; Torys, LLP as CCAA counsel;
Guggenheim Securities, LLC as investment banker; and AlixPartners,
LLP as restructuring advisor. Prime Clerk, LLC is the claims
agent.
The official committee of unsecured creditors retained Cooley, LLP,
as its legal counsel; Robinson & Cole, LLP as co-counsel; and
Dundon Advisers, LLC as financial advisor.
On Oct. 27, 2020, the U.S. Trustee for Region 3 appointed an
official committee of opioid-related claimants. The OCC tapped
Akin Gump Strauss Hauer & Feld, LLP as its lead counsel; Cole
Schotz as Delaware co-counsel; Province, Inc. as financial advisor;
and Jefferies, LLC as investment banker.
* * *
Mallinckrodt plc on June 16, 2022, announced that it has
successfully completed its reorganization process, emerged from
Chapter 11 and completed the Irish Examinership proceedings.
Implementing the Plan and the Scheme strengthens the Company's
balance sheet, reduces its total debt by approximately $1.3
billion
and enables it to move forward with more than $250 million in cash
and cash equivalents on hand. The Plan and Scheme include key
legal settlements that resolve opioid claims brought against the
Company and litigation matters involving Acthar Gel, among other
claims, and provides for significant equitization of the Company's
guaranteed unsecured notes.
MCDERMOTT INT'L: In Talks for Letters of Credit Extension
---------------------------------------------------------
Reshmi Basu of Bloomberg News reports that Engineering and
construction company McDermott International Ltd. is in talks with
lenders for an extension of its letter of credit facility coming
due in 2024, according to people with knowledge of the situation.
The closely held firm made the disclosure during an earnings call
held earlier this month, the people said. McDermott is working with
investment bank Credit Suisse Group AG for assistance.
A group of creditors, with holdings in both the company's term loan
and the letter of credit facility, have retained PJT Partners and
Davis Polk & Wardwell to help with extension talks, the people
said.
About McDermott International
Headquartered in Houston, Texas, McDermott (MDR) --
http://www.mcdermott.com/-- is a provider of engineering,
procurement, construction and installation and technology solutions
to the energy industry. Its common stock was listed on the New
York Stock Exchange under the trading symbol MDR.
As of Sept. 30, 2019, McDermott had $8.75 billion in total assets,
$9.86 billion in total liabilities, $271 million in redeemable
preferred stock, and a total stockholders' deficit of $1.38
billion.
On Jan. 21, 2020, McDermott International announced that it has the
support of more than two-thirds of all its funded debt creditors
for a restructuring transaction that will equitize nearly all the
Company's funded debt, eliminating over $4.6 billion of debt.
McDermott solicited votes from its lenders and bondholders in
support of a prepackaged Chapter 11 Plan of Reorganization and
commenced the prepackaged Chapter 11 later in the day, on Jan. 21,
2020 in the U.S. Bankruptcy Court for the Southern District of
Texas.
McDermott International and 224 affiliates on Jan. 21 and 22, 2020,
filed Chapter 11 bankruptcy petitions (Bankr. Lead Case No.
20-303360). The Hon. Marvin Isgur was the case judge.
The Debtors tapped Kirkland & Ellis LLP (New York) as general
bankruptcy counsel; Jackson Walker L.L.P. as local counsel;
Alixpartners, LLP as restructuring advisor; AP Services, LLC as
operational advisor; Arias, Fabrega & Fabrega as Panamanian
counsel; and Baker Botts L.L.P. as corporate counsel. Prime Clerk
is the claims agent, maintaining the page
https://cases.primeclerk.com/mcdermott
MISSISSIPPI CENTER: Court OKs Cash Collateral Access Thru Aug 31
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Mississippi
authorized Mississippi Center for Advanced Medicine, P.C. to use
cash collateral on a final basis in accordance with the budget,
through August 31, 2023.
The Debtor requires the use of cash collateral to pay business
expenses.
BankPlus is the Debtor's principal secured lender and it asserts
various interests in some of the Debtor's personal property
including, without limitation. The Debtor's accounts receivable.
McKesson Corporation also asserts interests in the Debtor's
personal property. Further, the Bank and McKesson assert interests
in cash collateral including, without limitation, that the cash
constitutes proceeds of the Collateral and, therefore, constitutes
cash collateral within the meaning of 11 U.S.C. section 363(a).
Under section 363(c), the Bank and McKesson consents to the
Debtor's use of cash collateral under the terms and conditions set
forth therein.
In the ordinary course of the Debtor's business operations, the
Debtor maintains certain bank accounts with the Bank, which provide
established mechanisms for the collection, management, and
disbursement of funds used in the Debtor's operations.
The Debtor is directed to increase the amount of monthly payments
to BankPlus from $3,500 per month to $5,500 per month. In addition,
the Debtor has increased its use of cash collateral to pay for
malpractice insurance premiums that are due in the Debtor's
practice in Louisiana in the sum of $11,462, additional insurance
premiums for general liability insurance due in August 2023 for
$35,000, and for workers' compensation insurance due in September
2023 in the sum of $20,000.
As adequate protection, the Bank and McKesson are granted
replacement security interests in, and liens on, all post-Petition
Date acquired property of the Debtor and the Debtor's bankruptcy
estate that is the same type of property that the Bank and McKesson
hold pre-petition interests, liens, or security interests, to the
extent of the validity and priority of such interests, liens, or
security interests.
The Debtor will also continue to maintain adequate and sufficient
insurance on all its property and assets.
The Debtor's right to use cash collateral will terminate, unless
extended by further Court order or by express written consent of
the Bank and McKesson, on the earlier of:
(i) September 1,2023;
(ii) The failure of the Debtor to comply with any provision of
the Interim Order;
(iii) The entry of an order authorizing, or if there will occur,
a conversion or dismissal of this case under 11 U.S.C. section
1112;
(iv) The entry of an order appointing a trustee, or appointing
an examiner;
(v) The closing of sale of all or a substantial portion of the
Debtor's assets;
(vii) The cessation of day-to-day operations of the Debtor;
(viii) Any loss of accreditation or licensing of the Debtor that
would materially impede or impair the Debtor's ability to operate
as a going concern; and
(ix) Any material provision of the Interim Order for any reason
ceases to be enforceable, valid, or binding upon the Debtor.
A copy of the Court's order and the Debtor's budget is available at
https://urlcurt.com/u?l=s2rFmA from PacerMonitor.com.
The Debtor projects $5.330 million in gross profit and $5.3 million
in total expenses for the period from June 1 to August 31, 2023.
About Mississippi Center for Advanced Medicine
Mississippi Center for Advanced Medicine, P.C. is a healthcare
organization in Mississippi that integrates subspecialty care,
clinical pharmacy services, and care coordination for patients with
pediatric, congenital, and maternal fetal disorders.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Miss. Case No. 23-00962) on April 21,
2023. In the petition signed by Jordan Robinson, vice president and
chief operating officer, the Debtor disclosed up to $10 million in
both assets and liabilities.
Judge Jamie A. Wilson oversees the case.
Craig M. Geno, Esq., at the Law Offices of Craig M. Geno, PLLC,
represents the Debtor as legal counsel.
MODIVCARE INC: S&P Downgrades ICR to 'B', On Watch Negative
-----------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on ModivCare
Inc. to 'B' from 'B+' and placed the rating on CreditWatch with
negative implications. Additionally, S&P lowered its issue-level
rating on the company's senior unsecured notes to 'B' from 'B+' and
placed the rating on CreditWatch with negative implications. The
recovery rating on this debt remains '4'.
The CreditWatch negative reflects the potential for a further
downgrade if EBITDA and cash flow generation fails to strengthen,
covenant headroom continues to erode, and the company is unable to
amend its credit agreement, severely limiting its access to its
revolver and constraining liquidity.
The downgrade primarily reflects S&P's expectation for S&P Global
Ratings-adjusted leverage to remain over 5x for the next 12 months.
As utilization in the company's largest segment, non-emergency
medical transportation (NEMT), has picked up following a period of
lower usage during the pandemic, the company has seen an increase
in its service cost per trip which has burdened margins over the
last 12 months. Reported EBITDA margins in the segment have fallen
approximately 200 basis points, significantly hindering the
company's EBITDA generation. In addition to the struggles the
company has faced in its NEMT segment, its Home Division, which
includes the Personal Care Services and Remote Patient Monitoring
segments, has seen significant labor inflation over the past year,
which has been partially offset by increased reimbursement. As the
company looks to grow these segments and pass the higher costs to
its customers, S&P expects wage pressures to continue as it
competes to attract low-skilled workers to staff its homecare
operations in an already tight labor market.
S&P said, "As a result of these margin pressures, we expect S&P
Global Ratings-adjusted EBITDA margins to contract approximately 90
basis points in 2023, down nearly 200 basis points from elevated
levels in 2021. The contraction in margins will outpace expected
revenue growth resulting in a decrease in total S&P Global
Ratings-adjusted EBITDA in 2023. We expect S&P Global
Ratings-adjusted leverage for 2023 to be in the mid- to high-6x
range.
"Under the assumption that margin expansion in 2024 returns to a
similar level seen in 2022, reflecting improved contract terms and
better allocation of resources across all segments, we expect
leverage to return to below 6x but remain elevated in the high-5x
range for the year. We do not expect margins to return to the
8.5%-12.5% range seen during the pandemic as a result of extremely
low utilization at any point in our forecast. However, if rising
labor costs continues to affect business performance, margins could
continue to compress resulting in sustained elevated leverage which
could warrant a further downgrade.
"Weak free cash flow generation will likely continue for ModivCare
throughout 2023. The company has reported negative free operating
cash flow (FOCF) for the previous four quarters and we expect that
this will continue into the second quarter of 2023. FOCF has been
burdened in recent quarters by underperformance fueled by
compressed margins as well as large working capital outflows
related to contracts payable from overpayments on NEMT contracts
due to underutilization of ride services during the pandemic. While
we expect working capital outflows to ease in the latter half of
2023, we still forecast minimal or slightly negative free cash flow
generation for the full year."
ModivCare currently estimates that working capital swings related
to contracts payable will continue for the next 24 to 36 months as
it reduces the payables balance. Despite the continuation of these
working capital outflows,S&P believes the future outflows will have
a limited impact compared with the past year, leading to improved
cash flow metrics compared to the previous four quarters. However,
if the company's business performance continues to weaken, free
cash flow generation could remain negative or at minimal levels
which could result to a further downgrade.
Medicaid redetermination will affect an estimated 10%-15% of
ModivCare's Medicaid member base in the NEMT segment over the next
12 to 24 months. With the end of the public health emergency,
Medicaid redetermination is set to affect millions of consumers'
government-sponsored health insurance coverage, including
approximately 10%-15% of the company's Medicaid members.
ModivCare's NEMT segment currently generates approximately 82% of
its revenue from Medicaid customers so losing a sizable portion of
its customer base could hurt revenue growth and margins. At this
point, it is unknown what segments of the company's members will be
affected by redetermination, but if a large portion of the members
lost are low-utilization members (i.e., recurring revenue with
minimal service costs), S&P could see a further compression of
margins for full-risk contracts (currently about 20% of total
contacts) that could burden leverage and free cash flow and lead to
a further downgrade. However, ModivCare does expect to be able to
reprice these contracts over the next 12 months.
The CreditWatch negative placement is based on the covenant
tightness that has constrained liquidity. With covenant headroom
deteriorating as a result of reduced EBITDA and upcoming covenant
step-downs in the third quarter of 2023, S&P believes the company
may not be able to access its full revolver capacity of $325
million for working capital uses unless credit agreements are
amended to raise the maximum leverage ratio. Given the company's
already limited cash balance, reduced access to the revolver could
quickly become problematic for the company if negative cash flow
persists.
CreditWatch
The CreditWatch negative reflects the potential for a downgrade if
covenant headroom continues to erode and the company is unable to
amend its credit agreement such that it increases access to its
revolving credit facility or if free cash flow deficits worsen,
further constraining liquidity.
S&P could lower its rating on ModivCare if:
-- The company is unable to amend its credit agreement in the near
term, leaving liquidity constrained due to limited revolver
accessibility;
-- Negative free cash flow generation persists and worsens as a
result of deteriorating business performance, further constraining
liquidity; or
-- Leverage remains elevated, exceeding 7.0x as a result of
compressed margins and loss of business due to Medicaid
redetermination or other unforeseen circumstances.
S&P could affirm the rating and remove from CreditWatch if:
-- The company is able to amend its credit agreement in a way that
increases its access to its revolving credit facility, relieving
some of the pressures on its liquidity position; or
-- Free cash flow generation turns positive sooner than expected
increasing the company's liquidity position.
ESG credit indicators: E-2, S-2, G-3
S&P's assessment of the company's management culture reflects the
unexpected change to senior leaders in a short period of time,
including the CEO and president of the home division, which it
thinks increases execution risk.
MRS BUSY BEE: Files Emergency Bid to Use Cash Collateral
--------------------------------------------------------
Mrs. Busy Bee Air Conditioning and Heating, LLC asks the U.S.
Bankruptcy Court for the Middle District of Florida, Orlando
Division, for authority to use cash collateral and provide adequate
protection, if necessary, to Flash Funding LLC and, to the extent
necessary, to the following inferior interests that may assert a
lien or security interest in the Debtor's cash collateral: EBF
Holding, LLC, d/b/a Everest Business Funding; Maison Capital Group,
Inc.; and Ram Payment LLC d/b/a Reliant Account Management.
The Debtor requires the use of cash collateral to continue
operations.
The Debtor operates a profitable and productive residential and
commercial HVAC services provider that has become burdened with
usurious and unconscionable loans from merchant cash advance
lenders that have caused cash flow issues that are spiraling to
become overwhelming and unmanageable. The Debtor was inundated with
offers from MCA lenders and unfortunately made an improvident
decision to accept a loan offer from an MCA lender to use for
marketing and lead generation to build the Debtor's business.
Unfortunately, that loan almost immediately became unmanageable and
unserviceable due to the massively high, usurious interest rates
that caused cash flow issues for the business.
The Debtor was then inundated with other offers from MCA lenders as
a way to address the Debtor's cash flow issues, which again the
Debtor improvidently accepted, which then drastically exacerbated
the Debtor's financial and cash flow issues with additional
predatory loans from MCA lenders that are imposing huge and
unnecessary costs on the Debtor. The MCA lenders' ability to
unilaterally take funds from the Debtor's bank accounts has made it
difficult for the Debtor to operate. The Debtor also has other
trade creditors that it desires to reorganize.
As of the Petition Date, the Debtor has approximately $8,098 of
cash in deposit accounts and a prepayment of rent deposit with the
landlord of $1,681; and the Debtor is owed approximately $887 in
accounts receivable. The Debtor's other personal property subject
to the alleged lien of the Secured Creditor and the Inferior
Interests (consisting of office equipment and supplies) is valued
at approximately $6,658. The Debtor's earnings going forward may
arguably be subject to creditors' alleged liens described below,
and to the extent that such future earnings may be deemed to be
cash collateral, the Debtor seeks authority to use same.
The Debtor owes approximately $87,230 to Flash Funding LLC that is
allegedly secured by a UCC Financing Statement filed on May 16,
2022.
However, the Secured Creditor does not have a deposit control
agreement with the Debtor or the Debtor's bank, and therefore its
lien on the Debtor's deposit accounts is unenforceable.
Accordingly, pursuant to 11 U.S.C. section 506, Flash has a secured
claim in the amount of $9,698; however, the secured claim may be
subject to further objection.
On September 16, 2022, a UCC Statement was filed by Everest. It
appears this lien is wholly unsecured pursuant to 11 U.S.C. section
506.
The Debtor's personal property is subject to Flash's prior lien,
and therefore there is no value to support Everest's lien. Everest
is wholly unsecured.
On December 5, 2022, a UCC Statement was filed by Maison (Filing
number: 202203814517). Maison asserts a $32,195 claim. It appears
this lien is wholly unsecured pursuant to 11 U.S.C. section 506.
Because the Debtor's personal property is subject to Flash's prior
lien, there is no value to support Maison's lien. Maison is wholly
unsecured.
On December 27, 2023, a UCC Statement (Filing number: 202204026807)
was filed by Creditor Relief, which asserts a $12,000 claim. It
appears this lien is wholly unsecured pursuant to 11 U.S.C. section
506 as the Debtor's personal property is subject to Flash's prior
lien.
A copy of the Debtor's motion and budget is available at
https://urlcurt.com/u?l=vnAwV6 from PacerMonitor.com.
The Debtor projects total operating expenses, on a monthly basis,
as follows:
$20,800 for June 2023;
$21,400 for July 2023;
$21,350 for August 2023;
$20,850 for September 2023; and
$19,250 for October 2023.
About Mrs. Busy Bee Air Conditioning and Heating, LLC
Mrs. Busy Bee Air Conditioning and Heating, LLC provides
residential and commercial HVAC services in Orlando, Florida, and
the surrounding areas.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 23-02139) on May 31,
2023. In the petition signed by Esther M. De La Torre, managing
member, the Debtor disclosed up to $100,000 in assets and up to
$500,000 in liabilities.
Jeffrey S. Ainsworth, Esq., at BransonLaw, PLLC, represents the
Debtor as legal counsel.
N. F. INTERNATIONAL: Files Emergency Bid to Use Cash Collateral
---------------------------------------------------------------
N. F. International Inc. asks the U.S. Bankruptcy Court for the
Northern District of Georgia, Atlanta Division, for authority to
use cash collateral to pay operating expenses of the business.
Bank of America, asserts a first priority security interest in all
accounts of Debtor. UCC Financing Statement filed October 14,
2021.
Itria Ventures LLC/Corporation Service Company as Representative
asserts a second priority interest in all accounts of the Debtor.
UCC Financing Statement filed September 7, 2022.
The cash collateral will be used only pursuant to the terms of the
budget during the period following entry of the Interim Order until
the earlier of (i) 45 days following entry of the Interim Order;
(ii) conversion of the case to Chapter 7 or dismissal of the case;
or (iii) the Debtor's violation of the terms of the Interim Order,
including failure to comply with the Budget.
As adequate protection for the cash collateral extended pursuant to
the Interim Order, BOA and Itria will be given a replacement lien
all pre-petition collateral of the Debtor, to the extent and
validity of those liens that existed pre-petition. Cash collateral
will only be used for items set forth in the budget to be approved
by the Court. It should have enough income to fund its proposed
Chapter 11 Plan.
A copy of the motion and the Debtor's budget is available at
https://urlcurt.com/u?l=6gp4qi from PacerMonitor.com.
The Debtor projects $600,100 in sales and $591,985 in total
expenses for one month.
About N. F. International Inc.
N. F. International Inc. manufactures aromatics and essential oil
products. The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ga. Case No. 23-54962) on May 28,
2023. In the petition signed by Nafisa Bijani, CEO, the Debtor
disclosed up to $100,000 in assets and up to $10 million in
liabilities.
Milton Jones, Esq. represents the Debtor as legal counsel.
NARKE ASHSTREET: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: Narke Ashstreet LLC
3913 S 184th St
Omaha, NE 68130
Business Description: The Debtor is a Single Asset Real Estate
(as defined in 11 U.S.C. Section 101(51B)).
Chapter 11 Petition Date: June 5, 2023
Court: United States Bankruptcy Court
District of Nebraska
Case No.: 23-80432
Judge: Hon. Thomas L. Saladino
Debtor's Counsel: Patric Patino, Esq.
PATINO KING LLC
13815 FNB Parkway Suite 440
Omaha NE 68154
Tel: (402) 401-4050
Email: patrick@patinoking.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Amogh Karney as member/manager.
The Debtor filed an empty list of its 20 largest unsecured
creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/JDJGK7A/NARKE_ASHSTREET_LLC__nebke-23-80432__0001.0.pdf?mcid=tGE4TAMA
NAT'L CINEMEDIA: Enters Into New Advertising Agreement with Regal
-----------------------------------------------------------------
National CineMedia, LLC ("NCM"), the largest cinema advertising
network in the United States, on June 5 disclosed that it has
entered into a new long-term Network Affiliate Transaction
Agreement ("Agreement") with Regal Cinemas, Inc. ("Regal
Cinemas").
"The agreement we announced [Mon]day strengthens and deepens NCM's
20-year relationship with Regal Cinemas well into the future and
reaffirms our position as the market leader and premier company in
cinema advertising," said Tom Lesinski, CEO of NCM. "With the
largest share of the young, diverse, and sought-after movie
audience, NCM will deliver our impactful advertising solutions to
brands across thousands of Regal Cinema screens in the United
States."
Through the Agreement, NCM acquires the exclusive right to provide
on-screen advertisements at Regal Cinemas' over 6,000 screens and
450 theaters. NCM will run its industry leading Noovie show,
featuring hundreds of national, regional, and local advertisers, as
well as the high impact Platinum ad unit within the trailers, on
Regal Cinemas' screens across the United States. NCM delivers one
of the most diverse, affluent audiences for brands across the only
three national cinema chains in the United States.
The new ten-year Agreement will replace the previous Exhibitor
Service Agreement with Regal Cinemas. The Agreement is subject to
approval by the United States Bankruptcy Court for the Southern
District of Texas, which is expected to occur on or before June 30,
2023. This Agreement represents a major milestone in the NCM's
restructuring and culminates its successful mediation with Regal
Cinemas.
NCM is a top, premium video platform with more than 19,500 screens,
including 90 of the top 100 theaters in the country. Through this
unmatched scale, NCM reaches 75% of the weekend box office in 24
out of 25 of the top DMA's. Additionally, NCMx, the Company's data
intelligence solution, is the most advanced in the marketplace,
connecting advertisers to consumers before, during, and after
moviegoing. The Company's deterministic data set of the moviegoing
audience is the largest in the industry, providing brands with a
360-degree view of recent consumer behavior.
About National CineMedia
National CineMedia, LLC, based in Centennial, Colo., owns the
largest cinema-advertising network in North America. NCM derives
its revenue principally from the sale of advertising to national,
regional, and local businesses, which is displayed on a national
and regional digital network of movie theaters.
National CineMedia, LLC, filed a Chapter 11 petition (Bankr. S.D.
Tex. Case No. 23-90291) on April 11, 2023, listing $500 million to
$1 billion in estimated assets; and $1 billion to $10 billion in
estimated liabilities. The petition was signed by Ronnie Ng, chief
financial officer of National CineMedia, Inc.
The Hon. David R. Jones presides over the case.
Paul, Weiss, Rifkind, Wharton & Garrison LLP, led by Paul M. Basta,
Esq., Kyle J. Kimpler, Esq., Sarah Harnett, Esq., and Shafaq Hasan,
Esq., serves as counsel to the Debtor. John F. Higgins, Esq., at
Porter Hedges LLP, serves as the Debtor's local counsel.
The Debtor tapped Latham & Watkins LLP as special corporate &
litigation counsel; Lazard Freres & Co., as investment banker; FTI
Consulting, Inc., as restructuring advisor; and Omni Agent
Solutions as notice, claims and balloting agent.
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. Tex. 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.
NATURAL VITALITY: Steven Nosek Named Subchapter V Trustee
---------------------------------------------------------
The Acting U.S. Trustee for Region 12 appointed Steven Nosek, Esq.,
as Subchapter V trustee for Natural Vitality, LLC.
Mr. Nosek, a practicing attorney in Minnesota, 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. Nosek declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Steven B. Nosek, Esq.
2812 Anthony Lane South, Suite 200
St. Anthony, MN 55418
Email: snosek@noseklawfirm.com
About Natural Vitality
Natural Vitality, LLC filed a petition under Chapter 11, Subchapter
V of the Bankruptcy Code (Bankr. D. Minn. Case No. 23-30983) on May
17, 2023, with as much as $50,000 in assets and $100,001 to
$500,000 in liabilities. Judge Katherine A. Constantine oversees
the case.
The Debtor is represented by Joseph Dicker, Esq., at Joseph W.
Dicker, P.A.
NEXTPLAY TECHNOLOGIES: Needs Additional Time to File Form 10-K
--------------------------------------------------------------
NextPlay Technologies, Inc. has determined that it is unable to
file its Annual Report on Form 10-K for the fiscal year ended Feb.
28, 2023 within the prescribed time period without unreasonable
effort or expense.
The Company requires additional time to finalize certain of the
disclosures in its Annual Report, as well as the financial
statements to be filed as part of the Annual Report on Form 10-K.
The additional time is required due to changes in the Company's
management team, accounting team, and a lack of financial resources
available to the Company, which have impacted the Company's ability
to, among other things, finalize the Company's financial statements
and footnotes thereto in a timely manner.
For the foregoing reasons, the Company requires additional time to
complete the procedures relating to its year-end reporting process,
including the completion of the Company's financial statements, and
therefore, the Company is unable to file the Annual Report on May
30, 2023, the prescribed filing due date for the Annual Report.
About NextPlay Technologies
NextPlay Technologies, Inc. (formerly known as Monaker Group Inc.)
-- nextplaytechnologies.com -- is a technology solutions company
offering games, in-game advertising, crypto-banking, connected TV
and travel booking services to consumers and corporations within a
growing worldwide digital ecosystem. NextPlay's engaging products
and services utilize innovative AdTech, Artificial Intelligence and
Fintech solutions to leverage the strengths and channels of its
existing and acquired technologies.
NextPlay reported a net loss of $40.41 million for the year ended
Feb. 28, 2022, compared to a net loss of $1.63 million for the
period from March 6, 2020 to February 28, 2021. As of Nov. 30,
2022, the Company had $103.85 million in total assets, $57.90
million in total liabilities, and $45.95 million in total
stockholders' equity.
Sugar Land, Texas-based TPS Thayer, LLC, the Company's auditor
since 2020, issued a "going concern" qualification in its report
dated June 17, 2022, citing that the Company has suffered recurring
losses from operations and has stockholders' deficit that raise
substantial doubt about its ability to continue as a going concern.
NGL ENERGY: Stephen Cropper Quits as Director
---------------------------------------------
Stephen L. Cropper, a member of the board of directors of the
general partner of NGL Energy Partners LP, notified the Partnership
that he will be resigning from his board position effective June 2,
2023, as disclosed in a Form 8-K filed with the Securities and
Exchange Commission.
About NGL Energy
NGL Energy Partners LP is a diversified midstream energy
partnership that transports, treats, recycles and disposes of
produced water generated as part of the energy production process
as well as transports, stores, markets and provides other logistics
services for crude oil and liquid hydrocarbons. Originally formed
in September 2010, the Company is a Delaware master limited
partnership and its business is currently organized into the
following three segments: (a) Water Solutions segment; (b) Crude
Oil Logistics segment; and (c) Liquids Logistics segment.
NGL Energy reported a net loss of $184.10 million for the year
ended March 31, 2022, a net loss of $639.19 million for the year
ended March 31, 2021, and a net loss of $398.78 million for the
year ended March 31, 2020.
* * *
This concludes the Troubled Company Reporter's coverage of NGL
Energy until facts and circumstances, if any, emerge that
demonstrate financial or operational strain or difficulty at a
level sufficient to warrant renewed coverage.
NGL ENERGY: Swings to $52.5 Million Net Income in FY Ended March 31
-------------------------------------------------------------------
NGL Energy Partners LP filed with the Securities and Exchange
Commission its Annual Report on Form 10-K disclosing net income of
$52.49 million on $8.69 billion of total revenues for the year
ended March 31, 2023, compared to a net loss of $184.10 million on
$7.95 billion of total revenues for the year ended March 31, 2022.
As of March 31, 2023, the Company had $5.45 billion in total
assets, $1.11 billion in total current liabilities, $2.86 billion
in long-term debt, $58.45 million in operating lease obligations,
$111.23 million in other noncurrent liabilities, $551.10 million in
Class D 9.00% Preferred Units, and $767.43 million in total
equity.
A full-text copy of the Form 10-K is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1504461/000150446123000041/ngl-20230331.htm
About NGL Energy
NGL Energy Partners LP is a diversified midstream energy
partnership that transports, treats, recycles and disposes of
produced water generated as part of the energy production process
as well as transports, stores, markets and provides other logistics
services for crude oil and liquid hydrocarbons. Originally formed
in September 2010, the Company is a Delaware master limited
partnership and its business is currently organized into the
following three segments: (a) Water Solutions segment; (b) Crude
Oil Logistics segment; and (c) Liquids Logistics segment.
* * *
This concludes the Troubled Company Reporter's coverage of NGL
Energy until facts and circumstances, if any, emerge that
demonstrate financial or operational strain or difficulty at a
level sufficient to warrant renewed coverage.
NXT ENERGY: Hires MNP LLP as New Auditor
----------------------------------------
NXT Energy Solutions Inc. announced the appointment of MNP LLP as
its auditor for the year ended Dec. 31, 2023, subject to
shareholder approval at the next annual and special meeting of
shareholders.
MNP LLP is a full-service, accounting and business advisory firm in
Canada which is suitable for NXT as the Company embarks on new
initiatives with strategic international partners. NXT expresses
appreciation to KPMG LLP for their long service in the formative
years of the Company. With the resignation of KPMG, MNP will begin
to perform interim review services for NXT in connection with the
Company's fiscal quarter ended June 30, 2023.
About NXT Energy
NXT Energy Solutions Inc. is a Calgary-based technology company
whose proprietary SFD survey system utilizes quantum-scale sensors
to detect gravity field perturbations in an airborne survey method
which can be used both onshore and offshore to remotely identify
areas with exploration potential for traps and reservoirs. The SFD
survey system enables the Company's clients to focus their
hydrocarbon exploration decisions concerning land commitments, data
acquisition expenditures and prospect prioritization on areas with
the greatest potential. SFD is environmentally friendly and
unaffected by ground security issues or difficult terrain and is
the registered trademark of NXT Energy Solutions Inc. NXT Energy
Solutions provides its clients with an effective and reliable
method to reduce time, costs, and risks related to exploration.
NXT Energy a net loss and comprehensive loss of C$6.73 million in
2022, a net loss and comprehensive loss of C$3.12 million in 2021,
a net loss and comprehensive loss of $6.03 million in 2020.
Calgary, Canada-based KPMG LLP, the Company's auditor since 2006,
issued a "going concern" qualification in its report dated March
31, 2023, citing that the Company's current and forecasted cash and
cash equivalents and short-term investments position are not
expected to be sufficient to meet its obligations which raises
substantial doubt about its ability to continue as a going concern.
OPULENT VACATIONS: D. Ray Strong Named Subchapter V Trustee
-----------------------------------------------------------
The U.S. Trustee for Region 19 appointed D. Ray Strong of Berkeley
Research Group as Subchapter V trustee for Opulent Vacations, Inc.
Mr. Strong will be paid an hourly fee of $400 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Strong declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
D. Ray Strong
Berkeley Research Group
201 South Main Street, Suite 450
Salt Lake City, UT 84111
Phone: (801) 364-6233
Email: rstrong@thinkbrg.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 filed a petition under Chapter 11, Subchapter V of the
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.
PARTY CITY HOLDCO: Taps Capstone Capital as Investment Banker
-------------------------------------------------------------
Party City Holdco Inc. seeks approval from the U.S. Bankruptcy
Court for the Southern District of Texas to employ Capstone Capital
Markets, LLC.
Party City Holdco requires the services of an investment banker
solely in connection with the sale of Granmark, S.A. de. C.V., a
non-debtor subsidiary. The firm's services include:
i. formulate a market strategy for the sale transaction;
ii. prepare a confidential information memorandum and
presentations for use in a transaction process;
iii. identify, evaluate and introduce to the Debtor a refined
targeted list of potential strategic and financial acquirers;
iv. initiate contact, arrange introductions, and conduct
telephonic or in-person meetings with prospective acquirers;
v. coordinate the receipt and comparison of any offers or
proposals forthcoming from prospective acquirers;
vi. assess and analyze proposed valuations, transaction
structures, and related terms and conditions;
vii. negotiate in conjunction with, and as requested by, the
Debtor with the prospective acquirers and their respective advisors
to obtain price and terms acceptable to the Debtor;
viii. negotiate other transaction terms, including employment
contracts, board seats, and other relevant non-financial issues;
ix. coordinate with accountants and attorneys during due
diligence to facilitate a timely closing; and
x. negotiate the financial aspects of the definitive
agreements.
The firm will be paid as follows:
i. Retainer Fee. For the first three months of the agreement, a
monthly fee of $50,000.
ii. 2022 Retainer Fee. A non-refundable retainer of $250,000.
Fifty percent (50%) of the 2022 retainer fee shall be credited
against the transaction fee.
iii. Transaction Fee. At the closing of a transaction, a
non-refundable cash fee of $900,000. For the avoidance of doubt,
the remaining cash fees payable to Capstone equal $700,000, which
reflects a retainer credit of $200,000 including 50% credit for
both the retainer fee and the 2022 retainer fee.
Jamie Lisac, managing director at the investment banking firm of
Capstone, disclosed in a court filing that his firm is a
"disinterested person" pursuant to Section 101(14) of the
Bankruptcy Code.
The firm can be reached at:
Jamie Lisac
Capstone Capital Markets LLC
176 Federal St. 3rd Floor
Boston, MA 02110
Tel: (617) 619-3300
Email: jlisac@capstonepartners.com
About Party City Holdco
Party City Holdco Inc. (NYSE: PRTY) is the global leader in the
celebrations industry, with its offerings spanning more than 70
countries around the world. It is also the largest designer,
manufacturer, distributor, and retailer of party goods in North
America. Party City Holdco had 761 company-owned stores as of
September 2022. It is headquartered in Woodcliff Lake, N.J. with
additional locations throughout the Americas and Asia.
Party City Holdco and its domestic subsidiaries sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Texas
Lead Case No. 23-90005). As of Sept. 30, 2022, Party City Holdco
had total assets of $2,869,248,000 against total debt of
$3,022,960,000.
Judge David R. Jones oversees the cases.
The Debtors tapped Paul, Weiss, Rifkind, Wharton & Garrison, LLP as
legal counsel; Moelis & Company, LLC as investment banker;
AlixPartners, LLP as financial advisor; A&G Realty Partners as real
estate advisor; and Kroll as the claims agent.
PricewaterhouseCoopers LLP (PwC) provides accounting and valuation
advisory services, tax-related services, and internal audit
Sarbanes-Oxley Act support services.
Davis Polk & Wardwell, LLP and Lazard serve as legal counsel and
investment banker, respectively, to the ad hoc group of first lien
holders.
The U.S. Trustee for Region 6 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases. The
committee is represented by Pachulski Stang Ziehl & Jones, LLP.
PASO DEL NORTE: Taps State Street as Appraiser
----------------------------------------------
Paso Del Norte Materials, LLC seeks approval from the U.S.
Bankruptcy Court for the Western District of Texas to employ State
Street Appraisals, LLC.
The Debtor requires professional advice from an appraiser to price
its machinery accurately and within the most advantageous market
ranges, and to help find markets.
The firm will receive a flat fee of $9,800 to be paid in advance,
which is borne by the Debtor and its affiliate J.A.R. Concrete,
Inc., in a ratio of 40 percent to J.A.R. and 60 percent to the
Debtor.
Sean Kelley, a partner at State Street Appraisals, disclosed in a
court filing that his firm is a "disinterested person" pursuant to
Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Sean Kelley
State Street Appraisals, LLC
22911 Trailwood Lane
Tomball, TX 77375
Telephone: (713) 471-2834
Email: skelleytx@statestreetappraisals.com
About Paso Del Norte Materials
Paso Del Norte Materials, LLC, a company in El Paso, Texas, filed
its voluntary petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. W.D. Texas Case No. 23-30252) on March 15,
2023, with as much as $50,000 in assets and $1 million to $10
million in liabilities. Judge H. Christopher Mott oversees the
case.
E.P. Bud Kirk, Esq., at E.P. Bud Kirk represents the Debtor as
counsel.
PGX HOLDINGS: Case Summary & 30 Largest Unsecured Creditors
-----------------------------------------------------------
Lead Debtor: PGX Holdings, Inc.
257 East 200 South
Suite 1200
Salt Lake City Utah 84111
Business Description: The Debtors are credit repair service
providers, helping customers repair their
credit and achieve their credit goals.
The Debtors help consumers access and
understand the information contained in
their credit reports, ensure that the
information contained in those reports is
fair, accurate, and complete, and address
other factors that may negatively impact
their credit scores.
Chapter 11 Petition Date: June 4, 2023
Court: United States Bankruptcy Court
District of Delaware
Thirteen affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
PGX Holdings, Inc. (Lead Case) 23-10718
Credit Repair UK, Inc. 23-10719
Credit.com, Inc. 23-10720
Creditrepair.com Holdings, Inc. 23-10721
Creditrepair.com, Inc. 23-10722
eFolks Holdings, Inc. 23-10723
eFolks, LLC 23-10724
John C. Heath, Attorney At Law PC 23-10725
Progrexion ASG, Inc. 23-10726
Progrexion Holdings, Inc. 23-10727
Progrexion IP, Inc. 23-10728
Progrexion Marketing, Inc. 23-10729
Progrexion Teleservices, Inc. 23-10730
Judge: Hon. Craig T. Goldblatt
Debtors'
Bankruptcy
Counsel: Joshua A. Sussberg, P.C.
KIRKLAND & ELLIS LLP
KIRKLAND & ELLIS INTERNATIONAL LLP
601 Lexington Ave
New York, New York 10022
Tel: (212) 446-4800
Fax: (212) 446-4900
Email: joshua.sussberg@kirkland.com
- and -
Spencer Winters, Esq.
Whitney C. Fogelberg, Esq.
Alison J. Wirtz, Esq.
300 North LaSalle
Chicago, Illinois 60654
Tel: (312) 862-2000
Fax: (312) 862-2200
Email: spencer.winters@kirkland.com
whitney.fogelberg@kirkland.com
alison.wirtz@kirkland.com
Debtors'
Local
Bankruptcy
Counsel: Domenic E. Pacitti, Esq.
Michael W. Yurkewicz, Esq.
KLEHR HARRISON HARVEY BRANZBURG LLP
919 North Market Street, Suite 1000
Wilmington, Delaware 19801
Tel: (302) 426-1189
Fax: (302) 426-9193
Email: dpacitti@klehr.com
myurkewicz@klehr.com
- and -
Morton R. Branzburg, Esq.
1835 Market Street, Suite 1400
Philadelphia, Pennsylvania 19103
Tel: (215) 569-3007
Fax: (215) 568-6603
Email: mbranzburg@klehr.com
Debtors'
Financial
Advisor: ALVAREZ & MARSAL NORTH AMERICA, LLC
Debtors'
Investment
Banker: GREENHILL & CO., LLC
Debtors'
Notice &
Claims
Agent: KURTZMAN CARSON CONSULTANTS LLC
Debtors'
Conflicts
Counsel: LANDIS RATH & COBB LLP
Estimated Assets
(on a consolidated basis): $100 million to $500 million
Estimated Liabilities
(on a consolidated basis): $1 billion to $10 billion
The petitions were signed by Chad Wallace as chief executive
officer and president.
A full-text copy of the Lead Debtor's petition is available for
free at PacerMonitor.com at:
https://www.pacermonitor.com/view/O2EJMXY/PGX_Holdings_Inc__debke-23-10718__0001.0.pdf?mcid=tGE4TAMA
Consolidated List of Debtors' 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Consumer Financial Litigation Undetermined
Protection Bureau
1700 G Street, NW
Washington, DC 20552
Attn: Maureen McCown
Title: Enforcement Attorney
Phone: 202-435-9202
Email: maureen.mcowen@cfpb.gov
2. Hawthorne Direct, LLC Trade Payable $1,249,215
1201 West 5th St
Suite T230
Los Angeles, CA 90017
Attn: Jessica Hawthorne-Castro
Title: Chief Executive Officer
Tel: 310-844-0606
Email: jessica.hawthornecastro@hawthornedirect.com
3. Hexaware Technologies Ltd Trade Payable $640,672
Bldg 152
Millenium Business Park
Mahape, Navi Mumbai
Maharashtra, 0 400 710, India
Attn: Divya Pradeepkumar
Title: Senior Executive
Phone: 91-22-67919595
Email: divyap@hexaware.com
4. Argano, LLC Trade Payable $606,979
6100 W Plano Parkway
Suite 1800
Plano, TX 75093
Attn: Chip Register
Title: Chief Executive Officer
Phone: 214-778-2104
Email: chip.register@argano.com
5. Trans Union Inc. Trade Payable $566,216
555 W. Adams Street
Chicago, IL 60661
Attn: Christopher A. Cartwright
Title: President and Chief Executive Officer
Phone: 312-985-2000
Fax: 312-466-7986
Email: ccartwright@transunion.com
6. Experian Trade Payable $427,861
PO Box 881971
Los Angeles, CA 90088-1971
Attn: Llyod Pitchford
Title: Chief Financial Officer
Tel: 714-830-7000
Fax: 714-830-2449
Email: lloyod.pitchford@experiangroup.com
7. Ispot.TV, Inc. Trade Payable $284,300
15831 NE 8th St #100
Bellevue, WA 98008
Attn: Sean Muller
Title: Founder and Chief Executive Officer
Phone: 425-590-9727
Email: sean.muller@ispot.tv
8. Microsoft Online, Inc. Trade Payable $237,520
One Microsoft Way
Redmond, WA 98052
Attn: Miko Lacsamana
Title: Senior Account Manager
Phone: 888-725-1047
Email: mikol@microsoft.com
9. FICO (Fair Isaac Corporation) Trade Payable $230,475
3661 Valley Centre Drive
Suite 500
San Diego, CA 92130
Attn: Will Lansing
Title Chief Executive Officer
Phone: 408-817-9100
Email: wlansing@fico.com
10. Site Selection Group Trade Payable $207,270
8235 Douglas Ave #500
Dallas, TX 75205
Attn: King White
Title: Chief Executive Officer
Phone: 214-271-0582
Email: kwhite@siteselectiongroup.com
11. Facebook Inc. Trade Payable $197,216
151 N Franklin St.
Chicago, IL 60606
Attn: Walter Little
Title Account Manager,
Global Business Group - Meta
Advertising
Phone: 240-602-0139
Email: walterlittle@meta.com
12. Sharonda Taylor Legal Settlement $155,070
c/o The Law Offices of Daniel Balsam
2601C Blanding Avenue #271
Alameda, CA 94501
Attn: Dan Balsam
Title: Counsel
Phone: (415) 265-1123
Email: legal@danbalsam.com
13. Sandra Wilson Legal Settlement $143,781
c/o The Law Offices of Daniel Balsam
2601C Blanding Avenue #271
Alameda, CA 94501
Attn: Dan Balsam
Title: Counsel
Phone: (415) 265-1123
Email: legal@danbalsam.com
14. Invoca, Inc. Trade Payable $90,133
1025 Chapala Street
Santa Barbara, CA 93101
Attn: Gregg Johnson
Title: Chief Executive Officer
Phone: 877-635-0792
Email: gjohnson@invoca.com
15. Drips Holdings LLC Trade Payable $74,570
1700 W Market St
Suite 173
Akron, OH 44308
Attn: Aaron Christopher Evans
Title: Chief Executive Officer
Phone: 512-643-7477
Email: ac@drips.com
16. Hoodoo Digital, LLC Trade Payable $73,818
132 SOuth State St
Salt Lake City, UT 84111
Attn: Andy Wakefield
Title: Co-Founder
Phone: 801-896-9667
Email: andy@hoodoo.digital
17. Thomas Ablao Trade Payable $61,750
Dba Noble Connections
2750 E Oak Hill Dr
Unit 31
Ontario, CA 91761
Attn: Thomas Ablao
Title: Managing Partner
18. Calculated Research & Technology Trade Payable $58,570
629 E Quality Dr
Suite 201
American Fork, UT 84003
Attn: Tim Aguilar
Title: Founder and Chief Executive Officer
Phone: 801-222-0930
Email: tima@cr-t.com
19. Merchant Advocate LLC Trade Payable $22,930
281 Route 34
Suite 101
Colts Neck, NJ 07722
Attn: Eric Cohen
Title: Chief Executive Officer
Phone: 888-890-8822
Fax: 732-862-1129
Email: eric@merchantadvocate.com
20. America One Funding (Quinstreet) Trade Payable Undetermined
950 Tower Lane
6th Floor
Foster City, CA 94404
Attn: Alex Yunerman
Title: Senior Vice President - Quinsteet
Phone: 408-568-1690
Email: ayunderman@quinstreet.com
21. Atwave, LLC Trade Payable Undetermined
804 Ocean Drive
Miami Beach, FL 33139
Attn: Amanda Coleman
Title: Founder and Chief Executive Officer
Phone: 855-890-3313
Email: amanda@atwave.com
22. Blackoptek CE, Inc. Trade Payable Undetermined
(Call Engine Inc.)
3780 14th Avenue
Suite 209
Markham, ON L3R 9Y5 Canada
Attn: Ryan McVey
Title: Chief Executive Officer
Phone: 866-973-1485
Email: ryan@callengine.com
23. Bradley Lead Group Trade Payable Undetermined
1195 Maddox Ct
Westminster, CO 80023
Attn: Billy Ness
Title: Owner
Phone: 303-919-6901
Email: billyness@bradleyleadgroup.com
24. Cicola Investments Trade Payable Undetermined
(North Point Direct)
12540 Broadwell Road
Suite 2201
Miton, GA 30004
Attn: Roy Cicola
Title: Principal
Phone: 917-601-0420
Email: roy@northpointdirect.com
25. Credit Sesame, Inc. Trade Payable Undetermined
444 Castro Street
Suite 500
Mountain View, CA 94041
Attn: Adrian Nazari
Title: Founder and Chief
Executive Officer
Email: anazari@creditsesame.com
26. Equifax Consumer Services Trade Payable Undetermined
1550 Peachtree Street NW
Atlanta, GA 30309
Attn: Mark Begor
Title: Chief Executive Officer
Phone: 404-885-8732
Email: mark.begor@equifax.com
27. Google Inc. Trade Payable Undetermined
Dept 33654
PO Box 39000
San Francisco, CA 94139
Attn: Brooks Arundel
Title: Account Executive,
New Business Strategy
Google Customer Solutions
Phone: (703) 835-4607
Fax: 650-253-0001
Email: barundel@google.com
28. Lending Tree Trade Payable Undetermined
1415 Vantage Park Drive
Suite 700
Charlottle, NC 28203
Attn: Doug Lebda
Title: Founder and Chief Executive Officer
Phone: 800-505-7916
Email: doug.lebda@lendingtree.com
29. TY Weston Severance Undetermined
Address on File Payable
30. ULTRA98 Trade Payable Undetermined
421-721 Keele St.
Concord, ON L4K1Z8 Canada
Attn: Muzaffar Abbas
Title: Chief Executive Officer
Phone: 647-781-4849
Email: muzaffar@ultra98.com
PHOTIZO LLC: Court OKs Final Cash Collateral Access
---------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Indiana,
Indianapolis Division, authorized Pholizo LLC, dba Fish Window
Cleaning, to use cash collateral on final basis in accordance with
the budget.
The Debtor requires the use of cash collateral to continue its
operations.
In 2022, the Debtor obtained a loan from a merchant cash advance
lender to address a liquidity crunch. Like so many other small
businesses, the Debtor then obtained more loans from other merchant
cash advance lenders as it struggled to keep up with the daily and
weekly payments.
The Debtor has performed a preliminary investigation and analysis
of UCC filings, and based upon that investigation believes that the
following parties may assert a lien on the Debtor's cash
collateral:
i. Celtic Bank Corporation;
ii. Channel Partners Capital;
iii. Everest Business Funding;
iv. Ocean Funding Corporation;
v. On Deck / ODK Capital, LLC; and
vi. White Road Capital LLC, Series 155566 dba GFE Holdings
(Global Funding).
The Court held that any secured party with an interest in cash
collateral will be granted a replacement lien in the cash
collateral. The Adequate Protection Liens will be provided in the
post-petition property of the Debtor of the same nature and to the
same extent and in the same priority as any Secured Creditor held
in the cash collateral on the Petition Date.
The automatic stay imposed by 11 U.S.C. section 362(a) is modified
to permit the Debtor to grant the Adequate Protection Liens and
otherwise implement the terms of the Final Order.
A copy of the motion is available at https://urlcurt.com/u?l=DopX6O
from PacerMonitor.com.
A copy of the order is available at https://urlcurt.com/u?l=zQNZYN
from PacerMonitor.com
About Photizo LLC
Photizo LLC filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. S.D. Ind. Case No. 23-02065) on May 16,
2023, with $50,001 to $100,000 in assets and $100,001 to $500,000
in liabilities.
Judge James M. Carr oversees the case.
The Debtor is represented by John Joseph Allman, Esq., at Hester
Baker Krebs, LLC.
PIERLO INC: Gets OK to Hire Allen Jones & Giles as Legal Counsel
----------------------------------------------------------------
Pierlo, Inc. received approval from the U.S. Bankruptcy Court for
the District of Arizona to employ Allen, Jones & Giles, PLC as its
bankruptcy counsel.
The firm's services include:
a. providing the Debtor with legal advice with respect to its
Chapter 11 bankruptcy proceeding;
b. representing the Debtor in negotiations involving
creditors;
c. representing the Debtor at court hearings; and
d. preparing legal papers necessary to assist in the Debtor's
reorganization.
The firm will be paid at these rates:
Thomas H. Allen, Member $485 per hour
Michael A. Jones, Member $485 per hour
Philip J. Giles, Member $450 per hour
David B. Nelson, Associate $325 per hour
Legal Assistants and Law Clerks $175 to $215 per hour
The Debtor paid the firm a retainer of $31,228.
Thomas Allen, Esq., a partner at Allen, Jones & Giles, disclosed in
a court filing that his firm is a "disinterested person" pursuant
to Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Thomas H. Allen, Esq.
David B. Nelson, Esq.
Allen, Jones & Giles, PLC
1850 N. Central Ave., Suite 1150
Phoenix, AZ 85004
Tel: (602) 256-6000
Fax: (602) 252-4712
Email: tallen@bkfirmaz.com
dnelson@bkfirmaz.com
About Pierlo Inc.
Pierlo, Inc., a company in Tempe, Ariz., provides cleaning,
finishing, polishing and sealing systems for travertine, marble and
limestone. It conducts business under the name Baker's Travertine
Power Clean.
Pierlo filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. D. Ariz. Case No. 23-03341) on May 19,
2023, with $72,245 in assets and $1,474,574 in liabilities. Pierlo
President Robert Michael Vuolo, Jr. signed the petition.
Judge Eddward P. Ballinger, Jr. oversees the case.
Allen, Jones & Giles, PLC serves as the Debtor's legal counsel.
PIERLO INC: Joseph Cotterman Named Subchapter V Trustee
-------------------------------------------------------
The U.S. Trustee for Region 14 appointed Joseph Cotterman as
Subchapter V trustee for Pierlo, Inc.
Mr. Cotterman 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. Cotterman declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Joseph E. Cotterman
5232 West Oraibi Drive
Glendale, AZ 85308
Email: Cottermail@cox.net
Telephone: (480) 353-0540
About Pierlo Inc.
Pierlo, Inc., a company in Tempe, Ariz., provides cleaning,
finishing, polishing and sealing systems for travertine, marble and
limestone. It conducts business under the name Baker's Travertine
Power Clean.
Pierlo filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. D. Ariz. Case No. 23-03341) on May 19,
2023, with $72,245 in assets and $1,474,574 in liabilities. Pierlo
President Robert Michael Vuolo, Jr. signed the petition.
Judge Eddward P. Ballinger, Jr. oversees the case.
Allen, Jones & Giles, PLC serves as the Debtor's legal counsel.
PORTER'S PENINSULA: Kimberly Clayson Named Subchapter V Trustee
---------------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed Kimberly Ross
Clayson, Esq., as Subchapter V trustee for Porter's Peninsula
Logging LLC.
Ms. Clayson, an attorney at Taft Stettinius & Hollister, LLP, will
be paid an hourly fee of $350 for her services as Subchapter V
trustee and will be reimbursed for work-related expenses incurred.
Ms. Clayson declared that she is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Kimberly Ross Clayson, Esq.
Taft Stettinius & Hollister, LLP
27777 Franklin Rd., Ste. 2500
Southfield, MI 48034
Phone: (248) 727.1635
Email: kclayson@taftlaw.com
About Porter's Peninsula Logging
Porter's Peninsula Logging, LLC is a logging company in Atlanta,
Mich.
Porter's Peninsula Logging filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. E.D. Mich. Case No.
23-20563) on May 19, 2023, with up to $500,000 in assets and up to
$10 million in liabilities. Todd M. Porter, sole member, signed the
petition.
Judge Daniel S. Oppermanbaycity oversees the case.
Rozanne M. Giunta, Esq., at Warner Norcross + Judd, LLP represents
the Debtor as legal counsel.
PURDUE PHARMA: Appeals Court Affirms Immunity for Sacklers
-----------------------------------------------------------
Jan Hoffman of the New York Times reports that members of the
Sackler family, the billionaire owners of Purdue Pharma, will
receive full immunity from all civil legal claims — current and
future — over their role in the company's prescription opioids
business, a federal appeals court panel ruled on Tuesday, May 23,
2023.
The ruling gives the family the sweeping protection that it has
been demanding for years, in exchange for payment of up to $6
billion of the family's fortune to help address the ongoing ravages
of the opioid crisis.
It removes a major hurdle for that money, plus the company’s
initial outlay of $500 million, to be dispensed to states and
communities for addiction treatment and prevention programs, needs
that soared during an epidemic that has grown far beyond abuse of
Purdue's signature prescription painkiller drug, OxyContin.
Unless it is successfully appealed to the Supreme Court -- an
unlikely prospect, legal experts said -- the new ruling will close
the door on Purdue's hotly contested bankruptcy restructuring,
which began nearly four years ago. The bankruptcy is at the core
of a plan intended to resolve thousands of opioid cases against the
company nationwide, plus roughly 400 against individual Sackler
family members.
According to the plan, Purdue would be restructured into a new
entity called Knoa Pharma that will manufacture medications for
addiction reversal and treatment as well as continue to produce
other drugs, including OxyContin. It will be overseen by a public
board. Over time, Knoa Pharma is expected to contribute at least
many hundreds of millions dollars more to plaintiffs.
Some close observers of the Purdue case applauded the ruling,
calling it a pragmatic reading that could now loosen up billions of
dollars for states, local governments, tribes and individuals who
sued Purdue for its early and aggressive role in marketing
OxyContin as a nonaddictive pain treatment.
"It's time to put this bankruptcy behind us. Victims have been
waiting for too long to recover," said Ryan Hampton, an advocate
for opioid victims who served as the co-chairman of the Purdue
creditor's committee.
He added: "The system is far from perfect, but the true injustice
will be if this victims' settlement is held up any longer."
But others said the Sacklers had received a significant pass.
"Bankruptcy was not meant to be an alternative justice system for
powerful corporations and their superrich owners. But that is the
effect and perception when courts read the law to provide
extraordinary protections well beyond what Congress authorized,"
said Melissa B. Jacoby, a law professor at the University of North
Carolina at Chapel Hill.
A bankruptcy filing typically puts a temporary halt on a company's
creditors, including on lawsuits. The major issue in this case was
that even though Purdue had filed for bankruptcy, the Sacklers, as
individuals, had not. As a result, plaintiffs who fought the plan
contended, the Sacklers should not receive the benefit of their
company's liability protection.
The Sacklers stepped down from Purdue's board of directors in 2018
and have had no direct involvement in the company since then.
Judge Eunice C. Lee of the United States Court of Appeals for the
Second Circuit, who wrote Tuesday's opinion for a three-judge
panel, found that the bankruptcy code permits corporate owners who
haven't filed for personal bankruptcy to receive liability
protection under certain circumstances.
"Bankruptcy is inherently a creature of competing interests,
compromises, and less than perfect outcomes," she wrote. "Because
of these defining characteristics, total satisfaction of all that
is owed — whether in money or in justice — rarely occurs."
Quoting from a bankruptcy ruling in a 2019 case that did not
involve Purdue, Judge Lee also stressed that the releases granted
to the Sacklers "'are not a merit badge that somebody gets in
return for making a positive contribution to a restructuring,' nor
are they 'a participation trophy' or a 'gold star for doing a good
job.'"
The Sacklers' liability protection does not extend to criminal
prosecutions, should any ever be filed.
The Opioid Crisis
New Legislation: The House of Representatives passed a bill that
would make permanent harsh criminal penalties and strict controls
on fentanyl-related drugs.
2022 Deaths: Nearly 110,000 people died last year of drug overdoses
in the United States, a staggering figure that nonetheless
represents a plateau after two years of sharp increases.
Buprenorphine: Despite the continuing rise in opioid overdose
deaths, a new study found that this effective addiction treatment
is still drastically underprescribed in the United States,
especially for Black patients.
Xylazine: The White House designated the common animal
tranquilizer, which can cause horrific wounds and, when mixed with
fentanyl, increase the likelihood of overdose, as an "emerging drug
threat."
Purdue filed for bankruptcy in September 2019, as the rising opioid
cases against the company turned into a torrent.
Tuesday's ruling came more than a year after oral arguments before
the Second Circuit panel. As months passed, thousands of litigants
expressed growing frustration that the case remained unresolved,
with promised payments held in abeyance even as the opioid epidemic
itself, now marked by fentanyl use, continued to surge.
The ruling was a win for Purdue, which appealed a decision by a
federal district judge who had overturned a settlement that had
originally been approved by a bankruptcy court judge in 2021. But
most of the parties that had appealed the 2021 plan eventually
wound up dropping their objections, after the Sacklers increased
their payout offer by roughly $1.73 billion.
The only objectors who remain include several Canadian
municipalities, a few individuals and the U.S. Trustee, a Justice
Department program that is the watchdog of the bankruptcy system.
Ms. Jacoby, the North Carolina law professor, said that because the
last objecting states had agreed to the Purdue plan, the U.S.
Trustee’s argument for pursuing the case would not be robust.
The U.S. Trustee declined to comment on Tuesday's ruling.
In a statement after the ruling was issued, Purdue called the
decision "a victory for Purdue's creditors, including the states,
local governments and victims who overwhelmingly support the plan
of reorganization."
"Our focus going forward is to deliver billions of dollars of value
for victim compensation, opioid crisis abatement and overdose
rescue medicines," the statement continued. "Our creditors
understand the plan is the best option to help those who need it
most, the most fair and expeditious way to resolve the litigation
and the only way to deliver billions of dollars in value
specifically to fund opioid crisis abatement efforts."
The families of two founding brothers of Purdue, Dr. Mortimer
Sackler and Dr. Raymond Sackler, both deceased, said in a joint
statement: "The Sackler families believe the long-awaited
implementation of this resolution is critical to providing
substantial resources for people and communities in need. We are
pleased with the Court's decision to allow the agreement to move
forward and look forward to it taking effect as soon as possible."
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.
PURDUE PHARMA: Sacklers' Win Deepening Courts' Split Over Releases
------------------------------------------------------------------
James Nani of Bloomberg Law reports that Purdue Pharma LP's appeals
court win granting its Sackler family owners immunity from future
opioid lawsuits is deepening a circuit split over controversial
litigation releases.
The opinion in early June 2023 from the US Court of Appeals for the
Second Circuit reversed a district court decision and found the
drugmaker's owners, members of the billionaire Sackler family, can
be shielded against future opioid lawsuits as part of a bankruptcy
plan. The Sacklers, in exchange, have agreed to pay up to $6
billion and give up their ownership of the company to resolve
widespread litigation accusing them of contributing to the national
opioid epidemic.
In a practical sense, the decision allows a process to begin for
opioid victims and their families to receive some compensation.
Legally, the opinion -- which comes from one of the most
influential US appeals courts -- is expected to embolden businesses
to use bankruptcy to address mass tort litigation.
The ruling reaffirms that corporate debtors can go to bankruptcy
courts in the Second Circuit to pursue plans of reorganization that
contain limited, non-consensual releases for individuals and
entities that are not in bankruptcy, even as three other circuits
have rejected such protections. Those releases can eliminate
potential plaintiffs' ability to pursue certain claims down the
road.
Circuit Split
US District Judge Colleen McMahon took the restructuring world by
surprise in December 2021 when she struck down Purdue's bankruptcy
plan, specifically finding that the releases were not permissible
under bankruptcy law.
That opinion caused many restructuring professionals to worry that
the landscape for third-party, non-consensual releases could
dramatically change in the Southern District of New York, one of
the most popular venues for large Chapter 11 cases, according to
Lindsey Simon, a professor at the University of Georgia School of
Law.
If the Second Circuit upheld McMahon's ruling, a major jurisdiction
for mass tort cases like Purdue would no longer be a desirable
place to force a global settlement, Simon said.
"I think it will further encourage companies to do whatever they
can to use Chapter 11 when they want to resolve mass tort
exposure," Simon said, noting bankruptcy can provide superior
relief over other venues.
The Fifth, Ninth, and Tenth Circuit Courts of Appeal all ban
similar releases. While the Second Circuit's opinion isn't binding
on other circuits, it serves as "persuasive authority" for other
courts to reject the arguments McMahon made in her district court
opinion, said Tancred Schiavoni of O’Melveny & Myers LLP, an
attorney who often represents insurers in bankruptcies.
"Resolution of the uncertainty over how the Second Circuit would
rule in Purdue will also clear the way for debtors facing mass tort
liabilities to seek bankruptcy protection in the Second Circuit,"
Schiavoni said.
A Seven-Factor Test
Before McMahon's opinion, conventional wisdom had been that
non-consensual, third-party releases were acceptable in the Second
Circuit. On Tuesday, May 24, 2023, the Second Circuit made that
explicit.
The Second Circuit emphasized that debtors should consider a
seven-factor test when embedding releases into their plans. Those
factors include that the releases be narrowly tailored, that their
monetary contributions be critical to a plan, and that the success
of the plan hinge on those releases, according to the opinion.
While binding, the Second Circuit's opinion still gives judges a
lot of discretion over how they use those factors, said Melissa
Jacoby, a bankruptcy professor at the University of North Carolina
School of Law.
Bankruptcy judges can decline approval of such releases even if a
debtor presents some evidence satisfying all seven factors, making
winning such releases an uphill battle, she said.
"While I am troubled by the message the decision sends to the
public, that bankruptcy is an alternative justice system for big
companies and their super-rich owners, the details of the decision
make clear that the path to getting a release is complicated and
expensive," Jacoby said. "Still, the opinion keeps the leverage on
the side of the defendants by keeping the option open."
Unsettled
Bound by precedent, a concurrence authored by Circuit Judge Richard
Wesley to Tuesday's, May 23, 2023, opinion reads as more of a
"dissent in disguise," Simon said.
Wesley's concurrence makes clear the "weaknesses of the analysis of
the majority decision," Jacoby said. She said she agreed with
Wesley that relying on two "generic" provisions of bankruptcy law
to allow such releases were weak.
Opponents of the settlement could still appeal the decision to the
full panel of Second Circuit judges or the Supreme Court.
Wesley's opinion notes several reasons why third-party releases may
be illegal. But he acknowledged the three-judge panel was bound by
prior Second Circuit precedent in the cases of In re Drexel Burnham
Lambert Group, Inc. and In re Metromedia 11 Fiber Network, Inc.,
said Proskauer Rose LLP bankruptcy attorney Martin Bienenstock.
Those precedents can only be overruled by the Supreme Court or the
Second Circuit sitting en banc, he said.
Samir Parikh, a bankruptcy law professor at Lewis & Clark Law
School, said the Purdue opinion highlights a distinct circuit split
that includes "messy constitutional issues."
"The Appellants may be willing to appeal to the Supreme Court,"
Parikh said. "In fact, Judge Wesley's concurring opinion ostensibly
asks for Congress or the Supreme Court to intervene to establish
uniformity on this foundational issue."
Bienenstock noted that the Second Circuit only dealt with one
constitutional issue: due process. But others remain, he said, such
as whether each creditor will be paid just compensation for the
claim against the Sackler family that's taken from them.
"The issue of bankruptcy courts ordering third-party releases is
far from settled," Bienenstock said.
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 were 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.
RADIOLOGY PARTNERS: S&P Cuts ICR to 'CCC+' on Tightening Liquidity
------------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on El Segundo,
Calif.-based Radiology Partners Holdings LLC to 'CCC+' from 'B-'.
At the same time, S&P lowered its issue-level rating on the
company's secured debt to 'CCC+' from 'B-'. The '3' recovery rating
on the debt is unchanged. S&P also lowered its issue-level rating
on Radiology Partners' unsecured second-lien term loan to 'CCC-'
from 'CCC'.
S&P said, "The negative outlook reflects our expectation that cash
flow deficits will continue over the next 12 months, further
pressuring liquidity, and raises the possibility of an
unsustainable capital structure. It also reflects the increasing
risk of a debt restructuring or below par repurchase, which we
could view as distressed and tantamount to default.
"The downgrade reflects Radiology Partners' constrained liquidity
cushion and the possibility of an unsustainable capital structure
over the medium term. We expect rising labor costs and higher
start-up costs for new sites will pressure EBITDA margins and cash
flows, despite cost-saving initiatives and increased subsidies
revenue. The company is also currently struggling with delayed
collections on receivables due to the No Surprise Act-related
(NSA)arbitration process. Also, over the past couple of quarters
following favorable Texas ruling, Radiology Partners has seen
payors coming back in-network given unfavorable economics, which
eventually will reduce company's NSA exposure in our view. As of
March 31, 2023, Radiology Partners' liquidity consists of $70
million of cash on hand and about $105 million available under its
revolver. While we believe that the liquidity is sufficient to
cover the company's uses of cash, including debt amortization,
working capital usage, maintenance capital expenditures, and tax
distributions to shareholders and distributions to non-controlling
interest (NCI) shareholders for next 12 months, the declining
liquidity cushion leaves little room for any additional setbacks or
operational challenges."
That said, S&P also understand Radiology Partners' cost saving
initiatives, increased focus on organic growth than acquisitions,
continued efforts to manage labor market conditions and ability to
increase subsidies from providers, will eventually improve
profitability and credit metrics.
Significant debt maturities loom in 2025, along with the revolver
becoming current in about six months, elevates refinancing risk
given current capital market conditions. Radiology Partners'
capital structure includes a $440 million revolver ($105 million
undrawn as of March 31, 2023) maturing in November 2024, a $1.6
billion first-lien term loan due July 2025, $800 million of secured
notes due July 2025, and $638 million of unsecured notes due July
2028. Given prevailing capital market conditions, S&P expects
Radiology Partners may have difficulty refinancing its capital
structure at favorable terms and, even assuming a successful
refinancing, may be burdened by higher interest expense.
Radiology Partners' focus on mergers and acquisitions has raised
leverage, which will remain high given pressure on EBITDA margins.
The company has grown through debt-financed acquisitions over the
past seven years as it seeks to enhance its scale in a fragmented
but consolidating industry. However, the company has been
generating cash flow deficits the past two years and the pressure
on margins from payors and labor market challenges will lead to
further outflows. S&P expects 10.0x-10.5x debt to EBTIDA in 2023,
falling to below 9.5x in 2024, as the company executes cost savings
and improvements in EBITDA. Radiology Partners has been
aggressively acquiring companies since inception increasing debt
and generating immaterial free cash flows, thus S&P expects the
company to remain highly leveraged.
S&P's negative outlook reflects its expectation that the persistent
cash flow deficits will continue over the next 12 months, due
mainly to increased working capital usage as the arbitration
process under the No Surprise Act delays receivable collections.
The continued cash outflows, tightening liquidity, and looming
maturities on the revolver and debt increase the potential risk of
default.
S&P could lower the rating if the deterioration in Radiology
Partners' liquidity accelerated due to greater unmitigated costs or
further delays in cash collections, increasing the likelihood of a
debt restructuring or a distressed exchange in the near future.
S&P could raise the issuer credit rating if the company materially
improved its profitability, generated sustained free operating cash
flow, and addressed the looming maturity on the revolver.
ESG credit indicators: E-2, S-2, G-3
S&P said, "Governance is a moderately negative consideration. Our
assessment of the company's financial risk profile as highly
leveraged reflects corporate decision-making that prioritizes the
interests of the controlling owners, in line with our view of the
majority of rated entities owned by private-equity sponsors. Our
assessment also reflects the generally finite holding periods and a
focus on maximizing shareholder returns."
RAP OPERATING: Seeks Access to Homeland Federal's Cash Collateral
-----------------------------------------------------------------
Rap Operating, L.L.C. asks the U.S. Bankruptcy Court for the
Western District of Louisiana, Alexandria Division, for authority
to use the cash collateral of Homeland Federal Savings Bank and
provide adequate protection.
The Debtor needs to use the cash collateral in the ordinary course
of the Debtor's business to pay the expenses of its operation
during the course of the case.
Among the assets of the Debtor' estate are accounts receivable from
operations as well as equipment located primarily in LaSalle
Parish, Louisiana. This asset is subject to a lien in favor of
Homeland Federal Savings Bank.
The vehicle is insured with full coverage against loss with the
Louisiana Farm Bureau Casualty Insurance Company under Policy No. A
R64056, with GM Financial shown as lienholder.
The Debtor seeks permission to use this asset and provide adequate
protection thereof in the form of cash payment in the amount of
$1,000 per month representing the depreciation of the asset as
required by law.
The Debtor does not believe there is any significant amount of
depreciation of this asset, as it is regularly inspected and
maintained.
A copy of the motion is available at https://urlcurt.com/u?l=9d1RSW
from PacerMonitor.com.
About Rap Operating, L.L.C.
Rap Operating, L.L.C. sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. W.D. La. Case No. 23-80316) on June 2,
2023. In the petition signed by James E. Robbins, managing member,
the Debtor disclosed up to $100,000 in assets and up to $10 million
in liabilities.
Thomas R. Willson, Esq. represents the Debtor as legal counsel.
RCM-TO GO: Nathan Smith Named Subchapter V Trustee
--------------------------------------------------
The U.S. Trustee for Region 17 appointed Nathan Smith, Esq., a
practicing attorney in Irvine, Calif., as Subchapter V trustee for
RCM-TO GO, LLC.
Mr. Smith will be paid an hourly fee of $505 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Smith declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Nathan F. Smith
2112 Business Center Drive
Irvine, CA 92612
Phone: (949) 252-9400
Email: nathan@mclaw.org
About RCM-TO GO
RCM-TO GO, LLC filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. D. Nev. Case No. 23-12014) on May 19,
2023, with as much as $50,000 in assets and $500,001 to $1 million
in liabilities. Judge Natalie M. Cox oversees the case.
The Debtor is represented by Seth D. Ballstaedt, Esq., at Fair Fee
Legal Services.
RECONDITION PROS: Unsecureds to Get 100% in Subchapter V Plan
-------------------------------------------------------------
Recondition Pros Penn, LLC, filed with the U.S. Bankruptcy Court
for the Eastern District of Pennsylvania a Subchapter V Plan of
Reorganization dated June 1, 2023.
The Debtor is a Pennsylvania limited liability company, whose
principal place of business is located at 2700 Castor Avenue,
Philadelphia, Pennsylvania 19134 (the "Leased Premises").
Debtor is solely owned by Recondition Pros, LLC, an Indiana limited
liability corporation (the "Parent"). The Debtor was formed in 2021
with capital from its Parent for the purpose of providing collision
repair services in Pennsylvania, offering both brick and mortar
services at its Leased Premises as well as providing mobile
services to its customers.
The Debtor's income is generated from its sales and services to
retail and commercial clients for services, including rim repair,
auto body repair, paint less dent removal and automotive detailing.
The Debtor does not have any secured debt. The Debtor's current
business model is not working as anticipated in the Pennsylvania
market and accordingly, the Debtor seeks to reject the lease for
the Leased Premises and restructure its business platform.
The Debtor's bankruptcy enables the Debtor, under this Court's
supervision, to preserve its operating business, streamline its
business model, reject its cumbersome lease and preserve the income
stream from which it can propose to repay creditors' allowed claims
under a plan.
The Plan Proponent's financial projections show that the Debtor
will have projected disposable income of $32,728.80.00 per month,
or until such time as all allowed claims are paid in full. The
final Plan payment is expected to be paid on or before December
2023.
The Plan proposes to pay the Debtor's creditors from cash flow from
operations of the Debtor's mobile services.
The Plan proposes to pay administrative and priority claims in full
unless otherwise agreed. The Debtor estimates approximately 100%
will be paid on account of general unsecured claims pursuant to the
Plan.
Class 2(a) consists of General Unsecured Claims. Allowed Class 2(a)
Claims, determined as of the Effective Date, shall be paid pro
rata, commencing on the Initial Distribution Date. The allowed
unsecured claims total $60,662.60.
Class 2(b) consists of Landlord Unsecured Rejection Claims. The
allowed Class 2(b) rejection claims, if any, shall be paid, in the
first month following entry of a final order allowing such claim.
The allowed class 2(b) claim shall be paid from the remainder of
any funds held by the Trustee after payment of Class 1 and Class
2(a) claims, approved Professional Fees and any amounts due to the
United States Trustee and the Subchapter V Trustee.
Class 3 consists of Equity Interests. Upon the Effective Date of
the Plan, Recondition Pros, LLC shall retain its 100% equity
ownership interest in the Debtor.
The Plan will be funded from ongoing revenue from the Debtor and/or
amounts recovered from the Landlord Litigation. On or before the
Effective Date, the Debtor will transfer $90,000.00 to the Trustee
(the "Effective Date Funds"). Any remainder of the Effective Date
Funds will be held in escrow pending resolution of the Landlord
Litigation or until 90 after the Effective Date, whichever is
earlier (the "Initial Distribution Date"). Any additional amounts
needed to fund the Plan after the Initial Distribution Date, if not
recovered from the Landlord Litigation, will come from the Debtor's
ongoing business revenue to be paid pro rata.
A full-text copy of the Subchapter V Plan dated June 1, 2023 is
available at https://urlcurt.com/u?l=iFMQAM from PacerMonitor.com
at no charge.
Attorney for the Debtor:
Lara S. Martin, Esq.
Bernstein-Burkley, P.C.
601 Grant Street, 9th Floor
Pittsburgh, PA 15219
Phone: (412) 456-8102
Fax: (412) 456-8135
Email: lmartin@bernsteinlaw.com
About Recondition Pros Penn
Recondition Pros Penn LLC -- https://reconditionpros.com/ -- is a
high-volume Collision Repair Company that offers auto glass repair
and replacement, paintless dent repair, and wheel repair services.
Recondition Pros Penn sought protection for relief under Subchapter
V of Chapter 11 of the Bankruptcy Code (Bankr. E.D. Pa. Case No.
23-10639) on March 3, 2023, with $100,001 to $500,000 in assets and
$50,001 to $100,000 in liabilities.
Judge Patricia M Mayer presides over the case.
Lara Shipkovitz Martin, Esq., at Bernstein Burkley, PC, is the
Debtor's counsel.
RIGHT CHOICE: Maria Yip Appointed as Chapter 11 Trustee
--------------------------------------------------------
The U.S. Trustee for Region 21 asked the U.S. Bankruptcy Court for
the Southern District of Florida to approve the appointment of
Maria Yip as Chapter 11 trustee for Right Choice Vending/Coffee,
LLC.
To the best of the U.S. Trustee's knowledge, Ms. Yip's connections
with Right Choice, creditors and other parties involved in Right
Choice's Chapter 11 case are limited to the connections set forth
in Ms. Yip's verified statement.
A copy of the application is available for free at
https://urlcurt.com/u?l=Z1LYXc from PacerMonitor.com.
About Right Choice Vending/Coffee
Right Choice Vending/Coffee, LLC operates a vending machine
business with machines located throughout the State of Florida. It
provides drinks, snacks and food to various businesses, industries,
schools, universities, hospital systems and governmental agencies.
Right Choice sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 23-11331) on Feb. 19,
2023, with as much as $50,000 in both assets and liabilities. Judge
Scott M. Grossman oversees the case.
Mark S. Roher, Esq., at the Law Office of Mark S. Roher, P.A.,
represents the Debtor as legal counsel.
RJT FOOD: Salvatore LaMonica Appointed as Chapter 11 Trustee
------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of New York
approved the appointment of Salvatore LaMonica, Esq., as Chapter 11
Trustee for RJT Food & Restaurant, LLC.
The approval comes upon the application filed by the U.S. Trustee
for Region 2 to appoint a bankruptcy trustee to take over RJT's
Chapter 11 case.
Mr. LaMonica is an attorney and a partner at LaMonica Herbst &
Maniscalco, LLP, in Wantagh, N.Y.
In court papers, Mr. LaMonica disclosed that he does not have an
interest materially adverse to the interest of the estate,
creditors and equity security holders of RJT.
Mr. LaMonica holds office at:
Salvatore LaMonica, Esq.
LaMonica Herbst & Maniscalco, LLP
3305 Jerusalem Avenue
Wantagh, NY 11793
Tel: 516.826.6500 x208
Email: sl@lhmlawfirm.com
About RJT Food & Restaurant
RJT Food & Restaurant, LLC filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No.
23-70447) on Feb. 8, 2023, with $1 million to $10 million in assets
and up to $50,000 in liabilities. RJT President Richard J. Bivona
signed the petition.
Judge Robert E. Grossman oversees the case.
Ronald D. Weiss, Esq., at Ronald D. Weiss, P.C. represents the
Debtor as legal counsel.
ROCKLEY PHOTONICS: Completes Restructuring, Exits Chapter 11
------------------------------------------------------------
Rockley Photonics on June 5, 2023, disclosed that it has completed
a comprehensive financial restructuring and emerged from Chapter 11
after filing for bankruptcy protection in Q1.
All of Rockley's material customer relationships remain in place.
The company remains on schedule with all programs including its
development of remote patient monitoring technology.
Rockley continues to see promising results relating to a number of
biomarkers, including glucose, and anticipates releasing those
results in the second half of this year. The company emerged with a
strengthened capital structure having received approximately $35
million of additional funding from its stakeholders.
Dr. Andrew Rickman, chief executive officer, said: "Rockley's
ability to emerge from Chapter 11 in just 46 days was a significant
achievement and marks the beginning of a new era for the company.
Our stakeholders ongoing belief in Rockley has provided us with a
greatly strengthened balance sheet and the funds to continue to
develop disruptive technology for the med tech market.
"We greatly appreciate the continued support not only of our
stakeholders but also of our suppliers, partners and employees. I
look forward to the opportunity to continue to develop Rockley's
products and bring them to market."
Dr. Richard Kuntz, former senior vice president and chief medical
and scientific officer at Medtronic, said: "Rockley has developed
breakthrough technology for non-invasive biomarker monitoring based
on their unique photonics chip platform. Rockley's progress towards
wearable devices could have a profound impact on early diagnosis
and disease management."
Dr. Tess Skyrme, Technology Analyst at research firm IDTechEx,
said: "Medical conditions such as diabetes and hypertension are
affecting a growing proportion of the global adult population. The
market for wrist-worn remote monitoring technology, which helps
people manage these conditions, is a sub-set of the growing
wearable technology market -- forecast to surpass $161 billion by
2033. Within this field, cuff-less blood pressure monitoring
emerges as a particularly promising growth engine."
About Rockley Photonics
Rockley Photonics Holdings Limited specializes in the research and
development of integrated silicon photonics chipsets. The Company
has developed a ground-breaking versatile, application specific,
third generation silicon photonics platform specifically designed
for the optical integration challenges facing numerous mega-trend
markets. The Company has partnered with multiple tier-1 customers
across markets to deliver complex optical systems required for
transformational sensors, communications, and medical product
realization.
Rockley Photonics filed a Chapter 11 bankruptcy petition (Bankr.
S.D.N.Y Case No. 23 10081) on Jan. 23, 2023. In the petition signed
by Richard A. Meier, chief executive officer, the Debtor disclosed
$90,880,000 in assets and $120,733,000 in liabilities.
The Debtor tapped PILLSBURY WINTHROP SHAW PITTMAN LLP as bankruptcy
counsel; JEFFERIES LLC as investment banker; and ALVAREZ & MARSAL,
LLC as financial advisor. WALKERS LAW FIRM is the Cayman Islands
counsel. KROLL, LLC, is the claims agent.
ROLPA TRUCKING: Case Summary & 13 Unsecured Creditors
-----------------------------------------------------
Debtor: Rolpa Trucking LLC
12761 Union Church Dr
Grand Bay, AL 36541
Business Description: The Debtor is part of the general freight
trucking industry.
Chapter 11 Petition Date: June 5, 2023
Court: United States Bankruptcy Court
Southern District of Alabama
Case No.: 23-11268
Judge: Hon. Henry A. Callaway
Debtor's Counsel: Kevin M. Ryan, Esq.
RYAN LEGAL SERVICES, INC.
209 N. Joachim Street
Mobile, AL 36603
Tel: (251) 431-6012
Fax: (877) 499-5130
Email: ryanlegalservices@gmail.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Roland J. Collins as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 13 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/JSFHVWA/Rolpa_Trucking_LLC__alsbke-23-11268__0001.0.pdf?mcid=tGE4TAMA
SAMSONITE IP: S&P Rates Credit Facility and Term Loans A/B 'BB+'
----------------------------------------------------------------
S&P Global Ratings assigned its 'BB+' issue-level ratings and '2'
recovery ratings to Samsonite's proposed new $850 million revolving
credit facility, $800 million term loan A, and $600 million term
loan B. The '2' recovery rating indicates its expectation of
substantial (70%-90%; rounded estimate 85%) recovery. The company
plans to use the proceeds to refinance its existing debt.
The pro forma capital structure will consist of a:
-- New $850 million revolving credit facility due 2028.
-- New $800 million first-lien term loan A due 2028.
-- New $600 million first-lien term loan B due 2030.
-- Existing $379 million senior unsecured notes due 2026.
S&P said, "The rating on the senior unsecured notes remains 'BB-'
with a recovery rating of '4'. Our recovery estimate increased to
40% from 35%.
"We consider the transaction to be roughly neutral for leverage and
our issuer credit rating on Samsonite remains 'BB'. The stable
outlook reflects our expectation that Samsonite will maintain S&P
Global Ratings-adjusted EBITDA margin near current levels while
expanding revenue, which will decrease S&P Global Ratings
lease-adjusted leverage below 3x in 2023 and 2024 from 3x in
2022."
ISSUE RATINGS – RECOVERY ANALYSIS
Key analytical factors:
-- Samsonite is a Luxembourg corporation. The company has assets
in North America, Asia, Europe, and Latin America. S&P believes it
would file for bankruptcy protection in the U.S. under the
administration of the U.S. bankruptcy court system while its
entities abroad remain out of any insolvency proceedings with
respect to their local jurisdictions.
-- The borrowers of the revolving credit facility will be
Samsonite International S.A., Samsonite Europe N.V., Samsonite IP
Holdings S.a.r.l., Samsonite Brands Private Limited, Samsonite LLC,
Samsonite Co. Stores LLC, and Tumi Inc. The borrowers of the
amended term loan A and term loan B are Samsonite IP Holdings and
Tumi. If the foreign entity were a subsidiary of the borrower or
guarantor, there would be a stock pledge. Guarantors include all
wholly owned domestic restricted direct and indirect subsidiaries.
-- The first-lien facilities are secured by a first-priority lien
on most of the borrower and guarantors' tangible and intangible
assets, including 100% of the capital stock of the borrower and any
subsidiary of the borrower or guarantors subject to customary
exceptions (but limited to 66% of the voting equity interests of a
tax-excluded subsidiary or foreign subsidiary).
-- The issuer of the unsecured notes is Samsonite Finco S.a r.l.,
a financing subsidiary of Samsonite International S.A. The entity
has no operations, and the debt is serviced by the cash flows from
the company's European operations. The notes are senior unsecured
obligations subordinated to the company's senior secured credit
facilities and future senior secured facilities. The notes'
guarantors include all of Samsonite's wholly owned domestic
restricted direct and indirect subsidiaries, though they are
subordinated to the company's senior secured credit facilities.
-- S&P's simulated default assumes a payment default in 2028 after
the company loses revenue and cash flow due to a prolonged decline
in global economic conditions that substantially reduce
discretionary spending and travel. Subsequently, the company funds
its cash flow shortfalls with available cash and revolver
borrowings. Eventually, its liquidity and capital resources are
strained to the point where it cannot continue to operate without
an equity infusion or bankruptcy filing.
-- S&P said, "We assume Samsonite emerges from bankruptcy. We
value the company on a going-concern basis by applying a 6x
multiple to our projected emergence-level EBITDA. The 6x multiple
is higher than the 5x multiple we typically apply to rated consumer
durables or retailer issuers. This reflects Samsonite's strong
global brand recognition, which we believe commands a higher
valuation."
Simulated default assumptions:
-- Year of default: 2028
-- EBITDA at emergence: $331 million
-- Implied enterprise value (EV) multiple: 6.0x
-- Estimated gross EV at emergence: $2.0 billion
Simplified waterfall:
-- Net EV (after 5% administrative costs): $1.9 billion
-- Valuation split (obligor/nonobligor): 50%/50%
-- Collateral value available to secured first-lien debt: $1.6
billion
-- Estimated senior secured first-lien claims: $2.0 billion
--Recovery expectations for senior secured debt: 70%-90%
(rounded estimate: 85%)
-- Collateral value available to senior unsecured debt: $330
million
-- Estimated senior unsecured claims: $815 million
--Recovery expectations for senior unsecured debt: 30%-50%
(rounded estimate: 40%)
All debt amounts include six months of prepetition interest.
SANUWAVE HEALTH: Board Appoints Morgan Frank as CEO
---------------------------------------------------
SANUWAVE Health, Inc. announced that its Board of Directors has
appointed Morgan Frank as chief executive officer.
Frank, a company development, corporate restarts, and capital
markets veteran, has served 19 years as founder and principal of
Manchester Management (Manchester Explorer Fund), the Company's
largest outside shareholder and has served as Chairman of the
SANUWAVE Board of Directors since August 2022. Kevin Richardson,
the Company's former CEO, will remain on the Board of Directors of
the Company and continue an active role in the Company, serving as
its chief strategic officer during this exciting period of growth
and opportunity for the Company.
"Having now been SANUWAVE's Chairman for nearly a year, I believe
strongly in the Company and its mission to bring efficacious and
cost-effective technology to the wound care market," said Frank.
"This is a very exciting time in our lifecycle as we seek to
rapidly expand our manufacturing and explore and expand our
commercial and strategic options. I would like to thank Kevin for
his role in assembling this impressive product suite and setting
the stage for future success."
Before joining the Company, Frank, 51, has served 19 years as
principal at Manchester Management LLC, the Company's largest
outside shareholder. He brings with him 29 years of U.S. public
equity and capital markets experience, with a focus in life
sciences and technology as well as corporate restarts and
intellectual property salvage and monetization. Mr. Frank has
provided long term strategic planning, due diligence and business
development strategy, and investor relations guidance to over 100
public companies and looks forward to working more deeply with
SANUWAVE.
About SANUWAVE Health
Headquartered in Suwanee, Georgia, SANUWAVE Health, Inc.
(OTCQB:SNWV) -- http://www.SANUWAVE.com-- is a shock wave
technology company using a patented system of noninvasive,
high-energy, acoustic shock waves for regenerative medicine and
other applications. The Company's initial focus is regenerative
medicine utilizing noninvasive, acoustic shock waves to produce a
biological response resulting in the body healing itself through
the repair and regeneration of tissue, musculoskeletal, and
vascular structures.
SANUWAVE reported a net loss of $10.29 million for the year ended
Dec. 31, 2022, compared to a net loss of $27.26 million for the
year ended Dec. 31, 2021. As of Dec. 31, 2022, the Company had
$19.87 million in total assets, $60.88 million in total
liabilities, and a total stockholders' deficit of $41.01 million.
New York, NY-based Marcum LLP, the Company's auditor since 2018,
issued a "going concern" qualification in its report dated March
31, 2023, citing that the Company has incurred recurring losses and
needs to raise additional funds to meet its obligations and sustain
its operations and the occurrence of the events of default on the
Company's debt. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
SCCW INDUSTRIAL: Case Summary & Four Unsecured Creditors
--------------------------------------------------------
Debtor: SCCW Industrial Services, LLC
dba West, Ltd.
4805 Tolivar Canal Rd.
Beaumont TX 77713
Business Description: SCCW has interests in three properties
located in Beaumont, Texas. The current
value of the Debtor's interest is $763,551
in total.
Chapter 11 Petition Date: June 5, 2023
Court: United States Bankruptcy Court
Eastern District of Texas
Case No.: 23-10209
Debtor's Counsel: Frank J. Maida, Esq.
MAIDA CLARK LAW FIRM, P.C.
4320 Calder Ave
Beaumont, TX 77706
Tel: (409) 898-8200
Fax: (409) 898-8400
Email: docs@maidaclarklaw.com
Total Assets: $768,751
Total Liabilities: $2,226,840
The petition was signed by Clint T. West as president.
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/HEV4ILQ/SCCW_Industrial_Services_LLC__txebke-23-10209__0001.0.pdf?mcid=tGE4TAMA
SEAICH CARD: Available Cash & Sale Proceeds to Fund Plan
--------------------------------------------------------
Seaich Card & Souvenir Corporation filed with the U.S. Bankruptcy
Court for the District of Utah a Subchapter V Plan dated June 1,
2023.
The Debtor was formed in 1929, by Lowell Seaich. From its formation
until the early 2000s, the Debtor primarily was a souvenir company,
sourcing and supplying miscellaneous products to gift shops and
similar small businesses around the country.
The Debtor made several efforts to obtain new funding. Ultimately,
Manufactured Networks, Inc. was the only funding source that the
Debtor found willing and able to meet the Debtor's funding needs.
Manufactured is the only asset buyer that engaged in serious
discussions with the Buyer, and the only potential buyer that has
expressed any interest in buying the debtor's inventory or other
assets at a valuation in excess of bare liquidation value.
On April 11, 2023, the Debtor filed a motion requested court
approval to sell all of the Debtor's inventory and related assets
to Manufactured. Objections were filed or threatened by the SBA,
Drip Capital and the UST. The objections were resolved in three
separate stipulations, to wit: the Debtor's stipulation with the
SBA (the "SBA Stipulation"); the Debtor's stipulation with Drip
Capital (the "Drip Capital Stipulation"); and the Debtor's
stipulation with the UST (the "UST Stipulation") (collectively, the
"Manufactured Sale Stipulations").
On May 3, 2023, the Court entered the Manufactured Sale Order
approving the sale of the Manufactured Purchased Assets to
Manufactured for a minimum purchase price of $524,000 and maximum
purchase price of $3,500,000. The Manufactured Sale Order also
approved the three Manufactured Sale Stipulations.
Pursuant to the Manufactured Sale Order and the court-approved UST
Stipulation, the proceeds of the Manufactured Purchased Assets and
the Walmart Receivable will be collected and distributed by the
Subchapter V Trustee. The Manufactured Sale Proceeds will be
received and distributed to creditors as one source of payment to
creditors under this Plan. The Walmart Receivable will be collected
by the Trustee and distributed to creditors as a second source of
payment to creditors. This Plan contemplates that Disposable Income
(i.e., 25% of future New Net Profits) will be distributed to
creditors as a third, addition source of repayment to creditors.
Class 2 consists of General Unsecured Claims. The holders of
Allowed Class 2 Claims shall be paid the lesser of (a) the full
amount of their claim as of the Petition Date, plus interest from
and after the Effective Date at the Applicable Rate, or (b) a pro
rata share of the Total Distributions available after payment of
Allowed Claims having greater priority in distribution. Class 2 is
impaired under the Plan.
Subject to the limitations and priorities, the holders of Allowed
Class 2 Claims shall be paid, pro rata, (a) from time to time, but
in any event at least on the Initial Distribution Date and the
subsequent Interim Distribution Dates, to the extent that a full or
partial distribution of Cash is available on such dates, and (b) on
the Final Distribution Date. The funds in the Distribution Account
will be paid, first, to the holders of Allowed Claims having
greater priority in distribution. Specifically, the holders of
Allowed Class 2 Claims will not receive distributions until the
holders of claims with higher priority have been paid or reserved
in full.
Class 7 consists of Equity Interests in the Debtor. Each record
holder of an Equity Interest in the Debtor shall retain its
interest in the Debtor. Subject to the limitations and priorities,
the holders of Allowed Class 7 Interests shall receive pro rata
distributions, (a) from time to time, but in any event at least on
the Initial Distribution Date and the subsequent Interim
Distribution Dates, to the extent that a full or partial
distribution of Cash is available to the holder of such interest on
such dates, and (b) on the Final Distribution Date.
The following cash and proceeds shall be delivered to, or collected
by, the Distribution Agent and deposited into the Distribution
Account: (a) all Cash of the Debtor as of the Confirmation Date;
(b) the Manufactured Sale Proceeds; (c) the proceeds of the Walmart
Receivable; (d) proceeds from the sale of any other property of the
Debtor; (e) Disposable Income received by the Distribution Agent
from the Reorganized Debtor; and (f) payments received on account
of Avoidance Actions or other litigation recoveries.
A full-text copy of the Subchapter V Plan dated June 1, 2023 is
available at https://urlcurt.com/u?l=43dtft from PacerMonitor.com
at no charge.
Attorneys for Debtor:
Matthew M. Boley, Esq.
Jeffrey Trousdale, Esq.
COHNE KINGHORN, P.C.
111 E. Broadway, 11th Floor
Salt Lake City, UT 84111
Telephone: (801) 363-4300
E-mail: mboley@ck.law
jtrousdale@ck.law
About Seaich Card & Souvenir Corporation
Seaich Card & Souvenir Corporation -- https://seaich.com/ -- doing
business as Seaich Corporation, is a privately held company in the
wholesale trade business. Seaich Card & Souvenir Corporation filed
a petition for relief under Subchapter V of Chapter 11 of the
Bankruptcy Code (Bankr. D. Utah Case No. 22-23909) on Oct. 4, 2022.
In the petition filed by Uriah Kennedy, as president, the Debtor
reported assets between $10 million and $50 million and liabilities
between $1 million and $10 million.
D. Ray Strong has been appointed as Subchapter V trustee.
Judge R. Kimball Mosier oversees the case.
The Debtor tapped Cohne Kinghorn, led by is represented by Matthew
M. Boley, as counsel; and Rocky Mountain Advisory, LLC, as
financial advisor and accountant.
SNOWSHOE MILLWORKS: Case Summary & Seven Unsecured Creditors
------------------------------------------------------------
Debtor: Snowshoe Millworks LLC
61 Old South Road, Suite 333
Nantucket, MA 02554
Chapter 11 Petition Date: June 5, 2023
Court: United States Bankruptcy Court
District of Massachusetts
Case No.: 23-10887
Judge: Hon. Janet E. Bostwick
Debtor's Counsel: Adam Ruttenberg, Esq.
BEACON LAW GROUP
935 Great Plain Avenue No 116
Needham MA 02492
Tel: (617) 964-9833
Email: ARuttenberg@BeaconLawGroup.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Sheila Coffin Harshman as sole manager
and member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's seven unsecured creditors is available for
free at PacerMonitor.com at:
https://www.pacermonitor.com/view/2Q6445I/Snowshoe_Millworks_LLC__mabke-23-10887__0001.0.pdf?mcid=tGE4TAMA
SOLANO COUNTY BLACK: Lisa Holder Named Subchapter V Trustee
-----------------------------------------------------------
The U.S. Trustee for Region 17 appointed Lisa Holder as Subchapter
V trustee for Solano County Black Chamber of Commerce, Inc.
Ms. Holder will be paid an hourly fee of $300 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Holder declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Lisa Holder
3710 Earnhardt Drive
Bakersfield, CA 93306
Phone: (661) 205-2385
Email: lholder@lnhpc.com
About Solano County
Solano County Black Chamber of Commerce, Inc. filed Chapter 11
Petition (Bankr. E.D. Calif. Case No. 23-21667) on May 23, 2023,
with as much as $50,000 in both assets and liabilities. Judge
Ronald H. Sargis oversees the case.
The Debtor is represented by Le'Roy Roberson, Esq.
STRUCTURLAM TIMBER: $81-Mil. Sale to Mercer Approved
----------------------------------------------------
Carl Surran of Seeking Alpha reports that Mercer International
(NASDAQ:MERC) said it received bankruptcy court approval for the
acquisition of assets of Structurlam Mass Timber Corp., including
production facilities in Arkansas and British Columbia, for $81.1
million.
The Conway, Ark., plant has an annual capacity of ~75K cm and can
produce both glued laminated timber and cross-laminated timber;
three facilities in B.C. provide a combined annual capacity of ~40K
cm of glulam and CLT.
Mercer (MERC) said the total acquisition would materially increase
its cross-laminated timber capacity to 210K cm of CLT and add 45K
cm of glulam production capacity.
About Structurlam Mass Timber U.S., Inc.
Structurlam Mass Timber U.S., Inc. is a manufacturer of mass timber
solutions including cross laminated timber, Glulam beams,
industrial matting and more.
On April 21, 2023, SLP Holdings Ltd., Structurlam Mass Timber
Corporation (formerly SLP Operations Ltd.), Structurlam Mass Timber
U.S., Inc. and Natural Outcomes, LLC commenced proceedings by
filing voluntary petitions for relief pursuant to chapter 11 of the
Bankruptcy Code (Bankr. D. Del. Lead Case No. 23-10497). In
connection with the Chapter 11 Proceedings, the U.S. Bankruptcy
Court has appointed SLP as the foreign representative of
Structurlam.
On application made by the Foreign Representative, on April 27,
2023, the Supreme Court of British Columbia granted orders, among
other things, recognizing the Chapter 11 Proceedings as a foreign
proceeding under Part IV of the Companies' Creditors Arrangement
Act, staying all proceedings against Structurlam, and appointing
Alvarez & Marsal Canada Inc. as the Information Officer in the
Canadian recognition proceedings under the CCAA.
In the petition signed by Shawn Turkington, authorized signatory,
the Debtor disclosed up to $500 million in both assets and
liabilities.
Judge Craig T. Goldblatt oversees the U.S. cases.
The Debtors tapped M. Blake Cleary, Esq., at Potter Anderson and
Corroon LLO, as local bankruptcy counsel, Paul Hastings LLP as
general bankruptcy counsel, Gowling WLG as Canadian bankruptcy
counsel, Alvarez and Marsal Canada Inc. as financial advisor,
Stifel, Nicolaus and Co. Inc. and Miller Buckfire and Co. LLC as
investment banker, and Kurtzman Carson Consultants LLC as notice
and claims agent.
SYNTHESIS INDUSTRIAL: July 19 Plan & Disclosure Hearing Set
-----------------------------------------------------------
On May 22, 2023, Synthesis Industrial Holdings 1, LLC, filed with
the U.S. Bankruptcy Court for the District of Nevada an Ex Parte
Motion for Conditional Approval of Disclosure Statement for Chapter
11 Plan of Reorganization.
On June 1, 2023, Judge Mike K. Nakagawa conditionally approved the
Disclosure Statement and ordered that:
* On July 19, 2023, at 9:30 a.m. is fixed for the hearing on
final approval of the disclosure statement (if a written objection
has been timely filed) and for the hearing on confirmation of the
plan.
* July 3, 2023 is fixed as the last day for filing written
acceptances or rejections of the plan.
* July 3, 2023 is fixed as the last day for filing written
objections to the plan and to file all declarations and evidence in
support of said objection.
* July 12, 2023 is fixed as the last day for filing any
response to objections to the plan, to file points and authorities
in support of plan confirmation, and to file all declarations and
evidence in support of plan confirmation.
* All ballots for the acceptance or rejection of Debtor's Plan
of Reorganization must be received by Debtor's counsel on or before
July 3, 2023.
A copy of the order dated June 1, 2023 is available at
https://urlcurt.com/u?l=5nTVme from PacerMonitor.com at no charge.
Attorney for the Debtor:
Steven L. Yarmy, Esq.
7464 W Sahara Ave, STE 8
Las Vegas, NV 89117
Phone: (702) 586-3513
Fax: (702) 586-3690
Email: sly@stevenyarmylaw.com
About Synthesis Industrial Holdings 1
Synthesis Industrial Holdings 1, LLC is a Nevada LLC with two
members, which membership interest is held individually by
Christopher Craig and Cristina Robertson. The Debtor filed a
Chapter 11 bankruptcy petition (Bankr. D. Nev. Case No. 23-11321)
on April 4, 2023, disclosing under $1 million in both assets and
liabilities. Judge Mike K. Nakagawa oversees the case.
The Debtor is represented by Steven L. Yarmy, Esq.
TRIUMPH GROUP: Advances Board Refreshment
-----------------------------------------
Triumph Group, Inc. announced the following changes to its Board of
Directors as part of the Board's ongoing refreshment program:
* Patrick E. Allen has been nominated as an independent director
for election at the Company's 2023 Annual Meeting of Stockholders.
Mr. Allen will serve as a non-voting Board Observer until he is
elected to the TRIUMPH Board.
* In connection with a cooperation agreement with Vision One
Management Partners, LP, Courtney R. Mather, CEO and CIO of ision
One, has also been nominated as an independent director for
election at the Annual Meeting. Mr. Mather will serve as a
non-voting Board Observer until he is elected to the TRIUMPH Board.
* General Larry O. Spencer will retire from the TRIUMPH Board,
effective as of the Annual Meeting, following 5 years of service,
including significant contributions made as Chair of the Board's
Nominating, Governance and Sustainability committee.
* William "Bill" L. Mansfield will retire from the TRIUMPH
Board, effective as of the Annual Meeting, following 11 years of
service. Mr. Mansfield currently serves as Lead Independent
Director of the Board and previously served as Chair of Audit,
Nominating Governance, and Sustainability, and Compensation
committees.
* Neal Keating, an independent director since April 2022, will
serve as TRIUMPH's Lead Independent Director following the Annual
Meeting.
* Julio C. Acero, an Investment Analyst of Vision One, will
serve as a non-voting Board Observer until the Company's 2024
Annual Meeting of Stockholders.
Following the Annual Meeting, the TRIUMPH Board will continue to
comprise nine directors, eight of whom will be independent and four
of whom will have been appointed in the last 2 years.
"I want to express my gratitude to Bill and Larry for expertly
guiding TRIUMPH during a critical phase in the Company's 27-year
history and positioning the Company for long-term success. Their
assistance to me and the management team throughout our
transformation journey has been greatly appreciated," said Daniel
J. Crowley, the Company's Chairman, president, chief executive
officer. "TRIUMPH ended fiscal 2023 with strong momentum, and I
look forward to working alongside Patrick, Courtney, Julio and the
rest of the Board as TRIUMPH executes on our operational and
financial goals and captures the significant opportunities ahead."
"The TRIUMPH Board is committed to best-in-class corporate
governance and ongoing director refreshment to support the
Company's goals," said Cynthia M. Egnotovich, Chair of the
Nominating, Governance and Sustainability Committee. "Aided by a
search firm, the Board identified Patrick among a strong pipeline
of independent candidates as a part of our normal refreshment
process. Patrick, Courtney and Julio bring financial expertise and
fresh perspectives to the boardroom and we welcome them as we
continue to oversee TRIUMPH's continued growth and value
creation."
"We invested in TRIUMPH given its leadership position in a dynamic
and critical market. We appreciate the productive engagement we
have had with the Board and are encouraged by the Company's ongoing
commitment to refreshment. Julio and I look forward to working
with Dan and the Board to drive continued value for stockholders,"
said Courtney R. Mather, chief executive officer and chief
investment officer of Vision One.
About Patrick E. Allen
Mr. Allen has over 30 years of financial experience, with extensive
expertise in capital markets, accounting and SEC financial
reporting, and mergers and acquisitions. He previously served as
the Chief Financial Officer for Collins Aerospace, a division of
Raytheon Technologies, where he oversaw the $26 billion dollar
division and led a worldwide finance team of over 3,000
professionals. Prior to this, he held numerous positions at
Rockwell Collins, including chief financial officer. Mr. Allen
currently serves as a director of Alliant Energy Corporation and
Austal USA. He received his B.S. in Finance from The Pennsylvania
State University.
About Courtney R. Mather
Mr. Mather is the chief executive officer and chief investment
officer of Vision One. Mr. Mather formerly served as a portfolio
manager and managing director of Icahn Capital. Prior to joining
Icahn Capital, he was at Goldman Sachs & Co., most recently as
Managing Director, where he focused on identifying and analyzing
investment opportunities for both Goldman Sachs and clients. Mr.
Mather currently serves as an independent director on the boards of
Caesars Entertainment, Inc. and Newell Brands Inc. Mr. Mather
previously served on the boards of Cheniere Energy, Inc., Conduent
Incorporated, Freeport-McMoRan Inc., and Herc Holdings Inc. He
holds the Chartered Alternative Investment Analyst, Chartered
Financial Analyst and Certified Financial Risk Manager professional
designations. He received a B.A. from Rutgers College.
About Julio C. Acero
Mr. Acero is an Investment Analyst at Vision One. Mr. Acero
formerly served as a Research Associate for Artisan Partners'
Global Equity Fund covering the Industrials sector. Mr. Acero
previously served as an Investment Analyst at Steel Partners
Holdings and began his career as an Investment Banking Analyst at
Houlihan Lokey. Mr. Acero received an M.B.A. from the Kellogg
School of Management at Northwestern University, a Master of
Accounting from the University of Southern California, and a B.S.
from Cal Poly Pomona.
About Triumph
Headquartered in Berwyn, Pennsylvania, Triumph Group, Inc. --
http://www.triumphgroup.com-- designs, engineers, manufactures,
repairs and overhauls a broad portfolio of aerospace and defense
systems, components and structures. The company serves the global
aviation industry, including original equipment manufacturers and
the full spectrum of military and commercial aircraft operators.
Triumph Group reported a net loss of $42.76 million for the year
ended March 31, 2022, compared to a net loss of $450.91 million for
the year ended March 31, 2021. As of Dec. 31, 2022, the Company had
$1.59 billion in total assets, $370.11 million in total current
liabilities, $1.60 billion in long-term debt (less current
portion), $259.67 million in accrued pension and other
postretirement benefits, $7.44 million in deferred income taxes,
$43.05 million in other noncurrent liabilities, and total
stockholders' deficit of $688.06 million.
* * *
As reported by the TCR on Aug. 18, 2021, Moody's Investors Service
upgraded its ratings for Triumph Group, Inc., including the
company's corporate family rating to Caa2 from Caa3 and Probability
of Default Rating to Caa2-PD from Caa3-PD. The upgrades reflect
Moody's expectations for stronger operating performance that will
result in a gradual improvement in credit metrics through 2023.
In March 2023, S&P Global Ratings affirmed its 'CCC+' issuer credit
rating on Triumph Group Inc. and revised the outlook to stable from
negative. S&P said, "The stable outlook reflects our expectation
that the company's credit metrics will continue to improve
throughout the 2024 fiscal year, driven primarily by growth within
the systems and service segment. We believe financial leverage
will remain above 8x until the back end of fiscal-year 2024 or
early 2025."
TRIUMPH GROUP: Swings to $89.6M Net Income in FY Ended March 31
---------------------------------------------------------------
Triumph Group, Inc. filed with the Securities and Exchange
Commission its Annual Report on Form 10-K disclosing net income of
$89.59 million on $1.38 billion of net sales for the year ended
March 31, 2023, compared to a net loss of $42.76 million on $1.46
billion of net sales for the year ended March 31, 2022.
As of March 31, 2023, the Company had $1.71 billion in total
assets, $396.92 million in total current liabilities, $1.68 billion
in long-term debt (less current portion), $359.37 million in
accrued pension and other postretirement benefits, $7.27 million in
deferred income taxes, $60.05 million in other noncurrent
liabilities, and a total stockholders' deficit of $797.39 million.
Triumph said, "We currently expect fiscal 2024 operations to result
in net cash inflows, however, due to cyclicality we anticipate
using cash over the first half of fiscal 2024 and generating in the
second half. We believe, based on an assessment of our current
cash holdings as presented on the accompanying consolidated balance
sheet as of March 31, 2023, as well as current market conditions,
that cash flows from operations and borrowings under the
Securitization Facility will be sufficient to meet anticipated cash
requirements for our current operations for at least the next 12
months. We also believe, based on our current cash, our fiscal
2024 operating cash flow expectations, and the expected expansion
of cash flows from operations subsequent to fiscal 2024, that we
have the ability to generate and obtain adequate amounts of cash to
meet anticipated cash requirements for the foreseeable future. We
continually evaluate opportunities to access the credit and capital
markets. We may also seek transactions to extend the maturity of
our indebtedness, reduce leverage, or decrease interest expense.
Such transactions could include one or more repurchases or
exchanges of our outstanding indebtedness. These transactions
could increase our total amount of secured indebtedness or be
dilutive to stockholders. There can be no assurances if or when we
will consummate any such transactions or the timing thereof."
A full-text copy of the Form 10-K is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/0001021162/000095017023023686/tgi-20230331.htm
About Triumph
Headquartered in Berwyn, Pennsylvania, Triumph Group, Inc. --
http://www.triumphgroup.com-- designs, engineers, manufactures,
repairs and overhauls a broad portfolio of aerospace and defense
systems, components and structures. The company serves the global
aviation industry, including original equipment manufacturers and
the full spectrum of military and commercial aircraft operators.
Triumph Group reported a net loss of $42.76 million for the year
ended March 31, 2022, compared to a net loss of $450.91 million for
the year ended March 31, 2021. As of Dec. 31, 2022, the Company
had $1.59 billion in total assets, $370.11 million in total current
liabilities, $1.60 billion in long-term debt (less current
portion), $259.67 million in accrued pension and other
postretirement benefits, $7.44 million in deferred income taxes,
$43.05 million in other noncurrent liabilities, and total
stockholders' deficit of $688.06 million.
* * *
This concludes the Troubled Company Reporter's coverage of Triumph
Group until facts and circumstances, if any, emerge that
demonstrate financial or operational strain or difficulty at a
level sufficient to warrant renewed coverage.
USUGA MANAGEMENT: Voluntary Chapter 11 Case Summary
---------------------------------------------------
Debtor: Usuga Management LLC
3426 Augusta
Rockwall TX 75087
Business Description: The Debtor is a Single Asset Real Estate
as defined in 11 U.S.C. Section 101(51B).
Chapter 11 Petition Date: June 5, 2023
Court: United States Bankruptcy Court
Northern District of Texas
Case No.: 23-31165
Judge: Hon. Stacey G. Jernigan
Debtor's Counsel: Joyce W. Lindauer, Esq.
JOYCE W. LINDAUER ATTORNEY, PLLC
1412 Main Street, Suite 50
Dallas TX 75202
Tel: (972) 503-4033
Email: joyce@joycelindauer.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $100,000 to $500,000
The petition was signed by Maria Usuga as manager.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/FM3JNOY/Usuga_Management_LLC__txnbke-23-31165__0001.0.pdf?mcid=tGE4TAMA
VALLEY PROPERTY: Taps Coldwell Banker Realty as Broker
------------------------------------------------------
Valley Property Ventures, LLC seeks approval from the U.S.
Bankruptcy Court for the Central District of California to employ
Coldwell Banker Realty to market and sell its properties located at
67061 Diamond Road, Cathedral City, Calif.
The firm will be paid an 8 percent commission for each of the
properties from the sale proceeds.
Jose Soto, a member of Coldwell Banker Realty, disclosed in a court
filing that his firm is a "disinterested person" pursuant to
Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Jose Soto
Coldwell Banker Realty
Palm Desert, 72605 Hwy 111 Suite B-1
Palm Desert, CA 92260
Tel: (760) 799-7600
Fax: (760) 776-1666
Email: j8084@hotmail.com
About Valley Property Ventures
Valley Property Ventures, LLC is a company in Palm Springs, Calif.,
engaged in activities related to real estate.
Valley Property Ventures filed a petition for relief under Chapter
11 of the Bankruptcy Code (Bankr. C.D. Calif. Case No. 23-10981) on
March 15, 2023. In the petition filed by its manager, Erik Ivan
Ochoa Gonzalez, the Debtor reported $1 million to $10 million in
both assets and liabilities.
Judge Scott H. Yun oversees the case.
Golden Goodrich, LLP is the Debtor's bankruptcy counsel.
VELOCIOUS DELIVERY: Amends Plan to Include Disputed Claims Pay
--------------------------------------------------------------
Velocious Delivery LLC submitted a First Amended Plan of
Reorganization dated June 1, 2023.
Debtor's First Amended Plan of Reorganization provides for the
continued operations of the Debtor in order to make payments to its
creditors as set forth in this Plan. Debtor seeks to confirm a
consensual plan or reorganization so that all payments to creditors
required under the Plan will be made directly by the Debtor to its
creditors.
The Debtor filed this case on December 9, 2022, to seek protection
from aggressive collection efforts by creditors and reorganize for
the benefit of all its creditors. Debtor proposes to pay allowed
secured and unsecured based on the liquidation analysis and cash
available. Debtor anticipates having enough existing business
combined with the continued addition of new customers and cash
available to fund the plan and pay the creditors pursuant to the
proposed plan.
The Debtor will continue operating its business. The Debtor's Plan
will break the existing claims into five classes of Claimants.
These claimants will receive cash repayments over a period of five
years beginning on the Effective Date.
Class 4 consists of Disputed Claims that are allegedly secured by
property of the Debtor's bankruptcy estate (or that are subject to
set-off) to the extent allowed as secured claims. The following
class contains Debtor's disputed secured pre-petition claim and the
proposed treatment under the Plan:
* 4-1 FinTap has not filed a proof of claim pertaining to the
alleged purchase of receivables and assigned accounts. This claim
is disputed. The disputed claim amount listed in Debtor's schedules
is $63,960.00. If a claim is filed after a new bar date is set by
the Court than this claim shall be paid and treated as an under
secured claim in Class 6.
* 4-3 Rapid Finance has not filed a proof of claim pertaining
to the alleged purchase of receivables and assigned accounts. This
claim is disputed. The disputed claim amount listed in Debtor's
schedules is $60,758.00. If a claim is filed after a new bar date
is set by the Court than this claim shall be paid and treated as an
under secured claim in Class 6.
Class 5 consists of Disputed Unsecured Claims. These claims are
unsecured disputed claims that did not file a claim. In the event a
claim is filed after the Court sets a new bar date any amount, if
not objected to, shall receive treatment in Class 6 of the Plan:
* 4-2 Kabbage (5 Potential Claims) has not filed a proof of
claim for any of its claims listed in Debtor's schedules. These
claims are disputed. These disputed claim amounts listed in
Debtor's schedules are listed at $0.00. If claims are filed after a
new bar date is set by the Court than these claims shall be paid
and treated as unsecured claims in Class 6.
* 4-4 Revenued has not filed a proof of claim pertaining to
its alleged claim. This claim is disputed. The disputed claim
amount listed in Debtor's schedules is $10,000.00. If a claim is
filed after a new bar date is set by the Court than this claim
shall be paid and treated as an unsecured claim in Class 6.
* 4-5 Square Financial Services, Inc. has not filed a proof of
claim pertaining to its alleged claim. This claim is disputed. The
disputed claim amount listed in Debtor's schedules is $18,819.46.
If a claim is filed after a new bar date is set by the Court than
this claim shall be paid and treated as an undersecured claim in
Class 6.
Like in the prior iteration of the Plan, General Allowed Unsecured
Claimants in Class 6 will receive 100% of their allowed claims
under this plan over the next 5 years.
Debtor anticipates the continued operations of the business to fund
the Plan.
A full-text copy of the First Amended Plan dated June 1, 2023 is
available at https://urlcurt.com/u?l=VXDcUL from PacerMonitor.com
at no charge.
Attorney for the Debtor:
Samuel L. Milledge, Sr.
The Milledge Law Firm, PLLC
2500 East T.C. Jester Blvd. Suite 510
Houston, TX 77092
Telephone: (713) 812-1409
Facsimile: (713) 812-1418
Email: milledge@milledgelawfirm.com
About Velocious Delivery
Velocious Delivery LLC is a delivery service specializing in the
delivery of pharmaceuticals.
Velocious Delivery sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Texas Case No. 22-33690) on Dec. 9,
2022. In the petition signed by Brandon Toledo, president, the
Debtor disclosed up to $100,000 in assets and up to $500,000 in
liabilities.
Judge Jeffrey P. Norman oversees the case.
Samuel L. Milledge, Sr. Esq., at The Milledge Law Firm, PLLC,
represents the Debtor.
Jarrod B. Martin has been appointed as Subchapter V Trustee.
VIDEO DISPLAY: Incurs $2 Million Net Loss in FY Ended Feb. 28
-------------------------------------------------------------
Video Display Corporation filed with the Securities and Exchange
Commission its Annual Report on Form 10-K disclosing a net loss of
$2 million on $8.10 million of net sales for the year ended Feb.
28, 2023, compared to a net loss of $2.56 million on $7 million of
net sales for the year ended Feb. 28, 2022.
As of Feb. 28, 2023, the Company had $5.36 million in total assets,
$5.64 million in total liabilities, and a total shareholders'
deficit of $279,000.
Peachtree Corners, Georgia-based Hancock Askew & Co., LLP, the
Company's auditor since 2017, issued a "going concern"
qualification in its report dated May 30, 2023, citing that the
Company has historically reported net losses or breakeven results
along with reporting low levels of working capital. These
conditions raise substantial doubt about the Company's ability to
continue as a going concern.
A full-text copy of the Form 10-K is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/758743/000119312523156706/d357819d10k.htm
About Video Display
Headquartered in Cocoa, Florida, Video Display Corporation
manufactures and distributes a wide range of display devices,
encompassing, among others, industrial, military, medical, and
simulation display solutions.
VINTAGE WEST: Seeks Cash Collateral Access
------------------------------------------
Vintage West, LLC asks the U.S. Bankruptcy Court for the Northern
District of Alabama, Northern Division, for authority to use the
cash collateral of idea Financial and IOU Financial.
The Debtor requires the use of cash collateral to continue its
operations.
The Debtor's only source of cash is operating revenue, which serves
as cash collateral.
The Debtor says assets securing its loan with idea Financial is
valued at $16,411 while assets securing its loan with IOU Financial
is valued at $95,503.
The Debtor plans to continue operating and managing its business as
a debtor-in-possession under 11 U.S.C. sections 1107(a) and 1108.
Through the filing of the Chapter 11 petition, the Debtor seeks to
accomplish a successful reorganization of its business.
A copy of the motion is available at https://urlcurt.com/u?l=AaXgtz
from PacerMonitor.com.
About Vintage West
Vintage West, LLC offers Chalk Paint Decorative Paint by Annie
Sloan. It is also a purveyor of several other highly sought after
home goods and name brands including Magnolia Home by a Joanna
Gaines, Norwalk furniture, Sam Moore, Four Seasons, and Hooker
Furniture.
Vintage West filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. N.D. Ala. Case No. 23-80809) on May 3,
2023, with $1 million to $10 million in both assets and
liabilities. Kevin Heard, Esq., has been appointed as Subchapter V
trustee.
Judge Clifton R. Jessup, Jr. oversees the case.
Richard L. Collins, Esq., at Collins Law Offices, P.C. is the
Debtor's legal counsel.
VYERA PHARMACEUTICALS: Seeks Court Approval to Hire CRO
-------------------------------------------------------
Vyera Pharmaceuticals, LLC and its affiliates seek approval from
the U.S. Bankruptcy Court for the District of Delaware to employ
Lawrence R. Perkins of SierraConstellation Partners, LLC as chief
restructuring officer.
The firm will provide these services:
a. provide additional personnel to render assistance to the CRO
and Deputy CRO, the Debtors and the Board from time to time;
b. assist the Debtors' other advisors through any anticipated
asset sale process;
c. provide testimony and serve as responsible party for
reporting requirements in the subchapter V case;
d. provide support to the Debtors' management team in respect to
the operations and cash flow processes leading up to and during the
subchapter V case;
e. provide oversight and assistance with the preparation of
financial information for distribution to creditors and others,
including, but not limited to, cash flow projections and budgets,
cash receipts and disbursements analysis of various asset and
liability accounts, and analysis of proposed transactions;
f. assist in communications with any unsecured creditor
committee, if one is formed in the subchapter V case, and assist in
the preparation of management reports;
g. assist in the preparation of and solicitation of support for
the confirmation of a plan of reorganization in the subchapter V
case;
h. evaluate and make recommendations in connection with
strategic alternatives as needed to maximize the value of the
Debtors' assets;
i. evaluate the cash flow generation capabilities of the Debtors
for value maximization opportunities;
j. provide oversight and assistance in connection with
communications and negotiations with constituents including trade
vendors, investors, and other critical constituents to the
successful execution of the Debtors near-term business plan; and
k. perform such other services as requested or directed by the
Debtors.
The firm will be paid at these rates:
Lawrence Perkins $1,000 per hour
Jordan Meyers $750 per hour
Partners $750 to $1,200 per hour
Managing Directors $660 to $750 per hour
Senior Directors $600 to $660 per hour
Directors $455 to $515 per hour
Senior Associates $360 per hour
Associates $285 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Prior to the Petition Date, the Debtors provided Sierra with
retainers in the aggregate amount of $698,841.89.
Lawrence Perkins, chief executive officer of SierraConstellation,
disclosed in a court filing that his firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Lawrence Perkins
SierraConstellation Partners, LLC
355 S Grand Ave. # 1450
Los Angeles, CA 90071
Tel: (213) 289-9060
Fax: 213 402 3548
Email: info@sierraconstellation.com
About Vyera Pharmaceuticals
Vyera Pharmaceuticals, LLC is a New York-based biopharmaceutical
company. It focuses on developing and commercializing innovative
treatments for patients with unmet medical needs.
Vyera and its affiliates filed petitions under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. D. Del. Lead Case No.
23-10605) on May 9, 2023. David Klauder has been appointed as
Subchapter V trustee.
In its petition, Vyera reported between $10 million and $50 million
in assets and between $1 million and $10 million in liabilities.
Judge J. Kate Stickles oversees the cases.
The Debtors tapped DLA Piper, LLP as bankruptcy counsel; Sierra
Constellation Partners, LLC as financial advisor; and Alvarez &
Marsal Securities, LLC as investment banker. Epiq Corporate
Restructuring, LLC is the claims and noticing agent.
VYERA PHARMACEUTICALS: Taps Alvarez & Marsal as Investment Banker
-----------------------------------------------------------------
Vyera Pharmaceuticals, LLC and its affiliates seek approval from
the U.S. Bankruptcy Court for the District of Delaware to employ
Alvarez & Marsal Securities, LLC.
The Debtors require an investment banker to:
a. assist with the formulation, valuation, implementation of
various options for a restructuring, financing, reorganization,
merger, or sale of the Debtors or their assets or businesses;
b. assist in updating, as appropriate, information memorandum
for distribution and presentation to prospective counterparties;
c. assist in identifying and contacting prospective
counterparties as well as in soliciting indications of interest in
a transaction;
d. assist in evaluating indications of interest and proposals
received from prospective parties in a potential transaction;
e. assist in negotiating the financial terms and structure of
any applicable transaction;
f. provide other financial advisory services and investment
banking services reasonably necessary to consummate one or more
transactions;
g. support the Debtors' efforts in connection with developing
and seeking approval for a restructuring plan, including, but not
limited to, a plan under Chapter 11 of the United States Code;
h. provide financial advisory services to the Debtors in
connection with the structuring of any new securities to be issued
under the plan;
i. assist the Debtors in negotiations with creditors,
shareholders, and other parties involved in their Chapter 11
cases;
j. participate in hearings before the court; and
k. provide other necessary services.
The firm will be paid at these rates:
-- A monthly fee of $75,000.
-- Concurrently with the close of any financing or sale
transaction, Alvarez & Marsal will be paid the following fees:
(i) 10 percent of (x) the aggregate debt or equity commitments
raised in a financing transaction only; or (y) the aggregate gross
consideration received in a sale transaction, in each case up to $5
million; plus
(ii) 2 percent of (x) the aggregate debt or equity commitments
raised in a financing transaction or (y) the aggregate gross
consideration received in a sale transaction, in each case above $5
million.
-- In case the Debtors consummate a restructuring transaction,
the firm will be paid a transaction fee of $500,000, provided that
any such restructuring transaction fee will be reduced by the
amount of any financing transaction fee or sale transaction fee
also paid to the firm.
Mark Belanger, managing director at Alvarez & Marsal, disclosed in
a court filing that his firm is a "disinterested person" pursuant
to Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Mark Belanger
Alvarez & Marsal Securities, LLC
600 Madison Avenue 8th Floor
New York, NY 10022
Tel: (212) 759-4433
Fax: (212) 759-5532
Email: mbelanger@alvarezandmarsal.com
About Vyera Pharmaceuticals
Vyera Pharmaceuticals, LLC is a New York-based biopharmaceutical
company. It focuses on developing and commercializing innovative
treatments for patients with unmet medical needs.
Vyera and its affiliates filed petitions under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. D. Del. Lead Case No.
23-10605) on May 9, 2023. David Klauder has been appointed as
Subchapter V trustee.
In its petition, Vyera reported between $10 million and $50 million
in assets and between $1 million and $10 million in liabilities.
Judge J. Kate Stickles oversees the cases.
The Debtors tapped DLA Piper, LLP as bankruptcy counsel; Sierra
Constellation Partners, LLC as financial advisor; and Alvarez &
Marsal Securities, LLC as investment banker. Epiq Corporate
Restructuring, LLC is the claims and noticing agent.
WESCO AIRCRAFT: Davis Polk Advises Noteholders in Incora Chapter 11
-------------------------------------------------------------------
Davis Polk & Wardwell LLP is advising an ad hoc group of first-lien
noteholders in connection with the chapter 11 restructuring of
Incora. On June 1, 2023, Incora and certain of its subsidiaries
initiated voluntary chapter 11 proceedings in the United States
Bankruptcy Court for the Southern District of Texas, Houston
Division. In connection with the chapter 11 filing, the ad hoc
group provided $300 million in superpriority debtor-in-possession
financing.
The DIP financing, which was approved on an interim basis by the
Bankruptcy Court at Incora’s “first-day” hearing held on June
1, 2023, will provide ongoing liquidity for Incora’s chapter 11
cases.
As of June 1, 2023, the ad hoc group held approximately 98% of
Incora’s $1.318 billion senior secured first-lien notes.
Incora is a leading provider of comprehensive supply chain
management services to the global aerospace industry and other
industries, including industrial manufacturing, marine and
pharmaceutical. Incora incorporates itself into customers’
businesses, managing all aspects of supply chain from procurement
and inventory management to logistics and on-site customer
services. Incora is headquartered in Fort Worth, Texas, with a
global footprint that includes 60 locations in 17 countries and
approximately 3,750 employees.
The Davis Polk restructuring team includes partners Damian S.
Schaible and Angela M. Libby, associates Stephanie Massman, Hailey
W. Klabo and Kate Somers. The finance team includes partner Kenneth
J. Steinberg, counsel David J. Kennedy and associate Jaynie Doe.
The litigation team includes partner Elliot Moskowitz and associate
Garrett Cardillo. All members of the Davis Polk team are located in
the New York office.
About Incora
Incora -- http://www.incora.com/-- is the trade name for the group
of companies formed by Wesco Aircraft and Pattonair, a leading
provider of comprehensive supply chain management services to the
global aerospace and other industries. Beginning with a strong
foundation in aerospace and defense, Incora also utilizes its
supply chain expertise to serve industrial manufacturing, marine,
pharmaceutical and beyond. Incora incorporates itself into
customers' businesses, managing all aspects of supply chain from
procurement and inventory management to logistics and on-site
customer services. The company is headquartered in Fort Worth,
Texas, with a global footprint that includes 68 locations in 17
countries and more than 3,800 employees.
Wesco Aircraft Holdings, Inc., doing business as Incora, and 43
affiliates sought CHapter 11 protection (Bankr. S.D. Tex. Lead Case
No. 23-90611) on June 1, 2023.
Wesco Aircraft estimated assets and debt of $1 billion to $10
billion as of the bankruptcy filing.
The Debtors tapped MILBANK LLP as general bankruptcy counsel;
HAYNES AND BOONE, LLP, as local bankruptcy counsel; PJT PARTNERS,
INC., as investment banker; and ALVAREZ & MARSAL NORTH AMERICA,
LLC, as financial advisor. QUINN EMANUEL URQUHART & SULLIVAN, LLP,
is the special litigation counsel. KURTZMAN CARSON CONSULTANTS LLC
is the claims agent.
WHITE RABBIT: Court OKs Cash Collateral Access Thru June 30
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Western District of Washington at
Vancouver authorized White Rabbit Ventures, Inc., dba Matrix
Roofing, and Home Solutions dba Matrix Roof+Home to use cash
collateral on a further interim basis in accordance with the
budget, through June 30, 2023.
The U.S. Small Business Administration is granted a replacement
lien in the Debtor's postpetition assets, to the same extent,
validity, and priority it had in the Debtor's prepetition assets,
excluding any security interests in avoidance actions pursuant to
11 U.S.C. sections 506(c), 544, 545, 547, 548, and 549, and without
prejudice to the ability of the Debtor or its creditors to contest
the amount, validity and priority of the replacement lien.
The authority to continue using cash collateral granted under the
Order will not expire until June 30, 2023, entry of a 18th interim
order authorizing continued use of cash collateral, or entry of a
final order authorizing continued use of cash collateral, whichever
is later.
A continued hearing on the matter is scheduled for June 22 at 9
a.m.
A copy of the Court's order and the Debtor's budget is available at
https://urlcurt.com/u?l=ipuXB2 from PacerMonitor.com.
The Debtor projects $198,068 in costs for June 2023.
About White Rabbit Ventures, Inc.
White Rabbit Ventures, Inc. sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. W.D. Wash. Case No. 22-40173) on
February 14, 2022. In the petition signed by Wendy J. Marvin, chief
executive officer, the Debtor disclosed up to $1 million in assets
and up to $10 million in liabilities.
Judge Mary Jo Heston oversees the case.
Geoffrey Groshong, Esq., at Groshong Law PLLC is the Debtor's
counsel.
WILLIAMS LAND: Taps Caleb Thomas as Chief Restructuring Officer
---------------------------------------------------------------
Williams Land Clearing, Grading and Timber Logger, LLC received
approval from the U.S. Bankruptcy Court for the Eastern District of
North Carolina to employ Caleb Thomas, Esq., as chief restructuring
officer.
The Debtor requires a CRO to:
a. assume all powers and authority of the Debtor's officer and
sole member Lamonte Williams;
b. collect and liquidate assets of the Debtor;
c. pay amounts authorized by the Bankruptcy Code and the court
to be paid, including in the court's final order on the use of cash
collateral; and
d. act on behalf of the Debtor in all litigation, including
pending adversary proceedings related to its Chapter 11 bankruptcy
case.
Mr. Thomas, a former partner at Parker Poe Adams & Bernstein, LLP,
will be paid at the rate of $350 per hour.
Mr. Thomas disclosed in a court filing that he is a "disinterested
person" pursuant to Section 101(14) of the Bankruptcy Code.
About Williams Land Clearing, Grading
and Timber Logger
Williams Land Clearing, Grading, and Timber Logger, LLC is a land
development company that logs timber in addition to offering lot
and site clearing, land leveling, drainage solutions, and related
services. Prior to forming Williams Land in 2016, the company's
sole member, Lamont Williams, had been in the logging business
since 2001, and added clearing and grading to his business in about
2006.
Williams Land sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.C. Case No. 22-02094) on Sept. 16,
2022, with $10 million to $50 million in assets and $1 million to
$10 million in liabilities. Lamonte Williams, manager, signed the
petition.
Judge Pamela W. McAfee oversees the case.
The Debtor tapped William P. Janvier, Esq., at Stevens Martin
Vaughn and Tadych, PLLC is the Debtor's legal counsel, and Caleb
Thomas, Esq., as chief restructuring officer.
WOLF EMPIRE: Case Summary & Six Unsecured Creditors
---------------------------------------------------
Debtor: Wolf Empire Estates, LLC
415 N. 4th St. #410
Wills Point TX 75169
Business Description: The Debtor is engaged in activities related
to real estate.
Chapter 11 Petition Date: June 5, 2023
Court: United States Bankruptcy Court
Eastern District of Texas
Case No.: 23-60276
Judge: Hon. Joshua P. Searcy
Debtor's Counsel: Robert Newark, Esq.
A NEWARK FIRM
1341 W. Mockingbird Lane 600W
Dallas TX 75247
Tel: 866-230-7236
Email: robert@newarkfirm.com
Total Assets: $1,440,502
Total Liabilities: $1,190,991
The petition was signed by Barrika Wilson-Coy 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/OWCLCWQ/Wolf_Empire_Estates_LLC__txebke-23-60276__0001.0.pdf?mcid=tGE4TAMA
YC RIVERGOLD: U.S. Trustee Unable to Appoint Committee
------------------------------------------------------
The U.S. Trustee for Region 18 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of YC Rivergold Hotel, LLC.
About YC Rivergold Hotel LLC
YC Rivergold Hotel, LLC operates in the traveler accommodation
industry. It is based in Juneau, Alaska.
YC Rivergold Hotel sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Alaska Case No. 23-00072) on April 29,
2023, with $10 million to $50 million in both assets and
liabilities. Judge Gary Spraker oversees the case.
Austin K. Barron, Esq., at Step Two Law, represents the Debtor as
legal counsel.
Wells Fargo, as lender, is represented by Lane Powell, LLC,
Polsinelli, PC, and Agentis, PLLC.
[*] Peter York Joins Gordon Brothers as Exec Team Senior Advisor
----------------------------------------------------------------
Gordon Brothers, the global advisory and investment firm, has
appointed Peter B. York as Senior Advisor to support the executive
team with the firm's growth and expansion plans.
Mr. York will leverage his experience in asset-based lending (ABL),
capital markets and secured lending to provide advice and counsel
to the business, assist with evaluating capital deployment for
Gordon Brothers' global lending practice, and give strategic and
tactical advice on the structuring of loan products. He will also
assist in the expansion into additional industries and geographies
and support the deployment of the firm's data strategy.
Mr. York brings more than 30 years of secured ABL experience to
Gordon Brothers and recently served as the head of originations and
structuring within JPMorgan Chase & Co.'s global ABL practice. His
deep expertise includes large multibank syndicated financing,
cross-border structuring, leveraged buyout finance, and bankruptcy
and debtor-in-possession financing.
Additionally, Mr. York is an adjunct professor of finance at The
Ohio State University teaching corporate restructuring and
bankruptcy; capital markets; and advanced topics in corporate
finance. Mr. York is the immediate past president of Secured
Finance Network (SFNet) and currently serves as the research chair
for the SFNet Foundation.
"We are thrilled to have someone with Peter's expertise and
credentials join us as we continue to deepen our ability to serve
clients," said Norma Kuntz, Chief Executive Officer of Gordon
Brothers. "His depth and breadth of experience and his strong
reputation as a creative problem solver makes him a great addition
to our firm."
"I'm excited to be joining Gordon Brothers as a senior advisor,"
said Mr. York. "Gordon Brothers is on a path of unprecedented
growth, and I'm looking forward to working with the executive team
to assist in the execution of their strategy."
About Gordon Brothers
Since 1903, Gordon Brothers -- http://www.gordonbrothers.com/--
has helped lenders, management teams, advisors and investors move
forward through change. The firm brings a powerful combination of
expertise and capital to clients, developing customized solutions
on an integrated or standalone basis across four services areas:
valuations, dispositions, financing and investment. Whether to fuel
growth or facilitate strategic consolidation, Gordon Brothers
partners with companies in the retail, commercial and industrial
sectors to provide maximum liquidity, put assets to their highest
and best use and mitigate liabilities. The firm conducts more than
$100 billion worth of dispositions and appraisals annually and
provides both short- and long-term capital to clients undergoing
transformation. Gordon Brothers lends against and invests in
brands, real estate, inventory, receivables, machinery, equipment
and other assets, both together and individually, to provide
clients liquidity solutions beyond its market-leading disposition
and appraisal services. The firm is headquartered in Boston, with
over 30 offices across five continents.
*********
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