/raid1/www/Hosts/bankrupt/TCR_Public/230705.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Wednesday, July 5, 2023, Vol. 27, No. 185
Headlines
130 BOWERY ACQUISITION: Deal on Interim Cash Collateral Use OK'd
22 ERICSSON: Public Sale Auction Set for Sept. 12
2202 EAST ANDERSON: Trustee Has Deal on Cash Collateral Access
ACJK INC: Wins Cash Collateral Access Thru Sept 6
AEARO TECHNOLOGIES: 11th Circuit Hears Earplug Rulings Appeal
AKRON REBAR: Court OKs Cash Collateral Access Thru July 31
AMBA MANAGEMENT: Case Summary & Four Unsecured Creditors
AMERICAN LAND: Court OKs Cash Collateral Access Thru July 28
APOSTOLIC ASSEMBLY: Case Summary & Six Unsecured Creditors
ARCHDIOCESE OF AGANA: Court Closes Bankruptcy Case
ATENTO SA: Enters Into Restructuring Support Agreement
BDC GROUP: Files for Chapter 11 Bankruptcy Protection
BED BATH & BEYOND: Judge Won’t Toss $240-Million Loan
BLOCKFI INC: Unsecured Creditors Seek Control of Bankruptcy Case
BLUE DIAMOND: Breitburn Seeks Chapter 11 Trustee Appointment
CARVER BANCORP: Incurs $4.4 Million Net Loss in FY Ended March 31
CELSIUS NETWORK: Court Wants Opinion of SEC on Token
CENTER FOR ALTERNATIVE: Has Deal on Cash Collateral Access
CINEWORLD GROUP: Court Confirms Bankruptcy Exit Plan
CLEAN ENERGY: Taps Plante & Moran as Accountant
COMPREHENSIVE PAIN: Files Emergency Bid to Use Cash Collateral
CREEKSIDE HMB: Christopher Hayes Named Subchapter V Trustee
DAVID'S BRIDAL: Gets Tentative Bid to Keep Majority Stores Open
DE LA REINA: Case Summary & Two Unsecured Creditors
DIAMOND SPORTS: JPMorgan Gets Subpoena in Chapter 11 Case
DIGICEL GROUP: Davis Polk Advises Business on Restructuring
DIVISION SEVEN: Has Deal on Cash Collateral Access
ENVISTACOM LLC: Wins Cash Collateral Access Thru Sept 30
FEDNAT HOLDING: Committee Taps MFSolomon as Special Tax Counsel
FORMING MACHINING: S&P Downgrades ICR to 'CCC', Outlook Negative
FTX TRADING, VOYAGER DIGITAL: Mediation Overseen by SDNY Judge
GOLDEN DEVELOPING: Carol Fox Named Subchapter V Trustee
GOLDEN KEY: Wins Cash Collateral Access Thru Sept 30
HAYNIE TRUCKING: Taps Keith Y. Boyd P.C. as Legal Counsel
HENRRY DELIVERY: Taps A+ Accounting & Tax as Accountant
HERITAGE SPECIALTY: Court OKs Interim Cash Collateral Access
HICKORY HILLZ: Wins Cash Collateral Access Thru July 26
ILLUMINE MEDSPA: Court OKs Cash Collateral Access Thru Aug 22
KABBAGE INC: Confirmed Plan Declared Effective June 20
KDC AGRIBUSINESS: $30MM DIP Loan from UMB Bank Has Interim OK
LIVEONE INC: Incurs $10 Million Net Loss in FY Ended March 31
LORDSTOWN MOTORS: Foxconn Fights Back at Chapter 11 Grievances
MASTERS III: Wins Cash Collateral Access Thru July 27
MCCONNEL SAND: Seeks Cash Collateral Access
MERIDIEN ENERGY: Taps MorrisAnderson as Financial Advisor
MICKEYS SPORTS BAR: Files for Chapter 11, Landlord Seeks Eviction
MONITRONICS: Latham & Watkins Advises Business on Chapter 11 Plan
MOVIA ROBOTICS: Taps Koos & Company as Accountant
NEO ACCOUNTING: Seeks Cash Collateral Access Thru July 31
NETFOR INC: Deborah Caruso Named Subchapter V Trustee
NEYOWS OF ATLANTA: Files Emergency Bid to Use Cash Collateral
OKAYSOU CORP: Seeks Cash Collateral Access
ONORATI CONSTRUCTION: Seeks Cash Collateral Access
ORION TECHNOLOGIES: Court OKs Interim Cash Collateral Access
OXBOW PROPERTIES: Beverly Brister Named Subchapter V Trustee
PACIFIC GREEN: Incurs $11.8 Million Net Loss in FY Ended March 31
PACIFICA CMFM: Files Emergency Bid to Use Cash Collateral
PEER STREET: Okayed to Tap Cash Collateral Pending Mortgage Sale
PERSHARD INVESTMENTS: Wins Interim Cash Collateral Access
PHOENIX TELECOM: Files for Chapter 11 to Downsize
PICCARD PETS: Bid to Use Cash Collateral Denied as Moot
PLUMBING TECHNOLOGIES: Starts Subchapter V Bankruptcy Case
PROSPERITAS LEADERSHIP: Charter School Files Subchapter V Case
PUERTO RICO: Court Sets PREPA Bondholders Claim at $2.38 Billion
PUERTO RICO: Nuveen, Blackrock Will Appeal $2.4B. Cap on Claim
PUERTO RICO: PREPA Bankruptcy Judge Advances Case as Appeal Looms
R.B. DWYER: Seeks Cash Collateral Access Thru Sept 8
RESCOM LTD: Wins Interim Cash Collateral Access
SAFFIRE VAPOR: Glen Watson Named Subchapter V Trustee
SAN ANTONIO ASPHALT: Wins Cash Collateral Access on Final Basis
SATURNO DESIGN: Case Summary & 13 Unsecured Creditors
SMILE HOMECARE: Taps Law Office of Rachel S. Blumenfeld as Counsel
SOLER & SOLER: Court OKs Cash Collateral Access on Final Basis
SOUTHERN DRILL: Case Summary & 13 Unsecured Creditors
SUPPLY CHAIN WAREHOUSES: Seeks Cash Collateral Access Thru July 30
SUPPLY CHAIN: Tiffany Caron Named Subchapter V Trustee
T-ROLL CONSTRUCTION: Lender's Bid to Prohibit Cash Access OK'd
T. JONES TRUCKING: Seeks Cash Collateral Access
TANTUM COMPANIES: Seeks $450,000 DIP Loan from Guaranty Bank
THREE NICKELS: Taps Buchbinder Tunick & Company as Accountant
TRISEPTEM DEVELOPERS: Taps Scott B. Riddle as Substitute Counsel
TWILIGHT HAVEN: Lisa Holder Named Subchapter V Trustee
VERA HOLDINGS: Case Summary & One Unsecured Creditor
VISTAGEN THERAPEUTICS: Incurs $59.25M Net Loss in FY Ended March 31
VITAL PHARMA: Enters Into Asset Purchase Agreement with Monster
VMR CONTRACTORS: Court OKs Cash Collateral Access Thru July 31
WCS PROPERTY: Case Summary & Three Unsecured Creditors
WEWORK INC: Deven Parekh Quits as Director
[] Commercial Chapter 11 Filings Up 68% in First Half 2023
*********
130 BOWERY ACQUISITION: Deal on Interim Cash Collateral Use OK'd
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
authorized 130 Bowery Acquisition LLC to use cash collateral on an
interim basis in accordance with its agreement with its secured
lender, Wells Fargo Bank, National Association, As Trustee For The
Benefit of the Registered Holders of CCUBS Commercial Mortgage
Trust 2017-C1, Commercial Mortgage Pass-Through Certificates,
Series 2017-C1, acting by and through its special servicer, Midland
Loan Services, a Division of PNC Bank, National Association, under
the Pooling and Servicing Agreement dated November 1, 2017.
Pursuant to the Loan Agreement dated as of October 11, 2017
executed by and between the Debtor and Cantor Commercial Real
Estate Lending, L.P., the Secured Noteholder's
predecessor-in-interest, the Original Lender made a loan to the
Borrower in the original principal amount of $12 million. To
evidence its indebtedness under the Loan Agreement, on October 11,
2017, the Debtor executed and delivered to the Original Lender an
Amended, Restated and Consolidated Promissory Note. To secure
payment of the Note, the Debtor executed, acknowledged and
delivered to the Original Lender, an Amended, Restated and
Consolidated Mortgage, Assignment of Leases and Rents, Security
Agreement and Fixture Filing also dated as of October 11, 2017.
On October 19, 2017, the Original Lender duly recorded the Mortgage
in the Office of City Register of the City of New York as City
Register File Number 2017000385779 and duly paid the mortgage
recording taxes. The Mortgage granted the Original Lender liens and
security interests in the Debtor's Land, Additional Land,
Improvements, Easements, Equipment, Fixtures, Personal Property,
Leases and Rents, Condemnation Awards, Insurance Proceeds, Tax
Certiorari, Conversion, Rights, Agreements, Trademarks, Accounts
and Other Rights, as each of such terms is defined in the
Mortgage.
As of the Petition Date, Wells Fargo asserts that the total
indebtedness due under the Loan was at least $19 million. The
Secured Noteholder consents to the Debtor's use of cash collateral
during the period beginning on the date of entry of the Order and
ending on the Termination Date solely and exclusively for the
disbursements set forth in the budget.
As adequate protection, Wells Fargo is granted replacement security
interests and liens on all the Debtor's assets and property. No
later than the third business day of each month, the Debtor will
make an adequate protection payment to the Secured Noteholder in an
amount of $1,625 per diem for the prior month, and will make a real
estate tax escrow payment to the Secured Noteholder in the amounts
set forth in the Budget to be maintained by the Secured Noteholder.
The Debtor will make a monthly insurance escrow payment to the
Secured Noteholder in the amount set forth in the Budget.
As additional adequate protection, if and to the extent that the
Replacement Liens prove insufficient to adequately protect the
interests of the Secured Noteholder in the Collateral, then Wells
Fargo will have a super-priority administrative claim against the
Debtor under 11 U.S.C. section 507(b).
The Debtor's right to use cash collateral will terminate on the
earlier to occur of:
(i) an Event of Default under the Order;
(ii) an order of the Court terminating the use of the cash
collateral;
(iii) the closing of a sale of the Property; or
(iv) July 31, 2023 at 5:00 p.m.
These events constitute an "Event of Default":
(i) any violation or breach of any of the terms of the Order
by the Debtor;
(ii) conversion of the Bankruptcy Case to one under Chapter 7
of the Bankruptcy Code;
(iii) the appointment under 11 U.S.C. section 1104 of a trustee
or an examiner in the Bankruptcy Case;
(iv) the dismissal of the Bankruptcy Case under 11 U.S.C.
section 1112;
(v) entry of an order under section 305 of Bankruptcy Code
dismissing, staying, suspending or abstaining from hearing the
Bankruptcy Case;
(vi) the lifting of the automatic stay under section 362 of the
Bankruptcy Code with respect to the Debtor's interest in any of the
Collateral; or
(vii) the entry of any order modifying, reversing, revoking,
staying, rescinding, vacating, or amending this Order without the
prior express written consent of the Secured Noteholder.
A copy of the order is available at https://urlcurt.com/u?l=k3yJWL
from PacerMonitor.com.
About 130 Bowery Acquisition LLC
130 Bowery Acquisition LLC sought protection for relief under
Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Case No.
22-11109) on August 12, 2022, with up to $50,000 in both assets and
liabilities.
Judge John P Mastando III presides over the case.
Dawn Kirby, Esq., at Kirby Aisner & Curley, LLP and The Law Offices
of Fred L. Seeman represent the Debtor as bankruptcy counsel and
special litigation counsel, respectively.
22 ERICSSON: Public Sale Auction Set for Sept. 12
-------------------------------------------------
Deutsche Bank AG New York Branch ("secured party") will sell at
public auction all limited liability company interests held by
Milber Holding LLC in 22 Ericsson Owner LLC ("pledged entity") such
interests. As of May 16, 2023, the equity interests secured
indebtedness owing by pledgor to secured party in a principal
amount of not less than $4,660,000 plus unpaid interest, attorneys'
fees and other charges including the costs to sell the equity
interests ("debt").
The public auction sale will be held on Sept. 12, 2023, at 12:00
p.m. (EST) by virtual bidding via zoom via the zoom meeting link
https://bit.ly/WilberUCC, meeting ID: 882 9761 8457, passcode:
550309 or by telephone at +1-646-558-8656 (US), using same meeting
ID and passcode.
The public sale will be conducted by Mannion Auctions LLC by
Matthew D. Mannion and William E. Mannion.
Secured party's understanding, without making any representation or
warranty as to accuracy or completeness, is that the principal
asset of the pledged entity is the real property located 27 North
Moore Street, Commercial Unit #2, New York, New York 10013 also
knowns as 22-26 Ericsson Place, New York, New York 10013, which is
a commercial condominium unit.
Parties interested in bidding on the equity interests must contact
Greg Corbin, secured party's broker, North Point Realty Group, via
email at greg@northpointreg.com. Upon execution of a standard
non-disclosure agreement, additional documentation and information
will be available. Interested parties who do not contact the
Broker and register before the public sale will not be permitted to
participate in bidding at the public sale.
2202 EAST ANDERSON: Trustee Has Deal on Cash Collateral Access
--------------------------------------------------------------
Carolyn A. Dye, the Chapter 11 trustee for 2202 East Anderson Ave,
LLC and Pacific Premier Bank advised the U.S. Bankruptcy Court for
the Central District of California, Los Angeles Division, that they
have reached an agreement regarding the Debtor's use of cash
collateral and now desire to memorialize the terms of this
agreement into an agreed order.
On November 7, 2017, the bank made a loan to the Debtor in the
principal sum of $4.420 million, as evidenced by a Promissory Note.
The Debtor concurrently executed a Deed of Trust and Assignment of
Rents, dated November 7, 2017 granting a lien in favor of the bank
encumbering the real property located at 2800-2850 S. Santa Fe
Ave., Vernon, CA 90036 to secure the Loan. The Deed of Trust
contains an assignment of rents in favor of Creditor.
As of the Petition Date, the Debtor owed the bank not less than
$4.280 million under the Loan, including outstanding principal of
$4.023 million, $160,600.40 in accrued interest, force placed
insurance premiums of $54,695, foreclosure costs of $13,715 and
late charges of $27,987.
The Debtor requires the use of cash collateral to pay the ordinary
and necessary expenses of operating and maintaining the Property.
As adequate protection and in view of 11 U.S.C. section 362(d)(3),
the Trustee agreed to make monthly payments to the bank equal to
non-default interest by June 23, 2023 and on the 10th calendar day
of each subsequent month.
As further protection against a decline in the value of the
Collateral, and in addition to any lien of Creditor by virtue of 11
U.S.C. section 552(b), the bank will be granted a replacement lien
on all assets to which the the bank's prepetition lien attached and
would have attached but for the filing of the Debtor's bankruptcy
petition.
A copy of the stipulation and the Debtor's budget is available at
https://urlcurt.com/u?l=m0qYBe from PacerMonitor.com.
The Debtor projects total expenses, on a monthly basis, as
follows:
$12,872 for June 2023;
$9,341 for July 2023; and
$9,341 for July 2023.
About 2202 East Anderson Street
2202 East Anderson Street, LLC, a Los Angeles-based company, filed
a petition under Chapter 11, Subchapter V of the Bankruptcy Code
(Bankr. C.D. Calif. Case No. 23-11695) on March 23, 2023, with $1
million to $10 million in both assets and liabilities. Susan K.
Seflin was appointed as Subchapter V trustee.
On May 22, 2023, the bankruptcy court issued an order striking 2202
East's designation as a Subchapter V debtor and the next day the
court ordered the U.S. Trustee for Region 16 to appoint a Chapter
11 trustee. Carolyn A. Dye was named Chapter 11 trustee.
Judge Neil W. Bason oversees the case.
The Debtor is represented by Raymond H. Aver, Esq., at the Law
Offices of Raymond H. Aver.
ACJK INC: Wins Cash Collateral Access Thru Sept 6
-------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Illinois
authorized ACJK, Inc. to use cash collateral on an interim basis in
accordance with the budget, through September 6, 2023.
The Debtor is permitted to use cash collateral to pay all
reasonable costs and expenses associated with the collection,
preservation, marketing, and sale of Debtor's assets, not to exceed
$2,000 per month, plus litigation of any causes of action and
disputes arising therefrom, including payment of professional fees
and expenses, not to exceed $5,000 per month. The Debtor is also
granted authority to use cash collateral to pay up to $1,000 for
document shredding.
As adequate protection for, and to the extent of, diminution in the
value of their interest in the Prepetition Collateral during the
Chapter 11 Case resulting from the use of the cash collateral, the
secured creditors, consisting of the Small Business Administration,
Cardinal Health, Inc., FC Marketplace, and Rapid Finance, are
granted replacement liens. The liens are subject and subordinate to
administrative expenses:
(a) all fees payable to the Office of United State Trustee;
and
(b) all court-approved fees and expenses incurred by the
Debtor's court approved professionals.
The Replacement Liens will be, valid, perfected, enforceable, and
effective as of the date of the Order without the need for any
further action by the Debtor, the Secured Lenders, or the necessity
of execution or filing of any instruments or agreements.
A copy of the order is available at https://urlcurt.com/u?l=fM0Wk4
from PacerMonitor.com.
About ACJK Inc.
ACJK Inc., d/b/a Medicap Pharmacy --
https://granitecity.medicap.com/ -- is a local pharmacy that offers
services such as immunizations, medication therapy management,
multi-dose packaging, medication synchronization, important health
screenings, and expert care.
ACJK Inc. filed a petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. S.D. Ill. Case No. 23-30045) on January 30,
2023. In the petition filed by Mark Allen, as manager, the Debtor
reported assets and liabilities between $1 million and $10 million
each.
The case is overseen by the Hon. Bankruptcy Judge Laura K. Grandy.
The Debtor is represented by Michael J Benson, Esq., at A
Bankruptcy Law Firm, LLC.
AEARO TECHNOLOGIES: 11th Circuit Hears Earplug Rulings Appeal
-------------------------------------------------------------
Julie Steinberg of Bloomberg Law reports that lawyers for 3M Co.
and a veteran fielded a barrage of questions from the Eleventh
Circuit on whether the company can relitigate issues in bankruptcy
court that a district judge already decided in earplug personal
injury litigation that's yielded more than $250 million in
verdicts.
The relitigation question is part of multi-pronged litigation over
claims by more than 230,000 veterans who allege that badly designed
combat earplugs made by 3M unit Aearo Technologies LLC damaged
their hearing.
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.
AKRON REBAR: Court OKs Cash Collateral Access Thru July 31
----------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
authorized Akron Rebar Company and Sentinel Intelligence Group LLC
to use cash collateral on a final basis in accordance with the
budget, through July 31, 2023.
Akron Rebar is indebted to:
-- SMS Financial Strategic Investments III, LLC in the amount
of $3.3 million for loans taken in 2018;
-- the Stump Trust in the amount of $350,000 for seller
financing; and
-- the U.S. Small Business Administration in the amount of
$499,900 for EIDL loans taken in 2020.
The Debtor also acknowledges tax liens in favor of the U.S.
Internal Revenue Service in the amount of $370,979.
The Prepetition Indebtedness owed to SMS, the Stump Trust and the
SBA are secured by a valid and perfected security interest in
substantially all of Akron Rebar's accounts, general intangibles,
chattel paper, documents, inventory, furniture, fixtures and
equipment, and the proceeds of the same. As result, all Akron
Rebar's cash on hand or in deposit accounts is the proceeds of the
Secured Creditors' liens on the Collateral.
As adequate protection, the Secured Creditors are granted
Replacement Liens in property acquired by the Debtors after the
Petition Date that is of the same type as the Collateral against
which each Secured Creditor asserted a lien prior to the filing of
the Debtors' Petitions, to the extent of the diminution of the
value of the Secured Creditors' interest in cash collateral as of
the Petition Date. The Replacement Liens will have the same
validity, priority, and extent (if any) as the liens on Collateral
that existed on the Petition Date. The Replacement Liens granted
are deemed perfected without the necessity for filing or execution
of documents which might otherwise be required under non-bankruptcy
laws for the perfection of security interests.
A copy of the Court's order and the Debtor's budget is available at
https://urlcurt.com/u?l=QE66CD from PacerMonitor.com.
The Debtor projects total expenses, on a monthly basis, as
follows:
$291 for May 2023;
$1,147 for June 2023; and
$83,147 for July 2023;
About Akron Rebar Co.
Akron Rebar Co. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ohio Case No. 23-50624) on May 4,
2023. In the petition signed by Michael B. Humphrey, Sr., vice
president and secretary, the Debtor disclosed up to $1 million in
assets and up to $10 million in liabilities.
Judge Alan M. Koschik oversees the case.
Peter G. Tsarnas, Esq., at Gertz & Rosen, Ltd., represents the
Debtor as legal counsel.
AMBA MANAGEMENT: Case Summary & Four Unsecured Creditors
--------------------------------------------------------
Debtor: Amba Management Corp.
9250 150th Street
Jamaica, NY 11435
Business Description: The Debtor is a Single Asset Real Estate
(as defined in 11 U.S.C. Section 101(51B)).
Chapter 11 Petition Date: June 22, 2023
Court: United States Bankruptcy Court
Eastern District of New York
Case No.: 23-42198
Debtor's Counsel: Anne Penachio, Esq.
PENACHIO MALARA, LLP
245 Main Street, Suite 450
White Plains, NY 10601
Tel: 914-946-2889
Email: frank@pmlawllp.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Anderson Inniss as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's four unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/3VPNTCA/Amba_Management_Corp__nyebke-23-42198__0001.0.pdf?mcid=tGE4TAMA
AMERICAN LAND: Court OKs Cash Collateral Access Thru July 28
------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Ohio,
Western Division, authorized American Land Investments, Ltd. to use
cash collateral on an interim basis in accordance with the budget.
As previously reported by the Troubled Company Reporter, prior to
the commencement of the bankruptcy case, Minster Bank was the
Debtor's primary bank. The Debtor's obligations to Minster Bank
were evidenced several Promissory Notes including one dated
September 25, 2006, in the face principal amount of $330,000 and
Promissory Note dated as of October 1, 2009, in the face principal
amount of $50,000.
The loans evidenced by the Senior Secured Loan Documents have been
declared in default. The total principal indebtedness claimed to be
owing to Minster Bank under the Senior Secured Loan Documents, as
of the Petition Date, is approximately $561,866.
The Court said unless extended by a writing executed by the Parties
or by further stipulation or order, the Debtor's right to use cash
collateral terminates the earlier of:
(a) July 28, 2023;
(b) five business days following the Debtor's and/or the
Receiver's receipt from Minster Bank of written notice that the
Debtor is in default of the Order, which default remains uncured
during the five business day period and pursuant to which the
Debtor has not raised any dispute that it is in default;
(c) upon entry of a Court order finding that the Debtor is in
default of the Stipulation and Order;
(d) the effective date of any plan confirmed in the case;
(e) unless filed by the Debtor, in which case termination will
occur upon the filing of the motion, the date of entry of an order
dismissing the Chapter 11 case or converting the Chapter 11 case to
a Chapter 7 case, or removing the Debtor and appointing a Chapter
11 trustee or a Subchapter V Trustee or examiner or other
responsible person in the Chapter 11 case;
(f) the date of entry of an order granting relief from the
automatic stay for any purpose in respect of any of the Collateral;
and
(g) the entry of an order reversing, revoking, modifying,
amending, staying, rescinding or supplementing the Order.
Pursuant to the Supplemental Budget, the Debtor will pay an
additional $1,000 to the Subchapter V Trustee as part of the
Deposit.
Notwithstanding the grant to the Lender of any new or renewed
post-petition lien on the assets of the Debtor, the claims of the
Lender and any other creditor will be subordinate to any claim of
the Subchapter V Trustee against the funds held in the Deposit.
A copy of the Court's order and the Debtor's budget is available at
https://urlcurt.com/u?l=n1FHkH from PacerMonitor.com.
The Debtor projects $53,745 in total income and $13,275 in total
expenses for June 2023.
About American Land Investments
American Land Investments, LTD. sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. S.D. Ohio Case No. 23-30539) on
April 7, 2023, with as much as $1 million in both assets and
liabilities. Duaine Liette, sole member, signed the petition.
Judge Guy R. Humphrey oversees the case.
The Debtor tapped Paul H. Shaneyfelt, Esq., at Shaneyfelt &
Associates, LLC as legal counsel and FocusCFO as accountant.
APOSTOLIC ASSEMBLY: Case Summary & Six Unsecured Creditors
----------------------------------------------------------
Debtor: The Apostolic Assembly of Love
8042 Braniff St.
Houston, TX 77061
Business Description: The Debtor is a tax-exempt religious
organization.
Chapter 11 Petition Date: July 3, 2023
Court: United States Bankruptcy Court
Southern District of Texas
Case No.: 23-32494
Judge: Hon. Eduardo V. Rodriguez
Debtor's Counsel: Susan Tran Adams, Esq.
TRAN SINGH, LLP
2502 La Branch St.
Houston, TX 77004
Email: stran@ts-llp.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $500,000 to $1 million
The petition was signed by Louis Willie Osborne, Jr. as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's six unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/KIMEJ3A/The_Apostolic_Assembly_of_Love__txsbke-23-32494__0001.0.pdf?mcid=tGE4TAMA
ARCHDIOCESE OF AGANA: Court Closes Bankruptcy Case
--------------------------------------------------
Shane Tenorio Healy of The Guam Daily Post reports that the
Archdiocese of Agaña's bankruptcy case closed in the District
Court of Guam on Tuesday, when Chief Judge Frances
Tydingco-Gatewood issued a final decree in the Chapter 11
bankruptcy matter.
The archdiocese first filed for bankruptcy in 2019 after hundreds
of victims sought compensation for alleged sexual abuse at the
hands of clergy members, some as far back as the 1950s.
The order to close the case comes four years later, after a plan
for reorganization was approved late last 2022. According to Post
files, the victims are expected to be paid between $34 million to
$45 million in total and funds will come from a number of sources,
including cash contributions from Catholic schools, parishes,
property sales and money received from insurance companies.
Father Romeo Convocar, the apostolic administrator for the
archdiocese, said in a release that although "our bankruptcy status
is lifted," there is more work to do.
"That chapter may be closed. However, to be certain, there is much
work yet to do in our journey of bringing healing, justice and
reparation for those whom our Church gravely harmed," Convocar
stated.
He described the next steps church officials are planning.
"This includes, but is not limited to, completing the transfer of
properties and assets to the victim survivors through their
court-appointed trustee; providing tuition vouchers and cemetery
plots to their families; activating the non-monetary compensation
elements of the plan; strengthening our Child Protection and Safe
Environment protocols and policies; reorganizing the archdiocese
and rebuilding our finances," Convocar said.
He said the archdiocese must work harder to protect children from
harm of any kind.
"Thank you to all the victims, the courageous men and women who
have endured in pain and continue to bear the wounds of betrayal
and sexual abuse from members of our Church on Guam in the past. We
are deeply sorry for the agony, betrayal, deceit and coverup by
leaders of our archdiocese in the past," he said.
About Archbishop of Agana
Roman Catholic Archdiocese of Agana -- https://www.aganaarch.org/
-- is an ecclesiastical territory or diocese of the Catholic Church
in the United States. It comprises the United States dependency of
Guam. The Diocese of Agana was established on Oct. 14, 1965, as a
suffragan of the Archdiocese of San Francisco, California. It is a
tax-exempt entity (as described in 26 U.S.C. Section 501).
The Archbishop of Agana, also known as the Roman Catholic
Archdiocese of Agana, sought Chapter 11 protection (D. Guam Case
No. 19-00010) on Jan. 16, 2019. Rev. Archbishop Michael Jude
Byrnes, S.T.D., Archbishop of Agana, signed the petition. The
Archdiocese scheduled $22,962,686 in assets and $45,662,941 in
liabilities as of the bankruptcy filing.
The Hon. Frances M. Tydingco-Gatewood is the case judge.
The archdiocese tapped Elsaesser Anderson, Chtd. as bankruptcy
counsel, Deloitte & Touche, LLP as human resource consultant, and
Pacific Human Resource Services, Inc. as accountant. Blank Rome
LLP, LegalWorks Apostolate PLLC, Davis & Davis P.C., and Camacho
Calvo Law Group serve as the archdiocese's special counsels.
The Office of the U.S. Trustee appointed an official committee of
unsecured creditors on March 6, 2019. Stinson Leonard Street LLP,
The Law Offices of William Gavras, and Hiller Law, LLC serve as the
committee's bankruptcy counsel, local counsel, and special counsel,
respectively.
ATENTO SA: Enters Into Restructuring Support Agreement
------------------------------------------------------
Atento S.A. (NYSE: ATTO), one of the world's largest customer
relationship management and business process outsourcing (CRM /
BPO) service providers and an industry leader in Latin America,
announces that, following its announcement on 23 June 2023
regarding its entry into a term sheet providing for a new interim
financing of at least $30 million and a path to a comprehensive
restructuring transaction to significantly deleverage its balance
sheet, Atento has entered into a binding restructuring support
agreement with an ad hoc group of financial stakeholders
representing more than 75% of its US$39.6 million senior secured
notes due 2025, 40% of its US$500 million senior secured notes due
2026, 100% of its currently outstanding New Money 2025 Notes and
100% of its currently outstanding Junior Lien 2025 Notes.
Restructuring support agreement terms
The terms of the proposed restructuring are set out in the
restructuring term sheet appended to the restructuring support
agreement. If implemented in line with the term sheet, the
restructuring would involve the following changes to the group's
capital structure:
-- anticipated net debt leverage ratio of approximately 1.0x or
lower following completion of the restructuring;
-- the injection of new interim financing of at least $30
million through the issuance of new money notes due 2025 ("New
Money 2025 Notes") in tranches over time, the first tranche of
which for US$17 million was funded on 30 June 2023;
-- the exchange of certain senior secured notes due 2026 for new
notes due 2025 ("Junior Lien 2025 Notes") secured on a junior lien
basis to the existing 2025 notes and new money 2025 notes, and
which will be equitized into 100% of the restructured equity,
subject to dilution;
-- the provision of up to US$79 million in additional new money
investment at emergence from the proposed restructuring ("Exit New
Money"), which is expected to be in the form of preferred shares in
the restructured business; and
-- subject to modifications necessary to obtain commitments for
the Exit New Money, the lender under Atento's super senior
revolving credit facility, the providers of Atento's cross-currency
rate swaps and the holders of Atento's US$500 million senior
secured notes due 2026 receiving 5-year warrants for 10% of the
fully-diluted restructured equity at an exercise price representing
a 5x multiple on invested capital.
In the restructuring support agreement, Atento and the
participating financial stakeholders that have executed or acceded
to the restructuring support agreement have agreed, subject to the
terms and conditions of the restructuring support agreement, to
provide support for the restructuring and to facilitate the
implementation of the restructuring, including (in the case of the
participating financial stakeholders) by voting in favour of the
proposed restructuring at any creditor meetings and not taking, or
instructing any other person to take, any enforcement action or
pursuing any other available remedies against Atento or any other
group company. The restructuring support agreement also includes
certain termination events, including where the restructuring has
not completed by the agreed long-stop date.
Next steps
Consistent with its communications to all stakeholders, Atento
continues to work with each of its financial stakeholders to obtain
support for the proposed restructuring and expects additional
parties to accede to the restructuring support agreement over the
coming weeks. Execution of the restructuring support agreement was
a condition precedent to the drawdown of the first tranche of the
new interim financing, which has now occurred, and Atento now has
sufficient flexibility and financial runway to continue
negotiations with each of its other financial stakeholders and move
towards a consensual solution for the restructuring over the coming
weeks.
Atento is targeting a completion date for the proposed
restructuring as soon as possible, and likely before 1 December
2023. Such target date may, however, be subject to limited
extensions and Atento will continue working with its key financial
stakeholders with a view to completing the transaction as soon as
possible. Further announcements and updates in relation to the
restructuring will be provided in due course.
The restructuring transaction remains subject to the conditions set
out in the restructuring support agreement and the restructuring
term sheet, as well as the entry into of further definitive
agreements.
Atento is represented by Houlihan Lokey and FTI Consulting as
financial advisors and Sidley Austin and Loyens & Loeff Luxembourg,
as lead legal advisors. The ad hoc group of financial stakeholders
is represented by Rothschild & Co. as financial advisor and Hogan
Lovells as lead legal advisor. GLAS Specialist Services Limited is
acting as lock-up agent.
Stakeholders interested in discussing matters connected with the
restructuring support agreement may contact GLAS Specialist
Services Limited (lm@glas.agency), Houlihan Lokey
(ProjectAtenasHL@hl.com) or Sidley Austin
(Sidleyatento@sidley.com).
About Atento
Atento -- http://www.atento.com/-- is the largest provider of
customer relationship management and business process outsourcing
("CRM BPO") services in Latin America and one of the leading
providers worldwide. Atento is also one of the leading providers of
nearshoring CRM BPO services for companies operating in the United
States. Since 1999, the Company has developed its business model in
16 countries, employing approximately 135,000 people. Atento has
more than 400 clients, offering a wide range of CRM BPO services
through multiple channels. Atento's clients are mostly leading
multinational companies in telecommunications, banking and
financial services, healthcare, retail and public administration
sectors. Atento shares trade under the symbol ATTO on the New York
Stock Exchange (NYSE). In 2019, Atento was named one of the 25 best
multinational companies in the world and one of the best
multinationals to work for in Latin America by Great Place to
Work(R). In addition, in 2021, Everest named Atento as a "star
performer". Gartner has named the Company two consecutive years a
leader in its Magic Quadrant since 2021.
BDC GROUP: Files for Chapter 11 Bankruptcy Protection
-----------------------------------------------------
BDC Group Inc. filed for chapter 11 protection in the Northern
District of Iowa.
BDC Group, Inc., also known as Building Diverse Communications, was
incorporated on Jan. 27, 2015. Dennis Bruce of Marion, Iowa, is
BDC Group's sole owner, officer, and director.
BDC Group is a solutions-based provider that offers a wide variety
of products and services for broadband and communication
infrastructure development. BDC is committed to providing
innovative solutions that are customized to meet the needs of our
customers.
Through late May of 2023 BDC operated through three divisions:
i. Outside Plant (OSP) installed long-haul (multiple miles and
states) underground coaxial and fiber optic cable. OSP projects
were performed in multiple states with the size of the projects
being responsible for the majority of the Debtor's gross revenues.
OSP continues to operate in the Midwest with a current project to
run cable from Illinois to Nebraska.
ii. Telecom Site Development (TSD) is a general contracting
service that provides site development, new and used cell phone
shelter buildings, electrical components, and shelter generators.
Projects typically are for co-operatives, cell tower sites, and
regenerating fiber optic communication across the country.
iii. On Demand Service (ODS) offers service agreements for local
government and internet service providers in the Cedar Rapids and
Des Moines metro area. Service contracts entail the installation
of fiber optic and coaxial cable for local businesses and homes.
Dennis Bruce says in court filings that BDC is in bankruptcy to
obtain a respite from creditors, preserve its profitable Iowa TSD
and ODS divisions, continue employing dozens of people, reorganize
its operations to adapt to closing the Virginia OSP operation,
restructure its finances with a new value infusion, and exit
bankruptcy as a viable going-concern business.
BDC encountered significant negative financial impacts in the OSP
division that was managed out of an office located in the Northern
Virginia market. Due to these impacts, BDC is downsizing by
terminating operations in Virginia and is currently working to sell
nonessential assets and to bring assets that can help serve the
ongoing operations in the Midwest market. BDC Group is undergoing
a restructuring process in its operations for all divisions
creating a positive go-forward plan to continue to serve our
customers and employees in the future.
The Debtor plans to concentrate its efforts on making money
utilizing the TSD and ODS divisions in Iowa and the Chicago-Omaha
job.
BDC's primary creditor is Keystone Savings Bank that bought the
debt package from F&M Bank in November of 2022. The loan package
included a $1,100,000 term loan with 75% SBA guaranty and a
$1,500,000 revolving line of credit. Keystone also has a purchase
money security interest in a piece of equipment BDC owns in
Virginia. As of the petition date BDC owes Keystone Savings Bank
$2,957,000.
According to court filings, BDC Group 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 telephonic meeting of creditors under 11 U.S.C. Section 341(a) is
slated for July 11, 2023 at 10:00 a.m.
About BDC Group
BDC Group, Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Iowa Case No. 23-00484) on June 13,
2023. In the petition signed by Dennis Bruce, president, the
Debtor disclosed up to $50 million in both assets and liabilities.
Austin J. Peiffer, Esq., at AG & Business Legal Strategies, is the
Debtor's legal counsel.
BED BATH & BEYOND: Judge Won’t Toss $240-Million Loan
-------------------------------------------------------
Home Textiles Today reports that a group of junior bondholders
asked but failed in its efforts to have U.S. Bankruptcy Court Judge
Vincent Papalia revoke the $240 million loan Bed Bath & Beyond took
out as it filed for Chapter 11 in April.
According to Bloomberg, Bed Bath & Beyond Inc.'s bankruptcy
financing will remain intact after a motion to reconsider the
funding brought forward by a group of unsecured bondholders was
denied.
Bloomberg relates that U.S. Bankruptcy Judge Vincent Papalia during
a hearing Wednesday, June 28, 2023, found the debtor-in-possession
financing was, in fact, necessary and prevented a chaotic tumble
into Chapter 11 protection.
The bondholders argued that the loan was granted based on
inaccurate financial information, "causing Bed Bath and Beyond to
borrow more money than it needed and eroding potential repayments
for junior creditors," Reuters reported.
Bed Bath & Beyond's lawyers reportedly argued that the financing
was negotiated in good faith and gave the company the money it
needed to conduct an organized sale of its assets.
Ultimately, the judge rejected the junior bondholder's request,
"saying it would be unfair to undo the loan based on information
company officials could not have known when they asked for the
loan," Law360 reported.
The Debtors on June 15, 2023, obtained final approval to obtain DIP
financing from lenders led by Sixth Street Specialty Lending, Inc.,
the administrative agent under the DIP Credit Agreement. The DIP
Lenders have agreed to provide debtor-in-possession financing in
the form of senior secured postpetition financing on a
superpriority basis under (1) a new money single draw term loan
facility consisting of up to $40 million, and (2) a roll-up of
prepetition FILO secured obligations in the amount of $200
million.
On June 25, 2023, the Ad Hoc Group filed a motion, seeking to,
among other things, reconsider the DIP Orders.
"The DIP Facility was sized, sought, and negotiated prepetition,
before the Debtors could have known actual postpetition sales
results or the result of their sales in the day before the was
seeking, counsel to the Ad Hoc Bondholder Group stated: "[t]o be
clear Judge, it's only the [extension of the] challenge period,
that's it." See id at 42-43: 25-15. petition date. The DIP
Facility represents a collective package of compromises that
benefits the estate through, among other things, the Reserves,
while providing additional benefits to the general unsecured
creditor pool through the DIP Settlement. The DIP Facility was
arranged and negotiated in good faith and at arms'-length by the
Debtors based on the circumstances the Debtors faced at the time.
Absent the DIP Facility, the Debtors had no avenues available to
seek a going-concern transaction. The DIP Facility was secured in
the face of significant negative historical sales trends, the
cessation of virtually all trade credit extended to the Debtors,
and the need to pay payroll, rent, and other operating expenses
after the Petition Date. Further, the Debtors did not have any
available cash reserves as of the Petition Date because they were
operating under total cash dominion in accordance with the terms of
the Prepetition ABL Facility. Accordingly, the only source of cash
available to the Debtors was the DIP Facility. Without it, the
Debtors would have been forced to rely on the use of cash
collateral as their only liquidity source to sustain themselves in
these cases. The use of cash collateral itself does not come
without costs and would have carried its own uncertainties. No
responsible and well-advised debtor would file a chapter 11 case
hoping for a completely counterfactual scenario to unfold while not
assuring itself of adequate liquidity through conventional and
available debtor-in-possession financing," the Debtors said in
their objections to the Bondholders' motion.
About Bed Bath & Beyond
Bed Bath & Beyond Inc., together with its subsidiaries, is an
omnichannel retailer selling a wide assortment of merchandise in
the Home, Baby, Beauty & Wellness markets and operates under the
names Bed Bath & Beyond, buybuy BABY, and Harmon, Harmon Face
Values. The Company also operates Decorist, an online interior
design platform that provides personalized home design services.
At its peak, Bed Bath & Beyond operated the largest home furnishing
retailer in the United States with over 970 stores across all 50
states, consistently at the forefront of major home and bath
trends. Operating stores spanning the United States, Canada,
Mexico, and Puerto Rico, Bed Bath & Beyond offers everything from
bed linens to cookware to electric appliances, home organization,
baby care, and more.
Bed Bath & Beyond closed over 430 locations across the United
States and Canada before filing chapter 11 cases, implementing full
scale winddowns of their Canadian business and the Harmon branded
stores.
Left with 360 Bed Bath & Beyond and 120 buybuy BABY stores, Bed
Bath & Beyond Inc. and 73 affiliated debtors on April 23, 2023,
each filed a voluntary petition for relief under Chapter 11 of the
United States Bankruptcy Code to pursue a wind down of operations.
The cases are pending before the Honorable Vincent F. Papalia and
have requested joint administration of the cases under Bankr.
D.N.J. Lead Case No. 23-13359.
Kirkland & Ellis LLP and Cole Schotz P.C. are serving as legal
counsel, Lazard Frares & Co. LLC is serving as investment banker,
and AlixPartners LLP is serving as financial advisor. Bed Bath &
Beyond Inc. has retained Hilco Merchant Resources LLC to assist
with inventory sales. Kroll LLC is the claims agent.
BLOCKFI INC: Unsecured Creditors Seek Control of Bankruptcy Case
----------------------------------------------------------------
BlockFi Inc.'s unsecured creditors, frustrated over the crypto
lender's bankruptcy proceedings, are asking a judge to let them
propose their own wind-down plan or hand the Chapter 11 case's
reins over to an independent trustee.
The Official Committee of Unsecured Creditors filed (i) an
objection to the Debtors' Second Motion for Entry of an Order
extending their exclusive periods to file a Chapter 11 Plan; and
(ii) a cross-motion seeking entry of an Order: (a) appointing a
Chapter 11 trustee pursuant to Bankruptcy Code Section 1104(a); (b)
terminating the Debtors’ exclusivity periods pursuant to Section
1121(d); or (c) converting these cases to Chapter 7 proceedings
pursuant to Section 1112(b)(2), and (d) for other related relief.
BlockFi's Chapter 11 case isn't warranted because the company
doesn't have significant assets, has burned through money on court
costs, and has little hope of winning approval of a plan, a
creditors' committee said Tuesday, in a court filing.
"This "reorganization" case is over. The business has ceased all
operations and is now completely defunct. Extended efforts to sell
the platform (in an operating or non-operating condition) generated
zero actionable offers. Today, the estate is a proverbial "bundle
of sticks" -- cash, cryptocurrency, a modest portfolio of loans,
claims and causes of action. This has been BlockFi's reality for
quite some time," the Committee said.
"There is no balance sheet complexity. Here, unlike nearly all
other Chapter 11 cases, there is no: DIP loan; secured debt;
unsecured bond debt; utilities, vendor or supplier claims; PBGC,
pension, or other employee-benefits obligations. Besides an
incidental amount of trade debt, rejection damages, and employee
bonus claims, there are customers. The Court has already given all
the guidance necessary to allocate value among the creditors, so
this case should be a snap to wrap up and at very little cost."
"But, that is not happening. The administrative burn is a
staggering $16 million per month (on average). The Debtors continue
paying, among other things, the salaries to more than 100
individuals – many of whom, to the best of our knowledge, have
had little to do but work on their golf game. The Official
Committee has repeatedly asked the Debtors to cut the waste. All
such requests have been denied, like other forms of cooperative
interaction. Mediation has now failed and negotiations are over.
Instead of an efficient conclusion, there will be litigation."
Trustee
The Committee's counsel, Robert J. Stark, of BROWN RUDNICK LLP,
explains that the need for a Chapter 11 trustee is easily
established by the facts of the case:
* The Investigative Report reveals, in great detail, that
BlockFi (Mr. Prince in particular) perpetrated a fraud on
customers. There is, in fact, substantial overlap in what is
revealed in the Investigative Report, the Celsius Examiner's
Report, and the Voyager Board Report. The facts give rise, not
only to direct customer claims sounding in fraud, but also estate
claims sounding in (among other theories) breach of fiduciary duty
and aiding and abetting $900 million in intentional fraudulent
transfers.
* Separately, the Debtors: (i) broke their own promises to
customers by liquidating nearly $240 million in customers' crypto
(and thereby subjecting customers to enormous tax risks); (ii) used
tens of millions of it to purchase D&O insurance nearly
dollar-for-dollar; (iii) unnecessarily burned tens of millions in
administrative expense by "holding the case hostage" as leverage
for insider releases; and then (iii) violated federal law by
prematurely soliciting their plan, lying about their own conduct,
and lying about the existence and content of an Official Committee
plan (that did not exist) to scare customers into submission.
* This case is a liquidation. There is no revenue. There are
only losses and, under the Debtors' stewardship, enormous and
unnecessary monthly losses. Despite repeated requested by the
Official Committee, the Debtors refuse to stave off the losses.
The reason why is plain as day; that is their bargaining leverage.
* The Debtors and the Official Committee are at a complete
standstill. Mediation has failed. There are no negotiations.
Termination of Exclusivity
According to the Committee's attorney, all of these factors
militate in favor of terminating exclusivity:
* First, the Debtor has had more than sufficient time to
negotiation a plan. These cases, again, have lasted seven months.
During that time, the Debtors have run an M&A process (utter
failure) and filed two plans (both dead on arrival). This is now a
Chapter 11 case in name only. Meanwhile, the Debtors are
intentionally burning on average more than $16 million per month,
merely to augment defensive positions for historical management.
This is in breach of fiduciary responsibilities. Time should have
been called a long time ago.
* Second, the Debtors have not made progress in negotiations
with stakeholders. Quite the opposite. The mediation is over;
negotiations are over. One month ago, the Debtors undertook an
illegal solicitation (smear) campaign, obviously intending to
go-around the Official Committee, spreading lies directly to the
customer base (600,000+ "mom and pop" investors). When an estate
fiduciary did the exact same thing in the Boy Scouts case, that
fiduciary was sanctioned, as detailed in the Committee's 1125
Motion. This proves just how far the negotiating-dynamic has
devolved. But, to the extent there is any ambiguity, the Official
Committee laid out why it will staunchly oppose plan confirmation
in the Committee's Plan Statement.
* Third, the Debtors are assuredly using exclusivity to
pressure creditors. That is their entire point: If the Official
Committee does not relent to insider releases, the Debtors are
going to winnow estate value via continued administrative burn --
all made possible by continued exclusivity. It is wrongful.
* Fourth, there are zero unresolved case contingencies. The
case is done. There is simply nothing left to do but to litigate
over, ostensibly, insider releases. And, the Official Committee
cannot see any principled reason why this is happening.
Conversion
Mr. Stark asserts that cause for conversion of the case is
manifest:
* The estates are not generating any income and are rapidly
burning cash. This is sufficient reason, unto itself, to convert
the case. See Loop Corp. v. U.S. Trustee, 379 F.3d 511, 516 (8th
Cir. 2004)("[I]n the context of a debtor who has ceased business
operations and liquidated virtually all of its assets, any negative
cash follow -- including that resulting only from administrative
expenses -- effectively comes straight from the pockets of the
creditors. This is enough to satisfy the first element of
[continuing loss to or diminution of the estate].").
* The Debtors are defunct; they have zero capacity to
rehabilitate. This too is sufficient reason, unto itself, to
convert the case. See In re AdBrite Corp., 290 B.R. 109, 215
(Bankr. S.D.N.Y. 2003); In re Johnston, 149 B.R. 158, 161 (B.A.P.
9th Cir. 1992) (granting motion to convert debtor's Chapter 11 case
to Chapter 7 where the debtor lacked the ability to effectuate plan
of reorganization because it had no income and further delay would
prejudice creditors by eroding their position).
* The Debtors are proposing a disguised liquidation plan that
creditors are not going to support. See In re Moore Construction,
Inc., 206 B.R. 436, 438 (Bankr. N.D. Tex. 1997) (converting case
because there is "no reason to allow...further harm the creditors
while the Debtor continues its exercise in tire kicking.")
Local Counsel for the Official Committee of Unsecured Creditors:
GENOVA BURNS LLC
Daniel M. Stolz, Esq.
Donald W. Clarke, Esq.
Gregory S. Kinoian, Esq.
110 Allen Rd., Suite 304
Basking Ridge, NJ 07920
Tel: (973) 230-2095
Fax: (973) 533-1112
E-mail: DStolz@genovaburns.com
DClarke@genovaburns.com
GKinoian@genovaburns.com
Counsel for the Official Committee of Unsecured Creditors
BROWN RUDNICK LLP
Robert J. Stark, Esq.
Kenneth J. Aulet, Esq.
Bennett S. Silverberg, Esq.
Seven Times Square
New York, New York 10036
Tel: (212) 209-4800
Fax: (212) 209-4801
E-mail: rstark@brownrudnick.com
kaulet@brownrudnick.com
bsilverberg@brownrudnick.com
Stephen D. Palley, Esq.
601 Thirteenth Street, NW
Washington, DC 20005
Tel: (202) 536-1700
Fax: (202) 536-1701
E-mail: spalley@brownrudnick.com
Tristan G. Axelrod, Esq.
Sharon I. Dwoskin, Esq.
One Financial Center
Boston, MA 02111
Tel: (617) 856-8200
Fax: (617) 856-8201
E-mail: taxelrod@brownrudnick.com
sdwoskin@brownrudnick.com
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 counsel; Walkers (Bermuda) Limited as special
Bermuda counsel; Cole Schotz, P.C., as local counsel; Berkeley
Research Group, LLC as financial advisor; Moelis & Company as
investment banker; and Street Advisory Group, LLC as strategic and
communications advisor. Kroll Restructuring Administration, LLC is
the notice and claims agent.
BLUE DIAMOND: Breitburn Seeks Chapter 11 Trustee Appointment
------------------------------------------------------------
Breitburn Operating LP called for an independent trustee to take
over the Chapter 11 cases of Blue Diamond Energy, Inc. and
affiliates, Escambia Operating Co., LLC and Escambia Asset Company,
LLC.
Jonathan Lieb, Esq., one of Breitburn's attorneys, argued the
appointment of a Chapter 11 trustee is warranted given the
companies' failure to make "adequate disclosures" of their
financial operations.
Mr. Lieb cited the companies' failure to file their monthly
operating reports for April and May and to correct many of the
issues concerning their bankruptcy schedules and statements of
financial affairs, which were "grossly inadequate" when they were
filed.
"Absent a trustee, the [companies] will continue to shirk the basic
disclosure requirements of the Bankruptcy Code to the detriment of
creditors," the attorney said in a motion filed with the U.S.
Bankruptcy Court for the Southern District of Mississippi.
Mr. Lieb also expressed concern over the potential misappropriation
of Breitburn's property by the companies.
"Breitburn has serious concerns that the [companies] have used, and
continue to use, significant cash, including potentially cash
collateral, to make purchases of equipment outside the ordinary
course, to purchase property in the name of third-party insiders,
and to pay insiders," Mr. Lieb said.
Breitburn's relationship with the companies stems from its
ownership of a non-operating working interest in four wells located
in Escambia County. The wells are operated by Escambia Operating
Co. under several agreements, which govern the operation of the
entire Big Escambia Creek Field.
Breitburn can be reached through:
Jonathan M. Lieb, Esq.
Richard M. Gaal, Esq.
McDowell Knight Roedder & Sledge, LLC
Post Office Box 350
Mobile, AL 36601
Tel: 251-432-5300
Fax: 251-432-5303
Email: jlieb@mcdowellknight.com
rgaal@mcdowellknight.com
-- and --
Joseph P. Rovira, Esq.
Brandon Bell, Esq.
Hunton Andrews Kurth, LLP
600 Travis Street, Suite 4200
Houston, TX 77002
Tel: 713-220-4200
Fax: 713-220-4285
Email: josephrovira@huntonak.com
bbell@huntonak.com
About Blue Diamond Energy
Blue Diamond Energy, Inc. and affiliates, Escambia Operating Co.,
LLC and Escambia Asset Company, LLC, filed petitions for relief
under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Miss. Lead
Case No. 23-50490) on April 3, 2023. In its petition, Blue Diamond
reported $10 million to $50 million in both assets and liabilities.
Thomas Swarek, president of Blue Diamond, signed the petition.
Judge Jamie A. Wilson oversees the case.
The Debtors tapped Steve Wright Mullins, Sr., Esq. at Mullins Law
Firm and Sheehan & Ramsey, PLLC as bankruptcy counsels; and
Matthews, Cutrer & Lindsay, P.A. as accountant.
CARVER BANCORP: Incurs $4.4 Million Net Loss in FY Ended March 31
-----------------------------------------------------------------
Carver Bancorp, Inc. filed with the Securities and Exchange
Commission its Annual Report on Form 10-K disclosing a net loss of
$4.40 million on $27.7 million of total interest income for the
year ended March 31, 2023, compared to a net loss of $847,000 on
$22.86 million of total interest income for the year ended March
31, 2022.
As of March 31, 2023, the Company had $723.22 million in total
assets, $678 million in total liabilities, and $45.22 million in
total equity.
During fiscal year 2023, total cash and cash equivalents decreased
$18.4 million to $42.6 million reflecting $10.5 million and $15.3
million cash used in operating and investing activities,
respectively, partially offset by cash provided by financing
activities of $7.3 million. Net cash used in operating activities
totaled $10.5 million, which was primarily due to a $8.4 million
decrease in other liabilities related to an outstanding teller
check from the prior fiscal year that cleared during the first
quarter of the current fiscal year. Net cash used in investing
activities of $15.3 million was attributable to loan originations
and purchases, net of principal repayments and payoffs, and the
purchase of a $5.0 million bank-owned life insurance policy during
the first quarter, partially offset by investment paydowns. Net
cash provided by financing activities of $7.3 million resulted from
an increase of $35.0 million in FHLB-NY advances and other
borrowings, partially offset by a net decrease in deposits of $27.7
million.
A full-text copy of the Form 10-K is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1016178/000101617823000011/carv-20230331.htm
About Carver Bancorp
Headquartered in New York, Carver Bancorp, Inc., is the holding
company for Carver Federal Savings Bank, a federally chartered
savings bank. The Company conducts business as a unitary savings
and loan holding company, and the principal business of the Company
consists of the operation of its wholly- owned subsidiary, Carver
Federal. Carver Federal was founded in 1948 to serve
African-American communities whose residents, businesses and
institutions had limited access to mainstream financial services.
The Bank remains headquartered in Harlem, and predominantly all of
its seven branches and four stand-alone 24/7 ATM centers are
located in low- to moderate-income neighborhoods.
Carver Bancorp reported a net loss of $847,000 for the year ended
March 31, 2022, a net loss of $3.90 million for the year ended
March 31, 2021, a net loss of $5.42 million for the year ended
March 31, 2020, and a net loss of $5.94 million for the year ended
March 31, 2019.
* * *
This concludes the Troubled Company Reporter's coverage of Carver
Bancorp until facts and circumstances, if any, emerge that
demonstrate financial or operational strain or difficulty at a
level sufficient to warrant renewed coverage.
CELSIUS NETWORK: Court Wants Opinion of SEC on Token
----------------------------------------------------
Aislinn Keely of Law360 reports that a U.S. bankruptcy judge asked
securities regulators to weigh in on whether bankrupt lender
Celsius Network's native token may be a security in order to
discern how the platform's token holders should be paid out in the
Chapter 11 process.
About Celsius Network
Celsius Network LLC -- http://www.celsius.network/-- is a
financial services company that generates revenue through
cryptocurrency trading, lending, and borrowing, as well as by
engaging in proprietary trading.
Celsius helps over a million customers worldwide to find the path
towards financial independence through a compounding yield service
and instant low-cost loans accessible via a web and mobile app.
Celsius has a blockchain-based fee-free platform where membership
provides access to curated financial services that are not
available through traditional financial institutions.
The Celsius Wallet claims to be one of the only online crypto
wallets designed to allow members to use coins as collateral to get
a loan in dollars, and in the future, to lend their crypto to earn
interest on deposited coins (when they're lent out).
Crypto lenders such as Celsius boomed during the COVID-19 pandemic,
drawing depositors with high interest rates and easy access to
loans rarely offered by traditional banks. But the lenders'
business model came under scrutiny after a sharp sell-off in the
crypto market spurred by the collapse of major tokens terraUSD and
luna in May 2022.
New Jersey-based Celsius froze withdrawals in June 2022, citing
"extreme" market conditions, cutting off access to savings for
individual investors and sending tremors through the crypto
market.
The list of major crypto firms that have filed for bankruptcy
protection in 2022 now includes Celsius Network, Three Arrows
Capital and Voyager Digital.
Celsius Network, LLC and its subsidiaries sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case
No. 22-10964) on July 14, 2022. In the petition filed by CEO Alex
Mashinsky, the Debtors estimated assets and liabilities between $1
billion and $10 billion.
The Debtors tapped Kirkland & Ellis, LLP and Kirkland & Ellis
International, LLP as bankrupty counsels; Fischer (FBC & Co.) as
special counsel; Centerview Partners, LLC as investment banker; and
Alvarez & Marsal North America, LLC as financial advisor. Stretto
is the claims agent and administrative advisor.
On July 27, 2022, the U.S. Trustee appointed an official committee
of unsecured creditors. The committee tapped White & Case, LLP as
its bankruptcy counsel; Elementus Inc. as its blockchain forensics
advisor; M3 Advisory Partners, LP as its financial advisor; and
Perella Weinberg Partners, LP as its investment banker.
Shoba Pillay, Esq., is the examiner appointed in the Debtors'
Chapter 11 cases. Jenner & Block, LLP and Huron Consulting
Services, LLC serve as the examiner's legal counsel and financial
advisor, respectively.
CENTER FOR ALTERNATIVE: Has Deal on Cash Collateral Access
----------------------------------------------------------
Center for Alternative Medicine, PLLC asks the U.S. Bankruptcy
Court for authority to use cash collateral in accordance with its
agreement with CAN Capital, Inc.
The Debtor requires the use of cash collateral for funding the
reorganization process, preserving assets of the bankruptcy estate
for the benefit of all creditors, maximizing the value of the
bankruptcy estate, and enhancing the likelihood of an effective
reorganization.
As of the Petition Date, the Debtor maintained assets constituting
cash collateral in the collective sum of $216,126.
Pursuant to Proof of Claim No. 1 filed on June 20, 2023, CAN
Capital holds a security interest against the cash collateral in
the amount of $106,245 arising from the Debtor executing a Business
Loan Agreement in favor of WebBank on June 2, 2022 as consideration
for a loan in the principal amount of $134,175. On June 8, 2022,
WebBank assigned all of its right, title, and interest in and to
the Agreement to CAN Capital, which is the current holder of the
Loan.
CAN Capital perfected its security interest against the cash
collateral by and through recording a UCC Financing Statement with
the Colorado Secretary of State on June 6, 2022 at Validation
Number 20222058186.
The Debtor also files a Motion to Approve Stipulation by and
Between Colorado Department of Revenue for Use of Cash Collateral
contemporaneously therewith as the Colorado Department of Revenue
holds a first priority security interest against the cash
collateral in the amount of $3,238, pursuant to COLO.REV.STAT.
39-22- 604(7)(a). Regardless, the CAN Capital Claim is fully
secured against the cash collateral.
The Debtor will adequately protect against any diminution in the
value of CAN Capital's security interest by:
a. granting a replacement lien and security interest against
the Debtor's post-petition assets with the same priority and
validity as CAN Capital's pre-petition security interest to the
extent of the Debtor's post-petition use of the proceeds of the
cash collateral; and
b. complying with spending and operational controls including,
but not limited to, maintaining adequate insurance coverage on
personal property and expend cash collateral solely for ordinary
business expenses in accordance with Projected Weekly Revenue,
Expenses and Cash Flow for June 18, 2023 through July 15, 2023 and
Projected Monthly Revenue, Expenses and Cash Flow for June 18, 2023
through October 19, 2023.
A copy of the motion is available at https://urlcurt.com/u?l=P8CzBq
from PacerMonitor.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.
CINEWORLD GROUP: Court Confirms Bankruptcy Exit Plan
----------------------------------------------------
Jill Goldsmith of Deadline reports that Cineworld Group PLC's
bankruptcy exit plan confirmed at key hearing and attorney defends
payments to executives as stockholders are wiped out.
A bankruptcy court judge gave a green light to a reorganization
plan for Regal parent Cineworld, the key step needed for the giant
movie theater chain to emerge from bankruptcy next July 2023.
At a hearing, Judge Marvin Isgur of U.S. District Court for the
Southern District of Texas said the agreement the parties had put
together since Cineworld filed for Chapter 11 last fall was
negotiated 'at arm's length," "in good faith" and intended to
preserve jobs and capital into the future across the far-flung
business. With some details and wording still being worked out, "I
am going to confirm the plan," Isgur said.
Cineworld ran out of cash and couldn't borrow more after prolonged
Covid-related theater closures hit exhibition particularly hard.
Recovery was slow, and the company's already high debt made a reset
impossible. The restructuring will shore up its balance sheet and
provide significant additional liquidity. Specifically, it will
erase $4.53 billion of debt. It calls for a rights offering to
raise gross proceeds of $800 million, and provides $1.46 billion in
new debt financing.
Shareholders of Cineworld, which trades on the London Stock
Exchange, will be completely wiped out as the stock is delisted --
to the distress of one UK caller who dialed into the hearing and
was able to ask some questions. His line was often disturbed but
the message clear: "This is a once in a 100-years event that has to
do with people's life savings," he said. He singled out an
agreement by Cineworld's lenders, who are now its new owners, to
pay CEO Mooky Greidenger, his brother Israel, and two other top
executives a combined $35 million circa to remain at the helm
during the company's exit from bankruptcy, ensuring a smooth
transition. It's not clear who will ultimately run the company.
"Do you think that it is morally right for that to happen, and the
shareholders get nothing? Why don't you split that with the
shareholders?" the caller asked.
An attorney for the debtors objected the word 'moral' as
irrelevant.
He's "a lay person," the judge said, "What he means is 'fair and
equitable'."
The attorney said the payment would drive "direct value to the
estate" as it movies into its next phase.
Okay, but "Can you get your heads together and get the shareholders
something, some scraps?"
The attorney said that cash would never have gone to shareholders
in any case.
The exchange did prompt an explainer by Judge Isgur about who
recoups in a bankruptcy. Shareholders are always last after secured
and unsecured lenders and creditors.
"The law requires that those that have capital invested in a
business get paid prior to the holders of shares. Shareholders take
the first risk of failure of a business. That is true under the law
of every state [and] federal law of the United States...and I think
in most Western economies, but I am not absolutely certain."
In this case, there is "there's just not enough there" to pay
everyone. "Debt get pays before equity and that is what happens,
and that is what was going to happen today."
"It's not that I don't care [about shareholders]. It's not that I
don't stay up at night worrying about them. I want shareholders to
hear that directly from me," the judge said.
"This is not an attempt the steal the business form shareholders.
The business was stolen by a disease, a virus, that spread around
the world."
The Greidingers were Cineworld's biggest shareholders.
About Cineworld Group
London-based Cineworld Group PLC was founded in 1995 and is the
world's second-largest cinema chain. Cineworld operates 751 sites
with 9,000 screens in 10 countries, including the Cineworld and
Picturehouse screens in the UK and Ireland, Yes Planet in Israel,
and Regal Cinemas in the United States.
According to The Guardian, the Griedinger family, including Mooky's
brother and deputy chief executive, Israel, have struggled to
maintain control of the ailing business but have been forced to
reduce their stake from 28% in recent years. Cineworld's top five
investors include the Chinese Jangho Group at 13.8%, Polaris
Capital Management (7.82%), Aberdeen Standard Investments (4.98%)
and Aviva Investors (4.88%).
The London-listed Cineworld, which has run up debt of more than
$4.8 billion after losses soared during the pandemic, is pinning
its hopes on a meatier slate of movies in 2022 to bounce back from
a two-year lull.
Cineworld Group plc and 104 affiliates sought Chapter 11 protection
(Bankr. S.D. Texas Lead Case No. 22-90168) on Sept. 7, 2022,
estimating more than $1 billion in assets and debt. Judge Marvin
Isgur oversees the cases.
The Debtors tapped Kirkland & Ellis, LLP and Jackson Walker, LLP as
bankruptcy counsels; PJT Partners, LP as investment banker;
AlixPartners, LLP as restructuring advisor; and Ernst & Young, LLP
as tax services provider. Kroll Restructuring Administration, LLC
is the claims agent.
The U.S. Trustee for Region 7 appointed an official committee of
unsecured creditors in the Debtors' Chapter 11 cases on Sept. 23,
2022. The committee tapped Weil, Gotshal & Manges, LLP and
Pachulski Stang Ziehl & Jones, LLP as legal counsels; FTI
Consulting, Inc. as financial advisor; and Perella Weinberg
Partners, LP as investment banker.
CLEAN ENERGY: Taps Plante & Moran as Accountant
-----------------------------------------------
Clean Energy Collective, LLC seeks approval from the U.S.
Bankruptcy Court for the District of Colorado to employ Plante &
Moran, PLLC as accountant.
The Debtor needs an accountant to keep financial records; prepare
schedules, tax returns and tax-related documents, and provide
additional tax and accounting consultation services as needed.
The firm will be paid at a flat rate of $22,850 for the preparation
of the Debtor's 2022 federal income tax return, state returns and
reports, and all federal and state income tax returns and reports
for lower tiered entities in which the Debtor has ownership.
Meanwhile, the firm will be paid $225 to $550 per hour for
additional tax and accounting consultation services.
As disclosed in court filings, Plante & Moran is a "disinterested
person" pursuant to Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Brent Hendricks, CPA
Plante & Moran, PLLC
8181 East Tufts Avenue #600
Denver, CO 80237
Tel: 303-846-3327
Email: Brent.Hendricks@plantemoran.com
About Clean Energy Collective
Clean Energy Collective, LLC -- https://www.cleanenergyco.com/ --
is a clean energy company that is based in Louisville, Colo.,
serving residential, commercial and non-profit customers. It
developed a model of delivering clean power-generation through
medium-scale facilities that are collectively owned by
participating utility customers.
Clean Energy Collective filed a voluntary petition for relief under
chapter 11 of the Bankruptcy Code (Bankr. D. Colo. Case No.
20-17543) on Nov. 20, 2020. In the petition signed by Thomas M.
Jannsen, chief executive officer and chief financial officer, the
Debtor disclosed $1,870,355 in total assets and $39,998,916 in
total liabilities.
Judge Michael E. Romero oversees the case.
Wadsworth Garber Warner Conrardy, P.C. and Plante & Moran, PLLC
serve as the Debtor's legal counsel and accountant, respectively.
COMPREHENSIVE PAIN: Files Emergency Bid to Use Cash Collateral
--------------------------------------------------------------
Comprehensive Pain Solutions, PLLC, d/b/a Prizm Pain Specialists,
PLLC and Horizon Integrated Therapies asks the U.S. Bankruptcy
Court for the Eastern District of Michigan, Southern Division, for
authority to use cash collateral in an account not to exceed
$264,291 through July 30, 2023.
On the Petition Date, the Debtor, without admission, believes its
cash collateral consists of the following:
a. Cash of approximately $51,302; and
b. Accounts Receivable with a face value of approximately
$2.362 million.
The Debtor borrowed funds from Level One Bank n/k/a First Merchants
Bank pursuant to an Amended and Restated Line of Credit Loan
Agreement dated December 21,2012. First Merchants filed a UCC
financing with the State of Michigan statement against the Debtor's
assets on August 18, 2010 and continuations of that UCC financing
statement on March 20, 2015 and June 9, 2020.
The Debtor anticipates First Merchants may assert a first priority
security interest in the Debtor's cash collateral to secure
indebtedness in the approximate amount of $1.109 million. The
Debtor is confident that its post-petition operations will be
profitable and that it will be able to demonstrate its ability to
remain profitable during this bankruptcy proceeding and beyond.
As part of its request to use cash collateral, the Debtor is
requesting that the Court allow it to escrow, on a monthly basis,
$10,000 into a debtor-in-possession account earmarked to pay the
professional fees incurred by its legal counsel in connection with
the bankruptcy proceeding to the extent the fees are allowed by the
Court.
As adequate protection, the Debtor offers replacement liens in all
types and descriptions of collateral which secured First Merchants'
pre-petition liabilities and which are created, acquired or arise
after the Petition Date.
A copy of the Debtor's motion and the budget is available at
https://urlcurt.com/u?l=aT7vsi from PacerMonitor.com.
The Debtor projects total expenses, on a weekly basis, as follows:
$103,177 for the week ending July 8, 2023;
$30,862 for the week ending July 16, 2023;
$109,254 for the week ending July 23, 2023; and
$16,345 for the week ending July 30, 2023.
About Comprehensive Pain Solutions, PLLC
Comprehensive Pain Solutions, PLLC sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. E.D. Mich. Case No.
23-45664) on June 26, 2023. In the petition signed by Jeffrey M.
Rosenberg, manager, the Debtor disclosed up to $10 million in both
assets and liabilities.
Judge Maria L. Oxholm oversees the case.
Daniel J. Weiner, Esq., at Schafer and Weiner, PLLC, represents the
Debtor as legal counsel.
CREEKSIDE HMB: Christopher Hayes Named Subchapter V Trustee
-----------------------------------------------------------
The U.S. Trustee for Region 17 appointed Christopher Hayes as
Subchapter V trustee for Creekside HMB, LLC.
Mr. Hayes will be paid an hourly fee of $440 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Hayes declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Christopher Hayes
23 Railroad Avenue, #1238
Danville, CA 94526
Phone: (925) 725-4323
Email: chayestrustee@gmail.com
About Creekside HMB
Creekside HMB, LLC filed Chapter 11 petition (Bankr. N.D. Calif.
Case No. 23-40726) on June 21, 2023, with $1 million to $10 million
in both assets and liabilities. The petition was filed pro se.
Judge William J. Lafferty oversees the case.
DAVID'S BRIDAL: Gets Tentative Bid to Keep Majority Stores Open
---------------------------------------------------------------
Amelia Pollard of Bloomberg Law reports that David's Bridal LLC has
received a tentative going-concern bid that would keep more than
190 stores open, spurring optimism that the wedding dress retailer
might be able to survive bankruptcy.
The deal would also keep more than 7,000 jobs by staving off mass
store closures, lawyers for the company said in a bankruptcy court
hearing Tuesday. The bid deadline has been extended to July 3 and
a new sale hearing is scheduled for July 14, 2023.
About David's Bridal
David's Bridal, based in Conshohocken, Pa., and its affiliated
entities are international bridal and special occasion retailers.
They sell a broad assortment of bridal gowns, bridesmaid dresses,
special occasion dresses and accessories.
Then with over 300 stores, David's Bridal, Inc., and its three
affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case
No. 18-12635) on Nov. 19, 2018. The Hon. Laurie Selber Silverstein
was the case judge. Debevoise & Plimpton LLP served as the
Company's legal advisor, Evercore LLC was the financial advisor and
AlixPartners LLP was the restructuring advisor. In January 2019,
David's Bridal successfully emerged from Chapter 11 bankruptcy and
completed its financial restructuring.
With 294 stores across the United States, Canada, and United
Kingdom, David's Bridal, LLC, f/k/a David's Bridal, Inc., and five
affiliates sought Chapter 11 bankruptcy protection (Bankr. D.N.J.
Case No. 23-13131) on April 16, 2023, listing $100 million to $500
million in both estimated assets and estimated liabilities.
The Hon. Christine M. Gravelle presides over the Debtors' new
Chapter 11 cases.
Joshua A. Sussberg, P.C., Christopher T. Greco, P.C., Rachael M.
Bentley, Esq., and Alexandra Schwarzman, P.C., at Kirkland & Ellis
LLP; and Michael D. Sirota, Esq., Felice R. Yudkin, Esq., and
Rebecca W. Hollander, Esq., at Cole Schotz P.C., serve as counsel
to the Debtors in the new Chapter 11 cases. The Debtors' financial
advisor is Berkeley Research Group, LLC; investment banker is
Houlihan Lokey Capital, Inc.; liquidation consultant is Gordon
Brothers Retail Partners, LLC; and claims and noticing agent is
Omni Agent Solutions.
DE LA REINA: Case Summary & Two Unsecured Creditors
---------------------------------------------------
Debtor: De La Reina Developments Corporation
134 East Bracebridge Circle
Spring, TX 77382
Business Description: The Debtor is a Single Asset Real Estate (as
defined in 11 U.S.C. Section 101(51B)).
The Debtor owns property 134 E. Bracebridge
Circle, Spring Texas. The Debtor believes
the Property's current value is between
$1.24 million and $1.52 million.
Chapter 11 Petition Date: July 3, 2023
Court: United States Bankruptcy Court
Southern District of Texas
Case No.: 23-32488
Debtor's Counsel: Anabel King, Esq.
WAUSON KING
52 Sugar Creek Center Blvd., Suite 325
Sugar Land, TX 77478
Tel: 281-242-0303
Email: aking@w-klaw.com
Total Assets: $1,520,000
Total Liabilities: $1,607,799
The petition was signed by Juan Luis Perez Soberon as president and
director.
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/ZN2HO5Q/De_La_Reina_Developments_Corporation__txsbke-23-32488__0001.0.pdf?mcid=tGE4TAMA
DIAMOND SPORTS: JPMorgan Gets Subpoena in Chapter 11 Case
---------------------------------------------------------
Emily Lever of Law360 reports that bankrupt sports broadcaster
Diamond Sports Group LLC has subpoenaed JPMorgan to compel the bank
to testify on its relationship with Diamond Sports and Sinclair
Broadcasting Group, the publicly traded media conglomerate that is
parent to the regional sports network business.
Pursuant to Rule 2004 of the Federal Rules of Bankruptcy Procedure
and Rule 2004-1 of the Local Rules of the United States Bankruptcy
Court for the Southern District of Texas, Diamond Sports Group
served on June 24, 2023, a Rule 2004 deposition notice on JPMorgan
Chase Funding, Inc., and in May a request for production of
documents from JPMorgan.
About Diamond Sports Group
Diamond Sports Group, LLC operates as a sports marketing company.
It offers seminars, combine, speed and agility assessments,
recruiting tools, and online training sessions for sports including
football, baseball, soccer, and basketball. Diamond Sports is an
unconsolidated and independently run subsidiary of Sinclair
Broadcast Group.
Diamond Sports Group and 29 of its affiliates sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Texas Lead Case
No. 23-90116) on March 14, 2023. Diamond said it plans to
restructure its balance sheet while continuing to broadcast local
games on its portfolio of 19 networks under the Bally Sports brand
across the U.S.
In the petition filed by David F. DeVoe, Jr., as chief financial
officer and chief operating officer, Diamond Sports Group listed $1
billion to $10 billion in both assets and liabilities.
Judge Christopher M. Lopez oversees the cases.
The Debtors tapped Paul, Weiss, Rifkind, Wharton & Garrison, LLP
and Porter Hedges, LLP as bankruptcy counsels; Wilmer Cutler
Pickering Hale and Dorr, LLP as special corporate and litigation
counsel; AlixPartners, LLP as financial advisor; Moelis & Company,
LLC and LionTree Advisors, LLC as investment bankers; Deloitte Tax,
LLP as tax advisor; Deloitte Financial Advisory Services, LLP as
accountant; and Deloitte Consulting, LLP as consultant. Kroll
Restructuring Administration, LLC is the claims agent.
The U.S. Trustee for Region 7 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
The committee tapped Akin Gump Strauss Hauer & Feld LLP as counsel;
FTI Consulting, Inc. as financial advisor; and Houlihan Lokey
Capital, Inc. as investment banker.
DIGICEL GROUP: Davis Polk Advises Business on Restructuring
-----------------------------------------------------------
Davis Polk is advising Digicel Group Holdings Limited ("DGHL") and
Digicel Limited ("DL" and together with certain of its
subsidiaries, the "Company") in connection with the cross-border
restructuring of more than $4.4 billion of indebtedness.
On May 28, 2023, DGHL, its shareholder (the "Shareholder"), an ad
hoc group of DGHL noteholders (the "DGHL AHG") and an ad hoc group
of crossover holders (the "Crossover AHG") entered into a
restructuring support agreement (the "DGHL RSA"). The DGHL AHG and
Crossover AHG collectively hold over 80% of the face amount of
DGHL's approximately $640 million of outstanding notes. Among other
things, the DGHL RSA contemplates that existing noteholders will
receive, in full and final satisfaction of their claims,
approximately $183 million in cash and new secured limited recourse
notes in respect of, among other things, certain future
distributions, which will be consummated through a Bermuda scheme
of arrangement and a U.S. chapter 15 recognition proceeding.
On June 27, 2023, the (i) Company, (ii) Crossover AHG, (iii) an ad
hoc group of Digicel International Finance Limited ("DIFL") secured
lenders and noteholders (the "DIFL Secured AHG" and, together with
the Crossover AHG, the "AHGs") and (iiii) the Shareholder entered
into a restructuring support agreement (the "DL/DIFL RSA").
Together, the AHGs hold more than 78% of all of the Company's
funded indebtedness. The DL/DIFL RSA provides a pathway for the
Company to implement a comprehensive financial recapitalization
that would, together with the DGHL Restructuring, reduce DGHL's and
the Company's consolidated funded debt by approximately $1.7
billion and annual cash interest expense by approximately $120
million. The restructuring contemplated in the DL/DIFL RSA is
expected to equitize 100% of DL's senior notes (the "DL Notes") and
DIFL's subordinated notes (the "DIFL Subordinated Notes") as well
as refinance and extend the maturity of the Company's other funded
indebtedness. The DL/DIFL RSA contemplates that the Company will
implement its restructuring through an exchange offer for the DIFL
Subordinated Notes, Bermuda schemes of arrangement and U.S. chapter
15 recognition proceedings.
In addition, DIFL and certain of its subsidiaries have agreed with
the AHGs to amend DIFL's term loan B credit agreement to allow for
an aggregate principal amount of $60 million of incremental DIFL
term loan Bs, to be provided by the Crossover AHG. Additionally,
the Crossover AHG has agreed to backstop a new-money equity rights
offering of up to $110 million, which all holders of DL Notes and
DIFL Subordinated Notes will have the opportunity to participate
in.
As a Digital Operator, Digicel is in the business of delivering
powerful digital experiences 1440 minutes of each day to customers.
Through its world-class LTE and fibre networks, together with its
suite of apps spanning sports, news, local radio and podcasts and
self-care, Digicel is the only operator in its markets that can
deliver that. Serving consumer and business customers in 25 markets
in the Caribbean and Central America, its investments of over $5
billion and a commitment to its communities through its Digicel
Foundations in Haiti, Jamaica and Trinidad & Tobago have
contributed to positive outcomes for over two million people to
date.
The Davis Polk restructuring team includes partners Timothy
Graulich and Darren S. Klein, counsel Stephen D. Piraino and
associates Richard J. Steinberg, Matthew B. Masaro and Kayleigh
Yerdon. The capital markets team includes partner Michael Kaplan,
counsel Joseph S. Payne and associate Dennis Chu. The finance team
includes partner Hilary Dengel, counsel David J. Kennedy and
associate Theodore N. Batis. The litigation team includes partner
James I. McClammy, counsel Marc J. Tobak and associate Garret
Cardillo. All members of the Davis Polk team are based in the New
York office.
Davis Polk refers to Davis Polk & Wardwell LLP, a New York limited
liability partnership, and its associated entities.
About Digicel Group
Digicel Group is a mobile phone network provider operating in 33
markets across the Caribbean, Central America, and Oceania
regions.
The company is owned by the Irish billionaire Denis O'Brien, is
incorporated in Bermuda, and based in Jamaica.
As reported in the Troubled Company Reporter-Latin America on May
25, 2023, Fitch Ratings downgraded the Long-Term Issuer Default
Ratings (IDRs) of Digicel Group Holdings Limited (DGHL) and of
Digicel Limited (DL) to 'RD' from 'C'. DGHL's senior unsecured
notes and subordinated notes have been affirmed at 'C/RR5' and
'C/RR6', respectively.
On Aug. 11, 2022, the TCR-LA reported that Moody's Investors
Service confirmed Digicel Group Holdings Limited's Caa2 corporate
family rating, its Caa2-PD probability of default rating and Ca
senior unsecured ratings. Moody's also confirmed the senior
unsecured ratings of Digicel Group Two Limited, Digicel Limited and
the senior secured ratings of Digicel International Finance
Limited. Concurrently, Moody's downgraded the senior unsecured and
subordinated ratings of Digicel International Finance Limited to
Caa3 from Caa2. The outlook was changed to negative.
DIVISION SEVEN: Has Deal on Cash Collateral Access
--------------------------------------------------
Division Seven Contracting Inc., and the U.S. Internal Revenue
Service advised the U.S. Bankruptcy Court for the Eastern District
of New York that they have reached an agreement regarding the
Debtor's use of cash collateral and now desire to memorialize the
terms of this agreement into an agreed order.
The Debtor requires the use of cash collateral to operate its
business and preserve and maintain its business.
Prior to the bankruptcy filing date, the Debtor incurred
obligations to the IRS for outstanding income tax withholding and
payroll taxes which were due but unpaid.
The IRS has asserted that it holds liens on all of the Debtor's
assets, including cash collateral, to secure tax liabilities of
$34,653, $259,282 and $170,164.
The IRS consents to the use of cash collateral by the Debtor (i) in
the ordinary course of business for payment of expenses incurred,
or to be incurred in the operation of its business, (ii) the
satisfaction of the costs and expenses of administering the Chapter
11 Case, including, payment of any prepetition obligations that are
necessary to preserve the value of the Debtor's estate to the
extent approved by the Court, (iii) for Adequate Protection
Obligations, and (iv) for payment of any professional fees and
expenses, to the extent allowed in the Proceedings, provided
however, that the IRS specifically reserve and does not waive the
right to object to the allowance of any such professional fees and
expenses.
As adequate protection to secure any loss, decrease or decline in
the value of the Collateral resulting from the use, sale or lease
of the Collateral by the Debtor, the Debtor grants the IRS a
continuing post-petition security interest in all of the Debtor's
assets and all substitutions therefore which are created, acquired
and in which the Debtor obtains an interest subsequent to the
filing of the petition, provided however, that the lien does not
extend to any avoidance power recoveries available to the estate.
As additional adequate protection for any Post-Petition Loss, the
Debtor will make a payment of $2,500 dollars per month to the IRS
for the earlier of (i) three months, (ii) until a Chapter 11 Plan
is confirmed by the Court, or (iii) the case is closed.
Future payments will be made by the Debtor on or before the 15th of
each month to the IRS Office, with the first payment being due on
or before July 15, 2023.
These events constitute an "Event of Default":
a. If the Debtor fails to make any tax deposits when due, and
such nonpayment has not been cured within three business days after
notice from the IRS;
b. If the Debtor fails to make any Adequate Protection
Payments when due, and such nonpayment has not been cured within
three business days after notice from the IRS;
c. If the Debtor fails to pay any balance of post-petition
taxes due upon the filing of a tax return, and such nonpayment has
not been cured within three business days after notice from the
IRS; or
d. If the Debtor fails to file any tax returns when due (or,
as such due date may be extended) and such failure has not been
cured within ten business days after notice from the IRS.
A copy of the stipulation is available at
https://urlcurt.com/u?l=ksRJAA from PacerMonitor.com.
About Division Seven Contracting, Inc.
Division Seven Contracting, Inc. is a foundation, structure, and
building exterior contractor.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. N.Y. Case No. 23-71998) on June 5,
2023. In the petition signed by John Lima, president, the Debtor
disclosed up to $1 million in assets and up to $10 million in
liabilities.
Judge Louis A. Scarcella oversees the case.
Robert J. Spence, Esq., at Spence Law Office, P.C. represents the
Debtor as legal counsel.
ENVISTACOM LLC: Wins Cash Collateral Access Thru Sept 30
--------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Georgia,
Atlanta Division, for authority to use cash collateral on a final
basis, in accordance with the budget, with a 10% variance.
The Debtor needs the use of cash collateral to continue the orderly
liquidation of its business.
The Northern Trust Company is the Debtor's putative secured
creditor under a Master Promissory Note in the original principal
face amount of $6 million, Business Loan Agreement, and Commercial
Security Agreement, all dated as of April 20, 2022, as amended, and
a Financing Statement, File No. 038-2022-014699, filed with the
Coweta County Clerk of Superior Court on April 25, 2022. Alyssa
Carson and Alan Carson are co-borrowers under the Loan Documents.
The Debtor stipulates that, as of May 10, 2023, the Debtor was
indebted to the Bank under the Loan Documents for a loan to the
Debtor and the Carsons as follows: Principal balance outstanding of
$5 million, accrued non-default interest of $178,229 (as of May 10,
2023) at per diem interest of $1,067, plus unpaid pre-petition
attorneys' fees and expenses incurred by the Bank as provided under
the Loan Documents.
The Debtor's authority to use cash collateral will automatically
terminate for all purposes upon the soonest to occur of the
following events or conditions; provided, however, that the Debtor
will be entitled to seek emergency relief in the Bankruptcy Court
to dispute whether such Termination Event has occurred:
(i) September 30, 2023, unless the Debtor's further use of
cash collateral has been (a) extended by consent of the Bank or (b)
order of the Court under 11 U.S.C. section 363 after notice and
hearing;
(ii) the Debtor fails to comply with any material term,
condition or provision of the Final Order and fails to cure any
such default within seven days of receiving written notice thereof
(such notice to be provided simultaneously to the Committee and the
U.S. Trustee by the Bank);
(iii) a Chapter 11 trustee is appointed;
(iv) the Chapter 11 Case is converted to a Chapter 7 case or
dismissed;
(v) the Court enters an order (a) granting the Bank relief
from the automatic stay with respect to substantially all of the
Debtor's assets, or (b) prohibiting the use of cash collateral by
the Debtor;
(vi) the Debtor files a plan of reorganization under 11 U.S.C.
sections 1129 and 1124, which seeks to impair the Bank's claim or
lien with respect to the Collateral without obtaining the Bank's
prior written consent;
(vii) the Debtor files a motion or seeks to borrow monies or
obtain credit that impairs the Bank's claim or interest in the
collateral, including without limitation, by seeking to prime the
Bank's liens, without the Bank's prior written consent which
consent can be withheld in the sole and absolute discretion of the
Bank; or
(viii) the Final Order is amended, vacated, stayed, reversed or
otherwise modified without the prior written consent of the Bank.
As adequate protection, the Bank is granted valid, binding,
enforceable and automatically perfected liens on and security
interests in (i) all personal property of the Debtor that is of a
kind or nature described as Collateral in the Pre-Petition Loan
Documents, whether existing or arising prior to, on or after May
10, 2023, and (ii) all other personal property of the Debtor,
wherever located and whether created, acquired or arising prior to,
on or after May 10, 2023.
The Bank has requested adequate protection and, subject to the
Carve Out, will be entitled to an administrative priority claim
under 11 U.S.C. section 507(b) in the amount, if any, by which the
protections afforded therein for the Debtor's use, sale,
consumption or disposition of any Pre-Petition Collateral prove to
be inadequate to protect the Bank's interest in such Pre-Petition
Collateral; provided, however, that the Superpriority Claim will be
subordinated to unpaid U.S. Trustee quarterly fees and the Carve
Out.
A copy of the final order is available at
https://urlcurt.com/u?l=hYCTab from PacerMonitor.com.
About Envistacom
A group of creditors including MAG DS Corp., Amentum Services Inc.,
SteelGate LLC, Momentum Decisive Solutions USA Inc., and L3
Technologies, Inc. filed a Chapter 7 petition against Envistacom,
LLC on March 21, 2023. The petitioning creditors are represented by
Matthew Levin, Esq.
On May 10, 2023, the Chapter 7 case was converted to one under
Chapter 11 (Bankr. N.D. Ga. Case No. 23-52696). Judge Jeffery W.
Cavender oversees the case.
McDermott Will & Emery, LLP serves as the Debtor's legal counsel.
The U.S. Trustee for Region 21 appointed an official committee to
represent unsecured creditors in the Debtor's Chapter 11 case. The
committee tapped Scroggins & Williamson, P.C. as legal counsel and
Katie S. Goodman, managing partner at GGG Partners, LLC, as chief
liquidation officer.
FEDNAT HOLDING: Committee Taps MFSolomon as Special Tax Counsel
---------------------------------------------------------------
The official committee of unsecured creditors of Fednat Holding
Company and its affiliates seeks approval from the U.S. Bankruptcy
Court for the Southern District of Florida to employ MFSolomon Tax
Consulting, LLC.
The committee requires a special tax counsel to investigate the
Debtors' allocation of tax refunds and liabilities across their
consolidated tax group, and their current and potential future
NOLs. It also needs legal assistance in developing strategies to
retain the Debtors' NOLs for the benefit of unsecured creditors.
MFSolomon will be compensated at $1,075 per hour.
Michael Solomon, Esq., a partner at MFSolomon, disclosed in a court
filing that his firm is a "disinterested person" pursuant to
Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Michael F. Solomon, Esq.
MFSolomon Tax Consulting LLC
6279 Via Campo Verde
Rancho Santa Fe, CA 92067
Tel: (858) 914-3000
About Fednat Holding Company
FedNat Holding Co. -- https://www.fednat.com -- is a regional
insurance holding company in Sunrise, Fla., which controls
substantially all aspects of the insurance underwriting,
distribution and claims processes through subsidiaries and
contractual relationships with independent and general agents. Itis
not an insurance carrier and does not issue insurance policies.
Rather, FedNat provides agency, underwriting and policy holder
services to its insurance carrier clients. Its business is
comprised of two primary components: underwriting and claims
processing.
FedNat and its affiliates filed petitions for relief under
Chapter11 of the Bankruptcy Code (Bankr. S.D. Fla. Lead Case No.
22-19451) on Dec. 11, 2022. In the petition filed by its manager,
Mark Allen, FedNat reported assets between $10 million and $50
million and liabilities between $100 million and $500 million.
Judge Peter D. Russin oversees the cases.
The Debtors tapped Shane G. Ramsey, Esq., at Nelson Mullins Riley
&Scarborough, LLP as legal counsel and Aprio, LLP as tax preparer.
The U.S. Trustee for Region 21 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases. The
committee tapped Pachulski Stang Ziehl & Jones, LLP as lead
bankruptcy counsel; Bast Amron, LLP as local counsel; and
AlixPartners, LLP as financial advisor.
FORMING MACHINING: S&P Downgrades ICR to 'CCC', Outlook Negative
----------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Forming
Machining Industries Holdings LLC (FMI) to 'CCC' from 'CCC+', its
issue-level rating on the company's first-lien debt to 'CCC' from
'CCC+', and its second-lien debt to 'CC' from 'CCC-'.
The negative outlook reflects S&P's expectation that liquidity will
continue to be stressed until production rates return closer to
pre-pandemic levels and new business programs reach advanced stages
of their ramp up.
Exposure to rising interest rates and delayed recovery of the
aircraft production supply chain has resulted in FMI's weak
liquidity position. FMI's financial performance over the past year
has been constrained by elevated operating costs due to supply
chain pressures and rapid growth and interest expense that has
increased significantly due to base rate hikes. The company
reported substantial negative free cash flow during fiscal year
2022 and we forecast that improvement will be gradual. As of March
2023, FMI held minimal cash on its balance sheet, just over $5
million, and their $50 million revolver was fully utilized while we
are forecasting negative cash flow for the 2023 fiscal year. Due to
the variable-rate nature of their debt, cash interest expense has
significantly increased, amounting to just over $40 million due
during the 2023 fiscal year, with a sizable payment required during
the third quarter. S&P said, "AE Industrial Partners, FMI's
sponsor, has been very supportive with multiple equity
contributions over the past six months, and we expect their support
to continue for now. However, due to our forecasted gradual cash
flow recovery, we expect FMI's liquidity position to remain weak
until production rates return closer to pre-pandemic levels and new
business programs reach advanced stages of their ramp up."
Demand across critical end markets and new business programs will
drive revenue growth for the next year or two, allowing for credit
metric improvement. Demand has sharply improved over the past two
quarters, especially within the commercial end markets such as the
Boeing 737 program as well as multiple business jet platforms. S&P
said, "Volumes have increased sequentially during the past 12
months, and we expect that trend to continue as production rates
for the 737 will likely increase while business jet and air
transportation demand remains strong. The supply chain remains
vulnerable; however, there have been disruptions, most notably a
recent installation of a bracket related to the vertical fin of the
Boeing 737 that did not meet FAA standards upstream of FMI,
resulting in a brief stall in production and deliveries. Demand for
military platforms with FMI contact has also been robust. We expect
new programs to be strong growth drivers with multiple programs on
track with their ramp-up. The company also has attractive
opportunities within their new business pipeline that could speed
up FMI's recovery. Despite some existing production constraints, we
are forecasting top-line growth of between 12.5% and 15% in 2023
and 2024. Financial leverage will remain elevated measuring between
10x and 11x in 2023 while we expect it to fall below 10x in 2024
through EBITDA growth."
Macroeconomic pressures persist, resulting in higher operating and
interest costs. Since mid-2021, FMI has seen margin erosion caused
by higher operating costs related to supply chain disruptions and
labor pressures. There remains bottlenecks in the supply chain
resulting in some critical part inventories to become depleted
while costs to replenish such inventories have increased due to
high demand as well as part suppliers passing on their own elevated
costs. S&P said, "We have seen indications of some supply chain
challenges easing while many parts suppliers have taken measures to
minimize the impact of bottlenecks in anticipation of production
ramp-ups. We expect further erosion with EBITDA margins falling to
between 17.5% and 20% in fiscal year 2023. We expect working
capital to be a sizable use of cash as inventory turns and account
receivable receipts remain slow while the company also builds
inventories in preparation for increased production rates.
Additionally, capital requirements between $5 million and $8
million for new business opportunities will absorb cash. Due to the
company's high level of variable rate debt and the elevated rate
environment that has the potential for additional hikes, interest
expense has increased significantly leading to a higher probability
of default. We expect free operating cash flow (FOCF) for fiscal
year 2023 to be an outflow of between $5 million and $8 million and
between an outflow of $2 million and breakeven in 2024, leaving no
excess cash available for debt paydown."
The negative outlook reflects S&P's assessment of FMI's constrained
liquidity position and its expectation the company could enter into
a debt restructuring or distressed exchange within the next 12
months.
S&P could lower its rating on FMI if it believes a default or
distressed exchange appears likely within the next six months.
S&P could raise its ratings on FMI if it no longer views a
distressed exchange or restructuring as a high probability, which
would most likely occur in conjunction with a recovery in the
aircraft supply chain.
ESG credit indicators: E-2, S-5, G-3
S&P said, "Social factors are a very negative consideration in our
credit rating analysis of FMI. The overall reduction in aircraft
production due to the pandemic, and the temporary halt to
production of the Boeing 737 MAX for most of 2020 weakened the
company's credit metrics significantly, with revenue declining
about 70% at the worst point. Credit ratios will likely not fully
recover until 2024.
"Governance factors are also moderately negative, as is the case
for most rated entities owned by private-equity sponsors. We
believe the company's highly leveraged financial risk profile
points to corporate decision-making that prioritizes the interests
of the controlling owners. This also reflects the generally finite
holding periods and a focus on maximizing shareholder returns."
FTX TRADING, VOYAGER DIGITAL: Mediation Overseen by SDNY Judge
--------------------------------------------------------------
James Nani of Bloomberg Law reports that a retired New York
bankruptcy judge will mediate a bankrupt FTX Trading Ltd.
affiliate's tussle to get back $446 million of loans paid back to
Voyager Digital Ltd.
The US Bankruptcy Court for the District of Delaware on Tuesday
approved an agreement to appoint Shelley C. Chapman as a mediator
and divide the costs evenly between FTX and Voyager, which is also
in bankruptcy.
Chapman, who's a senior counsel at Willkie Farr & Gallagher LLP, is
a former judge for the US Bankruptcy Court for the Southern
District of New York.
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, 2022, 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, 2022, 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.
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."
GOLDEN DEVELOPING: Carol Fox Named Subchapter V Trustee
-------------------------------------------------------
The U.S. Trustee for Region 21 appointed Carol Fox of GlassRatner
as Subchapter V trustee for Golden Developing Business Solutions,
Inc.
Ms. Fox will be paid an hourly fee of $450 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Fox declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Carol Fox
GlassRatner
200 East Broward Blvd., Suite 1010
Fort Lauderdale, FL 33301
Tel: 954.859.5075
Email: cfox@glassratner.com
About Golden Developing
Golden Developing Business Solutions, Inc. is a health and wellness
focused holding company that owns several businesses, all of which
are centered in the pharmacy business sector. It is based in Fort
Lauderdale, Fla.
Golden Developing Business Solutions filed a petition under Chapter
11, Subchapter V of the Bankruptcy Code (Bankr. S.D. Fla. Case No.
23-14893) on June 22, 2023, with $7,798,584 in assets and
$7,631,425 in liabilities. Stavros Triant, chief executive officer,
signed the petition.
Judge Scott M. Grossman oversees the case.
David L. Merrill, Esq., at The Associates is the Debtor's legal
counsel.
GOLDEN KEY: Wins Cash Collateral Access Thru Sept 30
----------------------------------------------------
The U.S. Bankruptcy Court for the District of Maryland, Greenbelt
Division, authorized Golden Key Group, LLC to use the cash
collateral of Associated Receivables Funding, Inc. on an interim
basis to pay operating expenses for the period from July 1, 2023
through September 30, 2023.
The Debtor is permitted to use cash collateral for these purposes:
(a) maintenance and preservation of its assets;
(b) the continued operation of its businesses by payment of
its actual expenses including, but not limited to, ordinary and
necessary overhead expenses, taxes, insurance, utilities, payroll,
and other routine and necessary vendors and other expenses as
reflected in the Budget; and
(c) payment of fees owed to the Office of the United States
Trustee.
As adequate protection, AR Funding is granted replacement liens
upon and security interests in all of the properties and assets of
the Debtor: (i) only to the extent the AR Funding's cash collateral
is used by the Debtor and such use results in a diminution of the
value of its cash collateral; and (ii) with the same perfection and
priority in the postpetition collateral and proceeds thereof of the
Debtor that AR Funding held in the prepetition collateral as of the
Petition Date; provided, however, that the collateral will
expressly exclude litigation claims or other cause of action of the
estate.
Any replacement liens will at all times be subordinate to the
payment of the quarterly fees paid to the United State Trustee
pursuant to 28 U.S.C. section 1930, and to the compensation and
expense reimbursement (excluding professional fees) allowed to any
trustee appointed in the case.
The security interests granted by the Debtor in favor of AR Funding
will be deemed perfected without the necessity for the filing or
execution of documents which otherwise might be required under
non-bankruptcy law for the perfection of security interests if AR
Funding's security interests were perfected under applicable state
law before the bankruptcy filing.
In the event and to the extent that AR Funding's interest in the
Collateral is diminished as a result of the Debtor's use of the
cash collateral during the Second Interim Period, AR Funding will
be granted an administrative claim against the Debtor's bankruptcy
estate.
These events constitute an "Event of Default":
(a) Any default, violation or breach of any of the terms of
the order, including the failure of the Debtor to use the cash
collateral in strict compliance with the Order and Budget;
(b) The failure of the Debtor to file timely monthly operating
reports in the Bankruptcy Case;
(c) Conversion of the Case to a case under Chapter 7 of the
Bankruptcy Code;
(d) The appointment of a Chapter 11 trustee in the Case;
(e) The appointment of an examiner in the Case;
(f) The dismissal of the Case; or
(g) the discontinuation of the Debtor's business or the
issuance of an Order for the Debtor to discontinue its business.
A copy of the Court's order and the Debtor's budget is available at
https://urlcurt.com/u?l=Qi3VlO from PacerMonitor.com.
The Debtor projects total cash outflow, on a monthly basis, as
follows:
$3,380,889 for July 2023;
$3,261,727 for August 2023; and
$3,115,346 for September 2023.
About Golden Key Group, LLC
Golden Key Group, LLC is a professional services firm dedicated to
helping federal and commercial clients solve today's strategic,
organizational and operational challenges while addressing their
future needs. Founded in 2002, Golden Key Group's solution
offerings include Human Capital Management Support, Human Resources
Operations, Employee Training and Leadership Development,
Professional Consulting Services, Program Management Office,
Acquisition and Category Management, Analytics and Information
Technology, Executive Search Services, and Select Solutions.
The Debtor sought protection under U.S. Bankruptcy Code (Bankr. D.
Md. Case No. 23-10414) on January 20, 2023. In the petition signed
by Gretchen McCracken as CEO and managing member, the Debtor
disclosed up to $10 million in assets and up to $50 million in
liabilities.
Judge Maria Elena Chavez-Ruark oversees the case.
Paul Sweeney, Esq., at Yumkas, Vidmar, Sweeney and Mulrenin, LLC,
represents the Debtor as legal counsel.
HAYNIE TRUCKING: Taps Keith Y. Boyd P.C. as Legal Counsel
---------------------------------------------------------
Haynie Trucking, LLC seeks approval from the U.S. Bankruptcy Court
for the District of Oregon to employ Keith Y. Boyd, P.C. to handle
its Chapter 11 case.
The firm will be paid at these rates:
Keith Y. Boyd $400 per hour
Melissa A. Arnold, ACP $150 per hour
Law Clerk $200 per hour
Legal Assistants $50 to 100 per hour
In addition, the firm will receive reimbursement for out-of-pocket
expenses incurred.
The firm received from the Debtor a retainer of $30,000.
Keith Boyd, Esq., disclosed in a court filing that his firm is a
"disinterested person" pursuant to Section 101(14) of the
Bankruptcy Code.
The firm can be reached at:
Keith Y. Boyd
Keith Y. Boyd, P.C.
724 S. Central Ave., Suite 106
Medford, OR 97501
Telephone: (541) 973-2422
Fax: (541) 973-2436
Email: keith@boydlegal.net
About Haynie Trucking
Haynie Trucking provides freight transportation arrangement
services in Brookings, Ore.
Haynie Trucking filed its voluntary petition for Chapter 11
protection (Bankr. D. Ore. Case No. 23-60224) on Feb. 14, 2023,
with $1 million to $10 million in assets and $500,000 to $1 million
in liabilities. Walter Haynie, managing member, signed the
petition.
Judge Thomas M. Renn oversees the case.
Keith Y. Boyd, P.C. serves as the Debtor's legal counsel.
HENRRY DELIVERY: Taps A+ Accounting & Tax as Accountant
-------------------------------------------------------
Henrry Delivery Services, Inc. seeks approval from the U.S.
Bankruptcy Court for the Middle District of Florida to employ A+
Accounting & Tax.
The Debtor requires an accountant to prepare court-ordered reports
and amend its previously filed monthly operating reports.
A+ Accounting & Tax will be paid at these rates:
Accountant $175 per hour
Accounting Staff $100 to $50 per hour
The retainer fee is $1,500.
Akshay Dave, CPA, a partner at A+ Accounting & Tax, 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:
Akshay Dave, CPA
A+ Accounting and Tax
4002 McLane Dr.
Tampa, FL 33610
Tel: (813) 381-3809
Email: Office4002@gmail.com
About Henrry Delivery Services
Henrry Delivery Services, Inc., is a delivery company which
subcontracts to do deliveries for big-box stores.
Henrry Delivery Services sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 22-04921) on Dec.
14, 2022, with up to $500,000 in assets and up to $100,000 in
liabilities. Henrry Campos Pena, president, signed the petition.
Judge Catherine Peek McEwen oversees the case.
The Debtor tapped Buddy D. Ford, Esq., at Buddy D. Ford, P.A. as
legal counsel and A+ Accounting & Tax as accountant.
HERITAGE SPECIALTY: Court OKs Interim Cash Collateral Access
------------------------------------------------------------
Heritage Specialty Foods, LLC sought and obtained entry of an order
from the U.S. Bankruptcy Court for the District of Oregon
authorizing the use of cash collateral on an interim basis in
accordance with the budget, through July 13, 2023.
Zions Bancorporation, N.A., doing business as The Commerce Bank of
Oregon, claims a security interest in the cash collateral.
The Debtor requires the use of cash collateral to preserve the
value of its business as a going concern and to preserve and
maintain the assets of the bankruptcy estate.
As a result of operational changes driven by the COVID-19 pandemic,
and rapid expansion in 2021, the Debtor relocated to new leased
premises in 2021, which turned out to be more expensive than
anticipated due to inaccurate information provided by the Debtor's
new landlord concerning the condition of the property.
In 2022, the Debtor experienced dramatic revenue growth (to $19.5
million from $14.9 million in the previous year), resulting in
higher demands on the company's line of credit, which was already
strained from use for construction at the new leased premises. The
buildup of accounts payable, which began during the COVID years,
became truly unmanageable. By the end of 2022, the Debtor's
accounts payable had grown from $2.4 million to $3.7 million. As of
June 21, HSF's accounts payable (not including amounts due to
affiliated entities) were approximately $3.0 million with $1.8
million over 60 days outstanding.
The Debtor has a purchase-to-order business model that involves a
quick inventory turn and rapid conversion to accounts receivable.
It is also a highly seasonal business, with the company typically
earning half of its revenue in the last four months of the calendar
year. As the Debtor entered its slow season after the beginning of
2023, it became impossible to meet commitments to vendors. Also
early in the year, Commerce Bank informed HSF that it wanted to
terminate the LOC, which was set to expire on May 31, 2023.
Since Commerce Bank announced its intent to terminate the line of
credit, the Debtor has been working diligently to identify
alternative financing, reform its operations, and improve its
financial management, Commerce Bank asserts claims against the
Debtor based on the following:
a. A promissory note dated April 9, 2015, and related loan
documents (as amended from time to time) in the principal amount of
$1.6 million for the LOC. The LOC currently serves as HSF's sole
operating facility. The outstanding balance due on this loan on
June 22, 2023, was $1.4 million;
b. A promissory note dated May 25, 2017, and related loan
documents, as amended or modified, in the principal amount of
$500,000 for a term an amortizing equipment term loan. The
outstanding balance due on this loan on June 16, 2023, was
$330,397; and
c. A promissory note dated November 12, 2021, in the original
principal amount of $840,000 increased over time to the principal
amount of $1.4 million and related loan documents for an equipment
acquisition and term out facility. The outstanding balance due on
this loan on June 16, 2023, was $1.182 million.
To secure the Debtor's obligations on the various loan agreements,
Commerce Bank's predecessor-in-interest filed a Form UCC-1
financing statement on April 15, 2015 with the Oregon Secretary of
State. The Financing Statement claims a security interest in the
Debtor's inventory, chattel paper, accounts, equipment, and general
intangibles.
The only other entity that may assert an interest in the Debtor's
cash collateral is the U.S. Small Business Administration, which
filed a Form UCC-1 financing statement on June 9, 2020, therefore
would be subordinate to Commerce Bank under applicable
nonbankruptcy law.
As adequate protection, Commerce Bank is granted a continued valid,
binding, enforceable, and perfected postpetition lien on all
property of the Debtor of the same type and category in which
Commerce Bank held prepetition with the same priority as its
prepetition lien had in such property to secure an amount of
Commerce Bank's prepetition secured claim, up to the allowed
amounts of such prepetition secured claim, equal to the extent of
any diminution in the value of its prepetition collateral by reason
of the use of Cash Collateral authorized therein.
As additional adequate protection, the Debtor will make monthly
payments to Commerce Bank of interest only, calculated at the then
applicable non-default rates, based upon the outstanding principal
balance of Commerce Bank's secured claims.
The final hearing on the matter is set for July 13, 2023 at 2 p.m.
A copy of the Debtor's motion and budget is available at
https://urlcurt.com/u?l=AYzrOr from PacerMonitor.com.
A copy of the order is available at https://urlcurt.com/u?l=I8zcGd
from PacerMonitor.com.
The Debtor projects total cash expenditures, on a weekly basis, as
follows:
$274,637 for the week ending July 2, 2023;
$452,936 for the week ending July 9, 2023;
$190,018 for the week ending July 16, 2023;
$401,132 for the week ending July 23, 2023; and
$481,202 for the week ending July 30, 2023.
About Heritage Specialty Foods, LLC
Heritage Specialty Foods, LLC is a family-owned manufacturer of
small-batch, kettle-cooked foods made from high-quality fresh
ingredients. The company specializes in ready-to-eat products
including soups, chilis, chowders, entrees, sauces, and marinades.
The company's primary sales channels are local and regional retail
markets, club stores, and foodservice outlets.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Ore. Case No. 23-31368-pcm11) on June
23, 2023. In the petition signed by Shane Hendren, president and
chief executive officer, the Debtor disclosed up to $10 million in
both assets and liabilities.
Stephen Raher, Esq., at Leonard Law Group LLC, represents the
Debtor as legal counsel.
HICKORY HILLZ: Wins Cash Collateral Access Thru July 26
-------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Indiana,
Indianapolis Division, authorized Hickory Hillz BBQ, LLC to use
cash collateral on an interim basis in accordance with the budget,
with a 10% variance, through July 26, 2023.
The Debtor requires the use of cash collateral to continue its
operations.
Sysco Indianapolis, LLC, and the US Small Business Administration
extended credit to the Debtor that is secured by a blanket lien on
substantially an of its property. Sysco has priority over the SBA.
Sysco appears to be fully secured while the amount of the SBA claim
exceeds the remaining value of its collateral.
The Debtor owe the Secured Creditors in total approximately
$300,000, plus accrued and unpaid interest and other charges. The
Debtor contends the Secured Creditors have valid and enforceable
security interests and liens in all of the Debtor's assets.
The Secured Creditors will be granted replacement liens in the cash
collateral and in the post-petition property of Debtor of the same
nature and to the same extent and in the same priority held in the
cash collateral on the Petition Date. The Adequate Protection Liens
will be valid and fully perfected without any further action by any
party and without the execution or the recordation of any control
agreements, financing statements, security agreements, or other
documents. The Adequate Protection Liens will secure obligations to
the Secured Creditors to the extent that Debtor's use of the cash
collateral diminishes the amount of the Collateral held as of the
Petition Date.
Unless extended by the Court upon the written agreement of the
Debtor and the Secured Creditors, the Order and the Debtor's
authorization to use the cash collateral will immediately terminate
on the earlier to occur of:
(a) the date on which any creditor provides, via facsimile,
e-mail or overnight mail, written notice to Debtor or Debtor's
counsel, of the occurrence of an Event of Default, and the
expiration of a five business day cure period; or
(b) July 26, 2023, or at a later date as the Court orders.
These events constitute an "Event of Default":
(i) A trustee or examiner is appointed in the Chapter 11 case;
(ii) The Debtor's Chapter 11 case is converted to a Chapter 7
case or dismissed;
(iii) The Debtor fails to comply with any term of the Order,
including but not limited to its payment obligations and compliance
with the Budget;
(iv) The Debtor makes any payment not set forth in the Budget;
(v) The Debtor fails to comply with any of the adequate
protection or reporting obligations set forth therein.
A final hearing on the matter is set for July 26, 2023 at 1:30
p.m.
A copy of the order is available at https://urlcurt.com/u?l=TfqinF
from PacerMonitor.com.
About Hickory Hillz BBQ, LLC
Hickory Hillz BBQ, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Ind. Case No. 23-02554) on June
14, 2023. In the petition signed by Chad Smock, president, the
Debtor disclosed up to $100,000 in assets and up to $1 million in
liabilities.
Judge Robyn L. Moberly oversees the case.
KC Cohen, Esq., at KC Cohen, Lawyer, PC, represents the Debtor as
legal counsel.
ILLUMINE MEDSPA: Court OKs Cash Collateral Access Thru Aug 22
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida,
Orlando Division, authorized Illumine Medspa and Skincare, LLC to
use cash collateral on an interim basis, through August 22, 2023.
The Debtor is permitted to use cash collateral to pay:
(a) amounts expressly authorized by the Court, including
payments to the Subchapter V Trustee;
(b) the current and necessary expenses set forth in the
budget, with a 10% variance and
(c) additional amounts as may be expressly approved in writing
by the secured creditors, DMKA, LLC and McKesson Corporation.
As of the Petition Date, the Debtor's cash on hand was
approximately $800 and approximately $2,000 owed to the Debtor is
being withheld by Square Financial Services, Inc./Block, Inc. that
the Debtor is working to release.
The Secured Creditors will have a perfected post-petition lien
against cash collateral to the same extent and with the same
validity and priority as the prepetition lien, without the need to
file or execute any documents as may otherwise be required under
applicable non-bankruptcy law.
The Debtor will maintain insurance coverage for its property in
accordance with the obligations under all applicable loan and
security documents.
A continued hearing on the matter is set for August 22 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=1d2GUL from PacerMonitor.com.
The Debtor projects total expenses, on a weekly basis, as follows:
$13,026 for the week of July 3, 2023;
$5,926 for the week of July 10, 2023; and
$2,926 for the week of July 17, 2023.
About Illumine Medspa and Skincare, LLC
Illumine MedSpa and Skincare, LLC sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 23-01229)
on April 3, 2023. In the petition signed by managing member Myriam
Louaked, the Debtor disclosed up to $1 million in both assets and
liabilities.
Judge Tiffany P. Geyer oversees the case.
Benjamin R. Taylor, Esq., at Latham Luna Eden & Beaudine LLP,
represents the Debtor as legal counsel.
KABBAGE INC: Confirmed Plan Declared Effective June 20
------------------------------------------------------
The United States Bankruptcy Court for the District of Delaware
entered an order confirming the Amended Joint Chapter 11 Plan of
Liquidation of Kabbage, Inc. dba KServicing and its Affiliated
Debtors, and that the effective date of the Plan was June 20,
2023.
All requests for administrative expense claims must be filed with
the Court and served on the Debtors and the wind down, the claims
and noticing agent, and the U.S. Trustee by no later than July 25,
2023. Such proof of administrative expense claim must include at a
minimum:
i) the name of the applicable Debtor that is purported to be
liable for the Administrative Expense Claim and if the
Administrative Expense Claim is asserted against more than one
Debtor, the exact amount asserted to be owed by each such Debtor;
ii) the name of the holder of the Administrative Expense Claim;
iii) the asserted amount of the Administrative Expense Claim;
iv) the basis of the Administrative Expense Claim; and
v) supporting documentation for the Administrative Expense
Claim.
If you are party to an executory lease or contract that was
rejected by the plan, a proof of claim must be filed by no later
than July 20, 2023. Any such rejection damages claim not filed by
the rejected damages bar date will be forever barred and will not
be enforceable against the Debtors, the wind down estates, or their
respective property unless a proof of claim is timely filed by the
rejection damages bar date, unless otherwise expressly allowed by
the Court.
The plan and its provisions are binding on the Debtors, the wind
down estates, any holder of a claim against, or interest in, the
Debtors and such holder's respective successor and assigns, whether
or not the claim or interest of such holder is impaired under the
plan and whether or not such holder voted to accept the plan.
About Kabbage Inc.
Founded in 2010 and headquartered in Atlanta, Ga., Legacy Kabbage,
a predecessor of Kabbage Inc. (doing business as KServicing) --
http://www.kservicing.com/-- was one of the leading fintech
providers of working capital to small businesses for over a
decade.
Legacy Kabbage began as a proprietary online lending platform for
small businesses, providing loan services to over 250,000 American
small businesses, many of which were businesses that struggled to
receive adequate funding through traditional banking institutions.
From 2020-2021, the company provided and facilitated necessary
funding to small business owners through PPP loans during the
COVID-19 pandemic. The company's existing technology
infrastructure spearheaded its PPP work, which led to a total of $7
billion in loans being originated by the company.
The origination and servicing of PPP Loans and small business loans
to eligible borrowers was critical during a time of unprecedented
health and economic uncertainty brought about by the COVID-19
pandemic. On Aug. 16, 2020, much of the company's business was
sold to American Express Travel Related Services Company, Inc. As
a result of the merger, KServicing now operates in a limited
capacity as (i) a servicer and subservicer of PPP Loans, (ii) a
software services provider for lenders of PPP Loans, and (iii) a
servicer of a minor portfolio of non-PPP small business loans.
To implement the wind down of their businesses, on Oct. 3, 2022,
Kabbage, Inc. d/b/a KServicing and certain of its affiliates each
filed a voluntary petition for relief under Chapter 11 of the
United States Bankruptcy Code (Bankr. D. Del. Lead Case No.
22-10951). Judge Craig T. Goldblatt oversees the cases.
Kabbage Inc. estimated $500 million to $1 billion in assets and
debt as of the bankruptcy filing.
The Debtors tapped Weil, Gotshal & Manges, LLP as general counsel;
Richards, Layton & Finger, PA as local counsel; AlixPartners, LLC
as financial advisor; KPMG International Limited as fraud review
services provider; Jones Day, LLP as government investigations
counsel; and Marc Sullivan, managing director at Phoenix Executive
Services, LLC, as chief financial officer. Omni Agent Solutions,
Inc. is the Debtors' claims agent and administrative advisor.
Greenberg Traurig, LLP, serves as counsel to the Debtors' board of
directors.
KDC AGRIBUSINESS: $30MM DIP Loan from UMB Bank Has Interim OK
-------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware authorized
KDC Agribusiness LLC and affiliates to use cash collateral and
obtain postpetition financing, on an interim basis.
The Debtors obtained post-petition financing consisting of a
delayed draw term loan facility in the aggregate maximum principal
amount of up to $30 million, of which up to $13 million will be
advanced upon the entry of the interim order, with UMB Bank, N.A.,
as administrative agent.
Authorization to use the DIP Loan proceeds and the cash collateral
will terminate upon the earliest to occur of:
(a) September 15, 2023, the Scheduled Termination Date;
(b) the date of acceleration of any outstanding borrowings
under the DIP Facility pursuant to an Event of Default;
(c) the first business day on which the Interim Order expires
by its terms or is terminated, unless the Final Order has been
entered and become effective prior thereto;
(d) conversion of any of the Cases to a case under chapter 7
of the Bankruptcy Code unless otherwise consented to in writing by
the DIP Agent at the direction of the Lenders;
(e) dismissal of any of the Cases, unless otherwise consented
to in writing by the DIP Agent at the direction of the Lenders;
(f) the date of consummation of the sale of substantially all
assets of the Debtors; or
(g) the effective date of any Debtor's plan of reorganization
confirmed in the Cases.
As of the Petition Date, Fairless Hills and KDC AG were indebted to
the Pre-Petition Secured Bond Parties in the aggregate principal
amount of $169.145 million in respect of the Bonds, plus accrued
and unpaid interest at the default rate with respect thereto and
any additional fees, costs and expenses.
As of the Petition Date, KDC AG was indebted to the Pre-Petition
Secured Note Parties in the aggregate principal amount of $46
million in respect of the Notes.
As of the Petition Date, the Pre-Petition Secured Bond Obligations
were also fully secured, pursuant to the Pre-Petition Secured Bond
Documents, by valid, perfected, enforceable and non-avoidable
first-priority security interests and liens, granted by KDC AG to
UMB as FH Bond Trustee for the benefit of the FH Bondholders, in
all of KDC AG's right, title and interest in, to and under KDC AG's
limited liability company interests in Fairless Hills, among other
property as more fully described in the FH Pledge Agreement.
An immediate and critical need exists for the Debtors to use the
proceeds of the DIP Facility to continue to operate their
businesses, pay wages, maintain business relationships with
vendors, suppliers and distributors, and generally conduct their
business affairs so as to avoid immediate and irreparable harm to
their estates and the value of their assets and to use cash
collateral to make adequate protection payments.
As security for the DIP Obligations, the DIP Agent on behalf and
for the benefit of the DIP Secured Parties is granted valid,
binding and fully perfected security interests in and liens upon
all present and after-acquired property of the Debtors.
A final hearing on the matter is set for July 20, 2023 at 1 p.m.
A copy of the order is available at https://urlcurt.com/u?l=KhbrV5
from PacerMonitor.com.
About KDC Agribusiness LLC
KDC Agribusiness LLC is a food waste recycler company. KDC and its
affiliates sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Lead Case No. 23-10786) on June 16,
2023. In the petition signed by David Buffa, general counsel and
corporate secretary, KDC disclosed up to $500 million in both
assets and liabilities.
Judge Craig T. Goldblatt oversees the case.
The Debtors tapped John H. Knight, Esq., at Richards, Layton and
Finger, P.A. as counsel, AlixPartners, LLP as financial
restructuring advisor, Jefferies LLC as investment banker, and
Kurtzman Carson Consultants LLC as claims agent. Foley & Lardner
LLP is the Debtor's special litigation counsel.
LIVEONE INC: Incurs $10 Million Net Loss in FY Ended March 31
-------------------------------------------------------------
LiveOne, Inc. filed with the Securities and Exchange Commission its
Annual Report on Form 10-K disclosing a net loss of $10.02 million
on $99.61 million of revenue for the year ended March 31, 2023,
compared to a net loss of $43.91 million on $117.02 million of
revenue for the year ended March 31, 2022.
As of March 31, 2023, the Company had $65.89 million in total
assets, $62.07 million in total liabilities, $4.83 million in
redeemable convertible preferred stock, and a total stockholders'
deficit of $1.01 million.
Los Angeles, CA-based Macias Gini & O'Connell LLP, the Company's
auditor since 2022, issued a "going concern" qualification in its
report dated June 29, 2023, citing that the Company has suffered
recurring losses from operations, negative cash flows from
operating activities and has a net capital deficiency. These
matters raise substantial doubt about the Company's ability to
continue as a going concern.
A full-text copy of the Form 10-K is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1491419/000121390023053022/lvo-20230331.htm
About LiveOne
Headquartered in Los Angeles, California, LiveOne, Inc. (NASDAQ:
LVO) (formerly known as LiveXLive Media, Inc.) is a creator-first,
music, entertainment and technology platform focused on delivering
premium experiences and content worldwide through memberships and
live and virtual events.
LORDSTOWN MOTORS: Foxconn Fights Back at Chapter 11 Grievances
--------------------------------------------------------------
Jeff Montgomery of Law360 reports that an attorney for Foxconn took
issue Wednesday, June 28, 2023, with bankrupt Lordstown Motors
Corp. claims against the global manufacturing giant during a
case-opening Chapter 11 hearing in Delaware, questioning the
Debtor's early effort to blame Foxconn for the electric truck
startup's costly stall.
Lordstown said that it filed litigation against global technology
company Hon Hai Technology Group (TWSE: 2317; LSE:HHPD) and certain
of its affiliates, including Foxconn Ventures Pte. Ltd.
(collectively, "Foxconn"), in the United States Bankruptcy Court
for the District of Delaware. The litigation details Foxconn's
fraud and willful and consistent failure to live up to its
commercial and financial commitments to the Company. Foxconn's
actions led to material damage to the Company as well as its future
prospects.
About Lordstown Motors
Lordstown Motors Corp. -- http://www.lordstownmotors.com/-- is an
electric vehicle ("EV") OEM developing innovative light duty
commercial fleet vehicles, with the Endurance all electric pickup
truck as its first vehicle. Lordstown Motors has engineering,
research and development facilities in Farmington Hills, Michigan
and Irvine, California.
On June 27, 2023, Lordstown Motors Corp. and two affiliated debtors
filed voluntary petitions for relief under Chapter 11 of the United
States Bankruptcy Code (Bankr. D. Del. Lead Case No. 23-10831).
The cases are pending before the Honorable Mary F. Walrath, and the
Debtors have requested joint administration of the cases under Case
No. 23-10831.
Jefferies is acting as financial advisor to the Company, and White
& Case LLP is acting as legal counsel. KCC is the claims agent.
MASTERS III: Wins Cash Collateral Access Thru July 27
-----------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Florida,
West Palm Beach Division, authorized Masters III LLC to use cash
collateral on an interim basis in accordance with the budget, with
a 10% variance, through July 27, 2023.
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 are 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.
An interim hearing to consider the Debtor's continued cash
collateral access is set for August 1, 2023 at 1:30 p.m.
A copy of the court order and the Debtor's budget is available at
https://urlcurt.com/u?l=CGQpzS 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.
Judge Mindy A. Mora oversees the case.
Julianne Frank, Esq., represents the Debtor as legal counsel.
MCCONNEL SAND: Seeks Cash Collateral Access
-------------------------------------------
McConnel Sand & Stone LLC asks the U.S. Bankruptcy Court for the
Eastern District of Michigan, Western Division, for authority to
use cash collateral and provide adequate protection.
The Debtor requires the use of cash collateral as working capital
in the operation of its business in accordance with a budget. This
amount totals $169,480 for the four-week period from June 19
through July 17, 2023.
The Debtor says it possesses substantial assets which could be lost
entirely if the Debtor is unable to resume operations.
The entities that assert an interest in the cash collateral are 1st
National Bank of St. Ignace, Kapitus Capital Funding, and Blue
Vine.
The Debtor intends to provide adequate protection, to the extent of
the aggregate diminution in value of cash collateral from and after
the Petition Date, to the Lenders for the use of the cash
collateral by:
a. Maintaining the going concern value of the Debtor's
business by using the cash collateral to continue to operate the
business and administer the Chapter 11 Case; and
b. Providing to 1st National Bank of St. Ignace, Kapitus
Capital Funding & Blue Vine petition replacement lien pursuant to
11 U.S.C. section 363(p)(2) in the accounts receivable of the
Debtor, including cash generated or received by Debtor subsequent
to the Petition Date.
A copy of the Debtor's motion and budget is available at
https://urlcurt.com/u?l=i1O6NK from PacerMonitor.com.
The Debtor projects total expenses, on a weekly basis, as follows:
$43,920 for the week ending June 17, 2023;
$38,120 for the week ending June 24, 2023;
$48,320 for the week ending July 1, 2023; and
$39,120 for the week ending July 8, 2023.
About McConnel Sand & Stone LLC
McConnel Sand & Stone LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. W.D. Mich. Case No. 23-90058) on June
19, 2023. In the petition signed by Richard Jackson, owner, the
Debtor disclosed up to $50,000 in assets and up to $1 million in
liabilities.
George E. Jacobs, Esq., represents the Debtor as legal counsel.
MERIDIEN ENERGY: Taps MorrisAnderson as Financial Advisor
---------------------------------------------------------
Meridien Energy, LLC received approval from the U.S. Bankruptcy
Court for the Eastern District of Virginia to employ MorrisAnderson
& Associates, Ltd. as its financial advisor.
The Debtor requires a financial advisor to:
a. evaluate the DIP Lender Agreement, proposed orders and any
amendments thereto and advise as necessary;
b. assist with the preparation of monthly and periodic
bankruptcy reporting and advise on bankruptcy matters;
c. negotiate and communicate with creditors, advisors and other
parties to the Debtor's Chapter 11 case;
d. preparing cash flow reporting and other debtor-in-possession
(DIP) compliance matters;
e. assist with the preparation of schedules of assets and
liabilities, statement of financial affairs and other financial
reporting relating to the Debtor's Chapter 11 plan and disclosure
statement;
f. assist with the formulation of a Chapter 11 plan and sale
process;
h. performing such other functions that may be necessary in the
course of the engagement as agreed between MorrisAnderson and the
Debtor.
MorrisAnderson will be paid at these rates:
Associate Directors $310 to $350 per hour
Directors $365 to $435 per hour
Managing Directors $450 to $495 per hour
Principals $595 to $745 per hour
The retainer fee is $25,000.
Daniel Dooley, a partner at MorrisAnderson, 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:
Daniel F. Dooley
MorrisAnderson & Associates, Ltd
55 West Monroe Street Suite 2350,
Chicago, IL 60603
Tel: (312) 254-0880
Fax: (312) 727-0180
Email: ddooley@morrisanderson.com
About Meridien Energy
Meridien Energy, LLC is a full-service pipeline construction
company headquartered in New York state with division offices in
Pennsylvania, Virginia, and Florida.
Meridien Energy sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Va. Case No. 23-31377) on April 20,
2023, with up to $10 million in assets and up to $50 million in
liabilities.
Judge Keith L. Phillips oversees the case.
The Debtor tapped Brandy M. Rapp, Esq., at Whiteford, Taylor and
Preston, LLP as bankruptcy counsel; David Graham & Stubbs, LLP as
special appellate counsel; MorrisAnderson & Associates, Ltd. as
financial advisor; and Compass Advisory Partners, LLC as
restructuring advisor. John W. Teitz of Compass serves as the
Debtor's chief restructuring officer.
MICKEYS SPORTS BAR: Files for Chapter 11, Landlord Seeks Eviction
-----------------------------------------------------------------
Mickeys Sports Bar and Grill LLC filed for chapter 11 protection in
the Northern District of Texas. The Debtor elected on its
voluntary petition to proceed under Subchapter V of chapter 11 of
the Bankruptcy Code.
The Debtor runs Mickey's Sports Bar & Grill located at Grand
Prairie, TX 75052. Trova LLC, the landlord, has filed a motion for
relief from the automatic stay so that it can proceed with eviction
of the Debtor from the property. Trova is the owner of a shopping
center at 3758 S. Carrier Parkway, Grand Prairie, Texas 75052, and
the Debtor occupies Suite 116 of the shopping center.
According to Trova, the lease expired on Sept. 31, 2022, and no
amendment or addendum was ever signed by the parties. Trova filed
an eviction lawsuit on Nov. 11, 2022, in Justice Court 4-1 of
Dallas County, Texas, Cause No. JPC-22-00217-41. The County Court
at Law No. 5 entered a Final Judgment on March 31, 2023 denying
Trova's request for eviction without further findings concerning
any leasehold interest of the Debtor. On June 12, 2023, Trova
filed a second eviction lawsuit in Justice Court 4-1 of Dallas
County, Texas, Cause No. JPC-23-06262-41.
According to court filings, Mickeys Sports Bar and Grill estimates
between $500,000 and $1 million in debt to 1 to 49 creditors. The
petition states that funds will not be available to unsecured
creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
July 21, 2023 at 1:30 p.m.
About Mickeys Sports
Mickeys Sports Bar and Grill, LLC, owns Mickey's Sports Bar & Grill
located at Grand Prairie, TX 75052. On the Web:
https://www.mickeys3758.com/
Mickeys Sports Bar and Grill, LLC, filed a Chapter 11 petition
(Bankr. N.D. Tex. Case No. 23-31228) on June 12, 2023, with as much
as $50,000 in assets and $500,001 to $1 million in liabilities.
The Honorable Bankruptcy Judge Michelle V. Larson oversees the
case.
The Debtor is represented by Joyce W. Lindauer, Esq., at Joyce W.
Lindauer Attorney, PLLC.
MONITRONICS: Latham & Watkins Advises Business on Chapter 11 Plan
-----------------------------------------------------------------
Multidisciplinary team led by members of the firm's Restructuring &
Special Situations Practice represented the home security and alarm
company and its subsidiaries in fully consensual confirmation.
Monitronics International, Inc., one of the largest smart home
security and alarm monitoring companies in North America, received
confirmation by the United States Bankruptcy Court for the Southern
District of Texas of the Company's partially prepackaged Plan of
Reorganization (the Plan) following an uncontested hearing on June
26, 2023. Monitronics emerged from chapter 11 on June 30, 2023.
Monitronics's fully consensual Plan was confirmed with the
overwhelming support of its key stakeholders less than 45 days
after the commencement of the chapter 11 cases. Of those who voted,
100% of the Company's prepetition lenders and holders of
approximately 99.97% of the equity interests voted in favor of the
Plan.
The Plan, which leaves general unsecured creditors unimpaired,
allows the Company to emerge with its business intact and
substantially delevered by permanently reducing approximately
US$488 million of debt, reflecting a nearly 45% reduction of the
Company's prepetition funded debt. The Plan also provides the
Company with significant liquidity through a post-emergence exit
facility that will enhance long-term growth prospects and position
it to succeed in the highly competitive smart home and alarm
monitoring industry.
Latham & Watkins LLP advised the chapter 11 debtors with a
restructuring team led by New York partner David Hammerman, along
with Chicago partner Jason Gott, Los Angeles partner Helena
Tseregounis, New York counsel Annemarie Reilly, and associates
Jonathan Gordon, Chris Beaucage, Deniz Irgi, and Meghana
Vunnamadala. Advice was also provided on benefits matters by Los
Angeles/Orange County partner Michelle Carpenter, with associate
Jordan Barnes; on corporate matters by Austin/Houston partner David
Miller, with associates Om Pandya and Jase Burner; on finance
matters by Houston partner Catherine Ozdogan, with associates
Benjamin Gelfand and Whitley Johnson; on tax matters by New York
partner Jiyeon Lee-Lim, with associate Michael Zucker; on
litigation matters by New York partner Chris Harris, with associate
Elizabeth Morris; on mergers and acquisitions matters by
Houston/Austin partner John Greer, with associate Rachel Ratcliffe;
on data privacy matters by Houston/Austin counsel Robert Brown; and
on insurance matters by San Diego partner Drew Gardiner.
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.
MOVIA ROBOTICS: Taps Koos & Company as Accountant
-------------------------------------------------
Movia Robotics, Inc. seeks approval from the U.S. Bankruptcy Court
for the District of Connecticut to employ Koos & Company, P.C.
The Debtor requires an accountant to:
a. assess the estate's tax liability and prepare tax returns,
schedules and other documents to be filed with taxing authorities;
b. review the Debtor's record to the extent necessary to
prepare returns, schedules, estimated tax calculations and other
supporting documents; and
c. advise the Debtor and its legal counsel on issues of
federal and state tax compliance, assist in negotiation with
federal and state tax authorities, and prepare any documents in
support of negotiations.
Koos & Company will be paid at these rates:
Principal, Ken Koos $350 per hour
Licensed EA Agent, Anna Cote $175 per hour
Administrative Staff $60 per hour
Anna Cote, a partner at Koos & Company, disclosed in a court filing
that her firm is a "disinterested person" pursuant to Section
101(14) of the Bankruptcy Code.
The firm can be reached at:
Anna Cote
Koos & Company, P.C.
29 S. Main Street, Suite #216
West Hartford, CT 06107
Tel: (860) 561-5802
About Movia Robotics
Movia Robotics, Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Conn. Case No. 23-20024) on Jan. 18,
2023, with up to $10 million in both assets and liabilities.
Timothy Gifford, president of Movia Robotics, signed the petition.
Judge James J. Tancredi oversees the case.
The Debtor tapped Timothy D. Miltenberger, Esq., at Cohn Birnbaum &
Shea, P.C. as legal counsel; Supporting Strategies as
bookkeeper; and Koos & Company, P.C. as accountant.
NEO ACCOUNTING: Seeks Cash Collateral Access Thru July 31
---------------------------------------------------------
NEO Accounting & Tax Services, LLC asks the U.S. Bankruptcy Court
for the Northern District of Ohio, Eastern Division, Akron for
authority to use cash collateral to continue its operations, on
interim basis through July 31, 2023.
In February of 2017, NEO Accounting & Tax Services and Pearl Road
Real Estate purchased the assets of Lou-Ray Associates, Inc. NEO
was intended to be the operating company and purchased the
furniture, equipment, and clients of the accounting practice of
Lou-Ray for $2.304 million. Pearl was intended to be the land owner
company and purchased the office building located at 1378 Pearl
Road and two rental houses located at 1388 Pearl Road and 1392
Pearl Road for $1 million.
In order to purchase the firm and real property, Gotit Group
Brunswick bought a 15% equity position in NEO and Pearl that
provided a $400,000 down payment. The remainder of the purchase
price, loan issue costs and start up costs were paid through an SBA
loan through Key Bank and seller notes of $100,000 on the building
and $160,000 on the accounting practice. The Gotit equity
investment terms were, in hindsight, detrimental to the firm
because, although Gotit was only a 15% equity owner, any
distributions made to the Debtors' other owner Brett Mangon also
had to be paid to Gotit in equal amounts.
Also, during the purchase due diligence phase, Mangon was provide
with financial information of Lou-Ray with revenue amounts that
were significantly higher than anything NEO every realized. Mangon
was shown average annual revenue of $2.1 million. NEO never did
better than $1.7 million in any year. In addition, NEO was unaware
of the demographics of Lou-Ray's client base. Many of the business
clients were older and would soon sell their businesses. When a CPA
firm is purchased in general the purchaser can expect a 15%-20%
loss of revenue from clients leaving. NEO experienced that type of
loss as well as significant losses from clients that sold their
business shortly after NEO purchased the business. The loss of
revenue lead to the opening and use of the line of credit that is
currently at its maximum borrowing amount of $250,000.
The COVID-19 pandemic led to further loss of clients due to closure
of many restaurant clients and other clients that simply could not
continue in business through the pandemic. NEO obtained an EIDL
loan that it was used to pay down part of the original SBA loan
with Key Bank ($716,216), buy out Gotit's equity position
($600,000), and fund operations during the pandemic. NEO's annual
revenue has stabilized at around $1.2M to $1.3M per year. However,
that revenue is simply not enough to cover monthly debt service
costs of almost $45,000 per month as well as cover costs of
operations such as wages, software costs, etc.
The Debtor entered into a credit agreement with the KeyBank
National Association. The Debtor executed a promissory note and
security agreement with SBA on February 9, 2017, under which the
Debtor borrowed approximately $3.304 million from Key. The Term
Loan balance currently is $1.8 million.
The Debtor also entered into a second credit agreement with Key.
The Debtor executed a promissory note and security agreement with
Key on or about April 16, 2022, under which the Debtor borrowed
approximately $250,000 from Key. The Line of Credit Balance is
currently $250,000.
The Debtor also entered into a credit agreement with the U.S. Small
Business Administration. The Debtor executed a promissory note and
security agreement with the SBA on May 27, 2020. The debt to the
SBA was increased via modification to $500,000 on July 13, 2021,
and again increased via modification on or about December 15, 2021,
to $2 million.
The EIDL Loan balance is currently approximately $2 million.
The Lenders' interests in cash collateral is adequately protected.
Such adequate protection will be provided to the Lenders through
the preservation of the Debtor's value as a going concern.
A copy of the Debtor's motion and budget is available at
https://urlcurt.com/u?l=bfKMSz from PacerMonitor.com.
The Debtor projects total expenses, on a monthly basis, as
follows:
$27,326 for June 2023;
$15,526 for July 2023;
$12,726 for August 2023;
$38,063 for September 2023;
$15,976 for October 2023;
$13,526 for November 2023; and
$13,063 for December 2023.
About NEO Accounting & Tax Services LLC
NEO Accounting & Tax Services LLC sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. N.D. Ohio Lead Case No.
23-50868) on June 27, 2023. In the petition signed by Brett J.
Mangon, managing member, the Neo disclosed $1,255,817 in total
assets and $4,188,118 in total liabilities.
Judge Alan M. Koschik oversees the case.
Anthony J. DeGirolamo, Esq., at Anthony J. DeGirolamo, Attorney at
Law, represents the Debtor as legal counsel.
NETFOR INC: Deborah Caruso Named Subchapter V Trustee
-----------------------------------------------------
The U.S. Trustee for Region 10 appointed Deborah Caruso, Esq., at
Rubin & Levin as Subchapter V trustee for Netfor, Inc.
The Subchapter V trustee can be reached at:
Deborah J. Caruso, Esq.
Rubin & Levin
135 N. Pennsylvania St., Suite 1400
Indianapolis, IN 46204
Phone: (317) 860-2928
Email: dcaruso@rubin-levin.net
About Netfor Inc.
Netfor, Inc. is a BPO company in Fishers, Ind. The company's help
desk, call center, and fulfillment services round out its ability
to solve tech problems for its clients.
Netfor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. S.D. Ind. Case No. 23-02666) on June 22,
2023, with $1 million to $10 million in assets and $500,000 to $1
million in liabilities. Jeffrey D. Medley, president and chief
executive officer, signed the petition.
Judge Jeffrey J. Graham oversees the case.
KC Cohen, Esq., at KC Cohen, Lawyer, PC is the Debtor's legal
counsel.
NEYOWS OF ATLANTA: Files Emergency Bid to Use Cash Collateral
-------------------------------------------------------------
Neyows of Atlanta, LLC asks the U.S. Bankruptcy Court for the
Northern District of Georgia, Rome Division, for authority to use
cash collateral on an emergency basis to continue its operations in
accordance with the proposed budget.
Tia Pierre, Tahj Pierre, and Tre Pierre are equal members of the
Debtor. Their restaurant initially started off as a franchise and
had to rebrand due to the franchise's inability to produce
deliverables. The restaurant rebranded about 9 months ago which
initially caused a loss in customer base, along with extra expenses
including buying new signage, creating new menus, and buying new
uniforms. The restaurant suffered financial losses during these
months, which caused bills to become delinquent.
As a result of the financial losses, the Debtor was unable to
fulfill its lease obligation to its landlord for three months prior
to filing the case. The landlord had initiated a dispossessory
action against Debtor and eviction was imminent.
The Debtor is a borrower with Arsenal Funding on a loan with a
balance of $15,500. Arsenal may assert a security interest in the
Debtor's tangible and intangible personal property.
The Debtor also is a borrower with Atlanta Development Authority
with a balance of $46,500 that asserts a security interest in the
Debtor's tangible and intangible personal property as evidenced by
UCC Financing Statement No. 060-2022-003085 filed with the Fulton
County, Georgia Clerk of Superior Court on May 18, 2022.
The Debtor also is a borrower with US Foods with a balance of
$18,000 that asserts a security interest in the Debtor's tangible
and intangible personal property as evidenced by UCC Financing
Statement No. 056-2022-002129 filed with the Fayette County,
Georgia Clerk of Superior Court on July 28, 2022.
The Debtor is a borrower with Elevate Funding on a loan with a
balance of $37,609. Elevate may assert a security interest in the
Debtor's tangible and intangible personal property.
To the extent that any interest that the Lenders may have in the
cash collateral is diminished, the Debtor proposes to grant the
Lenders a replacement lien in post-petition collateral of the same
kind, extent, and priority as the liens existing pre-petition,
except that the Adequate Protection Lien will not extend to the
proceeds of any avoidance actions received by Debtor or the estate
pursuant to chapter 5 of the Bankruptcy Code.
A copy of the Debtor's motion and budget is available at
https://urlcurt.com/u?l=2et8hv from PacerMonitor.com.
The Debtor projects total expenses, on a weekly basis, as follows:
$31,798 for the week ending June 30, 2023;
$22,278 for the week ending July 7, 2023;
$11,108 for the week ending July 14, 2023;
$5,840 for the week ending July 21, 2023; and
$31,798 for the week ending July 28, 2023.
About Neyows of Atlanta, LLC
Neyows of Atlanta, LLC is a full-service restaurant with creole
cuisine that is open six days a week. The Debtor sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case.
23-40906) on June 22, 2023. In the petition signed by Tre Pierre,
chief executive officer, the Debtor disclosed up to $500,000 in
both assets and liabilities.
William Rountree, Esq., at Rountree, Leitman, Klein & Geer, LLC,
represents the Debtor as legal counsel.
OKAYSOU CORP: Seeks Cash Collateral Access
------------------------------------------
Okaysou Corporation asks the U.S. Bankruptcy Court for the Central
District of California, Riverside Division, for authority to use
cash collateral and require Amazon Services, LLC or any other
subsidiary of Amazon.com, Inc. to provide the Debtor's chief
restructuring officer with the Debtor's seller's account
credentials and to turn over the funds accumulated in the Debtor's
Amazon Account to the Debtor.
The cash collateral consists of the Debtor's assets, receivables,
and any other property. There is a security interest on the
Property held by Amazon Capital Services, Inc. by virtue of a
secured loan agreement in the original amount of $900,000. The
servicing payments on that loan are $80,381. The Debtor estimates
that the outstanding balance at this time is around $600,000. The
Debtor proposes to continue making the $80,381 per month payments
on the Security Agreement throughout the use of the cash
collateral.
The Debtor seeks to use ACS's cash collateral and seeks to continue
making payments under the Security Agreement, without any prejudice
to its right to propose an alternative treatment of the claim in
its Chapter 11 Plan of Reorganization.
Prior to the filing of the case, the Debtor was facing a patent
infringement lawsuit from Arovast Corporation related to the design
of its air purifiers. The Debtor was also facing threat of supply
disruptions from its China based supplier. The Debtor's Chinese
partner Fudong Cao (and insider) also had access and control of the
Debtor's Amazon account. Cao was in control of the Amazon account
master password. It became likely that at some point the Debtor's
supply of goods may be cut off and Cao may cut off access to the
Debtor's funds and proceeds of the sale.
The Debtor's plan was to enter chapter 11, liquidate its inventory
and pay back its creditors in orderly fashion. Since filing for
Chapter 11 in April, the Debtor has not used its cash collateral as
it engaged in negotiations with ACS for use of cash collateral.
However, these negotiations have stalled, forcing the Debtor to
seek court intervention for use of its cash collateral.
The Debtor' operating expenses are fairly modest compared to its
projected sales and revenues to be generated. The overall value of
the estate will increase or at least remain stable through this
usage, leaving secured creditors interests adequately protected.
As additional adequate protection, the Debtor will include the
following provision in the cash collateral order:
1. The Debtors will provide ACS all interim statements and
operating reports required to be submitted to the Office of the
United States Trustee, within 21 days after the end of each monthly
period after the Petition Date.
2. The Debtors will make adequate protection payments to ACS,
pursuant to 11 U.S.C. section 362(d)(3) in the amount of $80,381
which equals to its current contractual payment to ACS.
3. The Debtor will continue maintaining its general commercial
insurance.
4. ACS's interest will be adequately protected by the
maintenance and preservation of the cash collateral that is already
stored in Amazon warehouses.
A copy of the motion is available at https://urlcurt.com/u?l=QVMu0A
from PacerMonitor.com.
About Okaysou Corporation
Okaysou Corporation is engaged in e-commerce sale of air purifiers
and accessories. Most of Okaysou's sales are through Amazon.com and
its websites that are managed though Shopify.com.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 23-11535) on April 17,
2023. In the petition signed by Chief Executive Officer Hao Ma, the
Debtor disclosed up to $1 million in assets and up to $10 million
in liabilities.
Vahe Khojayan, Esq., at YK LAW, LLP, represents the Debtor as legal
counsel.
ONORATI CONSTRUCTION: Seeks Cash Collateral Access
--------------------------------------------------
Onorati Construction Co., Inc. asks the U.S. Bankruptcy Court for
the District of New Jersey for authority to use cash collateral to
preserve its assets so as to maintain and maximize the value of the
collateral for the benefit of all parties-in-interest.
The Debtor entered into a loan agreement with Signature Financial
dba Industrial Finance, Inc. The principal loan amount was for
$250,000; payable beginning on April 8, 2019, and on each and every
month thereafter until April 2024. The remaining balance on the
loan is approximately $58,897. Monthly payments of $4,396 are
current. There is one year left on the loan.
Flagstar Bank bought Industrial Finance, which has a first priority
security interest and lien in certain of Onorati's equipment.
However, pursuant to a judgment lien search as of May 19, 2023,
Industrial Finance did not file a UCC-1 Financing Statement. Paul
S. Onorati, the President of the Debtor, also executed a guaranty
to Industrial for the payment of $303,000. Industrial Finance does
not have a lien on cash, cash accounts or accounts receivable.
On December 6, 2021, Onorati entered into a Promissory Note and
Security Agreement with Foley, Incorporated in the amount of
$120,732 for a Caterpillar AP1055B, payable beginning on January
10, 2022, and on the tenth of each and every month thereafter until
the tenth day December 2022, with interest payments in arrears
based on an annual rate equal to 1.5% and each monthly payment is
$10,116. The entire unpaid principal amount of $120,732 was due and
payable on December 31, 2022.
To secure payment of the Note, the Debtor executed and delivered a
Security Agreement on December 6, 2021. This Security Agreement
gave Foley a security interest in the Equipment.
To further secure the Note, Mr. Onorati endorsed the Note and
agreed that upon any default, any execution of the Note may be
immediately levied upon any real or personal property of Mr.
Onorati's. The estimated current value of the Equipment is
$45,000.
The Debtor executed and delivered to the U.S. Small Business
Administration a note on September 10, 2020 in the principal amount
of $150,000, payable beginning on November 10, 2022, and on each
and every month thereafter until the tenth day of September 2050,
with interest payments in arrears based on an annual rate equal to
3.75% per annum and monthly payments of $731. This was an Economic
Injury Disaster Loan.
The loan documents include a collateral clause in case of default,
granting the SBA a security interest in the collateral -- all
tangible and intangible personal property. Its collateral includes
but is not limited to the Debtor's cash, cash equivalents and
accounts receivable. Mr. Onorati personally unconditionally
guaranteed the note.
The value of the collateral securing the SBA is estimated to be
$239,000. The Debtor owes the SBA $2,099,368, however, the value of
the collateral securing the SBA loan is $239,000. To adequately
protect the SBA, the Debtor proposes to amortize $239,000 over 30
years at 5% which is a monthly payment of $1,283 so as to allow the
Debtor to utilize cash collateral.
On December 6, 2021, in connection with the Loan, the Debtor and
Mr. Onorati executed and delivered to the SBA an Amended Loan
Authorization and Agreement. Pursuant to the LA&A, the principal
was increased to $1.6 million.
The other terms and conditions remained the same as the original
Loan.
On March 4, 2021, in connection with the Loan, the Debtor and Mr.
Onorati executed and delivered to SBA a request to modification to
the Loan. Pursuant to the request, the principal was increased to
$2,000,000. The monthly payment is $9,792.
The other terms and conditions remain the same as the original
Loan.
The entire unpaid principal amount of the Loan is due and payable
on September 10, 2050.
Ally Auto holds a purchase money security interest in the Debtor's
2022 RAM 2500 pickup truck. The value of the truck is approximately
$53,000. Ally Auto is owed approximately $49,860. The Alley Auto
loan will continue to be paid in the ordinary course of business
based on its contract terms.
As of June 19, 2020, Accredited Surety & Casualty Company, Inc.
filed a UCC-1 Financing Statement with a blanket lien on all of
Onorati's assets. Bondex Insurance Company is an additional secured
party in connection with this UCC-1 filing. Bondex is owed
approximately $5,938. Bondex will continue to be paid in the
ordinary course of business based upon contract terms.
On October 6, 2020, CAT Financial and the Debtor entered into an
automobile loan agreement. CAT Financial holds a UCC-1 Financing
Statement. The value of the collateral secured by the loan is
approximately $300,000. CAT Financial holds a claim in the
approximate amount of $202,576. CAT will be paid in the ordinary
course of business in accordance with its contract terms.
On October 20, 2018, Onorati and Ford Credit entered into an
automobile loan agreement. The value of the collateral covered by
the loan is approximately $30,000. Ford Credit holds a claim in the
amount of $5,825. Ford Credit will be paid in the ordinary course
of business in accordance with its contract terms.
On May 20, 2023, Onorati and GM Financial entered into an
automobile lease for 2023 Chevrolet 1500 pickup truck. The lease
matured in December 2022 and there is a pending loan from the
dealer. The value of the collateral is approximately $62,296. GM
Financial holds a claim in the amount of $56,527. GM Financial will
be paid in the ordinary course of business in accordance with its
contract terms.
The SBA will be adequately protected during the pendency of the
Debtor's bankruptcy case. The Debtor's equipment and vehicles are
insured and maintained. The Debtor proposes to make adequate
protection payments to protect the SBA based upon the "value of the
secured creditor's allowed secured claim; that is, the amount of
the secured creditor's claim up to the value of the collateral upon
which the secured creditor has a lien as of the relevant valuation
date. The Debtor opines the value to be $239,000. The adequate
protection payment of $1,283 to the SBA will adequately protect it.
Industrial Finance, Foley, Bondex Insurance, Caterpillar Financial
Services Corporation, Ford Credit and GM Financial hold security
interests in certain collateral that are purchase money security
interests and as such, "prime" the SBA loan. Moreover, the Priming
Lien Creditors do not have a lien of the Debtor's cash collateral.
Thus, after excluding the Priming lien Creditors collateral, the
Debtor opines that the value of the SBA's "floor to ceiling, wall
to wall" lien is approximately $239,000. Thus, the SBA enjoys a
first priority lien on collateral valued at $239,000. Based on the
SBA's collateral value of $239,000, the Debtor proposes to pay an
interest only adequate protection payment of $1,283. Interest is
calculated at 5% based upon a 30-year amortization. Further, the
SBA is protected since the Debtor is maintaining its collateral in
good form and the collateral is secured. The SBA will also receive
a replacement lien post-petition on the value of its pre-petition
collateral.
A copy of the motion is available at https://urlcurt.com/u?l=hCn21I
from PacerMonitor.com.
About Onorati Construction Co., Inc.
Onorati Construction Co., Inc. specializes in paving construction
of commercial and residential properties. The Debtor sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.
N.J. Case No. 23-15349) on June 21, 2023. In the petition signed by
Paul S. Onorati as president, the Debtor disclosed $2,088,273 in
assets and $4,542,351 in liabilities.
ORION TECHNOLOGIES: Court OKs Interim Cash Collateral Access
------------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida
authorized Orion Technologies LLC to use cash collateral on an
interim basis in accordance with the budget, with a 10% variance,
pending a further hearing set for July 12, 2023 at 11:30 a.m.
The Debtor is authorized to provide adequate protection to Penta
Orion, LLC, Seth Ellis, and Phoenix Mecano, Inc. pursuant to the
terms and conditions of the Interim Order.
As adequate protection with respect to the Alleged Secured Parties'
alleged interests in the Cash Collateral, the Alleged Secured
Parties are granted a replacement lien in and upon all of the
categories and types of collateral in which they allegedly held a
security interest and lien as of the Petition Date to the same
extent, validity, and priority that they allegedly held as of the
Petition Date.
The Debtor will maintain insurance coverage for the Collateral.
A copy of the Court's order and the Debtor's budget is available at
https://urlcurt.com/u?l=hfcpNf from PacerMonitor.com.
The Debtor projects $784,976 in total revenue and $683,007 in total
expenses for July 2023.
About Orion Technologies
Orion Technologies, LLC sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. M.D. Fla. Case No. 23-01867) on May 17,
2023, with $2,047,840 in assets and $20,342,885 in liabilities.
Judge Tiffany P. Geyer oversees the case.
James C. Moon, Esq., at Melano Budwick, P.A. is the Debtor's legal
counsel.
OXBOW PROPERTIES: Beverly Brister Named Subchapter V Trustee
------------------------------------------------------------
The Acting U.S. Trustee for Region 13 appointed Beverly Brister,
Esq., a practicing attorney in Benton, Ark., as Subchapter V
trustee for Oxbow Properties, LLC.
Ms. Brister will be paid an hourly fee of $425 for her services as
Subchapter V trustee. Should travel be required outside of Saline
or Pulaski Counties, the Subchapter V trustee will seek a
compensation rate of $100 per hour for actual travel time
incurred.
Ms. Brister declared that she is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Beverly I. Brister, Esq.
Attorney at Law
212 W. Sevier
Benton, AR 72015
Phone: 501-778-2100
Email: bibristerlaw@gmail.com
About Oxbow Properties
Oxbow Properties, LLC owns equitable interest in a property located
at 4589 HWY 82, Lake Village, Ark., also known as The Osbow. The
current value of the Debtor's interest is $1.2 million.
Oxbow Properties filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. E.D. Ark. Case No. 23-11932) on June
25, 2023, with $1,240,950 in assets and $10,499 in liabilities.
William Shelton, member, signed the petition.
Judge Phyllis M. Jones oversees the case.
Vanessa Cash Adams, Esq., at AR Law Partners, PLLC is the Debtor's
counsel.
PACIFIC GREEN: Incurs $11.8 Million Net Loss in FY Ended March 31
-----------------------------------------------------------------
Pacific Green Technologies Inc. filed with the Securities and
Exchange Commission its Annual Report on Form 10-K disclosing a net
loss of $11.80 million on $7.64 million of total revenues for the
year ended March 31, 2023, compared to a net loss of $10.75 million
on $15.44 million of total revenues for the year ended March 31,
2022.
As of March 31, 2023, the Company had $30.57 million in total
assets, $15.75 million in total liabilities, and $14.81 million in
total equity.
A full-text copy of the Form 10-K is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1553404/000121390023052925/f10k2023_pacificgreen.htm
About Pacific Green Technologies
Pacific Green Technologies, Inc. is focused on addressing the
world's need for cleaner and more sustainable energy. The Company
offers Battery Energy Storage Systems and Concentrated Solar Power
energy solutions to compliment its marine environmental
technologies division.
Pacific Green reported a net loss of $10.75 million for the year
ended March 31, 2022, compared to a net loss of $1.81 million for
the year ended March 31, 2021, and a net loss of $10.38 million for
the year ended March 31, 2020.
PACIFICA CMFM: Files Emergency Bid to Use Cash Collateral
---------------------------------------------------------
Pacifica CMFM Group LLC and Centric FM Solutions, Inc. ask the U.S.
Bankruptcy Court for the Eastern District of New York for authority
to use cash collateral and provide adequate protection.
The Debtors require the use of cash collateral to continue
operating their Businesses in the ordinary course.
The Debtors believe they have sufficient present business and
opportunities for future business to fund a plan for reorganization
and emerge from the Chapter 11 process successfully. However, the
bankruptcy filing was done on an emergency basis and emergent
relief is necessary in order to protect the value of the businesses
as going-concerns.
The Debtors owe the United States Small Business Administration
$1.775 million in connection with various prepetition loans. As
collateral security for the Secured Loans, though no final security
analysis has been made, the Debtors believe the SBA holds valid,
perfected and enforceable interests in all of the Debtors' assets,
including, among other things, all accounts receivables and
proceeds and products thereform, including any and all "cash
collateral" as the term is defined in section 363(a) of the
Bankruptcy Code. In addition, the Debtors have a line of credit
loan with TD Bank in the total amount currently owed of
approximately $88,862. As collateral security for such TD Bank
Loan, though no final security analysis has been made, the Debtors
believe TD Bank holds valid, perfected and enforceable secondary
and junior interests in all of the Debtors' assets.
On the Petition Date, the Debtors believe they were current with
their loan obligations to both the SBA and TD Bank, and were not in
default as to their obligations to either lender.
By the terms of the respective loan agreements, the Debtors pay
$8,800 monthly to service the SBA Loans and approximately $2,200 a
month to TD Bank to service the TD Bank Credit Line.
The Budget demonstrates that in the next month, the first month
after the filing of the Chapter 11 Cases, the Debtors anticipate
that they will collect approximately $370,000 in revenue. The
Budget also sets forth the monthly expenditures required by the
Debtors and projects cash disbursements totaling $187,342, which
includes the monthly payments to the SBA and TD Bank. The bulk of
these disbursements represent payments related to payroll and other
employee-related obligations, utilities, the purchase of inventory
and supplies, and all other expenses necessary for the Debtors'
continued post-petition operations.
As set forth in the Interim Order, the Lender will receive adequate
protection of its prepetition interests in the cash collateral in
the form of (a) preservation or enhancement of its collateral’s
value through the Debtors' ability to continue operating and
maintaining their businesses and to generate a continuous income
stream, and (b) additional or replacement liens.
A copy of the motion is available at https://urlcurt.com/u?l=w1BJn3
from PacerMonitor.com.
About Pacifica CMFM Group LLC
Pacifica CMFM Group LLC and Centric Fm Solutions, Inc. are
affiliated and related businesses owned and operated by a husband
and wife, Chip Zoegall and Rihman Farid. Pacifica provides
construction management, program management, as well as consulting
services for commercial and multi-unit residential facilities.
Farid is the sole shareholder and serves as its President, with
Zoegall providing operational support.
Centric provides facility management and support services for
capital improvement programs and everyday facility support to
primarily commercial entities. Zoegall is the sole shareholder and
serves as its President.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 8-23-72182) on June 20,
2023. In the petition signed by Riham Farid, president, the Debtor
disclosed up to $50,000 in assets and up to $500,000 in
liabilities.
Todd E. Duffy, Esq., at DuffyAmedeo LLP, represents the Debtor as
legal counsel.
PEER STREET: Okayed to Tap Cash Collateral Pending Mortgage Sale
----------------------------------------------------------------
Leslie A. Pappas of Law360 reports that bankrupt real estate
investment platform Peer Street Inc. got a Delaware bankruptcy
court's permission Wednesday, June 28, 2023, to tap into cash
collateral and access its various bank accounts as it prepares to
sell six pools of investment assets connected with about 900
mortgages.
As reported in the TCR, Peer Street, Inc. and affiliates asked the
U.S. Bankruptcy Court for the District of Delaware for authority to
use cash collateral and provide adequate protection.
PSI is party to a Credit Agreement dated October 12, 2021, by and
among PSI, as borrower and the other Prepetition Borrowers as
guarantors, on the one hand, and Magnetar Financial LLC as the
Paying Agent, and certain of Magnetar's affiliates and managed
funds party thereto, as lenders, on the other. The Prepetition
Credit Agreement provides for convertible secured term loans in an
aggregate principal amount not to exceed $30 million. The loans
provided under the Prepetition Credit Agreement are secured by a
lien on substantially all of the Prepetition Borrowers' assets.
As of the Petition Date, the Prepetition Borrowers were indebted to
the Prepetition Secured Parties under the Prepetition Financing
Documents, for an aggregate amount of $27.239 million. The loan
includes secured PIK interest at a rate of 6%.
The entities with an interest in the cash collateral are Magnetar
Structuring Credit Fund, L.P., Magnetar Longhorn Fund, LP, Purpose
Alternative Credit Fund - F LLC, Purpose Alternative Credit Fund -
T LLC and Magnetar Lake Credit Fund, LLC, and Magnetar Financial
LLC, as agent.
As adequate protection, the Prepetition Secured Parties and their
Agent will be granted additional and replacement valid, binding,
enforceable, non-avoidable, and perfected postpetition security
interests and liens upon any and all repaid Servicing Advances.
The Prepetition Secured Parties and the Agent, for the benefit of
the Prepetition Secured Parties, will each be granted an allowed
administrative expense claim with super-priority over all other
administrative expenses and all other claims against the
Prepetition Borrowers or their estates or any kind or nature
whatsoever, but in all cases subject and subordinate to the
Carve-Out and the Permitted Prior Liens.
About Peer Street
Headquartered in El Segundo, California, Peer Street is a
technology platform that democratizes access to real estate debt
investments. The company's unique technology-driven marketplace
enables investors to diversify their capital in a fixed-income
asset class that had previously been difficult for individuals to
access.
On June 26, 2023, Peer Street, Inc., and 14 affiliated debtors
filed voluntary petitions for relief under Chapter 11 of the United
States Bankruptcy Code (Bankr. D. Del. Lead Case No. 23-10815). The
cases are pending before the Honorable Judge Laurie Selber
Silverstein.
PeerStreet is advised by Young Conaway and Kramer Levin as its
legal advisors (Joe Barry, jbarry@ycst.com; Brad O'Neill,
boneill@kramerlevin.com), David Dunn of Province, Inc. as Chief
Restructuring Officer (ddunn@provincefirm.com), and Piper Sandler
Loan Strategies, LLC as broker (C.K. Smith, ck.smith@psc.com).
Stretto, the claims agent, maintains the page
https://cases.stretto.com/peerstreet
PERSHARD INVESTMENTS: Wins Interim Cash Collateral Access
---------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Florida,
West Palm Beach Division, authorized Pershard Investments, LLC to
use cash collateral on an interim basis in accordance with the
budget.
The Debtor requires the use of cash collateral to continue to
maintain the business.
Wells Fargo holds a security interest in all of the Debtor's assets
including all accounts, receivables, future, fixtures, equipment,
etc.
Navitas holds a security interest in all of the Debtor's assets
including all accounts, receivables, future, fixtures, equipment,
etc. at the 143-1/2 N Congress Ave, Ste 22 location.
The estimated value of the secured assets at the time of the
bankruptcy filing was approximately $6,000.
In connection with the Debtor's proposed use of cash collateral,
Wells Fargo will have, nunc pro tunc as of the commencement of the
Chapter 11 cases, a replacement lien pursuant to 11 U.S.C. section
361(2) on and in all property of the Debtor acquired or generated
after the Petition Date.
Wells Fargo and Navitas will not have or be granted a Replacement
Lien on or against any claims or causes of action arising under 11
U.S.C. Sections 542 through 550 or on or against the proceeds of
the Avoidance Actions.
The Replacement Liens will be subject and subordinate to any and
all fees payable to the Subchapter V Trustee, the United States
Trustee or the Clerk of the Bankruptcy Court.
Commencing July 1, 2023 and continuing on the 1st day of each month
thereafter, until otherwise ordered by this Court, the Debtor will
make adequate protection payments to Wells Fargo and Navitas in the
amount of $500 each per month.
A further 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=zhlGQq from PacerMonitor.com.
The Debtor projects $30,328 in gross profit and $25,132 in total
expenses for one month.
About Pershard Investments, LLC
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. In the petition signed by Raam K. Pershard, managing member,
the Debtor disclosed up to $50,000 in assets and up to $500,000 in
liabilities.
Judge Mindy A. Mora oversees the case.
Brian K. McMahon, Esq., at Brian K. McMahon, PA, represents the
Debtor as legal counsel.
PHOENIX TELECOM: Files for Chapter 11 to Downsize
-------------------------------------------------
Phoenix Telecom Inc. filed for chapter 11 protection in the
Northern District of Florida. The Debtor elected on its voluntary
petition to proceed under Subchapter V of chapter 11 of the
Bankruptcy Code.
The Debtor, a Florida corporation established in 2002, specializes
in wireless construction and modification in the Southeast region
of the United States. The Debtor offers services ranging from
construction of new telecommunication towers, structural upgrades
and modifications to existing telecommunication towers, tower mount
modifications, lines and various antenna installs,
telecommunication tower maintenance, technical services, and other
related services.
The Debtor's president and sole shareholder is Jesus V. Delgado,
who owns 100 percent of the stock in the Debtor.
The Debtor's operations are based at 2991 South Highway 29 in
Cantonment, Florida and performed at various customer sites around
the Southeastern United States. The Debtor leases the Premises
from Bear Property Holdings, LLC.
The Debtor's total gross income in 2022 was $6,039,021. The
Debtor's total gross income for 2023 year to date is approximately
$1.5 million.
Reasons for Filing Chapter 11
The Debtor's business grew quickly during the pandemic when the
demand for wireless infrastructure was drastically and rapidly
increased. Following such growth, as the country began to open
back up and operate less remotely, the Debtor was not able to
sustain its rapid growth. The Debtor leases its vehicle fleet,
which it utilizes to perform specialized construction services, and
the Debtor fell behind on lease payments. The lessor began
threatening to repossess the Debtor's vehicles, which would have
irreparably jeopardized the Debtor's business operations.
Additionally, the state of Florida froze one of the Debtor's
operating accounts on account of unpaid taxes, causing further
financial strain. This left the Debtor with no choice but to file
this Chapter 11 case in order to restructure its debts and downsize
its operations effectively.
According to court filings, Phoenix Telecom estimates between $1
million and $10 million in debt owed to 1 to 49 creditors. The
petition states that funds will be available to unsecured
creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
July 31, 2023 at 11:00 a.m. in Room Telephonically on telephone
conference line: 877) 835-0364 (participant passcode: 4662459).
About Phoenix Telecom
Phoenix Telecom, Inc., a company in Cantonment, Fla., filed a
petition under Chapter 11, Subchapter V of the Bankruptcy Code
(Bankr. N.D. Fla. Case No. 23-30408) on June 14, 2023, with $1
million to $10 million in both assets and liabilities. Jesus V.
Delgado, president, signed the petition.
Jerrett Matthew McConnell has been appointed as Chapter 11
Subchapter V Trustee.
Jodi Daniel Dubose, Esq., at Stichter, Riedel, Blain & Postler,
P.A., is the Debtor's legal counsel.
PICCARD PETS: Bid to Use Cash Collateral Denied as Moot
-------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida,
Jacksonville Division, denied as moot the motion to use cash
collateral filed by Piccard Pet Supplies, Corp.
The Court said Amazon Capital Services, LLC is currently holding a
reserve of $20,000 in the Debtor's Seller Account. Amazon is
authorized, at its discretion, to either disburse the Reserve to
the Debtor or to apply the Reserve as a credit towards Amazon's
Allowed Secured Claim.
A coy of the Court's order is available at
https://urlcurt.com/u?l=iBlLay from PacerMonitor.com.
About Piccard Pets Supplies, Corp.
Piccard Pets Supplies, Corp. sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 23-00210) on
January 30, 2023. In the petition signed by Marlon Martinez, its
CEO, the Debtor disclosed up to $50,000 in assets and up to $10
million in liabilities.
Judge Jacob A. Brown oversees the case.
Thomas Adam, Esq., at Adam Law Group, represents the Debtor as
legal counsel.
PLUMBING TECHNOLOGIES: Starts Subchapter V Bankruptcy Case
----------------------------------------------------------
Plumbing Technologies LLC filed for chapter 11 protection in the
Southern District of New York. The Debtor elected on its voluntary
petition to proceed under Subchapter V of chapter 11 of the
Bankruptcy Code.
PlumbTech was founded in 2014 and specializes in the design,
distribution and manufacturing of toilet seats. PlumbTech offers a
comprehensive toilet seats program for both professional end users
and everyday consumers. The product line is a complete line of
high quality toilet seats that include residential molded and solid
wood, residential plastic, light commercial and heavy duty
commercial plastic.
A series of events and circumstances, beginning in 2019, have led
PlumbTech to seek protection under Chapter 11 of the Bankruptcy
Code:
A. In the fall of 2019, the United States government increased
the tariff on wood seats from China by 25%, for a total of 28.3%.
The tariff on plastic seats was initially increased by 25% and
later reduced to 7%, resulting in a total of 13.6%. PlumbTech had
to pass these costs to its customers via price increases. The
resulting loss of business was approximately $500,000 in annual
sales.
B. A number of PlumbTech's customers closed as a result of
COVID-19. For approximately 18 months, the majority of
PlumbTech’s customers and prospective customers were closed to
sales calls from PlumbTech sales representatives or management.
This resulted in
a severe limitation of PlumbTech's ability to increase its market
share and add to its customer base.
C. Inflation has significantly impacted PlumbTech’s operations
and cash flow. Since early 2020, the price of diesel fuel has more
than doubled in cost, which had to be passed along to PlumbTech's
customers. For the period of 2020-2022, PlumbTech implemented ten
price increases due to fuel costs. Inflation has also eroded
consumer demand for durable goods.
D. With the reopening of business following the COVID-19 lock
downs, the demand for goods accelerated very quickly. This placed
a major strain on manufacturers and logistic companies to meet the
demand. Unfortunately, the global infrastructure for product
distribution could not handle the increased demand, resulting in
the cost of shipping PlumbTech's inventory increasing by an average
of 300% to 500%. Due to competitive pressure from domestic
competitors, not all of this cost could be passed along to
PlumbTech's customers.
By the 3rd Quarter of 2022, the cost of international shipping
began to decline back to pre-2021 rates -- this resulted in
PlumbTech owning inventory that is not competitively priced or with
little to no potential for making a profit. The logistic crisis
also created an international demand for additional warehouse space
which has resulted in increased cost for storage and product
distribution.
E. In January, 2023, PlumbTech lost approximately 50% of a major
customer's business (approximately $700k in profits).
The Debtor believes that protection under chapter 11 and a
reorganization of its miscellaneous obligations, including insider
capital investment loans, in the Bankruptcy Court is necessary and
in the best interest of its creditors.
According to court filings, Plumbing Technologies estimates $1
million to $10 million in debt 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 12, 2023 at 12:30 p.m.
About Plumbing Technologies
Plumbing Technologies, LLC, designs, engineers, manufactures,
markets, and sells toilet seats. The company is based in Sparks,
Nevada.
Plumbing Technologies filed a petition under Chapter 11, Subchapter
V of the 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.
The Subchapter V trustee:
Heidi J. Sorvino
7 Times Square, Suite 2900
New York, NY 10036-6524
E-mail: Sorvinoh@whiteandwilliams.com
Tel: (212) 631-4417
Michelle L. Trier, Esq., at Genova, Malin and Trier, LLP, is the
Debtor's legal counsel.
PROSPERITAS LEADERSHIP: Charter School Files Subchapter V Case
--------------------------------------------------------------
Prosperitas Leadership Academy Inc. filed for chapter 11 protection
in the Middle District of Florida.
According to court filings, Prosperitas Leadership Academy
estimates between $1 million and $10 million in debt owed to 1 to
49 creditors. The petition states that funds will be available to
unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated for
July 31, 2023 at 10:00 a.m. in Room Telephonically on telephone
conference line: 877-801-2055 (participant passcode: 8940738#).
The Debtor operates a charter school under the auspices of the
Orange County Public Schools from facilities located at 2140 W,
Washington Street, Orlando, Florida 32805.
Events Leading to Chapter 11 Filing
The Debtor's business has been adversely affected by a debt owed to
DriRite. In 2018, the Debtor's building was vandalized, which
caused major flooding to the building. DriRite performed flood
services charging the Debtor approximately $231,507.00. DriRite
assured the Debtor that all services would be covered under the
Debtor's insurance policy and proceeded with the flood restoration.
Unbeknownst to the Debtor, the Debtor's insurance policy was not
in effect to cover the newly built building. DriRite sued the
Debtor and obtained a final judgment in the amount of $455,698.92,
and a foreclosure sale was scheduled for June 22, 2023.
The Debtor desires to use the relief provided by Subchapter V to
restructure its business, so that it is better able to satisfy its
ongoing obligations and be profitable going forward.
The Debtor commenced the Chapter 11 Case in order to implement a
comprehensive restructuring, stabilize its operations for the
benefit of its customers, secured creditors, employees, vendors,
and other unsecured creditors; and to propose a mechanism to
efficiently address and resolve all claims.
The filing of this Chapter 11 Case is not the end-result of any
strategy or attempt to avoid any lawful responsibilities or
obligations. Rather, the Debtor commenced this Chapter 11 Case
after a comprehensive review of all realistic alternatives and the
consideration and balancing of a variety of factors.
About Prosperitas Leadership Academy
Prosperitas Leadership Academy Inc. is a public charter school for
residents of Orange County.
Prosperitas Leadership Academy Inc. sought relief under Subchapter
V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case
No. 23-02443) on June 20, 2023. In the petition filed by Michael
Spence, as Board president, the Debtor reports total assets of
$2,009,763 and total liabilities of $2,533,820.
Jerrett M McConnell has been appointed as Subchapter V trustee.
The Debtor is represented by:
Jeffrey Ainsworth, Esq.
BransonLaw PLLC
2140 W Washington St.
Orlando, FL 32805-1268
PUERTO RICO: Court Sets PREPA Bondholders Claim at $2.38 Billion
----------------------------------------------------------------
Michelle Kaske of Bloomberg News reports that holders of Puerto
Rico Electric Power Authority debt have a claim to $2.38 billion of
the bankrupt utility's net revenue, according to the judge
overseeing the case.
U.S. District Court Judge Laura Taylor Swain determined the amount
that bondholders have a right to receive from the power utility,
called PREPA, in a ruling on Monday, June 26, 2023. The decision
is likely to be seen as a blow to investors, who have argued that
the utility can repay -- over time -- the $8.3 billion of bonds it
had outstanding when it entered bankruptcy in July 2017.
In the case Adv. Proc. No. 19-00391, Fin. Oversight & Mgmt. Bd. for
P.R. v. U.S. Bank Nat'l Ass'n, as Tr., from June 6-8, 2023, the
Court held a hearing on claim (the "502 Hearing") comprising: a day
of opening statements and oral argument, a day of cross-examination
and redirect of certain witnesses whose declarations were received
in evidence, and a day of closing argument. The following
witnesses testified at the 502 Hearing: Mr. David Plastino on
behalf of the Plaintiffs, Dr. Maureen Chakraborty on behalf of the
Defendants, Dr. Susan Tierney on behalf of the Defendants, Mr. John
Young on behalf of the Defendants, Ms. Julia Frayer on behalf of
the Committee, and Mr. Scott Martinez on behalf of the Committee.
According to the ruling, "The Court has determined, after
consideration of the evidence and expert testimony, that Mr.
Plastino's model is the most appropriate model as it contemplates a
net revenue stream that is set to be derived and paid through a
method that should be relatively affordable for ratepayers,
reflects the impact of system maintenance and improvements that
will be required to keep the system generating revenues over a
lengthy period, and includes a present value discount factor for
the time value of money and general market perceptions of risk.
The Court is not persuaded, however, that the discount rates
proposed by Dr. Chakraborty (5.05%) and Mr. Plastino (6.5%) are
adequate. Ms. Frayer provided persuasive testimony and evidentiary
support for a finding that the discount rates proposed would be
"unrealistic" given PREPA's financial distress and the existing
market conditions in 2017. (June 7 Tr. 198:19-25, 199:1-15, 19-25.)
Additionally, Ms. Frayer pointed to contemporaneous data from
similarly situated Caribbean islands with investor-owned electric
utilities to show that a rational investor would have had explored
"other opportunities" for investment given PREPA's significant risk
profile. (June 7 Tr. 199:1-15, 19-25.) In sum, the discount rates
proposed by Dr. Chakraborty and Mr. Plastino do not adequately
represent certain economic risk factors associated with the
projected cashflows that could be generated by ratepayers. While
the Court declines to adopt the discount rates proffered by Dr.
Chakraborty and Mr. Plastino, the record does not support Ms.
Frayer's proposed discount rate in the range of 8.46% to 16.65%,25
as a reasonable substitution. The Court instead concludes that a
discount rate of 7% should be applied to determine the present
value of the net revenue cash flow projected out over the 100-year
period. That discounted cash flow, using Dr. Plastino's base-case
incremental revenues over a period of one hundred years and a
discount rate of 7%, would be $2,985,000,000.00 before Dr.
Plastino's placeholder reduction of 4% for additional types of
risks. (Plastino Decl. Ex. A, App. 3-1.)"
About Puerto Rico
Puerto Rico is a self-governing commonwealth in association with
the United States. The chief of state is the President of the
United States of America. The head of government is an elected
Governor. There are two legislative chambers: the House of
Representatives, 51 seats, and the Senate, 27 seats. The
governor-elect is Ricardo Antonio "Ricky" Rossello Nevares, the son
of former governor Pedro Rossello.
In 2016, the U.S. Congress passed PROMESA, which, among other
things, created the Financial Oversight and Management Board and
imposed an automatic stay on creditor lawsuits against the
government, which expired May 1, 2017.
The members of the oversight board are: (i) Andrew G. Biggs, (ii)
Jose B. Carrion III, (iii) Carlos M. Garcia, (iv) Arthur J.
Gonzalez, (v) Jose R. Gonzalez, (vi) Ana. J. Matosantos, and (vii)
David A. Skeel Jr.
On May 3, 2017, the Commonwealth of Puerto Rico filed a petition
for relief under Title III of the Puerto Rico Oversight,
Management, and Economic Stability Act ("PROMESA"). The case is
pending in the United States District Court for the District of
Puerto Rico under case number 17-cv-01578. A copy of Puerto Rico's
PROMESA petition is available at
http://bankrupt.com/misc/17-01578-00001.pdf
On May 5, 2017, the Puerto Rico Sales Tax Financing Corporation
(COFINA) commenced a case under Title III of PROMESA (D.P.R. Case
No. 17-01599). Joint administration has been sought for the Title
III cases.
On May 21, 2017, two more agencies -- Employees Retirement System
of the Government of the Commonwealth of Puerto Rico and Puerto
Rico Highways and Transportation Authority (Case Nos. 17-01685 and
17-01686) -- commenced Title III cases.
U.S. Chief Justice John Roberts named U.S. District Judge Laura
Taylor Swain to preside over the Title III cases.
The Oversight Board has hired as advisors, Proskauer Rose LLP and
O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic
consultant, Citigroup Global Markets as municipal investment
banker, and Ernst & Young, as financial advisor.
Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M.
Abelson, Esq., of Proskauer Rose LLP; and Hermann D. Bauer, Esq.,
at O'Neill & Borges LLC are onboard as attorneys.
Prime Clerk LLC is the claims and noticing agent. Prime Clerk
maintains the case web site
https://cases.primeclerk.com/puertorico
Jones Day is serving as counsel to certain ERS bondholders.
Paul Weiss is counsel to the Ad Hoc Group of Puerto Rico General
Obligation Bondholders.
PUERTO RICO: Nuveen, Blackrock Will Appeal $2.4B. Cap on Claim
--------------------------------------------------------------
Michelle Kaske of Bloomberg Law reports that a group of investors
holding the defaulted debt of the Puerto Rico Electric Power
Authority plan to appeal a judge's ruling capping their claims at
$2.38 billion, a fraction of what the utility owed when it entered
bankruptcy in 2017.
The group of ad hoc creditors, which includes BlackRock Financial
Management, Nuveen Asset Management, Franklin Advisers, GoldenTree
Asset Management and Invesco Advisers, is also seeking to delay a
hearing on a debt-cutting plan until November, according to a joint
status report filed to the court on Tuesday, June 27, 2023.
About Puerto Rico
Puerto Rico is a self-governing commonwealth in association with
the United States. The chief of state is the President of the
United States of America. The head of government is an elected
Governor. There are two legislative chambers: the House of
Representatives, 51 seats, and the Senate, 27 seats. The
governor-elect is Ricardo Antonio "Ricky" Rossello Nevares, the son
of former governor Pedro Rossello.
In 2016, the U.S. Congress passed PROMESA, which, among other
things, created the Financial Oversight and Management Board and
imposed an automatic stay on creditor lawsuits against the
government, which expired May 1, 2017.
The members of the oversight board are: (i) Andrew G. Biggs, (ii)
Jose B. Carrion III, (iii) Carlos M. Garcia, (iv) Arthur J.
Gonzalez, (v) Jose R. Gonzalez, (vi) Ana. J. Matosantos, and (vii)
David A. Skeel Jr.
On May 3, 2017, the Commonwealth of Puerto Rico filed a petition
for relief under Title III of the Puerto Rico Oversight,
Management, and Economic Stability Act ("PROMESA"). The case is
pending in the United States District Court for the District of
Puerto Rico under case number 17-cv-01578. A copy of Puerto Rico's
PROMESA petition is available at
http://bankrupt.com/misc/17-01578-00001.pdf
On May 5, 2017, the Puerto Rico Sales Tax Financing Corporation
(COFINA) commenced a case under Title III of PROMESA (D.P.R. Case
No. 17-01599). Joint administration has been sought for the Title
III cases.
On May 21, 2017, two more agencies -- Employees Retirement System
of the Government of the Commonwealth of Puerto Rico and Puerto
Rico Highways and Transportation Authority (Case Nos. 17-01685 and
17-01686) -- commenced Title III cases.
U.S. Chief Justice John Roberts named U.S. District Judge Laura
Taylor Swain to preside over the Title III cases.
The Oversight Board has hired as advisors, Proskauer Rose LLP and
O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic
consultant, Citigroup Global Markets as municipal investment
banker, and Ernst & Young, as financial advisor.
Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M.
Abelson, Esq., of Proskauer Rose LLP; and Hermann D. Bauer, Esq.,
at O'Neill & Borges LLC are onboard as attorneys.
Prime Clerk LLC is the claims and noticing agent. Prime Clerk
maintains the case web site
https://cases.primeclerk.com/puertorico
Jones Day is serving as counsel to certain ERS bondholders.
Paul Weiss is counsel to the Ad Hoc Group of Puerto Rico General
Obligation Bondholders.
PUERTO RICO: PREPA Bankruptcy Judge Advances Case as Appeal Looms
-----------------------------------------------------------------
Michelle Kaske of Bloomberg News reports that the judge overseeing
the bankruptcy of Puerto Rico's Electric Power Authority signaled a
preference to let the case proceed even if some bondholders appeal
her ruling to limit investors' claim to $2.38 billion.
US District Court Judge Laura Taylor Swain on Wednesday, June 28,
2023, urged the island's financial oversight board, manager of the
utility's bankruptcy, to work with creditors to determine
procedures and solutions that serve the residents of Puerto Rico.
"There needs to be a future that makes sense for that community,"
Swain said during a hearing.
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.
R.B. DWYER: Seeks Cash Collateral Access Thru Sept 8
----------------------------------------------------
R.B. Dwyer Co., Inc. and affiliates ask the U.S. Bankruptcy Court
for the Middle District of Pennsylvania for authority to use cash
collateral on an interim basis through September 8, 2023 and
thereafter, on a final basis.
The Debtor requires the use of cash collateral for immediate
expenditures and operating expenses in accordance with the budget.
The Debtors' businesses were severely impacted by the COVID-19
pandemic, which adversely affected both their sales and resulting
revenues.
The Debtors are co-borrowers under a pre-petition revolving credit
facility made by Pathward, National Association f/k/a Crestmark, a
division of Metabank, National Association in the original
principal amount of $54 million. The Pathward Loan is secured by
all or substantially all of the Debtors' assets, including cash and
cash equivalents. In addition, Debtor Color Craft Flexible
Packaging, LLC is the borrower under a loan made by the U.S. Small
Business Administration in the original principal amount of
$500,000.
As of the Petition Dale, the Debtors' obligations to Pathward
totaled approximately $2.459 million, and Color Craft's obligations
to the SBA totaled roughly $505,000.
The Debtors submit that the SBA holds a valid, perfected first
priority lien on Color Craft's assets and that Pathward holds a
valid, perfected first priority lien on the assets of the other
Debtors and a second priority lien on Color Craft's assets.
As adequate protection of the respective interests of Pathward and
the SBA in the Collateral, the Debtors propose to remain current on
their respective principal and interest obligations to Pathward and
the SBA during the post-petition period and to grant each lender
replacement liens in collateral arising after the Petition Date.
A copy of the motion is available at https://urlcurt.com/u?l=Vxc63N
from PacerMonitor.com.
About R.B. Dwyer Co., Inc.
R.B. Dwyer Co., Inc. and affiliates comprise an integrated
commercial packaging business with facilities located in
Pennsylvania, California and Tennessee.
R.B. Dwyer Co. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Pa. Case No. 23-01420) on June 26,
2023. In the petition signed by James B. Dwyer, president, the
Debtor disclosed up to $10 million in both assets and liabilities.
Jeffrey Kurtzman, Esq., at Kurtzman | Steady, LLC, represents the
Debtor as legal counsel.
RESCOM LTD: Wins Interim Cash Collateral Access
-----------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Ohio,
Western Division, authorized Rescom, Ltd. to use cash collateral on
an interim basis in accordance with its stipulation with Minster
Bank and the budget.
As previously reported by the Troubled Company Reporter, the Debtor
requires the use of cash collateral to continue funding its
necessary business expenses and fund the costs associated with the
administration of the Chapter 11 case.
Prior to the commencement of the case, Minster Bank was the
Debtor's primary bank. The Debtor's obligations to Minster Bank
were evidenced, in part, by the following: (1) Promissory Note
dated September 20, 2012, in the face principal amount of $59,338;
(2) Promissory Note dated as of February 22, 2018, in the face
principal amount of $54,750; (3) Promissory Note dated as of
February 22, 2018, in the face principal amount of $63,750; (4)
Promissory Note dated as of February 22, 2018, in the face
principal amount of $56,250; and all such other business loan
agreements, security agreements, assignments of rents, and other
instruments, documents and other papers executed in connection
therewith or relating thereto, including as amended. The loans
evidenced by the Senior Secured Loan Documents have been declared
in default. The total principal indebtedness claimed to be owing to
Minster Bank under the Senior Secured Loan Documents, as of the
Petition Date, is $145,850.
Unless extended by a writing executed by the Parties or by further
stipulation or order, the Debtor’s right to use Cash Collateral
terminates the earlier of:
(a) July 28, 2023;
(b) Five business days following the Debtor’s and/or
Receiver’s receipt from Minster Bank of written notice that the
Debtor is in default of the Order, which default remains uncured
during the five business-day period and pursuant to which the
Debtor has not raised any dispute that it is in default;
(c) Upon entry of a Court order finding that the Debtor is in
default of the Stipulation and Order;
(d) The effective date of any plan confirmed in the case;
(e) Unless filed by the Debtor, in which case termination will
occur upon the filing of the motion, the date of entry of an order
dismissing the Chapter 11 case or converting this Chapter 11 case
to a Chapter 7 case, or removing the Debtor and appointing a
Chapter 11 trustee or a Subchapter V Trustee or examiner or other
responsible person in the Chapter 11 case;
(f) The date of entry of an order granting relief from the
automatic stay for any purpose in respect of any of the Collateral;
and
(g) The entry of an order reversing, revoking, modifying,
amending, staying, rescinding or supplementing the Order.
A copy of the Court's order and the Debtor's budget is available at
https://bit.ly/43kKbZ1 from PacerMonitor.com.
The Debtor projects $13,039 in total income and $10959 in total
expenses for July 2023.
About Rescom, Ltd.
Rescom, Ltd. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Ohio Case No. 23-30540) on April 7,
2023. In the petition signed by Duaine Liette, sole member, the
Debtor disclosed up to $1 million in both assets and liabilities.
Judge Guy R. Humphrey oversees the case.
Paul H. Shaneyfelt, Esq., at Shaneyfelt & Associates, LLC,
represents the Debtor as legal counsel.
SAFFIRE VAPOR: Glen Watson Named Subchapter V Trustee
-----------------------------------------------------
The Acting U.S. Trustee for Region 8 appointed Glen Watson, Esq.,
at Watson Law Group, PLLC as Subchapter V trustee for Saffire Vapor
Retail, LLC and its affiliates.
Mr. Watson will be paid an hourly fee of $425 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Watson declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Glen Watson, Esq.,
Watson Law Group, PLLC
1114 17th Av. S., Suite 201
P.O. Box 121950
Nashville, TN 37212
Phone: (615) 823-4680
Email: glen@watsonpllc.com
About Saffire Vapor Retail
Saffire Vapor Retail, LLC and its affiliates filed petitions under
Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. M.D. Tenn.
Lead Case No. 23-02264) on June 26, 2023. The affiliates are
Saffire Vapor Holdings, LLC, Saffire Vapor Distributions, LLC,
Parapoint, LLC, VTC Delivery, LLC and Emperor Augustus, LLC.
At the time of the filing, Saffire Vapor Retail reported $100,001
to $500,000 in assets and $1 million to $10 million in
liabilities.
The Debtors are represented by Emergelaw, PLLC.
SAN ANTONIO ASPHALT: Wins Cash Collateral Access on Final Basis
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Western District of Texas, San
Antonio Division, authorized San Antonio Asphalt & Maintenance, LLC
to use cash collateral on a final basis in accordance with the
budget, with a 10% variance.
In addition to the expenses listed in the monthly budget, the
Debtor will have authority to use cash collateral to pay the
$39,568 in pre-petition debt owed to Vulcan Materials. The Debtor
may also pay the wages that were due and owing on the day of filing
in the amount of $3,200.
As previously reported by the Troubled Company Reporter, as of the
Petition Date, the creditors holding security interests in the
Debtor's assets that constitute cash collateral include the Small
Business Administration and BK Sealer and Coating Mix P.C., to the
extent the value of the Debtor's assets exceed the SBA's security
interest. The Debtor also has other unsecured debt of roughly
$417,709.
In April 2020, the Debtor obtained a $150,000 loan from the SBA.
The parties' Loan and Security Agreement granted the lender a
security interest in all of the Debtor's assets. The SBA holds a
first-priority security interest in the Collateral.
As adequate protection, the SBA is granted a replacement lien in
all post-petition property of the Debtor, of the same nature, to
the same extent, and with the same priority as the lien existing as
of the Petition Date.
As further adequate protection of the SBA's interests, the Debtor
will pay the SBA on or before July 15, 2023 the regular contract
payment of $750 per month.
A copy of the order is available at https://urlcurt.com/u?l=4xF1BL
from PacerMonitor.com.
About San Antonio Asphalt & Maintenance, LLC
San Antonio Asphalt & Maintenance, LLC sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No.
23-50646-cag) on May 31, 2023.
In the petition signed by David Singh, owner, the Debtor disclosed
up to $500,000 in both assets and liabilities.
Judge Craig A. Gargotta oversees the case.
Heidi McLeod, Esq., at Heidi McLeod Law Office, PLLC, represents
the Debtor as legal counsel.
SATURNO DESIGN: Case Summary & 13 Unsecured Creditors
-----------------------------------------------------
Debtor: Saturno Design, LLC
506 SW Sixth Avenue, Suite 600
Portland, OR 97204
Business Description: The Debtor owns and operates a business that
provides website development and software
solutions to the legal industry. The
services the Debtor provides to the legal
industry include: branding, blogs, content
management systems, e-mail marketing
systems, event registration, expense
management systems, websites, proposal
systems, extranets, search engine marketing,
website design and website metrics.
Chapter 11 Petition Date: July 3, 2023
Court: United States Bankruptcy Court
District of Oregon
Case No.: 23-31455
Judge: Hon. David W. Hercher
Debtor's Counsel: Tara J. Schleicher, Esq.
FOSTER GARVEY P.C.
121 SW Morrison St, Ste 1100
Portland, OR 97204
Tel: 503-228-3939
Email: tara.schleicher@foster.com
Total Assets: $151,448
Total Liabilities: $2,593,518
The petition was signed by Rodolfo (Rudy) Bozas as managing
partner.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 13 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/YCEGTQQ/Saturno_Design_LLC__orbke-23-31455__0001.0.pdf?mcid=tGE4TAMA
SMILE HOMECARE: Taps Law Office of Rachel S. Blumenfeld as Counsel
------------------------------------------------------------------
Smile Homecare Agency, Inc. seeks approval from the U.S. Bankruptcy
Court for the Eastern District of New York to employ the Law Office
of Rachel S. Blumenfeld, PLLC.
The Debtor requires legal counsel to:
a. give advice with respect to the powers and duties of the
Debtor and the continued management of its property and affairs;
b. negotiate with creditors, 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 and represent the Debtor
in all matters pending before the court, including dischargeability
actions, judicial lien avoidance, relief from stay actions, or any
other adversary proceedings;
e. represent the Debtor, if need be, in connection with
obtaining post-petition financing;
f. take any necessary action to obtain approval of a
disclosure statement and confirmation of a plan of reorganization;
and
g. perform other legal services.
The firm will be paid at the rate of $525 per hour and will be
reimbursed for out-of-pocket expenses incurred.
The retainer fee is $50,000.
Rachel Blumenfeld, Esq., disclosed in a court filing that her firm
is a "disinterested person" pursuant to Section 101(14) of the
Bankruptcy Code.
The firm can be reached at:
Rachel S. Blumenfeld
Law Office of Rachel S. Blumenfeld
26 Court Street, Suite 2220
Brooklyn, NY 11242
Tel: (718) 858-9600
Fax: 718-858-9601
About Smile Homecare Agency
Brooklyn, N.Y.-based Smile Homecare Agency Inc. is a provider of
home care services.
Smile Homecare Agency sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No. 23-40233) on Jan.25,
2023, with $539,257 in assets and $7,427,000 in liabilities. Ellen
Verny, president of Smile Homecare Agency, signed the petition.
Judge Elizabeth S. Stong oversees the case.
The Debtor tapped the Law Office of Rachel S. Blumenfeld as
bankruptcy counsel and Wisdom Professional Services, Inc. as
accountant.
SOLER & SOLER: Court OKs Cash Collateral Access on Final Basis
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Florida,
Miami Division, authorized Soler & Soler Hauling, Inc. to use cash
collateral on a final basis in accordance with the budget, with a
10% variance.
The Debtor requires the use of cash collateral for the continued
operation of its business in the ordinary course.
As previously reported by the Troubled Company Reporter, the
Debtor's primary assets consist of a food trailer, transportation
equipment, industrial fans, and various commercial vehicles, which
are leased. The Debtor also had three bank accounts on the Petition
Date, with a total balance of $98,736.
The Debtor is indebted to FFE Services LLC, FC Marketplace, LLC and
the U.S. Small Business Administration.
The Court ruled that each creditor with a security interest in cash
collateral will have a perfected post-petition lien against cash
collateral to the same extent and with the same validity and
priority as the prepetition lien, without the need to file or
execute any document as may otherwise be required under applicable
non bankruptcy law. In addition, the Debtor will maintain insurance
coverage for its property in accordance with the obligations under
the loan and security documents with the Secured Lenders.
A copy of the order is available at https://urlcurt.com/u?l=zuCXAp
from PacerMonitor.com.
Soler & Soler Hauling, Inc.
Soler & Soler Hauling, Inc. is a family-owned cargo hauling company
that operates interstate in 48 states. Cargo hauled by the company
includes fresh produce, general freight, metal sheet, building
materials, grain feed hay, coal, meat, refrigerated food,
beverages, and paper products.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 23-11917) on March 10,
2023. In the petition signed by Edisley Soler Negrin, its
president, the Debtor disclosed $1,187,949 in assets and $5,946,472
in liabilities.
Judge Laurel M. Isicoff oversees the case.
Timothy S. Kingcade, Esq., at Kingcade, Garcia, and McMaken, P.A.,
represents the Debtor as legal counsel.
SOUTHERN DRILL: Case Summary & 13 Unsecured Creditors
-----------------------------------------------------
Debtor: Southern Drill Supply-Acquisition, LLC
1623 Bulevar Menor
Pensacola Beach FL 32561
Business Description: The Debtor is a professional and commercial
equipment and supplies merchant wholesaler.
Chapter 11 Petition Date: July 3, 2023
Court: United States Bankruptcy Court
Northern District of Florida
Case No.: 23-30452
Debtor's Counsel: Todd M. LaDoucer, Esq.
GALLOWAY JOHNSON TOMPKINS BURR & SMITH
118 E. Garden Street
Pensacola FL 32502
Tel: 850-436-7000
Email: tmlservice@gallowaylawfirm.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by William Shearer as managing member.
A copy of the Debtor's list of 13 unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/KFPWIOY/Southern_Drill_Supply-Acquisition__flnbke-23-30452__0002.0.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/FY2YN7Y/Southern_Drill_Supply-Acquisition__flnbke-23-30452__0001.0.pdf?mcid=tGE4TAMA
SUPPLY CHAIN WAREHOUSES: Seeks Cash Collateral Access Thru July 30
------------------------------------------------------------------
Supply Chain Warehouses Savannah LLC asks the U.S. Bankruptcy Court
for the Southern District of Georgia for authority to use cash
collateral and provide adequate protection.
The Debtor's cash needs are immediate in that the Debtor needs the
cash for the purpose of paying employees, utility bills, fuel,
maintenance and other necessary expenses until July 30, 2023.
The Debtor's principal source of revenues presently consists of
receipt of income from its operation of a logistics, transloading,
and warehouse operation in the greater Savannah Georgia area
related to the transportation industry. The Debtor's average
monthly income is presently $511,704.
As of the Petition Date, the Debtor is aware of these security
interests in assets which might constitute cash collateral:
a. UCC-1 Financing Statement dated September 29, 2021, filed
by Lien Solutions, as representative in the Superior Court of
Barrow County, Georgia, File No. 007-2021-057670 asserting a lien
on all assets of the Debtor including but not limited to rights of
payments and accounts;
b. UCC-1 Financing Statement dated May 4, 2022, filed by LG
Funding, LLC in the Superior Court of Barrow County, Georgia, File
No. 007-2022-026238 asserting a lien on all personal property;
c. UCC-1 Financing Statement dated November 3, 2022, filed by
Corporation Service Company, as representative, in the Superior
Court of Chatham County, Georgia, File No. 025-2022-003517
asserting a lien on all present and future accounts;
d. UCC-1 Financing Statement dated May 3, 2023, filed by Lien
Solutions for UCC Filer 2 in the Superior Court of Barrow County,
Georgia, File No. 007-2023-022324 asserting a lien on all accounts
and proceeds receivables; and
e. UCC-1 Financing Statement dated May 10, 2023, filed by
Corporation Service Company, as representative for BizFund, LLC in
the Superior Court of Coweta County, Georgia, File No.
038-2023-010529 asserting a lien on certain receivables for notice
purposes only.
The LS, LG and CSC UCCs are on obligations in which the Debtor has
paid the obligation in full and there is no outstanding liability
or indebtedness, and that the respective liens should have been
terminated.
The Debtor contends the LS, LG and CSC UCCs should have been
terminated and the Fox Funding UCC and BizFund UCC are reflective
of a loan and security agreement.
The value of the "cash collateral" as of the Petition Date is
estimated at $602,824 consisting of the following as of the
Petition Date:
a. Bank Accounts: $16,812.
b. Pre-Petition Accounts Receivables: $586,011; and
c. Inventory: Not Applicable.
The Debtor proposes to grant as adequate protection pursuant to 11
U.S.C. Sec. 361(s), a replacement lien on the Debtor's present and
future proceeds from the Warehouse Business, to the extent that (i)
the proceeds are to be used; (ii) the Court determines the Bank
Accounts and Pre-Petition Account Receivables are cash collateral;
and (iii) of $602,824, the value of the cash collateral.
A copy of the motion is available at https://urlcurt.com/u?l=xOzGJW
from PacerMonitor.com.
About Supply Chain Warehouses Savannah, LLC
Supply Chain Warehouses Savannah, LLC operates warehousing and
storage facility. The Debtor sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. S.D. Ga. Case No. 23-40540) on
June 23, 2023. In the petition signed by Phillip Lowell Stover,
managing member, the Debtor disclosed up to $10 million in both
assets and liabilities.
Judge Edward J. Coleman III oversees the case.
Jon Levis, Esq., at Levis Law Firm, LLC, represents the Debtor as
legal counsel.
SUPPLY CHAIN: Tiffany Caron Named Subchapter V Trustee
------------------------------------------------------
The U.S. Trustee for Region 21 appointed Tiffany Caron as
Subchapter V trustee for Supply Chain Warehouses Savannah, LLC.
Ms. Caron 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. Caron declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Tiffany E. Caron
P.O. Box 711
West Palm Beach, FL 33402
Tel: (404) 647-4917
Email: tiffany.caron@hotmail.com
About Supply Chain
Supply Chain Warehouses Savannah, LLC operates warehousing and
storage facility in Port Wentworth, Ga.
Supply Chain Warehouses Savannah filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. S.D. Ga. Case No.
23-40540) on June 23, 2023, with $1 million to $10 million in both
assets and liabilities. Phillip Lowell Stover, managing member,
signed the petition.
Judge Edward J. Coleman, III oversees the case.
Jon Levis, Esq., at Levis Law Firm, LLC is the Debtor's counsel.
T-ROLL CONSTRUCTION: Lender's Bid to Prohibit Cash Access OK'd
--------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Colorado entered an
order prohibiting T-Roll Construction, Inc. from using cash
collateral as requested by Commercial Credit Group Inc.
The Debtor did not contest the majority of CCG's allegations in the
Motion. Moreover, the Debtor admitted to having used some of CCG's
cash collateral.
The Debtor is directed to deposit all cash collateral into the Cash
Collateral Account and provide CCG an accounting regarding the
nature and extent of its cash collateral including a report of all
accounts receivable that have been received by the Debtor since the
Petition Date and whether all such accounts receivable have been:
(a) spent by the Debtor;
(b) on what particular expenses such accounts have been spent
on; and
(c) deposited into the Cash Collateral Account.
A copy of the order is available at https://urlcurt.com/u?l=tK0ui9
from PacerMonitor.com.
About T-Roll Construction, Inc.
T-Roll Construction, Inc. sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Colo. Case No. 23-11154) on March
24, 2023. In the petition signed by Seth Cvancara, owner and chief
executive officer, the Debtor disclosed up to $10 million in both
assets and liabilities.
Judge Elizabeth E. Brown oversees the case.
Stephen Berken, Esq., at Berken Cloyes, PC, represents the Debtor
as legal counsel.
T. JONES TRUCKING: Seeks Cash Collateral Access
-----------------------------------------------
T. Jones Trucking, LLC asks the U.S. Bankruptcy Court for the
Middle District of Florida, Orlando Division, for authority to use
cash collateral and provide adequate protection to:
-- Triumph Business Capital, and
-- to the extent necessary, to these entities with inferior
interests who may assert a lien or security interest in the
Debtor's cash collateral: Blue Water Capital; CT Corporation
System, as representative; Mantis Funding; Corporation Service
Company; Infusion Capital Group; and First Corporate Solutions as
representatives.
The Debtor requires the use of cash collateral to continue its
operations.
The Debtor runs a profitable and productive transporting business
that has become burdened with usurious and unconscionable loans
from merchant cash advance lenders that have caused cash flow
issues that have spiraled to become unmanageable. The Debtor was
inundated with offers from MCA lenders and unfortunately made an
improvident decision to accept a loan offer from an MCA lender,
which the Debtor used to operate its business. Unfortunately, that
loan almost immediately became unmanageable and unserviceable due
to the massively high, usurious interest rates, which caused cash
flow issues for the business. The Debtor was then inundated with
additional offers from MCA lenders as a way to address the Debtor's
cash flow issues, and again the Debtor improvidently accepted,
which then drastically exacerbated the Debtor's financial and cash
flow issues with additional predatory loans from MCA lenders that
are imposing massive and unnecessary fees, interest, and other
costs on the Debtor.
The MCA lenders' ability to unilaterally take funds from the
Debtor's bank accounts have made it difficult for the Debtor to
operate. The Debtor also has other trade creditors and an SBA loan
that it desires to reorganize.
As of the Petition Date, the Debtor has approximately $5 of cash in
deposit accounts. The Debtor's other personal property (consisting
of office equipment and supplies) is valued at approximately $300.
On February 19, 2021, a UCC Statement was filed by Corporation
Service Company, as Representative. The Debtor is uncertain who
this creditor is, but it appears to be Triumph. The Debtor owes
approximately $18,174 to Triumph.
The cash collateral, which the Debtor seeks to use, is comprised in
whole or in part of the Debtor's income, cash, receivables, and
proceeds received from or on account of its prepetition or
post-petition business operations, called revenue or cash
collateral.
Without conceding that the Secured Creditor or Inferior Interests
have a lien on the Debtor's cash collateral, as adequate protection
for the use of the Secured Creditor's and the Inferior Interests'
cash collateral (if any), the Debtor proposes to grant creditors a
replacement lien with the same validity, extent, and priority as
their respective prepetition lien(s), if any.
A copy of the motion is available at https://urlcurt.com/u?l=vphpAK
from PacerMonitor.com.
About T. Jones Trucking
T. Jones Trucking, LLC filed a Chapter 11 bankruptcy petition
(Bankr. M.D. Fla. Case No. 23-01392) on April 14, 2023, with as
much as $1 million in both assets and liabilities.
Judge Tiffany P. Geyer oversees the case.
The Debtor is represented by BransonLaw, PLLC.
TANTUM COMPANIES: Seeks $450,000 DIP Loan from Guaranty Bank
------------------------------------------------------------
Tantum Companies, LLC and affiliates ask the U.S. Bankruptcy Court
for the Western District of North Carolina, Charlotte Division, for
authority to use cash collateral and obtain postpetition
financing.
The Debtors seek to enter into a secured credit line in an
aggregate principal amount of $450,000 with Guaranty Bank as
Lender, and grant the DIP Lender postpetition liens and security
interests in all of the assets constituting the Prepetition
Collateral with such liens securing the DIP Loan having priority
pari passu with the Prepetition Liens.
The DIP Loan will be due and payable in full upon the earlier of:
i) December 31, 2023, and
ii) the effective date under any confirmed Chapter 11 Plan.
Tantum Companies is obligated to Guaranty Bank & Trust Company for
a loan under:
-- a Loan Agreement dated December 8, 2020 between the Tantum
and Guaranty Bank; and
-- a Promissory Note dated December 8, 2020 granted by the
Debtor in favor of Guaranty Bank in the principal amount of $10.4
million.
The Prepetition Loan is set to mature on December 8, 2025. As of
the Petition Date, the current outstanding balance due under the
Prepetition Loan Agreement and the Prepetition Note was in the
approximate amount of $10.861 million. The Prepetition Loan
Agreement contains customary representations, warranties, and
customary material affirmative and negative covenants.
The Prepetition Loan was made under the Main Street Lending
Program, which was a loan program established by the Federal
Reserve to make loans to small and medium sized business impacted
by the Covid-19 pandemic. Guaranty Bank serves as the agent bank
administering the Prepetition Loan through the Main Street Lending
Program.
Tantum also maintained an unsecured credit card facility with the
Guaranty Bank. Tantum used the Credit Card Facility to fund many of
the expenses of Tantum specifically including necessary expenses
leading up to the filing of these bankruptcy cases. As of the
Petition Date, the amount owed under the Credit Card Facility was
$185,378.
Guaranty Bank also made purchase money equipment loans to Tantum
secured by purchase money security interest in certain equipment at
three corporate operated stores. The current balance on the
Equipment Loans is $1.845 million.
As adequate protection, Guaranty Bank will (i) maintain the
Prepetition Liens on the Prepetition Collateral, to the extent and
priority that existed prepetition, and (ii) be granted a
replacement security interest in and liens on any of the DIP
Collateral in which the Prepetition Lender did not have valid,
perfected liens and security interests as of the Petition Date.
A copy of the Debtor's motion is available at
https://urlcurt.com/u?l=7oMEpV from PacerMonitor.com.
About Tantum Companies, LLC
Tantum Companies, LLC is part of the restaurant industry. The
Debtor sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. W.D.N.C. Case No. 23-30407) on June 26, 2023. In the
petition signed by CEO Mark Cote, the Debtor disclosed up to $10
million in assets and up to $50 million in liabilities.
Judge Craig Whitley oversees the case.
Robert A. Cox, Jr., Esq., at Hamilton Stephens Steele + Martin,
PLLC, represents the Debtor as legal counsel. Blystone and
Donaldson is the Debtor's financial advisor.
THREE NICKELS: Taps Buchbinder Tunick & Company as Accountant
-------------------------------------------------------------
Three Nickels, LLC seeks approval from the U.S. Bankruptcy Court
for the Eastern District of New York to employ Buchbinder Tunick &
Company, LLP as its accountant.
The Debtor requires an accountant to:
a. prepare monthly operating statements and other financial
reports or statements;
b. assist the Debtor with the preparation of applicable tax
filings;
c. advise the Debtor and its bankruptcy professional as to any
tax claims filed in the Debtor's Chapter 11 case;
d. assist the Debtor and its bankruptcy professionals with any
accounting or tax-related aspects of any proposed Chapter 11 plan
or sale of assets;
e. assist the Debtor and its other professionals in
formulating a Chapter 11 plan; and
f. perform any other accounting or financial advisory services
that the Debtor may require or deem advisable in connection with
the case.
The firm will be paid at these rates:
David Sands $475 per hour
Partner/Members $400 to 430 per hour
Associate Accountants $250 to $300 per hour
Staff members $160 to 250 per hour
David Sands, a partner at Buchbinder, 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:
David Sands
Buchbinder Tunick & Company LLP
One Pennsylvania Plaza, Suite 3200
New York, NY 10119
Tel: (212) 695-5003
Email: dsands@buchbinder.com
About Three Nickels
Three Nickels, LLC sought protection for relief under Chapter 11 of
the Bankruptcy Code (Bankr. E.D.N.Y. Case No. 23-41456) on April
27, 2023, with as much as $50,000 in both assets and liabilities.
Judge Jil Mazer-Marino oversees the case.
The Debtor tapped Douglas J. Pick, Esq., at Pick & Zabicki, LLP as
legal counsel and MorrisAnderson & Associates, Ltd. as financial
advisor.
TRISEPTEM DEVELOPERS: Taps Scott B. Riddle as Substitute Counsel
----------------------------------------------------------------
TriSeptem Developers, Inc. seeks approval from the U.S. Bankruptcy
Court for the Northern District of Georgia to employ the Law Office
of Scott B. Riddle, LLC to substitute for the Law Office of Robert
A. Chambers.
The Debtor requires legal counsel to:
a. give advice with respect to the rights, powers, duties and
obligations of the Debtor in the administration of its Chapter 11
case, the operation of its business, and the management of its
property;
b. prepare legal papers and conduct examinations incidental to
administration;
c. advise and represent the Debtor in connection with all
applications, motions or complaints for reclamation, adequate
protection, sequestration, relief from stays, appointment of a
trustee or examiner, and all other similar matters;
d. develop the relationship of the status of the Debtor to the
claims of creditors;
e. assist in the formulation and presentation of a plan of
reorganization; and
f. perform other necessary legal services.
The firm will be compensated at $395 per hour and will be
reimbursed for out-of-pocket expenses incurred.
The firm received a retainer from the Debtor in the amount of
$$5,000.
Scott Riddle, Esq., 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:
Scott B. Riddle, Esq.
Law Office of Scott B. Riddle, LLC
Suite 1800
3340 Peachtree Road NE
Atlanta, GA 30326
Telephone: (404) 815-0164
Email: scott@scottriddlelaw.com
About TriSeptem Developers
TriSeptem Developers, Inc., a general contractor in Decatur, Ga.,
filed a petition for relief under Chapter 11 of the Bankruptcy Code
(Bankr. N.D. Ga. Case No. 22-59930) on Dec. 6, 2022, with up to $10
million in assets and up to $1 million in liabilities. Mark Allen,
manager, signed the petition.
Judge Sage M. Sigler oversees the case.
The Debtor is represented by Scott B. Riddle, Esq., at the Law
Office of Scott B. Riddle, LLC.
TWILIGHT HAVEN: Lisa Holder Named Subchapter V Trustee
------------------------------------------------------
The U.S. Trustee for Region 17 appointed Lisa Holder, Esq., a
practicing attorney in Bakersfield, Calif., as Subchapter V trustee
for Twilight Haven.
Ms. Holder will be paid an hourly fee of $300 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Holder declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Lisa Holder, Esq.
3710 Earnhardt Drive
Bakersfield, CA 93306
Phone: (661) 205-2385
Email: lholder@lnhpc.com
About Twilight Haven
Twilight Haven, a California non-profit corporation, operates as a
non-profit corporation offering affordable independent senior
apartments, assisted living apartments as well as skilled nursing
services within its 10-acre campus.
Twilight Haven filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. E.D. Calif. Case No. 23-11332) on June
22, 2023, with $12,592,133 in assets and $3,005,377 in liabilities.
Kristine Williams, chief executive officer, signed the petition.
Judge Rene Lastreto II oversees the case.
Riley C. Walter, Esq., at Wanger Jones Helsley is the Debtor's
legal counsel.
VERA HOLDINGS: Case Summary & One Unsecured Creditor
----------------------------------------------------
Debtor: Vera Holdings, LLC
11205 Woodridge Forest
San Antonio, TX 78249
Business Description: The Debtor is a Single Asset Real Estate
as defined in 11 U.S.C. Section 101(51B).
Chapter 11 Petition Date: July 3, 2023
Court: United States Bankruptcy Court
Western District of Texas
Case No.: 23-50857
Debtor's Counsel: James S. Wilkins, Esq.
JAMES S. WILKINS, P.C.
1100 NW Loop 410
Ste. 700
San Antonio, TX 78213
Tel: 210-271-9212
Email: jwilkins@stic.net
Estimated Assets: $50,000 to $100,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Mark A. Vera as managing member.
The Debtor listed House Max Funding as its only unsecured creditor
holding a claim of $556,000.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/3PCJUUY/VERA_HOLDINGS_LLC__txwbke-23-50857__0001.0.pdf?mcid=tGE4TAMA
VISTAGEN THERAPEUTICS: Incurs $59.25M Net Loss in FY Ended March 31
-------------------------------------------------------------------
Vistagen Therapeutics, Inc. filed with the Securities and Exchange
Commission its Annual Report on Form 10-K disclosing a net loss and
comprehensive loss of $59.25 million on $227,300 of total revenues
for the fiscal year ended March 31, 2023, compared to a net loss
and comprehensive loss of $47.76 million on $1.11 million of total
revenues for the year ended March 31, 2022.
As of March 31, 2023, the Company had $21.09 million in total
assets, $9.01 million in total liabilities, and $12.08 million in
total stockholders' equity.
San Francisco, California-based WithumSmith+Brown, PC, the
Company's auditor since 2006, issued a "going concern"
qualification in its report dated June 28, 2023, citing that the
Company has suffered negative cash flows from operations and
recurring losses from operations since inception, resulting in an
accumulated deficit of $326.9 million as of March 31, 2023, that
raise substantial doubt about its ability to continue as a going
concern.
A full-text copy of the Form 10-K is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1411685/000143774923018793/vtgn20230331_10k.htm
About VistaGen
Headquartered in San Francisco, California, VistaGen Therapeutics,
Inc. -- http://www.vistagen.com-- is a late clinical-stage
biopharmaceutical company aiming to transform the treatment
landscape for individuals living with anxiety, depression and other
CNS disorders. The Company is advancing therapeutics with the
potential to be faster-acting, and with fewer side effects and
safety concerns, than those that are currently available for
treatment of anxiety, depression and multiple CNS disorders.
VITAL PHARMA: Enters Into Asset Purchase Agreement with Monster
---------------------------------------------------------------
Monster Beverage Corporation (NASDAQ: MNST) and Vital
Pharmaceuticals, Inc. (together with certain of its debtor
affiliates, "Bang Energy") on July 3 disclosed that they have
entered into an Asset Purchase Agreement under which a subsidiary
of Monster would acquire substantially all of Bang Energy's assets,
including a beverage production facility located in Phoenix, AZ.
The Transaction is subject to certain terms and closing conditions,
which include obtaining Bankruptcy Court approval.
Under the terms of the APA, subject to satisfaction of certain
closing conditions, Monster will acquire Bang Energy's performance
beverages and related Bang Energy businesses through the purchase
of substantially all of Bang Energy's assets.
While Monster is hopeful that the Transaction will be completed,
there is no guarantee that it will receive Bankruptcy Court
approval. Bang Energy filed for Chapter 11 protections under the
U.S. Bankruptcy Code in October 2022.
Advisors
Evercore Group LLC is acting as investment banker and Pachulski
Stang Ziehl & Jones LLP and Akerman LLP are acting as legal counsel
to Monster.
Huron Consulting Group is acting as financial advisor, Rothschild &
Co is acting as investment banker, and Latham & Watkins LLP and
Berger Singerman LLP are acting as legal counsel to Bang Energy. C
Street Advisory Group is acting as strategy and communications
advisor to Bang Energy.
About Monster Beverage Corporation
Based in Corona, California, Monster Beverage Corporation is a
holding company and conducts no operating business except through
its consolidated subsidiaries. The Company's subsidiaries develop
and market energy drinks, including Monster Energy(R) drinks,
Monster Energy Ultra(R) energy drinks, Juice Monster(R) Energy +
Juice energy drinks, Java Monster(R) non-carbonated coffee + energy
drinks, Rehab(R) Monster(R) non-carbonated energy drinks, Monster
Hydro(R) non-carbonated refreshment + energy drinks, Monster
Energy(R) Nitro energy drinks, Reign Total Body Fuel(R) high
performance energy drinks, Reign Inferno(R) thermogenic fuel high
performance energy drinks, Reign Storm(R) clean energy drinks,
NOS(R) energy drinks, Full Throttle(R) energy drinks, BPM(R) energy
drinks, BU(R) energy drinks, Burn(R) energy drinks, Gladiator(R)
energy drinks, Live+(R) energy drinks, Mother(R) energy drinks,
Nalu(R) energy drinks, Play(R) and Power Play(R) (stylized) energy
drinks, Relentless(R) energy drinks, Samurai(R) energy drinks,
Ultra Energy(R) drinks, Predator(R) energy drinks and Fury(R)
energy drinks. The Company's subsidiaries also develop and market
still and sparkling waters under the Monster(R) Tour Water(TM)
brand name. The Company's subsidiaries also develop and market
craft beers, hard seltzers and flavored malt beverages under a
number of brands, including Jai Alai(R) IPA, Dale's Pale Ale(R),
Dallas Blonde(R), Wild Basin(R) hard seltzers and The Beast
Unleashed(TM). For more information visit www.monsterbevcorp.com.
About Bang Energy
Since 1993, Florida-based Vital Pharmaceuticals, Inc., d/b/a Bang
Energy and as VPX Sports, has developed delicious performance
beverages, supplements, and workout products to fuel high-energy
lifestyles. In addition to one of the top energy drink brands in
the U.S., Bang Energy, the company's premium quality products
include keto-friendly Meltdown(R), Quash(R), Vooz(TM) and
Redline(R).
About Vital Pharmaceuticals
Since 1993, Florida-based Vital Pharmaceuticals, Inc., doing
business as Bang Energy and as VPX Sports, has developed
performance beverages, supplements, and workout products to fuel
high-energy lifestyles. VPX Sports is the maker of Bang energy
drinks, among other consumer products.
Vital Pharmaceuticals, Inc., along with certain of its domestic
subsidiaries and affiliates, filed voluntary petitions for
protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D.
Fla. Lead Case No. 22-17842) on Oct. 10, 2022.
VPX estimated $500 million to $1 billion in assets and liabilities
as of the bankruptcy filing.
The Hon. Scott M. Grossman is the case judge.
The Debtors tapped Latham & Watkins, LLP as general bankruptcy
counsel; Berger Singerman, LLP as local counsel; Haynes and Boone,
LLP and Faulkner ADR Law, PLLC as special counsels; Huron
Consulting Group, Inc., as CTO services provider; and Rothschild &
Co US, Inc., as investment banker. Stretto, Inc., is the notice,
claims and solicitation agent.
The U.S. Trustee for Region 21 appointed an official committee of
unsecured creditors on Nov. 1, 2022. The committee tapped
Lowenstein Sandler, LLP as general bankruptcy counsel; Sequor Law,
P.A., as local counsel; and Lincoln Partners Advisors, LLC as
financial advisor.
VMR CONTRACTORS: Court OKs Cash Collateral Access Thru July 31
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois,
Eastern Division, authorized VMR Contractors Inc. to use cash
collateral through July 31, 2023, in accordance with the terms of
the Order entered March 1, 2023 and the budget.
The Court said the Debtor will make an adequate protection payment
by July 31 of:
-- $1,500 to the Internal Revenue Service; and
-- $1,471 to Old National Bank.
As previously reported by the Troubled Company Reporter, several
entities may claim an interest in the Debtor's cash collateral.
Those potential claimants are:
1. The State of Illinois, which recorded state tax liens on
April 28 and June 14, 2022, in the total amount of $32,346.
2. The IRS, which recorded federal tax liens with the Illinois
Secretary of State, including a lien dated November 16, 2016, in
the amount of $424,956. Other tax liens also have been recorded;
the IRS has asserted it is owed $819,234. The Debtor disputes a
large portion of this amount, including an obligation from 2015 of
$560,027, which appears to be clearly erroneous because it is
wholly disproportionate to the Debtor's operations.
3. Old National Bank, whose predecessor, Bridgeview Bank
Group, filed on August 1, 2018, a financing statement with the
Illinois Secretary of State as document number 023614561. The
amount owed to Old National is approximately $160,633 in London,
England.
A further hearing on the matter is set for July 31 at 10 a.m.
A copy of the Court's order and the Debtor's budget is available at
https://urlcurt.com/u?l=cOhmaT from PacerMonitor.com.
The Debtor projects $107,922 in total income and $105,908 in total
expenses for the period ending July 31, 2023.
About VMR Contractors
VMR Contractors supplies and installs rebar for road construction
projects. The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ill. Case No. 22-14211) on December 8,
2022. In the petition signed by Vincent Roberson, its president,
the Debtor disclosed up to $1 million in assets and up to $10
million in liabilities.
Judge Benjamin Goldgar oversees the case.
William J. Factor, Esq., at Factor Law, is the Debtor's legal
counsel.
WCS PROPERTY: Case Summary & Three Unsecured Creditors
------------------------------------------------------
Debtor: WCS Property Group, LLC
11019 Pine Lilly Place
Bradenton, FL 34202
Business Description: WCS owns real properties located at
2136, 2128, and 2148 17th Street, Sarasota,
FL valued at $5 million.
Chapter 11 Petition Date: July 3, 2023
Court: United States Bankruptcy Court
Middle District of Florida
Case No.: 23-02820
Debtor's Counsel: Buddy D. Ford, Esq.
BUDDY D. FORD, P.A.
9301 West Hillsborough Avenue
Tampa, FL 33615-3008
Tel: (813) 877-4669
Fax: (813) 877-5543
Email: All@tampaesq.com
Total Assets: $5,081,697
Total Liabilities: $3,219,521
The petition was signed by Taylor Santos as co-manager.
A full-text copy of the petition containing, among other items, a
list of the Debtor's three unsecured creditors is available for
free at PacerMonitor.com at:
https://www.pacermonitor.com/view/O2BR7ZY/WCS_Property_Group_LLC__flmbke-23-02820__0001.0.pdf?mcid=tGE4TAMA
WEWORK INC: Deven Parekh Quits as Director
------------------------------------------
Deven Parekh notified WeWork Inc. of his resignation from the Board
of Directors effective June 23, 2023.
According to the Company, Mr. Parekh's resignation is not the
result of any disagreement with the Company with respect to any
matter relating to the Company's operations, policies or practices.
Mr. Parekh occupied a seat on the Board pursuant to Insight
Partners' designation under the Amended and Restated Stockholders
Agreement, dated as of May 5, 2023, by and among the Company, SVF
Endurance (Cayman) Limited, SVF II WW Holdings (Cayman) Limited and
Benchmark Capital Partners VII (AIV), L.P. The Board and the
Nominating and Corporate Governance Committee of the Board intend
to consider any new individual designated for consideration by
Insight Partners as required under the Stockholders Agreement. Mr.
Parekh served as chair of the Compensation Committee of the Board
until his resignation.
As a result of Mr. Parekh's resignation, on June 29, 2023, the
Company notified the New York Stock Exchange that, as of June 23,
2023, the Company was no longer in compliance with Section 303A.01
of the NYSE Listed Company Manual, which requires that the majority
of the directors comprising the Board be independent. The Company
intends to cure this deficiency as promptly as practicable, and
Daniel Hurwitz (Chairman of the Board) continues to lead a
committee composed of entirely independent directors to search for
additional independent directors as well as a permanent chief
executive officer.
About WeWork
New York, NY-based WeWork Inc. (NYSE: WE) -- wework.com -- is a
global flexible workspace provider, serving a membership base of
businesses large and small through its network of 779 Systemwide
Locations, including 622 Consolidated Locations as of December
2022.
WeWork reported a net loss of $2.29 billion for the year ended Dec.
31, 2022, a net loss of $4.63 billion for the year ended Dec. 31,
2021, a net loss of $3.83 billion in 2020, and a net loss of $3.77
billion in 2019. As of Dec. 31, 2022, the Company had $17.86
billion in total assets, $21.31 billion in total liabilities, and a
total deficit of $3.43 billion.
[] Commercial Chapter 11 Filings Up 68% in First Half 2023
----------------------------------------------------------
The 2,973 total commercial Chapter 11 bankruptcies filed during the
first six months of 2023 represented a 68 percent increase over the
1,766 filed during the same period in 2022, according to data
provided by Epiq Bankruptcy, the leading provider of U.S.
bankruptcy filing data. Individual Chapter 13 filings increased by
23 percent during the same period.
Overall commercial filings registered 12,107 for the first half of
2023, representing an 18 percent increase from the commercial
filing total of 10,258 for the first half of 2022. Small business
filings, captured as Subchapter V elections within Chapter 11,
totaled 814 in the first six months of 2023, a 55 percent increase
from the 525 elections during the same period in 2022.
Overall commercial filings increased 12 percent in June 2023, as
the 2,123 filings were up from the 1,891 commercial filings
registered in June 2022. The 404 commercial Chapter 11 filings in
June represented a 9 percent increase from the 371 filings in June
2022. Total Subchapter V elections within Chapter 11, experienced a
111 percent increase from 94 in June 2022 to 198 in June 2023.
"The increase in commercial and individual bankruptcy filings
during the first half of 2023 underscores the economic challenges
faced by businesses and individuals," said Gregg Morin, Vice
President of Business Development and Revenue at Epiq Bankruptcy.
"Our objective is to provide bankruptcy professionals with timely
and accurate data necessary for analyzing stakeholder volumes and
trends for making informed business decisions."
Total bankruptcy filings were 217,420 during the first six months
of 2023, a 17 percent increase from the 185,352 total filings
during the same period a year ago. Total individual filings also
registered a 17 percent increase, as the 205,313 filings during the
first half of 2023 were up from the 175,094 filings during the
first six months of 2022. The 85,390 individual Chapter 13 filings
in the first half of 2023 represent a 23 percent increase over the
69,367 filings during the same period in 2022.
All chapters increased in June 2023 compared to June 2022, with
37,700 total bankruptcy filings representing an increase of 17
percent from the 32,198 filed in 2022. Total commercial filings
were up 12 percent from 1,891. Total Individuals were up 18 percent
from 30,307.
"The growth in filings is reflective of more families and
businesses facing surging debt loads due to rising interest rates,
inflation, and increased borrowing costs," said ABI Executive
Director Amy Quackenboss. "Bankruptcy provides a shield to the
economic challenges being experienced by financially struggling
individuals and companies."
The substantial year-over-year increase in Subchapter V elections
reflects statutory developments that took place last year. The
Bankruptcy Threshold Adjustment and Technical Corrections Act was
quickly enacted in June 2022 to restore the debt eligibility limit
for small businesses back to $7.5 million while also increasing the
debt limit for individual Chapter 13 filings to $2.75 million and
removing the distinction between secured and unsecured debt for
that calculation. The increased eligibility limits for both
Subchapter V and Chapter 13 were currently set to sunset on June
21, 2024. ABI formed the Subchapter V Task Force to study small
business reorganization and make recommendations in a report to be
released in April 2024.
Epiq and ABI will host an abiLIVE webinar at 2 p.m. ET July 12
featuring experts providing insights on 2023 filing trends. Deirdre
O'Connor, Managing Director for Corporate Restructuring at Epiq,
will serve as the moderator with speakers including Morin, ABI
President-Elect Chris Ward, of Polsinelli, and ABI's Ed Flynn.
Click here for complimentary registration.
ABI has partnered with Epiq Bankruptcy to provide the most current
bankruptcy filing data for analysts, researchers, and members of
the news media. Epiq Bankruptcy is the leading provider of data,
technology and services for companies operating in the business of
bankruptcy. Its Bankruptcy Analytics subscription service provides
on-demand access to the industry's most dynamic bankruptcy data,
updated daily. Learn more at
https://bankruptcy.epiqglobal.com/analytics.
About Epiq
Epiq, a global technology-enabled services leader to the legal
industry and corporations, takes on large-scale, increasingly
complex tasks for corporate counsel, law firms, and business
professionals with efficiency, clarity, and confidence. Clients
rely on Epiq to streamline the administration of business
operations, class action, and mass tort, court reporting,
eDiscovery, regulatory, compliance, restructuring, and bankruptcy
matters. Epiq subject-matter experts and technologies create
efficiency through expertise and deliver confidence to
high-performing clients around the world. Learn more at
www.epiqglobal.com.
About ABI
ABI -- http://www.abi.org/-- is the largest multi-disciplinary,
nonpartisan organization dedicated to research and education on
matters related to insolvency. ABI was founded in 1982 to provide
Congress and the public with unbiased analysis of bankruptcy
issues. The ABI membership includes nearly 10,000 attorneys,
accountants, bankers, judges, professors, lenders, turnaround
specialists and other bankruptcy professionals, providing a forum
for the exchange of ideas and information.
*********
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