/raid1/www/Hosts/bankrupt/TCR_Public/230823.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Wednesday, August 23, 2023, Vol. 27, No. 234
Headlines
246-18 REALTY: Court OKs Cash Collateral Access Thru Sept 8
2CM LLC: Files Emergency Bid to Use Cash Collateral
5200 SAMPLE: Court OKs Interim Cash Collateral Access
5280 AURARIA: Court Approves Disclosure Statement
560 SEVENTH AVENUE: Court OKs Cash Collateral Access Thru Sept 5
80 WEST WASHINGTON: Case Summary & Six Unsecured Creditors
ACPRODUCTS INC: Lord Abbett CB Marks $19.4MM Loan at 18% Off
ADVANCED INFRASTRUCTURE: Wins Cash Collateral Access on Final Basis
AGSPRING LLC: Court OKs Deal on Cash Collateral Access
API HOLDINGS: Guggenheim SOF Marks $1.5MM Loan at 32% Off
ARIAN MOWLAVI: PCO Submits Sixth Interim Report
ASTON FINCO: Guggenheim SOF Marks $1.6MM Loan at 17% Off
ATRIX TRUCKING: Wins Interim Cash Collateral Access
AVISON YOUNG: Guggenheim SOF Marks $2.3MM Loan at 29% Off
BELA FLOR: Voluntary Chapter 11 Case Summary
BH 7904 11 FLR: Sept. 27 Hearing on Disclosure Statement
BLUEKEY CONSTRUCTION: Court OKs Cash Collateral Access Thru Dec 31
BROWNIE'S MARINE: Incurs $190K Net Loss in Second Quarter
CELSIUS NETWORK: Kelly Says Disclosures Inadequate
CLAREHOUSE LIVING: No Decline in Patient Care, 9th PCO Report Says
CLEAN BEAUTY: Case Summary & 30 Largest Unsecured Creditors
CLEAN ENERGY: Posts $758K Net Loss in Second Quarter
CLEARY PACKAGING: Cantwell-Cleary Files Competing Plan
CMG MEDIA: Lord Abbett CB Marks $10MM Loan at 16% Off
CONDOR INVERSIONES: Gets Stay Order in Chapter 11 Case
CONNECTWISE: Fitch Affirms 'B+' LongTerm IDR, Outlook Stable
CSR WORLDWIDE: Court OKs Cash Collateral Access on Final Basis
DIAMONDHEAD CASINO: Incurs $367K Net Loss in Second Quarter
DOLPHIN ENTERTAINMENT: Incurs $8 Million Net Loss in Second Quarter
EMPOWER CLINICS: BCSC Issues Cease Trade Order
FEDNAT HOLDING: Hearing on Approval Motion Continued to Aug.29
FRANKLIN ENERGY: Guggenheim SOF Marks $1.5MM Loan at 15% Off
GABHALTAIS TEAGHLAIGH: US Trustee Says Plan Not Confirmable
GERMANIA FARM: A.M. Best Cuts Financial Strength Rating to B(Fair)
GLOBAL ALLIANCE: Court Confirms Second Amended Plan
GOLDEN HARBOR: Seeks to Tap Law Office of Arnulfo Guerra as Counsel
GOLDEN Z LLC: Plan Requires Sale by January 2024
GREEN DISTRICT: Files Emergency Bid to Use Cash Collateral
GSS18 LLC: U.S. Trustee Unable to Appoint Committee
H2O INVESTMENT: Unsecured to Get Payment After Property Sold
HANESBRANDS INC: S&P Downgrades ICR to 'B+', Outlook Negative
HANJIN INTERNATIONAL: S&P Upgrades ICR to 'B', Outlook Stable
HDRMP LLC: Gets OK to Hire Harrison Law as Special Counsel
HEART O'GOLD: Taps Phillips as Accountant and Financial Advisor
JONATHAN RON: Seeks to Hire Levine & Associates as Accountant
KEMPER CORP: Fitch Lowers Jr. Subordinated Debt Rating to BB
KRONOS WORLDWIDE: S&P Downgrades ICR to 'CCC+', Outlook Negative
LENDMARK: Fitch Affirms 'B' LongTerm IDR & Alters Outlook to Neg.
LINDEN AUTO: Case Summary & Six Unsecured Creditors
LIVIE & LUCA: Files Emergency Bid to Use Cash Collateral
LORDSTOWN MOTORS: Committee Seeks to Tap Huron as Financial Advisor
LORDSTOWN MOTORS: Committee Seeks to Tap Troutman as Legal Counsel
MALINKI SLONIK: Unsecureds to Get 100% in Plan
MARCH ON HOSPITALITY: Seeks to Hire Nossaman as Substitute Counsel
MBE GROUP: Seeks Cash Collateral Access
MERCY HOSPITAL: Court OKs Appointment of Susan Goodman as PCO
MERCY HOSPITAL: Gets OK to Hire Epiq as Claims and Noticing Agent
MERIDIAN HOLDING: Unsecureds Owed $83K to Be Paid in Full
MIKE JOHNSON: Taps Edward Burr as Chief Restructuring Officer
MIKE JOHNSON: Taps West to East Business Solutions as Accountant
NATIONAL MENTOR: Guggenheim SOF Marks $150,000 Loan at 26% Off
NEW JERSEY VISION: Ombudsman Gets OK to Hire Formanlaw as Counsel
NEW MEDICAL: Case Summary & Four Unsecured Creditors
NIC ACQUISITION: Guggenheim SOF Marks $1.04MM Loan at 23% Off
NICE VIEW 82: Unsecured Creditors to Get 100% Under Plan
OAKWOOD DREAMS: Class 3 Unsecureds Owed $145K to be Paid in Full
ONH AFC CS: Seeks to Hire B. Riley as Restructuring Advisor
ONH AFC CS: Seeks to Hire Baker & Hostetler as Bankruptcy Counsel
ONH AFC CS: Seeks to Hire Landis Rath & Cobb as Bankruptcy Counsel
PARAMETRIC SOLUTIONS: Court OKs Interim Cash Collateral Access
PASSERO LLC: Gets OK to Hire Joel A. Schechter as Legal Counsel
PECF USS INTERMEDIATE: Guggenheim SOF Marks $3.9MM Loan at 22% Off
PLOURDE SAND: May Use $472,464 of Cash Collateral
POPULUXE LLC: Court OKs Cash Collateral Access on Final Basis
PRIME CORE: Aug. 23 Deadline Set for Panel Questionnaires
PRIME TRUST: Files Voluntary Chapter 11 Bankruptcy Petition
PURE FISHING: S&P Cuts ICR to 'SD' Distressed Debt Restructurings
RELIABLE CASTINGS: Seeks to Hire Forevisor as Business Advisor
S&G HOSPITALITY: Seeks Cash Collateral Access
SARVER REALTY: Seeks to Hire Calaiaro Valencik as Legal Counsel
SCRIBEAMERICA LLC: Guggenheim SOF Marks $2.4MM Loan at 44% Off
SHO HOLDING I: Guggenheim SOF Marks $424,000 Loan at 28% Off
SHREE RADHA KRISHNA: Case Summary & Two Unsecured Creditors
SIGNET JEWELERS: Fitch Affirms BB LongTerm IDR, Outlook Stable
SIMPLETECH REPAIR: Seeks to Hire Maxsen Champion as Legal Counsel
SPECIALTY DENTAL: Court Directs U.S. Trustee to Appoint PCO
SUSTAITA ENTERPRISES: Case Summary & 20 Top Unsecured Creditors
T-ROLL CONSTRUCTION: Seeks Sept. 4 Extension to File Plan
TGP HOLDINGS: Guggenheim SOF Marks $376,922 Loan at 18% Off
TKEES INC: Seeks to Hire Prager Metis CPAs as Accountant
TRANSCENDIA HOLDINGS: Guggenheim SOF Marks $1.7MM Loan at 26% Off
TRANSIT PHYSICAL: No Patient Care Concern, 1st PCO Report Says
UNDER THE HOOD: Files Emergency Bid to Use Cash Collateral
VALCOUR LLC: Guggenheim SOF Marks $650,000 Loan at 15% Off
VECTOR UTILITIES: Court OKs Cash Collateral Access Thru Aug 31
VIEWRAY INC: Seeks to Tap Cravath Swaine & Moore as Special Counsel
VITAL PHARMA: Taps Gregg Metzger as 'Ordinary Course' Professional
VPR BRANDS: Posts $928K Net Income in Second Quarter
WHAIRHOUSE LIMITED: Involuntary Chapter 11 Case Summary
WINCHESTER REAL: Gets OK to Hire Harrison Law as Special Counsel
XPLORNET COMMS: Guggenheim SOF Marks $4.5MM Loan at 21% Off
YACHTBRASIL MOTOR: U.S. Trustee Unable to Appoint Committee
YC RIVERGOLD: Ordered to File Plan Not Later Than Sept. 29
YELLOW CORP: Gets OK to Hire Epiq as Claims and Noticing Agent
ZEP INC: Guggenheim SOF Marks $923,618 Loan at 16% Off
[*] Bailey Brauer Attorneys Named Best Lawyers in America
[*] Bissinger Oshman Attorneys Named Best Layers in America
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*********
246-18 REALTY: Court OKs Cash Collateral Access Thru Sept 8
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
authorized 246-18 Realty LLC and affiliates to use cash collateral
on an interim basis in accordance with the budget, with a 10%
variance, through September 8, 2023.
244 246 W 18 SME LLC asserts an interest in the Debtor's cash
collateral.
On October 30, 2020, the Debtor and Emerald Creek Capital 3, LLC,
as Administrative Agent executed and entered into a Loan Agreement,
Amended, Restated, and Consolidated Note, Mortgage, and Assignment
of Leases and Rents and related documents. As of the Petition Date,
the Debtor believes that the total amount owed to SME LLC not less
than $8 million.
SME asserts that it holds a duly perfected security interest in and
lien upon the Debtor's real property and rents generated arising
therefrom.
As adequate protection for and to the extent of any decrease in the
value of SME's collateral arising from the Debtor's use of cash
collateral, SME is granted a valid, perfected, and enforceable,
post-petition replacement lien on and security interest in all of
the Debtor's assets constituting SME's Pre-Petition Collateral and
the proceeds thereof; provided, however, the SME Replacement Lien
will not extend to the estate's avoidance claims, or to any
property of the Debtor as to which SME's security interest and lien
were not perfected as of the Petition Date and will have the same
priority they had as of the Petition Date. The SME Replacement Lien
will be subject to all other validly and properly perfected
pre-petition liens and security interests in favor of third parties
that were senior to and had priority over SME's security interest
and lien as of the Petition Date.
The Replacement Lien(s) granted are deemed perfected, without the
necessity of filing any documents or otherwise complying with
non-bankruptcy law in order to perfect security interests and
record liens, with such perfection being binding upon all parties.
To the extent that the Replacement Liens and other relief granted
do not provide SME with adequate protection of their respective
interests in the cash collateral, SME is granted super-priority
administrative expense claims in the order of their respective
priority under Section 507(b) Bankruptcy Code.
The Replacement Liens and the Super-Priority Claims will be
subordinate only to the fees and expenses of the Clerk of the
Bankruptcy Court and the fees of the Office of the U.S. Trustee
pursuant to 28 U.S.C. 1930(a) plus applicable interest on any such
fees.
These events constitute a "Termination Event":
a. Entry of any order dismissing the within case or converting
the within case to Chapter 7 of the Bankruptcy Code;
b. Entry of an order authorizing the appointment of a Chapter
11 trustee, or examiner with expanded powers in the Chapter 11
case;
c. Failure of the Debtor to cure any other default under this
Order, after five days written notice to the Debtor's counsel, the
Office of the United States Trustee and the top twenty unsecured
creditors or the Official Committee of Unsecured Creditors, if
appointed; and/or
d. September 8, 2023, unless further extended by consent of
SME or by order of the Court.
A copy of the court's order and the Debtor's budget is available at
https://urlcurt.com/u?l=pwStjL from PacerMonitor.com.
The Debtor projects $19,930 in total expenses for 30 days.
About 246-18 Realty LLC
246-18 Realty LLC owns real property located at 244-246 West 18th
Street, New York, New York. The Property is comprised of two real
estate parcels. The first parcel, located at 244 West 18th Street,
is a building comprised of single residential occupancy units and
is currently vacant. The second parcel is located at 246 West 18th
Street, New York, New York and is a multi-family residential
apartment building comprising of 14 residential apartments units.
Currently 13 of these units are rented.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 23-10796) on May 19,
2023. In the petition signed by Joseph Nabavi, authorized signatory
for 244,246 Holdco LLC, managing member, the Debtor disclosed up to
$50 million in both assets and liabilities.
Judge Philip Bentley oversees the case.
Clifford A. Katz, Esq., at Platzer, Swergold, Goldberg, Katz and
Jaslow, LLP, represents the Debtor as legal counsel.
2CM LLC: Files Emergency Bid to Use Cash Collateral
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2CM, LLC asks the U.S. Bankruptcy Court for the Middle District of
Florida, Jacksonville Division, for authority to use cash
collateral in accordance with the budget, with a 10% variance.
The Debtor has financed its operations on a cash basis and via
business credit cards.
The Debtor has three pre-petition merchant cash advances/lenders,
Expansion Capital Group, Fox Capital Group, Inc., and Rapid Finance
that have a lien on the Debtor's cash and receivables, and one
lender, PNC Bank, with a right to set off on the Debtor's
pre-petition operating Account . The Debtor relies on current
revenues to fund its operations. The Debtor has filed the case to
restructure its debt and pursue a SubChapter V, Chapter 11
reorganization plan.
The Debtor primarily generates income from its two restaurant
sales. At the time of filing, the Debtor had a total balance of
approximately $7,000 in its two Operating Accounts the business
generates approximate gross receipts of $45,000 per month.
Adequate protection provided to Cash Collateral Lenders includes a
replacement lien on the Debtor’s receivables and the Debtor's
projected positive cash flow.
A copy of the Debtor's motion and budget is available at
https://urlcurt.com/u?l=Ezp52j from PacerMonitor.com.
The Debtor projects $60,000 in revenue and $56,511 in total
expenses for the period from August 21 to September 21, 2023.
About 2CM, LLC
2CM, LLC is a Florida corporation based in Jacksonville, Florida.
It sells pet supplies both online and at its brick-and-mortar
store.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 23-01569) on July 5,
2023. In the petition signed by Howland Russell, the owner, the
Debtor disclosed up to $500,000 in both assets and liabilities.
Judge Jason A. Burgess oversees the case.
Thomas Adam, Esq., represents the Debtor as legal counsel.
5200 SAMPLE: Court OKs Interim Cash Collateral Access
-----------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Florida,
West Palm Beach Division, authorized 5200 Sample Road, LLC to use
cash collateral on an interim basis in accordance with the budget,
with a 10% variance.
The Debtor requires the use of cash collateral to pay its regular
business operating expenses and administrative expenses and other
ordinary expenses as they become due.
The Debtor is a party to a UCC-1 with ODK Capital, LLC in which ODK
may purport to have a security interest in the secured assets
including any and all assets of the Debtor whether now owned or
hereafter acquired or arising. In support of the agreement and as
perfection of the purported lien thereunder, the Court finds that a
UCC-1 Financing Statement was filed on July 9, 2022, in which ODK
claims a security interest in the collateral.
The Debtor is a party to a UCC-1 with IOU Funding, LLC in which IOU
may purport to have a security interest in the secured assets
including any and all assets of the debtor whether now owned or
hereafter acquired or arising.
The Debtor is a party to a UCC-1 with Fundamental Capital, LLC in
which Fundamental may purport to have a security interest in
accounts and accounts receivable of the Debtor. In support of the
agreement and as perfection of the purported lien thereunder, the
Court finds that a UCC-1 Financing Statement was filed on October
26, 2022, in which Fundamental claims a security interest in the
collateral.
The Debtor is a party to a UCC-1 with the U.S. Small Business
Administration in which the SBA may purport to have a security
interest secured assets including accounts, receivables, and
deposit accounts of Debtor. In support of the foregoing agreement
and as perfection of the purported lien thereunder, the Court finds
that a UCC-1 Financing Statement was filed on August 20, 2020, in
which the SBA claims a security interest in the collateral.
During the pendency of the bankruptcy and until further Court
Order, all pre-petition and post-petition income will be turned
over and paid to the Debtor for deposit into the Debtor in
Possession bank accounts.
As adequate protection for and to the extent of the Debtor's use of
"cash collateral" pursuant to the Order, ODK, IOU, Fundamental and
SBA, are granted, as of the Petition Date, a replacement lien to
the same extent as any pre-petition lien, pursuant to 11 U.S.C.
section 361(2) on the property set forth in its security
agreements, on an interim basis, without any prejudice to any
rights of the Debtor to seek to void the lien as to the extent,
validity, or priority of said liens.
The post-petition liens granted in connection with the use of cash
collateral will at all times be subject and junior to the fees of
the Office of the United States Trustee pursuant to 28 U.S.C.
section 1930, Court costs and any administrative fees and costs
awarded by the Court in the proceeding.
A further interim hearing on the matter is set for August 29, 2023
at 2:30 p.m.
A copy of the court's order and the Debtor's budget is available at
https://urlcurt.com/u?l=4h8BzQ from PacerMonitor.com.
The Debtor projects $179,580 in total revenues and $47,135 in total
expenses for August 2023.
About 5200 Sample Road, LLC
5200 Sample Road, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Cal. Case No. 23-13723) on May
12, 2023.
In the petition signed by Mark Alsentzer, manager, the Debtor
disclosed up to $100,000 in assets and up to $50,000 in
liabilities.
Judge Mindy A. Mora oversees the case.
Craig I. Kelley, Esq., at Kelley, Fulton & Kaplan, P.L., represents
the Debtor as legal counsel.
5280 AURARIA: Court Approves Disclosure Statement
-------------------------------------------------
Judge Kimberley H. Tyson has entered an order approving the
Disclosure Statement explaining the Chapter 11 Plan of 5280
Auraria, LLC.
Ballots accepting or rejecting the Plan must be submitted by the
holders of all claims or interests on or before 5:00 p.m. on Sept.
12, 2023, to the Debtor's counsel, Michael J. Pankow, at Brownstein
Hyatt Farber Schreck, LLP, 675 15th Street, Suite 2900, Denver, CO
80202.
On or before Sept. 12, 2023, any objection to confirmation of the
Plan must be filed with the Court and a copy served on the Debtor's
counsel.
If the Debtor proposes to further amend or modify the Plan in
response to any objection, at least 3 business days prior to the
confirmation hearing the the Debtor must file with the Court and
serve on all objecting parties a response which specifically
identifies any amendments(s) made in response to an objection.
A bar date of Sept. 30, 2022, has previously been set for filing
proofs of claims.
About 5280 Auraria
5280 Auraria, LLC, owns Auraria Student Lofts, a high-rise building
in downtown Denver aimed at providing housing for college students.
5280 Auraria's sole member and manager is Nelson Partners, LLC, a
Utah limited liability company. The individual principal is Patrick
Nelson.
5280 Auraria sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Colo. Case No. 22-12059) on June 9,
2022. In the petition filed by Patrick Nelson, as managing member,
the Debtor listed between $50 million and $100 million in both
assets and liabilities.
Judge Kimberley H. Tyson oversees the case.
Michael J. Pankow, Esq., at Brownstein Hyatt Farber Schreck, LLP,
is the Debtor's counsel.
560 SEVENTH AVENUE: Court OKs Cash Collateral Access Thru Sept 5
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The U.S. Bankruptcy Court for the Southern District of New York
authorized 560 Seventh Avenue Owner Primary LLC to use cash
collateral on an interim basis in accordance with the budget, with
a 5% variance, through the date that is the earliest to occur of,
(a) a Cash Collateral Termination Event, and (b) September 5,
2023.
These events that constitute a "Cash Collateral Termination"
event:
(i) the failure of the Debtor to make any payment under the Interim
Order to the Prepetition Senior Mortgage Lender within two business
days after such payment becomes due;
(ii)(A) the Interim 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 this
Court or any other court of an order vacating or modifying this
Interim Order or any final Order authorizing the use of cash
collateral in the case;
(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;
(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;
(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;
(vi) the failure of the Debtor to comply with any of the material
terms, provisions, conditions, covenants, or obligations under the
Interim Order;
(vii) the cash collateral is used other than for the purposes set
forth in the Interim Order and/or in accordance with the Approved
Budget (subject to any Variance);
(viii) any failure by the Debtor to obtain approval on any Variance
as required be paragraph 4 of the Interim Order;
(ix) any failure by the Debtor to provide reporting and
substantiation of funds flow as required by the Interim Order;
(x) any failure by the Debtor to pay any invoices issued by the
Prepetition Senior Mortgage Lender as and when due;
(xi) unless otherwise agreed to in writing by the Prepetition
Senior Mortgage Lender in its sole discretion, the Debtor seeks
entry of an order authorizing the Debtor to obtain postpetition
secured financing secured by any liens priming or senior to those
of the Prepetition Senior Mortgage Lender pursuant to 11 U.S.C.
Section 364(d)(1);
(xii) the dismissal of the Debtor's bankruptcy case or the
conversion of the case to a case under chapter 7 of the Bankruptcy
Code;
(xiii) any failure by the Debtor to deliver any of the required
Approved Budget Reports; and/or
(xiv) the appointment of a trustee, receiver or examiner or other
representative with expanded powers for the Debtor.
The assets of the Margaritaville Resort Times Square Hotel are
subject to a first mortgage lien held by OWS CRE Funding I, LLC,
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.
To secure the Diminution Claim, the Prepetition Senior Mortgage
Lender, is, solely to the extent of the Diminution Claim, granted
valid, perfected, postpetition security interests and liens in and
on (a) all of the Prepetition Collateral, (b) the DIP Account, and
(c) the Existing Accounts, provided, however, the Replacement Liens
(x) will only be and remain subject and subordinate to the
Carve-Out; and (y) will not apply to any claims or causes of action
arising under Sections 544, 545, 547, 548, 49, an 550 of the
Bankruptcy Code or any other similar state or federal law or the
proceeds thereof.
As further adequate protection for and solely to the extent of the
Diminution Claim, the Prepetition Senior Mortgage Lender is granted
(effective upon the date of this Interim Order) a superpriority
claim with priority over all administrative expense claims and
unsecured claims against the Debtor or its estate, now existing or
hereafter arising, of any kind or nature whatsoever.
A final hearing on the matter is set for September 5 at 2:30 p.m.
A copy of the order is available at https://urlcurt.com/u?l=rIGRyB
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.
Judge Philip Bentley oversees the case.
Kevin J. Nash, Esq., at GOLDBERG WEPRIN FINKEL GOLDSTEIN LLP,
represents the Debtor as legal counsel.
80 WEST WASHINGTON: Case Summary & Six Unsecured Creditors
----------------------------------------------------------
Debtor: 80 West Washington Place Real Estate Holdings, LLC
80 West Washington Place
New York, NY 10011
Business Description: The Debtor is the owner of real estate
located at 80 West Washington Place, New
York, NY 10011 valued at $25 million.
Chapter 11 Petition Date: August 22, 2023
Court: United States Bankruptcy Court
Southern District of New York
Case No.: 23-11347
Debtor's Counsel: H Bruce Bronson, Esq.
BRONSON LAW OFFICES PC
480 Mamaroneck Ave
Harrison, NY 10528-1621
Tel: (914) 269-2530
Fax: (888) 908-6906
Email: hbbronson@bronsonlaw.net
Total Assets: $25,100,150
Total Liabilities: $25,312,497
The petition was signed by William Rainero sa managing member.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/RNPLUYY/80_West_Washington_Place_Real__nysbke-23-11347__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's Six Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Con Edison Utilities $80,000
4 Irving Pl
New York, NY
10003-3502
2. Internal Revenue Service $0
PO Box 7346
Philadelphia, PA
19101-7346
3. James D. Burchetta, Esq. Legal Services $60,000
2 Homestead Lane,
#412
Greenwich, CT 06831
4. NYC Tax Commission $0
5030 Broadway, Unit
603, FL 6
New York, NY 10034
5. UE Architecture $3,500
315 W. 39th Street
New York, NY 10018
6. William J Camera Accounting $5,000
Camera & Ford CPAs Services
555 Broadhollow
Road, Ste 330
Melville, NY
1147-5001
ACPRODUCTS INC: Lord Abbett CB Marks $19.4MM Loan at 18% Off
------------------------------------------------------------
Lord Abbett Corporate Bond Fund has marked its $19,428,656 loan
extended to ACProducts, Inc to market at $15,888,366 or 82% of the
outstanding amount, as of May 31, 2023, according to Lord Abbett
CB'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 CB is a participant in a 2021 Term Loan B to
ACProducts, Inc. The loan accrues interest at a rate of 9.41% (3
mo. USD LIBOR + 4.25%) per annum. The loan matures on May 17,
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
fourteen funds as of May 31, 2023. This report covers the following
twelve 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.
ACProducts, Inc., headquartered in The Colony, Texas, is a national
manufacturer and distributor of kitchen and bathroom cabinetry.
American Industrial Partners, through its affiliates, is the
primary owner of ACProducts, having acquired it in 2012.
ADVANCED INFRASTRUCTURE: Wins Cash Collateral Access on Final Basis
-------------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Maine authorized
Advanced Infrastructure Technologies, LLC and affiliates to use
cash collateral on a final basis in accordance with the budget.
The Debtor requires the use of cash collateral to provide for,
among other things, the orderly continuation of their businesses,
to maintain business relationships, and to pay payroll.
As adequate protection, Commercial Metals Company is granted
replacement liens against all assets of the Debtors, subject to any
existing liens on such assets, and including all rents, issues,
products, proceeds (including insurance policies), and profits
thereof, without the necessity of the execution by the Debtors (or
recordation or other filing) of security agreements, control
agreements, pledge agreements, notation on motor vehicle titles,
financing statements, mortgages, or other similar documents.
These events constitute an "Event of Default":
(a) the Final Order is reversed, vacated, stayed, amended,
supplemented or otherwise modified in a manner which will
materially and adversely affect the rights of CMC;
(b) the Chapter 11 cases of the Debtors are either dismissed or
converted to Chapter 7 cases pursuant to a final order of the
Court, the effect of which has not been stayed; or
(c) a Chapter 11 trustee (other than the subchapter V trustee), or
an examiner with expanded powers beyond those set forth in 11
U.S.C. Sections 1106(a)(3) and 1106(a)(4), is appointed by a final
order of this Court, the effect of which has not been stayed, in
the Chapter 11 cases of the Debtors.
A further hearing on the matter is set for September 27, 2023 at 9
a.m.
A copy of the order is available at https://urlcurt.com/u?l=rTdSpR
from PacerMonitor.com.
About Advanced Infrastructure Technologies, LLC
Advanced Infrastructure Technologies, LLC is a provider of
composite solutions for the infrastructure & construction industry.
AIT designs and manufactures composite bridge systems designed with
AASHTO LRFD bridge design specifications. AIT manufactures a
variety of composite products for the infrastructure and
construction industry including, AIT Wall and GPole.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Maine Lead Case No. 23-10128) on July 7,
2023. In the petition signed by Brit E. Svoboda, its chief
executive officer, AIT disclosed $8.112 million in total assets and
$18.865 in total liabilities.
Judge Peter G. Cary oversees the case.
Adam Prescott, Esq., at Bernstein Shur Sawyer and Nelson, P.A.
AGSPRING LLC: Court OKs Deal on Cash Collateral Access
------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware authorized
Agspring LLC to use cash collateral on a final basis in accordance
with its agreement with LVS II SPE XVIII LLC and HVS V LLC and U.S.
Bank National Association, as Administrative Agent for the
Lenders.
As previously reported by the Troubled Company Reporter, prior to
the Petition Date, Agspring, LLC entered into a Term Credit
Agreement with the Lenders and U.S. Bank National Association as
Administrative Agent. Agspring Mississippi Region, Bayou Grain &
Chemical Corporation, FO-ND LLC, Agspring Logistics LLC, and
Agspring Idaho 1 LLC guaranteed the repayment of the Term Loan and
pledged their assets as security. Agspring and the Lenders entered
into various agreements to extend the forbearance period. The
outstanding indebtedness under the Credit Agreement as of the
Petition Date is $76, 416, 194.56, as asserted by the Agent.
Agspring and the Lenders entered into a Forbearance and Consent to
Replacement of Shared Services Agreement on June 8, 2021, the First
Amendment to Forbearance and Consent to AMR Facilities on September
9, 2021, and the Forbearance and Consent to Sales on December 3,
which together extended the initial forbearance period.
As of the Petition Date, the indebtedness outstanding under the
Credit Agreement is not less than $76.416 million as asserted by
the Agent.
The Debtors require the use of cash collateral to fund postpetition
expenses.
The Debtors have agreed to limit the use of cash collateral in
accordance with the Budget. In addition, under the Stipulation to
be approved by an order of the Court, the Agent, for the benefit of
itself and the Lenders, was granted replacement liens and security
interests on all assets of the Debtors and their estates, whether
now existing or hereafter acquired, and the proceeds, income and
profits and offspring of any of the foregoing, to secure the
Debtors' use of cash collateral, whether pursuant to the
Stipulation or otherwise, and to secure any diminution of value in
the Collateral from and after the Petition Date. The Replacement
Liens (i) are subordinate only to the Carve-Out and any prior
existing and validly perfected liens and security interests in the
Debtors' assets, (ii) will attach with the same rights and in the
same order of priority that existed as to the Collateral under
applicable non-bankruptcy law (including by agreement of the Agent)
as of the Petition Date, (iii) are automatically perfected without
any further action by the Agent, and (iv) exclude any and claims or
causes of action arising under Chapter 5 of the Bankruptcy Code or
applicable state fraudulent-transfer law and any proceeds thereof.
As further adequate protection in addition to the liens and
security interests granted to the Agent, and in the event that the
value of the postpetition replacement collateral proves
insufficient to enable the Agent to collect the aggregate amount of
the cash collateral used by the Debtors pursuant to the Stipulation
and Order or otherwise, or in the event the value of the Collateral
diminishes during this proceeding, the Agent and the Lenders will
each be granted an allowed superpriority claim against each of the
Debtors as provided in 11 U.S.C. Section 507(b) of the Bankruptcy
Code, with priority in payment over any and all unsecured claims
and administrative expense claims against the Debtors, except as
such provision relates to Avoidance Actions and subject in all
events to payment of the Carve-Out.
The Replacement Liens will be automatically perfected postpetition
security interests and liens without the necessity of the execution
by the Agent or the Lenders (or recordation or other filing) of
security agreements, control agreements, pledge agreements,
financing statements, mortgages, or other similar documents.
A copy of the order is available at https://urlcurt.com/u?l=GQ2YTG
from PacerMonitor.com.
About Agspring LLC
Agspring, LLC is a provider of warehousing and storage services in
Leawood, Kansas.
Agspring and five of its affiliates filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead
Case No. 23-10699) on May 31, 2023. At the time of the filing,
Agspring reported $1 million to $10 million in assets and $50
million to $100 million in liabilities.
Judge Craig T. Goldblatt oversees the cases.
The Debtor tapped Pachulski Stang Ziehl & Jones, LLP and Dentons
US, LLP as legal counsels, and Kyle Sturgeon of MERU, LLC as chief
restructuring officer.
API HOLDINGS: Guggenheim SOF Marks $1.5MM Loan at 32% Off
---------------------------------------------------------
Guggenheim Strategic Opportunities Fund has marked its $1,540,000
loan extended to API Holdings III Corp to market at $1,052,328 or
68% of the outstanding amount, as of May 31, 2023, according to
Guggenheim SOF'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.
Guggenheim SOF is a participant in a Bank Loan to API Holdings III
Corp. The loan accrues interest at a rate of 9.41% (3 Month USD
LIBOR + 4.25%, Rate Floor: 4.25%) per annum. The loan matures on
May 9, 2026.
Guggenheim Strategic Opportunities Fund was organized as a Delaware
statutory trust on November 13, 2006. The Fund is registered as a
diversified, closed-end management investment company under the
Investment Company Act of 1940, as amended.
API Holdings III Corp., headquartered in Marlborough, Mass., is a
holding company whose main operating subsidiary is API Technologies
Corp. The company is a tier three or tier four supplier of radio
frequency (RF) and performance components and subsystems for the US
aerospace and defense industry. API is majority owned by affiliates
of AEA Investors.
ARIAN MOWLAVI: PCO Submits Sixth Interim Report
-----------------------------------------------
Tamar Terzian, the court-appointed patient care ombudsman, filed
with the U.S. Bankruptcy Court for the Central District of
California a sixth interim report regarding the quality of patient
care provided at Dr. Arian Mowlavi's surgical center.
The report, which covers the period from June 1 to Aug. 1, 2023,
was filed following the PCO's visit to the site. Based on
discussions with Dr. Mowlavi's staff and counsel, Dr. Mowlavi
continues to consult patients in the Laguna location for
pre-operation and post-operation care. Since the revocation of the
Laguna Surgery Institute, LLC accreditation, no surgeries are
performed in this location besides local cases. Based on on-site
inspection, there are no controlled substances in this location.
During this interim reporting period, the PCO conducted an
inspection and met with the physician in the L.A. Surgery Center.
The PCO observed and toured the pre-op care, surgical room and
post-op care of the L.A. Surgical Center. At the surgical center,
the PCO was informed that before each operation, the physician
reviews and conducts an assessment of the scope of the surgery and
plan of surgery.
The PCO noted that medical records are stored on-site and are
properly stored. The medical records are stored in paper files. The
PCO conducted a sampling of the files. Among other standard
documentation, the PCO found that the patients executed consent
forms to the medical treatments and surgical procedures provided in
the charts.
The PCO recommended that Dr. Mowlavi regularly reports to her all
events affecting patient care and that Dr. Mowlavi continues to
work with the physician in the L.A. Surgical Center and continues
to report to the Medical Board.
A copy of the sixth interim report is available for free at
https://urlcurt.com/u?l=oRqjq4 from PacerMonitor.com.
The ombudsman may be reached at:
Tamar Terzian, Esq.
Epps & Coulson, LLP
1230 Crenshaw Blvd.
Torrance, CA 90501
Telephone: (818) 242-1100
Facsimile: (818) 242-1012
Email: tterzian@eppscoulson.com
About Arian Mowlavi
Dr. Arian Mowlavi is a medical doctor specializing in
reconstructive and cosmetic surgery. He conducts business through
his wholly owned medical corporation known as A.M. Cosmetic Surgery
Clinics, Inc., a California Corporation.
Dr. Mowlavi filed a voluntary petition for Chapter 11 protection
(Bankr. C.D. Calif. Case No. 22-10296) on Feb. 21, 2022, with $1
million to $10 million in assets and $10 million to $50 million in
liabilities. Judge Scott C. Clarkson oversees the case.
The Debtor is represented by J. Scott Williams, Esq., a practicing
attorney in Irvine, Calif.
Tamar Terzian is the patient care ombudsman appointed in the
Debtor's Chapter 11 case.
ASTON FINCO: Guggenheim SOF Marks $1.6MM Loan at 17% Off
--------------------------------------------------------
Guggenheim Strategic Opportunities Fund has marked its $1,644,750
loan extended to Aston FinCo S.a r.l. to market at $1,373,366 or
83% of the outstanding amount, as of May 31, 2023, according to
Guggenheim SOF'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.
Guggenheim SOF is a participant in a Bank Loan to Aston FinCo SARL.
The loan accrues interest at a rate of 9.40% (1 Month USD LIBOR +
4.25%, Rate Floor: 4.25%) per annum. The loan matures on October 9,
2026.
Guggenheim Strategic Opportunities Fund was organized as a Delaware
statutory trust on November 13, 2006. Guggenheim SOF is registered
as a diversified, closed-end management investment company under
the Investment Company Act of 1940, as amended.
Aston FinCo S.a r.l. is an affiliate of Advanced Computer Software
Group Limited. Advanced Computer Software, a portfolio company of
BC Partners, is a provider of business software and services.
Aston FinCo's country of domicile is Luxembourg.
ATRIX TRUCKING: Wins Interim Cash Collateral Access
---------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida
authorized Atrix Trucking Corp. to use the cash collateral of
Synovus Bank, the U.S. Small Business Administration, and Energy
122 Trust, on an interim basis in accordance with the budget,
retroactive to April 25, 2023.
The Debtor is permitted to use cash collateral to pay: (a) the
amounts expressly authorized by the Court, including monthly
payments to the Subchapter V trustee; (b) the current and necessary
expenses set forth in the budget, plus an amount not to exceed 10%
for each line item; and (c) the additional amounts as may be
expressly approved in writing by the Secured Creditors.
The Secured Creditors will have perfected post-petition liens
against cash collateral to the same extent and with the same
validity and priority as their pre-petition liens, 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 Debtor's cash collateral use is set for
October 5, 2023, at 10:30 a.m.
A copy of the Court's order and the Debtor's budget is available at
https://urlcurt.com/u?l=vq4m9e from PacerMonitor.com.
The Debtor projects $556,665 in gross profit and $1.5 million in
total expenses, for one year.
About Atrix Trucking Corp.
Atrix Trucking Corp., a company in Maitland, Fla., filed its
voluntary petition for Chapter 11 protection (Bankr. M.D. Fla. Case
No. 23-01540) on April 25, 2023, with $500,000 to $1 million in
assets and $1 million to $10 million in liabilities. Charles E.
Joseph, president of Atrix Trucking, signed the petition.
Judge Grace E. Robson oversees the case.
Buddy D. Ford, P.A. serves as the Debtor's legal counsel.
AVISON YOUNG: Guggenheim SOF Marks $2.3MM Loan at 29% Off
---------------------------------------------------------
Guggenheim Strategic Opportunities Fund has marked its $2,311,659
loan extended to Avison Young (Canada), Inc to market at $1,632,031
or 71% of the outstanding amount, as of May 31, 2023, according to
Guggenheim SOF'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
Guggenheim SOF is a participant in a Bank Loan to Avison Young
(Canada), Inc. The loan accrues interest at a rate of 11.02% (1
Month Term SOFR + 5.75%, Rate Floor: 5.75%) per annum. The loan
matures on January 31, 2026.
Guggenheim Strategic Opportunities Fund was organized as a Delaware
statutory trust on November 13, 2006. Guggenheim SOF is registered
as a diversified, closed-end management investment company under
the Investment Company Act of 1940, as amended.
Avison Young (Canada) Inc. provides real estate services. The
Company offers consulting, advisory, lease administration,
investment and asset management, and mortgage services. Avison
Young (Canada) serves customers worldwide.
BELA FLOR: Voluntary Chapter 11 Case Summary
--------------------------------------------
Debtor: Bela Flor Nurseries, Inc.
7543 State Highway 42
Henderson, TX 75652
Business Description: Bela Flor operates in the horticulture
and retail gardening industry. The Company
currently grows from seed and cutting annual
flowers, vegetables, bulbs, and floral items
for wholesalers, landscapers and retailers.
Chapter 11 Petition Date: August 22, 2023
Court: United States Bankruptcy Court
Northern District of Texas
Case No.: 23-42469
Judge: Hon. Mark X. Mullin
Debtor's Counsel: Buffey E. Klein, Esq.
HUSCH BLACKWELL LLP
1900 N. Pearl Street, Suite 1800
Dallas, TX 75201
Tel: 214-999-6152
Email: buffey.klein@huschblackwell.com
Debtor's CRO: B. RILEY ADVISORY SERVICES
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Mark Shapiro as chief restructuring
officer.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/VA7SHXI/Bela_Flor_Nurseries_Inc__txnbke-23-42469__0001.0.pdf?mcid=tGE4TAMA
BH 7904 11 FLR: Sept. 27 Hearing on Disclosure Statement
--------------------------------------------------------
Judge Laurel M. Isicoff has entered an order conditionally
approving the Disclosure Statement of BH 7904 11 FLR, LLC.
The Court will conduct the confirmation hearing and consider final
approval of the Disclosure Statement and any timely-filed fee
applications will be held on Wednesday, September 27, 2023 at 10:30
a.m. in C. Clyde Atkins U.S. Courthouse, 300 N. Miami Avenue,
Courtroom 8, Miami, Florida 33128.
The following deadlines apply with respect to the confirmation
hearing and hearing on fee applications:
* Monday, Aug. 28, 2023, is the deadline for Serving this Order,
disclosure statement, plan, and ballots (30 days before the
confirmation hearing).
* Wednesday, Sept. 13, 2023, is the deadline for objections to
claims (14 days before confirmation hearing).
* Friday, Sept. 1, 2023, is the Deadline for Filing and Serving
Fee Applications (24 days before confirmation hearing).
* Wednesday, Sept. 6, 2023, is the deadline for filing and
serving notice summarizing all fee applications (21 days before the
confirmation hearing).
* Wednesday, Sept. 20, 2023, is the deadline for filing ballots
accepting or rejecting the Plan (7 days before confirmation
hearing, per Local Rule 3018-1).
* Wednesday, Sept. 20, 2023, is the Deadline to File Motions
Under Fed. R. Civ. P. 43(a) (7 business days before confirmation
hearing).
* Friday, Sept. 22, 2023, is the Deadline for Objections to
Confirmation (3 business days before confirmation hearing).
* Friday, Sept. 22, 2023, is the Deadline for Objections to
Final Approval of the disclosure statement (3 business days before
confirmation hearing).
* Friday, Sept. 22, 2023, is the Deadline for Filing Proponent's
Report and Confirmation Affidavit (3 business days before
confirmation hearing).
* Friday, Sept. 22, 2023, is the Deadline for Filing Local Form
71 "Individual Debtor Certificate for Confirmation Regarding
Payment of Domestic Support Obligations and Filing of Required Tax
Returns" (individual cases only) (3 business days before
confirmation hearing).
* Friday, Sept. 22, 2023, is the Deadline for Filing Exhibit
Register and Uploading Any Exhibits a Party Intends to Introduce
into Evidence at the confirmation hearing (3 business days before
confirmation hearing).
About BH 7904 11 FLR
BH 7904 11 FLR, LLC, is a Florida limited liability company was
formed on March 12, 2020.
The Debtor filed a Chapter 11 bankruptcy petition (Bankr. S.D. Fla.
Case No. 23-14851) on June 21, 2023, estimating up to $500,000 in
total assets and less than $50,000 in liabilities.
Chad Van Horn, Esq. of VAN HORN LAW GROUP, P.A., serves as the
Debtor's legal counsel.
BLUEKEY CONSTRUCTION: Court OKs Cash Collateral Access Thru Dec 31
------------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Georgia,
Atlanta Division, authorized BlueKey Construction & Claims, LLC to
use cash collateral on an interim basis in accordance with the
budget, with a 10% variance, through and including December 31,
2023.
The Debtor asserts that (i) it is indebted to the U. S. Small
Business Administration pursuant to an Economic Injury Disaster
Loan, number ending in 8602, represented by a Note dated March 23,
2021, in the original principal amount of $150,000, accruing
interest at the rate of 3.75% per annum, as subsequently modified
and increased to the principal amount of $2 million, (ii) the funds
advanced by the SBA are only available for working capital, and
(iii) the SBA Debt is secured by a security interest in, among
other assets, chattel paper, receivables, accounts, instruments,
intangibles, deposit accounts, and commercial tort claims, the
proceeds of which constitute "Cash Collateral." The SBA recorded a
UCC-1 financing statement at 038-2021-009176, Coweta County
Records.
As partial adequate protection of its interests in any cash
collateral expended by the Debtor, the SBA is granted a valid and
properly-perfected replacement lien, subject to prior perfected
security interests and liens, pursuant to 11 U.S.C. Section 361(2)
on all property acquired by the Debtor after the Petition Date that
is the same or similar nature, kind, or character as the collateral
to which the security interest of the SBA attached prepetition,
except that no such replacement lien will attach to the proceeds of
any avoidance actions under Chapter 5 of the Bankruptcy Code. The
Adequate Protection Lien will be deemed automatically valid and
perfected upon entry of the Order.
As additional adequate protection for the use of cash collateral,
beginning September 1, 2023, and continuing on a like day of every
month thereafter, the Debtor will make periodic payments to the SBA
in the amount of $10,310.
These events constitute an "Event of Default":
(i) the conversion or dismissal of the case;
(ii) the removal of Debtor as debtor in possession, or
(iii) entry of an Order prohibiting further Cash Collateral use.
A copy of the court's order and the Debtor's budget is available at
https://urlcurt.com/u?l=jKkiJk from PacerMonitor.com.
The Debtor projects total expenses, on a monthly basis, as
follows:
$3,0876 for August 2023;
$107,211 for September 2023;
$81,906 for October 2023;
$376,906 for November 2023; and
$100,031 for December 2023.
About BlueKey Construction & Claims, LLC
BlueKey Construction & Claims, LLC is a full service insurance
claims & restoration Company. It helps clients navigate through the
complex insurance claim and restoration process using technically
advanced thermal drone inspections and infrared (IR) mapping.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ga. Case No. 23-57389) on August 2,
2023. In the petition signed by David Lewgood, member, the Debtor
disclosed $2,033,030 in assets and $2,012,503 in liabilities.
Judge Lisa Ritchey Craig oversees the case.
G. Frank Nason, IV, Esq., at LAMBERTH, CIFELLI, ELLIS & NASON,
P.A., represents the Debtor as legal counsel.
BROWNIE'S MARINE: Incurs $190K Net Loss in Second Quarter
---------------------------------------------------------
Brownie's Marine Group, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $189,844 on $2.07 million of revenues for the three months ended
June 30, 2023, compared to a net loss of $328,663 on $2.40 million
of revenues for the three months ended June 30, 2022.
For the six months ended June 30, 2023, the Company reported a net
loss of $517,766 on $3.71 million of revenues compared to a net
loss of $772,754 on $4.37 million of revenues for the six months
ended June 30, 2022.
As of June 30, 2023, the Company had $5.31 million in total assets,
$3.07 million in total liabilities, and $2.24 million in total
stockholders' equity.
Brownie's Marine said, "We have a history of losses, and an
accumulated deficit of $16,955,261 as of June 30, 2023. Despite a
working capital surplus of $1,162,452 at June 30, 2023, the
continued losses and cash used in operations raise substantial
doubt as to the Company's ability to continue as a going concern.
The Company's ability to continue as a going concern is dependent
upon the Company's ability to continue to increase revenues,
control expenses, raise capital, and continue to sustain adequate
working capital to finance its operations. The failure to achieve
the necessary levels of profitability and cash flows would be
detrimental to the Company. We are continuing to engage in
discussions with potential sources for additional capital, however,
our ability to raise capital is somewhat limited based upon our
revenue levels, net losses and limited market for our common stock.
If we fail to raise additional funds when needed, or if we do not
have sufficient cash flows from operations, we may be required to
scale back or cease certain of our operations."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1166708/000149315223028384/form10-q.htm
About Brownie's Marine
Headquartered in Pompano Beach, Florida, Brownie's Marine Group,
Inc., owns and operates a portfolio of companies with a
concentration in the industrial, and recreational diving industry.
The Company, through its subsidiaries, designs, tests,
manufactures, and distributes recreational hookah diving,
yacht-based scuba air compressors and nitrox generation systems,
and scuba and water safety products in the United States and
internationally.
Brownie's Marine reported a net loss of $1.89 million for the year
ended Dec. 31, 2022, compared to a net loss of $1.59 million for
the year ended Dec. 31, 2021. As of March 31, 2023, the Company
had $5.32 million in total assets, $2.90 million in total
liabilities, and $2.41 million in total stockholders' equity.
Margate, Florida-based Assurance Dimensions, the Company's auditor
since 2023, issued a "going concern" qualification in its report
dated March 30, 2023, citing that the Company had a net loss of
approximately $1,893,000 and cash used in operating activities of
approximately $678,000 for the year ended Dec. 31, 2022 as well as
an accumulated deficit of approximately $16,437,000 as of Dec. 31,
2022. These factors raise substantial doubt about the Company's
ability to continue as a going concern.
CELSIUS NETWORK: Kelly Says Disclosures Inadequate
--------------------------------------------------
Claimant Jonathan Kelly, holder of Claim No. 32204 in the amount of
no less than $311,888, objects to the adequacy of the Debtors,
Celsius Network LLC, et al.'s Disclosure Statement and to approval
of the settlement by and among the Debtors and Committee of
Unsecured Creditors with respect to the Committee Class Claim.
Claimant Jonathan Kelly joins in and incorporates by reference the
applicable arguments and statements raised in the objections filed
by Santos Caceres, the United States Trustee, Otis Davis and
others.
Attorneys for Jonathan Kelly:
John D. Giampolo, Esq.
ROSENBERG & ESTIS, P.C.
733 Third Avenue
New York, NY 10017
Telephone: (212) 551-1273
E-mail: jgiampolo@rosenbergestis.com
About Celsius Network
Celsius Network LLC -- http://www.celsius.network/-- is a
financial services company that generates revenue through
cryptocurrency trading, lending, and borrowing, as well as by
engaging in proprietary trading.
Celsius helps over a million customers worldwide to find the path
towards financial independence through a compounding yield service
and instant low-cost loans accessible via a web and mobile app.
Celsius has a blockchain-based fee-free platform where membership
provides access to curated financial services that are not
available through traditional financial institutions.
The Celsius Wallet claims to be one of the only online crypto
wallets designed to allow members to use coins as collateral to get
a loan in dollars, and in the future, to lend their crypto to earn
interest on deposited coins (when they're lent out).
Crypto lenders such as Celsius boomed during the COVID-19 pandemic,
drawing depositors with high interest rates and easy access to
loans rarely offered by traditional banks. But the lenders'
business model came under scrutiny after a sharp sell-off in the
crypto market spurred by the collapse of major tokens terraUSD and
luna in May 2022.
New Jersey-based Celsius froze withdrawals in June 2022, citing
"extreme" market conditions, cutting off access to savings for
individual investors and sending tremors through the crypto
market.
The list of major crypto firms that have filed for bankruptcy
protection in 2022 now includes Celsius Network, Three Arrows
Capital and Voyager Digital.
Celsius Network, LLC and its subsidiaries sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case
No. 22-10964) on July 14, 2022. In the petition filed by CEO Alex
Mashinsky, the Debtors estimated assets and liabilities between $1
billion and $10 billion.
The Debtors tapped Kirkland & Ellis, LLP and Kirkland & Ellis
International, LLP as bankrupty counsels; Fischer (FBC & Co.) as
special counsel; Centerview Partners, LLC as investment banker; and
Alvarez & Marsal North America, LLC as financial advisor. Stretto
is the claims agent and administrative advisor.
On July 27, 2022, the U.S. Trustee appointed an official committee
of unsecured creditors. The committee tapped White & Case, LLP as
its bankruptcy counsel; Elementus Inc. as its blockchain forensics
advisor; M3 Advisory Partners, LP as its financial advisor; and
Perella Weinberg Partners, LP as its investment banker.
Shoba Pillay, Esq., is the examiner appointed in the Debtors'
Chapter 11 cases. Jenner & Block, LLP and Huron Consulting
Services, LLC, serve as the examiner's legal counsel and financial
advisor, respectively.
CLAREHOUSE LIVING: No Decline in Patient Care, 9th PCO Report Says
------------------------------------------------------------------
Melanie McNeil, Esq., the court-appointed patient care ombudsman,
filed with the U.S. Bankruptcy Court for the Northern District of
Georgia a ninth report regarding the quality of patient care
provided at Clarehouse Living, Inc.'s personal care homes in Powder
Springs, Ga.
The PCO on July 11 visited the two facilities operated by
Clarehouse Living and reported as follows:
* The OR visited with 10 residents and direct care staff.
Residents were satisfied with their care. The OR received no
complaints. Residents related they are comfortable in speaking with
staff and the OR. The owner said they did some purging of unused
items. Food and supplies seemed adequate. No decline in care was
noted.
* The OR visited with two residents, and direct care staff. No
complaints were made. The staff were friendly and cooperative.
Residents were satisfied with the quality of care and were
comfortable speaking with the OR. They had adequate food and
supplies. No decline in care was noted.
The patient care ombudsman is not aware of any significant change
in facility conditions or decline in resident care for this
personal care home since her appointment.
A copy of the ninth ombudsman report is available for free at
https://urlcurt.com/u?l=LmMLaV from PacerMonitor.com.
About Clarehouse Living
Clarehouse Living, Inc. is an operator of a licensed personal care
home for elderly or disabled residents in Georgia.
Clarehouse Living sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Ga. Case No. 22-50035) on Jan. 3,
2022, with up to $1 million in both assets and liabilities. Judge
Lisa Ritchey Craig oversees the case.
Ian M. Falcone, Esq., at Falcone Law Firm, PC is the Debtor's
counsel.
Melanie S. McNeil, Esq., is the patient care ombudsman appointed in
the Debtor's case.
CLEAN BEAUTY: Case Summary & 30 Largest Unsecured Creditors
-----------------------------------------------------------
Three affiliates of Amyris, Inc., that concurrently filed voluntary
petitions for relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Clean Beauty Collaborative, Inc. 23-11224
5885 Hollis Street
Suite 100
Emeryville, CA 94608
Clean Beauty 4U LLC 23-11225
5885 Hollis Street
Suite 100
Emeryville, CA 94608
Clean Beauty 4U Holdings, LLC 23-11226
Business Description: The Debtors were founded in 2003 to create a
more stable supply of a key anti-malarial
treatment.
Chapter 11 Petition Date: August 21, 2023
Court: United States Bankruptcy Court
District of Delaware
Debtors' Counsel: James E. O'Neil, Esq.
PACHULSKI STANG ZIEHL & JONES LLP
919 North Market Street
17th Floor
Wilmington, DE 19801
Tel: 302-652-4100
Email: joneill@pszjlaw.com
Debtors'
Financial
Advisor: PRICEWATERHOUSECOOPERS LLP
Debtors'
Investment
Banker: INTREPID INVESTMENT BANKERS LLC
Debtors'
Corporate
Counsel: FENWICK & WEST, LLP
Debtors'
Claims,
Noticing,
Solicitation
Agent and
Administrative
Advisor: STRETTO, INC.
Estimated Assets
(on a consolidated basis): $500 million to $1 billion
Estimated Liabilities
(on a consolidated basis): $1 billion to $10 billion
The petitions were signed by Caroline Hadfield as chief executive
officer.
Full-text copies of the petitions are available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/J7GTBUA/Clean_Beauty_Collaborative_Inc__debke-23-11224__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/OFH6CAI/Clean_Beauty_4U_LLC__debke-23-11225__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/OMXNSCY/Clean_Beauty_4U_Holdings_LLC__debke-23-11226__0001.0.pdf?mcid=tGE4TAMA
The Debtors seek joint administration of their cases under the Lead
Case Amyris, Inc., et al. Case No. 23-11131.
Consolidated List of Debtors' 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. U.S. Bank N.A. 1.50% Notes Due $690,000,000
800 Nicollet Mall 2026
Minneapolis, MN 55402
Bradley Scarbrough
Email: bradley.scarbrough@usbank.com
2. Cosan US LLC Settlement $10,800,000
920 Wayland Cir Agreement
Bensalem, PA 19020
Lineu Moran
Tel: 215.245.2042
Email: Lineu.Moran@moovelub.com
3. DB Ventures Limited Trade Payable $7,200,000
33 Great Portland Street
London, W1W 8QG
AR Dept.
Tel: 203.146.8877
Email: accounts@davidbeckham.com
4. EPIC W12 LLC Lease $4,968,584
5th Floor 15 Watts Street Rejection
New York, NY 10013
Tel: 212.257.0147
5. PMG Worldwide, LLC Trade Payable $3,985,884
2845 W. 7th St
Fort Worth, TX 76107
Accounting
Tel: 817.420.9970
Email: accounting@pmg.com
6. Nikko Chemicals Co Ltd Profit $3,900,000
Nihonbashi-Bakurocho 1-4-8 Distribution
Chuo-ku, 13 1030002
Itakhiro; Katohito
Tel: 81.3.3661.1677
Email: itakhiro@nikkolgroup.com;
katohito@nikkolgroup.com;
7. Sartorius Corporation Trade Payable $3,818,648
24918 Network Place
Chicago, IL 60673-1249
Support
Tel: 631.254.4249
Email: support@sartorius.stedim.com
8. Hearst Magazine Media Trade Payable $3,311,007
300 West 57th Street
28th Floor
New York, NY 10019
AR Dept.
Tel: 212.649.3431
Email: ARDeptHSC@hearst.com
9. Cosmetix West Trade Payable $2,909,564
2305 Utah Avenue
El Segundo, CA 90245
C. Mirkovich
Tel: 310.726.3080
Email: cmirkovich@cosmetixwest.com
10. Wiley Companies Trade Payable $2,864,878
PO Box 933322
Cleveland, OH 44193
Joshua Wiley
Tel: 740.622.0755
Email: joshuawiley@organictech.com
11. Park Wynwood LLC Lease $2,743,339
855 Front Street Rejection
San Francisco, CA 94111
Glenn; Jesse; Richard
Tel: 415.310.9059
Email:
glenn@brickandtimbercollective.com;
jesse@brickandtimbercollective.com;
richard.appelbaum@kyl.com
12. Allog Transportes Internacionais Trade Payable $2,215,494
Av. Joao Scaparo Neto,
84, Bloco C,
Campinas, SP 13080-655
Tel: 55.47.32411756
13. Nest-Filler USA Trade Payable $1,958,858
2334 E Valencia Drive
Fullerton, CA 92831
Accounting
Tel: 714.522.7707
Email: accounting@nfbeautygroup.com
14. Global4PL Supply Trade Payable $1,757,970
Chain Services
1525 McCarthy Blvd.
Suite 1008
Milpitas, CA 95035
Sergio Retamal
Tel: 866.475.1120
Email: sergio.retamal@global.4pl.com
15. ADL Biopharma Trade Payable $1,586,149
Km. 1,100 - Edificio Gamma
Alcobendas (Madrid), 28108
Tel: 34.987.895p.800
16. Evonik Corporation Trade Payable $1,529,627
P.O. Box 730363
Dallas, TX 7537
Paul Romesburg
Tel: 707.230.1751
Email: paul.romesburg@evonik.com
17. Microsoft Corporation Trade Payable $1,517,283
6100 Neil Road
Bldg A
Reno, NV 89511
V. Ertr
Email: v.ertr@microsoft.com
18. Palm Beach Holdings 3940, LLC Lease $1,365,708
801 Brickwell Ave Obligation
Suite 900
Miami, FL 33131-2979
Jose Perez
Email: Jose.Perez@colliers.com
19. Todd Shemarya Artists, Inc. Trade Payable $1,325,669
2550 outpost drive
Los Angeles, CA 90068
Josh
Tel: 323.655.3757
Email: josh@shemarya.com
20. Allure Labs, Inc. Trade Payable $1,291,810
30901 Wiegman Rd
Hayward, CA 94544
Sunita
Tel: 510.489.8896
Email: sunita@allurelabs.com
21. Rakuten Marketing Trade Payable $1,288,733
Suite 300
6985 S Union Park Center
Midvale, UT 84047
President; General Counsel
Tel: 646.864.4718
Email: president@mail.rakuten.com;
generalcounsel@rakuten.com
22. Northwest Cosmetic Labs Trade Payable $1,288,014
2105 Boge Ave.
Idaho Falls, ID 83401
AR Dept.
Tel: 208.522.6723
Email: ar@elevationlabs.com
23. Shearman & Sterling LLP Professional $1,263,611
589 Lexington Ave Services
New York, NY 10022
A. Loeffler
Email: ALoeffler@Shearman.com
24. Outfront Media Trade Payable $1,240,508
2640 NW 17th Ln
Pompano Beach, FL 33064
Sandra Vicente
Tel: 407.274.8381
Email: sandra.vicente@outfront.com
25. ES East, LLC Trade Payable $1,145,204
1120 Nye Street, Suite 400
San Rafael, CA 94901
K. Sawyer; C. Kargl; M. Buttrum
Email:
KSawyer@warehamdevelopment.com;
CKargl@warehamdevelopment.com;
MButtrum@warehamdevelopment.com
26. Gibson, Dunn & Crutcher LLP Professional $1,141,689
333 South Grand Avenue Services
Los Angeles, CA 90071
M. Celio; C. Block
Tel: 213.229.7120
Email: MCelio@gibsondunn.com;
CBlock@gibsondunn.com
27. Workday, Inc. Trade Payable $1,089,362
6110 Stoneridge Mall Road
Pleasanton, CA 94588
Legal Dept.
Tel: 765.509.4592
Email: legal@workday.com
28. Hollis R & D Associates Lease $1,079,806
1120 Nye St Rejection
Suite 400
San Rafael, CA 94901
K. Sawyer; C. Kargl; M. Buttrum
Tel: 415.457.4964
Email:
KSawyer@warehamdevelopment.com;
CKargl@warehamdevelopment.com;
MButtrum@warehamdevelopment.com
29. DSM USA Trade Payable $1,052,904
5750 Martin Luther King Jr Hwy
Greenville, NC 27834
Tel: 252.707.5326:
Email: dnp.sfsc@dsm.com
30. Nippon Surfactant Industries Co., Profit $1,000,000
Ltd (Nissa) Distribution
Nihonbashi-Bakurocho 1-4-8
Chuo-ku
Tokyo, 1030002 JAPAN
Itakhiro; Katohito
Tel: 81.3.3662.0378
Email: itakhiro@nikkolgroup.com;
katohito@nikkolgroup.com
CLEAN ENERGY: Posts $758K Net Loss in Second Quarter
----------------------------------------------------
Clean Energy Technologies, Inc. filed with the Securities and
Exchange Commission its Quarterly Report on Form 10-Q disclosing
a net loss of $757,518 on $4.80 million of net total sales for the
three months ended June 30, 2023, compared to a net loss of
$346,943 on $1.75 million of net total sales for the three months
ended June 30, 2022.
For the six months ended June 30, 2023, the Company reported a net
loss of $1.79 million on $7.70 million of net total sales compared
to a net loss of $459,531 on $2.52 million of net total sales for
the six months ended June 30, 2022.
As of June 30, 2023, the Company had $10.80 million in total
assets, $5.06 million in total liabilities, and $5.73 million in
total stockholders' equity.
Clean Energy said, "The Company had a total stockholder's equity of
$5,735,399 and a working capital of $2,124,013 as of June 30, 2023.
The company also had an accumulated deficit of $19,108,028 as of
June 30, 2023. Therefore, there is substantial doubt about the
ability of the Company to continue as a going concern. CETY has a
clear strategy in place and has the capability to successfully
restructure its existing debt and secure additional financing.
With its current strategic approach and diversification of its
products and solutions, the management has created a favorable
environment for the company to transition towards profitability."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1329606/000149315223028646/form10-q.htm
About Clean Energy
Headquartered in Costa Mesa, California, Clean Energy Technologies,
Inc. -- http://www.cetyinc.com-- designs, produces and markets
clean energy products and integrated solutions focused on energy
efficiency and renewables. The Company provides waste heat
recovery solutions, waste to energy solutions, and engineering,
consulting and project management solutions.
Spokane, Washington-based Fruci & Associates II, PLLC, the
Company's auditor since 2015, issued a "going concern"
qualification in its report dated April 17, 2023, citing that the
Company has an accumulated deficit, a working capital deficit and
negative cash flows from operations. These factors, among others,
raise substantial doubt about the Company's ability to continue as
a going concern.
CLEARY PACKAGING: Cantwell-Cleary Files Competing Plan
------------------------------------------------------
Cantwell-Cleary Co., Inc. filed an Amended Chapter 11 Plan and a
Restated Disclosure Statement for debtor Cleary Packaging, LLC.
Cantwell-Cleary is proposing a competing plan of reorganization to
satisfy claims of creditors under the Plan.
The Plan will be funded from cash on hand, account receivables,
revenues from operations, and from proceeds of Avoidance
Actions/Causes of Action and from proceeds of the purchase of the
Equity Interests in the Debtor.
Class 4 Allowed Unsecured Claim of Robert Smith, Jr., arises out of
a mass tort/personal injury claim against the Debtor and its
insurer, Erie Insurance, in the case captioned Robert Smith, Jr. v.
Cleary Packaging, LLC et al., Case No. C-04-CV-21-000068 (Calvert
County, MD). The Holder of the Class 4 Claim shall be entitled to
pursue his Claim(s) as to any insurance proceeds that may be
available through the Debtor's insurer, Erie Insurance, leaving no
residual Claim against the Debtor. For the avoidance of doubt, the
Class 4 Claim is limited to recovery, if any, against the Debtor's
Erie Insurance policy, and the Holder of the Class 4 Claim shall
have no monetary claim against the Debtor or its bankruptcy estate.
Class 4 is unimpaired.
Class 5 Allowed General Unsecured Claims total $5,288,551. Class 5
is impaired.
Class 5 Claims are comprised of the following alleged and/or
asserted Claims: (i) the Judgment against Cantwell-Cleary in the
amount approximately $4,819,124.10; (ii) the scheduled Claim of
Linda Barstow in the amount of approximately $75,000.00; (iii) the
filed Claim of Marcus Bonsib, LLC in the amount of $205,377.74;
(iv) the Unsecured Claim of Axxis in the amount of $88.69; (v) the
Unsecured Claim of Berran Industrial Group in the amount of
$452.05; (vi) the Unsecured Claim of Better Packages, Inc. in the
amount of $99.25; (vii) the Unsecured Claim of DuBose Strapping
Inc. in the amount of approximately $1,183.43; (viii) the Unsecured
Claim of Encore Packaging in the amount of $70.75; (ix) the
Unsecured Claim of Essedant in the amount of $1,383.01; (x) the
Unsecured Claim of Inflatable Packaging, Inc. in the amount of
$161.04; (xi) the Unsecured Claim of Intertape Polymer Group in the
amount of $434.02; (xii) the Unsecured Claim of Lindenmeyr Munroe
in the amount of $2,500.00; (xiii) the Unsecured Claim of Penske
Baltimore South in the amount of $47.73; (xiv) the Unsecured Claim
of Rescue One Training for Life, Inc. in the amount of $910.00;
(xv) the Unsecured Claim of RJ Schinner Company in the amount of
$167.28l; (xvi) the Unsecured Claim of Shurtape in the amount of
$4,073.09; (xvii) the Unsecured Claim of Waterlogic Americas, LLC
in the amount of $258.92; and (xviii) the alleged Unsecured Claim
of Vincent D. Cleary, Jr. in the amount of $176,437.90.
In the event the Lease of the Debtor's commercial space is
rejected, the lessor could assert a rejection damage claim in an
amount estimated by the Debtor to be $242,131.72. The rejection
damage claim, if and to the extent asserted, will constitute a
Class 5 Claim. Notwithstanding a rejection of the lease, should it
happen, Holders of Allowed Class 5 Claims will receive a minimum
distribution of 50% of their Allowed Class 5 Claims before any
distribution is made to Cantwell-Cleary. Once Holders of Allowed
Class 5 Claims (other than Cantwell-Cleary) receive 50% of their
Allowed Class 5 Claims, distributions to Allowed General Unsecured
Claims will then be allocated to Holders of Allowed Class 5 Claims
on a pro-rata basis. Cantwell-Cleary anticipates that, in total,
Holders of Allowed Class 5 Claims (other than Cantwell-Cleary) will
receive between 60% and 70% of their Allowed Class 5 Claims.
Distributions to Holders of Class 5 Claims shall be made
semi-annually, beginning in November and May of each year during
the term of this 60-month Plan, beginning on November 15, 2023.
The Bankruptcy Court will hold a hearing on confirmation of the
Plan beginning on September 26, 2023, at the hour of 10:00 a.m.
EST, and continuing, if necessary, on September 28, 2023 at 10:00
a.m. in Courtroom 9C of the United States Bankruptcy Court, 101 W.
Lombard Street, Baltimore, Maryland 21201.
Counsel to Cantwell-Cleary Co., Inc.:
Steven L. Goldberg, Esq.
MCNAMEE HOSEA, P.A.
6411 Ivy Lane, Suite 200
Greenbelt, MD 20770
Tel: 301-441-2420
A copy of the Restated Disclosure Statement dated August 11, 2023,
is available at bit.ly/3sh6scA from PacerMonitor.com.
About Cleary Packaging
Cleary Packaging, LLC is a wholesale distributor of packaging and
janitorial supplies. The company sought protection under Subchapter
V of Chapter 11 of the Bankruptcy Code (Bankr. D. Md. Case No.
21-10765) on Feb. 7, 2021.
At the time of the filing, the Debtor disclosed assets of between
$1 million and $10 million and liabilities of the same range. The
Debtor tapped Yumkas, Vidmar, Sweeney & Mulrenin as its legal
counsel and George S. Magas CPA, PC, as its accountant.
Scott W. Miller has been appointed as Subchapter V Trustee for the
Debtor.
CMG MEDIA: Lord Abbett CB Marks $10MM Loan at 16% Off
-----------------------------------------------------
Lord Abbett Corporate Bond Fund has marked its $10,046,371 loan
extended to CMG Media Corp. to market at $8,388,720 or 84% of the
outstanding amount, as of May 31, 2023, according to Lord Abbett
CB'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 CB is a participant in a 2021 Term Loan to CMG Media
Corp. The loan accrues interest at a rate of 8.66% (3 mo. USD LIBOR
+ 3.50%) per annum. The loan matures on December 17, 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
fourteen funds as of May 31, 2023. This report covers the following
twelve 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.
CMG Media Corp, also known as Cox Media Group, is a marketing and
advertising agency providing multichannel solutions and premium
inventory. CMG Media is an American media conglomerate principally
owned by Apollo Global Management in conjunction with Cox
Enterprises, which maintains a 29% minority stake in the company.
CONDOR INVERSIONES: Gets Stay Order in Chapter 11 Case
------------------------------------------------------
Alex Wittenberg of Law360 reports that a Texas bankruptcy judge
granted Chilean renewable energy company Condor Inversiones SpA's
bid for an order ensuring that its Chapter 11 automatic stay
provisions will be honored in Chile, a move the company said would
help it ward off potential litigation and other actions that could
compromise assets.
The Debtors in the chapter 11 cases are Cóndor Inversiones SpA,
Huemul Inversiones SpA and Condor II, LLC.
The Inversiones Debtors are two intermediate holding companies that
own the corresponding holding operating companies -- Condor
Energía SpA ("Cóndor OpCo Borrower") and Huemul Energia SpA
("Huemul OpCo Borrower") -- for the Cóndor and Huemul Projects,
which consist of wind and solar generation facilities. Debtors
Cóndor Inversiones and Huemul Inversiones are the direct owners of
the Condor OpCo Borrower and the Huemul OpCo Borrower,
respectively. The two biggest assets of the Inversiones Debtors
were (a) their intercompany debt claims against the Condor and
Huemul OpCo Borrowers and (b) their 100% equity interest in the
Condor and Huemul OpCo Borrowers -- both of which Mainstream seems
to have taken actions to impair and/or render worthless.
The Debtors are filing the Chapter 11 cases now because they need
to stop Mainstream's ongoing actions directed at these assets.
Although Mainstream is the Inversiones Debtors' indirect parent
and, thus, structurally subordinate to the Inversiones Debtors'
creditors, Mainstream has used its previous control of the
Inversiones Debtors -- while Mainstream knew that the borrower owed
over $300 million of debt, which the Inversiones Debtors guarantee,
was under payment default -- to attempt to take or render worthless
the Inversiones Debtors' assets for Mainstream's own benefit. Among
other things, Mainstream installed itself as administrator (a
Chilean analog to LLC managers) of the Inversiones Debtors and
their direct subsidiaries. Mainstream then purported to agree with
itself -- ostensibly wearing the hats of both the Inversiones
Debtors and their direct subsidiaries -- that: (a) despite the fact
that the Debtors already held 100% of the Cóndor and Huemul OpCo
Borrowers' equity, all of the Inversiones Debtors' intercompany
debt claims against their direct subsidiaries would be converted to
additional equity shares in the Condor and Huemul OpCo Borrowers
(increasing the number of shares cannot increase the aggregate
value of all outstanding shares); (b) those subsidiaries would be
pre-authorized to issue trillions of new shares that would render
the Inversiones Debtors' shares in those subsidiaries worthless
through massive dilution; (c) the Inversiones Debtors would waive
their preemptive rights to purchase those new shares; and (d)
several Mainstream employees were authorized to enter into one or
more subscription agreements for the new shares on behalf of the
Cóndor and Huemul Opco Borrowers.
Although Mainstream no longer has control of the Inversiones
Debtors as a result of the appointment of me and two other new
Administrators, Mainstream is continuing to take actions directed
at the Inversiones Debtors' assets. These actions need to stop so
the Inversiones Debtors can fulfill their obligations to their own
creditors to maximize the value of their estates.
About Condor Inversiones SpA
Condor Inversiones SpA is in the business of electric power
generation, transmission, and distribution.
Condor Inversiones SpA and two affiliates sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead Case
No. 23-90761) on Aug. 11, 2023.
In the petition filed by Mark A. McDermott, as administrator,
Condor Inversiones reported estimated assets (on a consolidated
basis) between $100 million and $500 million and estimated
liabilities (on a consolidated basis) between $100 million and $500
million.
The Debtors tapped JONES DAY and JACKSON WALKER LLP as counsel.
CONNECTWISE: Fitch Affirms 'B+' LongTerm IDR, Outlook Stable
------------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Issuer Default Rating
(IDR) of ConnectWise Holdings, LLC and ConnectWise, LLC (dba
ConnectWise) at 'B+'. The Rating Outlook is Stable. Fitch has also
affirmed ConnectWise's $70 million secured revolving credit
facility (RCF) and $1.05 billion first lien secured term loan at
'BB+'/'RR1'. ConnectWise, LLC is the issuer of debt.
The ratings are supported by ConnectWise's industry-leading
software solutions for Managed Service Providers (MSPs) and
Technology Success Providers (TSPs). The company's growth strategy
and private equity ownership could limit deleveraging despite the
FCF generation projected for the company. Fitch expects the company
to prioritize tuck-in acquisitions as part of its growth strategy
over accelerated deleveraging, and expects gross leverage to remain
over 4.0x in the near term.
KEY RATING DRIVERS
Industry Tailwind Supports Growth: ConnectWise's end-markets are
small- and medium-sized businesses (SMBs) that lack IT resources
and look to MSPs and TSPs to provide technology solutions. The
managed services market is estimated to grow in the high single
digits to low-teens supported by increasing dependence of
businesses on technology for all aspects of operations.
In addition, the migration to cloud services and hybrid IT services
further increases complexity in management of IT resources that
creates further incremental demand. Fitch believes these factors
serve as underlying demand growth drivers for managed services
resulting in greater demand for ConnectWise's products.
High Levels of Recurring Revenues and Revenue Retention: Recurring
revenue represents over 95% of total revenue, while net retention
rate has sustained over 100%. These attributes provide significant
visibility into future revenue streams and profitability.
Diversified Customer Base with SMB Exposure: ConnectWise serves
over 35,000 customers globally. No single customer represented over
1% of Annual Recurring Revenue (ARR). While ConnectWise's customers
are concentrated in MSPs and TSPs, the end-markets represent a
diverse cross-section of industries. In Fitch's view, the diverse
set of customers and industry verticals in the end-markets should
minimize idiosyncratic risks that may arise from customers or
industry concentration. Through the MSPs and TSPs, ConnectWise is
indirectly exposed to the SMB market segment as SMBs lack
sophisticated IT resources to manage the increasingly complex IT
environment and leverage services provided by MSPs and TSPs.
Cross-Selling Opportunities: ConnectWise's software ARR growth has
outpaced customer growth, demonstrating growth in revenue per
customer. This is attributed to its broad product portfolio and its
ability to increase product penetration into existing customer
base. In addition to supporting revenue growth, Fitch believes
ConnectWise also benefits through greater customer retention as the
products become more integrated with the customers' operations.
M&A Central to Growth Strategy: The company is active in M&As as a
strategy to expand its product offerings and geographical
footprint. Since 2015, ConnectWise has acquired Screen Connect,
HTG, ITBoost, BrightGauge, Continuum, Service Leadership, Perch
Security, Stratozen, SmileBack and Wise-Sync. These acquisitions
expanded ConnectWise's offerings in the three products areas of
Business Management, Security Management and Unified Management and
also geographical footprint. Despite the acquisitive nature of the
company, its net leverage has historically reverted back to 4x-5.5x
within 12 months after temporary increases.
Narrow Niche Market Focus: ConnectWise's software solutions cater
primarily to the MSP and TSP market. The company provides broad
solutions that facilitate their customers' operations in support of
the SMB end-market. In Fitch's view, the narrow market focus is
effectively mitigated given the broader end-market. However, the
narrow focus in serving the MSP and TSP market does expose
ConnectWise to systemic risks associated with the specific market.
Moderate Financial Leverage: Fitch estimates gross leverage to be
4.3x in 2023 with capacity to delever over the rating horizon
supported by strong FCF generation. However, given the private
equity ownership that is likely to prioritize ROE, Fitch believes
accelerated debt repayment is unlikely. Fitch expects excess
capital to be used for acquisitions to accelerate growth or for
dividends to equity owners with financial leverage remaining at
moderate levels.
DERIVATION SUMMARY
ConnectWise is a leader in the fragmented niche market of
mission-critical software solutions that supports the MSPs and
TSPs. The products facilitate their customers ongoing operations in
areas of Business Management, Security Management, and Unified
Management in serving the SMB end-markets. ConnectWise's recurring
revenue represents over 95% of total revenue and net retention
rates have sustained over 100% in recent years. It serves over
35,000 customers with no single customer representing more than 1%
of revenue.
The MSP and TSP markets are projected to grow in the low-teens
supported by the increasing complexity in IT infrastructure and
applications. ConnectWise's revenue visibility, profitability,
financial structure and liquidity compare well against vertical
industry software peers in the 'B' category. Consistent with other
private equity owned software peers, the ownership structure could
optimize ROE limiting the prospect for accelerated deleveraging.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within the Rating Case for the Issuer
-- Revenue growth in the low teens;
-- EBITDA margins in the mid-30s in 2023 reflects higher
investment in sales and marketing. Margins rise to a stable
level of the high-30s after that;
-- Capex intensity 5.5% of revenue;
-- Debt repayment limited to mandatory amortization;
-- Aggregate acquisitions of $500 million through 2027;
-- $300 million in debt-financed dividends assumed in 2026.
KEY RECOVERY RATING ASSUMPTIONS
-- The recovery analysis assumes that ConnectWise would be
reorganized as a going-concern in bankruptcy rather than
liquidated;
-- Fitch has assumed a 10% administrative claim.
Going-Concern (GC) Approach
-- In estimating a distressed EV for ConnectWise, Fitch assumes a
combination of customer churn and margin compression on lower
revenue scale in a distressed scenario to result in approximately
10% revenue decline leading to a going concern EBITDA that is
approximately 15% lower relative to 2022 adjusted EBTIDA;
-- Fitch assumes an adjusted distressed enterprise valuation of
$1.16 billion using approximately $185 million in going-concern
EBITDA;
-- Fitch assumes that ConnectWise will receive a going-concern
recovery multiple of 7.0x. The estimate considers several factors,
including the highly recurring nature of the revenue, the high
customer retention, the secular growth drivers for the sector, the
company's strong FCF generation and the competitive dynamics. The
EV multiple is supported by:
-- The historical bankruptcy case study exits multiples for
technology peer companies ranged from 2.6x to 10.8x;
-- Of these companies, only three were in the Software sector:
Allen Systems Group, Inc., Avaya, Inc. and Aspect Software Parent,
Inc., which received recovery multiples of 8.4x, 8.1x and 5.5x,
respectively;
-- The highly recurring nature of ConnectWise's revenue and
mission critical nature of the product support the high-end of the
range.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- EBITDA leverage sustaining below 4.0x;
-- (CFO - capex)/debt ratio sustaining near 10%;
-- Organic revenue growth sustaining above the high single digits;
-- Diversification of product focus.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- EBITDA leverage sustaining above 5.5x;
-- (CFO - capex)/debt ratio sustaining below 7.5%;
-- Organic revenue growth sustaining near 0%.
LIQUIDITY AND DEBT STRUCTURE
Adequate Liquidity: The company's liquidity is projected to be
adequate, supported by its FCF generation and an undrawn $70
million RCF, and readily available cash and cash equivalents. Fitch
forecasts ConnectWise's FCF margins to remain in high teens through
2026 supported by EBITDA margin in the high-30's.
Debt Structure: ConnectWise has $1.05 billion of secured first lien
debt due 2028. Given the recurring nature of the business and
adequate liquidity, Fitch believes ConnectWise will be able to make
its required debt payments.
ISSUER PROFILE
ConnectWise is a provider of software solutions for IT Managed
Service Providers (MSPs) and Technology Success Providers (TSPs)
encompassing the full scope of business activities including
Business Management, Security Management, and Unified Management.
ConnectWise serves over 35,000 customers globally.
ESG CONSIDERATIONS
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
ENTITY / DEBT RATING RECOVERY PRIOR
------------- ------ -------- -----
ConnectWise, LLC LT IDR B+ Affirmed B+
senior secured LT BB+ Affirmed RR1 BB+
ConnectWise Holdings, LLC LT IDR B+ Affirmed B+
CSR WORLDWIDE: Court OKs Cash Collateral Access on Final Basis
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Oklahoma
authorized CSR Worldwide, Inc. to use the cash collateral of Bank
of Hays on a final basis in accordance with the budget, with a 10%
variance.
The Debtor intends to use cash collateral to pay expenses of the
operation of its business.
BOH claims liens in all the Debtor's assets and is owed
approximately $5.7 million by the Debtor on the notes associated
with BOH's lien.
An unknown party through the Corporation Service Company and Zahav
Asset Management, LLC may claim a lien in the Debtor's assets, but
BOH asserts that the balance owed to BOH exceeds the value of the
Debtor's assets, and therefore, any such claim these parties might
have would be unsecured.
The Debtor is not aware of any other party that claims a security
interest in all the Debtor's assets.
As of the filing date, Debtor claims the value of its assets totals
$7.8 million.
The Debtor asserts the value of its inventory is $140,000 and the
value of its accounts receivable is $1,255. The total value of the
cash collateral claimed by the Debtor is $141,255. All of the cash
of the Debtor in existence on the Petition Date and all cash that
is acquired by the Debtor after the Petition Date as proceeds of
pre-petition collateral constitutes cash collateral within the
meaning of 11 U.S.C. Section 363(a) for BOH's benefit.
These events constitute an "Event of Default":
1) expenditures in excess of the Budget with the variances as
specified in the Motion;
2) expenditures not included in the Budget and not otherwise
approved by BOH in writing;
3) the obtaining after the Petition Date of credit or the incurring
indebtedness that is (i) secured by a security interest, mortgage,
or other lien on all or any portion of BOH's Collateral which is
equal or senior to any security interest or other lien of BOH, or
(i) entitled to priority administrative status which is equal or
senior to that granted to BOH;
4) the entry of an order by the Court (other than the Final Order
or any order entered pursuant to 11 U.S.C. Section 364 pursuant to
which BOH makes or participates in a post-petition loan to the
Debtor) granting relief from or modifying the automatic stay of 11
U.S.C. Section 362 (i) to allow any creditor to execute upon or
enforce a lien on or security interest in any cash collateral, or
(ii) with respect to any lien of or the granting of any lien on any
cash collateral to any state or local environmental or regulatory
agency or authority, which in either case would have a material
adverse effect on the business, operations, property, assets, or
condition, financial or otherwise, of Debtor;
5) dismissal of the case or conversion of the case to Chapter 7
case, or, other than the Subchapter V Trustee, appointment of a
Chapter 11 trustee or examiner with enlarged powers or other
responsible person;
6) upon written notice from BOH of any material misrepresentation
of a material fact made after the Petition Date by Debtor about its
financial condition, the nature, extent, location or quality of any
Collateral, or the disposition or use of any Collateral, including
cash collateral;
7) the sale after the Petition Date of any portion of any of the
Debtor's assets outside the ordinary course of its business unless
otherwise approved by BOH in writing or by the Bankruptcy Court;
8) the failure of the Debtor to keep BOH's Collateral insured
against casualty loss, naming BOH as loss payee;
9) the failure by Debtor to perform, after notice from BOH, in any
respect, any of the material terms, provisions, conditions,
covenants, or obligations under the Final Order;
10) the failure by Debtor to perform, after notice from BOH, in any
respect, any of the terms, provisions, conditions, covenants, or
obligations under BOH's loan documents (excluding the terms,
provisions, conditions, covenants, or obligations under any
personal guaranty by the owners of Debtor maintained by BOH; and
11) an event of default occurs under any order entered pursuant to
11 U.S.C. Section 364 pursuant to which BOH makes or participates
in a post-petition loan to the Debtor.
For adequate protection, BOH will receive an additional and
replacement security interest and lien that is in the same priority
as existed on the Petition Date to the extent BOH hold a
prepetition valid, binding, enforceable, non-avoidable, and
perfected security interest in the prepetition cash collateral, in
the same categories of assets acquired by the Debtor postpetition
in which BOH had pre-petition security interests and only to the
extent any cash collateral is diminished post-petition together.
To the extent BOH has a claim against Debtor arising from the
diminution in value of their cash collateral, BOH reserves its
rights to assert superpriority claims pursuant to 11 U.S.C.
Sections 503(b) and 507(b).
"Carve Out" means the following amounts:
1) any statutory fees payable to the UST;
2) pursuant to 11 U.S.C. Section 726(b), claims allowed by a final
order of the Bankruptcy Court under 11 U.S.C. Section 503(b) that
are incurred after the conversion of the Chapter 11 case to a case
under Chapter 7 of the Bankruptcy Code in an amount not to exceed
$5,000.00;
3) the allowed and paid professional fees and disbursements
incurred by Debtor in attorney fees in an amount not to exceed
$50,000 LESS any sums received by the Debtor's attorneys as
proceeds of any post-petition loan approved by the Court; and
4) professional fees and disbursements incurred by any non-attorney
professionals retained by final order of the Court including any
certified public accountants retained by Debtor and appointed by
the Court in an amount not to exceed $50,000 LESS any sums received
by such professionals as proceeds of any post-petition loan
approved by the Court; and
5) fees for Subchapter V trustee in an amount not to exceed
$15,000.
A copy of the order is available at https://urlcurt.com/u?l=HQVI8X
from PacerMonitor.com.
A copy of the budget is available at https://urlcurt.com/u?l=D89NTJ
from PacerMonitor.com.
The Debtor projects total disbursements, on a weekly basis, as
follows:
$5,482 for the week of August 28, 2023; and
$8,350 for the week of September 4, 2023.
About CSR Worldwide OK, Inc.
CSR Worldwide OK, Inc. sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D. Okla. Case No. 23-80391) on June
6, 2023. In the petition signed by CEO Troy Don Burgess, the Debtor
disclosed $7,099,094 in assets and $7,130,915 in liabilities.
Judge Paul R. Thomas oversees the case.
Ron Brown, Esq., and R. Gavin Fouts, Esq., at Brown Law Firm PC,
represent the Debtor as legal counsel.
Bank of Hayes, as lender, is represented by, Thomas A. Creekmore
III, Esq. at Hall Estill Hardwick Gable Golden and Nelson PC.
DIAMONDHEAD CASINO: Incurs $367K Net Loss in Second Quarter
-----------------------------------------------------------
Diamondhead Casino Corporation filed with the Securities and
Exchange Commission its Quarterly Report on Form 10-Q disclosing
a net loss of $367,312 for the three months ended June 30, 2023,
compared to a net loss of $387,576 for the three months ended
June 30, 2022.
For the six months ended June 30, 2023, the Company reported a net
loss of $865,269 compared to a net loss of $859,098 for the six
months ended June 30, 2022.
As of June 30, 2023, the Company had $5.48 million in total assets,
$18.37 million in total liabilities, and a total stockholders'
deficit of $12.89 million.
DiamondHead said, "The Company has had no operations since it ended
its gambling cruise ship operations in 2000. Since that time, the
Company has concentrated its efforts on the development of its
Diamondhead, Mississippi property. That development is dependent
upon the Company obtaining the necessary capital, through either
equity and/or debt financing, unilaterally or in conjunction with
one or more partners, to master plan, design, obtain permits for,
construct, open, and operate a casino resort.
"In the past, in order to raise capital to continue to pay on-going
costs and expenses, the Company has borrowed funds, through Private
Placements of convertible instruments as well as through other
secured notes...The Company is in default with respect to payment
of both principal and interest under the terms of most of these
instruments. In addition, at June 30, 2023, the Company had
$13,188,293 of accounts payable and accrued expenses and $2,057 in
cash on hand.
"The above conditions raise substantial doubt as to the Company's
ability to continue as a going concern."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/844887/000149315223028188/form10-q.htm
About DiamondHead
Headquartered in Alexandria, Virginia, DiamondHead Casino
Corporation owns a total of approximately 400 acres of unimproved
land in Diamondhead, Mississippi. Active subsidiaries of the
Company include Mississippi Gaming Corporation, which owns the
approximate 400-acre site and Casino World, Inc.
Diamondhead reported a net loss of $1.86 million in 2022, a net
loss of $1.52 million in 2021, and a net loss of $2.22 million in
2020. As of Dec. 31, 2022, the Company had $5.53 million in total
assets, $17.53 million in total liabilities, and a total
stockholders' deficit of $11.99 million.
Marlton, New Jersey-based Marcum LLP, the Company's auditor since
2004 (such date takes into account the acquisition of Friedman LLP
by Marcum LLP effective Sept. 1, 2022), issued a "going concern"
qualification in its report dated March 30, 2023, citing that the
Company has a significant working capital deficiency, has incurred
significant losses, and needs to raise additional funds to meet its
obligations and sustain its operations. These conditions raise
substantial doubt about the Company's ability to continue as a
going concern.
DOLPHIN ENTERTAINMENT: Incurs $8 Million Net Loss in Second Quarter
-------------------------------------------------------------------
Dolphin Entertainment, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $7.96 million on $11.02 million of revenues for the three months
ended June 30, 2023, compared to net income of $178,687 on $10.29
million of revenues for the three months ended June 30, 2022.
For the six months ended June 30, 2023, the Company reported a net
loss of $10.93 million on $20.92 million of revenues compared to a
net loss of $1.54 million on $19.47 million of revenues for the six
months ended June 30, 2022.
As of June 30, 2023, the Company had $65.82 million in total
assets, $39.72 million in total liabilities, and $26.10 million in
total stockholders' equity.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1282224/000107997323001161/dlpn_10q.htm
About Dolphin Entertainment
Headquartered in Coral Gables, Florida, Dolphin Entertainment, Inc.
-- http://www.dolphinentertainment.com-- is an independent
entertainment marketing and premium content development company.
Through its subsidiaries, 42West LLC, The Door Marketing Group LLC
and Shore Fire Media, Ltd, the Company provides expert strategic
marketing and publicity services to many of the top brands, both
individual and corporate, in the entertainment, hospitality and
music industries.
Dolphin Entertainment reported a net loss of $4.78 million in 2022,
a net loss of $6.46 million in 2021, a net loss of $1.94 million in
2020, and net loss of $2.33 million in 2019. As of Dec. 31, 2022,
the Company had $75.37 million in total assets, $41.28 million in
total liabilities, and $34.09 million in total stockholders'
equity.
EMPOWER CLINICS: BCSC Issues Cease Trade Order
----------------------------------------------
Empower Clinics Inc., (CSE:EPW)(OTC PINK:EPWCF), an integrated
healthcare company with a developing research and clinical trials
division, on Aug. 18 announced various corporate updates.
CEASE TRADE ORDER
On August 15, 2023 the British Columbia Securities Commission
("BCSC") issued a bulletin announcing Empower is suspended pursuant
to CSE Policy 3. The suspensions are considered Regulatory Halts as
defined in National Instrument 23-101 Trading Rules and accordingly
a Cease Trade Order has been put in place on the Canadian
Securities Exchange.
The Regulatory Halt is a result of the Company currently being late
to file its adjusted year end financials as at March 31, 2023.
ACCOUNTING AND AUDIT STATUS
Audit procedures commenced at the conclusion of the adjusted year
end for the Company. In recent weeks while the Company was
arranging for additional working capital, its external accounting
group and auditors had to pause certain portions of the audit
procedures until such time as payment of professional fees could
resume. With new budgets established audit processes have
recommenced.
Steven McAuley, Chairman & CEO of Empower commented, "We have all
been aware of the broader market challenges many issuers have been
facing, and we at Empower have been impacted throughout our
divisions and in corporate operations. He continues, "I am
personally extremely disappointed to be in this position having to
overcome audit challenges that directly impact shareholders ability
to trade. We have no choice but to work diligently on the
requirements and get the cease trade order lifted as soon as we
can. We are committed to provide regular updates on our progress,
and I thank all shareholders and followers for your patience."
KAI MEDICAL LABORATORY LLC
The Company previously announced Kai Medical Laboratory LLC ("Kai")
has ceased operations at its facility in Dallas, TX. and filed a
Chapter 7 bankruptcy filing in the United States Bankruptcy Court
Northern District of Texas on May 3, 2023. The Company recently
received the Trustee's Report of No Distribution confirming
liabilities scheduled to be discharged without payment in the
amount of $2,389,757.27 USD.
The Company also announced that it entered into a debt settlement
agreement with creditors on August 14, 2023 for the settlement of
debt in the aggregate amount of $80,000 CAD, which was settled
through the issuance of an aggregate of 2,000,000 common shares in
the capital of the Company (each, a "Share") at a deemed issue
price of $0.04 per Share considered (the "Debt Settlement").
About Empower
Empower is an integrated healthcare company with multi-disciplinary
clinics, a Canadian medical device company and has launched two
clinical research sites becoming a Site Management Organization
(SMO) with six principal investigators (PI) with multiple clinical
trials under application. Empower has announced its intention to
create a proposed spinout with a focus on healthcare AI to support
identification, recruitment, and onboarding of clinical trial
patients.
FEDNAT HOLDING: Hearing on Approval Motion Continued to Aug.29
--------------------------------------------------------------
FedNat Holding Co. and its Official Committee of Unsecured
Creditors won approval of the Bankruptcy Court of their motion to
continue the hearing their joint motion for an order (I) Approving
the Filing of a Combined Disclosure Statement and Chapter 11 Plan
Of Liquidation, (II) Approving on Interim Basis the Combined
Disclosure Statement.
The Court ordered that the hearing on the Approval Motion will be
continued to Tuesday, Aug. 29, 2023, at 2:30 p.m., or as soon
thereafter as is practicable for the Court, and will be held before
the Honorable Peter D. Russin, United States Bankruptcy Judge via
Video Conference by Zoom for Government.
A full-text copy of the Combined Disclosure Statement and Plan
dated July 9, 2023 is available at https://urlcurt.com/u?l=ei0Grt
from PacerMonitor.com at no charge.
Debtors' Counsel:
Shane G. Ramsey, Esq.
NELSON MULLINS RILEY & SCARBOROUGH LLP
150 Fourth Ave. North
Suite 1100
Nashville, TN 37219
Tel: 615-664-5355
Email: shane.ramsey@nelsonmullins.com
- and -
Frank B.B. Knowlton, Esq.
NELSON MULLINS RILEY & SCARBOROUGH LLP
1320 Main Street, 17th Floor
Columbia, SC 29201
Telephone: (803) 799-2000
Facsimile: (803) 256-7500
E-mail: Frank.knowlton@nelsonmullins.com
Counsel to the Official Committee of Unsecured Creditors:
Bradford J. Sandler, Esq.
Teddy M. Kapur, Esq.
Pachulski Stang Ziehl & Jones, LLP
919 North Market Street, 17th Floor
Wilmington, DE 19801
Tel: (302) 778-6424
E-mail: bsandler@pszjlaw.com
- and -
Jeffrey P. Bast, Esq.
Bast Amron, LLP
1 SE 3rd Ave., Suite 2410
Miami, FL 33131
Tel: (305) 379-7904
E-mail: jbast@bastamron.com
About Fednat Holding Company
FedNat Holding Co. -- https://www.fednat.com -- is a regional
insurance holding company in Sunrise, Fla., which controls
substantially all aspects of the insurance underwriting,
distribution and claims processes through subsidiaries and
contractual relationships with independent and general agents. It
is not an insurance carrier and does not issue insurance policies.
Rather, FedNat provides agency, underwriting and policy holder
services to its insurance carrier clients. Its business is
comprised of two primary components: underwriting and claims
processing.
FedNat and its affiliates filed petitions for relief under
Chapter11 of the Bankruptcy Code (Bankr. S.D. Fla. Lead Case No.
22-19451) on Dec. 11, 2022. In the petition filed by its manager,
Mark Allen, FedNat reported assets between $10 million and $50
million and liabilities between $100 million and $500 million.
Judge Peter D. Russin oversees the cases.
The Debtors tapped Shane G. Ramsey, Esq., at Nelson Mullins Riley &
Scarborough, LLP as legal counsel and Aprio, LLP as tax preparer.
The U.S. Trustee for Region 21 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases. The
committee tapped Pachulski Stang Ziehl & Jones, LLP as lead
bankruptcy counsel; Bast Amron, LLP as local counsel; and
AlixPartners, LLP as financial advisor.
FRANKLIN ENERGY: Guggenheim SOF Marks $1.5MM Loan at 15% Off
------------------------------------------------------------
Guggenheim Strategic Opportunities Fund has marked its $1,592,250
loan extended to Franklin Energy (KAMC Holdings, Inc.) to market at
$1,352,091 or 85% of the outstanding amount, as of May 31, 2023,
according to Guggenheim SOF'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.
Guggenheim SOF is a participant in a Bank Loan to Franklin Energy
(KAMC Holdings, Inc.). The loan accrues interest at a rate of 9.73%
(6 Month Term SOFR + 4.00%, Rate Floor: 4.00%) per annum. The loan
matures on August 14, 2026.
Guggenheim Strategic Opportunities Fund was organized as a Delaware
statutory trust on November 13, 2006. The Fund is registered as a
diversified, closed-end management investment company under the
Investment Company Act of 1940, as amended.
KAMC Holdings, Inc. was created to facilitate the buyout of
Franklin Energy Services, LLC by ABRY Partners.
GABHALTAIS TEAGHLAIGH: US Trustee Says Plan Not Confirmable
-----------------------------------------------------------
William K. Harrington, the United States Trustee for Region 1,
amends his May 11, 2023 objection to the Disclosure Statement filed
by Gabhaltais Teaghlaigh LLC.
The U.S. Trustee asserts that the Court should deny the Disclosure
Statement, because it does not provide adequate information about
the Debtor's proposed plan of reorganization and the Plan is not
confirmable.
The United States Trustee points out that the Plan is not
confirmable, because it does not comply with 11 U.S.C. Sec.
1129(a)(1):
* The Plan does not comply with Section 1122, because it omits
all unsecured creditors, including Synergy, from any class. Plan at
4-6. The Debtor maintains that they are unimpaired, but only if
they agree to accept 50% of their claims.
* The Plan provides no mechanism or timeline for securing these
creditors' consent. It does not describe a claims objection
procedure should they refuse. 11 U.S.C. Sec. 502(b). Nor does it
offer treatment of any kind for Synergy's claim.
* In so providing, the Plan denies unsecured creditors,
including Synergy, the right to vote to accept or reject the Plan
and to assert their rights under the absolute priority rule, if
they, as a class, were to reject. 11 U.S.C. Secs. 1122, 1126
("acceptance of plan") and 1129(b)(2)(B)(ii) (codifying the
absolute priority rule).
* The Plan does not comply with Section 1123 ("Contents of
plan"), because, other than holders of administrative claims, whom
the Debtor maintains it will pay 30 days following confirmation, it
provides no means of effectuating its purported purpose -- paying
creditors' claims. 11 U.S.C. Sec. 1123(a)(5) (listing 10 possible
mechanisms for satisfying creditors' claims).
The U.S. Trustee further points out that the Plan is not
confirmable, because it contains non-consensual third-party
releases. The Plan is not confirmable, because it impermissibly
releases Dr. Hung from her guaranty liabilities to Enterprise and
Synergy for no consideration and without their express consent.
The U.S. Trustee asserts that the Plan is not confirmable, because
it exempts the Debtor from filing post-confirmation disbursement
reports with the United States Trustee or paying post-confirmation
United States Trustee quarterly fees if the case is reopened.
According to the United States Trustee, the Plan is not
confirmable, because, if unsecured creditors as a class reject, it
will violate the absolute priority rule of 11 U.S.C. Sec.
1129(b)(2)(B)(ii). Assuming that unsecured creditors vote as a
class and reject, the Plan violates the absolute priority rule of
11 U.S.C. Sec. 1129(b)(2)(B)(ii), and it is therefore not
confirmable, because it permits Dr. Hung to retain her 100%
membership interest in the Debtor LLC in exchange for nothing.
The United States Trustee points out that absent additional
information, the Plan may not be confirmable under 11 U.S.C. Sec.
1129(a)(11), because it may not be feasible. According to its most
recent MOR, the Debtor has available cash as of June 30, 2023
totaling approximately $109,230.
The Plan, according to the U.S. Trustee, may not be feasible,
because:
a. it is unclear whether the Debtor's cash as of June 30, 2023
is sufficient to liquidate all of its unclassified unsecured claims
and administrative expenses, including attorneys and Devco's fees,
which are not quantified (Plan at 5);
b. the Debtor's projection includes no management fee; and
c. the Debtor's projected monthly receipts are $2,464 greater
than the Debtor's post-petition, average monthly rent collections.
About Gabhaltais Teaghlaigh
Gabhaltais Teaghlaigh, LLC, is a real estate rental company that
immediately prior to the petition date, owned 6 residential or
commercial properties.
Gabhaltais Teaghlaigh sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Mass. Case No. 22-10839) on June
15, 2022. In the petition filed by Virginia Hung, as member,
Gabaltais Teaghlaigh LLC listed under $50,000 in both assets and
liabilities.
The case is assigned to Judge Christopher J. Panos.
David G. Baker, Esq., at Baker Law Offices, is the Debtor's
counsel.
GERMANIA FARM: A.M. Best Cuts Financial Strength Rating to B(Fair)
------------------------------------------------------------------
AM Best has downgraded the Financial Strength Rating (FSR) to B
(Fair) from A- (Excellent) and the Long-Term Issuer Credit Rating
(Long-Term ICR) to "bb+" (Fair) from "a-" (Excellent) of Germania
Farm Mutual Insurance Association and its subsidiaries: Germania
Fire & Casualty Company, Germania Insurance Company and Germania
Select Insurance Company. Collectively, these companies comprise
Germania Mutual Group (Germania). The outlook of the FSR has been
revised to stable from negative while the outlook of the Long-Term
ICR is negative.
Concurrently, AM Best has downgraded the FSR to B (Fair) from B++
(Good) and the Long-Term ICR to bb+ (Fair) from "bbb+" (Good) of
Germania Property & Casualty Insurance Company (GPC), a wholly
owned subsidiary of Germania Farm Mutual Insurance Association. The
outlook of the FSR is stable and the outlook of the Long-Term ICR
is negative.
Additionally, AM Best has downgraded the FSR to B (Fair) from B++
(Good) and the Long-Term ICR to bb+ (Fair) from "bbb+" (Good) of
Germania Life Insurance Company (Germania Life). The outlook of the
FSR is stable and the outlook of the Long-Term ICR is negative. All
companies are domiciled in Brenham, TX.
The Credit Ratings (ratings) of Germania reflect the group's
balance sheet strength, which AM Best assesses as adequate, as well
as its marginal operating performance, limited business profile and
marginal enterprise risk management (ERM).
The assessments of Germania's the balance sheet strength and
operating performance were revised downward, reflecting significant
erosion in the group's policyholder surplus, weakening balance
sheet metrics and corresponding decline in the group's
risk-adjusted capitalization, as measured by Best's Capital
Adequacy Ratio (BCAR). This followed sizable underwriting losses in
the second quarter of 2023 due to sharply higher-than-normal
catastrophe activity, as well as inflation-driven increases in loss
costs. As a result, operating losses and the group's combined ratio
each reached a historical high as of June 2023 and policyholder
surplus declined by over 50%. Germania's business profile
assessment reflects the group's geographic and product
concentration of primarily residential risks in a catastrophe-prone
state. Furthermore, there is a heightened level of execution risk
as the group undertakes strategic business initiatives to address
the deterioration in its operating performance and balance sheet
strength.
The continuation of the negative outlook on these Long-Term ICRs
reflects AM Best's ongoing concerns with Germania's underwriting
exposures during a season of heightened catastrophe loss activity
and the group's ability to achieve improved operating performance
and meaningfully improved balance sheet strength in the immediate
term. AM Best will continue to review progress on the group's
strategic business initiatives, including pricing and other actions
undertaken, and prospective reinsurance protection and how these
factors may ultimately impact its risk-adjusted capitalization.
Negative rating actions could occur if Germania's strategic
initiatives fail to improve operating performance or if there were
a further decline in the overall balance sheet strength
assessment.
The ratings of GPC reflect its balance sheet strength, which AM
Best assesses as strong, as well as its adequate operating
performance, limited business profile and marginal enterprise risk
management.
The ratings of Germania Life reflect its balance sheet strength,
which AM Best assesses as strong, as well as its marginal operating
performance, limited business profile and marginal enterprise risk
management.
The rating downgrades of GPC and Germania Life were driven by the
negative rating action taken on Germania.
GLOBAL ALLIANCE: Court Confirms Second Amended Plan
---------------------------------------------------
Judge Deborah has entered an order confirming the Second Amended
Chapter 11 Plan of Reorganization of Global Alliance Distributors,
Inc.
A post-confirmation status conference will be held on Dec. 5, 2023
at 11:30 a.m. The Debtor must file a post-confirmation status
report no later than fourteen days prior to the status conference.
The MCA creditors with liens junior to Proventure Capital Funding,
LLC are deemed general unsecured creditors, and any of these MCA
liens are deemed voided pursuant to the Plan for the reasons
discussed extensively in Section IV(C)(1) of the Plan. If the MCA
creditors do not release their respective liens within thirty days
of entry of the Effective Date, the Debtor may file releases
attaching a copy of this Order or take any other action necessary
to obtain the release of such lien.
Counsel for Global Alliance Distributors, Inc.:
Sheila Esmaili, Esq.
LAW OFFICES OF SHEILA ESMAILI
11601 Wilshire Blvd., Suite 500
Los Angeles, CA 90025
Tel: (310) 734-8209
Fax: (877) 738-6220
E-mail: selaw@bankruptcyhelpla.com
Web: www.bankruptcyhelpla.com
About Global Alliance Distributors
Founded in 2010, Global Alliance Distributors Inc. operates a
distribution center for primarily Latino books and magazines to
approximately 250 supermarkets throughout California, Nevada,
Arizona and Florida. It also distributes seasonal items, including,
but not limited to, school supplies, sporting goods and equipment,
snacks and candies. The Company also operates a logistic business
that provides cargo deliveries using independent contractors. Its
logistical clients are two major distribution companies, A&C, which
is currently the largest international magazine distributor in the
world, and Sally Beauty Supplies, a national cosmetics
manufacturer.
Global Alliance Distributors Inc. sought Chapter 11 bankruptcy
protection (Bankr. C.D. Cal. Case No. 22-12552) on May 5, 2022.
In the petition filed by Alberto Fabara, as CEO, Global Alliance
estimated assets between $500,000 and $1 million and estimated
liabilities between $1 million and $10 million. The petition
states that funds will be available to unsecured creditors.
The case is handled by the Hon. Bankruptcy Judge Deborah J.
Saltzman.
Sheila Esmaili, Esq., at the Law Offices of Sheila Esmaili, is the
Debtor's counsel.
GOLDEN HARBOR: Seeks to Tap Law Office of Arnulfo Guerra as Counsel
-------------------------------------------------------------------
Golden Harbor Ventures, LP seeks approval from the U.S. Bankruptcy
Court for the Eastern District of Texas to employ the Law Office of
Arnulfo Guerra as counsel.
The firm will render these services:
(a) represent the Debtor before the court in all matters
arising out of this Chapter 11 bankruptcy case;
(b) assist the Debtor in its efforts to achieve a successful
reorganization of its business; and
(c) assist the Debtor in fulfilling its obligation to its
creditors in an expeditious manner.
The Debtor has promised to pay the firm for its services.
Arnulfo Guerra, Esq., disclosed in a court filing that his firm is
a "disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
Arnulfo Guerra, Esq.
Law Office of Arnulfo Guerra
1111 W. Nolana Ave. Ste. D
McAllen, TX 78504
Telephone: (956) 821-1114
Email: guerralaw@gmail.com
About Golden Harbor Ventures
Golden Harbor Ventures, LP filed a petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. E.D. Texas Case No.
23-40977) on June 5, 2023, with as much as $1 million in both
assets and liabilities. Judge Brenda T. Rhoades oversees the case.
The Law Office of Arnulfo Guerra serves as the Debtor's counsel.
GOLDEN Z LLC: Plan Requires Sale by January 2024
------------------------------------------------
Golden Z, LLC, submitted an Amended Plan of Reorganization.
The Debtor owns the property located at 213 4th Ct. S., #9,
Kirkland, King County, Washington, tax parcel # 082505-9014-03.
The Reorganized Debtor will remain in title to the Property and
shall continue to list the Property for sale. The Property will be
listed for sale though Mr. Belbayev, a licensed real estate agent.
Mr. Belbayev will waive the listing agent's share of commission at
closing. The Property will vest in the Reorganized Debtor upon
confirmation.
The injunction of 11 U.S.C. Sections 1141 and 524(a)(1) shall
remain in effect until January 31, 2024. In the event the Property
is not sold by that date, the injunction shall terminate and
secured creditors may thereafter utilize remedies to collect on
their debt and/or foreclose on their collateral.
On the Effective Date of the Plan the membership interest of the
Reorganized Debtor shall be held by Zhandos Belbayev.
The sale of the Property is expressly contemplated by the Plan and
the Confirmation Order shall so state. Upon sale of the Property,
after payment of costs of sale, administrative expenses and capital
gains tax, the remainder will be paid first to Wilmington in full
satisfaction of its claim and second to 401 State Street Townhomes
Condominium Association in full satisfaction of its claim. On sale
of the Property, all secured creditors will be paid in full. The
sale will be a sale pursuant to a chapter 11 plan and not subject
to excise tax as permitted by WAC 458-61A-207.
Golden Z will continue listing the Property for sale and may adjust
the list price as market conditions warrant. The sale of the
Property shall not require approval of the Court and no order under
11 USC Sec. 363 will be requested unless Golden Z requires an order
of sale free and clear of liens. Golden Z will be permitted to pay
at closing the secured claims against the Property, costs of sale,
escrow fees, the commission due the selling agent, and remit the
balance of the net proceeds to Golden Z.
The sale of the Property may result in a capital gains tax
liability. The Debtor will explore options for a 1031 exchange
which will defer the capital gains tax. If a 1031 exchange cannot
be facilitated timely, the Debtor will pay the capital gains tax
when due.
Class 1 will include all Unsecured Tax Claims of governmental
entities entitled to priority under section 507(a)(2) through
(a)(9) of the Code. Class 1 claims are estimated to aggregate less
than $500. The Class 1 claims will be paid in full by the Effective
Date. Class 1 is not impaired.
Attorney for the Debtor:
James E. Dickmeyer, Esq.
JAMES E. DICKMEYER, PC
520 Kirkland Way Suite 400, P.O. Box 2623
Kirkland, WA 98083-2623
Tel: (425) 889-2324
A copy of the Amended Plan of Reorganization dated August 11, 2023,
is available at bit.ly/45q28pX from PacerMonitor.com.
About Golden Z LLC
Golden Z, LLC, is a single asset real estate (as defined in 11
U.S.C. Section 101(51B)). The company owns a condo or coop located
at 213 4th Ct. S. #9 Kirkland, Wash., valued at $2.4 million.
Golden Z filed a petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. W.D. Wash. Case No. 23-10300) on Feb. 17,
2023, with $1 million to $10 million in both assets and
liabilities. Zhandos Belbayev, authorized representative of the
Debtor, signed the petition.
Judge Timothy W. Dore oversees the case.
The Debtor is represented by James E. Dickmeyer, PC.
GREEN DISTRICT: Files Emergency Bid to Use Cash Collateral
----------------------------------------------------------
Green District Franchisee Parent, Inc. asks the U.S. Bankruptcy
Court for the Western District of Kentucky, Louisville Division,
for authority to use cash collateral on an interim basis in
accordance with the budget, with a 10% variance.
The Debtor requires the use of cash collateral to meet its
postpetition obligations and to pay its expenses, general and
administrative operating expenses, and other necessary costs and
expenses incurred during the pendency of the bankruptcy case.
Able 2 Loan, LLC may claim an interest in cash collateral based on
a security agreement dated February 11, 2020, as amended. The
Debtor is unaware of any other entities claiming an interest in
cash collateral.
In 2022, GDFP sought to expand into new markets and entered into
leases for restaurant locations in Tennessee, Florida, Arizona and
Utah. As the national economy changed due to repeated increases in
the federal prime interest rate, GDFP determined that it could not
profitably continue with its expansion plans and began working to
resolve its obligations to landlords, contractors and other
creditors in connection with restaurants which never opened or
generated revenue. Despite making progress in resolving such
issues, GDFP has unresolved liabilities remaining from its
expansion efforts.
GDFP determined it was necessary to close underperforming
restaurants and has closed numerous locations since May of 2023.
GDFP expects to close two additional locations by the end of August
2023. GDFP has paid all wages and related employment taxes and
benefits arising from the closed locations and has vacated all
previously closed premises.
GDFP is a borrower under a Revolving Loan and Security Agreement
with Able 2 Loan, LLC dated February 11, 2020, pursuant to which
A2L was granted a security interest in substantially all assets of
the GDFP.
As a consequence of its efforts to scale back operations and close
(or not open) underperforming stores, GDFP was named as a defendant
in various legal actions. In early August, 2023 one landlord,
Miramar Centre Associates, II, LLLP obtained a judgment against
GDFP in the amount of $108,715 in the Circuit Court for Broward
County, Florida. MCA caused a garnishment to be issued pursuant to
its judgment which has frozen the funds in the Debtor's operating
account at Chase Bank. Although the Debtor attempted to negotiate
with MCA to release its garnishment, it could not and elected to
seek relief under the Bankruptcy Code to preserve the value of its
business for all creditors and parties in interest.
In consideration of the Cash Collateral Creditor's consent to the
use of the cash collateral by the Debtor and as part of the
adequate protection for any diminution in the value of the Cash
Collateral Creditor's interests in the prepetition collateral,
pursuant to 11 U.S.C. Sections 361 and 363, the Debtor proposes to
grant the Cash Collateral Creditor a replacement lien upon future
receipts and all assets of the Debtor of the same type and
description as the prepetition collateral as of the Petition Date.
The Debtor will continue to account for all cash use, and the
proposed cash use is being incurred to preserve property of the
Estate.
A copy of the motion is available at https://urlcurt.com/u?l=fm22s7
from PacerMonitor.com.
About Green District Franchisee Parent, Inc.
Green District Franchisee Parent, Inc. is a Delaware corporation
with its principal office located at 225 South 5th Street in
Louisville, Kentucky. GDFP operates 9 Green District restaurants in
Kentucky, Indiana, Ohio and Colorado. The Green District
restaurants are a casual fast-food restaurant chain offering food
products focused on salads and healthy fare. GDFP currently employs
approximately 168 employees in its operations. Employees are paid
every two weeks and the Debtor uses a third-party, NextHR
Solutions, to process and pay wages, payroll taxes and any
wage-related withholdings.
Equity interests in GDFP consist of preferred and common shares of
stock. Four individuals own common stock in the company, and CGGD
Franchisee, LP owns all the preferred stock in the company. CGGD
Franchisee, LP is also the holder of a convertible promissory note
from GDFP dated April 15, 2022 in the face amount of
$15,000,000.00. The company's affairs are managed by a board of
directors consisting of both common shareholders and
representatives of the preferred shareholder. Chris Furlow is a
director, owner of common shares, the chief development officer and
designated representative of GDFP.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Kent. Case No. 23-31922) on August 18,
2023.
In the petition signed by Chris Furlow, director, the Debtor
disclosed up to $10 million in assets and up to $50 million in
liabilities.
Judge Joan A Lloyd oversees the case.
Dean A. Langdon, Esq., at Delcotto Law Group, PLLC, represents the
Debtor as legal counsel.
GSS18 LLC: U.S. Trustee Unable to Appoint Committee
---------------------------------------------------
The U.S. Trustee for Region 21, until further notice, will not
appoint an official committee of unsecured creditors in the Chapter
11 case of GSS18, LLC, according to court dockets.
About GSS18 LLC
GSS18, LLC is an owner and landlord of a single residential unit in
Surfside, Fla.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. S.D. Fla. Case No. 23-15358) on July 9,
2023, with $1,500,000 in assets and $4,278,345 in liabilities.
Liora Thause, managing member, signed the petition.
Judge Laurel M. Isicoff oversees the case.
Kevin Christopher Gleason, Esq., at Florida Bankruptcy Group, LLC
is the Debtor's legal counsel.
H2O INVESTMENT: Unsecured to Get Payment After Property Sold
------------------------------------------------------------
H2O Investment Properties, LLC, submitted a First Amended Plan of
Reorganization for Small Business Under Chapter 11, Subchapter V.
Currently, the Debtor owns certain real property and improvements
thereon located at 909 SW Schaeffer Road, West Linn, OR 97068 (the
"West Linn Property") and 30620 SW Rose Lane, Wilsonville, OR 97070
(the "Wilsonville Property"). Substantially all the Debtor's
assets are located at, in, or on the Properties. The Debtor
maintains operations at the Properties.
Under the Plan, Class 16 General Unsecured Creditors are impaired.
Class 16 consists of only 1 creditor: Brilliant Homes LLC. The
amount owed by the Debtor is $350,000. Brilliant Homes LLC is
arguably an insider of the Debtor because Mr. Sapp owns both
entities. Brilliant Homes will (a) have an allowed Class 16 claim
in the amount of $350,000, and (b) receive a distribution in the
full amount of its claims only if, (i) the West Linn Property is
sold, and (ii) all other creditors receive payment in full on their
allowed claims.
Payments required under the Plan will be funded from (i) funds
derived from the sale of the West Linn Property; (ii) the
Wilsonville Loan; and (iii) capital contributions from Mr. Ronald
Sapp. The Debtor will incur no repayment obligations to Mr. Sapp in
exchange for the capital contributions.
Counsel for H2O Investment Properties, LLC:
Michael R. Dal Lago, Esq.
Christian Garrett Haman, Esq.
Jennifer M. Duffy, Esq.
DAL LAGO LAW
999 Vanderbilt Beach Road, Suite 200
Naples, FL 34108
Telephone: (239) 571-6877
E-mail: mike@dallagolaw.com
chaman@dallagolaw.com
jduffy@dallagolaw.com
A copy of the First Amended Plan of Reorganization dated August 11,
2023, is available at bit.ly/3Ox0rjI from PacerMonitor.com.
About H2O Investment Properties
H2O Investment Properties LLC is in the business of purchasing,
improving, and disposing of distressed property. H2O Investment
filed a petition for relief under Subchapter V of Chapter 11 of the
Bankruptcy Code (Bankr. M.D. Fla. Case No. 23-00373) on April 3,
2023.
In the petition filed by Ronald G. Sapp, manager, the Debtor
reported assets and liabilities between $1 million and $10 million.
The petition states that funds will be available to unsecured
creditors. Michael C. Markham has been appointed as Subchapter V
trustee.
Judge Caryl E. Delano oversees the case.
Michael R. Dal Lago, Esq., at Dal Lago Law, serves as the Debtor's
counsel.
HANESBRANDS INC: S&P Downgrades ICR to 'B+', Outlook Negative
-------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on U.S.-based
clothing manufacturer Hanesbrands Inc. to 'B+' from 'BB-'. At the
same time, S&P lowered its issue-level rating on the company's $900
million senior secured term loan B due in 2030 to 'BB' from 'BB+',
with a '1' recovery rating. Also, S&P lowered its ratings on the
company's unsecured notes to 'B+' from 'BB-', with a '4' recovery
rating, indicating its expectation for average recovery (30%-50%,
rounded estimate: 40%).
The negative outlook reflects the possibility of a downgrade due to
its forecast for high leverage over the next 12 months and
expectations for tight covenant cushion.
The downgrade reflects S&P's view that tighter consumer spending
and weakening apparel demand will continue to weigh on
profitability, resulting in leverage staying above 5x over the next
12 months.
S&P said, "Given results for the first half of 2023 and continued
weakness in the consumer environment, we revised our base case
downward and now expect leverage will be elevated over 5x longer
than previously forecasted. The company recently reported
second-quarter results that were below our expectations due to
increasing challenges in the U.S. activewear market and Australia.
Total revenue decreased 4.9% given a double-digit decline in
activewear (includes Champion brand) while S&P Global
Ratings-adjusted EBITDA margin contracted about 470 basis points
(bps) to 10.3%. Specifically, macroeconomic pressures from rising
interest rates and general inflation come at a time of declining
point of sale trends and excess retail inventory levels from
previous supply chain constraints and retailer inventory
realignment. Consequently, credit metrics have increasingly
deteriorated over the past several quarters, with current leverage
at 6.7x as of July 1, 2023, compared with 4.2x last year. In terms
of leverage reduction, the company is on track to repay over $400
million of debt with free operating cash flow (FOCF) and reduce
inventory to about $1.5 billion by the end of the year. Roughly
$100 million of debt has already been repaid year to date, and
inventory units are down by double digits as of the second quarter.
We view the inventory and debt reduction positively given the
immediate benefits to key credit metrics and potential interest
expense savings. Though we believe leverage can improve from
current levels because the company plans to use FOCF to repay debt
and will lap elevated freight and input costs in the second half of
2023, our expectation for lower sales this year will constrain
profitability in the near term. As such, we forecast leverage
elevated above 5x in 2023 and into the first half of 2024."
S&P expects a meaningful turnaround in the Champion brand will take
time as the company focuses on reducing excess inventory and
repaying debt this year.
Global Champion brand sales have sequentially declined in the
high-teens percent area since the start of 2023 given an
industry-wide decline in the activewear category, its pricing
strategy across channels, and its over-reliance on the value
channel in the U.S. Notably, the company has recently brought new
leadership to the brand, removed unproductive product through
stock-keeping unit rationalization, and identified growth
opportunities in U.S. and international distribution. While
Champion remains a driver for long-term growth ($3 billion brand
sales target by 2026), S&P believes it will take time for new
innovations to successfully come to market and for specific brand
challenges to be remedied.
S&P believes management remains committed to achieving its
long-term financial targets, but it acknowledges recent shareholder
activism will heighten scrutiny on the company's near-term
performance.
Since extending its long-term growth plan to 2026 earlier this
year, the company has not made any changes to its $8 billion sales
and 14.4% operating margin targets. Management remains committed to
reducing its leverage to its financial policy target of 2x to 3x
and has committed to using all FOCF for debt repayment. Hanesbrands
also cut its dividend in early 2023, as part of a refinancing and
covenant relief amendment. S&P acknowledges Barington Capital's
recent activist campaign, which will likely heighten scrutiny on
management decisions and could result in changes if it acquires a
meaningful stake in Hanesbrands. Currently, Barington Capital owns
less than 5% of the company's stock.
The negative outlook reflects the possibility of a downgrade due to
S&P's forecast for high leverage over the next 12 months and
expectations for tight covenant cushion.
S&P could lower ratings if Hanesbrands sustained leverage of 5x or
higher. This could occur if:
-- Performance deteriorated and puts pressure on the company's
ability to comply with its net leverage financial covenant.
-- Innerwear sales declined further due to consumers trading down
or the company could not expand the Champion brand globally,
possibly because of lower demand as inflation reduces consumers'
purchasing power or increased competition.
-- Demand decreased substantially due to its brands falling out of
favor and the company continuing to hold onto higher inventory,
leading to sustained negative FOCF.
-- It adopts more aggressive financial policies, including
pursuing a debt-financed acquisition, share buybacks, or dividends
before restoring credit measures to its target.
S&P could also lower the rating if it unfavorably reassessed its
view of the business risk, potentially due to continued declines in
Champion or one of its other major brands falling out of favor due
to operational missteps or changing consumer tastes.
S&P could raise the rating if the company sustained leverage below
5x and achieved 15% cushion on its financial maintenance covenants
through its peak borrowing periods. This could occur if
Hanesbrands:
-- Consistently generated FOCF and applied the proceeds to debt
repayment; and
-- Returned to revenue growth, primarily from increased demand for
Champion.
HANJIN INTERNATIONAL: S&P Upgrades ICR to 'B', Outlook Stable
-------------------------------------------------------------
On Aug. 21, 2023, S&P Global Ratings raised its long-term issuer
credit rating on Hanjin International Corp. (HIC) to 'B' from 'B-'.
At the same time, S&P raised the issue rating on the company's
senior secured first-lien loan to 'BB-'. The recovery rating is
'1'.
S&P said, "The stable outlook reflects our expectation that robust
travel demand will enable HIC to ramp up its hotel operations after
two years of COVID-19-related disruptions. Additionally, we expect
HIC's relationship with its parent KAL to remain unchanged.
"KAL has a strong record of providing ongoing support to HIC. We
expect KAL to continue to provide ongoing financial support to HIC.
Instances of such support include the conversion of a US$606
million intercompany loan to equity and the provision of guarantee
on HIC's term loan B. Other forms of support include deferable
interest on intercompany loans and guarantees on external debt
refinancing. Improvements in KAL's own financial position following
strong performance in 2021 and 2022 further increase the likelihood
of future support.
"The strong likelihood of parental support will have an ongoing
positive influence on HIC's stand-alone credit profile (SACP). As a
result, we have revised upward our assessment of its SACP to 'b-'
from 'ccc+'. Our rating on HIC already gets a one notch uplift from
the SACP to reflect the company's moderately strategic status in
the group."
HIC's key financial metrics will remain weak. The conversion of the
intercompany loan into equity has significantly reduced HIC's
outstanding debt. However, the company is still financially weak,
with debt leverage exceeding 10x, minimal operating cash flow, and
EBITDA coverage interest of less than 1x.
Despite the debt reduction and a likely uptick in EBITDA, HIC's
interest expense burden remains high due to a recent rise in
interest rates. This will limit the company's operating cash flow.
S&P forecasts operating cash flow to be negative US$7 million in
2023 before it turns positive at US$2 million in 2024, compared
with negative US$9 million in 2022.
HIC has significant debt maturities in 2025. The company has a very
significant maturity wall in September 2025, when its US$400
million secured term loan is due. Based on our current financial
forecasts and HIC's business ramp up, the company may not be able
to support the refinancing on its own, particularly if interest
rates remain high. In that scenario, S&P expects KAL to provide the
necessary guarantee for refinancing, and also potentially liquidity
support.
S&P said, "The stable outlook on HIC is based on our expectation of
robust demand for business travel over the next 12-24 months. This
will enable HIC's hotel operations to ramp after nearly two years
of COVID disruptions.
"Separately, we expect KAL's relationship with HIC to stay
unchanged, given the record of support.
"We could downgrade HIC if the company's operational performance
deteriorates significantly, resulting in increased liquidity
pressure. This could stem from a decline in travel, particularly
business related, due to a macroeconomic downturn."
A lowering of the group credit profile would also result in a lower
rating on HIC.
Additionally, S&P could downgrade HIC if the company's relationship
with KAL weakens, resulting in a lower likelihood of support from
the parent. This could arise if it deems that KAL's likelihood of
selling HIC has increased, or if KAL's commitment to HIC has
weakened.
An upgrade would require a substantial improvement in HIC's
operating performance, along with an upward revision of the group
credit profile. It will need the company to fully ramp up and then
maintain strong operating performance, such that debt leverage
falls to below 5x and a cash flow and liquidity buffer is built.
HIC's strong operating performance could stem from: (1) a strong
increase in average daily rates (ADR) due to pent-up travel demand
coupled with disciplined cost management in the hotel segment; and
(2) high occupancy rates and favorable rent trends in the office
segment.
Social factors are a negative consideration in our credit rating
analysis of HIC. The company's asset concentration exposes it to
health and safety concerns: Its only asset is a hotel/office
complex in Los Angeles. COVID-19 has had a big impact on its hotel
operations, causing occupancy rates to be much lower than S&P
expected.
-- S&P's simulated default scenario contemplates a default
occurring in 2026 due to a prolonged and deep global recession.
This would entail a steep decline in travel, room rates, and hotel
occupancy. Under this scenario, HIC's cash flow could decline to a
point where it would no longer be able to meet fixed charges.
-- S&P assumes HIC could sell WGC to other investors in a
distressed scenario.
-- WGC is a non-stabilized property and is valued on a discount to
market value.
-- S&P uses the company's latest appraisal value of about US$1
billion to arrive at the collateral value as the starting point for
our discount to market value valuation.
-- S&P assumes a discount of 50% for the property. This is to
reflect buyers' likely requirement for a discount to assume risks
from a non-stabilized property and marketing and lease-up costs
needed to stabilize the property.
-- S&P's net enterprise value for WGC after property-level
expenses and bankruptcy administrative expenses is about US$451
million.
-- Simulated year of default: 2026
-- Reference market value: US$1 billion
-- Realization rate: 50%
-- Gross property value: US$500 million
-- Jurisdiction: U.S.
-- All debts have about six months' interest outstanding at the
point of default.
-- Net enterprise value (after 5% property-level expenses and 5%
bankruptcy administrative expenses): US$451 million.
-- Secured first-lien debt: US$413 million
-- Recovery expectations: 90%-100%, rounded estimate of 100%
Note: All debt amounts include six months of prepetition interest.
HDRMP LLC: Gets OK to Hire Harrison Law as Special Counsel
----------------------------------------------------------
HDRMP, LLC received approval from the U.S. Bankruptcy Court for the
Northern District of Georgia to employ Harrison Law, LLC as its
special counsel.
The Debtor requires a special counsel to assist with zoning and
land use matters and real estate contracts regarding its real
property, which is part of a planned unit development.
The firm will charge an hourly fee of $300 plus reimbursement of
expenses incurred.
Victor Harrison, Esq., an attorney at Harrison Law, disclosed in a
court filing that his firm is a "disinterested person" as that term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Victor J. Harrison, Esq.
Harrison Law, LLC
P.O. Box 1495
Douglasville, GA 30133
Telephone: (770) 942-4758
Email: victorharrison@westgalaw.com
About HDRMP LLC
HDRMP, LLC is a single asset real estate (as defined in 11 U.S.C.
Section 101(51B)). The company is based in Villa Rica, Ga.
HDRMP filed its voluntary petition for relief under Chapter 11 of
the Bankruptcy Code (Bankr. N.D. Ga. Case No. 23-10775) on June 30,
2023, with $1 million to $10 million in both assets and
liabilities. James W. Davis, III, manager, signed the petition.
Judge Paul Baisier oversees the case.
The Debtor tapped Leslie Pineyro, Esq., at Jones & Walden, LLC as
bankruptcy counsel and Victor J. Harrison, Esq., at Harrison Law,
LLC as special counsel.
HEART O'GOLD: Taps Phillips as Accountant and Financial Advisor
---------------------------------------------------------------
Heart O'Gold Home Care, LLC seeks approval from the U.S. Bankruptcy
Court for the Northern District of Ohio to employ The Phillips
Organization as accountant and financial advisor.
The firm will render these services:
(a) assist the Debtor in fulfilling its duties;
(b) provide general accounting services; and
(c) assist the Debtor by providing financial analyses
necessary for its plan of reorganization, disclosure statement,
sale of any assets, or other transaction related to its
reorganization.
The hourly rates of the firm's professionals are as follows:
Russell Phillips, Jr., Managing Partner $260
Partner $225
Staff $70 - $160
Russell Phillips, Jr., a certified public accountant at Phillips
Organization, disclosed in a court filing that the firm is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
Russell Phillips, Jr., CPA, CVA, MAFF
The Phillips Organization
3924 Cleveland Avenue NW
Canton, OH 44709
Telephone: (330) 493-3928
Facsimile: (330) 493-7657
Email: shelby@phillipsorg.com
About Heart O'Gold Home Care
Heart O'Gold Home Care, LLC sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. N.D. Ohio Case No. 23-60917) on
Aug. 2, 2023, with as much as $1 million in both assets and
liabilities.
Judge Tiiara N.A. Patton oversees the case.
The Debtor tapped Anthony J. DeGirolamo as its legal counsel and
The Phillips Organization as accountant and financial advisor.
JONATHAN RON: Seeks to Hire Levine & Associates as Accountant
-------------------------------------------------------------
Jonathan Ron Inc. seeks approval from the U.S. Bankruptcy Court for
the District of New Jersey to employ Levine & Associates as
accountant.
The Debtor requires an accountant to review financial data; assist
in the preparation of projections, monthly operating reports, and
tax returns; and comply in all aspects with the State of New Jersey
audit.
The firm will charge $250 per hour for its services.
As disclosed in court filings, Levine & Associates is a
"disinterested person" pursuant to Section 101(14) of the
Bankruptcy Code.
The firm can be reached at:
Levine & Associates
135 Rockaway Turnpike, Suite 111
Lawrence, NY 11559
Telephone: (516) 666-8880
Facsimile: (718) 887-9857
Email: josh@levineandassoc.com
About Jonathan Ron
Jonathan Ron Inc., doing business as Jonathan Ron Liquors or JR's
Bev. Co., is a wine and spirit shop in Wall, N.J.
Jonathan Ron filed a petition for relief under Subchapter V of
Chapter 11 of the Bankruptcy Code (Bankr. D.N.J. Case No. 23-12418)
on March 24, 2023, with total assets of $5,196,587 and total
liabilities of $1,151,045. Douglas S. Stanger has been appointed as
Subchapter V trustee.
Judge Kathryn C. Ferguson oversees the case.
The Debtor tapped Eugene D. Roth, Esq., at the Law Office of Eugene
D. Roth, as counsel and Levine & Associates as accountant.
KEMPER CORP: Fitch Lowers Jr. Subordinated Debt Rating to BB
------------------------------------------------------------
Fitch Ratings has downgraded the Insurer Financial Strength (IFS)
ratings for Kemper Corporation's (Kemper) property and casualty
(P/C) lead operating subsidiary, Trinity Universal Insurance
Company (Trinity) to 'A-' (Strong) from 'A'.
Fitch has also downgraded the ratings for Kemper's holding company,
including the Issuer Default Rating (IDR) to 'BBB' from 'BBB+' and
the senior debt ratings to 'BBB-' from 'BBB'. The Rating Outlooks
for Trinity and Kemper's IDRs are Stable. Fitch has also affirmed
the ratings of Kemper's life insurance subsidiaries with a Stable
Outlook.
The downgrades for Trinity and Kemper's holding company ratings
primarily reflect continued underwriting weakness through 1H23 and
deterioration in P/C capitalization, compared with rating
sensitivities.
KEY RATING DRIVERS
Underwriting Results: Kemper Corporation's underwriting results
remained above rating sensitivities through 1H23, largely as the
result of a continuation of heightened loss trends in both the
Kemper Auto (nonstandard personal and commercial auto) and Personal
Insurance (preferred auto and homeowners) segments, higher
catastrophe losses and adverse prior-year reserve development. The
Kemper Auto and Kemper Personal Insurance segments reported GAAP
combined ratios remained elevated at 109% and 115%, respectively,
for 1H23.
The company has addressed underwriting performance with targeted
rate increases as well as non-rate actions over the last several
quarters. Fitch expects approved rate increases will serve to limit
further deterioration in underwriting results and help the
company's efforts to return to underwriting profitability over
time.
Company Profile: Kemper is a mid-tier P/C underwriter, ranked as
the 12th-largest personal auto writer based on 2022 direct premiums
written, with a strong market presence in nonstandard auto
insurance. Kemper maintains competitive advantages in nonstandard
auto business, but has faced profitability challenges in recent
quarters. The company's strategic review of its personal insurance
business led to a planned run-off of the segment, which could have
a modest near-term impact on the company's scale and performance
volatility related to property exposure.
Capitalization: Fitch's Prism capital model for the P/C group
scored at the high end of 'Somewhat Weak' in 2022. Statutory
capital levels reflected net losses in 2022 and 1H23, offset by
capital contributions from the parent. Overall enterprise capital
benefits from capital diversity provided by the company's life
operations, which scored at the Extremely Strong level. Fitch
expects that Kemper will maintain strong overall capital levels and
flexibility to contribute capital to operating subsidiaries from
the holding company when prudent.
Financial leverage remained elevated at 30.5% at June 30, 2023, in
excess of the company's stated target range of 17%-22% and the
rating sensitivity of 28%. Excluding the favorable impact to
accumulated other comprehensive income of $194 million from the
adoption of long-duration contracts accounting standards, financial
leverage was 31.9%. Kemper has earmarked $150 million for debt
paydown, which is expected to moderately improve pro forma
leverage.
Coverage and Financial Flexibility: GAAP fixed-charge coverage was
negative 5.0x through 1H23, excluding the goodwill impairment on
the personal segment, compared with negative 4.3x in 2022,
primarily driven by underwriting losses in the period. Average
coverage in the three years prior (2019-2021) was 5.6x. Kemper's
ability to return to producing high-single-digit to low-double
digit coverage will hinge on a return to favorable underwriting
profitability. Financial flexibility and liquidity remain strong
with holding company cash and invested assets of $220 million at
June 30, 2023.
Life/Health Segment: Ratings of Kemper's life/health segment,
United Insurance Company of America and its subsidiaries, reflect
stable underlying earnings and an effective niche in the
slow-growth home service market. The group has been a steady source
of earnings for Kemper, with dividend capacity to support parent
objectives, with capital and earnings diversification provided to
the enterprise. Fitch considers the life/health subsidiaries to be
'Important' in the group rating approach, with subsidiary ratings
reflecting the life segment standalone assessment.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade for Trinity Universal Insurance Co. and
Kemper's Holding Company
-- Returning to consistent underwriting profitability;
-- Capital adequacy viewed as 'Strong' or better;
-- Financial leverage returning to low-20% range;
-- Fixed-charge coverage returning to high single digits or
better.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade for United Insurance Co. and Its
Subsidiaries
-- Growth across the life/health operations with increased
penetration in its market niche;
-- Sustained ROEs above 8%;
-- An improved asset/liability management (ALM) mismatch to
within three years or less.
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade for Trinity Universal Insurance Co. and
Kemper's Holding Company
-- Combined ratios consistently above 105%;
-- Financial leverage sustained above 32%;
-- Capital adequacy maintained below 'Adequate';
-- Fixed-charge coverage consistently below 5x.
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade for the United Insurance Co. and Its
Subsidiaries
-- Deterioration in Kemper's life/health capitalization metrics,
measured by a Prism capital model outcome below 'Extremely
Strong';
-- Consistent degradation in financial performance caused by
outsized investment losses or poor underwriting performance,
measured by a return on total capital below 10% and an ROA
below 1%;
-- Widening of the ALM mismatch, coupled with deterioration in
cash flow testing results.
ESG CONSIDERATIONS
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
ENTITY / DEBT RATING PRIOR
------------- ------ -----
Union National Life
Insurance Company LT IFS A- Affirmed A-
Kemper Corporation LT IDR BBB Downgrade BBB+
senior unsecured LT BBB- Downgrade BBB
junior subordinated LT BB Downgrade BB+
United Insurance
Company of America LT IFS A- Affirmed A-
Trinity Universal
Insurance Company LT IFS A- Downgrade A
The Reliable Life
Insurance Company LT IFS A- Affirmed A-
KRONOS WORLDWIDE: S&P Downgrades ICR to 'CCC+', Outlook Negative
----------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Kronos
Worldwide Inc. to 'CCC+' from 'B'. The outlook is negative. At the
same time, S&P lowered the issue-level rating on Kronos' senior
secured notes to 'B' from 'BB-'. The recovery rating remains '1'
(rounded estimate: 90%).
The negative outlook reflects S&P's view that weak global
macroeconomic demand will continue to persist, and Kronos' metrics
will remain elevated over the next 12 months.
S&P said, "The downgrade reflects our expectation for continued
weakness in Kronos' operating performance in 2023. Following
Kronos' weak operating results in late 2022 and early 2023 we
anticipated performance to improve, however, we now believe this
will not occur and results are unlikely to recover in the near
term. Furthermore, we expect continued weakness during the second
half of 2023 due to ongoing weak global demand and soft volumes in
combination with downward pricing pressure in the market. Over the
past three quarters Kronos has generated approximately $0 million
in adjusted EBITDA, the anticipated turnaround as destocking begins
to subside and raw material costs start to come down has not
materialized. The company's underperformance continues to be driven
by a combination of lower sales volumes and higher production
costs, primarily elevated raw material and energy costs. We now
anticipate its leverage will remain elevated over the next year. In
the absence of large, debt-funded acquisitions, we project S&P
Global Ratings-adjusted debt to EBITDA of 16x-18x over the next 12
months."
Kronos' performance continues to be severely constrained by reduced
TiO2 demand across all major end markets. S&P Global
Ratings-adjusted EBITDA significantly declined due to lower sales
volumes in all the company's markets and slightly lower average
TiO2 selling prices. Furthermore, Kronos' recent operations were
hampered by unabsorbed fixed production and other manufacturing
costs associated with production curtailments at facilities as TiO2
production volumes were lowered to align inventory levels with
decreased demand. S&P said, "However, we believe Kronos sales
volumes will gradually improve, although at a slower pace than we
initially expected, as demand in China and Europe recovers.
Moreover, Kronos' significant liquidity position, with about $170
million in cash and cash equivalents and an undrawn revolver with a
$225 million borrowing base, helps protect the company from further
volatility. Even though we anticipate demand to begin to recover
and costs to moderate in 2024, we still expect 2023 demand across
the globe and credit metrics to remain soft."
S&P also considers Kronos' operations within its larger group under
parent Valhi Inc. The group's financials and credit metrics are
correlated with those of Kronos because it accounts for more than
80% of Valhi Inc.'s earnings and revenue.
S&P's assessment of Kronos' business risk profile reflects its
position as a large global producer in the highly cyclical,
commodity based TiO2 market. TiO2 is a commodity chemical that
provides whiteness and opacity to a variety of products, especially
paints and coatings, as well as plastics, paper, and food products.
Rapid swings in end-market demand and raw material input costs
(primarily high-grade feedstock costs) limit the importance of
competitive advantages in this industry. However, Kronos'
dependence on third-party sources to meet much of its chloride
process (CP) feedstock requirements, unlike peers such as Tronox
Inc. that source their own feedstock, heightens its susceptibility
to price swings and has led to profit volatility in recent years.
S&P said, "The negative outlook on Kronos reflects our expectation
that its credit measures and those of parent Valhi Inc. will be
weak over the next 12 months. Our base-case scenario assumes the
global demand will remain weak in the second half of 2023 before
beginning to recover in 2024. Our rating assessment continues to
reflect our expectation for high volatility in the company's credit
measures. We expect Kronos will maintain adequate liquidity and
that management will maintain a prudent approach to funding growth
and returns to shareholders.
"We could lower our rating on Kronos during the next 12 months if
Kronos undergoes a restructuring or engages in a debt exchange that
we view as distressed. We could also lower the ratings if liquidity
weakens such that we believe Kronos is unable to cover its
financial obligations.
"We could revise our outlook to positive on Kronos within the next
year if the group's performance improves and the company's second
half 2023 earnings outperform our expectations. Under this
scenario, we would expect weighted average funds from operations
(FFO) to debt at Valhi in the mid- to high-single-digit percent
area even after factoring in potential downturns in its pricing and
demand. We believe an approximately 200 basis points (bps)
improvement in its EBITDA margins relative to our expectations
would enable it to sustain credit measures at those levels and
generate sufficient earnings to account for potential volatility.
However, we would also expect management to commit to financial
policies that would enable it to maintain these improved credit
measures before raising our rating."
Environmental, social, and governance factors are a moderately
negative consideration in our credit rating analysis of Kronos. The
company's production of a commodity product and subject to scrutiny
and regulations related to carbon dioxide emissions, waste, and
pollution. The company, like peers, has to deal with a recent
classification of its key product as a category 2 carcinogen under
certain conditions. For example, in the EU, a situation could lead
to customer scrutiny and result potentially in some constraints on
future growth.
S&P's view on governance includes the company's controlling
ownership by Valhi, which could potentially result in corporate
decision making that prioritizes the interest of the controlling
owner.
LENDMARK: Fitch Affirms 'B' LongTerm IDR & Alters Outlook to Neg.
-----------------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Issuer Default Rating
(IDR) of LFS Topco, LLC (Lendmark) at 'B'. The Rating Outlook has
been revised to Negative from Stable. Fitch also affirmed the
senior unsecured debt rating at 'B', with a Recovery Rating of
'RR4'.
KEY RATING DRIVERS
The Outlook revision reflects the expectation for weaker credit
performance to continue, which will pressure earnings and elevates
the risk of deterioration in capitalization ratios. Profit margins
have come down significantly in recent quarters, and modest
increases in delinquencies and losses from current levels could
quickly erode tangible equity.
The rating affirmation reflects Lendmark's modest but growing
market position in the U.S. personal installment lending industry,
solid risk-adjusted yields, and manageable credit performance to
date. The ratings are constrained by Lendmark's monoline business
model, elevated leverage, higher risk appetite and subprime
exposure, and its partial private equity ownership, which increases
the possibility of shareholder-friendly actions and adds long-term
strategic uncertainty.
Lendmark has continued to grow its franchise primarily through de
novo branch openings, increasing the number of branches by 65 in
2022 and adding an additional 12 in the first quarter of 2023,
bringing the total to 513 branches across 21 states as of March 31,
2023. The company has also maintained its direct auto purchase
offering and indirect sales finance at 21% and 6% of receivables,
respectively, consistent with 1Q22, but up meaningfully from 2017.
Fitch views the enhanced product diversification and presence of
secured auto collateral favorably as they reduce the overall risk
profile of the portfolio.
Asset performance has weakened in recent quarters, with 30+ day
delinquencies rising rapidly in the second half of 2022 and
exceeding pre-COVID levels, at 6.9% at YE 2022. This compares to
4.3% at YE 2021 and an average of 6.0% from YE 2017-YE 2019.
Delinquencies improved modestly in 1Q23, to 6.6%, and securitized
collateral improved further in 2Q23, according to data from Intex.
Net charge-offs rose to 9.9% in 1Q23 (annualized), compared to 6.3%
one year earlier. While Fitch believes performance at the current
level is manageable, unemployment remains near its lowest point in
50 years, and Lendmark's customer base, which is already challenged
by high inflation, is likely to be particularly vulnerable to
economic stresses.
Profitability, as measured by pre-tax return on average assets
(ROAA), was 1.5% on an annualized basis for 1Q23; down from 3.8% in
1Q22 and a four-year average of 2.6% from 2019-2022. This was
driven by increased loss provisioning expense due to higher
charge-offs and revised expectations for credit performance. Given
the relatively high fixed costs of the branch-based model, further
increases in provisioning expense or muted origination growth given
the challenging credit environment could lead to operating losses
in the near term.
Lendmark's leverage (debt/tangible equity) is considered a primary
rating constraint. Leverage was 15.6x as of end-1Q23, which Fitch
views as high, given the risk profile of the portfolio. This metric
corresponds to Fitch's 'b' category quantitative benchmark range of
7x-20x for balance sheet-heavy finance and leasing companies with a
sector risk operating environment score in the 'bbb' category.
Adoption of CECL in 1Q23 raised GAAP leverage significantly
compared to YE 2022 (8.5x), although Fitch notes that capital to
absorb credit losses is still present via the higher loss reserve.
Still, leverage has also increased compared to a year earlier (7.7x
at 1Q22) due weaker credit performance driving higher reserve
requirements unrelated to CECL.
Lendmark's funding profile is largely secured, which, despite being
nonrecourse, Fitch views less favorably due to the encumbrance of
assets and limited financial flexibility during periods of stress.
The company's proportion of unsecured debt is 11%, driven by its
sole senior unsecured issuance in 2021, which is within Fitch's
'bb' category quantitative benchmark range of 10% to 40%. Fitch
would view further increases in funding diversification and
unencumbered assets as incrementally positive, but does not expect
the mix to improve in the short term given market conditions.
Fitch views Lendmark's cash liquidity of $25 million at 1Q23 as
sufficient to support its operations and near-term funding
obligations, with the unsecured notes not maturing until 2026 and
the outstanding ABS still in their three- to five-year revolving
periods. Additionally, the company had approximately $287 million
of unencumbered receivables at 1Q23, which could be borrowed
against with undrawn warehouse capacity.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
-- Sustained deterioration in credit performance above Lendmark's
net charge-off target range of 7.5%-8.5%;
-- Inability to reduce leverage to 15x or below given the risk
profile of the business;
-- Sustained decline in ROAA below 1%;
-- Inability to access term funding for a prolonged period of 12
months-24 months; and/or
-- The imposition of new and more onerous regulations that
negatively impact Lendmark's ability to execute on its business
model.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
-- A sustained decline in leverage below 14x (unadjusted for CECL)
and/or reduction in delinquencies below 6% could result in the
Outlook being revised to Stable.
Beyond that, positive rating momentum could develop from the
following:
-- A sustained decline in leverage below 10x;
-- An increase in the proportion of unsecured funding to at least
20% of total debt;
-- Continued maintenance of charge-offs within management's target
range through credit cycles; and/or
-- Further diversification of the business model either through
product offering or geographical expansion.
DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS
The senior unsecured debt rating is equalized with the Long-Term
IDR, reflecting Fitch's expectation of average recovery prospects
in a stress scenario.
DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES
The unsecured debt rating is expected to move in tandem with the
IDR, but a meaningful decline in unencumbered assets could result
in the unsecured debt rating being notched down from the IDR.
ADJUSTMENTS
The Business Profile has been assigned below the implied score due
to the following adjustment reason(s): Business model (negative),
Market position (negative).
The Asset Quality has been assigned below the implied score due to
the following adjustment reason(s): Risk profile and business model
(negative).
The Earnings & Profitability has been assigned below the implied
score due to the following adjustment reason(s): Portfolio risk
(negative).
The Funding, Liquidity & Coverage has been assigned below the
implied score due to the following adjustment reason(s): Funding
flexibility (negative).
ESG CONSIDERATIONS
LFS TopCo, LLC has an ESG Relevance Score of '4' for Customer
Welfare - Fair Messaging, Privacy & Data Security due to the
importance of fair collection practices and consumer interactions
and the regulatory focus on them, which has a negative impact on
the credit profile, and is relevant to the ratings in conjunctions
with other factors.
LFS TopCo, LLC has an ESG Relevance Score of '4' for Governance
Structure due to due to the presence of private equity ownership,
which has a negative impact on the credit profile, and is relevant
to the ratings in conjunction with other factors.
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
LINDEN AUTO: Case Summary & Six Unsecured Creditors
---------------------------------------------------
Debtor: Linden Auto Spa, LLC
1066 East Elizabeth Avenue
Elizabeth, NJ 07208
Chapter 11 Petition Date: August 22, 2023
Court: United States Bankruptcy Court
District of New Jersey
Case No.: 23-17265
Debtor's Counsel: Justin M Gillman, Esq.
GILLMAN, BRUTON & CAPONE, LLC
770 Amboy Avenue
Edison NJ 08837
Tel: (732) 661-1664
Fax: (732) 661-1707
Email: jgillman@gbclawgroup.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Andrew A. Montoya as managing member.
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/2QAMMNI/Linden_Auto_Spa_LLC__njbke-23-17265__0001.0.pdf?mcid=tGE4TAMA
LIVIE & LUCA: Files Emergency Bid to Use Cash Collateral
--------------------------------------------------------
Livie and Luca LLC asks the U.S. Bankruptcy Court for the Northern
District of California, Oakland Division, for authority to use cash
collateral in accordance with the budget, with a 10% variance.
The Debtor requires the use of cash collateral to manage the
administration of the Chapter 11 Case and support of the continuity
of the Debtor's operations.
Heritage Bank of Commerce, Small Business Administration, and
Bedabox dba ShipMonk assert an interest in the Debtor's cash
collateral.
The Debtor has two consensual secured debts. The first is to
Heritage pursuant to a loan from 2018. The loan has been gradually
paid down and the current balance is approximately $262,252.
Heritage has a blanket lien on the Debtor's assets pursuant to the
relevant loan documents and a UCC-1 recorded with the California
Secretary of State on June 8, 2018. Up to the month of filing the
case, the Debtor was current on its debt to Heritage. The second
secured debt is owed to the SBA pursuant to an EIDL loan provided
in 2022 as part of the Covid-19 pandemic relief programs. The SBA
has a blanket lien on the Debtor's assets pursuant to the relevant
loan documents and a UCC-1 recorded with the California Secretary
of State on June 28, 2020. The SBA is owed approximately $498,000.
In addition to the security interests of Heritage and the SBA,
ShipMonk contends it has a lien against the Debtor's inventory
equivalent to a warehouse lien under its contract with the Debtor
and Florida law. While the Debtor disputes ShipMonk's lien, asserts
claims against ShipMonk for damage to the Debtor's business, and
contends that any lien is junior to Heritage and the SBA, pursuant
to the Motion, ShipMonk's lien will retain the same validity and
priority it had pre-petition.
The Debtor requests access to and use of the cash collateral until
the earliest of: (i) the substantial consummation of a plan of
reorganization filed in the Chapter 11 Case that is confirmed
pursuant to an order entered by the Court; and (ii) the date the
Court orders the conversion of the Chapter 11 Case to a case under
Chapter 7 of the Bankruptcy Code or the dismissal of the Chapter 11
Case or the appointment of a trustee or examiner with expanded
power in the Chapter 11 Case.
The Debtor proposes post-petition replacement liens, in the same
amounts and priority as the Secured Parties' existing rights in the
cash collateral, as adequate protection for the Secured Parties'
interest in the existing cash collateral. The Debtor intends to
resume making monthly payments to Heritage Bank of Commerce of
$6,000 in October 2023, which payments represent approximately 52%
of the contractual monthly payment, pursuant to the loan between
the Debtor and Heritage. The Debtor also intends to resume making
the required monthly payments to the SBA of $2,500 in January
2024.
A copy of the motion is available at https://urlcurt.com/u?l=2cMBMC
from PacerMonitor.com.
About Livie and Luca LLC
Livie and Luca LLC is a California limited liability company. It is
an online retailer of children's footwear company. The Debtor was
founded in 2007 on the principles of empowerment, creativity, and
community involvement. The Debtor developed a customer-centered
design process that has helped it achieve a customer retention rate
of 59%.
The Debtor is headquartered in Oakland, California, though its
inventory is manufactured overseas. The Debtor sells its shoes via
its own website (www.livieandluca.com) and via other online retail
channels such as Amazon and Shopify. The inventory is located in
the United States and the Debtor contracts with third-party
logistics providers to store its inventory, ship its orders and
handle any returns. When goods are sold through the Amazon or
Shopify channels, those companies receive payment for the shoes
directly from the customers and then forward payment to the Debtor
after deducting amounts due from the Debtor to the particular
retail channel.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Cal. Case No. 23-40991) on August 10,
2023. In the petition signed by Mitzi Rivas, chief executive
officer, the Debtor disclosed up to $10 million in both assets and
liabilities.
Stephen D. Finestone, Esq., at Finestone Hayes LLP, represents the
Debtor as legal counsel.
LORDSTOWN MOTORS: Committee Seeks to Tap Huron as Financial Advisor
-------------------------------------------------------------------
The official committee of unsecured creditors appointed in the
Chapter 11 cases of Lordstown Motors Corp. and its affiliates seeks
approval from the U.S. Bankruptcy Court for the District of
Delaware to employ Huron Consulting Group, Inc.
The committee requires a financial advisor to:
(a) analyze any proposed debtor-in-possession financing or use
of cash collateral;
(b) monitor the Debtors' short-term cash flow, liquidity and
operating results;
(c) review financial-related disclosures of the Debtors;
(d) review other financial information prepared by the
Debtors;
(e) review any key employee retention and other employee
benefit programs that may be proposed by the Debtors;
(f) review the Debtors' analysis with respect to the
assumption or rejection of various executory contracts and leases;
(g) review the claims reconciliation and estimation process;
(h) attend meetings and assist in discussions with the
Debtors, the committee, the U.S. trustee, and any party involved in
the Debtors' Chapter 11 cases;
(i) assist the committee in the evaluation and analysis of
potential avoidance actions;
(j) assist the committee in its assessment of restructuring
alternatives and estimated recoveries; and
(k) provide advice with respect to any tax issues associated
with, but not limited to, claims/stock trading, preservation of net
operating losses, refunds due to the Debtors, plans of
reorganization, and asset sales;
(l) as requested, testify as either a "fact or percipient
witness" or an "expert witness" in the company's bankruptcy court
proceedings based on Huron's direct knowledge of the estate arising
from or relating to the services performed; and
(m) render other general business consulting services.
The hourly rates charged by Huron Consulting Group are as follows:
Managing Director $975 - $1,315
Senior Director $950 - $950
Director $700 - $800
Manager $600 - $600
Associate $500 - $500
Analyst $325 - $500
In addition, the firm will seek reimbursement for expenses
incurred.
Laura Marcero, Esq., a managing director at Huron Consulting Group,
disclosed in a court filing that her firm is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Laura Marcero
Huron Consulting Group Inc.
550 W. Van Buren
Chicago, IL 60607
Telephone: (248) 244-2410
About Lordstown Motors Corp.
Lordstown Motors Corp. -- http://www.lordstownmotors.com/-- is an
electric vehicle OEM developing innovative light duty commercial
fleet vehicles, with the Endurance all electric pickup truck as its
first vehicle. It has engineering, research and development
facilities in Farmington Hills, Mich. and Irvine, Calif.
On June 27, 2023, Lordstown Motors Corp. and two affiliated debtors
filed voluntary petitions for relief under Chapter 11 of the
Bankruptcy Code (Bankr. D. Del. Lead Case No. 23-10831). The cases
are pending before Judge Mary F. Walrath.
The Debtors tapped White & Case, LLP and Richards, Layton & Finger,
P.A. as bankruptcy counsels; Baker & Hostetler, LLP as special
counsel; Jefferies, LLC as investment banker; KPMG, LLP as auditor;
and Silverman Consulting as restructuring advisor. Kurtzman Carson
Consultants, LLC is the Debtors' claims and noticing agent and
administrative advisor.
The U.S. Trustee for Regions 3 and 9 appointed an official
committee to represent unsecured creditors in the Debtors' Chapter
11 cases. The committee tapped Troutman Pepper Hamilton Sanders,
LLP as legal counsel and Huron Consulting Group Inc. as financial
advisor.
LORDSTOWN MOTORS: Committee Seeks to Tap Troutman as Legal Counsel
------------------------------------------------------------------
The official committee of unsecured creditors appointed in the
Chapter 11 cases of Lordstown Motors Corp. and its affiliates seeks
approval from the U.S. Bankruptcy Court for the District of
Delaware to employ Troutman Pepper Hamilton Sanders, LLP.
The committee requires legal counsel to:
(a) give advice with respect to the rights, duties and powers
of the committee in the Debtors' bankruptcy cases;
(b) assist and advise the committee in its consultations with
the Debtors relating to the administration of these cases;
(c) assist the committee in analyzing the claims of the
Debtors' creditors and their capital structure and in negotiating
with the holders of claims and, if appropriate, equity interests;
(d) assist the committee's investigation of the acts, conduct,
assets, liabilities and financial condition of the Debtors and
other parties involved with them, and the operation of their
businesses;
(e) assist the committee in its analysis of, and negotiations
with the Debtors or any other third parties concerning matters
related to, among other things, the assumption or rejection of
certain leases of non-residential real property and executory
contracts, asset dispositions, financing transactions and the terms
of a plan of reorganization or liquidation for the Debtors;
(f) assist and advise the committee as to its communications,
if any, to the general creditor body regarding significant matters
in this case;
(g) represent the committee at all hearings and other
proceedings;
(h) review, analyze, and advise the Committee with respect to
applications, orders, statements of operations and schedules filed
with the court;
(i) assist the committee in preparing pleadings and
applications as may be necessary in furtherance of its interests
and objectives; and
(j) perform such other services as may be required and which
are deemed to be in the interests of the committee in accordance
with its powers and duties as set forth in the bankruptcy code.
The hourly rates of the firm's counsel and staff are as follows:
Partners and Counsel $740 - $1,680
Associates $530 - $850
Paraprofessionals $150 - $440
In addition, the firm will seek reimbursement for expenses
incurred.
Deborah Kovsky-Apap, Esq., a partner at Troutman, provided the
following in response to the request for additional information set
forth in Paragraph D.1 of the Fee Guidelines.
Question: Did you agree to any variations from, or alternatives
to, your standard or customary billing arrangements for this
engagement?
Response: Troutman did not agree to a variation of its standard
or customary billing arrangement for this engagement. Nonetheless,
Troutman did agree to provide the committee with a discount of any
fees in excess of a $750 per hour blended rate, subject to
recoupment in some circumstances.
Question: Do any of the professionals included in this engagement
vary their rate based on the geographic location of the bankruptcy
case?
Response: None of the professionals included in this engagement
have varied their rate based on the geographic location of these
Chapter 11 cases.
Question: If you represented the client in the 12 months
prepetition, disclose your billing rates and material financial
terms for the prepetition engagement, including any adjustments or
discounts offered during the 12 months prepetition. If your billing
rates and material financial terms have changed post-petition,
explain the difference and the reasons for the difference.
Response: Troutman did not represent the committee in the 12
months prepetition.
Question: Has your client approved your prospective budget and
staffing plan, and, if so, for what budget period?
Response: Troutman and the committee have developed an initial
budget and staffing plan. The firm and the committee expect to
develop periodic supplemental budgets and staffing plans to comply
with the U.S. Trustee's requests for information and additional
disclosures, and any orders of this court for the post-petition
period. In accordance with the U.S. Trustee Guidelines and
recognizing the unforeseeable fees and expenses that may arise in a
large Chapter 11 case, Troutman and the committee may need to amend
the budget as necessary to reflect changed circumstances or
unanticipated events. The budget and staffing plan are intended as
estimates and not caps or limitations on fees or expenses that may
be incurred or on the number or identity of professionals or
paraprofessionals who may provide services to the committee in
these Chapter 11 cases.
Ms. Kovsky-Apap disclosed in a court filing that her firm is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
Deborah Kovsky-Apap, Esq.
Troutman Pepper Hamilton Sanders, LLP
875 Third Avenue
New York, NY 10022
Telephone: (212) 808-2726
Facsimile: (212) 704-6288
Email: deborah.kovsky@troutman.com
About Lordstown Motors Corp.
Lordstown Motors Corp. -- http://www.lordstownmotors.com/-- is an
electric vehicle OEM developing innovative light duty commercial
fleet vehicles, with the Endurance all electric pickup truck as its
first vehicle. It has engineering, research and development
facilities in Farmington Hills, Mich. and Irvine, Calif.
On June 27, 2023, Lordstown Motors Corp. and two affiliated debtors
filed voluntary petitions for relief under Chapter 11 of the
Bankruptcy Code (Bankr. D. Del. Lead Case No. 23-10831). The cases
are pending before Judge Mary F. Walrath.
The Debtors tapped White & Case, LLP and Richards, Layton & Finger,
P.A. as bankruptcy counsels; Baker & Hostetler, LLP as special
counsel; Jefferies, LLC as investment banker; KPMG, LLP as auditor;
and Silverman Consulting as restructuring advisor. Kurtzman Carson
Consultants, LLC is the Debtors' claims and noticing agent and
administrative advisor.
The U.S. Trustee for Regions 3 and 9 appointed an official
committee to represent unsecured creditors in the Debtors' Chapter
11 cases. The committee tapped Troutman Pepper Hamilton Sanders,
LLP as legal counsel and Huron Consulting Group Inc. as financial
advisor.
MALINKI SLONIK: Unsecureds to Get 100% in Plan
----------------------------------------------
Malinki Slonik, LLC (DE) submitted a Chapter 11 Plan and a
Disclosure Statement.
General Unsecured Creditors are classified in Class 5, and will
receive a distribution of 100% of their allowed claims.
Payments and distributions under the Plan will be funded by Yonel
Devico and affiliates and rent income.
Attorney for the Debtor:
Joel M. Aresty, Esq.
JOEL M. ARESTY, P.A.
309 1st Ave. S
Tierra Verde, FL 33715
Tel: (305) 904-1903
Fax: (800) 559-1870
E-mail: Aresty@Mac.com
A copy of the Disclosure Statement dated August 11, 2023, is
available at https://tinyurl.ph/BSrAY from PacerMonitor.com.
About Malinki Slonik
Malinki Slonik, LLC (DE) sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. S.D. Fla. Case No. 23-13235) on April 27,
2023, with $100,001 to $500,000 in assets and $500,001 to $1
million in liabilities. Judge Laurel M. Isicoff oversees the case.
Joel M. Aresty, PA is the Debtor's legal counsel.
MARCH ON HOSPITALITY: Seeks to Hire Nossaman as Substitute Counsel
------------------------------------------------------------------
March on Hospitality, LLC seeks approval from the U.S. Bankruptcy
Court for the Northern District of Texas to employ Nossaman LLP as
substitute counsel.
The firm will replace Forshey & Prostok, LLP as counsel in this
Chapter 11 case.
Nossaman does not intend to seek any compensation for the legal
services it will provide in this case.
Christopher Hughes, Esq., a partner at Nossaman, disclosed in a
court filing that his firm is a "disinterested person" as that term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Christopher D. Hughes, Esq.
Nossaman LLP
621 Capitol Mall, Suite 2500
Sacramento, CA 95814
Telephone: (916) 442-8888
Facsimile: (916) 442-0382
Email: chughes@Nossaman.com
About March on Hospitality
March on Hospitality LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Texas Case No. 23-40140) on Jan.
17, 2023, with up to $10 million in both assets and liabilities.
Jude Mark X. Mullin oversees the case.
Christopher D. Hughes, Esq., at Nossaman, LLP is the Debtor's legal
counsel.
MBE GROUP: Seeks Cash Collateral Access
---------------------------------------
MBE Group, LLC asks the U.S. Bankruptcy Court for the Northern
District of California, San Francisco Division, for authority to
use cash collateral.
The Debtor needs to use the inventory, equipment and receivables to
make payroll, pay rent and generally for operations.
Financial Pacific Leasing, Corp. Service Co. as Representative,
First Corp. Solutions, as Representative, Corporate Service Ca. as
Representative for CHTD Company as representative, Original
Creditor Samson, CT Corporation System, as Representative, Original
Creditor Vox Funding assert an interest in the Debtor's cash
collateral.
Based on the dates of the UCC-1 filing, the Debtor contends that
the lien dated Oct. 8, 2021 is in favor of Samson MCA, LLC and the
lien dated Jan. 26, 2023 is in favor of Vox Funding. The validity
of these liens may ultimately be disputed because Debtor may
contend that these are really disguised liens resulting from the
sale of receivables and that the creditors are not registered with
the State of California. It is not yet know if these creditors have
business licenses in California. Nonetheless, at this stage, Debtor
intends to treat these liens as if they were valid.
The Debtor proposes to provide Samson and Vox Funding a replacement
lien for the use of all pre-petition cash collateral that is used
by granting these secured creditors a lien in post-petition
receivables. Hence, these creditors' equity position would not be
impaired. If their lien proves valid, Samson and Vox Funding will
have the same priority in such replacement lien as these creditors
had pre-petition. Further, the Debtor proposes to pay Samson, as
adequate protection, commencing 30 days after entry of order
authorizing use of cash collateral, $1,344/month, representing
interest payments at the Federal Rate of Interest of 5.36%. Vox
Funding, being totally under-secured, will not receive any adequate
protection payments since if cash collateral diminishes
post-petition, its position would not have significantly
deteriorated because it would simply remain totally under-secured.
A copy of the motion is available at https://urlcurt.com/u?l=RAQYCQ
from PacerMonitor.com.
About MBE Group, LLC
MBE Group, LLC is a retailer of automotive parts, accessories, and
tire. The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Cal. Case No. 23-30556) on August 16,
2023. In the petition signed by Rhen Morales, managing member, the
Debtor disclosed $323,872 in assets and $2,134,971 in liabilities.
Judge Hannah L Blumenstiel oversees the case.
Lars Fuller, Esq., at the Fuller Law Firm PC, represents the Debtor
as legal counsel.
MERCY HOSPITAL: Court OKs Appointment of Susan Goodman as PCO
-------------------------------------------------------------
Judge Thad Collins of the U.S. Bankruptcy Court for the Northern
District of Iowa approved the appointment of Susan Goodman as
patient care ombudsman in the Chapter 11 cases of Mercy Hospital
Iowa City, Iowa and its affiliates.
Ms. Goodman was appointed by Mary Jensen, Acting U.S. Trustee for
Region 12, who oversees the bankruptcy cases.
In accordance with Section 333(b) of the Bankruptcy Code, the
patient care ombudsman shall:
* Monitor the quality of care provided to patients, to the
extent necessary under the circumstances, including interviewing
patients and physicians.
* Not later than 60 days after the date of the appointment,
and not less frequently than at 60-day intervals thereafter, report
to the court after notice to the parties involved in the cases, at
a hearing or in writing, regarding the quality of patient care
provided to patients.
* If such ombudsman determines that the quality of care
provided to patients is declining significantly or is otherwise
being materially compromised, file with the court a motion or a
written report, with notice to the concerned parties immediately
upon making such determination.
As disclosed in court filings, Ms. Goodman has no connections with
Mercy Hospital, creditors, the Office of the U.S. Trustee or any
other parties.
The ombudsman may be reached at:
Susan N. Goodman, RN JD
Pivot Health Law
P.O. Box 69734
Oro Valley, AZ 85737
Phone: (520) 744-7061
Fax: (520) 575-4075
Email: sgoodman@pivothealthaz.com
About Mercy Hospital, Iowa City, Iowa
Mercy Hospital, Iowa City, Iowa is a Catholic-based Iowa nonprofit
corporation and a tax-exempt organization described in Section
501(c)(3) of the Internal Revenue Code of 1986 (as amended) that
operates an acute care community hospital and clinics located in
Iowa City, Iowa and surrounding communities.
Mercy Hospital and affiliates, Mercy Iowa City ACO, LLC and Mercy
Services Iowa City, Inc. sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Iowa Lead Case No. 23-00623) on
Aug. 7, 2023. In its petition signed by Mark E. Toney, chief
restructuring officer, Mercy Hospital disclosed up to $500 million
in both assets and liabilities.
Judge Thad J. Collins oversees the cases.
The Debtors tapped Nyemaster Goode, P.C and McDermott Will & Emery
LLP as bankruptcy co-counsel; Toneykorf Partners, LLC to provide
interim management services; H2C Securities Inc. as investment
banker; and Epiq Corporate Restructuring, LLC as notice and claims
agent.
Mary Jensen, Acting U.S. Trustee for Region 12, appointed an
official committee to represent unsecured creditors in the Debtors'
Chapter 11 cases.
MERCY HOSPITAL: Gets OK to Hire Epiq as Claims and Noticing Agent
-----------------------------------------------------------------
Mercy Hospital, Iowa City, Iowa and its affiliates received
approval from the U.S. Bankruptcy Court for the Northern District
of Iowa to employ Epiq Corporate Restructuring, LLC as its claims,
noticing agent, solicitation, and administrative agent.
Epiq will oversee the distribution of notices and will assist in
the maintenance, processing, and docketing of proofs of claim filed
in the Chapter 11 cases of the Debtors.
The hourly rates of Epiq's professionals are as follows:
Clerical/Administrative Support $25 – $55
IT/Programming $55 – $85
Project Managers/Consultants/Directors $75 – $180
Solicitation Consultant $180
Executive Vice President, Solicitation $190
In addition, Epiq will seek reimbursement for expenses incurred.
Kate Mailloux, a senior director at Epiq Corporate Restructuring,
disclosed in a court filing that the firm is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Kate Mailloux
Epiq Corporate Restructuring, LLC
777 Third Avenue, 12th Floor
New York, NY 10017
Telephone: (646) 282-2532
Email: kmailloux@epiqglobal.com
About Mercy Hospital, Iowa City, Iowa
Mercy Hospital, Iowa City, Iowa is a Catholic-based Iowa nonprofit
corporation and a tax-exempt organization described in Section
501(c)(3) of the Internal Revenue Code of 1986 (as amended) that
operates an acute care community hospital and clinics located in
Iowa City, Iowa and surrounding communities.
Mercy Hospital and affiliates, Mercy Iowa City ACO, LLC and Mercy
Services Iowa City, Inc. sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Iowa Lead Case No. 23-00623) on
Aug. 7, 2023. In its petition signed by Mark E. Toney, chief
restructuring officer, Mercy Hospital disclosed up to $500 million
in both assets and liabilities.
Judge Thad J. Collins oversees the cases.
The Debtors tapped Nyemaster Goode, P.C and McDermott Will & Emery
LLP as bankruptcy co-counsel; Toneykorf Partners, LLC to provide
interim management services; H2C Securities Inc. as investment
banker; and Epiq Corporate Restructuring, LLC as notice and claims
agent.
MERIDIAN HOLDING: Unsecureds Owed $83K to Be Paid in Full
---------------------------------------------------------
Meridian Holding Group, LLC, submitted a Second Amended Plan of
Reorganization.
Since the filing of the original plan, the Debtor has learned
through discovery that Steven and Sheila Webster and Webster
Acquisition Holdings, LLC (the successor to Assurance) have paid
themselves over $5,000,000 from Webster Electric Company, LLC, and
Webco Leasing & Supply Co. This has removed the need for the
Debtor to be merged with Webster Holding Group, LLC and removed the
need to ask the Court to modify any notes or obligations that the
Debtor did not sign. In addition, it has reduced the amount of
money necessary to pay those parties in full. The Debtor simply
wants to pay its creditors and complete its purchase. This
simplified Amended Plan is being filed.
Under the Plan, Class 2 consists of all holders of Allowed General
Unsecured Claims against the Debtor and is comprised of Conwell
Business Law, LLLP ("CBL"), Fair Value Advisors, Gray Robinson,
P.A., and GT Securities, Inc. (the "Other Unsecured Creditors").
The Other Unsecured Creditors shall be paid the aggregate amount of
$83,614 on the Effective Date of the Plan in full and final
satisfaction of their Allowed General Unsecured Claims and will
receive no other payments under the Plan.
CBL has filed Claim Number 1 in this case in the amount of
$2,478,227 (the "CBL Claim"). The Debtor and CBL have agreed to
the following treatment under the Plan for the CBL Claim: (i) the
CBL Claim shall be an Allowed General Unsecured Claim in the amount
of $2,478,227; (ii) the Debtor has no objection to the CBL Claim
and acknowledges and agrees that the services rendered by CBL as
detailed in the invoices supporting the CBL Claim were reasonable;
(iii) for purposes of distributions under the Plan only, the Debtor
and CBL have agreed that the CBL Claim shall be reduced to the
amount of $1,500,000 (the "CBL Reduced Claim"); (iv) on the
Effective Date, the Debtor shall pay CBL an amount, in cash, equal
to the amount of the Other Unsecured Creditors Payment against the
amount of the CBL Reduced Claim; (v) thereafter, the Debtor shall
make fixed payments to CBL of $10,000 per month against the amount
of the CBL Reduced Claim with no interest accruing on the CBL
Reduced Claim (the "Monthly Payment"); (vi) the first monthly
payment shall be made by the Debtor beginning on the first day of
the calendar month following the Effective Date (the "First Monthly
Payment Date"), with subsequent Monthly Payments due on the 1st day
of each month thereafter and a full and final "balloon" payment due
on the 60th month following the First Monthly Payment Date; (vii)
the Debtor shall have a grace period of 5 days if any Monthly
Payment or Additional Payment is not made on the due date, with no
notice required by CBL as to such grace period; (viii) the Debtor
may prepay all or any portion of the CBL Reduced Claim at any time
without premium or penalty; (ix) the failure to make any payment
when due shall constitute a default and a failure to cure after 5
days written notice from CBL to the Debtor will cause the CBL
Reduced Claim to revert to the amount of $2,478,227.12 less
payments received by CBL; (x) until the CBL Reduced Claim is paid
in full, the Debtor and its subsidiaries shall not be entitled to
make any distributions to Robert Manners, or any of his affiliates,
or any parties who are not creditors of the Debtor as listed in the
Chapter 11 case or any shareholders of the Debtor (each of the
foregoing, a "Distribution Payment") except as follows: if the
Debtor intends to make a Distribution Payment, the Debtor shall
provide 2 days advance written notice to CBL with sufficient
information regarding the amount of the Distribution Payment and to
whom the Distribution Payments will be made, and CBL shall be
entitled to be paid 50% of the total amount of the Distribution
Payment less any Monthly Payments received by CBL during the month
in question (each, an "Additional Payment"); (xi) during the term
of the CBL Note (as defined below), CBL shall have all standard
rights and remedies in connection with any default by the Debtor,;
and (xii) all payments to CBL under the Plan shall be by wire
transfer of immediately available funds to an account designated in
writing by CBL. Upon entry of the Confirmation Order, the
Reorganized Debtor shall sign a promissory note (the "CBL Note") in
favor of CBL containing the foregoing terms. Class 2 is impaired.
The property of the Debtor's bankruptcy estate includes all its
property "wherever located and by whomever held." 11 U.S.C. Sec.
541(a). Though the actions by Assurance divested the Debtor of
control over WHG, the Debtor remains the owner of 100% of the
Common Units of interest of WHG. Accordingly, the Debtor has owned
and continues to own the Debtor's Businesses Subsidiaries. The
change of control effected by Webster and Assurance did not change
the ownership or equity interests of the Debtor in the property
that it purchased. The Plan simply returns to the Debtor the
control over its assets while paying off Assurance and the Websters
in full. The return of control to the Debtor is in the best
interests of the estate.
When this case was first filed, the challenges were daunting. The
Debtor was not in control of its businesses, and the debt owed to
the Websters and to Assurance was quite large. The feasibility
challenges were large because the Debtor needed to show that the
operations of the entities could repay the debt over time, and the
Debtor needed to obtain financing when the assets, books and
records were in the hands of unfriendly parties. However, after
the filing, things changed. The Websters and Assurance helped
themselves to the assets and they repaid themselves almost all of
the monies owed them.
The amounts remaining are such that the Debtor does not need to pay
the debt over time. The Debtor, through its principal Robert
Manners, will pay the redemption price in cash to the Websters on
the Effective Date. The remaining amount owed to Assurance is
approximately $1,055,000. Through discovery during the case the
Debtor has found that the Debtor's businesses have over $1,000,000
in the bank, about $2,400,000 in accounts receivable with payables
of $150,000 and the Debtor will have just under a million dollars
in net profit on existing work. With the injection of cash to pay
off the Websters, the Businesses have enough assets to pay off
Assurance. Once back into control the Debtor will be able to
secure a new debt facility to fund operations and bonding to
acquire new business. Of course, there are risks, but those risks
will be borne by the unsecured creditors, who will vote unanimously
for the Plan.
Attorneys for Meridian Holding Group LLC:
Frank M. Wolff, Esq.
NARDELLA & NARDELLA, PLLC
135 W. Central Blvd., Suite 300
Orlando, FL 32801
Tel: (407) 966-2680
E-mail: fwolff@nardellalaw.com
A copy of the Second Amended Plan of Reorganization dated August
11, 2023, is available at https://tinyurl.ph/yhElv from
PacerMonitor.com.
About Meridian Holding Group
Meridian Holding Group, LLC, is an investment company engaged in
the commercial business activity of acquiring two businesses,
Webster Electric Co., LLC and Webco Leasing & Supply, LLC
(together, the "Subsidiaries").
Meridian Holding filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla. Case No.
23-00388) on Jan. 31, 2023. The petition was signed by Robert
Manners as manager. At the time of filing, the Debtor estimated
$10 million to $50 million in assets and $1 million to $10 million
in liabilities. Frank Wolff, Esq., at the law firm of Frank M.
Wolff Law, P.A., is the Debtor's counsel.
MIKE JOHNSON: Taps Edward Burr as Chief Restructuring Officer
-------------------------------------------------------------
Mike Johnson AZ Property Investments, LLC and Mike Johnson
Enterprises, LLC seek approval from the U.S. Bankruptcy Court for
the District of Arizona to employ Edward Burr of Mac Restructuring
Advisors, LLC as their chief restructuring officer.
Mr. Burr as CRO will oversee the operations of the Debtors and
their reorganization efforts, which include general financial and
business oversight; compilation and analysis of financial
information; advice on cash collateral issues; review and
implementation of a reorganization structure and plan; retention of
personnel; and prosecution of causes of action that belong to the
Debtors' estate.
Mr. Burr will be compensated at $425 per hour.
In court papers, Mr. Burr disclosed that he is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
Mr. Burr can be reached at:
Edward Burr
Mac Restructuring Advisors, LLC
10191 E. Shangri La Rd.
Scottsdale, AZ 85260
Telephone: (602) 418-2906
About Mike Johnson AZ
Mike Johnson AZ Property Investment, LLC and Mike Johnson
Enterprises, LLC filed their petitions under Chapter 11, Subchapter
V of the Bankruptcy Code (Bankr. D. Ariz. Case Nos. 23-02598 and
23-03234) on April 24, 2023 and May 16, 2023, respectively. The
cases are jointly administered in Case No. 23-02598. James E. Cross
of Cross Law Firm, P.L.C. has been appointed as Subchapter V
trustee.
Judge Paul Sala oversees the cases.
The Debtors tapped Anthony W. Austin, Esq., at Fennemore Craig,
P.C. as legal counsel and West to East Business Solutions, LLC as
accountant. Edward Burr of Mac Restructuring Advisors, LLC is their
chief restructuring officer (CRO).
MIKE JOHNSON: Taps West to East Business Solutions as Accountant
----------------------------------------------------------------
Mike Johnson AZ Property Investments, LLC and Mike Johnson
Enterprises, LLC seek approval from the U.S. Bankruptcy Court for
the District of Arizona to employ West to East Business Solutions,
LLC as their accountant.
The Debtors need an accountant to assist them with the
reorganization, to provide accounting advice, and to assist with
the preparation and filing of their taxes.
The hourly rates of the firm's professionals are as follows:
Accountant $80
Senior Accountant $150
Chief Financial Officer $200
Nadia Conn, president of West to East Business Solutions, disclosed
in a court filing that the firm is a "disinterested person" as that
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Nadia Conn
West to East Business Solutions, LLC
2375 E. Camelback Road, Suite 600-153
Phoenix, AZ, 85016
Telephone: (602) 821-7516
Email: info@westtoeastllc.com
About Mike Johnson AZ
Mike Johnson AZ Property Investment, LLC and Mike Johnson
Enterprises, LLC filed their petitions under Chapter 11, Subchapter
V of the Bankruptcy Code (Bankr. D. Ariz. Case Nos. 23-02598 and
23-03234) on April 24, 2023 and May 16, 2023, respectively. The
cases are jointly administered in Case No. 23-02598. James E. Cross
of Cross Law Firm, P.L.C. has been appointed as Subchapter V
trustee.
Judge Paul Sala oversees the cases.
The Debtors tapped Anthony W. Austin, Esq., at Fennemore Craig,
P.C. as legal counsel and West to East Business Solutions, LLC as
accountant. Edward Burr of Mac Restructuring Advisors, LLC is their
chief restructuring officer (CRO).
NATIONAL MENTOR: Guggenheim SOF Marks $150,000 Loan at 26% Off
--------------------------------------------------------------
Guggenheim Strategic Opportunities Fund has marked its $150,000
loan extended to National Mentor Holdings, Inc to market at
$111,413 or 74% of the outstanding amount, as of May 31, 2023,
according to Guggenheim SOF'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.
Guggenheim SOF is a participant in a Bank Loan to National Mentor
Holdings, Inc. The loan accrues interest at a rate of 8.75% (3
Month Term SOFR + 3.75%, Rate Floor: 3.75%) per annum. The loan
matures on March 2, 2028.
Guggenheim Strategic Opportunities Fund was organized as a Delaware
statutory trust on November 13, 2006. Guggenheim SOF is registered
as a diversified, closed-end management investment company under
the Investment Company Act of 1940, as amended.
National Mentor Holdings, Inc. operates as a holding company. The
Company, through its subsidiaries, provides community-based
services for people with injuries and disabilities.
NEW JERSEY VISION: Ombudsman Gets OK to Hire Formanlaw as Counsel
-----------------------------------------------------------------
Virgina Plaza, R. Ph., the patient care ombudsman appointed in the
Chapter 11 case of New Jersey Vision Associates, PC, received
approval from the U.S. Bankruptcy Court for the District of New
Jersey to employ Formanlaw LLC as her counsel.
The firm will render these services:
(a) represent the ombudsman in understanding and performing
her obligations under 11 U.S.C. Sec. 333;
(b) represent the ombudsman in court proceedings or hearings;
(c) advise and represent the ombudsman concerning the impact
upon patients of any potential reorganization or sale of the
Debtor's assets; and
(d) perform other legal services required throughout the case
by the court in accordance with the ombudsman's duties and powers.
The hourly rates of the firm's counsel and staff are as follows:
Charles M. Forman, Attorney $750
Erin J. Kennedy, Attorney $600
Michael E. Holt, Attorney $600
Jordan B. DeFlora, Attorney $500
Kimberly J. Salomon, Attorney $425
Paraprofessionals and Legal Assistants $225 - $250
Charles Forman, Esq., managing member of Forman Holt, disclosed in
a court filing that his firm is a "disinterested person" as that
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Charles M. Forman, Esq.
Forman Holt
365 West Passaic Street, Suite 400
Rochelle Park, NJ 07662
Telephone: (201) 857-7111
Facsimile: (201) 655-6650
Email: cforman@formanlaw.com
About New Jersey Vision
New Jersey Vision Associates, P.C. provides comprehensive eye care
services including routine eye examinations, screenings for eye
problems related to diabetes, high blood pressure, and thyroid
disease, as well as eye disorders such as cataract, glaucoma, and
macular degeneration.
New Jersey Vision Associates filed a Chapter 11 petition (Bankr.
D.N.J. Case No. 23-15043) on June 9, 2023, with $100,000 to
$500,000 in assets and $1 million to $10 million in liabilities.
Mitchell Vogel, MD, president, signed the petition.
Jeffrey A. Cooper, Esq., at Rabinowitz, Lubetkin & Tully, LLC, is
the Debtor's legal counsel.
Virgina Plaza, R. Ph., the patient care ombudsman appointed in this
Chapter 11 case, is represented by Formanlaw LLC, doing business as
Forman Holt.
NEW MEDICAL: Case Summary & Four Unsecured Creditors
----------------------------------------------------
Debtor: New Medical and Education Services Inc. C.S.P.
257 Ave. Lauro Pineiro
Ceiba, PR 00735
Chapter 11 Petition Date: August 22, 2023
Court: United States Bankruptcy Court
District of Puerto Rico
Case No.: 23-02588
Debtor's Counsel: Gloria Justiniano Irizarry, Esq.
Calle A. Ramirez Silva #8
Ensanche Martinez
Mayaguez, PR 00680
Tel: 787-831-2577
Fax: 787-805-7350
Email: justinianolaw@gmail.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Orvil Edgardo Ramos Diaz as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's four unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/XFZ7JGA/NEW_MEDICAL_AND_EDUCATION_SERVICES__prbke-23-02588__0001.0.pdf?mcid=tGE4TAMA
NIC ACQUISITION: Guggenheim SOF Marks $1.04MM Loan at 23% Off
-------------------------------------------------------------
Guggenheim Strategic Opportunities Fund has marked its $1,043,229
loan extended to NIC Acquisition Corp to market at $801,054 or 77%
of the outstanding amount, as of May 31, 2023, according to
Guggenheim SOF'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.
Guggenheim SOF is a participant in a Bank Loan to NIC Acquisition
Corp. The loan accrues interest at a rate of 8.91% (3 Month Term
SOFR + 3.75%, Rate Floor: 3.75%) per annum. The loan matures on
December 29, 2027.
Guggenheim Strategic Opportunities Fund was organized as a Delaware
statutory trust on November 13, 2006. The Fund is registered as a
diversified, closed-end management investment company under the
Investment Company Act of 1940, as amended.
NIC Acquisition Corp., d/b/a Innovative Chemical Products Group
based in Andover, Mass., is a formulator of specialty coatings,
adhesives, sealants, and elastomers serving the industrial and
construction markets. ICP operates in two business segments -- ICP
Building Solutions Group and ICP Industrial Solutions Group.
NICE VIEW 82: Unsecured Creditors to Get 100% Under Plan
--------------------------------------------------------
Nice View 82, LLC (DE), submitted a Chapter 11 Plan and a
Disclosure Statement.
General Unsecured Creditors are classified in Class 5, and will
receive a distribution of 100% of their allowed claims.
Payments and distributions under the Plan will be funded by Yonel
Devico and affiliates and rent income.
Attorney for the Debtor:
Joel M. Aresty, Esq.
JOEL M. ARESTY, P.A.
309 1st Ave. S
Tierra Verde, FL 33715
Tel: (305) 904-1903
Fax: (800) 559-1870
E-mail: Aresty@Mac.com
A copy of the Disclosure Statement dated August 11, 2023, is
available at https://tinyurl.ph/WGlMh from PacerMonitor.com.
About Nice View 82
Nice View 82, LLC (DE), filed a Chapter 11 bankruptcy petition
(Bankr. S.D. Fla. Case No. 23-11520) on Feb. 27, 2023, with as much
as $1 million in both assets and liabilities. Judge Laurel M.
Isicoff oversees the case.
The Debtor is represented by Joel M. Aresty, P.A.
OAKWOOD DREAMS: Class 3 Unsecureds Owed $145K to be Paid in Full
----------------------------------------------------------------
Oakwood Dreams LLC submitted a First Amended Chapter 11 Disclosure
Statement.
The Debtor owns the real property – located at 21 E. Oakwood
Hills Drive, Chandler, AZ 85248. The Property is an 8,000 square
foot single family residential property with five bedrooms and
seven bathrooms. The estimated fair market value is $3,563,219.
This is an estimate and varies with the source of the valuation
estimate.
The Debtor believes it has a claim against Marwah for
nondisclosures during the sale of the Property. The Debtor does
not know the value of the claims against Marwah, nor the attendant
costs of pursuing such litigation. The Debtor intends to pursue
this claim if settlement discussions to resolve the secured debt
are unsuccessful. The statute of limitations is two years from the
date of discovery under Arizona law. Debtor discovered the roof
issue in or about May 2022 and will commence an action prior to May
2024. The Debtor anticipates an action will be commenced
post-confirmation and will be funded with Debtor's net income
post-confirmation to the extent it does not impact plan payments in
Debtor's Chapter 11 Plan. The Debtor anticipates litigation costs
will be approximately $50,000. Debtor has a repair estimate from
Velocity Public Adjusting in the amount of $359,235.93 dated July
7, 2022. This amount would be the basis for compensatory damages
along with attorneys' fees, costs and punitive damages if awarded.
To the extent Debtor initiates litigation, prevails and recovers,
Debtor will contribute out of such collected proceeds (after
deduction of attorneys' fees and costs paid by third parties) to
offset Marwah's secured claim and/or pay general unsecured
claimants in an amount not to exceed the full amount of their
allowed claims.
Under the Plan, Class 3 General Unsecured Claims total $145,672 and
are impaired. Class 3 Creditors will be paid in full plus interest
at 6%. Payments to Class 3 Creditors will begin 30 days after plan
confirmation in the amount of $2,816.23.
The Debtor's income is increasing. July's net income was $3,887
exclusive of professional fees that were paid. Debtor will have
sufficient funds to pay professional fees in full upon confirmation
and the $19,666 to secured and unsecured creditors under the
proposed Chapter 11 Plan. The Residential Lease Agreement will pay
$15,000 per month from D2S3 Consulting Group LLC upon court
approval and the remainder of the payment to Marwah will be made
from Debtor's consulting income.
The Debtor's Plan will be funded by its operations, excess cash
flow, and increase of monthly rent at renewal of the current lease.
Attorneys for the Debtor:
Chris D. Barski, Esq.
BARSKI LAW PLC
9332 N. 95th Way, Suite 109
Scottsdale, AZ 85258
Tel: (602) 441-4700
E-mail: cbarski@barskilaw.com
A copy of the First Amended Chapter 11 Disclosure Statement dated
August 11, 2023, is available at https://tinyurl.ph/arSEF from
PacerMonitor.com.
About Oakwood Dreams
Oakwood Dreams, LLC, owns a single-family home located at 21 E.
Oakwood Hills Drive, Chandler, Ariz., valued at $3.41 million based
on estimates provided by Zillow.
Oakwood Dreams filed a petition for relief under Subchapter V of
Chapter 11 of the Bankruptcy Code (Bankr. D. Ariz. Case No.
23-01008) on Feb. 20, 2023. In the petition filed by Dallas
Baldry, trustee of Bella Vita Ventures Trust, the Debtor reported
total assets of $3,914,700 and total liabilities of $2,493,877.
The Debtor is represented by Chris D. Barski, Esq., at Barski Law,
PLC.
ONH AFC CS: Seeks to Hire B. Riley as Restructuring Advisor
-----------------------------------------------------------
ONH AFC CS Investors, LLC and ONH 1601 CS Investors, LLC seek
approval from the U.S. Bankruptcy Court for the District of
Delaware to employ GlassRatner Advisory & Capital Group, LLC, doing
business as B. Riley Advisory Services, as restructuring advisor.
The firm will render these services:
(a) attend hearings, provide information and analyses for
inclusion in bankruptcy court filings and testimony related
thereto;
(b) provide in-court testimony, as required;
(c) support negotiations with creditors and other constituents
in the Chapter 11 cases;
(d) negotiate terms of debtor in possession (DIP) financing,
if necessary;
(e) supervise the preparation of monthly financial reports, as
required of a debtor in possession, and other financial reporting
required by the Office of the United States Trustee on behalf of a
debtor in possession;
(f) assist the Debtors with the preparation of Schedules of
Assets and Liabilities and Statements of Financial Affairs and DIP
financing budgets;
(g) help the Debtors prepare, maintain and monitor cash flow
projections and weekly variance analyses;
(h) cause the Debtors to exercise its rights under certain
agreements;
(i) review, evaluate and analyze the financial ramifications
of proposed transactions for which the Debtors may seek Bankruptcy
Court approval;
(j) identify and assess potential restructuring alternatives;
(k) open and close bank accounts;
(l) work with the Debtors and their professionals to maximize
the value of the Debtors' estates;
(m) pursue litigation and claims the bankruptcy estate(s) may
have and act as the "Responsible Party" for all corporate
decisions; and/or;
(n) assist the Debtors in developing and supporting a proposed
Chapter 11 plan.
The hourly rates of the firm's professionals are as follows:
Eric Lee $495
Joseph Pegnia $595
Benjamin Kehler $350
Michael Proctor $295
Senior Managing Directors $525 - $795
Managing Directors $475 - $650
Other $250 - $525
In addition, the firm will seek reimbursement for out-of-pocket
expenses incurred.
B. Riley Advisory holds a retainer in the amount of $31,308.05.
Eric Lee, a managing director at B. Riley Advisory, disclosed in a
court filing that the firm is a "disinterested person" as defined
in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Eric Lee
B. Riley Advisory Services
7033 E. Greenway Parkway, Suite 170
Scottsdale, AZ 85254
Telephone: (480) 212-4316
Email: elee@brileyfin.com
About ONH AFC CS
ONH AFC CS Investors, LLC and ONH 1601 CS Investors, LLC filed
their petitions under Chapter 11, Subchapter V of the Bankruptcy
Code (Bankr. D. Del. Lead Case No. 23-10931) on July 14, 2023. At
the time of the filing, ONH AFC reported $100,001 to $500,000 in
both assets and liabilities while ONH 1601 reported up to $50,000
in assets and $100,001 to $500,000 in liabilities.
Judge Craig T. Goldblatt oversees the cases.
The Debtors tapped Jorian L. Rose, Esq., at Baker & Hostetler, LLP
and Matthew B. McGuire, Esq., at Landis Rath & Cobb, LLP as legal
counsel. GlassRatner Advisory & Capital Group, LLC, doing business
as B. Riley Advisory Services, is the Debtors' restructuring
advisor.
ONH AFC CS: Seeks to Hire Baker & Hostetler as Bankruptcy Counsel
-----------------------------------------------------------------
ONH AFC CS Investors, LLC and ONH 1601 CS Investors, LLC seek
approval from the U.S. Bankruptcy Court for the District of
Delaware to employ Baker & Hostetler, LLP as counsel.
The Debtors require legal counsel to:
(a) give advice regarding the rights and obligations of the
Debtors with respect to their various business arrangements and the
impact of their Chapter 11 bankruptcy cases;
(b) advise the Debtors with respect to, and assist in the
negotiation and documentation of, the Debtors' pre-bankruptcy
financial affairs and negotiation of agreements, settlement
agreements, and related transactions;
(c) review the nature and validity of any claims and interest
asserted against the Debtors' property and advise the Debtors
concerning the enforceability of such claims and interests;
(d) advise the Debtors concerning corporate matters during the
bankruptcy cases;
(e) advise the Debtors with respect to a Chapter 11 plan; and
(f) serve as counsel to the Debtors with respect to
regulatory, investigatory and litigation matters initiated or
ongoing in connection with the bankruptcy cases.
The hourly rates of the firm's counsel and staff are as follows:
Partners $560 - $975
Associates $380 - $530
Paralegals $255 - $345
In addition, the firm will seek reimbursement for out-of-pocket
expenses incurred.
Within 90 days of the petition date, the firm was paid by the
Debtors in the aggregate amount of $151,614.76.
Jorian Rose, Esq., a partner at Baker & Hostetler, disclosed in a
court filing that the firm is a "disinterested person" as defined
in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Jorian L. Rose, Esq.
Baker & Hostetler, LLP
45 Rockefeller Plaza
New York, NY 10111
Telephone: (212) 589-4200
Email: jrose@bakerlaw.com
About ONH AFC CS
ONH AFC CS Investors, LLC and ONH 1601 CS Investors, LLC filed
their petitions under Chapter 11, Subchapter V of the Bankruptcy
Code (Bankr. D. Del. Lead Case No. 23-10931) on July 14, 2023. At
the time of the filing, ONH AFC reported $100,001 to $500,000 in
both assets and liabilities while ONH 1601 reported up to $50,000
in assets and $100,001 to $500,000 in liabilities.
Judge Craig T. Goldblatt oversees the cases.
The Debtors tapped Jorian L. Rose, Esq., at Baker & Hostetler, LLP
and Matthew B. McGuire, Esq., at Landis Rath & Cobb, LLP as legal
counsel. GlassRatner Advisory & Capital Group, LLC, doing business
as B. Riley Advisory Services, is the Debtors' restructuring
advisor.
ONH AFC CS: Seeks to Hire Landis Rath & Cobb as Bankruptcy Counsel
------------------------------------------------------------------
ONH AFC CS Investors, LLC and ONH 1601 CS Investors, LLC seek
approval from the U.S. Bankruptcy Court for the District of
Delaware to employ Landis Rath & Cobb, LLP as co-counsel.
The firm will render these services:
(a) advise the Debtors regarding Delaware local rules,
practices, precedents, and procedures and provide substantive and
strategic advice on how to accomplish their goals in connection
with the prosecution of this case;
(b) advise and assist the Debtors with respect to their
rights, powers and duties and take all necessary action to protect
and preserve their estates;
(c) prepare and file necessary legal papers;
(d) handle inquiries and calls from creditors and counsel to
interested parties regarding pending matters and the general status
of these Chapter 11 cases;
(e) appear in this court and any appellate courts to represent
and protect the interests of the Debtors and their estates;
(f) attend meetings including any meeting of creditors and
negotiate with representatives of creditors and other
parties-in-interest.
(g) advise and assist the Debtors in maximizing value in these
Chapter 11 cases; and
(h) perform all other necessary legal services for the Debtors
in connection with the prosecution of these Chapter 11 cases.
The hourly rates of the firm's counsel and staff are as follows:
Partners $820 - $1,150
Associates $475 - $625
Paralegals $275 - $310
Legal Assistants $200
In addition, the firm will seek reimbursement for out-of-pocket
expenses incurred.
Within 90 days of the petition date, the firm received a retainer
payment from the Debtors in the amount of $75,000.
Matthew McGuire, Esq., a partner at Landis Rath & Cobb, disclosed
in a court filing that his firm is a "disinterested person" as
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Matthew B. McGuire, Esq.
Landis Rath & Cobb LLP
919 Market Street, Suite 1800
Wilmington, DE 19801
Telephone: (302) 467-4416
Email: mcguire@lrclaw.com
About ONH AFC CS
ONH AFC CS Investors, LLC and ONH 1601 CS Investors, LLC filed
their petitions under Chapter 11, Subchapter V of the Bankruptcy
Code (Bankr. D. Del. Lead Case No. 23-10931) on July 14, 2023. At
the time of the filing, ONH AFC reported $100,001 to $500,000 in
both assets and liabilities while ONH 1601 reported up to $50,000
in assets and $100,001 to $500,000 in liabilities.
Judge Craig T. Goldblatt oversees the cases.
The Debtors tapped Jorian L. Rose, Esq., at Baker & Hostetler, LLP
and Matthew B. McGuire, Esq., at Landis Rath & Cobb, LLP as legal
counsel. GlassRatner Advisory & Capital Group, LLC, doing business
as B. Riley Advisory Services, is the Debtors' restructuring
advisor.
PARAMETRIC SOLUTIONS: Court OKs Interim Cash Collateral Access
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Florida,
West Palm Beach Division, authorized Parametric Solutions, Inc. to
use cash collateral on a interim basis in accordance with the
budget, with a 10% variance.
The Debtor needs to be able to pay its regular business expenses,
as well as its administrative expenses as they become due, to
continue operating as a going concern, and to maintain compliance
with the guidelines of the Office of the U.S. Trustee.
Bank of America, N.A. may have a lien on the cash collateral of the
of the Debtor by virtue of several UCC-1 financing statements in
the Florida Secured Transaction Registry.
MUFG Union Bank, N.A. may have a lien on the cash collateral of the
Debtor by virtue of a UUC-1 filed on July 27, 2020 (Instrument No.
202003706087), as amended by a UCC Financing Statement Amendment
filed on February 25, 2022 (Instrument No. 202200625005); as
amended by a UCC Financing Statement Amendment filed on January 25,
2023 (Instrument No. 202300229542) in the Florida Secured
Transaction Registry. Pursuant to the MUFG Liens, MUFG has a
security interest in accounts and accounts receivable of the
Debtor.
During the pendency of this bankruptcy and until further Order of
the Court, all pre-petition and post-petition income will be turned
over and paid to the Debtor for deposit into the Debtor in
Possession bank accounts.
As adequate protection, BANA and MUFG are granted a replacement
lien to the same extent as any pre-petition lien, pursuant to 11
U.S.C. Section 361(2) on and in all property set forth in the
respective security agreements and related lien documents on an
interim basis, without any waiver by the Debtor as to the extent,
validity, or priority of said liens.
As additional adequate protection, the Debtor will continue to pay
BANA the sum of $29,428 monthly on the term loan and $51,772 on the
Equipment Loan.
A continued hearing on the matter is set for August 29, 2023 at
1:30 p.m.
A copy of the order is available at https://urlcurt.com/u?l=5OdpRl
from PacerMonitor.com.
A copy of the budget is available at https://urlcurt.com/u?l=GN6nD6
from PacerMonitor.com.
The Debtor projects total expenses, on a monthly basis, as
follows:
$12,920 for August 2023; and
$12,920 for September 2023.
About Parametric Solutions, Inc.
Parametric Solutions, Inc. provides architectural, engineering, and
related services. The Debtor sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 23-16141) on
August 3, 2023. In the petition signed by David Cusano, director,
the Debtor disclosed $6,147,086i in assets and $5,597,168 in
liabilities.
Judge Mindy A. Mora oversees the case.
Craig I. Kelley, Esq., at Kelley, Fulton and Kaplan, PL, represents
the Debtor as legal counsel.
PASSERO LLC: Gets OK to Hire Joel A. Schechter as Legal Counsel
---------------------------------------------------------------
Passero, LLC received approval from the U.S. Bankruptcy Court for
the Northern District of Illinois to employ the Law Offices of Joel
A. Schechter to handle its Chapter 11 case.
The firm will charge at its hourly rate of $500 plus expenses.
The firm received a retainer in the amount of $17,500 and filing
fee of $1,738 from the Debtor.
Mr. Schechter disclosed in a court filing that his firm is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
Joel A. Schechter, Esq.
Law Offices of Joel A. Schechter
53 W. Jackson Blvd., Suite 1522
Chicago, IL 60604
Telephone: (312) 332-0267
Email: joel@jasbklaw.com
About Passero LLC
Passero, LLC filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. N.D. Ill. Case No. 23-09011) on July 11,
2023, with $100,001 to $500,000 in assets and $500,001 to $1
million in liabilities. Matthew Brash of Newpoint Advisors
Corporation has been appointed as Subchapter V trustee.
Judge A. Benjamin Goldgar oversees the case.
Joel A Schechter, Esq., at the Law Offices of Joel Schechter is the
Debtor's bankruptcy counsel.
PECF USS INTERMEDIATE: Guggenheim SOF Marks $3.9MM Loan at 22% Off
------------------------------------------------------------------
Guggenheim Strategic Opportunities Fund has marked its $3,950,000
loan extended to PECF USS Intermediate Holding III Corp. to market
at $3,065,200 or 78% of the outstanding amount, as of May 31, 2023,
according to Guggenheim SOF'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.
Guggenheim SOF is a participant in a Bank Loan to PECF USS
Intermediate Holding III Corp. The loan accrues interest at a rate
of 9.52% ((1 Month USD LIBOR + 4.25%) and (3 Month USD LIBOR +
4.25%), Rate Floor: 4.75%) per annum. The loan matures on December
15, 2028.
Guggenheim Strategic Opportunities Fund was organized as a Delaware
statutory trust on November 13, 2006. Guggenheim SOF is registered
as a diversified, closed-end management investment company under
the Investment Company Act of 1940, as amended.
PECF USS Intermediate Holding III Corporation is the issuing entity
for a debt extended to United Site Services Inc., a provider of
portable sanitation and related site services.
PLOURDE SAND: May Use $472,464 of Cash Collateral
-------------------------------------------------
The U.S. Bankruptcy Court for the District of New Hampshire
authorized Plourde Sand & Gravel Co., Inc. to use cash collateral
up to $472,464 on an interim basis during the period between
September 1, 2023 and November 30, 2023.
As adequate protection for any diminution occurring subsequent to
the Petition Date in the value of the Internal Revenue Service's
and Greenlake Real Estate Fund LLC's interests in cash collateral,
and to the extent of such diminution, including without limitation
such diminution as may be caused by the imposition of the automatic
stay under 11 U.S.C. Section 362(a) or the Debtor's use of cash
collateral, the Internal Revenue Service and Greenlake Real Estate
Fund LLC will be and are granted the following adequate protection
for the value of their liens in, to or on the Debtor's interest in
cash collateral:
a. During the Use Period, the Debtor will deposit into a
segregated escrow account designated as a "Plourde Sand & Gravel,
Inc., Debtor in Possession" account at TD Bank, which is an
approved depository for debtor in possession funds, the monthly sum
of $26,157 on or before the 30th day of each month. The Adequate
Protection Deposits will continue each month during the Use Period
or until further order of Court. The funds will be applied to the
secured debt of the IRS and/or Greenlake as their interests may
ultimately be adjudicated, determined and ordered by the Court or
as they may mutually agree subject to the approval of the Court.
b. The Debtor will also deposit with the Debtor's Counsel the
monthly sum of $5,000 as shown on the budget, which will be free
and clear of any and all liens held or asserted by IRS and Green
Lake and all other liens, including replacement liens granted.
c. IRS and Greenlake are granted continuing, valid, binding,
enforceable and automatically perfected liens on the Debtor's
property acquired post-petition, excluding so-called Chapter 5
Claims, which liens will be supplemental and in addition to liens
on the Petition Date and will attach to the same types of property
and with the same validity, extent and priority as to which their
respective liens existed prior to the Petition Date,
notwithstanding the provisions of 11 U.S.C. Section 552, except as
otherwise provided for herein with respect to causes of action and
other claims (as defined in the Bankruptcy Code) arising under
Chapter 5 of the Bankruptcy Code, the proceeds thereof and the
funds deposited in escrow to pay the Debtor's Counsel's fees if,
when and to the extent approved by the court.
d. The Debtor will timely file all post-petition tax returns
on the due date with the appropriate IRS office. A copy of all tax
returns will be provided to the IRS within two business days of
submission by Kathy Blais, IRS Insolvency, 75 Portsmouth Blvd.,
Portsmouth, NH 03801.
e. The Debtor will timely pay each federal tax deposit as it
accrues (when payroll is made) by electronic transfer or through a
federal depository payable to the Debtor's depository institution.
f. The IRS and Greenlake will not be required to file UCC
financing statements or other instruments with any filing authority
to perfect the Adequate Protection Liens or take any other action
to perfect the Adequate Protection Liens, which will be deemed
automatically perfected as of the date of the entry of the Order on
the docket of the chapter 11 case by the Clerk of the Court.
g. The Debtor will provide Greenlake, the IRS and the UST
with:
1. Weekly budget-to-actual figures for its
operations each week on Wednesday for the period ending on the
Friday of the preceding week; and
2. Monthly accountings demonstrating the amount of
materials sold, the location of the properties from which such
materials were extracted, and the amount of consideration obtained
by the Debtor in connection with same within seven days of the last
day of the preceding month.
The Debtor will provide to IRS, Greenlake and all other potential
record lienholders that hold or claim to hold liens on the real
property of the estate certificates of property and casualty
insurance in the same amounts and terms as the Debtor has filed
with the Court, with Debtor confirming that Greenlake will be
reflected on all appropriate certificates as "Greenlake Real Estate
Fund LLC"; such certificates of insurance will name the U.S.
Trustee and Greenlake as a certificate holders and the record
lienholders as loss payees and will provide that the insurance
company will use its best effort to give the UST and each loss
payee at least 14 days' notice of the cancellation or prospective
cancellation of such a policy to each loss payee.
Each potential Record Lienholder and Record Lienholder is granted a
replacement lien in, to and on the Debtor's post-petition property
of the same kinds and types as the collateral in, to and on which
it held valid and enforceable, perfected liens on the Petition Date
as security for any Diminution in Value of the collateral held by
any such Record Lienholder on the Petition Date which shall have
and enjoy the same priority as it had on the Petition Date under
applicable state law. The replacement liens granted:
a. Will be deemed valid and perfected notwithstanding any
requirements of non-bankruptcy law with respect to perfection.
b. Will be supplemental and in addition to any liens held on
the petition date.
A hearing on the further motion for permission to use cash
collateral is set for November 15, 2023, at 2 p.m.
A copy of the court's order and the Debtor's budget is available at
https://urlcurt.com/u?l=UGIYeY from PacerMonitor.com.
The Debtor projects total expenses, on a monthly basis, as
follows:
$178,155 for September 2023;
$147,155 for October 2023; and
$147,155 for November 2023.
About Plourde Sand & Gravel
Plourde Sand & Gravel Co., Inc., owns eight properties located in
New Hampshire having an aggregate total value of $5.34 million.
Plourde Sand filed for Chapter 11 bankruptcy protection (Bankr.
D.N.H. Case No. 23-10039) on Jan. 30, 2023. In the petition signed
by Daniel O. Plourde, sole shareholder and vice president, the
Debtor disclosed $9,192,623 in assets and $8,072,411 in
liabilities.
Judge Bruce A. Harwood oversees the case.
William S. Gannon PLC is the Debtor's legal counsel.
POPULUXE LLC: Court OKs Cash Collateral Access on Final Basis
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida,
Orlando Division, authorized Populuxe, LLC to use cash collateral
on a final basis in accordance with the budget.
The Debtor is permitted to use cash collateral to pay amounts
expressly authorized by the Court, including payments to the
Subchapter V Trustee and the current and necessary expenses as set
forth in the Budget and additional amounts as may be expressly
approved in writing by Amazon.com Services, LLC until the Effective
Date of the Debtor's plan of reorganization.
Amazon.com Services, LLC and the Debtor are authorized to continue
to perform under the Business Solutions Agreement, which governs
the Debtor's ability to sell product on the Amazon Store, in the
ordinary course. In furtherance of the Debtor and Amazon's
performance under the BSA, Amazon acknowledges Mrs. Vanessa Cain as
the authorized representative of the Debtor who will have and be
given access and authority to manage the Debtor's Amazon Seller
Account and performance under the BSA. Amazon is further authorized
to continue netting fees, expenses, and reimbursements from the
Debtor’s sales proceeds.
To satisfy Amazon's right to adequate protection of its interest in
the Debtor's cash collateral for any diminution in value of its
alleged interest in the cash collateral, pursuant to 11 U.S.C.
Sections 361,363, and 552(b), to the extent the Debtor uses cash
collateral, Amazon is granted valid, attached, choate, enforceable,
perfected, and continuing security interests in, and liens upon,
all post-petition assets of the Debtor of the same character and
type, to the same nature, extent, and validity as the items and
encumbrances of Amazon attached to the Debtor's assets prior to the
petition date. Amazon's security interests in, and liens upon, the
PostPetition Collateral will have the same validity as existed
between Amazon, the Debtor, and all other creditors or claimants
against the Debtor's estate on the Petition Date.
The Debtor will maintain insurance coverage for its property in
accordance with the obligations under all applicable loan and
security documents.
A copy of the Court's order is available at
https://urlcurt.com/u?l=YJsK3y from PacerMonitor.com.
About Populuxe LLC
Populuxe, LLC filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. M.D. Fla. Case No. 23-00842) on March
8, 2023, with as much as $1 million in both assets and liabilities.
Aaron R. Cohen has been appointed as Subchapter V trustee.
Judge Grace E. Robson oversees the case.
The Debtor is represented by Daniel A. Velasquez, Esq., at Latham
Luna Eden & Beaudine, LLP.
PRIME CORE: Aug. 23 Deadline Set for Panel Questionnaires
---------------------------------------------------------
The United States Trustee is soliciting members for committee of
unsecured creditors in the bankruptcy case of Prime Core
Technologies Inc., et al.
If a party wishes to be considered for membership on any official
committee that is appointed, it must complete a questionnaire
available at https://rb.gy/q2qzl and return by email it to Joseph
Cudia -- Joseph.Cudia@usdoj.gov -- at the Office of the United
States Trustee so that it is received no later than 4:00 p.m., on
Aug. 23, 2023.
If the U.S. Trustee receives sufficient creditor interest in the
solicitation, it may schedule a meeting or telephone conference for
the purpose of forming a committee.
About Prime Trust
Prime Trust is powering innovation in the digital economy by
providing fintech and digital asset innovators with
infrastructure.
Prime Core and three of its affiliates sought Chapter 11 bankruptcy
protection (Bankr. D.N.J. Case No. 23-11161) on Aug. 16, 2023.
The petitions were signed by Jor Law as interim chief executive
officer. The Hon. J. Kate Stickle presides over the Debtors'
cases.
The Debtors listed $50 million to $100 million in estimated assets
and $100 million to $500 million estimated liabilities.
MCDermott Will & Emery LLP serves as counsel to the Debtors. The
Debtors' financial advisor is M3 Advisory Partners, LP; their
investment banker is Galaxy Digital Partners LLC; and their claims
and noticing agent is Stretto.
PRIME TRUST: Files Voluntary Chapter 11 Bankruptcy Petition
-----------------------------------------------------------
Prime Trust, LLC and certain of its affiliates filed voluntary
petitions for relief under Chapter 11 (the "Chapter 11 Cases") of
the Bankruptcy Code (the "Bankruptcy Code") in the United States
Bankruptcy Court for the District of Delaware (the "Bankruptcy
Court").
The Chapter 11 filing follows the permanent appointment of John
Guedry as Receiver for the Company and the appointment of John
Guedry, John Wilcox, and Michael Wyse as the sole members of a
special restructuring committee (the "Special Committee") vested
with authority to oversee the Company's Chapter 11 Cases by Judge
Susan Johnson of the Eighth Judicial District Court of the State of
Nevada.
The Company, under the supervision and direction of the Special
Committee, continues to manage their businesses as
"debtors-in-possession" under the jurisdiction of the Bankruptcy
Court and in accordance with the applicable provisions of the
Bankruptcy Code and orders of the Bankruptcy Court.
The Company intends to file a number of motions with the Bankruptcy
Court designed to facilitate the Company's orderly evaluation of
all strategic alternatives, including potentially a sale of the
Company's assets and operations as a going concern. It is
anticipated that these motions will include requests to continue to
pay wages and provide benefits to ongoing employees as usual.
The Company believes that the commencement of the Chapter 11 Cases
will provide a transparent and value-maximizing process for the
benefit of the Company's clients and stakeholders.
Additional information, including court filings and other
information related to the court-supervised proceedings will be
available: (a) free of charge by visiting the Debtors'
restructuring website at https://cases.stretto.com/primetrust or
(b) for a fee via PACER by visiting https://pacer.uscourts.gov.
About the Company
Prime Trust powers innovation in the digital economy by simplifying
the complexity of building with digital assets, making it easier
for its customers to build, launch, and scale quickly and
compliantly.
PURE FISHING: S&P Cuts ICR to 'SD' Distressed Debt Restructurings
-----------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on South
Carolina-based fishing equipment manufacturer Pure Fishing to 'SD'
(selective default) from 'CCC'. At the same time, S&P lowered its
issue-level rating on its first-lien term loan to 'D' (default)
from 'CCC'.
S&P said, "In addition, we updated our recovery analysis to reflect
the new debt in Pure Fishing's capital structure that reduces the
residual value of its U.K. subsidiaries, which was previously
available to the first-lien lenders. Therefore, we view the
recovery prospects for the first-lien lenders as moderately worse
and lowered our rounded recovery estimate to 35% from 45%. The '4'
recovery rating is unchanged."
Pure Fishing's financial sponsor, Sycamore Partners Management L.P.
(Sycamore), recently announced it repurchased the company's entire
$255 million second-lien term loan (not rated) at a significant
discount to face value. In addition, it is S&P's understanding
Sycamore repurchased about a quarter of the company's first-lien
term loan through a series of open market transactions at a deep
discount to face value over the past several months.
S&P said, "We plan to raise our issuer credit rating on Pure
Fishing as soon as practical, likely in the next several days, to a
level that reflects the ongoing risk of another potential
restructuring or conventional default.
"The downgrade follows Sycamore's repurchase of Pure Fishing's
second lien term loan and partial repurchase of its first lien term
loan at less than par, which we view as distressed and tantamount
to a default. In late July, Pure Fishing's financial sponsor
repurchased its entire second-lien term loan at about 85% of par
value. We consider the transaction to be a distressed exchange and
tantamount to a default, given the company's ongoing cash burn and
need for additional liquidity this year, as well as its lenders'
receipt of less than par value without adequate offsetting
compensation. We view this transaction by a related party in the
same light as if the obligor made the same offer in a debt
restructuring. That the debt remains outstanding and held by a
related party is irrelevant because the investors participating in
the transaction received less than they were originally promised.
"In addition, despite its use of open market transactions, we view
Sycamore's repurchases of Pure Fishing's first-lien term loan as
distressed and tantamount to a default because we believe the
company is currently in distress, which we reflected in our
previous 'CCC' issuer credit rating. It also reflects our view that
the sponsors' significant aggregate repurchase amount at less than
par constitute a debt restructuring. Therefore, we have lowered our
issue-level rating on the first-lien term loan to 'D' from 'CCC'.
"Pure Fishing continues to struggle because of the retail customer
de-stocking that has affected the entire industry this year and we
expect very weak credit metrics through 2024. We continue to
believe the company's capital structure is unsustainable due to our
expectations for high leverage through 2024, with no room for
operating missteps or unexpected headwinds. We expect Pure
Fishing's cash flow will be insufficient to cover its fixed
charges, which increases the possibility of another restructuring
or a conventional default in the next 12 months. We will update our
base-case forecast and reassess our ratings on Pure Fishing as soon
as practical over the next few days. At that time, we will likely
raise our issuer credit rating to 'CCC'."
RELIABLE CASTINGS: Seeks to Hire Forevisor as Business Advisor
--------------------------------------------------------------
Reliable Castings Corporation seeks approval from the U.S.
Bankruptcy Court for the Southern District of Ohio to employ
Forevisor, LLC as business advisor.
The firm's services include:
(1) providing general business advice;
(2 providing commercial banking or financing advice;
(3) assisting in preparing forecasts and budgets for the
Debtor's Chapter 11 plan of reorganization;
(4) potentially serving as experts in preparing reports and
testifying at court hearings; and
(5) other necessary services.
Forevisor will be compensated at $225 per hour for its services. In
addition, the firm will receive a 1.5 percent success fee in the
event that new commercial financing is obtained.
Bill Cochran, a co-founder of Forevisor, disclosed in a court
filing that the firm is a "disinterested person" as that term is
defined in Section 101(14) of the Bankruptcy Code.
About Reliable Castings Corporation
Reliable Castings Corporation is a supplier of quality aluminum
castings, specializing in aluminum, sand, and permanent mold
castings, prototype castings, mold finishing and repair, and
tooling design and fabrication. The company is based in Sidney,
Ohio.
Reliable Castings filed a petition under Chapter 11, Subchapter V
of the Bankruptcy Code (Bankr. S.D. Ohio Case No. 23-31157) on July
25, 2023, with $1 million to $10 million in both assets and
liabilities. Donald Mallory, Esq., a partner at Wood + Lamping, has
been appointed as Subchapter V trustee.
Judge Guy R. Humphrey oversees the case.
The Debtor tapped Patricia J. Friesinger, Esq., at Coolidge Wall
Co., L.P.A., as legal counsel and Forevisor, LLC as business
advisor.
S&G HOSPITALITY: Seeks Cash Collateral Access
---------------------------------------------
S&G Hospitality, Inc. and affiliates ask the U.S. Bankruptcy Court
for the Southern District of Ohio, Eastern Division, for authority
to use cash collateral and provide adequate protection.
The Debtors require the use of cash collateral to fund ongoing
profitable operations to preserve the going concern value of the
Debtors and to pay necessary administrative expenses of these cases
and U.S. Trustee Fees.
The entities with a purported interest in cash collateral are RSS
COMM 2015-PC1 BL, LLC, Small Business Administration, Itria Funding
LLC, and Knight Capital Funding.
At the Petition Date, the Debtors estimate that the current face
value of accrued, but unpaid, rents, accounts receivable, and
credit card payments that constitute cash collateral in which
lenders allege they hold a lien is approximately $140,000 to
$150,000.
The Debtors submit that the proposed adequate protection package
satisfies the adequate protection standards. As shown from the
budget attached to the proposed final order, the Debtors proposed
usage of cash collateral will result in a greater amount of cash
collateral at the end of the proposed usage period than exists now
because their operations are projected to be profitable for this
time period. Second, the proposed orders also provide protection to
RSS and the SBA by providing for regular cash payments. Third, the
proposed order also provides for adequate protection liens on the
Debtors' other assets (besides avoidance actions) to secure any
adequate protection diminution claims which might be awarded later
under Section 507 of the Bankruptcy Code. This will adequately
protect Itria in the event it is found that they have a secured
claim.
A copy of the motion is available at https://urlcurt.com/u?l=kFnORx
from PacerMonitor.com.
About S&G Hospitality, Inc.
S&G Hospitality, Inc. is part of the traveler accommodation
industry.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Ohio Case No. 23-52859) on August 18,
2023. In the petition signed by Abijit Vasani, president, the
Debtor disclosed up to $10 million in assets and up to $1 million
in liabiities.
Judge Mina Nami Khorrami oversees the case.
David Beck, Esq., at Carpenter Lipps LLP, reprents the Debtor as
legal counsel.
SARVER REALTY: Seeks to Hire Calaiaro Valencik as Legal Counsel
---------------------------------------------------------------
Sarver Realty Regent Square, LLC seeks approval from the U.S.
Bankruptcy Court for the Western District of Pennsylvania to employ
Calaiaro Valencik as its legal counsel.
The firm will render these services:
(a) represent the Debtor at the meeting of creditors;
(b) represent the Debtor in relation to acceptance or
rejection of executory contracts;
(c) advise the Debtor of its rights and obligations in
connection with its Chapter 11 case;
(d) represent the Debtor in relation to any motions to convert
or dismiss the case;
(e) represent the Debtor in relation to any motions for relief
from stay filed by its creditors;
(f) prepare a Chapter 11 plan for the Debtor;
(g) prepare any objections to claims filed in the Debtor's
bankruptcy case; and
(h) represent the Debtor in general.
The hourly rates of the firm's counsel and staff are as follows:
Donald R. Calaiaro $395
David Z. Valencik $350
Andrew K. Pratt $300
Monica L. Locke $250
Emily M. Balla $250
Paralegal $100
Calaiaro Valencik received a retainer of $5,000 from the Debtor.
Donald Calaiaro, Esq., an attorney at Calaiaro Valencik, disclosed
in a court filing that his firm is a "disinterested person" as that
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Donald R. Calaiaro, Esq.
Calaiaro Valencik
938 Penn Avenue, Suite 501
Pittsburgh, PA 15222
Telephone: (412) 232-0930
Facsimile: (412) 232-3858
Email: dcalaiaro@c-vlaw.com
About Sarver Realty Regent Square
Sarver Realty Regent Square, LLC filed voluntary Chapter 11
petition (Bankr. W.D. Pa. Case No. 23-21646) on Aug. 4, 2023, with
$1 million to $10 million in both assets and liabilities. Matthew
H. Moraitis, managing member, signed the petition.
Donald R. Calaiaro, Esq., at Calaiaro Valencik serves as the
Debtor's counsel.
SCRIBEAMERICA LLC: Guggenheim SOF Marks $2.4MM Loan at 44% Off
--------------------------------------------------------------
Guggenheim Strategic Opportunities Fund has marked its $2,461,904
loan extended to ScribeAmerica Intermediate Holdco LLC
(Healthchannels) to market at $1,388,514 or 56% of the outstanding
amount, as of May 31, 2023, according to Guggenheim SOF'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.
Guggenheim SOF is a participant in a (1 Month USD LIBOR + 5.25%,
Rate Floor: 6.25%) to ScribeAmerica Intermediate Holdco LLC
(Healthchannels). The loan accrues interest at a rate of 10.49% per
annum. The loan matures on April 3, 2025.
Guggenheim Strategic Opportunities Fund was organized as a Delaware
statutory trust on November 13, 2006. Guggenheim SOF is registered
as a diversified, closed-end management investment company under
the Investment Company Act of 1940, as amended.
ScribeAmerica Intermediate Holdco, LLC does business as
HealthChannels, a provider of medical scribing services to
hospitals and physician staffing companies.
SHO HOLDING I: Guggenheim SOF Marks $424,000 Loan at 28% Off
------------------------------------------------------------
Guggenheim Strategic Opportunities Fund has marked its $424,000
loan extended to SHO Holding I Corp to market at $303,160 or 72% of
the outstanding amount, as of May 31, 2023, according to Guggenheim
SOF'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.
Guggenheim SOF is a participant in a Bank Loan to SHO Holding I
Corp. The loan accrues interest at a rate of 10.09% (3 Month USD
LIBOR + 5.00%, Rate Floor: 6.00%) per annum. The loan matures on
April 27, 2024.
Guggenheim Strategic Opportunities Fund was organized as a Delaware
statutory trust on November 13, 2006. Guggenheim SOF is registered
as a diversified, closed-end management investment company under
the Investment Company Act of 1940, as amended.
SHO Holding I Corp operates as a holding company. The Company,
through its subsidiaries, designs and manufactures athletic and
non-athletic footwear products.
SHREE RADHA KRISHNA: Case Summary & Two Unsecured Creditors
-----------------------------------------------------------
Debtor: Shree Radha Krishna, LLC
10548 132nd St
South Richmond Hill, NY 11419-3116
Business Description: The Debtor is the owner of real estate
located at 12604 133rd Ave, South Ozone
Park, NY valued at $900,000.
Chapter 11 Petition Date: August 22, 2023
Court: United States Bankruptcy Court
Eastern District of New York
Case No.: 23-42976
Judge: Hon. Nancy Hershey Lord
Debtor's Counsel: Allen A Kolber, Esq.
ALLEN KOLBER
134 Route 59 Ste A
Suffern, NY 10901-4917
Tel: (845) 918-1277
Fax: (845) 369-1618
Email: akolber@kolberlegal.com
Total Assets: $900,000
Total Liabilities: $1,591,273
The petition was signed by Nadira Sharma as sole member.
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/N2J6PYQ/SHREE_RADHA_KRISHNA_LLC__nyebke-23-42976__0001.0.pdf?mcid=tGE4TAMA
SIGNET JEWELERS: Fitch Affirms BB LongTerm IDR, Outlook Stable
--------------------------------------------------------------
Fitch Ratings has affirmed Signet Jewelers Limited's and Signet
Group Limited's ratings, including their Long-Term Issuer Default
Ratings (IDR) at 'BB'. The Rating Outlook is Stable.
Signet's ratings reflect its leading market position as a U.S.
specialty jeweler with an approximately 10% share of a highly
fragmented industry. The ratings consider Signet's good execution
both from a topline and a margin standpoint, which support Fitch's
longer-term expectations of low-single digit revenue and EBITDA
growth.
Although there is some near-term pressure to operating results
given ongoing shifts in consumer behavior, difficult comparisons,
and global macroeconomic uncertainty, Fitch expects that Signet
will be able to sustain EBITDAR leverage (adjusted debt/EBITDAR,
capitalizing leases at 8x) in the low-4x range, as appropriate for
the 'BB' rating.
KEY RATING DRIVERS
Good Medium-Term Performance: For the LTM period ended April 29,
2023, Signet generated USD7.67 billion in revenue and approximately
USD970 million in EBITDA relative to USD6.1 billion in revenue and
USD504 million in EBITDA in 2019. Signet's results have been aided
by an overall shift in consumer spending habits in 2020 and 2021
toward goods, including jewelry. Beyond these industry tailwinds,
Signet has benefitted from the introduction of a number of
strategies in recent years to improve same store sales (SSS),
including increasing the pace of product innovation, and investing
in its omnichannel platform.
Fitch expects organic sales could decline in the low-double digits
in 2023, due in-part to some pulled-forward demand in the jewelry
category during 2020-2021 and consumers refocusing budgets toward
services, including travel and other experiences. Approximately 50%
of Signet's sales are in the bridal category and the company has
stated that 2023 topline results are challenged given an ongoing
drop in engagements, although it expects engagement trends to
improve into 2024.
Beginning in 2024, Fitch projects Signet's revenue could stabilize
around USD7.2 billion-USD7.3 billion range, as consumer trends
normalize versus 2019 revenue levels of USD6.1 billion. The company
has closed approximately 15% of its store base since 2019 and the
volume has been more than offset by the acquisitions of Diamond
Direct in 4Q21 and Blue Nile in 3Q22, which together contributed
approximately USD1.0 billion in annualized sales, and the
improvement in its base business.
Focused Strategy Supports Margin Profile: Signet's EBITDA margins
are expected to trend in the upper-10% range beginning in 2023,
well above the low-8% seen in pre-pandemic 2019, yielding EBITDA in
the upper USD700 million range. In recent years, Signet has been
focused on structural cost reductions, including consolidation of
distribution centers and sourcing optimization. Additionally,
Signet's store fleet optimization efforts yielded a gross margin
benefit of over 500 bps.
During 2018-2022, the company achieved over USD600 million in
annualized savings across a number of functions. In 2023, the
company expects to achieve an additional USD225 million-USD250
million in cost savings. Fitch expects the company to redeploy a
significant level of these savings into topline investments as it
has in the past.
Moderate Leverage; Strong FCF: Signet currently has approximately
USD800 million of debt outstanding. The company has a public
leverage target of below 2.75x (capitalizing rent at 5x;
Fitch-adjusted equivalent is the low-4.0x range). Fitch projects
that, absent a debt-financed transaction, Signet's leverage could
trend in the high-3x range across the forecast period, below the
mid-to-upper 5x range seen pre-pandemic based on EBITDA growth and
debt reduction. Per Signet's leverage calculations, this equates to
leverage trending in the mid-2x range.
With USD656 million of cash as of April 29, 2023, and positive FCF
expected over the rating horizon, Signet has good liquidity and
financial flexibility. The company could deploy FCF generation
toward a combination of debt reduction, share repurchases,
dividends, and acquisitions. Signet repurchased approximately
USD376 million in shares in 2022 and repurchased an additional
USD39 million in 1Q23. Signet has recently been acquisitive,
purchasing Diamond Direct in November 2021 for USD490 million and
Blue Nile in August 2022 for USD360 million. Both of these
transactions were funded with cash on hand.
Leading Jeweler Position: Signet is the leading U.S. specialty
jeweler with an approximately 10% share of a fragmented USD65
billion market. The company ended 2022 with 2,808 stores across
well-known brands like Kay, Jared, Zales and Banter by Piercing
Pagoda in the U.S.; Peoples in Canada; and H.Samuel and Ernest
Jones in the U.K.
Signet benefits from its scale and ability to invest in its
omnichannel platform. If executed effectively, these investments
could provide Signet competitive advantages against smaller and
independent jewelers with limited capacity to invest. Longer term,
Signet's ability to grow its share of the fragmented mid-tier
jewelry market will depend on execution against its omnichannel and
other growth initiatives.
Parent Subsidiary Linkage: Fitch's analysis includes a strong
subsidiary/weak parent approach between the parent, Signet Jewelers
Limited and its subsidiaries Signet UK Finance, PLC and Signet
Group Limited. Fitch assesses the quality of the overall linkage as
high, which results in an equalization of IDRs.
DERIVATION SUMMARY
Signet's 'BB'/Stable ratings consider Signet's good execution both
from a topline and a margin standpoint, which support Fitch's
longer-term expectations of low-single digit revenue and EBITDA
growth. The rating reflects its leading market position as a U.S.
specialty jeweler with an approximately 10% share of a highly
fragmented industry. Fitch expects that Signet will be able to
sustain EBITDAR leverage in the low-4x range, as appropriate for
the 'BB' rating.
Similarly rated peers include: Capri Holdings Limited (BBB-/RWN),
Levi Strauss & Co. (BB+/Stable) and Samsonite International S.A.
(BB/Stable).
Capri's 'BBB-'/Rating Watch Negative (RWN) rating reflects its
strong positioning in the U.S. handbag market and, good growth at
its various brands along with its demonstrated commitment to debt
reduction. The rating also considers the fashion risk inherent in
the accessories and apparel space. The RWN reflects the potential
for a sustained increase in leverage, pro forma for the acquisition
by Tapestry, above Fitch's current expectations for EBITDAR
leverage to sustain in the low-3x range.
Levi's 'BB+'/Stable rating considers the company's good execution
from a top-line and margin standpoint, which support Fitch's
longer-term expectations of low-single-digit revenue and EBITDA
growth. Although operating results could experience some near-term
pressure given ongoing shifts in consumer behavior, difficult
comparisons and global macroeconomic uncertainty, Fitch expects
that Levi will maintain EBITDAR leverage below 3.5x over time.
Levi's ratings reflect its position as one of the world's largest
branded apparel manufacturers, with broad channel and geographic
exposure, while also considering the company's narrow focus on the
Levi brand and in bottoms.
Samsonite's 'BB'/Stable rating reflects the company's position as
the world's largest travel luggage company, with strong brands and
historically good organic growth. The rating recognizes Samsonite's
strong topline rebound, following weak pandemic-era performance in
2020, led by a continued strong recovery in global travel. This,
alongside effective cost reductions and the company's progress on
paying down pandemic-era debt, has increased Fitch's confidence
that Samsonite will be able to sustain EBITDA in the low-USD600
million range and EBITDAR leverage (adjusted debt/EBITDAR,
capitalizing leases at 8x) in the low-4.0x range beginning in 2023,
as appropriate for the 'BB' rating.
KEY ASSUMPTIONS
-- Signet's revenue is expected to decline in the high-single
digits in 2023 as the incremental revenue benefit of the Blue
Nile acquisition, which was completed in August 2022, only
partially offsets a shift in consumer spending patterns toward
services and away from goods like jewelry. Thereafter, revenue
is expected to grow in the low-single digit range, supported by
the company's topline initiatives, including its omnichannel
focus. Revenue is expected to trend in the USD7.2 billion-
USD7.3 billion range, beginning in 2024, relative to 2019
levels of USD6.1 billion. Across 2021 and 2022, the company
made two sizable acquisitions of Diamond Direct and Blue Nile,
which, together, accounted for approximately USD1.0 billion in
incremental revenue.
-- EBITDA is expected to decline from USD1.0 billion in 2022 to
around approximately USD770 million in 2023, largely driven by
the high-single-digit top-line decline expected for the year,
as well as heightened markdown activity. EBITDA is expected to
grow modestly beginning in 2024 in the USD760 million-USD780
million range relative to 2019 levels of USD504 million. EBITDA
margins could trend in the high-10%, low-11% range beginning
2024, higher than the low-8% range in 2019 given strong top-
line growth and expense management initiatives.
-- Fitch expects 2023 FCF to be around USD290 million, below the
USD590 million generated in 2022 given EBITDA declines and some
reversal in working capital benefits. FCF could be in the
USD380 million-USD400 million range annually beginning 2024
assuming modest EBITDA expansion and neutral working capital.
-- Signet could use its strong cash balances of USD656 million as
of April 2023 and good FCF to reinvest in its business,
continue share buybacks, and reduce debt over the next two to
three years. The company's USD147 million of unsecured notes
matures in June 2024. In 2021 and 2022, the company deployed
approximately USD900 million in cash toward its Diamond Direct
and Blue Nile acquisitions.
-- EBITDAR leverage (capitalizing leases at 8.0x) is expected to
trend in the high-3.0x range across the forecast, lower than
the 5.4x level seen in 2019 based on EBITDA expansion and debt
reduction. Fitch recognizes the company could undertake capital
structure actions to increase adjusted leverage to the low-4x
range, in concert with its publicly articulated financial
policy.
-- The company's unsecured notes are a fixed rate instrument. The
revolving credit facility is floating rate (SOFR + 1.5%).
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- A positive rating action could occur if the company revised its
financial policy thereby increasing Fitch's confidence of
Signet maintaining EBITDAR leverage (capitalizing leases at 8x)
below 4.0x, while also performing in line with Fitch's current
base case forecast.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- A downgrade could occur if operating performance is below
expectations, yielding EBITDA declines toward USD500 million
and EBITDAR leverage (capitalizing leases at 8.0x) sustained
above 4.5x.
LIQUIDITY AND DEBT STRUCTURE
Strong Liquidity: As of April 29, 2023, Signet had USD655.9 million
in cash and cash equivalents and no borrowings on its USD1.5
billion ABL facility due July 2026, with USD1.3 billion in
available borrowing capacity.
As of April 29, 2023, the company's capital structure consists of
USD147.5 million in unsecured notes due June 2024 and USD654.3
million of preferred equity, which receives 0% equity credit.
Permanence in the capital structure -- in this case permanence of
the convertible preferreds -- is necessary for equity credit
recognition. Fitch views these securities as not conducive to being
maintained as a permanent part of the capital structure, with the
main purpose being to support the company's stock price. Given
current cash balances and cash flow generation, the company could
pay-off outstanding debt maturities when they come due using cash.
The company has a public leverage target of below 2.75x adjusted
leverage. The target capitalizes leases at 5.0x, equating to a
target of approximately 4.0x on Fitch's leverage calculation, which
capitalizes rent at 8.0x.
RECOVERY CONSIDERATIONS
Fitch does not employ a waterfall recovery analysis for issuers'
assigned ratings in the 'BB' category. The further up the
speculative-grade continuum a rating moves, the more compressed the
notching between the specific classes of issuances becomes. Fitch
has affirmed Signet's secured ABL facility at 'BBB-'/'RR1'
indicating outstanding recovery prospects (91% to 100%). Fitch has
affirmed the unsecured notes at 'BB'/'RR4' indicating average
recovery prospects (31% to 50%). Fitch has affirmed the preferred
equity at 'BB-'/'RR5', indicating below-average recovery prospects
(11% to 30%).
ISSUER PROFILE
Signet, incorporated in Bermuda, is the world's largest diamond
jewelry retailer, with 2,808 stores and kiosks (as of the end of
2022) in the U.S., U.K. and Canada operating under a variety of
national and regional brands. Signet's largest brands include Kay
(36% of 2022 sales), Zales (18%), and Jared (17%), all of which
operate in North America.
SUMMARY OF FINANCIAL ADJUSTMENTS
Historical and projected EBITDA is adjusted to add back non-cash
stock-based compensation expense and exclude non-recurring charges.
For the year ended Jan. 28, 2023, Fitch added back USD42.0 million
in stock-based compensation expense. Fitch has adjusted the
historical and projected debt by adding 8x annual gross rent
expense.
ESG CONSIDERATIONS
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
ENTITY/DEBT RATING RECOVERY PRIOR
----------- ------ -------- -----
Signet Group Limited LT IDR BB Affirmed BB
senior secured LT BBB- Affirmed RR1 BBB-
Signet Jewelers Ltd. LT IDR BB Affirmed BB
preferred LT BB- Affirmed RR5 BB-
Signet UK Finance plc
senior unsecured LT BB Affirmed RR4 BB
SIMPLETECH REPAIR: Seeks to Hire Maxsen Champion as Legal Counsel
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Simpletech Repair, LLC seeks approval from the U.S. Bankruptcy
Court for the Northern District of New York to employ Maxsen
Champion, Esq., an attorney practicing in Fayetteville, N.Y., to
handle its Chapter 11 case.
Mr. Champion will be compensated at $250 per hour for his
services.
The retainer fee is $5,000.
Mr. Champion disclosed in a court filing that he is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
Mr. Champion holds office at:
Maxsen D. Champion, Esq.
8578 East Genesee Street
Fayetteville, NY 13066
Telephone: (315) 664-2550
Email: max2040@live.com
About Simpletech Repair
Simpletech Repair, LLC filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. N.D.N.Y. Case No.
23-30542) on Aug. 4, 2023, with up to $500,000 in assets and up to
$1 million in liabilities. Paul Levine, Esq., at Lemery Greisler,
LLC has been appointed as Subchapter V trustee.
Judge Wendy A. Kinsella oversees the case.
Maxsen D. Champion, Esq., represents the Debtor as legal counsel.
SPECIALTY DENTAL: Court Directs U.S. Trustee to Appoint PCO
-----------------------------------------------------------
Judge Shad Robinson of the U.S. Bankruptcy Court for the Western
District of Texas directed the U.S. Trustee for Region 6 to appoint
a patient care ombudsman for Specialty Dental Holdings, LLC and its
debtor affiliates.
The bankruptcy judge finds that the provisions of Section 333(a)(1)
of the Bankruptcy Code for appointment of a patient care ombudsman
apply to the companies after having filed bankruptcy petition,
indicating that the companies operate health care businesses.
A patient care ombudsman refers to an individual appointed in
healthcare bankruptcies to ensure the safety of patients. The PCO
monitors the quality of patient care and represents the interest of
the patients of the healthcare debtor.
About Specialty Dental Holdings
Specialty Dental Holdings, LLC filed Chapter 11 petition (Bankr.
W.D. Texas Case No. 23-10498) on July 10, 2023, with as much as
$50,000 in assets and $500,001 to $1 million in liabilities.
Judge Shad Robinson oversees the case.
Stephen W. Sather, Esq., at Barron & Newburger, PC is the Debtor's
legal counsel.
SUSTAITA ENTERPRISES: Case Summary & 20 Top Unsecured Creditors
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Debtor: Sustaita Enterprises, LLC
316 Ezell Dr.
Desoto, TX 75115
Business Description: The Debtor is part of the general freight
trucking industry.
Chapter 11 Petition Date: August 21, 2023
Court: United States Bankruptcy Court
Northern District of Texas
Case No.: 23-31812
Debtor's Counsel: Brandon Tittle, Esq.
GLAST, PHILLIPS & MURRAY, P.C.
14801 Quorum Dr., Ste. 500
Dallas, tX 75254
Tel: 972-419-7186
Email: btittle@gpm-law.com
Debtor's
Financial
Advisor: LANE GORMAN TRUBITT, LLC
Total Assets as of July 9, 2023: $3,969,806
Total Liabilities as of July 9, 2023: $3,589,563
The petition was signed by Carlos Sustaita as president and
member.
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/OVKEXDY/Sustaita_Enterprises_LLC__txnbke-23-31812__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/OLEQYJA/Sustaita_Enterprises_LLC__txnbke-23-31812__0001.0.pdf?mcid=tGE4TAMA
T-ROLL CONSTRUCTION: Seeks Sept. 4 Extension to File Plan
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T-Roll Construction, Inc., filed a second motion to extend by 14
days its deadline to file an amended plan of reorganization.
The Debtor in early August won approval of its motion to extend
until Aug. 21, 2023, its the deadline to file its Amended Plan
To recall, the Debtor on June 22, 2023, filed its initial plan of
reorganization. A hearing occurred on July 11, 2023 wherein the
Court denied confirmation of the proposed plan. The Debtor was
ordered to file an Amended Plan, with the Court's suggestions, by
August 7, 2023.
Immediately thereafter, the Debtor's counsel, Stephen E. Berken,
sought the assistance of counsel better versed than the undersigned
in drafting chapter 11 plans. Counsel held several discussions
with attorney Brett Weiss, Esq., located in the state of Maryland.
Counsel discussed at length the contents of the plan, including
equipment to be retained, surrendered, interest rates, disposable
income, a surfeit of typographical errors in the first draft, and
the like.
During counsels' recent exchanges, Mr. Weiss shared that his wife
is quite ill, had major surgery, but that he could proceed with the
T-Roll case as discussed.
Mr. Weiss has applied for admission with the District of Colorado,
though presently it indicates just that the application "is
pending."
The Debtor has a draft of an amended plan that is approximately 80%
done (and has been completely rewritten). The Debtor desires to
circulate it to the Sub-Chapter V Trustee, Joli A. Lofstedt and the
United States Trustee's Office as well as major creditors before
filing. Discussions with Commercial Credit Group, Inc.'s counsel
hopefully will result in a consensual treatment of this objecting
creditor.
Previously, counsel for the single largest secured creditor (i.e.,
CCG) filed a certificate of non-contested matter as to the
stipulation for use of cash collateral and payment of adequate
protection. In connection therewith, Debtor successfully paid his
first adequate protection installment of $20,000 to CCG.
The Sub-Chapter V Trustee, Joli A. Lofstedt has indicated she does
not oppose the request for an extension. Likewise, Timothy Swanson,
counsel for CCG does not oppose the request.
The Debtor thus requests until Sept. 4, 2023 to file an amended
plan.
About T-Roll Construction
T-Roll Construction, Inc., sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D. Colo. Case No. 23-11154) on
March 24, 2023. In the petition signed by Seth Cvancara, owner and
chief executive officer, the Debtor disclosed up to $10 million in
both assets and liabilities.
Judge Elizabeth E. Brown oversees the case.
Stephen Berken, Esq., at Berken Cloyes, PC, is the Debtor's legal
counsel.
TGP HOLDINGS: Guggenheim SOF Marks $376,922 Loan at 18% Off
-----------------------------------------------------------
Guggenheim Strategic Opportunities Fund has marked its $376,922
loan extended to TGP Holdings LLC to market at $310,056 or 82% of
the outstanding amount, as of May 31, 2023, according to Guggenheim
SOF'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.
Guggenheim SOF is a participant in a Bank Loan to TGP Holdings LLC.
The loan accrues interest at a rate of 8.40% (1 Month USD LIBOR +
3.25%, Rate Floor: 4.00%) per annum. The loan matures on June 29,
2028.
Guggenheim Strategic Opportunities Fund was organized as a Delaware
statutory trust on November 13, 2006. Guggenheim SOF is registered
as a diversified, closed-end management investment company under
the Investment Company Act of 1940, as amended.
TGP Holdings manufactures household appliances.
TKEES INC: Seeks to Hire Prager Metis CPAs as Accountant
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TKEES, Inc. seeks approval from the U.S. Bankruptcy Court for the
Southern District of Florida to employ Prager Metis CPAs, LLC.
The Debtor requires an accountant to:
(a) prepare and file the Debtor's 2022 federal and certain
state and local tax returns;
(b) prepare and review the Debtor's updated financial
documents for 2021; and
(c) prepare and review the Debtor's updated financial
documents for 2021 and 2022.
The firm has agreed to be compensated as follows:
(a) $16,000, with an $8,000 retainer due upfront and payable
upon receipt for 2022 tax returns preparation;
(b) $20,000 due upfront for 2021 updated financials
preparation; and
(c) $22,500, with a $11,250 retainer due upfront and payable
upon receipt for 2022 updated financials preparation.
As set forth in the engagement letters, an additional 5 percent
technology or administration fee will be owed by the Debtor to the
firm for each engagement to cover processing and miscellaneous
expenses.
Stuart Mayer, CPA, a member of Prager Metis CPAs, disclosed in a
court filing that his firm is a "disinterested person" as that term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Stuart Mayer, CPA
Prager Metis CPAs, LLC
14 Penn Plaza, 18th Floor
New York, NY 10122
Telephone: (212) 643-0099
Facsimile: (212) 947-3878
About TKEES Inc.
TKEES, Inc. is a manufacturer and seller of sandals and flip flops
for women.
TKEES, Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 23-12126) on March 20,
2023, with $1 million to $10 million in both assets and
liabilities. Jesse Burnett, president, signed the petition.
Judge Scott M. Grossman oversees the case.
The Debtor tapped Bradley S. Shraiberg, Esq., at Shraiberg Page
P.A., as legal counsel and Stuart Mayer, CPA, at Prager Metis CPAs,
LLC as accountant.
TRANSCENDIA HOLDINGS: Guggenheim SOF Marks $1.7MM Loan at 26% Off
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Guggenheim Strategic Opportunities Fund has marked its $1,708,067
loan extended to Transcendia Holdings, Inc to market at $1,268,957
or 74% of the outstanding amount, as of May 31, 2023, according to
Guggenheim SOF'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.
Guggenheim SOF is a participant in a Bank Loan to Transcendia
Holdings, Inc. The loan accrues interest at a rate of 8.65% (1
Month USD LIBOR + 3.50%, Rate Floor: 4.50%) per annum. The loan
matures on May 30, 2024.
Guggenheim Strategic Opportunities Fund was organized as a Delaware
statutory trust on November 13, 2006.Guggenheim SOF is registered
as a diversified, closed-end management investment company under
the Investment Company Act of 1940, as amended.
Transcendia Holdings, Inc. is a provider of engineered specialty
films materials across a range of end-markets. The company
manufactures specialty films by extrusion of resin or converting
film for specific customer applications.
TRANSIT PHYSICAL: No Patient Care Concern, 1st PCO Report Says
--------------------------------------------------------------
Tamar Terzian, the court-appointed patient care ombudsman, filed
with the U.S. Bankruptcy Court for the Central District of
California her first interim report regarding the quality of
patient care provided at Transit Physical Therapy PC's facilities.
The PCO finds that all locations have adequate staff and providers
on site to meet the standard of care for each patient. There is no
medication at the clinics, and the clinics are clean with adequate
equipment for patient use applicable for physical, speech,
occupational and neurological physical therapy.
Specifically, each clinic has multiple treatment exam rooms,
treatment tables, exercise machines and tools utilized by
therapists to implement the patient care plan and goals.
Additionally, at each site the clinics have sufficient cleaning
supplies to sanitize the treatment tables before and after patient
use.
The PCO observes that medical records are thoroughly maintained
with patients ID, insurance, authorizations, initial reports,
progress reports, and treatment plans or goals for each patient.
She observed patient care and treatment. The clinics are clean with
ample equipment for patient care. There are no pending complaints
by patients or staff. No concerns are noted.
The PCO noted that Transit Physical Therapy continues to provide
patient care in a manner that meets the required standards of care.
She recommended that Transit Physical Therapy notifies her of any
changes in staffing or in the services that it provides to patients
the closure of any locations or complaints by patients throughout
the reporting periods.
A copy of the first interim report is available for free at
https://urlcurt.com/u?l=t054pe from PacerMonitor.com.
The ombudsman may be reached at:
Tamar Terzian, Esq.
Terzian Law Group
1122 E. Green Street
Pasadena, CA 91106
Telephone: (818) 242-1100
Facsimile: (818) 242-1012
Email: tterzian@terzlaw.com
About Transit Physical Therapy
Transit Physical Therapy, PC offers personal rehabilitation
services including physical therapy, occupational therapy, and
speech and language pathology. It is based in San Bernardino,
Calif.
Transit Physical Therapy sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. C.D. Calif. Case No. 23-11057) on
March 20, 2023, with $2,700,328 in assets and $4,147,237 in
liabilities. Mitree Michael Piromgraipakd, president, signed the
petition.
Judge Scott H. Yun oversees the case.
Todd Turoci, Esq., at the Turoci Firm, represents the Debtor as
legal counsel.
UNDER THE HOOD: Files Emergency Bid to Use Cash Collateral
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Under the Hood, LLC, dba, RT .44 Auto Repair & Towing asks the U.S.
Bankruptcy Court for the Northern District of Ohio, Eastern
Division, for authority to use cash collateral.
The Debtor proposes to use cash collateral for purposes which
include the following:
(a) Care, maintenance and preservation of the Debtor's assets;
(b) Payment of necessary payroll and other business expenses;
(c) Purchase of goods and services, including inventory; and
(d) Continued business operations.
The Debtor requests authority to use cash collateral immediately to
fund the operating expenses necessary to continue the operation of
its business and to maintain the estate, to acquire inventory, to
maximize the return on its assets, and to otherwise avoid
irreparable harm and injury to its business and the estate.
There is insufficient time for a full hearing to be held before the
Debtor must use cash collateral. If the Motion is not considered on
an expedited basis and if the Debtor is denied the ability to
immediately use cash collateral, there will be a direct and
immediate material and adverse impact on the continuing operation
of the Debtor's business and on the value of its assets.
As adequate protection, the Debtor suggests replacement liens and a
cash payment of $2000 per month.
A copy of the motion is available at https://urlcurt.com/u?l=gPo1FW
from PacerMonitor.com.
About Under the Hood, LLC
Under the Hood, LLC is in the business of operating an automotive
repair and towing service in Chardon, Ohio.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ohio Case No. 23-12834-aih) on August
17, 2023. In the petition signed by Anthony Longhitano, III,
president, the Debtor disclosed up to $50,000 in both assets and
liabilities.
Glenn E. Forbes, Esq., at Forbes Law LLC, represents the Debtor as
counsel.
VALCOUR LLC: Guggenheim SOF Marks $650,000 Loan at 15% Off
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Guggenheim Strategic Opportunities Fund has marked its $650,000
loan extended to Valcour Packaging LLC to market at $549,789 or 85%
of the outstanding amount, as of May 31, 2023, according to
Guggenheim SOF'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.
Guggenheim SOF is a participant in a Bank Loan to Valcour Packaging
LLC. The loan matures on October 4, 2028.
Guggenheim Strategic Opportunities Fund was organized as a Delaware
statutory trust on November 13, 2006. The Fund is registered as a
diversified, closed-end management investment company under the
Investment Company Act of 1940, as amended.
Valcour Packaging LLC, doing business as Mold-Rite Plastics,
provides high-quality plastic packaging components.
VECTOR UTILITIES: Court OKs Cash Collateral Access Thru Aug 31
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The U.S. Bankruptcy Court for the Southern District of Texas,
Laredo Division, authorized Vector Utilities, LLC to use cash
collateral on an interim basis through August 31, 2023.
The Debtor is indebted to the Small Business Administration and has
two lawsuits from MW GRP CAP and Balboa Capital Corporation.
The Debtor consents to giving the Small Business Administration a
replacement lien as adequate protection.
A continued hearing on the matter is set for August 31 at 9:30
a.m.
A copy of the order is available at https://urlcurt.com/u?l=sNcFSj
from PacerMonitor.com.
About Vector Utilities, LLC
Vector Utilities, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 23-60040) on July
16, 2023. In the petition signed by Griselda C. Gaytan, managing
member, the Debtor disclosed up to $10 million in both assets and
liabilities.
Judge David R. Jones oversees the case.
Margaret M. McClure, Esq., at Law Office of Margaret M. McClure,
represents the Debtor as legal counsel.
VIEWRAY INC: Seeks to Tap Cravath Swaine & Moore as Special Counsel
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ViewRay, Inc. and ViewRay Technologies, Inc. seek approval from the
U.S. Bankruptcy Court for the District of Delaware to employ
Cravath, Swaine & Moore, LLP as special counsel.
The firm will render these services:
(a) advise the Debtors with respect to the marketing of their
business and assets for sale;
(b) advise the Debtors with respect to the due diligence
process for potential purchasers of their business or assets;
(c) advise the Debtors with respect to any legal issues that
may arise in connection with the sale transaction;
(d) prepare for and participate in the auction for the sale
whereby the business or all or substantially all, or a portion, of
the assets of the Debtors will be sold to the highest or otherwise
best bidder;
(e) draft and negotiate all documents relating to the sale;
(f) coordinate the closing of the sale (and the transactions
related thereto);
(g) advise the Debtors with respect to post-closing issues
arising from or relating to the sale (or any transaction resulting
therefrom); and
(h) such other specific services as may be requested by the
Debtors from time to time relating to transactional and corporate
matters in these Chapter 11 cases.
Cravath received from the Debtors payments totaling $723,129.12 for
professional services performed and expenses incurred.
The hourly rates of the firm's counsel and staff are as follows:
Partners $1,405 - $2,060
Of Counsel $1,375 - $2,060
Associates $745 - $1,575
Paralegals $255 - $355
In addition, the firm will seek reimbursement for expenses
incurred.
Prior to the petition date, the Debtors paid Cravath retainers of
$250,000 for professional services and expenses.
Minh Van Ngo, Esq., a partner at Cravath, disclosed in a court
filing that the firm is a "disinterested person" as that term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Minh Van Ngo, Esq.
Cravath, Swaine & Moore LLP
Worldwide Plaza
825 Eighth Avenue
New York, NY 10019
Telephone: (212) 474-1000
Facsimile: (212) 474-3700
Email: newyork@cravath.com
About ViewRay Inc.
ViewRay, Inc. designs, manufactures, and markets the MRIdian
MRI-guided Radiation Therapy System. MRIdian is built upon a
proprietary high-definition magnetic resonance imaging system
designed from the ground up to address the unique challenges, and
clinical workflow for advanced radiation oncology. The MRIdian
MRI-guided Radiation Therapy System integrates diagnostic-quality
MR imaging with radiation therapy delivery to enable on-table
adaptive treatments with real-time tissue tracking and automatic
beam gating.
ViewRay, Inc. and its affiliate ViewRay Technologies, Inc. sought
protection under the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case
No. 23-10935) on July 16, 2023. In the petition signed by Paul
Zieglerm chief executive officer, the Debtors disclosed $233
million assets and $75 million in liabilities.
The Debtors tapped Faegre Drinker Biddle & Reath, LLP as bankruptcy
counsel; Cravath, Swane and Moore, LLP as special corporate
counsel; Berkeley Research Group, LLC as financial advisor; and B.
Riley Securities, Inc. as investment banker. Stretto, Inc. is the
notice, claims, balloting and administrative agent.
VITAL PHARMA: Taps Gregg Metzger as 'Ordinary Course' Professional
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Vital Pharmaceuticals, Inc. and its affiliates seek approval from
the U.S. Bankruptcy Court for the Southern District of Florida to
employ Gregg H. Metzger, LLC as an "ordinary course" professional.
The Debtors require Metzger's services in connection with the
winddown of their businesses.
Metzger has agreed to provide those services at the rate of $350
per hour plus reasonable and documented expenses.
Mr. Metzger disclosed in a court filing that his firm is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached at:
Gregg H. Metzger, Esq.
Gregg H. Metzger, LLC
4 N. Federal Highway #PH-872
Dania Beach, FL 33004
Telephone: (954) 483-5773
Email: gmetzger@metzgerlegal.com
About Vital Pharmaceuticals
Since 1993, Florida-based Vital Pharmaceuticals, Inc., doing
business as Bang Energy and as VPX Sports, has developed
performance beverages, supplements, and workout products to fuel
high-energy lifestyles. VPX Sports is the maker of Bang energy
drinks, among other consumer products.
Vital Pharmaceuticals, Inc., along with certain of its domestic
subsidiaries and affiliates, filed voluntary petitions for
protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D.
Fla. Lead Case No. 22-17842) on Oct. 10, 2022.
VPX estimated $500 million to $1 billion in assets and liabilities
as of the bankruptcy filing.
The Hon. Scott M. Grossman is the case judge.
The Debtors tapped Latham & Watkins, LLP as general bankruptcy
counsel; Berger Singerman, LLP as local counsel; Haynes and Boone,
LLP and Faulkner ADR Law, PLLC as special counsels; Huron
Consulting Group, Inc., as CTO services provider; and Rothschild &
Co US, Inc., as investment banker; and Grant Thornton, LLP as
financial advisor. Stretto, Inc., is the notice, claims and
solicitation agent.
The U.S. Trustee for Region 21 appointed an official committee of
unsecured creditors on Nov. 1, 2022. The committee tapped
Lowenstein Sandler, LLP as general bankruptcy counsel; Sequor Law,
P.A., as local counsel; and Lincoln Partners Advisors, LLC as
financial advisor.
VPR BRANDS: Posts $928K Net Income in Second Quarter
----------------------------------------------------
VPR Brands, LP filed with the Securities and Exchange Commission
its Quarterly Report on Form 10-Q disclosing net income of $928,322
on $1.91 million of total revenues for the three months ended June
30, 2023, compared to net income of $73,733 on $920,705 of total
revenues for the three months ended June 30, 2022.
For the six months ended June 30, 2023, the Company reported net
income of $953,636 on $4.99 million of total revenues compared to a
net loss of $73,508 on $1.97 million of total revenues for the same
period in 2022.
As of June 30, 2023, the Company had $2.11 million in total assets,
$3.48 million in total liabilities, and a total partners' deficit
of $1.36 million.
VPR said, "The continuation of the Company as a going concern is
dependent upon, among other things, the continued financial support
from its common unit holders, the ability of the Company to obtain
necessary equity or debt financing, and the attainment of
profitable operations. These factors, among others, raise
substantial doubt regarding the Company's ability to continue as a
going concern. There is no assurance that the Company will be able
to generate sufficient revenues in the future.
"The Company plans to pursue equity funding to expand its brand.
Through equity funding and the current operations, the Company
expects to meet its current capital needs. There can be no
assurance that the Company will be able to raise sufficient working
capital. If the Company is unable to raise the necessary working
capital through equity funding, it will be forced to continue
relying on cash from operations in order to satisfy its current
working capital needs."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1376231/000121390023067017/f10q0623_vprbrands.htm
About VPR Brands
Headquartered in Ft. Lauderdale, FL, VPR Brands, LP --
http://www.VPRBrands.com-- is company engaged in the electronic
cigarette and personal vaporizer business.
Los Angeles, California-based Kreit & Chiu CPA's LLP, the Company's
auditor since 2022, issued a "going concern" qualification in its
report dated April 13, 2023, citing that the Company has an
accumulated deficit of $10,418,696 and a working capital deficit of
$1,938,476 at Dec. 31, 2022. These factors, among others, raise
substantial doubt regarding the Company's ability to continue as a
going concern.
WHAIRHOUSE LIMITED: Involuntary Chapter 11 Case Summary
-------------------------------------------------------
Alleged Debtor: Whairhouse Limited Liability Company
811 Totowa Rd
Totowa, NJ 07512
Involuntary Chapter
11 Petition Date: August 22, 2023
Court: United States Bankruptcy Court
District of New Jersey
Case No.: 23-17272
Petitioners'
Counsel: Sean Mack, Esq.
PASHMAN STEIN WALDER HAYDEN PC
21 Main Street, Suite 200
Hackensack NJ 07601
Tel: 201-270-4919
Email: smack@pashmanstein.com
A full-text copy of the Involuntary Petition is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/HWLKRVA/Whairhouse_Limited_Liability_Company__njbke-23-17272__0001.0.pdf?mcid=tGE4TAMA
Alleged creditors who signed the petition:
Petitioner Nature of Claim Claim Amount
Alexis Morrillo Breach of Contract/ $132,000
15809 Sanford Ave 1e Fraud
Flushing NY 07512
Frank Robinson Breach of contract/ $925,670
9 High Street Fraud
Montclair NJ 07042
Michael Ventura Breach of contract/ $502,320
417 Knickerbocker Rd Fraud
Tenafly NJ 07670
Rg3 LLC Breach of Contract/ $2,597,500
107-11 107 Street Fraud
Ozone Park NY 11417
Jermaine and Faleena Breach of contract/ $130,000
Andujar Fraud
19 Charles Street
Montclair NJ 07042
Samme Sheika Breach of contract/ $250,000
150 Main Street Fraud
Hackensack NJ 07601
Nicholas Tiah Breach of contract/ $151,938
Fraud
Jonathan Gunn Breach of contract/ $130,000
396 Webster Ave Fraud
Jersey City NJ 07054
WINCHESTER REAL: Gets OK to Hire Harrison Law as Special Counsel
----------------------------------------------------------------
Winchester Real Estate Investment Company, LLC received approval
from the U.S. Bankruptcy Court for the Northern District of Georgia
to employ Harrison Law, LLC as special counsel.
The Debtor requires a special counsel to assist with zoning and
land use matters and real estate contracts regarding its real
property, which is part of a planned unit development.
The firm will charge an hourly fee of $300 plus reimbursement of
expenses incurred.
Victor Harrison, Esq., an attorney at Harrison Law, disclosed in a
court filing that his firm is a "disinterested person" as that term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Victor J. Harrison, Esq.
Harrison Law, LLC
P.O. Box 1495
Douglasville, GA 30133
Telephone: (770) 942-4758
Email: victorharrison@westgalaw.com
About Winchester Real Estate
Investment Company
Winchester Real Estate Investment Company, LLC is a single asset
real estate (as defined in 11 U.S.C. Section 101(51B)). The company
is based in Villa Rica, Ga.
Winchester Real Estate Investment Company filed its voluntary
petition for relief under Chapter 11 of the Bankruptcy Code (Bankr.
N.D. Ga. Case No. 23-10773) on June 30, 2023, with $1 million to
$10 million in both assets and liabilities. James W. Davis, III,
manager, signed the petition.
Judge Paul Baisier oversees the case.
The Debtor tapped Leslie Pineyro, Esq., at Jones & Walden, LLC as
bankruptcy counsel and Victor J. Harrison, Esq., at Harrison Law,
LLC as special counsel.
XPLORNET COMMS: Guggenheim SOF Marks $4.5MM Loan at 21% Off
-----------------------------------------------------------
Guggenheim Strategic Opportunities Fund has marked its $4,580,250
loan extended to Xplornet Communications, Inc to market at
$3,621,650 or 79% of the outstanding amount, as of May 31, 2023,
according to Guggenheim SOF'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.
Guggenheim SOF is a participant in a Bank Loan to Xplornet
Communications, Inc. The loan accrues interest at a rate of 9.15%
(1 Month USD LIBOR + 4.00%, Rate Floor: 4.50%) per annum. The loan
matures on October 2, 2028.
Guggenheim Strategic Opportunities Fund was organized as a Delaware
statutory trust on November 13, 2006. Guggenheim SOF is registered
as a diversified, closed-end management investment company under
the Investment Company Act of 1940, as amended.
Xplornet Communications Inc operates as a broadband service
provider. The Company offers voice and data communication services
through wireless and satellite networks. Xplornet Communications
serves customers in Canada.
YACHTBRASIL MOTOR: U.S. Trustee Unable to Appoint Committee
-----------------------------------------------------------
The U.S. Trustee for Region 21, until further notice, will not
appoint an official committee of unsecured creditors in the Chapter
11 case of YachtBrasil Motor Boats and Charters, LLC, according to
court dockets.
About YachtBrasil Motor
YachtBrasil Motor Boats and Charters, LLC is a family-owned
business specializing in premier yachts. It is an authorized dealer
for the CCN, Maestro, Maori, Rio Yachts and Comitti.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. S.D. Fla. Case No. 23-15357) on July 9,
2023, with $1 million to $10 million in assets and liabilities.
Aleida Martinez Molina, Esq., has been appointed as Subchapter V
trustee.
Judge Laurel M. Isicoff oversees the case.
Geoffrey Aaronson, Esq., at Aaronson Schantz Beiley, P.A. is the
Debtor's legal counsel.
YC RIVERGOLD: Ordered to File Plan Not Later Than Sept. 29
----------------------------------------------------------
Judge Gary Spraker has entered an order that YC Rivergold Hotel,
LLC must file its Plan and Disclosure Statement by no later than
September 29, 2023.
Pursuant to Alaska Local Rule 3016-2(d), the Debtor must transmit a
copy of the Disclosure Statement and Plan to the United States
Trustee (UST) for review prior to filing the plan and disclosure
statement.
About YC Rivergold Hotel
YC Rivergold Hotel LLC is part of the traveler accommodation
industry. The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Alaska Case No. 23-00072) on April 29,
2023. In the petition signed by Baldev Johal, special bankruptcy
officer of YC Rivergold Holtel, LLC and managing member of YC
Rivergold Hotel MM, LLC, the Debtor disclosed up to $50 million in
both assets and liabilities.
Judge Gary Spraker oversees the case.
Austin K. Barron, Esq., at Step Two Law, represents the Debtor as
legal counsel.
Wells Fargo, as lender, is represented by LANE POWELL LLC,
POLSINELLI PC, and Agentis PLLC.
YELLOW CORP: Gets OK to Hire Epiq as Claims and Noticing Agent
--------------------------------------------------------------
Yellow Corporation and its affiliates received approval from the
U.S. Bankruptcy Court for the District of Delaware to employ Epiq
Corporate Restructuring, LLC as their claims and noticing agent.
Epiq will oversee the distribution of notices and will assist in
the maintenance, processing, and docketing of proofs of claim filed
in the Chapter 11 cases of the Debtors.
The hourly rates of Epiq's professionals are as follows:
IT/Programming $60 –
$88
Project Managers/Consultants/Directors $80 –
$185
Solicitation Consultant $185
Executive Vice President, Solicitation $195
In addition, Epiq will seek reimbursement for expenses incurred.
Kate Mailloux, a senior director at Epiq Corporate Restructuring,
disclosed in a court filing that her firm is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Kate Mailloux
Epiq Corporate Restructuring, LLC
777 Third Avenue, 12th Floor
New York, NY 10017
Telephone: (646) 282-2532
Email: kmailloux@epiqglobal.com
About Yellow Corp
Yellow Corporation -- www.myyellow.com -- operates logistics and
less-than-truckload (LTL) networks in North America, providing
customers with regional, national, and international shipping
services throughout. Yellow's principal office is in Nashville,
Tenn., and is the holding company for a portfolio of LTL brands
including Holland, New Penn, Reddaway, and YRC Freight, as well as
the logistics company Yellow Logistics.
Yellow Corporation and 23 affiliates concurrently filed voluntary
petitions for relief under Chapter 11 of the Bankruptcy Code
(Bankr. D. Del. Lead Case No. 23-11069) on August 6, 2023, before
the Hon. Craig T. Goldblatt. As of March 31, 2023, Yellow Corp had
$2,152,200,000 in total assets against $2,588,800,000 in total
liabilities. The petitions were signed by Matthew A. Doheny as
chief restructuring officer.
Kirkland & Ellis LLP is serving as the Company's restructuring
counsel, Pachulski Stang Ziehl & Jones LLP is serving as the
Company's Delaware local counsel, Kasowitz, Benson and Torres LLP
is serving as special litigation counsel, Goodmans LLP is serving
as the Company's special Canadian counsel, Ducera Partners LLC is
serving as the Company's investment banker, and Alvarez and Marsal
is serving as the Company's financial advisor. Epiq Bankruptcy
Solutions serves as claims and noticing agent.
Milbank LLP, serves as counsel to certain investment funds and
accounts managed by affiliates of Apollo Capital Management, L.P.
White & Case, LLP serves as counsel to Beal Bank USA.
Arnold & Porter Kaye Scholer, LLP serves as counsel to the United
States Department of the Treasury.
Alter Domus Products Corp., the Administrative Agent to the DIP
Lenders, is represented by Holland & Knight, LLP.
ZEP INC: Guggenheim SOF Marks $923,618 Loan at 16% Off
------------------------------------------------------
BGuggenheim Strategic Opportunities Fund has marked its $923,618
loan extended to Zep, Inc to market at $777,686 or 84% of the
outstanding amount, as of May 31, 2023, according to Guggenheim
SOF'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.
Guggenheim SOF is a participant in a Bank Loan to Zep, Inc. The
loan accrues interest at a rate of 9.16% (3 Month USD LIBOR +
4.00%, Rate Floor: 5.00%)per annum. The loan matures on August 12,
2024.
Guggenheim Strategic Opportunities Fund -Guggenheim Strategic
Opportunities Fund was organized as a Delaware statutory trust on
November 13, 2006. Guggenheim SOF is registered as a diversified,
closed-end management investment company under the Investment
Company Act of 1940, as amended.
Zep, Inc. is an Atlanta, Georgia-based cleaning products
manufacturer. It specializes in cleaning and maintenance products
for industrial, institutional, food and beverage, vehicle care, and
retail customers.
[*] Bailey Brauer Attorneys Named Best Lawyers in America
---------------------------------------------------------
Bailey Brauer PLLC co-founders Clayton Bailey and Alex Brauer,
along with partner Ben Stewart, have earned selection to the 2024
edition of the prestigious The Best Lawyers in America legal
guide.
Each of the three Dallas trial boutique attorneys were honored for
their commercial litigation work. Additionally, Mr. Bailey was
featured among the nation's top appellate attorneys.
Mr. Bailey represents clients in matters involving contract
disputes, business torts, RICO, employment law, trade secrets,
deceptive trade practices, fraud, breach of fiduciary duty,
antitrust, unfair business practices, and the Packers and
Stockyards Act. The nationally known trial and appellate attorney's
work has been recognized by Benchmark Litigation, the National
Trial Lawyers, Texas Trailblazers, BTI Consulting, Lawdragon 500
Leading Litigators and Leading Plaintiff Financial Lawyers, and
Texas Super Lawyers.
Known for skillfully developing creative resolutions to the most
complex disputes and presenting cases to judges and juries, Mr.
Brauer regularly handles matters ranging from allegations of fraud
and deceptive practices in commercial transactions to breaches of
fiduciary duty. His success on high-stakes cases has earned
professional accolades including Chambers USA Leading Lawyers,
Texas Super Lawyers, D Magazine's Best Lawyers in Dallas, Lawdragon
500 Leading Litigators, and Texas Trailblazers. He is also a
Litigation Counsel of America Fellow.
Mr. Stewart represents clients in federal and state courts in
bankruptcy and complex commercial litigation involving contractual
disputes, breaches of fiduciary duties, insurance coverage, and
officer/director liability. He also serves as a mediator and
assists companies with both internal and governmental
investigations, including responding to civil investigative demands
from the U.S. Securities and Exchange Commission (SEC) and
Commodity Futures Trading Commission (CFTC). In addition to Best
Lawyers, his work has earned recognition from Texas Super Lawyers,
as well as Lawdragon 500 Leading Litigators and Leading Bankruptcy
Lawyers.
One of the legal industry's oldest and most respected peer-review
guides, The Best Lawyers in America recognition is based on
confidential evaluations by Best Lawyers members in the same
practice area, with final selection made following rigorous
editorial research. For more information, including the full 2024
listing, visit https://www.bestlawyers.com/.
About Bailey Brauer PLLC
Bailey Brauer PLLC is nationally recognized for its trial and
appellate work and provides battle-tested, sophisticated courtroom
experience in high-stakes litigation matters. The firm focuses on
complex commercial litigation, appeals, and class actions.
[*] Bissinger Oshman Attorneys Named Best Layers in America
-----------------------------------------------------------
Five attorneys from the Houston-based litigation boutique
Bissinger, Oshman, Williams & Strasburger LLP, are recognized in
2024 editions of The Best Lawyers in America and Best Lawyers: Ones
to Watch legal guides.
Name partners David Bissinger, Jason Williams and John Strasburger
were selected to the prestigious Best Lawyers listing for their
commercial litigation work. Mr. Strasburger earned additional
recognition among the top bankruptcy litigation and mass tort/class
action defense attorneys.
The oldest peer-review attorney guide in the country, Best Lawyers
also is among the most respected. Selection is made by the Best
Lawyers research team, with decisions based in part upon feedback
from lawyers with a shared practice focus.
The companion Best Lawyers: Ones to Watch listing is reserved for
the top young legal talent, with recognition limited to attorneys
who have been in private practice for five to nine years.
Associate Erin Bullard was selected to this elite listing in
recognition of her commercial litigation work. Also honored for his
corporate law practice was associate Ross Smith.
Mr. Bissinger represents clients in litigation related to energy
and technology matters, securities, trade secrets and employment
covenants, executive compensation, corporate fiduciary, banking and
real estate. He also serves as an arbitrator in commercial
disputes.
Mr. Williams' practice focuses on energy, corporate fiduciary,
securities, and construction litigation, and he also has experience
in mergers and acquisitions litigation.
Mr. Strasburger has unique experience in complex commercial
disputes involving private equity, trade secrets and employment
covenants and trading and supply-contract matters. His practice
also includes corporate-governance matters.
Ms. Bullard represents corporate clients and individuals in a wide
range of complex civil litigation, including claims of covenants
not to compete, trade secrets, financial fraud, breach of fiduciary
duty, breach of contract, fraudulent transfer and negligence.
Mr. Smith represents clients in complex commercial cases involving
breach of contract, trade secret, non-compete and insurance
disputes. He also has experience with litigation involving the
mortgage and insurance industries.
About Bissinger, Oshman, Williams & Strasburger
Bissinger, Oshman, Williams & Strasburger LLP is a Houston-based
business trial and transaction firm focused on providing impactful,
cost-effective solutions to complex disputes and transactions
requiring careful attention, extensive experience and a high level
of sophistication.
[*] Frandzel Robins Attorneys Named Best Lawyers in America
-----------------------------------------------------------
Frandzel Robins Bloom & Csato, L.C. on Aug. 22, 2023 disclosed that
Best Lawyers has recognized Peter Csato, Andrew Alper, and Michael
Gomez in the 30th edition of The Best Lawyers in America, and
Wesley King and Gerrick Warrington in the fourth edition of Best
Lawyers: Ones to Watch(R) in America. Best Lawyers awards are
compiled "by conducting exhaustive peer-review surveys in which
tens of thousands of leading lawyers confidentially evaluate their
professional peers" and honor "only the top 5.3% of elite lawyers
in the nation across 150 practice areas."
"Ranking the most exceptional legal minds requires sustained
commitment and considerable intricacy. We leave no stone unturned,
ensuring that that each stage of the Best Lawyers awards cycle is
thorough," states the periodical. "Our dedication to accuracy is
backed by a Purely Peer Review(R) process that we developed for the
first edition and have maintained across decades of research."
Peter Csato's practice reflects his varied work over the years
representing commercial lenders of all types including banks,
commercial finance companies, hedge funds and private lenders at
all stages of the lending cycle. The "cradle to grave" experience
(and sometimes "resurrection") Peter acquired in representing
institutional and private lenders has broadened through referrals
to include representing private businesses and individuals in the
enforcement and collections of judgments and restructuring of debts
for businesses which requires expertise in real and personal
property secured transactions.
Andrew K. Alper represents lenders and secured creditors with a
large concentration of clients in the equipment leasing and real
and personal property secured transactions areas. Andrew's practice
includes litigation, documentation, insolvency, transactional
matters and all matters affecting lenders and lessors, except for
tax related matters.
Michael Gomez focuses his practice in the areas of bankruptcy,
debtor and creditor rights, commercial litigation, and business
litigation; debt workout negotiations, restructuring, and
documentation of commercial lending transactions, and personal
property and real estate-secured credits. He has represented
various entities, including debtors, creditors' committees, hedge
funds, indenture trustees, equipment lessors, receivers, landlords,
bankruptcy trustees, judgment creditors, private lenders, and
institutional lenders in out of court workouts, federal and state
court litigation, and chapters 7, 11, 12, and 13 bankruptcy cases.
Wesley King focuses his practice representing commercial banks,
private lenders, funds, and other financial companies in a wide
variety of transactional matters, including real estate
transactions and finance, commercial loan documentation, and other
secured transactions.
Gerrick Warrington is a bankruptcy lawyer and commercial litigator.
He specializes in representing banks, private lenders, loan
servicers, and other financial institutions and businesses in
chapter 11 and chapter 7 bankruptcy cases, including appeals. He
also represents businesses, including lenders, commercial landlords
and tenants, and others in business and insolvency-related
litigation in state and federal court.
Frandzel is a recognized leader offering legal counsel and
litigation services to financial institutions and businesses. For
over three decades we've been providing clients with time-tested
results and business insights to help them succeed. We are known
for our highly responsive service, lasting client relationships and
solutions that work.
[*] Musick Peeler Attorneys Named Best Lawyers in America
---------------------------------------------------------
Musick, Peeler & Garrett LLP on Aug. 22, 2023, disclosed that 12 of
its Partners have been recognized by Best Lawyers in the 30th
edition of The Best Lawyers in America and three of its Associates
have been recognized in the fourth edition of Best Lawyers: Ones to
Watch(R) in America. Best Lawyers awards are compiled "by
conducting exhaustive peer-review surveys in which tens of
thousands of leading lawyers confidentially evaluate their
professional peers" and honor "only the top 5.3% of elite lawyers
in the nation across 150 practice areas."
"Ranking the most exceptional legal minds requires sustained
commitment and considerable intricacy. We leave no stone unturned,
ensuring that that each stage of the Best Lawyers awards cycle is
thorough," states the periodical. "Our dedication to accuracy is
backed by a Purely Peer Review(R) process that we developed for the
first edition and have maintained across decades of research."
The Best Lawyers in America 2024
Los Angeles Office
William W. Carter, Partner, Criminal Defense, White-Collar
Steven Elie, Partner, Environmental Law
Karen Bizzini, Partner, Insurance Law
R. Joseph De Briyn, Managing Partner, Insurance Law
Lawrence Tabb, Partner, Insurance Law
David Tartaglio, Partner, Insurance Law
James Hassan, Partner, Trusts & Estates
Robert Liset, Partner, Health Care Law
Brian Holman, Partner, Bankruptcy and Creditor Debtor
Rights/Insolvency and Reorganization, Real Estate Law
Orange County Office
Jack W. Fleming, Partner, Construction Law
Candice Liao, Partner, Labor and Employment
San Diego Office
Alan J. Zuckerman, Partner, Real Estate Law
Best Lawyers: Ones to Watch in America 2024
Los Angeles Office
Rebecca Hummel, Associate, Construction Law
Giorgio Sassine, Associate, Construction Law
Ron E. Torres, Associate, Product Liability Litigation --
Defendants, Transportation Law
About Musick Peeler
Founded in 1954, MusickPeeler -- http://www.MusickPeeler.com/--
has offices in five major commercial centers across California with
over 100 attorneys practicing in 16 disciplines.
[*] Sklar Kirsh Attorneys Named Best Lawyers in America
-------------------------------------------------------
California-based law firm Sklar Kirsh LLP on Aug. 22 disclosed that
Best Lawyers has recognized Kelly Frazier, Owen Gross, Robbin
Itkin, Andrew Kirsh and Jeffrey Sklar in the 30th edition of The
Best Lawyers in America, and Jennifer Cohen and Benjamin Harrison
in the fourth edition of Best Lawyers: Ones to Watch(R) in America.
Best Lawyers awards are compiled "by conducting exhaustive
peer-review surveys in which tens of thousands of leading lawyers
confidentially evaluate their professional peers" and honor "only
the top 5.3% of elite lawyers in the nation across 150 practice
areas."
"Ranking the most exceptional legal minds requires sustained
commitment and considerable intricacy. We leave no stone unturned,
ensuring that that each stage of the Best Lawyers awards cycle is
thorough," states the periodical. "Our dedication to accuracy is
backed by a Purely Peer Review(R) process that we developed for the
first edition and have maintained across decades of research."
Ms. Cohen advises closely-held businesses on sophisticated
corporate transactions, including mergers and acquisitions, joint
ventures, equity investments, commercial transactions, and
corporate governance matters. Her in-house counsel experience and
business background provide her with a practical, business-world
perspective when advising and negotiating on behalf of her
clients.
Ms. Frazier provides strategies and options to understand and take
control of situations involving corporate financial challenges. She
has advised clients in restructuring debt, selling and buying
distressed assets (both in and out of bankruptcy), and generally
protecting and advancing the interests of financially troubled
companies or such companies' creditors, all with the goal of
creating and structuring transactions that maximize value for
clients.
Mr. Gross has over 25 years of experience as a transactional real
estate attorney primarily representing lenders and borrowers, but
he has also has done a significant amount of work representing
buyers, sellers, developer partners, equity partners and
governmental agencies, with respect to all types of properties. The
breadth of Owen's experience allows him to work on virtually all
aspects of very complicated transactions.
Mr. Harrison's practice focuses on mergers and acquisitions,
commercial transactions, corporate governance matters, equity
investments and joint ventures. He has represented clients across a
wide range of industries, including technology, entertainment and
media, consumer products and real estate.
Ms. Itkin's experience includes restructuring billions of dollars
of debt and accomplishing business resolutions in chapter 11 cases
and numerous restructurings outside the courtroom on behalf of
interested parties including, among others, debtors, creditors,
creditors' committees, fiduciaries, buyers, boards of directors,
principals, high profile individuals and Ponzi scheme victims. As a
mediator, Robbin uses her problem-solving strength to advise both
healthy companies and those in distress, leading them to negotiate
effectively with their own creditors and counterparties who are in
fragile economic straits.
Mr. Kirsh is an experienced commercial real estate transactional
attorney, whose clientele includes a broad spectrum of national,
regional and local investors, funds, developers, operators,
syndicators, private equity providers and lenders. His practice
involves all aspects of the real estate industry, including
acquisitions, dispositions, equity investments, syndications, fund
formation, development, leasing, financing, note purchases and
foreclosures.
Mr. Sklar's principal areas of practice are corporate law, mergers
and acquisitions, joint ventures, partner dispute resolution and
executive compensation in a variety of industries including
advertising, alternative energy, apparel, consumer products,
entertainment and media, manufacturing, medical devices,
restaurants/hospitality, social media and technology.
Sklar Kirsh LLP -- http://www.SklarKirsh.com/-- is a California
law firm that provides sophisticated and expert advice in the areas
of corporate, real estate, bankruptcy, and entertainment law as
well as commercial, real estate and entertainment litigation.
[*] Two Fears Law Attorneys Named Best Lawyers in America
---------------------------------------------------------
Fears Law on Aug. 17 disclosed that founder Bryan Fears and partner
Julianne Parker have been recognized by The Best Lawyers in America
for their outstanding representation in commercial and personal
injury litigation. Both Mr. Fears and Ms. Parker are recognized in
the practice areas of Bankruptcy and Creditor Debtor Rights and
Insolvency and Reorganization Law.
In addition, partners Brice Burris, Chris Brown, and Jeremy Ayer,
as well as attorney Christopher Pride, were selected as some of
this year's Best Lawyers: Ones to Watch, an honor reserved for
attorneys who exhibit outstanding professional excellence earlier
in their careers.
Since 1983, The Best Lawyers in America has set the standard for
legal recognition nationwide and continues to provide valuable
insight into the legal industry. Awards from Best Lawyers are
compiled by conducting exhaustive peer-review surveys in which tens
of thousands of leading lawyers confidentially evaluate their
professional peers. The 29th edition of Best Lawyers recognizes
only the top 5.3% of elite lawyers in the nation across 150
practice areas.
Fears Law -- https://fears.com/ -- provides creative legal
solutions to individuals, families, and business owners in the
areas of personal injury, business law, intellectual property and
beyond.
[] David Herman Joins McDermott's Transactions Practice Group
-------------------------------------------------------------
International law firm McDermott Will & Emery welcomes David Herman
to its Transactions Practice Group as a partner. Mr. Herman is a
highly regarded real estate lawyer focusing on all aspects of
commercial real estate transactions across the full spectrum of
asset classes, primarily for private equity firms and other asset
managers.
"The commercial real estate market continues to shift following the
pandemic, particularly in New York, which presents tremendous
opportunities for our clients," said David. "McDermott's platform
emphasizes cross-practice collaboration and will further help our
clients achieve the most optimal executions, restructurings and
investment outcomes."
With over two decades of experience counseling clients, including
some of the nation's premier real estate firms, Mr. Herman has
advised in complex transactions totaling more than $100 billion.
His representations include:
-- Advising public and private REITs on mergers, acquisitions,
joint ventures and spin-offs, including Lehman Brothers in
connection with the bankruptcy and subsequent restructuring of its
real estate portfolio.
-- Counseling industry clients on general corporate matters,
mortgage-backed securitizations, commercial lending transactions,
company and asset portfolio acquisitions and dispositions, private
equity transactions and other real estate-related transactions.
-- Advising lenders, borrowers and special servicers on loan
restructurings, workouts and take-backs.
"As a top five law firm in private equity, both globally and in the
US*, we're pleased to further strengthen our robust real estate
private equity practice with David's expertise in the industry,"
said Dr. Jens Ortmanns, global head of the Firm's Real Estate and
Real Estate Finance Group.
Joining Mr. Herman's team are Partner Sam Limmer (Washington, DC)
and Counsel Cynthia (Cindy) Resnick (Miami.)
Sam represents real estate-focused entities, including developers,
operators, private equity firms, REITs, financial institutions and
special servicers. He has advised clients on a broad range of
transactions across the United States involving multifamily,
office, film studio, retail, hospitality and gaming, life sciences,
residential, industrial, and condominium properties and portfolios.
Ms. Resnick represents major institutions, developers, private
equity funds, servicers and other real estate owners and investors
in a broad range of real estate-related transactions. Sam and Cindy
join from Paul Hastings.
"We see momentum on the horizon for real estate and private equity
clients, and with David's extensive experience in handling complex
transactions and restructurings in dynamic market environments, we
are in an even better position to grow our practice," said Harris
Siskind, global head of the Firm's Transactions Practice Group. "We
are thrilled David and his team have chosen McDermott and extend a
very warm welcome."
About McDermott Will & Emery
McDermott Will & Emery partners with leaders around the world to
fuel missions, knock down barriers and shape markets. Its team
works seamlessly across practices and industries to deliver highly
effective solutions that propel success. More than 1,400 lawyers
strong, the firm brings its personal passion and legal prowess to
bear in every matter for its clients and the people they serve.
McDermott's global real estate team counsels clients on the
acquisition, development, financing, disposition and restructuring
of all real estate asset classes. Its Transactions Practice Group
represents business interests around the world, from global
corporations and industry-leading companies to privately funded and
entrepreneurial-driven enterprises, as well as the financial
institutions that support them. The Firm consistently ranks in the
leading league tables, including Mergermarket, Thomson Reuters,
Bloomberg and PitchBook.
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.
Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
The Sunday TCR delivers securitization rating news from the week
then-ending.
TCR subscribers have free access to our on-line news archive.
Point your Web browser to http://TCRresources.bankrupt.com/and use
the e-mail address to which your TCR is delivered to login.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
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Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and
Peter A. Chapman, Editors.
Copyright 2023. All rights reserved. ISSN: 1520-9474.
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*** End of Transmission ***