/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/230626.mbx T R O U B L E D C O M P A N Y R E P O R T E R Monday, June 26, 2023, Vol. 27, No. 176 Headlines 2836 WEST: Unsecured Creditors Unimpaired in Modified Plan 40 & HOLDING: Wins Interim Cash Collateral Access 5 STAR POOL PLASTER: Court OKs Cash Collateral Access Thru Aug 9 555 ARGENTINOS: Seeks to Hire Eric A. Liepins as Legal Counsel 93 THREE MILE: Seeks to Hire Pryor & Mandelup as Legal Counsel 9300 WILSHIRE: Seeks to Hire Newmeyer & Dillion as Special Counsel ACPRODUCTS INC: S&P Downgrades ICR to 'CCC+', Outlook Negative AEARO TECHNOLOGIES: Approved to Appeal Ch.11 Dismissal to 7th Circ. AJM MANAGEMENT: Taps Law Offices of Avrum J. Rosen as Counsel AMC ENTERTAINMENT: MetWest FRI Marks $519,000 Loan at 27% Off AP ORANGEVALE: Seeks to Hire Cross & Simon as Bankruptcy Counsel ARTESIA SPRINGS: Files Emergency Bid to Use Cash Collateral ASP BLADE: MetWest FRI Marks $1.7M Loan at 16% Off AVENIR MEMORY: Seeks to Hire Jennifer Stein as Real Estate Broker AVISON YOUNG: MetWest FRI Marks $1.4M Loan at 25% Off BANYAN CAY RESORT: Judge Okays $102-Mil. Sale of Hotel BED BATH & BEYOND: Hearing Tuesday on Sale to Overstock.com BENEFYTT INC: $35MM DIP Loan from Wilmington OK'd BETTER TRANSPORT: Court OKs Cash Collateral Access Thru July 18 BIGHORN RESTAURANTS: Wins Cash Collateral Access on Final Basis BITTREX INC: Enables Customer Withdrawals During Bankruptcy Process BLOCKFI INC: Says Conn. Regulator Squeezing Chapter 11 Estate BRBRSHY INVESTMENTS: Taps Jones & Walden as Bankruptcy Counsel BUCKHEAD PROPERTY: Commences Subchapter V Bankruptcy Proceeding BW HOLDING: S&P Downgrades ICR to 'CCC+', Outlook Stable CANO HEALTH: MetWest FRI Marks $1.9M Loan at 25% Off CELSIUS NETWORK: Updates Bankruptcy Plan After Fahrenheit Deal CENPORTS COMMERCE: Court OKs Cash Collateral Access Thru Oct 30 CENTER FOR ALTERNATIVE: Mark Dennis Named Subchapter V Trustee CENTURYLINK INC: MetWest FRI Marks $533,647 Loan at 34% Off CHALLENGER BRASS: Case Summary & 20 Largest Unsecured Creditors CHESAPEAKE ENERGY: Egan-Jones Retains BB+ Senior Unsecured Ratings CHICK LUMBER: Court OKs Cash Collateral Access Thru Sept 30 CHRISTMAS TREE: Committee Taps Porzio, Bromberg & Newman as Counsel CHRISTMAS TREE: Committee Taps Rock Creek as Financial Advisor CHRISTMAS TREE: Committee Taps Womble Bond Dickinson as Counsel CITY BREWING: MetWest FRI Marks $986,000 Loan at 58% Off CIVITAS RESOURCES: Fitch Puts 'BB-' LongTerm IDR on Positive Watch CLEARWATER CONTRACTING: Case Summary & 20 Top Unsecured Creditors COBRA HOLDINGS: S&P Cuts Sec. First-Lien Credit Facilities to 'B-' CONSOLIDATED COMMS: MetWest FRI Marks $1.2M Loan at 20% Off CONSUMER ACTION: Case Summary & 10 Unsecured Creditors CONTOUR PROPCO: Seeks to Hire Sternshein as Regulatory Counsel CONTOUR PROPCO: Taps Nicholas Rubin of Force 10 Partners as CRO CORE SCIENTIFIC: Unsecureds Will Get 100% of Claims in Plan COVETRUS INC: S&P Affirms 'B-' ICR, Outlook Stable CSC 1 LLC: Court OKs Interim Cash Collateral Access CSR WORLDWIDE: Seeks to Hire Brown Law Firm as Bankruptcy Counsel CSR-OK REAL ESTATE: Hires Brown Law Firm as Bankruptcy Counsel CYXTERA DC: MetWest FRI Marks $497,000 Loan at 18% Off DAWN ACQUISITION: MetWest FRI Marks $256,022 Loan at 41% Off DEALER PRODUCTS: Court Okays Appointment of Chapter 11 Trustee DESTINED PROPERTIES: Seeks to Tap D&B as Real Estate Listing Agent DGS REALTY: Court OKs Cash Collateral Access Thru Aug 31 DHUD INVESTMENTS: Gregory Jones Named Subchapter V Trustee DIAMOND SPORTS: 94% Markdown for MetWest FRI's $166,900 Loan DMCC 450: Lender Seeks to Prohibit Cash Collateral Access E QUALCOM: Gets OK to Tap Van Horn Law Group as Bankruptcy Counsel E-B DISPLAY: Committee Hires Bernstein-Burkley as Legal Counsel E.L. SERVICES: Wins Interim Cash Collateral Access Thru Sept 29 EAGLE LEDGE: Gets OK to Hire Keller Williams as Real Estate Broker EARTHSTONE ENERGY: Fitch Alters Outlook on 'B+' IDR to Positive EASTERN NIAGARA: No Decline in Patient Care, 14th PCO Report Says EDGEWATER CONSTRUCTION: Income & Vazquez Contribution to Fund Plan FREE SPEECH: Sandy Hook Families Agree to Plan Talks With Jones FTX GROUP: Sam Bankman-Fried to Face Two U.S. Trials GIRARDI & KEESE: Tom Opposes Prosecutors Seeing Unredacted Report GLOBAL TEE: Gets OK to Hire ZZZ Business Services as Accountant GOLDEN DEVELOPING: Case Summary & Four Unsecured Creditors GRAPE AND VINE: Gary Murphey Named Subchapter V Trustee GRAPE AND VINE: Seeks Interim Cash Collateral Access GUARDIAN FUND: U.S. Trustee Seeks Appointment of Bankruptcy Trustee GUR-MEAT INC: Case Summary & 20 Largest Unsecured Creditors HELLO LIVINGSTON: Seeks to Hire North Point as Real Estate Broker HELLO LIVINGSTON: Seeks to Tap Davidoff Hutcher & Citron as Counsel HUNT COS: S&P Alters Outlook to Positive, Affirms 'BB-' ICR IEH AUTO PARTS: Heading Towards Liquidation After Plan Confirmed IMMANUEL SOBRIETY: PCO Submits First Report INN S.F. ENTERPRISE: Unsec. Creditors Will Get Up to 5% in Plan JDI DATA: Trustee Taps Vaupen Financial as Investment Banker JIM'S ALL SEASONS: Court OKs Interim Cash Collateral Access JOHNSON'S ALL-SCAPES: Hires RLC Lawyers as Bankruptcy Counsel LG TRUCKING: Wins Interim Cash Collateral Access LGID NY: Seeks to Hire Charles Silver as Real Estate Counsel LIFESIZE INC: Seeks to Tap Pachulski Stang Ziehl & Jones as Counsel MADERA COMMUNITY: Wins Cash Collateral Access Thru July 14 MALLINCKRODT PLC: Gets Delay of $200M Opioid Payment MASTERS III: Files Emergency Bid to Use Cash Collateral MESA TERRACE: August 2 Plan Confirmation Hearing Set MICKEYS SPORTS: Files Emergency Bid to Use Cash Collateral MONITRONICS INT'L: Hearing on Plan & Disclosures June 26 MOUNTAIN EXPRESS: Taps Axinn Veltrop & Harkrider as Special Counsel MOXI ENTERPRISES: Ruediger Mueller Named Subchapter V Trustee NAKED JUICE: MetWest FRI Marks $2.1M Loan at 23% Off NARKE ASHSTREET: Files for Chapter 11; Owners Seek Dismissal NATIONAL CINEMEDIA: Deal With Cineworld Gets Court Approval NEP NCP HOLDCO: MetWest FRI Marks $440,000 Loan at 19% Off NEUBERT CONSTRUCTION: Seeks to Hire Davis Group as Accountant NEW INSIGHT: MetWest FRI Marks $473,750 Loan at 23% Off NEW JERSEY VISION: Court OKs Interim Cash Collateral Access NEW TROJAN: MetWest FRI Marks $1.4M Loan at 31% Off NEXTSPORT INC: Has Cash Collateral Access Thru Sept 30 NOB HILL INN: Taps Thomas O'Brien of Vacation Resorts as Manager ORCHARD TRAILS: Case Summary & Two Unsecured Creditors PANEVAS LLC: Seeks to Hire Clearbay Realty as Real Estate Broker PEACE EQUIPMENT: Seeks to Hire Baker & Associates as Counsel PERFECTLY PRISCILLA: Jenny Martin Walker Named Subchapter V Trustee PERSHARD CLIPPER: Aleida Molina Named Subchapter V Trustee PERSHARD INVESTMENTS: Aleida Molina Named Subchapter V Trustee PILL CLUB: Taps Quarles & Brady as Ordinary Course Professional PLUMBING TECHNOLOGIES: Court OKs Interim Cash Collateral Access PLUMBING TECHNOLOGIES: Seeks to Tap Genova Malin & Trier as Counsel POLAR US BORROWER: MetWest FRI Marks $1.5M Loan at 16% Off POLARITYTE INC: Gets OK to Hire Kurtzman Carson as Equity Agent POLARITYTE INC: Gets OK to Hire Ordinary Course Professionals POLARITYTE INC: Seeks to Hire Parsons Behle as Bankruptcy Counsel POLARITYTE INC: Seeks to Hire Rocky Mountain as Financial Advisor PRETIUM PKG: MetWest FRI Marks $1.7M Loan at 20% Off PRIMAL CRUSHING: Seeks to Hire Rochelle McCullough as Counsel PRIMAL MATERIALS: Seeks to Hire Rochelle McCullough LLP as Counsel PRIME PLUMBING: Gary Murphey Named Subchapter V Trustee PRIME PLUMBING: Wins Cash Collateral Access Thru July 20 PROPPANT TECH: Seeks to Hire Glast Phillips & Murray as Counsel PROPPANT TECH: Seeks to Hire Lane Gorman Trubitt, Appoint CRO PUERTO RICO: PREPA Sued by Workers Union to Stop Genera PR Contract PURDUE PHARMA: Wants Chapter 11 Stay Extended to Implement Plan RADIATE HOLDCO: MetWest FRI Marks $249,300 Loan at 18% Off RADNET INC: S&P Upgrades ICR to 'B+' on Debt Prepayment RAW INDULGENCE: Cash Collateral Access Thru July 15 OK'd RAY'S AUTO: Seeks to Hire Kevin K. Kercher as Bankruptcy Counsel RIALTO BIOENERGY: Taps Levene Neale Bender Yoo & Golubchik as Atty. ROCKPORT CO: Files for Chapter 11 for 2nd Time in 5 Years ROLPA TRUCKING: Starts Subchapter V Case SANO ARTISAN: Seeks to Hire Berger Fischoff as Bankruptcy Counsel SCANDINAVIAN AIRLINES: Extends $900 Million Equity Raise Deadline SCCW INDUSTRIAL: Seeks to Hire Maida Clark Law Firm as Counsel SCH SHEET METAL: Voluntary Chapter 11 Case Summary SCHAFFNER PUBLICATIONS: Unsecureds to Get 4.9 Cents on Dollar SCHARN INDUSTRIES: Court OKs Cash Collateral Access Thru July 27 SECURE ENERGY: Fitch Hikes LongTerm IDR to BB-, Outlook Stable SHERMAN/GRAYSON: Case Summary & 20 Largest Unsecured Creditors SILICON VALLEY: SEC Officials, DOJ Probe Goldman's Role in Bank SKILLSOFT FINANCE: MetWest FRI Marks $673,102 Loan at 15% Off SKYREACH CONSTRUCTION: Jodi Dubose Named Subchapter V Trustee SNC VENTURES: Amends Subchapter V Plan After Denial SOURCEWATER INC: Seeks to Hire Medler Ferro as IP Counsel SPIN HOLDCO: MetWest FRI Marks $1.9M Loan at 16% Off STEWART BOUNCE: Seeks Cash Collateral Access SUPPLY CHAIN: Case Summary & 20 Largest Unsecured Creditors SWS SERVICES: PCO Submits First Report TAHOE LAKE: Court OKs Cash Collateral Access Thru July 18 THREE ARROWS: Reps Want Co-Founder Held in Contempt TRANSCENDIA INC: MetWest FRI Marks $2.3M Loan at 24% Off TRANSIT PHYSICAL: Unsecureds Will Get 50% of Claims in 60 Months TYSON FAMILY: Case Summary & 10 Unsecured Creditors UNION CIGAR: Seeks to Hire Wiedeman & Douty PC as Accountant VENATOR MATERIALS: Huntsman Corp. Says Plan Not Feasible VERICAST CORP: Declines RR Donnelly's $3 Billion Offer VIASAT INC: Fitch Corrects June 14 Ratings Release VIRGIN ORBIT: Amends Unsecureds & Prepetition Secured Notes Claims VIRGIN ORBIT: Firefly Buys Remaining Assets After Auction VOYAGER DIGITAL: Customers Should Have Their Crypto by July 5 WE KICK BRASS: Seeks Cash Collateral Access WESTERN GLOBAL: Reportedly Considering Bankruptcy Filing WEXFORD LABS: Seeks Cash Collateral Access WILLOWS AT THE LAKES: Seeks to Hire Payne Law Firm as Counsel WOLF EMPIRE ESTATE: Starts Subchapter V Bankruptcy Process WWMAJ SYSTEMS: Court OKs Continued Cash Collateral Access YAK TIMBER: Wins Cash Collateral Access Thru July 12 ZAYO GROUP: MetWest FRI Marks $1.6M Loan at 18% Off ZAYO GROUP: MetWest FRI Marks $495,000 Loan at 20% Off ZIP MAILING: Seeks to Hire McNamee Hosea as Bankruptcy Counsel [^] BOND PRICING: For the Week from June 19 to 23, 2023 ********* 2836 WEST: Unsecured Creditors Unimpaired in Modified Plan ---------------------------------------------------------- 2836 West Realty LLC submitted a Second Modified Disclosure Statement for Second Modified Chapter 11 Plan dated June 20, 2023. The Plan described provides the Allowed Claims of creditors to be satisfied from the proceeds received from the sale of the Debtor's Property. The sale of the Property was approved by order of the Bankruptcy Court dated September 26, 2022. The purchaser of the Property was Isaak Badalov or an entity to be created by him, and the purchase price was $623,000.00 plus a buyer's premium of $37,380.00. The sale closed on November 3, 2022. Class 3 consists of General Unsecured Claims. Class 3 Claims are unimpaired and, as such, holders of such claims are conclusively presumed to have accepted the Plan pursuant to section 1126(f) of the Bankruptcy Code. Therefore, holders of General Unsecured Claims are not entitled to vote to accept or reject the Plan. Except to the extent that a holder of a General Unsecured Claim against the Debtor may agree to less favorable treatment of such Claim, each holder of an Allowed General Unsecured Claim shall receive full payment in Cash on the later of the Effective Date and the date on which such General Unsecured Claim becomes an Allowed Claim, or as soon as reasonably practical. The allowed unsecured claims total $225,000. The holders of Allowed Existing Equity Interests shall retain their interests and will share in any funds left over after paying all Classes and fees. Class 4 Interests are Unimpaired and deemed to accept the Plan. The Property was sold by order of the Bankruptcy Court dated September 26, 2022. The purchaser of the Property was Isaak Badalov or an entity to be created by him, and the purchase price was $623,000.00 plus a buyer’s premium of $37,380.00. The sale closed on November 3, 2022. The Debtor’s counsel is holding the sale proceeds (net of payments made at closing and professional fees paid per court order) in its escrow account. A full-text copy of the Second Modified Disclosure Statement dated June 20, 2023 is available at https://urlcurt.com/u?l=28cEHi from PacerMonitor.com at no charge. Counsel to the Debtor: Eric H. Horn, Esq. Heike M. Vogel, Esq. A.Y. STRAUSS LLC 101 Eisenhower Parkway, STE 412 New York, NY 10018 Tel: (973) 287-5006 Fax: (646)374-3020 About 2836 West Realty 2836 West Realty LLC filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No. 20-42297) on June 10, 2020, listing as much as $1 million in both assets and liabilities. The Hon. Nancy Hershey Lord is the case judge. Eric H. Horn, Esq., at A.Y. Strauss LLC, serves as the Debtor's legal counsel. 40 & HOLDING: Wins Interim Cash Collateral Access ------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of North Carolina, Raleigh Division, authorized 40 & Holding LLC, d/b/a/ The London Bridge Pub, to use cash collateral on an interim basis in accordance with the budget, with a 10% variance. The Debtor needs to use the funds in the bank account to continue normal operations and maintain its going concern value. A review of the North Carolina Secretary of State's UCC filings shows financing statements which might perfect a lien on cash collateral: a. File # 20180090175E recorded August 30, 2018, in favor of CresCom Bank, ATTN: Loan Processing, 220 Creekside Drive, Washington, NC 27889; b. File # 20200012154J recorded February 4, 2020, in favor of U.S. Foods, Inc., 1500 NC Highway 39, Zebulon, NC 27597; c. File # 20200050796B recorded May 6, 2020, in favor of U.S. Small Business Administration, 2 North Street, Suite 320, Birmingham, AL 35203; d. File # 20220140275G recorded October 15, 2022, in favor of Financial Agent Services, P.O. Box 2576, Springfield, IL 62708; and e. File # 20230068402J recorded against 40 & HOLDING LLC on May 30, 2023, in favor of CT Corporation System, as representative, 330 N Brand Blvd, Suite 700, ATTN: SPRS, Glendale, CA 91203. As adequate protection, and to the extent that cash collateral is used, the Potential Secured Creditors will receive a post-petition lien on the Debtor's cash and inventory to the extent of the use and to the extent that the pre-petition lien in the same type of collateral was valid, perfected, enforceable, and non-avoidable as of the petition date. The Debtor's use of cash collateral will expire or terminate on the earlier of: (i) the Debtor ceasing operations of its business; or (ii) the non-compliance or default of the Debtor with any terms and provisions of the Order. The next hearing on the matter is set for July 11 at 11 a.m. A copy of the court's order and the Debtor's budget is available at https://urlcurt.com/u?l=pbKBbN from PacerMonitor.com. The Debtor projects $75,000 in total income for 30 days. About 40 & Holding LLC 40 & Holding LLC is a pub serving food, beverages, and alcoholic beverages, located in downtown Raleigh. London Bridge also hosts special events in the pub, such as open mic nights, DJ performances, karaoke, and broadcasts soccer games for its clientele. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.C. Case No. 23-01637) on June 13, 2023. In the petition signed by Michael A. Ruiz, owner/member, the Debtor disclosed up to $50,000 in assets and up to $1 million in liabilities. Judge Joseph N. Callaway oversees the case. Kathleen O'Malley, Esq., at Stevens Martin Vaughn & Tadych, PLLC, represents the Debtor as legal counsel. 5 STAR POOL PLASTER: Court OKs Cash Collateral Access Thru Aug 9 ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of California, Oakland Division, authorized 5 Star Pool Plaster, Inc., a California corporation, to use cash collateral on an interim basis, in accordance with the budget, with a 10% variance, through August 9, 2023. The Debtor has two creditors with security interests in the cash collateral: -- The Small Business Administration, from a COVID-19 Disaster Relief Loan; and -- The Internal Revenue Service, from a statutory lien from alleged unpaid payroll taxes. The Debtor is directed to pay to the SBA monthly adequate protection payments totaling $731 each month beginning June 2023, and due on the 15th of each month, thereafter. The SBA is also granted a replacement lien as further adequate protection up to the present value of its collateral, to be determined, to the same extent, priority, and validity as existed on the petition date. A copy of the order is available at https://urlcurt.com/u?l=t7KxdO from PacerMonitor.com. About 5 Star Pool Plaster 5 Star Pool Plaster, Inc. filed a Chapter 11 bankruptcy petition (Bankr. N.D. Calif. Case No. 23-40388) on April 5, 2023, with as much as $1 million in both assets and liabilities. Judge William J. Lafferty oversees the case. The Debtor is represented by the Law Offices of Ryan C. Wood, Inc. 555 ARGENTINOS: Seeks to Hire Eric A. Liepins as Legal Counsel -------------------------------------------------------------- 555 Argentinos, LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of Texas to hire Eric A. Liepins, PC as its bankruptcy counsel. The Debtor requires legal assistance to liquidate its assets, reorganize the claims of the estate, and determine the validity of claims asserted in the estate. The firm will be paid at these rates: Eric A. Liepins $275 per hour Paralegals and Legal Assistants $30 to $50 per hour In addition, the firm will seek reimbursement for expenses incurred. The firm received a retainer of $5,000, plus filing fee. Mr. Liepins, the sole shareholder of the firm, disclosed in a court filing that his firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Eric A. Liepins, Esq. Eric A. Liepins, PC 12770 Coit Road, Suite 850 Dallas, TX 75251 Telephone: (972) 991-5591 Facsimile: (972) 991-5788 Email: eric@ealpc.com About 555 Argentinos 555 Argentinos, LLC filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Tex. Case No. 23-41660) on June 6, 2023. At the time of filing, the Debtor estimated $500,001 to $1 million in assets and $100,001 to $500,000 in liabilities. Eric A. Liepins, Esq. at Eric A. Liepins, P.C. represents the Debtor as counsel. 93 THREE MILE: Seeks to Hire Pryor & Mandelup as Legal Counsel -------------------------------------------------------------- 93 Three Mile Harbor LLC seeks approval from the U.S. Bankruptcy Court for the Eastern District of New York to hire Pryor & Mandelup, L.L.P. as its counsel. The firm's services include: a. legal advice with respect to the powers and duties of the Debtor in the continued management of its business and property; b. representing the Debtor before the bankruptcy court and at all hearings; c. assisting the Debtor in the negotiation with its creditors and the preparation of a Chapter 11 plan of reorganization; d. preparing legal papers; and e. other necessary legal services. The firm will be paid at these rates: Partner $575 per hour Counsel $525 per hour Associates $450 per hour Paralegals $175 per hour In addition, the firm will receive reimbursement for out-of-pocket expenses incurred. The retainer fee is $25,000. Mark Cohen, Esq., Esq., a partner at Pryor & Mandelup, disclosed in a court filing that the firm is a "disinterested person" pursuant to Section 101(14) of the Bankruptcy Code. The firm can be reached at: Mark E. Cohen, Esq., Esq. Pryor & Mandelup, LLP 675 Old Country Road Westbury, NY 11590 Tel: (516) 997-0999 Email: mec@pryormandelup.com About 93 Three Mile 93 Three Mile Harbor, LLC is engaged in activities related to real estate. The company is based in Remsenburg, N.Y. 93 Three Mile Harbor filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. E.D.N.Y. Case No. 23-71954) on May 31, 2023, with $500,000 to $1 million in assets and $1 million to $10 million in liabilities. Judge Robert E. Grossman oversees the case. Mark E. Cohen, Esq., at Pryor & Mandelup, LLP is the Debtor's legal counsel. 9300 WILSHIRE: Seeks to Hire Newmeyer & Dillion as Special Counsel ------------------------------------------------------------------ 9300 Wilshire LLC seeks approval from the U.S. Bankruptcy Court for the Central District of California to hire Newmeyer & Dillion to act as the its special land use, and zoning counsel. Newmeyer will continue to represent the Debtor with regard to certain pending issues with the City of Redondo Beach including the submission and approval of affordable housing on the property at 1100 N. Harbor Blvd., Redondo Beach, CA. The firm will be paid at these hourly rates: Attorneys $645 to $335 Paralegals $355 to $335 Michael Shonafelt. Esq., a partner at Newmeyer & Dillion, assured the court that his firm is a "disinterested person" as defined in 11 U.S.C. 101(14). The firm can be reached through: Michael W. Shonafelt, Esq. Newmeyer & Dillion 895 Dove Street, 2nd Floor Newport Beach, CA 92660 Phone: 949-271-7196 Email: michael.shonafelt@ndlf.com About 9300 Wilshire 9300 Wilshire, LLC is a Beverly Hills-based company engaged in activities related to real estate. 9300 Wilshire filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Calif. Case No. 23-10918) on Feb. 21, 2023, with $100 million to $500 million in assets and $50 million to $100 million in liabilities. Leonid Pustilnikov, 9300 Wilshire's manager, signed the petition. Judge Ernest M. Robles presides over the case. Victor Sahn, Esq., and Steve Burnell, Esq., at Greenspoon Marder, LLP are the Debtor's bankruptcy attorneys. ACPRODUCTS INC: S&P Downgrades ICR to 'CCC+', Outlook Negative -------------------------------------------------------------- S&P Global Ratings lowered the issuer credit rating on Ann Arbor, Mich.-based cabinet maker ACProducts Inc. to 'CCC+' from 'B-'. At the same time, S&P lowered its issue-level ratings on Victors Intermediate Holding II Corporation's term loan due 2028 to 'CCC+' from 'B-', and its senior unsecured notes due 2029 to 'CCC-' from 'CCC'. The negative outlook reflects S&P views that weaker cabinet demand trends and cost headwinds will pressure the company's adjusted leverage toward the 10x area and EBITDA interest coverage closer to 1x over the next 12 months, resulting in an unsustainable capital structure absent a significant improvement in profitability. S&P said, "We believe the challenging macroenvironment is exacerbating lower demand, which will negatively affect the company's revenue growth in fiscal (FY) year 2023. The company's revenue grew nearly 15% in FY 2022 as robust demand and the ability pass through higher prices partially offset structural changes in the company's channel mix. We believe the shift away from the single-family builder direct channel will adversely affect the company's volume and revenue in FY 2023. We also project lower demand as S&P Global forecasts residential structure construction growth to decrease 17% in FY 2023. We expect the company may benefit marginally from more favorable expected trends in the repair and remodel segment and in the multi-family builder segment. However, we maintain the view that overall revenue will face pressure from both the company's change in channel mix and broader macroeconomic trends in the housing sector. Therefore, we forecast the company's revenue to decline around 5% in FY 2023 followed by positive, low- to mid- single-digit growth in FY 2024 as the macroeconomic environment improves." Leverage will remain near 10x over the next 12 months as inflationary impacts on labor, materials, and freight persist, while free cash flow could turn negative. The company's 9.3% S&P Global Ratings'-adjusted FY 2022 EBITDA margin was lower than our previous forecast of 10%-11%, as inflation had an adverse impact on costs, partially offset by favorable pricing actions. S&P said, "While we believe costs for labor and some material categories have moderated, we expect input costs in categories like hardwood lumber and freight will persist in FY 2023. The company's FY 2022 S&P Global Ratings'-adjusted EBITDA interest coverage was 1.5x. Given our expectation for continued pressure on EBITDA from labor, freight and some materials, as well as higher interest costs stemming from higher interest rates, we believe the company's EBITDA interest coverage ratio will remain under pressure. Therefore, we forecast EBITDA margin in the 9%-10% range over the next 12 months, resulting in debt to EBITDA near 10x and EBITDA interest coverage closer to 1x in fiscal 2023." S&P said, "The negative outlook reflects our view that lower overall cabinet demand coupled with cost headwinds will pressure the company's adjusted debt leverage near 10x and EBITDA interest coverage closer to 1x over the next 12 months. Given the deterioration in credit metrics from weaker profitability and higher financing cost, we believe the current capital structure may be unsustainable absent a significant recovery in profitability." S&P could lower the rating over the next 12 months if: -- Its operating performance continues to weaken such that EBITDA interest coverage declines to below 1x or S&P no longer view its liquidity as adequate, due to significant negative free cash flow, a further tightening of its covenant headroom, or the violation of covenants limiting access to the revolving credit facility; or -- The company announces a debt exchange or restructuring that S&P deems tantamount to a default. Although unlikely, S&P could raise the rating if demand improves and cost headwinds in materials, freight, and labor decrease so that leverage improves to 8x and EBITDA interest coverage trends toward 2x on a sustained basis. ESG credit indicators: E-2, S-2, G-3 S&P said, "Governance is a moderately negative consideration in our credit rating analysis of ACProducts. Our assessment of the company's financial risk profile as highly leveraged reflects corporate decision-making that prioritizes the interests of the controlling owners, in line with our view of the majority of rated entities owned by private-equity sponsors. Our assessment also reflects their generally finite holding periods and a focus on maximizing shareholder returns. Furthermore, we view environmental factors to have an overall neutral influence on our credit rating analysis, since as a maker of kitchen and bath cabinetry the company's operations are less energy intensive than those of heavy materials producers." AEARO TECHNOLOGIES: Approved to Appeal Ch.11 Dismissal to 7th Circ. ------------------------------------------------------------------- Rick Archer of Law360 reports that an Indiana bankruptcy judge Wednesday, June 14, 2023, allowed a 3M subsidiary to take its request to overturn his dismissal of its Chapter 11 case straight to the Seventh Circuit, saying a ruling by the circuit will provide clarity on what a "good faith" bankruptcy filing is. 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. AJM MANAGEMENT: Taps Law Offices of Avrum J. Rosen as Counsel ------------------------------------------------------------- AJM Management, LLC seeks approval from the U.S. Bankruptcy Court for the Eastern District of New York to hire The Law Offices of Avrum J. Rosen, PLLC. The Debtor requires legal counsel to: (a) analysis of the financial situation, and rendering advice and assistance to the Debtor in determining whether to file a petition under the Bankruptcy Code; (b) preparation and filing of the petition, schedules, statement of financial affairs and other documents required by the Court; (c) representation of the Debtor at the meeting of creditors; (d) preparation of motions, documents and applications in connection with the case; and (e) rendering legal advice to the Debtor in connection with all matters pending before the Court. The firm will be paid at these rates: Partners $670 per hour Associates $395 to $570 per hour Paralegals $150 to $200 per hour In addition, the firm will receive reimbursement for out-of-pocket expenses incurred. As disclosed in court filings, The Law Offices of Avrum J. Rosen is a "disinterested person" pursuant to Section 101(14) of the Bankruptcy Code. The firm can be reached through: Nico G. Pizzo, Esq. Avrum J. Rosen, Esq. The Law Offices of Avrum J. Rosen, PLLC 38 New Street Huntington, NY 11743 Telephone: (631) 423-8527 Email: npizzo@ajrlawny.com arosen@ajrlawny.com About AJM Management AJM Management is the fee simple owner of real property located at 405 Rockaway Parkway, Brooklyn, New York valued at $3.9 million. AJM Management, LLC filed it voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No. 23-41664) on May 12, 2023. The petition was signed by Ray Jones as managing director. At the time of filing, the Debtor estimated $4,117,194 in assets and $2,262,346 in liabilities. Judge Nancy Hershey Lord oversees the case. Avrum J. Rosen, Esq. at the LAW OFFICES OF AVRUM J. ROSEN, PLLC represents the Debtor as counsel. AMC ENTERTAINMENT: MetWest FRI Marks $519,000 Loan at 27% Off ------------------------------------------------------------- Metropolitan West Fund's Floating Rate Income Fund has marked its $519,588 loan extended to AMC Entertainment Holdings, Inc.to market at $380,273 or 73% of the outstanding amount, as of March 31, 2023, according to a disclosure contained in the MetWest Fund's Form N-CSR for the Fiscal year ended March 31, 2023, filed with the Securities and Exchange Commission. Floating Rate Income Fund is a participant in a First Lien Term Loan B1 (LIBOR plus 3%) to AMC Entertainment Holdings, Inc. The loan accrues interest at a rate of 7.68% per annum. The loan matures on April 22, 2026. The Metropolitan West Funds is an open-end management investment company organized as a Delaware statutory trust on December 9, 1996 and registered under the Investment Company Act of 1940, as amended. Metropolitan West Asset Management, LLC, a federally registered investment adviser, provides the Funds with investment management services. The Trust currently consists of 14 separate portfolios. AMC Entertainment Holdings, Inc. operates as a holding company. The Company, through its subsidiaries, provides theatrical exhibition, movie screening, food distribution, online ticket booking, and other related services. AP ORANGEVALE: Seeks to Hire Cross & Simon as Bankruptcy Counsel ---------------------------------------------------------------- AP Orangevale, LLC seeks approval from the U.S. Bankruptcy Court for the District of Delaware to employ Cross & Simon, LLC as its counsel. The firm will render these services: (a) perform all necessary services as the Debtor's counsel in connection with this Chapter 11 case; (b) take all necessary actions to protect and preserve the Debtor's rights during the pendency of this Chapter 11 case; (c) represent the Debtor at hearings, meetings, and conferences on matters pertaining to its affairs; and (d) perform all other necessary legal services. The hourly rates of the firm's counsel and staff are as follows: Christopher P. Simon $695 Kevin S. Mann $595 Stephanie MacDonald, Paralegal $210 In addition, the firm will be reimbursed for expenses incurred. On May 26, the firm received a retainer of $10,000 from the Debtor. Kevin Mann, Esq., an attorney at Cross & Simon, disclosed in a court filing that his firm is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Christopher P. Simon, Esq. Cross & Simon, LLC 1105 N. Market Street, Suite 901 Wilmington, DE 19801 Telephone: (302) 777-4200 Email: csimon@crosslaw.com About AP Orangevale AP Orangevale, LLC is a single asset real estate (as defined in 11 U.S.C. Section 101(51B)). The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 23-10687) on May 29, 2023. In the petition signed by Richard Sabella, manager, the Debtor disclosed up to $1 million to $10 million in assets and up to $1 million to $10 million in liabilities. Judge Craig T. Goldblatt oversees the case. Cross & Simon, LLC represents the Debtor as legal counsel. ARTESIA SPRINGS: Files Emergency Bid to Use Cash Collateral ----------------------------------------------------------- Artersia Springs, LLC asks the U.S. Bankruptcy Court for the Western District of Texas, San Antonio Division, for authority to use cash collateral to pay post-petition expenses. Frost Bank, the U.S. Small Business Administration, Fincoast Capital LLC, Firstbank Southwest and Advantage Platform Services Inc. may assert a security interest in the Debtor's cash and receivables. As adequate protection, the Debtor requests that the Alleged Secured Creditors be granted a replacement lien (securing payment of an amount equal to the amount of cash collateral, if any, used by the Debtor) on all proceeds of receivables (after paying its postpetition expenses) to the extent acquired after the Petition Date and if it is ultimately determined that the Alleged Secured Creditors have a valid security interest in the pre-petition receivables and proceeds. The replacement liens will be adequate protection for the use of any cash collateral. A copy of the Debtor's motion and budget is available at https://urlcurt.com/u?l=81H4To from PacerMonitor.com. The Debtor projects $858,165 in total assets and $1.6 million in total liabilities. About Artersia Springs, LLC Artersia Springs, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No. 23-50779) on June 20, 2023. In the petition signed by Rodolfo Ramon, chief executive officer, the Debtor disclosed up to $1 million in assets and up to $10 million in liabilities. William B. Kingman, Esq., at the Law Offices of William B. Kingman, represents the Debtor as legal counsel. ASP BLADE: MetWest FRI Marks $1.7M Loan at 16% Off -------------------------------------------------- Metropolitan West Fund's Floating Rate Income Fund has marked its $1,734,106 loan extended to ASP Blade Holdings, Inc to market at $1,453,762 or 84% of the outstanding amount, as of March 31, 2023, according to a disclosure contained in MetWest Fund's Form N-CSR for the Fiscal year ended March 31, 2023, filed with the Securities and Exchange Commission. Floating Rate Income Fund is a participant in a First Lien Term Loan B (LIBOR plus 4%) to ASP Blade Holdings, Inc. The loan accrues interest at a rate of 8.94% per annum. The loan matures on October 16, 2028. The Metropolitan West Funds is an open-end management investment company organized as a Delaware statutory trust on December 9, 1996 and registered under the Investment Company Act of 1940, as amended. Metropolitan West Asset Management, LLC, a federally registered investment adviser, provides the Funds with investment management services. The Trust currently consists of 14 separate portfolios. ASP Blade Holdings, Inc. operates as Oregon Tool, Inc. and formerly known as Blount International, Inc. Oregon Tool, Inc., headquartered in Portland, Oregon, is a global manufacturer and distributor of professional-grade, consumable parts and attachments for use in forestry, agriculture, lawn and garden and other cutting applications. Platinum Equity, through its affiliates, is the owner of Oregon Tool. AVENIR MEMORY: Seeks to Hire Jennifer Stein as Real Estate Broker ----------------------------------------------------------------- Avenir Memory Care @ Fayetteville LP seeks approval from the U.S. Bankruptcy Court for the District of Arizona to hire Jennifer Stein Real Estate Inc. as its broker. The broker will market and sell the Debtor's memory care facility known as Avenir Memory Care @ Fayetteville located at 1967 W. Truckers Drive, Fayetteville, Arkansas. Jennifer Stein shall cooperate and co-broker with Walker & Dunlop Investment Sales, LLC. Walker Dunlop will earn a commission of 1 percent of the total purchase price if/when it brings a successful buyer and the facility is sold. Pursuant to Walker Dunlop's arrangement with Jennifer Stein, Jennifer Stein will receive a fee in the amount of 10 percent of the Commission with a cap of $7,500 and a minimum of $2,500. As disclosed in the court filings, Jennifer Stein disinterested as that term is defined in 11 U.S.C. Sec. 101(14). The broker can be reached through: Jennifer Stein Jennifer Stein Real Estate Inc. 1221 Puerta Del Sol Suite 600 San Clemente, CA 92673 Phone: (213) 446-5366 Email: jstein@jdsreservices.com About Avenir Memory Care @ Fayetteville Avenir Memory Care @ Fayetteville operates a nursing care facility. Avenir Memory Care @ Fayetteville LP filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Ariz. Case No. 23-02640) on April 25, 2023. The petition was signed by David L. Craik as president and director of the General and Limited Partners. At the time of filing, the Debtor estimated $10 million to $50 million in both assets and liabilities. Judge Brenda Moody Whinery presides over the case. Philip R. Rudd, Esq. at SACKS TIERNEY P.A. represents the Debtor as counsel. AVISON YOUNG: MetWest FRI Marks $1.4M Loan at 25% Off ----------------------------------------------------- Metropolitan West Fund's Floating Rate Income Fund has marked its $1,476,864 loan extended to Avison Young Canada, Inc to market at $1,104,576 or 75% of the outstanding amount, as of March 31, 2023, according to a disclosure contained in MetWest Fund's Form N-CSR for the Fiscal year ended March 31, 2023, filed with the Securities and Exchange Commission. Floating Rate Income Fund is a participant in a First Lien Term Loan (SOFR plus 5.75%) to Avison Young Canada, Inc. The loan accrues interest at a rate of 10.61% per annum. The loan matures on January 31, 2026. The Metropolitan West Funds is an open-end management investment company organized as a Delaware statutory trust on December 9, 1996 and registered under the Investment Company Act of 1940, as amended. Metropolitan West Asset Management, LLC, a federally registered investment adviser, provides the Funds with investment management services. The Trust currently consists of 14 separate portfolios. Avison Young (Canada) Inc. provides real estate services. The Company offers consulting, advisory, lease administration, investment and asset management, and mortgage services. Avison Young (Canada) serves customers worldwide. BANYAN CAY RESORT: Judge Okays $102-Mil. Sale of Hotel ------------------------------------------------------ David Minsky of Law360 reports that a Florida federal bankruptcy judge approved the $102.1 million sale of the Banyan Cay Resort and Golf Club on Thursday, June 15, 2023, several months after the Hyatt-affiliated hotel filed for Chapter 11 protection. About Banyan Cay Resort & Golf Banyan Cay Resort & Golf, LLC, and affiliates operate resorts and golf clubs. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 23-12386) on March 29, 2023. In the petition signed by Gerard A. McHale, McHale, P.A., proposed chief restructuring officer, the Debtor disclosed up to $500 million in both assets and liabilities. Judge Mindy A. Mora oversees the case. Gerard McHale of McHale, PA serves as CRO and CEO of the Debtors. Joseph A. Pack, Esq., at Pack Law, represents the Debtor as legal counsel. Keen-Summit Capital Partners LLC serves as marketing agent and broker for the Debtors. BED BATH & BEYOND: Hearing Tuesday on Sale to Overstock.com ----------------------------------------------------------- Bed Bath & Beyond Inc. selected Overstock.com, Inc. as successful bidder for most of the Debtors' intellectual property assets, their business internet properties, mobile platform, business data and related assets. Certain trademarks are excluded from the sale. The Debtors selected (i) JOWA Brands LLC as the Backup Bidder solely with respect to certain intellectual property assets associated with the Debtors' Wamsutta brand; and (ii) Ten Twenty Four, Inc. as the Backup Bidder solely with respect to the Beyond.com Asset. Overstock.com is offering a base purchase price of $21.5 million, subject to the terms and conditions of the Overstock asset purchase agreement. The Debtors conducted Auctions with respect to the Wamsutta Assets and Beyond.com Asset on June 21, 2023, at the offices of Kirkland & Ellis, LLP in New York. Following the Auctions, the Court entered an order authorizing the Debtors to designate Overstock.com as the Stalking Horse Bidder; and enter into a Stalking Horse Agreement. The Debtors will seek approval of the Sale Transaction at the Sale Hearing on June 27, 2023, at 2:30 p.m. (prevailing Eastern Time) before the Honorable Judge Papalia in Newark, New Jersey. Overstock.com is represented in the deal by: Scott K. Charles, Esq. Michael S. Benn, Esq. Gordon S. Moodie, Esq. Wachtell, Lipton, Rosen & Katz 51 West 52nd Street New York, NY 10019 E-Mail: SKCharles@wlrk.com MSBenn@wlrk.com GSMoodie@wlrk.com About Bed Bath & Beyond Bed Bath & Beyond Inc., together with its subsidiaries, is an omnichannel retailer selling a wide assortment of merchandise in the Home, Baby, Beauty & Wellness markets and operates under the names Bed Bath & Beyond, buybuy BABY, and Harmon, Harmon Face Values. The Company also operates Decorist, an online interior design platform that provides personalized home design services. At its peak, Bed Bath & Beyond operated the largest home furnishing retailer in the United States with over 970 stores across all 50 states, consistently at the forefront of major home and bath trends. Operating stores spanning the United States, Canada, Mexico, and Puerto Rico, Bed Bath & Beyond offers everything from bed linens to cookware to electric appliances, home organization, baby care, and more. Bed Bath & Beyond closed over 430 locations across the United States and Canada before filing chapter 11 cases, implementing full scale winddowns of their Canadian business and the Harmon branded stores. Left with 360 Bed Bath & Beyond and 120 buybuy BABY stores, Bed Bath & Beyond Inc. and 73 affiliated debtors on April 23, 2023, each filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code (Bankr. D.N.J. Lead Case No. 23-13359) to pursue a wind down of operations. The cases are pending before the Honorable Vincent F. Papalia. Kirkland & Ellis LLP and Cole Schotz P.C. are serving as legal counsel, Lazard Frares & Co. LLC is serving as investment banker, and AlixPartners LLP is serving as financial advisor. Bed Bath & Beyond Inc. has retained Hilco Merchant Resources LLC to assist with inventory sales. Kroll LLC is the claims agent. BENEFYTT INC: $35MM DIP Loan from Wilmington OK'd ------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, authorized Benefytt Technologies, Inc. to use cash collateral and obtain postpetition financing, on a final basis. The Debtors obtained senior secured postpetition financing on a superpriority basis, consisting of: (i) a superpriority delayed draw term loan facility in an aggregate principal amount of up to $35 million, as contemplated by the Restructuring Support Agreement dated as of May 23, 2023; provided that (x) an initial draw in the principal amount of up to $25 million was made available to the Debtors upon entry of the Interim Order, and (y) the remaining undrawn portion of the DIP Facility will be made available to the Debtors upon entry of the Final Order, all on the terms and subject to satisfaction of the conditions set forth in the DIP Documents, the Interim Order, and the DIP Budget; and (ii) a new money letter of credit subfacility with aggregate commitments to issue up to $4 million of new letters of credit of which all will be available immediately upon entry of the Interim Order. Phoenix 2023 Merger Sub LLC is the guarantor and Wilmington Savings Fund Society, FSB is the administrative agent and collateral agent under the Debtor-in-Possession Credit Agreement. The DIP Facility terminates through the earliest to occur of: (a) The date that is six months after the Court's entry of the Interim Order and satisfaction of all of the applicable conditions precedent; (b) The date that is 45 days after the Petition Date if the Final Order has not been entered prior to the expiration of such 45-day period, unless otherwise extended by the Required DIP Lenders; (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 DIP Commitments with respect to the DIP Facility in accordance with the DIP Credit Agreement; and (e) The consummation of a sale of all or substantially all of the assets of the Borrower (or the Borrower and the Guarantors) pursuant to 11 U.S.C. section 363. The Debtors are required to comply with these milestones: (a) Entry of an Order approving the Facilities on an interim basis will have occurred within three days following the Petition Date; (b) Entry of the Final Order approving entry into the Facilities on a final basis will occur within 35 days following the Petition Date; (c) Entry of an order approving a disclosure statement for a chapter 11 plan of reorganization reasonably acceptable to the Sponsor, the Required Consenting Revolving Credit Facility Lenders and the Required Consenting Term Lenders will occur within 45 days following the Petition Date; (d) Entry of an order confirming an Acceptable Plan will occur within 105 days following the Petition Date; and (e) The Restructuring Effective Date will have occurred within 135 days following the Petition Date. Pursuant to the Credit Agreement, dated as of August 12, 2021, by and among the Company, Holdings, the guarantors party thereto, Ares Capital Corporation, as administrative agent, Truist Bank, as priority revolving agent and swing line lender, the lenders party thereto Ares Capital Management LLC, Truist Securities, Inc., as joint lead arrangers, and Ares Capital Management LLC, as lead bookrunner, which provided: (i) a $400 million term loan facility; (ii) a $100 million five-year revolving credit facility including a $10 million sublimit for the issuance of standby letters of credit and a $5 million sublimit for swingline loans; and (iii) a $100 million delayed draw term loan facility. Each of the Prepetition Credit Documents is valid, binding, and enforceable in accordance with its terms. As of the Petition Date, the Company and the Prepetition Guarantors were indebted to the Prepetition Secured Parties, in respect of the Prepetition Credit Facilities in the aggregate outstanding amount of no less than $622.5 million. As adequate protection for the use of cash collateral, the Prepetition Secured Parties are granted allowed superpriority administrative expense claims as provided for in 11 U.S.C. section 507(b) in the amount of the Prepetition First Lien Adequate Protection Claim. As further adequate protection, the Prepetition Revolving Agent, on behalf of the Prepetition Revolving Lenders, will receive monthly adequate protection payments, payable in cash on the 30th day of each month equal to the interest on a current basis under the Prepetition Credit Documents on account of the Prepetition Revolving Loans until such time as the Prepetition Revolving Loans are indefeasibly paid in full, in cash; provided that, subject to the Final Order, interest will be payable retroactive to the Petition Date at the applicable rate on the Prepetition Revolving Loans. A copy of the order is available at https://urlcurt.com/u?l=4KJmF0 from PacerMonitor.com. About Benefytt Technologies, Inc. Benefytt Technologies, Inc. and affiliates are a technology-driven distributor of insurance products covering Medicare-related insurance plans as well as other types of health insurance and supplemental products that operate in 44 states including Texas, New York, California, and Florida. The Debtors sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 23-90566) on May 23, 2023. In the petition signed by Michael DeVries, chief financial officer, the Debtor disclosed up to $10 billion in assets and up to $1 billion in liabilities. Judge Christopher M. Lopez oversees the case. The Debtors tapped KIRKLAND & ELLIS LLP and KIRKLAND & ELLIS INTERNATIONAL LLP as general bankruptcy counsel, JACKSON WALKER LLP as local bankruptcy counsel, ANKURA CONSULTING, LLC as restructuring advisor, JEFFERIES GROUP LLC as financial advisor, and STRETTO, INC. as claims and noticing agent. Wilmington Savings Fund Society, FSB, as DIP Lender, is represented by, Paul M. Basta, Esq. Joseph M. Graham, Esq., Leslie E. Liberman, Esq., and Lucian Wang, Esq at Paul, Weiss, Rifkind, Wharton & Garrison LLP. BETTER TRANSPORT: Court OKs Cash Collateral Access Thru July 18 --------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, authorized Better Transport Services, LLC to use cash collateral on an interim basis in accordance with the budget, with a 10% variance, through July 18, 2023. A search in the Texas Secretary of State shows that allegedly secured positions are held by C T Corporation System (Unknown UCC Filing 21-0028881959); Kalamata Capital Group, LLC; and FundFi Merchant Funding LLC. As adequate protection for the use of cash collateral, all creditors set forth in the UCC list are granted replacement liens on all post-petition cash collateral and post-petition acquired property to the same extent and priority they possessed as of the Petition Date. A final electronic hearing on the matter is set for July 18, 2023, at 1:30 p.m. A copy of the Court's order and the Debtor's budget is available at https://urlcurt.com/u?l=J6Y6b2 from PacerMonitor.com. The Debtor projects $170,000 in cash receipts and $146,711 in cash disbursements for a 30-day period. About Better Transport Services, LLC Better Transport Services, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 23-32218) on June 15, 2023. In the petition signed by Hana Almomani, president, the Debtor disclosed up to $100,000 in assets and up to $500,000 in liabilities. Judge Eduardo V. Rodriguez oversees the case. Robert C Lane, Esq., at The Lane Law Firm, represents the Debtor as legal counsel. BIGHORN RESTAURANTS: Wins Cash Collateral Access on Final Basis --------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Colorado authorized Bighorn Restaurants, LLC and affiliates to use cash collateral on a final basis in accordance with the budget. The Debtors have a pressing need for the continued use of cash collateral to continue operating as a going concern (including funding its day-to-day operations which includes payroll, vendors, and the costs of the Chapter 11 Case), minimize disruption, rebut any skepticism regarding the Debtors' ability to operate as a going concern, and stabilize business operations in response to the Chapter 11 Case. As of the Petition Date, the Debtors and Cadence Bank N.A., are parties to the Loan and Security Agreement dated December 9, 2020, as amended by a Forbearance and Amendment to Loan Agreement dated March 3, 2023. The Debtors executed a Term Loan Note dated December 9, 2020, in the original principal amount of $21.5 million payable to the Lender. The Debtors are indebted to the Prepetition Secured Parties in the amount of $22.4 million as of the Petition Date, consisting of principal in the amount of $22.1 million and unpaid accrued interest in the amount of $206,717, plus attorneys' fees and expenses existing immediately prior to the Petition Date. The Prepetition Secured Parties consented to the use of cash collateral only upon the conditions contained in the Cash Collateral Orders. As adequate protection, the Agent, on behalf of itself and for the benefit of the Lender, is granted a continuing replacement security interest in, and lien, junior only to the Carve Out. As additional adequate protection, the Agent and the Lender's claim in the Chapter 11 Case will have priority under 11 U.S.C. section 507(b) to the extent, if any, that the adequate protection for the Debtor's use of the Prepetition Collateral and cash collateral provided proves to be inadequate. The events that constitute a "Termination Event" include: a. Failure of the Debtors to abide by the terms, covenants, and conditions of the Final Order or the Budget; b. An application is filed by the Debtors for the approval of (or an order is entered by the Court approving) any claim arising under 11 U.S.C. section 507(b) or otherwise, or any lien in the Chapter 11 Case, which is pari passu with or senior to the Prepetition Obligations or the adequate protection liens granted, unless consented to in writing by the Agent; and c. The commencement or support of any action by Debtors or any other authorized person against Cadence (in its capacity as Agent and/or Lender) and/or against MS Facilities LLC to subordinate or avoid any liens made in connection with the Prepetition Loan Documents or to avoid any obligations incurred in connection therewith. The Debtors' ability to use cash collateral under the Final Order will terminate on the earlier of: (i) September 11 at 5 p.m. (MT), (ii) the occurrence of a Termination Event, and (iii) entry of additional orders regarding cash collateral. A copy of the Court's order and the Debtor's budget is available at https://urlcurt.com/u?l=T8dHft from PacerMonitor.com. The Debtor projects total operating disbursements, on a weekly basis, as follows: $3,410 for the week ending June 26, 2023; $3,410 for the week ending July 3, 2023; $3,410 for the week ending July 10, 2023; $3,410 for the week ending July 17, 2023; $3,410 for the week ending July 24, 2023; and $3,410 for the week ending July 31, 2023. About Bighorn Restaurants Bighorn Restaurants, LLC and affiliates constitute one of the largest current franchisees of Hardee's restaurants. They currently operate 108 restaurants, which span the states of Alabama, Florida, Georgia, South Carolina, Kansas, Missouri, Wyoming and Montana. The restaurants are operated by Empire, Heartland, Bighorn, and Atlantic Star. Bighorn Restaurants and its affiliates sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Colo. Lead Case No. 23-11919) on May 4, 2023. In the petition signed by its chief executive officer, Dewey R. Brown, Bighorn Restaurants disclosed $1 million to $10 million in assets and $10 million to $50 million in liabilities. Judge Michael E. Romero oversees the cases. The Debtors tapped Markus Williams Young & Hunsicker, LLC as bankruptcy counsel; Hutchinson Black and Cook, LLC as their special counsel; MorrisAnderson & Associates, Ltd. as financial advisor; Brookwood Associates, LLC as investment banker; and A&G Realty Partners as real estate advisor. BMC Group, Inc. is the Debtors' noticing agent. Cadence Bank, as lender, is represented by Frank W. DeBorde, Esq., and Lisa Wolgast, Esq., at Morris, Manning & Martin, LLP. BITTREX INC: Enables Customer Withdrawals During Bankruptcy Process ------------------------------------------------------------------- Ronak Kumar of The Crypto Times reports that Bittrex U.S., the American branch of crypto exchange Bittrex, is allowing customer withdrawals starting Thursday, June 15, 2023, as authorized by a ruling from a Delaware bankruptcy court. Despite opposition from the U.S. government, which claims outstanding sums for sanctions violations, Judge Brendan Shannon's decision permits Bittrex U.S. and its affiliates to enable customers with undisputed, noncontingent, and liquidated claims to withdraw their cryptocurrency assets and fiat currency from the trading platform. It's important to note that the ruling does not determine ownership of the assets or prioritize customer claims over the government's, and there is a possibility of clawbacks in the future. Patty Tomasco, a partner at Quinn Emmanuel law firm representing Bittrex, confirmed that the platform will be operational for withdrawals on June 15, 2023. In March 2023, Bittrex announced its intention to close U.S. operations, leading to significant withdrawals. The bankruptcy filing took place on May 8, 2023 with the company disclosing $300 million in customer cash and crypto holdings in the U.S. arm. Despite the customary freeze on transactions during bankruptcy proceedings, Bittrex argued for customers to access their funds without lengthy litigation. 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. BLOCKFI INC: Says Conn. Regulator Squeezing Chapter 11 Estate ------------------------------------------------------------- Bankrupt cryptocurrency lender BlockFi Inc. has sued Connecticut's banking regulator in an attempt to halt an upcoming hearing on its bid to revoke the company's money transmission license. In Adv. Pro No. 23-01159, In re BlockFi, Inc., et al. (Bankr. D.N.J. Case No. 22-19361), filed by BlockFi Trading LLC against Jorge L. Perez, Solely in his Official Capacity as Commissioner of the Connecticut Dept. of Banking, the Debtor seeks (a) to enforce the automatic stay as to the Notice and Administrative Proceeding, or in the alternative, for injunctive relief enjoining the Administrative Proceeding, and (b) a finding that the Department violated Section 525 by its actions to revoke BlockFi's monetary transmission license (the "License") and assess civil penalties. On Feb. 14, 2023, after the commencement of these Chapter 11 Cases, BlockFi was issued a Notice of Automatic Suspension, Notice of Intent to Revoke Money Transmission License, Notice of Intent to Issue Order to Cease and Desist, and Notice of Right to Hearing by the Department indicating that the money transmitter license issued by the Department to BlockFi was suspended and that a proceeding (the "Administrative Proceeding") to revoke the license and assess civil penalties against BlockFi would be forthcoming. The Notice stated that BlockFi had a right to request a hearing before a hearing officer on the matters indicated in the Notice within 14 days of receipt. BlockFi has attempted to surrender its money transmitter license to the Department to resolve this matter and avoid the need for an Administrative Proceeding. To date, the Department has refused to accept surrender of the license. After failing to come to an agreement with the Department regarding a stay of the Administrative Proceeding, BlockFi exercised its right to a hearing by submitting an Appearance and Request for Hearing (the "Hearing Request") on March 8, 2023. As of the filing of this Complaint, that hearing is scheduled for July 20, 2023, and counsel for the Department has advised BlockFi that the Department intends to go forward with the Administrative Proceeding. Should BlockFi be forced to proceed with the adjudication of the Administrative Proceeding, it would be required to retain Connecticut counsel experienced in litigating administrative matters before the Department at significant expense to the estate. Additionally, the officers and directors of BlockFi would be required to devote time and resources to assist counsel in preparation of BlockFi's defense, diverting their attention from operating as a debtor-in-possession. "This Court should exercise its authority under Sec. 105 of the Bankruptcy Code to enjoin the prosecution of the Administrative Proceeding. If the Administrative Proceeding continues, it will harm the Debtors' efforts to monetize assets efficiently and effectively and will interfere with the property of the Debtors’ estates," BlockFi Trading said in court filings. About BlockFi Inc. BlockFi is building a bridge between digital assets and traditional financial and wealth management products to advance the overall digital asset ecosystem for individual and institutional investors. BlockFi was founded in 2017 by Zac Prince and Flori Marquez and in its early days had backing from influential Wall Street investors like Mike Novogratz and, later on, Valar Ventures, a Peter Thiel-backed venture fund as well as Winklevoss Capital, among others. BlockFi made waves in 2019 when it began providing interest-bearing accounts with returns paid in Bitcoin and Ether, with its program attracting millions of dollars in deposits right away. BlockFi grew during the pandemic years and had offices in New York, New Jersey, Singapore, Poland and Argentina. BlockFi worked with FTX US after it took an $80 million hit from the bad debt of crypto hedge fund Three Arrows Capital, which imploded after the TerraUSD stablecoin wipeout in May 2022. BlockFi had significant exposure to the companies founded by former FTX Chief Executive Officer Sam Bankman-Fried. BlockFi received a $400 million credit line from FTX US in an agreement that also gave FTX the option to acquire BlockFi through a bailout orchestrated by Bankman-Fried over the summer. BlockFi also had collateralized loans to Alameda Research, the trading firm co-founded by Bankman-Fried. BlockFi is the latest crypto firm to seek bankruptcy amid a prolonged slump in digital asset prices. Lenders Celsius Network LLC and Voyager Digital Holdings Inc. also filed for court protection this year. Kirkland & Ellis is also advising Celsius and Voyager in their separate Chapter 11 cases. BlockFi Inc. and eight affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.N.J. Lead Case No. 22-19361) on Nov. 28, 2022. In the petitions signed by their chief executive officer, Zachary Prince, the Debtors reported $1 billion to $10 billion in both assets and liabilities. Judge Michael B. Kaplan oversees the cases. The Debtors taped Kirkland & Ellis and Haynes and Boone, LLP as general bankruptcy counsels; Walkers (Bermuda) Limited as special Bermuda counsel; Cole Schotz, P.C., as local counsel; Berkeley Research Group, LLC as financial advisor; Moelis & Company as investment banker; and Street Advisory Group, LLC as strategic and communications advisor. Kroll Restructuring Administration, LLC is the notice and claims agent. BRBRSHY INVESTMENTS: Taps Jones & Walden as Bankruptcy Counsel -------------------------------------------------------------- BRBRSHY Investments Inc. seeks approval from the U.S. Bankruptcy Court for the Northern District of Georgia to hire Jones & Walden, LLC as its legal counsel. The firm's services include: (a) preparing pleadings and applications; (b) conducting examination; (c) advising the Debtor of its rights, duties and obligations; (d) consulting with and representing the Debtor with respect to a Chapter 11 plan; (e) performing legal services incidental and necessary to the day-to-day operations of the Debtor's business; and (f) taking all other actions incident to the proper preservation and administration of the Debtor's estate and business. The firm will be paid at these rates: Attorneys $250 - $450 per hour Paralegals $110 - $200 per hour Cameron McCord., a partner at Jones & Walden, disclosed in a court filing that the firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Cameron M. McCord, Esq. 699 Piedmont Ave. NE Atlanta, GA 30308 Phone: (404) 564-9300 Email: cmccord@joneswalden.com About BRBRSHY Investments BRBRSHY Investments Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 23-10654) on June 5, 2023. In the petition signed by Rick Bryan, president, the Debtor disclosed up to $50 million in assets and up to $10 million in liabilities. Cameron M. McCord, Esq., at Jones & Walden, LLC, represents the Debtor as legal counsel. BUCKHEAD PROPERTY: Commences Subchapter V Bankruptcy Proceeding --------------------------------------------------------------- Buckhead Property Development LLC filed for chapter 11 protection in the Middle District of Georgia without stating a reason. The Debtor elected on its voluntary petition to proceed under Subchapter V of chapter 11 of the Bankruptcy Code. According to court filings, Buckhead Property Development 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 teleconference meeting of creditors under 11 U.S.C. Section 341(a) is slated for July 5, 2023 at 2:00 p.m. About Buckhead Property Development Buckhead Property Development LLC is a limited liability company in Georgia. Buckhead Property Development LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Ga. Case No.: 23-50755) on June 5, 2023. In the petition filed by Lloyd Dominick, as sole member, the Debtor reported assets and liabilities between $1 million and $10 million. The Debtor is represented by: William A. Rountree, Esq. Rountree Leitman Klein & Geer, LLC 111 Sweetgum Milledgeville, GA 31061 BW HOLDING: S&P Downgrades ICR to 'CCC+', Outlook Stable -------------------------------------------------------- S&P Global Ratings lowered the issuer credit rating on BW Holding Inc. to 'CCC+' from 'B-'. The outlook is stable. At the same time, S&P lowered its rating on its first-lien term loan to 'CCC+' from 'B-'. The recovery rating remains '3'. S&P said, "The stable outlook on BW Holding reflects the company's adequate liquidity and no near-term debt maturities, which we believe mitigates further near-term ratings downside. The stable outlook incorporates our expectation for a softer macroeconomic environment along with sustained high interest rates will continue to pressure cash flows and keep leverage elevated for a prolonged period. "We expect BW Holding will generate negative free operating cash flow (FOCF) in 2023, increasing its reliance on external financing to fund operations. We forecast a single-digit cash flow deficit in 2023. We estimate that interest burden of above $80 million will continue to exhaust EBITDA over the next 12 to 24 months, which combined with working capital swings and despite low capital spending will continue to pressure cash flows. As a result, we view BW's capital structure as unsustainable over the long term. We believe sustained high interest rates and a slower economic operating environment will make it increasingly difficult to generate positive free cash flow. We believe BW depends upon favorable business, financial, and economic conditions to meet its financial commitments. "BW announced today a $150 million commitment from its financial sponsor Genstar. In addition, we note that the company does not have any near-term maturities until its revolver becomes due in 2026. "The downgrade reflects our expectation for S&P Global Ratings-adjusted leverage to remain above 10x in 2023. BW Holding's revenue and EBITDA in 2022 came in under our expectations as the slowdown in demand, inflationary pressures on cost, and subsequent destocking at its customers significantly reduced earnings, resulting in S&P Global Ratings-adjusted leverage of 13.8x (11.7x excluding preferred shares) and negative FOCF of 3.6% in 2022. BW Holding's underlying performance was weaker than our expectation in 2022 and first quarter of 2023 despite double-digit revenue growth which reflects the contribution from the Cenveo acquisition that the company completed in May 2022." Its performance in 2022 was affected by supply chain disruptions and softening consumer demand amid high inflation and destocking trends that started in the fourth quarter of 2022 and further exacerbated into 2023. Additionally, volumes within the craft beverages, household products such as home decoration, and lawn and garden segments declined following COVID-19-related peaks. S&P Global Ratings-adjusted leverage was at 16.6x and adjusted FOCF to debt was negative 2.2% as of March 31, 2023. S&P said, "BW Holding is diversified across end markets, and certain end markets should be more resilient, but we believe persistently high inflation limiting consumer disposable income will constrain demand in discretionary end markets such as premium beverage, personal care, and health care in 2023. Lower demand from smaller customers will be partly offset by benefits from 2022 pricing actions and increased demand and market share gains from large consumer-packaged goods (CPGs) customers working through their sustainability goals. Additionally, as customers work through their inventory, we expect demand will pick up slightly in the latter half of the year. As a result, pro forma for 2022 acquisitions, we expect stable revenue for 2023." S&P said, "In 2022, volume declines resulted in weaker earnings due to an unfavorable product mix. As demand headwinds in its higher-margin segments and customers' inventory destocking have continued in 2023, we lowered our EBITDA margin assumptions for this year to the 18%-19% range. Our base-case forecast indicates our expectation for improved performance in the second half of the year. However, a persistent recessionary environment to the later half of 2023 could lead to further margin deterioration due to a mix change of work to replace loss of revenue from smaller customers with orders from larger CPG customers with lower margins. Under our base case, we expect S&P Global Ratings-adjusted debt to EBITDA will remain above 10x in 2023. "We believe the per order pricing mechanism can lead to price concessions if the recession continues in second half of 2023.A portion of BW Holding's sales are on a fixed-contract basis, with the remainder containing index-based pass-through mechanisms and per-order pricing to manage raw material price exposure. While this pricing mechanism benefits profitability in an inflationary environment, we do not view absence of contracts and lack of revenue visibility favorably during a recession. Additionally, the Cenveo acquisition increased the company's exposure to short and ultra-short run orders from small and micro brands. We believe increased competition in a prolonged recessionary environment can lead to price concessions to protect volume. "The stable outlook on BW Holding reflects adequate liquidity and no near-term debt maturities, which we believe mitigates further near-term ratings downside. However, we continue to expect a softer macroeconomic environment along with higher interest rates that could begin to pressure cash flow and keep leverage elevated for a prolonged period. "We could lower our rating on BW Holding if operating performance deteriorates and negative FOCF diminishes liquidity such that we believe a payment default or distressed restructuring is likely within the next 12 months. "We could raise our rating on BW Holding if the company improves its earnings, reduces leverage below 10x, and generates low-single-digit free cash flow on a sustained basis while maintaining adequate liquidity." ESG credit indicators: E-2, S-2, G-3 S&P said, "Governance is a moderately negative consideration in our credit rating analysis of BW. This is the case for most rated entities owned by private-equity sponsors. We believe BW's highly leveraged financial risk profile points to corporate decision-making that prioritizes the interests of the controlling owners. This also reflects financial sponsors' generally finite holding periods and focus on maximizing shareholder returns." CANO HEALTH: MetWest FRI Marks $1.9M Loan at 25% Off ---------------------------------------------------- Metropolitan West Fund's Floating Rate Income Fund has marked its $1,992,673 loan extended to Cano Health, LLC to market at $1,504,468 or 75% of the outstanding amount, as of March 31, 2023, according to a disclosure contained in the MetWest Fund's Form N-CSR for the Fiscal year ended March 31, 2023, filed with the Securities and Exchange Commission. Floating Rate Income Fund is a participant in a First Lien Term Loan (SOFR plus 4%) to Cano Health, LLC. The loan accrues interest at a rate of 8.81% per annum. The loan matures on November 23, 2027. The Metropolitan West Funds is an open-end management investment company organized as a Delaware statutory trust on December 9, 1996 and registered under the Investment Company Act of 1940, as amended. Metropolitan West Asset Management, LLC, a federally registered investment adviser, provides the Funds with investment management services. The Trust currently consists of 14 separate portfolios. Cano Health, LLC operates primary care centers and supports affiliated medical practices. The Company specializes in primary care for seniors, as well as promotes activities and care to improve both physical health and well-being and offers population health management programs. Cano Health serves patients in the United States. CELSIUS NETWORK: Updates Bankruptcy Plan After Fahrenheit Deal -------------------------------------------------------------- Jack Schickler of Coin Desk reports that defunct crypto lender Celsius has filed an updated bankruptcy plan to reflect a successful bid for assets by the Fahrenheit consortium. Fahrenheit, a consortium of buyers that includes venture capital firm Arrington Capital and miner US Bitcoin Corp, was announced as successful bidder in May, ousting an attempt by NovaWulf to claim the company whose assets were previously valued at around $2 billion. The plan, filed early Thursday, June 15, 2023, must be agreed by the New York bankruptcy court overseeing the wind-up, and is already set to see creditor pushback. "This proposed treatment violates every consumer lending law out there," tweeted David Adler of law firm McCarter & English, saying that the group of borrowers he represents in the case will oppose the plan because Celsius won't return their collateral. The Celsius group "need to show that they are moving the case forward and communicating with constituencies" in order to keep the exclusive right to propose a bankruptcy plan, Adler added, saying that his clients had been ignored and "treat[ed] like mushrooms for the past seven weeks." Under the Fahrenheit deal, the new company will get between $450 and $500 million in liquid cryptocurrency, and US Bitcoin Corp will construct a range of crypto mining facilities including a new 100 megawatt plant. 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 bankruptcy 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 bankruptcy counsel; Elementus Inc. as blockchain forensics advisor; M3 Advisory Partners, LP as financial advisor; and Perella Weinberg Partners, LP as investment banker. Shoba Pillay, Esq., is the examiner appointed in the Debtors' Chapter 11 cases. Jenner & Block, LLP and Huron Consulting Services, LLC serve as the examiner's legal counsel and financial advisor, respectively. CENPORTS COMMERCE: Court OKs Cash Collateral Access Thru Oct 30 --------------------------------------------------------------- The U.S. Bankruptcy Court for the Central District of California authorized Cenports Commerce Inc. to use cash collateral on a final basis in accordance with the budget, with a 10% variance, through October 30, 2023. As previously reported by the Troubled Company Reporter, the secured creditors effected by the Debtor's proposed use of cash collateral -- in the order of priority of UCC filings -- are: 1. Fundbox: $86,200; UCC filed on May 12, 2020 2. SBA: $97,500; UCC filed on May 5, 2020 3. Payability: $1,115; UCC filed on July 17, 2020 4. Cedar Advance: $ is unknown; UCC filed on September 30, 2020 5. Wolters Kiuwer Lien Solutions: $ is unknown; UCC filed on February 16, 2021 6. Swift Financial: $ is unknown; UCC filed on September 7, 2021 7. Toyota Industrial Commercial Finance: $20,022; UCC filed on September 16, 2021. Collateral securing Toyota's claim is a used Toyota Forklift; Serial No.: FBE15U-12408 8. Arc Technologies, Inc.: $163,846; UCC filed on February 18, 2022 9. Wolters Kluwer Lien Solutions: $ is unknown; UCC filed on March 30, 2022 10. Toyota Industrial Commercial Finance: $23,245; UCC filed on April 12, 2022. Collateral securing Toyota's claim is a used Toyota Forklift; Serial No.: 8FBE2OU-10728 11. Wynwest Advance: $88,160; UCC filed on March 2, 2023 12. Uptown Fund LLC: $262,000; UCC filed on March 15, 2023 13. Halo T LLC: $550,510; UCC filed on March 29, 2023 14. PIRS Capital, LLC: $158,390; UCC filed on April 6, 2023 15. Vernon Capital: $ is unknown; UCC filed on April 18, 2023 16. Unique Funding Solutions: $190,050; UCC filed on April 19,2023 17. Webfund: $348,777; UCC filed on April 20, 2023. The Court held that starting July 2023, the Debtor will set aside $1,000 monthly to deposit into the client trust account of the Debtor's counsel for the anticipated fees of the Subchapter V Trustee. The secured creditors' liens that existed against the cash collateral on the petition date will attach to the receivables that the Debtor collects between petition date and October 30, 2023. A copy of the order is available at https://urlcurt.com/u?l=5TKjZw from PacerMonitor.com. About Cenports Commerce Inc. Cenports Commerce Inc. is a B2B drop shopping (virtual distribution) company that helps brands sell products online to HomeDepot, Lowes, etc. under their own account. The Company has no inventory and uses internal tools to help retailers. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Cal. case No. 23-40478) on April 25, 2023. In the petition signed by Derrick Chen, as CEO of Censports Commerce Holding Inc., the Debtor's shareholder, the Debtor disclosed $212,973 in assets and $7,391,240 in liabilities. Judge Charles Novack oversees the case. Michael Jay Berger, Esq., at the Law Offices of Michael Jay Berger, represents the Debtor as legal counsel. CENTER FOR ALTERNATIVE: Mark Dennis Named Subchapter V Trustee -------------------------------------------------------------- The U.S. Trustee for Region 11 appointed Mark Dennis, a certified public accountant at SL Biggs, as Subchapter V trustee for Center for Alternative Medicine, PLLC. Mr. Dennis will be paid an hourly fee of $375 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Dennis declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Mark D. Dennis, CPA SL Biggs, A Division of SingerLewak, LLP 2000 S. Colorado Blvd., Tower 2, Ste. 200 Denver, CO 80222 Phone: 303-226-5471 Email: mdennis@slbiggs.com About Center for Alternative Center for Alternative Medicine, PLLC specializes in the management and treatment of disc lesions, overuse soft tissue injuries, traumatic injuries, pain management, and peripheral neuropathies. The company is based in Pueblo, Colo. The Debtor filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. D. Colo. Case No. 23-12482) on June 7, 2023, with $500,000 to $1 million in assets and $1 million to $10 million in liabilities. Theodore Wilding Davis, managing member, signed the petition. Judge Joseph G. Rosania, Jr. oversees the case. Joshua B. Sheade, Esq., at Sheade Law Office, LLC is the Debtor's legal counsel. CENTURYLINK INC: MetWest FRI Marks $533,647 Loan at 34% Off ----------------------------------------------------------- Metropolitan West Fund's Floating Rate Income Fund has marked its $533,647 loan extended to CenturyLink, Inc to market at $354,542 or 66% of the outstanding amount, as of March 31, 2023, according to a disclosure contained in the MetWest Fund's Form N-CSR for the fiscal year ended March 31, 2023, filed with the Securities and Exchange Commission. Floating Rate Income Fund is a participant in a First Lien Term Loan B (SOFR plus 2.36%) to CenturyLink, Inc. The loan accrues interest at a rate of 7.17% per annum. The loan matures on March 15, 2027. The Metropolitan West Funds is an open-end management investment company organized as a Delaware statutory trust on December 9, 1996 and registered under the Investment Company Act of 1940, as amended. Metropolitan West Asset Management, LLC, a federally registered investment adviser, provides the Funds with investment management services. The Trust currently consists of 14 separate portfolios. CenturyLink, Inc., headquartered in Monroe, Louisiana, is an integrated communications company that provides an array of communications services to residential, business, governmental and wholesale customers. CHALLENGER BRASS: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Challenger Brass & Copper Co Inc. Bo. Candelaria Road 866 KM 0.8 Toa Baja, PR 00949 Business Description: The Debtor is engaged in the manufacturing and commercialization of copper, brass, bronze, stainless steels, and aluminum. Chapter 11 Petition Date: June 23, 2023 Court: United States Bankruptcy Court District of Puerto Rico Case No.: 23-01917 Judge: Hon. Edward A. Godoy Debtor's Counsel: Jesus Enrique Batista Sanchez, Esq. THE BATISTA LAW GROUP, PSC 239 Ave Arterail Hostos Ste 206 San Juan PR 00918-1475 Tel: (787) 620-2856 Email: jeb@batistasanchez.com Total Assets: $1,031,500 Total Liabilities: $2,540,722 The petition was signed by Abimael Padilla Negron as authorized representative of the Debtor. 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/EH6GBJI/CHALLENGER_BRASS__COPPER_CO_INC__prbke-23-01917__0001.0.pdf?mcid=tGE4TAMA CHESAPEAKE ENERGY: Egan-Jones Retains BB+ Senior Unsecured Ratings ------------------------------------------------------------------ Egan-Jones Ratings Company, on June 16, 2023, retained its 'BB+' foreign currency and local currency senior unsecured ratings on debt issued by Chesapeake Energy Corporation. Previously, on June 6, 2023, EJR, upgraded the foreign currency and local currency senior unsecured ratings on debt issued by Chesapeake Energy to BB+ from BB. Headquartered in Oklahoma City, Oklahoma, Chesapeake Energy Corporation produces oil and natural gas. CHICK LUMBER: Court OKs Cash Collateral Access Thru Sept 30 ----------------------------------------------------------- The U.S. Bankruptcy Court for the District of New Hampshire authorized Chick Lumber, Inc. to use cash collateral of up to $2,141,960 on an interim basis in accordance with the budget, through September 30, 2023. The Debtor is directed make these adequate protection payments on the last day of each month: (i) $482 to Jeldwen, Inc.; (ii) $25 to BFG Corporation (H2H NC Paint Tinter); (iii) $38 to GreatAmerica Financial Services Corp.; (iv) $0.00 to Citizens One Auto Finance; (v) $227 to Citizens One Auto Finance; (vi) $212 to Citizens One Auto Finance; (vii) $40 to Wells Fargo Equipment Finance, Inc. - Forklift; (viii) $63 to Wells Fargo Equipment Finance, Inc. - Moffett Machine; (ix) $82.22 to Hitachi Capital Financial; and (x) $1,198 to Citizens Financial Group, Inc., as the assignee of the claim of American Express Bank, FSB. Each Record Lienholder is granted a replacement lien in, to and on the Debtor's post-petition property of the same kinds and types as the collateral in, to and on which it held or claims to have held valid and enforceable, perfected liens on the Petition Date as security for any loss or diminution in the value of the collateral held by any the Record Lienholder. The replacement liens granted: a. will be deemed valid and perfected notwithstanding any requirements of non-bankruptcy law with respect to perfection. b. will be supplemental and in addition to any liens held on the petition date. c. will be effective as of the Petition Date and will maintain the same priority, validity and enforceability as the liens held by the by such Record Lienholder on that date and will be senior to any liens or any allowed super-priority claim subsequently granted to any other person or entity with Court approval. A further hearing on the matter is set for September 20 at 11 a.m. A copy of the Court's order and the Debtor's budget is available at https://urlcurt.com/u?l=IEhRjx from PacerMonitor.com. The budget provides for total cash out, on a monthly basis, as follows: $706,734 for July 2023; $729,825 for August 2023; and $705,401 for September 2023. About Chick Lumber Chick Lumber, Inc. -- https://www.chicklumber.com/ -- is a dealer of lumber, plywood, steel beams, engineered wood, trusses, steel and asphalt roofing, windows, doors, siding, trim, stair parts, and finish materials. It also offers drafting and design, installation, delivery, outside sales, and plan reading and estimating services. The Debtor sought Chapter 11 protection (Bankr. D.N.H. Case No. 19-11252) on Sept. 9, 2019, in Concord. In the petition signed by Salvatore Massa, president, the Debtor disclosed between $1 million and $10 million in both assets and liabilities. Judge Bruce A. Harwood oversees the case. William S. Gannon PLLC is the Debtor's legal counsel. The Office of the U.S. Trustee appointed a committee of unsecured creditors on Oct. 3, 2019. The Committee is represented by Goldstein & McClintock, LLLP as its legal counsel. CHRISTMAS TREE: Committee Taps Porzio, Bromberg & Newman as Counsel ------------------------------------------------------------------- The official committee of unsecured creditors appointed in the Chapter 11 cases of Christmas Tree Shops, LLC and its affiliates seeks approval from the U.S. Bankruptcy Court for the District of Delaware to employ Porzio, Bromberg & Newman, PC as legal counsel. The firm will render these services: (a) advise the committee with respect to its power and duties under Bankruptcy Code section 1103; (b) assist the committee in its investigation of the acts, conduct, assets, liabilities, and financial condition of the Debtors; (c) assist the committee in connection with the Debtors' proposed sale of their assets; (d) assist the committee in connection with any proposed Chapter 11 plan or other disposition of these cases; (e) assist the committee in analyzing the claims of the Debtors' creditors and their capital structure and in negotiating with holders of claims; (f) advise and represent the committee in connection with matters generally arising in these cases; (g) review and analyze all applications, motions, orders, statements of operations and schedules filed with the court by the Debtors or third parties, advise the committee as to their propriety, and, after consultation with the committee, take appropriate action; (h) prepare necessary legal papers on behalf of the committee; (i) represent the committee at hearings held before the court and communicate with the committee regarding the issues raised, as well as the decisions of the court; and (j) perform other legal services as necessary. The hourly rates of the firm's counsel and staff are as follows: Warren J. Martin Jr., Principal $1,095 John S. Mairo, Principal $875 Brett S. Moore, Principal $795 Robert M. Schechter, Principal $795 Kelly D. Curtin, Principal $735 Cheryl A. Santaniello, Principal $735 Rachel A. Parisi, Principal $735 David E. Sklar, Associate $595 Christopher P. Mazza, Associate $550 Dean M. Oswald, Associate $440 Maria P. Dermatis, Paralegal $350 Jessica M. O'Connor, Paralegal $315 In addition, the firm will seek reimbursement for expenses incurred. The firm provided the following in response to the request for additional information set forth in Paragraph D.1 of the U.S. Trustee Guidelines: Question: Did you agree to any variations from, or alternatives to, its standard billing arrangements for this engagement? Answer: Porzio did not agree to a variation of its standard or customary billing arrangements for this engagement. Question: Do any of the professionals in this engagement vary their rate based on the geographic location of the bankruptcy case? Answer: None of the professionals included in this engagement have varied their rate based upon the geographic location of these Chapter 11 cases. Question: If you represented the Debtors in the 12 months prepetition, disclose your billing rates and material financial terms for the prepetition engagement, including any adjustments during the 12 months prepetition. If its billing rates and material financial terms have changed post-petition, explain the difference and the reasons for the difference. Answer: The committee retained Porzio on May 22, 2023. The billing rates for the period prior to this application are the same as indicated in this application. Question: Has your client approved your prospective budget and staffing plan, and, if so, for what budget period? Answer: Porzio, in conjunction with the committee, is developing a prospective budget and staffing plan in a reasonable effort to comply with the Office of the United States Trustee Guidelines and any additional disclosures. Warren Martin Jr., Esq., an attorney at Porzio, Bromberg & Newman, disclosed in a court filing that the firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Warren J. Martin Jr., Esq. Robert M. Schechter, Esq. Rachel A. Parisi, Esq. Porzio, Bromberg & Newman, PC 100 Southgate Parkway P.O. Box 1997 Morristown, NJ 07962 Telephone: (973) 538-4006 Facsimile: (973) 538-5146 Email: wjmartin@pbnlaw.com rmschechter@pbnlaw.com raparisi@pbnlaw.com About Christmas Tree Shops Christmas Tree Shops, LLC is a home-decor retailer that was spun off from Bed Bath & Beyond in 2020. It operates a chain of brick-and-mortar home goods retail stores that specializes in year-round seasonal goods at value pricing. Christmas Tree Shops stores offer a variety of products including home decor, bed and bath products, kitchen and dining products, furniture, food and seasonal products. Christmas Tree Shops and four of its affiliates sought Chapter 11 bankruptcy protection (Bankr. D. Del., Lead Case No. 23-10576) on May 5, 2023. At the time of the filing, Christmas Tree Shops listed $50 million to $100 million in assets and $100 million to $500 million in liabilities. Judge Thomas M. Horan presides over the Debtors' cases. The Debtors tapped Murphy & King, P.C. and Troutman Pepper Hamilton Sanders, LLP as bankruptcy counsels; and FAAN Advisors Group Inc. as financial advisor. Kurtzman Carson Consultants, LLC is the Debtors' claims and noticing agent. The Office of the U.S. Trustee for Region 3 appointed an official committee of unsecured creditors in these Chapter 11 cases. The committee tapped Womble Bond Dickinson (US) LLP and Porzio, Bromberg & Newman, PC as counsel and Rock Creek Advisors, LLC as financial advisor. CHRISTMAS TREE: Committee Taps Rock Creek as Financial Advisor -------------------------------------------------------------- The official committee of unsecured creditors appointed in the Chapter 11 cases of Christmas Tree Shops, LLC and its affiliates seeks approval from the U.S. Bankruptcy Court for the District of Delaware to employ Rock Creek Advisors, LLC as financial advisor. The firm will render these services: (a) assist with the review and analysis of the Debtors' "first day" orders and the budgets relating to those orders; (b) assist with a review of the Debtors' business model, operations, assets and liabilities, sales, dispositions or any proposed alternative transactions with Debtors' assets or businesses; (c) assist in the review of financial information; (d) assist in the review of the Debtors' cost/benefit evaluations with respect to the assumption or rejection of executory contracts and/or unexpired leases; (e) assist in the investigation and pursuit of avoidance actions; (f) assist in the review of the claims reconciliation and estimation process; (g) attend meetings with the Debtors, and creditors, potential investors, the committee, and any other official committees organized in these Chapter 11 cases, the U.S. Trustee, other parties-in-interest, and professionals hired by the same, as requested; (h) assist with review and/or preparation of information and analysis necessary for the confirmation of a plan of liquidation in these Chapter 11 cases; and (i) render such other general business consulting or other assistance as the committee or its other retained professionals may deem necessary. The hourly rates of the firm's counsel and staff are as follows: Directors $475 - $595 Associates $250 - $475 In addition, the firm will seek reimbursement for expenses incurred. Brian Ayers, Esq., managing director at Rock Creek Advisors, disclosed in a court filing that his firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Brian E. Ayers, Esq. Rock Creek Advisors, LLC 1738 Belmar Blvd. Belmar, NJ 07719 Telephone: (201) 315-2521 Email: bayers@rockcreekfa.com About Christmas Tree Shops Christmas Tree Shops, LLC is a home-decor retailer that was spun off from Bed Bath & Beyond in 2020. It operates a chain of brick-and-mortar home goods retail stores that specializes in year-round seasonal goods at value pricing. Christmas Tree Shops stores offer a variety of products including home decor, bed and bath products, kitchen and dining products, furniture, food and seasonal products. Christmas Tree Shops and four of its affiliates sought Chapter 11 bankruptcy protection (Bankr. D. Del., Lead Case No. 23-10576) on May 5, 2023. At the time of the filing, Christmas Tree Shops listed $50 million to $100 million in assets and $100 million to $500 million in liabilities. Judge Thomas M. Horan presides over the Debtors' cases. The Debtors tapped Murphy & King, P.C. and Troutman Pepper Hamilton Sanders, LLP as bankruptcy counsels; and FAAN Advisors Group Inc. as financial advisor. Kurtzman Carson Consultants, LLC is the Debtors' claims and noticing agent. The Office of the U.S. Trustee for Region 3 appointed an official committee of unsecured creditors in these Chapter 11 cases. The committee tapped Womble Bond Dickinson (US) LLP and Porzio, Bromberg & Newman, PC as counsel and Rock Creek Advisors, LLC as financial advisor. CHRISTMAS TREE: Committee Taps Womble Bond Dickinson as Counsel --------------------------------------------------------------- The official committee of unsecured creditors appointed in the Chapter 11 cases of Christmas Tree Shops, LLC and its affiliates seeks approval from the U.S. Bankruptcy Court for the District of Delaware to employ Womble Bond Dickinson (US) LLP as co-counsel with Porzio, Bromberg & Newman, PC. The firm will render these services: (a) advise the committee with respect to its powers and duties; (b) assist the committee in investigating the acts, conduct, assets, liabilities, and financial condition of the Debtors, the operation of their businesses, potential claims, and any other matters relevant to these cases, to the sale of assets, or to the formulation of a plan of reorganization or liquidation; (c) participate in the formulation of a plan; (d) provide legal advice as necessary with respect to any disclosure statement and plan filed in these Chapter 11 cases and with respect to the process for approving or disapproving disclosure statements and confirming or denying confirmation of a plan; (e) prepare legal papers; (f) appear in court to present necessary motions, applications, objections, and pleadings, and otherwise protect the interests of those represented by the committee; (g) assist the committee in requesting the appointment of a trustee or examiner, should such action be necessary; and (h) perform such other legal services as may be required and as are in the best interests of the committee and creditors. The hourly rates of the firm's counsel and staff are as follows: Partners $325 - $1,390 Of Counsel $380 - $845 Associates $305 - $625 Senior Counsel $125 - $780 Counsel $100 - $795 Paralegals $95 - $545 In addition, the firm will seek reimbursement for expenses incurred. The firm provided the following in response to the request for additional information set forth in Paragraph D.1 of the U.S. Trustee Guidelines: Question: Did you agree to any variations from, or alternatives to, its standard billing arrangements for this engagement? Answer: The firm did not agree to a variation of its standard and customary billing arrangements for the engagement. Question: Do any of the professionals in this engagement vary their rate based on the geographic location of the bankruptcy case? Answer: The firm's professionals included in the engagement have not varied their rates based on the geographic location of these Chapter 11 cases. Question: If you represented the Debtors in the 12 months prepetition, disclose your billing rates and material financial terms for the prepetition engagement, including any adjustments during the 12 months prepetition. If its billing rates and material financial terms have changed post-petition, explain the difference and the reasons for the difference. Answer: The firm did not represent the committee prior to the petition date. Question: Has your client approved your prospective budget and staffing plan, and, if so, for what budget period? Answer: The firm is developing a staffing plan and is currently developing a prospective budget for these Chapter 11 cases to comply with any requests for information and additional disclosures by the U.S. Trustee and any other orders of the court, recognizing that, during the course of these Chapter 11 cases, there may be unforeseeable fees and expenses that will need to be addressed by the committee and the firm. They will review the budget and staffing plan throughout these Chapter 11 cases to determine any adjustments required to it. Matthew Ward, Esq., a partner at Womble Bond Dickinson (US), disclosed in a court filing that the firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Matthew P. Ward, Esq. Ericka F. Johnson, Esq. Morgan L. Patterson, Esq. Lisa Bittle Tancredi, Esq. Womble Bond Dickinson (US) LLP 1313 North Market Street, Suite 1200 Wilmington, DE 19801 Telephone: (302) 252-4320 Facsimile: (302) 252-4330 Email: matthew.ward@wbd-us.com ericka.johnson@wbd-us.com morgan.patterson@wbd-us.com lisa.tancredit@wbd-us.com About Christmas Tree Shops Christmas Tree Shops, LLC is a home-decor retailer that was spun off from Bed Bath & Beyond in 2020. It operates a chain of brick-and-mortar home goods retail stores that specializes in year-round seasonal goods at value pricing. Christmas Tree Shops stores offer a variety of products including home decor, bed and bath products, kitchen and dining products, furniture, food and seasonal products. Christmas Tree Shops and four of its affiliates sought Chapter 11 bankruptcy protection (Bankr. D. Del., Lead Case No. 23-10576) on May 5, 2023. At the time of the filing, Christmas Tree Shops listed $50 million to $100 million in assets and $100 million to $500 million in liabilities. Judge Thomas M. Horan presides over the Debtors' cases. The Debtors tapped Murphy & King, P.C. and Troutman Pepper Hamilton Sanders, LLP as bankruptcy counsels; and FAAN Advisors Group Inc. as financial advisor. Kurtzman Carson Consultants, LLC is the Debtors' claims and noticing agent. The Office of the U.S. Trustee for Region 3 appointed an official committee of unsecured creditors in these Chapter 11 cases. The committee tapped Womble Bond Dickinson (US) LLP and Porzio, Bromberg & Newman, PC as counsel and Rock Creek Advisors, LLC as financial advisor. CITY BREWING: MetWest FRI Marks $986,000 Loan at 58% Off -------------------------------------------------------- Metropolitan West Fund's Floating Rate Income Fund has marked its $986,234 loan extended to City Brewing Co. LLC to market at $417,039 or 42% of the outstanding amount, as of March 31, 2023, according to a disclosure contained in the MetWest Fund's Form N-CSR for the Fiscal year ended March 31, 2023, filed with the Securities and Exchange Commission. Floating Rate Income Fund is a participant in a First Lien Term Loan B (LIBOR plus 3.50%) to City Brewing Co. LLC. The loan accrues interest at a rate of 8.32% per annum. The loan matures on April 5, 2028. The Metropolitan West Funds is an open-end management investment company organized as a Delaware statutory trust on December 9, 1996 and registered under the Investment Company Act of 1940, as amended. Metropolitan West Asset Management, LLC, a federally registered investment adviser, provides the Funds with investment management services. The Trust currently consists of 14 separate portfolios. City Brewing Company, LLC operates as a brewery company. The Company produces beverages by contract, including beer, malts, teas, and energy drinks. CIVITAS RESOURCES: Fitch Puts 'BB-' LongTerm IDR on Positive Watch ------------------------------------------------------------------ Fitch Ratings has placed the 'BB-' Long-Term Issuer Default Rating (IDR) and all issue-level ratings of Civitas Resources, Inc. (Civitas) on Rating Watch Positive (RWP). Fitch has also assigned a 'BB-'/'RR4' instrument rating to the proposed unsecured notes. The Rating Watch follows the announcement that Civitas has entered into an agreement to acquire Hibernia Resources III LLC (Hibernia) and Tap Rock Resources LLC (Tap Rock), excluding the Olympus area, for a combined $4.7 billion. The transaction will materially increase production size and proved reserves base, will be accretive to post-dividend FCF and will diversify production outside of the DJ Basin. The deal under the proposed terms and funding mix will significantly increase gross debt and leverage; however, the company will maintain clear headroom under Fitch's leverage sensitivity with leverage projected to remain at or below 1.5x through the forecast. Fitch expects to resolve the Positive Watch at the close of the transactions which is expected to result in at least a one-notch upgrade to the IDR, revolver, and unsecured ratings. Fitch expects the transaction to close in early August. KEY RATING DRIVERS Scale and Diversification Enhancing Acquisitions: Fitch believes the announced acquisitions of Hibernia and Tap Rock are transformational to Civitas' operating profile. The transactions diversify Civitas' asset profile and add material scale through approximately 68,000 net acres in the Permian Basin, 100 Mboepd of liquids-weighted production and 800 highly economic drilling locations. Fitch views the entry into the Permian favorably as it is a more regulatory friendly basin to operate in compared to the DJ Basin and regulation risk in Colorado has historically been a constraint on the rating. Gross Debt Increases; Leverage Remains Low: Although the transaction is leveraging in the near term through the addition of approximately $3.4 billion of debt to the company's balance sheet, Fitch forecasts mid-cycle EBITDA leverage to remain at or below 1.5x. Fitch expects that free cash flow will be allocated towards paying back RBL borrowings. The company has a goal to return to below 1x net leverage by YE 2024 and achieve a long-term net leverage target of 0.75x. FCF Prioritized Over Drill Bit Growth: Civitas aims to keep organic production flat to benefit FCF generation. Hibernia and Tap Rock are currently operating with 3 and 4 rigs, respectively, and Civitas plans to drop both locations to two rigs moving forward in order to prioritize FCF generation. Fitch expects 50% of the company's FCF, gross of working capital changes, will be distributed to shareholders through a variable dividend on top of a quarterly fixed dividend of $0.50/share. Under Fitch's base case, Civitas is forecast to generate approximately $500 million and $400 million of post-dividend FCF in 2023 and 2024, respectively, which will provide Civitas with funding for debt reduction, potential cash supported M&A, development activities or further shareholder activities. Civitas strong pro forma FCF is underpinned by its scale and improved liquids mix which are expected to support strong unhedged cash netbacks. Near Two Years of Permits in Hand: Civitas has 100% of the 2023 development plan permitted and is progressing through 2024 permits. Civitas' permitting status consists approximately 600 wells in various stages of progress on top of 132 locations that were approved in 2022. Civitas balances its two-rig program in the DJ Basin with drilling rig allocations between its Southern position (e.g. Adams county, Arapahoe county) where it has large blocky inventory positions that are oilier and more rural, its rural Eastern position (e.g. eastern Weld county and acquired Bison Oil & Gas acreage) and its Western position (e.g. Broomfield county and western portion of Weld county) which is more developed, but is more likely to experience permitting challenges. PDP-Focused Hedging Policy: Civitas' hedging strategy is expected to change post-close as the company plans to hedge a substantial portion of target oil volumes through 2024 in order to maintain leverage and liquidity throughout a $40 oil price scenario. Fitch views this shift positively as it will meaningfully reduce near-term pricing risk and will support FCF generation and reduction of the RBL borrowings. Civitas has historically had a low percentage of production hedged due to its strong balance sheet and sub-0.5x standalone leverage profile. At 1Q23, Civitas had minimal oil hedging in place and approximately 26% and 10% of its expected 2023 and 2024 natural gas production hedged, respectively. Colorado Regulatory Risk: Fitch continues to assess regulatory risk within Colorado as high relative to other hydrocarbon-producing states. However, Fitch believes since the beginning of 2021 the risk has lessened following the overhaul of state laws that changed the Colorado Oil & Gas Conservation Commission's (COGCC) mission from fostering the development of oil and gas resources to regulating their development. The current rules, which established a single-permit process rather than the previous multistep process, have provided a tough but navigable framework that producers are learning to operate within. Fitch anticipates knowledge gained from permit applications and continued collaboration with the COGCC and communities will help the permitting process become more efficient over time. Civitas' ESG investments to achieve a Scope 1 and Scope 2 carbon neutral position through a combination of operational improvements and emission offset credits also support its ability to continue to permit development plans. DERIVATION SUMMARY Civitas is the largest producer within Fitch's 'BB-' rating category with 1Q23 standalone production of 159mboepd. This compares to Permian Resources Corporation (BB-/Stable; 154mboepd) and SM Energy (BB-/Stable; 146mboepd). Pro forma the Hibernia and Tap Rock acquisitions, Civitas is expected to produce approximately 270-290 mboepd, which is significantly larger than 'BB-' peers. Pro forma production is higher than Murphy Oil Corporation in 1Q23 (BB+/Stable; 180mboepd), but trails APA Corporation (BBB-/Stable; 394mboped) and Ovintiv, Inc. (BBB-/Stable; 514mboepd). Civitas' 1Q23 standalone Fitch-calculated unhedged cash netback of $31.6/boe compares favorably across Fitch's aggregate E&P portfolio due to its low-cost structure and oil percentage (45% in 1Q23). Although Civitas' 1Q23 netbacks are already higher than 'BB-' Permian peers Permian Resources ($30.6/boe) and SM Energy ($29.4/boe), Fitch expects netbacks to further improve with exposure to the Permian. Civitas has historically had the lowest leverage in the peer group (0.2x at YE22) due to the low amount of gross debt; however, pro forma the acquisitions and note issuances, Civitas' mid-cycle EBITDA leverage of 1.5x is more comparable to the peer group. KEY ASSUMPTIONS Fitch's Key Assumptions Within Its Rating Case for the Issuer Include - WTI (USD/bbl) of $80 in 2023, $70 in 2024, $60 in 2025 and $50 thereafter; - Henry Hub (USD/mcf) of $3.50 in 2023 and 2024, $3.00 in 2025 and $2.75 thereafter; - Base interest rates applicable to the company's outstanding variable rate debt obligations reflects current SOFR forward curve; - No organic production growth in DJ Basin; - Announced transactions close in 3Q23 under proposed terms; - Midstream operations in line with historical results; - Capex in line with management expectations; - Base dividend portion of dividend does not increase through forecast, variable divided remains at 50% of post-base dividend FCF - FCF applied to reduction of the RBL. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: - Fitch expects to resolve the RWP upon completion of the contemplated transactions under proposed terms; - Further developing a permitting track record within the state regulatory regime without unreasonable delays; - Proven economic access to debt capital markets that moderates potential future liquidity and refinance risks; - Increased scale in areas within the DJ Basin or out of basin diversification that helps mitigate overall regulatory and community opposition event risks; - Midcycle EBITDA Leverage maintained at or below 1.5x. Factors that could, individually or collectively, lead to negative rating action/downgrade: - Midcycle EBITDA Leverage sustained over 2.0x; - A regulatory change that affects unit economics or visibility on future operations; - Sustained negative post-dividend FCF stressing liquidity or underinvestment in asset base. LIQUIDITY AND DEBT STRUCTURE Reduced Post-Close Liquidity: Fitch expects Civitas' post-close liquidity will be reduced given the $731 million draw on the RBL and $400 million of cash from the balance sheet that will be used to fund the acquisitions. Fitch believes the liquidity profile will improve thereafter due to reduction of RBL borrowings via FCF generation. The company has secured $800 million of incremental commitments from its lenders which will bring total elected commitments from $1 billion to $1.8 billion. At 1Q23, the company had $556 million of cash on the balance sheet and full availability on the RBL, excluding $12.1 million letter of credit. ISSUER PROFILE Civitas Resources, Inc. is an oil and gas producer focused on developing and producing crude oil, natural gas and NGLs in Colorado's Denver-Julesburg Basin. ESG CONSIDERATIONS Civitas Resources, Inc. has an ESG Relevance Score of '4' for Exposure to Social Impacts due to the oil and gas sector regulatory environment in Colorado and its exposure to social resistance, which has a negative impact on the credit profile, and is relevant to the rating in conjunction with other factors. 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 ----------- -------- ----- Civitas Resources, Inc. LT IDR BB- Rating Watch On BB- senior unsecured LT BB- New Rating RR4 senior unsecured LT BB- Rating Watch On RR4 BB- senior secured LT BB+ Rating Watch On RR1 BB+ CLEARWATER CONTRACTING: Case Summary & 20 Top Unsecured Creditors ----------------------------------------------------------------- Debtor: Clearwater Contracting LLC 3618 Bannock Ave Nampa, ID 83686 Chapter 11 Petition Date: June 23, 2023 Court: United States Bankruptcy Court District of Idaho Case No.: 23-00315 Judge: Hon. Noah G. Hillen Debtor's Counsel: Matthew Christensen, Esq. JOHNSON MAY 199 N. Capitol Blvd. Suite 200 Boise, ID 83702 Tel: (208) 384-8588 Email: mtc@johnsonmaylaw.com Total Assets: $2,291,065 Total Liabilities: $2,177,009 The petition was signed by William Prather as president. A full-text copy of the petition containing, among other items, a list of the Debtor's 20 largest unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/QXI653Q/Clearwater_Contracting_LLC__idbke-23-00315__0001.0.pdf?mcid=tGE4TAMA COBRA HOLDINGS: S&P Cuts Sec. First-Lien Credit Facilities to 'B-' ------------------------------------------------------------------ S&P Global Ratings revised its outlook on investment management software and solutions provider Cobra Holdings Inc. (doing business as Confluence) to negative from stable. At the same time, S&P lowered its issue-level rating on its senior secured first-lien credit facilities to 'B-' from 'B' and revised the recovery rating to '3' from '2' due to the increase in first-lien debt. The negative outlook reflects the potential S&P will lower its ratings if the company underperforms its forecast and we believe it will generate sustained FOCF deficits. Confluence's weak cash flow and very high leverage are increasing credit risk. The company's integration of Investment Metrics LLC (IM) and Compliance Solutions Strategies (CSS), which it acquired in late 2021, continues to take longer and cost more than S&P initially expected. These higher integration and other expenses, along with its lower-than-expected bookings, will cause Confluence's leverage to remain in the mid- to high-teens through 2024 (mid-teens in 2023 and about 10x in 2024 when excluding preferred stock). S&P expects rising interest expense, due to the effect of higher interest rates on its floating-rate debt, will contribute to a material cash burn in 2023. The company had fully drawn its revolver as of the end of the first quarter of 2023 to fund its operations. Confluence also recently issued a privately placed $75 million incremental term loan due in 2028 to repay its revolver borrowings and bolster its liquidity. S&P said, "The incremental debt alleviated Confluence's near-term liquidity pressure; however, we do not expect it will generate positive FOCF until 2025. We view the company's ability to issue the incremental term loan at a reasonable price amid a difficult market environment favorably. Nevertheless, we forecast it will generate roughly break-even FOCF in 2024, primarily because it will realize cost savings and lower integration and other non-recurring project expenses, but will be partially offset by higher interest expense from the incremental debt. We do not expect Confluence's FOCF to turn positive until 2025, which will render it vulnerable to worsening macroeconomic conditions or unexpected operating challenges. "Positive industry trends, along with the company's subscription-based revenue, high customer retention rates, and long-dated debt maturity profile, support the current rating. We believe the demand to outsource noncore investment management functions to cloud-based third-party software providers will continue to support the industry's expansion. New regulations, such as the tailored shareholder reporting mandate, provide Confluence with opportunities to generate revenue by developing related solutions for asset managers/servicers. The company's revenue is largely subscription-based and its well-embedded products entail high switching costs for its customers. We also expect Confluence's focus on cross-selling opportunities and pricing, including embedding consumer price index (CPI)-linked increases in more of its contracts, will support rising revenue in 2023 and 2024. Other than its revolver, which expires in 2026, the company does not face any debt maturities until its first-lien term loans mature in 2028. This will give it time to weather its short-term performance issues and improve its cash flow well before it needs to refinance its debt. "The negative outlook reflects the potential we will lower our ratings if Confluence underperforms our forecast and we believe it will generate sustained FOCF deficits." ESG credit indicators: E-2, S-2, G-3 CONSOLIDATED COMMS: MetWest FRI Marks $1.2M Loan at 20% Off ----------------------------------------------------------- Metropolitan West Fund's Floating Rate Income Fund has marked its $1,250,000 loan extended to Consolidated Communications, Inc to market at $999,531 or 80% of the outstanding amount, as of March 31, 2023, according to a disclosure contained in MetWest Fund's Form N-CSR for the Fiscal year ended March 31, 2023, filed with the Securities and Exchange Commission. Floating Rate Income Fund is a participant in a First Lien Term Loan B1 (LIBOR plus 3.50%) to Consolidated Communications, Inc. The loan accrues interest at a rate of 8.38% per annum. The loan matures on October 2, 2027. The Metropolitan West Funds is an open-end management investment company organized as a Delaware statutory trust on December 9, 1996 and registered under the Investment Company Act of 1940, as amended. Metropolitan West Asset Management, LLC, a federally registered investment adviser, provides the Funds with investment management services. The Trust currently consists of 14 separate portfolios. Consolidated Communications, Inc. is a broadband and business communications provider offering a wide range of communications solutions to consumer, commercial and carrier customers across a 23-state service area and an advanced fiber network spanning more than 45,000 fiber route miles. The company maintains headquarters in Mattoon, Ill. CONSUMER ACTION: Case Summary & 10 Unsecured Creditors ------------------------------------------------------ Debtor: Consumer Action Law Group of Panzarella & Associates, P.C. DBA Consumer Action Law Group DBA CAL Group 3700 Eagle Rock Blvd Los Angeles, CA 90065 Business Description: The Debtor is a law firm dedicated to helping individuals in consumer-related matters. Chapter 11 Petition Date: June 23, 2023 Court: United States Bankruptcy Court Central District of California Case No.: 23-13906 Judge: Hon. Julia W. Brand Debtor's Counsel: Andy C. Warshaw, Esq. FINANCIAL RELIEF LAW CENTER, APC 1200 Main St. Ste C Irvine, CA 92614 Tel: 714-442-3319 Fax: 714-361-5380 Email: awarshaw@bwlawcenter.com Total Assets: $302,675 Total Liabilities: $1,192,432 The petition was signed by Charles Panzarella as president. A full-text copy of the petition containing, among other items, a list of the Debtor's 10 unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/CHBIDAY/Consumer_Action_Law_Group_of_Panzarella__cacbke-23-13906__0001.0.pdf?mcid=tGE4TAMA CONTOUR PROPCO: Seeks to Hire Sternshein as Regulatory Counsel -------------------------------------------------------------- Contour Opco 1735 S Mission LLC and Contour Propco 1735 S Mission LLC seek approval from the U.S. Bankruptcy Court for the District of Nevada to hire Sternshein Legal Group, LLC as their regulatory counsel. The Debtor intends to close its residential care facility for the elderly known as Estancia Senior Living, located at 1735 South Mission Road, Fallbrook, CA 92028. Closure of the Care Facility will require compliance with applicable non-bankruptcy law, pursuant to 28 U.S.C. Sec. 959. The firm's legal advice and representation shall concern the creation of a depopulation and closure plan for the Care Facility. The firm will bill these hourly rates: Attorneys $425 - $725 Paraprofessionals $85 - $250 The firm received a retainer in the amount of $7,500. As disclosed in the court filings, Sternshein is a "disinterested person" as defined in 11 USC 101(14). The firm can be reached through: Jennifer M. Sternshein, Esq. Sternshein Legal Group, LLC 5316 East Chapman Avenue Orange, CA 92869-4236 Tel: 714-242-3450 Email: jennifer@srshhealthlaw.com About Contour Propco 1735 S Mission Contour Opco 1735 S Mission LLC and Contour Propco 1735 S Mission LLC filed their petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Nev. Case Nos. 23-12082 and 23-12083, respectively) on May 23, 2023. The petition were signed by David Daneshforooz as chief executive officer. The Debtors estimated $10 million to $50 million in both assets and liabilities. Judge Mike K. Nakagawa oversees the cases. Samuel A. Schwartz, Esq. at SCHWARTZ LAW, PLLC represents the Debtors as counsel. CONTOUR PROPCO: Taps Nicholas Rubin of Force 10 Partners as CRO --------------------------------------------------------------- Contour Opco 1735 S Mission LLC and Contour Propco 1735 S Mission LLC seek approval from the U.S. Bankruptcy Court for the District of Nevada to hire Force 10 Partners and designate Nicholas Rubin as its chief restructuring officer. The firm will render these services: a. manage the affairs of the Debtor, supervise the Debtor's professionals, and provide periodic reports to the Board of Managers of Debtor; b. assist legal counsel and the Debtor in executing the Debtor's restructuring efforts; c. supervise the engagement of the Debtor's investment banker or broker, if any; d. seek to maximize the value of the Debtor's assets and operations through, one or more of the following: seeking financing, seeking the sale of the Debtor or its assets, seeking to refinance existing indebtedness, seeking a recapitalization, and seeking a restructuring or reorganizing of the Debtor's business, in whole or in part; e. assist in connection with motions, responses, or other court activity as directed by legal counsel; f. prepare periodic reporting to stakeholders, the Court, and the Office of the United States Trustee; g. prepare or supervise the preparation of cash budgets, Monthly Operating Reports, variance reports, schedules of assets and liabilities, statements of financial affairs, and any other necessary financial analysis or reporting; h. evaluate and develop restructuring plans and other strategic alternatives for maximizing the value of Debtor and its assets. The CRO, in coordination with the Debtor's other professionals, shall recommend to the Board various plans and strategic alternatives from time to time, and upon receipt of Board approval of a proposed course of action, the CRO shall use commercially reasonable efforts to attempt to implement such course of action, subject, as applicable, approval of any court of competent jurisdiction; i. assist in the formulation and preparation of the Debtor's disclosure statement and plan of reorganization, if applicable, including working with the Debtor's professionals and advisors in the creation of financial projections and supporting methodology, key assumptions and rationale, appropriate financial analysis, evaluation of the Debtor's operations, supporting financial statements, and proforma budgets and projections; j. assist in negotiations with the Debtor's creditors and in developing the response to any objections from parties in interest to the bankruptcy plan or other courses of action undertaken by the Debtor; and k. prepare and offer declarations, reports, depositions, and testimony. The firm requires a retainer in the amount of $75,000. The firm will be paid at these hourly rates: Partners $695 - $950 Managing Directors $495 - $650 Directors $425 - $500 Analysts $225 - $400 Force 10 Partners will also be reimbursed for reasonable out-of-pocket expenses incurred. Nicholas Rubin, a partner of Force 10 Partners LLC, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. The firm can be reached through: Nicholas Rubin Force Ten Partners, LLC 5271 California, Suite 270 Irvine, California 92617 Phone: (949) 357-2360 Force10partners.com Email: nrubin@force10partners.com About Contour Propco 1735 S Mission Contour Opco 1735 S Mission LLC and Contour Propco 1735 S Mission LLC filed their petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Nev. Case Nos. 23-12082 and 23-12083, respectively) on May 23, 2023. The petition were signed by David Daneshforooz as chief executive officer. The Debtors estimated $10 million to $50 million in both assets and liabilities. Judge Mike K. Nakagawa oversees the cases. Samuel A. Schwartz, Esq. at SCHWARTZ LAW, PLLC represents the Debtors as counsel. CORE SCIENTIFIC: Unsecureds Will Get 100% of Claims in Plan ----------------------------------------------------------- Core Scientific, Inc. and its affiliates filed with the U.S. Bankruptcy Court for the Southern District of Texas a Disclosure Statement for Joint Chapter 11 Plan dated June 20, 2023. Headquartered in Austin, Texas, the Debtors are one of the largest blockchain infrastructure, hosting provider, and digital asset mining companies in North America, with approximately 814MW of capacity across eight operational data centers in Texas (2), Georgia (2), Kentucky, North Carolina (2), and North Dakota (the "Data Centers"). The Debtors mine digital assets (also known as cryptocurrency), primarily bitcoin, for their own account ("Self-Mining") and host Miners for third-party customers ("Hosting Operations"). Since inception, the Debtors have built a considerable asset base, gained market trust as a premier hosting provider, and demonstrated a multi-year track record of successful management of their businesses. The Plan provides for a comprehensive restructuring of the Debtors' balance sheet pursuant to which holders of Claims and Interests will receive either (i) equity in Core Scientific, Inc. (after the Effective Date, the "Reorganized Parent"), (ii) debt (take-back debt) in a Debtor (on and after the Effective Date, collectively, the "Reorganized Debtors"), (iii) a combination of equity and take-back debt, or (iv) reinstatement of claims. Specifically, the proposed restructuring contemplates, among other things: * 100% recoveries to all Classes of creditors in the form of (i) equity in the Reorganized Parent ("New Common Interests"), (ii) take-back debt, (iii) a combination of equity and take-back debt, or (iv) reinstatement of claims. * Distributions to existing equity holders, in the form of New Common Interests; of all residual value remaining after the payment of Claims. * A reduction of current debt on the Debtors' balance sheet by approximately $[] and a reduction in the Debtors' annual debt service. * The assumption of most Executory Contracts and Unexpired Leases of the Debtors. In addition, in connection with the potential need to raise new capital to fund the Debtors' exit from chapter 11 and ongoing operations post-emergence, on June 9, 2023 the Debtors and their advisors commenced a marketing process to raise capital and have reached out to a number of parties within and outside the Debtors' capital structure regarding a potential capital raise. Whether the Debtors will ultimately need to raise any new capital, the amount of such new capital, and whether in the form of equity, debt, or hybrid capital may depend on a number of factors, including, whether the Plan is consensual. If the Debtors elect to raise any new capital in connection with the Plan, the Debtors will disclose the terms of such new capital raise in the Plan Supplement and make any necessary amendments to the Plan. Class 8 General Unsecured Claims. Except to the extent that a Holder of an Allowed General Unsecured Claim (i) agrees to a less favorable treatment of such Claim or (ii) in the event that both Class 1 and Class 2 are Accepting Classes, timely elects the GUC Treatment Election on or before the Voting Deadline, each such Holder shall receive, in full and final satisfaction, settlement, release, and discharge of such Claim, on the Effective Date, or as soon as reasonably practicable thereafter, New Common Interests with a value, based on Plan Value, equal to 100% of such Holder's Allowed General Unsecured Claim. The allowed unsecured claims total $85-105 million. This Class will receive a distribution of 100% of their allowed claims. Each Holder of an Allowed General Unsecured Claim may elect on its Ballot to receive on the Effective Date, or as soon as reasonably practicable thereafter, in lieu of the Default GUC Treatment, in full and final satisfaction, settlement, release, and discharge of such Claim, such Holder's Pro Rata Share of the New GUC Takeback Notes; provided, however, that Holders electing the GUC Treatment Election shall be deemed to have agreed to reduce such Holder's General Unsecured Claim to 75% of its Allowed General Unsecured Claim. Furthermore, if Holders holding, in the aggregate, more than $100,000,000 in Confirmation Date GUC Claims elect the GUC Treatment Election, each Holder electing the GUC Treatment Election shall have its General Unsecured Claim, prior to determination of the Reduced GUC Claim Amount, bifurcated into (i) an amount equal to its Allowed General Unsecured Claim or Disputed General Unsecured Claim times the quotient of $100 million and the total Confirmation Date GUC Claims and (ii) the rest of its Allowed General Unsecured Claim or Disputed General Unsecured Claim, and shall receive in full and final satisfaction, settlement, release, and discharge of such holder’s Allowed General Unsecured Claim, on the Effective Date or as soon as reasonably practicable thereafter. Class 12 consists of Existing Common Interests. Except to the extent that a Holder of an Allowed Existing Common Interest agrees to a less favorable treatment of such Interest, each such Holder shall receive, in full and final satisfaction, settlement, release, and discharge of such Interest, on the Effective Date, or as soon as reasonably practicable thereafter, such Holder's Pro Rata Share (taking into account Allowed Claims in Classes 11 and 12 and valuing the Allowed Interests in Class 12 as equal to 100% of the value of the New Common Interests in the Residual Equity Pool) of the Residual Equity Pool. The Debtors are in the process of seeking new money capital to fund potential cash needs, including, but not limited to, potentially paying down the balance of the Replacement DIP Facility and to fund any liquidity needs that may arise post emergence, based upon the Business Plan. The PJT team has drafted marketing materials, populated a virtual dataroom, and identified potential outreach parties in connection with the exit financing capital raise. PJT and the Debtors have worked together to identify a list of more than 47 potential outreach parties, comprised of (i) parties inside the Debtors' capital structure, (ii) parties previously interested in investing in the Debtors, (iii) hedge funds, (iv) private equity / venture capital firms, and (v) strategic parties. The Debtors are in active dialogue with potential capital providers, including those that currently hold Claims against or Interests in the Debtors, those that have previously expressed an interest in investing in the Debtors, and new potential third-party investors. A full-text copy of the Disclosure Statement dated June 20, 2023 is available at https://urlcurt.com/u?l=chd87v from Stretto, the claims agent. Weil can be reached through: Ray C. Schrock, Esq. Ronit J. Berkovich, Esq. Weil, Gotshal & Manges LLP Ray C. Schrock, P.C. 767 Fifth Avenue New York, NY 10153 Telephone: (212) 310-8000 Email: ray.schrock@weil.com WEIL, GOTSHAL & MANGES LLP Alfredo R. Perez, Esq. Clifford Carlson, Esq. 700 Louisiana Street, Suite 1700 Houston, Texas 77002 Telephone: (713) 546-5000 Facsimile: (713) 224-9511 About Core Scientific Core Scientific, Inc. (OTCMKTS: CORZQ) is the largest U.S. publicly-traded Bitcoin mining company in computing power. Core Scientific, which was formed following a business combination in July 2021 with blank check company XPDI, is a large-scale operator of dedicated, purpose-built facilities for digital asset mining colocation services and a provider of blockchain infrastructure, software solutions and services. Core mines Bitcoin, Ethereum and other digital assets for third-party hosting customers and for its own account at its six fully operational data centers in North Carolina (2), Georgia (2), North Dakota (1) and Kentucky (1). Core was formed following a business combination in July 2021 with XPDI, a blank check company. In July 2022, one of the Company's largest customers, Celsius Mining LLC, filed for Chapter 11 bankruptcy in New York. With low Bitcoin prices depressing mining revenue to a record low, Core Scientific first warned in October 2022 that it may have to file for bankruptcy if the company can't find more funding to repay its debt that amounts to over $1 billion. Core Scientific did not make payments that came due in late October and early November 2022 with respect to several of its equipment and other financings, including its two bridge promissory notes. Core Scientific and its affiliates filed petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Texas Lead Case No. 22-90341) on Dec. 21, 2022. As of Sept. 30, 2022, Core Scientific had total assets of US$1.4 billion and total liabilities of US$1.3 billion. Judge David R. Jones oversees the cases. The Debtors hired Weil, Gotshal & Manges, LLP as legal counsel; PJT artners, LP as investment banker; and AlixPartners, LLP as financial advisor. Stretto is the claims agent. A group of Core Scientific convertible bondholders is working with restructuring lawyers at Paul Hastings. Meanwhile, B. Riley Commercial Capital, LLC, as administrative agent under the Replacement DIP facility, is represented by Choate, Hall & Stewart, LLP. On Jan. 9, 2023, the U.S. Trustee for Region 7 appointed an official committee to represent unsecured creditors in the Debtors' Chapter 11 cases. The committee tapped Willkie Farr & Gallagher, LLP as legal counsel and Ducera Partners, LLC as investment banker. The U.S. Trustee for Region 7 appointed an official committee of equity security holders. The equity committee is represented by Vinson & Elkins, LLP. COVETRUS INC: S&P Affirms 'B-' ICR, Outlook Stable -------------------------------------------------- S&P Global Ratings affirmed its 'B-' issuer credit rating on Portland, Maine-based animal health distributor Covetrus Inc. The 'B-' issue-level rating and '3' recovery rating on the company's first-lien credit facility remain unchanged. S&P said, "The stable outlook reflects our expectation that despite a projected cash flow deficit in 2023, Covetrus will continue to grow revenue in the low- to mid-single-digit percent range over the next 12 months and expand S&P Global Ratings-adjusted EBITDA margins to about 5.0% as it implements cost cutting measures and restructuring costs taper off. It also reflects our expectation that temporarily larger working capital outflows will be managed by the company's current liquidity position. "The stable outlook reflects our expectation that Covetrus will generate a smaller free cash flow deficit in 2023 than it did in 2022 as it improves its working capital management and implements cost efficiencies. The company experienced significant working capital outflows in 2022, primarily attributable to a second-half spike in inventory purchases and accounts payable processing and terms as the company ramped up following the take-private transaction in October. We expect these outflows to continue into the first half of 2023. Additionally, the burden of rising interest expense leaves little cushion for underperformance in terms of free cash flow generation. We estimate Covetrus will generate a reported free operating cash flow (FOCF) deficit of approximately $40 million for 2023, turning positive in 2024, with expected FOCF generation of $10 million-$20 million. "We expect the company's management to demonstrate strong execution on working capital improvements as well as cost savings initiatives, including indirect spend, logistics, and pricing. We also expect a disciplined financial policy approach when considering debt-funded mergers and acquisitions. "We believe the company's liquidity position will remain adequate over the next 12 months despite the forecasted free cash flow deficit. A larger or prolonged free cash flow deficit could erode the company's liquidity position. Covetrus had a cash balance of approximately $125 million as of Dec. 31, 2022, as well as full availability under its $300 million revolving credit facility. We expect the company to use its liquidity to support its debt service and operations over the near term until cash flow generation turns positive. If the company experiences a deeper cash flow deficit than expected as a result of working capital outflows, or compression of margins related to macroeconomic effects (such as inflationary pressures or reduced demand) that would affect pricing of purchased supplies and challenges passing these costs on to individual clinics, we anticipate its liquidity position would weaken. "We expect Covetrus' revenue to grow in the low- to mid-single-digit percent range as volume across the veterinary industry begins to normalize following the pandemic pet adoption boom. We expect the company's animal health distribution business unit to grow in the low-single-digit percent area in 2023 and 2024, driven by price increases and general tailwinds across the veterinarian industry related to increased pet ownership, increased humanization of pets, and improved longevity related to continued investment in medication and vaccines. This will be partially offset by a slight decline in patient volumes across the veterinarian industry as normalization takes hold following the high growth seen in 2020 and 2021. We expect the company's pharmacy management business unit to grow in the mid-teen percent area as the company continues to onboard more veterinarian clinics onto their pharmacy system and these clinics look to keep revenue in-house for pharmaceutical and diet products. With only a small portion of the company's distribution customers currently utilizing the company's additional services, including pharmacy management and practice management software, we expect the company to successfully grow its global prescription management and global software services business units." Execution risks could result in delays in containing working capital and growth initiatives. A majority of the company's management team is new, having joined the company at the time of its leveraged buyout transaction in October 2022. As the company looks to pursue growth initiatives through increased focus on cross-selling to veterinary clinics though growth in its global prescription management and global software services business units and better manage working capital following a meaningful expansion in inventory and receivables in 2022, execution risks could delay realization of these initiatives and cause the company's cash flows to remain pressured for a prolonged period. S&P said, "The stable outlook reflects our expectation that despite a projected cash flow deficit in 2023, Covetrus will continue to grow revenue in the low- to mid-single-digit percent range over the next 12 months and expand its S&P Global Ratings-adjusted EBITDA margins to about 5.0% as cost cutting measures are implemented and restructuring costs taper off. It also reflects our expectation that temporarily higher working capital outflows will be sustained by the company's current liquidity position." S&P could lower the rating if: -- The company faces operational and execution challenges such that it experiences volume softness and margin compression that results in acute cash flow deficits in 2023; or -- S&P expects negative free cash flows to persist for a prolonged period such that the company's liquidity position deteriorates. An upgrade is unlikely over the next 12 months. S&P could raise the rating if it expects the company to sustain S&P Global Ratings-adjusted free cash flow to debt at 3%-4% and leverage at 5x-6x. 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 Covetrus. Our highly leveraged assessment of the company's financial risk profile reflects its corporate decision-making that prioritizes the interests of its controlling owners, which is in line with our view of the majority of rated entities owned by private-equity sponsors. Our assessment also reflects private-equity sponsors' generally finite holding periods and focus on maximizing shareholder returns." CSC 1 LLC: Court OKs Interim Cash Collateral Access --------------------------------------------------- CSC 1 LLC sought and obtained entry of an order from the U.S. Bankruptcy Court for the Southern District of New York authorizing the use of cash collateral on an interim basis in accordance with the budget, pending a final hearing set for July 10, 2023 at 10 a.m. The Debtor seeks authority to utilize the revenues it collects to fund its ongoing operations and to enable it to reorganize. The New York State Department of Taxation and Finance has filed two warrants relating to the Debtor for a total of approximately $105,000. In addition, the Debtor has assumed DTF debt of approximately $166,331, from its related entity in exchange for its catering business and certain other assets. The Debtor acquired a desirable lease for space from 99-105 Third Avenue Really, LLC. The base rent is $14,500. The Debtor is behind approximately five months on its lease obligations and intends during the bankruptcy to make lease payments timely. The Debtor intends on assuming the lease and curing any amounts that are owed within the lime frame allowed by the Bankruptcy Code. The Debtor disputes that it has any other liability for secured debt; however, there are two UCC-ls on file in New York State, one of which is for Mission Valley Bank and the other is unknown since the service company filed it without identifying the creditor. The Debtor will pay its operating expenses and any additional proceeds will be utilized as a reserve. The use affirmatively and directly benefits the estate and the Debtor's creditors by enhancing the prospect of a successful outcome of the Case. The Budget provides for expenditures to fund the Debtor's necessary and essential day-to-day operations. The expenditures include payments required to maintain the lease, insurance and utilities, thereby protecting the DTF's lien by allowing the Debtor to continue its business. Thereby, the Lender is not incurring costs while the Restaurant reorganizes or is marketed for sale. The use of the cash collateral consistent with the Budget will maintain the overall value of the Debtor as an ongoing enterprise and enhance the chances of a successful outcome for the case. Further the Debtor has good prospects of restructuring. As adequate protection for the Debtor's use of the DTF's collateral and in consideration for the use of the Collateral, the DTF is granted replacement liens in all of the Debtor's pre-petition and post-petition assets and proceeds, only to the extent the DTF has a valid security interest in the pre-petition assets on the Petition Date and in the continuing order of priority that existed as of the Petition Date. The Replacement Liens will be subject and subordinate only to: (a) United States Trustee fees payable under 28 U.S.C. section 1930 and 31 U.S.C. section 3717; (b) professional fees of duly retained professionals in the Chapter 11 case as may be awarded pursuant to Sections 330 or 331 of the Bankruptcy Code or pursuant to any monthly fee order entered in the Debtor's Chapter 11 case; (c) the fees and expenses of a hypothetical Chapter 7 trustee to the extent of $10,000; and (d) the recovery of funds or proceeds from the successful prosecution of avoidance actions pursuant to section 502(d), 544,545, 548, 549, 550 or 553 of the Bankruptcy Code. A copy of the motion is available at https://urlcurt.com/u?l=x4O1yp from PacerMonitor.com. A copy of the order is available at https://urlcurt.com/u?l=57gZcu from PacerMonitor.com. About CSC 1 LLC CSC 1 LLC is a New York Limited Liability Company which operates a retail sandwich deli located at 99-103 Third Avenue, New York, NY, serving drug free meats, nitrate-free north country smokehouse bacon, cage-free brown eggs, and Balthazar croissants. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 23-10943) on June 16, 2023. In the petition signed by Richard D. Zaro, manager of owner, the Debtor disclosed up to $500,000 in both assets and liabilities. Judge Lisa G. Beckerman oversees the case. H Bruce Bronson, Esq., at Bronson Law Office, P.C., represents the Debtor as legal counsel. CSR WORLDWIDE: Seeks to Hire Brown Law Firm as Bankruptcy Counsel ----------------------------------------------------------------- CSR Worldwide, Inc. seeks approval from the U.S. Bankruptcy Court for the Eastern District of Oklahoma to hire Brown Law Firm, P.C. as its counsel. The firm's services include: a. negotiating allowed claims and treatment of creditors; b. rendering legal advice and preparing legal documents and pleadings concerning claims of creditors, post-petition financing, executing contracts, sale of assets, and insurance; c. representing the Debtor at court hearings and other contested matters; d. formulating a disclosure statement and plan of reorganization; and e. all other matters needed for reorganization. Brown Law Firm will be paid at these rates: Ron D. Brown, Esq. $350 per hour Associate $250 per hour Paralegal $75 per hour The firm received from the Debtor an advance retainer of $15,000. Ron Brown, Esq., at Brown Law Firm, disclosed in a court filing that all members of his firm are "disinterested" within the meaning of Section 101(14) of the Bankruptcy Code. The firm can be reached through: Ron D. Brown, Esq. R. Gavin Fouts, Esq. Brown Law Firm, P.C. 715 S. Elgin Ave Tulsa, OK 74120 Tel: (918) 585-9500 Fax: (866) 552-4874 Email: ron@ronbrownlaw.com gavin@ronbrownlaw.com About CSR Worldwide OK CSR Worldwide OK, Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Okla. Case No. 23-80391) on June 6, 2023. In the petition signed by CEO Troy Don Burgess, the Debtor disclosed $7,099,094 in assets and $7,130,915 in liabilities. Ron Brown, Esq. and R. Gavin Fouts, Esq., at Brown Law Firm PC, represents the Debtor as legal counsel. CSR-OK REAL ESTATE: Hires Brown Law Firm as Bankruptcy Counsel -------------------------------------------------------------- CSR-OK Real Estate Holding Company, LLC seeks approval from the U.S. Bankruptcy Court for the Eastern District of Oklahoma to hire Brown Law Firm, P.C. as its attorney. The firm's services include: a. negotiating allowed claims and treatment of creditors; b. rendering legal advice and preparing legal documents and pleadings concerning claims of creditors, post-petition financing, executing contracts, sale of assets, and insurance; c. representing the Debtor at court hearings and other contested matters; d. formulating a disclosure statement and plan of reorganization; and e. all other matters needed for reorganization. Brown Law Firm will be paid at these rates: Ron D. Brown, Esq. $350 per hour Associate $250 per hour Paralegal $75 per hour The firm received from the Debtor an advance retainer of $15,000. Ron Brown, Esq., at Brown Law Firm, disclosed in a court filing that all members of his firm are "disinterested" within the meaning of Section 101(14) of the Bankruptcy Code. The firm can be reached through: Ron D. Brown, Esq. R. Gavin Fouts, Esq. Brown Law Firm, P.C. 715 S. Elgin Ave Tulsa, OK 74120 Tel: (918) 585-9500 Fax: (866) 552-4874 Email: ron@ronbrownlaw.com gavin@ronbrownlaw.com About CSR-OK Real Estate CSR-OK Real Estate Holding Company owns real estate located at 473617 E 610 Rd Watts, Oklahoma valued at $3.7 million. CSR-OK Real Estate Holding Company, LLC filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Okla. Case No. 23-80390) on June 6, 2023. The petition was signed by Troy Don Burgess as chief executive officer. At the time of filing, the Debtor estimated $9,517,036 in assets and $12,767,298 in liabilities. Ron Brown, Esq. and R. Gavin Fouts, Esq. at BROWN LAW FIRM PC represent the Debtor as counsel. CYXTERA DC: MetWest FRI Marks $497,000 Loan at 18% Off ------------------------------------------------------ Metropolitan West Fund's Floating Rate Income Fund has marked its $497,361 loan extended to Cyxtera DC Holdings, Inc to market at $406,802 or 82% of the outstanding amount, as of March 31, 2023, according to a disclosure contained in MetWest Fund's Form N-CSR for the Fiscal year ended March 31, 2023, filed with the Securities and Exchange Commission. Floating Rate Income Fund is a participant in a First Lien Term Loan (LIBOR plus 3%) to Cyxtera DC Holdings, Inc. The loan accrues interest at a rate of 5.07% per annum. The loan matures on MaY 1, 2024. The Metropolitan West Funds is an open-end management investment company organized as a Delaware statutory trust on December 9, 1996 and registered under the Investment Company Act of 1940, as amended. Metropolitan West Asset Management, LLC, a federally registered investment adviser, provides the Funds with investment management services. The Trust currently consists of 14 separate portfolios. Cyxtera DC Holdings, Inc. provides data center services. DAWN ACQUISITION: MetWest FRI Marks $256,022 Loan at 41% Off ------------------------------------------------------------ Metropolitan West Fund's Floating Rate Income Fund has marked its $256,022 loan extended to Dawn Acquisition LLC to market at $150,029 or 59% of the outstanding amount, as of March 31, 2023, according to a disclosure contained in MetWest Fund's Form N-CSR for the Fiscal year ended March 31, 2023, filed with the Securities and Exchange Commission. Floating Rate Income Fund is a participant in a First Lien Term Loan B (LIBOR plus 3.75%) to Dawn Acquisition LLC. The loan accrues interest at a rate of 8.48% per annum. The loan matures on December 31, 2025. The Metropolitan West Funds is an open-end management investment company organized as a Delaware statutory trust on December 9, 1996 and registered under the Investment Company Act of 1940, as amended. Metropolitan West Asset Management, LLC, a federally registered investment adviser, provides the Funds with investment management services. The Trust currently consists of 14 separate portfolios. Dawn Acquisitions LLC, doing business as Evoque Data Center Solutions, provides digital infrastructure and data center solutions. The Company offers multi-generational infrastructure, colocation, connectivity, build-to-suit, and cloud engineering solutions. DEALER PRODUCTS: Court Okays Appointment of Chapter 11 Trustee -------------------------------------------------------------- Judge Edward Morris of the U.S. Bankruptcy Court for the Northern District of Texas approved the appointment of Anne Burns as Chapter 11 trustee for Dealer Products, Inc. The appointment comes upon the application filed by William Neary, the U.S. Trustee for Region 6, to appoint a bankruptcy trustee in Dealer Products' Chapter 11 case. Ms. Burns disclosed in a court filing that she is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. A copy of the appointment order is available for free at https://urlcurt.com/u?l=kQbl1L from PacerMonitor.com. About Dealer Products Dealer Products, Inc. -- https://www.dealpro.com -- is a distributor of motor vehicle supplies and accessories in Texas. Dealer Products sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Texas Case No. 22-41970) on Aug. 29, 2022, with between $1 million and $10 million in both assets and liabilities. Susan H. Fischer, vice president, signed the petition. Judge Edward L. Morris oversees the case. The Debtor tapped M. Jermaine Watson, Esq., at Cantey Hanger, LLP as legal counsel and Seaton Hill Partners, LP as financial advisor. DESTINED PROPERTIES: Seeks to Tap D&B as Real Estate Listing Agent ------------------------------------------------------------------ Destined Properties, LLC seeks approval from the U.S. Bankruptcy Court for the District of Utah to employ D&B Real Estate as real estate listing agent. The Debtor requires an agent to assist in the listing and selling of its real property. D&B will receive a 6 percent commission if the property is sold during the listing period, to be split equally between the firm and the buyer's agent in the event the successful buyer employs an agent. Rick Lunt, owner and broker at D&B, disclosed in a court filing that the firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Rick Lunt D&B Real Estate 1883 W Royal Hunte Dr., Suite 202 Cedar City, UT 84720 Telephone: (435) 559-1520 Facsimile: (435) 867-8600 Email: rick@dbrealestate.biz About Destined Properties Destined Properties, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Utah Case No. 23-22264) on May 31, 2023. In the petition signed by James L. Haslem, authorized representative, the Debtor disclosed $1 million to $10 million in both assets and liabilities. Judge William T. Thurman oversees the case. Jeremy C. Sink, Esq., at Kirton McConkie, represents the Debtor as legal counsel. DGS REALTY: Court OKs Cash Collateral Access Thru Aug 31 -------------------------------------------------------- The U.S. Bankruptcy Court for the District of New Hampshire authorized DGS Realty, LLC to use the cash collateral of PHH Mortgage Services, acting as servicer for U.S. Bank National Trust Association, as Trustee for Lehman Brothers Small Balance Commercial Mortgage Pass Through Certificates, Series 2006-3. The Debtor is permitted to use and expend the proceeds of cash collateral to pay the costs and expenses incurred in the ordinary course of its business during the period from July 1 through August 31, 2023, or the date on which the Court enters an order revoking the Debtor's right to use cash collateral in accordance with the budget. The Court said PHH Mortgage is allowed a post-petition replacement lien in all property in which PHH Mortgage held a validly perfected lien and not avoidable lien and security interest as of the Petition Date, in addition to any lien held by PHH Mortgage on rents and other proceeds that is extended by operation of law pursuant to 11 U.S.C. Section 522(b). The Replacement Liens will maintain the same priority, validity and enforceability as such pre-petition liens on the cash collateral, but will be recognized only to the extent of any diminution in the value of the property securing PHH Mortgage's claim resulting from the use of cash collateral pursuant to the Order. The Debtor will pay PHH Mortgage a monthly payment of $6,750, plus real estate tax escrow in the amount of $3,066, each month, pending further Court order. The Debtor will pay the U.S. Small Business Administration a monthly payment of $376, pending further Court order. Absent the Court's entry of a further order extending authorization, the Debtor's access to use cash collateral will terminate upon the earliest of: a. the last day of the Use Period; b. the earliest date on which a final hearing on cash collateral requirements can be held under the notice and service requirements of Bankruptcy Rules 4001(b) and (d) and 7004(h); c. appointment of a Trustee pursuant to Bankruptcy Code Section 1104; d. conversion of the Debtor's case to one under Chapter 7 of the Bankruptcy Code; e. dismissal of the Debtor's case; or f. entry of an order granting a Motion for Relief from Automatic Stay with respect to any property that is PHH Mortgage's collateral. A hearing on the Debtor's further use of cash collateral is scheduled for August 16 at 11 a.m. A full-text copy of the Court's order and the Debtor's budget for the period from July to August 31, 2023, is available at https://urlcurt.com/u?l=4JUm0n from PacerMonitor.com. The Debtor projects $99,378 in total income and $10,192 in total expenses for July 2023 and $99,563 in total income and $10,191 in total expenses for August 2023. About DGS Realty Based in Concord, New Hampshire, DGS Realty, LLC, is a real estate limited liability company. Formed around May 10, 2017, the company is owned by David H. Booth, Manager, Stephen W. Booth, and Gregory A. Booth, each having a 1/3 interest. DGS Realty filed a Chapter 11 petition (Bankr. D.N.H. Case No. 22-10028) on January 24, 2022. In the petition signed by David H. Booth, the manager, the Debtor estimated assets and debts between $1 million and $10 million. Judge Bruce A. Harwood oversees the case. Representing the Debtor as counsel is Eleanor Wm Dahar, Esq., at Victor W. Dahar Professional Association. DHUD INVESTMENTS: Gregory Jones Named Subchapter V Trustee ---------------------------------------------------------- The U.S. Trustee for Region 16 appointed Gregory Jones as Subchapter V trustee for DHUD Investments, A CA Corporation. Mr. Jones 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. Jones declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Gregory Jones 10100 N. Santa Monica Blvd., Suite 1400 Los Angeles, CA 90067 Telephone: 424-214-7044 Email: GJones@SYCR.COM About DHUD Investments DHUD Investments, A CA Corporation filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. C.D. Calif. Case No. 23-13542) on June 8, 2023, with $500,001 to $1 million in both assets and liabilities. Judge Vincent P. Zurzolo oversees the case. The Debtor is represented by Ilbert Phillips, Esq., at the Law Offices of Ilbert Phillips. DIAMOND SPORTS: 94% Markdown for MetWest FRI's $166,900 Loan ------------------------------------------------------------ Metropolitan West Fund's Floating Rate Income Fund has marked its $166,993 loan extended to Diamond Sports Group, LLC to market at $9,567 or 6% of the outstanding amount, as of March 31, 2023, according to a disclosure contained in MetWest Fund’s Form N-CSR for the Fiscal year ended March 31, 2023, filed with the Securities and Exchange Commission. Floating Rate Income Fund is a participant in a Second Lien Term Loan (SOFR plus 3.40%) to Diamond Sports Group, LLC. The loan accrues interest at a rate of 8.03% per annum. The loan matures on August 24, 2026. The Metropolitan West Funds is an open-end management investment company organized as a Delaware statutory trust on December 9, 1996 and registered under the Investment Company Act of 1940, as amended. Metropolitan West Asset Management, LLC, a federally registered investment adviser, provides the Funds with investment management services. The Trust currently consists of 14 separate portfolios. Diamond Sports Group, LLC operates as a sports marketing company. The Company offers seminars, combine, speed and agility assessments, recruiting tools, and online training sessions for sports including football, baseball, soccer, and basketball. DMCC 450: Lender Seeks to Prohibit Cash Collateral Access --------------------------------------------------------- Axiom Bank, N.A. asks the U.S. Bankruptcy Court for the Middle District of Florida, Orlando Division, for entry of an order prohibiting DMCC 450 Charles Court, LLC from using cash collateral. Axiom holds a first priority blanket security interest in substantially all of the Debtor's real and personal property. Axiom does not consent to the Debtor's use of cash collateral. Axion contends any use of cash collateral should be conditioned upon, among other things: (i) the Debtor adequately protecting Axiom's interest; (ii) sequestering and accounting for the cash collateral on hand as of the petition date and subsequently generated during this bankruptcy case; (iii) providing a budget to Axiom and this Court with respect to any proposed use of Axiom's cash collateral; (iv) providing the proof of insurance, and any such other operating reports, statements, bank statements, financial statements, credit card statements, certifications and other information, together with such additional information as may from time to time hereafter reasonably request in accordance with its loan documents with the Debtor; and (v) granting Axiom access to inspect the Premises as required under the Loan Documents. On October 29, 2019, the Debtor executed and delivered to Axiom a Promissory Note in the original principal amount of $525,00 with a maturity date of April 29, 2022. Concurrently with the execution of the Note, the Borrower executed and delivered to Axiom a Mortgage and Security Agreement, which was subsequently recorded in the Official Books and Records of Seminole County, at Book 9469 and Page 1258, Instrument #2019118969. Also concurrently with the execution of the Note and the Mortgage, the Debtor executed a Term Loan Agreement, and an Assignment of Leases and Rents, which was subsequently recorded in the Official Books and Records of Seminole County, at Book 9469 and Page 1285, Instrument #2019118970. Certain guarantors executed an Unconditional and Continuing Guaranty of Payment and Performance. Axiom recoded a UCC Financing Statement for the Real Property and Personal Property securing repayment of the Note in the Official Records of Seminole County, Florida at Book 9469, Page 1291, Instrument# 2019118971. Despite the April 29, 2022 maturity date on the Note, the Borrower failed to repay the principal balance in accordance with the Note's terms. The Debtor's failure to pay the Note in full upon its maturity date constituted an Event of Default under the Loan Documents. Additionally, Axiom became aware of DMCC's additional default under the terms of the Mortgage by permitting an encumbrance on the Real Property without Axiom's prior consent. Moreover, Axiom became aware of the same default by an affiliate of the Borrower, an entity known as DMCC 7347 Ridge Road, LLC, under loan documents also held by Axiom. Specifically, the 7347 Ridge permitted an encumbrance on property owned by the 7437 Ridge in violation of Loan Documents with Axiom. 7347 Ridge also filed its own chapter 11 voluntary petition on the Petition Date. 7347 Ridge's default is a cross-default under the Debtor's Loan Documents, including without limitation, Section 18 of the Note. On January 5, 2023, Axiom delivered to the Debtor a notice of default and demand to cure the default caused by the Encumbrance within 10 days. Axiom also delivered to 7347 Ridge a notice of default and demand to cure the default caused by the 7347 Ridge Encumbrance under the 7347 Ridge Documents. Axiom received no response from the Debtor or 7347 Ridge indicating any action to cure the defaults asserted in the Borrowers' First Default Notice or 7347 Ridge's First Default Notice. Having received no cure of the default, Axiom exercised its right to accelerate the entirety of the unpaid principal balance in the amount of $494,267, and began to apply a default rate of interest as permitted by the Loan Documents. Axiom is the current owner and holder of the Loan Documents. On March 6, 2023, Axiom recorded a Lis Pendens and commenced a foreclosure action against, inter alia, the Debtor, initiating Case No. 2023-CA-000499, Circuit Court of the Ninth Judicial Circuit, in and for Osceola County, Florida. A copy of the motion is available at https://urlcurt.com/u?l=XEDnQ7 from PacerMonitor.com. About DMCC 450 Charles Court DMCC 450 Charles Court LLC filed a petition for relief under Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 23-01977) on May 24, 2023. In the petition filed by Pradeep Matharoo, as president, the Debtor reported assets and liabilities between $1 million and $10 million each. Aaron R. Cohen has been appointed as Subchapter V trustee. The Debtor is represented by Justin M Luna, Esq., at Latham, Luna, Eden & Beaudine, LLP. Axiom Bank, N.A., as lender, is represented by: James Tinko, Esq. SHUTTS & BOWEN LLP 300 S. Orange Avenue, Suite 1000 Orlando, FL 32801 Tel: 407-835-6808 Email: jtimko@shutts.com E QUALCOM: Gets OK to Tap Van Horn Law Group as Bankruptcy Counsel ------------------------------------------------------------------ E Qualcom, Corp. received approval from the U.S. Bankruptcy Court for the Southern District of Florida to employ Van Horn Law Group, PA as its counsel. The firm will render these legal services: (a) advise the Debtor regarding its powers and duties in the continued management of its business operations; (b) advise the Debtor regarding its responsibilities in complying with the U.S. Trustee's Operating Guidelines and Reporting Requirements and with the rules of the court; (c) prepare legal papers; (d) protect the interest of the Debtor in all matters pending before the court; (e) represent the Debtor in negotiation with its creditors in the preparation of a plan. The Debtor paid the firm a total retainer of $25,000. The firm's hourly rates range from $150 to $450 for law clerks, paralegals, and attorneys. In addition, the firm will seek reimbursement for expenses incurred. Chad Van Horn, Esq., an attorney at Van Horn Law Group, disclosed in a court filing that his firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Chad Van Horn, Esq. Van Horn Law Group, PA 500 N.E. 4th Street, Suite 200 Fort Lauderdale, FL 33301 Telephone: (954) 765-3166 Facsimile: (954) 756-7103 Email: Chad@cvhlawgroup.com About E Qualcom Corp. E Qualcom, Corp. filed a petition for relief under Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 22-15957) on Aug. 1, 2022, with $1 million to $10 million in both assets and liabilities. Aleida Martinez-Molina has been appointed as Subchapter V trustee. Judge Peter D. Russin oversees the case. Chad Van Horn, Esq., at Van Horn Law Group, PA represents the Debtor as counsel. E-B DISPLAY: Committee Hires Bernstein-Burkley as Legal Counsel --------------------------------------------------------------- The official committee of unsecured creditors of E-B Display Co. Inc. and its affiliates seek approval from the U.S. Bankruptcy Court for the Northern District of Ohio to hire Bernstein-Burkley, P.C. as its counsel. Bernstein-Burkley will represent and assist the committee in the performance of its duties. The firm will be paid at these hourly rates: Attorneys $235 to $625 Paralegal $175 to $195 As disclosed in the court filings, Bernstein-Burkley is a "disinterested person" within the meaning of sections 101(14) and 327 of the Bankruptcy Code. The firm can be reached through: Harry W. Greenfield, Esq BERNSTEIN-BURKLEY, P.C. 600 Superior Avenue East Fifth Third Building, Suite 1300 Cleveland, OH 44114 Telephone: (800) 693-4013 Facsimile: (412) 456-8135 Email: hgreenfield@bernsteinlaw.com About E-B Display Company E-B Display Company, Inc. develops and manufactures custom displays and fixtures for retail customers, including by carrying out all graphic design, engineering, prototyping, manufacturing, and printing necessary to create such custom displays and fixtures. E-B Display operates in two locations situated in Massillon, Ohio. The real property upon where E-B Display operates its business is owned by Rotolo Industries, Inc. and the locations are operated and managed by E-B Display. On May 12, 2023, E-B Display and three affiliates sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ohio Lead Case No. 23-60565). At the time of the filing, E-B Display reported as much as $10 million in both assets and liabilities. Michael S. Rotolo, president of E-B Display, signed the petition. Judge Tiiara NA Patton oversees the cases. The Debtors tapped Christopher Peer, Esq., at Wickens Herzer Panza Co. as legal counsel; Manchester RBG as financial advisor; and Signet Capital Advisors, LLC as investment banker. E.L. SERVICES: Wins Interim Cash Collateral Access Thru Sept 29 --------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of California authorized E.L. Services, Inc. to use cash collateral on an interim basis in accordance with a budget, through September 29, 2023. A further hearing on the matter is scheduled for September 27 at 10:30 a.m. A copy of the order is available at https://urlcurt.com/u?l=kc9g0q from PacerMonitor.com. About E.L. Services, Inc. E.L. Services, Inc., a landscape and maintenance company located in Dublin, California, filed a Chapter 11 petition (Bankr. N.D. Cal. Case No. 21-41087) on August 25, 2021. On the Petition Date, the Debtor estimated $50,000 to $100,000 in assets and $1 million to $10 million in liabilities. The petition was signed by Steven P. Baca, general manager. Judge William J. Lafferty oversees the case. The Debtor tapped Kornfield, Nyberg, Bendes, Kuhner & Little P.C. to serve as its counsel. EAGLE LEDGE: Gets OK to Hire Keller Williams as Real Estate Broker ------------------------------------------------------------------ Eagle Ledge Foundation, Inc. received approval from the U.S. Bankruptcy Court for the Eastern District of California to employ Keller Williams Preferred Realty as real estate broker. The Debtor requires a broker to assist in the marketing and sale of its real property located at 4130-4142 S. Indiana Avenue. Keller Williams will be paid a 5 percent commission of the property's total purchase price. Anthony Meier, a managing broker at Keller Williams Preferred Realty, disclosed in a court filing that his firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Anthony Meier Keller Williams Preferred Realty 16101 108th Avenue, 2nd Floor Orland Park, IL 60467 Telephone: (708) 798-1111 Email: anthonymeier@kw.com About Eagle Ledge Foundation Formed in 2009, Eagle Ledge Foundation, Inc. is a California not-for-profit religious corporation. ELF launched a loan fund focused on serving the small local church, which often lacked financing options with commercial lenders. It issued bond certificates to individuals who made, either directly or through their retirement accounts, contributions to ELF. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Calif. Case No. 22-90160) on May 18, 2022, with $1 million to $10 million in both assets and liabilities. Chester L. Reid, president, signed the petition. Judge Ronald H. Sargis oversees the case. Lubin Olson & Niewiadomski, LLP and Bush Ross, P.A. represent the Debtor as counsel. EARTHSTONE ENERGY: Fitch Alters Outlook on 'B+' IDR to Positive --------------------------------------------------------------- Fitch Ratings has affirmed Earthstone Energy, Inc. and Earthstone Energy Holdings, LLC's (Earthstone) Long-Term Issuer Default Ratings (IDRs) at 'B+'. Fitch has also affirmed the 'BB+'/'RR1' rating on Earthstone's senior secured Reserve Based Loan (RBL) credit facility and the 'B+'/'RR4' rating on its senior unsecured bonds. The Rating Outlook has been revised to Positive from Stable. The Positive Outlook reflects the announcement that Earthstone has entered into an agreement to acquire Novo Oil & Gas Holdings, LLC (Novo) for $1.5 billion. Concurrently, Northern Oil & Gas, Inc. will acquire one third working interest in Novo for $0.5 billion, resulting in a net $1.0 billion purchase price to Earthstone. The transaction is expected to close in 3Q23. The transaction will materially increase Earthstone's production size and proved reserves base and will be immediately accretive to FCF. The transaction is expected to be funded with cash and borrowings under the company's RBL. It will increase absolute debt and modestly increase leverage; however, the company will maintain clear headroom under Fitch's EBITDA leverage sensitivity with leverage projected to remain between 1.0x and 1.5x throughout Fitch's forecast. The Positive Outlook could be resolved in the next 12 to 18 months if Earthstone makes material progress toward reducing the expected elevated post-close RBL borrowings resulting in total gross debt at or below $1.5 billion, improves its liquidity position and maintains positive FCF. KEY RATING DRIVERS Scale Enhancing, FCF Accretive Acquisition: Earthstone's announced net $1.0 billion acquisition of Nova adds approximately 11,300 net acres in the Delaware basin, increases production and proved reserves by 33% and improves the company's inventory life from 10 to approximately 13 years through an additional 200 gross drilling locations. The acreage will immediately compete for capital because the drilling locations are within the top quartile of the company's existing inventory and the vast majority of locations have an average breakeven oil price below $40/bbl. Management intends to maintain its five-rig drilling program and its current capex guidance. This should facilitate a meaningful increase in FCF generation in 2023 and 2024 at current commodity prices. Fitch views the transaction favorably in the medium- to long-term despite the near-term increase in gross debt. Cash and Debt-Funded Transaction: Fitch views the acquisition as modestly leveraging in the near-term and neutral in the medium-term given Earthstone has adequate headroom under its 2.0x EBITDA leverage sensitivity. The transaction is expected to be funded with cash and borrowings under the company's RBL facility, increasing absolute debt levels to approximately $1.9 billion post-close. Fitch expects management will allocate the vast majority of FCF to reducing RBL borrowings over the next 12 to 18 months, which should improve leverage metrics and liquidity. Sub-1.5x Leverage; FCF Generation: Fitch's base case forecasts pro forma 2023 leverage of 1.3x and 2026 leverage (using its mid-cycle $50/bbl WTI price and $2.75/mcf natural gas price) also at 1.3x. This allows the company to maintain ample headroom under Fitch's positive EBITDA leverage sensitivity of 2.0x. Fitch projects approximately $400-$450 million of annual FCF generation in 2023 and 2024, which supports the reduction of RBL borrowings and total gross debt below $1.5 billion over the next 12 to 18 months. Earthstone's FCF benefits from it not paying a dividend and its nearly zero organic growth capital spending, which is expected to continue post-close. An inability to repay RBL borrowings in a timely manner and/or a reduction in the forecast FCF profile could result in a stabilization of the Outlook. Adequate Hedging Profile: Additional FCF visibility is provided by Earthstone's hedging program. On a pro forma basis, the program includes approximately 40%-45% of oil volumes hedged through the remainder of 2023 at an average price of $78 WTI. The company is also hedging roughly 35% of natural gas production at an average price of approximately $3.50. Fitch expects Earthstone to layer in additional hedges for 2024 to protect cash flows, thereby supporting gross debt reduction and the liquidity profile. Acquisition Growth Strategy: Earthstone has closed six acquisitions, including Chisholm, Bighorn and Titus, since 2021 for approximately $2.5 billion. Fitch expects Earthstone to continue to look for in-basin, bolt-on opportunities to support its growth. Earthstone's reliance on M&A, particularly at its current pace, increases execution risk. However, the company has reasonably integrated its existing acquisitions, and future integration risks are tempered by its Permian Basin focus. Single Basin Focus: Earthstone has some asset diversification with material footprints in both the Midland and Delaware Permian sub-basins, but its single basin strategy, although common for companies of its size, provides relatively little diversification benefits. Parent Subsidiary Ratings Equalized: Fitch consolidates the ratings of Earthstone Energy, Inc. and Earthstone Energy Holdings LLC, its wholly owned subsidiary where debt is issued. Under Fitch's Parent and Subsidiary Linkage Criteria this follows the stronger-subsidiary/weaker-parent relationship. The ratings are consolidated to reflect both open access and control and the absence of legal ring fencing. DERIVATION SUMMARY Pro forma the Novo transaction, Earthstone is expected to produce approximately 130 Mboepd. This is slightly larger than Permian peer Callon Petroluem (B/RWP; pro forma production of approximately 120 Mboepd) but smaller than Matador Resources Company (BB-/Stable; 140-145 Mboepd pro forma the Advanced Energy Partners transaction) and SM Energy Company (BB-/Stable; 146 Mboepd). Earthstone's 1Q23 Fitch-calculated unhedged cash netback of $27.2/boe compares favorably across Fitch's aggregate E&P portfolio as is consistent with its position in the highly economic Permian Basin. Compared to similarly sized Permian peers Callon ($43.5/boe), Matador ($38.2/boe), and SM ($29.4/boe), Earthstone's netback is towards the lower end of the group primarily given its lower oil mix. Mid-cycle EBITDA leverage profiles among each of these peers are relatively consistent at around 1.5x. KEY ASSUMPTIONS - WTI (USD/bbl) of $80 in 2023, $70 in 2024, $60 in 2025 and $50 thereafter; - Henry Hub (USD/mcf) of $3.50 in 2023 and 2024, $3.00 in 2025 and $2.75 thereafter; - Base interest rates applicable to the company's outstanding variable rate debt obligations reflects current SOFR forward curve; - Announced Novo transaction closes in 3Q23 under proposed terms; - Low organic production growth with capex modestly above maintenance levels; - Oil weighting increases modestly through the forecast; - FCF applied to reduction of the RBL. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: - FCF generation that results in a reduction of RBL borrowings, improved liquidity and total gross debt at or below $1.5 billion; - Continued de-risking and operational momentum in the Permian basin that results in material increase of PDP reserves, inventory and oil weighting; - Organic and/or M&A growth increasing production approaching 125Mboped while maintaining unit costs; - Mid-cycle EBITDA Leverage sustained below 2.0x. Factors that could, individually or collectively, lead to negative rating action/downgrade: - A shift to negative FCF contributing to diminished liquidity or utilization of revolver commitment sustained above 65%; - Failure to maintain a clear, conservative financial and operational policy; - Mid-cycle EBITDA Leverage sustained above 2.5x. LIQUIDITY AND DEBT STRUCTURE Reduced Post-Close Liquidity: Fitch expects Earthstone's post-close liquidity will be reduced because the $1.0 billion purchase price of Novo is expected to be funded with RBL borrowings. Fitch believes the liquidity profile will improve thereafter due to reduction of RBL borrowings via FCF generation. The company has secured $250 million of incremental commitments from its lenders, which will bring the total elected commitments from $1.4 billion to $1.65 billion. At 1Q23, $452 million of borrowings were outstanding under the facility, leaving approximately $1.2 billion of available capacity to fund the acquisition. Earthstone's liquidity profile is further supported by positive annual FCF through Fitch's forecast period, the company's financial policy, which does not include dividends; and a lack of maturities until 2027. KEY RECOVERY RATING ASSUMPTIONS The recovery analysis assumes that Earthstone would be reorganized as a going concern (GC) in bankruptcy rather than liquidated. Fitch has assumed a 10% administrative claim and an 80% draw on the RBL facility. The 80% draw on the RBL facility reflects the increased likelihood that a redetermination would negatively affect the revolver's size level in a stress case environment. Going-Concern Approach Earthstone's GC EBITDA estimate of $550 million reflects Fitch's view of a sustainable, post-reorganization EBITDA level upon which the agency bases the enterprise valuation. Earthstone's bankruptcy scenario considers a weakened oil and gas environment resulting in reduced operational and financial flexibility, in line with Fitch's stress case assumptions. Fitch believes the lower price environment pressures liquidity and consequently results in a lower capital program to maintain production and manage negative FCF. The GC assumption reflects Fitch's stressed case price deck, which assumes WTI oil prices of $65 in 2023, $42 in 2024, $32 in 2025, $42 in 2026 and $45 longer term. An enterprise value (EV) multiple of 3.5x EBITDA is applied to the GC EBITDA to calculate a post-reorganization EV. The choice of this multiple considered the following factors: - The historical bankruptcy case study exit multiples for peer companies ranged from 2.8x-7.0x, with an average of 5.2x and a median of 5.4x; - The multiple is in line with Permian comparable Callon Petroleum, and the multiple's used for SM resources and Matador Petroleum when they were previously rated at the 'B+' rating level. Liquidation Approach The liquidation estimate reflects Fitch's view of the value of balance sheet assets that can be realized in a sale or liquidation processes conducted during a bankruptcy or insolvency proceeding and distributed to creditors. In assigning the value for Earthstone's assets, Fitch considered Earthstone's PV10 value adjusted for a lower-price environment and comparable multiples for production per flowing barrel, value per acre and value per drilling location within the Delaware and Midland Basins. Under the waterfall allocation, the first lien RBL has a 'RR1' recovery and is notched up three levels to 'BB+'. The senior unsecured notes are assigned a 'RR4' recovery rating and are notched in line with the IDR at 'B+'. ISSUER PROFILE Earthstone Energy, Inc. is an independent oil and gas energy exploration and production company with operations primarily in the Midland Basin of west Texas and Delaware Basin in New Mexico. 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 ----------- ------ -------- ----- Earthstone Energy, Inc. LT IDR B+ Affirmed B+ Earthstone Energy Holdings, LLC LT IDR B+ Affirmed B+ senior unsecured LT B+ Affirmed RR4 B+ senior secured LT BB+ Affirmed RR1 BB+ EASTERN NIAGARA: No Decline in Patient Care, 14th PCO Report Says ----------------------------------------------------------------- Michele McKay, the court-appointed patient care ombudsman, filed with the U.S. Bankruptcy Court for the Western District of New York her 14th report regarding the quality of patient care provided at the health care facilities operated by Eastern Niagara Hospital, Inc. The report covers the period from April 1 to June 1, 2023 during which two visits to the facilities were made by the patient care ombudsman. The PCO reported that both the Hospital and Transit Road outpatient sites continue to be adequately staffed and meet the needs of their patients. At the hospital, patient census has been consistent and ranges from 5 to 12 patients on the inpatient unit and averages 30 to 35 patient visits a day in the Emergency Department. The PCO further reported that the Occupational Medicine, Express Care, and Surgery Center on Transit Road continue to see a steady volume of patients. Staffing in all three of those areas is consistent and there are no complaints regarding availability of needed supplies or equipment for the care and treatment of patients. For the timeframe of the report, there are no findings of decline in patient care. Eastern Niagara Hospital and the Express Care, Occupational Medicine and Surgery Center on Transit Road continue to operate in a manner that provides acceptable care to patients. The facilities have enough supplies and equipment required for patient care and have been able to provide the needed nursing coverage by utilizing existing staff, according to the report. A copy of the 14th ombudsman report is available for free at https://urlcurt.com/u?l=o1rq1l from PacerMonitor.com. About Eastern Niagara Hospital Eastern Niagara Hospital, Inc. -- http://www.enhs.org-- is a not-for-profit organization focused on providing general medical and surgical services. Eastern Niagara Hospital sought Chapter 11 protection (Bankr. W.D.N.Y. Case No. 20-10903) on July 8, 2020, with $10 million to $50 million in both assets and liabilities. Judge Michael J. Kaplan oversees the case. The Debtor tapped Barclay Damon, LLP as its bankruptcy counsel; Francis P. Weimer, Esq., as special counsel; Freed Maxick CPAs, P.C. as financial advisor; and Lumsden & McCormick, LLP as accountant. The U.S. Trustee for Region 2 appointed an official committee of unsecured creditors on Nov. 22, 2019. Bond Schoeneck & King, PLLC and Next Point, LLC serve as the committee's legal counsel and financial advisor, respectively. Michele McKay was appointed as patient care ombudsman in the Debtor's bankruptcy case. Jeffrey Dove, Esq., is the PCO's attorney. EDGEWATER CONSTRUCTION: Income & Vazquez Contribution to Fund Plan ------------------------------------------------------------------ Edgewater Construction Group, Inc., filed with the U.S. Bankruptcy Court for the Southern District of Florida a Plan of Reorganization dated June 20, 2023. The Debtor was formed in February 1999 to provide general contracting services, with a specific concentration on multifamily residential projects. In or around January 2017, Edgewater began to expand its services to include subcontractor services of stucco and drywall installation. While the Debtor is completing some of its prepetition projects, presently and upon emergence from Chapter 11, Edgewater is focusing on returning to its roots as a general contractor; doing so will provide greater control and certainty over its cash flow. The Plan Proponent's financial projections (the "Projections") are predicated upon a significant contracture in the business that includes, inter alia, the sale of the 6962 Office Condo, leasing a virtual office (with dedicated phone and mail service), a reduction in work force, and the Vazquez Exit Contribution. Absent a significant and material increase in new work, the Debtor cannot commit to continue sustaining its current operations. This Plan proposes to pay Allowed Claims no less than the value of Edgewater's Net Disposable Income for a period of 36 months (which will necessarily include the Vazquez Exit Contribution) as well as such proceeds from the sale of personal property. The Plan provides for 8 Classes of creditor claims (including priority, secured, and unsecured) and one Class of Equity interests. Class 3-A consists of Allowed Claims of the Sureties. The Sureties shall be entitled to retain a first priority interest in any receipts related to their respective Insured Projects and shall be entitled to payment of proceeds thereon to the extent that either of the Sureties have incurred any costs related thereto. Because the Debtor's Principals are committing 100% of their non exempt assets to the Plan and as long as the Reorganized Debtor is not in default under the terms of the Plan, the Sureties shall be enjoined from pursuing the guarantors or indemnitors under the respective bonds of any such obligations. Class 3-A is impaired and entitled to vote. Class 3-B consists of Allowed General Unsecured Claims (excluding the Sureties). Absent a net recovery to the estate from the Project Receivables, it is anticipated that the Reorganized Debtor will have no Net Disposable Income. However, in the event that the Reorganized Debtor realizes a recovery of any of the Project Receivables, the Reorganized Debtor will commit 50% of every dollar collected (after payment of fees and costs associated therewith) to Class 3 on a pro rata basis. Class 3 is Impaired and entitled to vote. Class 4 consists of Equity Interests of Dulce and Ulysses Vazquez in Edgewater. On the Effective Date, the Equity Interests will be retained in the same amounts and character as they were held prior to the Petition. Class 4 is deemed to accept and not entitled to vote. On the Effective Date, all property of the Debtor not otherwise disposed of under the Plan, shall vest with the Reorganized Debtor. The Plan proposes to pay Allowed Claims to be paid under the Plan via a Plan Fund consisting of either, some, or all of the following: (i) Net Disposable Income; and (ii) the commitment of all of the Debtor's Principals, Ulysses and Dulce Vazquez, nonexempt assets to the Plan with an estimated net value of $422,320.00 (the "Vazquez Exit Contribution"). The Debtor's Net Disposable Income means all excess cash from the Debtor's income after: (i) payment in full of all Allowed Administrative Claims; (ii) payment in full of monthly ordinary course of business operating expenses; and (iii) a set aside of an operational reserve in the amount $88,550.00. On or prior to the final hearing to consider confirmation of the Plan ("Confirmation Date"), the Debtor shall continue to operate its business, and pay its current expenses in the ordinary course of business. In addition, the Debtor shall continue to comply with the various other Orders entered by the Bankruptcy Court during the course of this Case. A full-text copy of the Plan of Reorganization dated June 20, 2023 is available at https://urlcurt.com/u?l=gaXzfl from PacerMonitor.com at no charge. Attorneys for the Debtor: Jacqueline Calderin, Esq. Agentis PLLC 55 Alhambra Plaza, Suite 800 Coral Gables, FL 33134 Telephone: (305) 722-2002 Email: jc@agentislaw.com Edgewater Construction Group Edgewater Construction Group, Inc. is a Miami-based company that provides general contractor services. The company has been in business since February 1999. Edgewater filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 23-12217) on March 22, 2023, with up to $50,000 in assets and $1 million to $10 million in liabilities. Ulysses Vazquez, II, president of Edgewater, signed the petition. Judge Laurel M. Isicoff presides over the case. The Debtor tapped Jacqueline Calderin, Esq., at Agentis, PLLC as bankruptcy counsel and Touron Law as special construction counsel. FREE SPEECH: Sandy Hook Families Agree to Plan Talks With Jones --------------------------------------------------------------- Vince Sullivan of Law360 reports that families of victims of the 2012 Sandy Hook school shooting have engaged in Chapter 11 plan negotiations with bankrupt right-wing conspiracy theorist Alex Jones and his radio business, telling a Texas judge Wednesday, June 14, 2023, that if no deal is reached they will be free to resume their pursuit of defamation damages against the debtors. 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. Shunningfrom financial institutions and banning Jones and FSS from majortech 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 GROUP: Sam Bankman-Fried to Face Two U.S. Trials ---------------------------------------------------- Reshmi Basu and Jonathan Randles of Bloomberg News report the criminal case against FTX co-founder Sam Bankman-Fried has been split in two after a New York judge ruled he must face separate trials because of an unresolved dispute over his extradition from the Bahamas. Bankman-Fried, who faces 13 charges tied to the collapse of the FTX cryptocurrency exchange, challenged five of the counts because he says they weren't covered by an extradition agreement that paved the way for his return to the US last December to face prosecution for an alleged multibillion fraud. 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. GIRARDI & KEESE: Tom Opposes Prosecutors Seeing Unredacted Report ----------------------------------------------------------------- Joyce E. Cutler of Bloomberg Law reports that disbarred attorney Thomas Girardi opposes showing prosecutors an unredacted version of an expert's ruling that he is competent to stand trial on criminal fraud charges. Defense counsel redacted information in expert neuropsychologist Dr. Diana Goldstein's report when they received it before prosecutors. The report was conducted in one of two criminal indictments alleging he stole from clients. The redacted information includes Girardi's response regarding alcohol consumption, "a little over four lines of text" responding to a question about the charges, and six-and-a-half pages regarding his responses to questions about the Los Angeles federal charges, the opposition filed Friday, June 16, 2023, said. "In making this request, the government fails to identify any need for the requested statements, which comprise only about 7 pages of a nearly 100-page report," his federal public defenders said in urging the court to reject prosecutors' request. "And it ignores Mr. Girardi’s Fifth Amendment rights." The US Attorney's Office for the Central District of California agreed to let the defense see the competency report first to allay any concern that prosecutors would see privileged information. Goldstein "has concluded her examination and opined, among other things, that defendant is competent to stand trial," prosecutors said in a motion. Federal prosecutors argue there's no Fifth Amendment right to redact statements at competency stage. The government agreed that Girardi's statements during competency evaluations "are not admissible against defendant at trial, unless he raises a mental status defense." Even the redacted report was sealed. A defense competency motion is due June 23 with a hearing Aug. 3, 2023 before US District Judge Josephine L. Staton. A federal judge in Chicago also ordered a competency hearing to determine if the ex-lawyer is fit to stand trial. A finding of unfitness wouldn’t absolve Girardi of the charges, but it would table the charges indefinitely. Girardi was indicted in California and Illinois for allegedly embezzling client funds. Girardi Keese LLP and Girardi individually were forced into bankruptcy in December 2020. More State Bar Charges The defense filing came the same day the California Bar announced it was seeking to disbar former Girardi Keese attorneys David Lira, who is Girardi’s son-in-law, and Keith David Griffin. The Office of Chief Trial Counsel filed disciplinary charges against the lawyers for their alleged roles in stealing millions of dollars in settlement funds from families of victims in the litigation over the 2018 crash of Lion Air Flight JT610—a Boeing 737 Max 8 airliner—in waters off Indonesia that killed all 189 passengers and crew on board. Girardi, Lira, and former firm chief financial officer Christopher Kamon were indicted on charges they stole from family members of those who died in the 2018 crash of Lion Air flight JT610. Girardi, who was placed under conservatorship, is residing in an assisted living facility in Southern California on a floor designated for dementia patients, a filing in the Chicago case said. The case is USA v. Girardi, C.D. Cal., No. 2:23-cr-00047, motion 6/16/23. 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 TEE: Gets OK to Hire ZZZ Business Services as Accountant --------------------------------------------------------------- Global Tee Company, LLC received approval from the U.S. Bankruptcy Court for the Western District of Michigan to hire ZZZ Business Services, LLC as its accountant. The firm will render these services: a. complete reconciliation of bank accounts and credit cards for 2021, 2022 and 2023; b. reconnect and sync existing bank accounts and credit cards; c. tie out Paypal and other merchant accounts to statements; and d. reconcile long term debts. The firm will receive a retainer in the amount of $2,500. The firm will charge $100 per hour for services render by its accountants, plus $75 per month for Quickbooks Online Plus subscription. The firm does not hold or represents any interest adverse to the Debtor or its estate, according to court filings. The firm can be reached through: Eric Huizing, CPA Jesse Girod, MBA ZZZ Business Services, LLC PO Box 6238 Grand Rapids, MI 49516 Phone: 616-340-6471 Phone: 616-283-2875 Email: eric@zzzbusiness.com jesse@zzzbusiness.com About The Global Tee Company The Global Tee Company, L.L.C. is a manufacturer of women's fitness wearing apparel, which markets the sale of its products through an online marketing program. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Mich. Case No. 23-01205) on May 25, 2023. In the petition signed by Scott Sandberg, member, the Debtor disclosed up to $500,000 in assets and up to $10 million in liabilities. Judge James W. Boyd oversees the case. Perry Pastula, Esq., at Dunn, Schouten & Snoap, P.C., represents the Debtor as legal counsel. GOLDEN DEVELOPING: Case Summary & Four Unsecured Creditors ---------------------------------------------------------- Debtor: Golden Developing Business Solutions Inc. 3000 N Federal HIghway, Suite 200 Fort Lauderdale, FL 33306 Business Description: Golden Developing is a health and wellness focused holding company that owns several businesses, all of which are centered in the pharmacy business sector. Chapter 11 Petition Date: June 22, 2023 Court: United States Bankruptcy Court Southern District of Florida Case No.: 23-14893 Judge: Hon. Scott M. Grossman Debtor's Counsel: David L. Merrill, Esq. THE ASSOCIATES Harbour Financial Center 2401 PGA Boulevard, Suite 280M Suite B Palm Beach Gardens, FL 33410 Tel: (561) 877-1111 Email: dlm@theassociates.com Total Assets as of March 31, 2023: $7,798,584 Total Debts as of March 31, 2023: $7,631,425 The petition was signed by Stavros Triant as chief executive officer. A full-text copy of the petition containing, among other items, a list of the Debtor's four unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/FDIDVYQ/Golden_Developing_Business_Solutions__flsbke-23-14893__0001.0.pdf?mcid=tGE4TAMA GRAPE AND VINE: Gary Murphey Named Subchapter V Trustee ------------------------------------------------------- The U.S. Trustee for Region 21 appointed Gary Murphey of Resurgence Financial Services, LLC as Subchapter V trustee for Grape and Vine, LLC. Mr. Murphey 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. Murphey declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Gary Murphey Resurgence Financial Services, LLC 3330 Cumberland Blvd., Suite 500 Atlanta, GA 30330 Tel: 770-933-6855 Email: Murphey@RFSLimited.com About Grape and Vine Grape and Vine, LLC filed a Chapter 11 petition (Bankr. N.D. Ga. Case No. 23-55562) on June 13, 2023, with as much as $50,000 in assets and $100,001 to $500,000 in liabilities. Judge Barbara Ellis-Monro oversees the case. M. Denise Dotson, LLC is the Debtor's bankruptcy counsel. GRAPE AND VINE: Seeks Interim Cash Collateral Access ---------------------------------------------------- Grape and Vine, LLC d/b/a Cru Lounge Morrow, asks the U.S. Bankruptcy Court for the Northern District of Georgia, Atlanta Division, for authority to use cash collateral on an interim basis, in accordance with the budget, with a 10% variance. The Debtor requires the use of cash collateral to pay operating expenses necessary to the continuity of the Debtor's operations and its reorganization. The Debtor maintains a bank account at Wells Fargo ending in 7360. On the Petition Date, Wells Fargo froze the account and is holding approximately $23,000. On May 4, 2022, a UCC-1 financing statement was filed on behalf of Byz Funding with the Clayton County Superior Court Clerk file number 031-2022-000525 pursuant to which Byz Funding may assert a blanket lien on substantially all of the Debtor's assets including, without limitation, accounts. On May 6, 2022, a UCC-1 financing statement was filed on behalf of Swift Financial with the Coweta County Superior Court Clerk file number 038-2022-016086 pursuant to which Swift Funding may assert a blanket lien on substantially all of the Debtor's assets including, without limitation, accounts. As adequate protection, each of the Respondents are granted a valid, attached, choate, enforceable, perfected and continuing security interest in, and liens upon all post-petition assets. The Respondent's security interests in, and liens upon, the Post-Petition Collateral will have the same validity as existed between each the Respondent and the Debtor, and all other creditors or claimants against the Debtor's estate on the Petition Date. These events constitute an "Event of Default": (i) the conversion or dismissal of the case; (ii) the appointment of a trustee or an examiner with expanded powers in the case; or (iii) the use of cash collateral to pay any items not contained in the Budget without the consent of the Respondents. A copy of the motion and the Debtor's budget is available at https://urlcurt.com/u?l=D519NM from PacerMonitor.com. The Debtor projects total sales, on a monthly basis, as follows: $55,000 for July 2023; $55,000 for August 2023; $55,000 for September 2023; $55,000 for October 2023; $55,000 for November 2023; and $55,000 for December 2023. About Grape and Vine, LLC Grape and Vine, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 23-55562) on June 13, 2023. In the petition signed by Jessica Booth, principal officer, the Debtor disclosed up to $100,000 in assets and up to $500,000 in liabilities. M. Denise Dotson, Esq., represents the Debtor as legal counsel. GUARDIAN FUND: U.S. Trustee Seeks Appointment of Bankruptcy Trustee ------------------------------------------------------------------- Tracy Hope Davis, U.S. Trustee for Region 17, asked the U.S. Bankruptcy Court for the District of Nevada to appoint a Chapter 11 trustee for Guardian Fund, LLC or, in the alternative, directing the appointment of an examiner. The immediate appointment of a trustee is appropriate in Guardian Fund's Chapter 11 case to allow an independent person to investigate the admitted pre-bankruptcy misconduct and mismanagement of its affairs, irrespective of the company's installment of a new manager (and sole voting member) when it filed its bankruptcy case, the U.S. Trustee argued in court papers. The sole principal of Guardian Fund's current manager acknowledged during a meeting of creditors that mismanagement or incompetence occurred under the company's prior management, and the company's current manager served as the chief executive officer of the company's former manager from May 2022 to approximately early February of this year. The appointment of a trustee would be in the best interests of Guardian Fund's estate and would provide the myriad of creditors and other parties involved in the case with critically needed transparency regarding the company's assets, liabilities, and financial information, the U.S. Trustee said. "The potentially divergent interests of the estate, the admitted financial misconduct that took place, and the significant number of creditors all make the appointment of an independent and disinterested party in the best interests of the various constituencies interested in the outcome of this case," the U.S. Trustee said in court papers. About Guardian Fund The WendellLa and Nancy King Family Trust and several other creditors represented by Jeffrey L. Hartman filed a Chapter 7 involuntary petition (Bankr. D. Nev. Case No. 23-50117) against Guardian Fund, LLC, a company in Reno, Nev., on March 17, 2023. On April 11, 2023, Guardian Fund filed a Chapter 11 voluntary petition (Bankr. D. Nev. Case No. 23-50233). At the time of the filing, Guardian Fund reported $10 million to $50 million in assets and $50 million to $100 million in liabilities. On April 27, 2023, the Nevada bankruptcy court approved the stipulation filed in both cases by Guardian Fund and the petitioning creditors. The order directed the consolidation of the two cases, with Case No. 23-50177 as the lead case, and set the Chapter 11 petition date to March 17, 2023. Judge Natalie M. Cox oversees the case. Harris Law Practice, LLC serves as the Debtor's legal counsel. On May 10, 2023, the U.S. Trustee for Region 17 appointed an official committee to represent unsecured creditors in the Debtor's Chapter 11 case. The committee is represented by its bankruptcy attorney, Sallie B. Armstrong, Esq. GUR-MEAT INC: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Gur-Meat Inc. LMR Food Services PO Box 534 Garrochales, PR 00652-0534 Chapter 11 Petition Date: June 23, 2023 Court: United States Bankruptcy Court District of Puerto Rico Case No.: 23-01914 Judge: Hon. Maria De Los Angeles Gonzalez Debtor's Counsel: Javier Vilarino, Esq. VILARINO & ASSOCIATES PO Box 9022515 San Juan, PR 00902-2515 Tel: (787) 565-9894 Email: jvilarino@vilarinolaw.com Total Assets: $292,906 Total Liabilities: $3,598,904 The petition was signed by Mariely Ramos Rojas as president. A full-text copy of the petition containing, among other items, a list of the Debtor's 20 largest unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/HXWNHEY/GUR-MEAT_INC__prbke-23-01914__0001.0.pdf?mcid=tGE4TAMA HELLO LIVINGSTON: Seeks to Hire North Point as Real Estate Broker ----------------------------------------------------------------- Hello Livingston Extended, LLC seeks approval from the U.S. Bankruptcy Court for the Southern District of New York to employ North Point Real Estate Group as special real estate broker. The Debtor needs a broker to assist in the marketing and sale of its property located at 291 Livingston St., Brooklyn, N.Y. The firm will be paid a commission equal to 2 percent of the gross purchase price of the property. Greg Corbin, president of North Point Real Estate Group, disclosed in a court filing that his firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Hello Livingston Extended Hello Livingston Extended, LLC is the fee owner of a property located at 291 Livingston St., Brooklyn, N.Y., valued at $29.5 million. Hello Livingston Extended filed a petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Case No. 23-22422) on June 2, 2023. In the petition filed by its chief restructuring officer, David Goldwasser, the Debtor disclosed $29,500,000 in total assets and $37,034,732 in liabilities. Judge Sean H. Lane oversees the case. The Debtor tapped Robert L. Rattet, Esq., and Jonathan S. Pasternak, Esq., at Davidoff Hutcher & Citron, LLP as bankruptcy attorneys. HELLO LIVINGSTON: Seeks to Tap Davidoff Hutcher & Citron as Counsel ------------------------------------------------------------------- Hello Livingston Extended, LLC seeks approval from the U.S. Bankruptcy Court for the Southern District of New York to employ Davidoff Hutcher & Citron, LLP as its counsel. The firm will render these services: (a) advise the Debtor with respect to its powers and duties in the continued management of its property and affairs; (b) negotiate with creditors of the Debtor and work out a plan of reorganization and take the necessary legal steps in order to effectuate such a plan; (c) prepare legal papers; (d) appear before the bankruptcy court to protect the interest of the Debtor and to represent it in all matters pending before the court; (e) attend meetings and negotiate with representatives of creditors and other parties in interest; (f) advise the Debtor in connection with any potential refinancing of secured debt and any potential sale of the business; (g) represent the Debtor in connection with obtaining post-petition financing; (h) take any necessary action to obtain approval of a disclosure statement and confirmation of a plan of reorganization; and (i) perform all other legal services for the Debtor which may be necessary for the preservation of its estate. The hourly rates of the firm's counsel and staff are below: Attorneys $450 - $850 Paraprofessionals $195 - $260 In addition, the firm will seek reimbursement for expenses incurred. Jonathan Pasternak, Esq., an attorney at Davidoff Hutcher & Citron, disclosed in a court filing that the firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Robert L. Rattet, Esq. Jonathan S. Pasternak, Esq. Davidoff Hutcher & Citron, LLP 120 Bloomingdale Road, Suite 100 White Plains, NY 10605 Telephone: (914) 381-7400 Email: rlr@dhclegal.com jsp@dhclegal.com About Hello Livingston Extended Hello Livingston Extended, LLC is the fee owner of a property located at 291 Livingston St., Brooklyn, N.Y., valued at $29.5 million. Hello Livingston Extended filed a petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Case No. 23-22422) on June 2, 2023. In the petition filed by its chief restructuring officer, David Goldwasser, the Debtor disclosed $29,500,000 in total assets and $37,034,732 in liabilities. Judge Sean H. Lane oversees the case. The Debtor tapped Robert L. Rattet, Esq., and Jonathan S. Pasternak, Esq., at Davidoff Hutcher & Citron, LLP as bankruptcy attorneys. HUNT COS: S&P Alters Outlook to Positive, Affirms 'BB-' ICR ----------------------------------------------------------- S&P Global Ratings revised its outlook on Hunt Cos. Inc. to positive from stable and affirmed its 'BB-' issuer credit and senior secured debt ratings. The positive outlook reflects our expectation for the company to operate with an loan-to-value (LTV) ratio of 20%-30% during the next 12 months, while portfolio quality, liquidity, and diversification remain unchanged. Hunt has a track record of good liquidity from portfolio transactions, despite its portfolio being largely unlisted. Hunt's aggregate portfolio value has been resilient, resulting in a LTV ratio comfortably below 30%, which S&P believes will be sustained even if higher cap rates lead to some valuation declines within the company's real estate investments next year. This has abated some of S&P's concerns regarding the illiquid nature of its predominantly unlisted assets with some concentration in real estate assets. Hunt typically executes several liquidity transactions annually; however, this may prove more challenging amid higher interest rates and the potential for lower market valuations. IEH AUTO PARTS: Heading Towards Liquidation After Plan Confirmed ---------------------------------------------------------------- Emily Lever of Law360 reports that a Texas bankruptcy judge Friday, June 16, 2023, confirmed the Chapter 11 reorganization plan for IEH Auto Parts LLC, a company owned by billionaire Carl Icahn that is set to be liquidated after its assets were sold last month for $77 million. About IEH Auto Parts Holding IEH Auto Parts Holding LLC -- https://autoplusap.com/ -- distributes automotive products. The Company offers equipment, tools, accessories, paint, and related products in the automotive aftermarket. Auto Plus serves customers in the United States. IEH Auto Parts Holding LLC and its affiliates filed a petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Case No. 23-90054) on Feb. 1, 2023. In the petition filed by John Michael Neyrey, as chief executive officer, the Debtor reported assets and liabilities between $100 million and $500 million. The case is overseen by Honorable Bankruptcy Judge Christopher M Lopez. The Debtor is represented by: Veronica Ann Polnick, Esq. Jackson Walker, LLP 112 Townpark Drive NW Suite 300 Kennesaw, GA 30144 IMMANUEL SOBRIETY: PCO Submits First Report ------------------------------------------- Tamar Terzian, the court-appointed patient care ombudsman, filed with the U.S. Bankruptcy Court for the Central District of California her first interim report dated April 11 to June 11, 2023, regarding Immanuel Sobriety Inc.'s health care facility. The PCO observed generally at each location that all medication was properly labeled and stored for the participants. For each location, there is a designated staff area that had the medication and filed for the participants. The PCO reviewed each log maintained on site at the facility and observed that each participant's belongings were stored in separate baskets in a locker that only responsible parties could access. During the PCO's visit, a tour was provided and participants only come to this location when there are classes for the high school, anger management or job readiness, life skills courses. There is five days of programming and the case manager will determine if the participant needs more or less. The PCO finds that all care provided by Immanuel to the participants are at the minimum of standard of care set by the Joint Commission. A copy of the ombudsman report is available for free at https://urlcurt.com/u?l=sJf9Rz from PacerMonitor.com. The ombudsman may be reached at: Tamar Terzian, Esq. Terzian Law Group 1122 E. Green Street Pasadena, CA 91106 Telephone: (818) 242-1100 Facsimile: (818) 242-1012 Email: tterzian@terzlaw.com About Immanuel Sobriety Immanuel Sobriety Inc. provides drug and alcohol rehabilitation programs and treatment services. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Calif. Case No. 23-10806) on March 2, 2023. In the petition signed by its chief executive officer, Elizabeth Reid, the Debtor disclosed up to $500,000 in assets and up to $1 million in liabilities. Judge Wayne Johnson oversees the case. The Law Office of Crystle J. Lindsey represents the Debtor as legal counsel. INN S.F. ENTERPRISE: Unsec. Creditors Will Get Up to 5% in Plan --------------------------------------------------------------- Inn S.F. Enterprise, Inc., submitted an Amended Plan of Reorganization for Small Business dated June 20, 2023. The Debtor's financial projections show that it will have disposable income of approximately $19,000, which shall serve as a reserve for the Debtor's post-confirmation operations. The Plan provides for payments to allowed administrative, Class 2A and Class 3 claims total $130,000, plus additional payments to Class 3 claims if the Debtor's disposable income in any given quarter exceeds projections over the 3-year term of this Plan. The final Plan payment is expected to be paid on September 1, 2026. The Debtor's projections assume pre-pandemic revenues, with adjustments for inflation, annual increased room rates, and seasonal occupancy fluctuations based on historical financial information. This Plan of Reorganization proposes to pay creditors of the Debtor cash flow from the operation of the Debtor's bed and breakfast establishment. Non-priority unsecured creditors holding allowed claims will receive distributions to the extent that disposable income exceeds projections, which the proponent of this Plan has valued at approximately 0-5 cents on the dollar. This Plan also provides for the payment of administrative and priority claims. Class 2A consists of the Secured claim of First Commercial Bank. First Commercial Bank ("FCB") shall retain its lien against all personal property collateral (the "Personal Property Collateral") pledged by the Debtor. Pursuant to the terms of the Plan of Reorganization (the "Neely Plan") filed by Debtor in Possession Martin Arthur Neely ("Neely") in the related case In re Martin Arthur Neely, Case No. 23-30160- DM (the "Neely Bankruptcy Case"), Neely will pay the entire amount contractually due to FCB by making all postconfirmation regular non-default contractual monthly payments ($7,827.35) for 35 months, and then paying the outstanding balance of the allowed claim, including all preconfirmation arrears, in the 36th month following the Effective Date through a sale or refinance of real property commonly known as 943 S. Van Ness Avenue, San Francisco, California 94110. For the purposes of confirming this Plan, the Class 2A Claim of FCB shall be estimated at zero, in accordance with Section 157(b)(2)(B) of the Bankruptcy Code. FCB shall not be authorized to take any enforcement action with respect to the Personal Property Collateral pledged by the Debtor, unless there is a Material Default pursuant to Section 8.06 of the Neely Plan, which Neely fails to cure timely, and at such time, FCB may be granted relief from the automatic stay and relief from the terms of this Plan to exercise all of its rights and remedies in the Personal Property Collateral pledged by the Debtor under applicable non-bankruptcy law and if necessary, upon default the Class 2A Claim will be estimated. Class 3 consists of Non-priority unsecured creditors. To the extent that any post-confirmation Quarterly Report filed by the Debtor in this case reflects disposable income, each holder of an allowed unsecured claim will receive a pro rata share of such excess income, in cash, within 30 days after the report is filed. The Debtor shall commence filing Quarterly Reports on December 21, 2023, for the months of September through November 2023. It is estimated that Class 3 allowed claims may receive pro rata distributions between 0-5% of each allowed claim under the Plan. This Class is impaired. Shareholder(s), Martin Arthur Neely, shall retain his respective interests in the Debtor. On the effective date, all assets of the estate shall be revested in the reorganized Debtor to make all distributions required to be paid to allowed claims under the terms of the plan and administrative expenses. The reorganized Debtor shall continue in operation as a bed and breakfast and shall make plan payments from disposable income generated by revenue from guest room receipts. A full-text copy of the Amended Plan dated June 20, 2023 is available at https://urlcurt.com/u?l=YZEQsc from PacerMonitor.com at no charge. Debtor's Counsel: Sarah M. Stuppi, Esq. Law Offices of Stuppi & Stuppi 1630 North Main Street, Suite 332 Walnut Creek, CA 94596 Tel: (415) 786-4365 Fax: (925) 287-8113 Email: Sarah@stuppilaw.com About Inn S.F. Enterprise Inn S.F. Enterprise, Inc., a company in San Francisco, Calif, filed its voluntary petition for Chapter 11 protection (Bankr. N.D. Cal. Case No. 22-30477) on Sept. 14, 2022, with up to $500,000 in assets and up to $10 million in liabilities. Martin A. Neely, president of Inn S.F. Enterprise, signed the petition. Judge Dennis Montali oversees the case. Sarah M. Stuppi, Esq., at the Law Offices of Stuppi & Stuppi, serves as the Debtor's legal counsel. JDI DATA: Trustee Taps Vaupen Financial as Investment Banker ------------------------------------------------------------ Scott Brown, the Chapter 11 trustee for JDi Data Corporation, received approval from the U.S. Bankruptcy Court for the Southern District of Florida to employ Vaupen Financial Advisors, LLC as his investment banker. Vaupen's services will involve seeking, securing, and advising on a sale transaction, namely, the sale of a majority, if not all, of the Debtor's assets, on an expedited basis. The firm will be compensated as follows: -- Retainer for Financial Advisory Fees. The Trustee agrees to pay VFA a Retainer Fee of $10,000, payable upon approval of this retention by the Bankruptcy Court (the "Retainer Fee") for advisory services and marketing cost advances. While the Retainer Fee is non-refundable, it will be applied towards Transaction Fees upon closing. Pursuant to the terms of the Engagement Letter, the Retainer Fee shall be allocated $7,500.00 to financial advisory fees and $2,500.00 as an advance of marketing costs. -- Sale Transaction Fees. If during the Term of this Agreement, the Trustee enters into any agreement to sell all or substantially all of the Debtor's assets, and/or if VFA is successful in completing a sale of the Debtor's assets (collectively, a "Sales Transaction"), then the Trustee, on behalf of the Bankruptcy Estate shall pay to VFA, upon the Trustee's receipt of the Net Proceeds for such Sales Transaction, or at such other time as the Bankruptcy Court may order, a fee equal to the greater of: (a) seven percent of the Aggregate Consideration of the Sales Transaction; or (b) a Minimum Fee of $50,000, less the $10,000 Retainer Fee. Notwithstanding the above, and only in the cases where: (a) XXXXXXXX (and any Buyer entities in which he is the principal and control investor) and/or (b) the XXXXXXXX (and any related or affiliated entity) are the final Buyer of the Company and/or its assets, the Sales Transaction Fee would be computed as the sum of: (i) five percent of the first $1.2 million of the Aggregate Consideration, and (ii) seven percent of the Aggregate Consideration in excess of $1.2 million. For purposes of this paragraph, the term "Aggregate Consideration" means the value of the consideration to be paid to the Bankruptcy Estate in connection with a Sales Transaction, which shall be deemed to include the total Net Proceeds and assumption of any debt. "Net Proceeds" means, without duplication, (i) the net amount of cash and future cash consideration the Bankruptcy Estate receives in connection with a Sales Transaction, less any discounts; and (ii) any and all proceeds received on account of licenses, royalties, intangible assets and services, including any consideration for future contingent and non-contingent payments. For the avoidance of doubt, Net Proceeds excludes any and all cash and cash equivalents on hand. That portion of the Transaction Fee related to escrows associated with the definition of Aggregate Consideration above (contingent or otherwise) will be deemed earned and payable at the time of Closing, but Transaction Fees on future payments would be payable at the time of receipt of those payments pursuant to the applicable Sales Transaction Fee per 7(c). As disclosed in the court filings, Vaupen is a "disinterested person" within the meaning of section 101(14) of the Bankruptcy Code, and does not hold or represent an interest adverse to the Trustee or the Estate. The firm can be reached through: Hy Vaupen Vaupen Financial Advisors, LLC 201 S. Biscayne Blvd Suite 1205 Miami, FL 33131 Phone: (305) 379-1171 Email: hvaupen@vaupenfinancial.com About JDi Data Corporation JDi Data Corporation has developed innovative solutions for professionals within the insurance, risk, and legal communities. Its software solutions are designed to allow organizations to invest in tools that truly transform their day-to-day processes. The company is based in Fort Lauderdale, Fla. JDi Data sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 23-11322) on Feb. 17, 2022, with $1 million to $10 million in both assets and liabilities. John Heller, chief restructuring officer, signed the petition. Judge Scott M. Grossman oversees the case. Moffa & Bierman represents the Debtor as legal counsel. Scott N. Brown is the Chapter 11 trustee appointed in the Debtor's bankruptcy case. The trustee tapped Bast Amron, LLP as bankruptcy counsel; Bilzin Sumberg Baena Price & Axelrod, LLP as special counsel; and KapilaMukamal, LLP as accountant. JIM'S ALL SEASONS: Court OKs Interim Cash Collateral Access ----------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Ohio authorized Jim's All Seasons LLC to use the cash collateral of ODK Capital on an interim basis in accordance with the budget. The Debtor requires the use of cash collateral to continue its operations. ODK Capital claims a security interest in the Debtor's assets in the amount of $158,077. The Debtor disputes the validity of the alleged security interest because of an insufficient description of the collateral. As adequate protection, ODK is granted a replacement lien in the same property as it may have an existing security interest in the Debtor's assets and in the same relative priority as it existed prepetition, and as adequate protection for the use of the cash collateral to the extent of any diminution in the value of the cash collateral securing ODK's claims against the bankruptcy estate arising from the Debtor's use of cash collateral subject to any security interest of ODK after the petition date. Any replacement security interest granted is deemed perfected without necessity for the filing of the documents otherwise required under state law for the perfection of security interest. A copy of the order is available at https://urlcurt.com/u?l=efom00 from PacerMonitor.com. About Jim's All Seasons LLC Jim's All Seasons LLC provides tree care services. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ohio Case No. 23-11101) on April 6, 2023. In the petition signed by James Chapman, managing member, the Debtor disclosed $286,000 in assets and $1,237,922 in liabilities. Judge Jessica E. Price Smith oversees the case. Glenn E. Forbes, Esq., at Forbes Law LLC, represents the Debtor as legal counsel. JOHNSON'S ALL-SCAPES: Hires RLC Lawyers as Bankruptcy Counsel ------------------------------------------------------------- Johnson's All-scapes, LLC seeks approval from the U.S. Bankruptcy Court for the District of Maryland to employ George R. Roles, Esq. and RLC Lawyers & Consultants, LLC as bankruptcy counsel. The firm will render these services: a. provide legal advice to the Debtor in connection with the case and the continued possession and management of its property; b. prepare the Debtor's Statement of Financial Affairs, Schedules, and other statements, schedules, and filings required by the Bankruptcy Code, Bankruptcy Rules and/or Local Bankruptcy Rules; c. represent the Debtor in connection with any proceedings in this case, including motions for relief from stay in connection with this case; d. represent the Debtor at any meetings of creditors convened pursuant to Section 341 of the Bankruptcy Code and at any court hearings on applications, motions, answers, orders, reports and other legal papers as well as the provision of advice and assistance to and representation of the Debtor in preparing, filing and prosecuting responses thereto when necessary and if appropriate; e. represent the Debtor in collateral litigation before the Bankruptcy Court as necessary and if appropriate; and f. other legal services for the Debtor. The firm will be paid at these hourly rates: Senior Attorney $625 Associate Attorney $475 Paralegal $175 to $275 The firm received a retainer in the amount of $10,934.25. George Roles, Esq., an attorney at RLC Lawyers & Consultants, disclosed in a court filing that he is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: George R. Roles, Esq. RLC Lawyers & Consultants, LLC 8737 Brooks Dr., Ste. 107 Easton, MD 21601 Phone: 410-505-4150 Fax: 800-833-5692 Emai: george@rlcfirm.com groles@groleslaw.com About Johnson's All-scapes Johnson's All-scapes, LLC builds pools and patios. It also offers landscaping and fencing services. Johnson's All-scapes filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. D. Md. Case No. 23-13911) on June 2, 2023. In the petition signed by Thomas E. Johnson, Jr., managing member, the Debtor disclosed $1 million to $10 million in both assets and liabilities. George R. Roles, Esq., at RLC Lawyers & Consultants, LLC serves as the Debtor's counsel. LG TRUCKING: Wins Interim Cash Collateral Access ------------------------------------------------ The U.S. Bankruptcy Court for the Middle District of Alabama authorized LG Trucking, LLC to use cash collateral on an interim basis pending a final hearing set for July 18 at 1:30 p.m. The Debtor is permitted to provide adequate protection to its secured creditors in the form of a replacement lien to the extent the value of each secured creditor's lien is decreased by the Debtor-in-Possession's use of the cash collateral, pursuant to 11 U.S.C. section 361(2). As previously reported by the Troubled Company Reporter, the entities that acquired or may have acquired security interests in, among other property, the Debtor's cash and cash equivalents are Farmers and Merchants Bank, Alabama Department of Revenue, and Industree Logging, LLC. As of the Petition Date, the Debtor's account reflected that $31,567 was on deposit with Farmers and Merchants Bank. This amount takes into consideration a deposit that was made on the Petition Date. A copy of the order is available at https://urlcurt.com/u?l=NxatMN from PacerMonitor.com. About LG Trucking, LLC LG Trucking, LLC operates a timber harvesting and/or logging business in Lee County, Alabama. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Ala. Case No. 23-80613) on June 9, 2023. In the petition signed by Grady Holmes, Jr., member, the Debtor disclosed up to $1 million in assets and up to $10 million in liabilities. Judge Christopher L. Hawkins oversees the case. Anthony Bush, Esq., at The Bush Law Firm, LLC, represents the Debtor as legal counsel. LGID NY: Seeks to Hire Charles Silver as Real Estate Counsel ------------------------------------------------------------ LGID NY, LLC seeks approval from the U.S. Bankruptcy Court for the Eastern District of New York to employ the Law Office of Charles S. Silver as its special real estate counsel. The Debtor needs a special counsel in connection with real estate transactions that are likely to arise during this Chapter 11 case. The firm will be paid at an hourly rate of $350 plus reimbursement for expenses incurred. Charles Silver, Esq., disclosed in a court filing that his firm is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Charles S. Silver, Esq. Law Office of Charles S. Silver 2505 Main Street, Suite 209A Stratford, CT 06615 Telephone: (203) 378-9900 About LGID NY LGID NY, LLC, a company in Brooklyn, N.Y., filed its voluntary petition for Chapter 11 protection (Bankr. E.D.N.Y. Case No. 22-43171) on Dec. 21, 2022, with $1 million to $10 million in assets and $500,000 to $1 million in liabilities. Judge Elizabeth S. Stong oversees the case. The Debtor tapped Joel M. Shafferman, Esq., at Shafferman & Feldman, LLP as legal counsel and the Law Office of Charles S. Silver as special real estate counsel. LIFESIZE INC: Seeks to Tap Pachulski Stang Ziehl & Jones as Counsel ------------------------------------------------------------------- Lifesize, Inc. and its affiliates seek approval from the U.S. Bankruptcy Court for the Southern District of Texas to employ Pachulski Stang Ziehl & Jones, LLP as their legal counsel. The firm will render these services: (a) assist, advise, and represent the Debtors in their consultations with estate constituents regarding the administration of these Chapter 11 cases; (b) assist, advise, and represent the Debtors in any manner relevant to the Debtors' financing needs, asset dispositions, and leases and other contractual obligations; (c) assist, advise, and represent the Debtors in any issues associated with the acts, conduct, assets, liabilities, and financial condition of the Debtors; (d) assist, advise, and represent the Debtors in the negotiation, formulation, and drafting of any plan of reorganization and disclosure statement; (e) assist, advise, and represent the Debtors in the performance of their duties and the exercise of their powers under the Bankruptcy Code, the Bankruptcy Rules, and any applicable local rules and guidelines; and (f) provide such other necessary advice and services as the Debtors may require in connection with these Chapter 11 cases. The hourly rates of the firm's counsel and staff are as follows: Partners $895 - $1,995 Of Counsel $875 - $1,525 Associates $725 - $895 Paraprofessionals $425 - $595 In addition, the firm will seek reimbursement for expenses incurred. Prior to the petition date, the firm received a retainer in the amount of $716,913.05 from the Debtors in connection with its prepetition services. The firm provided the following information in response to the request for additional information set forth in Paragraph D.1 of the Fee Guidelines. Question: Did you agree to any variations from, or alternatives to, your standard or customary billing arrangements for this engagement? Response: No. Question: Do any of the professionals included in this engagement vary their rate based on the geographic location of the bankruptcy case? Response: No. Question: If you represented the client in the 12 months prepetition, disclose your billing rates and material financial terms for the prepetition engagement, including any adjustments or discounts offered during the 12 months prepetition. If your billing rates and material financial terms have changed post-petition, explain the difference and the reasons for the difference. Response: The material financial terms for the prepetition engagement remained the same as the engagement was hourly-based. The billing rates and material financial terms for the postpetition period remain the same as the prepetition period. The standard hourly rates of the firm are subject to periodic adjustment in accordance with the firm's practice. Question: Has your client approved your prospective budget and staffing plan, and, if so, for what budget period? Response: The Debtors and the firm have discussed an anticipated budget for these Chapter 11 cases. Jeffrey Pomerantz, Esq., a partner at Pachulski Stang Ziehl & Jones, disclosed in a court filing that the firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Jeffrey N. Pomerantz, Esq. Pachulski Stang Ziehl & Jones LLP 440 Louisiana Street, Suite 900 Houston, TX 77002 Telephone: (713) 691-9385 Facsimile: (713) 691-9407 Email: jpomerantz@pszjlaw.com About Lifesize Inc. Lifesize, Inc. is a cloud communications company in Laredo, Texas, which offers contact center and video meeting solutions for businesses. Lifesize and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Texas Lead Case No. 23-50038) on May 16, 2023. At the time of the filing, Lifesize reported $10 million to $50 million in assets and $100 million to $500 million in liabilities. Judge David R. Jones oversees the cases. The Debtors tapped Pachulski Stang Ziehl & Jones, LLP as legal counsel and FTI Consulting, Inc. as financial advisor. Kurtzman Carson Consultants, LLC is the claims, noticing and solicitation agent and administrative advisor. MADERA COMMUNITY: Wins Cash Collateral Access Thru July 14 ---------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of California, Fresno Division, authorized Madera Community Hospital to use cash collateral on an interim basis in accordance with the budget, through July 14, 2023. The Debtor is directed to pay Saint Agnes Medical Center $500,000 and grant adequate protection to the Secured Creditor on an interim basis in the form of replacement liens to the extent necessary to protect the Secured Creditor from a diminution in value of its collateral. A further hearing set for July 11 at 9:30 a.m. A copy of the Court's order and the Debtor's budget is available at https://urlcurt.com/u?l=zntiRR from PacerMonitor.com. The Debtor projects total expenses, on a weekly basis, as follows: $31,625 for the week ending June 17, 2023; $475,047 for the week ending June 24, 2023; $209,624 for the week ending July 1, 2023; and $93,335 for the week ending July 8, 2023. About Madera Community Hospital Madera Community Hospital operates a general medical and surgical hospital in Madera, Calif. Madera Community Hospital sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Calif. Case No. 23-10457) on March 10, 2023. In the petition signed by its chief executive officer, Karen Paolinelli, the Debtor disclosed $50 million to $100 million in assets and $10 million to $50 million in liabilities. Judge Rene Lastreto II oversees the case. The Debtor tapped Riley C. Walter, Esq., at Wanger Jones Helsley, as bankruptcy counsel; McCormick Barstow LLP and Ward Legal, Inc. as special counsels; and JWT & Associates, LLP as accountant. The U.S. Trustee for Region 17 appointed an official committee of unsecured creditors in the Debtor's Chapter 11 case. The committee tapped Perkins Coie, LLP and Sills Cummis & Gross PC as legal counsels and FTI Consulting, Inc. as financial advisor. MALLINCKRODT PLC: Gets Delay of $200M Opioid Payment ---------------------------------------------------- Mallinckrodt Plc struck a deal to delay until June 30, 2023, a $200 million opioid settlement payment originally due Friday, June 16, 2023, as it continues evaluating options to restructure its balance sheet. According to a regulatory filing, the Board of Directors of Mallinckrodt plc is engaged in discussions with various stakeholders, including parties holding substantial positions across the Company's capital structure and representatives of the Opioid Master Disbursement Trust II (the "Trust"). The Board is actively evaluating the Company's capital needs in light of its obligations under its opioid settlement and its long-term debt, and is considering options, including transactions that have been proposed by holders of various series of the Company’s indebtedness and other Company stakeholders, as well as the viewpoints of various parties in interest. In connection with these ongoing discussions, on June 15, 2023, the Company, certain subsidiaries of the Company and the Trust (collectively, the "Parties") entered into Amendment No. 1 to that certain Opioid Deferred Cash Payments Agreement, dated as of June 16, 2022, among the Parties (the "Opioid Deferred Cash Payments Agreement"). The Amendment extended to June 23, 2023, from June 16, 2023, the date on which a $200 million payment is required to be made to the Trust. On June 22, 2023, pursuant to the Amendment, the Trust provided written notice that it was further extending the due date of the Opioid Deferred Cash Payment from June 23, 2023 to June 30, 2023. The Company recognizes the important role of the Trust in helping to address the nation's opioid crisis and fund addiction treatment and related efforts. Under the Opioid Deferred Cash Payments Agreement, which was originally entered into by the Parties upon the Company's emergence from bankruptcy on June 16, 2022, the Company and certain of its subsidiaries agreed to make certain deferred payments to the Trust, including a $450 million payment that was paid on the Effective Date. The Company said in the June 23 filing with the SEC that it continues to analyze its situation and engage with various stakeholders, including representatives of the Trust. There can be no assurance of the outcome of this process, including whether or not the Company may make a filing in the near term or later under the U.S. Bankruptcy Code or analogous foreign bankruptcy or insolvency laws. About Mallinckrodt PLC Mallinckrodt -- http://www.mallinckrodt.com/-- is a global business consisting of multiple wholly-owned subsidiaries that develop, manufacture, market and distribute specialty pharmaceutical products and therapies. The company's Specialty Brands reportable segment's areas of focus include autoimmune and rare diseases in specialty areas like neurology, rheumatology, nephrology, pulmonology and ophthalmology; immunotherapy and neonatal respiratory critical care therapies; analgesics; and gastrointestinal products. Its Specialty Generics reportable segment includes specialty generic drugs and active pharmaceutical ingredients. On Oct. 12, 2020, Mallinckrodt plc and certain of its affiliates sought Chapter 11 protection in Delaware (Bankr. D. Del. Lead Case No. 20-12522) to seek approval of a restructuring that would reduce total debt by $1.3 billion and resolve opioid-related claims against them. Mallinckrodt plc disclosed $9,584,626,122 in assets and $8,647,811,427 in liabilities as of Sept. 25, 2020. Judge John T. Dorsey oversees the cases. The Debtors tapped Latham & Watkins, LLP and Richards, Layton & Finger, P.A. as their bankruptcy counsel; Arthur Cox and Wachtell, Lipton, Rosen & Katz as corporate and finance counsel; Ropes & Gray, LLP as litigation counsel; Torys, LLP as CCAA counsel; Guggenheim Securities, LLC as investment banker; and AlixPartners, LLP as restructuring advisor. Prime Clerk, LLC is the claims agent. The official committee of unsecured creditors retained Cooley, LLP, as its legal counsel; Robinson & Cole, LLP as co-counsel; and Dundon Advisers, LLC as financial advisor. On Oct. 27, 2020, the U.S. Trustee for Region 3 appointed an official committee of opioid-related claimants. The OCC tapped Akin Gump Strauss Hauer & Feld, LLP as its lead counsel; Cole Schotz as Delaware co-counsel; Province, Inc. as financial advisor; and Jefferies, LLC as investment banker. * * * Mallinckrodt plc on June 16, 2022, announced it has successfully completed its reorganization process, emerged from Chapter 11 and completed the Irish Examinership proceedings. Implementing the Plan and the Scheme strengthens the Company's balance sheet, reduces its total debt by approximately $1.3 billion and enables it to move forward with more than $250 million in cash and cash equivalents on hand. The Plan and Scheme include key legal settlements that resolve opioid claims brought against the Company and litigation matters involving Acthar Gel, among other claims, and provides for significant equitization of the Company's guaranteed unsecured notes. MASTERS III: Files Emergency Bid to Use Cash Collateral ------------------------------------------------------- Masters III LLC asks the U.S. Bankruptcy Court for the Southern District of Florida, West Palm Beach Division, for authority to use cash collateral in accordance with the budget, with a 10% variance. The Debtor requires the use of cash collateral to continue its operations. The U.S. Small Business Administration may claim a secured lien interest in, inter alia, the Debtor's cash and accounts receivable by virtue of the filing of a UCC-1 on June 29, 2020, and on August 8, 2020, identifying Haley Ryan LLC as the creditor relative to a loan of $150,000. The SBA is owed about $173,000 on that loan. The SBA loaned the Debtor $425,000 on July 9, 2021, indicating that it was modifying the Haley Ryan loan, but did not file a corresponding, or recognizable, UCC-1. Wellen Capital LLC may claim a secured lien interest in, inter alia, the Debtor's cash and accounts receivable by virtue of the filing of a UCC-1 on May 14, 2020. Wellen is owed about $63,000 in connection with a small business loan executed by the Debtor in 2017 and under a stipulation for settlement dated October 21, 2021. As adequate protection, the SBA and Wellen will be granted replacement liens on the Debtor's accounts receivable, in the same priority and extent as any creditor held a valid, perfected lien prior to the filing of the Chapter 11 case. A copy of the Debtor's motion and budget is available at https://urlcurt.com/u?l=1nZeDq from PacerMonitor.com. About Masters III LLC Masters III LLC operates a series of tanning salons. It owns a wholly owned subsidiary entity named Haley Ryan LLC. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 23-14750) on June 19, 2023. In the petition signed by Stanley Olszewski, managing member, the Debtor disclosed $118,372 in assets and $1,072,897 in liabilities. Julianne Frank, Esq., represents the Debtor as legal counsel. MESA TERRACE: August 2 Plan Confirmation Hearing Set ---------------------------------------------------- On June 13, 2023, Mesa Terrace Condominium Association filed with the U.S. Bankruptcy Court for the District of Arizona an Amended Subchapter V Plan of Reorganization. On June 20, 2023, Judge Brenda Moody Whinery ordered that: * August 2, 2023, at 10:00 a.m. is the hearing to consider whether to confirm the Plan. * July 26, 2023 is the deadline for any party desiring to object to confirmation of the Plan to file a written objection with the Court. * July 26, 2023 is the deadline for any creditor desiring to vote for or against confirmation of the Plan to complete and sign a Ballot. * The Debtor shall file a ballot report no later than 3 business days prior to the Confirmation Hearing. A copy of the order dated June 20, 2023 is available at https://urlcurt.com/u?l=k3WiCJ from PacerMonitor.com at no charge. Attorneys for Debtor: Anthony W. Austin, Esq. Heather Macre, Esq. Jason K. Thomas, Esq. Fennemore Craig, P.C. 2394 E. Camelback Rd., Suite 600 Phoenix, AZ 85016 Tel: (602) 916-5000 Email: aaustin@fennemorelaw.com About Mesa Terrace Condominium Association Mesa Terrace Condominium Association filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. D. Ariz. Case No. 22-04590) on July 14, 2022, with up to $1 million in both assets and liabilities. Michael W. Carmel has been appointed as Subchapter V trustee. Judge Brenda Moody Whinery oversees the case. D. Lamar Hawkins, Esq., at Guidant Law, PLC and Vial Fotheringham, LLP serve as the Debtor's bankruptcy counsel and special counsel, respectively. MICKEYS SPORTS: Files Emergency Bid to Use Cash Collateral ---------------------------------------------------------- Mickeys Sports Bar and Grill, LLC asks the U.S. Bankruptcy Court for the Northern District of Texas, Dallas Division, for authority to use cash collateral. The Debtor requires the use of cash collateral to continue its operations. The Debtor has an immediate need to use the cash collateral of Delta Bridge Funding, the Debtor's secured creditor claiming liens on the Debtor's personal property including cash and accounts. The Debtor can adequately protect the interests of the Secured Lender as set forth in the proposed Interim Order for Use of Cash Collateral by providing the Secured Lender with post-petition liens, a priority claim in the Chapter 11 bankruptcy case, and cash flow payments. A copy of the motion is available at https://urlcurt.com/u?l=Z8ibo8 from PacerMonitor.com. A copy of the budget is available at https://urlcurt.com/u?l=Pe8z3o from PacerMonitor.com. The Debtor projects $80,000 in gross revenue and $77,754 in total expenses. About Mickeys Sports Bar and Grill, LLC Mickeys Sports Bar and Grill, LLC operates a sports bar and restaurant. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 23-31228-mvl11) on June 12, 2023. In the petition signed by Phillip Madison, owner, the Debtor disclosed up to $50,000 in assets and up to $1 million in liabilities. Joyce W. Lindauer, Esq, at Joyce W. Lindauer Attorney, PLLC, represents the Debtor as legal counsel. MONITRONICS INT'L: Hearing on Plan & Disclosures June 26 -------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Texas will hold a hearing on June 26, 2023, at 1:00 p.m. (Prevailing Central Time) to consider approval of the disclosure statement explaining the partial prepackaged Chapter 11 plan of reorganization of Monitronics International Inc. and its debtor-affiliates. According to the Troubled Company Reporter on May 31, 2023, as a result of discussions with certain of their key creditor and shareholder constituencies, the Debtors have entered into the Restructuring Support Agreement, with (i) certain senior secured term and relvolving loan lenders (the "Consenting 2019 Exit Facility Lenders") under that certain Senior Secured Credit Agreement, dated as of August 30, 2019, by and among Monitronics, as borrower, and Encina Private Credit SPV, LLC ("Encina"), as administrative agent, and the lenders party thereto from time to time (as amended, restated, modified, supplemented, or replaced from time to time in accordance with the terms thereof, the "2019 Exit Facility Credit Agreement"), (ii) certain prepetition term loan lenders (the "Consenting 2019 Takeback Term Loan Lenders" and, together with the Consenting 2019 Exit Facility Lenders, the "Consenting Lenders") under that certain Loan Agreement, dated as of August 30, 2019, by and among Monitronics, as borrower, and Cortland Capital Market Services LLC ("Cortland"), as administrative agent, and the lenders party thereto from time to time (as amended, restated, modified, supplemented, or replaced from time to time in accordance with the terms thereof, the "2019 Takeback Term Loan Credit Agreement"), and (iii) certain Holders of existing equity interests in Monitronics ("Monitronics Equity Interests" and, those party to the Restructuring Support Agreement, the "Consenting Shareholders") along with the Debtors, collectively, the "Restructuring Support Parties"). The Restructuring contemplates the following transactions: * Pursuant to the Plan, a reduction of the Debtors' pro forma total debt from approximately $1.09 billion as of the Petition Date to $600 million upon emergence under a new term loan credit facility (the "New Exit Facility") as described herein; * Under the Plan, the Debtors' stakeholders receive treatment as follows: - Each Holder of claims under the 2019 Takeback Term Loan Credit Agreement (the "2019 Takeback Term Loan Claims") totaling approximately $794 million in principal amount as of May 9, 2023, will receive (a) its pro rata share of Equity Subscription Rights to subscribe for and purchase New Common Equity pursuant to the Equity Rights Offering in accordance with the Rights Offering Procedures as further described herein, (b) its pro rata share of Debt Funding Rights to fund New Exit First-Out Term Loans pursuant to the Debt Rights Offering in accordance with the Rights Offering Procedures as further described herein, (c) its pro rata share of 100% of the New Common Equity, subject to dilution by New Common Equity issued pursuant to the Equity Rights Offering (including the Backstop Commitment Agreement), Class 7 Equity Elections, and the Post-Emergence Incentive Plan, and (d) New Exit Facility Term Loans in principal amount equal to its pro rata share of the Distributable New Exit Facility Amount, distributed in the form of either New Exit First-Out Term Loans or New Exit Second-Out Term Loans based upon participation in the Equity Rights Offering and Debt Rights Offering; - Claims under the 2019 Exit Facility Credit Agreement (the "2019 Exit Facility Claims") will be repaid in full in Cash with the proceeds of the DIP Facility; - Other Secured Claims, General Unsecured Claims, Intercompany Claims, and Affiliate Equity Interests in any Monitronics Subsidiary are Unimpaired by the Plan as further described herein; and - Each Holder of Monitronics Equity Interests will receive either (a) its pro rata share of $3,000,000 (the "Class 7 Cash Pool") or (b) solely to the extent that such Holder timely and validly makes the Class 7 Equity Election on the Class 7 Equity Election Form, such Holder's pro rata share of 4.65% of the New Common Equity to be issued and outstanding as of the Effective Date, subject to dilution by New Common Equity issued pursuant to the Post-Emergence Incentive Plan (the "Class 7 Equity Pool"). * The Debtors will enter into a superpriority secured postpetition debtor-in-possession financing facility (the "DIP Facility" and, the lenders thereunder, the "DIP Lenders"), participation in which shall be offered to all Consenting 2019 Takeback Term Loan Lenders and backstopped by the Ad Hoc Lender Group (as defined below), in an aggregate principal amount of $398,610,000 (inclusive of upfront fees paid-in-kind), the proceeds of which will be used to refinance the 2019 Exit Facility Claims, pay certain fees associated with the closing of the DIP Facility and to provide liquidity to the Debtors' balance sheet, and which will consist of (a) Tranche A DIP Facility Term Loans in an aggregate principal amount of approximately $299 million and (b) Tranche B DIP Facility Term Loans in an aggregate principal amount of $100 million, in each case, on the terms and conditions set forth in the DIP Facility Loan Documents (as defined in the Plan) and which will receive the following treatment under the Plan on the Effective Date: - All accrued and unpaid interest on the DIP Facility Term Loans shall be paid in Cash; - Each DIP Facility Lender may elect to (i) apply such DIP Facility Lender's Tranche A DIP Term Loans and Exit Fee (as defined in the DIP Credit Agreement) to its funding obligations in respect of the Debt Rights Offering and/or (ii) apply such DIP Facility Lender's Tranche B DIP Term Loans to its funding obligations in respect of the Equity Rights Offering (including Backstop Commitments), in each case, in accordance with the Plan and the Rights Offering Procedures; - All outstanding principal amounts on account of the Tranche A DIP Term Loans and the Exit Fee, after giving effect to the application of amounts in satisfaction of the Debt Rights Offering funding obligations described above, shall be repaid in Cash from a pro rata share of 100% of the Cash proceeds of the Debt Rights Offering, with any remaining unpaid amounts to be converted into an equivalent principal amount of New Exit First-Out Term Loans; and - All outstanding principal amounts on account of the Tranche B DIP Term Loans, after giving effect to the application of amounts in satisfaction of Equity Rights Offering funding obligations described above, shall be repaid in full in Cash from the Cash proceeds of the Equity Rights Offering and other available Cash; * The Debtors will commence an offering (the "Equity Rights Offering") of subscription rights (the "Equity Subscription Rights") to purchase, in the aggregate, 69.44% of the total units of New Common Equity to be issued and outstanding as of the Effective Date, subject to dilution by the Post-Emergence Incentive Plan (as defined in the Plan), for an aggregate purchase price of $100 million, participation in which will be available to all Holders of 2019 Takeback Term Loan Claims who participate in the Debt Rights Offering (and as otherwise provided in the Rights Offering Procedures and the Plan), and which will be backstopped by the Ad Hoc Lender Group, in accordance with the terms and conditions set forth in the Restructuring Support Agreement and the Backstop Commitment Agreement (attached hereto as Exhibit C); and * The Debtors will commence an offering (the "Debt Rights Offering") of rights ("Debt Funding Rights") to fund New Exit First-Out Term Loans in the aggregate principal amount of $301,596,100, participation in which will be available to all Holders of 2019 Takeback Term Loan Claims. The Restructuring proposed by the Debtors will provide substantial benefits to the Debtors and all of their stakeholders. The Restructuring will leave the Debtors' businesses intact and substantially de-levered, providing for the reduction of approximately $500 million of debt upon emergence. This de-leveraging will enhance the Debtors' long-term growth prospects and competitive position and allow the Debtors to emerge from the Chapter 11 Cases as reorganized entities better positioned to withstand the competitive security and alarm services industry. In addition, the Restructuring will allow the Debtors' management team to focus on operational performance and value creation. A significantly improved balance sheet will provide the Reorganized Debtors with increased financial flexibility and the ability to pursue value maximizing opportunities that will strengthen the Reorganized Debtors' customer product and service offerings. Moreover, the Restructuring proposed under the Plan provides recoveries to all of the Debtors' stakeholders. As set forth below, the Plan provides for a recovery to each class of non-Affiliate Claims and Equity Interests in the form of Cash, debt, or equity, rights to participate in new money debt and equity investments, or a combination thereof. Distributions of equity in Reorganized Monitronics will allow certain creditors and equityholders (at their election) to participate in potential future upside in Reorganized Monitronics. Consummating the Restructuring in a timely manner, however, is of critical importance. A swift and efficient chapter 11 process is necessary in order for the Debtors to maintain their customer base and relationships with dealers and other vendors. Moreover, the pre-packaged bankruptcy process contemplated under the Plan preserves value for all stakeholders while minimizing restructuring costs and delays. Management's focus can then turn from balance sheet management towards operational performance and value creation. Failure to timely consummate the Plan, however, will likely result in many Holders of Claims and Equity Interests of the Debtors receiving little or no value on account of their Claims or Equity Interests. The Debtors anticipate commencing the Chapter 11 Cases on or about May 15, 2023, and emerging from the chapter 11 process approximately 46 days thereafter. Under the Plan, holders of Class 4 General Unsecured Claims will receive either, in the discretion of the Debtors (with the reasonable consent of the Required Consenting Lenders), (i) payment in full in Cash, or (ii) such other treatment as to render such Holder Unimpaired; provided, however, that no Holder of an Allowed General Unsecured Claim shall receive any distribution for any Claim that has previously been satisfied pursuant to a Final Order of the Bankruptcy Court. Creditors will recover 100% of their claims. Class 4 is unimpaired. All consideration necessary for the Debtors and/or Reorganized Debtors, as applicable, to make payments or distributions pursuant to the Plan shall be obtained from Cash from the Debtors and/or Reorganized Debtors, as applicable, including Cash from business operations and the proceeds of the New Exit Facility, the Equity Rights Offering, the Debt Rights Offering, and/or the Backstop Commitments, as applicable. Further, the Debtors and the Reorganized Debtors will be entitled to transfer funds between and among themselves as they determine to be necessary or appropriate to enable the Reorganized Debtors to satisfy their obligations under the Plan. Except as set forth in the Plan, any changes in intercompany account balances resulting from such transfers will be accounted for and settled in accordance with the Debtors' historical intercompany account settlement practices and will not violate the terms of the Plan. A copy of the Disclosure Statement dated May 17, 2023, is available at bit.ly/3InetC0 from Kroll, the claims agent. About Monitronics International Monitronics International, Inc. provides residential and commercial customers with monitored home and business security systems, as well as interactive and home automation services. Monitronics International and its affiliates filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Texas Lead Case No. 23-90332) on May 15, 2023. In the petitions signed by its chief executive officer, William E. Niles, Monitronics International disclosed $1 billion to $10 billion in both assets and liabilities. Judge Christopher M. Lopez oversees the cases. The Debtors tapped Hunton Andrews Kurth, LLP and Latham & Watkins, LLP as legal counsels; Alvarez & Marsal North America, LLC as financial advisor; PJT Partners, LP as investment banker; and KPMG, LLP as tax consultant. Kroll Restructuring Administration, LLC is the claims, noticing, and solicitation agent. MOUNTAIN EXPRESS: Taps Axinn Veltrop & Harkrider as Special Counsel ------------------------------------------------------------------- Mountain Express Oil Company and its affiliates seek approval from the U.S. Bankruptcy Court for the Southern District of Texas to employ Axinn, Veltrop & Harkrider, LLP as special antitrust counsel. The Debtors need a special counsel to provide antitrust counseling and related legal advice to the Debtors related to one or more transactions occurring during the pendency of the Chapter 11 cases. The hourly rates of the firm's counsel and staff, subject to a 10 percent courtesy discount, are as follows: Partners $1,485 - $1,845 Associates $880 - $1,265 Paraprofessionals $360 In addition, the firm will seek reimbursement for expenses incurred. The firm provided the following in response to the request for additional information set forth in Paragraph D.1 of the U.S. Trustee Guidelines: Question: Did you agree to any variations from, or alternatives to, its standard billing arrangements for this engagement? Answer: Yes, Axinn provided the Debtors a 10 percent courtesy discount on their customary hourly rates. Question: Do any of the professionals in this engagement vary their rate based on the geographic location of the bankruptcy case? Answer: No. Question: If you represented the Debtors in the 12 months prepetition, disclose your billing rates and material financial terms for the prepetition engagement, including any adjustments during the 12 months prepetition. If its billing rates and material financial terms have changed post-petition, explain the difference and the reasons for the difference. Answer: N/A Question: Has your client approved your prospective budget and staffing plan, and, if so, for what budget period? Answer: The Debtors and Axinn have discussed an anticipated budget for these Chapter 11 cases. Jeny Maier, Esq., a partner at Axinn, Veltrop & Harkrider, disclosed in a court filing that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. The firm can be reached through: Jeny M. Maier, Esq. Axinn, Veltrop & Harkrider LLP 1901 L. Street NW Washington, DC 20036 Telephone: (202) 912-4700 Facsimile: (202) 912-4701 Email: jmaier@axinn.com About Mountain Express Oil Company Mountain Express Oil Company operates in the fuel distribution and retail convenience industry. As one of the largest fuel distributors in the American South, the company and its affiliates serve 828 fueling centers and 27 travel centers across 27 states. Mountain Express Oil Company and its affiliates sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Texas Lead Case No. 23-90147) on March 18, 2023. In the petition signed by its chief restructuring officer, Michael Healy, Mountain Express Oil Company disclosed $100 million to $500 million in both assets and liabilities. Judge David R. Jones oversees the cases. Pachulski Stang Ziehl & Jones, LLP represents the Debtors as bankruptcy counsel. The Debtors also tapped Raymond James Financial, Inc. as investment banker; FTI Consulting, Inc. as financial advisor; and Axinn, Veltrop & Harkrider LLP as special antitrust counsel. Michael Healy, senior managing director at FTI, serves as the Debtors' chief restructuring officer. Kurtzman Carson Consultants, LLC is the claims, noticing and solicitation agent and administrative advisor. 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 Marcus Helt, Esq. MOXI ENTERPRISES: Ruediger Mueller Named Subchapter V Trustee ------------------------------------------------------------- The U.S. Trustee for Region 21 appointed Ruediger Mueller of TCMI, Inc. as Subchapter V trustee for Moxi Enterprises, LLC. Mr. Mueller 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. Mueller declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Ruediger Mueller TCMI, Inc. 1112 Watson Court Reunion, Florida 34747 Email: truste@tcmius.com About Moxi Enterprises Moxi Enterprises, LLC filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 23-02420) on June 12, 2023, with $500,001 to $1 million in assets and $1 million to $10 million in liabilities. Kevin P Farrell, chief executive officer, signed the petition. Judge Roberta A. Colton oversees the case. Alberto F. Gomez, Jr., Esq., at Johnson, Pope, Bokor, Ruppel and Burns, LLP, represents the Debtor as legal counsel. NAKED JUICE: MetWest FRI Marks $2.1M Loan at 23% Off ---------------------------------------------------- Metropolitan West Fund's Floating Rate Income Fund has marked its $2,100,000 loan extended to Naked Juice, LLC to market at $1,609,996 or 77% of the outstanding amount, as of March 31, 2023, according to a disclosure contained in the MetWest Fund's Form N-CSR for the Fiscal year ended March 31, 2023, filed with the Securities and Exchange Commission. Floating Rate Income Fund is a participant in a First Lien Term Loan (SOFR plus 6%) to Naked Juice, LLC. The loan accrues interest at a rate of 11% per annum. The loan matures on January 24, 2030. The Metropolitan West Funds is an open-end management investment company organized as a Delaware statutory trust on December 9, 1996 and registered under the Investment Company Act of 1940, as amended. Metropolitan West Asset Management, LLC, a federally registered investment adviser, provides the Funds with investment management services. The Trust currently consists of 14 separate portfolios. Naked Juice LLC is the entity resulting from a spin-off from PepsiCo, with PAI Partners owning 61% and Pepsi retaining a 39% stake. Naked Juice, LLC owns the Tropicana, Naked Juice, KeVita and other select juice brands. NARKE ASHSTREET: Files for Chapter 11; Owners Seek Dismissal ------------------------------------------------------------ Narke Ashstreet LLC filed for chapter 11 protection in the Middle District of Florida. The petition was filed by Lamogh Karney, as member/manager. The Debtor elected on its voluntary petition to proceed under Subchapter V of chapter 11 of the Bankruptcy Code. Pbarke LLC, KS-ASH185D LLC, Ashstreetnest LLC, Ashstreetpb LLC, Alphalux Capital LLC, Nirmal Gorla, Ash Bravan Group LLC, and Clerisy Inc. -- claiming to be members of the "The Debtor Ownership Group" -- filed a motion to immediately dismiss the Chapter 11 case. According to the Debtor Ownership Group, the Debtor was formed on Dec. 18, 2020, when it filed a certificate of organization of a limited liability company. On March 25, 2021, the Debtor Ownership Group executed the Limited Liability Company Operating Agreement of Narke Ashstreet. At the time of OA was executed, the owners of the Debtor were: a. Pbarke LLC, which owns 21.459% of the Debtor; b. KS-ASH185D LLC, which owns 20.408% of the Debtor; c. Ashstreetnest LLC, which owns 09.286% of the Debtor; d. Ashstreetpb LLC, which owns 12.449% of the Debtor; e. Alphalux Capital LLC, which owns 04.743% of the Debtor; f. Nirmal Gorla, who owns 11.00% of the Debtor; g. Ash Bravan Group LLC, which owns 18.635% of the Debtor; and h. Clerisy Inc., which owns 01.020% of the Debtor. The ownership structure of the Debtor has not changed since the execution of the OA and remains the same as of today's date. On June 5, 2023, unbeknownst to the Debtor Ownership Group, the Debtor filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Nebraska. To initiate this case, the Debtor filed a Petition signed by Mr. Amogh Karney, who holds himself out as a Member/Manager of the Debtor. The Petition was electronically signed by Mr. Karney under penalty of perjury. However, the Ownership Group points out, Mr. Karney is neither a member nor manager of the Debtor; nor is he a member or manager of any of the Debtor's members. In other words, Mr. Karney is an interloper who has lied to this Court, filed false documents, and placed the Debtor into bankruptcy without authorization or authority from the Debtor's owners. Therefore, the Debtor Ownership Group now seeks to dismiss this instant Chapter 11 Case pursuant to 11 U.S.C. Sec. 1112(b). A telehonic meeting of creditors under 11 U.S.C. Section 341(a) is slated for July 20, 2023 at 3:00 p.m. About Narke Ashstreet Narke Ashstreet LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Neb. Case No. 23-80432) on June 6, 2023. In the petition filed by Lamogh Karney, as member/manager, the Debtor reports estimated assets of $10 million to $50 million, and liabilities between $1 million and $10 million. The case is overseen by Honorable Bankruptcy Judge Thomas L Saladino. The Debtor is represented by: Patrick Patino, Esq. Patino King LLC 3913 S 184th St Omaha, NE 68130 Tel: 404-584-1238 Email: wrountree@rlkglaw.com NATIONAL CINEMEDIA: Deal With Cineworld Gets Court Approval ----------------------------------------------------------- Amelia Pollard of Bloomberg Law reports that movie theater advertising firm National CineMediareceived court approval for its long-fought contract with Cineworld Group Plc, the parent company of Regal Cinemas, bringing the company a step closer to exiting bankruptcy. "This was just an amazing result on behalf of this debtor given what it was facing," US Bankruptcy Judge David R. Jones said during a hearing on Thursday, June 15, 2023, referring to the deal he approved. Cineworld is scheduled separately to seek court approval in its own Chapter 11 proceedings on Friday, June 16, 2023. Competitors AMC Entertainment and Cinemark objected to the agreement, insisting that it breached the so-called "most-favored-nations" provision. New Long Term Agreement National CineMedia, LLC ("NCM"), the largest cinema advertising network in the United States, and Regal Cinemas, Inc., on June 5, 2023, announced their entry into a new long-term Network Affiliate Transaction Agreement. "The agreement we announced today strengthens and deepens NCM's 20-year relationship with Regal Cinemas well into the future and reaffirms our position as the market leader and premier company in cinema advertising," said Tom Lesinski, CEO of NCM. "With the largest share of the young, diverse, and sought-after movie audience, NCM will deliver our impactful advertising solutions to brands across thousands of Regal Cinema screens in the United States." Through the Agreement, NCM acquires the exclusive right to provide on-screen advertisements at Regal Cinemas' over 6,000 screens and 450 theaters. NCM will run its industry leading Noovie show, featuring hundreds of national, regional, and local advertisers, as well as the high impact Platinum ad unit within the trailers, on Regal Cinemas' screens across the United States. The new ten-year Agreement will replace the previous Exhibitor Service Agreement with Regal Cinemas. This Agreement represents a major milestone in the NCM’s restructuring and culminates its successful mediation with Regal Cinemas. About Cineworld Group London-based Cineworld Group PLC was founded in 1995 and is the world's second-largest cinema chain. Cineworld operates 751 sites with 9,000 screens in 10 countries, including the Cineworld and Picturehouse screens in the UK and Ireland, Yes Planet in Israel, and Regal Cinemas in the United States. According to The Guardian, the Griedinger family, including Mooky's brother and deputy chief executive, Israel, have struggled to maintain control of the ailing business but have been forced to reduce their stake from 28% in recent years. Cineworld's top five investors include the Chinese Jangho Group (13.8%), Polaris Capital Management (7.82%), Aberdeen Standard Investments (4.98%) and Aviva Investors (4.88%). The London-listed Cineworld, which has run up debt of more than $4.8 billion after losses soared during the pandemic, is pinning its hopes on a meatier slate of movies in 2022 to bounce back from a two-year lull. Cineworld Group plc and 104 affiliates sought Chapter 11 protection (Bankr. S.D. Texas Lead Case No. 22-90168) on Sept. 7, 2022, estimating more than $1 billion in assets and debt. Judge Marvin Isgur oversees the cases. The Debtors tapped Kirkland & Ellis, LLP and Jackson Walker, LLP as bankruptcy counsels; PJT Partners, LP as investment banker; AlixPartners, LLP as restructuring advisor; and Ernst & Young, LLP as tax services provider. Kroll Restructuring Administration, LLC is the claims agent. The U.S. Trustee for Region 7 appointed an official committee of unsecured creditors in the Debtors' Chapter 11 cases on Sept. 23, 2022. The committee tapped Weil, Gotshal & Manges, LLP and Pachulski Stang Ziehl & Jones, LLP as legal counsels; FTI Consulting, Inc., as financial advisor; and Perella Weinberg Partners, LP as investment banker. About National CineMedia National CineMedia, LLC, a company in Centennial, Colo., owns the largest cinema-advertising network in North America. The company derives its revenue principally from the sale of advertising to national, regional, and local businesses, which is displayed on a national and regional digital network of movie theaters. National CineMedia filed a Chapter 11 petition (Bankr. S.D. Texas Case No. 23-90291) on April 11, 2023, with $500 million to $1 billion in assets and $1 billion to $10 billion in liabilities. Ronnie Ng, chief financial officer of National CineMedia, signed the petition. Judge David R. Jones presides over the case. The Debtor tapped Paul, Weiss, Rifkind, Wharton & Garrison, LLP as bankruptcy counsel; Porter Hedges, LLP as local counsel; Latham & Watkins, LLP as special counsel; Lazard Freres & Co. as investment banker; and FTI Consulting, Inc. as restructuring advisor. Omni Agent Solutions is the Debtor's notice, claims and balloting agent. The U.S. Trustee for Region 7 appointed an official committee to represent unsecured creditors in the Debtor's Chapter 11 case. White & Case, LLP and Alvarez & Marsal North America, LLC serve as the committee's legal counsel and financial advisor, respectively. NEP NCP HOLDCO: MetWest FRI Marks $440,000 Loan at 19% Off ---------------------------------------------------------- Metropolitan West Fund's Floating Rate Income Fund has marked its $440,000 loan extended to NEP/NCP Holdco, Inc to market at $357,867 or 81% of the outstanding amount, as of March 31, 2023, according to a disclosure contained in MetWest Fund's Form N-CSR for the Fiscal year ended March 31, 2023, filed with the Securities and Exchange Commission. Floating Rate Income Fund is a participant in a First Lien Term Loan B (LIBOR plus 7%) to NEP/NCP Holdco, Inc. The loan accrues interest at a rate of 11.84% per annum. The loan matures on October 19, 2026. The Metropolitan West Funds is an open-end management investment company organized as a Delaware statutory trust on December 9, 1996 and registered under the Investment Company Act of 1940, as amended. Metropolitan West Asset Management, LLC, a federally registered investment adviser, provides the Funds with investment management services. The Trust currently consists of 14 separate portfolios. Based in Pittsburgh, Pa., NEP/NCP Holdco, Inc provides outsourced media services necessary for the delivery of live broadcast of sports and entertainment events to television and cable networks, television content providers, and sports and entertainment producers. The company is owned primarily by affiliates of the Carlyle Group. NEUBERT CONSTRUCTION: Seeks to Hire Davis Group as Accountant ------------------------------------------------------------- Neubert Construction Services, Inc. seeks approval from the U.S. Bankruptcy Court for the Middle District of Florida to hire The Davis Group Tax & Advisory Services, PA as its accountants. Davis Group will be preparing federal income tax returns and financials for the Debtor and any other services the Debtor may require. The firm will bill $525 per tax year, plus $225 per hour for the analysis and adjustment of the data provided by the Debtor. As disclosed in the court filings, Davis Group is disinterested as such term is defined by Sec. 101(14) of the Bankruptcy Code. The firm can be reached through: Adam Davis The Davis Group Tax & Advisory Services, PA 4560 Via Royale, Bldg. 1 Fort Myers, FL 33919 Phone: (239) 278-5209 Phone: (239) 278-0124 Fax: (239) 278-4002 About Neubert Construction Services Neubert Construction Services, Inc. sought protection for relief under Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 23-00200) on Feb. 14, 2023, with as much as $1 million in both assets and liabilities. Judge Caryl E. Delano oversees the case. Edward J. Peterson, Esq., at Stichter Riedel Blain & Postler, P.A. represents the Debtor as counsel. NEW INSIGHT: MetWest FRI Marks $473,750 Loan at 23% Off ------------------------------------------------------- Metropolitan West Fund's Floating Rate Income Fund has marked its $473,750 loan extended to New Insight Holdings, Inc to market at $363,345 or 77% of the outstanding amount, as of March 31, 2023, according to a disclosure contained in the MetWest Fund's Form N-CSR for the Fiscal year ended March 31, 2023, filed with the Securities and Exchange Commission. Floating Rate Income Fund is a participant in a First Lien Term Loan B (LIBOR plus 5.50%) to New Insight Holdings, Inc. The loan accrues interest at a rate of 10.31% per annum. The loan matures on December 20, 2024. The Metropolitan West Funds is an open-end management investment company organized as a Delaware statutory trust on December 9, 1996 and registered under the Investment Company Act of 1940, as amended. Metropolitan West Asset Management, LLC, a federally registered investment adviser, provides the Funds with investment management services. The Trust currently consists of 14 separate portfolios. New Insight Holdings, Inc. provides Internet-based services. NEW JERSEY VISION: Court OKs Interim Cash Collateral Access ----------------------------------------------------------- The U.S. Bankruptcy Court for the District of New Jersey authorized New Jersey Vision Associates, PC to use cash collateral on an interim basis in accordance with the budget. The Debtor requires the use of cash collateral to continue its business operations without interruption. The alleged secured creditors with liens against the Debtor's assets are Wells Fargo, Bankers Healthcare Group, the US Small Business Administration, The Business Backer, Loan Building, Kabbage from American Express, Cloudfund, and Amerifund Group, LLC. The Debtor believes Wells Fargo, Bankers Healthcare Group and the SBA have liens which are secured, at least partially, by the value of the Debtor's assets and collateral. As of the Petition Date, the outstanding aggregate amount of the obligations owing by the Debtor to the Protected Creditors is, respectively, (i) Wells Fargo ($96,029.25); (ii) Bankers Healthcare Group ($254,270); and (iii) the SBA ($500,000). The Debtor's authorization, and the consent of the secured creditor, to use cash collateral will terminate: (i) on the occurrence of an Event of Default; or (ii) five business days after the secured creditor has provided written notice to the Debtor of the occurrence of an Event of Default. As adequate protection, the secured creditor is granted a replacement lien under 11 U.S.C. section 361(2) on all assets of the Debtor arising after the Petition Date (excluding Chapter 5 avoidance actions) in an amount equal to the aggregate diminution in value (if any) of the Prepetition Collateral resulting from the sale, lease, or use by Debtor of its Prepetition Collateral, or the imposition of the automatic stay pursuant to 11 U.S.C. section 362. The Replacement Lien granted (i) will be deemed automatically valid and perfected without any further notice or act by any party and (ii) will remain in full force and effect notwithstanding any subsequent conversion or dismissal of either Case. The replacement lien will be junior in priority only to any fees payable to the Clerk of the Court, statutory fees pursuant to 28 U.S.C. section 1930(a)(6), any Permitted Priority Liens, and subject to a carve out in favor of the retained professionals, including counsel and accountants for the Debtor-in-Possession and the Subchapter V Trustee, in the amount of $100,000. To the extent the adequate protection provided for hereby proves insufficient to protect the secured creditor's interest in and to cash collateral as set forth in the Motion, the secured creditor wiall have a super priority administrative expense claim, pursuant to 11 U.S.C. section 507(b), senior to any and all claims against Debtor under 11 U.S.C. section 507(a), whether in the proceeding or in any superseding proceeding, subject to payments due under 28 U.S.C. section 1930(a)(6), and subject to a carve out in favor of the retained professionals, including counsel and accountants for the Debtor-in-Possession and the Subchapter V Trustee, in the amount of $100,000. These events constitute an "Event of Default: (a) The Debtor fails to perform any of its obligations with respect to use of cash collateral in accordance with the terms of the Order; (b) The Case is converted to a case under chapter 7 of the Bankruptcy Code; or (c) A trustee, other than the original Subchapter V trustee, is appointed, elected or granted enhanced powers in the Case with power to control the operations of the Debtor. A final hearing on the matter is set for July 11 at 10 a.m. A copy of the Court's order and the Debtor's budget is available at https://urlcurt.com/u?l=V2lQtv from PacerMonitor.com. The Debtor projects total operating disbursements, on a weekly basis, as follows: $7,439 for the week ending June 23, 2023; $23,570 for the week ending June 30, 2023; $18,214 for the week ending July 7, 2023; $14,727 for the week ending July 14, 2023 $8,684 for the week ending July 21, 2023; and $22,127 for the week ending July 28, 2023. About New Jersey Vision Associates, P.C. New Jersey Vision Associates, P.C. provides comprehensive eye care services including routine eye examinations, screenings for eye problems related to diabetes, high blood pressure, and thyroid disease, as well as eye disorders such as cataract, glaucoma, and macular degeneration. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.N.J. Case No. 23-15043) on June 9, 2023. In the petition signed by Mitchell Vogel, president, the Debtor disclosed up to $500,000 in assets and up to $10 million in liabilities. Judge Stacey L. Meisel oversees the case. Jeffrey A. Cooper, Esq., at Rabinowitz, Lubetkin, and Tully, LLC, represents the Debtor as legal counsel. NEW TROJAN: MetWest FRI Marks $1.4M Loan at 31% Off --------------------------------------------------- Metropolitan West Fund's Floating Rate Income Fund has marked its $1,473,750 loan extended to New Trojan Parent, Inc to market at $1,009,526 or 69% of the outstanding amount, as of March 31, 2023, according to a disclosure contained in the MetWest Fund's Form N-CSR for the Fiscal year ended March 31, 2023, filed with the Securities and Exchange Commission. Floating Rate Income Fund is a participant in a First Lien Term Loan (LIBOR plus 3.25%) to New Trojan Parent, Inc. The loan accrues interest at 7.96% to 8.09% per annum. The loan matures on January 6, 2028. The Metropolitan West Funds is an open-end management investment company organized as a Delaware statutory trust on December 9, 1996 and registered under the Investment Company Act of 1940, as amended. Metropolitan West Asset Management, LLC, a federally registered investment adviser, provides the Funds with investment management services. The Trust currently consists of 14 separate portfolios. New Trojan Parent, Inc. is the acquirer of Strategic Partners Acquisition Corp., an indirect parent company of branded medical apparel company Careismatic, Inc. NEXTSPORT INC: Has Cash Collateral Access Thru Sept 30 ------------------------------------------------------ The U.S. Bankruptcy Court for the Northern District of California authorized Nextsport, Inc. to continue using cash collateral on an interim basis pursuant to the budget through the end of September 2023. As previously reported by the Troubled Company Reporter, these entities assert an interest in the Debtor's cash collateral: -- JAS Forwarding Netherlands, -- JAS Forwarding UK, -- Tigers International Solutions PTY LTD. AU, -- Tigers International Logistics BV, and -- Tigers Global Logistics Limited UK A copy of the order is available at https://urlcurt.com/u?l=YHcclr from PacerMonitor.com. About Nextsport, Inc. Nextsport, Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Court (Bankr. N.D. Cal. Case No. 22-40569) on June 13, 2022. In the petition signed by David Lee, its chief executive officer, the Debtor disclosed $13,381,220 in assets and $10,668,143 in liabilities. Judge William J. Lafferty oversees the case. Eric A. Nyberg, Esq., at Kornfeld, Nyberg, Bendes, Kuhner and Little PC is the Debtor's counsel. NOB HILL INN: Taps Thomas O'Brien of Vacation Resorts as Manager ---------------------------------------------------------------- Nob Hill Inn City Plan Owners Association received approval from the U.S. Bankruptcy Court for the Northern District of California to hire Thomas O'Brien of Vacation Resorts International, Inc. The Debtor requires the services of Mr. O'Brien to manage its property known as Nob Hill Inn located at 1000 Pine St., San Francisco, Calif. The consulting agreement between the Debtor and Mr. O'Brien provides for a monthly consulting fee of $5,500, payable in advance, for the months of April through June, 2023, and, thereafter, a fee of $4,500 per month, until terminated or the consulting services are concluded. As disclosed in court filings, Mr. O'Brien neither holds nor represents any interest adverse to the Debtor and its estate. Mr. O'Brien can be reached at: Thomas O'Brien Vacation Resorts International, LLC 25510 Commercentre Dr., Ste. 100 Lake Forest, CA 92630 About Nob Hill Inn City Plan Owners Association Nob Hill Inn City Plan Owners Association is the owner of Nob Hill Inn, a 21-unit hotel located at 1000 Pine St., San Francisco, Calif. The Debtor filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. N.D. Calif. Case No. 23-30368) on June 10, 2023, with $8,537,769 in assets and $222,858 in liabilities. Mark M. Sharf has been appointed as Subchapter V trustee. Judge Dennis Montali oversees the case. The Debtor tapped Michael St. James, Esq., at St. James Law, P.C. as bankruptcy counsel, and Thomas O'Brien of Vacation Resorts International, Inc. as property manager. ORCHARD TRAILS: Case Summary & Two Unsecured Creditors ------------------------------------------------------ Debtor: Orchard Trails, LLC 23133 Orchard Lake Road, Suite 101 Farmington, MI 48336 Chapter 11 Petition Date: June 22, 2023 Court: United States Bankruptcy Court Southern District of Florida Case No.: 23-14894 Debtor's Counsel: David L. Merrill, Esq. THE ASSOCIATES Harbour Financial Center 2401 PGA Boulevard, Suite 280M Suite B Palm Beach Gardens, FL 33410 Tel: (561) 877-1111 Email: dlm@theassociates.com Estimated Assets: $500,000 to $1 million Estimated Liabilities: $1 million to $10 million The petition was signed by Stavros Triant as chief executive officer. A full-text copy of the petition containing, among other items, a list of the Debtor's two unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/F64VBBI/Orchard_Trails_LLC__flsbke-23-14894__0001.0.pdf?mcid=tGE4TAMA PANEVAS LLC: Seeks to Hire Clearbay Realty as Real Estate Broker ---------------------------------------------------------------- Panevas LLC seeks approval from the U.S. Bankruptcy Court for the Middle District of Florida to hire Peter Nascarella and Clearbay Realty as its real estate brokers. The broker will assist the Debtor is procuring a new tenant for its properties located at 19206 U.S. Highway 19 N. and at Harn Boulevard, both in Clearwater, Florida 33764. The broker will render these services: a. give advice to the Debtor as a real estate broker and in connection with the continued management of the Debtor's business operations; b. advise the Debtor with respect to its responsibilities to tenants; c. protect the interests of the Debtor in all matters pending before this Court; and d. represent the Debtor in negotiations with the Debtor's potential tenants. As disclosed in the court filings, Clearbay has no interest adverse to the Debtor or to the Debtor in any of the matters upon which they are to be engaged, and its employment would be in the best interests of this estate. The firm can be reached through: Peter Nascarella Clearbay Realty 844 Lantana Ave, Clearwater, FL, 33767 Phone: (727) 447-2758 About Panevas LLC Panevas, LLC, a company in Tampa, Fla., filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 23-01589) on April 21, 2023, with $1,011,963 in assets and $2,613,430 in liabilities. Panayiotis Vasiloudes, manager, signed the petition. Stephenie Biernacki Anthony, Esq., at Anthony & Partners, LLC represents the Debtor as counsel. PEACE EQUIPMENT: Seeks to Hire Baker & Associates as Counsel ------------------------------------------------------------ Peace Equipment LLC seeks approval from the U.S. Bankruptcy Court for the Southern District of Texas to hire Baker & Associates as its bankruptcy counsel. The firm's services include: (a) analyzing the financial situation, and rendering advice and assistance to the Debtor; (b) advising the Debtor with respect to its duties; (c) preparing and filing schedules of assets and liabilities, statements of affairs and legal papers; (d) representing the Debtor at the first meeting of creditors; (e) representing the Debtor in all proceedings before the bankruptcy court and in any other judicial or administrative proceeding where its rights may be litigated or otherwise affected; (f) preparing and filing a disclosure statement, if required, and Chapter 11 plan of reorganization; and (g) assisting the Debtor in any matters relating to or arising out of its Chapter 11 case. Baker & Associates will be paid based upon its normal and usual hourly billing rates and will be reimbursed for its expenses. The firm received the sum of $11,738 from the Debtor, of which $1,738 was used to pay the filing fee. The remaining amount was used to pay the firm's pre-bankruptcy fees and other expenses. Reese Baker, Esq., an attorney at Baker & Associates, disclosed in a court filing that his firm is a "disinterested person" pursuant to Section 101(14) of the Bankruptcy Code. The firm can be reached through: Reese W. Baker, Esq. Baker & Associates 950 Echo Lane, Ste. 300 Houston, TX 770024 Telephone: (713) 869-9200 Facsimile: (713) 869-9100 Email: courtdocs@bakerassociates.net About Peace Equipment Peace Equipment, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 23-70098) on May 24, 2023. In the petition signed by Alejandro G. Mascorro, president, the Debtor disclosed up to $10 million in both assets and liabilities. Judge Eduardo V. Rodriguez oversees the case. Reese W. Baker, Esq., at Baker and Associates, represents the Debtor as legal counsel. PERFECTLY PRISCILLA: Jenny Martin Walker Named Subchapter V Trustee ------------------------------------------------------------------- The U.S. Trustee for Region 21 appointed Jenny Martin Walker as Subchapter V trustee for Perfectly Priscilla, LLC. Ms. Walker will be paid an hourly fee of $325 for her services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Ms. Walker declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Jenny Martin Walker P.O. Box 1956 Macon, GA 31202-1956 Phone: (478) 200-6184 Email: Trustee.jmw@adamshemingway.com About Perfectly Priscilla Perfectly Priscilla, LLC operates an in-store and online plus size women's clothing boutique. Headquartered in Valdosta, Ga., Perfectly Priscilla provides a full suite of women's clothing and accessories. Perfectly Priscilla sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Ga. Case No. 23-70575) on June 9, 2023, with up to $1 million in assets and up to $10 million in liabilities. Thomas Thompson, managing member, signed the petition. G. Daniel Taylor, Esq., at Stone & Baxter, LLP, represents the Debtor as legal counsel. PERSHARD CLIPPER: Aleida Molina Named Subchapter V Trustee ---------------------------------------------------------- The U.S. Trustee for Region 21 appointed Aleida Martinez Molina, Esq., as Subchapter V trustee for Pershard Clipper, LLC. Ms. Molina will be paid an hourly fee of $425 for her services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Ms. Molina declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Aleida Martinez Molina, Esq. 2121 NW 2nd Avenue, Suite 201 Miami, Florida 33127 Telephone: (305) 297-1878 Email: Martinez@subv-trustee.com About Pershard Clipper Pershard Clipper, LLC filed Chapter 11 Petition (Bankr. S.D. Fla. Case No. 23-14553) on June 12, 2023, with as much as $50,000 in assets and $100,001 to $500,000 in liabilities. Judge Mindy A. Mora oversees the case. The Debtor is represented by Brian K. McMahon, Esq., at Brian K. McMahon, PA. PERSHARD INVESTMENTS: Aleida Molina Named Subchapter V Trustee -------------------------------------------------------------- The U.S. Trustee for Region 21 appointed Aleida Martinez Molina, Esq. as Subchapter V trustee for Pershard Investments, LLC. Ms. Molina will be paid an hourly fee of $425 for her services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Ms. Molina declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Aleida Martinez Molina, Esq. 2121 NW 2nd Avenue, Suite 201 Miami, Florida 33127 Telephone: (305) 297-1878 Email: Martinez@subv-trustee.com About Pershard Investments Pershard Investments, LLC owns and operates two Great Clip franchise locations. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 23-14552) on June 12, 2023, with up to $50,000 in assets and up to $500,000 in liabilities. Raam K. Pershard, managing member, signed the petition. Judge Mindy A. Mora oversees the case. Brian K. McMahon, Esq., at Brian K. McMahon, PA, represents the Debtor as legal counsel. PILL CLUB: Taps Quarles & Brady as Ordinary Course Professional --------------------------------------------------------------- The Pill Club Pharmacy Holdings, LLC and affiliates seek approval from the U.S. Bankruptcy Court for the Northern District of Texas to hire Quarles & Brady LLP as ordinary course professional. The firm provides legal analysis relating to federal, state, and local healthcare and pharmaceutical laws and regulations. The OCP can be reached through: Kaytie M. Ravega, Quarles & Brady LLP 135 North Pennsylvania Street, Suite 2400, Indianapolis, IN 46204 About The Pill Club Pharmacy Holdings The Pill Club Pharmacy Holdings, LLC is a digital healthcare platform. The company says it is "on a mission to empower women and people who menstruate to lead their healthiest lives." It combines telemedicine and direct-to-consumer pharmacy. Pill Club Pharmacy Holdings and its affiliates sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Texas Lead Case No. 23-41090) on April 18, 2023. In the petition signed by Elizabeth Meyerdirk, chief executive officer, the Debtors disclosed up to $50,000 in assets and up to $50 million in liabilities. Judge Edward L. Morris oversees the cases. The Debtors tapped Katherine A. Preston, Esq., at Winston and Strawn, LLP as general bankruptcy counsel; Accordion Partners, LLC as financial advisor; and BMC Group, Inc. as claims, noticing, solicitation and administrative agent. The U.S. Trustee for Region 6 appointed an official committee to represent unsecured creditors in the Debtors' Chapter 11 cases. The committee is represented by Akerman, LLP and Buchalter, A Professional Corporation. PLUMBING TECHNOLOGIES: Court OKs Interim Cash Collateral Access --------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York, Poughkeepsie Division, authorized Plumbing Technologies, LLC to use cash collateral on an interim basis in accordance with the budget. On October 30, 2017, PlumbTech and SLR Business Credit, f/k/a Summit Financial Resources, L.P., entered into a Loan and Security Agreement. Pursuant to the terms of the Loan Agreement, SLR provided secured credit to the Debtor in the form of a revolving line of credit and a term loan -- with an approximate balance of $50,000 as of the Petition Date. SLR has provided additional liquidity to the Debtor by purchasing certain accounts receivables from the Debtor. The Debtor's obligations to SLR are secured by a first lien on all or substantially all of the assets of the Debtor, including all present and future accounts, inventory, and accounts receivables. As and for adequate protection, the Debtor will provide continued maintenance of, and insurance on, all property of the Debtor. The Debtor will provide satisfactory documentary proof of insurance to SLR if it so required. In addition, SLR will be granted valid and enforceable first priority replacement liens on the Collateral. The Debtor is authorized to continue selling its accounts receivable to SLR in the ordinary course of SLR's business pursuant to the Loan Agreement, and the Debtor and SLR are authorized to make and apply all payments due thereunder. All terms and conditions enumerated in the Loan Agreement will apply post-petition, including, without limitation, SLR receiving liens on future accounts receivable and inventory subject to the Loan Agreement. The automatic stay imposed pursuant to 11 U.S.C. section 362(a) is modified pursuant to the terms of the Interim Order as necessary to (I) permit the Debtor to grant the adequate protection replacement liens to SLR, (II) collect payments from customers of the Debtor pursuant to the purchased accounts receivable regardless of whether the accounts receivables were purchased by SLR pre-petition or post-petition, (III) permit SLR to apply payments as directed per the invoices. A final hearing on the matter is set for August 8, 2023 at 9 a.m. A copy of the order is available at https://urlcurt.com/u?l=oBunrh from PacerMonitor.com. About Plumbing Technologies, LLC Plumbing Technologies, LLC designs, engineers, manufactures, markets, sells toilet seats. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. N.Y. Case No. 23-35478) on June 12, 2023. In the petition signed by Edward Sims, chief executive officer, the Debtor disclosed $2,169,310 in total assets and $2,364,227 in total liabilities. Judge Cecelia G. Morris oversees the case. Michelle L. Trier, Esq., at Genova, Malin and Trier, LLP, represents the Debtor as legal counsel. PLUMBING TECHNOLOGIES: Seeks to Tap Genova Malin & Trier as Counsel ------------------------------------------------------------------- Plumbing Technologies, LLC seeks approval from the U.S. Bankruptcy Court for the Southern District of New York to employ Genova, Malin & Trier LLP as its counsel. The firm will render these services: (a) advise the Debtor with respect to its powers and duties in its financial situation and management of its property; (b) prepare legal papers; and (c) perform all other legal services for the Debtor which may be necessary herein. The firm will represent the Debtor under a general retainer in this case. Michelle Trier, Esq., an attorney at Genova, Malin & Trier, disclosed in a court filing that the firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Michelle L. Trier, Esq. Genova, Malin & Trier LLP 1136 Route 9, Suite 1 Wappingers Falls, NY 12590 Phone: 845-298-1600 Fax: 845-298-1600 About Plumbing Technologies Plumbing Technologies, LLC designs, engineers, manufactures, markets, and sells toilet seats. The company is based in Sparks, Nev. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. N.Y. Case No. 23-35478) on June 12, 2023. In the petition signed by its chief executive officer, Edward Sims, the Debtor disclosed $2,169,310 in total assets and $2,364,227 in total liabilities. Michelle L. Trier, Esq., at Genova, Malin and Trier, LLP, represents the Debtor as legal counsel. POLAR US BORROWER: MetWest FRI Marks $1.5M Loan at 16% Off ---------------------------------------------------------- Metropolitan West Fund's Flexible Income Fund has marked its $1,524,790 loan extended to Polar U.S. Borrower LLC to market at $1,276,007 or 84% of the outstanding amount, as of March 31, 2023, according to a disclosure contained in MetWest Fund's Form N-CSR for the Fiscal year ended March 31, 2023, filed with the Securities and Exchange Commission. Flexible Income Fund is a participant in a Term Loan, 1st Lien Loan (SOFR plus 4.75%) to Polar U.S. Borrower LLC. The loan accrues interest at a rate of 9.02% per annum. The loan matures on October 15, 2025. The Metropolitan West Funds is an open-end management investment company organized as a Delaware statutory trust on December 9, 1996 and registered under the Investment Company Act of 1940, as amended. Metropolitan West Asset Management, LLC, a federally registered investment adviser, provides the Funds with investment management services. The Trust currently consists of 14 separate portfolios. Polar US Borrower, LLC is the pass-through entity of ultimate parent, SK Blue Holdings, LP, an affiliate of private investment firm, SK Capital Partners. SI Group manufactures performance additives for use in polymer, rubber, lubricants, fuels, adhesives applications, surfactants in addition to some specialty chemicals. POLARITYTE INC: Gets OK to Hire Kurtzman Carson as Equity Agent --------------------------------------------------------------- PolarityTE, Inc., a Delaware corporation, and its affiliated received approval from the U.S. Bankruptcy Court for the District of Utah to hire Kurtzman Carson Consultants LLC as their equity noticing and solicitation agent. The firm will provide equity noticing solicitation, mailing, website, and other services with regard to the filing of these cases and all related proceedings. Prior to the petition date, the Debtor provided the firm a retainer in the amount of $10,000. The firm will bill the Debtor monthly and the Debtors agreed to pay out-of-pocket expenses incurred by the firm. Evan Gershbein, executive vice president of Kurtzman's Corporate Restructuring Services, disclosed in a court filing that his firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Evan Gershbein Kurtzman Carson Consultants, LLC 222 N. Pacific Coast Highway, 3rd Floor El Segundo, CA 90245 Telephone: (310) 751-1803 Facsimile: (310) 823-9133 Email: egershbein@kccllc.com About PolarityTE Inc. PolarityTE is focused on developing regenerative treatments for some of the most complex wounds -- where disease burden on patients and families is immense and current therapeutic options are often limited or do not exist. PolarityTE, Inc., a Delaware corporation, PolarityTE MD, Inc. and PolarityTE, Inc., and PolarityTE, Inc., (a Nevada Corporation) concurrently filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. D Utah Lead Case No. 23-22358). The petitions were signed by Richard Hague as CEO and president. Each Debtor estimated $500,000 to $1 million in assets and up to $50,000 in liabilities. Brian M. Rothschild, Esq. and Darren Neilson, Esq. at PARSONS BEHLE AND LATIMER represent the Debtor as counsel. POLARITYTE INC: Gets OK to Hire Ordinary Course Professionals ------------------------------------------------------------- PolarityTE, Inc., a Delaware corporation, and its affiliated received approval from the U.S. Bankruptcy Court for the District of Utah to hire professionals utilized in the ordinary course of business. The Debtors propose that they be permitted to pay, without formal application to the Court, fees and expenses on an average monthly basis not exceeding 125 percent of the monthly average for each of the Ordinary Course Professionals. As set forth below: Monthly 125 percent Average of Average Crowell & Moring $10,150 $12,687.50 Panitch $1,650 $2,062.50 Dorsey $30,650 $38,312.50 Murgitroyd $1,650 $2,062.50 Mark Lehman $10,600 $13,250.00 EisnerAmper $8,400 $10,500.00 Connor Group $16,550 $20,687.50 Scalar LLC $1,875 $2,343.75 Ned Swanson $8,100 $10,125.00 Total: $89,625 $112,031.25 About PolarityTE Inc. PolarityTE is focused on developing regenerative treatments for some of the most complex wounds -- where disease burden on patients and families is immense and current therapeutic options are often limited or do not exist. PolarityTE, Inc., a Delaware corporation, PolarityTE MD, Inc. and PolarityTE, Inc., and PolarityTE, Inc., (a Nevada Corporation) concurrently filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. D Utah Lead Case No. 23-22358). The petitions were signed by Richard Hague as CEO and president. Each Debtor estimated $500,000 to $1 million in assets and up to $50,000 in liabilities. Brian M. Rothschild, Esq. and Darren Neilson, Esq. at PARSONS BEHLE AND LATIMER represent the Debtor as counsel. POLARITYTE INC: Seeks to Hire Parsons Behle as Bankruptcy Counsel ----------------------------------------------------------------- PolarityTE, Inc., a Delaware corporation, and its affiliated seek approval from the U.S. Bankruptcy Court for the District of Utah to hire Parsons Behle & Latimer as their bankruptcy counsel. The firm's services include: (a) advising the Debtors with respect to their powers and duties as debtors in possession in the continued management and operation of their businesses and properties; (b) advising and consulting on the conduct of these Chapter 11 Cases, including all of the legal requirements of operating in chapter 11; (c) advising the Debtors in connection with corporate transactions and corporate governance, negotiations, consent solicitations, credit agreements, financing agreements, and other agreements with creditors, equity holders, prospective acquirers and investors, reviewing and preparing of documents and agreements, and such other actions; (d) reviewing and preparing pleadings in connection with these Chapter 11 Cases, including motions, applications, answers, orders, reports, and papers necessary or otherwise beneficial to the administration of the Debtors' estates, and appearing in court, and taking other actions with respect to the foregoing; (e) attending meetings and negotiating with representatives of creditors and other parties in interest; (f) advising the Debtors with legal issues related to the Debtors' financial circumstances, including with respect to restructuring, financing, corporate, tax, litigation, mergers and acquisition, and employment issues, in each case as may be necessary or appropriate; (g) performing all other ancillary necessary legal services for the Debtors in connection with the prosecution of these Chapter 11 Cases, including assisting the Debtors in (i) analyzing the legal aspects of the Debtors' leases and contracts and the assumption and assignment or rejection thereof; (ii) analyzing the validity of liens against the Debtors; and (iii) advising the Debtors on corporate and litigation matters; (h) taking all necessary legal actions to protect and preserve the Debtors' estates as the Debtors request, including prosecuting actions on the Debtors' behalf, defending any action commenced against the Debtors, and representing the Debtors in negotiations concerning litigation in which the Debtors are involved, including objections to claims filed against the Debtors' estates; and (i) taking any necessary action on behalf of the Debtors as the Debtors request to obtain approval of a disclosure statement and confirmation of a chapter 11 plan and all documents related thereto. The firm will be paid at these hourly rates: J. Thomas Beckett, Shareholder $750 Bruce H. White, Shareholder $650 Brian M. Rothschild, Shareholder $490 Darren Neilson, Shareholder $375 Simeon J. Brown, Associate $325 Alexander S. Chang, Law Clerk $325 Bruce White, Esq., at Parsons Behle, disclosed in court filings that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. The firm can be reached through: Bruce H. White, Esq. J. Thomas Beckett, Esq. Darren Neilson, Esq. PARSONS BEHLE AND LATIMER 201 S. Main Street Suite 1800 Salt Lake City UT 84111 Tel: 801-532-1234 Facsimile: 801.536.6111 Email: TBeckett@parsonsbehle.com BRothschild@parsonsbehle.com DNeilson@parsonsbehle.com About PolarityTE Inc. PolarityTE is focused on developing regenerative treatments for some of the most complex wounds -- where disease burden on patients and families is immense and current therapeutic options are often limited or do not exist. PolarityTE, Inc., a Delaware corporation, PolarityTE MD, Inc. and PolarityTE, Inc., and PolarityTE, Inc., (a Nevada Corporation) concurrently filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. D Utah Lead Case No. 23-22358). The petitions were signed by Richard Hague as CEO and president. Each Debtor estimated $500,000 to $1 million in assets and up to $50,000 in liabilities. Brian M. Rothschild, Esq. and Darren Neilson, Esq. at PARSONS BEHLE AND LATIMER represent the Debtor as counsel. POLARITYTE INC: Seeks to Hire Rocky Mountain as Financial Advisor ----------------------------------------------------------------- PolarityTE, Inc., a Delaware corporation, and its affiliated seek approval from the U.S. Bankruptcy Court for the District of Utah to hire Rocky Mountain Advisory, LLC as their accounting and financial advisors. The firm will render these services: (a) prepare financial disclosures; (b) assist with the prosecuting of any avoidance actions; (c) assist Debtors and their counsel in determining, litigating, and settling claims; (d) assist the Debtors with the preparation of monthly operating reports; (e) assist the Debtors with their liquidity, financial, operational and strategic planning including aiding Debtors and their Counsel in the development their Chapter 11 Cases and strategies therein; (f) assist the Debtors with the preparations of a Liquidation Analysis; (g) assist in the development and negotiations of a plan of liquidation of the Debtors; (h) assist the Debtors in administration of the bankruptcy filings; (i) provide support in the development of a cash flow budget or other operational budgets and forecasts as requested; and (j) prepare tax returns and other tax work as needed. The firm will be paid at these hourly rates: Managing Members $345 Directors $280 Managers $265 Senior Associates $250 Associates $240 Paraprofessionals $165 Administrative Staff $100 As dsiclosed in the court filings, Rocky Mountain Advisory is a "disinterested person," as such term is defined in section 101(14) of the Bankruptcy Code as modified by section 1107(b) of the Bankruptcy Code. The firm can be reached through: John H. Curtis, CPA Rocky Mountain Advisory, LLC W S Temple St #500 Salt Lake City, UT 84101 Phone: +1 801-428-1600 Email: jcurtis@rockymountainadvisory.com About PolarityTE Inc. PolarityTE is focused on developing regenerative treatments for some of the most complex wounds -- where disease burden on patients and families is immense and current therapeutic options are often limited or do not exist. PolarityTE, Inc., a Delaware corporation, PolarityTE MD, Inc. and PolarityTE, Inc., and PolarityTE, Inc., (a Nevada Corporation) concurrently filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. D Utah Lead Case No. 23-22358). The petitions were signed by Richard Hague as CEO and president. Each Debtor estimated $500,000 to $1 million in assets and up to $50,000 in liabilities. Brian M. Rothschild, Esq. and Darren Neilson, Esq. at PARSONS BEHLE AND LATIMER represent the Debtor as counsel. PRETIUM PKG: MetWest FRI Marks $1.7M Loan at 20% Off ---------------------------------------------------- Metropolitan West Fund's Floating Rate Income Fund has marked its $1,730,606 loan extended to Pretium Packaging Holdings, Inc to market at $1,390,975 or 80% of the outstanding amount, as of March 31, 2023, according to a disclosure contained in MetWest Fund's Form N-CSR for the Fiscal year ended March 31, 2023, filed with the Securities and Exchange Commission. Floating Rate Income Fund is a participant in a First Lien Term Loan (LIBOR plus 4%) to Pretium Packaging Holdings, Inc. The loan accrues interest at a rate of 8.79% - 9.01% per annum. The loan matures on October 10, 2028. The Metropolitan West Funds is an open-end management investment company organized as a Delaware statutory trust on December 9, 1996 and registered under the Investment Company Act of 1940, as amended. Metropolitan West Asset Management, LLC, a federally registered investment adviser, provides the Funds with investment management services. The Trust currently consists of 14 separate portfolios. Pretium PKG Holdings, Inc. is a manufacturer of rigid plastic containers for variety of end markets, including food and beverage, chemicals, healthcare, wellness and personal care. Pretium PKG Holdings, Inc. is a portfolio company of Clearlake since January 2020. PRIMAL CRUSHING: Seeks to Hire Rochelle McCullough as Counsel ------------------------------------------------------------- Primal Crushing, LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of Texas to employ Rochelle McCullough, LLP as its counsel. The firm will render these services: (a) advise the Debtor with respect to rights, powers and duties in the continued operation and management of its business; (b) advise the Debtor concerning, and assist in the negotiation and documentation of, agreements, debt restructuring, and related transactions; (c) monitor transactions proposed by the parties in interest during the course of this case and advise the Debtor regarding the same; (d) review the nature and validity of liens asserted against the property of the Debtor and advise the Debtor concerning the enforceability of such liens; (e) advise the Debtor concerning the actions that might be taken to collect and to recover property for the benefit of the Debtor's estate; (f) review and monitor the Debtor's ongoing business; (g) prepare on behalf of the Debtor all necessary and appropriate legal documents and review all financial and other reports to be filed in this Chapter 11 case; (h) advise the Debtor concerning, and prepare responses to, legal papers that may be filed and served in this Chapter 11 case; (i) advise the Debtor in connection with any suggested or proposed plan(s) of reorganization; (j) counsel the Debtor in connection with the formulation, negotiation, and promulgation of a plan of reorganization; and (k) perform all other legal services for and on behalf of the Debtor that may be necessary or appropriate in the administration of this Chapter 11 case. The hourly rates of the firm's counsel and staff are as follows: Partners $550 - $700 Associates $350 - $400 Paraprofessionals $225 The firm received an initial retainer fee of $25,000. Joseph Postnikoff, Esq., a partner at Rochelle McCullough, disclosed in a court filing that the firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Joseph F. Postnikoff, Esq. Rochelle McCullough, LLP 300 Throckmorton, Suite 520 Fort Worth, TX 76102 Telephone: (817) 347-5260 Email: jpostnikoff@romclaw.com About Primal Crushing Primal Crushing, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Texas Lead Case No. 23-10082) on June 12, 2023. In the petition signed by Victor John Hirsch, III, managing member, the Debtor disclosed $1 million to $10 million in both assets and liabilities. Robert L. Jones oversees the case. Joseph F. Postnikoff, Esq., at Rochelle McCullough, LLP serves as counsel to the Debtor. PRIMAL MATERIALS: Seeks to Hire Rochelle McCullough LLP as Counsel ------------------------------------------------------------------ Primal Materials, LLC seeks approval from the U.S. Bankruptcy Court for the Northern District of Texas to employ Rochelle McCullough, LLP as its counsel. The firm will render these services: (a) advise the Debtor with respect to rights, powers and duties in the continued operation and management of its business; (b) advise the Debtor concerning, and assist in the negotiation and documentation of, agreements, debt restructuring, and related transactions; (c) monitor transactions proposed by the parties in interest during the course of this case and advise the Debtor regarding the same; (d) review the nature and validity of liens asserted against the property of the Debtor and advise the Debtor concerning the enforceability of such liens; (e) advise the Debtor concerning the actions that might be taken to collect and to recover property for the benefit of the Debtor's estate; (f) review and monitor the Debtor's ongoing business; (g) prepare on behalf of the Debtor all necessary and appropriate legal documents and review all financial and other reports to be filed in this Chapter 11 case; (h) advise the Debtor concerning, and prepare responses to, legal papers that may be filed and served in this Chapter 11 case; (i) advise the Debtor in connection with any suggested or proposed plan(s) of reorganization; (j) counsel the Debtor in connection with the formulation, negotiation, and promulgation of a plan of reorganization; and (k) perform all other legal services for and on behalf of the Debtor that may be necessary or appropriate in the administration of this Chapter 11 case. The hourly rates of the firm's counsel and staff are as follows: Partners $550 - $700 Associates $350 - $400 Paraprofessionals $225 The firm received an initial retainer fee of $25,000. Joseph Postnikoff, Esq., a partner at Rochelle McCullough, disclosed in a court filing that his firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Joseph F. Postnikoff, Esq. Rochelle McCullough, LLP 300 Throckmorton, Suite 520 Fort Worth, TX 76102 Telephone: (817) 347-5260 Email: jpostnikoff@romclaw.com About Primal Materials Primal Materials, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Texas Lead Case No. 23-10081) on June 12, 2023. In the petition signed by Victor John Hirsch, III, managing member, the Debtor disclosed $100,001 to $500,000 in assets and $1 million to $10 million in liabilities. Robert L. Jones oversees the case. Joseph F. Postnikoff, Esq., at Rochelle McCullough, LLP serves as counsel to the Debtor. PRIME PLUMBING: Gary Murphey Named Subchapter V Trustee ------------------------------------------------------- The U.S. Trustee for Region 21 appointed Gary Murphey of Resurgence Financial Services, LLC as Subchapter V trustee for Prime Plumbing Services, LLC. Mr. Murphey 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. Murphey declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Gary Murphey Resurgence Financial Services, LLC 3330 Cumberland Blvd., Suite 500 Atlanta, GA 30330 Cell: (404) 886-9104 Tel: 770-933-6855 Email: Murphey@RFSLimited.com About Prime Plumbing Prime Plumbing Services, LLC is a building equipment contractor in Gainesville, Ga. The Debtor filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. N.D. Ga. Case No. 23-20661) on June 13, 2023, with as much as $50,000 in assets and $1 million to $10 million in liabilities. James Coberly, sole member, signed the petition. Judge James R. Sacca oversees the case. Douglas Jacobson, Esq., at the Law Offices of Douglas Jacobson, LLC is the Debtor's counsel. PRIME PLUMBING: Wins Cash Collateral Access Thru July 20 -------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Georgia, Gainesville Division, authorized Prime Plumbing Services, LLC to use the cash collateral of TVT Capital, LLC and Alternative Funding Group Corp. on an interim basis in accordance with the budget, through July 20, 2023. The Debtor is directed to provide the following adequate protection to TVT and AFG during the Cash Collateral Term: a. All pre-petition liens of TVT and AFG will continue until further Court order. b. The Debtor will continue to operate and maintain its business and properties in accordance with the Budget and the order. c. Commencing on July 15, 2023, and continuing on the same day of each consecutive month thereafter during the Cash Collateral Term, the Debtor will make monthly payments to TVT in the total amount of $2,500, such payments constituting additional adequate protection of TVT's interest in the assets collateralizing its claims. TVT may internally allocate the payments that it receives as it wishes, provided, however, that the allocation of those payments for the purposes of claim(s) against Debtor or the bankruptcy estate will be determined under the Bankruptcy Code and applicable Bankruptcy Rules. d. Commencing on July 15, 2023, and continuing on the same day of each consecutive month thereafter during the Cash Collateral Term, the Debtor will make monthly payments to AFG in the total amount of $1,000, such payments constituting additional adequate protection of AFG's interest in the assets collateralizing its claims. A final hearing o the matter is set for July 20, 2023 at 10:30 a.m. A copy of the motion is available at https://urlcurt.com/u?l=oYx4tm from PacerMonitor.com. About Prime Plumbing Services, LLC Prime Plumbing Services, LLC is a building equipment contractor. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 23-20661) on June 13, 2023. In the petition filed by James Coberly, sole member, the Debtor disclosed up to $50,000 in assets and up to $10 million in liabilities. Judge James R. Sacca oversees the case. Douglas Jacobson, Esq., at the Law Offices of Douglas Jacobson, LLC, represents the Debtor as legal counsel. PROPPANT TECH: Seeks to Hire Glast Phillips & Murray as Counsel --------------------------------------------------------------- Proppant Tech Services, LLC, and NA Land Investments, LLC seek approval from the U.S. Bankruptcy Court for the Western District of Texas to hire Glast Phillips & Murray, P.C. as their legal counsel. The Debtors require legal counsel to: (a) provide legal advice with respect to the Debtors' powers and duties in the continued operation of their business and the management of their property; (b) take all necessary action to protect and preserve the Debtors' estate, including the prosecution of actions on behalf of the Debtors, the defense of any actions commenced against the Debtors, negotiations concerning litigation in which the Debtors are involved, and objections to claims filed against the estates; (c) prepare legal papers; (d) assist the Debtors in preparing for and filing a plan of reorganization; and (e) perform such legal services as the Debtors may request with respect to any matter, including, but not limited to, corporate finance and governance, contracts, antitrust, labor, and tax. The firm charges $450 to $650 per hour for partners, $350 to $450 per hour for associates, and up to $220 per hour for paralegals. The rate charged by Brandon Tittle, Esq., the firm's lead attorney, is $550 per hour. In addition, the firm will seek reimbursement for work-related expenses incurred. Mr. Tittle disclosed in a court filing that the firm and its attorneys are "disinterested" pursuant to Section 101(14) of the Bankruptcy Code. Glast Phillips & Murray can be reached at: Brandon J. Tittle, Esq. Matthew E. Furse, Esq. Robert N. Loughran, Esq. Glast Phillips & Murray, P.C. 14801 Quorum Drive, Suite 500 Dallas, TX 75254 Telephone: 972.419.8300 Facsimile: 972.419.8329 Email: btittle@gpm-law.com Email: mfurse@gpm-law.com Email: rloughran@gpm-law.com About Proppant Tech Services Proppant Tech Services, LLC is a sand mining business in San Antonio, Texas, that produces and sells special silica sands, otherwise known as "frac sand." The frac sand, which is produced through the wet sand method, is sold to oil and gas businesses engaged in hydraulic fracturing or "fracking." Proppant Tech Services and its affiliate, NA Land Investments, LLC, sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Texas Case Nos. 23-50734 and 23-50735) on June 11, 2023. Anirban Haldar, member, signed the petitions. Proppant Tech Services had $8,622,400 in assets and $8,770,018 in liabilities as of March 31, 2023, while NA Land Investments had $2,011,340 in assets and $1,892,921 in liabilities as of June 10, 2023. The Debtors tapped Brandon J. Tittle, Esq., at Glast, Phillips and Murray, PC as legal counsel and Lane Gorman Trubitt, LLC as financial advisor. Christopher Lang, a partner at Lane Gorman Trubitt, serves as the Debtors' chief restructuring officer. PROPPANT TECH: Seeks to Hire Lane Gorman Trubitt, Appoint CRO ------------------------------------------------------------- Proppant Tech Services, LLC, and NA Land Investments, LLC seek approval from the U.S. Bankruptcy Court for the Western District of Texas to hire Lane Gorman Trubitt, LLC as their financial advisor and appoint Christopher Lang as their chief restructuring officer. The services of Mr. Lang and his firm include: 1. assisting the Debtors in developing strategies to improve cash flow and reduce expenses; 2. assisting the Debtors in identifying and implementing both short-term and long-term liquidity generating initiatives; 3. assisting the Debtors in reporting to their pre-bankruptcy and post-petition secured lenders; 4. assisting the Debtors in complying with budgets; 5. assisting the Debtors in amending or terminating leases and contracts; 6. assisting the Debtors in reporting to creditor constituencies; 7. assisting the Debtors in complying with due diligence by prospective business or asset acquirers; 8. assisting in developing and implementing cash management strategies, tactics and processes including developing a cash receipts and disbursements forecasting tool; 9. assisting the Debtors in the preparation of data required in order to prepare the first day motions and related orders, which may be required by the bankruptcy court; 10. assisting in the preparation of the statement of financial affairs, schedules of assets and liabilities, and other regular reports required in the Debtors' Chapter 11 cases and in contract rejection analysis; 11. assisting the Debtors in areas such as testimony before the bankruptcy court on matters that are within the firm's areas of expertise; and 12. assisting with such other matters as may be requested by the Board of Directors that fall within the firm's expertise and that are mutually agreeable. The hourly rates charged by the firm for its services are as follows: Partner $350 per hour Director $250 per hour In addition, the firm will receive reimbursement for work-related expenses incurred. As disclosed in court filings, Mr. Lang and Lane Gorman Trubitt are "disinterested" pursuant to Section 101(14) of the Bankruptcy Code. Lane Gorman Trubitt can be reached at: Christopher Lang Lane Gorman Trubitt, LLC 2626 Howell Street, Suite 700 Dallas, TX 75204-4064 Phone: (214) 871-7500 Fax: (214) 871-0011 Email: askus@lgt-cpa.com About Proppant Tech Services Proppant Tech Services, LLC is a sand mining business in San Antonio, Texas, that produces and sells special silica sands, otherwise known as "frac sand." The frac sand, which is produced through the wet sand method, is sold to oil and gas businesses engaged in hydraulic fracturing or "fracking." Proppant Tech Services and its affiliate, NA Land Investments, LLC, sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Texas Case Nos. 23-50734 and 23-50735) on June 11, 2023. Anirban Haldar, member, signed the petitions. Proppant Tech Services had $8,622,400 in assets and $8,770,018 in liabilities as of March 31, 2023, while NA Land Investments had $2,011,340 in assets and $1,892,921 in liabilities as of June 10, 2023. The Debtors tapped Brandon J. Tittle, Esq., at Glast, Phillips and Murray, PC as legal counsel and Lane Gorman Trubitt, LLC as financial advisor. Christopher Lang, a partner at Lane Gorman Trubitt, serves as the Debtors' chief restructuring officer. PUERTO RICO: PREPA Sued by Workers Union to Stop Genera PR Contract ------------------------------------------------------------------- Alex Wolf of Bloomberg Law reports that a Puerto Rico Electric Power Authority worker union sued the electric utility to block a New Fortress Energy unit's 10-year takeover of power generation assets. A deal to put New Fortress subsidiary Genera PR LLC in control of PREPA's power plants—responsible for nearly 70% of the island's generation capacity—would create a monopoly in violation of local law, the Unión de Trabajadores de La Industria Eléctrica y Riego, or UTIER, said in a complaint filed Friday in the US District Court for the District of Puerto Rico. PREPA Plan Meanwhile, the Financial Oversight and Management Board for Puerto Rico said June 17, 2023, that it has been working to finalize the revised Fiscal Plan for the Puerto Rico Electric Power Authority (PREPA). That process was set back by the Oversight Board's receipt and review of new information from, among others, PREPA, LUMA Energy LLC, and Genera PR. Such data and its impact on the projections included in the 2023 PREPA Fiscal Plan will determine amendments that will be required to the PREPA Plan of Adjustment to maintain its feasibility. The Oversight Board believes it is in all parties' best interests that it simultaneously certify the 2023 PREPA Fiscal Plan and specify any necessary amendments to the Plan of Adjustment. Therefore, the Oversight Board informed the Court that it could not responsibly certify the 2023 PREPA Fiscal Plan by its anticipated deadline of June 16, 2023. The Oversight Board is committing by no later than Friday, June 23, 2023 to certify the 2023 PREPA Fiscal Plan and to identify any necessary amendments to the Plan of Adjustment. The amendments may or may not require resolicitations but given the proximity of the confirmation hearing's commencement date, it is likely the Oversight Board (and other parties) may seek to change the confirmation schedule based on these developments, especially the June 26, 2023 deadline for witness declarations because any amendments could impact witness declarations. The Oversight Board requested that the Court extend the deadline for the Court's requested status report on the 2023 PREPA Fiscal Plan from June 21, 2023, to June 28, 2023. The Oversight Board will meet and confer with counsel for objectors as soon as practicable after the 2023 PREPA Fiscal Plan is certified. 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. PURDUE PHARMA: Wants Chapter 11 Stay Extended to Implement Plan --------------------------------------------------------------- Vince Sullivan of Law360 reports that bankrupt drugmaker Purdue Pharma LP told a New York judge Friday, June 16, 2023, that it does not anticipate any opposition to its motion to extend the Chapter 11 stay of litigation against nondebtor third parties that has been in place for several years, saying the termination of the stay would harm the implementation of its plan. In the case PURDUE PHARMA L.P., et al., Plaintiffs, v. COMMONWEALTH OF MASSACHUSETTS, et al., Defendants, Adv. Pro. No. 19-08289 (SHL), In re PURDUE PHARMA L.P., et al. (Bankr. S.D.N.Y. Case No. 19-23649), Purdue Pharma L.P. and its affiliated debtors seek an order extending the preliminary injunction issued on Nov. 6, 2019 and subsequently amended and extended by the Court through and including the date that is the earlier of: (1) the date that an order confirming a plan of reorganization is entered and not subject to any stay, including the stay pursuant to Federal Rule of Bankruptcy Procedure 3020(e); and (2) the date 30 days after entry of an opinion or order vacating or reversing the May 30, 2023 judgment of the United States Court of Appeals for the Second Circuit in the appeals consolidated and captioned as In re Purdue Pharma L.P. et al., No. 22-110-bk(L) (the "Second Circuit Decision"). According to the Debtors, allowing hundreds or thousands of civil actions to resume or commence would deal a crushing blow to these chapter 11 cases. By contrast, the Preliminary Injunction has now been in place for over three years and has been extended numerous times to afford the Debtors and all interested parties the opportunity to negotiate, craft, and confirm a global resolution in the best interests of all creditors. Now that the Second Circuit has affirmed the Bankruptcy Court's Confirmation Order, this Extension is all the more necessary, and is tailored to preserve the monumental progress that has been made to date while providing the Debtors the ability to pursue a new order confirming the Plan and for any further appellate review of the Plan to conclude, all in an orderly fashion. "This Court previously found that the Debtors presented a reasonable likelihood of a successful reorganization even after the Confirmation Order was vacated by the District Court (Dec. 29, 2021 Hr’g Tr. 78:18-79:9), and would still present such a reasonable likelihood even "if the district court’s reversal is ultimately upheld" because "the bankruptcy process on remand is still reasonably likely to provide an option for a negotiated global solution for the benefit of all stakeholders provided that the parties be given sufficient chance to negotiate with the guidance of any decisions on appeal." (Feb. 1, 2023 Hr'g Tr. 24:11-18). It is all the more apparent that the Debtors present a reasonable likelihood of successful reorganization now that the Second Circuit has affirmed the Confirmation Order. See Dunaway, 619 B.R. at 59 (holding that there is a reasonable likelihood of successful reorganization "so long as the prospects of reorganization remain viable, and if the Debtors are substantially more likely to reorganize with the injunction in place" (internal quotation marks and citations omitted))," Purdue Pharma said in court filings. "It also continues to be true that the Preliminary Injunction is essential to avoid imminent and irreparable harm to the Debtors' reorganization and the interests of all creditors. The Second Circuit Opinion observed that the litigation free-for-all that would occur absent this bankruptcy case would be unfair and value-destructive, forcing "many victims of the opioid crisis [to] go without any assistance and face an uphill battle of litigation (in which a single claimant might disproportionately recover) without fair distribution." In re Purdue Pharma L.P. et al., 19-08289-shl slip op. at 70-71. This Court has repeatedly found, based on the extensive and uncontroverted record before it, that lifting the Preliminary Injunction would result in precisely that kind of destructive and self-defeating litigation free-for-all that prevailed before the Preliminary Injunction issued, and that would irreparably harm the Debtors' prospects for reorganization. (See Feb. 1, 2023 Hr'g Tr. 24:19-24 ("By contrast, lifting the injunction will revive the litigation free-for-all that existed before the injunction was issued and it will lead to destruction of billions of dollars of value, undoing the prospect of any comprehensive resolution as each party will look out for its own parochial interests.").) That finding remains all the more true today." About Purdue Pharma LP Purdue Pharma L.P. and its subsidiaries -- http://www.purduepharma.com/-- develop and provide prescription medicines and consumer products that meet the evolving needs of healthcare professionals, patients, consumers and caregivers. Purdue's subsidiaries include Adlon Therapeutics L.P., focused on treatment for Attention-Deficit/Hyperactivity Disorder (ADHD) and related disorders; Avrio Health L.P., a consumer health products company that champions an improved quality of life for people in the United States through the reimagining of innovative product solutions; Imbrium Therapeutics L.P., established to further advance the emerging portfolio and develop the pipeline in the areas of CNS, non-opioid pain medicines, and select oncology through internal research, strategic collaborations and partnerships; and Greenfield Bioventures L.P., an investment vehicle focused on value-inflection in early stages of clinical development. Opioid makers in the U.S. are facing pressure from a crackdown on the addictive drug in the wake of the opioid crisis and as state attorneys general file lawsuits against manufacturers. More than 2,000 states, counties, municipalities and Native American governments have sued Purdue Pharma and other pharmaceutical companies for their role in the opioid crisis in the U.S., which has contributed to the more than 700,000 drug overdose deaths in the U.S. since 1999. OxyContin, Purdue Pharma's most prominent pain medication, has been the target of over 2,600 civil actions pending in various state and federal courts and other fora across the United States and its territories. On Sept. 15 and 16, 2019, Purdue Pharma L.P. and 23 affiliated debtors each filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 19-23649), after reaching terms of a preliminary agreement for settling the massive opioid litigation. The Debtors' consolidated balance sheet as of Aug. 31, 2019, showed $1.972 billion in assets and $562 million in liabilities. U.S. Bankruptcy Judge Robert Drain oversees the cases. The Debtors tapped Davis Polk & Wardwell, LLP and Dechert, LLP, as legal counsels; PJT Partners as investment banker; AlixPartners as financial advisor; and Grant Thornton, LLP as tax structuring consultant. Prime Clerk, LLC, is the claims agent. Akin Gump Strauss Hauer & Feld LLP and Bayard, P.A., represent the official committee of unsecured creditors appointed in the Debtors' bankruptcy cases. David M. Klauder, Esq., is the fee examiner appointed in the Debtors' cases. The fee examiner is represented by Bielli & Klauder, LLC. * * * U.S. Bankruptcy Judge Robert Drain in early September 2021 approved a plan to turn Purdue into a new company (Knoa Pharma LLC) no longer owned by members of the Sackler family, with its profits going to fight the opioid epidemic. The Sackler family agreed to pay $4.3 billion over nine years to the states and private plaintiffs and in exchange for a lifetime legal immunity. The deal resolves some 3,000 lawsuits filed by state and local governments, Native American tribes, unions, hospitals and others who claimed the company's marketing of prescription opioids helped spark and continue an overdose epidemic. Separate appeals to approval of the Plan have already been filed by the U.S. Bankruptcy Trustee, California, Connecticut, the District of Columbia, Maryland, Rhode Island and Washington state, plus some Canadian local governments and other Canadian entities. In early March 2022, Purdue Pharma reached a nationwide settlement over its role in the opioid crisis, with the Sackler family members boosting their cash contribution to as much as $6 billion. The settlement was hammered out with attorneys general from the eight states -- California, Connecticut, Delaware, Maryland, Oregon, Rhode Island, Vermont and Washington -- and D.C. who had opposed the previous settlement. RADIATE HOLDCO: MetWest FRI Marks $249,300 Loan at 18% Off ---------------------------------------------------------- Metropolitan West Fund's Floating Rate Income Fund has marked its $249,369 loan extended to Radiate Holdco LLC to market at $205,072 or 82% of the outstanding amount, as of March 31, 2023, according to a disclosure contained in MetWest Fund's Form N-CSR for the Fiscal year ended March 31, 2023, filed with the Securities and Exchange Commission. Floating Rate Income Fund is a participant in a First Lien Term Loan (LIBOR plus 5.50%) to Radiate Holdco LLC. The loan accrues interest at a rate of 8.11% per annum. The loan matures on September 25, 2026. The Metropolitan West Funds is an open-end management investment company organized as a Delaware statutory trust on December 9, 1996 and registered under the Investment Company Act of 1940, as amended. Metropolitan West Asset Management, LLC, a federally registered investment adviser, provides the Funds with investment management services. The Trust currently consists of 14 separate portfolios. Radiate Holdco LLC, also known as Astound Broadband, and backed by Stonepeak, is a broadband communications services provider and cable operator doing business via regional providers RCN, Grande Communications, Wave Broadband and enTouch Systems. RADNET INC: S&P Upgrades ICR to 'B+' on Debt Prepayment ------------------------------------------------------- S&P Global Ratings raised its issuer credit rating to 'B+' from 'B' on Los Angeles, California-based RadNet Inc. At the same time, S&P also raised its issue-level rating on the revolving credit facility and first-lien term loan to 'B+' from 'B'. The '3' recovery rating indicates our expectation of significant (50%-70%; rounded estimate: 60%) recovery in the event of a default. S&P said, "The stable outlook reflects our expectation that RadNet will maintain EBITDA margin above 20%, aided by improving labor trends, resulting in S&P Global Ratings-adjusted debt to EBITDA in the range of 4x-5x. We also believe the company will continue its disciplined de novo and joint venture investment strategy." RadNet has maintained disciplined approach toward acquisitions, de novo and joint ventures strategy, while focusing on deleveraging over the past five years. RadNet's revenue increased by 1.5x over the past five years, while maintaining a disciplined growth strategy. Over the past several years it acquired numerous facilities and developed close to 50 facilities, primarily through joint ventures. As of March 31, 2023, RadNet operated 363 centers, up from 297 in 2017. Approximately 33% of RadNet centers are held within joint ventures with large health systems, and we believe it's strategic development plans could expand this percentage to approximately 50% of all centers within the next five years. RadNet has maintained S&P Global Ratings-adjusted leverage below 5.0x since 2018 despite acquisitions, capital expenditure (capex) investments, and challenging labor markets. S&P Global Ratings-adjusted leverage in 2022 (including $150 million of debt at subsidiary NJIN) increased temporarily above 5.0x primarily due to lower profitability following higher staffing expenses. RadNet's recently closed public equity offering with net proceeds of $245 million proceeds will be used to reduce leverage by prepaying about $100 million of its term loan, cover some working capital needs, and help fund elevated near-term growth capital expenditures. S&P said, "We expect only moderate free cash flow generation during the next two years as the company aggressively invests most of its cash from operations into growth capex. RadNet's reported free cash flow was constrained in 2021 ($6.5 million) and 2022 ($26.9 million) and we expect that to continue in 2023 due to significant investments in new de novo facilities. We expect reported cash flow to improve as these growth investments subside in 2024. Our expectation also includes 4%-5% same-site volume growth, improving labor market trends with declining premium pay and number of open positions, and decreasing losses from its AI (Artificial Intelligence) segment. However, we believe some level of permanently higher labor costs for staff and radiologists will be somewhat of a margin headwind. RadNet has hedged its interest rate position by capping $100 million notional amount with LIBOR locked at 1.96% expiring in October 2023 and $400 million notional amount locked at 2.05% expiring in October 2025. This somewhat protects Radnet's exposure to rising interest rate environment." RadNet's scale of business, multi-modality sites, and strong market position in its core markets will help it maintain its market leadership. Most of the company's facilities are multi-modality sites offering numerous imaging combinations including magnetic resonance imaging (MRI), computed tomography (CT), positron emission tomography (PET), nuclear medicine, ultrasound, X-ray, and other related procedures. S&P believes this model provides a competitive advantage because physicians can service most patient needs in the same center. RadNet's services and operations are concentrated in seven populous states--Arizona, California, Delaware, Florida, Maryland, New Jersey, and New York. RadNet also benefits from a modality shift toward advanced mammography imaging. With its investment in technology and AI, it can shorten scan times, which should effectively increase capacity and better support increased demand. It also benefits from multi-modality facilities along with strong payor diversity – 55% from commercial payors, 11% from Managed care capitated contracts, 22% from Medicare, 3% from Medicaid. RadNet generates about 11% of revenue from capitated contracts with 33 medical groups in California covering over 2.0 million lives. It receives a per-member, per-month fixed price for providing radiology services to these patients. The company bears the full utilization risk through these contracts. The company has the ability to raise annual rates 1%-3% on these contracts (many of these contracts are over 10 years old), and S&P is confident in the company's ability to manage this capitation risk. While margins are slightly lower than fee-for-service revenue, there is little bad debt expense and billing and collection costs. S&P said, "The stable outlook reflects our expectation that the company will maintain EBITDA margin above 20% as the labor market normalizes and profits from its AI segment begin in 2024, resulting in S&P Global Ratings-adjusted debt to EBITDA in the 4x-5x range. We also believe the company will continue to pursue its de novo investments and increase joint venture investments with health partners, while focusing on deleveraging. "We could downgrade our rating on RadNet if the company underperforms at such a level that we expect S&P Global Ratings-adjusted debt to EBITDA to remain above 5.5x with poor prospects of improving. This could occur from elevated labor challenges, a debt-funded transaction, or if its investments in AI fall short of profitability expectations. Under such a scenario, we would expect EBITDA margin contraction of more than 450 basis points (bps) from our base-case scenario. "Although unlikely over next 12 months due to its size and narrow focus on radiology, we could raise our ratings on RadNet if we believe the company can achieve and maintain S&P Global Ratings-adjusted leverage below 4.0x on sustained basis, while generating sustainable reported free operating cash flow (FOCF) to debt above 12%. In this scenario, we would expect RadNet to maintain conservative acquisition and financial policies." ESG credit indicators: E-2, S-2, G-2 RAW INDULGENCE: Cash Collateral Access Thru July 15 OK'd -------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York authorized Raw Indulgence, Ltd. to use cash collateral on an interim basis in accordance with the budget, with a 10% variance, through July 15, 2023, at 5 p.m. The Debtor requires the use of KeyBank National Association's cash collateral on a continued basis to pay ordinary operating expenses relating to its business, including among other things, payroll, taxes and payments to ordinary course service providers and vendors. Prior to the Petition Date, the Debtor entered into a U.S. Small Business Administration Loan dated March 19, 2015, with KeyBank, whereby KeyBank loaned the principal sum of $890,000 to the Debtor. The obligation to the bank was secured pursuant to, inter alia, a Security Agreement dated March 19, 2015. The Debtor acknowledges that on January 29, 2022, it obtained an EIDL loan in the amount of $2 million from the SBA, at an interest rate of 3.75%. The loan was memorialized in a promissory note. In addition to the existing rights and interests of KeyBank, the SBA, and other secured parties in the cash collateral and for the purpose of adequately protecting it from diminution in value of the collateral, KeyBank, the SBA and the Other Secured Parties are granted valid, enforceable, fully-perfected, security interests -- to the extent the Pre-Petition Liens were valid, perfected and enforceable as of the Petition Date and in the continuing order of priority that existed as of the Petition Date -- on all the Debtor's property, in the same validity, order and priority as the Pre-Petition Liens, subject, in accordance with the priority as set forth therein, and subordinate only to a carve-out for: (i) United States Trustee fees pursuant to 28 U.S.C. Section 1930, together with interest, if any, pursuant to 31 U.S.C. Section 3717 and any Clerk's filing fees; and (ii) the fees and commissions of a hypothetical Chapter 7 trustee in an amount not to exceed $10,000. In addition, the Replacement Liens granted will not attach to the proceeds of any recoveries of estate causes of action under 11 U.S.C. Sections 542 through 553. As further adequate protection, the Debtor will make monthly payments to KeyBank, in accordance with the Note, not later than the thirtieth day of each month (and the last day of February), in the estimated amount of $10,544 and to the SBA in the amount of $5,000. The Debtor's right to use the cash collateral will terminate immediately upon the occurrence of any of these events: a) The entry of an order of the Court converting or dismissing the Chapter 11 case; b) The entry of an order of the Court confirming a plan of reorganization in the Chapter 11 case; c) The Debtor's failure (i) to perform any of its obligations under the Order, and (ii) to cure such Default within 10 business days after the giving of written notice thereof to the Debtor, KeyBank, the SBA, and the Other Secured Parties, the United States Trustee and any official committee appointed in the Chapter 11 Case by KeyBank, the SBA, and the Other Secured Parties, subject to the Debtor's right to seek an expedited hearing during the Cure Period to challenge whether a Default has occurred; d) the amendment, supplementation, waiver or other modification of all or part of this Order without KeyBank, the SBA, and the Other Secured Parties having been given at least 72 hours advance, written notice, by overnight service upon them (unless otherwise prescribed by the Bankruptcy Court having jurisdiction over the Debtor's case). However, in no event will the Debtor seek emergency relief concerning the Order from the Court without KeyBank, the SBA, and the Other Secured Parties having been given at least 24 hours advance, actual notice (via telephone or electronic mail); or e) the termination of all or substantially all of the operations of the Debtor, whether by voluntary act(s) or omission(s) of the Debtor, or otherwise. A final hearing on the matter is set for July 18, 2023 at 2 p.m. A copy of the Court's order is available at https://urlcurt.com/u?l=ggpgO8 from PacerMonitor.com. About Raw Indulgence Raw Indulgence is a protein bar manufacturer in Elmsford, NY. Raw Indulgence sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 23-22350) on May 8, 2023. In the petition filed by Alice Benedetto, as chief executive officer, the Debtor reported total assets of $708,412 and total liabilities of $3,888,567. The case is overseen by the Honorable Bankruptcy Judge Sean H. Lane. The Debtor is represented by Robert L. Rattet, Esq. at DAVIDOFF HUTCHER & CITRON LLP. RAY'S AUTO: Seeks to Hire Kevin K. Kercher as Bankruptcy Counsel ---------------------------------------------------------------- Ray's Auto Restoration, LLC seeks approval from the U.S. Bankruptcy Court for the Eastern District of Pennsylvania to employ the Law Office of Kevin K. Kercher, Esq., as its counsel. The firm will render these services: (a) advise the Debtor with respect to its powers and duties in the continued management of its assets; (b) prepare legal papers; (c) represent the Debtor in any matters involving contests with secured or unsecured creditors; (d) assist the Debtor in providing legal services required to negotiate and prepare a plan of reorganization; and (e) perform such other necessary legal services for the Debtor. Kevin Kercher, Esq., will be paid at his hourly rate of $350. Mr. Kercher disclosed in a court filing that his firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Kevin K. Kercher, Esq. Law Office of Kevin K. Kercher, Esq., PC 881 3rd St. Whitehall, PA 18052 Telephone: (610) 264-4120 Email: kevin@kercherlaw.com About Ray's Auto Restoration Ray's Auto Restoration, LLC filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. E.D. Pa. Case No. 23-11716) on June 12, 2023, with as much as $1 million in both assets and liabilities. Ray Mamone, president, signed the petition. Judge Patricia M. Mayer oversees the case. The Law Office of Kevin K. Kercher, Esq., PC serves as the Debtor's counsel. RIALTO BIOENERGY: Taps Levene Neale Bender Yoo & Golubchik as Atty. ------------------------------------------------------------------- Rialto Bioenergy Facility, LLC seeks approval from the U.S. Bankruptcy Court for the Southern District of California to employ Levene, Neale, Bender, Yoo & Golubchik, LLP as bankruptcy counsel. The firm will render these services: (a) advise the Debtor with regard to the requirements of the bankruptcy court, Bankruptcy Code, Bankruptcy Rules, and the Office of the U.S. Trustee as they pertain to the Debtor's bankruptcy estate; (b) advise the Debtor with regard to certain rights and remedies of its bankruptcy estate and the rights, claims and interests of creditors; (c) represent the Debtor in any proceeding or hearing in the Bankruptcy Court involving its bankruptcy estate unless the Debtor is represented in such proceeding or hearing by other special counsel; (d) conduct examinations of witnesses, claimants or adverse parties and represent the Debtor in any adversary proceeding except to the extent that any such adversary proceeding is in an area outside of the firm's expertise or which is beyond its staffing capabilities; (e) prepare and assist the Debtor in the preparation of reports, applications, pleadings, and orders; (f) represent the Debtor with regard to negotiating, documenting, seeking Bankruptcy Court approval of, implementing, and enforcing any transactions outside the ordinary course of business; (g) assist the Debtor in any asset recovery, sale or liquidation process; (h) assist the Debtor in the negotiation, formulation, preparation and confirmation of a plan of reorganization or liquidation and the preparation and approval of a disclosure statement in respect of the plan; (i) investigate, evaluate, and prosecute objections to claims as may be appropriate; and (j) perform any other services which may be appropriate in the firm's representation of the Debtor during its bankruptcy case. The hourly rates of the firm's counsel and staff are as follows: David W. Levene $690 David L. Neale $690 Ron Bender $690 Timothy J. Yoo $690 David B. Golubchik $690 Gary E. Klausner $690 Edward M. Wolkowitz $690 Martin J. Brill $690 Beth Ann R. Young $690 Eve H. Karasik $690 Monica Y. Kim $675 Daniel H. Reiss $675 Philip A. Gasteier $675 Todd A. Frealy $675 Kurt Ramlo $675 Richard P. Steelman, Jr. $675 Zachary Page $675 Juliet Y. Oh $650 Todd M. Arnold $650 Carmela T. Pagay $650 Anthony A. Friedman $650 Krikor J. Meshefejian $650 John-Patrick M. Fritz $650 Joseph M. Rothberg $650 Jeffrey Kwong $625 Lindsey L. Smith $575 Robert Carrasco $450 Paraprofessionals $295 During the one-year period prior to the petition date, the Debtor paid the firm a retainer in the amount of $170,000. Ron Bender, Esq., a managing partner at Levene, Neale, Bender, Yoo & Golubchik, disclosed in a court filing that the firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Ron Bender, Esq. Monica Y. Kim, Esq. Krikor J. Meshefejian, Esq. Levene, Neale, Bender, Yoo & Golubchik LLP 2818 La Cienega Avenue Los Angeles, CA 90034 Telephone: (310) 229-1234 Facsimile: (310) 229-1244 Email: rb@lnbyg.com myk@lnbyg.com kjm@lnbyg.com About Rialto Bioenergy Facility Rialto Bioenergy Facility, LLC owns and operates a multi-feedstock bioenergy facility in Rialto, Calif., which converts organic waste, such as food waste, yard waste, and biosolids into carbon-negative renewable natural gas, with capability to also generate renewable electricity and soil amendment/fertilizer. The facility, the largest in North America and valued at $196.6 million, utilizes anaerobic digestion technology to convert the organic waste received from waste haulers into renewable natural gas. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Calif. Case No. 23-01467) on May 25, 2023, with $100 million to $500 million in both assets and liabilities. Yaniv Scherson, vice president, signed the petition. Ron Bender, Esq., at Levene, Neale, Bender, Yoo and Golubchik LLP, represents the Debtor as legal counsel. B. Riley Securities, Inc. serves as the Debtor's financial advisor. UMB Bank, N.A. as Indenture Trustee is represented by Nahal Zarnighian, Esq., at Ballard Spahr, LLP. ROCKPORT CO: Files for Chapter 11 for 2nd Time in 5 Years --------------------------------------------------------- Nate Delesline III of Retail Dive reports that for the second time in five years, shoe company Rockport Group filed for Chapter 11 bankruptcy. Despite generating over $203 million in revenue in 2022, the company was "left with an inadequate liquidity cushion to survive further economic challenges," according to court documents. Rockport claims liabilities and assets of $50 million to $100 million and says it owes its top five creditors-- all vendors or suppliers -- nearly $47 million, according to the bankruptcy petition filed in federal court in Delaware. The company also reports that it has nearly $100 million in funded debt obligations; about $61 million of that is due in August 2023. In May 2023, the company notified state officials that it may close its Massachusetts headquarters by July 2023. That move could eliminate about 150 jobs, The Boston Globe reported. Rockport is best known for its rubber-soled casual shoes. The company claims it was the first to introduce that type of design to the market in an era when other shoemakers still exclusively focused on leather-soled shoes. It also sells sneakers, boat shoes and sandals. The company's 50-plus-year history began in 1971 in Massachusetts when father and son Saul and Bruce Katz founded the company. Saul Katz had served as president of New Hampshire-based Hubbard Shoe Co. until that company closed in the late 1960s. In 1986, the Katz's sold Rockport to Reebok for $118 million. Rockport remained part of Reebok for over 30 years. It later became an independently operated subsidiary of Adidas. That company, in turn, sold Rockport to a joint venture of Berkshire Hathaway and New Balance in 2015. But the separation from Adidas was costly and caused the business to lose its financial footing. In 2017, the joint venture gave its interest in Rockport to a group of secured lenders. After the 2018 bankruptcy sale, Rockport restructured itself by expanding its casual product offerings, trying to attract younger customers and simplifying its business model. The court closed that case in 2020. Part of that restructuring included closing all Rockport retail stores in the U.S. and shifting to a more e-commerce-based model of retail. The company also worked to build its e-commerce wholesale channels. Despite those efforts, Rockport's business still struggled with high overhead costs and weakened demand for its core products due to the COVID-19 pandemic. In 2020, the company said its revenue fell to $162 million from $275 million in 2019. Rockport's financial situation reached a critical moment about a year ago. Last spring, the company significantly increased its inventory purchases for the fall and winter seasons anticipating a back-to-work increase in sales. "Unfortunately, that sales bump never materialized. Instead, in response to inflationary pressures and weakening economic conditions, the Debtors' wholesale customers and distributors canceled or materially cut back on orders, leaving Rockport holding significant excess inventory," Joseph Marchese, chief restructuring officer of CB Marathon Midco, Rockport’s parent company, said in a court filing. "This, combined with supply chain challenges and higher interest rates, has made it increasingly difficult for the Debtors to service their funded debt obligations and satisfy trade payables in a sustainable manner," Marchese said. The company defaulted on some of its borrowings and later entered into a forbearance agreement, which it also defaulted. In May 2023, Rockport signed a non-binding letter of intent to sell some of its assets. The company and its counterparty remain in negotiations to enter a stalking horse asset purchase agreement. Rockport said it plans to continue operations during the Chapter 11 proceedings. The company operates internationally and says it has 30 distributor partners in over 60 countries with more than 1,100 points of sale. Its inventory is sourced from manufacturers in China, India, Bangladesh, Vietnam, and Brazil. Together, those partners manufactured over 4.8 million pairs of shoes in 2022, the company said. About Rockport Co. LLC Rockport Co. LLC -- https://www.rockport.com/ -- is a company that offers a collection of men's and women's brands that provide comfortable shoes for every occasion. The Rockport Company and its subsidiaries are global designers, distributors, and retailers of comfort footwear in more than 50 markets worldwide. The Rockport Company, et al., first sought Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 18-11145) on May 14, 2018. The business was taken out of bankruptcy after the Court approved the sale of substantially all of The Rockport Company's assets to an affiliate of Charlesbank Equity Fund IX, LP. In the prior Chapter 11 cases, the Debtors tapped Richards, Layton & Finger, P.A. as bankruptcy counsel; Borden Ladner Gervais LLP as Canadian counsel; Houlihan Lokey Capital, Inc., as investment banker; and Alvarez & Marsal North America LLC, as restructuring advisor. The official committee of unsecured creditors tapped Cooley LLP, and Whiteford, Taylor & Preston LLC as counsel. Pachulski Stang Ziehl & Jones LLP represented the Prepetition Noteholders and DIP Note Purchasers. Goodwin Procter LLP and Pepper Hamilton LLP advised CB Marathon Opco, LLC, an affiliate of Charlesbank Equity Fund IX, Limited Partnership, the bidder. Rockport Co. LLC and affiliates again sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 23-10774) on June 15, 2023. In the petition filed by Joseph Marchese, as chief restructuring officer, the Debtor reported assets and liabilities between $50 million and $100 million each. In the new Chapter 11 cases, the Debtors tapped POTTER ANDERSON & CORROON LLP as counsel; STIFEL FINANCIAL CORP. as investment banker; and PKF CLEAR THINKING as personnel provider. EPIQ CORPORATE RESRUCTURING, LLC, is the claims agent. ROLPA TRUCKING: Starts Subchapter V Case ---------------------------------------- Rolpa Trucking LLC filed for relief under Subchapter V of Chapter 11 of the Bankruptcy Code. According to court filings, Rolpa Trucking 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 June 27, 2023 at 2:00 p.m. at John A. Campbell US Courthouse, 5th Floor, 113 St. Joseph Street, Mobile, AL 36602. About Rolpa Trucking Rolpa Trucking LLC is part of the general freight trucking industry. Rolpa Trucking LLC sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Ala. Case No. 23-11268) on June 5, 2023. In the petition filed by Roland J. Collins, as president, the Debtor reported assets between $500,000 and $1 million and liabilities between $1 million and $10 million. The case is overseen by Honorable Bankruptcy Judge Henry A. Callaway. D. Parker Sweet has been appointed as Subchapter V trustee. The Debtor is represented by: Kevin M Ryan, Esq. Ryan Legal Services, Inc. 12761 Union Church Dr Grand Bay, AL 36541 Tel: (251) 431-6012 Fax: (877) 499-5130 Email: ryanlegalservices@gmail.com SANO ARTISAN: Seeks to Hire Berger Fischoff as Bankruptcy Counsel ----------------------------------------------------------------- Sano Artisan Bakers, Ltd seeks approval from the U.S. Bankruptcy Court for the Eastern District of New York to hire Berger, Fischoff, Shumer, Wexler & Goodman, LLP as its attorney. The firm's services include: a. advising the Debtor with respect to its powers and duties in the continued management of its business and property; b. representing the Debtor at court hearings on matters pertaining to its affairs; c. assisting the Debtor in the preparation and negotiation of a plan of reorganization with its creditors; d. preparing legal papers; and e. other legal services necessary to administer the Debtor's Chapter 11 case. The firm's hourly rates are as follows: Partners $550 - $635 Associates $450 - $500 Paralegals $185 Berger Fischoff will be paid a retainer of $20,000, plus $1,738 for the filing fee. Berger Fischoff does not represent any interest adverse to the Debtor and its bankruptcy estate, according to court papers filed by the firm. The firm can be reached through: Heath S. Berger, Esq. Berger Fischoff Shumer Wexler & Goodman LLP 6901 Jericho Turnpike #230 Syosset, NY 1179 Phone: 800-806-1136 Email: hberger@bfslawfirm.com About Sano Artisan Bakers Sano Artisan Bakers, Ltd sought protection for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No. 23-41716) on May 17, 2023, listing $100,001 to $500,000 in both assets and liabilities. Judge Nancy Hershey Lord presides over the case. Heath S Berger, Esq. at Berger, Fischoff, Shumer, Wexler & Goodman, LLP serves as the Debtor's counsel. SCANDINAVIAN AIRLINES: Extends $900 Million Equity Raise Deadline ----------------------------------------------------------------- Najiyya Budaly of Law360 reports that SAS has said it will extend the deadline for a planned 9.5 billion Swedish kronor ($900 million) equity raise by approximately four weeks after receiving "substantial interest" from investors, as the Scandinavian airline looks to emerge from U.S. Chapter 11 bankruptcy proceedings. 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. SCCW INDUSTRIAL: Seeks to Hire Maida Clark Law Firm as Counsel -------------------------------------------------------------- SCCW Industrial Services, LLC seeks approval from the U.S. Bankruptcy Court for the Eastern District of Texas to employ Maida Clark Law Firm, PC as its bankruptcy counsel. The firm will render these services: (a) advise the Debtor with respect to its powers and duties in the continued operation of its business and management of its property; (b) assist in the preparation of schedules, financial statements and operating reports; (c) prepare legal papers; and (d) perform all other legal services for the Debtor, which may be necessary. The hourly rates of the firm's counsel and staff are as follows: Frank J. Maida $400 Tagnia Fontana Clark $350 Paralegal $85 Frank Maida, Esq., an attorney at Maida Clark Law Firm, disclosed in a court filing that the firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Frank J. Maida, Esq. Maida Clark Law Firm, PC 4320 Calder Avenue Beaumont, TX 77706 Telephone: (409) 898-8200 Facsimile: (409) 898-8400 Email: docs@maidaclarklaw.com About SCCW Industrial Services SCCW Industrial Services, LLC filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. E.D. Texas Case No. 23-10209) on June 5, 2023, with $768,751 in total assets and $2,226,840 in total liabilities. Clint T. West, president, signed the petition. Judge David R. Jones oversees the case. Frank J. Maida, Esq., at Maida Clark Law Firm, PC serves as the Debtor's counsel. SCH SHEET METAL: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: SCH Sheet Metal, Inc. 100 Raynor Avenue Ronkonkoma NY 11779 Chapter 11 Petition Date: June 23, 2023 Court: United States Bankruptcy Court Eastern District of New York Case No.: 23-72257 Judge: Hon. Louis A. Scarcella Debtor's Counsel: Barry D. Haberman, Esq. LAW OFFICE OF BARRY D. HABERMAN 254 South Main Steet, #404 New City, NY 10958 Tel: 845-638-4294 Email: bdhlaw@aol.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Cathi Houlihan as president. The Debtor failed to include in the petition a list of its 20 largest unsecured creditors. A full-text copy of the petition is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/DUOPT7A/SCH_Sheet_Metal_Inc__nyebke-23-72257__0001.0.pdf?mcid=tGE4TAMA SCHAFFNER PUBLICATIONS: Unsecureds to Get 4.9 Cents on Dollar ------------------------------------------------------------- Schaffner Publications Inc. filed with the U.S. Bankruptcy Court for the Northern District of Ohio a Subchapter V Plan dated June 20, 2023. Formed in 1985, the Debtor is an active and operating Ohio Corporation. The Debtor is owned by John Schaffner, and his wife, Mary Schaffner. The Debtor's business operations consist of publishing, for local consumption, a newspaper which operates under the name of the Beacon. The Beacon began publishing in February of 1983. At the commencement of the case, the Debtor's obligations consisted of four types of debts: (1) debts incurred for extensions of credit provided to the Debtor and secured against all of the Debtor's property; (2) Merchant Cash Advances in which a security interest is claimed just against the Debtor's receivables; (3) prepetition compensation owed to those working for the Debtor; and (4) general unsecured debt, mainly vendors. As it regards these categories of debts, the Debtor estimates that the total claims for each category are respectively, and in the just set forth, as follows: (1) $221,312; (2) $179,365; (3) $50,612; and (4) $16,450. At the time of filing, the Debtor believes that it was current on all tax obligations. The Plan Proponent's financial projections show that the Debtor will have total projected disposable income for the 3-year term of this Plan of $9,675.00. The final Plan payment is expected to be paid on the Third Anniversary from the Effective Date of this Plan. This Plan of Reorganization proposes to pay creditors of the Debtor from the future cash flow of its business operations. Non-priority unsecured creditors holding allowed claims will receive an estimated distribution over the length of this Plan of $9,675.00 ("Total Disposable Income") which the proponent of this Plan has valued at approximately 4.9 cents on the dollar. Class 6 consists of General Unsecured Claims. Allowed unsecured claims will be paid pro-rata from the Debtor's Disposable Income, after and subject to the payment of those allowed administrative expenses and costs provides for in Article 3 of this Plan. In no event, however, shall allowed claims in this Class, as a group, receive less than the Liquidation Value of the Debtor's assets. No interest shall accrue on any Claims in this Class. The Debtor's Disposable Income shall be based upon the net income received by the Debtor based upon those cash flow projections. Based upon these projections, the Debtor's Total Disposable Income over the length of this Plan is $9,675.00. After and subject to the payment of those allowed administrative expenses and costs provided for in Article 3 of this Plan, the Debtor shall make equal quarterly payments of its Total Disposable Income, with such quarterly payments totaling $806.25. Such payments shall commence by the Debtor on the first day of month following the Effective Date of this Plan and shall continue to be made on the first day each month thereafter until completion of the Plan. Class 7 consists of the outstanding shares of stock held in the Debtor by Mr. Schaffner and Mrs. Schaffner. Confirmation of this Plan shall cause all prepetition stock issued by the Debtor to be revested in and retained by those entities holding an interest in the outstanding stock of the Debtor as of the Petition Date and shall be subject to and based upon the terms and conditions as they existed on the Petition Date including under any Articles of Incorporation, By-Laws and other duly executed corporate documents. The Plan will be implemented and funded through the future business operations of the Debtor. The Debtor may also seek to obtain post-confirmation financing, but this is not expected in the short term. As a part of its reorganization, the Debtor does not contemplate the sale of any assets except that assets may be sold to the extent that it is later determined they are no longer of a value to the Debtor's business operation or their useful life for the Debtor has expired. A full-text copy of the Subchapter V Plan dated June 20, 2023 is available at https://urlcurt.com/u?l=ZozkVj from PacerMonitor.com at no charge. Attorney for Debtor: Eric R. Neuman, Esq. Diller & Rice, LLC 124 E Main Street Van Wert, OH 45891 Phone: 419-238-5025 Email: Eric@drlawllc.com About Schaffner Publications Schaffner Publications Inc. is the publisher of a local newspaper, The Beacon. The Beacon began publishing in February of 1983. Schaffner Publications sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ohio Case No. 23-30489) on March 27, 2023. In the petition signed by John Schaffner, president, the Debtor disclosed up to $10 million in assets and up to $500 in liabilities. Judge Mary Ann Whipple oversees the case. Eric Neuman, Esq., at Diller and Rice, LLC, is the Debtor's legal counsel. SCHARN INDUSTRIES: Court OKs Cash Collateral Access Thru July 27 ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Massachusetts authorized Scharn Industries, LLC to use cash collateral through July 27, 2023, on the same terms and conditions as set forth in the Order dated April 5, 2023. As previously reported by the Troubled Company Reporter, Diverse Capital and Cloud Fund, LLC, through its servicing agent Delta Bridge Funding LLC, assert an interest in the Debtor's cash collateral. The Court said the Debtor may only use the cash collateral for the expenses and purposes set forth in the further budget submitted on June 5, 2023, excluding any fees and expenses for legal or professional fees. As provided in the Interim Orders and set forth at the hearing, the Debtor is limited to the amounts for expenses set forth in the budget, subject to no more than a 10% variance in the total expenses in any month. The Debtor is directed to file by July 21, 2023, (i) a reconciliation of budget to actual expenses with monthly totals and cash balances for the period ending July 15, and (ii) a projection of income and expenses through November 2023. A further hearing on the matter is set for July 26 at 10:15 a.m. A copy of the order is available at https://urlcurt.com/u?l=v84bx6 from PacerMonitor.com. About Scharn Industries Scharn Industries, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Mass. Case No. 23-10298) on Feb. 28, 2023. In the petition signed by Scott Scharn, manager, the Debtor disclosed up to $100,000 in assets and up to $1 million in liabilities. Judge Janet E. Bostwick oversees the case. The Debtor tapped Gary W. Cruickshank, Esq., at Cruickshank Law as legal counsel and Robert S. Widell as accountant. SECURE ENERGY: Fitch Hikes LongTerm IDR to BB-, Outlook Stable -------------------------------------------------------------- Fitch Ratings has upgraded the Long-Term Issuer Default Rating (IDR) for Secure Energy Services Inc. (Secure) to 'BB-' from 'B+' and assigned a Stable Rating Outlook. Fitch has also upgraded the senior unsecured instrument rating to 'BB-'/'RR4' from 'B+'/'RR4' and downgraded the second lien secured debt to 'BB-'/'RR4' from 'BB'/'RR2'. The upgrade reflects Secure's significantly better than expected financial performance since the July 2, 2021 closing of the merger with Tervita Corporation (Tervita), which, along with constructive oil prices, has driven better-than-expected FCF, in turn driving debt reduction capacity. Fitch expects debt reduction will continue in the near term via strong FCF generation while balancing shareholder returns. Fitch estimates 2023-2025 leverage will remain approximately 2.0x (per Fitch's calculation). In 2026, Fitch's price deck WTI price is USD 50/bbl, which if realized, could catalyze into a small uptick in leverage. Secure's 'BB-' rating reflects its leverage, margin stability during commodity downturns and inflationary periods, long-term relationship with top customers, and location-advantaged asset footprint across Western Canada. Concerns include outsized risks faced by smaller-scale, single basin focused energy companies; and an unexpected outcome of the current ongoing proceedings with the Competition Tribunal which negatively impacts the credit profile. KEY RATING DRIVERS Strong Leverage Position: Strong 2022 along with a constructive view of 2023, is expected to drive oil and gas activity levels in the regions where Secure operates, leading to increased volumes across its systems. Secure is also benefitting from enhanced operational scale due to the merger with Tervita and with post-merger integration fully complete, it exceeded the targeted CAD75 million synergy realization. A combination of these factors has allowed the company to nearly double its EBITDA in 2022 versus 2021, generating strong free cash flows which was primarily used towards debt reduction. Secure's leverage decreased significantly from approximately 4.2x in 2021 to 1.6x in 2022 and 1.7x in LTM 1Q23 (per Fitch's calculations). Fitch expects Secure's leverage to be approximately 2.0x in 2023-2025 with a small uptick in 2026. Critical Infrastructure Network: Secure's assets are strategically located, mostly across the conventional oil production region of the Western Canadian Sedimentary Basin (WCSB), providing location advantages. Secure's assets are capital intensive highly regulated infrastructure which requires deep technical expertise to operate, presenting barriers for new entrants. The company provides critical services to largely its oil and gas producer customers, and has a good asset utilization rate of approximately 65%. Fitch expects Secure to continue benefiting from the broader industry trend of producers continuing to outsource non-E&P activities. A large number of E&P companies however, handle these services in-house, and Fitch acknowledges the risk of Secure's customers becoming its competitors, should outsourcing become uneconomical, or if there is a change in industry trends. Forgiving Cash Flow Profile: Nearly 90% of Secure's revenue is generated under short-term fixed-fee contracts with no minimum volume protection. Though the fixed-fee nature of contracts removes direct commodity price exposure, lack of long-term contracts and volume protection exposes the company to volumetric and re-contracting risks; limiting visibility into Secure's future cash flow generation. Secure however, has maintained long-term relationship with top customers which are strong counterparties. Fitch acknowledges, the short-term nature of contracts does afford the company with flexibility to change rates and protect margins during commodity price downturns and high inflationary periods. The company in the past has executed on growth projects which had long-term take-or-pay type contracts, and Fitch expects Secure to continue executing on similar modest growth projects. While not expected in the medium term, a sizeable portion of the EBITDA derived from revenue assurance type contracts would likely be viewed by Fitch as indicative of a stronger credit profile. Geographic and Business Diversity: The majority of Secure's assets are located in the WCSB with a very small presence in North Dakota and Oklahoma. Though Tervita merger provided some geographic diversification, Secure retains the regional concentration risk which may disproportionately impact the WCSB, compared with midstream companies which have exposure to multiple basins. Post Tervita merger, over 60% of the EBITDA is expected to be driven by Secure's waste management business which provides some diversity to traditional midstream business. However, the largely short-term nature of contracts with no volume protection in this business, exposes the company to increased re-contracting and volumetric risks. Commissioner of Competition vs Secure: The Commissioner of Competition (Commissioner) on June 29, 2021, had challenged the merger of Secure and Tervita Corporation (Tervita) citing anti-competitive effects of the transaction. The Competition Tribunal (Tribunal) on March 3, 2023, ruled in favor of the Commissioner and ordered Secure to divest 29 facilities to restore competition. On March 24, 2023, Secure filed a notice of appeal on the Tribunal's decision along with a stay order which were approved by the Federal Court of Appeal on March 31, 2023. The final hearing of the appeal is scheduled for the week of June 19, 2023, with a final decision expected no sooner than the end of 2023. Management does not expect a meaningfully negative outcome of the appeal. However, if the decision were to go against Secure, Fitch believes the company will be able to strategically divest these assets ensuring minimal impact to credit profile. Fitch expects Secure will prudently deploy the sale proceeds towards debt reduction and value creation, which should offset some of the impact from EBITDA loss on credit. DERIVATION SUMMARY Secure is somewhat unique relative to Fitch's midstream coverage given its diversification along the midstream value chain, including its waste management business and a standalone corporate entity structure. Secure operates regionally concentrated crude oil gathering, processing and transportation systems, among others. The majority of Secure's EBITDA is generated under fixed-fee contracts with no minimum volume commitments. Similar to Secure, Medallion Gathering and Processing, LLC (Medallion; B+/Stable) is an oil gathering and intra-state transportation service provider with operations concentrated in the Permian basin (Midland). The majority of Medallion's EBITDA is generated under long-term fixed-fee acreage dedication contracts with no minimum volume commitments. Secure has greater operating scale with EBITDA expected to exceed well over CAD400 million in the medium-term, compared to approximately USD200 million at Medallion. Expected leverage is also a differentiating factor; Secure's 2022 leverage was approximately 1.6x which was more than two full turns lower compared with 4.0x at Medallion. Fitch forecasts Secure's leverage at approximately 2.0x in 2023, which is significantly lower compared with expectation for Medallion of at or below 4.0x. The majority of Medallion's volumes come from the Permian and the majority of Secure's volumes come from the WCSB. The Permian is regarded as one of the most prolific and low-cost production basins in North America. In addition, the Permian is location advantaged compared to the WCSB, being in proximity to demand centers (i.e., lower relative transportation costs). As such, oil and gas activity levels in the Permian is expected to be relatively more resilient versus the WCSB during commodity price downturns. Secure's larger scale and significantly lower leverage compared to Medallion are the primary drivers leading to a one-notch separation in their IDRs; more than offsetting the relative basin economics of the Permian versus the WCSB. Secure operates two crude oil pipelines which are underpinned by long-term take-or-pay contracts. However, its contribution to the overall EBITDA is small. Sunoco LP (SUN; BB+/Stable) is somewhat similar to Secure, which has only 25% of its volume taken by a subsidiary of 7-Eleven, Inc. under a long-term take-or-pay contract. However, SUN features a more resilient business model given that it serves a less volatile end market. Additionally, SUN has a much larger operational scale compared to Secure. The combination of these factors leads to the separation in SUN's and Secure's IDRs. Precision Drilling Corporation (PD; B+/Positive) is a peer insofar as it is exposed to Canadian oil & gas activity and features a standalone corporate structure, however, it has little direct business line overlap with Secure. KEY ASSUMPTIONS - Oil and gas activity levels in Western Canada and North Dakota consistent with Fitch's WTI price deck of USD 80/bbl in 2023, USD 70/bbl in 2024, USD 60/bbl in 2025, and USD 50/bbl thereafter; - Base interest rate for the credit facility and inflation reflects the Fitch Global Economic Outlook, e.g., 5.5% and 4% for 2023 and 2024 respectively for interest rates; and 3.7% and 2.7% for 2023 and 2024 respectively for inflation; - No meaningfully negative outcome of the Secure versus Competition Tribunal's proceedings; - Inflationary pressures lead to a slight drop in EBITDA margins in 2023 vs. 2022 and compressing further with lower commodity price driven activity levels and higher inflation; - Extension of revolving credit facility and timely refinancing of senior unsecured debt, both maturing in 2025; - Dividend increases in 2023 with modest growth thereafter; - Share buybacks expected to continue through 2023 with potential for further repurchases thereafter; - Prompt repurchase of the second lien secured notes; - CAD/USD rate of CAD1.35 over the forecast period. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: - EBITDA leverage expected to be sustained below 1.5x; - A sizeable acquisition which is financed in a credit supportive manner, and which meaningfully increases the consolidated EBITDA provided by long-term revenue assurance type contracts. Factors that could, individually or collectively, lead to negative rating action/downgrade: - EBITDA leverage expected to be at or above 2.3x; - A meaningfully negative outcome of the current ongoing proceedings between Secure and the Competition Tribunal. LIQUIDITY AND DEBT STRUCTURE Adequate Liquidity: As of March 31, 2023, Secure had approximately CAD363 million of liquidity. Secure had CAD23 million of cash on the balance sheet, CAD340 million available on its revolving credit facilities (net of CAD98 million in outstanding LOCs). Secure has a maximum limit of CAD800 million on its revolving credit facility and CAD50 million as an unsecured LOC facility guaranteed by Export Development Canada. The company's revolving credit facility matures in July 2025. As defined in the credit facility, the financial covenants permit a maximum Total Debt to EBITDA of 4.5x, Senior Debt to EBITDA of 2.75x, and minimum Interest Coverage of 2.5x. As of March 31, 2023, Secure was in compliance with all the financial covenants and had ratios of 1.9x, 0.9x and 6.0x for Total Debt to EBITDA, Senior Debt to EBITDA and Interest Coverage respectively. ISSUER PROFILE Secure Energy Services Inc. is an environmental and energy infrastructure business headquartered in Calgary, Alberta. Its infrastructure network located throughout western Canada and North Dakota includes waste processing and transfer facilities, industrial landfills, metal recycling facilities, crude oil and water gathering pipelines, crude oil terminals and storage facilities. It provides critical services to meet customer processing, recovery, recycling and disposal requirements. 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 ----------- ------ -------- ----- Secure Energy Services Inc. LT IDR BB- Upgrade B+ senior unsecured LT BB- Upgrade RR4 B+ Senior Secured 2nd Lien LT BB- Downgrade RR4 BB SHERMAN/GRAYSON: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Sherman/Grayson Hospital, LLC dba Wilson N. Jones Regional Medical Center 500 N. Highland Avenue Sherman TX 75092 Business Description: The Debtor is the operator of Wilson N. Jones Regional Medical Center, a 207-bed acute care hospital located in Sherman, Texas. Chapter 11 Petition Date: June 23, 2023 Court: United States Bankruptcy Court District of Delaware Case No.: 23-10810 Judge: Hon. J. Kate Stickles Debtor's Counsel: Scott J. Leonhardt, Esq. THE ROSNER LAW GROUP LLC 824 North Market Street, Suite 810 Wilmington DE 19801 Tel: (302) 777-1111 Email: Leonhardt@teamrosner.com Debtor's Claims/ Noticing Agent: DONLIN, RECANO & CO., INC. Estimated Assets: $1 million to $10 million Estimated Liabilities: $50 million to $100 million The petition was signed by Laxman Reddy, chief executive officer, Alecto Healthcare Services Sherman LLC, a Delaware limited liability company, Debtor's sole member/manager. 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/UKVFBAA/ShermanGrayson_Hospital_LLC__debke-23-10810__0001.0.pdf?mcid=tGE4TAMA SILICON VALLEY: SEC Officials, DOJ Probe Goldman's Role in Bank --------------------------------------------------------------- Tom Schoenberg of Bloomberg News reports that Justice Department prosecutors are among the US officials who have queried Goldman Sachs Group Inc. over its role in Silicon Valley Bank's attempt to raise funds as the California-based lender careened into failure, according to a person familiar with the matter. The scrutiny by the agency's fraud section and the US Attorney's Office for the Northern District of California is part of a broader review of the final days of SVB, said the person, who asked not to be named discussing the confidential investigation. The Securities and Exchange Commission is also reviewing the matter, the person said. About Silicon Valley Bank Silicon Valley Bank was the nation's 16th largest bank and the biggest to fail since the 2008 financial meltdown. During the week of March 6, 2023, Silicon Valley Bank, Santa Clara, CA, experienced a severe "run-on-the-bank." On the morning of March 10, 2023, the California Department of Financial Protection and Innovation seized SVB and placed it under the receivership of the Federal Deposit Insurance Corporation (FDIC). The FDIC on March 13, 2023, disclosed that it transferred all deposits -- both insured and uninsured -- and substantially all assets of the former Silicon Valley Bank of Santa Clara, California, to a newly created, full-service FDIC-operated "bridge bank" in an action designed to protect all depositors of Silicon Valley Bank. SVB Financial Group is a financial services company focusing on the innovation economy, offering financial products and services to clients across the United States and in key international markets. Prior to March 10, 2023, SVB Financial Group owned and operated Silicon Valley Bank, a state-chartered bank. On March 17, 2023, SVB Financial Group sought Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 23-10367). The Hon. Martin Glenn is the bankruptcy judge. The Debtor had assets of $19,679,000,000 and liabilities of $3,675,000,000 as of Dec. 31, 2022. Centerview Partners LLC is proposed financial advisor, Sullivan & Cromwell LLP proposed legal counsel and Alvarez & Marsal proposed restructuring advisor to SVB Financial Group as debtor-in-possession. Kroll is the claims agent. SKILLSOFT FINANCE: MetWest FRI Marks $673,102 Loan at 15% Off ------------------------------------------------------------- Metropolitan West Fund's Floating Rate Income Fund has marked its $673,102 loan extended to Skillsoft Finance II, Inc to market at $571,632 or 85% of the outstanding amount, as of March 31, 2023, according to a disclosure contained in MetWest Fund's Form N-CSR for the Fiscal year ended March 31, 2023, filed with the Securities and Exchange Commission. Floating Rate Income Fund is a participant in a First Lien Term Loan B (SOFR plus 5.36%) to Skillsoft Finance II, Inc. The loan accrues interest at a rate of 10.10% per annum. The loan matures on July 14, 2028. The Metropolitan West Funds is an open-end management investment company organized as a Delaware statutory trust on December 9, 1996 and registered under the Investment Company Act of 1940, as amended. Metropolitan West Asset Management, LLC, a federally registered investment adviser, provides the Funds with investment management services. The Trust currently consists of 14 separate portfolios. SkillSoft Corporation provides cloud-based learning solutions, offering enterprise courseware. SKYREACH CONSTRUCTION: Jodi Dubose Named Subchapter V Trustee ------------------------------------------------------------- The U.S. Trustee for Region 21 appointed Jodi Daniel Dubose, Esq., at Stichter, Riedel, Blain & Postler P.A., as Subchapter V trustee for Skyreach Construction, LLC. Ms. Dubose will be paid an hourly fee of $350 for her services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Ms. Dubose declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Jodi Daniel Dubose, Esq. Stichter, Riedel, Blain & Postler P.A. 41 N. Jefferson Street, Suite 111 Pensacola, FL 32502 Phone: (850) 637-1836 Email: jdubose@srbp.com About Skyreach Construction Skyreach Construction, LLC filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. N.D. Fla. Case No. 23-30395) on June 8, 2023, with $100,001 to $500,000 in assets and $500,001 to $1 million in liabilities. The Debtor is represented by Byron W. Wright III, Esq., at Bruner Wright, P.A. SNC VENTURES: Amends Subchapter V Plan After Denial --------------------------------------------------- SNC Ventures, LLC, submitted a Consensual Second Amended Subchapter V Plan of Reorganization dated June 20, 2023. On June 8, 2023, the Court held a hearing on confirmation of the Debtor's First Amended Plan. On June 9, 2023, the Court issued its Order Denying Confirmation resulting in the filing of this Second Amended Plan. Like in the prior iteration of the Plan, Class 3 General Unsecured Claims will receive pro rata payment from Debtor's projected disposable cash for 36 months from the Effective Date. No creditors elected to be treated as Class 4 Convenience Class 4 Creditors and thus will be treated as Class 3 General Unsecured Creditors. Class 6 consists of Disputed Claims. All Disputed Claims have been resolved by a withdrawal of claim or by court-approved Stipulation and Agreed Order. The Debtor's financial projections show that the Debtor will have an aggregate annual average cash flow, after paying operating expenses and post- confirmation taxes, of -$118,501. The final Plan payment is expected to be paid in June 2026. The projected total of all payments to eneral unsecured creditors nder the Plan is $355,203. The payments contemplated in this Plan shall be funded from cash on hand and the postpetition operations and cash flow of the Debtor through and after the Effective Date. The Debtor shall distribute payments under the Plan following confirmation of the Plan. The Post-Confirmation Management of the Debtor's affairs shall remain with the Debtor's Principals. Steven Habel and Crystal Habel shall continue to operate the Debtor including collection of all outstanding payments and accounts receivable owed to the Debtor to make distributions as provided under this Plan. A full-text copy of the Second Amended Plan dated June 20, 2023 is available at https://urlcurt.com/u?l=VmdeSH from PacerMonitor.com at no charge. Counsel for the Debtor: Wayne Kitchens, Esq. Alexander Perez, Esq. Hughes Watters Askanase, LLP 1201 Louisiana St, 28th Floor Houston, TX 77002 Tel: (713) 759- 0818 Fax: (713) 759-6834 E-mail: wkitchens@hwa.com aperez@hwa.com About SNC Ventures SNC Ventures LLC is a Texas limited liability company that operates an e-commerce costume jewelry retail business. Steven Habel is the managing member and operates SNC from its headquarters in Tomball, Texas. SNC Ventures LLC filed a petition for relief under Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Case No. 22-33813) on December 22, 2022. In the petition filed by Steven T. Habel, as managing member, the Debtor reported assets and liabilities between $1 million and $10 million. Brendon D Singh has been appointed as Subchapter V trustee. The Debtor is represented by Wayne Kitchens, Esq., at Hughes Watters Askanase LLP. SOURCEWATER INC: Seeks to Hire Medler Ferro as IP Counsel --------------------------------------------------------- Sourcewater, Inc. seeks approval from the U.S. Bankruptcy Court for the Southern District of Texas to employ Medler Ferro Woodhouse & Mills, PLLC as non-litigation intellectual property counsel. The firm's services include: a. patent preparation, including drafting and filing new applications; b. patent prosecution; c. portfolio counsel services, including strategy and managing the current portfolio owned by the Debtor; and d. assisting the Debtor in any matters relating to intellectual property issues subject to or from the case. The firm will be paid at these hourly rates: Teresa U. Medler, Esq., Principal $475 Richard Hanna, Esq., Partner $450 Melissa Satorre, Paralegal $175 Medler Ferro is a "disinterested person" within the meaning of Sec. 101(14), as disclosed in the court filings. The firm can be reached through: Teresa U. Medler, Esq. Medler Ferro Woodhouse & Mills, PLLC 8201 Greensboro Drive, Suite 1060 McLean, VA 2210 D: 703-712-8518 F: 703-712-8525 E: tmedler@medlerferro.com About Sourcewater Inc. Sourcewater, Inc. is a Houston-based company that gathers, analyzes and visualizes surface and subsurface energy and water activity. It conducts business under the name Sourcenergy. Sourcewater sought protection under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Texas Case No.23-30960) on March 17, 2023, with up to $1 million in assets and up to $10 million in liabilities. Thomas A. Howley has been appointed as Subchapter V trustee. Judge Jeffrey P. Norman oversees the case. Jarrod B. Martin, Esq., at Chamberlain, Hrdlicka, White, Williams, & Aughtry, P.C., is the Debtor's legal counsel. SPIN HOLDCO: MetWest FRI Marks $1.9M Loan at 16% Off ---------------------------------------------------- Metropolitan West Fund's Flexible Income Fund has marked its $1,960,000 loan extended to Spin Holdco, Inc to market at $1,653,397 or 84% of the outstanding amount, as of March 31, 2023, according to a disclosure contained in MetWest Fund's Form N-CSR for the Fiscal year ended March 31, 2023, filed with the Securities and Exchange Commission. Flexible Income Fund is a participant in a Term Loan B, 1st Lien Loan B (LIBOR plus 4%) to Spin Holdco, Inc. The loan accrues interest at a rate of 8.99% per annum. The loan matures on March 3, 2028. The Metropolitan West Funds is an open-end management investment company organized as a Delaware statutory trust on December 9, 1996 and registered under the Investment Company Act of 1940, as amended. Metropolitan West Asset Management, LLC, a federally registered investment adviser, provides the Funds with investment management services. The Trust currently consists of 14 separate portfolios. Spin Holdco Inc. provides laundry solutions. The Company offers residential and commercial laundry solutions, as well as tire inflation and vacuum vending services at convenience stores and gas stations. Spin Holdco serves clients in North America and Europe. STEWART BOUNCE: Seeks Cash Collateral Access -------------------------------------------- Stewart Bounce, Inc. asks the U.S. Bankruptcy Court for the Western District of Pennsylvania for authority to use cash collateral and provide adequate protection. The Debtor requires the use of cash collateral to continue its operations. Seven UCC Financing Statements have been filed with the State of Pennsylvania with respect to the Debtor's assets that have not been terminated: a) File Number 2019100101214 filed on October 1, 2019 by Stearns Bank National Association which appears to attempt to put a blanket lien on all attachable assets of the Debtor. b) File Number 2021100401116 filed on October 4, 2021 by Corporation Service Company, as Representative. The Debtor's counsel believes that Corporation Service Company, as Representative is an agent for one of the Debtor's creditors but no actual creditor is listed on the UCC Financing Statement and it is impossible to determine which creditor this UCC Financing Statement refers to. c) File Number 2022012400949 filed on January 24, 2022 by Fresh Funding Solutions Inc. which appears to attempt to put a blanket lien on all attachable assets of the Debtor. d) File Number 2022022301605 filed on February 23, 2022 by Corporation Service Company, as Representative. The Debtor's counsel believes that Corporation Service Company, as Representative is an agent for one of the Debtor's creditors but no actual creditor is listed on the UCC Financing Statement and it is impossible to determine which creditor this UCC Financing Statement refers to. e) File Number 20230206024347 filed on February 6, 2023 by Corporation Service Company, as Representative. The Debtor's counsel believes that Corporation Service Company, as Representative is an agent for one of the Debtor's creditors but no actual creditor is listed on the UCC Financing Statement and it is impossible to determine which creditor this UCC Financing Statement refers to. f) File Number 20230210028051 filed on February 10, 2023 by Funding Metrics, LLC which appears to attempt to put a blanket lien on all attachable assets of the Debtor. g) File Number 20230414074294 filed on April 14, 2023 by The LCF Group, Inc. which appears to attempt to put a blanket lien on all attachable assets of the Debtor. The Debtor believes that, if properly perfected, Stearns Bank National Association would have a first position lien on the Debtor's cash collateral. Stearns Bank is owed approximately $264,000 and would entirely encumber value of any cash collateral of the Debtor if they maintain a valid and perfected lien. The Debtor asserts no creditors or parties in interest will be harmed or prejudiced by allowing the Debtor to continue using cash collateral. The Debtor also requests the Court to conduct an expedited hearing on the matter. A copy of the motion is available at https://urlcurt.com/u?l=uMNSRG from PacerMonitor.com. About Stewart Bounce, Inc. Stewart Bounce, Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Pa. Case No. 23-21313) on June 18, 2023. In the petition signed by Joel T. Stewart, president, the Debtor disclosed up to $100,000 in assets and up to $1 million in liabilities. Christopher M. Frye, Esq., at Steidl & Steinberg, P.C., represents the Debtor as legal counsel. SUPPLY CHAIN: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Supply Chain Warehouses Savannah, LLC 605 Expansion Blvd. Port Wentworth, GA 31407 Business Description: The Debtor operates warehousing and storage facility. Chapter 11 Petition Date: June 23, 2023 Court: United States Bankruptcy Court Southern District of Georgia Case No.: 23-40540 Judge: Hon. Edward J. Coleman III Debtor's Counsel: Jon Levis, Esq. LEVIS LAW FIRM, LLC Post Office Box 129 Swainsboro GA 30401 Tel: 478-237-7029 Email: levis@merrillstone.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Phillip Lowell Stover as managing member. A full-text copy of the petition containing, among other items, a list of the Debtor's 20 largest unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/K7KZGUI/Supply_Chain_Warehouses_Savannah__gasbke-23-40540__0001.0.pdf?mcid=tGE4TAMA SWS SERVICES: PCO Submits First Report -------------------------------------- Teresa Teeple, the patient care ombudsman, filed with the U.S. Bankruptcy Court for the Middle District of Tennessee a first report regarding the quality of patient care provided by SWS Services, Inc. The PCO directed District Ombudsman Melinda Lunday as representative to begin making frequent visits. The facility was clean and well-kept on each visit and, in fact, each time that the District Ombudsman would visit the facility, she would see new repairs. The PCO reported that one ongoing concern of the District Ombudsman is that several residents are usually in recliner chairs in the living room. No residents or family members have complained about this to the District Ombudsman and residents seem to see it as part of their daily routine. Another concern that is being addressed is that during her first visit the District Ombudsman noted a posting in the dining room wall of residents and their room numbers, and whether the residents need a full brief or an insert for a brief for incontinence care. Ms. Lunday suggested that the posting be placed somewhere more private like the supply closet. The District Ombudsman will continue to work through this concern with staff. A copy of the ombudsman report is available for free at https://urlcurt.com/u?l=yXQS43 from PacerMonitor.com. About SWS Services, Inc. SWS Services, Inc., is a Tennessee corporation which operates Oak Hill Senior Living in Portland, TN. SWS Services sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Tenn. Case No. 23-00835) on March 8, 2023. In the petition signed by Shanna Wheeler, owner and president, the Debtor disclosed up to $500,000 in assets and up to $1 million in liabilities. Judge Marian F. Harrison oversees the case. Steven L. Lefkovitz, Esq., at Lefkovitz and Lefkovitz, represents the Debtor. TAHOE LAKE: Court OKs Cash Collateral Access Thru July 18 --------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of California, Sacramento Division, authorized Tahoe Lake Love to use cash collateral on an interim basis in accordance with the budget, through July 18, 2023. The Debtor is permitted to use cash collateral of Employment Development Department, Vox Funding, and Sofia Grey LLC dba E Financial Tree on an interim bases, subject to adequate protection payments proposed by the Debtor in its Cash Collateral Motion, as supplemented by the revised cash collateral budget. The Debtor will make monthly adequate protection payments in the amount of $ 1,852 to Vox Funding, with the first payment commencing on July 1, 2023, and continuing monthly thereafter with the payments due on the 1st day of each month. As additional adequate protection for the Debtor's use of cash collateral, the Secured Creditors will have replacement liens in the Debtor's pre-petition and post-petition assets of the same type and validity as are subject to valid pre-petition liens and security interest, with the same priority as the pre-petition liens and security interests, and only to the extent of diminution in value of the collateral, as a result of the Debtor's use of cash collateral on a post-petition bases. The Secured Creditors' liens upon, and security interests in, the replacement collateral will be perfected without any other act or filing upon entry of the Order. A final hearing on the matter is set for July 18 at 11 a.m. A copy of the Court's order and the Debtor's budget is available at https://urlcurt.com/u?l=MoSgPD from PacerMonitor.com. The Debtor projects total expenses, on a monthly basis, as follows: $64,152 for June 2023; $66,564 for July 2023; $66,564 for August 2023; $51,844 for September 2023; $51,844 for October 2023; and $37,314 for November 2023. About Tahoe Lake Love Tahoe Lake Love sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Cal. Case No. 23-21903) on June 9, 2023. In the petition filed by Alison Lee, chief executive officer, the Debtor disclosed up to $50,000 in assets and up to $1 million in liabilities. Michael Jay Berger, Esq., at the Law Offices of Michael Jay Berger, represents the Debtor as legal counsel. THREE ARROWS: Reps Want Co-Founder Held in Contempt --------------------------------------------------- Aislinn Keely of Law360 reports that the co-founder of bankrupt hedge fund Three Arrows Capital should be found in contempt for failing to respond to a court order compelling him to reply to liquidators' information requests while he's been purportedly "sightseeing" around the world, a Manhattan bankruptcy judge has been told. Russell Crumpler and Christopher Farmer, in their joint capacities as foreign representatives of Three Arrows Capital, Ltd., filed a motion for an order holding Kyle Livingstone Davies, one of the Debtor's founders, in contempt of the Bankruptcy Court's March 30, 2023 Order Granting Motion to Compel Compliance with Subpoena and granting sanctions against Davies. "Since the beginning of this Chapter 15 case, the founders of Three Arrows, Kyle Livingstone Davies and Su Zhu (together, the "Founders"), have repeatedly defied their obligations to the Court and failed to cooperate with the Foreign Representatives' efforts to marshal the assets of the Debtor. In doing so, the Founders have delayed and complicated the Foreign epresentatives' efforts to recover assets for creditors," the Foreign Representatives said in court filings. "Given their involvement in every facet of the Debtor's business, the Founders clearly could provide meaningful assistance to the Foreign Representatives in fulfilling their duties. Instead of complying with subpoenas and information requests, however, the Founders have ignored their obligations, hidden their whereabouts, and instead spent their time creating, amongst other things, a new venture to trade claims in cryptocurrency bankruptcy cases," the Foreign Representatives added. "Most recently, the Founders gave an interview to the New York Times in which they bragged about their wealth and demonstrated a stunning lack of "remorse" for their role in the Debtor's collapse. The Founders' lack of contrition and accountability is clear, and their noncompliance has persisted throughout these proceedings. They have not only thumbed their nose at the Foreign Representatives, this Court, and their creditors, but they now seek to profit from this very bankruptcy (among others)." About Three Arrows Capital Three Arrows Capital Ltd. was an investment firm engaged in short-term opportunities trading, and is heavily invested in cryptocurrency, funded through borrowings. As of April 2022, the Debtor was reported to have over $3 billion of assets under its management. Three Arrows Capital Ltd. was incorporated as a business company under the laws of the British Virgin Islands. Its sole shareholder owning all of its "management shares" is Three Arrows Capital Pte. Ltd., which previously operated as a regulated fund manager in Singapore until 2021, when it shifted its domicile to the BVI, as part of a global corporate plan to relocate operations to Dubai. The Debtor borrowed digital and fiat currency from multiple lenders to fund its cryptocurrency investments. After cryptocurrency lost 99% of its value, and then prices of other cryptocurrencies had rapid declines, the Debtor reportedly defaulted on its obligations. On June 24, 2022, one of the Debtor's many creditors -- DRB Panama Inc. -- filed an application to appoint joint provisional liquidators -- and thereafter, full Liquidators -- in the Eastern Caribbean Supreme Court in the High Court of Justice (Commercial Division) located in BVI. The application was assigned claim number VIHCOM2022/0117. Subsequently, on June 27, 2022, the Debtor filed its own application for the appointment of joint liquidators before the BVI Commercial Court. On June 29, 2022, the Honorable Mr. Justice Jack of the BVI Commercial Court appointed Russell Crumpler and Christopher Farmer of Teneo (BVI) Limited as joint liquidators of Three Arrows Capital Ltd. TRANSCENDIA INC: MetWest FRI Marks $2.3M Loan at 24% Off -------------------------------------------------------- Metropolitan West Fund's Floating Rate Income Fund has marked its $2,397,578 loan extended to Transcendia Holdings, Inc to market at $1,822,160 or 76% of the outstanding amount, as of March 31, 2023, according to a disclosure contained in MetWest Fund's Form N-CSR for the Fiscal year ended March 31, 2023, filed with the Securities and Exchange Commission. Floating Rate Income Fund is a participant in a First Lien Term Loan B (LIBOR plus 3.50%) to Transcendia Holdings, Inc. The loan accrues interest at a rate of 8.34% per annum. The loan matures on May 30, 2024. The Metropolitan West Funds is an open-end management investment company organized as a Delaware statutory trust on December 9, 1996 and registered under the Investment Company Act of 1940, as amended. Metropolitan West Asset Management, LLC, a federally registered investment adviser, provides the Funds with investment management services. The Trust currently consists of 14 separate portfolios. Transcendia Holdings, Inc. is a provider of engineered specialty films materials across a range of end-markets. The company manufactures specialty films by extrusion of resin or converting film for specific customer applications. TRANSIT PHYSICAL: Unsecureds Will Get 50% of Claims in 60 Months ---------------------------------------------------------------- Transit Physical Therapy PC filed with the U.S. Bankruptcy Court for the Central District of California an Original Plan of Reorganization dated June 20, 2023. The Debtor operates multiple physical therapy clinics in Southern California. Debtor contracts with different healthcare carriers such as Medicare, MediCal, Physicians Health Network, and Alphacare and obtains its clientele through referrals from these carriers. Since inception in 2018, Debtor's patient volume has increased rapidly and consistently. Over the past year, this expansion, and the expenses associated with it, have caused the Debtor to seek out additional financing. Unfortunately, Debtor entered into financing agreements that imposed extraordinarily harsh terms, charging as much as 400% annual interest and as much as $5000 pr day in service payments. Without bankruptcy protection, the Debtor was very few days away from insolvency. Class 3 consists of General Unsecured Claims. The Debtor proposes a 5-year repayment period, paying $8,547.60 per month for 60 months on the general unsecured claims, for a total of $512,856 during the Plan. This Plan will pay 50% of the allowed general unsecured claims at 0.00% interest. The allowed unsecured claims total $1,025,712. Mitree Piromgraipakd owns 100% of the capital stock of the Debtor. Mr. Piromgraipakd will retain his equity interest in the Debtor. The Debtor's financial projections show that the Debtor will have an aggregate annual average cash flow, after paying operating expenses and post-confirmation taxes, of at least $255,247. The final Plan payment is expected to be paid 60 months after the effective date. The Plan will be funded through projected disposable income of approximately $21,000 per month following confirmation. A full-text copy of the Plan of Reorganization dated June 20, 2023 is available at https://urlcurt.com/u?l=JXK3xe from PacerMonitor.com at no charge. Debtor's Counsel: Todd Turoci, Esq. THE TUROCI FIRM 3845 Tenth Street Riverside, CA 92501 Tel: (888) 332-8362 Fax: (866) 762-0618 E-mail: mail@theturocifirm.com About Transit Physical Therapy PC Transit Physical Therapy PC offers personal rehabilitation services including physical therapy, occupational therapy, and speech and language pathology. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 23-11057) on March 20, 2023. In the petition signed by Mitree Michael Piromgraipakd, its president, the Debtor disclosed $2,700,328 in assets and $4,147,237 in liabilities. Judge Scott H. Yun oversees the case. Todd Turoci, Esq., at the Turoci Firm, represents the Debtor as legal counsel. TYSON FAMILY: Case Summary & 10 Unsecured Creditors --------------------------------------------------- Debtor: Tyson Family Farms, Inc. 906 Evans Road Nashville, NC 27856 Chapter 11 Petition Date: June 23, 2023 Court: United States Bankruptcy Court Eastern District of North Carolina Case No.: 23-01738 Judge: Hon. Pamela W Mcafee Debtor's Counsel: David J. Haidt, Esq. AYERS & HAIDT, PA PO Box 1544 307 Metcalf Street New Bern, NC 28563 Tel: 252-638-2955 Email: david@ayershaidt.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Jeffery V. Tyson as president. A full-text copy of the petition containing, among other items, a list of the Debtor's 10 unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/PUY6SYQ/Tyson_Family_Farms_Inc__ncebke-23-01738__0001.0.pdf?mcid=tGE4TAMA UNION CIGAR: Seeks to Hire Wiedeman & Douty PC as Accountant ------------------------------------------------------------ Union Cigar, LLC seeks approval from the U.S. Bankruptcy Court for the Middle District of Pennsylvania to employ Wiedeman & Douty, PC as accountant. The firm will render these services: (a) reconciliation of accounts; (b) record depreciation, payroll review and reconciliation and income and expense review; (c) preparation of the Chapter 11 Monthly Operating Reports; (d) assistance with projections and the Chapter 11 Plan; and (e) preparation of federal and state partnership income tax returns. Wiedeman & Douty will charge the Debtor as follows: (a) A flat monthly fee of $300 for bookkeeping services; (b) $300 to $400 per month for bankruptcy services; and (c) $800 per year for tax services. The firm's standard hourly billing rates are below: Principal $235 Senior Manager $195 Accounting Staff $150 Accounting Associate $90 Tracey Douty, CPA, a member of Wiedeman & Douty, disclosed in a court filing that the firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Tracey Douty, CPA Wiedeman & Douty, PC 4320 Calder Avenue 1993 Hummel Avenue, Suite 201 Telephone: (717) 774-2828 Email: tracey@WiedemanDoutyCPA.com About Union Cigar Union Cigar, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Pa. Case No. 23-00873) on April 20, 2023. In the petition signed by John-Waite, Weiser, manager, the Debtor disclosed up to $1 million in both assets and liabilities. Judge Henry W. Van Eck oversees the case. The Debtor tapped Robert E. Chernicoff, Esq., at Cunningham, Chernicoff & Warshawsky PC as legal counsel and Tracey Douty, CPA, at Wiedeman & Douty, PC as accountant. VENATOR MATERIALS: Huntsman Corp. Says Plan Not Feasible -------------------------------------------------------- Huntsman Corporation objects to the Joint Prepackaged Plan of Reorganization of Venator Materials PLC and its Debtor Affiliates. In April 2017, Huntsman formed Venator, a wholly-owned subsidiary, for the specific purpose of separating its pigments and additives business from the rest of its portfolio of chemical businesses. One purpose of this internal reorganization was for Venator to operate as a separate publicly-traded entity. On August 7, 2017, Huntsman and Venator entered into that certain Tax Matters Agreement (the "Tax Agreement"). Among other things, generally speaking, the Tax Agreement provides for the payment of certain tax liabilities, entitlement to refunds, allocation of responsibility for certain taxes, and cooperation in filing certain tax returns. Notably, the Tax Agreement provides that Venator must pay Huntsman for the benefit it receives in using Huntsman's net operating losses ("NOLs") when Venator files its tax returns. As of this date, Venator owes Huntsman in excess of $13,000,000 for using Huntsman's NOLs in connection with its 2022 tax returns, and it is projected that Venator will owe in excess of $20,000,000 once all of the NOLs are exhausted. Then, on August 8, 2017, Huntsman closed the Initial Public Offering (IPO) of Venator and subsequently completed secondary offerings further reducing Huntsman's interest in Venator. Huntsman claims that the Plan provides that all General Unsecured Claims are unimpaired and will be paid in full. It does not reference any dispute with Huntsman of any type or mention the Tax Agreement in any way. Huntsman's claim under the Tax Agreement, in excess of $20,000,000, is a General Unsecured Claim under the Plan and there is no statement to the contrary in the Plan. Only recently, on June 19, 2023, one week before the confirmation hearing on the Plan, Huntsman was asked to discuss the Tax Agreement through its attorneys with the Debtors. As a result of this conversation, Huntsman was informed for the first time that the Debtors were investigating potential claims against Huntsman. From this conversation, Huntsman was also led to believe that there were not sufficient reserves to pay the full Huntsman claim under the Tax Agreement. Huntsman asserts that the Plan and Disclosure Statement do not disclose or refer to any claims against Huntsman. Nor does the Plan provide for any class of unsecured claims other than subordinated claims that arise under Section 510(b) of the Bankruptcy Code (i.e., those arising from rescission of a purchase or sale of a security of the Debtor or an affiliate of the Debtor). Huntsman has a General Unsecured Claim in excess of $20,000,000. Under the Plan, Huntsman is unimpaired and thus not entitled to vote on the Plan. Rather, the Plan provides for full payment of Huntsman's General Unsecured Claim. But this unambiguity in the language of the Plan relating to the Tax Agreement and Huntsman's claim is not consistent with the message conveyed informally by the Debtors to Huntsman. Thus, out of an abundance of caution, Huntsman objects to the Plan to the extent that the Debtors treat Huntsman differently from the General Unsecured Claims class. Huntsman also objects to the Plan to the extent sufficient reserves have not been set aside to meet the feasibility test required under Section 1129(a)(11) of the Bankruptcy Code. To theextent there are insufficient reserves to pay Huntsman's claims under the Tax Agreement, the Debtors cannot meet their financial obligations under the Plan (i.e., render Huntsman unimpaired). If so, the Plan fails to comply with Section 1129(a)(11) of the Bankruptcy Code. A full-text copy of Huntsman's objection dated June 20, 2023 is available at https://urlcurt.com/u?l=lHu9U0 from PacerMonitor.com at no charge. Counsel for Huntsman Corporation: GREENBERG TRAURIG, LLP Shari L. Heyen Shari.Heyen@gtlaw.com Texas Bar No. 09564750 1000 Louisiana St., Suite 6700 Houston, Texas 77002 Telephone: (713) 374-3535 Facsimile: (713) 374-3505 – and – Annette W. Jarvis JarvisA@gtlaw.com 222 South Main Street, Suite 1700 Salt Lake City, Utah 84101 Telephone: (801) 478-6900 About Venator Venator (NYSE: VNTR) is a global manufacturer and marketer of chemical products that comprise a broad range of pigments and additives that bring color and vibrancy to buildings, protect and extend product life, and reduce energy consumption. It markets its products globally to a diversified group of industrial customers through two segments: Titanium Dioxide, which consists of its TiO2 business, and Performance Additives, which consists of its functional additives, color pigments and timber treatment businesses. Based in Wynyard, U.K., Venator employs approximately 2,800 associates and sells its products in more than 106 countries. After reaching terms of a Prepackaged Plan, Venator Materials PLC, and 23 affiliated companies filed petitions seeking relief under chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. Case No. 23-90301) on May 14, 2023. The Debtors' cases have been assigned to Judge David R Jones. In connection with the prepackaged Chapter 11 and recapitalization process, Venator is assisted by Moelis & Company and Kirkland & Ellis as financial and legal advisors, respectively, in addition to Alvarez & Marsal as operational advisor. Epiq Corporate Restructuring, LLC, is the claims, noticing, and solicitation agent and maintains the page https://dm.epiq11.com/venator. VERICAST CORP: Declines RR Donnelly's $3 Billion Offer ------------------------------------------------------ Reshmi Basu of Bloomberg News reports that Ronald Perelman's Vericast Corp. has rejected an offer from Chatham Asset Management LLC's RR Donnelley & Sons Co. to acquire the closely held marketing company for around $3 billion, according to people familiar with the matter. RR Donnelley made a non-binding offer to Vericast last month in which proceeds from the deal would have been used to repay all of Vericast's debt, Bloomberg reported. The proposed acquisition would have left Vericast's private equity owner MacAndrews & Forbes Inc., which is controlled by Perelman, with at least $175 million in value roughly split between cash proceeds and forgiveness. About Vericast Corporation Headquartered in San Antonio, TX, Vericast Corp. is a provider of check and check related products, direct marketing services and customized business and home office products. Its Valassis division offers clients mass delivered and targeted programs to reach consumers primarily consisting of shared mail, newspaper and digital delivery in addition to coupon clearing and other marketing and analytical services. The company's 2020 annual revenue was $2.6 billion. Vericast is owned by MacAndrews & Forbes Holdings, Inc., a wholly owned entity controlled by Ronald O. Perelman. VIASAT INC: Fitch Corrects June 14 Ratings Release -------------------------------------------------- Fitch Ratings issued a correction of a release on Viasat Inc. published June 14, 2023. It includes that Connect FinCo SARL and Connect U.S. FinCo LLC are co-issuers of the senior secured debt listed in the ratings table which was omitted from the original release. The amended press release is as follows: Fitch Ratings has upgraded the Long-Term Issuer Default Ratings (IDRs) of Viasat, Inc. and Viasat Technologies Limited to 'BB-' from 'B+' following the company's successful launch of Viasat-3 Americas satellite in April and closing of Inmarsat acquisition on May 30, 2023. The Rating Outlook is Stable. Fitch has also affirmed Viasat's existing senior secured debt at 'BB+'/'RR1'. The unsecured debt has been upgraded to 'BB-'/'RR4' from 'B+'/'RR4'. Fitch has also assigned an IDR of 'BB-' to Connect BidCo Ltd. (Inmarsat). In addition, Fitch has assigned an IDR of 'BB-' to Connect FinCo SARL and Connect U.S. FinCo LLC (co-issuer with Connect FinCo SARL); and a rating of 'BB+'/'RR1' to the co-issuers' senior secured debt. The acquisition, though increasing leverage temporarily, together with the recent and expected satellite launches, positions Viasat as a leading global satellite operator with robust growth opportunities in mobility and government end markets. Fitch expects leverage will trend down to near 4.5x by FY 2025 and the company to turn FCF positive in FY 2026. Fitch expects FCF deficits over the next 18-24 months, as the company funds its satellite build program. KEY RATING DRIVERS Inmarsat Merger: Viasat has completed a merger with Connect Topco Limited (Inmarsat) in a cash and stock transaction, following receipt of pending regulatory approvals from EC, the U.K. Competition & Markets Authority and U.S. FCC. The merger provides scale and growth opportunities in mobility and government end-markets as well as helping to diversify Viasat's revenue geographically, and increasing the proportion of recurring revenue in the combined revenue mix. Fitch believes Viasat's merger with Inmarsat is neutral to its credit profile. Fitch estimates the transaction will cause gross leverage to rise temporarily to over 5x, but increased scale, revenue growth opportunities with the capacity boost from satellite launches, and increased EBITDA margins due to inclusion of Inmarsat's higher margin business combined with synergies provide for opportunity to rapidly deleverage over the rating horizon. Solid EBITDA Growth: Viasat's revenues from continuing operations (on a standalone basis) grew 6% for fiscal 2023 (ending March 2023) due to the continuing recovery of the satellite services business, growth due to acquisitions, and higher commercial networks revenue. In fiscal 2023, satellite services revenues grew roughly 2%, compared with 37% growth in fiscal 2022. Growth has been slower as the company has been shifting capacity away from fixed broadband to the inflight connectivity (IFC) service in anticipation of capacity needs in early calendar 2023, and as it continues to add aircraft using its service. Fitch expects FY 2024 EBITDA to grow in high single digits. Inmarsat's YE 2022 revenue increased in the high single digits, driven by strong growth mobility markets (especially aviation), while its 1Q23 revenue registered mid-teen revenue growth with strong performance across segments. Inmarsat's EBITDA margins are significantly higher than standalone Viasat's as the company was less vertically integrated and did not have high development costs as Viasat has, and the absence of a lower-margin fixed broadband business. Leverage Expectations: Fitch estimates Viasat's EBITDA leverage will approximate 4.5x at FYE 2025 (net EBITDA leverage of 3.9x), with net EBITDA leverage being much lower, reflecting the proceeds from the sale of the tactical data link business (TDL or Link 16) received in early 2023. Fitch expects the company to carry high cash balances at least until 2025, when the company is expected to use a portion of cash to repay $700 million of unsecured notes on maturity. Proforma gross leverage (PF for Inmarsat acquisition and synergies) at YE 2023 was 5.1x. FCF Deficits from High Capex: Viasat is in the midst of a high capex period, as it is building three third-generation, high-throughput satellites at a total cost of $2 billion or more. The first, ViaSat-3 (Americas), was launched in April 2023, with commercial services expected to commence in mid-summer. This is expected to boost revenue as the satellite's utilized capacity grows. Capex is expected to remain high as ViaSat-3 (EMEA) is launched about six months later. ViaSat-3 (APAC) is expected to follow six to nine months after the EMEA satellite. The company has indicated as a frame of reference that on a stand-alone basis, positive FCF may follow about three quarters after the launch of the second ViaSat-3 satellite. Fitch expects the company to be FCF positive starting FY 2026. Execution Risk: Viasat is in the construction phase of a three-satellite constellation (two remaining) that will require the company to execute on the construction phase of the satellites, as well as on growth strategies once the satellites are in service to sustain EBITDA and cash flow growth. The company is expected to benefit from a strong revenue backlog, as well as the additional global markets opened up by the ViaSat-3 satellites. Once completed, the three satellites will provide approximately eight times the capacity of Viasat's existing fleet. Revenue Backlog: Viasat had a $1.7 billion backlog from continuing operations at March 31, 2022 (up 2% over the prior year). The company does not include amounts in backlog if the company does not have purchase orders. The backlog does not include anticipated purchase orders for commercial aircraft IFC systems or service revenues under agreements. As of March 31, 2023, Viasat provides in-flight internet services to 2,270 active commercial aircraft. In addition, the company anticipates another 1,310 aircraft would be put into service under existing agreements. A majority of the company's IFC contracts are for a period of five to 10 years, with varying levels of penalties associated with a termination for convenience. High Industry Competition: Fitch expects Viasat to face significant competition in satellite services from low-earth orbit (LEO) satellite networks in development. Viasat is expected to have a material advantage in cost/bit of capacity and leveraging its existing business platform, while being disadvantaged in terms of latency. Viasat benefits from vertical integration, which drives cost efficiencies. The company operates from a strong competitive position within certain business segments, primarily the satellite services segment where existing competitors may have weaker financial profiles or technology positions. Its share in the North American narrow-body market has grown significantly over the past several years. With Inmarsat, the company is expected to increase its share in mobility (IFC and maritime) significantly and reduce highly competitive fixed broadband revenue share in the total mix. In the government systems and commercial networks segments, Viasat has a relatively strong competitive position due to its product portfolio, but faces competition from higher-rated companies with stronger and more diversified businesses. Parent Subsidiary Linkage: Fitch believes there are high strategic and operational incentives given the substantial size and scale of Inmarsat such that avoidance costs will be substantial. The combined entity will be managed by the parent's leadership team with fully integrated management decisions. Both companies operate in Ka-band providing for integrated network opportunities. However, the absence of guarantees result in weak legal ties. Fitch equalizes ratings of Viasat and Inmarsat based on high strategic and operational incentives but weak legal linkages. DERIVATION SUMMARY In the Government Systems and Commercial Systems segments, Viasat competes against higher-rated companies that have access to much greater resources. In the Government Systems segment, there are numerous competitors, but major competitors in the manufacture of defense electronics, against which Viasat competes, include BAE Systems plc (BBB+/Stable) and Collins Aerospace. In the Commercial Networks segment, the company also competes against much larger companies, including Airbus SE (BBB+/Stable), General Dynamics, L3Harris Technologies (BBB+/Negative) and MAXAR Technologies. In the satellite services business, as a provider of communications infrastructure, comparable businesses to Viasat would include Intelsat Jackson Holdings S.A. (B+/Positive) and several companies unrated by Fitch, such as Telesat Canada and SBA Communications. Unlike some of these companies, Viasat provides services directly to consumers in its satellite services segment. SpaceX is also providing services directly to consumers. Given Viasat's vertically integrated strategy, which not only includes satellite services, but the development and manufacture of equipment, its EBITDA margins are lower than the pure service providers. Fitch believes the company's vertical integration provides a competitive advantage over pure services providers. In the in-flight connectivity segment, Viasat competes against Intelsat, which acquired GoGo Inc., Anuvu (formerly Global Eagle Entertainment), Panasonic Avionic Corporation, SpaceX and others. KEY ASSUMPTIONS - Revenue near $4.1 billion for FY 2024 following the May 31, 2023 Inmarsat acquisition close and the sale of the Link 16 business. Revenue growth of the combined business in the low double digits including two additional months of revenue from Inmarsat for FY 2024; - Adjusted EBITDA margins for the combined business are assumed near 33% for FY 2024 and expected to increase to 35%-36% over the forecast as acquisition synergies are realized; - Capex in FY 2024 is expected in the $1.2 billion-$1.3 billion range, and is expected to peak in FY 2025 to approximately $1.5 billion; - ViaSat EMEA to launch in late 2023 and ViaSat APAC in first-half 2024. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - EBITDA leverage sustained below 4.0x; - Sustained positive FCF generation such that (cash flow from operations-capex)/debt approaches 7.5%. Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - EBITDA leverage sustained above 5.0x; - Material delays or issues with respect to anticipated satellite launches, or delays in achieving revenue and EBITDA growth from future satellites due to business or competitive reasons. LIQUIDITY AND DEBT STRUCTURE Strong Liquidity: Viasat's liquidity is relatively strong given its cash balances and availability on its revolver, and is partly offset by FCF deficits. At March 31, 2023, cash and cash equivalents amounted to approximately $1.3 billion, including the receipt of $1.8 billion in net proceeds from the January 2023 sale of the Link 16 business. At March 31, 2023, Viasat had approximately $657 million of capacity on its $700 million revolver, after $42.6 million in letters of credit. The company used a portion of the proceeds from the sale of the Link 16 business to repay all then-outstanding borrowings on the revolver, thus increasing availability on the revolver to $657 million. Fitch expects Viasat to maintain cash and utilize liquidity to meet the 2025 maturity of $700 million unsecured notes. In addition, Fitch expects capex to peak in FY 2025 (CY 2024) as the company completes the construction of the remaining two Visat-2 satellites. Fitch expects Viasat to start generating positive FCF in FY 2026, as capex intensity subsides. Viasat completed the acquisition of Inmarsat using the $1.6 billion of financing commitments it had in place in connection with the pending acquisition. Viasat also assumed approximately $3.8 billion of Inmarsat's debt. Inmarsat's debt was entirely senior secured, comprising of a $700 million revolver due 2024 (undrawn as of March 31, 2023), a $1.7 billion term loan due 2026 and $2.1 billion of senior secured notes due 2026. Viasat does not guarantee Inmarsat's debt. Fitch expects Viasat will maintain, at least for the time being, two separate debt silos - Viasat credit group and Inmarsat credit group. There are no cross guarantees between the two debt silos. Viasat also had $59 million outstanding under an Ex-Im credit facility, a senior secured direct loan facility put in place primarily to fund the construction, launch and insurance of the ViaSat-2 satellite. The company is required by the terms of its senior secured credit facilities to have insurance on 75% of the net book value of certain covered satellites. The company has in-orbit insurance on the Viasat Americas, ViaSat-2, ViaSat-1, WildBlue-1 and the Anik F2 satellites. ISSUER PROFILE Viasat, Inc. is a vertically integrated technology provider, with an end-to-end platform of high-capacity satellites, ground infrastructure and user terminals. The company provides broadband solutions to enterprise, government and consumer users. On May 30, 2023, Viasat completed the acquisition of Inmarsat, becoming one of the largest satellite companies in the world. 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 ----------- ------ -------- Viasat, Inc. LT IDR BB- Upgrade senior secured LT BB+ Affirmed RR1 senior unsecured LT BB- Upgrade RR4 Connect Bidco Limited LT IDR BB- New Rating Connect Finco SARL LT IDR BB- New Rating senior secured LT BB+ New Rating RR1 Connect U.S. FinCo LLC LT IDR BB- New Rating senior secured LT BB+ New Rating RR1 Viasat Technologies Limited LT IDR BB- Upgrade senior secured LT BB+ Affirmed RR1 VIRGIN ORBIT: Amends Unsecureds & Prepetition Secured Notes Claims ------------------------------------------------------------------ Virgin Orbit Holdings, Inc., et al., submitted a Disclosure Statement for Third Amended Joint Chapter 11 Plan dated June 20, 2023. The Debtors are currently pursuing 363 Sale Transactions of their remaining assets that have not been sold pursuant to the Existing 363 Sale Orders. Any additional 363 Sale Transaction may be implemented pursuant to a Future 363 Sale Order. The proceeds thereof shall be distributed in accordance with the applicable provisions of this Plan or the applicable Sale Order, and the Debtors will be wound down. Class 3 consists of Prepetition Secured Notes Claims. In full and final satisfaction, compromise, settlement, and release of its Prepetition Secured Notes Claims (unless the Prepetition Secured Noteholder agrees to a less favorable treatment), on the Effective Date, the Prepetition Secured Noteholder shall receive (i) all Distributable Proceeds remaining after payment in full in Cash of the DIP Claims up to the Allowed amount of the Prepetition Secured Notes Claims and (ii) the VIL Litigation Trust Interests. If Confirmation occurs, to the extent the Distributable Proceeds and the VIL Litigation Trust Interest are insufficient to satisfy the Prepetition Secured Notes Claims in full, the Prepetition Secured Noteholder agrees not to receive any distribution on account of any resulting deficiency claims and shall not receive a Pro Rata Share of the GUC Recovery Pool on account of such deficiency claims; provided that notwithstanding anything to the contrary herein, the right to receive Distributable Proceeds and proceeds of the VIL Litigation Trust Interests on account of such Prepetition Secured Notes Claims and the right to credit bid such claims up to the unpaid amount of Prepetition Notes Claims in connection with any sale of the Debtors' assets (whether prior to or after the Effective Date), other than a Remaining Asset Sale, shall be preserved until all assets in the Debtors' Estates have been liquidated. Class 4 consists of General Unsecured Claims. On the Effective Date, except to the extent that a Holder of an Allowed General Unsecured Claim agrees to less favorable treatment and subject to such Holder's ability to elect Convenience Claim treatment on account of the Allowed General Unsecured Claim (in lieu of the GUC Recovery): * If Class 4 votes to accept the Plan, each Holder of an Allowed General Unsecured Claim shall receive, in full and final satisfaction of its Allowed General Unsecured Claim, its Pro Rata Share of the GUC Recovery: (including the GUC Litigation Trust Interests); or * If Class 4 votes to reject the Plan, each General Unsecured Claim Holder shall receive no distribution on account of its General Unsecured Claim and the Debtors may seek approval of the Dismissal Motion or conversion of these Chapter 11 Cases to Chapter 7 of the Bankruptcy Code. Class 4 is Impaired and Holders of Class 4 General Unsecured Claims are entitled to vote to accept or reject the Plan. Holders of Equity Interests shall receive no distribution on account of their Equity Interests. On the Effective Date, all Equity Interests will be canceled and extinguished and will be of no further force or effect. The Debtors shall fund distributions under the Plan with Cash on hand, monetization of the Debtors' remaining assets and, if necessary, contributions from VIL. To the extent of any shortfall, VIL shall provide the Debtors or the Plan Administrator, as applicable, Cash in an amount sufficient to fund (a) the Administrative Claims (other than DIP Facility Claims), Priority Tax Claims, Other Priority Claims, and Other Secured Claims in accordance with the Plan, in each case to the extent Allowed against the Debtors; (b) the Professional Fee Escrow Account; (c) the WindDown Amount; and (d) the GUC Cash-Out Pool (if Class 4 votes to accept the Plan). On the Effective Date, the Litigation Trust shall be established pursuant to the Litigation Trust Agreement for the purpose of, among other things, (a) selling, disposing, liquidating, receiving, holding, investing, supervising, protecting, and abandoning the Litigation Trust Assets; (b) administering, reconciling, settling, and resolving General Unsecured Claims and Convenience Claims; (c) taking all steps to execute all instruments and documents necessary to effectuate the distributions to be made to Holders of Allowed General Unsecured Claims and Allowed Convenience Claims; (d) making distributions to Holders of Allowed General Unsecured Claims, Allowed Convenience Claims and, to the extent of Remaining Net Estate Tax Refunds, the DIP Secured Parties and the Prepetition Secured Party; (d) retaining professionals or other advisors to assist in the performance of its duties; and (e) making further distributions from the Litigation Trust to Holders of Allowed General Unsecured Claims as provided for in the Plan and the Litigation Trust Agreement. The Litigation Trust Agreement may establish certain powers, duties, and authorities, but only to the extent that such powers, duties, and authorities do not affect the status of the Litigation Trust as a liquidating trust for United States federal income tax purposes. Upon execution of the Litigation Trust Agreement, the Litigation Trustee shall be authorized to take all steps necessary to complete the formation of the Litigation Trust. The Litigation Trust shall be administered by the Litigation Trustee in accordance with the Litigation Trust Agreement. The Litigation Trustee shall serve as representative of the Estates under section 1123(b) for the purpose of (i) enforcing the GUC Causes of Action and (ii) administering and distributing the Litigation Trust Assets. On the Effective Date, the Debtors shall transfer and assign to the Litigation Trust all of their right, title, and interest in and to all of the GUC Causes of Action, and in accordance with Bankruptcy Code Section 1141, all such assets shall automatically vest in the Litigation Trust free and clear of all Claims and Liens, subject only to the Allowed Claims of the Holders of GUC Litigation Trust Interests as set forth in the Plan and the expenses of the Litigation Trust as set forth herein and in the Litigation Trust Agreement. Thereupon, the Debtors shall no longer have any interest in or with respect to the Litigation Trust Assets. In pursuing any GUC Causes of Action, the Litigation Trustee shall be entitled to the tolling provisions provided under section 108 of the Bankruptcy Code, and shall succeed to the Debtors' rights with respect to the periods in which any of the GUC Causes of Action may be brought under section 546 of the Bankruptcy Code. On the Effective Date, each Holder of an Allowed General Unsecured Claim shall, by operation of the Plan, be deemed to have received its uncertificated Pro Rata Share of the GUC Litigation Trust Interests pursuant to the terms of the Plan. Certain of the GUC Litigation Trust Interests shall be reserved for Holders of Disputed General Unsecured Claims and issued by the Litigation Trust to, and held by, the Litigation Trustee, pending allowance or disallowance of such Disputed General Unsecured Claims. No other Person or Entity shall have any interest, legal, beneficial, or otherwise, in the Litigation Trust Assets upon the assignment and transfer of such assets to the Litigation Trust. On the Effective Date, VIL, in its capacity as DIP Secured Party and Prepetition Secured Party, shall, by operation of the Plan, be deemed to have received its uncertificated VIL Litigation Trust Interests pursuant to the terms of the Plan. As set forth in the Litigation Trust Agreement, distributions from the Litigation Trust on account of VIL Litigation Trust Interests shall be made from the Litigation Trust Assets after paying, reserving against, or satisfying, among other things, the operating and administrative expenses of the Litigation Trust, including costs, expenses, and obligations incurred by the Litigation Trustee (or professionals who may be employed by the Litigation Trustee in administering the Litigation Trust) in carrying out their responsibilities to the Litigation Trust under the Litigation Trust Agreement solely to the extent such costs or expenses are directly applicable to the pursuit of Estate Tax Refunds. A copy of the Disclosure Statement dated June 20, 2023, is available at https://urlcurt.com/u?l=VeLSNF from cases.ra.kroll.com, the claims agent. Proposed Counsel for the Debtors: Robert S. Brady, Esq. Michael R. Nestor, Esq. Kara Hammond Coyle, Esq. Allison S. Mielke, Esq. YOUNG CONAWAY STARGATT & TAYLOR, LLP Rodney Square, 1000 North King Street Wilmington, DE 19801 Telephone: (302) 571-6600 Facsimile: (302) 571-1253 E-mail: rbrady@ycst.com mnestor@ycst.com kcoyle@ycst.com amielke@ycst.com - and - Jeffrey E. Bjork, Esq. LATHAM & WATKINS LLP 355 South Grand Avenue, Suite 100 Los Angeles, CA 90071 Telephone: (213) 485-1234 Facsimile: (213) 891-8763 Email: jeff.bjork@lw.com - and - George Klidonas, Esq. Anupama Yerramalli, Esq. Liza L. Burton, Esq. 1271 Avenue of the Americas New York, NY 10020 Telephone: (212) 906-1200 Facsimile: (212) 751-4864 E-mail: george.klidonas@lw.com anu.yerramalli@lw.com liza.burton@lw.com About Virgin Orbit Virgin Orbit Holdings, Inc (Nasdaq: VORB) -- http://www.virginorbit.com/-- operates one of the most flexible and responsive space launch systems ever built. Founded by Sir Richard Branson in 2017, the Company began commercial service in 2021, and has already delivered commercial, civil, national security, and international satellites into orbit. Virgin Orbit's LauncherOne rockets are designed and manufactured in Long Beach, California, and are air-launched from a modified 747-400 carrier aircraft that allows Virgin Orbit Holdings, Inc., to operate from locations all over the world in order to best serve each customer's needs. Virgin Orbit Holdings, Inc., and its affiliates sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 23-10405) on April 4, 2023. In the petition filed by Daniel M. Hart, as chief executive, the Debtor reported total assets amounting to $242,978,000 and total debtamounting to $153,491,000 as of Sept. 30, 2022. The Debtors tapped YOUNG CONAWAY STARGATT & TAYLOR, LLP, and LATHAM & WATKINS LLP as counsel; DUCERA PARTNERS LLC as investment banker and financial advisor; and ALVAREZ & MARSAL NORTH AMERICA LLC as restructuring advisor. KROLL RESTRUCTURING ADMINISTRATION LLC is the claims agent. VIRGIN ORBIT: Firefly Buys Remaining Assets After Auction --------------------------------------------------------- Yun Park of Bloomberg Law reports that bankrupt Virgin Orbit Holdings Inc. will sell its remaining assets for $3.8 million to Firefly Aerospace Inc., drawing closer to ending its Chapter 11 case. The assets, which were left over from Virgin Orbit's previous bankruptcy auction, include "Segment 5" inventories at two production facilities in Long Beach, Calif., according to the proposed order filed Thursday, June 15, 2023, in the US Bankruptcy Court for the District of Delaware. "Following the auction, in their business judgment and in consultation with the consultation parties, the debtors continued negotiations with several parties and ultimately deemed Firefly Aerospace, Inc. the successful bidder," Daniel M. Hart, CEO said. About Virgin Orbit Virgin Orbit Holdings, Inc (OTCMKTS: VORBQ) -- http://www.virginorbit.com/-- operates one of the most flexible and responsive space launch systems ever built. Founded by Sir Richard Branson in 2017, the Company began commercial service in 2021, and has already delivered commercial, civil, national security, and international satellites into orbit. Virgin Orbit's LauncherOne rockets are designed and manufactured in Long Beach, California, and are air-launched from a modified 747-400 carrier aircraft that allows Virgin Orbit Holdings, Inc., to operate from locations all over the world in order to best serve each customer's needs. Virgin Orbit Holdings, Inc., and its affiliates sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 23-10405) on April 4, 2023. In the petition filed by Daniel M. Hart, as chief executive officer, Virgin Orbit reported total assets of $242,978,000 and total debt of $153,491,000 as of Sept. 30, 2022. The Debtors tapped YOUNG CONAWAY STARGATT & TAYLOR, LLP, and LATHAM & WATKINS LLP as counsel; DUCERA PARTNERS LLC as investment banker and financial advisor; and ALVAREZ & MARSAL NORTH AMERICA LLC as restructuring advisor. KROLL RESTRUCTURING ADMINISTRATION LLC is the claims agent. The Debtors' indirect parent entity, Virgin Investments Limited, in its role as Lender and Administrative Agent and Collateral Agent, has retained Davis Polk & Wardwell LLP, FTI Consulting, Inc., and Morris, Nichols, Arsht & Tunnell LLP as advisors. VOYAGER DIGITAL: Customers Should Have Their Crypto by July 5 ------------------------------------------------------------- Rick Archer of Law360 reports that Voyager says that customers should have their cryptocurrency by July 5, 2023. The administrator of cryptocurrency lender Voyager Digital's Chapter 11 liquidation plan told a New York bankruptcy judge that the company's app will be back online by Thursday and customers should be able to withdraw their crypto within three weeks. 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; andDeloitte & Touche, LLP as accounting advisor. Stretto, Inc., is the claims agent. On July 19, 2022, the U.S. Trustee for Region 2 appointed an official committee of unsecured creditors in the Chapter 11 cases. The committee tapped McDermott Will & Emery, LLP as bankruptcy counsel; FTI Consulting, Inc. as financial advisor; Cassels Brock & Blackwell, LLP as Canadian counsel; and Epiq Corporate Restructuring, LLC as noticing and information agent. The committee also tapped the services of Harney Westwood & Riegels, LP, in connection with Three Arrows Capital Ltd.'s liquidation proceedings in British Virgin Islands. On July 6, 2022, the Debtors filed a joint Chapter 11 plan of reorganization. * * * Following an auction process, the Debtors in September 2022 selected the bid submitted by FTX US' West Realm Shires Inc. as the winning bid for the assets. But after a series of events, FTX collapsed in November 2022, before the sale could be completed. After reopening bidding, Voyager Digital selected the offer from U.S. exchange BAM Trading Services Inc. (doing business as "Binance.US") as the highest and best bid for its assets. Binance'sbid is valued at $1.022 billion. In April 2023, Binance.US called off its deal to buy assets of bankrupt crypto lender Voyager Digital, citing a "hostile and uncertain regulatory climate." WE KICK BRASS: Seeks Cash Collateral Access ------------------------------------------- We Kick Brass, LLC asks the U.S. Bankruptcy Court for the Southern District of Florida, West Palm Beach Division, for authority to use cash collateral in accordance with the budget to continue to maintain the business. Vox Funding holds a security interest in all of the Debtor's assets. The estimated value of the secured assets at the time of the filing of the case was approximately $51,000. The Debtor had an employee in charge of the finances who convinced the principals that the Debtor needed more capital to purchase more inventory. They agreed and obtained a loan from Vox Funding. The former employee proceeded to steal inventory and cash from the Debtor, putting the Debtor in a difficult financial position. The automatic stay has allowed the Debtor to gain control of the daily cash flow. The Debtor is hopeful that all creditors can be paid in full with a reorganization. Currently, the Debtor generates approximately $28,320 per month in net cash flow income. The necessary expenses are approximately $23,360. The Debtor proposes to pay Vox Funding $1,000 per month as adequate protection. Included within the budget is the amount of $1,000 per month to pay towards the Debtor's accountant's fees and $1,000 per month to pay towards the Debtor's attorney's fees. It is requested that this amount be placed in Brian K. McMahon, P.A. Trust Account and held until further Court order. A copy of the motion is available at https://urlcurt.com/u?l=jYV4IA from PacerMonitor.com. A copy of the budget is available at https://urlcurt.com/u?l=D0rLjS from PacerMonitor.com. The Debtor projects $123,133 in gross income and $23,360 in expenses. About We Kick Brass, LLC We Kick Brass, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 23-14789) on June 20, 2023. In the petition signed by Dawn Perez, manager member, the Debtor disclosed up to $500,000 in both assets and liabilities. Brian K. McMahon, Esq., at Brian K. McMahon, PA, represents the Debtor as legal counsel. WESTERN GLOBAL: Reportedly Considering Bankruptcy Filing -------------------------------------------------------- Western Global Airlines is weighing options including filing for bankruptcy as it faces dwindling liquidity, Bloomberg News reported, citing people with knowledge of the matter. The cargo airline began confidential talks with some of its creditors related to its financing needs last month, Bloomberg previously reported. A final decision has not been made and the situation could change. According to the report, one of the smaller air cargo providers in the United States, Estero, Florida-based Western Global has been burning cash amid cooling demand. It has been dealing with labor shortages that blocked the company from using certain routes to Asia, which led to soaring fuel costs, according to a March note from Moody's Investors Service. The company had US$400 million (S$541 million) in aircraft assets and a fleet of 21 aircraft as of September, according to Moody's. All of the airline's assets, however, are encumbered, limiting its ability to raise new financing. Amid talks with creditors, Truist Financial has been seeking to sell the company's first-lien term loan and revolving credit line with a face value of about US$115 million, people familiar with the efforts said, according to Bloomberg. Truist, the agent on the loans, accepted a bid of about 40 US cents on the dollar for the debt, the people added. The airline had defaulted on the loan earlier this year, they said. About Western Global Western Global Airlines, LLC, is an American cargo airline based in Estero, Florida. The company's services include aircraft leasing, commercial charters and military charters. Its main hub is located at Southwest Florida International Airport in Fort Myers, Florida. WEXFORD LABS: Seeks Cash Collateral Access ------------------------------------------ Wexford Labs, Inc. asks the U.S. Bankruptcy Court for the Southern District of Illinois for authority to use cash collateral and provide adequate protection. The Debtor requires the use of cash collateral to continue its business operations and pay their regular daily expenses. The Debtor is indebted to Financial & Marketing Solutions, L.L.C., in the approximate amount of $403,765. The Debtor is also indebted to Jeffrey L. Singer Revocable Trust in the approximate amount of $1.6 million and to Mary Anne Auer in the approximate amount of $608,592. The Prepetition Indebtedness is secured by certain of the Debtor's assets. Financial Solutions, Singer, and Auer's interests in the cash collateral are adequately protected. To the extent the Financial Solutions, Singer, and Auer have valid security interests in the cash collateral, adequate protection will be provided to them though the granting of replacement liens in any prepetition assets which were subject to their liens to the same extent, validity, priority, perfection, and enforceability as their interests in any assets to the extent of any diminution in value. A copy of the motion is available at https://urlcurt.com/u?l=fgBpyl from PacerMonitor.com. About Wexford Labs, Inc. Wexford Labs, Inc. formulates and manufactures broad-spectrum antimicrobial solutions for healthcare facilities, dental offices, hospitality and food service businesses, educational institutions and public service agencies, pharmaceutical facilities, agricultural businesses and more. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Ill. Case No. 23-30420) on June 20, 2023. In the petition signed by CEO Jeffrey Singer, the Debtor disclosed $1,386,692 in assets and $4,782,608 in liabilities. Judge Laura K. Grandy oversees the case. Robert E. Eggmann, Esq., at Carmody MacDonald P.C., represents the Debtor as legal counsel. WILLOWS AT THE LAKES: Seeks to Hire Payne Law Firm as Counsel ------------------------------------------------------------- Willows at the Lakes - Townhomes, LLC seeks approval from the U.S. Bankruptcy Court for the Western District of Tennessee to employ Payne Law Firm as counsel. The firm will render these services: (a) advise and consult with the Debtor regarding questions arising from certain contract negotiations which will occur during the operation of its business; (b) evaluate and attack claims of various creditors who may assert security interests in the assets and who may seek to disturb the continued operation of the business; (c) appear in, prosecute, or defend suits and proceedings, and to take all necessary and proper steps and other matters and things involved in or connected with the affairs of the estate of the Debtor; (d) represent the Debtor in court hearings and to assist in the preparation of legal papers and documents; (e) advise and consult with the Debtor in connection with any reorganization plan which may be proposed in this proceeding and any matters concerning which arise out of or follow the acceptance or consummation of such reorganization or its rejection; and (f) perform such other legal services on behalf of the Debtor as they become necessary in this proceeding. Jerome Payne, Esq., the main attorney in this representation, will be paid at his hourly rate of $400 plus expenses. Mr. Payne disclosed in a court filing that his firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Jerome C. Payne, Esq. Payne Law Firm 3525 Ridge Meadow Parkway, Suite 100 Memphis, TN 38115 Telephone: (901) 794-0884 Facsimile: (901) 235-1246 Email: jerpaynelaw@gmail.com About Willows at the Lakes - Townhomes Willows at the Lakes - Townhomes, LLC, a company in Woodland Hills, Cal., filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Tenn. Case No. 23-22385) on May 16, 2023, with $1 million to $10 million in both assets and liabilities. Yehuda Netanel, managing member, signed the petition. Judge M. Ruthie Hagan presides over the case. The Debtor tapped Craig M. Geno, Esq., at the Law Offices of Craig M. Geno, PLLC and Jerome C. Payne, Esq., at Payne Law Firm as counsel. WOLF EMPIRE ESTATE: Starts Subchapter V Bankruptcy Process ---------------------------------------------------------- Wolf Empire Estates LLC filed for chapter 11 protection in the Eastern District of Texas. The Debtor elected on its voluntary petition to proceed under Subchapter V of chapter 11 of the Bankruptcy Code. Wolf Empire Estates disclosed $1,440,502 in assets against $1,190,991 in debt owed to 1 to 49 creditors. The Debtor owns the properties at: * 9207 San Fernando Way, Dallas, Texas 75218, * 21505 Santa Domingo Ln, Lago Vista, Texas 78645, and * 303 Dominion Dr., Wylie, Texas 75098. The petition states that funds will not be available to unsecured creditors. A telephonic dial-in information meeting of creditors under 11 U.S.C. Section 341(a) is slated for July 21, 2023 at 10:00 a.m. About Wolf Empire Estates Wolf Empire Estates LLC is engaged in activities related to real estate. Wolf Empire Estates LLC filed a petition for relief under Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. E.D. Tex. Case No. 23-60276) on June 5, 2023. The Debtor reported total assets of $1,440,502 and total liabilities of $1,190,991. The Honorable Bankruptcy Judge Joshua P. Searcy oversees the case. The Subchapter V tustee: Mark A. Weisbart 10501 N Central Expy, Suite 106 Dallas, Texas 75231 Tel: (972) 755-7103 E-mail: MWeisbart@HaywardFirm.com The Debtor is represented by: Robert C. Newark, Esq. A Newark Firm 415 N. 4th St #410 Wills Point, TX 75169 WWMAJ SYSTEMS: Court OKs Continued Cash Collateral Access --------------------------------------------------------- The U.S. Bankruptcy Court for the District of Kansas authorized WWMAJ Systems LLC to use cash collateral on an interim basis in accordance with the budget and the terms and conditions set forth in the First Interim Order. The First Interim Order provided the Debtor may use cash collateral on an interim basis. The Debtor is indebted to Kalamata Capital, LLC pursuant to a Loan and Security Agreement dated October 17, 2022, indebted to Sellers Funding International Portfolio, Ltd. pursuant to multiple Receivables Purchase Agreements dated September 7, 2022, November 8, 2022, and November 12, 2022. Kalamata and SellersFi claim security interests in and liens upon the Debtor's accounts receivable and the proceeds therefrom. In return for the Senior Secured Lenders' consent to the Debtor's use of the cash collateral in which the Senior Secured Lenders claim a secured interest, and as adequate protection to the Senior Secured Lenders, are granted replacement liens in post-petition cash collateral of the Debtor to the same extent that the Senior Secured Lenders have valid liens on pre-petition cash collateral. Additionally, the Debtor will make monthly adequate protection payments equal to the interest that would accrue on the cash collateral used at an annual rate of 10%. The Debtor intends to pay $1,000 every two weeks beginning with June 6, 2023. The Debtor will segregate and hold such payments in the Trust Account of ConroyBaran until a determination of Kalamat's and SellerFi's relative interests and priorities in the cash collateral. To the extent the adequate protection provided to the Senior Secured Lenders proves to not be adequate to protect them against a post-petition diminution in the value of their collateral, then the Senior Secured Lenders are entitled to have their claims for such diminution in value of its collateral allowed as a super-priority administrative expense. A final hearing on the matter is set for September 14, 2023, at 1:46 p.m. A copy of the order is available at https://urlcurt.com/u?l=H68qko from PacerMonitor.com. About WWMAJ Systems WWMAJ Systems LLC is an online retailer with experience in the beverage and grocery industries. WWMAJ Systems LLC filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Court (Bankr. D. Kan. Case No. 23-20536) on May 16, 2023. The petition was signed by Will Young as CEO/President. At the time of filing, the Debtor estimated $100,000 to $500,000 in assets and $1 million to $10 million in liabilities. Judge Dale L. Somers presides over the case. Robert Baran, Esq., at Conroy Baran, represents the Debtor as counsel. YAK TIMBER: Wins Cash Collateral Access Thru July 12 ---------------------------------------------------- The U.S. Bankruptcy Court for the District of Alaska authorized Yak Timber, Inc. to use cash collateral on an interim basis in accordance with the budget, with a 10% variance, through the next interim hearing set for July 12, 2023, at 1:30 p.m. The Debtor requires the use of cash collateral to continue its ongoing operations in the ordinary course of business, and to avoid disruption of such operations. The Debtor is currently indebted to AgWest Farm Credit PCA for several loans. Farm Credit has consented to the Debtor's use of its cash collateral until the later of July 14, 2023, or the conclusion of the Court's next hearing to consider authorization for further interim use of cash collateral, subject to a reservation of Farm Credit's rights arising under 11 U.S.C. section 507(b). As partial adequate protection for the diminution of any interest that Farm Credit holds in prepetition Collateral as a result of the Debtor's use of cash collateral, Farm Credit is granted replacement liens in the Debtor's postpetition assets. To the extent of any diminution in value of Farm Credit's interest in the Prepetition Collateral due to Cash Collateral use, which is not otherwise protected by the Postpetition Lien granted, Farm Credit will retain its rights under 11 U.S.C. section 507(b). The Postpetition Lien and retention of constitute partial adequate protection of Farm Credit's interest in the Prepetition Collateral during the term of the Interim Order but will not prejudice the rights of Farm Credit to request additional adequate protection at any time. As additional adequate protection to Farm Credit, the Debtor will provide evidence of insurance on all of the Debtor's assets. During the interim cash collateral period, the Debtor will pay to Farm Credit interest-only payments at the non-default rate designated in the applicable Loan documents, for the months of June and July 2023 in the amount of $63,768. A copy of the Court's order and the Debtor's budget is available at https://urlcurt.com/u?l=aIqxXj from PacerMonitor.com. The Debtor projects total expenses, on a monthly basis, as follows: $522,731 for May 2023; and $586,499 for June 2023. 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. ZAYO GROUP: MetWest FRI Marks $1.6M Loan at 18% Off --------------------------------------------------- Metropolitan West Fund's Floating Rate Income Fund has marked its $1,635,276 loan extended to Zayo Group Holdings, Inc to market at $1,337,581 or 82% of the outstanding amount, as of March 31, 2023, according to a disclosure contained in the MetWest Fund's Form N-CSR for the Fiscal year ended March 31, 2023, filed with the Securities and Exchange Commission. Floating Rate Income Fund is a participant in a First Lien Term Loan B (LIBOR plus 3%) to Zayo Group Holdings, Inc. The loan accrues interest at a rate of 7.84% per annum. The loan matures on March 9, 2027. The Metropolitan West Funds is an open-end management investment company organized as a Delaware statutory trust on December 9, 1996 and registered under the Investment Company Act of 1940, as amended. Metropolitan West Asset Management, LLC, a federally registered investment adviser, provides the Funds with investment management services. The Trust currently consists of 14 separate portfolios. Zayo Group s a privately held company headquartered in Boulder, Colorado, with European headquarters in London, England. The company provides communications infrastructure services. ZAYO GROUP: MetWest FRI Marks $495,000 Loan at 20% Off ------------------------------------------------------ Metropolitan West Fund's Floating Rate Income Fund has marked its $495,000 loan extended to Zayo Group Holdings, Inc to market at $394,020 or 80% of the outstanding amount, as of March 31, 2023, according to a disclosure contained in the MetWest Fund's Form N-CSR for the Fiscal year ended March 31, 2023, filed with the Securities and Exchange Commission. Floating Rate Income Fund is a participant in a First Lien Term Loan B (SOFR plus 4.25%) to Zayo Group Holdings, Inc. The loan accrues interest at a rate of 9.06% per annum. The loan matures on March 9, 2027. The Metropolitan West Funds is an open-end management investment company organized as a Delaware statutory trust on December 9, 1996 and registered under the Investment Company Act of 1940, as amended. Metropolitan West Asset Management, LLC, a federally registered investment adviser, provides the Funds with investment management services. The Trust currently consists of 14 separate portfolios. Zayo Group is a privately held company headquartered in Boulder, Colorado, with European headquarters in London, England. The company provides communications infrastructure services. ZIP MAILING: Seeks to Hire McNamee Hosea as Bankruptcy Counsel -------------------------------------------------------------- Zip Mailing Services, Inc. seeks approval from the U.S. Bankruptcy Court for the District of Maryland to employ McNamee Hosea, PA as its bankruptcy counsel. The firm will render these services: (a) prepare and file the petition, schedules, statement of affairs and other documents required by the court; (b) represent the Debtor at the initial debtor interview and meeting of creditors; (c) counsel the Debtor in connection with the formulation, negotiation, and promulgation of plans of reorganization and related documents; (d) advise the Debtor concerning, and assist in the negotiation and documentation of financing agreements, debt restructurings and related transactions; (e) review the validity of liens asserted against the property of the Debtor and advise the Debtor concerning the enforceability of such liens; (f) prepare all necessary legal documents; and (g) perform all other legal services. The hourly rates of the firm's counsel and staff are as follows: Partners $375 Associates $325 Paralegal $100 Christopher Hamlin, Esq., an attorney at McNamee Hosea, disclosed in a court filing that the firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Christopher L. Hamlin, Esq. McNamee Hosea, PA 6404 Ivy Lane, Suite 820 Greenbelt, MD 20770 Telephone: (301) 441-2420 Facsimile: (301) 982-9450 Email: chamlin@mhlawyers.com About Zip Mailing Services Inc. Zip Mailing Services, Inc., operates a commercial mailing service out of Landover, Md., sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Md. Case No. 23-13736) on May 26, 2023, with up to $500,000 in assets and up to $10 million in liabilities. Darryl Jackson, Jr., president, signed the petition. Judge Maria Elena Chavez-Ruark oversees the case. Christopher L. Hamlin, Esq., at McNamee Hosea, PA, represents the Debtor as legal counsel. [^] BOND PRICING: For the Week from June 19 to 23, 2023 ------------------------------------------------------- Company Ticker Coupon Bid Price Maturity ------- ------ ------ --------- -------- 99 Escrow Issuer Inc NDN 7.500 37.750 1/15/2026 99 Escrow Issuer Inc NDN 7.500 37.534 1/15/2026 99 Escrow Issuer Inc NDN 7.500 37.534 1/15/2026 Acorda Therapeutics Inc ACOR 6.000 64.459 12/1/2024 Air Methods Corp AIRM 8.000 5.500 5/15/2025 Air Methods Corp AIRM 8.000 4.565 5/15/2025 Amyris Inc AMRS 1.500 23.625 11/15/2026 Applied Optoelectronics AAOI 5.000 78.542 3/15/2024 Audacy Capital Corp CBSR 6.750 2.289 3/31/2029 Audacy Capital Corp CBSR 6.500 2.084 5/1/2027 Audacy Capital Corp CBSR 6.750 2.833 3/31/2029 BCB Bancorp Inc BCBP 5.625 94.474 8/1/2028 BCB Bancorp Inc BCBP 5.625 94.474 8/1/2028 BPZ Resources Inc BPZR 6.500 3.017 3/1/2049 Bed Bath & Beyond Inc BBBY 5.165 2.375 8/1/2044 Bed Bath & Beyond Inc BBBY 3.749 2.800 8/1/2024 Bed Bath & Beyond Inc BBBY 4.915 3.000 8/1/2034 Biora Therapeutics Inc BIOR 7.250 53.546 12/1/2025 Brixmor LLC BRX 6.900 9.875 2/15/2028 Citizens Financial Group CFG 6.000 88.750 N/A Clovis Oncology Inc CLVS 1.250 12.120 5/1/2025 Clovis Oncology Inc CLVS 4.500 11.364 8/1/2024 Clovis Oncology Inc CLVS 4.500 12.250 8/1/2024 Curo Group Holdings Corp CURO 7.500 21.685 8/1/2028 Curo Group Holdings Corp CURO 7.500 22.659 8/1/2028 Diamond Sports Group LLC / Diamond Sports Finance Co DSPORT 5.375 4.000 8/15/2026 Diamond Sports Group LLC / Diamond Sports Finance Co DSPORT 6.625 2.938 8/15/2027 Diamond Sports Group LLC / Diamond Sports Finance Co DSPORT 5.375 3.877 8/15/2026 Diamond Sports Group LLC / Diamond Sports Finance Co DSPORT 5.375 3.750 8/15/2026 Diamond Sports Group LLC / Diamond Sports Finance Co DSPORT 6.625 2.448 8/15/2027 Diamond Sports Group LLC / Diamond Sports Finance Co DSPORT 5.375 3.877 8/15/2026 Diamond Sports Group LLC / Diamond Sports Finance Co DSPORT 5.375 3.683 8/15/2026 Diebold Nixdorf Inc DBD 9.375 18.250 7/15/2025 Diebold Nixdorf Inc DBD 8.500 1.000 10/15/2026 Diebold Nixdorf Inc DBD 9.375 18.000 7/15/2025 Diebold Nixdorf Inc DBD 9.375 17.933 7/15/2025 Diebold Nixdorf Inc DBD 8.500 3.750 10/15/2026 Diebold Nixdorf Inc DBD 9.375 17.933 7/15/2025 Diebold Nixdorf Inc DBD 9.375 17.837 7/15/2025 Diebold Nixdorf Inc DBD 8.500 0.857 10/15/2026 Discover Bank DFS 4.682 91.177 8/9/2028 EQT Corp EQT 5.678 99.423 10/1/2025 Endo Finance LLC / Endo Finco Inc ENDP 5.375 5.000 1/15/2023 Endo Finance LLC / Endo Finco Inc ENDP 5.375 5.000 1/15/2023 Energy Conversion Devices ENER 3.000 0.551 6/15/2013 Envision Healthcare Corp EVHC 8.750 1.500 10/15/2026 Envision Healthcare Corp EVHC 8.750 1.500 10/15/2026 Exela Intermediate LLC / Exela Finance Inc EXLINT 11.500 9.670 7/15/2026 Exela Intermediate LLC / Exela Finance Inc EXLINT 11.500 9.725 7/15/2026 Federal Home Loan Banks FHLB 3.000 99.353 6/30/2023 Federal Home Loan Banks FHLB 2.275 99.335 6/30/2023 Federal Home Loan Banks FHLB 2.300 99.305 7/3/2023 Federal Home Loan Banks FHLB 2.300 99.725 6/27/2023 Federal Home Loan Banks FHLB 2.600 99.350 6/29/2023 Federal Home Loan Banks FHLB 2.680 99.714 6/29/2023 Federal Home Loan Banks FHLB 2.700 99.732 6/27/2023 Federal Home Loan Banks FHLB 2.520 99.711 6/29/2023 Federal Home Loan Banks FHLB 0.500 99.289 6/30/2023 Federal Home Loan Mortgage Corp FHLMC 1.575 99.712 6/28/2023 First Citizens Bancshares Inc/TX FIRCTZ 6.000 89.611 9/1/2028 First Citizens Bancshares Inc/TX FIRCTZ 6.000 89.611 9/1/2028 First Republic Bank/CA FRCB 4.375 0.561 8/1/2046 GNC Holdings Inc GNC 1.500 0.459 8/15/2020 Goodman Networks Inc GOODNT 8.000 1.000 5/31/2022 Gossamer Bio Inc GOSS 5.000 31.250 6/1/2027 Groupon Inc GRPN 1.125 36.750 3/15/2026 H-Food Holdings LLC / Hearthside Finance Co HEFOSO 8.500 40.762 6/1/2026 H-Food Holdings LLC / Hearthside Finance Co HEFOSO 8.500 40.859 6/1/2026 Hallmark Financial Services Inc HALL 6.250 25.742 8/15/2029 HarborOne Bancorp Inc HONE 5.625 94.183 9/1/2028 Inseego Corp INSG 3.250 41.250 5/1/2025 Invacare Corp IVC 4.250 4.840 3/15/2026 Invacare Corp IVC 5.000 1.099 11/15/2024 JPMorgan Chase & Co JPM 2.000 85.700 8/20/2031 JPMorgan Chase Bank NA JPM 2.000 82.045 9/10/2031 Lannett Co Inc LCIN 7.750 5.500 4/15/2026 Lannett Co Inc LCIN 7.750 5.951 4/15/2026 Lannett Co Inc LCIN 4.500 1.297 10/1/2026 Lightning eMotors Inc ZEV 7.500 54.319 5/15/2024 MBIA Insurance Corp MBI 16.520 5.500 1/15/2033 MBIA Insurance Corp MBI 16.804 2.000 1/15/2033 Macy's Retail Holdings LLC M 6.900 87.251 1/15/2032 Macy's Retail Holdings LLC M 7.875 96.205 3/1/2030 Macy's Retail Holdings LLC M 6.900 87.251 1/15/2032 Macy's Retail Holdings LLC M 7.875 96.205 3/1/2030 Mashantucket Western Pequot Tribe MASHTU 7.350 41.250 7/1/2026 Morgan Stanley MS 1.800 72.040 8/27/2036 NBC Bancshares in Pawhuska Inc NBCBNC 6.950 93.463 9/1/2028 NBC Bancshares in Pawhuska Inc NBCBNC 6.950 93.463 9/1/2028 National CineMedia LLC NATCIN 5.750 0.625 8/15/2026 OMX Timber Finance Investments II LLC OMX 5.540 0.850 1/29/2020 Old Second Bancorp Inc OSBC 9.009 99.785 12/31/2026 Party City Holdings Inc PRTY 8.750 12.902 2/15/2026 Party City Holdings Inc PRTY 8.750 12.902 2/15/2026 Party City Holdings Inc PRTY 10.130 12.609 7/15/2025 Party City Holdings Inc PRTY 6.625 1.000 8/1/2026 Party City Holdings Inc PRTY 6.625 0.750 8/1/2026 Party City Holdings Inc PRTY 10.130 12.609 7/15/2025 Photo Holdings Merger Sub Inc SFLY 8.500 46.157 10/1/2026 Photo Holdings Merger Sub Inc SFLY 11.000 45.000 10/1/2027 Porch Group Inc PRCH 0.750 32.375 9/15/2026 Precigen Inc PGEN 3.500 99.563 7/1/2023 Radiology Partners Inc RADPAR 9.250 36.954 2/1/2028 Radiology Partners Inc RADPAR 9.250 37.212 2/1/2028 Redfin Corp RDFN 1.750 98.163 7/15/2023 Renco Metals Inc RENCO 11.500 24.875 7/1/2003 Rite Aid Corp RAD 7.700 28.547 2/15/2027 Rite Aid Corp RAD 6.875 24.655 12/15/2028 Rite Aid Corp RAD 6.875 24.655 12/15/2028 RumbleON Inc RMBL 6.750 42.170 1/1/2025 SBL Holdings Inc SECBEN 7.000 66.400 N/A SBL Holdings Inc SECBEN 7.000 60.000 N/A SVB Financial Group SIVB 4.000 6.750 N/A SVB Financial Group SIVB 4.100 7.025 N/A SVB Financial Group SIVB 4.700 7.500 N/A SVB Financial Group SIVB 4.250 7.025 N/A Shift Technologies Inc SFT 4.750 10.516 5/15/2026 Signature Bank/New York NY SBNY 4.000 1.000 10/15/2030 Signature Bank/New York NY SBNY 4.125 1.266 11/1/2029 Talen Energy Supply LLC TLN 10.500 31.125 1/15/2026 Talen Energy Supply LLC TLN 6.500 28.895 6/1/2025 Talen Energy Supply LLC TLN 7.000 23.375 10/15/2027 Talen Energy Supply LLC TLN 9.500 23.378 7/15/2022 Talen Energy Supply LLC TLN 6.500 23.375 9/15/2024 Talen Energy Supply LLC TLN 10.500 34.750 1/15/2026 Talen Energy Supply LLC TLN 6.500 23.375 9/15/2024 Talen Energy Supply LLC TLN 10.500 34.750 1/15/2026 Talen Energy Supply LLC TLN 9.500 23.378 7/15/2022 Team Health Holdings Inc TMH 6.375 54.550 2/1/2025 Team Health Holdings Inc TMH 6.375 52.554 2/1/2025 TerraVia Holdings Inc TVIA 5.000 4.644 10/1/2019 Tricida Inc TCDA 3.500 10.800 5/15/2027 US Renal Care Inc USRENA 10.625 27.721 7/15/2027 US Renal Care Inc USRENA 10.625 27.997 7/15/2027 UpHealth Inc UPH 6.250 31.433 6/15/2026 WeWork Cos Inc WEWORK 7.875 42.866 5/1/2025 WeWork Cos Inc WEWORK 7.875 41.750 5/1/2025 Wesco Aircraft Holdings WAIR 9.000 9.500 11/15/2026 Wesco Aircraft Holdings WAIR 8.500 4.500 11/15/2024 Wesco Aircraft Holdings WAIR 13.125 7.750 11/15/2027 Wesco Aircraft Holdings WAIR 13.125 7.328 11/15/2027 Wesco Aircraft Holdings WAIR 9.000 10.508 11/15/2026 Wesco Aircraft Holdings WAIR 8.500 5.658 11/15/2024 Western Global Airlines WGALLC 10.375 7.548 8/15/2025 Western Global Airlines WGALLC 10.375 7.644 8/15/2025 Zions Bancorp NA ZION 7.200 84.000 N/A ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. On Thursdays, the TCR delivers a list of recently filed Chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. The Sunday TCR delivers securitization rating news from the week then-ending. TCR subscribers have free access to our on-line news archive. Point your Web browser to http://TCRresources.bankrupt.com/and use the e-mail address to which your TCR is delivered to login. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Philadelphia, Pa., USA. Randy Antoni, Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Joel Anthony G. Lopez, Psyche A. Castillon, Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 2023. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $975 for 6 months delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Peter A. Chapman at 215-945-7000. *** End of Transmission ***