/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/230908.mbx T R O U B L E D C O M P A N Y R E P O R T E R Friday, September 8, 2023, Vol. 27, No. 250 Headlines 200 TRIBECA: Seeks to Sell Assets by Public Auction 26 BOWERY: Seeks to Extend Plan Exclusivity to October 2 ABERDEEN ENTERPRISES: Seeks to Sell Real Properties at Auction ADJ PROPERTIES: Files 3rd Amended Plan After Buyer Backs Out AEARO TECHNOLOGIES: 3M's $6-Bil. Accord at Risk If Veterans Balk AEROFARMS INC: Files Plan Based on Sale to AF NewCo AEROFARMS INC: Seeks Approval of Combined Plan & Disclosures AGWAY FARM: Unsecureds Owed $46M to Get 6%-14% in Plan AKJS CORP: Case Summary & Seven Unsecured Creditors ALECTO HEALTHCARE: Creditors Committee Appointment Denied ALL AMERICA TRADING: Court OKs Cash Collateral Access Thru Sept 26 ANNIVERSARY MINING: Case Summary & Nine Unsecured Creditors ARTISTS IN MOTION: Brian Hofmeister Named Subchapter V Trustee ASMARA MLK: Secured Creditor Says Disclosures Inadequate BISCAYNE BEACH: Bid to Use Cash Collateral Denied as Moot BLITZ NV: Case Summary & Three Unsecured Creditors C.W. KELLER: Seeks to Sell Assets to CWK Associates for $2.1MM CAPROCK LAND: Court OKs Interim Cash Collateral Access CENERGY LLC: Seeks Cash Collateral Access CENTERPOINT PRODUCTIONS: Court OKs Cash Collateral Access CHESTER CHARTER: S&P Affirms 'BB+' Rating on 2016A Revenue Bonds CHICAGOLAND GUNS: Ken Novak Named Subchapter V Trustee CHICK LUMBER: Court OKs Cash Collateral Access Thru Dec 31 CHIPLEY'S FAMILY: Court OKs Cash Collateral Access on Final Basis COMPLIANCE TESTING: Case Summary & 17 Unsecured Creditors CONVERGEONE HOLDINGS: S&P Downgrades ICR to 'CCC+', Outlook Stable CORNER OYSTER: Court OKs Cash Collateral Access on Final Basis CROWN N STUY: Voluntary Chapter 11 Case Summary CUSTOM LOGGING: Files Emergency Bid to Use Cash Collateral DIOCESE OF ALBANY: Deadline to File Proofs of Claim Set for Nov. 1 DIVERSIFIED HEALTHCARE: S&P Downgrades ICR to 'CCC-', Outlook Neg. EL MILAGRO DE DIOS: Voluntary Chapter 11 Case Summary ENCORE CAPITAL: Moody's Affirms 'Ba1' CFR, Outlook Remains Stable EVENT PROMOTION: Court OKs Interim Cash Collateral Access EVENTIDE CREDIT: Case Summary & 13 Unsecured Creditors FREE SPEECH: Wants $1.5 Million New Salary for Alex Jones FTX GROUP: Bankman-Fried May Call Experts to Testify at Fraud Trial FTX GROUP: Experiences Cybersecurity Breach Amid Chapter 11 FTX GROUP: Former FEC Chairman, London Attorney Can't Testify FUJI JAPANESE: Court OKs Interim Cash Collateral Access GENESIS GLOBAL: Seeks to Extend Plan Exclusivity to October 2 GIP PILOT: S&P Assigns 'BB-' Issuer Credit Rating, Outlook Stable GIRARDI & KEESE: Designer Sues Erika for Shifty AmEx Usage HAWKEYE ENTERPRISES: Court OKs Cash Collateral Access Thru Sept 27 HMONG EDUCATION: S&P Affirms 'BB+' Rating on Lease Revenue Bonds HOLIDAY HAM: Wins Interim Cash Collateral Access IBT LOCAL 863: Gets $334M Funding from PBGC to Avert Insolvency INSTANT BRANDS: Executive Bonuses Approved by Court IRIDIUM SATELLITE: S&P Rates New Credit Facilities 'BB' ITTELLA INTERNATIONAL: Sept. 19 Auction Set JAMAICAN SPOT: Files Emergency Bid to Use Cash Collateral JEWEL STONE: Case Summary & Nine Unsecured Creditors LAKEPORT CF: Seeks to Sell Elbert Property for $325,000 LECLAIRRYAN PLLC: Trimmed Founder Deal for Court Approval LIPOSOME FORMULATIONS: Taps Michael Jay Berger as Legal Counsel MACHINE TOOL: Court OKs Cash Collateral Access Thru Sept 21 MACHINE TOOL: Judy Wolf Weiker Named Subchapter V Trustee MAD SCIENCE: Case Summary & 20 Largest Unsecured Creditors MALLINCKRODT PLC: Revised Deal Is Best Option, Says Trust MINERVA RESOURCES: Court Confirms Plan MINSHEW BROTHERS: Taps Michael Jay Berger as Legal Counsel MISS UNIVERSE: Allays Concerns Over Liquidity, Bond Payments MISS UNIVERSE: Partially Pay Bond Interest and Principal Due Sept 1 MISS UNIVERSE: Shares Plunge as Debt Holders Demand Payment MITCHELL GOLD: Case Summary & 30 Largest Unsecured Creditors MONICATTI AUTO: Deborah Fish Named Subchapter V Trustee MY TRUE MILES: Operating Revenues to Fund Plan Payments MYLIFE.COM INC: Seeks to Extend Plan Exclusivity to March 1 NABORS GARAGE: Seeks Cash Collateral Access NATIONAL SERVICE: Chapter 7 Trustee to Settle With Chubb Insurers NEOSHO CONCRETE: Unsecureds to Split $300K via Quarterly Payments NEW MEDICAL: Hires Gloria Justiniano Irizarry as Counsel NUTRITION53 INC: Hires Archer APLC as Bankruptcy Counsel OFF LEASE ONLY: Case Summary & 20 Largest Unsecured Creditors OFFICE PROPERTIES: S&P Downgrades ICR to 'BB-', Outlook Negative ORBITAL INFRASTRUCTURE: U.S. Trustee Appoints Creditors' Committee PARTY CITY: Texas Bankruptcy Court Approves Reorganization Plan PERMIAN RESOURCES: S&P Rates New Senior Unsecured Notes 'BB-' PRAIRIE ACQUIROR: S&P Assigns 'B+' ICR, Outlook Stable PUERTO RICO: Bankruptcy Plan Faces Opposition from Creditors RELIABLE FORECLOSURE: Voluntary Chapter 11 Case Summary RIALTO BIOENERGY: May Use $290,271 of Cash Collateral ROLL: BICYCLE: Court OKs Cash Collateral Access RWDY INC: Exclusivity Period Extended to October 17 SACKS WESTON: Firm Files Chapter 11 Amid Fraud Scandal SALEM MEDIA: S&P Downgrades ICR to 'CCC-', Outlook Negative SAN MARINO CAFE: Case Summary & 20 Largest Unsecured Creditors SPITFIRE ENERGY: Files Emergency Bid to Use Cash Collateral ST JOHNS RESIDENCE: Voluntary Chapter 11 Case Summary STAR PARENT: S&P Assigns 'B' Issuer Credit Rating, Outlook Pos. SUNLAND MEDICAL: DIP Loan from Principal Street & Aberdeen OK'd SUNLAND MEDICAL: Trinity Regional Enters Chapter 11 Bankruptcy SUPERTRANSPORT LLC: Case Summary & 20 Largest Unsecured Creditors TV AZTECA: Will Negotiate With Bondholders After Scolded by Judge UNITED ENGINEERS: Wins Cash Collateral Access Thru Sept 30 VESTTOO LTD: Cannot Pay Compensation to Fired Employees VISHAY INTERTECHNOLOGY: S&P Rates New Sr. Convertible Notes 'BB+' VOYAGER AVIATION: Wins Interim Cash Collateral Access WATAUGA FAMILY: Wins Interim Cash Collateral Access WAYFORTH LLC: Seeks Cash Collateral Access WESTPACK HOLDINGS: Seeks Cash Collateral Access WEWORK INC: Hires Restructuring Advisers to Prevent Bankruptcy [*] David Curtiss Joins Schulte Roth's Securities Group in N.Y. [*] Eisner Advisory Group Names 21 New Partners [*] Jacobs PC Law Firm Names Three New Partners [*] Joshua M. Altman Joins Katten's Insolvency Team in Chicago [^] BOOK REVIEW: The Story of The Bank of America ********* 200 TRIBECA: Seeks to Sell Assets by Public Auction --------------------------------------------------- 200 Tribeca Restaurant, LLC filed a motion with the U.S. Bankruptcy Court for the Southern District of New York seeking approval to sell all of its assets by public auction. The assets up for sale include restaurant equipment, furniture, trade fixtures and other assets, which the company used to operate its business in New York. The assets will be sold "free and clear" of all liens, claims, encumbrances, and interests. Michael Amodeo & Co., Inc. has been tapped to conduct the auction. 200 Tribeca Restaurant intends to seek confirmation of a Chapter 11 plan of liquidation after the sale process is completed to distribute the remaining sale proceeds after satisfaction of its secured debt, according to its attorney, Ralph Preite, Esq., at Koutsoudakis Iakovou Law Group, PLLC. The Debtor has ceased operations, but its FF&E machinery and equipment occupy the premises, and ostensibly use and occupancy will accrue against the estate in favor of the landlord if left as is. The Debtor seeks to remove its FF&E expeditiously at this juncture by way of an auction sale, and in that regard has struck a deal with the landlord which limits the landlord's administrative claim for the Debtor's occupancy. The agreement to limit administrative claims is predicated upon the auction sale being conducted and all assets being removed on or before Oct. 6. In the event the auction sale continues past that time, the Landlord has reserved the right to seek additional compensation for use and occupancy of the Premises. The landlord, 200 Church Street Associates LLC, is represented by Leslie Ann Berkoff, Esq. -- lberkoff@moritthock.com -- at Moritt Hock & Hamroff LLP. A court hearing on the sale motion is scheduled for Sept. 14. The deadline for filing objections is Sept. 13. About 200 Tribeca Restaurant 200 Tribeca Restaurant, LLC is a New York-based company, which operates in the restaurant industry. 200 Tribeca Restaurant filed Chapter 11 petition (Bankr. S.D. New York Case No. 23-11228) on July 31, 2023, with $100,001 to $500,000 in assets and $1 million to $10 million in liabilities. Judge David S. Jones oversees the case. Ralph Preite, Esq., at Koutsoudakis Iakovou Law Group, PLLC is the Debtor's bankruptcy counsel. 26 BOWERY: Seeks to Extend Plan Exclusivity to October 2 -------------------------------------------------------- 26 Bowery LLC and 2 Bowery Holding, LLC ask the U.S. Bankruptcy Court for the Southern District of New York to extend the time within which they have the exclusive right to file a plan of reorganization and to solicit acceptances thereto to October 2, 2023 and November 30, 2023, respectively. 26 Bowery is the owner of the real property and improvements located at 26 Bowery, New York, New York. 2 Bowery is the owner of the real property and improvements located at 2 Bowery, New York, New York. The properties are mixed-use properties in Manhattan's Chinatown neighborhood. The Debtors explained that since the filing of their last exclusivity motion, they have continued their attempts to rehabilitate the properties by seeking cooperation from the properties' occupants, whether through consensual resolutions of their occupancy or through the continued threat of sanctions. The Debtors stated that they have recovered one of the apartments but were compelled to move for additional contempt sanctions against the occuupants resulting in entry of judgment against some of the occupants. The Debtors further stated that they have also commenced litigation against the occupants for among other things, ejectment because of an expired lease and failure to vacate and avoid the "leases" held by the occupants. The Debtors explained that they require the extension of their exclusive periods to continue the litigations against the occupants. The Debtors manifested that, given the delays caused by the occupants, they now believe that their cases have the necessary momentum to move toward a sale of the properties and eventual confirmation of a plan of reorganization. Unless extended, the exclusive filing period and exclusive solicitation period expire on August 3, 2023 and October 4, 2023, respectively. This is the Debtors' final request for an extension. 26 Bowery LLC and 2 Bowery Holding, LLC are represented by: Fred B. Ringel, Esq. Clement Yee, Esq. LEECH TISHMAN ROBINSON BROG PLLC 875 Third Avenue, 9th Floor New York, NY 10022 Tel: (212) 603-6301 About 26 Bowery 26 Bowery, LLC is the owner of the real property and improvements located at 26 Bowery, N.Y. The property is a mixed-use commercial property located in Manhattan's Chinatown neighborhood. 26 Bowery and its affiliate, 2 Bowery Holding, LLC, filed their voluntary petitions for Chapter 11 protection (Bankr. S.D.N.Y. Case Nos. 22-10412 and 22-10413) on March 31, 2022. Both reported as much as $10 million in both assets and liabilities at the time of the filing. Judge Martin Glenn oversees the cases. A. Mitchell Greene, Esq., at Leech Tishman Robinson Brog PLLC serves as the Debtors' legal counsel. ABERDEEN ENTERPRISES: Seeks to Sell Real Properties at Auction -------------------------------------------------------------- Aberdeen Enterprises, Inc. and Brickchurch Enterprises, Inc. asked the U.S. Bankruptcy Court for the Eastern District of New York to approve the sale of their real properties to the buyer who will be selected as the winning bidder at an auction. The properties up for sale comprise a four-acre estate compound with 400 feet of bulkhead beach front on the Atlantic Ocean. The properties are located at 366 Gin Lane and 376 Gin Lane, in Southampton, N.Y. The 376 Gin Lane property has been appraised at $73 million while the other property has been appraised at $63 million. The companies intend to begin marketing the properties for sale immediately upon approval of the bidding process. Under the bidding process, interested buyers may bid on either both or individual properties at the auction. A qualified bid should provide for a purchase price; should demonstrate evidence of the buyer's ability to conclude the transaction; should provide a certified check made payable to the seller of each property it is bidding on in the sum of 10% of the proposed purchase price as a down payment. At this time, the companies do not have a stalking horse offer. The companies intend to sell the properties together or separately at auction without a stalking horse offer; or designate on a later date a stalking horse purchaser, subject to court approval, in advance of the auction. The companies propose to conduct the auction on Oct. 19 or another date set by order of the bankruptcy court. About Aberdeen Enterprises and Brickchurch Enterprises Brickchurch Enterprises, Inc. filed a petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No. 22-70914) on April 30, 2022, with $50 million to $100 million in both assets and liabilities. On Aug. 2, 2023, Aberdeen Enterprises, Inc. filed Chapter 11 petition (Bankr. E.D.N.Y. Case No. 23-72834), with $50 million to $100 million in both assets and liabilities. The cases are jointly administered under Case No. 23-72834. Judge Alan S. Trust oversees the cases. Kevin J. Nash, Esq., at Goldberg Weprin Finkel Goldstein, LLP and Camisha L. Simmons, Esq. at Simmons Legal, PLLC serve as attorneys for Aberdeen and Brickchurch, respectively. ADJ PROPERTIES: Files 3rd Amended Plan After Buyer Backs Out ------------------------------------------------------------ ADJ Properties, LLC, and ALJ Properties, LLC submitted a Third Amended Combined Plan of Reorganization and Disclosure Statement. On June 9, 2023, the Court entered an Order Granting Preliminary Approval of Debtors' Disclosure. Debtors served their Second Amended Combined Liquidating Plan and Disclosure Statement on June 9, 2023. The Second Amended Plan provided for liquidation of the Debtors' assets along with the operations and operating assets of its affiliate, Vintage Food Services, Inc. ("Vintage"). The Second Amended Plan was based on a letter of intent dated May 10, 2023 (the "LOI"), to purchase the Debtors' real estate, the operations and operating assets of Vintage for a total purchase price of $3,500,000.00. The Debtors prepared the Second Amended Plan based on the LOI and the ongoing discussions with the purchaser. After the Second Amended Plan had been served and prior to finalizing a definitive Purchase Agreement, the purchaser altered the terms of the sale, substantially reducing the purchase price. The reduced purchase price was insufficient to satisfy the Debtors' secured creditors. The Debtors continued to market the real estate in order to find a buyer at a higher price or an investor able to provide funding to assist the Debtors in a successful reorganization. Although an offer was received from an investor seemingly willing to contribute significant capital to the Debtors and Vintage and to guarantee the Huntington obligations, the investor withdrew his offer one week prior to the filing deadline for this Third Amended Plan. Consequently, the Plan proposes to fund the Debtors' reorganization through the rent received from Vintage and a personal loan to Debtors' sole member, Anthony Jekielek ("Jekielek"), which will be provided to the Debtors as a capital contribution. Under the Plan, Class V consists of the allowed General Unsecured Claims of Creditors of the Debtors, other than claims of the Insider, including trade creditors. The Class V claims of the general trade creditors total approximately $2,119.49. The Debtors do not anticipate any distribution to Class V creditors. Class V is impaired. Attorneys for the Debtors: Lynn M. Brimer, Esq. Pamela S. Ritter, Esq. STROBL PLLC 33 Bloomfield Hills Parkway, Suite 125 Bloomfield Hills, MI 48304-2376 Telephone: (248) 540-2300 Facsimile: (248) 645-2690 E-Mail: lbrimer@strobllaw.com pritter@strobllaw.com A copy of the Third Amended Combined Plan of Reorganization and Disclosure Statement dated August 25, 2023, is available at https://tinyurl.ph/XgXwN from PacerMonitor.com. About ADJ Properties ADJ Properties LLC and ALJ Properties, LLC, are each a Single Asset Real Estate (as defined in 11 U.S.C. Sec. 101(51B)). ADJ Properties LLC and ALJ Properties, LLC filed for relief under Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. E.D. Mich. Case No. 22-48074 and 22-48075) on Oct. 17, 2022. In the petition filed by Anthony Jekielek, as member, ADJ reported assets and liabilities between $1 million and $10 million. The Debtors are represented by attorneys at Strobl Sharp PLLC. AEARO TECHNOLOGIES: 3M's $6-Bil. Accord at Risk If Veterans Balk ---------------------------------------------------------------- Jef Feeley and Ryan Beene of Bloomberg News report that 3M Co.'s $6 billion settlement of lawsuits accusing the company of selling defective combat earplugs to the US military could fall apart if enough veterans reject the deal as inadequate for their injuries. Given 250,000 or so active claims of hearing loss 3M has identified, the accord works out to about $24,000 a head, and would be even less after court costs and legal fees. That may not be enough to make up for the life-altering injuries service members say they suffered after the earplugs failed to protect them from the roar of heavy artillery and tanks. About Aearo Technologies Aearo Technologies -- https://earglobal.com/en -- is a 3M company that designs, manufactures, and sells personal protection equipment. The Company offers prescription and non-prescription safety eye wear, face shields, hard hats, and respirators. Aearo serves customers worldwide. To address claims related to the Combat Arms Earplugs Version 2, Aearo Technologies LLC and its affiliates sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Ind. Lead Case No. 22-02890) on July 26, 2022. In the petition filed by John R. Castellano, as authorized signatory, Aearo Technologies estimated assets and liabilities between $1 billion and $10 billion each. 3M is not a debtor in the Chapter 11 cases. 3M has committed $1 billion to fund a trust allocated for Combat Arms claims. Kirkland & Ellis LLP is serving as legal counsel and AlixPartners LLP is serving as restructuring advisor to Aearo Technologies. Ice Miller LLP, is serving as bankruptcy co-counsel to the Debtors. Kroll is the claims agent. PJT Partners is serving as financial advisor and White & Case LLP is serving as legal counsel to 3M. AEROFARMS INC: Files Plan Based on Sale to AF NewCo --------------------------------------------------- AeroFarms, Inc, et al., submitted a Combined Disclosure Statement and Joint Chapter 11 Plan. The Debtors have faced diminishing liquidity since the failed de-SPAC transaction in 2021 and, on May 31, 2023, the Board appointed a Special Committee to initiate negotiations with the DIP Lenders to provide post-petition financing. As a result of the diminished liquidity, the Company was forced to file these Chapter 11 Cases. As part of launching these Chapter 11 Cases, the Debtors requested and obtained Bankruptcy Court approval of the proposed Bidding Procedures Motions and the Stalking Horse Designation Supplement. On July 20, 2023, the Bankruptcy Court entered the Bidding Procedures Order setting the following key dates related to the Sale process: * August 16, 2022 as the bid deadline. * August 17, 2023 as the date for an auction, if necessary. * August 23, 2023 as the sale hearing . * No later than September 6, 2023 as the target closing date. The Bidding Procedures Order also designated AF NewCo, Inc. as the stalking horse bidder (the "Stalking Horse Bidder" or "AF NewCo"). AF NewCo's ownership includes certain of the DIP Lenders, many of which are Insiders. During the Chapter 11 Cases, the Debtors, their management team, and their advisors continued to work tirelessly to market the Debtors' business with the goal of identifying the optimal buyer or financial partner as part of the Chapter 11 process. The Debtors' advisors actively reached out to over 125 new potential buyers. During the post-petition period, the Debtors, in coordination with Cloudpoint, identified and connected with a total of 182 potential buyers. Cloudpoint also established a data room for all prospective buyers to view that provided significant diligence and information on the Company. Over twenty-four parties executed an NDA in connection with viewing the data room and engaging in fruitful discussions to potentially execute an alternative transaction. Moreover, the Debtors, DLA Piper, and Cloudpoint spent significant time negotiating the Stalking Horse Bidder's Asset Purchase Agreement, which ultimately enabled the Debtors to establish a floor for the value of its assets for potential Qualified Bids, which the Debtors did not receive. On August 16, 2023, in accordance with the Sale Motion and the Bidding Procedures Order, the Debtors canceled the Auction and named AF Newco as the Successful Bidder, as set forth in the notice filed that same day. Additionally, the Debtors received a bid to purchase assets collectively referred to as the Community Farm Business, which are unrelated to the assets being sold to AF NewCo, which the Debtors seek to maximize the value for through an informal supplemental process. Lastly, the Debtors intend to hold asset sales for remaining, de minimis assets that were not sold to AF NewCo and are not a part of the Community Farm Business, in accordance with the procedures set forth in the Order (I) Authorizing and Approving Procedures for the Sale, Transfer, or Abandonment of De Minimis Assets Free and Clear of Liens, Claims, Interests, and Encumbrances without Further Order of Court, and (II) Granting Related Relief. The Debtors estimate that the Stalking Horse Bidder going-concern transaction generates a total estimated value of nearly $53 million, inclusive of $500,000 of cash, offers to most, if not all, of the Debtors' employees, the proposed assumption of more than 150 contracts and up to more than $81 million of liabilities, including the assumption of the Prepetition Secured Parties' liens, among other things. The AF NewCo transaction was proposed and entered into by the Stalking Horse Bidder and the Debtors in good faith, after arms'-length negotiations, and without collusion. The Stalking Horse Bidder transaction constitutes the highest or otherwise best offer for the assets, and the Debtors' determination, in consultation with the consultation parties, that the transactions contemplated under the Purchase Agreement constitute the highest or otherwise best offer for the Debtors' assets based on a review of the components of the bid as compared to the next highest bid and discussion of those factors with both the consultation parties and the Special Committee of the Debtors' Board and based on advice the Board received from its professional advisors: Cloudpoint and DLA Piper LLP (US). On August 23, 2023, the Bankruptcy Court presided over a Sale Hearing, at the conclusion of which it approved the Sale Transaction and entered the Sale Order. A copy of the Purchase Agreement is attached to the Sale Order. On September 1, 2023—i.e., the Closing Date, effective at 11:59 pm on August 31, 2023— the Debtors and the Purchaser consummated the Sale Transaction. Pursuant to, and subject to the terms of, the Sale Order, on the Closing Date, the Debtors sold the Assets to AF NewCo, assuming the Prepetition Secured Parties' liens. The Plan provides for the best possible means to conclude these Chapter 11 Cases and make Distributions to creditors. The Debtors' president and chief financial officer, Mr. Guy Blanchard, agreed to support the Debtors' wind-down efforts through and including the Effective Date, subject to confirmation and consummation of this Plan. Each of the directors serving on the Debtors' boards of directors have likewise agreed to support the Debtors' wind-down efforts through and including the Effective Date, subject to confirmation and consummation of this Plan. Separate and apart from these directors and officers, the Debtors have no other employees or personnel to administer their wind-down efforts as of the Closing Date. Under the Plan, Class 9 General Unsecured Claims are impaired. Each Holder of an Allowed General Unsecured Claim shall receive, (i) Cash in an amount equal to its Pro Rata share among all Holders of General Unsecured Claims of the Distribution Fund, not to exceed the amount of such Allowed General Unsecured Claim; and (ii) if the Holder votes to accept the Plan, the Holder shall be deemed a Released Party for all purposes hereunder. "Distribution Fund" shall mean the Cash created from the Sale Transaction plus any other sale proceeds of excluded assets, plus any litigation proceeds, less amounts reserved for Administrative Claims. "Released Parties" shall mean collectively, and in each case in its capacity as such: (a) the Committee and each of its members; (b) all Holders of Claims or Interests that (i) vote to accept the Plan, or (ii) abstain from voting on the Plan and do not affirmatively opt out of the releases provided under, or object to the Plan; (c) the Prepetition Secured Parties; (d) the DIP Lenders; (e) DVC and (f) with respect to each of the Debtors, the Liquidation Trust, and each of the foregoing Entities in clauses (a) through (e), the Related Parties of such Entities; provided, that any Holder of a Claim or Interest that opts out of the releases or objects to the Plan shall not be a "Released Party." David Rosenberg is not a Released Party. The Liquidation Trust will fund distributions under the Plan with Cash held on the Effective Date by or for the benefit of the Debtors or the Liquidation Trust, including the remaining Sale Transaction Cash proceeds due and payable under the Purchase Agreement and Sale Order after the Closing Date, the proceeds of any non-Cash assets held by the Liquidation Trust, the Wind-Down Budget, the elimination of certain 2022 Noteholder liabilities, and the assumption of liabilities by the Purchaser under the Purchase Agreement and Sale Order. The Debtors have also offered to grant certain releases to Holders of Claims that vote to accept or do not opt out of the Releases contained in, or object to, the Plan. Notwithstanding anything to contrary herein, on the Effective Date, the Retained Actions, and any Cause of Action not settled, released, enjoined, or exculpated under Article VIII hereof on or prior to the Effective Date shall vest in the Liquidation Trust and shall be subject to administration by the Liquidation Trustee. Counsel for the Debtors: Stuart M. Brown, Esq. Kaitlin MacKenzie, Esq. DLA PIPER LLP (US) 1201 N. Market Street, Suite 2100 Wilmington, DE 19801 Telephone: (302) 468-5700 Facsimile: (302) 394-2341 E-mail: stuart.brown@us.dlapiper.com kaitlin.mackenzie@us.dlapiper.com - and - Richard A. Chesley, Esq. Robert Moskalewicz, Esq. 444 West Lake Street, Suite 900 Chicago, IL 60606 Telephone: (312) 368-4000 Facsimile: (312) 236-7516 E-mail: richard.chesley@us.dlapiper.com robert.moskalewicz@us.dlapiper.com Counsel to the Official Committee of Unsecured Creditors: Howard A. Cohen, Esq. Stephanie J. Slater, Esq. FOX ROTHSCHILD LLP 919 North Market Street, Suite 300 Wilmington, DE 19899-2323 Telephone: (302) 654-7444 Facsimile: (302) 656-8920 E-mail: hcohen@foxrothschild.com sslater@foxrothschild.com - and - Michael A. Sweet, Esq. 345 California Street, Suite 2200 San Francisco, CA 94104 Telephone: (415) 364-5540 Facsimile: (415) 391-4436 E-mail: msweet@foxrothschild.com - and - Gordon E. Gouveia, Esq. 321 North Clark Street, Suite 1600 Chicago, IL 60654 Telephone: (312) 980-3816 Facsimile: (312) 517-9201 E-mail: ggouveia@foxrothschild.com A copy of the Combined Disclosure Statement and Joint Chapter 11 Plan dated August 25, 2023, is available at https://tinyurl.ph/YmPBr from PacerMonitor.com. About AeroFarms Inc. AeroFarms, Inc. is engaged in large-scale commercial indoor vertical farming, using proprietary aeroponic technology to grow differentiated leafy greens products while using up to 95 percent less water and zero pesticides. AeroFarms operates two commercial farms, which are located in Danville, Virginia and Newark, New Jersey, where they also have their Company headquarters. AeroFarms and affiliates sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 23-10737) on June 8, 2023. In the petition signed by Guy Blanchard, president and CEO, the Debtor disclosed up to $500 million in assets and up to $100 million in liabilities. Judge Mary F. Walrath oversees the case. The Debtors tapped DLA Piper LLP (US) as general bankruptcy counsel, CloudPoint Capital LLC as investment banker, ICR, LLC as communications and consulting services provider, Omni Agent Solutions as notice and claims agent. The U.S. Trustee for Region 3 appointed an official committee to represent unsecured creditors in the Debtors' Chapter 11 cases. Fox Rothschild, LLP and Dundon Advisers, LLC serve as the committee's legal counsel and financial advisor, respectively. AEROFARMS INC: Seeks Approval of Combined Plan & Disclosures ------------------------------------------------------------ AeroFarms, Inc., et al., submitted a motion of debtors for entry of an order approving the combined disclosure statement and plan on an interim basis for solicitation purposes only and granting related relief. Pursuant to Local Rule 3017-2, the Combined Disclosure Statement and Plan contains the Debtors' disclosure statement pursuant to section 1125 of the Bankruptcy Code and each Debtor's proposed chapter 11 Plan. The Debtors intend to proceed under Local Rule 3017-2 for the following reasons: a. The proposed plan is a liquidating plan in which all or substantially all of the assets of the debtors will be liquidated pursuant to a sale under 11 U.S.C. s 363.3 b. the Combined Disclosure Statement and Plan complies with Section 1129(a)(9) of the Bankruptcy Code; c. the Combined Disclosure Statement and Plan does not seek nonconsensual releases from individual creditors of claims they may hold against non-Debtor parties; and d. the Debtors' combined assets to be distributed to holders of Allowed General Unsecured Claims pursuant to the Combined Disclosure Statement and Plan are estimated, in good faith, to be less than $2 million. The Debtors' proposed confirmation schedule is set forth below: * Entry of Interim Approval and Procedures Order is [21 days from the filing of the Motion] * Solicitation Launch [5 days following entry of the Interim Approval and Procedures Order]. * Plan Supplement [7 days prior to the confirmation hearing]. * Voting / Objection Deadline [30 days following entry of an interim order]. * Combined Hearing [35 days from service of the Combined Disclosure Statement and Plan]. Counsel for the Debtors: Stuart M. Brown, Esq. Kaitlin MacKenzie, Esq. DLA PIPER LLP 1201 N. Market Street, Suite 2100 Wilmington, DE 19801 Telephone: (302) 468-5700 Facsimile: (302) 394-2341 E-mail: stuart.brown@us.dlapiper.com kaitlin.mackenzie@us.dlapiper.com - and - Richard A. Chesley, Esq. 444 West Lake Street, Suite 900 Chicago, IL 60606 Telephone: (312) 368-4000 Facsimile: (312) 236-7516 E-mail: richard.chesley@us.dlapiper.com About AeroFarms Inc. AeroFarms, Inc. is engaged in large-scale commercial indoor vertical farming, using proprietary aeroponic technology to grow differentiated leafy greens products while using up to 95 percent less water and zero pesticides. AeroFarms operates two commercial farms, which are located in Danville, Virginia and Newark, New Jersey, where they also have their Company headquarters. AeroFarms and affiliates sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 23-10737) on June 8, 2023. In the petition signed by Guy Blanchard, president and CEO, the Debtor disclosed up to $500 million in assets and up to $100 million in liabilities. Judge Mary F. Walrath oversees the case. The Debtors tapped DLA Piper LLP (US) as general bankruptcy counsel, CloudPoint Capital LLC as investment banker, ICR, LLC as communications and consulting services provider, Omni Agent Solutions as notice and claims agent. The U.S. Trustee for Region 3 appointed an official committee to represent unsecured creditors in the Debtors' Chapter 11 cases. Fox Rothschild, LLP and Dundon Advisers, LLC serve as the committee's legal counsel and financial advisor, respectively. AGWAY FARM: Unsecureds Owed $46M to Get 6%-14% in Plan ------------------------------------------------------ Agway Farm & Home Supply, LLC submitted a Combined Disclosure Statement and Joint Plan of Liquidation. The Plan provides for a Plan Administrator to liquidate, collect, sell, or otherwise dispose of the remaining assets of the Debtor's bankruptcy estate (the "Estate") (including, without limitation, certain causes of action), if and to the extent such assets were not previously monetized to Cash or otherwise transferred or disposed of by the Debtor prior to the Effective Date, and then to distribute all net proceeds to creditors generally in accordance with the priority scheme under the Bankruptcy Code, subject to the terms of the Plan. In a Chapter 7 proceeding, absent such consent, the recovery of general unsecured creditors would be diminished. Under the Plan, Class 3 Unsecured Claims, estimated amount $46 million but expected to be reduced after objections to certain Class 3 Claims. Each Holder of an Allowed Unsecured Claim in Class 3 shall receive a Pro Rata share of Available Cash after the payment of Professional Fee Claims, Administrative Claims, Priority Tax Claims, Priority Non-Tax Claims, Other Secured Claims, and expenses related to the wind-down of the Debtor, as determined by the Plan Administrator. Creditors will recover 6% to 14% of their claims. Class 3 is impaired. Available Cash shall be used to fund distributions to Creditors (including holders of Allowed Administrative Claims, Priority Tax Claims, Priority Non-Tax Claims, Other Secured Claims and Unsecured Claims) or other payments to be made pursuant to or otherwise consistent with the Plan. On the Effective Date, the Debtor expects to have approximately $6 million Cash on hand. Important Dates and Deadlines: * The Solicitation of the Plan will be completed three business days after entry of the Order approving Solicitation Motion. * The Deadline by which the Debtor must file Claims Objections for Voting Purposes (the "Voting Claims Objection Deadline") will be on September 14, 2023. * The Deadline to file Plan Supplement will be on September 28, 2023. * The Deadline for Creditors to Respond to Claims Objections or File 3018(a) Motions will be on September 28, 2023. * The Confirmation Objection Deadline will be on October 5, 2023. * The Voting Deadline will be on October 5, 2023. * The Deadline for Objections to 3018(a) Motions will be on October 12, 2023. * The Deadline to file Voting Tabulations Affidavit will be on October 12, 2023. * The Deadline to file Confirmation Brief and Proposed Form of Confirmation Order will be on October 12, 2023. * The Confirmation Hearing will be on October 19, 2023. Counsel for Debtor and Debtor in Possession: Jeffrey R. Waxman, Esq. Brya M. Keilson, Esq. MORRIS JAMES LLP 500 Delaware Avenue; Suite 1500 Wilmington, DE 19801 Telephone: (302) 888-6800 Facsimile: (302) 571-1750 E-mail: jwaxman@morrisjames.com bkeilson@morrisjames.com - and - Alan J. Friedman, Esq. Melissa Davis Lowe, Esq. SHULMAN BASTIAN FRIEDMAN & BUI LLP 100 Spectrum Center Drive; Suite 600 Irvine, CA 92618 Telephone: (949) 340-3400 Facsimile: (949) 340-3000 E-mail: afriedman@shulmanbastian.com mlowe@shulmanbastian.com Counsel to the Official Committee of Unsecured Creditors: Bradford J. Sandler, Esq. Paul J. Labov, Esq. Colin R. Robinson, Esq. PACHULSKI STANG ZIEHL & JONES LLP 919 N. Market Street, 17th Floor Wilmington, DE 19801 Telephone: (302) 652-4100 Facsimile: (302) 652-4400 E-mail: bsandler@pszjlaw.com plabov@pszjlaw.com crobinson@pszjlaw.com A copy of the Combined Disclosure Statement and Joint Plan of Liquidation dated August 25, 2023, is available at https://tinyurl.ph/XjWvM from PacerMonitor.com. About Agway Farm & Home Supply Agway Farm & Home Supply LLC -- https://www.agway.com/ -- is a one-stop shop for lawn, garden, bird, pet and farm products. It is based in Richmond, Va. Agway Farm & Home Supply sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 22-10602) on July 6, 2022, listing $10 million to $50 million in both assets and liabilities. Jay Quickel, president and chief executive officer of Agway Farm & Home Supply, signed the petition. Judge J. Kate Stickles oversees the case. The Debtor tapped Shulman Bastian Friedman & Bui, LLP as lead bankruptcy counsel; Morris James, LLP as local Delaware counsel; Wilson Elser Moskowitz Edelman & Dicker LLP as special litigation counsel; and Focus Management Group USA, Inc. as financial advisor. Stretto, Inc. is the claims and noticing agent and administrative advisor. The official committee of unsecured creditors appointed in the case selected Pachulski Stang Ziehl & Jones as legal counsel; FTI Consulting, Inc. as financial advisor; and Hilco IP Services, LLC as intellectual property marketing agent. AKJS CORP: Case Summary & Seven Unsecured Creditors --------------------------------------------------- Debtor: AKJS Corp 886 Commerce Street Thornwood, NY 10594 Business Description: AKJS owns a mixed use property rented to affiliated restaurant and two residential tenants valued at $2,935,000. Chapter 11 Petition Date: September 6, 2023 Court: United States Bankruptcy Court Southern District of New York Case No.: 23-22651 Judge: Hon. Sean H. Lane Debtor's Counsel: H Bruce Bronson, Esq. BRONSON LAW OFFICES PC 480 Mamaroneck Ave Harrison, NY 10528-1621 Tel: (914) 269-2530 Fax: (888) 908-6906 Email: hbbronson@bronsonlaw.ne Total Assets: $2,940,550 Total Liabilities: $1,129,614 The petition was signed by Tommy Stratigakis as president. A full-text copy of the petition containing, among other items, a list of the Debtor's seven unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/QX37EVY/AKJS_Corp__nysbke-23-22651__0001.0.pdf?mcid=tGE4TAMA ALECTO HEALTHCARE: Creditors Committee Appointment Denied --------------------------------------------------------- Emily Lever of Law360 reports that a Delaware bankruptcy judge denied a bid from unsecured creditors of bankrupt hospital owner Alecto Healthcare Services to form an official committee, finding Monday, August 28, 2023, that a court-appointed trustee and an independent director for Alecto could adequately investigate the creditors' allegations of fraudulent transfers. About Alecto Healthcare Services Alecto Healthcare Services, LLC is a provider of healthcare infrastructure services based in Glendale Calif. Alecto Healthcare Services filed Chapter 11 petition (Bankr. D. Del. Case No. 23-10787) on June 16, 2023, with $1 million to $10 million in assets and $50 million to $100 million in liabilities. Jami Nimeroff, Esq., at Brown McGarry Nimeroff, LLC has been appointed as Subchapter V trustee. Judge Kate Stickles oversees the case. Jeffrey R. Waxman, Esq., and Brya M. Keilson, Esq., at Morris James, LLP are the Debtor's bankruptcy attorneys. ALL AMERICA TRADING: Court OKs Cash Collateral Access Thru Sept 26 ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Middle District of Florida, Orlando Division, authorized All America Trading, LLC to use cash collateral on an interim basis through September 26, 2023. The Debtor is permitted to use cash collateral to pay: (a) amounts expressly authorized by the Court; and (b) the current and necessary expenses set forth in the budget, plus an amount not to exceed 10% for each line item. As adequate protection, the Debtor will pay $6,000, to be distributed prorata to the Secured Creditors starting on September 15, 2023, by the 15th of each month. Each creditor with a security interest in cash collateral will have a perfected post-petition lien against cash collateral to the same extent and with the same validity and priority as the prepetition lien, without the need to file or execute any document as may otherwise be required under applicable non bankruptcy law. The continued hearing on the matter is set for September 26 at 11 a.m. A copy of the order and the Debtor's budget is available at https://urlcurt.com/u?l=qQj3Pb from PacerMonitor.com. The budget provides for total operating expenses, on a monthly basis, as follows: $589,875 for September 2023; $468,525 for October 2023; $418,040 for November 2023; $432,050 for December 2023; and $366,525 for January 2023. About All America Trading All America Trading LLC is is a Florida limited liability company whose primary place of business is in Orlando, Orange County, Florida. AAT exports bananas globally. It works virtually out of the apartment of the principal of AAT, Joe Mudar, who is the 100% owner of AAT. All America Trading LLC filed a petition for relief under Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 22-02876) on August 11, 2022. In the petition filed by Mudar Y. Mahmoud, as owner, the Debtor reported assets between $500,000 and $1 million and liabilities between $500,000 and $1 million. Judge Grace E. Robson oversees the case. Aaron R. Cohen has been appointed as Subchapter V trustee. Adina L Pollan, Esq., at McGlinchey Stafford, is the Debtor's counsel. ANNIVERSARY MINING: Case Summary & Nine Unsecured Creditors ----------------------------------------------------------- Debtor: Anniversity Mining Claims, LLC 2799 Tropicana, Ste H Las Vegas, NV 89121 Chapter 11 Petition Date: September 7, 2023 Court: United States Bankruptcy Court District of Nevada Case No.: 23-13875 Debtor's Counsel: Michael J. Harker, Esq. LAW OFFICE OF MICHAEL J. HARKER 2901 El Camino Ave Suite 200 Las Vegas, NV 89102 Tel: 702-248-3000 Fax: 702-425-7290 Email: notices@harkerlawfirm.com Total Assets: $16,759,000 Total Liabilities: $2,637,837 The petition was signed by Hillcrest Projects LLC - Robert Ford, its managing member. A full-text copy of the petition is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/PFQNECI/ANNIVERSITY_MINING_CLAIMS_LLC__nvbke-23-13875__0001.0.pdf?mcid=tGE4TAMA List of Debtor's Nine Unsecured Creditors: Entity Nature of Claim Claim Amount 1. AMS Management $8,481 Attn: an officer, mang'g or ge agt, agt 3180 W Sahara Ave C20 Las Vegas, NV 89102 2. Anniversary Mines LLC $350,000 6933 Bonanza Road Las Vegas, NV 89110 3. Cash and Capital LLC Business Loan $50,897 Attn: an officer, mang'g or gen agt, agt 460 Park Ave S Fl 10 New York, NY 10016-7470 4. Dean Legal Group Legal Fees $107,193 Attn: an officer, mang'g or gen agt, agt 400 S 4th St #500 Las Vegas, NV 89101 5. Fora Financial Business Loan $22,890 1385 Broadway, 15th Floor Attn: an officer, mang'g or gen agt, agt New York, NY 10018 6. Internal Revenue Service $70,000 PO Box 7346 Philadelphia, PA 19101 7. Kaempfer Crowell Legal Fees $35,000 Attn: an officer, mang'g or gen agt, agt 1980 Festival Plaza Dr Ste 650 Las Vegas, NV 89135 8. McGinley & Associates $5,376 Attn: an officer, mang'g or gen agt, agt 1915 Green Valley Pkwy #200 Henderson, NV 89074 9. WK Financial Loan $43,000 Attn: an officer, mang'g or gen agt, agt 2036 Lincoln Ave Ste 103 Ogden, UT 84401 ARTISTS IN MOTION: Brian Hofmeister Named Subchapter V Trustee -------------------------------------------------------------- The U.S. Trustee for Regions 3 and 9 appointed Brian Hofmeister, Esq., as Subchapter V trustee for Artists in Motion Dance Studio, LLC. Mr. Hofmeister will be paid an hourly fee of $400 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Hofmeister declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Brian W. Hofmeister, Esq. 3131 Princeton Pike Building 5, Suite 110 Lawrenceville, NJ 08648 Phone: (609) 890-1500 Email: bwh@hofmeisterfirm.com About Artists in Motion Dance Studio Artists in Motion Dance Studio, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.N.J. Case No. 23-17203) on Aug. 21, 2023, with as much as $1 million in both assets and liabilities. Michele Wolf, member, signed the petition. David A. Kasen, Esq., at Kasen & Kasen, PC serves as the Debtor's counsel. ASMARA MLK: Secured Creditor Says Disclosures Inadequate -------------------------------------------------------- Secured Creditor Pacific Private Money Fund I, LLC1 ("PPM"), objects to approval of the Combined Plan of Reorganization and Disclosure Statement, filed by Asmara MLK, LLC, on the grounds that the Debtor's Disclosure Statement, as drafted, does not contain adequate information as required by 11 U.S.C. s 1125. Secured Creditor points out that the debtor's disclosure statement fails to provide adequate information to enable creditors to make an informed decision regarding the plan. * Inadequate information regarding the existence of a binding commitment from the Plan funding sources. The Disclosure Statement does not state whether the two purported sources of funding (AGBlackberrybistro, LLC and Wediberhe, LLC) to make Plan payments have entered into binding legal commitments to make the required plan payments. Copies of any applicable contracts should be attached to the Disclosure Statement and explained. * Inadequate information regarding the Plan funding sources' ability to make Plan payments and Plan feasibility. There are no financial statements, financial projections, bank statements, or other information that would allow creditors. Inadequate information regarding the Plan funding sources' ability to make Plan payments and Plan feasibility. There are no financial statements, financial projections, bank statements, or other information that would allow creditors to evaluate the ability of the proposed funding sources to make the required Plan payments. The documents attached to the Disclosure Statement that relate to AGBlackberrybistro, LLC and Wediberhe LLC appear to be a monthly budget for June 2023. Since that month has already passed, these documents do nothing to demonstrate the ability of the Debtor to make plan payments in the future. There is simply no evidence whatsoever of the financial wherewithal of these entities to make the Plan payments. If it was actually true that these companies had sufficient cash flow to make the plan payments, then the Debtor (or these entities) should obtain a new loan and use the proceeds to repay the debt owed to PPM. The statement in the Disclosure Statement that "it will take between 2 and 3 years to obtain a construction loan which will pay off all of the estate's claims" is concerning, and seems to undermine the assertion that the funding sources have sufficient means to make the Plan payments (credit-worthy borrowers can obtain a new loan in a relatively short period of time). * The Debtor's Plan is unconfirmable because there is no impaired consenting class of unsecured creditors. The only unsecured creditor identified in the Disclosure Statement is the California Franchise Tax Board, allegedly holding a claim of $412.41. Page 13 of the Disclosure Statement indicates that the Debtor has more than sufficient cash to pay this claim in full on the effective date of the Plan. Therefore, this claim is not impaired, and is not entitled to vote on the Plan. Without an impaired consenting class of unsecured creditors voting in favor of the Plan, the Plan is unconfirmable. 11 U.S.C. s 1129(a)(10). In addition, the use of a de minimis creditor to create an impaired consenting class appears to be an artifice to circumvent the purpose of section 1129(a)(10), thereby preventing the required finding that the Plan has been proposed in good faith. Attorneys for Secured Creditor Pacific Private Money Fund I, LLC: Mike Neue, Esq. GERACI LAW FIRM 90 Discovery Irvine, CA 92618 Tel: (949) 379-2600 Fax: (949) 379-2610 E-mail: m.neue@geracillp.com About Asmara MLK Asmara MLK, LLC in Oakland, CA, filed its voluntary petition for Chapter 11 protection (Bankr. N.D. Cal. Case No. 23-40430) on April 17, 2023, listing $1 million to $10 million in assets and $100,000 to $500,000 in liabilities. Asmerom Berhe Ghebrmicael, Sr., as managing member., signed the petition. Judge William J. Lafferty oversees the case. LAW OFFICE OF MARC VOISENAT serve as the Debtor's legal counsel. BISCAYNE BEACH: Bid to Use Cash Collateral Denied as Moot --------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Florida, Miami Division, denied as moot the motion to use cash collateral filed by Biscayne Beach Apartments, LLC. As previously reported by the Troubled Company Reporter, Titziano Mercante, a mortgagee from Pinecrest, Florida, asserts an interest in the Debtor's cash collateral. The Debtor has an eight unit building, of which four units are rented, one of which has moved, but another tenant will be moving in next week. The other four units are in the middle of renovation. There is a total of $7,200, a month in rental income at $1,800 each unit. The Debtor intended to deposit these funds into the Debtor's DIP account and use these funds to pay the Lender pending confirmation of the Debtor's Plan of Reorganization and Disclosure Statement as adequate protection. A copy of the order is available at https://urlcurt.com/u?l=0ZG8rP from PacerMonitor.com. About Biscayne Beach Apartments, LLC Biscayne Beach Apartments, LLC owns an eight-unit apartment building located at 834-842 84 St, Miami Beach, FL valued at $1.6 million. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 23-15904) on July 27, 2023. In the petition signed by Benjamin Shames, manager, the Debtor disclosed $1,600,621 in assets and $1,182,040 in liabilities. Judge Corali Lopez-Castro oversees the case. Michael A. Frank, Esq., at LAW OFFICES OF FRANK & DE LANA GUARDIA, represents the Debtor as legal counsel. BLITZ NV: Case Summary & Three Unsecured Creditors -------------------------------------------------- Debtor: BLITZ NV, LLC 5990 West Patrick Lane Las Vegas, NV 89118 Chapter 11 Petition Date: September 6, 2023 Court: United States Bankruptcy Court District of Nevada Case No.: 23-13871 Judge: Hon. Natalie M. Cox Debtor's Counsel: Brett A. Axelrod, Esq. FOX ROTHSCHILD LLP 1980 Festival Plaza Drive, Suite 700 Las Vegas, NV 89135 Tel: (702) 262-6899 Email: baxelrod@foxrothschild.com Total Assets as of August 31, 2023: $9,608,239 Total Liabilities as of August 31, 2023: $4,187,333 Estimated Assets: $500,000 to $1 million Estimated Liabilities: $1 million to $10 million The petition was signed by Jason Veronas as chief operating officer. A full-text copy of the petition containing, among other items, a list of the Debtor's three unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/5PVERKA/BLITZ_NV_LLC__nvbke-23-13871__0001.0.pdf?mcid=tGE4TAMA C.W. KELLER: Seeks to Sell Assets to CWK Associates for $2.1MM -------------------------------------------------------------- C.W. Keller & Associates, LLC asked the U.S. Bankruptcy Court for the District of Massachusetts to approve the sale of its assets to CWK Associates, LLC or to another buyer with a better offer. The assets up for sale include personal property such as equipment, furniture and inventory, and other assets, which the company used to operate its business. CWK will acquire the assets for $2.1 million "free and clear" of liens, claims, encumbrances and interests. It has already paid a deposit of $50,000, which is being held in escrow. The proposed sale provides for the assumption and assignment to CWK of certain agreements, leases and licenses. C.W. Keller & Associates will use the sale proceeds to cure all sums due under those assumed contracts. To get a higher and better offer, C.W. Keller & Associates intends to put the assets up for bidding. Under the bidding process, the minimum initial overbid is $105,000, to be accompanied by an earnest money deposit of $50,000. As lender, CWK is permitted to credit bid for all amounts outstanding under a bankruptcy loan it provided to C.W. Keller & Associates. Moreover, CWK is entitled to a termination fee in the event of acceptance by the seller of a rival bid. The termination fee shall equal the lesser of the actual amounts incurred by CWK in connection with the transactions before and after execution of the sale agreement; or 5% of the sale price. An auction for the assets will be held only if there is a competing bid. The bankruptcy court will conduct an auction at the time of the hearing on approval of the sale. C.W. Keller & Associates has requested the court that the sale hearing be scheduled not later than the week ending of Oct. 20, with an objection deadline set for five business days prior to the date proposed for the hearing. About C.W. Keller & Associates C.W. Keller & Associates, LLC is a fabrication and design engineering firm in Newburyport, Mass., specializing in custom millwork, composites and concrete form systems. C.W. Keller & Associates and C.W. Keller Holding Company, Inc. filed Chapter 11 petitions (Bankr. D. Mass. Lead Case No. 23-11357) on Aug. 24, 2023. At the time of the filing, C.W. Keller & Associates reported $1 million to $10 million in assets and $10 million to $50 million in liabilities while C.W. Keller Holding Company, Inc. reported as much as $50,000 in assets and $1 million to $10 million in liabilities. Judge Christopher J. Panos oversees the case. David B. Madoff, Esq., at Madoff & Khoury LLP, represents the Debtors as legal counsel. CAPROCK LAND: Court OKs Interim Cash Collateral Access ------------------------------------------------------ The U.S. Bankruptcy Court for the Northern District of Texas, Amarillo Division, authorized Caprock Land Company, LLC to use cash collateral on an interim basis in accordance with the budget. As previously reported by the Troubled Company Reporter, on October 13, 2022, the Debtor entered into an Amended and Restated Master Origination and Sale/Repurchase Agreement with StoneX Commodity Solutions, LLC, which was an update to the Original Master Purchase and Sale Agreement that had been entered into on August 31, 2018. Pursuant to the terms of the Amended PSA, the Debtor and StoneX agreed to certain terms relating to commodities trading or sales transactions -- at its most basic, the Debtor would sell and deliver to StoneX, and StoneX would purchase a certain quantity of a stored commodity at a specified price. The Debtor would deliver applicable title documents relevant to that sale to StoneX. The commodity would then be stored at an agreed upon facility in merchantable condition. As of the Petition Date, Debtor is indebted to StoneX in the approximate amount of $15 million. The the Debtor is permitted to use cash collateral in the ordinary course of its business solely to pay (i) certain actual, ordinary and necessary expenses that are due and owing and set forth in the amended budget; and (ii) any other expenses approved by the prior written consent of StoneX, in its sole discretion. As adequate protection, StoneX will be granted valid, binding, enforceable, and perfected continuing first-priority liens and security interests in and on the Debtor's one-half interest in the aircraft described as a Textron M2, No. N525KB, and the Debtor's cattle. The Replacement Lien will be a first priority lien on the Additional Collateral in all respects, except that the Replacement Lien in the aircraft will be subject to the existing third-party mortgage. The Replacement Lien will serve as adequate protection for the use of the cash collateral to the extent of any diminution of StoneX's pre-petition secured claim. All liens and security interests granted pursuant to the Interim Order are deemed attached, effective, valid, and perfected as of the Petition Date. To the extent of diminution in the value of StoneX's pre-petition secured claim, and subject to the Debtor's reservation of rights to object to the validity, priority, and extent of StoneX's pre-petition secured claim, StoneX will have a super-priority administrative expense claim pursuant to 11 U.S.C. section 507(b) in the Debtor's Chapter 11 Case and against the Debtor's bankruptcy estate. The events that constitute an "Event of Default" includes: (a) the Debtor's Chapter 11 Case is converted to a case under Chapter 7 of the Bankruptcy Code; (b) The Court grants StoneX, or any other creditor, relief from the automatic stay with respect to enforcement rights related to the Collateral; (c) The Chapter 11 Case is dismissed, except to the extent Debtor and StoneX agree to such dismissal; (d) The Court authorizes the appointment of a Chapter 11 Trustee in the Chapter 11 Case; and (e) The Interim Order is reversed, revoked, stayed, rescinded or vacated. A final hearing on the matter is set for September 28, 2023 at 10 a.m. A copy of the court's order is available at https://urlcurt.com/u?l=bnxjoX from PacerMonitor.com. About CapRock Land Company, LLC CapRock Land Company, LLC 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 U.S. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 23-20172) on August 25, 2023. In the petition signed by Thomas Bunkley, owner, the Debtor disclosed up to $10 million in assets and $50 million in liabilities. Judge Robert L. Jones oversees the case. Steven L. Hoard, Esq., at Mullin Hoard & Brown, LLP, represents the Debtor as legal counsel. StoneX Commodity Solutions LLC, as lender, is represented by Polsinelli PC. CENERGY LLC: Seeks Cash Collateral Access ----------------------------------------- Cenergy, LLC and Consumers Cooperative Association of Eau Claire ask the U.S. Bankruptcy Court for the Western District of Wisconsin for authority to use cash collateral and provide adequate protection until February 28, 2024. The Debtor requires the use of cash collateral for reasonable and necessary costs of operating the Debtors' business, providing Oakwood Bank and SBA adequate protection via continued monthly payments, payment of instalment loans and leases, and payment of professional fees and other administrative costs, all as set forth in the Budget. Oakwood Bank and the U.S. Small Business Administration assert an interest in the Debtor's cash collateral. Cenergy LLC is indebted to Oakwood Bank on a single note originally dated October 11, 2016 (renewed November 29, 2021), with a balance as of July 31, 2023 of $217,437. The annual interest rate on the note is 4.50%, with monthly payments of $5,738. The note is secured by a general business security agreement dated October 11, 2016, by which Cenergy granted Oakwood Bank a security interest in substantially all of its assets. Oakwood Bank perfected its interest in the Oakwood Collateral through its UCC-l financing statements filed with the Wisconsin Department of Financial Institutions on October 12, 2016. The value of the Oakwood Collateral is estimated for purposes of this cash collateral motion and remains subject to final determination. As of July 29, 2023, the Debtors combined had approximately $1.8 Million of inventory and $104,000 of accounts receivable. CCA is indebted to the U.S. Small Business Administration, which made an Economic Injury Disaster Loan to CCA on May 6, 2020, with a balance as of July 31, 2023 of approximately $148,000. The annual interest rate on the note is 3.75% with monthly payments of $731. The SBA note is secured by a general business security agreement dated May 6, 2020, by which CCA granted SBA a security interest in substantially all of CCA's assets, including all equipment. SBA perfected its interest in the SBA Collateral through its UCC-l financing statements filed with the Wisconsin Department of Financial Institutions on May 15, 2020. CCA owns 5 of the 31 stores operated by the Debtors, and proceeds of sales at CCA's 5 stores are deposited in a single operating account under the name of Cenergy. Thus, SBA's lien in proceeds of CCA's inventory and receivables continues in cash collateral deposited in the Cenergy account. The value of the SBA Collateral is estimated for purposes of this cash collateral motion and remains subject to final determination. As noted above, as of July 29, 2023, the Debtors combined had approximately $1.8 Million of inventory and $104,000 of accounts receivable. The Interim Order proposes use of cash collateral according to a Budget, and adequate protection to Oakwood Bank and SBA which includes replacement liens in post-petition collateral, continued monthly payments, and maintenance of insurance on all collateral. A copy of the motion is available at https://urlcurt.com/u?l=W4BqaZ from PacerMonitor.com. About Cenergy, LLC Cenergy, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Wisc. Case No. 23-11558) on September 1, 2023. In the petition signed by K. Michael Buck, authorized individual, the Debtor disclosed up to $10 million in both assets and liabilities. Judge Catherine J. Furay oversees the case. Craig E. Stevenson, Esq., at Dewitt LLP, represents the Debtor as legal counsel. CENTERPOINT PRODUCTIONS: Court OKs Cash Collateral Access --------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Texas, Dallas Division, authorized Centerpoint Productions, Inc. to use cash collateral on a final basis in accordance with the budget. As previously reported by the Troubled Company Reporter, a number of potential creditors have filed UCC-1's claiming a lien on the Debtor's accounts receivable and or inventory. According to the Secretary of State of Texas the following UCC-1's have been filed: 1. The First National Bank of tom Beam file number 14-0040174900 filed December 24, 2014 with continuation at 19-00455811 filed December 4, 2019. 2. CHTD Company file number 20-00600299836 filed on December 7, 2020. 3. Global Merchant Cash, Inc. file number 22-0054056438 filed November 4, 2022. 4. CSC file number 22-0056522923 filed November 19, 2022. 5. Highland Hill Capital, LLC filed number 23-0021015115 filed May 12, 2023 6. Merk Funding file number 23-0029987989 filed July 10, 2023. The court ruled that as adequate protection the Secured Creditors are granted replacement liens under 11 U.S.C. Section 552, to the extent of any diminishment in the value of Secured Creditors' interest in such cash collateral, in accordance with its existing existing priority. A copy of the order is available at https://urlcurt.com/u?l=Iwwzsi from PacerMonitor.com. About Centerpoint Productions, Inc. Centerpoint Productions, Inc. is a manufacturer of commercial cabinetry. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 23-31716-sgj11) on August 10, 2023. In the petition signed by David Horowitz, president, the Debtor disclosed up to $50,000 in assets and up to $10 million in liabilities. Eric A. Liepins, Esq. represents the Debtor as legal counsel. CHESTER CHARTER: S&P Affirms 'BB+' Rating on 2016A Revenue Bonds ---------------------------------------------------------------- S&P Global Ratings revised the outlook to positive from stable and affirmed its 'BB+' rating on Delaware County Industrial Development Authority, Pa.'s series 2016A (tax-exempt) revenue bonds, issued for Chester Charter Scholars Academy Charter School (CCSA or the school, formerly known as Chester Charter School for the Arts) on behalf of the CCSA Foundation (formerly known as the Chester Fund for Education and the Arts). "The positive outlook reflects our view of the school's improved operating margins, maximum annual debt service coverage, and liquidity position, which we believe are sustainable over the outlook period," said S&P Global Ratings credit analyst Jesse Brady. If the school can continue this trend of positive financial performance while maintaining both a healthy liquidity position and current demand profile, S&P could raise the rating. The rating reflects S&P's view of the school's: -- Strengthened lease-adjusted MADS coverage and healthy operational surpluses in the past two years, with similar results expected for fiscal years 2023 and 2024; -- Stable and experienced management team, sound oversight from an active board, and notable fundraising support provided by the related foundation; and -- Solid liquidity for the rating, based on just the school's cash and not including the additional cash available from the foundation (that exists solely to support the school), though we expect a modest use of cash in the near term to convert modular classrooms to permanent space. S&P said, "The positive outlook reflects our view of the school's improved operating margins, maximum annual debt service (MADS) coverage, and liquidity position, which we believe are sustainable over the outlook period. If the school can continue this trend of positive financial performance while maintaining both a healthy liquidity position and current demand profile, we could raise the rating. "We could revise the outlook to stable if operating margins and coverage fall below current levels, if the permanent classroom project uses more additional liquidity than what is currently projected, or if current enrollment levels are not sustained. In addition, if the school does not comply with its charter authorizer and state standards, we could revise the outlook to stable. "We could raise the rating if CCSA sustains the recent improvement of its operating metrics and lease-adjusted MADS coverage, while holding its demand profile and liquidity position." CHICAGOLAND GUNS: Ken Novak Named Subchapter V Trustee ------------------------------------------------------ The U.S. Trustee for Region 11 appointed Ken Novak as Subchapter V trustee for Chicagoland Guns & Range, LLC. Mr. Novak is a certified public accountant and president of Ken Novak & Associates, Inc. Mr. Novak will be paid an hourly fee of $329 for his services as Subchapter V trustee while his professional assistant will be paid an hourly fee of $169. In addition, Mr. Novak will receive reimbursement for work-related expenses incurred. In court papers, Mr. Novak declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Ken Novak, CPA Ken Novak & Associates, Inc. 3356 Lake Knoll Drive Northbrook, IL 60062 Tel: (847) 291-7718 Fax: (847) 291-7719 Email: knovak@kennovakinc.com About Chicagoland Guns Chicagoland Guns & Range, LLC filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. N.D. Ill. Case No. 23-11187) on Aug. 24, 2023, with $500,001 to $1 million in assets and $100,001 to $500,000 in liabilities. Judge Donald R. Cassling oversees the case. Karen J. Porter, Esq., at Porter Law Network represents the Debtor as bankruptcy counsel. CHICK LUMBER: Court OKs Cash Collateral Access Thru Dec 31 ---------------------------------------------------------- The U.S. Bankruptcy Court for the District of New Hampshire authorized Chick Lumber, Inc. to use cash collateral of up to $2.1 million on an interim basis in accordance with the budget, through December 31, 2023. The Debtor is directed make these adequate protection payments on the last day of each month: (i) $482 to Jeldwen, Inc.; (ii) $25 to BFG Corporation (H2H NC Paint Tinter); (iii) $38 to GreatAmerica Financial Services Corp.; (iv) $0.00 to Citizens One Auto Finance; (v) $227 to Citizens One Auto Finance; (vi) $212 to Citizens One Auto Finance; (vii) $40 to Wells Fargo Equipment Finance, Inc. - Forklift; (viii) $63 to Wells Fargo Equipment Finance, Inc. - Moffett Machine; (ix) $82.22 to Hitachi Capital Financial; and (x) $1,198 to Citizens Financial Group, Inc., as the assignee of the claim of American Express Bank, FSB. Each Record Lienholder is granted a replacement lien in, to and on the Debtor's post-petition property of the same kinds and types as the collateral in, to and on which it held or claims to have held valid and enforceable, perfected liens on the Petition Date as security for any loss or diminution in the value of the collateral held by any the Record Lienholder. A further hearing on the matter is set for September 20 at 11 a.m. A copy of the Court's order is available at https://urlcurt.com/u?l=xmH9dA from PacerMonitor.com. About Chick Lumber Chick Lumber, Inc. -- https://www.chicklumber.com/ -- is a dealer of lumber, plywood, steel beams, engineered wood, trusses, steel and asphalt roofing, windows, doors, siding, trim, stair parts, and finish materials. It also offers drafting and design, installation, delivery, outside sales, and plan reading and estimating services. The Debtor sought Chapter 11 protection (Bankr. D.N.H. Case No. 19-11252) on Sept. 9, 2019, in Concord. In the petition signed by Salvatore Massa, president, the Debtor disclosed between $1 million and $10 million in both assets and liabilities. Judge Bruce A. Harwood oversees the case. William S. Gannon PLLC is the Debtor's legal counsel. The Office of the U.S. Trustee appointed a committee of unsecured creditors on Oct. 3, 2019. The Committee is represented by Goldstein & McClintock, LLLP as its legal counsel. CHIPLEY'S FAMILY: Court OKs Cash Collateral Access on Final Basis ----------------------------------------------------------------- The U.S. Bankruptcy Court for the Middle District of Georgia authorized Chipley's Family Restaurant, LLC to use cash collateral on a final basis in accordance with the budget. The Debtor's budget will include a $1,000 per month payment to the Chapter 11 Sub V Trustee commencing on September 15, 2023. As previously reported by the Troubled Company Reporter, Corporation Service Company, as representative, and US Foods, Inc. may claim an interest in the Debtor's restaurant revenues. The restaurant revenues derive from a service provided and, therefore, such revenues are not cash collateral, as defined in 11 U.S.C. Section 363. However, revenues are derived, in part, from inventory used. If the restaurant revenues, or any part thereof, are deemed cash collateral, then pursuant to 11 U.S.C. Section 552, the restaurant revenues will be limited to the inventory used, based on the equities of the case. The value of inventory at any one time would be approximately $6,000. The Debtor will use the revenues of operations to pay operating expenses incurred in the normal course of its business. As adequate protection, the creditors were granted post-petition security interest in post-petition inventory and proceeds to the same extent and priority that it held a prepetition security interest in such inventory and proceeds, and to provide adequate protection payments to creditors in exchange for the Debtor's continued use of cash collateral postpetition. A copy of the order is available at https://urlcurt.com/u?l=nIT6Nv from PacerMonitor.com. About Chipley's Family Restaurant, LLC Chipley's Family Restaurant, LLC owns and operates restaurants known as Eddie Mae's Country Kitchen and Louise's Cafeteria. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Ga. Case No. 23-40451) on August 4, 2023. In the petition filed by Peter Brochu, the Debtor disclosed up to $100,000 in assets and up to $500,000 in liabilities. Judge John T. Laney, III oversees the case. Fife M Whiteside, Esq., at Fife M. Whiteside PC, represents the Debtor as legal counsel. COMPLIANCE TESTING: Case Summary & 17 Unsecured Creditors --------------------------------------------------------- Debtor: Compliance Testing, LLC 1724 South Nevada Way Mesa, AZ 85204 Business Description: Compliance Testing offers clients with the full testing services they need to achieve certification success. The Company povides worldwide compliance testing for FCC, IC and CE marks. The Company is able to offer services for the U.S., Canada, European Union, Australia/New Zealand, Korea, Japan and many other markets. Chapter 11 Petition Date: September 6, 2023 Court: United States Bankruptcy Court District of Arizona Case No.: 23-06163 Judge: Hon. Scott H. Gan Debtor's Counsel: Allan D. NewDelman, Esq. ALLAN D. NEWDELMAN, P.C. 80 East Columbus Avenue Phoenix, AZ 85012 Tel: 602-264-4550 Fax: 602-277-0144 Email: anewdelman@adnlaw.net Total Assets: $628,890 Total Liabilities: $5,560,180 The petition was signed by Michael C. Schafer as manager. 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/Y2NDRTA/COMPLIANCE_TESTING_LLC__azbke-23-06163__0001.0.pdf?mcid=tGE4TAMA CONVERGEONE HOLDINGS: S&P Downgrades ICR to 'CCC+', Outlook Stable ------------------------------------------------------------------ S&P Global Ratings lowered its issuer credit rating by one notch to 'CCC+' on U.S. value-added reseller ConvergeOne Holdings Inc. S&P also lowered its issue-level ratings on the first-lien and second-lien term loans by one notch, respectively, to 'CCC+' and 'CCC-'. S&P said, "The stable outlook reflects our belief that ConvergeOne's liquidity will be sufficient to cover modest near-term cash flow deficits, and our forecast for leverage and cash flow to improve steadily over the next 12 months. Nevertheless, given the elevated leverage, we believe if earnings and cash flow headwinds persist it will increase the risk of a distressed exchange or complications achieving a comprehensive debt refinancing." Ongoing earnings headwinds and a larger-than-expected increase in base interest rates render ConvergeOne's debt capitalization unsustainable. The company's earnings and cash flow have significantly underperformed relative to our prior expectations. S&P expects the company to be highly dependent on a decline in interest rates and strong realization of the $100 million in outlined cost savings initiatives to generate positive free operating cash flow and reduce S&P Global Ratings'-adjusted leverage from over 14x as of June 30, 2023. S&P Global Ratings'-adjusted EBITDA-to-interest coverage stood at 0.6x, compared with our prior expectation it would trough in the low-1x area and steadily improve. Driving this is a larger-than-expected increase in base interest rates combined with the company's fully unhedged floating interest rate exposure, and customer reluctance to purchase products from its struggling key vendor Avaya. Ongoing free operating cash flow (FOCF) deficits could complicate its medium-term debt refinancing needs. ConvergeOne's asset-based lending (ABL) revolver ($108 million outstanding) expires April 2025 and its first-lien term loan ($1.06 billion) matures January 2026. S&P's assessment reflects its view the company's ongoing cash flow deficits could complicate an otherwise straight forward debt refinancing over the next 24 months. The company has generated more than $130 million in cumulative unadjusted FOCF deficits since 2020. Supply chain headwinds should continue to recede, driving modest working capital release, and cost efficiency savings should support slight improvement in cash flow credit metrics over the next 12 months. S&P believes the company's new management team is making good progress, which was evident in the company's second-quarter results with revenue and EBITDA growth of 8% and 33%, respectively. S&P said, "We expect near-term liquidity will remain adequate. As of June 30, 2023, the company's liquidity sources totaled $142 million across its balance sheet cash and availability under its ABL revolver due April 2025. This should provide cushion to adequately absorb modest operating cash flow deficits. The credit agreement defined EBITDA to fixed charge coverage ratio declined below the minimum permitted 1.0x as of March 31, 2023, before improving modestly to 1.1x as of June 30, 2023. However, we expect EBITDA will improve sequentially in 2023 supporting compliance. We do not expect the covenant will be tested. We also assume the company extends its ABL before it becomes current in April 2024. "The stable outlook reflects our belief that ConvergeOne's liquidity will be sufficient to cover modest near-term cash flow deficits, and our forecast for leverage and cash flow to improve steadily over the next 12 months. Nevertheless, given the elevated leverage, we believe if earnings and cash flow headwinds persist it will increase the risk of a distressed exchange or complications achieving a comprehensive debt refinancing." Governance is a moderately negative consideration for ConvergeOne, as it is for most rated entities owned by private-equity sponsors. S&P believes the company's highly leveraged financial risk profile points to corporate decision-making that prioritizes the interests of the controlling owners. This also reflects private-equity sponsors' generally finite holding periods and focus on maximizing shareholder returns. CORNER OYSTER: Court OKs Cash Collateral Access on Final Basis -------------------------------------------------------------- The U.S. Bankruptcy Court for the Middle District of Georgia authorized Corner Oyster House, LLC to use cash collateral on a final basis in accordance with the budget. The Debtor's budget will include a $1,000 per month payment to the Chapter 11 Sub V Trustee commencing on September 15, 2023. As previously reported by the Troubled Company Reporter, Corporation Service Company, as representative, Vend Lease Company, Inc., TimePayment Corp. Funding Metrics, LLC, and U.S. Small Business Administration may claim an interest in restaurant revenues. The Debtors will use the revenues of operations to pay operating expenses incurred in the normal course of its business. The court said that the provisions of the interim order will become the final order. A copy of the order is available at https://urlcurt.com/u?l=INjORT from PacerMonitor.com. About Corner Oyster House, LLC Corner Oyster House, LLC owns and operates a restaurant known as Oyster House. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Ga. Case No. 23-40452) on August 4, 2023. In the petition signed by Peter Brochu, the Debtor disclosed up to $100,000 in assets and up to $1 million in liabilities. Judge John T. Laney, III, Esq., at represents the Debtor as legal counsel. Fife M Whiteside, Esq., at Fife M. Whiteside PC, represents the Debtor as legal counsel. CROWN N STUY: Voluntary Chapter 11 Case Summary ----------------------------------------------- Debtor: Crown N Stuy Corp. 578 Lexington Avenue Brooklyn, NY 11221 Business Description: Crown N Stuy is a Single Asset Real Estate debtor (as defined in 11 U.S.C. Section 101(51B)). Chapter 11 Petition Date: September 6, 2023 Court: United States Bankruptcy Court Eastern District of New York Case No.: 23-43181 Debtor's Counsel: Nnenna Onua, Esq. MCKINLEY ONUA & ASSOCIATES 26 Court Street Suite 300 Brooklyn, NY 11242 Tel: 718-522-0236 Email: nonua@mckinleyonua.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Steven Ross 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/4CUZCXA/CROWN_N_STUY_CORP__nyebke-23-43181__0001.0.pdf?mcid=tGE4TAMA CUSTOM LOGGING: Files Emergency Bid to Use Cash Collateral ---------------------------------------------------------- Custom Logging, LLC asks the U.S. Bankruptcy Court for the Eastern District of North Carolina, Raleigh Division, for authority to use cash collateral for 30 days. The Debtor requires the use of cash collateral to pay its ordinary expenses in accordance with the budget, with a 10% variance. The possible lienholders of the Debtor's cash collateral are Commercial Credit Group, Globex Funding, Iruka Capital Group, Parkview Advance, and Venture Plus Partners dba Avanza Capital. The Debtor proposes adequate protection to the Secured Creditors in the form of replacement liens in after-acquired revenue to the same extent as they had prior to the bankruptcy. A copy of the motion is available at https://urlcurt.com/u?l=jtzc5C from PacerMonitor.com. About Custom Logging, LLC Custom Logging, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. N.C. Case No. 23-02538) on September 1, 2023. In the petition signed by James Sherrill Sewel, member-manager, the Debtor disclosed $50,000 in assets and up to $10 million in liabilities. Judge Pamela W. Mcafee oversees the case. Philip M. Sasser, Esq., at Sasser Law Firm, represents the Debtor as legal counsel. DIOCESE OF ALBANY: Deadline to File Proofs of Claim Set for Nov. 1 ------------------------------------------------------------------ The U.S. Bankruptcy Court for the District of New York set Nov. 1, 2023, at 11:59 p.m. (prevailig Eastern Time), as the deadline to file proofs of claim against The Roman Catholic Diocese of Albany, New York. If you have a claim against the Diocese including, without limitation, a claim related to sexual abuse committed by any person connected with the Diocese, you must file a claim on or before the claims bar date with Donlin Recano, the appointed claims agent, at https://www.donlinrecano.com/rcda to obtain claim forms and for information on how to file your claim. If you have questions regarding filing your claim, you may contact Donlin Recano's restructuring information center toll free at 1 (800) 581-4729 or submit an inquiry via email at rcdainfo@drc.equiniti.com. Information regarding all entities within the geographical territory of the diocese that may be implicated by the Debtor's Chapter 11 case, including parishes, schools, other non-Debtor entities for which the bishop is the president, and sole member entities for which the bishop is the sole member may be found at https://www.rcda.org. About The Roman Catholic Diocese of Albany The Roman Catholic Diocese of Albany is a religious organization in Albany, N.Y. It covers 13 counties in Eastern New York, including a portion of the 14th county. Its Mother Church is the Cathedral of the Immaculate Conception in the city of Albany. New York's Child Victims Act, which took effect in August 2019, temporarily sets aside the usual statute of limitations for lawsuits to give victims of childhood sexual abuse a year to pursue even decades-old claims. Hundreds of new lawsuits have been filed against churches and other institutions since the law took effect on Aug. 14, 2019. Facing the financial weight of new sexual misconduct lawsuits, at least four of the eight Roman Catholic dioceses in the state, has already sought Chapter 11 protection. The dioceses that have declared bankruptcy include the Diocese of Rochester and the Diocese of Rockville Centre on Long Island. The Catholic Diocese of Albany sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D.N.Y. Case No. 23-10244) on March 15, 2023. In the petition filed by Fr. Robert P. Longobucco, the Debtor estimated assets between $10 million and $50 million and liabilities between $50 million and $100 million. Judge Robert E. Littlefield, Jr. oversees the case. The Debtor tapped Nolan Heller Kauffman, LLP as bankruptcy counsel; Tobin and Dempf, LLP as special litigation counsel; Keegan Linscott & Associates, PC as financial advisor; and Bonadio & Co., LLP as accountant. Donlin, Recano & Company, Inc. is the claims and noticing agent. On April 17, 2023, the U.S. Trustee for Region 2 appointed two separate committees to represent unsecured creditors and tort claimants in the Debtor's Chapter 11 case. The unsecured creditors' committee tapped Lemery Greisler, LLC as legal counsel; Dundon Advisors, LLC as financial advisor; and OneDigital Investment Advisors, LLC as special investment consultant. Stinson, LLP and OneDigital Investment Advisors serve as the tort committee's legal counsel and special investment consultant, respectively. DIVERSIFIED HEALTHCARE: S&P Downgrades ICR to 'CCC-', Outlook Neg. ------------------------------------------------------------------ S&P Global Ratings lowered its issuer credit rating on Diversified Healthcare Trust (DHC) to 'CCC-' from 'CCC+' and removed it from CreditWatch with positive implications, where S&P placed it on April 11, 2023. S&P said, "At the same time, we lowered our issue-level rating on the company's senior unsecured notes that aren't guaranteed to 'CCC-' from 'CCC+' and our rating on its guaranteed senior unsecured notes to 'CCC+' from 'B'. "The negative outlook reflects our view that significant liquidity pressure and refinancing risks remain, with the company's fully drawn revolver and senior unsecured notes due in 2024. The outlook also reflects our expectation for a gradual recovery in operating performance within the company's senior housing operating property (SHOP) portfolio, though the pace of the recovery has been and remains uncertain." DHC has material debt maturities coming due over the next 12 months and there is significant uncertainty surrounding its ability to raise capital. As of June 30, 2023, the company's ratio of consolidated income available for debt service to debt service was below the 1.5x incurrence requirement under its public debt covenants. DHC is not allowed to incur additional debt until the ratio is above 1.5x on a pro forma basis. The company has $250 million of senior unsecured notes due in May 2024 in addition to the company's fully drawn revolver due in January 2024. Given the upcoming maturities and the company's inability to incur additional debt, there is substantial doubt surrounding the company's ability to raise capital and refinance its upcoming maturities. S&P believes DHC depends on favorable business, financial, and economic conditions to meet its financial commitments. Due to the combination of the company's near-term maturities and its restriction from incurring additional debt, specific default scenarios are envisioned over the next six to 12 months. These scenarios include, but are not limited to, a near-term liquidity crisis, violation of financial covenants, or an issuer is likely to consider a distressed exchange offer or redemption in the next six to 12 months. Though operating performance has improved, the pace of the recovery has been difficult to predict, leaving an uncertain timeline for the company to regain covenant compliance. The company's SHOP portfolio has generated $40.2 million of net operating income (NOI) through the first two quarters of 2023, compared with just $8.7 million for all of 2022. NOI margins expanded to 8.0% during the second quarter of 2023, which is considerably higher than the high mark of 2.9% during the fourth quarter of 2022. While operating performance has improved substantially over the past few quarters, the pace of the recovery has been uneven. The company expects the recovery to slow during the second half of 2023, with limited incremental improvement relative to the first half of the year. As such, DHC does not expect to regain debt covenant compliance before mid-2024 at the earliest, before which $700 million of debt is due. The company's debt service ratio was 1.08x as of June 30, 2023, below the 1.5x minimum requirement, an improvement from a low of 0.79x as of Sept. 30, 2022. The negative outlook reflects S&P's view that significant liquidity pressure and refinancing risks remain, with the company's fully drawn revolver and senior unsecured notes due in the first half of 2024. S&P could lower its ratings on DHC if it expects a default to be a virtual certainty, regardless of the time to default. S&P's could revise its outlook to stable or raise the ratings if: -- The company successfully refinances its upcoming debt maturities and improves its liquidity position such that near-term concerns are alleviated; and -- Operating performance shows continued signs of recovery. EL MILAGRO DE DIOS: Voluntary Chapter 11 Case Summary ----------------------------------------------------- Debtor: El Milagro de Dios Corporation 149 Depot Road Huntington Station, NY 11746 Business Description: The Debtor is engaged in activities related to real estate. Chapter 11 Petition Date: September 6, 2023 Court: United States Bankruptcy Court Eastern District of New York Case No.: 23-73274 Judge: Hon. Robert E. Grossman Debtor's Counsel: Ronald D. Weiss, Esq. RONALD D. WEISS, P.C. 734 Walt Whitman Road Suite 203 Melville, NY 11747 Tel: (631) 271-3737 Fax: (631) 271-3784 Email: weiss@ny-bankruptcy.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $500,000 to $1 million The petition was signed by Jose Rivera as president. The Debtor stated it has no unsecured creditors. A full-text copy of the petition is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/SHTCHQY/El_Milagro_de_Dios_Corporation__nyebke-23-73274__0001.0.pdf?mcid=tGE4TAMA ENCORE CAPITAL: Moody's Affirms 'Ba1' CFR, Outlook Remains Stable ----------------------------------------------------------------- Moody's Investors Service has affirmed Encore Capital Group, Inc.'s Ba1 corporate family rating and its Ba2 backed senior secured debt rating. The issuer outlook remains stable. RATINGS RATIONALE The affirmation of Encore's Ba1 CFR reflects the company's steadily recovering profitability, following deterioration in Q4 2022, but which remains below pre-Covid performance due to elevated funding costs and lower investments. The CFR also reflects the company's moderate leverage and solid liquidity, with abundant availability under its credit line and laddered debt maturities with no material near term refinancing due. In addition, the CFR reflects Encore's global franchise enabling deployment of capital at attractive returns through selective portfolio purchases, but at the same time considers regulatory risk inherent to the debt collection business, particularly in the United States (US). In line with Moody's expectations, Encore's profitability and cash flow metrics moderated following the phase out of government support measures in the US and the United Kingdom (UK). This resulted in a dip in portfolio purchases, due to supply constraints, and cash collections after a period of higher than expected cash collections in the US in 2020-2021. However, the gradual recovery of the economies and a rebound in consumer spending, in particular in the US where portfolio supply and pricing have been improving, will support the on-going recovery in Encore's revenue stream. Encore has a diversified funding profile supporting its strong liquidity, as well as, efficient operations, benefiting from the presence of low cost back-office operations in India and economies of scale. These factors provide some flexibility to Encore to be more selective when making investment decisions and enables the firm to protect its capital in the midst of more challenging operating conditions. The current high inflationary and higher interest rate environment will erode consumers' ability to re-pay outstanding debt, slowing collections as well as elevate borrowing costs to finance portfolio investments. Compared to the U.S., Encore has made a lower level of purchases in the UK and Europe given competition and pricing pressures. As portfolio supply increases and pricing becomes more favorable, Moody's expects Encore to replenish its UK and European portfolio to large extent over the next 12-18 months. Moody's expects Encore's Debt/EBITDA leverage to remain elevated as portfolio purchases are financed by increased levels of debt. However, as revenues and collections grow, Moody's expect leverage to recover and remain within the company's maximum leverage guidance of 3x and for interest coverage to improve from current levels. The Ba2 rating of Encore's backed senior secured notes is based on Encore's Ba1 CFR and reflects their priorities of claims and asset coverage in Encore's liability structure. The stable outlook reflects Moody's expectations that Encore's profitability will steadily recover to a stronger level, interest coverage and liquidity will remain strong and the company's leverage metrics will remain largely steady, consistent with its credit metrics of the Ba1 corporate family rating. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Encore's CFR could be upgraded if the company: 1) continues to demonstrate strong financial performance, with consistently solid profitability and cash flows; 2) diversifies its geographical mix, which would reduce its exposure to the regulatory risk in a given region; 3) diversifies its product offering mix to include revenue sources from profitable capital-light fee based businesses; and 4) if Moody's deems that the operating environment for debt purchasers has further improved. Encore's CFR could be downgraded in case of: 1) meaningful and sustained deterioration in the company's profitability and cash flows; 2) increase in leverage, on a sustained basis, to above 3x, measured as Debt/EBITDA; 3) substantial erosion in capitalisation; 4) failure to maintain adequate committed revolving borrowing availability, or if liquidity otherwise materially weakens; or 5) regulatory developments in a country to which the company has significant business exposure that would have a significant negative impact on the company's financial performance. A change in the CFR would lead to a similar upward or downward change of the guaranteed senior secured debt rating. Further, the guaranteed senior secured debt rating could be upgraded with changes to the liability structure that would decrease the amount of debt considered senior to the notes or increase the amount of debt considered junior to the notes. The debt rating could be downgraded if the amount of debt considered senior to the notes increases. PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Finance Companies Methodology published in November 2019. EVENT PROMOTION: Court OKs Interim Cash Collateral Access --------------------------------------------------------- The U.S. Bankruptcy Court for the District of Colorado authorized Event Promotion Supply, Inc. to use cash collateral on an interim basis in accordance with the budget, with a 15% variance. The Debtor has one primary secured creditor, the Small Business Administration, who claims a lien on all of the Debtor's inventory and accounts. In or around 2020, the Debtor received a Disaster COVID-19 Economic Injury loan from the SBA, where the SBA loaned the principal amount of $150,000 to the Debtor. In exchange for the loan, the Debtor gave the SBA essentially a blanket lien, which covers the Debtor's inventory, equipment, account, and general intangibles. The Debtor pays a monthly interest payment of $731 for this SBA loan. In performing a UCC-1 search of the Debtor, it was also discovered that Stenson Tamaddon LLC. It is believed that the Debtor owes Stenson approximately $11,000. Given the nature of this lien, it is believed that Stenson has no collateral that is secured by this lien as the tax credit has been paid out to employees. However, the Debtor will provide notice of the Motion to Stenson out of an abundance of caution. As adequate protection, the Debtor will provide the U.S. Small Business Administration with a replacement post-petition lien on all postpetition inventory, accounts receivable, and income derived from the operation of the business and assets, to the extent that the use of the cash reduces the value of the SBA's interest in the collateral pursuant to 11 U.S.C. section 361(2). The replacement lien will hold the same relative priority to assets as did its prepetition lien. The Debtor will continue paying the SBA in accordance with their loan agreement. A final hearing on the matter is set for September 25, 2023 at 10 a.m. A copy of the motion is available at https://urlcurt.com/u?l=BMcnuL from PacerMonitor.com. A copy of the budget is available at https://urlcurt.com/u?l=lQTpz1 from PacerMonitor.com. About Event Promotion Supply, Inc. Event Promotion Supply, Inc. is a large format printing company. EPS-Doublet can create a custom trade show booth design, fabricate, install, and even manage a show. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Colo. Case No. 23-13911) on August 30, 2023. In the petition signed by Jon Leasia, secretary, the Debtor disclosed up to $10 million in both assets and liabilities. Annette Jarvis, Esq., at Greenberg Traurig LLP, represents the Debtor as legal counsel. EVENTIDE CREDIT: Case Summary & 13 Unsecured Creditors ------------------------------------------------------ Debtor: Eventide Credit Acquisitions, LLC 3805 Greenbrier Drive Dallas TX 75225 Chapter 11 Petition Date: September 6, 2023 Court: United States Bankruptcy Court Northern District of Texas Case No.: 23-90007 Judge: Hon. Mark X. Mullin Debtor's Counsel: Jeff Prostok, Esq. FORSHEY PROSTOK 777 Main Street Suite 1550 Forth Worth TX 76102 Tel: (817) 877-8855 Email: jprostok@forsheyprostok.com Estimated Assets: $50 million to $100 million Estimated Liabilities: $50 million to $100 million The petition was signed by Matt Martorello as manager. A full-text copy of the petition is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/ZD3KTIA/Eventide_Credit_Acquisitions_LLC__txnbke-23-90007__0001.0.pdf?mcid=tGE4TAMA List of Debtor's 13 Unsecured Creditors: Entity Nature of Claim Claim Amount 1. Van Ness Feldman, LLP Legal Services Unknown 1050 Thomas Jefferson St. NW Seventh Floor Washington, DC 20007 Tel: 202-298-1800 2. Nutter, McClennen & Legal Services Unknown Fish, LLP 155 Seaport Boulevard Boston, MA 02210-2604 Tel: 617-439-2421 Fax: 617-310-9421 Email: iroffman@nutter.com 3. Holland & Knight, LLP Legal Services Unknown 601 SW Second Avenue Suite 1800 Portland, OR 97204 Tel: 503-517-2948 Email: kristin.asai@hklaw.com 4. Brophy & Devaney, PLLC Legal Services Unknown The Overlook at Barton Creek 317 Grace Lane, Suite 210 Austin, Texas 78746 Tel: 512-596-3623 Email: joe@bdlawpllc.com 5. Giordani Baker Grossman & Legal Services Unknown Ripp, LLP 100 Congress Ave. Ste. 1440 Austin, Texas 78701 Email: lfitte@gbgrlaw.com 6. Freeman Law, PLLC Legal Services Unknown 1412 Main Street Suite 500 Dallas, TX 75202 Tel: 214-984-3410 Email: info@freemanlaw.com 7. Hall Estill Legal Services Unknown 100 N. Broadway Ave. Suite 2900 Oklahoma City, OK 73102 Email: blynch@hallestill.com 8. Beth Gernenz Litigation Unknown c/o Daniel A. Adelman Edelman Combs Latturner & Goodwin LLC 20 S. Clark St. Suite 1500 Chicago, IL 60603 Email: courtecl@edcombs.com 9. Richard L. Smith, Jr. and Litigation Unknown all Plaintiffs c/o Michael A. Caddell, Esq. Cadell & Chapman 628 East 9th Street Houston TX 77007 Email: mac@caddellchapman.com 10. Dana Duggan and all Litigation Unknown Plaintiffs c/o Michael A. Caddell, Esq. Caddell & Chapman 628 East 9th Street Houston TX 77007 Email: mac@caddellchapman.com 11. Matthew Hall Litigation Unknown c/o Daniel A. Edelman Edelman Combs Latturner & Goodwin LLC 20 S Clark St. Suite 1500 Chicago, IL 60603 Email: courtecl@edcombs.com 12. Renee Galloway and Litigation Unknown all Plaintiffs c/o Leonard Anthony Bennett Consumer Litigation Associates 763 J Clyde Morris Boulevard, Ste 1A Newport News, VA 23601 Email: lenbennett@clalegal.com 13. American Arbitration Arbitration Unknown Association Services 150 N. Michigan Ave. Ste. 3050 Chicago, IL 60601 Tel: 773-820-7801 FREE SPEECH: Wants $1.5 Million New Salary for Alex Jones --------------------------------------------------------- James Nani of Bloomberg Law reports that Infowars' bankrupt parent, Free Speech, has proposed a $1.5 million annual salary for Alex Jones, the conservative firebrand ordered to pay almost $1.4 billion to families of Sandy Hook Elementary School shooting victims. In addition to the salary, the proposed five-year employment contract between Jones and Free Speech Systems LLC would provide potential annual bonuses of up to 20% of revenue based on profit milestones, according a motion to approve the deal filed Tuesday, August 29, 2023. The request comes as Judge Christopher Lopez of the US Bankruptcy Court for the Southern District of Texas considers a key question in the Jones’ personal bankruptcy case. About Free Speech Systems Free Speech Systems LLC is a broadcast media production and distribution company that provides broadcasting aural programs by radio to the public. Free Speech Systems is a family-run business founded by Alex Jones. FSS is presently engaged in the business of producing and syndicating Jones' radio and video talk shows and selling products targeted to Jones' loyal fan base via the Internet. Today, FSS produces Alex Jones' syndicated news/talk show (The Alex Jones Show) from Austin, Texas, which airs via the Genesis Communications Network on over 100 radio stations across the United States and via the internet through websites including Infowars.com. Due to the content of Alex Jones' shows, Jones and FSS have faced an all-out ban of Infowars from mainstream online spaces. Shunning from financial institutions and banning Jones and FSS from major tech companies began in 2018. Conspiracy theorist Alex Jones has been sued by victims' family members over Jones' lies that the 2012 Sandy Hook Elementary School shooting was a hoax. Jones' InfoW LLC and affiliates, IWHealth, LLC and Prison Planet TV, LLC, filed petitions under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. S.D. Texas Lead Case No. 22-60020) on April 18, 2022. The Debtors agreed to the dismissal of the Chapter 11 cases in June 2022 after the Sandy Hook victim families dismissed the three bankrupt companies from their lawsuits. Free Speech Systems filed a voluntary petition for relief under Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Case No. 22-60043) on July 29, 2022. In the petition filed by W. Marc Schwartz, as chief restructuring officer, the Debtor reported assets and liabilities between $50 million and $100 million. Melissa A Haselden has been appointed as Subchapter V trustee. Alexander E. Jones filed for personal bankruptcy under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Case No. 22-60043) on Dec. 2, 2022, listing $1 million to $10 million in assets against liabilities of $1 billion to $10 billion in liabilities. Raymond William Battaglia, of Law Offices of Ray Battaglia, PLLC, is FSS's counsel. Raymond W. Battaglia and Crowe & Dunlevy, P.C., led by Vickie L. Driver, Christina W. Stephenson, Shelby A. Jordan, and Antonio Ortiz are representing Alex Jones. FTX GROUP: Bankman-Fried May Call Experts to Testify at Fraud Trial ------------------------------------------------------------------- Ava Benny-Morrison of Bloomberg Law reports that FTX co-founder Sam Bankman-Fried may call seven expert witnesses, paying them up to $1,200 an hour, to testify on his behalf at his upcoming fraud trial. The witnesses would give evidence about campaign finance laws, valuations of FTX and its hedge fund affiliate Alameda Research and the crypto exchange's software infrastructure and terms of service, according to a letter filed in federal court in Manhattan this week. The document gives an insight into how the former chief executive, who is accused of orchestrating a multibillion dollar fraud, is shaping his defense when prosecutors have a group of his former friends and colleagues poised to testify against him in October. Judge Lewis A. Kaplan revoked his bail in August after finding he likely committed witness tampering on two occasions. A spokesman for Bankman-Fried declined to comment. The 31-year-old has pleaded not guilty to all the counts against him. Federal prosecutors are seeking to block the witnesses however, arguing the experts will only provide testimony about Bankman-Fried's "supposed lack of criminal knowledge or intent" gleaned from talking to others. It is not unusual for both defendants and the prosecution to use expert witnesses as part of their cases. Prosecutors and Bankman-Fried's defense team have recently exchanged a volley of letters about his conditions inside Brooklyn's Metropolitan Detention Center and the rate at which evidence is being handed over. The defense wanted any discovery — including communications on the Slack messaging app from former FTX executive and cooperating witness Gary Wang's laptop — to be excluded from the trial because the information was given to Bankman-Fried after July 1, mere weeks before the start of the trial. But at a hearing on Wednesday, Judge Kaplan knocked down the request, saying "the accusation of broken promises and missed deadlines are not at all accurate." The judge still hasn't made a decision about whether Bankman-Fried can leave jail several days a week so he can work with his attorneys at the Manhattan federal courthouse. After Bankman-Fried complained about his lack of internet access in the detention center, the government organized hard drives with some legal materials to review and a laptop for him to use. "There are a number of procedures in place that allow him access to review discovery even seven days a week up to 70 hours if he so chooses," federal prosecutor Danielle Kudla said. While Bankman-Fried's lawyers push for more access to their client, they are also lining up experts to prepare his defense on the outside. Former Federal Election Commission Chairperson Bradley Smith will charge Bankman-Fried's legal team $1,200 an hour to provide insight into US campaign finance laws and straw donors. While the government dropped a campaign finance charge against Bankman-Fried recently, prosecutors still will present evidence about how the crypto mogul allegedly had company executives make millions in political donations to influence industry regulation. The other witnesses could charge between $400 and $1,100 an hour. One expert witness, financial services industry consultant Peter Vinella, would opine that many allegations in Bankman-Fried's indictment were "widely-accepted practices in the financial services industry," including the unrestricted use of customer assets. Another possible witness, Professor Andrew Di Wu, would discuss blockchain technology and the crypto market meltdowns of 2022. Three of Bankman-Fried's closest associates have pleaded guilty to fraud and agreed to cooperate with the government. Bankman-Fried is accused of commingling customer funds and funneling money from the exchange to spend on loans to executives, real estate purchases and high-risk trading before FTX collapsed in November 2022. Bankman-Fried may also rely on an advice of counsel defense, court filings show, and argue he was following the directions of FTX's attorneys when he did many of the things prosecutors claim were illegal. The case is US v. Bankman-Fried, 22-cr-673, US District Court, Southern District of New York (Manhattan). About FTX Group FTX is the world's second-largest cryptocurrency firm. FTX is a cryptocurrency exchange built by traders, for traders. FTX offers innovative products including industry-first derivatives, options, volatility products and leveraged tokens. Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that FTX paused customer withdrawals after it was hit with roughly $5 billion worth of withdrawal requests. Faced with liquidity issues, FTX on Nov. 9 struck a deal to sell itself to its giant rival Binance, but Binance walked away from the deal amid reports on FTX regarding mishandled customer funds and alleged US agency investigations. At 4:30 a.m. on Nov. 11, Bankman-Fried ultimately agreed to step aside, and restructuring vet John J. Ray III was quickly named new CEO. FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc. (d/b/a FTX US), Alameda Research Ltd. and certain affiliated companies then commenced Chapter 11 proceedings (Bankr. D. Del. Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022. Additional entities sought Chapter 11 protection on Nov. 14, 2022. FTX Trading and its affiliates each listed $10 billion to $50 million in assets and liabilities, making FTX the biggest bankruptcy filer in the US this year. According to Reuters, SBF shared a document with investors on Nov. 10, 2022, showing FTX had $13.86 billion in liabilities and $14.6 billion in assets. However, only $900 million of those assets were liquid, leading to the cash crunch that ended with the company filing for bankruptcy. The Hon. John T. Dorsey is the case judge. The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel; Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal North America, LLC as financial advisor. Kroll is the claims agent, maintaining the page https://cases.ra.kroll.com/FTX/Home-Index The Official Committee of Unsecured Creditors tapped Paul Hastings as counsel, FTI Consulting, Inc., as financial advisor, and Jefferies LLC as the investment banker. Young Conaway Stargatt & Taylor LLP is the Committee's Delaware and conflicts counsel. Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory T. Donilon, Edward L. Schnitzer, and David M. Banker, is representing Sam Bankman-Fried in the Chapter 11 cases. White-collar crime specialist Mark S. Cohen has reportedly been hired to represent SBF in litigation. Lawyers at Paul Weiss previously represented SBF but later renounced representing the entrepreneur due to a conflict of interest. FTX GROUP: Experiences Cybersecurity Breach Amid Chapter 11 ----------------------------------------------------------- Benjamin Godfrey of CoinSpeaker reports that FTX highlighted the pressing concern of potential fraudulent activities and scams and advised users to exercise heightened caution against any emails or communications that may impersonate parties involved in the bankruptcy proceedings. In an alarming development, the defunct crypto exchange FTX has fallen victim to a cybersecurity breach amidst the company’s ongoing bankruptcy case. FTX took to the X platform to disseminate information about the cybersecurity breach to its customers, creditors, and the general public earlier today. The breach, involving FTX's bankruptcy case claims agent, Kroll, has exposed limited, non-sensitive customer data of specific claimants. In a proactive stance, FTX is actively overseeing the situation, providing a clear message that the security of account passwords and integral systems is uncompromised. The exchange emphasized that its own systems were not impacted by the breach and that customer passwords were not under Kroll’s purview. "The incident occurred at Kroll, and Kroll is notifying affected individuals directly with measures that customers can take to protect themselves. FTX account passwords were not maintained by Kroll, and FTX's own systems were not affected," the exchange said in a statement. Furthermore, FTX highlighted the pressing concern of potential fraudulent activities and scams and advised users to exercise heightened caution against any emails or communications that may impersonate parties involved in the bankruptcy proceedings. This warning is a crucial step in preventing further exploitation by cybercriminals seeking to capitalize on the situation. Meanwhile, blockchain analyst ZachXBT has sounded an alarm, revealing that FTX clients are already falling prey to fraudulent emails. This troubling escalation in the issue shows that not only has personal information been compromised, but bad actors are now exploiting the breach to perpetrate scams. Kroll Breach: Bad Timing for FTX? The timing of this breach couldn't have been worse for FTX. As the company navigates the complex waters of bankruptcy, the breach has introduced an additional layer of uncertainty and potential disruption to the ongoing reorganization process. What makes this breach all the more noteworthy is its timing, occurring mere days after FTX’s announcement of its intentions to engage Galaxy Digital for assistance in dealing with its substantial crypto holdings. FTX, rather than returning funds to creditors in Bitcoin (BTC) or Ethereum (ETH), is seeking to convert its crypto holdings into fiat currencies. The goal is to avoid potential value fluctuations in the highly volatile crypto market and ensure a more stable return for creditors. With non-sensitive email records now potentially compromised, the confidentiality of discussions, negotiations, and strategic decisions within the company could be compromised. This could lead to mistrust among stakeholders such as creditors, investors, and customers, straining efforts to navigate the bankruptcy proceedings even further. As the crypto industry continues to evolve, cybersecurity challenges are becoming increasingly prevalent. Organizations operating in this industry must appreciate the importance of strong security measures that protect user data and sensitive information. This includes implementing strong encryption protocols, multi-factor authentication, regular security audits, and employee training on cybersecurity best practices. About FTX Group FTX is the world's second-largest cryptocurrency firm. FTX is a cryptocurrency exchange built by traders, for traders. FTX offers innovative products including industry-first derivatives, options, volatility products and leveraged tokens. Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that FTX paused customer withdrawals after it was hit with roughly $5 billion worth of withdrawal requests. Faced with liquidity issues, FTX on Nov. 9 struck a deal to sell itself to its giant rival Binance, but Binance walked away from the deal amid reports on FTX regarding mishandled customer funds and alleged US agency investigations. At 4:30 a.m. on Nov. 11, Bankman-Fried ultimately agreed to step aside, and restructuring vet John J. Ray III was quickly named new CEO. FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc. (d/b/a FTX US), Alameda Research Ltd. and certain affiliated companies then commenced Chapter 11 proceedings (Bankr. D. Del. Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022. Additional entities sought Chapter 11 protection on Nov. 14, 2022. FTX Trading and its affiliates each listed $10 billion to $50 million in assets and liabilities, making FTX the biggest bankruptcy filer in the US this year. According to Reuters, SBF shared a document with investors on Nov. 10, 2022, showing FTX had $13.86 billion in liabilities and $14.6 billion in assets. However, only $900 million of those assets were liquid, leading to the cash crunch that ended with the company filing for bankruptcy. The Hon. John T. Dorsey is the case judge. The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel; Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal North America, LLC as financial advisor. Kroll is the claims agent, maintaining the page https://cases.ra.kroll.com/FTX/Home-Index The Official Committee of Unsecured Creditors tapped Paul Hastings as counsel, FTI Consulting, Inc., as financial advisor, and Jefferies LLC as the investment banker. Young Conaway Stargatt & Taylor LLP is the Committee's Delaware and conflicts counsel. Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory T. Donilon, Edward L. Schnitzer, and David M. Banker, is representing Sam Bankman-Fried in the Chapter 11 cases. White-collar crime specialist Mark S. Cohen has reportedly been hired to represent SBF in litigation. Lawyers at Paul Weiss previously represented SBF but later renounced representing the entrepreneur due to a conflict of interest. FTX GROUP: Former FEC Chairman, London Attorney Can't Testify ------------------------------------------------------------- Rachel Scharf of Law360 reports that prosecutors asked a Manhattan federal judge on Monday, August 28, 2023, to bar both the former chair of the Federal Election Commission and an English barrister from testifying as expert witnesses in FTX founder Sam Bankman-Fried's upcoming criminal trial. About FTX Group FTX is the world's second-largest cryptocurrency firm. FTX is a cryptocurrency exchange built by traders, for traders. FTX offers innovative products including industry-first derivatives, options, volatility products and leveraged tokens. Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that FTX paused customer withdrawals after it was hit with roughly $5 billion worth of withdrawal requests. Faced with liquidity issues, FTX on Nov. 9 struck a deal to sell itself to its giant rival Binance, but Binance walked away from the deal amid reports on FTX regarding mishandled customer funds and alleged US agency investigations. At 4:30 a.m. on Nov. 11, Bankman-Fried ultimately agreed to step aside, and restructuring vet John J. Ray III was quickly named new CEO. FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc. (d/b/a FTX US), Alameda Research Ltd. and certain affiliated companies then commenced Chapter 11 proceedings (Bankr. D. Del. Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022. Additional entities sought Chapter 11 protection on Nov. 14, 2022. FTX Trading and its affiliates each listed $10 billion to $50 million in assets and liabilities, making FTX the biggest bankruptcy filer in the US this year. According to Reuters, SBF shared a document with investors on Nov. 10, 2022, showing FTX had $13.86 billion in liabilities and $14.6 billion in assets. However, only $900 million of those assets were liquid, leading to the cash crunch that ended with the company filing for bankruptcy. The Hon. John T. Dorsey is the case judge. The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel; Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal North America, LLC as financial advisor. Kroll is the claims agent, maintaining the page https://cases.ra.kroll.com/FTX/Home-Index The Official Committee of Unsecured Creditors tapped Paul Hastings as counsel, FTI Consulting, Inc., as financial advisor, and Jefferies LLC as the investment banker. Young Conaway Stargatt & Taylor LLP is the Committee's Delaware and conflicts counsel. Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory T. Donilon, Edward L. Schnitzer, and David M. Banker, is representing Sam Bankman-Fried in the Chapter 11 cases. White-collar crime specialist Mark S. Cohen has reportedly been hired to represent SBF in litigation. Lawyers at Paul Weiss previously represented SBF but later renounced representing the entrepreneur due to a conflict of interest. FUJI JAPANESE: Court OKs Interim Cash Collateral Access ------------------------------------------------------- The U.S. Bankruptcy Court for the Western District of Texas, Waco Division, authorized Fuji Japanese Steakhouse Asian Bistro Inc. to use cash collateral on an interim basis in accordance with the budget, with 5% variance. As previously reported by the Troubled Company Reporter, a search in the Texas Secretary of State shows that allegedly secured positions are held, in order of priority, by: PNC Bank (formerly BBVA), the SBA, Capital Certified Dev. Corp. (an SBA loan), NewTek Small Business Finance, Funding Metrics, Westwood Funding, RDM Capital, and IOU. The court ruled that the creditors are granted replacement liens on all post-petition cash collateral and post-petition acquired property to the same extent and priority they possessed as of the Petition Date without the necessity of the execution, recording or filing of mortgages, security agreements, pledge agreements, financing statements, deposit control agreements, or other documents. A further hearing on the matter is set for September 26, 2023 at 1:30 p.m. A copy of the order is available at https://urlcurt.com/u?l=AMq0B9 from PacerMonitor.com. About Fuji Japanese Steakhouse Asian Bistro Inc. Fuji Japanese Steakhouse Asian Bistro Inc. owns and operate a restaurant. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No. 23-60445) on August 31, 2023. In the petition signed by Shuang Lin, president, the Debtor disclosed $4,861,717 in assets and $7,110,297 in liabilities. Judge Michael M. Parker oversees the case. Robert C. Lane, Esq., at the Lane Law Firm, represents the Debtor as legal counsel. GENESIS GLOBAL: Seeks to Extend Plan Exclusivity to October 2 ------------------------------------------------------------- Genesis Global Holdco, LLC and its affiliates ask the U.S. Bankruptcy Court for the Southern District of New York to extend their exclusive periods in which to file a chapter 11 plan and solicit acceptances thereof to October 2, 2023 and November 30, 2023, respectively. The Debtors claimed that they have been actively engaged on numerous fronts in their chapter 11 cases to ensure that they are well-positioned to confirm a plan expeditiously while preserving the flexibility to pursue a potential global settlement. The Debtors explained, however, that they require additional time as they intend, among other things: (a) to continue negotiating with parties in interest regarding a potential global resolution, (b) to work to address any objections that may be raised with respect to the disclosure statement or the plan; (c) to solicit votes on the Plan following the Court's approval of the disclosure statement; (d) to continue reconciling claims and refining their understanding of the claims pool; and (e) to seek approval of the settlement between the Debtors and FTX by filing a motion pursuant to Bankruptcy Rule 9019. Genesis Global Holdco, LLC and its affiliates are represented by: Sean A. O'Neal, Esq. Luke A. Barefoot, Esq. Jane VanLare, Esq. CLEARY GOTTLIEB STEEN & HAMILTON LLP One Liberty Plaza New York, NY 10006 Tel: (212) 225-2000 About Genesis Global Genesis Global Holdco, LLC, through its subsidiaries, and Global Trading, Inc., provide lending and borrowing, spot trading, derivatives and custody services for digital assets and fiat currency. Genesis Global Capital, LLC (GGC) and Genesis Asia Pacific PTE. LTD. (GAP) provide lending and borrowing, spot trading, derivatives and custody services for digital assets and fiat currency. Genesis Global Holdco, LLC owns 100% of GGC and GAP. Genesis Global Holdco, LLC, GGC and GAP each filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 23-10063) on Jan. 19, 2023. The cases are pending before the Honorable Sean H. Lane. At the time of the filing, Genesis Holdco reported $100 million to $500 million in both assets and liabilities. Genesis Holdco is a sister company of Genesis Global Trading, Inc. ("GGT") and 100% owned by Digital Currency Group, Inc. ("DCG"). GGT, DCG and certain of the Holdco subsidiaries are not included in the Chapter 11 filings. The non-debtor subsidiaries include Genesis UK Holdco Limited, Genesis Global Assets, LLC, Genesis Asia (Hong Kong) Limited, Genesis Bermuda Holdco Limited, Genesis Custody Limited ("GCL"), GGC International Limited ("GGCI"), GGA International Limited, Genesis Global Markets Limited, GSB 2022 II LLC, GSB 2022 III LLC and GSB 2022 I LLC. The Debtors tapped Cleary Gottlieb Steen & Hamilton, LLP as bankruptcy counsel; Morrison Cohen, LLP as special counsel; Alvarez & Marsal Holdings, LLC as financial advisor; and Moelis & Company, LLC as investment banker. Kroll Restructuring Administration, LLC is the Debtors' claims and noticing agent and administrative advisor. The ad hoc group of creditors is represented by Kirkland & Ellis, LLP and Kirkland & Ellis International, LLP. The ad hoc group of Genesis lenders is represented by Proskauer Rose, LLP. The U.S. Trustee for Region 2 appointed an official committee to represent unsecured creditors in the Debtors' Chapter 11 cases. The committee tapped White & Case, LLP as bankruptcy counsel; Houlihan Lokey Capital, Inc., as investment banker; Berkeley Research Group, LLC as financial advisor; and Kroll as information agent. GIP PILOT: S&P Assigns 'BB-' Issuer Credit Rating, Outlook Stable ----------------------------------------------------------------- S&P Global Ratings assigned its 'BB-' issuer credit rating (ICR) to GIP Pilot Acquisition Partners L.P. (GIP Pilot), and its 'BB-' issue-level rating and '3' recovery rating to the senior secured TLB. The '3' recovery rating on the term loan indicates our expectation for meaningful (50%-70%; rounded estimate: 60%) recovery in the event of a payment default. The stable outlook reflects S&P's expectation that GIP Pilot will receive stable distributions from CPHC and will use them to reduce its debt balance via excess cash sweeps such that its leverage will be about 2.4x in 2024 and about 3.2x in 2025. GIP Pilot is a subsidiary of Global Infrastructure Partners (GIP) that holds a 40% non-operating, non-controlling equity interest in Columbia Pipelines Holdings Co. LLC (CPHC). GIP Pilot is issuing a $1.1 billion senior secured term loan B (TLB) due 2030, which it will use to finance the acquisition of its interest in CPHC from TC Energy Corp. (TC Energy). S&P's rating on GIP Pilot reflects the difference in credit quality compared with that of CPHC. GIP Pilot relies solely on distributions from CPHC to service its senior secured TLB due 2030 because it does not have any other substantive assets. Therefore, S&P rates GIP Pilot under its noncontrolling equity interest criteria. Our view of GIP Pilot's credit profile incorporates its financial ratios, CPHC's cash flow stability, the company's ability to influence CPHC's financial policy, and its ability to liquidate its investment in CPHC to repay the $1.1 billion senior secured TLB. S&P expects the company will receive stable distributions from CPHC over the life of the loan. Asset-level cash flows are supported by the significant scale of the CPHC pipeline system, its access to the Appalachian basin, and its robust credit profile underpinned by its 95% revenue through take-or-pay contracts with a diverse and creditworthy customer base. CPHC's customer base is composed of 41% local distribution companies (LDCs), 41% producers, and 13% marketers. Weighted average contract life is about seven years with a strong track record of contract renewals. CPHC's pipeline system stretches over 15,000 miles and supports 15.6 billion cubic feet per day (Bcf/d) of throughput capacity. It also has one of the largest underground natural gas storage systems with 273 billion cubic feet (Bcf) of integrated working gas capacity. These characteristics support our positive cash flow assessment. GIP Pilot has substantial governance rights over CPHC. CPHC is required to distribute all its distributable cash flow to its owners--TC Energy and GIP Pilot--quarterly. GIP Pilot holds the voting power on key decisions, including growth projects, capital structure, leverage, and financial policy. Any key decisions and budget changes need GIP's approval, and any adjustments to distributions from CPHC require a unanimous decision. In S&P's view, however, there is not a sufficient track record of stable or growing distributions through various industry cycles from the pipeline, which limits its assessment of corporate governance and financial policy at neutral. S&P expects debt to EBITDA will increase 2025 S&P said, "We expect GIP Pilot's debt-to-EBITDA ratio will be 2.4x in 2024 before rising to about 3.2x in 2025, spurred by an increase in growth capital expenditures (capex) in 2025, partially offset by its excess cash sweep and mandatory amortization. The TLB has an excess cash flow provision that requires the company to sweep a certain proportion of excess cash flow against the term loan balance based on consolidated proportional leverage ratio. In 2024, we expect the company will repay a total of $170 million against the TLB through 1% mandatory amortization and 50% excess cash flow sweep. In 2025, we expect the company will repay a total of $110 million against the TLB through the same mandatory amortization and excess cash flow sweep. "At the same time, we project the EBITDA interest coverage ratio will be 4.6x in 2024 and 3.7x in 2025. Both debt-to-EBITDA and EBITDA interest coverage ratios are weaker in 2025 than in 2024 due to the higher growth capex spending at CPHC in 2025, which will limit net distributions to GIP Pilot. These ratios result in a neutral assessment of its financial ratios. "Our view of GIP Pilot's ability to liquidate its investment in CPHC is negative because CPHC is not publicly traded. "The stable outlook reflects our expectation that GIP Pilot will receive stable cash flows from its highly contracted investee company, CPHC. We expect that GIP Pilot will use the distributions to reduce its debt balance via excess cash sweeps and that debt to EBITDA will be 2.4x in 2024 and 3.2x in 2025. We expect the interest coverage ratio will be 4.6x in 2024 and 3.7x in 2025. "We could take a negative rating action if we expect GIP Pilot to maintain debt to EBITDA above 4.0x or interest coverage below 3.0x, which could happen due to lower-than-anticipated excess cash sweeps or a decline in distributions from CPHC." Although unlikely in the near term, S&P could take a positive rating action if: -- GIP Pilot sustains debt to EBITDA below 2.0x and interest coverage above 5.0x; and -- CPHC demonstrates a proven track record of stable distributions to equity owners in the next few years. GIRARDI & KEESE: Designer Sues Erika for Shifty AmEx Usage ---------------------------------------------------------- Joyce E. Cutle of Bloomberg Law reports that Erika Girardi, wife of disbarred and indicted plaintiffs' lawyer Thomas Girardi, is accused in a Tuesday lawsuit along with American Express and the Secret Service of conspiring to destroy a Hollywood costumer by falsely claiming he committed wire fraud. The lawsuit in Los Angeles federal court said Erika Girardi, who also goes by Erika Jayne, falsely accused Christopher Psaila of fraudulently charging $800,000 to $900,000 for costumes at his business, Marcosquared LLC, formerly Marco Marco LLC. The authorized charges on an American Express card that the law firm Girardi Keese issued to Erika Girardi, a "Real Housewives of Beverly Hills" reality show star, only became an issue after November or December 2016, "at a time when her husband and his law firm were in dire financial straits," when the “scheme to maliciously prosecute” Psaila was formed, the lawsuit said. Girardi Keese and Thomas Girardi were forced into involuntary bankruptcy in December 2020. The Girardi Keese bankruptcy trustee sued Erika Girardi and American Express to recover allegedly fraudulent fund transfers from the firm to Girardi's spouse and the card company. Psaila's suit claims Erika Girardi and AmEx falsely told the Secret Service the transactions were unauthorized despite her accepting costumes "designed, created, made, and provided for her performances" in 2015 and 2016 that appeared on the TV show, the filing said. The lawsuit alleges AmEx failed to conduct a "fair or reasonable investigation" before refunding the Girardis $787,118. Girardi allegedly "weaponized the Secret Service to maliciously prosecute" Psaila, the lawsuit said, claiming Thomas Girardi knew the head of the Secret Service in Los Angeles, Robert Savage. Savage and two agents were also named in the suit. The suit also names an AmEx bank investigator, Erika Girardi’s assistant, and her creative director. Claims Denied AmEx in a statement said while "it is our policy to not comment on the specific activity on an individual Card Member's accounts, we followed our regular processes and procedures throughout this investigation as we dealt with law enforcement." "We did not initiate the investigation, nor did we proactively contact law enforcement, and the information law enforcement requested from us was typical in fraud investigations. We did not play any role in the criminal investigation of Mr. Psaila or his business other than responding to inquiries from law enforcement." An attorney for Erika Girardi didn’t immediately respond to an email seeking comment. "As a matter of longstanding policy, the Secret Service does not comment on pending or proposed litigation," spokesperson Alexi Worley said in an emailed comment. The filing seeks at least $18.2 million in general damages and unspecified punitive damages. A related Federal Tort Claims Act administrative claim against the Secret Service seeks $75 million, the lawyers said in a statement announcing the filing. Thomas Girardi is defending federal fraud charges in Chicago and Los Angeles. McLane, Bednarski & Litt, LLP, Stanley I. Greenberg of Los Angeles, and Bruce Bernard Bealke of Chicago represent Psalia. The case is Psalia v. Girardi, C.D. Cal., No. 2:23-cv-07120, filed 8/29/23. 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 HAWKEYE ENTERPRISES: Court OKs Cash Collateral Access Thru Sept 27 ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Eastern District of Missouri, Eastern Division, authorized Hawkeye Enterprises, LLC to use cash collateral on an interim basis in accordance with the budget, through September 27, 2023. The Debtor is indebted to Berkshire Bank, in the approximate amount of $957,000. The Debtor is also indebted to Rocket Capital NY, LLC in the approximate amount of $44,200, QFS Capital LLC in the approximate amount of $18,000, and Funding Metrics, LLC in the approximate amount of $35,000. Additionally, the Debtor may be indebted on a secured basis to EBF Holdings, LLC in the approximate amount of $21,000, American Express in the approximate amount of $18,31, Black Olive Capital LLC in the approximate amount of $96,000, Celtic Bank Corporation in the approximate amount of $94,000, PNC Bank in the approximate amount of $100,000, Forward Financing in the approximate amount of $13,000, and Cucumber Capital, LLC in the approximate amount of $30,000. Berkshire Bank, pre-petition lender to the Debtor, asserts various interests in (including, without limitation, security interests in and liens upon) substantially all of the Debtor's personal property including, without limitation, inventory and accounts receivable, as more particularly described in its loan documents. Further, Berkshire asserts interests in cash collateral including, without limitation, that such cash constitutes proceeds of the Collateral and, therefore, constitutes cash collateral within the meaning of 11 U.S.C. Code Section 363(a). The Debtor is permitted to use cash collateral without approval of the Prepetition Creditors to the extent that such use is necessary to protect the welfare of any animals that are kept on the premises of the Debtor's facilities. The cash collateral will not be used to make payments to (i) professionals, whether or not retained by the bankruptcy estates, including any attorneys' fees and expenses; (ii) other secured creditors; or (iii) pre-petition claims, debts or obligations, except to the extent such claims are contemplated by the Budget and allowed by the Court. As adequate protection, the Prepetition Creditors are granted replacement security interests in, and liens on, all post-Petition Date acquired property of the Debtor's bankruptcy estates that is the same type of property that Prepetition Creditors held a pre-petition interest, lien or security interest to the extent of the validity and priority of such interests, liens, or security interests, if any. To the extent that the Replacement Liens prove inadequate to protect the Prepetition Creditors from a demonstrated diminution in the value of their Collateral positions from the Petition Date, then the Prepetition Creditors will be granted an administrative expense claim under Code Section 503(b) with priority in payment under Code Section 507(b). The Lender Super Priority Claims will be afforded the same priority within the class of Prepetition Creditors as the prepetition liens and security interests of those Prepetition Creditors. In addition to the Replacement Liens and Lender Super Priority Claim, to the extent that the Replacement Liens prove inadequate to protect the Prepetition Creditors from a demonstrated diminution in the value of their Collateral positions from the Petition Date, then Prepetition Creditors will be granted additional liens on all of the Debtor's assets for any diminution in its collateral position from the Petition Date not protected by the Replacement Liens. The Debtor will continue to maintain adequate and sufficient insurance on all its property and assets. A final hearing on the matter is set for September 27, 2023 at 11 a.m. A copy of the court's order and the Debtor's budget is available at https://urlcurt.com/u?l=dyG97X from PacerMonitor.com. The Debtor projects total expenses, on a weekly basis, as follows: $41,050 for the week ending September 10, 2023; and $19,050 for the week ending September 17, 2023. About Hawkeye Enterprises Hawkeye Enterprises, LLC filed Chapter 11 petition (Bankr. E.D. Mo. Case No. 23-42494) on July 17, 2023, with $328,232 in assets and $1,488,755 in liabilities. Robert Moellering, owner, signed the petition. Judge Brian C. Walsh oversees the case. Robert E. Eggmann, Esq., at Carmody MacDonald P.C. is the Debtor's legal counsel. HMONG EDUCATION: S&P Affirms 'BB+' Rating on Lease Revenue Bonds ---------------------------------------------------------------- S&P Global Ratings revised the outlook to stable from negative and affirmed its 'BB+' long-term rating on the St. Paul Housing and Redevelopment Authority, Minn.'s series 2020A and 2016A lease revenue bonds, issued for the Hmong Education Reform Co., on behalf of Hmong College Prep Academy (HCPA). "The outlook revision reflects our opinion of HCPA's successful transition to a new authorizer in June 2022, significant progress involving multiple investigations surrounding an impermissible investment made in 2019, and improved financial performance metrics," said S&P Global Ratings credit analyst David Holmes. HOLIDAY HAM: Wins Interim Cash Collateral Access ------------------------------------------------ The U.S. Bankruptcy Court for the Western District of Tennessee authorized Holiday Ham Holdings, LLC to use cash collateral on an interim in accordance with the budget. Pursuant to a Note and Loan Security Agreement entered into on December 5, 2012, and a First Amendment to Loan and Security Agreement and Other Loan Documents entered into on December 29, 2015, between the Debtor and Pinnacle Bank, the Bank loaned $1.850 million to Jordan Enterprises, LLC. The Bank asserts that the Debtor was truly and justly indebted to Bank, without defense, counterclaim or offset of any kind asserted by Debtor, in the amount of $665,474 that includes principal of $642,277, accrued interest of $13,400, and late fees of $5,382 as of July 7, 2023, and attorney fees of $350, with interest continuing to accrue at the per diem rate of $194. The Bank further asserts that the Debtor's obligations to the Bank are secured by unavoidable, valid and perfected liens and/or security interests in certain assets of the Debtor. The Debtor currently does not have any facts or basis to object to the validity, perfection, or priority of the Bank's lien. The cash collateral includes all of Holiday Ham Holding, LLC's business assets. To further secure the repayment of the Indebtedness a UCC Financing Statement was recorded with the Tennessee Secretary of State as document number 424335603 and extended with the Tennessee Secretary of State as document number 432866053. The Debtor's right to use any cash collateral will immediately terminate upon the occurrence of any one or more of the following: 1. the case is converted to a Chapter 7 or 13 under the Bankruptcy Code or is dismissed; 2. the Debtor or any other party in interest files a motion in the case without the consent of the Bank to use cash collateral or to approve financing pursuant to 11 U.S.C. section 364 that would grant an additional security interest or lien on any Collateral; 3. an order is entered granting relief from the stay to any party other than the Bank as to any of the Property; 4. an order is entered over the objection of the Bank granting a lien on any Collateral or granting an administrative claim in such case that is equal or superior to the administrative claim granted to the Bank pursuant to the Order; 5. the Debtor files a motion, adversary proceeding, or initiates any other court proceedings or takes any other action, other than to enforce the automatic stay provided by 11 U.S.C. section 362 or to enforce the Order, seeking to object to, set aside, avoid, assert defenses to, or contest the Indebtedness, the validity, perfection, priority or enforceability of the Indebtedness, the liens or security interests securing the Indebtedness, or any other claims or liens of the Bank against the Debtor or its assets; 6. this Order is modified without the Bank's consent, is vacated, stayed or is for any reason not binding on the Debtor; 7. the Debtor fails to make the payment provided for in the Order; 8. an Order is entered by the Court under 11 U.S.C. 506(c) without the Bank's consent awarding recovery of any costs and expenses from the Collateral; 9. the Debtor or any other party in interest files a plan of reorganization that purports to affect the Bank's claims, to which plan the Bank has not consented in writing; 10. an order is entered for the sale of any Collateral to which the Bank objects; 11. or the Debtor fails to comply with any provision of the Order. To secure the aggregate amount of all cash collateral used by the Debtor and to secure any diminution in the value of the Bank's interest in its Collateral, the Bank is granted, without need of further act or documentation, a first priority replacement lien and security interest under 11 U.S.C. 361(2) and 363(e), on all of its Collateral and all collateral of the same or similar type. To the extent the liens and security interests granted the Order prove insufficient to secure any diminution in value of the Bank's interest in its Collateral the Bank is granted an administrative priority claim pursuant to 11 U.S.C. Section 507(b) to secure any such diminution in value. Since the filing of the Chapter 11 bankruptcy case, Pinnacle Bank has been paid $175,00 from sale of assets August 11, 2023, and the Bank will amend their claim to reflect such payment. The Debtor will continue to maintain insurance with respect to all Collateral for the purposes and in the amounts maintained by the Debtor in accordance with the requirements of the Debtor's agreements with the Bank. A copy of the order is available at https://urlcurt.com/u?l=csFtmn from PacerMonitor.com. About Holiday Ham Holdings Holiday Ham Holdings, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Tenn. Case No. 23-23313) on July 7, 2023. In the petition signed by Lucius D. Jordan, III, president and managing member, the Debtor disclosed up to $10 million in both assets and liabilities. Judge M. Ruthie Hagan oversees the case. Toni Campbell Parker, Esq., at Law Firm of Toni Campbell Parker, represents the Debtor as legal counsel. Pinnacle Bank, as lender, is represented by Matthew R. Murphy, Esq., at Smythe Huff & Murphy, PC. IBT LOCAL 863: Gets $334M Funding from PBGC to Avert Insolvency --------------------------------------------------------------- Pension Benefit Guaranty Corporation has approved the application submitted to the Special Financial Assistance Program by the Local Union No. 863 I.B. of T. Pension Plan. The plan, based in Mountainside, New Jersey, covers 2,487 participants in the transportation industry. The IBT Local 863 Plan will receive approximately $334 million in special financial assistance, including interest to the expected date of payment to the plan. The plan was projected to become insolvent and run out of money in 2024. Without the SFA Program, the IBT Local 863 Plan would have been required to reduce participants' benefits to the PBGC guarantee level upon plan insolvency, which is roughly 75% below the benefits payable under the terms of the plan. SFA will enable the plan to continue to pay retirement benefits without reduction for many years into the future. "These hard-working Teamsters helped build a better America and now the Biden-Harris administration is working to deliver the secure, dignified retirement they deserve," said Acting Secretary of Labor Julie A. Su. "By providing Special Financial Assistance, the Biden-Harris administration will ensure that these 2,487 workers get the benefits they have earned after a lifetime of hard work and can retire with dignity." The SFA Program was enacted as part of the American Rescue Plan (ARP) Act of 2021. The program provides funding to severely underfunded multiemployer pension plans and will ensure that millions of America's workers, retirees, and their families receive the pension benefits they earned. The SFA Program requires plans to demonstrate eligibility for SFA and to calculate the amount of assistance pursuant to ARP and PBGC's regulations. SFA and earnings thereon must be segregated from other plan assets and may be used only to pay plan benefits and administrative expenses. Plans are not obligated to repay SFA to PBGC. Plans receiving SFA are also subject to certain terms, conditions and reporting requirements, including an annual statement documenting compliance with the terms and conditions. PBGC is authorized to conduct periodic audits of multiemployer plans that receive SFA. As of September 5, 2023, PBGC has approved about $53.4 billion in SFA to plans that cover over 766,000 workers, retirees, and beneficiaries. The SFA Program operates under a final rule, published in the Federal Register on July 8, 2022, which became effective August 8, 2022, and was amended effective January 26, 2023. PBGC protects the retirement security of over 33 million American workers, retirees, and beneficiaries in both single-employer and multiemployer private sector pension plans. The agency's two insurance programs are legally separate and operationally and financially independent. PBGC is directly responsible for the benefits of more than 1.5 million participants and beneficiaries in failed single-employer pension plans. The Single-Employer Program is financed by insurance premiums, investment income, and assets and recoveries from failed single-employer plans. The Multiemployer Program is financed by insurance premiums. Special financial assistance for financially troubled multiemployer plans is financed by general taxpayer monies. INSTANT BRANDS: Executive Bonuses Approved by Court --------------------------------------------------- Amelia Pollard of Bloomberg Law reports that Instant Brands, maker of the Instant Pot pressure cooker and Pyrex glassware, secured court approval on Wednesday, August 30, 2023, to pay four executives incentive bonuses as the company tries to sell itself through bankruptcy. US Bankruptcy Judge David R. Jones approved the bonuses, which are earmarked for as much as $4 million in total, according to court papers. The firm's ad hoc lender group and the Justice Department don't object to the bonuses, company lawyer Brian Resnick said during the hearing. About Instant Brands Instant Brands designs, manufactures and markets a global portfolio of innovative and iconic consumer lifestyle brands: Instant, Pyrex, Corelle, Corningware, Snapware, Chicago Cutlery, ZOID and Visions. Instant Brands Acquisition Holdings Inc. and its affiliates, including Instant Brands LLC, sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 23-90716) on June 12, 2023. Judge David R. Jones oversees the case. In addition, the Company commenced ancillary proceedings in Canada under the Companies' Creditors Arrangement Act (CCAA) seeking recognition of the U.S. Chapter 11 proceedings in Canada. In its Chapter 11 petition, Instant Brands disclosed up to $1 billion in both assets and liabilities. The Debtors tapped Davis Polk & Wardwell, LLP and Haynes and Boone, LLP as bankruptcy counsels; Stikeman Elliott, LLP as Canadian counsel; Guggenheim Securities, LLC as investment banker; and AlixPartners, LLP as restructuring advisor. Adam Hollerbach, a partner and managing director at AlixPartners, serves as the Debtors' chief restructuring officer. The U.S. Trustee for Region 7 appointed an official committee to represent unsecured creditors in the Debtors' Chapter 11 cases. The committee is represented by James P. Muenker, Esq. IRIDIUM SATELLITE: S&P Rates New Credit Facilities 'BB' ------------------------------------------------------- S&P Global Ratings assigned its 'BB' issue-level rating and '2' recovery rating to Iridium Satellite LLC's proposed $1.5 billion term loan B due in 2030 and $100 million revolving credit facility due 2028. The '2' recovery rating indicates its expectation of substantial (70%-90%; rounded estimate: 75%) recovery for lenders in the event of a payment default. The company plans to use the proceeds to repay its term loan maturing in 2026 and related transaction fees. S&P's 'BB-' issuer credit rating and stable outlook on Iridium are unchanged because the proposed transaction will not affect net leverage, which it believes will remain about 3.2x in 2023, relative to our 3x-4x expectation for the rating. ISSUE RATINGS - RECOVERY ANALYSIS Key analytical factors -- S&P's simulated default scenario assumes heightened competition from satellite and terrestrial service providers leads to increased churn, pricing pressure in the nongovernmental business, and limited maritime growth. The decline in operating performance, coupled with the fixed costs associated with operating a satellite network, erode Iridium's cash flow to the point it cannot cover its fixed charges (interest expense, required amortization, and minimum maintenance capital expenditure), leading to a default in 2027. -- S&P values Iridium on a going-concern basis using a 6x multiple of its projected emergence-level EBITDA to reflect its global satellite network and customer relationships. The 6x multiple is in line with multiples S&P uses for most other satellite operators it rates. -- Other default assumptions include that the revolver is 85% drawn at default, the spread on the revolver rises to 5% as Iridium obtains covenant amendments, SOFR of 2.5% at default, and all debt amounts include six months of prepetition interest. Simulated default assumptions -- Simulated year of default: 2027 -- EBITDA at emergence: $215 million -- Implied enterprise valuation multiple: 6x -- Gross enterprise value (EV): $1.3 billion Simplified waterfall -- Net EV (after 5% administrative expenses): $1.3 billion -- Collateral value available to secured debt: $1.2 billion -- Secured first-lien debt: $1.6 billion --Recovery expectations: 70%-90% (rounded estimate: 75%) ITTELLA INTERNATIONAL: Sept. 19 Auction Set ------------------------------------------- Ittella International, LLC and its affiliates asked the U.S. Bankruptcy Court for the Central District of California to approve the sale of substantially all of their assets by an auction. The assets up for sale include: (i) Tattooed Chef, Inc.'s equity interests in its direct subsidiaries, including Myjojo, Inc., New Mexico Food Distributors, Inc., Karsten Tortilla Factory, LLC, BCI Acquisition, Inc. and TTCF-NM Holdings Inc., or indirect subsidiaries including Ittella International, LLC and Ittella's Chef, LLC; (ii) Ittella's Chef, LLC's equity interests in Ittella Italy SRL; and (iii) other assets. The bankruptcy court had previously approved a bidding process governing the sale of the assets. It set a Sept. 12 deadline to name a qualified bidder and to overbid stalking horse bids. The court also scheduled an auction for Sept. 19, at 10:00 a.m. (prevailing Pacific time). The ultimate buyers for the assets have not yet been identified and will only be identified at the conclusion of the auction. Planted Ventures, LLC, an insider, has been identified as the "accepted stalking horse bidder" for Ittella's Chef's equity interests in Ittella Italy SRL and all of the intellectual property owned by Ittella International and its affiliates. As a stalking horse bidder, Planted Ventures sets the price floor for bidding in an auction. Planted Ventures offered to buy the assets for $1.5 million, of which $1 million is allocated to the Italian equity and $500,000 to the intellectual property. There was no other stalking horse bid for the Italian equity and the next highest offer for the intellectual property is a $150,000 offer from Stiebs, LLC. Edward Bidanset, the companies' chief restructuring officer, said the companies are unable to reorganize around continued operations given their current financial condition and market conditions. "As a result, I believe that, given the cessation of the [companies'] business operations, it is in the best interests of the estates and their creditors to sell the assets," Mr. Bidanset said in court papers. Judge Sandra Klein is set to hold a hearing on the proposed sale on Sept. 27. About Ittella International Ittella International, LLC is a supplier of plant-based products based in Paramount, Calif. Ittella International and seven affiliates sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Calif. Lead Case No. 23-14154) on July 2, 2023. In the petition signed by its chief executive officer, Salvatore Galletti, Ittella International reported $10 million to $50 million in both assets and liabilities. Judge Sandra R. Klein oversees the cases. The Debtors tapped David L. Neale, Esq., at Levene, Neale, Bender, Yoo and Golubchik, LLP as bankruptcy counsel; Rutan and Tucker, LLP as their special corporate and SEC counsel; SC&H Group, Inc. as investment banker; and Grant Thornton, LLP as accountant. The U.S. Trustee for Region 16 appointed two separate committees to represent unsecured creditors of Ittella International and its affiliate, New Mexico Food Distributors, Inc. JAMAICAN SPOT: Files Emergency Bid to Use Cash Collateral --------------------------------------------------------- The Jamaican Spot LLC asks the U.S. Bankruptcy Court for the Southern District of Alabama for authority to use cash collateral to meet its payroll and to purchase inventory and supplies needed in the operation of its business. PNC Bank asserts an interest in the cash collateral. The Debtor has no other funds with which to pay the expenses and if the expenses are not paid, the Debtor will be unable to continue its business operation. A copy of the motion is available at https://urlcurt.com/u?l=QCzRXV from PacerMonitor.com. About The Jamaican Spot LLC The Jamaican Spot LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Ala. Case No. 23-12009) on August 31, 2023. In the petition signed by Shanta Moncrieffe, manager, the Debtor disclosed up to $50,000 in assets and up to $100,000 in liabilities. James D. Patterson, Esq., at James Patterson LLC, represents the Debtor as legal counsel. JEWEL STONE: Case Summary & Nine Unsecured Creditors ---------------------------------------------------- Debtor: Jewel Stone Title Insurance Agency, LLC 8250 College Parkway, #103 Fort Myers, FL 33919 Chapter 11 Petition Date: September 7, 2023 Court: United States Bankruptcy Court Middle District of Florida Case No.: 23-01073 Debtor's Counsel: Scott A. Stichter, Esq. STICHTER, RIEDEL, BLAIN & POSTLER, P.A. 110 E. Madison St. Suite 200 Tampa, FL 33602 Tel: (813) 229-0144 Email: sstichter@srbp.com Estimated Assets: $100,000 to $500,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Tim Diesel as president. A copy of the Debtor's list of nine unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/KPLEPZI/Jewel_Stone_Title_Insurance_Agency__flmbke-23-01073__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/KF3FYEI/Jewel_Stone_Title_Insurance_Agency__flmbke-23-01073__0001.0.pdf?mcid=tGE4TAMA LAKEPORT CF: Seeks to Sell Elbert Property for $325,000 ------------------------------------------------------- Lakeport CF, LLC filed a motion with the U.S. Bankruptcy Court for the District of Colorado seeking approval to sell its real property in Elbert County, Colo., and grant utility easements to CORE Electric Cooperative. CORE, a Colorado cooperative association, offered $325,000 for the property. The sale is a private transaction. Lakeport will not entertain or solicit rival offers due to CORE's ability to condemn the property. CORE plans to build and operate an electrical substation and transmission lines servicing not only Lakeport's proposed Planned Unit Development but additional local customers as well. About Lakeport CF Lakeport CF, LLC, a company in Elbert County, Colo., filed Chapter 11 petition (Bankr. D. Colo. Case No. 22-11941) on May 31, 2022, with $10 million to $50 million in both assets and liabilities. Judge Michael E. Romero oversees the case. Jeffrey A. Weinman, Esq., at Allen Vellone Wolf Helfrich & Factor, PC and Fairfield and Woods P.C. serve as the Debtor's bankruptcy counsel and special counsel, respectively. LECLAIRRYAN PLLC: Trimmed Founder Deal for Court Approval --------------------------------------------------------- Andrew Strickler of Law360 reports that a Virginia federal judge who recently shot down an "offensive" settlement between a trustee and a LeClairRyan founder with tax headaches related to the bankrupt firm on Tuesday, August 29, 2023, was set to approve a stripped-down version of the deal, the trustee's counsel has said. About LeClairRyan PLLC Founded in 1988, LeClairRyan PLLC is a national law firm with 385 attorneys, including 160 shareholders, at its peak. The firm represented thousands of clients, including individuals and local, regional, and global businesses. Following massive defections by its attorneys LeClairRyan, members of the firm in July 2019 voted to effect a wind-down of the Debtor's operations. LeClairRyan PLLC sought Chapter 11 protection (Bankr. E.D. Va. Case No. 19-bk-34574) on Sept. 3, 2019, to effect the wind-down of its affairs. In its Chapter 11 petition, the firm listed a range of 200-999 creditors owed between $10 million and $50 million. The firm claims assets of $10 million to $50 million. The Hon. Kevin R Huennekens is the case judge. Richmond attorneys Tyler Brown and Jason Harbour of Hunton Andrews Kurth represented LeClairRyan in the case. Protiviti was the Debtor's financial adviser for the liquidation. The bankruptcy case was converted to a Chapter 7 liquidation on Oct. 24, 20219. Lynn L. Tavenner was named a Chapter 7 trustee, and then Benjamin C. Ackerly, a successor trustee. The Chapter 7 trustee Ackerly's counsel: Tyler P. Brown Hunton Andrews Kurth LLP Tel: 804-788-8200 E-mail: tpbrown@huntonak.com LIPOSOME FORMULATIONS: Taps Michael Jay Berger as Legal Counsel --------------------------------------------------------------- Liposome Formulations, Inc. seeks approval from the U.S. Bankruptcy Court for the Northern District of California to employ the Law Offices of Michael Jay Berger as its legal counsel. The firm's services include: (a) communicating with creditors; (b) reviewing the Debtor's Chapter 11 bankruptcy petition and all supporting schedules; (c) advising the Debtor of its legal rights and obligations in a bankruptcy proceeding; (d) working to bring the Debtor into full compliance with the reporting requirements of the Office of the U.S. Trustee; (e) prepare status reports as required by the court; (f) responding to any motions filed in the Debtor's bankruptcy proceeding; (g) responding to creditor inquiries; (h) reviewing proofs of claim filed in the Debtor's Chapter 11 bankruptcy and object to inappropriate claims; (i) preparing notices of automatic stay in all state court proceedings in which the Debtor is sued; and (j) preparing a Chapter 11 plan of reorganization for the Debtor. The firm will be paid at these rates: Michael Jay Berger, Esq. $595 per hour Sofya Davtyan, Senior Associate Attorney $545 per hour Carolyn M. Afari, Mid-level Associate Attorney $435 per hour Robert Poteete, Mid-level Associate Attorney $435 per hour Angeline Smirnoff, Associate Attorney $395 per hour Senior Paralegals and Law Clerks $250 per hour Bankruptcy Paralegals $200 per hour In addition, the firm will receive reimbursement for out-of-pocket expenses incurred. The firm received a retainer in the amount of $20,000. Michael Jay Berger, Esq., the sole owner of the Law Offices of Michael Jay Berger, 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 Jay Berger, Esq. Law Offices of Michael Jay Berger 9454 Wilshire Blvd., 6th Floor Beverly Hills, CA 90212-2929 Telephone: (310) 271-6223 Facsimile: (310) 271-9805 Email: michael.berger@bankruptcypower.com About Liposome Formulations Liposome Formulations, Inc. sought protection fore relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Cal. Case No. 23-30530) on August 5, 2023, listing $100,001 to $500,000 in both assets and liabilities. Michael Jay Berger at the Law Offices Of Michael Jay Berger represents the Debtor as counsel. MACHINE TOOL: Court OKs Cash Collateral Access Thru Sept 21 ----------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Indiana, Indianapolis Division, authorized Machine Tool Service, LLC to use cash collateral on an interim basis in accordance with the budget, through September 21, 2023. As previously reported by the Troubled Company Reporter, the Debtor urgently needs working capital to continue maintain the utilities and store the equipment until a potential court approved sale of the personal property can be consummated. The use of said funds will be needed to pay current utilities, to maintain insurance upon the real and personal property of the Debtor, and to pay, with further Court approval, any pre-petition priority ad valorem real estate tax claims in order to avoid any tax sale of the real estate. Prior to the Commencement Date, the Debtor's liquidity needs were met primarily through the daily operation of the business of the Debtor and various financing options offered by trade vendors, personal cash, and internet lenders. The Debtor believes that First Financial Bank is the superior, properly perfected, secured creditor having an interest in substantially all of its personal property assets, but further believes Kapitus LLC claim an interest in cash collateral by virtue of a UCC-1 financing statement. The Debtor believes that the value of its cash collateral, which comprises a substantial part of the value of its assets, is greater than the combined claims of First Financial Bank and Kapitus LLC, and that all subordinate creditors have no interest in cash collateral. The only other secured creditor is the former stockholder, Forrest Perry, who sold his stock to the Debtor shareholder, Samuel G. Hoar, and holds the first mortgage on the real estate owned by the corporation as security. The Debtor has reasonable cause to believe that receivables may be tendered and able to be negotiated in the approximate sum of $8000 within the next 7 working days, and requests authority to deposit said sums in the Debtor in-Possession account for use in accordance with the orders of this court. Additionally, the Debtor is awaiting the receipt of its filed claim with the IRS for recovery of the ERC credit. This tax credit is scheduled to be electronically deposited into the account maintained at First Financial Bank and the Debtor requests that such cash collateral be included in the order and that the ERC funds be authorized to be deposited into the DIP account for application to the court approved Chapter 11 Plan and any other orders of the court. These events constitute an "Event of Default": a. Failure to comply with any of the adequate protection or reporting obligations set forth therein; b. Failure to comply with any terms of the Interim Order; c. The Debtor makes any payment not set forth in the Cash Collateral Budget, except that, as necessary lo maintain the business operations, the Debtor may exceed the budgeted expenditures in a particular category only to the extent the Debtor limits or reduces its expenditures in other categories, so the resulting effect is that the total expenditures during the budget period do not exceed 110% of the total expenses outlined in the Cash Collateral Budget; and/or d. Dismissal or conversion of this case or appointment of a Chapter 11 trustee or examiner. A copy of the court's order and the Debtor's budget is available at https://urlcurt.com/u?l=hIIXq7 from PacerMonitor.com. The Debtor projects $22,800 in total income and $7,788 in total expenses for the period from September to November 2023. About Machine Tool Service, LLC Machine Tool Service, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Ind. Case No. 23-80337-JJG-11 ) on August 24, 2023. In the petition signed by Samuel G. Hoar, president, the Debtor disclosed up to $1 million in both assets and liabilities. Judge Jeffrey J. Graham oversees the case. Richard Lorenz, Esq., at Hickam & Lorenz, P.C., represents the Debtor as legal counsel. MACHINE TOOL: Judy Wolf Weiker Named Subchapter V Trustee --------------------------------------------------------- The U.S. Trustee for Region 10 appointed Judy Wolf Weiker of Manewitz Weiker Associates, LLC as Subchapter V trustee for Machine Tool Service Inc. Ms. Weiker 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. Weiker declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Judy Wolf Weiker P.O. Box 40185 Indianapolis, IN 46240 Phone: 973-768-2735 Email: JWWtrustee@manewitzweiker.com About Machine Tool Service Machine Tool Service, Inc. filed Chapter 11 petition (Bankr. S.D. Ind. Case No. 23-80337) on Aug. 24, 2023, with $500,001 to $1 million in both assets and liabilities. Judge Jeffrey J. Graham oversees the case. Richard W. Lorenz, Esq., at Hickam & Lorenz, P.C. represents the Debtor as legal counsel. MAD SCIENCE: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Mad Science Machining, LLC 2004 Airport Road Spring, TX 77391-3201 Business Description: Mad Science is a full service 5 Axis/ Milling/Swiss/Screw/Small Turning Precision CNC Machine Shop. Chapter 11 Petition Date: September 7, 2023 Court: United States Bankruptcy Court Southern District of Texas Case No.: 23-33492 Judge: Hon. Jeffrey P. Norman Debtor's Counsel: Robert C. Lane, Esq. THE LANE LAW FIRM 6200 Savoy Dr Ste 1150 Houston TX 77036-3369 Tel: (713) 595-8200 Fax: (713) 595-8201 Email: notifications@lanelaw.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Ryan Madsen as president. A full-text copy of the petition containing, among other items, a list of the Debtor's 18 unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/LXVCSOQ/Mad_Science_Machining_LLC__txsbke-23-33492__0001.0.pdf?mcid=tGE4TAMA MALLINCKRODT PLC: Revised Deal Is Best Option, Says Trust --------------------------------------------------------- Jonathan Randles of Bloomberg Law reports that representatives for opioid victims said they agreed to forgo the remaining $1 billion of payments they're owed in a revised deal with Mallinckrodt Plc to ensure they at least get some of the funds the bankrupt drugmaker had promised injury claimants last 2022. David Molton, a lawyer representing the trust that agreed to the reduction, said the trustees' decision to allow Mallickrodt to cut victims' payments "was particularly gruesome." But the drugmaker's business has declined, forcing it at at the end of August 2023 into Chapter 11 bankruptcy for the second time in three years. And the trust was at a disadvantage in negotiating because it is an unsecured creditor, meaning it can only be paid after secured creditors like banks are paid. Mallinckrodt has about $3.5 billion of secured debt. The trustees agreed to a final payment of $250 million, believing the deal they struck with Mallinckrodt was the best option available to them, Molton said. The company reached the agreement with opioid victims and other creditors earlier this month, according to court documents. The $250 million opioid payment is part of Mallinckrod's pre-negotiated bankrutpcy. Its total payments to the victims were $700 million, following a $450 million payment in June 2022. The company had promised in its first bankruptcy to pay opioid claimants about $1.7 billion. "It is an understatement for me to say this is a very bittersweet day for the trustees," Molton said. Mallinckrodt's restructuring deal will also trim about $1.9 billion in long-term debt and has broad support from its lenders. The company intends to exit its second Chapter 11 case in November. About Mallinckrodt PLC Mallinckrodt -- http://www.mallinckrodt.com/-- is a global business consisting of multiple wholly-owned subsidiaries that develop, manufacture, market and distribute specialty pharmaceutical products and therapies. The company's Specialty Brands reportable segment's areas of focus include autoimmune and rare diseases in specialty areas like neurology, rheumatology, nephrology, pulmonology and ophthalmology; immunotherapy and neonatal respiratory critical care therapies; analgesics; and gastrointestinal products. Its Specialty Generics reportable segment includes specialty generic drugs and active pharmaceutical ingredients. On Oct. 12, 2020, Mallinckrodt plc and certain of its affiliates sought Chapter 11 protection in Delaware (Bankr. D. Del. Lead Case No. 20-12522) to seek approval of a restructuring that would reduce total debt by $1.3 billion and resolve opioid-related claims against them. Mallinckrodt plc disclosed $9,584,626,122 in assets and $8,647,811,427 in liabilities as of Sept. 25, 2020. Judge John T. Dorsey oversees the cases. The Debtors tapped Latham & Watkins, LLP and Richards, Layton & Finger, P.A. as their bankruptcy counsel; Arthur Cox and Wachtell, Lipton, Rosen & Katz as corporate and finance counsel; Ropes & Gray, LLP as litigation counsel; Torys, LLP as CCAA counsel; Guggenheim Securities, LLC as investment banker; and AlixPartners, LLP, as restructuring advisor. Prime Clerk, LLC is the claims agent. The official committee of unsecured creditors retained Cooley, LLP, as its legal counsel; Robinson & Cole, LLP as co-counsel; and Dundon Advisers, LLC as financial advisor. The official committee of opioid-related claimants tapped Akin Gump Strauss Hauer & Feld, LLP as its lead counsel; Cole Schotz as Delaware co-counsel; Province, Inc. as financial advisor; and Jefferies, LLC as investment banker. * * * Mallinckrodt in mid-June 2022 successfully completed its reorganization process, emerged from Chapter 11 and completed the Irish Examinership proceedings. The company said the restructuring strengthens the Company's balance sheet, reduces its total debt by approximately $1.3 billion and enables it to move forward with more than $250 million in cash and cash equivalents on hand. The Plan and Scheme include key legal settlements that resolve opioid claims brought against the Company and litigation matters involving Acthar Gel, among other claims, and provides for significant equitization of the Company's guaranteed unsecured notes. Mallinckrodt Plc said in a regulatory filing in early June 2023 that it was considering a second bankruptcy filing and other options after its lenders raised concerns over an upcoming $200 million payment related to opioid-related litigation. About Mallinckrodt PLC Mallinckrodt -- http://www.mallinckrodt.com/-- is a global business consisting of multiple wholly-owned subsidiaries that develop, manufacture, market and distribute specialty pharmaceutical products and therapies. The company's Specialty Brands reportable segment's areas of focus include autoimmune and rare diseases in specialty areas like neurology, rheumatology, nephrology, pulmonology and ophthalmology; immunotherapy and neonatal respiratory critical care therapies; analgesics; and gastrointestinal products. Its Specialty Generics reportable segment includes specialty generic drugs and active pharmaceutical ingredients. On Oct. 12, 2020, Mallinckrodt plc and certain of its affiliates sought Chapter 11 protection in Delaware (Bankr. D. Del. Lead Case No. 20-12522) to seek approval of a restructuring that would reduce total debt by $1.3 billion and resolve opioid-related claims against them. Mallinckrodt in mid-June 2022 successfully completed its reorganization process, emerged from Chapter 11 and completed the Irish Examinership proceedings. Mallinckrodt Plc said in a regulatory filing in early June 2023 that it was considering a second bankruptcy filing and other options after its lenders raised concerns over an upcoming $200 million payment related to opioid-related litigation. Mallinckrodt plc and certain of its affiliates again sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 23-11258) on August 28, 2023. Mallinckrodt plc disclosed $5,106,900,000 in assets and $3,512,000,000 in liabilities as of June 30, 2023. Judge John T. Dorsey oversees the new cases. In the prior Chapter 11 cases, the Debtors tapped Latham & Watkins, LLP and Richards, Layton & Finger, P.A. as their bankruptcy counsel; Arthur Cox and Wachtell, Lipton, Rosen & Katz as corporate and finance counsel; Ropes & Gray, LLP as litigation counsel; Torys, LLP as CCAA counsel; Guggenheim Securities, LLC as investment banker; and AlixPartners, LLP, as restructuring advisor. In the new Chapter 11 cases, The Debtors tapped Latham & Watkins, LLP and Richards, Layton & Finger, P.A., as their bankruptcy counsel; Arthur Cox and Wachtell, Lipton, Rosen & Katz as corporate and finance counsel; Guggenheim Securities, LLC as investment banker; and AlixPartners, LLP, as restructuring advisor. Kroll is the claims agent. MINERVA RESOURCES: Court Confirms Plan -------------------------------------- Judge Christopher Lopez has entered an order approving the Disclosure Statement and confirming the Chapter 11 Plan of Minerva Resources, LLC and Cronus Mineral Holdings, LLC. The deemed consolidation solely for purposes of voting and determining distributions under the Plan, as described more particularly in Article XI.A of the Plan, is approved. The Debtors submitted a Combined Disclosure Statement and Joint Plan of Liquidation. Minerva was formed effective as of January 1, 2021, for the purpose of owning nonoperated working interests in various oil and gas assets. The owners of several non-operated assets contributed those assets to the newly formed Minerva to create a shared pool of assets. As agreed by the members, the allocation of equity interests in Minerva was based on the original cost basis of the assets each member contributed. EnergyNet.com, LLC, the sale broker, ran a marketing and sales process for substantially all of the Debtors' assets which resulted in a high bid of $13 million. The Debtors spent more than six weeks negotiating with the high bidder. Ultimately, the high bidder withdrew its bid and did not move forward with a transaction. The other bidders for the Debtors' assets either no longer had an interest in acquiring the Debtors' assets or reduced their bid to an amount that the CRO believed did not reflect fair value for the Debtors' assets. On April 21, 2023, an Amended Order Certifying Class and Final Approval of Settlement was entered in the State Court Lawsuit (the "Class Action Settlement"). The terms of the Class Action Settlement include, among other things, (i) creation of the "PM Liquidating Trust," (ii) appointment of Tre Black as the PM Liquidating Trustee, (iii) the assignment of all PetroRock assets to the PM Liquidating Trust, and (iv) subject to the right to opt out, each class member assigned its claims against the Debtors (i.e. the Claims filed in these Chapter 11 Cases) to the PM Liquidating Trust. A total of 64 parties opted out the Class Action Settlement. Accordingly, all other Investor Claims were assigned to the PM Liquidating Trust. As approved by the Disclosure Statement Order, the PM Liquidating Trust shall cast a master ballot as the assignee of all Investor Claims except for the 64 opt out parties who will each receive a Class 2 ballot. Under the Plan, Class 2 General Unsecured Claims are impaired. Holders of Allowed General Unsecured Claims will receive a pro rata Distribution of Liquidating Debtor Cash. Creditors will recover 3% to 6% of their claims. This range of recovery assumes total Allowed General Unsecured Claims of approximately $250 million and Cash available for distribution to the Holders of General Unsecured Claims of approximately $9 million for the low estimate and $17 million for the high estimate. "Liquidating Debtor Cash" means (i) any remaining funds in the Professional Fee Account after the payment of Allowed Professional Fee Claims, (ii) any amounts remaining in the Claims Reserve after the payment of Allowed Administrative Claims (other than Professional Fee Claims), statutory fees, (iii) any amounts remaining in the Disputed General Unsecured Claims Reserve following the payment of amounts reserved therein on account of Disputed General Unsecured Claims; (iv) any amounts remaining in the Indemnity Reserve following payment of indemnity obligations or, if no Holders of Class 2 Claims opt out of the release, then all of the Indemnity Reserve shall be Liquidating Debtor Case, and (v) any other Cash held by the Debtors or the Plan Agent, net of the Operating Reserve, including the proceeds of any post-confirmation sales of assets. Following the Effective Date, the Debtors will become the Liquidating Debtors, and the Liquidating Debtors will be managed by Drew McManigle, the current Chief Restructuring Officer of the Debtors, as the Plan Agent. The Plan Agent will be responsible for taking the necessary and appropriate actions to liquidate the remaining assets of the Debtors' Estates, make distributions to holders of Allowed Claims, and to proceed with an orderly, expeditious, and efficient wind-down of the Debtors' Estates in accordance with the terms of the Plan. Counsel to the Debtors: Joshua W. Wolfshohl, Esq. Aaron J. Power, Esq. PORTER HEDGES LLP 1000 Main Street, 36th Floor Houston, TX 77002 Telephone: (713) 226-6600 Facsimile: (713) 226-6628 E-mail: jwolfshohl@porterhedges.com apower@porterhedges.com A copy of the Order dated August 23, 2023, is available at https://tinyurl.ph/JxMIN from PacerMonitor.com. About Minerva Resources Minerva Resources LLC was formed for the purpose of owning non-operated working interests in various oil and gas assets. Cronus Mineral Holdings, LLC was formed for the purpose of holding certain overriding royalty interests in oil and gas properties. Cronus is also one of the owners of the company that manages Minerva. Minerva Resources and affiliate Cronus Mineral Holdings sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Texas Lead Case No. 22-32291) on Aug. 11, 2022. At the time of the filing, Minerva Resources listed as much as $50 million in both assets and liabilities while Cronus Mineral Holdings listed up to $1 million in assets and up to $50,000 in liabilities. Judge Christopher M. Lopez oversees the cases. The Debtors tapped Porter Hedges, LLP as bankruptcy counsel, Ahmad Zavitsanos & Mensing, PC as special counsel, and MACCO Restructuring Group, LLC as financial advisor. Drew McManigle, managing director at MACCO, serves as the Debtors' chief restructuring officer. EnergyNet.com, LLC has been tapped to preform sales brokerage and consulting services for the disposition of the Debtors' assets. MINSHEW BROTHERS: Taps Michael Jay Berger as Legal Counsel ---------------------------------------------------------- Minshew Brothers Steel Construction, Inc. seeks approval from the U.S. Bankruptcy Court for the Southern District of California to employ the Law Offices of Michael Jay Berger as its legal counsel. The firm's services include: (a) communicating with creditors; (b) reviewing the Debtor's Chapter 11 bankruptcy petition and all supporting schedules; (c) advising the Debtor of its legal rights and obligations in a bankruptcy proceeding; (d) working to bring the Debtor into full compliance with the reporting requirements of the Office of the U.S. Trustee; (e) prepare status reports as required by the court; (f) responding to any motions filed in the Debtor's bankruptcy proceeding; (g) responding to creditor inquiries; (h) reviewing proofs of claim filed in the Debtor's Chapter 11 bankruptcy and object to inappropriate claims; (i) preparing notices of automatic stay in all state court proceedings in which the Debtor is sued; and (j) preparing a Chapter 11 plan of reorganization for the Debtor. The firm will be paid at these rates: Michael Jay Berger, Esq. $595 per hour Sofya Davtyan, Senior Associate Attorney $545 per hour Carolyn M. Afari, Mid-level Associate Attorney $435 per hour Robert Poteete, Mid-level Associate Attorney $435 per hour Angeline Smirnoff, Associate Attorney $395 per hour Senior Paralegals and Law Clerks $250 per hour Bankruptcy Paralegals $200 per hour In addition, the firm will receive reimbursement for out-of-pocket expenses incurred. The firm received a retainer in the amount of $20,000. Michael Jay Berger, Esq., the sole owner of the Law Offices of Michael Jay Berger, 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 Jay Berger, Esq. LAW OFFICES OF MICHAEL JAY BERGER 9454 Wilshire Blvd., 6th Floor Beverly Hills, CA 90212-2929 Telephone: (310) 271-6223 Facsimile: (310) 271-9805 Email: michael.berger@bankruptcypower.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. MISS UNIVERSE: Allays Concerns Over Liquidity, Bond Payments ------------------------------------------------------------ Bangkok Post reports that JKN Global Group Plc (JKN), owner of Miss Universe Organization, insists its finances and liquidity remain sound, saying none of the next bond interest payments will be missed and the company is on track to meet its revenue target of more than THB3 billion this year. "The bond payment rescheduling was mainly caused by a liquidity mismatch and a lack of funding sources," chief executive and managing director Jakkaphong Jakrajutatip told a briefing on Sept. 1, referring to the announcement on Aug. 31 that JKN cannot fully pay THB609 million worth of debentures due on Sept. 1. In a filing to the Stock Exchange of Thailand (SET), the owner of the Miss Universe Organization (MUO) said it would pay THB156.6 million, consisting of THB146.62 million of principal and 9.98 million in interest, on Sept. 1, Bangkok Post relates. The payment accounts for 26% of the total, leaving an outstanding balance of THB443 million on the JKN239A debentures. "We have cash of THB156.6 million for the bond payment. For those who will be paid later, they will receive interest for the delay and Asia Plus Securities, the bondholder representative, will contact them by Sept 11 for more details," the report quotes Ms Jakkaphong as saying. JKN239A is the first tranche of JKN's seven series of bonds worth a combined THB3.36 billion. Bangkok Post says the next interest payment is due on Sept. 11, followed by Oct. 20 and Nov. 10, 13, 15 and 24. The other six tranches of bonds are worth THB300 million, THB578.6 million, THB400 million, THB800 million, THB525 million and THB156.6 million, with maturity dates in 2024 and 2025. "All of the next bond interest payments remain intact. We are looking at various sources of funding, with backup plans in place," said Ms Jakkaphong. Hosting the 72nd Miss Universe pageant in the fourth quarter should allow JKN to achieve its 2023 revenue target, she said. According to Bangkok Post, the content distributor and media buying company posted revenue of THB1.5 billion in the first six months of this year, up 51% year-on-year, with net profit growing 33% to THB102 million. "In the second half, we expect a significant growth of revenue thanks to the expansion of our MUO business of related products and services," said Ms. Jakkaphong. JKN is introducing drinks as well as skincare and spa products. The company also diversified to the tour business, which is expected to launch in the fourth quarter. According to the report, Yuanta Securities said JKN's revenue in the first half was below its forecast, prompting Yuanta to downgrade its 2023 target. Moreover, expansion of the MUO business and diversification requires a significant amount of money, potentially affecting JKN's liquidity, said the brokerage. JKN expects to gain more revenue from the pageant business in El Salvador, projected at THB566 million in the second half, up from THB230 million in the first six months, Bangkok Post adds. About JKN Global JKN Global Group PCL (BKK:JKN) -- https://jknglobalgroup.com/-- together with its subsidiaries, engages in content distribution business in Thailand. It operates through five segments: Sales of Program Rights, Advertising Services, Sale of Products, Miss Universe License Management Business, and Other Business. The company is involved in the distribution of contents of the movies, series, and documentaries; and production and distribution of non-alcoholic beverages. It also provides advertising services; offers television stations; engages in the manufacture and distribution of health, beauty, and consumer products; and produces and distributes television programs that granting the copyright to the Miss Universe pageant and relating to the Miss Universe pageant's activities. In addition, the company offers studio leasing, costume rental, and artist management services, as well as organizes events; and retail sale through mail order, television, radio, and telephone. It also exports its products. The company was formerly known as JKN Global Media Public Company Limited and changed its name to JKN Global Group Public Company Limited in May 2022. MISS UNIVERSE: Partially Pay Bond Interest and Principal Due Sept 1 ------------------------------------------------------------------- JKN Global Group Public Company Limited, owner of Miss Universe Organization, announced on Aug. 31 that according to the Debentures of JKN Global Group Public Company Limited No. 2/2563 Due B.E. 2023 ("JKN239A Debentures"), the maturity date of the JKN239A Debenture is on September 1, 2023, having the total amount of principal and interest of THB609,981,369.86. However, the Company has in encountered challenges effecting the full repayment of the principal and interest to the debenture holderson the prescribed maturity date as the financial liquidity management of the Company is not in line with the expected forecast. In this light, the Company has considered various sources of funding, however, the negotiations with relevant partners have failed to reach outcomes in line with Company's expectations. The negotiations reached a negative conclusion during a period which occurred in proximity to the maturity date of the JKN239A Debentures, causing the Company to reevaluate the repayment plan and the management of the Company's financial liquidity for the benefit of the Company and all involved parties. However, the Company is prepared to effect a partial repayment consisting of THB148,050,000 in principal and THB9,981,369.86 in interest, totaling THB158,031,369.86 on the maturity date (September 1, 2023). This transaction will leave an outstanding balance of THB451,950,000. Therefore, this event diverges from the terms and conditions of the rights and obligations of the debenture issuer and debenture holders for the Debentures of JKN Global Media Public Company Limited No. 2/2563 Due B.E. 2023, in which the debenture issuer has the right to redeem before maturity pursuant to the Medium Term Note Program 2020. The maximum for the debenture's loan is at THB2,500,000,000 on a revolving basis (which includes the increase in the offering amount (if any) as further disclosed in 69-SupplementForm) ("Terms of Rights). In this regard, the abovementioned event has not obliged the Company to immediately pay debts under the JKN239A Debentures. The Terms of Rights prescribes that, in the event of default of debt repayment under such debentures, the procedure shall be executed in accordance with the Terms of Rights including; (1) the exercise of discretion by the debenture holders' representative to demand repayment of debts under JKN239A Debentures by the Company; (2) the written petition from one or multiple debenture holder(s) holding debenture or collectively hold debentures of not less than 50 percent of the total unredeemed debentures, as received by debenture holders' representative; or (3) the receipt of resolution of the meeting of debenture holders, formally declaring the Company in default and requiring the immediate maturity of the debentures, as received by debenture holders' representative. To redress this situation, the Company has prepared a debt repayment plan for JKN239A Debentures which shall be presented to the meeting of JKN239A Debenturesholders, which the Company has scheduled for September 29, 2023, for approval to: (1) the debenture principal and interest repayment plan, the amendment to the Terms of Rights, including the amendment of any other relevant documents; and (2) a formal request for a waiver to regarding the prevailing default in principal and interest repayment as an exception to the event of default under the purview of the Terms of Rights,and a proposal of conditions requisite to forestall the immediate debenture repayment (Call Default). In the event of approval by the meeting of debenture holders, the Company is within firm believe in its capacity to uphold the repayment plan pertaining to principal and interest obligations according to the prospective plan. The Company does not adopt a lax stance in relation to the default pertaining to the repayment of principal, and the Company confirms and reiterates its commitment underpinned by unwavering trust, to the irrevocable intention of effecting the complete repayment of both principal and interest attached to the JKN239A Debenture, alongside any other debentures issued by the Company. The Company is considering all terms and conditions of the rights and obligations of the debenture issuer and debenture holders, including the terms under the financial agreement or any other relevant agreements. The Company is committed to subsequently notifying you of the resolution of JKN239A debenture holders' meeting, including the evaluation of the consequential implications of the aforementioned resolution. About JKN Global JKN Global Group PCL (BKK:JKN) -- https://jknglobalgroup.com/-- together with its subsidiaries, engages in content distribution business in Thailand. It operates through five segments: Sales of Program Rights, Advertising Services, Sale of Products, Miss Universe License Management Business, and Other Business. The company is involved in the distribution of contents of the movies, series, and documentaries; and production and distribution of non-alcoholic beverages. It also provides advertising services; offers television stations; engages in the manufacture and distribution of health, beauty, and consumer products; and produces and distributes television programs that granting the copyright to the Miss Universe pageant and relating to the Miss Universe pageant's activities. In addition, the company offers studio leasing, costume rental, and artist management services, as well as organizes events; and retail sale through mail order, television, radio, and telephone. It also exports its products. The company was formerly known as JKN Global Media Public Company Limited and changed its name to JKN Global Group Public Company Limited in May 2022. MISS UNIVERSE: Shares Plunge as Debt Holders Demand Payment ----------------------------------------------------------- Bangkok Post reports that shares of JKN Global Group plummeted by more than 8% on Sept. 6 after representatives of the company's debenture holders demanded cross-defaults from the SET-listed owner of Miss Universe Organization (MUO) to repay debts within 30 days. In a filing to the Stock Exchange of Thailand (SET), JKN said it received letters from Asia Plus Securities (ASPS) and Daol Securities (Thailand), both of which are representatives of the company's six tranches of debentures, according to Bangkok Post. In a letter dated Sept. 4, ASPS said it required JKN to pay the total outstanding principal plus interest for JKN239A debenture within a specific period, after the company defaulted on payment of the debentures due on Aug. 31. JKN, which bought MUO for US$20 million last year, informed the SET on Aug. 30 it could not fully pay THB610 million worth of bond principal and interest due on Sept 1. Bangkok Post says the company called a meeting of bondholders later this month to seek their approval for the payment delay. In another letter, ASPS noted a cross-default of JKN246A debentures. "The company is required to clarify relevant solutions to the debenture holder representative by Sept. 8 and proceed with such action within 30 days from Sept. 1," said the filing. Bangkok Post relates that Daol Securities also inquired about solutions for the default of the JKN239A debenture, and notified a cross-default on JKN243A, JKN24OA, JKN24NA, JKN252A, and JKN255A debentures. In a filing, JKN chief executive and managing director Jakkaphong Jakrajutatip insisted bond repayment rescheduling "shall not be considered a default," Bangkok Post relays. According to the report, the company plans to convene a debenture holders' meeting for JKN239A debentures on Sept. 27 to consider a debt repayment plan. In addition, the company plans to hold a debenture holders' meeting for the other debentures within the period specified by the contracts. "The prospective meetings are intended to seek waivers for default, to ensure that any associated events will not be considered a default, and to seek waivers for exercising of rights to call for immediate debt repayment of relevant debentures, or call default," Bangkok Post quotes Ms Jakkaphong as saying. The company confirms its commitment to complete repayment of both principal and interest attached to all debentures, she said. About JKN Global JKN Global Group PCL (BKK:JKN) -- https://jknglobalgroup.com/-- together with its subsidiaries, engages in content distribution business in Thailand. It operates through five segments: Sales of Program Rights, Advertising Services, Sale of Products, Miss Universe License Management Business, and Other Business. The company is involved in the distribution of contents of the movies, series, and documentaries; and production and distribution of non-alcoholic beverages. It also provides advertising services; offers television stations; engages in the manufacture and distribution of health, beauty, and consumer products; and produces and distributes television programs that granting the copyright to the Miss Universe pageant and relating to the Miss Universe pageant's activities. In addition, the company offers studio leasing, costume rental, and artist management services, as well as organizes events; and retail sale through mail order, television, radio, and telephone. It also exports its products. The company was formerly known as JKN Global Media Public Company Limited and changed its name to JKN Global Group Public Company Limited in May 2022. MITCHELL GOLD: Case Summary & 30 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: The Mitchell Gold Co., LLC 135 One Comfortable Place Taylorsville NC 28681 Business Description: The Company produces and markets home furnishing products, including sofas, desks, room dividers, tables, rugs, bed linens, lighting products, and accessories. Chapter 11 Petition Date: September 6, 2023 Court: United States Bankruptcy Court District of Delaware Case No.: 23-11385 Judge: Hon. Laurie Selber Silverstein Debtor's Counsel: Robert J. Dehney, Esq. MORRIS, NICHOLS, ARSHT & TUNNELL LLP 1201 N. Market Street Wilmington DE 19801 Tel: 302-358-9200 Email: rdehney@morrisnichols.com Debtor's Corporate Counsel: ROSE LAW FIRM, A PROFESSIONAL CORPORATION 120 East Fourth Street Little Rock, Arkansas, 72201 Debtor's Special Litigation Counsel: LOWENSTEIN SANDLER One Lowenstein Drive Roseland, New Jersey, 07068 Debtor's Financial Advisor & Consultant: RIVERON RTS, LLC 2515 McKinney Ave., Suite 1200, Dallas, TX 75201 Debtor's Financial Advisor & Consultant: STUMP & COMPANY 2101 Rexford Road-Suite – Suite 134E Charlotte, North Carolina 28211 Estimated Assets: $10 million to $50 million Estimated Liabilities: $10 million to $50 million The petition was signed by David Rogalski as chief financial officer. A full-text copy of the petition is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/TOXGRPY/The_Mitchell_Gold_Co_LLC__debke-23-11385__0001.0.pdf?mcid=tGE4TAMA List of Debtor's 30 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount 1. Transportation Insight Trade Debt $3,917,554 P.O. Box 890702 Charlotte, NC 28289 2. Nahan Printing, Inc. Trade Debt $554,589 P.O. Box 697 Saint Cloud, MN 56302-0697 3. Ryder Last Mile, Inc. Trade Debt $490,940 P.O. Box 854846 Minneapolis, MN 55485-4846 4. Need It Now Trade Debt $490,306 98 Alco Place Baltimore, MD 21227 5. Cigna Trade Debt $419,864 P.O. Box 644546 Pittsburgh, PA 15264-4546 6. Interstate Foam & Supply Inc. Trade Debt $385,843 P.O. Box 338 Conover, NC 28613 7. Cylindo Trade Debt $316,032 87 Summer St., 2nd Floor Boston, MA 02110 8. Danao Living (LK Design Inc.) Trade Debt $303,701 13430 N. Scottsdale Rd. #108 Scottsdale, AZ 85254 9. Carpenter Trade Debt $297,555 P.O. Box 75252 Charlotte, NC 28275 10. J.B. Hunt Trade Debt $284,381 150 Meadowlands Parkway 4th Floor Secaucus, NJ 07094 11. Global Response Trade Debt $284,344 777 S. State Rd. 7 Margate, FL 33068 12. Moore & Giles Trade Debt $277,984 P.O. Box 670 Forest, VA 24551 13. Fenom Digital LLC Trade Debt $238,565 20 Forrest Ave. Rumson, NJ 07760 14. Healthstat Inc. Trade Debt $218,083 Dept Ch 18165 Palatine, IL 60055 15. Ideal Frames d/b/a Ideal Frame Trade Debt $184,092 P.O. Box 935 Taylorsville, NC 28681 16. Carolina Casting Inc. Trade Debt $175,206 P.O. Box 7091 High Point, NC 27264 17. Hudson Valley Lighting Group Trade Debt $173,758 151 Airport Drive Wappinger Falls, NY 12590 18. Locke (HK) Company Limited Trade Debt $167,756 Lot L_CN, D9 Street, My Phuoc Industrial Park, Thoi Hoa Ward, Ben Cat Town, Binh Duong Province, Vietnam 19. Ramsey’s Finishing Inc. Trade Debt $166,361 3060 Main Ave. SE Hickory, NC 28602 20. Kravet Inc. Trade Debt $153,616 P.O. Box 550 Hauppauge, NY 11788 21. Queen Transportation LLC Trade Debt $153,272 P.O. Box 2371 Catawba, NC 28602 22. Hilco Merchant Resources Trade Debt $152,362 5 Revere Dr., Ste 206 Northbrook, IL 60062 23. Harlee Packaging Components Trade Debt $139,509 2715 Campground Road Granite Falls, NC 28630 24. Surya Carpet Inc. Trade Debt $138,026 P.O. Box 896604 Charlotte, NC 28289-6604 25. Stone & Leigh Trade Debt $136,161 d/b/a Stone & Leigh Upholstery 1020 North Green St. Morganton, NC 28655 26. Framewright Inc. Trade Debt $136,146 P.O. Box 1390 Conover, NC 28613 27. Phuc Thang Fine Furniture Trade Debt $135,657 8, Street No. 22 Song Than 2 Industrial Park Di An, Bing Duong Province Vietnam 28. Global Textile Alliance Inc. Trade Debt $129,274 2361 Holiday Loop Road Reidsville, NC 27320 29. Content Square Trade Debt $125,535 5 Boulevard De La Madeleine 75001 Paris, France 30. H. Nicholas & Co. Joint Stock Trade Debt $123,401 Company Parcel land #462, Map sheet #49, Quarter 8, Uyen Hung Ward, Tan Uyen City, Binh Duong Province, Vietnam MONICATTI AUTO: Deborah Fish Named Subchapter V Trustee ------------------------------------------------------- The U.S. Trustee for Regions 3 and 9 appointed Deborah Fish, Esq., managing partner at Allard & Fish, P.C., as Subchapter V trustee for Monicatti Auto Sales, LLC. Ms. Fish will be paid an hourly fee of $400 for her services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Ms. Fish declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. The Subchapter V trustee can be reached at: Deborah L. Fish, Esq. Allard & Fish, P.C. 1001 Woodward Ave., Ste. 850 Detroit, MI 48226 Phone: (313) 961-6141 Email: dfish@allardfishpc.com About Monicatti Auto Sales Monicatti Auto Sales, LLC, a seller of pre-owned vehicles in New Baltimore, Mich. The Debtor filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. E.D. Mich. Case No. 23-47427) on Aug. 24, 2023, with $50 to $100,000 in assets and $1 million to $10 million in liabilities. Michael Monicatti, member, signed the petition. Judge Thomas J. Tucker oversees the case. Elliot G. Crowder, Esq., at Stevenson & Bullock, P.L.C. represents the Debtor as legal counsel. MY TRUE MILES: Operating Revenues to Fund Plan Payments ------------------------------------------------------- My True Miles, LLC filed with the U.S. Bankruptcy Court for the Southern District of Florida a Plan of Reorganization for Small Business dated August 31, 2023. The Debtor is a limited liability company. Since 2015, the Debtor has been in the business of reselling GPS monitoring units, and monitoring services to end users. The Plan Proponent's financial projections show that the Debtor will have projected disposable income of $15,231.90. The final Plan payment is expected to be paid on November 1, 2026. This Plan of Reorganization proposes to pay creditors of the Debtor from operating revenues. Non-priority unsecured creditors holding allowed claims will receive distributions, which the proponent of this Plan has valued at approximately 2.0 cents on the dollar. This Plan also provides for the payment of administrative and priority claims. Class 3 consists of Non-priority unsecured creditors. Monthly payments of their pro rata portion of the debtor's projected profits as determined under this Plan; total monthly payment proposed is $423.11. This Class is impaired. The debtor's sole member, Domenick Chiapparelli, will retain all equity interests in the reorganized debtor. The debtor's sole member, Domenick Chiapparelli, will continue to serve as the reorganized debtor's manager and handle all operations of the reorganized debtor. The effective date payments will be funded from the debtor's DIP account, and the ongoing quarterly, payments made pursuant to the plan will be made from the reorganized debtor's revenues. A full-text copy of the Plan of Reorganization dated August 31, 2023 is available at https://urlcurt.com/u?l=cofMhV from PacerMonitor.com at no charge. Attorney for the Plan Proponent: Stephen C. Breuer, Esq. Breuer Law, PLLC 6501 Congress Ave., Ste. 240 Boca Raton, FL 33487 Telephone: (954) 607-3244 Facsimile: (954) 607-3244 Email: Stephen@breuer.law About My True Miles My True Miles, LLC, has been in the business of reselling GPS monitoring units, and monitoring services to end users. The Debtot filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. S.D. Fla. Case No. 23-14354) on June 2, 2023, with as much as $50,000 in assets and $500,001 to $1 million in liabilities. Linda Leali, Esq., at Linda M. Leali, P.A. has been appointed as Subchapter V trustee. Judge Erik P. Kimball oversees the case. The Debtor tapped Stephen C. Breuer, Esq., at Breuer Law, PLLC as bankruptcy counsel and Las Vegas Professional Tax, LLC as accountant. MYLIFE.COM INC: Seeks to Extend Plan Exclusivity to March 1 ----------------------------------------------------------- Mylife.com, Inc. asks the U.S. Bankruptcy Court for the Central District of California to extend its exclusive period to file a plan from September 27, 2023 to March 1, 2024, and its exclusive period to obtain acceptances thereto from November 27, 2023 to May 1, 2024. The Debtor explained that its request for extension is supported by the fact that: (a) the requested extension will facilitate any anticipated claims analysis and potential objections/estimation motions that will extend beyond the current exclusivity period (given that a claims bar date has not yet been set) as well as any discussions with creditors relating thereto; (b) the USA’s motion for summary judgment was denied in part, and the Court has recently ordered the parties to mediation; a settlement, if any, is unlikely to occur by the current exclusivity deadline, and if the mediation is unsuccessful, the litigation of the adversary will extend well beyond the current deadline, the outcome of which will affect the terms of the Debtor’s Plan; (c) the extension will accommodate the intervening holiday season and time to transfer the case and adversary proceeding to a different judge upon this Court’s retirement; (d) the requested extension is timely; and (e) the request for an extension is made upon proper notice. Mylife.com, Inc. is represented by: Leslie A. Cohen, Esq. J’aime Williams Kerper, Esq. LESLIE COHEN LAW, PC 1615-A Montana Avenue Santa Monica, CA 90403 Tel: (310) 394-5900 Email: leslie@lesliecohenlaw.com jaime@lesliecohenlaw.com About Mylife.com Inc. Mylife.com, Inc. is an American information brokerage firm founded by Jeffrey Tinsley in 2002 as Reunion.com. On Sept. 2, 2022, Mylife.com Inc., doing business as Reunion.com Inc., filed for Chapter 11 protection (C.D. Calif. Case No. 22-14858), with between $500,000 and $1 million in assets and between $10 million and $50 million in liabilities. Jeffrey Tinsley, chief executive officer of Mylife.com, signed the petition. Judge Ernest M. Robles oversees the case. The Debtor tapped Leslie Cohen Law, PC as bankruptcy counsel; Larson, LLP and Hahn & Hahn, LLP as special counsels; and BPM, LLP as accountant. NABORS GARAGE: Seeks Cash Collateral Access ------------------------------------------- Nabors Garage Doors LLC asks the U.S. Bankruptcy Court for the Northern District of Georgia, Atlanta Division, for authority to use cash collateral in accordance with the budget. The Debtor requires the use of cash collateral to pay operating expenses of the Business, including inventory, insurance, taxes, and compensation of its work force. CHTD Company, asserts a lien upon the Debtor's assets as more particularly described in the UCC Initial Filing Numbers 038-2019-020230 filed on November 5, 2019. Upon information and belief, any associated indebtedness has been paid in full. First Home Bank a/k/a Stockman Bank asserts a first priority liens upon the Debtor's assets as more particularly described in the UCC Initial Filing Number 007-2020-008426 filed on March 2, 2020, in the records of the Superior Court of Barrow County, Georgia, securing an asserted outstanding indebtedness of approximately $134,000. U.S. Small Business Administration asserts a second priority lien upon the Debtor's assets as more particularly described in the UCC Initial Filing Number 038-2020-091547 filed on November 2, 2020, in the records of the Superior Court of Coweta County, Georgia, securing an asserted outstanding indebtedness of approximately $1.9 million. Transportation Alliance Bank Inc. asserts a junior lien upon the Debtor's assets as more particularly described in the UCC Initial Filing Number 007-2021-000297 filed on January 5, 2021, in the records of the Superior Court of Barrow County, Georgia, securing an asserted outstanding indebtedness of approximately $41,000. CHTD, asserts a junior lien upon the Debtor's assets as more particularly described in UCC Initial Filing Number 038-2021-012380 filed on May 17, 2021, in the records of the Superior Court of Coweta County, Georgia, securing asserted outstanding indebtedness. The Debtor is unsure of which creditor CHTD is serving as representative, but shows it may be for: (i) BHG Financial, with an estimated asserted claim of $200,000; (ii) Celtic Bank, with an estimated asserted claim of $100,000; (iii) Clover, with an estimated asserted claim of $10,000; (iv) Kapitus, with an estimated asserted claim of $216,000; or (v) On Deck Capital, with an estimated asserted claim of $117,000. Valpak Franchise Operations Inc. d/b/a Valpak of Atlanta, asserts a junior lien upon the Debtor's assets as more particularly described in the Writ of Fieri Facias entered on October 14, 2022, in the records of the State Court of Fulton County, Georgia, securing an asserted outstanding indebtedness of approximately $24,181. CT Corporation System, as representative, asserts a junior lien upon the Debtor's assets as more particularly described in the UCC Initial Filing Numbers 007-2023-028934 filed on June 5, 2023, in the records of the Superior Court of Barrow County, Georgia. The Debtor is unsure of which creditor(s) CT is serving as representative, but shows it may be for: (i) BHG Financial, with an estimated asserted claim of $200,000; (ii) Celtic Bank, with an estimated asserted claim of $100,000; (iii) Clover, with an estimated asserted claim of $10,000; (iv) Kapitus, with an estimated asserted claim of $216,000; or (v) On Deck Capital, with an estimated asserted claim of $117,000. CT, as representative, asserts a junior lien upon the Debtor's assets as more particularly described in the UCC Initial Filling Number 007-2023-032839 filed on June 27, 2023, in the records of the Superior Court of Barrow County, Georgia. Debtor is unsure of which creditor(s) CT is serving as representative, but shows it may be for: (i) BHG Financial, with an estimated asserted claim of $200,000; (ii) Celtic Bank, with an estimated asserted claim of $100,000; (iii) Clover, with an estimated asserted claim of $10,000; (iv) Kapitus, with an estimated asserted claim of $216,000; or (v) On Deck Capital, with an estimated asserted claim of $117,000. CSC, as representative, asserts a junior lien upon the Debtor's assets as more particularly described in UCC Initial Filing Number 038-2023-014230 filed on June 27, 2023, in the records of the Superior Court of Coweta County, Georgia. The Debtor is unsure of which creditor CSC is serving as representative, but show it may be for: (i) BHG Financial, with an estimated asserted claim of $200,000; (ii) Celtic Bank, with an estimated asserted claim of $100,000; (iii) Clover, with an estimated asserted claim of $10,000; (iv) Kapitus, with an estimated asserted claim of $216,000; or (v) On Deck Capital, with an estimated asserted claim of $117,000. On the Petition Date, upon information and belief, the Debtor had approximately $26,730 cash on hand, approximately $50,000 inventory on hand, and approximately $19,000 in accounts receivable. The Debtor's Budget includes adequate protection payments on vehicles. The Debtor's Budget additionally includes a proposed adequate protection payment to First Home Bank. The Debtor requests permission to make said adequate protection payments as reflected in the Budget. The Debtor's Budget includes payment to Capital One Auto for a 2017 Chevy Silverado. The 2017 Chevy Silverado is owned by Oscar Meador. The Debtor uses said 2017 Chevy Silverado in the operation of its Business and has historically paid the loan for the same directly to Capital One Auto in lieu of paying Oscar Meador for the use of the same. A copy of the Debtor's motion and budget is available at https://urlcurt.com/u?l=C4vuIJ from PacerMonitor.com. The Debtor projects total operating expenses, on a weekly basis, as follows: $41,622 for the week starting September 11, 2023; $63,216 for the week starting September 18, 2023; and $52,147 for the week starting September 25, 2023. About Nabors Garage Doors LLC Nabors Garage Doors LLC has been operating since 2017 and was incorporated in Georgia in 2017 to provide installation, repairs, and servicing of garage doors and openers. The Debtor operates out of two locations: Alpharetta, Georgia, and Peachtree City, Georgia. The Debtor sought protection under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ga. Case No. 23-58391-jwc) on August 31, 2023. In the petition signed by Serena Meador, sole member, the Debtor disclosed $500,000 in total assets and $10 million in liabilities. Leslie Pineyro, Esq., at Jones & Walden, LLC, represents the Debtor as legal counsel. NATIONAL SERVICE: Chapter 7 Trustee to Settle With Chubb Insurers ----------------------------------------------------------------- The Hon. Mary F. Walrath of the U.S. Bankruptcy Court for the District of Delaware will hold a hearing on Oct. 4, 2023, at 2:00 p.m. (prevailing Eastern Time) at 824 Market Street, 5th Floor, Courtroom #4, Wilmington, Delaware 19801, to consider approval of the request to authorize Charles M. Forman, the Chapter 7 trustee of National Service Industries Inc. to enter into a settlement agreement and release by and between the Debtor and Chubb Insurer1, and authorize the Chapter 7 trustee to sell certain insurance polices to the Chubb Insurers under Section 363 of the U.S. Bankruptcy Code. Objections, if any, to the Chapter 7 trustee' request must be filed no later than 4:00 p.m. (prevailing Eastern Time) on Sept. 25, 2023, and served on these parties: a) Forman Holt Attn: Erin J. Kennedy 365 West Passaic Street Suite 400 Rochelle Park, NJ 07662 b) Ciardi, Ciardi & Astin Attn: Daniel K. Astin 1024 N. King Street Wilmington, Delaware 19801 c) Troutman Pepper Hamilton Sanders LLP Attn: Leslie Davis 401 9th Street, NW Suite 1000 Washington, DC 20004 d) Office of the United States Trustee for the District of Delaware 844 King Street Suite 2207 Lockbox 35 Wilmington, Delaware 19801 National Service Industries Inc. operates in two business segments -- textile rental and envelope manufacturing. NSI is headquartered in Atlanta, Georgia, and provides products and services throughout the United States. NEOSHO CONCRETE: Unsecureds to Split $300K via Quarterly Payments ----------------------------------------------------------------- Neosho Concrete Products Company filed with the U.S. Bankruptcy Court for the Western District of Missouri an Amended Subchapter V Small Business Plan of Reorganization dated August 31, 2023. Debtor originally operated a Ready-Mix concrete plant with a division for manufacturing and sale of masonry units. Debtor was founded in 1953 and organized in the state of Oklahoma as a Chapter C Corporation registered to do business in Missouri. Debtor's bankruptcy filing was precipitated as a result of a major billing dispute with FeHog, LLC who received an arbitration judgment and was pursuing collection proceedings. At the time of the judgment, Debtor was performing under the Owens Corning Agreement. Owens Corning proceeded to terminate the agreement causing Debtor to pause its manufacturing operations and furlough its employees. At the time Debtor paused its manufacturing operations, Debtor held 20,470 tons of unmanufactured rockwool shot at its facility. This Plan places claims and equity interests in various classes and describes the treatment each class will receive. Payments and distributions under the Plan will be funded by the Debtor from (1) Debtor's reinitiation of its business operation and its projected and allocated cash flow therefrom; (2) a cash reserve fund in the amount of $300,000.00 to be distributed pro rata to all allowed general unsecured claims beginning 28 days following the effective date of the Plan; and (3) a pro rata share of $300,000.00 to be distributed pro rata to all allowed general unsecured claims with distributions to paid quarterly with the first distribution to be on the 15th day of the months of January, April, July, and October following the effective date of the Plan. The Plan provides for payments to members of the class of allowed secured claims including allowed judgment lien claims on a monthly basis, payments to allowed priority tax claims on a quarterly basis, and payments distributed pro rata to all allowed general unsecured claims with payments on a quarterly basis. Class 3 consists of General Unsecured Claims. Following Court determination or resolution of any objections to claims, Debtor proposes to act as the disbursing agent to make periodic interim distributions to all allowed unsecured claims in the following amounts and schedule: * From the cash balance of the settlement sum, Debtor shall distribute a fixed sum of $300,000.00 to all allowed unsecured claims in an amount representing a pro rata share calculated by dividing a creditor's allowed claim by the total of all allowed and undisputed claims included in the class in the percentages. * A pro rata share of $300,000.00 to be distributed pro rata to all allowed general unsecured claims with distributions to be paid quarterly with the first distribution to be on the 15th day of the months January, April, July, and October following the effective date of the Plan. Debtor shall act as its own disbursing agent and shall establish such accounts as deemed necessary or desirable to effectuate payments as provided for in the Plan including an account to function as a general creditor fund from which Debtor as disbursing agent shall disburse a pro rata share of the fund to the holders of all allowed claims in any class of claims under the Plan as provided for in the Plan. Class 4 consists of Equity Interest Holders or Parties who Hold an Ownership Interest (i.e. Equity Interest) of the Debtor. As the Debtor is a corporation, persons or entities holding preferred or common stock are equity interest holders. Equity interest holders shall not receive any distribution or payment until after payment of all claims in Classes 1 to 3 at which time equity security holders may receive their pro rata share of any distribution arising as a result of their ownership interest in the Debtor's corporation. Debtor intends to utilize a reasonable and necessary portion of the Settlement Sum to reinitiate and reestablish its manufacturing business operation for future sale of masonry units and leading to and following the start up, expects to have sufficient cash on hand to make the payments required on the effective date and continuing thereafter. A full-text copy of the Amended Subchapter V Plan dated August 31, 2023 is available at https://urlcurt.com/u?l=qd0cbi from PacerMonitor.com at no charge. Attorney for Debtor: David E. Schroeder, Esq. David Schroeder Law Office, P.C. 1524 E. Primrose, Suite A Springfield, MO 65804 Phone: (417) 890-1000 Fax : 417-886-8563 Email: bk1@dschroederlaw.com About Neosho Concrete Products Neosho Concrete Products Company, a ready-mix concrete supplier in Neosho, Mo., filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. W.D. Mo. Case No. 20-30314) on July 7, 2020, with $100,000 to $500,000 in assets and $1 million to $10 million in liabilities. Neosho President Warren Langland signed the petition. Judge Brian T. Fenimore oversees the case. The Debtor tapped David Schroeder Law Office, PC as its legal counsel. NEW MEDICAL: Hires Gloria Justiniano Irizarry as Counsel -------------------------------------------------------- New Medical and Education Services Inc. C.S.P. seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to hire the Law Office of Gloria Justiniano Irizarry as its legal counsel. The firm will provide these services: a. examine documents of the Debtor and other necessary information to prepare its schedules of assets and liabilities and statements of financial affairs; b. prepare the Debtor's disclosure statement and plan of reorganization; c. identify and prosecute claims and causes of action on behalf of the Debtor; d. examine proofs of claim filed and to be filed in the Debtor's bankruptcy case; e. advise the Debtor and prepare documents in connection with the ongoing operation of its business; and g. advise the Debtor and prepare documents in connection with the liquidation of assets of the bankruptcy estate, including analysis and collection of outstanding receivables. The firm will be paid at these hourly rates: Partner $275 Paralegal $50 Justiniano Irizarry was paid a retainer in the amount of $6,000 and will receive reimbursement for work-related expenses. The firm is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtor and its estate, according to court filings. Justiniano Irizarry can be reached at: Gloria Justiniano Irizarry, Esq. LAW OFFICE OF GLORIA JUSTINIANO IRIZARRY Calle A. Ramirez Silva, Suite 8 Mayaguez, PR 00680-4714 Tel: (787) 831-3577 Email: justiniano@gmail.com About New Medical and Education Services Inc. C.S.P. New Medical and Education Services Inc. C.S.P. filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 23-02588). The petition was signed by Orvil Edgardo Ramos Diaz as president. At the time of filing, the Debtor estimated $1 million to $10 million in both assets and liabilities. The Debtor is represented by Gloria Justiniano Irizarry, Esq. NUTRITION53 INC: Hires Archer APLC as Bankruptcy Counsel -------------------------------------------------------- Nutrition53 Inc. seeks approval from the U.S. Bankruptcy Court for the Northern District of California to hire Archer APLC as its bankruptcy counsel. The firm will render these services: a. give advice to Debtor with respect to its powers and duties as debtor in possession in the continued management and operation of its and businesses affairs and property; b. negotiate with Debtor's creditors and other parties in interest in working out a plan of reorganization, and to take necessary legal steps in order to confirm such plan, including, if need be, negotiations for financing such plan; c. prepare on Debtor's behalf, as debtor in possession, necessary applications, objections, motions, complaints, answers, orders, reports and other pleadings and documents; d. appear before the Court and the United States Trustee and to protect Debtor's interests before the Court and the United States Trustee; e. perform such other legal services for Debtor, as debtor in possession, as may be necessary and appropriate. Archer shall be compensated for its services at a reduced billing rate of $400. Archer does not represent any interests adverse to Debtor or to its estate and is a "disinterested person" as that term is defined in Code section 101(14), according to court filings. The firm can be reached through: Miles Archer Woodlief, Esq. ARCHER APLC 775 E Blithedale Ave Pmb 514 Mill Valley, CA 94941-1554 Phone: 415-730-3032 Fax: 415-366-2956 Email: miles@thearcherfirm.com About Nutrition53 Inc. Nutrition53 Inc. is engaged in in retailing food supplement products. Nutrition53 Inc. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Cal. Case No. 23-40997) on August 11, 2023. In the petition filed by Kristine Manlapaz, as CEO, the Debtor reports estimated assets between $1 million and $10 million and estimated liabilities between $10 million and $50 million. Miles Archer Woodlief of ARCHER is the Debtor's counsel. OFF LEASE ONLY: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Three affiliates that concurrently filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code: Debtor Case No. ------ -------- Off Lease Only LLC (Lead Case) 23-11388 1200 S. Congress Ave. Palm Springs FL 33406 Off Lease Only Parent LLC 23-11387 Colo Real Estate Holdings LLC 23-11389 Business Description: Prior to the Petition Date, the Debtors were used car retailer, operating dealerships. The Company operated five used car dealerships in Florida and one in Texas. However, the Company sold cars to customers throughout the United States. The Company ceased operations shortly before the Petition Date and intends to wind down its business and allow its floorplan lender to collect the vehicles securing its loan during these Chapter 11 Cases. Chapter 11 Petition Date: September 7, 2023 Court: United States Bankruptcy Court District of Delaware Judge: Hon. Craig T. Goldblatt Debtors' Co-Counsel: Brian S. Rosen, Esq. Megan R. Volin, Esq. PROSKAUER ROSE LLP Eleven Times Square New York, NY 10036-8299 Tel: (212) 969-3000 Fax: (212) 969-2900 Email: brosen@proskauer.com mvolin@proskauer.com - and - Christian J. Palacios, Esq. Ashley M. Weringa, Esq. PROSKAUER ROSE LLP 70 W. Madison, Suite 3800 Chicago, Illinois 60602 Tel: (312) 962-3550 Fax: (312) 962-3551 Email: aweringa@proskauer.com cpalacios@proskauer.com - and - Laura Davis Jones, Esq. James O'Neill, Esq. Colin R. Robinson, Esq. PACHULSKI STANG ZIEHL & JONES LLP 919 North Market Street 17th Floor Wilmington, DE 19801 Tel: 302-652-4100 Fax: 302-652-4400 Email: ljones@pszjlaw.com joneill@pszjlaw.com crobinson@pszjlaw.com Debtors' Financial Advisor: Eric Houle Kyle Dans Clay Cavallo FTI CONSULTING, INC. 1201 W Peachtree Street, NW Suite 3300 Atlanta, GA 30309 Tel: 404.460.6200 Fax: 404.460.6299 Debtors' Investment Banker: BOFA SECURITIES, INC. Debtors' Claims & Noticing Agent and Administrative Advisor: STRETTO, INC. Estimated Assets: $100 million to $500 million Estimated Liabilities: $100 million to $500 million The petitions were signed by Leland Wilson as chief executive officer. Full-text copies of the petitions are available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/SSOYMIQ/Off_Lease_Only_Parent_LLC__debke-23-11387__0001.0.pdf?mcid=tGE4TAMA https://www.pacermonitor.com/view/HQBZXVI/Off_Lease_Only_LLC__debke-23-11388__0001.0.pdf?mcid=tGE4TAMA https://www.pacermonitor.com/view/C5BC6FI/Colo_Real_Estate_Holdings_LLC__debke-23-11389__0001.0.pdf?mcid=tGE4TAMA List of Debtors' 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount 1. Spirit Realty Landlord or Real $5,624,007 2727 N. Harwood St Property Lease Dallas, TX 75201 Tel: (972) 476-1900 2. M&E Holdings Loan $5,282,233 1740 Overseas Highway Marathon, FL 3305 3. Cerberus Technology Solutions Professional $2,936,615 875 Third Avenue 14th Floor Services New York, NY, 10022 Tel: (212) 891-2100 4. Cerberus Operations and Professional $555,763 Advisory Company Services 875 Third Avenue 14th Floor New York, NY, 10022 Tel: (212) 891-2100 5. Dent Wizard Trade Debts $417,980 PO Box 7410241 Chicago, IL 60674 Tel: (800) 336-8949 6. Google Trade Debts $311,364 PO Box 883654 Los Angeles, CA 90088 Tel: (650) 253-0000 7. Ownershield Trade Debts $260,429 1900 Firman Drive Suite 700 Richardson, TX 75081 Tel: (800) 242-7316 8. Warranty Solutions Trade Debts $236,129 7125 W. Jefferson Ave Ste 200 Lakewood, CO 80235 Tel: (800) 828-1392 9. Shift Operations, LLC Trade Debts $236,000 290 Divsion St Ste #400 San Francisco, CA 94103 Tel: (562) 600-6990 10. Florida Engineering & Trade Debts $159,988 Development Corp. 12076 Nw 98th Ave Hialeah Gardens, FL 33018 Tel: (305) 820-8333 11. Classic Norman & Trade Debts $127,152 Company Inc. 13401 McCormick Drive Tampa, FL, 33626 Tel: (813) 855-8300 12. 700Credit Trade Debts $75,341 P.O. Box 101015 Pasadena, CA 91189 Tel: (866) 273-3848 13. Ocean Detailing USA Trade Debts $170,626 Management 3112 Jupiter Park Circle Jupiter, FL 33458 Tel: (561) 688-1777 14. Cargurus Trade Debts $62,400 P.O. Box 419008 Boston, MA 02241 Tel: (800) 227-4848 15. Outfront Media Trade Debts $61,118 185 US Hwy 46 Fairfield, NJ 07004 Tel: (973) 575-6900 16. De Lage Landen Financial Trade Debts $59,268 Services, Inc. P.O. Box 41602 Philadelphia, PA 19101 Tel: (800) 736-0220 17. Carfax Inc. Trade Debts $56,988 16630 Collection Center Drive Chicago, IL 60693 Tel: (800) 274-2277 18. Autozone Inc. Trade Debts $56,091 P.O. Box 116067 Atlanta, GA 30368 Tel: (407) 277-5483 19. Axiom Product Administration Trade Debts $47,522 1 Progress Point Parkway o'Fallon, MO, 63368 Tel: (844) 252-0937 20. Criteo Corp. Trade Debts $46,310 PO Box 392422 Pittsburgh, PA 15251 Tel: (857) 991-1880 OFFICE PROPERTIES: S&P Downgrades ICR to 'BB-', Outlook Negative ---------------------------------------------------------------- S&P Global Ratings lowered its issuer credit rating on Office Properties Income Trust (OPI) to 'BB-' from 'BB' and removed it from CreditWatch with negative implications, where S&P placed it on April 11, 2023. At the same time, S&P lowered its issue-level rating on its senior unsecured notes to 'BB' from 'BB+'. The recovery rating on this debt is '2'. S&P said, "The negative outlook reflects our expectation that cyclical and secular headwinds will continue pressuring OPI's operating performance. The outlook also reflects our view that liquidity could be further strained with looming debt maturities. We project S&P Global Ratings-adjusted debt to EBITDA will remain in the mid-8x area, with a modest deterioration in fixed-charge coverage (FCC) to the low- to mid-2x area over the next 12 months." OPI's operating performance continues to be pressured leading to an increase in leverage over the first half of 2023. The company's same-property cash basis net operating income (NOI) declined by 3.7% during both the second quarter and year-to-date periods. Occupancy for the same-property portfolio declined by 100 basis points year-over-year and its cash basis NOI margin declined by more than 200 basis points. The company faced material lease expirations in 2023 and still has 9% of annualized rental income expiring during the remainder of 2023. Additionally, OPI has 13% of annualized rental income expiring in 2024. These upcoming lease expirations present a heightened risk given the cyclical and secular office headwinds and will likely result in continued pressure to the company's operating performance and occupancy over the next couple of years. Expected asset sales have not yet materialized as the company has been focused on its proposed merger with Diversified Healthcare Trust (DHC) for the past few months, which the two companies have mutually agreed to terminate. OPI generated only $13.1 million in gross proceeds from dispositions thus far in 2023 and $216.4 million in 2022, following an initial expectation of $400 million to $500 million of proceeds from dispositions in 2022. The transaction environment remains challenging, particularly for office assets, and the company's ability to execute on future asset sales is also uncertain. Additionally, the company has two large development projects with total estimated costs of $389 million. These projects are expected to be completed by year-end 2023; however, significant lease-up remains as the projects are 54% and 28% pre-leased, respectively, and we think stabilization will take time. While future dispositions and the lease up of development projects provide a path to some deleveraging, significant execution risk remains and pressured operating performance will continue to weigh on EBITDA. S&P Global Ratings-adjusted debt to EBITDA was 8.4x as of June 30, 2023, an increase from 7.5x as of year-end 2022 and from 7.1x a year prior. S&P expects leverage to remain in the mid-8x area throughout the remainder of 2023 with minimal improvement in 2024 as development completions and proceeds from asset sales are likely to be offset by continued pressure to operating performance. The company has material debt maturities coming due over the next 12 months that it will need to refinance at higher rates. OPI's $750 million unsecured revolving credit facility matures in January 2024 and it had intended to recast it in connection with the merger. However, now that the merger has been terminated, timing on the refinancing of the facility is unknown and the inability to recast the revolver could further pressure our view of liquidity. Furthermore, the company has $350 million of 4.25% senior unsecured notes due in May 2024. OPI has recently completed some mortgage loans in connection with its anticipated merger with DHC, raising $108.1 million in proceeds at a weighted average interest rate of 7.863%. This is a positive indication that the secured debt market is accessible, although at significantly higher rates than OPI's existing debt. As of June 30, 2023, OPI's S&P Global Ratings-adjusted fixed-charge coverage (FCC) ratio was solid at 2.8x; however, refinancing efforts over the next few years will likely lead to significant deterioration to the FCC ratio. S&P said, "The negative outlook reflects our expectation that cyclical and secular headwinds will continue to pressure OPI's operating performance. The outlook also reflects our view that liquidity could be further strained with looming debt maturities. We project S&P Global Ratings-adjusted debt to EBITDA will remain in the mid-8x area, with a modest deterioration in FCC to the low- to mid-2x area over the next 12 months." S&P could lower its rating on OPI if: -- The company cannot refinance its revolving credit facility before it matures, further pressuring liquidity; -- Its key credit metrics compare unfavorably to peers, such that its S&P Global Ratings-adjusted debt to EBITDA increases to and remains above 8.5x or its FCC declines below 1.9x, perhaps because it cannot generate sufficient proceeds from asset sales or from refinancing debt at higher rates; or -- Its operating performance deteriorates materially, perhaps due to occupancy being pressured well beyond our expectations. S&P could also lower the issue-level ratings on OPI's unsecured notes if it estimates of recovery prospects for bondholders decreases below 70%, likely because the company refinances maturities with a higher proportion of secured debt. S&P could revise the outlook back to stable if: -- The company successfully refinances its revolver and addresses upcoming debt maturities such that S&P views its liquidity position as adequate; -- It reduces and sustains S&P Global Ratings-adjusted debt to EBITDA below 8.0x and FCC above 2.1x; and -- The company's operating performance is largely in line with its expectations, with occupancy in the mid- to high-80% area. ORBITAL INFRASTRUCTURE: U.S. Trustee Appoints Creditors' Committee ------------------------------------------------------------------ The U.S. Trustee for Region 7 appointed an official committee to represent unsecured creditors in the Chapter 11 case of Orbital Infrastructure Group, Inc. The committee members are: 1. Tidal Power Group, LLC 4211 Chance Lane Rosharon, TX 77538 Monty Janak Phone: (281) 710-9141 Email: monty@tps03.com 2. Jingoli Power, LLC 100 Lenox Drive, Suite 100 Lawrenceville, NJ 08648 Glenn Clouser Phone: (609) 896-3111 Email: gclouser@jingoli.com 3. Herc Rentals, Inc. 27500 Riverview Center Blvd. Bonita Springs, FL 34134 Amber Auckerman Phone: (239) 301-1579 Email: amber.auckerman@hercrentals.com 4. Premier Truck Rental, LLC 9138 Bluffton Road Fort Wayne, IN 46809 Dave Marshall Phone: (260) 494-1312 Email: dave.marshall@rentptr.com 5. Vermeer Heartland, Inc. 2574 US Hwy 22 NW Washington Court Hour, OH 73160 Richard Bowling Phone: (740) 313-3126 Email: rbowling@vermeerhl.com Official creditors' committees serve as fiduciaries to the general population of creditors they represent. They may investigate the debtor's business and financial affairs. Committees have the right to employ legal counsel, accountants and financial advisors at a debtor's expense. About Orbital Infrastructure Group Orbital Infrastructure Group, Inc. offers a comprehensive suite of infrastructure solutions, providing engineering, design, construction, maintenance, and disaster recovery services to electric power, telecommunications, and renewable energy customers, of which electric power and telecommunication segments are still active. The company is based in Houston, Texas. Orbital Infrastructure sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Texas Lead Case No. 23-90763) on Aug. 23, 2023. In the petition filed by James F. O'Neil III, as chief executive officer, the Debtor reported total assets of $24,185,668 and total debt of $225,850,276. The case is overseen by the Honorable Bankruptcy Judge David R. Jones. The Debtors tapped Haynes and Boone, LLP as counsel, and Moelis & Company as investment banker. Donlin, Recano & Company, Inc. is the claims agent. PARTY CITY: Texas Bankruptcy Court Approves Reorganization Plan --------------------------------------------------------------- Party City Holdco Inc., a global leader in the celebrations industry, on Sept. 6, 2023, disclosed that it has received approval from the U.S. Bankruptcy Court for the Southern District of Texas of its Plan of Reorganization, paving the way for the Company to emerge from Chapter 11 on stronger financial footing. Under the Plan, PCHI will exit with a substantially strengthened capital structure and improved liquidity, helping to ensure the Company is best equipped to continue to execute on its strategy and further enhance its market leadership as the go-to destination for all things celebration. Specifically, the Plan provides for PCHI's debt to be reduced by nearly $1 billion upon emergence. PCHI will move forward with a more profitable Party City store footprint, consisting of nearly 800 locations nationwide, after negotiating improved lease terms and exiting less productive locations during the Chapter 11 process. "The Plan approval is an important milestone in completing our financial restructuring and successfully positioning PCHI for the future, " said Brad Weston, Chief Executive Officer of PCHI. "With our debt substantially reduced and Party City store portfolio optimized, we will emerge better positioned to advance our strategic priorities, continue to innovate and elevate the consumer experience, and pursue new growth opportunities. We thank our team members, retail and wholesale customers, suppliers, and landlords for their support and collaboration during this process, and we are excited to build on PCHI's proud history as the leader in the celebrations space." Under the terms of the approved Plan, PCHI is expected to emerge with new shareholders, including the members of the ad hoc group of holders of the Company's senior secured first lien notes who supported the restructuring. The Plan provides for a new exit ABL facility of $562 million and a fully backstopped $75 million new money investment to fund distributions and payment of administrative claims under the Plan as well as the Company's operations upon emergence. Additional Information Court filings and other documents related to the Company's financial restructuring are available at https://cases.ra.kroll.com/PCHI Suppliers with questions can call a dedicated hotline at (888) 905-0493 (toll-free) or +1 (646) 440-4580 (international) or email PCHIInquiries@ra.kroll.com. Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as legal counsel, Moelis & Company LLC is serving as investment banker, AlixPartners, LLP is serving as financial advisor, and A&G Realty Partners is serving as real estate advisor to the Company. Davis Polk & Wardwell LLP is serving as legal counsel and Lazard Frères & Co. is serving as investment banker to the Ad Hoc Group. About Party City Holdco Party City Holdco Inc. (NYSE: PRTY) is the global leader in the celebrations industry, with its offerings spanning more than 70 countries around the world. It is also the largest designer, manufacturer, distributor, and retailer of party goods in North America. Party City Holdco had 761 company-owned stores as of September 2022. It is headquartered in Woodcliff Lake, N.J. with additional locations throughout the Americas and Asia. Party City Holdco and its domestic subsidiaries sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Texas Lead Case No. 23-90005). As of Sept. 30, 2022, Party City Holdco had total assets of $2,869,248,000 against total debt of $3,022,960,000. Judge David R. Jones oversees the cases. The Debtors tapped Paul, Weiss, Rifkind, Wharton & Garrison, LLP, as legal counsel; Moelis & Company, LLC as investment banker; AlixPartners, LLP as financial advisor; A&G Realty Partners as real estate advisor; and Kroll as the claims agent. PricewaterhouseCoopers LLP (PwC) provides accounting and valuation advisory services, tax-related services, and internal audit Sarbanes-Oxley Act support services. Davis Polk & Wardwell, LLP and Lazard serve as legal counsel and investment banker, respectively, to the ad hoc group of first lien holders. The U.S. Trustee for Region 6 appointed an official committee to represent unsecured creditors in the Debtors' Chapter 11 cases. The committee is represented by Pachulski Stang Ziehl & Jones, LLP. PERMIAN RESOURCES: S&P Rates New Senior Unsecured Notes 'BB-' ------------------------------------------------------------- S&P Global Ratings assigned its 'BB-' issue-level rating and '2' recovery rating to U.S.-based crude oil and natural gas exploration and production company Permian Resources Corp.'s proposed senior unsecured notes due 2032. The $500 million senior unsecured notes due 2032 will be issued by Permian Resources Operating LLC, a subsidiary of Permian Resources Corp., and the notes will be guaranteed on a senior unsecured basis by Permian Resources Corp. The '2' recovery rating indicates its expectation of substantial (70%-90%; rounded estimate: 85%) recovery in the event of a default. S&P expects the company to use the proceeds from this offering to repay indebtedness related to its acquisition of Earthstone Energy Inc. and for general corporate purposes. PRAIRIE ACQUIROR: S&P Assigns 'B+' ICR, Outlook Stable ------------------------------------------------------ S&P Global Ratings assigned its 'B+' issuer credit rating with a stable outlook to Prairie Acquiror L.P. S&P also withdrew its ratings on Prairie ECI Acquiror L.P. The issue-level ratings are unchanged. Following the completion of the corporate simplification, S&P now assign its ratings to Prairie Acquiror L.P. S&P notes that the change in organizational structure has no impact on the company's creditworthiness or its analysis of its credit rating. Our view of the company is unchanged. S&P said, "Concurrent with our assignment of ratings at Prairie Acquiror L.P., we withdrew the issuer credit rating on Prairie ECI Acquiror L.P. Our issue-level ratings on the company's senior secured term loan, as well as the unsecured borrowings at Tallgrass Energy Partners L.P., are unchanged at 'B' and 'BB-', respectively." PUERTO RICO: Bankruptcy Plan Faces Opposition from Creditors ------------------------------------------------------------ Michelle Kaske of Bloomberg News reports that an increasing number of creditors are pushing back against a plan to cut the debt load of Puerto Rico's bankrupt power utility by 75%, with investors and insurers accounting for $3.6 billion of the bonds set to vote against the proposal, a lawyer warned Wednesday. Investors holding approximately $1.8 billion of Puerto Rico Electric Power Authority debt plan to join GoldenTree Asset Management, Syncora Guarantee and Assured Guaranty in opposing the restructuring plan submitted Friday, August 25, 2023, to the court by a federally appointed financial oversight board, Thomas Lauria, a lawyer representing GoldenTree, said Wednesday, August 30, 2023, during a court hearing. About Puerto Rico Puerto Rico is a self-governing commonwealth in association with the United States. The chief of state is the President of the United States of America. The head of government is an elected Governor. There are two legislative chambers: the House of Representatives, 51 seats, and the Senate, 27 seats. The governor-elect is Ricardo Antonio "Ricky" Rossello Nevares, the son of former governor Pedro Rossello. In 2016, the U.S. Congress passed PROMESA, which, among other things, created the Financial Oversight and Management Board and imposed an automatic stay on creditor lawsuits against the government, which expired May 1, 2017. The members of the oversight board are: (i) Andrew G. Biggs, (ii) Jose B. Carrion III, (iii) Carlos M. Garcia, (iv) Arthur J. Gonzalez, (v) Jose R. Gonzalez, (vi) Ana. J. Matosantos, and (vii) David A. Skeel Jr. On May 3, 2017, the Commonwealth of Puerto Rico filed a petition for relief under Title III of the Puerto Rico Oversight, Management, and Economic Stability Act ("PROMESA"). The case is pending in the United States District Court for the District of Puerto Rico under case number 17-cv-01578. A copy of Puerto Rico's PROMESA petition is available at http://bankrupt.com/misc/17-01578-00001.pdf On May 5, 2017, the Puerto Rico Sales Tax Financing Corporation (COFINA) commenced a case under Title III of PROMESA (D.P.R. Case No. 17-01599). Joint administration has been sought for the Title III cases. On May 21, 2017, two more agencies -- Employees Retirement System of the Government of the Commonwealth of Puerto Rico and Puerto Rico Highways and Transportation Authority (Case Nos. 17-01685 and 17-01686) -- commenced Title III cases. U.S. Chief Justice John Roberts named U.S. District Judge Laura Taylor Swain to preside over the Title III cases. The Oversight Board has hired as advisors, Proskauer Rose LLP and O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic consultant, Citigroup Global Markets as municipal investment banker, and Ernst & Young, as financial advisor. Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M. Abelson, Esq., of Proskauer Rose LLP; and Hermann D. Bauer, Esq., at O'Neill & Borges LLC are onboard as attorneys. Prime Clerk LLC is the claims and noticing agent. Prime Clerk maintains the case web site https://cases.primeclerk.com/puertorico Jones Day is serving as counsel to certain ERS bondholders. Paul Weiss is counsel to the Ad Hoc Group of Puerto Rico General Obligation Bondholders. RELIABLE FORECLOSURE: Voluntary Chapter 11 Case Summary ------------------------------------------------------- Debtor: Reliable Foreclosure Corporation 353 Crescent St Brooklyn, NY 11208 Business Description: The Debtor is engaged in activities related to real estate. The Debtor owns two real properties in New York valued at $1.39 million. Chapter 11 Petition Date: September 6, 2023 Court: United States Bankruptcy Court Eastern District of New York Case No.: 23-43185 Judge: Hon. Elizabeth S. Stong Debtor's Counsel: Ronald D. Weiss, Esq. RONALD D. WEISS, P.C. 734 Walt Whitman Road Suite 203 Melville, NY 1174 Tel: (631) 271-3737 Fax: (631) 271-3784 Email: weiss@ny-bankruptcy.com Total Assets: $1,409,800 Total Liabilities: $812,816 The petition was signed by Nazam Zaman as president. The Debtor stated it has no unsecured creditors. A full-text copy of the petition is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/PFFL7PI/Reliable_Foreclosure_Corporation__nyebke-23-43185__0001.0.pdf?mcid=tGE4TAMA RIALTO BIOENERGY: May Use $290,271 of Cash Collateral ----------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of California authorized Rialto Bioenergy Facility, LLC to use cash collateral on an interim basis in accordance with the budget. The Debtor is authorized to use cash collateral in the amount of no more than $290,271 to pay those amounts specifically set forth in the budget, with 16.25% variance, to the extent necessary to fund the operations of the Debtor. If the Debtor does not pay for a particular expense during the period, the Debtor is authorized to pay for that particular expense during a later period as the Debtor deems appropriate. California Pollution Control Financing Authority and UMB, as trustee are parties to the Indenture, dated as January 1, 2019, all security agreements, notes, guarantees, mortgages, Uniform Commercial Code financing statements, documents, and instruments, pursuant to which the California Pollution Control Financing Authority issued Solid Waste Disposal Revenue Bonds in an aggregate principal amount of $117.2 million. The Authority loaned the proceeds of the Bonds to the Debtor pursuant to the Loan Agreement, dated as of January 1, 2019, to (i) finance the acquisition, construction, rehabilitation, renovation, installation, improvement and equipping of the Debtor's facility, (ii) fund 24 months of capitalized interest, (iii) fund a reserve for bonds issued by the Authority, and (iv) pay a portion of the costs of issuance of the Bonds. The Secured Parties assert that as of the Petition Date, the Debtor was indebted in the aggregate principal amount of not less than $111.975 million in respect of outstanding principal amount of the Bonds. The Debtor asserts that the aggregate principal amount of the Prepetition Obligations is less than $111.975 million. The Secured Parties assert that the Bonds are secured by first priority security interests in and liens on substantially all assets of the Debtor. To the extent of any Diminution in Value from and after the Petition Date resulting from, among other things, the use, sale or lease of the cash collateral, and the imposition of the automatic stay, the Secured Parties are granted valid, binding, continuing, enforceable, fully perfected, nonavoidable, first-priority senior, additional and replacement security interests in and liens on the Collateral. The Secured Parties are granted, solely to the extent of any Diminution in Value, an allowed superpriority administrative expense claim against the Debtor under in respect of the Adequate Protection Obligations with priority in payment over any and all administrative expenses of the kind specified or ordered pursuant to any provision of the Bankruptcy Code. The Superpriority Claim will have recourse to and be payable from all of the Debtor's available assets. The Adequate Protection Liens and security interests will be deemed valid, perfected, allowed, enforceable, non-avoidable and not subject to challenge, dispute or subordination, at the time and on the date of entry of the Order without the need for any further action by the Prepetition Trustee or the Prepetition Bondholders. The Debtor's right to use the Cash Collateral Amount will automatically terminate without further notice or court proceeding on the earliest to occur of: (a) The Court enters an order dismissing the chapter 11 case, without the consent of the Prepetition Trustee, acting at the direction of the Majority Bondholders; (b) The Court enters an order converting the chapter 11 case to a case under chapter 7 of the Bankruptcy Code, without the consent of the Prepetition Trustee, acting at the direction of the Majority Bondholders; (c) The Court enters an order appointing a chapter 11 trustee or any examiner with expanded powers relating to the operation of the business in the chapter 11 case; (d) A filing by the Debtor of any motion, pleading, application or adversary proceeding challenging the (i) validity, extent, enforceability, perfection or priority of the Prepetition Liens or asserting any other cause of action against and/or with respect to the Prepetition Documents; or (ii) the validity or enforceability of any of the Prepetition Obligations (or if the Debtor supports any such motion, pleading, application or adversary proceeding commenced by any third party); (e) The Debtor's filing of any motion or prosecuting of any motion seeking any financing under 11 U.S.C. section 364(d) secured by the Collateral that does not require the payment in full of all Prepetition Obligations; and (f) September 11, 2023. A continued hearing on the matter is set for September 8, 2023 at 11 a.m. A copy of the Court's order is available at https://urlcurt.com/u?l=U8Yifa from PacerMonitor.com. The Debtor projects $694.916 in total receipts and $882,565 in total operating disbursements for the week ended September 1, 2023. About Rialto Bioenergy Facility, LLC Rialto Bioenergy Facility, LLC owns and operates an extremely valuable, state-of-the-art, multi-feedstock bioenergy facility in Rialto, California, that converts organic waste, such as food waste, yard waste, and biosolids into carbon-negative renewable natural gas, with capability to also generate renewable electricity and soil amendment/fertilizer. The facility, the largest in North America and valued at $196.6 million, utilizes anaerobic digestion technology to convert the organic waste received from waste haulers into renewable natural gas. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Cal. Case No. 23-01467) on May 25, 2023. In the petition signed by Yaniv Scherson, vice president, the Debtor disclosed up to $500 million in both assets and liabilities. Judge Christopher B. Latham oversees the case. Jon Bender, Esq., at Levene, Neale, Bender, Yoo and Golubchik LLP, represents the Debtor as legal counsel. B. Riley Securities, Inc. serves as the Debtor's financial advisor. UMB Bank, N.A., as Indenture Trustee is represented by Nahal Zarnighian, Esq., at Ballard Spahr LLP. ROLL: BICYCLE: Court OKs Cash Collateral Access ----------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Ohio, Eastern Division, authorized roll: Bicycle Company, LLC to use cash collateral on an interim basis in accordance with the budget. The Debtor requires the use of cash collateral to fund their operations. Fifth Third Bank, National Association is the first lienholder. The Other Lien Claimants are Glick.biz, LLC, Friedl Bohm and Tucker Bohm. As previously reported by the Troubled Company Reporter, the obligations owed by the Debtors arise out of the Debtors' two debt facilities with Fifth Third consists of: (i) a term loan facility in the original principal amount of $950,000, dated November 30, 2021, and having an interest rate of 4.18% per annum, and (ii) a revolving line of credit facility in the original principal amount of $500,000, dated January 5, 2022, and having a monthly interest rate of 0.230% in excess of the prime rate (which is presently 8.5%). As of the Petition Date, the outstanding balances on the Fifth Third Term Loan and the Fifth Third LOC Loan were $747,384 and $496,077, respectively. In 2016 and 2017, Bicycle entered into a series of agreements with three parties: Friedl Bohm, Tucker Bohm and Glick.biz, LLC, whereby each of the Investor Noteholders lent varying sums of monies to roll: Bicycle under separate secured credit facilities which were evidenced by a series of promissory notes issued in 2016 and 2017. To secure the obligations of roll: Bicycle under the Original Notes, roll: Bicycle executed and delivered to the Investor Noteholders a Note Purchase and Security Agreement dated October 13, 2016 and a Note Purchase and Security Agreement dated October 26, 2017. Pursuant to the Purchase Agreements and to secure its obligations under the Original Notes, roll: Bicycle granted the Investment Noteholders a security interest in virtually all assets of Bicycle. As of the Petition Date, the amounts owed to each of the Investor Noteholders by roll: Bicycle are: $76,402 to T. Bohm, $152,079 to F. Bohm, and $152,079 to Glick. The court said that the respective security interests of the Lien Claimants in cash collateral are continued and re-granted, and the Lien Claimants will not be required to take any other action to perfect the lien(s) re-granted to them thereunder. The Lien Claimants, as their respective interests may appear, are granted liens and security interests in the Debtors' inventory, general intangibles and other revenues generated by the operation of Debtors' businesses subsequent to the Petition Date, the proceeds thereof, and all collections thereof, to secure any reduction in the value of the cash collateral subject to any such respective established valid and subsisting interest of the Lien Claimants at the Petition Date, in the same priority in such assets comprising cash collateral as such interests may have existed on the Petition Date. A copy of the court's order and the Debtor's budget is available at https://urlcurt.com/u?l=COgPPC from PacerMonitor.com. The Debtor projects total operating expenses, on a weekly basis, as follows: $44,192 for the week ending September 9, 2023; $2,409 for the week ending September 16, 2023; $44,975 for the week ending September 23, 2023; and $24,448 for the week ending September 30, 2023. About roll: Bicycle Company, LLC roll: Bicycle Company, LLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Ohio Case No. 2:23-bk-53016) on August 31, 2023. In the petition signed by Stuart Hunter, chief executive officer, the Debtor disclosed up to $10 million in both assets and liabilities. Judge John E. Hoffman, Jr. oversees the case. James A. Coutinho, Esq., at Allen Stovall Neuman & Ashton LLP, represents the Debtor as legal counsel. RWDY INC: Exclusivity Period Extended to October 17 --------------------------------------------------- Judge John S. Hodge of the U.S. Bankruptcy Court for the Western District of Louisiana extended RWDY, Inc.'s exclusivity period of 11 U.S.C.A Sec. 1121(b) to October 17, 2023. Further, the judge also ordered that if the Debtor files a plan by October 17, 2023, the Debtor's exclusivity period of 11 U.S.C.A. Sec. 1121(c) shall be extended to December 16, 2023. RWDY Inc. is represented by: Robert W. Raley, Esq. ROBERT W. RALEY ESQ. 290 Benton Spur Road Bossier City, LA 71111 Tel: 318-747-2230 Email: bankruptcy@robertraleylaw.com - and - Curtis R. Shelton, Esq. AYRES, SHELTON, WILLIAMS, BENSON & PAINE, LLC Suite 1400, Regions Tower 333 Texas Street (71101) P.O. Box 1764 Shreveport, LA 71166-1764 Tel: (318) 227-3500 Email: curtisshelton@arklatexlaw.com About RWDY Inc. RWDY Inc. -- https://www.rwdyinc.com/ -- is an oil and energy company based out of 1302 Dekort St, Copperas Cove, Texas. RWDY filed a petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. W.D. La. Case No. 22-11308) on Dec. 21, 2022, with $10 million to $50 million in both assets and liabilities. Mark Allen, manager, signed the petition. Judge John S. Hodge oversees the case. The Debtor tapped Robert W. Raley, Esq., at Ayres, Shelton, Williams, Benson & Paine, LLC as legal counsel; Leland G. Horton, Esq., at Bradley Murchison Kelly & Shea LLC as special counsel; and Postlethwaite & Netterville, APAC as accountant. SACKS WESTON: Firm Files Chapter 11 Amid Fraud Scandal ------------------------------------------------------ James Boyle of Law360 reports that struggling Philadelphia plaintiffs firm Sacks Weston LLC has filed for protection in Pennsylvania bankruptcy court, months after two of its former attorneys pled guilty to resolving cases behind their partners' backs and pocketing the proceeds. About Sacks Weston Sacks Weston is a Philadelphia-based law firm. Sacks Weston sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Penn. Case No. 23-12540) on August 25, 2023. In the petition filed by Andrew B. Sacks, as manager, the Debtor reports estimated assets between $10 million and $50 million and estimated liabilities between $10 million and $50 million. 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 SALEM MEDIA: S&P Downgrades ICR to 'CCC-', Outlook Negative ----------------------------------------------------------- S&P Global Ratings lowered its issuer credit rating on Salem Media Group Inc.to 'CCC-' from 'CCC'. The negative outlook reflects the potential for a default or debt restructuring over the next six months. Salem could face a liquidity shortfall over the next six months. As of June 30, 2023, the company had $22.6 million drawn on its ABL, which comes due March 1, 2024. While the company expects about $8 million of contracted asset sale gross proceeds to close by year-end, its cash balance is negligible. S&P said, "We estimate it will burn $1 million-$3 million cash over the remainder of the year. Therefore, absent an ABL extension, we believe the company will likely need alternative financing to meet its financial obligations. We believe it is unclear whether Salem can refinance and extend its debt maturity profile because of challenging capital market conditions, elevated financial leverage (S&P Global Ratings-adjusted gross debt to EBITDA was 8.5x for the last 12 months ended June 30), and both economic and secular challenges facing broadcast radio." Management has noted it is exploring additional asset sales, particularly real estate, although the timing and proceeds are uncertain. S&P said, "We expect Salem's leverage to remain elevated in 2023 and 2024. S&P Global Ratings economists expect prolonged slow economic growth in the back half of 2023 and into 2024, which will keep advertising trends depressed. We estimate that broadcast radio industry revenues will decline about 7% in 2023 as advertisers pull back on spending. Salem generates over 75% of its revenue from broadcast radio advertising, such that we expect S&P Global Ratings-adjusted gross leverage will increase to 8.6x in 2023 from 5.7x in 2022, although visibility into radio advertising remains limited given short lead times. We expect leverage to decline to mid-6x in 2024 on increased revenue due to the U.S. presidential election and recent cost-cutting initiatives." The negative outlook reflects the potential for a default or debt restructuring over the next six months. S&P could lower its rating in the event of a default or any type of restructuring that it would view as a default. S&P could raise the rating if Salem extends its ABL maturity or secures alternative financing that provides liquidity visibility comfortably beyond six months. SAN MARINO CAFE: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: San Marino Cafe and Marketplace LLC 2507 Mission Street San Marino, CA 91108 Business Description: The Debtor operates a bakery and tortilla manufacturing business. Chapter 11 Petition Date: September 7, 2023 Court: United States Bankruptcy Court Central District of California Case No.: 23-15814 Judge: Hon. Vincent P. Zurzolo Debtor's Counsel: Tamar Terzian, Esq. TERZIAN LAW GROUP, PC 1122 East Green St. Pasadena, CA 91106 Tel: (818) 242-1100 Fax: (818) 242-1012 Email: tamar@terzlaw.com Total Assets: $26,845 Total Liabilities: $1,184,311 The petition was signed by Linda Grace Zadoian as managing member. A full-text copy of the petition containing, among other items, a list of the Debtor's 20 largest unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/P3AELXQ/San_Marino_Cafe_and_Marketplace__cacbke-23-15814__0001.0.pdf?mcid=tGE4TAMA SPITFIRE ENERGY: Files Emergency Bid to Use Cash Collateral ----------------------------------------------------------- Spitfire Energy Group LLC asks the U.S. Bankruptcy Court for the Northern District of Texas, Amarillo Division, for authority to use cash collateral and provide adequate protection. The Debtor requires the use of cash collateral to pay the day-to-day operating expenses associated with its business, to make payments authorized by the Court, to cover the administrative costs incurred in the case. International Bank of Commerce claims an interest in the proceeds generated by the Debtor's saltwater disposal assets. On October 9, 2020, the Debtor executed and delivered to International Bank of Commerce the Amended and Restated Promissory Note, dated October 9, 2020, in the original principal amount of $29.841 million. In conjunction with the execution and delivery of the IBC Note, the Debtor executed the Amended and Restated Mortgage, Deed of Trust, Security Agreement, Assignment of Production and Financing Statement dated October 9, 2020. The Deed of Trust grants IBC an interest in, inter alia, the Debtor's saltwater disposal assets and the proceeds generated from the same. On June 24, 2022, the Debtor and related entities commenced a lawsuit against IBC in the District Court of Oklahoma County, Oklahoma, which case is styled Merit Holdings LLC, et al. v. International Bank of Commerce, an Oklahoma bank, et al., Case No. CJ2022-2971, alleging various bad acts with regard to the extension and administration of various loans made by IBC, including the IBC Note. In that lawsuit, the plaintiffs, including the Debtor, seek damages from IBC in excess of $150 million. The maturity date under the IBC Note ran on December 31, 2022. The Debtor has had its saltwater disposal assets appraised, which appraisal provides for a value of $38.643 million. IBC alleges that it is owed approximately $31.8 million under the IBC Note, which results in an equity cushion of over $6.7 million. The Debtor intends on implementing a process to market and sell the saltwater disposal assets in a fair and timely manner. Further, over this short time, cash collateral will be used by the Debtor to maintain and preserve the saltwater disposal assets. Accordingly, the equity cushion and IBC's adequate protection, will be preserved throughout the case. As additional adequate protection against any diminution in value of any validly perfected and unavoidable prepetition security interest or lien as a result of the use of cash collateral, IBC will receive adequate protection in the form of Replacement Liens up to the value of IBC's validly perfected and unavoidable prepetition security interest or lien (if any) as of the Petition Date, pursuant to 11 U.S.C. section 506. For the avoidance of doubt, to the extent a prepetition security interest or lien is avoided or found by final order to be invalid, no Replacement Liens will be granted for such avoided or invalid security interest or lien. The "Carve Out" means the following amounts: (i) statutory fees payable to the United States Trustee; (ii) fees payable to the clerk of the Bankruptcy Court; (iii) reasonable and documented expenses payable to any statutory committee appointed in the case; and (iv) professional fees and expenses incurred by professionals retained by the Debtor pursuant to 11 U.S.C. Sections 327(a) and 1103 and allowed by the Court. A hearing on the matter is set for September 13, 2023 at 11 a.m. A copy of the order is available at https://urlcurt.com/u?l=jURBU1 from PacerMonitor.com. About Spitfire Energy Group LLC Spitfire Energy Group LLC is a strategic midstream and water management provider and currently operates commercial saltwater disposal facilities in the Texas panhandle with over 165 miles of pipeline gathering and a disposal capacity of over 100,000 barrels per day. Such facilities are primarily located in Hemphill County and Wheeler County, Texas. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 23-20186) on September 1, 2023. In the petition signed by David D. Le Norman, manager, the Debtor disclosed up to $50 million in both assets and liabilities. Judge Robert L. Jones oversees the case. Clayton D. Ketter, Esq., at Phillips Murrah P.C., represents the Debtor as legal counsel. ST JOHNS RESIDENCE: Voluntary Chapter 11 Case Summary ----------------------------------------------------- Debtor: St Johns Residence LLC 1490 St Johns Place Brooklyn NY 11213 Business Description: St Johns Residence is a Single Asset Real Estate debtor (as defined in 11 U.S.C. Section 101(51B)). Chapter 11 Petition Date: September 7, 2023 Court: United States Bankruptcy Court Eastern District of New York Case No.: 23-43194 Judge: Hon. Nancy Hershey Lord Debtor's Counsel: Isaac Nutovic, Esq. LAW OFFICES OF ISAAC NUTOVIC 261 Madison Avenue, 26th Floor New York NY 10016 Tel: 917-922-7963 Email: inutovic@nutovic.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Ephraim Diamond as chief restructuring officer. The Debtor failed to include in the petition a list of its 20 largest unsecured creditors. A full-text copy of the petition is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/N36UW6Y/ST_JOHNS_RESIDENCE_LLC__nyebke-23-43194__0001.0.pdf?mcid=tGE4TAMA STAR PARENT: S&P Assigns 'B' Issuer Credit Rating, Outlook Pos. --------------------------------------------------------------- S&P Global Ratings assigned its 'B' issuer credit rating to Star Parent Inc. (doing business as Syneos Health Inc.) with a positive outlook. At the same time, S&P assigned its 'B' issue-level rating and '3' recovery rating (50%-70%; rounded estimate: 50%) to Syneos's first-lien term loan and senior secured notes. S&P said, "The positive outlook reflects our expectations that net awards will continue to improve from historically weaker awards over the past 12 months. It also incorporates our expectation that operational improvements will generate higher margins and higher cash flow in the next 12 months. "We expect all existing debt at Syneos Health Inc. will be repaid and will likely withdraw all ratings on Syneos Health Inc. upon repayment." Syneos is a global clinical research and commercial contract organization hybrid business model and is well positioned to win contracts from both large and small clients. Syneos is the fourth largest contract research organization (CRO) in the $60 billion market and the second largest contract commercial organization (CCO) in the $30 billion market. The company has a strong competitive position in the large pharmaceutical space (55% of revenues) and the small- to medium-sized (SMID) pharmaceutical client sector (45%). Longer term, S&P expects mid- to high-single-digit market growth due to underlying demand for pharmaceuticals, continued outsourcing, increasingly complex clinical trials, and expanding regulatory requirements. The ability to conduct global trials is an important factor in the increasingly complex clinical trial environment and provides a competitive advantage for scaled players (like Syneos) over smaller CROs because they are uniquely capable of executing larger, more complex trials. Syneos will be acquired by a consortium of private investment firm affiliates composed of Elliott Investment Management L.P. (Elliott), Patient Square Capital (Patient Square), and Veritas Capital (Veritas). S&P believes the number of drug approvals, including for biopharmaceuticals that are made by SMID biotech firms, will increase over the long run, which will benefit the commercial solutions business (24% of revenue) because these biotech companies typically lack commercialization infrastructure and need these services from companies like Syneos. However, this business can be volatile and unpredictable. Contracts are generally shorter, and it is heavily influenced by factors beyond Syneos's control such as whether or when a drug receives FDA approval and the size of clients' advertising budgets. Over 65% of revenue for the commercial solutions segment comes from offering a salesforce (e.g., sales representatives and medical science liaisons) to pharmaceutical companies, which is competitive and volatile. Another major risk all CROs face is cancellation risk. Syneos is exposed to contract cancellation due to external factors like customer consolidation or pipeline rationalizations. Most CRO contracts can be terminated by the customer upon 30-90 days' notice. It is common for CROs to have customer concentration; Syneos's top five customers generated 24% of total revenue during 2022. The company's turnaround story is ongoing, and bookings are improving, but still below replacement levels. Syneos has been addressing its recent operational challenges by adding industry veterans to its advisory and management team, increasing employee retention, improving clinical operations and delivery, and integrating and upgrading IT systems, which improved customer visibility and satisfaction. As a result, the company's bookings have improved to 0.9x in the second quarter of 2023 since its lowest point of 0.3x after the third quarter of 2022. While the recovery is ongoing, we still anticipate the company to finish 2023 with a book-to-bill modestly below 1.0x. Meanwhile, there have been some reports of cautiousness and delayed decision making across the CRO and commercialization space. S&P said, "Our expectation for modest growth between 1%-3% in 2024 is supported by the company's $9.6 billion backlog, the average contract length for its clinical solutions business of five to seven years, and a book-to-bill that was more than 1.2x for a few years before 2022. We anticipate a continued rebound in booking levels to help drive about 4%-6% growth in 2025, closer to longer-term industry growth rates." Although S&P expects a rebound in EBITDA margins, they still lag peers. S&P said, "We anticipate S&P Global Ratings-adjusted EBITDA will improve from its 2023 low to between 13%-14% in 2024 and 2025, gradually improving from the company's cost savings plan, including consolidating facilities and reducing back-office headcount. Still, in the near term we expect its margins will remain below its peers, which include IQVIA Holdings Inc. (about 23%) and ICON PLC (about 20%)." While S&P expects revenue growth and margins to improve, it expects leverage to remain high given financial sponsor ownership. Leverage will be high at 6.5x at close of acquisition. Financial sponsors typically follow an aggressive financial strategy that maximizes shareholder returns over debt reduction. Leverage often stays high either because of debt-financed acquisitions or dividends to shareholders. S&P said, "We believe the company will be focused on operational improvement over the next year but have incorporated some bolt-on acquisitions in our base case, beginning in 2025. We believe large acquisitions are unlikely because of potential dis-synergies. The rating incorporates the potential for debt-financed dividends, but we believe the company may still reduce leverage somewhat over the next two years through revenue growth and margin improvement. Given our view of the credit markets over the next two years, we do not think the company's owners will pursue a special dividend until it has shown a track record of growth and moves margins closer to industry peers. At that point, it could also consider returning to being a public company. As a result, we expect S&P Global Ratings-adjusted leverage of 5.5x-6.0x in 2024 and 5.0x-5.5x in 2025." S&P anticipates free operating cash flow (FOCF) will be constrained. The company's recovering operations, costs to achieve its cost savings plan, and high interest burden over the next 12-18 months will constrain FOCF. The cost savings plan, which the company expects to generate over 200 basis points (bps) of EBITDA margin improvement within the first three years after the transaction closes, is also expected to cost about $50 million over the first couple of years. S&P said, "This, coupled with our expectation for operational performance below historical levels and interest rates that we do not expect will decline by more than 100 bps next year, leads to our expectation of FOCF between $50 million-$100 million in 2024. The cash generation leads us to expect FOCF to debt between 2%-3% in 2024, improving to between 5%-7% in 2025 due to improving operations and lower expenses related to its cost savings initiatives." S&P said, "The positive outlook on Star Parent reflects our expectations that net awards will continue to improve from historically weaker awards over the past 12 months. It also incorporates our expectation that operational improvements will generate higher margins and improve cash flow generation in the next 12 months." S&P could raise its rating on Star Parent over the next 12 to 18 months if its book-to-bill continues to improve, revenue continues to grow and its productivity initiatives produce improving margins and FOCF such that: -- Its S&P Global Ratings-adjusted debt to EBITDA declines below 6.0x and S&P believes the company will adhere to financial policies that will maintain leverage below this level; and -- FOCF to debt improves to above 3%. S&P could revise its outlook to stable if Star Parent experiences a sudden reversal in business momentum (book-to-bill stagnates or worsens) or if: -- The company's leverage remains above 6.0x because of debt-financed acquisitions or dividends; and -- Free operating cash flow (FOCF) remains below 3%. SUNLAND MEDICAL: DIP Loan from Principal Street & Aberdeen OK'd --------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Texas, Dallas Division, authorized Sunland Medical Foundation and affiliates to use cash collateral and obtain postpetition financing, on an interim basis. The Debtors are permitted to obtain $2.7 million from Principal Street High Income Municipal Fund and Principal Street Partners LLC and abrdn Short Duration High Yield Fund and Aberdeen Standard Investments, Inc., the DIP Lenders/Purchasers. At the expiration of the Interim Order, the DIP Lenders/Purchasers, subject to entry of the Final Order in a form acceptable to the DIP Lenders/Purchasers, will purchase additional DIP notes, up to an aggregate amount of up to $14 million. Interest will accrue on the full amount of the Interim DIP Notes from the date of entry of the Interim Order through the Maturity Date at a simple rate per annum equal to 12%. Upon entry of the Final Order, the portion of the 2020 Bond Obligations held by the DIP Lenders/Purchasers totaling $21.250 million will be automatically added to the DIP Obligations, provided that the Roll-Up will remain subject to the priorities set forth in the DIP Orders. In particular, the Roll-Up will have priority of payment over the Prepetition Bond Obligations but subordinate to the Trustee Advance Obligations. The DIP Facility is due and payable through the earliest to occur of: 1. February 29, 2024, or such later date to which each of the DIP Lenders consents in writing in its sole discretion; 2. The occurrence of any "Event of Default" under the DIP Facility Documentation; provided, however, immediately upon written notice by the Required DIP Lenders to Debtor's counsel, counsel to any Official Committee of Unsecured Creditors, and the Office of the U.S. Trustee following the occurrence and during the continuance of any Event of Default, the DIP Facility will terminate without further notice, motion, hearing or action of any kind; 3. The entry of an order by the Bankruptcy Court approving (i) a motion seeking conversion or dismissal of the Bankruptcy Case, or (ii) a motion seeking appointment or election of a trustee, a responsible officer or examiner with enlarged powers relating to the operation of the Debtor's business, or if the Borrower files a motion or other pleading seeking such conversion, dismissal, or appointment unless otherwise consented to in writing by the Required DIP Lenders; 4. The expiration of the Interim DIP Order by its terms or upon its termination, vacation, modification, or recission (in each case without the written consent of the Required DIP Lenders), unless the Final DIP Order has been entered and become effective prior thereto; 5. If the Final DIP Order has not been entered by the Bankruptcy Court on or before the date that is 45 calendar days after the Petition Date unless otherwise consented to in writing by the Required DIP Lenders; 6. The consummation of a sale of a material portion of the Debtor's assets (either through chapter 11 plan or pursuant to section 363 of the Bankruptcy Code) unless otherwise consented to by the Required DIP Lenders; 7. The date on which the Debtor confirms a chapter 11 plan that is not in form and substance acceptable to the Required DIP Lenders, in their sole discretion; and 8. The effective date of a plan of reorganization confirmed by the Bankruptcy Court in the Bankruptcy Case. The Debtors are required to comply with these milestones: 1. Execution of DIP Facility Documentation – No later than 15 days following the Petition Date; 2. First Day Hearing and entry of the Interim DIP Order – No later than three calendar days after the Petition Date; 3. The Debtors' filing of bid and sale procedures motion for the sale of substantially all of the Debtor's assets – No later than September 6, 2023 (8 days after the Petition Date); and 4. Entry of the Final DIP Order – No later than 45 days after the Petition Date. Sunland Medical says a critical need exists for the Debtors to obtain funds to cover the operational, capital, and administrative needs of Sunland Medical's hospital, solely to the extent set forth under the budget and under the DIP Facility. UMB Bank N.A., the Bond Trustee, asserts that on January 1, 2020, the Public Finance Authority entered into (i) the Trust Indenture, dated as of such date, by and among the Issuer and UMB Bank and (ii) the Loan Agreement, dated as of such date, by and among the Issuer and Sunland Medical (as successor-by merger to Trinity Regional Hospital Sachse LLC). The Bond Trustee asserts that the bonds issued pursuant to the 2020 Trust Indenture and the Trustee Advance Obligations are secured by security interests in and liens on substantially all the real and personal property of Sunland Medical. Avoue Marchand Investments, Inc. asserts that on July 26, 2022, it entered into a Loan and Security Agreement with Sunland Medical. AMI asserts that the obligations arising under the AMI Loan Agreement are secured by first-priority security interests in and liens on Sunland Medical's accounts receivable and related assets. Pursuant to a settlement agreement entitled Second Amendment to Loan and Security Agreement and Loan Documents dated August 15, 2023, and Second Amended and Restated Promissory Note dated August 15, 2023, AMI agreed to, among other things and as a settlement for certain disputes and asserted defaults, Sunland Medical providing a wire transfer of 75% of the prior calendar week's eligible accounts receivable to AMI, with Sunland Medical transferring the remaining 25% to its operating accounts. Sandton Capital Solutions Master Fund V, L.P. asserts that on December 13, 2022, Sunland Medical entered into (i) the Loan Agreement, dated December 13, 2022, by and among Sunland Medical and Sandton and (ii) the Security Agreement, dated as of such date, and (iii) the Deed of Trust and Security Agreement by and among Sunland Medical, as leasehold mortgagor, Batsu Enterprises LLC, a Texas limited liability company, as fee mortgagor, and Sandton, as mortgagee, recorded in the Real Property Records of Dallas County on December 15, 2022, Document Number 202200315720, as amended by the First Amendment to Deed of Trust and Assumption Agreement by and among Sunland Medical, Batsu, and Sandton recorded in the Real Property Records of Dallas County on August 16, 2023, Document Number 202300164607. Sandton asserts that the obligations arising under the Sandton Loan Agreement are secured by first-priority security interests in and liens on certain Prepetition Collateral, including the Debtors' real property. Principal Street High Income Municipal Fund asserts that Sunland entered into the Trustee Advance Promissory Note in the original principal amount of $8 million dated as of April 21, 2023 and the Trustee Advance Promissory Note in the original principal amount of $2 million dated as of August 15, 2023 each of which are governed by the Trustee Advance Promissory Note Funding and Purchase Agreement, dated as April 21, 2023 which agreement was amended and restated pursuant to an Amended and Restated Trustee Advance Promissory Note Funding and Purchase Agreement dated August 15, 2023, by and among Sunland Medical, the Bond Trustee, and Principal. The Bond Trustee asserts that the obligations arising under the Trustee Advance Note Purchase Agreement are secured by the Prepetition Bond Trustee Liens on the Prepetition Collateral. Principal Street asserts that the Trustee Advance Obligations have priority of payment over the Prepetition Bond Obligations. The Prepetition Secured Parties assert that they are parties to (i) the Intercreditor and Subordination Agreement dated as of July 26, 2022, by and among the Bond Trustee and AMI and (ii) the Intercreditor and Subordination Agreement dated as of December 13, 2022, by and among the Bond Trustee and Sandton. As adequate protection of the Prepetition Secured Parties' interests in the cash collateral, the Bond Trustee, AMI, and Sandton will continue to have valid, binding, enforceable, and perfected additional and replacement mortgages, pledges, liens, and security interests in all DIP Collateral. As additional adequate protection for any Diminution in Value, the Prepetition Secured Parties will receive a superpriority-expense claim allowed under section 507(b) of the Bankruptcy Code. The Debtors agree that failure to materially comply with these milestones will constitute an Event of Default, unless any such conditions have been waived, modified, or extended by (a) the DIP Lenders/Purchasers, but solely with the consent of Sandton, or (b) the Court: (i) Deadline to file bid procedures papers: September 6, 2023 (8 days after the Petition Date); (ii) Deadline to solicit bids: October 12, 2023 (45 days after the Petition Date); (iii) Deadline to solicit overbids: November 13, 2023 (77 days after the Petition Date); (iv) Deadline for Auction: November 15, 2023 (79 days after the Petition Date); (v) Deadline for Sale Hearing: November 29, 2023 (93 days after the Petition Date); and (vi) Deadline for Change of Ownership: January 29, 2024 (154 days after the Petition Date). These events constitute an "Event of Default": (i) The Debtors' failure to obtain the Final Order in form and substance reasonably satisfactory to the DIP Lenders/Purchasers within 45 days of the Petition Date; (ii) Any breach by the Debtors of any provision of the DIP Orders; (iii) Failure of any representation or warranty to be true and correct in all material respects (or, to the extent qualified by materiality or material adverse effect, in all respects) when made; (iv) Breach or noncompliance with the covenants in the DIP Note Purchase Documents (subject to any applicable cure periods); (v) Filing of any motion by the Debtors seeking to obtain credit or incur indebtedness, or the obtaining of credit and incurrence of indebtedness, by the Debtors that is: (i) secured by a security interest, mortgage, or other lien on all or any portion of the collateral that is equal or senior to any security interest, mortgage, or other lien in favor of the DIP Lenders/Purchasers described in the DIP Orders, or (ii) entitled to administrative-priority status that is equal or senior to the DIP Facility (other than the Carve-Out) described in the DIP Orders; (vi) Institution of any judicial proceeding by the Debtor seeking to challenge the validity of any portion of the DIP Note Purchase Documents, the DIP Obligations, or the applicability or enforceability of same or that seeks to void, avoid, limit, subordinate, or otherwise adversely affect any security interest created by the DIP Note Purchase Documents; (vii) Reversal, vacatur, or modification (without the consent of the DIP Lenders/Purchasers) of the DIP Orders; (viii) Dismissal of the Chapter 11 Cases or conversion of any such cases to chapter 7 cases, or any action by the Debtors seeking to dismiss the Chapter 11 Cases without the express prior written consent of the DIP Lenders/Purchasers; and (ix) Any disruption of the business operations of any Debtors that has a material adverse effect. A final hearing on the matter is set for September 18, 2023 at 10 a.m. A copy of the order and the Debtor's budget is available at https://urlcurt.com/u?l=Gk4FFN from PacerMonitor.com. The Debtor projects total operating disbursements, on a weekly basis, as follows: $912,000 for the week ending September 3, 2023; $436,000 for the week ending September 10, 2023; $289,000 for the week ending September 17, 2023; and $534,000 for the week ending September 24, 2023. About Sunland Medical Foundation Sunland Medical Foundation is a not-for-profit, 32-bed, community-focused acute care hospital providing care to the residents of Sachse, Murphy, Wylie, Rowlett, Garland, Plano, Richardson, and surrounding communities. Sunland Medical Foundation and certain of its affiliates sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Lead Case No. 23-80000) on August 29, 2023. In the petition signed by Jonathan Nash, chief restructuring officer, Sunland Medical disclosed up to $100 million in assets and up to $500 million in liabilities. Judge Michelle V. Larson oversees the case. McDermott Will & Emery LLP represents the Debtor as legal counsel, Meadowlark Advisors, LLC as financial advisor, and Stretto, Inc., the claims agent. SUNLAND MEDICAL: Trinity Regional Enters Chapter 11 Bankruptcy -------------------------------------------------------------- Trinity Regional Hospital Sachse, the only acute care hospital in Sachse, Texas, announced a financial restructuring plan aimed at securing the hospital’s long-term viability and further enhancing the patient quality of care. Sunland Medical Foundation and 4750 GHW Bush Land Holdings LLC, owners of Trinity Regional Hospital, sought Chapter 11 bankruptcy protection. "We firmly believe that this financial restructuring will pave the way for a brighter future for Trinity Regional Hospital Sachse. It is a calculated move that aligns with our vision of continual growth and maintaining our position as a healthcare leader in the region." – Jon Nash, Chief Restructuring Officer." The Hospital said its commitment to delivering world-class medical care remains unwavering. Trinity recently completed construction of a state-of-the-art Intensive Care Unit (ICU) that will be supported by physicians from Pulmonary Critical Care Professionals (PCCP). The ICU and the purchase of the land surrounding the hospital highlight our continued investment in expanding services for the growing needs of the local community. The hospital is planning the opening of a Catheterization Laboratory before year’s end, and Trinity Hospital will be part of the Southwestern Health Resources Care Organization on January 1, 2024. This financial restructuring will further support our growth strategy and enable us to explore new avenues for enhancing patient experience and healthcare outcomes. "This restructuring represents a critical phase in our hospital's journey, with the ultimate goal of emerging stronger and more agile. By addressing our financial framework, we are securing the foundation upon which we will continue to build a healthier community," said Cooper Crouse, CEO. Planned Sale Bloomberg News reports that Trinity Regional Hospital Sachse filed for bankruptcy with plans to sell itself just two years after opening. The hospital is in default on nearly $70 million of municipal bonds issued in 2020, according to data compiled by Bloomberg. Hospitals -- particularly those in rural areas -- have suffered tremendously in recent years as they contend with higher labor costs and staffing shortages exacerbated by the pandemic. About Trinity Regional Hospital Sachse Trinity Regional Hospital Sachse is a full-service hospital and emergency room near Dallas, Texas. Trinity Regional Hospital Sachse is a not-for-profit, 32 bed, community-focused acute care hospital providing care to the residents of Sachse, Murphy, Wylie, Rowlett, Garland, Plano, Richardson, and surrounding communities. Owners of the hospital, Sunland Medical Foundation and 4750 GHW Bush Land Holdings LLC sought Chapter 11 protection (Bankr. N.D. Tex. Lead Case No. 23-80000) on Aug. 29, 2023. The Debtors estimated $50 million to $100 million in assets and $100 million to $500 million in liabilities as of the bankruptcy filing. The Hon. Michelle V. Larson is the case judge. The Debtors tapped McDERMOTT WILL & EMERY LLP as counsel; and MEADOWLARK ADVISORS, LLC, as financial advisor. STRETTO INC. is the claims agent. SUPERTRANSPORT LLC: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Supertransport, LLC f/k/a Mueller Automobile Transport, LLC 605 Madison Street Pleasant Hill, MO 64080 Chapter 11 Petition Date: September 6, 2023 Court: United States Bankruptcy Court Western District of Missouri Case No.: 23-41241 Debtor's Counsel: Erlene W. Krigel, Esq. KRIGEL & KRIGEL, PC 4520 Main Street, Suite 700 Kansas City, MO 64111 Tel: 816-756-5800 Fax: 816-756-1999 Total Assets: $660,200 Total Liabilities: $1,966,322 The petition was signed by Marcus Mueller as member. A full-text copy of the petition containing, among other items, a list of the Debtor's 20 largest unsecured creditors is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/HBBQNCQ/Supertransport_LLC__mowbke-23-41241__0001.0.pdf?mcid=tGE4TAMA TV AZTECA: Will Negotiate With Bondholders After Scolded by Judge ----------------------------------------------------------------- Steven Church of Bloomberg News reports that TV Azteca SAB agreed to negotiate with US bondholders owed $400 million after a US judge warned the second biggest broadcaster in Mexico that it could be forced to participate in a bankruptcy case in New York. US Bankruptcy Judge Lisa G. Beckerman told the company that it was obvious to her that TV Azteca had to restructure its debt, despite strong resistance from the company. TV Azteca opposes a US bankruptcy and has used court rulings in Mexico to try to block bondholders from collecting on the defaulted bonds. About TV Azteca SAB de C.V. TV Azteca SAB is a Mexican multimedia conglomerate. TV Azteca SAB sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 23-10385) on March 20, 2023. Petitioners' Counsel: Abid Qureshi, Esq. AKIN GUMP STRAUSS HAUER & FELD LLP One Bryant Park New York NY 10036 Tel: 212-872-1000 Email: aqureshi@akingump.com UNITED ENGINEERS: Wins Cash Collateral Access Thru Sept 30 ---------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, authorized United Engineers, Inc. to use cash collateral on an interim basis in accordance with the budget, with a 7% variance, through September 30, 2023. The court said all representations, stipulations, rights and adequate protection granted to the Secured Lender under the First Interim Cash Collateral Order will continue under the Second Interim Cash Collateral Order and remain in full effect. As previously reported by the Troubled Company Reporter, Plains Capital Bank, holds liens on substantially all of the Debtor's assets, including accounts receivable and cash. The PCB Loan is secured by a lien on substantially all of the Debtor's assets, including, but not limited to cash, accounts, and accounts receivable. As of the Petition Date, the outstanding balance owed with respect to PCB Loan is approximately $560,500. As adequate protection of its interest in the Collateral and cash collateral, PCB was granted, effective as of the Petition Date, valid and automatically perfected replacement liens co-extensive with and in the same priority as its pre-petition liens in and upon all of the assets of the Debtor. To the extent the liens and security interests granted prove insufficient to secure any diminution in value of PCB's interest in the Collateral and cash collateral resulting from the Debtor's use of cash collateral, PCB was granted, for its benefit, an administrative priority claim pursuant to 11 U.S.C. Section 507(b) to secure any such diminution in value. The Replacement Liens are subject and subordinate to a carve-out of funds for: (i) all fees required to be paid to the Clerk of the Bankruptcy Court, (ii) a fees required to be paid to the Office of the United States Trustee pursuant to 28 U.SC. Section 1930(a), if any, and (iii) all fees and expenses of the Subchapter V Trustee approved by the Court and not in an amount in excess of $10,000; provided, however, the Replacement Lines of PCB will only be subject to the payment of such fees and expenses to the extent they are incurred prior to the Termination Date. The Debtor will maintain insurance on all tangible assets of the estate and will provide written evidence of same to the IRS, the United States Trustee, and PCB, no later than September 7, 2023. A final hearing on the matter is set for September 29, 2023 at 9 a.m. A copy of the court's order and the Debtor's budget is available at https://urlcurt.com/u?l=BcKYUj from PacerMonitor.com. The Debtor projects $190,733 in total expenses for the period ending September 15, 2023. About United Engineers, Inc. United Engineers, Inc. provides architectural, engineering, and related services. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 23-33166) on August 19, 2023. In the petition signed by Kefelegne Tesfaye, vice president, the Debtor disclosed $2,356,290 in assets and $909,388 in liabilities. Judge Jeffrey P. Norman oversees the case. Melissa A. Haselden, Esq., at Haselden Farrow PLLC, represents the Debtor as legal counsel. VESTTOO LTD: Cannot Pay Compensation to Fired Employees ------------------------------------------------------- CTech reports that the Delaware bankruptcy court ruled that Vesttoo can continue to pay the salaries, benefits and expenses of its employees, but is currently not allowed to make any compensation payments. Vesttoo, which laid off around 75% of its workforce last month, received approval to make payments of over $2.78 million, but was told it currently can't spend an additional $2.2 million related to compensation payments. Due to the bankruptcy proceedings, the Israeli fintech company needs to receive approval from the court to make any payments. The judge determined that Vesttoo needs to provide more evidence to support paying fired staff, despite Vesttoo's lawyer explaining that compensation is required under Israeli law. In an updated statement to the court, interim CEO Ami Barlev said that CEO Yaniv Bertele and CPO Alon Lifshitz, who were both removed from their positions by the Board, would not receive any payments. However, that wasn't enough to convince the court to release funds required to pay fired staff. Last week, Barlev said that Vesttoo's revenue reached $110 million in 2022. Barlev also stated that Vesttoo's EBIDTA in 2022 was estimated at around $60 million. According to Barlev, the company was planning on embarking on a funding round at a $1.5-2 billion valuation prior to the outbreak of the fraud scandal. Vesttoo provides insurers with access to so-called insurance-linked securities -- an alternative form of reinsurance. These securities may be backed by collateral in the form of letters of credit. The company has conducted internal and external analysis of events leading up to the first report of a fraudulent letter of credit that was used in many transactions. Led by Mouro, Vesttoo last raised $80 million at a $1 billion valuation last October. About Vesttoo Ltd. Vesttoo Ltd. is a technology-driven collateralized reinsurance provider in Tel Aviv, Israel. It connects the insurance industry with the capital markets by combining AI-powered technology with expertise in data science, insurance, and finance. Vesttoo and its affiliates sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. (Lead Case No. 23-11160) on August 14 and 15, 2023. The Honorable Bankruptcy Judge Mary F. Walrath oversees the case. The Debtors tapped DLA Piper, LLP (US), as legal counsel and Kroll, LLC as financial advisor. Epiq Corporate Restructuring, LLC is the claims and administrative agent. VISHAY INTERTECHNOLOGY: S&P Rates New Sr. Convertible Notes 'BB+' ----------------------------------------------------------------- S&P Global Ratings assigned its 'BB+' issue-level and '4' recovery rating to the new $600 million seven-year senior unsecured convertible notes proposed by discrete semiconductor and passive electronic component provider Vishay Intertechnology Inc. (Vishay). These ratings match those of the existing convertible notes due in June 2025. Vishay intends to use most of the proceeds to repurchase a portion of the existing convertible notes, repay the utilization of its senior secured revolving credit facility (RCF), and cover the cost of capped call transactions on underlying common equity for the new convertible notes and other transaction fees. S&P therefore expects a minimal impact on leverage from this transaction with pro forma leverage at about 0.3x compared to our downside threshold of 2x. S&P said, "Our 'BB+' issuer credit rating and stable outlook are unchanged. We expect revenue growth to be roughly flat in 2023 with weaker demand in computing and telecommunications, especially in Asia, and excess inventory digestion in the industrial end market being offset by strong demand in the automotive end market supported by electrification and autonomy. At the same time, we expect cost inflation and investments in silicon carbide and gallium nitride product development to result in slightly lower EBITDA margins at around 21% from about 23% in 2022. However, we expect leverage to remain at about 0.3x by year-end which reflects Vishay's modest amount of pro forma S&P Global Ratings-adjusted debt (net of accessible cash). "We expect secular demand tailwinds in the automotive and industrial markets, as well as increasing capacity from ongoing facility investments and expanding supplier partnerships, to support a return to at least low- to mid-single-digit percent revenue growth from 2024. In addition to EBITDA margins of at least 20%, we expect leverage to remain below 0.5x. This is further supported by good free operating cash flow generation of above $100 million, albeit at lower than historical levels due to elevated capital expenditures." ISSUE RATINGS--RECOVERY ANALYSIS Key analytical factors -- S&P's 'BB+' issue-level rating on Vishay's senior unsecured convertible notes is based on a '4' recovery rating. This reflects an expectation for average (30%-50%; rounded estimate: 40%) recovery in the event of a payment default. -- S&P notes that continued increases in the company's total borrowing capacity could put downward pressure on its recovery ratings on the company's senior unsecured debt. -- S&P's simulated scenario assumes a payment default in 2028, arising from a failure to obtain critical design wins, challenges in scaling capacity in new products, and persistent weakness in automotive and industrial end markets. -- S&P values the company as a going concern, reflecting its strong market position in certain product areas and diversified intellectual property portfolio. Simulated default assumptions -- Year of default: 2028 -- Emergence EBITDA after recovery adjustments: about $224 million -- EBITDA multiple: 5x Simplified waterfall -- Net enterprise value (after 5% administrative costs and priority pension claims): about $970.5 million -- Valuation split (obligors/nonobligors): 25%/75% -- Value available for senior secured debt claims: about $715.5 million -- Senior secured debt claims*: about $661.5 million -- Value available to unsecured claims: about $309 million -- Senior unsecured debt claims*: about $697.5 million --Recovery expectations§: 40% *All debt amounts include six months of prepetition interest. Revolving credit facility assumed 85% drawn at default. §Rounded down to the nearest 5%. VOYAGER AVIATION: Wins Interim Cash Collateral Access ----------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York authorized Voyager Aviation Holdings, LLC and affiliates to use cash collateral on a final basis in accordance with the budget. The Debtors require the use of cash collateral to operate their business and meet their working capital needs. On May 9, 2021, VAH and Voyager Finance co-issued $162.708 million aggregate principal amount of 8.500% Senior Secured Notes due May 9, 2026 pursuant to an indenture by and among VAH, Voyager Finance, the Secured Notes Guarantors and Wilmington Trust, National Association, as trustee and collateral agent. On October 21, 2021, VAH and Voyager Finance co-issued an additional $250 million of notes under the Secured Notes Indenture. As of June 30, 2023, approximately $412 million in aggregate principal amount of Secured Notes was outstanding. To support the acquisition and leasing of aircraft, the aircraft owning the Debtor entities incur debt under individual financing arrangements. While specific terms vary, the obligations under the Aircraft Financing Facilities generally are secured by liens on all of the aircraft owning entities' assets -- including the relevant aircraft, the related leases, cash, bank accounts, contracts, and certain receivables with respect to such aircraft -- and a pledge of all equity interests in the borrower thereunder. Certain of the Aircraft Financing Facilities provide for full or limited recourse unsecured guarantees by VAH. As adequate protection for the use of cash collateral, the Debtors are providing the Prepetition Secured Parties with adequate protection in the form of, among other things: Adequate Protection Replacement Liens, Adequate Protection Claims, payment of certain professional fees, and payment of certain other obligations under the Aircraft Financing Facilities as and when due. A copy of the final order and the Debtor's budget is available at https://urlcurt.com/u?l=zvOn57 from PacerMonitor.com. The Debtor projects total expenses, on a weekly basis, as follows: $505,000 for the week ending September 15, 2023; $847,000 for the week ending September 22, 2023; and $378,000 for the week ending September 29, 2023. About Voyager Aviation Holdings, LLC Voyager Aviation Holdings, LLC is a privately held aviation investment firm and commercial aircraft leasing company. The Debtor and affiliates sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. N.Y. Lead Case No. 23-11177) on July 27, 2023. In the petition signed by Michael Sean Ewing, chief financial officer, the Debtor disclosed up to $10 billion in both assets and liabilities. Judge John P. Mastando III oversees the case. The Debtors tapped FTI CONSULTING, INC. as financial advisor, Greenhill & Co., LLC as investment banker and financial advisor, Kurtzman Carson Consultants LLC as claims and noticing agent, KPMG LLP as tax restructuring advisor, and Vedder Price LLP as special merger and acquisition and aircraft level financing counsel. WATAUGA FAMILY: Wins Interim Cash Collateral Access --------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Texas, Fort Worth Division, authorized Watauga Family Dentistry, PLLC to use cash collateral on an interim basis in accordance with the budget. As adequate protection for the use of cash collateral, the U.S. Small Business Administration is granted replacement lien on all post-petition cash collateral and post-petition acquired property to the same validity, extent, and priority it possessed as of the Petition Date. As adequate protection for use of cash collateral, the Debtor will pay Small Business Administration $850 per month. The Adequate Protection Payment will be paid on or before the 15th day of each month, beginning September 15, 2023, and will continue each month until confirmation of the plan. The SBA will provide payment instructions to the Debtor. A final hearing on the matter is set for September 11, 2023 at 2:30 p.m. A copy of the court's order and the Debtor's budget is available at https://urlcurt.com/u?l=CLA8J2 from PacerMonitor.com. The Debtor projects $65,000 in cash receipts and $62,242 in cash disbursements for 30 days. About Watauga Family Dentistry, PLLC Watauga Family Dentistry, PLLC sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Tex. Case No. 23-42515-elm11) on August 28, 2023. In the petition signed by William Oliver, director, the Debtor disclosed up to $500,000 in assets and up to $1 million in liabilities. Robert C Lane, Esq., at The Lane Law Firm, represents the Debtor as legal counsel. WAYFORTH LLC: Seeks Cash Collateral Access ------------------------------------------ WayForth, LLC asks the U.S. Bankruptcy Court for the Eastern District of Virginia, Richmond Division, for authority to use cash collateral and provide adequate protection. The Debtor sustained severe financial difficulties caused by labor markets, combined with inflationary forces. Initially, the Debtor sought a merger and was in advanced negotiations with a private equity group in which the transaction would have provided significant equity capital as well as led to the Debtor combining with a larger, profitable entity. The merger collapsed when the private equity group decided not to move forward with the transaction. As a consequence, the Debtor was faced with an imminent cash crisis and very limited options. After the merger process terminated, the Debtor's management reviewed a number of strategic options, including: (a) selling the company; (b) partnering in new structures or combining with commercial and operating partners; (c) investing additional equity capital; and (d) various restructuring options to reduce the cost structure and footprint of the business. Ultimately, the decision was made to wind down all markets outside of the Richmond market, as well as most corporate functions, as soon as reasonably possible. In the past 30 days, the Debtor closed all of its operations except those in the Richmond market. The Debtor has also done its best to ensure employees are paid for time worked, clients can retrieve items in storage, and leased trucks and other assets can be returned to their owners in a safe and orderly fashion. Prior to the Petition Date, the Debtor executed a Promissory Note Purchase Agreement, dated August 16, 2023, pursuant to which the Debtor made the following notes: a. Secured Promissory Note dated August 16, 2023 held by LE Livible Investments, LLC in the amount of $175,000; b. Secured Promissory Note dated August 16, 2023 held by HF Direct Investments Pool, LLC in the amount of $175,000; c. Secured Promissory Note dated August 31, 2023 held by LE Livible Investments, LLC in the amount of $430,000; and d. Secured Promissory Note dated August 31, 2023 held by HF Direct Investments Pool, LLC in the amount of $430,000. To ensure its continued access to the Prepetition Collateral (including Cash Collateral) during the case, the Debtor proposes to provide the Prepetition Secured Parties as adequate protection against the postpetition diminution in value of their interest in the Prepetition Collateral (i) first priority senior liens on all unencumbered assets of the Debtor and second priority junior liens on all encumbered assets of the Debtor pursuant to 11 U.S.C. section 361(2) and (ii) superiority administrative expense claims under section 507(b) of the Bankruptcy Code. The Prepetition Secured Parties have expressly consented to Debtor's use of the Prepetition Collateral (including Cash Collateral) pursuant to the terms set forth therein and in the Order. A copy of the motion is available at https://urlcurt.com/u?l=eeqaOg from PacerMonitor.com. About WayForth, LLC WayForth, LLC delivers personalized moving and move management services for life and business in Central Virginia. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Va. Case No. 23-33000) on September 1, 2023. In the petition signed by Craig Shealy, manager, the Debtor disclosed up to $10 million in both assets and liabilities. WESTPACK HOLDINGS: Seeks Cash Collateral Access ----------------------------------------------- Westpack Holdings, Inc. asks the U.S. Bankruptcy Court for the Western District of Michigan for authority to use cash collateral and provide adequate protection. The Debtor requires the use of cash collateral to sustain its operations and preserve its assets for the benefit of the estate and the creditors. The Debtor's secured creditors The Huntington National Bank and U.S. Small Business Administration. The Debtor has various operating expenses that are essential to its business. These operating expenses total approximately $190,000 per month prior to debt service and professional fees. The Debtor is indebted to Huntington National Bank in the amount of $499,431. The Debtor maintains its deposit accounts with Huntington. Debtor will continue to maintain all its deposit and checking accounts with Huntington. Huntington has an All Asset UCC-1 Filing against the Debtor and a mortgage on Richard and Tisha Wilson's residence, UCC-1. The Debtor is indebted to U.S. Small Business Administration/EIDL in the amount of $1.282 million. The SBA/EIDL has a second position All Asset UCC-Filing against the Debtor, UCC-1. The Debtor has granted a security interest in its personal property to Huntington and the SBA/EIDL. As adequate protection for the use of cash collateral, the Debtor offers the following under 11 U.S.C. Sections 361 and 363 concerning any diminution in pre-petition collateral: Huntington will retain its security interest and liens on all assets in its current rank, order, and priority. The Debtor grants Huntington a replacement lien and security interest in all post petition assets of the Debtor of the same type, category, and priority constituting each secured creditor's pre-petition collateral. Huntington is adequately protected if it retains all of its security interests in post-petition assets. Huntington will be further entitled to receive ongoing monthly interest payments in the amount of $4,657 for the month of September 2023, and continuing each month until the Subchapter V Chapter 11 Plan is confirmed. The SBA/EIDL is being treated as secured up to approximately $100,000. The Debtor's projections reveal that by the week ending December 2, 2023, Huntington and the SBA/EIDL’s collateral positions in assets, other than accounts receivable, will be maintained and are not expected to deteriorate, based on a stalking horse offer and executed APA in the amount of $800,000. The Debtor has a Stalking Horse APA and assets will be turned into cash and ultimately the secured creditor's collateral position in the accounts receivable will not deteriorate. The overall cash position will return to the position as of the filing date. A copy of the motion is available at https://urlcurt.com/u?l=N6X3oH from PacerMonitor.com. About Westpack Holdings, Inc. Westpack Holdings, Inc. is a family owned and operated company that supplies packaging to Michigan industries. In the petition signed by Richard Wilson, president, the Debtor disclosed $869,540 in assets and $2,159,188 in total liabilities. Judge Scott W. Dales oversees the case. A. Todd Almassian, Esq., at Keller & Almassian, PLC, represents the Debtor as legal counsel. WEWORK INC: Hires Restructuring Advisers to Prevent Bankruptcy -------------------------------------------------------------- Reshmi Basu of Bloomberg News reports that WeWork is rounding up advisers for help with restructuring as it struggles with a heavy debt load and poor financial performance, according to people with knowledge of the matter. The co-working giant has hired real estate adviser Hilco Global, once again tapped consultant Alvarez & Marsal, and re-engaged law firm Kirkland & Ellis for advice on its options, according to the people, who spoke on the condition of anonymity because the matter is private. The company is seeking to avoid a Chapter 11 bankruptcy filing and restructure its debts out of court, one of the people said. WeWork's ability to stave off bankruptcy will depend in large part on whether it can terminate or renegotiate a substantial number of its leases in more expensive markets, the people said. The company earlier this month told investors there is "substantial doubt" about its ability to stay in business. "We will continue to invest in our product offerings while simultaneously taking necessary steps to reduce rent and tenancy costs. Our members remain our priority and, regardless of any near-term actions we may take, we will continue to operate and serve them for the long term," a representative for WeWork said in a statement. Representatives for Hilco, Alvarez, and Kirkland didn't respond to requests for comment. A few years ago, WeWork was one of America's most valuable start-ups. Co-founder Adam Neumann aspired to remake the way people work, and the company's mission statement included the imperative to "elevate the world's consciousness." Neumann also sought to build a communal living business, WeLive, and an education business, WeGrow. The company raised billions of dollars and signed longer-term leases on buildings around the world, planning to profit from leasing the space to clients short term. But WeWork's disastrous effort in going public in 2019 resulted in Neumann's ouster as chief executive officer. The company ultimately went public in 2021 through combining with a special purpose acquisition company. Its shares have plunged 97% in the last 2022, and its debt has fallen to deeply distressed levels, just months after it reached a sweeping debt-cutting deal with some of its creditors. The company has continued to struggle as many people have persisted in working from home after the pandemic, cutting into demand for office space. More than a third of desks in offices globally are unoccupied all week, a report said this week. WeWork is focusing over the next year on cutting rental costs, negotiating more favorable leases, boosting revenue, and raising money, it said in a statement earlier this month. Earlier this month, WeWork added four restructuring specialists – Paul Aronzon, Paul Keglevic, Elizabeth LaPuma, and Henry Miller – to its board. About WeWork Inc. New York, NY-based WeWork Inc. (NYSE: WE) -- wework.com -- is a global flexible workspace provider, serving a membership base of businesses large and small through its network of 779 Systemwide Locations, including 622 Consolidated Locations as of December 2022. WeWork reported a net loss of $2.29 billion for the year ended Dec.31, 2022, a net loss of $4.63 billion for the year ended Dec. 31, 2021, a net loss of $3.83 billion in 2020, and a net loss of $3.77 billion in 2019. As of Dec. 31, 2022, the Company had $17.86 billion in total assets, $21.31 billion in total liabilities, and a total deficit of $3.43 billion. [*] David Curtiss Joins Schulte Roth's Securities Group in N.Y. --------------------------------------------------------------- Schulte Roth & Zabel on Sept. 6, 2023, announced the addition of David Curtiss as a partner in the M&A and Securities Group in New York. Mr. Curtiss has extensive experience handling a wide variety of capital markets transactions, representing sponsors, companies, bondholders and underwriters in private preferred equity and PIPE investments, in and out-of-court restructuring transactions, exchange offers, leveraged buyouts, initial public offerings, follow-on equity offerings, high-yield debt offerings, SPAC transactions and investment-grade debt offerings. "David will have an immediate impact on our securities capabilities, including in PIPEs, converts and 144A transactions, as well as across our Investment Management, Shareholder Activism, M&A and Business Reorganization practices. We're very excited for him to join the team," said Ele Klein, co-chair of the M&A and Securities and Shareholder Activism groups. "David has a high level of sophisticated experience that will be a great benefit to a wide range of our private capital clients," said David Efron, Schulte's co-managing partner. "In addition, his background in restructurings, chapter 11 cases, exchange offers and advising creditors and debtors will further bolster our Special Situations team." "Schulte is well respected in the industry for its sophisticated and cutting-edge client base, and its collaborative and focused work on their behalf," said David Curtiss. "I'm thrilled to be part of the team." Mr. Curtiss' move to Schulte is a continuation of significant focused lateral growth for the firm, which has recently included John Nowak (Litigation), Julia Beskin (Litigation), Christopher Gerson (Litigation), Timothy Gilman (Litigation) and Dan Roman (Tax). Mr. Curtiss graduated from Gettysburg College with a B.A. in Political Science and obtained his J.D. from American University Washington College of Law. About Schulte Roth + Zabel With a firm focus on private capital, Schulte Roth & Zabel LLP -- http://www.srz.com/-- comprises legal advisers and commercial problem-solvers who combine exceptional experience, industry insight, integrated intelligence and commercial creativity to help clients raise and invest assets and protect and expand their businesses. The firm has offices in New York, Washington, D.C. and London, and advises clients on investment management, corporate and transactional matters, and provides counsel on securities regulatory compliance, enforcement and investigative issues. Schulte's practices include: antitrust; bank regulatory; bankruptcy & creditors' rights litigation; blockchain technology & digital assets; broker-dealer regulatory & enforcement; business reorganization; complex commercial litigation; cybersecurity & data privacy; distressed debt & claims trading; distressed investing; education law; employment & employee benefits; energy; environmental; estate planning; estate & trust administration; environmental, social and governance (ESG); family law; finance & derivatives; financial institutions; hedge funds; insurance; intellectual property, sourcing & technology; investment management; litigation; litigation finance; mergers & acquisitions; nonprofits; philanthropic planning; PIPEs; private credit, distressed investing & direct lending; private equity; real estate; real estate capital markets & REITs; real estate litigation; regulated funds; regulatory & compliance; securities & capital markets; securities enforcement; securities litigation; securitization; shareholder activism; structured finance & derivatives; tax; trading agreements; and white collar defense & government investigations. [*] Eisner Advisory Group Names 21 New Partners ----------------------------------------------- Eisner Advisory Group LLC, one of the world's largest business consulting firms, on Sept. 6 disclosed that it has admitted 21 new partners effective August 1, 2023. "We are proud and excited to welcome our new partners. Each one is an accomplished professional whose unique perspective, diverse expertise and client-centric mindset will help EisnerAmper continue to unlock potential," said Eisner Advisory Group CEO Charly Weinstein. "These leaders regularly demonstrate outstanding client service and commitment. The entire EisnerAmper partnership joins me in congratulating them on this achievement." Adeola Akinrinade Ms. Akinrinade is a partner in the Financial Advisory Services Group and is based in the New York, NY, office. She has over 15 years of expertise providing financial and strategic advisory services, focusing on mergers and acquisitions, financing, restructurings and bankruptcies. Ms. Akinrinade works with clients across a wide range of industries including consumer, retail, industrial, energy and media. Benjamin Aspir Mr. Aspir is a tax partner in the firm's Private Client Services Group and a member of the firm's National Tax Group, based in the Iselin, NJ, office. He has over 15 years of client experience, providing tax consulting, planning and compliance services to high-net-worth individuals and closely held businesses. Bill Bodner Mr. Bodner is a partner in the Cybersecurity Risk Assurance Group with nearly 15 years of experience. Based in the Minneapolis, MN, office, he assists clients in the medical, SaaS, insurance, government and outsourced development industries with navigating compliance requirements and numerous security and privacy compliance frameworks. Georgetta Brown Ms. Brown is a partner and member of EA RESIG LLC, with over 20 years of accounting experience. Based in the New York, NY, office, he manages accounting and administration functions for real estate private equity funds and related entities as well as provides and manages daily accounting and reporting functions for private equity real estate funds, co-investment entities and feeder funds. Lisa Cappiello Ms. Cappiello is a tax partner in the firm's Private Client Services Group, working with both the West Palm Beach, FL, and New York, NY, offices. She brings over 25 years of experience to her clients, providing tax consulting and compliance services to high-net-worth individuals, trusts, family offices, corporate executives and pass-through entities. Christopher Fasano Mr. Fasano is a partner and member of the firm's Private Client Services Group, based in the Long Island, NY, office. He has over 15 years of public accounting experience, primarily providing accounting, advisory and tax services to closely held businesses and their owners. Lauren Fazzari Ms. Fazzari is a partner in the Audit Services Group, based in the Long Island, NY, office. She has over 15 years of experience in audit, quarterly review and acquisition-related services. Lauren also provides audit and consulting services to employee benefit plans, including 401(k), profit-sharing and defined benefit plans. Paul A. Gabriele Mr. Gabriele is a tax partner in the Private Client Services and Life Sciences and Technology Groups, based in the Fort Lauderdale, FL, office. He has over 10 years of experience providing tax compliance and consultative planning, valuation, research and development, and cloud accounting services to startups, private businesses and individuals. Eugene Katsman Mr. Katsman is an audit partner in the firm's Financial Services Group, based in the New York, NY, office. With over 15 years of audit and accounting experience, he primarily provides services to private equity funds, hedge funds, funds of funds, broker-dealers and investment advisors. Mr. Katsman also has experience in the manufacturing and distribution, software and technology industries. Arthur Khaimov Mr. Khaimov is a tax partner in the firm's Real Estate Group and is based in the New York, NY, office. He has over 15 years of experience providing tax consulting and compliance services to a broad range of real estate and corporate clients, including major public and private equity REITs, mortgage REITs, real estate private equity companies and real estate lenders. Albina Kurayeva Ms. Kurayeva is a partner and a member of the firm's Audit Services Group, based in the New York, NY, office. With over 20 years of public and private accounting experience -- including Sarbanes-Oxley rules and regulations -- she provides services primarily to manufacturing and distribution companies, retail, technology, media and entertainment, health care, registered broker-dealers and registered investment advisors, and employee benefit plans. Yanelys Marx Ms. Marx is a tax partner in the firm's Real Estate Services Group, based in the Miami, FL, office. She has over 10 years of experience specializing in closely held businesses and high-net-worth individuals, assisting with both federal and state tax compliance issues. Ms. Marx also advises clients on various tax issues, including sales of assets, choice of entity and like-kind exchanges. Brian May Mr. May is a partner with more than 15 years of experience in the accounting industry. As the leader of the firm's Fort Myers, FL, office, Brian focuses on leading his team, growing the firm, and providing tax, accounting and consulting services for a variety of individual and business clients. Thomas Murdoch Mr. Murdoch is an audit partner in the firm, based in the New York, NY, office. Thomas specializes in financial statement audits. His expertise focuses on the financial services industry, primarily serving private equity clients as well as hedge funds and funds of funds. David Rackman Mr. Rackman is a partner in the firm's Real Estate Private Equity Group. Based in the Long Island, NY, office, he has nearly 10 years of experience in the tax aspects of partnerships and funds. He provides tax compliance, planning and advisory services to high-net-worth individuals and families and advises clients on complex federal and state tax examinations. Timothy Schroeder Mr. Schroeder is a partner in the firm's Not-for-Profit Services Group, based in the New York, NY, office. His extensive expertise focuses on the planning, administration and supervision of not-for-profit engagements, including those that receive government funding and require special compliance reporting, as well as employee benefit plan audits. Christopher Stoop Mr. Stoop is a partner in the firm and is based in the Iselin, NJ, office. With over 15 years of experience, he provides audit-related services to public and private companies in the real estate and manufacturing and distribution industries within the consumer products space. Lee Tomasso Mr. Tomasso is a partner based in the Iselin, NJ, office and a member of the firm's Audit and Assurance Services practice. With nearly 15 years of public accounting experience, he provides audit-related services to public and private clients in a variety of industries, including software and technology, life sciences and automotive. Angela Veal Ms. Veal is a partner in the firm's Technical Accounting Advisory Services practice, based in the Dallas, TX office. She has nearly 25 years of global accounting and private industry experience. Angela advises the C-suite on complex transaction accounting relating to IPOs, M&As and debt restructuring, GAAP technical accounting and business transformation. Varun Vig Mr. Vig is a partner in the Private Client Services Group and member of the Financial Services Group, based in the New York, NY, office. He has over 15 years' experience providing comprehensive tax planning and compliance services to ultra-high-net-worth individuals and families, including personal and partnership tax matters for private equity/hedge funds and their owners. Maggie Xie Ms. Xie is a partner in the firm's Outsourced Family Office Solutions practice and is based in the West Palm Beach, FL, office. She has over 15 years of experience in accounting, taxation, investment and operational matters for ultra-high-net-worth families. About EisnerAmper EisnerAmper, one of the largest business consulting firms in the world, is comprised of EisnerAmper LLP, a licensed independent CPA firm that provides client attest services; and Eisner Advisory Group LLC, an alternative practice structure that provides business advisory and non-attest services in accordance with all applicable laws, regulations, standards and codes of conduct. Clients are in all business sectors and leverage a complete menu of service offerings. Its combined entities include more than 370 partners and approximately 4,000 employees. For more information, please visit eisneramper.com [*] Jacobs PC Law Firm Names Three New Partners ----------------------------------------------- As industry experts predict a looming real estate bust, Jacobs PC, a leading law firm in the industry, on Sept. 6, 2023, announced a strategic move by bringing on board three new partners. These additions are expected to bolster the firm's capability to navigate the impending real estate and bankruptcy challenges and provide top-tier service to its clientele. Founder Leo Jacobs has always believed in such a proactive approach. "The world of real estate is ever-evolving," says Mr. Jacobs. "By strengthening our team now, we're ensuring our clients have the support they need to navigate the real estate downturn. And, it is coming." JPC works with debtors, investors, and guarantors on in-court and out-of-court restructuring processes, bankruptcy, and modification for loans with CMBS lenders, and private money managers. JPC also advises fiduciaries, shareholders, partners (General and Limited Partners) on fiduciary disputes. Out-of-court workout case: A $50MM international middle market manufacturer of style-footwear goods for luxury outlets and its own independent brand fell cash-flow negative for the first time in 25 years and was under judgment enforcement from one of its landlords and others. JPC attorneys created certain business and workout objectives to aggressively defend the landlord's prosecution and halted landlord enforcement proceedings, settling the matter permanently. JPC attorneys managed to downsize the tax liability of the founder and CEO by approximately $10MM. Fiduciary dispute case: A $40MM logistics and trucking subsidiary of a multi-national multi-billion dollar publicly traded shipping and logistics company found that its minority shareholder was siphoning hundreds of thousands of dollars from company operating accounts and obtained a temporary restraining order accusing the subsidiary of such. JPC attorneys successfully moved to vacate the court order and subsequently successfully defended a summary judgment claim for an accounting of the minority shareholder. Bankruptcy case: A multi-million-dollar construction and design company was facing a fiduciary enforcement action of the estate of their deceased partner and financial fiduciary. JPC attorneys successfully filed for Chapter 11 to reorganize the debts of the company and stop enforcement proceedings. JPC attorneys successfully vacated any restraining orders and settled the action upon favorable terms of their client. Commercial litigation case: JCP attorneys successfully dismissed a lawsuit brought by a landlord seeking $15 million against individual guarantors pursuant to the doctrine of res judicata. Jacobs PC has consistently been at the forefront of real estate law, advocating for its clients' best interests. "This isn't just about preparing for a downturn; it's about ensuring our clients have the best minds in the industry on their side," remarks Jacobs. The new partners joining Jacobs PC include: Mitchell G. Mandell, Senior Partner -- Renowned in the real estate legal community, Mr. Mandell brings nearly four decades of expertise in property litigation and transactions. Wayne M. Greenwald, Senior Counsel -- Mr. Greenwald has been focused on debtor-creditor law for more than 30 years. He formerly served as co-chair of the American Bankruptcy Institute's commercial fraud task force. Lewis S. Fischbein, Partner -- A specialist in commercial litigation, Mr. Fischbein's track record illuminates his success in navigating complex disputes. About Jacobs PC Jacobs PC is a boutique commercial litigation/disputes, workout/ restructuring, real estate, and bankruptcy law firm known for finding creative, direct and expedient solutions to complex, high-profile legal issues. The firm zealously builds trusts and long-standing relationships with clients who seek to forge speedy, practical paths forward. About Leo Jacobs Leo Jacobs is a commercial litigation and bankruptcy attorney & the founder of Jacobs PC. From the courtroom to the board room, Leo has a demonstrated talent for devising, positioning, and advancing arguments that mitigate risk and reach successful outcomes. [*] Joshua M. Altman Joins Katten's Insolvency Team in Chicago -------------------------------------------------------------- Katten disclosed that Joshua M. Altman has joined the firm as a partner in the Insolvency and Restructuring practice in Chicago. Mr. Altman represents major national and international companies throughout the lifecycle of both in-court and out-of-court restructuring processes. He guides clients in financial distress and frequently counsels lenders, trade partners and others dealing with the financial hardship of another company, including investors looking to pursue strategic assets from troubled companies. "Josh is a proven lawyer who understands the complexities and challenges all stakeholders face in restructuring matters," said Steven J. Reisman, co-chair of Katten's Insolvency and Restructuring practice. "He brings strong credentials along with the in-depth business experience, acute legal acumen and sophisticated client service that our clients have come to expect from our team." Mr. Altman was most recently a restructuring partner at Kirkland & Ellis, where he counseled national and international companies as well as numerous corporate boards, executive teams, stakeholder groups and advisors on all phases of in- and out-of-court corporate restructuring. He has also represented creditors, purchasers in 363 sales, sponsors and disinterested directors in connection with Chapter 11 proceedings or restructuring scenarios. He has helped resolve complicated cross-border issues in Canada, Britain, India and Australia. Altman also leverages prior startup and consulting experience to help solve the complex business needs of his clients. Katten -- http://www.katten.com/-- is a full-service law firm with approximately 700 attorneys in locations across the United States and in London and Shanghai. Clients seeking sophisticated, high-value legal services turn to Katten for counsel locally, nationally and internationally. The firm's core areas of practice include corporate, financial markets and funds, insolvency and restructuring, intellectual property, litigation, real estate, structured finance and securitization, transactional tax planning, private credit and private wealth. Katten represents public and private companies in numerous industries, as well as a number of government and nonprofit organizations and individuals. [^] BOOK REVIEW: The Story of The Bank of America ------------------------------------------------- Author: Marquis James and Bessie R. James Publisher: Beard Books Softcover: 592 pages List Price: $31.80 Order your personal copy today at http://www.amazon.com/exec/obidos/ASIN/1587981459/internetbankrupt The Bank of America began as the Bank of Italy in 1904. A. P. Giannini was motivated to found the Bank out of his indignation over the neglect by other banks of the Italian community in San Francisco's North Beach area. Local residents were quickly drawn to Giannini's new type of bank suited for their social circumstances, financial needs, and plans and aspirations. Before Giannini's Bank of Italy, the field was dominated by large, well-connected, and politically influential banks typified by the magnate J. P. Morgan's House of Morgan catering to corporations and the wealthy industrialists and their families of the Gilded Age. Giannini's Bank proved to be a timely enterprise with great potential far beyond its founder's original aims. The early 1900s following the Gilded Age was a time of spreading democratization in American society with large numbers of immigrants being assimilated. It was also a time of considerable industrial growth after the heyday of the tycoons such as Morgan, Rockefeller, and Carnegie in the latter 1800s. Giannini's idea was also helped by the growth of California in its early stages of becoming one of the most prosperous and most populous states. As California grew, so did the Bank of America. A. P. Giannini was the perfect type of individual to oversee the growth of a bank that stood in sharp contrast to the House of Morgan and which reflected broad changes in American society and business. Giannini followed the quick success of his North Beach bank with Bank of Italy branches elsewhere in San Francisco. With the success of these followed branches throughout California's agricultural valleys and Los Angeles as Giannini reached out to populations of other average persons generally ignored by the traditional banks. Throughout the rapid growth of his bank, Giannini never lost touch with his original motive for creating a bank suited for the average individual. When he died at 80 years of age in 1949, he lived in the same house as he did when he opened the original Bank of Italy; and his estate was less than half a million dollars. Throughout all the stages of the Bank of America's growth, business recessions and depressions, and changes in American society, including increased government regulation, the Bank continued to reflect its founder's purposes for it. In the 1920s, the Bank of Italy became a part of the corporation Transamerica. In 1930, the Bank was merged with the Bank of America of California. The newly formed bank was given the name the Bank of America National Trust and Savings Association, with Giannini appointed as chairman of the committee to work out the details of the merger. In 1930, he selected Elisha Walker to head Transamerica so he could be free to pursue his interest of establishing a national bank with the same goals and nature as his original Bank of Italy. But becoming alarmed over Walker's proposed measures for dealing with the pressures of the Depression, Giannini waged a battle involving board members, stockholders, and allies he had worked with in the past to regain control of Transamerica. In 1936, A. P. Giannini's son, Lawrence Mario, succeeded his father as president of Bank of America, with A. P. remaining as chairman of the board. The story of Bank of America is largely the story of A. P. Giannini: his ideas, his values, his ambitions, his goals, his personality. The co-authors follow the stages of the Bank's growth by focusing on the genteel, yet driven and innovative, A. P. Giannini. There's a balance of basic business material such as stock prices, rationale of momentous business decisions, and balance-sheet data, with portrayals of outsized characters of the time. Among these, besides Giannini, are the federal government official Henry Morgenthau and Charles Stern, California's superintendent of banks in the early 1900s. With this balance, The Story of the Bank of America is an engaging and informative work for readers of more technical business books and human-interest business stories alike. ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. On Thursdays, the TCR delivers a list of recently filed Chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. The Sunday TCR delivers securitization rating news from the week then-ending. TCR subscribers have free access to our on-line news archive. Point your Web browser to http://TCRresources.bankrupt.com/and use the e-mail address to which your TCR is delivered to login. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Philadelphia, Pa., USA. Randy Antoni, Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Joel Anthony G. Lopez, Psyche A. Castillon, Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 2023. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $975 for 6 months delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Peter A. Chapman at 215-945-7000. *** End of Transmission ***