/raid1/www/Hosts/bankrupt/TCR_Public/230828.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Monday, August 28, 2023, Vol. 27, No. 239
Headlines
20205WY-01 LLC: Sept. 6 Plan Confirmation Hearing Set
2202 EAST: Court OKs Interim Cash Collateral Access
50 CROSBY PINES: Taps Pendergraft & Simon as Legal Counsel
604KENNEDY LLC: Court OKs Cash Collateral Access Thru Nov 1
9300 WILSHIRE: Exclusivity Period Extended to September 19
AC & CB: Wins Cash Collateral Access Thru Sept 27
ACRO BIOMEDICAL: Incurs $3.2 Million Net Loss in Second Quarter
AEROCISION PARENT: $12.5MM Citizens Bank DIP Loan Has Final OK
ALASKA LOGISTICS: Gets OK to Hire Wenokur Riordan as Legal Counsel
ALLSTATE REALTY: Seeks Cash Collateral Access
AMERICAN AXLE: Egan-Jones Retains B- Senior Unsecured Ratings
ANDERBY BREWING: Gets OK to Hire Wipfli LLP as Accountant
ANKORY CONSTRUCTION: Leon Jones Named Subchapter V Trustee
APEX APPAREL: Nancy Isaacson Named Subchapter V Trustee
APOSTOLIC ASSEMBLY: Taps Womack Development as Real Estate Agent
APPROVED ONE: Voluntary Chapter 11 Case Summary
ARRAY MIDCO: S&P Affirms 'CCC+' Issue Credit Rating, Outlook Neg.
ASPIRA WOMEN'S: Incurs $2.3 Million Net Loss in Second Quarter
ATLAS LITHIUM: Incurs $9.4 Million Net Loss in Second Quarter
B&G FOODS: Egan-Jones Retains B Senior Unsecured Ratings
BAKERS DEPOT: Voluntary Chapter 11 Case Summary
BANYAN CAY RESORT: Resort Given to Lender After Failed Ch.11 Sale
BDD HOLDINGS: Voluntary Chapter 11 Case Summary
BEACON COFFEE: Seeks to Hire Varshawsky Huber as Accountant
BEAZER HOMES: Egan-Jones Retains BB- Senior Unsecured Ratings
BELA FLOR: Seeks $12MM DIP Loan from Agrifund
BEST ROCK: Case Summary & 13 Unsecured Creditors
BEVERLY COMMUNITY: Cash Access OK'd on Final Basis
BIOMARIN PHARMACEUTICAL: Egan-Jones Retains BB- Sr. Unsec. Ratings
BOLTA US: Liquidating Trustee Taps Maples Law Firm as Counsel
BOY SCOUTS: Abuse Claimants Want Settlement Plan Pause
BRAINERD INDUSTRIES: Seeks to Hire Rike LLC as Accountant
BRINK'S CO: Egan-Jones Retains B+ Senior Unsecured Ratings
CAIRO HOLDING: Voluntary Chapter 11 Case Summary
CALUMET PAINT: May Use Cash Collateral Thru Dec 31
CAPPAERT MANUFACTURED: Voluntary Chapter 11 Case Summary
CAPROCK LAND: Case Summary & 20 Largest Unsecured Creditors
CARROLS RESTAURANT: S&P Upgrades ICR to 'B-', Outlook Positive
CBL & ASSOCIATES: Shareholders Want to Get $3.5 Million in Fees
CCI HOLDINGS: Seeks Cash Collateral Access
CELSIUS NETWORK: Fine-Tunes Plan Ahead of Oct. 2 Hearing
CENTERPOINT PRODUCTIONS: Frances Smith Named Subchapter V Trustee
CHART INDUSTRIES: Egan-Jones Retains BB+ Senior Unsecured Ratings
CHARTER COMMUNICATIONS: Egan-Jones Retains BB Sr. Unsec. Ratings
CHINAH USA: Wins Interim Cash Collateral Access
CHRISTMAS TREE SHOPS: Workers Cannot Get Promised Bonuses
CINEMARK HOLDINGS: Egan-Jones Retains CC Senior Unsecured Ratings
CITRIX SYSTEMS: Egan-Jones Retains BB+ Senior Unsecured Ratings
CLEAR CHOICE: Court OKs Cash Collateral Access Thru Oct 2
CLEMMER'S CONSTRUCTION: Taps R. Keith Johnson as Legal Counsel
CLOUD VENTURES 1: Seeks to Extend Plan Deadline to October 23
COEUR MINING: Egan-Jones Retains B+ Senior Unsecured Ratings
COMMUNITY HEALTH: Egan-Jones Retains CCC+ Senior Unsecured Ratings
CONGREGATION COFFEE: Taps Patrick J. Gros CPA as Accountant
CONSOLIDATED COMMUNICATIONS: Egan-Jones Retains B- Unsec. Ratings
CORECIVIC INC: Egan-Jones Retains BB+ Senior Unsecured Ratings
COTTONWOOD VENDING: Voluntary Chapter 11 Case Summary
CPI LUXURY: Taps ArentFox Schiff as Bankruptcy Counsel
CREATING SCHOLARS: Donna Hall Named Subchapter V Trustee
CUENTAS INC: Incurs $1.4 Million Net Loss in Second Quarter
CUENTAS INC: Receives Noncompliance Notice From Nasdaq
DAWN ACQUISITIONS: S&P Upgrades ICR to 'CCC', Outlook Negative
DECURTIS HOLDINGS: Judge Rejects Carnival Bid to Reclassify Debt
DELUXE CORP: Egan-Jones Retains B Senior Unsecured Ratings
DENT TECH: Files Amendment to Disclosure Statement
DEPETRIS FAMILY: Voluntary Chapter 11 Case Summary
DIAMOND SPORTS: Chapter 11 Plan Sent to Mediation
DIAMOND SPORTS: Committee Taps Reid Collins as Special Counsel
DIAMOND SPORTS: Sinclair Accused of Draining $1.5 Billion
DIGITALXMEDIA LLC: Taps Welch Financial Advisors as Accountant
DOUBLE VISION: Case Summary & Three Unsecured Creditors
EAGLE TRUCKLINES: Case Summary & Largest Unsecured Creditors
EBIX INC: Egan-Jones Retains BB- Senior Unsecured Ratings
ELITE KIDS: Unsecureds Will Get 3% of Claims in 24 Months
ENDO INT'L: Buyers Offer Schools $3M to Drop Opposition to Sale
ENERGY PLUS: Taps Cobb Doerfler & Associates as Accountant
FIRST TO THE FINISH: Wins Cash Collateral Access Thru Sept 14
FLUOR CORP: Egan-Jones Retains B Senior Unsecured Ratings
FOR PAWS BLUE: Court OKs Cash Collateral Access on Final Basis
FOSSIL GROUP: Egan-Jones Retains BB- Senior Unsecured Ratings
FREEDOM HOLDING: S&P Places 'B-' LT ICR on CreditWatch Negative
GAUCHO GROUP: Incurs $5 Million Net Loss in Second Quarter
GIRARDI & KEESE: Tom Ordered by Court to Attend Competency Hearing
GLATFERER CORP: Egan-Jones Hikes Senior Unsecured Ratings to B+
GLENDALE INVESTMENT: Unsecureds to Split $36K over 36 Months
GLOBAL AVIATION: Seeks to Extend Plan Exclusivity to September 11
GLOBALSTAR INC: Egan-Jones Retains CC Senior Unsecured Ratings
GOBO LTD: Court OKs Cash Collateral Access Thru Feb 2024
GREEN DISTRICT: Court OKs Interim Cash Collateral Access
GXO LOGISTICS: Moody's Alters Outlook on 'Ba1' CFR to Positive
HANESBRANDS INC: Egan-Jones Retains B Senior Unsecured Ratings
HARVARD APPARATUS: Incurs $2.6 Million Net Loss in Second Quarter
HAWAIIAN ELECTRIC: S&P Downgrades ICR to 'B-', On Watch Negative
HEART HEATING: Court OKs Cash Collateral Access on Final Basis
HERITAGE POWER: Files Amendment to Disclosure Statement
HILLENBRAND INC: Egan-Jones Retains BB+ Senior Unsecured Ratings
HOPE COMMUNITY: S&P Places 'BB-' Rev Bond Rating on Watch Negative
HORSIN AROUND: Claims Will Be Paid from Property Sale/Refinance
IMEDIA BRANDS: $40 Million Chapter 11 Sale to IV Media Okayed
INFINERA CORP: Egan-Jones Retains CC Senior Unsecured Ratings
INSYS THERAPEUTICS: Former CEO Must Repay $6-Million Defense Fees
INSYS THERAPEUTICS: Trustee Wants Insurer to Pay Share of Settlemen
INTERDIGITAL INC: Egan-Jones Retains BB+ Senior Unsecured Ratings
IONIS PHARMACEUTICALS: Egan-Jones Hikes Sr. Unsecured Ratings to B
ITTELLA INTERNATIONAL: Court OKs $6MM DIP Loan from UMB Bank
J.T. AND SON: Taps Thompson Law Group as Bankruptcy Counsel
JAGUAR HEALTH: Incurs $12.3 Million Net Loss in Second Quarter
JETASAP LLC: Court OKs Interim Cash Collateral Access
JUUL LABS: Shareholder File Suit vs. Co. for Withholding Financials
KDP LLC: Unsecureds Recovery "TBD" in Liquidating Plan
KNOW LABS: Incurs $3.6 Million Net Loss in Third Quarter
KPG REVENUE: RCM-TO GO Unsecureds to Get 67% of Claims in Plan
L.O.L. COUNSELING: Taps C. Taylor Crockett as Legal Counsel
LA CROSSE TENT: Taps Pittman & Pittman Law Offices as Counsel
LAMAR ADVERTISING: Egan-Jones Retains BB- Senior Unsecured Ratings
LINCOLN NATIONAL: Egan-Jones Retains BB+ Senior Unsecured Ratings
LITTLE ROAD: Seeks to Hire Barbara Smith as Accountant
MANITOWOC COMPANY: Moody's Raises CFR & Senior Secured Debt to B2
MANITOWOC INC: Egan-Jones Retains BB- Senior Unsecured Ratings
MASTERS III: Asset Sale Proceeds to Fund Plan
MEP INFRASTRUCTURE: Court OKs Cash Collateral Access Thru Sept 20
MERISOL VILLAGES: Taps Carl J. Kolb P.C. as Litigation Counsel
MERIT TECHNOLOGY: Chapter 7 Trustee Seeks to Distribute Funds
MIKU INC: Court OKs Cash Collateral Access, $1MM DIP Loan from W67
MINSHEW BROTHERS: Court OKs Cash Collateral Access Thru Aug 30
MONTGOMERY REALTY: Wins Cash Collateral Access Thru Sept 5
NABOO ROYAL: Case Summary & Five Unsecured Creditors
NASHVILLE SENIOR CARE: Court OKs $2.85MM DIP Loan from UMB Bank
NATHAN'S FAMOUS: Egan-Jones Retains BB+ Senior Unsecured Ratings
NATURE COAST: Amends Several Secured Claims Pay Details
NELKIN & NELKIN: Voluntary Chapter 11 Case Summary
NETFOR INC: Court OKs Cash Collateral Access on Final Basis
NGL ENERGY: Moody's Affirms 'B3' CFR & Alters Outlook to Positive
NORMAN REALTY: Case Summary & 11 Unsecured Creditors
NORTHFACE LEASE: Voluntary Chapter 11 Case Summary
NOTTINGHAM ACADEMY: Court OKs Cash Collateral Access Thru Sept 30
NOVAN INC: Court OKs $12MM DIP Loan from Ligand Pharmaceuticals
NOVATION HOLDINGS INC: Dives in Chapter 11, Owes About $100 Million
OFFSHORE SPARS: Unsecured Creditors to Split $45K over 3 Years
OLAPLEX: S&P Downgrades ICR to 'B-' Outlook Negative
OMEGA TWIN: Voluntary Chapter 11 Case Summary
OMNIQ CORP: Incurs $3.9 Million Net Loss in Second Quarter
ONLINE EDUGO: Court OKs Cash Collateral Access Thru Sept 12
OPEN COURT SPORTS: Court OKs Cash Collateral Access on Final Basis
ORION TECHNOLOGIES: Wins Cash Collateral Access Thru Aug 30
OUTFRONT MEDIA: Egan-Jones Retains CCC Senior Unsecured Ratings
PAR 5 PROPERTY: Trustee Taps Gabrielson & Company as Accountant
PEGASUS HOME: Case Summary & 30 Largest Unsecured Creditors
PHOENIX TELECOM: Court OKs Cash Collateral Access on Final Basis
PIERLO INC: Unsecured Creditors to Split $75K over 5 Years
POLARIS OPERATING: Court OKs Interim Cash Collateral Access
POLK AZ: Trustee Taps Osborn Maledon as Legal Counsel
POST HOLDINGS: Egan-Jones Retains B Senior Unsecured Ratings
POWER BRANDS: Seeks to Hire Goe Forsythe & Hodges as Legal Counsel
PROFESSIONAL DIVERSITY: Incurs $1.4 Million Net Loss in 2nd Quarter
PROJECT NEPTUNE: Voluntary Chapter 11 Case Summary
PROPERTY ADVOCATES: Case Summary & 8 Unsecured Creditors
PROVECTUS BIOPHARMACEUTICALS: Incurs $835K Net Loss in 2nd Quarter
QUICK DRY: Seeks Cash Collateral Access
R & E PETROLEUM: Unsecureds to Get 70 Cents on Dollar in Plan
RADNOR RE 2023-1: DBRS Finalizes B Rating on Class B-1 Notes
REAL BRANDS: Incurs $188K Net Loss in Second Quarter
REMOTEMD LLC: Unsecured Claims Under $2,500 to Recover 41% in Plan
ROYALE ENERGY: Posts $1 Million Net Loss in Second Quarter
RYAN SPECIALTY: Moody's Alters Outlook on 'B1' CFR to Positive
S&G HOSPITALITY: Court OKs Interim Cash Collateral Access
S&W BLUE JAY: Taps The Agency, Nourmand & Associates as Brokers
SACKS WESTON: Case Summary & 17 Unsecured Creditors
SAINT LEO UNIVERSITY: S&P Lowers ICR to 'BB' on Weakened Finances
SHEARER'S FOODS: Moody's Alters Outlook on 'B2' CFR to Stable
SIGYN THERAPEUTICS: Incurs $723K Net Loss in Second Quarter
SIX FLAGS: Egan-Jones Retains CCC+ Senior Unsecured Ratings
SOHA HOUSE: Gets OK to Hire Davidoff Hutcher & Citron as Counsel
SOUL HEAVEN: Taps Frances Hoit Hollinger as Bankruptcy Attorney
SOUTHERN HERITAGE: Unsecureds Owed $437K to Get Nothing in Plan
SPIRIPLEX INC: Court OKs Cash Collateral Access Thru Oct 13
STEEPOLOGIE LLC: Case Summary & 20 Largest Unsecured Creditors
SUMMIT HOTEL: Egan-Jones Retains BB Senior Unsecured Ratings
SUN PACIFIC: Posts $101K Net Income in Second Quarter
SUN VALLEY: Interim Cash Collateral Access OK'd
SUNPOWER CORP: Egan-Jones Retains BB Senior Unsecured Ratings
TANTIVE GIV: Case Summary & Six Unsecured Creditors
TECHNICAL ORDNANCE: Taps Mchale P.A. as Financial Advisor
TEGNA INC: Egan-Jones Retains CCC+ Senior Unsecured Ratings
TENNECO INC: Egan-Jones Retains B Senior Unsecured Ratings
TREES CORP: Posts $2 Million Net Loss in Second Quarter
TRITEK INTERNATIONAL: Enters Global Settlement; Files Amended Plan
TRONOX INC: Egan-Jones Retains BB- Senior Unsecured Ratings
TWILIGHT HAVEN: Gets OK to Hire Gregory J. Smith as Special Counsel
TWILIGHT HAVEN: Gets OK to Hire Impossible Services as Consultant
TWITTER INC: Egan-Jones Retains BB- Senior Unsecured Ratings
VENATOR MATERIALS: Taps Deloitte as Tax Services Provider
VENUS CONCEPT: Posts $7.3 Million Net Loss in Second Quarter
VESTTOO LTD: Aug. 28 Deadline Set for Panel Questionnaires
VIASAT INC: Egan-Jones Retains CCC+ Senior Unsecured Ratings
VOIP.PAL.COM: Posts $21.2 Million Loss in Third Quarter
WENDY'S COMPANY: Egan-Jones Retains B Senior Unsecured Ratings
WHITE MOUNTAINS: Egan-Jones Retains BB+ Senior Unsecured Ratings
WHITETAIL GENERAL: Unsecureds Will Get 13 Cents on Dollar in Plan
WHITING PETROLEUM: Egan-Jones Retains BB Senior Unsecured Ratings
WHITTAKER CLARK: Seeks to Extend Plan Exclusivity to December 22
WILLIAMS INDUSTRIAL: DIP Loans from PNC, EICF Win Final OK
WILLIAMS INDUSTRIAL: Faces Stalking Horse Bid Stalemate
WILLIAMS INDUSTRIAL: To Give Execs $200K Bonuses in Chapter 11
WINDSOR TERRACE: Seeks $6.5MM DIP Loan from RT Lending
WORKSITE LABS: Taps Levene Neale Bender Yoo & Golubchik as Counsel
WORLD SECURITY: Seeks to Hire Tamarez CPA as Accountant
XTREME LINES: Case Summary & 17 Unsecured Creditors
YELLOW CORP: Estes Submits $1.3 Billion Bid for Terminals
YELLOW CORP: Sept 18 Final Hearing on Alter Domus DIP Loan
YELLOW CORPORATION: Sec. 341(a) Meeting Set for Sept. 14
YUNHONG CTI: Incurs $149K Net Loss in Second Quarter
[^] BOND PRICING: For the Week from August 21 to 25, 2023
*********
20205WY-01 LLC: Sept. 6 Plan Confirmation Hearing Set
-----------------------------------------------------
20205WY-01, LLC, filed with the U.S. Bankruptcy Court for the
Northern District of California a motion for order approving
Disclosure Statement describing Chapter 11 Plan of Liquidation.
On August 21, 2023, Judge William J. Lafferty, III granted the
motion and ordered that:
* The Disclosure Statement describing Chapter 11 Plan of
Liquidation is approved for dissemination;
* August 30, 2023 is fixed as the last day to submit ballots
accepting or rejecting the Plan;
* August 30, 2023 is fixed as the last day to file and serve
any objection to the confirmation of the Plan;
* September 5, 2023 is fixed as the last day for the Debtor to
file and serve any pleadings and evidence in support of
confirmation of the Plan, including a plan confirmation brief and a
ballot summary;
* September 6, 2023, at 10:30 a.m. is the hearing on the
confirmation of the Plan.
A copy of the order dated August 21, 2023 is available at
https://urlcurt.com/u?l=O2oxMD from PacerMonitor.com at no charge.
Attorneys for Debtor:
David M. Goodrich, Esq.
Sonja M. Hourany, Esq.
Golden Goodrich, LLP
650 Town Center Drive, Suite 600
Costa Mesa, CA 92626
Telephone 714-966-1000
Facsimile 714-966-1002
Email: dgoodrich@go2.law
shourany@go2.law
About 20205WY-01, LLC
20205WY-01, LLC is a Single Asset Real Estate (as defined in 11
U.S.C. Section 101(51B)). The Debtor owns in fee simple title a
property located at 743 Hilldale Avenue Berkeley, California valued
at $1.6 million.
20205WY-01, LLC filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. N.D. Cal. Case No. 24
40185) on Feb. 20, 2023. The petition was signed by Victoria Haas
as member. At the time of filing, the Debtor estimated $1,600,065
in assets and $1,103,433 in liabilities.
David M. Goodrich, Esq., at GOLDEN GOODRICH LLP, is the Debtor's
counsel.
2202 EAST: Court OKs Interim Cash Collateral Access
---------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California,
Los Angeles Division, authorized Carolyn A. Dye, the Chapter 11
trustee for 2202 East Anderson Ave, LLC, to use cash collateral on
an interim basis in accordance with the the agreement with Pacific
Premier Bank and the budget, with a 10% variance.
As adequate protection and in view of 11 U.S.C. Section 362(d)(3),
the Trustee is directed make monthly payments to Creditor equal to
non-default interest on the following dates: by June 23, 2023 and
on the 10th calendar day of each subsequent month.
As further protection, the Creditor will be granted a replacement
lien on all assets to which Creditor's prepetition lien attached
and would have attached but for the filing of the Debtor's
bankruptcy petition, with the Replacement Lien to have the same
validity, priority, and extent as Creditor's prepetition lien on
the Debtor's assets.
The authorization to use cash collateral will terminate immediately
and automatically, without any obligation of Creditor to provide
notice to Trustee or any other party, upon the within the Court's
entry of an order (1) converting the bankruptcy case to a case
under chapter 7 of the Bankruptcy Code; or (2) granting relief from
the automatic stay to Creditor or any other creditor with a
security interest in the Collateral.
A copy of the order is available at https://urlcurt.com/u?l=C755nq
from PacerMonitor.com.
About 2202 East Anderson Street
2202 East Anderson Street, LLC, a Los Angeles-based company, filed
a petition under Chapter 11, Subchapter V of the Bankruptcy Code
(Bankr. C.D. Calif. Case No. 23-11695) on March 23, 2023, with $1
million to $10 million in both assets and liabilities. Susan K.
Seflin was appointed as Subchapter V trustee.
On May 22, 2023, the bankruptcy court issued an order striking 2202
East's designation as a Subchapter V debtor and on May 23, 2023,
the court ordered the U.S. Trustee for Region 16 to appoint a
Chapter 11 trustee.
Judge Neil W. Bason oversees the case.
The Debtor is represented by Raymond H. Aver, Esq., at the Law
Offices of Raymond H. Aver.
50 CROSBY PINES: Taps Pendergraft & Simon as Legal Counsel
----------------------------------------------------------
50 Crosby Pines, Ltd. seeks approval from the U.S. Bankruptcy Court
for the Southern District of Texas to hire Pendergraft & Simon, LLP
as its bankruptcy counsel.
The firm will provide these services:
a. analysis of the financial situation, and rendering advice
and assistance to the Debtors in determining whether to file
petitions under Title 11, United States Code;
b. advising Debtors with respect to their powers and duties as
a Debtors-in-Possession;
c. conducting appropriate examinations of witnesses, claimants
and other persons;
d. preparation and filing of all appropriate petitions,
schedules of assets and liabilities, statements of affairs,
answers, motions and other legal papers; and to consult with and
advise the Debtors-in-Possession in connection with the operation
of or the termination of the operation of the business of the
Debtors;
e. representation of the Debtors at the meeting of creditors
and such other services as may be required during the course of the
bankruptcy proceedings;
f. representing Debtors-in-Possession in all proceedings before
the Court and in any other judicial or administrative proceeding
where the rights of the Debtors may be litigated or otherwise
affected;
g. preparation, filing, negotiation and prosecution of a
Disclosure Statement and Plan of Reorganization;
h. advising and consulting with the Debtors-in-Possession
concerning questions arising in the conduct of the administration
of the estate and concerning Debtors' rights and remedies with
regard to the Estates' assets and the claims of se- cured, priority
and unsecured creditors;
i. investigating pre-petition transactions and prosecution, if
appropriate, preference and other avoidance actions arising under
the Debtors-in-Possessions' avoidance powers or any other causes of
action held by the Estates;
j. defending, if necessary, any motions to lift the automatic
stay, contested matters and/or adversary proceedings, and, analyze
and prosecute any objections to claims;
k. appearing on behalf of the Debtors-in-Possession before
this Court;
l. advising and assisting the Debtors-in-Possession with real
estate and business organizations issues related to this case; and
m. assistance to Debtors in any matters relating to or arising
out of the captioned case.
The firm will be paid at these rates:
Leonard Simon $600 per hour
William P. Haddock $500 per hour
Senior paralegal/Senior law clerk $250 per hour
Junior paralegal/Junior law clerk $125 per hour
In addition, the firm will receive reimbursement for out-of-pocket
expenses incurred.
The firm received from the Debtor a retainer of $10,000.
Leonard Simon, Esq. a partner at Pendergraft & Simon, LLP,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Leonard H. Simon, Esq.
Pendergraft & Simon, LLP
2777 Allen Parkway, Suite 800,
Houston, TX 77019
Tel: (713) 528-8555
Fax: (713) 868-1267
Email: lsimon@pendergraftsimon.com
About 50 Crosby Pines
50 Crosby Pines, Ltd. filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Texas Case No.
23-32924) on July 31, 2023, listing $1 million to $10 million in
both assets and liabilities.
Judge Eduardo V Rodriguez oversees the case.
Leonard H. Simon, Esq., at Pendergraft & Simon, LLP represents the
Debtor as counsel.
604KENNEDY LLC: Court OKs Cash Collateral Access Thru Nov 1
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The U.S. Bankruptcy Court for the District of Columbia authorized
604Kennedy LLC to use cash collateral of Old Dominion National Bank
through November 1, 2023.
As adequate protection, ODNB will have a replacement lien, to the
extent of any and all cash collateral used by the Debtor.
The Debtor will make the July 2023 payment to ODNB in the amount of
$13,708 within three business days of approval of the Motion.
Regular monthly payments in the amount of $13,707 to ODNB will be
made on August 15, September 15, and October 15, 2023.
A copy of the order is available https://urlcurt.com/u?l=91uW72
from PacerMonitor.com.
About 604Kennedy LLC
The Debtor is engaged in activities related to real estate.
604Kennedy LLC in Reston, VA, filed its voluntary petition for
Chapter 11 protection (Bankr. D. Colo. Case No. 23-00181) on July
11, 2023, listing as much as $1 million to $10 million in both
assets and liabilities. Naveen Vavilala as managing member, signed
the petition.
Judge Elizabeth L. Gunn oversees the case.
Whiteford, Taylor & Preston, LLP serves as the Debtor's legal
counsel.
9300 WILSHIRE: Exclusivity Period Extended to September 19
----------------------------------------------------------
Judge Ernest M. Robles of the U.S. Bankruptcy Court for the
Central District of California extended 9300 Wilshire, LLC's
exclusivity period to file its chapter 11 plan from June 21, 2023
to September 19, 2023.
The judge also extended the Debtor's exclusivity period to obtain
confirmation of its chapter 11 plan from August 21, 2023 to
November 20, 2023.
9300 Wilshire, LLC is represented by:
Victor A. Sahn, Esq.
Steve Burnell, Esq.
GREENSPOON MARDER LLP
18575 Century Park East, Suite 1900
Los Angeles, CA 90067
Tel: (213) 626-2311
Email: victor.sahn@gmlaw.com
steve.burnell@gmlaw.com
About 9300 Wilshire
9300 Wilshire, LLC is a Beverly Hills-based company engaged in
activities related to real estate.
9300 Wilshire filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. C.D. Calif. Case No.
23-10918) on Feb. 21, 2023, with $100 million to $500 million in
assets and $50 million to $100 million in liabilities. Leonid
Pustilnikov, 9300 Wilshire's manager, signed the petition.
Judge Ernest M. Robles presides over the case.
The Debtor tapped Greenspoon Marder, LLP as bankruptcy counsel
and Rutan & Tucker, LLP as special counsel.
AC & CB: Wins Cash Collateral Access Thru Sept 27
-------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida,
Jacksonville Division, authorized AC & CB Enterprises, LLC to use
cash collateral on an interim basis in accordance with the budget,
with a 10% variance, through September 27, 2023.
The Debtor is authorized to use the cash collateral with monthly
adequate protection payments to the U.S. Small Business
Administration in the amount of $453 per month on an interim basis.
The SBA is granted a replacement lien in the Debtor's post-petition
cash collateral to the extent of any post-petition usage of cash
collateral during the interim period and to the same extent,
validity, and priority as its pre-petition lien.
The remaining four Secured Lenders -- Amur Equipment Financing,
EntegraCapital, CT Corporation System, and Green Note Capital
Partners, Inc. -- will receive $0.00 adequate protections
payments.
There will be a carve-out in the budget for the inclusion of fees
due the Clerk of Court and the U.S. Trustee pursuant to 28 U.S.C.
section 1930, and to the extent not already included in the budget
for the adequate protection payments described in the Motion.
A final hearing on the matter is set for September 27 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=mgOQQv from PacerMonitor.com.
The Debtor projects total disbursements, on a weekly basis, as
follows:
$19,956 for August 2023;
$13,572 for September 2023;
$13,522 for October 2023;
$13,372 for November 2023;
$13,772 for December 2023; and
$14,022 for January 2024.
About AC & CB Enterprises, LLC
AC & CB Enterprises, LLC sought protection under Chapter 11 of the
US Bankruptcy Code (Bankr. M.D. Fla. Case No. 3:23-bk-01562) on
July 3, 2023.
In the petition signed by Adrian Coleman, president, the Debtor
disclosed up to $50,000 in assets and up to $1 million in
liabilities.
Judge Jacob A. Brown oversees the case.
Chad Van Horn, Esq., at Van Horn Law Group, P.A., represents the
Debtor as counsel.
ACRO BIOMEDICAL: Incurs $3.2 Million Net Loss in Second Quarter
---------------------------------------------------------------
Acro Biomedical Co. Ltd. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $3.19 million on $0 of revenues for the three months ended June
30, 2023, compared to a net loss of $4 million on $0 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 $7.20 million on $0 of revenues compared to a net loss of
$7.92 million on $298,500 of revenues for the six months ended June
30, 2022.
As of June 30, 2023, the Company had $539,148 in total assets,
$199,494 in total current and total liabilities, and $339,654 in
total stockholders' equity.
Acro Biomedical said, "The Company had nominal cash as of June 30,
2023, had no revenue in the first and second quarters of 2023 and
incurred a loss from operations for the six months ended June 30,
2023 and has incurred losses for the past few years. These
factors, among others, raise substantial doubt about the Company's
ability to continue as a going concern.
"The Company proposes to fund operations through sales of its
products and equity financing arrangements. However, because of
the lack of sales and the absence of any active trading market for
its common stock, its financial condition and its lack of an
operating history, the Company may not be able to raise funds for
capital expenditures, working capital and other cash requirements
and will have to rely on advances from a minority stockholder and
its officer. If the Company cannot generate revenue from its
products, it may not be able to continue in its business."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1622996/000164033423001563/acbm_10q.htm
About Acro Biomedical
Acro Biomedical Co., Ltd. has been engaged in the business of
developing and marketing nutritional products that promote
wellness
and a healthy lifestyle. The Company's business to date has
involved the purchase of products from three suppliers in the
Republic of China. The Company sells product in bulk to companies
who may use its products as ingredients in their products or sell
the products they purchase from the Company to their own
customers.
Acro Biomedical reported a net loss of $15.87 million for the year
ended Dec. 31, 2022, compared to a net loss of $7.70 million on
$1.20 million of revenues for the year ended Dec. 31, 2021. As of
Dec. 31, 2022, the Company had $687,486 in total assets, $201,116
in total liabilities, and $486,370 in total stockholders' equity.
Hackensack, New Jersey-based Prager Metis CPAs, LLC, the Company's
auditor since 2018, issued a "going concern" qualification in its
report dated July 21, 2023, citing that the Company had limited
cash as of Dec. 31, 2022, had limited gross profit and incurred a
loss from its operations for the year ended Dec. 31, 2022, and past
few years. These circumstances, among others, raise substantial
doubt about the Company's ability to continue as a going concern.
AEROCISION PARENT: $12.5MM Citizens Bank DIP Loan Has Final OK
--------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware authorized
AeroCision Parent, LLC and affiliates to use cash collateral and
obtain postpetition financing, on a final basis.
The DIP financing consists of a non-amortizing super-priority
senior secured delayed-draw term loan facility in an aggregate
principal amount not to exceed $12.5 million to be provided by a
lending consortium led by Citizens Bank, N.A. as administrative
agent. The lenders are Ally Bank, Citizens Bank, N.A., Channel
Funding, LLC, and Siemens Financial Services, Inc.
The Debtors are permitted to obtain an aggregate principal amount
of $8.5 million at any one time outstanding. The remaining balance
will be available upon entry of the Final Order.
The DIP loan is due and payable through the earlier to occur of (a)
September 25, 2023, the date that is 60 days after the Petition
Date, as such date may be extended (no more than one time) pursuant
to and in accordance with Section 2.17 of the DIP Credit Agreement;
and (b) the Termination Date for any reason whatsoever.
The "Termination Date" means the earliest of:
(a) The date that is 30 days after the date upon which the
Proposed Interim Order is entered, unless the Final Order Entry
Date has occurred on or prior to such date;
(b) The date of consummation of any transaction pursuant to
which all or substantially all of the Loan Parties' property and
assets are sold, transferred or otherwise disposed of (including
pursuant to 11 U.S.C. section 363);
(c) The Chapter 11 Plan Effective Date;
(d) The dismissal of any Chapter 11 Case or the conversion of
any Chapter 11 Case from a case under chapter 11 of the Bankruptcy
Code to a case under chapter 7 of the Bankruptcy Code;
(e) The date on which (x) is so elected by the Administrative
Agent (by written notice to the Loan Party Representative) as a
result of the occurrence and during the continuance of an Event of
Default or (y) the Obligations are accelerated or otherwise
declared (or become) due and payable in accordance with the terms
of the Agreement (whether automatically, or upon any Event of
Default or as otherwise provided thereunder) or the Financing
Order;
(f) The appointment of any Statutory Committee; or
(g) The Maturity Date will occur.
The Debtors are required to comply with these milestones:
a. On or before the date that is three days after the
Petition Date, the Bankruptcy Court will have entered the Interim
Financing Order;
b. On or before the date that is three days after the
Petition Date, the Loan Parties will have filed the Acceptable
Chapter 11 Plan and related disclosure statement, each in form and
substance reasonably acceptable to the Administrative Agent;
c. On or before the date that is 45 days after the Petition
Date, the Bankruptcy Court will have conducted a joint hearing on
confirmation of the Acceptable Chapter 11 Plan and approval of the
disclosure statement;
d. On or before the date that is three days after of the
conclusion of the Confirmation Hearing, the Bankruptcy Court will
have entered a Chapter 11 Order confirming the Acceptable Chapter
11 Plan and approving the related disclosure statement;
e. As soon as practicable, but in any event, no later than
the date that is seven days following the date upon which the
Confirmation Order is entered, the Loan Parties will have filed a
notice declaring that the occurrence of the Chapter 11 Plan
Effective Date; and
f. On or before the date that is 30 days following entry of
the Interim Financing Order, the Bankruptcy Court will have entered
the Final Financing Order.
As of the Petition Date, the Debtors had outstanding secured debt
to various lenders pursuant to the Credit Agreement dated as of
November 5, 2019, by and among (a) Bromford Industries Ltd.,
AeroCision, LLC, Numet Machining Techniques, LLC; (b) Bromford
Intermediate Holdings, Ltd., Bromford Midco Limited, AeroCision
Parent, LLC, Bromford Group Limited; (c) Citizens Bank, N.A., as
administrative agent and collateral agent for its own benefit and
the benefit of the other "Secured Parties"; and (d) the Lenders
from time to time party thereto. As of the Petition Date, the
aggregate outstanding principal amount owed by the Debtors under
the Prepetition First Lien Credit Documents was not less than
$97.224 million.
The Debtors also had outstanding secured debt to various lenders
pursuant to a Superpriority Lien Credit Agreement dated as of May
12, 2021, by and among (a) the US Borrowers, as borrowers; (b)
Parent, UK Parent, and US Holdings, as guarantors; (c) Citizens
Bank, N.A., as administrative agent and collateral agent for its
own benefit and the benefit of the other "Secured Parties"; and (d)
the Lenders from time to time party thereto. As of the Petition
Date, the aggregate outstanding principal amount owed by the
Debtors under the Prepetition Superpriority Lien Documents was not
less than $3.8 million.
The Debtors also had outstanding secured debt to various lenders
pursuant to the Second Lien Credit Agreement dated as of November
5, 2019, by and among (a) the Prepetition First Lien Loan Parties;
and (b) Stellus Capital Investment Corporation, as administrative
agent and sole lender. As of the Petition Date, the aggregate
outstanding principal amount owed by the Debtors under the
Prepetition Second Lien Credit Documents was not less than $26.250
million.
The Debtors require the use of cash collateral and the DIP loan to
finance their operations, maintain business relationships, pay
their employees, protect the value of their assets.
As adequate protection, the Secured Lenders are granted valid and
perfected replacement and additional security interests in, and
liens on all of the Debtors' right, title and interest in, to and
under all Collateral.
The Adequate Protection Liens granted to the Prepetition Agents
will secure the respective Prepetition Secured Obligations to the
extent of any Diminution in Value. The Adequate Protection Liens
will be (x) valid, binding enforceable and fully perfected, (y)
subordinate and subject only to (i) the DIP Liens, (ii) the
Prepetition Permitted Liens and (iii) the DIP Carve-Out, and (z) in
all instances, subject to the Intercreditor Agreement.
As further adequate protection of the interests of the Prepetition
Agents and the other Prepetition Secured Creditors with respect to
the respective Prepetition Secured Obligations, each of the
Prepetition Agents is granted an allowed administrative claim
against the Debtors' estates under 11 U.S.C. section 503, with
priority over all administrative expense claims and unsecured
claims against the Debtors and their estates as provided for by 11
U.S.C. section 507(b), to the extent that the Adequate Protection
Liens do not adequately protect against any Diminution in Value of
the Prepetition Agents' respective interests in the Prepetition
Collateral.
The DIP Carve-Out means: (i) all fees required to be paid to the
Clerk of the Court and to the U.S. Trustee under 28 U.S.C. section
1930(a) plus interest at the statutory rate; (ii) all reasonable
fees and expenses up to $25,000 incurred by a trustee under section
726(b) of the Bankruptcy Code; (iii) amounts deposited into the
Professional Fees Account at any time before or on the first
business day following delivery by the DIP Agent of a Carve-Out
Trigger Notice, whether allowed by the Court prior to or after
delivery of a Carve-Out Trigger Notice; and (iv) Allowed
Professional Fees of the Debtor Professionals in an aggregate
amount not to exceed $1 million incurred after the first business
day following the date of delivery by the DIP Agent of the
Carve-Out Trigger Notice, to the extent allowed at any time,
whether by interim order, procedural order, or otherwise; provided,
that under no circumstances will any success, completion, or
similar fees be paid from the DIP Carve-Out following delivery of a
Trigger Notice unless such fee was earned and payable prior to the
Trigger Date; provided, further that nothing will be construed to
impair the ability of any party to object to the fees, expenses,
reimbursement or compensation described in the Carve-Out Cap on any
other grounds.
A copy of the order is available at https://urlcurt.com/u?l=gwT4Ot
from PacerMonitor.com.
About AeroCision Parent, LLC
AeroCision Parent, LLC and affiliates are are part of an
organization known as Bromford Group, a global manufacturing
business in the aerospace, defense, and power generation industry
that was founded in the United Kingdom in 1973. Bromford supplies
turbine engine and related components to all major OEM's, including
many of the industry's most prominent manufacturers, like General
Electric Aviation, Pratt & Whitney, and Rolls Royce, among others.
The manufacturers use Bromford's components to manufacture engines
for aircraft and other vehicles.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Lead Case No. 23-11032) on July
31, 2023. In the petition signed by David Nolletti, chief
restructuring officer, the Debtor disclosed up to $500 million in
both assets and liabilities.
Judge Karen B. Owens oversees the case.
Young Conaway Stargatt & Taylor, LLP represents the Debtors as
legal counsel, Riveron Consulting, LLC as restructuring advisor,
Jefferies LLC as investment banker, and Epiq Corporate
Restructuring, LLC as notice, claims, solicitation and balloting
agent and administrative advisor.
ALASKA LOGISTICS: Gets OK to Hire Wenokur Riordan as Legal Counsel
------------------------------------------------------------------
Alaska Logistics, LLC received approval from the U.S. Bankruptcy
Court for the Western District of Washington to hire Wenokur
Riordan PLLC to serve as its Chapter 11 counsel.
Wenokur Riordan will render these legal services:
(a) take all actions necessary to protect and preserve the
Debtor's bankruptcy estate;
(b) prepare legal papers;
(c) negotiate with creditors concerning a Chapter 11 plan,
prepare a Chapter 11 plan and related documents, and take the steps
necessary to confirm and implement the proposed plan of
liquidation; and
(d) provide such other legal advice or services as may be
required in connection with the Chapter 11 case.
The firm received a total retainer of $50,000 from the Debtor.
Nathan Riordan, Esq., an attorney at Wenokur Riordan, 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:
Nathan T. Riordan, Esq.
Faye C. Rasch, Esq.
Catherine Reny, Esq.
Wenokur Riordan PLLC
600 Stewart Street, Suite 1300
Seattle, WA 98101
Telephone: (206) 682-6224
Email: nate@wrlawgroup.com
About Alaska Logistics
Alaska Logistics LLC transports materials and equipment of all
sizes, shapes and types from Seattle to Western Alaska.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Wash. Case No. 23-11250) on July 7,
2023.
In the petition signed by Allyn Long, general manage and president,
the Debtor disclosed up to $50 million in both assets and
liabilities.
Judge Christopher M. Alston oversees the case.
Wenokur Riordan, PLLC represents the Debtor as legal counsel.
ALLSTATE REALTY: Seeks Cash Collateral Access
---------------------------------------------
Allstate Realty Group, Inc. asks the U.S. Bankruptcy Court for the
Central District of California, Los Angeles Division, for authority
to use the cash collateral of its Select Portfolio Servicing, Inc.
and Shmuel Cohen.
The Debtor requires the use of cash collateral to pay the
necessary, insurance, mortgages, and other necessary business
expenses, in accordance with the budget, with a 10% variance.
The Debtor fell behind on its mortgage obligations during the
Pandemic because the prior tenants stopped paying rent. The Debtor
evicted the non-paying tenants in May 2023 and has a new tenant.
The new lease began in July and the first rental payment came due
in August 2023.
The first Lien holder is SPS with an approximate balance of $3.2
million as of the petition date per proof of claim number 3 filed
on July 7, 2023.
Shmuel Cohen is the 2nd Lien holder with an estimated balance of
$2.6 million as of the date of filing the Case.
The estimated value of the subject property is $1.615 million based
on appraisal report dated July 23, 2023, by professional appraiser
Glen Kangas, comparable sales and the Debtor's familiarity with the
area.
SPS claim is partially secured and Cohen's claim is totally
unsecured as stated by Debtor in its Motion to Value Collateral
filed on August 14, 2023.
The Debtor proposes to start making adequate protection payments to
SPS, retroactively to August 1, 2023 and continue on monthly basis
as summarized in the Debtor's cash collateral budget until the
Debtor's Chapter 11 Plan is confirmed or plan treatment stipulation
is entered into between Debtor and SPS. The first rental payment
was received in August.
A hearing on the matter is set for September 14, 2023 at 11:30
a.m.
A copy of the motion is available at https://urlcurt.com/u?l=fsejnZ
from PacerMonitor.com.
About Allstate Realty Group, Inc.
Allstate Realty Group, Inc. is a Nevada Corporation doing business
in California. The only asset of the business is the subject real
property known as: 247 S. Carmelina Avenue in the City of Los
Angeles, 90049.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 2:23-bk-13519-DS) on
June 7, 2023. In the petition signed by Joseph Kashki, chief
executive officer, the Debtor disclosed up to $50,000 in both
assets and liabilities.
Onyinye N. Anyama, Esq., at Anyama Law Firm, A Professional
Corporation, represents the Debtor as legal counsel.
AMERICAN AXLE: Egan-Jones Retains B- Senior Unsecured Ratings
-------------------------------------------------------------
Egan-Jones Ratings Company on August 9, 2023, maintained its 'B-'
foreign currency and local currency senior unsecured ratings on
debt issued by American Axle & Manufacturing, Inc. EJR also
withdraws rating on commercial paper issued by the Company.
Headquartered in Detroit, Michigan, American Axle & Manufacturing,
Inc. provides automotive products.
ANDERBY BREWING: Gets OK to Hire Wipfli LLP as Accountant
---------------------------------------------------------
Anderby Brewing, LLC received approval from the U.S. Bankruptcy
Court for the Northern District of Georgia to employ Wipfli, LLP as
accountant.
The firm's services include the preparation of tax returns and all
other financial documents and any other work necessary to assist
the Debtor with accounting requirements related to its Chapter 11
case.
The firm will be compensated as follows:
a. $1,350 for the preparation of federal and Georgia tax
returns;
b. $690 for the preparation of personal property tax return;
and
c. $60 per form for Form 1099s.
Pat Tuley, a partner at Wipfli, disclosed in a court filing that
the firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Pat Tuley
Wipfli, LLP
235 Peachtree St NE
Atlanta, GA 30303
Tel: (404) 420-5670
Email: pat.tuley@wipfli.com
About Anderby Brewing
Anderby Brewing, LLC owns and operates a brewery in Peachtree
Corners, Ga.
Anderby Brewing sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ga. Case No. 23-51983) on March 1,
2023, with as much as $1 million in both assets and liabilities.
Michael Preston Smelt, president of Anderby Brewing, signed the
petition.
Judge Sage M. Sigler oversees the case.
The Debtor tapped Michael D. Robl, Esq., at Robl Law Group, LLC as
bankruptcy counsel and Wipfli, LLP as accountant.
ANKORY CONSTRUCTION: Leon Jones Named Subchapter V Trustee
----------------------------------------------------------
The U.S. Trustee for Region 21 appointed Leon Jones, Esq., at Jones
& Walden, LLC, as Subchapter V trustee for Ankory Construction
Company, Inc.
Mr. Jones will be paid an hourly fee of $450 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Jones declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Leon S. Jones, Esq.
Jones & Walden, LLC
699 Piedmont Ave. NE
Atlanta, Georgia 30308
Phone: (404) 564-9300
Email: ljones@joneswalden.com
About Ankory Construction
Ankory Construction Company, Inc. filed a petition under Chapter
11, Subchapter V of the Bankruptcy Code (Bankr. N.D. Ga. Case No.
23-20898) on Aug. 11, 2023, with up to $50,000 in assets and
$100,001 to $500,000 in liabilities.
Judge James R. Sacca oversees the case.
William A. Rountree, Esq., at Rountree Leitman Klein & Geer, LLC
represents the Debtor as legal counsel.
APEX APPAREL: Nancy Isaacson Named Subchapter V Trustee
-------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed Nancy Isaacson,
Esq., at Greenbaum, Rowe, Smith & Davis, LP, as Subchapter V
trustee for Apex Apparel Services Co. Inc.
Ms. Isaacson will be paid an hourly fee of $410 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Isaacson declared that she is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Nancy Isaacson, Esq.
Greenbaum, Rowe, Smith & Davis, LP
75 Livingston Avenue
Roseland, NJ 08068
Phone: (973) 535-1600
Email: nisaacson@greenbaumlaw.com
About Apex Apparel
Apex Apparel Services Co. Inc. (Bankr. D.N.J. Case No. 23-16891) on
Aug. 10, 2023, with $100,001 to $500,000 in both assets and
liabilities.
Darin D. Pinto, Esq., at the Law Offices of Darin D. Pinto, P.C. is
the Debtor's bankruptcy counsel.
APOSTOLIC ASSEMBLY: Taps Womack Development as Real Estate Agent
----------------------------------------------------------------
The Apostolic Assembly of Love seeks approval from the U.S.
Bankruptcy Court for the Southern District of Texas to hire Gerald
Womack of Womack Development and Investment Realtors, Inc., as its
real estate agent.
The agent will render these services:
a. use reasonable efforts to act diligently to market the
commercial property located at 8042 Braniff Street, Houston, Texas,
77061, for sale, procure a buyer, and negotiate the sale of the
property;
b. advertise the property through means including but not
limited to, placing a "For Sale" sign, creating or placing
information, internet; and
c. disseminate information about the Property to other
realtors and prospects, including applicable disclosures, and
notices concerning the Debtor's property.
Womack Development will receive compensation equal to 6 percent of
the property sales price. If the broker represents the buyer,
broker will offer to compensate the buyer's broker, a fee of 3
percent of the sales price.
Gerald Womack, president and CEO of Womack Development, assured the
court that his firm is a "disinterested person" within the meaning
of Section 101(14) of the Bankruptcy Code.
The agent can be reached at:
Gerald Womack
Womack Development and
Investment Realtors, Inc.
4412 Almeda Rd
Houston, TX 77004
Phone: +1 713-523-7402
Email: gwomack@womackdevelopment.com
About The Apostolic Assembly
The Apostolic Assembly of Love is a tax-exempt religious
organization in Houston, Texas.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. S.D. Texas Case No. 23-32494) on July 3,
2023, with $1 million to $10 million in assets and $500,000 to $1
million in liabilities. Louis Willie Osborne, Jr., president,
signed the petition.
Judge Eduardo V. Rodriguez oversees the case.
Susan Tran Adams, Esq., at Tran Singh, LLP represents the Debtor as
legal counsel.
APPROVED ONE: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: Approved One, LLC
2730 Interlaken Dr.
Marietta GA 30062
Chapter 11 Petition Date: August 24, 2023
Court: United States Bankruptcy Court
Northern District of Georgia
Case No.: 23-58152
Judge: Hon. Jeffery W. Cavender
Debtor's Counsel: Michael Familetti, Esq.
FAMILETTI LAW FIRM
142 S. Park Square
Marietta GA 30060
Tel: 770-794-8005
Email: familettilaw@gmail.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Arturo Yancey as manager.
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/BDBE7GQ/Approved_One_LLC__ganbke-23-58152__0001.0.pdf?mcid=tGE4TAMA
ARRAY MIDCO: S&P Affirms 'CCC+' Issue Credit Rating, Outlook Neg.
-----------------------------------------------------------------
S&P Global Ratings affirmed the 'CCC+' issue credit rating on
Toronto-based in-store marketing solutions provider Array Midco
Corp. S&P also affirmed the 'CCC+' issue-level rating on the
company's term loan A. The recovery rating remains '3', reflecting
meaningful (50%-70%; rounded estimate: 50%) recovery in a default
scenario.
The negative outlook reflects elevated risks, that against the
backdrop of a tough macroeconomic environment, Array's EBITDA might
remain subdued eventually straining liquidity. Because S&P views
the company's capital structure as unsustainable, there is a
possibility of a specific default scenario including but not
limited to a distressed debt exchange, within the next 12 months.
The rating affirmation reflects that even though Array's 2023
EBITDA shows improvement, it is still susceptible to significant
volatility. Array's debt to EBITDA for the last 12 months (LTM)
ended June-2023 was elevated at 12x and EBITDA interest coverage
was below 1x. However, on a 2023 annualized basis, leverage and
EBITDA interest coverage is in the mid-7x area and about 1x,
respectively.
In 2022, the company faced several cost headwinds and, as such,
year-end 2022 EBITDA was significantly weaker than our previous
forecasts. The cost headwinds included foreign exchange weakness,
expedited freight, manufacturing challenges, and high commodity
costs. The company's EBITDA has shown signs of recovery in the
first half of 2023. Year-to-date EBITDA for the period ended June
30, 2023, on an S&P Global Ratings-adjusted basis grew 50% compared
with the same period last year. For the second half of 2023, S&P
expects the company to continue the same trend. However, it
believes the company's EBITDA generation continues to depend on
very favorable business and economic conditions and a consistent
execution of company's pricing initiatives, customer retention, and
volumes gains. Hence, there is a risk that Array's operating
performance may not be sustainable and will not recover to a pace
we previously expected.
S&P said, "Small, highly volatile EBITDA leads to heightened risks
of a specific default situation. In our view, Array's EBITDA is
very small and therefore susceptible to any unexpected
underperformance that could lead to greater volatility in EBITDA,
cash flows, and credit measures. Rising benchmark interest rates
are starting to affect coverage metrics. Despite a significantly
improved EBITDA level (greater than 50%) compared to last year, we
still estimate Array will operate with tight fixed charge coverage
of below 1x through 2023, similar to 2022. We consider cash
interest, debt amortization, and maintenance capital expenditure
(capex) to be the key fixed charges (C$30 million-C$35 million
annually) for the company. However, if the company underperforms
the next two quarters, we could view that the company is unable to
sustain through a high interest rate environment and could envision
possibility of a specific default scenario including but not
limited to a distressed debt exchange.
"We believe Array will maintain sufficient liquidity cushion.
Considering the improvement in the company's EBITDA for first half
of 2023 and our expectation that Array is on track to deliver
positive revenue and EBITDA performance for the third quarter (the
company's strongest quarter), we currently do not envision a
specific default scenario. Array's business is working capital
intensive and requires cash investments during the first half of
the year to support its revenue order book. We note that Array has
improved its working capital (receivables) and narrowed its
free-cash flow deficits over the first two quarters in 2023, a
factor which we view supportive. Furthermore, Array has about US$40
million of liquidity sources including cash of about US$11.8
million and availability under its asset-based lending facility of
about US$28 million that provides liquidity cushion for the next
year.
"The negative outlook reflects elevated risks that against backdrop
of tough macroeconomic environment, Array's EBITDA might remain
subdued eventually straining liquidity. Because we view the
company's capital structure as unsustainable, there is a
possibility of a specific default scenario including but not
limited to a distressed debt exchange, within the next 12 months.
"We could lower the ratings in the next six months if the company
underperformed its third quarter results, its liquidity position
deteriorated by way of diminishing cash balances and lower
availability on Array's asset-based lending (ABL) facility, and if
we believed that a distressed exchange is imminent in the next 12
months.
"We could raise the ratings and revise the outlook to stable if the
company can demonstrate stability and growth in EBITDA and cash
flows such that it can comfortably cover its mandatory fixed
charges."
ASPIRA WOMEN'S: Incurs $2.3 Million Net Loss in Second Quarter
--------------------------------------------------------------
Aspira Women's Health Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $2.32 million on $2.49 million of total revenue for the three
months ended June 30, 2023, compared to a net loss of $8.24 million
on $2.07 million of total revenue for the three months ended June
30, 2022.
For the six months ended June 30, 2023, the Company reported a net
loss of $8.38 million on $4.81 million of total revenue compared to
a net loss of $17.51 million on $3.96 million of total revenue for
the six months ended June 30, 2022.
As of June 30, 2023, the Company had $7.72 million in total assets,
$8.25 million in total liabilities, and a total stockholders'
deficit of $528,000.
Aspira Women's said, "We have incurred significant net losses and
negative cash flows from operations since inception, and as a
result have an accumulated deficit of approximately $507,282,000 as
of June 30, 2023. We also expect to incur a net loss and negative
cash flows from operations for the remainder of 2023. Working
capital levels may not be sufficient to fund operations as
currently planned through the next twelve months, absent a
significant increase in revenue over historic revenue or additional
financing. Given the above conditions, there is substantial doubt
about our ability to continue as a going concern.
"We expect to raise capital through sources that may include public
or private equity offerings, debt financings, the exercise of
common stock warrants, collaborations, licensing arrangements,
grants and government funding and strategic alliances, as well as
our existing at-the-market and equity line of credit facilities.
However, additional funding may not be available when needed or on
terms acceptable to us. If we are unable to obtain additional
capital, we may not be able to continue sales and marketing,
research and development, or other operations on the scope or scale
of current activity, and that could have a material adverse effect
on our business, results of operations and financial condition."
Commentary
"Our optimism continues to grow as we achieved sustained
improvement across the company this quarter. OvaWatch test volume
grew 80% in its second full quarter, contributing 14% of the total
6,289 OvaSuite tests performed. Test volume per field
representative continues to improve, growing more than 69% to 598
for the six months ended June 30, 2023, as a result of the ongoing
strategic refresh of our commercial programs," said Nicole
Sandford, Aspira's president and chief executive officer. "As we
look to the second half of the year, our focus is on the successful
expansion of OvaWatch as a longitudinal monitoring test, and the
launch of our EndoCheck blood test. Both efforts are progressing
as planned."
"Cash used in operations was $3.4 million, a decrease of nearly 46%
compared to the second quarter of last year. Fiscal discipline,
combined with the forgiveness of $1 million of debt, and an equity
raise in July that brought net proceeds of $4.3 million, has
strengthened our balance sheet and sets us up for a successful
second half," Sandford continued.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/926617/000092661723000070/awh-20230630x10q.htm
About Aspira Women's Health
Formerly known as Vermillion, Inc., Aspira Women's Health Inc. --
http://www.aspirawh.com-- is transforming women's health with the
discovery, development and commercialization of innovative testing
options and bio-analytical solutions that help physicians assess
risk, optimize patient management and improve gynecologic health
outcomes for women. OVA1 plus combines its FDA-cleared products
OVA1 and OVERA to detect risk of ovarian malignancy in women with
adnexal masses. ASPiRA GenetiXSM testing offers both targeted and
comprehensive genetic testing options with a gynecologic focus.
With over 10 years of expertise in ovarian cancer risk assessment
ASPIRA has expertise in cutting-edge research to inform its next
generation of products. Its focus is on delivering products that
allow healthcare providers to stratify risk, facilitate early
detection and optimize treatment plans.
Aspira Women's reported a net loss of $27.17 million for the year
ended Dec. 31, 2022, compared to a net loss of $31.66 million for
the year ended Dec. 31, 2021. As of Dec. 31, 2022, the Company had
$17.37 million in total assets, $10.64 million in total
liabilities, and $6.73 million in total stockholders' equity.
Woodbridge, New Jersey-based BDO USA, LLP, the Company's auditor
since 2012, issued a "going concern" qualification in its report
dated March 30, 2023, citing that the Company has suffered
recurring losses from operations and expects to continue to incur
substantial losses in the future, which raise substantial doubt
about its ability to continue as a going concern.
ATLAS LITHIUM: Incurs $9.4 Million Net Loss in Second Quarter
-------------------------------------------------------------
Atlas Lithium Corporation filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $9.40 million on $0 of revenue for the three months ended June
30, 2023, compared to a net loss of $1.01 million on $2,367 of
revenue for the three months ended June 30, 2022.
For the six months ended June 30, 2023, the Company reported a net
loss of $13.86 million on $0 of revenue compared to a net loss of
$1.85 million on $2,844 of revenue for the six months ended June
30, 2022.
As of June 30, 2023, the Company had $28.13 million in total
assets, $23.66 million in total liabilities, and $4.46 million in
total stockholders' equity.
Atlas Lithium said, "Our future short- and long-term capital
requirements will depend on several factors, including but not
limited to, the rate of our growth, our ability to identify areas
for mineral exploration and the economic potential of such areas,
the exploration and other drilling campaigns needed to verify and
expand our mineral resources, the types of processing facilities we
would need to install to obtain commercial-ready products, and the
ability to attract talent to manage our different business
activities. To the extent that our current resources are
insufficient to satisfy our cash requirements, we may need to seek
additional equity or debt financing. If the needed financing is
not available, or if the terms of financing are less desirable than
we expect, we may be forced to scale back our existing operations
and growth plans, which could have an adverse impact on our
business and financial prospects and could raise substantial doubt
about our ability to continue as a going concern."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1540684/000149315223028380/form10-q.htm
About Atlas Lithium
Atlas Lithium Corporations formerly Brazil Minerals, Inc. is
focused on advancing and developing its 100%-owned hard-rock
lithium project in Brazil's Lithium Valley, a well-known lithium
district in the state of Minas Gerais. The Company's exploration
mineral rights for lithium cover approximately 308 km2 and are
located primarily in Brazil's Lithium Valley. In addition, Atlas
Lithium has 100% ownership of mineral rights for other battery and
critical metals including nickel (222 km2), rare earths (122 km2),
titanium (89 km2), and graphite (56 km2). The Company also owns
approximately 45% of Apollo Resources Corp. (private company; iron)
and approximately 28% of Jupiter Gold Corp. (OTCQB: JUPGF) (gold
and quartzite).
Atlas Lithium reported a net loss of $5.66 million in 2022, a net
loss of $4.03 million in 2021, a net loss of $1.55 million in 2020,
a net loss of $2.08 million in 2019, and a net loss of $1.85
million in 2018.
B&G FOODS: Egan-Jones Retains B Senior Unsecured Ratings
--------------------------------------------------------
Egan-Jones Ratings Company on August 4, 2023, maintained its 'B'
foreign currency and local currency senior unsecured ratings on
debt issued by B&G Foods, Inc. EJR also withdraws rating on
commercial paper issued by the Company.
Headquartered in Parsippany-Troy Hills, New Jersey, B&G Foods, Inc.
was merged with and into its parent B&G Foods Holdings Corp.
BAKERS DEPOT: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: Bakers Depot LC
250 North St
Teterboro NJ 07608
Chapter 11 Petition Date: August 25, 2023
Court: United States Bankruptcy Court
District of New Jersey
Case No.: 23-17425
Debtor's Counsel: Vincent Roldan, Esq.
MANDELBAUM BARRETT PC
3 Becker Farm Road
Roseland, NJ 07068
Tel: 973-974-9815
Email: vroldan@mblawfirm.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Brian Negron as president.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/Q5YPCSA/Bakers_Depot_LC__njbke-23-17425__0001.0.pdf?mcid=tGE4TAMA
BANYAN CAY RESORT: Resort Given to Lender After Failed Ch.11 Sale
-----------------------------------------------------------------
David Minsky of Law360 reports that a Florida federal bankruptcy
judge approved an order allowing a Chapter 11 lender to take
possession of the Banyan Cay Resort and Golf Club on Wednesday,
August 16, 2023, after a $102. 1 million stalking horse sale with a
Colorado-based buyer failed to materialize before the end of July
2023.
About Banyan Cay Resort & Golf
Banyan Cay Resort & Golf, LLC, and affiliates constitute a business
enterprise that invests in, owns, and operates an approximately
200-acre resort and golf complex in West Palm Beach, Florida called
Banyan Cay Resort & Golf Club, along with the ownership of certain
real property incidental thereto and the provision of services
related thereto. Banyan Cay Resort first acquired the property upon
which the Development sits in August 2015 from Palm Tree Golf
Management, LLC.
Banyan Cay Resort and its affiliates sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No.
23-12386) on March 29, 2023. In the petition signed by Gerard A.
McHale, McHale, P.A., proposed chief restructuring officer, Banyan
Cay Resort disclosed up to $500 million in both assets and
liabilities.
Judge Mindy A. Mora oversees the cases.
Gerard McHale of McHale, PA, has been designated as CRO and CEO of
the Debtors. Joseph A. Pack and Jessey J. Kreh of Pack Law, serve
as the Debtors' counsel. Keen-Summit Capital Partners LLC serves
as marketing agent and broker for the Debtors.
BDD HOLDINGS: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: BDD Holdings, LLC
171 N. 400 E.
Lindon UT 84020
Business Description: The Debtor is a Single Asset Real Estate
(as defined in 11 U.S.C. Section 101(51B)).
Chapter 11 Petition Date: August 25, 2023
Court: United States Bankruptcy Court
District of Utah
Case No.: 23-23688
Judge: Hon. Joel T. Marker
Debtor's Counsel: Adam D. Ford, Esq.
FORD & CRANE PLLC
150 W. Commonwealth Ave, #204
Salt Lake City UT 84115
Tel: 213-519-4291
Email: adam.ford@fordcranelaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Bryan B. Davis as manager.
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/CIHAYWY/BDD_Holdings_LLC__utbke-23-23688__0001.0.pdf?mcid=tGE4TAMA
BEACON COFFEE: Seeks to Hire Varshawsky Huber as Accountant
-----------------------------------------------------------
Beacon Coffee Company, Inc. seeks approval from the U.S. Bankruptcy
Court for the Central District of California to hire Mark
Varshawsky, CPA of Varshawsky Huber, LLP as its accountant.
The employment of Mr. Varshawsky will be for the preparation of tax
returns, United States Trustee reports, and other accounting
services.
Mr. Varshawsky charges $300 per hour for his services and $140 to
$170 per hour for services rendered by other professional staff.
As disclosed in court filings, Mr. Varshawsky is a "disinterested
person" pursuant to Section 101(14) of the Bankruptcy Code.
Mr. Varshawsky can be reached at:
Mark S. Varshawsky, CPA
Varshawsky Huber, LLP
1297 Flynn Rd. Suite 260
Camarillo, CA 93012
Phone: 805-484-3100
Fax: 833-693-1213
Email: info@vh-cpa.com
About Beacon Coffee Company
Beacon Coffee Company, Inc. sought protection for relief under
Chapter 11 of the Bankruptcy Code (Bankr. C.D. Calif. Case No.
23-10607) on July 24, 2023, with up to $50,000 in assets and
$500,001 to $1 million in both assets and liabilities.
Judge Ronald A. Clifford,III oversees the case.
Beall & Burkhardt, APC is the Debtor's legal counsel.
BEAZER HOMES: Egan-Jones Retains BB- Senior Unsecured Ratings
-------------------------------------------------------------
Egan-Jones Ratings Company on August 9, 2023, maintained its 'BB-'
foreign currency and local currency senior unsecured ratings on
debt issued by Beazer Homes USA, Inc. EJR also withdraws rating on
commercial paper issued by the Company.
Headquartered in Atlanta, Georgia, Beazer Homes USA, Inc. designs,
builds, and sells single family homes in the Southeast, Southwest,
and South Central regions of the United States.
BELA FLOR: Seeks $12MM DIP Loan from Agrifund
---------------------------------------------
Bela Flor Nurseries, Inc. and affiliates ask the U.S. Bankruptcy
Court for the Northern District of Texas, Fort Worth Division, for
authority to use cash collateral and obtain postpetition
financing.
The Debtors seek to obtain secured, super-priority, post-petition
financing of $3 million on an interim basis and up to an additional
$9 million on a final basis for a total of $12 million from
Agrifund, LLC.
The DIP facility is due and payable through the earliest to occur
of January 26, 2024; (b) the closing date of any sale of all or
substantially all of the Debtors' assets pursuant to an order
entered by the Bankruptcy Court; (c) the acceleration of the DIP
Loan following the occurrence or during the continuation of an
Event of Default under the DIP Loan; (d) the date of conversion of
any of the Chapter 11 Cases to a case under chapter 7 of the
Bankruptcy Code or the appointment or election of a trustee under
Chapter 11 Cases; and (e) the confirmation of a plan of
reorganization or liquidation for the Debtors.
Prior to the Petition Date, Bela Flor was liable to Agrifund, LLC
for all indebtedness, liabilities and other obligations of Bela
Flor under (a) the Demand Promissory Note, dated August 4, 2022, as
well as certain modifications and amendments thereto, including but
not limited to, the Forbearance Agreement finally executed on July
7, 2023, and (c) all other agreements, documents, notes,
certificates, and instruments executed and/or delivered with, to,
or in favor of the Bank.
Bela Flor was indebted under the ARM Prepetition Loan Documents (a)
on account of Bela Flor's Obligations to ARM, in the aggregate
amount of approximately $6.9 million.
Debtor MFAF Holdings LLC was liable to Guaranty Bank, NA, as
successor-in-interest, for all indebtedness, liabilities and other
obligations of MFAF under (a) the Commercial Promissory Note, dated
November 21, 2014, and the Business Loan Agreement dated November
21, 2014, and (b) all other agreements, documents, notes,
certificates, and instruments executed and/or delivered with, to,
or in favor of the Bank.
Debtor MFAF Holdings LLC was liable to Guaranty Bank, NA, as
successor-in-interest, for all indebtedness, liabilities and other
obligations of MFAF under (a) the Commercial Promissory Note, dated
November 21, 2014, and the Business Loan Agreement dated November
21, 2014, and (b) all other agreements, documents, notes,
certificates, and instruments executed and/or delivered with, to,
or in favor of the Bank.
Debtor SMB Holdings LLC was liable to Guaranty Bank, NA, as
successor-in-interest, for all indebtedness, liabilities and other
obligations of SMB under (a) the Commercial Promissory Note, dated
April 25, 2013, and the Business Loan Agreement dated April 25,
2013, (b) the Commercial Promissory Note, dated March 2, 2017, and
the Business Loan Agreement dated March 2, 2017, and (c) all other
agreements, documents, notes, certificates, and instruments
executed and/or delivered with, to, or in favor of Guaranty.
As of the Petition Date, the SMB was indebted under the 1030 East
13th Mortgage (a) on account of SMB's Obligations (as defined in
the 1030 East 13th Mortgage) to Guaranty, in the aggregate amount
of approximately $3.3 million, plus, interest accrued and accruing
(at the rates set forth in the 1030 East 13th Mortgage), costs,
expenses, fees, and other charges.
To secure the SMB Obligations, Bela Flor granted Guaranty blanket
security interests and liens on the real and personal property of
SMB and the proceeds thereof.
The Debtor SMB Holdings LLC was liable to Old Missouri Bank, NA,
for all indebtedness, liabilities and other obligations of SMB
under (a) the Promissory Note, dated December 20, 2022, and (b) all
other agreements, documents, notes, certificates, and instruments
executed and/or delivered with, to, or in favor of OMB.
SMB was indebted under the Harrison House Mortgage (a) on account
of SMB's OMB Obligations to OMB, in the remaining principal amount
owed, plus, interest accrued and accruing, costs, expenses, fees,
other charges, and other obligations.
To secure the SMB OMB Obligations, Bela Flor granted OMB a security
interests and liens on certain real property of SMB and the
proceeds thereof, perhaps including the cash collateral.
Debtor CHIC Holdings LLC was liable to Texas Bank, NA, as
successor-in-interest, for all indebtedness, liabilities and other
obligations of CHIC under (a) the Deed of Trust, Security
Agreement, and Financing Agreement, dated June 13, 2016, and (b)
all other agreements, documents, notes, certificates, and
instruments executed and/or delivered with, to, or in favor of
Texas Bank.
As of the Petition Date, CHIC was indebted under the Henderson
Mortgage (a) on account of CHIC's Obligations to Texas Bank, in the
aggregate amount of approximately $962,000, plus, interest accrued
and accruing, costs, expenses, fees, other charges, and other
obligation.
Debtor Bela Flor was liable to AG Credit, Agricultural Credit
Association for all indebtedness, liabilities and other obligations
of Bela Flor under (a) the Credit Agreement dated October 25, 2017,
as amended, amended and restated, supplemented or otherwise
modified from time to time in accordance with its provisions, (b)
the Term Note dated October 25, 2017, as amended.
As of the Petition Date, Bela Flor was indebted under the AG Credit
Loan (a) on account of Bela Flor's Obligations to AG Credit, in the
aggregate amount of approximately $2.2 million, plus, interest
accrued and accruing, costs, expenses, fees, other charges.
The Secured Parties will receive customary adequate protection in
exchange for its consent to the Debtors' use of cash collateral and
for the priming of its liens by the liens securing the DIP Loan,
including, replacements liens against the Collateral, Superpriority
Claims (in the amount of diminution of value) senior to all other
liens and administrative expense claims, other than those held by
the DIP Lender and subject to the Post-Petition Liens and CarveOut.
The Debtors will also make interest-only payments on the Secured
Parties' Prepetition Obligations during the pendency of the Chapter
11 Cases.
A copy of the motion is available at https://urlcurt.com/u?l=UAxVS0
from PacerMonitor.com.
About Bela Flor Nurseries, Inc.
Bela Flor Nurseries, Inc. 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.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Tex. Case No. 23-42469) on August 22,
2023. In the petition signed by Mark Shapiro, chief restructuring
officer, the Debtor disclosed up to $50 million in both assets and
liabilities.
Judge Mark X. Mullin oversees the case.
Buffey E. Klein, Esq., at Husch Blackwell, LLP, represents the
Debtor as legal counsel. B. Riley Advisory Services is the
Debtor's chief restructuring officer.
BEST ROCK: Case Summary & 13 Unsecured Creditors
------------------------------------------------
Debtor: Best Rock Quarry, Inc.
26282 Neuman St.
Barstow, CA 92311
Case No.: 23-13800
Business Description: The Debtor is in the rock mining business.
Chapter 11 Petition Date: August 24, 2023
Court: United States Bankruptcy Court
Central District of California
Debtor's Counsel: Lazaro E. Fernandez, Esq.
LAW OFFICE OF LAZARO E. FERNANDEZ, INC.
3600 Lime St., Ste. 326
Riverside, CA 92501
Tel: 951-684-4474
Email: lef17@pacbell.net
Total Assets: $4,862,676
Total Liabilities: $6,794,543
The petition was signed by Scott Martin as CEO.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 13 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/NICMV7Q/Best_Rock_Quarry_Inc__cacbke-23-13800__0001.0.pdf?mcid=tGE4TAMA
BEVERLY COMMUNITY: Cash Access OK'd on Final Basis
--------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California,
Los Angeles Division, authorized Beverly Community Hospital
Association and its debtor-affiliates to use cash collateral on a
final basis in accordance with its agreement with U.S. Bank
National Association, as indenture trustee pursuant to existing
funded indebtedness facilities.
The California Statewide Communities Development Authority issued
California Statewide Communities Development Authority Revenue
Bonds (Beverly Community Hospital Association), Series 2015 in the
aggregate principal amount of $39.725 million for the benefit of
the Debtors pursuant to a Bond Indenture, dated as of December 1,
2015, between the Authority and U.S. Bank, as trustee thereunder.
The proceeds of the 2015 Bonds were lent by the Authority to the
Debtors pursuant to a Loan Agreement, dated as of December 1,
2015.
The Authority also issued California Statewide Communities
Development Authority Revenue Bonds (Beverly Community Hospital
Association), Series 2017 in the aggregate principal amount of
$19.840 million for the benefit of the Debtors pursuant to a Bond
Indenture, dated as of May 1, 2017, between the Authority and U.S.
Bank, as trustee thereunder. The proceeds of the 2017 Bonds were
lent by the Authority to the Debtors pursuant to a Loan Agreement,
dated as of May 1, 2017.
Each of the two facilities was issued and secured pursuant to a
Master Trust Indenture dated as of December 1, 2015, among the
Debtors and U.S. Bank as Master Trustee.
The Debtors are permitted to use cash collateral, including Gross
Receivables, until the earlier of (i) the Debtors' ability to use
cash collateral terminates as the result of the occurrence of a
Termination Event; (ii) October 17, 2023; or (iii) such other date
as agreed to in a pleading signed by the Master Trustee and filed
in the Bankruptcy Court and served upon all parties entitled to
notice, unless extended by further order of the Court.
As adequate protection, the Master Trustee will have a valid,
perfected and enforceable continuing supplemental lien and security
interest to the extent of any Diminution in all of the assets of
the Debtors.
As additional adequate protection for any Diminution, the Master
Trustee will have a superpriority administrative expense claim
pursuant to 11 U.S.C. Section 507(b) with recourse to and payable
from any and all assets of the Debtors' estates.
In consideration for the use of cash collateral, the Debtors will
make adequate protection payments in the amounts and at the times
set forth in the Budget. To the extent it is determined by final
order that the value of the Master Trustee's Prepetition Collateral
did not exceed the allowed secured claim of the Master Trustee in
these cases, the Adequate Protection Payments (net of any allowed
Diminution claim of the Master Trustee) will be deemed to reduce
the allowed amount of such secured claim.
The Debtors' authority to use cash collateral will terminate
without any further action by the Court, and a Termination Event
will occur without prior notice, upon the occurrence of any of the
following:
(i) the Chapter 11 Case is dismissed or converted to a case
under Chapter 7 of the Bankruptcy Code;
(ii) the Debtors fail to make the Adequate Protection Payments
when due, and such failure continues for three business days
following notice to the Debtors by the Master Trustee;
(iii) the earlier of (y) the date of the entry of an order of
the Court appointing a Chapter 11 trustee or an examiner with
enlarged powers for the Debtors; or (z) the date the Debtors file a
motion, application, or other pleading consenting to or acquiescing
in any such appointment;
(iv) an order is entered in the Chapter 11 Case over the
objection of the Master Trustee approving financing pursuant to 11
U.S.C. Section 364 that would grant an additional security interest
or a lien on any Collateral or granting a superpriority
administrative claim that is equal or superior to the superpriority
administrative claim granted to the Master Trustee under the Final
Order; or
(v) an adversary proceeding or contested matter is commenced
or joined by the Debtors challenging the amount, validity,
enforceability, priority, or extent of the Master Trustee’s
liens, security interests, or claims.
A copy of the order is available at https://urlcurt.com/u?l=qHGROg
from PacerMonitor.com.
About Beverly Community Hospital Association
Beverly Community Hospital Association and affiliates operate
general medical and surgical hospitals. The Debtors sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
C.D. Cal. Lead Case No. 23-12359) on April 19, 2023. In the
petition signed by Alice Cheng, its chief executive officer, the
Debtor disclosed up to $10 million in assets and up to $500 million
in liabilities.
Judge Sandra R. Klein oversees the case.
The Debtors tapped Sheppard, Mullin, Richter, and Hampton LLP as
legal counsel.
BIOMARIN PHARMACEUTICAL: Egan-Jones Retains BB- Sr. Unsec. Ratings
------------------------------------------------------------------
Egan-Jones Ratings Company on July 31, 2023, maintained its 'BB-'
foreign currency and local currency senior unsecured ratings on
debt issued by BioMarin Pharmaceutical Inc. EJR also withdraws
rating on commercial paper issued by the Company.
Headquartered in Novato, California, BioMarin Pharmaceutical Inc.
develops and commercializes therapeutic enzyme products.
BOLTA US: Liquidating Trustee Taps Maples Law Firm as Counsel
-------------------------------------------------------------
Gene Kohut, the liquidating trustee of Bolta US Ltd., seeks
approval from the U.S. Bankruptcy Court for the Northern District
of Alabama to employ Maples Law Firm, PC as his counsel.
The firm's services include:
a. assisting, advising and representing the liquidating
trustee in his consultations with the Debtor regarding the
administration of the Debtor's Chapter 11 case;
b. assisting, advising and representing the liquidating
trustee with respect to the Debtor's retention of professionals and
advisors in connection with the Debtor's business and the case;
c. assisting, advising and representing the liquidating
trustee in analyzing the Debtor's assets and liabilities,
investigating the extent and validity of liens and participating in
and reviewing any proposed asset sales, any asset dispositions,
financing arrangements and cash collateral stipulations or
proceedings;
d. assisting, advising and representing the liquidating
trustee in any manner relevant to reviewing and determining the
Debtor's rights and obligations under leases and other executory
contracts;
e. assisting, advising and representing the liquidating
trustee in investigating the acts, conduct, assets, liabilities and
financial condition of the Debtor, the Debtor's operations and the
desirability of the continuance of any portion of those operations,
and any other matters relevant to the case;
f. assisting, advising and representing the liquidating
trustee in connection with any sale of the Debtor's assets;
g. assisting, advising and representing the liquidating
trustee in his participation in the negotiation, formulation, or
objection to any claims asserted against the Trustee or the estate;
h. assisting, advising and representing the liquidating
trustee in understanding his powers and his duties under the
Bankruptcy Code and the Bankruptcy Rules and in performing other
services as are in the interests of those represented by the
liquidating trustee;
i. assisting, advising and representing the liquidating
trustee in the evaluation of claims and on any litigation matters,
including avoidance actions and directors and officers liability
claims; and
j. providing such other services to the liquidating trustee as
may be necessary in this case.
The firm will be paid at these rates:
Stuart M. Maples, Esq. $495 per hour
Associates and Law Clerks $250 per hour
Paralegals $100 to $245 per hour
In addition, the firm will receive reimbursement for out-of-pocket
expenses incurred.
Stuart Maples, Esq., a partner at Maples Law Firm, disclosed in a
court filing that his firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Stuart M. Maples, Esq.
Maples Law Firm, P.C.
200 Clinton Avenue West, Suite 1000
Huntsville, AL 35801
Tel: (256) 489-9779
Fax: (256) 489-9720
Email: smaples@mapleslawfirmpc.com
About Bolta US Ltd.
Bolta US Ltd., an auto parts manufacturer in Tuscaloosa, Ala.,
sought protection under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. N.D. Ala. Case No. 23-70042) on Jan. 13, 2023. In the
petition signed by its chief restructuring officer, Jeffrey Truitt,
the Debtor disclosed up to $50 million in assets and up to $100
million in liabilities.
Judge Jennifer H. Henderson oversees the case.
The Debtor tapped Stephen Gross, Esq., at McDonald Hopkins, LLC as
bankruptcy counsel; Rosen Harwood, P.C. as local bankruptcy
counsel; Winter McFarland, LLC as special counsel; and Donnelly
Penman & Partners as investment banker.
The U.S. Bankruptcy Administrator for the Northern District of
Alabama appointed an official committee to represent unsecured
creditors in the Debtor's case. The committee is represented by
Maples Law Firm, PC.
BOY SCOUTS: Abuse Claimants Want Settlement Plan Pause
------------------------------------------------------
James Nani of Bloomberg Law reports that Boy Scouts Abuse Claimants
Seek Plan Pause Amid Purdue Review
A group of Boy Scouts of America sex abuse claimants renewed their
request to pause the organization's bankruptcy settlement plan in
light of the US Supreme Court’s decision to hear a challenge to
Purdue Pharma LP's $6 billion opioid deal.
The high court last week said it will weigh whether the US
bankruptcy code permits releases of claims—without claimants'
consent—against people and entities that have connections to a
bankrupt company but aren't themselves bankrupt.
Such third-party, nonconsensual discharges—which the Purdue plan
provides the company's Sackler family owners—are among the most
hotly debated issues in Chapter 11 bankruptcy. They were a major
sticking point in the Boy Scouts' bankruptcy plan, which was
designed to settle decades' worth of sex abuse claims filed by
former Scouts.
The Boy Scout claimant group said Wednesday that the youth
organization's $2.64 billion plan should be put on hold because a
decision in Purdue could happen while its own case is on appeal.
"A stay of the plan would conserve funds which would otherwise be
spent implementing a plan that may be invalidated should the
Supreme Court rule against nonconsensual third party releases," the
Boy Scout claimants told the US Court of Appeals for the Third
Circuit in court papers Wednesday.
The Boy Scout claimants said the settlement trust set up to hand
out funds to survivors hasn't yet paid out the money, so a pause
won’t harm claimants. Tens of thousands of former Boy Scouts are
poised to be compensated for sex abuse they say they suffered as
children.
The Boy Scouts in April announced that the settlement went into
effect. The Third Circuit refused the claimants’ initial request
to pause the bankruptcy plan.
The justices said they'll hear the Purdue case in December.
The case is In re: Boy Scouts of America and Delaware BSA LLC, 3d
Cir., No. 23-01664, motion 8/16/23.
About Boy Scouts of America
The Boy Scouts of America -- https://www.scouting.org/ -- is a
federally chartered non-profit corporation under title 36 of the
United States Code. Founded in 1910 and chartered by an act of
Congress in 1916, the BSA's mission is to train youth in
responsible citizenship, character development, and self-reliance
through participation in a wide range of outdoor activities,
educational programs, and, at older age levels, career-oriented
programs in partnership with community organizations. Its
national
headquarters is located in Irving, Texas.
The Boy Scouts of America and affiliate Delaware BSA, LLC, sought
Chapter 11 protection (Bankr. D. Del. Lead Case No. 20-10343) on
Feb. 18, 2020, to deal with sexual abuse claims.
Boy Scouts of America was estimated to have $1 billion to $10
billion in assets and at least $500 million in liabilities as of
the bankruptcy filing.
The Debtors have tapped Sidley Austin LLP as their bankruptcy
counsel, Morris, Nichols, Arsht & Tunnell LLP as Delaware counsel,
and Alvarez & Marsal North America, LLC, as financial advisor.
Omni
Agent Solutions is the claims agent.
The U.S. Trustee for Region 3 appointed a tort claimants'
committee
and an unsecured creditors' committee on March 5, 2020. The tort
claimants' committee is represented by Pachulski Stang Ziehl &
Jones, LLP, while the unsecured creditors' committee is
represented
by Kramer Levin Naftalis & Frankel, LLP.
BRAINERD INDUSTRIES: Seeks to Hire Rike LLC as Accountant
---------------------------------------------------------
Brainerd Industries Incorporated seeks approval from the U.S.
Bankruptcy Court for the Southern District of Ohio to employ Rike
LLC as its accountant.
The Debtor requires an accountant to:
(1) assist with the conversion of bookkeeping over to
Quickbooks;
(2) prepare 2022 tax returns;
(3) assist with other accounting and tax related matters,
including a potential ERC appeal and monthly operating report
generation; and
(4) other related services which are mutually agreed upon.
The firm's standard hourly rate in 2023 ranges from $150 to $265.
As disclosed in court filings, Rike LLC is a "disinterested person"
pursuant to Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
David Rike, CPA
Rike LLC
255 Regency Ridge Dr.
Washington Township, OH 45459
Phone: +1 937-433-5925
About Brainerd Industries
Brainerd Industries Incorporated is a fabricated metal product
manufacturer in Miamisburg, Ohio.
Brainerd Industries Incorporated filed Chapter 11 petition (Bankr.
S.D. Ohio Case No. 23-30432) on March 22, 2023, with $1 million to
$10 million in both assets and liabilities. Gregory W. Fritz,
president, signed the petition.
Judge Guy R. Humphrey oversees the case.
The Debtor tapped Coolidge Wall Co., L.P.A. as legal counsel and
Rike LLC as accountant.
BRINK'S CO: Egan-Jones Retains B+ Senior Unsecured Ratings
----------------------------------------------------------
Egan-Jones Ratings Company on August 4, 2023, maintained its 'B+'
foreign currency and local currency senior unsecured ratings on
debt issued by Brink's Company. EJR also withdraws rating on
commercial paper issued by the Company.
Headquartered in Richmond, Virginia, Brink's Company provides
security services globally.
CAIRO HOLDING: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: Cairo Holding Company, Inc.
6200 Highway 61 S
Vicksburg, MS 39180
Business Description: The Debtor is engaged in activities related
to real estate.
Chapter 11 Petition Date: August 25, 2023
Court: United States Bankruptcy Court
Southern District of Mississippi
Judge: Hon. Jamie A Wilson
Debtor's Counsel: J. Walter Newman IV, Esq.
NEWMAN & NEWMAN
587 Highland Colony Parkway
Ridgeland, MS 39157
Tel: 601-948-0586
Email: wnewman95@msn.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Michael Cappaert as President and Patty
Cappaert POA for Michael Cappaert.
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/WOHEJJY/Cairo_Holding_Company_Inc__mssbke-23-01954__0001.0.pdf?mcid=tGE4TAMA
CALUMET PAINT: May Use Cash Collateral Thru Dec 31
--------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois,
Eastern Division, authorized Calumet Paint & Wallpaper, Inc. to use
cash collateral on an interim basis and provide related relief, for
the period from September 1 to December 31, 2023, in accordance
with the budget.
In return for the Debtor's continued interim use of cash
collateral, Pratt & Lambert United, Inc. and PPG Architectural
Finishes, Inc. are granted as adequate protection for the
diminution in value of their purported secured interests:
1. The Debtor will permit the Secured Creditors to inspect,
upon reasonable notice, within reasonable hours, the Debtor's books
and records;
2. The Debtor will maintain and pay premiums for insurance to
cover all of its assets from fire, theft and water damage;
3. The Debtors will, upon reasonable request, make available
to the Secured Creditors evidence of that which constitutes their
collateral or proceeds;
4. The Debtor will properly maintain its assets in good repair
and properly manage its business; and
5. The Secured Creditors will be granted valid, perfected,
enforceable security interests in and to the Debtor's post-petition
assets, including all proceeds and products which are now or
hereafter become property of this estate to the extent and priority
of their alleged pre-petition liens, if valid, but only to the
extent of any diminution in the value of such assets during the
period from the commencement of the Debtor's Chapter 11 case
through December 31, 2023.
A further hearing on the Motion is scheduled for December 13 at 10
a.m.
A copy of the Court's order and the Debtor's budget is available at
https://urlcurt.com/u?l=nOH8kl from PacerMonitor.com.
The Debtor projects $92,310 in total expenses for September 2023.
About Calumet Paint & Wallpaper, Inc.
Calumet Paint & Wallpaper, Inc. is an Illinois corporation
operating from leased premises at 12120 Western Avenue, Blue
Island, Illinois.
Calumet Paint has been in business since 1957 and is currently an
authorized Benjamin Moore retailer specializing in the sale of
interior and exterior paints, stains and related supplies.
Calumet Paint sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ill. Case No. 21-11709 on October 13,
2021. In the petition signed by Mark R. Lavelle, president, the
Debtor disclosed up to $1 million in both assets and liabilities.
Judge Timothy A. Barnes oversees the case.
David K. Wench, Esq., at Burke, Warren, MacKay and Serritella, PC
is the Debtor's counsel.
CAPPAERT MANUFACTURED: Voluntary Chapter 11 Case Summary
--------------------------------------------------------
Debtor: Cappaert Manufactured Housing, Inc.
6200 Highway 61 S
Vicksburg, MS 39180
Business Description: The Debtor is a home builder in Vicksburg,
Mississippi.
Chapter 11 Petition Date: August 25, 2023
Court: United States Bankruptcy Court
Southern District of Mississippi
Case No.: 23-01955
Judge: Hon. Jamie A. Wilson
Debtor's Counsel: Walter Newman IV, Esq.
NEWMAN & NEWMAN
587 Highland Colony Parkway
Ridgeland, MS 39157
Tel: 601-948-0586
Email: wnewman95@msn.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Michael Cappaert as President and Patty
Cappaert POA for Michael Cappaert.
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/XBHBHPY/Cappaert_Manufactured_Housing__mssbke-23-01955__0001.0.pdf?mcid=tGE4TAMA
CAPROCK LAND: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: CapRock Land Company, LLC
d/b/a CapRock Grain
1516 S. Bryan Street #28
Amarillo, TX 79102
Business Description: CapRock is a global logistics company that
manages organic feed ingredients around the
world to the benefit of its end customers.
CapRock operates seven storage facilities
across the United States.
Chapter 11 Petition Date: August 25, 2023
Court: United States Bankruptcy Court
Northern District of Texas
Case No.: 23-20172
Judge: Hon. Robert L. Jones
Debtor's Counsel: Steven L. Hoard, Esq.
MULLIN HOARD & BROWN, LLP
P.O. Box 31656
Amarillo, TX 79120
Tel: 806-372-5050
Email: shoard@mhhba.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Thomas Bunkley as owner.
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/4RGK6RI/CapRock_Land_Company_LLC__txnbke-23-20172__0003.0.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/PFVVVLI/CapRock_Land_Company_LLC__txnbke-23-20172__0001.0.pdf?mcid=tGE4TAMA
CARROLS RESTAURANT: S&P Upgrades ICR to 'B-', Outlook Positive
--------------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on Syracuse,
N.Y.-based quick service restaurant (QSR) franchisee Carrols
Restaurant Group Inc. to 'B-' from 'CCC+'.
At the same time, S&P raised its issue-level rating on its term
loan facility and revolving credit facility to 'B+' from 'B' and
raised its issue-level rating on its senior unsecured notes to
'CCC' from 'CCC-'.
The positive outlook reflects the potential for an upgrade within
the next 12 months if Carrols can sustain improvements to its
profitability and FOCF while maintaining leverage below 6x.
The upgrade reflects Carrols' better-than-expected operating
performance and our expectation for S&P Global Ratings-adjusted
leverage of high-5x in 2023. Restaurant sales grew 9.8% during the
second fiscal quarter (ended July 2, 2023), led by menu price
increases and less discounting and promotional activity. S&P Global
Ratings-adjusted EBITDA margins expanded 290 basis points (bps)
during the quarter compared to the prior year, driven by higher
average checks and moderating cost pressures. Commodity and average
hourly rate inflation for the Burger King brand declined to 3.3%
and 4.4%, respectively, during second-quarter 2023 compared to peak
inflation in the mid- to high-teens percent during the prior year.
S&P said, "Although we expect commodity and wage inflation of a
mid-single-digit percent for 2023, we believe these costs will be
more than offset by comparable restaurant sales growth. S&P Global
Ratings-adjusted debt to EBITDA improved to 5.8x during the second
quarter, from 8x at fiscal year-end 2022, and we forecast adjusted
leverage remaining below 6x through fiscal 2024 as EBITDA growth
continues.
"We expect Carrols will prioritize refreshing its existing
restaurant base to improve customer traffic trends and
profitability. Carrols will likely focus its efforts on updating
its restaurant store base through unit remodels and technology
updates to enhance its average unit volumes (AUVs) while opening a
limited number of new units. We anticipate that Carrols will
increase its capital spending in fiscal 2024 by $20 million to
roughly $70 million as it strategically accelerates restaurant
remodels and invests in technology upgrades, both of which the
company will receive contributions for from its franchisor through
its Royal Reset program. Customer traffic decreased roughly 2% for
Carrols' Burger King restaurants, which declined sequentially
relative to its 1% decline during the first quarter. As such, this
marked the eighth consecutive quarter of negative traffic. However,
as Burger King's new marketing initiatives and product launches
roll out, including the recent release of the value-focused chicken
wrap, it may have the potential to stabilize declining guest
counts, in our view.
"Carrols has adequate liquidity with no near-term maturities, and
we project positive free cash flow generation. As of July 2, 2023,
Carrols had roughly $41 million of balance sheet cash with an
undrawn balance on its $215 million revolving credit facility.
Carrols generated roughly $35 million of reported FOCF in the
second quarter, a significant improvement to its breakeven cash
flow generation during the first quarter of 2023. We project
Carrols will generate roughly $40 million of FOCF for fiscal 2023
after accounting for capital spending of $50 million, primarily for
restaurant remodels and technology investments.
"Carrols has no immediate maturities, with its term loan and
revolving credit facility maturing in 2026 and its $300 million
senior unsecured notes maturing in 2029. The majority of Carrols'
outstanding debt is fixed rate, limiting near-term pressure from
the higher interest rate environment. We anticipate current debt
levels to remain relatively unchanged absent a modest level of
contractual term loan amortization.
"The positive outlook reflects the potential that we will raise our
rating if Carrols can sustain improvements to its operating
performance and FOCF generation while demonstrating a prudent
growth strategy.
"We could revise our outlook to stable if we expect Carrols will
sustain adjusted leverage at 6x or higher, possibly due to softer
operating results or a shift to a more aggressive debt-funded
acquisition strategy."
S&P could raise its rating if:
-- Carrols can sustain profitability improvements while
stabilizing customer traffic trends, leading to annual FOCF of at
least $30 million; and
-- The company demonstrates a more conservative acquisition
strategy with S&P Global Ratings-adjusted leverage sustained below
6x.
CBL & ASSOCIATES: Shareholders Want to Get $3.5 Million in Fees
---------------------------------------------------------------
Hilary Russ of Law360 reports that lawyers for investors in
formerly bankrupt mall operator CBL & Associates Properties Inc.
asked a Tennessee federal court Monday, August 14, 2023, for $3.5
million in attorney fees and final approval of their deal to end
their putative class action over allegations that the company was
slow to disclose a hefty legal settlement in a separate case.
About CBL & Associates
CBL & Associates Properties, Inc. -- http://www.cblproperties.com/
-- is a self-managed, self-administered, fully integrated real
estate investment trust (REIT) that is engaged in the ownership,
development, acquisition, leasing, management and operation of
regional shopping malls, open-air and mixed-use centers, outlet
centers, associated centers, community centers, and office
properties.
CBL's portfolio is comprised of 107 properties totaling 66.7
million square feet across 26 states, including 65 high-quality
enclosed, outlet and open-air retail centers and 8 properties
managed for third parties. It seeks to continuously strengthen its
company and portfolio through active management, aggressive
leasing and profitable reinvestment in its properties.
CBL, CBL & Associates Limited Partnership and certain other related
entities filed voluntary petitions for reorganization under Chapter
11 of the Bankruptcy Code (Bankr. S.D. Texas Lead Case No.
20-35226) on Nov. 1, 2020. At the time of the filing, the Debtors
disclosed assets of between $1 billion and $10 billion and
liabilities of the same range.
Judge David R. Jones oversees the cases.
The Debtors tapped Weil, Gotshal & Manges LLP as their legal
counsel, Moelis & Company as restructuring advisor and Berkeley
Research Group, LLC as financial advisor. Epiq Corporate
Restructuring, LLC, is the claims agent.
On Nov. 13, 2020, the U.S. Trustee for Region 6 appointed an
official committee of unsecured creditors in the Debtors'
bankruptcy cases. McDermott Will & Emery, LLP and AlixPartners,
LLP serve as the committee's legal counsel and financial advisor,
respectively.
Judge Jones confirmed the Debtors' joint Chapter 11 plan of
reorganization on Aug. 11, 2021.
CCI HOLDINGS: Seeks Cash Collateral Access
------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida, Tampa
Division, authorized CCI Holdings Group, LLC to use cash collateral
on an interim basis, retroactive to July 14, 2023.
As previously reported by the Troubled Company Reporter, Creditor C
T Corporation System, as representative, may claim blanket liens
against the Debtor's assets.
The Debtor estimates that the collective claims of the Secured
Creditors are secured by $285,6141. The Secured Creditor Assets
include $112,512 in cash and $173,102 in accounts receivable.
The Debtor requires the use of cash collateral to fund its
operating expenses and costs of administration in the Chapter 11
case.
The court ruled 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 prepetition 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 matter is set for August 31, 2023 at
2:30 p.m.
A copy of the order is available at https://urlcurt.com/u?l=HHF8bs
from PacerMonitor.com.
About CCI Holdings Group, LLC
CCI Holdings Group, LLC is a licensed and bonded concrete
contractor.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 23-02988) on July 14,
2023.
In the petition signed by Petar J. Pitesa, authorized member, the
Debtor disclosed $786,813 in assets and $1,330,069 in liabilities.
Judge Catherine Peek McEwen oversees the case.
Buddy D. Ford, Esq. represents the Debtor as legal counsel.
CELSIUS NETWORK: Fine-Tunes Plan Ahead of Oct. 2 Hearing
--------------------------------------------------------
Celsius Network LLC, et al., submitted a Fourth Revised Disclosure
Statement for the Revised Joint Chapter 11 Plan of Reorganization
dated August 17, 2023.
The Plan provides for an allocation of the entire value of the
Debtors' Estates among their creditors and other stakeholders. The
Plan includes many compromises that are meant to create the most
equitable, efficient, and economical outcome for all creditors and
stakeholders.
The ultimate goal of the Chapter 11 Cases has always been to find a
way to limit the harm to creditors and distribute as much value to
creditors as possible. To that end, from day one, the Debtors have
been committed to preserving the value of the Cryptocurrency on the
Debtors' platform. In the early stages of these Chapter 11 Cases,
the Debtors negotiated a security protocol with the Committee that
has governed the Debtors' storage and use of Cryptocurrency during
these Chapter 11 Cases.
Like in the prior iteration of the Plan, each Holder of an Allowed
General Unsecured Claim shall receive a combination of (a) Liquid
Cryptocurrency or Cash, (b) Litigation Proceeds, and (c) NewCo
Common Stock sufficient to provide a recovery of the same
percentage as the Class 5 (General Earn Claim) recovery set forth
in this Disclosure Statement.
In the event that the Debtors pursue the Orderly Wind Down, each
Holder of an Allowed General Unsecured Claim shall receive its Pro
Rata share of (a) the Liquid Cryptocurrency Distribution Amount (or
an equivalent amount of Cash), (b) the Backup MiningCo Common
Stock, (c) the Litigation Proceeds, and (d) the Illiquid Recovery
Rights.
The Debtors and the Post-Effective Date Debtors, as applicable,
shall fund distributions under the Plan with: (1) Cash on hand as
of the Effective Date, including from the Plan Sponsor Contribution
and net proceeds from the sale of GK8; (2) Liquid Cryptocurrency
(in the Liquid Cryptocurrency Distribution Amount); (3) NewCo
Common Stock; and (4) Litigation Proceeds.
The Voting Deadline is September 22, 2023, at 4:00 p.m. The Plan
Objection Deadline is September 22, 2023, at 4:00 p.m.
The Confirmation Hearing is scheduled for October 2, 2023, at 2:00
p.m.
A copy of the Fourth Revised Disclosure Statement dated August 17,
2023, is https://urlcurt.com/u?l=DVpEZo from Stretto, the claims
agent.
Counsel for the Debtors:
Joshua A. Sussberg, Esq.
KIRKLAND & ELLIS LLP
KIRKLAND & ELLIS INTERNATIONAL LLP
601 Lexington Avenue
New York, NY 10022
Telephone: (212) 446-4800
Facsimile: (212) 446-4900
- and -
Patrick J. Nash, Jr., Esq.
Ross M. Kwasteniet, Esq.
Christopher S. Koenig, Esq.
Dan Latona, Esq.
KIRKLAND & ELLIS LLP
KIRKLAND & ELLIS INTERNATIONAL LLP
300 North LaSalle
Chicago, IL 60654
Telephone: (312) 862-2000
Facsimile: (312) 862-2200
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.
CENTERPOINT PRODUCTIONS: Frances Smith Named Subchapter V Trustee
-----------------------------------------------------------------
The U.S. Trustee for Region 6 appointed Frances Smith, Esq., at
Ross, Smith & Binford, PC, as Subchapter V trustee for CenterPoint
Productions, Inc.
Ms. Smith will be paid an hourly fee of $450 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Smith declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Frances A. Smith, Esq.
Ross, Smith & Binford, PC
700 N. Pearl Street, Ste. 1610
Dallas, TX 75201
Phone: 214-593-4976
Fax: 214-377-9409
Email: frances.smith@rsbfirm.com
About Centerpoint Productions
Centerpoint Productions, Inc. is a manufacturer of commercial
cabinetry in Dallas, Texas.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. N.D. Texas Case No. 23-31716) on Aug. 10,
2023, with up to $50,000 in assets and up to $10 million in
liabilities. David Horowitz, president, signed the petition.
Eric A. Liepins, Esq. represents the Debtor as legal counsel.
CHART INDUSTRIES: Egan-Jones Retains BB+ Senior Unsecured Ratings
-----------------------------------------------------------------
Egan-Jones Ratings Company on August 9, 2023, maintained its 'BB+'
foreign currency and local currency senior unsecured ratings on
debt issued by Chart Industries, Inc.
Headquartered in Ball Ground, Georgia, Chart Industries, Inc.
operates as a global manufacturer of equipment used in the
production, storage, and end-use of hydrocarbon and industrial
gases.
CHARTER COMMUNICATIONS: Egan-Jones Retains BB Sr. Unsec. Ratings
----------------------------------------------------------------
Egan-Jones Ratings Company on August 3, 2023, maintained its 'BB'
foreign currency and local currency senior unsecured ratings on
debt issued by Charter Communications, Inc. EJR also withdraws
rating on commercial paper issued by the Company.
Headquartered in Stamford, Connecticut, Charter Communications,
Inc. operates cable television systems in the United States.
CHINAH USA: Wins Interim Cash Collateral Access
-----------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
authorized Chinah USA LLC and affiliates to use cash collateral on
an interim basis in accordance with the budget, with a 10%
variance.
Ten secured note holders have extended credit to the Debtors and
assert a lien on the cash collateral of all the Debtors' assets.
The U.S. Small Business Administration and JP Morgan Chase also
assert liens senior to the Secured Note Holders against Chi Na
Jersey City's assets.
The Debtors represent that the holders of 2023 Secured Notes have
duly perfected senior security interests, except with respect to
Chi Na Jersey City in which they hold a subordinate security
interest, in all of the Debtors' personal property, including the
proceeds thereof, by virtue of the liens granted to them under the
2023 Security Agreements and the filing of a UCC-1 Financing
Statements evidencing such interests.
As of the Filing Date, the Debtors assert that they were indebted
to the holders of the 2023 Secured Notes in the aggregate
approximate amount of $106,000.
The Debtors represent that the U.S Small Business Administration
has a duly perfected subordinate security interest in all of the
Chi Na Jersey City's personal property, including the proceeds
thereof, by virtue of a note and security agreement, entered into
by Chi Na Jersey City on May 13, 2020, and the filing of a UCC-1
Financing Statement evidencing such interest.
The Debtors have represented that they believe, in 2019, Chi Na
Jersey City entered into two secured loans with JP Morgan Chase.
Chase asserts a lien on all of Chi Na Jersey City's assets as
indicated in three UCC-1 financing statements with the New Jersey
Secretary of State. Chi Na Jersey City is presently investigating
the Chase Loans and liens asserted in connection therewith.
As adequate protection, the Secured Creditors are granted
replacement liens in their pre-petition and post-petition assets
and proceeds, including cash Collateral, to protect them from
Collateral Diminution. These replacement liens will be granted to
the extent that the Secured Creditors had a valid security interest
in the pre-petition assets on the Petition Date, and the order of
priority, nature, and validity will remain the same as of the
Filing Date.
As additional adequate protection for the use of cash collateral
Chi Na Jersey City, Chi Na Jersey City will pay to the SBA and
Chase monthly debt service payments, as provided for in the
underlying loan documents, at the contract (non-default) rate of
interest.
The Replacement Liens and security interests granted are
automatically deemed perfected upon entry of the Order without the
necessity of the Secured Creditors having to take possession, file
financing statements, mortgages or other typical security
documents.
The Debtors' authorization to use cash collateral will immediately
terminate without further Order on the earlier of: (a) September
28, 2023, at 5 p.m.; (b) the entry of an order granting any party
relief from the automatic stay; (c) the entry of an order
dismissing the Chapter 11 proceedings or converting these
proceedings to a case under Chapter 7 of the Bankruptcy Code; (d)
the entry of an order confirming a plan(s) of reorganization; or
(e) the entry of an order by which this Order is reversed, revoked,
stayed, rescinded, modified or amended.
A final hearing on the matter is set for September 28 at 10 a.m.
A copy of the court's order and the Debtor's budget is available at
https://urlcurt.com/u?l=7QWOUD from PacerMonitor.com.
The Debtor projects total projected cash outflows, on a weekly
basis, as follows:
$30,355 for the week ending September 3, 2023;
$31,376 for the week ending September 10, 2023;
$31,376 for the week ending September 17, 2023; and
$31,376 for the week ending September 24, 2023.
About Chinah USA LLC
Chinah USA LLC operates a full-service restaurant business
specializing in Chinese food. The Debtor sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. N.Y. Case No.
23-11157) on July 24, 2023. In the petition signed by Hegel Hei,
chief executive officer, the Debtor disclosed up to $50,000 in
assets and up to $10 million in liabilities.
Judge David S. Jones oversees the case.
Erica Aisner, Esq., at Kirby Aisner and Curley LLP, represents the
Debtor as legal counsel.
CHRISTMAS TREE SHOPS: Workers Cannot Get Promised Bonuses
---------------------------------------------------------
Steven Church of Bloomberg News reports that management disarray
during the final weeks of Christmas Tree Shops Inc. will block
store employees from getting bonuses they were wrongly promised to
stay on the job during going-out-of-business sales, according to
the bankrupt discount retailer's lender.
At the start of a court hearing Wednesday, August 16, 2023, a
disagreement between company managers and the lender who funded the
chain's liquidation threatened to obstruct paychecks for about
1,500 store employees until US Bankruptcy Judge Thomas M. Horan
vowed to reject all lawyer fees unless the workers were paid.
About Christmas Tree Shops
Christmas Tree Shops is a home-decor retailer that was spun off
from Bed Bath & Beyond in 2020.
Christmas Tree Shops Inc. sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Del. Case No. 23-10576) on May 5,
2023. In its petition, the Debtor reports between $50 million and
$100 million in assets and between $100 million and $500 million in
debt.
The Debtor's counsel:
Evelyn J. Meltzer
Troutman Pepper Hamilton Sanders, LLP
302-777-6500
evelyn.meltzer@troutman.com
CINEMARK HOLDINGS: Egan-Jones Retains CC Senior Unsecured Ratings
-----------------------------------------------------------------
Egan-Jones Ratings Company on August 3, 2023, maintained its 'CC'
foreign currency and local currency senior unsecured ratings on
debt issued by Cinemark Holdings Inc. EJR also withdraws rating on
commercial paper issued by the Company.
Headquartered in Plano, Texas, Cinemark Holdings Inc. operates as a
movie theater.
CITRIX SYSTEMS: Egan-Jones Retains BB+ Senior Unsecured Ratings
---------------------------------------------------------------
Egan-Jones Ratings Company on August 9, 2023, maintained its 'BB+'
foreign currency and local currency senior unsecured ratings on
debt issued by Citrix Systems, Inc. EJR also withdraws rating on
commercial paper issued by the Company.
Headquartered in Fort Lauderdale, Florida, Citrix Systems, Inc.
operates as a cloud computing and virtualization technology
company.
CLEAR CHOICE: Court OKs Cash Collateral Access Thru Oct 2
---------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida, Fort
Myers Division, authorized Clear Choice Shutters, Inc. to use cash
collateral on an interim basis in accordance with the budget,
through October 2, 2023.
The Debtor is permitted to use cash collateral to pay: (a) amounts
expressly authorized by the Court, including payments to the U.S.
Trustee for quarterly fees; and (b) current and necessary expenses
set forth in the budget, plus an amount not to exceed 10% for the
expenses.
During the interim period, First Horizon Bank will have a perfected
post-petition lien against cash collateral to the same extent and
with the same validity and priority as its respective prepetition
lien, without the need to file or execute any documents as may
otherwise be required under applicable non-bankruptcy law. The
replacement lien(s) granted herein will secure all obligations
owing from the Debtor to First Horizon Bank.
A continued hearing on the matter is set for October 2 at 2 p.m.
A copy of the Court's order and the Debtor's budget is available at
https://urlcurt.com/u?l=qprqsN from PacerMonitor.com.
The Debtor projects total selling and administrative costs, on a
weekly basis, as follows:
$29,699 for the week ending August 26, 2023;
$30,449 for the week ending September 2, 2023;
$24,982 for the week ending September 9, 2023;
$25,060 for the week ending September 16, 2023;
$23,873 for the week ending September 23, 2023; and
$24,427 for the week ending September 30, 2023;
About Clear Choice Shutters, Inc.
Clear Choice Shutters, Inc. is a Florida corporation that was
formed in January 2006. CCS's corporate office is located in
Naples, Florida. CCS supplies and installs a wide variety of
shutters, doors, and hurricane-protection building supplies to the
Southwest Florida community for all types of structures, including
single family homes, high-rise condominiums, and commercial
buildings.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 23-00638) on June 2,
2023. In the petition signed by Kenneth B. Pytlik, president, the
Debtor disclosed up to $10 million in both assets and liabilities.
Judge Caryl E. Delano oversees the case.
R. Scott Shuker, Esq., at Shuker & Dorris, P.A., represents the
Debtor as legal counsel.
CLEMMER'S CONSTRUCTION: Taps R. Keith Johnson as Legal Counsel
--------------------------------------------------------------
Clemmer's Construction, LLC seeks approval from the U.S. Bankruptcy
Court for the Western District of North Carolina to hire the Law
Offices of R. Keith Johnson, P.A. as its counsel.
The firm's services include:
(a) providing the Debtor with legal advice regarding its
powers and duties in the continued operation of its business and
management of its properties;
(b) negotiating, preparing, and pursuing confirmation of a
Chapter 11 plan and approval of a disclosure statement, and all
related reorganization agreements or documents;
(c) preparing legal papers;
(d) representing the Debtor in all adversary proceedings
related to the bankruptcy case;
(e) representing the Debtor in all litigation arising from or
relating to causes of action owned by the estate or defending
causes of action brought against the estate, in any forum;
(f) appearing in court; and
(g) performing all other legal services for the Debtor that
may be necessary and proper in the Chapter 11 proceeding.
R. Keith Johnson, Esq., the firm's attorney who will be providing
the services, will be paid at his hourly rate of $500.
Mr. Johnson disclosed in a court filing that he is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
R. Keith Johnson, Esq.
Law Offices of R. Keith Johnson, P.A.
8840 1275 Highway 16 South
Stanley, NC 28164
Tel: (704)-827-4200
Fax: 704-827-4477
Email: kjparalegal@bellsouth.net
About Clemmer's Construction
Clemmer's Construction, LLC filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. W.D.N.C. Case No.
23-40136) on August 3, 2023, listing $100,001 to $500,000 in assets
and $500,001 to $1 million in liabilities.
Judge J Craig Whitley presides over the case.
R. Keith Johnson, Esq., at Law Offices of R. Keith Johnson, P.A.
represents the Debtor as counsel.
CLOUD VENTURES 1: Seeks to Extend Plan Deadline to October 23
-------------------------------------------------------------
Cloud Ventures 1, LLC, doing business as Pipeline Trenchers Group
asks the U.S. Bankruptcy Court for the Northern District of Texas
to extend its deadline for filing a plan of reorganization and
disclosure statement to October 23, 2023, and to confirm a plan
by December 7, 2023.
Counsel for the United States Trustee is unopposed to setting the
new deadlines.
Unless extended, the deadline for filing the small business case
plan of reorganization and disclosure statement is July 25, 2023,
and to confirm a plan by September 8, 2023.
Cloud Ventures 1, LLC, doing business as Pipeline Trenchers Group
is represented by:
Craig Douglas Davis, Esq.
DAVIS, ERMIS & ROBERTS, P.C.
1521 N. Cooper, Suite 860
Arlington, TX 76011
Tel: (817) 265-8832
About Cloud Ventures 1
Cloud Ventures 1, LLC, doing business as Pipeline Trenchers
Group, filed a Chapter 11 bankruptcy petition (Bankr. N.D. Texas
Case No. 23-40228) on Jan. 26, 2023, with as much as $1 million
in both assets and liabilities. Judge Mark X. Mullin oversees the
case.
The Debtor tapped Davis Ermis & Roberts, P.C. as legal counsel
and Hagen Sharp & Company, PLLC as accountant.
COEUR MINING: Egan-Jones Retains B+ Senior Unsecured Ratings
------------------------------------------------------------
Egan-Jones Ratings Company on July 31, 2023, maintained its 'B+'
foreign currency and local currency senior unsecured ratings on
debt issued by Coeur Mining. EJR also withdraws rating on
commercial paper issued by the Company.
Headquartered in Chicago, Illinois, Coeur Mining serves customers
globally.
COMMUNITY HEALTH: Egan-Jones Retains CCC+ Senior Unsecured Ratings
------------------------------------------------------------------
Egan-Jones Ratings Company on July 31, 2023, maintained its 'CCC+'
foreign currency and local currency senior unsecured ratings on
debt issued by Community Health Systems, Inc. EJR also withdraws
rating on commercial paper issued by the Company.
Headquartered in Franklin, Tennessee, Community Health Systems,
Inc. operates as a hospital.
CONGREGATION COFFEE: Taps Patrick J. Gros CPA as Accountant
-----------------------------------------------------------
Congregation Coffee, LLC received approval from the U.S. Bankruptcy
Court for the Eastern District of Louisiana to employ Patrick J.
Gros CPA APAC.
The Debtor requires an accountant to prepare its monthly operating
reports and provide other accounting services.
The firm will be paid at these rates:
Partners $250 per hour
Managers $175 per hour
Seniors $150 per hour
Staff & Paraprofessionals $110 per hour
Patrick Gros, CPA, a partner at Patrick J. Gros CPA APAC, disclosed
in a court filing that his firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Patrick J. Gros, CPA
Patrick J. Gros CPA APAC
651 River Highlands Blvd.
Covington, LA 70433
Telephone: (985) 898-3512
Email: info@PJGrosCPA.com
About Congregation Coffee
Congregation Coffee, LLC filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. E.D. La. Case No.
23-10879) on June 6, 2023, with $100,001 to $500,000 in assets and
$500,001 to $1 million in liabilities. Judge Meredith S. Grabill
oversees the case.
The Debtor tapped Stewart Peck, Esq., at Lugenbuhl Wheaton Peck
Rankin & Hubbard as legal counsel and Patrick J. Gros CPA APAC as
accountant.
CONSOLIDATED COMMUNICATIONS: Egan-Jones Retains B- Unsec. Ratings
-----------------------------------------------------------------
Egan-Jones Ratings Company on July 31, 2023, maintained its 'B-'
foreign currency and local currency senior unsecured ratings on
debt issued by Consolidated Communications Holdings, Inc. EJR also
withdraws rating on commercial paper issued by the Company.
Headquartered in Mattoon, Illinois, Consolidated Communications
Holdings, Inc. offers telecommunications services.
CORECIVIC INC: Egan-Jones Retains BB+ Senior Unsecured Ratings
--------------------------------------------------------------
Egan-Jones Ratings Company on August 4, 2023, maintained its 'BB+'
foreign currency and local currency senior unsecured ratings on
debt issued by CoreCivic, Inc. EJR also withdraws rating on
commercial paper issued by the Company.
Headquartered in Nashville, Tennessee, CoreCivic, Inc. provides
detention and corrections services to governmental agencies.
COTTONWOOD VENDING: Voluntary Chapter 11 Case Summary
-----------------------------------------------------
Debtor: Cottonwood Vending LLC
103 Avenue de Diego, Suite 1807
San Juan, PR 00911
Business Description: Cottonwood owns various vending locations in
Brooklyn and Queens.
Chapter 11 Petition Date: August 24, 2023
Court: United States Bankruptcy Court
Eastern District of New York
Case No.: 23-43027
Judge: Hon. Nancy Hershey Lord
Debtor's Counsel: Eric H. Horn, Esq.
A.Y. STRAUSS LLC
101 Eisenhower Parkway, Suite 412
Roseland, NJ 0706
Tel: 973-287-5006
Email: ehorn@aystrauss.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Aniello Zampella as sole member and
manager.
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/RE5TH3Y/Cottonwood_Vending_LLC__nyebke-23-43027__0001.0.pdf?mcid=tGE4TAMA
CPI LUXURY: Taps ArentFox Schiff as Bankruptcy Counsel
------------------------------------------------------
CPI Luxury Group received approval from the U.S. Bankruptcy Court
for the Central District of California to employ ArentFox Schiff,
LLP as bankruptcy counsel.
The Debtor requires legal counsel to:
1. Give advice to the Debtor on the requirements of the
Bankruptcy Code, the Federal Rules of Bankruptcy Procedure, the
Local Bankruptcy Rules, and the requirements of the United States
Trustee pertaining to its powers and duties in the continued
operation of its business and the administration of its estate;
2. Prepare legal papers;
3. Guide the Debtor through a sale process in the event that is
the direction in the best interest of the estate;
4. Provide legal services with respect to soliciting and
obtaining debtor-in-possession financing or exit financing;
5. Provide legal services with respect to formulating and
negotiating a plan for reorganization with creditors;
6. Appear before the bankruptcy court and other courts;
7. Protect and preserve the estate by prosecuting and defending
actions commenced by or against the Debtor and analyzing and
preparing necessary objections to proofs of claim filed against the
estate;
8. Investigate and prosecute preference, fraudulent transfer,
and other actions arising under the Debtor's avoidance powers; and
9. Render other legal services in connection with the Debtor's
Chapter 11 case and any related proceedings.
The firm will be paid at these rates:
Partners $600 to $1,115 per hour
Of Counsel $570 to $1,100 per hour
Associates $465 to $715 per hour
Paraprofessionals $150 to $405 per hour
In addition, the firm will receive reimbursement for out-of-pocket
expenses incurred.
Prior to the petition date, the firm received from the Debtor a
retainer of $242,418.37.
M. Douglas Flahaut, Esq., a partner at ArentFox, disclosed in a
court filing that his firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
M. Douglas Flahaut, Esq.
ArentFox Schiff, LLP
555 West Fifth Street, 48th Floor
Los Angeles, CA 90013
Tel: (213) 629-7400
Email: Douglas.Flahaut@afslaw.com
About CPI Luxury Group
CPI Luxury Group, a producer of cultured pearls, filed Chapter 11
petition (Bankr. C.D. Calif. Case No. 23-11059) on July 30, 2023,
with $10 million to $50 million in both assets and liabilities.
Harold Jabarian, chief executive officer, signed the petition.
Judge Victoria S. Kaufman oversees the case.
M. Douglas Flahaut, Esq., at ArentFox Schiff, LLP represents the
Debtor as legal counsel.
CREATING SCHOLARS: Donna Hall Named Subchapter V Trustee
--------------------------------------------------------
The Acting U.S. Trustee for Region 4 appointed Donna Hall of
Goodman Allen Donnelly as Subchapter V trustee for Creating
Scholars Through Therapy Corporation.
Ms. Hall will be paid an hourly fee of $375 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Hall declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Donna J. Hall, Esq.
Goodman Allen Donnelly
150 Boush Street, Suite 900
Norfolk, VA 23510-1626
Telephone: (757) 793-4422 (direct line)
Facsimile: (757) 625-7701
Email: dhall@goodmanallen.com
About Creating Scholars Through Therapy
Creating Scholars Through Therapy Corporation is a community based
behavioral health provider dedicated to reshaping individuals'
mental state through mental health services in the form of
individual, group, family, and outpatient counseling.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Va. Case No. 23-50562) on Aug. 10,
2023, with up to $500,000 in assets and up to $10 million in
liabilities. Nabila S. White, president and chief executive
officer, signed the petition.
Paul Driscoll, Esq., at Zemanian Law Group, represents the Debtor
as bankruptcy counsel.
CUENTAS INC: Incurs $1.4 Million Net Loss in Second Quarter
-----------------------------------------------------------
Cuentas, Inc. filed with the Securities and Exchange Commission its
Quarterly Report on Form 10-Q disclosing a net loss of $1.41
million on $40,000 of revenue for the three months ended June 30,
2023, compared to a net loss of $3.18 million on $670,000 of
revenue for the three months ended June 30, 2022.
For the six months ended June 30, 2023, the Company reported a net
loss of $3.11 million on $104,000 of revenue compared to a net loss
of $6.81 million on $1.06 million of revenue for the six months
ended June 30, 2022.
As of June 30, 2023, the Company had $3.73 million in total assets,
$2.26 million in total liabilities, and $1.47 million in total
stockholders' equity.
As of June 30, 2023, the Company had $271,000 in cash and cash
equivalents, $1,545,000 in negative working capital and an
accumulated deficit of $55,857,000. The Company said these
conditions raise substantial doubt about the Company's ability to
continue as a going concern.
Cuentas said, "Company's ability to continue as a going concern is
dependent upon raising capital from financing transactions and
revenue from operations. Management anticipates their business
will require substantial additional investments that have not yet
been secured."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1424657/000121390023067249/f10q0623_cuentas.htm
About Cuentas
Headquartered in Miami, Florida, Cuentas, Inc. --
http://www.cuentas.com-- currently focuses on the business of
using proprietary fintech technology to provide e-banking
ande-commerce services for delivering mobile banking, prepaid debit
and digital content services to the unbanked, underbanked and
underserved Latino, Hispanic and immigrant communities. The
Company's proprietary software platform enables Cuentas to offer
comprehensive financial services and robust functionality that is
absent from other Mobile Apps through the use of its Prepaid Debit
Mastercard/General-Purpose Reloadable cards.
Cuentas reported a net loss attributable to the company of $14.53
million in 2022, a net loss attributable to the company of $10.73
million in 2021, a net loss attributable to the company of $8.10
million in 2020, a net loss attributable to the company of $1.32
million in 2019, and a net loss of $3.56 million in 2018. As of
March 31, 2023, the Company had $5.19 million in total assets,
$2.31 million in total liabilities, and $2.88 million in total
stockholders' equity.
Tel-Aviv, Israel-based Yarel + Partners, Certified Public
Accountants (Isr.), the Company's auditor since 2023, issued a
"going concern" qualification in its report dated March 31, 2023,
citing that the Company has incurred net losses since its
inception, and has not yet generated sufficient revenues to support
its operations. As of Dec. 31, 2022, there is an accumulated
deficit of $52,750,000. These conditions, along with other
matters, raise substantial doubt about the Company's ability to
continue as a going concern.
CUENTAS INC: Receives Noncompliance Notice From Nasdaq
------------------------------------------------------
Cuentas Inc. disclosed in a Form 8-K filed with the Securities and
Exchange Commission that it received a deficiency letter from
Nasdaq Regulation stating that based upon its Quarterly Report on
Form 10-Q for the period ended June 30, 2023 which reported
shareholders' equity of $1,471,000, the Company was not in
compliance with Nasdaq Marketplace Rule 5550(b)(1) which requires
the Company to maintain shareholders' equity of not less than
$2,500,000 for continued listing on The Nasdaq Capital Market.
Under Nasdaq Rules the Company has until Oct. 2, 2023 (45 calendar
days) to submit a plan to regain compliance. If its plan is
accepted, Nasdaq can grant an extension of up to 180 calendar days
from the date of the deficiency letter to evidence compliance. In
determining whether to accept the Company's plan, Nasdaq will
consider such things as the likelihood that the plan will result in
compliance with Nasdaq's continued listing criteria, the Company's
past compliance history, the reasons for the Company's current
non-compliance, other corporate events that may occur within the
review period, the Company's overall financial condition and its
public disclosures.
After Nasdaq reviews the plan, it will contact the Company if it
has any questions or comments and will provide the Company written
notice of its decision. If Nasdaq does not accept the Company's
plan, the Company will have the opportunity to appeal that decision
to a Hearings Panel.
About Cuentas
Headquartered in Miami, Florida, Cuentas, Inc. --
http://www.cuentas.com-- currently focuses on the business of
using proprietary fintech technology to provide e-banking
ande-commerce services for delivering mobile banking, prepaid debit
and digital content services to the unbanked, underbanked and
underserved Latino, Hispanic and immigrant communities. The
Company's proprietary software platform enables Cuentas to offer
comprehensive financial services and robust functionality that is
absent from other Mobile Apps through the use of its Prepaid Debit
Mastercard/General-Purpose Reloadable cards.
Cuentas reported a net loss attributable to the company of $14.53
million in 2022, a net loss attributable to the company of $10.73
million in 2021, a net loss attributable to the company of $8.10
million in 2020, a net loss attributable to the company of $1.32
million in 2019, and a net loss of $3.56 million in 2018. As of
March 31, 2023, the Company had $5.19 million in total assets,
$2.31 million in total liabilities, and $2.88 million in total
stockholders' equity.
Tel-Aviv, Israel-based Yarel + Partners, Certified Public
Accountants (Isr.), the Company's auditor since 2023, issued a
"going concern" qualification in its report dated March 31, 2023,
citing that the Company has incurred net losses since its
inception, and has not yet generated sufficient revenues to support
its operations. As of Dec. 31, 2022, there is an accumulated
deficit of $52,750,000. These conditions, along with other
matters, raise substantial doubt about the Company's ability to
continue as a going concern.
DAWN ACQUISITIONS: S&P Upgrades ICR to 'CCC', Outlook Negative
--------------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on Dawn
Acquisitions LLC to 'CCC' from 'SD' (selective default) upon review
of Dawn's capital structure following the below-par term loan
purchase by an affiliate of Brookfield Infrastructure given that
financial leverage remains very high and the company's liquidity
position is tight.
S&P also raised the issue-level rating on Dawn's secured first-lien
debt to 'CCC+' from 'D' and revised the recovery rating on the debt
to '2' from '3' to reflect the improved recovery prospects. The '2'
recovery rating indicates its expectation for substantial (70%-90%;
rounded estimate: 80%) recovery in the event of a default.
The negative outlook reflects S&P's view that it could lower the
rating if a default becomes more likely within the next six
months.
The recent announcement of debt retirement by Dawn is credit
positive. Following the recent below-par purchase by Brookfield,
Dawn announced that it retired $85 million of its $550 million
outstanding term loan B that it held. This debt retirement caused
S&P to update its recovery rating on the debt to '2' from '3' due
to improved recovery prospects.
Dawn is still dependent on Brookfield for ongoing liquidity
support. Pro forma the debt retirement, Dawn still relies on
Brookfield for ongoing liquidity support to remain operational.
Although interest expense is reduced by about $3 million, we
estimate the company would need an additional $100 million in
liquidity support to fund its next 12 months of liquidity uses,
which include repayment of its revolver borrowings, funds from
operations outflows, modest working capital outflows, and capital
expenditure needs.
S&P's view of the business is largely unchanged, but it
acknowledges that Dawn is taking steps to improve its prospects.
The company has closed unprofitable data centers, made efforts to
modernize, and recently invested in growth areas with hyperscale
customers. Still, its elevated leverage of 14x and a weak cash flow
profile underpin the 'CCC' rating.
The negative outlook reflects Dawn's weak liquidity position and
our belief that it could undertake a restructuring or face a
payment default over the next year absent significant equity
infusions.
S&P could lower the rating if:
-- Dawn's liquidity continues to deteriorate such that a default
or restructuring appears inevitable within six months;
-- The company breaches its financial covenants and cannot cure
them; or
-- The below-par term loan purchases from Brookfield restart.
S&P could consider an upgrade if:
-- Dawn substantially improves its liquidity position; and
-- S&P believes a default is less likely during the next 12
months, which would likely involve external support from Brookfield
coupled with significant earnings growth.
DECURTIS HOLDINGS: Judge Rejects Carnival Bid to Reclassify Debt
----------------------------------------------------------------
Rick Archer of Law360 reports that a Delaware bankruptcy judge
denied Carnival Corp. standing to recharacterize loans made by
Invictus Global Management to now-bankrupt cruise line software
company DeCurtis Holdings as equity, saying the evidence showed the
loans were loans.
As previously reported, Carnival Corporation, a creditor in the
Chapter 11 cases of
Decurtis Holdings, et al., filed in Bankruptcy Court a motion for
an order granting Carnival standing to prosecute claims against
Invictus Global Management, LLC, Invictus Special Situations Master
I, L.P., Corbin Capital Partners LP, and CEOF Holdings LP.
In a proposed complaint, Carnival intends to seek an order and a
judgment against the Defendants: (i) recharacterizing the
Defendants' purported claims as equity interests; or, in the
alternative, (ii) subordinating Invictus' claims to the claims of
the Debtors' unsecured creditors; and (iii) holding that Invictus
breached their fiduciary duty.
According to Carnival's counsel, Domenic E. Pacitti of KLEHR
HARRISON HARVEY BRANZBURG LLP, this action is a result of Debtors'
and Defendants' attempt to subvert the bankruptcy system to nullify
a jury verdict and $21 million judgment rendered against Debtors in
the Southern District of Florida and to improperly gain control
over assets in Debtors' possession free and clear of the ownership
and other legal interests Carnival holds in those assets.
About Decurtis Holdings
DeCurtis Holdings LLC and affiliates provide guest experience and
operational management product-focused SaaS software solutions
designed to power any indoor, complex environment. DeCurtis is the
industry leader in transformational experience technology focused
on the cruise line industry, and DeCurtis makes software systems
used for providing guests a seamless experience with cruise ship
facilities through the use of wireless sensing technologies.
Beyond the cruise line industry, DeCurtis's products and services
are also applicable to restaurants, theme parks, and the extended
hospitality industry, with the potential to expand into healthcare
and other settings.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Lead Case No. 23-10548) on April
30, 2023. In the petition signed by Joseph J. Carino, chief
financial officer, the Debtor disclosed up to $50 million in
assets
and up to $100 million in liabilities.
Judge Kate Stickles oversees the case.
Potter Anderson and Corroon LLP and Cooley LLP represent the
Debtor
as legal counsel.
The Debtors tapped Groombrige, Wu, Baughman & Stone LLP as special
counsel, Province, LLC as financial advisor, and Omni Agent
Solutions as claims, noticing, and administrative agent.
DELUXE CORP: Egan-Jones Retains B Senior Unsecured Ratings
----------------------------------------------------------
Egan-Jones Ratings Company on August 11, 2023, maintained its 'B'
foreign currency and local currency senior unsecured ratings on
debt issued by Deluxe Corporation. EJR also withdraws rating on
commercial paper issued by the Company.
Headquartered in Minneapolis, Minnesota, Deluxe Corporation
operates as a payments and business technology company.
DENT TECH: Files Amendment to Disclosure Statement
--------------------------------------------------
Dent Tech Laboratory, Inc., submitted an Amended Disclosure
Statement describing Plan of Reorganization dated August 17, 2023.
The Plan will be financed from continuing operating income,
reorganized business operations of the Debtor, from the timely
collections of outstanding receivables, as well as from funds
accumulated in the Debtor's in Possession accounts.
Like in the prior iteration of the Plan, Class I general unsecured
creditors in the total amount of $117,093.19 shall rceive 20%
dividend in 36 monthly installments.
Class III consists of Equity interest holders. Gregory B.
Mashevich, the equity interest holder, shall retain his interest in
the Debtor following Confirmation, in consideration of a new value
contribution, being made by them as the equity holders, toward the
payment of general unsecured creditor claims. Gregory B. Mashevich
will contribute funds in installments over the life of the Plan, on
as needed basis up to the full amount of $45,000.00, representing
the principal's new value contribution. The Affidavit of
contribution is attached as Exhibit D.
A full-text copy of the Amended Disclosure Statement dated August
17, 2023 is available at https://urlcurt.com/u?l=34oyUG from
PacerMonitor.com at no charge.
Attorney for the Debtor:
Alla Kachan, Esq.
2799 Coney Island Ave., Ste. 202
Brooklyn, NY 11235
Tel: (718) 513-3145
Fax: (347) 342-315
E-mail: alla@kachanlaw.com
About Dent Tech Laboratory
Dent Tech Laboratory, Inc., operates a dental laboratories
business.
Dent Tech Laboratory sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 22-41469) on June 23,
2022, listing up to $50,000 in assets and up to $500,000 in
liabilities. Gregory B. Mashevich, president, signed the petition.
Judge Elizabeth S. Stong oversees the case.
Alla Kachan, Esq., at the Law Offices of Alla Kachan P.C. and
Wisdom Professional Services, Inc. serve as the Debtor's legal
counsel and accountant, respectively.
DEPETRIS FAMILY: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: DePetris Family LLC
1000 Fayette St
Conshohocken, PA 19428
Chapter 11 Petition Date: August 25, 2023
Court: United States Bankruptcy Court
Eastern District of Pennsylvania
Case No.: 23-12542
Judge: Hon. Magdeline D. Coleman
Debtor's Counsel: Allen B. Dubroff, Esq.
ALLEN B. DUBROFF ESQ & ASSOCIATES, LLC
1500 JFK Boulevard
Suite 1020
Philadelphia, PA 19102
Tel: 215-568-2700
Email: allen@dubrofflawllc.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by James DePetris as manager.
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/5D5A3AQ/DePetris_Family_LLC__paebke-23-12542__0001.0.pdf?mcid=tGE4TAMA
DIAMOND SPORTS: Chapter 11 Plan Sent to Mediation
-------------------------------------------------
Hilary Russ of Law360 reports that a Texas bankruptcy judge sent
Diamond Sports Group, which owns Bally Sports regional sports
networks, to mediation on Thursday, August 17, 2023, as pressure
mounts for the broadcaster to make significant progress on its
reorganization plan before the NHL and NBA begin their regular
seasons in October 2023.
About Diamond Sports Group
Diamond Sports Group, LLC and its affiliates own and/or operate the
Bally Sports Regional Sports Networks, making them the nation's
leading provider of local sports programming. DSG's 19 Bally
Sports RSNs serve as the home for 42 MLB, NHL, and NBA teams. DSG
also holds joint venture interests in Marquee, the home of the
Chicago Cubs, and the YES Network, the local destination for the
New York Yankees and Brooklyn Nets. The RSNs produce about 4,500
live local professional telecasts each year in addition to a wide
variety of locally produced sports events and programs. DSG is an
unconsolidated and independently run subsidiary of Sinclair
Broadcast Group.
Diamond Sports Group and 29 of its affiliates sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Texas Lead Case
No. 23-90116) on March 14, 2023. In the petition filed by David F.
DeVoe, Jr., as chief financial officer and chief operating officer,
Diamond Sports Group listed $1 billion to $10 billion in both
assets and liabilities.
Judge Christopher M. Lopez oversees the cases.
The Debtors tapped Paul, Weiss, Rifkind, Wharton & Garrison, LLP
and Porter Hedges, LLP as bankruptcy counsels; Wilmer Cutler
Pickering Hale, Dorr, LLP and Quinn Emanuel Urquhart & Sullivan,
LLP as special counsels; AlixPartners, LLP as financial advisor;
Moelis & Company, LLC and LionTree Advisors, LLC as investment
bankers; Deloitte Tax, LLP as tax advisor; Deloitte Financial
Advisory Services, LLP as accountant; and Deloitte Consulting, LLP
as consultant. Kroll Restructuring Administration, LLC is the
claims agent.
The U.S. Trustee for Region 7 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
The committee tapped Akin Gump Strauss Hauer& Feld LLP as counsel;
FTI Consulting, Inc., as financial advisor; and Houlihan Lokey
Capital, Inc., as investment banker.
DIAMOND SPORTS: Committee Taps Reid Collins as Special Counsel
--------------------------------------------------------------
The official committee of unsecured creditors of The Diamond Sports
Group, LLC and its affiliates seeks approval from the U.S.
Bankruptcy Court for the Southern District of Texas to employ Reid
Collins & Tsai, LLP as special counsel.
The committee requires the services of a special counsel in
connection with the potential claims against J.P. Morgan & Co. and
its affiliated entities, and the adversary proceedings by JP Morgan
Chase Funding Inc., Adv. Pro. No. 23-03135 (CML) (Bankr. S.D.
Tex.).
The firm will be paid at these rates:
Partners $1,150 to $1,975 per hour
Counsels $925 per hour
Associates $825 to $925 per hour
Paraprofessionals $375 per hour
Angela Somers, Esq., a partner at Reid Collins & Tsai, disclosed in
a court filing that her firm is a "disinterested person" pursuant
to Section 101(14) of the Bankruptcy Code.
In accordance with Appendix B-Guidelines for reviewing fee
applications filed by attorneys in larger Chapter 11 cases, Reid
Collins & Tsai disclosed the following:
(a) The firm did not agree to any variations from, or
alternatives to, its standard or customary billing arrangements for
this engagement. The rates set forth herein are consistent with (i)
market rates for comparable services and (ii) the rates that the
firm charges and will charge other comparable Chapter 11 clients
who engage the firm on an hourly basis, regardless of the location
of the Chapter 11 case.
(b) No rate for any of the professionals included in this
engagement varies based on the geographic location of the
bankruptcy case.
(c) The firm did not represent the committee in these Chapter 11
cases prior to its retention by the committee.
(d) Since the firm's role is limited to special counsel in a
single adversary proceeding, the firm will periodically update the
committee on costs to reasonably comply with the U.S. Trustee's
request for information and additional disclosures, as to which the
firm reserves all rights.
(e) The committee approved the firm's proposed current hourly
billing rates.
The firm can be reached at:
Angela J. Somers, Esq.
Reid Collins & Tsai, LLP
330 West 58th Street, Suite 403
New York, NY 10019
Tel: (212) 344-5200
Email: asomers@reidcollins.com
About The Diamond Sports Group
Diamond Sports Group, LLC and its affiliates own and/or operate the
Bally Sports Regional Sports Networks, making them the nation's
leading provider of local sports programming. DSG's 19 Bally
Sports RSNs serve as the home for 42 MLB, NHL, and NBA teams. DSG
also holds joint venture interests in Marquee, the home of the
Chicago Cubs, and the YES Network, the local destination for the
New York Yankees and Brooklyn Nets. The RSNs produce about 4,500
live local professional telecasts each year in addition to a wide
variety of locally produced sports events and programs. DSG is an
unconsolidated and independently run subsidiary of Sinclair
Broadcast Group.
Diamond Sports Group and 29 of its affiliates sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Texas Lead Case
No. 23-90116) on March 14, 2023. In the petition filed by David F.
DeVoe, Jr., as chief financial officer and chief operating officer,
Diamond Sports Group listed $1 billion to $10 billion in both
assets and liabilities.
Judge Christopher M. Lopez oversees the cases.
The Debtors tapped Paul, Weiss, Rifkind, Wharton & Garrison, LLP
and Porter Hedges, LLP as bankruptcy counsels; Wilmer Cutler
Pickering Hale, Dorr, LLP and Quinn Emanuel Urquhart & Sullivan,
LLP as special counsels; AlixPartners, LLP as financial advisor;
Moelis & Company, LLC and LionTree Advisors, LLC as investment
bankers; Deloitte Tax, LLP as tax advisor; Deloitte Financial
Advisory Services, LLP as accountant; and Deloitte Consulting, LLP
as consultant. Kroll Restructuring Administration, LLC is the
claims agent.
The U.S. Trustee for Region 7 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases. The
committee tapped Akin Gump Strauss Hauer & Feld, LLP as bankruptcy
counsel; Reid Collins & Tsai, LLP as special counsel; FTI
Consulting, Inc. as financial advisor; and Houlihan Lokey Capital,
Inc. as investment banker.
DIAMOND SPORTS: Sinclair Accused of Draining $1.5 Billion
---------------------------------------------------------
Jonathan Randles of Bloomberg Law reports that Sinclair Broadcast
Group Inc. is accused of wrongly siphoning more than $1.5 billion
from a subsidiary operating a network of local sports channels that
filed bankruptcy earlier this 2023, according to a lawsuit made
public Wednesday.
The subsidiary, Diamond Sports Group, claims in a lawsuit against
Sinclair that its parent company extracted substantial sums from
the broadcaster after acquiring the business from The Walt Disney
Company in 2019 in a deal valued at $10.6 billion. Sinclair
continued siphoning assets as Diamond's business deteriorated while
losing customers and major distribution partners including DISH
Network LLC, according to the lawsuit.
About Diamond Sports Group
Diamond Sports Group, LLC and its affiliates own and/or operate the
Bally Sports Regional Sports Networks, making them the nation's
leading provider of local sports programming. DSG's 19 Bally
Sports RSNs serve as the home for 42 MLB, NHL, and NBA teams. DSG
also holds joint venture interests in Marquee, the home of the
Chicago Cubs, and the YES Network, the local destination for the
New York Yankees and Brooklyn Nets. The RSNs produce about 4,500
live local professional telecasts each year in addition to a wide
variety of locally produced sports events and programs. DSG is an
unconsolidated and independently run subsidiary of Sinclair
Broadcast Group.
Diamond Sports Group and 29 of its affiliates sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Texas Lead Case
No. 23-90116) on March 14, 2023. In the petition filed by David F.
DeVoe, Jr., as chief financial officer and chief operating officer,
Diamond Sports Group listed $1 billion to $10 billion in both
assets and liabilities.
Judge Christopher M. Lopez oversees the cases.
The Debtors tapped Paul, Weiss, Rifkind, Wharton & Garrison, LLP
and Porter Hedges, LLP as bankruptcy counsels; Wilmer Cutler
Pickering Hale, Dorr, LLP and Quinn Emanuel Urquhart & Sullivan,
LLP as special counsels; AlixPartners, LLP as financial advisor;
Moelis & Company, LLC and LionTree Advisors, LLC as investment
bankers; Deloitte Tax, LLP as tax advisor; Deloitte Financial
Advisory Services, LLP as accountant; and Deloitte Consulting, LLP
as consultant. Kroll Restructuring Administration, LLC is the
claims agent.
The U.S. Trustee for Region 7 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
The committee tapped Akin Gump Strauss Hauer& Feld LLP as counsel;
FTI Consulting, Inc., as financial advisor; and Houlihan Lokey
Capital, Inc., as investment banker.
DIGITALXMEDIA LLC: Taps Welch Financial Advisors as Accountant
--------------------------------------------------------------
DigitalXmedia, LLC seeks approval from the U.S. Bankruptcy Court
for the Northern District of Georgia to hire Welch Financial
Advisors, LLC as its accountant.
The firm's services include:
a. assisting the Debtor in preparing and filing its tax
returns;
b. analyzing financial data and preparing financial reports as
necessary to comply with orders of the Court and requests from the
U.S. Trustee and other parties-in-interest;
c. auditing all monthly operating reports filed by the Debtor
to date in this case and assisting the Debtor in the amendment of
the reports, if any, to ensure accuracy of the Debtor’s financial
condition; and
d. other essential accounting duties necessary to ensure the
accuracy of information presented to the Court and parties in
interest in this Case.
Welch charges a monthly flat fee of $950 for its bookkeeping
services. The fee for the filing of tax returns is $1,000. For any
services beyond its regular bookkeeping and tax return services,
Welch charges an average hourly rate of $225.
As disclosed in court filings, Welch is a "disinterested person"
pursuant to Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Cecily Welch, CPA
Welch Financial Advisors
201 Joseph E. Lowery Blvd, NW
Atlanta, GA 30314
Tel: (404) 591-6777
Email: cecily.welch@cecilywelchcpa.com
About DigitalXmedia LLC
DigitalXmedia, LLC sought protection for relief under Chapter 11 of
the Bankruptcy Code (Bankr. N.D. Ga. Case No. 23-53526) on April
13, 2023. At the time of filing, the Debtor estimated up to $50,000
in assets and $100,001 to $500,000 in liabilities.
Judge Paul Baisier oversees the case.
Will B. Geer, Esq., at Rountree Leitman Klein & Geer LLC represents
the Debtor as counsel.
DOUBLE VISION: Case Summary & Three Unsecured Creditors
-------------------------------------------------------
Debtor: Double Vision Holdings, LLC
55800 New Haven Road
Chesterfield, MI 48051-3768
Business Description: Double Vision is a Single Asset Real Estate
debtor (as defined in 11 U.S.C. Section
101(51B)).
Chapter 11 Petition Date: August 24, 2023
Court: United States Bankruptcy Court
Eastern District of Michigan
Case No.: 23-47429
Judge: Hon. Thomas J. Tucker
Debtor's Counsel: Elliot G. Crowder, Esq.
STEVENSON & BULLOCK, P.L.C.
26100 American Drive
Suite 500
Southfield, MI 48034
Tel: (248) 354-7906 Ext 2254
Email: ecrowder@sbplclaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Michael Monicatti as member.
A copy of the Debtor's list of three unsecured creditors is
available for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/RWTJFKA/Double_Vision_Holdings_LLC__miebke-23-47429__0003.0.pdf?mcid=tGE4TAMA
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/ITRAV7A/Double_Vision_Holdings_LLC__miebke-23-47429__0001.0.pdf?mcid=tGE4TAMA
EAGLE TRUCKLINES: Case Summary & Largest Unsecured Creditors
------------------------------------------------------------
Three affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------
Eagle Trucklines, Inc. 23-42504
180 State Street
Southlake, TX 76092-7632
Eagle Trans, Inc. 23-42505
4435 E Chandler Blvd
Phoenix, AZ 85048
Eagle Fast Ways, Inc. 23-42506
525 Woodland Square Blvd
Conroe, TX 77384-2212
Business Description: The Debtors are part of the general freight
trucking industry.
Chapter 11 Petition Date: August 25, 2023
Court: United States Bankruptcy Court
Northern District of Texas
Debtors' Counsel: Robert T DeMarco, Esq.
DEMARCO MITCHELL, PLLC
1255 West 15th St., 805
Plano TX 75075
Tel: (972) 578-1400
Email: robert@demarcomitchell.com
Each Debtor's
Estimated Assets: $1 million to $10 million
Each Debtor's
Estimated Liabilities: $1 million to $10 million
The petitions were signed by Gurinder Chouhan as president.
Full-text copies of the petitions containing, among other items,
lists of the Debtors' largest unsecured creditors are available for
free at PacerMonitor.com at:
https://www.pacermonitor.com/view/Y6GNZLI/Eagle_Trucklines_Inc__txnbke-23-42504__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/YZDC25Y/Eagle_Trans_Inc__txnbke-23-42505__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/SPENONQ/Eagle_Fast_Ways_Inc__txnbke-23-42506__0001.0.pdf?mcid=tGE4TAMA
EBIX INC: Egan-Jones Retains BB- Senior Unsecured Ratings
---------------------------------------------------------
Egan-Jones Ratings Company on August 3, 2023, maintained its 'BB-'
foreign currency and local currency senior unsecured ratings on
debt issued by Ebix, Inc. EJR also withdraws rating on commercial
paper issued by the Company.
Headquartered in Atlanta, Georgia, Ebix, Inc. supplies software and
electronic commerce solutions to the insurance industry.
ELITE KIDS: Unsecureds Will Get 3% of Claims in 24 Months
---------------------------------------------------------
Elite Kids Services, Inc., filed with the U.S. Bankruptcy Court for
the Eastern District of New York a Disclosure Statement describing
Plan of Reorganization dated August 21, 2023.
The Debtor is a childcare provider, which suffered severely during
the Covid-19 pandemic. In order to reorganize its debts and allow
for feasible debt repayment terms, the Debtor sought Chapter 11
bankruptcy protection.
Upon the confirmation of the Plan, the Debtor shall continue to
operate as a dental laboratory, and pay the claims from continued
operating income.
The Plan will be financed from continuing operating income,
reorganized business operations of the Debtor, as well as from
funds accumulated in the Debtor's in Possession accounts.
Class II consists of general unsecured claims totaling
$1,006,086.00:
* Consolidated Edison Company of New York Inc. in the amount
of $6,069.07 shall receive 3% ($182.07) dividend to be payable by
equal monthly installments in the amount of $7.7 within 24 months
commencing on the effective date.
* M.M. Infant under age 14 and Olia Royzman in the amount of
$1,000,000.00 shall receive 3% ($30,000.00) dividend to be payable
by equal monthly installments in the amount of $1,250.00 within 24
months commencing on the effective date.
* New York State Department of Taxation & Finance in the
amount of $17.04 shall receive 3% ($0.5) dividend to be payable on
the effective date.
Class III consists of Equity interest holders. Oleg Kiselyov, the
equity interest holder, shall retain his interest in the Debtor
following Confirmation, in consideration of a new value
contribution, being made by them as the equity holders, toward the
payment of general unsecured creditor claims. Oleg Kiselyov will
contribute funds in installments over the life of the plan, on as
needed basis, representing the principal's new value contribution.
The Plan will be financed from continuing operating income,
reorganized business operations of the Debtor, as well as from
funds accumulated in the Debtor in Possession accounts.
A full-text copy of the Disclosure Statement dated August 21, 2023
is available at https://urlcurt.com/u?l=ImilGp from
PacerMonitor.com at no charge.
Attorney for Debtor:
Alla Kachan, Esq.
Law Offices of Alla Kachan, PC
2799 Coney Island Avenue, Suite 202
Brooklyn, NY 11235
Telephone: (718) 513-3145
Email: alla@kachanlaw.com
About Elite Kids Services
Elite Kids Services, Inc. is a childcare provider.
The Debtor filed a Chapter 11 bankruptcy petition (Bankr. E.D.N.Y.
Case No. 22-42915) on Nov. 22, 2022, with as much as $1 million in
both assets and liabilities. Judge Elizabeth S. Stong oversees the
case.
Alla Kachan, Esq., at the Law Offices of Alla Kachan, PC, and
Wisdom Professional Services, Inc., serve as the Debtor's legal
counsel and accountant, respectively.
ENDO INT'L: Buyers Offer Schools $3M to Drop Opposition to Sale
---------------------------------------------------------------
James Nani of Bloomberg Law reports that public school districts
suing bankrupt Endo International Plc would gain access to a $3
million opioid abatement fund in exchange for dropping their
opposition to the pharmaceutical maker's proposed $6 billion asset
sale to lenders.
Endo's proposed buyers agreed to make the payments over three years
to a public school education fund, according to court papers filed
Tuesday, August 15, 2023, in the US Bankruptcy Court District of
Southern District of New York.
The fund would provide grants and other funding for more than 100
participating school districts to combat opioid abuse and
remediation programs, the filing said.
About Endo International
Endo International plc is a generics and branded pharmaceutical
company. It develops, manufactures, and sells branded and generic
products to customers in a wide range of medical fields, including
endocrinology, orthopedics, urology, oncology, neurology, and other
specialty areas. On the Web: http://www.endo.com/
On Aug. 16, 2022, Endo International and certain of its
subsidiaries initiated voluntary prearranged Chapter 11 proceedings
(Bankr. S.D.N.Y. Lead Case No. 22-22549). The cases are pending
before Judge James L. Garrity, Jr.
The Debtors tapped Skadden, Arps, Slate, Meagher & Flom, LLP as
legal counsel; PJT Partners, LP as investment banker; and Alvarez &
Marsal North America, LLC as financial advisor. Kroll
Restructuring Administration, LLC is the claims agent and
administrative advisor. A Web site dedicated to the restructuring
is at http://www.endotomorrow.com/
Roger Frankel, the legal representative for future claimants in the
Chapter 11 cases, tapped Frankel Wyron LLP and Young Conaway
Stargatt & Taylor, LLP as legal counsels, and Ducera Partners, LLC
as investment banker.
The U.S. Trustee for Region 2 appointed an official committee of
unsecured creditors on Sept. 2, 2022. The committee tapped Kramer
Levin Naftalis & Frankel as legal counsel; Lazard Freres & Co. LLC
as investment banker; and Dundon Advisers, LLC and Berkeley
Research Group, LLC as financial advisors.
Meanwhile, the official committee representing the Debtors' opioid
claimants tapped Cooley, LLP as bankruptcy counsel; Akin Gump
Strauss Hauer & Feld, LLP as special counsel; Province, LLC as
financial advisor; and Jefferies, LLC, as investment banker.
David M. Klauder, Esq., the court-appointed fee examiner, is
represented by Bielli & Klauder, LLC.
ENERGY PLUS: Taps Cobb Doerfler & Associates as Accountant
----------------------------------------------------------
Energy Plus Solar, Inc. seeks approval from the U.S. Bankruptcy
Court for the Central District of California to employ Cobb,
Doerfler & Associates, CPA.
The Debtor requires an accountant to assist in the preparation of
the 2021 and 2022 Federal and California income tax returns, and
statement of assets, liability and equity.
Cobb, Doerfler & Associates will charge a flat fee of $500 for the
2021 Federal and California corporation income tax returns, a flat
fee of $500 for 2022 Federal and California corporation income tax
returns, a flat fee of $250 for June 2023 statement of assets,
liabilities and equity – tax basis and statement of revenue,
expense and retained earnings.
Timothy Doerfler, a partner at Cobb, Doerfler & Associates,
disclosed in a court filing that his firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Timothy W. Doerfler
Cobb, Doerfler & Associates, CPA
1039 West Avenue J.
Lancaster, CA 93539-2770
Tel: (661) 948-2662
Fax: (661) 942-6103
About Energy Plus Solar
Energy Plus Solar, Inc. has been in the business of providing solar
panel installation for residential and commercial clients since May
2007.
Energy Plus Solar filed a petition under Chapter 11, Subchapter V
of the Bankruptcy Code (Bankr. C.D. Calif. Case No. 23-12863) on
May 9, 2023, with as much as $50,000 in assets and $100,001 to
$500,000 in liabilities. John-Patrick Fritz has been appointed as
Subchapter V trustee.
Judge Neil W. Bason oversees the case.
The Debtor tapped the Law Offices of Michael Jay Berger as
bankruptcy counsel and Cobb, Doerfler & Associates, CPA as
accountant.
FIRST TO THE FINISH: Wins Cash Collateral Access Thru Sept 14
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Illinois
authorized Michael E. Collins, the Chapter 11 Trustee for First to
the Finish Kim and Mike Viano Sports Inc., to use cash collateral
in accordance with the budget, with a 10% variance, until September
14, 2023.
CNB Bank & Trust, N.A., Nike USA, Inc., and the Bank of Springfield
have asserted a perfected security interest in the Debtor's
bankruptcy estate.
As adequate protection, the Secured Lenders are granted access to
examine the books and records of the Debtor and take an inventory
of assets of the Estate. The parties will use their best efforts to
coordinate on mutually available dates and times to avoid
duplication and disruptions on the operations.
As further adequate protection, and only to the extent of (a) the
diminution of value of a Secured Lender's interest in the
Prepetition Collateral occurring from the Petition Date to the
Termination Date, and (b) the prepetition validity and priority of
each the Secured Lender's respective security interests in the
Prepetition Collateral, the Secured Lenders are granted valid and
perfected, security interests in, and liens including, but not
limited to, replacement liens on all of the right, title, and
interest of the Estate.
The Adequate Protection Liens and the 507(b) Claims are valid,
perfected, enforceable, and effective as of the Petition Date
without the need for any further action by the Trustee, the Secured
Lenders, or the necessity of execution or filing of any instruments
or agreements.
The Trustee is authorized to use cash collateral in accordance with
this Order until the earlier of the following:
(i) September 14, 2023;
(ii) the entry of an Order, on a "final" basis approving the
Trustee's use of cash collateral; (iii) the date of the dismissal
of the Debtor's bankruptcy case or the conversion of the Debtor's
bankruptcy case to a case under Chapter 7 of the Code,
(iv) the date a sale of substantially all of the Estate's
assets is consummated after being approved by the Court,
(v) the effective date of any confirmed chapter 11 plan.
A final hearing on the matter is set for September 14, 2023 at 10
a.m.
A copy of the Court's order and the Debtor's budget is available
for free at https://urlcurt.com/u?l=zQ6Vba from PacerMonitor.com.
The Debtor projects $200,000 in cash receipts and $197,950 in total
cash disbursements in August 2023.
About First to the Finish Kim
and Mike Viano Sports Inc.
First to the Finish Kim and Mike Viano Sports Inc. sells sporting
goods, hobbies, and musical instruments.
First to the Finish Kim and Mike Viano Sports filed its voluntary
petition for relief under Chapter 11 of the Bankruptcy Code (Bankr.
S.D. Ill. Case No. 20-30955) on October 7, 2020. The petition was
signed by Mike Viano, president. At the time of filing, the Debtor
estimated $1 million to $10 million in both assets and
liabilities.
Judge Laura K. Grandy oversees the case.
The Debtor is represented by Carmody MacDonald P.C.
The Chapter 11 Trustee, Michael E. Collins, is represented by
Manier & Herod, P.C.
CNB Bank & Trust, N.A., as secured lender, is represented by Silver
Lake Group, Ltd. Nike USA, Inc., also a secured lender, is
represented by A.M. Saccullo Legal.
FLUOR CORP: Egan-Jones Retains B Senior Unsecured Ratings
---------------------------------------------------------
Egan-Jones Ratings Company on August 8, 2023, maintained its 'B'
foreign currency and local currency senior unsecured ratings on
debt issued by Fluor Corporation. EJR also withdraws rating on
commercial paper issued by the Company.
Headquartered in Irving, Texas, Fluor Corporation provides oil and
gas infrastructure construction services.
FOR PAWS BLUE: Court OKs Cash Collateral Access on Final Basis
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Ohio,
Eastern Division, Canton, authorized For Paws Blue Cross Animal
Hospital, LLC to use cash collateral on a final basis.
Prior to the commencement of the Debtor's Chapter 11 case:
-- BHG Financial, serviced by Perpetual Federal Savings Bank;
-- the U.S. Small Business Association;
-- BHG Financial, serviced by The Ohio Valley Bank Company;
-- Kapitus LLC;
-- IDEA 247, Inc.;
-- Forward Financing, LLC; and
-- White Road Capital, LLC, d/b/a GFE Holdings
made loans and advances to the Debtor, pursuant to the terms of
several loan agreement and promissory notes.
As adequate protection, the Lenders are granted valid, binding,
enforceable and perfected postpetition replacement liens in the
same order of priority as the Lenders' prepetition security
interests in all of the Debtor's assets. The Adequate Protection
Liens will secure an amount of the Prepetition Indebtedness equal
to the aggregate amount of cash collateral expended during the
Interim Period.
A copy of the order is available at https://urlcurt.com/u?l=1zpFBt
from PacerMonitor.com.
About For Paws Blue Cross Animal Hospital, LLC
For Paws Blue Cross Animal Hospital, LLC operates an animal
hospital. The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ohio Case No. 23-60829) on July 14,
2023. In the petition signed by Jennifer D. Jellison, managing
member, the Debtor disclosed up to $1 million in assets and up to
$10 million in liabilities.
Judge Tiiara N.A. Patton oversees the case.
Anthony J. DeGirolamo, Esq., represents the Debtor as legal
counsel.
FOSSIL GROUP: Egan-Jones Retains BB- Senior Unsecured Ratings
-------------------------------------------------------------
Egan-Jones Ratings Company on August 3, 2023, maintained its 'CCC+'
foreign currency and local currency senior unsecured ratings on
debt issued by Fossil Group Inc. EJR also withdraws rating on
commercial paper issued by the Company.
Headquartered in Richardson, Texas, Fossil Group Europe GmbH
provides apparel products.
FREEDOM HOLDING: S&P Places 'B-' LT ICR on CreditWatch Negative
---------------------------------------------------------------
S&P Global Ratings placed on CreditWatch with negative implications
the following ratings:
-- The 'B-' long-term rating on Freedom Holding Corp.;
-- The 'B/B' long- and short-term issuer credit ratings on Freedom
Finance JSC, Freedom Finance Europe Ltd., Freedom Finance Global
PLC, and Bank Freedom Finance Kazakhstan; and
-- The 'kzBB+' Kazakh national scale ratings on Freedom Finance
JSC and Bank Freedom Finance Kazakhstan.
U.S.-domiciled Freedom Holding Corp. disclosed in its annual report
that in 2022 it provided services to certain individuals and
entities sanctioned by the Office of Foreign Assets Control (OFAC),
the EU, and the U.K.
S&P said, "We already incorporate into our analysis our view of
Freedom's weak compliance and reporting mechanisms. Our 'b' group
credit profile on Freedom balances the group's strengths as a
growing, increasingly diversified and profitable financial services
entity with the high risks inherent to the markets it serves and
its organizational arrangements. We have long considered Freedom as
an organizationally complex group with a high risk appetite,
demonstrated through its track record of, and planned rapid growth
both organically and through acquisitions. At the same time, we
believe that, amid this rapid franchise expansion across business
lines and geographies, the group has not demonstrated adequate
consolidated supervision and a risk management framework over its
group operating companies. In the year ended March 31, 2023, the
group's balance sheet expanded 71%, boosted by 2.4x growth in its
proprietary securities portfolio of mainly bonds issued by the
Kazakh government and government-related entities, financed through
repos and customer funds. Rapid growth also constrains capital
adequacy at the group level.
"The group's reliance on revenue from a Belize affiliate remains
credit negative, in our view, despite having eased somewhat over
the past few quarters. Freedom historically onboarded most of its
broker clients via Belize-based affiliate Freedom Securities
Trading Inc., which is owned separately from the group by majority
owner Mr. Timur Turlov, who then traded via Freedom group entities.
The Belize operations represented over two-thirds of the group's
broker commissions. In our opinion, this is a complex arrangement
with inherent risks. We note, however, that Freedom has emphasized
that in 2022-2023 new clients have been largely onboarded in
jurisdictions in Europe and across the globe, which we regard as
credit supportive, while Belize clients have been gradually
transferred to Freedom Global (Astana International Financial
Center). This caused Belize's share of fees and commissions in the
total group's commissions (including brokerage, banking, and
investment banking) to decline to an average 60% for the year ended
March 31, 2023, during which the fees reduced steadily from 85% in
the first quarter to 24% in the fourth quarter. We expect this
trend will continue over the next 12 months."
Recent revelations about deficiencies in Freedom's risk management
and corporate governance could imply risks beyond what is factored
in at the current rating level. It has become evident that Freedom
entities in Kazakhstan have been subject to multiple regulatory
penalties, sanctions, and fines, and there is an ongoing SEC
investigation.
Freedom's dealings with sanctioned individuals and entities may
have increased legal and compliance risks. Freedom stated in their
recently released annual report that the group had served
individuals and entities subject to U.S., U.K., and European
sanctions, and related customer liabilities were $17.8 million at
end-March 2023. The group also stated that these transactions did
not involve any nexus with the U.S., the EU, or the U.K.
Negative disclosures in the group report and recently published
allegations by a third party could lead to a loss of critical
counterparties and potentially weaken Freedom's franchise. Market
participants in certain regions, including execution brokers,
clearing houses, and stock exchanges, could sever their business
relationships with Freedom group in light of recent disclosures in
the annual report and allegations in the short-seller report. To
our knowledge, Freedom's customer base mainly comprises citizens of
Kazakhstan, Ukraine, unsanctioned Russians and their diaspora, and
a rising number of EU citizens. Customer funding on bank deposits
and brokerage accounts represented 45% of Freedom's funding as of
end-March. Although the overall customer reaction appears muted so
far, material outflows or regulatory actions may result in adverse
implications for the group's business and financial profiles.
S&P does not rate any debt issued by the rated entities.
The CreditWatch placement reflects the risk that, within the next
90 days, we could downgrade the rated Freedom entities if we
perceive a material increase in legal and compliance risks or if
negative market sentiment is detrimental to the group's franchise,
specifically if:
-- S&P revised its view of the quality of Freedom's risk and
governance arrangements; or
-- S&P sees a high probability that regulators impose material
sanctions or fines on the group and its entities that could lead to
material deterioration of their financial profiles; or
-- Negative market sentiment gives way to a loss of critical
counterparties, impairing the group's ability to operate; or
-- S&P perceives a material weakening of funding and liquidity and
capitalization metrics.
S&P could affirm the ratings and remove them from CreditWatch if it
sees limited pressure stemming from the aforementioned factors.
GAUCHO GROUP: Incurs $5 Million Net Loss in Second Quarter
----------------------------------------------------------
Gaucho Group Holdings, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $4.98 million on $710,975 of sales for the three months ended
June 30, 2023, compared to a net loss of $5.29 million on $405,335
of sales for the three months ended June 30, 2022.
For the six months ended June 30, 2023, the Company reported a net
loss of $7.68 million on $1.16 million of sales compared to a net
loss of $7.56 million on $830,932 of sales for the same period
during the prior year.
As of June 30, 2023, the Company had $19.22 million in total
assets, $10.85 million in total liabilities, and $8.36 million in
total stockholders' equity.
Gaucho Group said, "The Company's operating needs include the
planned costs to operate its business, including amounts required
to fund working capital and capital expenditures. Based upon
projected revenues and expenses, the Company believes that it may
not have sufficient funds to operate for the next twelve months
from the date these financial statements are made available. Since
inception, the Company's operations have primarily been funded
through proceeds received from equity and debt financings. The
Company believes it has access to capital resources and continues
to evaluate additional financing opportunities. There is no
assurance that the Company will be able to obtain funds on
commercially acceptable terms, if at all. There is also no
assurance that the amount of funds the Company might raise will
enable the Company to complete its development initiatives or
attain profitable operations. The aforementioned factors raise
substantial doubt about the Company's ability to continue as a
going concern for a period of one year from the issuance of these
financial statements."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1559998/000149315223028614/form10-q.htm
About Gaucho Group
Headquartered in New York, NY, Gaucho Group Holdings, Inc. --
http://www.algodongroup.com-- was incorporated on April 5, 1999.
Effective Oct. 1, 2018, the Company changed its name from Algodon
Wines & Luxury Development, Inc. to Algodon Group, Inc., and
effective March 11, 2019, the Company changed its name from Algodon
Group, Inc. to Gaucho Group Holdings, Inc. Through its wholly
owned subsidiaries, GGH invests in, develops and operates real
estate projects in Argentina. GGH operates a hotel, golf and
tennis resort, vineyard and producing winery in addition to
developing residential lots located near the resort. In 2016, GGH
formed a new subsidiary and in 2018, established an e-commerce
platform for the manufacture and sale of high-end fashion and
accessories. The activities in Argentina are conducted through its
operating entities: InvestProperty Group, LLC, Algodon Global
Properties, LLC, The Algodon - Recoleta S.R.L, Algodon Properties
II S.R.L., and Algodon Wine Estates S.R.L. Algodon distributes its
wines in Europe through its United Kingdom entity, Algodon Europe,
LTD.
Gaucho Group reported a net loss of $21.83 million for the year
ended Dec. 31, 2022, compared to a net loss of $2.39 million for
the year ended Dec. 31, 2021. As of March 31, 2023, the Company had
$21.01 million in total assets, $8.60 million in total liabilities,
and $12.40 million in total stockholders' equity.
New York, NY-based Marcum LLP, the Company's auditor since 2013,
issued a "going concern" qualification in its report dated April
17, 2023, citing that the Company has a significant working capital
deficiency, has incurred significant losses and needs to raise
additional funds to meet its obligations and sustain its
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
GIRARDI & KEESE: Tom Ordered by Court to Attend Competency Hearing
------------------------------------------------------------------
Brandon Lowrey of Law360 reports that Girardi is ordered to attend
competency hearing in fraud case.
Former celebrity attorney Tom Girardi must appear in court next
week for a hearing to determine whether he is mentally competent to
stand trial on charges he stole tens of millions of dollars from
his firm's clients, a Los Angeles federal judge ruled Thursday,
August 17, 2023.
About Girardi & Keese
Girardi and Keese or Girardi & Keese was a Los Angeles-based law
firm founded in 1965 by lawyers Thomas Girardi and Robert Keese.
It served clients in California in a variety of legal areas. It
was
known for representing plaintiffs against major corporations.
An involuntary Chapter 7 petition (Bankr. C.D. Cal. Case No.
20-21022) was filed in December 2020 against GIRARDI KEESE by
alleged creditors Jill O'Callahan, Robert M. Keese, John Abassian,
Erika Saldana, Virginia Antonio, and Kimberly Archie.
The petitioners' attorneys:
Andrew Goodman
Goodman Law Offices, Apc
Tel: 818-802-5044
E-mail: agoodman@andyglaw.com
Elissa D. Miller, a member of the firm SulmeyerKupetz, has been
appointed as Chapter 7 trustee for GIRARDI KEESE. The Chapter 7
trustee can be reached at:
Elissa D. Miller
333 South Grand Ave., Suite 3400
Los Angeles, California 90071-1406
Telephone: (213) 626-2311
Facsimile: (213) 629-4520
E-mail: emiller@sulmeyerlaw.com
An involuntary Chapter 7 petition was also filed against Thomas
Vincent Girardi (Case No. 20-21020) on Dec. 18, 2020. The Chapter
7 trustee can be reached at:
Jason M. Rund
Email: trustee@srlawyers.com
840 Apollo Street, Suite 351
El Segundo, CA 90245
GLATFERER CORP: Egan-Jones Hikes Senior Unsecured Ratings to B+
---------------------------------------------------------------
Egan-Jones Ratings Company on August 3, 2023, upgraded the foreign
currency and local currency senior unsecured ratings on debt issued
by Glatfelter Corporation to B+ from BB-. EJR also withdraws rating
on commercial paper issued by the Company.
Headquartered in Charlotte, North Carolina, Glatfelter Corporation
manufactures and supplies papers and engineered materials.
GLENDALE INVESTMENT: Unsecureds to Split $36K over 36 Months
------------------------------------------------------------
Glendale Investment Alliance, LLC, filed with the U.S. Bankruptcy
Court for the Central District of California a Plan of
Reorganization for Small Business dated August 17, 2023.
The Debtor is operating its restaurant under the name "Thai
Original BBQ" since 2014.
The Debtor allegedly has a total of approximately $51,300 in
secured claims, $69,026.50 in priority claims, and $1,720,854.91 in
general unsecure claims (aside from a contingent claim of
$2,600,183.80 it guaranteed but for which a different party pays
and for which such party provided collateral), all subject to
review during the claim objection process.
The Plan Proponent's financial projections show that the Debtor
will have Projected Disposable Income from its operations for the
period of three years of approximately $178,714.80. The final Plan
payment is expected to be paid three years from the effective
date.
This Plan of Reorganization proposes to pay creditors of the Debtor
from cashflow from operations.
Non-priority unsecured creditors holding allowed claims will
receive distributions, which the proponent of this Plan has valued
at approximately $36,000. This Plan also provides for the payment
of administrative and priority claims.
Class 3 consists of Non-priority unsecured creditors. An aggregate
$36,000 to all claimholders over 36 months due and payable every 3
months, who shall receive a proportionate share. This Class is
impaired.
Class 4 Convenience Class of Non-priority unsecured creditors shall
be paid in full on effective date.
All of the Debtor's equity interests shall vest in the Debtor's
members as of the Petition Date in the same percentage they held as
of that time.
The Plan will be funded by the Debtor's disposable income from
business earnings.
A full-text copy of the Plan of Reorganization dated August 17,
2023 is available at https://urlcurt.com/u?l=KtsK1H from
PacerMonitor.com at no charge.
Attorney for the Plan Proponent:
Giovanni Orantes, Esq.
The Orantes Law Firm, PC
3435 Wilshire Blvd., Suite 2920
Los Angeles, CA 90010
Telephone: (213) 389-4362
Facsimile: (877) 789-5776
Email: go@gobklaw.com
About Glendale Investment
Glendale Investment Alliance, LLC, is operating its restaurant
under the name "Thai Original BBQ" since 2014.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. C.D. Calif. Case No. 23-13125) on May 19,
2023, with $100,001 to $500,000 in both assets and liabilities. M.
Douglas Flahau, Esq., a partner at ArentFox Schiff, has been
appointed as Subchapter V trustee.
Judge Julia W. Brand oversees the case.
The Debtor is represented by Giovanni Orantes, Esq., at The Orantes
Law Firm, A.P.C.
GLOBAL AVIATION: Seeks to Extend Plan Exclusivity to September 11
-----------------------------------------------------------------
Global Aviation Technologies LLC asks the U.S. Bankruptcy Court
for the District of Kansas to extend its exclusive periods to
September 11, 2023 to file a plan and until November 13, 2023,
to obtain confirmation of that plan.
The Debtor explained that its case is a complex bankruptcy case
where its scheduled debt exceeds $10M with a majority of that
debt being listed as secured. The Debtor also added that there
are multiple secured creditors to which that debt is owed. As a
result, the Debtor asserted that it needs additional time to
determine what creditors maintain what interests in its assets in
order to propose an appropriate plan.
The Debtor also explained that 45 proof of claims have been filed
so far and it has not had sufficient time to complete its
analysis to determine their legitimacy and whether the amount
asserted in the proof of claims is correct.
Global Aviation Technologies LLC is represented by:
Nicholas R. Grillot, Esq.
1617 N. Waterfront Parkway, Ste. 400
Wichita, KS 67206-6639
HINKLE LAW FIRM LLC
Tel: (316) 660-6211
Email: ngrillot@hinklaw.com
About Global Aviation Technologies LLC
Global Aviation Technologies LLC sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. D. Kan. Case No. 23-10111)
on February 20, 2023. In the petition signed by Candace Cottner,
managing member and director of finance, the Debtor disclosed up
to $500,000 in assets and up to $50 million in liabilities.
Judge Mitchell L. Herren oversees the case.
Nicholas R. Grillot, Esq., at Hinkle Law Firm LLC, represents the
Debtor as legal counsel.
GLOBALSTAR INC: Egan-Jones Retains CC Senior Unsecured Ratings
--------------------------------------------------------------
Egan-Jones Ratings Company on August 9, 2023, maintained its 'CC'
foreign currency and local currency senior unsecured ratings on
debt issued by Globalstar, Inc. EJR also withdraws rating on
commercial paper issued by the Company.
Headquartered in Covington, Louisiana, Globalstar, Inc. provides
mobile voice and data communications services via satellite.
GOBO LTD: Court OKs Cash Collateral Access Thru Feb 2024
--------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Ohio,
Eastern Division, authorized Gobo, Ltd. to use cash collateral on
an interim basis in accordance with its agreement with The
Huntington National Bank.
The Debtor represents that The Huntington National Bank may assert
an interest in the cash collateral.
The Debtor requires the use of cash collateral to pay ordinary
operating expenses and continue business operations.
The parties agreed the Debtor may use cash collateral until the
earlier to occur of February 29, 2024; or the occurrence of a
Termination Event.
As adequate protection, the Secured Creditor is re-granted
post-petition liens to the Secured Creditor to the same extent,
amount, and priority as its respective pre-petition security
interests, if any, in cash collateral in existence on the Petition
Date, without the necessity of the re-filing of any UCC Financing
Statement or other documents.
The Debtor will, for each month during the Interim Period, pay to
the Secured Creditor an amount equal to the interest at the
applicable non-default contract rate of interest on the Secured
Creditor's claims, in the amount of $13,974, no later than the 15th
day of each month.
The Debtor's authority to use cash collateral will automatically
and immediately terminate without any further action by the Secured
Creditor or the Court and a Termination Event will occur without
prior notice upon the occurrence of any of the following:
(i) the Debtor's Chapter 11 case is dismissed or converted to
a case under Chapter 7 of the Bankruptcy Code;
(ii) the earlier of (y) the date of the entry of an order of
the Court appointing an examiner with enlarged powers (beyond those
set forth in Sections 1104(c) and 1106(a)(3) and (4) of the
Bankruptcy Code) for the Debtor; or (z) the date the Debtor files a
motion, application or other pleading consenting to or acquiescing
in any such appointment; or
(iii) the Court suspends the Debtor's 11 U.S.C. Section 305 of
the Bankruptcy Code.
A copy of the Court's order and the Debtor's budget is available at
https://urlcurt.com/u?l=7tIJFt from PacerMonitor.com.
The Debtor projects $32,500 in total revenue and $28,378 in total
expenses for the period from March 1 to May 31, 2023.
About Gobo, Ltd.
Gobo, Ltd. is an Ohio limited liability company which owns and
operates real estate generally known as 4000 Horizons Drive,
Columbus, Ohio 43220. It is owned by Donald A. Lee and his wife
Cheryl B. Lee.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Ohio Case No. 23-50619) on March 1,
2023. In the petition signed by Donald A. Lee, as president, the
Debtor disclosed up to $10 million in both assets and liabilities.
Judge Mina Nami Khorrami oversees the case.
Myron N. Terlecky, Esq., at Strip Hoppers Leithart McGrath and
Terlecky Co., LPA, represents the Debtor as legal counsel.
GREEN DISTRICT: Court OKs Interim Cash Collateral Access
--------------------------------------------------------
The U.S. Bankruptcy Court for the Western District of Kentucky,
Louisville Division, authorized Green District Franchisee Parent,
Inc. to use cash collateral on an interim basis in accordance with
the budget, with a 10% variance.
As previously reported by the Troubled Company Reporter, 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.
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 adequate protection, the Cash Collateral Creditor is granted
valid and enforceable, perfected, and non-avoidable liens of other
secured creditors.
The Replacement Liens granted by will be deemed effective, valid,
and perfected as of the Petition Date without the necessity of the
filing or lodging by or with any entity of any documents or
instruments otherwise required to be filed or lodged under
applicable nonbankruptcy law.
A further hearing on the matter is set for September 19, 2023 at 10
a.m.
A copy of the motion is available at https://urlcurt.com/u?l=yIfKFh
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.
GXO LOGISTICS: Moody's Alters Outlook on 'Ba1' CFR to Positive
--------------------------------------------------------------
Moody's Investors Service changed the outlook for GXO Logistics,
Inc.'s to positive from stable. Moody's also affirmed the company's
Ba1 corporate family rating, Ba1-PD probability of default rating
and Ba1 senior unsecured notes rating. The speculative grade
liquidity rating was upgraded to SGL-1 from SGL-2.
The positive outlook reflects Moody's expectation that GXO's
improved credit metrics and very good liquidity will be sustained.
Moody's expects that the company's current positive momentum in
operating results will continue well into 2024 as new contract wins
should offset increasing labor costs and capital expenditure
requirements. Further, Moody's expects that GXO will continue its
strategy of maintaining low financial leverage, a modest appetite
for M&A, and sufficient liquidity to address the cyclicality in the
markets it serves. As part of that strategy, Moody's expects the
company will continue to invest appropriately in its operations and
manage the risks around its diverse end-market customers, which are
exposed to diverse regional developments and economic cycles.
Upgrades:
Issuer: GXO Logistics, Inc.
Speculative Grade Liquidity Rating, Upgraded to SGL-1 from SGL-2
Affirmations:
Issuer: GXO Logistics, Inc.
Corporate Family Rating, Affirmed Ba1
Probability of Default Rating, Affirmed Ba1-PD
Senior Unsecured Regular Bond/Debenture, Affirmed Ba1
Outlook Actions:
Issuer: GXO Logistics, Inc.
Outlook, Changed To Positive From Stable
RATINGS RATIONALE
The ratings reflect GXO's significant scale and competitive
position internationally in logistics services. The company
benefits from the secular growth of e-commerce and positive growth
trends in logistics outsourcing that will support organic growth.
In addition, Moody's recognizes that GXO's contract logistics
business is a leading worldwide provider of a range of services and
among the largest in North America, U.K. and Europe for
e-fulfillment, including reverse logistics. Furthermore, the
contract logistics business is expected to be stable, and GXO
benefits from its operations serving different end markets as well
as its diverse customer base.
With GXO's significant geographic scale, Moody's does not foresee
large acquisitions. However, small to medium sized acquisitions, as
the company endeavors to fill in certain service categories and
expand geographic coverage are likely. Moody's believes new
business wins for GXO will have a positive impact over the next
18-24 months as revenues ramp up. Moody's expects GXO to make
ongoing and meaningful investments in its technology infrastructure
to support both revenue growth as well as improvement in operating
margin over the next few years. Moody's expects operating margin
will improve to about 6% and debt-to-EBITDA (Moody's standard
adjustments) will approximate 2.5x in 2024.
The SGL-1 speculative grade liquidity rating reflects Moody's
expectation that the company will have very good liquidity. Moody's
expects liquidity to be more than ample to meet short term funding
needs. GXO has a cash balance of $305 million and $799 million
available on its $800 million revolving credit facility as of June
2023. Moody's anticipates free cash flow to be in the range of $125
million to $180 million over the next 12 to 18 months after an
increase in capital spending. Moody's expects GXO's free cash flow
to be used to pay down debt and for strategic acquisitions before
any shareholder distributions are considered.
Environmental, Social and Governance (ESG) considerations are not
material to the rating. GXO's environmental risks reflect its
reliance on natural capital and exposure to carbon transition
risks, while social risks related to human capital risk and health
and safety. Partially mitigating both these risks is GXO's balanced
financial strategies and moderate leverage profile.
The positive outlook reflects Moody's expectation that solid
organic revenue growth and new contract wins will drive improved
earnings and cash flow that will sustain leverage at about 2.5x.
The outlook also includes Moody's expectation that GXO will
maintain a conservative financial policy with acquisitions more
bolt-on in nature, and future shareholder returns that balance a
conservative financial policy.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded with EBITDA margin sustained around
16%, while also preserving financial flexibility to fund what may
be large capital investments to prefund revenue expansion and
strong liquidity to manage through the cyclical end-markets.
Moody's would also expect the company to achieve debt-to-EBITDA
approaching 2.0 times and FFO-to-debt maintained around 30% while
continuing to grow the business as planned. Finally, maintenance of
a conservative financial policy commensurate with a commitment to
an investment grade rating would be necessary for a rating
upgrade.
The ratings could be downgraded if GXO's debt-to-EBITDA is
sustained above 3.5x, EBITDA margin declines below 10%, or
liquidity deteriorates due to weakening end markets or operational
challenges. Additionally, if the company engages in a more
aggressive financial policy, including substantial debt funded
acquisitions and/or shareholder friendly transactions, the ratings
could be downgraded.
The principal methodology used in this rating was Surface
Transportation and Logistics published in December 2021.
GXO Logistics is a technology enabled business that facilities the
management and distribution of goods, order fulfillment, reverse
logistics, and other high end supply chain services. The company
has long-term contractual relationships with high renewal rates.
GXO was spun-off in August 2021 from XPO, Inc. Revenue for the last
twelve months ended June 30, 2023 was $9.5 billion.
HANESBRANDS INC: Egan-Jones Retains B Senior Unsecured Ratings
--------------------------------------------------------------
Egan-Jones Ratings Company on August 7, 2023, maintained its 'B'
foreign currency and local currency senior unsecured ratings on
debt issued by Hanesbrands, Inc. EJR also withdraws rating on
commercial paper issued by the Company.
Headquartered in Winston-Salem, North Carolina, Hanesbrands, Inc.
manufactures apparels and clothing products.
HARVARD APPARATUS: Incurs $2.6 Million Net Loss in Second Quarter
-----------------------------------------------------------------
Harvard Apparatus Regenerative Technology, Inc. filed with the
Securities and Exchange Commission its Quarterly Report on Form
10-Q disclosing a net loss of $2.61 million for the three months
ended June 30, 2023, compared to a net loss of $1.34 million for
the three months ended June 30, 2022.
For the six months ended June 30, 2023, the Company reported a net
loss of $5.50 million compared to a net loss of $3.52 million for
the six months ended June 30, 2022.
As of June 30, 2023, the Company had $5.78 million in total assets,
$1.98 million in total liabilities, and $3.79 million in total
stockholders' equity.
Harvard Apparatus said, "We have incurred substantial operating
losses since our inception, and as of June 30, 2023 had an
accumulated deficit of approximately $88.5 million and will require
additional financing to fund future operations. We expect that our
operating cash and short-term investments on-hand as of June 30,
2023 of approximately $4.7 million will enable us to fund our
operating expenses and capital expenditure requirements into the
first quarter of 2024. We expect to continue to incur operating
losses and negative cash flows from operations for 2023 and in
future years. Therefore, as disclosed in Note 1 to our Condensed
Consolidated Financial Statements appearing elsewhere in this
Quarterly Report on Form 10-Q, these conditions raise substantial
doubt about our ability to continue as a going concern.
"We will need to raise additional funds to fund our operations. In
the event we do not raise additional capital from outside sources
before or during the first quarter of 2024, we may be forced to
curtail or cease 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/1563665/000149315223028321/form10-q.htm
About Harvard Apparatus Regenerative
Holliston, Massachusetts-based Harvard Apparatus Regenerative
Technology, Inc. formerly Biostage, Inc., is a clinical-stage
biotechnology company focused on the development of regenerative
medicine treatments for disorders of the gastro-intestinal system
and other organs that result from cancer, trauma or birth defects.
The Company's technology is based on its proprietary cell-therapy
platform that uses a patient's own stem cells to regenerate and
restore function to damaged organs.
Biostage reported a net loss of $6.07 million for the year ended
Dec. 31, 2022, compared to a net loss of $7.98 million for the year
ended Dec. 31, 2021. As of Dec. 31, 2022, the Company had $2.40
million in total assets, $1.41 million in total liabilities, and
$4.18 million in series E convertible preferred stock, and a total
stockholders' deficit of $3.19 million.
Boston, MA-based Marcum LLP, the Company's auditor since 2022,
issued a "going concern" qualification in its report dated March
30, 2023, citing that the Company has suffered recurring losses
from operations, has an accumulated deficit, uses cash flows in its
operations, and will require additional financing to continue to
fund its operations. These conditions raise substantial doubt
about the Company's ability to continue as a going concern.
HAWAIIAN ELECTRIC: S&P Downgrades ICR to 'B-', On Watch Negative
----------------------------------------------------------------
S&P Global Ratings downgraded Hawaiian Electric Industries Inc.
(HEI) and all of its rated subsidiaries to 'B-' from 'BB-'. The
ratings remain on CreditWatch, where S&P placed them with negative
implications on Aug. 15, 2023.
The CreditWatch placement with negative implications reflects the
potential for additional downgrades of one or more notches within
the coming months.
HEI announced that it will suspend its common dividend beginning
with the third quarter of 2023 and has essentially fully drawn on
its $375 million revolving credit facilities. S&P said, "We view
management's decisions as prudent under the current economic
conditions, reducing the company's liquidity risk. We believe the
company has sufficient cash to pay for its debt maturities at least
through 2025. This includes $100 million maturing in November 2023
and $109 million in 2025. Furthermore, we expect that the company
will reduce its capital spending and operating and maintenance
costs such that it will generate positive discretionary cash flow.
While these steps are prudent to reduce liquidity risk, we also
view them as confirmation of the company's likely limited
consistent capital markets access because of the class-action
lawsuits associated with Hawaii's wildfires. Given the essential
nature of the services provided by HEI, we believe that having
consistent access to the capital markets is fundamental for the
long-term success of its operations."
S&P said, "Hawaii Electric confirmed it is seeking advice from
experts in the wake of the wildfires. While we believe HEI's goal
is to remain a strong and a financially healthy enterprise in the
wake of the Maui wildfires, we also view the engagement with
financial advisors and scenario planning as indicative of the
uncertainties associated with the pending litigation and the
increased potential for adverse developments that could affect the
company's debt service capacity in the future.
"We believe the current situation requires extraordinary regulatory
support. We currently assess the Hawaii regulatory construct as
more credit supportive, somewhat below average relative to its
North American regulated utility peers. However, given the
potential economic stress on HEI, we believe the company will
require consistent and extraordinary regulatory support. We believe
this consistently higher level of support, which we have not
previously seen from the Hawaii's Public Utilities Commission, will
likely be challenging because of the pressure it would place on the
customer bill.
"To reflect these above-mentioned higher risks for the company, we
revised HEI's business risk profile downward to fair from
satisfactory. Additionally, because we anticipate that the
regulatory construct will not likely be sufficient to consistently
meet the utility's timely needs throughout this extraordinary
situation, we assess the company's financial measures against our
standard volatility table. Previously we assessed the company's
financial measures against our more forgiving medial volatility
table. Accordingly, we revised our assessment of the company's
financial risk profile downward to aggressive from significant.
"Over the past week fatalities have unfortunately increased by more
than 15% and unaccounted individuals remain greater than 800. While
we have no knowledge or insights beyond what has been reported in
the media as to whether the company may have caused or contributed
to the wildfires, we expect that the economic and potential
non-economic damages may exceed the Federal Emergency Management
Agency's initial $5.5 billion damage assessment. As the fatalities
continue to rise, pressure is likely to increase on all
stakeholders, including HEI. The class-action lawsuits filed
against the company greatly increase the uncertainty and risk for
the company. While the full resolution of these lawsuits may take
years, should the company be deemed negligent, the company's
financial measures would materially deteriorate. Given this rising
risk that may depress HEI's credit metrics over the longer term and
our lower degree of predictability in HEI's credit ratios, beyond
what can be reasonably built in our forecasts, we revised downward
our negative financial policy modifier to -2 notches from -1
notch.
"The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) will
investigate the cause of Hawaii's wildfires. We expect that the ATF
will provide a highly credible independent assessment of Hawaii's
wildfires. Should their independent assessment determine that the
utility contributed to the wildfire, it would be negative for HEI's
credit quality. However, even if the report does not identify the
utility, it is probable that the plaintiffs to the class-action
lawsuits will retain their own wildfire experts who would likely
identify that the utility in some manner contributed to the
wildfires. As such, we expect that regardless of the ATF's
findings, the class-action lawsuits are likely to proceed,
pressuring the company's credit quality until such time as the
legal issues are settled or resolved in the courts.
"The CreditWatch placement with negative implications reflects the
potential for additional downgrades of one or more notches within
the coming months. This could occur if it is determined that the
company contributed to the wildfires or we determine the company's
liquidity is less than adequate. We will continue to closely
monitor developments, including management's strategic plan for
restoring credit quality, and expect to resolve the CreditWatch
placement pending further updates."
Environmental, social, and governance (ESG) credit factors for this
change in credit rating/outlook and/or CreditWatch status:
-- Physical risks
HEART HEATING: Court OKs Cash Collateral Access on Final Basis
--------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Colorado authorized
Heart Heating & Cooling, LLC to use cash collateral on a final
basis, in accordance with the budget.
The Debtor requires use of its cash on hand, its future receipts,
and accounts receivable to fund its post-Petition operations.
The Debtor has several types of secured creditors, and parties who
assert an interest in the Debtor's future receipts, primarily auto
finance and/or leasing companies, secured tax claimants, as well as
numerous merchant cash advance parties.
Specifically with respect to tax claimants, the Debtor incurred
unpaid state payroll tax liabilities, interest, and penalties to
the Colorado Department of Revenue in the approximate amount of
$162,000.
The Department asserts a statutory lien as a result of the
non-payment of the State Payroll Tax Liability which is first and
prior lien under C.R.S. Sections 39-26-117(1) and/or
39-22-604(7)(a), on the Debtor's cash on hand, accounts receivable
and other cash equivalents as well as other assets of the Debtor.
The Secured Lenders are entitled, pursuant to 11 U.S.C. Sections
361, 363(c)(2) and 363(e), to adequate protection of their
interests in the pre-petition Collateral, including the cash
collateral, in an amount equal to the aggregate post-petition
diminution in value of the pre-petition collateral. The Adequate
Protection Obligations will commence August 1, 2023 and be due on
the first of each month thereafter for the term of the Order. The
Adequate Protection Obligations are as follows:
a. 50% of the Debtor's net cash will be paid to Secured
Lenders in order of priority under the Bankruptcy Code and Colorado
law regarding the perfection and priority of secured interests, as
follows:
i. $3,244 will be paid to the State of Colorado pursuant
to the Stipulation between the State of Colorado and the Debtor;
ii. the total of $30,004 to vehicle lenders; and,
iii. $1,000 pro rata to the MCA parties as described the
Motion and pursuant to Docket No. 73.
The Adequate Protection Obligations due to the Secured Lenders will
constitute a superpriority claim against the Debtor, subject and
subordinate only to the Carve Out. Payment of the Adequate
Protection Obligations will commence promptly after the entry of
the Order.
To the extent that any of the Secured Lenders have a properly
perfected pre-petition lien on the cash collateral, the Secured
Lenders will have a replacement lien on all post-petition cash
collateral in order for the Debtor to continue to operate to the
extent that there is a decrease in value of any Secured Lender's
interest in the cash collateral in the same extent and priority
that existed on the Petition Date.
The Carve-Out means: (i) all statutory fees required to be paid by
the Debtor to the Clerk of the Bankruptcy Court and to the Office
of the U.S. Trustee under 28 U.S.C. Section 1930(a; (ii) the
disbursements set forth in the Final Budget for "Professional Fees"
to the extent accrued during the period covered by the Final Budget
and remaining unpaid upon termination of the use of cash collateral
under the Order; (iii) (A) the Professional Fees allowed by the
Court, and (B) fees and expenses incurred by a trustee under 11
U.S.C. Section 726(b); provided that the Carve Out will not be
available to pay any Professional Fees unless allowed the Court and
payable under 11 U.S.C. Sections 328, 330 and 331.
The Debtor's right to use the cash collateral will terminate on the
earlier of:
a. the Debtor's failure to make any of the Adequate Protection
Obligations or otherwise cure such payments after seven days
written notice;
b. the Court's appointment of a Chapter 11 trustee or
examiner;
c. conversion of the Debtor's Chapter 11 case to a Chapter 7
case;
d. the Debtor's failure to comply with the requirements set
forth in the Order;
e. a material adverse change in the Debtor's financial
condition or business operations; or
f. January 31, 2023.
A copy of the order is available at https://urlcurt.com/u?l=zdAfst
from PacerMonitor.com.
About Heart Heating & Cooling, LLC
Heart Heating & Cooling, LLC is a HVAC contractor in Colorado
Springs, Colorado.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Colo. Case No. 23-13019) on July 11,
2023. In the petition signed by Robert M. Townsend, chief executive
officer, the Debtor disclosed $2,676,312 in assets and $11,173,434
in liabilities.
Judge Thomas B. McNamara oversees the case.
K. Jamie Buechler, Esq., at Buechler Law Office, LLC, represents
the Debtor as legal counsel.
HERITAGE POWER: Files Amendment to Disclosure Statement
-------------------------------------------------------
Heritage Power, LLC, and its affiliates submitted a Second Amended
Disclosure Statement for Joint Plan of Reorganization dated August
21, 2023.
The Plan provides for the resolution of claims against and
interests in the Debtors and implements a distribution scheme
pursuant to the Bankruptcy Code.
Distributions under the Plan shall be made with (i) Cash on hand,
including Cash from operations; (ii) the Cash proceeds of the Exit
Facility; and (iii) New Equity Interests.
Following months of productive discussions, coordination on due
diligence efforts and arm's length, good faith negotiations between
the parties, the Debtors, GenOn, and the Ad Hoc Committee reached
an agreement regarding the Debtors' restructuring, which was
memorialized in the Restructuring Support Agreement.
The Restructuring Support Agreement contemplates a comprehensive
and consensual restructuring transaction that will be implemented
through the Plan, resulting in a substantial deleveraging while
maximizing stakeholder recoveries. If the Plan process is not
successful, the Debtors will instead pursue a sale of all or
substantially all of their assets in accordance with bidding
procedures to be filed with the Court. Pursuant to the
Restructuring Support Agreement, the holders of First Lien Claims
have agreed to establish a vehicle to act as a stalking horse
bidder in any such sale process via the submission of a credit
bid.
Like in the prior iteration of the Plan, each holder of an Allowed
General Unsecured Claim shall receive its Pro Rata share of the GUC
Distribution, payable on the later of the Effective Date and the
date that is 10 Business Days after the date on which such General
Unsecured Claim becomes an Allowed General Unsecured Claim, in each
case, or as soon as reasonably practicable thereafter. Class 5
Unsecured Claims will receive a distribution of 0.346% of their
allowed claims.
On the Effective Date, all Existing Equity Interests shall be
canceled, released, extinguished, and discharged, and will be of no
further force or effect. The holder of Existing Equity Interests
shall receive no recovery or distribution on account of the
Existing Equity Interests.
During the period from the Confirmation Date through the Effective
Date, the Debtors may continue to operate their businesses as
debtors-in-possession in the ordinary course in a manner consistent
with past practice in all material respects, and as otherwise
necessary to consummate the Plan, in all cases in accordance with
the Restructuring Support Agreement, subject to all applicable
orders of the Bankruptcy Court.
Distributions under the Plan shall be made with: (i) Cash on hand,
including Cash from operations; (ii) the Cash proceeds of the Exit
Facility; and (iii) New Equity Interests.
On the Effective Date, the Reorganized Debtors shall be authorized
to issue and deliver (or cause to be issued and delivered) the New
Equity Interests without the need for any further corporate or
shareholder action subject to Article IV.O of the Plan. The New
Equity Interests, when so issued and delivered, shall be duly
authorized, validly issued, fully paid and nonassessable. Subject
to Article VI.B of the Plan (New Equity Interests Reserve), Article
VI.M of the Plan (L/C Reserve), and Article VI.N of the Plan
(Revolving L/C Reserve), on the Effective Date, 100% of the New
Equity Interests shall be held by the holders of Allowed First Lien
Secured Claims (subject to dilution by any New Equity Interests
issued as Exit Facility Participation Consideration, as Backstop
Consideration, or under any Management Incentive Plan).
The Bankruptcy Court has directed that, in order to be counted for
voting purposes, Ballots for the acceptance or rejection of the
Plan must be received by the Solicitation Agent by no later than
September 25, 2023, at 4:00 p.m.
A full-text copy of the Second Amended Disclosure Statement dated
August 21, 2023 is available at https://urlcurt.com/u?l=fDTtQT from
PacerMonitor.com at no charge.
Counsel for the Debtors:
Charles A. Beckham, Jr., Esq.
Kelli S. Norfleet, Esq.
Arsalan Muhammad, Esq.
Kourtney Lyda, Esq.
David Trausch, Esq.
HAYNES AND BOONE, LLP
1221 McKinney Street, Suite 4000
Houston, Texas 77010
Telephone: (713) 547-2000
Facsimile: (713) 547-2600
Email: charles.beckham@haynesboone.com
Email: kelli.norfleet@haynesboone.com
Email: arsalan.muhammad@haynesboone.com
Email: kourtney.lyda@haynesboone.com
Email: david.trausch@haynesboone.com
Kenric D. Kattner, Esq.
David L. Staab, Esq.
HAYNES AND BOONE, LLP
30 Rockefeller Plaza 26th Floor
New York, New York 10112
Telephone: (212) 659-7300
Facsimile: (212) 918-8989
Email: kenric.kattner@haynesboone.com
Email: david.staab@haynesboone.com
About Heritage Power
Heritage Power, LLC and affiliates are a power company with a focus
on power generation activities in Pennsylvania, New Jersey and
Ohio. The Debtors own or operate sixteen power generation assets
with 13 in Pennsylvania, two in New Jersey and one in Ohio.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Texas Lead Case No. 23-90032) on Jan.
24, 2023, with $50 million to $100 million in assets and $500
million to $1 billion in liabilities. David Freysinger, president
of Heritage Power, signed the petitions.
Judge Christopher M. Lopez oversees the cases.
The Debtors tapped Haynes and Boone, LLP as legal counsel; Alvarez
and Marsal North America, LLC as restructuring and financial
advisor; and Epiq Corporate Restructuring, LLC as notice, claims
and solicitation agent.
The counsel to the ad hoc group of prepetition lenders is Milbank,
LLP. The ad hoc group of prepetition lenders also retained Porter
Hedges, LLP, Ross Aronstam & Moritz, LLP and Ducera Partners, LLC
as advisors.
Jefferies Finance, LLC, as administrative agent, is represented by
Latham & Watkins, LLP.
MUFG, collateral agent, is represented by Thompson Hine, LLP.
J. Aron & Company, LLC, counterparty under an ISDA Master
Agreement, is represented by Cleary Gottlieb Steen & Hamilton, LLP.
HILLENBRAND INC: Egan-Jones Retains BB+ Senior Unsecured Ratings
----------------------------------------------------------------
Egan-Jones Ratings Company on August 3, 2023, maintained its 'BB+'
foreign currency and local currency senior unsecured ratings on
debt issued by Hillenbrand, Inc. EJR also withdraws rating on
commercial paper issued by the Company.
Headquartered in Batesville, Indiana, Hillenbrand, Inc.
manufactures and sells premium business-to-business products and
services.
HOPE COMMUNITY: S&P Places 'BB-' Rev Bond Rating on Watch Negative
------------------------------------------------------------------
S&P Global Ratings placed its 'BB-' long-term rating on the St.
Paul Housing & Redevelopment Authority, Minn.'s series 2015 and
2020A revenue bonds, issued for HOPE Community Academy (HOPE), on
CreditWatch with negative implications.
"The CreditWatch placement reflects persistent weakening in
underlying financial metrics, with a resulting potential debt
service coverage covenant violation for fiscal 2023 and short-term
uncertainties regarding potential bondholder action," said S&P
Global Ratings credit analyst Sue Ryu.
HORSIN AROUND: Claims Will Be Paid from Property Sale/Refinance
---------------------------------------------------------------
Horsin Around Holding Company filed with the U.S. Bankruptcy Court
for the District of Maine a Disclosure Statement with respect to
Plan of Reorganization.
The Debtor owns a single asset real estate property that comprises
a business building, outdoor space and a parking lot located at 56
Main Street, Skowhegan, Maine.
Since its inception, the Debtor has leased the property to Horsin
Around Childcare and/or Horsin Around Skowhegan LLC. Debtor
purchased the property at 56 Main Street January 7, 2014. Debtor
believes the value is $350,000 as a going concern, and at least
$211,000 liquidated.
Currently, the property generates sufficient income to cover its
debt servicing expenses. Debtor proposes to reammortize the
mortgage at 7% interest for a new 240-month period with monthly
payments of $900.00. Debtor will pay the City of Skowhegan ongoing
taxes directly with the arrears repaid at 7% interest in 3 annual
installments of $2,500.00 by July 8, 2024, 2025, and 2026. Debtor
will further either sell or refinance the mortgages by the latter
date (July 8, 2026).
As of the Petition Date, the Debtor owed a modest arrearage to the
Kennebec Valley Council of governments, and relatively modest
property tax arrears. However, a short term income delay resulted
in a notice of statutory foreclosure. Reinstatement was followed by
another notice of foreclosure after a payment was improperly
processed by the lender. These foreclosure notices resulted in
significant legal bills, preventing Debtor from regaining its
financial security and from exploring sale of the building.
Although Debtor's plan contemplates a sale by July 8, 2026, Debtor
has proactively listed the real estate at $399,900, MLS #1564739.
While that listing may require periodic price cuts in the coming
months, it exceeds the debt associated with it by at least
$270,000.00. Even a significant reduction would see all creditors
paid in full, likely months or years before the plan's sale
deadline. Because all creditors will be paid in full at closing,
Debtor has not yet sought approval of the retention of a real
estate agent.
The Plan provides for periodic payments on the property tax arrears
to the City of Skowhegan, at 7% interest, with ongoing payments
timely made directly. The Kennebec Valley Greater Council of
Governments mortgage is to be repaid at $900.00 per month,
representing a reammortization of its debt at 7% interest over 240
months, but with a balloon payment no later than month 36, July
2026. At this time, it is anticipated the balloon payment will be
paid well in advance of Month 36.
The Plan is feasible because the Debtor has significant equity in
the property. While the income it generates will cover the periodic
monthly payments with In re Till interest of 7%. The sale of the
real estate will address Debtor's reason for filing and ensure its
successful reorganization. The Debtor, therefore, believes that the
Plan is feasible based on the restructured debt, current Assets,
and anticipated future funding.
A full-text copy of the Disclosure Statement dated August 17, 2023
is available at https://urlcurt.com/u?l=2NbT1m from
PacerMonitor.com at no charge.
Debtor's Counsel:
J. Scott Logan, Esq.
Law Office of J. Scott Logan, LLC
75 Pearl Street, Ste. 211
Portland, Maine 04101
Phone: 207-699-1314
Email: scott@southernmainebankruptcy.com
About Horsin Around
Horsin Around Holding Company owns a single asset real estate
property that comprises a business building, outdoor space and a
parking lot located at 56 Main Street, Skowhegan, Maine.
The Debtor filed Chapter 11 Petition (Bankr. D. Maine Case No.
23-10131) on July 7, 2023.
J. Scott Logan, Esq. of the Law Office of J. Scott Logan, LLC is
the Debtor's Counsel.
IMEDIA BRANDS: $40 Million Chapter 11 Sale to IV Media Okayed
-------------------------------------------------------------
Emily Lever of Law360 reports that home shopping business iMedia
Brands Inc. got approval from a Delaware bankruptcy court Monday,
August 14, 2023, to sell all its assets to IV Media LLC for $40
million, resolving a compressed sale process the court reluctantly
allowed given the company's dwindling cash reserves.
About iMedia Brands
iMedia Brands, Inc. is an interactive, global media company that
offers, manages, and markets merchandise, including men's and
women's accessories and apparel, under owned and third-party
brands
through various entertainment, e-commerce, and digital service
platforms.
iMedia Brands and 11 of its affiliates filed for bankruptcy
protection on June 28, 2023 (Bankr. D. Del., Lead Case No.
23-10852). The petitions were signed by James Alt as chief
transformation officer.
The Debtors reported total assets of $272,596,462 and total
liabilities of $373,713,748 as of April 29, 2023.
Ropes & Gray LLP serves as the Debtor's general bankruptcy counsel
and Pachulski Stang Ziehl & Jones LLP serves as co-bankruptcy
counsel. Huron Consulting Services LLC acts as the Debtors'
financial advisor; Lincoln Partners Advisors LLC is the Debtors'
investment banker; and Stretto Inc. is the Debtors' notice and
claims agent.
INFINERA CORP: Egan-Jones Retains CC Senior Unsecured Ratings
-------------------------------------------------------------
Egan-Jones Ratings Company on August 10, 2023, maintained its 'CC'
foreign currency and local currency senior unsecured ratings on
debt issued by Infinera Corp (Infinera). EJR also withdraws rating
on commercial paper issued by the Company.
Headquartered in San Jose, California, Infinera Corp (Infinera) is
a provider of networking equipment, software, and services.
INSYS THERAPEUTICS: Former CEO Must Repay $6-Million Defense Fees
-----------------------------------------------------------------
Rick Archer of Law360 reports that a Delaware bankruptcy judge
Thursday, August 17, 2023, found the liquidating trustee for
drugmaker Insys Therapeutics can claw back $6 million it paid for
the criminal defense of ex-CEO John Kapoor, saying Kapoor can't
claim his defense was successful after serving prison time for the
charges.
About Insys Therapeutics
Headquartered in Chandler, Ariz., Insys Therapeutics Inc. --
http://www.insysrx.com/-- is a specialty pharmaceutical company
that develops and commercializes innovative drugs and novel drug
delivery systems of therapeutic molecules that improve patients'
quality of life. Using proprietary spray technology and
capabilities to develop pharmaceutical cannabinoids, Insys is
developing a pipeline of products intended to address unmet medical
needs and the clinical shortcomings of existing commercial
products. Insys is committed to developing medications for
potentially treating anaphylaxis, epilepsy, Prader-Willi syndrome,
opioid addiction and overdose, and other disease areas with a
significant unmet need.
As of March 31, 2019, Insys had $172.6 million in total assets,
$336.3 million in total liabilities, and a total stockholders'
deficit of $163.7 million.
Insys Therapeutics and six affiliated companies filed petitions
seeking relief under Chapter 11 of the Bankruptcy Code (Bankr. D.
Del. Lead Case No. 19-11292) on June 10, 2019.
The Debtors' cases are assigned to Judge Kevin Gross.
The Debtors tapped Weil, Gotshal & Manges LLP and Richards, Layton
& Finger, P.A., as legal counsel; Lazard Freres & Co. LLC as
investment banker; FTI Consulting, Inc. as financial advisor; and
Epiq Corporate Restructuring, LLC as claims agent.
Andrew Vara, acting U.S. trustee for Region 3, on June 20, 2019,
appointed nine creditors to serve on an official committee of
unsecured creditors in the Chapter 11 cases. Akin Gump Strauss
Hauer & Feld LLP, and Bayard, P.A., serve as the Committee's
attorneys; and Province, Inc., is the financial advisor.
* * *
Insys sold its epinephrine 7mg and 8.5mg unit-dose nasal spray
products and naloxone 8mg unit-dose nasal spray products and
certain equipment and liabilities to Hikma Pharmaceuticals USA
Inc.
for $17 million. It sold for $12.2 million to Chilion Group
Holdings US, Inc., its (i) CBD formulations across current
pre-clinical, clinical, third-party grants and investigator
initiated study activities (including any future activities or
indications), (ii) THC programs of Syndros oral dronabinol
solution, and (iii) Buprenorphine products. Insys sold to BTcP
Pharma, LLC for $52 million in royalty payments plus other amounts
all strengths, doses and formulations in the world (except for the
Republic of Korea, et al.). Insys sold to Pharmbio Korea, Inc.,
for $1.2 million in cash specific intellectual property, records
and certain other assets related to strengths, doses and
formulations of the Subsys Product in the Republic of Korea, Japan,
China, Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar,
Philippines, Singapore, Thailand, Timor-Leste, and Vietnam.
After selling substantially all of their assets, the Debtors filed
a Chapter 11 Plan and Disclosure Statement. Judge Kevin Gross on
Jan. 16, 2020, confirmed the Debtors' Plan of Liquidation.
INSYS THERAPEUTICS: Trustee Wants Insurer to Pay Share of Settlemen
-------------------------------------------------------------------
Alex Wittenberg of Law360 reports that Insys Therapeutics'
liquidation trustee asked a Delaware bankruptcy judge to force XL
Specialty Insurance Co. to pay liability claims tied to a $175
million settlement the trust reached in April with four of the
drugmaker's former directors over allegations that their failures
of oversight enabled unlawful sales of Insys' opioid product.
About Insys Therapeutics
Headquartered in Chandler, Ariz., Insys Therapeutics Inc. --
http://www.insysrx.com/-- is a specialty pharmaceutical company
that develops and commercializes innovative drugs and novel drug
delivery systems of therapeutic molecules that improve patients'
quality of life. Using proprietary spray technology and
capabilities to develop pharmaceutical cannabinoids, Insys is
developing a pipeline of products intended to address unmet medical
needs and the clinical shortcomings of existing commercial
products. Insys is committed to developing medications for
potentially treating anaphylaxis, epilepsy, Prader-Willi syndrome,
opioid addiction and overdose, and other disease areas with a
significant unmet need.
As of March 31, 2019, Insys had $172.6 million in total assets,
$336.3 million in total liabilities, and a total stockholders'
deficit of $163.7 million.
Insys Therapeutics and six affiliated companies filed petitions
seeking relief under Chapter 11 of the Bankruptcy Code (Bankr. D.
Del. Lead Case No. 19-11292) on June 10, 2019.
The Debtors' cases are assigned to Judge Kevin Gross.
The Debtors tapped Weil, Gotshal & Manges LLP and Richards, Layton
& Finger, P.A., as legal counsel; Lazard Freres & Co. LLC as
investment banker; FTI Consulting, Inc. as financial advisor; and
Epiq Corporate Restructuring, LLC as claims agent.
Andrew Vara, acting U.S. trustee for Region 3, on June 20, 2019,
appointed nine creditors to serve on an official committee of
unsecured creditors in the Chapter 11 cases. Akin Gump Strauss
Hauer & Feld LLP, and Bayard, P.A., serve as the Committee's
attorneys; and Province, Inc., is the financial advisor.
* * *
Insys sold its epinephrine 7mg and 8.5mg unit-dose nasal spray
products and naloxone 8mg unit-dose nasal spray products and
certain equipment and liabilities to Hikma Pharmaceuticals USA Inc.
for $17 million. It sold for $12.2 million to Chilion Group
Holdings US, Inc., its (i) CBD formulations across current
pre-clinical, clinical, third-party grants and investigator
initiated study activities (including any future activities or
indications), (ii) THC programs of Syndros oral dronabinol
solution, and (iii) Buprenorphine products. Insys sold to BTcP
Pharma, LLC for $52 million in royalty payments plus other amounts
all strengths, doses and formulations in the world (except for the
Republic of Korea, et al.). Insys sold to Pharmbio Korea, Inc.,
for $1.2 million in cash specific intellectual property, records
and certain other assets related to strengths, doses and
formulations of the Subsys Product in the Republic of Korea, Japan,
China, Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar,
Philippines, Singapore, Thailand, Timor-Leste, and Vietnam.
After selling substantially all of their assets, the Debtors filed
a Chapter 11 Plan and Disclosure Statement. Judge Kevin Gross on
Jan. 16, 2020, confirmed the Debtors' Plan of Liquidation.
INTERDIGITAL INC: Egan-Jones Retains BB+ Senior Unsecured Ratings
-----------------------------------------------------------------
Egan-Jones Ratings Company on August 11, 2023, maintained its 'BB+'
foreign currency and local currency senior unsecured ratings on
debt issued by InterDigital, Inc.
Headquartered in Wilmington, Delaware, InterDigital, Inc. designs
and develops technology for advanced digital wireless
telecommunications applications.
IONIS PHARMACEUTICALS: Egan-Jones Hikes Sr. Unsecured Ratings to B
------------------------------------------------------------------
Egan-Jones Ratings Company on August 2, 2023, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Ionis Pharmaceuticals, Inc. to B from B+. EJR also
withdraws rating on commercial paper issued by the Company.
Headquartered in Carlsbad, California, Ionis Pharmaceuticals, Inc.
operates as a biotechnology company.
ITTELLA INTERNATIONAL: Court OKs $6MM DIP Loan from UMB Bank
------------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California,
Los Angeles Division, authorized Ittella International LLC and
affiliates to use cash collateral and obtain postpetition
financing, on a final basis.
The Debtors are permitted to obtain postpetition financing from UMB
Bank, N.A. consisting of:
(a) an aggregate principal amount of up to $3 million in "new
money" revolving loans; and
(b) rolled-up loans under a Prepetition Credit Agreement held
by the Lender, in an aggregate amount of $3 million in principal
upon entry of the Interim Order,
in accordance with the terms and conditions set forth in the DIP
Credit Agreement, and all other terms and conditions of the DIP
Documents.
The borrowers under the DIP facility are Ittella International LLC;
Ittella's Chef, LLC (ICLLC); New Mexico Food Distributors, Inc.
(NMFD); Karsten Tortilla Factory, LLC (Karsten); BCI Acquisition,
Inc. (BCI); and TTCF-NM Holdings, Inc. (TTCF-NM). Tattooed Chef,
Inc., serves as DIP Guarantor.
The Debtors require the use of cash collateral and DIP loan
proceeds to make the payments authorized by other first-day orders,
conduct a meaningful sale process, and fund their operations
worldwide.
Ittella International, LLC, a California limited liability company,
ICLLC, NMFD, Karsten, BCI and UMB Bank, n.a. are parties to an
Amended and Restated Loan and Security Agreement dated as of June
30, 2022, pursuant to which the Lender provided the Debtors access
to a revolving credit facility in an amount of up to $25 million.
As of the Petition Date, the amount of the Lender's claim consists
of (a) $18.180 million in principal, and (b) $44,284 in accrued
interest, plus (c) approximately $50,000 in reimbursable attorneys'
fees, plus (d) $558,120 in contingent letter of credit
reimbursement expenses, plus (d) other fees, costs, indemnities.
These events constitute an "Termination Event":
a. August 17, 2023, unless the Final Order is entered on or
before that date;
b. August 25, 2023, unless Debtors will have delivered to
Lender a revised Updated Budget in form and substance acceptable to
Lender which demonstrates adequate liquidity to fund the Debtors'
operations through October 12, 2023;
c. October 17, 2023, unless the Debtors have closed a sale of
TCI's equity interests in any of its direct subsidiaries and/or
indirect subsidiaries, ICLLC's equity interests in Ittella Italy
SRL, and/or substantially all of the Debtors' other assets
generating a credit bid from Lender plus net cash proceeds
sufficient in the aggregate to satisfy the payment, in full, of the
Debtors' obligations to the Lender after giving effect to the
payment of all administrative and priority claims;
d. The occurrence of an "Event of Default" as defined in the
DIP Loan Agreement and the passage of any applicable cure period
set forth therein;
e. The failure of Debtors to comply with Section 4 or Section
5 of the DIP Orders;
f. Failure to comply with any of the milestones set forth in
any order granting the Debtors' Motion To: (1) Approve Auction(S)
And Bid Procedures For The Sale Of Equity And/Or Assets And (2) Set
Scheduling For A Motion To Approve The Sale Of Equity And/Or Assets
[Doc No.174];
g. Any other material breach by the Debtor of any other
obligations, representations, warranties or covenants in the DIP
Orders, which material breach is not cured on or within three
business days after written notice of such breach is given to the
Debtor; or
h. Reversal, vacatur, or modification (without consent of the
Lender) of the DIP Orders.
A copy of the order is available at https://urlcurt.com/u?l=6kECul
from Stretto, the claims agent.
About Ittella International LLC
Ittella International LLC supplies plant-based products.
Ittella International and seven affiliates sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Lead Case
No. 23-14154) on July 2, 2023. In the petition signed by Salvatore
Galletti, the chief executive officer, Ittella International
disclosed up to $50 million in both assets and liabilities.
Judge Sandra R. Klein oversees the cases.
David L. Neale, Esq., at Levene, Neale, Bender, Yoo and Golubchik
LLP, represents the Debtors as legal counsel.
J.T. AND SON: Taps Thompson Law Group as Bankruptcy Counsel
-----------------------------------------------------------
J.T. and Son Construction, LLC seeks approval from the U.S.
Bankruptcy Court for the Western District of Pennsylvania to employ
Thompson Law Group, P.C.
The Debtor requires legal counsel to:
a. Give advice with respect to the powers and duties of the
Debtor under the Bankruptcy Code;
b. Take all necessary action to protect and preserve the
Debtor's estate, including the prosecution of actions on behalf of
the Debtor, the defense of any actions commenced against the
Debtor, negotiations concerning all litigation in which the Debtor
is involved and object to claims filed against the estate;
c. Prepare legal papers; and
d. Perform other legal services in connection with the Debtor's
Chapter 11 case.
Thompson Law Group will charge $350 per hour for attorney's
services and $90 per hour for paralegal services.
In addition, the firm will seek reimbursement for expenses
incurred.
Prior to the petition date, the firm received a retainer of $5,000
from the Debtor.
Brian Thompson, Esq., an attorney at Thompson Law Group, disclosed
in a court filing that his firm is a "disinterested person" as that
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Brian C. Thompson, Esq.
Thompson Law Group, PC
125 Warrendale Bayne Road, Suite 200
Warrendale, PA 15086
Telephone: (724) 799-8404
Facsimile: (724) 799-8409
Email: bthompson@thompsonattorney.com
About J.T. and Son Construction
J.T. and Son Construction, LLC filed Chapter 11 petition (Bankr.
W.D. Pa. Case No. 23-21623) on Aug. 2, 2023, with up to $10 million
in both assets and liabilities. John Minarik, owner and operator,
signed the petition.
Judge John C. Melaragno oversees the case.
Brian C. Thompson, Esq., at Thompson Law Group, P.C. is the
Debtor's counsel.
JAGUAR HEALTH: Incurs $12.3 Million Net Loss in Second Quarter
--------------------------------------------------------------
Jaguar Health, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $12.29 million on $2.67 million of product revenue for the three
months ended June 30, 2023, compared to a net loss of $9.39 million
on $2.92 million of product revenue for the three months ended June
30, 2022.
For the six months ended June 30, 2023, the Company reported a net
loss of $24.69 million on $4.65 million of product revenue compared
to a net loss of $27.55 million on $5.55 million of product revenue
for the same period during the prior year.
As of June 30, 2023, the Company had $52.17 million in total
assets, $46.34 million in total liabilities, and $5.83 million in
total stockholders' equity.
Jaguar said, "Although the Company plans to finance its operations
and cash flow needs through equity and/or debt financing,
collaboration arrangements with other entities, license royalty
agreements, as well as revenue from future product sales, the
Company does not believe its current cash balances are sufficient
to fund its operating plan through one year from the issuance of
these unaudited condensed consolidated financial statements. There
can be no assurance that additional funding will be available to
the Company on acceptable terms, or on a timely basis, if at all,
or that the Company will generate sufficient cash from operations
to adequately fund operating needs. If the Company is unable to
obtain an adequate level of financing needed for the long-term
development and commercialization of our products, the Company will
need to curtail planned activities and reduce costs. Doing so will
likely have an adverse effect on our ability to execute our
business plan; accordingly, there is substantial doubt about the
ability of the Company to continue in existence 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/1585608/000155837023014683/jagx-20230630x10q.htm
About Jaguar Health
Jaguar Health, Inc. -- http://www.jaguar.health-- is a commercial
stage pharmaceuticals company focused on developing novel,
sustainably derived gastrointestinal products on a global basis.
The Company's wholly owned subsidiary, Napo Pharmaceuticals, Inc.,
focuses on developing and commercializing proprietary human
gastrointestinal pharmaceuticals for the global marketplace from
plants used traditionally in rainforest areas. Its Mytesi
(crofelemer) product is approved by the U.S. FDA for the
symptomatic relief of noninfectious diarrhea in adults with
HIV/AIDS on antiretroviral therapy.
Jaguar Health reported a net loss of $48.39 million for the year
ended Dec. 31, 2022, compared to a net loss of $52.60 million for
the year ended Dec. 31, 2021. As of Dec. 31, 2022, the Company had
$47.45 million in total assets, $48.81 million in total
liabilities, and a total stockholders' deficit of $1.35 million.
Larkspur, California-based RBSM, LLP, the Company's auditor since
2021, issued a "going concern" qualification in its report dated
March 24, 2023, citing that the Company has an accumulated deficit,
recurring losses, and expects continuing future losses. These
conditions raise substantial doubt about the Company's ability to
continue as a going concern.
JETASAP LLC: Court OKs Interim Cash Collateral Access
-----------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida,
Orlando Division, for authority to use cash collateral and obtain
post-petition financing, on an interim basis.
The Debtor requires authority to enter into the DIP Loan pursuant
to the Commitment Letter and the DIP Loan Documents, including the
Debtor-in-Possession Credit and Security Agreement substantially in
the form filed by the Debtor in the DIP Motion by and among the
Debtor and GVI Funding LLC.
The Debtor, pursuant to the DIP Loan Documents, one or more interim
initial advances in an aggregate amount not to exceed the amount
set forth in the first 13 weekly periods contained in the Budget
for a maximum borrowing of $150,000, to be loaned to Debtor to be
used for the payment of the payroll and payroll related expenses
for employees of JetASAP, LLC.
All DIP Obligations of the Debtor to the DIP Lender will be
immediately due and payable, and authority to use the proceeds of
the DIP Loan Documents will cease on the date that is the earliest
to occur of (i) any of the following events, or (ii) the date of
the Further Hearing:
(a) The entry of an order confirming a plan of reorganization
for any Debtor (unless otherwise agreed to by the DIP Lender);
(b) The entry of any order converting the Debtor's case to a
case under Chapter 7 or to a Successor Case under section 1112 of
the Bankruptcy Code (unless otherwise agreed to by the DIP
Lender);
(c) The entry of any order approving the 363 sale of all or
substantially all of any Debtor's assets (unless otherwise agreed
to by the DIP Lender);
(d) The entry in the Debtor's case of an order appointing a
responsible officer or any examiner with enlarged powers relating
to the operation of the business (powers beyond those set forth in
11 U.S.C. Section 1106(a)(3) and (4) under 11 U.S.C. Sections 105
or 1104;
(e) The entry of any order dismissing the Debtor's case under
Section 1112 of the Bankruptcy Code (unless otherwise agreed to by
the DIP Lender); or
(f) The occurrence of an Event of Default for which applicable
notice has been given under the Interim Order, the Final Order, or
the DIP Loan Documents, as applicable, and the expiration of any
applicable cure period without cure thereof.
As adequate protection, the DIP Lender is granted (i) first
priority liens on and first priority senior security interests in
favor of the DIP Lender in all now owned and hereafter acquired
Collateral of each Debtor that are not encumbered by any liens; and
(ii) a first priority lien and security interest, pursuant to 11
U.S.C. Section 364(c)(3), on all tangible and intangible assets and
property of the Debtor.
These events constitute an "Event of Default":
i. the granting of relief from the automatic stay to
foreclose a lien or the taking of control or possession of, or the
exercise of any right of setoff with respect to, any Collateral;
ii. the failure to obtain the entry of the Final Order with
terms satisfactory to the DIP Lender on or before 45 days after
entry of the Interim Order;
iii. the entry by the Bankruptcy Court or another court of
competent jurisdiction of an order disallowing any of the DIP
Obligations or determining that any provision of the DIP Loan
Documents is not enforceable according to its terms;
iv. the entry by the Bankruptcy Court of an order determining
that the DIP Liens are invalid or do not have the priority and
extent provided in the DIP Loan Documents, the Interim Order or the
Final Order;
v. the expiration or termination of the Debtor's exclusive
right to file and solicit acceptances of a plan of reorganization
under 11 U.S.C. Section 1121 without the solicitation and filing of
acceptances thereof; and
vi. the occurrence of an Event of Default under the DIP Loan
Documents (and the expiration of any period of cure, grace or
notice, if any, set forth in such agreement relating to such
default).
A further hearing on the matter is set for September 12, 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=oXvyun from PacerMonitor.com.
The Debtor projects total disbursements, on a weekly basis, as
follows:
$19,956 for the week ending August 26, 2023;
$14,825 for the week ending September 2, 2023;
$19,223 for the week ending September 9, 2023;
$4,841 for the week ending September 16, 2023;
$20,165 for the week ending September 23, 2023; and
$9,073 for the week ending September 30, 2023.
About JetASAP LLC
JetASAP, LLC acts as a conduit between a charter customer and a
certificated air carrier. It provides subscribers a full suite of
services to manage every step of the searching and sourcing
process. These tools include the JetRATE intelligent pricing tool
that offers flyers insight into expected market pricing for any
trip; the ability to submit trip requests to over 700 charter
operators and receive live bookable quotes commission free;
exclusive partner services at discounted rates such as Charter
Flight Support's aircraft coverage and support when a booked
aircraft becomes unavailable due to a mechanical; innovative search
tools such as the JetSEARCH operator directory; and live operator
availability, including empty legs and one way flight deals.
JetASAP filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. M.D. Fla. Case No. 23-03019) on July 27,
2023, with $29,093 in assets and $3,498,814 in liabilities. Lisa
Sayer, chief executive officer, signed the petition.
Judge Grace E. Robson oversees the case.
Jeffrey S. Ainsworth, Esq., at BransonLaw, PLLC represents the
Debtor as legal counsel.
JUUL LABS: Shareholder File Suit vs. Co. for Withholding Financials
-------------------------------------------------------------------
Rachel Butt of Bloomberg News reports that a top Juul Labs Inc.
shareholder is demanding e-cigarette maker produce financial
documents and settlement agreements as it seeks to raise new
financing, saying the company’s reluctance to do so could be
“designed to shield evidence of corporate wrongdoing.”
D1 Capital Partnersfiled a lawsuit in Delaware Chancery Court on
Monday, saying it is contractually entitled to examine the
company's books and records because it owns more than 1% of Juul's
shares. The fund alleges that Juul breached an investor agreement
by failing to provide documents D1 requested in April.
About Juul Labs Inc.
JUUL Labs, Inc., formerly known as Pax Labs, Inc., is an American
electronic cigarette company, with its principal place of business
in San Francisco, California.
Marlboro cigarette maker Altria Group Inc (MO.N) paid $12.8 billion
in 2018 for a 35% stake in Juul. Altria valued that stake at $450
million as of June 30, 2022.
Juul had been the market leader in e-cigarettes since 2018,
according to Euromonitor International. As of 2020, the company
held 54.7% share of the $9.38 billion U.S. e-vapor market.
On June 23, 2022, the U.S. Food and Drug Administration ordered
Juul to remove its e-cigarettes from the U.S. market effective
immediately, saying that Juul had failed to show the sale of its
products would be appropriate for public health.
The Columbia Circuit Court of Appeals on June 24, 2022, granted
Juul's emergency request for a stay, pending its appeal of the
decision. The FDA later said it was withholding the ban as it was
doing an additional review of the company's marketing application.
In July 2022, reports said that Juul was considering its options,
including bankruptcy, and reportedly hired Kirkland & Ellis and
Alvarez & Marsal, as well as bankers at Centerview Partners.
On Sept. 6, 2022, Juul agreed to pay $438.5 million to settle
claims by 34 U.S. states and territories over its marketing and
sales practices, including that it improperly courted teenage
buyers.
On Sept. 20, 2022, Juul Labs sued the FDA in a federal court in
Washington, D.C., over the agency's refusal to disclose documents
supporting its order banning the company from selling e-cigarettes.
The case is Juul Labs Inc v Food & Drug Administration, U.S.
District Court, District of Columbia, No. 22-02853.
KDP LLC: Unsecureds Recovery "TBD" in Liquidating Plan
------------------------------------------------------
KDP, LLC, et al., filed with the U.S. Bankruptcy Court for the
District of Delaware a Subchapter V Plan of Liquidation dated
August 21, 2023.
The Debtors are privately owned companies and consist of KDP LLC, a
Delaware Limited Liability Company ("KDP"), and its wholly owned
affiliate KDP Investment Advisors Inc., is a Delaware Corporation
("IA"), and affiliate KDP Asset Management Inc., a Delaware
Corporation ("AM").
Debtors are in the investment and financial advisory sector. KDP is
a holding company. IA is a leading independent provider of high
yield credit research and analysis, with services limited to
providing credit research and pricing on a subscription or
consulting basis. AM is registered as an investment adviser with
the Securities and Exchange Commission ("SEC").
Having closed the sale of substantially of the its assets to Obra
Institutional Credit, LLC, this plan will be funded through case
available in the estates of KDP, LLC, KDP Asset Management, Inc.
and KDP Investment Advisors, Inc.
Debtors' Assets were purchased by Obra and included the Debtors'
operating business entities, both IA and AM, their contracts with
existing clients, highly specialized workforce, and other
miscellaneous assets. Debtors' Assets included all material items
of equipment, furniture, fixtures and other items of tangible
personal property included in the Purchased Assets ("Tangible
Personal Property").
Following the sale to Obra, the Debtors' Assets are as follows: (1)
all Cash and Cash Equivalents held by Debtors after the closing;
(2) all contracts, agreements and undertakings of Debtors
(including, without limitation, all Benefit Plans and assets
attributable thereto), other than the Assumed Contracts; (3) the
corporate seals, organizational documents, minute books, tax
returns, books of account, or other records having to do with the
limited liability company and corporate organization of Debtors;
(4) the rights that accrue or will accrue to Debtors under the
Asset Purchase Agreement; and (5) any and all causes of action
against Debtors' officers and Directors, including Kingman
Penniman, and all causes of action under Chapter 5 of the
Bankruptcy Code (collectively, the "Retained Causes of Action").
The assets are available for distribution under this Plan are as
follows: 1) One Hundred Fifty Thousand Dollars; (2) all Cash and
Cash Equivalents held by Debtors after the closing of the sale of
their Assets; and (3) the Retained Causes of Action.
Class 2 consists of Priority unsecured claim. This Class shall be
paid in full on the Effective Date.
Class 3 consists of General Unsecured Claims. This Class shall be
paid in cash with amount to be determined. This Class is impaired.
Class 4 consists of Equity Interest holders. As of the Effective
Date, all Equity Interests shall be deemed void, cancelled, and of
no further force and effect. On and after the Effective Date,
Holders of Equity Interests shall not be entitled to, and shall not
receive or retain any property or interest in property under the
Plan on account of such Equity Interests. Class 4 is deemed to have
rejected the Plan and, therefore, Holders of Equity Interests are
not entitled to vote on the Plan.
The Debtors believe that the Debtors will have enough cash on hand
on the Effective Date of the Plan to pay all the Claims and
expenses that are entitled to be paid on that date. On the
Effective Date, the Debtors anticipate having approximately
$150,000.00 on hand.
A full-text copy of the Subchapter V Plan dated August 21, 2023 is
available at https://urlcurt.com/u?l=NaYidt from PacerMonitor.com
at no charge.
Counsel for the Debtors:
BIELLI & KLAUDER, LLC
David M. Klauder, Esq.
Melissa M. Hartlipp, Esq.
1204 N. King Street
Wilmington, DE 19801
Phone: (302) 803-4600
Email: dklauder@bk-legal.com
mhartlipp@bk-legal.com
About KDP LLC
KDP, LLC is an investment adviser registered with the SEC
specializing in the management of high yield bonds and leveraged
loans with a strong focus on rigorous, bottom-up credit analysis.
KDP and its affiliates, KDP Investment Advisors, Inc. and KDP Asset
Management, Inc., sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Lead Case No. 23-10662) on May 21,
2023. At the time of the filing, KDP disclosed $1 million to $10
million in both assets and liabilities.
Judge J. Kate Stickles oversees the case.
Bielli and Klauder, LLC represents the Debtor as legal counsel.
Obra Institutional Credit, LLC, as lender, is represented by Potter
Anderson & Corroon, LLP.
KNOW LABS: Incurs $3.6 Million Net Loss in Third Quarter
--------------------------------------------------------
Know Labs, Inc. filed with the Securities and Exchange Commission
its Quarterly Report on Form 10-Q disclosing a net loss of $3.60
million on $0 of revenue for the three months ended June 30, 2023,
compared to a net loss of $3 million on $0 of revenue for the three
months ended June 30, 2022.
For the nine months ended June 30, 2023, the Company reported a net
loss of $12.35 million on $0 of revenue compared to a net loss of
$14.50 million on $4.36 million of revenue for the nine months
ended June 30, 2022.
As of June 30, 2023, the Company had $4.44 million in total assets,
$3.72 million in total current liabilities, and $715,413 in total
stockholders' equity.
Know Labs said, "The Company has cash and cash equivalents of
$3,928,865 and net working capital of $715,213 ($2,970,479
exclusive of convertible notes payable) as of June 30, 2023. The
Company anticipates that it will record losses from operations for
the foreseeable future. During the end of the quarter ended March
31, 2023, the Company made some adjustments to its staffing level
and the impact of those adjustments, plus the departure of our
chief technology and executive office, has significantly reduced
our monthly burn rate. The Company will further adjust its cost
structure if new debt or equity capital is not received. The
Company's ability to transition profitable operations is dependent
upon achieving a level of revenues adequate to support its cost
structure. The Company believes that it has enough available cash
and flexibility with its operating expenses to operate until at
least December 31, 2023. Based on current operating levels, the
Company will need to raise additional funds by selling additional
equity or incurring debt. To date, the Company has funded its
operations primarily through issuance of equity securities, and
proceeds from the exercise of warrants to purchase common stock and
the sale of debt instruments. Additionally, future capital
requirements will depend on many factors, including the rate of
revenue growth, the selling price of the Company's products, the
expansion of sales and marketing activities, the timing and extent
of spending on research and development efforts and the continuing
market acceptance of the Company's products. These factors raise
substantial doubt about the Company's ability to continue as a
going concern for the twelve months from the date of this Report.
"Management of the Company intends to raise additional funds
through the issuance of equity securities or debt. The Company is
currently working on some capital fund raising transactions and
while they expect to have something finalized by September 30,
2023, as of this date, there is no commitment. There can be no
assurance that, in the event the Company requires additional
financing, such financing will be available at terms acceptable to
the Company, if at all. Failure to generate sufficient cash flows
from operations, raise additional capital and reduce discretionary
spending could have a material adverse effect on the Company's
ability to achieve its intended business objectives. As a result,
the substantial doubt about the Company's ability to continue as a
going concern has not been alleviated."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1074828/000165495423010781/knwn_10q.htm
About Know Labs Inc.
Know Labs, Inc. is focused on the development and commercialization
of proprietary biosensor technologies which, when paired with its
AI deep learning platform, are capable of uniquely identifying and
measuring almost any material or analyte using electromagnetic
energy to detect, record, identify and measure the unique
"signature" of said materials or analytes. Know Labs call this its
"Bio-RFID" technology platform, when pertaining to radio and
microwave spectroscopy, and its "ChromaID" technology platform,
when pertaining to optical spectroscopy. The data obtained with
the Company's biosensor technology is analyzed with its trade
secret algorithms which are driven by its AI deep learning
platform.
Know Labs reported a net loss of $20.07 million for the year ended
Sept. 30, 2022, a net loss of $25.36 million for the year ended
Sept. 30, 2021, a net loss of $13.56 million for the year ended
Sept. 30, 2020, and a net loss of $7.61 million for the year ended
Dec. 31, 2019.
KPG REVENUE: RCM-TO GO Unsecureds to Get 67% of Claims in Plan
--------------------------------------------------------------
KPG Revenue Cycle Management, Inc., and RCM-TO GO, LLC, filed with
the U.S. Bankruptcy Court for the District of Nevada a Joint Plan
of Reorganization for Small Business.
The Debtor's services encompass aiding major medical facilities in
the collection of healthcare data, which is pivotal for government
reporting and patient invoicing.
The advent of Covid-19 brought an abrupt halt to the Debtor's
ability to travel, thus effectively paralyzing all business
development activities and severing all potential new revenue
streams. As a result of this dwindling revenue source, the Debtor
exhausted all business reserves, including the personal reserves of
the Debtor's principal, making it difficult to fulfill its
obligations to creditors. With the passing of Covid-19, the Debtor
is once again able to offer its services, but a significant
rebuilding period for its client base is anticipated.
By filing a bankruptcy petition under Chapter 11 and proposing a
plan of reorganization, the Debtor expects a swift recovery.
Concurrently, the Debtor is exploring a potential joint venture
partnership that would assume the existing service contracts and
foster the development of new services. Through this planned
reorganization under Chapter 11 and the possible joint venture, the
Debtor aims to continue employing its specialized workforce and
provide critical revenue collection services to its extensive
client base.
The final Plan payment is expected to be paid on November 2028.
This Joint Plan of Reorganization proposes to pay creditors of the
Debtors from income from the operations of business.
Non-priority unsecured creditors holding allowed claims of KPG
Revenue Cycle Management will not receive distributions. Non
priority unsecured creditors holding allowed claims of RCM-TO GO,
LLC will receive distributions, which the proponent of this Plan
has valued at approximately .67 cents on the dollar. This Plan also
provides for the payment of administrative and priority claims.
Class 2 consists of Non-priority unsecured creditors of KPG Revenue
Cycle Management. There will not be a disbursement to the Unsecured
creditors of this class by KPG Revenue Cycle Management. Creditors
in this class include: US Small Business Administration (General
Unsecured portion bifurcated from class 1) ($316,200.00); Capital
One Spark ($17,629.00); Nevada State Bank ($47,018.00); and Zions
First National Bank ($10,571.54).
Class 3 consists of Non-priority unsecured creditors of RCM-TO GO,
LLC. Members of this class shall be paid on a pro-rata basis a
total disbursement of $73,721.21. Payments shall be disbursed by
RCM-TO GO, LLC starting on the effective date of the plan and
continuing for a term of 60 months at 0% interest.
Class 3 creditors include Athenahealth, Inc. ($0.00); Brevin
Systems LLC ($1,523.75); Brevin Systems LLC ($1,550.00); Chase Ink
Card ($10,149.00); Minntek ($16,989.00); OneCube Advisors, LLC
($16,116.56); Salesforce Inc ($3,078.00); Switch, LTD ($2,779.34);
Tech Vault, Inc ($2,950.00); and VVC Holdings, LLC ($54,896.00).
This Class will receive a distribution of 67% of their allowed
claims.
The Plan will be funded through the ongoing business operations of
the Debtor. The Debtor has reviewed its cash flow projections and
financial situation and believes it has, and will continue to have,
sufficient liquidity to operate its business and make the necessary
distributions under the Plan.
A full-text copy of the Joint Plan dated August 17, 2023 is
available at https://urlcurt.com/u?l=w39Zxs from PacerMonitor.com
at no charge.
Debtors' Counsel:
Ballstaedt Law Firm, LLC d/b/a Fair Fee Legal Services
Seth D. Ballstaedt, Esq.
8751 W Charleston Blvd #230
Las Vegas, NV 89117
Phone: (702) 715-0000
Email: help@bkvegas.com
About KPG Revenue
KPG Revenue Cycle Management, Inc., aides major medical facilities
in the collection of healthcare data, which is pivotal for
government reporting and patient invoicing.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. D. Nev. Case No. 23-12013) on May 19, 2023,
with as much as $50,000 in assets and $100,001 to $500,000 in
liabilities. Judge Mike K. Nakagawa oversees the case.
The Debtor is represented by Seth D. Ballstaedt, Esq., at Fair Fee
Legal Services.
L.O.L. COUNSELING: Taps C. Taylor Crockett as Legal Counsel
-----------------------------------------------------------
L.O.L. Counseling and Consulting Services, LLC seeks approval from
the U.S. Bankruptcy Court for the Northern District of Alabama to
employ C. Taylor Crockett, Esq., a practicing attorney in
Birmingham, Ala., to handle its Chapter 11 case.
Mr. Crockett will render these services:
(a) Advise the Debtor of its powers, and duties in the
continued management of its financial affairs and property;
(b) Prepare legal papers;
(c) Review all leases and other corporate papers, prepare
motions to assume unexpired leases or executory contracts, and
assist in the preparation of corporate authorizations and
resolutions regarding the Chapter 11 case; and
(d) Perform all other legal services for the Debtor.
Mr. Crockett will be paid at his hourly rate of $450. He also
received a retainer of $6,500, plus the filing fee of $1,800.
The attorney 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. Crockett can be reached at:
C. Taylor Crockett, Esq.
C. Taylor Crockett, PC
2067 Columbiana Road
Birmingham, AL 35216
Telephone: (205) 978-3550
Email: taylor@taylorcrockett.com
About L.O.L. Counseling and
Consulting Services
L.O.L. Counseling and Consulting Services, LLC filed a petition
under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. N.D.
Ala. Case No. 23-02007) on Aug. 3, 2023, with as much as $50,000 in
assets and liabilities.
Judge Tamara O. Mitchell oversees the case.
C. Taylor Crockett, Esq., a practicing attorney in Birmingham,
Ala., is the Debtor's bankruptcy counsel.
LA CROSSE TENT: Taps Pittman & Pittman Law Offices as Counsel
-------------------------------------------------------------
La Crosse Tent & Awning, Inc. seeks approval from the U.S.
Bankruptcy Court for the Western District of Wisconsin to employ
Pittman & Pittman Law Offices, LLC to serve as legal counsel in its
Chapter 11 case.
The firm's services include representation relating to actions by
creditors and the preparation of Chapter 11 plan, valuation motions
and other legal documents.
The firm will be paid at these rates:
Galen W. Pittman, Esq. $400 per hour
Greg P. Pittman, Esq. $300 per hour
Wade M. Pittman, Esq. $300 per hour
Paralegal $100 per hour
In addition, the firm will receive reimbursement for out-of-pocket
expenses incurred.
The Debtor paid the firm a retainer of $5,000.
Galen Pittman, Esq., a partner at Pittman & Pittman Law Offices,
disclosed in a court filing that he is a "disinterested person" as
the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Galen W. Pittman, Esq.
Pittman & Pittman Law Offices, LLC
712 Main Street
La Crosse, WI 54601
Tel: (608) 784-0841
Email: Info@PittmanandPittman.com
About La Crosse Tent & Awning
La Crosse Tent & Awning, Inc. filed Chapter 11 petition (Bankr.
W.D. Wisc. Case No. 23-11250) on July 24, 2023, with $100,001 to
$500,000 in assets and liabilities. Catherine J. Furay oversees the
case.
Galen W. Pittman, Esq., at Pittman & Pittman Law Offices, LLC
represents the Debtor as legal counsel.
LAMAR ADVERTISING: Egan-Jones Retains BB- Senior Unsecured Ratings
------------------------------------------------------------------
Egan-Jones Ratings Company on August 9, 2023, maintained its 'BB-'
foreign currency and local currency senior unsecured ratings on
debt issued by Lamar Advertising Company. EJR also withdraws rating
on commercial paper issued by the Company.
Headquartered in Baton Rouge, Louisiana, Lamar Advertising Company
owns and operates outdoor advertising structures in the United
States.
LINCOLN NATIONAL: Egan-Jones Retains BB+ Senior Unsecured Ratings
-----------------------------------------------------------------
Egan-Jones Ratings Company on August 2, 2023, maintained its 'BB+'
foreign currency and local currency senior unsecured ratings on
debt issued by Lincoln National Life Insurance Company. EJR also
withdraws rating on commercial paper issued by the Company.
Headquartered in Radnor, Pennsylvania, Lincoln National Life
Insurance Company provides insurance services.
LITTLE ROAD: Seeks to Hire Barbara Smith as Accountant
------------------------------------------------------
Little Road Co., LLC seeks approval from the U.S. Bankruptcy Court
for the District of Utah to employ Barbara Smith Accounting Inc.
CPA as its accountant.
Barbara Smith will assist the Debtor in all tax accounting matters
arising in its Chapter 11 case at the hourly rate of $200.
As disclosed in court filings, Barbara Smith is a "disinterested
person" pursuant to Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Barbara M. Smith, CPA
Barbara Smith Accounting Inc. CPA
2143 S 225 E
Kaysville, UT, 84037-9441
Phone: (801) 451-9889
About Little Road Co.
Little Road Co. is an online apparel store in Draper, Utah, which
offers a range of clothing for kids.
Little Road Co. filed its voluntary petition for Chapter 11
protection (Bankr. D. Utah Case No. 23-22020) on May 18, 2023, with
$50,000 to $100,000 in assets and $1 million to $10 million in
liabilities. Sydni Sorensen, managing member, signed the petition.
Judge Joel T. Marker oversees the case.
T. Edward Cundick, Esq., at Workman Nydegger serves as the Debtor's
legal counsel.
MANITOWOC COMPANY: Moody's Raises CFR & Senior Secured Debt to B2
-----------------------------------------------------------------
Moody's Investors Service upgraded The Manitowoc Company, Inc.'s
ratings, including the corporate family rating to B2 from B3,
probability of default rating to B2-PD from B3-PD, and senior
secured debt rating to B2 from B3. The outlook is stable. Moody's
also upgraded the company's speculative grade liquidity rating to
SGL-2 from SGL-3.
The upgrade of Manitowoc's ratings reflects the company's improved
operating performance highlighted by improvement in EBITDA margin
and a decline in financial leverage. Moody's expects Manitowoc's
profit margin will continue to trend favorably and debt-to-EBITDA
will approach 2.2 times in 2024.
Upgrades:
Issuer: Manitowoc Company, Inc. (The)
Corporate Family Rating, Upgraded to B2 from B3
Probability of Default Rating, Upgraded to B2-PD from B3-PD
Speculative Grade Liquidity Rating, Upgraded to SGL-2 from SGL-3
Senior Secured 2nd Lien Notes, Upgraded to B2 from B3
Outlook Actions:
Issuer: Manitowoc Company, Inc. (The)
Outlook, Remains Stable
RATINGS RATIONALE
Manitowoc has a well-established position as one of the world's
leading providers of heavy-duty cranes. However, the company has
concentration risk by operating solely in the crane segment,
exposing Manitowoc to highly cyclical end markets, including
construction and oil and gas. However, the company is deliberately
targeting growth in the higher margin and more stable aftermarket
parts and services and other non-new machine businesses via its
CRANES+50 strategy. This, together with a high backlog of over $1
billion to work down, will help mitigate some of the impact from
potential softness in new crane demand resulting from higher
pricing and rising interest rates.
Manitowoc had debt-to-LTM EBITDA of 2.5 times at June 30, 2023,
which has come down from over 4.5 times over the last few years.
Moody's views this level of leverage as more appropriate for the
company given the cyclicality of its end markets. Demand in the US
crane market is holding up well, as is demand in the Middle East,
but the European tower crane market has weakened. Also, the company
has been experiencing periodic supply chain challenges and
logistical constraints that have impacted shipments and increased
inventory levels. Manitowoc also has a legal overhang associated
with an EPA issue, the resolution of which could lead to material
cash outflows.
The stable outlook reflects Moody's expectation that Manitowoc will
grow the topline 5-7% over the next year while improving EBITDA
margin and maintaining debt-to-EBITDA below 2.5 times.
Manitowoc's SGL-2 speculative grade liquidity rating reflects
Moody's expectation the company will have good liquidity, supported
by positive free cash flow of roughly $50 million over the next
year, together with $25.9 million of cash at June 30, 2023 and $190
million of availability under a $275 million ABL facility that
expires in 2027. The ABL has a springing maturity date of December
30, 2025 if the company's $300 million senior secured second lien
notes have not been repaid in full or refinanced prior to that
date. The company also has no significant debt maturities until
April 1, 2026 when $300 million 9% second lien notes mature.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if debt-to-EBITDA is sustained below
3.0 times, owing to the potential for rapid changes in
profitability and cash flow due to the significant cyclicality of
the business, and EBITA margin is sustained above 7%. In addition,
the company would be expected to maintain good liquidity prior to a
rating upgrade.
The ratings could be downgraded if demand weakens considerably,
EBITA margin is sustained below 4%, or liquidity weakens
materially. In addition, the rating could be downgraded if there is
an adverse resolution to the EPA litigation matter in excess of the
current reserve.
The principal methodology used in these ratings was Manufacturing
published in September 2021.
The Manitowoc Company, Inc. (NYSE: MTW), headquartered in
Milwaukee, WI, was founded in 1902 and through its wholly-owned
subsidiaries, designs, manufactures, markets, and supports
comprehensive product lines of cranes. Crane types include mobile
hydraulic cranes, tower cranes, lattice-boom crawler cranes, and
boom trucks under the Aspen Equipment, Grove, Manitowoc, MGX
Equipment Services, National Crane, Potain, and Shuttlelift brand
names. The company has three reportable segments based on region,
including the Americas, Europe and Africa (EURAF) and Middle East
and Asia Pacific (MEAP).
MANITOWOC INC: Egan-Jones Retains BB- Senior Unsecured Ratings
--------------------------------------------------------------
Egan-Jones Ratings Company on August 4, 2023, maintained its 'BB-'
foreign currency and local currency senior unsecured ratings on
debt issued by Manitowoc Company, Inc. EJR also withdraws rating on
commercial paper issued by the Company.
Headquartered in Milwaukee, Wisconsin, Manitowoc Company, Inc. is a
diversified industrial manufacturer of cranes and related
products.
MASTERS III: Asset Sale Proceeds to Fund Plan
---------------------------------------------
Masters III LLC filed with the U.S. Bankruptcy Court for the
Southern District of Florida a Subchapter V Liquidating Plan dated
August 21, 2023.
Debtor is the operating entity for retail suntanning facilities.
Its principal, Stanley Olszewski, started opening outlets in 2008,
under Copper Tan USA LLC.
In 2014, the Debtor formed a sub entity known as Haley Ryan LLC, to
serve as the merchant account holder and for processing the
revenues from the business. Currently, the Debtor operates its 5
current locations. All of the equipment utilized by the debtors at
the locations are owned by debtor, but the market for used
suntanning equipment is limited.
The Debtor is proposing to sell all of its assets toward resolution
of its debt issues, and to discontinue its business operations. To
that end, it submits this Liquidating Plan. The stalking bidder in
this liquidating plan is Zoom Tan, Inc. The proceeds for the
purchase of the Debtor's assets will be funded from Zoom Tan's cash
on hand.
Class IV consists of General Unsecured Creditors. Unsecured
claimants will be paid all remaining Liquidating Sale Proceeds
proratedly represented by the proportional amount their claim
represents as to the total body of claims. This class is impaired.
Unsecured claims, including the disputed secured amounts, are
estimated to total $500,000.
The sole equity interest holder of the Debtor is Stanley Olszewski,
who will retain his interest but is impaired as there will be no
funds of benefit to him personally from the now liquidated debtor.
If the Plan of the Debtor is confirmed under section 1191(a) of the
Bankruptcy Code, the service of the trustee appointed under
Subchapter V of Chapter 11 in the case shall terminate when the
Plan has been substantially consummated. As such, the Debtor shall
make all payments under the Plan, including any deposits required
by the Plan to be distributed on confirmation.
If the Plan is confirmed under section 1191(b) of the Bankruptcy
Code, except as otherwise provided in the Plan or in the order
confirming the Plan, the Subchapter V Trustee shall make payments
to creditors under the Plan.
A full-text copy of the Subchapter V Plan dated August 21, 2023 is
available at https://urlcurt.com/u?l=0i9HHD from PacerMonitor.com
at no charge.
About Masters III LLC
Masters III, LLC, is the operating entity for retail suntanning
facilities.
The Debtor filed Chapter 11 petition (Bankr. S.D. Fla. Case No.
23-14750) on June 19, 2023, with $118,372 in assets and $1,072,897
in liabilities. Stanley Olszewski, managing member, signed the
petition.
Julianne Frank, Esq., at Julianne Frank, Atty at Law is the
Debtor's counsel.
MEP INFRASTRUCTURE: Court OKs Cash Collateral Access Thru Sept 20
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois,
Eastern Division, authorized MEP Infrastructure Solutions, Inc. to
use cash collateral on an interim basis in accordance with the
budget, with a 10% variance, through September 20, 2023.
As adequate protection to the U.S. Small Business Association;
BlueVine Inc.; Byz Funder NY LLC; NewCo Capital Group VI LLC;
CloudFund LLC; and Rocket Capital NY LLC, for the use of their
Collateral or cash collateral, the Lien Claimants are granted and
post-petition replacement liens, to the extent and with the same
priority as held pre-petition, in and to the cash collateral and
all post-petition property of the Debtor of the same type or kind
substantially equivalent to the pre-petition Collateral.
A further hearing on the matter is set for September 18 at 10 a.m.
A copy of the order is available at https://urlcurt.com/u?l=p4sfjj
from PacerMonitor.com.
About MEP Infrastructure
MEP Infrastructure Solutions, Inc. is a Chicago-based company that
provides architectural, engineering and related services.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. N.D. Ill. Case No. 23-08505) on June 28,
2023, with $1 million to $10 million in assets and liabilities.
Santos A. Torres, president, signed the petition.
Judge A. Benjamin Goldgar oversees the case.
Paul M. Bauch, Esq., at Bauch & Michaels, LLC is the Debtor's
counsel.
MERISOL VILLAGES: Taps Carl J. Kolb P.C. as Litigation Counsel
--------------------------------------------------------------
Merisol Villages, LLC seeks approval from the U.S. Bankruptcy Court
for the Southern District of Texas to hire Carl J. Kolb, P.C. as
its special litigation counsel.
The firm will represent the Debtor in the litigation against Sico,
Hoelscher & Harris, LLP, Roger H. Braugh, Jr., and Brantley White.
On June 30, 2022, Sico, Hoelscher & Harris, LLP, Roger H. Braugh,
Jr., and Brantley White (SHH Parties) filed their objection to the
application to hire a special counsel. The matters for which the
counsel sought the court's approval for employment have been fully
settled. A part of the settlement agreement included the SHH
parties' withdrawal of the objection. On Feb 17, 2023, the SHH
parties filed their withdrawal of objection.
The special counsel has agreed to reduce the $1 million contingent
fee to one-half of the amount in view of the fact that the time
required to secure a release of the conditional option, the
condition precedent to recovery of a fee, was less than was
anticipated and did not require extensive litigation.
The firm can be reached through:
Carl J. Kolb, Esq.
Carl J. Kolb, P.C.
501 Congress Ave., Ste. 150
P.O. Box 309
Austin, TX 78767
Tel: (737) 227-5573
926 Chulie Dr.
San Antonio, TX 78216
Tel: (210) 225-6666
Fax: (210) 225-2300
About Merisol Villages
Merisol Villages, LLC is a single asset real estate debtor (as
defined in 11 U.S.C. Section 101(51B)). It is the fee simple owner
of 25.559 acres located in Port Aransas, Texas, valued at $9.62
million.
Merisol Villages sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. S.D. Texas Case No. 22-20135) on May 31,
2022. In the petition filed by Charles J. Castor, Jr., sole
member, the Debtor listed assets and liabilities between $1 million
and $10 million.
Judge David R. Jones oversees the case.
Raymond Battaglia, Esq., at the Law Offices of Ray Battaglia, PLLC
is the Debtor's counsel.
MERIT TECHNOLOGY: Chapter 7 Trustee Seeks to Distribute Funds
-------------------------------------------------------------
Mark A. Weisbart, as Chapter 7 trustee for Merit Technology Inc.,
intends to conclude the case and distribute funds to allowed
claimants on or before the first quarter of 2024 in accordance with
the priorities and provisions of the U.S. Bankruptcy Code.
If you believe you are a creditor or preferred shareholder of the
Debtor and you have not previously been given notice of the
bankruptcy and deadline to file claims, filed a proof of claim or
proof of interest, then you should file a proof of claim in
accordance with Section 501 of the U.S. Bankruptcy Code on before
30 days following the date of the notice, Aug. 21, 2023. You may
access the necessary proof of claim form online at
https://ecf.txeb.uscourtsgov/b410.html or obtain such forms from
the bankruptcy clerk's office.
You may electronically file your proof of claim online at
https://txeb.uscourts.gov/electronic-proof-claim. The Bankruptcy
Court strongly encourages e-filing you proof of claim or proof of
interests, which is fast, free, and does not require a login or
password.
Claims may also be filed with the clerk of the United State
Bankruptcy Court for the Eastern District of Texas, 660 North
Central Expressway, Suite 300B, Plano, Texas 75074; Tel: (972)
504-1240.
Merit Technology Inc. provided technical support and computer
technical services to businesses around the Greater Denver Metro
area.
MIKU INC: Court OKs Cash Collateral Access, $1MM DIP Loan from W67
------------------------------------------------------------------
The U.S. Bankruptcy Court for the District of New Jersey authorized
Miku, Inc. to use cash collateral and obtain up to $1 million in
postpetition financing, on an interim basis.
The Debtor obtained secured, superpriority postpetition financing
from W67, LLC, which will be available in one or more advances. The
advances under a promissory note will be available no more
frequently than every two weeks, and will be used by the Borrower
solely to fund disbursements in amounts and for purposes consistent
with the budget. Unless otherwise agreed by the Lender in its sole
discretion, each Advance thereunder will be in a minimum amount of
$100,000 for the succeeding two-week period -- or, in the case of
the final Advance thereunder, to fund the Wind-Down Reserve in
connection with the closing of a sale of the Borrower's assets
approved by the Sale Order.
The DIP facility is due and payable through the earliest to occur
of:
(i) the Termination Date;
(ii) the occurrence of an Event of Default;
(iii) the date upon which a plan of reorganization or
liquidation is confirmed in the Bankruptcy Case;
(iv) the date upon which a sale transaction has been
consummated pursuant to a Sale Order entered in the Bankruptcy Case
approving the sale of all or a substantial portion of the
Borrower's assets; and
(v) September 18, 2023.
These events constitute an "Event of Default":
(a) If the Borrower fails to perform any obligations or
violates any of the covenants of the Note;
(b) If for any bi-weekly testing period of the Budget, (i) the
Borrower fails to achieve actual receipts of at least 90% of
projected receipts for such time period as set forth in the Budget,
or (ii) the Borrower's actual disbursements exceed 115% of the
projected disbursements in accordance with the Budget for any
one-week period or 110% in the aggregate for any consecutive
three-week period;
(c) If the Borrower fails or neglects to perform, keep, or
observe any deadline related to a Case Milestone; or
(d) If the Borrower fails or neglects to perform, keep, or
observe any other term, provision, condition, covenant or
agreement contained in the Note, in any of the Loan Documents, or
in any other present or future agreement between Borrower and
Lender, and, as to any such other term, provision, condition,
covenant or agreement that can be cured, has failed to cure the
same within 10 days after the occurrence thereof.
As of the Petition Date, the Debtor had outstanding secured debt
pursuant to an Amended and Restated Promissory Note and Security
Agreement, dated as of August 11, 2023, between the Debtor, as
borrower, and W67 LLC, as lender. As of August 14, 2023, the
aggregate outstanding principal and interest owed by the Debtor
under the Prepetition Lender Documents was approximately $3.031
million.
The Prepetition Obligations are secured by a security interest in
substantially all of the Debtor's assets.
The Debtor requires the use of cash collateral and the DIP Facility
to finance its operations, maintain business relationships, to pay
its employees, protect the value of its assets.
As adequate protection, the Prepetition Lender will be granted
valid and perfected replacement and additional security interests
in, and liens on all of the Debtor's right, title and interest in,
to and under all DIP Collateral. The Adequate Protection Liens are
valid, binding enforceable and fully perfected as of the date
thereof and subordinate and subject to (i) the DIP Liens, and (ii)
the Carve Out.
As further adequate protection of the Prepetition Lender's
interests with respect to outstanding obligations, the Prepetition
Lender is granted administrative claims against the Debtor's estate
under 11 U.S.C. sections 503 and 507(b) to the extent that the
Adequate Protection Liens do not adequately protect against any
diminution in the value of the Prepetition Lender's interests in
the Prepetition Lender Collateral.
The Carve Out means, collectively, the following fees and
expenses:
(i) All statutory fees required to be paid to the Clerk of the
Bankruptcy Court pursuant to 28 U.S.C. section 1930(a); and
(ii) (A) prior to the occurrence of the Maturity Date, the
aggregate amount of accrued and unpaid professional fees and
expenses of the Debtor retained by final order of the Court under
11 U.S.C. sections 327, 328, or 1103(a), to the extent such fees
and expenses are allowed and payable pursuant to a Court order and
the reimbursement of out-of-pocket expenses allowed by the
Bankruptcy Court incurred by the Subchapter V Trustee in the
performance of his or her duties, not to exceed the amounts set
forth in the Budget for the Case Professional or Subchapter V
Trustee Fees, plus (B) after the occurrence of the Maturity Date,
an amount not to exceed: (I) $30,000 in the aggregate for the
Debtor's professionals, and (II) $10,000 in the aggregate for the
Subchapter V Trustee, less (C) unapplied pre-petition retainers.
A final hearing on the matter is set for September 5, 2023 at 2
p.m.
A copy of the order is available at https://urlcurt.com/u?l=78WcUl
from PacerMonitor.com.
A copy of the DIP Credit Agreement is available at
https://urlcurt.com/u?l=wPDpIp from PacerMonitor.com.
The Debtor projects total disbursements, on a weekly basis, as
follows:
$178,811 for the week beginning August 21, 2023;
$196,214 for the week beginning August 28, 2023;
$125,000 for the week beginning September 4, 2023;
$63,500 for the week beginning September 11, 2023;
$53,811 for the week beginning September 18, 2023; and
$12,500 for the week beginning September 25, 2023.
The Lender may be reached at:
W67 LLC
c/o North Audley Street LLC
44 Skymeadow Drive
Stamford, CT 06903
Attention: Robert Wexler, Esq.
e-mail: rwexler@northaudley.com
The Lender is represented by:
Greenberg Traurig, LLP
One International Place, Suite 2000
Boston, MA 02110
Attention: Jeff M. Wolf, Esq.
Ari Newman, Esq.
E-mail: wolfj@gtlaw.com
newmanar@gtlaw.com
About Miku, Inc.
Miku, Inc. is engaged in the manufacturing of audio and video
equipment. The Debtor sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D.N.J. Case No. 23-17005) on August
14, 2023. In the petition signed by Johann Fernando, chief
executive officer, the Debtor disclosed $3,696,093 in assets and
$5,100,016 in liabilities.
Judge Christine M. Gravelle oversees the case.
Morris S. Bauer, Esq., Duanne Morris LLP, represents the Debtor as
legal counsel.
W67 LLC, as DIP Lender, is represented by Greenberg Traurig, LLP.
MINSHEW BROTHERS: Court OKs Cash Collateral Access Thru Aug 30
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of California
authorized Minshew Brothers Steel Construction, Inc. to use cash
collateral on an interim basis in accordance with the budget, with
a 15% variance, through August 30, 2023.
The Debtor requires the use of cash collateral to pay Cash expenses
identified in the Budget.
As previously reported by the Troubled Company Reporter, the
Debtor's business generated between $12.2 million-$16 million in
sales. In 2020, the Debtor continued to be profitable and had sales
of approximately $16.5 million. In 2021, due to the Covid-19
pandemic, although demand did not decrease, the cost of steel as a
raw material increased by approximately 40% thus making the
Debtor's existing construction contracts not profitable, resulting
in total reduced sales of approximately $9.915 million and a net
operating loss of approximately $6,million. In 2022, Debtor was
able to adjust its new construction contracts to the 10 increased
cost of steel, but was unable to meet its debt and tax obligations
resulting in the Internal Revenue Service levying the Debtor's bank
accounts.
The entities with interest in the cash collateral are the Internal
Revenue Service, Penske Truck Leasing Co., Konica with Interest in
Cash Minolta; Fox Capital Group LLC, National Funding, Suncoast
Collateral: Post-Tension, CA Department of Tax and Fee
Administration, Employment Development Department, Velocity Capital
Group, Forward Financial LLC, and Ford Motor Credit.
To provide the Secured Creditors adequate protection, the Secured
Creditors are granted a full replacement lien to the extent of any
diminution in value of collateral as a result of the Debtor's use
of cash collateral. The replacement lien would be on all
post-petition assets in the same prior and to the same extent and
validity as the Secured Creditors asserted their pre-petition
security interests.
A continued hearing on the matter is set for August 30 at 2 p.m.
A copy of the order is available at https://urlcurt.com/u?l=NIkRvrt
from PacerMonitor.com.
About Minshew Brothers Steel Construction
Minshew Brothers Steel Construction, Inc. is a steel construction
company in California. The Debtor sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. S.D. Cal. Case No. 23-02343)
on August 8, 2023. In the petition signed by Brian Johnson, chief
financial officer, the Debtor disclosed $2,338,022 in assets and
$7,335,511 in liabilities.
Michael Jay Berger, Esq., at LAW OFFICES OF MICHAEL JAY BERGER,
represents the Debtor as legal counsel.
MONTGOMERY REALTY: Wins Cash Collateral Access Thru Sept 5
----------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of California,
Oakland Division, authorized Montgomery Realty Group, LLC to use
cash collateral on an interim basis in accordance with the budget,
through September 5, 2023.
The Debtor is permitted to use cash collateral to fund the $3,000
retainer to Special Eviction Counsel.
As previously reported by the Troubled Company Reporter, the Debtor
requires the use of cash collateral to fund the operating expenses
of its property, which is a portion of a shopping center consisting
generally of large "big box" retailers on the periphery of the
Center, facing a central parking lot.
In 2018, the Debtor refinanced the Property and obtained mortgage
financing for the Property from Cathay Bank, with the mortgage to
mature in November 2023. Cathay Bank is the Debtor's sole secured
creditor holding a perfected security interest in the Debtor's
Property and its rental income, providing it with cash collateral
rights. During the months pre-petition, Cathay took actions which
had the effect of leading tenants to withhold their rent.
The court ruled that Cathay is granted a replacement lien against
its post-petition assets. The Replacement Lien will be perfected
and enforceable without the need for Cathay Bank or the Debtor to
take any further action, but it will be subject to further Court
orders. The Replacement Lien will have the same nature, extent,
validity and priority, and be subject to the same defenses and
offsetting claims, if any, as Cathay Bank's prepetition lien.
In September, the Debtor will pay non-default interest to Cathay
Bank in the amount set forth in the budget. No other disbursement
of Jo Ann's Rent will be authorized in September, 2023 absent (a)
the written authorization of Cathay Bank, or (b) an Order of the
Court, which may be obtained on shortened time.
A copy of the court's order and the Debtor's budget is available at
https://urlcurt.com/u?l=fIK6co from PacerMonitor.com.
The Debtor projects $98,163 in total income and $336,294 in total
expenses.
About Montgomery Realty Group, LLC
Montgomery Realty Group, LLC is the owner of the commercial real
property located at 1675 Willow Pass Road, Concord, California.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Cal. Case No. 22-41290) on December
20, 2022. In the petition signed by Raj Maniar, manager, the Debtor
disclosed up to $50 million in both assets and liabilities.
Judge William J. Lafferty, III oversees the case.
Michael St. James, Esq., at St. James Law, P.C, is the Debtor's
legal counsel.
NABOO ROYAL: Case Summary & Five Unsecured Creditors
----------------------------------------------------
Debtor: Naboo Royal Cruiser, LLC
7270 NW 12th Street
Suite 760
Miami, FL 33126
Business Description: The Debtor is engaged in commercial and
industrial machinery and equipment rental
and leasing.
Chapter 11 Petition Date: August 23, 2023
Court: United States Bankruptcy Court
Eastern District of Florida
Case No.: 23-16725
Debtor's Counsel: Brett Lieberman, Esq.
EDELBOIM LIEBERMAN REVAH PLLC
20200 W. Dixie Hwy
Suite 905
Miami, FL 33180
Tel: 305-768-9909
Email: brett@elrolaw.com
Total Assets: $3,309,228
Total Liabilities: $7,483,300
The petition was signed by Eugene Kesselman as CEO of Managing
Member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's five unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/ALD6YFA/Naboo_Royal_Cruiser_LLC__flsbke-23-16725__0001.0.pdf?mcid=tGE4TAMA
NASHVILLE SENIOR CARE: Court OKs $2.85MM DIP Loan from UMB Bank
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Tennessee,
Nashville Division, authorized Nashville Senior Care, LLC and
affiliates to use cash collateral and obtain postpetition
financing, on an interim basis.
The Debtors have requested that UMB Bank, N.A. provide Initial DIP
Loans of up to an aggregate amount of $2.85 million, which amount
includes $1.350 million advanced in connection with a Bridge Loan.
The funds will be used by the Debtors solely to the extent provided
in the Budget. At the expiration of the Interim Order, the DIP
Lender, subject to entry of the Final Order in a form acceptable to
the DIP Lender, will continue to advance funds through additional
DIP loans up to an aggregate amount of up to $5.35 million.
The Initial DIP Loan is conditioned upon the grant of a lien that:
(i) will prime and remain senior to the Trustee's Pre-Petition
Liens; and (ii) will otherwise constitute a first priority lien in
all Post-Petition Collateral, subject only to the Carve-Out and
valid and perfected liens existing on or arising after the Petition
Date which, solely by operation of law, have priority over the
Post-Petition Liens.
The Debtors are required to comply with these milestones:
(i) On Tuesday of each week (or such other day as may be
agreed upon by the Parties), the Debtors will make available
representatives reasonably acceptable to the DIP Lender and the
Trustee for a telephone conference call with the DIP Lender, the
Trustee, holders of the Bonds who have executed a confidentiality
agreement with the Debtors, and their respective agents, advisors
and/or representatives to discuss the cash flows and operations of
the Facilities, including the Debtors' compliance with the Budget,
the status of the sale process with respect to the sale of
substantially all of the Debtors' assets, and such other matters as
are relevant or are reasonably requested by the DIP Lender and the
Trustee;
(ii) On the Petition Date, the Debtors will file a bid
procedures and sale motion, in form and substance reasonably
acceptable to the Trustee, with respect to a sale of substantially
all of the Debtors' assets;
(iii) On or before September 14, 2023, an order on the bid
procedures and sale motion, in form and substance reasonably
acceptable to the Trustee, will be entered;
(iv) Each sale milestone set forth in any Bid Procedures Order
will constitute a Bankruptcy Milestone for purposes of the Interim
Order; and
(v) On or before September 14, 2023, the Final Order on the
Motion will be entered.
The Debtors admit, stipulate, and agree that each of the Debtors is
an Obligated Group Member. The Debtors admit, stipulate, and agree
that the Obligated Group Members are obligated to UMB Bank, N.A.,
as successor bond trustee, for the benefit of the beneficial
holders of the following series of revenue bonds: (i) Highlands
County Health Facilities Authority (Florida) Senior Living Revenue
Bonds (Trousdale Foundation Properties), Senior Series 2018A and
Subordinate Series 2018B-2; (ii) County of Montgomery, Ohio Senior
Living Revenue Bonds (Trousdale Foundation Properties), Senior
Series 2018A and Subordinate Series 2018B-2; (iii) The Health and
Educational Facilities Board of the Metropolitan Government of
Nashville and Davidson County, Tennessee Senior Living Revenue
Bonds (Trousdale Foundation Properties), Senior Series 2018A and
Subordinate Series 2018B-1 and 2018B-2.
The Bonds were issued pursuant to (i) with respect to the Florida
Bonds, the Bond Trust Indenture dated as of September 1, 2018,
between Highlands County Health Facilities Authority and the Bond
Trustee; (ii) with respect to the Ohio Bonds, the Bond Trust
Indenture dated as of September 1, 2018, between County of
Montgomery, Ohio and the Bond Trustee; (iii) with respect to the
Tennessee Bonds, the Bond Trust Indenture dated as of September 1,
2018, between The Health and Educational Facilities Board of the
Metropolitan Government of Nashville and Davidson County, Tennessee
and the Bond Trustee; and (iv) with respect to the Corporate
Taxable Bonds, the Taxable Bond Indenture dated as of September 1,
2018, between Trousdale Issuer, LLC and the Bond Trustee.
The Debtors admit that as of the Petition Date, the amounts due and
owing by the Obligated Group Members with respect to the Bonds and
the obligations under the Bond Documents are as follows:
(i) Unpaid principal on the Bonds in the aggregate amount of
$190.1 million, consisting of $39.470 million in principal amount
of Florida Bonds, $74.4 million in principal amount of Ohio Bonds,
$65.3 million in principal amount of Tennessee Bonds, and $10.930
million in principal amount of Corporate Taxable Bonds;
(ii) Accrued but unpaid interest on the Bonds in the aggregate
amount, as of August 1, 2023, of $22.773 million, consisting of
$4.5 million in accrued interest on the Florida Bonds, $9.2 million
in accrued interest on the Ohio Bonds, $8 million in accrued
interest on the Tennessee Bonds, and $1.302 million in accrued
interest on the Corporate Taxable Bonds; and
(iii) Unliquidated, accrued and unpaid fees and expenses of the
Trustee and its professionals incurred through the Petition Date.
Such amounts, when liquidated, will be added to the aggregate
amount of the Bond Claim.
Prior to the Petition Date, the Debtors experienced an acute
liquidity crisis by which they required sufficient funds in order
to operate in the weeks leading up to filing the Chapter 11 Cases.
The Debtors approached the Trustee on behalf of the holders of the
Bonds and requested an emergency loan sufficient to fund the acute
liquidity needs of the Debtors with respect to the period from July
12, 2023 through the Petition Date. The Trustee agreed to provide
an emergency loan in the aggregate amount of up to $1.350 million
to bridge the Debtors into an orderly commencement of the Chapter
11 Cases. The Bridge Loan is evidenced by the Agreement to Advance
dated as of July 12, 2023, as the same has been or may be amended,
amended or restated, or otherwise modified from time to time, in
the aggregate amount of $1.350 million.
As adequate protection solely for any diminution in the value of
the Pre-Petition Collateral, the Trustee will continue to have
valid, binding, enforceable and perfected additional and
replacement mortgages, pledges, liens and security interests in all
Post-Petition Collateral and the proceeds, rents, products and
profits therefrom, whether acquired or arising before or after the
Petition Date, to the same extent, priority and validity that
existed as of the Petition Date.
As additional adequate protection, the Trustee will have a valid,
perfected and enforceable continuing supplemental lien on, and
security interest in, all of the assets of the Debtors.
As additional adequate protection solely for any Diminution, the
Trustee will receive a superpriority expense claim allowed under 11
U.S.C. section 507(b) of the Bankruptcy Code against all assets of
the Debtors' estates.
The events that constitute an "Event of Default" includes:
(i) The failure to make payments on the DIP Loans (including
interest payments) or amounts due under the DIP Credit Agreement as
and when due;
(ii) The failure of the Debtors to pay all of their
administrative expenses in full in accordance with and subject to
the terms as provided for in the Budget;
(iii) The Interim Order becomes stayed, reversed, vacated,
amended or otherwise modified in any respect without the prior
written consent of the DIP Lender and the Trustee, except by the
Final Order;
(iv) Failure to meet any of the Bankruptcy Milestones or other
covenants set forth in the Interim Order; and
(v) The Bid Procedures Order becomes stayed, reversed,
vacated, amended or otherwise modified in any respect without the
prior written consent of the Trustee and the DIP Lender.
The Debtors will no longer, pursuant to the Interim Order or
otherwise, be authorized to borrow funds and/or use cash collateral
for any purpose thereunder upon the earliest of (i) the occurrence
of an Event of Default or (ii) the Maturity Date; provided,
however, that the DIP Lender and/or Trustee will provide five
business days written notice via email to counsel to the Debtors,
the United States Trustee, and counsel to any Committee of any
Event of Default and the Debtors may continue to use cash
collateral pursuant to the Budget for five business days after
receipt of such Default Notice while the Debtors or any Committee
seeks an expedited hearing to contest whether an Event of Default
has occurred, and the DIP Lender and the Trustee consent to the
holding of such an expedited hearing within five business days of
such a filing.
A further hearing on the matter is set for September 11, 2023 at
9:30 a.m.
A copy of the Court's order and the Debtor's budget is available at
https://urlcurt.com/u?l=9Z6p3x from PacerMonitor.com.
The Debtor projects total disbursements, on a weekly basis, as
follows:
$1,368,282 for the week starting August 21, 2023;
$1,384,821 for the week starting August 28, 2023;
$1,282,224 for the week starting September 4, 2023;
$1,001,534 for the week starting September 11, 2023;
$1,370,394 for the week starting September 18, 2023; and
$1,408,231 for the week starting September 25, 2023.
About Nashville Senior Care, LLC
Nashville Senior Care, LLC and affiliates are comprised of five
senior living communities and one Medicare-certified home health
agency affiliated with the Trousdale Foundation. All of the real
estate associated with the senior living communities is owned by
the Debtors.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Tenn. Lead Case No. 23-02924) on
August 14, 2023. In the petition signed by Thomas Johnson,
executive director, the Debtor disclosed up to $100 million in
assets and up to $500 million in liabilities.
Judge Marian F. Harrison oversees the case.
The Debtors tapped MCDONALD HOPKINS LLC as general bankruptcy
counsel, EMERGELAW, PLC as co-counsel, HOULIHAN LOKEY CAPITAL, INC.
as investment banker, and STRETTO, INC. as notice, claims and
balloting agent.
NATHAN'S FAMOUS: Egan-Jones Retains BB+ Senior Unsecured Ratings
----------------------------------------------------------------
Egan-Jones Ratings Company on August 10, 2023, maintained its 'BB+'
foreign currency and local currency senior unsecured ratings on
debt issued by Nathan's Famous, Inc. EJR also withdraws rating on
commercial paper issued by the Company.
Headquartered in Jericho, New York, Nathan's Famous, Inc. is an
American company that operates a chain of fast-food restaurants
specializing in hot dogs.
NATURE COAST: Amends Several Secured Claims Pay Details
-------------------------------------------------------
Nature Coast Development Group, LLC, submitted a Second Amended
Disclosure Statement describing Amended Plan of Reorganization
dated August 21, 2023.
The Plan is a 100% payment plan. All Claims against the Debtor
shall be classified and treated pursuant to the terms of the Plan.
The Plan generally contemplates paying Holders of Allowed Claims in
full from: (i) the turnover of certain funds being held by Seacoast
Bank, (ii) DIP financing, (iii) exit financing, (iv) proceeds
derived from the Debtor's pursuit of Causes of Action, and (v) the
Debtor's business operations once the Debtor's Hotel is completed
and a certificate of occupancy is issued by the State of Florida.
The Plan also provides that the Debtor's existing membership and
equity interests will retain their same interest as on the Petition
Date.
The Plan designates 5 Classes of Claims and Interests. There are 3
Classes of Secured Claims; 1 Class of Unsecured Claims, and 1 Class
of Equity Interests. The Plan provides the respective Holders of
Allowed Administrative Claims, Allowed Priority Claims, and Allowed
Priority Tax Claims, if any, will be paid in full on the Effective
Date or in accordance with the treatment specified herein.
Class 1 consists of the Allowed Secured Claim of the Gilchrist
County Tax Collector. In full satisfaction of the Allowed Class 1
Claim, the Tax Collector shall retain its lien against its
Collateral to the same extent, priority, and validity as of the
Petition Date, and shall receive payments, based on a 25-year
amortization, at the statutory rate commencing on the Effective
Date until the Debtor receives a certificate of occupation for its
Hotel. Upon receipt of such certificate of occupation, the Tax
Collector shall receive the value of its Allowed Claim from the
Debtor's exit financing.
Class 2 consists of the Allowed Secured Claim of Seacoast National
Bank against the Debtor. In full satisfaction of its Allowed Class
2 Claim, Seacoast shall retain its lien, but subordinate to the
outstanding DIP Loan as to the Hotel parcel but retain to the same
extent, priority and validity as to the remaining Seacoast
Collateral, and Villasis, LLC, as well as any existing guarantor,
will re-affirm any guarantee related to Seacoast's Allowed Secured
Claim. On the Effective Date, the Debtor shall make payments on the
balance of Seacoast's Allowed Secured Claim at the existing
contractual rate of interest, amortized based on a 25-year
amortization with a balloon payment occurring within 18 months or
when a Certificate of Occupancy is issued for the Debtor's Hotel,
whichever comes first. Seacoast shall receive the value of its
Allowed Secured Claim from the Debtor's exit financing, and
non-Debtor funds, if necessary.
Class 3 consists of the Allowed Secured Claim of the United States
Specialty Insurance Co. against the Debtor. In full satisfaction of
its Allowed Class 3 Claim, Specialty shall retain its lien against
the Debtor, but subordinate to the DIP Loan as well as the Class 1
and Class 2 Claim, and shall receive payments based on Prime plus
1% variable interest rate and a 25-year amortization on the
Effective Date until the Debtor receives a certificate of
occupation for its Hotel. Upon receipt of such certificate of
occupation, Specialty shall receive the value of its Allowed Claim
from the Debtor's exit financing, and non-Debtor funds, if
necessary.
Like in the prior iteration of the Plan, Class 4 General Unsecured
Creditors shall be repaid in full based on equal monthly payments
over 12 months. Payments shall commence on the Effective Date.
Class 4 is Impaired.
The Plan contemplates the Debtor will begin operations
approximately 18 months after the Effective Date. The Debtor has
engaged Blankenship Consulting, LLC to complete construction of the
Hotel. The Hotel structure, as it stands, is sound and can
withstand outside weather conditions until fully built. Once the
Hotel is completed, Debtor will generate funds from its guest
rooms, restaurants, wedding venue, and other amenities.
Debtor plans to obtain both DIP financing to fund construction of
the Hotel and exit financing to payoff the DIP financer and Classes
1-4. It is anticipated that Debtor's operations will be sufficient
to make payments to the exit financing company and for general
hotel operations. Revenue projections for Debtor's completed Hotel,
prepared by Chris A. Chesebrough from Millennium Hospitality
Management Group.
A full-text copy of the Second Amended Disclosure Statement dated
August 21, 2023 is available at https://urlcurt.com/u?l=z9Ehpv from
PacerMonitor.com at no charge.
Counsel for the Debtor:
Justin M. Luna, Esq.
Benjamin R. Taylor, Esq.
LATHAM, LUNA, EDEN & BEAUDINE, LLP
201 South Orange Ave., Suite 1400
Orlando, FL 32801
About Nature Coast Development Group
Nature Coast Development Group, LLC, a company in Fanning Springs,
Fla., filed a petition for relief under Subchapter V of Chapter 11
of the Bankruptcy Code (Bankr. N.D. Fla. Case No. 22-10200) on Dec.
14, 2022. In the petition filed by its managing member, Marites
Padot, the Debtor reported assets between $10 million and $50
million and liabilities between $1 million and $10 million. Jodi D.
Dubose has been appointed as Subchapter V trustee.
Judge Karen K Specie oversees the case.
The Debtor is represented by Latham, Shuker, Eden, & Beaudine, LLP.
NELKIN & NELKIN: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: Nelkin & Nelkin P.C.
7702 Portal Drive
Houston TX 77071
Chapter 11 Petition Date: August 25, 2023
Court: United States Bankruptcy Court
Southern District of Texas
Case No.: 23-20245
Judge: Hon. David R. Jones
Debtor's Counsel: Miriam Goot, Esq.
WALKER & PATTERSON, P.C.
P.O. Box 61301
Houston TX 77208
Tel: (713) 956-5577
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Carol Nelkin as president.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/KSXGHSI/Nelkin__Nelkin_PC__txsbke-23-20245__0001.0.pdf?mcid=tGE4TAMA
NETFOR INC: Court OKs Cash Collateral Access on Final Basis
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Indiana,
Indianapolis Division, authorized Netfor, Inc. to use cash
collateral on a final basis in accordance with the budget, with a
10% variance.
The Debtor contends it requires use of cash collateral to continue
to operate its business and to attempt a successful reorganization
pursuant to the provisions of Chapter 11 of the Bankruptcy Code.
As previously reported by the Troubled Company Reporter, the Debtor
represented that Indiana Community Business Credit Corporation, 1st
Merchants Bank and Can Cap extended credit to the Debtor that is
secured by a blanket lien on substantially all of its property. All
three appear to be fully secured.
The Debtor represented that it is indebted to the Secured Creditor
in total approximately $300,000, plus accrued and unpaid interest
and other charges as provided in the Loan Documents.
The Debtor contends the Secured Creditors have valid and
enforceable security interests and liens in all of the Debtor's
assets, including but not limited to the Debtor's cash collateral.
Pursuant to Sections 363(e) and 361 of the Bankruptcy Code, the
Secured Creditors will be granted replacement liens in the cash
collateral and in the post-petition property of the Debtor of the
same nature and extent, and in the same priority held in the cash
collateral on the Petition Date. The Adequate Protection Liens will
be valid and fully perfected without any further action by any
party and without the execution or the recordation of any control
agreements, financing statements, security agreements, or other
documents. The Adequate Protection Liens will secure obligations to
the Secured Creditors to the extent the Debtor's use of the cash
collateral diminishes the amount of the Collateral held as of the
Petition Date. In addition, the Debtor will make regularly
scheduled payments to the Secured Creditors as required by the
applicable agreement with each secured creditor during the interim
period and pending final approval of the Motion.
Unless extended by the Court upon the written agreement of the
Debtor and the Secured Creditors, the Cash Collateral Order and the
Debtor's authorization will immediately terminate on the earlier to
occur of the date on which any creditor provides, via facsimile,
e-mail or overnight mail, written notice to the Debtor or the
Debtor's counsel, of the occurence of an Event of Default, and the
expiration of a five business day cure period.
These events constitute an Event of Default:
(i) A trustee or examiner is appointed in the Chapter 11
case;
(ii) The Debtor's Chapter 11 case is converted to a Chapter 7
case or dismissed;
(iii) The Debtor fails to comply with any term of the Order,
including but not limited to its payment obligations pursuant to
the applicable agreement with each secured creditor and compliance
with the Budget;
(iv) The Debtor makes any payment not set forth in the Budget;
(v) The Debtor fails to comply with any of the adequate
protection or reporting obligations set forth therein.
A copy of the order is available at https://urlcurt.com/u?l=aEXYrG
from PacerMonitor.com.
About Netfor, Inc.
Netfor, Inc. is a BPO company in Fishers, Indiana. The company's
help desk, call center, and fulfillment services round out its
ability to solve tech problems for its clients.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Ind. Case No. 23-02666) on June 22,
2023. In the petition signed by Jeffrey D. Medley as president/CEO,
the Debtor disclosed up to $10 million in assets and up to $1
million in liabilities.
Judge Jeffrey J. Graham oversees the case.
KC Cohen, Esq., at KC Cohen, Lawyer, PC, represents the Debtor as
legal counsel.
NGL ENERGY: Moody's Affirms 'B3' CFR & Alters Outlook to Positive
-----------------------------------------------------------------
Moody's Investors Service changed NGL Energy Partners LP's (NGLEP)
rating outlook to positive from negative. Moody's concurrently
affirmed the company's B3 corporate family rating, B3-PD
probability of default rating, and Caa2 senior unsecured notes. The
speculative grade liquidity rating (SGL) was upgraded to SGL-3 from
SGL-4. Moody's also affirmed NGL Energy Operating LLC's B2 senior
secured first lien notes and changed its outlook to positive from
negative.
"The positive outlook reflects NGLEP's commitment to continued debt
reduction and Moody's expectation of steady operational execution
through 2024 that should reduce financial leverage and enable
extension or repayment of future debt maturities," said Sajjad
Alam, Moody's Vice President.
Affirmations:
Issuer: NGL Energy Partners LP
Corporate Family Rating, Affirmed B3
Probability of Default Rating, Affirmed B3-PD
Senior Unsecured Notes, Affirmed Caa2
Issuer: NGL Energy Operating LLC
Senior Secured 1st Lien Notes, Affirmed B2
Upgrades:
Issuer: NGL Energy Partners LP
Speculative Grade Liquidity Rating, Upgraded to SGL-3 from SGL-4
Outlook Actions:
Issuer: NGL Energy Operating LLC
Outlook, Changed To Positive From Negative
Issuer: NGL Energy Partners LP
Outlook, Changed To Positive From Negative
RATINGS RATIONALE
NGLEP's B3 CFR is restrained by its high debt load and the
associated interest costs, large debt maturities through 2026,
complex capital structure that includes significant secured debt
and high-coupon cumulative preferred stocks, and the company's
prior history of aggressive financial policies. The rating also
reflects the inherent volatility and seasonality in NGLEP's working
capital requirements and the high volumetric risks across all its
business segments. NGL's businesses have performed more
consistently in recent quarters leading to increasing free cash
flow generation and meaningful debt reduction in 2023. Management
has set debt reduction as the top strategic priority with a goal to
dedicate substantially all near term free cash flow towards debt
reduction. With additional deleveraging, NGLEP will be better
positioned in 2024 to refinance its debt maturities and address the
accumulating preferred dividends. NGLEP's primary strengths include
its significant scale, diversified midstream operations across
several key US hydrocarbon basins, fee-based business model, and
large and growing water solutions business in the Delaware Basin.
The rating outlook is positive, reflecting Moody's expectation of
steady operational execution and continued debt reduction that
should reduce financial leverage and enable extension or repayment
of future debt maturities.
The improved SGL-3 rating incorporates NGLEP's reduced near term
refinancing risk and more credible free cash flow outlook. Moody's
expects the company to generate at least $300 million in annual
free cash flow over the next few years before distributions. As of
June 30, 2023, the company had $8 million in cash and significant
borrowing capacity under its $600 million ABL facility after
excluding $180.0 million of outstanding borrowings and $142 million
of letters of credit outstanding on the ABL. Moody's expects the
company to reduce its ABL borrowings over time and comply with the
financial covenants in the credit agreement through 2024. With a
goal to further reduce leverage, management plans to redeem the
remaining $281 million principal balance on the 2025 notes by March
31, 2024 using free cash flow and asset sales proceeds. NGLEP will
have the right to redeem all or a portion of the outstanding 2026
notes ($320 million principal outstanding) at par plus accrued
interest starting April 15, 2024. The ABL expires at the earliest
of (a) February 4, 2026 or (b) 91 days prior to the earliest
maturity date in respect to any of NGLEP's indebtedness in an
aggregate principal amount of $50.0 million or greater.
Consequently, the company will need to reduce the 2025 notes
balance below $50 million to avoid triggering a potential early ABL
maturity in late-2024.
The secured notes are rated B2, one notch above the B3 CFR.
Moody's views the B2 rating as more appropriate than the lower
rating suggested by Moody's Loss Given Default methodology based on
the positive outlook for the CFR and the likelihood that the
secured notes rating will likely converge with the CFR as the
proportion of unsecured debt continues to decline with the
projected repayments as reflected in the positive outlook.
Therefore, if the company executes on its deleveraging plan and the
CFR is upgraded to B2, the secured notes rating is likely to remain
B2. The unsecured notes are rated Caa2, two notches below the CFR
given the high proportion of secured debt in NGLEP's capital
structure and that notching differential to the CFR is likely to be
sustained as the company reduces the proportion of unsecured debt
in the capital structure.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if NGLEP materially reduces debt and
financial leverage, sufficiently addresses the repayment or
refinancing risks involving its 2025 and 2026 notes and delivers
consistent free cash flow in a stable to improving market. The
ratings could be downgraded if the company is unable to resolve its
maturity issues in a timely manner or its liquidity situation
weakens materially. The rating could also be downgraded if the
EBITDA/interest ratio cannot be sustained above 2.5x.
NGL Energy Partners LP is a diversified midstream Master Limited
Partnership headquartered in Tulsa, Oklahoma.
The principal methodology used in these ratings was Midstream
Energy published in February 2022.
NORMAN REALTY: Case Summary & 11 Unsecured Creditors
----------------------------------------------------
Debtor: Norman Realty and Construction Corp.
582 Scarborough Road
Briarcliff Manor, NY 10510
Business Description: The Debtor is the owner of real property
located at 151 East 170th Street, a/k/a
151-159 East 170th Street, a/k/a 1402-406
Wythe Place in Bronx, NY valued at $50
million. This valuation is based upon the
completion of the property's buildout, which
is projected to have 94 residential units,
a parking garage with 47 parking spaces and
commercial spaces on the ground floor.
Chapter 11 Petition Date: August 25, 2023
Court: United States Bankruptcy Court
Southern District of New York
Case No.: 23-22631
Debtor's Counsel: Jacqulyn S. Loftin, Esq.
LAMONICA HERBST & MANISCALCO, LLP
3305 Jerusalem Avenue, Suite 201
Wantagh, NY 11793
Tel: 516-826-6500
Email: jsl@lhmlawfirm.com
Total Assets: $50,446,308
Total Liabilities: $13,755,296
The petition was signed by Linda Mason as vice president.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/CEOPT3A/Norman_Realty_and_Construction__nysbke-23-22631__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's 11 Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. ChickLease LLC $5,904
c/o Gurstel Law Firm, PC
1275 E. Fort Union
Blvd Suite
Midvale, UT 84047
2. Craig A. Saunders, Esq. Professional $12,500
Munzer & Saunders, LLP Fees
2 Park Ave, 20th Floor
New York, NY 10016
Craig A. Saunders, Esq.
Tel: 212-221-3978
3. Environmental Control Board $0
66 John Street, #10
New York, NY 10038
4. Internal Revenue Service $0
PO Box 7346
Philadelphia, PA 19104
5. Joe Galle, CPA Professional $10,881
427 Manville Road Fees
Pleasantville, NY
10570
Tel: 914-747-5005
6. Julio Perez $24,000
137 Avon Place
New Milford, NJ
07646
7. New York City Water Board $49,370
Dept of Environmental Protect
59-17 Junction Blvd
8th Floor
Elmhurst, NY 11373
8. NYC Department of Finance Property Tax $543,433
66 John Street,
2nd Fl, R 104
New York, NY 10038
9. NYS Dept of Taxation & $0
Finance
Bankruptcy Unit
PO Box 5300
Albany, NY
12205-5300
10. SRAA+E Professional $101,000
Engineering, PC Fees
511 Canal Street,
Suite 300
New York, NY 10013
11. Water Waste $8,206
Prevention Co Inc.
82 Nassau Street
#613
New York, NY 10038
NORTHFACE LEASE: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: Northface Lease LLC
800 Dierking Terrace
Elk Grove Village, IL 60007
Case No.: 23-11238
Chapter 11 Petition Date: August 25, 2023
Court: United States Bankruptcy Court
Northern District of Illinois
Debtor's Counsel: Saulius Modestas, Esq.
MODESTAS LAW OFFICES, P.C.
401 S. Frontage Rd.
Ste. C
Burr Ridge, IL 60527-7115
Tel: 312-251-4460
Fax: 312-277-2586
Email: smodestas@modestaslaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Marcin Pogorzelski as managing member.
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/3JP3A3I/Northface_Lease_LLC__ilnbke-23-11238__0001.0.pdf?mcid=tGE4TAMA
NOTTINGHAM ACADEMY: Court OKs Cash Collateral Access Thru Sept 30
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Maryland, Baltimore
Division, authorized West Nottingham Academy in Cecil County to use
cash collateral on an interim basis in accordance with the budget,
through September 30, 2023.
As previously reported by the Troubled Company Reporter, the Debtor
is currently obligated to First National Bank pursuant to a term
loan dated January 4, 2011, in the original principal amount of $5
million, and a line of credit in the original principal amount of
$1 million. The Term Loan appears to be secured by a first-priority
Deed of Trust, Assignment and Security Agreement dated January 4,
2011, and recorded among the land records of Cecil County,
Maryland, at Liber 2960, Folio 119. The Line of Credit appears to
be secured by a second priority lien on the Real Property. On
January 23, 2022, FNB also filed a UCC-1 Financing Statement with
the Maryland State Department of Assessments and Taxation,
asserting a first-priority lien on and against, substantially all
personal property of the Debtor.
In addition, on October 19, 2022, the Debtor and FNB entered into a
Agreement Regarding Loans which provided, in part, the Debtor could
use the Escrow Account funds to make its monthly principal and
interest payments as due on the Term Loan for the months of
September 2022 through August 2023, with the drafted monthly
payments being repaid to FNB on or before August 31, 2024. The
Debtor seeks to use the Escrow Account for certain identified
purposes in the Cash Collateral Motion.
The Court ruled the Debtor will use the cash collateral in the
Escrow Account to make monthly payments to FNB in the amount of
$23,658 on account of the Term Loan and $7,096 on account of the
Line of Credit.
The Debtor's payments to FNB under the Order and the terms and
conditions set forth in the First and Second Interim Orders will
constitute adequate protection of FNB's interest in its collateral
pending the outcome of the Final Hearing.
A further interim hearing on the matter is set for September 21,
2023 at 2 p.m.
A copy of the order is available at https://urlcurt.com/u?l=yPInfS
from PacerMonitor.com.
About The West Nottingham Academy in Cecil County
The West Nottingham Academy in Cecil County is a college
preparatory boarding and day school for grades 9-12 and
postgraduates. West Nottingham offers a wide variety of athletic
programs, competitive and non-competitive clubs, visual, and
performing arts.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Md. Case No. 23-13830) on May 31, 2023.
In the petition signed by Jim Shone, trustee, the Debtor disclosed
$2,212,793 in assets and $7,238,821 in liabilities.
Judge Michelle M. Harner oversees the case.
Matthew Abbott, Esq., at Wolff and Orenstein LLC, represents the
Debtor as legal counsel.
NOVAN INC: Court OKs $12MM DIP Loan from Ligand Pharmaceuticals
---------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware authorized
Novan, Inc. and EPI Health, LLC to use cash collateral and obtain
postpetition financing, on a final basis.
The Debtors are permitted to obtain postpetition financing pursuant
to a senior, secured, superpriority, debtor-in-possession
multi-draw term loan facility, subject to the terms and conditions
set forth in the Interim Order and the Superpriority Debtor in
Possession Loan and Security Agreement, by and among the Borrowers,
and one or more affiliates of Ligand Pharmaceuticals, Incorporated
or its designee.
The Ligand DIP facility consists of:
(i) new money term loans in an aggregate principal amount of
up to $12 million, of which $1 million will be available upon entry
of the Interim Order, subject to the Initial DIP Budget, of which
up to $3.5 million in the aggregate will be available prior to the
entry of the Final Order, and the remainder will be available upon
the entry of the Final Order; and
(ii) a roll-up of prepetition obligations to Ligand, which will
be deemed rolled up and converted into DIP Obligations.
Pursuant to the Loan and Security Agreement dated as of July 14,
2023 by and among (a) Novan, Inc., as borrower, (b) EPI Health, as
borrower and (c) Ligand, the borrowers incurred "Obligations" to
Ligand as Prepetition Secured Lender on a joint and several basis.
As of the Petition Date, the borrowers were indebted and liable to
Ligand in the aggregate principal amount of not less than $3
million, plus accrued and unpaid interest, fees and expenses.
As adequate protection, Ligand is granted a valid, perfected
replacement security interest in and lien on account of the
Prepetition Secured Lender's Diminution in Value upon all of the
DIP Collateral.
The Prepetition Secured Lender is granted an allowed superpriority
administrative expense claim against the DIP Loan Parties on a
joint and several basis (without the need to file any proof of
claim) on account of the Prepetition Secured Lender's Diminution in
Value under 11 U.S.C. section 507(b), which Adequate Protection
Superpriority Claim will be payable from and have recourse to all
DIP Collateral and all proceeds thereof.
The Debtors will also grant CSNK Working Capital Finance Corp.
d/b/a Bay View Funding -- in its capacity as buyer, under a
Factoring Agreement dated as of December 1, 2022, with EPI Health,
as seller -- a valid, perfected replacement security interest in
and lien on account of Bay View's Diminution in Value upon the same
property of Debtor EPI Health on which Bay View had a perfected,
first-priority security interest and lien prior to the Petition
Date.
Until the DIP Obligations are indefeasibly paid in full and all
commitments thereunder are terminated, the occurrence of any of the
following events, will constitute an event of default:
(i) The Debtors' failure to perform, in any material respect,
any of the terms, provisions, conditions, covenants or obligations
under the Interim Order, including, without limitation, failure to
make any payment under the Interim Order when due or comply with
any Milestones;
(ii) The occurrence and continuation of any Events of Default
under, and as defined in, the DIP Credit Agreement or any other DIP
Documents; and
(iii) The Debtors' failure to comply with the terms of the
Interim Order will constitute Events of Default.
As a condition to the DIP Facility and the use of cash collateral,
the Debtors have agreed to these milestones:
(i) No later than five business days after the Petition Date,
entry by the Court of the Interim Order;
(ii) No later than 35 calendar days after the Petition Date,
entry by the court of an order approving the Asset Purchase
Agreement and the Bidding Procedures for the Purchased Assets;
(iii) No later than 35 calendar days after the Petition Date,
entry by the Court of the Final Order;
(iv) No later than 42 calendar days after the Petition Date,
the submission deadline for all bids for the sale of the Purchased
Assets as set forth in the Bidding Procedures;
(v) No later than 45 calendar days after the Petition Date,
holding of an auction (if necessary) for the sale of the Purchased
Assets as set forth in the Bidding Procedures;
(vi) No later than 55 calendar days after the Petition Date,
entry by the Bankruptcy Court of the Sale Order; and
(vii) No later than 70 calendar days after the Petition Date,
consummation of the sale of the Purchased Assets.
A copy of the order is available at https://urlcurt.com/u?l=qoSqDZ
from PacerMonitor.com.
About Novan Inc.
Based in Durham, North Carolina, Novan Inc. (Nasdaq: NOVNQ) is a
clinical development-stage biotechnology company focused on
leveraging nitric oxide's naturally occurring anti-viral,
anti-bacterial, anti-fungal and immunomodulatory mechanisms of
action to treat a range of diseases with significant unmet needs.
Nitric oxide plays a vital role in the natural immune system
response against microbial pathogens and is a critical regulator of
inflammation.
Novan Inc. and affiliate EPI Health, LLC, sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case
No. 23-10937) on July 17, 2023.
As of March 31, 2023, Novan disclosed $79,793,000 in assets against
$7,922,000 in liabilities.
Judge Laurie Selber Silverstein oversees the case.
The Debtors tapped MORRIS, NICHOLS, ARSHT & TUNNELL LLP as counsel,
SIERRA CONSTELLATION PARTNERS, LLC, as financial advisor, and
RAYMOND JAMES AND ASSOCIATES as investment banker. SMITH,
ANDERSON, BLOUNT, DORSETT, MITCHELL & JERNIGAN, L.L.P., is special
counsel. KURTZMAN CARSON CONSULTANTS, LLC, is the claims agent.
Counsel to Ligand Pharmaceuticals, Incorporated as DIP Lender and
Prepetition Secured Lender:
Craig A. Wolfe, Esq.
Kristen V. Campana, Esq.
Jason R. Alderson, Esq.
T. Charlie Liu, Esq.
Morgan, Lewis & Bockius LLP
101 Park Ave.
New York, NY 10036
NOVATION HOLDINGS INC: Dives in Chapter 11, Owes About $100 Million
-------------------------------------------------------------------
Emily Lever of Law360 reports that Novation Holdings Inc. , whose
main assets include a health care staffing company, filed for
Chapter 11 protection in Delaware with a prepackaged plan and $97.
8 million in debt after it was hit hard by the COVID-19 pandemic
and lost several local government contracts.
About Novation Holdings
Novation Holdings, Inc., operates as regional Internet service
provider. The company offers Internet access, emails, and related
services in the United States. It also provides administrative
services; and focuses on teaching children Spanish through learning
centers and various after school enrichment programs. The company
was formerly known as Allezoe Medical Holdings, Inc. and changed
its name to Novation Holdings, Inc. in October 2012. Novation
Holdings, Inc. was founded in 1998 and is based in Boca Raton,
Florida.
Novation Holdings Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 23-11152) on August 13,
2023. In the petition filed by Michael Wyse, as chief restructuring
officer, the Debtor reported assets up to $50,000 and estimated
liabilities between $50 million and $100 million.
The Debtor is represented by:
Robert F. Poppiti, Jr., Esq.
Young, Conaway, Stargatt & Taylor, LLP
1724 Phoenix Parkway
Building 600
College Park, GA 30349
OFFSHORE SPARS: Unsecured Creditors to Split $45K over 3 Years
--------------------------------------------------------------
Offshore Spars Co. and Eric R. Graczyk filed with the U.S.
Bankruptcy Court for the Eastern District of Michigan a Plan of
Reorganization dated August 21, 2023.
Offshore was established in 1976 and its primary business is
designing and manufacturing carbon fiber and composite masts and
booms for the global superyacht market.
In January 2022, Offshore was acquired by Graczyk Holdings, LLC, a
Michigan limited liability company whose sole member is Mr. Eric
Graczyk. Not until after the purchase of Offshore did Mr. Graczyk
discover numerous financial improprieties, breaches of warranties,
and general mismanagement that had befallen the Debtor under
previous ownership.
Though Mr. Graczyk spent considerable time and effort prior the
Petition Date attempting to remedy such matters, a reorganization
of the business through a Subchapter V bankruptcy became necessary.
Within 14 days of the Confirmation Date, Offshore and the Buyer
will close on the sale of the autoclave, tooling, and mast spinners
listed on the Asset Purchase Agreement pursuant to, inter alia,
Section 363 of the Bankruptcy Code. The purchase price for the Sale
is $400,000.00 with the assets being sold free and clear of any
lien, claim, or encumbrance. Contemporaneously on the Sale Closing
Date, Offshore and the Buyer will close on the Operating Lease.
From the sale proceeds, the Debtors shall be authorized and
directed to pay all Allowed Administrative Claims of the Cases and
the payments set forth in Section 4.5 of this Plan as a surcharge
senior to payment of the Allowed Secured Claim of Pathward.
Class VI consists of the Holders of Allowed Unsecured Claims
against Offshore. Neither pre-confirmation interest nor
post-confirmation interest on Allowed Class VII Claims will be
paid. A Creditor in this Class shall receive a pro rata
distribution incident to its Allowed Unsecured Claim based on 2
payments each year on a semi-annual basis of $7,500.00 per payment
for 3 years for a total of $45,000.00. The first payment shall be
due on or before January 31, 2024 and the second payment shall be
due on or before July 31, 2024. Such payments shall continue to be
made on the same date every January 31 and July 31 until the
earlier occurs of (i) the respective Claim is paid in full; or (ii)
July 31, 2026. This Class is Impaired.
Class VII consists of the Holders of Allowed Unsecured Claims
against Mr. Graczyk. Neither pre-confirmation interest nor
postconfirmation interest on Allowed Class VII Claims will be paid.
A Creditor in this Class shall receive a pro rata distribution
incident to its Allowed Unsecured Claim based on 2 payments each
year on a semi-annual basis of $2,500.00 per payment for 3 years,
for a total of $15,000.00. The first payment shall be due on or
before January 31, 2024 and the second payment shall be due on or
before July 31, 2024. Such payments shall continue to be made on
the same date every January 31 and July 31 until the earlier occurs
of (i) the respective Claim is paid in full; or (ii) July 31, 2026
This Class is Impaired.
Class VIII shall consist of the Interests of the Debtors. Holders
of the Interests shall retain their interests in the Debtors and
Reorganized Debtors in the same manner as percentage upon
confirmation of the Plan.
On the Effective Date, all of the Debtors' rights, titles, and
interests in and to all Assets shall revest in the Reorganized
Debtors to be operated and distributed by the Reorganized Debtors
pursuant to the provisions of this Plan.
A full-text copy of the Plan of Reorganization dated August 21,
2023 is available at https://urlcurt.com/u?l=BRgo4D from
PacerMonitor.com at no charge.
Counsel for Debtors:
STEVENSON & BULLOCK, P.L.C.
Elliot G. Crowder, Esq.
Ernest M. Hassan, III, Esq.
26100 American Drive, Suite 500
Southfield, MI 48034
Phone: (248) 354-7906
Facsimile: (248) 354-7907
Email: ecrowder@sbplclaw.com
Email: ehassan@sbplclaw.com
About Offshore Spars Co.
Offshore Spars Co. was established in 1976 and its primary business
is designing and manufacturing carbon fiber and composite masts and
booms for the global superyacht market. It has additional lines of
business including replacement and service of standing and running
rigging for yachts, e-commerce, and carbon fiber manufacturing for
other industries, including the aerospace and automotive
industries.
Offshore Spars filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. E.D. Mich. Case No. 23-44657) on May
23, 2023, with as much as $50,000 in assets and $1 million to $10
million in liabilities. Offshore Spars President Eric Graczyk
signed the petition.
Judge Thomas J. Tucker oversees the case.
Charles D. Bullock, Esq., at Stevenson & Bullock, P.L.C. represents
the Debtor as legal counsel.
OLAPLEX: S&P Downgrades ICR to 'B-' Outlook Negative
----------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on U.S.-based
premium hair-care provider Olaplex to 'B-' from 'B+' because
multiple downward performance revisions on account of weakening
demand for its products have left the company with historically
weak credit ratios, and the need to stabilize revenue and profits
amid the ongoing impact of negative media attention regarding the
efficacy and safety for its products. S&P Global Ratings-adjusted
EBITDA fell 75% year over year in the second quarter.
S&P said, "At the same time, we lowered our rating on Olaplex's
senior secured term loan B to 'B-' from 'BB-' and revised the
recovery rating to '3' (50%-70%, rounded estimate: 50%) from '2'
(70%-90%, rounded estimate: 70%). The recovery estimate reflects
our expectation for a lower emergence enterprise value (EV) in the
event of a default given the recent significant EBITDA decline and
potential that this asset-light company's brand name could be
impaired."
The negative outlook reflects the potential for a lower rating
within the next 12 months if revenue and EBITDA continue to
decline, limiting the company's ability to restore credit metrics.
Olaplex missed its forecast and consensus earnings and
significantly lowered fiscal year 2023 guidance.
The downgrade reflects material demand deterioration for Olaplex's
products driven by negative media attention around the efficacy and
safety of its products, new competition, retailer inventory
destocking, and weak macroeconomic conditions. For the six months
ended June 30, 2023, Olaplex's revenue and S&P Global
Ratings-adjusted EBITDA declined by 44% and 67%, respectively.
Additionally, the company revised downward its revenue and EBITDA
outlook for fiscal year 2023 by about 24% and 42%, respectively,
citing material underperformance in the second quarter and weak
demand trends obstructing a meaningful recovery in the second half
of fiscal 2023. Consequently, S&P now expects adjusted leverage
will deteriorate to about 6.2x in 2023 (about 4.7x excluding the
$206 million tax receivable agreement [TRA] liability). Note that
it does not net cash in its measure of leverage.
The company has guided to significantly increasing its marketing
investments (from $40 million in 2022 to $80 million in 2023)
focused on creating brand awareness and combating alleged
misinformation to arrest the slower demand. S&P believes this
ramp-up signifies the urgent need to stabilize demand.
S&P notes that uncertainty remains around the timing of a potential
recovery and whether the company has hit its trough demand levels.
Olaplex focuses on the niche premium hair care space under one
brand and differentiates its limited product range with one
patented ingredient, bisamino. Continued negative media attention
or product-related issues could have an outsized impact on brand
reputation, and consequently its top line, in contrast to larger
operators who have multiple brands within their portfolio. It is
possible sales and profits could continue to decline and not
recover given the numerous hurdles Olaplex faces.
New competition in the prestige hair care space could further limit
Olaplex's recovery prospects. S&P said, "While Olaplex indicates it
continues to lead the competitive landscape in terms of absolute
market share and customer acquisition metrics within the prestige
space, we believe multiple new competitors (both new entrants and
established operators) have entered the prestige hair care
subsector over the past few years resulting in Olaplex losing some
share. We believe consumers have many brands from which to choose;
moreover, the price competition Olaplex has recently faced for its
premium-priced products could intensify if the economy weakens
further."
S&P said, "We expect Olaplex will maintain adequate liquidity over
the next 12 months. We anticipate the company will generate
positive cash funds from operations (FFO) albeit at lower levels
than previously forecasted, which, along with material cash
balances, working capital unwind, and full availability on its
revolving credit facility (RCF) should be sufficient to cover
minimum capital requirements (reflecting Olaplex's asset-light
outsourced business model), debt amortization, and TRA liability
payments. We also anticipate the 4.5x secured leverage covenant,
which springs when RCF usage exceeds 35%, will not apply over the
next 12 months.
"The negative outlook reflects the potential for a lower rating
within the next 12 months if adjusted EBITDA and credit metrics
continue to deteriorate.
"We could lower the ratings if, in our view, Olaplex's capital
structure becomes unsustainable, interest coverage falls below
1.5x, or free operating cash flow (FOCF) declines to levels that
are significantly below our expectations."
This could occur if:
-- There is a continued negative impact on sales due to
unfavorable media attention about product efficacy and safety
concerns;
-- Operating performance significantly underperforms our
expectations because of product misses despite heavy marketing
spending, intensifying competition from existing or new entrants
enter the premium hair care space, or consumer spending on premium
hair care products falls because of a weak economy; or
-- The company adopts more aggressive financial policies,
including debt-financed dividends or large acquisitions.
S&P said, "We could also lower the rating if we believe the
potential for Olaplex to repurchase a material amount of debt below
face value (which we could view as a selective default) has
increased. This is possible considering the company's relatively
high cash balances and potential for further performance
deterioration.
"We could revise the outlook to stable if the company can stabilize
revenue and profits over the next few quarters."
This could occur if the company:
-- Can successfully navigate the recent negative media attention;
and
-- Grow its market share in the prestige hair care space.
Alternatively, S&P could consider a positive rating action if the
company repays a material amount of debt at face value while
preventing further substantial EBITDA erosion.
OMEGA TWIN: Voluntary Chapter 11 Case Summary
---------------------------------------------
Debtor: Omega Twin River Holdings, LLC
318 E Spring St.
Neosho, MO 64850
Business Description: The Debtor is a lessor of real estate whose
principal assets are located at 3551
Doniphan Dr Neosho, MO.
Chapter 11 Petition Date: August 25, 2023
Court: United States Bankruptcy Court
Western District of Missouri
Case No.: 23-30263
Debtor's Counsel: Ted L. Tinsman, Esq.
DEBT DOCTORS OF MISSOURI, LLC
3337 E. Ridgeview St.
Springfield, MO 65804
Tel: 417-466-3328
Fax: 417-886-5904
Email: ted@debtdoctorslaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by David K. Papen as managing member.
The Debtor stated it has no creditors holding unsecured claims.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/4CS5OHI/Omega_Twin_River_Holdings_LLC__mowbke-23-30263__0001.0.pdf?mcid=tGE4TAMA
OMNIQ CORP: Incurs $3.9 Million Net Loss in Second Quarter
----------------------------------------------------------
Omniq Corp. filed with the Securities and Exchange Commission its
Quarterly Report on Form 10-Q disclosing a net loss of $3.87
million on $20.45 million of total revenues for the three months
ended June 30, 2023, compared to a net loss of $3.18 million on
$24.21 million of total revenues for the three months ended June
30, 2022.
For the six months ended June 30, 2023, the Company reported a net
loss of $7.37 million on $48.27 million of total revenues compared
to a net loss of $5.75 million on $50.53 million of total revenues
for the six months ended June 30, 2022.
As of June 30, 2023, the Company had $55.76 million in total
assets, $71.68 million in total liabilities, and a total
stockholders' deficit of $15.91 million.
Commentary
Shai Lustgarten, CEO, commented "Our core legacy business services
the needs of many of the world's largest companies. While we
remain confident in our continued success and the opportunities
ahead, these large companies were more cautious, took more time to
make decisions and pushed out orders as they were faced with the
challenges of an uncertain economy over the last several months.
This caused a temporary delay in receiving several large orders
resulting in a $4M decrease in Q2 revenue vs 2022. Despite these
challenges in the quarter, we continued to make significant
advancements which provide us the ability to reach our yearly
objectives and long-term growth plans.
"Our dedicated team worked tirelessly throughout the quarter to
provide excellent customer service and actively pursue numerous
substantial new contracts. We are confident that these efforts
will yield positive results soon, more than compensating for the $4
million decrease.
"We continue to witness robust demand for our AI systems in the
United States, South America and the Middle East which resulted in
an overall AI revenue increase of 91%. Our Q-Shield, Safe City
system has exhibited impressive success, fostering safer
environments and generating increased revenues upon deployment.
Currently, we have 15 additional cities eagerly anticipating the
implementation of this system. As we ventured into a new industry
with groundbreaking technology, we encountered several learning
curves and navigated unexpected regulatory demands. We are pleased
to inform you that these challenges are being successfully
addressed. We anticipate a swifter pace of deployments for the
additional 16 cities and continued positive pace of new contracts
moving forward.
"In our ongoing commitment to financial responsibility, we have
continued with significant cost-cutting efforts in SG&A, resulting
in a substantial reduction of expenses by $1.7 million. This
aligns with our ongoing efforts to achieve positive EBITDA.
"We are excited about our recent announcement regarding the
definitive agreement for Tadiran Telecomm, and we are working on
regulatory requirements to conclude the closing. Pending approval,
upon closure, this acquisition will significantly enhance OMNIQ's
market positioning, adding robust technology to our product
portfolio."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/278165/000149315223028527/form10-q.htm
About omniQ Corp.
Headquartered in Salt Lake City, Utah, omniQ Corp. (OTCQB: OMQS) --
http://www.omniq.com-- provides computerized and machine vision
image processing solutions that use patented and proprietary AI
technology to deliver data collection, real time surveillance and
monitoring for supply chain management, homeland security, public
safety, traffic and parking management and access control
applications. The technology and services provided by the Company
help clients move people, assets and data safely and securely
through airports, warehouses, schools, national borders, and many
other applications and environments.
Omniq Corp reported a net loss of $13.61 million for the year ended
Dec. 31, 2022, compared to a net loss of $13.14 million for the
year ended Dec. 31, 2021. As of March 31, 2023, the Company had
$68.47 million in total assets, $81.31 million in total
liabilities, and a total stockholders' deficit of $12.84 million.
Salt Lake City, Utah-based Haynie & Company, the Company's auditor
since 2019, issued a "going concern" qualification in its report
dated March 30, 2023, citing that the Company has a deficit in
stockholders' equity, and has sustained recurring losses from
operations. This raises substantial doubt about the Company's
ability to continue as a going concern.
ONLINE EDUGO: Court OKs Cash Collateral Access Thru Sept 12
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California,
Los Angeles Division, authorized Online Edugo, Inc. to use cash
collateral on an interim basis, through September 12, 2023.
During the Interim Period, the Debtor is directed to transfer $750
a month to Susan K. Seflin, the Subchapter V trustee to be held in
an estate account maintained by the Trustee pending Court approval
of a fee application and authorization to apply the funds held in
trust to any approved fees and costs of the Trustee.
The United States Small Business Administration, Open Bank, PHH
Mortgage Services, U.S. Bank, N.A., Robert S. Lee, John Kim and
Vicki Han are granted replacement liens upon the postpetition
assets of the Debtor's estate as set forth in the written ruling.
A continued hearing on the matter is set for September 12, 2023 at
1 p.m.
About Online Edugo
Founded in 2014, Online Edugo, Inc. operates a testing center in
Los Angeles.
Online Edugo filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. C.D. Calif. Case No. 23-14459) on July 17,
2023, with $2,147,657 in assets and $1,805,315 in liabilities.
Connie H. Kim, chief executive officer, secretary and chief
financial officer, signed the petition.
Judge Neil W. Bason oversees the case.
Kevin Tang, Esq., at Tang & Associates represents the Debtor as
legal counsel.
OPEN COURT SPORTS: Court OKs Cash Collateral Access on Final Basis
------------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas,
Houston Division, authorized Open Court Sports Complex, LLC to use
cash collateral on a final basis in accordance with the budget.
Susser Bank, N.A. is granted a senior post-petition replacement
lien on all new accounts, contract rights, and general intangibles,
from and after the date of filing of the case, as further security
for the use of cash collateral, but only to the extent of the
Debtor's post-Petition use of the cash collateral.
Susser Bank, N.A. will be granted the liens and protections of a
good faith lender under 11 U.S.C Sections 364(c),(e).
To the extent of any diminution in value of the cash collateral,
Susser Bank, N.A. will have an administrative expense pursuant to
11 U.S.C. Section 507(b) in the Debtor's Chapter 11 Case and
against the Debtor's bankruptcy estates for the Debtor's use of
cash collateral to the extent of any diminution in the value of the
cash collateral and these administrative claims will have priority
over and above all other costs and expenses of the kind specified
in, or ordered pursuant to, 11 U.S.C. Sections 503(b) or 507(a).
Capital Certified Development Corporation will be granted a
post-petition replacement lien junior to Susser Bank, N.A. on all
new accounts, from and after the date of filing of the case, as
security for the use of cash collateral, but only to the extent of
the Debtor's post-Petition use of the cash collateral.
To the extent of any diminution in value of the cash collateral,
Capital Certified Development Corporation will have an
administrative expense pursuant to 11 U.S.C. section 507(b) in the
Debtor's Chapter 11 Case and against the Debtor's bankruptcy
estates for the Debtor's use of cash collateral to the extent of
any diminution in the value of the cash collateral and these
administrative claims will have priority over and above all other
costs and expenses of the kind specified in, or ordered pursuant
to, 11 U.S.C. Sections 503(b) or 507(a).
Capital Certified Development Corporation will be granted the liens
and protections of a good faith lender under 11 U.S.C Sections
364(c),(e).
These events constitute an "Event of Default":
(a) The Debtor's Chapter 11 Case is converted to a case under
Chapter 7 of the Bankruptcy Code or is dismissed or Susser Bank is
granted relief from the automatic stay;
(b) Thes Court removes the Debtor as debtor-in-possession under 11
U.S.C. Section 1181(a);
(c) Failure of the Debtor to timely make any adequate protection
payment required under the Final Order without notice of any kind;
and
(d) Any default under, breach of or failure to comply with, any
provisions of the Final Order, which breach is not cured within
five business days after the written notice thereof.
A copy of the court's order and the Debtor's budget is available at
https://urlcurt.com/u?l=u28Ixn from PacerMonitor.com.
The Debtor projects $36,000 in total deposits and $24,819 in total
expenses for one month.
About Open Court Sports Complex
Open Court Sports Complex, LLC is an indoor basketball, volleyball,
pickleball, and floor sports facility in Katy, Texas.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. S.D. Texas Case No. 23-32826) on July 28,
2023, with $8,281,574 in assets and $6,208,520 in liabilities.
Angela Smith-Duncan, manager, signed the petition.
Judge Jeffrey P. Norman oversees the case.
Kimberly A. Bartley, Esq., at Waldron & Schneider, LLP represents
the Debtor as legal counsel.
ORION TECHNOLOGIES: Wins Cash Collateral Access Thru Aug 30
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida
authorized Orion Technologies LLC to use cash collateral on an
interim basis in accordance with the budget, with a 10% variance,
pending a further hearing set for August 30, 2023 at 11:30 a.m.
The Debtor is authorized to provide adequate protection to Penta
Orion, LLC, Seth Ellis, and Phoenix Mecano, Inc. pursuant to the
terms and conditions of the Interim Order.
As adequate protection with respect to the Alleged Secured Parties'
alleged interests in the cash collateral, the Alleged Secured
Parties are granted a replacement lien in and upon all of the
categories and types of collateral in which they allegedly held a
security interest and lien as of the Petition Date to the same
extent, validity, and priority that they allegedly held as of the
Petition Date.
The Debtor will maintain insurance coverage for the Collateral.
A copy of the Court's order and the Debtor's budget is available at
https://urlcurt.com/u?l=aAyRs2 from PacerMonitor.com.
The Debtor projects $636,030 in total revenue and $563,211 in total
expenses for August 2023.
About Orion Technologies
Orion Technologies, LLC sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. M.D. Fla. Case No. 23-01867) on May 17,
2023, with $2,047,840 in assets and $20,342,885 in liabilities.
Judge Tiffany P. Geyer oversees the case.
James C. Moon, Esq., at Melano Budwick, P.A. is the Debtor's legal
counsel.
OUTFRONT MEDIA: Egan-Jones Retains CCC Senior Unsecured Ratings
---------------------------------------------------------------
Egan-Jones Ratings Company on August 1, 2023, maintained its 'CCC'
foreign currency and local currency senior unsecured ratings on
debt issued by OUTFRONT Media Inc. EJR also withdraws rating on
commercial paper issued by the Company.
Headquartered in New York, OUTFRONT Media Inc. leases advertising
space on out-of-home advertising structures and sites.
PAR 5 PROPERTY: Trustee Taps Gabrielson & Company as Accountant
---------------------------------------------------------------
Walter Dahl, the Subchapter V trustee appointed in Par 5 Property
Investments, LLC's Chapter 11 case, received approval from the U.S.
Bankruptcy Court for the Eastern District of California to employ
Gabrielson & Company as his accountant.
The firm will perform tax services including evaluation of benefit,
if any, of filing to application to obtain Employee Retention
Credits from the Internal Revenue Service for qualified payments of
payroll during 2020 and 2021 calendar years, including preparation
of the application for the Employee Retention Credits.
Michael Gabrielson of Gabrielson & Compan has agreed to undertake
the matter at his standard hourly rate of $445.
Mr. Gabrielson disclosed in a court filing that his firm is a
"disinterested person" pursuant to Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Michael R. Gabrielson
Gabrielson & Company
711 Grand Ave.
San Rafael, CA 94901
Phone: (415) 454-1600
About Par 5 Property Investments
Auburn, Calif.-based Par 5 Property Investments, LLC filed a
petition under Chapter 11, Subchapter V of the Bankruptcy Code
(Bankr. E.D. Calif. Case No. 21-22404) on June 29, 2021, listing
$3,847,515 in assets and $5,096,824 in liabilities. Walter R. Dahl
serves as Subchapter V trustee.
Judge Fredrick E. Clement oversees the case.
Iain A. Macdonald, and Daniel E. Vaknin, at MacDonald Fernandez,
LLP, served as the Debtor's bankruptcy attorneys.
PEGASUS HOME: Case Summary & 30 Largest Unsecured Creditors
-----------------------------------------------------------
Lead Debtor: Pegasus Home Fashions, Inc.
107 Trumbull St., Building G-1
Elizabeth, NJ 07206
Business Description: Pegasus Home is a poly-filled pillow
manufacturer. Pegasus offers an extensive
line of bedding and home products, which has
historically included items such as bed
pillows (both poly-filled and memory foam),
quilts, bedspreads, blankets, throws, sheet
sets, decorative pillows, chair pads, pet
beds, furniture protectors, pillow
protectors, and mattress pads and
protectors.
Chapter 11 Petition Date: August 24, 2023
Court: United States Bankruptcy Court
District of Delaware
Four affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Pegasus Home Fashions, Inc. (Lead Case) 23-11235
Pegasus Home Fashions Intermediate Inc. 23-11234
Pegasus Home Fashions Purchaser Inc. 23-11236
Weatherford Cushion Co. 23-11237
Judge: Hon. Mary F. Walrath
Debtors' Counsel: Michael R. Nestor, Esq.
Kenneth J. Enos, Esq.
S. Alexander Faris, Esq.
Kristin L. McElroy, Esq.
Emily C.S. Jones, Esq.
YOUNG CONAWAY STARGATT & TAYLOR, LLP
Rodney Square
1000 North King Street
Wilmington, Delaware 19801
Tel: (302) 571-6000
Fax: (302) 571-1253
Email: mnestor@ycst.com
kenos@ycst.com
afaris@ycst.com
kmcelroy@ycst.com
ejones@ycst.com
Debtors'
CEO Provider: RAS MANAGMENT ADVISORS, LLC
Debtors'
Notice,
Claims,
Solicitation,
Balloting Agent
and Administrative
Advisor: EPIQ CORPORATE RESTRUCTURING, LLC
Debtors'
Investment
Banker: SSG ADVISORS, LLC
Estimated Assets
(on a consolidated basis): $100 million to $500 million
Estimated Liabilities
(on a consolidated basis): $100 million to $500 million
The petitions were signed by Timothy Boates as chief executive
officer.
A full-text copy of the Lead Debtor's petition is available for
free at PacerMonitor.com at:
https://www.pacermonitor.com/view/B4WU2IY/Pegasus_Home_Fashions_Inc__debke-23-11235__0001.0.pdf?mcid=tGE4TAMA
Consolidated List of Debtors' 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Hebei Textiles Trade Claim $904,075
42 Xisanzhuang Street
Shijiazhuang
Hebei 50071
China
Email: SZHANG@HBBED.COM;
JGAO@HBBED.COM;
WANGJIE@HBTEX.COM
2. Bebe Touseef Anwer Trade Claim $659,710
Sqaure 7 Eden Valley
Chak 204 RB
Faisalabad, Punjab Pakistan
Email: TOUSEEF@BBJANPAK.COM
3. Sun Fiber LLC Trade Claim $549,008
1247 Frederic Drive
Richburg, SC 29729
Email: JARRIN.KREGER@SUNFIBERLLC.COM;
JOHN.HELMIG@SUNFIBERLLC.COM
4. Reindeer Consultants Professional $536,643
Reindeer Consulting Group Fee Claim
4403 15th Avenue, Suite 520
Brooklyn, NY 11219
Email: INFO@REINDEERCONSULTANTS.COM
5. PRE-ABI/US Customs and Border Trade Claim $500,122
Protection
1300 Pennsylvania Avenue NW
Washington, DC 20004
6. Zhejiang Liuqiao Home Trade Claim $341,021
Textile Co. Ltd.
583HFGP
Xiaoshan District Hangzhou
Zhejiang China
7. KKP Fine Linen PVT Ltd Trade Claim $305,071
88 Salem Road, Namakkal - 637 001
Tamil Nadu
India
Email: RAKESH.MAKKAR@GMAIL.COM
8. Standard Fiber, LLC Trade Claim $256,614
919 East Hillsdale Blvd
Suite 100
Foster City, CA 94404
Email: PEGGYCHIU@STANDARDFIBER.COM;
SALLYMAN@STANDARDFIBER.COM
9. International Paper Trade Claim $255,150
P.O. Box 644095
Pittsburgh, PA 15264
Email: MEREDITH.PUCKETT@IPAPER.COM
10. GP Corrugated LLC Trade Claim $254,894
Attn: Hummingbird Digital
Print Solutions
P.O. Box 743348
Los Angeles, CA 90074-3338
Email: ALISHA.WARRINGTON@GAPAC.COM
11. Glopak Industries, Inc. Trade Claim $220,086
1037 State Street
Perth Amboy, NJ 08861
Email: EUGENEG@GLOPAKINDUSTRIES.COM
12. ESSG LSQ Funding Group, L.C. Trade Claim $173,645
ESSG
P.O. Box 741383
Atlanta, GA 30374-1383
Email: INFO@EMPLOYERSOLUTIONSGROUP.COM
13. Teetex LLC Trade Claim $168,488
90 S spruce Ave, Suite T
South San Francisco, CA 94080
Email: TONYCHEN@TEETEXLLC.COM;
JAREDLI@TEETEXLLC.COM
14. Vara Home (On Behalf of Trade Claim $142,386
Shanghai Nutex)
Suite 2306, Guangqi Cheng,
No 425 Yishan Road
Shanghai, China
Email: BWOLNO@VARAHOMEUSA.COM;
MMUCCIARONE@VARAHOMEUSA.COM
15. NorthStar Trade Claim $125,604
94 Maple Street
P.O. Box 188
East Longmeadow, MA 01028
Email: NGOODMAN@NSRECYCLE.COM
16. Apex Logistics International Inc. Trade Claim $111,027
145-68 228th Street
Unit 3-4
Springfield Gardens, NY 11413
Email: INFO@APEXGLOBE.COM
17. Shine Logistics Trade Claim $100,026
9245 Laguna Springs Dr.
Suite 200
Elk Grove, CA 95758
Email: HELPDESK@SHINELOGISTICSLLC.COM
18. Pratt Industries Trade Claim $97,303
Dba Pratt (Allentown
Corrugating), LLC
P.O. Box 933949
Atlanta, GA 31193-3949
Email: CPRIGGEN@PRATTINDUSTRIES.COM;
BJORDAN@PRATTINDUSTRIES.COM
19. Advanced Foam Recycling Trade Claim $88,760
Amalgamate Processing, Inc.
P.O. Box 1257
Hurst, TX 76053
Email: DUANE@ADVFOAMREC.COM
20. GMR Generated Materials Recovery Trade Claim $76,814
3444 N 27th Ave
Phoenix, AZ 85017
Email: JCOHEN@GENERATED.COM;
MGREEN@GENERATED.COM
21. Travelers CL Remittance Center Trade Claim $73,580
P.O. Box 660317
Dallas, TX 72566-0317
22. Bell Container Corp. Trade Claim $63,533
P.O. Box 5728
615 Ferry Street
Newark, NJ 07105
Email: DORLOVSKY@BELLCONTAINER.COM
23. Clients First Trade Claim $55,000
670 North Beers St
Bldg 4-2nd Floor
Holmdel, NJ 07733
24. Thaler Search Group, LLC Trade Claim $52,500
421 Alyssa Brooke Dr;
Sheperdsvilel, KY 40165-8519
Email: DTHALER@TSGSEARCH.COM
25. Stein Fibers, Ltd. Trade Claim $50,680
Key Bank Lock Box Services
P.O. Box 714522
Cincinnati, OH 45271-4522
Email: MANDY@STEINFIBERS.COM;
PHILIP.WASSERMAN@STEINFIBERS.COM
26. Xing Bang Trade Claim $48,805
No. 299, Jiu Shu Fang Road
Industry Park of Camel
Zhen Hai District
Ningbo City
Zhejiang Provice 15202
China
Email: LIGUOPING650@126.COM
27. Millwood Incorporated Trade Claim $48,416
P.O. Box 960
Vienna, OH 44473-0960
Email: GDEVATT@MILLWOODINC.COM
28. Excel Temporary Services Trade Claim $42,125
P.O. Box 13188
Milwaukee, WI 53213-0188
29. Green Bay Packaging Trade Claim $38,383
Bin No. 53139
Milwaukee, WI 53288
Email: CBREKKE@GBP.COM
30. HealthcareSC, LLC Trade Claim $36,693
MLily
1 Mlily Way
Winnsboro, SC 29180
Email: YIWEI.HE@HKFOAMUS.COM;
LIN.CHEN@HKFOAM.COM;
PEIPEI.GUO@HKFOAMUS.COM;
TONI@HKFOAMUS.COM
PHOENIX TELECOM: Court OKs Cash Collateral Access on Final Basis
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Florida,
Pensacola Division, authorized Phoenix Telecom, Inc. to use cash
collateral on a final basis in accordance with the budget, with a
10% variance.
As previously reported by the Troubled Company Reporter, the Debtor
intends to use cash collateral to pay operating expenses and the
costs of administering the Chapter 11 case.
The Debtor's primary secured creditor is the Small Business
Administration. The SBA asserts that it is owed approximately
$533,067. On June 10, 2020, the SBA filed a UCC-1 Financing
Statement in the Florida Secured Transactions Registry, asserting a
lien on all tangible and intangible personal property of the
Debtor, specifically including accounts and accounts receivables.
As of the Petition Date, the Debtor had cash in accounts totaling
approximately $470 and the Debtor's accounts receivable total
approximately $132,259.
The Debtor is authorized to provide adequate protection, pursuant
to 11 U.S.C. Sections 363(c)(2)(A) and 363(e), to the SBA pursuant
to the terms and conditions of the Final Order. As adequate
protection with respect to the SBA's interest in the cash
collateral, the SBA is granted a replacement lien in all of the
categories and types of collateral in which it held a security
interest and lien as of the Petition Date to the same extent,
validity and priority that it held as of the Petition Date.
A copy of the court's order and the Debtor's budget is available at
https://urlcurt.com/u?l=QPgzKs from PacerMonitor.com.
The Debtor projects $305,000 in gross profit and $228,525 in total
expenses.
About Phoenix Telecom, Inc.
Phoenix Telecom, Inc. is a Florida corporation established in 2002
that specializes in wireless construction and modification in the
Southeast region of the U.S. Phoenix Telecom offers services
ranging from construction of new telecommunication towers,
structural upgrades and modifications to existing telecommunication
towers, tower mount modifications, lines and various antenna
installs, telecommunication tower maintenance, technical services,
and other related services.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Fla. Case No. 23-30408) on June 14,
2023. In the petition signed by Jesus V. Delgado, president, the
Debtor disclosed up to $10 million in both assets and liabilities.
Judge Jerry C. Oldshue, Jr. oversees the case.
Jodi Daniel Dubose, Esq., at Stichter, Riedel, Blain and Postler,
P.A., represents the Debtor as legal counsel.
PIERLO INC: Unsecured Creditors to Split $75K over 5 Years
----------------------------------------------------------
Pierlo, Inc., filed with the U.S. Bankruptcy Court for the District
of Arizona a Plan of Reorganization under Subchapter V dated August
17, 2023.
The Debtor operates as Baker's Travertine Power Clean which
provides high-end stone and tile cleaning. Robert Michael Vuolo,
Jr. incorporated the Debtor on or around April 30, 2021.
Shortly thereafter, the Debtor acquired its operation and assets,
including the tradename "Baker's Travertine Power Clean," from
Baker's Travertine Power Clean, Inc. Approximately a week after
closing the business acquisition, the seller provided the Debtor
with an inventory of acquired assets which differed greatly from
the previous representations made about the business's assets in
balance sheets and tax returns.
On August 27, 2021, the Debtor and Mike Vuolo initiated the Baker
Litigation against the seller and broker behind the acquisition.
Through the litigation, the Debtor seeks to recover the value lost
due to the misrepresentations occurring throughout the purchase
negotiations and due to the violation of the non-compete occurring
after the acquisition. Unfortunately, the Debtor's lower-than
represented revenue has prevented it from being able to properly
service the Live Oak debt leading to the need for the current
reorganization.
The Debtor anticipates that its future income can provide adequate
revenue to repay all Creditors more than the liquidation value of
its assets. Unfortunately, due to misrepresentations inflating the
operation's value at the time of purchase, the Debtor's operations
likely cannot fully refund the obligations incurred for such
purchase. However, the Debtor hopes to recover this difference
through the Baker Litigation.
As a result, Mike Vuolo and Cole Pierce have reached an agreement
whereby, in exchange for the interests granted to him under this
Plan, Cole Pierce will continue to fund the Baker Litigation from
his personal funds. This eliminates the litigation risk to the
Debtor and its Creditors and preserves the potential for a
significant return to all Creditors far beyond what the operations
may provide.
Class II consists of all Allowed Unsecured Claims against the
Debtor that are not entitled to classification in any other Class,
currently asserted in a total amount of $1,965,262.66. The Debtor
will investigate proofs of Claim filed in this Case for
objectionable issues and such objections must be filed in
accordance with this Plan. The Debtor shall pay holders of Allowed
Class II Claims their Pro Rata share of $75,000. The Debtor shall
make 5 annual payments of $15,000 beginning one year from the
Effective Date and continuing on the same day each year thereafter
until the Debtor has made all payments.
In addition to the foregoing, the Debtor will pay any proceeds
received from avoided and recovered transfers under Sections 542,
547, 548, 549, and 550 of the Bankruptcy Code and the Baker
Litigation that remain after the payments and credits. No
prepayment penalty shall apply to Class II. Class II is impaired.
Class III consists of all Allowed Equity Interests arising by
virtue of a shareholder's ownership interest in the Debtor. Upon
the Confirmation Date, the Class III Equity Interests shall be
divided as follows: 50% to Mike Vuolo and 50% to Cole Pierce. Class
III shall have the rights and obligations on account of their
Equity Interests as provided in the Debtor's prepetition
organizational agreements. Class III is impaired.
Upon the Effective Date, the Debtor will begin making payments to
Creditors under the Plan. The Debtor projects that it will have
accumulated sufficient funds over the course of the reorganization
to pay the Administrative Claim of the Case Trustee in full on the
Effective Date. To the extent that the Debtor does not have
sufficient funds to pay AJG in full on the Effective Date, AJG will
work with the Debtor to determine a repayment agreement outside of
the Plan terms.
The Debtor's post-confirmation performance will generate the funds
necessary to service the remaining payments due under the term of
the Plan. The Debtor does not expect any substantial changes during
the remaining Plan term. In addition to these set payments, the
Debtor will continue to pursue the Baker Litigation with the help
of third-party funding and will distribute any proceeds when
received pursuant to this Plan.
A full-text copy of the Plan of Reorganization dated August 17,
2023 is available at https://urlcurt.com/u?l=ZDFCdH from
PacerMonitor.com at no charge.
Attorneys for Debtor:
Thomas H. Allen, Esq.
David B. Nelson, Esq.
Allen, Jones & Giles, PLC
1850 N. Central Ave., Suite 1150
Phoenix, AZ 85004
Tel: (602) 256-6000
Fax: (602) 252-4712
Email: tallen@bkfirmaz.com
dnelson@bkfirmaz.com
About Pierlo Inc.
Pierlo, Inc., a company in Tempe, Ariz., provides cleaning,
finishing, polishing and sealing systems for travertine, marble and
limestone. It conducts business under the name Baker's Travertine
Power Clean.
Pierlo filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. D. Ariz. Case No. 23-03341) on May 19,
2023, with $72,245 in assets and $1,474,574 in liabilities. Pierlo
President Robert Michael Vuolo, Jr. signed the petition.
Judge Eddward P. Ballinger, Jr. oversees the case.
Allen, Jones & Giles, PLC, serves as the Debtor's legal counsel.
POLARIS OPERATING: Court OKs Interim Cash Collateral Access
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas,
Houston Division, authorized Polaris Operating, LLC and affiliates
to use cash collateral on an interim basis in accordance with the
budget, with a 15% variance.
The Debtors require the continued use of cash collateral in the
immediate future to preserve their business as a going concern and
to avoid an emergency shut-down of their wells.
As adequate protection, the Secured Lender is granted valid,
automatically perfected and enforceable additional adequate
protection replacement liens in accordance with the priority of the
applicable Secured Lender's prepetition security interests and
liens and subject to the Carve-Out and only in collateral of the
same type as such Secured Lender has a valid prepetition lien.
Subject to the Carve-Out, and to the extent of any Diminution in
Value, the Secured Lenders are further granted an allowed
superpriority administrative expense claim as provided and to the
full extent allowed by 11 U.S.C. Sections 503(b) and 507(b), with
priority over all administrative expense claims and unsecured
claims against the Debtor and its estate, now existing or hereafter
arising, of any kind or nature whatsoever.
A third interim hearing to consider entry of the Third Interim
Order is set for August 28, 2023 at 10 a.m.
A copy of the order is available at https://urlcurt.com/u?l=spXI0L
from PacerMonitor.com.
About Polaris Operating, LLC
Polaris Operating, LLC and affiliates are privately held
independent oil and gas companies focused on acquiring, optimizing
and developing conventional oil and gas properties with
re-development and new development opportunities. The Debtors' core
area of operations is in the Texas Panhandle, specifically in
Moore, Potter and Roberts counties, where they own and operate
hundreds of shallow oil and gas wells with a significant amount
infrastructure including gathering systems, power lines, disposal
wells, workover rigs and water trucks.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 23-32810) on July
28, 2023. In the petition signed by Christopher Czuppon, chief
executive officer, the Debtor disclosed up to $50 million in both
assets and liabilities.
Judge Christopher M. Lopez oversees the case.
OKIN ADAMS BARTLETT CURRY LLP represents the Debtor as counsel.
DONLIN, RECANO & COMPANY, INC. is the notice, claims and balloting
agent.
POLK AZ: Trustee Taps Osborn Maledon as Legal Counsel
-----------------------------------------------------
Christopher Simpson, the Chapter 11 trustee for Polk AZ, LLC,
received approval from the U.S. Bankruptcy Court for the District
of Arizona to hire the law firm of Osborn Maledon, P.A. as his
counsel.
The firm's services include:
a) Assisting the trustee in seeking court approval of a
potential sale of the real property and related bidding
procedures;
b) Assisting the trustee in seeking court approval for the
retention of a broker and other professionals;
c) Assisting the trustee in the analysis of any actions under
Chapter 5 of the Bankruptcy Code, or otherwise arising under state
law;
d) Litigating any such claims the trustee deems necessary to
the administration of the estates;
e) Assisting the trustee in any objections to claims if
necessary;
f) Assisting the trustee with the preparation of any plan of
reorganization or liquidation; and
g) Other related legal services.
The firm will be paid at these rates:
Warren J. Stapleton, Esq. $450 per hour
Attorneys $250 to $800 per hour
Paralegals $165 to $235 per hour
In addition, the firm will receive reimbursement for out-of-pocket
expenses incurred.
Warren Stapleton, Esq., a partner at Osborn Maledon, disclosed in a
court filing that his firm is a "disinterested person" according to
Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Warren J. Stapleton, Esq.
Osborn Maledon, P.A.
2929 North Central Avenue, Suite 2000
Phoenix, AZ 85012-2793
Tel: (602) 640-9000
Fax: (602) 640-9050
Email: wstapleton@omlaw.com
About Polk AZ
Polk AZ, LLC sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D. Ariz. Case No. 23-02396) on April 16, 2023, with $1
million to $10 million in both assets and liabilities. Judge
Eddward P. Ballinger, Jr. oversees the case.
The Debtor tapped Warren J. Stapleton, Esq., at Osborn Maledon,
P.A. as legal counsel.
Christopher C. Simpson, the Chapter 11 trustee, is represented by
Osborn Maledon, P.A.
POST HOLDINGS: Egan-Jones Retains B Senior Unsecured Ratings
------------------------------------------------------------
Egan-Jones Ratings Company on August 7, 2023, maintained its 'B'
foreign currency and local currency senior unsecured ratings on
debt issued by Post Holdings Inc. EJR also withdraws rating on
commercial paper issued by the Company.
Headquartered in St. Louis, Missouri, Post Holdings Inc. operates
as a holding company.
POWER BRANDS: Seeks to Hire Goe Forsythe & Hodges as Legal Counsel
------------------------------------------------------------------
Power Brands Consulting, LLC seeks approval from the U.S.
Bankruptcy Court for the Central District of California to hire Goe
Forsythe & Hodges, LLP as its bankruptcy counsel.
The Debtor requires legal counsel to:
a. advise and assist the Debtor with respect to compliance
with the requirements of the Office of the U.S. Trustee;
b. advise the Debtor regarding matters of bankruptcy law,
including the rights and remedies of Debtor with respect to its
assets and claims of creditors;
c. represent the Debtor in any proceedings or hearings in the
bankruptcy court and in any action in any other court where its
rights under the Bankruptcy Code may be litigated or affected;
d. conduct examinations of witnesses, claimants or adverse
parties, and assist in the preparation of reports, accounts, and
pleadings related to the case;
e. advise the Debtor concerning the requirements of the
Bankruptcy Code and applicable rules;
f. assist the Debtor in negotiation, formulation,
confirmation, and implementation of a Chapter 11 plan of
reorganization;
g. make any bankruptcy court appearances on behalf of the
Debtor; and
h. perform such other services as the Debtor may require of
the firm in connection with its Chapter 11 case.
The firm will be paid at these rates:
Attorneys $385 to $595 per hour
Of Counsel $385 to $625 per hour
Paralegals $185 to $195 per hour
In addition, the firm will receive reimbursement for out-of-pocket
expenses incurred.
The firm received a pre-bankruptcy retainer of $50,000.
Robert Goe, Esq., a partner at Goe Forsythe & Hodges, disclosed in
a court filing that his firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Robert P. Goe, Esq.
Goe Forsythe & Hodges, LLP
17701 Cowan, Suite 210
Irvine, CA 92614
Telephone: (949) 798-2460
Facsimile: (949) 955-9437
Email: rgoe@goeforlaw.com
About Power Brands Consulting
Power Brands Consulting, LLC is a beverage startup specialist that
helps design and develop packaging, create a recipe for new drink
and manufacture and market test new products.
Power Brands Consulting filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. C.D. Calif. Case
No. 23-10993) on July 15, 2023. The petition was signed by Darin
Ezra as chief executive officer. At the time of filing, the Debtor
estimated $1 million to $10 million in both assets and liabilities.
Judge Martin R. Barash presides over the case.
Robert P. Goe, Esq., at Goe Forsythe & Hodges, LLP represents the
Debtor as counsel.
PROFESSIONAL DIVERSITY: Incurs $1.4 Million Net Loss in 2nd Quarter
-------------------------------------------------------------------
Professional Diversity Network, Inc. filed with the Securities and
Exchange Commission its Quarterly Report on Form 10-Q disclosing a
net loss attributable to the Company of $1.41 million on $1.84
million of total revenues for the three months ended June 30, 2023,
compared to net income attributable to the Company of $91,063 on
$2.19 million of total revenues for the three months ended June 30,
2022.
For the six months ended June 30, 2023, the Company reported a net
loss attributable to the Company of $2.48 million on $3.79 million
of total revenues compared to a net loss attributable to the
Company of $612,202 on $4.25 million of total revenues for the six
months ended June 30, 2022.
"Our industry has seen the continued slowing through the second
quarter of 2023. We have seen some hiring come back as seasonal
industries begin to ramp up and we are poised to take advantage of
this. We have created an internal marketing department which is
focused on strategic targeting of industries and we have seen some
of our new efforts paying off already," said Adam He, CEO of
Professional Diversity Network. "Through the completion of our
equity line of credit transaction with Tumim Stone Capital LLC, we
are in a solid cash position for the remainder of this year and the
foreseeable future, where we are looking to take advantage of our
position as one of the leaders in diversity recruiting."
As of June 30, 2023, the Company had $8.45 million in total assets,
$5.09 million in total liabilities, and $3.36 million in total
stockholders' equity.
At June 30, 2023, the Company's principal sources of liquidity were
its cash and cash equivalents.
The Company had an accumulated deficit of $100,864,047 at June 30,
2023. During the six months ended June 30, 2023, the Company
generated a loss from continuing operations, net of tax, of
$2,541,041. During the six months ended June 30, 2023, the Company
used cash in continuing operations of $878,967. At June 30, 2023,
the Company had a cash balance of $2,206,677. Total revenues were
approximately $3,796,000 and $4,248,000 for the six months ended
June 30, 2023 and 2022. The Company had a working capital deficit
from continuing operations of approximately $226,000 and $187,000
at June 30, 2023 and Dec. 31, 2022.
Professional Diversity said, "These conditions raise substantial
doubt about its ability to continue as a going concern. The
ability of the Company to continue as a going concern is dependent
on the Company's ability to further implement its business plan,
raise capital, and generate revenues. The consolidated financial
statements do not include any adjustments that might be necessary
if the Company is unable to continue as a going concern.
"Management believes that its available cash on hand and cash flow
from operations may be sufficient to meet our working capital
requirements for the fiscal period ending December 31, 2023,
however in order to accomplish our business plan objectives, the
Company will need to continue its cost reduction efforts, increase
revenues, raise capital through the issuance of common stock, issue
capital in relation to the aforementioned line of equity, or
through a strategic merger or acquisition. There can be no
assurances that our business plans and actions will be successful,
that we will generate anticipated revenues, or that unforeseen
circumstances will not require additional funding sources in the
future or require an acceleration of plans to conserve liquidity.
Future efforts to improve liquidity through the issuance of our
common stock may not be successful, or if available, they may not
be available on acceptable terms."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1546296/000149315223028601/form10-q.htm
About Professional Diversity
Headquartered in Chicago, Illinois, Professional Diversity Network,
Inc. -- https://www.prodivnet.com -- is a global developer and
operator of online and in-person networks that provides access to
networking, training, educational and employment opportunities for
diverse individuals. Through the Company's online platforms and
partnerships, the Company provides hiring employers a means to
identify and acquire diverse talent and assist them with DEI
efforts.
Professional Diversity reported a net loss attributable to the
company of $2.60 million for the year ended Dec. 31, 2022,
compared to a net loss attributable to the company of $2.75 million
for the year ended Dec. 31, 2021. As of March 31, 2023, the
Company had $6.83 million in total assets, $4.70 million in total
liabilities, and $2.12 million in total stockholders' equity.
Oak Brook, Illinois-based Sasetti LLC, the Company's auditor since
2022, issued a "going concern" qualification in its report dated
March 31, 2023, citing that the Company has incurred recurring
operating losses, has a significant accumulated deficit, and will
need to raise additional funds to meet its obligations and the
costs of its operations. These conditions raise substantial doubt
about the Company's ability to continue as a going concern.
PROJECT NEPTUNE: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: Project Neptune, LLC
DBA Just LDS
DBA Latter Day Travel
DBA CruiseBuilder
DBA VacationBuilder
DBA Jungle Reef Tours
DBA Come Sail Away
DBA Renew
DBA www.costacruisepack.com
3731 West 10400 South, Suite 102-417
South Jordan, UT 84009
Business Description: The Debtor offers travel arrangement and
reservation services.
Chapter 11 Petition Date: August 25, 2023
Court: United States Bankruptcy Court
District of Utah
Case No.: 23-23695
Judge: Hon. Peggy Hunt
Debtor's Counsel: Mark C. Rose, Esq.
MCKAY, BURTON & THURMAN, P.C.
15 West South Temple
Suite 1000
Salt Lake City, UT 84101
Tel: 801-251-4135
Fax: 801-521-4252
Email: mrose@mbt-law.com
Total Assets as of August 22, 2023: $471,978
Total Liabilities as of August 22, 2023: $3,532,278
The petition was signed by Wes Cobos as president.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/7JV7C2Y/Project_Neptune_LLC__utbke-23-23695__0001.0.pdf?mcid=tGE4TAMA
PROPERTY ADVOCATES: Case Summary & 8 Unsecured Creditors
--------------------------------------------------------
Debtor: The Property Advocates, P.A.
f/k/a The Strems Law Firm
2525 Ponce De Leon Blvd, Suite 600
Coral Gables, FL 33134
Business Description: The Property Advocates, P.A. is a full-
service insurance law firm that helps
Floridians resolve complicated and
contentious property insurance claims.
Chapter 11 Petition Date: August 25, 2023
Court: United States Bankruptcy Court
Southern District of Florida
Case No.: 23-16797
Judge: Hon. Robert A. Mark
Debtor's Counsel: Paul N. Mascia, Esq.
NARDELLA & NARDELLA, PLLC
135 W. Central Blvd
Suite 300
Orlando, FL 32801
Tel: 407-966-2680
Email: pmascia@nardellalaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Hunter Patterson as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's eight unsecured creditors is available for
free at PacerMonitor.com at:
https://www.pacermonitor.com/view/FROKW5Y/The_Property_Advocates_PA__flsbke-23-16797__0001.0.pdf?mcid=tGE4TAMA
PROVECTUS BIOPHARMACEUTICALS: Incurs $835K Net Loss in 2nd Quarter
------------------------------------------------------------------
Provectus Biopharmaceuticals, Inc. filed with the Securities and
Exchange Commission its Quarterly Report on Form 10-Q disclosing
a net loss of $835,062 on $161,842 of grant revenue for the three
months ended June 30, 2023, compared to a net loss of $1.08 million
on $321,710 of grant revenue for the three months ended June 30,
2022.
For the six months ended June 30, 2023, the Company reported a net
loss of $1.66 million on $366,867 of grant revenue compared to a
net loss of $2.11 million on $509,315 of grant revenue for the six
months ended June 30, 2022.
As of June 30, 2023, the Company had $1.68 million in total assets,
$8.98 million in total liabilities, and a total stockholders'
deficit of $7.30 million.
Provectus said, "The Company continues to incur significant
operating losses. Management expects that significant on-going
operating expenditures will be necessary to successfully implement
the Company's business plan and develop and market its products.
These circumstances raise substantial doubt about the Company's
ability to continue as a going concern within one year after the
date that these unaudited condensed consolidated financial
statements are issued. Implementation of the Company's plans and
its ability to continue as a going concern will depend upon the
Company's ability to develop PV-10, PH-10, and/or any other
halogenated xanthene-based drug products, and to raise additional
capital."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/315545/000149315223028230/form10-q.htm
About Provectus
Provectus Biopharmaceuticals, Inc. is a clinical-stage
biotechnology company developing immunotherapy medicines based on
a
family of small molecules called halogenated xanthenes. The
Company's lead HX molecule is rose bengal sodium.
Provectus reported a net loss of $3.55 million for the year ended
Dec. 31, 2022, compared to a net loss of $5.54 million for the year
ended Dec. 31, 2021. As of Dec. 31, 2022, the Company had $2.04
million in total assets, $8.26 million in total liabilities, and a
total stockholders' deficit of $6.23 million.
Los Angeles, CA-based Marcum LLP, the Company's auditor since 2016,
issued a "going concern" qualification in its report dated March
29, 2023, citing that the Company has a significant working capital
deficit, 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.
QUICK DRY: Seeks Cash Collateral Access
---------------------------------------
Quick Dry Carpet Cleaning, LLC d/b/a Quick Dry Restoration asks the
U.S. Bankruptcy Court for the Western District of Texas, Austin
Division, for authority to use cash collateral in accordance with
the budget, with a 10% variance, for the period from August 15 to
September 22, 2023.
The Debtor requires the use of on-deposit funds and the use of any
proceeds generated to operate as a going concern during the
bankruptcy case.
The Debtor estimates that the value as of the Petition Date, of the
cash in its accounts that may be considered to "cash collateral" as
defined in 11 U.S.C. Section 363(a) was up to $17,331.
As adequate protection, the Debtor offers:
a. Any other creditor holding a perfected pre-petition lien on
the Debtor's cash will be granted a replacement lien pursuant to 11
U.S.C. Section 361(2), solely to the extent cash collateral is
used, in all cash the Debtor acquires or generates after the
Petition Date, but solely to the same extent and priority as
existed pre-petition and subject to a determination by the Court
thatany such creditor holds a fully perfected, enforceable
prepetition lien on cash;
b. The Replacement Lien will not attach to Chapter 5 actions
of the Debtor or the proceeds of the recovery upon such actions;
c. Except for post-petition cash generated from operations,
the Replacement Lien will not attach to any unencumbered property
of the Debtor, if any, or the proceeds from any sale of any
unencumbered property, and the proceeds from any sale of any
unencumbered property shall be deposited into a separate
unencumbered account and, absent further order of the Court, will
not be subject to the Replacement Lien;
d. The Replacement Lien will not apply to any reduction in
cash value caused from the payment of an expense that is later
surcharged against any creditor's collateral based on 11 U.S.C.
Section 506(c);
e. Subject to the limiting conditions on the Replacement Lien,
the Replacement Lien will be binding upon any subsequently
appointed Chapter 11 or Chapter 7 trustee;
f. The cash will be used to continue the Debtor's operations
and therefore maintain the going concern value of the aggregate of
any creditors' collateral; as such, the use of cash will be
regulated by a pre-approved budget to assure that appropriate
operating expenses are being paid and that no inappropriate expense
is paid;
g. The Debtor intends to seek a provision in the final Cash
Collateral Order providing a carve-out for approved estate
professionals, including but not limited to the Debtor's counsel
and the Subchapter V trustee.
A copy of the motion is available at https://urlcurt.com/u?l=fkUEgc
from PacerMonitor.com.
About Quick Dry Carpet Cleaning LLC
Quick Dry Carpet Cleaning LLC is a full-service restoration company
in Austin, Texas, serving residential or commercial clients.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Tex. Case No. 23-10638) on August 16,
2023.
In the petition signed by Penny Lane, president & manager, the
Debtor disclosed $10 million in both assets and liabilities.
Todd Headden, Esq., at Hayward PLLC, represents the Debtor as legal
counsel.
R & E PETROLEUM: Unsecureds to Get 70 Cents on Dollar in Plan
-------------------------------------------------------------
R & E Petroleum, LLC, submitted an Amended Plan of Reorganization
under Subchapter V dated August 17, 2023.
The Plan proposes to pay creditors from cash on hand and future
income.
The Debtor submits that the Plan is feasible. As of the Petition
Date, Debtor had $93,280 cash in its bank accounts, plus
approximately $150,000 held in the state court registry to cover
rent owed on its closed 1020 Bridge City location. Cash plus
future revenues will provide sufficient monies to pay amounts due
on the Effective Date and future payments to creditors.
Non-priority unsecured creditors holding allowed claims will
receive distributions, which the proponent of this Plans has valued
at approximately 70 cents on the dollar. This Plan also provides
for the payment of administrative and priority claims.
Class 3 consists of the Claims of Holders of General Unsecured
Claims. Debtor estimates that Class 3 Claims as follows:
* LKM Convenience, L.L.C. (Proof of Claim No. 3, Amended):
Claim in the amount of $525,056.12. On March 17, 2023, Debtor filed
an Objection to Claim No. 3 Filed by LKM Convenience, LLC. Per the
objection, the amount of the Claim should be calculated based on
Section 502(b)(6) of the Bankruptcy Code, and assumption that
surrender of the lease premises occurred on or about the time of
filing of the Bridge City Lawsuit, and no later than August, 2021,
time Hurricane Ida destroyed the 1020 Bridge City location.
Further, the Judgment recorded with the Clerk of Court for the
Parish of Jefferson, State of Louisiana, Instrument No. 7062174,
Mortgage Book 4972 Page 895 in favor of LKM Convenience, LLA and
against Debtor (sometimes referred to as the "LKM Convenience
Judgment") shall be extinguished, released and discharged because
there exists no unencumbered assets for the LKM Convenience
judgment to attach to, as Debtor has no immovable property. LKM
Convenience, L.L.C. has no lien on Debtor's movable assets by
virtue of the LKM Convenience Judgment.
* Entergy (POC No. 4): General Unsecured Claim in the amount
of $17,795.57.
* SBA deficiency claim in the amount of $351,216.
Holders of Allowed General Unsecured Claims shall receive their
pro rata share of:
* Projected Disposable Income of $11,610.00 per quarter or
such other amount determined by the Bankruptcy Court at the
Confirmation Hearing. Pro rata share of projected disposable income
shall be paid quarterly, with the first installment commencing on
October 1, 2023, and payable on the first day of each calendar
quarter thereafter, with the final payment due on July 1, 2025.
* Net proceeds from the State Court Escrow, which shall be
paid no later than August 31, 2025. The funds shall be held in
Debtor's counsel Trust Account for purposes of paying
administrative expense claims pursuant to the terms and conditions
of this Plan, with the surplus paid to Class 3 no later than August
31, 2025.
* Net proceeds from Retained Causes of Action.
Class 4 consists of Allowed General Unsecured Claims in an amount
less than $5,000 or those that reduce their claims to $5,000.
Holders of Allowed Class 4 Claims shall receive the full amount of
their Allowed Claim within 30 days of the Effective Date. Subject
to the right of Allowed General Unsecured Claims to opt to be
treated as a Class 4 Claim, the only Class 4 Claim is held by the
United States Department of Treasury, Internal Revenue Service, in
the amount of $4,439.87.
Class 5 consists of the Claim of Aridi Consulting LLC in the amount
of $650,000. Holders of Insider Claims shall not receive any
distributions under the Plan.
Class 6 consists of the rights, title and equity interests in the
Debtor. Ragheb "Ray" Chaar and Elsie Chaar and shall retain their
existing Interests in the Debtor.
The Debtor intends to reorganize with its Cash on hand as of the
Effective Date and cash flow from future operations. All payments
shall be paid directly to the claimant or Creditor by the Debtor.
Projected Disposable Income over the 22-month life of the Plan is
$85,142.00, or $3,870.10 per month $11,610.00 per quarter.
A full-text copy of the Amended Subchapter V Plan dated August 17,
2023 is available at https://urlcurt.com/u?l=URBtYj from
PacerMonitor.com at no charge.
Counsel for the Debtor:
Leo D. Congeni, Esq.
Congeni Law Firm, LLC
424 Gravier Street
New Orleans, LA 70130
Tel: (504) 522-4848
Fax: (504) 581-4962
Email: leo@congenilawfirm.com
About R & E Petroleum
R & E Petroleum, LLC, is a Louisiana limited liability company that
operates a gas station and convenience store company located at 900
Bridge City Avenue, Westwego, Louisiana 70094.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. La. Case No. 22-11087) on Sept. 20,
2022, with up to $50,000 in assets and up to $1 million in
liabilities. Ragheb Chaar, manager and member, signed the
petition.
Judge Meredith S. Grabill oversees the case.
The Debtor tapped Leo D. Congeni, Esq., at Congeni Law Firm, LLC as
bankruptcy counsel and Patrick Gros, CPA as accountant.
RADNOR RE 2023-1: DBRS Finalizes B Rating on Class B-1 Notes
------------------------------------------------------------
DBRS, Inc. finalized the following provisional ratings on the
Mortgage Insurance-Linked Notes, Series 2023-1 issued by Radnor Re
2023-1 Ltd. (RMIR 2023-1 or the Issuer):
-- $99.6 million Class M-1A at BB (high) (sf)
-- $82.3 million Class M-1B at BB (low) (sf)
-- $77.9 million Class M-2 at B (sf)
-- $21.7 million Class B-1 at B (sf)
The BB (high) (sf), BB (low) (sf), and B (sf) ratings reflect
5.35%, 4.40%, and 3.25% of credit enhancement, respectively.
Other than the specified classes above, DBRS Morningstar does not
rate any other classes in this transaction.
RMIR 2023-1 is Essent Guaranty, Inc.'s (Essent Guaranty or the
Ceding Insurer) ninth-rated mortgage insurance (MI)-linked note
(MILN) transaction. The Notes are backed by reinsurance premiums,
eligible investments, and related account investment earnings, in
each case relating to a pool of MI policies linked to residential
loans. The Notes are exposed to the risk arising from losses the
Ceding Insurer pays to settle claims on the underlying MI policies.
As of the cut-off date, the pool of insured mortgage loans consists
of 133,879 fully amortizing first-lien fixed- and variable-rate
mortgages underwritten primarily to a full documentation standard
with original loan-to-value ratios (LTVs) less than or equal to
100%, which have never been reported to the Ceding Insurer as 60 or
more days delinquent, and have not been reported to be in a payment
forbearance plan as of the cut-off date. The mortgage loans have MI
policies effective on or after August 2022 and on or before June
2023.
On March 1, 2020, a new master policy was introduced to conform to
the government-sponsored enterprises' revised rescission relief
principles under the Private Mortgage Insurer Eligibility
Requirements (PMIERs) guidelines. All of the mortgage loans are
insured under the new master policy.
On the Closing Date, the Issuer will enter into the Reinsurance
Agreement with the Ceding Insurer. As per the agreement, the Ceding
Insurer will get protection for the funded portion of the MI
losses. In exchange for this protection, the Ceding Insurer will
make premium payments related to the underlying insured mortgage
loans to the Issuer.
The Issuer is expected to use the proceeds from the sale of the
Notes to purchase certain eligible investments that will be held in
the reinsurance trust account. The eligible investments are
restricted to Aaa-mf by Moody's or AAAm by S&P rated U.S. Treasury
money-market funds and securities. Unlike other residential
mortgage-backed security (RMBS) transactions, cash flow from the
underlying loans will not be used to make any payments; rather, in
MILN transactions, a portion of the eligible investments held in
the reinsurance trust account will be liquidated to make principal
payments to the noteholders and to make loss payments to the Ceding
Insurer when claims are settled with respect to the MI policy.
The Issuer will use the investment earnings on the eligible
investments, together with the Ceding Insurer's premium payments,
to pay interest to the noteholders.
The calculation of principal payments to the Notes will be based on
the reduction in aggregate exposed principal balance on the
underlying MI policy that is allocated to the Notes. The
subordinate Notes will receive their pro rata share of available
principal funds if the minimum credit enhancement test and the
delinquency test are satisfied. The minimum credit enhancement test
has been set to fail at the closing date, thus locking out the
rated classes from initially receiving any principal payments until
the subordinate percentage grows to 7.00% from 6.50%. The
delinquency test will be satisfied if the three-month average of
60+ days delinquency percentage is below 75% of the subordinate
percentage. Additionally, if these performance tests are met and
subordinate percentage is greater than 7.00%, then the subordinate
Notes will be entitled to accelerated principal payments equal to
two times the subordinate principal reduction amount, until the
subordinate percentage comes down to the target Credit Enhancement
of 7.00%. See the Cash Flow Structure and Features section of the
related report for more detail.
The coupon rates for the Notes issued by RMIR 2023-1 are based on
the Secured Overnight Financing Rate (SOFR). There are replacement
provisions in place in the event that SOFR is no longer available;
please see the Offering Circular for more details. DBRS Morningstar
did not run interest rate stresses for this transaction, as the
interest is not linked to the performance of the underlying loans.
Instead, interest payments are funded via (1) premium payments that
the Ceding Insurer must make under the reinsurance agreement and
(2) earnings on eligible investments.
On the Closing Date, the Ceding Insurer will establish a cash and
securities account, the premium deposit account. In case of the
Ceding Insurer's default in paying coverage premium payments to the
Issuer, the amount available in this account will be used to make
interest payments to the noteholders. The premium deposit account
will not be funded at closing. Please refer to the related report
for more details.
RMIR 2023-1 transaction is issued with a 10-year term. The Notes
are scheduled to mature on July 25, 2033, but are subject to early
redemption at the option of the Ceding Insurer (1) for a 10%
clean-up call or (2) on or following the payment date in July 2028,
among others. The Notes are also subject to mandatory redemption
before the scheduled maturity date upon the termination of the
Reinsurance Agreement. Additionally, there is a provision for the
Ceding Insurer to issue a tender offer to reduce all or a portion
of the outstanding Notes.
Essent Guaranty will be the Ceding Insurer. The Bank of New York
Mellon (rated AA (high) with a Stable trend by DBRS Morningstar)
will act as the Indenture Trustee, Paying Agent, Note Registrar,
and Reinsurance Trustee.
Notes: All figures are in U.S. dollars unless otherwise noted.
REAL BRANDS: Incurs $188K Net Loss in Second Quarter
----------------------------------------------------
Real Brands Inc. filed with the Securities and Exchange Commission
its Quarterly Report on Form 10-Q disclosing a net loss of $188,443
on $20,250 of total revenue for the three months ended June 30,
2023, compared to a net loss of $246,671 on $757 of total revenue
for the three months ended June 30, 2022.
For the six months ended June 30, 2023, the Company reported a net
loss of $941,020 on $42,497 of total revenue compared to a net loss
of $512,778 on $7,610 of total revenue for the six months ended
June 30, 2022.
As of June 30, 2023, the Company had $1.24 million in total assets,
$2.28 million in total liabilities, and a total stockholders'
deficit of $1.04 million.
Real Brands said, "Since our inception, we have raised capital
through the public and private sale of debt and equity and funding
from collaborative arrangements. At June 30, 2023, we had cash of
$122,252 and a negative working capital of $2,065,962.
"We will be required to raise additional funds through public or
private financing, additional collaborative relationships or other
arrangements. We cannot be certain that our existing and available
capital resources will be sufficient to satisfy our funding
requirements through 2023. We are evaluating various options to
raise additional funds, including new equity and loans and no
assurance can be given that we will be successful.
"The above factors raise substantial doubt about our ability to
continue as a going concern."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1084133/000126493123000046/realq22023.htm
About Real Brands
Headquartered in North Providence, RI, Real Brands Inc. is a
publicly traded, vertically integrated, early entrant (2017) in
the hemp-derived cannabinol ("CBD") market that specializes in hemp
CBD oil/isolate extraction, wholesaling of CBD oils and isolate,
manufacturing, production and sales of hemp-derived CBD consumer,
celebrity brands, and white label products.
Real Brands Inc. reported a net loss of $905,944 for the year ended
Dec. 31, 2022, compared to a net loss of $2.79 million for the year
ended Dec. 31, 2021. As of Dec. 31, 2022, the Company had $1.16
million in total assets, $1.91 million in total liabilities, and a
total stockholders' deficit of $752,895.
Houston, TX-based M&K CPAS, PLLC, the Company's auditor since 2023,
issued a "going concern" qualification in its report dated April
28, 2023, citing that the Company has recurring net losses and
negative cash flows from operations which raises substantial doubt
about its ability to continue as a going concern.
REMOTEMD LLC: Unsecured Claims Under $2,500 to Recover 41% in Plan
------------------------------------------------------------------
RemoteMD, LLC, filed with the U.S. Bankruptcy Court for the Eastern
District of Louisiana a Plan of Reorganization for Small Business.
The Debtor provides consulting services to assist corporate clients
with the development, implementation, and management of their
medical policies and procedures.
This Plan provides for the creation of a Litigation Trust. On the
Effective Date, the Reorganized Debtor on their own behalf and on
behalf of the holders of Allowed Claims, shall execute the
Litigation Trust Agreement. The entry of the confirmation order
shall include and constitute approval of the Litigation Trust
Agreement and authorization of the Debtor to execute the Litigation
Trust Agreement. In connection with the formation of the Litigation
Trust, the Reorganized Debtors shall transfer the Initial
Litigation Trust Funds to the Litigation Trust.
The final Plan payment is expected to be paid on or before the
second quarter of 2027.
The Plan proposes to pay holders of Allowed Claims the Debtor's
Projected Disposable Income which includes sums from future
services, future contracts, payments of the Remote Texas Note and
factoring its receivables. Further, the Plan anticipates additional
potential distributions to holders of Allowed Claims from the
collection, if any, by the Litigation Trustee of funds from the
Retained Causes of Action.
Class 2 consists of Allowed General Unsecured Claims allowed under
Section 502 of the Bankruptcy Code in an amount less than $2,500.00
or those that reduce their claims to $2,500.00. Pro rata payments
out of a fund of $10,000.00 to be paid quarterly in 8 equal
payments commencing commence on the first full quarter following
the Effective Date or until the claims are paid in full.
Estimated pro rata distribution is 41% for Class 1 exclusive of
claims that elect treatment under Class 1. The rate of distribution
may be altered based on holders of claims that elect Class 1
treatment. The holder of a Class 1 Claim is impaired and is
entitled to vote to accept or reject the Plan. Estimated amount is
$24,212.62 exclusive of creditors who elect Class 1 treatment.
Class 3 consists of General Unsecured Claims over $2,500.00. Twelve
Quarterly payments commencing on the at the end of the first full
quarter that is six full months following the Effective Date for a
total of 3 years of payments. Estimate distribution is 13.5% to
15.2% for Class 2. The rate of distribution may be altered based on
the results of any objections filed by the Litigation Trustee that
are sustained. Estimated Amount range is $7,373,164.89 to
$6,542,644.00. The holders of Class 2 Allowed General Unsecured
Claims are Impaired.
Class 3 equity security holder, which consists solely of Dr.
Michael Kotler, will not be impaired by this Plan. The Class
3equity security holder will continue to own 100% of the
reorganized Debtor.
A full-text copy of the Plan of Reorganization dated August 17,
2023 is available at https://urlcurt.com/u?l=0oLsvL from
PacerMonitor.com at no charge.
Counsel for the Debtor:
Douglas S. Draper, Esq.
Leslie A. Collins, Esq.
Greta M. Brouphy, Esq.
Michael E. Landis, Esq.
Heller, Draper, Patrick, Horn & Manthey, LLC
650 Poydras Street, Suite 2500
New Orleans, LA 70130
Phone: (504) 299-3300
Email: ddraper@hellerdraper.com
lcollins@hellerdraper.com
gbrouphy@hellerdraper.com
mlandis@hellerdraper.com
About RemoteMD LLC
On Oct. 18, 2022, Robert Dudley, Premier Laboratory Services, Inc.,
Steele Strategies, Inc., Securitas Security Services USA, Inc. and
KJG Strategies, filed an involuntary petition against RemoteMD,
LLC. On Nov 4, 2022, the court entered the order converting the
involuntary bankruptcy case to a case under Chapter 11 of the
Bankruptcy Code.
RemoteMD filed an amended voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. E.D. La. Case No.
22-11254) on Nov. 7, 2022. Judge John W. Kolwe oversees the case.
The Debtor tapped Douglas S. Draper, Esq. at the law firm of
Heller, Draper & Horn, LLC as legal counsel and Cooper CPA Group as
accountant.
ROYALE ENERGY: Posts $1 Million Net Loss in Second Quarter
----------------------------------------------------------
Royale Energy, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $1.04 million on $528,885 of total revenues for the three months
ended June 30, 2023, compared to a net loss of $260,502 on $687,155
of total revenues for the three months ended June 30, 2022.
For the six months ended June 30, 2023, the Company reported a net
loss of $33,031 on $1.10 million of total revenues compared to a
net loss of $312,853 on $1.20 million of total revenues for the six
months ended June 30, 2022.
As of June 30, 2023, the Company had $11.75 million in total
assets, $21.20 million in total liabilities, $24.02 million in
mezzanine equity, and a total stockholders' deficit of $33.47
million.
Royale said, "The primary sources of liquidity have historically
been issuances of common stock, oil and gas sales through ongoing
operations and the sale of oil and gas properties. There are
factors that give rise to substantial doubt about our ability to
meet liquidity demands, and we anticipate that our primary sources
of liquidity will be from the issuance of debt and/or equity, the
sale of oil and natural gas property participation interests
through our normal course of business and the sale of non-strategic
assets.
"At June 30, 2023, our consolidated financial statements reflect a
working capital deficiency of $6,984,331. We had net losses of
$1,035,375 and $33,031 for the three and six months ended June 30,
2023, respectively. This indicates that there is substantial doubt
about our ability to continue as a going concern.
"Management's plans to alleviate the going concern by implementing
cost control measures that include, among other things, the
reduction of overhead costs, the sale of non-strategic assets, and,
if possible, obtaining additional financing. There is no assurance
that additional financing will be available when needed or that we
will be able to obtain any financing on terms acceptable to us and
whether we will become profitable and generate positive operating
cash flow. If we are unable to raise sufficient additional funds,
we will have to develop and implement a plan to further extend
payables, attempt to extend note repayments, and reduce overhead
until sufficient additional capital is raised to support further
operations. There can be no assurance that such a plan will be
successful."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1694617/000118518523000835/royaleinc20230630_10q.htm
About Royale
El Cajon, CA-based Royale Energy, Inc. -- http://www.royl.com-- is
an independent oil and natural gas producer. Royale's principal
lines of business are the production and sale of oil and natural
gas, acquisition of oil and gas lease interests and proved
reserves, drilling of both exploratory and development wells, and
sales of fractional working interests in wells to be drilled by
Royale. Since 1993, Royale has primarily acquired and developed
producing and non-producing natural gas properties in California.
In December 2018, Royale became the operator of a newly acquired
field in Texas. The most significant factors affecting the results
of operations are (i) changes in oil and natural gas prices,
production levels and reserves, (ii) turnkey drilling activities,
and (iii) the increase in future cost associated with abandonment
of wells.
Royale Energy reported a net loss of $145,594 for the year ended
Dec. 31, 2022, compared to a net loss of $3.60 million for the year
ended Dec. 31, 2021. As of Dec. 31, 2022, the Company had $11.78
million in total assets, $21.30 million in total liabilities,
$23.61 million in mezzanine equity, and a total stockholders'
deficit of $33.14 million.
Ridgeland, Mississippi-based HORNE LLP, the Company's auditor since
2023, issued a "going concern" qualification in its report dated
May 19, 2023, citing that the Company has suffered recurring losses
from operations and its total liabilities exceed its total assets.
This raises substantial doubt about the Company's ability to
continue as a going concern.
RYAN SPECIALTY: Moody's Alters Outlook on 'B1' CFR to Positive
--------------------------------------------------------------
Moody's Investors Service has affirmed the B1 corporate family
rating and B1-PD probability of default rating of Ryan Specialty,
LLC. The rating agency has also affirmed Ryan Specialty's $600
million (undrawn) senior secured first-lien revolving credit
facility maturing in July 2026 at B1, $1.65 billion ($1.60 billion
outstanding) senior secured first-lien term loan maturing in
September 2027 at B1 and $400 million senior secured first-lien
notes maturing in February 2030 at B1.
Moody's has changed Ryan Specialty's rating outlook to positive
from stable based on the company's steady revenue growth and
healthy EBITDA margins along with Moody's expectation that the
company will maintain its financial leverage around current
levels.
RATINGS RATIONALE
Moody's said the rating affirmation reflects Ryan Specialty's
strong presence in specialty insurance brokerage, broad
diversification across clients and carriers, healthy EBITDA margins
and good free cash flow. Since its IPO in July 2021, the company
has reported organic revenue growth in the mid-teens to low 20s
driven by heightened demand for specialty insurance products, a
continuing shift of business from the standard market into the
excess and surplus lines market, and rising property & casualty
insurance rates, especially for property coverages.
Tempering these strengths are the company's significant financial
leverage, integration risk associated with acquisitions, and
potential liabilities arising from errors and omissions, a risk
inherent in professional services.
For the 12 months through June 2023, Ryan Specialty reported total
revenues of nearly $1.9 billion supported by organic growth and
acquisitions. EBITDA margins declined slightly as a result of
investments in the business as well as rising travel and
entertainment expenses.
Moody's said the positive outlook reflects Ryan Specialty's strong
organic growth and good EBITDA margins. The company is investing in
its infrastructure and gaining efficiencies through its
restructuring program to improve EBITDA margins. The rating agency
expects the company to continue making acquisitions, including
through deployment of cash and equivalents on the balance sheet
which amounted to $966 million as of June 30, 2023.
Moody's expects that Ryan Specialty will maintain a debt-to-EBITDA
ratio in the range of 4x-5x (per Moody's calculations), with
(EBITDA - capex) interest coverage around 3.5x, and a
free-cash-flow-to-debt ratio in the low double digits. These
metrics incorporate Moody's accounting adjustments for operating
leases and deferred earnout obligations.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Factors that could lead to an upgrade of Ryan Specialty's ratings
include: (i) continued profitable growth, (ii) debt-to-EBITDA ratio
at or below 4.5x, (iii) (EBITDA - capex) coverage of interest
exceeding 3.5x, and (iv) free-cash-flow-to-debt ratio exceeding
8%.
Factors that could lead to a stable rating outlook include: (i)
debt-to-EBITDA ratio above 4.5x, (ii) (EBITDA - capex) coverage of
interest below 3.5x, (iii) delay or disruption in integration of
acquired operations, or (iv) free-cash-flow-to-debt ratio below
8%.
The principal methodology used in these ratings was Insurance
Brokers and Service Companies published in June 2018.
Founded in 2010 and based in Chicago, Illinois, Ryan Specialty is a
specialty insurance broker providing wholesale brokerage, binding
authority and managing general underwriting services for insurance
brokers, agents and carriers mainly in the US and also in Canada,
the UK and Europe. The company generated revenue of $1.9 billion
and net income of $195 million during the 12 months ended June 30,
2023.
S&G HOSPITALITY: Court OKs Interim Cash Collateral Access
---------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Ohio,
Eastern Division, authorized S&G Hospitality, Inc., et al to use
cash collateral on an interim basis in accordance with the budget,
with a 10% variance.
On or before the fifth day of each month in the Budget Period, the
Debtors will make a payment to RSS of $93,390. RSS will apply each
of the Debtors' payments for escrows to the respective escrowed
account, but may allocate payments for RSS' obligations to
interest, principal, special servicing fees, legal fees and costs
due in such manner as RSS deems appropriate in accordance with its
loan documents, provided, however, that any such internal
allocation by the RSS will not bind the Court in determining the
allowed amount or the value of the RSS's collateral.
As adequate protection for any diminution in the value of the Small
Business Administration's asserted interests in the cash
collateral, the Debtors will also make scheduled nonaccelerated
payments of principal and interest to the Small Business
Administration.
As adequate protection for any diminution in the value of Itria's
asserted interest in the cash collateral, the Debtors will pay
Itria $3,000 per month and Mr. Vasani and the nondebtor entities he
controls will in aggregate make an additional payment of $1,000 to
Itria.
As adequate protection for any post-petition diminution in value of
the interests of RSS, the SBA, and Itria's interests in the
prepetition assets of the Debtors, each entity is granted an
administrative expense claim against the Debtor's estates for the
full amount of such diminution, in accordance with 11 U.S.C.
Section 507(b).
These events constitute an "Event of Default":
(a) the case is either dismissed or converted to a case under
Chapter 7 of the Bankruptcy Code;
(b) a trustee or examiner with expanded powers is appointed in
the Case;
(c) any of the Debtors cease operations of their businesses or
takes any material action for the purpose of effecting such
cessation without the prior written consent of RSS or filing a
Motion with the Court seeking to do so;
(d) the Interim Order is reversed, vacated, stayed, amended,
supplemented or otherwise modified in a manner which will
materially and adversely affect the rights of RSS or will
materially and adversely affect the priority of any or all of RSS's
claims, liens or security interests and which is not acceptable to
the RSS;
(e) the Court will not have entered a further interim order on
the Motion or a Final Order on or before the last day of the Budget
Period covered by the Interim Order;
(f) the Debtors' failure to comply with or perform the terms
and provisions of the Interim Order or any prior interim order
entered in regard to the Motion, in strict adherence to the time
period set forth therein;
(g) any superpriority claim or lien equal or superior in
priority to that granted to the parties being provided Adequate
Protection pursuant to the Interim Order or permitted thereunder
will be granted;
(h) the automatic stay of 11 U.S.C. Section 362 is lifted so
as to allow a party other than the RSS to proceed against any
material asset of the Debtors.
A final hearing on the matter is set for September 26, 2023 at 2:30
p.m.
A copy of the order is available at https://urlcurt.com/u?l=v2Z1Yh
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 liabilities.
Judge Mina Nami Khorrami oversees the case.
David Beck, Esq., at Carpenter Lipps LLP, reprents the Debtor as
legal counsel.
S&W BLUE JAY: Taps The Agency, Nourmand & Associates as Brokers
---------------------------------------------------------------
S&W Blue Jay Way, LLC seeks approval from the U.S. Bankruptcy Court
for the Central District of California to hire The Agency Real
Estate and Nourmand & Associates as its real estate brokers.
The Agency and Nourmand & Associates, by and through their
respective associated salespersons, Cody Garcia and Myra Nourmand,
will co-list the Debtor's real property for sale. The property is
located at 1627-1633 Blue Jay Way, Los Angeles, Calif.
The total commission payable to Mr. Garcia and Ms. Nourmand will be
no more than 3 percent of the gross sale price for the property. If
the winning buyer is not represented by a buyer's broker, the 3
percent commission otherwise payable to the buyer's agent will be
credited back to the Debtor and may be given as a credit to the
buyer.
As disclosed in the court filings, the brokers are disinterested
within the meaning of Section 101(14) of the Bankruptcy Code.
The brokers can be reached through:
Cody Garcia
The Agency Real Estate
22601 Pacific Coast Highway, Suite 103
Malibu, CA 90265
Phone: (310) 579-1384
Email: cody.garcia@theagencyre.com
-- and --
Myra Nourmand
Nourmand & Associates
6525 Sunset Blvd., Suite #G2
Los Angeles, CA 90028
Phone: (310) 888-3333
Email: myranourmand@nourmand.com
About S&W Blue Jay Way
S&W Blue Jay Way is a Single Asset Real Estate (as defined in 11
U.S.C. Section 101(51B)).
S&W Blue Jay Way, LLC filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. C.D. Cal. Case No.
23-10672) on August 4, 2023. The petition was signed by Lisa
Strickland as authorized signatory on behalf of 1966 BJW, LLC, as
managing member of S&W Blue Jay Way, LLC. At the time of filing,
the Debtor estimated $10 million to $50 million in assets and $1
million to $10 million in liabilities.
Judge Ronald A. Clifford III presides over the case.
Roye Zur, Esq. at Elkins Kalt Weintraub Reuben Gartside LLP
represents the Debtor as counsel.
SACKS WESTON: Case Summary & 17 Unsecured Creditors
---------------------------------------------------
Debtor: Sacks Weston LLC
f/d/b/a Sacks Weston Millstein Diamond LLC
f/d/b/a Sacks Weston Diamond LLC
1845 Walnut Street
Suite 1600
Philadelphia, PA 19103
Chapter 11 Petition Date: August 25, 2023
Court: United States Bankruptcy Court
Eastern District of Pennsylvania
Case No.: 23-12540
Debtor's Counsel: David B. Smith, Esq.
SMITH KANE HOLMAN, LLC
112 Moores Road
Suite 300
Malvern, PA 19355
Tel: 610-407-7215
Email: dsmith@skhlaw.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $10 million to $50 million
The petition was signed by Andrew B. Sacks as manager.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/723DQAI/Sacks_Weston_LLC__paebke-23-12540__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's 17 Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. 1845 Walnut Rent Arrears $58,000
Associates, LTD
c/o Frankel Enterprises, Inc.
1845 Walnut Street
Suite 2345
Philadelphia, PA
19103
2. ARCCA Litigation $4,791
PO Box 78 Support
Penns Park, PA
18943-0078
3. Chase Cardmember Service Credit Card $44,474
PO BOX 1423
Charlotte, NC
28201-1423
4. Cone PLLC $0
1005 Heights Boulevard
Houston, TX 77008
5. Guaranteed Subpoena Litigation $0
Service, Inc. Support
2009 Moris Avenue
Union, NJ 07083
6. Jordan Litigation Funding Loan $124,000
1601 Sansom Street,
Suite 2E
Philadelphia, PA
19103
7. Krueger Chiropractic $65
1653 Lititz Pike,
#402
Lancaster, PA 17601
8. Lexitas Court Reporting $2,076
P.O. Box 734298
Dept. 2012
Dallas, TX
75373-4298
9. Magna Legal Services, LLC Court Reporting $279
Seven Penn Center
1635 Market Street,
8th Floor
Philadelphia, PA
19103
10. OnTime Process Process Fees $100
Services, LLC
1775 Washburn Way
Klamath Falls, OR
97603
11. PNC Bank, National Line of Credit $200,500
Association
Business Banking
1600 Market Street
Philadelphia, PA
19103
12. RG/2 Claims Litigation $3,478
Administration LLC Support
30 S 17th Street, 5th Floor
Philadelphia, PA
19103
13. Sacks & Weston Loan $688,321
1845 Walnut Street
Suite 1600
Philadelphia, PA
19103
14. Sacks & Weston Loan $5,530
1845 Walnut Street
Suite 1600
Philadelphia, PA
19103
15. Sargent's Court Court Reporting $1,227
Reporting Service, Inc.
210 Main Street
Johnstown, PA
15901
16. The Center for Litigation $5,014
Forensic Economic Support
Studies
20 Brace Road,
Suite 425
Cherry Hill, NJ
08034
17. Virage SPV 1, LLC Litigation Unknown
1700 Post Oak Funding
Boulevard
2 BLVD Place
Suite 300
Houston, TX 77056
SAINT LEO UNIVERSITY: S&P Lowers ICR to 'BB' on Weakened Finances
-----------------------------------------------------------------
S&P Global Ratings lowered its long-term rating to 'BB' from 'BB+'
on the Florida Higher Educational Facilities Financing Authority's
series 2019 educational facilities revenue bonds, issued for Saint
Leo University.
"The downgrade reflects our view of the university's steadily
declining enrollment, which has pressured operations, resulting in
a debt service coverage covenant violation in fiscal 2023, and the
hindering of financial resource growth," said S&P Global Ratings
credit analyst Nicholas Fortin. "Due to operating challenges, the
university recently took an extraordinary draw from its somewhat
limited endowment, leading to the weakening of financial resource
metrics. Further, Saint Leo faces heightened liquidity challenges,
which we believe could hamper the university's ability to meet
operational needs and implement strategic initiatives during the
one-year outlook period without continued extraordinary draws from
the endowment," Mr. Fortin added.
As of fiscal 2022 year-end, Saint Leo had approximately $87.2
million in debt outstanding including the series 2019 bonds,
approximately $8 million of operating leases, $1.2 million of
financing leases, and a $1.5 million note with a financial
institution. The $9.9 million drawn on the university's $10.0
million line of credit, which is used on an annual basis, is also
included in the Saint Leo's existing debt. Pro forma debt totals
approximately $92.2 million and includes a $5.0 million loan with
First National Bank of Pasco (FNBP) entered into subsequent to
fiscal 2022 year-end. Finally, in September 2022, Saint Leo
increased its line of credit to $15 million from $10 million.
Management has no plans to issue further debt at this time.
Management indicated that the university has continued to make all
required debt payments and had reduced long-term leases by $1.2
million during the fiscal year 2023.
The series 2019 bonds were issued pursuant to a master trust
indenture (MTI) in which the university is the initial and sole
member of its obligated group. The university's gross operating
revenues, which include all revenues generated by Saint Leo and its
consolidated subsidiaries except those revenues associated with
discontinued operations, secure the series 2019 bonds. Importantly,
the series 2019 bonds are the only debt obligations secured under
the MTI and, as such, maintain a senior security interest. The
obligated group (university) is required, pursuant to its debt
obligations, to remain in compliance with several financial
covenants. The series 2019 bonds require Saint Leo to maintain a
debt service reserve fund equal to maximum annual debt service
(MADS) on the series 2019 bonds and be in compliance with a
liquidity covenant requiring "available assets" (cash and
investments less net assets restricted in perpetuity) to be at
least 40% of long-term debt. As of fiscal 2022, that ratio was 63%
and we expect it will remain above 60% in fiscal 2023. The FNBP
loan requires the university to maintain and designate at least $5
million in unrestricted funds for collateral. The loan's terms also
require maintenance of a debt service coverage ratio of 1.0x and a
loan-to-value ratio, which states that the principal amount of the
loan should not exceed the aggregate sum of 50% of the current
market value of the bonds held as collateral, plus 75% of the
current market value of the equity securities as collateral, plus
100% of the cash on deposit held as collateral. The revised line of
credit agreement requires the university to maintain and designate
$30 million of unrestricted funds for collateral and maintain total
net assets without donor restriction of at least $45 million. The
university maintained $120.2 million in net assets without donor
restriction as of fiscal year-end 2022. S&P understands the
university was in compliance with its covenants as of fiscal
year-end 2022. For fiscal 2023, management indicates that they are
in compliance with the series 2019 bond covenants despite not
meeting the debt service coverage ratio of 1.0x required under the
FNPB loan agreement; the university received a waiver from FNPB for
fiscal 2023
S&P said, "We assessed Saint Leo's enterprise risk profile as
adequate, with continued, steep enrollment declines, offset by the
university's broad geographic reach and programmatic diversity due
to its national online program. We assessed Saint Leo's financial
risk profile as vulnerable, with modest and weakening financial
resource levels and limited liquidity, declining net tuition
revenue, and full-accrual operating deficits in each of the past
five years, with another deficit projected for fiscal 2023.
However, management made material expense reductions over the past
year that are expected to yield improved results beyond fiscal
2023. This, in addition to what we consider a manageable MADS
burden, are slightly offsetting factors. These credit factors,
combined, lead to an anchor of 'bb' and a final rating of 'BB'."
Saint Leo is an accredited private, Catholic, coeducational,
liberal arts university that serves people of all faiths, with its
main campus in Saint Leo, Fla., and a significant online academic
presence. The university has a headcount enrollment of about 9,000
undergraduate and graduate students from all 50 states and more
than 80 countries
S&P said, "The negative outlook reflects our expectation that
financial resources will remain constrained over, at least, the
one-year outlook period due to the university's expectation of
negative operating results in fiscal 2023, and the likelihood that
positive financial results might only occur beyond the outlook
period. While management has made material expense reductions over
the past year, we do not expect these reductions will translate to
improved operations until fiscal 2024 at the earliest."
SHEARER'S FOODS: Moody's Alters Outlook on 'B2' CFR to Stable
-------------------------------------------------------------
Moody's Investors Service affirmed the ratings of Shearer's Foods,
LLC including the B2 Corporate Family Rating, the B2-PD Probability
of Default Rating, the B2 rating on the company's first lien term
loan, and the Caa1 rating on the company's second lien term loan.
Moody's changed the outlook to stable from negative.
The outlook revision to stable from negative reflects the company's
ongoing earnings recovery, which has resulted in reduced
debt/EBITDA leverage and improved free cash flow. Specifically,
EBITDA (on a Moody's adjusted basis) has increased roughly 60% over
the first nine months ended June 24, 2023 compared to the prior
year nine month period, resulting in debt/EBITDA leverage declining
to 6.2x (on a Moody's adjusted basis) for the last 12 month (LTM)
period ended June 24, 2023, compared to nearly 9x in fiscal 2022.
The company's profitability is rebounding strongly behind pricing
actions and improved supply chain performance, including better
staffing levels, reduced turnover, lower downtime, and improved
fill rates. The company is also driving volume growth and is
benefitting from improving private label demand. Moody's expects
these factors will continue to increase earnings and reduce
leverage over the next six months. The deleveraging also reflects a
lower debt balance as the company voluntarily paid down $60 million
of its second lien term loan in the fiscal 3Q23 period ended June
24, 2023.
Moody's projects revenue to grow 20-25% pro forma for the
SuperPufft acquisition (or nearly 40% on a reported basis) in the
fiscal year ended September 2023, with EBITDA (on a Moody's
adjusted basis) projected to increase roughly 60%. The projected
revenue growth reflects Moody's expectation of mid to high single
digit volume growth, with the remainder driven by pricing. In
fiscal 2024, Moody's projects the company to grow top line at a low
single digit rate, driven by category growth, with EBITDA projected
to grow at a similar rate with modest margin improvement driven by
volume leverage and productivity investments. Moody's expects the
company's free cash flow to turn positive in fiscal 2023 in the
range of $25-$35 million, improving to more than $50 million in
fiscal 2024. The company's cash flow is negatively impacted by
rising interest rates given the floating rate nature of its
approximately $1.2 billion term loan debt. Still, Moody's expects
free cash flow to remain positive because of the strong earnings
recovery.
The stable outlook reflects Moody's expectation that earnings will
continue to improve, reducing debt/EBITDA leverage to roughly 5x by
the end of fiscal 2024. The stable outlook also reflects Moody's
expectation for free cash flow to improve to a more comfortably
positive level in the fiscal year ended September 2024 of more than
$50 million.
Moody's took the following rating actions:
Affirmations:
Issuer: Shearer's Foods, LLC
Corporate Family Rating, Affirmed B2
Probability of Default Rating, Affirmed B2-PD
Backed Senior Secured 1st Lien Term Loan, Affirmed B2
Backed Senior Secured 2nd Lien Term Loan, Affirmed Caa1
Outlook Actions:
Issuer: Shearer's Foods, LLC
Outlook, Changed To Stable From Negative
RATINGS RATIONALE
Shearer's B2 CFR reflects good market position in the competitive
private label and co-manufacturing snacks industry, the company's
aggressive financial policy and high financial leverage. Shearer's
debt/EBITDA leverage has improved over the last year, but remains
high at 6.2x (on a Moody's adjusted basis) for the LTM period ended
June 24, 2023. The company was negatively impacted last year by
supply chain challenges and inflation, but the company's earnings
are recovering in fiscal 2023 through applicable pricing actions,
improved supply chain performance and increased volume. Moody's
expects debt/EBITDA to decline to roughly 5x over the next 12-18
months through further projected earnings growth. Customer
concentration also remains a risk because shifts in volume or
pricing pressure can weaken earnings. However, the company has
solid relationships with its largest customers and benefits from
its leading position as a producer of private label snacks, with a
broad manufacturing footprint that allows it to service customers
nationally. Shearer's credit profile is further supported by
improving private label demand and a diversified business mix (55%
private label, 38% co-manufacturing, and 7% foodservice).
Multiple news sources have indicated that Shearer's is considering
a potential sale of its business, but the company has not made any
official statements regarding this matter.
Shearer's liquidity is good supported by $64 million of cash,
positive projected free cash flow and an undrawn $125 million ABL
revolving credit facility. As of June 24, 2023, availability on the
ABL was $88 million (net of letters of credit and reserves). The
company also has access to an undrawn $20 million Canadian Dollar
credit facility that renews on an annual basis, although this
credit facility is uncommitted. Moody's projects the company will
generate positive free cash flow of $25-$35 million in fiscal
September 2023, which reflects a material improvement compared to
the company's $39 million of negative free cash flow in fiscal
2022. The stronger cash flow reflects the significant earnings
improvement in fiscal 2023, which is projected to more than offset
the impact of rising interest rates on cash interest expense. In
fiscal 2024, Moody's projects free cash flow to improve further to
more than $50 million, reflecting Moody's expectation of modest
earnings growth and a smaller working capital drag. Moody's expects
the company's free cash flow to be sufficient to cover the $11
million in required annual term loan amortization. Moody's expects
little to no usage of the revolver over the next 12-18 months. The
ABL facility contains only one financial maintenance covenant,
which is a springing 1.0x minimum fixed charge covenant if
availability falls below $12.5 million. Moody's does not expect the
covenant to spring into effect over the next 12 months. If it does,
Moody's expects that the company will have sufficient cushion.
There are no financial maintenance covenants under the existing
term loans. The company has no near term maturities as the ABL
expiry was recently extended on August 17, 2023 from September 2024
to September 2026. The first lien term loan is due in September
2027, and the second lien term loan is due in September 2028.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
A rating downgrade could occur if earnings decline due to volume or
margin pressure, liquidity deteriorates, free cash flow is not
maintained at a comfortably positive level, or the financial policy
becomes more aggressive. Quantitatively, a downgrade could occur if
debt/EBITDA exceeds 6.0x or EBITDA less capital
spending-to-interest is below 1.25x.
A rating upgrade could occur if Shearer's is able to improve
operating performance including sustained positive organic revenue
growth with higher margins, and consistent and solid free cash flow
generation. Shearer's would also need to sustain debt/EBITDA below
5.0x and adopt a more conservative financial policy.
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Consumer
Packaged Goods published in June 2022.
COMPANY PROFILE
Shearer's Foods, LLC, headquartered in Massillon, Ohio,
manufactures snack food products such as traditional potato chips,
tortilla chips, kettle potato chips, extruded cheese snacks,
cookies, and crackers for other companies. Revenue was $1.8 billion
for the last twelve months ended June 24, 2023. Shearer's has been
majority owned by Ontario Teachers' Pension Plan Board since 2015.
SIGYN THERAPEUTICS: Incurs $723K Net Loss in Second Quarter
-----------------------------------------------------------
Sigyn Therapeutics, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $723,124 on $0 of net revenues for the three months ended June
30, 2023, compared to a net loss of $666,325 on $0 of net revenues
for the three months ended June 30, 2022.
For the six months ended June 30, 2023, the Company reported a net
loss of $2.06 million on $0 of net revenues compared to a net loss
of $1.34 million on $0 of net revenues for the six months ended
June 30, 2022.
As of June 30, 2023, the Company had $361,817 in total assets,
$3.40 million in total liabilities, and a total stockholders'
deficit of $3.04 million.
The Company had an accumulated deficit of $9,259,736 at June 30,
2023, had a working capital deficit of approximately $3,117,142 at
June 30, 2023, had net losses of $723,124 and $2,064,160, and
$666,325 and $1,344,371 for the three and six months ended June 30,
2023 and 2022, respectively, and net cash used in operating
activities of $891,267 and $854,308 for the six months ended June
30, 2023 and 2022, respectively, with no revenue earned since
inception, and a lack of operational history. According to the
Company, these matters raise substantial doubt about its ability to
continue as a going concern.
Sigyn said, "While the Company is attempting to expand operations
and increase revenues, the Company's cash position may not be
significant enough to support the Company's daily operations.
Management intends to raise additional funds by way of a public
offering or an asset sale transaction. Management believes that
the actions presently being taken to further implement its business
plan and generate revenues provide the opportunity for the Company
to continue as a going concern. While management believes in the
viability of its strategy to generate revenues and in its ability
to raise additional funds or transact an asset sale, there can be
no assurances to that effect or on terms acceptable to the Company.
The ability of the Company to continue as a going concern is
dependent upon the Company's ability to further implement its
business plan and generate revenues."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1642159/000149315223028351/form10-q.htm
About Sigyn
Sigyn Therapeutics, Inc. is a development-stage company focused on
the creation of therapeutic solutions that address unmet needs in
global health. Sigyn Therapy, the Company's lead product
candidate, is a broad-spectrum blood purification technology
designed to treat pathogen-associated inflammatory disorders that
are not addressed with approved drug therapies.
Sigyn Therapeutics reported a net loss of $2.93 million for the
year ended Dec. 31, 2022, compared to a net loss of $3 million for
the year ended Dec. 31, 2021. As of March 31, 2023, the Company had
$660,447 in total assets, $3.01 million in total liabilities, and a
total stockholders' deficit of $2.35 million.
New York, NY-based Kreit & Chiu CPA LLP, the Company's auditor
since 2021, issued a "going concern" qualification in its report
dated March 31, 2023, citing that the Company has suffered
recurring losses from operations, has a net capital deficiency,
and
negative cash flows from operating activities, therefore, the
Company has stated that substantial doubt exists about its ability
to continue as a going concern.
SIX FLAGS: Egan-Jones Retains CCC+ Senior Unsecured Ratings
-----------------------------------------------------------
Egan-Jones Ratings Company on August 1, 2023, maintained its 'CCC+'
foreign currency and local currency senior unsecured ratings on
debt issued by Six Flags Inc. EJR also withdraws rating on
commercial paper issued by the Company.
Headquartered in Arlington, Texas, Six Flags Inc operates as an
amusement park.
SOHA HOUSE: Gets OK to Hire Davidoff Hutcher & Citron as Counsel
----------------------------------------------------------------
Soha House LLC and its affiliates received approval from the U.S.
Bankruptcy Court for the Southern District of New York to employ
Davidoff Hutcher & Citron, LLP.
The Debtors require legal counsel to:
(a) give advice with respect to the powers and duties of the
Debtors in the continued management of their property and affairs;
(b) negotiate with creditors, work out a Chapter 11 plan of
reorganization and take the necessary legal steps in order to
effectuate such a plan;
(c) prepare legal papers;
(d) appear before the bankruptcy court;
(e) attend meetings and negotiate with representatives of
creditors and other parties involved in the Debtors' Chapter 11
cases;
(f) advise the Debtors in connection with any potential
refinancing of secured debt and any potential sale of their
businesses;
(g) represent the Debtors in connection with obtaining
post-petition financing;
(h) take any necessary action to obtain approval of a
disclosure statement and confirmation of a plan of reorganization;
and
(i) perform all other necessary legal services.
The firm will be paid at these rates:
Attorneys $450 to $850 per hour
Paraprofessionals $195 to $260 per hour
In addition, the firm will receive reimbursement for expenses
incurred.
Jonathan Pasternak, Esq., an attorney at Davidoff Hutcher & Citron,
disclosed in a court filing that his firm is a "disinterested
person" pursuant to Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Robert L. Rattet, Esq.
Jonathan S. Pasternak, Esq.
Davidoff Hutcher & Citron, LLP
120 Bloomingdale Road, Suite 100
White Plains, NY 10605
Telephone: (914) 381-7400
Email: rlr@dhclegal.com
jsp@dhclegal.com
About Soha House
Soha House, LLC a New York-based company, and its affiliates filed
voluntary petition for Chapter 11 protection (Bankr. S.D.N.Y. Case
Nos. 23-11086 to 23-11089) on July 11, 2023. At the time of the
filing, Soha House reported $1 million to $10 million in both
assets and liabilities.
Judge John P. Mastando III oversees the cases.
Davidoff Hutcher & Citron, LLP serves as the Debtors' legal
counsel.
SOUL HEAVEN: Taps Frances Hoit Hollinger as Bankruptcy Attorney
---------------------------------------------------------------
Soul Heaven Cafe, LLC seeks approval from the U.S. Bankruptcy Court
for the Southern District of Alabama to employ Frances Hoit
Hollinger, Esq., a practicing attorney in Mobile, Ala.
The Debtor requires a bankruptcy attorney to:
1. take appropriate action with respect to secured and priority
creditors;
2. take appropriate action with respect to possible voidable
preferences and transfers;
3. prepare legal papers and try before the court whatever issues
are deemed necessary;
4. investigate the accounts of the Debtor and the financial
transactions related thereto; and
5. perform other necessary legal services for the Debtor.
Ms. Hollinger will be compensated at $300 per hour.
In addition, the attorney will receive reimbursement for
out-of-pocket expenses incurred.
As disclosed in court filings, Ms. Hollinger is a "disinterested
person" pursuant to Section 101(14) of the Bankruptcy Code.
Ms. Hollinger holds office at:
Frances Hoit Hollinger, Esq.
109 N Conception St.
Mobile, AL 36602
Tel: (251) 432-8878
Email: FranHollinger@aol.com
About Soul Heaven Cafe
Soul Heaven Cafe, LLC filed Chapter 11 petition (Bankr. S.D. Ala.
Case No. 23-11742) on Aug. 3, 2023, with as much as $50,000 in
assets and $50,001 to $100,000 in liabilities. Judge Jerry C.
Oldshue oversees the case.
Frances Hoit Hollinger, Esq., a practicing attorney in Mobile,
Ala., serves as the Debtor's bankruptcy counsel.
SOUTHERN HERITAGE: Unsecureds Owed $437K to Get Nothing in Plan
---------------------------------------------------------------
Southern Heritage Timber Co LLC submitted a First Amended Plan of
Reorganization for Small Business dated August 17, 2023.
The Debtor operates a timber harvesting and/or logging business in
which the Debtor harvests timber from land parcels designated by a
timber buyer and thereafter transports the harvested timber to a
mill for processing.
The Plan Proponent's financial projections show that the Debtor
will have projected disposable income that is sufficient to pay
creditors holding allowed secured and priority unsecured claims;
however, to maintain an acceptable level of liquidity and working
capital, this Plan provides that there will be no distribution to
creditors holding non-priority unsecured claims.
The Debtor will pay the claims within no more than 5 years of
confirmation of the Plan.
This Plan proposes to pay certain creditors of the Debtor, from
cash flow from future earnings.
Class 2 consists of the Secured Claims of Ally, Century,
Mitsubishi, John Deere and S&P:
* Secured Claim of Ally Bank (Proof of Claim Number 1). Upon
confirmation of this Plan, the secured claim will be paid in full
at $48,137.50, at a fixed interest rate of 10.0% per annum, in
equal monthly installments of $1,022.78, for a period of 60 months,
or until the secured claim is paid in full. Once the secured claim
is paid in full as provided herein this Plan, Ally Bank shall
release its lien on the aforementioned property or the collateral
and the Debtor will be released from any and all further liability
on the secured claim.
* Secured Claim of Ally Bank (Proof of Claim Number 2). Upon
confirmation of this Plan, the secured claim will be paid in full
at $36,750.00, at a fixed interest rate of 10.0% per annum, in
equal monthly installments of $780.83, for a period of 60 months,
or until the secured claim is paid in full. Once the secured claim
is paid in full as provided herein this Plan, Ally Bank shall
release its lien on the aforementioned property or the collateral
and the Debtor will be released from any and all further liability
on the secured claim.
* Secured Claim of Century Bank (Proof of Claim Number 3).
Upon confirmation of this Plan, the secured claim will be paid in
full at $5,000.00, at a fixed interest rate of 7.0% per annum, in
equal monthly installments of $99.01, for a period of 60 months, or
until the secured claim is paid in full. Once the secured claim is
paid in full as provided herein this Plan, Century Bank shall
release its lien on the aforementioned property or the collateral
and the Debtor will be released from any and all further liability
on the secured claim.
* Secured Claim of Century Bank (Proof of Claim Number 4).
Upon confirmation of this Plan, the secured claim will be paid in
full at $5,000.00, at a fixed interest rate of 7.0% per annum, in
equal monthly installments of $99.01, for a period of 60 months, or
until the secured claim is paid in full. Once the secured claim is
paid in full as provided herein this Plan, Century Bank shall
release its lien on the aforementioned property or the collateral
and the Debtor will be released from any and all further liability
on the secured claim.
* Secured Claim of Century Bank (Proof of Claim Number 5).
Upon confirmation of this Plan, the secured claim will be paid in
full at $5,000.00, at a fixed interest rate of 7.0% per annum, in
equal monthly installments of $99.01, for a period of 60 months, or
until the secured claim is paid in full. Once the secured claim is
paid in full as provided herein this Plan, Century Bank shall
release its lien on the aforementioned property or the collateral
and the Debtor will be released from any and all further liability
on the secured claim.
* Secured Claim of Mitsubishi HC Capital America, Inc. (Proof
of Claim 7). Upon confirmation of this Plan, the secured claim will
be paid in full at $70,000, at a fixed interest rate of 6.0% per
annum, in equal monthly installments of $1,353, for a period of 60
months, or until the secured claim is paid in full. Once the
secured claim is paid in full as provided herein this Plan,
Mitsubishi HC Capital America, Inc. shall release its lien on the
aforementioned property or the collateral and the Debtor will be
released from any and all further liability on the secured claim.
* Secured Claim of John Deere Construction (Proof of Claim
Number 11). Upon confirmation of this Plan, the secured claim will
be paid in full at $250,000, at a fixed interest rate of 6% per
annum, in equal monthly installments of $4,143 for a period of 72
months, or until the secured claim is paid in full. Once the
secured claim is paid in full, John Deere Construction shall
release its lien on the aforementioned property or the collateral
and the Debtor will be released from any and all further liability
on the secured claim.
* Secured Claim of John Deere Construction (Proof of Claim
Number 13). Upon confirmation of this Plan, the secured claim will
be paid in full at $250,000.00, at a fixed interest rate of 6% per
annum, in equal monthly installments of $4,143.22 for a period of
72 months, or until the secured claim is paid in full. Once the
secured claim is paid in full as provided herein this Plan, John
Deere Construction shall release its lien on the aforementioned
property or the collateral and the Debtor will be released from any
and all further liability on the secured claim.
* Secured Claim of John Deere Construction (Proof of Claim
Number 14). Upon confirmation of this Plan, the secured claim will
be paid in full at $225,000.00, at a fixed interest rate of 6% per
annum, in equal monthly installments of $3,728.90 for a period of
72 months, or until the secured claim is paid in full. Once the
secured claim is paid in full as provided herein this Plan, John
Deere Construction shall release its lien on the aforementioned
property or the collateral and the Debtor will be released from any
and all further liability on the secured claim.
* Secured Claim of S & P Financial Services, Inc. (Proof of
Claim Number 20). S & P Financial Services, Inc. untimely filed
Proof of Claim number 20 in the amount of $27,660.70 with
$17,795.00 stated for the value of the collateral ("Claim #20").
Claim #20 is secured in the amount of $5,000.00 by a lien against a
2004 Magnolia Pole Trailer as evidenced by the documents provided
in support of Claim #20. The unsecured claim or unsecured portion
thereof Claim #20 is accounted for and/or addressed within Class 4.
Upon confirmation of this Plan, the secured claim will be paid in
full at $5,000.00, at a fixed interest rate of 7.0% per annum, in
equal monthly installments of $99.01, for a period of 60 months, or
until the secured claim is paid in full.
Class 4 consists of Non-priority unsecured creditors. These claims
are not secured by property of the estate. The unsecured creditors
will receive no distribution under this plan. The allowed unsecured
claims total $436,563.60.
The Debtor will retain all of its personal property, subject to the
encumbrances and liens, which will allow the Debtor to operate its
business and pay its creditors from the future earnings derived
from such operations. As applicable and necessary, the Debtor will
submit, to the supervision and control of the Trustee, all or such
required portion of its future earnings or other future income as
is necessary to effectuate execution of this Plan. The Debtor's
monthly operating reports demonstrate and support feasibility.
A full-text copy of the First Amended Plan dated August 17, 2023 is
available at https://urlcurt.com/u?l=MavSsB from PacerMonitor.com
at no charge.
Attorney for the Plan Proponent:
Anthony B. Bush, Esq.
THE BUSH LAW FIRM, LLC
Parliament Place Professional Center
3198 Parliament Circle 302
Montgomery, Alabama 36116
Facsimile: (334) 832-4390
Email: anthonybbush@yahoo.com
abush@bushlegalfirm.com
About Southern Heritage Timber Co
Southern Heritage Timber Co LLC operates a timber harvesting or
logging business in Monroeville, Alabama.
The Debtor sought protection from Chapter 11 of the U.S. Bankruptcy
Code (Bankr. M.D. Ala. Case No. 23-30734) on April 14, 2023. In the
petition signed by Cory Willis, its member, the Debtor disclosed up
to $1 million in assets and up to $10 million in liabilities.
Judge Bess M. Parrish Creswell oversees the case.
Anthony Bush, Esq., at The Bush Law Firm, LLC, is the Debtor's
legal counsel.
SPIRIPLEX INC: Court OKs Cash Collateral Access Thru Oct 13
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois,
Eastern Division, authorized Spiriplex, Inc. to use cash collateral
on an interim basis in accordance with the budget, with a 10%
variance, through October 13, 2023.
The Court said the Debtor may only pay professionals after the
professional fees are approved by further Court order.
In return for the Debtor's continued interim use of cash
collateral, the U.S. Small Business Administration is granted the
following adequate protection for its purported secured interests
in cash collateral equivalents, including the Debtor's cash,
accounts receivable and inventory, among other collateral:
A. The Debtor will permit the SBA to inspect, upon reasonable
notice, and within reasonable business hours, the Debtor's books
and records;
B. The Debtor will maintain and pay premiums for insurance to
cover all of its assets from fire, theft and water damage;
C. The Debtor will, upon reasonable request, make available to
the SBA evidence of that which purportedly constitutes their
collateral or proceeds;
D. The Debtor will properly maintain the collateral and
properly manage the collateral; and
E. The Debtor will grant a replacement lien to the SBA to the
extent of its prepetition lien, and attaching to the same assets of
the Debtor in which the SBA asserted pre-petition liens.
A further hearing on the matter is set for October 10, 2023 at 1:30
p.m.
A copy of the Court's order is available at
https://urlcurt.com/u?l=V4QCxZ from PacerMonitor.com.
The Debtor projects total expenses of $80,800 for August 2023.
About Spiriplex, Inc.
Spiriplex, Inc. specializes in micro-sample allergenic diagnostics,
providing clinical laboratory services throughout the U.S. The
Debtor sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. N.D. Ill. Case No. 23-02773) on March 1, 2023. In the
petition signed by David C. Fleisner, CEO, the Debtor disclosed up
to $500,000 in assets and up to $10 million in liabilities.
Judge Jacqueline Cox oversees the case.
Scott R. Clar, Esq., at Crane, Simon, Clar & Goodman, serves as
counsel to the Debtor.
STEEPOLOGIE LLC: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Steepologie, LLC
2110 Ranch Road 620 S
Austin TX 78734
Business Description: Steepologie is family owned and operated
company that sells 250+ blends of tea that
are packed fresh in-house.
Chapter 11 Petition Date: August 25, 2023
Court: United States Bankruptcy Court
Western District of Texas
Case No.: 23-10671
Judge: Hon. H. Christopher Mott
Debtor's Counsel: Stephen W Sather, Esq.
BARRON & NEWBURGER, P.C.
7320 N. MoPac Expressway 400
Austin TX 78731
Tel: (512) 649-3243
Email: ssather@bn-lawyers.com
Total Assets: $44,445
Total Liabilities: $1,169,339
The petition was signed by Andrea Raetzer as president - owner.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/XPL6HKI/Steepologie_LLC__txwbke-23-10671__0001.0.pdf?mcid=tGE4TAMA
SUMMIT HOTEL: Egan-Jones Retains BB Senior Unsecured Ratings
------------------------------------------------------------
Egan-Jones Ratings Company on August 10, 2023, maintained its 'BB'
foreign currency and local currency senior unsecured ratings on
debt issued by Summit Hotel Properties, Inc. EJR also withdraws
rating on commercial paper issued by the Company.
Headquartered in Austin, Texas, Summit Hotel Properties, Inc.
operates as a real estate investment trust.
SUN PACIFIC: Posts $101K Net Income in Second Quarter
-----------------------------------------------------
Sun Pacific Holding Corp filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing net income
of $101,091 on $23,080 of revenues for the three months ended June
30, 2023, compared to net income of $43,182 on $123,799 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 $5,405 on $45,815 of revenues compared to net income of
$2,159 on $222,251 of revenues for the six months ended June 30,
2022.
As of June 30, 2023, the Company had $97,863 in total assets, $3.20
million in total liabilities, and a total stockholders' deficit of
$3.10 million.
"For the six months ended June 30, 2023 and 2022, the Company
incurred losses from operations of $253,858 and $53,884,
respectively. The Company had a working capital deficit of
$3,124,886 as of June 30, 2023. These circumstances raise
substantial doubt about the Company's ability to continue as a
going concern. The Company's ability to continue as a going
concern is dependent on its ability to raise the additional capital
to meet short and long-term operating requirements. Management is
continuing to pursue external financing alternatives to improve the
Company's working capital position however additional financing may
not be available upon acceptable terms, or at all. If the Company
is unable to obtain the necessary capital, the Company may have to
cease operations."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1343465/000149315223028429/form10-q.htm
About Sun Pacific
Headquartered in Manalapan NJ, Sun Pacific Holding Corp. --
http://www.sunpacificholding.com-- is a diversified publicly
traded holding company encompassing the following subsidiaries: Sun
Pacific Power Corp, Street Smart Outdoor Corp, and National
Mechanical Corp. Its focus is protecting the environment by
adapting new green technologies and developing synergy across its
subsidiaries.
As of March 31, 2023, the Company had $139,380 in total assets,
$3.34 million in total liabilities, and a total stockholders'
deficit of $3.20 million.
Dallas, Texas-based Turner, Stone & Company, L.L.P., the Company's
auditor since 2017, issued a "going concern" qualification in its
report dated April 17, 2023, citing that the Company has suffered
recurring losses from operations since inception and has a
significant working capital deficiency, both of which raise
substantial doubt about its ability to continue as a going concern.
SUN VALLEY: Interim Cash Collateral Access OK'd
-----------------------------------------------
The U.S. Bankruptcy Court for the District of Arizona authorized
Sun Valley Recovery LLC et al 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 post-petition
operating expenses in the ordinary course of their businesses.
The U.S. Small Business Administration holding a first position
prepetition security interest in the cash collateral will be
granted a post-petition replacement lien on the same type of
post-petition assets acquired by the Debtors after the petition
date, and in the same validity, priority, and extent as the SBA
possessed a lien on cash collateral on the petition date.
A final hearing on the matter is set for September 27 at 11 a.m.
A copy of the court's order and the Debtor's budget is available at
https://urlcurt.com/u?l=Stl9Nc from PacerMonitor.com.
The Debtor projects total expenses, on a monthly basis, as
follows:
$206,969 for month 1;
$209,933 for month 2;
$212,455 for month 3;
$215,033 for month 4; and
$227,670 for month 5.
About Sun Valley Recovery LLC
Sun Valley Recovery LLC and affiliates sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Ariz. Case No.
2:23-bk-05552-DPC) on August 15, 2023. In the petition signed by
Sean Cooke, manager, the Debtor disclosed up to $1 million in both
assets and liabilities.
Judge Daniel P. Collins oversees the case.
D. Lamar Hawkins, Esq., at Guidant Law, PLC, represents the Debtor
as legal counsel.
SUNPOWER CORP: Egan-Jones Retains BB Senior Unsecured Ratings
-------------------------------------------------------------
Egan-Jones Ratings Company on August 11, 2023, maintained its 'BB'
foreign currency and local currency senior unsecured ratings on
debt issued by SunPower Corporation. EJR also withdraws rating on
commercial paper issued by the Company.
Headquartered in San Jose, California, SunPower Corporation is an
integrated solar products and services company.
TANTIVE GIV: Case Summary & Six Unsecured Creditors
---------------------------------------------------
Debtor: Tantive Giv LLC
7270 NW 12th Street, Suite 760
Miami, FL 33126
Business Description: The Debtor owns One G-IV 1988 Gulfstream
Aerospace aircraft bearing manufacturer's
serial number 1079, together with all
avionics, accessories or other equipment and
documentation.
Chapter 11 Petition Date: August 24, 2023
Court: United States Bankruptcy Court
Southern District of Florida
Case No.: 23-16765
Judge: Hon. Robert A. Mark
Debtor's Counsel: Brett Lieberman, Esq.
EDELBOIM LIEBERMAN REVAH PLLC
20200 W. Dixie Hwy
Suite 905
Miami, FL 33180
Tel: 305-768-9909
Email: brett@elrolaw.com
Total Assets: $3,325,348
Total Liabilities: $5,435,972
The petition was signed by Eugene Kesselman sa CEO of 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/4C4Q32I/Tantive_Giv_LLC__flsbke-23-16765__0001.0.pdf?mcid=tGE4TAMA
TECHNICAL ORDNANCE: Taps Mchale P.A. as Financial Advisor
---------------------------------------------------------
Technical Ordnance Solutions, LLC and its affiliates seek approval
from the U.S. Bankruptcy Court for the Middle District of Florida
to employ McHale P.A. as financial advisor.
The firm's services include:
a. Advising on financial matters;
b. Compiling and formatting data and analysis that are
necessary and appropriate in the Debtors' Chapter 11 bankruptcy
cases;
c. Preparing forecasts and budgets of the Debtors' operations
and cash flows, as necessary;
d. Assisting the Debtors' counsel and any other professionals;
and
e. Other financial advisory services.
The firm will be paid at these rates:
Gerard "Jerry" A. McHale, Jr., CPA, CFF $195 per hour
Accounting Professionals $550 per hour
Clerical Workers $90 per hour
The retainer fee is $10,000.
Gerard McHal, a partner at McHale, disclosed in a court filing that
his firm is a "disinterested person" pursuant to Section 101(14) of
the Bankruptcy Code.
The firm can be reached at:
Gerard A. McHale
McHale, P.A.
1601 Jackson St., Suite 200
Ft. Myers, FL 33901
Tel: (238) 337-0808
Email: jerrym@thereceiver.net
About Technical Ordnance Solutions
Technical Ordnance Solutions, LLC is engaged in the business of
ordnance accessories manufacturing.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 23-00125) on Feb. 5,
2023, with up to $100,000 in assets and up to $10 million in
liabilities. Clyde William Colburn, III, owner, signed the
petition.
Judge Caryl E. Delano oversees the case.
The Debtor tapped Mike Dal Lago, Esq., at Dal Lago Law as
bankruptcy counsel and McHale P.A. as financial advisor.
TEGNA INC: Egan-Jones Retains CCC+ Senior Unsecured Ratings
-----------------------------------------------------------
Egan-Jones Ratings Company on August 10, 2023, maintained its
'CCC+' foreign currency and local currency senior unsecured ratings
on debt issued by TEGNA Inc. EJR also withdraws rating on
commercial paper issued by the Company.
Headquartered in Virginia, TEGNA Inc. is a broadcasting, digital
media and marketing services company.
TENNECO INC: Egan-Jones Retains B Senior Unsecured Ratings
----------------------------------------------------------
Egan-Jones Ratings Company on August 10, 2023, withdrew its 'B'
foreign currency and local currency senior unsecured ratings on
debt issued by Tenneco Inc.
Headquartered in Northville, Michigan, Tenneco Inc. designs,
manufactures, and markets emission control and ride control
products and systems for the automotive original equipment market
and the aftermarket.
TREES CORP: Posts $2 Million Net Loss in Second Quarter
-------------------------------------------------------
Trees Corporation filed with the Securities and Exchange Commission
its Quarterly Report on Form 10-Q disclosing a net loss of $2.04
million on $5.10 million of total revenue for the three months
ended June 30, 2023, compared to a net loss of $182,948 on $3.23
million of total revenue for the three months ended June 30, 2022.
For the six months ended June 30, 2023, the Company reported a net
loss of $3.92 million on $10.21 million of total revenue compared
to a net loss of $1.04 million on $6.81 million of total revenue
for the same period in 2022.
As of June 30, 2023, the Company had $29.37 million in total
assets, $26.85 million in total liabilities, and $2.51 million in
total stockholders' equity.
Trees Corp said, "We have incurred recurring losses and negative
cash flows from operations since inception and have primarily
funded our operations with proceeds from the issuance of debt. We
expect our operating losses to continue into the foreseeable future
as we continue to execute our acquisition and growth strategy. As
a result, we have concluded that there is substantial doubt about
our ability to continue as a going concern.
"Our ability to continue as a going concern is dependent upon our
ability to raise additional capital to fund operations, support our
planned investing activities, and repay our debt obligations as
they become due. If we are unable to obtain additional funding, we
would be forced to delay, reduce, or eliminate some or all of our
acquisition efforts, which could adversely affect our growth
plans."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1477009/000155837023014824/cann-20230630x10q.htm
About Trees Corp
Headquartered in Denver, Colorado, Trees Corporation (formerly
known as General Cannabis Corp) -- is a cannabis retailer and
cultivator in the States of Colorado and Oregon.
Trees Corp reported a net loss of $9.47 million for the year ended
Dec. 31, 2022, compared to a net loss of $8.87 million for the year
ended Dec. 31, 2021. As of Dec. 31, 2022, the Company had $31.69
million in total assets, $25.29 million in total liabilities, and a
total stockholders' equity of $6.41 million.
Salt Lake City, Utah-based Haynie & Company, the Company's auditor
since 2021, issued a "going concern" qualification in its report
dated April 17, 2023, citing that the Company has suffered
recurring losses from operations and has a negative working capital
that raise substantial doubt about its ability to continue as a
going concern.
TRITEK INTERNATIONAL: Enters Global Settlement; Files Amended Plan
------------------------------------------------------------------
Tritek International Inc. and its Affiliated Debtors submitted a
First Amended Combined Disclosure Statement and Joint Chapter 11
Plan dated August 17, 2023.
As set forth in the First Day Declaration, Debtors' paramount goal
in the Chapter 11 Cases was to maximize the value of the Estates
for the benefit of Debtors' creditor constituencies and other
stakeholders, including through the sale of substantially all of
the Assets.
The Global Settlement
On or about August 15, 2023, Debtors entered into the Global
Settlement with the Prepetition Secured Parties, the Lessor, and
the Committee. The Global Settlement is the subject of a pending
motion pursuant to Bankruptcy Rule 9019 (the "Settlement Motion")
filed with the Bankruptcy Court on August 15, 2023. A hearing on
the Settlement Motion has been set for August 30, 2023 at 10:00
a.m. Subject to the Bankruptcy Court's approval of the Settlement
Motion, the Debtors will modify the Plan accordingly as
contemplated by the Global Settlement.
In the Global Settlement, the Debtors, Prepetition Secured Parties,
the Lessor, and the Committee agreed to resolve a number of
objections the Committee intended to raise regarding certain
provisions in the Final DIP Order. As part of the Global Settlement
but subject to Bankruptcy Court approval, Debtors agreed to modify
the Plan, which modifications the Prepetition Secured Parties
agreed to support and fund in part, and the Committee agreed to
hold its potential objections to the Final DIP Order in abeyance.
Among other things, by the Global Settlement, the Committee agreed
to stay, and otherwise refrain from filing, any litigation,
objection or motion against or adverse to the Prepetition Secured
Parties and the Lessor relating to the Final DIP Order, Plan, or
any of the liens, claims or interests of the Prepetition Secured
Parties and the Lessor, and (ii) not take any action inconsistent
with the intent of the settling parties to fully resolve the
Committee's dispute with the Prepetition Secured Parties and the
Lessor over the amount of their claim(s), the extent, validity,
priority of their lien(s), the avoidance of any Prepetition Date
transfer(s), or any similar action(s) challenging certain
provisions in the Final DIP Order or the treatment of the
Prepetition Secured Lenders and the Lessors in the Plan.
The Global Settlement also provides, among other things, for the
(i) tolling of the Prepetition Secured Parties' Challenge Period,
as that term is defined in the Settlement Motion; (ii) the
consensual rejection of certain leases with the Lessor, the return
of the Lessor's equipment (to the extent not already returned), and
the treatment of the Lessor's rejection damages claim; and (iii) a
vote in favor of the Debtors’ Plan, as amended, by the
Prepetition Secured Parties and the Lessor. To the extent the
foregoing description is inconsistent with the terms and conditions
set forth in the Global Settlement, the Global Settlement governs.
Like in the prior iteration of the Plan, holders of Allowed General
Unsecured Claims shall receive such Holder's pro rata share of the
GUC Distribution Pool, provided, however, that the proceeds of any
Avoidance Actions shall be distributed only to the Holders of
General Unsecured Claims of the Debtor(s) on behalf of whose
estate, whether in the name of the Debtor or any party acting on
behalf of the Debtor, the respective Avoidance Action(s) is
asserted.
The Plan will be implemented by, among other things, the
establishment of the Liquidating Trust, the transfer to the
Liquidating Trust of the Liquidating Trust Assets, including,
without limitation, all Cash and Retained Causes of Action, and the
making of Distributions by the Liquidating Trust in accordance with
the Plan and Liquidating Trust Agreement.
Following the Sales, Debtors have focused principally on
efficiently winding down their businesses, preserving Cash held in
the Estates, and monetizing their remaining Assets. The remaining
Assets currently consist of, among other things, Cash, certain
deposits, prepayments, credits and refunds, insurance policies or
rights to proceeds thereof, accounts receivables, and certain
Causes of Action. This combined Disclosure Statement and Plan
provides for the Assets, to the extent not already liquidated, to
be liquidated over time and the proceeds thereof to be distributed
to Holders of Allowed Claims in accordance with the terms of the
Plan and the treatment of Allowed Claims. The Liquidating Trustee
will effect such liquidation and distributions. Debtors will be
dissolved as soon as practicable after the Effective Date.
A full-text copy of the First Amended Combined Disclosure Statement
and Plan dated August 17, 2023 is available at
https://urlcurt.com/u?l=kAzTlQ from PacerMonitor.com at no charge.
About Tritek International
Tritek International Inc., HyLife Foods Windom, LLC, Canwin Farms,
LLC are entities that are part of the HyLife vertically integrated
operation for the raising, production and sale of pork products.
The companies' operations involve all aspects and stages of the
pork production process, including the farming and sourcing of
hogs, the packaging of pork at their processing facility, and the
marketing and sale of such products throughout premium domestic and
international end markets, primarily in the United States, Canada,
Japan, Korea, and China.
Tritek International and its affiliates sought Chapter 11
bankruptcy protection (Bankr. D. Del. Lead Case No. 23-10520) on
April 27, 2023. The petitions were signed by Grant Lazaruk, chief
executive officer.
At the time of the filing, Tritek International and HyLife Foods
Windom reported as much as $50,000 in both assets and liabilities
while Canwin Farms reported $1 million to $10 million in both
assets and liabilities.
Judge Thomas M. Horan presides over the Debtors' cases.
The Debtors tapped Katten Muchin Rosenman, LLP and Potter Anderson
& Corroon, LLP as bankruptcy counsel; PricewaterhouseCoopers, LLP
as financial advisor; Intrepid Investment Bankers as investment
banker; and Donlin Recano & Company, Inc. as claims and noticing
agent.
TRONOX INC: Egan-Jones Retains BB- Senior Unsecured Ratings
-----------------------------------------------------------
Egan-Jones Ratings Company on August 8, 2023, maintained its 'BB-'
foreign currency and local currency senior unsecured ratings on
debt issued by Tronox Incorporated. EJR also withdraws rating on
commercial paper issued by the Company.
Headquartered in Stamford, Connecticut, Tronox Incorporated
manufactures specialty chemical products.
TWILIGHT HAVEN: Gets OK to Hire Gregory J. Smith as Special Counsel
-------------------------------------------------------------------
Twilight Haven, a California non-profit corporation, received
approval from the U.S. Bankruptcy Court for the Eastern District of
California to hire the Law Office of Gregory J. Smith as its
special counsel.
The firm will serve as defense counsel of the Debtor in a
prepetition class action wage and hour lawsuit pending in Fresno
County Superior Court and additional employment law matters that
include threatened litigation from current or former employees, and
legal advice needed to avoid further employment litigation.
As disclosed in court filings, the Law Office of Gregory J. Smith
is a "disinterested person" pursuant to Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Gregory J. Smith, Esq.
The Law Office of Gregory J. Smith
516 W. Shaw Ave. Suite 200, Fresno, CA 93704 Map
Phone: (559)221-5100
Facsimile: (559)221-5126
Email: admin@gregsmithlawfirm.com
About Twilight Haven
Twilight Haven, a California non-profit corporation, operates as a
non-profit corporation offering affordable independent senior
apartments, assisted living apartments as well as skilled nursing
services within its 10-acre campus. It is based in Fresno, Calif.
Twilight Haven filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. E.D. Calif. Case No. 23-11332) on June
22, 2023, with $12,592,133 in assets and $3,005,377 in liabilities.
Lisa Holder, Esq., a practicing attorney in Bakersfield, Calif.,
has been appointed as Subchapter V trustee.
Judge Rene Lastreto II oversees the case.
The Debtor tapped Riley C. Walter, Esq., at Wanger Jones Helsley as
legal counsel and Roos & McNabb as accountant.
TWILIGHT HAVEN: Gets OK to Hire Impossible Services as Consultant
-----------------------------------------------------------------
Twilight Haven, a California non-profit corporation, received
approval from the U.S. Bankruptcy Court for the Eastern District of
California to hire Impossible Services Group, Inc., dba Chambers
Business Solutions, as its consultant.
The firm will render these services:
a. assisting the Debtor in the administrative and reporting
aspects of this Chapter 11 case, including:
(i) Coordination of marketing with key constituencies.
(ii) Preparations of budgets and projections re cash
collateral, borrowings, and the plan.
(iii) Assistance with evaluation of sales and asset
dispositions.
(iv) Assistance with compliance with regulatory
compliance.
(v) Assistance with preparation of Monthly Operating
Reports.
(vi) Assistance in reporting compliance regarding cash
collateral orders.
b. assisting the Debtor in communications with the Subchapter
V trustee and secured creditors; and
c. other consulting and litigation services as necessary.
The firm's rates range from $225 per hour for senior consultants to
$75 per hour for support staff.
Aaron Chambers, president of Impossible Services Group, assured the
court that his firm is a "disinterested person" within the meaning
of Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Aaron G. Chambers
Impossible Services Group, Inc.
405 N. I Street, Suite A
Madera, CA 93637
About Twilight Haven
Twilight Haven, a California non-profit corporation, operates as a
non-profit corporation offering affordable independent senior
apartments, assisted living apartments as well as skilled nursing
services within its 10-acre campus. It is based in Fresno, Calif.
Twilight Haven filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. E.D. Calif. Case No. 23-11332) on June
22, 2023, with $12,592,133 in assets and $3,005,377 in liabilities.
Lisa Holder, Esq., a practicing attorney in Bakersfield, Calif.,
has been appointed as Subchapter V trustee.
Judge Rene Lastreto II oversees the case.
The Debtor tapped Riley C. Walter, Esq., at Wanger Jones Helsley as
legal counsel and Roos & McNabb as accountant.
TWITTER INC: Egan-Jones Retains BB- Senior Unsecured Ratings
------------------------------------------------------------
Egan-Jones Ratings Company on August 3, 2023, maintained its 'BB-'
foreign currency and local currency senior unsecured ratings on
debt issued by Twitter, Inc. EJR also withdraws rating on
commercial paper issued by the Company.
Headquartered in San Francisco, California, Twitter, Inc. provides
online social networking and microblogging service.
VENATOR MATERIALS: Taps Deloitte as Tax Services Provider
---------------------------------------------------------
Venator Materials, PLC and its affiliates seek approval from the
U.S. Bankruptcy Court for the Southern District of Texas to employ
Deloitte Tax, LLP as tax services provider.
The firm's services include:
A. Tax Restructuring Engagement Letter. Pursuant to the terms
and conditions of the Tax Restructuring Engagement Letter, Deloitte
Tax will provide certain tax restructuring advisory services for
the Debtors, as follows:
1. participate in meetings or calls necessary to assist the
Debtors with their evaluation of tax considerations of the
restructuring events;
2. advise the Debtors as they consult with their legal and
financial advisors on the cash tax effects of restructuring,
bankruptcy and the post-restructuring tax profile, including
transaction costs and/or plan of reorganization tax costs, and the
cash tax effects of these Chapter 11 Cases and emergence
transaction, including obtaining an understanding of the Debtors'
financial advisors' valuation model to consider the tax assumptions
contained therein;
3. advise the Debtors regarding the restructuring and
bankruptcy emergence process from a tax perspective, including
analyzing various structuring alternatives and modification of
debt;
4. advise the Debtors on the cancellation of debt income for
tax purposes under Internal Revenue Code ("IRC") section 108,
including cancellation of debt income generated from a
restructuring, bankruptcy emergence transaction, and/or
modification of the debt;
5. advise the Debtors on post-restructuring tax attributes and
post-bankruptcy tax attributes (tax basis in assets, tax basis in
subsidiary stock, and net operating loss carryovers) available
under the applicable tax regulations and the reduction of such
attributes based on the Debtors' operating projections;
6. assist the Debtors with any needed determinations
pertaining to historic or prospective IRC section 382 ownership
changes, ownership shifts, or potential limitations arising from
pre-restructuring or post-restructuring events;
7. advise the Debtors on net unrealized built-in gain or net
unrealized built-in loss at the time of any IRC section 382
ownership changes;
8. advise the Debtors on the effects of tax rules under IRC
sections 382(l)(5) and (l)(6);
9. assist the Debtors with U.S. federal income tax
observations in connection with any NOL protective orders or plans
(i.e., orders designed to help mitigate the risk of any further
ownership changes) recommended or drafted by legal counsel or the
Debtors' financial advisors;
10. advise the Debtors as to the treatment of post-petition
interest for federal and state income tax purposes, including the
applicability of the interest limitations under IRC section
163(j);
11. advise the Debtors as to the state and federal income tax
treatment of reorganization costs, including restructuring-related
professional fees and other costs, the categorization and analysis
of such costs, and the technical positions related thereto;
12. advise the Debtors with its evaluation and modeling of the
tax effects of liquidating, disposing of assets, or merging or
converting entities as part of the restructuring, including the
effects on federal and state tax attributes, state incentives,
apportionment and other tax planning;
13. advise the Debtors on state income tax treatment and
planning for restructuring or bankruptcy provisions in various
jurisdictions including cancellation of indebtedness calculations,
adjustments to tax attributes and limitations on tax attribute
utilization;
14. advise the Debtors regarding potential intercompany claims
between Client's affiliates, as well as relevant cross-border tax
considerations related to the intercompany claims to the extent
applicable;
15. advise the Debtors on responding to tax notices and audits
from various taxing authorities;
16. assist the Debtors with identifying potential tax refunds
and advise the Debtors on procedures for tax refunds from tax
authorities;
17. advise the Debtors on income tax return reporting of
restructuring issues and related matters;
18. review and sign, as the paid tax return preparer, the 2022
federal and state and local income tax returns for the Debtors;
19. assist the Debtors with documenting, as appropriate, the
tax analysis, development of the Debtors' opinions, recommendation,
observations, and correspondence for any proposed restructuring
alternative tax issue or other tax matter described above (does not
include preparation of information for tax provision or financial
reporting purposes);
20. advise the Debtors on non-U.S. tax implications and
structuring alternatives;
21. assist the Debtors with their efforts to calculate tax
basis in the stock of each of the Debtors' subsidiaries or other
equity interests;
22. assist the Debtors with their efforts to calculate tax
basis in assets by entity;
23. advise the Debtors regarding other state, federal, or
non-U.S. income tax questions that may arise in the course of the
engagement;
24. assist the Debtors in discussions with taxing authorities,
including the drafting of ruling requests for any proposed
restructuring alternative tax issue or other tax matter described
above (which does not include acting as the Debtors' agent);
25. assist the Debtors with providing income tax opinions
addressing any proposed restructuring alternative tax issue or
other tax matter described above (which does not include (1)
Confidential Transactions or (2) Aggressive Tax Position
Transactions (as defined by PCAOB Rule 3522));
26. assist the Debtors with analyzing the current fact
pattern(s), participating in discussions with the Debtors' tax and
non-tax personnel and its other advisors, and advising the Debtors
with respect to specific questions to ask the IRS in the ruling
request and additional questions to ask as part of the
pre-submission conference;
27. assist the Debtors with preparing for the pre-submission
conference with the IRS, conducting any research necessary before
or after the pre-submission conference, converting the
pre-submission document into a ruling request; filing the ruling
request and having initial post-filing discussions, and conducting
status checks and having substantive discussions with IRS
personnel;
28. assist the Debtors with reading the draft private letter
ruling (PLR) provided by the IRS for potential requests for
clarification(s) or additional redactions and final discussion with
IRS;
29. assist the Debtor in discussions with taxing authorities,
including the drafting of ruling requests, for any proposed
restructuring alternative tax issue or other tax matter described
above (does not include acting as the Debtors' agent); and
30. prepare income tax opinions addressing any proposed
restructuring alternative tax issue or other tax matter described
above (does not include (1) Confidential Transactions or (2)
Aggressive Tax Positions Transactions (as defined by the PCAOB Rule
3522).
B. Tax Consulting Engagement Letter. Pursuant to the terms and
conditions of the Tax Consulting Engagement Letter, Deloitte Tax
will provide certain tax advisory services for the Debtors on
federal, foreign, state and local tax matters as requested by the
Debtors.
C. Tax Compliance Work Order. Pursuant to the terms and
conditions of the Tax Compliance Work Order and the Tax Consulting
Engagement Letter, Deloitte Tax will assist the Debtors with the
preparation of the Debtors' 2022 federal, state and local income
tax returns.
The firm will be paid at these rates:
Partners $940 per hour
Directors $940 per hour
Sr. Managers $845 per hour
Managers $675 per hour
Senior Associates $550 per hour
Associates $400 per hour
The Debtor paid the firm a retainer of $600,000.
Elias Tzavelis, a partner at Deloitte Tax, disclosed in a court
filing that his firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Elias Tzavelis
Deloitte Tax LLP
30 Rockefeller Plaza, 41st Floor
New York, NY 10112
Tel: (212) 492-4000
Fax: (212) 489-1687
About Venator Materials
Venator (NYSE: VNTR) is a global manufacturer and marketer of
chemical products that comprise a broad range of pigments and
additives that bring color and vibrancy to buildings, protect and
extend product life, and reduce energy consumption. It markets its
products globally to a diversified group of industrial customers
through two segments: Titanium Dioxide, which consists of its TiO2
business, and Performance Additives, which consists of its
functional additives, color pigments and timber treatment
businesses. Based in Wynyard, U.K., Venator employs approximately
2,800 associates and sells its products in more than 106
countries.
After reaching terms of a prepackaged Chapter 11 plan, Venator
Materials, PLC and 23 affiliated companies filed petitions seeking
relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Texas
Lead Case No. Case No. 23-90301) on May 14, 2023. The Debtors'
cases have been assigned to Judge David R Jones.
The Debtors tapped Kirkland & Ellis, LLP and Kirkland & Ellis
International, LLP as legal counsels; Jackson Walker LLP as
conflicts counsel and co-counsel with Kirkland & Ellis; Alvarez &
Marsal North America, LLC as restructuring advisor; Deloitte Tax,
LLP as tax services provider; and Moelis & Company, LLC as
financial advisor and investment banker. Epiq Corporate
Restructuring, LLC is the claims, noticing and solicitation agent.
VENUS CONCEPT: Posts $7.3 Million Net Loss in Second Quarter
------------------------------------------------------------
Venus Concept Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $7.32 million on $20.07 million of revenue for the three months
ended June 30, 2023, compared to a net loss of $10.51 million on
$27.27 million of revenue for the three months ended June 30,
2022.
For the six months ended June 30, 2023, the Company reported a net
loss of $16.94 million on $40.61 million of revenue compared to a
net loss of $19.15 million on $53.67 million of revenue for the six
months ended June 30, 2022.
As of June 30, 2023, the Company had $106.15 million in total
assets, $111.70 million in total liabilities, and a total
stockholders' deficit of $5.54 million.
The Company has had recurring net operating losses and negative
cash flows from operations. As of June 30, 2023 and Dec. 31, 2022,
the Company had an accumulated deficit of $241,719,000 and
$224,105,000 respectively, though, the Company was in compliance
with all required covenants as of June 30, 2023, and Dec. 31, 2022.
Venus Concept said, "The Company's recurring losses from operations
and negative cash flows raise substantial doubt about the Company's
ability to continue as a going concern within 12 months from the
date that the unaudited condensed consolidated financial statements
are issued. The global economy, including the financial and credit
markets, has recently experienced extreme volatility and
disruptions, including increasing inflation rates, rising interest
rates, foreign currency impacts, declines in consumer confidence,
and declines in economic growth. All these factors point to
uncertainty about economic stability, and the severity and duration
of these conditions on our business cannot be predicted, and the
Company cannot assure that it will remain in compliance with the
financial covenants contained within its credit facilities."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1409269/000143774923023684/vero20230630_10q.htm
About Venus Concept
Toronto, Ontario-based Venus Concept Inc. is an innovative global
medical technology company that develops, commercializes, and
delivers minimally invasive and non-invasive medical aesthetic and
hair restoration technologies and related practice enhancement
services. The Company's aesthetic systems have been designed on a
cost-effective, proprietary and flexible platform that enables the
Company to expand beyond the aesthetic industry's traditional
markets of dermatology and plastic surgery, and into
non-traditional markets, including family and general practitioners
and aesthetic medical spas.
Venus Concept reported a net loss of $43.58 million in 2022
compared to a net loss of $22.14 million in 2021. As of Dec. 31,
2022, the Company had $125.38 million in total assets, $116.64
million in total liabilities, and $8.74 million in stockholders'
equity.
Toronto, Canada-based MNP LLP, the Company's auditor since 2019,
issued a "going concern" qualification in its report dated March
27, 2023, citing that the Company has reported recurring net losses
and negative cash flows from operations, that raise substantial
doubt about its ability to continue as a going concern.
VESTTOO LTD: Aug. 28 Deadline Set for Panel Questionnaires
----------------------------------------------------------
The United States Trustee is soliciting members for committee of
unsecured creditors in the bankruptcy case of Vesttoo Ltd.
If a party wishes to be considered for membership on any official
committee that is appointed, it must complete a questionnaire
available at
https://www.justice.gov/ust-regions-r03/page/file/1593501/download
and return by email it to Timothy Fox - Timothy.Fox@usdoj.gov - at
the Office of the United States Trustee so that it is received no
later than 4:00 p.m., on Aug. 28, 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.
VIASAT INC: Egan-Jones Retains CCC+ Senior Unsecured Ratings
------------------------------------------------------------
Egan-Jones Ratings Company on August 10, 2023, maintained its
'CCC+' foreign currency and local currency senior unsecured ratings
on debt issued by Viasat Inc. EJR also withdraws rating on
commercial paper issued by the Company.
Headquartered in Carlsbad, California, Viasat is an American
communications company based in Carlsbad, California, with
additional operations across the United States and worldwide.
VOIP.PAL.COM: Posts $21.2 Million Loss in Third Quarter
-------------------------------------------------------
VoIP-PAL.COM Inc. filed with the Securities and Exchange Commission
its Quarterly Report on Form 10-Q disclosing a loss and
comprehensive loss of $21.23 million for the three months ended
June 30, 2023, compared to a loss and comprehensive loss of $2.59
million for the three months ended June 30, 2022.
For the nine months ended June 30, 2023, the Company reported a
loss and comprehensive loss of $22.62 million compared to a loss
and comprehensive loss of $3.36 million for the nine months ended
June 30, 2022.
As of June 30, 2023, the Company had $2.20 million in total assets,
$161,374 in total liabilities, and $2.04 million in shareholders'
equity.
VOIP-Pal.com said, "The ability of the Company to continue
operations as a going concern is dependent upon raising additional
working capital, settling outstanding debts and generating
profitable operations. These material uncertainties raise
substantial doubt about the Company's ability to continue as a
going concern. Should the going concern assumption not continue to
be appropriate, further adjustments to carrying values of assets
and liabilities may be required. There can be no assurance that
capital will be available as necessary to meet these continued
developments and operating costs or, if the capital is available,
that it will be on the terms acceptable to the Company. The
issuances of additional stock by the Company may result in a
significant dilution in the equity interests of its current
shareholders. Obtaining commercial loans, assuming those loans
would be available, will increase the Company's liabilities and
future cash commitments. If the Company is unable to obtain
financing in the amounts and on terms deemed acceptable, its
business and future success may be adversely affected."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1410738/000149315223028173/form10q.htm
About VOIP-PAL.com
Since March 2004, VOIP-PAL.com has developed technology and patents
related to Voice-over-Internet Protocol (VoIP) processes. All
business activities prior to March 2004 have been abandoned and
written off to deficit. The Company operates in one reportable
segment being the acquisition and development of VoIP-related
intellectual property including patents and technology.
Vancouver, Canada-based Davidson & Company LLP, the Company's
auditor since 2015, issued a "going concern" qualification in its
report dated Dec. 23, 2022, citing that the Company has suffered
recurring losses from operations and has a net capital deficiency
that raise substantial doubt about its ability to continue as a
going concern.
WENDY'S COMPANY: Egan-Jones Retains B Senior Unsecured Ratings
--------------------------------------------------------------
Egan-Jones Ratings Company on August 3, 2023, maintained its 'B'
foreign currency and local currency senior unsecured ratings on
debt issued by Wendy's Company. EJR also withdraws rating on
commercial paper issued by the Company.
Headquartered in Dublin, Ohio, Wendy's Company operates fast-food
restaurants.
WHITE MOUNTAINS: Egan-Jones Retains BB+ Senior Unsecured Ratings
----------------------------------------------------------------
Egan-Jones Ratings Company on August 3, 2023, maintained its 'BB+'
foreign currency and local currency senior unsecured ratings on
debt issued by White Mountains Insurance Group.
Headquartered in Hanover, New Hampshire, White Mountains Insurance
Group serves customers in the United States and Bermuda.
WHITETAIL GENERAL: Unsecureds Will Get 13 Cents on Dollar in Plan
-----------------------------------------------------------------
Whitetail General Constructors LLC filed with the U.S. Bankruptcy
Court for the District of Montana an Amended Plan of Reorganization
dated August 17, 2023.
The Debtor is a limited liability company operating as a General
Construction Contractor with an in-house electrical division. The
Debtor was formed and originally operated in Texas and the
surrounding states.
Many factors including but not limited to the COVID 19 pandemic led
the Debtor to determine Texas was no longer a hospitable work
environment. Immediately prior to the Debtor's bankruptcy filing
was a pending writ of garnishment issued on the Debtor's primary
bank account threatening the ability of the Debtor to make payroll.
The judgment upon which the writ of garnishment was issued, as well
as a substantial amount of the Debtor's older debt, is associated
with a time period in 2020 when the Debtor lost a significant
amount of money on projects due to subcontractor malfeasance and or
incompetence and COVID 19 pandemic related work restrictions and
supply chain issues.
In a Chapter 7 liquidation, priority unsecured claim holders would
receive approximately 87% of their approved claims and general
unsecured claim holders would receive 0% of their approved claims.
In the Plan, priority unsecured claim holders will receive 100% of
their approved claims and general unsecured claim holders will
share in a pro rata
distribution of not less than $96,000.00 based upon their approved
claims
The inancial projections show that the Debtor will have projected
disposable income of approximately $24,000 annually beginning in
2024.
Additionally, the Plan calls for the Debtor to divide funds
recovered (if any) from the EVEN hotel construction lien as
follows: 25% to Brave National Bank, 25% to the SBA, 25% to Class 3
General Unsecured Claims and 25% to the Debtor for general
operational expenses and to offset the cost of recovering the
funds. Any funds retained by the Debtor will not go toward payment
or service of any debt (pre- or post-petition) outside of this Plan
or toward owner draws.
The Debtors' Plan shall be for a period of 5 years or until the
payments provided for in the Plan have been completed, whichever
occurs first. The first plan payments shall be made on the 15th day
of the first full month following confirmation, as such, should the
Plan be confirmed in August 2023 the first payment would come due
September 15, 2023. The final Plan payment shall be paid on or
before the 60th month following Confirmation.
This Plan of Reorganization proposes to pay creditors of the Debtor
from cash flow from operations and/or future income.
Non-priority unsecured creditors holding allowed claims will
receive distributions, which the proponent of this Plan has valued
at approximately 13 cents on the dollar. This Plan also provides
for the payment of administrative and priority claims.
Class 3 consists of Non-priority unsecured creditors. The Class 3
nonpriority unsecured creditors will share in a pro rata
distribution of $24,000 annually beginning in the second year of
the plan. The total payment is not less than the holders of such
claims would receive if the Debtor was forced to liquidate under
Chapter 7. The pro rata distribution shall be paid out to Class 3
creditors in $6,000 quarterly installments beginning on the last
day of the first fiscal quarter of 2024 and continuing through the
remaining duration of the Plan. The Debtors shall distribute with
the payments an exhibit detailing how the pro rata distribution was
calculated.
Additionally, should the Debtor be successful in recovering funds
associated with the construction lien placed on the EVEN Hotel
project then the Debtor shall make a one-time additional payment to
Class 3 creditors of a pro rata share of 25% of the funds recovered
by the Debtor from the lien claim. The remaining recovered lien
funds shall be used by the Debtor for business operations and/or to
make payments to Class 2A and Class 2B claims pursuant to the terms
of this Plan.
Class 4 includes the Interests in the Debtor held by the
pre-confirmation members of the LLC. Class 4 is unimpaired by this
Plan. On the Effective Date of the Plan Class 4 shall retain its
Interests in the Debtor as set forth prior to the Confirmation
Date.
The Debtor shall make the payments provided for in this Plan from
post-confirmation revenues generated by the operation of the
Debtor's business and the potential recovery of funds associated
with the EVEN Hotel lien. Disposition of the funds recovered from
the lien will be distributed as set forth in this Plan.
Upon Confirmation of this Plan the property of the Debtor shall
revest to the Debtor free and clear of any and all liens or
interests other than set forth in this Plan. Specifically, the
liens held by Brave National Bank, the Small Business
Administration, and Deere Credit Inc. are not impaired other than
as treated within this Plan. The Plan term is anticipated to be
five years (60 months) but may be impacted by whether the Plan is
consensually confirmed under Section 1191(a) of the Bankruptcy Code
or non consensually confirmed under Section 1191(b) of the
Bankruptcy Code.
If the Plan is consensually confirmed under Section 1191(a) of the
Bankruptcy Code, the Plan term may be 5 years but may be completed
after the third year of the Plan if all provisions and payments set
forth herein have been completed. If the Plan is non-consensually
confirmed under Section 1191(b) of the Bankruptcy Code, the Plan
term shall be 5 years. If the Plan is confirmed under Section
1191(b) of the Bankruptcy Code payments under the confirmed plan
shall be made directly by the Debtor additionally the Debtor shall
provide the Chapter 11 Sub V Trustee with a monthly report by the
14th day of each month identifying payments made under the plan in
the previous month.
A full-text copy of the Amended Plan dated August 17, 2023 is
available at https://urlcurt.com/u?l=t84PEW from PacerMonitor.com
at no charge.
Attorney for the Plan Proponent:
Matt Shimanek, Esq.
Shimanek Law, PLLC
317 East Spruce St.
Missoula, MT 59802
Tel: (406) 544-8049
Email: matt@shimaneklaw.com
About Whitetail General Constructors
Whitetail General Constructors, LLC, provides ground-up
construction and remodel or renovation services for both commercial
and residential customers. The company is based in Belgrade, Mont.
Whitetail General Constructors filed its voluntary petition for
Chapter 11 protection (Bankr. D. Mont. Case No. 23-20031) on March
16, 2023, with $1 million to $10 million in assets and $100,000 to
$500,000 in liabilities. James Jones, president of Whitetail
General Constructors, signed the petition.
Judge Benjamin P. Hursh oversees the case.
Shimanek Law, PLLC, serves as the Debtor's bankruptcy counsel.
WHITING PETROLEUM: Egan-Jones Retains BB Senior Unsecured Ratings
-----------------------------------------------------------------
Egan-Jones Ratings Company on August 3, 2023, maintained its 'BB'
foreign currency and local currency senior unsecured ratings on
debt issued by Whiting Petroleum Corporation. EJR also withdraws
rating on commercial paper issued by the Company.
Headquartered in Denver, Colorado, Whiting Petroleum Corporation
operates as an oil and gas exploration company.
WHITTAKER CLARK: Seeks to Extend Plan Exclusivity to December 22
----------------------------------------------------------------
Whittaker, Clark & Daniels, Inc. and its affiliates ask the U.S.
Bankruptcy Court for the District of New Jersey to extend its
exclusivity periods to file a chapter 11 plan and solicit
acceptances thereof to December 22 and February 20, respectively.
The Debtors stated that as of the petition date, they were
(a) engulfed in litigation related to allegations of exposure to
asbestos-containing compounds and related liabilities dating back
approximately 40 years and (b) subject to certain environmental
remediation costs and obligations of the Debtors or their
predecessors-in-interest. The Debtors explained that they must
negotiate with their core creditor constituencies, including
counsel for the majority of the asbestos claimants, the official
committee of talc claimants, and the future claimant's
representative. The Debtors asserted that given the complexity
of the issues presented by their chapter 11 cases and the
competing interests among the parties, consensus on the terms of
a chapter 11 plan may take time.
Unless extended, the Debtors' filing exclusivity period and
solicitation exclusivity period expire on August 24, 2023 and
October 23, 2023, respectively.
Whittaker, Clark & Daniels, Inc. and its affiliates are
represented by:
Joshua A. Sussberg, Esq.
KIRKLAND & ELLIS LLP
KIRKLAND & ELLIS INTERNATIONAL LLP
601 Lexington Avenue
New York, NY 10022
Tel: (212) 446-4800
Email: joshua.sussberg@kirkland.com
-and -
Chad J. Husnick, Esq.
KIRKLAND & ELLIS LLP
KIRKLAND & ELLIS INTERNATIONAL LLP
300 North LaSalle Street
Chicago, IL 60654
Tel: (312) 862-2000
Email: chad.husnick@kirkland.com
- and -
Michael D. Sirota, Esq.
Warren A. Usatine, Esq.
Felice R. Yudkin, Esq.
COLE SCHOTZ P.C.
Court Plaza North, 25 Main Street
Hackensack, NJ 07601
Tel: (201) 489-3000
Email: msirota@coleschotz.com
wusatine@coleschotz.com
fyudkin@coleschotz.com
About Whittaker Clark & Daniels
Whittaker, Clark & Daniels, Inc. and affiliates, Brilliant
National
Services Inc., Soco West Inc. and L.A. Terminals Inc., were
engaged
in nonmetallic mineral mining and quarrying.
The Debtors sought Chapter 11 protection (Bankr. D.N.J. Lead Case
No. 23-13575) on April 26, 2023. The Debtors estimated $100
million
to $500 million in assets against $1 billion to $10 billion in
liabilities as of the bankruptcy filing.
The Hon. Michael B. Kaplan is the case judge.
The Debtors tapped Kirkland & Ellis LLP as general bankruptcy
counsel; Cole Schotz P.C. as co-bankruptcy counsel; and M3
Partners
LLC as financial advisor. Stretto, Inc. is the claims agent.
Honorable Shelley Chapman was appointed as the future claimants'
representative (FCR) in these Chapter 11 cases. Willkie Farr &
Gallagher, LLP is the FCR's counsel.
WILLIAMS INDUSTRIAL: DIP Loans from PNC, EICF Win Final OK
----------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware authorized
Williams Industrial Services Group Inc., to enter into
debtor-in-possession financial credit agreements, on a final basis,
consisting of:
(i) a Super-Priority Senior Secured Revolving Credit and
Security Agreement pursuant to which, and subject to the terms and
conditions therein, PNC Bank, National Association, in its capacity
as administrative agent, and the financial institutions from time
to time party thereto, as lenders -- including any financial
institution that has issued letters of credit on behalf of any
Debtor in connection with the DIP Revolving Credit Facility --
provided the Debtors with a secured superpriority
debtor-in-possession revolving credit facility in an aggregate
principal amount of up to the lesser of (a) the Borrowing Base and
(b) $12 million, less the amount of all Prepetition Revolving
Credit Obligations, which, given the Court's approval, will be
rolled into the DIP Revolving Credit Facility; and
(ii) a Superpriority Senior Secured Term Loan, Guarantee and
Security Agreement, pursuant to which, and subject to the terms and
conditions therein, EICF Agent LLC, in its capacity as agent, and
the lenders from time to time party thereto, provided the Debtors
with a secured superpriority debtor-in-possession term loan
facility in aggregate principal amount not to exceed $19.5
million.
With the entry of the Interim DIP Order by the Court, the DIP
Revolving Lenders provided the DIP Revolving Credit Facility in the
principal amount described, and the DIP Term Loan Lenders provided
a $19.5 million multi-draw term loan facility, consisting of $14
million of term loans available immediately upon entry of the
Interim DIP Order and the balance of which will be available after
entry of the final order.
Borrowings under the DIP Credit Facilities are senior secured
obligations of the Debtors, secured by superpriority liens on the
assets of the Debtors (subject to customary exceptions). Each of
the DIP Credit Agreements contains various customary covenants, as
well as covenants mandating compliance by the Debtors with a
13-week budget, variance testing and reporting requirements, among
others. The proceeds of all or a portion of the DIP Credit
Facilities may be used for, among other things, post-petition
working capital for the Debtors, payment of costs to administer the
Cases, payment of expenses and fees of the transactions
contemplated by the Cases, payment of court-approved adequate
protection obligations under the DIP Credit Agreements, and payment
of other costs, in each case, subject to an approved budget and
such other purposes permitted under each of the DIP Credit
Agreements and the Interim DIP Order or any other Court order.
The DIP Facilities require the Debtors to meet these milestones:
(a) Within one Business Day after the Petition Date, file a
motion seeking among other things, approval of (A) bidding
procedures for a post-petition 363 sale process of all of the
Debtors' assets and (B) a sale of all or substantially all of
Debtors' assets as a result of the sale process.
(b) On or prior to the third Business Day after the Petition
Date, the Bankruptcy Court shall have entered the Interim Order in
form and substance acceptable to counsel to the Agent.
(c) Within one Business Day after the Bankruptcy Court has
entered the Interim Order, the Closing Date shall have occurred.
(d) On or prior to August 17, 2023 (or such later date as may
be agreed by the Required Lenders), the Bankruptcy Court will have
approved the Bidding Procedures.
(e) On or prior to August 17, 2023 (or such later date as may
be agreed by the Required Lenders), the Bankruptcy Court will have
entered the Final Order in form and substance acceptable to counsel
to the Agent.
(f) On or prior to August 31, 2023 (or such later date as may
be agreed by the Required Lenders), the bid deadline will have
occurred.
(g) On or prior to September 2, 2023 (or such later date as
may be agreed by the Required Lenders), a public auction of the
assets of the Debtors will be held at a time and place acceptable
to the Required Lenders.
(h) On or prior to September 3, 2023 (or such later date as
may be agreed by the Required Lenders), the Debtors will have filed
a notice of winning bid(s) with respect to the sale of all or
substantially all of the assets of Debtors with a purchaser
acceptable to the Required Lenders.
(i) On or prior to September 5, 2023 (or such later date as
may be agreed by the Required Lenders), the Bankruptcy Court will
enter an order acceptable to the Required Lenders approving the
sale of substantially all of the assets of the Debtors.
(j) On or prior to September 17, 2023 (or such later date as
may be agreed by the Required Lenders), the closing of the sale of
substantially all of the assets of the Debtors will have occurred.
A copy of the DIP Revolving Credit Facility with PNC is available
at https://tinyurl.com/54s85e64
A copy of the DIP Term Loan Credit Facility with EICF is available
at https://tinyurl.com/msyt3yrr.
A copy of the order is available at https://urlcurt.com/u?l=dkg3Di
from PacerMonitor.com.
About Williams Industrial Services Group Inc.
Atlanta, Ga.-based Williams Industrial Services Group Inc., f/k/a
Global Power Equipment Group, Inc. (OTCMKTS: WLMSQ) --
http://www.wisgrp.com/-- is a holding company that owns a
portfolio of businesses which provide a broad range of
construction, maintenance, and support services to infrastructure
customers in energy, power, and industrial end markets.
Williams Industrial Services Group and several affiliated entities
sought Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case
No. 23-10961) on July 22, 2023. As of March 31, 2023, WISG
reported total consolidated assets of $114 million and $89.8
million in total liabilities.
The Debtors have agreed to sell substantially all of the Company
and its subsidiaries' assets to EnergySolutions for $60 million,
subject to higher and better offers. The Debtors intend to
consummate a deal by the end of September.
The Debtors are advised by Thompson Hine LLP and Chipman Brown
Cicero & Cole, LLP as their legal advisors, G2 Capital Advisors,
LLC as financial advisor, and Greenhill & Co., LLC as investment
banker. Epiq Bankruptcy serves as their claims and noticing
agent.
EnergySolutions is advised by Ropes & Gray LLP as its legal
advisors.
PNC Bank, the agent under the DIP Revolving Credit Facility, is
represented by Robert B. Stein, Esq. at Blank Rome LLP.
The members of the Term Loan lending consortium led by EICF Agent,
LLC, are represented by Chapman and Cutler LLP in New York.
WILLIAMS INDUSTRIAL: Faces Stalking Horse Bid Stalemate
-------------------------------------------------------
Emily Lever of Law360 reports that a hearing on bidding procedures
for Williams Industrial Services Group's bankruptcy auction ended
in a cliffhanger Thursday, August 17, 2023, with a Delaware
bankruptcy judge taking a firm stance on stalking horse bidder
Energy Solutions Inc. refusing to serve as the backup bidder in the
auction.
About Williams Industrial
Williams Industrial Services Group (NYSE American: WLMS) --
http://www.wisgrp.com/-- is a provider of infrastructure related
services to blue-chip customers in energy and industrial end
markets, including a broad range of construction maintenance,
modification, and support services.
William Industrial and 13 of its affiliates sought relief under
Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No.
23-10961) on July 22, 2023. In the petition filed by its
president
and CEO, Tracy D. Pagliara, William Industrial reported total
assets of $114,461,000 and total liabilities of $89,831,000 as of
March 31, 2023.
The Hon. Thomas Horan oversees the cases.
The Debtors tapped Thompson Hine LLP as bankruptcy counsel; and
Chipman Brown Cicero & Cole LLP as local bankruptcy counsel. G2
Capital Advisors LLC is the financial advisor to the Debtors,
Greenville & Co. Inc is the investment banker, while Epiq
Bankruptcy Solutions LLC is the notice and claims agent.
WILLIAMS INDUSTRIAL: To Give Execs $200K Bonuses in Chapter 11
--------------------------------------------------------------
Emily Lever of Law360 reports that Williams Industrial Services
Group has asked a Delaware bankruptcy judge to approve $200,000 in
bonuses for four of its executives, conditioned on the company
successfully selling its assets, which it hopes to do by September
2023.
About Williams Industrial
Williams Industrial Services Group (NYSE American: WLMS) --
http://www.wisgrp.com/-- is a provider of infrastructure related
services to blue-chip customers in energy and industrial end
markets, including a broad range of construction maintenance,
modification, and support services.
William Industrial and 13 of its affiliates sought relief under
Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No.
23-10961) on July 22, 2023. In the petition filed by its president
and CEO, Tracy D. Pagliara, William Industrial reported total
assets of $114,461,000 and total liabilities of $89,831,000 as of
March 31, 2023.
The Hon. Thomas Horan oversees the cases.
The Debtors tapped Thompson Hine LLP as bankruptcy counsel; and
Chipman Brown Cicero & Cole LLP as local bankruptcy counsel. G2
Capital Advisors LLC is the financial advisor to the Debtors,
Greenville & Co. Inc is the investment banker, while Epiq
Bankruptcy Solutions LLC is the notice and claims agent.
WINDSOR TERRACE: Seeks $6.5MM DIP Loan from RT Lending
------------------------------------------------------
Windsor Terrace Healthcare, LLC and affiliates ask the U.S.
Bankruptcy Court for the Central District of California, San
Fernando Valley Division, for authority to use cash collateral and
obtain post-petition financing.
The Debtor seeks to obtain post-petition financing in the aggregate
principal amount not to exceed $6.5 million from RT Lending, LLC.
While there are 19 separate chapter 11 Debtors, the Debtors
essentially operate as one consolidated business entity. In
addition to having common ownership, the Debtors have common
creditors. Many of the largest unsecured creditors in these cases
are common creditors of many of the Debtors. Additionally, all of
the Debtors are co-borrowers under a common pre-petition credit
arrangement with secured creditor Midcap Funding IV Trust, as
Agent.
In addition to having approximately $63 million of collective
pre-bankruptcy general unsecured debt, there are a multitude of
asserted litigation claims with unknown liabilities, and more
litigation claims are anticipated to be asserted in the future.
Currently, there are 66 bankruptcy cases, the number of lawsuits
could well be over 100 with claims exceeding tens of lawsuits
filed against the Debtors, and the Debtors anticipate that, absent
these millions of dollars over the next few years. The current
lawsuits (and future lawsuits) have also placed significant
financial and operational burdens on the Debtors.
The Administrative Company (and the Debtors' owners) assumed
control over the administrative services of the facilities on or
around March 1, 2023, and the Debtors' owners acquired the
ownership of the Debtors on or around July 1, 2023.
After taking over, the Debtors have gained operational and economic
stability, and the Debtors are highly confident of their ability to
successfully reorganize. However, the Debtors have no economic
ability to pay their massive amount of pre-petition debt at this
time and to absorb the enormous costs of defending against the
numerous outstanding pre-petition litigation matters, all of which
were incurred while the Debtors were under prior ownership and
management.
As of the Petition Date, the Debtors estimate that they
collectively have approximately $27 million of accounts receivable
and approximately $2.5 million of operating cash, for total AR and
Cash assets of approximately $29.5 million.
Under the prior ownership and management, starting in 2017, the
Debtors were borrowers of MidCap under a secured revolving line of
credit agreement; as a result, all of the Debtors' personal
property assets (with the exception of the personal property assets
of the Debtor, Windsor Elk Grove and Rehabilitation, LLC) were
subject to existing liens in favor of MidCap, as reflected, in
part, by UCC financing statements recorded by MidCap against these
Debtors at the time the current owners acquired the Debtors and
their respective facilities.
On June 30, 2023, contemporaneously with the current owners'
acquisition of the Debtors and their affiliated businesses, two
separate "Amended and Restated Credit and Security Agreement" and
related agreements were entered into between MidCap and all of the
Debtors and certain of their non-debtor affiliates, by which the
MidCap loan agreements that had existed with the prior owners were
primarily adopted, except as amended and restated by the MidCap
Loan Agreements. The MidCap Loan Agreements serve as the primary
means by which all of the Debtors obtain funding to operate their
respective facilities.
As of the Petition Date, the total indebtedness owed under MidCap
Loan Agreements was approximately $16.5 million. Additionally,
pursuant to the MidCap Loan Agreements, and prior liens which were
existing under the original loan agreements with the prior owners,
MidCap asserts liens upon all of the Debtors' personal property
assets, and has recorded UCC financing statements against all of
the Debtors.
In addition, there are six landlords or creditors which may have
interests in the Debtor's cash by virtue of the recording of their
respective UCC financing statements against certain of the Debtors,
however, none of the Debtors currently owe any money to these
parties, and their purported liens may be subject to dispute by the
affected Debtors.
As adequate protection for the Debtors' use of cash collateral, the
Debtors propose to provide to the Secured Creditors the Adequate
Protection Liens. the Secured Creditors are further adequately
protected by the ongoing operations of the Debtors' facilities and
businesses, guarantees provided by non-debtor affiliates, joint and
several liabilities of the non-debtor affiliates as co-borrowers,
and/or a substantial equity cushion afforded by the value of the
Debtors' assets which purportedly secures the claims of the Secured
Creditors. More specifically, MidCap is owed approximately $16.5
million, and may be secured by, among other things, the AR and Cash
assets of all of the Debtors which total approximately $29.5
million, which equates to an equity cushion of almost 80%.
A hearing on the matter is set for August 30, 2023 at 1:30 p.m.
A copy of the motion is available at https://urlcurt.com/u?l=Mah7uH
from PacerMonitor.com.
About Windsor Terrace Healthcare, LLC
Windsor Terrace Healthcare, LLC are primarily engaged in the
businesses of owning and operating skilled nursing facilities
throughout the State of California. Collectively, the Debtors own
and operate 16 skilled nursing facilities, which provide 24 hour, 7
days a week and 365 days a year care to patients who reside at
those facilities. In addition to the 16 skilled nursing
facilities, the Debtors own and operate one assisted living
facility (which is Windsor Court Assisted Living, LLC), one home
health care center (which is S&F Home Health Opco I, LLC), and one
hospice care center (which is S&F Hospice Opco I, LLC). The
Debtors do not own any of the real property upon which the
facilities are located.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Lead Case No. 23-11200) on August
23, 2023. In the petition signed by Avrohom Tress, manager, the
Debtor disclosed up to $10 million in both assets and liabilities.
Judge Victoria S. Kaufman oversees the case.
Ron Bender, Esq., Monica Y. Kim, Esq., and Juliet Y. Oh, Esq. at
Levene, Neale, Bender, Yoo, and Golubchik LLP, represent the Debtor
as legal counsel. Stretto, Inc. is the Debtor's claims, noticing
and solicitation agent.
WORKSITE LABS: Taps Levene Neale Bender Yoo & Golubchik as Counsel
------------------------------------------------------------------
Worksite Labs, Inc. seeks approval from the U.S. Bankruptcy Court
for the Central District of California to employ Levene, Neale,
Bender, Yoo & Golubchik, LLP as bankruptcy counsel.
The firm's services include:
a. Advising the Debtor with regard to the requirements of the
bankruptcy court, Bankruptcy Code, Bankruptcy Rules and the Office
of the U.S. Trustee as they pertain to the Debtor;
b. Advising the Debtor with regard to certain rights and
remedies of its bankruptcy estate and the rights, claims and
interests of creditors;
c. Representing the Debtor in any proceeding or hearing in the
bankruptcy court involving its estate unless the Debtor is
represented in such proceeding or hearing by a special counsel;
d. Conducting examinations of witnesses, claimants or adverse
parties and representing the Debtor in any adversary proceeding
except to the extent that any such adversary proceeding is in an
area outside of Levene's expertise or which is beyond the firm's
staffing capabilities;
e. Preparing and assisting the Debtor in the preparation of
reports and legal papers;
f. Representing the Debtor with regard to obtaining use of
debtor-in-possession financing or cash collateral;
g. Assisting the Debtor in any asset sale process;
h. Assisting the Debtor in the negotiation, formulation,
preparation and confirmation of a plan of reorganization and the
preparation and approval of a disclosure statement; and
i. Other necessary legal services.
The firm will be paid at these rates:
Attorneys $450 to $690 per hour
Paraprofessionals $295 per hour
In addition, the firm will receive reimbursement for out-of-pocket
expenses incurred.
The retainer fee is $200,000.
David Neale, Esq., a partner at Levene, disclosed in a court filing
that his firm is a "disinterested person" pursuant to Section
101(14) of the Bankruptcy Code.
The firm can be reached at:
David B. Golubchik, Esq.
Anthony A. Friedman, Esq.
John-Patrick M. Fritz, Esq.
Levene, Neale, Bender, Yoo & Golubchik, LLP
2818 La Cienega Avenue
Los Angeles, CA 90034
Tel: (310) 229-1234
Fax: (310) 229-1244
Email: dbg@lnbyg.com
aaf@lnbyg.com
jpf@lnbyg.com
About Worksite Labs
Worksite Labs, Inc., a company in Long Beach, Calif., filed its
voluntary Chapter 11 petition (Bankr. C.D. Calif. Case No.
23-14539) on July 20, 2023, with $1 million to $10 million in both
assets and liabilities. Gary Frazier, chief executive officer,
signed the petition.
Judge Vincent P. Zurzolo oversees the case.
The Debtor tapped Levene, Neale, Bender, Yoo & Golubchik, LLP as
bankruptcy counsel; Reliance Group, LLP as corporate counsel; and
Carlson & Jayakumar, LLP as healthcare regulatory counsel.
WORLD SECURITY: Seeks to Hire Tamarez CPA as Accountant
-------------------------------------------------------
World Security Services Inc. seeks approval from the U.S.
Bankruptcy Court for the District of Puerto Rico to hire Tamarez
CPA, LLC as accountant.
The firm will render these services:
a) reconcile financial information to assist the Debtor in the
preparation of monthly operating reports;
b) assist in the reconciliation and clarification of proofs of
claim filed and amount due to creditors;
c) provide general accounting and tax services to prepare
quarterly and year-end reports and income tax; and
d) assist in the preparation of the supporting documents for
the Chapter 11 reorganization plan, including negotiation with
creditors.
Tamarez CPA will charge these hourly fees:
Albert Tamarez-Vasquez, CPA, CIRA $165 per hour
CPA Supervisor $110 per hour
Senior Accountant $90 per hour
Staff Accountant $70 per hour
The firm received a post-petition retainer in the amount of
$5,000.
Albert Tamarez Vasquez, CPA, owner of Tamarez CPA, 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:
Albert Tamarez Vasquez, CPA
Tamarez CPA, LLC
1519 Ave. Ponce De Leon, Suite 412
San Juan, PR 00909
Telephone: (787) 795-2855
Facsimile: (787) 200-7912
Email: atamarez@tamarezcpa.com
About World Security Services
World Security Services, Inc. sought protection for relief under
Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 23-01542)
on May 22, 2023, with as much as $1 million in both assets and
liabilities. Judge Maria De Los Angeles Gonzalez oversees the
case.
Carlos Alberto Ruiz, Esq., at Licenciado Carlos Alberto Ruiz, LLC
represents the Debtor as counsel.
XTREME LINES: Case Summary & 17 Unsecured Creditors
---------------------------------------------------
Debtor: Xtreme Lines Trasport Service, Inc.
5465 Legacy Dr. Ste 650
Plano, TX 75024
Chapter 11 Petition Date: August 25, 2023
Court: United States Bankruptcy Court
Eastern District of Texas
Case No.: 23-41548
Debtor's Counsel: Eric A. Liepins, Esq.
ERIC A. LIEPINS
12770 Coit Road
Suite 850
Dallas, TX 75251
Tel: 972-991-5591
Fax: 972-991-5788
Email: eric@ealpc.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Wade Jones as director.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 17 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/5UGUZKQ/Xtreme_Lines_Trasport_Service__txebke-23-41548__0001.0.pdf?mcid=tGE4TAMA
YELLOW CORP: Estes Submits $1.3 Billion Bid for Terminals
---------------------------------------------------------
Reuters reports that trucking firm Estes Express has submitted a
$1.3 billion bid to acquire bankrupt Yellow Corp's shipment
centers.
According to Bloomberg, Yellow lawyer Allyson Smith said Thursday,
August 17, 2023, during a court hearing that Estes Express Lines'
offer is in the form of a so-called stalking horse bid. Estes' bid
will set the floor price for Yellow's portfolio of terminals at a
potential Chapter 11 auction if competing offers are made. Yellow
will also sell its tractors and trailers.
Ms. Smith, Reuters reported, said the Estes proposal was received
while Yellow was negotiating several offers for bankruptcy
financing.
Estes had offered to provide a bankruptcy loan as part of its bid,
but Yellow instead decided to move forward with a $142.5 million
loan provided by hedge fund Citadel and MFN Partners, which is
Yellow's largest shareholder, Smith told U.S. Bankruptcy Judge
Craig Goldblatt at a hearing in Wilmington, Delaware.
The new loan contemplates a 180-day period for Yellow to solicit
higher bids for its real estate assets and sell its fleet of
trucks. Estes' offer for Yellow's shipping terminals comes close to
covering all of Yellow's pre-bankruptcy debt, including more than
$700 million owed to the U.S. Treasury Department for a 2020
pandemic relief loan, Smith said.
Citadel stepped into the picture in recent days, buying out
approximately $500 million in pre-bankruptcy debt that Yellow owed
to Apollo Global Management.
Apollo initially offered to fund Yellow's bankruptcy with a $142.5
million loan, but instead bowed out after Yellow received competing
offers with lower fees and interest rates.
The new financing provided by Citadel and MFN will save Yellow
between $27 million and $40 million in fees when compared with the
Apollo loan, and it will also provide Yellow with twice as much
time to sell its assets, Smith said.
Yellow will submit the new loan to Judge Goldblatt for approval
once the details are finalized, Smith said.
Yellow filed for bankruptcy on Aug. 6 with just $39 million cash on
hand, which the company said was not enough to run a months-long
bankruptcy sale for its 12,000 trucks, real estate holdings and
other assets.
Yellow blamed its collapse on a labor dispute with the
International Brotherhood of Teamsters union. The union, which
represents about 22,000 Yellow employees, said the Nashville,
Tennessee-based company "mismanaged" its way to bankruptcy.
About Yellow Corp
Yellow Corporation (NASDAQ: YELL) -- 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.
YELLOW CORP: Sept 18 Final Hearing on Alter Domus DIP Loan
-----------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware authorized
Yellow Corporation and affiliates to use cash collateral and obtain
postpetition financing, on an interim basis. A final hearing on
the matter is set for September 18, 2023 at 2 p.m.
Alter Domus Products Corp. serves as Administrative Agent and
Collateral Agent under the DIP Facility.
The DIP Facility is a $142.5 million new-money senior secured
super-priority debtor-in-possession facility. The DIP Facility
also includes the roll up of $501.584 million in prepetition term
debt under the Amended and Restated Credit Agreement, dated as of
September 11, 2019, and amended and restated on April 7, 2020, July
7, 2020, and July 7, 2023 (but effective as of June 30, 2023),
among Yellow Corporation and certain of its subsidiaries, as
guarantors, and Alter Domus Products Corp. (f/k/a Cortland Products
Corp.), as administrative agent and collateral agent.
The $142.5 million postpetition credit facility consists of:
(A) A junior secured, superpriority debtor in possession
multi-draw term loan facility by Yellow Corp, as borrower, the DIP
Guarantors, MFN Partners, L.P., and Alter Domus Products Corp., as
administrative agent and collateral agent, consisting of new money
term loans in an aggregate principal amount of $42.5 million, of
which:
(i) $17.9 million will be made available to be
drawn upon entry of the Interim Order; and
(ii) $24.6 million will be made available to be
drawn (including (a) $11.2 million on the
Second Draw and (b) $13.4 million on the Third
Draw subject to certain conditions set forth
in the DIP Term Sheet and, when applicable, a
credit agreement governing the Junior DIP
Facility on the terms set forth in the DIP
Term Sheet, including the filing by the Debtors
of a form of order approving bid procedures in
form and substance acceptable to the Junior DIP
Lender and the B-2 Lenders;
(B) An incremental postpetition tranche of the B-2 Facility
constituting a senior secured, superpriority debtor in possession
multi-draw term loan facility, subject to the terms therein, the
DIP Term Sheet and the Prepetition B-2 Credit Agreement, as
modified by the Interim Order and the DIP Term Sheet, which will be
superseded by the DIP Credit Agreement (if the Postpetition B-2
Lenders and the Debtors agree) or an amendment to the B-2 Credit
Agreement, subject to the Documentation Principles set forth in the
DIP Term Sheet, consisting of new money term loans provided by
Citadel Credit Master LLC in an aggregate principal amount of $100
million of which:
(i) $42.1 million will be made available upon entry
of the Interim Order;
(ii) $26.3 million will be made available to be drawn
subject to certain conditions set forth in the
B-2 Amendment or DIP Credit Agreement, as
applicable, including the filing by the Debtors
of the Proposed Bid Procedures Order; and
(iii) $31.6 million will be made available to be drawn
upon the Court's entry of the Final Order; and
(C) Up to $70 million will be made available by the Junior DIP
Lender, at the Debtors' request following the Third Draw, which
amount may be drawn in one or multiple draws at the Debtors'
discretion.
The DIP facility is due and payable through the earliest to occur
of:
-- February [__], 2024; provided, that the Scheduled
Maturity Date may be extended by the Junior DIP Lender
to May [__], 2024, with the Debtors' consent; provided,
however, that the Scheduled Maturity Date may not be
extended unless and until all Prepetition UST Tranche
A Obligations and Prepetition UST Tranche B Obligations
have been paid in full in cash);
-- The effective date or the date of the substantial
consummation that has been confirmed by an order of the
Bankruptcy Court;
-- The date the Bankruptcy Court orders the conversion of
the Chapter 11 Case of any of the Loan Parties to a
liquidation under Chapter 7 of the Bankruptcy Code;
-- The date the Bankruptcy Court orders the dismissal of
the Chapter 11 Case of any of the Loan Parties;
-- The acceleration of the loans or termination of the
commitments under the DIP Facility, including as a
result of the occurrence of an Event of Default; and
-- The date that is 45 calendar days after the Petition
Date if the Final Order Entry Date will not have
occurred by such date.
The Debtors are required the comply with these milestones:
1. No later than 15 calendar days after the Petition Date,
the Bankruptcy Court will have entered the Interim Order
and the UST Adequate Protection Order, each in form and
substance satisfactory to the Junior DIP Lender, the
Junior DIP Agent, the B-2 Agent, and the B-2 Lenders;
2. By no later than 15 calendar days entry of the Interim
Order, the Canadian Court will have issued the Canadian
Initial Recognition Order, the Canadian Supplemental
Order and the Canadian Interim DIP Recognition Order;
3. No later than 30 calendar days after the Petition
Date, the Bankruptcy Court will have entered the
Bidding Procedures Order, in form and substance
reasonably satisfactory to the Junior DIP Lender;
4. By no later than 15 calendar days after entry of the
Final Order, the Borrower, in its capacity as foreign
representative on behalf of the Debtors, will have
filed a motion with the Canadian Court for the
recognition of, and the Canadian Court will have
issued, the Canadian Final DIP Recognition Order;
5. No later than 45 calendar days after the Petition Date,
the Bankruptcy Court will have entered the Final Order,
in form and substance satisfactory in all material
respects to the Junior DIP Lender, the Junior DIP Agent,
the B-2 Agent, and the B-2 Lenders;
6. No later than 90 calendar days after the Petition Date,
the Debtors will have received unique, non-duplicative
binding cash bids for the B-2 Priority Collateral
pursuant to the Bidding Procedures Order that would
generate, in the aggregate, net cash proceeds of at
least $250 million; and
7. No earlier than 120 calendar days after the Petition Date
(which may be extended to 150 calendar days after the
Petition Date with (i) the consent of the Prepetition ABL
Agent, the B-2 Agent, and the UST Secured Parties (in
each case such consent not to be unreasonably withheld),
and (ii) the consent of the Junior DIP Lender in its
sole discretion) and no later than 150 calendar days
after the Petition Date (which may be extended to 180
calendar days after the Petition Date with (i) the
consent of the Prepetition ABL Agent, the Prepetition
B-2 Agent, and the UST Secured Parties (in each case such
consent not to be unreasonably withheld), and (ii) the
consent of the Junior DIP Lender in its sole discretion),
the Debtors will have consummated one or more sales of
all or substantially all of their assets in accordance
with the Bidding Procedures Order that generates net
cash proceeds in respect of the B-2 Priority Collateral
of at least 100% of outstanding obligations under the
Junior DIP Facility and the B-2 Obligations and will
have indefeasibly repaid the B-2 Obligations and
outstanding obligations under the Junior DIP Facility
in full in cash.
The Debtors have approximately $1.2 billion in total funded debt
obligations. This amount consists of a $485.3 million senior
secured term loan, and approximately $737 million in US Treasury
term loans, and $0.9 million in borrowings under the ABL Facility.
In addition, the Debtors have approximately $359.3 million of
undrawn letters of credit issued under the ABL Facility.
On July 7, 2020, Yellow and certain of its subsidiaries, as
guarantors, entered into the UST Tranche A Term Loan Credit
Agreement with The Bank of New York Mellon, as administrative agent
and collateral agent and the UST Tranche B Term Loan Credit
Agreement with The Bank of New York Mellon, as administrative agent
and collateral agent, through which the United States Treasury
committed an aggregate principal amount of $700 million to the
Company pursuant to the CARES Act. The obligations of the Company
under the UST Credit Agreements are guaranteed by the Term
Guarantors.
The UST Credit Agreements have maturity dates of September 30,
2024, with a single payment at maturity of the outstanding balance.
The Tranche A UST Credit Agreement consists of a $300 million term
loan and bears interest at a rate of the Adjusted LIBO rate
(subject to a floor of 1.0%) plus a margin of 3.5% per annum,
consisting of 1.50% in cash and the remainder paid-in-kind.
Proceeds from the Tranche A UST Credit Agreement were used to meet
Yellow's contractual obligations, maintain working capital and
finance technology and infrastructure development. The Tranche B
UST Credit Agreement consists of a $400 million term loan and bears
interest at a rate of the Adjusted LIBO rate (subject to a floor of
1.0%) plus a margin of 3.5% per annum, paid in cash. Proceeds from
the Tranche B UST Credit Agreement were used predominantly for the
acquisition of tractors and trailers.
Obligations under the UST Credit Agreements are secured by a
perfected first priority security interest in the escrow or
controlled account supporting the respective UST Credit Facility,
certain tractors and trailers (solely in the case of the Tranche B
UST Credit Agreement) and a perfected junior priority security
interest (subject in each case to permitted liens) in substantially
all other assets of the Company and the Term Guarantors, subject to
certain exceptions.
On July 7, 2023, but effective as of June 30, 2023, the Company and
certain of its subsidiaries entered into a waiver agreement under
the UST Credit Agreements. The UST Credit Agreement Waiver provides
for a waiver of the minimum Consolidated EBITDA financial covenant
of $200 million LTM set forth in the UST Credit Agreements for the
covenant testing period that ended on June 30, 2023.
As of the Petition Date, approximately $337 million in borrowings
remain outstanding under the Tranche A UST Credit Agreement, and
approximately $400 million in borrowings remain outstanding under
the Tranche B UST Credit Agreement.
On September 11, 2019, Yellow and certain of its subsidiaries, as
guarantors, amended and restated the existing credit facilities
under the credit agreement dated February 13, 2014 and entered into
a $600 million term loan agreement with the Prepetition B-2
Lenders, and Alter Domus, as administrative agent and collateral
agent. Yellow's obligations under the Prepetition B-2 Credit
Agreement are guaranteed by the Term Guarantors.
The Prepetition B-2 Term Loan has a maturity date of June 30, 2024,
with a single payment due at maturity of the outstanding balance.
The Prepetition B-2 Term Loan initially bore interest at the
Adjusted LIBO rate (subject to a floor of 1%) plus a margin of 7.5%
per annum, payable at least quarterly in cash, subject to a 1.0%
margin step down in the event the Company achieves greater than
$400 million in trailing-twelve-month Adjusted EBITDA. Obligations
under the Prepetition B-2 Term Loan are secured by a perfected
first-priority security interest in (subject to permitted liens)
assets of the Company and the Term Guarantors, including but not
limited to all of the Company's wholly owned terminals, tractors
and trailers other than the tractors and trailers funded by the UST
Tranche B loan, subject to certain limited exceptions.
On April 7, 2020, the Company and certain of its subsidiaries
entered into Amendment No. 1 to the Prepetition B-2 Term Loan as a
result of expected future covenant and liquidity tightening due to
unprecedented economic deterioration. The First Term Loan Amendment
principally provided additional liquidity allowing the Company to
defer quarterly interest payments for the quarter ended March 31,
2020 and the quarter ending June 30, 2020 with almost all of such
interest to be paid-in-kind. The First Term Loan Amendment also
provided for a waiver with respect to the Adjusted EBITDA financial
covenant during each fiscal quarter during the fiscal year ending
December 31, 2020. The interest rate was retroactively reset to a
fixed 14% during the first six months of 2020.
In July 2023, the Company closed on the sale of an obsolete
terminal property in Compton, California, with a third-party
purchaser for a sale price of $80 million. In accordance with the
terms and conditions of the Third Term Loan Amendment, the net
proceeds of the sale, totaling approximately $79.5 million, were
applied to the outstanding principal balance of the Prepetition B-2
Term Loan.
As of the Petition Date, approximately $485.3 million in borrowings
remain outstanding under the Prepetition B-2 Term Loan.
On February 13, 2014, Yellow entered into a $450 million
asset-based loan facility from a syndicate of banks arranged by
Citizens Business Capital, Merrill Lynch, Pierce, Fenner & Smith
and CIT Finance LLC. Yellow and its subsidiaries, YRC Freight,
Reddaway, Holland and New Penn are borrowers under the ABL
Facility, and certain of the Company's domestic subsidiaries are
guarantors thereunder. Availability under the ABL Facility is
derived by reducing the amount that may be advanced against
eligible receivables plus eligible borrowing base cash by certain
reserves imposed by the ABL Agent and the Company's outstanding
letters of credit and revolving loans. Eligible borrowing base cash
is cash that is deposited from time to time into a segregated
restricted account and is included in "Restricted amounts held in
escrow" in the accompanying consolidated balance sheet.
At Yellow's option, borrowings under the ABL Facility bear interest
at either: (i) the applicable USD LIBOR rate plus 2.25%, as
amended, or (ii) the base rate (as defined in the ABL Facility)
plus 1.25%, as amended. Letter of credit fees equal to the
applicable USD LIBOR margin in effect, 2.25% as amended, are
charged quarterly in arrears on the average daily stated amount of
all letters of credit outstanding during the quarter. Unused line
fees are charged quarterly in arrears (such unused line fee
percentage is equal to 0.375% per annum if the average revolver
usage is less than 50% or 0.25% per annum if the average revolver
usage is greater than 50%). The ABL Facility is secured by a
perfected first-priority security interest in accounts receivable,
cash, deposit accounts and other assets related to accounts
receivable of Yellow and the other loan parties and an additional
second priority security interest in substantially all remaining
assets of the borrowers and the guarantors.
On October 31, 2022, the Company and certain of its subsidiaries
entered into Amendment No. 7 in which the maturity date of the ABL
Facility was extended to January 9, 2026 and included a springing
maturity commencing 30 days prior to the maturity of any of the
Term Debt, the UST Tranche A Facility Indebtedness, or the UST
Tranche B Facility Indebtedness. The amended facility has an
increased capacity of $50 million up to $500 million and an
interest rate of SOFR plus 1.75% plus a credit spread adjustment of
.10%.
As of the Petition Date, $900,000 in borrowings remain outstanding
under the ABL Facility in addition to approximately $359.288
million of undrawn letters of credit.
Pursuant to the DIP Facility, the Debtors will provide adequate
protection to the Prepetition Secured Parties and the Prepetition
UST Secured Parties, consisting of replacement liens, payment of
professional fees, interest and fees payments, and information and
reporting rights.
Specifically, as security for the DIP Obligations, the Debtors will
grant the DIP Agent, for the benefit of the DIP Lenders, a first
lien on all previously unencumbered assets of the Debtors and a
priming lien on certain Prepetition Collateral, subject to the
Prepetition Secured Parties' collateral priority scheme as set
forth in the Prepetition Intercreditor Agreement. Further, the
Approved Budget will be subject to the consultation rights of the
Prepetition ABL Secured Parties and consent rights of the
Prepetition UST Secured Parties.
A copy of the order is available at https://urlcurt.com/u?l=fnKOnA
from PacerMonitor.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 Joshua M. Spencer, Esq. at Holland &
Knight LLP.
YELLOW CORPORATION: Sec. 341(a) Meeting Set for Sept. 14
--------------------------------------------------------
The U.S. Trustee for Region 3 will convene a meeting of creditors
of Yellow Corporation and its debtor-affiliates on Sept. 14, 2023,
at 2:00 p.m. (ET), at J. Caleb Boggs Federal Building, 844 King
Street, 3rd Floor, Room 3209, Wilmington, Delaware 19801. The
meeting will be held by telephone:
Trustee: Office of the US Trustee
Call in number: 888-98207413
Participant Code: 5639077#
The 11 U.S.C. Sec. 341(a) meeting may be continued or adjourned to
a later date. If so, the date will be on the court docket. The
Debtor's representative must attend the meeting to be questioned
under oath. Creditors may attend, but are not required to do so.
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.
YUNHONG CTI: Incurs $149K Net Loss in Second Quarter
----------------------------------------------------
Yunhong CTI Ltd. filed with the Securities and Exchange Commission
its Quarterly Report on Form 10-Q disclosing a net loss
attributable to the Company of $149,000 on $4.06 million of net
sales for the three months ended June 30, 2023, compared to a net
loss attributable to the Company of $399,000 on $4.42 million of
net sales for the three months ended June 30, 2022.
For the six months ended June 30, 2023, the Company reported net
income attributable to the Company of $247,000 on $9.11 million of
net sales compared to a net loss attributable to the Company of
$420,000 on $10.21 million of net sales for the six months ended
June 30, 2022.
As of June 30, 2023, the Company had $15.63 million in total
assets, $11.74 million in total liabilities, and $3.89 million in
total stockholders' equity.
Yunhong CTI said, "The Company's cash resources from operations may
be insufficient to meet its anticipated needs during the next
twelve months. If the Company does not execute its plan, it may
require additional financing to fund its future planned
operations.
"The ability of the Company to continue as a going concern is
dependent on the Company obtaining adequate capital to fund
operating losses. Management's plans to continue as a going
concern include raising additional capital through sales of equity
securities and borrowing, continuing to focus our Company on the
most profitable elements, and exploring alternative funding sources
on an as needed basis. However, management cannot provide any
assurances that the Company will be successful in accomplishing any
of its plans. The COVID-19 pandemic, supply chain challenges, and
inflationary pressures (including cost and availability of helium)
have impacted the Company's business operations to some extent and
is expected to continue to do so and these impacts may include
reduced access to capital. The ability of the Company to continue
as a going concern may be dependent upon its ability to
successfully secure other sources of financing and attain
profitable operations. There is substantial doubt about the ability
of the Company to continue as a going concern for one year from the
issuance of the accompanying consolidated financial statements."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1042187/000149315223027702/form10-q.htm
About Yunhong CTI
Lake Barrington, Illinois-based Yunhong CTI Ltd. --
www.ctiindustries.com -- develops, produces, distributes and sells
a number of consumer products throughout the United States and in
over 30 other countries, and it produces film products for
commercial and industrial uses in the United States. Many of the
Company's products utilize flexible films and, for a number of
years, it has been a leading developer of innovative products which
employ flexible films including novelty balloons, pouches and films
for commercial packaging applications.
Yunhong CTI reported a net loss of $1.47 million for the 12 months
ended Dec. 31, 2022, compared to a net loss of $7.55 million for
the 12 months ended Dec. 31, 2021. As of Dec. 31, 2022, the
Company had $15.28 million in total assets, $12.54 million in total
liabilities, and $2.75 million in total stockholders' equity.
Lakewood, CO-based BF Borgers CPA PC, the Company's auditor since
2022, issued a "going concern" qualification in its report dated
April 12, 2023, citing that the Company's significant operating
losses raise substantial doubt about its ability to continue as a
going concern.
[^] BOND PRICING: For the Week from August 21 to 25, 2023
---------------------------------------------------------
Company Ticker Coupon Bid Price Maturity
------- ------ ------ --------- --------
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Acorda Therapeutics Inc ACOR 6.000 64.355 12/1/2024
Air Methods Corp AIRM 8.000 1.000 5/15/2025
Air Methods Corp AIRM 8.000 0.623 5/15/2025
American Electric
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Amyris Inc AMRS 1.500 11.250 11/15/2026
Audacy Capital Corp CBSR 6.750 1.327 3/31/2029
Audacy Capital Corp CBSR 6.500 1.489 5/1/2027
Audacy Capital Corp CBSR 6.750 1.219 3/31/2029
BPZ Resources Inc BPZR 6.500 3.017 3/1/2049
Bank of America Corp BAC 5.240 96.864 9/12/2058
Bed Bath & Beyond Inc BBBY 5.165 0.400 8/1/2044
Bed Bath & Beyond Inc BBBY 4.915 0.740 8/1/2034
Biora Therapeutics Inc BIOR 7.250 54.043 12/1/2025
Boingo Wireless Inc WIFI 1.000 93.125 10/1/2023
Brixmor LLC BRX 6.900 9.875 2/15/2028
Brunswick Corp/DE BC 7.375 99.689 9/1/2023
Cano Health LLC CANHEA 6.250 13.736 10/1/2028
Cano Health LLC CANHEA 6.250 17.018 10/1/2028
Citigroup Global
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Inc/United States C 4.298 95.451 9/28/2023
Citigroup Inc C 4.069 97.413 8/30/2023
Clovis Oncology Inc CLVS 1.250 10.704 5/1/2025
Clovis Oncology Inc CLVS 4.500 9.970 8/1/2024
Clovis Oncology Inc CLVS 4.500 9.681 8/1/2024
Curo Group Holdings Corp CURO 7.500 33.455 8/1/2028
Curo Group Holdings Corp CURO 7.500 24.328 8/1/2028
DIRECTV Holdings LLC /
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DIRECTV Holdings LLC /
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Financing Co Inc DTV 6.350 9.783 3/15/2040
Danimer Scientific Inc DNMR 3.250 34.646 12/15/2026
Diamond Sports Group
LLC / Diamond
Sports Finance Co DSPORT 5.375 2.625 8/15/2026
Diamond Sports Group
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Sports Finance Co DSPORT 6.625 2.125 8/15/2027
Diamond Sports Group
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Sports Finance Co DSPORT 5.375 2.712 8/15/2026
Diamond Sports Group
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Diamond Sports Group
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Diamond Sports Group
LLC / Diamond
Sports Finance Co DSPORT 6.625 2.000 8/15/2027
Diamond Sports Group
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Endo Finance LLC /
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Endo Finance LLC /
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Energy Conversion
Devices Inc ENER 3.000 0.551 6/15/2013
Envision Healthcare Corp EVHC 8.750 3.250 10/15/2026
Envision Healthcare Corp EVHC 8.750 2.962 10/15/2026
Exela Intermediate
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Finance Inc EXLINT 11.500 10.684 7/15/2026
Exela Intermediate
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Federal Home Loan Banks FHLB 3.510 99.383 8/28/2023
Federal Home Loan Banks FHLB 3.300 99.384 8/28/2023
Federal Home Loan Banks FHLB 3.350 99.386 8/28/2023
Federal Home Loan Banks FHLB 3.500 99.388 8/28/2023
Federal Home Loan Banks FHLB 2.350 99.720 8/30/2023
Federal Home Loan Banks FHLB 3.050 99.733 8/30/2023
Federal Home Loan Banks FHLB 3.375 99.385 8/28/2023
Federal Home Loan Banks FHLB 3.375 99.385 8/28/2023
Federal Home Loan Banks FHLB 3.400 99.386 8/28/2023
Federal Home Loan Banks FHLB 3.500 99.387 8/28/2023
Federal Home Loan Banks FHLB 3.350 99.385 8/28/2023
Federal Home Loan Banks FHLB 0.500 70.533 11/24/2023
Federal Home Loan
Mortgage Corp FHLMC 5.150 99.247 8/28/2025
Federal Home Loan
Mortgage Corp FHLMC 5.000 52.269 8/28/2024
Federal National
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First Republic Bank/CA FRCB 4.375 0.188 8/1/2046
First Republic Bank/CA FRCB 4.625 0.388 2/13/2047
GNC Holdings Inc GNC 1.500 0.475 8/15/2020
Goldman Sachs
Group Inc/The GS 4.000 99.836 8/30/2023
Goldman Sachs
Group Inc/The GS 4.578 99.950 8/30/2023
Goodman Networks Inc GOODNT 8.000 1.000 5/31/2022
H-Food Holdings LLC /
Hearthside
Finance Co Inc HEFOSO 8.500 39.445 6/1/2026
H-Food Holdings LLC /
Hearthside
Finance Co Inc HEFOSO 8.500 39.430 6/1/2026
Hallmark Financial
Services Inc HALL 6.250 19.775 8/15/2029
Inseego Corp INSG 3.250 40.785 5/1/2025
Invacare Corp IVC 5.000 83.125 11/15/2024
Invacare Corp IVC 4.250 3.853 3/15/2026
JPMorgan Chase Bank NA JPM 2.000 81.597 9/10/2031
JPMorgan Chase
Financial Co LLC JPM 3.500 98.736 9/18/2023
Lennar Corp LEN 5.875 99.638 11/15/2024
Lightning eMotors Inc ZEV 7.500 61.719 5/15/2024
MBIA Insurance Corp MBI 16.830 2.020 1/15/2033
MBIA Insurance Corp MBI 16.926 1.931 1/15/2033
Macquarie
Infrastructure
Holdings LLC MIC 2.000 97.514 10/1/2023
Mashantucket Western
Pequot Tribe MASHTU 7.350 41.250 7/1/2026
Metropolitan Life
Global Funding I MET 0.450 99.932 9/1/2023
Metropolitan Life
Global Funding I MET 0.450 99.878 9/1/2023
Morgan Stanley MS 1.800 71.834 8/27/2036
Morgan Stanley
Finance LLC MS 12.100 21.210 11/24/2023
NOA Bancorp Inc NOABAN 6.700 92.716 11/1/2028
NOA Bancorp Inc NOABAN 6.700 92.716 11/1/2028
National CineMedia LLC NATCIN 5.750 5.000 8/15/2026
New York Community
Bancorp Inc NYCB 5.900 93.814 11/6/2028
OMX Timber Finance
Investments II LLC OMX 5.540 0.850 1/29/2020
Paramount Global PARA 7.875 99.810 9/1/2023
Party City Holdings Inc PRTY 8.750 14.750 2/15/2026
Party City Holdings Inc PRTY 10.821 12.643 7/15/2025
Party City Holdings Inc PRTY 8.750 14.500 2/15/2026
Party City Holdings Inc PRTY 6.625 0.789 8/1/2026
Party City Holdings Inc PRTY 6.625 0.789 8/1/2026
Party City Holdings Inc PRTY 10.821 12.643 7/15/2025
PeoplesBancorp MHC PEOPBC 5.375 91.991 11/15/2028
PeoplesBancorp MHC PEOPBC 5.375 91.991 11/15/2028
Photo Holdings
Merger Sub Inc SFLY 8.500 47.151 10/1/2026
Photo Holdings
Merger Sub Inc SFLY 8.500 47.151 10/1/2026
Porch Group Inc PRCH 0.750 36.000 9/15/2026
Pricoa Global Funding I PRU 3.450 99.915 9/1/2023
Radiology Partners Inc RADPAR 9.250 38.321 2/1/2028
Radiology Partners Inc RADPAR 9.250 39.140 2/1/2028
Renco Metals Inc RENCO 11.500 24.875 7/1/2003
Rite Aid Corp RAD 7.700 12.850 2/15/2027
Rite Aid Corp RAD 7.500 59.321 7/1/2025
Rite Aid Corp RAD 7.500 58.142 7/1/2025
Rite Aid Corp RAD 6.875 20.401 12/15/2028
Rite Aid Corp RAD 6.875 20.401 12/15/2028
RumbleON Inc RMBL 6.750 42.010 1/1/2025
SBL Holdings Inc SECBEN 7.000 60.000 N/A
SBL Holdings Inc SECBEN 7.000 62.625 N/A
SVB Financial Group SIVB 4.000 6.875 N/A
SVB Financial Group SIVB 4.100 6.875 N/A
SVB Financial Group SIVB 4.250 6.875 N/A
SVB Financial Group SIVB 4.700 6.125 N/A
Shift Technologies Inc SFT 4.750 9.430 5/15/2026
Signature Bank/
New York NY SBNY 4.000 2.000 10/15/2030
Signature Bank/
New York NY SBNY 4.125 2.125 11/1/2029
Talen Energy Supply LLC TLN 6.500 33.676 6/1/2025
Talen Energy Supply LLC TLN 10.500 34.750 1/15/2026
Talen Energy Supply LLC TLN 6.500 22.750 9/15/2024
Talen Energy Supply LLC TLN 10.500 34.750 1/15/2026
Talen Energy Supply LLC TLN 6.500 22.750 9/15/2024
Talen Energy Supply LLC TLN 7.000 22.750 10/15/2027
Talen Energy Supply LLC TLN 10.500 34.750 1/15/2026
TerraVia Holdings Inc TVIA 5.000 4.644 10/1/2019
Tricida Inc TCDA 3.500 10.023 5/15/2027
US Renal Care Inc USRENA 10.625 38.907 7/15/2027
US Renal Care Inc USRENA 10.625 39.950 7/15/2027
UpHealth Inc UPH 6.250 40.500 6/15/2026
Veritone Inc VERI 1.750 34.500 11/15/2026
WeWork Cos Inc WEWORK 7.875 10.703 5/1/2025
WeWork Cos Inc WEWORK 7.875 10.669 5/1/2025
WeWork Cos LLC /
WW Co-Obligor Inc WEWORK 5.000 40.500 7/10/2025
WeWork Cos LLC /
WW Co-Obligor Inc WEWORK 5.000 40.250 7/10/2025
Wells Fargo & Co WFC 5.000 99.820 8/30/2023
Wesco Aircraft Holdings WAIR 9.000 9.500 11/15/2026
Wesco Aircraft Holdings WAIR 13.125 7.750 11/15/2027
Wesco Aircraft Holdings WAIR 8.500 4.000 11/15/2024
Wesco Aircraft Holdings WAIR 13.125 4.762 11/15/2027
Wesco Aircraft Holdings WAIR 9.000 10.393 11/15/2026
Wesco Aircraft Holdings WAIR 8.500 4.986 11/15/2024
Western Global Airlines WGALLC 10.375 0.625 8/15/2025
Western Global Airlines WGALLC 10.375 14.750 8/15/2025
Zions Bancorp NA ZION 7.200 93.174 N/A
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
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Each Tuesday edition of the TCR contains a list of companies with
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than a balance sheet solvency test.
On Thursdays, the TCR delivers a list of recently filed
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liabilities delivered to nation's bankruptcy courts. The list
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Monthly Operating Reports are summarized in every Saturday edition
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The Sunday TCR delivers securitization rating news from the week
then-ending.
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*********
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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Pennsylvania, USA, and Beard Group, Inc., Philadelphia, Pa., USA.
Randy Antoni, Jhonas Dampog, Marites Claro, Joy Agravante,
Rousel Elaine Tumanda, Joel Anthony G. Lopez, Psyche A. Castillon,
Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and
Peter A. Chapman, Editors.
Copyright 2023. All rights reserved. ISSN: 1520-9474.
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*** End of Transmission ***