/raid1/www/Hosts/bankrupt/TCR_Public/230713.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Thursday, July 13, 2023, Vol. 27, No. 193
Headlines
1134 FOOD: Files Wind-Down Plan After Sale to ASG
1255 LLC: Exclusivity Period Extended to August 4
2202 EAST ANDERSON: Trustee Taps Coldwell as Real Estate Broker
243 FOOD: Files Wind-Down Plan After Sale to ASG
2ND CHANCE: Lantzman Says Open-Ended Plan Not Feasible
604KENNEDY LLC: Case Summary & 20 Largest Unsecured Creditors
79 NICK TRAIL: Taps Craigville Realty as Real Estate Broker
824 NORTH DIXIE: Gets OK to Hire Charles Krblich as Accountant
AINOS INC: Receives 180-Day Extension to Regain Nasdaq Compliance
ALLIANCE RESOURCE: S&P Affirms 'B+' ICR, Outlook Positive
ALPINE 4 HOLDINGS: Issues $1.67M Convertible Note to Mast Hill
ARTERRA WINES: S&P Downgrades ICR to 'B-', Outlook Negative
BIG DADDY GUNS: Seeks to Extend Plan Exclusivity by 120 Days
BLOCKFI INC: 3AC Liquidators Say Plan Outline Inadequate
BOX OUT STUDIO: Case Summary & Three Unsecured Creditors
BULGARIAN BAR: Has Until Aug. 10 to File Plan and Disclosures
CHRISTMAS TREE SHOPS: Winds Down After Lenders Withdrew Funding
COLONY DONKEY: Court OKs Interim Cash Collateral Access
CORUS ENTERTAINMENT: S&P Lowers ICR to 'BB-' on Higher Leverage
COTTLE CHRIST: Taps Caldwell & Riffee as Legal Counsel
CRESCENT ENERGY: S&P Upgrades ICR to 'B+', Outlook Stable
CROWN COMMERCIAL: Court OKs Cash Collateral Access Thru Sept 7
CSR WORLDWIDE: Court OKs Cash Collateral Access Thru July 14
DELTA WHOLESALE: Richardo Kilpatrick Named Subchapter V Trustee
DESTINED PROPERTIES: Gets OK to Hire Prosystem as Accountant
DIOCESE OF ALBANY: Committees Tap OneDigital as Consultant
DIOCESE OF ROCKVILLE CENTRE: Wants Abuse Claims Consolidated
DIOCESE OF SANTA ROSA: Exclusivity Period Extended to January 5
DIXON TOWN HOMES: Taps Law Office of Lewis Phon as Counsel
EAST BROADWAY: BOH Updates Plan Amid New Lease, New Tenant
ENERGY DRILLING: Amends Liquidating Plan
FARADAY FUTURE: To Limit Authorized Shares Available for Issuance
FUSE GROUP: Sells $50K Convertible Notes to Liu Marketing
FUTURE VALUE: Logan Investments Says Debtor's Plan Not Confirmable
GAUCHO GROUP: Extends "Outside Date" for Execution of Ground Lease
GENESIS GLOBAL: Morton Says Plan Disclosures Inadequate
GIGA-TRONICS INC: Incurs $2.5 Million Net Loss in First Quarter
GOBO LTD: Exclusivity Period Extended to October 27
GREEN POINT: Seeks to Hire Jacobs P.C. as Legal Counsel
GREEN ROADS: Seeks to Extend Plan Exclusivity by 120 Days
GREYSTONE SELECT: S&P Alters Outlook to Stable, Affirms 'B' ICR
HAYDEN LANE: Dawn Maguire Named Subchapter V Trustee
HUDSON RIVER: S&P Affirms 'BB-' ICR, Outlook Stable
INMET MINING: Seeks to Extend Plan Exclusivity to December 3
INTERNATIONAL LAND: Incurs $10.4 Million Net Loss in 2022
KUAKINI HEALTH: S&P Places 'CCC' LT Bond Rating on Watch Negative
LSF12 BADGER: S&P Assigns 'B' Issuer Credit Rating, Outlook Stable
LTL MANAGEMENT: Sues Doctors Linking Talc to Mesothelioma
MAINE CONSULTING: Starts Subchapter V Bankruptcy Case
MANANTIAL ROCA: Case Summary & Six Unsecured Creditors
MEDHAWK POOLS: Seeks Cash Collateral Access
MEDIAMATH HOLDINGS: May Use $5.5MM of Cash Collateral
MINERVA RESOURCES: Aug. 23 Hearing on Plan & Disclosures
MISSISSIPPI CENTER: Seeks to Hire Bradley as Special Counsel
MULEHOUSE GROUP: Seeks Cash Collateral Access
NASSAU BREWING: Gets OK to Hire Cushman & Wakefield as Broker
NOSRAT LLC: Seeks to Extend Plan Exclusivity to October 8
NOSRAT LLC: Unsecureds Owed $924K Unimpaired in Plan
NOTTINGHAM ACADEMY: Court OKs Cash Collateral Access Thru July 31
NOVABAY PHARMACEUTICALS: Chief Product Officer Resigns
OAKWOOD DREAMS: Marwah Trust Says Disclosures Inadequate
OKAYSOU CORP: Has Deal on Cash Collateral Access
ONORATI CONSTRUCTION: Court OKs Interim Cash Collateral Access
PHI GROUP: Tam Bui Quits as COO, Director
PRESBYTERIAN RETIREMENT: Fitch Affirms 'BB' IDR, Outlook Stable
RAPID P&P: Donald Brady Named Subchapter V Trustee
REDEEMED CHRISTIAN: Plan Filing Deadline Extended to Oct. 31
RELOADED GAMES: Seeks $25,000 DIP Loan
RIALTO BIOENERGY: Taps B. Riley Securities as Financial Advisor
RIALTO BIOENERGY: Taps GlassRatner as Valuation Consultant
RUTHERFORD ENTERPRISES: Taps Bruner Wright as Counsel
RYZE RENEWABLES: Seeks to Extend Plan Exclusivity to November 6
SEMILEDS CORP: Incurs $756K Net Loss in Third Quarter
SPEED TRANS: Case Summary & 20 Largest Unsecured Creditors
STAGE LIGHTING: Wins Interim Cash Collateral Access
STITCH ACQUISITION: S&P Affirms 'CCC' ICR, Outlook Negative
SYNTHESIS INDUSTRIAL: Gen. Unsecureds Owed $5.9K Unimpaired in Plan
TANNER CONSTRUCTION: Taps Ruff & Cohen as Legal Counsel
TECH-MAR ENTERPRISES: Files Emergency Bid to Use Cash Collateral
TEXARKANA ARKANSAS: Taps Keech Law Firm as Bankruptcy Counsel
TK CLEANING: Taps Meares Property Advisors as Sales Agent
TPT GLOBAL: Posts $1.4 Million Net Loss in First Quarter
TRINITY LEGACY: Court OKs Cash Collateral Access Thru Sept 30
TRISTAR DRYWALL: Files Chapter 11 Petition
TULEYRIES LAND: Gets OK to Hire Mike Torrence as Listing Agent
TWILIGHT HAVEN: Court OKs Cash Collateral Access Thru July 26
UNITED FURNITURE: Trustee Taps Mullin as Special Counsel
VALCAL INC: Court OKs Cash Collateral Access Thru Sept 7
VEGASNAP LLC: Taps Larson & Zirzow as Bankruptcy Counsel
WCS PROPERTY GROUP: Files for Chapter 11 Bankruptcy Protection
WE KICK BRASS: Hires Milbery & Kesselman CPAs as Accountant
ZHANG MEDICAL: Taps Pardalis & Nohavicka as Legal Counsel
[^] Recent Small-Dollar & Individual Chapter 11 Filings
*********
1134 FOOD: Files Wind-Down Plan After Sale to ASG
-------------------------------------------------
1134 Food LLC submitted a Chapter 11 Plan and a Disclosure
Statement.
The Debtor filed its voluntary petition for relief under Chapter 11
of the Bankruptcy Code on Nov. 22, 2022. The Debtor operated a
supermarket located at 1134 East New York Avenue, Brooklyn, New
York. The purpose of the filing was to stay the foreclosure of the
Business and allow the Debtor to operate it as a debtor in
possession and to give it time to reorganize its obligations.
Faced with operating losses, and the motion of Associated
Supermarket Group, LLC ("ASG") to convert the case to a Chapter 7
liquidation, and ASG's notice to terminate the use of cash
collateral that would result in the cessation of operations, the
Debtor negotiated the sale of its business and most of its assets
to ASG. The sale agreement provided the Debtor with $200,000 (to
be split with the related case of 243 Food LLC), to satisfy Chapter
11 administrative claims and a distribution for prepetition
creditors.
The motion to approve the settlement with ASG that resulted in the
sale of the business was noticed to all creditors and approved by
the Court after a hearing at which no objections were filed. The
Debtor therefore closed on the transaction with ASG and ceased
operations on March 20, 2023.
The treatment of Creditors under the Plan, which provides for
payment up to payment in full on account of their Claims, provides
creditors with the proceeds from the sale of the Debtor's assets.
Under the Plan, Class 2 Unsecured Claims total $745,433. Subject
to the provisions of Article 4 of the Plan with respect to Disputed
Claims, in full satisfaction, settlement, release and discharge of
the Class 2 Unsecured Claims, the Holders of Class 2 Unsecured
Claims against the Debtor will receive their proportionate share of
the proceeds from the sale after satisfaction of Administrative
Claims, Priority Tax Claims and Class 1 Claims. Class 2 is
impaired. According to a docket entry, general unsecured creditors
are slated to be paid "less than 5%" under the PLan.
Attorneys for the Debtor-in-Possession:
Marc A. Pergament, Esq.
WEINBERG, GROSS & PERGAMENT LLP
400 Garden City Plaza, Suite 309
Garden City, NY 11530
Tel: (516) 877-2424
A copy of the Disclosure Statement dated July 5, 2023, is available
at https://tinyurl.ph/oHEHZ from PacerMonitor.com.
About 1134 Food LLC
243 Food LLC operated a supermarket located at 143-60 243rd Street,
Rosedale, New York. 1134 Food LLC operated a supermarket located
at 1134 East New York Avenue, Brooklyn, New York.
243 Food, LLC and affiliate 1134 Food LLC sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No.
22-42912 and 22-42913) on Nov. 22, 2022. In the petition signed by
its manager, Mazen A. Dayem, 243 Food disclosed up to $10 million
in both assets and liabilities.
Judge Elizabeth S. Stong oversees the cases.
Marc A. Pergament, Esq., at Weinberg, Gross & Pergament, LLP, is
the Debtors' legal counsel.
1255 LLC: Exclusivity Period Extended to August 4
-------------------------------------------------
Judge Robert A. Mark of the U.S. Bankruptcy Court for the
Southern District of Florida extended 1255, LLC's exclusivity
periods for filing a chapter 11 plan and disclosure statement and
to solicit acceptances thereof to August 4, 2023 and November 4,
2023, respectively.
About 1255 LLC
1255, LLC sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. S.D. Fla. Case No. 23-11116) on Feb. 13, 2023, with
as much as $1 million in both assets and liabilities. Judge
Robert A. Mark oversees the case.
Joel M. Aresty P.A. is the Debtor's legal counsel.
2202 EAST ANDERSON: Trustee Taps Coldwell as Real Estate Broker
---------------------------------------------------------------
Carolyn Dye, the Chapter 11 trustee for 2202 East Anderson Street,
LLC, seeks approval from the U.S. Bankruptcy Court for the Central
District of California to employ Coldwell Banker.
The Debtor requires a real estate broker to market and sell its
real property located at 2800-2808 S. Santa Fe Ave., Los Angeles,
Calif.
The firm will be paid a commission of 4 percent of the gross
selling price.
As disclosed in court filings, Coldwell Banker is a "disinterested
person" pursuant to Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
William Friedman
Coldwell Banker
1608 Montana Avenue
Santa Monica, CA 90405
Tel: (213) 200-2500
About 2202 East Anderson Street
2202 East Anderson Street, LLC is a single asset real estate (as
defined in 11 U.S.C. Section 101(51B)).
2202 East Anderson Street filed a petition for relief under
Subchapter V of Chapter 11 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 has been
appointed as Subchapter V trustee.
Judge Neil W. Bason oversees the case.
The Debtor is represented by Stephen F. Biegenzahn, Esq., at the
Law Offices of Stephen F. Biegenzahn.
Carolyn A. Dye, the Debtor's Chapter 11 trustee, is represented by
Dumas & Kim, APC.
243 FOOD: Files Wind-Down Plan After Sale to ASG
------------------------------------------------
243 Food LLC submitted a Chapter 11 Plan and a Disclosure
Statement.
The Debtor filed its voluntary petition for relief under Chapter 11
of the Bankruptcy Code on Nov. 22, 2022. The Debtor operated a
supermarket located at 143-60 243rd Street, Rosedale, New York.
The purpose of the filing was to stay the foreclosure of the
Business and allow the Debtor to operate it as a debtor in
possession and to give it time to reorganize its obligations.
Faced with operating losses, and the motion of Associated
Supermarket Group, LLC ("ASG") to convert the case to a Chapter 7
liquidation, and ASG's notice to terminate the use of cash
collateral that would result in the cessation of operations, the
Debtor negotiated the sale of its business and most of its assets
to ASG. The sale agreement provided the Debtor with $200,000 (to
be split with the related case of 1134 Food LLC), to satisfy
Chapter 11 administrative claims and a distribution for prepetition
creditors.
The motion to approve the settlement with ASG that resulted in the
sale of the business was noticed to all creditors and approved by
the Court after a hearing at which no objections were filed. The
Debtor therefore closed on the transaction with ASG and ceased
operations on March 20, 2023.
The treatment of creditors under the Plan, which provides for
payment up to payment in full on account of their claims, provides
creditors with the proceeds from the sale of the Debtor's assets.
Under the Plan, Class 2 Unsecured Claims total $1,219,772. Subject
to the provisions of Article 4 of the Plan with respect to Disputed
Claims, in full satisfaction, settlement, release and discharge of
the Class 2 Unsecured Claims, the Holders of Class 2 Unsecured
Claims against the Debtor will receive their proportionate share of
the proceeds from the sale after satisfaction of Administrative
Claims, Priority Tax Claims and Class 1 Claims. Class 2 is
impaired. According to a docket entry, general unsecured creditors
are slated to be paid "less than 5%" under the PLan.
Attorneys for the Debtor:
Marc A. Pergament, Esq.
WEINBERG, GROSS & PERGAMENT LLP
400 Garden City Plaza, Suite 309
Garden City, NY 11530
Tel: (516) 877-2424
A copy of the Disclosure Statement dated July 5, 2023, is available
at https://tinyurl.ph/oKBEi from PacerMonitor.com.
About 243 Food
243 Food LLC operated a supermarket located at 143-60 243rd Street,
Rosedale, New York. 1134 Food LLC operated a supermarket located
at 1134 East New York Avenue, Brooklyn, New York.
243 Food, LLC and affiliate 1134 Food LLC sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D.N.Y. Case No.
22-42912 and 22-42913) on Nov. 22, 2022. In the petition signed by
its manager, Mazen A. Dayem, 243 Food disclosed up to $10 million
in both assets and liabilities.
Judge Elizabeth S. Stong oversees the cases.
Marc A. Pergament, Esq., at Weinberg, Gross & Pergament, LLP, is
the Debtors' legal counsel.
2ND CHANCE: Lantzman Says Open-Ended Plan Not Feasible
------------------------------------------------------
Secured creditors Lantzman Investments, Inc., and LMF2 LP, as
serviced by Del Toro Servicing, Inc. (servicer for Lantzman) and
FCI (servicer for LMF2), object to the confirmation of the Chapter
11 Plan and Disclosure Statement of debtor 2ND Chance Investment
Group LLC.
The Secured Creditors together hold the largest secured claim in
this estate, which claims are secured by 8 of the 14 pieces of real
estate listed in the Debtor's Disclosure Statement. Secured
Creditors' secured claims against those 8 properties total more
than $2.7 million. This combined amount comprises the bulk of the
secured claims in the estate and, as such, Secured Creditors have
standing to object to the Debtor's Chapter 11 Plan and Disclosure
Statement
Secured Creditors' Claims are listed in Class 2, as impaired, which
provides: "[the Property] shall be transferred to and subject to
the terms of the Liquidating Trust. The claimant in [Class 2] shall
be paid pursuant to the Liquidating Trust."
In addition, according to the Hypothetical Liquidation Analysis set
forth in the Disclosure Statement, pursuant to section 2.3.1 of the
proposed liquidating trust, the Debtor proposes to transfer all
trust property to the trust free and clear of any and all liens,
claims, encumbrances and interests except as set forth in the
Confirmation Order or the Plan. As a result, Secured Creditors
object to the Debtor's Chapter 11 Plan and its Disclosure Statement
on the following grounds:
* The Disclosure Statement fails to comply with statutory
requirements. In this case, the Debtor is misleading this Court
and all parties in interest by ignoring the undisputed facts,
namely, that the real properties that purport to serve as the
vehicle to fund the so-called plan shall not yield as much money as
the Debtor asserts.
* The Plan is not feasible. The Plan is not feasible and
incapable of confirmation pursuant to Section 1129(a)(11) for many
reasons. First, the estimated amounts of each of the claims of
these Secured Creditors is not yet known since they are subject to
change based upon the terms of the applicable promissory notes and
deeds of trust. Furthermore, the claims will not be paid when the
properties are sold.
* The Plan is not proposed in good faith. The Plan unfairly
deprives the secured creditor of its rights under state law,
including the right to credit bid its Claim. Also, any proceeds
from the sale of the properties subject to Secured Creditors liens
must be paid directly from the close of escrow and not turned over
to the Liquidating Trustee to hold indeterminately and paid out at
his discretion.
* The Plan cannot be confirmed because the impaired classes are
rejecting the Plan. The Secured Creditors hold the lion's share of
the claims in impair class 2 andwill vote to reject a liquidating
plan that contains the existing terms. Since other secured
creditors in class 2 have also objected to the Plan and disclosure
statement it is possible that there will be no accepting class and,
as a result, the Debtor cannot confirm a plan.
Secured Creditors further point out that they are being unlawfully
deprived of their rights as secured creditors. The liquidating
trust proposes that the liquidating trustee will sell properties
and/or make disbursements to creditors on an annual basis; is also
(by implication) provides that all sale proceeds shall go to the
liquidating trust to be dispersed by the liquidating trustee at his
discretion and after payment of administrative expenses. Secured
Creditors find this offensive for many reasons, including: (a) they
cannot be deprived of their rights as secured creditors and rather
the Secured Creditors' specific claims should be paid directly from
each escrow, pursuant to a valid beneficiary demand. The Debtor
also cannot deprive the Secured Creditors of the right to credit
bid their own claims or get paid their secured claim directly from
escrow at the close of escrow. Any plan should provide that Secured
Creditors' claim be paid directly and in full from any escrow --
there is no valid reason for a liquidating trustee to hold funds
that under all applicable law should be paid to the secured
creditor.
The Secured Creditors note there is no time limit set for the
subject real properties to be sold, and for the secured creditors'
claims to be paid in full. For secured creditors like these -- who
have already gone close to a year since receiving any payments on
their claims (and who have received no post-petition payments),
such an open-ended provision is inappropriate and should not be
countenanced.
According to the Secured Creditors, the Plan is not fair and
equitable as provided under Sections 1129(b)(1), 1129(b)(2)(A) and
1129(b)(2)(B) as it proposes an indefinite and hypothetical sale.
The liquidating plan proposes to strip these secured creditors of
their state law lien rights, without compensation, and for no good
reason. Furthermore, the Debtor's liquidation analysis attached to
the Plan and disclosure statement is flawed and fails the "best
interests of the creditors" test under Section 1129(a)(7). The
Debtor offers no other "evidence" of value but merely, please a
range of values as to each property. And, these values ignore the
amount of the secured claims against the properties.
Attorneys for the Creditors Lantzman Investments, Inc. and LMF2
LP:
James P. Hill, Esq.
Gary B. Rudolph, Esq.
Kathleen A. Cashman-Kramer, Esq.
SULLIVAN HILL REZ & ENGEL
600 B Street, 17th Floor
San Diego, CA 92101
Tel: (619) 233-4100
Fax: (619) 231-4372
About 2nd Chance Investment Group
2nd Chance Investment Group, LLC, owns in fee simple title 13 real
properties located in various locations in California and
Washington having an aggregate value of $7.02 million.
2nd Chance Investment Group sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 22-12142) on
Dec. 21, 2022. In the petition signed by its managing member,
Rayshon A. Foster, the Debtor disclosed $7,221,261 in assets and
$11,002,949 in liabilities.
Judge Scott C. Clarkson oversees the case.
Amanda G. Billyard, Esq., at Financial Relief Law Center, APC and
Grobstein Teeple, LLP serve as the Debtor's legal counsel and
financial advisor, respectively.
The U.S. Trustee for Region 16 appointed an official committee to
represent unsecured creditors in the Debtor's Chapter 11 case. The
committee is represented by Goe Forsythe & Hodges, LLP.
604KENNEDY LLC: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: 604Kennedy LLC
12359 Sunrise Valley Drive, Suite 170
Reston, VA 20191
Business Description: The Debtor is engaged in activities related
to real estate.
Chapter 11 Petition Date: July 11, 2023
Court: United States Bankruptcy Court
District of Columbia
Case No.: 23-00181
Judge: Hon. Elizabeth L. Gunn
Debtor's Counsel: Brent C. Strickland, Esq.
WHITEFORD, TAYLOR & PRESTON, L.L.P.
111 Rockville Pike, Suite 800
Rockville, MD 20850
Tel: (410) 347-9402
Email: bstrickland@whitefordlaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Naveen Vavilala as managing member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/OPPPOTA/604Kennedy_LLC__dcbke-23-00181__0001.0.pdf?mcid=tGE4TAMA
79 NICK TRAIL: Taps Craigville Realty as Real Estate Broker
-----------------------------------------------------------
79 Nick Trail LLC seeks approval from the U.S. Bankruptcy Court for
the District of Massachusetts to employ Craigville Realty Co. to
market and sell its real estate property located at 79 Nick Trail,
Mashpee, Mass.
The firm will be paid a commission of 5 percent of the gross sales
price.
As disclosed in courts filing, Craigville is a "disinterested
person" purusant to Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Craigville Realty Co.
648 Craigville Beach Rd.
Centerville, MA 02632
Tel: (508) 775-3174
About 79 Nick Trail
79 Nick Trail LLC filed a Chapter 11 bankruptcy petition (Bankr. D.
Mass. Case No. 23-10893) on June 6, 2023, with as much as $1
million in both assets and liabilities. Judge Janet E. Bostwick
oversees the case.
The Debtor is represented by Daigle Law Office.
824 NORTH DIXIE: Gets OK to Hire Charles Krblich as Accountant
--------------------------------------------------------------
824 North Dixie, Inc. and 826 North Dixie, Inc. received approval
from the U.S. Bankruptcy Court for the Southern District of Florida
to employ Charles Krblich, P.A.
The Debtors require an accountant to prepare their income tax
returns.
The firm will be paid at hourly rates ranging from $45 to $225.
Charles Krblich, a partner at Charles Krblich, P.A., 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:
Charles Krblich
Charles Krblich, P.A.
1119 SE 3rd Avenue
Fort Lauderdale, FL 33316
Tel: (954) 764-4554
About 824 North Dixie
824 North Dixie, Inc. and 826 North Dixie, Inc. filed Chapter 11
bankruptcy petitions (Bankr. S.D. Fla. Lead Case No. 23-12439) on
March 30, 2023. At the time of the filing, the Debtors reported as
much as $1 million in both assets and liabilities.
Judge Scott M. Grossman oversees the cases.
The Debtors tapped the Law Offices of Scott Alan Orth, P.A. as
bankruptcy counsel and Charles Krblich, P.A. as accountant.
AINOS INC: Receives 180-Day Extension to Regain Nasdaq Compliance
-----------------------------------------------------------------
Ainos, Inc. disclosed in a Form 8-K filed with the Securities and
Exchange Commission that it received notice from the Nasdaq Listing
Qualifications Department of The Nasdaq Stock Market LLC advising
that Staff has determined that the Company is eligible for an
additional 180 calendar day period, or until Jan. 2, 2024, to
regain compliance with its minimum bid price requirement pursuant
to the Nasdaq Listing Rule 5810(c)(3)(A).
The notification has no immediate effect on the listing of the
Company's common stock on Nasdaq. The Company has a period of an
additional 180 calendar days from the date of notification, which
occurred on July 5, 2023, or until Jan. 2, 2024 to regain
compliance with the minimum bid price requirement during which time
the Company's stock will continue to trade on Nasdaq, provided the
Company continues to meet the other applicable listing
requirements, with the exception of the bid price requirement. If
at any time during this additional time period the closing bid
price of the Company's security is at least $1 per share for a
minimum of 10 consecutive business days, the Staff will provide
written confirmation that the Company has achieved compliance with
the minimum bid price requirement.
If the Company chooses to implement a reverse stock split, the
Company must complete the split no later than 10 business days
prior to the expiration date of Jan. 2, 2024 in order to timely
regain compliance.
The Company intends to monitor the closing bid price of its common
stock and may, if appropriate, consider available options to regain
compliance with the Minimum Bid Price Requirement, including
initiating a reverse stock split. However, there can be no
assurance that the Company will be able to regain compliance with
the Minimum Bid Price Requirement or will otherwise be in
compliance with other Nasdaq Listing Rules.
About Ainos
Ainos, Inc. (www.ainos.com), formerly known as Amarillo
Biosciences, Inc., is a diversified healthcare company engaged in
the research and development and sales and marketing of
pharmaceutical and biotech products. The Company is engaged in
developing medical technologies for point-of-care testing and safe
and novel medical treatment for a broad range of disease
indications. The Company is a Texas corporation incorporated in
1984.
Ainos reported a net loss of $14.01 million for the year ended Dec.
31, 2022, compared to a net loss of $3.89 million for the year
ended Dec. 31, 2021. As of Dec. 31, 2022, the Company had $37.11
million in total assets, $2.48 million in total liabilities, and
$34.63 million in total stockholders' equity.
Houston, Texas-based PWR CPA, LLP, the Company's auditor since
2020, issued a "going concern" qualification in its report dated
March 31, 2023, citing that the Company has incurred recurring
losses and recurring negative cash flow from operating activities,
and has an accumulated deficit which raises substantial doubt about
its ability to continue as a going concern.
ALLIANCE RESOURCE: S&P Affirms 'B+' ICR, Outlook Positive
---------------------------------------------------------
S&P Global Ratings affirmed its 'B+' issuer credit rating on U.S.
thermal coal producer Alliance Resource Partners L.P. (Alliance)
and maintained the positive outlook. Its 'B+' issue-level rating
and '4' recovery rating on the senior unsecured notes are
unchanged.
The positive outlook reflects S&P's expectation that Alliance will
generate solid cash flows to fund its operations and debt reduction
plans over the next 12 months while at the same time continuing
with sizeable shareholder distributions.
S&P said, "We expect Alliance will maintain strong credit metrics,
with adequate cushion to absorb market volatility. We expect
Alliance will sustain leverage below 1x in fiscal 2023, maintaining
the trajectory of robust earnings seen since 2021, as it benefits
from current high contract pricing and volumes. Although unlikely,
given its strong contracted positions for 2023 and 2024, we believe
Alliance could sustain leverage around 1x should EBITDA decline by
45% over our forecast period, all other things being equal.
Alliance has a history of low leverage, compared to most of its
peers, given its relatively modest levels of adjusted debt, which
provides cushion to absorb earnings volatility associated with the
coal industry. For example, during a period of weak commodity
prices in fiscal 2020, Alliance's leverage deteriorated to 2.2x
from 1.8x even though its EBITDA declined by about 35% within the
same period. Within the same period, Consol Energy Inc.'s (Consol)
leverage deteriorated to 5.4x from 3.6x when its EBITDA declined by
about 40%. Peabody Energy Corp.'s (Peabody) leverage declined to
10.2x from 2.6x over the same period when its EBITDA declined by
about 75%. During the same period, Alliance's average adjusted debt
was $974 million, which was about 39% lower than Consol's average
adjusted debt of $1.59 billion and 61% lower than Peabody's $2.5
billion of average adjusted debt. We expect the cushion in
Alliance's credit metrics to increase as the company executes its
plan to reduce its gross debt using excess cash flows over the next
18-24 months.
"Alliance's significant shareholder returns in the wake of a near
term debt maturity limits our ratings. Currently, we still believe
there is refinancing risk associated with senior notes as the
company continues to prioritize shareholder distributions with
excess cash flows given our expectation of a significant increase
in its dividend payout. We expect increased shareholder
distributions in fiscal 2023 given the company's plan to pay $0.70
per share each quarter in 2023, which is almost twice the average
payout of $0.38 per quarter in fiscal 2022. At the same time, the
company has $400 million senior unsecured notes due in May 2025
(about $339 million outstanding as of June 30, 2023). Alliance
opportunistically redeemed about $61 million of the notes in the
first half of the year and plans to fully redeem the outstanding
notes before the maturity date. That said, we expect discretionary
cash flow (DCF) of about $80 million-$100 million in fiscal 2023,
after accounting for increased capital expenditure (capex) of about
$350 million-$400 million and shareholder distributions of about
$350 million-$400 million. The increased capex includes about $80
million associated with the construction of new infrastructure at
River View to access a lower-cost reserve area. Alliance is also
undertaking some additional maintenance with its longwall
operations while rebuilding a lot of its machinery. Despite these
significant undertakings, we expect Alliance will continue to
redeem its notes supported by available cash on hand ($271.3
million as of March 31, 2023) and sizeable DCF generation. Alliance
could scale back its shareholder distributions to bolster its
liquidity in stressed markets, as demonstrated in fiscal 2020 and
2021 when distributions declined by over 80% to about $51
million-$52 million compared to $278 million in 2019.
"Our assessment of Alliance's business risk incorporates its
concentration in the domestic market, where there is an increased
focus on the transition to green energy sources. Despite the
current strong market dynamics for thermal coal, we believe that
environmental factors have diminished coal's competitiveness in the
marketplace, especially in the U.S. We believe the passing of the
inflation reduction act (IRA) and increasing investor pressures
will drive growth in renewables and early retirements of coal-fired
plants. Alliance is greatly exposed to the risk of a diminishing
local market given that 87.5% of coal tons sold is into domestic
markets and thermal coal accounts for majority of the company's
EBITDA generation, representing about 86% of its fiscal 2022
segment adjusted EBITDA. As a result, our final assessment results
in a credit rating that is one notch lower than warranted by the
combination of Alliance's business and financial risk profiles.
That said, we believe the export market provides a viable path to
partially mitigate this risk. For example, Drummond Co. Inc.
exports all its thermal coal to the Asia-pacific region, Latin
America, and parts of Europe where we expect a slower transition to
green energy sources. However, this strategy would bring increased
volatility as most of the export business is done at spot pricing
compared to contract pricing for domestic contracts. Alliance
continues to increase its export business which accounted for 12.5%
of coal tons sold in fiscal 2022, compared to 3.3% in fiscal 2020.
In the first quarter of 2023, Alliance was able to push some
additional tons into the export market when some of its domestic
customers exercised their option to defer some of their contractual
volumes to later dates to take advantage of lower natural gas
prices. We anticipate increased participation in the export market
this year given the increased availability of natural gas and the
decline in prices from the historic highs of 2022.
"The positive outlook reflects our expectation that Alliance could
generate cash flows sufficient to fund increased capex and
shareholder distributions as well as debt reduction initiatives. We
expect leverage will remain below 1x over the next year, supported
by solid earnings from favorable contract pricing and volumes and
lower debt levels as the company continues to redeem its senior
notes.
"We could lower our ratings on Alliance within the next 12 months
if the company does not follow through with its debt-reduction plan
and thus, a significant portion of the senior notes remain
outstanding. We could also lower our rating on Alliance if the
company's profitability drops substantially or cash flow weakens
materially leading to our expectation of leverage sustained above
3x."
This could occur if:
-- Domestic thermal coal market conditions deteriorate sharply
without an offsetting increase in exports, resulting in a
considerable loss of volumes; or
-- The company adopts a more aggressive financial policy such as a
debt-financed shareholder distribution or acquisition.
S&P said, "We could raise our ratings on Alliance within the next
12 months if the company executes its debt-reduction plan and
redeems a significant part of the 2025 senior notes with assets in
place to fund the differential. In our assessment, we would
evaluate the adequacy of the company's cash balance to cover any
notes outstanding and the company's plans for cash deployment and
distributions."
ESG credit indicators: E-5, S-3, G-2
ALPINE 4 HOLDINGS: Issues $1.67M Convertible Note to Mast Hill
--------------------------------------------------------------
Alpine 4 Holdings, Inc. disclosed in a Form 8-K filed with the
Securities and Exchange Commission that on June 29, 2023, it
entered into a securities purchase agreement with Mast Hill,
pursuant to which the Company issued and sold to Mast Hill a senior
convertible promissory note in the aggregate principal amount of
$1,670,000, convertible into shares of the Company's Class A Common
Stock pursuant to the terms, conditions, and limitations set forth
in the Note. The Company also agreed to issue to Mast Hill (i) a
common stock purchase warrant to purchase 200,000 shares of Common
Stock, (ii) 67,400 shares of Common Stock, and 1,200,000 shares of
Common Stock as additional consideration for the purchase of the
Note, which all were deemed to be earned in full as of the Closing
Date.
The purchase price of the Note was $1,503,000, of which $1,427,880
was received by the Company after deducting certain expenses in
connection with the transaction. The Note is a senior obligation
of the Company excluding asset-based lines of credit between the
Company's subsidiaries and their lenders. Pursuant to the terms of
the Note, Mast Hill has the right at any time to convert all or any
portion of the then-outstanding amounts owed on the Note into
shares of Common Stock at the Conversion Price of $2.00, subject to
adjustment as provided in the Note. The Note includes limits on
Mast Hill's ability to convert the Note to the extent that the
issuance of the Conversion Shares would cause Mast Hill and its
affiliates to beneficially own more than 9.9% of the Company's
outstanding shares of Common Stock. The Note matures on June 29,
2024, and bears interest at a rate of 12%. Amortization payments
under the note begin in December 2023, and continue monthly until
the maturity date. There is no pre-payment penalty under the
Note.
The Warrant has a term of five years and an exercise price of $3.50
per share, subject to adjustment as provided in the Warrant, with a
floor in any adjusted exercise price limited to $2.00 per share. In
connection with the SPA, the Company and Mast Hill also entered
into a registration rights agreement. Under the Registration
Rights Agreement, the Company agreed that within 60 calendar days
from the Closing Date, the Company would use commercially
reasonable best efforts to file with the U.S. Securities and
Exchange Commission an initial registration statement covering the
resale by Mast Hill of the Transaction Shares.
JH Darbie & Co. served as the placement agent in connection with
the offer and sale of the Note under the SPA pursuant to the terms
of a placement agent agreement, dated June 15, 2023, between the
Company and JH Darbie. Pursuant to the Placement Agent Agreement,
JH Darbie will receive a cash fee of $60,120 and a warrant to
purchase 3,579 shares of the Company's Common Stock. The Placement
Agent Warrant has an exercise price of $4.50 per share, and will
terminate five years from the date of the SPA. Other than the
number of shares and the exercise price, the Placement Agent
Warrant has the same terms as the Warrant.
About Alpine 4
Alpine 4 Holdings, Inc (formerly Alpine 4 Technologies, Ltd) is a
publicly traded conglomerate that is acquiring businesses that fit
into its disruptive DSF business model of drivers, stabilizers, and
facilitators.
Alpine 4 Holdings reported a net loss of $12.87 million for the
year ended Dec. 31, 2022, compared to a net loss of $19.48 million
for the year ended Dec. 31, 2021. As of Dec. 31, 2022, the Company
had $145.63 million in total assets, $75.64 million in total
liabilities, and $69.99 million in total stockholders' equity.
Phoenix, Arizona-based RSM US LLP, the Company's auditor since
2022, issued a "going concern" qualification in its report dated
May 5, 2023, citing that the Company has suffered recurring losses
from operations and recurring negative cash flows from operations.
This raises substantial doubt about the Company's ability to
continue as a going concern.
ARTERRA WINES: S&P Downgrades ICR to 'B-', Outlook Negative
-----------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Mississauga,
Ont.-based Arterra Wines Canada Inc. to 'B-' from 'B' and its
issue-level rating on the company's first-lien term loan to 'B-'
from 'B'. The recovery rating on the loan is unchanged at '3'.
The negative outlook reflects the potential for a downgrade over
the next 12 months if Arterra's sales volumes and EBITDA margins
remain weak, leading to sustained negative FOCF and deteriorating
credit metrics and liquidity erosion.
The downgrade reflects our expectation that credit metrics will
remain elevated through fiscal 2024. Arterra's fiscal 2023 revenues
and S&P Global Ratings-adjusted EBITDA declined year over year as
the company's volume sales were affected by lower foot traffic in
company-operated retail stores. The operational performance
deterioration resulted in an increase in leverage to 14x (8.0x
excluding shareholder loans and NCE) as of year-end fiscal 2023.
S&P said, "For fiscal 2024, we expect limited growth prospects for
Arterra due to continued secular decline in global wine consumption
while demand subsides to pre-pandemic levels. In addition, we
believe there is a risk that Arterra will generate lower EBITDA
than in fiscal 2023, spurred by lower volume sales as consumer
spending softens amid an inflationary environment, especially for
highly discretionary product offerings such as wines. Although
premium wine brands (priced higher than $15 per bottle) continue to
grow, Arterra has lower exposure (about 34%) to the high-margin
premium wine segment. The company has a long-term strategy to
increase its premium wine portfolio; as a result, we do not
forecast any material impact on revenue and margins in the next 12
months. Therefore, we expect significantly increased leverage
measures in the next several quarters that will remain in the
low-14x area (low-8x, excluding loan and NCE) at the end of fiscal
2024 from our previous expectations of 11.5x-12.0x (6.5x-7.0x
excluding loan and NCE)."
S&P said, "We expect Arterra's profitability will remain pressured
in the next 12 months due to continued cost pressures. For fiscal
year-end 2023, Arterra's EBITDA margin (S&P Global
Ratings-adjusted) contracted by 70 basis points to 15.6% year over
year, mainly due to continued cost inflation including higher
international ocean freight and volatile fuel costs. The cost of
raw materials such as imported bulk wine, glass bottles, and other
packaging materials has remained high due to inflation. Some of the
increased costs during the year were partially offset by pricing
pass-through and other cost-control initiatives. In addition,
Arterra aims to improve its margins by expanding its premium wine
portfolio and further reduce costs by supply chain normalization.
Even though the cost environment is improving, there is a
six-nine-month time lag to realize cost benefits; we expect Arterra
to start showing stronger margins in the latter half of 2024.
However, unexpected delays would push back margin improvement
opportunities beyond the next 12 months. Similar to fiscal 2023, we
expect Arterra will offset some of the incremental costs in 2024
from C$15 million-C$25 million in government grants from the wine
sector support program. Nevertheless, considering the potential
risks in recouping cost increases, we forecast Arterra's 2024
EBITDA margins will remain unchanged from 15%-16% generated in
fiscal 2023.
"Arterra's adequate liquidity provides some flexibility to the
company's weak free cash flow. At the end of fiscal 2023, Arterra
maintained cash balances of C$41.6 million, compared with C$21.4
million during the same period the previous year. Combined with
about C$80 million under its revolver, the company has sufficient
near-term liquidity to cover liquidity requirements over the next
12 months. Seventy percent of the company's balance-sheet debt
obligations are hedged, and we expect cash interest costs
(including leases) will increase to about C$60 million in fiscal
2024 compared with C$48 million in fiscal 2023; nevertheless, the
increase is significantly lower when compared with Arterra's peers.
However, the increase in cash-interest costs has led a decline in
the FFO-to-cash coverage ratio to about 1.5x. In addition, given
Arterra's plans to invest in e-commerce and channel expansion to
spur higher growth and profitability, we expect ongoing capital
expenditure (capex) of at least C$25 million a year. As a result,
FOCF remains thin, and we forecast FOCF to debt will remain in the
low-single-digit percentage area.
"The negative outlook reflects a potential for a downgrade given
our expectation that Arterra's EBITDA generation and margins for
the next 12 months would be lower than in 2023 because of lower
retail volume sales and higher costs related to inflationary
headwinds. Sustained negative FOCF generation would lead to weaker
leverage and coverage measures."
S&P could lower the rating if:
-- Operating performance deteriorates such that the FFO
cash-interest coverage ratio approaches 1x (including shareholder
loans and NCE);
-- EBITDA deteriorates and FOCF remains negative over the next 12
months, leading us to assess the capital structure as
unsustainable; or
-- The company's liquidity position erodes because of cash flow
deficits, and it appears unlikely that Arterra could obtain
additional financing.
S&P said, "We could revise the outlook to stable if Arterra's
operating performance substantially improves, and leverage is
sustained below 12x (7.0x excluding shareholder loans and NCE). In
addition, we would expect the controlling shareholder to commit to
not pursuing debt-financed dividends or acquisitions that would
lead to a meaningful deterioration of credit ratios."
ESG credit indicators: E-2, S-2, G-3
S&P said, "Governance factors are a moderately negative
consideration in our credit rating analysis of Arterra, 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.
BIG DADDY GUNS: Seeks to Extend Plan Exclusivity by 120 Days
------------------------------------------------------------
Big Daddy Guns and its affiliate, Big Daddy Guns 2 Inc., ask the
U.S. Bankruptcy Court for the Northern District of Florida to
extend the exclusive periods for filing a plan of reorganization
and seeking acceptances thereof for an additional period of 120
days and 180 days, respectively.
The Debtors stated that they are actively engaged in seeking
funding for a plan of reorganization, and, going forward, working
capital. The Debtors further stated that they are actively
litigating with various creditors to determine the nature,
extent, validity and priority of claims and liens, and thus the
contours of its creditor body. Finally, the Debtors claimed that
they still need to negotiate funding of a plan, and they require
additional time to formulate and promulgate such business plan
and plan of reorganization.
The exclusive time within which the Debtors may file a plan of
reorganization is scheduled to expire on July 19, 2023, and the
exclusive time within which the Debtors may solicit acceptances
to such plan is scheduled to expire on September 18, 2023.
Big Daddy Guns and Big Daddy Guns 2 Inc. are represented by:
Robert L. Rattet, Esq.
DAVIDOFF HUTCHER & CITRON LLP
605 Third Avenue
New York, NY 10158
Tel: (914) 381-7400
Email: rlr@dhclegal.com
About Big Daddy Guns
Big Daddy Guns Inc. is a gun shop in Florida.
Big Daddy Guns and its affiliate, Big Daddy Guns 2 Inc., filed
petitions for relief under Subchapter V of Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Fla. Lead Case No. 23-10053) on
March 21, 2023. At the time of the filing, the Debtors reported
assets between $1 million and $10 million and liabilities between
$10 million and $50 million.
Judge Karen K. Specie oversees the cases.
Jose I. Moreno, P.A. is the Debtors' legal counsel.
BLOCKFI INC: 3AC Liquidators Say Plan Outline Inadequate
--------------------------------------------------------
Russell Crumpler and Christopher Farmer, in their joint capacities
as the duly authorized joint liquidators appointed in the British
Virgin Islands ("BVI") liquidation of Three Arrows Capital, Ltd.
(in liquidation) ("3AC") and foreign representatives of 3AC, as
recognized pursuant to chapter 15 of the Bankruptcy Code in the
case captioned in re Three Arrows Capital, Ltd., filed an objection
to the Disclosure Statement Relating to the First Amended Joint
Chapter 11 Plan of BlockFi Inc. and its debtor affiliates pursuant
to Chapter 11 of the Bankruptcy Code and the Debtors' motion for
entry of an order approving the adequacy of the Disclosure
Statement.
The Joint Liquidators filed proofs of claim against the Debtors
asserting, inter alia, preference claims under BVI and other
applicable law arising from transfers by 3AC to the Debtors and
loans extended by 3AC to the Debtors. Based on presently available
information, the Joint Liquidators believe their claims against the
Debtors exceed $220 million, making 3AC among the Debtors' most
significant creditors. The Debtors propose to equitably
subordinate 3AC's claims through the Plan, and if their equitable
subordination gambit fails, 3AC would be treated pari passu with
Account Holder Claims, General Unsecured Claims, and Intercompany
Claims.
The Liquidators say the Disclosure Statement Motion should be
denied for multiple reasons:
* First, the proposed confirmation procedures violate the
automatic stay applicable in 3AC's chapter 15 case. The Debtors
are stayed from pursuing equitable subordination of 3AC's claims by
the automatic stay imposed in 3AC's chapter 15 case, and the
Debtors have not sought, let alone been granted, relief from the
stay. The Joint Liquidators will file a motion to enforce the
automatic stay in 3AC's chapter 15 case, not only because the stay
applies to the Debtors' equitable subordination attempt but also
because 3AC faces equitable subordination based on identical
allegations in the chapter 11 cases of Genesis Global Holdco, LLC
and certain of its affiliates (Bankr. S.D.N.Y. Case No. 23-10062
(SHL), Docket No. 429). If the Debtors are permitted to litigate
equitable subordination of 3AC's claims in these chapter 11 cases,
3AC will face multiple equitable subordination litigations running
in parallel and adjudicating the same facts and issues before
different bankruptcy courts, which would introduce the potential
that 3AC is subject to conflicting equitable subordination rulings.
Notably, equitable subordination depends principally on the
debtor's conduct -- i.e., 3AC -- and so the issues are largely
3AC's issues and thus the same for each creditor. The
applicability of the stay to the Debtors' equitable subordination
attempt (and the same tactics by the Genesis debtors) should be
decided by the bankruptcy court overseeing 3AC's chapter 15 case
before the equitable subordination litigation may proceed (if
relief is granted at all). In light of this threshold obstacle to
litigating equitable subordination on the timeline the Debtors
propose, equitable subordination litigation should not be
adjudicated in connection with confirmation. Moreover, there is no
reason that the equitable subordination litigation must be decided
in connection with confirmation, as the Plan provides for a reserve
for distributions on account of disputed claims that are
subsequently allowed after the effective date.
* Second, even if the automatic stay were lifted, the Debtors'
proposed confirmation procedures would deprive the Joint
Liquidators of due process. The Disclosure Statement includes only
two sentences describing the factual and legal bases for equitably
subordinating 3AC's claims. DS at 46. These disclosures are devoid
of specificity and instead rely on conclusory statements that "3AC
is alleged to have been a fraud from inception" and 3AC's founders
"have taken steps to undermine the asset recovery efforts" of the
Joint Liquidators. The Disclosure Statement also fails to identify
how the Debtors' creditors were harmed by 3AC's alleged inequitable
conduct. The Debtors' meager statements do not afford the Joint
Liquidators reasonable notice of the claims against them or
sufficient information to prepare an objection to the Plan. If the
Debtors are granted relief from the stay (which the Joint
Liquidators will dispute), the Court should establish a schedule to
litigate equitable subordination that gives due consideration to
the complex factual and legal issues that equitable subordination
presents, which at a minimum begins with the Debtors filing a
complaint stating with particularity the substantive basis for
subordination combined with sufficient time for a motion to dismiss
followed by discovery to investigate and then try the merits of
those bases (whatever they may be).
* In contrast, under the Debtors' proposed procedures, the
Debtors do not propose to supplement the Disclosure Statement with
a pleading setting forth the factual and legal bases for equitable
subordination until they file their confirmation brief and reply to
objections on August 13, 2023 -- only four days before the
confirmation trial is proposed to commence -- leaving the Joint
Liquidators inadequate time to prepare a defense. And worse still,
the Debtors propose July 28, 2023 as the deadline to object to
confirmation, which means that the Joint Liquidators would be
required to object to the subordination of their claims with
nothing more to rely on than the two sentences in the Disclosure
Statement. Such a procedure turns due process on its head and
would require the Joint Liquidators to respond to claims of
equitable subordination before they have even seen the allegations
that are the basis for such claims, and then have no informed
opportunity to conduct discovery of those allegations in a targeted
and efficient manner, much less adequately prepare for trial, once
those allegations are revealed. Considering that the Plan proposes
procedures for reserving against disputed claims pending
adjudication following the effective date, it is clear that tying
the equitable subordination litigation to confirmation is designed
to deprive the Joint Liquidators of reasonable notice and
opportunity to present a defense to subordination. Accordingly,
the Disclosure Statement Motion should not be approved absent
additional protections to ensure that the Joint Liquidators are
afforded due process.
* Finally, the statements in the Disclosure Statement regarding
the Debtors' proposed litigation with respect to significant
disputed claims, including 3AC's claims, fail to provide creditors
adequate information to make their own judgment on the viability of
the Debtors' strategy. The Debtors acknowledge that litigation
regarding these disputed claims "will make a positive or negative
difference to client recoveries of over $1 billion, orders of
magnitude larger than any other issue facing BlockFi and its
Clients" and consequently, failure to prevail in litigation "could
be catastrophic for the Estates and Clients." DS at 14-15. And yet,
the Disclosure Statement fails to explain the factual or legal
basis for the Debtors' claims with the level of specificity needed
for creditors to make an informed judgment about the Debtors'
litigation position—for example, it does not disclose the basis
for equitable subordination against noninsiders such as 3AC and the
harm that unsecured creditors allegedly suffered as a result of
3AC's actions. Considering that the disputed claims litigation is
the largest driver of creditor recoveries (according to the
Debtors), the Disclosure Statement is inadequate and should not be
approved absent more fulsome disclosure regarding the substantive
basis for disputing the claims.
The Joint Liquidators have attempted to engage the Debtors in
settlement discussions to explore whether a consensual resolution
may be achievable without the need for costly, time-consuming
litigation, and to that end have requested to participate in the
ongoing mediation. The Debtors have rejected the Joint
Liquidators' request to participate in mediation and have not
otherwise meaningfully engaged with the Joint Liquidators on the
merits and treatment of their claims.
Counsel to the Foreign Representatives of Three Arrows Capital,
Ltd. (in liquidation):
Adam S. Ravin, Esq.
Adam J. Goldberg, Esq.
Christopher Harris, Esq.
Brett M. Neve, Esq.
Nacif Taousse, Esq.
LATHAM & WATKINS LLP
1271 Avenue of the Americas
New York, NY 10020
Telephone: (212) 906-1200
Facsimile: (212) 751-4864
E-mail: adam.ravin@lw.com
adam.goldberg@lw.com
christopher.harris@lw.com
brett.neve@lw.com
nacif.taousse@lw.com
- and -
Nima H. Mohebbi, Esq.
Tiffany M. Ikeda, Esq.
LATHAM & WATKINS LLP
355 South Grand Avenue, Suite 100
Los Angeles, CA 90071
Telephone: (213) 485-1234
Facsimile: (213) 891-8763
E-mail: nima.mohebbi@lw.com
tiffany.ikeda@lw.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 counsels; Walkers (Bermuda) Limited as special
Bermuda counsel; Cole Schotz, P.C., as local counsel; Berkeley
Research Group, LLC as financial advisor; Moelis & Company as
investment banker; and Street Advisory Group, LLC as strategic and
communications advisor. Kroll Restructuring Administration, LLC is
the notice and claims agent.
BOX OUT STUDIO: Case Summary & Three Unsecured Creditors
--------------------------------------------------------
Debtor: bOx Out Studio, LLC
2213 10th St NW
Washington, DC 20011
Business Description: The Debtor is engaged in activities
related to real estate. The Debtor owns
two real properties in Washington, DC,
valued at $1.95 million in total.
Chapter 11 Petition Date: July 11, 2023
Court: United States Bankruptcy Court
District of Columbia
Case No.: 23-00182
Debtor's Counsel: Maurice Verstandig, Esq.
THE BELMONT FIRM
1050 Connecticut NW, Suite 500
Washington, DC 20036
Email: mac@mbvesq.com
Total Assets: $1,950,030
Total Liabilities: $1,709,559
The petition was signed by Arnold Gaither as managing member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's three unsecured creditors is available for
free at PacerMonitor.com at:
https://www.pacermonitor.com/view/XNUWBLY/bOx_Out_Studio_LLC__dcbke-23-00182__0001.0.pdf?mcid=tGE4TAMA
BULGARIAN BAR: Has Until Aug. 10 to File Plan and Disclosures
-------------------------------------------------------------
Judge Jil Mazer-Marino has entered an order that Bulgarian Bar Inc.
d/b/a BG Bar Inc.'s time period to file a Chapter 11 Plan of
Reorganization and Disclosure Statement is extended to and
including August 10, 2023.
The extension of the time period granted is without prejudice to
such further requests that may be made pursuant to Section 1121(e)
of the Bankruptcy Code by the Debtors or any party in interest, for
cause shown, upon notice and a hearing.
About Bulgarian Bar
Bulgarian Bar, Inc., sought protection for relief under Chapter 11
of the Bankruptcy Code (Bankr. E.D.N.Y. Case No. 22-40264) on Feb.
15, 2022, listing as much as $500,000 in both assets and
liabilities. Judge Jil Mazer-Marino presides over the case.
Alla Kachan, Esq., at the Law Offices of Alla Kachan P.C. and
Wisdom Professional Services, Inc., serve as the Debtor's legal
counsel and accountant, respectively.
CHRISTMAS TREE SHOPS: Winds Down After Lenders Withdrew Funding
---------------------------------------------------------------
Jonathan Randles of Bloomberg Law reports that discount retailer
Christmas Tree Shops Inc. has begun shutting down its business
after dwindling sales prompted lenders to withdraw funding for its
Chapter 11 case.
Christmas Tree Shops is negotiating a budget with lenders to
continue funding payroll and other operating expenses as it
conducts going-out-of-business sales, the company's lawyer Harold
Murphy said during a court hearing Friday. A lawyer representing
the retailer's unsecured creditors said they're preparing for a
liquidation.
The store closings come little more than two months after Christmas
Tree Shops filed bankruptcy with hopes of finding an investor that
could fund a restructuring or going-concern sale.
About Christmas Tree Shops
Christmas Tree Shops is a home-decor retailer that was spun off
from Bed Bath & Beyond in 2020.
Christmas Tree Shops Inc. sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Del. Case No. 23-10576) on May 5,
2023. In its petition, the Debtor reports between $50 million and
$100 million in assets and between $100 million and $500 million in
debt.
The Debtor's counsel:
Evelyn J. Meltzer
Troutman Pepper Hamilton Sanders, LLP
302-777-6500
evelyn.meltzer@troutman.com
COLONY DONKEY: Court OKs Interim Cash Collateral Access
-------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Texas,
Sherman Division, authorized Colony Donkey, LLC to use cash
collateral on an interim basis in accordance with the budget.
Pearl Capital and Rewards Network may assert liens on the Debtor's
operations. The secured creditors assert liens on, among other
things, the inventory generated by the Debtor.
As adequate protection Pearl Funding and Rewards Network are
granted replacement liens under 11 U.S.C. section 552, to the
extent of any diminishment in the value of One World Bank or the
Texas Comptroller's interest in such cash collateral, in accordance
with their existing priority.
A hearing on the matter is set for August 1, 2023 at 9:30 a.m.
A copy of the order and the Debtor's budget is available at
https://urlcurt.com/u?l=lFBp1l from PacerMonitor.com.
The Debtor projects $190,000 in income and 143,997 in total
expenses for 30 days.
About Colony Donkey, LLC
Colony Donkey, LLC owns and operates a restaurant in The Colony,
Texas.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Tex. Case No. 23-41174) on July 3,
2023. In the petition signed by Jessica Putnam, managing member,
the Debtor disclosed up to $50,000 in assets and up to $500,000 in
liabilities.
Judge Brenda T. Rhoades oversees the case.
Eric A. Liepins, Esq., represents the Debtor as legal counsel.
CORUS ENTERTAINMENT: S&P Lowers ICR to 'BB-' on Higher Leverage
---------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on
Toronto-based Corus Entertainment Inc. to 'BB-' from 'BB'. S&P also
lowered its issue-level rating on the company's secured debt to
'BB+' from 'BBB-' and its rating on the unsecured debt to 'BB-'
from 'BB'. The recovery ratings are unchanged.
The stable outlook indicates S&P's forecast that Corus' leverage
will improve and stabilize close to 4x by fiscal 2024, reflecting
the potential recovery in advertising as macroeconomic conditions
improve.
S&P said, "We expect the company's leverage will remain above our
4x downside threshold for the next 12 months. Corus' net leverage
(S&P Global Ratings-adjusted) is expected to increase to about 4.5x
in 2023 from 3.2x in 2022. The increase is due to a significant
drop in Corus' high-margin advertising revenue amid difficult
macroeconomic conditions, elevated expenditures due to Canadian
content spending (including catch-up spending), and higher
programming costs to support U.S. studio output deals. However, we
expect some deleveraging in 2024, as advertising revenue recovers
due to an improving economy and the company realizes benefits from
its cost savings initiatives. In addition, the company targets a
conservative financial policy (2.5x net debt to EBITDA) and is
exploring noncore asset sales. Therefore, we expect Corus' reported
discretionary cash flow will be marginally positive in fiscal 2024,
which will allow the company to voluntarily reduce its debt.
However, the risk remains that sustained macroeconomic weakness,
combined with the secular declines in broadcast TV subscriber
numbers and increased costs to support new programming, could cause
the company's EBITDA and, subsequently, free cash flow to
underperform our expectations in 2024, leading Corus to sustain net
leverage above 4.5x."
Advertising spending continues to soften. S&P Global Economics
forecasts subdued GDP growth in 2023 and 2024 in Canada. The weak
economy, with slowing consumer spending, has resulted in a pullback
in advertising spending. Although S&P sees digital advertising
exhibiting strength, both traditional TV and radio advertising
showed decline over a similar period. Therefore, S&P forecasts
Corus' consolidated TV advertising revenues to fall in the 10%-15%
percentage area. Given advertising revenues' higher margin and
proportion of sales, TV EBITDA margins will continue to be
pressured, with current margins at 25% (last 12 months ended May
31, 2023) compared with about 34% the year before.
Corus' consolidated advertising volatility is somewhat ameliorated
by the increased use of digitized data-driven advertising
technology (audience segment selling initiatives and automated
buying platform Cynch, as well as dynamic advertising insertion
within video on demand [VOD]). The company's increasing proportion
of optimized advertising revenue (53.2% this quarter versus 47.3% a
year ago) reflects the ongoing transition to more targeted and
automated offerings from traditional advertising buys. However, in
our view, optimized advertising does not fully offset the secular
traditional TV advertising revenue losses, thus pressuring
company's profitability, which may be sustained in the longer
term.
New content development and Corus' over-the-top strategies will
pressure near-term profitability but could support revenue growth
in the longer term. To monetize content without investing
significant capital, Corus continues to share content through
different platforms: hybrid live/on-demand streaming product
(STACKTV), subscription VOD (SVOD; Teletoon+), advertising VODs
(AVOD; Global TV app), and free ad-supported streaming TV (FAST;
Pluto TV). Three additional Disney channels on STACKTV reflect the
success of the bundle in a competitive market. However, new
platform revenue (subscription and advertisement) for the last year
has remained close to 10%-11% of TV revenue and indicates the
intensifying competition among streaming platforms. To retain and
increase subscribers on both traditional and digital platforms, the
company needs to continue investment in creating new content while
catching up on Canadian content spending as regulated by the
Canadian government. Against the current economic backdrop, we
forecast the higher investments will pressure EBITDA and cash flows
in the next 12 months but likely support TV revenues (both
advertising and subscriber fees) in the longer term.
The stable outlook reflects S&P's view that in spite of current
headwinds and high debt-to-EBITDA ratio, Corus' leverage will
stabilize close to 4x by fiscal 2024. In addition, the company's
recent dividend reduction and plan to use discretionary operating
cash flow for debt repayment should support leverage metrics as the
company faces EBITDA decline in the near term.
S&P could further lower the rating in the next 12 months if Corus'
adjusted debt to EBITDA is sustained above 4.5x. S&P believes this
scenario could result from:
-- A continued steep drop in advertising revenue through 2024
-- Sustained secular shifts in media consumption and advertising
moving away from traditional outlets that could lead to
significantly lower EBITDA and profitability.
S&P said, "Although unlikely in the near term, we could lower the
rating if the company shifts its financial policy away from debt
reduction.
"Although highly unlikely in the next 12 months, we could raise the
rating if Corus is able to substantially improve its competitive
position in a secular declining industry through its various new
initiatives, resulting in improvements in its operating and
financial performance, leading it to sustain adjusted debt to
EBITDA at or below 3.5x. At the same time, we would expect Corus
will commit to stronger credit measures when taking material
shareholder distribution into consideration for it to be
commensurate with a higher rating."
ESG credit indicators: E-2, S-2, G-2
ESG factors have no material influence on S&P's credit rating
analysis of Corus.
COTTLE CHRIST: Taps Caldwell & Riffee as Legal Counsel
------------------------------------------------------
Cottle Christ L, LLC seeks approval from the U.S. Bankruptcy Court
for the Northern District of West Virginia to employ Caldwell &
Riffee, PLLC as legal counsel.
The firm's services include:
a. provide the Debtor legal advice with respect to its powers
and duties as a Debtor-in-Possession;
b. assist the Debtor on avoiding unfair loans on accounts
receivable;
c. participate at the first meeting of creditors;
d. negotiate, as necessary, any adequate protection payments;
e. investigate causes of action, including the possibility of
fraudulent transfers to certain lenders; and
f. perform such other legal services as necessary to carry out
the forgoing.
The firm will be paid at an hourly rate of $375 and will be
reimbursed for out-of-pocket expenses incurred.
Joseph Caldwell, Esq., at Caldwell &Riffee, PLLC, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Joseph W. Caldwell, Esq.
Caldwell &Riffee, PLLC
P.O. Box 4427
Charleston, WV 25364
Tel: (304) 925-2100
Fax: (304) 925-2193
Email: jcaldwell@caldwellandriffee.com
About Cottle Christ L, LLC
Cottle Christi L, LLC filed a petition under Chapter 11, Subchapter
V of the Bankruptcy Code (Bankr. N.D. W.Va. Case No. 23-00295) on
June 16, 2023, with $1 million to $10 million in both assets and
liabilities. Christi L. Walls, owner and managing member, signed
the petition.
Joseph W. Caldwell, Esq., at Caldwell & Riffee is the Debtor's
legal counsel.
CRESCENT ENERGY: S&P Upgrades ICR to 'B+', Outlook Stable
---------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on U.S.-based
oil and gas exploration and production (E&P) company Crescent
Energy Co. to 'B+' from 'B'. At the same time, S&P raised its
issue-level rating on Crescent's senior unsecured debt to 'BB-'
from 'B+'.
The stable outlook reflects S&P's view that Crescent Energy will
maintain relatively flat production from its overall portfolio,
while sustaining funds from operations (FFO)/debt of over 45%,
generating positive discretionary cash flow and maintaining
adequate liquidity.
The upgrade reflects Crescent Energy's expanded size and scale,
increased operatorship, and improved leverage. Following the
closing of the Western Eagle Ford acquisition in early July,
Crescent's proven reserve base is close to 675 million barrels of
oil equivalent (boe) and its production is over 150,000 boe per
day. In addition, Crescent's percentage of operated production is
now around 75%, providing it greater control over the pace of
development on its properties. At the same time, due to the
increase in production and expected improvements in economies of
scale, S&P now estimates Crescent's FFO to debt will exceed 45%
next year, along with discretionary cash flow (DCF) to debt in the
5% to 10% range.
S&P said, "We no longer consider Crescent to be controlled by a
financial sponsor. In addition, KKR has sold about half of its KKR
fund managed shares, bringing public ownership of Crescent to 46%.
We expect KKR will retain its 16% stake in the company that it
holds as a principal investment, which it has held for over 11
years. Although we still view KKR as having control of Crescent
through its preferred voting rights, we now view the investment as
a long-term holding of KKR, with a more conservative financial
policy and longer investment horizon than investments made through
its managed funds. As a result, we revised our assessment of
Crescent's financial risk to significant from aggressive. Note, we
continue to view Liberty Mutual's 22% stake in the company as a
long-term holding.
"Although improved, leverage remains higher than for most of its
'BB-' rated peers, due in part to Crescent's acquisition-focused
strategy. Although we expect FFO/debt to improve above 45% next
year, this lags 'BB-' rated peers such as SM Energy Co. and Chord
Energy Corp., for whom we estimate FFO/debt to exceed 100%. In
part, this is due to Crescent's historically more aggressive
acquisition strategy, through which it has made three to four
acquisitions per year. We believe that acquisitions will remain a
key driver of Crescent's near-term growth, although the pace of
deals may subside as it begins to establish a track record of
developing its operated assets.
"The stable outlook reflects our view that Crescent Energy will
hold production relatively flat, while sustaining FFO/debt of over
45%, generating positive discretionary cash flow and maintaining
adequate liquidity. We expect additional acquisitions to be funded
with a balance of debt and equity.
"We could lower the rating if Crescent's credit ratios weaken such
that FFO to debt declines below 45% on a sustained basis, or if the
company significantly outspends free cash flow. This would most
likely occur if commodity prices decline below our expectations and
the company fails to reduce its spending levels accordingly, or if
production falls short of our expectations. We could also lower our
rating if Crescent Energy pursues a large, debt-financed
acquisition that does not add to its near-term cash flow or
increases its distributions beyond its internally generated cash
flow.
"We could raise our rating on Crescent Energy if it increases its
scale and profitability to levels more in line with higher-rated
peers, while bringing FFO to debt above 60% for a sustained period.
This would most likely occur if the company is able to efficiently
develop its operated assets, and use discretionary cash flow to pay
down debt."
ESG credit indicators: E-4, S-2, G-3
S&P said, "Environmental factors are a negative consideration in
our credit rating analysis because the E&P industry contends with
accelerating energy transition and the increasing adoption of
renewable energy sources. We believe falling demand for fossil
fuels will lead to declining profitability and returns for the
industry as it fights to retain and regain investors that seek
higher return investments. The company committed to reducing Scope
1 greenhouse gas (GHG) emissions by 50% by 2027 (from a 2021
baseline), as well as to maintain methane emissions intensity of
below 0.2%.
"Governance is a moderately negative consideration. Although we no
longer consider Crescent as being controlled by a private-equity
sponsor, we believe Crescent's control by KKR & Co. Inc. (through a
16% ownership stake and preferred voting rights) heightens the risk
of corporate decision making that prioritizes the interests of its
controlling owners over debt holders."
CROWN COMMERCIAL: Court OKs Cash Collateral Access Thru Sept 7
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois,
Eastern Division, authorized Crown Commercial Real Estate and
Development, LLC to use cash collateral on an interim basis in
accordance with the budget.
The Debtor and Rialto Capital Advisors, LLC, have agreed to the
terms of a 17th interim order permitting the Debtor's continued
cash collateral access.
Rialto is the Special Servicer and Attorney-in-Fact for secured
creditor, U.S. Bank National Association, as Trustee for the
benefit of the holders of Morgan Stanley Capital I Inc., Commercial
Mortgage Pass-Through Certificates, Series 2012-05.
The Debtor stipulates and agrees to continue operating its business
and pay expenses only in accordance with the terms of the interim
order through September 7, 2023.
Bank of America made a loan to the Debtor in the original principal
amount of $27.450 million, pursuant to a loan agreement dated June
26, 2012. The Loan is evidenced by a promissory note dated June
26, 2012, made by the Debtor and payable to the order of the
Original Lender.
To secure repayment of the Loan, the Debtor executed and delivered
to the Original Lender a Mortgage, Assignment of Leases and Rents,
and Security Agreement dated as of June 26, 2012, encumbering the
Debtor's real property, a real property improved by a shopping
center commonly known as Chatham Village Square Shopping Center,
located at 87th Street and Cottage Grove Avenue, Chicago, IL 60619,
recorded with the Cook County Recorder of Deeds on July 20, 2012,
as document number 1220213054.
As further security for the Loan, the Debtor granted the Original
Lender a lien on all of its personal assets. On June 29, 2012, the
Original Lender perfected its security interest in the Debtor's
assets by filing a UCC Financing Statement with the Illinois
Secretary of State identifying Crown Commercial as the debtor and
the Original Lender as the secured party.
On July 2, 2012, the Original Lender negotiated the Note to the
order of Rialto pursuant to an allonge and delivered the Note with
the Allonge to Rialto.
On August 8, 2012, the Original Lender assigned the Mortgage to
Morgan Stanley Capital I Inc., Commercial Mortgage Pass-Through
Certificates, Series 2012-05, by executing and delivering to the
Lender an Assignment of Mortgage, Assignment of Leases and Rents,
and Security Agreement, which was recorded with the Cook County
Recorder of Deeds on September 10, 2012, as document number
1225408405.
On August 30, 2012, Rialto perfected its security interest in the
Debtor's assets by filing a UCC Financing Statement Amendment with
the Illinois Secretary of State identifying Crown Commercial as the
debtor and the Lender as the secured party, as subsequently
continued by filing of those UCC Financing Statement Amendments on
September 6, 2012, January 11, 2017, and January 18, 2022.
As of the Petition Date, the Debtor owed Rialto $22,874,831.
The Debtor offers, as adequate protection of the Lender's interest
in the cash Collateral, monthly payments of interest as they were
due pre-petition in accordance with the Loan Documents, and the
Court's condition that the Debtor uses the cash collateral only in
accordance with the budget during the Interim Period. Additionally,
the Debtor agrees the Lender's security interest and liens in the
Collateral will create a valid lien on and security interest in all
of the Debtor's property acquired or generated after the Petition
Date, but solely to the same validity, extent, and priority, and of
the same kind and nature, as the liens and security interests of
the Lender securing the Obligations to the Lender under the Loan
Documents.
The Debtor will ensure the payment of all personal property taxes,
real property taxes, sales taxes, payroll taxes, insurance,
maintenance expenses, and payroll/wages in connection with
preserving the Property coming due during the Interim Period.
These events constitute an "Event of Default":
a. The Debtor's failure to maintain appropriate insurance for
the Collateral;
b. Except for disclosed payments made following the Petition
Date through the date of the Order, if the Debtor pays obligations
not showing on the Budget without the Lender's prior written
consent or further Court order or exceeds the Budget amounts by
more than 15%;
c. The Debtor fails to provide, when due, any reports or
accounting information reasonably required by the Agreed Interim
Order; or
d. Any termination by the Court of the Debtor's use of cash
collateral.
A further interim hearing on the matter is scheduled for September
6 at 10 a.m.
A copy of the order is available at https://urlcurt.com/u?l=pGvo6H
from PacerMonitor.com.
About Crown Commercial
Crown Commercial Real Estate and Development, LLC, operates a
shopping center located at 87th Street and Cottage Grove Avenue,
Chicago, IL 60619. The Property consists of a shopping center
owned and operated for 25 years by Crown Commercial.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ill. Case No. 22-05113) on May 3,
2022. In the petition signed by Musa P. Tadro, manager, the Debtor
disclosed up to $50,000 in assets and up to $50 million in
liabilities.
Judge Janet S. Baer oversees the case.
The Law Offices of Konstantine Sparagis is the Debtor's counsel.
CSR WORLDWIDE: Court OKs Cash Collateral Access Thru July 14
------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Oklahoma
authorized CSR Worldwide, Inc. to use cash collateral on an interim
basis in accordance with the budget and its agreement with Bank of
Hays, through July 14, 2023.
The Debtor needs to use funds in order to make payroll due before
July 7, 2023. The payroll amount is authorized in an amount equal
$22,000 with a variance allowed of 10%.
As previously reported by the Troubled Company Reporter, the Debtor
stipulated that the Lender holds a valid, binding, and
first-priority leasehold mortgage and security interest in all of
the Debtor's real and personal property rights securing the
Debtor's obligations to the Lender, which obligations include
unpaid principal indebtedness of $5.3 million, unpaid interest
accrued through May 11, 2023 in the amount of $372,257, together
with all other amounts claimed to be due from the Debtor as set
forth in the Lender's Petition filed in Adair County District Court
case no. CJ2023-36.
The Lender was willing to allow the Debtor to sell Pre-Petition
Collateral consisting of 428,000 pounds of HD Reprocessed Pellets
for the net sales price of $85,600 and to use the Sales Proceeds to
pay the "Authorized Payments" listed on the budget.
As security for the use of the Funds, the Lender retains all
protections afforded to it as contained in the First Interim Cash
Collateral Order and will be granted a replacement lien in the used
Funds as additional adequate protection.
All other terms of the First Interim Cash Collateral Order will
remain in full force and effect.
A final hearing on the use of cash collateral is continued to July
14, 2023 at 1:30 pm to be conducted by telephone.
A copy of the order is available at https://urlcurt.com/u?l=0U5LP2
from PacerMonitor.com.
About CSR Worldwide OK, Inc.
CSR Worldwide OK, Inc. sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D. Okla. Case No. 23-80391) on June
6, 2023. In the petition signed by CEO Troy Don Burgess, the Debtor
disclosed $7,099,094 in assets and $7,130,915 in liabilities.
Judge Paul R. Thomas oversees the case.
Ron Brown, Esq., and R. Gavin Fouts, Esq., at Brown Law Firm PC,
represent the Debtor as legal counsel.
Bank of Hayes, as lender, is represented by, Thomas A. Creekmore
III, Esq. at Hall Estill Hardwick Gable Golden and Nelson PC.
DELTA WHOLESALE: Richardo Kilpatrick Named Subchapter V Trustee
---------------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed Richardo Kilpatrick,
Esq., at Kilpatrick & Associates, P.C. as Subchapter V trustee for
Delta Wholesale Tire Center, Inc.
Mr. Kilpatrick will be paid an hourly fee of $375 for his services
as Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Kilpatrick declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Richardo I. Kilpatrick, Esq.
Kilpatrick & Associates, P.C.
903 N. Opdyke Rd., Ste. C.
Auburn Hills, MI 48326
Phone: (248) 377-0700
Fax: (248) 377-0800
Email: rkilpatrick@kaalaw.com
About Delta Wholesale
Delta Wholesale Tire Center, Inc. filed a petition under Chapter
11, Subchapter V of the Bankruptcy Code (Bankr. E.D. Mich. Case No.
23-31065) on June 29, 2023, with $100,001 to $500,000 in assets and
$500,001 to $1 million in liabilities.
Judge Joel D. Applebaum oversees the case.
The Debtor is represented by George E. Jacobs, Esq., at Bankruptcy
Law Offices.
DESTINED PROPERTIES: Gets OK to Hire Prosystem as Accountant
------------------------------------------------------------
Destined Properties, LLC received approval from the U.S. Bankruptcy
Court for the District of Utah to employ Prosystem Accounting as
accountant.
The firm will be paid at the rate of $150 per hour for its services
and will be reimbursed for out-of-pocket expenses incurred.
As disclosed in court filings, Prosystem is a "disinterested
person" pursuant to Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Matt Farmer
Prosystem Accounting
444 South Main St. Suite C6
Cedar City, UT 84720
Tel: (801) 819-2028
About Destined Properties
Destined Properties, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Utah Case No. 23-22264) on May 31,
2023. In the petition signed by James L. Haslem, authorized
representative, the Debtor disclosed $1 million to $10 million in
both assets and liabilities.
Judge William T. Thurman oversees the case.
The Debtor tapped Jeremy C. Sink, Esq., at Kirton McConkie as legal
counsel and Prosystem Accounting as accountant.
DIOCESE OF ALBANY: Committees Tap OneDigital as Consultant
----------------------------------------------------------
The official committees representing unsecured creditors and tort
claimants of The Roman Catholic Diocese of Albany, New York seek
approval from the U.S. Bankruptcy Court for the Northern District
of New York to employ OneDigital Investment Advisors, LLC.
The committees require a special investment consultant to:
Phase 1: Discovery
-- connect with appropriate individuals at the investment
office of the RCDOA;
-- identify the individual investment pools associated with
the RCDOA;
-- identify the investment managers and custodians for the
investment pools;
-- review of appropriate investment policy documents
associated with the investment pools; and
-- request for investment trust statements and performance
reports for each pool;
Phase 2: Written Report
-- arrange assets, by pool, according to The Financial
Accounting Standards Board (FASB) framework for fair value
hierarchy;
-- comment on adherence for the respective pools' investment
policy;
-- comment on liquidity flexibility of the underlying assets
in the pools;
-- comment on trading expense, market conditions, or other
external factors to maintain market positions; and
-- utilizing established prudent best practices for investment
management, comment on time horizon, risk, exposure, liquidity.
The firm will be compensated at $200 per hour.
Thomas Zamiara, a partner at OneDigital, disclosed in a court
filing that his firm is a "disinterested person" pursuant to
Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Thomas F. Zamiara
OneDigital Investment Advisors LLC
11 Centre Park, Suite 303
Rochester, NY 14614
Tel: (585) 246-3750
Email: Thomas.zamiara@onedigital.com
About The Roman Catholic Diocese of Albany,
New York
The Roman Catholic Diocese of Albany is a religious organization in
Albany, N.Y. It covers 13 counties in Eastern New York, including a
portion of a 14th county. Its Mother Church is the Cathedral of the
Immaculate Conception in the city of Albany.
New York's Child Victims Act, which took effect in August 2019,
temporarily sets aside the usual statute of limitations for
lawsuits to give victims of childhood sexual abuse a year to pursue
even decades-old claims. Hundreds of new lawsuits have been filed
against churches and other institutions since the law took effect
on Aug. 14, 2019.
Facing the financial weight of new sexual misconduct lawsuits, at
least four of the eight Roman Catholic dioceses in the state, has
already sought Chapter 11 protection. The dioceses that have
declared bankruptcy include the Diocese of Rochester and the
Diocese of Rockville Centre on Long Island.
The Catholic Diocese of Albany sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. N.D.N.Y. Case No. 23-10244) on
March 15, 2023. In the petition filed by Fr. Robert P. Longobucco,
the Debtor estimated assets between $10 million and $50 million and
liabilities between $50 million and $100 million.
Judge Robert E. Littlefield, Jr. oversees the case.
The Debtor tapped Nolan Heller Kauffman, LLP as bankruptcy counsel;
Tobin and Dempf, LLP as special litigation counsel; Keegan Linscott
& Associates, PC as financial advisor; and Bonadio & Co., LLP as
accountant. Donlin, Recano & Company, Inc. is the claims and
noticing agent.
On April 17, 2023, the U.S. Trustee for Region 2 appointed two
separate committees to represent unsecured creditors and tort
claimants in the Debtor's Chapter 11 case. Lemery Greisler, LLC
represents the unsecured creditors' committee while Stinson, LLP
represents the tort committee. OneDigital Investment Advisors, LLC
is the committees' special investment consultant.
DIOCESE OF ROCKVILLE CENTRE: Wants Abuse Claims Consolidated
------------------------------------------------------------
Rick Archer of Law360 reports that the Roman Catholic Diocese of
Rockville Centre is seeking to consolidate New York state court
sexual abuse suits against its schools and parishes into a federal
mass tort, saying it is the only way to efficiently handle claims
"inextricably intertwined" with its own Chapter 11 case.
About The Roman Catholic Diocese
of Rockville Centre, New York
The Roman Catholic Diocese of Rockville Centre, New York, is the
seat of the Roman Catholic Church on Long Island. The Diocese has
been under the leadership of Bishop John O. Barres since February
2017. The State of New York established the Diocese as a religious
corporation in 1958. The Diocese is one of eight Catholic
dioceses
in New York, including the Archdiocese of New York. The Diocese's
total Catholic population is approximately 1.4 million, roughly
half of Long Island's total population of 3.0 million. The Diocese
is the eighth largest diocese in the United States when measured by
the number of baptized Catholics.
To deal with sexual abuse claims, the Roman Catholic Diocese of
Rockville Centre, New York, filed a Chapter 11 petition (Bankr.
S.D.N.Y. Case No. 20-12345) on Sept. 30, 2020, listing as much as
$500 million in both assets and liabilities. Judge Martin Glenn
oversees the case.
The Diocese tapped Jones Day as legal counsel, Alvarez & Marsal
North America, LLC, as restructuring advisor, and Sitrick and
Company, Inc., as communications consultant. Epiq Corporate
Restructuring, LLC is the claims agent.
The U.S. Trustee for Region 2 appointed an official committee of
unsecured creditors in the Diocese's Chapter 11 case. The
committee tapped Pachulski Stang Ziehl & Jones, LLP and Ruskin
Moscou Faltischek, PC as its bankruptcy counsel and special real
estate counsel, respectively.
Robert E. Gerber, the legal representative for future claimants of
the Diocese, is represented by the law firm of Joseph Hage
Aaronson, LLC.
DIOCESE OF SANTA ROSA: Exclusivity Period Extended to January 5
---------------------------------------------------------------
Judge Charles Novack of the U.S. Bankruptcy Court for the
Northern District of California extended The Roman Catholic
Bishop of Santa Rosa's exclusive periods to file a plan of
reorganization and to solicit acceptances thereof to January 5,
2024 and March 4, 2024, respectively.
The Roman Catholic Bishop of Santa Rosa is represented by:
Paul J. Pascuzzi, Esq.
Jason E. Rios, Esq.
Thomas R. Phinney, Esq.
FELDERSTEIN FITZGERALD
WILLOUGHBY PASCUZZI & RIOS LLP
500 Capitol Mall, Suite 2250
Sacramento, CA 95814
Tel: (916) 329-7400
Email: ppascuzzi@ffwplaw.com
jrios@ffwplaw.com
tphinney@ffwplaw.com
About The Roman Catholic Bishop of Santa Rosa
The Roman Catholic Bishop of Santa Rosa is a diocese, or
ecclesiastical territory, of the Roman Catholic Church in the
northern California region of the United States, named in honor
of St. Rose of Lima.
Abuse victims filed hundreds lawsuits after the state of
California paused for three years its statute of limitation on
claims for child sexual abuse. The pause ended on Dec. 31, 2022.
Facing more than 200 new legal claims over childhood sexual
abuse, the Roman Catholic Bishop of Santa Rosa, also known as the
Diocese of Santa Rosa, filed a Chapter 11 petition (Bankr. N.D.
Calif. Case No. 23-10113) on March 13, 2023. The Debtor
estimated $10 million to $50 million in both assets and
liabilities.
The Hon. Charles Novack is the case judge.
The Debtor tapped Felderstein Fitzgerald Willoughby Pascuzzi &
Rios, LLP as bankruptcy counsel; GlassRatner Advisory & Capital
Group, LLC as financial advisor; and Donlin, Recano & Company,
Inc. as claims agent. Shapiro Galvin Shapiro & Moran, Weinstein &
Numbers, LLP, and Foley & Lardner, LLP serve as special counsels.
The U.S. Trustee for Region 17 appointed an official committee to
represent unsecured creditors in the Debtor's Chapter 11 case.
Stinson, LLP and Berkeley Research Group, LLC serve as the
committee's legal counsel and financial advisor, respectively.
DIXON TOWN HOMES: Taps Law Office of Lewis Phon as Counsel
----------------------------------------------------------
Dixon Town Homes, LLC seeks approval from the U.S. Bankruptcy Court
for the Northern District of California to employ The Law Office of
Lewis Phon as counsel.
The Debtor requires legal counsel to:
-- assist with the preparation of bankruptcy schedules;
-- provide with advice and counseling as to the Chapter 11
bankruptcy proceedings;
-- respond to court documents and pleadings;
-- prepare a Chapter 11 plan and disclosure statement;
-- attend court hearings on the Debtor's behalf; and
-- prepare a final decree.
The firm will be paid at the rate of $375 per hour.
In addition, the firm will receive reimbursement for out-of-pocket
expenses incurred.
The retainer fee is $20,000.
Lewis Phon, Esq., a partner at The Law Office of Lewis Phon,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Lewis Phon, Esq.
The Law Office of Lewis Phon
4040 Heaton Court
Antioch, CA 94509
Tel: (925) 470-8551
Fax: (925) 706-7600
Email: lewisphon@att.net
About Dixon Town Homes
Dixon Town Homes LLC, a company in Sacramento Calif., filed its
voluntary petition for Chapter 11 protection (Bankr. N.D. Cal. Case
No. 23-40682) on June 14, 2023, with as much as $1 million to $10
million in both assets and liabilities. Waqar Khan as president,
signed the petition.
Judge William J. Lafferty oversees the case.
The Law Office of Lewis Phon serves as the Debtor's legal counsel.
EAST BROADWAY: BOH Updates Plan Amid New Lease, New Tenant
----------------------------------------------------------
Secured creditor Bank of Hope filed a Fourth Amended Chapter 11
Plan of Liquidation and a Fourth Amended Disclosure Statement in
the Chapter 11 case of East Broadway Mall, Inc.
The Debtor operates a commercial mall at 88 East Broadway in the
city of New York. The Debtor has operated the land and the Mall
pursuant to a commercial lease agreement with the City of New York
and the Department of Citywide.
The Plan is the blueprint for the liquidation and distribution of
the Debtor's assets for the benefit of the Debtor's creditors.
The Plan provides for the assumption and assignment of the Debtor's
remaining interest in the Lease to the Approved New Tenant in
accordance with the provisions of the Term Sheet and the June 22,
2022 Stipulation and Order. In late summer 2022, the Debtor
submitted a revised proposal to the City and BOH for the Debtor to
be permitted to remain as the tenant under the Lease pursuant to
certain proposed amendments. BOH was thereafter advised that the
City determined to reject the Debtor's revised proposal, and
preferred to go forward with the assignment to Broadway East Group,
LLC, as the Approved New Tenant.
On Dec. 5, 2022, BOH filed a motion seeking approval of a prior
disclosure statement and other related relief, and would later
submit two additional versions of the disclosure statement. While
that motion was pending, two additional parties expressed interest
in becoming the Approved New Tenant. With the Court's guidance,
BOH and the City determined that the best approach would be to
receive best and final offers from all three parties. Because
negotiations were ongoing, the Court denied the original motion and
entered an order directing any party, including BOH, to file a
motion for approval of a disclosure statement and plan by April 28,
2023.
BOH and the City reached out to the interested parties, as well as
the Debtor, and requested their best and final offers by April 11,
2023. Each interested party timely submitted its best and final
offer by the deadline. BOH and the City collectively determined
that Broadway East Group, LLC, had submitted the highest and best
offer. The City and BOH will therefore go forward with the
assignment to Broadway East Group, LLC as the Approved New Tenant.
BOH has therefore filed the Plan in order to effectuate the
transaction with Broadway East Group, LLC, as the Approved New
Tenant.
BOH reserves the right to propose additional changes to the Plan in
accordance with a Plan Supplement that will be filed on or prior to
the deadline for filing the Plan Supplement and hearing on
confirmation of the Plan. The Plan Supplement will identify the
Approved New Tenant, including details of the Approved New Tenant
and Term Sheet and/or New Lease.
BOH believes the Plan will provide the best possible return to
holders of claims and interests and is in the best interests of the
Debtor, its creditors, and interest holders.
Upon the Effective Date, the Debtor's remaining interest in the
Lease shall be assumed and assigned to the Approved New Tenant,
Broadway East Group, LLC, or such other Approved New Tenant as may
be agreed to by BOH and the City as disclosed in the Plan
Supplement before the Confirmation Hearing, except that effective
on the Effective Date the terms of the Lease shall be governed by
the form of New Lease that has been substantially negotiated and
agreed to by the Approved New Tenant and the City and BOH would
receive a portion of the consideration in exchange for releasing
its lien on the Lease. The original term sheet and the signed
offer letter dated April 11, 2023 modifying those terms, which have
been accepted by BOH and the City. The material terms of the New
Lease include the following:
* New Lease Term: 30 years (20-year initial term plus 10-year
renewal term)
* Space: East Broadway Mall, 88 East Broadway, New York, NY (the
"Property")
* Rent Concession: No rent for first 16 months after lease
effective date
* PILOT Concession: No Pilot during rent concession period
* PILOT: After conclusion of rent concession period, PILOT will
start based on actual Department of Finance assessment
* PILOT Escalation: PILOT payments are based on actual
Department of Finance assessment
* Initial Rent Amount: After conclusion of rent concession
period, annual rent shall be $450,000 payable in monthly
installments
* Rent Escalation: 3% annual rent escalation commencing on the
3rd anniversary of the Effective Date until the expiration of the
lease, including the renewal term.
* Rent Security: 3 months' rent
* Improvement Amount: Approved New Tenant will invest a minimum
of $5,000,000 self-funded to improve the building.
* Certain agreed upon capital and aesthetic improvements to the
interior and façade of the building must be completed prior to
conclusion of the rent concession period, and proof of the
expenditure on the required improvements in the agreed-upon amount
must be demonstrated to DCAS.
* Existing subtenants: Approved New Tenant shall agree to
continue to rent to the existing subtenants at their existing
rental rate for a minimum of two years, with a possible third year,
with the rental to increase third year in proportion to increase to
annual base rent of ground lease.
* Lump Sum Payments in Aggregate of $4,000,000 by Approved New
Tenant:
- Payment to Bank of Hope: $2,000,000 to be made upon Agreement
Effective Date. - Payment to City: $2,000,000, to be made as agreed
between the City and Approved New Tenant
* BOH agrees that its receipt of the BOH Payment from Approved
New Tenant will be in partial satisfaction of the BOH Claim and all
amounts due, or to become due, under the Loan Documents.
* Upon BOH's receipt of the BOH Payment from Approved New
Tenant, BOH shall release all mortgage liens on the Premises, and
BOH shall exchange mutual general releases, releasing the City and
the Approved New Tenant.
* All future rent, including PILOT and base rent payments under
the New Lease shall be made to the City as Landlord.
* Upon receipt of the City Payment from the Approved New Tenant,
the City will be in full and final satisfaction of the City Claim.
The City shall waive any and all rejection damages, and any other
pre-petition and post-petition claims and rights to payment with
respect to the rejected Lease, subject to obtaining any required
approvals, authorizations and consents of governmental and other
entities.
* BOH, the City, and the Approved New Tenant will share equally
(in respective 1/3 amounts) the Administrative Expenses incurred to
consummate the Plan. For purposes of the New Lease and the Plan,
the legal fees incurred by BOH to consummate the plan shall be
treated as such Administrative Expenses. If the parties cannot come
to an agreement as to the amount of any such expenses, then the
Court shall retain jurisdiction to determine and approve the
amount.
* BOH, the City, and the Approved New Tenant will share equally
(in respective 1/3 amounts) responsibility for the payment of
allowed Administrative Expenses and Allowed Priority Claims,
including governmental tax claims. The City intends to pay its
portion of such allowed claims and expenses from the funds received
from the Approved New Tenant under the New Lease. To the extent
arrangements have not been made between the City and the Approved
New Tenant regarding the timing of receipt of such funds, the City
will make other arrangements which will be disclosed in the Plan
Supplement.
Community relations issues are also being worked through to
finalize the New Lease. On June 20, 2023, the land use subcommittee
of the community board held a meeting at which they approved the
plans for the New Lease. Thereafter, on June 27, 2023, the full
community board reviewed the plans for the New Lease and approved
it. An additional step remains for the parties to make a
presentation of the New Lease at a borough board meeting. The
parties expect that such a presentation to the borough board will
occur by September 2023 at the latest. The Plan proponents do not
anticipate that this process will interfere with the implementation
of the Plan and understands that the City will provide an update on
the outcome of that meeting as soon as possible.
BOH reserves the right to propose additional changes to this Plan
in accordance with a Plan Supplement. The terms are subject to
modification as may be agreed by BOH and the City as disclosed in
the Plan Supplement that will be filed on or prior to the deadline
for filing the Plan Supplement and before the Confirmation
Hearing.
Under the Plan, Class 4 Non-Priority Unsecured Claims consist of
unsecured claims that are not "priority" unsecured claims,
including the Super-Priority adequate protection claim of BOH
(Class 4A), the Claim of the City, which will be waiving its Claim
in order to allow other Unsecured Creditors to receive Distribution
under the Plan, and any other any other unsecured Claims that are
not "priority" unsecured claims, including the unsecured deficiency
claim of BOH and any unsecured claims listed in Debtor's Petition
under Schedule F approximately in the amount of $35,000.00 and for
any other filed Proofs of Claims that become allowed Claims (Class
4B). Class 4C is a Convenience class for any Creditor in classes 2,
3, or 4 that elect to receive a 10% distribution on its Allowed
Claim capped at $2,000.
Class 4A BOH Super-Priority Adequate Protection Claim as per Final
Cash Collateral Order will receive a distribution of Estate assets
on account of Allowed Claim after claims in classes 1, 2, 3B, and
4C are paid in full. Class 4A is impaired.
Class 4B City Claim and other Unsecured Claims (including BOH's
unsecured deficiency claim) will waive its Lease cure claim for the
benefit of other Creditors except as provided in the Plan. Other
Creditors will receive their pro rata distribution of Estate assets
on account of Allowed Claims after claims 1, 2, 3B, 4A and 4C are
paid in full. Class 4B is impaired.
Class 4C Convenience, a Creditor may elect to receive a
distribution as part of class 4C on the Effective Date equal to 10%
of its allowed claim capped at $2000. Creditors will recover 10% of
their claims. Class 4C is impaired.
Attorneys for Bank of Hope:
James M. Sullivan, Esq.
Robert J. Malatak, Esq.
WINDELS MARX LANE & MITTENDORF, LLP
156 West 56th Street
New York, NY 10019
Telephone (212) 237-1000
E-mail: jsullivan@windelsmarx.com
rmalatak@windelsmarx.com
A copy of the Fourth Amended Disclosure Statement dated July 5,
2023, is available at https://tinyurl.ph/qMFfn from
PacerMonitor.com.
About East Broadway Mall
East Broadway Mall, Inc., operates a commercial mall located at 88
East Broadway in the City, County and State of New York. On March
1, 1985, the Company entered into a 50-year lease commercial lease,
with the City through the New York City Department of General
Services for use of land beneath the Manhattan Bridge. Upon
execution of the lease, the Company expended more than $1 million
to construct a mall on the land.
East Broadway Mall, Inc., sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 19-12280) on July 12,
2019. In the petition signed by its president, Grace Chan, the
Debtor was estimated to have assets and debts of less than $50,000.
The Debtor hired Sferrazza & Keenan, PLLC, as counsel, and The
Carey Group LLC, as special counsel.
ENERGY DRILLING: Amends Liquidating Plan
----------------------------------------
Energy Drilling Services, LLC, submitted a First Amended Plan of
Liquidation for Debtor Under Subchapter V of Chapter 11 of the
Bankruptcy Code.
This Plan is a liquidating plan, which proposes to pay creditors of
the Debtor from the proceeds received in connection with the
orderly liquidation of the Debtor's assets. The assets of the
Debtor, with the exception of the Debtor's Causes of Action, cash,
and intangibles, are being sold to EMA in a private sale under the
Plan. As a general summary of the sale terms, EMA has agreed to
assume all of the Debtor's secured debt as identified by various
Adequate Protection Stipulations and Orders and with the exception
of the Secured Claim held by Harbor Road Ventures, LLC. EMA will
purchase the tangible assets which serve as part of the collateral
for the Harbor Road Ventures, LLC loan as of June 1, 2023. EMA has
agreed to pay the Debtor a total of $100,000 for the use of the
Debtor's equipment, forms, and tooling and for a release of any and
all Chapter 5 claims Debtor may have against EMA.
The Debtor's intangibles (other than Causes of Action) have no
value and these assets will be abandoned. After liquidation is
complete, the Debtor will distribute its cash and the proceeds
obtained from pursuit of Causes of Action to Creditors as set forth
in the Plan.
Under the Plan, Class XIII consists of the holders of Allowed
Unsecured Claims. Each Holder of Class XIII Claims will receive a
Pro Rata distribution attributable to its Allowed General Unsecured
Claim based on the funds the Debtor has on hand at the conclusion
of the liquidation process. This Class is impaired.
Attorney for the Debtor:
Zachary R. Tucker, Esq.
WINEGARDEN, HALEY, LINDHOLM, TUCKER & HIMELHOCH, P.L.C.
9460 S. Saginaw Rd., Suite A
Grand Blanc, MI 48439
Tel: (810) 579-3600
E-mail: ztucker@winegarden-law.com
A copy of the First Amended Plan of Liquidation dated July 5, 2023,
is available at https://tinyurl.ph/WHyvF from PacerMonitor.com.
About Energy Drilling Services
Del Sol Deliverys, LLC, sought Chapter 11 bankruptcy protection
(Bankr. W.D. Tex. Case No. 23-50147) on Feb. 10, 2023. In the
petition signed by Ariel Alvarez Diaz, manager, the Debtor
disclosed $260,047 in total assets and $1,082,588 in total
liabilities.
Judge Craig A. Gargotta oversees the case.
William R. Davis, Jr., Esq., at Langley & Banack, Inc. and
Calderone Advisory Group, LLC are the Debtor's legal counsel and
financial advisor, respectively.
FARADAY FUTURE: To Limit Authorized Shares Available for Issuance
-----------------------------------------------------------------
Faraday Future Intelligent Electric Inc. announced an additional
proposal for the recently announced special meeting of stockholders
to limit the Company's authorized shares available for issuance.
The Board of Directors of the Company approved an additional
proposal for approval by the Company's stockholders at the upcoming
special meeting. The previously disclosed proposal to effect a
reverse stock split of the Company's common stock at a ratio
between 1-for-2 and 1-for-90 would hold the existing authorized
shares unchanged, effectively expanding the total authorized shares
by the same multiple as the reverse stock split. The new
additional proposal is designed to cap the increase in the total
additional authorized shares at six times the post reverse split
shares authorized assuming the previously disclosed reverse stock
split proposal is approved and the reverse stock split is
implemented. The Company expects to file an amended preliminary
proxy statement that includes such authorized share cap proposal
shortly.
This decision showcases FF's commitment to its shareholders and
dedication to aligning corporate policies with investor interests.
"Following extensive discussions and thorough consideration of
feedback, the board has chosen to implement this significant change
in an effort to balance the company's strategic needs while
addressing the concerns of our shareholders," said XF Chen, CEO of
Faraday Future. "This crucial change symbolizes our commitment to
maintaining strong corporate governance and enhancing shareholder
value."
As previously disclosed, the reverse stock split ratio will be
determined by the Board after stockholder approval. The Board
reserves the right to elect not to proceed with the reverse stock
split if it determines that implementing a reverse split is no
longer in the best interests of the Company and its stockholders.
The Company is still in its growth and production ramp-up phase.
The Company believes that the stockholders' approval of the reverse
stock split proposal will improve the Company's fundamentals across
the board, ushering in the best opportunity to introduce
institutional and strategic investors.
The authorized share cap proposal is being proposed to, among other
reasons, help the Company maintain alignment with market
expectations regarding the number of authorized shares of the
Company's common stock in comparison to the number of shares issued
or reserved for issuance following any reverse stock split, and
ensure that the Company does not have what certain stockholders
might view as an unreasonably high number of authorized shares
which are not issued or reserved for issuance.
The Company is grateful for its stockholders' continued support and
feedback. As co-creation is at the core of Faraday's Future's
philosophy, the Company welcomes stockholders' continued
involvement in jointly growing the business and disrupting the
automotive industry.
About Faraday Future
Gardena, CA-based Faraday Future (NASDAQ: FFIE) --
http://www.ff.com-- is a luxury electric vehicle company. The
Company has pioneered numerous innovations relating to its
products, technology, business model, and user ecosystem since
inception in 2014. Faraday Future aims to perpetually improve the
way people move by creating a forward-thinking mobility ecosystem
that integrates clean energy, AI, the Internet.
Faraday Future reported a net loss of $552.07 million for the year
ended Dec. 31, 2022, a net loss of $516.50 million for the year
ended Dec. 31, 2021, compared to a net loss of $147.08 million for
the year ended Dec. 31, 2020.
New York, NY-based Mazars USA LLP, the Company's auditor since
2022, issued a "going concern" qualification in its report dated
March 9, 2023, citing that the Company has incurred operating
losses since inception, has continued cash outflows from operating
activities, and has an accumulated deficit. These conditions raise
substantial doubt about its ability to continue as a going concern.
FUSE GROUP: Sells $50K Convertible Notes to Liu Marketing
---------------------------------------------------------
Fuse Group Holding Inc. disclosed in a Form 8-K filed with the
Securities and Exchange Commission that it entered into a
Convertible Promissory Notes Purchase Agreement with Liu Marketing
(M) Sdn. Bhd., a company organized under the laws of Malaysia.
Pursuant to the Agreement, the Company sold a Convertible
Promissory Note to the Purchaser with a principal amount of
$50,000. The Note bears interest at the rate of 3% per annum,
which are payable on June 29 of 2024 and 2025. The Note will
mature on the date that is twenty-four months from the date that
the purchase price of the Note is paid to the Company. Any
outstanding principal and interest on the Note may be converted to
the shares of common stock of the Company at the holder's option at
a conversion price of $0.45 per share at any time until the total
outstanding balance of the Note is paid. The Note was sold to the
Purchaser pursuant to an exemption from registration under
Regulation S, promulgated under the Securities Act of 1933, as
amended.
Meanwhile, on June 30, 2023, the Company received a written notice
from Liu Marketing (M) SDN BHD, pursuant to certain Convertible
Promissory Notes made by the Company in favor of the Lender on Feb.
15, 2022, March 23, 2022, June 9, 2022, July 1, 2022, Aug. 19,
2022, Oct. 6, 2022, Nov. 7, 2022, Dec. 16, 2022, Jan. 30, 2023,
Feb. 24, 2023, April 10, 2023 and May 29, 2023, that the Lender
elected to convert all of the Notes balances (including principal
and interest of the Notes) of $716,767 for 1,592,816 shares of
common stock of the Company at the conversion price of $0.45 per
share. The details of the Notes have been disclosed in the interim
reports and/or periodic reports of the Company filed with SEC. The
Shares will be issued to the Lender pursuant to an exemption from
registration under Regulation S, promulgated under the Securities
Act of 1933, as amended.
About Fuse Group
Headquartered in Arcadia, CA, Fuse Group Holding Inc. currently
explores opportunities in mining. On Dec. 6, 2016, the Company
incorporated Fuse Processing, Inc. in the State of California.
Processing seeks business opportunities in mining and is currently
investigating potential mining targets in Asia and North America.
Fuse Group is the sole shareholder of Processing.
Fuse Group reported a net loss of $444,492 for the year ended Sept.
30, 2022, compared to a net loss of $1.02 million for the year
ended Sept. 30, 2021. As of Dec. 31, 2022, the Company had
$130,069 in total assets, $671,670 in total liabilities, and a
total stockholders' deficit of $541,601.
Diamond Bar, California-based KCCW Accountancy Corp., the Company's
auditor since 2022, issued a "going concern" qualification in its
report dated Dec. 28, 2022, citing that as of Sept. 30, 2022, the
Company had recurring losses from operations, an accumulated
deficit, and a negative cash flows from operating activities. As
such there is substantial doubt about its ability to continue as a
going concern.
FUTURE VALUE: Logan Investments Says Debtor's Plan Not Confirmable
------------------------------------------------------------------
Creditor, Logan Investments, Inc., as agent for Robert Korda,
Trustee of the Survivor's Trust created under the Robert and Rosina
Korda Living Trust dated August 28, 2002, filed an objection to
debtor Future Value Construction Inc.'s, Disclosure Statement filed
with First Amended Chapter 11 Plan of Reorganization Dated May 26,
2023.
Logan submits that the Debtor's Disclosure Statement does not
contain "adequate information" as required by Section 1125(a)(1) of
the Bankruptcy Code (11 U.S.C. section 1125(a)(1)). More
disconcerting, the Disclosure Statement is patently inadequate and
should have been withdrawn along with the Plan without requiring
creditors to respond thereto since the entire Plan is premised upon
the Debtor's obtaining a $7,000,000 super-priority, priming
"Debtor-in-Possession" loan from Legalist, Inc. The Debtor's
motion seeking approval of such financing was withdrawn by the
Debtor on June 28, 2023. Despite Logan's requests, Debtor
determined that it would not withdraw the Disclosure Statement
forcing Korda and other creditors to incur the unnecessary costs of
filing responses thereto.
Logan points out that the Disclosure Statement fails to: (1)
provide background information regarding Debtor's financial history
or information regarding the real properties or the claims secured
thereby; (2) offers a blank statement of valuation of its real and
personal property, but without any basis for such valuations and
without any information on the current status of development of the
real properties; (3) similarly offers projected income and
expenses, but with no basis or support for the costs or the
proceeds to be derived from the real properties; (4) provide clear
statement or analysis of the secured claims on a property by
property basis so that creditors can evaluate their claims as well
as the Debtor's proposed treatment under the Plan; and (5) the
proposed plan does not appear to be confirmable as it patently
violates the absolute priority rule under Bankruptcy Code section
1129(b)(2) (11 U.S.C. section 1129(b)(2)).
As of the petition date, November 28, 2022, Korda owed $2,684,026.
Interest continues to accrue on Korda's debt at the rate of $1,806
per day from and after November 28, 2022. Logan has serious
questions regarding the Debtor's valuation of the Development Lots
and the Residential Lots and whether it will be sufficient to
satisfy the claims of secured creditors -- let alone unsecured
creditors -- from subsequent sales or refinancings. For that
reason, Logan is desirous of expediting Debtor's case and reducing
expenses wherever possible. However, the Debtor fails to provide
adequate information from which Korda and other creditors can reach
an informed decision on the proposed plan of reorganization. Logan
submits that proceeding with the currently proposed Plan and
Disclosure Statement will not expedite this proceeding.
Attorneys for Logan Investments, Inc.:
Simon Aron, Esq.
WOLF, RIFKIN, SHAPIRO, SCHULMAN & RABKIN, LLP
11400 West Olympic Boulevard, 9th Floor
Los Angeles, CA 90064-1582
Tel: (310) 478-4100
Fax: (310) 479-1422
E-mail: saron@wrslawyers.com
About Future Value Construction
Future Value Construction, Inc., is engaged in the business of
constructing custom and semi-custom homes.
Future Value Construction filed a Chapter 11 bankruptcy petition
(Bankr. E.D. Cal. Case No. 22-12016) on Nov. 28, 2022, with up to
$50,000 in assets and up to $10 million in liabilities.
Judge Jennifer E. Niemann oversees the case.
The Debtor is represented by the Law Office of D. Max Gardner.
GAUCHO GROUP: Extends "Outside Date" for Execution of Ground Lease
------------------------------------------------------------------
Gaucho Group Holdings, Inc., through its wholly owned subsidiary,
Gaucho Ventures I - Las Vegas, LLC, executed a Fourth Amendment to
the Amended and Restated Limited Liability Company Agreement of LVH
Holdings LLC to extend the outside date for execution of the ground
lease from June 30, 2023 to December 29, 2023.
As previously disclosed, on June 16, 2021, the Company, through
GVI, entered into the Amended and Restated Limited Liability
Company Agreement of LVH; on Nov. 16, 2022, entered into the First
Amendment to the Amended and Restated Limited Liability Company
Agreement of LVH; on June 7, 2022, entered into the Second
Amendment to the Amended and Restated Limited Liability Company
Agreement of LVH; and on Dec. 12, 2022, entered into the Third
Amendment to the Amended and Restated Limited Liability Company
Agreement of LVH.
About Gaucho Group
Headquartered in New York, NY, Gaucho Group Holdings, Inc. --
http://www.algodongroup.com-- was incorporated on April 5, 1999.
Effective Oct. 1, 2018, the Company changed its name from Algodon
Wines & Luxury Development, Inc. to Algodon Group, Inc., and
effective March 11, 2019, the Company changed its name from Algodon
Group, Inc. to Gaucho Group Holdings, Inc. Through its wholly
owned subsidiaries, GGH invests in, develops and operates real
estate projects in Argentina. GGH operates a hotel, golf and tennis
resort, vineyard and producing winery in addition to developing
residential lots located near the resort. In 2016, GGH formed a
new subsidiary and in 2018, established an e-commerce platform for
the manufacture and sale of high-end fashion and accessories. The
activities in Argentina are conducted through its operating
entities: InvestProperty Group, LLC, Algodon Global Properties,
LLC, The Algodon - Recoleta S.R.L, Algodon Properties II S.R.L.,
and Algodon Wine Estates S.R.L. Algodon distributes its wines in
Europe through its United Kingdom entity, Algodon Europe, LTD.
Gaucho Group reported a net loss of $21.83 million for the year
ended Dec. 31, 2022, compared to a net loss of $2.39 million for
the year ended Dec. 31, 2021. As of March 31, 2023, the Company
had $21.01 million in total assets, $8.60 million in total
liabilities, and $12.40 million in total stockholders' equity.
New York, NY-based Marcum LLP, the Company's auditor since 2013,
issued a "going concern" qualification in its report dated April
17, 2023, citing that the Company has a significant working capital
deficiency, has incurred significant losses and needs to raise
additional funds to meet its obligations and sustain its
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
GENESIS GLOBAL: Morton Says Plan Disclosures Inadequate
-------------------------------------------------------
David Morton, a party in interest, filed an objection to Genesis
Global Holdco, LLC, et al.'s Disclosure Statement for Amended Joint
Plan Under Chapter 11 of the Bankruptcy Code.
Morton and Debtor GGC ("GGC") are parties to a Master Loan
Agreement, dated November 8, 2021, pursuant to which Morton
obtained one or more loans from GGC. Pursuant to the Master Loan
Agreement, and solely to serve as security for Claimant's
obligation to repay the loans, Claimant delivered 18.00 Bitcoin
(the "Collateral") to GGC. The Collateral delivered by Claimant to
the Debtor remains the property of the Claimant and not GGC.
Pursuant to the Master Loan Agreement, GGC is obligated to return
the Collateral to Morton upon his repayment of the loans he
obtained from GGC.
According to Morton, GGC's failure to return to the Collateral to
Claimant has damaged Claimant in the amount of at least 18.00
Bitcoin. The value of the Collateral far exceeds the amount
outstanding on Claimant's loans from GGC.
Morton points out that the Disclosure Statement does not contain
"adequate information" as required under Section 1125(b) of the
Bankruptcy Code because the Disclosure Statement and Plan appended
to it do not address, either specifically or by class or other
category, the disposition of Morton's Bitcoin that he delivered to
GGC as collateral. The Disclosure Statement, at page 8, describes
the Debtors' lending and borrowing service as one of their primary
lines of business under which customers could enter into "bespoke"
loan terms, but that the service has been "paused" since November
2022. The Disclosure Statement does not indicate the Debtors'
intentions with respect to digital currency delivered to them as
collateral for loans made by them to customers of the lending and
borrowing service. That the Disclosure Statement and Plan do not
address the disposition of Bitcoin delivered to GGC as collateral
for loans made by GGC is surprising given Morton's understanding
through his counsel's discussions with counsel for GGC and the
Official Committee of Unsecured Creditors that there are numerous
other customers of GGC similarly situated to Morton.
Attorneys for David Morton:
Patrick Collins, Esq.
Martin G. Bunin, Esq.
FARRELL FRITZ, P.C.
400 RXR Plaza
Uniondale, NY 11556
Tel: (516) 227-0700
Fax: (516) 336-2232
About Genesis Global
Genesis Global Holdco, LLC, through its subsidiaries, and Global
Trading, Inc., provide lending and borrowing, spot trading,
derivatives and custody services for digital assets and fiat
currency.
Genesis Global Capital, LLC (GGC) and Genesis Asia Pacific PTE.
LTD. (GAP) provide lending and borrowing, spot trading, derivatives
and custody services for digital assets and fiat currency. Genesis
Global Holdco, LLC owns 100% of GGC and GAP.
Genesis Global Holdco, LLC, GGC and GAP each filed a voluntary
petition for relief under Chapter 11 of the Bankruptcy Code (Bankr.
S.D.N.Y. Lead Case No. 23-10063) on Jan. 19, 2023. The cases are
pending before the Honorable Sean H. Lane.
At the time of the filing, Genesis Holdco reported $100 million to
$500 million in both assets and liabilities.
Genesis Holdco is a sister company of Genesis Global Trading, Inc.
("GGT") and 100% owned by Digital Currency Group, Inc. ("DCG").
GGT, DCG and certain of the Holdco subsidiaries are not included in
the Chapter 11 filings. The non-debtor subsidiaries include Genesis
UK Holdco Limited, Genesis Global Assets, LLC, Genesis Asia (Hong
Kong) Limited, Genesis Bermuda Holdco Limited, Genesis Custody
Limited ("GCL"), GGC International Limited ("GGCI"), GGA
International Limited, Genesis Global Markets Limited, GSB 2022 II
LLC, GSB 2022 III LLC and GSB 2022 I LLC.
The Debtors tapped Cleary Gottlieb Steen & Hamilton, LLP as
bankruptcy counsel; Morrison Cohen, LLP as special counsel; Alvarez
& Marsal Holdings, LLC as financial advisor; and Moelis & Company,
LLC as investment banker. Kroll Restructuring Administration, LLC
is the Debtors' claims and noticing agent and administrative
advisor.
The ad hoc group of creditors is represented by Kirkland & Ellis,
LLP and Kirkland & Ellis International, LLP. The ad hoc group of
Genesis lenders is represented by Proskauer Rose, LLP.
The U.S. Trustee for Region 2 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases. The
committee tapped White & Case, LLP as bankruptcy counsel; Houlihan
Lokey Capital, Inc. as investment banker; Berkeley Research Group,
LLC as financial advisor; and Kroll as information agent.
GIGA-TRONICS INC: Incurs $2.5 Million Net Loss in First Quarter
---------------------------------------------------------------
Giga-Tronics Incorporated filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $2.45 million on $8.72 million of revenues for the three months
ended March 31, 2023, compared to a net loss of $510,000 on $7.24
million of revenues for the three months ended March 31, 2022.
As of March 31, 2023, the Company had $38.75 million in total
assets, $28.71 million in total liabilities, and $10.04 million in
total stockholders' equity.
Giga Tronics said, "The Company has incurred recurring net losses
and operations have not provided cash flows. In view of these
matters, there is substantial doubt about our ability to continue
as a going concern. The Company intends to finance its future
development activities and its working capital needs largely
through the sale of equity securities with some additional funding
from other sources, including term notes until such time as funds
provided by operations are sufficient to fund working capital
requirements.
"Our primary sources of liquidity have historically been funded by
our parent company, Ault. The extent of continued support from
Ault is not assured as we seek additional financing from third
parties. There is substantial doubt that we will have sufficient
cash to meet our needs over the next 12 months. Our ability to
obtain additional financing is subject to several factors,
including market and economic conditions, our performance and
investor and lender sentiment with respect to us and our industry.
If we are unable to raise additional financing in the near term as
needed, our operations and production plans may be scaled back or
curtailed and our operations and growth would be impeded."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/0000719274/000095017023032002/giga-20230331.htm
About Giga-tronics Inc.
Headquartered in Dublin, California, Giga-Tronics Inc. is a
publicly held company, traded on the OTCQB Capital Market under the
symbol "GIGA". Giga-tronics -- http://www.gigatronics.com--
manufactures specialized electronic equipment for use in both
military test and airborne operational applications. The Company's
operations consist of two business segments, those of its wholly
owned subsidiary, Microsource Inc., and those of its Giga-tronics
Division. The Company's Microsource segment designs and
manufactures custom microwave products for military airborne
applications while the Giga-tronics Division designs and
manufactures real time solutions for RADAR/EW test applications.
Giga-Tronics reported a net loss of $18.42 million for the year
ended Dec. 31, 2022, compared to a net loss of $2.86 million for
the year ended Dec. 31, 2021.
New York, New York-based Marcum LLP, the Company's auditor since
2021, issued a "going concern" qualification in its report dated
May 11, 2023, citing that the Company has incurred significant
losses and needs to raise additional funds to meet its obligations
and sustain its operations. These conditions raise substantial
doubt about the Company's ability to continue as a going concern.
GOBO LTD: Exclusivity Period Extended to October 27
---------------------------------------------------
Judge Mina Nami Khorrami of the U.S. Bankruptcy Court for the
Southern District of Ohio extended Gobo, Ltd.'s exclusive period
in which to file a plan and solicit acceptances thereof to
October 27, 2023 and December 26, 2023, respectively.
Gobo, Ltd. is represented by:
Myron N. Terlecky, Esq.
John W. Kennedy, Esq.
STRIP, HOPPERS, LEITHART, MCGRATH & TERLECKY CO., LPA
575 South Third Street
Columbus, OH 43215-5759
Tel: (614) 228-6345
Email: mnt@columbuslawyer.net
jwk@columbuslawyer.net
About Gobo Ltd.
Gobo, Ltd. is an Ohio limited liability company, which owns and
operates real estate located at 4000 Horizons Drive, Columbus,
Ohio. It is owned by Donald A. Lee and his wife Cheryl B. Lee.
Gobo, Ltd. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Ohio Case No. 23-50619) on March 1,
2023, with up to $10 million in both assets and liabilities. Mr.
Lee, president of Gobo, Ltd., signed the petition.
Judge Mina Nami Khorrami oversees the case.
Strip Hoppers Leithart McGrath and Terlecky Co., LPA represent
the Debtor as legal counsel.
GREEN POINT: Seeks to Hire Jacobs P.C. as Legal Counsel
-------------------------------------------------------
Green Point Management Systems, LLC seeks approval from the U.S.
Bankruptcy Court for the Eastern District of New York to employ
Jacobs P.C. as its legal counsel.
The Debtor requires legal counsel to:
a. assist in administering the Debtor's Chapter 11 case;
b. making such motions or taking such action as may be
appropriate or necessary under the Bankruptcy Code;
c. take such steps as may be necessary for the Debtor to marshal
and protect the estate's assets;
d. negotiate with creditors in formulating a plan of
reorganization for the Debtor;
e. draft and prosecute the confirmation of the Debtor's plan of
reorganization; and
f. render such additional services as the Debtor may require in
this case.
The firm will be paid at these rates:
Counsels $500 to $1,200 per hour
Associates $400 to $800 per hour
Paralegals $125 to $200 per hour
In addition, the firm will receive reimbursement for out-of-pocket
expenses incurred.
The initial retainer is $1,738.
Leo Jacobs, Esq., a partner at Jacobs P.C., 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:
Leo Jacobs, Esq.
Jacobs P.C.
595 Madison Avenue, 39th Floor
New York, NY 10022
Tel: (212) 229-0476
Email: leo@jacobspc.com
About Green Point Management Systems
Green Point Management Systems, LLC filed a petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No.
23-71078) on March 29, 2023, with $10 million to $50 million in
assets and $500,000 to $1 million in liabilities. Adam Rosen,
managing member, signed the petition.
Judge Nancy Hershey Lord oversees the case.
The Debtor is represented by Leo Jacobs, Esq., at Jacobs P.C.
GREEN ROADS: Seeks to Extend Plan Exclusivity by 120 Days
---------------------------------------------------------
Green Roads Inc. asks the U.S. Bankruptcy Court for the Southern
District of Florida to extend its exclusive periods to file a
chapter 11 plan and solicit acceptances thereof by 120 days each.
The Debtor stated that it has more than 20 creditors and operates
a business in the hemp industry, which is subject to extensive
regulation and severe market pressures. The Debtor further
stated that its case has involved certain other complexities,
including the need to obtain debtor-in-possession financing from
an insider, obtaining trade credit from certain critical vendors,
and implementing a key employee retention program so that vital
employees did not leave the Debtor. The Debtor pointed out,
however, that notwithstanding these complications, in a
compressed time period of less than 3 months, the Debtor
proposed, obtained approval for, and ultimately closed on a sale
of substantially all of its assets.
The Debtor explained that while it has already begun drafting its
plan and disclosure statement, it needs additional time to
finalize and file its drafts.
Green Roads Inc. is represented by:
James R. Irving, Esq.
DENTONS BINGHAM GREENEBAUM LLP
3500 PNC Tower, 101 S. Fifth Street
Louisville, KY 40202
Tel: (502) 587-3606
Email: james.irving@dentons.com
- and -
Jonathan Kaskel, Esq.
DENTONS US LLP
1 Alhambra Plaza, Penthouse
Coral Gables, FL 33134
Tel: (305) 537-0009
Email: jonathan.kaskel@dentons.com
- and -
Andrew C. Helman, Esq.
DENTONS BINGHAM GREENEBAUM LLP
254 Commercial Street, Suite 245
Merrill’s Wharf
Portland, ME 04101
Email: andrew.helman@dentons.com
About Green Roads
Green Roads Inc. is a privately-owned CBD company that supplies
natural CBD infused products.
Green Roads Inc. filed a petition for relief under Chapter 11 of
the Bankruptcy Code (Bankr. S.D. Fla. Case No. 23-11738) on March
6, 2023. In the petition filed by Julie Pilch, interim chief
executive officer, the Debtor reported between $1 million and $10
million in both assets and liabilities.
Judge Scott M. Grossman oversees the case.
Dentons Bingham Greenebaum LLP and Dentons US LLP serve as the
Debtor's counsel.
GREYSTONE SELECT: S&P Alters Outlook to Stable, Affirms 'B' ICR
---------------------------------------------------------------
S&P Global Ratings affirmed its 'B' issuer credit rating on
Greystone Select Financial LLC and revised its outlook to stable
from positive. S&P also affirmed its 'BB-' issue level rating and
'1' recovery rating on Greystone's senior secured debt.
The stable outlook reflects S&P's expectation that despite
challenges in the macroeconomy, Greystone will maintain leverage of
3.0x-4.0x over the next 12 months while maintaining stable earnings
and adequate liquidity.
S&P no longer expects Greystone's operating performance will
support an upgrade in 2023.
Greystone, like other multifamily mortgage lenders, faces a weaker
origination environment in 2023, following higher interest rates
and inflationary pressures. As a result, S&P expects Greystone's
earnings to weaken over the next 12 months, such that the company's
leverage will remain 3.0x-4.0x
Greystone's earnings declined in 2022, and S&P expects lower
origination volumes and product mix shifts to have moderately
negative impacts on the company's earnings over the next 12
months.
For the year ended Dec. 31, 2022, Greystone's adjusted EBITDA was
$137 million, down 23% from the previous year. During the same
period, the company's origination volume declined to $16 billion
from $18.9 billion. S&P said, "While we expect total originations
in 2023 may be similar to 2022 levels, we think Greystone's
origination mix may shift more towards shorter-term mortgage
products, which are generally supported by Fannie Mae and Freddie
Mac. We expect this shift to have a negative affect on origination
related fees as these channels are less profitable compared with
the U.S. Department of Housing and Urban Development, however, we
expect stability in mortgage servicing rights (MSR) related
servicing fees."
Despite rising interest rates and inflation, the company's asset
quality has remained resilient.
S&P said, "We think the company will continue to maintain strong
underwriting standards and prudently mitigate future credit losses
related to this program. While 60-plus day delinquencies in the
company's Fannie Mae Delegated Underwriting and Servicing (DUS)
program ticked up moderately from 0.22% to 0.30% through 2022, the
company remains adequately reserved in our view, and has not
realized a loss in this program since a single $1.3 million loss
recorded in 2018.
"The stable outlook reflects our expectation that, over the next 12
months, Greystone will operate with debt to adjusted EBITDA of 3.0x
to 4.0x and debt to tangible equity below 1.0x. The outlook also
reflects our expectation that despite macroeconomic headwinds the
company will maintain stable earnings and adequate liquidity.
"We could lower our ratings on Greystone over the next 12 months if
credit metrics decline further, with debt to adjusted EBITDA
exceeding 4.0x on a sustained basis." This could occur if:
-- Origination volume continues to decline because of higher
interest rates and inflationary pressures,
-- The company engages in a debt-funded acquisition that raises
leverage beyond our expectations, or
-- Outsize losses materialize under the Fannie Mae DUS
risk-sharing program.
An upgrade is unlikely over the next 12 months. Over time, S&P
could raise the ratings if the company can reduce and sustain
leverage below 3.0x, while maintaining solid earnings, debt to
tangible equity below 1.0x, and adequate liquidity.
HAYDEN LANE: Dawn Maguire Named Subchapter V Trustee
----------------------------------------------------
The U.S. Trustee for Region 14 appointed Dawn Maguire, Esq., at
Guttilla Murphy Anderson, P.C. as Subchapter V trustee for Hayden
Lane Properties, LLC.
Ms. Maguire will be paid an hourly fee of $350 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Maguire declared that she is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Dawn Maguire, Esq.
Guttilla Murphy Anderson, P.C.
5415 East High Street, Suite 200
Phoenix, AZ 85054
Telephone: (480) 304-8300
Fax: (480) 304-8301
Email: dmaguire@gamlaw.com
About Hayden Lane
Hayden Lane Properties, LLC filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. D. Ariz. Case No.
23-04390) on June 30, 2023. Judge Eddward P. Ballinger Jr. oversees
the case.
HUDSON RIVER: S&P Affirms 'BB-' ICR, Outlook Stable
---------------------------------------------------
S&P Global Ratings said it affirmed its 'BB-' issuer credit and
senior secured debt ratings on Hudson River Trading LLC (HRT). The
outlook remains stable.
The ratings affirmation incorporates our view that while HRT's
reliance on short-term funding and riskier principal trading
business constrains the rating, the firm has supportive liquidity
and adequate capitalization, despite significant growth compared
with some peers and weaker-than-peers' performance in 2022.
Like most of its high-frequency trading peers, HRT's reliance on
short-term funding constrains the rating, though the firm maintains
supportive liquidity. The expansion of HRT's trading business has
grown the overnight and period-end trading book considerably over
the past few years. To support the balance-sheet expansion, HRT has
raised its stable funding through retention of earnings and
increased the size of its outstanding term loan (through several
upsizes) to a total of just over $2 billion. However, the use of
short-term wholesale funding has also increased, which raises
funding risk, in S&P's view. This has constrained the firm's gross
stable funding ratio, which remained low at 78% as of March 31,
2023.
HRT self-clears U.S. equities, which it funds through
collateralized transactions with institutional counterparties. To
facilitate and fund its trading of other products, HRT maintains
several prime broker relationships. While prime brokers can
represent funding concentrations, S&P believes long, stable
relationships with a diverse group of prime brokers provides
funding stability.
HRT's main source of liquidity is its net trading capital it holds
in excess of its prime brokers' and other counterparties' margin
requirements.(Net trading capital is shareholders' equity plus
long-term debt minus nontrading assets, a measure of cash capital).
The firm's margin-to-net trading capital ratio was approximately
59% as of March 31, 2023, providing ample flexibility to meet
incremental margin requirements at prime brokers and
clearinghouses, if needed. Additionally, to meet contingent
liquidity needs, HRT has access to a committed revolving credit
facility (established in the first half of 2022), as well as
committed and uncommitted facilities to support settlement
activities. Although, S&P doesn't consider uncommitted facilities
reliable in a stress scenario.
HRT posted weaker-than-peers' performance in 2022, although results
rebounded in the first quarter of 2023.HRT posted a loss in the
second quarter of 2022 and overall, a weaker performance in the
full year 2022. Net income decreased slightly in the first quarter
of 2023 compared to a year ago amid receding volatility, though
performing better than most peers.
Despite aggressive growth compared with some peers and
weaker-than-peers' performance in 2022, capitalization remains
solid. HRT's risk-adjusted capital (RAC) ratio was 10.9% as of Dec.
31, 2022, owing to a decline in exposures amid less volatility
(compared with 2020 and 2021). The RAC ratio further increased to
11.3% as of March 31, 2023, because of earnings retention. S&P
expects continued growth in trading operations to increase
exposures but the RAC ratio to remain 9.5%-10.5% over the next 12
months.
S&P said, "Our issuer and debt ratings on HRT are two notches lower
than the group credit profile.The two-notch difference reflects
that the debt-issuing nonoperating holding company is structurally
subordinated to its operating subsidiaries and open to potential
regulatory interference in dividends to the parent.
"We rate the senior secured term loan at the same level as the
issuer credit rating given the lack of higher-priority debt
obligations at the holding company.
"The stable outlook indicates our expectation that HRT will
maintain supportive operational performance, capitalization, and
liquidity as it continues to expand its trading operations and
risk. We expect the firm will maintain profitability and a RAC
ratio between 9.5%-10.5%."
Over the next 12 months, S&P could lower the ratings if:
-- S&P sees evidence of inadequate risk management or expansion in
its risk appetite;
-- S&P expects the RAC ratio to fall below 7%; or
-- Liquidity deteriorates materially.
An upgrade is unlikely over S&P's one-year rating horizon.
INMET MINING: Seeks to Extend Plan Exclusivity to December 3
------------------------------------------------------------
Inmet Mining, LLC asks the U.S. Bankruptcy Court for the Eastern
District of Kentucky to extend its exclusive periods to file a
chapter 11 plan and solicit acceptances thereof to December 3,
2023 and February 2, 2024, respectively.
The Debtor explained that its bankruptcy proceeding involves
sizeable and complex business operations with over 500 interested
parties and many millions of dollars in assets and liabilities,
and it has made progress since the commencement of this
proceeding.
The Debtor stated that it has, among other things, utilized the
initial post-petition date period to stabilize its operations,
obtained Court approval of important operational programs, and
filed schedules of assets and liabilities and statements of
financial affairs and amendments. The Debtor also added that it
is in the process of selling substantially all of its assets.
The Debtor believes that it has made good faith progress toward
formulating a viable plan for its chapter 11 case, but it needs
additional time to work with parties in interest and fully
analyze all relevant issues before a plan and disclosure
statement can be submitted, due to its focus on the value-
maximizing sale process and its efforts to stabilize post-
petition operations.
Unless extended, the filing exclusivity period and soliciting
exclusivity period expire on August 3, 2023 and October 2, 2023,
respectively.
Inmet Mining, LLC is represented by:
Mary Elisabeth Naumann, Esq.
Chacey R. Malhouitre, Esq.
JACKSON KELLY PLLC
100 W. Main Street, Ste. 700
Lexington, KY 40507
Tel: (859) 255-9500
Email: mnaumann@jacksonkelly.com
chacey.malhouitre@jacksonkelly.com
- and -
Angela L. Beblo, Esq.
JACKSON KELLY PLLC
500 Lee Street East, Suite 1600
Charleston, WV 25301-3202
Tel: (304) 340-3144
Email: angela.beblo@jacksonkelly.com
About Inmet Mining
Inmet Mining, LLC is a company in Knoxville, Tenn., which
operates in the coal mining industry.
Inmet Mining sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. E.D. Ky. Case No. 23-70113) on April 5, 2023, with
$50 million to $100 million in assets and $100 million to $500
million in liabilities. Jeffrey Strobel, chief restructuring
officer, signed the petition.
Judge Gregory R. Schaaf oversees the case.
Jeffrey Phillips, Esq., at Steptoe & Johnson, PLLC serves as the
Debtor's legal counsel. Stretto, Inc. is the claims, noticing,
and solicitation agent.
Paul Randolph, Acting U.S. Trustee for Region 8, appointed an
official committee to represent unsecured creditors in the
Debtor's Chapter 11 case. The committee tapped Dentons Bingham
Greenebaum, LLP and Whiteford, Taylor & Preston, LLP as legal
counsels; and BDO Consulting Group, LLC as financial advisor.
INTERNATIONAL LAND: Incurs $10.4 Million Net Loss in 2022
---------------------------------------------------------
International Land Alliance, Inc. filed with the Securities and
Exchange Commission its Annual Report on Form 10-K disclosing a net
loss of $10.42 million on zero revenue and lease income for the
year ended Dec. 31, 2022, compared to a net loss of $5.06 million
on $522,696 of revenues and lease income for the year ended Dec.
31, 2021.
As of Dec. 31, 2022, the Company had $1.17 million in total assets,
$5.72 million in total liabilities, $293,500 in preferred stock
series B, and a total stockholders' deficit of $4.84 million.
Houston, Texas-based M&K CPAS, PLLC, the Company's auditor since
2022, issued a "going concern" qualification in its report dated
July 6, 2023, citing that the Company has suffered net losses from
operations, which raises 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/0001657214/000149315223023833/form10-k.htm
About International Land Alliance
International Land Alliance, Inc. -- https://ila.company -- is a
residential land development company with target properties located
in the Baja California, Northern region of Mexico and Southern
California. The Company's principal activities are purchasing
properties, obtaining zoning and other entitlements required to
subdivide the properties into residential and commercial building
lots, securing financing for the purchase of the lots, improving
the properties infrastructure and amenities, and selling the plots
to homebuyers, retirees, investors, and commercial developers.
KUAKINI HEALTH: S&P Places 'CCC' LT Bond Rating on Watch Negative
-----------------------------------------------------------------
S&P Global Ratings' 'CCC' long-term rating on the Hawaii State
Department of Budget & Finance's series 2002A revenue bonds, issued
for the Kuakini Health System (Kuakini), remains on CreditWatch
with negative implications, where it was placed April 14, 2023.
"The rating and negative CreditWatch reflect Kuakini's extremely
limited financial position and downward cash trajectory,
characterized by light unrestricted reserves of just $4.1 million
(9.3 days' cash on hand) as of March 31, 2023," said S&P Global
Ratings credit analyst Patrick Zagar. In addition, the rating
reflects our view of Kuakini's unsustainable operating baseline and
elevated governance risks, with a long-term track record of failing
to generate sufficient cash flow from clinical operations to
support debt service coverage (DSC) and necessary investments into
the organization. We also expect continued pressure on liquidity
from operations, though cash needs could be supported by the
contemplated asset sale, with subsequent decline likely
thereafter.
The CreditWatch reflects our view that Kuakini's limited financial
position provides no cushion for any clinical or operational
disruptions and we believe a liquidity crisis and possible missed
debt service payment are increasingly likely in the near term
absent the successful sale of assets over the coming months. We
would consider a lower rating if we view payment default or
bankruptcy risk as increasingly probable over the coming quarters,
which would be consistent with failure to close the asset sale and
increase unrestricted reserves.
LSF12 BADGER: S&P Assigns 'B' Issuer Credit Rating, Outlook Stable
------------------------------------------------------------------
S&P Global Ratings assigned its 'B' issuer credit rating to LSF12
Badger Bidco LLC. S&P also assigned its 'B' issue-level and '3'
recovery rating to the company's proposed first-lien debt.
The stable outlook reflects S&P's view that the company will
continue demonstrating solid operating performance and generating
positive free operating cash flow (FOCF), enabling it to reduce its
S&P Global Ratings-adjusted debt to EBITDA in the low- to mid-5x
range over the next 12 months.
Lone Star Funds (LSF) is acquiring LSF12 Badger Bidco LLC, the
parent of global commercial vehicle systems and components
manufacturer CentroMotion. The company is issuing debt to fund the
transaction, which S&P Global Ratings expects will close in third
quarter 2023.
Since the combination of Carlisle Brake & Friction (CB&F) in August
2021, CentroMotion has demonstrated its ability to enhance its
product offering and manufacturing footprint enabling long-term
value creation in the markets it serves. S&P said, "We expect the
company's long-standing relationships with its customers, broad
geographic diversity, as well as favorable demand dynamics in
heavy-duty trucking and agriculture will continue to benefit its
business profile. That said, these markets tend to be more cyclical
and could cause the company to experience modest short-term
earnings volatility in the event of a more prolonged downturn. In
addition, we view CentroMotion's scale and margin profile as lower
compared to that of its higher-rated peers."
CentroMotion continues to demonstrate solid operating performance
and favorable end-market dynamics despite a lackluster
macroeconomic environment. Over the past two years, the company has
been able to generate positive sales growth and incremental margin
improvement in nearly every quarter subsequent to the combination.
For the past 12-month (LTM) period ended March 31, 2023, the
company generated organic sales growth of about 13% and S&P Global
Ratings-adjusted EBITDA margin improvement of nearly 250 basis
points (bps). S&P expects this trend to continue through most of
2023 as the company's top original equipment manufacturer (OEM)
customers continue purchasing components to build out new fleet and
servicing existing equipment. However, CentroMotion operates within
a relatively mature and niche market wherein longer-term
customer-base growth prospects are more limited and the company
will need to rely on a combination of inorganic and organic
opportunities to support growth.
S&P said, "Despite our expectations for continued margin
improvement, leverage remains elevated. As part of the transaction,
the company will be issuing a total of $525 million of new debt
(inclusive of the preferred equity at a holding company, which we
view as debt-like) and repaying its existing $545 million term
loan. The transaction also consists of an additional potential
earn-out consideration, which we consider in our forecast. Given
this, we view the transaction as relatively neutral for leverage;
however, transaction costs are likely going to keep leverage
elevated for the next 12 months. We also recognize certain
strategic priorities that the new ownership plans to take, further
improving EBITDA margins and partially offsetting the expected
spike in leverage. As a result, we anticipate margins remaining in
the low-teen percentage area and debt to EBITDA in the low- to
mid-5x range over the next year. In addition, our assessment of the
company's financial risk incorporates its financial sponsor
ownership and the potential that leverage could remain high.
Specifically, while we do not expect LSF to pursue debt-funded
dividends within the next year, we expect it will opportunistically
pursue acquisitions over time that could keep leverage elevated.
"CentroMotion will continue to generate positive FOCF as well as
demonstrate adequate liquidity and covenant headroom. We anticipate
the company will generate positive FOCF of approximately $25
million-$30 million over the next 12 months, with support from
strong earnings from operations and working capital inflows,
partially offset by transaction-related expenses and modestly
higher capital expenditures (capex). We expect the company to
remain acquisitive, using excess cash and debt to fund
opportunities that support both its existing customer base and new
market growth. With over $30 million of cash on the balance sheet
and full availability on its revolving credit facility (RCF)
post-transaction, the company should have adequate liquidity and
covenant headroom to manage its operating needs forr the next 12
months.
"The stable outlook reflects our view the company will continue
demonstrating solid operating performance and generating positive
FOCF, enabling it to reduce its S&P Global Ratings-adjusted debt to
EBITDA in the low- to mid-5x range over the next 12 months."
S&P could lower its rating on CentroMotion if:
-- The company experiences a significant reduction in its OEM
sales during the next 12 months that drastically reduces earnings,
causing it to sustain leverage above 6.0x with no clear prospects
for improvement; or
-- The company's working capital or operating trends deteriorate,
causing a shortfall in FOCF and constrained availability on its
revolving facilities; or
-- It adopts a more aggressive financial policy that includes
large debt-financed acquisitions and/or sizeable shareholder
rewards.
While unlikely within the next 12 months, S&P could raise the
rating on CentroMotion if the company:
-- Maintains S&P Global Ratings-adjusted debt to EBITDA well below
5x and we believe it is committed to such leverage;
-- Substantially improves EBITDA margins while maintaining
stability through the business cycle; and
-- Generates consistently positive FOCF.
ESG credit indicators:E-2, S-2, G-3
S&P said, "Governance factors are a moderately negative
consideration in our credit rating analysis of CentroMotion, as is
the case for most rated entities owned by private-equity sponsors.
We believe its highly leveraged financial risk profile points to
corporate decision-making that prioritizes the interests of
controlling owners. This also reflects the generally finite holding
periods and a focus on maximizing shareholder returns."
LTL MANAGEMENT: Sues Doctors Linking Talc to Mesothelioma
---------------------------------------------------------
Vince Sullivan of Law360 reports that the bankrupt talc unit of
Johnson & Johnson filed suit Friday in New Jersey federal court
against three doctors the company claims have damaged its talc
business through publication of articles linking talc use to
mesothelioma using "junk science."
About LTL Management
LTL Management, LLC, is a subsidiary of Johnson & Johnson (J&J),
which was formed to manage and defend thousands of talc-related
claims and oversee the operations of Royalty A&M. Royalty A&M owns
a portfolio of royalty revenue streams, including royalty revenue
streams based on third-party sales of LACTAID, MYLANTA/MYLICON and
ROGAINE products.
LTL Management filed a petition for Chapter 11 protection (Bankr.
W.D.N.C. Case No. 21-30589) on Oct. 14, 2021. The case was
transferred to New Jersey (Bankr. D.N.J. Case No. 21-30589) on Nov.
16, 2021. The Hon. Michael B. Kaplan is the case judge. At the
time of the filing, the Debtor was estimated to have $1 billion to
$10 billion in both assets and liabilities.
The Debtor tapped Jones Day and Rayburn Cooper & Durham, P.A., as
bankruptcy counsel; King & Spalding, LLP and Shook, Hardy & Bacon
LLP as special counsel; McCarter & English, LLP as litigation
consultant; Bates White, LLC as financial consultant; and
AlixPartners, LLP as restructuring advisor. Epiq Corporate
Restructuring, LLC, is the claims agent.
An official committee of talc claimants was formed in the Debtor's
Chapter 11 case on Nov. 9, 2021. On Dec. 24, 2021, the U.S.
Trustee for Regions 3 and 9 reconstituted the talc claimants'
committee and appointed two separate committees: (i) the official
committee of talc claimants I, which represents ovarian cancer
claimants, and (ii) the official committee of talc claimants II,
which represents mesothelioma claimants.
The official committee of talc claimants I tapped Genova Burns LLC,
Brown Rudnick LLP, Otterbourg PC and Parkins Lee & Rubio LLP as its
legal counsel. Meanwhile, the official committee of talc claimants
II is represented by the law firms of Cooley LLP, Bailey Glasser
LLP, Waldrep Wall Babcock & Bailey PLLC, Massey & Gail LLP, and
Sherman Silverstein Kohl Rose & Podolsky P.A.
Re-Filing of Chapter 11 Petition
On Jan. 30, 2023, a panel of the Third Circuit issued an opinion
directing the Court to dismiss the 2021 Chapter 11 Case on the
basis that it was not filed in good faith. Although the Third
Circuit panel recognized that the Debtor "inherited massive
liabilities" and faced "thousands" of future claims, it concluded
that the Debtor was not in financial distress before the filing.
On March 22, 2023, the Third Circuit entered an order denying the
Debtor's petition for rehearing. The Third Circuit entered an
order denying LTL's stay motion on March 31, 2023, and, on the dame
day, issued its mandate directing the Bankruptcy Court to dismiss
the 2021 Chapter 11 Case.
The Bankruptcy Court entered an order dismissing the 2021 Case on
April 4, 2023.
Johnson & Johnson on April 4, 2023, announced that its subsidiary
LTL Management LLC (LTL) has re-filed for voluntary Chapter 11
bankruptcy protection (Bankr. D.N.J. Case No. 23-12825) to obtain
approval of a reorganization plan that will equitably and
efficiently resolve all claims arising from cosmetic talc
litigation against the Company and its affiliates in North
America.
In the new filing, J&J said it has agreed to contribute up to a
present value of $8.9 billion, payable over 25 years, to resolve
all the current and future talc claims, which is an increase of
$6.9 billion over the $2 billion previously committed in connection
with LTL's initial bankruptcy filing in October 2021. LTL also has
secured commitments from over 60,000 current claimants to support a
global resolution on these terms.
MAINE CONSULTING: Starts Subchapter V Bankruptcy Case
-----------------------------------------------------
Maine Consulting LLC filed for chapter 11 protection in the Central
District of California. The Debtor elected on its voluntary
petition to proceed under Subchapter V of chapter 11 of the
Bankruptcy Code.
According to court filings, Maine Consulting estimates between $1
million and $10 million in debt owed 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 28, 2023 at 10:00 a.m. in Room Telephonically on telephone
conference line: 1-866-816-0394. participant: 5282999).
About Maine Consulting
Maine Consulting LLC provides professional services. The Company's
line of business includes providing management consulting services.
Maine Pointe serves customers worldwide.
Maine Consulting LLC sought relief under Subchapter V of Chapter 11
of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 23-14168) on
July 3, 2023. In the petition filed by Rupert Grant, as member, the
Debtor reports estimated assets between $500,000 to $1 million and
liabilities between $1 million and $10 million.
The Honorable Bankruptcy Judge Neil W Bason oversees the case.
The Subchapter V trustee:
Gregory K. Jones
10100 N. Santa Monica Blvd., Suite 1400
Los Angeles CA 90067
MANANTIAL ROCA: Case Summary & Six Unsecured Creditors
------------------------------------------------------
Debtor: Manantial Roca Cristal, LLC
PR 112 Km 1.3 Ramal 4445 Int Bo Rocha
Moca, PR 00676
Business Description: The Debtor owns real property located at
PR 112 Km 1.3 Ramal 4445 Int Bo Rocha,
MocaA, PR valued at $686,000.
Chapter 11 Petition Date: July 10, 2023
Court: United States Bankruptcy Court
District of Puerto Rico
Case No.: 23-02122
Judge: Hon. Enrique S. Lamoutte Inclan
Debtor's Counsel: Juan C. Bigas-Valedon, Esq.
JUAN C. BIGAS
PO Box 7011
Ponce, PR 00732-7011
Email: cortequiebra@yahoo.com
Total Assets: $721,764
Total Liabilities: $1,022,313
The petition was signed by Lourdes Socorro Ramirez Benique as
presidente.
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/BSIQRIY/MANANTIAL_ROCA_CRISTAL_LLC__prbke-23-02122__0001.0.pdf?mcid=tGE4TAMA
MEDHAWK POOLS: Seeks Cash Collateral Access
-------------------------------------------
MedHawk Pools & Patio LLC asks the U.S. Bankruptcy Court for the
Eastern District of Texas, Sherman Division, for authority to use
cash collateral in accordance with the budget.
A search in the Texas Secretary of State shows that allegedly
secured positions are held by Brownstone (filing number
22-0027317781), Fintegra (filing number 22-0027318439), Novus
Capital (filing number 23-0004694664), Skyinance (filing number
23-0008289638), Seamless Capital (filing number 23-0019269486 filed
under MedHawk Pools, MedHawk Logistics, MedHawk Gunite and Swift
Shotcrete), Everest (filing number 23-0024213057) and G and G
Funding (filing number 23-0024717541). While these UCC filings
appear to be secured as blanket liens, the Debtor believes the
Merchant Cash Advance lenders are not properly secured in any of
the Debtor's property or accounts.
However, out of an abundance of caution, the Debtor is proposing
that, in exchange for the use of cash collateral, these entities be
awarded replacement liens to the same extent and priority, if any,
that existed as of the bankruptcy filing date. The Debtor will
continue to investigate the true nature of these transactions and
work with these entities before a final cash collateral hearing to
determine if anything other than replacement liens are necessary.
A copy of the motion is available at https://urlcurt.com/u?l=oS6HYW
from PacerMonitor.com.
A copy of the budget is available at https://urlcurt.com/u?l=lDeeW6
from PacerMonitor.com.
The Debtor projects $75,000 in cash receipts and $74,950 in cash
disbursements for 30 days.
About MedHawk Pools & Patio LLC
MedHawk Pools & Patio LLC is a custom pool builder in Celina,
Texas, and surrounding North Dallas areas. The Company specializes
in designing and constructing custom pools and creating outdoor
living spaces.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Tex. Case No. 23-41205) on July 7,
2023. In the petition signed by Mark Gilbaugh, manager, the Debtor
disclosed $1,818,231 in assets and $3,086,584 in liabilities.
Robert C. Lane, Esq., at the Lane Law Firm, represents the Debtor
as legal counsel.
MEDIAMATH HOLDINGS: May Use $5.5MM of Cash Collateral
-----------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware authorized
MediaMath Holdings, Inc. and affiliates to use up to $5.5 million
of cash collateral on an interim basis in accordance with the
budget and provide adequate protection and provide security and
other relief to Goldman Sachs Specialty Lending Group, L.P., as
administrative agent and collateral agent for the lenders party
from time to time to the Credit Agreement and the other Prepetition
Secured Parties.
The Debtors require the use of cash collateral to continue its
operations.
Certain of the Debtors are borrowers or guarantors under an Amended
and Restated Credit and Guaranty Agreement, dated as of April 21,
2022, by and among Debtor MediaMath Holdings, Inc. and certain
subsidiaries of the Debtors, the other credit parties party thereto
from time to time, the lenders party thereto from time to time, and
Goldman Sachs Specialty Lending Group, L.P., as administrative
agent and collateral agent. The Credit Agreement, which
memorializes the terms of the Debtors' first lien funded
indebtedness, is made up of a term loan in the amount of $11
million and a revolving facility in an aggregate amount not to
exceed $80 million. As of the Petition Date, the Debtors had
approximately $95 million of aggregate principal first lien funded
indebtedness, including accrued and unpaid interest.
The Applicable Debtors are directed to remit to Prepetition Agent,
on not less than a weekly basis, all cash collateral in excess of
$5 million.
As adequate protection, the Prepetition Agent is granted the
Replacement Liens, for the benefit of itself and the Prepetition
Secured Parties, as security for the complete payment and
performance of the Prepetition Debt, as and for any diminution from
and after the Petition Date.
The Replacement Liens: (1) are in addition to the Prepetition
Liens; (2) are properly perfected, valid, and enforceable liens
without any other or further action by Applicable Debtors or
Prepetition Agent, and without the execution, filing, or
recordation of any financing statement, security agreement, control
agreement, mortgage, title notation, or any other agreement,
document, or instrument; and (3) will remain in full force and
effect notwithstanding any subsequent conversion or dismissal of
any Case.
A copy of the order is available at https://urlcurt.com/u?l=oSp1T3
from PacerMonitor.com.
About MediaMath Holdings, Inc.
MediaMath Holdings, Inc. develops and delivers digital advertising
media and data management technology solutions to advertisers.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Lead Case No. 23-10882) on June 30,
2023. In the petition signed by Neil Nguyen, chief executive
officer, the Debtor disclosed up to $500 million in both assets and
liabilities. As of the Petition Date, the Debtors had about $95
million of first lien funded debt.
Judge Laurie Selber Silverstein oversees the case.
The Debtors tapped YOUNG CONAWAY STARGATT & TAYLOR, LLP as legal
counsel, FTI CONSULTING, INC. as financial advisor, and EPIQ
CORPORATE RESTRUCTURING, LLC as claims and restructuring agent.
MINERVA RESOURCES: Aug. 23 Hearing on Plan & Disclosures
--------------------------------------------------------
Judge Christopher Lopez has entered an order conditionally
approving the Disclosure Statement of Minerva Resources, LLC, and
Cronus Mineral Holdings, LLC.
The solicitation procedures proposed to be utilized by the Debtors
for distribution of the Solicitation Packages as set forth in the
Motion in soliciting acceptances and rejections of the Plan satisfy
the requirements of the Bankruptcy Code and the Bankruptcy Rules
and are approved. In addition to the Joint Plan and Disclosure
Statement and any applicable Ballot(s), the Solicitation Package
shall also include a copy of this Order and the Combined Notice.
The following confirmation schedule is approved:
* The Plan Supplement filing deadline will be on August 4, 2023
* The Plan voting deadline and the deadline to object to
Disclosure Statement and Confirmation will be on August 14, 2023.
* The combined hearing on final approval of the Disclosure
Statement and Confirmation of Plan will be on August 23, 2023 at
10:00 a.m.
The Master Class 2 Ballot for the PM Settlement Trust,
substantially in the form attached hereto as Exhibit 1 is
approved.
The Ballot for Class 2 (General Unsecured Claims), substantially in
the form attached hereto as Exhibit 2 is approved.
The Notice of Non-Voting Status, substantially in the form attached
hereto as Exhibit 3, is approved. The Debtors are authorized to
send the Notice of Non-Voting Status to the Non-Voting Holders in
lieu of sending copies of the Plan and Disclosure Statement.
The Notice of Non-Voting Status to Class Action Settlement Parties
is approved.
About Minerva Resources
Minerva Resources LLC was formed for the purpose of owning
non-operated working interests in various oil and gas assets.
Cronus Mineral Holdings, LLC was formed for the purpose of holding
certain overriding royalty interests in oil and gas properties.
Cronus is also one of the owners of the company that manages
Minerva.
Minerva Resources and affiliate Cronus Mineral Holdings sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
S.D. Texas Lead Case No. 22-32291) on Aug. 11, 2022. At the time of
the filing, Minerva Resources listed as much as $50 million in both
assets and liabilities while Cronus Mineral Holdings listed up to
$1 million in assets and up to $50,000 in liabilities.
Judge Christopher M. Lopez oversees the cases.
The Debtors tapped Porter Hedges, LLP as bankruptcy counsel, Ahmad
Zavitsanos & Mensing, PC as special counsel, and MACCO
Restructuring Group, LLC as financial advisor. Drew McManigle,
managing director at MACCO, serves as the Debtors' chief
restructuring officer. EnergyNet.com, LLC has been tapped to
preform sales brokerage and consulting services for the disposition
of the Debtors' assets.
MISSISSIPPI CENTER: Seeks to Hire Bradley as Special Counsel
------------------------------------------------------------
Mississippi Center for Advanced Medicine, P.C. seeks approval from
the U.S. Bankruptcy Court for the Southern District of Mississippi
to employ Bradley Arant Boult Cummings, LLP as special counsel.
The Debtor needs the firm's legal assistance in state and federal
court proceedings, which include those lawsuits brought against it
by the University of Mississippi Medical Center in the Circuit
Court of Hinds County, Mississippi (Cause No. 17-410) and in the
U.S. District Court for the Southern District of Mississippi (Case
No. 19-cv-459).
The firm will be compensated at $435 per hour.
E. Todd Presnell, Esq., a partner at Bradley, 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:
E. Todd Presnell, Esq.
Bradley Arant Boult Cummings, LLP
Roundabout Plaza, 1600 Division Street, Suite 700
Nashville, TN 37203
Tel: (615) 252-2355
Fax: (615) 252-6355
Email: tpresnell@bradley.com
About Mississippi Center for
Advanced Medicine
Mississippi Center for Advanced Medicine, P.C. is a healthcare
organization in Mississippi that integrates subspecialty care,
clinical pharmacy services, and care coordination for patients with
pediatric, congenital, and maternal fetal disorders.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. S.D. Miss. Case No. 23-00962) on April 21,
2023, with $1 million to $10 million in both assets and
liabilities. Greta Brouphy, Esq., a partner at Heller, Draper and
Horn, LLC, has been appointed as Subchapter V trustee.
Judge Jamie A. Wilson oversees the case.
The Debtor tapped Craig M. Geno, Esq., at the Law Offices of Craig
M. Geno, PLLC as bankruptcy counsel; Priester Law Firm, PLLC,
Bradley Arant Boult Cummings, LLP and Brunini, Grantham, Grower &
Hewes, PLLC as special counsels; and Haddox Reid Eubank Betts, PLLC
as accountant.
MULEHOUSE GROUP: Seeks Cash Collateral Access
---------------------------------------------
Mulehouse Group, Inc. and Coalesce Media, LLC ask the U.S.
Bankruptcy Court for the Middle District of Tennessee, Columbia
Division, for authority to use cash collateral and provide adequate
protection.
The Debtor requires the use of cash collateral for ordinary and
necessary operating expenses of business operations.
Based on lien reviews conducted prior to the Petition Date, several
parties may assert an interest in the Debtors' cash collateral. The
lien review revealed the following with respect to Mulehouse:
a. On February 25, 2021, First Horizon filed a UCC-1 financing
statement, Instrument No. 436628884, B0986-4427, with the Tennessee
Secretary of State, asserting a blanket lien on all of Mulehouse's
assets, to specifically include cash, deposit accounts, non-deposit
accounts, accounts receivable, whether now owned or acquired
hereafter, and the proceeds, products, and income therefrom.
b. On September 28, 2022, Corporation Service Company filed a
UCC-1 financing statement, Instrument No. 437375512, B1283-2310,
with the TNSOS, asserting a blanket lien on all of Mulehouse's
assets, to specifically include the accounts receivable, whether
now owned or acquired hereafter, and the proceeds, products, and
income therefrom. CSC filed the financing statement in the capacity
as a "representative" of an unidentified party and listed the
maximum indebtedness at $0. Mulehouse is unaware of the nature or
extent of the referenced lien or underlying debt. Notwithstanding,
the party-in-interest in relation to this lien appears to be
undersecured.
c. On December 14, 2022, Avanza Group, LLC filed a UCC-1
financing statement, Instrument No. 437745384, B1257-7481with the
TNSOS; provided, however, that Avanza asserts that it purchased
certain future receivables and therefore owns such receivables more
fully described in a purchase and sale agreement, dated November
11, 2022. Avanza's financing statement was filed for notice
purposes only. Mulehouse intends to determine whether the
transaction with Avanza constituted a true sale in the nature of a
factoring agreement or, instead, constituted a financing
transaction secured by future receivables. Mulehouse does not take
the position that Avanza has a lien on cash collateral.
d. On May 9, 2023, Proventure Capital LLC filed a UCC-1
financing statement, Instrument No. 438445713, B1389-7168with the
TNSOS, asserting a blanket lien on all of Mulehouse's assets, to
specifically include the accounts receivable, whether now owned or
acquired hereafter, and the proceeds, products, and income
therefrom. This lien was fully satisfied prior to the petition date
and otherwise is avoidable as a preferential transfer.
The lien review revealed the following with respect to Coalesce:
a. On February 26, 2020, First Horizon Bank filed a UCC-1
financing statement, Instrument No. 432077663, with the TNSOS,
asserting a blanket lien on all of Coalesce's assets, to
specifically include the accounts receivable, whether now owned or
acquired hereafter, and the proceeds, products, and income
therefrom.
b. On February 28, 2020, First Horizon Bank filed a UCC-1
financing statement, Instrument No. 432062381, with the TNSOS,
asserting a blanket lien on all of Coalesce's assets, to
specifically include the accounts receivable, whether now owned or
acquired hereafter, and the proceeds, products, and income
therefrom.
c. In addition to documents filed with the TNSOS, First
Horizon has recorded instruments with the Maury County Register of
Deeds in the nature of deeds of trust and, among other things, an
assignment of rents.
As adequate protection for the limited use of cash collateral, the
Debtors intend to provide to the Cash Collateral Lienholders a
replacement lien in accordance with 11 U.S.C. sections 361(2) and
552(b) to the extent of cash collateral actually expended, and on
the same assets and in the same order of priority as currently
exists. Any replacement lien will be to the same extent and with
the same validity and priority as the Cash Collateral Lienholders'
pre-petition lien, without the need to file or execute any document
as may otherwise be required under applicable non-bankruptcy law.
The Debtors are further willing to make reasonable adequate
protection payments to protect the Cash Collateral Lienholders,
namely First Horizon, from any decrease in the value of its
collateral, provide financial reporting, give access to financial
information, and other adequate protection deemed necessary.
The Debtors request a hearing date as soon as possible, but no
later than July 14, 2023.
A copy of the motion and the Debtor's budget is available at
https://urlcurt.com/u?l=lhemeY from PacerMonitor.com.
About Mulehouse Group
Mulehouse Group, Inc. filed a petition under Chapter 11, Subchapter
V of the Bankruptcy Code (Bankr. M.D. Tenn. Case No. 23-02258) on
June 26, 2023, with $100,001 to $500,000 in assets and $500,001 to
$1 million in liabilities.
Judge Randal S. Mashburn oversees the case.
Griffin S. Dunham, Esq., at Dunham Hildebrand, PLLC is the Debtor's
legal counsel.
NASSAU BREWING: Gets OK to Hire Cushman & Wakefield as Broker
-------------------------------------------------------------
Nassau Brewing Company Landlord, LLC received approval from the
U.S. Bankruptcy Court for the Eastern District of New York to
employ Cushman Wakefield Realty of Brooklyn, LLC.
The Debtor requires the services of a real estate broker to market
and sell its mixed-use building located at 945 Bergen St.,
Brooklyn, N.Y.
The firm will be paid a commission of 1.5 percent of the gross
sales price.
Daniel O'Brien, executive managing director at Cushman, 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:
Daniel O'Brien
Cushman Wakefield Realty of Brooklyn, LLC
1290 Avenue of the Americas, 8th Floor
New York, NY 10104
Tel: (212) 841-7500
Email: Brian.OConnor@cushwake.com
About Nassau Brewing Company Landlord
Nassau Brewing Company Landlord, LLC is a New York limited
liability company organized in 2015 to acquire a property at 945
Bergen Ave., Brooklyn, N.Y.
Nassau Brewing Co. filed a petition for Chapter 11 protection
(Bankr. E.D.N.Y. Case No. 21-41852) on July 16, 2021, with $10
million to $50 million in both assets and liabilities. Sean Rucker,
manager, signed the petition.
Judge Jil Mazer-Marino handles the case.
Goldberg Weprin Finkel Goldstein, LLP, led by Kevin J. Nash, Esq.,
serves as the Debtor's legal counsel.
NOSRAT LLC: Seeks to Extend Plan Exclusivity to October 8
---------------------------------------------------------
Nosrat, LLC asks the U.S. Bankruptcy Court for the Eastern
District of New York to extend its exclusive period to file a
plan of reorganization and to solicit acceptances thereof to
October 8, 2023 and December 7, 2023, respectively.
The Debtor narrated that on February 16, 2022, following a Kings
County jury verdict, an $8M judgment was entered against the
Debtor arising from a wintertime slip and fall case on the
sidewalk outside a dance studio that rents space from the Debtor.
The Debtor's liability insurance covers only $1M of the claim.
The Debtor explained that its pre-petition attempts to settle
with the plaintiff, Ms. Nataki Caver, were so unproductive that
all parties concluded that further efforts would be an exercise
in futility.
The Debtor stated that it is prosecuting its appeal, and that it
has filed a chapter 11 plan under which it would ensure payment
to Ms. Caver if the judgment following appeal necessitates the
sale of refinancing of its real property.
Nosrat, LLC is represented by:
Mark Frankel, Esq.
BACKENROTH FRANKEL & KRINSKY, LLP
488 Madison Avenue Fl 23
New York, NY 10022
Tel: (212) 593-1100
About Nosrat LLC
Nosrat, LLC is a single asset real estate as defined in 11 U.S.C.
Section 101(51B). It owns the real property at 343-349 Nostrand
Ave. and 415-419 Gates Ave., Brooklyn, N.Y. The property is a
mixed-use eight-building apartment complex with five stores and
54 apartments on the northeast corner of Nostrand Avenue and
Gates Avenue in Bedford Stuyvesant.
Nosrat filed a petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 23-70776) on March 7,
2023. In the petition filed by Enrique Ventura, controller, the
Debtor reported total assets of $25,002,000 and total liabilities
of $20,923,965.
Judge Alan S. Trust oversees the case.
The Debtor tapped Mark A. Frankel, Esq., at Backenroth Frankel &
Krinsky, LLP as legal counsel and Isaac Goldstein CPA as
accountant.
NOSRAT LLC: Unsecureds Owed $924K Unimpaired in Plan
----------------------------------------------------
Nosrat LLC submitted a Chapter 11 Plan and a Disclosure Statement.
The Debtor owns the real property at 343-349 Nostrand Avenue and
415- 419 Gates Avenue, Brooklyn, New York, (the "Property"). The
Property is a mixed-use eight building apartment complex with five
stores and 54 apartments on the northeast corner of Nostrand Avenue
and Gates Avenue in Bedford Stuyvesant.
The Property was appraised at $22,740,000 in September 2017. The
Property is encumbered by a mortgage in the amount of about
$11,767,545 in favor of First National Bank of Long Island (the
"Lender" or the "Mortgagee"). The mortgage obligation is current.
Under the Plan, Class 5 General Unsecured Claims total
approximately $924,269, representing various general unsecured
vendor and loan claims. Class 5 will be paid in full in Cash of
Allowed Amount on the Effective Date, plus interest at the Legal
Rate as it accrues from the Petition Date through the date of
payment. Class 5 is unimpaired.
Effective Date payments under the Plan will be paid from cash on
hand or capital to be contributed by the Interest Holders, if
necessary. The Debtor shall place such amounts in an IOLA account
maintained by Backenroth Frankel & Krinsky, LLP to fund Effective
Date payments. Pending payment of the Class 3 Caver Judgment
Claim, the Debtor will continue to pay debt service, and shall not
encumber the Property with additional Liens.
Attorneys for the Debtor:
Mark A. Frankel, Esq.
BACKENROTH FRANKEL & KRINSKY, LLP
488 Madison Avenue
New York, NY 10022
Telephone: (212) 593-1100
Facsimile: (212) 644-0544
A copy of the Disclosure Statement dated July 5, 2023, is available
at https://tinyurl.ph/yQxFR from PacerMonitor.com.
About Nosrat LLC
Nosrat, LLC is a single asset real estate as defined in 11 U.S.C.
Section 101(51B). It owns the real property at 343-349 Nostrand
Ave. and 415-419 Gates Ave., Brooklyn, N.Y. The property is a
mixed-use eight-building apartment complex with five stores and 54
apartments on the northeast corner of Nostrand Avenue and Gates
Avenue in Bedford Stuyvesant.
Nosrat filed a petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 23-70776) on March 7,
2023. In the petition filed by Enrique Ventura, controller, the
Debtor reported total assets of $25,002,000 and total liabilities
of $20,923,965.
Judge Alan S. Trust oversees the case.
The Debtor tapped Mark A. Frankel, Esq., at Backenroth Frankel &
Krinsky, LLP as legal counsel and Isaac Goldstein CPA as
accountant.
NOTTINGHAM ACADEMY: Court OKs Cash Collateral Access Thru July 31
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Maryland, Baltimore
Division, authorized West Nottingham Academy in Cecil County to use
cash collateral on an interim basis in accordance with the budget,
through July 31, 2023.
The Debtor is currently obligated to First National Bank pursuant
to a term loan dated January 4, 2011, in the original principal
amount of $5 million, and a line of credit in the original
principal amount of $1 million. The Term Loan appears to be secured
by a first-priority Deed of Trust, Assignment and Security
Agreement dated January 4, 2011, and recorded among the land
records of Cecil County, Maryland, at Liber 2960, Folio 119. The
Line of Credit appears to be secured by a second priority lien on
the Real Property. On January 23, 2022, FNB also filed a UCC-1
Financing Statement with the Maryland State Department of
Assessments and Taxation, asserting a first-priority lien on and
against, substantially all personal property of the Debtor.
In addition, on October 19, 2022, the Debtor and FNB entered into a
Agreement Regarding Loans which provided, in part, the Debtor could
use the Escrow Account funds to make its monthly principal and
interest payments as due on the Term Loan for the months of
September 2022 through August 2023, with the drafted monthly
payments being repaid to FNB on or before August 31, 2024. The
Debtor seeks to use the Escrow Account for certain identified
purposes in the Cash Collateral Motion.
The Court ruled the Debtor will use the cash collateral in the
Escrow Account to make monthly payments to FNB in the amount of
$23,658 on account of the Term Loan and $7,096 on account of the
Line of Credit.
The Debtor's payments to FNB under the Order and the terms and
conditions set forth in the First Interim Orders will constitute
adequate protection of FNB's interest in its collateral pending the
outcome of the Final Hearing.
A further interim hearing on the matter is set for July 26, 2023 at
10 a.m.
The Court will hold the Final Hearing, which will be an
evidentiary, in person hearing, on September 19 at 10 am.
A copy of the order is available at https://urlcurt.com/u?l=bNap7o
from PacerMonitor.com.
About The West Nottingham Academy in Cecil County
The West Nottingham Academy in Cecil County is a college
preparatory boarding and day school for grades 9-12 and
postgraduates. West Nottingham offers a wide variety of athletic
programs, competitive and non-competitive clubs, visual, and
performing arts.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Md. Case No. 23-13830) on May 31, 2023.
In the petition signed by Jim Shone, trustee, the Debtor disclosed
$2,212,793 in assets and $7,238,821 in liabilities.
Judge Michelle M. Harner oversees the case.
Matthew Abbott, Esq., at Wolff and Orenstein LLC, represents the
Debtor as legal counsel.
NOVABAY PHARMACEUTICALS: Chief Product Officer Resigns
------------------------------------------------------
Dr. Audrey Kunin advised NovaBay Pharmaceuticals, Inc. of her
decision to retire and resign from her position as the Company's
chief product officer effective as of Nov. 5, 2023, the natural
expiration of her Executive Employment Agreement, dated Nov. 5,
2021, according to a Form 8-K filed by the Company with the
Securities and Exchange Commission.
About Novabay
Headquartered in Emeryville, California, NovaBay Pharmaceuticals,
Inc. -- http://www.novabay.com-- develops and sells scientifically
created and clinically proven eyecare and skincare products.
NovaBay's leading product, Avenova Antimicrobial Lid & Lash
Solution, is often prescribed by eyecare professionals for
blepharitis and dry-eye disease and is also available directly to
eyecare consumers through online distribution channels such as
Amazon. DERMAdoctor offers more than 30 OTC dermatologist-developed
skincare products through the DERMAdoctor website, well-known
traditional and digital beauty retailers, and international
distributors. NovaBay also manufactures and sells effective, yet
gentle and non-irritating wound care products.
Novabay reported a net loss of $10.61 million for the year ended
Dec. 31, 2022, a net loss and comprehensive loss of $5.82 million
for the year ended Dec. 31, 2021, a net loss and comprehensive loss
of $11.04 million for the year ended Dec. 31, 2020, a net loss and
comprehensive loss of $9.66 million for the year ended Dec. 31,
2019, and a net loss and comprehensive loss of $6.54 million for
the year ended Dec. 31, 2018.
San Francisco California-based WithumSmith+Brown, PC, the Company's
auditor since 2010, issued a "going concern" qualification in its
report dated March 31, 2023, citing that the Company has a history
of recurring losses and negative cash flows from operations that
raise substantial doubt about its ability to continue as a going
concern.
OAKWOOD DREAMS: Marwah Trust Says Disclosures Inadequate
--------------------------------------------------------
The Marwah Family Trust objects to the Disclosure Statement filed
by Oakwood Dreams, LLC.
The Marwah Trust objects to the Debtor's disclosures regarding its
Income Projections and Plan Payout Projections. The Debtor did not
provide any income projections or estimated plan distribution
projections. The Debtor merely states that it "anticipates making
approximately $25,000 or more each month within the next couple
months," and that "Debtor's projections provide for payment in full
to all creditors with interest." However, the Debtor has failed to
provide the necessary supporting details for claimants to evaluate
the Debtor's assertions and make an informed decision about the
plan of reorganization.
The Marwah Trust points out that as to Class 2-A: Impaired Secured
Claims – Marwah, the Disclosure Statement does not state the
proposed amount of the Allowed Class 2-A Secured Claim. The Marwah
Trust has an Allowed Secured Claim of $2,969,095.03 based on Proof
of Claim No. 4 filed on June 30, 2023. The Debtor states that the
Marwah Trust will receive interest-only payments for 12 months, but
it does not specify the monthly payment amount; and then principal
and interest payments of $16,241.00, but the Marwah Trust asserts
that the monthly principal and interest payments would be at least
$21,786.17. Moreover, the Debtor states that "Class 2-A will be
paid in full with a balloon payment after seven years (84 months)."
However, the disclosure statement fails to provide any information
about the source of funds available to Debtor to make the proposed
balloon payment. The disclosure statement must reference the amount
of Marwah Trust's Allowed Secured Claim as it directly affects the
Debtor's income and expense projections, including feasibility of
the plan and resulting funds available for distribution to general
unsecured creditors.
The Marwah Trust objects to the Debtor's disclosures regarding the
Significant Events During the Chapter 11 Proceedings. On June 8,
2023, the Court entered an Order Granting Adequate Protection.
Pursuant to the Adequate Protection Order, the Debtor was required
to immediately pay $30,000 to the Marwah Trust, and then $10,000
per month beginning on July 1, 2023. To date, the Debtor has not
made any of the payments required by the Adequate Protection Order.
To provide adequate information, the Debtor must revise the
disclosure statement to include details regarding the Adequate
Protection Order and the status of Debtor's compliance with that
order.
The Marwah Trust asserts that the Disclosure Statement does not
provide sufficient information in the Liquidation Analysis. The
Debtor asserts that "all creditors would be paid in full in a
liquidation" without providing any details about the liquidation
value of Debtor's assets or estimated administrative expenses,
among other necessary information. Accordingly, the Debtor has
failed to provide adequate information regarding the estimated
return to creditors in liquidation.
The Marwah Trust objects to the Debtor's disclosures regarding the
source of information in the disclosure statement, the accounting
process used and the identity of the person who furnished the
information, and the future management of the Debtor.
Attorneys for The Marwah Family Trust:
Pernell W. McGuire, Esq.
M. Preston Gardner, Esq.
DAVIS MILES MCGUIRE GARDNER, PLLC
40 E. Rio Salado Parkway, Suite 425
Tempe, AZ 85281
Telephone: (480) 733-6800
Facsimile: (480) 733-3748
Efile.dockets@davismiles.com
About Oakwood Dreams
Oakwood Dreams, LLC, owns a single-family home located at 21 E.
Oakwood Hills Drive, Chandler, Ariz., valued at $3.41 million based
on estimates provided by Zillow.
Oakwood Dreams filed a petition for relief under Subchapter V of
Chapter 11 of the Bankruptcy Code (Bankr. D. Ariz. Case No.
23-01008) on Feb. 20, 2023. In the petition filed by Dallas
Baldry, trustee of Bella Vita Ventures Trust, the Debtor reported
total assets of $3,914,700 and total liabilities of $2,493,877.
The Debtor is represented by Chris D. Barski, Esq., at Barski Law,
PLC.
OKAYSOU CORP: Has Deal on Cash Collateral Access
------------------------------------------------
Okaysou Corporation, Amazon Capital Services, Inc. and Amazon.com
Services LLC advised the U.S. Bankruptcy Court for the Central
District of California, Riverside Division, that they have reached
an agreement regarding the Debtor's use of cash collateral and now
desire to memorialize the terms of this agreement into an agreed
order.
The Debtor sells its products on the Amazon Store pursuant to the
terms of the Amazon Services Business Solutions Agreement, an
executory contract, together with applicable service terms,
policies, and other agreements. The BSA provides that the Debtor is
responsible for reimbursing Amazon for refunds and returns and for
any claims Amazon receives or initiates under the "A-to-Z
Guarantee" or the "A-to-Z Claims Process for Property Damages and
Personal Injury." In addition, the BSA provides Amazon.com may
establish a reserve on the Debtor's Amazon Seller Account based on
its assessment of risks to Amazon or third parties posed by the
Debtor's actions or performance, the amount of which may be
modified from time to time at Amazon.com's sole discretion.
ACS loaned the Debtor the principal amount of $900,000 pursuant to
a written loan agreement dated November 27, 2022. As of April 5,
2023, there was $617,091 owed by the Debtor pursuant to the terms
of the Loan Agreement. Interest accrues on the loan at the rate of
12.99% per annum. The Loan Agreement requires the Debtor to make
monthly payments to ACS of $80,381.
Pursuant to the terms of the Loan Agreement, the Debtor granted ACS
liens on and security interests in its inventory in Amazon
fulfillment centers, the Debtor's Seller Account, and substantially
all of the Debtor's assets including but not limited to its
equipment, goods, inventory, and accounts. ACS properly perfected
its security interests in the Prepetition Collateral by filing
UCC-1 financing statement with the California Secretary of State on
May 8, 2021.
The parties agree that the Debtor may use cash collateral. Amazon
agrees to provide access credentials to the Debtor's Chief
Restructuring Officer David Mickelson to enable the Debtor to
access the Seller Account within five business days of the entry of
the order approving the stipulation.
Amazon will distribute, and the Debtor will be allowed to withdraw
up to $30,000 per month from its sale proceeds to cover its
operating expenses, administrative fees and other costs during the
bankruptcy case in accordance with the budget, with a 15%
variance.
To satisfy Amazon's right to adequate protection for any diminution
in value of its alleged interest in the cash collateral, pursuant
to 11 U.S.C. sections 361,363, and 552(b), to the extent the Debtor
uses cash collateral, Amazon is granted valid, attached, choate,
enforceable, perfected, and continuing security interests in, and
liens upon, all post-petition assets of the Debtor of the same
character and type, to the same nature, extent, and validity as the
items and encumbrances of Amazon attached to the Debtor’s assets
prior to the petition date.
A copy of the stipulation is available at
https://urlcurt.com/u?l=HMIPcw 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: Court OKs Interim Cash Collateral Access
--------------------------------------------------------------
The U.S. Bankruptcy Court for the District of New Jersey authorized
Onorati Construction Co., Inc. to use cash collateral on an interim
basis in accordance with the budget, with a 25% variance, to meet
its ordinary cash needs and for such other purposes as may be
approved in writing by the secured lender.
The Debtor needs to pay actual, necessary and ordinary expenses to
(a) maintain and preserve his properties; and (b) continue
operation of the properties, including but not limited to payment
for adequate protection, utilities, payroll, payroll taxes, and
insurance expenses as reflected in the Cash Collateral Budget.
As previously reported by the Troubled Company Reporter, 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.
As adequate protection, the SBA is granted replacement valid,
binding, enforceable non-avoidable, and automatically perfected
post-petition security interests in and liens on all property,
whether now owned or hereafter acquired or existing and wherever
located, of the Debtor and the Debtor's estate.
If any Diminution in Value, the Secured Lender will have a
superpriority administrative expense claim, senior to any and all
claims against the Debtor, whether in the proceeding or in any
superseding proceeding.
The replacement lien and security interest granted are
automatically deemed perfected upon entry of this Order without the
necessity of the Secured Lender taking possession, filing financing
statements, mortgages, or other documents.
The Debtor's authorization, and the Secured Lender's consent, to
use cash collateral will terminate, upon written notice to the
Debtor, on the earliest to occur of any of the following:
i. The first business day that is 90 days after the Petition
Date (unless such period is extended by Secured Lender in its sole
discretion, such extension will not be unreasonably withheld) if
the Final Order has not been entered by the Court on or before such
date;
ii. The failure of the Debtor to comply with any provision,
covenant or agreement in the Order (including, without limitation,
any failure to comply with the Budget, subject to any permitted
variance);
iii. An order dismissing the Chapter 11 Case or converting the
Chapter 11 Cases to a case under chapter 7 of the Bankruptcy Code;
or
iv. An order in the Chapter 11 Case modifying, staying,
reversing or vacating the Order, without the prior consent of
Secured Lender.
The Debtor will make adequate protection payments to the Secured
Lender (interest only) in the amount of $1,283 per month starting
August 1, 2023.
A final hearing on the matter is set for July 20 at 10 a.m.
A copy of the Court's order and the Debtor's budget is available at
https://urlcurt.com/u?l=wkZnp6 from PacerMonitor.com.
The Debtor projects total expenses, on a monthly basis, as
follows:
$364,274 for July 2023;
$364,275 for August 2023; and
$364,276 for September 2023.
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.
Judge Stacey L. Meisel oversees the case.
Anthony Sodono, III, Esq., at McManimon, Scotland & Baumann, LLC,
is the Debtor's counsel.
PHI GROUP: Tam Bui Quits as COO, Director
-----------------------------------------
Effective July 1, 2023, Mr. Tam Bui resigned from his positions a
Member of the Board of Directors and chief operating officer of PHI
Group, Inc. (n/k/a Philux Global Group Inc.) There were no
disagreements with the Company's management regarding policies or
operations which lead to Mr. Bui's resignation decision, the
Company disclosed in a Form 8-K filed with the Securities and
Exchange Commission.
Effective July 1, 2023, the Company's Board of Directors appointed
Mr. Steve Truong as a new member of the Board of Directors.
Born in 1960, Mr. Truong brings to the Company a wealth of
comprehensive knowledge in the areas of operation, finance, general
management, strategic research and analysis, policy development and
investigation. He holds a Bachelor of Economics from the
University of Waterloo, a Bachelor of Business Administration from
Simon Fraser University, a Master of Business Administration from
Taft University, and is currently pursuing a Doctor of Business
Administration from California Southern University.
Mr. Truong has work experience in both private and public sectors.
He has held various senior positions during his career.
Previously, as a Naval Officer with the Royal Canadian Navy, he
coordinated, liaised, and provided logistical support to
operational and administrative military units at a national and
international level, including the Canadian Armed Forces' United
Nations (UN) taskings.
Mr. Truong has been actively involved in negotiating and arranging
debt financing and equity investment, between international lenders
and investment institutions and for clients seeking funding for
projects. He has also been assisting in mergers and acquisition
activities, as well as assisting private companies to get listed in
the US Stock Markets. He holds a Series 65 license – Uniform
Investment Advisers from the North American Securities
Administrators Associations. He currently serves as a member of
the Board of Directors and Secretary of Sports Pouch Beverage
Company, Inc., a Nevada corporation, and a member of the Board of
Directors, Vice President and Secretary of Chinh Picasso Global
Group, Inc., a Wyoming corporation.
About PHI Group
Headquartered in Irvine, California, PHI Group, Inc.
(www.phiglobal.com) is primarily engaged in mergers and
acquisitions, advancing PHILUX Global Funds, SCA, SICAV-RAIF, a
"Reserved Alternative Investment Fund" under the laws of
Luxembourg, and establishing the Asia Diamond Exchange in Vietnam.
Besides, the Company provides corporate finance services, including
merger and acquisition advisory and consulting services for client
companies through its wholly owned subsidiary PHILUX Capital
Advisors, Inc. (formerly PHI Capital Holdings, Inc.) and invests in
selective industries and special situations aiming to potentially
create significant long-term value for the Company's shareholders.
PHILUX Global Funds intends to include a number of sub-funds for
investment in select growth opportunities in the areas of
agriculture, renewable energy, real estate, infrastructure, and the
Asia Diamond Exchange in Vietnam.
PHI Group reported a net loss of $21.15 million for the year ended
June 30, 2022, compared to a net loss of $6.55 million for the year
ended June 30, 2021. As of Dec. 31, 2022, the Company had $508,632
in total assets, $7.39 million in total liabilities, and a total
stockholders' deficit of $6.88 million.
Bangalore, India-based M.S. Madhava Rao, the Company's auditor,
issued a "going concern" qualification in its report dated Jan. 13,
2023, citing that Company has an accumulated deficit of $71,717,973
and had a negative cash flow from operations amounting to
$1,545,570 for the year ended June 30, 2022. These factors raise
substantial doubt about the Company's ability to continue as a
going concern.
PRESBYTERIAN RETIREMENT: Fitch Affirms 'BB' IDR, Outlook Stable
---------------------------------------------------------------
Fitch Ratings has affirmed at 'BB' the Issuer Default Rating (IDR)
of Presbyterian Retirement Communities Northwest Obligated Group
(PRCN; d/b/a/ Transforming Age [TA]). Fitch has also affirmed at
'BB' the ratings on the series 2013, 2015, 2016A, 2016B, 2019A,
2019B, and 2019C revenue bonds issued by the Washington State
Housing Finance Commission on behalf of TA.
The Rating Outlook is Stable.
ENTITY/DEBT RATING PRIOR
----------- ------ -----
Presbyterian Retirement
Communities Northwest (WA) LT IDR BB Affirmed BB
Presbyterian Retirement LT BB Affirmed B
Communities Northwest (WA) /General
Revenues/1 LT
The 'BB' rating reflects TA's robust historical census levels,
adequate operations and liquidity position, and its high leverage
position and execution risks associated with its independent living
unit (ILU) expansion project. TA's expansion project entails
filling a new 21-story tower (Olympic Tower) with 77 new ILUs at
its Skyline campus. The project was completed in September 2021 and
fill has lagged expectations. Fitch, however, still expects the
project to be accretive to TA's financial and operating profiles,
with solid increase in top-line revenues and total cash flow levels
and an initial entrance fee pool of approximately $100 million.
TA's initial entrance fees received in 2022 were used to pay down
temporary debt associated with the project. As census increases at
the tower, new entrance fees are expected to boost TA's
unrestricted reserves. The Stable Outlook reflects Fitch's
expectation that TA has enough financial cushion at its current
rating level to absorb operating pressures resulting from labor
shortages and rising operating expenses, as it continues working to
fill its Olympic Tower expansion project.
SECURITY
The bonds are secured by the obligated group's (OG) gross revenues,
a mortgage on the OG's facilities and debt service reserve funds.
KEY RATING DRIVERS
Revenue Defensibility - 'bbb'
Strong Historical Demand; Lingering Pandemic Pressures
TA's revenue defensibility is assessed at 'bbb', reflecting its
strong historical ILU census levels, coupled with lingering
pandemic pressures that have softened census across all service
lines and resulted in slower fill of its Olympic Tower expansion
project. Over the last five fiscal years, TA averaged a strong 91%
in its ILUs, 93% in its assisted living units (ALUs), 90% in its
memory care units (MCUs), and 80% in its skilled nursing facility
(SNF) beds.
At the six-month interim period (ending March 31, 2023), TA
averaged 85% in its ILUs, 82% in its ALUs, 78% in its MCUs, and 93%
in its SNF. The decline in census across service lines is a is a
result of lagging fill of the Olympic Tower expansion project as a
result of lingering pandemic pressures that resulted in a
broadening of the sales cycle to 18 months. Fitch expects that
managements sales strategy, which includes targeted lead generation
and incentive plans will continue to help fill the Olympic Tower
expansion project. Management is expecting 75% occupancy by the end
of August.
TA operates three senior living campuses in and around the Seattle
area. While the three campuses are largely in the same geographic
area, Fitch views the diversification of revenues among the three
campuses positively, which supports its midrange revenue
defensibility assessment. Overall, Fitch believes TA operates in a
service area with favorable economic indicators, strong
demographics, and a moderate competitive environment. Despite some
competition, Fitch expects TA's diverse contract offerings,
attractive campuses, and favorable local reputation to support its
solid market position moving forward.
TA has a solid track record of annual increases in both its
entrance fees and monthly across all campuses. Over the past few
years, TA has increased its monthly service fees between 3%-6%, and
its entrance fees averaging 4% reflecting the strong historical
local real estate market. With a wide range of unit and contract
offerings, most of TA's units remain in line with local housing
prices. However, its more expensive units remain higher than median
home values.
Additionally, the weighted average entrance fees for TA's new ILUs
are high at approximately $1million and also remain higher than the
median home prices in TA's primary service area. However, the
median net worth and annual income levels of the current depositors
are well in excess of the amounts required for admission and
mitigate some concerns surrounding affordability. Regardless, Fitch
believes TA's higher priced units could experience affordability
issues in periods of economic or financial market stress which is
reflected in its midrange revenue defensibility assessment.
Operating Risk - 'bbb'
Adequate Operations; Expected to Improve
TA's operating risk is assessed at 'bbb' reflecting its adequate
operations in recent years, which are expected to improve as its
Olympic Tower expansion project continues to fill, its manageable
capital needs, and its high debt burden. TA's operational
performance has been volatile in recent years as a result of the
new project being completed and operational coupled with operating
pressures from inflation and staffing challenges. Operational
performance is showing some stabilization as evidenced by TA's 107%
operating ratio and 10.2% net operating margin (NOM). TA's net
entrance fee receipts and overall cash flow levels are showing
improvement as evidenced by its 20.4% NOM-adjusted (NOMA) in fiscal
2022.
TA offers a variety of contract offerings across its three senior
living facilities. At its Skyline campus, the most common contract
is the 80% refundable Type-A, and TA also offers 50% refundable,
and nonrefundable (traditional) lifecare (Type-A) contracts. On
rare occasions, TA also offers Type-B contracts.
At its Park Shore campus, TA offers 90% refundable, 50% refundable,
and traditional modified contracts. Park Shore's modified contracts
come with 30 free days in its health center. Each of TA's lifecare
and modified contracts have upfront entrance fees and ongoing
monthly fees. At its Fred Lind Manor campus, only rental contracts
are offered
Fitch expects TA's robust net entrance fee receipts to continue to
supplement weaker operations given the structure of its contracts.
Additionally, TA's expansion project is expected to continue to be
accretive to its financial profile, with enhanced top-line revenues
and overall cash flow levels that should translate into improved
operational metrics following project completion and
stabilization.
Overall, TA's operational performance remains adequate for a
primarily Type-A provider, and Fitch expects TA's key metrics to
improve significantly following completion and stabilization of its
ILU expansion project.
Financial Profile - 'bb'
Financial Profile Expected to Improve
TA's improving census levels and entrance fee receipts have driven
steady improvement in its cash reserves in recent years. At the
six-month interim period, TA had approximately $51.3 million in
unrestricted cash and investments, which translates into 312 days
cash on hand, 20.1% cash-to-adjusted debt, and 5.3x cushion ratio.
TA's unrestricted reserves and key leverage metrics are expected to
continue to improve over the short-term as the new ILU units
continue to fill, which will boost total cash flow levels. Initial
entrance fees received were used to pay down temporary debt of
approximately $51 million and future entrance fees will grow its
unrestricted reserves.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
-- Any continued fill-up delays, or service disruptions that lead
to further decline of operating performance.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
-- Successful fill of its ILU expansion project, and improvement
in its key financial metrics such that cash-to-adjusted debt and
coverage levels are above 40% and 1.5x, respectively;
-- Improvement and maintenance of its ILU census consistently
above 95% that results in revenue defensibility assessment
increasing to 'a'.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Sovereigns, Public Finance
and Infrastructure issuers have a best-case rating upgrade scenario
(defined as the 99th percentile of rating transitions, measured in
a positive direction) of three notches over a three-year rating
horizon; and a worst-case rating downgrade scenario (defined as the
99th percentile of rating transitions, measured in a negative
direction) of three notches over three years. The complete span of
best- and worst-case scenario credit ratings for all rating
categories ranges from 'AAA' to 'D'. Best- and worst-case scenario
credit ratings are based on historical performance.
PROFILE
PRCN was renamed TA, in 2016, to better reflect the organization's
mission and values, and plan to expand its geographic reach, and
offer more senior housing options beyond the Pacific Northwest. The
PRCN OG now does business as TA Seattle OG. The OG includes TA and
three senior living facilities - Park Shore, Skyline and Fred Lind
Manor, all located in the Seattle metropolitan area.
Park Shore is a Type B life plan community (LPC) located in the
Madison Park neighborhood in Seattle on Lake Washington. Skyline is
mostly a Type A LPC located in downtown Seattle. Fred Lind Manor
affiliated with PCRN in October 2014 is located in the Capitol Hill
neighborhood of Seattle. Across the three campuses TA has 382 ILUs,
186 AL/MC units and 56 SNF units. In fiscal 2022, the TA OG
reported approximately $67.5 million in total operating revenues.
Sources of Information
In addition to the sources of information identified in Fitch's
applicable criteria, this action was informed by information from
Lumesis.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING
The principal sources of information used in the analysis are
described in the Applicable Criteria.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
RAPID P&P: Donald Brady Named Subchapter V Trustee
--------------------------------------------------
The Acting U.S. Trustee for Region 13 appointed Donald Brady, Esq.,
at Brady Law Firm as Subchapter V trustee for Rapid P&P, LLC.
Mr. Brady will be paid an hourly fee of $300 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred. In case travel becomes necessary outside of
northwest Arkansas, the Subchapter V trustee will seek a rate of
$60 per hour for actual travel time.
Mr. Brady declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Donald A. Brady, Esq.
Brady Law Firm
249 North Main
Cave Springs, AR 72718
Phone: 479-935-2632
Email: don@bradylaw-nwa.com
About Rapid P&P
Rapid P&P, LLC, doing business as Rapid Prototypes, is a
Bentonville-based packaging services company founded in 2003. It
builds corrugated packaging and display prototypes for retail
suppliers, which are abundant in Northwest Arkansas.
Rapid P&P filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. W.D. Ark. Case No. 23-70907) on June 30,
2023, with $3,097,943 in assets and $6,399,344 in liabilities. Kyle
Jack, owner, signed the petition.
Judge Bianca M. Rucker oversees the case.
Stanley V. Bond, Esq., at Bond Law Office is the Debtor's counsel.
REDEEMED CHRISTIAN: Plan Filing Deadline Extended to Oct. 31
------------------------------------------------------------
Judge Lori S. Simpson has entered an order granting the motion to
extend the time for four months on filing a Chapter 11 Plan of
Reorganization and a Disclosure Statement of Redeemed Christian
Church of God River of Life. The time for filing a Plan and
Disclosure Statement is extended and fixed at no later than October
31, 2023.
Attorney for the Debtor:
John D. Burns, Esq.
THE BURNS LAWFIRM, LLC
6305 Ivy Lane; Suite 340
Greenbelt, MD 20770
About Redeemed Christian Church of God
River of Life
The Redeemed Christian Church of God, River of Life is a tax-exempt
religious organization in Riverdale, Md.
The Debtor filed its voluntary petition for Chapter 11 protection
(Bankr. D. Md. Case No. 21-14554) on July 9, 2021, listing as much
as $10 million in both assets and liabilities. This case has been
consolidated with an older Chapter 11 case (Bankr. D. Md. Case No.
20-11902) filed by the Debtor on Feb. 13, 2020.
Judge Thomas J. Catliota oversees the Debtor's bankruptcy case.
John D. Burns, Esq., at The Burns Law Firm, LLC serves as the
Debtor's legal counsel.
RELOADED GAMES: Seeks $25,000 DIP Loan
--------------------------------------
Reloaded Games, Inc. asks the U.S. Bankruptcy Court for the Central
District of California, Santa Ana Division, for authority to use
cash collateral and borrow up to $25,000 from an insider, Bjorn
Book-Larsson, on an administrative expense basis to meet its
proposed budget.
The Debtor needs the funding from Book-Larsson to allow the Debtor
to propose and confirm a sale of the primary assets of the Estate,
the Volvo contract.
The loan has an interest rate of 5% and is due and payable through
the earlier of (a) September 30, 2023, and (b) the date on which
Reloaded DIP consummates a sale of the equity of its wholly-owned
subsidiary, Reloaded Technologies, Inc. or all or substantially all
of the assets of Reloaded Technologies.
The Debtor requires use of the cash collateral to pay the costs and
expenses associated with operating the Debtor's business through
September 1, 2023, with the intention of filing a plan of
reorganizing as required within 90-days and reorganizing
thereafter. As set forth more fully in the Budget, the Debtor's
primary expenses going forward relate to maintenance of the Volvo
contract which is the Debtor's primary source of cash flow at this
time.
The entities that assert an interest in cash collateral are:
Structural Capital Investments I, LP; Triple Point Capital; HNB
Capital; NMTY Capital; and Book-Larsson.
The Debtor intends to pay the first and second priority lienholders
regular monthly loan payments as called for under the loan and
pre-petition practice as adequate protection (i.e., for Structural
Capital a payment of 70% of the projected monthly cash flow from
the Volvo contract estimated to be $7,000 and for Triple Point
Capital a monthly payment of $1,000. For HNB Capital, NMTY Capital
and Book-Larsson the Budget proposes no post-petition payments.
For all secured creditors, and solely to the extent of any
diminution in the value of the cash collateral, the secured
creditors will receive replacement liens in assets of the same
kind, type, and nature as the collateral in which the secured
creditors held a lien, that is acquired after the petition date,
and the proceeds thereof.
The "Carve-Out" includes (1) fees required to be paid to the clerk
of the Court and the U.S. Trustee, including statutory interest,
(2) reasonable fees and expenses incurred by a trustee under 11
U.S.C. section 726(b) not to exceed $5,000, (3) Professional Fees
as set forth in the DIP Budget; and (4) all fee incurred by
Retained Professionals not to exceed $25,000 in the aggregate.
A copy of the motion is available at https://urlcurt.com/u?l=GKjHTS
from PacerMonitor.com.
About Reloaded Games, Inc.
Reloaded Games, Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 23-11269) on June 21,
2023. In the petition signed by Bjorn Book-Larsson, chief executive
officer, the Debtor disclosed up to $1 million in assets and up to
$10 million in liabilities.
James Andrew Hinds, Jr., Esq., at the Hinds Law Group, APC,
represents the Debtor as legal counsel.
RIALTO BIOENERGY: Taps B. Riley Securities as Financial Advisor
---------------------------------------------------------------
Rialto Bioenergy Facility, LLC seeks approval from the U.S.
Bankruptcy Court for the Southern District of California to employ
B. Riley Securities, Inc. as financial advisor.
The firm will provide these services:
a. review and analyze, from a financial perspective, the general
business, operations, financial condition and prospects of the
Debtor, and formulate and review with the Debtor a strategic plan
including timelines and milestones; evaluating and helping prepare
the short-term and long-term cash flow forecasts and budgets,
particularly in support of the Debtor's budget; assisting the
Debtor in identifying and assessing and finding potential sources
of DIP financing; assisting the Debtor with various business
activities, including cash management and ongoing financial
reporting and assisting the Debtor with the preparation of the
Debtor's monthly operating reports for filing with the Bankruptcy
Court; assisting the Debtor with preparation of its various
first-day motions, including providing written and when required
oral testimony in connection therewith; assisting the Debtor in
developing a proposed plan of reorganization and disclosure
statement, including the feasibility analysis and liquidation
analysis; and performing additional other financial advisory tasks
as the Debtor may require;
b. if determined to be needed by the Debtor, assist the Debtor
in its preparation of a Confidential Descriptive Memorandum
describing the Debtor, the securities and the transactions;
c. if determined to be needed by the Debtor, develop and review
with the Debtor a schedule of the lenders to whom the memorandum
will be provided;
d. participate, under the Debtor's direction and guidance, in
negotiations regarding a transaction with prospective and current
lenders and interested parties;
e. assist the Debtor, as requested, with other schedules,
analyses and communications relating to a transaction; and
f. provide testimony with respect to B. Riley's work, including
with respect to valuation and budget issues, and make itself
available to attend bankruptcy court hearings and related
depositions.
The firm will be paid as follows:
a. An initial non-refundable fee of $50,000.
b. A monthly fee of $40,000.
c. Cash fees to be paid as follows:
i. Concurrently upon the earlier to occur of in the case of
an in-court or out-of-court or prearranged in-court restructuring
transaction, the effectiveness of all necessary waivers, consents,
amendments or restructuring agreements between any entity
comprising the Debtor and the Debtor's creditors or the closing of
such restructuring transaction in each case during the term or
within 12 months following the expiration or termination of the
term (tail period), the firm shall earn, and the Debtor shall pay
the firm a transaction fee equal to 1 percent of the aggregate
transaction value of such restructuring transaction. Fifty percent
of any monthly fees actually received by the firm shall be applied
against any transaction fee for a restructuring.
ii. In the case of an in-court or out-of-court financing
transaction, concurrently with the consummation of such financing
transaction during the term or the tail period, the firm shall
earn, and the Debtor shall pay the firm, a transaction fee equal to
(i) 1 percent of the face amount of any securities senior in
priority to the Debtor's current secured debt and (ii) 2 percent of
the face amount of any securities junior or pari passu in priority
to the Debtor's current secured debt.
Perry Mandarino, senior managing director at B. Riley, 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:
Perry M. Mandarino
B. Riley Securities, Inc.
299 Park Avenue
New York, NY 10171
Tel: (201) 522-5497
Email: pmandarino@brileyfin.com
About Rialto Bioenergy Facility
Rialto Bioenergy Facility, LLC owns and operates a multi-feedstock
bioenergy facility in Rialto, Calif., which converts organic waste,
such as food waste, yard waste, and biosolids into carbon-negative
renewable natural gas, with capability to also generate renewable
electricity and soil amendment/fertilizer. The facility, the
largest in North America and valued at $196.6 million, utilizes
anaerobic digestion technology to convert the organic waste
received from waste haulers into renewable natural gas.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Calif. Case No. 23-01467) on May 25,
2023, with $100 million to $500 million in both assets and
liabilities. Yaniv Scherson, vice president, signed the petition.
Judge Christopher B. Latham oversees the case.
The Debtor tapped Ron Bender, Esq., at Levene, Neale, Bender, Yoo
and Golubchik, LLP as bankruptcy counsel; B. Riley Securities, Inc.
as financial advisor; and GlassRatner Advisory & Capital Group, LLC
as valuation consultant.
UMB Bank, N.A. as Indenture Trustee is represented by Nahal
Zarnighian, Esq., at Ballard Spahr, LLP.
The U.S. Trustee for Region 15 appointed an official committee to
represent unsecured creditors in the Debtor's Chapter 11 case. The
committee is represented by Brinkman Law Group, PC.
RIALTO BIOENERGY: Taps GlassRatner as Valuation Consultant
----------------------------------------------------------
Rialto Bioenergy Facility, LLC seeks approval from the U.S.
Bankruptcy Court for the Southern District of California to employ
GlassRatner Advisory & Capital Group, LLC as valuation consultant.
The firm's services include performing valuation of the Debtor in
connection with the bankruptcy case; attending and where necessary
testifying in any oral deposition or court proceeding; and
analyzing and commenting on any alternative valuation.
The firm will be paid at these rates:
Craig Jacobson, Managing Director $575 per hour
Bill Hughes, Managing Director $495 per hour
Jin Wang, Director $450 per hour
Eli Cattan, Associate $395 per hour
Directors and Associate Directors $325 to $450 per hour
Associates and Senior Associates $225 to $325 per hour
Prior to the petition date, the firm received retainers from the
Debtor totaling $93,220.51. As of the petition date, the total
amount of the retainers remaining was $23,812.50.
Craig Jacobson, managing director at GlassRatner, 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:
Craig Jacobson
GlassRatner Advisory & Capital Group, LLC
dba B. Riley Advisory Services
299 Park Avenue
New York, NY 10171
Direct: (212) 457-3315
Mobile: (917) 975-5766
Email: cjacobson@brileyfin.com
About Rialto Bioenergy Facility
Rialto Bioenergy Facility, LLC owns and operates a multi-feedstock
bioenergy facility in Rialto, Calif., which converts organic waste,
such as food waste, yard waste, and biosolids into carbon-negative
renewable natural gas, with capability to also generate renewable
electricity and soil amendment/fertilizer. The facility, the
largest in North America and valued at $196.6 million, utilizes
anaerobic digestion technology to convert the organic waste
received from waste haulers into renewable natural gas.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Calif. Case No. 23-01467) on May 25,
2023, with $100 million to $500 million in both assets and
liabilities. Yaniv Scherson, vice president, signed the petition.
Judge Christopher B. Latham oversees the case.
The Debtor tapped Ron Bender, Esq., at Levene, Neale, Bender, Yoo
and Golubchik, LLP as bankruptcy counsel; B. Riley Securities, Inc.
as financial advisor; and GlassRatner Advisory & Capital Group, LLC
as valuation consultant.
UMB Bank, N.A. as Indenture Trustee is represented by Nahal
Zarnighian, Esq., at Ballard Spahr, LLP.
The U.S. Trustee for Region 15 appointed an official committee to
represent unsecured creditors in the Debtor's Chapter 11 case. The
committee is represented by Brinkman Law Group, PC.
RUTHERFORD ENTERPRISES: Taps Bruner Wright as Counsel
-----------------------------------------------------
Rutherford Enterprises 1, LLC seeks approval from the U.S.
Bankruptcy Court for the Northern District of Florida to employ
Bruner Wright, P.A. to handle its Chapter 11 case.
The firm will be paid at these rates:
Robert C. Bruner $450 per hour
Byron Wright III $375 per hour
Samantha A. Kelley $350 per hour
Paralegal $150 per hour
The firm received a retainer of $16,738 from the Debtor.
Byron Wright III, Esq., a partner of Bruner Wright, PA, disclosed
in a courtfiling that the firm is a "disinterested person" as that
term isdefined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Byron Wright III, Esq.
Bruner Wright, PA
2810 Remington Green Circle
Tallahassee, FL 32308
Tel: (850) 385-0342
Fax: (850) 270-2441
Email: twright@brunerwright.com
About Rutherford Enterprises 1, LLC
Rutherford Enterprises 1, LLC, a company in Tallahassee, Fla.,
filed a petition under Chapter 11, Subchapter V of the Bankruptcy
Code (Bankr. N.D. Fla. Case No. 23-40217) on June 16, 2023, with
$100,000 to $500,000 in assets and $1 million to $10 million in
liabilities. Charles M Rutherford, Sr., manager, signed the
petition.
Byron W. Wright III, Esq., at Bruner Wright, P.A. is the Debtor's
legal counsel.
RYZE RENEWABLES: Seeks to Extend Plan Exclusivity to November 6
---------------------------------------------------------------
Ryze Renewables II, LLC and Ryze Renewables Las Vegas, LLC ask
the U.S. Bankruptcy Court for the District of Delaware to extend
the exclusive periods for filing of a chapter 11 plan and
solicitation of acceptances thereof to November 6, 2023 and
January 3, 2024, respectively.
The Debtors explained that, together with their professionals,
they have focused much of their time, energy, and resources on
smoothly transitioning into chapter 11 and implementing a complex
marketing and sale process in an effort to maximize the value of
the Debtors' estates. The Debtors believe that, in light of the
progress that they have made in the chapter 11 cases and their
demonstrated efforts to work cooperatively with their
stakeholders, it is reasonable and appropriate that they be
granted an extension of the exclusive periods.
Unless extended, the exclusive filing period and exclusive
solicitation period will expire on July 7, 2023 and September 5,
2023, respectively.
Pauline K. Morgan, Esq.
Edmon L. Morton, Esq.
Matthew B. Lunn, Esq.
Elizabeth S. Justison, Esq.
Timothy R. Powell, Esq.
YOUNG CONAWAY STARGATT & TAYLOR, LLP
Rodney Square
1000 North King Street
Wilmington, DE 19801
Tel: (302) 571-6600
Email: pmorgan@ycst.com
emorton@ycst.com
mlunn@ycst.com
ejustison@ycst.com
tpowell@ycst.com
- and -
Kelley A. Cornish, Esq.
Diane Meyers, Esq.
Kyle R. Satterfield, Esq.
PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP
1285 Avenue of the Americas
New York, NY 10019
Telephone: (212) 373-3000
Facsimile: (212) 757-3990
Email: kcornish@paulweiss.com
dmeyers@paulweiss.com
ksatterfield@paulweiss.com
About Ryze Renewables
Ryze Renewables II, LLC and Ryze Renewables Las Vegas, LLC were
formed in 2017 in connection with the planned repurposing of an
existing biofuels refinery located in Las Vegas, Nevada that,
once complete, will have the capacity to produce 7,500 barrels of
renewable diesel per day by converting non-edible renewable and
waste feedstocks to premium low-carbon fuels.
Debtors sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Del. Lead Case No. 23-10289) on March 9, 2023. In
the petition signed by Klaus Gerber as chief restructuring
officer,
the Debtor disclosed up to $100 million to $500 million in both
assets and liabilities.
Judge Mary F. Walrath oversees the case.
The Debtors tapped Young Conaway Stargatt & Taylor, LLP as legal
counsel; Paul, Weiss, Rifkind, Wharton, & Garrison LLP as
restructuring counsel, Stinson LLP as special construction
counsel, Alvarez & Marsal North America, LLC as CRO provider,
Guggenheim Partners, LLC as investment banker, and Stretto as
notice, claims & balloting agent and administrative advisor.
SEMILEDS CORP: Incurs $756K Net Loss in Third Quarter
-----------------------------------------------------
SemiLEDs Corporation filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $756,000 on $1.68 million of net revenues for the three months
ended May 31, 2023, compared to a net loss of $911,000 on $1.78
million of net revenues for the three months ended May 31, 2022.
For the nine months ended May 31, 2023, the Company reported a net
loss of $1.81 million on $4.53 million of net revenues compared to
a net loss of $1.59 million on $5.42 million of net revenues for
the nine months ended May 31, 2022.
As of May 31, 2023, the Company had $14.58 million in total assets,
$12.55 million in total liabilities, and $2.03 million in total
equity.
SemiLEDs stated, "The Company suffered losses from operations of
$3.2 million and $3.9 million, and net cash used in operating
activities of $1.5 million and $1.7 million for the years ended
August 31, 2022 and 2021, respectively. These facts and conditions
raise substantial doubt about the Company's ability to continue as
a going concern, even though gross profit on product sales was $1.4
million for the year ended August 31, 2022 compared to $1.0 million
for the year ended August 31, 2021. Loss from operations for the
three and nine months ended May 31, 2023 was $981 thousand and $2.3
million, respectively. Net cash used in operating activities for
the nine months ended May 31, 2023 was $645 thousand. Moreover, at
May 31, 2023, the Company's cash and cash equivalents had decreased
to $3.0 million. Management believes that it has developed a
liquidity plan...that, if executed successfully, should provide
sufficient liquidity to meet the Company's obligations as they
become due for a reasonable period of time, and allow the
development of its core business."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/0001333822/000095017023032139/leds-20230531.htm
About SemiLEDs
Headquartered in Miao-Li County, Taiwan, R.O.C., SemiLEDs --
http://www.semileds.com-- develops and manufactures LED chips and
LED components for general lighting applications, including street
lights and commercial, industrial, system and residential lighting,
along with specialty industrial applications such as ultraviolet
(UV) curing, medical/cosmetic, counterfeit detection, horticulture,
architectural lighting and entertainment lighting.
SemiLEDs reported a net loss of $2.73 million for the year ended
Aug. 31, 2022, compared to a net loss of $2.86 million for the year
ended Aug. 31, 2021. As of Feb. 28, 2023, the Company had $15.20
million in total assets, $12.52 million in total liabilities, and
$2.68 million in total equity.
Diamond Bar, California-based KCCW Accountancy Corp., the Company's
auditor since 2019, issued a "going concern" qualification in its
report dated Nov. 7, 2022, citing that the Company incurred
recurring losses from operations and has an accumulated deficit,
which raises substantial doubt about its ability to continue as a
going concern.
SPEED TRANS: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Speed Trans, LLC
3701 Pacific Highway East
Tacoma, WA 98424
Chapter 11 Petition Date: July 10, 2023
Court: United States Bankruptcy Court
Western District of Washington
Case No.: 23-41110
Judge: Hon. Mary Jo Heston
Debtor's Counsel: Jennifer L. Neeleman, Esq.
NEELEMAN LAW GROUP, P.C.
1403 8th Street
Marysville, WA 98270
Tel: (425) 212-4800
Fax: (425) 212-4802
Email: courtmail@expresslaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Arashdeep Singh as owner.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/VKA2UHY/Speed_Trans_LLC__wawbke-23-41110__0001.0.pdf?mcid=tGE4TAMA
STAGE LIGHTING: Wins Interim Cash Collateral Access
---------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida,
Jacksonville Division, authorized Stage Lighting Store, LLC to use
cash collateral on an interim basis in accordance with the budget.
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 "bare necessities" for day-to-day operations;
(c) prepetition wages to employees who are retained by the
Debtor moving forward; and
(d) additional amounts as may be expressly approved in writing
by Fox Capital Group Inc. and Small Business Administration.
As previously reported by the Troubled Company Reporter, the Debtor
operates five Vystar business accounts (3 checking and 2 savings)
and one Chase business account. The Debtor generates cash on a
point-of-sale basis. Revenues and receivables are constantly being
deposited in the Debtor's operating accounts.
To ensure monies would not be offset by Vystar upon filing, the
Debtor has on hand $24,000 in cash. The Debtor has $2,261 in its
Chase account and $571 spread across its Vystar accounts.
The Debtor believes Fox may allege an interest in cash collateral
as it has levied on the Debtor's bank account. The collateral
securing payment to Fox has a value of around $26,832.
The Court said 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.
The Debtor will maintain insurance coverage for its property in
accordance with the obligations under the loan and security
documents with the Secured Creditors.
As adequate protection, the Debtor will pay Fox 8% of its monthly
gross revenues during the pendency of the case until Fox is paid in
full.
The Debtor will pay the SBA adequate protection payments of $400
per month starting June 15, 2023.
A continued hearing on the matter is set for August 17 at 2 p.m.
A copy of the order is available at https://urlcurt.com/u?l=G2XwcK
from PacerMonitor.com.
About Stage Lighting Store, LLC
Stage Lighting Store, LLC is a stage lighting equipment supplier
for school play, professional production, event venue, and church
service needs.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 23-01061) on May 11,
2023. In the petition signed by its owner Russell Behrens, the
Debtor disclosed $226,028 in assets and $1,395,986 in liabilities.
Judge Jason A. Burgess oversees the case.
Donald M. DuFresne, Esq., at Parker & Dufresne, P.A., represents
the Debtor as legal counsel.
STITCH ACQUISITION: S&P Affirms 'CCC' ICR, Outlook Negative
-----------------------------------------------------------
S&P Global Ratings affirmed all ratings on U.S.-based Stitch
Acquisition Corp. (operating as SVP Worldwide), including its 'CCC'
issuer credit rating and its 'CCC' issue-level rating on its senior
secured term loan. S&P lowered the recovery rating to '4' from '3'
and revised its rounded recovery estimate on the first-lien term
loan to 40% from 50%, reflecting the issuance of pari passu senior
secured notes.
The negative outlook reflects the possibility that S&P could lower
its ratings over the next 12 months if the risk of a near-term
default increases such that S&P envisions a specific default
scenario occurring in the subsequent six months.
S&P removed the ratings from CreditWatch negative following the
company's issuance of new pari passu senior secured notes. SVP's
financial sponsor, Platinum Equity Partners, injected capital in
the form of senior secured notes totaling $50 million in December
2022. The company used the proceeds primarily to reducing
borrowings under the asset-based lending (ABL) facility to $10.7
million as of Dec. 31, 2022, from $47.5 million as of Sept. 30,
2022, with the remainder added to cash.
S&P said, "The 'CCC' rating reflects SVP's high leverage, rising
interest costs, and our expectation for FOCF deficits over the next
12-18 months amid a weak macroeconomic environment. In fiscal 2022,
the company's revenue and S&P Global Ratings-adjusted EBITDA
declined about 30% and 76%, respectively, hurt by softening
consumer demand, fewer replenishment orders from retailers, foreign
currency headwinds, and high input cost inflation. The trend
continued into the first quarter of 2023, when revenue and S&P
Global Ratings-adjusted EBITDA declined about 19% and 82%,
respectively. As a result, S&P Global Ratings-adjusted leverage
deteriorated to about 50x at the end of March 2023. We anticipate
that SVP's top-line recovery will be subdued in 2023 and note that
substantial uncertainties remain about consumer discretionary
spending and retailer appetite for reordering.
"Nevertheless, our forecasts assume that SVP's overall operating
cost inflation has peaked. We assume this, along with the company's
recent cost-savings initiatives and new product launches, will
drive S&P Global Ratings-adjusted EBITDA to about $35 million in
2023 compared with about $16 million in 2022.
"We continue to assess SVP's liquidity position as weak given
limited room on the ABL facility and high debt service
requirements. We estimate higher interest rates will increase SVP's
cash interest expense about 35% in 2023 compared with the previous
year. We expect that this, along with weak earnings, will continue
to pressure FOCF over the next 12-18 months. Additionally,
following the December 2022 paydown of the ABL borrowings with the
proceeds from the notes, the company drew about $30 million on the
ABL in the first quarter of 2023 to fund working capital outflows
(mainly its overdue vendor payables) and rising interest costs.
"As a result, we estimate availability under the ABL is only about
$7 million as of March 31, 2023, given our expectation that the
company would not comply with its springing minimum fixed-charge
coverage covenant if it becomes effective. We estimate the company
will require about $20 million to fund seasonal working capital
requirements in the third quarter of 2023 to build up its working
capital before the holiday selling season and would need to
potentially draw on the ABL. Therefore, absent a substantial
recovery in the second half of 2023, we believe the company could
need to raise additional liquidity to avoid a cash shortfall.
"The negative outlook reflects the potential for a lower rating
over the next 12 months if the risk of a near-term default
increases such that we envision a specific default scenario
occurring in the subsequent six months."
This could occur due to:
-- Continued weak economic conditions and consumer discretionary
spending;
-- Intensifying competition or a loss of major customers;
-- An inability to raise external capital to plug forecasted cash
shortfall; or
-- Poor replenishment orders from retailers.
S&P could take a positive rating action if:
-- Operating performance improves such that profit margins and
liquidity strengthen materially; and
-- The company generates sustained positive FOCF, and S&P
forecasts it will sustain EBITDA cash interest coverage comfortably
above 1.0x.
ESG credit indicators: E-2; S-2; G-3
SYNTHESIS INDUSTRIAL: Gen. Unsecureds Owed $5.9K Unimpaired in Plan
-------------------------------------------------------------------
Synthesis Industrial Holdings 1 LLC submitted an Amended First
Disclosure Statement.
The Debtor's current property portfolio consists of one property
and all improvements thereto located at 11604 Azul Celeste Place,
Las Vegas, Nevada 89138.
Under the Plan, Class 2 consists of a wholly Unsecured Claim in
Nevada Department of Taxation totaling $136,849.57 and impaired.
(a) On the Effective Date, the liens will not remain or have any
force or effect against the debtor's property.
(b) Principal Balance. The principal balance of the Class 2
claim will be the Allowed Claim in the amount of $0.00.
(c) Lien. From and after the Confirmation Date, the Holder of
the Class 2 wholly unsecured Claim will be fully released.
Recording of the Confirmation Order shall suffice to release the
Tax Liens in the real property records of Clark County, Nevada
recorded on December 1, 2014, as instrument number
20141201-0001108, and on July 11, 2017, as instrument number
20170711-0001175.
(d) Post-Effective Date Interest Rate. Interest will accrue on
the Class 2 Holders Claim at an interest rate of 0.00%.
(e) Valuation. The Class 2 Secured Claim will be revalued on the
effective date of this Plan, pursuant to sections 1123 and 506 of
the Bankruptcy Code, in accordance with the valuation of such
property as set forth in Class 1 of this Plan. The confirmation
order approving the plan will set forth the values of each secured
creditors wholly unsecured junior lien claims as of the effective
date of the Plan. The value of this property is tax assessed at
$441,294.00. The estimated fair market value, conditioned on an
appraisal, is expected to be valued at $565,000.00, which is based
on sales comparisons.
(f) Unsecured Portion of the Claim: Any amount of a Class 2
wholly unsecured claim that is deemed to be unsecured in accordance
with Class 1 above. The unsecured portion of this claim may be
treated in Class 7 below if class 2 files a timely claim. Recording
of the Confirmation Order shall suffice to release the tax liens in
the real property records of Clark County, Nevada recorded on
December 1, 2014, as instrument number 20141201-0001108, and on
July 11, 2017, as instrument number 20170711-0001175. This claim is
not enforceable against the Debtor because the Debtor is not
responsible for this claim. Should the Class 2 claim holder fail to
timely file a proof of claim, the class 3 claim/lien shall be
released from the Class 1 property but will remain against the
actual debtor.
Class 7 General Unsecured Claim total $5,944.81. Holders of Class 7
General Unsecured Claims on the Effective Date will receive 1
payment of $5,944.81. All portions of allowed Class 7 unsecured
claims that remain unpaid, and at the conclusion of the single
payment required under this Plan (the "Plan Term"), will cease 6
months after the Effective Date and shall be forever discharged and
rendered non-collectable against the Debtor. The Debtor's single
Plan Payment under the Plan shall be $5,945, which will be made
from the members' new value contributions. Creditors will recover
100% of their claims. Class 7 is unimpaired.
On the Effective Date payments to Creditors' in Classes 1, 3
through 7 shall be funded from the Debtor's rental income and
equity interest holder new value member contributions should the
rental income not be sufficient.
Payments to Class 7 creditors required under the Plan will be
funded by the Debtor's members as a single contribution of $5,945.
This single payment shall be paid within 180 days from the entry of
the confirmation order.
The Debtor's members recently sold a property in Idaho – Seminole
Ventures LLC [5 Tamarack Circle, Idaho City, Idaho 83631]. The
buyer Idaho Holdings & Management LLC, Ray Ronquillo's balloon
payment/maturity comes due on July 1, 2023. The cash from this note
payable will fund the Plan. Additionally, Debtor's other LLC, TB
Holdings LLC, has enough cash to make a contribution to fund the
Plan, which it will do so.
The Plan confirmation hearing will commence on August 23, 2023,
beginning at 9:30 a.m. (prevailing Pacific time), before the
Honorable Mike K. Nakagawa, United States Bankruptcy Judge, at the
United States Bankruptcy Court for the District of Nevada,
Courtroom 2, 300 Las Vegas Blvd South, Las Vegas, Nevada 89101.
The Bankruptcy Court has directed those objections, if any, to
confirmation of the Plan be served and filed so that they are
received on or before August 9, 2023, at 5:00 p.m. (prevailing
Pacific time).
Attorney for the Debtor:
Steven L. Yarmy, Esq.
7464 W Sahara Ave, STE 8
Las Vegas, NV 89117
Tel: (702) 586-3513
Fax: (702) 586-3690
E-mail: sly@stevenyarmylaw.com
A copy of the Disclosure Statement dated July 5, 2023, is available
at https://tinyurl.ph/YzSzE from PacerMonitor.com.
About Synthesis Industrial Holdings 1
Synthesis Industrial Holdings 1, LLC's current property portfolio
consists of one property and all improvements thereto located at
11604 Azul Celeste Place, Las Vegas, Nevada 89138. It was formed
on Sept. 15, 2017, for the purpose of acquiring distressed
property. Synthesis is a Nevada LLC with two members, which
membership interest is held individually by Christopher Craig and
Cristina Robertson.
The Debtor had filed a previous Chapter 11 case on Oct. 5, 2018
(Bankr. D. Nev. Case No. 18-15993), which was dismissed on August
22, 2022.
The Debtor again filed a Chapter 11 bankruptcy petition (Bankr. D.
Nev. Case No. 23-11321) on April 4, 2023, disclosing under $1
million in both assets and liabilities. Judge Mike K. Nakagawa
oversees the case. The Debtor is represented by Steven L. Yarmy,
Esq.
TANNER CONSTRUCTION: Taps Ruff & Cohen as Legal Counsel
-------------------------------------------------------
Tanner Construction Group, LLC seeks approval from the U.S.
Bankruptcy Court for the Northern District of Florida to employ
Ruff & Cohen, P.A. as counsel.
The firm's services include:
a) advising the Debtor concerning the operation of its
business in compliance with Subchapter V Chapter 11, the operating
guidelines of the Office of the U.S. Trustee, and orders of the
court;
b) prosecuting and defending any causes of action on behalf of
the Debtor;
c) preparing legal papers;
d) assisting in the formulation of a Chapter 11 plan of
reorganization;
e) assisting in obtaining confirmation of the plan; and
f) assisting in obtaining a discharge and a final decree.
Ruff & Cohen will be paid at the hourly rate of $300 and will be
reimbursed for out-of-pocket expenses incurred.
In addition, the firm will be paid a retainer in the amount of
$20,000, and $1,738 filing fee.
Lisa Cohen, Esq., a partner at Ruff & Cohen, disclosed in a court
filing that her firm is a "disinterested person" pursuant to
Section 101(14) of the Bankruptcy Code.
Ruff & Cohen can be reached at:
Lisa C. Cohen, Esq.
Ruff & Cohen, P.A.
4010 W Newberry Rd Ste G
Gainesville, FL 32607-2368
Tel: (904) 720-0070
Email: lisacohen@bellsouth.net
About Tanner Construction Group
Tanner Construction Group, LLC sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. N.D. Fla. Case No. 23-10112) on
June 16, 2023. In the petition signed by Christopher M. Tanner,
managing member, the Debtor disclosed $510,198 in assets and
$1,859,277 in liabilities.
Lisa C. Cohen, Esq., at Ruff & Cohen, P.A., represents the Debtor
as legal counsel.
TECH-MAR ENTERPRISES: Files Emergency Bid to Use Cash Collateral
----------------------------------------------------------------
Tech-Mar Enterprises LLC asks the U.S. Bankruptcy Court for the
Southern District of Texas, Houston Division, for authority to use
cash collateral in accordance with the budget, with a 5% variance.
A search in the Texas Secretary of State shows that allegedly
secured positions in cash collateral are held by (1) U.S. Small
Business Administration (UCC # 20-0018199454); (2) Internal Revenue
Service (UCC # 20-0061014680); (3) On Deck Capital (UCC #
22-0004086204); (4) Unknown Creditor (UCC # 22-0023814224); (5)
DMKA (UCC # 22-0059865784); and (6) QFS Capital (UCC #
23-0001184877).
Emergency consideration is requested because the Debtor depends on
the use of cash collateral for payroll, office lease, inventory
purchases, supplies, and other general operating expenses. If the
Debtor is unable to use cash collateral, it will be forced to cease
operations.
A copy of the motion is available at
https://urlcurt.com/u?l=OibO8J from PacerMonitor.com.
A copy of the budget is available at https://urlcurt.com/u?l=7TXMUu
from PacerMonitor.com.
The Debtor projects $200,920 in cash receipts and $184,225 in cash
disbursements.
About Tech-Mar Enterprises LLC
Tech-Mar Enterprises LLC is an IT service provider. The Debtor
sought protection under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. S.D. Tex. Case No. 23-32570) on July 10, 2023. In the
petition signed by Bernard J Marino III, president, the Debtor
disclosed $182,174 in assets and $1,544,635 in liabilities.
Judge Eduardo V. Rodriguez oversees the case.
Robert C. Lane, Esq., at the Lane Law Firm, represents the Debtor
as counsel.
TEXARKANA ARKANSAS: Taps Keech Law Firm as Bankruptcy Counsel
-------------------------------------------------------------
Texarkana Arkansas Hospitality, LLC seeks approval from the U.S.
Bankruptcy Court for the Western District of Arkansas to employ
Keech Law Firm, PA to handle its Chapter 11 case.
The firm will be paid at these rates:
Kevin P. Keech $400 per hour
Paralegals $150 per hour
Legal Assistants $125 per hour
In addition, the firm will seek reimbursement for out-of-pocket
expenses incurred.
The firm received from the Debtor an advance payment of $15,000.
Kevin Keech, Esq., at Keech Law Firm, disclosed in a court filing
that he and his firm neither hold nor represent an interest adverse
to the Debtor and its bankruptcy estate.
The firm can be reached through:
Kevin P. Keech, Esq.
Keech Law Firm, PA
2011 S. Broadway St.
Little Rock, AR 72206
Tel: (501) 221-3200
Fax: (501) 221-3201
Email: kkeech@keechlawfirm.com
About Texarkana Arkansas Hospitality
Texarkana Arkansas Hospitality, LLC owns and operates a Comfort
Suites hotel located in Texarkana, Ark. The property is valued at
$7.5 million.
Texarkana Arkansas Hospitality filed for Chapter 11 bankruptcy
protection (Bankr. W.D. Ark. Case No. 23-70804) on June 8, 2023,
with $7,832,764 in total assets and $4,003,876 in total
liabilities. Sukhpal Singh, member of Texarkana Arkansas
Hospitality, signed the petition.
Judge Richard D. Taylor presides over the case.
Kevin P. Keech, Esq., at Keech Law Firm, PA, serves as the Debtor's
counsel.
TK CLEANING: Taps Meares Property Advisors as Sales Agent
---------------------------------------------------------
TK Cleaning & Lawn Service, LLC received approval from the U.S.
Bankruptcy Court for the District of South Carolina to employ
Meares Property Advisors, Inc.
The Debtor requires the services of a sales agent to market for
sale its personal properties, which include vehicles, trailers and
equipment.
The firm will get a commission of 10 percent of the gross sales
proceeds. For auction sales, the firm will be paid a 5 percent
buyer's premium.
Darron Meares, a partner at Meares Property Advisors, 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:
Darron Meares
Meares Property Advisors, Inc.
315 Eastview Road
Pelzer, SC 29669
Tel: (864) 642-2196
About TK Cleaning & Lawn Service
TK Cleaning and Lawn Service, LLC is a landscape service company in
Rock Hill, S.C.
TK Cleaning and Lawn Service filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. D.S.C. Case No.
22-03485) on Dec. 19, 2022, with $1 million to $10 million in both
assets and liabilities. Troy Kelley, owner, signed the petition.
Judge Helen E. Burris oversees the case.
The Debtor tapped Jane H. Downey, Esq., at Moore Bradley Myers Law
Firm, PA as legal counsel; Newpoint Advisors Corporation as
financial advisor; and BNA CPAs & Advisors as accountant.
On May 26, 2023, the court confirmed the Debtor's Chapter 11 small
business Subchapter V plan.
TPT GLOBAL: Posts $1.4 Million Net Loss in First Quarter
--------------------------------------------------------
TPT Global Tech, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
attributable to the Company's shareholders of $1.39 million on
$1.53 million of total revenues for the three months ended March
31, 2023, compared to a net loss attributable to the Company's
shareholders of $5.56 million on $1.88 million of total revenues
for the three months ended March 31, 2022.
As of March 31, 2023, the Company had $847,217 in total assets,
$34.54 million in total liabilities, $58.25 million in total
mezzanine equity, and a total stockholders' deficit of $91.94
million.
TPT Global said, "Based on our financial history since inception,
our auditor has expressed substantial doubt as to our ability to
continue as a going concern. As reflected in the accompanying
financial statements, as of March 31, 2023, we had an accumulated
deficit totaling $107,809,023. This raises substantial doubts
about our ability to continue as a going concern."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1661039/000165495423008776/tptw_10q.htm
About TPT Global Tech
TPT Global Tech Inc. (OTC:TPTW) based in San Diego, California, is
a technology-based company with divisions providing
telecommunications, medical technology and product distribution,
media content for domestic and international syndication as well as
technology solutions. It offers Software as a Service (SaaS),
Technology Platform as a Service (PAAS), Cloud-based Unified
Communication as a Service (UCaaS). TPT Global Tech offers
carrier-grade performance and support for businesses over its
private IP MPLS fiber and wireless network in the United States.
TPT Global Tech's cloud-based UCaaS services allow businesses of
any size to enjoy all the latest voice, data, media and
collaboration features in today's global technology markets. It
also operates as a Master Distributor for Nationwide Mobile Virtual
Network Operators (MVNO) and Independent Sales Organization (ISO)
as a Master Distributor for Pre-Paid Cell phone services, Cell
phone Accessories and Global Roaming Cell phones.
TPT Global reported a net loss attributable to the Company's
shareholders of $61.50 million for the year ended Dec. 31, 2022,
compared to a net loss attributable to the Company's shareholders
of $4.02 million for the year ended Dec. 31, 2021. As of Dec. 31,
2022, the Company had $1.05 million in total assets, $34.02 million
in total liabilities, $58.25 million in mezzanine equity, and a
total stockholders' deficit of $91.21 million.
Draper, UT-based Sadler, Gibb & Associates, LLC, the Company's
auditor since 2016, issued a "going concern" qualification in its
report dated May 16, 2023, citing that the Company has suffered
recurring losses from operations and has a net capital deficiency
that raise substantial doubt about its ability to continue as a
going concern.
TRINITY LEGACY: Court OKs Cash Collateral Access Thru Sept 30
-------------------------------------------------------------
The U.S. Bankruptcy Court for the District of New Mexico authorized
Trinity Legacy Consortium, LLC, an Oregon Limited Liability
Company, to use cash collateral to pay the expenses as set out in
the budget, with a 10% variance, for the period of July 1 through
September 30, 2023.
As previously reported by the Troubled Company Reporter, Trinity
Legacy owes two parties that are secured by the Debtor's intangible
assets:
-- The Small Business Administration, in the amount of
approximately $150,000. The SBA holds a security interest in all
tangible and intangible personal property, including, but not
limited to: (a) inventory, (b) equipment, (c) instruments,
including promissory notes (d) chattel paper, including tangible
chattel paper and electronic chattel paper, (e) documents, (f)
letter of credit rights, (g) accounts, including health-care
insurance receivables and credit card receivables, (h) deposit
accounts, (i) commercial tort claims, (j) general intangibles,
including payment intangibles and software, and (k) as-extracted
collateral as such terms may from time to time be defined in the
Uniform Commercial Code.
-- Forward Financing LLC, in the amount of approximately
$120,000. Forward Financing holds a security interest in the future
account receipts of the Debtor, pursuant to a Financing Approval
Statement, dated September 20, 2022.
The Debtor is in the process of reviewing and reconciling asserted
non-priority unsecured claims, but believes the claims are in
excess of $500,000.
The Debtor incurred a factoring loan with Forward Financing to help
meet expenses for the business, and in exchange gave a security
interest in the Debtor's future receipts. Payment on such loan gave
rise to the Debtor falling behind on other business expenses,
necessitating the filing for Chapter 11.
In addition, the Debtor is a defendant in several pending state
court litigations in connection with the Debtor's business
operations. The costs and fees associated with pursuing such
litigations in various jurisdictions, in addition to the financial
strain on the Debtor's operations, necessitated the bankruptcy
filing as the most efficient forum to reorganize the Debtor's
financial affairs.
The Court held that, without waiving any rights or defenses the
Debtor or any other party-in-interest may assert, the SBA and
Forward Financing are granted replacement liens on postpetition
collateral, to the same extent and with the same priority as they
held valid liens on such collateral pre-petition, without the
necessity of any filing or recording to establish perfection of
such post-petition liens.
In addition, the Debtor will continue to make monthly payments of
$750 to the SBA and $2,000 to Forward Financing, pursuant to their
contracts, with such payments constituting adequate protection
payments.
The Debtor is not authorized to expend any funds held in trust for
Builders FirstSource, Inc.
A copy of the Court's order and the Debtor's budget is available at
https://urlcurt.com/u?l=ZaEfrx from PacerMonitor.com.
The Debtor projects total expenses, on a monthly basis, as
follows:
$242,955 for July 2023;
$231,705 for August 2023; and
$231,405 for September 2023.
About Trinity Legacy Consortium, LLC
Trinity Legacy Consortium, LLC operates a construction and home
building business with locations in Farmington, New Mexico, and
Wallowa, Oregon.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.N.M. Case No. 22-10973) on December 7,
2022. In the petition signed by Jan Swift and Jacob Swift, managing
members, the Debtor disclosed up to $500,000 in assets and up to $1
million in liabilities.
Judge Robert H Jacobvitz oversees the case.
Dennis A. Banning, Esq., at NM Financial Law, P.C., is the Debtor's
legal counsel.
TRISTAR DRYWALL: Files Chapter 11 Petition
------------------------------------------
TriStar Drywall Inc. filed for chapter 11 protection in the
District of Colorado without stating a reason.
TriStar Drywall disclosed $3,416,659 in assets against $2,613,910
in debt owed to 1 to 49 creditors. The petition states that funds
will be available to unsecured creditors.
About TriStar Drywall Inc.
TriStar Drywall Inc. -- https://tristardw.com/ -- is a Colorado
based drywall contractor.
Tristar Drywall Inc. sought relief under Subchapter V of Chapter 11
of the U.S. Bankruptcy Code (Bankr. D. Col. Case No. 23-12920) on
July 2, 2023. In the petition filed by Daniel Haltom, as president,
the Debtor reports total assets of $3,416,659 and total liabilities
of $2,613,910.
Joli A. Lofstedt has been appointed as Subchapter V trustee.
Cohen & Cohen, P.C., is the Debtor's counsel. McDaniel Consulting
Group, LLC, via Gayle McDaniel, is providing tax and accounting
services to the Debtor.
The Debtor's counsel:
Katharine S. Sender, Esq.
Cohen & Cohen, P.C.
8599 Prairie Trail Dr. #500
Englewood, CO 80112
Tel: 303-933-4529
Email: ksender@cohenlawyers.com
TULEYRIES LAND: Gets OK to Hire Mike Torrence as Listing Agent
--------------------------------------------------------------
The Tuleyries Land Holdings, LLC received approval from the U.S.
Bankruptcy Court for the Western District of Virginia to employ
Mike Torrence as listing agent and auctioneer.
The Debtor needs the services of Mr. Torrence to market and sell
its real estate and the improvements located at 6987 John Mosby
Highway, Boyce, Va.
Mr. Torrence is a listing agent of Read Properties, Inc., doing
business as Coldwell Banker Commercial Read & Co., Realtors, and
the managing member of Torrence Read & Forehand Auctions, L.C.
Mr. Torrence will be paid as follows:
(a). Phase 1 consists of a listing period through Aug.31, 2023,
and Mr. Torrence will be paid a commission of 6 percent of the
purchase price if the property is sold during Phase 1.
(b) Phase 2 consists of an auction period to end on or before
Sept. 30, with Mr. Torrence paid a 6 percent buyer's premium that
is added to the highest bid, which will constitute the purchase
price, subject to the following exception: if the property sells to
FNB, no buyer's premium will be added to the purchase price.
(c) For sales during both the Phase 1 and Phase 2 periods, Mr.
Torrence and his firms will advance all of the out-of-pocket
expenses and will be reimbursed at closing from the proceeds of
sale, subject to the following exception: if the property sells to
FNB Bank Inc., the bank will reimburse Mr. Torrence and his firms
for all out-of-pocket expenses required for the sale.
As disclosed in court filings, Mr. Torrence is a "disinterested
person" pursuant to Section 101(14) of the Bankruptcy Code.
Mr. Torrence can be reached at:
Mike Torrence
Read Properties, Inc.
Torrence Read & Forehand Auctions, L.C.
101 Annjo Court
Forest, VA 24551
Tel: (434) 847-7741
Fax: (434) 847-7746
About The Tuleyries Land Holdings
Tuleyries Land Holdings, LLC filed a petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. W.D. Va. Case No.
23-50177) on April 11, 2023, with total assets of $5,204,500 and
total liabilities of $2,407,410. Robert Maxwell Emma, manager and
member, signed the petition.
Judge Rebecca B. Connelly oversees the case.
The Debtor is represented by H. David Cox, Esq., at Cox Law Group,
PLLC.
TWILIGHT HAVEN: Court OKs Cash Collateral Access Thru July 26
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of California,
Fresno Division, authorized Twilight Haven, a California nonprofit
corporation, to use cash collateral on an interim basis in
accordance with the budget, through July 26, 2023.
The Debtor has an immediate and ongoing need to access cash
collateral in which its secured creditor, the Small Business
Administration asserts an interest. The Debtor needs to make
payments to vendors for post-petition goods, maintenance of the
facilities and the Campus, employees, insurances, taxes and other
pertinent, ordinary expenses.
As adequate protection for the Debtor's use of cash collateral the
Secured Creditor will have replacement liens in the Debtor's pre-
and post-petition assets of the same type, validity and priority as
are subject to its valid pre-petition liens and security
interests.
The Secured Creditor's liens upon, and security interest in, the
replacement collateral are perfected without any other act or
filing upon entry of the Order.
A continued hearing on the matter is set for July 25 at 9:30 a.m.
A copy of the motion is available at https://urlcurt.com/u?l=Hzeomf
from PacerMonitor.com.
A copy of the order and the Debtor's budget is available at
https://urlcurt.com/u?l=s2u45U from PacerMonitor.com.
The Debtor projects total expenses, on a weekly basis, as follows:
$93,725 for the week starting July 10, 2023;
$45,608 for the week starting July 17, 2023;
$119,125 for the week starting July 24, 2023; and
$20,925 for the week starting July 31, 2023.
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.
UNITED FURNITURE: Trustee Taps Mullin as Special Counsel
--------------------------------------------------------
Derek Henderson, the Chapter 11 trustee for United Furniture
Industries, Inc. and its affiliates, seeks approval from the U.S.
Bankruptcy Court for the Northern District of Mississippi to employ
Mullin Hoard & Brown, LLP as special counsel.
The Debtors need the firm's legal assistance in connection with the
review, investigation, and if necessary, prosecution of claims
against professionals, directors and officers.
The firm will be paid at these rates:
Partners $425 per hour
Associates $225 to $300 per hour
Paralegals $110 to $175 per hour
David Mullin, Esq., a partner at Mullin, Hoard & Brown, 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:
David C. Mullin, Esq.
Mullin, Hoard & Brown, LLP
Amarillo National Plaza Two
500 South Taylor, Suite 800
Amarillo, TX 79101-2445
Tel: (806) 372-5050
Email: dmullin@mhba.com
About United Furniture Industries
United Furniture Industries, Inc. manufactures and sells
upholstery. It offers bonded leather and upholstery fabric
recliners, reclining sofas and loveseats, sectionals, and sofa
sleepers, as well as stationary sofas, loveseats, chairs, and
ottomans.
United Furniture Industries was subject to an involuntary Chapter 7
bankruptcy petition (Bankr. N.D. Miss. Case No. 22-13422) filed on
Dec. 30, 2022. The petition was signed by alleged creditors Wells
Fargo Bank, National Association, Security Associates of
Mississippi Alabama LLC, and V & B International, Inc. On Jan. 18,
2023, the court entered the order for relief, thereby, converting
the case to one under Chapter 11.
On Jan. 31, 2023, eight affiliates of United Furniture Industries
filed for Chapter 11 protection in the U.S. Bankruptcy Court for
the Northern District of Mississippi. The affiliates are LS
Logistics, LLC, Furniture Wood, Inc., UFI Transportation, LLC,
United Wood Products, Inc., Associated Bunk Bed Company, FW
Acquisition, LLC, UFI Royal Development, LLC, and UFI Exporter,
Inc. Their Chapter 11 cases are jointly administered under Case No.
22-13422.
Judge Selene D. Maddox oversees the cases.
Wells Fargo is represented by R. Spencer Clift, III, Esq., while
Security Associates is represented by Andrew C. Allen, Esq., at The
Law Offices of Andrew C. Allen.
Derek Henderson is the trustee appointed in the Debtors' Chapter 11
cases. The trustee hired McCraney, Montagnet, Quin, Noble, PLLC as
bankruptcy counsel; King & Spencer, PLLC, NC Eminent Domain Law
Firm and Mullin Hoard & Brown, LLP as special counsels; Harper
Rains Knight & Company as financial advisor; and B. Riley Real
Estate, LLC as real estate advisor.
VALCAL INC: Court OKs Cash Collateral Access Thru Sept 7
--------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida,
Orlando Division, authorized Valcal Inc. to use cash collateral on
an interim basis in accordance with the budget, through September
7, 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; and (c) additional amounts as may be expressly
approved in writing by the Creditor.
The Debtor's secured creditors, Bishek S. Sallapudi, Allegiant
Partners, Ascentium Capital LLC, Channel Partners, Financial
Pacific Leasing LLC, North Mills Credit Trust, Oakmont Capital,
River Capital Finance LLC, Credibly of Arizona LLC, and Corporation
Service Company, as representative, will have a perfected
post-petition lien against cash collateral to the same extent and
with the same validity and priority as the pre-petition 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 the loan and security
documents with Secured Creditors.
A continued preliminary hearing on the matter is set for September
7, 2023, at 10 a.m. at which time continued use of cash collateral
will be addressed.
A copy of the Court's order and the Debtor's budget is available at
https://urlcurt.com/u?l=AXhMGe from PacerMonitor.com.
The Debtor projects total expenses, on a monthly basis, of:
$205,656 for July 2023; and
$205,656 for August 2023.
About Valcal Inc.
Valcal Inc. manages and operates two delivery routes for FedEx
Ground. One of the routes is in Jacksonville, Florida; and the
other is near Ocoee, Florida.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 23-01675) on May 2,
2023. In the petition signed by Giovanni Martinez, president, the
Debtor disclosed $970,720 in assets and $2,055,075 in liabilities.
Judge Tiffany P. Geyer oversees the case.
Jeffrey S. Ainsworth, Esq., at Bransonlaw, PLLC, represents the
Debtor as legal counsel.
VEGASNAP LLC: Taps Larson & Zirzow as Bankruptcy Counsel
--------------------------------------------------------
Vegasnap, LLC seeks approval from the U.S. Bankruptcy Court for the
District of Nevada to employ Larson & Zirzow, LLC as its bankruptcy
counsel.
The Debtor requires legal counsel to:
(a) prepare reports and other legal papers in connection with
the administration of the Debtor's bankruptcy estate;
(b) take all actions in connection with a plan of reorganization
and related documents and such further actions as may be required
in connection with the administration of the estate;
(c) take all necessary actions to protect and preserve the
Debtor's estate, including the negotiation of disputes in which the
Debtor is involved, and the preparation of objections to claims
filed against the estate; and
(d) perform all other necessary legal services to prosecute the
Debtor's bankruptcy case.
The firm will be paid at these rates:
Matthew C. Zirzow, Attorney $600 per hour
Patricia Huelsman, Paralegal $275 per hour
In addition, the firm will seek reimbursement for expenses
incurred.
Prior to the petition date, the firm was paid the amount of $6,450.
The firm currently holds a balance of $23,550 in its trust
account.
Matthew Zirzow, Esq., an attorney at Larson &Zirzow, 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:
Matthew C. Zirzow, Esq.
Zachariah Larson, Esq.
Larson & Zirzow, LLC
850 E. Bonneville Ave.
Las Vegas, NE 89101
Telephone: (702) 382-1170
Facsimile: (702) 382-1169
Email: mzirzow@lzlawnv.com
zlarson@lzlawnv.com
About Vegasnap LLC
Vegasnap, LLC is a family-owned internet infrastructure and cloud
hosting provider headquartered in Las Vegas, Nevada, which also has
co-location datacenter facilities in Seattle, Dallas, and Miami.
The Debtor primarily provides business solutions for organizations,
including colocation services, cloud hosting services, data backup,
IP transit (Internet access) and data transport solutions, as well
as network solutions to provide protection from disaster recovery
for events like cyber-attacks, power outages, network and other
system failures.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Nev. Case No. 23-12371) on June 12,
2023. In the petition signed by Don J. Reed, chief operating
officer, the Debtor disclosed up to $500,000 in assets and up to $1
million in liabilities.
Judge Hilary L. Barnes oversees the case.
Larson and Zirzow, LLC represents the Debtor as legal counsel.
WCS PROPERTY GROUP: Files for Chapter 11 Bankruptcy Protection
--------------------------------------------------------------
WCS Property Group LLC filed for chapter 11 protection in the
Middle District of Florida.
The Debtor is a Florida limited liability company that was
incorporated on Jan. 10, 2020. The Debtor owns commercial real
property located in Sarasota which it leases out to various
tenants.
As of the Petition Date, the Debtor's principals, Wagner Santos and
Taylor Santos manage the Debtor from 11019 Pine Lilly Place,
Bradenton, Florida. The Debtor filed for protection under Chapter
11 due to the foreclosure action initiated by the Kiger Senior
Family Trust on the Debtor’s real estate holdings. The value of
the real estate is substantially higher than the debt owed to the
Kiger Senior Family Trust and generates sufficient monthly revenue
to debt service the loan.
According to court filings, WCS Property Group estimates between $1
million and $10 million in total debt owed to 1 to 49 creditors.
Secured creditor Kiger Senior Family Trust is owed $3,094,827 as of
the Petition Date.
The petition states that funds will be available to unsecured
creditors.
About WCS Property Group
WCS Property Group, LLC, which owns commercial real property
located in Sarasota which it leases out to various tenants, sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
M.D. Fla. Case No. 23-02820) on July 3, 2023. In the petition
signed by Taylor Santos, co-manager, the Debtor disclosed up to $10
million in both assets and liabilities. Buddy D. Ford, Esq., is
the Debtor's legal counsel.
WE KICK BRASS: Hires Milbery & Kesselman CPAs as Accountant
-----------------------------------------------------------
We Kick Brass, LLC seeks approval from the U.S. Bankruptcy Court
for the Southern District of Florida to employ Milbery & Kesselman,
CPAs LLC as accountant.
The firm will provide tax advice, reconcile the books and records
on a monthly basis, and prepare quarterly returns and 2022 tax
return.
The firm will be paid $1,000 per month.
Jack Milbery, a partner at Milbery & Kesselman, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Jack Milbery
Milbery & Kesselman, CPAs LLC
2800 W. State Road 84 Suite 105
Ft. Lauderdale, FL 33312
Tel: (954) 583-3223
About We Kick Brass, LLC
We Kick Brass, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 23-14789) on June 20,
2023. In the petition signed by Dawn Perez, manager member, the
Debtor disclosed up to $500,000 in both assets and liabilities.
Judge Erik P. Kimball oversees the case.
Brian K. McMahon, Esq., at Brian K. McMahon, PA, represents the
Debtor as legal counsel.
ZHANG MEDICAL: Taps Pardalis & Nohavicka as Legal Counsel
---------------------------------------------------------
Zhang Medical, P.C. seeks approval from the U.S. Bankruptcy Court
for the Southern District of New York to employ Pardalis &
Nohavicka, LLP as counsel.
The Debtor requires legal counsel to:
(a) perform all necessary services related to the Debtor's
reorganization and the bankruptcy estate;
(b) assist the Debtor in protecting and preserving the estate
assets during the pendency of its Chapter 11 case, including the
prosecution and defense of actions and claims arising from or
related to the estate and the Debtor's reorganization;
(c) prepare legal documents; and
(d) perform all other bankruptcy-related legal services.
The firm will be paid at these rates:
Partners $475 per hour
Associates $400 per hour
Paralegals $175 per hour
In addition, the firm will receive reimbursement for out-of-pocket
expenses incurred.
The retainer fee is $50,000.
Joseph Nohavicka, Esq., a partner at Pardalis & Nohavicka,
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:
Joseph D. Nohavicka, Esq.
Pardalis & Nohavicka, LLP
950 Third Avenue, 11th Floor
New York, NY 10022
Tel:(718) 777-0400
Email: jdn@pnlawyers.com
About Zhang Medical
New York-based Zhang Medical P.C. specializes in low and no-drug
infertility solutions that help women conceive with minimal
invasiveness. It conducts business under the name New Hope
Fertility Clinic.
Zhang Medical filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. S.D.N.Y. Case No. 23-10678) on April
30, 2023, with $1 million to $10 million in both assets and
liabilities. Eric Huebscher has been appointed as Subchapter V
trustee.
Judge Philip Bentley oversees the case.
Joseph D. Nohavicka, Esq., at Pardalis & Nohavicka, LLP is the
Debtor's counsel.
[^] Recent Small-Dollar & Individual Chapter 11 Filings
-------------------------------------------------------
In re East Bay Development, LLC
Bankr. N.D. Cal. Case No. 23-40794
Chapter 11 Petition filed July 3, 2023
See
https://www.pacermonitor.com/view/CO3PUWI/East_Bay_Development_LLC__canbke-23-40794__0001.0.pdf?mcid=tGE4TAMA
Filed Pro Se
In re Anthony's 31 Courtyard, LLC
Bankr. S.D. Cal. Case No. 23-01966
Chapter 11 Petition filed July 5, 2023
See
https://www.pacermonitor.com/view/BKTP3II/Anthonys_31_Courtyard_LLC__casbke-23-01966__0001.0.pdf?mcid=tGE4TAMA
represented by: Vincent Renda, Esq.
PINNACLE LEGAL P.C.
E-mail: vr@pinlegal.com
In re 2CM LLC
Bankr. M.D. Fla. Case No. 23-01569
Chapter 11 Petition filed July 5, 2023
See
https://www.pacermonitor.com/view/NTM4GMQ/2CM_LLC__flmbke-23-01569__0001.0.pdf?mcid=tGE4TAMA
represented by: Thomas Adam, Esq.
THOMAS ADAM
E-mail: tadam@adamlawgroup.com
In re 2624 E 63rd St LLC
Bankr. E.D.N.Y. Case No. 23-42370
Chapter 11 Petition filed July 5, 2023
See
https://www.pacermonitor.com/view/KYMQOQI/2624_E_63RD_ST_LLC__nyebke-23-42370__0001.0.pdf?mcid=tGE4TAMA
represented by: Narissa A. Joseph, Esq.
LAW OFFICE OF NARISSA A. JOSEPH
E-mail: njosephlaw@aol.com
In re Frank Rosemberg
Bankr. S.D.N.Y. Case No. 23-22514
Chapter 11 Petition filed July 5, 2023
In re Yardboys and Yardgirls, LLC
Bankr. E.D.N.C. Case No. 23-01858
Chapter 11 Petition filed July 5, 2023
See
https://www.pacermonitor.com/view/I5MF6LA/Yardboys_and_Yardgirls_LLC__ncebke-23-01858__0001.0.pdf?mcid=tGE4TAMA
represented by: Danny Bradford, Esq.
PAUL D. BRADFORD, PLLC
E-mail: dbradford@bradford-law.com
In re The Toccoa Outpost LLPC
Bankr. E.D. Tenn. Case No. 23-31164
Chapter 11 Petition filed July 5, 2023
See
https://www.pacermonitor.com/view/WFDQE3I/The_Toccoa_Outpost_LLPC__tnebke-23-31164__0001.0.pdf?mcid=tGE4TAMA
represented by: Lynn Tarpy, Esq.
TARPY, COX, FLEISHMAN & LEVEILLE, PLLC
E-mail: ltarpy@tcflattorneys.com
In re Kaden Blue Koffler
Bankr. E.D. Cal. Case No. 23-22228
Chapter 11 Petition filed July 6, 2023
In re Brent Merryman
Bankr. N.D. Fla. Case No. 23-40244
Chapter 11 Petition filed July 6, 2023
represented by: Byron Wright, Esq.
In re Lina B. Patel
Bankr. D.N.J. Case No. 23-15792
Chapter 11 Petition filed July 6, 2023
represented by: Jay Yacker, Esq.
In re Vincent Pond Homes MDV, LLC
Bankr. D.N.J. Case No. 23-15800
Chapter 11 Petition filed July 6, 2023
See
https://www.pacermonitor.com/view/O4QIKPQ/Vincent_Pond_Homes_MDV_LLC__njbke-23-15800__0001.0.pdf?mcid=tGE4TAMA
represented by: Bruce H. Levitt, Esq.
LEVITT & SLAFKES, P.C.
In re 1505 Lehigh LLC
Bankr. E.D. Pa. Case No. 23-11997
Chapter 11 Petition filed July 6, 2023
See
https://www.pacermonitor.com/view/WI7CQXI/1505_Lehigh_LLC__paebke-23-11997__0001.0.pdf?mcid=tGE4TAMA
represented by: John R. K. Solt, Esq.
JOHN R. K. SOLT, P.C.
E-mail: jsolt.soltlaw@rcn.com
In re Helene Semanderes
Bankr. W.D. Pa. Case No. 23-21472
Chapter 11 Petition filed July 6, 2023
represented by: Donald Calaiaro, Esq.
In re Michelle Michong O'Connor
Bankr. D. Kan. Case No. 23-20761
Chapter 11 Petition filed July 7, 2023
In re Horsin Around Holding Company, LLC
Bankr. D. Maine Case No. 23-10131
Chapter 11 Petition filed July 7, 2023
See
https://www.pacermonitor.com/view/FVTIWYQ/Horsin_Around_Holding_Company__mebke-23-10131__0001.0.pdf?mcid=tGE4TAMA
represented by: J. Scott Logan, Esq.
LAW OFFICE OF J. SCOTT LOGAN, LLC
E-mail: scott@southernmainebankruptcy.com
In re Dailey Law Firm PC
Bankr. E.D. Mich. Case No. 23-45970
Chapter 11 Petition filed July 7, 2023
See
https://www.pacermonitor.com/view/FZFKBOY/Dailey_Law_Firm_PC__miebke-23-45970__0001.0.pdf?mcid=tGE4TAMA
represented by: Scott M. Kwiatkowski, Esq.
GOLDSTEIN BERSHAD & FRIED PC
In re Zenith in East Rutherford LLC
Bankr. D.N.J. Case No. 23-15830
Chapter 11 Petition filed July 7, 2023
See
https://www.pacermonitor.com/view/LSKS7PA/Zenith_in_East_Rutherford_LLC__njbke-23-15830__0001.0.pdf?mcid=tGE4TAMA
represented by: Melinda D. Middlebrooks, Esq.
MIDDLEBROOKS SHAPIRO, P.C.
E-mail:
middlebrooks@middlebrooksshapiro.com
In re Gold Equity LLC
Bankr. E.D.N.Y. Case No. 23-42406
Chapter 11 Petition filed July 7, 2023
See
https://www.pacermonitor.com/view/M7AUIPY/Gold_Equity_LLC__nyebke-23-42406__0001.0.pdf?mcid=tGE4TAMA
represented by: Charles Wertman, Esq.
THE LAW OFFICES OF CHARLES WERTMAN
E-mail: charles@cwertmanlaw.com
In re Bronze Equity LLC
Bankr. E.D.N.Y. Case No. 23-42407
Chapter 11 Petition filed July 7, 2023
See
https://www.pacermonitor.com/view/NGDOBWY/Bronze_Equity_LLC__nyebke-23-42407__0001.0.pdf?mcid=tGE4TAMA
represented by: Charles Wertman, Esq.
THE LAW OFFICES OF CHARLES WERTMAN
E-mail: charles@cwertmanlaw.com
In re Direct Marketing Group, LLC
Bankr. E.D.N.C. Case No. 23-01891
Chapter 11 Petition filed July 7, 2023
See
https://www.pacermonitor.com/view/XA4GV4Q/Direct_Marketing_Group_LLC__ncebke-23-01891__0001.0.pdf?mcid=tGE4TAMA
represented by: Danny Bradford, Esq.
PAUL D. BRADFORD, PLLC
E-mail: dbradford@bradford-law.com
In re Picante Grille LLC
Bankr. W.D. Penn. Case No. 23-21480
Chapter 11 Petition filed July 7, 2023
See
https://www.pacermonitor.com/view/ZMZV4JI/Picante_Grille_LLC__pawbke-23-21480__0001.0.pdf?mcid=tGE4TAMA
represented by: Donald R. Calaiaro, Esq.
CALAIARO VALENCIK
E-mail: dcalaiaro@c-vlaw.com
In re Dino Michael Arucan Martin
Bankr. N.D. Cal. Case No. 23-30446
Chapter 11 Petition filed July 8, 2023
represented by: Arasto Farsad, Esq.
In re Evelyn Moreno Balistreri
Bankr. N.D. Cal. Case No. 23-30447
Chapter 11 Petition filed July 8, 2023
represented by: Arasto Farsad, Esq.
In re Mangual's General Services Inc.
Bankr. S.D. Fla. Case No. 23-15356
Chapter 11 Petition filed July 9, 2023
See
https://www.pacermonitor.com/view/QL5OLWA/Manguals_General_Services_Inc__flsbke-23-15356__0001.0.pdf?mcid=tGE4TAMA
represented by: Peter Spindel, Esq.
PETER SPINDEL, P.A.
E-mail: peterspindel@gmail.com
In re 2125 Flatbush Ave, Inc.
Bankr. E.D.N.Y. Case No. 23-42411
Chapter 11 Petition filed July 9, 2023
See
https://www.pacermonitor.com/view/DZ2YZ2I/2125_Flatbush_Ave_Inc__nyebke-23-42411__0001.0.pdf?mcid=tGE4TAMA
represented by: Rachel S. Blumenfeld, Esq.
LAW OFFICE OF RACHEL S. BLUMENFELD PLLC
E-mail: rachel@blumenfeldbankruptcy.com
In re 2424 Davidson LLC
Bankr. S.D.N.Y. Case No. 23-11076
Chapter 11 Petition filed July 10, 2023
See
https://www.pacermonitor.com/view/ZQIEHAQ/2424_Davidson_LLC__nysbke-23-11076__0001.0.pdf?mcid=tGE4TAMA
represented by: Karamvir Dahiya, Esq.
DAHIYA LAW OFFICES, LLC
E-mail: karam@bankruptcypundit.com
In re Tabula Rasa, Co.
Bankr. E.D.N.C. Case No. 23-01911
Chapter 11 Petition filed July 10, 2023
See
https://www.pacermonitor.com/view/77HKL7Y/Tabula_Rasa_Co__ncebke-23-01911__0001.0.pdf?mcid=tGE4TAMA
represented by: Danny Bradford, Esq.
PAUL D. BRADFORD, PLLC
E-mail: dbradford@bradford-law.com
In re Cam-Car College Collectibles L.L.C.
Bankr. E.D.N.C. Case No. 23-01918
Chapter 11 Petition filed July 10, 2023
See
https://www.pacermonitor.com/view/45QOICI/Cam-Car_College_Collectibles_LLC__ncebke-23-01918__0001.0.pdf?mcid=tGE4TAMA
represented by: Richard P. Cook, Esq.
RICHARD P. COOK, PLLC
E-mail: CapeFearDebtRelief@gmail.com
In re Specialty Dental Holdings, LLC
Bankr. W.D. Tex. Case No. 23-10498
Chapter 11 Petition filed July 10, 2023
See
https://www.pacermonitor.com/view/WMZGW5A/Specialty_Dental_Holdings_LLC__txwbke-23-10498__0001.0.pdf?mcid=tGE4TAMA
represented by: Stephen W. Sather, Esq.
BARRON & NEWBURGER, P.C.
E-mail: ssather@bn-lawyers.com
In re Grow Pediatrics Management, LLC
Bankr. W.D. Tex. Case No. 23-10499
Chapter 11 Petition filed July 10, 2023
See
https://www.pacermonitor.com/view/WIFREHQ/Grow_Pediatrics_Management_LLC__txwbke-23-10499__0001.0.pdf?mcid=tGE4TAMA
represented by: Stephen W. Sather, Esq.
BARRON & NEWBURGER, P.C.
E-mail: ssather@bn-lawyers.com
In re Specialty Orthodontics, LLC
Bankr. W.D. Tex. Case No. 23-10500
Chapter 11 Petition filed July 10, 2023
See
https://www.pacermonitor.com/view/7LPTR2Y/Specialty_Orthodontics_LLC__txwbke-23-10500__0001.0.pdf?mcid=tGE4TAMA
represented by: Stephen W Sather, Esq.
BARRON & NEWBURGER, P.C.
E-mail: ssather@bn-lawyers.com
In re Specialty Dental Management, LLC
Bankr. W.D. Tex. Case No. 23-10501
Chapter 11 Petition filed July 10, 2023
See
https://www.pacermonitor.com/view/BGXGFAA/Specialty_Dental_Management_LLC__txwbke-23-10501__0001.0.pdf?mcid=tGE4TAMA
represented by: Stephen W. Sather, Esq.
BARRON & NEWBURGER, P.C.
E-mail: ssather@bn-lawyers.com
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.
Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
The Sunday TCR delivers securitization rating news from the week
then-ending.
TCR subscribers have free access to our on-line news archive.
Point your Web browser to http://TCRresources.bankrupt.com/and use
the e-mail address to which your TCR is delivered to login.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Philadelphia, Pa., USA.
Randy Antoni, Jhonas Dampog, Marites Claro, Joy Agravante,
Rousel Elaine Tumanda, Joel Anthony G. Lopez, Psyche A. Castillon,
Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and
Peter A. Chapman, Editors.
Copyright 2023. All rights reserved. ISSN: 1520-9474.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers. Information contained
herein is obtained from sources believed to be reliable, but is
not guaranteed.
The TCR subscription rate is $975 for 6 months delivered via
e-mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance thereof
are $25 each. For subscription information, contact Peter A.
Chapman at 215-945-7000.
*** End of Transmission ***