/raid1/www/Hosts/bankrupt/TCR_Public/230821.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Monday, August 21, 2023, Vol. 27, No. 232
Headlines
560 SEVENTH AVENUE: Has Deal on Cash Collateral Access
58 DOBBIN: Case Summary & One Unsecured Creditor
A P REAL ESTATE: Case Summary & Eight Unsecured Creditors
AKRON REBAR: Unsecureds to Get Nothing in Liquidating Plan
ALASKA LOGISTICS: Court OKs Cash Collateral Access Thru Oct 12
ALECTO HEALTHCARE: Snyder Brothers Supports Committee Appointment
ALIERA COMPANIES: Amends Administrative Claims Details
AMBA MANAGEMENT: Taps Penachio Malara as Legal Counsel
AMERITRANS EXPRESS: Court OKs Cash Collateral Access Thru Oct 1
ANASTASIA PARENT: Lord Abbett CB Fund Marks $12MM Loan at 22% Off
ASURION LLC: Lord Abbett CB Fund Marks $24MM Loan at 18% Off
ATH SPORTS: Disposable Income to Fund Plan Payments
ATLANTIC RADIO: Wins Cash Collateral Access on Final Basis
AZAR BOUJARAN-GHOMI: Taps Law Offices of Alla Kachan as Counsel
BARE ARMS: Unsecureds to Recover 33% to 100% in 5 Years
BEN'S GARDEN: Gets OK to Hire Wild Maney & Resnick as Accountant
BEP ULTERRA: Moody's Withdraws 'B2' CFR Following Debt Repayment
BETTER SOUL: Case Summary & Two Unsecured Creditors
BHD SLT: Continued Operations to Fund Plan Payments
BIGHORN RESTAURANTS: Court OKs Deal Cash Collateral Access
BISON LAND: Unsecureds to Get Share of Income for 3 Years
BROOKWOOD VILLAGE: Property Sale Proceeds to Fund Plan
BUCKEYE LODGING: Case Summary & 20 Largest Unsecured Creditors
BULGARIAN BAR: Seeks Nov. 8 Extension to File Plan
BURKE BRANDS: Court OKs Cash Collateral Access Thru Sept 29
CASCADE PARENT: S&P Alters Outlook to Negative, Affirms 'B-' ICR
CATHOLIC BISHOP: Moody's Affirms 'Ba1' Rating on Revenue Bond
CBS TRUCKING: Court OKs Cash Collateral Access Thru Sept 30
CHG HEALTHCARE: Moody's Lowers Rating on 1st Lien Loans to B2
CHINA EVERGRANDE: Chapter 15 Case Summary
CLEVELAND-CLIFFS INC: S&P Places 'BB-' ICR on Watch Developing
CRESTWOOD EQUITY: Moody's Puts 'Ba2' CFR Under Review for Upgrade
D&D BAKER: Unsecureds Will Get 15% of Claims over 5 Years
DEVILLE CORP: Wins Interim Cash Collateral Access
DIOCESE OF ALBANY: Committee Taps Dundon as Financial Advisor
DYNASTY ACQUISITION: Moody's Rates New Senior Secured Loans 'B3'
EAGLE MECHANICAL: Seeks to Extend Plan Exclusivity to November 27
EARTHSTONE ENERGY: S&P Raises ICR to 'B+', Off Watch Positive
ENC PARENT: S&P Affirms 'B-' Issuer Credit Rating, Outlook Neg.
ENCINO TOWERS: Seeks Cash Collateral Access
ENTEC SERVICES: Creditors to Get Proceeds From Liquidation
ENVISION HEALTHCARE: $300M Bank Debt Trades at 16% Above Par
EPICOR SOFTWARE: Moody's Lowers Rating on First Lien Loans to B2
EPICOR SOFTWARE: Moody's Raises CFR to B2 & First Lien Debt to B1
EQUINOX HOLDINGS: Lord Abbett CB Fund Marks $7MM Loan at 28% Off
EVANGELICAL RETIREMENT: Wins Cash Access on Final Basis
EXIGENT LANDSCAPING: May Use Cash Collateral Access
FEILITECH US: Gets OK to Hire James W. Smith III as Accountant
FLUID CONSTRUCTION: Case Summary & 20 Largest Unsecured Creditors
FRONTERA GENERATION: Lord Abbett CB Fund Says $3MM Loan at 55% Off
FRONTERA GENERATION: Lord Abbett HY Says $1.2MM Loan at 55% Off
FT MEDICAL: Case Summary & 20 Largest Unsecured Creditors
FTI CONSULTING: Moody's Affirms Ba1 CFR & Rates Secured Loans Ba1
FUSION GALAXY: Gets OK to Hire Guidant Law as Bankruptcy Counsel
G&S FAMILY: Seeks to Hire Caldwell & Riffee as Legal Counsel
G&S FAMILY: Seeks to Hire Larry Cottle as Manager
G&S FAMILY: Seeks to Hire Lorie Meadows as Accountant
GAFC SERVICES: Case Summary & Six Unsecured Creditors
GMS SUNSET: Case Summary & One Unsecured Creditor
GOLDEN KEY: Taps Frost & Associates as Special Tax Counsel
GREEN DISTRICT: Case Summary & 20 Largest Unsecured Creditors
GREEN HYGIENICS: Taps Bisom Law Group as Bankruptcy Counsel
GREENBERG GOURMET: Gets Interim OK on Cash Collateral Access
GSCG TRUST 2019-600C: S&P Lowers Rating on Class X Certs to 'B
I.C. ELECTRIC: Files Emergency Bid to Use Cash Collateral
INMET MINING: Exclusivity Period Extended to December 3
J & D RESTAURANT: Has Deal on Cash Collateral Access
JDI DATA: Court OKs Cash Collateral Access Thru Nov 18
KAF RECYCLING: Unsecureds Will Get 13.6% of Claims in Plan
KEVIN CONCANNON: Court OKs Interim Cash Collateral Access
KEYS CONTRACTING: Case Summary & 20 Largest Unsecured Creditors
LA FAMILIA: Wins Cash Collateral Access Thru Oct 22
LANCASTER HOSPITALITY: Case Summary & 20 Top Unsecured Creditors
LINDELL LLC: Files Emergency Bid to Use Cash Collateral
LONE WOLF: Files Emergency Bid to Use Cash Collateral
LUXE SPACES: Unsecureds Will Get 65.74% of Claims in Plan
MAFIC USA: Asset Auction Scheduled for August 22
MAXIM CRANE: Moody's Hikes CFR to B2, Rates New $500MM Notes Caa1
MAYBERRY FUNERAL: Seeks 90-Day Extension to File Plan
MIMEDX GRP: En Banc Rehearing Petition Remains Pending in Court
MOUNTAINEER BRAND: Case Summary & 14 Unsecured Creditors
NEO ACCOUNTING: Court OKs Cash Collateral Access Thru Sept 21
NEW ERA CAP: Moody's Withdraws 'B1' CFR Following Debt Repayment
NEW YORK LAW: Moody's Affirms 'Ba1' Issuer Rating, Outlook Stable
NOVATION COMPANIES: Unsecureds Will Get 100% of Claims in Plan
OBSIDIAN ENERGY: DBRS Confirms B(high) Issuer Rating
OMERS RELIEF: Moody's Alters Outlook on 'B3' CFR to Negative
OUTPUT SERVICES: S&P Withdraws 'CCC+' Issuer Credit Rating
PANTHER GUARANTOR: S&P Places 'B-' ICR On CreditWatch Developing
PARKCHESTER ORAL: Court OKs Interim Cash Collateral Access
PBF HOLDING: Moody's Rates New $500MM Senior Unsecured Notes 'Ba3'
PHOTIZO LLC: Unsecured Creditors to Split $7,500 in 3 Years
PRETIUM PKG: Lord Abbett CB Fund Marks $13MM Loan at 63% Off
QUALITY HEATING: Seeks to Extend Plan Exclusivity to October 23
R.B. DWYER CO: Taps Kronick Kalada Berdy & Co. as Accountant
RASPBERRY CREEK: Case Summary & 20 Largest Unsecured Creditors
RAW INDULGENCE: Cash Collateral Access Thru Sept 26 OK'd
ROBBINS SERVICE: Unsecureds Will Get 48% of Claims in Plan
ROJESIE INC: Gets OK to Hire Lube & Soto as Substitute Counsel
S&G HOSPITALITY: Case Summary & One Unsecured Creditor
SABRE GLOBAL: Lord Abbett CB Fund Marks $1.2MM Loan at 27% Off
SABRE GLOBAL: Lord Abbett CB Fund Marks $4MM Loan at 26% Off
SABRE GLOBAL: Lord Abbett CB Fund Marks $860,000 Loan at 27% Off
SIO2 MEDICAL: Seeks to Extend Plan Exclusivity to October 25
SOUTHEAST ASSOCIATION: Taps Emerge180 as Tax Credit Consultant
STAR FARMS: Taps Guy Humphries as Bankruptcy Counsel
STONE CREEK: Case Summary & Four Unsecured Creditors
STRATIS CORP: Case Summary & Nine Unsecured Creditors
SUNBURST HOTELS: Case Summary & 20 Largest Unsecured Creditors
SURGALIGN HOLDINGS: Committee Taps Pachulski as Legal Counsel
SURGALIGN HOLDINGS: Committee Taps Province as Financial Advisor
TECHNICAL ORDNANCE: Unsecureds to be Paid in Full over 5 Years
TRANSIT PHYSICAL: Wins Cash Collateral Access Thru Dec 31
UNITED ENGINEERS: Voluntary Chapter 11 Case Summary
UNITED PF: Lord Abbett CB Fund Marks $17MM Loan at 25% Off
UNITED PF: Lord Abbett CB Fund Marks $4MM Loan at 27% Off
UNITED STATES STEEL: S&P Places 'BB-' ICR on Watch Developing
VECTOR ESCAPES: Seeks Cash Collateral Access
WELLPATH HOLDINGS: Lord Abbett CB Fund Marks $23MM Loan at 31% Off
YS GARMENTS: Moody's Lowers CFR & Senior Secured Loans to Caa1
ZEBRA TECHNOLOGIES: Moody's Affirms 'Ba1' CFR, Outlook Stable
[^] BOND PRICING: For the Week from August 14 to 18, 2023
*********
560 SEVENTH AVENUE: Has Deal on Cash Collateral Access
------------------------------------------------------
560 Seventh Avenue Owner Primary LLC asks the U.S. Bankruptcy Court
for the Southern District of New York for entry of an order
authorizing the use of cash collateral and authorizing OWS CRE
Funding I, LLC, the prepetition senior mortgage lender, to directly
or indirectly administer and maintain the Existing Accounts.
The assets of the Margaritaville Resort Times Square Hotel are
subject to a first mortgage lien held by the Prepetition Senior
Mortgage Lender to secure a loan issued in 2021 by the Original
Lender in the total sum of $167 million, since reduced to a current
balance of $156.652 million, plus accrued and unpaid interest
thereon and fees, expenses, charges, indemnities, and other costs
and obligations incurred in connection therewith. As more fully set
forth in the Prepetition Loan Documents, the Prepetition Senior
Mortgage Lender holds first priority liens on and security
interests in the "Collateral" under and as defined in the
Prepetition Mortgage Loan Agreement, including but not limited to,
rents, account receivables, utility charges, escalations, service
fees or charges, hotel transactions, license fees, parking fees,
and rent concessions or credits, which constitute cash collateral
within the meaning of the Bankruptcy Code. As more fully set forth
in the Prepetition Loan Documents, the Prepetition Senior Mortgage
Lender holds first priority liens on and security interests in the
"Collateral" under and as defined in the Prepetition Mortgage Loan
Agreement.
The Debtor and the Prepetition Senior Mortgage Lender have reached
agreement on the terms of the Interim Cash Collateral Order, which
permits use of cash collateral to pay budgeted expenses and grants
the Prepetition Senior Mortgage Lender several forms of adequate
protection, including (i) the continued maintenance and
administration of the Existing Accounts; (ii) a replacement lien on
(a) all of the Prepetition Collateral, (b) the DIP Account, and (c)
the Existing Accounts; (iii) subject to the terms of the Interim
Cash Collateral Order, payment of all reasonable and documented
outstanding fees and out-of- pocket expenses incurred by the
Prepetition Senior Mortgage Lender (iv) a superpriority
administrative expense claim subject to certain carve outs; (v)
retention of the Prepetition Senior Mortgage Lender's first
mortgage lien; and (vi) payment of monthly adequate protection in
the form of the Hotel's excess cash flow.
The use of cash collateral will terminate upon the events of
default including:
(i) thefailure of the Debtor to make any payment under the
Interim Cash Collateral Order to the Prepetition Senior Mortgage
Lender within two business days after such payment becomes due;
(ii)(A) the Interim Cash Collateral Order or the Final Order
(if entered) ceases, for any reason (other than by reason of the
express written agreement by the Prepetition Senior Mortgage
Lender), to be in full force and effect in any material respect, or
(B) entry by the Court or any other court of an order vacating or
modifying the Interim Cash Collateral Order or any final Order
authorizing the use of Cash Collateral in these cases;
(iii) the Debtor supports in writing an action commenced by
any person against the Prepetition Senior Mortgage Lender with
respect to the Prepetition Loan Documents, including, without
limitation, any action to avoid or subordinate any obligations
under the Prepetition Mortgage Loan Agreement;
(iv) the Court will have entered an order granting relief
from the automatic stay to the holder or holders of any security
interest to permit foreclosure (or the granting of a deed in lieu
of foreclosure or the like) on any of the Debtor's assets which
have an aggregate value in excess of $100,000; and
(v) the filing of any pleading by the Debtor in support of
any other person or entity's opposition to any motion filed in the
Court by the Prepetition Senior Mortgage Lender seeking
confirmation of the amount of its claims or the validity or
enforceability of the Prepetition Liens, except with regard to good
faith disputes over the payment of fees and expenses.
A copy of the motion is available at https://urlcurt.com/u?l=he0sK5
from PacerMonitor.com.
About 560 Seventh Avenue Owner Primary
560 Seventh Avenue Owner Primary LLC wns and operates the
Margaritaville Resort Times Square Hotel located at 560 Seventh
Avenue, New York, NY.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. N.Y. Case No. 23-11289) on August 12,
2023. In the petition signed by Stehian Pomerantz, president, the
Debtor disclosed up to $500 million in both assets and
liabilities.
Kevin J. Nash, Esq., at GOLDBERG WEPRIN FINKEL GOLDSTEIN LLP,
represents the Debtor as legal counsel.
58 DOBBIN: Case Summary & One Unsecured Creditor
------------------------------------------------
Debtor: 58 Dobbin LLC
58 Dobbin Street
Brooklyn, NY 11222
Business Description: The Debtor is the owner of real property
located at 58 Dobbin Street, Brooklyn, New
York valued at $6.8 million.
Chapter 11 Petition Date: August 16, 2023
Court: United States Bankruptcy Court
Eastern District of New York
Case No.: 23-42938
Judge: Hon. Elizabeth S. Stong
Debtor's Counsel: Vivian Sobers, Esq.
SOBERS LAW PLLC
11 Broadway Suite 615
New York, NY 10004
Tel: (917) 225-4501
Email: vsobers@soberslaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Henrick Weis as principal.
The Debtor listed NYC Water Board as its sole unsecured creditor
holding a claim of $42,289.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/DFDETYI/58_Dobbin_LLC__nyebke-23-42938__0001.0.pdf?mcid=tGE4TAMA
A P REAL ESTATE: Case Summary & Eight Unsecured Creditors
---------------------------------------------------------
Debtor: A P Real Estate Georgia, LLC
6095 Pine Mountain Rd
Kennesaw, GA 30152
Business Description: The Debtor is the owner of real property
located at 6095 Pine Mountain Rd, Kennesaw,
GA valued at $556,530.
Chapter 11 Petition Date: August 17, 2023
Court: United States Bankruptcy Court
Northern District of Georgia
Case No.: 23-57890
Judge: Hon. Jeffery W. Cavender
Debtor's Counsel: Ian Falcone, Esq.
THE FALCONE LAW FIRM, PC
363 Lawrence St NE
Marietta, GA 30060-2056
Tel: (770) 426-9359
Email: imf@falconefirm.com
Total Assets: $557,031
Total Liabilities: $1,920,427
The petition was signed by Harshad Patel as manager.
A full-text copy of the petition containing, among other items, a
list of the Debtor's eight unsecured creditors is available for
free at PacerMonitor.com at:
https://www.pacermonitor.com/view/W67EMHA/A_P_Real_Estate_Georgia_LLC__ganbke-23-57890__0001.0.pdf?mcid=tGE4TAMA
AKRON REBAR: Unsecureds to Get Nothing in Liquidating Plan
----------------------------------------------------------
Sentinel Intelligence Group, LLC, a Debtor Affiliate of Akron Rebar
Company, filed with the U.S. Bankruptcy Court for the Northern
District of Ohio a Disclosure Statement to accompany Plan of
Liquidation dated August 13, 2023.
The Debtor is a limited liability company organized pursuant to the
laws of the State of Ohio and was the owner of real property
located at 809 W. Waterloo Road, Akron, Ohio 44314.
In 2019, Sentinel purchased real property located at 809 W.
Waterloo Road, Akron, Ohio 44314 through mortgage financing
obtained from KeyBank National Association and then leased the
property to Akron Rebar Company. Sentinel's only source of income
was the receipt of rental income from Akron Rebar.
Less than one year after purchasing the property, the COVID 19
pandemic was catastrophic for Sentinel's sole tenant, Akron Rebar.
After realizing that Akron Rebar was no longer viable, management
shifted their attention to the liquidation of the business in an
attempt to mitigate the damage. Ultimately, management elected to
file Chapter 11 bankruptcy petitions for both Akron Rebar and
Sentinel.
Akron Rebar and Sentinel, as the Debtors in the jointly
administered bankruptcy cases, filed a Combined Motion for Entry of
Orders (i) Establishing Bidding and Sale Procedures, (ii) Approving
Certain Bidding Protections, (iii) Approving the Sale of Assets
Free and Clear of All Liens, Claims, Encumbrances, and Interests,
(iv) Authorizing the Assumption and Assignment of Certain Executory
Contracts and Unexpired Leases and Approving the Manner of Notice
of the Sale and Assumption and Assignment of Executory Contracts
and Unexpired Leases, (v) Scheduling an Auction and Sale Hearing
and (vi) Granting Related Relief on May 8, 2023.
A sale hearing to approve the sale of the Purchased Assets to
Commercial Metals Company was held on July 21, 2023. Following the
hearing, the Court entered an Order (a) Approving the Stalking
Horse Asset Purchase Agreement and Authorizing the Sale of the
Purchased Assets, (b) Authorizing the Sale of the Purchased Assets
Free and Clear of All Liens, Claims, Encumbrances and Interests,
and (c) Granting Related Relief (the "Sale Order").
The closing of this transaction occurred on July 31, 2023 and
Sentinel received sale proceeds in the amount of $509,312.11 This
Plan of Liquidation under chapter 11 of the Bankruptcy Code
proposes to pay creditors of the Debtor from the sale proceeds.
Class 1 consists of Secured Claims. Class 1 is impaired by the
Plan. The Small Business Administration ("SBA") is owed
$519,788.42. The SBA will be paid from available funds on the
Effective Date in the projected amount of $476,812.11.
Class 2 consists of General Unsecured Claims. Class 2 is impaired
by the Plan. Because the Allowed Claim of the SBA will not be paid
in full, there will be no distribution to any Allowed Claims in
this Class under the Plan.
Class 3 consists of Equity Interest Holders. Class 3 is unimpaired
by the Plan. The holder of Interests shall continue their equity
ownership under this Plan; provided that such holders of Interest
shall not receive any distributions from the Debtor as set forth in
this Plan. Following distribution to creditors, the Debtor will
have no assets and the legal entity will be dissolved.
The Debtor's financial projections demonstrate that the Debtor will
have total projected disposable income in the amount of $509,312.11
following the sale of the Debtor's assets pursuant to the prior
Orders of this Court.
Except as otherwise provided herein or as may be ordered by the
Bankruptcy Court, the Distribution Agent shall make distributions
following the Effective Date from the $509,312.11 of available
funds as provided for under the Plan.
A full-text copy of the Disclosure Statement dated August 13, 2023
is available at https://urlcurt.com/u?l=he3upD from
PacerMonitor.com at no charge.
Counsel for the Debtor:
Peter G. Tsarnas, Esq.
GERTZ & ROSEN, LTD.
159 S. Main Street, Suite 400
Akron, OH 44308
Telephone: (330) 255-0735
Facsimile: (330) 932-2367
E-mail: ptsarnas@gertzrosen.com
About Akron Rebar Co.
Akron Rebar Co. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ohio Case No. 23-50624) on May 4,
2023. In the petition signed by Michael B. Humphrey, Sr., vice
president and secretary, the Debtor disclosed up to $1 million in
assets and up to $10 million in liabilities.
Judge Alan M. Koschik oversees the case.
Peter G. Tsarnas, Esq., at Gertz & Rosen, Ltd., is the Debtor's
legal counsel.
ALASKA LOGISTICS: Court OKs Cash Collateral Access Thru Oct 12
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Western District of Washington
authorized Alaska Logistics, LLC to continue using cash collateral
on a final basis in accordance with the budget, with a 15%
variance, through October 12, 2023.
As adequate protection and for the Debtor's use of the cash
collateral, Banner Bank, as the senior secured creditor, will be
granted replacement liens in the Debtor's post-petition cash,
accounts receivable and inventory, and the proceeds of each of the
foregoing, to the same extent and priority as any duly perfected
and unavoidable liens in cash collateral held by Banner Bank as of
the Petition Date. The replacement lien does not include, without
limitation, a lien on avoidance action proceeds.
As further adequate protection, the Debtor will make monthly
adequate protection payments to Banner Bank in the amount of
$18,200 per month.
A copy of the court's order is available at
https://urlcurt.com/u?l=zJirFN from PacerMonitor.com.
About Alaska Logistics LLC
Alaska Logistics LLC transports materials and equipment of all
sizes, shapes and types from Seattle to Western Alaska.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Wash. Case No. 23-11250) on July 7,
2023.
In the petition signed by Allyn Long, general manager/president,
the Debtor disclosed up to $50 million in both assets and
liabilities.
Judge Christopher M. Alston oversees the case.
Faye C. Rasch, Esq., at Wenokur Riordan PLLC, represents the Debtor
as legal counsel.
ALECTO HEALTHCARE: Snyder Brothers Supports Committee Appointment
-----------------------------------------------------------------
Snyder Brothers, Inc., a creditor of Alecto Healthcare Services,
LLC, expressed its support for the appointment of a committee that
will represent unsecured creditors in the company's Chapter 11
case.
A group of creditors represented by Sullivan Hazeltine Allinson,
LLC has sought the appointment of a committee following information
of Alecto's "regular and ongoing transfers" to Sherman/Grayson
Hospital, LLC and other insolvent subsidiaries. The committee, the
group argued, could ensure that no further post-petition transfers
are made.
Richard Riley, Esq., Snyder Brothers' attorney, said the
appointment of a committee is necessary to investigate the business
and affairs of Alecto, including potential claims against its
subsidiaries, affiliates and owners.
"Many of the subsidiaries, [Alecto] and the debtor affiliates have
common ownership and management, and it is believed and therefore
alleged that [Alecto] is also operated by and for the benefit of
its owners and affiliates," Mr. Riley said in court papers.
Snyder Brothers' claim against Alecto is based upon, inter alia, a
consent judgment in favor of Snyder Brothers against subsidiaries
and affiliates of the company and allegations of fraudulent
conveyances and in equity for piercing the corporate veil and
single enterprise theory. The claim includes allegations that
subsidiary companies of Alecto were operated as a single enterprise
with the company and for the benefit of the company.
Snyder Brothers can be reached at:
Richard W. Riley, Esq.
Whiteford, Taylor & Preston, LLC
600 North King Street, Suite 300
Wilmington, DE 19801
Telephone: (302) 353-4144
Email: rriley@whitefordlaw.com
- and -
Ronald W. Crouch, Esq.
Whiteford, Taylor & Preston, LLC
11 Stanwix Street, Suite 1400
Pittsburgh, PA 15222
Telephone: (412) 618-5600
Email: rcrouch@whitefordlaw.com
About Alecto Healthcare Services
Alecto Healthcare Services, LLC is a provider of healthcare
infrastructure services based in Glendale Calif.
Alecto Healthcare Services filed Chapter 11 petition (Bankr. D.
Del. Case No. 23-10787) on June 16, 2023, with $1 million to $10
million in assets and $50 million to $100 million in liabilities.
Jami Nimeroff, Esq., at Brown McGarry Nimeroff, LLC has been
appointed as Subchapter V trustee.
Judge Kate Stickles oversees the case.
Leonard M. Shulman, Esq., at Shulman Bastian Friedman & Bui, LLP
and The Rosner Law Group, LLC serve as the Debtor's bankruptcy
counsel and Delaware counsel, respectively.
ALIERA COMPANIES: Amends Administrative Claims Details
------------------------------------------------------
The Aliera Companies Inc. d/b/a Aliera Healthcare, Inc., et al. and
The Official Committee of Unsecured Creditors submitted a Modified
Combined First Amended Disclosure Statement and Plan of Liquidation
dated August 14, 2023.
The Plan constitutes a liquidating chapter 11 plan for the Debtors.
The Plan provides for the Debtors' assets already liquidated or to
be liquidated over time and for the proceeds to be distributed to
Holders of Allowed Claims in accordance with the terms of the
Plan.
Except as otherwise provided by order of the Bankruptcy Court,
Distributions will occur on the Effective Date or as soon
thereafter as is practicable and at various intervals thereafter.
The Plan provides for the establishment of the Trust which shall,
as provided for in the Plan and the Trust Agreement, be the means
to effect such liquidation and Distributions.
Requests for payment of Administrative Claims (other than Fee
Claims and claims for tax liabilities arising after the Petition
Date) must be filed and served on the Debtors no later than the
first Business Day that is 30 days after service of notice of the
Effective Date (the "Administrative Claims Bar Date"), which notice
shall set forth the Administrative Claims Bar Date. Holders of
Administrative Claims (other than Fee Claims) that do not file
requests for the allowance and payment thereof on or before the
Administrative Claims Bar Date shall forever be barred from
asserting such Administrative Claims against the Debtors, their
Estates or the Trust, absent Bankruptcy Court order to the
contrary. Objections to each such Claims may be filed in accordance
with the Bankruptcy Rules. The Court shall determine whether all
such Administrative Claims should be Allowed Claims. Administrative
Claims for tax liabilities shall be paid by the Debtors in the
ordinary course of business.
All U.S. Trustee Fees due and payable prior to the Effective Date
shall be paid by the Debtors on the Effective Date. After the
Effective Date, all U.S. Trustee Fees shall be paid when due and
payable by the Liquidating Trustee on behalf of the Consolidated
Estate. The Debtors shall file all monthly operating reports due
prior to the Effective Date when they become due, using UST Form
11-MOR. After the Effective Date, the Liquidating Trustee shall
file with the Bankruptcy Court on behalf of the Consolidated Estate
separate UST Form 11-PCR reports when they become due. The
Liquidating Trust shall remain obligated to pay U.S. Trustee Fees
to the Office of the U.S. Trustee on behalf of the Consolidated
Estate until the Chapter 11 Cases are closed, dismissed or
converted to a case under Chapter 7 of the Bankruptcy Code. The
U.S. Trustee shall not be required to file any Administrative Claim
in the case, and shall not be treated as providing any release
under the Plan.
The Modified First Amended Disclosure Statement does not alter the
proposed treatment for unsecured creditors and the equity holder:
* Class 3 Unsecured Trade Claims total $10,000,000 to
$15,000,000 and will receive a pro rata share of UTC Cash available
after payment of or reserve for Allowed Claims on the later of: (a)
the date or dates determined by the Liquidating Trustee, to the
extent there is Cash available for distribution in the judgment of
the Liquidating Trustee, having due regard for the anticipated and
actual expenses, and the likelihood and timing, of the process of
liquidating or disposing of the Assets; and (b) the date on which
such Claim becomes Allowed. Creditors will recover 15 to 35% of
their claims.
* Class 4 Unsecured Medical Claims total $660,667,598 and will
receive a pro rata share of UMC Cash available after payment of or
reserve for Allowed Claims on the later of: (a) the date or dates
determined by the Liquidating Trustee, to the extent there is Cash
available for distribution in the judgment of the Liquidating
Trustee, having due regard for the anticipated and actual expenses,
and the likelihood and timing, of the process of liquidating or
disposing of the Assets; and (b) the date on which such Claim
becomes Allowed. Creditors will recover 1 to 5% of their claims.
* Class 7 Equity Interests Will receive no distributions and
retain no equity interests.
This Plan will be primarily funded by a combination of the Assets
that are Cash on hand and proceeds from liquidation or other
disposition of non-cash Assets, including Avoidance Actions
Recoveries and General Litigation Claim Recoveries. Certain funding
may also be provided from other Trust Assets.
A copy of the Modified Combined First Amended Disclosure Statement
and Plan of Liquidation dated August 14, 2023, is available at
https://urlcurt.com/u?l=FiO21F from Epiq, the claims agent.
Counsel for the Debtors:
J. Robert Williamson, Esq.
Ashley Reynolds Ray, Esq.
SCROGGINS & WILLIAMSON, P.C.
4401 Northside Parkway, Suite 450
Atlanta, GA 30327
Tel: (404) 893-3880
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Rachel B. Mersky, Esq.
MONZACK MERSKY AND BROWDER, P.A.
1201 Orange Street, Suite 400
Wilmington, DE 19801
Tel: (302) 656-8162
Fax: (302) 656-2769
E-mail: rmersky@monlaw.com
Counsel for the Official Committee of Unsecured Creditors:
Dennis A. Meloro, Esq.
GREENBERG TRAURIG, LLP
1007 North Orange Street, Suite 1200
Wilmington, DE 19801
Tel: (302) 661-7000
E-mail: melorod@gtlaw.com
- and -
John D. Elrod, Esq.
3333 Piedmont Road, NE, Suite 2500
Atlanta, GA 30305
Tel: (678) 553-2259
Fax: (678) 553-2269
E-mail: elrodj@gtlaw.com
About Aliera Cos. Inc.
Aliera Cos. Inc. is focused on providing a full spectrum of
revolutionary options and services to a multitude of industries
that fit every need and budget. The company provides services to
support its subsidiaries which focus on the unique aspects of the
health care industry.
Plaintiffs in a case -- docketed as Hanna Albina and Austin
Willard, individually and on behalf of others similarly situated,
Plaintiffs, v. The Aliera Companies, Inc., Trinity Healthshare,
Inc. and Oneshare Health, LLC Unity Healthshare, LLC, Case No.
20-CV-00496, (E.D. Ky., Dec. 11, 2020) -- filed an involuntary
petition under Chapter 11 of the Bankruptcy Code against Aliera
(Bankr. D. Del. Case No. 21-11548) on Dec. 5, 2021.
Joseph H. Huston, Jr., Esq., of Stevens & Lee, P.C., is the
petitioners and plaintiffs' counsel.
On Dec. 21, 2021, Aliera filed a voluntary Chapter 11 petition
(Bankr. N.D. Ga. Case No. 21-59493), disclosing assets of $1
million to $10 million and liabilities of $500 million to $1
billion. Advevo LLC and three other Aliera affiliates –
Ensurian Agency LLC, Tactic Edge Solutions LLC and USA Benefits &
Administrators LLC -- also filed voluntary Chapter 11 petitions on
Dec. 21, 2021.
On Jan. 25, 2022, the petitioning creditors obtained an order
granting their motion to transfer the voluntary Chapter 11 cases to
the Delaware Bankruptcy Court, which has been overseeing the
liquidation of Aliera's affiliated corporation, Trinity
Healthshare, Inc., now known as Sharity Ministries, Inc.
On Feb. 16, 2022, Judge John T. Dorsey of the Delaware Bankruptcy
Court ordered the consolidation of Aliera's voluntary Chapter 11
proceeding with the involuntary case filed by the petitioning
creditors (with Case No. 21-11548 being the surviving case number)
and terminated the company's voluntary proceeding.
Meanwhile, Judge Dorsey ordered the joint administration of the
involuntary proceeding and the four other voluntary cases filed by
the Aliera affiliates, with Case No. 21-11548 as the lead
bankruptcy case.
The Debtors tapped J. Robert Williamson, Esq., at Scroggins &
Williamson, P.C. and Monzack Mersky and Browder, PA as bankruptcy
counsels; SeatonHill Partners, LP as financial advisor; and Katie
Goodman, managing member of GGG Partners, LLC, as chief liquidation
officer. Epiq Corporate Restructuring, LLC is the claims and
noticing agent and administrative advisor.
The U.S. Trustee for Region 3 appointed an official committee of
unsecured creditors on Feb. 21, 2022. The committee is represented
by Greenberg Traurig, LLP.
AMBA MANAGEMENT: Taps Penachio Malara as Legal Counsel
------------------------------------------------------
Amba Management Corp. seeks approval from the U.S. Bankruptcy Court
for the Eastern District of New York to employ Penachio Malara, LLP
as its legal counsel.
The firm's services include:
(a) Assisting the Debtor in administering its Chapter 11
bankruptcy proceeding, preparing operating reports and complying
with applicable law and rules;
(b) Reviewing and resolving claims, which should be
disallowed; and
(c) Assisting in reorganizing and confirming a Chapter 11 plan
or implementing an alternative exit strategy.
The firm will be paid at these rates:
Anne Penachio, Esq. $495 per hour
Francis Malara, Esq. $450 per hour
Paralegal $225 per hour
In addition, the firm will seek reimbursement for its out-of-pocket
expenses.
Anne Penachio, Esq., a partner at Penachio Malara, disclosed in a
court filing that her firm is a "disinterested person" pursuant to
Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Anne Penachio, Esq.
Penachio Malara, LLP
245 Main Street, Suite 450
White Plains, NY 10601
Phone: (914) 946-2889
Email: frank@pmlawllp.com
About Amba Management Corp.
Amba Management Corp. in Jamaica, NY, filed its voluntary petition
for Chapter 11 protection (Bankr. E.D.N.Y. Case No. 23-42198) on
June 22, 2023, listing $0 to $50,000 in assets and $1 million to
$10 million in liabilities. Anderson Inniss as president, signed
the petition.
PENACHIO MALARA, LLP serve as the Debtor's legal counsel.
AMERITRANS EXPRESS: Court OKs Cash Collateral Access Thru Oct 1
---------------------------------------------------------------
The U.S. Bankruptcy Court for the U.S. Bankruptcy Court for the
Eastern District of Virginia, Alexandria Division, authorized
Ameritrans Express, LLC to use cash collateral on an interim basis
in accordance with the budget, with a 10% variance through October
1, 2023.
The Debtor requires the use of cash collateral to fund operations.
As previously reported by the Troubled Company Reporter, the
entities that assert an interest in the Debtor's cash collateral
are AJ Equity Group, LLC, the U.S. Small Business Administration,
Canon Advance LLC, EagleBank, EBF Holdings LLC dba Everest Business
Funding, Epic Advanced, LLC, Fiji Funding, LLC, Fora Financial
Business Loans, I Fund Experts, LLC, Masada Funding, Navitas Credit
Corp., Quick Bridge Funding, LLC, Union Funding Source, C T
Corporation System, Corporation Service Company, as Representative,
Secured Lender Solutions and Vernon Capital Group.
A final hearing on the matter is set for September 26 at 11 a.m.
A copy of the order is available at https://urlcurt.com/u?l=mZPq9t
from PacerMonitor.com.
About Ameritrans Express
Ameritrans Express LLC is part of the general freight trucking
industry.
Ameritrans Express LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Va. Case No. 23-11055) on June 29,
2023. In the petition filed by Frederick Amankwaa, as owner, the
Debtor reports estimated assets between $10 million and $50 million
and estimated liabilities between $1 million and $10 million.
Judge Brian F. Kenney oversees the case.
The Debtor is represented by Jonathan B. Vivona, Esq. at VIVONA
PANDURANGI, PLC.
ANASTASIA PARENT: Lord Abbett CB Fund Marks $12MM Loan at 22% Off
-----------------------------------------------------------------
Lord Abbett Corporate Bond Fund has marked its $12,737,624 loan
extended to Anastasia Parent LLC to market at $9,874,079 or 78% of
the outstanding amount, as of May 31, 2023, according to the
Corporate Bond's semi-annual report on Form N-CSR for the period
from December 1, 2022 to May 31, 2023, recently filed with the
Securities and Exchange Commission.
Lord Abbett Corporate Bond Fund is a participant in a 2018 Term
Loan B to Anastasia Parent LLC. The loan accrues interest at a rate
of 8.41% (3 mo. USD LIBOR + 3.75%) per annum. The loan matures on
August 11, 2025.
Lord Abbett Investment Trust is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end
management investment company and was organized as a Delaware
statutory trust on August 16, 1993. The Trust currently consists of
14 funds as of May 31, 2023. The semi-annual report covers 12 of
the funds namely: Lord Abbett Convertible Fund, Lord Abbett Core
Fixed Income Fund, Lord Abbett Core Plus Bond Fund, Lord Abbett
Corporate Bond Fund, Lord Abbett Floating Rate Fund, Lord Abbett
High Yield Fund, Lord Abbett Income Fund, Lord Abbett Inflation
Focused Fund, Lord Abbett Short Duration Core Bond Fund, Lord
Abbett Total Return Fund, Lord Abbett Ultra Short Bond Fund.
Anastasia Parent, LLC is the parent company of Anastasia Beverly
Hills, Inc., a prestige cosmetics brand that focuses on eyebrow
shaping products.
ASURION LLC: Lord Abbett CB Fund Marks $24MM Loan at 18% Off
------------------------------------------------------------
Lord Abbett Corporate Bond Fund has marked its $24,034,469 loan
extended to Asurion LLC to market at $19,733,380 or 82% of the
outstanding amount, as of May 31, 2023, according to Corporate
Bond's semi-annual report on Form N-CSR for the period from
December 1, 2022 to May 31, 2023, filed with the Securities and
Exchange Commission.
Lord Abbett Corporate Bond Fund is a participant in a 2021 Second
Lien Term Loan B4 to Asurion LLC. The loan accrues interest at a
rate of 10.40% per annum. The loan matures on January 20, 2029.
Lord Abbett Investment Trust is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end
management investment company and was organized as a Delaware
statutory trust on August 16, 1993. The Trust currently consists of
14 funds as of May 31, 2023. The semi-annual report covers 12 of
the funds namely: Lord Abbett Convertible Fund, Lord Abbett Core
Fixed Income Fund, Lord Abbett Core Plus Bond Fund, Lord Abbett
Corporate Bond Fund, Lord Abbett Floating Rate Fund, Lord Abbett
High Yield Fund, Lord Abbett Income Fund, Lord Abbett Inflation
Focused Fund, Lord Abbett Short Duration Core Bond Fund, Lord
Abbett Total Return Fund, Lord Abbett Ultra Short Bond Fund.
Asurion, LLC is a privately held company based in Nashville,
Tennessee, that provides insurance for smartphones, tablets,
consumer electronics, appliances, satellite receivers and jewelry.
ATH SPORTS: Disposable Income to Fund Plan Payments
---------------------------------------------------
ATH Sports Nutrition, LLC, filed with the U.S. Bankruptcy Court for
the District of Hawaii a Small Business Plan of Reorganization
dated August 14, 2023.
The Debtor is a direct-to-consumer ("DTC") manufacturer of work out
supplements, made from some of the cleanest, high-quality natural
ingredients available. Stuart Kaunaloa Kam, the Debtor's founder,
owns 100% of the Debtor.
Although 2021 was a year of significant growth and success, ATH
experienced simultaneous headwinds due to the underperformance of
one main contractor, Lief Labs LLC. The cash flow issues impacted
other parts of ATH's business. ATH also incurred emergency costs in
switching manufacturers in order to replace Lief Labs, but
ultimately the business impacts caused by Lief Labs were too severe
to absorb without filing for bankruptcy protection.
Additionally, the Debtor previously leased warehouse space at 449
Cooke Street, Honolulu, HI, 96813 (the "Cooke Street Space"). Prior
to the Chapter 11 Case, the Debtor vacated the Cooke Street Space,
as the expense related to the corresponding lease (the "Cooke
Street Space Lease") was causing the Debtor an unnecessary burden.
The Chapter 11 Case was filed, in part, to reject the Cooke Street
Space Lease.
Under the Plan, the Debtor will devote all of its projected
Disposable Income toward the payment of Creditors. The Plan will be
funded with the funds that are not for the payment of expenditures
necessary for the continuation, preservation, or operation of the
business of the Debtor.
The Plan provides for payment of Administrative Expense Claims,
Priority Tax Claims, and Allowed Secured Claims in accordance with
the Bankruptcy Code, and projects payment to Allowed General
Unsecured Claims. Finally, Holders of Equity Interests will retain
their Equity Interests as they existed on the Commencement Date.
Class 1 consists of the Secured claim of SBA. SBA's Allowed Secured
Claim shall be reinstated on the Effective Date and paid in full in
accordance with the terms of the EIDL Loan.
Class 2 consists of General Unsecured Claims. Except to the extent
that a Holder of an Allowed General Unsecured Claim agrees to a
different treatment, all Allowed General Unsecured Claims shall be
paid pro rata in quarterly installments from Disposable Income
commencing on Q1 2024. This Class is impaired. The allowed
unsecured claims total $767,609.78.
Equity Interest holders shall maintain existing Equity Interest.
The Plan will be funded by the proceeds realized from the
operations of the Debtor. On Confirmation of the Plan, all property
of the Debtor, tangible and intangible, including, without
limitation, will revert, free and clear of all Claims and Equitable
Interests except as provided in the Plan, to the Debtor.
The Debtor must submit all or such portion of the future earnings
or other future income of the Debtor to the supervision and control
of the Subchapter V Trustee as is necessary for the execution of
the Plan.
The Debtor's financial projections show that the Debtor will have
cash flow after paying operating expenses and postconfirmation
taxes to meet its obligations under the Plan. All Disposable Income
is devoted to paying Allowed Claims under the Plan.
A full-text copy of the Plan of Reorganization dated August 14,
2023 is available at https://urlcurt.com/u?l=9YaxuF from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Joseph C. Barsalona II, Esq.
Richard C. Solow, Esq.
Pashman Stein Walder Hayden, P.C.
1007 North Orange Street, 4th Floor, Suite 183
Wilmington, DE 19801
Telephone: (302) 592-6496
Email: jbarsalona@pashmanstein.com
rsolow@pashmanstein.com
Chuck C. Choi, Esq.
Allison A. Ito, Esq.
Choi & Ito
700 Bishop Street, Suite 1107
Honolulu, HI 96813
Telephone: (808) 533-1877
Facsimile: (808) 566-6900
Email: cchoi@hibklaw.com
aito@hibklaw.com
About ATH Sports Nutrition LLC
ATH Sports Nutrition LLC is a direct-to-consumer ("DTC")
manufacturer of work out supplements, made from some of the
cleanest, high-quality natural ingredients available.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Hawaii Case No. 23-00362) on May 15,
2023. In the petition signed by Stuart Kanaloa Kam, member, the
Debtor disclosed up to $10 million in both assets and liabilities.
Judge Robert J. Faris oversees the case.
Allison A. Ito, Esq., at Choi & Ito, represents the Debtor as legal
counsel.
ATLANTIC RADIO: Wins Cash Collateral Access on Final Basis
----------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Florida,
Miami Division, authorized Atlantic Radio Telephone, Inc. to use
cash collateral on a final basis in accordance with the budget.
As previously reported by the Troubled Company Reporter, the Debtor
has a secured line of credit with Popular Bank in the amount of
$300,000. The line of credit is secured by a lien on substantially
all of the Debtor's assets, as well as a mortgage lien against a
building owned by C. Webber Enterprises, Inc., an entity owned by
Conrad J. Webber, Sr., and leased to the Debtor.
The Debtor also received an economic injury disaster loan, and a
loan under the paycheck protection program, with the Small Business
Administration. The Debtor is current on the EIDL Loan, and the PPP
Loan was forgiven.
The court ruled that the Secured Creditors, the SBA and Popular
Bank, are granted continuing liens and security interests in the
Debtor's property, to protect their interests in the cash
collateral. These liens have the same extent, validity, and
priority as the pre-petition liens and security interests.
As additional adequate protection, the Secured Creditors are
granted valid, binding, enforceable, fully perfected, replacement
liens and first priority security interests in the Debtor's
presently owned or hereafter acquired property and assets.
The Debtor will pay Popular Bank and the SBA post-petition interest
at the respective contract (non-default) rates of interest,
commencing on August 15, 2023, and each month thereafter.
The Debtor's authorization to use the cash collateral will
terminate on the earlier of:
(i) the expiration of the Use Period;
(ii) by entry of a further order of the Court; or
(iii) the occurrence of any of the following:
(a) the failure of Debtor to materially comply with the
terms and provisions of the Interim Order; provided that the
Secured Creditors will notify the Debtor's counsel in writing by
telephone facsimile or e-mail of any noncompliance by Debtor with
the terms and provisions of the Interim Order, and the Debtor will
have three business days from the sending of the notice to cure
such noncompliance;
(b) any post-petition lien (other than any lien(s)
recorded against the property as of the petition date) is recorded
against the assets of the bankruptcy estate, except any lien
granted on assets of the bankruptcy estate to secure post-petition
financing to which lien the Secured Creditors have consented or
which has been granted pursuant to an order of the Court; or
(c) the appointment of a trustee (excluding a SubV Chapter
11 Trustee) or an examiner, or conversion of the case to a Chapter
7 case.
A continued hearing on the matter is set for October 18, 2023 at
9:30 a.m.
A copy of the order and the Debtor's budget is available at
https://urlcurt.com/u?l=TQbkSf from PacerMonitor.com.
The Debtor projects total deductions, on a monthly basis, as
follows:
$1,414250 for August 14 to September 13, 2023; and
$1,414250 for September 14 to October 16, 2023.
About Atlantic Radio Telephone, Inc.
Atlantic Radio Telephone, Inc. provides communication and avigation
solutions to individuals and organizations who find themselves "off
the grid." With locations in Miami and Fort Lauderdale, Florida,
Atlantic Radio provides sales, support, installation, integration
and repair services to customers located around the world in
industries including: maritime, military, first responders,
utilities, aviation, education and research, travel and tourism and
more.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 23-15483) on July 13,
2023. In the petition signed by Conrad J. Webber, Jr., president,
the Debtor disclosed up to $10 million in both assets and
liabilities.
Judge Laurel M. Isicoff oversees the case.
Michael D. Seese, Esq., at Seese, P.A., represents the Debtor as
egal counsel.
AZAR BOUJARAN-GHOMI: Taps Law Offices of Alla Kachan as Counsel
---------------------------------------------------------------
Azar Boujaran-Ghomi DDS P.C. seeks approval from the U.S.
Bankruptcy Court for the Eastern District of New York to employ the
Law Offices of Alla Kachan, PC.
The Debtor requires legal counsel to:
(a) Assist in administering the Debtor's Chapter 11 case;
(b) Make such motions or take such action as may be
appropriate or necessary under the Bankruptcy Code;
(c) Represent the Debtor in prosecuting adversary proceedings
to collect assets of the estate and such other actions as the
Debtor deems appropriate;
(d) Take such steps as may be necessary for the Debtor to
marshal and protect the estate's assets;
(e) Negotiate with creditors in formulating a plan of
reorganization for the Debtor;
(f) Draft and prosecute the confirmation of the Debtor's plan
of reorganization; and
(g) Render such additional services as the Debtor may require
in its bankruptcy case.
The firm will be paid at these rates:
Attorney $475 per hour
Clerks and Paraprofessionals $250 per hour
In addition, the firm will seek reimbursement for expenses
incurred.
The Debtor paid the firm an initial retainer of $15,000.
Alla Kachan, Esq., disclosed in a court filing that his firm is a
"disinterested person" pursuant to Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Alla Kachan, Esq.
Law Offices of Alla Kachan, PC
2799 Coney Island Avenue, Suite 202
Brooklyn, NY 11235
Telephone: (718) 513-3145
Email: alla@kachanlaw.com
About Azar Boujaran-Ghomi DDS
Azar Boujaran-Ghomi DDS P.C., filed a Chapter 11 bankruptcy
petition (Bankr. E.D.N.Y. Case No. 23-42065) on June 9, 2023, with
as much as $1 million in both assets and liabilities. Judge Jil
Mazer-Marino oversees the case.
The Debtor is represented by the Law Offices of Alla Kachan, PC.
BARE ARMS: Unsecureds to Recover 33% to 100% in 5 Years
-------------------------------------------------------
Bare Arms Limited Liability Company filed with the U.S. Bankruptcy
Court for the Eastern District of Kentucky a First Amended
Subchapter V Plan of Reorganization dated August 14, 2023.
The Debtor was organized as a privately held Kentucky limited
liability company on March 7, 2016. The principal place of the
company's business is located at 3502 Winchester Avenue.
The current economic conditions have negatively impacted customer
demand and resulted in an increase of cost of goods sold and of
labor, which in turn have made inventory and personnel management
more problematic, especially in the BATC Outlets located in Texas,
Nashville, and Alabama.
In order to build on its successes, Bare Arms has to shrink its
footprint and focus on reorganizing its corporate structure and
reforming its operations.
Debtor proposes a five-year plan during which it estimates paying a
combination of regular and periodic distributions on account of:
(a) unclassified adminstrative claims; (b) secured claims; and (c)
distributions ranging from 33% to 100% of allowed general unsecured
claims.
Class 7 is comprised of the non-priority unsecured portion of the
claim filed by the Ohio Department of Taxation, in total amount of
$1,000,00 on account of penalties assessed for the late filing or
payment of payroll liabilities allegedly owed by Debtor. (The "Ohio
Claim"). Because the Ohio Claim is de minimis, and the cost of
adminstrative the claim would outweigh the benefit of making
deferred payments over the duration of the plan, and doing so would
neither serve the creditor nor the estate, the claim shall be
separately classified for the sake of administrative convenience.
The Ohio Tax Claim shall be paid after confirmation, but not later
than the Effective Date of the Plan. Because the Plan does not
alter the rights of the Claimant, Class 7 is not impaired.
Class 8 is comprised of all nonpriority general unsecured claims
scheduled in Debtor's petition or filed as a proof of claim,
whether any such claim is deemed allowed, disputed, contingent, or
unliquidated. ("Class 8 Claims"). Without waiving any rights to
object to any claim, Debtor assumes that Claims Nos. 4, 5, 6, 7, 8,
and 9, in the aggregate amount of $123,220.70 are allowable
pursuant to Section 502(a) of the Code, ("Allowed General Unsecured
Claims").
Claims Nos. 2 and 10 held by Mall at Katy Mills, LP, and Opry Mills
Mall, LP respectively, represent $323,044.85 of the total Class 8
Claims, and have not yet been allowed and/or have been scheduled as
disputed, contingent, and/or unliquidated in Debtor’s schedules.
("Disputed Class 8 Claims").
Provided that the Plan is confirmed under Section 1191(a), the
following distributions shall be made to Class 8 Claimants:
* Initial GUC Disbursement. On the first day of the first
calendar quarter following the Effective Date, (the "GUC
Disbursement Date"), Class 8 Claimants shall be entitled to an
initial distribution from that portion of the GUC Disbursement Fund
equal to: (A) the sum of all Allowed General Unsecured Claims;
Divided by (B) the sum of all Class 8 Claims; Muliplied by (C) the
amounts on deposit in the GUC Disbursement Fund (the "Initial GUC
Disbursement").
* Minimum Deposits adjustments. After the Initial GUC
Disbursement, Debtor shall continue to make Minimum Deposits in
equal monthly installments over the number of months remaining in
the Plan that, in the aggregate, amount to not less than 33% of all
Class 8 Claims. After the Initial GUC Disbursement, Minimum
Deposits shall be reduced proportionately from time to time by the
amount of any portion of a Class 8 Claim that is disallowed by a
final order of the Court.
* Minimum Distributions. Class 8 Claimants shall receive not
less than 33% of the allowed amount of their claim. Class 8
Claimants shall be entitled to disbursements from the GUC
Disbursement Fund, on the first day of the first calendar quarter
following the Initial GUC Disbursement and each calendar quarter
thereafter, in the case of Allowed General Unsecured Claimants, or
on the first day of the first calendar quarter following the
Delayed GUC Disbursement and each calendar quarter thereafter, in
the case of the allowed Disputed Class 8 Claimant (the "Minimum
Distributions").
* Maximum Distribution. In no event shall the sum of the
Initial GUC Disbursement, the Delayed GUC Disbursement, the Minimum
Distributions, and Periodic Distributions exceed 100% of the total
amount of the claims held by Class 5 Claimants. ("Maximum
Distribution"). Upon receiving Maximum Distribution, Class 5
Claimants shall not be entitled to any further disbursements or
distributions under this Plan, and the Plan shall be deemed to have
been completed.
Class 8 is impaired, and holders of Allowed Class 8 claims shall be
entitled to vote to accept or to reject the Plan.
To implement the Plan, Debtor intends to: (a) reorganize its
corporate structure and that of its non-filing affiliates; (b)
retain and subsequently transfer property of the estate to its
nonfiling affiliates; (b) modify the operational model of each of
the Bare Brands to increase efficiency and lower operational
expenses; and (d) launch various sales initiatives of new services
and product lines, which together with the implantation of improved
efficiency protocols will increase the overall profitability of the
Bare Group. (The "Project"). The reorganized debtor intends to
finance the Plan with operating income and where appropriate
post-petition financing and/or proceeds from the sale or exchange
of securities in the company.
A full-text copy of the First Amended Subchapter V Plan dated
August 14, 2023 is available at https://urlcurt.com/u?l=oCBHH2 from
PacerMonitor.com at no charge.
Attorney for Debtor:
J. Christian A. Dennery, Esq.
Dennery, PLLC
7310 Turfway Rd., Suite 550
Florence, KY 41042
Telephone: (859) 445-5495
Facsimile: (859) 286-6726
Email: jcdennery@dennerypllc.com
About Bare Arms Limited Liability Company
Bare Arms Limited Liability Company sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. E.D. Ky. Case No 23-10085)
on May 15, 2023. In the petition signed by William H. Bare, member
and corporate representative, the Debtor disclosed up to $10
million in both assets and liabilities.
Judge Tracey N. Wise oversees the case.
J. Christian Dennery, Esq., at Dennery, PLLC, represents the Debtor
as legal counsel.
BEN'S GARDEN: Gets OK to Hire Wild Maney & Resnick as Accountant
----------------------------------------------------------------
Ben's Garden Inc. received approval from the U.S. Bankruptcy Court
for the Eastern District of New York to employ Wild Maney &
Resnick, LLP as its accountant.
The Debtor requires an accountant to prepare its 2018-2022 federal
and NYS/NYC business tax returns and review its books and records.
The firm will be paid at these rates:
Partners $450 per hour
Managers $325 to $400 per hour
Associates $275 to 300 per hour
Admin $150 to 250 per hour
The Debtor paid the firm a retainer of $6,000.
Craig Wild, a partner at Wild, Maney & Resnick, 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 J. Wild
Wild Maney & Resnick, LLP
185 Froehlich Farm Blvd
Woodbury, NY 11797
Tel: (516) 364-8888
About Ben's Garden
Ben's Garden Inc., a company in Stony Brook, N.Y., filed its
voluntary petition for Chapter 11 protection (Bankr. E.D.N.Y. Case
No. 22-72391) on Sept. 12, 2022, with $50,000 to $100,000 in assets
and $1 million to $10 million in liabilities. Benjamin Busko,
president, signed the petition.
Judge Louis A. Scarcella oversees the case.
The Debtor tapped Certilman Balin Adler & Hyman, LLP as legal
counsel and Wild Maney & Resnick, LLP as accountant.
BEP ULTERRA: Moody's Withdraws 'B2' CFR Following Debt Repayment
----------------------------------------------------------------
Moody's Investors Service withdrew all of BEP Ulterra Holdings,
Inc.'s (Ulterra) ratings, including its B2 Corporate Family Rating,
B2-PD Probability of Default Rating and B2 senior secured term loan
rating. The outlook was changed to rating withdrawn from rating
under review. These withdrawals follow repayment of its term loan
debt in conjunction with the closing of the acquisition of Ulterra
by Patterson-UTI Energy, Inc. (Patterson-UTI, Baa3 stable).
Withdrawals:
Issuer: BEP Ulterra Holdings, Inc.
Corporate Family Rating, Withdrawn, previously rated B2,
Placed on Review for Upgrade
Probability of Default Rating, Withdrawn, previously
rated B2-PD, Placed on Review for Upgrade
Backed Senior Secured Term Loan B, Withdrawn,
previously rated B2, Placed on Review for Upgrade
Outlook Actions:
Issuer: BEP Ulterra Holdings, Inc.
Outlook, Changed To Rating Withdrawn From Rating
Under Review
RATINGS RATIONALE
Ulterra has fully repaid its outstanding term loan debt in
conjunction with the closing of the acquisition of by
Patterson-UTI. All of Ulterra's ratings have been withdrawn since
all of its rated debt is no longer outstanding.
Founded in 2005, BEP Ulterra Holdings, Inc. is a manufacturer of
Polycrystalline Diamond Compact (PDC) drill-bits and stick-slip
reduction tools headquartered in Fort Worth, Texas. Ulterra was
majority owned by the private equity firms Blackstone Group and
American Securities, and is now a wholly owned subsidiary of
Patterson-UTI.
BETTER SOUL: Case Summary & Two Unsecured Creditors
---------------------------------------------------
Debtor: Better Soul Inc.
3151 Airway M1
Costa Mesa, CA 92626
Business Description: The Debtor owns several properties in
Florida and California owned by
its subsidiaries.
Chapter 11 Petition Date: August 18, 2023
Court: United States Bankruptcy Court
Central District of California
Case No.: 23-11680
Judge: Hon. Scott C. Clarkson
Debtor's Counsel: Dennis Connelly, Esq.
LAW OFFICE OF DENNIS CONNELLY
2901 W. Coast Hwy Ste 200
Newport Beach, CA 92663
Tel: (949) 556-9775
Fax: (949) 258-5093
Email: socalesquire@gmail.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Jamie Littleton as CEO.
A full-text copy of the petition containing, among other items, a
list of the Debtor's two unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/QSYLQTA/Better_Soul_Inc__cacbke-23-11680__0001.0.pdf?mcid=tGE4TAMA
BHD SLT: Continued Operations to Fund Plan Payments
---------------------------------------------------
BHD SLT, LLC filed with the U.S. Bankruptcy Court for the Eastern
District of California a Plan of Reorganization under Subchapter V
dated August 13, 2023.
Debtor is a franchisee of Beach Hut Deli located in South Lake
Tahoe, California. Debtor provides sandwiches and other deli items
for consumption on premises and for take away.
The Debtor has both secured and unsecured debt. As of Petition Date
May 15, 2023, the Debtor's Schedules listed $175,000 in secured
debt obligations and $109,182.64 in unsecured claims.
The Debtor has two secured or partially secured or unsecured
classes: (1) Shteve Brown holds a claim of $76,000 with a first
position UCC-1 blanket security interest on all assets filed on
February 9, 2018; (2) Expansion Capital Group holds a secured claim
of $80,937.00 per Proof of Claim No. 1 filed May 30, 2023; (3)
General Unsecured Creditors includes the unsecured portions of
Classes One and Two as general unsecured claims. Unsecured
creditors other than the unsecured portions of Classes One and Two
are estimated at $41,659.91. (4) Equity Security Interests is the
equity interest of Managing Member Kylie Roberts.
By the Plan, the Debtor proposes to (a) pay Steve Brown's claim to
the extent secured; (b) pay Expansion Capital to the extent
secured; (c) pay Class 3 Debtor's unsecured creditors the balance
of the Projected Disposable Income of the Debtor available after
the payment of allowed secured claims and priority administrative
and tax claims.
The proposed pyments to Classes One through Three reflect the
Projected Disposable Income of the Debtor through the term of the
Plan. The Debtor will make no distributions to holders of Equity
Interests unless and until all payments required under this Plan
have been paid current and there is a reasonable expectation that
payments under the Plan will remain current.
Class 3 consists of General Unsecured Creditors. Paid disposable
income over Plan term after secured claims.
The Debtor will use the cash generated from operation of its
business to make payments directly to holders of Allowed Claims and
meet its responsibilities on its assumed executory contracts and
leases on the terms and conditions provided in this Plan.
A full-text copy of the Plan of Reorganization dated August 13,
2023 is available at https://urlcurt.com/u?l=lqZXSt from
PacerMonitor.com at no charge.
Attorneys for the Debtor:
Stephen Reynolds, Esq.
Reynolds Law Corporation
424 Second Street, Suite A
Davis, CA 95616
Tel: (530) 297-5030
Fax: (530) 297-5077
Email: sreynolds@lr-law.net
About BHD SLT
BHD SLT, LLC is a franchisee of Beach Hut Deli located in South
Lake Tahoe, California.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. E.D. Calif. Case No. 23-21573) on May 15,
2023, with as much as $50,000 in both assets and liabilities. David
Sousa has been appointed as Subchapter V trustee.
Judge Fredrick E. Clement oversees the case.
The Debtor tapped Stephen M. Reynolds, Esq., at Reynolds Law
Corporation as bankruptcy counsel and Gonzales & Associates, Inc.
as accountant.
BIGHORN RESTAURANTS: Court OKs Deal Cash Collateral Access
----------------------------------------------------------
The U.S. Bankruptcy Court for the District of Colorado authorized
Bighorn Restaurants, LLC and affiliates to use cash collateral in
accordance with its agreement with Cadence Bank.
The Debtors' ability to use cash collateral under the Final Order
currently expired on August 14, 2023 and the Debtors anticipate
closing the sales approved pursuant to the Sale Orders on August
15, 2023.
The parties agreed, notwithstanding anything to the contrary in the
Final Order, the Debtors' ability to use cash collateral under the
Final Order will terminate on the earlier of: (i) October 2, 2023
at 5 p.m. (MT), (ii) the occurrence of a Termination Event, (iii)
entry of additional orders regarding cash collateral, and (iv) the
Debtors' failure to pay Cadence $13.6 million (or a revised
mutually agreed amount that will be finalized on August 14, 2023)
within one business day following the closing of the asset sale to
Arc Burger, LLC.
The Debtors' Wind-Down Budget, reflects anticipated expenses
associated for weeks of August 14, 2023 through the week of October
2, 2023, covering outstanding expenses through the closings as well
as with the wind-down of Debtors' estate. The Debtors are
authorized to use the Wind-Down Funds in accordance with the
Wind-Down Budget to the extent that expenses set forth in the
Wind-Down Budget are actually incurred by Debtors.
Within one business day following the closing of the asset sale to
Arc Burger, LLC,, Debtors will pay Cadence $13.6 million or a
revised mutually agreed amount that will be finalized on August 14,
2023 from cash collateral and the Net Proceeds of the sales of
Debtors' assets.
To the extent that the Wind-Down Funds are not used to pay expenses
incurred by Debtors in accordance with the Wind-Down Budget, such
funds will be paid by the Debtors to Cadence on a date to be agreed
upon in writing by Debtors and Cadence, but in no event later than
August 14, 2024, for application to the Prepetition Obligations in
accordance with the Prepetition Loan Documents; provided, however,
that on or before November 16, 2023, Debtors will pay Cadence all
Wind-Down Funds to the extent that Debtors do not anticipate
requiring such funds to cover expenses associated with the
wind-down of Debtors' estates, for application by Cadence to the
Prepetition Obligations.
Beginning on October 6, 2023 and bi-weekly thereafter, the Debtors
will provide Cadence with an accounting of all funds actually spent
by Debtors in comparison to the Wind-Down Budget, reflecting weekly
and cumulative (from October 2, 2023 through the prior week)
receipts and disbursements, including a line-item, side-by-side
comparison of amounts spent with corresponding projected categories
in the Wind-Down Budget.
A copy of the stipulation and wind-down budget is available at
https://urlcurt.com/u?l=Fq1zvX from PacerMonitor.com.
A copy of the order is available at https://urlcurt.com/u?l=Dd51G4
from PacerMonitor.com.
The Debtor projects total operating disbursements, on a weekly
basis, as follows:
$1,323,000 for the week ending August 28, 2023;
$700,000 for the week ending September 4, 2023;
$371,000 for the week ending September 11, 2023;
$91,000 for the week ending September 18, 2023;
$141,000 for the week ending September 25, 2023; and
$161,000 for the week ending October 2, 2023.
About Bighorn Restaurants
Bighorn Restaurants, LLC and affiliates constitute one of the
largest current franchisees of Hardee's restaurants. They currently
operate 108 restaurants, which span the states of Alabama, Florida,
Georgia, South Carolina, Kansas, Missouri, Wyoming and Montana. The
restaurants are operated by Empire, Heartland, Bighorn, and
Atlantic Star.
Bighorn Restaurants and its affiliates sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Colo. Lead Case
No. 23-11919) on May 4, 2023. In the petition signed by its chief
executive officer, Dewey R. Brown, Bighorn Restaurants disclosed $1
million to $10 million in assets and $10 million to $50 million in
liabilities.
Judge Michael E. Romero oversees the cases.
The Debtors tapped Markus Williams Young & Hunsicker, LLC as
bankruptcy counsel; Hutchinson Black and Cook, LLC as their special
counsel; MorrisAnderson & Associates, Ltd. as financial advisor;
Brookwood Associates, LLC as investment banker; and A&G Realty
Partners as real estate advisor. BMC Group, Inc. is the Debtors'
noticing agent.
Cadence Bank, as lender, is represented by Frank W. DeBorde, Esq.,
and Lisa Wolgast, Esq., at Morris, Manning & Martin, LLP.
BISON LAND: Unsecureds to Get Share of Income for 3 Years
---------------------------------------------------------
Bison Land & Minerals, LLC, filed with the U.S. Bankruptcy Court
for the Southern District of Mississippi a Subchapter V Plan of
Reorganization dated August 14, 2023.
The Debtor owns Chapter 5 avoidance causes of action as well and it
expressly reserves payments made in the ninety (90) days before
filing, including Claims, to clawback those payments.
Specifically, a number of open account Creditors attempted to file
materialman's/construction/related liens within the 90 days prior
to the filing of the Petition in this case, thereby allegedly (or
possibly) elevating themselves from general, open account Unsecured
Creditors to Secured Creditors. Those efforts are preferential
transfers and/or fraudulent conveyances, thereby rendering all
efforts at those lien attempts in the 90 days (for preferences) and
the 2 years (for fraudulent conveyances) voidable and of no effect.
The Debtor also reserves all Claims and causes of action described
in its Schedules, including, but not limited to, Claims against
Greg Pollard and Kenny Goh for breach of contract, breach of
fiduciary duty, negligence and waste. Debtor (and EnTec Services,
LLC) also reserves all rights for the return of a rig, and
resultant damages, wrongfully taken from the Debtor by Hunter
Drilling Services, Inc. As a result, the Debtor has no Secured
Creditors and it will pursue avoidance Claims and causes of action
post-confirmation.
The Debtor was involved in a significant amount of litigation,
prior to the filing of the Petition.
The equity security interests in the Debtor are worthless in that
the Debtor's liabilities exceed its assets. As a result, upon the
Effective Date of the Plan, the equity security interests in the
Debtor will be cancelled, and existing shareholders will have their
equity security interests held for naught and voided.
Geary Trigleth will infuse at least $100,000 into the Debtor on or
before the Effective Date, to complete the well in North Dakota and
begin drilling operations. In exchange for the $100,000 capital
contribution, all of the new equity security interests will be
reissued to Mr. Trigleth as a result. Mr. Trigleth will be the sole
shareholder of the Debtor or its successor.
Mr. Trigleth's vast experience in the oil and gas industry in
general, and in drilling/production in particular, will be needed
to allow him to resume operations of the Debtor, so that he will
again be the driving force and decision maker behind the Debtor's
post-confirmation efforts to complete the wells (which the Debtor's
existing equity security holders were unable to finalize) and begin
production. Although there are risks in every Chapter 11 plan, and
there are certainly risks in every oil and gas venture, the Debtor
believes that the infusion of funds, and, especially, the
experience and management capabilities of Mr. Trigleth will render
the Plan feasible despite these risks that are inherent in this
business.
Class 3 consists of General, Unsecured Creditors. General,
Unsecured Creditors will receive the Debtor's projected disposable
income over the life of the Plan. Obviously, the start date of
revenues will not occur in September or October of this year, so
that the start date of revenues will be later, depending upon Plan
Confirmation. The start date of the projected disposable income
analysis will be extended, consistent with Confirmation/Effective
Date.
The Debtor's equity security holders that currently exist will have
their membership interests cancelled and held for naught, with new
equity interests being issued only to Mr. Trigleth.
The Plan will be funded through an infusion of capital from Mr.
Trigleth in the sum of $100,000, which will jumpstart the Debtor's
efforts to complete the unfinished wells and to begin drilling.
This infusion will produce revenue.
To the extent Claims of Secured Creditors are not negotiated or do
not contain default provisions, the default provisions of Secured
Creditors' Claims are: in the event the Debtor defaults upon
payment of any Secured Creditor Claim that does not contain
specific default provisions in either prior adequate protection
orders or in the order confirming the Plan, the Secured Creditor
shall provide notice to the Debtor and its counsel of the default.
With respect to the Claims of Unsecured Creditors, in the event
Unsecured Creditors are not paid the Debtor's projected disposable
income, on a Pro-Rata basis, upon the first, second and third
anniversary dates of this 3-year Plan, the affected Unsecured
Creditor or Creditors shall provide notice to the Debtor and its
counsel of the default for failure to pay the projected disposable
income in years one, two or three of the Plan.
A full-text copy of the Subchapter V Plan dated August 14, 2023 is
available at https://urlcurt.com/u?l=HQe6xQ from PacerMonitor.com
at no charge.
Counsel to the Debtor:
Craig M. Geno, Esq.
Law Offices of Craig M. Geno, PLLC
587 Highland Colony Parkway
Ridgeland, MS 39157
Tel: (601) 427-0048
Email: cmgeno@cmgenolaw.com
About Bison Land & Minerals
Bison Land & Minerals, LLC, filed a Chapter 11 bankruptcy petition
(Bankr. S.D. Miss. Case No. 23-01140) on May 15, 2023. The Debtor
hires the Law Offices of Craig M. Geno, PLLC as counsel.
BROOKWOOD VILLAGE: Property Sale Proceeds to Fund Plan
------------------------------------------------------
Brookwood Village LLC filed with the U.S. Bankruptcy Court for the
Middle District of Louisiana a Disclosure Statement in support of
Plan of Liquidation dated August 14, 2023.
The Debtor is a Louisiana limited liability company that was
organized in 2014. It owns and operates a 75,000 SF strip mall
located in Baton Rouge, LA at the intersection of Plank Road and
Comite Drive.
Although the Debtor owns two parcels of land, they are contiguous,
and thus, the Debtor is considered a "single asset real estate"
debtor under the Bankruptcy Code. The Debtor has three members:
Tyrone Legette (20%), Randolph "Randy" Legette (10%, and Kenneth
Legette (70%). They are brothers.
Over the years, the Debtor attempted to increase occupancy to
support the upkeep, maintenance, property taxes and mortgage of the
property. The Debtor has only been able to maintain a 35% occupancy
which cannot support the total expenses for the property. This,
along with a foreclosure action commenced by Kiraly, regrettably
forced the Debtor to seek relief under Chapter 11 of the Bankruptcy
Code.
The Debtor explored two options for restructuring. First, the
Debtor discussed a new equity infusion with Renaissance Group.
Under this plan, Renaissance Group would have received membership
interests in the Debtor in exchange for a Cash contribution. This
infusion of Cash would have then been used to rehabilitate
Brookwood Village.
Second, the Debtor explored selling Bookwood Village. This is the
plan that the Debtor ultimately decided upon. Either the Debtor
would have hired an auctioneer/broker such as David Gilmore at SVN
or engaged in a private sale. The Debtor received a purchase offer
from Renaissance Group which was already familiar with the
immovable property. Although Renaissance Group and the Debtor have
not agreed on a final purchase price, the Debtor anticipate a
purchase price of between $500,000 and $600,000.
Class 5 consists of Allowed General Unsecured Claims. After payment
of Class 1, 2, 3 and 4 Secured Claims as well as Allowed
Administrative and Priority Tax Claims, each holder of an Allowed
General Unsecured Claim shall receive on the Distribution Date, in
full satisfaction, settlement, release, and discharge of and in
exchange for such Allowed Claim, a Pro Rata share of the remaining
proceeds from the sale of Brookwood Village up to the amount of its
Allowed Claim. Class 5 is Impaired.
Class 6 consists of the Brookwood Interests, i.e., membership
interests in the Debtor. Holder of Brookwood Interests shall retain
their Interests. They shall not receive or retain any property
under the Plan on account of such Interests unless the proceeds
from the sale of Brookwood Village are sufficient to pay holders of
Class 1, 2, 3, 4 and 5 Claims as well as Administrative and
Priority Tax Claims in full. Any remaining Cash proceeds shall then
be distributed to holders of Brookwood Interests.
The Debtor intends to sell its shopping center to Renaissance
Group. The Debtor expects to close the sale of Brookwood Village to
Renaissance Group by December 31, 2023. The Debtor anticipates
selling the shopping center to Renaissance Group for between
$500,000 and $600,000.
If the sale is not consummated within 120 days after Confirmation,
then the Debtor will file a separate motion to hire an
auctioneer/broker such as David Gilmore at SVN to market and sell
Brookwood Village.
The net proceeds of the sale of Brookwood Village shall be
distributed to Holders of certain Claims until paid in full in the
following priority (in each case on a Pro Rata Basis): (a) first,
on account of the Pastorello Secured Claim (Class 1); (b) second,
on account of the Kiraly Secured Claim (Class 2); (c) third, on
account of the Renaissance Group Secured Claim (Class 3), but only
if Renaissance Group does not purchase Brookwood Village; (d)
fourth, on account of the EBRP Sheriff Secured Claim (Class 4); (e)
fifth, on account of Allowed Administrative Claims, including
Professional Fee Claims and unpaid Quarterly Fees owed to the U.S.
Trustee; (f) sixth, on account of Allowed Priority Tax Claims; (g)
seventh, on account of Allowed General Unsecured Claims; and (h)
eighth, the Debtor.
A full-text copy of the Disclosure Statement dated August 14, 2023
is available at https://urlcurt.com/u?l=eFi0QR from
PacerMonitor.com at no charge.
Attorneys for the Debtor:
Ryan J. Richmond, Esq.
Ashley M. Caruso, Esq.
Sternberg Naccari & White, LLC
251 Florida Street, Suite 203
Baton Rouge, LA 70801-1703
Tel: (225) 412-3667
Fax: (225) 286-3046
Email: ryan@snw.law
ashley@snw.law
About Brookwood Village
Brookwood Village LLC in New Orleans, LA, filed its voluntary
petition for Chapter 11 protection (Bankr. M.D. La. Case No.
23-10312) on May 16, 2023, listing $1,433,667 in assets and
$4,515,344 in liabilities. Tyrone C. Legette as manager, signed the
petition.
Sternberg Naccari & White, LLC serves as the Debtor's legal
counsel.
BUCKEYE LODGING: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Buckeye Lodging, LLC
5125 Post Road
Dublin OH 43017
Business Description: The Debtor is part of the traveler
accommodation industry.
Chapter 11 Petition Date: August 18, 2023
Court: United States Bankruptcy Court
Southern District of Ohio
Case No.: 23-52861
Judge: Hon. Mina Nami Khorrami
Debtor's Counsel: David Beck, Esq.
CARPENTERS LIPPS LLP
280 N. High St., Suite 1300
Columbus OH 43215
Tel: 614-365-4142
Email: beck@carpenterlipps.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Abijit Vasani as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/EUMPWQI/Buckeye_Lodging_LLC__ohsbke-23-52861__0001.0.pdf?mcid=tGE4TAMA
BULGARIAN BAR: Seeks Nov. 8 Extension to File Plan
---------------------------------------------------
BULGARIAN BAR: Seeks to Extend Time to File Plan to November 8
Bulgarian Bar, Inc. asks the U.S. Bankruptcy Court for the
Eastern District of New York to extend the time to file a chapter
11 small business plan of reorganization and disclosure statement
to November 8, 2023.
Unless extended, the Debtor's periods to file the plan of
reorganization and disclosure statement are set to expire on
August 10, 2023.
The Debtor explained that the extension is necessary due to the
fact that it needs additional time to resolve the claim filed by
Ketevan (Keti) Chichinadze (the "FLSA Creditor"), since the
automatic stay imposed by section 362(a) of the Bankruptcy Code
was modified under section 362(d) of the Bankruptcy Code as to
permit the District Court Action, including but not limited to
any pretrial and trial proceedings, to proceed against the
Debtor, for the purpose of determining any amount of FLSA
Creditor's claim against the Debtor. Consequently, the Debtor
needs an additional time to proceed in an action pending in the
U.S. District Court for the Southern District of New York under
Index 1:18-cv-08069 and thereafter to file a plan of
reorganization and disclosure statement.
The Debtor also stated that it needs time to renegotiate the
terms of the settlement agreement, reached with the landlord,
CAJ 113 LUDLOW CORP due to changes in circumstances.
Bulgarian Bar, Inc. is represented by:
Alla Kachan, Esq.
LAW OFFICE OF ALLA KACHAN, P.C.
2799 Coney Island Avenue, Suite 202
Brooklyn, NY 11235
Tel: (718) 513-3145
Email: alla@kachanlaw.com
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.
BURKE BRANDS: Court OKs Cash Collateral Access Thru Sept 29
-----------------------------------------------------------
The U.S. Bankruptcy Court for the U.S. Bankruptcy Court for the
Southern District of Florida, Miami Division, authorized Burke
Brands, LLC, dba Don Pablo Coffee, to use the cash collateral of
U.S. Century Bank on an interim basis through September 29, 2023.
The Debtor is permitted to use cash collateral, as defined in 11
U.S.C. Section 363(a), including the cash or noncash proceeds of
assets that were not cash collateral on the Petition Date up to the
amounts shown in the budget, with a 10% variance.
Additionally, on or before September 14, the Debtor is directed to
provide the Lender:
-- a comparison between its projected and actual budget;
-- a projected budget beyond September 28;
-- a list of receivables that have been redirected to its
Debtor-in-Possession account located at Wells Fargo Bank; and
-- a list of receivables expected to be re-directed from its
prepetition bank account to its DIP Account.
As adequate protection for the use of cash collateral, the Lender
is granted valid, perfected replacement liens upon, and security
interests in, the Pre-petition Collateral, to the same extent,
validity and priority as the Lender's existing prepetition liens on
any and all assets including but not limited to all cash generated
post-petition from the Lender's Pre-Petition Collateral.
In the event the Court ultimately determines Velocity Capital Group
or another Merchant Cash Advance company had a valid ownership or
security interest in the Debtor's receivables on December 29, 2022,
VCG or such other MCA will be granted a valid, perfected
replacement lien upon, and security interest in the Receivables, to
the same extent, validity and priority as any ownership interest or
liens of VCG or such other MCA determined by the Court to have
existed prepetition on the Receivables.
These events constitute an "Event of Default":
a. If a trustee is appointed in the Chapter 11 Case;
b. If the Debtor breaches any term or condition of the Order
or any of the Lender's loan documents, other than defaults existing
as of the Petition Date;
c. If the Case is converted to a case under Chapter 7 of the
Bankruptcy Code;
d. If the Case is dismissed; or
e. If any violation or breach of any provision of the Order
occurs.
A continued hearing on the matter is set for September 28 at 11
a.m. by video conference.
A copy of the Court's order and the Debtor's budget is available at
https://urlcurt.com/u?l=XodF0L from PacerMonitor.com.
The Debtor projects total operating disbursements, on a weekly
basis, as follows:
$179,009 for the week ending August 26, 2023;
$165,811 for the week ending September 2, 2023;
$182,596 for the week ending September 9, 2023;
$162,128 for the week ending September 16, 2023;
$178,643 for the week ending September 23, 2023; and
$162,128 for the week ending September 30, 2023.
About Burke Brands LLC
Burke Brands LLC -- https://www.burkebrands.com/ -- is a privately
owned coffee company. It does business as Don Pablo Coffee.
Burke Brands LLC filed a petition for relief under Subchapter V of
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Fla. Case No.
22-19932) on Dec. 30, 2022. In the petition filed by Darron Burke,
as manager, the Debtor reported assets and liabilities between $1
million and $10 million.
Judge Robert A. Mark oversees the case.
Linda Marie Leali has been appointed as Subchapter V trustee.
The Debtor is represented by Aaron A Wernick, Esq., at Wernick Law,
PLLC.
CASCADE PARENT: S&P Alters Outlook to Negative, Affirms 'B-' ICR
----------------------------------------------------------------
S&P Global Ratings revised the outlook on Cascade Parent Ltd. to
negative from stable. At the same time, it affirmed all its ratings
on the company, including its 'B-' issuer credit rating on
Cascade.
S&P said, "We base the outlook revision on our view that materially
higher interest expense and negative free operating cash flow
(FOCF) could pressure Cascade's EBITDA interest coverage close to
1.0x and, given the company's high fixed charges, tighten liquidity
in the next 12 months. We believe these risks would impair
Cascade's ability to sustainably service its capital structure.
"Our negative outlook reflects the risk that the company could face
additional business operations or greater-than-expected
macroeconomic headwinds such that Cascade continues to underperform
our FOCF forecast leading to significant pressure on both capital
structure and liquidity.
"The outlook revision reflects our belief that Cascade's liquidity
position will face heightened pressure over the next 12 months
given operational challenges and increased cash interest burden. In
fiscal 2022, Cascade underperformed our forecast with revenue and
EBITDA at 7% and 14%, respectively, below our expectations.
Moreover, for the first half of fiscal 2023, topline sales remained
stressed because of demand headwinds for its core products (except
Parallels) and secular decline in noncore mature products. EBITDA
was 7% lower than the similar period last year. In addition to the
operational challenges, there have been high working capital
outflows during the year. As a result, the company reported
close-to-breakeven FOCF for the six months ended May 31, 2023. We
forecast FOCF will be negative in 2023.
"As a result of the macroeconomic slowdown and increasing interest
rates, Cascade's liquidity is deteriorating. As of May 31, 2023,
the company had about $22 million in cash compared with more than
$105 million as of May 31, 2022. However, all of Cascade's debt is
floating rate, and we project cash interest expense will increase
considerably to about $65 million, from about $45 million in 2022;
therefore, it could be challenging for the company to cover its
interest burden with organic cash flow. We forecast Cascade's
adjusted EBITDA interest coverage ratio will deteriorate close to
1.0x for the next 12 months. In addition, we anticipate that the
company's cash fixed charges (about $100 million) --remaining
interest expense, working capital uses, capital expenditures
(capex), and term loan amortization payments--will not be covered
by EBITDA and, therefore, Cascade will be reliant on its revolver
and cash on hand, sources that we believe could become depleted
over the next few quarters.
"We expect revenue to decline over the next 12 months, spurred by
Cascade's transition to a subscription-based product offering as
well as conservative spending in the IT industry. As Cascade
gradually migrates toward subscription-based product offerings (65%
of revenues) from legacy perpetual licensing, with less focus on
its noncore mature products (15% of revenues), we expect its
revenue will decline by about 2% in fiscal 2023. This ongoing
migration resulted in flat year-over-year revenues in 2022 against
our expectation of 8% growth. We anticipate the growth in
subscription licenses is not sufficient to fully offset the ongoing
drop in perpetual license revenues for the next 12 months, leading
to a delay in revenue growth during the transition. We view
Cascade's products as entrenched in its customers' IT operations,
as evidenced by its high retention rates of about 70% and the
approximately 15% year-to-date expansion in its subscription
licenses. However, an increasingly uncertain IT spending
environment could delay new bookings and elongate sales cycles,
limiting our forecast of S&P Global Ratings-adjusted EBITDA
remaining flat in the next 12 months. Nevertheless, as the company
continues to move away from a nonrecurring product base, we expect
its proportion of recurring revenues (mainly Parallels; about 43%
of total revenues) will remain in the high-70% area, which will
likely provide Cascade with some revenue stability and visibility
amid the rising global economic uncertainty.
"The company's ability to generate FOCF in the near term could be
pressured absent improvements to operating performance. The
company's EBITDA margin (S&P Global Ratings-adjusted) decreased
about 200 basis points year over year in the first half of fiscal
2023. Notwithstanding the company's asset-light business model,
under which Cascade benefits from low capex requirements, we
believe adverse macroeconomic headwinds, a tighter share of IT
spending, and high debt amortization (about $8 million each
quarter) will likely lead to weak FOCF. We forecast the company
will generate negative FOCF in the next 12 months. In our view,
Cascade's high leverage (in the 7.0x-7.5x range) and rising
interest expense, along with our projections for breakeven FOCF,
limits the company's financial flexibility and leaves little room
for unanticipated operational challenges.
"The negative outlook reflects the risk that the company can face
additional business operations or greater-than-expected
macroeconomic headwinds such that it continues to underperform our
FOCF forecast leading to significant pressure on both the capital
structure and liquidity."
S&P could lower its ratings on Cascade over the next 12 months if:
-- The company's liquidity position erodes because of cash flow
deficits, and it appears unlikely that Cascade could obtain
additional financing; or
-- Revenue growth slows, likely due to slower-than-expected
bookings growth and higher costs related to new product
investments, such that EBITDA is insufficient to cover fixed
charges, resulting in EBITDA interest coverage sustained below
1.2x.
S&P could revise the outlook to stable over the next 12 months if
the company executed its growth plans and its operating performance
substantially improves such that:
-- Adjusted EBITDA interest coverage ratio is sustained above
1.5x; and
-- Cascade can produce sustainable positive FOCF, covering fixed
costs, including debt amortization.
CATHOLIC BISHOP: Moody's Affirms 'Ba1' Rating on Revenue Bond
-------------------------------------------------------------
Moody's Investors Service has affirmed Catholic Bishop of Chicago,
IL's (CBC) Ba1 revenue bond rating. Total debt of the CBC was
approximately $213 million as of June 30, 2022. The outlook remains
stable.
RATINGS RATIONALE
The affirmation of the Ba1 reflects CBC's confronting of core
social and business risks in a sector that has seen a substantial
and increasing trend of preemptive bankruptcy among dioceses
outside the state of Illinois, a pattern that shows no correlation
to soundness of financial operations, balance sheets, differences
in state laws and other nominal fundamental credit strengths. While
current projections of sexual misconduct claims appear to be
manageable, their full impact and magnitude - and their
implications for defensive filing -reflect a significant element of
unpredictability given the actions of dioceses outside the state of
Illinois. Additionally, the conclusion of the investigation by the
Illinois attorney general and recent publication of the office's
findings could contribute to growth in claims, although thus far
there has been no noticeable increase in claims.
The rating also incorporates CBC's substantial financial reserves
and other assets that continue to provide solid coverage of
liabilities. Its relatively large-scale operations and investment
portfolio provide operating flexibility and a platform to cope with
ongoing misconduct claims that are currently rising, but not
outside historical levels. Management's ongoing efforts to manage
expenses and sustain balanced core operations, which includes the
continuous review of parishes and schools across the archdiocese,
led to the resiliency of operating performance throughout the
pandemic with considerable strengthening of margins in fiscal 2022.
Management expects comparable results in fiscal 2023.
RATING OUTLOOK
The stable outlook reflects management's ongoing strengths in
managing the CBC's operations and resources, fulfilling its mission
while continuing to manage its misconduct claims on an ongoing
basis. The outlook further incorporates that the real estate market
will continue to support CBC's strategy of asset monetization and
liability management.
FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS
-- Mitigation of litigation exposure and demonstrated ability to
manage potential escalation of self-insurance claims
-- Maintenance of sufficient assets, financial and other, to
manage ongoing misconduct claims without meaningful weakening of
financial flexibility
FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS
-- Further increase in the number of claims or settlement costs of
lawsuits greater than anticipated requiring use of liquidity or
raising the risk of reorganization
LEGAL SECURITY
All debt of CBC is an unsecured general obligation. The Designated
Funds is comprised of the CBC's Pastoral Center and Catholic
Cemeteries for the primary source of repayment.
All series have three financial covenants for the Designated Funds.
There is a debt service coverage test of at least 1.2x calculated
quarterly. The second is a minimum 2.25x unrestricted cash and
investments to total indebtedness. The third is total indebtedness
of less than 45% of total indebtedness plus unrestricted cash and
investments. As of March 31, 2023, coverage was well maintained at
5.3x, 3.9x and 20.5%, respectively. All outstanding bonds have a
debt service reserve fund equal to one year of principal and
interest.
PROFILE
The Archdiocese of Chicago, the third largest in the United States,
serves more than 2.2 million Catholics in 216 parishes in Cook
County and Lake County, a geographic area of 1,411 square miles.
The Archdiocese, pastored by Cardinal Blase J. Cupich, has
approximately 15,000 employees in its systems and ministries,
including Catholic Charities, the region's largest nonprofit social
service agency. The Archdiocese also has one of the country's
largest seminaries. The Archdiocese's 154 elementary and secondary
schools comprise the largest U.S. private school system. Its
schools have received 96 U.S. Department of Education Blue Ribbon
Awards.
METHODOLOGY
The principal methodology used in these ratings was Nonprofit
Organizations (Other Than Healthcare and Higher Education)
published in May 2019.
CBS TRUCKING: Court OKs Cash Collateral Access Thru Sept 30
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
authorized CBS Trucking, Inc. to use cash collateral on an interim
basis in accordance with the budget, with a 10% variance from
August 12, 2023 through September 30, 2023.
ReadyCap Lending, LLC and Key Bank each hold a duly perfected
security interest in the Debtor's property, including the proceeds
thereof, to the extent perfected prior to the Petition Date, by
virtue of certain commercial loan agreements and related security
agreements and the filing of UCC-1 Financing Statements evidencing
such interests.
The Debtor acknowledges the Debtor's repayment obligations under
the Loan Agreements, and ReadyCap and Key Bank assert that they are
secured by, inter alia, liens and security interests in all of the
Debtor's cash and cash equivalents, by virtue of respective UCC-1
Financing Statements filed by ReadyCap and Key Bank. ReadyCap
further asserts that its Pre-Petition Lien on and security interest
in the Debtor's property and the cash collateral have been properly
perfected under applicable law and are prior in right to the
Pre-Petition Lien and security interest of Key Bank.
As of the Filing Date, the Debtor was indebted to ReadyCap in the
approximate collective amount of $1.1 million.
As of the Filing Date, the Debtor was indebted to Key Bank in the
approximate collective amount of $49,928.
The Interim Order provides that, as adequate protection for the use
of cash collateral, the ReadyCap and Key Bank are granted
replacement liens in all of the Debtor's pre-petition and
post-petition assets and proceeds.
As additional adequate protection for the Debtor's use of cash
collateral during the Second Cash Collateral Period, the Debtor
will pay to ReadyCap a monthly debt service payment in the amount
of $7,500 on or before August 18, 2023 and a monthly debt service
payment in the amount of $7,500 on or before September 8, 2023 as
agreed upon between the Debtor and ReadyCap.
As additional adequate protection for the Debtor's use of cash
collateral, the Debtor will pay to Key Bank monthly debt service
payments in the amount required under the applicable Loan
Agreement.
As additional adequate protection for the Debtor's use of cash
collateral, the Debtor will pay to Key Bank monthly debt service
payments in the amount required under the applicable Loan
Agreement.
The security interests and liens granted: (i) are and will be in
addition to all security interests, liens and rights of set-off
existing in favor of ReadyCap and Key Bank on the Filing Date; (ii)
will secure the payment of indebtedness to ReadyCap and Key Bank in
an amount equal to the aggregate Collateral Diminution resulting
from the cash collateral used or consumed by the Debtor; and (iii)
shall be deemed to be perfected without the necessity of any
further action by ReadyCap, Key Bank or the Debtor.
The Debtor's authorization to use cash collateral and the consent
of ReadyCap and Key Bank thereto, will immediately terminate
without further order on the earlier of:
(a) September 30, 2023, at 5 p.m. EST;
(b) the entry of any order granting ReadyCap and/or Key Bank, or
any party other than ReadyCap or Key Bank, relief from the
automatic stay with respect to any property of the Debtor in which
ReadyCap or Key Bank claims a lien or security interest, whether
pursuant to the Interim Order or otherwise;
(c) the entry of an order dismissing the Chapter 11 proceeding or
converting this proceeding to a case under Chapter 7 of the Code;
(d) the entry of an order confirming a plan of reorganization; or
(e) the entry of an order by which the Interim Order is reversed,
revoked, stayed, rescinded, modified or amended without the consent
of ReadyCap and Key Bank thereto.
A final hearing on the matter is set for September 12 at 9 a.m.
A copy of the order is available at https://urlcurt.com/u?l=LnJikY
from PacerMonitor.com.
About CBS Trucking, Inc.
CBS Trucking, Inc. is part of the general freight trucking
industry.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. N.Y. Case No. 23-35547) on June 30,
2023. In the petition signed by Sokol Bala, president, the Debtor
disclosed $448,619 in assets and $1.236 million in liabilities.
Judge Cecelia G. Morris oversees the case.
James J. Rufo, Esq., at Law Office of James J. Rufo, represents the
Debtor as legal counsel.
CHG HEALTHCARE: Moody's Lowers Rating on 1st Lien Loans to B2
-------------------------------------------------------------
Moody's Investors Service affirmed CHG Healthcare Services, Inc.'s
("CHG") B2 Corporate Family Rating and B2-PD Probability of Default
Rating. At the same time, Moody's downgraded CHG Healthcare
Services, Inc.'s senior secured first lien credit facility rating
to B2 from B1 and assigned B2 ratings to the refinanced portion of
the first lien credit facility. These actions follow the
announcement of a refinancing transaction that removes second lien
debt from the capital structure and replaces it with incremental
first lien debt. The outlook is stable.
CHG is proposing to raise an additional $530 million in incremental
first lien term loan (standalone tranche) pari passu with its
existing first lien term loan. The proceeds from this incremental
add-on, along with around $10 million in cash, will be used to pay
down the entire second lien term loan, accrued interest, estimated
fees and to pay $100 million in dividends. Moody's currently does
not rate the second lien term loan. Concurrently, the company is
also proposing to extend the maturity of its first lien senior
secured revolver by 1.5 years to March 30, 2028. The refinancing
will result in some cash interest savings and it will improve the
company's debt maturity profile.
The affirmation of the CFR and PDR reflects Moody's view that the
refinancing transaction will increase the financial leverage only
modestly. The company's debt/EBITDA for the 12 month period ended
March 31, 2023 was 4.7 times. Incorporating the normalization of
the company's travel nurse business in 2023 (after several highly
favorable quarters in late 2021 and in 2022), Moody's anticipates
debt/EBITDA in mid-high 5.0 times range following the close of the
refinancing transaction.
The downgrade of the ratings on the senior secured credit
facilities reflects the elimination of a layer of loss absorption
below the senior secured first lien credit facilities, resulting
from the repayment of the entire second lien term loan. The first
lien debt will represent the preponderance of the company's
obligations following the proposed transaction.
Affirmations:
Issuer: CHG Healthcare Services, Inc.
Corporate Family Rating, Affirmed B2
Probability of Default Rating, Affirmed B2-PD
Assignments:
Issuer: CHG Healthcare Services, Inc.
Proposed Senior Secured 1st Lien Revolving Credit Facility,
Assigned B2
Proposed Senior Secured 1st Lien Term Loan, Assigned B2
Downgrades:
Issuer: CHG Healthcare Services, Inc.
Senior Secured 1st Lien Revolving Credit Facility, Downgraded to
B2 from B1
Senior Secured 1st Lien Term Loan, Downgraded to B2 from B1
Outlook Actions:
Issuer: CHG Healthcare Services, Inc.
Outlook, Remains Stable
RATINGS RATIONALE
CHG's B2 CFR reflects its moderately high leverage and niche focus
in the locum tenens healthcare staffing business. Moody's expects
that the company's debt/EBITDA will remain in mid-to-high 5.0 times
range over the next 12-18 months. The CFR is also constrained by
the company's financial policy of paying out substantial
shareholder dividends, including at times funded by incremental
debt.
The company's ratings benefit from good scale and leading market
position in the fragmented locum tenens market, positive long-term
fundamental demand trends in locum tenens and a demonstrated track
record of good cash flow and earnings growth. CHG further benefits
from diversification of physician specialty and minimal
concentration across customers.
Moody's views CHG's liquidity as very good. Liquidity is supported
by an estimated ~$88 million of cash on hand and -$110 million
availability under a $150 million revolver at the end of June 2023.
Moody's expects CHG to generate $160-$180 million in cash flow from
operations in the next 12 months, which will easily cover $60-$70
million in capex and approximately $20 million in mandatory debt
amortization.
CHG's B2 rating on the senior secured first lien facility, at same
level as B2 CFR, reflects the elimination of a layer of loss
absorption below the senior secured first lien credit facilities,
resulting from the repayment of the entire $430 million second lien
term loan in 2023.
Among ESG considerations, social risk exposures include scarcity of
qualified human capital, potential liabilities related to patient
care and demographic and societal trends. Although CHG does not
face direct reimbursement risk, pricing pressure placed on its
clients as a result of regulatory changes could partially flow
through to the company as clients look to reduce costs. This could
also lead to weakened volume growth as providers may become more
prudent in their use of locum tenens. Governance risk
considerations involve the company's aggressive financial policy
and risk management and concentrated decision making under private
equity ownership.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Moody's could downgrade the ratings if CHG's financial policy
becomes more aggressive, liquidity deteriorates, or demand for
CHG's services/supply of locum tenens physicians declines on a
sustained basis. While the historical level of dividend payout is
already incorporated in Moody's analysis, an outsized dividend
payout could pressure the ratings. Quantitatively, if debt/EBITDA
is sustained above 6.0 times, the rating could be downgraded.
Moody's could upgrade the rating if CHG reduces its leverage on a
sustained basis such that total debt/EBITDA is maintained below 5.0
times. An upgrade would also be supported by strong organic
earnings growth and a good liquidity profile with growing levels of
free cash flow.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
CHG Healthcare Services, Inc. is a provider of temporary healthcare
staffing services to hospitals, physician practices and other
healthcare settings in the United States. CHG Healthcare Services,
Inc. derives the majority of its revenue from temporary physician
staffing but also provides travel nurse, allied health, and
permanent placement services. CHG Healthcare Services, Inc.
reported $2.8 billion in revenues for the twelve months ended March
31, 2023.
CHINA EVERGRANDE: Chapter 15 Case Summary
-----------------------------------------
Three affiliates that concurrently filed voluntary petitions for
relief under Chapter 15 of the Bankruptcy Code:
Debtor Case No.
------ --------
China Evergrande Group (Lead Case) 23-11332
Ugland House
309
Grand Cayman, KY1-1104
Cayman Islands
Tianji Holdings Limited 23-11333
Scenery Journey Limited 23-11334
Vistra Corporate Services Centre
Wickhams Cay II
Road Toan, Tortola
British Virgin Islands
Business Description: China Evergrande Group is a Chinese property
developer.
Chapter 15 Petition Date: August 17, 2023
Court: United States Bankruptcy Court
Southern District of New York
Judge: Hon. Michael E. Wiles
Foreign Proceedings: Scheme proceedings under sections 670,
673, and 674 of the Hong Kong Companies
Ordinance
- and -
Scheme proceedings under section 179A of
the BVI Business Companies Act, 2004
Foreign Representatives: Jimmy Fong
15th Floor, YF Life Centre
38 Gloucester Road
Wanchai
Hong Kong
- and -
Anna Silver
FFP (BVI) Limited
2nd Floor Water's Edge Building
Wickham's Cay II
Road Town, Tortola
British Virgin Islands
Foreign
Representatives'
Counsel: Anthony Grossi, Esq.
SIDLEY AUSTIN LLP
787 Seventh Avenue
New York NY 10019
Tel: (212) 839-5599
Email: agrossi@sidley.com
Estimated Assets: Unknown
Estimated Debt: Unknown
Full-text copies of two of the Debtors' Chapter 15 petitions are
available for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/2WHAMHY/China_Evergrande_Group_and_Jimmy__nysbke-23-11332__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/BVVLLGY/Scenery_Journey_Limited_and_Anna__nysbke-23-11334__0001.0.pdf?mcid=tGE4TAMA
CLEVELAND-CLIFFS INC: S&P Places 'BB-' ICR on Watch Developing
--------------------------------------------------------------
S&P Global Ratings placed its 'BB-' issuer credit rating on
CreditWatch with developing implications. At the same time, S&P
also placed all issue-level ratings on CreditWatch with developing
implications. This includes the 'BB-' issue-level rating on the
senior unsecured debt, 'BB+' issue-level rating on the senior
secured debt, and 'B' issue-level rating on the subordinate debt.
S&P expects to resolve the CreditWatch placement only once the
credit trajectory clears up, which will likely require a definitive
path on any potential transaction and associated debt plans.
S&P said, "CreditWatch with developing implications reflects we
could raise, lower, or affirm the ratings on Cliffs. Cliffs'
publicly announced offer to acquire all the shares of USS could
significantly affect the combined entity's competitive position by
consolidating the production of iron and blast-furnace steel in the
U.S. Midwest, but it also could add debt to two companies with a
track record of volatile cash flows and ratios and long-standing
elevated credit risk. USS has rejected the offer by Cliffs, and the
former initiated a strategic review process to evaluate
alternatives that could include selling the entire company or some
of its producing assets after receiving multiple unsolicited
offers.
"CreditWatch with developing implications means we could affirm,
lower, or raise our ratings on Cliffs, depending on an unclear set
of business and financial outcomes. A combined Cliffs and USS would
exhibit improved domestic market position and scale, including
economies and synergies from complementary and geographically
overlapping assets in the U.S. However, such an outcome may also
result in higher-than-expected debt leverage, which could
deteriorate credit quality. We expect to resolve the CreditWatch in
the coming months as the various possible outcomes are clarified
and we reassess their impact on the ratings."
CRESTWOOD EQUITY: Moody's Puts 'Ba2' CFR Under Review for Upgrade
-----------------------------------------------------------------
Moody's Investors Service placed Crestwood Equity Partners LP's
(CEQP) and Crestwood Midstream Partners LP's (CMLP) ratings on
review for upgrade, including CEQP's Ba2 Corporate Family Rating
and CMLP's Ba3 senior unsecured notes ratings.
This follows the announcement by CEQP and Energy Transfer LP
(Energy Transfer, Baa3 positive) that Energy Transfer will acquire
CEQP.[1]
The proposed transaction is credit enhancing for CEQP and CMLP,
given Energy Transfer's stronger credit profile. The transaction is
expected to close in the fourth quarter of 2023, subject to the
approval of CEQP's unitholders, regulatory approvals, and other
customary closing conditions.
On Review for Upgrade:
Issuer: Crestwood Equity Partners LP
Corporate Family Rating, Placed on Review for Upgrade, currently
Ba2
Probability of Default Rating, Placed on Review for Upgrade,
currently Ba2-PD
Pref. Stock Non-cumulative, Placed on Review for Upgrade,
currently B1
Issuer: Crestwood Midstream Partners LP
Senior Unsecured Regular Bond/Debenture, Placed on Review for
Upgrade, currently Ba3
Outlook Actions:
Issuer: Crestwood Equity Partners LP
Outlook, Changed To Rating Under Review From Stable
Issuer: Crestwood Midstream Partners LP
Outlook, Changed To Rating Under Review From Stable
RATINGS RATIONALE / FACTORS THAT COULD LEAD TO AN UPGRADE OR
DOWNGRADE OF THE RATINGS
Both CEQP's and CMLP's ratings were placed under review for upgrade
based on the announced acquisition by Energy Transfer, which has a
stronger credit profile.
Upon closing of the transaction, if Energy Transfer legally assumes
or guarantees CMLP's notes, making them pari passu with Energy
Transfer's existing notes, then the ratings on CMLP's notes would
likely be upgraded to Energy Transfer's senior unsecured rating
level depending on the pro forma capital structure. Similarly, if
Energy Transfer legally assumes or guarantees CEQP's preferred
securities then those instruments would likely be upgraded to the
same rating as Energy Transfer's preferred securities. If CEQP and
CMLP were to become unguaranteed subsidiaries of Energy Transfer
following the acquisition and continue to provide separate audited
financial statements, then the notes and preferred equity ratings
could be upgraded based on the level of anticipated parental
support and any improvements in its stand-alone credit profile.
CEQP, headquartered in Houston, Texas, is a publicly-traded master
limited partnership (MLP) that owns and operates assets within the
midstream sector. Crestwood Midstream Partners LP is a wholly-owned
subsidiary of CEQP.
The principal methodology used in these ratings was Midstream
Energy published in February 2022.
D&D BAKER: Unsecureds Will Get 15% of Claims over 5 Years
---------------------------------------------------------
D&D Baker Enterprise LLC filed with the U.S. Bankruptcy Court for
the Southern District of Indiana a Plan of Reorganization for Small
Business.
The Debtor is a single member LLC which operates a commercial
cleaning business in the Indianapolis, Indiana area. The single
member of the LLC is named Demetrius Baker.
Debtor has contracts with entities to perform commercial cleaning
services. In 2022, Debtor lost 2 major contracts. Debtor lost about
$30,000 of monthly revenue as a result of losing these contracts.
Debtor obtained merchant cash advance loans at the time so that he
could keep his employees employed.
The payments on the merchant cash advance loans were not
sustainable. Debtor has reorganized his business so that now he can
pay his business expenses. He can also make payments to pay off the
loan of Kapitus Servicing, Inc. Kapitus has agreed to receive
payments in the amount of $1,000 per month for 5 years.
The claim of Kapitus will be paid off through the duration of the
plan. This is the agreement that Kapitus has agreed to with the
debtor. Payments to the Small Business Administration ("SBA") will
continue at the regular monthly amount of $268.00. The SBA contract
will continue after the duration of the plan. This is the agreement
that the SBA has with the debtor.
The Plan Proponent's financial projections show that the Debtor
will have projected disposable income of over $5,000 per month.
The final Plan payment is expected to be paid in August of 2028.
This is a 5-year plan. The debtor is already making payments to
Kapitus and to the SBA. Upon confirmation, debtor will start making
payments to On Deck Capital, Inc. and to JP Morgan Chase.
This Plan of Reorganization proposes to pay creditors of D&D Baker
Enterprise LLC from future earnings.
Non-priority unsecured creditors holding allowed claims will
receive distributions, which the proponent of this Plan has valued
at approximately 15 cents on the dollar, or 15%. The exception is A
and B Tax, which will receive 100% of its scheduled amount of $435.
This Plan also provides for the payment of administrative and
priority claims.
Class 3 (a) consists of Non-priority unsecured claims of JPMorgan
Chase and On Deck Capital, Inc. JPMorgan Chase filed a claim of
$6,948.54. JPMorgan Chase will receive 15% of its claim amount,
which is $1,042.28. Debtor will pay $18 per month over the term of
the plan to pay the $1,042.28.
On Deck Capital, Inc. filed a claim for $62,094.94. On Deck
Capital, Inc. will receive 15% of its claim amount, which is
$9,314.24. Debtor will pay $156 per month over the term of the plan
to pay the $9,314.24. Class 3 (a) is impaired by this Plan.
Class 3 (b) consists of Non-priority unsecured claim of A and B
Tax. A and B Tax will be paid its full scheduled amount of $435
upon confirmation of the plan. Class 3(b) is unimpaired by this
Plan.
All existing Equity Interest is maintained.
The Plan will be funded by the future income of the Debtor. The
debtor has budgeted payments to be made to its secured creditors,
administrative expenses and unsecured creditors.
A full-text copy of the Plan of Reorganization dated August 14,
2023 is available at https://urlcurt.com/u?l=LmJiUo from
PacerMonitor.com at no charge.
Attorney for Debtor:
Preeti Gupta, Esq.
2680 East Main Street Suite 322
Plainfield, IN 46168
(317) 900-9737 phone
(888) 261-6090 fax
E-mail: nita07@att.net
About D&D Baker Enterprises LLC
D&D Baker Enterprises LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Ind. Case No. 23-00563) on
February 20, 2023. In the petition signed by Demetrius Baker,
member, the Debtor disclosed up to $50,000 in assets and up to
$500,000 in liabilities.
Judge Jeffrey J. Graham oversees the case.
Preeti Gupta, Esq., represents the Debtor as legal counsel.
DEVILLE CORP: Wins Interim Cash Collateral Access
-------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida, Tampa
Division, authorized Deville Corp. to use cash collateral on an
interim basis, in accordance with the budget, with a 10% variance.
The Debtor is permitted to use cash collateral to pay:
(a) amounts expressly authorized by the Court, including
payments to the US Trustee for quarterly fees;
(b) current and necessary expenses set forth in the budget,
plus an amount not to exceed 10% for each line item; and
(c) additional amounts as may be expressly approved in writing
by FLA-Nash, LLC and H.I. Resorts Nashville, LLC, as
successor-in-interest to Savannah Capital, LLC.
FLA-Nash, LLC has agreed to extend the maturity date of its loan
through October 31, 2023. Consistent with the budget, the Debtor
will continue to pay FLA-Nash regular mortgage payments. The Debtor
and FLA-Nash are authorized, but not required, to enter into
reasonable and customary documents to document the extension
consistent with the Order.
Each creditor with a security interest in the 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.
A continued hearing on the matter is set for October 19, 2023, at 3
p.m.
A copy of the order and the Debtor's budget is available at
https://urlcurt.com/u?l=jWIFGT from PacerMonitor.com.
The Debtor projects total operating expenses, on a monthly basis,
as follows:
$4,963 for August 2023;
$4,9623 for September 2023; and
$5,213 for October 2023.
About Deville Corp.
Deville Corp. is a Single Asset Real Estate (as defined in 11
U.S.C. Sec. 101(51B)).
Deville Corp. filed a petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. M.D. Fla. Case No. 22-04930) on Dec. 14,
2022. In the petition filed by Edgar L.T. Gay, as president and
director, the Debtor reported assets between $10 million and $50
million and liabilities between $1 million and $10 million.
Judge Catherine Peek McEwen oversees the case.
The Debtor is represented by Daniel R. Fogarty, Esq. at Stichter,
Riedel, Blain & Postler, P.A.
DIOCESE OF ALBANY: Committee Taps Dundon as Financial Advisor
-------------------------------------------------------------
The official committee of unsecured creditors of The Roman Catholic
Diocese of Albany, New York received approval from the U.S.
Bankruptcy Court for the Northern District of New York to employ
Dundon Advisors, LLC.
The committee requires a financial advisor to:
a. assist in investigating the assets, liabilities, and
financial condition of the Debtor or the Debtor's operations,
including an independent analysis of any alleged donor restrictions
on the Debtor's assets;
b. assist the committee in the review of financial-related
disclosures required by the court and the Bankruptcy Code,
including schedules of assets and liabilities, statement of
financial affairs, and monthly operating reports;
c. analyze the Debtor's accounting reports and financial
statements;
d. assist the committee in analyzing the scope of economic
damages and other financial claims of the Child Victims Act
claimants;
e. review transfers of the Debtor's assets and potential
recovery to the estate;
f. assist the committee in evaluating the Debtor's ownership
interests of property alleged to be held in trust by the Debtor for
the benefit of third parties or property alleged to be owned by
non-debtor entities;
g. assist the committee in reviewing and evaluating any
proposed asset sales or other asset dispositions;
h. assist the committee in evaluating the Debtor's cash
management system, including unrestricted and restricted funds,
deposit and loan programs, and pooled income or investment funds;
i. assist the committee in the review of financial information
that the Debtor may distribute to the committees, and analyze
proposed transactions for which court approval is sought;
j. assist in the review or preparation of information and
analyses necessary for the confirmation of a Chapter 11 plan, or
for the objection to any plan filed in the Debtor's Chapter 11
case, which the committee opposes;
k. assist the committee with the evaluation and analysis of
claims, and in any litigation matters, including, but not limited
to, avoidance actions for fraudulent conveyances and preferential
transfers, and declaratory relief actions concerning the property
of the Debtor's estate;
l. analyze the flow of funds in and out of accounts the Debtor
contends contain assets held in trust for others, and determine
whether the funds were commingled with non-trust funds and lost
their character as trust funds under applicable legal and
accounting principles; and
m. any other financial-related service the committee may
require.
The firm will be paid at these rates:
Principal $712 per hour
Managing Director and Senior Adviser $632 per hour
Senior Director $560 per hour
Director $520 per hour
Associate Director $440 per hour
Senior Associate $380 per hour
Associate $280 per hour
Heather Barlow, managing director at Dundon Advisors, disclosed in
a court filing that her firm is a "disinterested person" pursuant
to Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Heather Barlow
Dundon Advisors LLC
319 Belvedere Rd Ste 6
West Palm Beach, FL 33405
Tel: (561) 249-2868/(917) 306-4496
Email: hb@dundon.com
About The Roman Catholic Diocese of Albany
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 the 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.
The unsecured creditors' committee tapped Lemery Greisler, LLC as
legal counsel; Dundon Advisors, LLC as financial advisor; and
OneDigital Investment Advisors, LLC as special investment
consultant.
Stinson, LLP and OneDigital Investment Advisors serve as the tort
committee's legal counsel and special investment consultant,
respectively.
DYNASTY ACQUISITION: Moody's Rates New Senior Secured Loans 'B3'
----------------------------------------------------------------
Moody's Investors Service assigned a B3 rating to Dynasty
Acquisition Co., Inc. ("StandardAero") new senior secured credit
facility, comprised of a $150 million revolver and a $2.6 billion
term loan. All other ratings, including the B3 corporate family
rating and the B3-PD Probability of Default Rating, are unchanged.
Proceeds from the facility will be used to refinance existing term
loan indebtedness. This is a leverage neutral transaction. Ratings
on the existing senior secured credit facility will be withdrawn
upon close. The outlook is stable.
Assignments:
Issuer: Dynasty Acquisition Co., Inc.
Senior Secured 1st Lien Term Loan B2, Assigned B3
Senior Secured 1st Lien Revolving Credit Facility, Assigned B3
RATINGS RATIONALE
The B3 CFR reflects high financial leverage and Moody's
expectations of weak free cash generation during 2023.
Debt-to-EBITDA of around 7x as of March 2023 is high and limits
near-term financial flexibility. That said, the on-going recovery
in commercial aerospace maintenance, repair and overhaul (MRO)
markets will continue over the next few years. Moody's expects this
to translate to earnings growth and higher cash generation and an
across-the-board improvement in credit metrics.
The rating also considers the diversity and scale of StandardAero's
engine MRO network which operates across a broad set of end markets
and engine platforms. StandardAero benefits from the longer-term
revenue visibility that exists in the aircraft engine MRO segment
as well as its position as a servicer of key engine platforms in
commercial, military, and business aviation markets. As passenger
aircraft flight activity gradually return to normal levels, so too
should StandardAero's profitability.
The stable outlook reflects Moody's expectations of an on-going
recovery in demand for commercial engine MRO work which will
translate to earnings growth and an improvement in credit metrics.
Moody's views StandardAero's liquidity to be adequate. The company
has two revolving credit facilities, including a $400 million ABL
due May 2028 and a $150 million revolver also due May 2028. As of
March 2023, $130 million was drawn under the ABL. Moody's expects
free cash flow generated in the back half of 2023 to be directed
towards paying down ABL borrowings. Maintenance covenants only
apply when borrowing availability thresholds under the revolvers
are crossed and test activation seems unlikely in the near-term.
Moody's anticipates negative free cash flow during 2023 but
improved cash generation during 2024 with FCF-to-debt in the low
single-digits.
The B3 rating on the first lien credit facility is the same as the
CFR, reflecting the presence of the effectively senior asset-based
revolving credit facility and the effectively junior unsecured
notes.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings could be upgraded if debt-to-EBITDA will be sustained below
6x with free cash flow-to-debt approaching the mid-single digits.
Ratings could be downgraded due to an inability to grow earnings
such that debt-to-EBITDA remains above 8x. Sustained negative free
cash flow or weakening liquidity could also result in a downgrade.
Dynasty Acquisition Co., Inc. is the acquisition vehicle through
which entities of The Carlyle Group acquired StandardAero Aviation
Holdings, Inc. in 2019. StandardAero, headquartered in Scottsdale,
Arizona, is a leading provider of aircraft engine MRO and aircraft
completion and modification services to the commercial, business,
military and general aviation industries. Reported revenue for the
twelve months ended March 2023 was almost $4.3 billion.
The principal methodology used in these ratings was Aerospace and
Defense published in October 2021.
EAGLE MECHANICAL: Seeks to Extend Plan Exclusivity to November 27
-----------------------------------------------------------------
Eagle Mechanical Inc. asks the U.S. Bankruptcy Court for the
Southern District of Indiana to extend its exclusivity period to
file a chapter 11 plan to November 27, 2023.
The Debtor explained that its circumstances have changed shortly
after the petition date. The Debtor stated that its operations
ceased and it has been working with its primary secured creditor
to liquidate its collateral. The Debtor has also made demand for
payment on multiple parties that owe it money in an effort to
recover funds. The Debtor also claims that it requirs additional
time to resolve the adversary proceedings that it has filed, and
may be filing, in an effort to recover preferential transfers.
The Debtor further explained that, based on its operations having
ceased, it now anticipates a plan of liquidation to be filed and
needs additional time to evaluate the terms of such a plan.
Eagle Mechanical Inc. is represented by:
Weston E. Overturf, Esq.
Anthony T. Carreri, Esq.
KROGER GARDIS & REGAS LLP
111 Monument Circle Suite 555
Indianapolis, IN 46260
Tel: (317) 777-7443
Email: woverturf@kgrlaw.com
About Eagle Mechanical Inc.
Eagle Mechanical Inc. sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Ind. Case No. 22-00291) on
January 27, 2023. In the petition signed by Rogelio Mancilla Jr.,
chief executive officer, the Debtor disclosed $7,751,209 in
assets and $9,136,761 in liabilities.
Judge James M. Carr oversees the case.
Weston E. Overturf, Esq., at Kroger Gardis & Regas, LLP, is the
Debtor's legal counsel.
EARTHSTONE ENERGY: S&P Raises ICR to 'B+', Off Watch Positive
-------------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on U.S.-based
oil and gas exploration and production (E&P) company Earthstone
Energy Inc. to 'B+' from 'B' and removed it from CreditWatch, where
S&P placed it with positive implications on June 27, 2023.
S&P also raised its issue-level rating to 'BB-' from 'B+' with a
recovery rating of '2', indicating its expectation of substantial
recovery in the event of default.
The outlook is stable, reflecting S&P's expectation that credit
metrics will continue supporting the rating as the company uses
cash flow to reduce outstanding revolver borrowings.
Earthstone closed on its acquisition of Novo in the third quarter.
Pro forma for the acquisition, Earthstone's production and reserves
will be more in line with peers in the 'B+' category as it now
holds about 223,000 net acres in the Permian Basin. Earthstone
expects production to exceed 110,000 barrels of oil equivalent per
day (boe/d) in 2023, increasing to over 130,000 boe/d in the fourth
quarter of 2023 (approximately 41% oil and 69% liquids). Pro forma
proved reserves are about 460 million (mm) boe, of which 76% are
classified as proved developed producing. Earthstone expects to
operate five rigs in 2023--one in the Midland Basin and four in the
Delaware Basin, including one rig on the newly acquired Novo
assets. The acquisition increases Earthstone's gross locations by
24% to 1,020 and increases its inventory life to 13 years under a
continuous five-rig program.
Earthstone has successfully integrated numerous acquisitions over
the past two years.
The company has completed numerous acquisitions since the beginning
of 2021, significantly increasing its proved reserves and
production levels in the Permian Basin. S&P expects Earthstone will
successfully integrate the Novo assets into its portfolio given its
previous track record, and the assets' proximity to and similar
geology of its existing operations.
S&P assesses Earthstone's financial risk as aggressive based on its
private-equity ownership.
Pro forma for the Novo acquisition and Warburg Pincus LLC's (not
rated) sale of its holdings, EnCap Investments L.P. and Post Oak
Energy Capital L.P. (not rated) will continue to own a combined 48%
of the company. S&P said, "However, we view seven members of the
11-member board of directors as independent, and the company is
public. Additionally, the company has historically maintained low
leverage, and we do not expect leverage to exceed 1.5x in the near
term despite the cash-funded acquisition. We do not anticipate it
will execute any dividends or share repurchases within the next 12
months."
The stable outlook reflects our expectation that Earthstone will
maintain average funds from operations (FFO) to debt of more than
60% over the next two years while using its free operating cash
flow (FOCF) to further reduce the outstanding borrowings under its
revolving credit facility.
S&P could lower its rating on Earthstone if:
-- Its liquidity significantly deteriorates; or
-- Its FFO to debt declines and remains below 45%, which would
likely occur if it faces weaker-than-anticipated commodity prices
and doesn't implement an offsetting reduction in its capital
spending plans.
S&P said, "We could upgrade the company if it increases its scale
to levels more comparable with higher-rated peers while maintaining
FFO to debt comfortably above 45%, demonstrating prudent financial
policies, and continuing to reduce outstanding borrowings on its
credit facility. We could also raise the rating if we no longer
view the company as controlled by a financial sponsor."
ENC PARENT: S&P Affirms 'B-' Issuer Credit Rating, Outlook Neg.
---------------------------------------------------------------
S&P Global Ratings affirmed its 'B-' issuer credit rating on ENC
Parent Corp. The outlook is negative.
S&P said, "We assess liquidity as adequate given minimal debt
maturities in the near term and a low capital spending
requirement.
"We also affirmed our 'B-' issue-level rating and '3' recovery
rating (rounded estimate: 50%) on the company's first-lien debt, as
well as the 'CCC' issue-level rating and '6' recovery rating
(rounded estimate: 0%) on the second-lien debt.
"The negative outlook reflects our expectations that ENC's credit
ratios will be weak for the rating this year and in 2024 due to the
negative impact of higher interest rates on the company's
floating-rate debt, combined with lower demand for freight
transportation amid weaker macroeconomic growth.
"We expect ENC's credit metrics will remain weak for the rating in
2023 and 2024. We believe higher interest rates will constrain the
company's funds from operations (FFO; which is calculated as EBITDA
less cash interest and cash taxes). We forecast interest expense
will increase to around $68 million in 2023 and $63 million in 2024
from about $28 million and $52 million in 2021 and 2022,
respectively. Additionally, we forecast credit metrics and cash
flow will be pressured by considerably weaker demand and pricing
for freight transportation in the same period. In the first half of
2023, ENC's revenues declined about 27% year-over-year mainly due
to the combination of lower consumer spending and falling import
volumes, while the industry goes through a destocking period to
some degree. Consequently, we expect FFO to debt to decline to the
low-single-digits percent area in 2023 and 2024, from around 9% in
2022. We also forecast debt to EBITDA will weaken to the high-6x
area in 2023 and to the low-6x area in 2024, from 4.9x in 2022.
However, we view leverage as somewhat less reflective of financial
risk for ENC since it excludes the effect of interest expense.
"We expect ENC's operating performance will remain pressured by low
demand and pricing for freight transportation. We expect the
company to continue to face significant demand uncertainty in the
near term due to weak consumer spending coupled with high
inventories levels that could continue to limit imports, and
consequently ENC's operating performance. Furthermore, the
combination of weak consumer demand and high inflation limits the
pace of industry destocking, which has been one of the reasons for
softness in the first six months of 2023. S&P Global economists
forecast lower U.S. economic growth in 2023 and 2024 as inflation
and higher interest rates take hold. Spot market prices for both
truckload capacity and intermodal drayage have declined
significantly in the last 12 months. We expect lower pricing
combined with declining volumes to pressure revenues in the second
half of 2023. Therefore, we forecast revenue to decrease to about
22%-23% in 2023 before increasing to 2.6% in 2024, as the industry
recovers to some degree from the downturn."
As a truck broker, the company buys truck capacity on the spot
market and then bills its customers for the transportation costs
plus a premium. A portion of shipments are priced under contracted
rates, so this dynamic leads to gross margin compression during
periods of rising prices when ENC must pay more for the
transportation than the contracted prices it has with its
customers. On the contrary, during periods of decreasing spot
market prices, the company's gross margins benefit from the price
difference. Thus, S&P expects EBITDA margins will remain around 5%
in 2023 and 2024; however, S&P believes EBITDA will decline in 2023
on an absolute basis given the lower revenue expectations in our
forecast.
S&P said, "We continue to assess ENC's liquidity as adequate
despite our expectations for weaker FFO in 2023 and 2024. The
company's liquidity position is supported by its cash balance,
availability under its revolving credit facility, and minimal
near-term debt maturities with a weighted average maturity of 5.9
years. The $450 million first-lien term loan matures in 2028, and
the second-lien term loan matures in 2029. Additionally, ENC has
low capital spending requirements given the asset-light nature of
its business. In terms of working capital, the company benefits
from the countercyclical nature of its freight brokerage business
during periods of declining prices since its accounts payable to
truck operators decline. However, weaker-than-expected volumes or
faster-than-expected working capital outflows both pose risks to
the company's cash flow and liquidity.
"The negative outlook reflects our expectation that ENC's credit
metrics and cash flow will be somewhat weaker due to the negative
impact of higher interest rates on the company's floating rate
debt. We also believe the company faces lower demand for freight
transportation amid weaker macroeconomic conditions. As a result,
we expect FFO to debt to decline to the low-single-digit percent
area in 2023 and 2024.
"We could lower our ratings on ENC over the next 12 months if the
company's liquidity becomes constrained or we believe the company's
capital structure will not be sustainable over the longer term."
This could occur if:
-- The company's operating performance deteriorates more than we
currently expect due to a significant drop in demand for trucking
and intermodal transportation;
-- Higher-than-expected working capital outflows coupled with
weaker operating performance reduce the company's cash flow and
pressure liquidity; or
-- The company pursues large debt-financed acquisitions.
S&P could revise its outlook on ENC to stable over the next 12
months if S&P expects the company's FFO to debt will remain at
least in the mid-single-digit percent area on a sustained basis.
This could occur if:
-- Intermodal and truckload volumes improve faster than S&P
currently expects; or
-- Better-than-expected operating performance results in higher
FFO, offsetting increased interest expense.
ENCINO TOWERS: Seeks Cash Collateral Access
-------------------------------------------
Encino Towers LLC asks the U.S. Bankruptcy Court for the Central
District of California, San Fernando Valley Division, for authority
to use cash collateral for the period from August 1 to October 31,
2023.
The Debtor requires the use of cash collateral to pay ordinary and
necessary operating expenses in accordance with the budget, with a
15% variance.
The Debtor was formed on April 8, 2021, for the sole purpose of
acquiring an office building located at 17835 Ventura Blvd.,
Encino, CA 91316. The Debtor made an offer of $12,990,000 for the
Property, which was accepted on June 25, 2020.
The Debtor filed the Chapter 11 case on July 10, 2023, to prevent
the foreclosure sale of its real property so that it can maximize
the value of this asset by marketing it for sale subject to
overbids. K3B Enterprises LLC - which owns the family residence
located on Sunset Blvd. - filed its own Chapter 11 petition on the
same date.
The first deed of trust is held by Sunwest Bank, allegedly secured
on the Property. The Debtor obtained a promissory note of $6.869
million with a variable interest rate (Loan No. 6001). The First
Deed of Trust was due and payable on September 8, 2031. The First
Deed of Trust was recorded on August 31, 2021.
The principal balance is approximately $5.4 million as of the
petition date.
The second deed of trust is held by Sunwest Bank, allegedly secured
on the Property. The Debtor obtained a promissory note of $4.939
million with a variable interest rate (Loan No. 7001). The Second
Deed of Trust was due and payable on December 1, 2021. The Second
Deed of Trust was recorded on August 31, 2021.
The principal balance is approximately $4.939 million as of the
petition date.
The Debtor believes that the secured creditors are adequately
protected by the Debtor's assets. Notwithstanding, the Debtor
proposes adequate protection payments to Sunwest Bank (holding the
first deed of trust) of $40,340 per month (the contractual
payments).
The Debtor will also give to the alleged secured creditors a
replacement lien on the revenue generated postpetition from the
Property to the extent that the creditors' cash collateral is
actually used.
A hearing on the matter is set for September 7, 2023 at 1:30 p.m.
A copy of the Debtor's motion and budget is available at
https://urlcurt.com/u?l=qgvFuy from PacerMonitor.com.
The Debtor projects total expenses, on a monthly basis, as
follows:
$59,129 for August 2023;
$57,552 for September 2023; and
$57,552 for October 2023.
About Encino Towers LLC
Encino Towers LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 23-10965) on July 10,
2023. In the petition signed by Kaysan Ghasseminejad, managing
member, the Debtor disclosed up to $50 million in both assets and
liabilities.
Matthew D. Resnik, Esq., at RHM Law, LLP, represents the Debtor as
legal counsel.
ENTEC SERVICES: Creditors to Get Proceeds From Liquidation
----------------------------------------------------------
EnTec Services, LLC, filed with the U.S. Bankruptcy Court for the
Southern District of Mississippi a Subchapter V Plan of Liquidation
dated August 14, 2023.
The Debtor was involved in a significant amount of litigation,
prior to the filing of the Petition.
The Debtor owns Chapter 5 avoidance causes of action as well and it
expressly reserves payments made in the 90 days before filing,
including Claims, to clawback those payments. Specifically, a
number of open account Creditors attempted to file
materialman's/construction/related liens within the 90 days prior
to the filing of the Petition in this case, thereby allegedly (or
possibly) elevating themselves from general, open account Unsecured
Creditors to Secured Creditors.
Those efforts are preferential transfers and/or fraudulent
conveyances, thereby rendering all efforts at those lien attempts
in the 90 days (for preferences) and the 2 years (for fraudulent
conveyances) voidable and of no effect. The Debtor also reserves
all Claims and causes of action described in its Schedules,
including, but not limited to, Claims against Greg Pollard and
Kenny Goh for breach of contract, breach of fiduciary duty,
negligence and waste.
Debtor also reserves all affirmative defenses/counterclaims as to
all of the litigation filed against it in North Dakota. Debtor (and
Bison Land & Minerals, LLC) also reserves all rights for the return
of a rig, and resultant damages, wrongfully taken from the Debtor
by Hunter Drilling Services, Inc. (and perhaps others). As a
result, the Debtor has no Secured Creditors and it will pursue
avoidance Claims and causes of action post confirmation.
The Plan in this case is largely one of liquidation of assets,
assumption and assignment of executory contracts, drilling permits
and the like. Since liquidation of all of the assets is the
ultimate goal, feasibility is not the issue that it would be if
this were continuing to be an operating company. Since it will no
longer be operating, feasibility is accomplished easily by the
liquidation of assets, all of which will be approved by the Court
after notice and a hearing.
Class 1 consists of the administrative expenses and Claims of
professionals and of the United States Trustee under Section 503(b)
of the Bankruptcy Code and all fees and charges assessed against
the Debtor under Title 28 of the United States Code. The
compensation of professionals, such as attorneys and accountants,
is subject to approval by the Court. All Class 1 expenses and
Claims for fees will be paid as provided for in future Court
orders, or as may be agreed upon.
Class 2 consists of Priority Claims Priority Claims, if any, will
be paid within 60 months from the date of the filing of the
Petition herein, together with statutory interest thereon.
Class 3 consists of General, Unsecured Creditors. General,
Unsecured Creditors will receive the Debtor's projected disposable
income, and/or the actual income it receives, net of administrative
and priority Claims, and costs of auction, upon liquidation.
Equity security interests of the Debtor will be cancelled upon the
Effective Date.
The Plan, and the Debtor's wind down and dissolution, will be
funded through liquidation of its assets.
A full-text copy of the Subchapter V Plan dated August 14, 2023 is
available at https://urlcurt.com/u?l=kuMpHh from PacerMonitor.com
at no charge.
Counsel to the Debtor:
Craig M. Geno, Esq.
Law Offices of Craig M. Geno, PLLC
587 Highland Colony Parkway
Ridgeland, MS 39157
Tel: (601) 427-0048
Email: cmgeno@cmgenolaw.com
About Entec Services
Entec Services, LLC, filed a Chapter 11 bankruptcy petition (Bankr.
S.D. Miss. Case No. 23-01141) on May 15, 2023. The Debtor hires the
Law Offices of Craig M. Geno, PLLC as counsel.
ENVISION HEALTHCARE: $300M Bank Debt Trades at 16% Above Par
------------------------------------------------------------
Participations in a syndicated loan under which Envision Healthcare
Corp is a borrower were trading in the secondary market around
115.5 cents-on-the-dollar during the week ended Friday, August 18,
2023, according to Bloomberg's Evaluated Pricing service data.
The $300 million facility is a FIFO loan from KKR. It is scheduled
to mature on March 31, 2027. The amount is fully drawn and
outstanding.
KKR is expected to retain ownership of Envision after paying
unsecured creditors a 1% dividend. The FIFO loan has been trading
above-par since early-June.
As reported by the Troubled Company Reporter, under Envision
Healthcare's amended Chapter 11 plan, holders of EVPS First-Out
Term Loan Claims will recoup 100% of their Allowed Claims through a
First-Out Cash Payment and Exit Term Loans, if applicable. Holders
of EVPS Second-Out Term Loan Claims will recoup 29% of their
Allowed Claims via receipt of their Pro Rata share of 100% of the
Reorganized Envision Parent New Common Stock, subject to dilution
by the Reorganized Envision Parent Management Incentive Plan and
New Warrants.
Meanwhile, holders of Allowed EVPS Unsecured Funded Debt Claims
will receive their Pro Rata share of New Warrants for a less than
1% recovery. Holders of Allowed General Unsecured Claim against
EVPS Debtors will recoup less than 1% by sharing on a $1 million
cash pool.
About Envision Healthcare Corporation
Envision Healthcare Corporation -- http://www.EnvisionHealth.com/
-- is a national medical group that delivers physician and advanced
practice provider services, primarily in the areas of emergency and
hospitalist medicine, anesthesiology, radiology, teleradiology and
neonatology. As a leader in ambulatory surgical care, AMSURG holds
ownership in more than 250 surgery centers in 41 states and the
District of Columbia, with medical specialties ranging from
gastroenterology to ophthalmology and orthopedics. In total, the
medical group offers a differentiated suite of clinical solutions
on a national scale with a local understanding of communities,
creating value for health systems, payers, providers and patients.
On May 15, 2023, Envision and affiliates filed voluntary petitions
for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D.
Texas Lead Case No. 23-90342). Envision reported $1 billion to $10
billion in both assets and liabilities.
Judge Christopher M. Lopez oversees the cases.
The Debtors tapped Kirkland & Ellis, LLP and Kirkland & Ellis
International, LLP as bankruptcy counsels; Jackson Walker, LLP as
conflict counsel and co-counsel with Kirkland & Ellis; Alvarez &
Marsal North America, LLC as restructuring advisor; PJT Partners,
LP as investment banker; and KPMG, LLP as tax consultant. Kroll
Restructuring Administration, LLC is the claims, noticing and
solicitation agent.
The U.S. Trustee for Region 7 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases. The
committee tapped White & Case, LLP as legal counsel and Force Ten
Partners, LLC as financial advisor. The committee has retained
Piper Sandler & Co. as its investment banker.
EPICOR SOFTWARE: Moody's Lowers Rating on First Lien Loans to B2
----------------------------------------------------------------
Moody's Investors Service downgraded Epicor Software Corporation's
first lien debt facilities to B2 from B1. The B2 Corporate Family
Rating and Caa1 second lien ratings were not affected. The
downgrade reflects the upsizing of the new incremental first lien
term loan to $500 million. With the upsizing, the first lien debt
will exceed 86% of the funded debt in the capital structure
aligning the first lien ratings with the CFR. Moody's expects a
substantial portion of the net proceeds will be used to pay down
second lien debt and have limited if any impact on leverage. The
outlook remains stable.
The first lien debt is expected to have lower spreads than the
second lien debt it replaces. However, underlying rates may offset
some of the net spread savings. Epicor hedges around half of its
debt which mitigates some of the impact of rising rates.
RATINGS RATIONALE
Epicor's B2 CFR incorporates the company's high leverage and
aggressive financial policies, balanced by a leading position as a
provider of enterprise resource planning (ERP) software solutions
to a diverse range of mid-market customers. Epicor maintains strong
niche positions within certain manufacturing, distribution and
retail verticals. The credit profile also recognizes Epicor's high
renewal rates, and thus revenue visibility, from maintenance and
subscription revenues as customers are reluctant to change ERP
software providers.
Moody's estimates that adjusted pro forma leverage based on LTM
March, 2023 results is just under 7x (but just above 6x excluding
certain restructuring, acquisition and other costs) with free cash
flow to debt of about 3.5%. Moody's expects that Epicor will be
acquisitive, which could result in leverage remaining at elevated
levels should the company utilize its revolver to fund its
purchases. In the absence of debt funded acquisitions or
distributions, leverage should improve to around 6x over the next
12 to 18 months.
The stable outlook reflects Moody's expectation that Epicor will
generate mid-single digit revenue and EBITDA growth over the medium
term. While the company is not immune to economic downturns, the
impact will likely be limited in a mild recession scenario. The
stable outlook accommodates a moderate level of debt funded
acquisitions.
FACTORS THAT COULD CHANGE THE RATINGS UP OR DOWN
The ratings for Epicor could be upgraded if leverage is maintained
below 5x and free cash flow to debt is sustained above 8%. The
ratings could be downgraded if leverage exceeds 7x or if free cash
flow to debt is below 3% on other than a temporary basis. The
first lien debt could be downgraded if additional first lien debt
is used to pay down second lien debt given its relative proportion
of the capital structure.
Liquidity is good, supported by an estimated $78 million of cash at
close of the debt refinancing, a $170 million revolving credit
facility ($5 million drawn as of March 31, 2023) maturing in July
2025 and solid levels of free cash flow. The company uses a large
portion of its free cash flow for acquisitions and employee stock
purchases though amounts can vary significantly in any period. In
April 2022, the company entered a $100 million receivables purchase
agreement, which had $72 million of borrowings outstanding as of
March 31, 2023.
Downgrades:
Issuer: Epicor Software Corporation (CD&R)
Senior Secured 1st Lien Bank Credit Facility, Downgraded to B2
from B1
Epicor Software Corp. is a leading provider of enterprise
application software for mid-sized companies. The company had
revenues of approximately $1.1 billion in the twelve months ended
March 31, 2023. Epicor has acquired or merged with several
companies, including Activant Solutions, Inc in 2011. Epicor is
owned by private equity firm Clayton, Dubilier & Rice (CD&R), which
acquired Epicor from private equity group KKR in October 2020.
The principal methodology used in these ratings was Software
published in June 2022.
EPICOR SOFTWARE: Moody's Raises CFR to B2 & First Lien Debt to B1
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Moody's Investors Service upgraded Epicor Software Corporation's
ratings including the Corporate Family Rating to B2 from B3. The
first lien debt facilities and second lien debt were upgraded to B1
from B2 and Caa1 from Caa2, respectively, in line with the increase
in CFR. The upgrade reflects Moody's expectations of continued
stable operating performance and leverage remaining under 6.5x with
healthy levels of free cash flow over the next two years. The
outlook is stable.
Epicor is in the process of refinancing a portion of second lien
debt with add-on first lien debt. The first lien debt is expected
to have lower spreads than the second lien debt it replaces.
Rising underlying rates may offset some of the net spread savings
however. Epicor hedges around half of its debt which mitigates
some of the impact of rising rates.
RATINGS RATIONALE
Epicor's B2 CFR incorporates the company's high leverage and
aggressive financial policies, balanced by a leading position as a
provider of enterprise resource planning (ERP) software solutions
to a diverse range of mid-market customers. Epicor maintains strong
niche positions within certain manufacturing, distribution and
retail verticals. The credit profile also recognizes Epicor's high
renewal rates, and thus revenue visibility, from maintenance and
subscription revenues as customers are reluctant to change ERP
software providers.
Moody's estimates that adjusted pro forma leverage based on LTM
March, 2023 results is just under 7x (but just above 6x excluding
certain restructuring, acquisition and other costs) with free cash
flow to debt of about 3.5%. Moody's expect that Epicor will be
acquisitive, which could result in leverage remaining at elevated
levels should the company utilize its revolver to fund its
purchases. In the absence of debt funded acquisitions or
distributions, leverage should improve to around 6x over the next
12 to 18 months.
The stable outlook reflects Moody's expectation that Epicor will
generate mid-single digit revenue and EBITDA growth over the medium
term. While the company is not immune to economic downturns, the
impact will likely be limited in a mild recession scenario. The
stable outlook accommodates a moderate level of debt funded
acquisitions.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings for Epicor could be upgraded if leverage is maintained
below 5x and free cash flow to debt is sustained above 8%. The
ratings could be downgraded if leverage exceeds 7x or if free cash
flow to debt is below 3% on other than a temporary basis. The
first lien debt could be downgraded if additional first lien debt
is used to pay down second lien debt given its relative proportion
of the capital structure.
Liquidity is good, supported by an estimated $78 million of cash at
close of the debt refinancing, a $170 million revolving credit
facility ($5 million drawn as of March 31, 2023) maturing in July
2025 and solid levels of free cash flow. The company uses a large
portion of its free cash flow for acquisitions and employee stock
purchases though amounts can vary significantly in any period. In
April 2022, the company entered a $100 million receivables purchase
agreement, which had $72 million of borrowings outstanding as of
March 31, 2023.
Assignments:
Issuer: Epicor Software Corporation (CD&R)
Senior Secured 1st Lien Term Loan, Assigned B1
Upgrades:
Issuer: Epicor Software Corporation (CD&R)
Corporate Family Rating, Upgraded to B2 from B3
Probability of Default Rating, Upgraded to B2-PD from B3-PD
Senior Secured 1st Lien Bank Credit Facility, Upgraded to B1 from
B2
Senior Secured 2nd Lien Bank Credit Facility, Upgraded to Caa1
from Caa2
Outlook Actions:
Issuer: Epicor Software Corporation (CD&R)
Outlook, Remains Stable
Epicor Software Company is a leading provider of enterprise
application software for mid-sized companies. The company had
revenues of approximately $1.1 billion in the twelve months ended
March 31, 2023. Epicor has acquired or merged with several
companies, including Activant Solutions, Inc. in 2011. Epicor is
owned by private equity firm Clayton, Dubilier & Rice (CD&R), which
acquired Epicor from private equity group KKR in October 2020.
The principal methodology used in these ratings was Software
published in June 2022.
EQUINOX HOLDINGS: Lord Abbett CB Fund Marks $7MM Loan at 28% Off
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Lord Abbett Corporate Bond Fund has marked its $7,044,482 loan
extended to Equinox Holdings, Inc to market at $5,099,536 or 72% of
the outstanding amount, as of May 31, 2023, according to Corporate
Bond's semi-annual report on Form N-CSR for the period from
December 1, 2022 to May 31, 2023, filed with the Securities and
Exchange Commission.
Lord Abbett Corporate Bond Fund is a participant in a 2017 Second
Lien Term Loan to Equinox Holdings, Inc. The loan accrues interest
at a rate of 12.16% (3 mo. USD LIBOR + 7%) per annum. The loan
matures on September 6, 2024.
Lord Abbett Investment Trust is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end
management investment company and was organized as a Delaware
statutory trust on August 16, 1993. The Trust currently consists of
14 funds as of May 31, 2023. The semi-annual report covers 12 of
the funds namely: Lord Abbett Convertible Fund, Lord Abbett Core
Fixed Income Fund, Lord Abbett Core Plus Bond Fund, Lord Abbett
Corporate Bond Fund, Lord Abbett Floating Rate Fund, Lord Abbett
High Yield Fund, Lord Abbett Income Fund, Lord Abbett Inflation
Focused Fund, Lord Abbett Short Duration Core Bond Fund, Lord
Abbett Total Return Fund, Lord Abbett Ultra Short Bond Fund.
Equinox Holdings Inc., through its subsidiaries, provides fitness
services such as yoga classes and studio cycling.
EVANGELICAL RETIREMENT: Wins Cash Access on Final Basis
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The U.S. Bankruptcy Court for the Northern District of Illinois,
Eastern Division, authorized Evangelical Retirement Homes of
Greater Chicago, Incorporated, d/b/a Friendship Village of
Schaumburg, to use cash collateral on a final basis, in accordance
with the budget, with a 10% variance.
UMB Bank, N.A. is the bond trustee under a Bond Trust Indenture
dated as of December 1, 2017, by and between the Illinois Finance
Authority and the Debtor.
The Bond Trustee holds a perfected first priority security interest
on certain real and personal property owned by the Debtor.
The Indenture and the liens granted thereunder secure two separate
obligations:
a. Illinois Finance Authority Revenue Bonds, Series 2017
(Friendship Village of Schaumburg) in the aggregate principal
amount of $122.55 million pursuant to the Bond Indenture which on
April 30, 2023, had a principal balance of $115.18 million and
interest due of $6.2 million, totaling $120.77 million; and
b. Evangelical Retirement Homes of Greater Chicago,
Incorporated Direct Note Obligation, Series 2017 (UMB Bank,
National Association - Friendship Senior Options, NFP Guaranty), in
the original principal amount of $13.75 million and having as of
January 31, 2023, a current principal amount due of approximately
$10.11 million principal and $153,387 interest, totaling $10.27
million.
The bond debt secured by the liens and security interests of the
Bond Trustee totals $131.1 million.
As adequate protection, the Bond Trustee is granted valid,
perfected, and enforceable senior priority replacement liens in (i)
all assets of the Debtor existing on or after the Petition Date of
the same type as the Pre-Petition Collateral, together with the
proceeds, rents, products, and profits thereof, whether acquired or
arising before or after the Petition Date, to the same extent,
validity, perfection, enforceability, and priority of the liens and
security interests of the Bond Trustee as of the Petition Date; and
(ii) all other assets of the Debtor of any kind or nature
whatsoever within the meaning of 11 U.S.C. section 541.
As additional adequate protection for any Diminution in Value, the
Bond Trustee will have a superpriority administrative expense claim
pursuant to 11 U.S.C. section 507(b) with recourse to and payable
from any and all assets of the Debtor's estate, except the account
ending in 4931 at Schaumburg Bank & Trust Company, N.A.
The events that constitute an "Event of Default" includes:
1. the failure of the Debtor to pay all of its administrative
expenses in full in accordanee with and subject to the terms as
provided for in the Approved Budget;
2. the Final Order becomes stayed, reversed, vacated, amended or
otherwise modified in any respect without the prior written consent
of the Bond Trustee, except by the Final Order;
3. failure to meet any of the Bankruptcy Milestones or other
covenants set forth in the Final Order; and
4. the failure of the Debtor to have an order granting its motion
seeking, inter alia, approval of procedures related to the sale of
substantially all of the Debtor's assets [Dkt. No. 45] entered by
no later than July 5, 2023 (plus the 14 days allowed for compliance
with the Court's DOTF procedures) in form and substance
substantially approved by the Bond Trustee established pursuant to
that Bid Procedures Order.
A copy of the Court's order and the Debtor's budget is available at
https://urlcurt.com/u?l=Ax4lv5 from PacerMonitor.com.
The Debtor projects total operating disbursements, on a weekly
basis, as follows:
$1,756,978 for the week ending August 25, 2023;
$761,233 for the week ending September 1, 2023;
$920,879 for the week ending September 8, 2023;
$374,505 for the week ending September 15, 2023;
$1,738,333 for the week ending September 22,2023;
$1,079,918 for the week ending September 29,2023;
$948,155 for the week ending October 6, 2023;
$372,329 for the week ending October 13, 2023;
$1,029,891 for the week ending October 20, 2023; and
$1,462,923 for the week ending October 27, 2023;
About Evangelical Retirement Homes
of Greater Chicago
Evangelical Retirement Homes of Greater Chicago, Incorporated
sought protection under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. N.D. Ill. Case No. 23-07541) on June 9, 2023. In the
petition signed by its chief executive officer, Michael Flynn, the
Debtor disclosed $10 million to $50 million in assets and $100
million to $500 million in liabilities.
Judge Timothy A. Barnes oversees the case.
The Debtor tapped Bruce C. Dopke, Esq., at Dopkelaw, LLC and
Polsinelli, PC as legal counsels, and WYSE Advisors, LLC as
financial advisor.
The U.S. Trustee for Region 11 appointed an official committee to
represent unsecured creditors in the Debtor's Chapter 11 case. The
committee is represented by Crane, Simon, Clar & Goodman.
EXIGENT LANDSCAPING: May Use Cash Collateral Access
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The U.S. Bankruptcy Court for the Eastern District of Michigan,
Southern Division, Detroit, authorized Exigent Landscaping, LLC to
use cash collateral in the amount of $275,214 on an interim basis
in accordance with the budget, with a 10% variance.
The Debtor requires funds to pay expenses in connection with
maintaining operations.
To the extent of any diminution in value of the pre-petition cash
collateral, U.S. Small Business Administration is granted the
following Replacement Liens as adequate protection. The Replacement
Liens with be lies on the Debtor's assets which are created,
acquired, or arise after Petition Date, but limited to only those
types and descriptions of collateral in which SBA held a
pre-petition lien or security interest.
To the extent of any diminution in value of the pre-petition cash
collateral, SCP Distributors LLC is granted the following
Replacement Liens as adequate protection. The Replacement Liens
will be liens on the Debtor's assets which are created, acquired,
or arise after Petition Date, but limited to only those types and
descriptions of collateral in which SCP Distributors LLC held a
prepetition lien or security interest. The Replacement Liens will
have the same priority and validity as the pre-petition security
interest and liens.
To the extent of any diminution in value of the pre-petition cash
collateral, V Cap is granted the following Replacement Liens as
adequate protection. The Replacement Liens will be liens on the
Debtor's assets which are created, acquired, or arise after
Petition Date, but limited to only those types and descriptions of
collateral in which V Cap held a pre-petition lien or security
interest. The Replacement will have the same priority and validity
as the pre-petition security interest and liens.
A final hearing on the matter is set for August 30 at 11 a.m.
A copy of the order is available at https://urlcurt.com/u?l=9f83rV
from PacerMonitor.com.
About Exigent Landscaping, LLC
Exigent Landscaping, LLC is a full service design and build outdoor
construction company specializing 3D designs, pools, hardscaping,
landscaping, patios, pergolas, and outdoor kitchens.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Mich. Case No. 23-46912) on August 7,
2023. In the petition filed by Brandon Heitman, president and sole
member, the Debtor disclosed up to $1 million in assets and up to
$10 million in liabilities.
Judge Thomas J. Tucker oversees the case.
Ernest M. Hassan, Esq., at STEVENSON & BULLOCK, P.L.C., represents
the Debtor as legal counsel.
FEILITECH US: Gets OK to Hire James W. Smith III as Accountant
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Feilitech US, LLC received approval from the U.S. Bankruptcy Court
for the Northern District of Mississippi to employ James W. Smith
III, CPA, PC.
The Debtor requires an accountant to prepare and file its federal
and state tax returns and provide other tax and accounting
services.
The firm will be paid a fixed fee of $3,000 for the preparation of
its 2022 federal and state tax returns. For the other services, the
firm will charge these hourly fees:
Accountant $190 per hour
Assistant $100 per hour
James Smith III, a partner at James W. Smith III, CPA, 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:
James W. Smith III
James W. Smith III, CPA, PC
108 E Jefferson St.
Ripley, MS 38663
Tel: (662) 512-1710
About Feilitech US
Feilitech US, LLC is a manufacturer of spring and wire products in
Belden, Miss.
Feilitech US filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. N.D. Miss. Case No. 23-10599) on Feb. 28,
2023, with $1 million to $10 million in both assets and
liabilities. Judge Selene D. Maddox oversees the case.
Judge Selene D. Maddox oversees the case.
The Debtor tapped Cozen O'Connor and Jones Walker, LLP as legal
counsels and James W. Smith III, CPA, PC as accountant.
FLUID CONSTRUCTION: Case Summary & 20 Largest Unsecured Creditors
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Debtor: Fluid Construction Inc.
FKA Evolve Construction and Consulting Services
1064 West Highway 50
Suite 215
Clermont, FL 34711
Business Description: The Debtor offers new construction and
repairs/restorations services.
Chapter 11 Petition Date: August 18, 2023
Court: United States Bankruptcy Court
Middle District of Florida
Case No.: 23-03376
Debtor's Counsel: Jeffrey S. Ainsworth, Esq.
BRANSONLAW, PLLC
1501 E. Concord Street
Orlando, FL 32803
Tel: 407 894 6834
Fax: 407 894 8559
Email: jeff@bransonlaw.com
Total Assets: $142,852
Total Liabilities: $2,339,979
The petition was signed by Charles Tirri as CEO.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/F6PIZHY/Fluid_Construction_Inc__flmbke-23-03376__0001.0.pdf?mcid=tGE4TAMA
FRONTERA GENERATION: Lord Abbett CB Fund Says $3MM Loan at 55% Off
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Lord Abbett Corporate Bond Fund has marked its $2,863,989 loan
extended to Frontera Generation Holdings LLC to market at
$1,288,795 or 45% of the outstanding amount, as of May 31, 2023,
according to Corporate Bond's semi-annual report on Form N-CSR for
the period from December 1, 2022 to May 31, 2023, filed with the
Securities and Exchange Commission.
Lord Abbett Corporate Bond Fund is a participant in a 2021 Second
Lien Term Loan to Frontera Generation Holdings LLC. The loan
accrues interest at a rate of 6.66% (3 mo. USD LIBOR + 1.50%) per
annum. The loan matures on July 28, 2028.
Lord Abbett Investment Trust is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end
management investment company and was organized as a Delaware
statutory trust on August 16, 1993. The Trust currently consists of
14 funds as of May 31, 2023. The semi-annual report covers 12 of
the funds namely: Lord Abbett Convertible Fund, Lord Abbett Core
Fixed Income Fund, Lord Abbett Core Plus Bond Fund, Lord Abbett
Corporate Bond Fund, Lord Abbett Floating Rate Fund, Lord Abbett
High Yield Fund, Lord Abbett Income Fund, Lord Abbett Inflation
Focused Fund, Lord Abbett Short Duration Core Bond Fund, Lord
Abbett Total Return Fund, Lord Abbett Ultra Short Bond Fund.
Frontera Generation Holdings LLC operates as a holding company. The
Company, through its subsidiaries, generates electricity from
centralized power plants from fossil electric fuel resources.
FRONTERA GENERATION: Lord Abbett HY Says $1.2MM Loan at 55% Off
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Lord Abbett High Yield Fund has marked its $1,196,824 loan extended
to Frontera Generation Holdings LLC to market at $538,571 or 45% of
the outstanding amount, as of May 31, 2023, according to High
Yield's semi-annual report on Form N-CSR for the period from
December 1, 2022 to May 31, 2023, filed with the Securities and
Exchange Commission.
Lord Abbett High Yield Fund is a participant in a 2021 Second Lien
Term Loan to Frontera Generation Holdings LLC. The loan matures on
July 28, 2028.
Lord Abbett Investment Trust is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end
management investment company and was organized as a Delaware
statutory trust on August 16, 1993. The Trust currently consists of
14 funds as of May 31, 2023. The semi-annual report covers 12 of
the funds namely: Lord Abbett Convertible Fund, Lord Abbett Core
Fixed Income Fund, Lord Abbett Core Plus Bond Fund, Lord Abbett
Corporate Bond Fund, Lord Abbett Floating Rate Fund, Lord Abbett
High Yield Fund, Lord Abbett Income Fund, Lord Abbett Inflation
Focused Fund, Lord Abbett Short Duration Core Bond Fund, Lord
Abbett Total Return Fund, Lord Abbett Ultra Short Bond Fund.
Frontera Generation Holdings LLC operates as a holding company. The
Company, through its subsidiaries, generates electricity from
centralized power plants from fossil electric fuel resources.
FT MEDICAL: Case Summary & 20 Largest Unsecured Creditors
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Debtor: FT Medical Group LLC
DBA ID Tech Molecular Laboratories
777 Cleveland Ave
Suite 516
Atlanta, GA 30315
Business Description: ID Tech Molecular is a full-service
molecular and clinical laboratory that
offers a complete suite of sample
collection, laboratory testing, and
reporting/analysis capabilities.
Chapter 11 Petition Date: August 18, 2023
Court: United States Bankruptcy Court
Northern District of Georgia
Case No.: 23-57910
Judge: Hon. Lisa Ritchey Craig
Debtor's Counsel: Ian Falcone, Esq.
THE FALCONE LAW FIRM, PC
363 Lawrence St NE
Marietta, GA 30060-2056
Tel: (770) 426-9359
Email: imf@falconefirm.com
Total Assets: $1,153,142
Total Liabilities: $5,413,254
The petition was signed by Darryle Farr as COO.
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/WKIHSUA/FT_Medical_Group_LLC__ganbke-23-57910__0001.0.pdf?mcid=tGE4TAMA
FTI CONSULTING: Moody's Affirms Ba1 CFR & Rates Secured Loans Ba1
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Moody's Investors Service affirmed FTI Consulting, Inc.'s corporate
family rating at Ba1 and probability of default rating at Ba1-PD.
Moody's also assigned a Ba1 rating to FTI's senior secured
revolving credit facility expiring 2027. The speculative-grade
liquidity ("SGL") rating is unchanged at SGL-1. The outlook remains
stable. Washington, DC-based FTI Consulting is a global business
advisory firm.
Moody's expects that FTI's 2.0% convertible senior notes due August
15, 2023 will be repaid in full at maturity. The Ba2 notes rating
will be withdrawn once they are no longer outstanding.
The affirmation of the Ba1 CFR reflects Moody's anticipation for
mid-single-digit constant currency revenue growth, especially in
its counter-cyclical restructuring business, moderate debt to
EBITDA around 1.5 times over the next 12 to 18 months and about 2.5
times throughout business cycles and a very good liquidity
profile.
RATINGS RATIONALE
The Ba1 CFR reflects FTI Consulting's over $3 billion revenue
scale, global operating scope and diverse portfolio of business
lines operating through about 6,000 revenue-generating
professionals under its well-known, eponymous brand. Moody's
considers the advisory services business highly competitive and
subject to limited entry barriers, with inconsistent and difficult
to forecast demand characteristics. Business success is dependent
upon the efficient utilization of skilled, high-cost professionals
who are challenging to source, train and retain. Given these
factors and in order to maintain financial flexibility, Moody's
expects FTI Consulting will maintain strong credit metrics and
robust liquidity through business cycles compared to many other
business services issuers also rated in the Ba1 category.
An increase in travel and entertainment expenses and ramp in new
hires, both associated with maintaining revenue growth, as well as
transitory matters, such as revenue recognition timing for certain
significant contracts, have pinched EBITA margins down to around
10.6% for the LTM period ended June 30, 2023, well below the low
teens range recorded from 2018 to 2021. Moody's anticipates profit
rates could remain pressured in 2023 and 2024 by higher
non-operating expenses, driven by FTI's revenue growth initiatives.
Likewise, Moody's expects free cash flow to be lower than it was
over the last four years, but to remain well above 10% of debt,
while EBITA to interest expense is anticipated to be in a
mid-teens-percentage range.
All financial metrics cited reflect Moody's standard adjustments.
Moody's anticipates solid demand for business advisory services to
corporate and government clients, reflecting a high level of change
being experienced by its customers, including due to
technology-related disruption, and by growth in the number of new
engagements and the average rates billed to help fuel expected
revenue growth. Most of FTI's revenue is repeating, recurring or
referred through long-standing relationships with many of the
world's largest and most prominent law firms, investment banks and
corporations, leading Moody's to expect FTI can maintain or grow
its market share by broadening its business line span and
geographic reach. Litigation, restructuring and other business
lines are non- or counter-cyclical, but are also subject to
inconsistent demand, generally triggered by large-scale litigation
or defaults. Moody's expects free cash flow will be prioritized
toward share repurchases and small acquisitions.
The assignment of the Ba1 rating to the senior secured bank credit
facility incorporates FTI's overall probability of default,
reflected in the affirmed Ba1-PD PDR, an average overall recovery
at default assumed of 50% and a loss given default assessment of
LGD3, reflecting the senior priority of the revolver relative to
the unsecured obligations of FTI's operating subsidiaries.
FTI Consulting's SGL rating of SGL-1 reflects the very good
liquidity profile relative to its funding requirements over the
next 12-15 months. The company's liquidity is supported by $200
million of anticipated free cash flow and approximately $204
million of cash as of June 30, 2023, along with over $550 million
available under the $900 million revolver, assuming that the entire
cash portion of the unsecured note repayment is sourced with
revolving credit facility loans.
Cash flow from operations could fluctuate during the year due to
the timing of accounts receivable collections, loans to key
employees pursuant to employment contracts and earnout obligations
from prior acquisitions. The company typically reports negative
cash flow from operations in the first quarter of each year mainly
because of the timing of the incentive compensation payments.
The revolver agreement requires the company to maintain compliance
with a maximum consolidated total leverage ratio test of 4.0x, or
4.5x for a period of time after certain qualifying acquisitions (as
defined in the agreement). Moody's anticipates that the company
will maintain an ample cushion under its covenant over the next
12-15 months.
The stable outlook reflects Moody's expectation that FTI Consulting
will maintain debt-to-EBITDA around 2.5 times and free cash
flow-to-debt well above 10% throughout business cycles.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if FTI: 1) sustains revenue growth in
a mid-to-high single digit percentage range; 2) expands and
maintains its EBITA margin at mid-teens levels; 3) sustains debt to
EBITDA below 2.5 times throughout economic cycles; 4) articulates
and maintains balanced financial strategies; and 5) maintains a
predominately unsecured debt capital structure.
The ratings could be downgraded if: 1) revenue or profitability
rates decline; 2) debt to EBITDA remains above 3.0 times; 3) free
cash flow is sustained below 10% of debt; 4) the liquidity profile
deteriorates; or 5) financial strategies become more aggressive by
featuring material debt-funded acquisitions or shareholder
returns.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
Moody's took the following actions and made the following outlook
statement:
Issuer: FTI Consulting, Inc.
Corporate Family Rating, Affirmed Ba1
Probability of Default Rating, Affirmed Ba1-PD
Senior Secured Revolving Credit Facility, Assigned Ba1
Outlook, Remains Stable
FTI Consulting (NYSE: FCN), based in Washington, DC, is a global
business advisory firm providing services through five business
segments: Corporate Finance & Restructuring; Forensic and
Litigation Consulting (FLC); Economic Consulting; Technology; and
Strategic Communications. Moody's expects 2023 revenue to approach
$3.3 billion.
FUSION GALAXY: Gets OK to Hire Guidant Law as Bankruptcy Counsel
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Fusion Galaxy, LLC received approval from the U.S. Bankruptcy Court
for the District of Arizona to employ Guidant Law, PLC to handle
its Chapter 11 bankruptcy case.
Guidant Law received the sum of $42,696.39, which was used to pay
the fees and costs of the Debtor pre-petition, including the
Chapter 11 filing fee. As of July 26, the amount in Guidant Law's
trust account was $36,335.89.
As disclosed in court filings, Guidant Law is a "disinterested
person" pursuant to Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
D. Lamar Hawkins, Esq.
JoAnn Falgout, Esq.
Guidant Law, PLC
402 E. Southern Ave.
Tempe, AZ 85282
Telephone: (602) 888-9229
Facsimile: (480) 725-0087
Email: lamar@guidant.law
joann.falgout@guidant.law
About Fusion Galaxy
Fusion Galaxy, LLC is a full service, eco-friendly dry cleaner in
Arizona.
Fusion Galaxy filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. D. Ariz. Case No. 23-05010) on July 26,
2023, with $342,116 in assets and $1,686,283 in liabilities. Robert
Lyle Agnew, manager, signed the petition.
Judge Madeleine C. Wanslee oversees the case.
Guidant Law, PLC represents the Debtor as bankruptcy counsel.
G&S FAMILY: Seeks to Hire Caldwell & Riffee as Legal Counsel
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G&S Family, LLC seeks approval from the U.S. Bankruptcy Court for
the Northern District of West Virginia to hire Caldwell & Riffee,
PLLC as its legal counsel.
The Debtor requires legal counsel to:
1. Give advice with respect to the powers and duties of the
Debtor;
2. Assist the Debtor on avoiding unfair loans;
3. Negotiate adequate protection payments;
4. Investigate causes of action including the possibility of
fraudulent transfers to certain lenders; and
5. Assist the Debtor in the preparation of a disclosure
statement and Chapter 11 plan of reorganization.
Caldwell & Riffee received the sum of $8,000 for its services
within one year prior to the filing of the Debtor's Chapter 11
case. The firm is seeking an additional $5,000 within the first 120
days of the case.
As disclosed in court filings, Caldwell & Riffee neither holds nor
represents any interest adverse to the Debtor.
The firm can be reached at:
Joseph W. Caldwell, Esq.
Caldwell & Riffee, PLLC
P.O. Box 4427
Charleston, WV 25364
Phone: +1 304-925-2100
Email: jcaldwell@caldwellandriffee.com
About G&S Family
G&S Family, LLC filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. N.D. W.Va. Case No. 23-00349) on July
26, 2023, with $500,001 to $1 million in assets and $500,001 to $1
million in liabilities. Michelle Steele has been appointed as
Subchapter V trustee.
G&S Family tapped Joseph W. Caldwell, Esq., at Caldwell & Riffee as
legal counsel; and Lorie Meadows as accountant. Larry Cottle, owner
of G&S Family, works for the company as manager.
G&S FAMILY: Seeks to Hire Larry Cottle as Manager
-------------------------------------------------
G&S Family, LLC, through its legal counsel, seeks approval from the
U.S. Bankruptcy Court for the Northern District of West Virginia to
hire Larry Cottle to manage the company's operations.
Mr. Cottle is the owner of G&S Family. His services as manager will
include overseeing the hiring of employees; purchasing food
supplies; marketing; paying invoices; and other day-to-day
activities in connection with the operation of G&S Family's
business.
Mr. Cottle will be compensated at $8,000 per month.
As disclosed in court papers, Mr. Cottle neither holds nor
represents any interest adverse to G&S Family and its bankruptcy
estate.
Mr. Cottle can be reached at:
Larry Cottle
G&S Family, LLC
P.O. Box 617
G&S Family, LLC
Williamsport, MD 21795
About G&S Family
G&S Family, LLC filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. N.D. W.Va. Case No. 23-00349) on July
26, 2023, with $500,001 to $1 million in assets and $500,001 to $1
million in liabilities. Michelle Steele has been appointed as
Subchapter V trustee.
G&S Family tapped Joseph W. Caldwell, Esq., at Caldwell & Riffee as
legal counsel; and Lorie Meadows as accountant. Larry Cottle, owner
of G&S Family, works for the company as manager.
G&S FAMILY: Seeks to Hire Lorie Meadows as Accountant
-----------------------------------------------------
G&S Family, LLC seeks approval from the U.S. Bankruptcy Court for
the Northern District of West Virginia to hire Lorie Meadows, a
practicing accountant in Winfield, W.Va.
The Debtor requires an accountant to prepare its monthly operating
reports; file all payroll and corporate tax returns; and assist its
legal counsel in the preparation of financial projections.
Ms. Meadows will be compensated at $150 per hour for her services.
The retainer fee is $2,000.
As disclosed in court filings, Ms. Meadows neither holds nor
represents any interest adverse to the Debtor and its estate.
Ms. Meadows can be reached at:
Lorie Meadows
Lorie Smith Meadows, PLLC
13059 Winfield Road
Winfield, WV 25213
Phone: 304.586.9677
Email: lsmpllc@frontier.com
About G&S Family
G&S Family, LLC filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. N.D. W.Va. Case No. 23-00349) on July
26, 2023, with $500,001 to $1 million in assets and $500,001 to $1
million in liabilities. Michelle Steele has been appointed as
Subchapter V trustee.
G&S Family tapped Joseph W. Caldwell, Esq., at Caldwell & Riffee as
legal counsel; and Lorie Meadows as accountant. Larry Cottle, owner
of G&S Family, works for the company as manager.
GAFC SERVICES: Case Summary & Six Unsecured Creditors
-----------------------------------------------------
Debtor: GAFC Services, LLC
Carr 887 KM 0.2, Bo San Anton
Carolina, PR 00987
Business Description: The Debtor owns two properties in Puerto
Rico valued at $1.98 million.
Chapter 11 Petition Date: August 18, 2023
Court: United States Bankruptcy Court
District of Puerto Rico
Case No.: 23-02567
Judge: Hon. Mildred Caban Flores
Debtor's Counsel: Jacqueline Hernandez, Esq.
HERNANDEZ LAW OFFICES
PO Box 366431
San Juan, PR 00936-6431
Email: quiebras1@gmail.com
Total Assets: $2,245,501
Total Liabilities: $1,565,422
The petition was signed by Juan Carlos Arocha as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's six unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/W6Q43RQ/GAFC_SERVICES_LLC__prbke-23-02567__0001.0.pdf?mcid=tGE4TAMA
GMS SUNSET: Case Summary & One Unsecured Creditor
-------------------------------------------------
Debtor: GMS Sunset LLC
1141 Elden Street, Ste. 224
Herndon, VA 20170
Business Description: GMS Sunset is a Single Asset Real Estate
debtor (as defined in 11 U.S.C. Section
101(51B)).
Chapter 11 Petition Date: August 17, 2023
Court: United States Bankruptcy Court
Eastern District of Virginia
Case No.: 23-11315
Debtor's Counsel: Nathan Fisher, Esq.
FISHER-SANDLER, LLC
3977 Chain Bridge Rd., Suite #2
Fairfax, VA 22030
Tel: (703) 691-1642
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $100,000 to $500,000
The petition was signed by George Cholakis as president.
The Debtor listed Sunset Business Park Condo Ass Markey Management
as its sole unsecured creditor holding a claim of $10,000.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/AKRJ5RQ/GMS_SUNSET_LLC__vaebke-23-11315__0001.0.pdf?mcid=tGE4TAMA
GOLDEN KEY: Taps Frost & Associates as Special Tax Counsel
----------------------------------------------------------
Golden Key Group, LLC seeks approval from the U.S. Bankruptcy Court
for the District of Maryland to employ Frost & Associates, LLC as
special tax counsel.
The firm's services include:
a. Determining for which quarters the Debtor qualifies for the
Employee Retention Credit;
b. Preparing a legal memo analyzing the Debtor's eligibility
for the ERC;
c. Calculating the available ERC the Debtor is eligible to
claim;
d. Working with the Debtor's accountant, payroll company, or
in-house team to prepare and file Form 941 or 941(X) to claim the
ERC; and
e. Providing general tax advice concerning the implications of
the ERC.
The firm will be paid at these rates:
Partners $495 to 675 per hour
Of Counsel $405 to 675 per hour
Senior Associates/Contract Attorneys $450 to 645 per hour
Law Clerks $215 to 395 per hour
Paraprofessionals $160 to 325 per hour
CPAs/Enrolled Agents $350 to 675 per hour
Administrative Staff $150 to 250 per hour
The retainer fee is $65,000.
Rebecca Sheppard, Esq., a partner at Frost & Associates, disclosed
in a court filing that her firm is a "disinterested person"
pursuant to Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Rebecca Sheppard, Esq.
Frost & Associates, LLC
dba Frost Law
1840 Hillside Road
Stevenson, MD 21153
Email: rebecca.sheppard@askfrost.com
About Golden Key Group
Golden Key Group, LLC is a professional services firm dedicated to
helping federal and commercial clients solve today's strategic,
organizational and operational challenges while addressing their
future needs. Founded in 2002, Golden Key Group's solution
offerings include Human Capital Management Support, Human Resources
Operations, Employee Training and Leadership Development,
Professional Consulting Services, Program Management Office,
Acquisition and Category Management, Analytics and Information
Technology, Executive Search Services, and Select Solutions. The
company is based in Landover, Md.
Golden Key Group filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. D. Md. Case No. 23-10414)
on Jan. 20, 2023, with 1 million to $10 million in assets and $10
million to $50 million in liabilities. Gretchen McCracken, Golden
Key Group's chief executive officer and managing member, signed the
petition.
Judge Maria Ellena Chavez-Ruark oversees the case.
The Debtor tapped Paul Sweeney, Esq., at YVS Law, LLC as bankruptcy
counsel; SouthBank Legal and Fox Rothschild, LLP as special
counsels; and Aiken Warner Leonard, PLLC as accounting consultant.
The U.S. Trustee for Region 4 appointed an official committee to
represent unsecured creditors in the
Debtor's Chapter 11 case. The committee tapped Whiteford Taylor &
Preston, LLP as legal counsel; SC&H Group as financial advisor; and
SC&H Capital as investment banker.
GREEN DISTRICT: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Green District Franchisee Parent Inc.
225 S. 5th Street
Louisville, KY 40202
Business Description: The Debtor operates restaurant serving
salads, wraps, grain Bowls, and toasty's.
Chapter 11 Petition Date: August 18, 2023
Court: United States Bankruptcy Court
Western District of Kentucky
Case No.: 23-31922
Judge: Hon. Joan A Lloyd
Debtor's Counsel: Dean A. Langdon, Esq.
DELCOTTO LAW GROUP PLLC
200 North Upper St.
Lexington, KY 40507
Tel: (859) 231-5800
Fax: (859) 281-1179
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Chris Furlow as director.
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/J62RVYY/Green_District_Franchisee_Parent__kywbke-23-31922__0001.0.pdf?mcid=tGE4TAMA
GREEN HYGIENICS: Taps Bisom Law Group as Bankruptcy Counsel
-----------------------------------------------------------
Green Hygienics Holdings, Inc. seeks approval from the U.S.
Bankruptcy Court for the Southern District of California to employ
The Bisom Law Group as bankruptcy counsel.
The Debtor requires legal services in connection with its Chapter
11 case, which include the preparation of a Chapter 11 plan,
negotiation with creditors and representation in adversary
actions.
Bisom Law Group will be compensated at $550 per hour. The retainer
fee is $14,500.
Andrew Bisom, Esq., a principal at Bisom Law Group, disclosed in
court filings that his firm is "disinterested" pursuant to Section
101(14) of the Bankruptcy Code.
The firm can be reached through:
Andrew S. Bisom, Esq.
The Bisom Law Group
300 Spectrum Center Drive, Ste. 1575
Irvine, CA 92618
Tel: (714) 643-8900
Fax: (714) 643-8901
Email: abisom@bisomlaw.com
About Green Hygienics Holdings
Green Hygienics Holdings, Inc., formerly known as Takedown
Entertainment Inc., focuses on the cultivation and processing of
industrial hemp for extracting cannabidiol. It was founded in 2008
and is based in Poway, Calif.
Green Hygienics Holdings filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Calif. Case
No. 23-01998) on July 11, 2023, with $20,250,600 in assets and
$10,291,084 in liabilities. Todd Mueller, chief executive officer,
signed the petition.
Judge Margaret M. Mann oversees the case.
Andrew S. Bisom, Esq., at The Bisom Law Group represents the Debtor
as counsel.
GREENBERG GOURMET: Gets Interim OK on Cash Collateral Access
------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Maryland, Greenbelt
Division, authorized Greenberg Gourmet, LLC to use cash collateral
on an interim basis in accordance with the budget, during the
period from July 28, 2023 through and including August 31, 2023.
PNC Bank, N.A. asserts a secured claim against the Debtor pursuant
to a term loan promissory note, and a UCC-1 Financing Statement
filed with the Maryland State Department of Assessments and
Taxation. PNC asserts an unpaid balance as of the Petition Date in
the amount of approximately $93,914, exclusive of fees, costs and
amounts that PNC is owed pursuant to the Business Access Line of
Credit Loan.
PNC asserts a security interest in and lien upon, among other
things, all accounts receivable, inventory, equipment, and the
proceeds of the foregoing.
To the extent the cash collateral is used by the Debtor and such
use results in a diminution of the value of the cash collateral,
PNC is entitled, pursuant to Sections 361(2) and 363(c)(2) of the
Bankruptcy Code, a replacement lien in and to all post-petition
assets of the Debtor, to the same extent and with the same priority
as PNC's interest in the Pre-Petition Collateral.
The liens and security interests granted to PNC, including the
Adequate Protection Liens, will become and are duly perfected
without the necessity for the execution, filing or recording of
financing statements, security agreements and other documents which
might otherwise be required pursuant to applicable non-bankruptcy
law for the creation or perfection of such liens and security
interests.
A further interim hearing on the matter is set for August 28 at 1
p.m.
A copy of the order is available at https://urlcurt.com/u?l=xU611l
from PacerMonitor.com.
The Debtor projects $80,100 in gross revenue and $78,933 in total
expenses for the period from August 11 to 31, 2023.
About Greenberg Gourmet
Greenberg Gourmet, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Md. Case No. 23-15301) on Julu 28,
2023. In the petition signed by Lee G. Greenberg, managing member,
the Debtor disclosed up to $100,000 in assets and up to $500,000 in
liabilities.
Judge Maria Elena Chavez-Ruark oversees the case.
Craig M. Palik, Esq., at McNamee Hosea, P.A., represents the Debtor
as legal counsel.
GSCG TRUST 2019-600C: S&P Lowers Rating on Class X Certs to 'B
--------------------------------------------------------------
S&P Global Ratings lowered its ratings on the class A, B, C, D, and
X commercial mortgage pass-through certificates from GSCG Trust
2019-600C, a U.S. CMBS transaction. At the same time, S&P placed
its ratings on these classes on CreditWatch with negative
implications.
This U.S. stand-alone (single-borrower) CMBS transaction is backed
by a five-year, fixed-rate, interest-only (IO) mortgage loan
secured by the borrower's fee simple interest in a class A- office
property located at 600 California St. in San Francisco's Financial
District office submarket.
Rating Actions
S&P said, "The downgrades on the class A, B, C, and D certificates
reflect our revised valuation, which is lower than the valuation we
derived in our last review in March 2023, primarily due to higher
vacancy stemming from a large tenant comprising 8.3% of net
rentable area (NRA) vacating upon its June 2023 lease expiration
and the property's significant exposure to a tenant that is now
subject to a going-concern qualification, WeWork Inc. (WeWork;
'CCC/Outlook Negative'). WeWork currently leases 51.7% of NRA and,
according to the servicer, stopped paying rent in March 2023. The
tenant had proposed bringing past-due rent current in exchange for
reducing its footprint at the property, which we have considered in
our derivation of value. In addition, we placed our ratings on
these classes on CreditWatch with negative implications because of
our concerns with the viability of the largest tenant, WeWork, and
the increase in trust exposure because the borrower is currently
delinquent on its debt service payments. The borrower has not made
debt service payments since February 2023, and the master servicer
has advanced $4.7 million in interest, taxes, insurance, and other
expenses as of the Aug. 11, 2023, trustee remittance report. So
long as the loan remains unresolved and servicing advances continue
to build up because of uncertainty surrounding WeWork, we expect
reduced liquidity and lower recovery to the bondholders since
servicing advances are paid senior per the transaction waterfall.
"In our last review in March 2023, we assumed a 73.7% occupancy
rate (in line with the weakened office submarket fundamentals), an
S&P Global Ratings $79.24 per sq. ft. base rent and $85.68 per sq.
ft. gross rent, and a 45.0% operating expense ratio to arrive at a
revised and lower long-term sustainable net cash flow (NCF) of
$10.7 million. At that time, we also increased our capitalization
rate by 50 basis points to 7.75% and derived an S&P Global Ratings
expected case value of $138.7 million, or $386 per sq. ft. While
actual occupancy at the property remains higher than our
assumption, nevertheless, it dropped to 77.5% as of the July 1,
2023, rent roll from 87.8% as of the Sept. 30, 2022, rent roll. In
addition, WeWork has stopped paying rent and is seeking to reduce
about 36,800 sq. ft. of its 186,130 sq. ft. leased space at the
property, while the office fundamentals in this submarket continue
to experience material declines in occupancy and rents. Although
the tenant had proposed bringing past-due rent current in exchange
for reducing its footprint at the property, WeWork's warning of
doubt about its ability to stay in business earlier this month cast
uncertainty over any potential workout between the tenant and
borrower. As a result, we revised our vacancy and rent assumptions
downward to a 67.5% occupancy rate, $72.32 per sq. ft. base rent,
and $79.54 per sq. ft. gross rent, as calculated by S&P Global
Ratings and a 45.0% operating expense ratio, yielding a long-term
sustainable NCF of $9.2 million, 14.7% lower than our March 2023
review NCF of $10.7 million, and 45.2% below the servicer-reported
2022 NCF of $16.7 million. Using the same S&P Global Ratings
capitalization rate of 7.75% as of our last review, we arrived at
an S&P Global Ratings value of $118.3 million or $329 per sq. ft.,
14.7% lower than our last review value of $138.7 million and 35.4%
lower than the updated April 2023 appraisal value of $183.0
million. This yielded an S&P Global Ratings loan-to-value ratio of
202.9% on the trust balance, up from 173.0% in our last review."
Although the model-indicated ratings were lower than the classes'
revised ratings, S&P tempered its downgrades on classes A, B, C,
and D based on certain weighted qualitative considerations. These
include:
-- The potential that the property's operating performance could
improve above our revised expectations given that WeWork continues
to negotiate with the borrower and, as of August 2023, there is
approximately $4.9 million in various lender-controlled reserve
accounts;
-- The significant market value decline using the updated April
2023 appraisal value of $183.0 million (a 47.6% decline from the
issuance appraisal value of $349.0 million) that would need to
occur before these classes experience principal losses;
-- The liquidity support provided in the form of servicer
advancing; and
-- The relative position of these classes in the payment
waterfall.
As S&P discussed, the loan was transferred to the special servicer
on March 24, 2023, due to payment default. The special servicer,
Torchlight Loan Services LLC, stated that discussions, including
potential lease modification and workout proposals, are ongoing
with the borrower.
S&P said, "As part of the CreditWatch resolution, we will continue
to monitor the transaction for any further developments on WeWork,
servicer's advances, the loan resolution strategy and/or timing,
and changes in property performance. We expect to update or resolve
the CreditWatch placements upon the receipt of any material updates
related to the aforementioned items.
"The downgrade on the class X IO certificates reflects our criteria
for rating IO securities, in which the rating on the IO securities
would not be higher than that of the lowest-rated reference class.
The notional amount of the class X certificates references classes
A, B, C, and D."
Property-Level Analysis
The loan collateral includes a 20-story, 359,154-sq.-ft. class A-,
LEED Gold certified office tower and a three-level, 200-space,
subterranean parking garage located at 600 California St. in San
Francisco's Financial District office submarket. The office tower,
built in 1991, includes 10,655 sq. ft. of ground floor retail
space, an 11th-floor terrace, an atrium lobby, and column-free
floorplates. The sponsors are a collection of funds and related
entities comprised of several investors at issuance: Ivanhoe
Cambridge Inc. and related entities (48.8% of beneficial ownership
of the borrowers), a Eurasian sovereign wealth fund (29.1%), and
other investors (22.1%). The funds are managed by ARK Capital
Advisors LLC, an investment management vehicle held indirectly by
WeCo (an affiliate of tenant WeWork) and Rhone Group. WeCo holds a
3.4% beneficial ownership of the borrowers, while Rhone Group holds
2.2%.
The servicer, Midland Loan Services, reported a NCF of $16.7
million in 2022 and 2021; however, as we previously mentioned, the
property's occupancy rate dropped further in 2023 as rolling
tenants vacated and the borrower was not able to backfill the
vacant space in a timely manner. Additionally, WeWork stopped
paying rent in March 2023.
As of the July 2023 rent roll, the property was 77.5% leased and
the five largest tenants comprised 75.9% of the NRA and included:
-- WeWork (51.7% of NRA; $92.17 per sq. ft. in-place gross rent,
as calculated by S&P Global Ratings; March 2035 lease expiration).
S&P assumed a lower gross rent of $80.77 per sq. ft., comparable to
current office submarket metrics, in its analysis;
-- Cardinia Real Estate LLC (11.6%, $77.22 per sq. ft., May 2025).
According to CoStar, the tenant's space is currently marketed for
sublease;
-- Bridge Housing Corp. (5.8%, $89.45 per sq. ft., March 2024);
-- International Training & Exchange Inc. (5.7%, $70.51 per sq.
ft., December 2024); and
-- Preferred Bank (1.0%, $79.02 per sq. ft., February 2027).
According to CoStar, as of year-to-date August 2023, the four- and
five-star office properties in the Financial District submarket
have a 27.1% vacancy rate, 31.6% availability rate, and $60.07 per
sq. ft. asking rent compared to a 7.1% vacancy rate and $79.42 per
sq. ft. asking rent in 2019. CoStar projects vacancy to increase to
36.5% in 2024 and 40.9% in 2025, and asking rent to decrease to
$49.31 per sq. ft. and $45.58 per sq. ft. for the same period. This
compares with 77.5% vacancy and $78.38 per sq. ft. gross rent, as
calculated by S&P Global Ratings, using the servicer-reported 2022
operating performance data for the properties and the July 1, 2023,
rent roll. Because the special servicer, Torchlight Loan Services,
reports that WeWork is seeking to return 36,800 sq. ft. (10.2% of
NRA), our current analysis considers this space to be vacant, and
S&P has marked down WeWork's rent for its entire 186,130-sq.-ft.
leased space from a contractual base rate of $86.40 per sq. ft. to
$75.00 per sq. ft.
Transaction Summary
The five-year, fixed-rate, IO mortgage loan had an initial and
current balance of $240.0 million (according to the Aug. 11, 2023,
trustee remittance report), pays an annual fixed interest rate of
4.0%, and matures on Sept. 6, 2024. The loan has a reported
90-plus-days delinquent payment status. Based on the April 2023
appraisal value of $183.0 million, a $73.9 million appraisal
reduction amount (ARA) was in effect as of June 2023, resulting in
a cumulative appraisal subordinate entitlement reduction amount of
$755,484 to date. The ARA caused classes E, F, G, and H (not rated
by S&P Global Ratings) to experience interest shortfalls totaling
$980,662 for three consecutive months. There is no additional debt,
and the trust has not incurred any principal losses to date.
Ratings Lowered And Placed On CreditWatch Negative
GSCG Trust 2019-600C
Class A to 'AA (sf)/Watch Neg' from 'AAA (sf)'
Class B to 'A (sf)/Watch Neg' from 'AA- (sf)'
Class C to 'BB (sf)/Watch Neg' from 'BBB (sf)'
Class D to 'B (sf)/Watch Neg' from 'BB (sf)'
Class X to 'B (sf)/Watch Neg' from 'BB (sf)'
I.C. ELECTRIC: Files Emergency Bid to Use Cash Collateral
---------------------------------------------------------
I.C. Electric, Inc. asks the U.S. Bankruptcy Court for the Western
District of Pennsylvania for authority to use cash collateral and
provide adequate protection.
Cash flow from operations are sufficient to cover all of the
Debtor's operating expenses in the amounts set forth in the interim
budget.
The Debtor is a party to: (i) Promissory Note in the amount of
$50,000; (ii) a Commercial Security Agreement by and between the
Debtor as the borrower and First National Bank of Pennsylvania as
the Lender both dated January 15, 2010.
The Promissory Note was amended pursuant to two Amendments dated
December 21, 2011 and August 15, 2013, which increased the
principal amount of the Loan to $150,000.
FNB asserts that the current balance owed on the Loan is
approximately $151,807.
The Loan is payable on demand, and FNB exercised its right to
demand immediate payment of the Loan on or about August 3, 2023.
FNB filed a UCC-1 Financing Statement with the Pennsylvania
Department of State on January 25, 2010, Financial Statement No.
2010012501100, listing the Debtor as the debtor and FNB as a
secured party.
The U.S. Small Business Administration filed a UCC-1 Financing
Statemnet with the Pennsylvania Department of State on July 25,
2020 Financial Statement No. 2020072500269 listing Debtor as the
debtor and SBA as a secured party.
The Debtor believes that the SBA UCC-1 was filed due to a Payroll
Protection Program Loan that the Debtor received in 2020. The
Debtor submits that all paperwork to have the PPP Loan forgiven was
been filed. The Debtor's books and records do not reflect that any
monies are owed to the SBA.
Bank Capital Services, LLC filed a UCC-1 Financing Statement with
the Pennsylvania Department of State on January 12, 2021 Financial
Statement No. 2021011202286 listing Debtor as a debtor an BCS as a
secured party.
The Debtor proposes to provide to FNB, BCS, and the SBA the
following adequate protection for the use of cash collateral:
(a) An additional or replacement lien, in an amount equal to
the decrease in the value of FNB's SBA and BCS’s current interest
in cash collateral as a result of the Debtor's use of the same
during the Interim Cash Collateral Period, in post-petition
property of the Debtor of the same nature, to the same extent and
of the same priority that FNB, the SBA, and BCS had in the
pre-petition property of the Debtor; and
(b) To the extent the Replacement Liens fail to protect FNB,
SBA, and BCS from any decrease in the value of their interests in
cash collateral, then FNB, the SBA, and BCS will be entitled to an
administrative claim with priority over any other administrative
claim allowable under 11 U.S.C. section 507(a)(2) and 503(b),
except the allowable administrative claims of estate/Debtor
professionals awarded in accordance with Section 330 of the
Bankruptcy Code.
A copy of the motion is available at https://urlcurt.com/u?l=wEbrhv
from PacerMonitor.com.
About I.C. Electric, Inc.
I.C. Electric, Inc. is the owner and operator of an electric
company that provides electrical contracting services.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Pa. Case No. 23-10414-JCM) on August
10, 2023. In the petition signed by Jerry Zreliak, president, the
Debtor disclosed up to $50,000 in assets and up to $10 million in
liabilities.
Crystal H. Thornton-Illar, Esq., at Leech Tishman Fuscaldo & Lampl,
LLC, represents the Debtor as legal counsel.
INMET MINING: Exclusivity Period Extended to December 3
-------------------------------------------------------
Judge Gregory R. Schaaf of the U.S. Bankruptcy Court for the
Eastern District of Kentucky extended Inmet Mining, LLC's
exclusive periods during which only the Debtor may file a chapter
11 plan and solicit acceptances thereof to December 3, 2023 and
February 2, 2024, respectively.
Inmet Mining, LLC is represented by:
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 Debtor's claims,
noticing and solicitation agent and administrative advisor.
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.
J & D RESTAURANT: Has Deal on Cash Collateral Access
----------------------------------------------------
J & D Restaurant Group, LLC and the U.S. Small Business
Administration advised the U.S. Bankruptcy Court for the District
of Arizona that they have reached an agreement regarding the use of
cash collateral and now desire to memorialize the terms of this
agreement into an agreed order.
Prior to the Petition Date, on May 15, 2020, the Debtor executed an
SBA Note, pursuant to which the Debtor obtained a loan in the
amount of $150,000. The terms of the Note require the Debtor to pay
principal and interest payments of $731 every month beginning 12
months from the date of the Note over the 30 year term of the SBA
Loan. The SBA Loan has an annual rate of interest of 3.75% and may
be prepaid at any time without notice of penalty.
As evidenced by the Security Agreement and a validly recorded UCC-1
filing on May 30, 2020 as Filing Number 2020-003-0815-6, the SBA
Loan is secured by all tangible and intangible personal property.
The SBA has agreed to permit the Debtor to use cash collateral
consistent with the terms and conditions set forth below, all of
which have been negotiated at arms length for reasonably equivalent
value and are fair and reasonable under the circumstance.
The Parties agree that any and all of the Personal Property
Collateral constitutes the cash collateral of the SBA, pursuant to
11 U.S.C. Section 363(a).
The Debtor represents to the SBA that it will make no additional or
unauthorized use of the cash collateral retroactive from the
Petition Date until November 27, 2023, or the entry of an Order
Confirming the Debtor's Plan of Reorganization, whichever occurs
earlier, for ordinary and necessary expenses as set forth in the
projections, with a 10% variance.
The Debtor's use of cash collateral may be renewed upon subsequent
stipulation with SBA or by order of the Court.
As adequate protection, retroactive to the Petition Date, SBA will
receive a replacement lien on all post-petition revenues of the
Debtor to the same extent, priority, validity, and enforceability
that its lien attached to the cash collateral as of the Petition
Date. The scope of the replacement lien is limited to the amount
(if any) that cash collateral diminishes post-petition as a result
of the Debtor's post-petition use of cash collateral. The
replacement lien is valid, perfected and enforceable and will not
be subject to dispute, avoidance, or subordination, and this
replacement lien need not be subject to additional recording.
The Debtor agrees to maintain insurance on the Personal Property
Collateral and to designate SBA as a loss payee or additional
insured in accordance with the SBA Loan and related loan documents
and agrees to provide proof of insurance within seven days upon
written request of SBA.
A copy of the stipulation and the Debtor's budget is available at
https://urlcurt.com/u?l=Vtv84Z from PacerMonitor.com.
The Debtor projects $90,000 in gross income and $89,499 in total
expenses for one month.
About J & D Restaurant
J & D Restaurant Group, LLC filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. D. Ariz. Case No.
23-05054) on July 27, 2023, with $50,001 to $100,000 in assets and
$500,001 to $1 million in liabilities. Judge Daniel P. Collins
oversees the case.
Allan D. NewDelman, Esq., at Allan D. NewDelman, P.C. represents
the Debtor as legal counsel.
JDI DATA: Court OKs Cash Collateral Access Thru Nov 18
------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Florida,
Fort Lauderdale Division, authorized Scott N. Brown, the trustee of
JDi Data Corporation, to use cash collateral on an interim basis
through November 18, 2023, in the manner set forth in the budget,
with a 25% variance.
As previously reported by the Troubled Company Reporter, the Debtor
requires the use of cash collateral to:
a. pay its secured creditor, the U.S. Small Business
Administration, its monthly due. The SBA Loan was for $1.8 million.
The SBA has a UCC-1 recorded in the Secured Transaction Registry in
Florida, which is the State of Incorporation for the Debtor;
b. pay all necessary utilities, including remote cloud
services provided by AWS;
c. pay all applicable taxes and insurances; and
d. otherwise remain compliant with its current monthly
operational expenses.
The SBA appears to be the Debtor's only secured creditor but the
Debtor's management is verifying the execution of a Security
Agreement to the UCC-1, which was recorded on September 5, 2020,
being owed the principal sum of $1.8 million plus applicable
interest. Although the SBA retains a blanket UCC-1 interest in the
Debtor's personal property, the Debtor proposed to provide adequate
protection to the SBA in the form of regular monthly payments due
under the note, or in a lesser amount as agreed upon.
The Court ruled that, to the extent it is determined the SBA
possesses a valid, perfected, enforceable, and otherwise
non-avoidable lien, as adequate protection for the Trustee's use of
the SBA's cash collateral, the SBA is granted a replacement lien
pursuant to 11 U.S.C. section 361(2) with the same validity and
priority as its prepetition lien attached to the prepetition
collateral.
The Replacement Lien granted will be at all times subject and
junior to all unpaid fees due to the Office of the United States
Trustee pursuant to 28 U.S.C. section 1930; and all unpaid fees
required to be paid to the Clerk of the Bankruptcy Court.
A continued hearing on the matter is set for November 8, 2023 at
1:30 p.m.
A copy of the order is available at https://urlcurt.com/u?l=NcFhyU
from PacerMonitor.com.
About JDi Data Corporation
JDi Data Corporation has developed innovative solutions for
professionals within the insurance, risk, and legal communities.
Its software solutions are designed to allow organizations to
invest in tools that truly transform their day-to-day processes.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 23-11322) on February
17, 2022. In the petition signed by John Heller as CRO, the Debtor
disclosed up to $10 million in both assets and liabilities.
Judge Scott M. Grossman oversees the case.
Scott M. Grossman, Esq., at Moffa & Bierman, represents the Debtor
as legal counsel.
KAF RECYCLING: Unsecureds Will Get 13.6% of Claims in Plan
----------------------------------------------------------
KAF Recycling Corp., filed with the U.S. Bankruptcy Court for the
Southern District of Florida an Amended Plan of Reorganization
dated August 14, 2023.
The Debtor is a family-owned and family-operated company operating
in Miami-Dade County, Florida since 2009. The Debtor specializes in
recycling, processing and packaging (for resale) scrap metal.
The Debtor also purchases junked cars for that purpose. The Debtor
is located at 12750 Alexandria Drive, Opa-Locka, Florida 33054 in
Miami-Dade County, Florida.
The Plan Proponent's financial projections show that the Debtor
will have sufficient projected disposable income to make all
payments under the Plan. The final Plan payment is expected to be
paid on or before the expiration of 36 months from the Effective
Date.
This Plan proposes to pay Allowed Claims no less than the value of
KAF's Net Disposable Income for a period of 36 months. The Plan
provides for 8 Classes of creditor claims (including priority,
secured, and unsecured) and one Class of Equity interests.
Class 3 consists of Allowed General Unsecured Claims. The
Reorganized Debtor will make a pro rata semi-annual distribution to
holders of timely-filed Allowed Claims in Class 3 in the aggregate
amount of $100,000.00 starting on or before the second anniversary
of the Effective Date. The total aggregate amount of timely-filed
Allowed Class 3 Claims (including the SBA's deficiency claim) is
approximately $736,000, resulting in an approximate $13.6%
distribution to timely-filed Allowed Class 3. Class 3 is Impaired.
Class 4 consists of Equity Interests of Coralia Y. Cabrera and
Yosvany Cabrera in KAF. On the Effective Date, the Equity Interests
will be retained in the same amounts and character as they were
held prior to the Petition. Class 4 is deemed to accept and not
entitled to vote.
On the Effective Date, all property of the Debtor not otherwise
disposed of under the Plan, shall vest with the Reorganized
Debtor.
The Plan proposes to pay Allowed Claims to be paid under the Plan
from Net Disposable Income.
The Debtor's Net Disposable Income means all excess cash from the
Debtor's income after: (i) payment in full of all Allowed
Administrative Claims; (ii) payment of Allowed Secured Claims;
(iii) payment in of monthly ordinary course of business operating
expenses; and (iv) a set aside of an operational reserve equal to 3
days of operating expenses (approx. $45,000).
A full-text copy of the Amended Plan of Reorganization dated August
14, 2023 is available at https://urlcurt.com/u?l=z1YxSB from
PacerMonitor.com at no charge.
Counsel for the Debtor:
Jacqueline Calderin, Esq.
Agentis PLLC
55 Alhambra Plaza, Suite 800
Coral Gables, FL 33134
Telephone: (305) 722-2002
Email: jc@agentislaw.com
About KAF Recycling Corp
KAF Recycling Corp is a family-owned and family-operated company
which r specializes in recycling, processing and packaging (for
resale) scrap metal.
The Debtor sought protection for relief under Chapter 11 of the
Bankruptcy Code (Bankr. S.D. Fla. Case No. 23-12973) on April 17,
2023, listing $100,001 to $500,000 in assets and $500,001 to $1
million in liabilities. Jacqueline Calderin, Esq. at Agentis PLLC
represents the Debtor as counsel.
KEVIN CONCANNON: Court OKs Interim Cash Collateral Access
---------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas,
Houston Division, authorized Kevin Concannon, LLC d/b/a Lifeline
Pharmacy to use cash collateral on an interim basis in accordance
with the budget.
The Debtor is permitted to use cash collateral to: (a) pay employee
wages, expenses and benefits as set forth in the Order Authorizing
the Debtor to (I) Pay Prepetition Wages, Salaries, Other
Compensation and Reimbursable Expenses and (II) Continue Employee
Benefits Programs and (B) Granting Related Relief; and (b) to
purchase inventory from McKesson up to the amount of $435,000
during the week ending August 12, 2023 and $576,000 during the week
ending August 19, 2023, as reflected in the budget.
As adequate protection for any diminution in value of Lifeline
Pharmacy 1, LLC's interest, if any, in the cash collateral,
Lifeline will receive a super priority administrative claim solely
to the extent of such diminution in value in the same nature,
priority, and extent of such party's prepetition interest in the
cash collateral.
A copy of the order is available at https://urlcurt.com/u?l=x9NIkC
from PacerMonitor.com.
About Kevin Concannon, LLC
Kevin Concannon, LLC is a locally-owned pharmacy serving the
Edinburg, Mcallen, Mission, San Juan, Alamo, Elsa, Alton, Weslaco,
Pharr, Hidalgo, Mercedes, Donna, Palmview, La Joya, Penrtas,
Palmhurst and the surrounding areas.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Case No. 23-90759) on August 2,
2023. In the petition signed by Kevin Concannon, manager, the
Debtor disclosed up to $50 million in both assets and liabilities.
Judge Christopher M. Lopez oversees the case.
Patrick J. Neligan Jr., Esq., at Neligan LLP, represents the Debtor
as legal counsel.
KEYS CONTRACTING: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Keys Contracting Services, Inc.
935 107th Street Gulf
Marathon, FL 33050
Business Description: The Debtor is a construction company that
specialize in modular homes, remodeling,
pools, water & plumbing, custom homes, and
commercial buildings.
Chapter 11 Petition Date: August 19, 2023
Court: United States Bankruptcy Court
Southern District of Florida
Case No.: 23-16607
Debtor's Counsel: David R. Softness, Esq.
DAVID R. SOFTNESS, PA
201 South Biscayne Boulevard
Suite 2740
Miami, FL 33131
Tel: 305-341-3111
Email: david@softnesslaw.com
Total Assets: $231,262
Total Liabilities: $2,510,001
The petition was signed by J. Chris Gratton as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/RYIYG4A/Keys_Contracting_Services_Inc__flsbke-23-16607__0001.0.pdf?mcid=tGE4TAMA
LA FAMILIA: Wins Cash Collateral Access Thru Oct 22
---------------------------------------------------
The U.S. Bankruptcy Court for the District of Mexico authorized La
Familia Primary Care, P.C. to use cash collateral in accordance
with the budget, through October 22, 2023.
As of the Petition Date, the Debtor may be indebted to Bankers
Healthcare Group, LLC pursuant to certain loan documents.
Pursuant to the BHG Prepetition Loan Documents, the Debtor may have
granted BHG security interests in property of the Debtor that
includes accounts receivable, accounts or other cash collateral.
As of the Petition Date, the Debtor may be indebted to the United
States Small Business Administration pursuant to EIDL loan
documents, including a UCC Financing Statement filed with the NMSOS
on May 15, 2020.
Pursuant to the SBA Prepetition Loan Documents, the Debtor may have
granted the SBA security interests in the Prepetition Collateral,
which is inferior to the security interests of BHG. Pursuant to
Setions 363(c) of the Bankruptcy Code, Debtor seeks the use of the
Prepetition Collateral constituting cash collateral in the manner
provided for in the Order.
The Debtor is permitted to use cash collateral for only the
expenses approved by the Order, listed in the budget, or to which
additional expenses BHG, the SBA, and the Debtor mutually agree in
their respective sole discretion.
As adequate protection to BHG and the SBA, the Debtor grants BHG
and the SBA replacement liens in an amount equal to and in the same
priority as they had as of the Petition Date to the extent that
each had a properly perfected security interest in cash collateral
as of the Petition Date.
The Debtor is also authorized to make monthly cash payments to BHG
in the amount of $2,338, and to the SBA in the amount of $175, as
shown in the budget. The Debtor will pay immediately when due all
personal property taxes that accrue post-petition. The Debtor will
maintain general business, liability, and malpractice coverage and
will continue to maintain and protect all Prepetition Collateral
consistent with the BHG and SBA Prepetition Loan Documents.
A copy of the court's order is available at
https://urlcurt.com/u?l=XFt2OQ from PacerMonitor.com.
About La Familia Primary Care, P.C.
La Familia Primary Care, P.C. sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D. N.M. Case No. 23-10566-t11) on
July 19, 2023. In the petition signed by Misbah Zmily, president,
the Debtor disclosed up to $500,000 in assets and up to $10 million
in liabilities.
Judge David T. Thuma oversees the case.
Shay Meagle, Esq., at Business Law Southwest, represents the Debtor
as legal counsel.
LANCASTER HOSPITALITY: Case Summary & 20 Top Unsecured Creditors
----------------------------------------------------------------
Debtor: Lancaster Hospitality, LLC
2041 Schorrway Drive NW
Lancaster OH 43130
Business Description: The Debtor is part of the traveler
accommodation industry.
Chapter 11 Petition Date: August 18, 2023
Court: United States Bankruptcy Court
Southern District of Ohio
Case No.: 23-52862
Judge: Hon. Mina Nami Khorrami
Debtor's Counsel: David Beck, Esq.
CARPENTER LIPPS LLP
280 N. High St., Suite 1300
Columbus OH 43215
Tel: 614-365-4142
Email: beck@carpenterlipps.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Abijit Vasani as president.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/ESU3HZA/Lancaster_Hospitality_LLC__ohsbke-23-52862__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Itria Ventures LLC Monies Loaned/ $1,340,200
One Penn Plaza Advanced
Suite 3101
New York, NY 10119
2. Hilton Services $41,030
4649 Paysphere Circle
Chicago, IL 60674
3. Capital One Credit Card $16,998
PO Box 4069 Debt
Carol Stream, Il 60197-4069
4. Nimble Accounting Services $15,000
200 Motor Parkway
Suite D-26
Hauppauga, NY 11788
5. HD Supplies Credit Card Debt $9,702
PO Box 509058
San Diego, SC 92150-9058
6. Sysco Foods Suppliers or Vendors $8,513
10510 Evendale Dr.
Cincinnati, OH 45241
7. AEP Utility Services $4,800
AEP, PO Box 371496
Pittsburgh, NH 15250
8. Windstream Credit Card Debt $3,800
PO Box 9001013
Louisville, NY 40290
9. Uline Suppliers or Vendors $3,561
PO Box 88741
Attn: AR
Chicago, IL 60680
10. Helms Briscoe Suppliers or Vendors $2,058
20875 N 90th Place
Suite 210
Scottsdale, AZ 85255
11. City of Lancaster- Utility Services $2,000
Lancaster Utilities
104 E Main St.
PO Box 1099
Lancaster,OH 43130
12. Travel Click Suppliers or Vendors $1,958
200 N Martingale
Suite 650
Schaumburg, IL 60173
13. ECOLAB Suppliers or Vendors $1,452
PO Box 32027
New York, NY 10087-2027
14. City of Lancaster - Utility Services $1,400
Lancaster Utilities
104 E Main St.
PO Box 1099
Lancaster, OH 43130
15. Charter Communications Utility Services $1,400
PO Box 6030
Carol Stream, IL 60197
16. Xpress Management Credit Card Debt $1,137
PO Box 910801
Lexington, NY 40591
17. City of Lancaster- Utility Services $1,100
Lancaster Utilities
104 E Main St.
PO Box 1099
Lancaster, OH 43130
18. Charter Communications Credit Card Debt $850
PO Box 6030
Carol Stream, IL 60197
19. Knight Capital Funding Credit Card Debt $0
9 E, Lockerman Street, Suite 202-542
Dover, DE 19901
20. U.S. Small Business Credit Card Debt $0
Administration
Office of the General Counsel
409 Third Street, SW
Washington, DC 20416
LINDELL LLC: Files Emergency Bid to Use Cash Collateral
-------------------------------------------------------
Lindell LLC asks the U.S. Bankruptcy Court for the District of
Massachusetts for authority to use cash collateral, specifically
revenue generated by the Debtor's real estate, on an emergency
basis.
The piece of real estate owned by the Debtor is located at 525
Lindell Avenue, Leominster, Massachusetts. This property has a
single residential building on it.
The Debtor requires the use of cash collateral to fund ongoing
operations and business expenses.
Turner Investment Trust asserts that it is owed in excess of
$400,000 by Lindell LLC. Turner has a secured mortgage on the 525
Lindell Avenue property and may assert a cash collateral lien on
rents and proceeds from that property.
L & C Resources, Inc. may assert that it is owed approximately
$160,000 by Lindell LLC. L & C has a secured mortgage on the 525
Lindell Avenue property and may assert a cash collateral lien on
rents and proceeds from that property.
Steve Alfonsi may assert that he is owed approximately $45,000 by
Lindell LLC. Alfonsi has a secured mortgage on the 525 Lindell
Avenue property and may assert a cash collateral lien on rents and
proceeds from that property.
A copy of the motion is available at https://urlcurt.com/u?l=Bma08j
from PacerMonitor.com.
About Lindell LLC
Lindell LLC is a real estate holding company. The Debtor sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.
Mass. Case No. 23-40608 ) on February 27, 2023. In the petition
signed by David Murphy, manager, the Debtor disclosed up to
$500,000 in both assets and liabilities.
James P. Ehrhard, Esq., at Ehrhard & Associates, P.C., represents
the Debtor as legal counsel.
LONE WOLF: Files Emergency Bid to Use Cash Collateral
-----------------------------------------------------
Lone Wolf Equipment Rental Inc. asks the U.S. Bankruptcy Court for
the Southern District of Texas, Houston Division, for authority to
use cash collateral and provide adequate protection.
The Debtor seeks to use cash collateral as working capital in the
operation of its business for the purposes specified in, and at
least for the period defined in, the budget.
The financial distress of the Debtor was precipitated by the
relocation of the business to Houston from Utah, and the Debtor,
therefore, had to find their footing in the new market.
Additionally, the unavailability of machinery due to repairs
required on rental equipment resulted in a decline in income for
the Debtor.
John Deere and Wells Fargo Vendor Financial Services assert an
interest in the Debtor's receivables and cash through a filed UCC-1
Financing Statements.
As adequate protection for the diminution in value of cash
collateral, the Debtor will (i) provide monthly adequate protection
payments, (ii) maintain the value of its business as a
going-concern, (iii) provide replacement liens upon now owned and
after acquired cash to the extent any diminution in value of cash
collateral, and (iv) provide super priority administrative claims
to the extent any diminution of value of cash collateral.
A copy of the motion is available at https://urlcurt.com/u?l=0yUasi
from PacerMonitor.com.
About Lone Wolf Equipment Rental Inc.
Lone Wolf Equipment Rental Inc. rents commercial excavating
equipment to various businesses in the Houston TX area.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Case No. 23-33015) on August 7,
2023. In the petition signed by Chrasaun D Johnson, president, the
Debtor disclosed up to $500,000 in both assets and liabilities.
Susan Tran Adams, Esq., at Tran Singh, LLP, represents the Debtor
as legal counsel.
LUXE SPACES: Unsecureds Will Get 65.74% of Claims in Plan
---------------------------------------------------------
Luxe Spaces, LLC, submitted a First Amended Subchapter V Plan of
Reorganization dated August 14, 2023.
The Debtor has formulated a plan of reorganization. Under the Plan,
the Debtor intends to distribute the Cash generated from the
operation of its corporate housing business to Holders of Allowed
Claims.
The Plan provides for the treatment of Claims and Interests as
follows:
* Allowed General Unsecured Claims will receive present value
of $521,134.17 which is approximately 65.74% of their Allowed
Claims;
* The Allowed Secured Claims of the SBA and ODK will be paid
in full;
* The Allowed Claim of Brownstone will be bifurcated into
Secured and Unsecured components pursuant to Section 506(a) of the
Bankruptcy Code; and
* Holders of Interests will retain their membership interests
in the Debtor.
The Debtor proposes to pay all Allowed Claims with Cash on hand and
its Projected Disposable Income over the Commitment Period.
Class 1 consists of the SBA Secured Claim. Except to the extent the
SBA agrees to less favorable treatment, in full and final
satisfaction, settlement, release and discharge of an in exchange
for its Allowed Secured Claim, the SBA will paid an amount equal to
its allowed Secured Claim on the Effective Date from (i) the Cash
held by the Subchapter V Trustee pursuant to the Cash Collateral
Order and (ii) the Debtor's Cash on hand.
The Debtor estimates that the Allowed amount of the SBA's Secured
will be approximately $42,200 on the Effective Date. The Subchapter
V Trustee is holding approximately $32,200 pursuant to the Cash
Collateral Order. Thus, the Debtor will pay the SBA an additional
$10,000 (estimated) on the Effective Date in full and final
satisfaction, settlement, release and discharge of an in exchange
for its Allowed Secured Claim.
Class 3 consists of the Brownstone Secured Claim. Except to the
extent Brownstone agrees to less favorable treatment, in full an
final satisfaction, settlement, release and discharge of an in
exchange for its Allowed Secured Claim, the Brownstone Secured
Claim shall be Allowed in the amount of $21,000.00 and Brownstone
shall receive the amount of such Allowed Claim over a period of 3
years from the Effective Date, with interest at the rate of 9.0%
per annum, in equal monthly payments beginning on the first
business day of the first calendar month that follows the Effective
Date and continuing on the first business day of each calendar
month thereafter. After the satisfaction of the SBA's Secured
Claim, the Brownstone Secured Claim shall be Secured by a
second-priority Lien on the Debtor's accounts.
Pursuant to Section 506 of the Bankruptcy Code, the balance of
Brownstone's aggregate Allowed Claim, approximately $120,000, shall
be treated in accordance with Class 4 as an Allowed General
Unsecured Claim.
Class 4 consists of General Unsecured Claims. Except to the extent
that the Holder of an Allowed General Unsecured Claim agrees to
less favorable treatment, in full and final satisfaction,
settlement, release and discharge of an in exchange for each
Allowed General Unsecured Claim, each Holder shall receive, up to
the Allowed amount of such Claim:
* during months 13 through 24 of the Commitment, a Pro Rata
share of 12 monthly payments of $4,250.00;
* During months 25 through 36 of the Commitment Period, a Pro
Rata Share of 12 monthly payments of $12,000.00;
* During months 37 through 48 of the Commitment Period, a Pro
Rata Share of 12 monthly payments of $14,500.00;
* During months 49 through 60 of the Commitment Period, a Pro
Rata Share of 12 monthly payments of $17,000.00; and
* a Pro Rata share of 50.0% of the net proceeds of any Causes
of Action, including Avoidance Actions, in accordance with the
waterfall provision.
Class 4 is Impaired under the Plan. Holders of General Unsecured
Claims are entitled to vote to accept or reject the Plan.
Funds needed to make Cash payments on or before the Effective Date
under the Plan shall come from Cash on hand and/or the operations
of the Debtor's corporate housing business. All payments on and/or
after the Effective Date shall be made by Reorganized Debtor from
Cash on hand and/or the operations of the Debtor's corporate
housing business.
In addition to monthly Cash distributions after the Effective Date,
the Reorganized Debtor shall distribute 50.0% of the net proceeds
of any Causes of Actions, including Avoidance Actions, to Holders
of certain Claims until paid in full in the following priority (in
each case on a Pro Rata Basis): (a) first, on account of Allowed
Administrative Claims; (b) second, on account of any Cure Claims;
(c) third, on account of any Allowed General Unsecured Claims; and
(d) fourth, the Debtor. "Net proceeds" means gross recoveries from
any Causes of Action, including Avoidance Actions, after payment of
any attorneys' fees, filing fees and other costs and expenses
related to the prosecution of such Causes of Action.
A full-text copy of the First Amended Plan dated August 14, 2023 is
available at https://urlcurt.com/u?l=OrkQi6 from PacerMonitor.com
at no charge.
Attorneys for Luxe Spaces:
STERNBERG, NACCARI & WHITE, LLC
Ryan J. Richmond, Esq.
Ashley M. Caruso, Esq.
251 Florida Street, Suite 203
Baton Rouge, LA 70801-1703
Tel. (225) 412-3667
Fax (225) 286-3046
Email: ryan@snw.law
ashley@snw.law
About Luxe Spaces, LLC
Luxe Spaces, LLC is a Baton Rouge, La.-based corporate housing
company. Luxe Spaces leases apartments, houses, condos, townhomes,
etc. and then sublets them to, among others, film and televisions
production companies, governmental agencies such as FEMA, and
private businesses looking to temporarily house their executives.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. La. Case No. 23-10042) on January 18,
2023. In the petition signed by Stephanie R. Clarke, manager, the
Debtor disclosed up to $500,000 in assets and up to $1 million in
liabilities.
Judge Michael A. Crawford oversees the case.
Ryan J. Richmond, Esq., at Sternberg, Naccari & White, LLC, is the
Debtor's legal counsel.
MAFIC USA: Asset Auction Scheduled for August 22
------------------------------------------------
On August 22, 2023, Iron Horse Auction Co., Inc. of Rockingham, NC
will conduct a two-part sealed bid auction of essentially all
assets of Mafic USA LLC.
The assets include a state-of-the-art 45,780 +/- sq. ft. basalt
manufacturing facility on 5.09 +/- acres and an adjoining 7.59 +/-
acre tract. The facility is located at 119 Metrolina Dr., Shelby,
NC 28150. Personal property included in the sale consists of all
machinery & equipment related to basalt fiber production, platinum
& rhodium bushings/loose metals, basalt rock inventory, and basalt
fiber inventory.
The North Carolina Business Court appointed Richard S. Wright of
Moon Wright & Houston, PLLC as general receiver for Mafic USA LLC
on May 11, 2023. The receiver retained Iron Horse to conduct an
orderly liquidation process.
Will Lilly, an executive with Iron Horse states, "It is a great
honor to represent the Receiver in this very important transaction.
We feel the custom-tailored orderly liquidation process is a rare
opportunity to purchase a basalt plant that could be put in
operation much faster than a startup project. The facility is truly
a state-of-the-art basalt fiber manufacturing facility that has
already gained the interest of international parties active in the
industry."
For further information about the sale process, go to
ironhorseauction.com/auction/mafic-68144/details or call:
800-997-2248.
For interviews, contact:
Will Lilly +1-704-985-9300 or
will@ironhorseauction.com
Iron Horse Auction Company, Inc.
174 Airport Road
Rockingham, NC 28379
910-997-2248
www.ironhorseauction.com
MAXIM CRANE: Moody's Hikes CFR to B2, Rates New $500MM Notes Caa1
-----------------------------------------------------------------
Moody's Investors Service upgraded Maxim Crane Works Holdings
Capital, LLC's corporate family rating to B2 from B3 and
probability of default rating to B2-PD from B3-PD. Moody's also
assigned a Caa1 rating to the company's planned offering of $500
million of senior secured second lien notes. The outlook is
stable.
Proceeds from the secured notes offering will be used to repay the
remaining $303 million of 10.125% senior secured second lien notes
due August 2024. The remainder of the proceeds will be used to
repay ABL borrowings making the transaction effectively leverage
neutral. The Caa1 rating on the 2024 notes remains unchanged and
will be withdrawn at the close of the transaction.
The upgrade of the corporate family rating to B2 from B3 reflects
the company's improving operating performance highlighted by
stronger margins and lower financial leverage. The upgrade also
reflects the improved liquidity and elimination of refinancing risk
following the repayment of the company's 2024 notes. Moody's
expects Maxim's profitability will continue to improve and
debt-to-EBITDA will decline as a result.
Assignments:
Issuer: Maxim Crane Works Holdings Capital, LLC
Senior Secured 2nd Lien Regular Bond/Debenture, Assigned Caa1
Upgrades:
Issuer: Maxim Crane Works Holdings Capital, LLC
Corporate Family Rating, Upgraded to B2 from B3
Probability of Default Rating, Upgraded to B2-PD from B3-PD
Outlook Actions:
Issuer: Maxim Crane Works Holdings Capital, LLC
Outlook, Remains Stable
RATINGS RATIONALE
Maxim is a leading consolidator of small regional and local crane
rental companies in a very fragmented industry. The company has a
good geographic footprint in the US with a coast-to-coast presence
and a diversified customer base. Maxim is also private equity owned
and has high debt-to-LTM EBITDA of 5.0 times at June 30, 2023.
However, leverage has come down substantially and Moody's expects
solid demand for cranes will continue to support rental utilization
rates. Together with higher pricing and cost containment, Maxim's
profitability will significantly improve and drive debt-to-EBITDA
to 4.5 times by the end of 2024. Despite the improvement, free cash
flow will be constrained by a fleet refresh that will cause a
significant increase in capex over the next few years.
Maxim's liquidity will be adequate, including roughly $500 million
of availability on a $1.209 billion ABL facility expiring in 2025.
In addition, the nearest notes maturity following the close of the
transaction will be 2028.
Maxim's capital structure will consist of $500 million of senior
secured second lien notes due 2028 that are rated Caa1, two notches
below the B2 CFR. The Caa1 rating reflects the notes subordination
to the $1.209 billion ABL revolver. The ABL revolver is secured on
a first priority basis by all of the equity interests of Maxim
directly held by Maxim Crane Works Holdings, Inc. (the holding
company) and substantially all the material owned assets of Maxim
and the subsidiary guarantors. The ABL is issued by Maxim and has
subsidiary guarantees.
The stable outlook reflects Moody's expectation that Maxim will
grow profitability while deleveraging such that debt-to EBITDA
improves toward 4.5 times over the next 12 to 18 months. Moody's
also expects liquidity to remain adequate with at least $300
million of ABL available at all times.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings could be upgraded if Maxim's debt-to-EBITDA approaches 4
times and funds from operations (FFO)-to-debt above 15%. Also, a
more conservative financial policy and improved liquidity,
including an increase in availability on the ABL, would also be
necessary for a rating upgrade.
Ratings could be downgraded if there is a deterioration in
liquidity, including increased reliance on the ABL, debt-to-EBITDA
is sustained above 5.5 times, or FFO-to-debt is sustained below
10%. Also, the ratings could be downgraded if the company makes a
large debt funded acquisition or dividend.
The principal methodology used in these ratings was Equipment and
Transportation Rental published in February 2022.
Maxim Crane Works Holdings Capital, LLC is a leading provider of
specialty crane rental services in the US. The company's
administrative headquarters is in Bridgeville, Pennsylvania, while
its operational headquarters are in Wilder, KY. Maxim rents cranes
and other heavy equipment primarily to non-residential building
construction and energy related end markets. The company is owned
and controlled by private equity firm Apollo Global Management,
Inc.
MAYBERRY FUNERAL: Seeks 90-Day Extension to File Plan
-----------------------------------------------------
Mayberry Funeral Home, LLC asks the U.S. Bankruptcy Court for the
Southern District of Alabama to extend the time to file their
plan by an additional 90 days from August 7, 2023.
The Debtor explained that it recently had a CPA approved by the
Court that will need an additional 4-6 weeks to file the required
tax returns. However, the Debtor claimed that it recently
contracted Covid and has been unable to provide additional
documentation to amend the schedules.
Mayberry Funeral Home, LLC is represented by:
James D. Patterson, Esq.
JAMES PATTERSON LLC
2153 Airport Boulevard
Mobile, AL 6606
Tel: (251) 432.9212
Email: jdp@jamespattersonlaw.com
About Mayberry Funeral
Mayberry Funeral Home, LLC filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. S.D. Ala. Case No.
23-11052) on May 8, 2023, with as much as $50,000 in assets and
$100,001 to $500,000 in liabilities. Terrie Owens has been
appointed as Subchapter V trustee.
Judge Jerry C. Oldshue oversees the case.
The Debtor is represented by James D. Patterson, Esq., at James
Patterson, LLC.
MIMEDX GRP: En Banc Rehearing Petition Remains Pending in Court
---------------------------------------------------------------
MIMEDX Group Inc. disclosed in its Form 10-Q Report for the
quarterly period ending June 30, 2023 filed with the Securities and
Exchange Commission on August 1, 2023, that the en banc rehearing
petition of the consolidated securities class suits remains pending
in the United States District Court for the Northern District of
Georgia.
On January 16, 2019, the United States District Court for the
Northern District of Georgia entered an order consolidating two
purported securities class actions (MacPhee v. MiMedx Group, Inc.,
et al. filed February 23, 2018 and Kline v. MiMedx Group, Inc., et
al. filed February 26, 2018).
The order also appointed Carpenters Pension Fund of Illinois
("CPFI") as lead plaintiff.
On May 1, 2019, CPFI filed a consolidated amended complaint, naming
as defendants the Company, Michael J. Senken, Parker H. "Pete"
Petit, William C. Taylor, Christopher M. Cashman and Cherry Bekaert
& Holland LLP.
The amended complaint (the "Securities Class Action Complaint")
alleged violations of Section 10(b) of the Securities Exchange Act
of 1934, as amended (the "Exchange Act"), Rule 10b-5 promulgated
thereunder, and Section 20(a) of the Exchange Act.
It asserted a class period of March 7, 2013 through June 29, 2018.
Following the filing of motions to dismiss by the various
defendants, CPFI was granted leave to file an amended complaint.
CPFI filed its amended complaint against the Company, Michael J.
Senken, Parker H. Petit, William C. Taylor, and Cherry Bekaert &
Holland (Christopher Cashman was dropped as a defendant) on March
30, 2020.
The defendants filed motions to dismiss on May 29, 2020.
On March 25, 2021, the Court granted defendants' respective motions
to dismiss, finding that CPFI lacked standing to bring the
underlying claims and also could not establish loss causation
because it sold all of its shares in the Company prior to any
corrective disclosures, and dismissed the case.
On April 22, 2021, CPFI filed a motion for reconsideration of the
dismissal and for leave to amend to add a new plaintiff to attempt
to cure the standing and loss causation issues.
On January 28, 2022, the Court denied CPFI's motion to reconsider
and motion to substitute class representative.
On February 25, 2022, CPFI filed a Notice of Appeal in the 11th
Circuit Court of Appeals.
On July 10, 2023, the Court of Appeals affirmed the District
Court's dismissal of the case and the denial of the motion for
leave to amend.
On July 31, 2023, CPFI filed a petition for rehearing en banc,
which remains pending.
MIMEDX is a transformational placental biologics company based in
Georgia.
MOUNTAINEER BRAND: Case Summary & 14 Unsecured Creditors
--------------------------------------------------------
Debtor: Mountaineer Brand, LLC
54 GM Access Rd
Martinsburg, WV 25403
Business Description: The Debtor manufactures and sells all
natural men's grooming products.
Chapter 11 Petition Date: August 18, 2023
Court: United States Bankruptcy Court
Northern District of West Virginia
Case No.: 23-00396
Debtor's Counsel: Martin P. Sheehan, Esq.
SHEEHAN & ASSOCIATES, P.L.L.C
1 Community St., Ste 200
Wheeling, WV 26003
Tel: 304-232-1064
Fax: 304-232-1066
Email: martin@msheehanlaw.net
Total Assets: $63,500
Total Liabilities: $2,481,721
The petition was signed by Eric Young as CEO.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 14 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/R7JK6KI/Mountaineer_Brand_LLC__wvnbke-23-00396__0001.0.pdf?mcid=tGE4TAMA
NEO ACCOUNTING: Court OKs Cash Collateral Access Thru Sept 21
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Ohio in
Akron, authorized NEO Accounting & Tax Services, LLC to continue
using cash collateral on an interim basis through September 21,
2023, to the extent set forth in the Second Interim Order as
amended thereby, and pursuant to the budget.
As previously reported by the Troubled Company Reporter, Prior to
the commencement of the Debtor's Chapter 11 case, the U.S. Small
Business Association and KeyBank National Association made loans
and advances to the Debtor, pursuant to the terms of several loan
agreements and promissory notes, with a total approximate balance
at the time of the bankruptcy filing of:
-- $1,945,700 to the SBA under an EIDL Loan; and
-- $1,796,916 to KeyBank under a Term Loan and $250,000 under
a Line of Credit.
The Debtor has stated that it desires to pursue a financial
restructuring in cooperation with the Lenders and the Debtor
believes the best method to effectuate the financial restructuring
is by means of chapter 11 proceedings.
The Debtor was permitted to use cash collateral, pursuant to the
terms and provisions of the Interim Order and pursuant to 11 U.S.C.
Section 363(c)(2)(B) and the budget; provided however, (i) draws to
the Debtors' owner in the amount of $10,000 per month without
increase during the term of the Interim Order; and (ii) nothing
will be deemed to authorize the payment of any amounts in
satisfaction of bonus or severance obligations, or which are
subject to 11 U.S.C. Section 503(c).
As adequate protection, the Lenders were granted: (i) valid,
binding, enforceable and perfected postpetition replacement liens
in the same validity, order of priority and extent (if any) as the
Lenders' prepetition security interests in all of the Debtor's
assets, including, but not limited to, raw materials,
work-in-process, inventory, accounts receivable, and cash,
excluding Avoidance Actions; and (ii) the Adequate Protection
Payments. The Adequate Protection Liens will secure an amount of
the Prepetition Indebtedness equal to the aggregate amount of cash
collateral expended during the Interim Period.
A further hearing on the matter is set for September 19, 2023 at 2
p.m.
A copy of the order is available at https://urlcurt.com/u?l=yKvf9N
from PacerMonitor.com.
The Debtor projects total expenses, on a monthly basis, as
follows:
$24,030 for August 2023;
$38,063 for September 2023;
$15,976 for October 2023;
$13,526 for November 2023; and
$13,063 for December 2023.
About NEO Accounting & Tax Services LLC
NEO Accounting & Tax Services LLC sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. N.D. Ohio Lead Case No.
23-50868) on June 27, 2023. In the petition signed by Brett J.
Mangon, managing member, the Neo disclosed $1,255,817 in total
assets and $4,188,118 in total liabilities.
Judge Alan M. Koschik oversees the case.
Anthony J. DeGirolamo, Esq., at Anthony J. DeGirolamo, Attorney at
Law, represents the Debtor as legal counsel.
NEW ERA CAP: Moody's Withdraws 'B1' CFR Following Debt Repayment
----------------------------------------------------------------
Moody's Investors Service withdrew all New Era Cap, LLC ratings,
including its B1 corporate family rating, B1-PD probability of
default rating, and B2 senior secured first lien term loan rating.
The outlook was changed to rating withdrawn from stable. These
withdrawals follow the repayment of its outstanding rated debt in
conjunction with the closing of a recent refinancing transaction.
Withdrawals:
Issuer: New Era Cap, LLC
Corporate Family Rating, Withdrawn, previously rated B1
Probability of Default Rating, Withdrawn, previously rated B1-PD
Senior Secured 1st Lien Term Loan, Withdrawn, previously rated B2
Outlook Actions:
Issuer: New Era Cap, LLC
Outlook, Changed To Rating Withdrawn From Stable
RATINGS RATIONALE
New Era has fully repaid its outstanding senior secured first lien
term loan using proceeds from a new unrated credit facility. All of
New Era's ratings have been withdrawn since its rated debt is no
longer outstanding.
Headquartered in Buffalo, New York, New Era Cap, LLC is engaged in
the design and global distribution of licensed and branded
headwear, apparel and accessories. The company generates most its
revenue from products sold under licenses with major league sports
leagues such as MLB, NFL and NBA, as well as media, entertainment,
other sports and partnerships. The company was founded in 1920 and
remains majority controlled by fourth generation owner and Chief
Executive Officer. Private equity firm ACON Investments is a
minority investor.
NEW YORK LAW: Moody's Affirms 'Ba1' Issuer Rating, Outlook Stable
-----------------------------------------------------------------
Moody's Investors Service has affirmed New York Law School's (NY)
Ba1 issuer rating. Concurrently Moody's also affirmed the Baa3
revenue bond rating. For fiscal 2022 (June 30) year end, NYLS had
$132 million in total debt outstanding. The outlook remains
stable.
RATINGS RATIONALE
The affirmation of New York Law School's Ba1 issuer rating reflects
several years of operating deficits and a high debt burden that is
balanced by strong financial reserves and valuable real estate
holdings. The school expects operating performance to be pressured
over the next few years, however fiscal 2024 targets will represent
a slight improvement relative to fiscal 2023. The rating
incorporates the expectation that the school will meet its
enrollment and net tuition revenue targets while also effectively
managing operating expenses in fiscal 2024. It also incorporates
reduced reliance on currently elevated endowment draws over time.
Favorably, a seasoned management team has implemented strategic
plans that they expect will gradually strengthen operating margins
and preserve wealth. The school currently holds solid financial
reserves and a robust liquidity profile. The school's location in
Tribeca will continue to be a credit strength with its real estate
holdings that are not fully incorporated in Moody's metrics but
secure its outstanding debt. Other credit challenges include a high
reliance on student charges and a highly competitive student market
in the niche legal education space.
The affirmation of the Baa3 debt rating, which is one notch above
the issuer rating, reflects the enhanced security features that
include a mortgage pledge on the main campus building for the
school.
RATING OUTLOOK
The stable outlook reflects expectations that NYLS will maintain
healthy financial reserves and will generate improved operating
results and debt service coverage of at least 0.7x in fiscal 2024.
The outlook also incorporates the absence of additional new debt
over the near term and expectations that NYLS will achieve
enrollment targets in Fall 2023.
FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS
-- Significant and sustained improvement in operating performance
-- Continued strengthening of liquidity and overall wealth levels
-- Improved strategic positioning reflected in enrollment and
gradual net tuition revenue growth
FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS
-- Failure to meet fiscal 2024 enrollment and net tuition revenue
objectives
-- Material reduction in unrestricted liquidity or flexible
reserves
-- Marked decline in market value of real estate
-- Material increase in leverage
LEGAL SECURITY
The bonds are secured by a loan agreement between Build NYC
Corporation and New York Law School. Payments under the loan
agreement are an unconditional obligation of the law school secured
by pledged revenues and a mortgage. NYLS has pledged a first lien
of gross revenues of the law school, excluding unrestricted and
restricted cash and investments as well as investment earnings on
the investments. Additional security is provided by a mortgage
pledge on 185 W. Broadway, which was appraised at $170 million in
October 2015. The entire campus, which consists of two additional
adjacent buildings, was appraised for $253 million. There is no
debt service reserve fund.
PROFILE
New York Law School, established in 1891, is one of the oldest and
largest independent law schools in the country. The law school's
campus resides in over 330,000 square feet in the Tribeca
neighborhood of New York City. The school enrolled 995 FTE students
as of fall 2022 and generated revenue of nearly $47 million in
fiscal 2022.
METHODOLOGY
The principal methodology used in these ratings was Higher
Education Methodology published in August 2021.
NOVATION COMPANIES: Unsecureds Will Get 100% of Claims in Plan
--------------------------------------------------------------
Novation Companies, Inc., and its Debtor Affiliates filed with the
U.S. Bankruptcy Court for the District of Delaware a Disclosure
Statement relating to Joint Prepackaged Plan of Reorganization
dated August 13, 2023.
Established on September 13, 1996, Novation was headquartered in
Kansas City, Missouri until June 2023, when it fully transitioned
its business operations to a virtual environment.
Specifically, the Debtors comprise: (a) holding companies (i.e.,
Novation Companies, Inc. and Novation Holding, Inc.); (b) a company
that historically engaged in various mortgage and securities-backed
lending (i.e., NovaStar Mortgage, LLC); and (c) a company that
operates a healthcare services staffing business (i.e., Healthcare
Staffing, Inc.), which is the Debtors’ only operating business.
On August 4, 2023, the Debtors executed that certain Restructuring
Support Agreement (as amended, restated, supplemented or otherwise
modified from time to time, the "RSA") with Nighthawks Holdings I,
LLC or any of its successors or assigns or any designees thereof
(the "Lead Plan Sponsor"), as lead acquirer, and HOMF II Distressed
Opportunities, Ltd. or any of its successors or assigns or any
designees thereof (together with the Lead Plan Sponsor, the "Plan
Sponsors"), as minority participant, and certain of the
Noteholders.
The RSA contemplates a restructuring of the Debtors in an in-court
transaction on the terms set forth in the RSA, including
consummation of the Plan. The transactions contemplated under the
RSA are intended, among other things, to restructure the 2017
Notes, unimpair holders of allowed general unsecured claims,
preserve the value of the Debtors' significant tax attributes, and
jump-start the HCS business.
Under the RSA, among other things, the Noteholders will exchange
their existing debt under the 2017 Notes for (a) certain preferred
stock in reorganized Novation; (b) 52.5% of the total issued and
outstanding common stock in reorganized Novation; and (c) certain
potential cash consideration under the terms of the RSA and the
Plan.
Among other things, the Plan Sponsors will fund the DIP Facility,
which shall be used to satisfy operational costs, other costs
associated with administering the Chapter 11 Cases, Allowed
Administrative Claims, Priority Tax Claims, Priority Non-Tax Claims
and Other Secured Claims (collectively, "Allowed SAP Claims"). The
DIP Facility will be refinanced (rather than satisfied in cash) on
the Plan effective date through an exit term loan.
Further, the Plan Sponsors will (a) provide for the unimpairment of
all Allowed General Unsecured Claims, which claims will be
satisfied in the ordinary course of business (or upon allowance) as
provided for in the RSA and the Plan; (b) pay the reorganized
Debtors up to $350,000 upon emergence, which amount will first be
available to satisfy Allowed SAP Claims under the Plan and other
costs associated with exiting chapter 11 as more fully described in
the Plan, and to extent any amounts remain available after doing
so, shall be distributed to the Noteholders; and (c) subject to
reduction on account of any Excess Claim Amounts paid by the Plan
Sponsor, fund an additional $625,000 in annual payments of
$125,000, commencing on the first business day of the 40th month
following the effective date of the Plan.
In exchange, the Plan Sponsors will receive, among other things,
(a) certain preferred stock in reorganized Novation; and (b) 47.5%
of the total issued and outstanding common stock in reorganized
Novation. In addition, Reorganized Novation and the Plan Sponsors
will enter into a management services contract and an
administration fee agreement following the effective date of the
Plan. In exchange for the Plan Sponsors' business management and
consulting services, among other things, the Plan Sponsors will
receive an annual administration and management fee in the amountof
$565,000, and warrants, options, or an alternative economically
equivalent arrangement on the terms set forth in the RSA and the
Plan.
The Debtors estimate that they have approximately $1.3 million in
trade payables and other unsecured claims outstanding as of the
Petition Date. These amounts are primarily owed to (a) vendors that
supply goods and services to HCS; (b) landlords for lease payments;
(c) governmental authorities on account of taxes and fees; (d)
insurers on account of policy premiums; and (e) employees for
services rendered to the Debtors.
Prior to the Petition Date, as discussed more fully below, the Plan
Sponsors provided the Debtors with the Pre-Bankruptcy Funding that
was critical to afford the Debtors the liquidity runway to prepare
for and commence the transactions contemplated under the terms of
the Plan and RSA. In the aggregate, pursuant to the PreBankruptcy
Funding, the Plan Sponsors loaned at least $1.285 million to the
Debtors on a fully unsecured basis as of the date hereof, and
agreed, pursuant to the RSA, to lend another $360,000 on a fully
unsecured basis between the date hereof and the Petition Date.
Class 4 consists of General Unsecured Claims. Except to the extent
that a Holder of an Allowed General Unsecured Claim agrees to
different treatment, each Holder of an Allowed General Unsecured
Claim shall receive, in full and complete satisfaction, and release
of and in exchange for such Allowed General Unsecured Claim, either
(i) the Allowed Amount of such Allowed General Unsecured Claim in
full in Cash on, or as soon thereafter as is reasonably
practicable, the later of the (a) Effective Date, (b) first
Business Day after the date that is 30 calendar days after the date
a General Unsecured Claim becomes an Allowed Claim, or (c) the date
that such Allowed General Unsecured Claim becomes payable in the
ordinary course of business; or (ii) such other treatment,
including reinstatement, as may render such Allowed General
Unsecured Claim Unimpaired. This Class is Unimpaired. This Class
will receive a distribution of 100% of their allowed claims.
The Plan and distributions thereunder will be funded by the cash
proceeds of the DIP Facility, to the extent the Debtors' ability to
borrow thereunder has not been exhausted, and the cash proceeds of
the Initial Preferred Stock Consideration. Additional consideration
provided under the Plan to the Plan Sponsor and Holders of
Noteholder Claims, in each case as provided for in the Plan,
includes any proceeds of the Initial Preferred Stock Consideration
that remain after the funding of the Exit Funding, any proceeds of
the Subsequent Preferred Stock Consideration that remain after any
reduction for the Plan Sponsor's payment of any Excess Claim
Amounts, the New Equity Interests, and the Warrants.
A full-text copy of the Disclosure Statement dated August 13, 2023
is available at https://urlcurt.com/u?l=rp1dzx from
PacerMonitor.com at no charge.
About Novation Companies
Novation Companies, Inc. and its subsidiaries, through Healthcare
Staffing, Inc., provide outsourced healthcare staffing and related
services in the state of Georgia.
The Debtor filed Chapter 11 Petition (Bankr. D. Del. Case No.
23-11153) on August 13, 2023, with $0 to $50,000 in assets and
$97,804,338 in liabilities. Michael Wyse, chief restructuring
officer, signed the petition.
Judge John T. Dorsey oversees the case.
YOUNG CONAWAY STARGATT & TAYLOR, LLP is the Debtor's legal counsel.
OBSIDIAN ENERGY: DBRS Confirms B(high) Issuer Rating
----------------------------------------------------
DBRS Limited confirmed the Issuer Rating and the Senior Unsecured
Notes (the Senior Notes) rating of Obsidian Energy Ltd. at B
(high). DBRS Morningstar also has a recovery rating of RR4 on the
Senior Notes. All trends are Stable. The Company's ratings are
supported by its (1) higher netbacks from its oil-weighted
production mix; (2) relatively lower decline rates, providing the
Company with the ability to flex capital expenditures (capex) in a
volatile price environment; (3) relatively stronger reserve
metrics; and (4) relatively stronger financial risk profile, which,
under DBRS Morningstar's base case commodity price assumptions,
provides an uplift to the rating. Obsidian's rating is constrained
by its size (2023 production guidance of 32,750 barrels of oil
equivalent per day (boe/d)), relatively higher operating costs, and
some exposure to heavy-light price differentials and relatively
higher asset retirement obligations.
Obsidian's operating performance in 2022 was largely in line with
DBRS Morningstar's expectations. Production was marginally lower
than the Company's guidance because of cold weather in December.
The Company had a successful development program focused on the
Cardium and Peace River areas and was able to increase its proved
reserves and replace more than 200% of its annual production in
2022. While the Company experienced inflationary pressure on
operating and capital costs, the impact was offset by stronger
commodity prices. Obsidian generated healthy netbacks, and its
recycle ratios were well over 4.0 times (x) in 2022. Production in
Q1 2023 was higher compared with Q1 2022 because of its continued
development program; however, DBRS Morningstar notes that the
Company had to shut in some production in May 2023 because of
wildfires. However, all the production is now back online, and the
impact of the shut in on annual production (approximately 500
boe/d) is not expected to be material.
Stronger crude oil and natural gas prices in 2022 allowed the
Company to generate a material free cash flow (FCF; cash flow after
capex and dividends) surplus in 2022, which was primarily used to
repay debt. As a result, the Company's key credit metrics have seen
a material improvement. The Company also increased the size of its
Senior Secured Credit facility (Credit Facility) to $240.0 million
from $175.0 million, which has improved its liquidity position.
Based on DBRS Morningstar's base case commodity price assumptions
and the Company's annual production and capex guidance, we expect
the Company to generate a modest FCF surplus in 2023. DBRS
Morningstar notes that the Company intends to hedge up to 50% of
its near-term production if prices remain constructive. DBRS
Morningstar expects the Company to use part of the surplus to
reduce borrowings as it progresses toward its net debt target of
$225.0 million. DBRS Morningstar expects the Company's financial
risk profile to be strong and provide an uplift to the overall
ratings under its base case commodity price assumptions, thereby
supporting the Stable trends. DBRS Morningstar expects the Company
will maintain its lease-adjusted debt-to-cash flow ratio below 2.0x
over the forecast horizon.
A rating upgrade would require a material improvement in the
Company's size as measured by production. Given the support
provided by the Company's financial risk profile to the overall
rating, a material deterioration in Obsidian's lease-adjusted
debt-to-cash flow ratio, which could be caused by significantly
lower oil prices or a material deterioration in liquidity, could
trigger a negative rating action.
Notes: All figures are in Canadian dollars unless otherwise noted.
OMERS RELIEF: Moody's Alters Outlook on 'B3' CFR to Negative
------------------------------------------------------------
Moody's Investors Service revised the rating outlook for OMERS
Relief Acquisition, LLC ("Gastro Health") to negative from stable.
At the same time, Moody's affirmed the company's B3 Corporate
Family Rating and B3-PD Probability of Default Rating. Moody's also
affirmed the B2 ratings on the senior secured first lien credit
facilities and the Caa2 rating on the second lien credit facility.
The revision of the outlook to negative reflects very high leverage
at close to 8x in the twelve months ended March 31, 2023, and a
deterioration in financial flexibility due to negative free cash
flow and lower cash balances. Moody's expect the company's earnings
will improve in 2023 reflecting on-going expansion and management's
focus on execution following a period of acquisitions. However, a
material amount of add-backs to adjusted EBITDA persists, which
poses heightened uncertainty around the true underlying cash
generating ability of the company. Failure to improve cash EBITDA
in 2023 will result in negative rating pressure.
Affirmations:
Issuer: OMERS Relief Acquisition, LLC
Corporate Family Rating, Affirmed B3
Probability of Default Rating, Affirmed B3-PD
Backed Senior Secured 1st Lien Revolving Credit Facility, Affirmed
B2
Backed Senior Secured 1st Lien Delayed Draw Term Loan, Affirmed
B2
Backed Senior Secured 1st Lien Term Loan, Affirmed B2
Backed Senior Secured 2nd Lien Term Loan, Affirmed Caa2
Outlook Actions:
Issuer: OMERS Relief Acquisition, LLC
Outlook, Changed To Negative From Stable
RATINGS RATIONALE
The B3 credit profile reflects Gastro Health's very high financial
leverage and an aggressive acquisition strategy, which has kept
leverage close to 8x in the last twelve months ended March 31,
2023. Moody's expect Gastro Health's debt to EBITDA to decline to
below 7x over the next 12-18 months. Meanwhile, the aggressive
acquisition strategy has eroded liquidity. The credit profile is
also constrained by the company's high geographic concentration as
roughly 80% of its revenue is derived from three states - Florida,
Virginia, and Ohio. The credit is supported by the company's good
scale relative to other providers of gastroenterology procedures
and services. It also benefits from the lower costs associated with
patients having these procedures done in ASCs or clinics as opposed
to hospital outpatient departments.
The B2 ratings for the company's senior secured credit facilities
are one notch higher than the B3 CFR. This reflects the level of
junior capital provided by the second lien term loan in the
company's capital structure. The Caa2 rating on the company's
second lien term loan is two notches below the B3 CFR, reflecting
its substantial subordination to the meaningful amount of secured
debt in the company's capital structure.
The negative outlook reflects the risks related to reducing its
high leverage and generating positive free cash flow. Failure to
improve cash EBITDA will result in negative rating pressure.
OMERS' CIS-4 indicates the rating is lower than it would have been
if ESG exposures did not exist. This reflects significant exposure
to social risk considerations together with an aggressive financial
policy which results in some governance risk.
Moody's expects that Gastro Health will have adequate liquidity
over the next 12-18 months, reflecting minimal free cash flow and
cash balances of $16 million as of March 31, 2023. Moody's expects
capex to be modest at roughly $10 million in 2023. Liquidity is
further supported by a $60 million revolving credit facility
expiring 2026 that is currently $10 million drawn.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be downgraded if revenue or profitability
weakens, or the company fails to generate positive free cash flow
by end of 2023. A downgrade could also occur if the company's
liquidity weakens or if the company's financial policies become
more aggressive, or if adjusted debt/EBITDA remains above 7.0
times.
The ratings could be upgraded if the company demonstrates stable
organic growth while effectively executing its expansion strategy.
An upgrade would be supported by sustained, positive free cash flow
and debt to EBITDA that is expected to be maintained below 6.0
times.
Gastro Health is a leading clinical platform comprised of
physicians and advanced practitioners specializing in the treatment
of gastrointestinal disorders, nutrition, and digestive health. The
company's platform spans 7 states and includes over 300 physicians.
LTM revenue as of March 31, 2023 was $649 million. Gastro Health is
owned by Canadian public pension fund OMERS.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
OUTPUT SERVICES: S&P Withdraws 'CCC+' Issuer Credit Rating
----------------------------------------------------------
S&P Global Ratings withdrew all its ratings on U.S.-based billing
and critical communications provider Output Services Group Inc.
because of a lack of sufficient information to maintain them. This
includes its 'CCC+' issuer credit rating, and its 'CCC+'
issue-level rating and '3' recovery rating on the company's
first-lien credit facility. At the time of the withdrawal, S&P's
outlook on the company was negative.
PANTHER GUARANTOR: S&P Places 'B-' ICR On CreditWatch Developing
----------------------------------------------------------------
S&P Global Ratings placed all of its ratings on Panther Guarantor
II L.P. (d/b/a Forcepoint) including the 'B-' issuer credit rating
on CreditWatch with developing implications.
The CreditWatch placement reflects uncertainty regarding the
company's post-transaction business profile and capital structure.
Depending on the outcome of the transaction, S&P could raise,
lower, or affirm its ratings.
While the transaction will likely enable significant debt
repayment, the company's go-forward capital structure is uncertain.
The CreditWatch placement follows Forcepoint's announcement that it
is selling its G2CI business to TPG for $2.45 billion. Although
Forcepoint has not announced its intent regarding use of proceeds
from the transaction, S&P believes it is likely to use some of the
proceeds to paydown its outstanding debt balance upon transaction
close. The company's capital structure comprises about $667 million
outstanding amount of term loans that are prepayable and a $75
million revolver with $10 million drawn currently.
Information surrounding Forcepoint's remaining business profile and
capital structure will be vital in determining our ratings on the
company post-transaction close. The sale of G2CI (about 60% of
consolidated annual contract value (ACV) bookings as of June 30,
2023), which has been the better performing segment historically,
will significantly reduce Forcepoint's business scale. S&P said,
"While we believe there are growth prospects for the remaining
business (RemainCo), we view the RemainCo focusing on commercial
enterprise security offerings will likely face growth uncertainty
and execution risks over the near to medium term. For example,
while we believe Forcepoint One, the platform product that the
company launched within the commercial business segment since early
2022, has shown meaningful momentum in bookings growth and customer
receptions, the recent growth in the commercial business ACV
bookings is fairly nascent and the business would likely require
incremental investments to modernize, expand and enhance product
capabilities going forward. We also view the company's free cash
flow profile as uncertain given that Forcepoint has generated
negative free cash flow over the past two years. Forcepoint's
current Chief Executive Officer, Manny Rivelo, will continue to
stay with the remaining business that will continue to be owned by
Francisco Partners, which will be important to its business
execution over the next couple of years. We will resolve our
CreditWatch placement following a detailed review of Forcepoint's
post-close business strategies, capital structure, and ongoing
financial policy."
CreditWatch
S&P said, "The CreditWatch placement reflects the lack of clarity
surrounding the company's post-transaction business profile and
capital structure. We will seek to resolve the CreditWatch
placement after reviewing the remaining commercial business
regarding its business strategies, capital structure, and ongoing
financial policy as soon as the relevant information becomes
available. We could raise, lower, or affirm our ratings depending
on the outcome of the transaction."
PARKCHESTER ORAL: Court OKs Interim Cash Collateral Access
----------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
authorized Parkchester Oral and Maxillofacial Surgery Associates,
P.C. to use cash collateral on an interim basis in accordance with
the budget, with a 10% variance.
The Debtor requires the use of cash collateral to meet its ordinary
operating expenses and maintain and preserve its business.
The Debtor acknowledges and agrees that, as of the petition date,
it is indebted to TD Bank N.A. in the total principal amount of
$525,372, together with interest from February 3, 2023, and it is
indebted to the United States Small Business Administration by
virtue of a loan made by SBA to the Debtor on April 22, 2020, in
the sum of $500,000, together with interest that has accrued
thereon.
The Debtor agrees and acknowledges the cash proceeds generated from
the operation of the Debtor's medical practice constitutes "cash
collateral" within the meaning of Bankruptcy Code section 363(a).
As adequate protection for any diminution in value of TD Bank's and
the SBA's interests in the Collateral as of the Petition Date by
reason of the Debtor's use of cash collateral, the Lenders are
granted replacement liens and security interests in all of the
Debtor's assets acquired post-petition including cash to the extent
that the lenders' pre-petition liens were valid, perfected and
enforceable as of the Petition Date.
As further adequate protection for the Debtor's use of cash
collateral, on or before the 10th day of each month commencing on
August 10, 2023, the Debtor will pay to TD Bank $12,000 per month
and continuing monthly thereafter, and the Debtor will pay to the
SBA $2,437 per month commencing on August 10, 2023 and continuing
monthly thereafter.
These events constitute an "Event of Default":
i. The failure by the Debtor to perform, in any respect, any
of the terms, provisions, conditions, covenants, or obligations
under the Order;
ii. The entry of any order by the Court granting relief from or
modifying the automatic stay of Bankruptcy Code section 362(a);
iii. Dismissal of either of the Chapter 11 case or conversion of
the Chapter 11 case to a chapter 7 case, or appointment of a
Chapter 11 trustee, or examiner with enlarged powers, or other
responsible person;
iv. the Debtor sells or encumbers any item of property subject
to the Adequate Protection Liens (including, without limitation,
post-petition earnings), without the prior written consent of the
Lenders;
v. Debtor's spending deviates materially (more than 10%) from
the Budget;
vi. The reversal, vacatur, or stay of the effectiveness of the
Order; and/or
vii. The entry by the Bankruptcy Court of an order terminating
the Debtor's right to use cash collateral.
The final hearing on the matter is set for September 6 at 10 a.m.
A copy of the order is available at https://urlcurt.com/u?l=4Y2kRK
from PacerMonitor.com.
About Parkchester Oral and Maxillofacial
Surgery Associates
Parkchester Oral and Maxillofacial Surgery Associates PC is a
dental implants provider in New York.
The Debtor filed its voluntary petition for Chapter 11 protection
(Bankr. S.D.N.Y. Case No. 23-11015) on June 28, 2023, with $100,000
to $500,000 in assets and $1 million to $10 million in liabilities.
Marlon K. Moore MD, president, signed the petition.
Michael E. Wiles oversees the case.
Marc A. Pergament, Esq., at Weinberg Gross & Pergament, LLP serves
as the Debtor's legal counsel.
PBF HOLDING: Moody's Rates New $500MM Senior Unsecured Notes 'Ba3'
------------------------------------------------------------------
Moody's Investors Service assigned a Ba3 rating to PBF Holding
Company LLC's proposed $500 million of senior unsecured notes due
2030. PBF's other ratings, including the Ba2 Corporate Family
Rating, and positive outlook remain unchanged.
PBF is refinancing its $664.5 million of senior unsecured notes due
2025 with net proceeds from its proposed $500 million bond offering
plus cash on its balance sheet.
"PBF's bond refinancing transaction extends the company's debt
maturity profile while the use of cash to pay down a portion of
debt reduces leverage," commented Jonathan Teitel, a Moody's senior
analyst.
Assignments:
Issuer: PBF Holding Company LLC
Senior Unsecured Regular Bond/Debenture, Assigned Ba3
RATINGS RATIONALE
PBF's senior unsecured notes are rated Ba3. This is one notch below
the Ba2 CFR and reflects effective subordination to the senior
secured revolver with respect to the collateral securing the
facility. PBF's notes are not guaranteed by PBF Energy Inc. (PBF's
parent company) or PBF Logistics LP (another subsidiary of PBF
Energy Inc.).
PBF's Ba2 CFR reflects Moody's expectation for the company's
profitability and other credit metrics to remain solid through
2024, with support from continued healthy demand for petroleum
products, limited refining capacity, and relatively low inventory
levels. PBF benefits from large scale and geographic
diversification within the US. The company owns six refineries with
combined throughput capacity of approximately 1 million barrels per
day (bpd). Given the cyclical nature of the refining business,
PBF's EBITDA and cash flows are volatile, leading to swings in
leverage. The company has sizable outstanding liabilities to comply
with the federal Renewable Fuel Standard (RFS) and California's Low
Carbon Fuel Standard (LCFS). PBF has purchased RINs to reduce this
liability and plans to continue to do so over the next several
quarters to continue decreasing the balance to maintain lower
exposure to these obligations. PBF's parent company, PBF Energy
Inc. (PBF Energy), depends on cash distributions from its indirect
subsidiaries – PBF Holding Company LLC and PBF Logistics LP –
to pay quarterly dividends and to support its share repurchase
program. Moody's expects PBF Energy Inc. will manage cash
distributions to its shareholders in a balanced manner that is not
leveraging for PBF and preserves the company's strong liquidity,
including a large cash balance.
In late June 2023, PBF Energy closed on its 50-50 joint venture
with Eni Sustainable Mobility (Eni) in St. Bernard Renewables LLC
(SBR), a biorefinery co-located with PBF's Chalmette refinery in
Louisiana. The biorefinery started operations in June 2023 and
produces renewable diesel. PBF Energy contributed the biorefinery
and other related assets while Eni committed to make capital
reimbursements and contributions totaling $835 million to PBF
Energy. Of this amount, Eni paid $431 million at closing. In July
2023, SBR's pre-treatment unit started up, and as a result, Eni
paid $414.6 million, including $10.6 million of the $50 million
contingent consideration, which PBF Energy contributed to PBF. Eni
also brings its experience with two biorefineries in Italy.
Production of renewable diesel will generate RINs which PBF Energy
will have the right of first offer to purchase from SBR. SBR should
be able to make distributions to its owners in the future.
PBF's SGL-1 rating reflects Moody's expectation that PBF will
maintain very good liquidity. As of June 30, 2023, the company had
$1.5 billion of cash on the balance sheet. PBF has an ABL revolver
due January 2025 with $2.85 billion of lender commitments. As of
June 30, 2023, the revolver was undrawn and $287 million in letters
of credit were issued under the facility. The revolver has a
springing minimum fixed charge coverage ratio covenant based on
availability under the facility. The company elected to terminate
its inventory intermediation agreement that supported several of
its refineries at the end of July 2023 and will fund that inventory
for these refineries with cash. To terminate the agreement, PBF
made a provisional payment of $268 million on July 31, 2023. PBF
has a $300 million uncommitted receivables purchase facility.
The positive outlook reflects the potential that if PBF continues
to follow these financial policies and maintains low financial
leverage and strong liquidity with a prudent approach to
shareholder returns then its CFR could be upgraded to Ba1.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
Factors that could lead to an upgrade include PBF management
demonstrating adherence to its stated financial policies and
maintaining low leverage through the cycle with positive free cash
flow and strong liquidity.
Factors that could lead to a downgrade include weakening operating
performance, deterioration of liquidity or negative free cash flow,
or more aggressive financial policies.
PBF Holding Company LLC, headquartered in Parsippany, NJ, is a
subsidiary of PBF Energy Inc., a publicly traded refining company
in the US with facilities in multiple states. PBF Energy Inc. is
the sole managing member of PBF Energy Company LLC and owns
approximately 99.3% of the economic interests in PBF Energy Company
LLC (the parent company of PBF Holding Company LLC and the indirect
owner of a 50% interest in St. Bernard Renewables LLC). PBF Energy
Inc. also owns PBF Logistics LP which primarily owns and operates
midstream infrastructure relating to its refineries.
The principal methodology used in this rating was Refining and
Marketing published in August 2021.
PHOTIZO LLC: Unsecured Creditors to Split $7,500 in 3 Years
-----------------------------------------------------------
Photizo, LLC d/b/a Fish Window Cleaning, filed with the U.S.
Bankruptcy Court for the Southern District of Indiana a Small
Business Chapter 11 Plan dated August 14, 2023.
Photizo owns and operates a franchise-owned commercial and
residential window cleaning business known as Fish Window Cleaning.
Photizo has always been located in Bloomington, Indiana and
services customers in Bloomington and the surrounding areas.
Photizo was incorporated in 2014 as an Indiana Limited Liability
Company, and Photizo's sole member is Thomas Richardson.
In 2022, Photizo obtained monies from a merchant cash advance party
to address a liquidity crunch. Like so many other small businesses,
Photizo then obtained more monies from other merchant cash advance
parties as it struggled to keep up with the daily and weekly
payments. With the bankruptcy stay in place, Photizo has seen its
cash flow stabilize and believes it will be able to successfully
reorganize.
Class 6 consists of General Unsecured Claims. The unsecured
creditors shall receive a pro-rata share of $7,500.00 paid in
annual installments of $2,500.00 commencing on the one-year
anniversary of the Confirmation Date and continuing annually
thereafter for two additional years. Class 6 claims are impaired,
and holders of Allowed Unsecured Claims are entitled to vote.
The Debtor believes there are four parties with valid, unsecured
Claims against the Debtor totaling $63,950.14: Dunbar Capital LLC
($23,500.00); ERC Specialists ($3,190.00); U.S. Small Business
Administration ($13,044.00); and ODK Capital LLC dba On-Deck
($22,474.92).
The Debtor is filing claim objections to the following MCAs
totaling $45,086.44: Everest Business Funding ($10,156.80); and
White Road Capital, LLC ($34,929.64). Those parties shall receive a
pro-rata share from the Debtor's annual payments along with other
Class 6 claimants only if they are provided an Allowed Claim.
Equity Interest holders are parties who hold an ownership interest
(i.e., equity interest) in the Debtor. Thomas Richardson shall
remain the sole member.
The source of funds used in this Plan for payments to creditors
shall be the net annual income of the Debtor for three years
resulting from continued, normal business operations of the
Debtor's business. The Debtor shall contribute all net disposable
income toward Plan payments; however, Debtor shall reserve a
portion of the net income to fund a reserve.
A full-text copy of the Chapter 11 Plan dated August 14, 2023 is
available at https://urlcurt.com/u?l=AQBMvn from PacerMonitor.com
at no charge.
Counsel for the Debtor::
David R. Krebs, Esq.
Hester Baker Krebs, LLC
1 Indiana Square, Suite 1600
Indianapolis, IN 46204
Tel: (317) 833-3030
Email: dkrebs@hbkfirm.com
About Photizo LLC dba Fish Window Cleaning
Photizo LLC, doing business as Fish Window Cleaning, owns and
operates a franchise-owned commercial and residential window
cleaning business known as Fish Window Cleaning.
The Debtor filed a Chapter 11 bankruptcy petition (Bankr. S.D. Ind.
Case No. 23 02065) on May 16, 2023. The Debtor hires Hester Baker
Krebs LLC as counsel.
PRETIUM PKG: Lord Abbett CB Fund Marks $13MM Loan at 63% Off
------------------------------------------------------------
Lord Abbett Corporate Bond Fund has marked its $13,079,643 loan
extended to Pretium PKG Holdings, Inc to market at $8,303,284 or
63% of the outstanding amount, as of May 31, 2023, according to
Corporate Bond's semi-annual report on Form N-CSR for the period
from December 1, 2022 to May 31, 2023, filed with the Securities
and Exchange Commission.
Lord Abbett Corporate Bond Fund is a participant in a 2021 Second
Lien Term Loan to Pretium PKG Holdings, Inc. The loan accrues
interest at a rate of 11.758%-11.97% (3 mo. USD LIBOR + 6.75%) per
annum. The loan matures on October 1, 2029.
Lord Abbett Investment Trust is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end
management investment company and was organized as a Delaware
statutory trust on August 16, 1993. The Trust currently consists of
14 funds as of May 31, 2023. The semi-annual report covers 12 of
the funds namely: Lord Abbett Convertible Fund, Lord Abbett Core
Fixed Income Fund, Lord Abbett Core Plus Bond Fund, Lord Abbett
Corporate Bond Fund, Lord Abbett Floating Rate Fund, Lord Abbett
High Yield Fund, Lord Abbett Income Fund, Lord Abbett Inflation
Focused Fund, Lord Abbett Short Duration Core Bond Fund, Lord
Abbett Total Return Fund, Lord Abbett Ultra Short Bond Fund.
Pretium PKG Holdings, Inc. is a manufacturer of rigid plastic
containers for variety of end markets, including food and beverage,
chemicals, healthcare, wellness and personal care. Pretium PKG
Holdings, Inc. is a portfolio company of Clearlake since January
2020.
QUALITY HEATING: Seeks to Extend Plan Exclusivity to October 23
---------------------------------------------------------------
Quality Heating & Air Conditioning Company, Inc. asks the U.S.
Bankruptcy Court for the District of Delaware to extend the
exclusive periods within which it may file a chapter 11 plan to
October 23, 2023.
The Debtor explained that it has devoted considerable time and
effort to preserve and maximize the value of its estate for the
benefit of all stakeholders through the sale of its assets, along
with preparing and filing motions, applications, and other
pleadings to ensure a smooth transition into chapter 11. The
Debtor added that extensive resources have been required to
achieve the measures reached in the chapter 11 case. In light of
these circumstances, the Debtor submits that extension of the
exlusive periods is appropriate and necessary to afford it
sufficient time to solicit acceptance of, and eventually confirm,
a plan of reorganization.
Unless extended, the Debtor's exclusive filing period expires on
July 25, 2023.
Quality Heating & Air Conditioning Company, Inc. is represented
by:
Ronald S. Gellert, Esq.
1201 North Orange Street, Suite 300
Wilmington, DE 19801
Tel: (302) 425-5800
Email: rgellert@gsbblaw.com
About Quality Heating and Air Conditioning
Headquartered in Newport, Delaware, Quality Heating and Air
Conditioning provides HVAC and sheet metal services across the
Delaware, Maryland, Pennsylvania, New Jersey and Virginia areas.
Quality Heating specializes in the construction and commercial
industries and was founded over 50 years ago. It is capable of
all phases of sheet metal work and has worked on an extensive
variety of projects including new construction, industrial,
pharmaceutical, medical, educational, remodels and design-build.
It has over 40,000 square feet of space dedicated to custom
fabrication.
Quality Heating sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 23-10354) on March 27,
2023. In the petition signed by Horace Adam Wahl, III, president,
the Debtor disclosed up to $50 million in both assets and
liabilities.
Judg Karen B. Owens oversees the case.
The Debtor tapped Gellert Scali Busenkell & Brown, LLC as legal
counsel and SC&H Group, Inc. as investment banker. Epiq Corporate
Restructuring, LLC is the claims and noticing agent.
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Debtor's Chapter 11 case.
The committee is represented by Morris James, LLP.
R.B. DWYER CO: Taps Kronick Kalada Berdy & Co. as Accountant
------------------------------------------------------------
R.B. Dwyer Co., Inc. and its affiliates received approval from the
U.S. Bankruptcy Court for the Middle District of Pennsylvania to
employ Kronick Kalada Berdy & Co.
The Debtors require the services of an accountant in connection
with their Chapter 11 cases.
Kronick received one payment from the Debtors within 90 days of the
petition date. The payment of $35,750 was for professional services
rendered by the firm, including tax consultations and the
preparation of 2022 income tax returns.
Kevin Foley, CPA, a partner at Kronick, 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:
Kevin R. Foley, CPA
Kronick Kalada Berdy & Co.
190 Lathrop Street
Kingston, PA 18704
Tel: (570) 283-2727
Fax: (570) 283-1670'
Email: kfoley@kkbcpas.com
About R.B. Dwyer Co.
R.B. Dwyer Co., Inc. and affiliates comprise an integrated
commercial packaging business with facilities located in
Pennsylvania, California and Tennessee.
R.B. Dwyer, Ideal Sleeve International, LLC and Color Craft
Flexible Printing, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. M.D. Pa. Lead Case No. 23-01420) on
June 26, 2023. At the time of the filing, the Debtors each reported
$1 million to $10 million in both assets and liabilities.
Judge Mark J. Conway oversees the cases.
The Debtors tapped Jeffrey Kurtzman, Esq., at Kurtzman | Steady,
LLC as legal counsel and Kronick Kalada Berdy & Co. as accountant.
RASPBERRY CREEK: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Raspberry Creek Fabrics, LLC
8695 South Highland Drive
Sandy, UT 84093
Business Description: The Debtor offers apparel textiles
and custom printing services.
Chapter 11 Petition Date: August 17, 2023
Court: United States Bankruptcy Court
District of Utah
Case No.: 23-23514
Debtor's Counsel: Jeffrey L. Trousdale, Esq.
COHNE KINGHORN, P.C.
111 E. Broadway, 11th Floor
Salt Lake City, UT 84111
Tel: 801-363-4300
Fax: 801-363-4378
Email: jtrousdale@ck.law
Total Assets: $146,490
Total Liabilities: $1,283,026
The petition was signed by Diana Rammell as manager.
A copy of the Debtor's list of 20 largest unsecured creditors is
available for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/POEX57Q/Raspberry_Creek_Fabrics_LLC__utbke-23-23514__0002.0.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/PCXENOY/Raspberry_Creek_Fabrics_LLC__utbke-23-23514__0001.0.pdf?mcid=tGE4TAMA
RAW INDULGENCE: Cash Collateral Access Thru Sept 26 OK'd
--------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
authorized Raw Indulgence, Ltd. to use cash collateral on an
interim basis in accordance with the budget, with a 10% variance,
through the final hearing scheduled for September 26, 2023.
The Debtor requires the use of KeyBank National Association's cash
collateral on a continued basis to pay ordinary operating expenses
relating to its business, including among other things, payroll,
taxes and payments to ordinary course service providers and
vendors.
Prior to the Petition Date, the Debtor entered into a U.S. Small
Business Administration Loan dated March 19, 2015, with KeyBank,
whereby KeyBank loaned the principal sum of $890,000 to the Debtor.
The obligation to the bank was secured pursuant to, inter alia, a
Security Agreement dated March 19, 2015.
The Debtor acknowledges that on January 29, 2022, it obtained an
EIDL loan in the amount of $2 million from the SBA, at an interest
rate of 3.75%. The loan was memorialized in a promissory note.
In addition to the existing rights and interests of KeyBank, the
SBA, and other secured parties in the cash collateral and for the
purpose of adequately protecting it from diminution in value of the
collateral, KeyBank, the SBA and the Other Secured Parties are
granted valid, enforceable, fully-perfected, security interests --
to the extent the Pre-Petition Liens were valid, perfected and
enforceable as of the Petition Date and in the continuing order of
priority that existed as of the Petition Date -- on all the
Debtor's property, in the same validity, order and priority as the
Pre-Petition Liens, subject, in accordance with the priority as set
forth therein, and subordinate only to a carve-out for: (i) United
States Trustee fees pursuant to 28 U.S.C. Section 1930, together
with interest, if any, pursuant to 31 U.S.C. Section 3717 and any
Clerk's filing fees; and (ii) the fees and commissions of a
hypothetical Chapter 7 trustee in an amount not to exceed $10,000.
In addition, the Replacement Liens granted will not attach to the
proceeds of any recoveries of estate causes of action under 11
U.S.C. Sections 542 through 553.
As further adequate protection, the Debtor will make monthly
payments to KeyBank, in accordance with the Note, not later than
the thirtieth day of each month (and the last day of February), in
the estimated amount of $10,544 and to the SBA in the amount of
$5,000.
As further adequate protection the Debtor will make monthly
payments to the SBA for the duration of the Order, not later than
the 30th day of each month (and the last day of February), in the
amount of $5,000 as adequate protection for any diminution in the
value of any collateral securing its lien as a result of the use of
cash collateral, commencing in the month of the date of entry of
the Order.
The Debtor's right to use the cash collateral will terminate
immediately upon the occurrence of any of these events:
a) The entry of an order of the Court converting or dismissing
the Chapter 11 case;
b) The entry of an order of the Court confirming a plan of
reorganization in the Chapter 11 case;
c) The Debtor's failure (i) to perform any of its obligations
under the Order, and (ii) to cure such Default within 10 business
days after the giving of written notice thereof to the Debtor,
KeyBank, the SBA, and the Other Secured Parties, the United States
Trustee and any official committee appointed in the Chapter 11 Case
by KeyBank, the SBA, and the Other Secured Parties, subject to the
Debtor's right to seek an expedited hearing during the Cure Period
to challenge whether a Default has occurred;
d) the amendment, supplementation, waiver or other
modification of all or part of this Order without KeyBank, the SBA,
and the Other Secured Parties having been given at least 72 hours
advance, written notice, by overnight service upon them (unless
otherwise prescribed by the Bankruptcy Court having jurisdiction
over the Debtor's case). However, in no event will the Debtor seek
emergency relief concerning the Order from the Court without
KeyBank, the SBA, and the Other Secured Parties having been given
at least 24 hours advance, actual notice (via telephone or
electronic mail); or
e) the termination of all or substantially all of the
operations of the Debtor, whether by voluntary act(s) or
omission(s) of the Debtor, or otherwise.
A copy of the Court's order is available at
https://urlcurt.com/u?l=8xntBr from PacerMonitor.com.
About Raw Indulgence
Raw Indulgence is a protein bar manufacturer in Elmsford, NY.
Raw Indulgence sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 23-22350) on May 8, 2023.
In the petition filed by Alice Benedetto, as chief executive
officer, the Debtor reported total assets of $708,412 and total
liabilities of $3,888,567.
The case is overseen by the Honorable Bankruptcy Judge Sean H.
Lane.
The Debtor is represented by Robert L. Rattet, Esq. at DAVIDOFF
HUTCHER & CITRON LLP.
ROBBINS SERVICE: Unsecureds Will Get 48% of Claims in Plan
----------------------------------------------------------
Robbins Service Group, LLC, filed with the U.S. Bankruptcy Court
for the Western District of North Carolina a Plan of Reorganization
dated August 14, 2023.
The Debtor is a North Carolina limited liability company that
operates a landscaping business doing business as Whispering Pines
Landscaping, whose services generally include landscape design,
installation, and maintenance.
The Debtor's business first encountered financial trouble in 2022,
when inflationary pressures increased the cost of the fuel,
materials, and supplies needed for its landscaping services. Also,
the tight labor market further strained the Debtor's financial
resources as the industry standard wages and benefits increased as
employers competed for employees. Those two financial pressures
zapped the Debtor's cash flow such that the Debtor was forced to
seek immediate infusions of cash. With no quick prospects
available, the Debtor turned to a number of merchant cash advance
outfits.
The Debtor's business began to improve during the spring of 2023,
but the continuing strain on financial, administrative, and
management resources in response to the merchant cash advance
operations proved too great to continue operating without the
protections afforded by subchapter V of chapter 11 of the
Bankruptcy Code. The Debtor filed the Chapter 11 Case on May 15,
2023, to reorganize its debt on more manageable terms, to right
size its business operations to match its current needs, and to
preserve its ongoing operations from the threat posed by the
merchant cash advance outfits.
Following the Petition Date, the Debtor received unsolicited
interest in purchasing its business in a going-concern sale.
Through this Plan, the Debtor intends to sell its business as a
going-concern to provide funds to pay its Creditors. As of the date
of the filing of this Plan, the Debtor remains in negotiations with
prospective purchasers. Once such negotiations are concluded, the
Debtor intends to timely amend this Plan to provide all specifics
related to the transaction, including but not limited to the
attachment of the APA, and the corresponding updates to the
Financial Projections.
Class 12 consists of Allowed Priority Unsecured Claims. Each Holder
of a Class 12 Claim shall be paid the Allowed Priority Unsecured
Claims at the option of the Reorganized Debtor: (a) in full, in
Cash, on the Effective Date or as soon as practicable thereafter;
(b) upon such other terms as may be mutually agreed upon between
such holder of an Allowed Priority Unsecured Claims and the
Reorganized Debtor; or (c) on the ERC Distribution Date. The Debtor
estimates that the Allowed Priority Unsecured Claims total
$48,355.42. Class 12 is impaired by the Plan.
Class 13 consists of the Allowed Unsecured Claims. Each Holder of
an Allowed Unsecured Claim will receive a Pro Rata Share of the
Sale Proceeds remaining after payment of all higher priority
Allowed Claims. The Debtor estimates that Allowed Unsecured Claims
will receive a payment of 48% of each of their Allowed Unsecured
Claim, respectively. Class 13 is Impaired by the Plan.
Class 14 consists of the Equity Interests, of which M. Robbins and
R. Robbins are the Holders of the Equity Interests, and M. Robbins
and R. Robbins shall retain their Equity Interest in the
Reorganized Debtor, provided, however, that the Reorganized Debtor
shall not make any distribution or pay any dividend to the Holder
of an Equity Interest on account of such Equity Interest, save and
except for the Pass Through Tax Payments, until the (a) payment in
full by the Debtor of Allowed Claims; the (b) Effective Date; and
the (c) ERC Distribution Date.
The Plan contemplates that distributions to Creditors will be
funded by (a) revenues generated during the post-petition
operations; (b) the ERCs; (c) any resolution of certain Avoidance
Actions; and (d) the APA Proceeds.
A full-text copy of the Plan of Reorganization dated August 14,
2023 is available at https://urlcurt.com/u?l=Fgk3KE from
PacerMonitor.com at no charge.
Counsel for the Debtor:
Matthew L. Tomsic, Esq.
Rayburn Cooper & Durham, P.A
1200 Carillon, 227 West Trade Street,
Charlotte, North Carolina, 28202
Tel: (704) 334-0891
Fax: 704-377-1897
Email: mtomsic@rcdlaw.net
About Robbins Service Group, LLC
Robbins Service Group, LLC is a North Carolina limited liability
company that operates a landscaping business doing business as
Whispering Pines Landscaping. Robbins' services generally include
landscape design, installation, and maintenance. Robbins'
geographic focus is primarily the Lake Norman area.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D.N.C. Case No. 23-40082) on May 15,
2023. In the petition signed by Michael A. Robbins, president and
CEO, the Debtor disclosed up to $10 million in both assets and
liabilities.
Judge Craig Whitley oversees the case.
Matthew L. Tomsic, Esq., at Rayburn Cooper & Durham, P.A.,
represents the Debtor as legal counsel.
ROJESIE INC: Gets OK to Hire Lube & Soto as Substitute Counsel
--------------------------------------------------------------
Rojesie Inc. received approval from the U.S. Bankruptcy Court for
the District of Puerto Rico to employ Lube & Soto Law Offices, PSC
to substitute for the Law Office of Gloria Justiniano Irizarry.
Lube & Soto will be paid at these rates:
Attorneys $300 per hour
Paralegals $85 per hour
In addition, the firm will receive reimbursement for out-of-pocket
expenses incurred.
The retainer fee is $3,500.
Madeline Soto Pacheco, Esq., a partner at Lube & Soto Law Offices,
disclosed in a court filing that her firm is a "disinterested
person" pursuant to Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Madeline Soto Pacheco, Esq.
Teresa M. Lube Capo, Esq.
Lube & Soto Law Offices, PSC
Ponce, PR 00733-5090
Tel: (787) 841-1704
Fax: (842) 5402
Email: madelinesotopacheco@gmail.com
About Rojesie Inc.
Rojesie Inc., doing business as Parador Villas Sotomayor, sought
protection under Subchapter V of Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D.P.R. Case No. 22-02529) on Aug. 29, 2022, with $1
million to $10 million in both assets and liabilities. Carlos G.
Garcia Miranda has been appointed as Subchapter V trustee.
Judge Maria De Los Angeles Gonzalez presides over the case.
Lube & Soto Law Offices, PSC is the Debtor's counsel.
S&G HOSPITALITY: Case Summary & One Unsecured Creditor
------------------------------------------------------
Debtor: S&G Hospitality, Inc.
7500 Vantage Drive
Columbus OH 43235
Business Description: The Debtor is part of the traveler
accommodation industry.
Chapter 11 Petition Date: August 18, 2023
Court: United States Bankruptcy Court
Southern District of Ohio
Case No.: 23-52859
Judge: Hon. Mina Nami Khorrami
Debtor's Counsel: David Beck, Esq.
CARPENTER LIPPS LLP
280 N. High St., Suite 1300
Columbus OH 43215
Tel: 614-365-4142
Email: beck@carpenterlipps.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $500,000 to $1 million
The petition was signed by Abijit Vasani as president.
The Debtor listed Itria Ventures LLC as its sole unsecured creditor
holding a claim of $1,340,200.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/EKP5GBA/SG_Hospitality_Inc__ohsbke-23-52859__0001.0.pdf?mcid=tGE4TAMA
SABRE GLOBAL: Lord Abbett CB Fund Marks $1.2MM Loan at 27% Off
--------------------------------------------------------------
Lord Abbett Corporate Bond Fund has marked its $1,232,670 loan
extended to Sabre Global, Inc to market at $904,472 or 73% of the
outstanding amount, as of May 31, 2023, according to Corporate
Bond's semi-annual report on Form N-CSR for the period from
December 1, 2022 to May 31, 2023, filed with the Securities and
Exchange Commission.
Lord Abbett Corporate Bond Fund is a participant in a 2021 Term
Loan B2 to Sabre Global, Inc. The loan accrues interest at a rate
of 8.77% (3 mo. USD LIBOR + 3.50%) per annum. The loan matures on
December 17, 2027.
Lord Abbett Investment Trust is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end
management investment company and was organized as a Delaware
statutory trust on August 16, 1993. The Trust currently consists of
14 funds as of May 31, 2023. The semi-annual report covers 12 of
the funds namely: Lord Abbett Convertible Fund, Lord Abbett Core
Fixed Income Fund, Lord Abbett Core Plus Bond Fund, Lord Abbett
Corporate Bond Fund, Lord Abbett Floating Rate Fund, Lord Abbett
High Yield Fund, Lord Abbett Income Fund, Lord Abbett Inflation
Focused Fund, Lord Abbett Short Duration Core Bond Fund, Lord
Abbett Total Return Fund, Lord Abbett Ultra Short Bond Fund.
Sabre GLBL Inc. provides information technology services. The
Company offers technology solutions including data-driven business
intelligence, mobile, distribution, and Software as a Service
(SaaS) solutions. Sabre GLBL serves customers worldwide.
SABRE GLOBAL: Lord Abbett CB Fund Marks $4MM Loan at 26% Off
------------------------------------------------------------
Lord Abbett Corporate Bond Fund has marked its $3,937,195 loan
extended to Sabre Global, Inc to market at $2,909,843 or 74% of the
outstanding amount, as of May 31, 2023, according to Corporate
Bond's semi-annual report on Form N-CSR for the period from
December 1, 2022 to May 31, 2023, filed with the Securities and
Exchange Commission.
Lord Abbett Corporate Bond Fund is a participant in a 2021 Term
Loan B to Sabre Global, Inc. The loan accrues interest at a rate of
9.50% (3 mo. USD LIBOR + 4.25%) per annum. The loan matures on June
30, 2028.
Lord Abbett Investment Trust is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end
management investment company and was organized as a Delaware
statutory trust on August 16, 1993. The Trust currently consists of
14 funds as of May 31, 2023. The semi-annual report covers 12 of
the funds namely: Lord Abbett Convertible Fund, Lord Abbett Core
Fixed Income Fund, Lord Abbett Core Plus Bond Fund, Lord Abbett
Corporate Bond Fund, Lord Abbett Floating Rate Fund, Lord Abbett
High Yield Fund, Lord Abbett Income Fund, Lord Abbett Inflation
Focused Fund, Lord Abbett Short Duration Core Bond Fund, Lord
Abbett Total Return Fund, Lord Abbett Ultra Short Bond Fund.
Sabre GLBL Inc. provides information technology services. The
Company offers technology solutions including data-driven business
intelligence, mobile, distribution, and Software as a Service
(SaaS) solutions. Sabre GLBL serves customers worldwide.
SABRE GLOBAL: Lord Abbett CB Fund Marks $860,000 Loan at 27% Off
----------------------------------------------------------------
Lord Abbett Corporate Bond Fund has marked its $860,232 loan
extended to Sabre Global, Inc to market at $681,195 or 73% of the
outstanding amount, as of May 31, 2023, according to Corporate
Bond's semi-annual report on Form N-CSR for the period from
December 1, 2022 to May 31, 2023, filed with the Securities and
Exchange Commission.
Lord Abbett Corporate Bond Fund is a participant in a 2021 Term
Loan B1 to Sabre Global, Inc. The loan accrues interest at a rate
of 8.77% (3 mo. USD LIBOR + 3.50%) per annum. The loan matures on
December 17, 2027.
Lord Abbett Investment Trust is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end
management investment company and was organized as a Delaware
statutory trust on August 16, 1993. The Trust currently consists of
14 funds as of May 31, 2023. The semi-annual report covers 12 of
the funds namely: Lord Abbett Convertible Fund, Lord Abbett Core
Fixed Income Fund, Lord Abbett Core Plus Bond Fund, Lord Abbett
Corporate Bond Fund, Lord Abbett Floating Rate Fund, Lord Abbett
High Yield Fund, Lord Abbett Income Fund, Lord Abbett Inflation
Focused Fund, Lord Abbett Short Duration Core Bond Fund, Lord
Abbett Total Return Fund, Lord Abbett Ultra Short Bond Fund.
Sabre GLBL Inc. provides information technology services. The
Company offers technology solutions including data-driven business
intelligence, mobile, distribution, and Software as a Service
(SaaS) solutions. Sabre GLBL serves customers worldwide.
SIO2 MEDICAL: Seeks to Extend Plan Exclusivity to October 25
------------------------------------------------------------
SiO2 Medical Products and its affiliates ask the U.S. Bankruptcy
Court for the District of Delaware to extend their exclusive
periods to file a chapter 11 plan and solicit acceptances thereof
to October 25, 2023 and December 26, 2023, respectively.
Absent the relief requested, the filing exclusivity period
expires on July 27, 2023, and the solicitation exclusivity period
will expire on September 25, 2023.
The Debtors explained that they are continuing to negotiate the
necessary documentation to effectuate the plan and emerge from
their chapter 11 cases. The Debtors pointed out that while they
anticipate that the effective date will occur in the near term,
the current exclusivity period could potentially expire prior to
the effective date. Accordingly, the Debtors seek the extension
on the exclusivity periods out of an abundance of caution.
SiO2 Medical Products and its affiliates are represented by:
Seth Van Aalten (admitted pro hac vice)
Justin R. Alberto (No. 5126)
Patrick J. Reilley (No. 4451)
Stacy L. Newman (No. 5044)
COLE SCHOTZ P.C.
500 Delaware Avenue, Suite 1410
Wilmington, DE 19801
Tel: (302) 652-3131
Email: svanaalten@coleschotz.com
jalberto@coleschotz.com
preilley@coleschotz.com
snewman@coleschotz.com
- and -
Brian Schartz, Esq.
KIRKLAND & ELLIS LLP
KIRKLAND & ELLIS INTERNATIONAL LLP
601 Lexington Avenue
New York, NY 10022
Tel: (212) 446-4800
Email: brian.schartz@kirkland.com
- and -
Dan Latona, Esq.
KIRKLAND & ELLIS LLP
KIRKLAND & ELLIS INTERNATIONAL LLP
300 North LaSalle Street
Chicago, IL 60654
Tel: (312) 862-2000
Email: dan.latona@kirkland.com
About SiO2 Medical Products
SiO2 Medical Products, Inc. is a material life sciences company
that is at the precipice of mass-commercialization of its
breakthrough materials science technology that is poised to
revolutionize the pharmaceutical industry. Major pharmaceutical
players are testing the company's vials, syringes, tubes, and
other offerings, and the Company anticipates large-scale adoption
in the relative near term.
SiO2 Medical Products and its affiliates sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case
No. 23-10366) on March 29, 2023. In the petition signed by its
chief executive officer, Yves Steffen, SiO2 Medical Products
disclosed $100 million to $500 million in assets and $500 million
to $1 billion in liabilities.
Judge John T. Dorsey oversees the cases.
The Debtors tapped Kirkland Ellis, LLP and Kirkland & Ellis
International, LLP as general bankruptcy counsels; Cole Schotz
P.C. as local bankruptcy counsel; Alvarez & Marshal North
America, LLC as financial and restructuring advisor; and Lazard
as investment banker. Donlin, Recano and Co., Inc. is the
claims, noticing, solicitation and administrative agent.
SOUTHEAST ASSOCIATION: Taps Emerge180 as Tax Credit Consultant
--------------------------------------------------------------
Southeast Association of Healthcare Providers, Inc. seeks approval
from the U.S. Bankruptcy Court for the Northern District of Florida
to employ Emerge180, Inc. as tax credit consultant.
The Debtor requires a consultant to prepare and submit forms and
supporting documents it needs to claim and receive credits under
the Employee Retention Tax Credit Program.
Emerge180 will be paid as follows:
Amount of Credit Percentage
$0 to $500,000 15 per cent
$500,000 to $1,000,000 12 per cent
$1,000,000 and above 10 per cent
In addition, the firm will be paid a non-refundable administrative
fee of $100.
As disclosed in court filings, Emerge180 is a "disinterested
person" pursuant to Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Jonathan Field
Emerge180, Inc.
13902 N Dale Marbry Hwy #225
Tampa, FL 33618
Tel: (800) 805-1138
About Southeast Association of
Healthcare Providers
Southeast Association of Healthcare Providers Inc. operates two
wellness centers in Florida. The Debtor's principal, Dr. Philip
Renfroe, is a chiropractor.
Southeast Association of Healthcare Providers sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Fla. Case No.
23-30455) on July 6, 2023. In the petition filed by Dr. Renfroe,
the Debtor reported assets between $500,000 and $1 million and
liabilities between $1 million and $10 million.
Judge Jerry C. Oldshue, Jr. oversees the case.
The Debtor tapped Bruner Wright, PA as legal counsel and Emerge180,
Inc. as tax credit consultant.
STAR FARMS: Taps Guy Humphries as Bankruptcy Counsel
----------------------------------------------------
Star Farms, Inc. seeks approval from the U.S. Bankruptcy Court for
the District of Colorado to employ Guy Humphries, Attorney at Law.
The Debtor requires legal counsel to:
(a) analyze the financial situation of the Debtor and render
advice concerning a Chapter 11 plan of reorganization;
(b) provide legal advice concerning the powers and duties of
the Debtor;
(c) prepare and file schedules, statement of affairs and any
other required documents;
(d) represent the Debtor at the meeting of creditors and all
hearings related to its Chapter 11 case;
(e) represent the Debtor in any adversary proceeding or
contested matter arising from the bankruptcy case;
(f) prepare legal documents; and
(g) perform other necessary legal services.
The firm will be paid at these rates:
Attorneys $350 per hour
Paralegals $75 per hour
In addition, the firm will receive reimbursement for its
out-of-pocket expenses.
The Debtor paid the firm a pre-bankruptcy retainer of $15,000.
Guy Humphries, Esq., a partner at Guy Humphries, Attorney at Law,
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:
Guy B. Humphries, Esq.
Guy Humphries, Attorney at Law
1801 Broadway Suite 1100
Denver, CO 80202
Tel: (303) 832-0029
Email: guyhumphries@msn.com
About Star Farms
Star Farms, Inc. filed a Chapter 11 bankruptcy petition (Bankr. D.
Colo. Case No. 23-13320) on July 26, 2023, with as much as $1
million in both assets and liabilities. Judge Michael E. Romero
oversees the case.
The Debtor tapped Guy Humphries, Attorney at Law as its bankruptcy
counsel.
STONE CREEK: Case Summary & Four Unsecured Creditors
----------------------------------------------------
Debtor: Stone Creek Ventures. LLC
129 Huntingtown Road
Newtown, CT 06470
Business Description: The Debtor is a Single Asset Real Estate (as
defined in 11 U.S.C. Section 101(51B)).
Chapter 11 Petition Date: August 18, 2023
Court: United States Bankruptcy Court
District of Connecticut
Case No.: 23-50490
Judge: Hon. Julie A. Manning
Debtor's Counsel: Audra M. Buckland, Esq.
LAW OFFICES OF NEIL CRANE, LLC
2679 Whitney Avenue
Hamden, CT 06518
Tel: 203-230-2233
Fax: 203-230-8484
Email: audra@neilcranelaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Rosika Biro as member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's four unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/7TRRSCY/Stone_Creek_Ventures_LLC__ctbke-23-50490__0001.0.pdf?mcid=tGE4TAMA
STRATIS CORP: Case Summary & Nine Unsecured Creditors
-----------------------------------------------------
Debtor: Stratis Corp.
D/B/A Casa Rina Restaurant
886 Commerce Street
Thornwood, NY 10594
Business Description: The Debtor owns a restaurant specializing in
Italian cuisine.
Chapter 11 Petition Date: August 18, 2023
Court: United States Bankruptcy Court
Southern District of New York
Case No.: 23-22617
Judge: Hon. Sean H. Lane
Debtor's Counsel: H Bruce Bronson, Esq.
BRONSONLAW OFFICES PC
480 Mamaroneck Ave
Harrison, NY 10528-1621
Tel: (914) 269-2530
Fax: (888) 908-6906
Email: hbbronson@bronsonlaw.net
Total Assets: $172,822
Total Liabilities: $1,065,000
The petition was signed by Tommy Stratigakas as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's nine unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/6IYZCHQ/Stratis_Corp_DBA_Casa_Rina_Restaurant__nysbke-23-22617__0001.0.pdf?mcid=tGE4TAMA
SUNBURST HOTELS: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Sunburst Hotels, LLC
7500 Vantage Drive
Columbus OH 43235
Business Description: The Debtor is part of the traveler
accommodation industry.
Chapter 11 Petition Date: August 18, 2023
Court: United States Bankruptcy Court
Southern District of Ohio
Case No.: 23-52863
Judge: Hon. Mina Nami Khorrami
Debtor's Counsel: David Beck, Esq.
CARPENTER LIPPS LLP
280 N. High St., Suite 1300
Columbus OH 43215
Tel: 614-365-4142
Email: beck@carpenterlipps.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Abijit Vasani as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/CSB75VY/Sunburst_Hotels_LLC__ohsbke-23-52863__0001.0.pdf?mcid=tGE4TAMA
SURGALIGN HOLDINGS: Committee Taps Pachulski as Legal Counsel
-------------------------------------------------------------
The official committee of unsecured creditors of Surgalign
Holdings, Inc. and its affiliated debtors seeks approval from the
U.S. Bankruptcy Court for the Southern District of Texas to hire
Pachulski Stang Ziehl & Jones, LLP.
The committee requires legal counsel to:
a. Advise the committee with respect to its rights, duties,
and powers in the Debtors' Chapter 11 cases;
b. Assist and advise the committee in its consultations with
the Debtors relative to the administration of the cases;
c. Assist the committee in analyzing the claims of creditors
and the Debtors' capital structure and in negotiating with holders
of claims;
d. Assist the committee in its investigation of the acts,
conduct, assets, liabilities, and financial condition of the
Debtors and of the operation of the Debtors' businesses;
e. Assist the committee in its investigation of the liens and
claims of the Debtors' lenders and the prosecution of any claims or
causes of action revealed by such investigation;
f. Assist the committee in its analysis of, and negotiations
with, the Debtors or any third-party concerning matters related to,
among other things, the assumption or rejection of leases of
nonresidential real property and executory contracts, asset
dispositions, financing or other transactions, and the terms of a
plan of reorganization for the Debtors;
g. Assist and advise the committee in communicating with
unsecured creditors regarding significant matters in the cases;
h. Represent the committee at hearings and other proceedings;
i. Review and analyze legal documents, statements of
operations, and schedules filed with the court and advise the
committee as to their propriety;
j. Assist the committee in preparing pleadings and
applications as may be necessary in furtherance of the committee's
interests and objectives;
k. Prepare legal papers; and
l. Perform other necessary legal services.
The hourly rates charged by the firm's attorneys and
paraprofessionals are as follows:
Partners $895 - $1,995 per hour
Of Counsel $875 - $1,525 per hour
Associates $725 - $895 per hour
Paraprofessionals $425 - $595 per hour
In addition, the firm will receive reimbursement for work-related
expenses incurred.
In accordance with Appendix B-Guidelines for reviewing fee
applications filed by attorneys in larger Chapter 11 cases,
Bradford Sandler, Esq., a partner at Pachulski, disclosed the
following:
Question: Did you agree to any variations from, or
alternatives to, your standard or customary billing arrangements
for this engagement?
Answer: No.
Question: Do any of the professionals included in this
engagement vary their rate based on the geographic location of the
bankruptcy case?
Answer: No.
Question: If you represented the client in the 12 months
prepetition, disclose your billing rates and material financial
terms for the prepetition engagement, including any adjustments
during the 12 months prepetition. If your billing rates and
material financial terms have changed postpetition, explain the
difference and reasons for the difference.
Answer: Not applicable.
Question: Has your client approved your respective budget and
staffing plan, and, if so, for what budget period?
Answer: As committee counsel, the firm anticipates that the
committee's professional fees will be initially governed by the
budget and the order approving the debtor-in-possession financing.
The committee and its professionals reserve all rights to seek
approval of committee professional fees.
As disclosed in court filings, Pachulski and its attorneys do not
represent any interest adverse to that of the committee in the
matters on which they are to be retained.
Pachulski can be reached at:
Bradford J. Sandler, Esq.
Pachulski Stang Ziehl & Jones, LLP
780 3rd Ave., Suite 3400
New York, NY 10017
Tel: 212.561.7700
Email: bsandler@pszjlaw.com
About Surgalign Holdings
Surgalign Holdings, Inc. is a global medical technology company
focused on elevating the standard of care by driving the evolution
of digital health. It has developed an artificial intelligence and
augmented reality technology platform called HOLO AI, which the
company views as a powerful suite of AI software technology which
connects the continuum of care from the pre-op and clinical stage
through post-op care, and is designed to achieve better surgical
outcomes, reduce complications, and improve patient satisfaction.
Surgalign Holdings and its affiliates sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Texas Lead Case No.
23-90731) on June 19, 2023. At the time of the filing, the Debtors
reported $50 million to $100 million in both assets and
liabilities.
Judge Christopher M. Lopez oversees the cases.
The Debtors tapped White & Case, LLP as lead bankruptcy counsel;
Jackson Walker, LLP as local and conflict counsel;
PricewaterhouseCoopers, LLP as tax services provider; and Alvarez &
Marsal Securities, LLC as investment banker and financial advisor.
Kroll Restructuring Administration, LLC is the Debtors' notice and
claims agent.
The U.S. Trustee for Region 7 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
Pachulski Stang Ziehl & Jones, LLP and Province, LLC serve as the
committee's legal counsel and financial advisor, respectively.
SURGALIGN HOLDINGS: Committee Taps Province as Financial Advisor
----------------------------------------------------------------
The official committee of unsecured creditors of Surgalign
Holdings, Inc. and its affiliated debtors seeks approval from the
U.S. Bankruptcy Court for the Southern District of Texas to hire
Province, LLC as its financial advisor.
The firm's services include:
(a) Reviewing financial and operational information furnished
by the Debtors;
(b) Monitoring the sale process, reviewing bidding procedures,
stalking horse bids and asset purchase agreements, interfacing with
the Debtors' professionals, and advising the committee regarding
the process;
(c) Scrutinizing the economic terms of various agreements,
including, but not limited to, the Debtors' KEIP and KERP and
various professional retentions;
(d) Analyzing the Debtors' proposed business plans and
developing alternative scenarios, if necessary;
(e) Assessing the Debtors' various pleadings and proposed
treatment of unsecured creditor claims;
(f) Preparing or reviewing, as applicable, avoidance action
and claim analyses;
(g) Assisting the committee in reviewing the Debtors'
financial reports;
(h) Advising the committee on the current state of the
Debtors' Chapter 11 cases;
(i) Advising the committee in negotiations with the Debtors
and third parties as necessary;
(j) If necessary, participating as a witness in hearings
before the court; and
(k) Other financial advisory services.
The hourly rates charged by the firm for its services are as
follows:
Managing Directors/Principals $860 - $1,350
VPs/Directors/Senior Directors $580 - $950
Analysts/Associates/Senior Associates $300 - $650
Paraprofessionals $220 - $300
Sanjuro Kietlinski, a principal at Province, disclosed in a court
filing that the firm is "disinterested" pursuant to Section 101(14)
of the Bankruptcy Code.
The firm can be reached at:
Sanjuro Kietlinski
Province, LLC
2360 Corporate Circle, Suite 340
Henderson, NV 89074
Phone: (702) 685-5555
Email: skietlinski@provincefirm.com
info@provincefirm.com
About Surgalign Holdings
Surgalign Holdings, Inc. is a global medical technology company
focused on elevating the standard of care by driving the evolution
of digital health. It has developed an artificial intelligence and
augmented reality technology platform called HOLO AI, which the
company views as a powerful suite of AI software technology which
connects the continuum of care from the pre-op and clinical stage
through post-op care, and is designed to achieve better surgical
outcomes, reduce complications, and improve patient satisfaction.
Surgalign Holdings and its affiliates sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Texas Lead Case No.
23-90731) on June 19, 2023. At the time of the filing, the Debtors
reported $50 million to $100 million in both assets and
liabilities.
Judge Christopher M. Lopez oversees the cases.
The Debtors tapped White & Case, LLP as lead bankruptcy counsel;
Jackson Walker, LLP as local and conflict counsel;
PricewaterhouseCoopers, LLP as tax services provider; and Alvarez &
Marsal Securities, LLC as investment banker and financial advisor.
Kroll Restructuring Administration, LLC is the Debtors' notice and
claims agent.
The U.S. Trustee for Region 7 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
Pachulski Stang Ziehl & Jones, LLP and Province, LLC serve as the
committee's legal counsel and financial advisor, respectively.
TECHNICAL ORDNANCE: Unsecureds to be Paid in Full over 5 Years
--------------------------------------------------------------
Technical Ordnance Solutions, LLC ("TOS") Atomic Machine and EDM,
Inc. ("Atomic"), and Energy Technical Systems, Inc. ("ETS")
submitted a Disclosure Statement for Joint Plan of Reorganization
dated August 14, 2023.
TOS is largely a holding company that owns 100% of the equity in
Atomic and ETS, but also owns that certain real property and
improvements thereon located at 9319 Puckett Road, Perry, Florida
32348 (the "Perry Property").
Atomic manufactures gun barrels, gun components, surgical
instruments, aerospace parts, automotive machinery parts, and
miscellaneous commercial machinery parts. ETS manufactures
ordnance, munitions, energetics, and destructive devices.
Prior to the Debtors' overall distress, the gun barrel market was
incredibly robust. Much of this success took place at the onset of
the COVID- 19 pandemic. With reduced concerns about personal
safety, the urgency to acquire firearms diminished for many
individuals. This certainly impacted the Debtors' profitability at
a time when the momentum to own a gun appeared unwavering—both
pre- and post-COVID.
The Debtors recognized this drop in demand immediately. To survive,
the Debtors knew that a new product line, which the Debtors'
machinery could produce, was necessary. After analyzing market
trends, the Debtors turned to both the medical and aerospace
industries. In essence, the Debtors were then entering into a
completely new market without any brand recognition or past
customers. All have proved to be successful with Atomic providing
new quotes daily.
The Debtors knew that the reward for their efforts would be
painfully slow. However, they were determined to reestablish the
financial success, and creditor confidence, that they enjoyed for
years. They knew that they could not do this without a period of
breathing room from the demands of their creditors. To obtain that
relief, the Debtors initiated the cases by filing a voluntary
petition for reorganizational relief under Chapter 11 of the
Bankruptcy Code on February 5, 2023 (the "Petition Date").
Class 20 General Unsecured Claims. Class 20 consists of the
following 2 subclasses, which shall receive equal treatment:
* Class 20(a) consists of the allowed general unsecured claim
held by USSCA against TOS; and
* Class 20(b) consists of all other allowed general unsecured
claims against the Debtors, excluding any general unsecured claim,
in the form of a loan, a capital contribution, or other claim, held
by equity security holders under Bankruptcy Code Section 101(17)
("Equity Security Holders") that are identified in the Debtors'
schedules.
Class 20(a) and Class 20(b) shall each receive the full amount of
their claims. The Creditors' Trust shall pay equal quarterly
payments to Class 20(a) and Class 20(b), contemporaneously, pari
passu, and on a pro rata basis, for five years. The first payment
to Class 20(a) and Class 20(b) claimants shall become due 60 days
after the Effective Date.
The Creditors' Trust shall not be penalized for making Class 20(a)
and Class 20(b) payments prior to such payments' respective due
dates. Furthermore, to the extent 20(a) or 20(b) claimants agree to
be paid a lesser amount of their claim in a discounted lump sum at
a date that is earlier than the sixtieth month of the Plan, the
Reorganized Debtor shall have the right to agree to such
arrangement. USSCA and Class 20(b) are deemed impaired under
Bankruptcy Code section 1124.
Class 21 consists of the Debtors' Equity Security Holders. Clyde W.
Colburn and Mr. Lindsey Cochran Bowman are the Debtors' sole Equity
Security Holders of TOS. On the Effective Date pre-petition equity
shall be cancelled, and new shares in the consolidated Reorganized
Debtor shall be distributed to Mr. Colburn and Mr. Bowman as
follows:
* Mr. Colburn shall receive 49% of the newly issued shares in
the Reorganized Debtor, plus a 2% proxy giving Mr. Colburn a
controlling interest;
* Mr. Bowman shall receive 51% of the newly issued shared in
the Reorganized Debtor, minus a 2% proxy giving Mr. Colburn a
controlling interest.
Other than the ordinary course wages that get paid to Mr. Colburn,
no distributions or dividends shall be made by the Reorganized
Debtor or Creditors' Trust to the Equity Security Holders until the
later of, (i) the life of the Plan or, (ii) such time as all
allowed Class 20 claims are paid in full. Class 21 is unimpaired
under Bankruptcy Code section 1124.
Payments and Distributions under the Plan will be funded by the Net
Income from the Reorganized Debtor's business operations, as well
as Committed Funds from the Plan Sponsor, if and when necessary.
A full-text copy of the Disclosure Statement dated August 14, 2023
is available at https://urlcurt.com/u?l=V6a2Ey from
PacerMonitor.com at no charge.
Counsel for the Debtors:
Michael R. Dal Lago, Esq.
Christian Garrett Haman, Esq.
Dal Lago Law
999 Vanderbilt Beach Road, Suite 200
Naples, FL 34108
Telephone: (239) 571-6877
Email: mike@dallagolaw.com
chaman@dallagolaw.com
About Technical Ordnance Solutions
Technical Ordnance Solutions, LLC is a manufacturer of ordnance
accessories in Naples Fla.
Technical Ordnance Solutions sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. M.D. Fla. Case No. 23-00125) on
Feb. 5, 2023, with up to $100,000 in assets and up to $10 million
in liabilities. Clyde William Colburn, III, owner of Technical
Ordnance Solutions, signed the petition.
Judge Caryl E. Delano oversees the case.
Mike Dal Lago, Esq., at Dal Lago Law, represents the Debtor as
legal counsel.
TRANSIT PHYSICAL: Wins Cash Collateral Access Thru Dec 31
---------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California,
Riverside Division, authorized Transit Physical Therapy PC, d/b/a
Transit Physical Therapy, to continue using cash collateral on an
interim basis.
The Debtor is permitted to use cash collateral in accordance with
the budget, with a 15% variance.
Each creditor with a security interest in cash collateral is
granted adequate protection in the form of a replacement lien,
dollar for dollar, in the same priority and to the same extent as
the creditor's pre-petition lien and security interest.
The Debtor will continue making adequate protection payments to the
Small Business Administration in the amount of $7,580 per month.
The Debtor will make payments to EBF Holding, LLC beginning July
2023 in the amount of $2,052 per month as adequate protection
payments.
As previously reported by the Troubled Company Reporter, six
creditors have a blanket security interest that generally covers
"all of Debtor's assets" or other clearly stated language that
gives that creditor a security interest in the Debtor's cash,
accounts, or accounts receivable:
1. The senior secured creditor is U.S. Small Business
Administration, secured by a UCC-1 Financing Statement filed on
April 7, 2020 as Filing Number 20-7772039118. The balance of the
loan on the Petition Date is approximately $500,000.
2. The second secured creditor is U.S. Small Business
Administration, secured by a UCC-1 Financing Statement filed on
December 6, 2021 as Filing Number U210107885327. The collateral for
the loan is all assets and proceeds therefrom. The balance of the
loan on the Petition Date is approximately $2.066 million.
3. The third secured creditor is Banker's Healthcare Group,
secured by a UCC-1 Financing Statement filed on July 21, 2022 as
Filing Number U220212234829. The collateral for the loan is all
assets and proceeds therefrom. The balance of the loan on the
Petition Date is approximately $99,955.
4. The fourth secured creditor is Itria Ventures LLC, secured
by a UCC-1 Financing Statement filed on November 23, 2022 as Filing
Number U220246326936. The collateral for the loan is all assets and
proceeds therefrom. The balance of the loan on the Petition Date is
approximately $400,000.
5. The fifth secured creditor is Seamless Capital Group, LLC,
secured by a UCC-1 Financing Statement filed on February 21, 2023
as Filing Number U230012279933. The collateral for the loan is all
assets and proceeds therefrom. The balance of the loan on the
Petition Date is approximately $392,088.
6. The sixth secured creditor is Everest Business Funding
secured by a UCC-1 Financing Statement filed on March 15, 2023 as
Filing Number U230017915727. The collateral for the loan is all
assets and proceeds therefrom. The balance of the loan on the
Petition Date is approximately $350,000.
A copy of the Court's order and the Debtor's budget is available at
https://urlcurt.com/u?l=i1iUV7 from PacerMonitor.com.
The Debtor projects total operating expenses, on a monthly basis,
as follows:
$442,993 for September 2023;
$438,255 for October 2023;
$443,701 for November 2023; and
$449,224 for December 2023.
About Transit Physical Therapy PC
Transit Physical Therapy PC offers personal rehabilitation services
including physical therapy, occupational therapy, and speech and
language pathology.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 23-11057) on March 20,
2023. In the petition signed by Mitree Michael Piromgraipakd, its
president, the Debtor disclosed $2,700,328 in assets and $4,147,237
in liabilities.
Judge Scott H. Yun oversees the case.
Todd Turoci, Esq., at the Turoci Firm, represents the Debtor as
legal counsel.
UNITED ENGINEERS: Voluntary Chapter 11 Case Summary
---------------------------------------------------
Debtor: United Engineers, Inc.
9301 Southwest Freeway
Suite 500
Houston, TX 77074
Business Description: The Debtor provides architectural,
engineering, and related services.
Chapter 11 Petition Date: August 19, 2023
Court: United States Bankruptcy Court
Southern District of Texas
Case No.: 23-33166
Debtor's Counsel: Melissa A. Haselden, Esq.
HASELDEN FARROW PLLC
700 Milam, Suite 1300
Pennzoil Place
Houston, TX 77002
Tel: (832) 819-1149
Email: mhaselden@haseldenfarrow.com
Total Assets as of July 31, 2023: $2,356,290
Total Liabilities as of July 31, 2023: $909,388
The petition was signed by Kefelegne Tesfaye as vice president.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A copy of the Debtor's petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/CYB5TTA/United_Engineers_Inc__txsbke-23-33166__0001.0.pdf?mcid=tGE4TAMA
UNITED PF: Lord Abbett CB Fund Marks $17MM Loan at 25% Off
----------------------------------------------------------
Lord Abbett Corporate Bond Fund has marked its $12,211,888 loan
extended to United FP Holdings LLC to market at $12,873,029 or 75%
of the outstanding amount, as of May 31, 2023, according to
Corporate Bond's semi-annual report on Form N-CSR for the period
from December 1, 2022 to May 31, 2023, filed with the Securities
and Exchange Commission.
Lord Abbett Corporate Bond Fund is a participant in a 2019 First
Lien Term Loan to United FP Holdings LLC. The loan accrues
interest at a rate of 9.16% (3 mo. USD LIBOR + 4 %) per annum. The
loan matures on December 30, 2026.
Lord Abbett Investment Trust is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end
management investment company and was organized as a Delaware
statutory trust on August 16, 1993. The Trust currently consists of
14 funds as of May 31, 2023. The semi-annual report covers 12 of
the funds namely: Lord Abbett Convertible Fund, Lord Abbett Core
Fixed Income Fund, Lord Abbett Core Plus Bond Fund, Lord Abbett
Corporate Bond Fund, Lord Abbett Floating Rate Fund, Lord Abbett
High Yield Fund, Lord Abbett Income Fund, Lord Abbett Inflation
Focused Fund, Lord Abbett Short Duration Core Bond Fund, Lord
Abbett Total Return Fund, Lord Abbett Ultra Short Bond Fund.
United PF Holdings, LLC operates fitness and recreation centers.
UNITED PF: Lord Abbett CB Fund Marks $4MM Loan at 27% Off
---------------------------------------------------------
Lord Abbett Corporate Bond Fund has marked its $4,000,000 loan
extended to United FP Holdings LLC to market at $2,900,000 or 73%
of the outstanding amount, as of May 31, 2023, according to
Corporate Bond's semi-annual report on Form N-CSR for the period
from December 1, 2022 to May 31, 2023, filed with the Securities
and Exchange Commission.
Lord Abbett Corporate Bond Fund is a participant in a 2019 Second
Lien Term Loan to United FP Holdings LLC. The loan accrues interest
at a rate of 13.66% (3 mo. USD LIBOR + 8.50 %) per annum. The loan
matures on December 30, 2027.
Lord Abbett Investment Trust is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end
management investment company and was organized as a Delaware
statutory trust on August 16, 1993. The Trust currently consists of
14 funds as of May 31, 2023. The semi-annual report covers 12 of
the funds namely: Lord Abbett Convertible Fund, Lord Abbett Core
Fixed Income Fund, Lord Abbett Core Plus Bond Fund, Lord Abbett
Corporate Bond Fund, Lord Abbett Floating Rate Fund, Lord Abbett
High Yield Fund, Lord Abbett Income Fund, Lord Abbett Inflation
Focused Fund, Lord Abbett Short Duration Core Bond Fund, Lord
Abbett Total Return Fund, Lord Abbett Ultra Short Bond Fund.
United PF Holdings, LLC operates fitness and recreation centers.
UNITED STATES STEEL: S&P Places 'BB-' ICR on Watch Developing
-------------------------------------------------------------
S&P Global Ratings placed its 'BB-' issuer credit rating on United
States Steel Corp. (U.S. Steel) on CreditWatch with developing
implications.
S&P expects to resolve the CreditWatch once a clear path emerges
from U.S. Steel's review process or a potential transaction appears
imminent.
S&P said, "The CreditWatch placement indicates that we could raise,
lower, or affirm our issuer credit rating on U.S. Steel based on a
wide range of possible outcomes. Two bidders announced unsolicited
acquisitions for the company a few days ago. Prior to receiving the
bids, U.S. Steel announced a formal review of its strategic
alternatives, which could include the sale of all or part of the
company. Simultaneously, the company stated that there is no
guarantee the strategic review will lead to a transaction or other
outcome. In addition, U.S. Steel said that it had received multiple
unsolicited proposals that ranged from the purchase of certain
production assets to the acquisition of the entire company.
"Currently, we see a range of potential rating outcomes for U.S.
Steel depending on unusually significant strategic and financial
shifts. The impact of these proposals on the company's credit
profile is uncertain until management clarifies its strategic
decisions and their effect on its capital structure. We view the
situation as highly fluid, thus we do not make any assumptions
about likely scenarios."
U.S. Steel is currently undertaking multiple capital
projects--including the $3 billion, 3 million ton Big River 2
project--as it continues the strategic repositioning of its
operating footprint to include more electric arc furnaces (EAFs)
versus high carbon-emitting, coal-fired blast furnaces. As of the
end of the second quarter of 2023, the company had committed
approximately 87% of its planned spending and executed 59% of the
project.
S&P said, "We expect to resolve the CreditWatch placement once we
receive sufficient clarity on U.S. Steel's strategic plans and the
path of any proposed transactions.
"We could lower our rating on U.S. Steel if it undertakes any
leveraging defensive actions, which could include asset sales that
weaken its business position or leveraged distributions to its
equity holders.
"We would expect any takeover of U.S. Steel to face meaningful
regulatory hurdles, particularly from an existing domestic player.
A potential takeover would follow significant consolidation in the
U.S steel market over the last 5 years. The proposed combination
with Cliffs could further consolidate more than a century of iron
and steel production in the U.S. Midwest. Regardless, acquiring
U.S. Steel would provide any buyer with meaningful scale and an
operating footprint that cannot be easily replicated. However,
there is ample steel capacity around the world, thus any pro forma
entity would still be exposed to the industry's large price swings
and volatile cash flows. Moreover, we see potential for any
acquisition to increase the company's debt, thus we expect any pro
forma entity would likely need to reduce its debt and complete the
integration of the two companies, to demonstrate an improvement in
its performance, before it would warrant a higher rating."
VECTOR ESCAPES: Seeks Cash Collateral Access
--------------------------------------------
Vector Escapes, Inc. asks the U.S. Bankruptcy Court for the
District of Nevada for authority to use cash collateral in
accordance with the budget.
Pre-petition, the Debtor obtained a loans from CDC Small Business
Finance, Celtic Bank and the Small Business Administration, which
are secured by essentially all of the Debtor's personal property,
including deposit accounts.
The Debtor owes CDC approximately $147,075, owes Celtic
approximately $140,498 and owes the SBA approximately $275,500.
At the time the case was filed, the Debtor's personal property was
valued at $44,662, which includes cash and cash equivalents of
$35,862, Equipment valued at $6,250, inventory valued at $1,450 and
other miscellaneous assets valued at $1,100.
The Debtor estimates it will have a total of $24,225 in monthly
operating expenses.
The Debtor asserts that its use of Secured Creditors' cash
collateral to maintain and operate its business protects Secured
Creditor. The Debtor is also willing to grant secured creditors a
replacement lien against all cash received by the Debtor
post-petition.
A copy of the motion and the Debtor's budget is available at
https://urlcurt.com/u?l=wAszJV from PacerMonitor.com.
About Vector Escapes, Inc.
Vector Escapes, Inc. operates an escape room business in Reno,
Nevada. The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Nev. Case No. 23-50553-hlb) on August 8,
2023. In the petition signed by Josh Morton, president, the Debtor
disclosed up to $500,000 in assets and up to $1 million in
liabilities.
Kevin A. Darby, Esq., at Darby Law Practice, represents the Debtor
as legal counsel.
WELLPATH HOLDINGS: Lord Abbett CB Fund Marks $23MM Loan at 31% Off
------------------------------------------------------------------
Lord Abbett Corporate Bond Fund has marked its $23,321,231 loan
extended to Wellpath Holdings, Inc to market at $16,004,311 or 69%
of the outstanding amount, as of May 31, 2023, according to
Corporate Bond's semi-annual report on Form N-CSR for the period
from December 1, 2022 to May 31, 2023, filed with the Securities
and Exchange Commission.
Lord Abbett Corporate Bond Fund is a participant in a 2018 First
Lien Term Loan to Wellpath Holdings, Inc. The loan accrues interest
at a rate of 10.654% - 10.98% per annum. The loan matures on
October 1, 2025.
Lord Abbett Investment Trust is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end
management investment company and was organized as a Delaware
statutory trust on August 16, 1993. The Trust currently consists of
14 funds as of May 31, 2023. The semi-annual report covers 12 of
the funds namely: Lord Abbett Convertible Fund, Lord Abbett Core
Fixed Income Fund, Lord Abbett Core Plus Bond Fund, Lord Abbett
Corporate Bond Fund, Lord Abbett Floating Rate Fund, Lord Abbett
High Yield Fund, Lord Abbett Income Fund, Lord Abbett Inflation
Focused Fund, Lord Abbett Short Duration Core Bond Fund, Lord
Abbett Total Return Fund, Lord Abbett Ultra Short Bond Fund.
Wellpath, headquartered in Nashville, Tennessee, provides medical,
dental, and behavioral health services to patients in local
detention facilities, federal and state prisons and behavioral
healthcare facilities. Wellpath is privately owned by H.I.G.
Capital.
YS GARMENTS: Moody's Lowers CFR & Senior Secured Loans to Caa1
--------------------------------------------------------------
Moody's Investors Service downgraded YS Garments, LLC's (dba "Next
Level Apparel") ratings including its corporate family rating to
Caa1 from B3 and probability of default rating to Caa1-PD from
B3-PD. Moody's also downgraded its senior secured bank credit
facilities ratings to Caa1 from B3. The outlook remains stable.
The downgrade reflects the company's severely weakened credit
metrics due to a pull-back in customer demand, elevated inventory
costs and higher interest rates. These negative impacts started in
2H'22 and were expected to reverse in 2023. However, the earnings
declines worsened in Q22023 and the underperformance is expected to
persist through end 2023. As a result, Moody's adjusted debt/EBITDA
is expected to be in excess of 9.0x and Moody's adjusted
EBITA/interest is anticipated to be about 0.6x year-end. The weak
performance has required the company to request and receive relief
on its leverage covenant by replacing it with a minimum EBITDA and
minimum liquidity covenants through 3Q'24. The company's equity
owners have contributed $25 million of preferred equity which will
be used to repay $22.5 million of senior secured term loan at par
and $2.5 million of borrowings under its senior secured revolving
credit facility.
The downgrade also reflects governance considerations, particularly
that Next Level Apparel has been unable to meet performance
expectations. The rating also continues to consider the financial
strategy risk associated with being owned by a private equity
sponsor, particularly Next Level Apparel's high leverage. Moody's
has revised Next Level Apparel's Governance Issuer Profile Score
(IPS) to G-5 (very highly negative) from G-4 (highly negative).
Concurrently, Moody's has revised the company Credit Impact Score
to CIS-5 (very highly negative) from CIS-4 (highly negative).
The stable outlook reflects Moody's expectation that revenues,
margins and cashflow should stabilize in 2H'23 and start improving
in 2024 as the company benefits from normalized customer
replenishment patterns, lower inventory costs and the working
capital benefit from inventory reduction.
Downgrades:
Issuer: YS Garments, LLC
Corporate Family Rating, Downgraded to Caa1 from B3
Probability of Default Rating, Downgraded to Caa1-PD from B3-PD
Backed Senior Secured Bank Credit Facility, Downgraded to Caa1
from B3
Outlook Actions:
Issuer: YS Garments, LLC
Outlook, Remains Stable
RATINGS RATIONALE
Next Level Apparel's Caa1 CFR reflects its small revenue scale and
narrow product focus relative to the global apparel industry. The
rating also reflects its high concentration of sales with three
large distributor customers which can cause significant volatility
in performance. The rating also reflects Next Level's currently
very high leverage and weak interest coverage. The rating is
supported by Next Level Apparel's well-recognized position within
premium blanks and the limited fashion risk of its product.
Consideration is also given to the shift in consumer preference
towards higher quality basic apparel designs, fabric, and fit and
Next Level Apparel's asset-light and fully outsourced production
model which in a stable environment allowed for strong profit
margins that were consistent with many premium apparel brands.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if the company returns to historical
levels of profitability, reduces dependency on its revolver and has
good liquidity which is supported by strong free cash flow
generation. Quantitatively, the ratings could be upgraded if
lease-adjusted debt/EBITDA is sustained below 6.5x and
EBITA/Interest is sustained over 1.5x.
The ratings could be downgraded if the company's overall operating
performance or liquidity profile is worse than expected, including
sustained free cash flow deficits. Ratings could also be downgraded
should the probability of default increase for any reason or
recovery expectations are reduced.
Headquartered in Torrance, California, YS Garments, LLC's (dba
"Next Level Apparel") designs and provides branded active wear to
the premium basic segment of the US wholesale wearables promotional
products industry. Private equity firm Blue Point Capital Partners
acquired a majority stake in the company in August 2018.
The principal methodology used in these ratings was Apparel
published in June 2021.
ZEBRA TECHNOLOGIES: Moody's Affirms 'Ba1' CFR, Outlook Stable
-------------------------------------------------------------
Moody's Investors Service affirmed Zebra Technologies Corporation's
Ba1 Corporate Family Rating and Ba1-PD Probability of Default
Rating. The Speculative Grade Liquidity ("SGL") rating was
downgraded to SGL-2 from SGL-1. The outlook is stable.
Affirmations:
Issuer: Zebra Diamond Holdings Limited
Senior Secured Bank Credit Facility, Affirmed Ba1
Issuer: Zebra Technologies Corporation
Corporate Family Rating, Affirmed Ba1
Probability of Default Rating, Affirmed Ba1-PD
Senior Secured Bank Credit Facility, Affirmed Ba1
Downgrades:
Issuer: Zebra Technologies Corporation
Speculative Grade Liquidity Rating, Downgraded to SGL-2 from
SGL-1
Outlook Actions:
Issuer: Zebra Diamond Holdings Limited
Outlook, Remains Stable
Issuer: Zebra Technologies Corporation
Outlook, Remains Stable
RATINGS RATIONALE
The Ba1 CFR reflects Zebra's leading positions in core businesses,
including mobile computing, data capture, barcode printing, and
services. Moreover, Zebra's longstanding customer relationships and
large installed base of products provide recurring supplies and
services revenues. This supports underlying organic growth, which
has averaged 6 percent over 2016-2022, augmented by capability
enhancing acquisitions, particularly in the areas of machine
vision, industrial automation and software. Since the end of 2015
(the first full year following the company's acquisition of
Motorola Solutions, Inc.'s Enterprise business), Zebra has
increased revenues by about $1.9 billion to $5.5 billion for LTM
period ending July 1, 2023.
The credit profile is constrained by Zebra's propensity for M&A,
which in some cases has resulted in material increases in leverage.
Zebra has made nine acquisitions since 2018 for total net
consideration of approximately $2.2 billion. Most recently in 2022,
Zebra acquired Matrox Electronic Systems Ltd. ("Matrox"), a
developer of advanced machine vision components and software, for
$881 million in cash. With an amendment to its credit facility in
the same year, funded debt balances increased to about $2 billion
at year end from just under $1 billion at the end of 2021. However,
Moody's expect leverage to increase to about 3.2x at the end of
2023, relative to Moody's leverage downgrade trigger of 3x, giving
Zebra little flexibility to pursue further acquisitions and weather
more elongated business cyclicality.
Zebra does benefit from good underlying growth within its core
capabilities including enterprise mobile computing, data capture,
thermal printing and associated support services. Core growth of
4%-5% along with high-single digit growth in adjacencies and double
digit growth in the company's identified expansion areas including
fixed industrial scanning, warehouse automation and software,
supports long term organic growth of 5%-7%. However, growth can be
cyclical, as evidenced by near term results, and the company has
been adversely affected by supply chain constraints. While the
company has relatively diversified end market exposure, it is
guiding towards organic sales declines in excess of 20% for this
year. Zebra's end markets have seen a sharp pullback in demand,
with mobile computing particularly hard hit, amplified by
distributor destocking activity, with these trends expected to
continue for the remainder of the year.
The stable outlook reflects Moody's expectation that revenues will
decline in excess of 20% this year while rebounding somewhat next
year, with improving margins beyond this year as the impact of
supply shortages and higher freight costs continues to ease and the
company benefits from cost actions, partially offsetting loss of
operating leverage. Moody's also expects that Zebra will continue
to balance its capital allocation across shareholder return,
acquisitions, and debt repayment to maintain leverage within its
target range (1.5x - 2.5x reported net debt to EBITDA). In
addition, in 2024, Zebra should return to positive free cash flow
to debt as revenue growth resumes and the company completes its
final settlement payment. In June 2022 Zebra entered into a license
and settlement agreement with Honeywell International Inc.,
resolving patent-related litigation, agreeing to pay $360 million
in eight quarterly installments, concluding Q1 2024.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings could be upgraded if Zebra generates consistent revenue
growth above the low single digit percentage range with expanding
EBITDA margins, increasing free cash flow, and debt to EBITDA
maintained at less than 2.0x (Moody's adjusted). Zebra would also
need to maintain very good liquidity and a balanced financial
policy as well as refrain from debt-financed returns to
shareholders or frequent sizable debt financed transactions.
Ratings could be downgraded if revenues fail to grow in line with
the industry or if margins weaken. Ratings could also be downgraded
if Moody's expects that debt to EBITDA will be sustained above 3.0x
(Moody's adjusted).
Instrument ratings reflect both Zebra's Ba1-PD Probability of
Default Rating and the average expected loss of individual debt
instruments in a default scenario. The Ba1 ratings on the Revolver
and Term Loan A are in line with the Ba1 Corporate Family Rating
(CFR) as the secured debt represents the preponderance of funded
debt with seniority in the capital structure given a 1st lien on
collateral. Zebra's receivables financing facilities benefit from a
first-priority security interest in U.S. domestically originated
accounts receivable.
The downgrade of the Speculative Grade Liquidity (SGL) rating to
SGL-2 from SGL-1 reflects Zebra's increased near term reliance on
the revolver and diminished headroom to the company's financial
maintenance leverage covenant. Moody's expects significantly weaker
internal liquidity generation in 2023 with a free cash flow use of
around $100 million, in part due to $180 million in settlement
payments, as well as anticipated top line declines, restructuring
charges and increased cash taxes. Liquidity is supplemented by the
$1.5 billion revolving credit facility terminating in 2027, which
had availability of about $1.1 billion at July 1, 2023. Zebra had
$68 million in cash at July 1, 2023.
Moody's expects Zebra will maintain sufficient if diminished
cushion to the credit facilities' two financial maintenance
covenants (3.25x secured net leverage and 3.00x consolidated
interest coverage) over the next 12 months.
The principal methodology used in these ratings was Diversified
Technology published in February 2022.
Based in Lincolnshire, IL, Zebra Technologies Corporation is a
provider of mobile computers, barcode scanners, and specialized
printers serving retail/ecommerce, manufacturing, transportation
and logistics, healthcare, and other industries. Revenues were $5.5
billion for the LTM period ended July 1, 2023.
[^] BOND PRICING: For the Week from August 14 to 18, 2023
---------------------------------------------------------
Company Ticker Coupon Bid Price Maturity
------- ------ ------ --------- --------
99 Escrow Issuer Inc NDN 7.500 37.667 1/15/2026
99 Escrow Issuer Inc NDN 7.500 38.301 1/15/2026
99 Escrow Issuer Inc NDN 7.500 38.301 1/15/2026
Acorda Therapeutics Inc ACOR 6.000 64.485 12/1/2024
Air Methods Corp AIRM 8.000 1.000 5/15/2025
Air Methods Corp AIRM 8.000 0.686 5/15/2025
Amgen Inc AMGN 2.250 99.912 8/19/2023
Amyris Inc AMRS 1.500 11.250 11/15/2026
Audacy Capital Corp CBSR 6.750 1.902 3/31/2029
Audacy Capital Corp CBSR 6.500 1.359 5/1/2027
Audacy Capital Corp CBSR 6.750 1.878 3/31/2029
BPZ Resources Inc BPZR 6.500 3.017 3/1/2049
Bed Bath & Beyond Inc BBBY 5.165 0.690 8/1/2044
Bed Bath & Beyond Inc BBBY 4.915 0.740 8/1/2034
Biora Therapeutics Inc BIOR 7.250 54.606 12/1/2025
Boingo Wireless Inc WIFI 1.000 93.125 10/1/2023
Brixmor LLC BRX 6.900 9.875 2/15/2028
Citigroup Global
Markets Holdings
Inc/United States C 6.050 95.443 9/28/2023
Citigroup Inc C 4.069 97.371 8/30/2023
Clovis Oncology Inc CLVS 1.250 11.111 5/1/2025
Clovis Oncology Inc CLVS 4.500 10.127 8/1/2024
Clovis Oncology Inc CLVS 4.500 9.749 8/1/2024
Curo Group Holdings Corp CURO 7.500 24.172 8/1/2028
Curo Group Holdings Corp CURO 7.500 24.256 8/1/2028
DIRECTV Holdings
LLC / DIRECTV
Financing Co Inc DTV 6.000 15.706 8/15/2040
DIRECTV Holdings
LLC / DIRECTV
Financing Co Inc DTV 6.350 9.442 3/15/2040
Diamond Sports Group
LLC / Diamond
Sports Finance Co DSPORT 5.375 2.750 8/15/2026
Diamond Sports Group
LLC / Diamond
Sports Finance Co DSPORT 6.625 2.125 8/15/2027
Diamond Sports Group
LLC / Diamond
Sports Finance Co DSPORT 5.375 2.863 8/15/2026
Diamond Sports Group
LLC / Diamond
Sports Finance Co DSPORT 5.375 3.440 8/15/2026
Diamond Sports Group
LLC / Diamond
Sports Finance Co DSPORT 6.625 2.000 8/15/2027
Diamond Sports Group
LLC / Diamond
Sports Finance Co DSPORT 5.375 3.440 8/15/2026
Diamond Sports Group
LLC / Diamond
Sports Finance Co DSPORT 5.375 2.863 8/15/2026
DocuSign Inc DOCU 0.500 97.542 9/15/2023
Endo Finance LLC /
Endo Finco Inc ENDP 5.375 5.000 1/15/2023
Endo Finance LLC /
Endo Finco Inc ENDP 5.375 5.000 1/15/2023
Energy Conversion
Devices Inc ENER 3.000 0.551 6/15/2013
Envision Healthcare EVHC 8.750 3.000 10/15/2026
Envision Healthcare EVHC 8.750 3.000 10/15/2026
Exela Intermediate
LLC / Exela
Finance Inc EXLINT 11.500 10.684 7/15/2026
Exela Intermediate
LLC / Exela
Finance Inc EXLINT 11.500 11.433 7/15/2026
Federal Farm Credit
Banks Funding Corp FFCB 3.250 99.803 8/18/2023
Federal Home Loan Banks FHLB 3.300 99.337 8/28/2023
Federal Home Loan Banks FHLB 2.450 99.351 8/24/2023
Federal Home Loan Banks FHLB 3.375 99.797 8/22/2023
Federal Home Loan Banks FHLB 3.170 99.380 8/22/2023
Federal Home Loan Banks FHLB 3.170 99.359 8/25/2023
Federal Home Loan Banks FHLB 3.250 99.736 8/23/2023
Federal Home Loan Banks FHLB 3.100 99.379 8/22/2023
Federal Home Loan Banks FHLB 3.250 99.381 8/22/2023
Federal Home Loan Banks FHLB 2.550 99.344 8/25/2023
Federal Home Loan Banks FHLB 2.375 99.349 8/24/2023
Federal National
Mortgage Association FNMA 0.360 99.879 8/18/2023
First Republic Bank/CA FRCB 4.375 0.360 8/1/2046
First Republic Bank/CA FRCB 4.625 0.643 2/13/2047
GNC Holdings Inc GNC 1.500 0.470 8/15/2020
Goodman Networks Inc GOODNT 8.000 1.000 5/31/2022
H-Food Holdings
LLC / Hearthside
Finance Co Inc HEFOSO 8.500 39.383 6/1/2026
H-Food Holdings
LLC / Hearthside
Finance Co Inc HEFOSO 8.500 39.530 6/1/2026
HSBC USA Inc HSBC 6.250 100.000 8/23/2023
Hallmark Financial
Services Inc HALL 6.250 20.910 8/15/2029
Inseego Corp INSG 3.250 40.580 5/1/2025
Invacare Corp IVC 5.000 83.125 11/15/2024
Invacare Corp IVC 4.250 4.242 3/15/2026
JPMorgan Chase & Co JPM 2.000 86.342 8/20/2031
JPMorgan Chase Bank NA JPM 2.000 81.604 9/10/2031
Lightning eMotors Inc ZEV 7.500 44.190 5/15/2024
MBIA Insurance Corp MBI 16.830 3.000 1/15/2033
MBIA Insurance Corp MBI 16.905 3.000 1/15/2033
Macquarie
Infrastructure
Holdings LLC MIC 2.000 97.499 10/1/2023
Macy's Retail Holdings M 6.900 86.292 1/15/2032
Macy's Retail Holdings M 7.875 94.080 3/1/2030
Macy's Retail Holdings M 7.875 94.080 3/1/2030
Mashantucket Western
Pequot Tribe MASHTU 7.350 41.250 7/1/2026
Morgan Stanley MS 6.480 99.783 8/24/2023
Morgan Stanley MS 1.800 70.834 8/27/2036
Morgan Stanley Finance MS 12.100 21.210 11/24/2023
NOA Bancorp Inc NOABAN 6.700 92.759 11/1/2028
NOA Bancorp Inc NOABAN 6.700 92.759 11/1/2028
National CineMedia LLC NATCIN 5.750 5.000 8/15/2026
New York Community
Bancorp Inc NYCB 5.900 93.722 11/6/2028
OMX Timber Finance
Investments II LLC OMX 5.540 0.850 1/29/2020
Party City Holdings Inc PRTY 8.750 14.750 2/15/2026
Party City Holdings Inc PRTY 10.821 13.046 7/15/2025
Party City Holdings Inc PRTY 6.625 0.763 8/1/2026
Party City Holdings Inc PRTY 8.750 14.500 2/15/2026
Party City Holdings Inc PRTY 6.625 0.763 8/1/2026
Party City Holdings Inc PRTY 10.821 13.046 7/15/2025
PeoplesBancorp MHC PEOPBC 5.375 90.124 11/15/2028
PeoplesBancorp MHC PEOPBC 5.375 90.124 11/15/2028
Photo Holdings
Merger Sub Inc SFLY 8.500 46.000 10/1/2026
Photo Holdings
Merger Sub Inc SFLY 8.500 47.541 10/1/2026
Porch Group Inc PRCH 0.750 36.000 9/15/2026
Radiology Partners Inc RADPAR 9.250 39.652 2/1/2028
Radiology Partners Inc RADPAR 9.250 39.698 2/1/2028
Renco Metals Inc RENCO 11.500 24.875 7/1/2003
Rite Aid Corp RAD 7.700 21.202 2/15/2027
Rite Aid Corp RAD 7.500 59.354 7/1/2025
Rite Aid Corp RAD 7.500 57.978 7/1/2025
Rite Aid Corp RAD 6.875 20.588 12/15/2028
Rite Aid Corp RAD 6.875 20.588 12/15/2028
RumbleON Inc RMBL 6.750 41.644 1/1/2025
SBL Holdings Inc SECBEN 7.000 60.000 N/A
SBL Holdings Inc SECBEN 7.000 62.625 N/A
SVB Financial Group SIVB 4.000 6.875 N/A
SVB Financial Group SIVB 4.100 5.502 N/A
SVB Financial Group SIVB 4.700 5.504 N/A
SVB Financial Group SIVB 4.250 5.015 N/A
Shift Technologies Inc SFT 4.750 9.435 5/15/2026
Signature Bank/
New York NY SBNY 4.000 2.000 10/15/2030
Signature Bank/
New York NY SBNY 4.125 2.125 11/1/2029
Talen Energy Supply LLC TLN 6.500 30.754 6/1/2025
Talen Energy Supply LLC TLN 10.500 34.750 1/15/2026
Talen Energy Supply LLC TLN 6.500 26.375 9/15/2024
Talen Energy Supply LLC TLN 6.500 26.375 9/15/2024
Talen Energy Supply LLC TLN 10.500 34.750 1/15/2026
Talen Energy Supply LLC TLN 7.000 26.375 10/15/2027
Talen Energy Supply LLC TLN 10.500 34.750 1/15/2026
Team Health Holdings Inc TMH 6.375 70.055 2/1/2025
Team Health Holdings Inc TMH 6.375 64.582 2/1/2025
TerraVia Holdings Inc TVIA 5.000 4.644 10/1/2019
Tricida Inc TCDA 3.500 10.143 5/15/2027
US Renal Care Inc USRENA 10.625 38.907 7/15/2027
US Renal Care Inc USRENA 10.625 39.950 7/15/2027
UpHealth Inc UPH 6.250 40.500 6/15/2026
Veritone Inc VERI 1.750 36.000 11/15/2026
WeWork Cos Inc WEWORK 7.875 19.645 5/1/2025
WeWork Cos Inc WEWORK 7.875 18.851 5/1/2025
WeWork Cos LLC /
WW Co-Obligor Inc WEWORK 5.000 40.500 7/10/2025
WeWork Cos LLC /
WW Co-Obligor Inc WEWORK 5.000 40.250 7/10/2025
Wesco Aircraft Holdings WAIR 9.000 9.500 11/15/2026
Wesco Aircraft Holdings WAIR 13.125 7.750 11/15/2027
Wesco Aircraft Holdings WAIR 8.500 4.000 11/15/2024
Wesco Aircraft Holdings WAIR 9.000 10.369 11/15/2026
Wesco Aircraft Holdings WAIR 13.125 4.643 11/15/2027
Wesco Aircraft Holdings WAIR 8.500 4.757 11/15/2024
Zions Bancorp NA ZION 7.200 84.000 N/A
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
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Troubled Company Reporter is a daily newsletter co-published
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