/raid1/www/Hosts/bankrupt/TCR_Public/230621.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 21, 2023, Vol. 27, No. 171
Headlines
2518 CLEBURNE: Tom Howley Named Subchapter V Trustee
AEARO TECHNOLOGIES: Kirkland Seeks $13M Fees in Tossed Chapter 11
AEARO TECHNOLOGIES: Moves to Revive Chapter 11 After Dismissal
AMERICANAS SA: Says Past Management Team Committed Fraud
ARTESIA SPRINGS: Case Summary & 20 Largest Unsecured Creditors
AULT ALLIANCE: Inks $10 Million Loan Agreement With Affiliate
BANK OF COMMERCE II: Fitch Assigns 'BB' Rating on Preferred Notes
BARFIELD CONTRACTING: Amends Plan to Include Coastal Claim Details
BIOLASE INC: Receives Delisting Notice From Nasdaq
BITTREX INC: Gets Court Okay for 700 Bitcoin DIP Financing
BORREGO COMMUNITY: Plan Exclusivity Period Extended to Sept. 7
BRBRSHY INVESTMENTS: Seeks Chapter 11 to Pursue Sale
CAPCIUM INC: Seeks Bankruptcy Protection Under CCAA
CASTLE US HOLDING: $295M Bank Debt Trades at 27% Discount
CCS-CMGC HOLDINGS: $500M Bank Debt Trades at 28% Discount
CELSIUS NETWORK: Hearing on Exclusivity Bid Set for June 28
CENTRICFM SOLUTIONS: Case Summary & 11 Unsecured Creditors
CHANJE ENERGY: Public Foreclosure Sale Set for June 26
CHURCHILL ORTHOPEDIC: Nancy Isaacson Named Subchapter V Trustee
CONGREGATION COFFEE: Leo Congeni Named Subchapter V Trustee
CSR WORLDWIDE: Stephen Moriarty Named Subchapter V Trustee
CSR-OK REAL ESTATE: Stephen Moriarty Named Subchapter V Trustee
DELCATH SYSTEMS: All Seven Proposals Passed at Annual Meeting
DESOLATION HOLDINGS: August 31 Claims Bar Date Set
DESTINED PROPERTIES: D. Ray Strong Named Subchapter V Trustee
DIAMOND SPORTS: Deadline to File Claims Set for July 17
DONNELLY HOLDINGS: Obtains Initial Stay Order Under CCAA
EKSO BIONICS: Amends Offering Agreement With H.C. Wainwright
ENDO INTERNATIONAL: Seeks to Extend Plan Exclusivity to October 10
ENDO PARENT $156M Bank Debt Trades at 23% Discount
EVANGELICAL RETIREMENT: Friendship Village Files for Chapter 11
EVERYTHING BLOCKCHAIN: Posts $1.8 Million Net Loss in First Quarter
FINESSE AESTHETICS: Jerrett McConnell Named Subchapter V Trustee
FOREST CITY: $1.24B Bank Debt Trades at 25% Discount
FREE SPEECH: Creditors Accuse Jones Affiliate of Ducking Discovery
FTX TRADING: Bahamian Court to Review SBF's New U.S. Charges
FTX TRADING: Bankruptcy Court Won't Reveal Customer Names
FTX TRADING: Delaware Judge Urges Mediation on Bahamas' Claims
GARCIA GRAIN: Plan Exclusivity Period Extended to September 18
GENESIS CARE: U.S. Trustee Appoints Creditors' Committee
GIRARDI & KEESE: Erika Aims to Settle $15M Suit in Tom's Bankruptcy
GIRARDI & KEESE: Tom Competent to Face Trial
GLOBAL MEDICAL: $1.98B Bank Debt Trades at 40% Discount
GREELEY LAND: Seeks to Extend Exclusive Solicitation Period
GROWLIFE INC: Incurs $4.5 Million Net Loss in 2022
GROWLIFE INC: Silverback Capital Reports 9.9% Equity Stake
H & H INVESTMENT: Christopher Hayes Named Subchapter V Trustee
HAUSER INC: Subchapter V Plan Confirmed by Judge
HAVRE EAGLES: Voluntary Chapter 11 Case Summary
HITSON CABINET: Asset Sale Proceeds to Fund Plan
INSTANT BRANDS: Davis Polk Serves as Adviser on Restructuring
INTELLIPHARMACEUTICS: Incurs $2.9 Million Net Loss in 2022
INVACARE CORP: White Oak Provides $40-Mil. Credit Facility
JRT340ASSOCIATES: July 18 Hearing on Bid to Extend Plan Exclusivity
KENT SEITZ: Case Summary & Five Unsecured Creditors
LATAM AIRLINES: Justices Pass on Bond Interest Dispute
LIFESCAN GLOBAL: Davis Polk Advises Term Lenders on Refinancing
LUCKY BUCKS: Bondholders Spar With Trive Over Dividends
LUCKY BUCKS: DIP Loan from Wilmington Savings Wins Interim OK
MAGENTA BUYER: S&P Alters Outlook to Negative, Affirms 'B-' ICR
MOVIA ROBOTICS: Plan Exclusivity Period Extended to August 16
NAPA MANAGEMENT: $610M Bank Debt Trades at 30% Discount
NEP EUROPE: Fitch Alters Outlook on 'B-' LongTerm IDR to Stable
NEXTPLAY TECHNOLOGIES: Mark Vange Quits as Chief Technology Officer
NORTHLAND POWER: Fitch Gives BB+ Rating on Series 2023-A Sub. Notes
NOVABAY PHARMACEUTICALS: All 3 Proposals Passed at Annual Meeting
OCYAN SA: Completes $2.7-Billion Cross-Border Restructuring
OUTPUT SERVICES: $180.3M Bank Debt Trades at 62% Discount
OUTPUT SERVICES: $369.8M Bank Debt Trades at 67% Discount
PACIFIC GREEN: Inks Deal to Sell 100% of PGBEP1 Shares for US$93M
PALADIN REINSURANCE: Enters Into Commutation Plan
PAZZO PAZZO: Cook Discusses Commercial Lease Termination
PGX HOLDINGS: U.S. Trustee Appoints Creditors' Committee
PHILUX GLOBAL: Unit Cancels Investment Deal With Saigon Silicon
PLOURDE SAND: Exclusivity Period Extended to June 29
PRECIPIO INC: All Three Proposals Passed at Annual Meeting
PUERTO RICO: PREPA at Risk of Moving July 2023 Debt Plan Hearing
PUERTO RICO: PREPA Bondholders Want Higher Claims in Bankruptcy
PURE BIOSCIENCE: Posts $876K Net Loss in Third Quarter
QUALTEK SERVICES: Court OKs $141MM DIP Loan from PNC and UMB
RICHMOND HOSPITALITY: Plan Exclusivity Period Extended to Sept. 10
RODA LLC: Hilco Notes of July 12 Bid Deadline for Ice Arena
SABRE GLBL: $404M Bank Debt Trades at 26% Discount
SANIBEL REALTY: Seeks to Extend Plan Exclusivity to 60 Days
SAS AB: Court Denies Norske Bid to Get Appointed to Committee
SEINEYARD INC: Seeks to Extend Plan Exclusivity, Mulls Asset Sale
SILVER TRIDENT: Jarrod Martin Named Subchapter V Trustee
SMI ACQUISITION INC: $235M Bank Debt Trades at 30% Discount
SNOWSHOE MILLWORKS: Steven Weiss Named Subchapter V Trustee
SOUND INPATIENT: $610M Bank Debt Trades at 39% Discount
STAUBITZ MARKET: On the Brink of Bankruptcy
SUNNY MILLS: Case Summary & Six Unsecured Creditors
SURGALIGN HOLDINGS: Files Chapter 11 to Facilitate Asset Sale
TEMESCAL WELLNESS: Auction for Evermore Cannabis on June 26
TGPC PROPERTIES: Seeks to Extend Plan Exclusivity to September 18
TRICIDA INC: Davis Polk Advises Noteholders in Ch. 11 Liquidation
TRITEK INTERNATIONAL: U.S. Trustee Appoints Creditors' Committee
TURTLE CREEK: HN Capital Nabs Site in Bankruptcy
UNICON ACQUISITION: SSG Was Investment Banker in Sale to PE Buyer
UNITY PREPARATORY: S&P Assigns 'BB' Rating on 2023 Revenue Bonds
US STEEL: Fitch Affirms LongTerm IDR at 'BB', Outlook Stable
VERITAS FARMS: Issues $3M Convertible Notes to Cornelis F. Wit
VICE GROUP: Court OKs $60MM DIP Loan on Final Basis
VIPER ENERGY: Fitch Alters Outlook on 'BB-' LongTerm IDRs to Pos.
VISIONARY LABELS: Unsecureds Will Get 25% Dividend over 96 Months
VOYAGER DIGITAL: Confirmed Plan Declared Effective May 19
VROON: Norton Rose Advised Creditors on Parallel Restructuring
WESCO AIRCRAFT: U.S. Trustee Appoints Creditors' Committee
XEBEC ADSORPTION: CCAA Court Sets July 24 Claims Bar Date
YAK TIMBER: U.S. Trustee Unable to Appoint Committee
*********
2518 CLEBURNE: Tom Howley Named Subchapter V Trustee
----------------------------------------------------
The U.S. Trustee for Region 7 appointed Tom Howley, Esq., at Howley
Law, PLLC, as Subchapter V trustee for 2518 Cleburne Housing LLC.
Mr. Howley 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. Howley declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Tom Howley, Esq.
Howley Law, PLLC
711 Louisiana Street, Suite 1850
Houston, TX 77002
Telephone: (713) 333-9120
Email: tom@howley-law.com
About 2518 Cleburne
2518 Cleburne Housing, LLC, a Houston-based company, filed a
petition under Chapter 11, Subchapter V of the Bankruptcy Code
(Bankr. S.D. Texas Case No. 23-32106) on June 5, 2023, with $1
million to $10 million in both assets and liabilities. Robert L.
Wiseman, managing member, signed the petition.
Judge Eduardo V. Rodriguez oversees the case.
Susan Tran Adams, Esq., at Tran Singh, LLP, is the Debtor's legal
counsel.
AEARO TECHNOLOGIES: Kirkland Seeks $13M Fees in Tossed Chapter 11
-----------------------------------------------------------------
Henrik Nilsson of Law360 reports that Kirkland & Ellis LLP on
Sunday sought an Indiana federal judge's approval for nearly $13
million in fees and expenses for the firm's representation of 3M
subsidiary Aereo Technology's bankruptcy case between February and
April 2023, days after the judge tossed the case upon finding the
company financially healthy.
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.
AEARO TECHNOLOGIES: Moves to Revive Chapter 11 After Dismissal
--------------------------------------------------------------
Evan Ochsner of Bloomberg Law reports that a 3M Co. subsidiary that
sought to use bankruptcy to resolve claims that it made faulty
combat earplugs is appealing a lower court's decision dismissing
its Chapter 11 case.
Aearo Technologies LLC's Chapter 11 case did not have a "valid
reorganization purpose," Judge Jeffrey J. Graham of the US
Bankruptcy Court for the Southern District of Indiana ruled in
dismissing the bankruptcy.
Aearo's notice of appeal, filed Monday, June 12, 2023, sets up a
high-stakes legal battle over whether companies can use bankruptcy
to resolve mass tort liability.
Graham said his ruling isn't intended to permanently block Aearo
from seeking relief from its liabilities in bankruptcy, "should the
circumstances warrant it," but allowing the case to proceed at this
time would be "fatally premature."
The case is Aearo Technologies LLC, Bankr. S.D. Ind., 6/12/23.
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.
AMERICANAS SA: Says Past Management Team Committed Fraud
--------------------------------------------------------
Daniel Cancel of Bloomberg News of the previous management team at
Brazilian retailer Americanas SA carried out fraudulent accounting
practices and hid them from investors and the board of directors,
according to a filing on Tuesday and comments from the current
chief executive officer.
The former executive team, led by then Chief Executive Officer
Miguel Gutierrez, created false advertising contracts as a way to
reduce costs on the balance sheet that ballooned to 21.7 billion
reais ($4.5 billion) as of Sept. 30 2022, according to the filing
that was based on information from an independent investigation.
About Americanas SA
Americanas was one of the largest diversified retail chains in
Brazil, with a wide platform of physical stores, robust e-commerce,
fintech, and has just entered into the niche food retail. It is
listed on B3, being indirectly controlled by billionaire Jorge
Paulo Lemann, Carlos Alberto Sicupira and Marcel Telles.
The retailer nosedived in January 2023 after becoming mired in an
accounting scandal. The firm filed for bankruptcy at a court in Rio
de Janeiro on Jan. 19, 2023.
Americanas sought protection under Chapter 15 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 23-10092) on Jan. 25,
2023. White & Case LLP, led by John K. Cunningham, is the U.S.
counsel.
ARTESIA SPRINGS: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Artesia Springs, LLC
8130 Interchance Parkway
San Antonio, TX 78218
Business Description: Artesia Springs is locally owned and
specializes in providing quality bottled
water for home & office delivery, private
label options, bulk water and more.
Chapter 11 Petition Date: June 20, 2023
Court: United States Bankruptcy Court
Western District of Texas
Case No.: 23-50779
Judge: Hon. Craig A. Gargotta
Debtor's Counsel: William B. Kingman, Esq.
LAW OFFICES OF WILLIAM B. KINGMAN
3511 Broadway
San Antonio, TX 78209
Tel: (210) 829-1199
Email: bkingman@kingmanlaw.com
Total Assets as of April 30, 2023: $858,165
Total Liabilities as of April 30, 2023: $1,591,636
The petition was signed by Rodolfo Ramon as CEO.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/WPYFBUA/Artesia_Springs_LLC__txwbke-23-50779__0001.0.pdf?mcid=tGE4TAMA
AULT ALLIANCE: Inks $10 Million Loan Agreement With Affiliate
-------------------------------------------------------------
Ault Alliance, Inc. disclosed in a Form 8-K filed with the
Securities and Exchange Commission that it entered into a Loan
Agreement with Ault & Company, Inc., a Delaware corporation, as
lender.
The Credit Agreement provides for an unsecured, non-revolving
credit facility in an aggregate principal amount of up to
$10,000,000. All loans under the Credit Agreement are due within
five business days after request by A&C and A&C is not obligated to
make any further Advances under the Credit Agreement after Dec. 8,
2023. Advances under the Credit Agreement bear interest at the
rate of 9.5% per annum and may be repaid at any time without
penalty or premium.
A&C is an affiliate of the Company.
About Ault Alliance Inc.
Ault Alliance, Inc. (formerly, BitNile Holdings, Inc.) is a
diversified holding company pursuing growth by acquiring
undervalued businesses and disruptive technologies with a global
impact. Through its wholly and majority-owned subsidiaries and
strategic investments, Ault Alliance owns and operates a data
center at which it mines Bitcoin and provides mission-critical
products that support a diverse range of industries, including oil
exploration, crane services, defense/aerospace, industrial,
automotive, medical/biopharma, consumer electronics, hotel
operations and textiles. In addition, Ault Alliance extends credit
to select entrepreneurial businesses through a licensed lending
subsidiary. Ault Alliance's headquarters are located at 11411
Southern Highlands Parkway, Suite 240, Las Vegas, NV 89141;
www.Ault.com.
Ault Alliance reported a net loss of $189.83 million for the year
ended Dec. 31, 2022, compared to a net loss of $23.04 million for
the year ended Dec. 31, 2021. As of March 31, 2023, the Company
had $526.91 million in total assets, $336.56 million in total
liabilities, and $190.34 million in total stockholders' equity.
New York, New York-based Marcum LLP, the Company's auditor since
2016, issued a "going concern" qualification in its report dated
April 17, 2023, citing that the Company has a working capital
deficiency, has incurred net losses and needs to raise additional
funds to meet its obligations and sustain its operations. These
conditions raise substantial doubt about the Company's ability to
continue as a going concern.
BANK OF COMMERCE II: Fitch Assigns 'BB' Rating on Preferred Notes
-----------------------------------------------------------------
Fitch Ratings has assigned a 'BB' preferred securities rating of to
Bank of Commerce Holdings Trust II. Bank of Commerce Holdings Trust
II is a legacy Trust Preferred Securities (TRUPS) issuance of
Columbia Banking System, Inc. (COLB). Fitch has previously rated
the TRUPS attributable to Umpqua Holdings, pre-merger.
KEY RATING DRIVERS
The trust preferred securities are notched four levels below COLB's
Viability Rating (bbb+), twice for loss severity and twice for
non-performance. These ratings are assigned in accordance with
Fitch's criteria and assessment of the instrument's non-performance
and loss severity risk profiles.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
The ratings of COLB's trust preferred securities are sensitive to
any negative change to COLB's VR as outlined in its May 2023 press
release.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
The ratings of COLB's trust preferred securities are sensitive to
any positive change to COLB's VR as outlined in its May 2023 press
release.
Entity/Debt Rating
----------- ------
Bank of Commerce
Holdings Trust II
Preferred LT BB New Rating
BARFIELD CONTRACTING: Amends Plan to Include Coastal Claim Details
------------------------------------------------------------------
Barfield Contracting & Associates, Inc., submitted a First Addendum
to Plan of Reorganization dated June 15, 2023.
The Critical Vendor and Settlement Agreement between American
Builders & Contractors Supply Co., Inc., as successor by merger to
Coastal Roofing Supply - US LBM, LLC, Debtor and Kevin Barfield
("Critical Vendor and Settlement Agreement"), which was approved by
this Order shall remain in full force and effect and will not in
any way be altered or modified by the Plan of Reorganization.
The Plan shall be modified to add Class 7 as follows:
Class 7 consists of the pre-petition Claim by Coastal, as reflected
by Proof of Claim No. 11, which Claim is deemed allowed. Coastal's
Claim shall be treated pursuant to the terms and conditions of the
Critical Vendor and Settlement Agreement. The Plan shall not in any
way modify or alter the Critical Vendor and Settlement Agreement.
The Plan of Reorganization incorporates and adopts all terms and
conditions of the Critical Vendor and Settlement Agreement as if
restated therein and confirmation of the Plan shall approve the
Critical Vendor and Settlement Agreement. Coastal is impaired under
the Plan and entitled to vote.
A full-text copy of the First Addendum to Plan of Reorganization
dated June 15, 2023 is available at https://urlcurt.com/u?l=UNJI8D
from PacerMonitor.com at no charge.
Attorney for Debtor:
Jeffrey S. Ainsworth, Esq.
Jacob D. Flentke, Esq.
BransonLaw, PLLC
1501 E. Concord St.
Orlando, FL 32803
Telephone: (407) 894-6834
Facsimile: (407) 894-8559
Email: jeff@bransonlaw.com
E-mail: jacob@bransonlaw.com
About Barfield Contracting & Associates
Barfield Contracting & Associates, Inc., is a 5-Star rated GAF
Master Elite(R) Residential and Commercial Roofing Company Serving
all of Brevard County and Central Florida, headquartered in Cocoa,
Florida.
The Debtor filed a Chapter 11 bankruptcy petition (Bankr. M.D. Fla.
Case No. 23-00396) on Feb. 1, 2023, with as much as $1 million in
both assets and liabilities. Judge Grace E. Robson oversees the
case.
The Debtor is represented by Jeffrey S. Ainsworth, Esq., at
BransonLaw, PLLC.
BIOLASE INC: Receives Delisting Notice From Nasdaq
--------------------------------------------------
Biolase, Inc. was notified by the Listing Qualifications Staff of
The Nasdaq Stock Market LLC that the Company did not meet the
minimum closing bid price requirement of $1.00 for continued
listing, as set forth in Nasdaq Listing Rule 5550(a)(2), as the
Staff has determined that as of June 8, 2023, the Company's
securities had a closing bid price of $0.10 or less for ten
consecutive trading days, from May 24, 2023 through June 7, 2023.
As such, the Staff determined to delist the Company's common stock
from the Nasdaq Capital Market and suspend trading of the common
stock at the opening of business on June 20, 2023, and file a Form
25-NSE with the Securities and Exchange Commission, unless the
Company timely requests a hearing on an appeal of this
determination by the Staff before the Nasdaq Hearings Panel, which
will stay the suspension of the Company's common stock pending the
panel's decision. The Company plans to timely submit a hearing
request to Nasdaq's Hearings Department.
As previously reported, on Jan. 11, 2023, Biolase received a
deficiency notification from Nasdaq indicating that the bid price
for the Company's common stock for the last 30 consecutive business
days had closed below the minimum $1.00 per share required for
continued listing under Nasdaq Listing Rule 5550(a)(2). The
Company was provided a 180 calendar day grace period, or until July
10, 2023, to regain compliance with the Rule.
About Biolase
Biolase, Inc. -- http://www.biolase.com-- is a medical device
company that develops, manufactures, markets, and sells laser
systems in dentistry and medicine. BIOLASE's products advance the
practice of dentistry and medicine for patients and healthcare
professionals. BIOLASE's proprietary laser products incorporate
approximately 259 actively patented and 24 patent-pending
technologies designed to provide biologically and clinically
superior performance with less pain and faster recovery times.
Biolase reported a net loss of $28.63 million in 2022, a net loss
of $16.16 million in 2021, a net loss of $16.83 million in 2020, a
net loss of $17.85 million in 2019, and a net loss of $21.52
million in 2018. As of Sept. 30, 2022, the Company had $42.86
million in total assets, $29.01 million in total liabilities, and
$13.86 million in total stockholders' equity.
Costa Mesa, California-based BDO USA, LLP, the Company's auditor
since 2005, issued a "going concern" qualification in its report
dated March 28, 2023, citing that the Company has suffered
recurring losses from operations and has had negative cash flows
from operations for each of the three years ended Dec. 31, 2022.
These factors, among others, raise substantial doubt about its
ability to continue as a going concern.
BITTREX INC: Gets Court Okay for 700 Bitcoin DIP Financing
----------------------------------------------------------
The National Law Review reports that for the first time, on June 7,
2023, a bankruptcy court authorized a debtor to obtain postpetition
financing solely in bitcoin ("BTC") from the DIP lender.
Bittrex filed a postpetition financing motion on the petition date
requesting that Bittrex's ultimate parent company, Aquila Holdings
Inc. ("Aquila"), be authorized to issue a DIP loan of 700 BTC to
Bittrex. The DIP financing agreement provides that Aquila is
entitled to a non-priming, super-priority administrative claim
pursuant to section 364(c) of the Bankruptcy Code (i.e., higher
priority over any and all administrative expense claims), but does
not grant Aquila a security interest in any of Bittrex's assets.
Bittrex intends to use the DIP loan to fund the bankruptcy case and
make distributions of cryptocurrency holdings to its former
customers.
There were several reasons why Aquila required the DIP loan to
consist exclusively of BTC rather than fiat currency. First, in the
crypto industry it is common for participants to borrow funds in
BTC. Second, after fiat banking services provider Silvergate Bank
closed, it became very difficult for a cryptocurrency firm in
wind-down mode to access fiat currency. And perhaps most
importantly, Aquila would face negative tax consequences if it was
required to liquidate its BTC, which would greatly increase the
expense of Bittrex's DIP loan.
According to the financing motion, once Bittrex receives the BTC
from Aquila, Bittrex will promptly convert the BTC into U.S.
dollars to minimize the risk of currency rate fluctuations.
Bittrex will then use the BTC proceeds to pay administrative
expenses in accordance with the budget attached to the motion.
Bittrex will need to repay the DIP loan principal no later than
nine months after the interim order was entered (i.e., February 10,
2024), and the principal portion of the DIP loan must be repaid in
BTC. Any other obligations, like the 4% interest per annum, may be
repaid in BTC, U.S. dollars, or any combination thereof. To protect
Bittrex against BTC price fluctuations between the time of
borrowing and maturity, Bittrex negotiated a cap on the amount of
additional BTC it may need to acquire to pay any shortfall.
Specifically, Bittrex is only required to pay Aquila BTC equal to
110% of the value of the shortfall on the petition date. In other
words, Bittrex is protected in the event the price of BTC rises
after the petition date by only needing to pay Aquila up to 110% of
the value of BTC advanced on the petition date.
For example, on the petition date the value of BTC in U.S. dollars
was $28,611.44. The DIP loan is for 700 BTC, which means that on
the maturity date Bittrex needs to repay 700 BTC to Aquila. If the
price of BTC remained stable during the nine-month period, then
Bittrex would need $20,028,008 worth of BTC to repay the DIP loan.
But because the price of BTC constantly changes, if the price per
BTC skyrockets following the petition date, Bittrex would only need
to pay Aquila $22,030,808.80 of BTC (i.e., 110% of the value of BTC
on the petition date) to satisfy the principal obligation, thus
capping its risk.
Takeaways
Bittrex's DIP financing is relatively non-controversial – it does
not include a rollup, does not prime any preexisting debt, does not
impose a security interest against any assets, only includes a 4%
interest rate per annum, meaningfully caps any upside Aquila may
receive for postpetition increases in BTC valuation, and authorizes
Bittrex to recognize any price savings if the value of BTC falls
after the petition date. What may appear to be unique, at least for
bankruptcy purposes, is that the loan is in BTC, although entities
in the crypto industry commonly lend and borrow cryptocurrencies
from one another. As crypto firms continue to file bankruptcy,
Bittrex's DIP facility may serve as a template for firms that
intend to borrow BTC or other cryptocurrencies to finance their
cases.
Bankruptcy practitioners can now seek to expand the scenarios for
when BTC or other cryptocurrency DIP financing is acceptable in
other cases. Debtors may begin to seek financing with more obscure
cryptocurrencies or negotiate more complicated risk-transferring
procedures to account for postpetition currency valuation
fluctuations. For example, to obtain a lower interest rate or more
value, debtors may agree to (i) a higher cap for a lender to obtain
a larger principal payment (when valuations increase postpetition),
and/or (ii) limit the floor of how large of a principal discount
the debtor may obtain (when valuations drop postpetition).
The future has just begun to present creative cryptocurrency DIP
financing solutions to debtors and lenders.
About Bittrex Inc.
Bittrex is a regulated digital assets exchange platform.
Desolation Holdings and three of its affiliates filed voluntary
petitions for relief under Chapter 11 of the Bankruptcy Code
(Bankr. D. Del., Lead Case No. 23-10597) on May 8, 2023.
Desolation Holdings' debtor-affiliates are Bittrex, Inc., Bittrex
Malta Holdings Ltd. and Bittrex Malta Ltd.
At the time of filing, the Debtors estimated consolidated assets of
$500 million to $1 billion in assets and $500 million to $1 billion
in liabilities.
The Hon. Brendan Linehan Shannon presides over the cases.
Quinn Emanuel Urquhart & Sullivan, LLP, led by partner Patricia B.
Tomasco, is the Debtors' counsel. Berkeley Research Group, LLC, is
the Debtors' restructuring advisor. Omni Agent Solutions is the
claims agent.
BORREGO COMMUNITY: Plan Exclusivity Period Extended to Sept. 7
--------------------------------------------------------------
The Hon. Laura Stuart Taylor of the U.S. Bankruptcy Court for the
Southern District of California extended Borrego Community Health
Foundation's exclusive periods to file a Chapter 11 plan and
solicit acceptances thereof to September 7 and November 4, 2023,
respectively.
The Debtor's initial request to file a plan was scheduled to end on
January 10, 2023. The Debtor moved to extend the exclusivity period
to May 10, which was approved by the Court's Order on Debtor's
Motion for Entry of an Order Pursuant to Section 1121 of the
Bankruptcy Code Extending the Exclusive Period to File a Chapter 11
Plan and Solicit Acceptances.
The Debtor explained that the case is a large Chapter 11 Case
consisting of a system of 18 clinics, two pharmacies, and six
mobile units. Moreover, this case is complex, particularly given it
is a healthcare case and the Debtor is a Federally Qualified Health
Center. Among other things, operating and selling an FQHC raises
issues of healthcare regulatory law, labor law, mergers &
acquisitions law, and bankruptcy law, among other fields. There are
also issues that arise in simply maintaining the Debtor's
operations pending closure of the Sale, including consulting with
Desert Aids Project d/b/a DAP Health.
Further, the Debtor has already demonstrated a clear path forward
for the resolution of the Case, including the sale and the
California Department of Health Care Services Settlement which the
Debtor anticipates will result in payment in full to allowed
unsecured claims. The Debtor has, therefore, demonstrated a
reasonable prospect to file a viable plan. The Debtor submits that
the extension is reasonable and appropriate under the circumstances
and should be granted as being in the best interests of the
Debtor's estate and creditors.
About Borrego Community Health Foundation
Borrego Community Health Foundation offers, among other services,
comprehensive primary care, pediatric care, urgent care, behavioral
health services, dental services, specialty care, transgender
health, women's health, prenatal care, veteran's health, and
chiropractic services. Borrego Community is a non-profit public
charity, tax-exempt under section 501(c)(3) of the Internal Revenue
Code. The Foundation, as of Sept. 12, 2022, had 24 brick and mortar
sites including administrative sites, two pharmacies and six mobile
units covering a service area consisting of a 250-mile corridor on
the eastern side of San Diego and Riverside Counties, Calif.
Borrego Community Health Foundation sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. S.D. Calif. Case No.
22-02384) on Sept. 12, 2022, with between $50 million and $100
million in both assets and liabilities. Isaac Lee, chief
restructuring officer, signed the petition.
Judge Laura S. Taylor oversees the case.
The Debtor tapped Tania M. Moyron, Esq., at Dentons US, LLP as
bankruptcy counsel and Hooper Lundy & Bookman, P.C. as special
counsel. Kurtzman Carson Consultants, LLC is the Debtor's claims
and noticing agent.
Jacob Nathan Rubin, the patient care ombudsman appointed in the
Debtor's case, tapped Levene Neale Bender Yoo & Golubchik, LLP as
bankruptcy counsel and Dr. Tim Stacy DNP, ACNP-BC as consultant.
On Sept. 26, 2022, the U.S. Trustee appointed an official unsecured
creditors' committee in this Chapter 11 case. Pachulski Stang Ziehl
& Jones, LLP serves as the committee's counsel.
BRBRSHY INVESTMENTS: Seeks Chapter 11 to Pursue Sale
----------------------------------------------------
BRBRSHY Investments Inc. filed for chapter 11 protection with a
deal to sell certain of its properties.
The Debtor is a Wyoming Corporation and as its business, it owns
245 rental properties and 104 lots located in LaGrange, Georgia and
a strip mall in Redding, California.
According to court filings, BRBRSHY Investments estimates between
$1 million and $10 million in debt owed to 1 to 49 creditors. The
petition states that funds will be available to unsecured
creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
July 10, 2023, at 3:00 p.m.
Stribling Debt
On Nov. 30, 2021, Debtor entered into a financing transaction with
Ty Stribling ("Secured Creditor") whereby Stribling financed the
acquisition of 254 rental properties and 100 lots in LaGrange,
Georgia (the "Troup Properties"). Secured Creditor asserts a first
priority lien upon and security interest in the Troup Properties
and the rental income generated therefrom. As of June 12, 2023,
Secured Creditor is owed $9,358,380, with interest continuing to
accrue at $1,692 per day.
Asset Purchase Agreement
Pursuant to the asset purchase agreement, the Debtor seeks to sell
a 160-unit portfolio comprised of single family, duplex, and
apartments referred to in the APA as the "Properties" to
Hillstrong, LLC, or its successors and/or assigns for the amount of
$9,796,000.
The Asset Purchase Agreement defines the Closing Date as "on or
before the 21st day subsequent [to] bankruptcy court approval of
the Agreement and closing as the Seller is in an active bankruptcy
as identified as Case #23-10654-pmb, Northern District of Georgia,
and upon the Purchaser's designated counsel providing Purchaser a
clear to close after its reasonable inspection of Property titles
being in the form and manner agreed to herein".
The Debtor is filing the instant Motion to enable the Closing Date
to occur as soon as possible.
The Debtor asserts that: (i) Hillstrong, LLC is a good faith
purchaser because the Buyer has at all times (a) acted in good
faith and (b) agreed to pay the fair market value for the property;
(ii) the sale was negotiated at arm's length; (iii) the Buyer did
not collude or take unfair advantage of the process; and (iv) the
Buyer is not an affiliate or insider of the Debtor.
About BRBRSHY Investments
BRBRSHY Investments Inc. owns approximately 245 rental properties
and 104 lots located in LaGrange, Georgia and a strip mall in
Redding, California.
BRBRSHY Investments Inc. filed a petition for relief under Chapter
11 of the Bankruptcy Code (Bankr. N.D. Ga. Case No. 23-10654) on
June 5, 2023. In the petition filed by Rick Bryan, as president,
the Debtor reported assets between $10 million and $50 million and
liabilities between $1 million and $10 million.
The Debtor is represented by:
Cameron M. McCord, Esq.
Jones & Walden, LLC
2701 Chateau Way
McKinleyville, CA 95519
CAPCIUM INC: Seeks Bankruptcy Protection Under CCAA
---------------------------------------------------
The Superior Court of Quebec, Commercial Division, issued an order
granting, inter alia, a stay of proceedings in favor of Capcium
Inc. and Gelcan Corporation Inc, and appointed Raymond Chabot Inc.
("RCI") as Monitor of Companies' CCAA proceedings.
Capcium said it owes $27.2 million to its creditors: (i)
Scotiabank: principal amount of $6.2 million (secured); (ii)
Investissement Quebec: $16.8 million (secured); (iii) Others: $4.2
million (unsecured); and (iv) There are no unpaid deduction at
source. Capcium said it is unable to meet its obligations as they
become due.
According to the Company, during the construction of the plant,
cost overruns estimated at $8.4 million occurred including as a
result of the Covid-19 pandemic. The plant was completed during the
crisis with major delays.
The forecasts also projected to obtain Health Canada and FDA
licences shortly after the completion of the new facilities.
Again, in large part as a result of the pandemic, the licenses took
significantly more time to obtain, having direct consequences on
the sales for the pharmaceutical products it anticipated to
manufacture for the Canadian and US markets.
As a result of the cost overruns on the construction of the new
plant, reductions in equipment purchases had to be made, which
impeded in the ability of Capcium to reach profitability, the
Companies said.
The Companies' restructuring plan is as follows:
a) Reducing the costs to the minimum required to maintain the
production facility in working order and to maintain the licenses.
This would imply a significant reduction in the number of
employees;
b) Beginning a sale and investment solicitation process ("SISP")
to find buyers for all assets;
c) Depending on the outcome of the SISP, filing a plan of
arrangement for the benefits of the creditors; and
d) The Bank, as well as Alexandria would cover the occupancy and
fees related to maintaining the facilities in working order and
maintaining the licenses during the restructuring process via an
interim financing and reductions in the rent.
Copy of the initial order and other documents are available at the
monitor's website at
https://www.raymondchabot.com/fr/entreprises/dossiers-publics/capcium-inc-et-al/.
Capcium Inc. is a startup company, which operated at its inception
in facilities shared with the company from which it was spun off.
It also operated at the time out of the Aurora Cannabis facility,
where they could manufacture their products free of rent on Aurora
Cannabis's equipment.
CASTLE US HOLDING: $295M Bank Debt Trades at 27% Discount
---------------------------------------------------------
Participations in a syndicated loan under which Castle US Holding
Corp is a borrower were trading in the secondary market around 72.7
cents-on-the-dollar during the week ended Friday, June 16, 2023,
according to Bloomberg's Evaluated Pricing service data.
The $295 million facility is a Term loan that is scheduled to
mature on January 29, 2027. The amount is fully drawn and
outstanding.
Castle US Holding Corporation provides database tools and software
to public relations and communications professionals.
CCS-CMGC HOLDINGS: $500M Bank Debt Trades at 28% Discount
---------------------------------------------------------
Participations in a syndicated loan under which CCS-CMGC Holdings
Inc is a borrower were trading in the secondary market around 71.9
cents-on-the-dollar during the week ended Friday, June 16, 2023,
according to Bloomberg's Evaluated Pricing service data.
The $500 million facility is a Term loan that is scheduled to
mature on October 1, 2025. The amount is fully drawn and
outstanding.
CCS-CMGC Holdings, Inc. operates as a holding company. The Company,
through its subsidiaries, provides health care services.
CELSIUS NETWORK: Hearing on Exclusivity Bid Set for June 28
-----------------------------------------------------------
The Honorable Martin Glenn of the U.S. Bankruptcy Court for the
Southern District of New York is set to hold a hearing on June 28,
2023, at 10:00 a.m., prevailing Eastern Time, to consider the third
request filed by Celsius Network LLC and its affiliates for entry
of an Order extending the period within which the Debtors have the
exclusive right to solicit acceptances of a Chapter 11 Plan
pursuant to Section 1121 of the Bankruptcy Code by 91 days, through
and including September 29.
The request is without prejudice to the Debtors' right to seek
further extensions to the solicitation exclusivity period.
The Debtors explained they seek an extension of the solicitation
exclusivity period to continue working toward their goal of
confirming a value-maximizing Chapter 11 plan. This extension is
essential so that the Debtors may steer the Chapter 11 cases to
their value-maximizing conclusion. The Debtors understand that time
is of the essence to complete the confirmation process and
anticipate filing a disclosure statement explaining their
bankruptcy-exit Plan prior to the hearing on this Motion.
The Debtors are represented by:
Joshua A. Sussberg, Esq.
KIRKLAND & ELLIS LLP
KIRKLAND & ELLIS INTERNATIONAL LLP
601 Lexington Avenue
New York, NY 10022
Telephone: (212) 446-4800
Facsimile: (212) 446-4900
E-mail: jsussberg@kirkland.com
- and -
Patrick J. Nash, Jr., Esq.
Ross M. Kwasteniet, Esq.
Christopher S. Koenig, Esq.
Dan Latona, Esq.
KIRKLAND & ELLIS LLP
KIRKLAND & ELLIS INTERNATIONAL LLP
300 North LaSalle Street
Chicago, IL 60654
Telephone: (312) 862-2000
Facsimile: (312) 862-2200
E-mail: patrick.nash@kirkland.com
ross.kwasteniet@kirkland.com
chris.koenig@kirkland.com
dan.latona@kirkland.com
About Celsius Network
Celsius Network LLC -- http://www.celsius.network/-- is a
financial services company that generates revenue through
cryptocurrency trading, lending, and borrowing, as well as by
engaging in proprietary trading.
Celsius helps over a million customers worldwide to find the path
towards financial independence through a compounding yield service
and instant low-cost loans accessible via a web and mobile app.
Celsius has a blockchain-based fee-free platform where membership
provides access to curated financial services that are not
available through traditional financial institutions.
The Celsius Wallet claims to be one of the only online crypto
wallets designed to allow members to use coins as collateral to get
a loan in dollars, and in the future, to lend their crypto to earn
interest on deposited coins (when they're lent out).
Crypto lenders such as Celsius boomed during the COVID-19 pandemic,
drawing depositors with high interest rates and easy access to
loans rarely offered by traditional banks. But the lenders'
business model came under scrutiny after a sharp sell-off in the
crypto market spurred by the collapse of major tokens terraUSD and
luna in May 2022.
New Jersey-based Celsius froze withdrawals in June 2022, citing
"extreme" market conditions, cutting off access to savings for
individual investors and sending tremors through the crypto
market.
The list of major crypto firms that have filed for bankruptcy
protection in 2022 now includes Celsius Network, Three Arrows
Capital and Voyager Digital.
Celsius Network, LLC and its subsidiaries sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case
No. 22-10964) on July 14, 2022. In the petition filed by CEO Alex
Mashinsky, the Debtors estimated assets and liabilities between $1
billion and $10 billion.
The Debtors tapped Kirkland & Ellis, LLP and Kirkland & Ellis
International, LLP as bankrupty counsels; Fischer (FBC & Co.) as
special counsel; Centerview Partners, LLC as investment banker; and
Alvarez & Marsal North America, LLC as financial advisor.
Stretto is the claims agent and administrative advisor.
On July 27, 2022, the U.S. Trustee appointed an official committee
of unsecured creditors. The committee tapped White & Case, LLP as
its bankruptcy counsel; Elementus Inc. as its blockchain forensics
advisor; M3 Advisory Partners, LP as its financial advisor; and
Perella Weinberg Partners, LP as its investment banker.
Shoba Pillay, Esq., is the examiner appointed in the Debtors'
Chapter 11 cases. Jenner & Block, LLP and Huron Consulting
Services, LLC serve as the examiner's legal counsel and financial
advisor, respectively.
CENTRICFM SOLUTIONS: Case Summary & 11 Unsecured Creditors
----------------------------------------------------------
Debtor: CentricFM Solutions Inc.
118-35 Queens Blvd., Suite 400
Forest Hills, NY 11375
Chapter 11 Petition Date: June 20, 2023
Court: United States Bankruptcy Court
Eastern District of New York
Case No.: 23-72184
Judge: Hon. Louis A. Scarcella
Debtor's Counsel: Todd E. Duffy, Esq.
DUFFYAMEDEO LLP
132 West 31st Street
9th Floor
New York, NY 10001
Tel: (212) 729-5832
Email: tduffy@duffyamedeo.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Chip Zoegall as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 11 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/LL42VOI/CentricFM_Solutions_Inc__nyebke-23-72184__0001.0.pdf?mcid=tGE4TAMA
CHANJE ENERGY: Public Foreclosure Sale Set for June 26
------------------------------------------------------
A public foreclosure sale of Chanje Energy Inc. will take place on
June 26, 2023, at 1:00 p.m. (ET) Lewis Brisbois Bisgaard & Smith
LLP and via zoom by Mr. Alan CW Tang as receiver and manager, and
acting as agent and without personal liability for secured creditor
with $25 million debt. Interested parties may contact:
Rafael Zahralddin
Lewis Brisbois Bisgaard & Smith LLP
500 Delaware Avenue, Suite 700
Wilmington, DE 19801
Tel: (302) 985-6000
Fax: (302) 985-6001
Email: Rafael.Zahralddin@lewisbrisbois.com
Chanje Energy Inc. is an OEM delivering medium-duty electric
vehicles and turnkey energy infrastructure services for the last
mile industry.
CHURCHILL ORTHOPEDIC: Nancy Isaacson Named Subchapter V Trustee
---------------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed Nancy Isaacson,
Esq., at Greenbaum, Rowe, Smith & Davis, LP, as Subchapter V
trustee for Churchill Orthopedic Rehabilitation, LLC.
Ms. Isaacson will be paid an hourly fee of $410 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Isaacson declared that she is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Nancy Isaacson, Esq.
Greenbaum, Rowe, Smith & Davis, LP
75 Livingston Avenue
Roseland, NJ 08068
Phone: (973) 535-1600
Email: nisaacson@greenbaumlaw.com
About Churchill Orthopedic
Churchill Orthopedic Rehabilitation, LLC, a company in Teaneck,
N.J., filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. D.N.J. Case No. 23-14874) on June 5, 2023,
with as much as $50,000 in assets and $1 million to $10 million in
liabilities. Stephen Churchill, president, signed the petition.
Kenneth L. Baum, Esq., at the Law Offices of Kenneth L. Baum, LLC
is the Debtor's counsel.
CONGREGATION COFFEE: Leo Congeni Named Subchapter V Trustee
-----------------------------------------------------------
The Acting U.S. Trustee for Region 5 appointed Leo Congeni, Esq.,
at Congeni Law Firm, LLC, as Subchapter V trustee for Congregation
Coffee, LLC.
Mr. Congeni will be paid an hourly fee of $350 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Congeni declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Leo D. Congeni, Esq.
Congeni Law Firm, LLC
650 Poydras Street, Suite 2750
New Orleans, LA 70130
Telephone (504) 522-4848
Facsimile (504) 910-3055
Email: leo@congenilawfirm.com
About Congregation Coffee
Congregation Coffee, LLC filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. E.D. La. Case No.
23-10879) on June 6, 2023, with $100,001 to $500,000 in assets and
$500,001 to $1 million in liabilities. Judge Meredith S. Grabill
oversees the case.
The Debtor is represented by Stewart Peck, Esq., at Lugenbuhl
Wheaton Peck Rankin & Hubbard.
CSR WORLDWIDE: Stephen Moriarty Named Subchapter V Trustee
----------------------------------------------------------
The U.S. Trustee for Region 14 appointed Stephen Moriarty, Esq., at
Fellers, Snider, Blankenship, Bailey & Tippens, P.C., as Subchapter
V trustee for CSR Worldwide OK, Inc.
Mr. Moriarty will be paid an hourly fee of $500 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Moriarty declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Stephen J. Moriarty, Esq.
Fellers, Snider, Blankenship, Bailey & Tippens, P.C.
100 N. Broadway, Suite 1700
Oklahoma City, OK 73102
Telephone: (405) 232-0621
Facsimile: (405) 232-9659
Email: smoriarty@fellerssnider.com
About CSR Worldwide OK
CSR Worldwide OK, Inc. filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. E.D. Okla. Case No.
23-80391) on June 6, 2023, with $7,099,094 in assets and $7,130,915
in liabilities. CSR CEO Troy Don Burgess signed the petition.
Brown Law Firm, PC represents the Debtor as legal counsel.
CSR-OK REAL ESTATE: Stephen Moriarty Named Subchapter V Trustee
---------------------------------------------------------------
The U.S. Trustee for Region 14 appointed Stephen Moriarty, Esq., at
Fellers, Snider, Blankenship, Bailey & Tippens, P.C., as Subchapter
V trustee for CSR-OK Real Estate Holding Company, LLC.
Mr. Moriarty will be paid an hourly fee of $500 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Moriarty declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Stephen J. Moriarty, Esq.
Fellers, Snider, Blankenship, Bailey & Tippens, P.C.
100 N. Broadway, Suite 1700
Oklahoma City, OK 73102
Telephone: (405) 232-0621
Facsimile: (405) 232-9659
Email: smoriarty@fellerssnider.com
About CSR-OK Real Estate
CSR-OK Real Estate Holding Company, LLC, a company in Watts, Okla.,
filed a petition under Chapter 11, Subchapter V of the Bankruptcy
Code (Bankr. E.D. Okla. Case No. 23 80390) on June 6, 2023. In the
petition signed by its chief executive officer, Troy Don Burgess,
the Debtor disclosed $9,517,036 in assets and $12,767,298 in
liabilities.
Ron D. Brown, Esq., at Brown Law Firm, P.C. is the Debtor's
counsel.
DELCATH SYSTEMS: All Seven Proposals Passed at Annual Meeting
-------------------------------------------------------------
At the Annual Meeting, Delcath Systems, Inc.'s stockholders:
(1) elected Elizabeth Czerepak and John R. Sylvester to serve as
Class II directors on the Company's Board of Directors until the
Company's 2026 Annual Meeting of Stockholders or until his
successor has been duly elected and qualified;
(2) approved the amendment of the Company's Amended and Restated
Certificate of Incorporation to increase the total number of shares
of its Common Stock authorized for issuance from 40,000,000 shares
to 80,000,000 shares;
(3) approved the amendment to the Company's 2020 Omnibus Equity
Incentive Plan to increase by 2,650,000 the number of shares of
Common Stock available under thereunder;
(4) approved the potential issuance in excess of 19.99% of the
Company's outstanding Common Stock upon the conversion of the
Company's Series F-1 Convertible Preferred Stock, par value $0.01
per share, Series F-2 Convertible Preferred Stock, par value $0.01
per share, Series F-3 Convertible Preferred Stock, par value $0.01
per share and Series F-4 Convertible Preferred Stock, par value
$0.01 per share at less than the "minimum price" under Nasdaq
Listing Rule 5635, if required pursuant to the terms of the
Certificate of Designation of Preferences, Rights and Limitations
of Series F Convertible Voting Preferred Stock governing the Series
F Preferred Stock;
(5) ratified the selection by the Audit Committee of the Board
of Marcum, LLP as the Company's independent registered public
accounting firm for its fiscal year ending Dec. 31, 2023;
(6) approved a non-binding advisory vote on the compensation of
the Company's named executive officers; and
(7) approved a non-binding advisory vote on the preferred yearly
frequency of holding future advisory votes on compensation of
the Company's named executive officers.
In light of the vote of the stockholders on this proposal and
consistent with the Board's recommendation, the Company will
continue to include a non-binding stockholder advisory vote to
approve the compensation of its named executive officers in its
proxy materials every year. The Company will hold such annual
advisory votes until the next required vote on the frequency of
stockholder votes on named executive officer compensation. The
Company is required to hold votes on the frequency of holding
future non-binding advisory votes on executive compensation every
six calendar years.
About Delcath Systems
Headquartered in New York, NY, Delcath Systems, Inc. --
http://www.delcath.com-- is an interventional oncology company
focused on the treatment of primary and metastatic liver cancers.
The Company's lead product candidate, the HEPZATO KIT (melphalan
hydrochloride for injection/hepatic delivery system), is a
drug/device combination product. HEPZATO is designed to administer
high-dose chemotherapy to the liver while controlling systemic
exposure and associated side effects.
Delcath reported a net loss of $36.51 million for the year ended
Dec. 31, 2022, compared to a net loss of $25.65 million for the
year ended Dec. 31, 2021. As of March 31, 2023, the Company had
$30.60 million in total assets, $25.31 million in total
liabilities, $18.37 million in mezzanine equity, and a total
stockholders' deficit of $13.07 million.
New York, NY-based Marcum LLP, the Company's auditor since 2018,
issued a "going concern" qualification in its report dated March
27, 2023, citing that the Company has a significant working capital
deficiency, has incurred significant losses and needs to raise
additional funds to meet its obligations and sustain its
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
DESOLATION HOLDINGS: August 31 Claims Bar Date Set
--------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware set Aug. 31,
2023, at 12:00 midnight (Prevailing Eastern Time) as the last date
and time for each person or entity to file proofs of claims against
Desolation Holdings LLC, Bittrex Inc. and its debtor-affiliates.
The Court also set Nov. 4, 2023, at 12:00 midnight (Prevailing
Eastern Time), as the deadline for governmental units to file their
claims against the Debtors.
All proofs of claim must be filed so as to be received on or before
the applicable bar date by first class mail, overnight courier or
hand delivery:
Bittrex Inc. Claims Processing
c/o Omni Agent Solutions
5955 De Soto Avenue
Suite 100
Woodland Hills, CA 91367
Claims can also be filed electronically on the website located at
https://omniagentsolutions.com/BittrexCustomerClaim for customer
claims or https://omniagentsolutions.com/Bittrex-Claims for
non-customer claims.
About Desolation Holdings
Bittrex is a regulated digital assets exchange platform.
Desolation Holdings and three of its affiliates filed voluntary
petitions for relief under Chapter 11 of the Bankruptcy Code
(Bankr. D. Del. Lead Case No. 23-10597) on May 8, 2023. Desolation
Holdings' debtor-affiliates are Bittrex, Inc., Bittrex Malta
Holdings Ltd. and Bittrex Malta Ltd.
At the time of filing, the Debtors estimated consolidated assets of
$500 million to $1 billion in assets and $500 million to $1 billion
in liabilities.
The Hon. Brendan Linehan Shannon presides over the cases.
Quinn Emanuel Urquhart & Sullivan, LLP, led by partner Patricia B.
Tomasco, is the Debtors' counsel. Berkeley Research Group, LLC is
the Debtors' restructuring advisor. Omni Agent Solutions is the
claims agent.
DESTINED PROPERTIES: 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 Destined Properties,
LLC.
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 Destined Properties
Destined Properties, LLC, a company in Cedar City, Utah, filed a
petition under Chapter 11, Subchapter V of the Bankruptcy Code
(Bankr. D. Utah Case No. 23-22264) on May 31, 2023, with $1 million
to $10 million in both assets and liabilities. James L. Haslem,
authorized representative of the Debtor, signed the petition.
Judge William T. Thurman presides over the case.
Kirton McConkie, P.C. represents the Debtor as legal counsel.
DIAMOND SPORTS: Deadline to File Claims Set for July 17
-------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas set
July 17, 2023, at 5:00 p.m. (Prevailing Central Time) as the last
date and time for all persons and entities of Diamond Sports Group
LLC and its debtor-affiliates to file proofs of claim against the
Debtors.
The Court also set Sept. 11, 2023, at 5:00 p.m. (Prevailing Central
Time) as the deadline for governmental units to file their claims
against the Debtors.
Each proof of claim must be filed, including supporting
documentation, by either (1) electronic submission through PACER
(Public Access to Court Electronic Records at
https://ecf.txsb.uscourts.gov), (2) electronic submission using the
interface available on the claims and noticing agent's website at
https://cases.ra.kroll.com/DSG, or (3) if submitted through
non-electronic means, by U.S. mail or other hand delivery system,
so as to be actually received by the claims and noticing agent on
or before the claims bar date or the governmental bar date, or any
other applicable bar date, at:
a) if by first class mail:
Diamond Sports Group LLC Claims Processing Center
c/o Kroll Restructuring Administration LLC
Grand Central Station
PO Box 4850
New York, NY 10163-4850
b) if by hand delivery or overnight mail:
Diamond Sports Group LLC Claims Processing Center
c/o Kroll Restructuring Administration LLC
850 3rd Avenue, Suite 412
Brooklyn, NY 11232
Further information regarding the claims process or you wish to
obtain a copy of the bar date notice a proof of claim form or
related documents you may do so by: (1) calling the Debtors'
restructuring hotline at (877) 720-6635 (Toll Free U.S.) or (646)
440-4763 (Non-U.S. Parties); and (2) visiting the Debtors'
restructuring website at https://cases.ra.kroll.com/DSG.
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.
DONNELLY HOLDINGS: Obtains Initial Stay Order Under CCAA
--------------------------------------------------------
The Supreme Court of British Columbia granted an order ("initial
order") to Donnelly Holdings Ltd. and its affiliates under the
Companies' Creditors Arrangement Act, and appointed Ernst & Young
Inc. as monitor.
According to court documents, the companies were severely impacted
by the public-health mandated business closures that occurred
during the COVID-19 pandemic, which necessitated that the companies
obtain materials unanticipated borrowings to meet their ongoing
obligations. In particular, the companies obtained financing,
including from government support programs such as the business
credit availability program, the highly affected sectors creditor
availability program and the Canadian emergency business account.
Since the pandemic, the companies have been impacted by a number of
factors including:
a) materially high interest rates on their borrowings facilities
which are linked to the prime rate and have increased from
approximately 4.25% a year ago to 9.25% today; and
b) rising costs due to inflation and regulatory changes.
While the companies' revenues have since recovered to near 2019
levels, compression of their margins has persisted and despite
restructuring efforts and forbearance negotiations with the Bank of
Montreal, the companies are now unable to service the costs of
their primary indebtedness and are vulnerable to demand.
Court materials filed in these proceedings are available at the
Monitor's website at https://www.ey.com/ca/DPH.
The Monitor can be reached at:
Ernst & Young Inc.
The Stack, Suite 1900
1133 Melville Street
Vancouver, BC V6E 4E5
Mike Bell
Email: mike.bell@parthenon.ey.com
Tel: 604-899-3566
Jason Eckford
Email: jason.eckford@parthenon.ey.com
Tel: 604-648-3671
Kaleb Dekker
Email: kaleb.dekker@parthenon.ey.com
Counsel for Ernst & Young Inc.:
Fasken Martineau DuMoulin LLP
550 Burrard Street, Suite 2900
Vancouver, BC V6C 0A3
Kibben Jackson
Email: kjackson@fasken.com
Tel: 604-631-4786
Glen Nesbitt
Email: gnesbitt@fasken.com
Tel: 604-631-4833
Suzanne Volkow
Email: svolkow@fasken.com
Ashley Kumar
Email: akumar@fasken.com
Counsel for Donnelly Holdings Ltd.:
Farris LLP
25th Floor - 700 West Georgia Street
Vancouver, BC V7Y 1B3
Tevia Jeffries
Email: tjeffries@farris.com
Tel: 604-661-2174
Tim Louman-Gardiner
Email: tlouman-gardiner@farris.com
Tel: 604-661-1729
Rebecca Morse
Email: rmorse@farris.com
Tel: 604-661-1712
Laura Ferguson
Email: lferguson@farris.com
Sarah Macallister
Email: smacallister@farris.com
Daxton Boere
Email: dboere@farris.com
Sandy Lun
Email: slun@farris.com
Counsel for The Bank of Montreal:
Lawson Lundell LLP
Cathedral Place, Suite 1600
925 West Georgia Street
Vancouver, BC V6C 3L2
William L. Roberts
Email: wroberts@lawsonlundell.com
Tel: 604-631-9163
Alexis Teasdale
Email: ateasdale@lawsonlundell.com
Noor Mann
Email: nmann@lawsonlundell.com
Donnelly Holdings Ltd. operates restaurants, bars, and nightclubs
in Vancouver, British Columbia, and Toronto.
EKSO BIONICS: Amends Offering Agreement With H.C. Wainwright
------------------------------------------------------------
Ekso Bionics Holdings, Inc. entered into an amendment to that
certain At the Market Offering Agreement dated as of Oct. 9, 2020,
by and between the Company and H.C. Wainwright & Co., LLC, pursuant
to which the Company may offer and sell, from time to time, through
the Agent, shares of the Company's common stock, par value $0.001
per share, in an "at-the-market" offering.
The Amendment amends the Sales Agreement to remove the $6.75 per
share floor sales price. The Sales Agreement is otherwise
unchanged. To date, the Company has issued and sold 77,594 Shares
at an average price per share of $10.72 for approximate proceeds of
$791,217, net of commission and expenses, and $6,668,332 remains
available for future offerings under the prospectus supplement
filed with respect to the Sales Agreement.
About Ekso Bionics
Ekso Bionics Holdings, Inc. -- http://www.eksobionics.com--
designs, develops, and markets exoskeleton products that augment
human strength, endurance and mobility. Its exoskeleton technology
serves multiple markets and can be utilized both by able-bodied
persons and persons with physical disabilities.
Ekso Bionics reported a net loss of $15.08 million in 2022, a net
loss of $9.76 million in 2021, a net loss of $15.83 million in
2020, a net loss of $12.13 million in 2019, and a net loss of
$26.99 million in 2018. As of March 31, 2023, the Company had
$37.10 million in total assets, $15.82 million in total
liabilities, and $21.28 million in total stockholders' equity.
ENDO INTERNATIONAL: Seeks to Extend Plan Exclusivity to October 10
------------------------------------------------------------------
Endo International plc and its affiliates ask the U.S. Bankruptcy
Court for the Southern District of New York to extend their
exclusive periods within which to file a Chapter 11 plan and to
solicit acceptances thereof to October 10 and December 9, 2023,
respectively.
The Debtors explained that the complexity of the Chapter 11 cases
is further compounded by the numerous parties that are involved in
these cases, all with differing, and oftentimes competing,
interests. The Debtors submit that the size and complexity of the
Chapter 11 Cases, standing alone, warrants extending the exclusive
periods. The Debtors also have significant unresolved contingences
in these Chapter 11 Cases. Importantly, until the outcome of the
sale process is clear, the Debtors cannot finalize their chapter 11
emergence strategy, which may include the prosecution of a chapter
11 plan. Granting the requested extensions of the exclusive periods
will enable the Debtors to focus on the current path and avoid the
distraction of ill-formed competing plans.
This is the Debtors' second request to extend the exclusive
periods. Notwithstanding the substantial progress made to date,
given the size and complexity of these Chapter 11 Cases, additional
time is necessary for the Debtors to complete their sale process
and formulate a strategy to exit these Chapter 11 Cases.
The Debtors are represented by:
Paul D. Leake, Esq.
Lisa Laukitis, Esq.
Shana A. Elberg, Esq.
Evan A. Hill, Esq.
SKADDEN, ARPS, SLATE, MEAGHER & FLOM LLP
One Manhattan West
New York, NY 10001
Telephone: (212) 735-3000
Facsimile: (212) 735-2000
About Endo International
Endo International plc is a generics and branded pharmaceutical
company. It develops, manufactures, and sells branded and generic
products to customers in a wide range of medical fields, including
endocrinology, orthopedics, urology, oncology, neurology, and other
specialty areas. On the Web: http://www.endo.com/
On Aug. 16, 2022, Endo International and certain of its
subsidiaries initiated voluntary prearranged Chapter 11 proceedings
(Bankr. S.D.N.Y. Lead Case No. 22-22549). The cases are pending
before Judge James L. Garrity, Jr.
The Debtors tapped Skadden, Arps, Slate, Meagher & Flom, LLP as
legal counsel; PJT Partners, LP as investment banker; and Alvarez &
Marsal North America, LLC as financial advisor. Kroll
Restructuring Administration, LLC is the claims agent and
administrative advisor. A Web site dedicated to the restructuring
is at http://www.endotomorrow.com/
Roger Frankel, the legal representative for future claimants in the
Chapter 11 cases, tapped Frankel Wyron LLP and Young Conaway
Stargatt & Taylor, LLP as legal counsels, and Ducera Partners, LLC
as investment banker.
The U.S. Trustee for Region 2 appointed an official committee of
unsecured creditors on Sept. 2, 2022. The committee tapped Kramer
Levin Naftalis & Frankel as legal counsel; Lazard Freres & Co. LLC
as investment banker; and Dundon Advisers, LLC and Berkeley
Research Group, LLC as financial advisors.
Meanwhile, the official committee representing the Debtors' opioid
claimants tapped Cooley, LLP as bankruptcy counsel; Akin Gump
Strauss Hauer & Feld, LLP as special counsel; Province, LLC as
financial advisor; and Jefferies, LLC as investment banker.
David M. Klauder, Esq., the court-appointed fee examiner, is
represented by Bielli & Klauder, LLC.
ENDO PARENT $156M Bank Debt Trades at 23% Discount
--------------------------------------------------
Participations in a syndicated loan under which Endo Parent Inc is
a borrower were trading in the secondary market around 77.5
cents-on-the-dollar during the week ended Friday, June 16, 2023,
according to Bloomberg's Evaluated Pricing service data.
The $156.3 million facility is a Term loan that is scheduled to
mature on August 18, 2023. The amount is fully drawn and
outstanding.
Endo Parent, Inc. operates healthcare facilities.
EVANGELICAL RETIREMENT: Friendship Village Files for Chapter 11
---------------------------------------------------------------
Alby Gallun of Crain's Chicago Business reports that the largest
nonprofit retirement community in Illinois, Friendship Village of
Schaumburg, has filed for bankruptcy protection, unable to recover
from the devastating blow of the COVID-19 pandemic.
Friendship Village, an 815-unit facility near Schaumburg and
Roselle roads, has defaulted on more than $125 million in debt and
filed a Chapter 11 petition after an unsuccessful effort to find a
buyer, according to documents filed today in U.S. Bankruptcy Court
in Chicago. The nonprofit facility, which continues to operate,
aims to have better luck seeking a buyer through a court-supervised
sale process.
"We expect no changes in day-to-day life in our community due to
this process," Friendship Village President and CEO Michael Flynn
said in a statement. "People who wish to join our vibrant lifestyle
and true tradition of life care can still do so during this time of
restructuring."
Friendship Village is a continuing care retirement community, with
independent living, assisted-living and a nursing home all in the
same property. Residents can move in when they' re active and
healthy, knowing they'll have the help they need as their health
declines and they move into assisted living and eventually, the
property's nursing facility.
Built in 1977, the Schaumburg facility was the largest nonprofit
senior living community in Illinois at the end of 2021 and the
24th-largest in the country, according to a report from B.C.
Ziegler, an investment bank, and LeadingEdge, a research and
advocacy group.
Like other retirement communities, Friendship Village relies
heavily on revenues from entrance fees, one-time refundable
payments that residents make when they move in. Typically, the
property's entrance fee sales total eight to 10 units a month,
according to the statement. But sales plunged during the pandemic,
impairing the facility's ability to make debt payments.
"Without the ability to tour prospects for nearly a year, occupancy
dropped significantly, leaving Friendship Village with the
financial hardships that are being resolved through this debt
restructuring process," the statement said.
Starting in March 2022, Friendship Village hired Ziegler and then a
broker of senior living properties to find a buyer for the
facility, according to a bankruptcy filing. Though a buyer emerged,
it informed Friendship Village representatives that it would prefer
to buy the facility out of bankruptcy. Friendship Village aims to
hold an auction on October 3, 2023 and to complete a sale in
December, according to the filing.
Including unpaid interest, Friendship Village owes $131 million to
investors that own bonds used to finance the property.
About Evangelical Retirement Homes of Greater Chicago
Friendship Village of Schaumburg is the largest nonprofit
retirement community in Illinois.
Friendship Village is an 815-unit facility near Schaumburg and
Roselle roads, in Schaumburg, Illinois 60194 .
Evangelical Retirement Homes of Greater Chicago, d/b/a Friendship
Village of Schaumburg, sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 23-07541) on June
9, 2023. In the petition signed by Michael Flynn, chief executive
officer, the Debtor disclosed up to $50 million in assets and up to
$500 million in liabilities.
Bruce C. Dopke, Esq., at Dopkelaw LLC, is the Debtor's legal
counsel.
EVERYTHING BLOCKCHAIN: Posts $1.8 Million Net Loss in First Quarter
-------------------------------------------------------------------
Everything Blockchain, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $1.82 million on $262,000 of revenue for the three months ended
April 30, 2023, compared to a net loss of $1.45 million on $255,000
of revenue for the three months ended April 30, 2022.
As of April 30, 2023, the Company had $24.92 million in total
assets, $2.45 million in total liabilities, and $22.47 million in
total stockholders' equity.
Everything Blockchain said, "The Company has had historically
negative cash flow and net losses. Though the year ended January
31, 2022 resulted in positive cash flow and net income, there are
no assurances the Company will generate a profit or obtain positive
cash flow in the future. The Company has sustained its solvency
through the support of its shareholder and chairman, Michael
Hawkins, or companies controlled by Michael Hawkins, which raise
substantial doubt about its ability to continue as a going
concern.
"Management is taking steps to raise additional funds to address
its operating and financial cash requirements to continue
operations in the next twelve months. Management has devoted a
significant amount of time to the raising of capital from
additional debt and equity financing. However, the Company's
ability to continue as a going concern is dependent upon raising
additional funds through debt and equity financing and generating
revenue. There are no assurances the Company will receive the
funding or generate the revenue necessary to fund operations. The
financial statements contain no adjustments for the outcome of this
uncertainty."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1730869/000147793223004564/ebi_10q.htm
About Everything Blockchain
Headquartered in Fleming Island, Florida, Everything Blockchain,
Inc. (fka OBITX, Inc.) is primarily engaged in the business of
consulting and developing blockchain and cybersecurity related
solutions. Everything Blockchain is a technology company that is
blending blockchain, zero-trust, and database management technology
to create a platform to solve real world, practical business
problems.
Mitzpe Netofa, Israel-based Elkana Amitai CPA, the Company's
auditor since 2022, issued a "going concern" qualification in its
report dated May 1, 2023, citing that the Company suffered losses
from operations in all years since inception, except for the year
ended Jan. 31, 2022. These and other factors raise substantial
doubt about the Company's ability to continue as a going concern.
FINESSE AESTHETICS: Jerrett McConnell Named Subchapter V Trustee
----------------------------------------------------------------
The U.S. Trustee for Region 21 appointed Jerrett McConnell, Esq.,
at McConnell Law Group, PA, as Subchapter V trustee for Finesse
Aesthetics, LLC.
Mr. McConnell will be paid an hourly fee of $350 for his services
as Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. McConnell declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Jerrett M. McConnell, Esq.
McConnell Law Group, PA
6100 Greenland Road, Unit 603
Jacksonville, Florida 32258
Phone: (904) 570-9180
Email: trustee@mcconnelllawgroup.com
About Finesse Aesthetics
Finesse Aesthetics, LLC filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. M.D. Fla. Case No.
23-02203) on June 5, 2023, with as much as $50,000 in assets and
$500,001 to $1 million in liabilities. Judge Lori V. Vaughan
oversees the case.
The Debtor is represented by Owei Z. Belleh, Esq., at The Beller
Law Group, PLLC.
FOREST CITY: $1.24B Bank Debt Trades at 25% Discount
----------------------------------------------------
Participations in a syndicated loan under which Forest City
Enterprises LP is a borrower were trading in the secondary market
around 74.9 cents-on-the-dollar during the week ended Friday, June
16, 2023, according to Bloomberg's Evaluated Pricing service data.
The $1.24 billion facility is a Term loan that is scheduled to
mature on December 7, 2025. About $890.0 million of the loan is
withdrawn and outstanding.
Forest City Enterprises, L.P. provides real estate services. The
Company develops, owns, acquires, and manages real estate
properties. Forest City Enterprises serves regional malls, retail
centers, office buildings, campuses, multi-family properties, and
residential communities in the United States.
FREE SPEECH: Creditors Accuse Jones Affiliate of Ducking Discovery
------------------------------------------------------------------
The official committee of unsecured creditors in the Chapter 11
case of Infowars host Alex Jones has asked a Texas bankruptcy judge
to deny a motion to protect a company from repeated discovery
requests because it is allegedly providing the bankruptcy estate
with a "substantial source of income."
The Official Committee of Unsecured Creditors filed an objection to
the emergency motion for protection by Elevated Solutions Group,
LLC ("ESG") and countermotion to compel ESG to comply with
discovery duly propounded by the Committee in connection with the
Chapter 11 Case.
According to the Committee, ESG -- an entity formed in connection
with and intimately bound up with the business of Alex Jones --
seeks to avoid any examination at all by the Committee despite its
deep connections to the Chapter 11 Case. ESG has been associated
with numerous mature and inchoate business arrangements involving
Jones and has been the middleman for substantial revenue. ESG is,
and/or has recently been, party to multiple business arrangements
with the Debtor and with his company, Free Speech Systems, LLC
("FSS"). ESG has also been specifically identified by estate
professionals as a substantial source of income for the Jones
estate.
The Debtor has recently moved to reject two contracts with ESG,
although the effect and consequences of such rejection remains
unclear and the fate of numerous business arrangements involving
ESG is likewise unclear. The Committee opposed the Rejection
Motion given the unanswered questions, red flags, and large
potential financial consequences for the estate, and sought
necessary discovery. During the initial meet and confer concerning
the Committee's discovery, ESG argued that discovery related to the
Rejection Motion should relate to only the two contracts
specifically identified in the Debtor's Rejection Motion; the
Committee disagreed but, in an effort to reach compromise, agreed
to serve requests concerning any business arrangements not
specifically identified in the Rejection Motion under Rule 2004 of
the Federal Rules of Bankruptcy Procedure and promptly did so under
a timeframe agreed between the parties.
Unfortunately, since that initial meet and confer conversation, ESG
has failed to produce documents to the Committee on the requested
date and even refused to respond to the Committee regarding
discovery requests whatsoever. Instead of engaging constructively,
ESG simply filed the Motion and attempted to evade any inquiry by
the Committee. The Committee's numerous requests for a discovery
conference have gone unanswered.
ESG's refusal to meet and confer with the Committee should be a
basis, alone, to reject the sweeping relief sought by the Motion.
Even setting aside ESG’s conduct in discovery, however, its
Motion must also be rejected because ESG fails to raise a single
valid basis to curtail, let alone foreclose, discovery.
The Committee thereforeasks the Court to deny the Motion in its
entirety, and enter an order that compels ESG to comply with
discovery in the Chapter 11 Case. Absent the Court requiring ESG
to comply with its discovery obligations, the Committee will be
unable to properly evaluate whether to further oppose the Debtor's
Rejection Motion and properly execute its fiduciary duties of
investigation with respect to the Debtor and his business
activities
About Free Speech Systems
Free Speech Systems LLC is a broadcast media production and
distribution company that provides broadcasting aural programs by
radio to the public. Free Speech Systems is a family-run business
founded by Alex Jones.
FSS is presently engaged in the business of producing and
syndicating Jones' radio and video talk shows and selling products
targeted to Jones' loyal fan base via the Internet. Today, FSS
produces Alex Jones' syndicated news/talk show (The Alex Jones
Show) from Austin, Texas, which airs via the Genesis Communications
Network on over 100 radio stations across the United States and via
the internet through websites including Infowars.com.
Due to the content of Alex Jones' shows, Jones and FSS have faced
an all-out ban of Infowars from mainstream online spaces. Shunning
from financial institutions and banning Jones and FSS from major
tech companies began in 2018.
Conspiracy theorist Alex Jones has been sued by victims' family
members over Jones' lies that the 2012 Sandy Hook Elementary School
shooting was a hoax.
Jones' InfoW LLC and affiliates, IWHealth, LLC and Prison Planet
TV, LLC, filed petitions under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. S.D. Texas Lead Case No. 22-60020) on April
18, 2022.
The Debtors agreed to the dismissal of the Chapter 11 cases in June
2022 after the Sandy Hook victim families dismissed the three
bankrupt companies from their lawsuits.
Free Speech Systems filed a voluntary petition for relief under
Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex.
Case No. 22-60043) on July 29, 2022. In the petition filed by W.
Marc Schwartz, as chief restructuring officer, the Debtor reported
assets and liabilities between $50 million and $100 million.
Melissa A Haselden has been appointed as Subchapter V trustee.
Alexander E. Jones filed for personal bankruptcy under Chapter 11
of the Bankruptcy Code (Bankr. S.D. Tex. Case No. 4:22-bk-60043) on
Dec. 2, 2022, listing $1 million to $10 million in assets against
liabilities of $1 billion to $10 billion in liabilities.
Raymond William Battaglia, of Law Offices of Ray Battaglia, PLLC,
is FSS's counsel. Raymond W. Battaglia and Crowe & Dunlevy, P.C.,
led by Vickie L. Driver, Christina W. Stephenson, Shelby A. Jordan,
and Antonio Ortiz are representing Alex Jones.
FTX TRADING: Bahamian Court to Review SBF's New U.S. Charges
------------------------------------------------------------
Ava Benny-Morrison of Bloomberg Law reports that Sam Bankman-Fried
won a Bahamian court order temporarily blocking that nation's
government from consenting to charges that were added to his US
indictment after the FTX co-founder's December extradition to New
York.
Bankman-Fried has argued in Manhattan federal court that bribery,
campaign finance and other counts added in March and February 2023
must be dismissed because they were not included in his agreement
to return from the Bahamas to face US charges. New York federal
prosecutors have said they can proceed with the new charges with
the Bahamian attorney general's consent, but Bankman-Fried moved to
block that with a separate action.
About FTX Group
FTX is the world's second-largest cryptocurrency firm. FTX is a
cryptocurrency exchange built by traders, for traders. FTX offers
innovative products including industry-first derivatives, options,
volatility products and leveraged tokens.
Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that
FTX paused customer withdrawals after it was hit with roughly $5
billion worth of withdrawal requests.
Faced with liquidity issues, FTX on Nov. 9 struck a deal to sell
itself to its giant rival Binance, but Binance walked away from the
deal amid reports on FTX regarding mishandled customer funds and
alleged US agency investigations.
At 4:30 a.m. on Nov. 11, Bankman-Fried ultimately agreed to step
aside, and restructuring vet John J. Ray III was quickly named new
CEO.
FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc.
(d/b/a FTX US), Alameda Research Ltd. and certain affiliated
companies then commenced Chapter 11 proceedings (Bankr. D. Del.
Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022.
Additional entities sought Chapter 11 protection on Nov. 14, 2022.
FTX Trading and its affiliates each listed $10 billion to $50
million in assets and liabilities, making FTX the biggest
bankruptcy filer in the US this year. According to Reuters, SBF
shared a document with investors on Nov. 10, 2022, showing FTX had
$13.86 billion in liabilities and $14.6 billion in assets. However,
only $900 million of those assets were liquid, leading to the cash
crunch that ended with the company filing for bankruptcy.
The Hon. John T. Dorsey is the case judge.
The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel;
Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal
North America, LLC as financial advisor. Kroll is the claims agent,
maintaining the page https://cases.ra.kroll.com/FTX/Home-Index
The Official Committee of Unsecured Creditors tapped Paul Hastings
as counsel, FTI Consulting, Inc., as financial advisor, and
Jefferies LLC as the investment banker. Young Conaway Stargatt &
Taylor LLP is the Committee's Delaware and conflicts counsel.
Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory
T. Donilon, Edward L. Schnitzer, and David M. Banker, is
representing Sam Bankman-Fried in the Chapter 11 cases.
White-collar crime specialist Mark S. Cohen has reportedly been
hired to represent SBF in litigation. Lawyers at Paul Weiss
previously represented SBF but later renounced representing the
entrepreneur due to a conflict of interest.
FTX TRADING: Bankruptcy Court Won't Reveal Customer Names
---------------------------------------------------------
Dietrich Knauth of Reuters reports that bankrupt crypto exchange
FTX received court permission on June 9, 2023, to remove customer
names from all filings in its bankruptcy case, persuading a U.S.
judge that publishing the names would put people at risk of scams
and identity theft.
U.S. Bankruptcy Judge John Dorsey in Wilmington, Delaware, ruled
that FTX can permanently redact the names of individual customers
from its bankruptcy filings, after hearing testimony that
publishing customers' names would place them at risk even if other
identifying information like their email address was kept secret.
"It is the customers who are the most important issue in this
case," Dorsey said. "We want to make sure that they are protected
and they don't fall victim to any types of scams."
In January 2023, Dorsey had allowed FTX to keep secret the names of
9 million of its individual customers for three months.
On Friday, June 9, 2023, Dorsey also authorized FTX to remove the
names of companies and institutional investors from its customer
lists on a temporary basis, saying FTX will have to make a new
request in 90 days. Dorsey said those customers do not face the
same risks as individuals, but their names could be valuable
property if FTX decides to sell its crypto exchange business as a
whole or sell its customer list separately.
Dorsey also addressed a longstanding dispute between FTX's U.S.
bankruptcy team and liquidators overseeing the wind-down of FTX's
Bahamian affiliate FTX Digital Markets, ordering the two sides to
find a mediator and try to avoid inconsistent rulings in the
separate court proceedings in the U.S. and Bahamas.
Dorsey denied the Bahamian liquidators' request to begin litigation
in Bahamas courts over assets held by the U.S. debtors. The judge
said on Thursday that he would not defer to a Bahamian court's
ruling on which FTX company should control assets and take up
responsibility for repaying customers, and he said on Friday that
he would not expect a Bahamian court to follow his orders, either.
The whole situation cries out for more cooperation, Dorsey said,
adding that he had been "lying in bed at 3 a.m. trying to figure
out what to do with this mess."
The Bahamian insolvency case began one day before FTX Trading and
more than 100 affiliates in November filed for bankruptcy
protection in Delaware to address claims that the company misused
and lost billions of dollars worth of customers' crypto deposits.
FTX founder Sam Bankman-Fried and several company insiders have
been indicted on fraud charges for their role in the company's
collapse. Bankman-Fried is fighting the charges. Several other
insiders have pleaded guilty and agreed to cooperate with
prosecutors.
About FTX Group
FTX is the world's second-largest cryptocurrency firm. FTX is a
cryptocurrency exchange built by traders, for traders. FTX offers
innovative products including industry-first derivatives, options,
volatility products and leveraged tokens.
Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that
FTX paused customer withdrawals after it was hit with roughly $5
billion worth of withdrawal requests.
Faced with liquidity issues, FTX on Nov. 9 struck a deal to sell
itself to its giant rival Binance, but Binance walked away from the
deal amid reports on FTX regarding mishandled customer funds and
alleged US agency investigations.
At 4:30 a.m. on Nov. 11, Bankman-Fried ultimately agreed to step
aside, and restructuring vet John J. Ray III was quickly named new
CEO.
FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc.
(d/b/a FTX US), Alameda Research Ltd. and certain affiliated
companies then commenced Chapter 11 proceedings (Bankr. D. Del.
Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022.
Additional entities sought Chapter 11 protection on Nov. 14, 2022.
FTX Trading and its affiliates each listed $10 billion to $50
million in assets and liabilities, making FTX the biggest
bankruptcy filer in the US this year. According to Reuters, SBF
shared a document with investors on Nov. 10, 2022, showing FTX had
$13.86 billion in liabilities and $14.6 billion in assets. However,
only $900 million of those assets were liquid, leading to the cash
crunch that ended with the company filing for bankruptcy.
The Hon. John T. Dorsey is the case judge.
The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel;
Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal
North America, LLC as financial advisor. Kroll is the claims agent,
maintaining the page https://cases.ra.kroll.com/FTX/Home-Index
The Official Committee of Unsecured Creditors tapped Paul Hastings
as counsel, FTI Consulting, Inc., as financial advisor, and
Jefferies LLC as the investment banker. Young Conaway Stargatt &
Taylor LLP is the Committee's Delaware and conflicts counsel.
Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory
T. Donilon, Edward L. Schnitzer, and David M. Banker, is
representing Sam Bankman-Fried in the Chapter 11 cases.
White-collar crime specialist Mark S. Cohen has reportedly been
hired to represent SBF in litigation. Lawyers at Paul Weiss
previously represented SBF but later renounced representing the
entrepreneur due to a conflict of interest.
FTX TRADING: Delaware Judge Urges Mediation on Bahamas' Claims
--------------------------------------------------------------
Jeff Montgomery and Rick Archer of Law360 report that a U.S.
bankruptcy judge in Delaware refused to unblock Bahamian joint
provisional liquidators from pursuing core asset claims in the
collapse of bankrupt cryptocurrency giant FTX Trading Ltd., calling
instead Friday, June 9, 2023, for mediation on disputes over FTX
insolvency issues straddling the two jurisdictions.
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.
GARCIA GRAIN: Plan Exclusivity Period Extended to September 18
--------------------------------------------------------------
The Hon. Eduardo V. Rodriguez of the U.S. Bankruptcy Court for the
Southern District of Texas extended Garcia Grain Trading Corp.'s
exclusive period within which to file a plan of reorganization and
disclosure statement to September 18, 2023.
Absent the extension, the deadline for the Debtor to file its plan
was June 17, 2023.
The Debtor explained that the case is an extremely complicated one
involving millions of dollars of grain, edible beans and
sunflowers, along with real estate assets totaling more than $25
million and indebtedness totaling more than $50 million. The Debtor
is in negotiations with secured creditors to arrange for financing
to allow operations with Elkins Grain to provide it a share of the
net profits from the storage and marketing of the grain. The Debtor
has commenced an adversary proceeding to recover property for the
estate having an estimated value of $1.5 million. The request for
an extension of the exclusivity period is not made to pressure any
creditors into acceptance of any proposal from the Debtor. Rather,
it is made to facilitate the reorganization process.
The Debtor is represented by:
David R. Langston, Esq.
MULLIN HOARD & BROWN, L.L.P.
P.O. Box 2585
Lubbock, TX 79408-2585
Telephone: (806) 765-7491
Facsimile: (806) 765-0553
E-mail: drl@mhba.com
About Garcia Grain Trading Corp.
Garcia Grain Trading Corp.'s line of business includes buying or
marketing grain, dry beans, soybeans, and inedible beans. Garcia
Grain sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. S.D. Tex. Case No. 23-70028) on Feb. 17, 2023. In the
petition signed by Octavio Garcia, its CEO and president, the
Debtor disclosed up to $50 million in both assets and liabilities.
Judge Eduardo V. Rodriguez oversees the case.
David R. Langston, Esq., at Mullin Hoard & Brown, LLP, represents
the Debtor as legal counsel.
GENESIS CARE: U.S. Trustee Appoints Creditors' Committee
--------------------------------------------------------
The U.S. Trustee for Region 7 appointed an official committee to
represent unsecured creditors in the Chapter 11 cases of Genesis
Care Pty Limited and its affiliates.
The committee members are:
1. Accuray Incorporated
Attn: Jesse Chew, Chief Legal Officer
1310 Chesapeake Terrace
Sunnyvale, CA 94089
Email: jchew@accuray.com
2. ASD Specialty Healthcare, LLC
Attn: Melissa Martinez
1 West First Avenue
Conshohocken, PA 19461
Email: Melissa.martinez2@amerisourcebergen.com
3. Block Imaging Parts & Service, LLC
Attn: Adam Desjardins, General Counsel
1845 Cedar St.
Holt, MI 48842
Email: Adam.desjardins@blockimaging.com
4. Elekta
Attn: Daniel Ballura
400 Perimeter Center Terrace, Ste. 50
Atlanta, GA 30346
Daniel.ballura@elekta.com
5. Cardinal Health 414, LLC
Attn: Michael Anderson, Credit Manager
Robyn O’Neil, Credit Manager
7000 Cardinal Place
Dublin, OH 43017
Michael.anderson06@cardinalhealth.com
Email: Robyn.oneil@cardinalhealth.com
6. Centrex Revenue Solutions
501 South Flagler Driver, Suite 600
West Palm Beach, FL 33401
Email: Joshua.marks@integraconnect.com
7. Boston Scientific Corporation
300 Boston Scientific Way
Marlborough, MA 01752
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About GenesisCare
One of the world's largest integrated oncology networks,
GenesisCare -- http://www.genesiscare.com-- includes 300+
locations in the U.S., the UK, Australia, and Spain. With
investments in advanced technology and expanded access to clinical
trials, more than 5,500 highly trained GenesisCare physicians and
support staff offer comprehensive, coordinated care in radiation
oncology, medical oncology, hematology, urology, diagnostics, and
surgical oncology.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 23-90614) on June
1, 2023. In the petition signed by Richard Briggs, as authorized
signatory, the Debtor disclosed up to $10 billion in both assets
and liabilities.
Judge David R. Jones oversees the case.
The Debtors tapped Kirkland and Ellis, LLP, Kirkland and Ellis
International, LLP and Jackson Walker, LLP as general bankruptcy
counsels; PJT Partners, LP as investment banker; Alvarez and Marsal
North America, LLC as restructuring advisor; Herbert Smith
Freehills, LLP as foreign legal counsel; and Teneo as
communications advisor. Kroll Restructuring Administration, LLC is
the notice and claims agent.
GIRARDI & KEESE: Erika Aims to Settle $15M Suit in Tom's Bankruptcy
-------------------------------------------------------------------
Jonah Wardell of Reality Tea reports that Erika Jayne is moving
toward settling one of the bankruptcy cases involving husband Tom
Girardi, and getting that much closer to a divorce from Tom
Girardi. According to court documents obtained by Radar Online,
Erika and trustees from Tom's company are in talks to resolve the
case.
The parties asked the court to push the next hearing from June 6 to
August 8. This should provide ample time to settle. Erika still
denies any wrongdoing on her own part and is only involved in all
of this because the money was spent on her.
As Erika’s lawyer said, "Ms. Girardi at all times was and is an
entertainer with a 12th-grade education. Ms. Girardi was never and
is not an attorney, and she trusted that GK, Mr. Girardi, and the
outside accountants, given their superior knowledge and expertise,
prepared proper, lawful, and legitimate tax returns."
About Girardi & Keese
Girardi and Keese or Girardi & Keese was a Los Angeles-based law
firm founded in 1965 by lawyers Thomas Girardi and Robert Keese.
It served clients in California in a variety of legal areas. It
was known for representing plaintiffs against major corporations.
An involuntary Chapter 7 petition (Bankr. C.D. Cal. Case No.
20-21022) was filed in December 2020 against GIRARDI KEESE by
alleged creditors Jill O'Callahan, Robert M. Keese, John Abassian,
Erika Saldana, Virginia Antonio, and Kimberly Archie.
The petitioners' attorneys:
Andrew Goodman
Goodman Law Offices, Apc
Tel: 818-802-5044
E-mail: agoodman@andyglaw.com
Elissa D. Miller, a member of the firm SulmeyerKupetz, has been
appointed as Chapter 7 trustee for GIRARDI KEESE. The Chapter 7
trustee can be reached at:
Elissa D. Miller
333 South Grand Ave., Suite 3400
Los Angeles, California 90071-1406
Telephone: (213) 626-2311
Facsimile: (213) 629-4520
E-mail: emiller@sulmeyerlaw.com
An involuntary Chapter 7 petition was also filed against Thomas
Vincent Girardi (Case No. 20-21020) on Dec. 18, 2020. The Chapter 7
trustee can be reached at:
Jason M. Rund
Email: trustee@srlawyers.com
840 Apollo Street, Suite 351
El Segundo, CA 90245
GIRARDI & KEESE: Tom Competent to Face Trial
--------------------------------------------
The New York Post reports that disgraced attorney Tom Girardi is
mentally fit to face trial on embezzlement charges despite his
Alzheimer's diagnosis, according to a court-appointed
psychologist.
The former high-powered Los Angeles attorney, best known for
appearing on the "The Real Housewives of Beverly Hills" with his
estranged wife Erika Jayne, will face a federal judge on Aug. 3.
Neuropsychologist Dr. Diana Goldstein "has concluded her
examination and opined, among other things, that defendant is
competent to stand trial," according to court documents viewed by
City News Service.
Girardi, 83, who ran the now defunct law firm Girardi Keese, was
indicted in February on five counts of wire fraud. Federal
prosecutors allege the 83-year old lied to his clients and bilked
them out of more than $15 million from 2010 to 2020.
Girardi Keese former financial chief officer, Christopher Kamon,
49, faces similar charges and both men face a prison sentence of up
to 20 years.
Authorities allege Girardi and Kamon used their clients’
settlement money to fund payroll, bankroll personal expenses and
pay other clients’ settlements that they had already
misappropriated.
"In doing so, they allegedly preyed on the very people who trusted
and relied upon them the most-- their clients," said US Attorney
Martin Estrada in February.
Girardi was disbarred last year after the State Bar of California
received 205 complaints against the veteran attorney.
Girardi was part of the legal team that successfully sued Pacific
Gas & Electric in 1993 for contaminating the groundwater in the
small town of Hinkley, Calif. The case was the basis of the 2001
Oscar-winning film "Erin Brockovich."
Girardi and Jayne were sued by Edelson PC, a Chicago-based
class-action firm, on behalf of a number of Boeing plane crash
victims for allegedly embezzling settlement funds meant to help the
victims of Lion Air Flight 610.
Jayne -- who denied the charges -- was dismissed from that case in
January 2022.
The reality TV star filed for divorce from Girardi in November 2020
after 21 years of marriage.The divorce case has been held up since
the Girardi Keese law firm filed for bankruptcy.
Girardi's brother, Robert, had been serving as the disgraced
lawyer’s conservator after the former attorney underwent a mental
assessment in February 2021. Dr. Nathan Lavid, a Long Beach
forensic and clinical psychiatrist, wrote in a sworn affidavit that
Girardi suffered from late-onset Alzheimer’s disease and
dementia.
Girardi remains free on $250,000 bond.
About Girardi & Keese
Girardi and Keese or Girardi & Keese was a Los Angeles-based law
firm founded in 1965 by lawyers Thomas Girardi and Robert Keese.
It served clients in California in a variety of legal areas. It
was known for representing plaintiffs against major corporations.
An involuntary Chapter 7 petition (Bankr. C.D. Cal. Case No.
20-21022) was filed in December 2020 against GIRARDI KEESE by
alleged creditors Jill O'Callahan, Robert M. Keese, John Abassian,
Erika Saldana, Virginia Antonio, and Kimberly Archie.
The petitioners' attorneys:
Andrew Goodman
Goodman Law Offices, Apc
Tel: 818-802-5044
E-mail: agoodman@andyglaw.com
Elissa D. Miller, a member of the firm SulmeyerKupetz, has been
appointed as Chapter 7 trustee for GIRARDI KEESE. The Chapter 7
trustee can be reached at:
Elissa D. Miller
333 South Grand Ave., Suite 3400
Los Angeles, California 90071-1406
Telephone: (213) 626-2311
Facsimile: (213) 629-4520
E-mail: emiller@sulmeyerlaw.com
An involuntary Chapter 7 petition was also filed against Thomas
Vincent Girardi (Case No. 20-21020) on Dec. 18, 2020. The Chapter 7
trustee can be reached at:
Jason M. Rund
Email: trustee@srlawyers.com
840 Apollo Street, Suite 351
El Segundo, CA 90245
GLOBAL MEDICAL: $1.98B Bank Debt Trades at 40% Discount
-------------------------------------------------------
Participations in a syndicated loan under which Global Medical
Response Inc is a borrower were trading in the secondary market
around 60.1 cents-on-the-dollar during the week ended Friday, June
16, 2023, according to Bloomberg's Evaluated Pricing service data.
The $1.98 billion facility is a Term loan that is scheduled to
mature on October 2, 2025. About $1.95 billion of the loan is
withdrawn and outstanding.
Global Medical Response Inc and GMR Buyer Corp provide emergency
air medical services.
GREELEY LAND: Seeks to Extend Exclusive Solicitation Period
-----------------------------------------------------------
Greeley Land, LLC asks the U.S. Bankruptcy Court for the District
of Colorado for a 90-day extension of the deadline within which the
Debtor has the exclusive right to solicit acceptances of a
reorganization plan through and including September 11, 2023.
The Debtor has a plan and disclosure statement on file and has
taken actionable steps in furtherance of its Plan, including moving
to engage an appraiser and a broker to sell the Debtor's real
property. The Court has a hearing on the adequacy of the Disclosure
Statement, which is after the exclusivity period will have lapsed,
pending any subsequent extension.
The Debtor is represented by:
Michael J. Pankow, Esq.
Amalia Y. Sax-Bolder, Esq.
Suzanne K. Daigle, Esq.
BROWNSTEIN HYATT FARBER SCHRECK, LLP
675 Fifteenth Street, Suite 2900
Denver, CO 80202
Telephone: (303) 223-1100
Facsimile: (303) 223-1111
E-mail: mpankow@bhfs.com
asax-bolder@bhfs.com
sdaigle@bhfs.com
About Greeley Land, LLC
Greeley Land, LLC, an apartment building operator, filed its
voluntary petition for relief under Chapter 11 of the Bankruptcy
Code (Bankr. D. Colo. Case No. 22-14864) on Dec. 13, 2022, listing
$10 million to $50 million in both assets and liabilities.
Judge Michael E. Romero presides over the case.
Michael J. Pankow, Esq., and Amalia Y. Sax-Bolder, Esq., at
Brownstein Hyatt Farber Schreck, LLP are the Debtor's bankruptcy
attorneys.
GROWLIFE INC: Incurs $4.5 Million Net Loss in 2022
--------------------------------------------------
GrowLife, Inc. filed with the Securities and Exchange Commission
its Annual Report on Form 10-K disclosing a net loss of $4.48
million for the year ended Dec. 31, 2022, compared to a net loss of
$5.47 million for the year ended Dec. 31, 2021.
As of Dec. 31, 2022, the Company had $254,208 in total assets,
$8.66 million in total current liabilities, and a total
stockholders' deficit of $8.41 million.
Irvine, CA-based Macias Gini & O'Connell LLP, the Company's auditor
since 2021, issued a "going concern" qualification in its report
dated June 13, 2023, citing that the Company has suffered recurring
losses from operations, incurred negative cash flows from operating
activities, and has an accumulated deficit that raise substantial
doubt about its ability to continue as a going concern.
A full-text copy of the Form 10-K is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1161582/000165495423007959/phot_10k.htm
About GrowLife
Founded in 2012, GrowLife, Inc. (PHOT)--
http://www.shopgrowlife.com-- is the owner of Bridgetown
Mushrooms, acting as its parent Company. Founded in 2018 in
Portland Oregon, Bridgetown Mushrooms grows a variety of functional
and gourmet mushrooms which are in turn sold through multiple
commercial and consumer sales channels. The company also develops
and markets mushroom based products nationwide as well as
manufactures and sells Mycology supplies to meet the demand for
commercial mushroom farmers across the United States.
GROWLIFE INC: Silverback Capital Reports 9.9% Equity Stake
----------------------------------------------------------
Silverback Capital Corporation disclosed in a Schedule 13G/A filed
with the Securities and Exchange Commission that it beneficially
owns 3,662,761 shares of common stock of Growlife, Inc.,
representing 9.99 percent (based on 33,001,515 shares outstanding
(after conversion to reach 9.99%) on June 1, 2023 (as reported by
the OTC Markets Group Inc. on June 12, 2023). A full-text copy of
the regulatory filing is available for free at:
https://www.sec.gov/Archives/edgar/data/1161582/000173112223001092/e4784_sc13-ga.htm
About GrowLife
Founded in 2012, GrowLife, Inc. (PHOT)--
http://www.shopgrowlife.com-- is the owner of Bridgetown
Mushrooms, acting as its parent Company. Founded in 2018 in
Portland Oregon, Bridgetown Mushrooms grows a variety of functional
and gourmet mushrooms which are in turn sold through multiple
commercial and consumer sales channels. The company also develops
and markets mushroom based products nationwide as well as
manufactures and sells Mycology supplies to meet the demand for
commercial mushroom farmers across the United States.
GrowLife reported a net loss of $5.47 million for the year ended
Dec. 31, 2021, compared to a net loss of $6.38 million for the year
ended Dec. 31, 2020. As of Sept. 30, 2022, the Company had $2.71
million in total assets, $9.97 million in total current
liabilities, $59,057 in total long-term liabilities, and a total
stockholders' deficit of $7.33 million.
Irvine, Calif.-based Macias Gini & O'Connell LLP, the Company's
auditor since 2021, issued a "going concern" qualification in its
report dated May 16, 2022, citing that the Company has suffered
recurring losses from operations, incurred negative cash flows from
operating activities, and has an accumulated deficit that raise
substantial doubt about its ability to continue as a going concern.
H & H INVESTMENT: Christopher Hayes Named Subchapter V Trustee
--------------------------------------------------------------
The U.S. Trustee for Region 17 appointed Christopher Hayes as
Subchapter V trustee for H & H Investment Group, LLC.
Mr. Hayes will be paid an hourly fee of $440 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Hayes declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Christopher Hayes
23 Railroad Avenue, #1238
Danville, CA 94526
Phone: (925) 725-4323
Email: chayestrustee@gmail.com
About H & H Investment
H & H Investment Group, LLC, a company in Alameda, Calif., filed a
petition under Chapter 11, Subchapter V of the Bankruptcy Code
(Bankr. N.D. Calif. Case No. 23-40642) on June 2, 2023, with
$500,000 in assets and $2,899,466 in liabilities. Peter Choy,
managing member, signed the petition.
Judge William J. Lafferty oversees the case.
E. Vincent Wood, Esq., at The Law Offices of E. Vincent Wood is the
Debtor's counsel.
HAUSER INC: Subchapter V Plan Confirmed by Judge
------------------------------------------------
Judge Maria L. Oxholm has entered an order confirming the
Subchapter V Plan of Reorganization of Hauser, Inc.
One objection to confirmation was filed by Kingsford Broach and
Tool, Inc. asserting that the Plan failed to comply with Sections
1191(c)(2), 1191(c)(3)(B), 1129(a)(3), and 1129(a)(7) of the
Bankruptcy Code. The Debtor argued that it complied with all
requirements under the Bankruptcy Code and also argued that
Kingsford's claim in the case should be disallowed.
The Debtor and Kingsford resolved their dispute and agreed to
allowance of the Kingsford claim in the amount of $50,000, but with
expedited payment terms. At a hearing held on June 7, 2023, the
Court granted Debtor's Motion for an Order Approving Settlement
with Kingsford Broach and Tool, Inc. As a result of this
settlement, Kingsford is deemed to have withdrawn its objection to
confirmation of the Plan and its ballot rejecting Plan
confirmation.
Due to Kingsford's withdrawal of its ballot, all creditors that
have voted to accept or reject the Plan have voted to accept the
Plan, as have all equity interest holders. The Order Approving
Settlement is adopted and incorporated into this Order. Therefore,
the Plan may be confirmed on a consensual basis and not under
Section 1191(b) of the Bankruptcy Code.
The Court has reviewed the Plan, heard the arguments and evidence
presented by the parties, and finds that the Plan, as modified by
this Confirmation Order, (i) complies with the requirements of
Section 1190 of the Bankruptcy Code, (ii) satisfies and complies
with each of the elements necessary for confirmation set forth in
Sections 1191(a), 1191(c) and all applicable provisions of the
Bankruptcy Code.
Specifically, the Court finds that the Plan includes all the
information and disclosures required by Section 1190 of the
Bankruptcy Code. The Plan was proposed for the proper purposes of
reorganizing the Debtor's business and makes substantial
distributions to general unsecured creditors. Accordingly, the
Court finds that the Plan was proposed in good faith as required by
Section 1129(a)(3) of the Bankruptcy Code.
Under the Plan and attached projections, Debtor is required to
distribute all projected disposable income to be received during
the three-year Plan period to creditors (up to payment in full of
all creditors' claims) in compliance with Section 1191(c)(2) of the
Bankruptcy Code. There is a reasonable likelihood that Debtor will
be able to make all payments under the Plan as set forth in the
projections attached to the Plan and Section 5.1.3 of the Plan
contains appropriate remedies in the event of nonpayment, each in
compliance with Sections 1191(c)(3)(B)(i) and (ii) of the
Bankruptcy Code.
A copy of the Plan Confirmation Order dated June 15, 2023 is
available at https://urlcurt.com/u?l=mntlAt from PacerMonitor.com
at no charge.
Attorneys for Debtor:
Ryan D. Heilman, Esq.
Wernette Heilman, PLLC
40900 Woodward Ave., Suite 111
Bloomfield, MI 48304
Telephone: (248)835-4745
Email: ryan@wernetteheilman.com
About Hauser Inc.
Hauser, Inc., operates an engineering shop building high quality
tooling products, manufacturing and refurbishing super abrasive
single layer grinding wheels and other grinders and cutting tools.
Hauser, Inc., filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. E.D. Mich. Case No. 22-47028) on Sept.
7, 2022, with up to $1 million in both assets and liabilities.
Charles M. Mouranie serves as Subchapter V trustee.
Judge Maria L. Oxholm oversees the case.
The Debtor is represented by Ryan D. Heilman, Esq., at Wernette
Heilman, PLLC.
HAVRE EAGLES: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: Havre Eagles Manor
d/b/a EAGLES MANOR
d/b/a EAGLES MANOR HAVRE
d/b/a EAGLES MANOR HAVRE, LLC
d/b/a EAGLES MANOR PROJECT NO 2 COMMUNITY BOAR
d/b/a EAGLES MANOR PROJECT NO. 3, INC.
d/b/a HAVRE EAGLES MANOR, INC.
20 3rd St W
Havre, MT 59501-3570
Chapter 11 Petition Date: June 20, 2023
Court: United States Bankruptcy Court
District of Montana
Case No.: 23-40044
Judge: Hon. Benjamin P. Hursh
Debtor's Counsel: Gary S. Deschenes, Esq.
DESCHENES & ASSOCIATES LAW OFFICES
309 1st Ave N
Great Falls, MT 59401-2505
Tel: 406-761-6112
Email: gsd@dalawmt.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Ron Harmon as president.
The Debtor did not file a list of its 20 largest unsecured
creditors together with the petition.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/FIDMC3A/HAVRE_EAGLES_MANOR__mtbke-23-40044__0001.0.pdf?mcid=tGE4TAMA
HITSON CABINET: Asset Sale Proceeds to Fund Plan
------------------------------------------------
Hitson Cabinet Design, Inc., filed with the U.S. Bankruptcy Court
for the Eastern District of Tennessee a First Amended Small
Business Plan of Liquidation dated June 15, 2023.
The Debtor is a business that designs and builds custom cabinetry
and interior trim. It presently has two locations: A showroom in
Chattanooga, Tennessee and a manufacturing facility/warehouse in
Rock Spring, Georgia.
This is a Plan to sell all of the Debtor's assets pursuant to
Motion and Notice of Sale. The Debtor has entered into an Asset
Purchase Agreement provides for a $600,000.00 purchase price which
Debtor believes to be the fair market value of its Assets.
Authorized representatives of the Purchaser negotiated with the
Debtor at arms-length and reached an agreement to purchase the
Business in exchange for $600,000 to be paid in cash at closing.
The APA also provides for a mechanism for customers (creditors) of
the Debtor who have paid deposits for some or all of their cabinet
work can have their cabinets finished without repaying a third
party for the entire cost of their project. Those creditors will be
allowed to have their job finished by the Purchaser for the payment
of any unpaid balance currently owed, plus 30% of the entire job
charge. If there is no unpaid balance, those creditors can have the
job finished in its entirety with the payment of 30% of the entire
job charge.
Class 5 consists of Priority unsecured claim. Total amount of
priority claims if all creditors in this class elect Option A shall
be $90,450.00. These creditors may select one of two options for
treatment:
* Option A: Elect Priority Treatment under Section 507(a)(7)
of the Bankruptcy Code and have an allowed Priority Claim of
$3,350.00, with the balance of their claim to be classified and
treated as a general unsecured claim. In order to elect Option A
and participate in the distribution of the Plan, these creditors
must file a proof of claim by the bar date of July 24, 2023. If a
creditor in this class files a proof of claim and does not elect
Option B, they will be deemed to have elected Option A.
* Option B: Elect for the new owner of Hitson Cabinet Designs,
Inc. to complete their job for the payment of any unpaid balance
currently owed, plus 30% of the entire job charge. If there is no
unpaid balance, those creditors can have the job finished in its
entirety with the payment of 30% of the entire job charge. By
electing this option, any priority claim under 11 USC 507(a)(7)
will be treated as a general unsecured claim in Class 6 and these
creditors must file a proof of claim by the bar date of July 24,
2023.
Class 6 consists of General Unsecured Claims. Paid Pro-rata share
of proceeds from sale of Debtor's assets after the payment of
priority and administrative claims. This Class is impaired.
Class 7 consists of Equity Interest Holders: Gary Hitson owner of
100% of the Shares of Hitson Cabinet Design, Inc. Mr. Hitson is
selling all of the assets of the business and not retaining any
ownership interest in the new company.
The Debtor intends to sell all of the assets of the company
pursuant to the terms of the Asset Purchase Agreement. The proceeds
from the sale will be divided pursuant to the terms of this Plan.
A full-text copy of the First Amended Plan dated June 15, 2023 is
available at https://urlcurt.com/u?l=HtJkRJ from PacerMonitor.com
at no charge.
About Hitson Cabinet
Hitson Cabinet Design, Inc., is a business that designs and builds
custom cabinetry and interior trim. The Debtor filed a Chapter 11
petition (Bankr. E.D. Tenn. Case No. 23-10860) on April 14, 2023.
The Hon. Shelley D. Rucker oversees the case.
Attorney for the Debtor:
FARINASH & STOFAN
Amanda M. Stofan, Esq.
100 West M L King Blvd., Suite 816
Chattanooga, TN 37402
Phone: (423) 805-3100
Email: Amanda@8053100.com
INSTANT BRANDS: Davis Polk Serves as Adviser on Restructuring
-------------------------------------------------------------
Davis Polk is advising Instant Brands Acquisition Holdings Inc. and
certain of its affiliates in connection with their restructuring
under chapter 11 of the United States Bankruptcy Code. Instant
Brands intends to use the restructuring process to protect and
support its ongoing business operations and address its debt and
unfunded pension obligations while it works toward an orderly and
efficient sale of the business or restructuring under a plan of
reorganization.
On June 12, 2023, Instant Brands filed voluntary chapter 11
petitions in the United States Bankruptcy Court for the Southern
District of Texas. At a hearing on June 13, 2023, Judge David R.
Jones approved Instant Brands' debtor-in-possession financing on an
interim basis. Notably, the Court authorized Instant Brands on an
interim basis to access and use financing from its existing lenders
provided under (i) a $125.0 million debtor-in-possession
asset-based revolving credit facility and (ii) a $132.5 million
debtor-in-possession term loan credit facility, up to $100 million
of which will be immediately funded on an interim basis. In
addition, the Court granted Instant Brands all of its requested
relief in its first-day motions, including the authority to pay a
significant amount of prepetition critical vendor obligations and
to pay employee wages and benefits in the ordinary course.
Instant Brands is a company that designs, manufactures and markets
a global portfolio of innovative and iconic consumer lifestyle
brands, including Instant, Pyrex, Corelle, Corningware, Snapware,
Chicago Cutlery and Visions. Headquartered in Downers Grove,
Illinois, Instant Brands and its affiliates sell their products
worldwide, employ more than 2,000 people and operate in several
countries outside the United States.
The Davis Polk restructuring team includes partners Brian M.
Resnick and David Schiff, counsel Steven Z. Szanzer and Joanna
McDonald and associates Paavani Garg, Stella Li, Sophy Ma, Moshe
Melcer, Linyang Wu and Lily Zhou. The finance team includes partner
J.W. Perry, counsel Jonathan B. Brown and Bernard Tsepelman and
associate Natalie Lin. Partner Elliot Moskowitz provided litigation
advice, partner Ethan R. Goldman provided tax advice and partner
Travis Triano provided executive compensation advice. Members of
the Davis Polk team are based in the New York and London offices.
INTELLIPHARMACEUTICS: Incurs $2.9 Million Net Loss in 2022
----------------------------------------------------------
Intellipharmaceutics International Inc. filed with the Securities
and Exchange Commission its Annual Report on Form 20-F disclosing a
net loss and comprehensive loss of $2.89 million on $65,728 of
revenues for the year ended Nov. 30, 2022, compared to a net loss
and comprehensive loss of $5.14 million on $0 of revenue for the
year ended Dec. 31, 2021.
As of Nov. 30, 2022, the Company had $1.43 million in total assets,
$12 million in total liabilities, and a total shareholders'
deficiency of $10.57 million.
Toronto, Canada-based MNP LLP, the Company's auditor since 2016,
issued a "going concern" qualification in its report dated June 5,
2023, citing that the Company has suffered recurring losses from
operations and has a net capital deficiency that raise substantial
doubt about its ability to continue as a going concern.
A full-text copy of the Form 20-F is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1474835/000165495423008028/ipii_20f.htm
Intellipharmaceutics
Intellipharmaceutics International Inc. is a pharmaceutical company
specializing in the research, development and manufacture of novel
and generic controlled-release and targeted-release oral solid
dosage drugs. The Company's patented Hypermatrix technology is a
multidimensional controlled-release drug delivery platform that can
be applied to the efficient development of a wide range of existing
and new pharmaceuticals. Based on this technology platform, the
Company has developed several drug delivery systems and a pipeline
of products (some of which have received FDA approval) and product
candidates in various stages of development, including ANDAs filed
with the FDA (and one ANDS filed with Health Canada) and one NDA
filing, in therapeutic areas that include neurology,
cardiovascular, gastrointestinal tract ("GIT"), diabetes and pain.
INVACARE CORP: White Oak Provides $40-Mil. Credit Facility
----------------------------------------------------------
White Oak ABL, LLC and White Oak Commercial Finance, LLC, the
asset-based lending affiliates of White Oak Global Advisors, LLC,
(collectively, "White Oak") provided a $40 million North America
ABL credit facility (the "ABL Facility") to Invacare Holdings
Corporation, a leading manufacturer and distributor of medical
equipment used in non-acute care settings. The $40 million ABL
Facility was part of Invacare's larger financial restructuring,
which allowed the Company to emerge from a voluntary pre-arranged
bankruptcy and continue to pursue its goals in its core lifestyle
and mobility & seating product categories.
"We at White Oak are excited to partner with Invacare and support
their long-term growth plans and exit from bankruptcy. With this
strategic partnership, White Oak has once again demonstrated its
ability to develop tailored ABL solutions to support the operations
and sustained growth of middle market businesses," said Tom Otte,
Head of ABL.
"We are pleased to have secured the ABL Facility which provides
additional flexibility for the North American business as we focus
on executing our global transformation plan. We believe the Company
is well-positioned to capitalize on global tailwinds in the markets
we serve," said Geoffrey P. Purtill, President and Chief Executive
Officer of Invacare.
About White Oak
White Oak Global Advisors, LLC ("WOGA") --
http://www.whiteoaksf.com/commercialfinance-- is a leading
alternative debt manager specializing in originating and providing
financing solutions to support small and middle market enterprises.
WOGA and its financing affiliates provide over twenty lending
products to the market that include term, asset-based, and
equipment loans. Since its inception in 2007, WOGA and its
affiliates have deployed over $11 billion across its product lines.
White Oak ABL, LLC and White Oak Commercial Finance, LLC are
affiliates of WOGA and provide financial solutions including
asset-based lending, full service factoring, lender financing,
invoice discounting, government contract financing, supply chain
financing, inventory financing, US import/export financing, trade
credit risk management, accounts receivable management and
credit/collections services. The firms have offices and personnel
throughout the US, UK, and Australia.
About Invacare Corporation
Headquartered in Elyria, Ohio, Invacare Corporation (IVC) is a
leading manufacturer and distributor in its markets for medical
equipment used in non-acute care settings. The company provides
clinically complex medical device solutions for congenital (e.g.,
cerebral palsy, muscular dystrophy, spina bifida), acquired (e.g.,
stroke, spinal cord injury, traumatic brain injury, post-acute
recovery, pressure ulcers) and degenerative (e.g., ALS, multiple
sclerosis, elderly, bariatric) ailments. Invacare employs
approximately 3,400 associates and markets its products in more
than 100 countries around the world.
Invacare Corp. and 2 U.S. subsidiaries sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead Case
No. 23-90068) on January 31, 2023. In the petition signed by
Kathleen Leneghan, senior vice president and chief financial
officer, the Debtor disclosed up to $1 billion in both assets and
liabilities.
The Debtors tapped Kirkland and Ellis, LLP and Kirkland and
International LLP as bankruptcy counsel, McDonald Hopkins, LLC as
bankruptcy co-counsel, Huron Consulting Group as restructuring
advisor, Miller Buckfire and Co. as financial advisor and
investment banker, and Epiq Corporate Restructuring, LLC, as
claims, noticing, and solicitation agent and administrative
advisor. Street Advisory Group, LLC is serving as strategic
communications advisor to the company.
Judge Christopher M. Lopez oversees the cases.
The DIP Term Loan Lenders led by Cantor Fitzgerald Securities, as
administrative agent, and GLAS Trust Corporation Limited, as
collateral agent, have retained Davis Polk & Wardwell LLP, Ducera
Partners, Porter Hedges LLP, Baker & McKenzie LLP, McDermott Will &
Emery LLP, Shipman & Goodwin LLP as advisors.
PNC Bank, National Association, and the ABL DIP Lenders, have
retained Blank Rome LLP, and B. Riley Advisory Services as
advisors.
Brown Rudnick LLP is serving as legal counsel and GLC Advisors &
Co., LLC is serving as investment banker to the ad hoc committee of
unsecured notes.
The U.S. Trustee for Region 7 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
The committee is represented by Kilpatrick Townsend & Stockton,
LLP.
JRT340ASSOCIATES: July 18 Hearing on Bid to Extend Plan Exclusivity
-------------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York is
set to hold a hearing on July 18, 2023 at 10:00 a.m. to consider
the motion filed by JRT340ASSOCIATES LLC to extend the time during
which the Debtor has the exclusive right to file a plan of
reorganization and solicit acceptances thereto.
The responses to the application, if any, must be filed with the
Clerk of the Court and be served upon the undersigned for receipt
at least five business days in advance of the hearing with a copy
to the chambers of the Honorable Lisa G. Beckerman.
All attorneys and parties wishing to appear at, or attend the
Hearing, must visit the court-solutions website at
www.court-solutions.com and register prior to the Hearing.
Participants are required to register their appearance by 4:00 PM
one business day before any scheduled Hearing.
About JRT340ASSOCIATES LLC
JRT340ASSOCIATES LLC filed a petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. S.D.N.Y. Case No. 23-10235) on Feb.
21, 2023. In the petition filed by Michael Trencher, as manager,
the Debtor reported assets and liabilities between $1 million and
$10 million.
The Debtor is represented by:
Clifford A. Katz, Esq.
PLATZER, SWERGOLD, GOLDBERG, KATZ & JASLOW, LLP
475 Park Avenue South, 18th Floor
New York, NY 10016
Tel: 212-593-3000
Email: ckatz@platzerlaw.com
KENT SEITZ: Case Summary & Five Unsecured Creditors
---------------------------------------------------
Debtor: Kent Seitz, MD, PA
1421 Orchard Lake Dr.
Charlotte, NC 28270
Business Description: Kent Seitz, MD PA operates a health care
business.
Chapter 11 Petition Date: June 19, 2023
Court: United States Bankruptcy Court
Western District of North Carolina
Case No.: 23-30391
Judge: Hon. Laura T. Beyer
Debtor's Counsel: Rashad Blossom, Esq.
BLOSSOM LAW PLLC
301 S. McDowell St.
Suite 1103
Charlotte, NC 28204
Tel: 704-256-7766
Fax: 704-486-5952
Email: rblossom@blossomlaw.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Kent Seitz, MD as president/CEO.
A full-text copy of the petition containing, among other items, a
list of the Debtor's five unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/SUKRJDA/Kent_Seitz_MD_PA__ncwbke-23-30391__0001.0.pdf?mcid=tGE4TAMA
LATAM AIRLINES: Justices Pass on Bond Interest Dispute
------------------------------------------------------
Yun Park of Bloomberg Law reports that the US Supreme Court
declined to examine whether Latam Airlines Group SA has to include
$150 million in interest payments tied to its subsidiary's bonds in
the Chilean airline's reorganization plan.
The decision Monday leaves in place an opinion by the US Court of
Appeals for the Second Circuit that allowed Latam, which exited
bankruptcy in November 2022, to avoid paying the interest.
The appeals court ruled in December 2022 that the airline’s
decision to skip the interest payments didn't impair the claims of
investors who held bonds issued by Latam's Brazilian subsidiary,
Tam Linhas Aéreas SA.
About LATAM Airlines Group
LATAM Airlines Group S.A. -- http://www.latam.com/-- is a
pan-Latin American airline holding company involved in the
transportation of passengers and cargo and operates as one unified
business enterprise. It is the largest passenger airline in South
America.
Before the onset of the COVID-19 pandemic, LATAM offered passenger
transport services to 145 different destinations in 26 countries,
including domestic flights in Argentina, Brazil, Chile, Colombia,
Ecuador and Peru, and international services within Latin America
as well as to Europe, the United States, the Caribbean, Oceania,
Asia and Africa.
LATAM and its 28 affiliates sought Chapter 11 protection (Bankr.
S.D.N.Y. Lead Case No. 20-11254) on May 25, 2020. Affiliates in
Chile, Peru, Colombia, Ecuador and the United States are part of
the Chapter 11 filing.
The Debtors disclosed $21,087,806,000 in total assets and
$17,958,629,000 in total liabilities as of Dec. 31, 2019.
The Hon. James L. Garrity, Jr., is the case judge.
The Debtors tapped Cleary Gottlieb Steen & Hamilton LLP as
bankruptcy counsel, FTI Consulting as restructuring advisor, Lee
Brock Camargo Advogados as local Brazilian litigation counsel, and
Togut, Segal & Segal LLP and Claro & Cia in Chile as special
counsel. The Boston Consulting Group, Inc. and The Boston
Consulting Group UK LLP serve as the Debtors' strategic advisors.
Prime Clerk LLC is the claims agent.
The official committee of unsecured creditors formed in the case
tapped Dechert LLP as its bankruptcy counsel, Klestadt Winters
Jureller Southard & Stevens, LLP as conflicts counsel, UBS
Securities LLC as investment banker, and Conway MacKenzie, LLC as
financial advisor. Ferro Castro Neves Daltro & Gomide Advogados is
the committee's Brazilian counsel.
The ad hoc group of LATAM bondholders tapped White & Case, LLP as
counsel.
Glenn Agre Bergman & Fuentes, LLP, led by managing partner Andrew
Glenn and partner Shai Schmidt, has been retained as counsel to the
ad hoc committee of shareholders.
LIFESCAN GLOBAL: Davis Polk Advises Term Lenders on Refinancing
---------------------------------------------------------------
Davis Polk advised an ad hoc group of term lenders in connection
with the refinancing and amendment of term loans of LifeScan Global
Corporation under LifeScan's approximately $1.1 billion first-lien
term loan credit facility and $275 million second-lien term loan
credit facility. In connection with the transaction, holders of
first-lien and second-lien term loans exchanged into new first-lien
and second-lien credit facilities with extended maturities. The
transaction also included, among other things, a $50 million
deleveraging equity investment by LifeScan's sponsor, Platinum
Equity, a maturity extension of LifeScan's revolving credit
facility, a consent fee, rate increases, and other material
enhanced credit protections and reporting requirements under the
new first-lien and second-lien credit facilities.
LifeScan is a medical device manufacturer focused on the glucose
management and diabetes market. For more than 40 years, LifeScan
has advanced glucose management and diabetes care with pioneering
technologies and new products defined by simplicity, accuracy and
trust. More than 20 million people and their caregivers around the
world count on LifeScan's OneTouch brand products to manage their
diabetes.
The Davis Polk restructuring team included partner Damian S.
Schaible, counsel Jon Finelli and associates Michael Pera, Eric
Hwang, Ethan Stern and Audrey Youn. The finance team included
partner Nick Benham and associates Claudia Herron and Duan Xu. The
tax team included counsel Leslie J. Altus and associate Yixuan
Long. Members of the Davis Polk team are based in the New York and
London offices.
Davis Polk refers to Davis Polk & Wardwell LLP, a New York limited
liability partnership, and its associated entities.
Lifescan Global Corporation is a provider of blood glucose
monitoring systems for home and hospital use.
LUCKY BUCKS: Bondholders Spar With Trive Over Dividends
-------------------------------------------------------
Steven Church of Bloomberg News reports that the failure of slot
machine operator Lucky Bucks LLC has set off a battle between
bondholders owed $250 million and the company's private equity
owners.
Marathon Asset Management and Monarch Alternative Capital are among
the creditors who claim company owner Trive Capital lied to help
Lucky Bucks sell bonds in 2021 and then used the proceeds to
wrongly pay itself a dividend.
Lucky Bucks filed for bankruptcy June 9 in Delaware with plans to
cut hundreds of millions of dollars in debt and prevent any related
potential lawsuits against Trive and other company insiders.
About Lucky Bucks
Headquartered in Norcross, Georgia, Lucky Bucks, LLC, and its
affiliates are digital skill-based coin-operated amusement machine
route operators based in and incorporated under the laws of the
state of Georgia.
Lucky Bucks LLC and two affiliates sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 23-10758)
on June 9, 2023.
In the petition signed by James Boyden, executive vice president,
the Debtors disclosed up to $500 million in assets and up to $1
billion in liabilities on a consolidated basis. As of the Petition
Date, the Debtors have outstanding funded debt obligations in the
aggregate principal amount of $610 million.
Dennis F. Dunne, Esq., and Tyson Lomazow, Esq., at Milbank LLP; and
Russell C. Silberglied, Esq., at Richards, Layton & Finger P.A.,
serve as the Debtor's legal counsel. Evercore Group L.L.C. is the
Debtors' investment banker. M3 Advisory Partners, L.P., serves as
the Debtors' financial advisor. Epiq Corporate Restructuring,
LLC,
serves as the Debtors' claims and noticing agent.
LUCKY BUCKS: DIP Loan from Wilmington Savings Wins Interim OK
-------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware granted
Lucky Bucks, LLC and its debtor-affiliates interim authority to use
cash collateral and obtain postpetition financing, on an interim
basis.
The Debtors are authorized to borrow up to an aggregate principal
amount of $14.5 million of Initial New Money OpCo DIP Loans and to
exchange up to $43.5 million of Prepetition OpCo First Lien
Obligations for Initial Rolled OpCo DIP Term Loans on a
three-to-one basis for each dollar of the Initial New Money OpCo
DIP Loans funded by each OpCo DIP Lender, indemnities and other
expenses and other amounts provided for in the OpCo DIP Facility
Documents.
The DIP Facility provides the Debtors with $20.5 million in new
funded capital that is necessary to fund the Debtors' Chapter 11
Cases and their reorganized businesses. This facility is
backstopped by the members of an ad hoc group of term lenders and
an ad hoc group of revolving loan lenders under the Prepetition
First Lien Credit Agreement, but will be made available to all
Prepetition First Lien Lenders on a pro rata basis.
Additionally, the DIP Facility provides for the roll-up of $61.5
million of existing obligations under the Prepetition First Lien
Credit Agreement. Finally, the DIP Facility provides that its
entire principal balance can be converted, in accordance with the
provisions of the Plan, into the Exit Facility, which will help
provide the reorganized Debtors with the liquidity they need
post-emergence.
The DIP Facility is a key component of the holistic restructuring
the Debtors have negotiated prepetition with ad hoc groups and that
is reflected in a Restructuring Support Agreement and a prepackaged
Plan.
Wilmington Savings Fund Society, FSB, or an agent reasonably
acceptable to Lucky Bucks and the Required Backstop Lenders, is the
sole administrative agent and collateral agent for the DIP
Facility.
The DIP Loans will mature and be due and payable on the earliest to
occur of:
(i) 120 calendar days after the Petition Date; provided that
the Initial Maturity Date may be extended with the prior written
consent of the Required DIP Lenders in their sole discretion for up
to 1 additional 30-day period;
(ii) the date of substantial consummation of a plan of
reorganization filed in the Chapter 11 Cases that is confirmed
pursuant to an order entered by the Bankruptcy Court;
(iii) the date the Bankruptcy Court orders the conversion of the
bankruptcy case of any of the Debtors to a liquidation pursuant to
chapter 7 of the Bankruptcy Code; and
(iv) the date of acceleration of all or any portion of the DIP
Loans and the termination of the DIP Commitments upon the
occurrence of an Event of Default.
The events that constitute an "Event of Default" includes:
(i) the entry of a final order with respect the DIP Facility,
granting final approval of the DIP Facility and DIP Facility
Documents in form or substance that is not acceptable to the
Required DIP Lenders in their sole discretion;
(ii) failure by any OpCo Debtor to be in compliance with
provisions of the DIP Term Sheet (subject to applicable grace
periods as set forth in any DIP Facility Document or any DIP Order,
including a one Business Day grace period for delivery of the
Approved DIP Budgets, cash flow forecasts and Weekly Variance
Reports; it being understood and agreed that a failure to comply
with item (vii) (with respect to maintenance of existence and
material licenses) or (ix) (with respect to the loss of any
material license or the taking or failure to take any action that
could reasonably be expected to result in the loss of any material
license) of the section titled "Affirmative Covenants" will result
in an immediate Event of Default); and
(iii) any request made to the Bankruptcy Court by any Debtor
for the reversal, modification, amendment, stay, reconsideration or
vacatur of any DIP Order, as entered by the Bankruptcy Court.
The Debtors are required to comply with these milestones:
(i) The Debtor must file with the Bankruptcy Court a Plan and
Disclosure Statement on the Petition Date;
(ii) No later than six calendar days after the Petition Date,
the Bankruptcy Court will have entered the Interim DIP Order;
(iii) No later than seven calendar days after the Petition Date,
the independent director of the Board of Directors of Holdings will
deliver to the Lender Advisors an interim update of his findings in
respect of contract renewal churn;
(iv) No later than 14-calendar days after the Petition Date,
the independent director of the Board of Directors of Holdings will
deliver to the Lender Advisors a further interim update of his
findings in respect of contract renewal churn;
(v) No later than 35 calendar days after the Petition Date,
the Bankruptcy Court will have entered the Final DIP Order;
(vi) No later than 60 calendar days after the Petition Date,
the Bankruptcy Court will have entered the Confirmation Order (as
defined in the Restructuring Support Agreement) with respect to the
Plan; and
(vii) No later than five calendar days after the later of (a)
the receipt of any required approvals of the GLC or as otherwise
may be required under the rules of the GLC or any other applicable
COAM Law in connection with the Stand-Alone Restructuring
Transactions and the occurrence of the Plan Effective Date and (b)
the entry of the Confirmation Order, the Plan Effective Date will
have occurred.
As of the Petition Date, the Debtors have outstanding funded debt
obligations in the aggregate principal amount of $610 million,
consisting of (i) $554 million of secured debt under the TL
Facility, plus applicable interest, premiums (if any), costs, fees,
expenses and other obligations and (ii) $56 million of secured debt
under a RC Facility, plus applicable interest, premiums (if any),
costs, fees, expenses and other obligations, each pursuant to the
Prepetition First Lien Credit Agreement.
As adequate protection, the Prepetition First Lien Agent, for the
benefit of itself and the other Prepetition Secured Parties, are
granted, as security for and solely to the extent of any Diminution
in Value, additional and replacement valid, binding, enforceable,
non-avoidable, effective and automatically perfected liens on, and
security interest in the DIP Collateral, excluding, for the
avoidance of doubt, the Avoidance Actions, but including the
Avoidance Proceeds, without the necessity of the execution,
recordation or other filing of any security agreements, control
agreements, pledge agreements, financing statements, mortgages, or
other similar documents. The Adequate Protection Liens are subject
and junior only to the DIP Liens, the Prepetition Permitted Liens
and the Carve Out.
As further adequate protection, and to the extent provided by 11
U.S.C. section 503(b) and 507(b), the Adequate Protection Parties
are granted, as of the Petition Date, allowed administrative
expense claims in each of the Chapter 11 Cases to the extent of any
Diminution in Value.
A final hearing on the matter is set for July 17, 2023 at 10 a.m.
A copy of the order is available at https://urlcurt.com/u?l=qwvM37
from PacerMonitor.com.
About Lucky Bucks, LLC
Headquartered in Norcross, Georgia, Lucky Bucks, LLC and affiliates
are digital skill-based coin-operated amusement machine route
operators based in and incorporated under the laws of the state of
Georgia.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 23-10758) on June 9, 2023.
In the petition signed by James Boyden, executive vice president,
the Debtor disclosed up to $500 million in assets and up to
$1billion in liabilities. As of the Petition Date, the Debtors
have outstanding funded debt obligations in the aggregate principal
amount of $610 million.
Judge Karen B. Owens oversees the case.
Dennis F. Dunne, Esq., and Tyson Lomazow, Esq., at Milbank LLP; and
Russell C. Silberglied, Esq., at Richards, Layton & Finger P.A.,
represent the Debtor as legal counsel. Evercore Group L.L.C. serves
as the Debtors' investment banker. M3 Advisory Partners, L.P.
serves as the Debtors' financial advisor. Epiq Corporate
Restructuring, LLC serves as the Debtors' claims and noticing
agent.
MAGENTA BUYER: S&P Alters Outlook to Negative, Affirms 'B-' ICR
---------------------------------------------------------------
S&P Global Ratings revised its outlook on Magenta Buyer LLC to
negative from stable and affirmed its 'B-' issuer credit rating.
The negative outlook is driven by declining revenues and weaker
financial metrics in fiscal 2023. S&P expects S&P Global
Ratings-adjusted leverage to be about 10x and free operating cash
flow (FOCF) to debt of -3% to -4% for fiscal year 2023.
Magenta Buyer's financial metrics will be weaker in 2023.The
company provided a revised budget for fiscal 2023 following a weak
first-quarter 2023. S&P now expects revenues to be down 7% in
fiscal 2023. S&P also expects S&P Global Ratings-adjusted leverage
of 10x and FOCF of negative $150 million for fiscal 2023. Its
first-quarter cash flow burn of $150 million was driven by delays
in TSA system cutovers, continued transition to ACV contracts
(which is mostly complete), annual bonus payments, and continued
standup and restructuring costs. S&P's base case assumes cash burn
in the second and third quarters, followed by FOCF generation in
fourth-quarter 2023.
S&P said, "We expect Magenta Buyer's 2024 metrics to improve,
primarily driven by synergies. Given that Magenta Buyer hasn't been
a growing business, the company's guidance of low single digit ARR
growth is a positive in our view. The company's previously actioned
cost savings plus an additional $95mm of new identified cost
savings has the potential to meaningfully improve profitability
once the savings are completely captured. For fiscal 2024, we
expect S&P Global Ratings-adjusted EBITDA margins to improve to
above 30%, with leverage of about 8x and FOCF to debt of 1%.
"The negative outlook on Magenta Buyer is driven by declining
revenues and weaker financial metrics in fiscal 2023. We expect its
S&P Global Ratings-adjusted leverage to be about 10x and FOCF to
debt to be negative 3% to negative 4% for fiscal year 2023.
"We could lower our rating on Magenta Buyer to 'CCC+' if the
company faces revenue declines due to increasing competition and
pricing pressure in its core security offerings such that FOCF
continues to be negative and we view its capital structure as
unsustainable."
S&P could revise the outlook to stable if the company completes its
restructuring plans, improves its profitability, and sustains the
following metrics:
-- S&P Global Ratings-adjusted leverage below 8x; and
-- Reported FOCF to debt of 2% or better.
ESG credit indicators: E-2, S-2, G-3
S&P said, "Governance factors are a moderately negative
consideration in our credit rating analysis of the company, as is
the case for most rated entities owned by private-equity sponsors.
We believe Magenta Buyer's highly leveraged financial risk profile
points to corporate decision-making that prioritizes the interests
of the controlling owners. This also reflects the generally finite
holding periods and a focus on maximizing shareholder returns."
MOVIA ROBOTICS: Plan Exclusivity Period Extended to August 16
-------------------------------------------------------------
The Hon. James J. Tancredi of the U.S. Bankruptcy Court for the
District of Connecticut extended Movia Robotics, Inc.'s exclusive
period within which to file a plan of reorganization and disclosure
statement to August 16, 2023.
As reported by the Troubled Company Reporter, the Debtor claims
that while its bankruptcy case is not extraordinarily complex,
additional time is necessary to prepare and negotiate a plan of
reorganization or, more likely, a plan of liquidation. The Debtor
is working with its largest lenders in an effort to preserve the
value of its assets and ensure that the value (economic and social)
of its intellectual property is preserved in either a sale or a
reorganization.
Less than four months have elapsed since the commencement of this
case, and Movia is not seeking an extension of the exclusivity
period to pressure pre-petition creditors. Rather, Movia seeks an
extension to finalize its discussions with its creditors.
The Debtor is represented by:
Timothy D. Miltenberger, Esq.
COHN BIRNBAUM & SHEA, P.C.
CityPlace II, 15th Floor
185 Asylum Street
Hartford, CT 06103
Telephone: (860) 493-2200
E-mail: Tmiltenberger@cbshealaw.com
About Movia Robotics, Inc.
Movia Robotics, Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Conn. Case No. 23-20024) on January 18,
2023. In the petition signed by Timothy Gifford, president, the
Debtor disclosed up to $10 million in both assets and liabilities.
Judge James J. Tancredi oversees the case.
Timothy D. Miltenberger, Esq., at Cohn Birnbaum & Shea, P.C.,
represents the Debtor as legal counsel.
NAPA MANAGEMENT: $610M Bank Debt Trades at 30% Discount
-------------------------------------------------------
Participations in a syndicated loan under which NAPA Management
Services Corp is a borrower were trading in the secondary market
around 69.9 cents-on-the-dollar during the week ended Friday, June
16, 2023, according to Bloomberg's Evaluated Pricing service data.
The $610 million facility is a Term loan that is scheduled to
mature on February 18, 2029. About $0.0 million of the loan is
withdrawn and outstanding.
NAPA Management Services Corporation offers practice management
services. The Company provides accounting, billing, consulting,
medical personnel contracting, healthcare analyzes, financing,
human resources, information technology, insurance, marketing, and
operational support services.
NEP EUROPE: Fitch Alters Outlook on 'B-' LongTerm IDR to Stable
---------------------------------------------------------------
Fitch Ratings has assigned a 'B-' Long-Term Issuer Default Rating
(IDR) to NEP Group Holdings, Inc. Fitch has also affirmed the IDRs
of related entities at 'B-', upgraded first lien issue ratings to
'B+'/'RR2' from 'B'/'RR3' and affirmed second lien issue ratings at
'CCC'/'RR6'. NEP Group Holdings, Inc. is being assigned a Stable
Outlook while existing IDRs have been revised to Stable from
Positive.
The Outlook revision to Stable reflects Fitch's view that NEP's
business model could result in higher than anticipated capex needs,
which could create potential liquidity shortfalls and impact NEP's
ability to refinance upcoming maturities. However, Fitch believes
NEP has sufficient liquidity to cover an expected FCF shortfall in
FY 2023, including availability under its revolving and capital
lease financing facilities and committed unused equity capacity.
Fitch also expects FCF to be roughly flat in 2024 due to lower than
expected capex requirements.
KEY RATING DRIVERS
Liquidity: NEP has significant near-term cash requirements to fund
capex for recently secured long-term production contracts. The
revenue from these contracts are expected to materialize in FY2023
and FY2024, creating a temporary timing mismatch between upfront
capex and revenue receipts. This mismatch is consistent with the
company's success-based business model.
Due to elevated capex needs in FY2023, Fitch is forecasting
negative FCF of approximately $140 million-$150 million. As of
March 31, 2023, NEP had $54 million in cash, approximately $51
million (net of outstanding letters of credit) available under its
$250 million revolver along with additional capacity under a
secured capital lease financing facility and committed equity
availability. Although the company has not publicly disclosed the
quantum of these additional sources of liquidity, Fitch believes
they are sufficient to cover the FCF shortfall in FY2023. The
company has guided to significantly less capex requirements in
FY2024 which should result in neutral to positive FCF for that
year.
Refinancing and Interest Rate Visibility: Approximately 80% of
NEP's outstanding $2.4 billion debt matures in 2025. Fitch views
this as a significant but manageable risk due to the stability of
the company's business model in typical economic cycles. Management
believes NEP is on track to meet its revenue and EBITDA targets for
FY2023 and FY2024, which should position it well for refinancing
discussions.
In order to manage rising interest rates and market volatility, NEP
has hedged approximately 90% and 76% of its first lien term loan
for 2023 and 2024, respectively. According to management, this will
result in a weighted average base rate of 3.1% for 2023 and 4.0%
for 2024.
Improving Leverage: NEP's Fitch-calculated leverage has improved
significantly since peaking at 13.2x at Sept. 30, 2020 due to the
pandemic. As of March 31, 2023, Fitch-calculated pro forma
leverage, including annualized acquisitions and new contracts, was
approximately 7.4x, in line with Fitch's expectations. Although
management guided to a medium-to-longer term net leverage target of
5.0x, they have historically prioritized global expansion through
inorganic growth.
Fitch recognizes any future acquisition activity may slow the
company's deleveraging plan as debt repayment is a secondary goal.
However, Fitch expects leverage metrics to improve over the rating
horizon given the company's history of post-acquisition delevering
through EBITDA growth.
Expected Cost Efficiencies: NEP has launched a cost savings program
to achieve approximately $100 million in cash flow improvement by
FY2024. The targeted savings will be achieved via business-unit
restructuring, efficient management of third-party procurement
spend and strategic pricing initiatives.
Significant Leading Market Position: Fitch's ratings incorporate
NEP's position as the largest global outsourced provider of
production solutions for broadcasts and live events. NEP provides
the broadcast equipment, post production, video display and
software-based creative technology to the largest live sports and
entertainment events including the NFL, ESPN, Super Bowl,
Wimbledon, The Grammys and the Oscars. The company's broadcast
division reported key wins with MLS, Apple, PGA, LIV Golf and
NASCAR. NEP's asset and global client base drives their competitive
advantage. The company estimates its broadcast services segment is
significantly larger than the next largest competitor, however, is
of similar size to peers operating in the live events space.
Capital Intensive Nature: NEP has historically operated at a
capital intensity level of 15%-20%. Most capex is success-based and
is tied to revenue and cash flow growth. Upfront capex is required
at contract signing and the company targets a payback period of two
years for live events and four years for broadcast services. While
the company generally depreciates assets over a six- to seven-year
period, it is able to repurpose equipment past its depreciable
asset life for second- and third tier events. Fitch also expects
the company to continue to invest internally in its other
segments.
Strong Revenue and Cash Flow Visibility: A significant portion of
NEP's revenues are derived from contracts generally ranging from
three to 10 years with price escalators and "take or pay"
arrangements. The contracts are all event-based and cover recurring
specific events. Longer-term sports contracts tend to be
co-terminus with a network's sport broadcast rights, while live
events are shorter term. The contractual nature of revenues
provides strong visibility and stability of future cash flows.
Management stated that approximately 90% of the broadcast segment's
FY2023 EBITDA budget is contracted.
NEP does not receive payment on its contracts until after its
services have been provided. The company is considering a policy
change to receive some upfront payments to support initial capex
spend.
Acquisition Strategy: NEP's growth strategy focuses primarily on
strategic acquisitions to expand its global footprint, targeting
market leaders to penetrate new markets and bolt-ons to expand
existing services. NEP created its Virtual Studios segment in
August 2021 with the acquisitions of Prysm Collective, a
post-production company, Lux Machina, a virtual production
specialist, and Halon Entertainment, visualization specialists. In
November 2021, NEP expanded its live event audio-visual service
offerings into Norway and Sweden with the acquisition of the Bright
Group of companies.
Large and Growing End Markets: NEP focuses on the sports and
entertainment markets, both of which have demonstrated consistent
growth, excluding exogenous shocks. Live sports programming remains
one of the few opportunities generating large "appointment" viewing
audiences in an increasingly fragmented media landscape. As a
result, the values for sports rights has continued to increase, as
seen in last year's announcement of the MLS Season Pass agreement
between Apple and MLS valued at $2.5 billion.
NEP expects 2024 to be a record year due to major events such as
the Paris Olympics, the U.S. Elections and the UEFA European
Championship. Lastly, the Virtual Studios segment allows NEP to
meet the growing demand for global virtual production capabilities
and expertise with industry leading offerings.
Parent-Subsidiary Linkage: Fitch links the IDRs of NEP Group
Holdings, Inc., NEP Group, Inc., NEP/NCP Holdco, Inc., NEP II, Inc.
and NEP Europe Finco B.V. in accordance with Fitch's criteria.
Strong legal, strategic and operational incentives equalize the
IDRs. NEP Group Holdings, Inc., is the filer of the group's
financial statements.
DERIVATION SUMMARY
NEP has no direct peers in Fitch's ratings universe. NEP's 'B-' IDR
is supported by the company's significant scale, high proportion of
contracted revenue, acquisition strategy, and limited FCF
generation.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer
- Fitch expects mid-teens growth in FY2023 driven primarily by
continued improvements in Broadcast Services (6%) and Live Events
segment (16%). Thereafter, Fitch expects consolidated single digit
revenue growth, driven by contract price escalators, increasing
value of sports broadcasting rights, and strong demand for live
entertainment. Fitch also expects revenue growth fluctuations based
on even-year special events such as the Summer and Winter
Olympics;
- Fitch expects EBITDA margins in the low 20 percent range;
- Fitch expects capex to decline by ~$90 million in FY2024, in line
with management's forecast; thereafter, capex should normalize to
~11% of revenue over the rating horizon;
- Fitch has forecasted tuck-in acquisitions over the forecast
period; Fitch forecasts NEP to resume larger-scale debt-funded
acquisition activity post 2026 once operations and credit metrics
have generally normalized;
- Fitch expects NEP to frequently borrow and repay borrowing on the
revolving due to the timing of cash outflows and inflows inherent
in the business model. Fitch also expects the revolver and term
loans to be extended before their respective maturities;
- Interest rate assumptions: three-month term SOFR with ARC spread
adjustments.
Recovery Analysis
The recovery analysis assumes that NEP would be reorganized as a
going-concern in bankruptcy rather than liquidated. Fitch has
assumed a 10% administrative claim.
Going-Concern (GC) Approach
The GC LTM EBITDA of $295 million contemplates insolvency resulting
from inadequate liquidity amid recessionary stress. In this
scenario, Fitch assumed that the company is unable to integrate the
large number of acquisitions into the business. Additionally, the
company is unable to renew its large contracts, ceding share to
competitors in the space, leading to depressed EBITDA and an
unsustainable capital structure. It also reflects Fitch's view of a
sustainable, post-reorganization EBITDA level upon which Fitch
bases the enterprise valuation (EV).
An EV multiple of 6.0x EBITDA is applied to the GC EBITDA to
calculate a post-reorganization enterprise value. The company's
platform acquisitions are transacted on average between 4.8x-6.0x,
while its smaller bolt-on acquisitions close in the range of
3.5x-4.5x. Most recently, HDR Group was acquired by NEP at 5.8x
EV/EBITDA in June 2019 and Aerial Video Systems at 4.4x in
September 2019. While the above transaction multiples are lower
than the 6.0x used for NEP, these targets operated on a smaller
scale with a less developed footprint than NEP.
The recovery analysis assumes that the full $250 million is drawn
on the first lien revolver. The recovery analysis implies a
'B+'/'RR2' rating with 72% recovery on the first lien senior
secured debt and a 'CCC'/'RR6' with no recovery on the senior
second lien secured debt.
RATING SENSITIVITIES
Factors That Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- EBITDA leverage sustained below 6.5x;
- Sustained positive FCF generation;
- CFO-Capex/total debt sustained near 2.5%.
Factors That Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- EBITDA Interest coverage sustained below 1.0x;
- Increasingly negative FCF;
- Fitch's view of heightened refinancing risk.
LIQUIDITY AND DEBT STRUCTURE
Liquidity: Due to elevated capex needs in FY2023, Fitch is
forecasting negative FCF of approximately $140 million-$150
million. As of March 31, 2023, NEP had $54 million in cash,
approximately $51 million (net of outstanding letters of credit)
available under its $250 million revolver along with additional
capacity under a secured capital lease financing facility and
committed equity availability. Although the company has not
publicly disclosed the quantum of these additional sources of
liquidity, Fitch believes they are sufficient to cover the FCF
shortfall in FY2023.
Per the credit agreement, the revolver size will reduce to
$245million in October 2023 until maturity in February 2025.
Debt: As of March 31, 2023, NEP had $2.4 billion in debt
outstanding; approximately 80% of NEP's outstanding debt matures in
2025. Fitch believes refinancing risk is relatively manageable due
to the stability of the business model in typical economic cycles.
NEP Group, Inc., NEP/NCP Holdco, Inc., NEP's main operating
subsidiary, and NEP II, created to facilitate revolver borrowings
to NEP Europe Finco B.V. (NEP Europe), are co-borrowers of the
first lien and second lien U.S. secured credit facilities. NEP
Europe is the borrower of the first lien secured Euro term loan.
Both the U.S. and Euro loans are guaranteed by NEP's domestic
subsidiaries while the Euro term loan is also guaranteed by NEP
Europe's subsidiaries organized in the U.K., Netherlands, Sweden
and Luxembourg. In addition, the Euro loans benefit from additional
collateral not available to the U.S. loans. However, the credit
agreement contains a collateral allocation mechanism that equalizes
both first lien lender groups' aggregate credit risk and recovery
in the event of a default. As such, the issue ratings are
equalized.
ISSUER PROFILE
NEP is the largest global outsourced provider of customized
broadcast solutions to live sports, entertainment and corporate
events and virtual production capabilities. NEP has been expanding
globally and has leading market positions in the U.S., U.K.,
Europe, Asia and Australia.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
NEP Group
Holdings, Inc. LT IDR B- New Rating
NEP/NCP Holdco, Inc. LT IDR B- Affirmed B-
senior secured LT B+ Upgrade RR2 B
Senior Secured
2nd Lien LT CCC Affirmed RR6 CCC
NEP II Inc LT IDR B- Affirmed B-
senior secured LT B+ Upgrade RR2 B
Senior Secured
2nd Lien LT CCC Affirmed RR6 CCC
NEP Group, Inc. LT IDR B- Affirmed B-
senior secured LT B+ Upgrade RR2 B
Senior Secured
2nd Lien LT CCC Affirmed RR6 CCC
NEP Europe Finco B.V. LT IDR B- Affirmed B-
senior secured LT B+ Upgrade RR2 B
NEXTPLAY TECHNOLOGIES: Mark Vange Quits as Chief Technology Officer
-------------------------------------------------------------------
Mark Vange resigned from his position as the chief technology
officer of NextPlay Technologies, Inc., according to a Form 8-K
filed by the Company with the Securities and Exchange Commission on
June 15, 2023.
The Company said Mr. Vange's resignation is not a result of any
disagreement with the Company on any matter relating to the
Company's operations, policies or practices, or any issues
regarding the Company's accounting policies or practices.
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.
NORTHLAND POWER: Fitch Gives BB+ Rating on Series 2023-A Sub. Notes
-------------------------------------------------------------------
Fitch Ratings has assigned a 'BB+' rating to Northland Power Inc.'s
green subordinated notes series 2023-A due 2083. Northland's Issuer
Default Rating (IDR) is 'BBB'. The Rating Outlook is Stable.
Northland plans to use the net proceeds from this issuance for
financing renewable energy projects.
The notes are eligible for 50% equity credit based on Fitch's
hybrid methodology, dated Nov. 12, 2020 titled "Corporates Hybrids
Treatment and Notching Criteria," available at
www.fitchratings.com. Features supporting the equity categorization
of these notes include their subordinated priority, the option to
defer interest payments on a cumulative basis for up to five-years
and a 60-year maturity.
KEY RATING DRIVERS
Development Risk Persists: Northland is highly exposed to political
risk, regulatory risk, and construction and permitting risk on
multiple projects in its development pipeline. In particular, two
offshore wind projects, Hai Long in Taiwan, and Baltic Power in
Poland, have experienced cost escalation mostly due to inflation
and supply chain issues. Total costs for both projects combined are
expected to be over CAD13 billion-CAD15 billion, which is CAD2
billion-CAD3 billion higher than initial expectations. Overall,
Fitch anticipates that Northland will require in excess of CAD2.2
billion to fund its share of these two plus other projects over the
next three years.
Funding needs are much larger than Northland's internally generated
funds and any cost increases could pressure returns. Baltic Power
has indexing mechanisms in its Euro-denominated contracts that
mitigate the impact of cost increases. At this time, further cost
escalation on these capital-intensive projects remains an ongoing
risk for the company, and failure to raise funding in a credit
supportive manner could result in a negative rating action.
Credit Friendly Growth Financing: Northland plans to utilize a mix
of non-recourse project financing at the assets (65%-70%), asset
sell-down contributions plus common equity (15%), partner's equity
(10%) and, to a lesser extent, corporate debt and pre-completion
revenue to finance its growth plans.
The company manages development risk by partnering with regional
players, locking in construction and material costs through
contractual provisions, and using project financing structures that
isolate risks associated with each project. The relatively low cash
from operations compared with the company's large capex needs
leaves limited room for operational underperformance or additional
debt financing at the corporate level.
Variability in Parent-Only Cash Flow Likely: Parent-level FFO
declined in 2022 by about 50% from 2021 levels due to a combination
of structural and operational reasons, including discontinuation of
operations at thermal asset Iroquois Falls, the bearing replacement
program at Nordsee One and refinancing the Spanish portfolio. Fitch
projects cashflows will recover to near 2021 levels for the full
year 2023.
This trend of volatility is likely to continue over the near term,
stabilizing at higher levels once Hai Long and Baltic Power start
contributing steady distributions, expected in 2026-2027. The cash
distributions from the EU projects and Colombian utility are
stabilized against foreign-exchange risk by Northland's foreign
currency hedges, which account for a majority of the expected
distributions.
Low HoldCo Leverage: Northland has strong credit metrics at the
HoldCo-level with leverage expected to be between 1.0x-2.0x in
2023-2026, as future growth and acquisitions are executed in a
credit supportive manner. These metrics are strong for the rating
and provide financial flexibility as the company continues to grow
and diversify its operations globally. Fitch calculates Northland's
credit metrics on a deconsolidated basis as its operating assets
are financed with non-recourse project debt.
Contracted Cashflows with Stable Counterparties: Northland derives
almost all of its cash flows from underlying power generation
projects, which are fully contracted with highly creditworthy
counterparties, resulting in strong cash flow visibility. The
weighted average remaining length of contract is about nine years
with an estimated average counterparty rating in the 'AA' category.
The contracts are largely set-up to match the term of the debt and
structured to fully pay off the debt at most projects.
The contract terms are structured as Power Purchase Agreements
(PPAs), Feed-In Tariffs, or Contracts for Differences, providing
steady and ratable earnings and cash flow. However, the company is
increasingly moving toward PPAs with corporate entities, which
Fitch believes could be weaker in credit quality with weaker
contractual terms, increasing the overall risk profile.
Smaller-Scale Diversified Asset Portfolio: Northland operates
around 3.0 GW, of which it owns 2.6 GW, of long-term contracted
generation capacity before any sell-downs located largely in North
America and Europe. The generation capacity is spread across 17
major assets, which includes several clusters of solar and onshore
wind facilities. In addition, the company owns an electric utility
in Colombia and a solar generation facility in Mexico, and is in
advanced stages of developments in Poland and Taiwan. Fitch
believes exposure to Colombia and Mexico is weaker than the rest of
the portfolio; however, this is expected to total less than 15% of
total distributions over the next three years.
The size of Northland's generation portfolio, as measured by GW of
capacity, is smaller than other rated peers in the 'BBB' category.
Additionally, Northland is exposed to concentration risk as the
company's top five projects are expected to account for just about
two thirds of distributions to HoldCo in 2023, which will moderate
marginally as additional projects come online over the forecast
period.
Investment-Grade Project Financings: Northland structures most of
its non-recourse project debt to meet the investment-grade
standard. All of Northland's major projects have a restricted
payment test based on a minimum debt service coverage ratio (DSCR).
The top-13 projects have shown strong financial performance with an
average DSCR of roughly 1.6x over the past four years. The
relatively conservative project level financing (including
interest-rate hedges) is a mitigating factor for parent-level
leverage.
Non-recourse borrowings are largely structured to be fully paid off
during the contracted period, reducing the refinancing risk. The
offtakers are comprised of government related entities and
utilities. Fitch estimates that the underlying projects would
likely have investment-grade ratings if rated.
DERIVATION SUMMARY
Fitch views Northland's rating as strongly positioned compared with
that of peer NextEra Energy Partners (NEP; BB+/Stable), but weaker
than Brookfield Renewable Energy Partners (BEP; BBB+/Stable).
Northland's leverage, at between 1.0x-2.0x for HoldCo-only FFO
Leverage over the next three years, is the strongest in the peer
group. BEP and NEP's HoldCo-only FFO Leverage are estimated to be
in the mid to high 3.0x range, and around 4.0x respectively,
through 2023.
The larger relative generation capacity at BEP and longer relative
remaining contract duration is only partially offset by higher
relative leverage, accounting for the one-notch difference between
the IDRs of BEP and Northland. Compared to NEP, Northland has lower
leverage and higher counterparty quality offsetting its smaller
size.
BEP and NEP each own 25.0 GW and 5.9 GW of generation capacity,
respectively, and are larger than Northland, which owns 2.6 GW of
generation. Each entity derives its cash flows from underlying
projects that are contracted. Northland's operating assets have a
weighted average contract life of about nine years, which is lower
than its peers. BEP and NEP each have average contracted lives of
14 years.
However, Northland's refinancing risks at the project level are
manageable as a majority of the project level debt is scheduled to
fully pay down during the term of the contracts. Counterparty
quality for Northland's assets is stronger than its peers with an
estimated average rating in the 'AA' category, though it is likely
to decline as the assets under development are increasingly
contracted with corporate PPAs, as compared with sovereign funding
mechanisms. Fitch estimates BEP and NEP have an average
counterparty profile of approximately 'AA-' and 'BBB+',
respectively.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within The Rating Case for the Issuer
Include:
- Fitch has used a P50 generation case for its rating case
production assumption;
- Additional equity used to fund the development of various
offshore wind facilities under development in line with
management's assumptions;
- Project financings required for construction of various
projects
are secured at terms in line with management's current
expectation;
- Acquisitions will be funded in a credit-friendly manner,
supported by equity issuance;
- None of the non-recourse project financing at the asset level
is treated as on-credit.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- A positive rating action is not anticipated in the near term,
given the company's size and scale. However, Fitch may take
positive rating action if size and scale were to increase
significantly, while FFO leverage at the Holding Co.,
defined as HoldCo-only debt to HoldCo FFO, was maintained
below 2.0x. Distribution payout is expected to be below 80%
and over 90% of cash flow continues to come from fully
contracted projects.
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Material increase in development costs and/or delays in the
project timelines;
- Failure to achieve financial close at Hai Long or Baltic
Power in 2023, under credit supportive terms;
- Inability to execute non-recourse project financings, asset
sales or equity issuances to fund growth such that Northland
has to deviate from the forecast capital structure;
- FFO Leverage at the Holding Co. above 3.0x on a sustained
basis;
- A material increase in the concentration of earnings and cash
flows from emerging market economies;
- A decline in the percentage of contracted cash flows below 75%,
leading to greater cashflow volatility.
LIQUIDITY AND DEBT STRUCTURE
Adequate Liquidity: As of March 31, 2023, a CAD1.0 billion
syndicate revolving facility is currently undrawn, and has CAD505.7
million available net of letters of credit issuances, and roughly
CAD74 million of corporate cash on hand. The syndicated revolving
facility matures in September 2027. As of March 31, 2022, the
company also has a CAD150.0 million bilateral credit facility with
CAD13.2 million available and a CAD300.0 million Export Credit
Agency-backed letter of credit facility with CAD183.8 million
available, each net of letters of credit issuance. The bilateral
facility expires in September 2024 and the ECA-backed facility
expires in March 2025.
The syndicated revolving facility has two financial covenants: (i)
leverage based on net NPI debt to adjusted EBITDA with a maximum of
4.50x, and (ii) interest coverage with a minimum of 3.0x. As of
March 31, 2023, the company was in compliance with its covenants,
and Fitch expects it to remain compliant over the near term.
Northland's corporate level debt consists primarily its CAD144.8
million preferred shares, to which Fitch ascribes 50% equity
credit. As of March 31, 2023, approximately 98% of Northland's
consolidated debt was non-recourse project debt.
ISSUER PROFILE
Northland is an independent power producer based in Ontario,
Canada. It is a developer, builder, owner, and operator of natural
gas and sustainable generation assets, particularly offshore wind,
where it is a leading global owner as measured by existing
production capacity.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
Entity/Debt Rating
----------- ------
Northland Power Inc.
Subordinated LT BB+ New Rating
NOVABAY PHARMACEUTICALS: All 3 Proposals Passed at Annual Meeting
-----------------------------------------------------------------
NovaBay Pharmaceuticals, Inc. held its 2023 Annual Meeting at which
the Company's stockholders:
(1) elected Mijia (Bob) Wu and Dr. Yenyou (Jeff) Zheng as Class
I directors nominated by the Company's Board of Directors to hold
office for a term of three years or until their respective
successors are elected and qualified;
(2) ratified the appointment by the Company's Audit Committee of
WithumSmith+Brown, PC as the Company's independent registered
public accounting firm for the fiscal year ending Dec. 31, 2023;
and
(3) approved the issuance of an aggregate of 7,615,392 shares of
common stock upon (i) the conversion of the $3.3 million aggregate
principal amount Original Issue Discount Senior Secured Convertible
Debentures due Nov. 1, 2024 and (ii) the exercise of certain
long-term warrants and short-term warrants, including any
additional shares of common stock due to an increase as a result of
applicable anti-dilution adjustments or the monthly redemption of
the Debentures.
About Novabay
Headquartered in Emeryville, California, NovaBay Pharmaceuticals,
Inc. -- http://www.novabay.com-- develops and sells scientifically
created and clinically proven eyecare and skincare products.
NovaBay's leading product, Avenova Antimicrobial Lid & Lash
Solution, is often prescribed by eyecare professionals for
blepharitis and dry-eye disease and is also available directly to
eyecare consumers through online distribution channels such as
Amazon. DERMAdoctor offers more than 30 OTC
dermatologist-developed skincare products through the DERMAdoctor
website, well-known traditional and digital beauty retailers, and
international distributors. NovaBay also manufactures and sells
effective, yet gentle and non-irritating wound care products.
Novabay reported a net loss of $10.61 million for the year ended
Dec. 31, 2022, a net loss and comprehensive loss of $5.82 million
for the year ended Dec. 31, 2021, a net loss and comprehensive loss
of $11.04 million for the year ended Dec. 31, 2020, a net loss and
comprehensive loss of $9.66 million for the year ended Dec. 31,
2019, and a net loss and comprehensive loss of $6.54 million for
the year ended Dec. 31, 2018.
San Francisco California-based WithumSmith+Brown, PC, the Company's
auditor since 2010, issued a "going concern" qualification in its
report dated March 31, 2023, citing that the Company has a history
of recurring losses and negative cash flows from operations that
raise substantial doubt about its ability to continue as a going
concern.
OCYAN SA: Completes $2.7-Billion Cross-Border Restructuring
-----------------------------------------------------------
Davis Polk advised Ocyan S.A and certain of its subsidiary project
companies in connection with the consensual cross-border
restructuring of approximately $2.7 billion of indebtedness, which
closed on June 7, 2023. The restructuring, which was implemented
through a recuperacao extrajudicial (EJ) proceeding, was previously
approved by the 4th Business Court of the Judicial District of Rio
de Janeiro, Brazil, on March 20, 2023, and subsequently recognized
in the United States under chapter 15 of the U.S. Bankruptcy Code
on May 4, 2023, in a proceeding before the United States Bankruptcy
Court for the Southern District of New York.
The effectiveness of the EJ restructuring plan marks the final step
in the project companies' comprehensive cross-border debt and
organizational restructuring of Ocyan's drilling business. The key
outcomes of the restructuring include: (a) reducing the drilling
business's debt by approximately $2.4 billion to approximately $300
million; (b) extending debt maturities and providing an
approximately $197 million new money investment; (c) enhancing
liquidity and operating flexibility for continued growth and
monetization of the project companies' well-invested oil and gas
assets; and (d) effectuating an organizational restructuring of the
drilling business, which will continue to be led by former officers
of Ocyan.
Similarly, the restructuring will result in significant
deleveraging of Ocyan's balance sheet through the elimination of
approximately $2.7 billion in indebtedness. The restructuring is
intended to allow each of Ocyan and the project companies to
enhance its liquidity, strengthen its short- and long-term
financial position and take advantage of opportunities available in
the oil and gas industry. In addition, Ocyan will focus on the
continued development of its operations in floating production
storage and offloading units ("FPSOs"), and subsea and offshore
maintenance services. Ocyan will retain a 6.5% equity stake in
DrillCo (as defined below) on account of its pre-EJ interests, and
a seat on DrillCo's board of directors.
As consideration in the restructuring, the project companies' old
notes were exchanged for a combination of consideration consisting
of cash, equity in a new Luxembourg-domiciled holding company
("DrillCo") to which the reorganized drilling business (including
the equity in the project companies) was transferred, new unsecured
notes in a new Luxembourg-domiciled holding company ("ConvertCo")
and $300 million of new senior secured notes due 2030 issued by
DrillCo.
Ocyan is a Brazilian company with over 45 years of experience in
the oil and gas industry. Ocyan acts in the key offshore segments,
from production to offshore maintenance and subsea services.
The Davis Polk corporate team includes partner Manuel Garciadiaz,
counsel Drew Glover and James Vickers and associates Matt Weaver
and Luis Felipe Sousa. The restructuring team includes partner Eli
J. Vonnegut, counsel Joanna McDonald and associate Matthew B.
Masaro. The tax team includes counsel Tracy L. Matlock and
associate Tyler Scheiner. Members of the Davis Polk team are based
in the New York, Northern California and São Paulo offices.
Davis Polk refers to Davis Polk & Wardwell LLP, a New York limited
liability partnership, and its associated entities.
OUTPUT SERVICES: $180.3M Bank Debt Trades at 62% Discount
---------------------------------------------------------
Participations in a syndicated loan under which Output Services
Group Inc is a borrower were trading in the secondary market around
38.4 cents-on-the-dollar during the week ended Friday, June 16,
2023, according to Bloomberg's Evaluated Pricing service data.
The $180.3 million facility is a Term loan that is scheduled to
mature on June 27, 2026. The amount is fully drawn and
outstanding.
Output Services Group, Inc. offers printing services.
OUTPUT SERVICES: $369.8M Bank Debt Trades at 67% Discount
---------------------------------------------------------
Participations in a syndicated loan under which Output Services
Group Inc is a borrower were trading in the secondary market around
33.1 cents-on-the-dollar during the week ended Friday, June 16,
2023, according to Bloomberg's Evaluated Pricing service data.
The $369.8million facility is a Term loan that is scheduled to
mature on June 27, 2026. The amount is fully drawn and
outstanding.
Output Services Group, Inc. offers printing services.
PACIFIC GREEN: Inks Deal to Sell 100% of PGBEP1 Shares for US$93M
-----------------------------------------------------------------
Pacific Green Technologies, Inc. announced that it has entered into
a sale and purchase agreement to sell 100% of the shares in Pacific
Green Battery Energy Parks 1 Limited (PGBEP1) to Sosteneo Fund 1
HoldCo S.a.r.l. for GBP74 million (US$93 million).
PGBEP1 is the holding company for 100% subsidiary, Richborough
Energy Park Limited, Pacific Green's 99MW battery energy storage
system at Richborough Energy Park which begins operations later
this summer.
Under the terms of the Agreement, the consideration is payable
pursuant to operational milestones related to the battery park as
it connects to the grid and becomes operational. Pacific Green
will receive an advance of GBP20m upon signing of the Agreement
with an anticipated completion over the following weeks.
About Pacific Green Technologies
Pacific Green Technologies, Inc. is focused on addressing the
world's need for cleaner and more sustainable energy. The Company
offers Battery Energy Storage Systems and Concentrated Solar Power
energy solutions to compliment its marine environmental
technologies division.
Pacific Green reported a net loss of $10.75 million for the year
ended March 31, 2022, compared to a net loss of $1.81 million for
the year ended March 31, 2021, and a net loss of $10.38 million for
the year ended March 31, 2020. As of June 30, 2022, the Company had
$32.03 million in total assets, $16.34 million in total
liabilities, and $15.68 million in total equity.
PALADIN REINSURANCE: Enters Into Commutation Plan
-------------------------------------------------
Paladin Reinsurance Corporation advises all creditors that it is
entering into a commutation plan under Section 1321(b) of the New
York Insurance Law and Department Regulation 141 (11 NYCRR Section
128).
Any person who has and can provide details of a claim against the
estate should mail by July 14, 2023, details of their claims to
commutation@paladinreinsurance.com.
Paladin Reinsurance Corporation offers reinsurance services.
PAZZO PAZZO: Cook Discusses Commercial Lease Termination
--------------------------------------------------------
In his recent article for Commercial Leasing Law & Strategy titled
"Third Circuit: Pre-Bankruptcy Commercial Lease Termination Not
Fraudulent Transfer," SRZ of counsel Michael L. Cook discusses
pre-bankruptcy commerical lease termination in cases In re Pazzo
Pazzo Inc. and In re Great Lakes Quick Lube L.P.
Is an insolvent debtor's pre-bankruptcy termination of a commercial
lease a fraudulent transfer? The Third Circuit said no when it held
that a lessor's pre-bankruptcy termination of the debtors' lease
and purchase option "was not a transfer under Bankruptcy Code Sec.
548(a)(1)(B)." In re Pazzo Pazzo Inc., 2022 WL 17690158 (3d Cir.
Dec. 15, 2022). But the Seventh Circuit held that a Chapter 11
debtor's pre-bankruptcy "surrender of [two] . . . leases to [its
landlord] could be regarded as a preferential [or fraudulent]
transfer." In re Great Lakes Quick Lube L.P., 816 F.3d 482 (7th
Cir. 2016). Reversing the bankruptcy court's holding that "the
terminations were [not] transfers, . . . preferential or
fraudulent," the Seventh Circuit stressed that the debtor's
termination of its "interest in property -- . . . the leaseholds --
which it parted with by transferring that interest to [the
landlord]," fell within the broad definition of "transfer" in the
Bankruptcy Code (Code). Id. at 485. A close reading of both Pazzo
and Great Lakes, however, shows that the circuits are not split,
and that the reasoning of both courts can be reconciled on their
facts.
About Pazzo Pazzo
Pazzo Pazzo Inc., filed a Chapter 11 bankruptcy petition (Bankr.
D.N.J. Case No. 18-13516) on Feb. 23, 2018, estimating under $1
million in assets and liabilities. Lawrence Berger, Esq., at
Berger & Bornstein, LLC, was the Debtor's counsel.
PGX HOLDINGS: U.S. Trustee Appoints Creditors' Committee
--------------------------------------------------------
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Chapter 11 cases of PGX
Holdings, Inc. and its affiliates.
The committee members are:
1. Hawthorne Direct, LLC
dba Hawthorne Advertising
Attn: Steve Jurgensen
101 N. Court Street
Fairfield, IA 52556
Phone: 310-844-9385
Fax: 641-954-7207,
Email: sjurgensen@hawthorneadvertising.com
2. Site Selection Group, LLC
Attn: King White
8235 Douglas Ave, Suite 500
Dallas, TX, 75225
Phone: 214-271-0582
Email: kwhite@siteselectiongroup.com
3. Argano, LLC
Attn: Elizabeth Frederic
6100 W. Plano Parkway, Suite 1800
Plano, TX 75093
Phone: 859-250-0086
Email: Elizabeth.frederic@argano.com
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About PGX Holdings
PGX Holdings, Inc., and affiliates are credit repair service
providers, helping customers repair their credit and achieve their
credit goals. PGX Holdings helps 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.
PGX Holdings, Inc., and its affiliates, including John C. Heath,
Attorney At Law PC, sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Lead Case No. 23-10718) on June 4,
2023. In the petition signed by Chad Wallace, chief executive
officer and president, the Debtor disclosed up to $500 million in
assets and up to $10 billion in liabilities.
Judge Craig T. Goldblatt oversees the case.
Kirkland and Ellis LLP, is the Debtors' bankruptcy counsel, Klehr
Harrison Harvey Branzburg LLP is the local bankruptcy counsel, and
Landis Rath and Cobb is the conflicts counsel. Alvarez & Marsal
North America, LLC is the financial advisor, and Greenhill and Co.,
LLC, is the investment banker. Kurtzman Carson Consultants LLC is
the notice and claims agent.
PHILUX GLOBAL: Unit Cancels Investment Deal With Saigon Silicon
---------------------------------------------------------------
Philux Global Vietnam Investment and Development Co. Ltd., a
subsidiary of Philux Global Group Inc. (formerly known as PHI
Group, Inc.), and Saigon Silicon City JSC signed an Agreement to
terminate the Investment Commitment Agreement previously entered
into by the two parties on Feb. 21, 2023 in its entirety, as
disclosed by Philux in a Form 8-K filed with the Securities and
Exchange Commission.
About PHI Group
Headquartered in Irvine, California, PHI Group, Inc. (now known as
Philux Global Group Inc.) is primarily engaged in mergers and
acquisitions, advancing PHILUX Global Funds, SCA, SICAV-RAIF, a
"Reserved Alternative Investment Fund" under the laws of
Luxembourg, and establishing the Asia Diamond Exchange in Vietnam.
Besides, the Company provides corporate finance services, including
merger and acquisition advisory and consulting services for client
companies through its wholly owned subsidiary PHILUX Capital
Advisors, Inc. (formerly PHI Capital Holdings, Inc.) and invests in
selective industries and special situations aiming to potentially
create significant long-term value for the Company's shareholders.
PHILUX Global Funds intends to include a number of sub-funds for
investment in select growth opportunities in the areas of
agriculture, renewable energy, real estate, infrastructure, and the
Asia Diamond Exchange in Vietnam.
PHI Group reported a net loss of $21.15 million for the year ended
June 30, 2022, compared to a net loss of $6.55 million for the year
ended June 30, 2021. As of March 31, 2023, the Company had
$319,865 in total assets, $8.61 million in total liabilities, and a
total stockholders' deficit of $8.28 million.
Bangalore, India-based M.S. Madhava Rao, the Company's auditor,
issued a "going concern" qualification in its report dated Jan. 13,
2023, citing that Company has an accumulated deficit of $71,717,973
and had a negative cash flow from operations amounting to
$1,545,570 for the year ended June 30, 2022. These factors raise
substantial doubt about the Company's ability to continue as a
going concern.
PLOURDE SAND: Exclusivity Period Extended to June 29
----------------------------------------------------
The Hon. Bruce A. Harwood of the U.S. Bankruptcy Court for the
District of New Hampshire extended Plourde Sand & Gravel Co.,
Inc.'s exclusive period to file a Chapter 11 plan of reorganization
to June 29, 2023.
The 180-day exclusive period for the confirmation of a plan of
reorganization filed by the Debtor during the exclusive filing
period is extended to August 28, 2023.
As reported by the Troubled Company Reporter, the Debtor explained
that it encountered a number of challenges early in this case. The
Debtor had to find, negotiate and purchase policies of property
damage and general liability insurance on an expedited basis. The
lack of liability insurance limited the ability of the Debtor to
deliver products to customers and as a result, the Debtor lost
sales.
The Debtor also believed the public accounting firm of Hession &
Pare would assist the Debtor if the Debtor could pay for its
services going forward. The Declaration of General Manager Dawn
Plourde explains her belief that HP CPA would assist the Debtor
until the Debtor's Counsel telephoned Thomas Pare, of HP CPA, on
April 20, 2023. In that conversation, Mr. Pare told the Debtor's
Counsel that HP CPA would not provide any services to the Debtor
due to staffing shortages and other commitments.
The Debtor is represented by:
William S. Ganon, Esq.
WILLIAM S. GANNON PLLC
740 Chestnut Street
Manchester, NH 03104
Telephone: (603) 621-0833
Facsimile: (603) 621-0830
E-mail: bgannon@gannonlawfirm.com
About Plourde Sand & Gravel Co., Inc.
Plourde Sand & Gravel Co., Inc. owns eight properties located in
New Hampshire having an aggregate total value of $5.34 million.
Plourde Sand filed for Chapter 11 bankruptcy protection (Bankr.
D.N.H. Case No. 23-10039) on Jan. 30, 2023. In the petition signed
by Daniel O. Plourde, sole shareholder and vice president, the
Debtor disclosed $9,192,623 in assets and $8,072,411 in
liabilities.
Judge Bruce A. Harwood oversees the case.
William S. Gannon PLC, is the Debtor's legal counsel.
PRECIPIO INC: All Three Proposals Passed at Annual Meeting
----------------------------------------------------------
Precipio, Inc. convened its Annual Meeting of stockholders at which
the stockholders:
1. elected Richard Sandberg, Douglas Fisher, M.D. and Jeffrey
Cossman, M.D. as Class II directors for terms to expire in 2026;
2. ratified the appointment of Marcum LLP as the Company's
independent registered public accounting firm for the year ending
Dec. 31, 2023;
3. authorized the Company's Board of Directors, in its
discretion, to amend the Company's Third Amended and Restated
Certificate of Incorporation to effect a reverse stock split at a
ratio not less than 1-for-2 and not greater than 1-for-30 at any
time prior to the one-year anniversary of the date on which the
reverse stock split is approved by the Company's stockholders at
the Annual Meeting without further approval or authorization of its
stockholders and with its Board of Directors able to elect to
abandon such proposed amendment and not effect the reverse stock
split authorized by stockholders, in its sole discretion, and, in
connection therewith, to decrease the number of authorized shares
of its common stock on a basis proportional to the reverse stock
split ratio.
About Precipio
Omaha, Nebraska-based Precipio, Inc., formerly known as
Transgenomic, Inc. -- http://www.precipiodx.com-- is a healthcare
solutions company focused on cancer diagnostics. Its business
mission is to address the pervasive problem of cancer misdiagnoses
by developing solutions to mitigate the root causes of this problem
in the form of diagnostic products, reagents and services.
Precipio reported a net loss of $12.18 million in 2022, a net loss
of $8.52 million in 2021. As of Dec. 31, 2022, the Company had
$21.50 million in total assets, $5.14 million in total liabilities,
and $16.37 million in total stockholders' equity.
New Haven, CT-based Marcum LLP, the Company's auditor since 2016,
issued a "going concern" qualification in its report dated March
30, 2023, citing that the Company has incurred significant losses
and needs to raise additional funds to meet its obligations and
sustain its operations. These conditions raise substantial doubt
about the Company's ability to continue as a going concern.
PUERTO RICO: PREPA at Risk of Moving July 2023 Debt Plan Hearing
----------------------------------------------------------------
Michelle Kaske of Bloomberg News reports that negotiations between
Puerto Rico's bankrupt power utility and a group of bondholders
have stalled again, as next month's, July 2023, confirmation
hearing on a debt-cutting proposal is at risk of being delayed.
Formal talks between Puerto Rico's Electric Power Authority, the
island's main supplier of electricity, an ad hoc group of
bondholders and bond insurance companies have stopped after the
parties met in person on May 22 and May 23, 2023 the mediation team
overseeing the negotiations said in a court filing Tuesday, June
13, 2023.
About Puerto Rico
Puerto Rico is a self-governing commonwealth in association with
the United States. The chief of state is the President of the
United States of America. The head of government is an elected
Governor. There are two legislative chambers: the House of
Representatives, 51 seats, and the Senate, 27 seats. The
governor-elect is Ricardo Antonio "Ricky" Rossello Nevares, the son
of former governor Pedro Rossello.
In 2016, the U.S. Congress passed PROMESA, which, among other
things, created the Financial Oversight and Management Board and
imposed an automatic stay on creditor lawsuits against the
government, which expired May 1, 2017.
The members of the oversight board are: (i) Andrew G. Biggs, (ii)
Jose B. Carrion III, (iii) Carlos M. Garcia, (iv) Arthur J.
Gonzalez, (v) Jose R. Gonzalez, (vi) Ana. J. Matosantos, and (vii)
David A. Skeel Jr.
On May 3, 2017, the Commonwealth of Puerto Rico filed a petition
for relief under Title III of the Puerto Rico Oversight,
Management, and Economic Stability Act ("PROMESA"). The case is
pending in the United States District Court for the District of
Puerto Rico under case number 17-cv-01578. A copy of Puerto Rico's
PROMESA petition is available at
http://bankrupt.com/misc/17-01578-00001.pdf
On May 5, 2017, the Puerto Rico Sales Tax Financing Corporation
(COFINA) commenced a case under Title III of PROMESA (D.P.R. Case
No. 17-01599). Joint administration has been sought for the Title
III cases.
On May 21, 2017, two more agencies -- Employees Retirement System
of the Government of the Commonwealth of Puerto Rico and Puerto
Rico Highways and Transportation Authority (Case Nos. 17-01685 and
17-01686) -- commenced Title III cases.
U.S. Chief Justice John Roberts named U.S. District Judge Laura
Taylor Swain to preside over the Title III cases.
The Oversight Board has hired as advisors, Proskauer Rose LLP and
O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic
consultant, Citigroup Global Markets as municipal investment
banker, and Ernst & Young, as financial advisor.
Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M.
Abelson, Esq., of Proskauer Rose LLP; and Hermann D. Bauer, Esq.,
at O'Neill & Borges LLC are onboard as attorneys.
Prime Clerk LLC is the claims and noticing agent. Prime Clerk
maintains the case web site
https://cases.primeclerk.com/puertorico
Jones Day is serving as counsel to certain ERS bondholders.
Paul Weiss is counsel to the Ad Hoc Group of Puerto Rico General
Obligation Bondholders.
PUERTO RICO: PREPA Bondholders Want Higher Claims in Bankruptcy
---------------------------------------------------------------
Robert Slavin of The Bond Buyer reports that a lawyer for the
Puerto Rico Electric Power Authority bondholders argued Thursday,
June 8, 2023, that if a receiver had been in place early on in the
PREPA bankruptcy process, they would have controlled him or her and
therefore raised rates to repay bonds in full.
Assured Guaranty Attorney Mark Ellenberg argued that to be the case
in the third and final day of the bond claim estimation hearing. It
was in response to U.S. District Court Judge Laura Taylor Swain's
March ruling against a bondholder lien in which she also ordered
the parties to explore what would have happened in July 2017 if the
bondholders had sought a receiver for PREPA. Specifically, Swain
directed the parties to argue how much money the bondholders would
have received and to use this as a basis to determine the
bondholders' "claim."
The Oversight Board in July 2017 put PREPA into the Title III
bankruptcy process included in the Puerto Rico Oversight,
Management, and Economic Stability Act. In her March ruling, Swain
asked the lawyers to assume history had unfolded differently.
About Puerto Rico
Puerto Rico is a self-governing commonwealth in association with
the United States. The chief of state is the President of the
United States of America. The head of government is an elected
Governor. There are two legislative chambers: the House of
Representatives, 51 seats, and the Senate, 27 seats. The
governor-elect is Ricardo Antonio "Ricky" Rossello Nevares, the son
of former governor Pedro Rossello.
In 2016, the U.S. Congress passed PROMESA, which, among other
things, created the Financial Oversight and Management Board and
imposed an automatic stay on creditor lawsuits against the
government, which expired May 1, 2017.
The members of the oversight board are: (i) Andrew G. Biggs, (ii)
Jose B. Carrion III, (iii) Carlos M. Garcia, (iv) Arthur J.
Gonzalez, (v) Jose R. Gonzalez, (vi) Ana. J. Matosantos, and (vii)
David A. Skeel Jr.
On May 3, 2017, the Commonwealth of Puerto Rico filed a petition
for relief under Title III of the Puerto Rico Oversight,
Management, and Economic Stability Act ("PROMESA"). The case is
pending in the United States District Court for the District of
Puerto Rico under case number 17-cv-01578. A copy of Puerto Rico's
PROMESA petition is available at
http://bankrupt.com/misc/17-01578-00001.pdf
On May 5, 2017, the Puerto Rico Sales Tax Financing Corporation
(COFINA) commenced a case under Title III of PROMESA (D.P.R. Case
No. 17-01599). Joint administration has been sought for the Title
III cases.
On May 21, 2017, two more agencies -- Employees Retirement System
of the Government of the Commonwealth of Puerto Rico and Puerto
Rico Highways and Transportation Authority (Case Nos. 17-01685 and
17-01686) -- commenced Title III cases.
U.S. Chief Justice John Roberts named U.S. District Judge Laura
Taylor Swain to preside over the Title III cases.
The Oversight Board has hired as advisors, Proskauer Rose LLP and
O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic
consultant, Citigroup Global Markets as municipal investment
banker, and Ernst & Young, as financial advisor.
Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M.
Abelson, Esq., of Proskauer Rose LLP; and Hermann D. Bauer, Esq.,
at O'Neill & Borges LLC are onboard as attorneys.
Prime Clerk LLC is the claims and noticing agent. Prime Clerk
maintains the case web site
https://cases.primeclerk.com/puertorico
Jones Day is serving as counsel to certain ERS bondholders.
Paul Weiss is counsel to the Ad Hoc Group of Puerto Rico General
Obligation Bondholders.
PURE BIOSCIENCE: Posts $876K Net Loss in Third Quarter
------------------------------------------------------
PURE Bioscience, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $876,000 on $407,000 of total revenue for the three months ended
April 30, 2023, compared to a net loss of $760,000 on $524,000 of
total revenue for the three months ended April 30, 2022.
For the nine months ended April 30, 2023, the Company reported a
net loss of $2.93 million on $1.27 million of total revenue
compared to a net loss of $2.26 million on $1.44 million of total
revenue for the nine months ended April 30, 2022.
Robert Bartlett, chief executive officer, said, "PURE's performance
in FYQ3 and YTD, are reflective of the markets we are not servicing
to their full potential. Additionally, one of our key distributors
has experienced a major downturn in their respective business,
negatively impacting PURE. One bright spot is our food division
sales have shown a positive increase that has absorbed most of the
losses associated with this distributor. With that said, we still
must do a much better job. In FYQ3, we established a new "Sales
and Marketing Program" focusing on our current customers along with
an emphasis on growing new business. This program is being led by
Tim Steffensmeier, VP Food Division, Tyler Mattson, VP Key Accounts
/ Technology, and Tucker Reigner, VP Channel Sales and Marketing.
PURE has hired additional industry sales professionals to better
serve our current markets and expand into additional markets. We
are committed to monitoring these efforts and will adapt as
necessary. Our objective is to understand the challenges the
industry and our customers are facing from a food safety and
environmental perspective and then support them using PURE's
innovative SDC solutions and application methods. This new
approach has led to several trials, as well as the purchase of
application equipment to treat various food plants using our SDC
technology. Our new additional sales professionals, along with
further distributor support, should help us improve service to our
current customer base and reach out to additional markets,"
concluded Bartlett.
As of April 30, 2023, the Company had $1.82 million in total
assets, $569,000 in total current liabilities, and $1.25 million in
total stockholders' equity.
Pure Bioscience said, "We have a history of recurring losses, and
as of April 30, 2023 we have incurred a cumulative net loss of
$132,213,000. During the nine months ended April 30, 2023, we
recorded a net loss of $2,929,000 on recorded net revenue of
$1,275,000. In addition, during the nine months ended April 30,
2023 we used $2,610,000 in operating and investing activities
resulting in a cash balance of $781,000 as of April 30, 2023. Our
history of recurring operating losses, and negative cash flows from
operating activities give rise to substantial doubt regarding our
ability to continue as a going concern."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1006028/000149315223021239/form10-q.htm
About PURE Bioscience Inc.
PURE Bioscience, Inc. -- www.purebio.com -- is focused on
developing and commercializing its proprietary antimicrobial
products primarily in the food safety arena. The Company provides
solutions to combat the health and environmental challenges of
pathogen and hygienic control. Its technology platform is based on
patented, stabilized ionic silver, and its initial products contain
silver dihydrogen citrate, better known as SDC. PURE is
headquartered in Rancho Cucamonga, California (San Bernardino
metropolitan area).
Los Angeles, California-based Weinberg and Company, P.A., the
Company's auditor since 2019, issued a "going concern"
qualification in its report dated Oct. 28, 2022, citing that the
Company has suffered recurring losses from operations and negative
cash flows from operating activities that raise substantial doubt
about its ability to continue as a going concern.
QUALTEK SERVICES: Court OKs $141MM DIP Loan from PNC and UMB
------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas,
Houston Division, authorized Qualtek Services Inc. and affiliates
to use cash collateral and obtain postpetition financing, on a
final basis.
The Debtors sought authorization to obtain the lesser of (a) the
Borrowing Base and (b) $101.2 million in principal or face amount
of post-petition revolving credit debtor-in-possession financing
and other financial accommodations, pursuant to and in accordance
with the terms and conditions set forth in the Super-priority
Senior Secured Debtor-In-Possession ABL Credit and Guaranty
Agreement by and among the Debtors, as borrowers and/or
guarantors, PNC Bank, National Association, in its capacity as
administrative agent and the financial institutions from time to
time party thereto, as lenders.
The Debtors also sought to obtain up to $40 million in principal
amount of postpetition term loan debtor-in-possession delayed-draw
financing and other financial accommodations, pursuant to and in
accordance with the terms and conditions set forth in the
Super-Priority Senior Secured Debtor-In-Possession Term Credit and
Guaranty Agreement, among Holdings, Borrower, Guarantors, the
lenders party thereto, and UMB Bank, N.A. as administrative agent.
The DIP Revolving Facility will mature and be due and payable on
the earliest to occur of:
(a) the date that is three months after the Petition Date;
(b) 30 days after the Petition Date if the Final Order has not
been entered prior to the expiration of such 30-day period;
(c) the substantial consummation of a plan of reorganization
filed in the Cases that is confirmed pursuant to an order entered
by the Bankruptcy Court;
(d) the acceleration of the loans and the termination of the
commitments with respect to the DIP Term Loan Facility in
accordance with the Term Loan DIP Credit Documents;
(e) the consummation of a sale of all or substantially all of
the assets of the Debtors pursuant to section 363 of the Bankruptcy
Code; and
(f) the termination of the Restructuring Support Agreement.
The DIP Term Facility will mature and be due and payable on the
earliest to occur of:
(a) the date that is 120 days after the Petition Date;
(b) 30 days after the Petition Date if the Final DIP Order has
not been entered prior to the expiration of such 30-day period,
(c) the substantial consummation of a plan of reorganization
filed in the Chapter 11 Cases that is confirmed pursuant to an
order entered by the Bankruptcy Court;
(d) the acceleration of the loans and the termination of the
Commitments in accordance with Section 8 or the applicable DIP
Order;
(e) the consummation of a sale of all or substantially all of
the assets of the Debtors pursuant to section 363 of the Bankruptcy
Code to which the DIP Agent (acting at the direction of the
Requisite Lenders) does not consent;
(f) the termination of the Restructuring Support Agreement;
(g) an order with respect to the Case is entered by the
Bankruptcy Court converting such Case to a case or proceeding under
chapter 7 of the Bankruptcy Code; and
(h) an order is entered by the Bankruptcy Court dismissing the
Case.
The Debtors are required to comply with these milestones:
(a) No later than May 24, 2023 the Petition Date will have
occurred;
(b) No later than May 25, 2023 the Company Parties will
commence solicitation of votes on the Plan;
(c) no later than one day from the Petition Date, the Plan and
Disclosure Statement will have been filed in the Chapter 11 Cases;
(d) No later than three Business Days from the Petition Date,
the DIP Order will have been entered on an interim basis;
(e) No later than three days from the Petition Date, the
Disclosure Statement Order will have been entered on a conditional
basis;
(f) No later than 30 days from the Petition Date, the DIP
Order will have been entered on a final basis;
(g) No later than 45 days from the Petition Date, the
Bankruptcy Court will have entered the Confirmation Order; and
(h) No later than 45 days from the Petition Date, the
Bankruptcy Court will have entered the Disclosure Statement Order
on a final basis; and
(i) No later than 65 days from the Petition Date, the Plan
Effective Date will have occurred.
Prior to the commencement of the Chapter 11 Cases, the Pre-Petition
Revolving Secured Parties made loans and advances, and provided
other financial accommodations, pursuant to the Pre-Petition
Revolving Financing Documents to the Pre-Petition Borrowers. The
Pre-Petition Guarantors guaranteed the Pre-Petition Revolving
Obligations of the Pre-Petition Borrowers under the Pre-Petition
Revolving Credit Agreement. The Pre-Petition Revolving Obligations
were automatically accelerated on the Petition Date as a result of
the commencement of the Chapter 11 Cases in accordance with the
terms of the Pre-Petition Revolving Financing Documents, and all
commitments of the Pre-Petition Revolving Secured Parties were
terminated.
As of the Petition Date, the Pre-Petition Borrowers and the
Pre-Petition Guarantors, were indebted to the Pre-Petition
Revolving Credit Secured Parties, in the aggregate principal amount
of not less than $74.608 million.
Prior to the commencement of the Chapter 11 Cases, the Pre-Petition
Term Lenders made certain loans to Pre-Petition Borrowers pursuant
to the Pre-Petition Term Financing Documents.
As of the Petition Date, the aggregate amount of all Obligations
owing by the Pre-Petition Borrowers to the Pre-Petition Term
Secured Parties under and in connection with the Pre-Petition Term
Financing Documents was not less than (a) $405.9 million in respect
of the Pre-Petition Term Loans, including approximately $65 million
in Amendment No. 3 Term Loans, $100.7 million in Amendment No. 3
Rollover Loans, and $240.2 million of Tranche B Term Loans, plus
interest accrued and accruing thereon at the rates provided for
under the PrePetition Term Credit Agreement.
As adequate protection, the the DIP Term Agent, for itself and on
behalf of the DIP Term Lenders, is granted priming, valid,
perfected and enforceable liens in and upon all of the DIP
Collateral.
The DIP Secured Parties are also granted an allowed superpriority
administrative expense claim status for the DIP Obligations,
pursuant to Bankruptcy Code section 364(c)(1) and 507(b), subject
to the priorities described in the Claim Priority Chart and the
terms of the DIP Orders.
These events constitute an "Event of Default":
(a) The occurrence of any Event of Default as defined and
under the DIP Credit Agreements;
(b) The existence of a Carve Out Funding Shortfall, unless
such Carve Out Funding Shortfall is cured within five days;
(c) The Debtors seeking approval of a sale of all or a portion
of the Debtors' property that is not acceptable to the Pre-Petition
Agents or the DIP Agents; or
(d) Without the consent of the DIP Agents and the Pre-Petition
Agents, the sale of all or substantially all of the Debtors'
property without the order approving such sale providing for the
indefeasible payment and satisfaction in full in cash of the
Pre-Petition Obligations and the DIP Obligations.
A copy of the order is available at https://urlcurt.com/u?l=4eXdxF
from PacerMonitor.com.
About QualTek
Founded in 2012, QualTek OTCMKTS: QTEKQ --
https://www.qualtekservices.com/ -- is a technology-driven provider
of infrastructure services to the 5G wireless, telecom, power grid
modernization and renewable energy sectors across North America.
QualTek has a national footprint with more than 65 operation
centers across the U.S. and a workforce of over 5,000 people.
QualTek has established a nationwide operating network to enable
quick responses to customer demands as well as proprietary
technology infrastructure for advanced reporting and invoicing. The
Company reports within two operating segments: Telecommunications,
and Renewables and Recovery and has already become a leader in
providing disaster recovery logistics and services for electric
utilities.
QualTek Services Inc. and its affiliates sought Chapter 11
protection (Bankr. S.D. Tex. Lead Case No. 23-90584) on May 24,
2023. QualTex disclosed $688,927,000 in assets against
$789,647,000 in total debt as of Dec. 31, 2022.
The Hon. Christopher M. Lopez is the case judge.
Kirkland & Ellis LLP and Jackson Walker LLP are serving as legal
counsel, Jefferies is serving as investment banker, and Alvarez &
Marsal is serving as financial advisor to the Company. The Company
has retained C Street Advisory Group to serve as the strategy and
communications advisor. Epiq is the claims agent.
RICHMOND HOSPITALITY: Plan Exclusivity Period Extended to Sept. 10
------------------------------------------------------------------
The Hon. Jil Mazer-Marino of the U.S. Bankruptcy Court for the
Eastern District of New York extended Richmond Hospitality LLC's
exclusive periods within which to file a Chapter 11 plan and to
solicit acceptances thereof to September 10 and November 9, 2023,
respectively.
The extension is necessary to allow the proposed sale or assignment
of lease related to Richmond's hotel project to further develop,
the company's attorney wrote in his motion.
The Court overruled the Objection filed by lender Shaughnessy
Capital, LLC. The Order is without prejudice to the right of the
Debtor to seek a further extension of the exclusive periods.
About Richmond Hospitality
Richmond Hospitality, LLC is a real estate hotel development owner
and operator that was poised to develop an 80-room Best Western
Vibe hotel in Staten Island.
Richmond Hospitality filed its voluntary petition under Chapter 7
of the Bankruptcy Code on March 16, 2022. On May 18, 2022, the
court ordered the conversion of the case to one under Chapter 11
(Bankr. E.D.N.Y. Case No. 22-40507). At the time of the filing, the
Debtor listed $1 million to $10 million in both assets and
liabilities.
Judge Jil Mazer-Marino presides over the case.
Joseph S. Maniscalco, Esq., at LaMonica Herbst & Maniscalco, LLP
and Stuart R. Berg, P.C. serve as the Debtor's bankruptcy counsel
and special litigation counsel, respectively.
RODA LLC: Hilco Notes of July 12 Bid Deadline for Ice Arena
-----------------------------------------------------------
Hilco Real Estate, LLC announced July 12, 2023, as the qualified
bid deadline for the Chapter 11 bankruptcy sale of this turnkey
ice-skating complex in Sherwood, Oregon. Well located along the
Southwest Pacific Highway, 16 miles outside of Portland, this
facility draws demand and usage from the greater Portland market
and beyond with regional team tournaments, figure skating events as
well as public and private skating lessons scheduled regularly.
Built in 1999, the currently operating, 51,000 SF ice arena
features a National Hockey League regulation-size sheet of ice,
pro-shop, beer garden, weight room, grandstands and concessions.
Between the retail space on the first floor and the offices on the
second, the property has eight additional revenue-generating lease
opportunities, which could generate a potential gross revenue of
$823,000 (based on market evaluation). The site also has room for
future expansion on its 4.53± acres.
The property is in the community of Sherwood, in the southeast
corner of Washington County. Nestled in the Tualatin Valley,
Sherwood offers an excellent balance between the metropolitan
amenities found in Portland and the natural beauty of both the
Tualatin River and the Tualatin Mountains. The area boasts a
vibrant downtown area with a variety of shops, restaurants and
local events throughout the year. It is a family-friendly community
with excellent schools and a strong sense of safety, camaraderie
and pride. Sherwood's median household income is $107,537 with
3.89% one-year growth.
This sale is being conducted by Order of the U.S. Bankruptcy Court
District of Oregon (Portland), Bankruptcy Petition No.
23-30250-thp11, In re: RODA, LLC and is subject to court approval.
Qualified bids must be received on or before the deadline of July
12, 2023 at 5:00 p.m. (CT) and must be submitted on the approved
Purchase and Sale Agreement in compliance with the bankruptcy
court-approved bid procedures available for review and download
from Hilco Real Estate's website.
Terry Rochford, senior vice president of business development at
Hilco Real Estate, states, "We believe this property adds
significant value to the community and will continue to draw
revenue and garner expanded interest from both local and regional
winter sports enthusiasts. Combined with the certainty of the
bankruptcy sale process, this property is a compelling offering!"
Jeff Azuse, executive vice president at Hilco Real Estate, added,
"Considering the increasing demand for ice-skating facilities in
the Portland MSA and the small number of competitive rinks, this
property presents a unique opportunity to drive up revenue by
optimizing scheduling and capitalizing on market demand."
Interested buyers should review the bid procedures for requirements
in order to participate in the bankruptcy sale process available on
Hilco Real Estate's website. For further information, please
contact Jonathan Cuticelli at (203) 561-8737 or
jcuticelli@hilcoglobal.com, Jamie Coté at (847) 418-2187 or
jcote@hilcoglobal.com and Adam Zimmerman, MAI, at (847) 917-9323 or
azimmerman@hilcoglobal.com.
About RODA LLC
RODA, LLC, a company in Washington County, Ore., sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Ore. Case
No. 23-30250) on Feb. 6, 2023. In the petition signed by its
managing member, Roy MacMillan, the Debtor disclosed up to $10
million in both assets and liabilities.
MacMillan is a debtor in a separate Chapter 11 case (Bankr. D. Ore.
Case No. 23-30159). The cases are jointly administered.
Judge Teresa H. Pearson oversees the case.
Douglas R. Ricks, Esq., at Vander Bos and Chapman, LLP,
Intellequity Legal Services, LLC and Thomas L Strong CPA PC serve
as the Debtor's bankruptcy counsel, special counsel and accountant,
respectively.
SABRE GLBL: $404M Bank Debt Trades at 26% Discount
--------------------------------------------------
Participations in a syndicated loan under which Sabre GLBL Inc is a
borrower were trading in the secondary market around 74.4
cents-on-the-dollar during the week ended Friday, June 16, 2023,
according to Bloomberg's Evaluated Pricing service data.
The $404 million facility is a Term loan that is scheduled to
mature on December 17, 2027. About $396.9 million of the loan is
withdrawn and outstanding.
Sabre GLBL Inc. provides information technology services. The
Company offers technology solutions including data-driven business
intelligence, mobile, distribution, and Software as a Service
(SaaS) solutions. Sabre GLBL serves customers worldwide.
SANIBEL REALTY: Seeks to Extend Plan Exclusivity to 60 Days
-----------------------------------------------------------
Sanibel Realty Trust LLC asks the U.S. Bankruptcy Court for the
Southern District of Florida to extend the statutory deadlines for
filing and soliciting acceptances of a Chapter 11 plan, and the
deadline for filing a plan and disclosure statement to 60 days.
By order entered March 20, 2023, the Debtor's initial exclusive
periods to file a plan and solicit plan votes were extended to June
12 and August 8, respectively.
The Debtor explained that it is working with professionals
diligently towards negotiating with the lienholders of the Debtor's
properties to reach a resolution as to the disputed values of the
properties, and therefore the allowable secured claims in this case
-- including by the filing of a motion under 11 U.S.C. Section
506(a) to value its property located at 9499 Collins Avenue, Unit
PH06, Surfside, Florida 33179, which is set for a final evidentiary
hearing on August 8, 2023 -- with an eye towards formulating a
consensual and confirmable Chapter 11 plan in this case.
The Debtor is represented by:
Nathan G. Mancuso, Esq.
MANCUSO LAW, P.A.
Boca Raton Corporate Centre
7777 Glades Rd., Suite 100
Boca Raton, FL 33434
Telephone: (561) 245-4705
Facsimile: (561) 226-2575
E-mail: ngm@mancuso-law.com
About Sanibel Realty Trust
Sanibel Realty Trust, LLC, a company in Miami, Fla., filed a
petition for relief under Chapter 11 of the Bankruptcy Code (Bankr.
S.D. Fla. Case No. 22-18729) on Nov. 11, 2022. In the petition
filed by its manager, Javier Perez, the Debtor reported between $1
million and $10 million in both assets and liabilities.
Judge Robert A. Mark oversees the case.
The Debtor is represented by Nathan G. Mancuso, Esq., at Mancuso
Law, P.A.
SAS AB: Court Denies Norske Bid to Get Appointed to Committee
-------------------------------------------------------------
Judge Michael Wiles of the U.S. Bankruptcy Court for the Southern
District of New York denied the motion by Norske SAS-flygeres
Forening to be appointed to the official committee of unsecured
creditors in SAS AB's Chapter 11 case.
Norske, a member of the Norwegian national trade federation LO, had
sought appointment to the committee last month, saying it would
place a Scandinavian creditor on the committee, which currently
does not have a Scandinavian member. Norske argued Scandinavian
creditors and employees in the companies' home countries are
currently unrepresented on the committee.
The U.S. Trustee for Region 2, which oversees SAS AB's Chapter 11
case, opposed the motion, arguing the court has no statutory
authority to direct the bankruptcy watchdog to appoint a particular
creditor to the committee.
About Scandinavian Airlines
SAS SAB -- https://www.sasgroup.net -- Scandinavia's leading
airline, with main hubs in Copenhagen, Oslo and Stockholm, is
flying to destinations in Europe, USA and Asia. In addition to
flight operations, SAS offers ground handling services, technical
maintenance and air cargo services. SAS is a founder member of the
Star Alliance, and together with its partner airlines offers a wide
network worldwide.
SAS AB and its subsidiaries, including Scandinavian Airlines
Systems Denmark-Norway-Sweden and Scandinavian Airlines of North
America Inc., sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 22-10925) on July 5,
2022. In the petition filed by Erno Hilden, as authorized
representative, SAS AB estimated assets between $10 billion and $50
billion and liabilities between $1 billion and $10 billion.
Judge Michael E Wiles oversees the cases.
The Debtors tapped Weil, Gotshal & Manges, LLP as global legal
counsel; Mannheimer Swartling Advokatbyra AB as special counsel;
FTI Consulting, Inc. as financial advisor; and Seabury Securities,
LLC and Skandinaviska Enskilda Banken AB as investment bankers.
Seabury is also serving as restructuring advisor. Kroll
Restructuring Administration, LLC is the claims agent and
administrative advisor.
The U.S. Trustee for Region 2 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases. The
committee is represented by Willkie Farr & Gallagher, LLP.
SEINEYARD INC: Seeks to Extend Plan Exclusivity, Mulls Asset Sale
-----------------------------------------------------------------
Seineyard, Inc. asks the U.S. Bankruptcy Court for the Northern
District of Florida to extend its exclusive period within which to
file a Chapter 11 plan and to solicit acceptances thereof to
November 27, 2023.
The Debtor says an extension will provide it additional time to
sell its real property and business, and propose a confirmable,
liquidating plan. The Debtor also intends on working to formulate a
plan once the real property is sold. However, if the sale does not
occur, the Debtor will attempt to reorganize.
The Debtor is represented by:
Robert C. Bruner, Esq.
Byron Wright III, Esq.
Samantha A. Kelley, Esq.
BRUNER WRIGHT, P.A.
2810 Remington Green Circle
Tallahassee, FL 32308
Telephone: (850) 385-0342
Facsimile: (850) 270-2441
E-mail: rbruner@brunerwright.com
twright@brunerwright.com
About Seineyard Inc.
Seineyard, Inc. sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Fla. Case No. 23-40028) on Jan. 27,
2023, with $500,001 to $1 million in both assets and liabilities.
Judge Karen K. Specie oversees the case.
Bruner Wright, P.A. is the Debtor's bankruptcy counsel.
SILVER TRIDENT: Jarrod Martin Named Subchapter V Trustee
--------------------------------------------------------
The U.S. Trustee for Region 7 appointed Jarrod Martin, Esq., a
practicing attorney in Houston, as Subchapter V trustee for Silver
Trident Distributions, LLC.
Mr. Martin will be paid an hourly fee of $550 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Martin declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Jarrod B. Martin
1200 Smith Street, Suite 1400
Houston, TX 77002
Phone: 713-356-1280
Email: JBM.Trustee@chamberlainlaw.com
About Silver Trident
Silver Trident Distributions, LLC owns a one-stop shop for all auto
detailing chemicals including waxes, polishes, and sealants. The
company is based in Conroe, Texas.
Silver Trident Distributions filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. S.D. Texas Case No.
23-32141) on June 7, 2023, with $100,000 to $500,000 in assets and
$1 million to $10 million in liabilities. Virendra A. Patel, owner,
signed the petition.
Judge Jeffrey P. Norman oversees the case.
Michael L. Hardwick, Esq., at Michael Hardwick Law, PLLC is the
Debtor's counsel.
SMI ACQUISITION INC: $235M Bank Debt Trades at 30% Discount
-----------------------------------------------------------
Participations in a syndicated loan under which SMI Acquisition Inc
is a borrower were trading in the secondary market around 70
cents-on-the-dollar during the week ended Friday, June 16, 2023,
according to Bloomberg's Evaluated Pricing service data.
The $235 million facility is a Term loan that is scheduled to
mature on November 1, 2024. The amount is fully drawn and
outstanding.
Strategic Materials, Inc. is an environmental services company
focused on recycling and processing scrap glass (92% of revenues),
known as cullet, as well as processing post-industrial scrap
plastic (8% of revenues).
SNOWSHOE MILLWORKS: Steven Weiss Named Subchapter V Trustee
-----------------------------------------------------------
The U.S. Trustee for Region 1 appointed Steven Weiss, Esq., at
Shatz, Schwartz and Fentin, P.C., as Subchapter V trustee for
Snowshoe Millworks, LLC.
Mr. Weiss will be paid an hourly fee of $490 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Weiss 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 Weiss, Esq.
Shatz, Schwartz and Fentin, P.C.
1441 Main Street, Suite 1100
Springfield, MA 01103
Phone: (413) 737-1131
Email: sweiss@ssfpc.com
About Snowshoe Milworks
Snowshoe Milworks LLC filed a petition under Chapter 11, Subchapter
V of the Bankruptcy Code (Bankr. D. Mass. Case No. 23-10887) on
June 5, 2023, with $1 million to $10 million in both assets and
liabilities. Sheila Coffin Harshman, sole manager and member,
signed the petition.
Judge Janet E. Bostwick oversees the case.
Adam Ruttenberg, Esq., at Beacon Law Group, LLC serves as the
Debtor's counsel.
SOUND INPATIENT: $610M Bank Debt Trades at 39% Discount
-------------------------------------------------------
Participations in a syndicated loan under which Sound Inpatient
Physicians Holdings LLC is a borrower were trading in the secondary
market around 61.2 cents-on-the-dollar during the week ended
Friday, June 16, 2023, according to Bloomberg's Evaluated Pricing
service data.
The $610 million facility is a Term loan that is scheduled to
mature on June 28, 2025. About $593.8 million of the loan is
withdrawn and outstanding.
Sound Inpatient Physicians Holdings, LLC, through its subsidiaries,
provides healthcare services.
STAUBITZ MARKET: On the Brink of Bankruptcy
-------------------------------------------
Hannah Frishberg of the New York Post reports that New York City's
oldest butcher shop, Staubitz Market, is teetering on bankruptcy.
Nestled among the high-end home-goods stores and boutiques that
line Cobble Hill's main retail corridor, one gourmet grocer offers
not just premium cuts of meat -- but also a time capsule into
another era in Brooklyn, one where it was not unique to know the
butcher by name.
But, possibly, that's not for too much longer.
Staubitz Market has been slinging steaks from its 222 Court St.
storefront since 1917, making it the borough's oldest butcher shop.
But a series of international trends and personal problems have
recently brought on a slate of financial woes that its owner fears
may be a death knell for the beloved local business.
"With the decreasing income revenue of the store, business affairs
in a mess, and the decrepit state of the building; the accumulated
expenses have now reached a critical point. Staubitz Market is at
risk of bankruptcy and complete failure," John McFadden Jr., 56,
wrote in a GoFundMe he launched this month to raise $150,000 in
funds for the store, which he inherited after his 87-year-old
father passed away in November 2022.
(His father, John McFadden Sr., bought the business and its
building from Staubitz's second owner in 1967 and worked the shop
until his last, moving to administrative tasks after a bad fall
left him wheelchair-ridden.)
The current financial reckoning, McFadden explained to The Post, is
due to a combination of food price inflation, losing customers to
the internet, corporate retailers and vegetarianism. They're the
classic challenges that have made running an independent business
in New York City a challenge only the impassioned or wealthy ever
successfully maintain. Among the other issues at hand, the city
served McFadden with an emergency decree to repair the historically
designated building's facade, a fix which will cost him $125,000 to
make.
"It's a lotta pork chops you gotta cut to make $125,000," McFadden
told The Post.
Failure to fix the facade, he added, puts him at risk of being
heavily fined and having the building condemned.
"Other places would just be like, 'okay, we're done,'" said
McFadden, who grew up working at the shop and called the
fundraising campaign a “do or die"-level situation.
Patrons were quick to show their support for the family-owned meat
merchant that has devotedly served them for the past 60 years. The
GoFundMe has so far accrued about $20,000, and has drummed up more
business for the scaffolding-entombed butcher.
"To me, walking into Staubitz is walking into a tradition of
beautifully displayed meats and knowledgeable butchers who actually
know you and listen to what it is you want," Ken Rush, 74, who has
been a loyal customer since moving to the neighborhood in 1972,
told The Post.
In all of Rush's decades shopping there, he said, neither the
service nor scenery have changed much, although there's no longer
sawdust on the floor.
(That tradition stopped some 15 years ago, when a new wood floor
was installed that the McFaddens found became slippery when
sawdusted.)
"Going to Staubitz feels like a trip back in time to the origins of
the neighborhood," said Debbie Miesenzahl, 54, a customer of 12
years.
"I don't want to go to Trader Joe's or some other place to buy
meat," said Eric Hansen, who shops at the store every day — and
is friends with every butcher and lives around the corner. "This is
a home away from home for me."
McFadden hopes their love can save his shop so he can keep it
going, as his father did before him.
"I'm still healthy and strong. I'd love to keep it going, continue
serving the community as we've done for nearly 60 years," he said.
"I'm honored and grateful to have the opportunity to do what I do.
We offer a great product and I know when people take it home,
they're gonna love it, they're gonna come back, they're gonna say,
John, I just want to tell you that we had family over and that was
the best steak and it was beautiful."
About Staubitz Market
Staubitz Market is New York City's oldest butcher shop, where all
of its meats are hand selected daily the old fashioned way to bring
its customers the very best.
SUNNY MILLS: Case Summary & Six Unsecured Creditors
---------------------------------------------------
Debtor: Sunny Mills, LLC
6940 S.W. 11 Street
Pembroke Pines, FL 33023
Chapter 11 Petition Date: June 20, 2023
Business Description: The Debtor is a Single Asset Real Estate
(as defined in 11 U.S.C. Section 101(51B)).
Court: United States Bankruptcy Court
Southern District of Florida
Case No.: 23-14780
Judge: Hon. Scott M. Grossman
Debtor's Counsel: Marilyn L. Maloy, Esq.
MALOY LAW GROUP, LLC
540 NW 165 Street Road, Suite 210
Miami, FL 33169
Tel: (786) 483-7541
Email: service@maloylaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Aida Johanna Montanez as mgmr.
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/3BWE3AA/Sunny_Mills_LLC__flsbke-23-14780__0001.0.pdf?mcid=tGE4TAMA
SURGALIGN HOLDINGS: Files Chapter 11 to Facilitate Asset Sale
-------------------------------------------------------------
Surgalign Holdings, Inc., (NASDAQ: SRGA), a global medical
technology company focused on elevating the standard of care by
driving the evolution of digital health, on June 20 disclosed that
the Company has entered into an asset purchase agreement (the
"Asset Purchase Agreement") to sell substantially all of its U.S.
hardware and biomaterials assets and the equity interests in
non-Debtor entities related to the Debtors' hardware business
outside of the U.S. to Xtant Medical Holdings, Inc. ("Xtant") for
$5.0 million. The sale will be effectuated through the chapter 11
proceedings initiated by the Company and certain of its
subsidiaries, who elected to file voluntary petitions under
chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for
the Southern District of Texas, Houston Division.
As part of the chapter 11 proceedings, the Company also filed a
motion seeking authorization to pursue an auction and sale process
under section 363 of the U.S. Bankruptcy Code pursuant to which
Xtant will be designated as the stalking horse bidder. The proposed
sale process also encompasses the Company's other assets that are
not the subject of the Asset Purchase Agreement.
The Company has filed a series of motions with the Bankruptcy Court
seeking to ensure the continuation of normal operations during this
process. The Company believes that it has sufficient liquidity to
conduct its businesses in an uninterrupted manner and fund the
chapter 11 proceedings, including the sale of its assets.
Additional information about this process and the proposed asset
sale, as well as other documents related to the Chapter 11
proceedings, is available through the Company's claims agent Kroll
Restructuring Administration LLC ("Kroll"), at
https://restructuring.ra.kroll.com/surgalign, or by calling the
toll-free hotline at +1 (833) 939-6015 or for calls originating
outside the U.S., by calling +1 (646) 440-4843. Inquiries can also
be sent directly to Kroll at surgaligninfo@ra.kroll.com.
White & Case LLP is serving as the Company's legal counsel, Alvarez
& Marsal Securities, LLC is serving as investment banker, and
Alvarez & Marsal North America, LLC is serving as financial advisor
to the Company. For more information about the sale process,
interested parties should contact Alvarez & Marsal Securities,
LLC.
Surgalign Holdings, Inc., is a global medical technology company
advancing the science of spine care, focused on delivering
innovative solutions that drive superior clinical and economic
outcomes. The company is based in Deerfield, Illinois.
TEMESCAL WELLNESS: Auction for Evermore Cannabis on June 26
-----------------------------------------------------------
Ascend Maryland 2 LLC as secured party will sell the collateral of
Temescal Wellness of Maryland LLC d/b/a Evermore Cannabis Company
by public auction in accordance with the New York Uniform
Commercial Code on June 26, 2023, at 12:00 p.m. ET.
Complete business to be sold in one buck lot via auction. The
collateral includes all accounts, chattel paper, equipment &
fixtures, general tangibles and payments intangibles, inventory,
goods and farm products, investment property, letters of credit,
letter of credit rights, instruments, promissory notes, drafts &
documents, supporting obligations, tort claims, and all proceeds
and products of the foregoing.
For further information on the sale, contact:
Barret Arthur
PPC Group
Tel: 224-927-5318
Email: barret@pplgroupllc.com
Temescal Wellness of Maryland LLC --
https://www.temescalwellness.com/ -- offers medical marijuana
products.
TGPC PROPERTIES: Seeks to Extend Plan Exclusivity to September 18
-----------------------------------------------------------------
TGPC Properties, LLC asks the U.S. Bankruptcy Court for the
District of Arizona to extend its exclusive periods within which to
file a Chapter 11 plan to September 18, 2023 and to confirm a plan
until 45 days after that date.
Absent an extension, the Debtor's exclusive Plan filing period was
scheduled to expire June 20.
The Debtor explained there is a major unresolved contingency.
Secured Creditor 4 LLC's Claim Objection remains to be resolved,
whether through either a voluntary settlement (which the Debtor
attempted before filing the objection, and is still hopeful of
achieving) or through a litigated outcome. The outcome will
determine the allowed amount of 4 LLC's secured claim, which will
have a substantial impact on numerous confirmation issues. That
resolution may or may not be achieved before the expiration of the
90-day extension the Debtor is seeking, but further development of
the proceedings will likely have a significant influence on the
plan confirmation process.
The Debtor explained that while this is not a particularly large or
complex case, it is one in which Debtor is moving forward
expeditiously toward confirmation of a feasible plan of
reorganization. The Debtor is not seeking an extension of
exclusivity to pressure its creditors, but to avoid the additional
burdens of fighting a competing plan while simultaneously seeking
approval of its own.
The Debtor is represented by:
Bradley D. Pack, Esq.
ENGELMAN BERGER, P.C.
2800 North Central Avenue, Suite 1200
Phoenix, AZ 85004
Telephone: (602) 271-9090
Facsimile: (602) 222-4999
E-mail: bdp@eblawyers.com
About TGPC Properties
TGPC Properties, LLC is primarily engaged in renting and leasing
real estate properties.
TGPC Properties filed a petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. D. Ariz. Case No. 22-08374) on Dec. 19,
2022, with $1 million to $10 million in both assets and
liabilities. Paul Johnson, manager, signed the petition.
Judge Madeleine C. Wanslee oversees the case.
The Debtor is represented by D. Lamar Hawkins, Esq., at Guidant
Law, PLC as legal counsel and Carel Marbry of The Gathering Place
Church as bookkeeper.
TRICIDA INC: Davis Polk Advises Noteholders in Ch. 11 Liquidation
-----------------------------------------------------------------
Davis Polk advised an ad hoc group of convertible senior
noteholders and the indenture trustee in connection with the
chapter 11 liquidation of Tricida, Inc. On January 11, 2023,
Tricida filed a voluntary chapter 11 petition in the United States
Bankruptcy Court for the District of Delaware. Shortly before
filing, the members of the ad hoc noteholder group executed a
restructuring support agreement with Tricida, which, among other
things, contemplated the liquidation of the debtor pursuant to a
confirmed chapter 11 plan and the establishment of a liquidating
trust.
In February 2023, the Bankruptcy Court approved and Tricida closed
on the sale of substantially all of its assets pursuant to section
363 of the Bankruptcy Code, including the sale of its chronic
kidney disease drug intellectual property to Renibus Therapeutics
Inc. for (i) an initial $250,000 cash consideration due upon
closing, (ii) a one-time $2.5 million payment due upon certain
approvals by the FDA in connection with veverimer and (iii) several
additional milestone payments, up to an additional $150 million in
the aggregate, upon the occurrence of certain predetermined sales
thresholds. On May 23, 2023, the United States Bankruptcy Court for
the District of Delaware approved Tricida’s chapter 11 plan of
liquidation and the plan effective date was June 12, 2023.
Founded in 2013, Tricida was a clinical-stage pharmaceutical
company focused on the development and commercialization of
veverimer, a drug designed to slow the progression of chronic
kidney disease through the treatment of chronic metabolic
acidosis.
The Davis Polk restructuring team included partner Darren S. Klein
and associates Abraham Bane and Ben Weissler. Partner Lucy W. Farr,
counsel Leslie J. Altus and associates Benjamin Helfgott and
Michelle Zhao provided tax advice. All members of the Davis Polk
team are located in the New York office.
Davis Polk refers to Davis Polk & Wardwell LLP, a New York limited
liability partnership, and its associated entities.
About Tricida Inc.
Tricida Inc. -- https://www.tricida.com/ -- is a pharmaceutical
company working to turn the tide on metabolic acidosis and
progression of chronic kidney disease. The company is based in
South San Francisco, Calif.
Tricida filed a petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. D. Del. Case No. 23-10024) on Jan. 12,
2023, It disclosed $93,879,000 in total assets against $229,977,000
in total debt as of Sept. 30, 2022.
The Debtor tapped Sidley Austin, LLP and Young Conaway Stargatt &
Taylor, LLP, as counsels; SierraConstellation Partners, LLC as
financial advisor; and Stifel, Nicolaus & Company, Inc., and Miller
Buckfire, LLC as investment bankers. Kurtzman Carson Consultants,
LLC is the claims agent and administrative advisor.
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Debtor's Chapter 11 case.
Womble Bond Dickinson (US) LLP and Rock Creek Advisors, LLC serve
as the committee's legal counsel and financial advisor,
respectively.
TRITEK INTERNATIONAL: U.S. Trustee Appoints Creditors' Committee
----------------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed an official
committee to represent unsecured creditors in the Chapter 11 cases
of Tritek International and its affiliates.
The committee members are:
1. Rolling Hills Express, Inc.
275 Wake Forrest Road
Sardis, TN 38371
Attention: Brandon Bennett
Tel: 731-858-2333
Email: brandon@rollinghillsexpress.com
2. First Call Logistics LLC
4715 Pinewood Road
Louisville, KY 40218
Attention: James Cameron
Tel: 317-708-7800, X-146
Email: jimc@gofclogistics.com
3. Headwaters Development, LLC
7730 Laredo Drive
Chanhassen, MN 55317
Attention: Dan Kersten
Tel: 646-717-4584
Email: dkersten@headwatersdevelopment.com
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About Tritek International Inc.
Tritek International Inc., HyLife Foods Windom, LLC, Canwin Farms,
LLC are entities that are part of the HyLife vertically integrated
operation for the raising, production and sale of pork products.
The companies'r operations involve all aspects and stages of the
pork production process, including the farming and sourcing of
hogs, the packaging of pork at their processing facility, and the
marketing and sale of such products throughout premium domestic and
international end markets, primarily in the United States, Canada,
Japan, Korea, and China.
Tritek International and its affiliates sought Chapter 11
bankruptcy protection (Bankr. D. Del. Lead Case No. 23-10520) on
April 27, 2023. The petitions were signed by Grant Lazaruk, chief
executive officer.
At the time of the filing, Tritek International and HyLife Foods
Windom reported as much as $50,000 in both assets and liabilities
while Canwin Farms reported $1 million to $10 million in both
assets and liabilities.
Judge Thomas M. Horan presides over the Debtors' cases.
The Debtors tapped Katten Muchin Rosenman, LLP and Potter Anderson
& Corroon, LLP as bankruptcy counsel; PricewaterhouseCoopers, LLP
as financial advisor; Intrepid Investment Bankers as investment
banker; and Donlin Recano & Company, Inc. as claims and noticing
agent.
TURTLE CREEK: HN Capital Nabs Site in Bankruptcy
------------------------------------------------
The Real Deal reports that Tim Barton has lost a lengthy legal
battle involving a coveted property in Dallas' Turtle Creek
neighborhood.
U.S. District Judge Brantley Starr approved a settlement Thursday,
June 8, 2023, granting ownership of the site at 2999 Turtle Creek
Boulevard -- once intended for the city's first Mandarin Oriental
hotel -- to an affiliate of HN Capital Partners, for $2.5 million,
the Dallas Business Journal reported.
The property is across from the HN Capital-owned Mansion on Turtle
Creek and includes 2.3 acres of undeveloped land, a two-story
office building and a parking garage. It is valued at $14.5
million, according to the Dallas Central Appraisal District.
Barton's legal team has appealed the judge's order.
Barton, owner and president of JMJ Development, is losing more than
just his Turtle Creek trophy. A court-appointed receiver has also
put the firm's other real estate holdings, including Barton’s
personal residence on Rock Creek Drive in Dallas, up for sale.
And that's not the end of his woes. He's also facing federal
criminal charges.
About Turtle Creek, Ltd.
Headquartered in Bonita Springs, Florida, Turtle Creek, Ltd., dba
Turtle Creek Apartments is a single-asset, real estate company.
The Company filed for Chapter 11 on April 29, 2009 (Bankr. M. D.
Fla. Case No. 09-08595). Amy Denton Harris, Esq. and Stephen R
Leslie, Esq., at Stichter, Riedel, Blain & Prosser, P.A.,
represents the Debtor in its restructuring effort. The Debtor's
assets and debts both range from $10 million to $50 million.
UNICON ACQUISITION: SSG Was Investment Banker in Sale to PE Buyer
-----------------------------------------------------------------
SSG Capital Advisors, LLC (SSG) acted as the investment banker to
Unicon Acquisition, Inc. in the sale of substantially all of its
assets to a private equity buyer. The transaction was effectuated
through a sale of the senior secured debt and a subsequent
transaction pursuant to Article 9 of the Uniform Commercial Code.
The transaction closed in June 2023.
Established in 1998 and headquartered in Marshville, North
Carolina, Unicon is the country's largest logistics services
provider to the live poultry industry. The Company offers
harvesting, hauling, pest control, litter treatment, composting,
and plant labor services to poultry processors located in the
Southeast, Mid-Atlantic, and Midwest regions. The Company utilizes
automated and manual harvesting crews to deliver best-in-class
service, reduce labor needs, and increase animal welfare and
safety.
After successfully navigating the live poultry logistics industry
as a manual harvester for 17 years, the Company made the strategic
decision in 2015 to invest in automating the harvesting process to
combat a challenging labor market. That decision proved successful
as the Company experienced significant growth following the
implementation of the first automated harvester in 2016.However,
the strategy also proved to be capital intensive, and as a result,
the Company sought a strategic or financial investor to strengthen
its capital base and provide adequate liquidity to further support
its growth initiatives.
SSG was retained by Unicon to assist in the exploration of
strategic alternatives.SSG conducted a comprehensive marketing
process and attracted interest from multiple parties who engaged in
a thorough review of the business. A private equity buyer
ultimately prevailed in the process and purchased the assets
through a UCC Article 9 sale, which was completed in an expedited
timeframe and allowed the Company to maintain engagement with its
customer base. SSG's ability to manage complex transactions and
identify buyers in niche market segments enabled the Company to
maximize the value of the assets for the stakeholders and preserve
hundreds of jobs for the employees.
Other professionals who worked on the transaction include:
* Tyler P. Brown of Hunton Andrews Kurth LLP, counsel to Unicon
Acquisition, Inc.; and
* Mark T. Plichta and Kyndle Bennett of Foley & Lardner LLP,
counsel for the private equity buyer.
UNITY PREPARATORY: S&P Assigns 'BB' Rating on 2023 Revenue Bonds
----------------------------------------------------------------
S&P Global Ratings assigned its 'BB' rating to Build NYC Resource
Corp.'s proposed $22.9 million series 2023 revenue bonds, to be
issued for 584 Driggs FONB, LLC on behalf of Unity Preparatory
Charter School of Brooklyn (Unity Prep), N.Y. The outlook is
stable.
The 'BB' rating reflects S&P's view of the school's relatively
small but stable enrollment base, modest academic performance
relative to local district and state proficiency rates, variable
financial performance in recent years, and risk, as with all
charter schools, that the charter can be revoked for nonperformance
of its terms or for financial distress, and a final maturity of the
bonds in 2063 that will require multiple charter renewals.
"The stable outlook reflects our expectation that Unity Prep will
maintain enrollment at current levels and will produce break-even
to positive results and sufficient MADS coverage over the outlook
period as operations normalize from the recent nonrecurring
activities related to facility enhancements and the pandemic," said
S&P Global Ratings credit analyst Jesse Brady.
S&P said, "We could consider a negative rating action if demand
softens, such that lower enrollment results in sustained operating
deficits leading to insufficient MADS coverage, or a material
erosion of the school's cash position. We would also view
additional debt issuance negatively, given an already elevated
leverage position; however, management has indicated there are no
plans to do so at this time.
"We could consider a positive rating action if the school can
demonstrate a more consistent trend of positive operations and
stronger lease-adjusted MADS coverage, while at the same time
improving and maintaining higher cash levels for the medium-to-long
term. We would also view positively demonstrated improvement
relative to the findings identified in the authorizer's recent
charter renewal report."
US STEEL: Fitch Affirms LongTerm IDR at 'BB', Outlook Stable
------------------------------------------------------------
Fitch Ratings has affirmed United States Steel Corporation's (U. S.
Steel) Issuer Default Rating (IDR) at 'BB'. The Rating Outlook is
Stable. Fitch has also affirmed the company's unsecured notes and
unsecured environmental revenue bonds at 'BB'/'RR4' and affirmed
the ABL credit facility at 'BBB-'/'RR1'.
The ratings and Outlook reflect Fitch's expectation EBITDA leverage
will be remain at or below 2.5x on average through 2026 in addition
to Fitch's view that the majority of announced capex, including the
remaining portion of capex for the new $3 billion three-million-ton
mini mill (Big River 2), will likely be funded with a combination
of cash on hand and future cashflow generation.
The ratings also reflect U. S. Steel's shifting focus to flexible
and lower-cost, more-efficient mini mills as evidenced by the
acquisition of Big River Steel Holdings LLC and the company's
announcement of its intention to build Big River 2, which began
construction in first-quarter 2022.
KEY RATING DRIVERS
Conservative Leverage Expectations: Fitch expects EBITDA leverage,
roughly 1.3x at March 31, 2023, to remain at or below 2.5x on
average through 2026. U. S. Steel reduced total debt outstanding by
more than $2.0 billion since first-quarter 2021 and has no
outstanding borrowings on its credit facilities. Fitch expects
EBITDA to moderate from the 2021/2022 peak of around $5 billion per
year, but to average around $1.5 billion-$2.0 billion annually
through 2026. This compares with Fitch-calculated EBITDA of
approximately $1.5 billion during a previous high point in the
cycle in 2018.
Best for All Strategy: Fitch views U. S. Steel's strategy to invest
in flexible and lower-cost, less capital-intensive, more-efficient
assets positively and believes it will improve EBITDA and the
company's overall cost position and operating profile resulting in
reduced earnings volatility through the cycle. U. S. Steel acquired
a 49.9% equity interest in Big River Steel in fourth-quarter 2019,
an electric arc furnace (EAF) facility with 3.3 million tons of
annual capacity, and acquired the remaining equity interest in
first-quarter 2021.
In first-quarter 2022, U. S. Steel began construction on a new $3
billion three-million-ton mini mill (Big River 2), with production
expected to begin in 2024. Fitch believes Big River 2, in addition
to the new value-added lines being constructed at Big River Steel,
will lower the company's overall cost position, improving margins
and EBITDA generation.
Strong Liquidity Position: U. S. Steel generated over $1.7 billion
of Fitch-calculated FCF in 2022, and the company had cash and cash
equivalents of roughly $2.8 billion as of March 31, 2023. Fitch
believes cash on hand in combination with future cashflow
generation will likely be sufficient to fund the majority of the
new $3 billion investment to build Big River 2 in addition to other
strategic capex. The ability to fund capex with cash on hand and
internally generated cash lowers the risk of compromising the
balance sheet if there is a period of prolonged economic weakness.
Strategic Capex Improves EBITDA: U. S. Steel began construction on
a $450 million nongrain-oriented (NGO) electrical steel line at BRS
in third-quarter 2021. Upon completion, U. S. Steel will be one of
two producers of NGO electrical steel in the U.S. The 200,000-ton
NGO electrical steel line is expected to deliver first coil in
third-quarter 2023 and be available to meet growing electric
vehicle demand expected in North America over the coming years, as
NGO electrical steel is a critical component of motors used in
hybrid/electric vehicles.
U. S. Steel also announced a 325,000-ton galvanizing/galvalume line
at BRS in third-quarter 2021. Fitch expects this $280 million
investment to expand the company's presence in value-added
construction and appliance applications. Both the NGO line and
galvanizing/galvalume lines are expected to enhance BRS's product
mix.
U. S. Steel began producing pig iron in 4Q22 at a new $60 million
pig iron facility constructed at Gary Works. The facility is
expected to have production capacity of around 500,000 tons of pig
iron intended to be consumed internally at its EAFs and provide
nearly 50% of BRS's current ore-based metallics requirements. In
third-quarter 2022, U. S. Steel began construction of a $150
million direct reduced (DR)-grade pellet facility at its Keetac
iron ore operations which is expected to be operational in 2024.
The new facility provides the ability to produce DR-grade pellets
for EAFs in addition to providing the flexibility to continue
producing BF-grade pellets and optionality to ship to third
parties.
DERIVATION SUMMARY
U. S. Steel is comparable in size and has a similar operating
profile compared with Cleveland-Cliffs (BB-/Stable) as both
companies are integrated and have both blast furnace and EAF
production, but are primarily blast furnace producers. U. S. Steel
is more diversified by product and geography, with slightly more
favorable credit metrics than Cleveland-Cliffs.
U. S. Steel is larger in terms of annual shipments compared with
EAF steel producer Commercial Metals Company (CMC; BB+/Positive).
U. S. Steel has higher product and end-market diversification
compared with CMC, but CMC has historically had lower leverage
metrics and its profitability is less volatile, resulting in more
stable margins and leverage metrics through the cycle. U. S. Steel
is larger in terms of total shipments, but it is less profitable
with weaker credit metrics compared with EAF producer Steel
Dynamics, Inc. (BBB/Stable) and smaller with less favorable metrics
compared with EAF producer Nucor Corporation (A-/Stable).
KEY ASSUMPTIONS
Fitch's Key Assumptions Within the Rating Case for the Issuer:
- Declining flat-rolled steel prices through 2026;
- Combined Flat-rolled segment and Mini Mill segment steel
shipments of approximately 11.0 million tons-11.5 million
tons in 2023, increasing as Big River 2 comes online in
2024;
- Capex of approximately $2.5 billion in 2023, declining
significantly thereafter following completion of
Big River 2;
- Big River 2 is funded primarily with internally
generated cash and cash on hand;
- Share repurchases made with excess cash flow.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- Visibility into completion and start of commercial
production of Big River 2, in addition to the ability
to fund the project primarily with cash on hand and
internally generated cash;
- EBITDA margins sustained above 12%;
- EBITDA leverage sustained below 2.3x.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- A material weakening of domestic steel market conditions
leading to EBITDA leverage sustained above 3.3x;
- EBITDA margins sustained below 10%.
LIQUIDITY AND DEBT STRUCTURE
Solid Liquidity: U. S. Steel had roughly $2.84 billion of cash and
cash equivalents as of March 31, 2023 and roughly $2.44 billion, in
aggregate, available under its $1.75 billion asset-based loan (ABL)
credit facility due 2027, its U. S. Steel Kosice, s.r.o. (USSK)
credit facilities due 2026 and the Big River ABL due 2026.
Under the USSK credit agreement, USSK is required to maintain a net
debt to EBITDA of less than 3.5x at June 30 and Dec. 31 each year
beginning Dec. 31, 2021. The company has determined that it may not
be able to comply with the EBITDA ratio covenant at June 30, 2023,
which could partially or fully limit USSK's ability to borrow under
the USSK credit agreement. However, U. S. Steel believes USSK will
have adequate cash on hand for the period ending June 30, 2023 and
will not need to borrow under the USSK credit agreement (no
borrowings outstanding currently).
ISSUER PROFILE
U. S. Steel is an integrated steel producer of flat-rolled steel
and tubular products with operations in North America and Europe.
The company has a combination of blast furnace and electric arc
furnace capacity.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
United States
Steel Corporation LT IDR BB Affirmed BB
senior
unsecured LT BB Affirmed RR4 BB
senior secured LT BBB- Affirmed RR1 BBB-
VERITAS FARMS: Issues $3M Convertible Notes to Cornelis F. Wit
--------------------------------------------------------------
Veritas Farms, Inc. disclosed in a Form 8-K filed with the
Securities and Exchange Commission that it issued a secured
convertible credit line promissory note in the principal amount for
up to $3,000,000 to the Cornelis F. Wit Revocable Living Trust, a
principal shareholder who holds securities of the Company that
constitute a majority of the voting securities of the Company.
The 2023 Secured Convertible Promissory Note includes and evidences
the outstanding indebtedness in the original principal amount of
$1,750,000 of the Company to the Wit Trust pursuant to previously
executed and delivered secured convertible promissory notes by the
Company for the benefit of the Wit Trust pursuant to the Amendment
to Secured Convertible Promissory Notes. The 2023 Secured
Convertible Promissory Note is secured by the Company's assets and
contains certain covenants and customary events of default, the
occurrence of which could result in an acceleration of the 2023
Secured Convertible Promissory Note. The 2023 Secured Convertible
Promissory Note is convertible as follows: aggregate loaned
principal and accrued interest under the 2023 Secured Convertible
Promissory Note may, at the option of the holder, be converted in
its entirety into shares of the Company's common stock at a
conversion price of $0.02 per share. The Note will accrue interest
on the aggregate amount loaned at a rate of 10% per annum. All
unpaid principal, together with any then unpaid and accrued
interest and other amounts payable under the 2023 Secured
Convertible Promissory Note, is due and payable if not converted
pursuant to the terms and conditions of the 2023 Secured
Convertible Promissory Note on the earlier of (i) Oct. 1, 2026, or
(ii) following an event of default.
Amendment to Previously Issued and
Outstanding Promissory Notes
On June 7, 2023, the Company and the Wit Trust entered into an
Amendment to Secured Convertible Promissory Notes, pursuant to
which the Company and the Wit Trust amended the following seven
previously executed secured convertible promissory notes held by
the Wit Trust: Secured Convertible Promissory Note dated Aug. 2,
2022 in the original principal amount of $250,000, the Secured
Convertible Promissory Note dated Aug. 17, 2022 in the original
principal amount of $250,000, the Secured Convertible Promissory
Note dated Sept. 6, 2022 in the original principal amount of
$250,000, the Secured Convertible Promissory Note dated Oct. 11,
2022 in the original principal amount of $250,000, the Secured
Convertible Promissory Note dated Nov. 16, 2022 in the original
principal amount of $250,000, the Secured Convertible Promissory
Note dated Jan. 3, 2023 in the original principal amount of
$250,000, and the Secured Convertible Promissory Note dated May 30,
2023 in the original principal amount of $250,000, collectively
which total the aggregate outstanding principal amount of
$1,750,000. The Amendment to Secured Convertible Promissory Notes
amended, replaced and superseded the Notes in their entirety, and
will be included in and part of the 2023 Secured Convertible
Promissory Note.
About Veritas
Fort Lauderdale, Florida-based Veritas Farms, Inc. --
www.TheVeritasFarms.com -- is a vertically-integrated agribusiness
focused on growing, producing, marketing, and distributing superior
quality, whole plant, full spectrum hemp oils and extracts
containing naturally occurring phytocannabinoids. Veritas Farms
owns and operates a 140 acre farm in Pueblo, Colorado, capable of
producing over 200,000 proprietary full spectrum hemp plants which
can potentially yield a minimum annual harvest of 250,000 to
300,000 pounds of outdoor-grown industrial hemp.
Veritas Farms reported a net loss of $5.14 million for the year
ended Dec. 31, 2022, compared to a net loss of $7.07 million for
the year ended Dec. 31, 2021. As of Dec. 31, 2022, the Company had
$6.79 million in total assets, $7.40 million in total liabilities,
and a total shareholders' deficit of $606,277.
Hackensack, NJ-based Prager Metis CPAs LLC, the Company's auditor
since 2018, issued a "going concern" qualification in its report
dated April 17, 2023, citing that the Company has sustained
substantial losses from operations since its inception. As of and
for the year ended Dec. 31, 2022, the Company had an accumulated
deficit of $39,474,622, and a net loss of $5,543,908. These
factors, among others, raise substantial doubt about the ability of
the Company to continue as a going concern within a year from the
date the financial statements are issued. Continuation as a going
concern is dependent on the ability to raise additional capital and
financing, though there is no assurance of success.
VICE GROUP: Court OKs $60MM DIP Loan on Final Basis
---------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
authorized Vice Group Holding Inc. and affiliates to use cash
collateral and obtain postpetition financing, on a final basis.
The Debtors obtained a senior secured superpriority
debtor-in-possession multi-draw term loan facility which consists
of a multi-draw credit loan facility in an aggregate principal
amount of up to $60 million, which:
(a) were made available to the Debtors (i) in a single new
money draw in the initial amount of $5 million, in accordance with
the terms and conditions set forth in the DIP Credit Agreement, and
effective upon entry of the Interim Order, and (ii) in a roll-up of
approximately $25 million in Prepetition Senior Secured Term Loans
in accordance with the terms and conditions set forth in the DIP
Credit Agreement and effective upon entry of the Interim Order;
and
(b) will be made available to the Debtors in (i) new money
draws of the remaining principal amount of $5 million (subject to
increase) to fund the GUC Cash Reserve in accordance with the terms
of the DIP Credit Agreement and the DIP Budget, effective solely
upon entry of the Final Order, and (ii) in a roll-up of
approximately $25 million in outstanding Prepetition Senior Secured
Term Loans in accordance with the terms and conditions set forth in
the DIP Credit Agreement and effective solely upon entry of the
Final Order.
Fortress Credit Corp. is the administrative agent and Wilmington
Trust, National Association, is the collateral agent under the DIP
Facility.
The DIP Facility compels the Debtors to meet these milestones:
i. The Debtors will have obtained approval of the Interim
Order by the Court no later than five days following the Petition
Date;
ii. The Debtors will have obtained approval of the Final Order
by the Court no later than 30 days following the Petition Date;
iii. The Debtors will have obtained an extension of the time
period to assume or reject non-residential leases of real property
no later than 30 days following the Petition Date;
iv. On the Petition Date, the Company will have filed a motion
to approve bidding and sale procedures, which will contain
customary "stalking horse" protections;
v. Within three days of the Petition Date, the Company will
have filed with the Bankruptcy Court a stalking horse asset
purchase agreement, which will provide that the DIP Lenders or
their designee will serve as the stalking horse bidder for certain
of the Debtors' assets subject to overbids pursuant to the Bidding
Procedures Order. The Asset Purchase Agreement will be pursuant to
a credit bid of not less than the entire amount of all obligations
due under or in connection with the DIP Facility, which credit bid
right is expressly reserved for the benefit of the DIP Lenders in
the DIP Orders, whether pursuant to an Auction or plan of
reorganization under Section 1129 of the Bankruptcy Code;
vi. Within 15 days of the Petition Date, the Company will have
obtained entry of an order approving the Bid Procedures;
vii. Within 35 days of the Petition Date, the Company will
conduct the Auction in accordance with the Bidding Procedures
Order;
viii. By no later than 40 days after the Petition Date, the Court
will conduct, to the extent necessary, the Sale Hearing and enter
an order approving the Sale Transaction; and
ix. By no later than 55 days following the Petition Date, the
Sale Transaction will have closed; provided that if regulatory
approvals associated with a Sale Transaction remain pending as of
such date, such date will be automatically extended to the date
that is the third Business Day following receipt of all necessary
regulatory approvals.
The DIP Facility will mature and be due and payable on the earliest
to occur of:
(i) the date that is six months after the Petition Date,
(ii) the date that all Loans will become due and payable in
full,
(iii) the effective date of a Chapter 11 Plan,
(iv) the date of consummation of a sale of all or substantially
all of the Debtors' assets under 11 U.S.C. section 363,
(v) the first business day on which the Interim Order expires
by its terms or is terminated, unless the Final Order has been
entered and become effective prior thereto,
(vi) conversion of any of the Chapter 11 Cases to a case under
Chapter 7 of the Bankruptcy Code or any Credit Party seeks such
conversion, unless otherwise consented to in writing by DIP Lenders
holding in excess of 50% of the total principal amount of loans and
commitments under the DIP Facility,
(vii) dismissal of any of the Chapter 11 Cases, unless otherwise
consented to in writing by the Requisite Lenders, and
(viii) the date on which the Final Order ceases to be in full
force and effect.
As of the Petition Date, the Debtors collectively have outstanding
prepetition funded debt obligations, including capitalized
paid-in-kind interest, in the aggregate amount of approximately
$834 million (exclusive of other accrued and unpaid interest fees,
penalties, or premiums). The Prepetition Funded Debt Obligations
comprise approximately (i) $505.3 million of secured obligations
and (ii) $328.7 million of unsecured obligations.
Certain of the Debtors have outstanding obligations under an
uncommitted multicurrency overdraft facility pursuant to the
Uncommitted Overdraft Facility, dated October 14, 2016, as amended
or supplemented from time to time, between Vice Europe Holding
Limited and JPMorgan Chase Bank, N.A. The Prepetition Overdraft
Facility was established to be available from time to time to cover
overdrafts on the Debtors' accounts with JPMC. Initially, the
Prepetition Overdraft Facility had an overdraft limit of GB£3
million; however, pursuant to an amendment letter dated September
25, 2017, the overdraft limit was increased to GB£10 million.
As of the Petition Date, there are outstanding obligations under
the Prepetition Overdraft Facility of approximately $9.8 million.
JPMC has setoff rights against cash deposits of certain Debtors and
also is secured pursuant to an Assignment of Deposits among Debtor
Vice Media LLC and JPMC, dated May 1, 2019, pledging certain
deposit accounts held by Vice Media LLC and its subsidiaries in
favor of JPMC as security for costs and expenses incurred by JPMC
in connection with the covered bank accounts. The Prepetition
Overdraft Facility is also a secured "Cash Management Agreement"
under the Prepetition Credit Agreement and is supported by a pari
passu security interest in the Prepetition Collateral.
In the final days leading up to the Chapter 11 Cases, Wipro
obtained a judgment against VML in the amount of approximately $9.9
million.
Subsequently, on May 5, 2023, Wipro commenced the process of
enforcing its judgment through the purported service of a
restraining notice under CPLR section 5222(b), limiting the ability
of VML to transfer or dispose of its assets, including its cash on
hand.
On May 10, 2023, Wipro served JPMC with a restraining notice
similar to the Restraining Notice received by the Debtors, which
sought to impose a stay on withdrawals from the VICE Media JPMC
Accounts, and shortly thereafter, the Prepetition Collateral Agent
sought to exercise remedies under their deposit account control
agreements for all of the Debtors' accounts at JPMC, including the
Vice Media JPMC Accounts. The Debtors understand that JPMC has
frozen the VICE Media JPMC Accounts pending an order from a court
that clarifies the control of the funds in the VICE Media JPMC
Accounts. The funds in the VICE Media JPMC Accounts are cash
collateral.
The freeze on the Vice Media JPMC Accounts has essentially shut off
much of the Debtors' liquidity. The lack of liquidity is a
particular concern for the Debtors as they rely heavily on the
services of freelancers and independent contractors. In addition,
due to the international nature of the Company's businesses, the
Debtors require liquidity to ensure that their non-Debtor foreign
subsidiaries are able to continue to operate in the ordinary course
of business.
As adequate protection for the use of cash collateral, the
Prepetition Administrative Agent, for the benefit of itself and the
Cash Management Bank, will receive replacement liens and security
interests in the DIP Collateral, including, subject to the entry of
the Final Order, the proceeds of avoidance actions, which liens
will be junior only to the Carve Out, the DIP Liens, the adequate
protection liens granted in favor of the Prepetition Secured
Parties, the liens securing the obligations under the Prepetition
Senior Secured Credit Agreement, and Prior Senior Liens.
A copy of the motion is available at https://urlcurt.com/u?l=iw2lzb
from Stretto, the claims agent.
A copy of the order is available at https://urlcurt.com/u?l=3jphHb
from Stretto, the claims agent.
About Vice Group Holding
Vice is a global, multi-platform media company with a collection of
powerful brands, producing premium award-winning content for a
highly engaged global youth audience. It creates thousands of
pieces of content each week globally, including editorial, digital
and social video, experiential events, commercials, music videos,
scripted and unscripted television, feature documentaries, and
movies.
Vice Group Holding, Inc. and its affiliates sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No.
23-10738) on May 15, 2023. At the time of the filing, the Debtors
reported $500 million to $1 billion in both assets and
liabilities.
Judge John P. Mastando III oversees the cases.
The Debtors tapped Togut, Segal & Segal, LLP as bankruptcy counsel;
Shearman & Sterling, LLP as special counsel; PJT Partners, Inc. and
Liontree Advisors, LLC as financial advisors; and AP Services, LLC
as restructuring advisor. Frank Pometti of AP Services serves as
the Debtors' chief restructuring officer. Stretto, Inc. is the
claims and noticing agent and administrative advisor.
The U.S. Trustee for Region 2 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
VIPER ENERGY: Fitch Alters Outlook on 'BB-' LongTerm IDRs to Pos.
-----------------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Issuer Default Ratings
(IDRs) of Viper Energy Partners LP and Viper Energy Partners LLC at
'BB-'. Fitch also affirmed Viper Energy Partners LLC's senior
secured revolving credit facility at 'BB+'/'RR1' and Viper Energy
Partners LP's senior unsecured notes at 'BB-'/'RR4'. The Rating
Outlook has been revised to Positive from Stable.
The Positive Outlook reflects Viper's increasing size and scale,
strong credit metrics and expectations for consistent FCF
generation through the forecast. The company's production size,
proved reserves and mid-cycle EBITDA are nearing 'BB' category
thresholds and Fitch will look to resolve the Outlook in the next
12 to 18 months following continued growth.
KEY RATING DRIVERS
Unique Asset Base: Viper's asset base is unique relative to
growth-oriented independent E&P's; the company owns and acquires
mineral and royalty interests in oil and gas properties across the
Permian Basin. Viper's net royalty acreage is highly contiguous and
largely undeveloped (less than 30% developed in the core of the
Permian). Given the royalty structure, the asset requires no
operating expenses and provides organic growth opportunities
without any capital costs, resulting in higher margins than
operating peers in the Permian.
FANG-Linked Production: Viper's net royalty production attributed
to Diamondback Energy, Inc.'s (the parent; FANG) operating activity
is forecast to be maintained at approximately 60%-65%. FANG's
highest return wells are on Viper's net royalty acres in the
Northern Midland Basin, and management expects FANG will continue
to target this acreage in the near and medium term. Fitch believes
this linkage provides a production floor and drives Viper's
production growth through the forecast. Fitch expects Viper's
production growth from third party operators to remain in the low
to mid-single-digit range.
In general, Viper has strong insight into Diamondback's volumes and
drilling plans, reducing volumetric and cash flow risks, and
considerably less visibility and certainty around volumes from
third-party non-operated interests. Consolidation of mineral
interests on third-party acreage could result in additional cash
flow risk in the longer term. Viper attempts to offset this risk by
targeting royalty interests on acreage that is highly contiguous
and core to targeted third-party operators.
Distribution Policy Provides Flexibility: Management's variable
distribution rate of at least 75% of FCF rewards shareholders,
while the remaining 25% provides Viper additional financial
flexibility and capital optionality. The company's high margin
profile and lack of capital costs supports robust FCF generation
throughout Fitch's price deck.
Fitch expects post-dividend FCF to be allocated toward repayment of
the revolver in the near term, and believes a portion could be used
for M&A funding in the medium term, reducing the company's
dependency on capital markets. Fitch does not expect the
distribution rate to reach its previous level of 100%, but
recognizes a payout increase could have negative implications for
future M&A growth and funding.
Sub-1.5x Leverage Metrics: Fitch forecasts Viper's debt/EBITDA of
1.2x in 2023 at Fitch's $80 WTI price. Fitch expects leverage will
remain below 1.5x in the outer years of the forecast following
continued repayment of the revolver borrowings and low to
mid-single-digit production growth.
Near-Term Hedging Program: Fitch expects Viper to maintain a
near-term focused hedge program to protect from the extreme
downside while maximizing upside exposure. Currently, the company
is hedging approximately 45% of its 2H23 oil production through
deferred premium put options with an average strike price of
approximately $55. Management is also hedging Midland-Cushing oil
basis and WAHA natural gas basis to protect against in-basin price
fluctuations, which have been volatile recently.
As leverage continues to improve, Fitch believes management will
reduce overall hedge coverage, but will continue to retain extreme
downside protection through puts in order to maintain liquidity,
fund distributions and repay debt.
Uplift from Linkage with Parent: Viper's IDR receives a one-notch
uplift due to the moderate linkage between the company and its
higher rated parent, Diamondback. The linkage reflects the lack of
strong legal ties (debt guarantees, cross defaults), weaker
strategic ties given Viper's low overall financial contribution and
moderate operational ties as the companies have integrated
management personnel and since Diamondback generates stronger unit
economics on Viper acreage.
DERIVATION SUMMARY
Viper is an independent E&P focused on owning the mineral interests
of the liquids-oriented Delaware and Midland basins with 1Q23 net
production of 35.0 mboe/d (58% oil). Production size, due to the
nature of the royalties business, is substantially smaller than its
'BB' category E&P peers Matador Resources Company (BB-/Stable;
140-145 Mboepd pro forma the Advanced Energy Partners transaction),
SM Energy Company (BB-/Stable; 146 Mboepd) and Vermilion Energy
Inc. (BB-/Stable; 82 Mboepd).
As a minerals owner, Viper has minimal operating costs, which
results in Fitch-calculated unhedged cash netback of $43.3/boe (85%
margin) for 1Q23, among the highest of Fitch's aggregate E&P peer
group. Viper's high unhedged cash netbacks and lack of capex result
peer-leading EBITDA margins and pre-dividend FCF margins. The
company's current 75% distribution rate should facilitate positive
FCF going forward.
On a debt/EBITDA basis, Fitch forecasts Viper's leverage at 1.2x in
2023 and is forecast to remain below 1.5x in the outer years of the
base case at mid-cycle prices through production growth and
reduction of revolver borrowings. Debt/EBITDA metrics are in line
with the 'BB' category thresholds and Fitch's Permian-focused E&P
peer group.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within the Rating Case for the Issuer
include:
- West Texas Intermediate (WTI) oil prices of $80/barrel in 2023,
$70 in 2024, $60 in 2025, and $50 in 2026;
- Henry Hub natural gas prices of $3.50/mcf in 2023 and 2024,
$3.00/mcf in 2025, and $2.75/mcf in 2026;
- Single-digit production growth throughout the forecast;
- Distribution rate of 75% in 2023 and thereafter;
- FCF after dividends used to repay revolver borrowings;
- No material M&A activity through the forecast.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- Improving operational and/or strategic ties to Diamondback that
leads to a stronger parent-subsidiary linkage;
- Increased size and scale resulting in mid-cycle EBITDA at or
above $500 million while maintaining strong relationship with
Diamondback;
- Mid-cycle debt/EBITDA maintained below 2.0x on a sustained
basis;
Leverage sensitivities are consistent with higher-rated peers and
are unlikely to change upon future rating upgrades.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- Production trending below 15-20 mboe/d and/or increased
volumetric risk;
- Erosion in Diamondback's credit profile, or material reduction
in parent support for Viper (on an ownership, acreage and/or
production basis);
- Change in financial policy, particularly publicly stated
leverage targets and M&A funding appetite;
- Mid-cycle debt/EBITDA above 3.0x on a sustained basis;
LIQUIDITY AND DEBT STRUCTURE
Adequate Liquidity: At March 31, 2023, Viper had cash of $9 million
and availability under the revolving credit facility of $230
million ($270 million outstanding; $500 million of elected
commitments under the $580 million borrowing base). Throughout
2022, Viper retained 25% of distributable FCF to strengthen the
balance sheet by repaying revolver borrowings and repurchasing the
senior unsecured notes at a discount. Fitch believes management's
financial policy decisions will continue to reward shareholders
through distributions and buybacks in the near term, but will also
allow for repayment of the revolver.
Simple Debt Structure: Viper's senior secured revolver matures in
June 2025 and the company's 5.375% senior unsecured notes are due
in November 2027.
Distribution Limitations: Viper's distributions are limited by the
indenture under the company's 5.375% senior unsecured notes due
2027. Outside of the builder basket, Viper is able to make
restricted payments as long as leverage is under 3.0x.
Additionally, to the extent the company is above 3.0x, Viper has a
general basket up to the greater of $50 million or 4% of ACNTA.
ISSUER PROFILE
Viper Energy Partners, LP and its subsidiary Viper Energy Partners
LLC own the oil and gas mineral, royalty, overriding royalty, and
similar interests operated primarily by its parent company
Diamondback Energy, Inc. and third parties in the Permian and Eagle
Ford basins.
ESG CONSIDERATIONS
Viper's ESG Relevance Score for Group Structure was revised from
'4' to '3' following the simplification of the organizational
structure after Diamondback acquired all of the remaining publicly
held common units of Rattler Midstream LP.
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Viper Energy
Partners LLC LT IDR BB- Affirmed BB-
senior secured LT BB+ Affirmed RR1 BB+
Viper Energy
Partners LP LT IDR BB- Affirmed BB-
senior
unsecured LT BB- Affirmed RR4 BB-
VISIONARY LABELS: Unsecureds Will Get 25% Dividend over 96 Months
-----------------------------------------------------------------
Visionary Labels and Packaging, LLC, filed with the U.S. Bankruptcy
Court for the Central District of California a Plan of
Reorganization for Small Business dated June 15, 2023.
The Debtor is a leading provider of packaging solutions for its
clients' canned packaging needs across the United States.
The Debtor allegedly has a total of approximately $2,174,202.33 in
secured claims; $37,600 in priority claims, and $1,713,444.84 in
general unsecured claims, all subject to review during the claim
objection process.
The Plan Proponent's financial projections show that the Debtor
will have Projected Disposable Income from its operations of three
years of approximately $213,846. The final Plan payment is
expected to be paid eight years from the effective date.
This Plan of Reorganization proposes to pay creditors of the Debtor
from cashflow from operations.
Class 17 consists of non-priority unsecured creditors which shall
be paid 25% dividend over 96 months due and payable every 3 months.
This Class is impaired.
Class 18 consists of Convenience Class of non-priority unsecured
creditors which shall be paid in full on effective date. This Class
is impaired.
All of the Debtor's equity interests shall vest in the Debtor's
sole member, Frank R. Sanchez upon confirmation.
The Plan will be funded by the Debtor's business earnings.
A full-text copy of the Plan of Reorganization dated June 15, 2023
is available at https://urlcurt.com/u?l=YABAop from
PacerMonitor.com at no charge.
Attorney for the Plan Proponent:
Giovanni Orantes, Esq.
The Orantes Law Firm, PC
3435 Wilshire Blvd., Suite 2920
Los Angeles, CA 90010
Telephone: (213) 389-4362
Facsimile: (877) 789-5776
Email: go@gobklaw.com
About Visionary Labels and Packaging
Visionary Labels and Packaging, LLC, is in the business of labeling
and providing labeled cans to beer brewers and other makers of
canned beverages. The company is based in Fontana, Calif.
Visionary Labels and Packaging sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 23-11032) on
March 17, 2023. In the petition signed by its chief executive
officer, Frank Sanchez, the Debtor disclosed up to $500,000 in
assets and up to $10 million in liabilities.
Judge Magdalena Reyes Bordeaux oversees the case.
Giovanni Orantes, Esq., at The Orantes Law Firm, A.P.C., is the
Debtor's legal counsel.
VOYAGER DIGITAL: Confirmed Plan Declared Effective May 19
---------------------------------------------------------
Voyager Digital Holdings, Inc., and its debtor-affiliates announced
that the effective date of the Third Amended Joint Plan occurred on
May 19, 2023. Each of the conditions precedent to consummation of
the plan has been satisfied or waived in accordance with the plan
and the confirmation order.
According to Troubled Company Reporter on March 17, 2023, Judge
Michael E. Wiles has entered an order approving the Second Amended
Disclosure Statement and confirming the Third Amended Joint Plan of
Voyager Digital Holdings, Inc., et al.
The following modifications and amendments to the Plan and its
supporting documents either have already been made or hereby are
deemed to have been made:
A. Article VIII.C of each filed versions of the Plan is hereby
stricken in its entirety and Article VIII.C of the Plan is deemed
to have been revised to state as follows:
"Effective as of the Effective Date, to the fullest extent
permissible under applicable law and without affecting or limiting
either the Debtor release or the third-party release, and except as
otherwise specifically provided in the Plan, no Exculpated Party
shall have or incur, and each Exculpated Party is hereby exculpated
from, any liability for damages based on the negotiation, execution
and implementation of any transactions or actions approved by the
Bankruptcy Court in the Chapter 11 Cases, except for Causes of
Action related to any act or omission that is determined in a Final
Order to have constituted actual fraud, willful misconduct, or
gross negligence; provided that nothing in the Plan shall limit the
liability of professionals to their clients pursuant to N.Y. Comp.
Codes R. & Regs. tit. 22 § 1200.8 Rule 1.8(h)(1) (2009).
The Exculpated Parties have, and upon Consummation of the
Plan shall be deemed to have, participated in good faith and in
compliance with the applicable laws with regard to the solicitation
of votes.
In addition, the Plan contemplates certain rebalancing
transactions and the completion of distributions of
cryptocurrencies to creditors. The Exculpated Parties shall have no
liability for, and are exculpated from, any claim for fines,
penalties, damages, or other liabilities based on their execution
and completion of the rebalancing transactions and the distribution
of cryptocurrencies to creditors in the manner provided in the
Plan.
Confirmation of the Plan requires the Exculpated Parties to engage
in certain rebalancing transactions and distributions of
cryptocurrencies and the fact that no regulatory authority has
taken the position during the Combined Hearing that such conduct
would violate applicable laws or regulations. Nothing in this
provision shall limit in any way the powers of any Governmental
Unit to contend that any rebalancing transaction should be stopped
or prevented, or that any other action contemplated by the Plan
should be enjoined or prevented from proceeding further. Nor does
anything in this provision limit the enforcement of any future
regulatory or court order that requires that such activities either
cease or be modified, or limit the penalties that may be applicable
if such a future regulatory or court order is issued and is
violated. Similarly, nothing herein shall limit the authority of
the Committee on Foreign Investment of the United States to bar any
of the contemplated transactions. Nor does anything in this
provision alter the terms of the Plan regarding the compliance of
the Purchaser with applicable laws in the Unsupported Jurisdictions
before distributions of cryptocurrency occur in those Unsupported
Jurisdictions.
B. The following proviso is deemed to have been added to Article
I.A.60 of the Plan:
"provided that any documents included in subsection (i) only
include documents arising on or after the Petition Date but prior
to the Effective Date and that are within the jurisdiction of the
Bankruptcy Court";
C. The following definition is deemed to have been added as
Article I.A.103 of the Plan:
"'Investigated Matters' means (i) the Debtors' loans to third
parties, including the 3AC Loan; (ii) the diligence performed in
connection with the loans described in (i); (iii) the formation and
function of the Debtors' Risk Committee; (iv) the Debtors' staking
of cryptocurrency assets; (v) the Debtors' regulatory compliance;
(vi) the Debtors' communications with the public; and (vii) the
Debtors' pre-petition transfers to Released Voyager Employees
(including customer withdrawals) within one (1) year of the
Petition Date";
D. Article I.A.139 of the Plan is deemed to have been revised to
state:
"'Released Voyager Employees' means the following directors,
officers, and members of senior management of the Debtors serving
in such capacity on or after the Petition Date whose conduct was
reviewed as part of the Special Committee Investigation: Jennifer
Ackert, David Brill, Brian Brooks, David Brosgol, Jonathan
Brosnahan, Dan Constantino, Stephen Ehrlich, Philip Eytan, Rakesh
Gidwani, Gerard Hanshe, Marshall Jensen, Pam Kramer, Manisha
Lalwani, Brian Nistler, Ashwin Prithipaul, Evan Psaropoulos, Brian
Silard, Glen Stevens, Krisztian Toth, and Ryan Whooley (subject to
the limitations contained in Article IV.F and Article IV.G of the
Plan)";
E. The following language is deemed to have been removed from
Article VIII.A:
"in whole or in part, the Debtors (including the management,
ownership, or operation thereof), their capital structure, the
purchase, sale, or rescission of the purchase or sale of any
Security of the Debtors, the subject matter of, or the transactions
or events giving rise to, any Claim or Interest that is treated in
the Plan, the business or contractual arrangements between any
Debtor and any Released Party" and replaced with "the Investigated
Matters";
F. Article IV.H.5(c) of the Plan is deemed to have been revised
to state:
"appointing an independent director at each Debtor to act as
a fiduciary for such Debtor entity solely in connection with
matters that may implicate actual or potential intra-Debtor
conflicts of interests between the Plan Administrator and the
applicable Debtor(s) or Wind-Down Debtor including (i) the
Intercompany Claims; (ii) the Alameda Loan Facility Claims; (iii)
the Signatory Governmental Claims (as defined in the Governmental
Claimant Stipulation) asserted against TopCo; and (iv) any matter
involving the transfer or allocation of value, claims, or costs
between or among the Debtors, but only to the extent that such
issues continue to implicate actual or potential intra Debtor
conflicts of interests between the Plan Administrator and the
applicable Debtor(s) or Wind-Down Debtor";
G. Article VI.C.6 of the Plan is deemed revised to state:
"In the event that any distribution to any Holder is returned
as undeliverable and/or otherwise remains unclaimed, the Plan
Administrator shall use reasonable efforts to contact such Holder;
provided that no further distributions to such Holder shall be made
unless and until the Plan Administrator has determined the
then-current address of such Holder, at which time such
distribution shall be made to such Holder without interest;
provided, further, that such distributions shall be deemed
unclaimed property under section 347(b) of the Bankruptcy Code at
the expiration of six months from the applicable Distribution Date.
After such date, all unclaimed property or interests in property
shall revert to the Wind-Down Debtor automatically and without need
for a further order by the Bankruptcy Court (notwithstanding any
applicable federal, provincial, or state escheat, abandoned, or
unclaimed property laws to the contrary), and the Claim or Interest
of any Holder to such property or interest in property shall not be
entitled to any distributions under the Plan.
A distribution shall be deemed unclaimed if a Holder has not:
(a) accepted a particular distribution or, in the case of
distributions made by check, negotiated such check; (b) given
notice to the Wind-Down Debtor of an intent to accept a particular
distribution; (c) responded to the Wind-Down Debtor's requests for
information necessary to facilitate a particular distribution; or
(d) taken any other action necessary to facilitate such
distribution";
H. All references to section 1145 of the Bankruptcy Code and
related provisions in the Plan have been removed;
I. References to "Confirmation Date" in Article II.B.1 of the
Plan are deemed revised to state "Effective Date"; and
J. The Asset Purchase Agreement has been and is deemed to be
amended to contain the following provisions:
1. There will be a two-week period for Account Holders to opt
out of transferring (i) selfies, (ii) uploaded IDs or bank
statements and (iii) bank account information to the Purchaser. Any
opted out information would not be acquired by the Purchaser in the
Sale Transaction. The opt out notice will be provided by the
Debtors at the Debtors' expense;
2. The Seller Expense Start Date will be moved back to April
1, 2023 (from March 18, 2023);
3. If the Purchaser is ready to close by April 1, 2023
(assuming closing conditions are satisfied or waived by the
Purchaser) and the Seller is not (including because the Seller
declines to waive any Closing conditions, other than breaches or
defaults by the Purchaser), then the Seller will cease to have
Seller Expense reimbursement protection thereafter;
4. Each of the Seller and Purchaser acknowledge that (i) the
closing condition relating to entry and finalization of the Asset
Purchase Agreement Order has been satisfied and (ii) to its
knowledge, there is no breach of the Asset Purchase Agreement by
the other party as of the date that this Confirmation Order is
entered.
As evidenced by the Voting Report, Class 3 (Account Holder Claims),
Class 4A (OpCo General Unsecured Claims), Class 4B (HoldCo General
Unsecured Claims), and Class 4C (TopCo General Unsecured Claims)
voted to accept the Plan in accordance with section 1126 of the
Bankruptcy Code.
About Voyager Digital Holdings
Based in Toronto, Canada, Voyager Digital Holdings Inc. --
https://www.investvoyager.com/ -- runs a cryptocurrency platform.
Voyager claims to offer a secure way to trade over 100 different
crypto assets using its easy-to-use mobile application. Through its
subsidiary Coinify ApS, Voyager provides crypto payment solutions
for both consumers and merchants around the globe.
Voyager Digital Holdings Inc. and two affiliates sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead
Case No. 22-10943) on July 5, 2022. In the petition filed by
Stephen Ehrlich, chief executive officer, the Debtors estimated
assets and liabilities between $1 billion and $10 billion.
Judge Michael E. Wiles oversees the cases.
The Debtors tapped Kirkland & Ellis, LLP as general bankruptcy
counsel; Berkeley Research Group, LLC as financial advisor; Moelis
& Company as investment banker; Consello Group as strategic
financial advisor; Deloitte Tax, LLP as tax services provider; and
Deloitte & Touche, LLP as accounting advisor. Stretto, Inc. is the
claims agent.
On July 19, 2022, the U.S. Trustee for Region 2 appointed an
official committee of unsecured creditors in these Chapter 11
cases. The committee tapped McDermott Will & Emery, LLP as
bankruptcy counsel; FTI Consulting, Inc. as financial advisor;
Cassels Brock & Blackwell, LLP as Canadian counsel; and Epiq
Corporate Restructuring, LLC as noticing and information agent.
The committee also tapped the services of Harney Westwood &
Riegels, LP in connection with Three Arrows Capital Ltd.'s
liquidation proceedings in British Virgin Islands.
On July 6, 2022, the Debtors filed a joint Chapter 11 plan of
reorganization.
* * *
Following an auction process, the Debtors in September 2022
selected the bid submitted by FTX US' West Realm Shires Inc. as the
winning bid for the assets. But after a series of events, FTX
collapsed in November 2022, before the sale could be completed.
After reopening bidding, Voyager Digital selected the offer from
U.S. exchange BAM Trading Services Inc. (doing business as
"Binance.US") as the highest and best bid for its assets. Binance's
bid is valued at $1.022 billion.
VROON: Norton Rose Advised Creditors on Parallel Restructuring
--------------------------------------------------------------
Global law firm Norton Rose Fulbright has advised a committee of
secured creditors on the first-of-its-kind restructuring of
international shipping company Vroon, which completed on 12 June
2023.
This was the first restructuring to be carried out using a parallel
English scheme of arrangement and Dutch WHOA plan.
This restructuring involved certain lenders receiving
participations in a new syndicated secured facility, while other
lenders had their facilities amended as well as a debt-for-equity
swap.
Vroon operates and manages a fleet of over 100 vessels and is
headquartered in the Netherlands. Norton Rose Fulbright has been
advising the lenders on their circa $900 million of exposure for a
number of years.
The team was led by Partners James Stonebridge, Omar Salah and
Richard Howley. A separate team acted for GLAS as agent and was led
by Partners Kirstin Russell and Yke Lennartz. The team was
supported by over 120 lawyers from London, Newcastle, Paris,
Amsterdam, Luxembourg, New York, Canada, Singapore, Thailand and
Italy, and involved teams from restructuring, shipping, corporate,
disputes, pensions, antitrust and competition, and tax.
James Stonebridge, who led from London, commented:
"We are delighted this restructuring has now come to a successful
conclusion. This was a fascinating and complex deal to work on, and
again highlights our market leading practice in shipping
restructuring assignments."
Omar Salah, who led from Amsterdam, commented:
"It has been a privilege to work on the first-ever Dutch WHOA
proceeding with a parallel English scheme of arrangement. This
matter showcases that we are at the forefront of ground-breaking
global restructurings. We are grateful to our clients for
entrusting us with their most complex cross-border
restructurings."
The core team acting for the committee included: Gemma Long, Manhal
Zaman, Jade Porter, Nicole McKenzie, Symone Malcolm, Matthew
Roderick, Julie Walton and Oliver Webber in London; Wouter
Hertzberger, Saskia Blockland, Bart Le Blanc, Mei Land Man,
Florence Elias, Rachid Chetouani, Joel Lozeman, Bas van Hooijdonk,
Jan de Wit and Joeri Noteborn in Amsterdam; Brian Devine and Julie
Pateman Ward in New York; Gennaro Mazzuoccolo, Leone Sgaravatti and
Chara Conti in Milan; Sue Ann Gan and Zara Ann Loh in Singapore;
David Bain and Robert Hanson in Vancouver; Tassanai Kiratisountorn
and Anuwat Chaisakdanukoon in Bangkok; Stéphane Braun and
Charlene Thibaudon in Luxembourg; and Alexandre Roth and Emilie
Jacques in Paris. The core team acting for GLAS included Susan
Rose, Andrew Coote and Koen Durlinger.
Norton Rose Fulbright's global restructuring lawyers advise on many
of the most significant cross-border bankruptcy, restructuring and
insolvency cases involving complex multi-jurisdictional issues and
regional insolvency laws. The team acts for a full range of in all
key industry sectors including: transport; energy, infrastructure
and resources; consumer markets; financial institutions; life
sciences and healthcare; and technology. With more than 50 offices
in over 30 countries, the multilingual and culturally proficient
130+ strong team of restructuring lawyers have the experience to
address issues posed by local laws and customs when cases cross
borders.
WESCO AIRCRAFT: U.S. Trustee Appoints Creditors' Committee
----------------------------------------------------------
The U.S. Trustee for Region 7 appointed an official committee to
represent unsecured creditors in the Chapter 11 cases of Wesco
Aircraft Holdings, Inc. and its affiliates.
The committee members are:
1. BOKF, NA, in its capacity as successor trustee
Attn: James R. Lewis, Senior Vice President
2405 Grand Blvd., Ste. 840
Kansas City, MO 64108
Phone: (201) 248-6587
Email: jlewis@bokf.com
2. Parker Hannifin Corporation
Attn: Donald Lear, Corporate Credit Manager
6035 Parkland Blvd.
Cleveland, OH 44124-4141
Phone: (216) 896-2239
Email: chip.lear@parker.com
3. Insight2Profit
Attn: Justin Zuchowski, Controller
3330 Richmond Road, Suite 200
Cleveland, OH 44122
Phone: (330) 347.0546
Email: jzuchowski@insight2profit.com
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About Incora
Incora -- http://www.incora.com/-- is the trade name for the group
of companies formed by Wesco Aircraft and Pattonair, a 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. Texas 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; Alvarez & Marsal North America, LLC as
financial advisor; and Quinn Emanuel Urquhart & Sullivan, LLP as
special litigation counsel. Kurtzman Carson Consultants, LLC is
the claims agent.
XEBEC ADSORPTION: CCAA Court Sets July 24 Claims Bar Date
---------------------------------------------------------
On
Sept. 29, 2022, FormerXBC Inc. formerly Xebec Adsorption Inc. and
certain of its subsidiaries "Xebec") were granted protection
pursuant to an initial order issued under the Companies' Creditors
Arrangement Act by the Superior Court of the Province of Québec
for the district of Montreal ("Court"). The Initial Order
appointed Deloitte Restructuring Inc. as monitor ("Monitor").
On Sept. 29, 2022, Xebec also received Court approval of a sale and
investment solicitation process ("SISP") to be conducted by Xebec,
with the assistance of National Bank Financial Inc. ("NBF"), acting
as financial advisor, under the oversight of the Monitor. All
qualified interested parties will be provided with an opportunity
to participate in the SISP. The SISP is intended to solicit
interest in, and opportunities for, a sale of, or investment in,
all or part of the assets and business segments of Xebec, with the
goal of maximizing value for Xebec and its stakeholders.
The SISP will be conducted as a two-phased process with the Phase 1
Non-Binding LOI Submission Deadline set for 5:00 p.m. (prevailing
Eastern Time) on Nov. 11, 2022. Those who are interested in
participating in this SISP can contact NBF to receive additional
information at: XebecSISP@bnc.ca.
Pursuant to the initial order, the Court authorized the monitor,
with the assistance of the Debtors, to conduct a claims process
with respect to claims against the Debtors and their present and
former directors and offices. The claims procedures order governs
the filing and determination of all claims against the Debtors or
the Directors and officers. On June 6, 2023, the U.S. Court
entered an order recognizing, enforcing, and approving the claims
procedure order.
Pursuant to the claims procedure order, any person wishing to
assert a claim against any of the Debtors or against the directors
and officers must do so through the claims process by filing a
proof of claim with the monitor on or before the claims bar date on
July 24, 2023, at 5:00 p.m. (Montreal Time).
Copies of the order approving the SISP and the SISP procedures and
other relevant information pertaining to the CCAA proceedings may
be obtained from the Monitor’s website, at
https://www.insolvencies.deloitte.ca/Xebec.
The contact information of the Monitor for these CCAA proceedings
is:
Deloitte Restructuring Inc.
Court-Appointed Monitor of Xebec Adsorption Inc. et al.
Tel: 514-393-6722
Toll Free number: 1-888-393-6722
Email: xebec_ccaa@deloitte.ca
Jean-François Nadon
Tel: 514-390-0959
Email: jnadon@deloitte.ca
Julie Mortreux
Tel: 514-393-5400
Email: jmortreux@deloitte.ca
Frederic Turbide
Tel: 514-393-5258
Email: fturbide@deloitte.ca
Attorneys for Debtors:
Osler, Hoskin & Harcourt LLP
2100 - 1000 De La Gauchetiere Street West
Montreal, QC H3B 4W5
Sandra Abitan
Tel: 514-904-5648
Email: sabitan@osler.com
Julien Morissette
Tel: 514-904-5818
Email: jmorissette@osler.com
Ilia Kravtsov
Tel: 514-904-5385
Email: ikravtsov@osler.com
Sophie Courville-Le Bouyonnec
Tel: 514-909-6344
Email: scourville@osler.com
Kathryn Esaw
Tel: 416-862-4905
Email: kesaw@osler.com
Attorneys for Monitor:
McCarthy Tetrault LLP
2500 - 1000 De La Gauchetiere Street West
Montréal, QC, H3B 0A2
Email: notification@mccarthy.ca
Jocelyn T. Perreault
Tel: 514-397-7092
Email: jperreault@mccarthy.ca
Gabriel Faure
Tel: 514-397-4182
Email: gfaure@mccarthy.ca
Marc-Etienne Boucher
Tel: 514-397-5463
Email: meboucher@mccarthy.ca
Attorneys for National Bank of Canada:
Borden Ladner Gervais LLP
900 - 1000 De La Gauchetière St. West
Montreal QC H3B 5H4
Isabelle Desharnais
Tel: 514-954-3134
Email: idesharnais@blg.com
Kevin Mailloux
Tel: 514-879-1212
Email: kmailloux@blg.com
Xebec Adsorption Inc. is a global provider of clean energy
solutions for renewable and low-carbon gases used in energy,
mobility and industrial applications. The company specializes in
deploying a portfolio of proprietary technologies for the
distributed production of hydrogen, renewable natural gas, oxygen
and nitrogen. By focusing on environmentally responsible gas
generation, Xebec has helped thousands of customers around the
world reduce their carbon footprints and operating costs.
Headquartered in Québec, Canada, Xebec has a worldwide presence
with nine manufacturing facilities, seventeen Cleantech Service
Centers and four sales offices spanning over four continents.
YAK TIMBER: 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 Yak Timber, Inc.
About Yak Timber
Yak Timber Inc., a timber company in Yakutat, Alaska, sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.
Alaska Case No. 23-00080) on May 11, 2023. In the petition signed
by its chief executive officer, Marvin Adams, the Debtor disclosed
up to $50 million in both assets and liabilities.
Judge Gary Spraker oversees the case.
Terry P. Draeger, Esq., at Beaty & Draeger, Ltd., is the Debtor's
legal counsel.
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
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then-ending.
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*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
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Rousel Elaine Tumanda, Joel Anthony G. Lopez, Psyche A. Castillon,
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Peter A. Chapman, Editors.
Copyright 2023. All rights reserved. ISSN: 1520-9474.
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*** End of Transmission ***