/raid1/www/Hosts/bankrupt/TCR_Public/231006.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, October 6, 2023, Vol. 27, No. 278
Headlines
1778 DEAN ST.: Dives in Chapter 11 Bankruptcy Protection
50 CROSBY PINES: Hires Arete as Management Service Company
5200 ENTERPRISES: Case Summary & Six Unsecured Creditors
8300 HOLDING: Seeks Chapter 11 Bankruptcy Protection
A FAMILY MEMBER: Seeks to Hire Van Horn Law Group as Counsel
AGILE THERAPEUTICS: Receives Delisting Notice From Nasdaq
ALLSTATE REALTY: Plan Filing Deadline Extended to Nov. 30
AMERICAN PHYSICIAN: U.S. Trustee Appoints Creditors' Committee
ARCHBISHOP OF BALTIMORE: Files Emergency Bid to Use Cash Collateral
ARK LABORATORY: Court Grants Preliminary Approval of Disclosures
B&G PROPERTY: Court Approves Disclosure Statement
BELMONT TRADING: Dives in Chapter 11 Bankruptcy Protection
BENNETT MINERAL: Hits Chapter 11 Bankruptcy Protection
BENTOLI INC: Seeks Cash Collateral Use, DIP Loan from Liminality
BUSHWICK BEER: Court OKs Interim Cash Collateral Access
CAPSTONE GREEN: DIP Loan from Goldman Sachs, Broad Street OK'd
CASCADE FINANCIAL: Seeks Chapter 11 Bankruptcy
CELSIUS NETWORK LLC: SEC Questions Coinbase Role in Bankruptcy Plan
CHEEKTOWAGA CONCRETE: Mark Schlant Named Subchapter V Trustee
DELTA LLC: Affiliate Seeks Cash Collateral Access
DIOCESE OF CAMDEN: Revised Bankruptcy Plan Insurer Rights Amended
DIVE PLACE II: Unsecureds to Get $2,500 per Quarter for 3 Years
DNA SERVERS: Case Summary & 17 Unsecured Creditors
EAGLE TRUCKLINES: Case Summary & Unsecured Creditors
ELMER BUCHTA: Hits Chapter 11 Bankruptcy Protection
EPWORTH VILLA: Has $4MM DIP Loan from Hamlin Capital
ESJ TOWERS: Committee Seeks to Hire Bankruptcy Counsel
FINISH MAN: Hires Law Office of Kevin K. Kercher as Counsel
FTX GROUP: Asset Recovery Task Speeds Up Prior SBF Trial
G.I.K. INVESTMENT: U.S. Trustee Unable to Appoint Committee
GETTYSBURG RENTAL: Seeks Chapter 11 Bankruptcy
GETTYSBURG RENTAL: Seeks to Hire CGA Law Firm as Counsel
GOLDEN SEAHORSE: Unsecureds Owed $1.2M to $6M to be Paid in Full
GREATER LIBERTY: Seeks to Hire Penachio Malara as Legal Counsel
GREENBERG GOURMET: Court OKs Cash Collateral Access Thru Dec 31
GWD INC: Seeks to Hire Kutner Brinen Dickey as Legal Counsel
HARRINGTON ESTATES: Hires Radius Agent as Real Estate Agent
HART INC: Court OKs $400,000 DIP Loan from Palisades
HARTMAN SPE: Seeks to Hire Epiq Corporate as Administrative Advisor
HARTMAN SPE: Seeks to Hire Katten Muchin Rosenman as Legal Counsel
HARTMAN SPE: Taps Chipman Brown Cicero & Cole as Delaware Counsel
HAYS MECHANICAL: Starts Chapter 11 Bankruptcy Protection
INFINITY PHARMA: Oct. 6 Deadline Set for Panel Questionnaires
INSTANT BRANDS: Gets Bids from Citadel, Centre Lane
IQPACK LLC: Dennis Perrey Named Subchapter V Trustee
JACON LLC: Files Chapter 11 Subchapter V Case
JAMES R SMITH: Francis Brennan Named Subchapter V Trustee
JG FOOD: Court Grants 21-Day Extension to File Plan
JSMITH CIVIL: Dickinson Avenue Contractor in Chapter 11
KIDDE-FENWAL: Defends Chapter 11 Plan Extension Deadline Bid
KIRBY CONSTRUCTION: Hires Paul Reece Marr as Legal Counsel
KPG REVENUE: Seeks to Hire Gamett & King as Accountant
LA BELLE FRANCE: Unsec. Creditors to Get Dividend in Plan
LINDEN CENTER: Payout to Creditors to Depend on Sale
LJF INC: Hits Chapter 11 Bankruptcy Protection
LUCAS MACYSZYN: Seeks to Hire Johnson Pope as Legal Counsel
LUXURY AUTO: Aaron Cohen Named Subchapter V Trustee
MERCY HOSPITAL: Committee Hires FTI Consulting as Financial Advisor
MERCY HOSPITAL: Committee Seeks to Hire Cutler Law as Co-Counsel
MERCY HOSPITAL: Committee Seeks to Hire Sills Cummis as Counsel
MERIDIAN RESTAURANTS: Taps Tanner LLC as Accountant
METCALF ANTIQUE: Seeks to Hire Evans & Mullinix as Legal Counsel
MICHAELS COS: S&P Downgrades ICR to 'CCC+', Outlook Negative
MIDWEST OVERNITE: James Overcash Named Subchapter V Trustee
MOVIA ROBOTICS: General Unsecureds to Recover 0% in Plan
MURRIETA HOLDINGS: Case Summary & One Unsecured Creditor
NASHVILLE SENIOR: Committee Taps Rock Creek as Financial Advisor
NEILLY'S FOOD: Court OKs Cash Collateral Access Thru Oct 18
NEILLY'S FOOD: Lisa Rynard Named Subchapter V Trustee
NEW BEGINNING: Unsecureds Owed $3M to Get 4.1% in Plan
NOBLE HOUSE: Seeks to Hire Craig Barbarosh as Independent Manager
NOBLE HOUSE: Taps Flatiron Law Group as Special Corporate Counsel
NOBLE HOUSE: Taps Lincoln Partners Advisors as Investment Banker
NOBLE HOUSE: Taps Pachulski Stang Ziehl & Jones as Legal Counsel
NOBLE HOUSE: Taps Riveron to Provide CFO
NORTH SHORE MANOR: Ordered to File and Serve Plan by Nov. 3
NORTHWEST FOUNDATION: Gets OK to Hire Law Offices of Lance L. Lee
ORBITAL INFRASTRUCTURE: Hires Alvarez & Marsal as Financial Advisor
ORBITAL INFRASTRUCTURE: Seeks to Hire Haynes and Boone as Counsel
PEGASUS HOME: U.S. Trustee Slams $1M Express Payment for Bidder
PGX HOLDINGS: Unsecureds Get Share in Interest in Creditor Trust
POSEIDON INVESTMENT: S&P Downgrades ICR to 'SD' on Restructuring
PRIME CORE: Hires Galaxy Digital Partners as Investment Banker
PRIME CORE: Hires M3 Advisory Partners LP as Financial Advisor
PRIME CORE: Hires Stretto Inc. as Administrative Agent
PRIME CORE: Seeks to Hire Mcdermott Will & Emery as Counsel
PRIZE MANAGEMENT: Hires Stevens Martin Vaughn & Tadych as Counsel
PRIZE MGT LLC: Starts Chapter 11 Bankruptcy Protection
QUICK DRY: Seeks to Hire Innovative Accounting as Bookkeeper
RIZOV CORP: Voluntary Chapter 11 Case Summary
S&G HOSPITALITY: Taps Contemporary Business Solutions as Accountant
SAND RIDGE: Hires Stevens Martin Vaughn & Tadych as Counsel
SCHIERHOLZ AND ASSOCIATES: Amends Unsecured Claims Pay Details
SCUNGIO BORST: Unsecureds to Get Remaining SBA Plan Trust Assets
SDPBC ACQUISITION: Case Summary & 20 Largest Unsecured Creditors
SIGNIA LTD: Seeks Cash Collateral Access
SMILEDIRECTCLUB INC: Court OKs $80MM DIP Loan from Cluster Holdco
SOFT SURROUNDING: Proposes Layoffs Pending Chapter 11 Sale
SOFT SURROUNDINGS: Court OKs $18MM DIP Loan from 1903 Partners
SORRENTO THERAPEUTICS: Hires Connor Group as Accounting Adviser
SOURCEWATER INC: Hires Mintz Levin Cohn as Special Counsel
ST JOHNS RESIDENCE: Hires Law Offices of Isaac Nutovic as Counsel
SUSTAITA ENTERPRISES: Court OKs Interim Cash Collateral Access
TANTUM COMPANIES: Hires Pokorny & Company as Accountant
TC WARNER: Seeks to Hire Parsons Behle & Latimer as Legal Counsel
TEXAS CLT: Seeks to Hire Harney Partners as Financial Advisor
TEXAS CLT: Seeks to Hire Husch Blackwell as Bankruptcy Counsel
TKEES INC: Wins Interim Cash Collateral Access Thru Oct 31
TOPPOS LLC: Case Summary & 16 Unsecured Creditors
TOWER HEALTH: S&P Lowers Long-Term Bond Rating to 'CCC+'
TUFFSTUFF FITNESS: Caroline Djang Named Subchapter V Trustee
TW AUTOMATION: Case Summary & 12 Unsecured Creditors
U STREET: Voluntary Chapter 11 Case Summary
ULTIMATE MEDICAL: S&P Raises Long-Term Rev Bond Ratings to 'BB+'
UNIVERSAL SOLAR: Dawn Maguire Named Subchapter V Trustee
VELSICOL CHEMICAL: Matthew Brash Named Subchapter V Trustee
VENTURE INC: Taps Harper Rains Knight & Co. as Financial Advisor
VIASAT INC: S&P Places 'BB-' ICR on CreditWatch Negative
VICE GROUP: Hires Katten Muchin Rosenman LLP as Special Counsel
WHEELS UP: Lee Moak Replaces Erik Snell as Director
WINDSOR TERRACE: New Debtors Get $1MM DIP Loan from RT Lending
WYATT LLC: Brian Rothschild Named Subchapter V Trustee
[*] Bankruptcy Filings Up in Third Quarter 2023
[] Kirkland, Foley Co-Chair Nov 29 Distressed Investing Conference
[^] BOOK REVIEW: TAKING CHARGE: Management Guide to Troubled
*********
1778 DEAN ST.: Dives in Chapter 11 Bankruptcy Protection
--------------------------------------------------------
1778 Dean St LLC filed for chapter 11 protection in the Eastern
District of New York. According to court filing, the Debtor reports
$699,121 in debt owed to 1 and 49 creditors. The petition states
funds will be available to unsecured creditors.
A teleconference meeting of creditors under 11 U.S.C. Section
341(a) is slated for October 16, 2023, at 11:00 AM.
About Dean St LLC
Dean St LLC owns a three family house located at 1778 Dean Street,
Brooklyn, NY valued at $1.13 million.
Dean St LLC sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. E.D.N.Y. Case No. 23-43261) on Sept. 14, 2023. In the
petition filed by Morias Dicks, as president, the Debtor reports
total assets of $1,128,600 and total liabilities of $699,121.
Honorable Bankruptcy Judge Elizabeth S. Stong oversees the case
The Debtor is represented by:
Narissa A Joseph, Esq.
1778 Dean Street
Brooklyn, NY 11233
Tel: 212-233-3060
Fax: 646-607-3335
Email: njosephlaw@aol.com
50 CROSBY PINES: Hires Arete as Management Service Company
----------------------------------------------------------
50 Crosby Pines, Ltd. seeks approval from the U.S. Bankruptcy Court
for the Southern District of Texas to employ Arete Real Estate &
Development, Inc. as management service company.
The firm's services include accounting, construction management,
and managing builder and real estate broker relationships.
The firm will be paid at monthly flat fee of $10,000.
The firm has a balance due from the Debtor of $139,880,
representing 12 months of management services. The firm does not
intend to seek collection of this balance except to the extent as
may be authorized by any future lender or investor.
As disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Joe Fogarty
Arete Real Estate & Development, Inc.
340 North Sam Houston Parkway East #100
Houston, TX 77060
Tel: (281) 272-6134
About 50 Crosby Pines, Ltd.
50 Crosby Pines, Ltd. filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Texas Case No.
23-32924) on July 31, 2023, listing $1 million to $10 million in
both assets and liabilities.
Judge Eduardo V Rodriguez oversees the case.
Leonard H. Simon, Esq., at Pendergraft & Simon, LLP represents the
Debtor as counsel.
5200 ENTERPRISES: Case Summary & Six Unsecured Creditors
--------------------------------------------------------
Debtor: 5200 Enterprises Limited
4453 Saint Johns Avenue
Jacksonville FL 32210
Business Description: The Debtor is the owner of real property
located at 5200-5202 1st Avenue, Brooklyn,
New York valued at $6.43 million.
Chapter 11 Petition Date: October 4, 2023
Court: United States Bankruptcy Court
Middle District of Florida
Case No.: 23-02377
Debtor's Counsel: Bryce C. Krampert, Esq.
POSTILLION LAW GROUP, LLC
12724 Gran Bay Parkway West, Suite 410
Jacksonville FL 32258
Tel: (904) 615-6621
Email: Bryce@PostillionLaw.com
Total Assets: $6,433,700
Total Liabilities: $3,257,788
The petition was signed by John A. Luhrs as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's six unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/XXDQBKI/5200_Enterprises_Limited__flmbke-23-02377__0001.0.pdf?mcid=tGE4TAMA
8300 HOLDING: Seeks Chapter 11 Bankruptcy Protection
----------------------------------------------------
8300 Holding Group LLC filed for Subchapter V bankruptcy protection
in the Southern District of Mississippi. According to court filing,
the Debtor reports between $1 million and $10 million in debt owed
to 1 and 49 creditors. The Petition states funds will be available
to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated
for
October 20, 2023, at 10:00 AM.
About 8300 Holding Group
8300 Holding Group LLC is a limited liability company in
Mississippi.
8300 Holding Group LLC sought relief under Subchapter V of Chapter
11 of the U.S. Bankruptcy Code (Bankr. S.D. Miss. Case No.
23-02116) on September 14, 2023. In the petition filed by Robert M.
Manners, President of Providence Management, Inc., Manager of
Meridian Holding Group, LLC, the Debtor reports estimated assets
and liabilities between $1 million and $10 million.
Honorable Bankruptcy Judge Katharine M Samson oversees the case.
The Debtor is represented by:
Craig M. Geno, Esq.
Law Offices of Craig M. Geno, PLLC
8300 Highway 19 North
Collinsville, MS 39325
A FAMILY MEMBER: Seeks to Hire Van Horn Law Group as Counsel
------------------------------------------------------------
A Family Member Homecare Holdings, Inc. seeks approval from the
U.S. Bankruptcy Court for the Southern District of Florida to
employ Van Horn Law Group, PA.
The Debtor requires legal counsel to:
(a) give advice with respect to the powers and duties of the
Debtor in the continued management of its business operations;
(b) advise the Debtor with respect to its responsibilities in
complying with the U.S. Trustee's Operating Guidelines and
Reporting Requirements and with the rules of the court;
(c) prepare legal documents;
(d) protect the interest of the Debtor in all matters pending
before the court; and
(e) represent the Debtor in negotiation with its creditors in
the preparation of a Chapter 11 plan.
Prior to filing its Chapter 11 case, the Debtor paid the firm a fee
retainer in the amount of $15,000 plus $1,738 for the filing fee
cost.
The hourly rates of the firm's attorneys and staff range from $150
to $450.
Chad Van Horn, Esq., a partner at Van Horn Law Group, disclosed in
a court filing that his firm is a "disinterested person" as that
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Chad Van Horn, Esq.
Van Horn Law Group PA
500 NE 4th St., Ste. 200
Fort Lauderdale, FL 33301
Telephone: (954) 765-3166
Email: chad@cvhlawgroup.com
About A Family Member Homecare Holdings
A Family Member Homecare Holdings, Inc. provides home care services
to Florida seniors.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 23-17322) on Sept. 12,
2023, with $159,329 in total assets and $2,022,917 in total
liabilities. Brian Gauthier, president, signed the petition.
Chad Van Horn, Esq., at Van Horn Law Group PA serves as the
Debtor's counsel.
AGILE THERAPEUTICS: Receives Delisting Notice From Nasdaq
---------------------------------------------------------
Agile Therapeutics, Inc. said in a Form 8-K filed with the
Securities and Exchange Commission that on Sept. 27, 2023, it
received a notice from the Listing Qualifications Department of The
Nasdaq Stock Market advising the Company that the Staff had
determined that the Company did not meet the terms of the extension
and that unless the Company requests an appeal, the Staff would
proceed with delisting.
The Company intends to submit a hearing request to the Nasdaq
Hearings Panel, which request will stay any delisting action by the
Staff at least until the hearing process concludes and any
extension granted by the Panel expires.
On March 27, 2023, Agile received a letter from the Staff
indicating that it was not in compliance with the minimum
stockholders' equity requirement for continued listing on the
Nasdaq Capital Market set forth in Nasdaq Listing Rule 5550(b)(1)
requiring companies listed on the Nasdaq Capital Market to maintain
stockholder's equity of at least $2,500,000. On June 2, 2023,
based on the Staff's review of the materials submitted by the
Company, the Staff granted the Company's request for an extension
until Sept. 25, 2023 to comply with the Rule.
At the Panel hearing, the Company intends to present a plan to
regain compliance with the Rule. In the interim, the Company's
common stock will continue to trade on the Nasdaq Capital Market
under the symbol "AGRX" at least pending the ultimate conclusion of
the hearing process. Additionally, the Panel may review the
Company's plan and grant an additional 180 days from the date of
the notice, until March 25, 2024, for the Company to regain
compliance with the Rule.
Agile said, "There can be no assurance that the Company's plan will
be accepted by the Panel or that, if it is, the Company will be
able to regain compliance with the applicable Nasdaq listing
requirements. If the Company's common stock is delisted, it could
be more difficult to buy or sell the Company's common stock or to
obtain accurate quotations, and the price of the Company's common
stock could suffer a material decline. Delisting could also impair
the Company's ability to raise capital.
"If trading in the Company's common stock is suspended on the
Nasdaq Capital Market or the Company's common stock is delisted by
Nasdaq, it could negatively impact the Company as it would likely
reduce the liquidity and market price of the Company's common
stock, reduce the number of investors willing to hold or acquire
the Company's common stock, negatively impact the Company's ability
to access equity markets and obtain financing, and impair the
Company's ability to provide equity incentives."
About Agile Therapeutics Inc.
Agile Therapeutics, Inc. is a women's healthcare company dedicated
to fulfilling the unmet health needs of today's women. The
Company's product and product candidates are designed to provide
women with contraceptive options that offer freedom from taking a
daily pill, without committing to a longer-acting method. Its
initial product, Twirla, (levonorgestrel and ethinyl estradiol), a
transdermal system, is a non-daily prescription contraceptive.
Agile reported a net loss of $25.41 million for the year ended Dec.
31, 2022, compared to a net loss of $71.07 million for the year
ended Dec. 31, 2021.
Iselin, New Jersey-based Ernst & Young LLP, the Company's auditor
since 2010, issued a "going concern" qualification in its report
dated March 22, 2023, citing that the Company has generated losses
since inception, used substantial cash in operations, anticipates
it will continue to incur net losses for the foreseeable future,
requires additional capital to fund its operating needs and has
stated that substantial doubt exists about the Company's ability to
continue as a going concern.
ALLSTATE REALTY: Plan Filing Deadline Extended to Nov. 30
---------------------------------------------------------
Judge Deborah J. Saltzman approved a stipulation to extend the time
for debtor Allstate Realty Group, Inc., to file a Chapter 11
Disclosure Statement and Chapter 11 Plan. Allstate Realty Group
must file its Disclosure Statement and Chapter 11 Plan no later
than Nov. 30, 2023.
About Allstate Realty Group
Allstate Realty Group, Inc. is a Nevada Corporation doing business
in California. The only asset of the business is the subject real
property known as: 247 S. Carmelina Avenue in the City of Los
Angeles, 90049.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 2:23-bk-13519-DS) on
June 7, 2023. In the petition signed by Joseph Kashki, chief
executive officer, the Debtor disclosed up to $50,000 in both
assets and liabilities.
Onyinye N. Anyama, Esq., at Anyama Law Firm, A Professional
Corporation, is the Debtor's legal counsel.
AMERICAN PHYSICIAN: U.S. Trustee Appoints Creditors' Committee
--------------------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed an official
committee to represent unsecured creditors in the Chapter 11 cases
of American Physician Partners, LLC and its affiliates.
The committee members are:
1. R1 RCM, Inc.
d/b/a Medical Consultants, Inc.
Attn: Lauren Loeb
433 W. Ascension Way, Suite 200
Murray, UT 84123
Phone: (770) 354-5191
Email: ljulian1@r1rcm.com
2. Sapientes Funding II, LLC
Attn: Karen M. Scheibe Eliason
46C, 3033 S. Parlar Road, Suite 1010
Aurora, CO 80044
Phone: (651) 303-0800
Email: karen.eliason@wakeassoc.com
3. Staff Care, Inc.
Attn: Bonnie Reinke
2999 Olympus Blvd
Dallas, TX 75019
Phone: (817) 905-2765
Email: bonnie.reinke@amnhealthcare.com
4. LocumTenens.com, LLC
Attn: Adwoa Awotwi
2575 Northwinds Parkway
Alpharetta, GA 30009
Phone: (678) 690-7915
Email: aawotwi@locumtenens.com
5. Dennis Deruelle, MD
Phone: (813) 966-1077
Email: deruelle.md@gmail.com
6. Briese Medical Services, PLLC/Beau Briese, MD
Attn: Ivan Inchauste
533 Birch Street
Bellaire, TX 77401
Phone: (310) 890-7604
Email: drbriese@gmail.com
7. Atlas Physicians, LLC
Attn: Benjamin D. Mason, MD
122 Jackson Street, Suite 1A
Hoboken, NJ 07030
Phone (206) 313-0892
Email: bmason@atlasphysicians.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 American Physician Partners
American Physician Partners, LLC is an emergency medicine
management company in Brentwood, Tenn.
American Physician Partners and its affiliates sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead
Case No. 23-11469) on Sept. 18, 2023. In the petition signed by its
chief restructuring officer, John DiDonato, American Physician
Partners disclosed $100 million to $500 million in assets and $500
million to $1 billion in liabilities.
Judge Brendan L. Shannon oversees the cases.
Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones LLP,
represents the Debtor as legal counsel.
ARCHBISHOP OF BALTIMORE: Files Emergency Bid to Use Cash Collateral
-------------------------------------------------------------------
Roman Catholic Archbishop of Baltimore asks the U.S. Bankruptcy
Court for the District of Maryland for authority to use cash
collateral and provide adequate protection.
The Debtor requires the use of cash collateral to provide
compensation for unresolved claims of survivors of abuse and
preserve the ability of the Debtor to continue providing essential
ministries and services within the Archdiocese of Baltimore.
Pursuant to a variety of lending transactions, certain financial
instruments, and Treasury Management Services Agreement, the Debtor
is indebted to PNC Bank, National Association, which indebtedness
is secured by, among other things, the Debtor's deposit and
investment accounts maintained at PNC.
Pursuant to the Indenture of Trust dated as of June 1, 2007,
Maryland Health and Higher Educational Facilities Authority issued
$24.165 million in the aggregate principal amount of its Maryland
Health and Higher Educational Facilities Authority Revenue Bonds,
Archdiocese of Baltimore Schools Issue, Series 2007, the proceeds
of which were loaned by the Issuer to the Debtor pursuant to a
certain Loan Agreement, dated as of June 1, 2007, by and between
the Issuer and Debtor, in order to finance and refinance the costs
of certain non-collegiate educational projects.
As of the Petition Date, the aggregate principal amount outstanding
under the Bond Loan Agreement was approximately $21.675 million,
plus accrued interest and other fees due and owing under the Bond
Loan Agreement and PNC is the sole holder of the Bonds.
Pursuant to the Third Amended and Restated Letter Agreement -- Term
Loan dated as of May 16, 2014 by and between PNC and the Debtor,
PNC provided a term loan facility in the aggregate principal amount
of $14.7 million.
As of the Petition Date, the aggregate principal amount outstanding
under the PNC Loan Agreement was approximately $4.1 million, plus
accrued interest and other fees due and owing under the PNC Loan
Agreement.
In addition to the PNC Obligations, the Debtor is obligated as a
guarantor in connection with the Guaranty and Suretyship Agreement,
dated as of May 20, 2016, pursuant to which the Debtor guaranteed
all obligations of Church of the Nativity of Our Lord Jesus Christ
Roman Catholic Congregation, Incorporated, including, without
limitation, a Standby and Commercial Letter of Credit.
The Debtor is also obligated under certain swap agreements with
PNC.
As of September 25, 2023, the mark-to-market value of the Swap
Obligations is approximately $856,000 that would be owing by the
Debtor. In addition, if the Swap Agreements were terminated, the
Debtor would incur significant increased interest expense in
connection with the Bond Obligations and PNC Obligations.
In exchange for the consensual use of cash collateral and
continuation of the Swap Agreements, the Debtor proposes to grant
the following adequate protection to PNC:
(a) the continued servicing of the Prepetition Obligations
(including legal fees and costs of PNC), in the ordinary course of
business (including via direct debit); and
(b) solely to the extent of the postpetition diminution in value
which is as a result of, or arises from, or is attributable to, the
imposition of the automatic stay, or the use, sale or lease of such
cash collateral: (i) replacement and preservation of any and all
liens, security interests, and setoff rights held by PNC prior to
the Petition Date and continuing in the proceeds thereof (including
sweep accounts to which funds may be transferred); and (ii) allowed
superpriority administrative expense claims against the Debtor.
A copy of the motion is available at https://urlcurt.com/u?l=97vnbX
from PacerMonitor.com.
About Roman Catholic Archbishop of Baltimore
Roman Catholic Archbishop of Baltimore is a non-profit religious
institution that maintains its principal place of business at 320
Cathedral Street, Baltimore, Maryland 21201. Consistent with Canon
Law and Maryland law, the RCAB holds property, including real
property, as a corporation sole for the purposes of erecting
churches, parsonages, burial grounds, or schools according to the
discipline and government of the Roman Catholic Church, with all
such property to be used only for such purposes.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Md. Case No. 23-16969) on September 29,
2023. In the petition signed by William E. Lori, archbishop, the
Debtor disclosed up to $500 million in assets and up to $1 billion
in liabilities.
YVS LAW, LLC and HOLLAND & KNIGHT LLP represent the Debtor as legal
counsel.
KEEGAN LINSCOTT & ASSOCIATES, PC is the financial and restructuring
advisor and EPIQ CORPORATE RESTRUCTURING LLC is the claims,
noticing, and balloting agent.
ARK LABORATORY: Court Grants Preliminary Approval of Disclosures
----------------------------------------------------------------
Judge Maria L. Oxholm has entered an order granting preliminary
approval the Disclosure Statement of Ark Laboratory, LLC, subject
to any timely and proper objections filed pursuant to this Court's
Stipulated Order to Extend Deadline for the Debtor to File Combined
Disclosure Statement and Chapter 11 Plan and Modify Related Dates,
previously entered.
The deadline to return ballots on the Plan, as well as to file
objections to final approval of the Disclosure Statement and
objections to confirmation of the Plan, is October 26, 2023.
No later than Oct. 31, 2023, the Debtor must file a verified
summary of the ballot count under section 1126(c) and (d) with a
copy of all original ballots attached.
The hearing on objections to final approval of the Disclosure
Statement and confirmation of the Plan will be held on Thursday,
November 2, 2023, at 11:00 a.m. in Room 1875, 211 W. Fort Street,
Detroit, Michigan.
About Ark Laboratory
Ark Laboratory, LLC owns and operates a medical laboratory in
Waterford, Mich.
Ark Laboratory sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Mich. Case No. 23-43403) on April 12,
2023. In the petition signed by its principal, James Grossi, the
Debtor disclosed up to $50 million in both assets and liabilities.
Judge Maria L. Oxholm oversees the case.
The Debtor tapped Robert N. Bassel, Esq., a practicing attorney in
Clinton, Mich., as bankruptcy counsel; and O'Keefe & Associates
Consulting, LLC as financial advisor.
The U.S. Trustee for Regions 3 and 9 appointed an official
committee to represent unsecured creditors in the Debtor's Chapter
11 case. The committee is represented by Taft Stettinius &
Hollister, LLP.
B&G PROPERTY: Court Approves Disclosure Statement
-------------------------------------------------
The court has entered an order approving the Disclosure Statement
of B&G Property Investments, LLC.
Written ballots accepting or rejecting the plan or Amended Plan
dated August 15, 2023, must be received by the proponent of the
Plan Douglas R Ricks, no less than 7 days before November 8, 2023.
Objections to the proposed plan must be filed and served no later
than 7 days before November 8, 2023.
The hearing on confirmation of the Plan, at which testimony will be
received if offered and admissible, will be held on November 8,
2023 at 10:00 AM, in/by US Bankruptcy Court, Courtroom #5, 405 E
8th Ave., Eugene, OR 97401.
About B&G Property Investments
B&G Property Investments, LLC, a company in Medford, Ore., filed
its voluntary petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. D. Ore. Case No. 22-60998) on July 29,
2022, with $10 million to $50 million in both assets and
liabilities. Keith Boyd, manager, signed the petition.
Judge Thomas M. Renn presides over the case.
Douglas R. Ricks, Esq., at Vanden Bos & Chapman, LLP represents the
Debtor.
The U.S. Trustee for Region 18 appointed an official committee to
represent unsecured creditors in the Debtor's Chapter 11 case. The
committee is represented by Farleigh Wada Witt.
BELMONT TRADING: Dives in Chapter 11 Bankruptcy Protection
----------------------------------------------------------
Belmont Trading Co., Inc. filed for Chapter 11 protection in the
Northern District of Illinois. According to court filing, the
Debtor reports between $10 million and $50 million in debt owed to
1 and 49 creditors. The petition states funds will not be
available to unsecured creditors.
A telephonic meeting of creditors under 11 U.S.C. Section 341(a) is
slated for October 17, 2023, at 1:30 PM.
About Belmont Trading
Belmont Trading Co. Inc. -- https://www.belmont-trading.com/ -- is
a company that provides global value recovery and asset management
solutions for retired IT assets, mobile devices, and network
telecom equipment.
Belmont Trading Co. Inc. sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ill. Case No. 23-12083) on Sept. 12,
2023. In the petition filed by Igor Boguslavsky, as president, the
Debtor reports assets between $1 million and $10 million and
liabilities between $10 million and $50 million.
The Honorable Bankruptcy Judge Janet S. Baer oversees the case.
The Debtor is represented by:
O. Allan Fridman, Esq.
Law office of O. Allan Fridman
555 Huehl Rd.
Northbrook, IL 60062
BENNETT MINERAL: Hits Chapter 11 Bankruptcy Protection
------------------------------------------------------
Bennett Mineral Company Inc. filed for chapter 11 protection in the
Eastern District of Virginia. According to court filings, the
Debtor reported between $1 million and $10 million in debt owed to
1 and 49 creditors. The petition states funds will be available to
unsecured creditors.
About Bennett Mineral Company Inc.
Bennett Mineral Company Inc. -- https://bennettmineral.com -- is a
family-owned and operated business that produces cat litter,
industrial absorbents, and agricultural feed supplements using
exceptional clay products.
Bennett Mineral Company Inc. sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D. Va. Case No. 23-33135) on
September 13, 2023. In the petition filed by Paul J. Bennett III,
as executive vice president, the Debtor reports assets and
liabilities between $1 million and $10 million each.
The Debtor is represented by:
Kevin J. Funk, Esq.
Durrette, Arkema, Gerson & Gill PC
1560 Rosemount Road
Walkerton, VA 23177
BENTOLI INC: Seeks Cash Collateral Use, DIP Loan from Liminality
----------------------------------------------------------------
Bentoli, Inc. asks the U.S. Bankruptcy Court for the Western
District of Texas, Austin Division, for authority to use cash
collateral and obtain postpetition financing.
On an interim basis, the Debtor does not believe it will need to
borrow any funds pursuant to the Modified Loan Agreement and may
need to borrow funds on a final basis subject to further Court
order. The loan is a revolving loan facility.
The Debtor seeks authority to (a) use the cash collateral of
Liminality Ventures, LLC, an entity owned and controlled by J.
Robinson and (b) borrow on a post-petition basis as may be needed
from Liminality to help fund operations as the Debtor continues to
stabilize its business and reorganize under Subchapter V following
the ruinous tenures of Alexander Palencia and Frank Maresma.
John C. Robinson is the Interim CEO of the Debtor.
To obtain the proposed post-petition credit, the Debtor seeks to
modify the existing loan agreement. Under the agreement, the Debtor
would borrow up to $400,000 (on a combined pre-and post-petition
basis) on a revolving basis, at an annual interest rate of 8%.
Interest will accrue at 8% per annum, and there is no increase in
such rate for any defaults.
The DIP loan will mature the earliest to occur of (i) the date of
the occurrence of an Event of Default under the Modified Loan
Agreement, subject to any applicable cure period, (ii) the date of
confirmation of the Plan; or (iii) the date the Borrower pays the
Lender in full and terminates the DIP Facility, unless extended by
agreement and/or by order of court.
The U.S. Small Business Administration has a senior lien on certain
collateral of the Debtor. Liminality, as the Debtor's prepetition
lender, holds a second lien behind the SBA on certain collateral
and a senior blanket lien on all of the Debtor's assets, including
its cash and trademarks.
On May 28, 2020, Debtor executed a Loan Authorization and
Agreement, Note, and Security Agreement with the SBA in the amount
of $150,000, secured by all tangible and intangible personal
property of the Debtor. The SBA Loan was perfected by the filing of
UCC-1 financing statement recorded with the Texas Secretary of
State on June 5, 2020. The SBA Loan is a senior secured loan with a
first lien perfected security interested in the collateral set
forth in the SBA UCC-1.
On May 9, 2023, the Debtor executed a Promissory Note and Security
Agreement payable to Robinson, Sr. in the amount of $200,000, or
such lesser amount advanced by the Original Lender. The Secured
Note granted a security interest in all of the Debtor's assets. The
Secured Note was perfected by the filing of a UCC-1 financing
statement recorded with the Florida Secretary of State on May 11,
2023.
On July 7, 2023, the Debtor executed a Notice of Borrowing to
acknowledge the advances made by Original Lender in the aggregate
amount of $152,161.
On July 21, 2023, the Debtor, the Original Lender, and Independent
Bank executed a Deposit Account Control Agreement, wherein the
Debtor and the Bank acknowledged and agreed that Original Lender
has control of the Debtor's account with the Bank, and, following
receipt by the Bank of a Shifting Control Notice, the Bank will
honor instructions received from the Original Lender concerning the
Account, and the Debtor will have no right or ability to access, or
to withdraw or transfer funds from, the Account.
On July 26, 2023, the Debtor executed another Notice of Borrowing
to acknowledge additional advances made by the Original Lender in
the aggregate amount of $50,000, for an outstanding Loan Amount
under the Secured Note of $202,161.
On August 31, 2023, the Debtor executed an Amended and Restated
Promissory Note and Security Agreement payable to Original Lender
in the amount of $250,000.
On September 8, 2023, the Original Lender, as Assignor, executed an
Assignment and Assumption Agreement with Liminality, as Assignee,
pursuant to which Liminality purchased the Secured Indebtedness
from the Original Lender, and the Original Lender assigned to
Liminality the Amended Secured Note, the DACA and the Lender UCC.
On September 8, 2023, the Debtor executed a Second Amended and
Restated Promissory Note and Security Agreement payable to
Liminality in the amount of $400,000.
On September 7, 2023, Liminality filed a UCC-3 Amendment to record
the assignment of the Lender UCC to Liminality.
On September 8, 2023, the Debtor executed a Trademark Security
Agreement with Lender, pursuant to which the Debtor assigned its
entire interest in the trademarks held by the Debtor to Liminality
as additional security. On September 13, 2023, the Trademark
Assignment was recorded with the U.S. Patent and Trademark Office.
On September 27, 2023, the Debtor executed another Notice of
Borrowing to acknowledge additional advances made by Liminality in
the aggregate amount of $100,000, for an outstanding Loan Amount
under the Secured Note of $302,161.
On September 29, 2023, the Debtor executed another Notice of
Borrowing to acknowledge additional advances made by Liminality in
the aggregate amount of $20,000, for an outstanding Loan Amount
under the Secured Note of $322,161. Also on September 29, 2023,
Liminality took a pledge of the stock of Robinson, Sr. as further
security for its loan.
The SBA will be adequately protected by the payment of interest. To
the extent the Debtor uses cash collateral, such use will not be
considered a borrowing under the Modified Loan Agreement and will
not result in the incurrence of interest expense. In exchange for
the use of its cash collateral, the Lender has agreed that a
replacement lien will suffice as adequate protection.
A copy of the motion is available at https://urlcurt.com/u?l=kcuDgg
from PacerMonitor.com.
About Bentoli, Inc.
Bentoli, Inc. is a privately owned company specializing in the
development, manufacture, and distribution of additives for
aquaculture and livestock feeds.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Tex. Case No. 23-10827) on October 1,
2023. In the petition signed by John Robinson, CEO, the Debtor
disclosed $723,653 in assets and $2,310,122 in liabilities.
Judge Shad Robinson oversees the case.
Ronald Smeberg, Esq., at The Smeberg Law Firm, represents the
Debtor as legal counsel, Berger Singerman LLP as Florida-based
counsel, BDF Law Group as special litigation counsel, and HMP
Advisory Holdings LLC dba Harney Partners as financial advisor.
BUSHWICK BEER: Court OKs Interim Cash Collateral Access
-------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of New York
authorized Bushwick Beer Garden LLC, d/b/a Rebel Cafe & Garden, to
use cash collateral on an interim basis in the aggregate amount not
to exceed $902,080.
The Debtor's assets consist of its inventory, restaurant equipment,
leasehold improvements, good will and cash generated from its
sales. The aggregate value of the assets is approximately $534,000.
The Debtor's secured debt is approximately $860,000.
Prior to the Petition Date, the Debtor obtained financing from
several lenders all of which are perfected in the Debtor's assets
by the filing of UCC-1 financing statements.
These lenders are:
-- U.S. Small Business Administration
-- Exclusive Solutions LLC
-- Redbow Capital LLC
-- Gem Funding LLC
As adequate protection, the Lenders are granted post-petition
replacement liens pursuant to 11 U.S.C. Section 361(2), to the
extent of any diminution in the value of the collateral as a result
of the Debtor's use of cash collateral.
The Replacement Liens will constitute valid, binding, enforceable,
and duly perfected replacement security interests in and liens upon
all currently owned and hereafter acquired property and assets of
the Debtor of any kind or nature.
The Debtor is authorized and directed to remit monthly adequate
protection payments in the amount of $2,474 to the Small Business
Administration, not later than the fifth day of the month in which
such Adequate Protection Payments become due, commencing on August
1, 2023.
These events constitute an "Event of Default":
(a) The Debtor ceases its operations or takes any material
action for the purpose of effecting the foregoing without the prior
written consent of the Lenders, except to the extent contemplated
by the Budget;
(b) The Interim Order is reversed, vacated, stayed, amended,
supplemented or otherwise modified in a manner which will
materially and adversely affect the rights of the Lenders
thereunder or will materially and adversely affect the priority of
any or all of the Obligations and the Lenders' Liens;
(c) The Debtor expends more than 110% of any line item in the
Budget or more than 105% of the entire Budget;
(d) The occurrence of a material adverse change subsequent to
the Petition Date, including, without limitation, any such
occurrence resulting from the entry of a Court order the effect of
which has not been stayed, in each case as reasonably determined by
the Lenders, in (1) the condition (financial or otherwise),
operations, assets, business of the Debtor taken as a whole and
with due regard to the Debtor's underlying business as evidence by
the Budget as the same may be amended from time to time either with
consent of the Lenders or by Court order; and/or (2) the value of
the Collateral;
(e) Any material and/or intentional misrepresentation by the
Debtor in the financial statements or certifications that may be
provided by the Debtor to the Lenders under the Loan Documents or
any Interim Order; and
(f) Non-compliance with or default by the Debtor with any of
the terms, provisions and conditions of any Interim Order,
provided, however, that non-compliance or default will not be
deemed an Event of Default if curable and cured by the Debtor
within five business days after notice of such noncompliance or
default is provided to the Debtor's counsel, in writing, and
actually received by The Kantrow Law Group, PLLC, 732 Smithtown
Bypass, Suite 101, Smithtown, New York 11787, by the Lenders.
A further hearing on the matter is set for October 17, 2023 at
11:30 a.m.
A copy of the order is available at https://urlcurt.com/u?l=1D5di4
from PacerMonitor.com.
About Bushwick Beer Garden LLC
Bushwick Beer Garden LLC, d/b/a Rebel Cafe & Garden, operates as a
restaurant at 2 Knickerbocker Avenue, Brooklyn, New York.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 23-41980) on June 2,
2023. In the petition signed by Matthew Shendell, the Debtor
disclosed up to $1 million in both assets and liabilities.
Judge Nancy Hershey Lord oversees the case.
Fred S. Kantrow, Esq., at The Kantrow Law Group, PLLC, represents
the Debtor as legal counsel.
CAPSTONE GREEN: DIP Loan from Goldman Sachs, Broad Street OK'd
--------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware authorized
Capstone Green Energy Corp. and affiliates to use cash collateral
and obtain postpetition financing, on an interim basis.
The Debtors are permitted to obtain secured postpetition financing
on a superpriority basis pursuant to the terms and conditions of a
Super-priority Senior Secured Debtor-in-Possession Note Purchase
Agreement from Goldman Sachs Specialty Lending Group, L.P., as
Collateral Agent, and Broad Street Credit Holdings LLC as the
purchaser, in an aggregate principal amount not to exceed $30
million, of which $18 million of DIP Notes will be available
immediately upon entry of the Interim Order.
The DIP Facility consists of three tranches of DIP Notes:
(i) a new money tranche of DIP Notes of $12 million, which
will be comprised of $9 million funded upon Issuer's satisfaction
or DIP Purchaser's waiver of the applicable draw conditions
following entry of the Interim Order and up to $3.0 million funded
upon the Issuer's satisfaction or DIP Purchaser's waiver of the
applicable draw conditions following entry of the Final Order;
(ii) a roll-up tranche of certain of the Prepetition Secured
Parties Claims in the aggregate principal amount of $15 million;
and
(iii) a roll-up tranche of the Prefunding Notes in the aggregate
principal amount of $3 million, which will be deemed funded in
their entirety upon entry of the Interim Order and execution of the
DIP Note Purchase Agreement.
The Debtors are required to comply with these milestones:
1. No later than the Petition Date, the Debtors will file (i)
the Plan, (ii) the Disclosure Statement, (iii) a motion seeking
approval of the DIP Note Documents, and (iv) any "first day"
motions, each of which will be in form and substance acceptable to
the Purchaser.
2. No later than three calendar days after the Petition Date,
the Bankruptcy Court will have entered the Interim Order approving
the DIP Note Documents, which order will be in form and substance
acceptable to the Purchaser.
3. No later than 35 calendar days after the Petition Date,
the Bankruptcy Court will have entered the Final Order approving
the DIP Note Documents, which order will be in form and substance
acceptable to the Purchaser.
4. No later than 35 calendar days after the Petition Date,
the Bankruptcy Court will have held a hearing and entered an order
confirming the Plan and approving the Disclosure Statement, which
Confirmation Order will be in form and substance acceptable to the
Purchaser.
5. No later than 42 calendar days after the Petition Date,
the Plan will become effective.
6. On the Closing Date and the last Friday of each month
thereafter, Capstone will have delivered the Approved Budget to the
DIP Agent.
7. On each Variance Report Date, Capstone will have delivered
a Variance Report to DIP Agent.
The DIP facility matures through the earliest to occur of (i) 42
calendar days after the Petition Date, (ii) the date that is 30
calendar days after the Petition Date if the Final Order has not
been entered by the Bankruptcy Court on or before such date; (iii)
the date of consummation of any sale of all or substantially all of
the assets of any of the Debtors pursuant to 11 U.S.C. section 363;
(iv) the occurrence and continuation of an Event of Default not
waived by Purchaser; (v) the substantial consummation or effective
date of any Chapter 11 plan in the Chapter 11 Cases; (vi) the date
the Bankruptcy Court enters an order for the conversion of any of
the Chapter 11 Cases of any Debtors to a case under chapter 7 of
the Bankruptcy Code; and (vii) dismissal of any of the Chapter 11
Cases of any Debtor; provided that, upon written request of Issuer,
the Scheduled Maturity Date may be extended up to 15 calendar days
(or such later date as agreed by Purchaser) in Purchaser's sole
discretion.
The Debtors and the Pre-Petition Secured Parties have amended the
Pre-Petition NPA multiple times since 2022 to provide covenant
relief to the Debtors. In September 2022, Capstone engaged
Greenhill & Co., LLC to lead a refinancing process and provide
investment banking services.
However, the refinancing process was unsuccessful, and Capstone
requested Greenhill to lead a sale process. Despite no buyer,
Capstone's advisors began negotiating potential restructuring
scenarios. In mid-2023, Capstone agreed with the Pre-Petition
Secured Parties that a comprehensive restructuring solution was
necessary to delete Capstone's balance sheet. After extensive
negotiations, the Debtors and the Pre-Petition Secured Parties
entered into the Transaction Support Agreement (TSA), which
provides terms and milestones for a comprehensive in-court
restructuring implemented through a debt-for-equity exchange. The
TSA provides for the Debtors' reorganization as a going concern
with a substantially leveraged capital structure and sufficient
liquidity to implement their business plan. The Pre-Petition
Secured Parties have also agreed to fund the DIP Facility and
permit the Debtors to use cash collateral on a consensual basis.
The parties to the Amended and Restated Note Purchase Agreement,
dated as of October 1, 2020, are (a) Capstone, as issuer, (b)
Capstone International and Capstone Financial Services, as
guarantors, (d) Goldman Sachs Specialty Lending Group, L.P., as
collateral agent, and (e) Broad Street Credit Holdings LLC, as
purchaser. On September 22, 2023, the Prepetition NPA Purchaser
purchased additional notes in the amount of $3 million issued by
the Prepetition Note Issuer under the Prepetition NPA. As of the
Petition Date, the Debtors were indebted to the Prepetition Secured
Parties, inclusive of the Prefunding Notes, in the aggregate amount
of $57 million.
As of the Petition Date, the Debtors were indebted to the
Pre-Petition Secured Parties, in the aggregate amount of $57
million.
Subject to the entry of the Interim Order, the full amount of the
Prefunding Notes and a portion of the other Prepetition Secured
Parties Claims in a combined aggregate principal amount of $18
million will be converted into DIP Notes, and the Prepetition
Secured Parties Claims will be reduced by such applicable amounts,
on a dollar-for-dollar basis concurrently therewith.
As adequate protection, the Prepetition Secured Parties are granted
valid, perfected, postpetition security interests and liens in and
on all of the Prepetition Collateral, provided, however, that the
Replacement Liens will only be and remain subject and subordinate
to (i) the DIP Liens and/or payment of any DIP Claims on account
thereof, (ii) the Permitted Priority Liens (other than the
Prepetition Liens) and (iii) the Carve-Out for U.S. Trustee fees,
clerk of court fees and fees payable to bankruptcy professionals
working on the cases. The Prepetition Secured Parties are also
granted a superpriority claim with the priority set forth in 11
U.S.C. section 364(c).
A copy of the order is available at https://urlcurt.com/u?l=zqOWvx
from PacerMonitor.com.
About Capstone Green Energy Corporation
Capstone Green Energy Corporation build microturbine energy systems
and battery storage systems that allow customers to produce power
on-site in parallel with the electric grid or stand-alone when no
utility grid is available. Capstone Green offers microturbines
designed for commercial, oil and gas, and other industrial
applications.
Capstone Green and affiliated sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 23-11634) on
September 28, 2023. In the petition signed by John Juric, chief
financial officer, the Debtor disclosed $104,000,000 in total
assets and $111,000,000 in total debt.
Judge Laurie Selber Silverstein oversees the case.
Katten Muchin Rosenman LLP represents the Debtors as legal counsel,
Young Conaway Stargatt & Tayloor LLP as co-counsel, Riveron RTS,
LLC as financial advisor, and Kroll Restructuring Administration
LLC as claims, noticing & solicitation agent and administrative
advisor.
CASCADE FINANCIAL: Seeks Chapter 11 Bankruptcy
----------------------------------------------
Cascade Financial & Funding LLC filed for Chapter 11 protection in
the Western District of Washington. According to court filing, the
Debtor reports between $1 million and $10 million in debt owed to 1
and 49 creditors. The petition states funds will be available to
unsecured creditors.
A telephonic meeting of creditors under 11 U.S.C. Section 341(a) is
slated for October 30, 2023, at 10:00 AM.
About Cascade Financial & Funding
Cascade Financial & Funding LLC is a Single Asset Real Estate (as
defined in 11 U.S.C. Sec. 101(51B)).
Cascade Financial & Funding LLC sought relief under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. W.D. Wash. Case No. 23-41571) on
Sept. 14, 2023. In the petition filed by Binh Tran, as manager
member, the Debtor reports estimated assets and liabilities between
$1 million and $10 million each.
Honorable Bankruptcy Judge Brian D Lynch handles the case.
CELSIUS NETWORK LLC: SEC Questions Coinbase Role in Bankruptcy Plan
-------------------------------------------------------------------
Olga Kharif and Jonathan Randles of Bloomberg News report that the
US Securities and Exchange Commission said it has concerns about
Coinbase Global Inc.'s proposed involvement in Celsius Network's
plan to emerge from bankruptcy.
Under the proposed plan, Celsius agreed to engage Coinbase to
distribute assets to international customers. In a filing on
Friday, September 22, 2023, the SEC — which charged Coinbase
earlier this year with operating as an unregistered securities
exchange, broker and clearing house — said the agreements "go far
beyond the services of a distribution agent, contemplating
brokerage services and master trading services that implicate many
of the concerns" raised in its suit.
About Celsius Network
Celsius Network LLC -- http://www.celsius.network/-- is a
financial services company that generates revenue through
cryptocurrency trading, lending, and borrowing, as well as by
engaging in proprietary trading.
Celsius helps over a million customers worldwide to find the path
towards financial independence through a compounding yield service
and instant low-cost loans accessible via a web and mobile app.
Celsius has a blockchain-based fee-free platform where membership
provides access to curated financial services that are not
available through traditional financial institutions.
The Celsius Wallet claims to be one of the only online crypto
wallets designed to allow members to use coins as collateral to get
a loan in dollars, and in the future, to lend their crypto to earn
interest on deposited coins (when they're lent out).
Crypto lenders such as Celsius boomed during the COVID-19 pandemic,
drawing depositors with high interest rates and easy access to
loans rarely offered by traditional banks. But the lenders'
business model came under scrutiny after a sharp sell-off in the
crypto market spurred by the collapse of major tokens terraUSD and
luna in May 2022.
New Jersey-based Celsius froze withdrawals in June 2022, citing
"extreme" market conditions, cutting off access to savings for
individual investors and sending tremors through the crypto
market.
The list of major crypto firms that have filed for bankruptcy
protection in 2022 now includes Celsius Network, Three Arrows
Capital and Voyager Digital.
Celsius Network, LLC and its subsidiaries sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case
No.22-10964) on July 14, 2022. In the petition filed by CEO Alex
Mashinsky, the Debtors estimated assets and liabilities between $1
billion and $10 billion.
The Debtors tapped Kirkland & Ellis, LLP and Kirkland & Ellis
International, LLP as bankruptcy counsels; Fischer (FBC & Co.) as
special counsel; Centerview Partners, LLC as investment banker; and
Alvarez & Marsal North America, LLC as financial advisor. Stretto
is the claims agent and administrative advisor.
On July 27, 2022, the U.S. Trustee appointed an official committee
of unsecured creditors. The committee tapped White & Case, LLP as
bankruptcy counsel; Elementus Inc. as blockchain forensics advisor;
M3 Advisory Partners, LP as financial advisor; and Perella Weinberg
Partners, LP as investment banker.
Shoba Pillay, Esq., is the examiner appointed in the Debtors'
Chapter 11 cases. Jenner & Block, LLP and Huron Consulting
Services, LLC serve as the examiner's legal counsel and financial
advisor, respectively.
CHEEKTOWAGA CONCRETE: Mark Schlant Named Subchapter V Trustee
-------------------------------------------------------------
The U.S. Trustee for Region 2 appointed Mark Schlant, Esq., at
Zdarsky, Sawicki & Agostinelli, LLP as Subchapter V trustee for
Cheektowaga Concrete, LLC.
Mr. Schlant will be paid an hourly fee of $275 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Schlant declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Mark J. Schlant, Esq.
Zdarsky, Sawicki & Agostinelli, LLP
1600 Main Place Tower
350 Main St.
Buffalo, NY 14202
Phone: (716) 855-3200
Email: mschlant@zsalawfirm.com
About Cheektowaga Concrete
Cheektowaga Concrete, LLC is a cement and concrete product
manufacturer based in Hamburg, N.Y.
The Debtor filed Chapter 11 petition (Bankr. W.D.N.Y. Case No.
23-10949) on Sept. 19, 2023, with $3,429,101 in assets and
$7,880,382 in liabilities. Rosanne DiPizio, general manager, signed
the petition.
Robert B. Gleichenhaus, Esq., at Gleichenhaus, Marchese & Weishaar,
P.C. represents the Debtor as legal counsel.
DELTA LLC: Affiliate Seeks Cash Collateral Access
-------------------------------------------------
Integrated Insight Therapy, LLC, an affiliate of Delta, LLC, asks
the U.S. Bankruptcy Court for the District of Colorado for
authority to use cash collateral and provide adequate protection.
The Debtor's cash-flow arises in from two primary sources: fee-for
service and grant income. The former accounts for roughly 51% of
the Debtor's revenue and the latter accounts for roughly 49% of the
Debtor's revenue.
The following entities may have an interest in the cash
collateral:
(a) Lendora Capital
(b) Kapitus
(c) Cedar Advance
(d) Delta Bridge Funding
(e) Capital Assist
(f) SBA
(g) Marlin Bank (succeeded by HPS Investment Partners LLC)
Each of the Prepetition Lienholders had an agreement with the
Debtor by which the Debtor was obligated to pay the Prepetition
Lienholders, which granted liens and security interests in the
Debtor's property.
As of the Petition Date, the Debtor had defaulted on each of the
Prepetition Lienholder Contracts. The Debtor has no ability to
service or to repay that debt. The Prepetition Lienholders
presently have the right to foreclose on the Debtor's assets and to
exercise other remedies, although they have not yet taken these
steps.
Prior to the Petition Date, Capital Assist utilized certain
pre-judgment remedies arising under Connecticut law to obtain a
payment of $167,500 from the Debtor. The Debtor submits such
transfer was a preferential transfer that arose outside the
ordinary course of business. The Debtor intends to commence an
adversary proceeding to recover the Preferential Transfer.
Prior to the Petition Date, MCA Resolve, LLC received payments from
the Debtor to be held in an escrow account. MCA has not performed
services for the Debtor and has not returned the funds from the
escrow account. The Debtor submits such transfers were fraudulent
transfers for which the Debtor did not receive reasonably
equivalent value that are subject to avoidance. The Debtor intends
to commence an adversary proceeding to recover the Fraudulent
Transfers.
The Debtor is offering to provide the following as adequate
protection of the Prepetition Lienholders' interest in property of
the Debtor: (a) the recovery from the Preference Adversary
Proceeding, and (b) the recovery from the Fraudulent Transfers
Adversary Proceeding.
As adequate protection for the use of cash collateral, the Debtor
proposes to provide to the Prepetition Lienholders, as adequate
protection (a) replacement liens, and (b) certain other covenants
and agreements, set forth in the proposed order.
A copy of the motion is available at https://urlcurt.com/u?l=zzyZNF
from PacerMonitor.com.
About Delta, LLC
Delta, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Iowa Case No. 23-14130-JGR) on
September 13, 2023. In the petition signed by Joel Watts, founder,
the Debtor disclosed up to $50,000 in assets and up to $1 million
in liabilities.
Eric Langston, Esq., at Aegis Law, represents the Debtor as legal
counsel.
DIOCESE OF CAMDEN: Revised Bankruptcy Plan Insurer Rights Amended
-----------------------------------------------------------------
Alex Wolf of Bloomberg Law reports that the Diocese of Camden, New
Jersey filed a revised bankruptcy reorganization plan with
amendments aimed at preserving the legal rights of insurers who
oppose provisions of a proposed clergy abuse victim settlement.
The diocese's amended Chapter 11 plan, filed Friday, September 22,
2023, is intended to fix issues cited by the US Bankruptcy Court
for the District of New Jersey when it rejected a previous version
of the plan last August 2023.
About The Diocese of Camden, NJ
The Diocese of Camden, New Jersey is a nonprofit religious
corporation organized pursuant to Title 16 of the Revised Statutes
of New Jersey. The Diocese is the secular legal embodiment of the
Roman Catholic Diocese of Camden, a juridic person recognized under
Canon Law.
The Diocese of Camden sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D.N.J. Case No. 20-21257) on Oct. 1, 2020.
The petition was signed by Reverend Robert E. Hughes, vicar General
and vice president. At the time of the filing, the Debtor had
total assets of $53,575,365 and liabilities of $25,727,209. Judge
Jerrold N. Poslusny Jr. oversees the case. McManimon, Scotland &
Baumann, LLC, is the Debtor's legal counsel.
DIVE PLACE II: Unsecureds to Get $2,500 per Quarter for 3 Years
---------------------------------------------------------------
The Dive Place II, LLC, filed with U.S. Bankruptcy Court for the
Middle District of Florida a Final Subchapter V Plan of
Reorganization dated September 28, 2023.
TDP is a Florida limited liability company formed on February 27,
2015, which maintains its principal business address and place of
business at a leased premises located at: 15502 Stoney Brook West
Parkway, Suite 128, Winter Garden, Florida 34787.
TDP is managed and controlled by its managing members, Mr. Noel
Hansen and Mr. Bradley Ecton who are also certified dive
instructors. TDP is a Scuba Diving International ("SDI") and
Technical Diving International ("TDI") certified dive center which
offers open water, advanced diver, and technical diver
certifications, as well as specialty certifications including
drysuit diver, wreck diver, search and recovery, and deep diver.
Shortly before the commencement of the Debtor's chapter 11 case,
TDP was notified that a hold was placed of its bank accounts by
Zahav Asset Management, LLC, a short-term lender of the d\Debtor
which commenced litigation in New York in an attempt to collect a
debt.
Rather than consume the Debtor's resources litigating matters in
various forums, Mr. Hansen and Mr. Ecton elected to reorganize the
Debtor through the Chapter 11 process. The Bankruptcy Case was
initiated with the affiliate case of Gumtree Digital, LLC, which
case was voluntarily dismissed on September 6, 2023 by Order of the
Bankruptcy Court.
Class 7 consists of all Allowed General Unsecured Claims against
The Dive Place II, LLC. In full satisfaction of their Allowed Class
7 General Unsecured Claims, Holders of Class 7 Claims shall receive
pro rata Distributions of $2,500.00 over a term of 3 years Pro Rata
Distributions shall be made to Holders of Allowed Unsecured Claims
on a quarterly basis (i.e., every three months), commencing on the
first day of each third month after the date of entry of the
Confirmation Order, and continuing on the first day of each third
month thereafter.
In addition to the quarterly Distributions, Class 7 Claimholders
shall also receive a pro rata share of the net proceeds recovered
from all Causes of Action after payment of professional fees and
costs associated with such collection efforts, and after
Administrative Claims and Priority Claims are paid in full. The
maximum Distribution to Class 7 Claimholders shall be equal to the
total amount of all Allowed Class 7 General Unsecured Claims. Class
7 is Impaired.
Class 8 consists of all Allowed Unsecured Claims of: (i) Marine
Sports MFG, Inc.; (ii) Guardian Scuba of Florida, LLC; and (iii)
Ocean Reef Group (the "Invoice Trade Creditors"). In full
satisfaction of their respective Class 8 Allowed Unsecured Claims,
the Invoice Trade Creditors shall receive equal monthly
installments such that their respective Allowed Claims are
satisfied within 18 months of the Effective Date. Class 8 is
Impaired.
Class 9 consists of all equity interests in The Dive Place II, LLC.
Class 9 Interest Holders shall retain their respective Interests in
TDP in the same proportions (i.e., 50% Interest to Noel Hansen and
50% to Brad Ecton) as they existed as of the Petition Date. Class 9
is Unimpaired.
The Plan contemplates TDP will continue to manage and operate its
business in the ordinary course, but with restructured debt
obligations. It is anticipated that the revenue from the continued
operation of TDP's business will be sufficient to satisfy all
obligations of TDP under the Plan.
Funds generated from TDP's operation through the Effective Date
will be used for Plan Payments; however, TDP's cash on hand as of
Confirmation will be available for payment of Administrative
Expenses.
A full-text copy of the Final Subchapter V Plan dated September 28,
2023 is available at https://urlcurt.com/u?l=nTKVpT from
PacerMonitor.com at no charge.
Counsel for the Debtor:
Daniel A. Velasquez, Esq.
Latham Luna Eden & Beaudine, LLP
201 S. Orange Ave., Suite 1400
Orlando, FL 32801
Tel: (407) 481-5800
Fax: (407) 481-5801
Email: jluna@lathamluna.com
About The Dive Place II
The Dive Place II LLC is a Scuba Diving International and Technical
Diving International certified dive center which offers open water,
advanced diver, and technical diver certifications, as well as
specialty certifications including drysuit diver, wreck diver,
search and recovery, and deep diver. In addition to its
certification classes, TDP coordinates and conducts special dive
events at a variety of dive sites around the State of Florida and
sells the full range of dive equipment at its retail store in
Winter Garden, Florida.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Fla. Case No. 23-00907) on March 13,
2023. In the petition signed by Noel Hansen, managing member, the
Debtor disclosed up $500,000 in assets and up to $1 million in
liabilities.
Daniel A. Velasquez, Esq., at Latham Luna Eden and Beaudine LLP, is
the Debtor's counsel.
DNA SERVERS: Case Summary & 17 Unsecured Creditors
--------------------------------------------------
Debtor: DNA Servers, Inc.
d/b/a Orange Computers
11400 Dorsett Road
Maryland Heights, MO 63043
Business Description: Orange Computers is a distributor of Dell
and HP refurbished servers and accessories.
Chapter 11 Petition Date: October 5, 2023
Court: United States Bankruptcy Court
Eastern District of Missouri
Case No.: 23-43588
Debtor's Counsel: David M. Dare, Esq.
HERREN, DARE & STREETT
439 S. Kirkwood Road, Suite 204
St. Louis, MO 63122
Tel: 314-965-3373
Fax: 314-965-2225
Email: hdsstl@hdsstl.com
Total Assets: $135,700
Total Liabilities: $3,320,640
The petition was signed by David Harris as Board Member.
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/SYCQ5OQ/DNA_Servers_Inc__moebke-23-43588__0001.0.pdf?mcid=tGE4TAMA
EAGLE TRUCKLINES: Case Summary & Unsecured Creditors
----------------------------------------------------
Three affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Eagle Trucklines, Inc. 23-43044
180 State Street
Southlake, TX 76092-7632
Eagle Trans, Inc. 23-43045
4435 E Chandler Blvd
Phoenix, AZ 85048
Eagle Fast Ways, Inc. 23-43046
525 Woodland Square Blvd
Conroe, TX 77384-2212
Business Description: The Debtors are part of the general
freight trucking industry.
Chapter 11 Petition Date: October 4, 2023
Court: United States Bankruptcy Court
Northern District of Texas
Judge: Hon. Edward L. Morris
Debtors' Counsel: Robert T. DeMarco, Esq.
DEMARCO MITCHELL, PLLC
500 N. Central Expressway Suite 500
Plano, TX 75074
Tel: (972) 578-1400
Email: robert@demarcomitchell.com
Each Debtor's
Estimated Assets: $1 million to $10 million
Each Debtor's
Estimated Liabilities: $1 million ton $10 million
The petitions were signed by Gurinder Chouhan as president.
Full-text copies the petitions containing, among other items, lists
of the Debtors' unsecured creditors are available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/GEZH3AI/Eagle_Trucklines_Inc__txnbke-23-43044__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/GNFHGEY/Eagle_Fast_Ways_Inc__txnbke-23-43046__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/GDOWG5Q/Eagle_Trans_Inc__txnbke-23-43045__0001.0.pdf?mcid=tGE4TAMA
ELMER BUCHTA: Hits Chapter 11 Bankruptcy Protection
---------------------------------------------------
Clarissa Hawes of Freight Waves reports that an 85-year-old
Indiana-based trucking and logistics company, Elmer Buchta Trucking
LLC, and its affiliates recently filed for Chapter 11 bankruptcy
protection less than nine months after it was acquired by
private-equity firm Transport Acquisitions.
Founded in 1938, Otwell, Indiana-based Elmer Buchta Trucking, which
offers bulk, dry van and pneumatic trucking services, has 100
drivers and more than 230 power units, according to the Federal
Motor Carrier Safety Administration’s SAFER website.
No reason was given as to why the entities were forced to file for
bankruptcy protection.
Transport Acquisitions purchased the trucking company and its
affiliates in January 2023 from the Wright Family Investment Group,
which bought the entities in 2008.
In court filings, Transport Acquisitions and ElenaRose Capital are
jointly listed as the lead bankruptcy case as both have ownership
in the entities. Besides Elmer Buchta Trucking, the petition lists
two other entities in its Chapter 11 filing, Buchta Leasing LLC of
Princeton, Indiana, and WBF LLC, of Otwell, Indiana. WBF has five
power units and four drivers and hauls liquids and gases, according
to the FMCSA website.
The petition, filed in the U.S. District Court for the Southern
District of Indiana on Sept. 8, 2023 lists Louis Capolino of
Apollo, Florida, as president and manager of the entities.
Elmer Buchta Trucking lists its assets as between $1 million and
$10 million and its liabilities as between $10 million and $50
million. The petition lists the number of creditors as up to 199
but states that funds will be available to unsecured creditors once
it pays administrative fees.
The two largest secured creditors listed in the petition are KTB
Equity Inc. of Evansville, Indiana, and Peapack Capital of
Morristown, New Jersey, owed about $22 million apiece for the
entities' equipment.
Attorney Weston E. Overturf, of Kroger, Gardis & Regas LLP of
Indianapolis, did not respond to FreightWaves’ request seeking
comment.
Among the trucking and logistics company’s top unsecured
creditors are Buchta Leasing, owed more than $684,000; National
Interstate Insurance of Richfield, Ohio, owed nearly $751,000; and
Heritage Petroleum of Evansville, owed over $128,000.
The petition lists that the Internal Revenue Service in
Indianapolis is owed nearly $36,000 for payroll taxes.
Prior to filing for bankruptcy, Capolino received $325,000 from
January to August, according to court documents. A creditors
meeting is set for October 10, 2023.
About Elmer Buchta Trucking LLC
Elmer Buchta Trucking LLC is an 85-year-old Indiana-based trucking
and logistics company.
Elmer Buchta Trucking LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Ill. Case No. 23-70668) on
September 8, 2023. In its petition, it listed assets as between $1
million and $10 million and its liabilities as between $10 million
and $50 million.
The Honorable Bankruptcy Judge Andrea K. McCord oversees the case.
The Debtor is represented by:
Anthony Thomas Carreri, Esq.
Kroger Gardis & Regas LLP
111 Monument Circle
Suite 900
Indianapolis, IN 46204
Tel. No. 317-777-7447
Email: ACarreri@kgrlaw.com
Jason T. Mizzell, Esq.
Kroger Gardis & Regas, LLP
111 Monument Circle
Suite 900
Indianapolis, IN 46204-5125
Tel. No. 317-777-7434
Fax : 317-264-6832
Email: jmizzell@kgrlaw.com
Weston Erick Overturf, Esq.
Kroger Gardis & Regas, LLP
111 Monument Circle
Suite 900
Indianapolis, IN 46204
Tel. No. 317-777-7443
Email: woverturf@kgrlaw.com
EPWORTH VILLA: Has $4MM DIP Loan from Hamlin Capital
----------------------------------------------------
Central Oklahoma United Methodist Retirement Facility, Inc., dba
Epworth Villa, asks the U.S. Bankruptcy Court for the Western
District of Oklahoma for authority to use cash collateral and
obtain postpetition financing.
The Debtor obtained up to $4 million in funding commitments from
clients of Hamlin Capital Management, LLC. Interest rate is set at
2 business days prior to closing at a rate equal to the 2-year
Treasury rate plus 450 basis points with a floor of 8.75%. Hamlin
Capital Advisors LLC is the structuring agent under the DIP
facility. BancFirst is the Existing Bond Trustee.
The DIP Facility is due and payable up to two years.
The Debtor agrees that failure to materially comply with these
milestone covenants will constitute an Event of Default, unless any
of the conditions have been waived or modified by the Existing Bond
Trustee in its sole discretion:
(i) On Tuesday of each week (or such other day as may be
agreed upon by the Parties), the Debtor will make available
representatives reasonably acceptable to the DIP Lender, the
Bondholder Representative and the Existing Bond Trustee for a
telephone conference call with the DIP Lender, the Bondholder
Representative, the Existing Bond Trustee, holders of the Existing
Bonds and DIP Bonds who have executed a confidentiality agreement
with the Debtor, and their respective agents, advisors and/or
representatives to discuss the cash flows and operations of the
Facility, including the Debtor's compliance with the Budget and
such other matters as are relevant or are reasonably requested by
the DIP Lender, the Bondholder Representative and the Existing Bond
Trustee;
(ii) On the Petition Date, the Debtor filed a motion to assume
that certain Plan Support Agreement dated as of September 25, 2023;
and
(iii) Each milestone set forth in the PSA will constitute a
Bankruptcy Milestone for purposes of the Interim Order.
Epworth Villa is duly licensed to operate its Life Plan Community
and remains in good standing with all relevant regulatory
authorities. As of the Petition Date, Epworth Villa serves a
community of approximately 401 residents.
Epworth Villa is the maker of these promissory notes, payable to
the order of Oklahoma County Finance Authority:
a. First Mortgage Note, Series 2004B, dated January 5, 2005,
in the original principal amount of $5 million, payable with
interest thereon as therein provided, having a present balance of
$3.5 million;
b. First Mortgage Note, Series 2005A, dated December 7, 2005,
in the original principal amount of $11.460 million, payable with
interest thereon as therein provided, having a present balance of
$8 million;
c. First Mortgage Note, Series 2005B, dated December 7, 2005,
in the original principal amount of $ million, payable with
interest thereon as therein provided, having a present balance of
$2 million; and
d. First Mortgage Note, Series 2012A, dated December 19, 2012,
in the original principal amount of $72, payable with interest
thereon as therein provided, having a present balance of
$62,875,000.
As of the date of commencement of the case, the current aggregate
indebtedness of Epworth Villa to OCFA under the Notes totals $76
million.
As adequate protection for the use of cash collateral, the Trustee
will be granted continuing, valid, binding, enforceable,
non-avoidable, and automatically and properly perfected
postpetition security interests in and liens on the DIP Collateral,
including the Prepetition Bond Collateral which liens will prime
and be senior to the Prepetition Bond Liens.
As additional adequate protection solely for any Diminution, the
Trustee will have a valid, perfected and enforceable continuing
supplemental lien on, and security interest in, all of the assets
of the Debtor.
As additional adequate protection solely for any Diminution, the
Trustee will receive a superpriority expense claim allowed under 11
U.S.C. section 507(b) against all assets of the Debtor's estate.
The Pre-Petition Superpriority Claim will have priority over any
and all other obligations, liabilities and indebtedness of the
Debtor.
* * *
A hearing on the matter was held October 4, 2023 at 10 a.m.
Following the hearing, the Court granted the Debtor's request on an
interim basis. "Based on the statements made on the record the
Court will approve the Amended Motion to Approve the
Debtor-in-Possession Financing and Use of Cash Collateral . . . on
an interim basis with the changes to the proposed order as
discussed on the record," the Court held.
The final hearing will be held on Oct. 19, 2023, at 9:30 a.m., 6th
Floor Courtroom.
A copy of the motion is available at https://urlcurt.com/u?l=u3VM2D
from PacerMonitor.com.
About Central Oklahoma United Methodiest Retirement
Facility
Central Oklahoma United Methodiest Retirement Facility, Inc. dba
Epworth Villa is a Life Plan Community offering vibrant retirement
living for residents ages 62 and older. Located in Northwest
Oklahoma City, Epworth Villa is a not-for-profit 501(c)(3)
community affiliated with the Oklahoma Conference of the United
Methodist Church. Epworth Villa offers distinctive apartment,
cottage and garden home residences, along with a wide range of
convenient services and amenities. Epworth Villa offers a complete
continuum of care including independent living, assisted living,
memory care assisted living, skilled nursing, rehabilitation,
respite, long-term care, and long-term memory care.
Epworth Villa is duly licensed to operate its Life Plan Community
and remains in good standing with all relevant regulatory
authorities.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Okla. Case No. 23-12607) on September
29, 2023. In the petition signed by Ron Kelly, president and chief
operating officer, the Debtor disclosed up to $50 million in assets
and up to $100 million in liabilities.
Sidney K. Swinson, Esq., at Gable & Gotwals, represents the Debtor
as legal counsel.
ESJ TOWERS: Committee Seeks to Hire Bankruptcy Counsel
------------------------------------------------------
The official committee of unsecured creditors appointed in the
Chapter 11 case of ESJ Towers, Inc. seeks approval from the U.S.
Bankruptcy Court for the District of Puerto Rico to employ the Law
Office of Jonathan A. Backman as lead bankruptcy counsel and Julio
Cesar Alejandro Serrano, Esq., an attorney at JCAS Law, as local
counsel.
The committee requires legal counsel to:
(a) give advice with respect to the duties and powers of the
committee under the Bankruptcy Code and related law in connection
with the continued operation or liquidation of the business and
financial affairs of the Debtor;
(b) assist the committee with respect to legal issues arising
from the current state of the Debtor's affairs, the desirability of
the continuation of its business, and any other matters relevant to
this case;
(c) assist the committee concerning the formulation and terms
of any proposed plan of liquidation or reorganization;
(d) assist the committee in preserving or disposing of the
assets of the estate; and
(e) render legal advice on such other matters as may arise
from time to time for which the committee may need legal
assistance.
Mr. Backman will be paid a retainer of $25,000 and Mr. Alejandro a
retainer of $10,000.
The committee will compensate Mr. Backman and Mr. Alejandro at
their hourly rates of $350 and $160, respectively. Mr. Backman's
paralegal will be billed at $75 per hour.
In addition, the attorneys will seek reimbursement for expenses
incurred.
As disclosed in court filings, both firms are "disinterested"
within the meaning of Section 101(14) of the Bankruptcy Code.
The firms can be reached through:
Jonathan A. Backman, Esq.
Law Office of Jonathan A. Backman
117 North Center Street
Bloomington, IL 61701
Telephone: (309) 820-7420
Facsimile: (309) 820-7430
Email: jbackman@backlawoffice.com
- and –
Julio C. Alejandro Serrano, Esq.
JCAS Law
100 Plaza Pradera SC, Ste. 20
PMB 130
Toa Baja, PR 00949
Telephone: (787) 647-6632
Facsimile: (787) 647-6632
Email: alejandroj.abogadopr@gmail.com
About ESJ Towers
ESJ Towers, Inc. owns the ESJ Towers in Carolina, P.R. The luxury
apartments and condo units at ESJ Towers have direct access to Isla
Verde Beach, widely considered one of the best in Puerto Rico.
ESJ sought protection under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. D.P.R. Case No. 22-01676) on June 10, 2022, with as much as
50 million in both assets and liabilities. ESJ President Keith St.
Clair signed the petition.
Judge Enrique S. Lamoutte Inclan oversees the case.
The Debtor tapped Charles A. Cuprill, Esq., at Charles A. Cuprill,
PSC Law Offices as bankruptcy counsel; Ramon Luis Nieves, Esq., at
RL Legal Consulting Services, LLC and Luis Daniel Muniz, Esq., as
special counsels; Dage Consulting CPAS, PSC as financial advisor;
CPA Luis R. Carrasquillo & Co., P.S.C. as financial consultant; and
De Angel & Compania, PA, LLC as auditor.
The U.S. Trustee for Region 21 appointed an official committee of
unsecured creditors on Sept. 12, 2022. The committee tapped the Law
Office of Jonathan A. Backman as lead bankruptcy counsel; Julio
Cesar Alejandro Serrano, Esq., at JCAS Law as local counsel; and
Dage Consulting CPAS, PSC as financial advisor.
FINISH MAN: Hires Law Office of Kevin K. Kercher as Counsel
-----------------------------------------------------------
The Finish Man, LLC seeks approval from the U.S. Bankruptcy Court
for the Eastern District of Pennsylvania to employ Law Office of
Kevin K. Kercher, Esquire, P.C. as counsel.
The firm will provide these services:
a. provide the Debtor with legal services with respect to
their power and duties as Debtor-in-Possession in continuing the
management of their assets;
b. prepare on behalf of Debtor necessary applications,
Answers, Orders, Reports, and other legal papers;
c. represent the Debtor in any matters involving contest with
secured or unsecured creditors;
d. assist the Debtor in providing legal services required to
negotiate and prepare a plan of reorganization; and
e. perform such other legal services for the Debtor as are
necessary and appropriate herein.
The firm will be paid at the rate of $350 per hour.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
The firm received a retainer of $7,500.
Kevin K. Kercher, a partner at Law Office of Kevin K. Kercher,
Esquire, P.C., disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached at:
Kevin K. Kercher, Esq.
LAW OFFICE OF KEVIN K. KERCHER, ESQUIRE, P.C.
881 Third St., Suite #C-2
The Fullerton Bldg.
Whitehall, PA 18052
Tel: (610) 264-4120
Fax: (610) 264-2990
About The Finish Man, LLC
The Finish Man, LLC filed a petition under Chapter 11, Subchapter V
of the Bankruptcy Code (Bankr. E.D. Pa. Case No. 23-12767) on Sept.
14, 2023, with as much as $50,000 in assets and $100,001 to
$500,000 in liabilities.
Judge Patricia M. Mayer oversees the case.
Kevin Kercher, Esq., at Kercher Law Offices represents the Debtor
as bankruptcy counsel.
FTX GROUP: Asset Recovery Task Speeds Up Prior SBF Trial
--------------------------------------------------------
Teresa Xie of Bloomberg News reports that FTX Chief Executive and
Restructuring Officer John J. Ray, whose team is overseeing a
mammoth asset recovery task after the crypto exchange's collapse,
is accelerating efforts to recoup billion of dollars just weeks
before FTX founder Sam Bankman-Fried heads to trial for what has
been called one of the biggest financial frauds in American
history.
The week started off in bankruptcy court, where FTX sued
Bankman-Fried's parents on Monday, September 18, 2023, to "recover
millions of dollars in fraudulently transferred and misappropriated
funds."
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.
G.I.K. INVESTMENT: U.S. Trustee Unable to Appoint Committee
-----------------------------------------------------------
The U.S. Trustee for Region 21, until further notice, will not
appoint an official committee of unsecured creditors in the Chapter
11 case of G.I.K. Investment, Corp., according to court dockets.
About G.I.K. Investment
G.I.K. Investment, Corp., a company in Miami Beach, Fla., filed
Chapter 11 petition (Bankr. S.D. Fla. Case No. 23-16863) on Aug.
28, 2023. Judge Robert A. Mark oversees the case.
Joel Aresty, Esq., at Joel M. Aresty, PA is the Debtor's legal
counsel.
GETTYSBURG RENTAL: Seeks Chapter 11 Bankruptcy
----------------------------------------------
Gettysburg Rental and Outdoor Power Equipment Center filed for
Chapter 11 protection in the Middle District of Pennsylvania.
According to court filing, the Debtor reports $500,000 and $1
million in debt owed to 1 and 49 creditors. The Petition states
funds will be available to unsecured creditors.
A meeting of creditors under 11 U.S.C. Section 341(a) is slated
for
October 17, 2023, at 2:00 PM.
About Gettysburg Rental and Outdoor
Gettysburg Rental and Outdoor Power Equipment Cent, doing business
as Gettysburg Rntl & Outdr Pwr Eqp Ctr LLC, provides party and
equipment rentals to Gettysburg and the surrounding areas.
Gettysburg Rental and Outdoor Power sought relief under Chapter 11
of the U.S. Bankruptcy code (Bankr. M.D. Penn. Case No. 23-02095)
on Sept. 14, 2023. In the petition filed by Gary DeCroes, as
member, the Debtor reports estimated assets and liabilities between
$500,000 and $1 million each.
Honorable Bankruptcy Judge Henry W Van Eck oversees the case.
The Debtor is represented by:
Brent Diefenderfer, Esq.
CGA Law Firm
720 York Road
Gettysburg, PA 17325
GETTYSBURG RENTAL: Seeks to Hire CGA Law Firm as Counsel
--------------------------------------------------------
Gettysburg Rental and Outdoor Power Equipment, LLC seeks approval
from the U.S. Bankruptcy Court for the Middle District of
Pennsylvania to employ CGA Law Firm as counsel.
The firm will represent to all legal matters relating to the
Chapter 11 proceedings.
The firm will be paid at these rates:
Brent C. Diefenderfer, Esq. $330 per hour
Staff $100 to $130 per hour
The firm will be paid a retainer in the amount of $ $8,500.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Brent C. Diefenderfer, a partner at CGA Law Firm, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Brent C. Diefenderfer, Esq.
CGA LAW FIRM
135 North George Street
York, PA 17401
Telephone: (717) 848-4900
About Gettysburg Rental And Outdoor
Power Equipment, LLC
Gettysburg Rental and Outdoor Power Equipment, LLC sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
M.D. Pa. Case No. 1:23-bk-02095-HWV) on September 14, 2023. In the
petition signed by Gary DeCroes, member, the Debtor disclosed up to
$1 million in both assets and liabilities.
Judge Henry W. Van Eck oversees the case.
Brent C. Diefenderfer, Esq., at CGA Law Firm, represents the Debtor
as legal counsel.
GOLDEN SEAHORSE: Unsecureds Owed $1.2M to $6M to be Paid in Full
----------------------------------------------------------------
Golden Seahorse LLC dba Holiday Inn Manhattan Financial District
submitted a First Amended Disclosure Statement to accompany its
First Amended Plan of Reorganization dated September 20, 2023.
The Plan is premised upon either a cure and reinstatement of the
Loan held by Wilmington Trust and HI FIDI pursuant to sections
1123(a)(5)(G) and 1124(2) of the Bankruptcy Code or a recasting and
modification of the Loan and the issuance of the New Note in the
Allowed Amount of the Claim(s) less the $10 million payment on the
Effective Date.
Pursuant to the Bankruptcy Court Decision issued by the Bankruptcy
Court on July 31, 2023, the Bankruptcy Court held that in order for
the Debtor to reinstate the Loan without affording Wilmington Trust
the right to vote for or against the Plan, the Debtor is required
to pay the default interest which Wilmington Trust asserts is at
least $18 million and if the Bankruptcy Court permits post-petition
interest at the default rate could be as much as $29 million. The
Debtor is exploring options to raise the funds required to
reinstate the Loan. However, at the Debtor's sole option, the Plan
provides for a modification and recasting of the Loan and the
issuance of the New Note which will entitle Wilmington Trust the
right to vote for or against the Plan.
The Debtor owns and operates the Hotel. The Hotel has been managed
by Crescent for several years, a third-party unaffiliated
management company that is known as one of the leading hotel
management companies in the industry. Many of the Hotel's employees
are employed by Crescent and the Hotel advances funds to Crescent
to cover the payroll and related expenses. Crescent receives a
management fee of 1.5% of the Hotel's revenues. In addition, the
Hotel outsources its housekeeping services with General Personnel
Services Inc. which provides the Hotel with approximately 60
housekeeping employees.
In addition to the Hotel, the Debtor also owns an adjacent
neighboring property located at 103 Washington Street, New York, NY
10006 whereby the Debtor leases space to a restaurant which is
owned by a relative of the Debtor's primary equity interest holder.
Initially the real property known as 99 Washington Street, New
York, NY, Block 53 Lot 2 (the "Real Property") was purchased by
McSam DT. McSam DT obtained a loan from Cathay Bank which was
utilized to construct the Hotel between 2010 and 2014. The Cathay
Bank loan was refinanced with UBS in the amount of $130 million
(the "UBS Loan"). In connection with the UBS Loan, McSam DT deeded
the Real Property to the Debtor. The UBS Loan was refinanced and
paid off in 2015 through a new loan with Bank of China for $135
million. Aside from a construction loan with Cathay Bank, McSam DT
borrowed $14 million from HI Wall Street pursuant to the EB-5 loan
program (the "EB-5 Loan"). The EB-5 Loan was an unsecured loan.
The Debtor believes the fair market value of the Hotel as of the
Confirmation Date is approximately $172 million, which is based
upon a recent appraisal. The Debtor believes the value of the
Hotel, as of the Petition Date, was approximately $169,500,000.00
which is based upon a retrospective appraisal. If the Debtor and
Wilmington Trust are unable to agree upon value of the Hotel, the
Bankruptcy Court will determine the value at or just prior to the
Confirmation Hearing. It may also be necessary for the Bankruptcy
Court to value the Hotel as of the Petition Date, as the valuation
on such date may have a material effect upon the Debtor's ability
to confirm the Plan. The Bankruptcy Court's determination of the
Hotel's value will in part determine the treatment of Wilmington
Trust's and HI FIDI's claim under the Plan. Further, based upon
Wilmington Trust's proofs of claim, the total amount due under the
Loan to Wilmington Trust and HI FIDI, as of the Petition Date,
inclusive of all interest, fees, and other charges, is
approximately $169 million without consideration of a prepayment
penalty of approximately $9 million. Finally, the Bankruptcy
Court's determination of value of the Hotel as well as the ultimate
Allowed Amount of Wilmington Trust's Claim(s) will impact whether
Wilmington Trust will have a Deficiency Claim in Class 4 of the
Plan.
Under the Plan, Class 4 General Unsecured Claims will receive cash
as payment. These Claims include trade Creditors, Claims of
professionals, the EB-5 Loan and Claims of Insiders for loans made
to the Debtor and depending upon the value of the Property (and
whether the Debtor is able to reinstate the Loan), may include
Wilmington Trust's Deficiency Claim. The Debtor believes the total
Allowed Class 4 Claims are between $1,200,000.00 and $6,000,000.00
exclusive of Wilmington Trust's Deficiency Claim. Class 4 is
impaired and entitled to vote for or against the Plan. All holders
of Allowed Class 4 Unsecured Claims (including any Deficiency
Claim), shall be paid in full without interest no later than the
first anniversary of the Effective Date. On the Effective Date, all
holders of Allowed Class 4 Claims will receive 50% of their Allowed
Claims in Cash and the remaining 50% will be paid in Cash on the
one-year anniversary of the Effective Date. In the event the
Property is sold prior to the first anniversary of the Effective
Date, the Allowed Class 4 Claims will be paid any remaining unpaid
amount of their Distributions from the Sale Proceeds.
The Debtor anticipates funding the Plan from the revenue generated
at the Hotel, as well as the Plan Contribution.8 Based upon the
Bankruptcy Court Decision, the Debtor estimates it will need a Plan
Contribution of approximately $20 million in addition to the funds
on hand generated from the Hotel's operations. The Debtor believes
based upon its projections the Hotel will continue to generate
sufficient cashflow to remain current on the monthly interest
payment of approximately $612,000 under the reinstated Loan, or if
the Debtor pursues the modification/recasting of the Loan, debt
service payments will be approximately $1 million per month.
In the event the Debtor is unable to raise the funds required to
reinstate the Loan in accordance with the Bankruptcy Court
Decision, the Debtor will exercise its rights under the Plan to
seek a modification/extension of the Loan. The Debtor intends to
obtain the monies required to pay Wilmington Trust the balloon
payment (approximately $134 million) on the Maturity Date by
refinancing the Property or selling the Property. The Debtor
believes that assuming a normal working mortgage financing
environment, the Reorganized Debtor will be able to refinance the
Property to satisfy the payment due to Wilmington Trust on or
before the Maturity Date.
Attached hereto as Exhibit "B" is the Debtor's seven (10) year
projection following the Effective Date which reflects the Plan
payments.
Attorneys for Golden Seahorse LLC, Debtor and
Debtor-in-Possession:
Scott S. Markowitz, Esq.
Rocco A. Cavaliere, Esq.
TARTER KRINSKY & DROGIN LLP
1350 Broadway, 11th Floor
New York, NY 10018
Tel.: (212) 216-8000
E-mail: smarkowitz@tarterkrinsky.com
rcavaliere@tarterkrinsky.com
A copy of the First Amended Disclosure Statement dated September
20, 2023, is available at https://tinyurl.ph/iYUqf from
PacerMonitor.com.
About Golden Seahorse
Golden Seahorse LLC, doing business as Holiday Inn Manhattan
Financial District, operates the Holiday Inn hotel, which is a
full-service hotel located at 99 Washington St., New York. It also
owns an adjacent neighboring property at 103 Washington St., New
York, whereby it leases space to Amazon Restaurant and Bar (doing
business as St. George Tavern). The Debtor believes the value of
the hotel is at least $165 million, an amount greater than the
$137.2 million in principal, together with accrued interest, due
pre-bankruptcy lenders.
Golden Seahorse sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 22-11582) on Nov. 29,
2022. In the petition signed by Jubao Xie, managing member of
Hysendal USA, LLC, the Debtor disclosed up to $500 million in both
assets and liabilities.
Judge Philip Bentley oversees the case.
Scott S. Markowitz, Esq., at Tarter Krinsky & Drogin LLP, is the
Debtor's counsel.
GREATER LIBERTY: Seeks to Hire Penachio Malara as Legal Counsel
---------------------------------------------------------------
Greater Liberty Pentecostal Church, Inc. seeks approval from the
U.S. Bankruptcy Court for the Southern District of New York to
employ Penachio Malara, LLP as counsel.
The Debtor requires legal counsel to:
(a) assist in the administration of the Debtor's Chapter 11
proceeding, the preparation of operating reports and complying with
applicable law and rules;
(b) review claims and resolve claims which should be
disallowed; and
(c) assist in reorganizing and confirming a Chapter 11 plan or
implementing an alternative exit strategy.
Prior to the filing, the firm received $7,500 from the Debtor which
included the filing fee.
The hourly rates of the firm's counsel and staff are as follows:
Anne Penachio $495
Francis Malara $400
Paralegal $225
Anne Penachio, Esq., an attorney at Penachio Malara, disclosed in a
court filing that the firm is a "disinterested person" as that term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Anne Penachio, Esq.
Penachio Malara LLP
245 Main Street-Suite 450
White Plains, NY 10601
Telephone: (914) 946-2889
Email: frank@pmlawllp.com
About Greater Liberty
Greater Liberty Pentacostal Church, Inc. filed a petition under
Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. S.D.N.Y.
Case No. 23-11473) on Sept. 11, 2023, with as much as $50,000 in
assets and $100,001 to $500,000 in liabilities. Jolene Wee of JW
Infinity Consulting, LLC has been appointed as Subchapter V
trustee.
Judge Philip Bentley oversees the case.
Anne J. Penachio, Esq., at Penachio Malara, LLP represents the
Debtor as legal counsel.
GREENBERG GOURMET: Court OKs Cash Collateral Access Thru Dec 31
---------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Maryland, Greenbelt
Division, authorized Greenberg Gourmet, LLC to use cash collateral
on an interim basis in accordance with the budget, through December
31, 2023.
PNC Bank, N.A. asserts a secured claim against the Debtor pursuant
to a term loan promissory note, and a UCC-1 Financing Statement
filed with the Maryland State Department of Assessments and
Taxation. PNC asserts an unpaid balance as of the Petition Date in
the amount of approximately $93,914, exclusive of fees, costs and
amounts that PNC is owed pursuant to the Business Access Line of
Credit Loan.
PNC asserts a security interest in and lien upon, among other
things, all accounts receivable, inventory, equipment, and the
proceeds of the foregoing.
As adequate protection for the Debtor's use of the cash collateral,
from and after the Petition Date, and any diminution of the value
of the cash collateral arising on account of the Debtor's use
thereof, PNC Bank, N.A. will receive adequate protection payments
of $1,491, per month.
To the extent the cash collateral is used by the Debtor and such
use results in a diminution of the value of the cash collateral,
PNC is entitled, pursuant to Sections 361(2) and 363(c)(2) of the
Bankruptcy Code, a replacement lien in and to all post-petition
assets of the Debtor, to the same extent and with the same priority
as PNC's interest in the Pre-Petition Collateral.
The liens and security interests granted to PNC, including the
Adequate Protection Liens, will become and are duly perfected
without the necessity for the execution, filing or recording of
financing statements, security agreements and other documents which
might otherwise be required pursuant to applicable non-bankruptcy
law for the creation or perfection of such liens and security
interests.
A further interim hearing on the matter is set for December 21 at 1
p.m.
A copy of the order is available at https://urlcurt.com/u?l=BjcEDh
from PacerMonitor.com.
The Debtor projects total expenses, on a monthly basis, as
follows:
$82,942 for October 2023;
$78,291 for November 2023; and
$80,985 for December 2023.
About Greenberg Gourmet
Greenberg Gourmet, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Md. Case No. 23-15301) on Julu 28,
2023. In the petition signed by Lee G. Greenberg, managing member,
the Debtor disclosed up to $100,000 in assets and up to $500,000 in
liabilities.
Judge Maria Elena Chavez-Ruark oversees the case.
Craig M. Palik, Esq., at McNamee Hosea, P.A., represents the Debtor
as legal counsel.
GWD INC: Seeks to Hire Kutner Brinen Dickey as Legal Counsel
------------------------------------------------------------
GWD, Inc., d/b/a American Overhead Door, seeks approval from the
U.S. Bankruptcy Court for the District of Colorado to employ Kutner
Brinen Dickey Riley, P.C. as legal counsel.
The firm will provide these services:
a. provide the Debtor with legal advice with respect to its
powers and duties;
b. aid the Debtor in the development of a plan of reorganization
under Chapter 11;
c. file the necessary petitions, pleadings, reports, and actions
which may be required in the continued administration of the
Debtor's property under Chapter 11;
d. take necessary actions to enjoin and stay until final decree
herein continuation of pending proceedings and to enjoin and stay
until final decree herein commencement of lien foreclosure
proceedings; and
e. perform all other legal services for the Debtor which may be
necessary herein.
The firm will be paid at these rates:
Jeffrey S. Brinen $500 per hour
Jenny Fujii $410 per hour
Jonathan M. Dickey $350 per hour
Keri L. Riley $350 per hour
Paralegal $100 per hour
The firm will be paid a retainer in the amount of $15,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Jeffrey S. Brinen, Esq., a partner at Dickey Riley, P.C., disclosed
in a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Kutner Brinen, Esq.
DICKEY RILEY, P.C.,
1660 Lincoln Street, Suite 1720
Denver, CO 80264
Tel: (303) 832-2400
Email: jmd@kutnerlaw.com
About GWD Inc.
GWD Inc. is an independent, non-franchise overhead door dealer in
Southern Colorado. The Debtor sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D. Colo. Case No. 23-14137) on
September 14, 2023. In the petition signed by Gary Dejong,
president, the Debtor disclosed $748,024 in assets and $3,089,574
in liabilities.
Judge Kimberley H. Tyson oversees the case.
Jonathan M. Dickey, Esq., at Kutner Brinen Dickey Riley PC,
represents the Debtor as legal counsel.
HARRINGTON ESTATES: Hires Radius Agent as Real Estate Agent
-----------------------------------------------------------
Harrington Estates, LLC seeks approval from the U.S. Bankruptcy
Court for the Central District of California to employ Radius Agent
as real estate agent.
The firm will provide these services:
a. provide the Debtor with real estate sales, including
working with Debtor's bankruptcy counsel to effectuate the sale of
real property of the estate known as 830 Harrington Rd., Glendale,
Los Angeles, California 91207; and
b. negotiate on behalf of Debtor, the sale of real property of
the estate; and
c. review on behalf of the Debtor offers for the sale of real
property of the estate, as well as working with inspection, escrow
and title companies.
The firm will be paid a commission 6 percent of the sales price.
Richard Szerman, a partner at Radius Agent, disclosed in a court
filing that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Richard Szerman
Radius Agent
28494 Westinghouse Place, Suite 204,
Valencia, CA 91355
Tel: (661) 253-3000
Email: richszerman@gmail.com
About Harrington Estates, LLC
Harrington Estates, LLC is a single asset real estate (as defined
in 11 U.S.C. Section 101(51B)). The company is based in Glendale,
Calif.
Harrington Estates filed voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. C.D. Calif. Case No.
23-14462) on July 18, 2023, with $1 million to $10 million in both
assets and liabilities. Anthony C. Burrell, chief executive
officer, signed the petition.
Judge Julia W. Brand presides over the case.
Louis J. Esbin, Esq., at the Law Offices of Louis J. Esbin
represents the Debtor as counsel.
HART INC: Court OKs $400,000 DIP Loan from Palisades
----------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Georgia
authorized Hart, Inc. to use cash collateral and obtain
postpetition financing, on an interim basis.
The Debtor is authorized to borrow and incur up to $400,000 in
post-petition financing from Palisades Ventures LP and Hart
Investors LLC in one or more draws. The Initial DIP Loans can be
repaid if the Debtor has sufficient liquidity without any
prepayment penalty. Initial DIP Loans that are repaid cannot be
reborrowed without the prior written consent of the DIP Lenders and
a Court order. The Initial DIP Loans will bear interest at the rate
of 13.00% per annum, compounded monthly.
The DIP facility is due and payable through the earlier to occur
of:
(i) March 1, 2024;
(ii) the occurrence of an Event of Default;
(iii) the Plan Effective Date; or
(iv) three days after the Borrower has either selected a bidder
other than the DIP Agent and/or DIP Lenders as the successful
bidder at the Auction in connection with an Alternative
Transaction, has stated in writing or publicly its intentions to
pursue an Alternative Transaction, or has taken any action to
pursue an Alternative Transaction other than in accordance with the
Bidding Procedures and Bidding Procedures Order.
However, if the Maturity Date is triggered under clause (iv), the
DIP Loans will be repaid in full, in cash at the closing of such
Alternative Transaction, which closing occur not later than the
closing date established by the Bidding Procedures Order, which
date will not be later than 120 days following the Petition Date.
The Debtor, as borrower, entered into a Senior Secured Promissory
Note dated June 27, 2023, with Hart Investors, as lender. As of the
petition date, the aggregate outstanding principal balance under
the Pre-Petition Secured Note was $1 million. The Pre-Petition
Lender asserts that (i) to secure the Pre-Petition Secured
Obligations, the Debtor granted to the Pre-Petition Secured Lender
first-priority security interests in and liens upon substantially
all of the Debtor's personal property assets, and (ii) all of the
Debtor's cash constitutes cash collateral or proceeds of the
Pre-Petition Collateral and, therefore, is cash collateral of the
PrePetition Secured Lender.
All obligations of the Borrower under the DIP Facility will be
secured by (i) first-priority priming liens on and security
interests in all of the Debtor's assets, (ii) first-priority liens
on and security interests in all of the Debtor's assets that are
not subject to existing liens, excluding any claims arising under
Chapter 5 of the Bankruptcy Code, and (iii) superpriority
administrative expense claims against the Borrower's bankruptcy
estate having priority over all administrative expenses.
As adequate protection, the Pre-petition Lender is granted
replacement liens and superpriority claims (junior to the DIP liens
and superpriority claims) and payment of reasonable fees and
expenses.
These events constitute an "Event of Default":
(a) The Debtor fails to pay any principal or other amount when
due; or
(b) The Debtor fails to comply with the provisions of the
Interim Order; or
(c) The Debtor fails to comply with the Initial Budget; or
(d) (i) The dismissal of the Case, (ii) the conversion of the
Case to a Chapter 7 case, (iii) the Debtor is removed from
possession, or (iv) the Debtor files or fails to oppose a motion
(other than one filed by the DIP Agent and/or DIP Lenders) seeking
any such relief; or
(e) A trustee (other than a subchapter V trustee), responsible
officer or examiner with enlarged powers relating to the Debtor,
the Collateral, the Pre-Petition Collateral, or the operation of
the Debtor's business is appointed; or
(f) The cessation of the DIP Liens and/or Superpriority Claims
to be valid, perfected and enforceable in all respects with the
priorities set forth in the Interim Order; or
(g) The Final Order, in form and substance reasonably
satisfactory to the DIP Agent and DIP Lenders, is not entered by
the date that is 25 calendar days after the date of entry of the
Interim Order; or
(h) Any person files a motion seeking standing to assert, or
asserts, a claim or challenge to the DIP Liens, the DIP
Obligations, the Superpriority Claims, the Pre-Petition Liens
and/or the Pre-Petition Secured Obligations, and the Court grants
such relief, or the Debtor directly or indirectly supports any
person or entity who files a motion seeking standing to assert, or
asserts, a claim or challenge to the DIP Liens, the DIP
Obligations, the Superpriority Claims, the Pre-Petition Liens
and/or the Pre-Petition Secured Obligations; or
(i) The Debtor incurs any indebtedness other than DIP
Refinancing Indebtedness and indebtedness incurred in the ordinary
course of the Debtor's business as it was operated prior to the
petition date.
A final hearing on the matter is set for October 18 at 1:30 p.m.
A copy of the Court's order is available at
https://urlcurt.com/u?l=ok5Af4 from PacerMonitor.com.
About Hart Inc.
Hart, Inc., provides underground electrical utility installation
and drill and boring services, doing work largely in the
Southeastern United States. The Debtor filed a Chapter 11
bankruptcy petition (Bankr. N.D. Ga. Case No. 23-53278) on April 6,
2023, listing under $10 million in estimated assets and under $50
million in estimated liabilities.
Judge Wendy L. Hagenau oversees the case.
Joseph Chad Brannen, Esq., of The Brannen Firm LLC, is the Debtor's
counsel.
HARTMAN SPE: Seeks to Hire Epiq Corporate as Administrative Advisor
-------------------------------------------------------------------
Hartman SPE, LLC seeks approval from the U.S. Bankruptcy Court for
the District of Delaware to employ Epiq Corporate Restructuring,
LLC.
The Debtor requires an administrative advisor to:
(a) assist with, among other things, solicitation, balloting,
and tabulation of votes, and prepare any related reports, as
required in support of confirmation of a Chapter 11 plan, and in
connection with such services, process requests for documents from
parties in interest;
(b) prepare an official ballot certification and, if
necessary, testify in support of the ballot tabulation results;
(c) assist with the preparation of the Debtor's schedules of
assets and liabilities and statements of financial affairs and
gather data in conjunction therewith;
(d) provide a confidential data room, if requested;
(e) manage and coordinate any distributions pursuant to a
Chapter 11 plan; and
(f) provide such other processing, solicitation, balloting,
and other administrative services.
Before the petition date, the Debtor provided Epiq a retainer in
the amount of $25,000.
The hourly rates of Epiq's professionals are as follows:
IT/Programming $65 – $85
Project Managers/Consultants/Directors $80 – $190
Solicitation Consultant $190
Executive Vice President, Solicitation $195
In addition, Epiq will seek reimbursement for expenses incurred.
Kate Mailloux, a senior director at Epiq, disclosed in a court
filing that the firm is a "disinterested person" within the meaning
of Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Kate Mailloux
Epiq Corporate Restructuring, LLC
777 Third Avenue, 12th Floor
New York, NY 10017
Telephone: (917) 359-4553
Email: kmailloux@epiqglobal.com
About Hartman SPE
Hartman SPE, LLC is a lessor of nonresidential buildings based in
Houston, Texas.
Hartman SPE filed a voluntary Chapter 11 petition (Bankr. D. Del.
Lead Case No. 23-11452) on Sept. 13, 2023, with $100 million to
$500 million in both assets and liabilities. David Wheeler,
president, signed the petition.
Judge Mary F. Walrath oversees the case.
The Debtor tapped Katten Muchin Rosenman, LLP as bankruptcy
counsel; Chipman Brown Cicero & Cole, LLP as Delaware counsel; and
Epiq Corporate Restructuring, LLC as administrative advisor.
HARTMAN SPE: Seeks to Hire Katten Muchin Rosenman as Legal Counsel
------------------------------------------------------------------
Hartman SPE, LLC seeks approval from the U.S. Bankruptcy Court for
the District of Delaware to employ the law firm of Katten Muchin
Rosenman, LLP.
The Debtor requires legal counsel to:
(a) give advice with respect to the powers and duties of the
Debtor in the continued management and operation of its business
and properties;
(b) advise and consult on the conduct of this Chapter 11
case;
(c) attend meetings and negotiate with representatives of
creditors and other parties in interest;
(d) take all necessary actions to protect and preserve the
Debtor's estate;
(e) prepare pleadings in connection with this Chapter 11
case;
(f) represent the Debtor in connection with obtaining
authority to obtain post-petition financing and use cash
collateral;
(g) advise the Debtor in connection with any potential sale of
assets;
(h) appear before the court and any appellate courts to
represent the interests of the Debtor's estate;
(i) take any necessary action on behalf of the Debtor to
negotiate, prepare, and obtain approval of a disclosure statement
and confirmation of a Chapter 11 plan and all documents related
thereto; and
(j) perform all other necessary legal services for the Debtor
in connection with the prosecution of this Chapter 11 case.
The hourly rates of the firm's counsel and staff are as follows:
Partners $835 - $1,795
Of Counsel $735 - $1,440
Counsel and Special Staff $460 - $1,230
Associates $300 - $935
Paraprofessionals $90 - $650
In addition, the firm will seek reimbursement for expenses
incurred.
John Mitchell, Esq., a partner at Katten Muchin Rosenman, also
provided the following in response to the request for additional
information set forth in Paragraph D.1 of the Revised U.S. Trustee
Guidelines.
Question: Did Katten agree to any variations from, or
alternatives to, Katten's standard billing arrangements for this
engagement?
Answer: No. Katten and the Debtor have not agreed to any
variations from, or alternatives to, Katten's standard billing
arrangements for this engagement. The rate structure provided by
Katten is appropriate and is not significantly different from (i)
the rates that Katten charges for other non-bankruptcy
representations or (ii) the rates of other comparably skilled
professionals.
Question: Do any of the Katten professionals in this engagement
vary their rate based on the geographic location of the Debtor's
Chapter 11 case?
Answer: No. The hourly rates used by Katten in representing the
disinterested directors are consistent with the rates that Katten
charges other comparable Chapter 11 clients, regardless of the
location of the Chapter 11 case.
Question: If Katten has represented the Debtor in the 12 months
prepetition, disclose Katten's billing rates and material financial
terms for the prepetition engagement, including any adjustments
during the 12 months prepetition. If Katten's billing rates and
material financial terms have changed post-petition, explain the
difference and the reasons for the difference.
Answer: Katten was retained on September 1, 2023. The billing
rates and material terms of the prepetition engagement are the same
as the rates and terms described in the application. Katten did not
provide any discounts to the Debtor pre-petition. However, due to
estimates related to the timing of the filing of the Chapter 11
case, Katten did write off a (collective) total of $12,875.36 in
fees and expenses in the few days leading up to the filing of the
Chapter 11 case (Katten would estimate fees for the day and receive
payment based upon that estimate. To the extent fees for that day
exceeded the estimate, it was adjusted off).
Question: Has the Debtor approved Katten's budget and staffing
plan, and, if so, for what budget period?
Answer: Yes. As for the budget, the Debtor is currently working
with Katten on a 13-week Cash Collateral Budget in conjunction with
the use of cash collateral that will include a budget for fees and
expenses of Katten and all other professionals retained in this
Chapter 11 case.
Mr. Mitchell disclosed in a court filing that the firm is a
"disinterested person" as that term is defined in section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
John E. Mitchell, Esq.
Michaela C. Crocker, Esq.
Yelena E. Archiyan, Esq.
Katten Muchin Rosenman LLP
2121 North Pearl Street, Suite 1100
Dallas, TX 75201
Telephone: (214) 765-3600
Facsimile: (214) 765-3602
E-mail: john.mitchell@katten.com
michaela.crocker@katten.com
yelena.archiyan@katten.com
About Hartman SPE
Hartman SPE, LLC is a lessor of nonresidential buildings based in
Houston, Texas.
Hartman SPE filed a voluntary Chapter 11 petition (Bankr. D. Del.
Lead Case No. 23-11452) on Sept. 13, 2023, with $100 million to
$500 million in both assets and liabilities. David Wheeler,
president, signed the petition.
Judge Mary F. Walrath oversees the case.
The Debtor tapped Katten Muchin Rosenman, LLP as bankruptcy
counsel; Chipman Brown Cicero & Cole, LLP as Delaware counsel; and
Epiq Corporate Restructuring, LLC as administrative advisor.
HARTMAN SPE: Taps Chipman Brown Cicero & Cole as Delaware Counsel
-----------------------------------------------------------------
Hartman SPE, LLC seeks approval from the U.S. Bankruptcy Court for
the District of Delaware to employ the law firm of Chipman Brown
Cicero & Cole, LLP.
The Debtor requires a Delaware counsel to:
(a) give advice with respect to the powers and duties of the
Debtor in the continued operation of its business and management of
its property;
(b) negotiate, draft, and pursue all documentation necessary
in this Chapter 11 case;
(c) prepare on behalf of the Debtor all legal papers;
(d) appear in court and protect the interests of the Debtor
before the court;
(e) assist with any disposition of the Debtor's assets, by
sale or otherwise;
(f) negotiate and take all necessary or appropriate actions in
connection with a plan or plans of reorganization and all related
documents thereunder and transactions contemplated therein;
(g) attend all meetings and negotiate with representatives of
creditors, the United States Trustee, and other
parties-in-interest;
(h) provide legal advice regarding bankruptcy law, corporate
law, corporate governance, transactional, litigation, and other
issues to the Debtor in connection with its ongoing business
operations; and
(i) perform all other legal services for and provide all other
necessary legal advice to the Debtor that may be necessary and
proper in this Chapter 11 case.
The hourly rates of the firm's counsel and staff are as follows:
William Chipman $775
Mark D. Olivere $525
Kristi J. Doughty $475
Michelle M. Dero $275
Partners $525 - $775
Counsel $450 - $475
Associates $300 - $375
Paralegals $200 - $275
In addition, the firm will seek reimbursement for expenses
incurred.
On Sept. 8, Chipman Brown Cicero & Cole received a retainer payment
from the Debtor totaling $50,000.00. On Sept. 11, the firm received
an additional retainer payment of $50,000.
William Chipman, Jr., Esq., a partner at Chipman Brown Cicero &
Cole, also provided the following in response to the request for
additional information set forth in Paragraph D.1 of the Revised
U.S. Trustee Guidelines.
Question: Did the firm agree to any variations from, or
alternatives to, its standard billing arrangements for this
engagement?
Answer: The firm has not agreed to a variation of its standard or
customary billing arrangement for this engagement.
Question: Do any of the firm's professionals in this engagement
vary their rate based on the geographic location of the Debtor's
Chapter 11 case?
Answer: None of the firm's professionals included in this
engagement have varied their rate based on the geographic location
of this Chapter 11 case.
Question: If the firm has represented the Debtor in the 12 months
prepetition, disclose its billing rates and material financial
terms for the prepetition engagement, including any adjustments
during the 12 months prepetition. If its billing rates and material
financial terms have changed post-petition, explain the difference
and the reasons for the difference.
Answer: The firm has only represented the Debtor in connection
with this matter. The billing rates and material terms of the
representation prior to the petition date are the same as the rates
and terms described in this application.
Question: Has the Debtor approved the firm's budget and staffing
plan, and, if so, for what budget period?
Answer: The Debtor and the firm expect to develop a prospective
budget and staffing plan for its engagement for the post-petition
period as appropriate. In accordance with the U.S. Trustee
Guidelines, the budget may be amended as necessary to reflect
changed or unanticipated developments.
Mr. Chipman disclosed in a court filing that the firm is a
"disinterested person" as that term is defined in section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
William E. Chipman, Jr., Esq.
Kristi J. Doughty, Esq.
Mark D. Olivere, Esq.
Chipman Brown Cicero & Cole, LLP
Hercules Plaza
1313 North Market Street, Suite 5400
Wilmington, DE 19801
Telephone: (302) 295-0191
Facsimile: (302) 295-0199
E-mail: chipman@chipmanbrown.com
doughty@chipmanbrown.com
olivere@chipmanbrown.com
About Hartman SPE
Hartman SPE, LLC is a lessor of nonresidential buildings based in
Houston, Texas.
Hartman SPE filed a voluntary Chapter 11 petition (Bankr. D. Del.
Lead Case No. 23-11452) on Sept. 13, 2023, with $100 million to
$500 million in both assets and liabilities. David Wheeler,
president, signed the petition.
Judge Mary F. Walrath oversees the case.
The Debtor tapped Katten Muchin Rosenman, LLP as bankruptcy
counsel; Chipman Brown Cicero & Cole, LLP as Delaware counsel; and
Epiq Corporate Restructuring, LLC as administrative advisor.
HAYS MECHANICAL: Starts Chapter 11 Bankruptcy Protection
--------------------------------------------------------
On September 14, 2023 Hays Mechanical LLC. filed for chapter 11
protection in the District of New Jersey. According to court
filing, the Debtor reports between $1 million and $10 million in
debt owed to 1 and 49 creditors. The Petition states funds will be
available to Unsecured Creditors.
About Hays Mechanical LLC
Hays Mechanical LLC, doing business as Camden Mechanical, is
primarily engaged in manufacturing construction machinery, surface
mining machinery, and logging equipment.
Hays Mechanical LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. N.J. Case No. 23-18041) on September 14,
2023. In the petition filed by Michael L. Hays, as managing
member/principal, the Debtor reports estimated assets between
$500,000 and $1 million and estimated liabilities between $1
million and $10 million.
The Debtor is represented by:
David L. Stevens, Esq.
Scura, Wigfield, Heyer & Stevens
1995 Ferry Avenue
Camden, NJ 08104
Tel: 201-490-4777
Email: dstevens@scura.com
INFINITY PHARMA: Oct. 6 Deadline Set for Panel Questionnaires
-------------------------------------------------------------
The United States Trustee is soliciting members for committee of
unsecured creditors in the bankruptcy case of Infinity
Pharmaceuticals, Inc., et al.
If a party wishes to be considered for membership on any official
committee that is appointed, it must complete a questionnaire
available at https://tinyurl.com/4d73zvk9 and return by email it to
Jane M. Leamy - Jane.M.Leamy@usdoj.gov - at the Office of the
United States Trustee so that it is received no later than 4:00
p.m., on Oct. 6, 2023.
If the U.S. Trustee receives sufficient creditor interest in the
solicitation, it may schedule a meeting or telephone conference for
the purpose of forming a committee.
About Infinity Pharmaceuticals
Infinity is a research and clinical-development stage
biopharmaceutical company with a focus on developing novel drugs
for the treatment of cancer.
On Sept. 29, 2023, Infinity Pharmaceuticals Inc. and Infinity
Discovery Inc. filed voluntary petitions for relief under Chapter
11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 23-11640).
The Debtors listed $21,232,000 in estimated assets and $58,638,000
estimated liabilities. The petitions were signed by Seth A. Tasker
as chief executive officer.
The Debtors tapped Landis Rath & Cobb LLP as bankruptcy counsels.
Sonoran Capital Advisors LLC is the Debtors' financial advisor.
Wilmer Cutler Pickering Hale and Dorr LLP is the Debtors' special
corporate counsel. SSG Advisors LLC is the Debtors' investment
banker. Stretto Inc. is the Debtors' notice and claims agent.
INSTANT BRANDS: Gets Bids from Citadel, Centre Lane
---------------------------------------------------
Reshmi Basu of Bloomberg News report that Instant Brands, the
Illinois-based bankrupt maker of the Instant Pot pressure cooker
and Pyrex glassware, has drawn interest for different parts of its
business from parties including Centre Lane Partners and hedge fund
Citadel, according to people familiar with the matter.
Citadel has offered to purchase loan holdings from existing lenders
at around 7 cents on the dollar, said the people who asked not to
be named because the details of the matter are private.
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 Holdings Inc. and Instant Brands Inc., and their
affiliates sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 23-90716) on June
12, 2023. In the petition signed by Adam Hollerbach, chief
restructuring officer, the Debtors disclosed up to $1 billion in
both assets and liabilities. Judge David R. Jones oversees the
case.
Davis Polk & Wardwell LLP's Brian M. Resnick, Steven Z. Szanzer and
Joanna McDonald serve as counsel to the Debtors. The Debtors also
tapped Haynes and Boone, LLP as Texas counsel, Stikeman Elliott LLP
as Canadian counsel, AlixPartners, LLP as financial advisor,
Guggenheim Securities LLC as investment banker, and Epiq Corporate
Restructuring, LLC as claims, noticing, agent, solicitation and
administrative advisor.
DLA Piper LLP (US) serves as counsel to the Official Committee of
Unsecured Creditors.
Ropes & Gray LLP serves as counsel to the DIP Lenders, and Moelis &
Company LLC and Ankura Consulting Group, LLC act as advisors to the
Term DIP Secured Parties.
Skadden, Arps, Slate, Meagher & Flom LLP and Norton Rose Fulbright
and Norton Rose Fulbright Canada LLP serve as counsel and FTI
Consulting as financial advisor to the ABL DIP Secured Parties.
Kramer Levin Naftalis & Frankel LLP serves as counsel to Cornell
Capital.
IQPACK LLC: Dennis Perrey Named Subchapter V Trustee
----------------------------------------------------
The U.S. Trustee for Region 10 appointed Dennis Perrey as
Subchapter V trustee for IQPack LLC.
Mr. Perrey will be paid an hourly fee of $375 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Perrey declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Dennis J. Perrey
P.O. Box 8232
Evansville, IN 47716
Phone: 812.630.5823
Email: dennis.perrey@yahoo.com
About IQPack LLC
IQPack, LLC is a packaging and supply-chain solutions company based
in Jeffersonville, Ind.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. S.D. Ind. Case No. 23-90911) on Sept. 19,
2023, with $1.12 in assets and $2.4 million in liabilities. Kenny
A. Rohleder, member and president, signed the petition.
Judge Andrea K. McCord oversees the case.
April A. Wimberg, Esq., at Dentons Bingham Greenebaum, represents
the Debtor as legal counsel.
JACON LLC: Files Chapter 11 Subchapter V Case
---------------------------------------------
Jacon LLC filed for Subchapter V bankruptcy protection in the
District of Minnesota. According to court filing, the Debtor
reports between $1 million and $10 million in debt owed to 100 and
199 creditors. The petition states funds will be available to
unsecured creditors.
A video/teleconference meeting of creditors under 11 U.S.C. Section
341(a) is slated for October 12, 2023, at 1:30 PM.
About Jacon LLC
Jacon LLC -- https://WWW.JACONCO.COM -- is a leading Demolition,
Excavating, and Utilities Contractor in the St. Paul/Minneapolis
area.
Jacon LLC sought relief under Subchapter V of Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Minn. Case No. 23-31873) on
September 12, 2023. In the petition filed by Jason Jacobsen, as
president, the Debtor estimated assets and debt of $1 million to
$10 million. The petition states funds will be available to
Unsecured Creditors.
The Honorable Bankruptcy Judge William J Fisher oversees the case.
The Debtor is represented by:
John D. Lamey, III, Esq.
Lamey Law Firm, P.A.
3900 LABORE RD
ST PAUL, MN 55110
JAMES R SMITH: Francis Brennan Named Subchapter V Trustee
---------------------------------------------------------
The U.S. Trustee for Region 2 appointed Francis Brennan, Esq., at
Nolan Heller Kauffman, LLP, as Subchapter V trustee for James R
Smith 52 Inc.
Mr. Brennan will be paid an hourly fee of $425 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Brennan declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Francis Brennan, Esq.
Nolan Heller Kauffman, LLP
80 State Street – 11th Floor
Albany NY 12207
Phone: 518-432-3159
Email: fbrennan@nhkllp.com
About James R Smith
James R Smith 52 Inc. filed a petition under Chapter 11, Subchapter
V of the Bankruptcy Code (Bankr. N.D.N.Y. Case No. 23-30673) on
Sept. 20, 2023, with $100,001 to $500,000 in assets and $500,001 to
$1 million in liabilities.
Judge Wendy A. Kinsella oversees the case.
Peter Alan Orville, Esq., at Orville & Mcdonald Law, PC represents
the Debtor as bankruptcy counsel.
JG FOOD: Court Grants 21-Day Extension to File Plan
---------------------------------------------------
Judge Mildred Caban Flores, on Sept. 20, 2023, entered an order,
that the motion filed by JG Food and Entertainment LLC a/k/a La
Cantina Karaoke Bar & Restaurant requesting extension of time of 21
days to file the Disclosure Statement and Plan is granted.
About JG Food and Entertainment
JG Food And Entertainment LLC, filed a Chapter 11 bankruptcy
petition (Bankr. D.P.R. Case No. 23-00603) on March 1, 2023, with
as much as $1 million in both assets and liabilities.
The Debtor is represented by Licenciado Carlos Alberto Ruiz, LLC.
JSMITH CIVIL: Dickinson Avenue Contractor in Chapter 11
-------------------------------------------------------
Ginger Livingston of Reflector reports that the Goldsboro
contractor who started, then stopped, the Dickinson Avenue
Improvement Project has filed for bankruptcy, and there's no
timeline when work on the project will begin again.
JSmith Civil LLC filed on September 19, 2023 at the United States
Bankruptcy Court for the Eastern District of North Carolina, court
documents show.
The documents show the company has between $10 million to $50
million in assets and between $10 million to $50 million in
liabilities.
The company estimates it has between 200 to 999 creditors.
Among the creditors are the Greenville Utilities Commission, City
of Greenville, Town of Farmville, 24 other municipalities across
the state and businesses located in Greenville, Farmville,
Winterville.
"We don't owe them any money, and they they don't owe us any
money," said Farmville Town Manager David Hodgkins. "I'm not sure
why we are listed as creditor because they've only done one project
for the Town of Farmville."
That was a 2020 project paving the parking lot of The Depot, which
temporarily housed the town’s library. Hodgkins said the town had
no issues because they completed the work for the bid price.
Information was not immediately available on what JSmith Civil owes
GUC or the City of Greenville.
The N.C. Department of Transportation awarded JSmith Civil LCC a
$15.7 million contract in early 2022 to upgrade a 1.3-mile section
of Dickinson between South Memorial Drive and Reade Circle. The
project, which was going to be completed in phases, involved the
installation of new drainage pipes and relocation of municipal
utilities to improve drainage on the road.
The first phase, which closed a portion of the road between Skinner
and 14th streets, started September 2022 with a plan to complete
the first phase of the work in March.
However, the work stalled in March. A transportation department
spokeswoman said at the time JSmith paused the work to resolve
"internal performance issues related to their ability to perform
work."
The spokeswoman said NCDOT worked with JSmith and its bonding
company to complete the first phase of the project in April. No
work has since taken place.
NCDOT finalized JSmith Civil's default in June. The bond company
will be responsible for completing the Dickinson Avenue project and
selecting the contractor who will do the work, NCDOT spokesman
Andrew C. Barksdale said.
"This is a complicated project because work will be done in
sections while also maintaining access to businesses and their
driveways along the road. It's also a tight labor market. So, the
bonding company is still working to find a suitable replacement
contractor that is able to do this kind of project," Barksdale
said.
"We are optimistic the bonding company will find a replacement
contractor. However, we don't have a new construction timelines
yet. We are eager, however, to have this project resume
construction."
About JSmith Civil LLC
JSmith Civil LLC is a Goldsboro contractor.
JSmith Civil LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Banjr. E.D.N.C. Case No. 23-02734) on September
19, 2023. In the petition filed by Jeremy Smith, as president,
the
Debtor reports estimated assets and liabilities between $10 million
and $50 million each.
The Debtor is represented by:
Joseph Zachary Frost, Esq.
Buckmiller, Boyette & Frost, PLLC
PO Box 857
Goldsboro, NC 27530
KIDDE-FENWAL: Defends Chapter 11 Plan Extension Deadline Bid
------------------------------------------------------------
Alex Wittenberg of Law360 reports that firefighting foam maker
Kidde-Fenwal defended its request to extend the window during which
it has the sole right to file a Chapter 11 plan, telling a Delaware
bankruptcy court it has made significant strides in restructuring
talks and that an objection from the creditors committee offers no
basis for denying the extension.
About Kidde-Fenwal
Kidde-Fenwal Inc. -- https://www.kidde-fenwal.com/ -- manufactures
fire protection systems. It offers products such as fire control
systems, explosion aircraft protection, laser-based smoke detection
devices, electronic gas ignitions, and fire suppressions.
Kidde-Fenwal markets its products to mining, manufacturing,
education, and commercial sectors.
Kidde-Fenwal sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. Del. Case No. 23-10638) on May 14, 2023. In the
petition filed by its chief transformation officer, James
Mesterharm, the Debtor reported assets between $100 million and
$500 million and estimated liabilities between $1 billion and $10
billion.
The Debtor tapped Sullivan & Cromwell, LLP and Morris Nichols Arsht
& Tunnell, LLP as bankruptcy counsels; Covington & Burling, LLP as
special insurance counsel; and Guggenheim Securities, LLC as
investment banker. Stretto, Inc. is the claims and noticing agent
and administrative advisor.
The official committee of unsecured creditors appointed in the
Debtor's Chapter 11 case tapped Brown Rudnick, LLP and Stutzman,
Bromberg, Esserman & Plifka, A Professional Corporation as
bankruptcy counsels; Gilbert, LLP and KTBS Law, LLP as special
counsels; Province, LLC as financial advisor; and Houlihan Lokey
Capital, Inc. as investment banker.
KIRBY CONSTRUCTION: Hires Paul Reece Marr as Legal Counsel
----------------------------------------------------------
Kirby Construction Group, LLC seeks approval from the U.S.
Bankruptcy Court for the Northern District of Georgia to employ
Paul Reece Marr, P.C. as legal counsel.
The firm's services include:
a. providing the Debtor with legal advice regarding its powers
and duties as a debtor in possession in the continued operation and
management of its affairs;
b. preparing on behalf of the Debtor the necessary
applications, statements, schedules, lists, answers, orders and
other legal papers pursuant to the Bankruptcy Code; and
c. performing all other legal services in the Chapter 11
bankruptcy proceeding for the Debtor which may be reasonably
necessary.
The firm will be paid at these rates:
Paul Reece Marr, Esq. $450 per hour
Paralegal $250 per hour
The firm will be paid a retainer in the amount of $16,738.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Paul Reece Marr, Esq., a partner at Paul Reece Marr, P.C.,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Paul Reece Marr, Esq.
PAUL REECE MARR, P.C.
1640 Powers Ferry Road
6075 Barfield Road Suite 213
Sandy Springs, GA 30328
Telephone: (770) 984-2255
Email: paul.marr@marrlegal.com
About Kirby Construction Group, LLC
Kirby Construction Group, LLC provides restoration, renovation, and
remodel of interior building finishes, predominantly focused on
nonstructural residential interiors. Building finishes include
dry wall, painting, flooring, set-up, cabinets, countertops, etc.
The Debtor subcontracts the work out to third party subcontractors
on a job-by-job basis. Andrew C. Kirby, Jr. is the Debtor's sole
W-2 employee. The Debtor leases its office and warehouse location
having an address of 5365 Dividend Drive, Suite F, Decatur, Georgia
30035.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ga. Case No. 23-58909) on September
13, 2023. In the petition signed by Andrew C. Kirby, Jr. manager,
the Debtor disclosed up to $100,000 in assets and up to $1 million
in liabilities.
Paul Reece Marr GA, Esq., at Paul Reece Marr, PC, represents the
Debtor as legal counsel.
KPG REVENUE: Seeks to Hire Gamett & King as Accountant
------------------------------------------------------
KPG Revenue Cycle Management, Inc. seeks approval from the U.S.
Bankruptcy Court for the District of Nevada to employ Gamett & King
CPA as accountant.
The firm will provide these services:
a. provide ordinary course bookkeeping services to the Debtor at
the expense of the estate; and
b. provide regular tax return preparation services.
The firm will be paid at these rates:
Mackenzie Slater, CPA $225 per hour
Jason Gammett, CPA Firm Partner $400 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Clifford Zucker, a partner at Gamett & King CPA, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Clifford Zucker
Gamett & King CPA
1166 Avenue of the Americas 15th Floor
New York, NY 10036
Tel: (212) 841-9355
Email: cliff.zucker@fticonsulting.com
About KPG Revenue and RCM-TO GO
KPG Revenue Cycle Management, Inc. assists major medical facilities
in the collection of healthcare data, which is pivotal for
government reporting and patient invoicing.
KPG and its affiliate RCM-TO GO, LLC filed petitions under Chapter
11, Subchapter V of the Bankruptcy Code (Bankr. D. Nev. Lead Case
No. 23-12013) on May 19, 2023.
At the time of the filing, KPG reported as much as $50,000 in
assets and $100,001 to $500,000 in liabilities while RCM-TO GO
reported as much as $50,000 in assets and $500,001 to $1 million in
liabilities.
Judge Mike K. Nakagawa oversees the cases.
The Debtors are represented by Seth D. Ballstaedt, Esq., at Fair
Fee Legal Services.
LA BELLE FRANCE: Unsec. Creditors to Get Dividend in Plan
---------------------------------------------------------
La Belle France, LLC submitted a First Amended Plan of
Reorganization.
Since 2010, La Belle France, LLC, d/b/a French Girl, has
manufactured and sold organic skin care and body care products to
wholesale customers, including independent stores, boutiques, and
large retailers. The Debtor also sells its products direct to
retail customers online, via its website.
The Court held a hearing on May 3, 2023 on Debtor's request for
temporary authorization to use cash collateral. Without objection,
the Court granted the Debtor's motion by order dated May 5, 2023
and authorized the Debtor to temporarily use cash collateral for
certain articulated expenses and set a final hearing on cash
collateral for June 8, 2023. Without objection, the Court granted
the Debtor's motion by order dated June 5, 2023 and authorized the
Debtor's final use of cash collateral.
As of the date of the Petition Date, the Debtor operated out of a
leased premises located at 3315 S. 116th Street, #131, Tukwila, WA
98168. Prior to the Petition Date, the Debtor entered into a new
lease agreement for lease space located at 613 Industry Drive,
Tukwila, WA. On or about June 1, 2023, the Debtor vacated the old
space and relocated to the new space. By Order of the Court dated
July 26, 2023, the Court approved of the Debtor's stipulated
rejection of the prior lease on the property located at 3315 S.
116th Street, #131, Tukwila, WA 98168.
Under the Plan, holders of Class 2 Allowed General Unsecured Claims
will be paid a pro rata share of $34,200 to be paid in shared
monthly installments of $600.00 beginning the 5th day of October
2023 until paid. Class 2 is impaired.
With the reduction in operating expenses and the cost savings of
relocating to a smaller facility, the Debtor believes the operation
can return to profitability. It is anticipated that with the
strategic changes to the Debtor's business model as above
referenced, the Debtor's fixed expenses will now remain relatively
constant moving forward.
To increase revenue, the Debtor has recently started marketing its
products through the FAIRE wholesale marketplace and has
experienced a steady growth in sales since that time. Direct sales
through the Debtor's website continues to remain relatively
constant. It is anticipated that with the strategic changes to the
Debtor's business model as above referenced, the Debtor's fixed
expenses will remain relatively constant moving forward as sales
increase. Internationally, the Debtor believes there is growth
potential in the European market which will be realized once a
distributor is in place. The Debtor is currently in negotiations
with a Brazilian company to distribute its products.
The Debtor anticipates generating sufficient net income to fund
this Plan of Reorganization which will pay all allowed
administrative and secured claims and return a dividend to general
unsecured creditors.
Counsel for the Debtor:
Thomas D. Neeleman, Esq.
NEELEMAN LAW GROUP, P.C.
1403 8th Street
Marysville, WA 98270
Telephone: (425) 212-4800
Facsimile: (425) 212-4802
A copy of the First Amended Plan of Reorganization dated September
20, 2023, is available at https://tinyurl.ph/CWLks from
PacerMonitor.com.
About La Belle France
La Belle France, LLC manufactures organic skin care and body care
products for wholesale customers, including independent stores,
boutiques and large retailers. The company also sells its products
directly to retail customers online via its website.
La Belle France sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Wash. Case No. 23-10781) on April 28,
2023, with up to $500,000 in assets and up to $1 million in
liabilities. Philip Grimes, managing member, signed the petition.
Judge Marc Barreca oversees the case.
Thomas D. Neeleman, Esq., at Neeleman Law Group, P.C., represents
the Debtor as legal counsel.
LINDEN CENTER: Payout to Creditors to Depend on Sale
----------------------------------------------------
Linden Center LLC submitted a Chapter 11 Plan and a Disclosure
Statement.
The Plan described in this Disclosure Statement provides the
Allowed Claims of creditors to be satisfied from the sale of the
Debtor's Property. The Plan, and the distribution provided
thereunder, will be funded from the sale proceeds of the Premises
and pursuit of causes of action against third parties, including
but not limited to the Lams, current and former tenants of the
Debtor and other parties that may have the recipients of
preferential or fraudulent transfers. Because the bid deadline has
not passed with regard to the sale of the Premises, the Debtor does
not yet have the range of bidding for the Premises. Thus at this
juncture, it is hard to say what the Premises will ultimately sell
for. A successful sale of the Premises, coupled with recoveries on
account of the Debtor's claims against third parties, may result in
payment in full to the Debtor's creditors, rending the Plan
unimpaired. Should available funds be insufficient to pay Allowed
Claims in full, the Debtor will pursue a cramdown Plan.
The Debtor is the owner of a certain real property located at 33-37
Farrington Street (a/k/a 34-20 Linden Place), Flushing, New York,
11354 (Block 4950 and Lot 18) (the "Premises"). The Premises was
acquired in 2017 for approximately $21 million from a bankruptcy
estate.
On June 9, 2023, the Debtor filed a motion to retain North Point
Real Estate to serve as the Debtor's real estate broker and the
Order approving such retention was entered on July 27, 2023.
On July 5, 2023, the Debtor filed a motion seeking to set bidding
and sale procedures with respect to the sale of the Premises.
Following a hearing on August 10, 2023, the Bankruptcy Court
entered an Order dated May 17, 2021, approving bidding procedures
for the sale of the Premises.
In accordance with the bidding procedures, the following salient
deadlines have been set:
* The deadline to submit a bid for the Premises will be on October
20, 2023.
* The auction of the Premises will be on October 24, 2023.
* The scheduled date and time for the hearing on approval of the
sale of the Premises to the Purchaser or the successful bidder will
be on October 27, 2023 at 10:30 a.m.
* The General Claims Bar Date will be on November 1, 2023.
* The Governmental Bar Date will be on November 1, 2023.
Under the Plan, Class 6 consists of General Unsecured Claims. Class
6 Claims may be impaired depending on the sale proceeds from the
Premises and recoveries, if any, on account of affirmative claims.
As such, holders of General Unsecured Claims are entitled to vote
to accept or reject the Plan.
Holders of General Unsecured Claims will receive their pro rata
share of any proceeds available after fully payment of Classes 1,
2, 3, and 5. Such Holders will receive a pari passu distribution
with Class 4. Class 6 is impaired.
The Plan Fund will be substantially funded by the net sale proceeds
of the Sale Transaction. The Confirmation Order shall authorize the
Sale of the Property under sections 363, 365, 1123(b)(4),
1129(b)(2)(A)(iii) and 1146(a) of the Bankruptcy Code and approve
the terms of the Sale Transaction. Upon the occurrence of the
Effective Date, the Confirmation Order shall authorize the Debtor
and the Reorganized Debtor, as applicable, to sell the Property to
the Purchaser, free and clear of all liens, claims and
encumbrances, and to take any and all actions necessary to
consummate the Sale Transaction, consistent with the terms of the
purchase agreement with the Purchaser, without further order of the
Bankruptcy Court. As a part of the Sale Transaction under the Plan,
and in order to ensure consummation of the Plan, the Confirmation
Order shall contain the following findings of fact and conclusions
of law: (i) that the terms and conditions of the Sale Transaction
and the purchase agreement are fair and reasonable, (ii) that the
Debtor's sale, and the Purchaser's purchase, of the Property
pursuant to the Plan, is non-collusive, fair and reasonable and was
conducted openly and in good faith, without any fraud, (iii) that
the transfer of the Property to the Purchaser represents an
arm's-length transaction and was negotiated in good faith between
the parties, (iv) that the Purchaser, as transferee of the
Property, is a good faith purchaser under Bankruptcy Code section
363(m) and, as such, is entitled to the full protection of
Bankruptcy Code section 363(m), (v) that the Property is sold free
and clear of all claims, interests, and encumbrances pursuant to
Bankruptcy Code section 1141(c), (vi) that the Sale Transaction was
not controlled by an agreement among potential purchasers, and
(vii) that no cause of action exists against the Purchaser or with
respect to the sale of the Property to the Purchaser.
Counsel to the Debtor and Debtor-in-Possession:
Eric H. Horn, Esq.
Heike M. Vogel, Esq.
Eva M. Thomas, Esq.
A.Y. STRAUSS LLC
535 Fifth Avenue, 4th Floor
New York, NY 10017
Tel: (973) 287-5006
Fax: (973) 226-4104
A copy of the Disclosure Statement dated September 20, 2023, is
available at https://tinyurl.ph/kYOzh from PacerMonitor.com.
About Linden Center
Linden Center, LLC is the owner of a certain real property located
at 33-37 Farrington St. (also known as 34-20 Linden Place), in
Flushing, N.Y. The property was acquired in 2017 for approximately
$21 million from a bankruptcy estate. The property is a multi-story
commercial retail building that may currently be occupied by
multiple commercial tenants, including dining establishments, a day
care, and a doctor's office.
Linden Center filed a petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. E.D.N.Y. Case No. 23-41820) on May 24,
2023, with $1 million to $10 million in both assets and
liabilities. Mark Allen, manager, signed the petition.
Judge Elizabeth S. Stong oversees the case.
The Debtor is represented by Eric H. Horn, Esq., at A.Y. Strauss,
LLC.
LJF INC: Hits Chapter 11 Bankruptcy Protection
----------------------------------------------
LJF Inc. filed for chapter 11 protection in the Western District of
Pennsylvania. According to court filing, the Debtor reports
between $1 million and $10 million in debt owed to 1 and 49
creditors. The petition states funds will be available to
Unsecured Creditors.
About LJF Inc.
LJF, Inc. provides trucking and logistics to the coal industry.
LJF Inc. sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. W.D. Pa. Case No. 23-70316) on Sept. 14, 2023. In the
petition signed by Leo C. Frailey, president, the Debtor disclosed
up to $10 million in both assets and liabilities.
Judge Jeffery A. Deller oversees the case.
The Debtor is represented by:
David Z. Valencik, Esq.
Calaiaro Valencik
1223 Parks Road
Irvona, PA 16656
LUCAS MACYSZYN: Seeks to Hire Johnson Pope as Legal Counsel
-----------------------------------------------------------
Lucas, Macyszyn & Dyer Law Firm, PLLC seeks approval from the U.S.
Bankruptcy Court for the Middle District of Florida to employ
Johnson Pope Bokor Ruppel & Burns, LLP as legal counsel.
The firm will provide these services:
a. give the Debtor legal advice with respect to their duties
and obligations as Debtor in Possession or "DIP";
b. take necessary steps to analyze and pursue any avoidance
actions, if in the best interest of the estate;
c. prepare on behalf of the Debtor the necessary motions,
notices, pleadings, petitions, answers, orders, reports and other
legal papers required in this Chapter 11 case;
d. assist the Debtor in taking all legally appropriate steps
to effectuate compliance with the Bankruptcy Code; and
e. perform all other legal services for the Debtor which may
be necessary herein including closings of sales of the Debtor's
real property assets.
The firm will be paid at the rate of $450 per hour. The firm
received a retainer in the amount of $35,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Alberto "Al" F. Gomez, Jr., Esq., a partner at Johnson Pope Bokor
Ruppel & Burns, LLP, disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached at:
Alberto "Al" F. Gomez, Jr., Esq.
JOHNSON POPE BOKOR RUPPEL & BURNS, LLP
401 E. Jackson Street Ste. 3100
Tampa, FL 33602
Tel: (813) 225-2500
Fax: (813) 223-7118
Email: Ala@jpfirm.com
About Lucas, Macyszyn & Dyer Law Firm, PLLC
Lucas, Macyszyn & Dyer Law Firm, PLLC handles car accidents, truck
accidents, motorcycle accidents and slip and fall injury cases. The
law firm is based in New Port Richey, Fla.
Lucas, Macyszyn & Dyer Law Firm filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. M.D. Fla. Case No.
23-03944) on Sept. 8, 2023, with $1 million to $10 million in both
assets and liabilities.
Judge Catherine Peek McEwen oversees the case.
Alberto F. Gomez, Jr., Esq., at Johnson, Pope, Bokor, Ruppel &
Burns, LLP, represents the Debtor as legal counsel.
LUXURY AUTO: Aaron Cohen Named Subchapter V Trustee
---------------------------------------------------
The U.S. Trustee for Region 21 appointed Aaron Cohen, Esq., a
practicing attorney in Jacksonville, Fla., as Subchapter V trustee
for Luxury Auto Carriers, Inc.
Mr. Cohen will be paid an hourly fee of $300 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Cohen declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Aaron R. Cohen, Esq.
P.O. Box 4218
Jacksonville, FL 32201
Tel: (904) 389-7277
Email: aaron@arcohenlaw.com
About Luxury Auto Carriers
Luxury Auto Carriers, Inc. filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. M.D. Fla. Case No.
23-03803) on Sept. 14, 2023, with up to $1 million in both assets
and liabilities. Roberto J. Soto Serrano, shareholder, signed the
petition.
Judge Tiffany P. Geyer oversees the case.
Daniel A, Velasquez, Esq., at Latham Luna Eden & Beaudine, LLP,
represents the Debtor as legal counsel.
MERCY HOSPITAL: Committee Hires FTI Consulting as Financial Advisor
-------------------------------------------------------------------
The official committee of unsecured creditors of Mercy Hospital,
Iowa City, Iowa and its affiliates seeks approval from the U.S.
Bankruptcy Court for the Northern District of Iowa to employ FTI
Consulting, Inc. as financial advisor.
The firm will provide these services:
a. assistance in the review of financial related disclosures
required by the Court, including the Schedules of Assets and
Liabilities, the Statement of Financial Affairs and Monthly
Operating Reports;
b. assistance in the preparation of analyses required to
assess any proposed Debtor-In-Possession ("DIP") financing or use
of cash collateral;
c. assistance with the assessment and monitoring of the
Debtors' short term cash flow, liquidity, and operating results;
d. assistance with the review of the Debtors' proposed
employee compensation and benefits programs;
e. assistance with the review of the Debtors' potential
disposition or liquidation of both core and non-core assets;
f. assistance with the review of the Debtors' cost/benefit
analysis with respect to the affirmation or rejection of various
executory contracts and leases;
g. assistance with the review of the Debtors' identification
of potential cost savings, including overhead and operating expense
reductions and efficiency improvements;
h. assistance in the review and monitoring of the asset sale
process, including, but not limited to an assessment of the
adequacy of the marketing process, completeness of any buyer lists,
review and quantifications of any bids;
i. assistance with review of any tax issues associated with,
but not limited to, claims/stock trading, preservation of net
operating losses, refunds due to the Debtors, plans of
reorganization, and asset sales;
k. assistance in the review of the claims reconciliation and
estimation process;
l. assistance in the review of other financial information
prepared by the Debtors, including, but not limited to, cash flow
projections and budgets, business plans, cash receipts and
disbursement analysis, asset and liability analysis, and the
economic analysis of proposed transactions for which Court approval
is sought;
m. attendance at meetings and assistance in discussions with
the Debtors, potential investors, banks, other secured lenders, the
Committee and any other official committees organized in these
chapter 11 proceedings, the U.S. Trustee, other parties in interest
and professionals hired by the same, as requested;
n. assistance in the review and/or preparation of information
and analysis necessary for the confirmation of a plan and related
disclosure statement in these chapter 11 proceedings;
o. assistance in the evaluation and analysis of avoidance
actions, including fraudulent conveyances and preferential
transfers;
p. assistance in the prosecution of Committee
responses/objections to the Debtors' motions, including attendance
at depositions and provision of expert reports/testimony on case
issues as required by the Committee; and
q. provision of such other general business consulting or such
other assistance as the Committee or its counsel may deem necessary
that are consistent with the role of a financial advisor and not
duplicative of services provided by other professionals in this
proceeding.
The firm will be paid at these rates:
Senior Managing Directors $1,045 to 1,495 per hour
Directors/Senior Directors/
Managing Directors $785 to 1,055 per hour
Consultants/Senior Consultants $435 to 750 per hour
Administrative/Paraprofessionals $175 to 325 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Cliff Zucker, senior managing director at FTI, disclosed in a court
filing that his firm is a "disinterested person" pursuant to
Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Cliff Zucker
FTI Consulting, Inc.
1166 Avenue of the Americas 15th Floor
New York, NY 10036
Tel: (212) 841-9355
Email: cliff.zucker@fticonsulting.com
About Mercy Hospital, Iowa City, Iowa
Mercy Hospital, Iowa City, Iowa is a Catholic-based Iowa nonprofit
corporation and a tax-exempt organization described in Section
501(c)(3) of the Internal Revenue Code of 1986 (as amended) that
operates an acute care community hospital and clinics located in
Iowa City, Iowa and surrounding communities.
Mercy Hospital and affiliates, Mercy Iowa City ACO, LLC and Mercy
Services Iowa City, Inc. sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Iowa Lead Case No. 23-00623) on
Aug. 7, 2023. In its petition signed by Mark E. Toney, chief
restructuring officer, Mercy Hospital disclosed up to $500 million
in both assets and liabilities.
Judge Thad J. Collins oversees the cases.
The Debtors tapped Nyemaster Goode, P.C and McDermott Will & Emery
LLP as bankruptcy co-counsel; Toneykorf Partners, LLC to provide
interim management services; H2C Securities Inc. as investment
banker; and Epiq Corporate Restructuring, LLC as notice and claims
agent.
Mary Jensen, Acting U.S. Trustee for Region 12, appointed an
official committee to represent unsecured creditors in the Debtors'
Chapter 11 cases. Sills Cummis & Gross P.C., and Cutler Law Firm,
P.C. as counsels. FTI Consulting, Inc. as financial advisor.
MERCY HOSPITAL: Committee Seeks to Hire Cutler Law as Co-Counsel
----------------------------------------------------------------
The official committee of unsecured creditors of Mercy Hospital,
Iowa City, Iowa, and its affiliates seeks approval from the U.S.
Bankruptcy Court for the Northern District of Iowa to employ Cutler
Law Firm, P.C. as co-counsel.
The firm will be paid at these rates:
Robert C. Gainer, Esq. $350 per hour
Associates $200 per hour
Paralegals $100 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Robert C. Gainer, Esq., a partner at Cutler Law Firm, P.C.,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Robert C. Gainer, Esq.
Cutler Law Firm, P.C.
West Des Moines, IA 50266
Tel: (515) 223-6600
Fax: (515) 223-6787
Email: rgainer@cutlerfirm.com
About Mercy Hospital, Iowa City, Iowa
Mercy Hospital, Iowa City, Iowa is a Catholic-based Iowa nonprofit
corporation and a tax-exempt organization described in Section
501(c)(3) of the Internal Revenue Code of 1986 (as amended) that
operates an acute care community hospital and clinics located in
Iowa City, Iowa and surrounding communities.
Mercy Hospital and affiliates, Mercy Iowa City ACO, LLC and Mercy
Services Iowa City, Inc. sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Iowa Lead Case No. 23-00623) on
Aug. 7, 2023. In its petition signed by Mark E. Toney, chief
restructuring officer, Mercy Hospital disclosed up to $500 million
in both assets and liabilities.
Judge Thad J. Collins oversees the cases.
The Debtors tapped Nyemaster Goode, P.C and McDermott Will & Emery
LLP as bankruptcy co-counsel; Toneykorf Partners, LLC to provide
interim management services; H2C Securities Inc. as investment
banker; and Epiq Corporate Restructuring, LLC as notice and claims
agent.
Mary Jensen, Acting U.S. Trustee for Region 12, appointed an
official committee to represent unsecured creditors in the Debtors'
Chapter 11 cases. Sills Cummis & Gross P.C., and Cutler Law Firm,
P.C. as counsels. FTI Consulting, Inc. as financial advisor.
MERCY HOSPITAL: Committee Seeks to Hire Sills Cummis as Counsel
---------------------------------------------------------------
The official committee of unsecured creditors of Mercy Hospital,
Iowa City, Iowa and its affiliates seeks approval from the U.S.
Bankruptcy Court for the Northern District of Iowa to employ Sills
Cummis & Gross P.C. as counsel.
The firm will provide these services:
a. provide legal advice regarding the Committee's rights,
powers, and duties in these cases;
b. prepare all necessary applications, answers, responses,
objections, orders, reports, and other legal papers;
c. represent the Committee in any and all matters arising in
these cases, including any dispute or issue with the Debtors or
other third parties;
d. appear at hearings and other proceedings to represent the
interests of the Committee;
e. assist the Committee in its investigation and analysis of
the Debtors, their capital structure, and issues arising in or
related to these cases, including but not limited to the review and
analysis of all pleadings, claims, and bankruptcy plans that might
be filed in these cases, and any negotiations or litigation that
may arise out of or in connection with such matters, the Debtors'
operations, the Debtors' financial affairs, and any proposed
disposition of the Debtors' assets;
f. represent the Committee in all aspects of any sale and
bankruptcy plan confirmation proceedings; and
g. perform any and all other legal services for the Committee
that may be necessary or desirable in these cases.
The firm will be paid at these rates:
Members $625 to $995 per hour
Counsels $525 to $795 per hour
Associates $350 to $595 per hour
Paralegals $275 to $305 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
In accordance with Appendix B-Guidelines for Reviewing Applications
for Compensation and Reimbursement of Expenses Filed under 11
U.S.C. Sec. 330 for Attorneys in Larger Chapter 11 Cases, the
following is provided in response to the request for additional
information:
Question: Did you agree to any variations from, or
alternatives to, your standard or customary billing
arrangements for this engagement?
Response: Yes. The firm agreed that, for each month in the
bankruptcy cases, the firm's fees, not including
expenses, will be limited to the lesser of (i) the
amount of its fees at its professionals' standard
rates and (ii) the amount of its fees at a blended
hourly rate of $675.
Question: Do any of the professionals included in this
engagement vary their rate based on the geographic
location of the bankruptcy case?
Response: No.
Question: If you represented the client in the 12 months
prepetition, disclose your billing rates and
material financial terms for the prepetition
engagement, including any adjustments during the 12
months prepetition. If your billing rates and
material financial terms have changed postpetition,
explain the difference and the reasons for the
difference.
Response: Not applicable.
Question: Has your client approved your prospective budget
and staffing plan, and, if so for what budget
period?
Response: The Committee has approved the terms of retention
set forth in the Application and this Declaration,
including the proposed rates and primary
responsible personnel. If requested by the
Committee, Sills will submit a budget and staffing
plan consistent with the form identified as Exhibit
C to the U.S. Trustee Guidelines for approval to
the Committee in the normal course of its
representation.
Andrew H. Sherman, Esq., a partner at Sills Cummis & Gross P.C.,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Andrew H. Sherman, Esq.
Boris I. Mankovetskiy, Esq.
SILLS CUMMIS & GROSS P.C.
One Riverfront Plaza,
Newark, NJ 07102
Tel: (973) 643-7000
Fax: (973) 643-6500
Email: asherman@sillscummis.com
bmankovetskiy@sillscummis.com
About Mercy Hospital
Mercy Hospital, Iowa City, Iowa is a Catholic-based Iowa nonprofit
corporation and a tax-exempt organization described in Section
501(c)(3) of the Internal Revenue Code of 1986 (as amended) that
operates an acute care community hospital and clinics located in
Iowa City, Iowa and surrounding communities.
Mercy Hospital and affiliates, Mercy Iowa City ACO, LLC and Mercy
Services Iowa City, Inc. sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Iowa Lead Case No. 23-00623) on
Aug. 7, 2023. In its petition signed by Mark E. Toney, chief
restructuring officer, Mercy Hospital disclosed up to $500 million
in both assets and liabilities.
Judge Thad J. Collins oversees the cases.
The Debtors tapped Nyemaster Goode, P.C and McDermott Will & Emery
LLP as bankruptcy co-counsel; Toneykorf Partners, LLC to provide
interim management services; H2C Securities Inc. as investment
banker; and Epiq Corporate Restructuring, LLC as notice and claims
agent.
Mary Jensen, Acting U.S. Trustee for Region 12, appointed an
official committee to represent unsecured creditors in the Debtors'
Chapter 11 cases. Sills Cummis & Gross P.C., and Cutler Law Firm,
P.C. as counsels. FTI Consulting, Inc. as financial advisor.
MERIDIAN RESTAURANTS: Taps Tanner LLC as Accountant
---------------------------------------------------
Meridian Restaurants Unlimited, LC and its affiliates seek approval
from the U.S. Bankruptcy Court for the District of Utah to employ
Tanner LLC as accountant.
Tanner will render these services:
(a) prepare federal and state income tax returns; and
(b) perform services rendered in connection with the audit of
the Meridian Restaurants 401(k) Plan for the year ended December
31, 2021.
As of March 20, Tanner was owed $88,248.63 for services rendered to
the Debtors prior to the petition date. Tanner has written off this
amount and has not filed a proof of claim seeking payment of the
pre-petition amount.
The hourly rates of Tanner's professionals and support staff are as
follows:
Partner/Principal $530
Director $450
Senior Manager $415
Manager $375
Senior $290
Associate $230
Intern $170
In addition, the firm will be reimbursed for expenses incurred.
Grayden Johnson, a member of Tanner, disclosed in a court filing
that the firm is a "disinterested person" as defined in Section
101(14) of the Bankruptcy Code.
The firm can be reached through:
Grayden Johnson
Tanner LLC
Key Bank Tower at City Creek
36 S. State St., Suite 600
Salt Lake City, UT 84111
Telephone: (801) 532-7444
Facsimile: (801) 364-5331
About Meridian Restaurants Unlimited
Meridian Restaurants Unlimited, LC, owner and operator of
restaurants in Utah, and its affiliates filed voluntary petitions
for relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Utah
Case No. 23-20731) on March 2, 2023. At the time of the filing,
Meridian Restaurants Unlimited disclosed $10 million to $50 million
in both assets and liabilities.
Judge Kevin R. Anderson oversees the cases.
The Debtors tapped Markus Williams Young & Hunsicker, LLC as
bankruptcy counsel; Ray Quinney & Nebeker P.C. as local and
litigation counsel; Peak Franchise Capital, LLC as financial
advisor; Hilco Corporate Finance, LLC as investment banker; Tanner
LLC as accountants and accounting advisors; and Keen-Summit Capital
Partners, LLC as real estate advisor. BMC Group, Inc. is the
noticing agent.
The U.S. Trustee for Region 19 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases. The
committee is represented by Foley & Lardner, LLP.
METCALF ANTIQUE: Seeks to Hire Evans & Mullinix as Legal Counsel
----------------------------------------------------------------
Metcalf Antique Mall, LLC seeks approval from the U.S. Bankruptcy
Court for the District of Kansas to employ the law firm of Evans &
Mullinix, PA to handle its Chapter 11 case.
The hourly rates of the firm's counsel and staff are as follows:
Colin N. Gotham $350
Paralegals $125
In addition, the firm will be reimbursed for expenses incurred.
The firm received a retainer in the amount of $6,740 on or about
September 25, 2023.
Colin Gotham, Esq., an attorney at Evans & Mullinix, disclosed in a
court filing that the firm is a "disinterested person" as defined
in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Colin N. Gotham, Esq.
Evans & Mullinix, PA
7225 Renner Road, Suite 200
Shawnee, KS 66217
Telephone: (913) 962-8700
Facsimile: (913) 962-8701
E-mail: cgotham@emlawkc.com
About Metcalf Antique Mall
Metcalf Antique Mall, LLC operates the Antique Mall.
The Debtor filed Chapter 11 petition (Bankr. D. Kan. Case No.
23-21127) on Sept. 25, 2023, with up to $50,000 in assets and up to
$500,000 in liabilities. Andrew T. Rowland, owner, signed the
petition.
Colin Gotham, Esq., at Evans & Mullinix, PA, represents the Debtor
as legal counsel.
MICHAELS COS: S&P Downgrades ICR to 'CCC+', Outlook Negative
------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on U.S.-based
creative products retailer The Michaels Cos. Inc. to 'CCC+' from
'B-'. The outlook is negative.
S&P said, "At the same time, we lowered our issue-level ratings on
the company's term loan and senior secured notes to 'CCC+' from
'B-'. The '3' recovery rating is unchanged. We also lowered our
issue-level rating on the company's senior unsecured notes to
'CCC-' from 'CCC'. The '6' recovery rating is unchanged."
The negative outlook reflects the risk of a potential downgrade if
weak sales trends fail to stabilize, limiting cash generation and
pressuring credit metrics causing us to conclude a default scenario
over the next 12 months is likely.
Persistent sales declines are hindering Michaels' ability to
restore profitability and drive stronger free cash flow to support
its heavily indebted capital structure. Revenue declined 5.1% in
the second quarter of fiscal 2023 due to lower average ticket and
transactions, marking nine consecutive quarters of shrinking sales.
Customer traffic trends have weakened in the current quarter and
Michaels continues to experience sales headwinds within its
technology product category. S&P said, "We believe a meaningful
rebound in customer demand is unlikely over the near term as
discretionary income remains pressured by persistent inflation. In
response to weaker consumer demand and ongoing intense competition,
the company has increased promotional activity and advertising to
drive traffic, which we expect will drag on gross margin
improvement. We expect weaker top-line performance this year and
into fiscal 2024 will constrain Michaels' ability to leverage its
fixed costs. As a result, our forecast now projects less EBITDA
improvement, resulting in leverage remaining high and free
operating cash flow (FOCF) remaining at insufficiently low levels
to support the company's $4.1 billion outstanding debt balance."
Softer earnings and higher interest expense will limit FOCF
improvement over the next 12 months. Michaels cash burn moderated
through the second quarter of fiscal 2023 to $111 million, largely
due to a significant reduction in freight cost and excess safety
inventory. Michaels supply chain initiatives have contributed to
better inventory management and benefited margin improvement this
year. S&P Global Ratings-adjusted EBITDA margin improved 400 basis
points (bps) year over year to the mid-16% area in the quarter due
to lower international transportation expenses, change in sales
mix, and lower inventory reserves. S&P said, "We expect the pace of
margin improvement will slow because of sales deleverage. In
addition, the risk of intensifying competition could further delay
margin recovery. We forecast FOCF approaching $100 million in
fiscal 2023 and remaining in this area in fiscal 2024, up from a
$255 million deficit last year, but meaningfully below its
pre-pandemic levels that averaged approximately $350 million."
S&P said, "We view the company's capital structure as potentially
unsustainable due to its elevated leverage and suppressed FOCF. S&P
Global Ratings-adjusted leverage remains high in the low-6x area
(which compares to the company's mid-7x calculation) in the second
quarter of fiscal 2023. In addition, S&P Global Ratings-adjusted
EBITDA interest coverage decreased to 2x due to higher interest
expenses from the company's floating rate debt facilities. Despite
the higher interest burden, we expect Michaels will maintain
sufficient liquidity over the next 12 months. This reflects our
forecast for positive FOCF generation and availability under its $1
billion asset-based lending (ABL) facility. Outstanding borrowings
increased to $118 million during the second quarter, and we expect
the balance will increase further in the third quarter to fund
inventory purchases ahead of the company's peak holiday selling
season. While we expect the company will prioritize liquidity amid
a challenging environment, year-to-date, Michaels has repurchased
approximately $40 million of its $1.3 billion 7.875% unsecured
notes for roughly $27 million in open market transactions using its
ABL facility.
"The negative outlook reflects the risk of a potential downgrade if
weak sales trends fail to stabilize, straining cash generation and
pressuring credit metrics that cause us to conclude a default
scenario over the next 12 months is likely.
"We could lower our rating on Michaels if we envision a specific
default scenario over the next 12 months, which could include a
distressed exchange. This could occur if the company is unable to
stabilize sales performance, expand EBITDA margin, and generate
meaningfully positive FOCF."
S&P could raise its rating on Michaels if operating performance
improved meaningfully to support its current capital structure,
including:
-- Positive same-store sales and operating margin improvement
leading to a rebound in EBITDA with leverage sustained below 5.5x;
and
-- Meaningful improvement in free cash flow generation that can
support the current capital structure.
MIDWEST OVERNITE: James Overcash Named Subchapter V Trustee
-----------------------------------------------------------
Daniel Casamatta, Acting U.S. Trustee for Region 13, appointed
James Overcash, Esq., as Subchapter V trustee for Midwest Overnite,
Inc.
Mr. Overcash, a partner at Woods Aitken, LLP, will be paid an
hourly fee of $350 for his services as Subchapter V trustee and
will be reimbursed for work-related expenses incurred.
Mr. Overcash declared that he is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
James A. Overcash, Esq.
Woods Aitken, LLP
301 South 13th Street, Suite 500
Lincoln, NE 68508
Phone: 402-437-8519
Email: jovercash@woodsaitken.com
About Midwest Overnite
Omaha-based Midwest Overnite, Inc. operates in the general freight
trucking industry.
Midwest Overnite sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Neb. Case No. 22-80737) on Oct. 6, 2022,
with up to $1 million in assets and up to $10 million in
liabilities. Chris Horn, Sr., president of Midwest Overnite, signed
the petition.
Judge Thomas L. Saladino oversees the case.
Patrick R. Turner, Esq., at Turner Legal Group, LLC and James
Place, Esq., at Place Law Office serve as the Debtor's counsels.
MOVIA ROBOTICS: General Unsecureds to Recover 0% in Plan
--------------------------------------------------------
Movia Robotics, Inc. n/k/a Old M. Robotics, Inc. submitted a
(Proposed) Disclosure Statement of Debtor in Possession.
The Plan constitutes a chapter 11 plan for the Debtor and provides
for distribution of the proceeds of the Debtor's bankruptcy court
approved asset sale of all of its assets. See Order Under 11 U.S.C.
section 363 and Fed R. Bankr. P. 6004 Approving and Authorizing the
Sale of Assets of the Estate, July 26, 2023. Currently, the Debtor
is holding $275,064.72 in the estate. The Debtor does not
anticipate receiving any additional material funds. The Debtor
recommends that you vote to accept the Plan. Each creditor must,
however, review the Plan and Disclosure Statement carefully and in
their entirety (including all Exhibits) and determine whether to
accept or reject the Plan. The Plan should be reviewed carefully
before deciding to accept or reject the Plan.
The assets of the estate are cash in the approximate amount of
$275,000 and the value of the estate's avoidance actions. The
Debtor values the avoidance action at $0 considering the merits of
said actions, the costs associated with commencing and prosecuting
said actions, and the prospects of collection on any judgments
obtained.
Under the Plan, Class 3 Priority Unsecured Claims will be paid the
Remaining Sale Proceeds, as defined and described in Article V, on
the later of (i) the Effective Date, or (ii) the date of Allowance
of the Priority Unsecured Claim if such claim is Disputed on the
Effective Date. Class 3 is impaired.
Class 4 General Unsecured Claims will receive no distribution under
this Plan. Class 4 is impaired.
On the Effective Date, the Debtor will distribute the proceeds of
the sale of its assets to the entity now known as Movia, Inc.,
along with all its other available cash, as follows:
* Administrative Expenses. All Allowed fees to the Debtor's
professionals.
* SBA. Payment of $76,763.35 to the SBA in full and final
satisfaction of account of all claims, including its Class 2 Claim.
* Webster Bank. Payment of $73,586.38 to Webster Bank in full and
final satisfaction of account of all claims, including its Class 3
Claim.
* Priority Unsecured Claims. All Sale Proceeds and other available
cash remaining after the payments described in paragraphs 5.1.1,
5.1.2, and 5.1.3 shall be distributed to Class 4 Creditors on a pro
rata basis until all money held by the Estate has been
distributed.
Counsel to the Debtor and Debtor-in-Possession:
Timothy D. Miltenberger, Esq.
COHN BIRNBAUM & SHEA P.C.
CityPlace II, 15th Floor, 185 Asylum Street
Hartford, CT 06103
E-mail: Tmiltenberger@cbshealaw.com
A copy of the Disclosure Statement dated September 20, 2023, is
available at https://tinyurl.ph/nlpAS from PacerMonitor.com.
About Movia Robotics
Movia Robotics, Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Conn. Case No. 23-20024) on Jan. 18,
2023, with up to $10 million in both assets and liabilities.
Timothy Gifford, president of Movia Robotics, signed the petition.
Judge James J. Tancredi oversees the case.
The Debtor tapped Timothy D. Miltenberger, Esq., at Cohn Birnbaum &
Shea, P.C. as legal counsel; Supporting Strategies as bookkeeper;
and Koos & Company, P.C. as accountant.
MURRIETA HOLDINGS: Case Summary & One Unsecured Creditor
--------------------------------------------------------
Debtor: Murrieta Holdings 2012-12, LLC
213 Park Avenue
Laguna Beach, CA 92652
Business Description: The Debtor owns a vacant land in Vista,
California.
Chapter 11 Petition Date: October 4, 2023
Court: United States Bankruptcy Court
Central District of California
Case No.: 23-12045
Judge: Hon. Theodor Albert
Debtor's Counsel: James Mortensen, Esq.
SOCAL LAW GROUP, PC
2855 Michelle Drive Suite 120
Irvine CA 92606
Tel: 213-387-7414
Email: james@socallawgroup.com
Total Assets: $2,800,000
Total Liabilities: $1,234,000
The petition was signed by D. Scott Abernethy as manager.
The Debtor listed Ford & Diulio as its sole unsecured creditor
holding a claim of $35,000 for professional services.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/SA6FTYA/Murrieta_Holdings_2012-12_LLC__cacbke-23-12045__0001.0.pdf?mcid=tGE4TAMA
NASHVILLE SENIOR: Committee Taps Rock Creek as Financial Advisor
----------------------------------------------------------------
The official committee of unsecured creditors appointed in the
Chapter 11 cases of Nashville Senior Care, LLC and its affiliates
seeks approval from the U.S. Bankruptcy Court for the Middle
District of Tennessee to employ Rock Creek Advisors, LLC.
The committee requires a financial advisor to:
(a) assist with the review and analysis of the Debtors' "first
day" orders and the budgets relating to those orders;
(b) assist with a review of the Debtors' business model,
operations, assets and liabilities, sales, dispositions, or any
proposed alternative transactions with Debtors' assets or
business;
(c) assist in the review of financial information;
(d) assist in the review of the Debtors' cost/benefit
evaluations with respect to the assumption or rejection of
executory contracts and/or unexpired leases;
(e) assist in the investigation and pursuit of avoidance
actions;
(f) assist in the review of the claims reconciliation and
estimation process;
(g) attend meetings with the Debtors, creditors, potential
investors, the committee, and any other official committees
organized in these Chapter 11 cases, the U.S. Trustee, other
parties-in-interest, and professionals hired by the same, as
requested;
(h) assist with review and/or preparation of information and
analysis necessary for the confirmation of a plan of liquidation in
these Chapter 11 cases; and
(i) render such other general business consulting or other
assistance as the committee or its other retained professionals may
deem necessary.
The hourly rates of the firm's professionals are as follows:
Directors $475 - $595
Associates $295 - $475
In addition, the firm will seek reimbursement for expenses
incurred.
Brian Ayers, a managing director at Rock Creek Advisors, disclosed
in a court filing that the firm is a "disinterested person" within
the meaning of Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Brian E. Ayers
Rock Creek Advisors, LLC
1738 Belmar Blvd.
Belmar, NJ 07719
Telephone: (201) 315-2521
Email: bayers@rockcreekfa.com
About Nashville Senior Care
Nashville Senior Care, LLC and affiliates are comprised of five
senior living communities and one Medicare-certified home health
agency affiliated with the Trousdale Foundation. All of the real
estate associated with the senior living communities is owned by
the Companies.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Tenn. Lead Case No. 23-02924) on
August 14, 2023. In the petitions signed by Thomas Johnson,
executive director, Nashville Senior Care disclosed up to $100
million in assets and up to $500 million in liabilities.
Judge Marian F. Harrison oversees the cases.
The Debtors tapped McDonald Hopkins LLC as general bankruptcy
counsel, EmergeLaw, PLC as co-counsel, and Houlihan Lokey Capital,
Inc., as investment banker. Stretto, Inc. is the notice, claims and
balloting agent.
On August 31, 2023, the Office of the United States Trustee
appointed an official committee of unsecured creditors in these
Chapter 11 cases. The committee tapped Womble Bond Dickinson (US),
LLP and Dunham Hildebrand, PLLC as legal counsel, and Rock Creek
Advisors, LLC as financial advisor.
NEILLY'S FOOD: Court OKs Cash Collateral Access Thru Oct 18
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Pennsylvania
authorized Neilly's Food, LLC to use cash collateral on an interim
basis in accordance with the budget.
The Debtor is permitted to pay regular, post-Petition expenses,
including any fees owed to the Office of the U.S. Trustee and
allowed fees and costs to professionals. Such payments will
generally be in accordance with the budget attached to the Motion.
Included in the sums permitted to be paid by the Debtor is the sum
of $500 per month on account of fees winch may become owed to the
Subchapter V Trustee. Lisa A. Rynard. Esquire. The $500 per month
payments willbe paid to Cunningham. Chemicoff & Warshawsky, P.C.,
counsel to the Debtor, to be held by such counsel in escrow until
further Order of the Court.
JTS Capital, York Traditions Bank, and M&T Bank are granted
replacement liens in the Debtor's post-Petition cash collateral
consisting of receivables, cash and the proceeds thereof, and in
all assets of the Debtor to which the Lenders have liens and
security interests pre-Petition, to the extent such liens exist and
in such priority as exists pre-Petition, to the extent there is a
diminution in value of the Lenders' post-Petition Cash Collateral
position. Such liens will be perfected and effective without any
further recordation action and such liens will survive conversion
of this case or appointment of a Trustee in this case. In the event
that post-Petition Cash Collateral is insufficient to provide an
amount equal to such diminution, then the Lenders will have super
priority status pursuant to 11 U.S.C. Section 364(c)(1) and have an
administrative claims having priority over all other administrative
claims.
A continued hearing on the matter is set for October 18, 2023 at
9:30 a.m.
A copy of the order is available at https://urlcurt.com/u?l=rkqwEZ
from PacerMonitor.com.
About Neilly's Food, LLC
Neilly's Food, LLC is a manufacturer and distributor of healthy
multicultural meal solutions.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Pa. Case No. 23-02135) on September
19, 2023. In the petition signed by Albert Ndjee, manager/member,
the Debtor disclosed up to $1 million in assets and up to $10
million in liabilities.
Judge Henry W. Van Eck oversees the case.
Robert E. Chernicoff, Esq., at Cunningham, Chernicoff & Warshawsky
PC, represents the Debtor as legal counsel.
NEILLY'S FOOD: Lisa Rynard Named Subchapter V Trustee
-----------------------------------------------------
The U.S. Trustee for Regions 3 and 9 appointed Lisa Rynard, Esq.,
at the Law Office of Lisa A. Rynard as Subchapter V trustee for
Neilly's Food, LLC.
Ms. Rynard will be paid an hourly fee of $300 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Rynard declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Lisa A. Rynard, Esq.
Law Office of Lisa A. Rynard
240 Broad Street
Montoursville, PA 17754
Phone: (570) 505-3289
Email: larynard@larynardlaw.com
About Neilly's Food
Neilly's Food, LLC is a manufacturer and distributor of healthy
multicultural meal solutions in York, Pa.
The Debtor filed Chapter 11 petition (Bankr. M.D. Pa. Case No.
23-02135) on Sept. 19, 2023, with up to $1 million in assets and up
to $10 million in liabilities. Albert Ndjee, manager and member,
signed the petition.
Judge Henry W. Van Eck oversees the case.
Robert E. Chernicoff, Esq., at Cunningham, Chernicoff & Warshawky
PC, represents the Debtor as legal counsel.
NEW BEGINNING: Unsecureds Owed $3M to Get 4.1% in Plan
------------------------------------------------------
New Beginning Realty Corp. submitted a Disclosure Statement.
Debtor, New Beginning Realty Corp., is a corporation authorized to
do business within the Commonwealth of Puerto Rico, incorporated in
2011. The main business of the Debtor is the rental and
administration of its real property located at: #425, Ave. Barbosa,
Valencia Development, Oriente Ward, San Juan, PR 00923. The real
property is a "single asset real estate" within the definition of
11 U.S.C. §101(51B). The entire facility and building are leased
in favor tenant, Dewey University, Inc., with whom a written
commercial lease agreement was signed on June 15, 2015. The
commercial lease agreement expires on June 30, 2035. The Debtor is
up to date in all governmental permits for its operation.
Under the Plan, Class 4 Holders of Allowed General Unsecured Claims
total $3,056,818.95 and will recover 4.10% of their claims. Within
30 days after the Effective Date of the Plan, Class 4 claimants
will commence to receive a repayment of 4.10% of their claimed debt
through 60 monthly payments totaling $2,088.83. Total amount to be
received by Planet Home on account of the unsecured portion of its
claim #4 is $110,975.41 and amount to be received on account of
unsecured claim #5 is $14,354.16. Class 4 is impaired.
The source of payments under the proposed Plan will come from the
operation of Debtor's business.
The Plan provides for the full payment of Chapter 11 Administrative
Expense Claims, including professional fees and US Trustee's
quarterly fees, on the Effective Date. Under the Plan, the Holders
of Tax Claims and SBA claim will receive 100% of their claims, as
set forth in Debtor's Plan. Moreover, under the Plan, the Holders
of General Unsecured Claims will receive 4.10% of their claims.
Counsel for the Debtor:
Noemí Landrau Rivera, Esq.
LANDRAU RIVERA & ASSOC.
P.O. Box 270219
San Juan, PR 00928
Tel: (787) 774-0224
E–mail: nlandrau@landraulaw.com
A copy of the Disclosure Statement dated September 20, 2023, is
available at https://tinyurl.ph/aEDUU from PacerMonitor.com.
About New Beginning Realty Corp.
New Beginning Realty Corp., a company in San Juan, P.R., filed its
voluntary petition for Chapter 11 protection (Bankr. D.P.R. Case
No. 23-01049) on April 12, 2023, with as much as $1 million to $10
million in both assets and liabilities. Carlos A. Quinones Alfonso,
president of New Beginning Realty Corp., signed the petition.
Noemi Landrau Rivera, Esq., at Landrau Rivera & Assoc. serves as
the Debtor's legal counsel.
NOBLE HOUSE: Seeks to Hire Craig Barbarosh as Independent Manager
-----------------------------------------------------------------
Noble House Home Furnishings LLC and its affiliates seek approval
from the U.S. Bankruptcy Court for the Southern District of Texas
to employ Craig Barbarosh, a board director at Lifecore Biomedical,
Inc., as their independent manager.
The Debtors agreed to pay the independent manager $25,000 per month
and to reimburse him for all reasonable and necessary out of pocket
expenses.
Mr. Barbarosh disclosed in a court filing that the firm is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The professional can be reached at:
Craig Barbarosh
Lifecore Biomedical, Inc.
3515 Lyman Blvd.
Chaska, MN 55318
Telephone: (952) 368-4300
About Noble House Home Furnishings
Noble House Home Furnishings, LLC and its affiliates filed their
petitions under Chapter 11, Subchapter V of the Bankruptcy Code
(Bankr. S.D. Tex. Case Nos. 23-90773) on Sept. 11, 2023. In the
petitions signed by Gayla Bella, chief financial officer, Noble
House Home Furnishings disclosed up to $500 million in both assets
and liabilities.
Judge Christopher M. Lopez oversees the cases.
The Debtors tapped Pachulski Stang Ziehl & Jones LLP as legal
counsel; Riveron Management Services, LLC to provide chief
financial officer and other professionals; Lincoln Partners
Advisors LLC as investment banker; Flatiron Law Group LLP as
special corporate counsel; and Craig Barbarosh, a board director at
Lifecore Biomedical, Inc., as independent manager.
NOBLE HOUSE: Taps Flatiron Law Group as Special Corporate Counsel
-----------------------------------------------------------------
Noble House Home Furnishings LLC and its affiliates seek approval
from the U.S. Bankruptcy Court for the Southern District of Texas
to employ Flatiron Law Group LLP as special corporate counsel.
The Debtors need a special corporate counsel to provide advice on
corporate and corporate governance matters, including with respect
to any sale of their assets, and in connection with their facility,
including the delivery of a legal opinion of borrower's legal
counsel on the execution, delivery, and performance of the loan
documents.
The hourly rates of the firm's attorneys are as follows:
Mark Haddad $795
Leonard Nuara $795
Conrad Everhard $795
In addition, the firm will seek reimbursement for expenses
incurred.
Mark Haddad, Esq., a partner at Flatiron Law Group, provided the
following in response to the request for additional information set
forth in Section D of the Revised U.S. Trustee Guidelines:
Question: Did you agree to any variations from, or alternatives
to, your standard or customary billing arrangements for this
engagement?
Answer: No.
Question: Do any of the professionals included in this engagement
vary their rate based on the geographic location of the bankruptcy
case?
Answer: No.
Question: If you represented the client in the twelve months
prepetition, disclose your billing rates and material financial
terms for the prepetition engagement, including any adjustments
during the twelve months prepetition. If your billing rates and
material financial terms have changed post-petition, explain the
difference and reasons for the difference.
Answer: The material financial terms for the prepetition
engagement remained the same as the engagement was hourly based,
except for a limited period of time prepetition, the firm utilized
a blended rate of $725 per hour. The standard hourly rates of the
firm are subject to periodic adjustment in accordance with the
firm's practice.
Question: Has your client approved your respective budget and
staffing plan, and if so, for what budget period?
Answer: The Debtors and the firm have discussed an anticipated
budget for these Chapter 11 cases.
Mr. Haddad disclosed in a court filing that the firm is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
Mark Haddad
Flatiron Law Group LLP
500 Fashion Avenue, 8th Floor
New York, NY 10018
Telephone: (646) 350-3600
About Noble House Home Furnishings
Noble House Home Furnishings, LLC and its affiliates filed their
petitions under Chapter 11, Subchapter V of the Bankruptcy Code
(Bankr. S.D. Tex. Case Nos. 23-90773) on Sept. 11, 2023. In the
petitions signed by Gayla Bella, chief financial officer, Noble
House Home Furnishings disclosed up to $500 million in both assets
and liabilities.
Judge Christopher M. Lopez oversees the cases.
The Debtors tapped Pachulski Stang Ziehl & Jones LLP as legal
counsel; Riveron Management Services, LLC to provide chief
financial officer and other professionals; Lincoln Partners
Advisors LLC as investment banker; Flatiron Law Group LLP as
special corporate counsel; and Craig Barbarosh, a board director at
Lifecore Biomedical, Inc., as independent manager.
NOBLE HOUSE: Taps Lincoln Partners Advisors as Investment Banker
----------------------------------------------------------------
Noble House Home Furnishings LLC and its affiliates seek approval
from the U.S. Bankruptcy Court for the Southern District of Texas
to employ Lincoln Partners Advisors LLC as investment banker.
The firm will render these investment banking services:
(a) With respect to a sale transaction:
i. identifying potential parties who might be interested in
entering into a sale transaction;
ii. assisting with the preparation of an information
memorandum for delivery to potential parties to a sale transaction
describing the Debtors, the business and/or the assets to be sold;
iii. formulating and recommending a strategy for pursuing a
potential sale transaction;
iv. contacting and eliciting interest from potential parties
to a sale transaction;
v. conveying information desired by potential parties to a
sale transaction not contained in the sale information memorandum;
vi. reviewing and evaluating potential parties to a sale
transaction; and
vii. reviewing and analyzing proposals regarding a potential
sale transaction.
(b) With respect to a financing transaction:
i. advising the Debtors regarding an appropriate capital
structure for them;
ii. identifying financing sources who might be interested in
participating in a financing transaction;
iii. assisting with the preparation of an information
memorandum for delivery to financing sources, describing the
Debtors and collectively with the sale information memorandum;
iv. formulating and recommending a strategy for pursuing a
potential financing transaction;
v. contacting and eliciting interest from various financing
sources;
vi. conveying information desired by financing sources not
contained in the financing information memorandum and collectively
with the sale supplemental information; and
vii. reviewing and analyzing all proposals, both preliminary
and firm, received from financing sources relating to a financing
transaction.
(c) With respect to a restructuring transaction:
i. assisting the Debtors in developing a restructuring plan;
ii. assisting the Debtors in structuring any securities to be
issued pursuant to the restructuring plan;
iii. assisting the Debtors in negotiating the restructuring
plan with lenders, creditors, and other interested parties;
iv. assisting the Debtors in developing a plan of
reorganization, if they file a voluntary case under the Bankruptcy
Code; and
v. participating in hearings before the relevant bankruptcy
court, if applicable, with respect to matters upon which Lincoln
has provided advice.
Lincoln will be compensated as follows:
(a) a sale transaction fee equal to 2.5 percent of the
enterprise value;
(b) a financing transaction fee equal to (i) 1.50 percent of
the committed amount of the first lien debt; plus, (ii) 4 percent
on the committed amount of the second lien debt; plus (iii) 4
percent on any committed amount of subordinated debt, preferred
stock, or common stock raised;
(c) a restructuring transaction fee equal to $1,500,000; and
(d) a reasonable fee as negotiated by the Debtors and
Lincoln.
Brent Williams, a managing director at Lincoln Partners Advisors,
disclosed in a court filing that the firm is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Brent C. Williams
Lincoln Partners Advisors LLC
299 Park Ave., 7th Floor
New York, NY 10022
Telephone: (212) 257-7750
Email: bwilliams@lincolninternational.com
About Noble House Home Furnishings
Noble House Home Furnishings, LLC and its affiliates filed their
petitions under Chapter 11, Subchapter V of the Bankruptcy Code
(Bankr. S.D. Tex. Case Nos. 23-90773) on Sept. 11, 2023. In the
petitions signed by Gayla Bella, chief financial officer, Noble
House Home Furnishings disclosed up to $500 million in both assets
and liabilities.
Judge Christopher M. Lopez oversees the cases.
The Debtors tapped Pachulski Stang Ziehl & Jones LLP as legal
counsel; Riveron Management Services, LLC to provide chief
financial officer and other professionals; Lincoln Partners
Advisors LLC as investment banker; Flatiron Law Group LLP as
special corporate counsel; and Craig Barbarosh, a board director at
Lifecore Biomedical, Inc., as independent manager.
NOBLE HOUSE: Taps Pachulski Stang Ziehl & Jones as Legal Counsel
----------------------------------------------------------------
Noble House Home Furnishings LLC and its affiliates seek approval
from the U.S. Bankruptcy Court for the Southern District of Texas
to employ Pachulski Stang Ziehl & Jones, LLP.
The Debtors require legal counsel to:
(a) assist, advise, and represent the Debtors in their
consultations with estate constituents regarding the administration
of the Chapter 11 cases;
(b) assist, advise, and represent the Debtors in any manner
relevant to their financing needs, asset dispositions, leases, and
other contractual obligations;
(c) assist, advise, and represent the Debtors in any issues
associated with the assets, liabilities, and financial condition of
the Debtors;
(d) assist, advise, and represent the Debtors in the
negotiation, formulation, and drafting of any plan of
reorganization and disclosure statement;
(e) assist, advise, and represent the Debtors in the
performance of their duties and the exercise of their powers under
the Bankruptcy Code, the Bankruptcy Rules, and any applicable local
rules and guidelines; and
(f) provide such other necessary advice and services as the
Debtors may require in connection with the Chapter 11 cases.
The hourly rates of the firm's counsel and staff are as follows:
Partners $995 - $1,995
Of Counsel $875 - $1,525
Associates $725 - $895
Paraprofessionals $495 - $545
In addition, the firm will seek reimbursement for expenses
incurred.
The firm has received payments from the Debtors during the year
prior to the petition date in the amount of $250,000 in connection
with its prepetition representation of the Debtors.
Teddy Kapur, Esq., a partner at Pachulski Stang Ziehl & Jones, also
provided the following information in response to the request for
additional information set forth in Paragraph D.1 of the Fee
Guidelines.
Question: Did you agree to any variations from, or alternatives
to, your standard or customary billing arrangements for this
engagement?
Response: No.
Question: Do any of the professionals included in this engagement
vary their rate based on the geographic location of the bankruptcy
case?
Response: No.
Question: If you represented the client in the 12 months
prepetition, disclose your billing rates and material financial
terms for the prepetition engagement, including any adjustments or
discounts offered during the 12 months prepetition. If your billing
rates and material financial terms have changed post-petition,
explain the difference and the reasons for the difference.
Response: The material financial terms for the prepetition
engagement remained the same as the engagement was hourly based.
The billing rates and material financial terms for the
post-petition period remain the same as the prepetition period. The
standard hourly rates of the firm are subject to periodic
adjustment in accordance with the firm's practice.
Question: Has your client approved your prospective budget and
staffing plan, and, if so, for what budget period?
Response: The Debtors and the firm have discussed an anticipated
budget for these Chapter 11 cases.
Mr. Kapur disclosed in a court filing that the firm is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
Teddy M. Kapur, Esq.
Pachulski Stang Ziehl & Jones LLP
10100 Santa Monica Blvd., 13th Floor
Los Angeles, CA 90067
Telephone: (310) 277-6910
Facsimile: (310) 201-0760
Email: tkapur@pszjlaw.com
About Noble House Home Furnishings
Noble House Home Furnishings, LLC and its affiliates filed their
petitions under Chapter 11, Subchapter V of the Bankruptcy Code
(Bankr. S.D. Texas Lead Case No. 23-90773) on Sept. 11, 2023. In
the petitions signed by Gayla Bella, chief financial officer, Noble
House Home Furnishings disclosed up to $500 million in both assets
and liabilities.
Judge Christopher M. Lopez oversees the cases.
The Debtors tapped Pachulski Stang Ziehl & Jones LLP as legal
counsel; Riveron Management Services, LLC to provide chief
financial officer and other professionals; Lincoln Partners
Advisors LLC as investment banker; Flatiron Law Group LLP as
special corporate counsel; and Craig Barbarosh, a board director at
Lifecore Biomedical, Inc., as independent manager.
NOBLE HOUSE: Taps Riveron to Provide CFO
----------------------------------------
Noble House Home Furnishings LLC and its affiliates seek approval
from the U.S. Bankruptcy Court for the Southern District of Texas
to employ Riveron Management Services, LLC to provide Gayla Bella,
the firm's senior managing director, as chief financial officer
(CFO) and other professionals.
The firm will render these financial and operational services:
(a) perform all normal chief financial officer duties as CFO;
(b) review and assess management's operating, cash flow,
balance sheet, and borrowing base projections;
(c) prepare, review, assess and update a 13-week rolling cash
flow forecast model;
(d) assess the risks and opportunities affecting the Debtors'
future performance;
(e) prepare data and analyses necessary to meet the
requirements and requests of various parties related to the
Debtors' restructuring;
(f) evaluate the Debtors' existing financial and operational
condition and evaluate strategic alternatives available to them;
(g) in conjunction with the Debtors' management, manage their
cash, and prepare ongoing forecasting of the cash flows and claims
pools and estimate creditor recoveries;
(h) identify business improvement opportunities and cost
rationalization opportunities and develop and implement a
turnaround plan to realize such opportunities;
(i) manage negotiations with key vendors, creditors, and other
constituents of the Debtors;
(j) prepare data and or analysis as required to support any
capital raising transaction and or sale of the business; and
(k) advise the board on restructuring matters.
The firm will also render these Chapter 11 services:
(a) compile and format data and analyses necessary to meet the
financial reporting requirements mandated by the United States
Bankruptcy Code and the United States Trustee's office;
(b) prepare analyses and data required under the Debtors'
financing documents;
(c) manage analyses and reconciliation of claims against the
Debtors and bankruptcy avoidance actions;
(d) prepare for court hearings, for the argument of motions
and objections asserted by the Debtors, and provide testimony as
required;
(e) prepare analyses in support of a plan and disclosure
statement;
(f) manage the Debtors' negotiations with its creditor
constituencies;
(g) provide such other services as requested or directed by
the board.
The hourly rates of the firm's professionals are as follows:
Senior Managing Director $695 - $1,450
Managing Director $595 - $960
Associate Director to Senior Director $395 - $940
Associate to Manager $250 - $535
Paraprofessional $250
In addition, the firm will seek reimbursement for expenses
incurred.
Prior to the petition date, the firm received a retainer from the
Debtors in the total amount of $150,000.
Ms. Bella disclosed in a court filing that the firm is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
Gayla Bella
Riveron Management Services, LLC
461 Fifth Avenue, 12th Floor
New York, NY 10017
Telephone: (954) 952-9245
Email: gayla.bella@riveron.com
About Noble House Home Furnishings
Noble House Home Furnishings, LLC and its affiliates filed their
petitions under Chapter 11, Subchapter V of the Bankruptcy Code
(Bankr. S.D. Tex. Case Nos. 23-90773) on Sept. 11, 2023. In the
petitions signed by Gayla Bella, chief financial officer, Noble
House Home Furnishings disclosed up to $500 million in both assets
and liabilities.
Judge Christopher M. Lopez oversees the cases.
The Debtors tapped Pachulski Stang Ziehl & Jones LLP as legal
counsel; Riveron Management Services, LLC to provide chief
financial officer and other professionals; Lincoln Partners
Advisors LLC as investment banker; Flatiron Law Group LLP as
special corporate counsel; and Craig Barbarosh, a board director at
Lifecore Biomedical, Inc., as independent manager.
NORTH SHORE MANOR: Ordered to File and Serve Plan by Nov. 3
-----------------------------------------------------------
Judge Joseph G. Rosania, Jr. has entered an order that on or before
Nov. 3, 2023, North Shore Manor, Inc., must file with the Court and
serve the Plan.
On or before November 9, 2023, the Debtor's attorney must file with
this Court a certificate of service as to the Plan, order and
ballot.
Nov. 24, 2023, is fixed as the last day by which the holders of
claims and interests may file written acceptances or rejections of
the Plan.
Nov. 24, 2023, is fixed as the last day by which an equity security
holder or creditor whose claim is based on a security must be the
holder of record of the security in order to be eligible to accept
or reject the Plan.
Nov. 24, 2023, is fixed as the last day for filing and serving
written objections to confirmation of the Plan.
An in-person hearing on confirmation of the Plan has been set for
Tuesday, December 12, 2023 at 9:30 a.m., Courtroom B, Fifth Floor,
U.S. Bankruptcy Court, U.S. Custom House, 721 19th Street, Denver,
Colorado 80202.
About North Shore Manor
North Shore Manor, Inc. operates skilled nursing facilities. The
company is based in Loveland, Colo.
North Shore Manor filed a petition under Chapter 11, Subchapter V
of the Bankruptcy Code (Bankr. D. Colo. Case No. 23-10809) on March
6, 2023, with $1 million to $10 million in both assets and
liabilities. Joli A. Lofstedt has been appointed as Subchapter V
trustee.
Judge Joseph G. Rosania Jr. oversees the case.
The Debtor tapped Aaron A. Garber, Esq., at Wadsworth Garber Warner
Conrardy, PC as bankruptcy counsel; Levin Sitcoff Waneka, PC as
special counsel; and Eisner Advisory Group, LLC as accountant.
The U.S. Trustee for Region 19, appointed Leah McMahon as patient
care ombudsman for the Debtor.
NORTHWEST FOUNDATION: Gets OK to Hire Law Offices of Lance L. Lee
-----------------------------------------------------------------
Northwest Foundation for A Course in Miracles received approval
from the U.S. Bankruptcy Court for the Western District of
Washington to employ the Law Offices of Lance L. Lee as its
counsel.
The Debtor requires legal counsel to:
(a) assist in the investigation of the financial affairs of
the estate;
(b) provide legal advice and assistance to the Debtor with
respect to matters relating to this case and creditor
distribution;
(c) prepare all pleadings necessary for proceedings arising
under this case; and
(d) perform all necessary legal services for the estate in
relation to this case.
The firm will charge $400 per hour for attorney fees and $125 per
hour for paralegal fees, plus reimbursement for expenses incurred.
The firm received a retainer payment of $5,000 from Debtor.
Mr. Lee disclosed in a court filing that his firm is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
Lance L. Lee, Esq.
Law Offices of Lance L. Lee
1700 7th Ave., Ste. 2100
Seattle, WA 98101
Telephone: (206) 332-9841
Email: lance@lancelee.com
About Northwest Foundation
Northwest Foundation for A Course in Miracles sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Wash. Case No.
23-11368) on July 27, 2023. In the petition filed by Paul N.
Tuttle, vice president, the Debtor disclosed $2,021,195 in total
assets and $711,603 in total liabilities.
Judge Marc Barreca oversees the case.
The Law Offices of Lance L. Lee serves as the Debtor's bankruptcy
counsel.
ORBITAL INFRASTRUCTURE: Hires Alvarez & Marsal as Financial Advisor
-------------------------------------------------------------------
Orbital Infrastructure Group, Inc. and its affiliates seeks
approval from the U.S. Bankruptcy Court for the Southern District
of Texas to employ Alvarez & Marsal North America, LLC as financial
advisor.
The firm's services include:
a. assistance to the Debtors in the preparation of
financial-related disclosures required by the Court, including the
Debtors' Schedules of Assets and Liabilities, Statements of
Financial Affairs and Monthly Operating Reports;
b. assistance to the Debtors with information and analyses
required pursuant to the Debtors' financing needs, including the
use of cash collateral and budgeting related thereto;
c. assistance with the identification and implementation of
short-term cash management procedures;
d. assistance with the identification of executory contracts
and leases and performance of cost/benefit evaluations with respect
to the affirmation or rejection of each;
e. assistance to Debtors' management team and counsel focused
on the coordination of resources related to the ongoing
reorganization effort;
f. assistance in the preparation of financial information for
distribution to creditors and others, including, but not limited
to, cash flow projections and budgets, cash receipts and
disbursement analysis, analysis of various asset and liability
accounts, and analysis of proposed transactions for which Court
approval is sought;
g. attendance at meetings and assistance in discussions with
potential investors, banks, and other secured lenders, any official
committee(s) appointed in these Chapter 11 Cases, the United States
Trustee, other parties in interest and professionals hired by same,
as requested;
h. analysis of creditor claims by type, entity, and individual
claim, including assistance with development of databases, as
necessary, to track such claims;
i. assistance in the preparation of information and analysis
necessary for the confirmation of a plan of reorganization in these
Chapter 11 Cases, including information contained in the disclosure
statement;
j. assistance in the evaluation and analysis of avoidance
actions, including fraudulent conveyances and preferential
transfers;
k. assistance in the analysis/preparation of information
necessary to assess the tax attributes related to the confirmation
of a plan of reorganization in these Chapter 11 Cases, including
the development of the related tax consequences contained in the
disclosure statement;
l. litigation advisory services with respect to accounting and
tax matters, along with expert witness testimony on case related
issues as required by the Debtors; and
m. provision of such other general business consulting or such
other assistance as Debtors' management or counsel may deem
necessary consistent with the role of a financial advisor to the
extent that it would not be duplicative of services provided by
other professionals in this proceeding.
The firm will be paid at these rates:
Managing Director $1,025 to 1,375 per hour
Director $775 to 975 per hour
Associate $575 to 775 per hour
Analyst $425 to 550 per hour
The firm received a retainer in the amount of $257,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
R. Seth Bullock, a managing director at Alvarez & Marsal North
America, LLC, disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
R. Seth Bullock
Alvarez & Marsal North America, LLC
700 Louisiana Street, Suite 3300
Houston, TX 77002
Telephone: (713) 571-2400
Facsimile: (713) 547-3697
Email: seth.bullock@alvarezandmarsal.com
About Orbital Infrastructure Group, Inc.
Orbital Infrastructure Group, Inc. (NASDAQ: OIG) provides
engineering, design, construction, and maintenance services to
customers in the electric power, telecommunications, and renewable
industries. It designs, installs, upgrades, repairs, and maintains
electric power transmission and distribution infrastructure, and
substation facilities, as well as offers emergency restoration
services; and provides drilled shaft foundation construction
services to the electric transmission and substation, industrial,
telecommunication, and disaster restoration market sectors. Orbital
Infrastructure Group, Inc. was incorporated in 1998 and is
headquartered in Houston, Texas.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 23-90763) on August
23, 2023. In the petition signed by James F. O'Neil III, chief
executive officer, the Debtor disclosed $24,185,668 in assets and
$225,850,276 in liabilities.
Judge David R. Jones oversees the case.
The Debtors tapped Haynes and Boone, LLP as legal counsel, Alvarez
and Marsal North America, LLC as restructuring advisor, Moelis and
Company as investment banker, and Donlin, Recano & Company, Inc. as
claims, noticing, solicitation and administrative agent.
Counsel to the Ad Hoc Group of Front Line Lenders are Davis Polk &
Wardwell LLP and Norton Rose Fulbright US LLP.
Counsel to the Front Line DIP Lenders is Davis Polk & Wardwell
LLP.
Counsel to Alter Domus (US) LLC, as Front Line DIP Agent and
Prepetition Front Line Agent, is Holland & Knight LLP.
Counsel to Streeterville Capital, LLC, as Prepetition Streeterville
Lender and Streeterville DIP Lender, is Brian M. Rothschild, Esq.
at Parsons Behle & Latimer.
Counsel to the Prepetition Promissory Note Holder is Kane Russell
Coleman Logan PC.
ORBITAL INFRASTRUCTURE: Seeks to Hire Haynes and Boone as Counsel
-----------------------------------------------------------------
Orbital Infrastructure Group, Inc. and its affiliates seek approval
from the U.S. Bankruptcy Court for the Southern District of Texas
to employ Haynes and Boone, LLP as counsel.
The firm's services include:
a. advising the Debtors of their rights, powers, and duties as
debtors in possession under the Bankruptcy Code;
b. performing all legal services for and on behalf of the
Debtors that may be necessary or appropriate in the administration
of these Chapter 11 Cases and the Debtors' business;
c. advising the Debtors concerning, and assisting in, the
negotiation and documentation of financing agreements and debt
restructurings;
d. reviewing the nature and validity of agreements relating to
the Debtors' interests in real and personal property and advising
the Debtors of their corresponding rights and obligations;
e. advising the Debtors concerning preference, avoidance,
recovery, or other actions that they may take to collect and to
recover property for the benefit of the estate and its creditors,
whether or not arising under Chapter 5 of the Bankruptcy Code;
f. preparing on behalf of the Debtors all necessary and
appropriate applications, motions, pleadings, draft orders,
notices, and other documents and reviewing all financial and other
reports to be filed in these Chapter 11 Cases;
g. advising the Debtors concerning, and preparing responses
to, applications, motions, complaints, pleadings, notices, and
other papers that may be filed and served in these Chapter 11
Cases;
h. counseling the Debtors in connection with the formulation,
negotiation, and promulgation of a plan of reorganization and
related documents;
i. working with and coordinating efforts among other
professionals to attempt to preclude any duplication of effort
among those professionals and to guide their efforts in the overall
framework of Debtors' reorganization;
j. working with professionals retained by other
parties-in-interest in these Chapter 11 Cases to attempt to
structure a consensual plan of reorganization, or other resolution
for Debtors; and
k. performing such additional legal services, including
representing the Debtors in specific non-bankruptcy matters, as may
be required by the Debtors.
The firm will be paid at these rates:
Partners $650 to $1,650 per hour
Counsel $575 to $1,500 per hour
Associates $340 to $925 per hour
Paraprofessionals $450 to $525 per hour
The firm received an advanced retainer in the amount of $100,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
In accordance with Appendix B-Guidelines for Reviewing Applications
for Compensation and Reimbursement of Expenses Filed under 11
U.S.C. Sec. 330 for Attorneys in Larger Chapter 11 Cases, the
following is provided in response to the request for additional
information:
Question: Did you agree to any variations from, or
alternatives to, your standard or customary billing
arrangements for this engagement?
Response: No.
Question: Do any of the professionals included in this
engagement vary their rate based on the geographic
location of the bankruptcy case?
Response: No.
Question: If you represented the client in the 12 months
prepetition, disclose your billing rates and
material financial terms for the prepetition
engagement, including any adjustments during the 12
months prepetition. If your billing rates and
material financial terms have changed postpetition,
explain the difference and the reasons for the
difference.
Response: The Firm has represented the Debtors in the past 9
months prior to the Petition Date. Haynes and Boone
used the below current hourly rates for prepetition
services as follows: Partners $650–$1,650;
Counsel
$575–$1,500; Associates $340–$925;
Paraprofessionals $450-$525.
Question: Has your client approved your prospective budget
and staffing plan, and, if so for what budget
period?
Response: Haynes and Boone is developing a prospective budget
and staffing plan for these Chapter 11 Cases.
Haynes and Boone and the Debtors will review such
budget following the close of the budget period to
determine a budget for the following period.
Charles A. Beckham, Jr., Esq., a partner at Haynes and Boone, LLP,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Charles A. Beckham, Jr., Esq.
HAYNES AND BOONE, LLP
1221 McKinney Street, Suite 4000
Houston, TX 77010
Tel: (713) 547-2243
Fax: (713) 236-5638
Email: charles.beckham@haynesboone.com
About Orbital Infrastructure Group, Inc.
Orbital Infrastructure Group, Inc. (NASDAQ: OIG) provides
engineering, design, construction, and maintenance services to
customers in the electric power, telecommunications, and renewable
industries. It designs, installs, upgrades, repairs, and maintains
electric power transmission and distribution infrastructure, and
substation facilities, as well as offers emergency restoration
services; and provides drilled shaft foundation construction
services to the electric transmission and substation, industrial,
telecommunication, and disaster restoration market sectors. Orbital
Infrastructure Group, Inc. was incorporated in 1998 and is
headquartered in Houston, Texas.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 23-90763) on August
23, 2023. In the petition signed by James F. O'Neil III, chief
executive officer, the Debtor disclosed $24,185,668 in assets and
$225,850,276 in liabilities.
Judge David R. Jones oversees the case.
The Debtors tapped Haynes and Boone, LLP as legal counsel, Alvarez
and Marsal North America, LLC as restructuring advisor, Moelis and
Company as investment banker, and Donlin, Recano & Company, Inc. as
claims, noticing, solicitation and administrative agent.
Counsel to the Ad Hoc Group of Front Line Lenders are Davis Polk &
Wardwell LLP and Norton Rose Fulbright US LLP.
Counsel to the Front Line DIP Lenders is Davis Polk & Wardwell
LLP.
Counsel to Alter Domus (US) LLC, as Front Line DIP Agent and
Prepetition Front Line Agent, is Holland & Knight LLP.
Counsel to Streeterville Capital, LLC, as Prepetition Streeterville
Lender and Streeterville DIP Lender, is Brian M. Rothschild, Esq.
at Parsons Behle & Latimer.
Counsel to the Prepetition Promissory Note Holder is Kane Russell
Coleman Logan PC.
PEGASUS HOME: U.S. Trustee Slams $1M Express Payment for Bidder
---------------------------------------------------------------
Rick Archer of Law360 reports that the U.S. Trustee's Office is
asking a Delaware bankruptcy judge to reject pillow maker Pegasus
Home Fashions' request to offer its Chapter 11 stalking horse
bidder $1 million in expense reimbursement, calling it an
unnecessary obstacle to bidding.
About Pegasus Home Fashions
Pegasus Home Fashions Inc. manufactures house furnishing products.
The Company offers pillows, memory foam, quilts, bedspreads,
blankets, throws, sheet sets, pet beds, furniture protectors, and
mattress pads. Pegasus Home Fashions serves customers in the United
States.
Pegasus Home Fashions sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 23-11236) on August 24,
2023. In the petition filed by Timothy Boates, as chief executive
officer, the Debtor reports estimated assets and liabilities
between $100 million and $500 million each.
The Debtor is represented by Michael R. Nestor, Esq., at Young
Conaway Stargatt & Taylor.
PGX HOLDINGS: Unsecureds Get Share in Interest in Creditor Trust
----------------------------------------------------------------
Craig T. Goldblatt has entered an order approving PGX Holdings,
Inc., et al.'s Disclosure Statement on an interim basis as
providing Holders of Claims entitled to vote on the Plan with
adequate information to make an informed decision as to whether to
vote to accept or reject the Plan in accordance with sections 105
and 1125(a)(1) of the Bankruptcy Code and Bankruptcy Rule 3017.
The following dates are established (subject to modification as
necessary) with respect to solicitation of votes on the Plan and
Confirmation of the Plan (all times prevailing Eastern Time):
* The Claims Objection Deadline for Voting Purposes will be on
October 2, 2023, at 4:00 p.m. (prevailing Eastern Time).
* The Plan Supplement Filing Date will be on October 13, 2023.
* The Voting Deadline will be on October 20, 2023, at 4:00 p.m.
(prevailing Eastern Time).
* The Confirmation Objection Deadline will be on October 20, 2023,
at 4:00 p.m. (prevailing Eastern Time).
* The Filing Deadline for Voting Report, Confirmation Order, and
Confirmation Brief will be on October 24, 2023.
* The Confirmation Hearing will be on October 27, 2023, at 10:00
a.m. (prevailing Eastern Time).
First Amended Plan
PGX Holdings, Inc., et al. submitted a First Amended Joint Chapter
11 Plan.
"Creditor Trust" means a trust established by the Debtors for the
benefit of the Other GUC Claimants with the Creditor Trustee acting
as trustee thereof, the governing terms of which shall be
determined by the Committee, and which is funded with cash from the
Debtors' cash on hand in the amount of $100,000, and which shall
have the right to pursue the liquidation or monetization of the
Other Assets (including collecting amounts due under or realizing
upon the PIK Notes). The Creditor Trust shall also hold the PIK
Notes for distribution in accordance with the Plan.
"GUC Litigation Claims Settlement Cash" means cash in the amount of
$750,000.
Under the Plan, holders of Class 6B Allowed Other General Unsecured
Claim will receive its Pro Rata share of the beneficial interest in
the Creditor Trust and as beneficiary of the Creditor Trust will
receive, on a distribution date, their Pro Rata share of net Cash
derived from the Creditor Trust Assets available for distribution
on each such distribution date as provided under the Plan and
Creditor Trust Agreement, including:
(i) A portion of the GUC Litigation Claims Settlement Cash (as
allocated by the Committee in its sole discretion and to be
disclosed in the Plan Supplement);
(ii) the PIK Notes;
(iii) proceeds of Other Assets; and
(iv) the Excess Distributable Cash, if any (collectively, the
"Other General Unsecured Claim Proceeds");
provided that if Class 6C (Litigation Claims) is an accepting
Class, the Committee, in its sole discretion, may allocate to
Holders of such claims a portion of the GUC Litigation Claims
Settlement Cash to be disclosed in the Plan Supplement that would
otherwise have been distributed to Class 6B (Other General
Unsecured Claims).
Class 6B is impaired.
The Debtors and Wind-Down Debtor, as applicable, shall fund the
distributions and obligations under the Plan with Available Cash
from the Wind-Down Budget held in the Wind-Down Debtor Account, as
applicable, on the Effective Date. Sources to fund the
distributions and obligations under the Plan include cash from the
Creditor Trust in the amount of $100,000, from the GUC Trade
Settlement Cash in the amount of $3.25 million, and from the GUC
Litigation Claims Settlement Cash in the amount of $750,000 (of
which $50,000 will be paid to the Holder of the Allowed CFPB Claim
on account of the CFPB Claim as set forth in Article III). As
indicated in Article II, pursuant to the Sale Orders, the DIP
Claims have been satisfied in full in connection with the Sale
Transaction.
Co-Counsel to the Debtors and Debtors in Possession:
Domenic E. Pacitti, Esq.
Michael W. Yurkewicz, Esq.
KLEHR HARRISON HARVEY BRANZBURG LLP
919 North Market Street, Suite 1000
Wilmington, DE 19801
Telephone: (302) 426-1189
Facsimile: (302) 426-9193
E-mail: dpacitti@klehr.com
myurkewicz@klehr.com
- and -
Morton R. Branzburg, Esq.
1835 Market Street, Suite 1400
Philadelphia, PA 19103
Telephone: (215) 569-3007
Facsimile: (215) 568-6603
E-mail: mbranzburg@klehr.com
- and -
Joshua A. Sussberg, P.C.
KIRKLAND & ELLIS LLP
KIRKLAND & ELLIS INTERNATIONAL LLP
601 Lexington Ave.
New York, NY 10022
Telephone: (212) 446-4800
Facsimile: (212) 446-4900
E- mail: joshua.sussberg@kirkland.com
- and -
Spencer A. Winters, Esq.
Whitney C. Fogelberg, Esq.
Alison J. Wirtz, Esq.
300 North LaSalle
Chicago, IL 60654
Telephone: (312) 862-2000
Facsimile: (312) 862-2200
E-mail: spencer.winters@kirkland.com
whitney.fogelberg@kirkland.com
alison.wirtz@kirkland.com
A copy of the Order dated September 16, 2023, is available at
https://tinyurl.ph/TbZVC from PacerMonitor.com.
A copy of the Plan dated September 20, 2023, is available at
https://tinyurl.ph/kvdsi from PacerMonitor.com
About PGX Holdings
PGX Holdings, Inc. and affiliates are credit repair service
providers, helping customers repair their credit and achieve their
credit goals. PGX Holdings help consumers access and understand the
information contained in their credit reports, ensure that the
information contained in those reports is fair, accurate, and
complete, and address other factors that may negatively impact
their credit scores.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Lead Case No. 23-10718) on June 4,
2023. In the petition signed by Chad Wallace, chief executive
officer and president, the Debtor disclosed up to $500 million in
assets and up to $10 billion in liabilities.
Judge Craig T. Goldblatt oversees the case.
Kirkland and Ellis LLP, Kirkland and Ellis International LLP, and
300 North LaSalle represents the Debtor as bankruptcy counsel.
The Debtors also tapped Klehr Harrison Harvey Branzburg LLP as
local bankruptcy counsel, Alvarez & Marsal North America, LLC as
financial advisor, Greenhill and Co., LLC as investment banker,
Kurtzman Carson Consultants LLC as notice and claims agent, and
Landis Rath and Cobb as conflicts counsel.
King & Spalding, LLP, and Morris, Nichols, Arsht & Tunnell LLP,
serve as counsel to Blue Torch Finance LLC, as DIP Agent and
Prepetition First Lien Agent, and the Prepetition First Lien
Lenders. Clyde & Co US LLP, serves as special counsel to the DIP
Agent, the Prepetition First Lien Agent, and the Prepetition First
Lien Lenders.
Proskauer Rose LLP, is counsel to Prospect Capital Corporation, in
its capacity as DIP Lender and lender under the Prepetition First
Lien Credit Agreement. Morris, Nichols, Arsht & Tunnell LLP, is
local counsel to Prospect Capital.
POSEIDON INVESTMENT: S&P Downgrades ICR to 'SD' on Restructuring
----------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Poseidon
Investment Intermediate L.P. (d/b/a Pretium Packaging LLC) to 'SD'
(selective default) from 'CCC+' and first-lien term loan rating to
'D' (default) from 'CCC+'.
S&P expects to review its issuer credit rating on the company upon
the close of the exchange transaction and rate the company under
its new capital structure.
The downgrade follows Poseidon's announcement of an agreement with
lenders to exchange first-lien debt. On Oct. 2, 2023, Poseidon
announced it had reached an agreement with the majority of its $1.3
billion first-lien lenders for a transaction that includes new debt
financing and an exchange of the existing first-lien debt. S&P
said, "We view this transaction as tantamount to selective default
because we expect lenders would receive less than originally
promised. We understand the asset-based lending (ABL) and
second-lien term loan are not a part of this transaction and expect
Poseidon to continue meeting those obligations. We expect to review
our issuer credit rating on the company following the close of the
transaction, which we believe will be by the end of October, and
rate the company under its new capital structure."
PRIME CORE: Hires Galaxy Digital Partners as Investment Banker
--------------------------------------------------------------
Prime Core Technologies Inc. and its affiliates seek approval from
the U.S. Bankruptcy Court for the District of Delaware to employ
Galaxy Digital Partners LLC as investment banker.
The firm will provide these services:
a. review the Debtors' financial condition and outlook and
assist in analyzing the range of options available to the Debtors;
b. assist in the development of financial data, analysis and
presentations, including, for the avoidance of doubt, an informal
valuation of the Debtors to gauge the Debtors' current or future
worth;
c. analyze the Debtors' financial liquidity and evaluate
alternatives to improve such liquidity;
d. evaluate the Debtors' debt capacity, if any, and
alternative capital structures;
e. participate in negotiations among the Debtors and their
vendors, creditors, suppliers, lessors and other interested
parties;
f. advise the Debtors and negotiate with lenders with respect
to potential waivers or amendments of any credit facilities;
g. provide such other advisory services as are customarily
provided in connection with the analysis and negotiation of any of
the transactions contemplated by the Engagement Letter;
h. analyze various Restructuring scenarios and the potential
impact of these scenarios on the value of the Debtors and the
recoveries of those stakeholders impacted by the Restructuring;
i. provide strategic advice with regard to restructuring or
refinancing the Debtors' obligations;
j. provide financial advice and assistance to the Debtors in
developing a Restructuring and asset monetization process;
k. provide financial advice and assistance to the Debtors in
structuring any new securities to be issued under a Restructuring;
l. assist the Debtors and participate in negotiations with
entities or groups affected by the Restructuring;
m. provide financial advice to the Debtors in structuring and
effecting a Financing, identify potential Investors, and contact
and solicit such Investors;
n. assist in the arranging of a Financing, including
identifying potential sources of capital, assisting in the due
diligence process, and negotiating the terms of any proposed
Financing, as requested;
o. provide financial advice to the Debtors in structuring,
evaluating and effecting a Sale, including a monetization of
individual or multiple assets, identify potential acquirers, and
contact and solicit potential acquirers; and
p. assist in the arranging and executing of a Sale, including
identifying potential buyers or parties in interest, assisting in
the due diligence process and marketing process, and negotiating
the terms of any proposed Sale.
The firm will be paid at these rates:
a. Monthly Restructuring Fee. The Debtors will pay Galaxy a
nonrefundable cash fee of $25,000 per month for the first three
months of the Chapter 11 Cases and $100,000 per month thereafter
(each, a "Monthly Restructuring Fee").
b. Transaction Fee. If a Sale or Restructuring is consummated,
the Debtors will pay Galaxy a one-time cash fee (a "Transaction
Fee") equal to $5% of the Transaction value.
c. Financing Fee. If a Financing is consummated, the Debtors
will pay Galaxy a fee in the amount equal to (a) 7 percent of all
gross proceeds from the issuance of any Instruments sold to New
Investors in the Financing and (b) 4 percent of all gross proceeds
from the issuance of any Instruments sold to Existing Investors in
the Financing.
d. Minimum Fee. Notwithstanding any other provision of the
Engagement Letter or any other agreement or understanding between
the Debtors and Galaxy, in the event of either a liquidation or a
restructuring of the Debtors, the Debtors agree and undertake to
pay Galaxy a fee no less than $2 million (the "Minimum Fee").
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Michael Ashe, a partner at Galaxy Digital Partners LLC, disclosed
in a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Michael Ashe
Galaxy Digital Partners LLC
300 Vesey Street
New York, NY 10282
Tel: (212) 390-9216
About Prime Core Technologies Inc.
Prime Core Technologies, Inc. and three of its affiliates sought
Chapter 11 bankruptcy protection (Bankr. D.N.J. Lead Case No.
23-11161) on Aug. 16, 2023. The petitions were signed by Jor Law as
interim chief executive officer. The Hon. J. Kate Stickle presides
over the Debtors' cases.
The Debtors listed $50 million to $100 million in estimated assets
and $100 million to $500 million estimated liabilities.
McDermott Will & Emery LLP serves as counsel to the Debtors. The
Debtors' financial advisor is M3 Advisory Partners, LP; their
investment banker is Galaxy Digital Partners LLC; and their claims
and noticing agent is Stretto.
PRIME CORE: Hires M3 Advisory Partners LP as Financial Advisor
--------------------------------------------------------------
Prime Core Technologies Inc. and its affiliates seek approval from
the U.S. Bankruptcy Court for the District of Delaware to employ M3
Advisory Partners, LP as financial advisor.
The firm will provide these services:
a. assist the Debtors in the development and administration of
its short-termbcash flow forecasting and related methodologies, as
well as its cash management planning;
b. provide such assistance as reasonably may be required by
management of the Debtors in connection with (i) development of its
business plan, (ii) any restructuring plans and strategic
alternatives intended to maximize enterprise value, and (iii) any
related forecasts that may be required by creditor constituencies
in connection with negotiations or by the Debtors for other
corporate purposes;
c. assist the professionals who are representing the Debtors
in the reorganization process or who are working for the Debtors'
various stakeholders to coordinate their effort and individual work
product to be consistent with the Debtors' overall restructuring
goals;
d. assist, if required, the Debtors in communications and
negotiations with their outside constituents, including creditors,
trade vendors and their respective advisors;
e. assist the Debtors in obtaining and presenting such
information as may be required by the parties in interest to the
Chapter 11 Cases and bankruptcy processes that may be initiated by
the Debtors, including any creditors' committees and the bankruptcy
court;
f. provide such other services as are reasonable and customary
for a financial advisor in connection with the administration and
prosecution of a bankruptcy proceeding of this nature, including
assisting the Debtor's counsel and other advisors with respect to
investigations and litigation matters;
g. provide such other Services as are described in the
Engagement Letter; and
h. provide such additional services as M3 and the Debtors
shall otherwise agree in writing.
The firm will be paid at these rates:
Managing Partner $1,350 per hour
Senior Managing Director $1,245 per hour
Managing Director $1,025 to $1,150 per hour
Director $840 to $945 per hour
Vice President $750 per hour
Senior Associate $650 per hour
Associate $550 per hour
Analyst $450 per hour
The firm received an initial retainer in the amount of $500,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Robert Winning, managing drector at M3 Advisory Partners, LP,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Robert Winning
M3 Advisory Partners, LP
1700 Broadway, 19th Floor
New York, NY 10019
Telephone: (212) 202-2226
Email: rwinning@m3-partners.com
About Prime Core Technologies Inc.
Prime Core Technologies, Inc. and three of its affiliates sought
Chapter 11 bankruptcy protection (Bankr. D.N.J. Lead Case No.
23-11161) on Aug. 16, 2023. The petitions were signed by Jor Law as
interim chief executive officer. The Hon. J. Kate Stickle presides
over the Debtors' cases.
The Debtors listed $50 million to $100 million in estimated assets
and $100 million to $500 million estimated liabilities.
McDermott Will & Emery LLP serves as counsel to the Debtors. The
Debtors' financial advisor is M3 Advisory Partners, LP; their
investment banker is Galaxy Digital Partners LLC; and their claims
and noticing agent is Stretto.
PRIME CORE: Hires Stretto Inc. as Administrative Agent
------------------------------------------------------
Prime Core Technologies Inc. and its affiliates seek approval from
the U.S. Bankruptcy Court for the District of Delaware to employ
Stretto, Inc. as administrative agent.
The firm will provide these services:
a. assist with, among other things, solicitation, balloting,
and tabulation of votes; prepare any related reports, as required
in support of confirmation of a chapter 11 plan;
b. prepare an official ballot certification and, if necessary,
testify in support of the ballot tabulation results;
c. assist with the preparation of the Debtors' schedules of
assets and liabilities and statements of financial affairs, and
gather data in conjunction therewith;
d. provide a confidential data room;
e. manage and coordinate any distributions pursuant to a
chapter 11 plan, if designated as distribution agent under such
plan; and
f. provide such other solicitation, balloting and other
administrative services described in the Engagement Agreement, but
not included in the Section 156(c) Application, as may be requested
from time to time by the Debtors, the Court or the Office of the
Clerk of the Court.
The firm received an advanced retainer in the amount of $25,000.
Sheryl Betance, a partner at Stretto, Inc., disclosed in a court
filing that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Sheryl Betance
Stretto, Inc.
410 Exchange, Ste. 100
Irvine, CA 92602
Tel: (714) 716-1872
Email: sheryl.betance@stretto.com
About Prime Core Technologies Inc.
Prime Core Technologies, Inc. and three of its affiliates sought
Chapter 11 bankruptcy protection (Bankr. D.N.J. Lead Case No.
23-11161) on Aug. 16, 2023. The petitions were signed by Jor Law as
interim chief executive officer. The Hon. J. Kate Stickle presides
over the Debtors' cases.
The Debtors listed $50 million to $100 million in estimated assets
and $100 million to $500 million estimated liabilities.
McDermott Will & Emery LLP serves as counsel to the Debtors. The
Debtors' financial advisor is M3 Advisory Partners, LP; their
investment banker is Galaxy Digital Partners LLC; and their claims
and noticing agent is Stretto.
PRIME CORE: Seeks to Hire Mcdermott Will & Emery as Counsel
-----------------------------------------------------------
Prime Core Technologies Inc. and its affiliates seek approval from
the U.S. Bankruptcy Court for the District of Delaware to employ
Mcdermott Will & Emery LLP as counsel.
The firm's services include:
a. advising the Debtors with respect to their powers and
duties as debtors in possession in the continued management and
operation of their business and properties;
b. advising and consulting on the conduct of these Chapter 11
Cases, including all of the legal and administrative requirements
of operating in chapter 11;
c. attending meetings and negotiating with representatives of
the Debtors' creditors and other parties in interest;
d. taking all necessary actions to protect and preserve the
Debtors' estates, including prosecuting actions on the Debtors'
behalf, defending any action commenced against the Debtors, and
representing the Debtors in negotiations concerning litigation in
which the Debtors are involved, including objections to claims
filed against the Debtors' estates;
e. preparing pleadings in connection with these Chapter 11
Cases, including motions, applications, answers, orders, reports,
and papers necessary or otherwise beneficial to the administration
of the Debtors' estates;
f. advising the Debtors in connection with any potential sale
of assets;
g. appearing before the Court and any appellate courts to
represent the interests of the Debtors' estates;
h. advising the Debtors regarding tax matters;
i. advising the Debtors regarding insurance and regulatory
matters;
j. taking any necessary action on behalf of the Debtors to
negotiate, prepare, and obtain approval of a disclosure statement
and confirmation of a chapter 11 plan and all documents related
thereto; and
k. performing all other necessary legal services for the
Debtors in connection with the prosecution of these Chapter 11
Cases, including: (i) analyzing the Debtors' leases and contracts
and the assumption and assignment or rejection thereof; (ii)
analyzing the validity of liens against the Debtors; and (iii)
advising the Debtors on corporate and litigation matters.
The firm will be paid at these rates:
Partners $1,170-$2,330
Senior Counsel $895-$1,820
Employee Counsel $900-$1,685
Associates $655-$1,125
Paraprofessionals $240-$675
The Debtors paid the firm a retainer in the amount of $1,000,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
In accordance with Appendix B-Guidelines for Reviewing Applications
for Compensation and Reimbursement of Expenses Filed under 11
U.S.C. Sec. 330 for Attorneys in Larger Chapter 11 Cases, the
following is provided in response to the request for additional
information:
Question: Did you agree to any variations from, or
alternatives to, your standard or customary billing
arrangements for this engagement?
Response: No.
Question: Do any of the professionals included in this
engagement vary their rate based on the geographic
location of the bankruptcy case?
Response: No.
Question: If you represented the client in the 12 months
prepetition, disclose your billing rates and
material financial terms for the prepetition
engagement, including any adjustments during the 12
months prepetition. If your billing rates and
material financial terms have changed postpetition,
explain the difference and the reasons for the
difference.
Response: McDermott's current hourly rates for matters
related to these Chapter 11 Cases range as follows:
Partners $1,170-$2,330; Senior Counsel $895-
$1,820; Employee Counsel $900-$1,685; Associates
$655-$1,125; Paraprofessionals $240-$675.
Question: Has your client approved your prospective budget
and staffing plan, and, if so for what budget
period?
Response: McDermott and the Debtors have developed a 13-week
cash flow forecast and budget for these Chapter 11
Cases, which involved consideration of McDermott's
staffing plans and estimated professional fees to
be incurred in connection with the forecast.
Darren Azman, Esq., a partner at Mcdermott Will & Emery LLP,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Darren Azman, Esq.
Joseph B. Evans, Esq.
MCDERMOTT WILL & EMERY LLP
One Vanderbilt Avenue
New York, NY 10017-3852
Tel: (212) 547-5400
Fax: (212) 547-5444
Email: dazman@mwe.com
jbevans@mwe.com
About Prime Core
Prime Core Technologies, Inc. and three of its affiliates sought
Chapter 11 bankruptcy protection (Bankr. D.N.J. Lead Case No.
23-11161) on Aug. 16, 2023. The petitions were signed by Jor Law as
interim chief executive officer. The Hon. J. Kate Stickle presides
over the Debtors' cases.
The Debtors listed $50 million to $100 million in estimated assets
and $100 million to $500 million estimated liabilities.
McDermott Will & Emery LLP serves as counsel to the Debtors. The
Debtors' financial advisor is M3 Advisory Partners, LP; their
investment banker is Galaxy Digital Partners LLC; and their claims
and noticing agent is Stretto.
PRIZE MANAGEMENT: Hires Stevens Martin Vaughn & Tadych as Counsel
-----------------------------------------------------------------
Prize Management, LLC seeks approval from the U.S. Bankruptcy Court
for the Eastern District of North Carolina to employ Stevens Martin
Vaughn & Tadych, PLLC as counsel.
The firm will provide these services: [ed]
a. prepare on behalf of Debtor necessary applications,
complaints, answers, orders, reports, motions, notices, plan of
reorganization, disclosure statement, and other papers necessary to
Debtor's reorganization case.
b. perform all necessary legal services in connection with the
Debtor's reorganization, including Court appearances, research,
opinions and consultations on reorganization options, direction,
and strategy; and
c. perform all other legal services for Debtor which may be
necessary in this Chapter 11 case.
The firm will be paid at these rates:
William P. Janvier $540 per hour
Kathleen O'Malley $340 per hour
Law clerks and paralegals $165 per hour
The firm will be paid a retainer in the amount of $20,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Stevens Martin, Esq., a partner at Vaughn & Tadych, PLLC, disclosed
in a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Stevens Martin, Esq.
VAUGHN & TADYCH, PLLC
2225 W. Millbrook Road,
Raleigh, NC 27612
Tel.: (919) 582-2300
Email: komalley@smvt.com
About Prize Management, LLC
Prize Management, LLC is a sand and gravel mining company which
operates on the land owned by Sand Ridge Development Assn., Inc.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. N.C. Case No. 23-02681) on September
14, 2023. In the petition signed by Alton Williams, Jr., president,
the Debtor disclosed up to $10 million in assets and up to $50
million in liabilities.
Judge Pamela W. McAffee oversees the case.
William P. Janvier, Esq., at Stevens Martin Vaugh & Tadych, PLLC,
represents the Debtor as legal counsel.
PRIZE MGT LLC: Starts Chapter 11 Bankruptcy Protection
------------------------------------------------------
Prize Management LLC dba SandRidge Materials filed for chapter 11
protection in the Eastern District of North Carolina. According to
court filing, the Debtor listed up to $50 million in debt owed to 1
and 49 creditors. The Petition states funds will not be available
to Unsecured Creditors.
About Prize Management
Prize Management, LLC, is a sand and gravel mining company which
operates on the land owned by Sand Ridge Development Assn., Inc.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. N.C. Case No. 23-02681) on Sept. 14,
2023. In the petition signed by Alton Williams, Jr., president,
the Debtor disclosed up to $10 million in assets and up to $50
million in liabilities.
William P. Janvier, Esq., at Stevens Martin Vaugh & Tadych, PLLC,
is the Debtor's legal counsel.
QUICK DRY: Seeks to Hire Innovative Accounting as Bookkeeper
------------------------------------------------------------
Quick Dry Carpet Cleaning, LLC dba Quick Dry Restoration seeks
approval from the U.S. Bankruptcy Court for the Western District of
Texas to employ Innovative Accounting, PLLC as bookkeeper.
The firm will provide services related to bookkeeping for
bankruptcy and non-bankruptcy obligations.
The firm will be paid at these rates:
CPA $150 per hour
Senior Accountant $75 per hour
Accountant $50 per hour
Bookkeeper $40 per hour
Administrator $25 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Bethany Galguera, a partner at Innovative Accounting, disclosed in
a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Bethany Galguera
Innovative Accounting, PLLC
710 East Main Street,
Lexington, KY 40502
Tel: (859) 757-0535
Email: bethany@innovativeacct.com
About Quick Dry Carpet Cleaning, LLC
Quick Dry Carpet Cleaning LLC is a full-service restoration company
in Austin, Texas, serving residential or commercial clients.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Tex. Case No. 23-10638) on August 16,
2023.
In the petition signed by Penny Lane, president & manager, the
Debtor disclosed $10 million in both assets and liabilities.
Todd Headden, Esq., at Hayward PLLC, represents the Debtor as legal
counsel.
RIZOV CORP: Voluntary Chapter 11 Case Summary
---------------------------------------------
Debtor: Rizov Corp.
5000 Carriageway Dr., #107
Rolling Meadows, IL 60008
Chapter 11 Petition Date: October 5, 2023
Court: United States Bankruptcy Court
Northern District of Illinois
Case No.: 23-13345
Debtor's Counsel: Saulius Modestas, Esq.
MODESTAS LAW OFFICES, P.C.
401 S. Frontage Rd.
Ste. C
Burr Ridge, IL 60527-7115
Tel: 312-251-4460
Fax: 312-277-2586
Email: smodestas@modestaslaw.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Rade Rizov as president.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/KNGWINQ/Rizov_Corp__ilnbke-23-13345__0001.0.pdf?mcid=tGE4TAMA
S&G HOSPITALITY: Taps Contemporary Business Solutions as Accountant
-------------------------------------------------------------------
S&G Hospitality, Inc. and its affiliates seek approval from the
U.S. Bankruptcy Court for the Southern District of Ohio to employ
Contemporary Business Solutions, Inc. as accountant.
The Debtors require an accountant to:
(a) assist the Debtors with preparation of tax returns;
(b) assist the Debtors with prepared financial statements;
and
(c) assist the Debtors in preparation of monthly prepared
operating reports or other prepared financial reporting required by
the bankruptcy court.
Steven Covert, CPA, the primary accountant in this engagement, will
be paid at his standard hourly rate of $150.
Mr. Covert disclosed in a court filing that the firm is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
Steven J. Covert, CPA
Contemporary Business Solutions, Inc.
3791 Attucks Drive
Powell, OH 43065
Telephone: (614) 846-3600
Facsimile: (614) 255-5675
Email: scovert@cbscpa.com
About S&G Hospitality
S&G Hospitality, Inc. is part of the traveler accommodation
industry.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Ohio Case No. 23-52859) on August 18,
2023. In the petition signed by AbijitVasani, president, the Debtor
disclosed up to $10 million in assets and up to $1 million in
liabilities.
Judge Mina NamiKhorrami oversees the case.
The Debtor tapped David Beck, Esq., at Carpenter Lipps LLP as legal
counsel and Contemporary Business Solutions, Inc. as accountant.
SAND RIDGE: Hires Stevens Martin Vaughn & Tadych as Counsel
-----------------------------------------------------------
Sand Ridge Development Assn., Inc., seeks approval from the U.S.
Bankruptcy Court for the Eastern District of North Carolina to
employ Stevens Martin Vaughn & Tadych, PLLC as counsel.
The firm will provide these services:
a. prepare on behalf of Debtor necessary applications,
complaints, answers, order, reports, motions, notices, plan of
reorganization, disclosure statement, and other papers necessary to
Debtor's reorganization case;
b. perform all necessary legal services in connection with the
Debtor's reorganization, including Court appearance, research,
opinions and consultations on reorganization options, direction,
and strategy; and
c. perform all other legal services for Debtor which may be
necessary in this Chapter 11 case.
The firm will be paid at these rates:
William P. Janvier $540 per hour
Kathleen O'Malley $340 per hour
Law clerks and paralegals $165 per hour
The firm will be paid a retainer in the amount of $20,000.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Stevens Martin, Esquire at Vaughn & Tadych, PLLC, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Stevens Martin, Esq.
VAUGHN & TADYCH, PLLC
2225 W. Millbrook Road,
Raleigh, NC 27612
Tel.: (919) 582-2300
Email: komalley@smvt.com
About Sand Ridge Development Assn., Inc.,
Sand Ridge Development Assn., Inc. in Rich Square, NC, filed its
voluntary petition for Chapter 11 protection (Bankr. E.D.N.C. Case
No. 23-02678) on September 14, 2023, listing $10 million to $50
million in assets and $1 million to $10 million in liabilities.
Alton Williams, Jr. as president, signed the petition.
Judge David M. Warren oversees the case.
STEVENS MARTIN VAUGHN & TADYCH, PLLC serve as the Debtor's legal
counsel.
SCHIERHOLZ AND ASSOCIATES: Amends Unsecured Claims Pay Details
--------------------------------------------------------------
Schierholz and Associates, Inc., submitted a Second Amended
Subchapter V Plan of Reorganization dated September 28, 2023.
Under this Plan, the reorganized Debtor will continue to operate
the MHC after the effective date for a maximum of five years.
Discretionary improvements to the Debtor's improvements to the
Debtor's infrastructure will be funded by operating revenue,
debtor-in-possession financing, and/or grants.
Debtor's defense of the AG Lawsuit will be funded by operating
revenue and debtor-in-possession financing. Debtor estimates that
its litigation budget for the discovery phase of the AG Lawsuit is
approximately $250,000.00 and its litigation budget for the trial
phase of the AG Lawsuit will be approximately $170,000.00 for a
total of $420,000.00.
Thus, Debtor estimates that the amount it will need to borrow to
fund its defense of the AG Lawsuit will be less than $500,000,
leaving it an additional $500,000 in financing available for other
plan expenses such as a segregated account of tenant deposits and
professional expenses. At the reorganized Debtor's discretion, but
after the AG Litigation is concluded and before the fifth
anniversary of the effective date, the reorganized Debtor's
remaining assets shall be sold. The Priority Claims of tenants of
the MHC shall be paid or treated in accordance with any
pre-petition contracts or leases with such individuals.
Administrative Claims shall be paid in full.
Allowed Unsecured Claims shall be paid in one of two ways. Under
the first option, if the Plan is approved as a consensual Plan, the
Abatement Action and the AG Lawsuit will be held in abeyance
pending effectuation of the Plan. Until the sale is effectuated,
the reorganized Debtor shall operate its business in the ordinary
course but no payments shall be made to Paul Schierholz or any of
his affiliated entities until substantially all the remaining
assets of the reorganized Debtor are sold. The reorganized Debtor
will sell its remaining assets, including the MHC, on or before the
fifth anniversary of the effective date.
Northcountry Cooperative Foundation of St. Paul, Minnesota will
have right of first refusal to purchase the reorganized Debtor's
remaining assets. The Sale Proceeds will be used to satisfy costs
of sale, any debtor-in-possession financing, and all other Allowed
Claims of a higher priority, with the residue to be distributed to
any Allowed Unsecured Claims on a pro-rata basis. In the event the
Sale Proceeds are sufficient to satisfy all costs of sale,
debtor-in-possession financing, and Allowed Claims in full, the
remaining funds would be distributed to Paul Schierholz on account
of his Interest in the reorganized Debtor. Under this scenario, the
State of Minnesota and City of Marshall would waive their claims,
dismiss the Abatement Action and the AG Lawsuit, and receive no
distributions under the Plan.
Under the second option, if the Plan is approved under Section
1191(b) of the Bankruptcy Code, the Debtor shall continue to
litigate the Abatement Action and the AG Lawsuit and intends to
object to the Claim of the State of Minnesota. Until the sale is
effectuated, the reorganized Debtor shall operate its business and
Paul Schierholz or an affiliated entity shall be entitled to a
management fee of no more than 6% of gross revenue per month from
the MHC until substantially all the remaining assets of the
reorganized Debtor are sold.
The reorganized Debtor will sell its remaining assets, including
the MHC, after the conclusion of the AG Lawsuit and on or before
the fifth anniversary of the effective date. The Sale Proceeds will
be used to satisfy costs of sale, any debtor-in-possession
financing, and all other Allowed Claims of a higher priority, with
the residue to be distributed to any Allowed Unsecured Claims on a
pro-rata basis. In the event the Sale Proceeds are sufficient to
satisfy all costs of sale, debtor-in-possession financing, and
Allowed Claims in full, the remaining funds would be distributed to
Paul Schierholz on account of his Interest in the reorganized
Debtor. Under this scenario, the amount and validity of the Claims
of the State of Minnesota and the City of Marshall would be treated
in accordance with the determinations of the Minnesota State Court
and/or Bankruptcy Court.
The Debtor shall be empowered to take such action as may be
necessary to perform its obligations under this Plan.
On the Effective Date of the Plan, Paul Schierholz shall serve as
the agent pursuant to Section 1142(b) of the Bankruptcy Code for
the purpose of carrying out the terms of the Plan, and taking all
actions deemed necessary or convenient to consummating the terms of
the Plans, including, but not limited to, executing documents.
A full-text copy of the Second Amended Plan dated September 28,
2023 is available at https://urlcurt.com/u?l=NoPnJY from
PacerMonitor.com at no charge.
Attorneys for Debtor:
David J. Warner, Esq.
Wadsworth Garber Warner Conrardy, PC
2580 West Main Street, Suite 200
Littleton, CO 80120
Telephone: (303) 296-1999
Facsimile: (303) 296-7600
Email: dwarner@wgwc-law.com
About Schierholz and Associates
Schierholz and Associates, Inc., owns and operates the Broadmoor
Valley Manufactured Housing Community, rents and sells used and new
manufactured homes, and operates or leases 20.79 acres of
farmland.
Schierholz and Associates filed a Chapter 11 bankruptcy petition
(Bankr. D. Colo. Case No. 23-10183) on Jan. 18, 2013. Judge Thomas
B. Mcnamara oversees the case. The Debtor tapped David J. Warner,
Esq., at Wadsworth Garber Warner Conrardy, PC, as legal counsel.
SCUNGIO BORST: Unsecureds to Get Remaining SBA Plan Trust Assets
----------------------------------------------------------------
Scungio Borst & Associates, LLC and the Official Committee of
Unsecured Creditors of the estate of the debtor submitted a
Disclosure Statement with respect to the Joint Plan of Liquidation.
The Debtor ceased operations prior to the filing of the Chapter 11
Case, and thereafter has been in the process of liquidating its
assets for the benefit of its Estate and Creditors. The proceeds
from the liquidated Assets have been deposited into the Debtor's
DIP accounts. The Plan provides for the continued orderly
liquidation of the Debtor's Assets which will be transferred and
vest upon the occurrence of the Effective Date in the SBA Plan
Trust. Thereafter, the SBA Plan Trust Administrator shall
administer and liquidate the SBA Plan Trust Assets and distribute
the proceeds therefrom to holders of Allowed Claims under the Plan.
Except for the Professional Fee Reserve that will be utilized to
pay the Allowed Professional Fee Claims, the Debtor's other Assets
shall be assigned to and vest in the SBA Plan Trust free and clear
of liens, claims and encumbrances, and the proceeds from the
liquidation of the SBA Plan Trust Assets shall be distributed by
the SBA Plan Administrator to holders of Allowed Claims under the
Plan in accordance with the priorities and provisions of the Plan.
From and after the Effective Date, the SBA Plan Trust Administrator
shall be deemed the judicial substitute for the Debtor as the party
in interest in the Chapter 11 Case and/or any judicial proceeding
or appeal to which the Debtor is a part. The Plan provides that the
SBA Plan Trust Administrator will prosecute the Causes of Action,
including Avoidance Actions, except that the KPG-MCG Litigation
shall be administered by the management of the Debtor. The SBA Plan
Trust Administrator shall distribute the funds in the SBA Plan
Trust pursuant to the terms of the Plan to pay: first, Allowed
Administrative Claims (which shall include Professional Fee Claims
in the event that the funds in Professional Fee Reserve are
insufficient to satisfy the Allowed Professional Fee Claims in
full), second, Allowed Priority Non-Tax Claims, third, Allowed
Priority Tax Claims, fourth, the payment of all costs and expenses
of the SBA Plan Trust and, fifth, the remaining proceeds shall be
distributed on a pro rata basis to holders of Allowed General
Unsecured Claims.
The Plan Proponents believe that there are no valid Secured Claims,
and estimates the Allowed Priority Non-Tax Claims to be
approximately $12,500, and the Priority Tax Claims at zero. To the
extent that any Claim filed before the Bar Date (other than
approximately $12,500 of Priority Claims) has been designated as
"Secured" or "Priority" Claims, the Debtor will file an objection
to reclassify all such "Secured" and "Priority" Claims to General
Unsecured Claims. The Bankruptcy Court's Claims Register reflects
total Claims filed in the amount of approximately $21,000,000. No
Distributions shall be made under the Plan to any holder of
Interests in the Debtor, and all such Interests shall be cancelled
and extinguished as of the Effective Date.
Under the Plan, Class 2 General Unsecured Claims are impaired. As
soon as reasonably practicable after the Effective Date, (a) after
full payment of Allowed Administrative Expense Claims including the
Professional Fee Claims, (b) after full payment of Allowed Class 1
Priority Non-Tax Claims, and Priority Tax Claims, and (c) after
full payment of all the professional fees and expenses incurred by
the SBA Plan Trust, including the fees and expenses of SBA Plan
Administrator, the SBA Plan Trust Administrator in accordance with
the Plan and the SBA Plan Trust Agreement will Distribute the
remaining SBA Plan Trust Assets on a Pro-Rata basis to holders of
Allowed Class 2 Claims, as and when funds are available for such
purpose. After all of the SBA Plan Trust Assets have been fully
liquidated or abandoned, and the proceeds distributed in accordance
with the Plan and SBA Plan Trust Agreement, the SBA Plan Trust will
be closed.
No interest will be paid on account of Class 2 Claims. No portion
of any Class 2 Claim shall be Allowed to the extent that it is for
post-Petition interest or other similar post-Petition charges. Any
Allowed Class 2 Claim as to which insurance coverage exists shall
not receive a distribution hereunder but shall be paid exclusively
as provided under the applicable policy or policies of insurance.
On the Effective Date, the SBA Plan Trust shall be formed pursuant
to the Plan and the SBA Plan Trust Agreement. Except for the
Professional Fee Reserve, all other Assets of the Debtor, including
Causes of Action, Avoidance Actions and the 418 Federal Receivable,
shall be assigned to and vest in the SBA Plan Trust free and clear
of Liens, Claims and Encumbrances, subject to the provisions of the
Plan. Except as set forth in Article VIII.§8.3 of the Plan with
respect to the KPG-MCG Litigation, the SBA Plan Trust Administrator
shall administer the Assets in possession of the Debtor's estate
from and after the Effective Date and the SBA Plan Trust
Administrator shall be deemed the judicial substitute for the
Debtor as the party-in-interest in the Chapter 11 Case or any
judicial proceeding or appeal to which the Debtor is a party,
consistent with 1123(b)(3)(B) of the Bankruptcy Code. Distributions
from the SBA Plan Trust Assets shall be made as set forth in the
Plan and the SBA Plan Trust Agreement.
Upon the occurrence of the Effective Date, except for the
Professional Fee Reserve, all of the other Assets under the control
or possession of the Debtor shall be transferred to the SBA Plan
Trust, free and clear of all Claims, Interests or Encumbrances
subject to the provisions of the Plan. The Professional Fee Reserve
shall be utilized by the Disbursing Agent4 to fund payment of the
Allowed Professional Fee Claims incurred through the Effective Date
of the Plan (except for any Allowed Professional Fees of B&L which
shall be paid from the recovery of the KPG-MCG Litigation). The net
proceeds of any recovery (after payment of the Allowed Professional
Fee Claims of B&L and any other Allowed expenses incurred with
respect to the KPG-MCG Litigation) from the KPG-MCG Litigation, or
a KPG-MCG Settlement, or a DAS Settlement, shall be paid by the
Debtor to the SBA Plan Trust. The funds to effect the payments
under the Plan will be generated from (i) the Debtor's Cash, (ii)
the proceeds from the liquidation of the Debtor's Assets and (iii)
any other funds that may be received by the Debtor or its Estate
after the Effective Date and subsequently turned over to the SBA
Plan Trust.
Attorneys for the Debtor:
Aris J. Karalis, Esq.
Robert W. Seitzer, Esq.
Robert M. Greenbaum, Esq.
KARALIS PC
1900 Spruce Street
Philadelphia, PA 19103
Tel: (215) 546-4500
Attorneys for the Official Committee of Unsecured Creditors:
Edmond M. George, Esq.
Michael D. Vagnoni. Esq.
OBERMAYER REBMANN MAXWELL AND HIPPEL
Centre Square West, 1500 Market Street, Suite 3400
Philadelphia PA 19102
Tel: (215) 665-3140
A copy of the Disclosure Statement dated September 20, 2023, is
available at https://tinyurl.ph/mNhYr from PacerMonitor.com.
About Scungio Borst & Associates
Scungio Borst & Associates, LLC is a worldwide construction
services firm specializing in general construction, consulting and
project management. It is based in Camden, N.J.
Scungio Borst & Associates filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Penn. Case No.
22-10609) on March 11, 2022, with $10 million to $50 million in
both assets and liabilities. Judge Ashely M. Chan oversees the
case.
The Debtor tapped Karalis, PC, led by Aris J. Karalis, Esq., as
legal counsel; MillerSearles, LLC as tax services provider; and
Harlyn Consulting, LLC as financial support consultant.
SDPBC ACQUISITION: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: SDPBC Acquisition LP
DBA Pemcor Packaging
DBA San Diego Paper Box
5234 Cushman Place, Suite 100
San Diego, CA 92110
Case No.: 23-03065
Business Description: The Debtor provides optimized design and
manufacturing of retail and specialty
packaging. Its capabilities include custom
print and finishes, as well as fulfillment
services providing box assembly, product
packaging, product storage, and kitting.
Chapter 11 Petition Date: October 5, 2023
Court: United States Bankruptcy Court
Southern District of California
Judge:
Debtor's Counsel: Kit James Gardner, Esq.
LAW OFFICES OF KIT J. GARDNER
501 W. Broadway, Suite 800
San Diego, CA 92101
Tel: 619-525-9900
Email: kgardner@gardnerlegal.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Paul E. Mayer as manager of SDPBC
Holdings LLC, General Partner of the Debtor.
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/ATZWPSY/SDPBC_Acquisition_LP__casbke-23-03065__0001.0.pdf?mcid=tGE4TAMA
SIGNIA LTD: Seeks Cash Collateral Access
----------------------------------------
Signia, Ltd. asks the U.S. Bankruptcy Court for the District of
Colorado for authority to use cash collateral and provide adequate
protection.
The Debtor requires the use of cash collateral to pay operating
expenses.
The bankruptcy filing follows losses in 4 out of the last five
years, and incurrence of significant debt in 2020 to acquire the
assets of a company focused on fundraising and providing contact
center services to non-profit organizations. Additional debts,
including the entry of an adverse judgment against the Debtor in
August, 2023 in an amount in excess of $2 million, exacerbated the
Debtor's financial problems.
On the Petition Date, the Debtor maintained five bank accounts at
JPMorgan Chase Bank with a total balance of approximately $4,274.
The Debtor is the process of opening one or more debtor in
possession accounts to hold the funds.
The Debtor contends that the funds in the Deposit Accounts on the
Petition Date are not "cash collateral" as that term is defined in
11 U.S.C. Section 363(a). This conclusion is based upon the
undisputed fact that the U.S Small Business Administration, the
Debtor's only secured creditor, did not maintain a perfected
interest in the Deposit Accounts on the Petition Date and the
Debtor's rights to the funds are superior to any unperfected
interests by operation of C.R.S. Section 4-9-317(2) (security
interest subordinate to rights to a person that becomes a lien
creditor before perfection) and 11 U.S.C. Section 544(a)(1) and (2)
(debtor has rights of hypothetical lien creditor as of the
bankruptcy filing).
To provide adequate protection for the Debtor's use of cash
collateral, the Debtor proposes the following:
a. the Debtor will provide a replacement lien on the proceeds of
all post-petition accounts to the extent that the use of the cash
collateral results in a decrease in the value of the collateral
pursuant to 11 U.S.C. Section 361(2);
b. the Debtor will maintain adequate insurance coverage on all
personal property assets and adequately insure against any
potential loss;
c. the Debtor will provide periodic reports and information filed
with the Bankruptcy Court, including debtor-in-possession reports;
d. the Debtor will only expend cash collateral pursuant to the
Budgets subject to reasonable fluctuation by no more than 15% for
each expense line item per month; and,
e. the Debtor will pay all post-petition taxes.
A copy of the motion is available at https://urlcurt.com/u?l=OZZhj0
from PacerMonitor.com.
About Signia, Ltd.
Signia, Ltd. is in the business of providing marketing and customer
services to targeted business and customer groups. The Debtor
provides both business-to-business and business-to-consumer sales
and marketing services, including outbound telephone calls. The
Debtor also uses its call centers (located in Greeley, Colorado and
Vienna, Virginia) to manage inbound customer service calls, as well
as outbound calls, to customers on behalf of third parties, to
follow up, perform satisfaction surveys, manage customer relations,
conduct sales, perform fulfillment services, to ultimately help
third parties retain customers. Another line of business is in the
nonprofit sector: the Debtor provides telefundraising services for
a variety of well-known non-profit organizations.
The Debtor sought protection under Chapter 11 of the U.S Bankruptcy
Code (Bankr. D. Ga. Case No. 23-14384-TBM) on September 27, 2023.
In the petition signed by Jeffrey Fell, chief executive officer,
the Debtor disclosed up to $500,000 in assets and up to $10 million
in liabilities.
David V. Wadsworth, Esq., at Wadsworth Garber Warner Conrardy,
P.C., represents the Debtor as legal counsel.
SMILEDIRECTCLUB INC: Court OKs $80MM DIP Loan from Cluster Holdco
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas,
Houston Division, authorized SmileDirectClub, Inc. and affiliates
to use cash collateral and obtain postpetition financing pursuant
to the terms and conditions of a Superpriority Senior Secured
Delayed-Draw Debtor-in-Possession Credit Agreement with Cluster
Holdco LLC, as administrative agent and collateral agent.
The Debtors faced significant challenges in their chapter 11 cases
due to declining sales due to inflation, interest rates, and other
economic factors. They initiated programs to right-size their
operating structure and develop core aspects of their business,
including cost savings, suspending global operations, developing
SmileMaker, and offering CarePlus. They also entered into a Credit
Facility with HPS Investment Partners, LLC to strengthen their
liquidity position. However, they continued to face financial
challenges, reduced receipts, and decreased operating cashflow
throughout 2023. To preserve their business as a going concern, the
Debtors' founders proposed a DIP Facility.
The Debtors obtained senior secured postpetition obligations on a
superpriority basis in respect of a senior secured superpriority
new money delayed-draw term loan facility in the aggregate
principal amount of up $80 million, comprised of:
(a) upon entry of the Interim Order, up to $30 million of DIP
Loans, consisting of (i) $20 million of Initial Draw T-1 Loans,
made immediately available to the Debtors by the Initial DIP
Lenders, and (ii) up to $10 million of Accordion Loans, and
(b) upon entry of the Final Order, up to $50 million of
additional DIP Loans, consisting of (i) $30 million of Delayed Draw
T-2 Loans, made available to the Debtors by the Initial DIP Lenders
if the Delayed-Draw Condition is met, (ii) up to $15 million of
additional Accordion Loans, and (iii) a roll-up of $5 million of
the outstanding principal balance under a Prepetition Revolving
Credit Agreement.
The DIP Facility is due and payable through the earliest to occur
of:
(a) December 29, 2023;
(b) the effective date of any chapter 11 plan of
reorganization, other than a Liquidation Plan;
(c) the date upon which the consummation of a sale or other
disposition of all or substantially all of the Debtors' assets
under 11 U.S.C. section 363 has occurred;
(d) the date of acceleration or termination of the DIP
Facility; and
(e) the date of the dismissal of any of the Chapter 11 Cases
or conversion of the Chapter 11 Cases to cases under chapter 7 of
the Bankruptcy Code; provided, however, that the Scheduled Maturity
Date will be extended automatically for an additional 90 days if
the Liquidation Plan has become effective.
The Debtors are required to comply with these milestones:
(a) the entry of the Interim Order no later than five days
after the Petition Date;
(b) the entry of the Final Order no later than 25 days after
the Petition Date;
(c) establishment of a bid deadline no later than 55 days
after the Petition Date;
(d) testing of the Delayed-Draw Condition no later than 60
days after the Petition Date;
(e) confirmation of the Plan no later than 85 days after the
Petition Date; and
(f) achieving the Effective Date of the Plan no later than 90
days after the Petition Date.
As of the Petition Date, the Debtors had approximately $891 million
in total principal outstanding under their funded debt
obligations.
(a) HPS Credit Facility
On April 27, 2022, SPV, a wholly-owned special purpose subsidiary
of SmileDirectClub, Inc., entered into a Loan Agreement by and
among SPV, as the borrower, SmileDirectClub, LLC, as the seller and
servicer, certain lenders party thereto, and HPS Investment
Partners, LLC, as administrative agent and collateral agent,
providing a 42-month secured delayed-draw term loan facility to SPV
in an aggregate maximum principal amount of up to $255 million.
(b) Secured Promissory Note
On August 4, 2023, SDC, LLC entered into a Revolving Credit and
Security Agreement providing the Debtors with a $10 million line of
credit from Cluster Holdco LLC, a Delaware limited liability
company that is beneficially owned by David Katzman, the Debtors'
Chief Executive Officer. SDC, LLC issued the Prepetition Revolving
Lender a secured promissory note in the principal amount of $10
million to evidence the amounts loaned by the Prepetition Revolving
Lender under the Line of Credit. As of the Petition Date, $5
million under the Secured Promissory Note remains outstanding.
(c) Convertible Notes
In February 2021, SDC, Inc. raised, in the aggregate, a total of
$747.5 million through (a) the issuance of $650 million in
principal amount of 0.00% convertible unsecured senior notes due
2026 and (b) certain capped call transactions resulting in an
additional $97.5 million in incremental financing. These proceeds
helped fund the Company's international and operational growth.
SDC, Inc. and Wilmington Trust, National Association, as trustee,
entered into an indenture on February 9, 2021 providing for the
issuance of the Convertible Notes. SDC, Inc. also granted the
initial purchasers of the Original Convertible Notes an option to
purchase up to an additional $97.5 million in aggregate principal
amount of the Convertible Notes, which the purchasers partially
exercised on February 9, 2021, and fully exercised on February 11,
2021, with respect to the remaining options. The Convertible Notes
do not bear regular interest and the principal amount of the
Convertible Notes do not accrete. As of the Petition Date, there is
approximately $747.5 million in principal outstanding under the
Indenture.
The Court said holders of the Debtors' 0.00% convertible senior
notes due 2026 that constitute "accredited investors" and certify
in writing as to their status as an accredited investor will have
14-days from the Petition Date to deliver to the Debtors and the
DIP Agent a binding subscription for up to $25 million of DIP
Loans. Two fifths of the subscribed amount of Accordion Loans, up
to a total of $10 million must be funded by the date that is five
business days after the Subscription Deadline and the remaining
three fifths of the subscribed amount, up to $15 million, must be
funded upon satisfaction of the Delayed-Draw Condition. To the
extent there is an oversubscription for the Accordion Loans, the
amount of Accordion Loans funded by each subscribing lenders will
be reduced ratably proportionate to the relative amount subscribed
by each lender.
As adequate protection, the Prepetition Revolving Lender is granted
a valid, perfected replacement security interest in and lien on the
DIP Collateral. The Adequate Protection Liens will be in addition
to all valid and enforceable liens and security interests now
existing in favor of the Prepetition Revolving Lender and not in
substitution therefor.
The Prepetition Revolving Lender is granted, subject to the DIP
Superpriority Claims and the Carve Out, an allowed administrative
expense claim in each of the Chapter 11 Cases and any Successor
Cases as provided in 11 U.S.C. section 507(b) to the extent of any
Diminution in Value of its interest in the Prepetition Collateral
with, except as set forth in this Interim Order, priority in
payment over all other administrative claims in the Chapter 11
Cases, which 507(b) Claim will have recourse to and be payable from
all of the DIP Collateral in accordance with the priorities set
forth therein, including, upon entry of a Final Order, proceeds of
Avoidance Actions.
A final hearing on the matter is set for October 24, 2023.
A copy of the motion is available at https://urlcurt.com/u?l=G3XCMU
from PacerMonitor.com.
A copy of the order is available at https://urlcurt.com/u?l=MTns37
from PacerMonitor.com.
About SmileDirectClub
SmileDirectClub, Inc. (Nasdaq: SDC)
--http://www.SmileDirectClub.com/-- is an oral care company and
creator of the first medtech platform for teeth straightening.
Through its cutting-edge telehealth technology and vertically
integrated model, SmileDirectClub is revolutionizing the oral care
industry. SmileDirectClub's mission is to democratize access to a
smile each and every person loves by making it affordable and
convenient for everyone. SmileDirectClub is headquartered in
Nashville, Tennessee.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 23-90786) on
September 29, 2023. In the petition signed by Troy Crawford, chief
financial officer, the Debtor disclosed up to $498,712,000 in
assets and up to $1,051,823,000 in liabilities.
Judge Christopher M. Lopez oversees the case.
The Debtor tapped Kirkland & Ellis LLP and Kirkland & Ellis
International LLP as general bankruptcy counsel, Jackson Walker LLP
as local bankruptcy counsel, Centerview Partners LLC as financial
advisor and investment banker, FTI Consulting Inc. as restructuring
advisor, and Kroll Restructuring Administration LLC as notice and
claims agent.
SOFT SURROUNDING: Proposes Layoffs Pending Chapter 11 Sale
----------------------------------------------------------
Diana Barr of St. Louis Business Journal reports that Soft
Surroundings, the Creve Coeur-based retailer, has notified 181
headquarters employees that some will definitely lose their jobs
while others might still keep their employment under a new owner.
The retailer, which sells women's clothes, beauty products, gifts
and home décor, earlier this month said it plans to sell its
direct-to-consumer assets to online retailer Coldwater Creek as
part of a restructuring under a Chapter 11 bankruptcy filing. If
approved, the plan calls for shuttering the local retailer's
brick-and-mortar stores.
In a Worker Adjustment and Retraining Notification (WARN) Act
notice received Monday, September 18, 2023, by the state of
Missouri, Soft Surroundings said that on September 19, 2023 it
notified all headquarters employees that if it's not successful in
selling all or part of its business, it's likely the facility will
close, "in which case all employees will be terminated."
About Soft Surroundings
Operating under the Soft Surroundings brand, Soft Surroundings
Holdings and its subsidiaries are a direct-to- consumer nationwide
company, selling women's apparel, accessories, beauty products, and
home goods. The Debtors' brand is centered around a direct to
consumer business, which includes a robust e-commerce marketplace.
Soft Surroundings Holdings, LLC, and its 3 affiliates sought
Chapter 11 protection (Bankr. S.D. Tex. Lead Case No. 23-90769) on
Sept. 10, 2023, with $0 to $50,000 in assets and $50 million to
$100 million in liabilities. Curt Kroll, chief restructuring
officer, signed the petitions.
The Debtors tapped KATTEN MUCHIN ROSENMAN LLP as general bankruptcy
counsel; and LAW OFFICE OF LIZ FREEMAN as local bankruptcy counsel.
SSG CAPITAL PARTNERS, LLC, is the investment banker. STRETTO,
INC., is the claims agent.
SOFT SURROUNDINGS: Court OKs $18MM DIP Loan from 1903 Partners
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas,
Houston Division, authorized Soft Surroundings Holdings, LLC and
affiliates to use cash collateral and obtain postpetition
financing, on a final basis.
The Debtors are permitted to obtain post-petition financing of up
to $18 million from 1903P Loan Agent, LLC, as agent and 1903
Partners, LLC, as lender, on the terms and conditions set forth in
the Pre-Petition Credit Agreement dated as of September 13, 2023.
The DIP Facility is due and payable through the earliest of:
(a) December 1, 2023;
(b) 30 days after the entry of the Interim Financing Order if
the Final Financing Order has not been entered prior to the
expiration of such 30 day period;
(c) the date of the entry of an order by the Bankruptcy Court
confirming a Chapter 11 Plan;
(d) the date of the sale of all or a substantial part of the
business of any Loan Party or all or substantially all of the
assets of any Loan Party;
(e) without the Agent's prior written consent, the date of
filing or express written support by the Loan Parties of bidding
procedures, 363 sale processes or transactions (or such similar
sale processes or transactions), plans of liquidation or
reorganization or related disclosure statements or supplemental
materials that are not in accordance with the RSA, if applicable,
and that are not otherwise satisfactory to the Agent;
(f) the date of any breach by Loan Parties or any other party
thereto of any of the terms of the RSA, or the termination of the
RSA after the effectiveness thereof;
(g) the date the Loan Parties' file a motion seeking to
convert any Chapter 11 Case to a case under chapter 7 of the
Bankruptcy Code;
(h) the date of conversion of any Chapter 11 Case to a case
under Chapter 7 of the Bankruptcy Code;
(i) the appointment or election of a trustee under Chapter 11
of the Bankruptcy Code, or an examiner or responsible officer with
enlarged powers relating to the operation of the Loan Parties'
business (powers beyond those set forth in section 1106(a)(3) and
(4) of the Bankruptcy Code) under section 1106 of the Bankruptcy
Code;
(j) the date any Loan Party files a motion seeking a
termination or dismissal of any Chapter 11 Case;
(k) the date Agent sends a Carve-out Trigger Notice (as such
term is defined in any Financing Order); or
(l) the date of dismissal of any Chapter 11 Case.
The Debtors are required to comply with these milestones:
1. On or before September 12, 2023, the Bankruptcy Court will
have entered an order in form and substance satisfactory to Agent
approving (i) the assumption of the Consulting Agreement by and
between certain Debtors and Gordon Brothers Retail Partners, LLC;
and (ii) the conduct of closings or similarly themed sales and the
procedures; (iii) and the procedures and actions necessary or
desirable to conduct such sales at the closing stores;
2. On or before September 12, 2023, the Loan Parties will
have filed with the Bankruptcy Court a motion in form and substance
satisfactory to Agent seeking conditional approval of (i) a
Disclosure Statement with respect to an Acceptable Plan of
Reorganization in form and substance acceptable to Agent; and (ii)
the solicitation materials in form and substance acceptable to
Agent related to an Acceptable Plan of Reorganization;
3. On or before September 25, 2023, the Bankruptcy Court will
have entered an order in form and substance satisfactory to Agent
conditionally approving (i) the Disclosure Statement with respect
to an Acceptable Plan of Reorganization; and (ii) the Solicitation
Materials;
4. On or before October 2, 2023, the Bankruptcy Court will
have entered (i) the Final Financing Order and (ii) the Final Store
Closing Order, in form and substance satisfactory to the Agent;
5. On or before November 3, 2023, the Bankruptcy Court will
have entered a final order in form and substance satisfactory to
Agent (i) confirming an Acceptable Plan of Reorganization, and (ii)
approving the Sale Transaction and Agency Agreement;
6. On or before November 3, 2023, the Debtors will have
entered into the Agency Agreement; and
7. On or before November 6, the Sale Transaction will have
closed, the Lender will have received repayment in full of the
Obligations (including any Pre-Petition Obligations then
outstanding, except as Agent may otherwise agree with respect to
the Specified Pre-Petition Obligations) and the DIP Credit Facility
will terminate.
As of the Petition Date, the Borrowers and Intermediate HoldCo were
indebted to Agent and Lender under the Pre-Petition First Lien Loan
Documents in respect of outstanding Loans in an aggregate amount of
not less than $14.7 million.
Prepetition, BA-Molagers SPV II, LLC, a Delaware limited liability
company, made loans, advances, and financial accommodations to
Debtors and HoldCo under a Fifth Amended and Restated Secured
Promissory Note and related agreements. As of the Petition Date,
the Debtors and HoldCo were indebted to BA-Molagers SPV for
advances totaling $47 million.
As adequate protection, the Prepetition Parties are granted valid,
binding, enforceable and perfected replacement liens upon and
security interests in all DIP Collateral.
As further adequate protection, the Prepetition Parties are granted
an allowed superpriority administrative expense claim in each of
the Cases and any successor bankruptcy cases.
A copy of the Court's order and the Debtor's budget is available at
https://urlcurt.com/u?l=xKwKH6 from Stretto, the claims agent.
The Debtor projects total disbursements, on a weekly basis, as
follows:
$5,454,163 for the week ending October 7, 2023;
$2,204,935 for the week ending October 14, 2023;
$4,366,163 for the week ending October 21, 2023; and
$2,653,519 for the week ending October 26, 2023.
About Soft Surroundings
Operating under the Soft Surroundings brand, Soft Surroundings
Holdings, LLC and its affiliates are a nationwide
direct-to-consumer company, selling women's apparel, accessories,
beauty products, and home goods. The brand is centered around a
direct to consumer business, which includes a robust e-commerce
marketplace.
Soft Surroundings Holdings and its three affiliates sought Chapter
11 protection (Bankr. S.D. Texas Lead Case No. 23-90769) on Sept.
10, 2023. Soft Surroundings Holdings listed as much as $50,000 in
assets and $50 million to $100 million in liabilities.
Debtor-affiliate, Triad Catalog Co., L.L.C., listed $100 million to
$500 million in both assets and liabilities.
Curt Kroll, chief restructuring officer, signed the petitions.
Judge Christopher Lopez oversees the case.
The Debtors tapped Katten Muchin Rosenman, LLP as generalbankruptcy
counsel; the Law Office of Liz Freeman as local bankruptcy counsel;
and SSG Capital Partners, LLC as investment banker. Stretto, Inc.
is the claims agent.
SORRENTO THERAPEUTICS: Hires Connor Group as Accounting Adviser
---------------------------------------------------------------
Sorrento Therapeutics, Inc. seeks approval from the U.S. Bankruptcy
Court for the Southern District of Texas to employ Connor Group
Global Services, LLC as accounting adviser.
The firm will assist the Debtors with debtor-in-possession
accounting and form 10-Q and 10-K filing support, accounting and
reporting during the Debtors' bankruptcy proceedings, upon
emergence from bankruptcy, and upon applying fresh-start
reporting.
The firm will be paid at these rates:
Partners $518 per hour
Directors $446 per hour
Senior Manager $374 per hour
Managers $226 per hour
Supervising Senior $221 per hour
Senior $176 per hour
Associates $140 per hour
Staff I $99 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Oleg Predoliak, a partner at Connor Group Global Services, LLC,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Oleg Predoliak
Connor Group Global Services, LLC
Tel: (650) 300-5101
About Sorrento Therapeutics
Sorrento Therapeutics, Inc. -- http://www.sorrentotherapeutics.com/
-- is a clinical and commercial stage biopharmaceutical company
developing new therapies to treat cancer, pain (non-opioid
treatments), autoimmune disease and COVID-19. Sorrento's
multimodal, multipronged approach to fighting cancer is made
possible by its extensive immuno-oncology platforms, including key
assets such as next-generation tyrosine kinase inhibitors ("TKIs"),
fully human antibodies ("G-MAB(TM) library"), immuno-cellular
therapies ("DAR-T(TM)"), antibody-drug conjugates ("ADCs"), and
oncolytic virus ("Seprehvec(TM)"). Sorrento is also developing
potential antiviral therapies and vaccines against coronaviruses,
including STI-1558, COVISHIELD(TM) and COVIDROPS(TM), COVI-MSCTM;
and diagnostic test solutions, including COVIMARK(TM).
Sorrento Therapeutics, Inc., and Scintilla Pharmaceuticals, Inc.,
sought Chapter 11 protection (Bankr. S.D. Tex. Lead Case No.
23-90085) on Feb. 13, 2023. Sorrento disclosed assets in excess of
$1 billion and liabilities of about $235 million as of Feb. 10,
2023.
Judge David R. Jones oversees the cases.
The Debtors tapped Latham & Watkins, LLP as bankruptcy counsel;
Jackson Walker, LLP as local counsel; Tran Singh, LLP as conflicts
counsel; and M3 Advisory Partners, LP as financial advisor. Mohsin
Y. Meghji, managing partner at M3, serves as the Debtors' chief
restructuring officer. Stretto Inc. is the claims, noticing and
solicitation agent.
Norton Rose Fulbright US, LLP and Milbank, LLP represent the
official committee of unsecured creditors appointed in the Debtors'
Chapter 11 cases.
On April 10, 2023, the U.S. Trustee for Region 7 appointed an
official committee to represent the Debtors' equity security
holders.
On April 10, 2023, the U.S. Trustee for Region 7 appointed an
official committee to represent the Debtors' equity security
holders. Glenn Agre Bergman & Fuentes, LLP and Greenberg Traurig,
LLP serve as the equity committee's bankruptcy counsel.
SOURCEWATER INC: Hires Mintz Levin Cohn as Special Counsel
----------------------------------------------------------
Sourcewater, Inc. dba Sourcenergy seeks approval from the U.S.
Bankruptcy Court for the Southern District of Texas to employ
Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. as Special IP
Litigation Counsel.
The firm will represent the Debtor in connection with assessing the
Debtor's patent portfolio in view of product offerings from
companies active in the energy industry generally, and
unconventional drilling industry specifically, for potential
assertion of intellectual property claims, in addition to other
potentially adjacent legal claims.
The firm will be paid based upon its normal and usual hourly
billing rates. The firm will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Thomas H. Wintner, a partner at Mintz, Levin, Cohn, Ferris, Glovsky
and Popeo, P.C., disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached at:
Thomas H. Wintner, Esq.
MINTZ, LEVIN, COHN, FERRIS,
GLOVSKY AND POPEO, P.C.
One Financial Center
Boston, MA 02111
Tel: (617) 542-6000
About Sourcewater, Inc. dba Sourcenergy
Sourcewater, Inc. gathers, analyzes and visualizes surface and
subsurface energy and water activity. The Debtor sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case
No. 23-30960) on March 17, 2023. In the petition signed by Joshua
A. Adler, as chief executive officer, the Debtor disclosed up to $1
million in assets and up to $10 million in liabilities.
Judge Jeffrey P. Norman oversees the case.
Jarrod B. Martin, Esq., at Chamberlain, Hrdlicka, White, Williams,
& Aughtry, P.C., is serving as the Debtor's legal counsel.
ST JOHNS RESIDENCE: Hires Law Offices of Isaac Nutovic as Counsel
-----------------------------------------------------------------
St Johns Residence LLC seeks approval from the U.S. Bankruptcy
Court for the Eastern District of New York to employ Law Offices of
Isaac Nutovic as counsel to handle its Chapter 11 bankruptcy case.
The firm will be paid based upon its normal and usual hourly
billing rates. The firm will also be reimbursed for reasonable
out-of-pocket expenses incurred.
The firm received a retainer in the amount of $19,238.
Raizy Freund, Esq., a partner at Law Offices of Isaac Nutovic,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Raizy Freund, Esq.
LAW OFFICES OF ISAAC NUTOVIC
261 Madison Avenue, 26th Floor
New York, NY 10016
Tel: (917) 922-7963
About St. Johns Residence LLC
St Johns Residence LLC in Brooklyn NY, filed its voluntary petition
for Chapter 11 protection (Bankr. E.D.N.Y. Case No. 23-43194) on
September 7, 2023, listing as much as $1 million to $10 million in
both assets and liabilities. Ephraim Diamond as chief restructuring
officer, signed the petition.
Judge Nancy Hershey Lord oversees the case.
LAW OFFICES OF ISAAC NUTOVIC serve as the Debtor's legal counsel.
SUSTAITA ENTERPRISES: Court OKs Interim Cash Collateral Access
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Norther District of Texas, Dallas
Division, authorized Sustaita Enterprises, LLC to use cash
collateral on an interim basis, in accordance with the budget.
The Debtor requires the use of the cash collateral to continue the
Debtor's ordinary course business operations and to maintain the
value of the bankruptcy estates.
Regions Financial Corporation asserts that the Debtor is indebted
to it under various contracts, notes, security agreements and other
loan instruments entered into prior to the Petition Date and that
the Regions Indebtedness is secured by properly perfected liens on
all or substantially all of the Debtor's assets.
Regions Bank asserts that the Regions Bank Indebtedness totals
approximately $811,000 as of the Petition Date. Regions Bank
asserts that the Regions Bank Indebtedness is secured by a lien or
liens on all or on substantially all of the Debtor's assets.
Mulligan Funding, LLC asserts that the Debtor is indebted to it
under various contracts, notes, security agreements and other loan
instruments entered into prior to the Petition Date and that the
Mulligan Indebtedness is secured by properly perfected liens on all
or substantially all of the Debtor's assets.
Mulligan asserts that the Mulligan Indebtedness totals
approximately $156,000 as of the Petition Date. Mulligan asserts
that the Mulligan Indebtedness is secured by a lien or liens on all
or on substantially all of the Debtor's assets.
The Small Business Administration may assert that the Debtor is
indebted to it under various contracts, notes, security agreements
and other loan instruments entered into prior to the Petition Date
and that the SBA Indebtedness is secured by properly perfected
liens on all or substantially all of the Debtor's assets. The SBA
may assert that the SBA Indebtedness totals approximately $2
million as of the Petition Date.
Vivian Capital asserts that the Debtor is indebted to it under
various contracts, notes, security agreements and other loan
instruments entered into prior to the Petition Date and that the
Vivian Capital Indebtedness is secured by properly perfected liens
on all or substantially all of the Debtor's assets.
Vivian Capital asserts that the Vivian Capital Indebtedness totals
approximately $79,447 as of the Petition Date.
As adequate protection, the Secured Creditors will be granted
post-petition security interests in, and replacement lien upon,
subject only to prior nonavoidable liens, claims, or interests in
the Debtor's assets and property of every kind; provided that the
Replacement Liens will only be to the extent, priority, and
validity as existed on such assets and property of the Debtor as of
the Petition Date. Notwithstanding the foregoing, the Secured
Creditors will not receive a security interest in, or a replacement
lien on, the Debtor's avoidance actions under chapter 5 of the
Bankruptcy Code. The Replacement Liens will serve as adequate
protection for the use of the cash collateral to the extent of any
diminution of the value of the collateral securing the claim of the
Secured Creditors.
All liens and security interests granted are deemed effective,
valid, and perfected as of the Petition Date -- to the extent the
original security interests of the Secured Lenders were valid and
perfected as of the Petition Date -- without the necessity of
filing or recording by or with any entity of any documents or
instruments otherwise required to be filed or recorded under
applicable non-bankruptcy law.
To the extent of any diminution in value of their respective
collateral, the Secured Lenders will have an administrative expense
pursuant to 11 U.S.C. section 507(b) of the Bankruptcy Code and
against the Debtor's bankruptcy estate for the Debtor's use of cash
collateral to the extent of any diminution in the value of the
Secured Lenders' interest in its collateral and the administrative
claim will have priority over and above all other costs and
expenses of the kind specified in, or ordered pursuant to, 11
U.S.C. sections 503(b) or 507(a) except as provided therein.
These events constitute an "Event of Default":
(a) The Debtor's Chapter 11 Case is converted to a case under
Chapter 7 of the Bankruptcy Code;
(b) The Court removes the Debtor as debtor-in-possession under 11
U.S.C. section 1181(a), provided, however, that it will not be an
event of default for the Court to remove the Debtor from possession
on the request of the Secured Lenders;
(c) Any default under, breach of or failure to comply with, any
provisions of the Interim Order, which breach is not cured within
five business days after the Debtor's receipt of written notice
thereof.
There will be a carve-out for fees payable under 28 U.S.C. section
1930; and professional fees and expenses in the approved amounts in
the 13-week cash flow budget; and fees and expenses for the
Subchapter V Trustee that is not subject to any protections granted
to the Secured Lenders under the Interim Order or the loan
documents unless the entire Carve-Out is not approved for payment
by the Court.
A final hearing on the matter is set for October 19, 2023 at 9:30
a.m.
A copy of the court's order and the Debtor's budget is available at
https://urlcurt.com/u?l=J7TAcY from PacerMonitor.com.
$41,538 for the week ending October 7, 2023;
$38,125 for the week ending October 14, 2023;
$42,097 for the week ending October 21, 2023; and
$51,915 for the week ending October 28, 2023.
About Sustaita Enterprises, LLC
Sustaita Enterprises, LLC is part of the general freight trucking
industry. The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Tex. Case No. 23-31812) on August 21,
2023. In the petition signed by Carlos Sustaita, president and
member, the Debtor disclosed $3,969,806 in assets and $3,589,563 in
liabilities.
Brandon Tittle, Esq., at Glast, Phillips & Murray, P.C., represents
the Debtor as legal counsel. Lane Gormatt Trubitt, LLC is the
financial advisor.
TANTUM COMPANIES: Hires Pokorny & Company as Accountant
-------------------------------------------------------
Tantum Companies, LLC seeks approval from the U.S. Bankruptcy Court
for the Western District of North Carolina to employ Pokorny &
Company as accountant.
The firm will provide accounting services that will be necessary
during these Chapter 11 cases.
The firm will be paid at these rates:
James R. Pokorny $300 per hour
Elizabeth Shelley $125 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
The firm received a retainer in the amount of $12,500.
James R. Pokorny, a partner at Pokorny & Company, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
James R. Pokorny
Pokorny & Company, PC
101 Parkshore Dr. # 100
Folsom, CA 95630
Tel: (916) 932-2040
Email: info@pokornycpas.com
About Tantum Companies, LLC
Tantum Companies, LLC operates in the restaurant industry. The
company is based in Charlotte, N.C.
Tantum Companies and its affiliates sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. W.D.N.C. Lead Case No.
23-30407) on June 26, 2023. In the petition signed by CEO Mark
Cote, Tantum Companies disclosed $1 million to $10 million in
assets and $10 million to $50 million in liabilities.
Judge Craig Whitley oversees the cases.
Robert A. Cox, Jr., Esq., at Hamilton Stephens Steele + Martin,
PLLC and Blystone and Donaldson serve as the Debtors' legal counsel
and financial advisor, respectively.
Moon Wright & Houston, PLLC represents the official committee of
unsecured creditors appointed in the Debtors' Chapter 11 cases.
TC WARNER: Seeks to Hire Parsons Behle & Latimer as Legal Counsel
-----------------------------------------------------------------
TC Warner, LLC seeks approval from the U.S. Bankruptcy Court for
the District of Utah to employ Parsons Behle & Latimer as counsel.
The firm will render these services:
(a) advise the Debtor and take all necessary or appropriate
actions at its direction with respect to protecting and preserving
its estate;
(b) draft and develop all necessary legal papers;
(c) take all necessary or appropriate actions in connection
with a plan of reorganization and related disclosure statement(s)
and all related documents, and such further actions as may be
required in connection with the administration of the Debtor's
estate;
(d) take all necessary or appropriate actions in connection
with the reorganization of the Debtor and its operations and all
related actions and preparing such documentation as is necessary to
accomplish the reorganization of the Debtor; and
(e) perform and advise the Debtor as to all other necessary
legal services in connection with the prosecution of its Chapter 11
case.
The hourly rates of the firm's counsel and staff are as follows:
Brian M. Rothschild, Shareholder $400
Darren Neilson, Of counsel $375
Simeon J. Brown, Associate $300
Angalee Draidfort, Paralegal $200
In addition, the firm will seek reimbursement for expenses
incurred.
Mr. Neilson disclosed in a court filing that the firm is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
Darren Neilson, Esq.
Parsons Behle & Latimer
201 S. Main Street, Suite 1800
Salt Lake City, UT 84111
Telephone: (801) 532-1234
Email: dneilson@parsonsbehele.com
About TC Warner
TC Warner, LLC sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Utah Case No. 23-24249) on Sept. 25,
2023. In the petition filed by Todd Smith, authorized
representative, the Debtor disclosed $77,341,970 in total assets
and $28,112,927 in total liabilities.
Judge William T. Thurman oversees the case.
Darren Neilson, Esq., at Parsons Behle & Latimer serves as legal
counsel.
TEXAS CLT: Seeks to Hire Harney Partners as Financial Advisor
-------------------------------------------------------------
Texas CLT LLC seeks approval from the U.S. Bankruptcy Court for the
Western District of Texas to employ Harney Partners as financial
advisor.
The firm will assist the Debtor to analyze its strategic
restructuring options, including but not limited to:
(a) a potential liquidation of substantially all assets and/or
filing for bankruptcy protection;
(b) assist the Debtor to execute upon its selected
restructuring strategies; and
(c) other services as may be agreed upon between the firm and
the Debtor.
The hourly rates of the firm's professionals are as follows:
President/EVP $600 - $700
Managing Director $500 - $600
Sr. Manager/Director $400 - $500
Manager/Sr. Consultant $275 - $400
Support Staff $180 - $275
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received a flat fee of $25,000 for liquidation services.
John Horner, CPA, a senior manager at Harney Partners, disclosed in
a court filing that the firm is a "disinterested person" as that
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
John Horner
Harney Partners
8911 Capital of Texas Highway, Suite 2120
Austin, TX 78759
Telephone: (501) 276-2004
Email: jhorner@harneypartners.com
About Texas CLT
Texas CLT LLC sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. W.D. Tex. Case No. 23-10705) on Aug. 30, 2023. In the
petition filed by Mark Quigley, manager, the Debtor disclosed up to
$500,000 in assets and up to $10 million in liabilities.
Judge H. Christopher Mott oversees the case.
The Debtor tapped Lynn Hamilton Butler, Esq., at Husch Blackwell
LLP as counsel and Harney Partners as financial advisors.
TEXAS CLT: Seeks to Hire Husch Blackwell as Bankruptcy Counsel
--------------------------------------------------------------
Texas CLT LLC seeks approval from the U.S. Bankruptcy Court for the
Western District of Texas to employ Husch Blackwell LLP as
counsel.
The firm will render these services:
(a) advise the Debtor of its powers and duties;
(b) take all necessary action to protect and preserve the
Debtor's estate;
(c) prepare legal papers;
(d) represent the Debtor at the meeting of creditors, plan
disclosure, confirmation, and related hearings, and any adjourned
hearings, therefore;
(e) assist with any disposition of the Debtor's assets;
(f) take all necessary or appropriate actions in connection
with any plan of reorganization and related disclosure statement
and all related documents, and such further actions as may be
required in connection with the administration of the Debtor's
estate;
(g) represent the Debtor in adversary proceedings and other
contested bankruptcy matters; and
(h) represent the Debtor in the above matters, and any other
matter that may arise in connection with its reorganization
proceedings and business operations.
The hourly rates of the firm's counsel and staff are as follows:
Partners $400 - $925
Associates $290 - $550
Paralegals $160 – $370
In addition, the firm will seek reimbursement for expenses
incurred.
Husch Blackwell has received a $25,000 retainer from the Debtor for
services to be performed in connection with this case. The balance
of the retainer as of the petition date was $5,8744.34.
Lynn Hamilton Butler, Esq., an attorney at Husch Blackwell,
disclosed in a court filing that the firm is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Lynn Hamilton Butler, Esq.
Husch Blackwell LLP
111 Congress Avenue, Suite 1400
Austin, TX 78701
Telephone: (512) 479-9758
Email: lynn.butler@huschblackwell.com
About Texas CLT
Texas CLT LLC sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. W.D. Tex. Case No. 23-10705) on Aug. 30, 2023. In the
petition filed by Mark Quigley, manager, the Debtor disclosed up to
$500,000 in assets and up to $10 million in liabilities.
Judge H. Christopher Mott oversees the case.
The Debtor tapped Lynn Hamilton Butler, Esq., at Husch Blackwell
LLP as counsel and Harney Partners as financial advisors.
TKEES INC: Wins Interim Cash Collateral Access Thru Oct 31
----------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Florida,
Broward Division, authorized TKEES, Inc. to use cash collateral on
a further interim basis in accordance with the budget, with a 10%
variance, through October 31, 2023.
As previously reported by the Troubled Company Reporter, the Debtor
believes four creditors assert secured claims against the estate:
-- Hilldun Corporation asserts a secured claim in the
approximate amount of $300,000. Per UCC financing statements filed
by Hilldun, the claim is secured by security interests in the
Debtor's accounts, instruments, contract rights, chattel paper,
documents and general intangibles.
-- Shopify Capital, Inc. asserts a secured claim in the
approximate amount of $290,536. Upon information and belief a UCC
financing statement filed against the Debtor by Corporation Service
Company, as a representative, perfects the Shopify debt. Per the
financing statement, the debt is secured by all assets of the
Debtor.
-- Windsor Private Capital asserts a secured claim in the
approximate amount of $5.832 million. However, no UCC financing
statements appear to have been filed by Windsor against the Debtor.
As such, any security interest Windsor may allege is not perfected
and subject to avoidance in the case.
-- Power One Capital Corp. asserts a secured claim in the
approximate amount of $369,221. As with Windsor, however, Power One
does not appear to have filed a UCC financing statement against the
Debtor. Its security interest is therefore unperfected and subject
to avoidance.
As adequate protection, the creditors are granted a post-petition
security interest and lien in, on, to, and against any and all
assets of the Debtor, to the same extent, perfection and priority
that the Creditors held a properly perfected pre-petition security
interest in such assets.
A further hearing on the matter is set for October 25 at 1:30 p.m.
A copy of the Court's order is available at
https://urlcurt.com/u?l=8miTKi from PacerMonitor.com.
About TKEES, Inc.
TKEES, Inc. is a manufacturer and seller of sandals and flip flops
for women. TKEES, Inc. sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D. Fla. Case No. 23-12126) on March
20, 2023. In the petition signed by Jesse Burnett, president, the
Debtor disclosed up to $10 million in both assets and liabilities.
Judge Scott M. Grossman oversees the case.
Bradley S. Shraiberg, Esq., at Shraiberg Page P.A., represents the
Debtor as legal counsel.
TOPPOS LLC: Case Summary & 16 Unsecured Creditors
-------------------------------------------------
Debtor: Toppos LLC
401 E 11th Street
Lumberton, NC 28358
Case No.: 23-02889
Business Description: The Debtor is primarily engaged in acting as
lessors of buildings used as residences or
dwellings.
Chapter 11 Petition Date: October 5, 2023
Court: United States Bankruptcy Court
Eastern District of North Carolina
Judge: Hon. Pamela W. Mcafee
Debtor's Counsel: Blake Y. Boyette, Esq.
BUCKMILLER, BOYETTE & FROST, PLLC
4700 Six Forks Road
Suite 150
Raleigh, NC 27609
Tel: 919-296-5040
Fax: 919-890-0356
Email: bboyette@bbflawfirm.com
Estimated Assets: $10 million to $50 million
Estimated Liabilities: $50 million to $100 million
The petition was signed by Neil Carmichael Bender, II as
member-manager.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/2ACFNRI/TOPPOS_LLC__ncebke-23-02889__0001.0.pdf?mcid=tGE4TAMA
List of Debtor's 16 Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. 21st Mortgage Corporation Unknown
Attn: Manager, Officer, Agent
P.O. Box 220
Knoxville, TN 37901
2. Bladen County Tax Office Property Taxes $19,306
Attn: Manager, Officer, Agent
201 E King St.
Elizabethtown, NC 28337
3. Brendan A. Potts Storage Costs $12,000
1751 North Grand
Ave W
Springfield, IL 62702
4. CHC TN, LLC Unknown
Attn: Manager, Officer, Agent
3340 Lake View Drive
Knoxville, TN 37919
5. City of Lumberton Property Taxes $146,995
Attn: Manager, Officer, Agent
500 N Cedar Street
Lumberton, NC 28358
6. Clayton Homes - Tru $17,143
White Pine
Attn: Manager, Officer, Agent
2215 Walnut Street
White Pine, TN
37890
7. Cumberland County Tax Admin. Property Taxes $8,593
Attn: Manager, Officer, Agent
117 Dick Street,
Room 530
Fayetteville, NC 28301
8. GreenState Credit Union Unknown
Attn: Manager,
Officer, Agent
2355 Landon Road,
PO Box 800
North Liberty, IA
52317
9. Hoke County Tax Office Property Taxes $18,221
Attn: Manager,
Officer, Agent
227 N. Main Street
Raeford, NC 28376
10. Morgan County Treasurer Property Taxes $136,656
Attn: Manager, Officer, Agent
300 West State Street
Jacksonville, IL
62650
11. Northpoint Commerical Unknown
Finance, LLC
Attn: Manager,
Officer, Agent
251 Little Falls Drive
Wilmington, DE 19808
12. Park Lake Financial Solutions $60,351
Attn: Manager, Officer, Agent
108 Mactanly Place
Staunton, VA 24401
13. Robeson County $472,789
Tax Collector
Attn: Manager,
Officer, Agent
550 N Chestnut Street
Lumberton, NC
28358
14. Sampson County Property Taxes $19,356
Tax Collector
Attn: Manager,
Officer, Agent
406 County
Complex Rd
Clinton, NC 28328
15. Sangamon County Property Taxes $55,334
Tax Collector
Attn: Manager,
Officer, Agent
200 South 9th Street
Springfield, IL 62701
16. Style Crest, Inc. Services $51,859
Attn: Manager,
Officer, Agent
2626 Glenwood Ave
Ste 550
Raleigh, NC 27608
TOWER HEALTH: S&P Lowers Long-Term Bond Rating to 'CCC+'
--------------------------------------------------------
S&P Global Ratings lowered its long-term rating on Tower Health,
Pa.'s bonds two notches to 'CCC+' from 'B'. The outlook is
negative.
"The downgrade reflects Tower Health's significant ongoing
operating losses, albeit at a lower level, that are expected to
continue in fiscal 2024, and a steep decline in unrestricted
reserves to a level that we view as highly vulnerable," said S&P
Global Ratings credit analyst Anne Cosgrove. In addition, the
rating action incorporates S&P's view of cash flow pressures that
stem from elevated labor costs and no flexibility under the current
rating with increased restructuring risk.
The obligated group's gross revenue pledge secures the bonds.
The rating reflects Tower Health's continued, albeit reduced,
operating losses through fiscal 2023, as well as what S&P views as
extremely low unrestricted reserves relative to long-term debt and
overall high leverage. Management has focused on strengthening
operations, including revenue-cycle improvements, cost containment,
and divestiture of non-core assets. These efforts have been
instrumental in reducing Tower Health's operating losses, but the
system has also had to contend with elevated labor costs and
inflation, which have exacerbated an already precarious financial
position.
S&P said, "The rating also incorporates a negative adjustment to
reflect significantly diminished financial flexibility over the
outlook period, given what we view as extremely low unrestricted
reserves and elevated leverage. In addition, the rating reflects a
negative adjustment for what we view as higher restructuring risk
and refinancing risk over the near term, and a credit profile that
we consider to be more in line with that of issuers in the 'CCC'
rating category.
"The negative outlook reflects a one-in-three chance that we could
lower the rating during the outlook period if management can't stem
the operating losses and execute on a plan to stabilize the
organization, or if unrestricted reserves decline further. In
addition, the negative outlook reflects our expectation for
continued operating losses in fiscal 2023 as well as ongoing
industry challenges, notably elevated labor costs and inflation."
TUFFSTUFF FITNESS: Caroline Djang Named Subchapter V Trustee
------------------------------------------------------------
The U.S. Trustee for Region 16 appointed Caroline Djang as
Subchapter V trustee for TuffStuff Fitness International, Inc.
Ms. Djang will be paid an hourly fee of $595 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred. The compensation for her trustee administrator,
Laurie Verstegen, is $270 per hour.
Ms. Djang declared that she is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Caroline Djang
18400 Von Karman Ave., Suite 800
Irvine, CA 92612
Phone: (949) 263-6586
Email: cdjang@buchalter.com
About Tuffstuff Fitness International
Tuffstuff Fitness International, Inc. is a manufacturer of consumer
and commercial strength products in Anaheim, Calif.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. C.D. Calif. Case No. 23-11905) on Sept. 18,
2023, with up to $10 million in both assets and liabilities.
Richard M. Reyes, Jr., chairman and chief executive officer, signed
the petition.
Judge Theodor C. Albert oversees the case.
John Patrick M. Fritz, Esq., at Levene, Neale, Bender, Yoo &
Golubchick, LLP represents the Debtor as legal counsel.
TW AUTOMATION: Case Summary & 12 Unsecured Creditors
----------------------------------------------------
Debtor: TW Automation, LC
8190 Nieman Road
Lenexa, KS 66214
Business Description: The Debtor is an automation company in
Lenexa, Kansas.
Chapter 11 Petition Date: October 5, 2023
Court: United States Bankruptcy Court
District of Kansas
Case No.: 23-21184
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: $320,183
Total Liabilities: $1,473,191
The petition was signed by Jason Luzar as member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 12 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/CP4NB6I/TW_Automation_LC__ksbke-23-21184__0001.0.pdf?mcid=tGE4TAMA
U STREET: Voluntary Chapter 11 Case Summary
-------------------------------------------
Debtor: U Street, LLC
1825 Del Paso Blvd
Sacramento, CA 95815
Business Description: The Debtor is part of the residential
building construction industry.
Chapter 11 Petition Date: October 4, 2023
Court: United States Bankruptcy Court
Eastern District of California
Case No.: 23-23504
Debtor's Counsel: Gabriel E. Liberman, Esq.
LAW OFFICE OF GABRIEL LIBERMAN, APC
1545 River Park Drive., Ste 530
Sacramento, CA 95815
Tel: 916-485-1111
Fax: 916-485-1111
Email: attorney@4851111.com
Total Assets: $2,524,784
Total Liabilities: $1,640,000
The petition was signed by Allen W. Warren as managing member.
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/S6JMN3A/U_Street_LLC__caebke-23-23504__0001.0.pdf?mcid=tGE4TAMA
ULTIMATE MEDICAL: S&P Raises Long-Term Rev Bond Ratings to 'BB+'
----------------------------------------------------------------
S&P Global Ratings raised its long-term rating to 'BB+' from 'BB'
on Public Finance Authority, Wis.' series 2019A and 2019B taxable
revenue bonds, issued for Ultimate Medical Academy (UMA), Fla. The
outlook is stable.
"The upgrade reflects our view of UMA's consistent operating
surpluses, which are expected to continue, combined with
substantial growth in the organization's financial resources," said
S&P Global Ratings credit analyst Megan Kearns.
S&P said, "The stable outlook reflects our expectation that during
the one-year outlook period, UMA will report continued full-accrual
operating surpluses and enrollment growth. While the organization
may issue additional debt, we believe the growth in the
organization's financial resources provides some capacity for
additional leverage.
"We could consider a negative rating action if UMA experiences
enrollment declines or challenges in integrating its recent
acquisition, American Institute, that cause operating deficits. We
could also consider a negative rating action if UMA issues a
significant amount of additional debt, such that balance sheet
ratios are no longer comparable with those of similarly rated
peers.
"We could consider a positive rating action if UMA significantly
improves its balance sheet ratios while maintaining or improving
enrollment and operations."
UMA's total debt outstanding as of Dec. 31, 2022, was $279.2
million, including about $239.8 million in series 2019 bonds and
$39.4 million in leases for a vehicle and facilities.
UNIVERSAL SOLAR: Dawn Maguire Named Subchapter V Trustee
--------------------------------------------------------
The U.S. Trustee for Region 14 appointed Dawn Maguire, Esq., at
Guttilla Murphy Anderson, as Subchapter V trustee for Universal
Solar America, LLC.
Ms. Maguire will be paid an hourly fee of $350 for her services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Ms. Maguire declared that she is a disinterested person according
to Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Dawn Maguire, Esq.
5415 East High Street, Suite 200
Phoenix, AZ 85054
Telephone: (480) 304-8300
Fax: (480) 304-8301
Email: TrusteeMaguire@gamlaw.com
About Universal Solar America
Universal Solar America, LLC filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. D. Ariz. Case No.
23-06491) on Sept. 18, 2023, with up to $500,000 in assets and up
to $10 million in liabilities. John Bereckis, manager, signed the
petition.
Judge Madeleine C. Wanslee oversees the case.
Patrick F. Keery, Esq., at Keery McCue, PLLC serves as the Debtor's
legal counsel.
VELSICOL CHEMICAL: Matthew Brash Named Subchapter V Trustee
-----------------------------------------------------------
The U.S. Trustee for Region 11 appointed Matthew Brash of Newpoint
Advisors Corporation as Subchapter V trustee for Velsicol Chemical
Holdings Corporation.
Mr. Brash will be paid an hourly fee of $395 for his services as
Subchapter V trustee and will be reimbursed for work-related
expenses incurred.
Mr. Brash declared that he is a disinterested person according to
Section 101(14) of the Bankruptcy Code.
The Subchapter V trustee can be reached at:
Matthew Brash
Newpoint Advisors Corporation
655 Deerfield Road, Suite 100-311
Deerfield, IL 60015
Tel: (847) 404-7845
Email: mbrash@newpointadvisors.us
About Velsicol Chemical
Velsicol Chemical Holdings Corporation is a technology company in
the industrial intermediate chemicals industry serving the global
polymer additives as well as flame retardant markets. It produces
a broad portfolio of plasticizers and flame retardants serving
global customers in the coatings, PVC, resin, flooring and adhesive
markets.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. N.D. Ill. Case No. 23-12548) on Sept. 21,
2023, with up to $50,000 in assets and $1 million to $10 million in
liabilities. Timothy Horn, authorized representative, signed the
petitions.
Judge David D. Cleary oversees the case.
Jeffrey M. Schwartz, Esq., at Much Shelist, PC represents the
Debtor as legal counsel.
VENTURE INC: Taps Harper Rains Knight & Co. as Financial Advisor
----------------------------------------------------------------
Venture, Inc. and its affiliates seek approval from the U.S.
Bankruptcy Court for the Southern District of Mississippi to employ
Harper Rains Knight & Company, PA as financial advisor.
The firm will render these services:
(a) perform financial advisory services;
(b) seek competing bids for the Debtors' assets, handle any
resulting inquiries, due diligence, negotiations, and auction;
(c) manage banking accounts of the Debtors;
(d) report regarding cash collateral and any debtor financing
arrangements and budgets;
(e) provide financial accounting advice to assist with
reconciliation of account ledgers and accuracy of Debtors' books
and records;
(f) review of filings required by the Bankruptcy Court of the
Office of the U.S. Trustee;
(g) review of the Debtors' financial information;
(h) analyze assumption and rejection issues regarding
executory contracts and leases;
(i) assist in preparing and/or reviewing documents necessary
for confirmation of a Chapter 11 plan;
(j) advise and assist the Debtors in negotiations and meetings
with lenders and creditors;
(k) advise and assist the Debtors regarding tax consequences
of proposed actions;
(l) assist with the claims resolution process;
(m) provide expert witness report and testimony regarding the
financial affairs of the Debtors, confirmation issues, or other
matters;
(n) provide litigation consulting services and expert witness
testimony regarding confirmation issues, avoidance actions or other
matters;
(o) perform such other functions as requested by any Debtor or
counsel to assist in these Chapter 11 cases;
(p) terminate and liquidate any Debtors' retirement or pension
plans;
(q) prepare all federal and state corporate income tax
returns; and
(r) provide any assistance requested by the Debtors regarding
accounting for the inventory held for sale and for any other
tangible personal property.
The firm received a pre-petition retainer in the amount of
$12,500.
The hourly rates of the firm's professionals are as follows:
CPA, Director/Shareholder or Chief Executive $400
CPA Staff with 20+ Years as CPA $350
CPA Staff with 10-20 Years as CPA $300
CPA Staff with 5-10 Years as CPA $275
CPA Staff with 0-5 Years as CPA $250
Non-CPA Professional Accounting Staff $190
In addition, the firm will seek reimbursement for expenses
incurred.
Stephen Smith, CPA, a shareholder at Harper Rains Knight & Company,
disclosed in a court filing that the firm is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Stephen Smith, CPA
Harper Rains Knight & Company, PA
1052 Highland Colony Parkway, Suite 100
Ridgeland, MS 39157
Telephone: (601) 605-0722
Facsimile: (601) 605-0733
About Venture Inc.
Venture Inc. and its affiliates filed their voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Miss.
Lead Case No. 23-02186) on Sept. 22, 2023. In the petitions signed
by Daniel K. Myers, president, Venture Inc. disclosed up to $1
million in estimated assets and up to $10 million in total
liabilities.
Judge Jamie A. Wilson oversees the case.
The Debtors tapped Newman & Newman and the Law Offices of Craig M.
Geno, PLLC as counsel and Harper Rains Knight & Company, PA as
financial advisor.
VIASAT INC: S&P Places 'BB-' ICR on CreditWatch Negative
--------------------------------------------------------
S&P Global Ratings placed all its ratings on Viasat Inc., including
its 'BB-' issuer credit rating on CreditWatch with negative
implications.
S&P plans to resolve the CreditWatch shortly after the company's
third quarter earnings call in November 2023 and could lower
ratings if the magnitude of projected cash generation beyond 2025
is weaker than its initial expectations, or if the timing is
significantly delayed.
Viasat Inc. management plans to provide a more detailed update on
the status the Viasat-3 F-1 satellite anomaly and related
contingency plans in November 2023.
S&P said, "We believe the company's ability to generate meaningful
and sustained free operating cash flow (FOCF) after 2025 is
uncertain. We previously projected that Viasat would generate FOCF
to debt of at least 4%-5% in fiscal 2027 (ended March) and beyond,
prior to the F-1 anomaly." Following the anomaly, management
projected positive cash generation by the end of calendar 2025
(about six months later than they had anticipated). However, it
remains unclear whether Viasat will be able to achieve the same
level of FOCF as previously expected, particularly if F-1 is a
total loss.
Contingency plans are still being evaluated if F-1 is a total loss.
Management aims to determine the throughput of the F-1 satellite
around the time of earnings in November 2023. There are multiple
workstreams underway and more information needs to be gathered to
determine Viasat's operational mitigants. The company has
contingency plans that may include redeploying satellites from its
existing fleet to optimize global coverage or reallocating a
subsequent Viasat-3 satellite to provide bandwidth over North
America. These plans range from what the company could do if there
is little or no capacity to how it would respond if capacity is
close to what was originally expected.
This satellite was a critical component of the company's growth
strategy, as it was meant to have total throughput of about 1,000
gigabytes per second (Gbps) compared with 140 Gbps on Viasat-1 and
260 Gbps on Viasat-2. Most of the capacity from this satellite was
to be deployed in the North American fixed broadband market, which
is currently capacity constrained. S&P said, "We had previously
projected a modest return to growth in this segment (13% total
revenues) over the next two years assuming full capacity from F-1.
We believe a total loss scenario would likely delay a return to
growth by at least 18 months."
Execution risk has increased. The second very high throughput
Viasat-3 F-2 satellite uses the same antenna as F-1. Therefore, the
antenna supplier must apply corrective actions following root cause
analysis to ensure that a similar problem does not occur on the F-2
satellite. At a minimum, this will likely delay the planned launch
of F-2 by at least six months. S&P will also consider the risk of
another anomaly given the recent track record (Viasat-2 also
experienced an antenna problem in 2018 that reduced capacity by
about 15%) and reliance on a small number of very high throughput
satellites to add additional capacity. The third Viasat-3 satellite
does not use the same antenna.
Insurance will be more difficult to obtain longer-term. The company
also experienced an unexpected anomaly on the I6-F2 satellite (part
of the recently acquired Inmarsat fleet) in August 2023. While the
financial impact will be modest because this was primarily a backup
satellite, it was fully insured. Therefore, Viasat will potentially
be collecting two major claims in a short period of time, which
could make it significantly more expensive to obtain insurance for
future satellite launches, including Viasat-3 F-3, which is not yet
insured (F-2 is insured). Additionally, if insurance does prove to
be cost prohibitive, the company may choose to only partially
insure future launches, exposing financial results to the
possibility of further volatility.
CreditWatch
S&P said, "We plan to review our ratings once more details emerge
surrounding the status of the F-1 satellite and the company's
contingency plans to address lost capacity from the satellite
anomaly. The review will be focused on the company's ability to
obtain and sustain meaningful FOCF beyond 2025, incorporating
execution risk and uncertainties stemming from the F-1 anomaly. We
could lower ratings by one notch if the path toward achieving FOCF
to debt of 5% is less certain or more prolonged. Although less
likely, we could lower ratings by two notches if the projected cash
burn extends beyond fiscal 2026 (ending March)."
VICE GROUP: Hires Katten Muchin Rosenman LLP as Special Counsel
---------------------------------------------------------------
Vice Group Holding Inc. and its affiliates seek approval from the
U.S. Bankruptcy Court for the Southern District of New York to
employ Katten Muchin Rosenman LLP as special counsel.
The firm will provide legal counsel to the Independent Directors of
the Debtors in connection with these Chapter 11 cases, including
providing advice and representation with respect to the sale of
substantially all of the Debtors' assets and certain other matters
in connection therewith.
The firm will be paid at these rates:
Partners $945 to $1,985 per hour
Associates $625 to $1,000 per hour
Counsel $965 to $1,600 per hour
Paraprofessionals $310 to $720 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
In accordance with Appendix B-Guidelines for Reviewing Applications
for Compensation and Reimbursement of Expenses Filed under 11
U.S.C. Sec. 330 for Attorneys in Larger Chapter 11 Cases, the
following is provided in response to the request for additional
information:
Question: Did you agree to any variations from, or
alternatives to, your standard or customary billing
arrangements for this engagement?
Response: No.
Question: Do any of the professionals included in this
engagement vary their rate based on the geographic
location of the bankruptcy case?
Response: No.
Question: If you represented the client in the 12 months
prepetition, disclose your billing rates and
material financial terms for the prepetition
engagement, including any adjustments during the 12
months prepetition. If your billing rates and
material financial terms have changed postpetition,
explain the difference and the reasons for the
difference.
Response: Not applicable.
Question: Has your client approved your prospective budget
and staffing plan, and, if so for what budget
period?
Response: Yes, for the period from July 21, 2023 through
September 30, 2023.
Steven J. Reisman, a partner at Katten Muchin Rosenman LLP,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
The firm can be reached through:
Steven J. Reisman, Esq.
KATTEN MUCHIN ROSENMAN, LLP
50 Rockefeller Plaza
New York, NY 10020-1605
Office: (212) 940-8700
Mobile: (212) 961-6688
Email: sreisman@katten.com
About Vice Group Holding
Vice is a global, multi-platform media company with a collection of
powerful brands, producing premium award-winning content for a
highly engaged global youth audience. It creates thousands of
pieces of content each week globally, including editorial, digital
and social video, experiential events, commercials, music videos,
scripted and unscripted television, feature documentaries, and
movies.
Vice Group Holding, Inc. and its affiliates sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No.
23-10738) on May 15, 2023. At the time of the filing, the Debtors
reported $500 million to $1 billion in both assets and
liabilities.
Judge John P. Mastando III oversees the cases.
The Debtors tapped Togut, Segal & Segal, LLP as bankruptcy counsel;
Shearman & Sterling, LLP as special counsel; PJT Partners, Inc. and
Liontree Advisors, LLC as financial advisors; and AP Services, LLC
as restructuring advisor. Frank Pometti of AP Services serves as
the Debtors' chief restructuring officer. Stretto, Inc. is the
claims and noticing agent and administrative advisor.
The U.S. Trustee for Region 2 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases. The
committee tapped Pachulski Stang Ziehl & Jones, LLP as legal
counsel and Alvarez & Marsal North America, LLC as financial
advisor.
WHEELS UP: Lee Moak Replaces Erik Snell as Director
---------------------------------------------------
Erik Snell notified the Board of Directors of Wheels Up Experience
Inc. of his resignation from the Board, effective immediately.
The departure of Mr. Snell is not related to any disagreement with
the Company or the Board regarding any matter related to the
Company's operations, policies or practices, as disclosed by the
Company in a Form 8-K filed with the Securities and Exchange
Commission.
In order to fill the vacancy on the Board following the resignation
of Mr. Snell, on Sept. 26, 2023, the Board resolved to appoint Lee
Moak to the Board, effective as of Sept. 26, 2023. As a Class III
director, Mr. Moak will have an initial term as a director until
the 2024 annual meeting of the Company's stockholders and his
successor is duly elected and qualified.
Mr. Moak, age 66, currently serves as chief executive officer of
Intrepid LLC, a business consulting firm he co-founded in January
2015. Previously, Mr. Moak was a Boeing 767 Captain at Delta Air
Lines, Inc., for whom he served as a pilot from 1988 until 2014,
and was president and chief operating officer of the Air Line
Pilots Association from 2010 until 2014. He began his career by
attending the United States Marine Corps Officer Candidate School
in 1977, and later became a Marine Corps and Navy fighter pilot,
retiring from military service in 2001 after holding the ranks of
Captain in the United States Marine Corps and Commander in the
United States Navy. Mr. Moak currently serves on the United States
Postal Service Board of Governors, an appointment he has held since
being confirmed by the United States Senate on June 18, 2020, and
will continue to hold until the end of his appointment on Dec. 8,
2023. He currently chairs the USPS Board of Governors'
Compensation and Governance Committee and serves on the Audit and
Finance Committee. Mr. Moak has also served on the Board of
Directors of Grupo Aeromexico S.A.B. de C.V. since March 2022 and
the Board of Directors of Reliable Robotics Corporation since April
2023. He also served on the AFL-CIO Executive Council and
Financial Oversight Committee for the AFL-CIO Transportation Trades
Department, had a seat on the U.S. Federal Aviation Administration
NextGen Advisory Committee, and was a member of the FAA Management
Advisory Council on management, policy, spending and regulatory
matters. Mr. Moak earned his bachelor's degree from the University
of West Florida.
Mr. Moak was appointed to the Board pursuant to the Investment and
Investor Rights Agreement, dated as of Sept. 20, 2023, by and
among, inter alia, the Company and Delta Air Lines, Inc., as a
Delta Director (as defined in the Investor Rights Agreement);
provided, that he is not a party to such agreement in his
individual capacity. Otherwise, there are no arrangements or
understandings between Mr. Moak and any other person pursuant to
which he was appointed to serve on the Board.
In addition, the Board appointed Adam Zirkin as Chairperson of the
Board, effective as of Sept. 20, 2023, and redetermined Board
committee assignments as follows: (i) each of Andrew Davis (Chair),
Timothy Armstrong and Lee Moak will serve on the Audit Committee of
the Board; (ii) each of Adam Zirkin (Chair), David Adelman and
Zachary Lazar will serve on the Compensation Committee of the
Board; (iii) each of Jeffrey Nedelman (Chair), Timothy Armstrong
and Adam Cantor will serve on the Nominating and ESG Committee of
the Board; and (iv) each of Lee Moak (Chair), Alain Bellemare and
Adam Zirkin will serve on the Safety and Security Committee of the
Board.
About Wheels Up
Headquartered in New York, Wheels Up is a provider of on-demand
private aviation in the U.S. and one of the largest private
aviation companies in the world. Wheels Up offers a complete
global aviation solution with a large, modern and diverse fleet,
backed by an uncompromising commitment to safety and service.
Customers can access membership programs, charter, aircraft
management services and whole aircraft sales, as well as unique
commercial travel benefits through a strategic partnership with
Delta Air Lines. Wheels Up also offers freight, safety and
security solutions and managed services to individuals, industry,
government and civil organizations.
Wheels Up reported a net loss of $555.55 million in 2022, a net
loss of $197.23 million in 2021, and a net loss of $85.40 million
in 2020.
Wheels Up said in its Form 10-Q for the period ended June 30, 2023,
that "The Company had cash and cash equivalents of $151.8 million
and a working capital deficit of $720.8 million as of June 30,
2023. Net cash used in operating activities was $411.7 million for
the six months ended June 30, 2023, and the Company has experienced
recurring losses from operations for the six months ended June 30,
2023. Further, the Company's Note Purchase Agreement and the
Indentures...and related guarantees contain a liquidity covenant
that requires the Company to maintain minimum Adjusted Available
Liquidity of $125.0 million as of the end of each fiscal quarter,
and the Company's Letter Agreement contains a liquidity covenant
that requires the Company (excluding Air Partner Limited and its
subsidiaries) to maintain available cash of at least $5.0 million
on any date...These conditions, as well as current cash and
liquidity projections, raise substantial doubt about our ability to
continue as a going concern for any meaningful period of time after
the date of this filing."
WINDSOR TERRACE: New Debtors Get $1MM DIP Loan from RT Lending
--------------------------------------------------------------
Windsor Terrace Healthcare, LLC and affiliates sought and obtained
interim authority from the U.S. Bankruptcy Court for the Central
District of California, San Fernando Valley Division, to use cash
collateral and obtain post-petition financing.
The Debtor has obtained post-petition financing in the aggregate
principal amount not to exceed $1 million from RT Lending, LLC.
The Lender agreed to provide a DIP Loan of up to $6.5 million to
the Original Debtors, which has been approved by the Court on an
interim basis.
Fortunately, the Lender has also agreed to provide the New Windsor
Debtors with a DIP Loan pursuant to the terms and conditions of the
DIP Agreement.
The DIP Loan is an interest-free loan, but, if any of the DIP Loan
is advanced as urgently needed funding, and should the New Windsor
Debtors determine that their respective cash flow supports
repayment, the New Windsor Debtors will be authorized to repay the
obligations under the DIP Loan, in whole or in part, at their
discretion.
While there are 19 separate Chapter 11 Debtors, the Debtors
essentially operate as one consolidated business entity. In
addition to having common ownership, the Debtors have common
creditors. Many of the largest unsecured creditors in these cases
are common creditors of many of the Debtors. Additionally, all of
the Debtors are co-borrowers under a common pre-petition credit
arrangement with secured creditor Midcap Funding IV Trust, as
Agent.
In addition to having approximately $68.7 million of collective
pre-bankruptcy general unsecured debt, there are a multitude of
asserted litigation claims with unknown liabilities, and more
litigation claims are anticipated to be asserted in the future.
Currently, there are 70 lawsuits filed against the Debtors, and the
Debtors anticipate that, absent the bankruptcy cases, the number of
lawsuits could well be over 100 with claims exceeding tens of
millions of dollars over the next few years. The current lawsuits
(and future lawsuits) have also placed significant financial and
operational burdens on the Debtors.
The Administrative Company (and the Debtors' owners) assumed
control over the administrative services of the facilities on or
around March 1, 2023, and the Debtors' owners acquired the
ownership of the Debtors on or around July 1, 2023.
After taking over, the Debtors have gained operational and economic
stability, and the Debtors are highly confident of their ability to
successfully reorganize. However, the Debtors have no economic
ability to pay their massive amount of pre-petition debt at this
time and to absorb the enormous costs of defending against the
numerous outstanding pre-petition litigation matters, all of which
were incurred while the Debtors were under prior ownership and
management.
As of the Petition Date, the Debtors estimate that they
collectively have approximately $4.2 million of accounts receivable
and approximately $30,000 of operating cash, for total AR and Cash
assets of approximately $4.5 million.
Under the prior ownership and management, starting in 2017, the
Debtors were borrowers of MidCap under a secured revolving line of
credit agreement; as a result, all of the Debtors' personal
property assets -- with the exception of the personal property
assets of the Debtor, Windsor Elk Grove and Rehabilitation, LLC --
were subject to existing liens in favor of MidCap, as reflected, in
part, by UCC financing statements recorded by MidCap against these
Debtors at the time the current owners acquired the Debtors and
their respective facilities.
On June 30, 2023, the New Windsor Debtors were removed from the
MidCap credit agreement, and the Debtors entered into a "Credit and
Security Agreement," dated June 30, 2023, with Oxford Finance LLC,
as Agent and related agreements pursuant to which the New Windsor
Debtors obtained primary funding to operate their respective
facilities. The Oxford Loan Agreements provide the New Windsor
Debtors with a revolving line of credit up to $3 Million, with
advances tied to a borrowing formula set forth in the Oxford Loan
Agreements. The Oxford Loan Agreements grant to Oxford a security
interest and lien upon all personal property of the New Windsor
Debtors to secure their obligations, and Oxford has recorded UCC
financing statements, to perfect their liens upon such assets. The
obligations of the New Windsor Debtors to Oxford were also
guaranteed by many non-debtor affiliates. Prior to the Petition
Date, the New Windsor Debtors stopped receiving advances from
Oxford under the Oxford Loan Agreements; thus, as of the Petition
Date, the New Oxford Debtors did not owe any money to Oxford under
the Oxford Loan Agreements.
As adequate protection for the Debtors' use of cash collateral, the
Debtors propose to provide to the Secured Creditors valid,
enforceable, non-avoidable and fully perfected replacement liens
on, and security interests in the assets of the New Windsor Debtors
and super-priority administrative expense priority claims solely
against the New Windsor Debtors' estates against which the Secured
Creditors may be determined to have allowed secured claims, with
priority over any and all administrative expenses and claims
asserted against such estates pursuant to 11 U.S.C. Section 507(b)
to the extent of any post-petition diminution in value in the
Secured Creditors' respective interests in the New Windsor Debtor's
pre-petition collateral.
A hearing on the matter was held October 5, 2023 at 1:30 p.m.
A copy of the motion is available at https://urlcurt.com/u?l=XyqAMZ
from PacerMonitor.com.
About Windsor Terrace Healthcare, LLC
Windsor Terrace Healthcare, LLC are primarily engaged in the
businesses of owning and operating skilled nursing facilities
throughout the State of California. Collectively, the Debtors own
and operate 16 skilled nursing facilities, which provide 24 hour, 7
days a week and 365 days a year care to patients who reside at
those facilities. In addition to the 16 skilled nursing
facilities, the Debtors own and operate one assisted living
facility (which is Windsor Court Assisted Living, LLC), one home
health care center (which is S&F Home Health Opco I, LLC), and one
hospice care center (which is S&F Hospice Opco I, LLC). The
Debtors do not own any of the real property upon which the
facilities are located.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Lead Case No. 23-11200) on Aug.
23, 2023. Windsor Sacramento Estates, LLC and Windsor Hayward
Estates, LLC filed Chapter 11 petitions on Sept. 29.
In the petitions signed by Avrohom Tress, manager, the Debtors
disclosed up to $10 million in both assets and liabilities.
Judge Victoria S. Kaufman oversees the case.
Ron Bender, Esq., Monica Y. Kim, Esq., and Juliet Y. Oh, Esq. at
Levene, Neale, Bender, Yoo, and Golubchik LLP, represent the Debtor
as legal counsel. Stretto, Inc. is the Debtor's claims, noticing
and solicitation agent.
WYATT LLC: Brian Rothschild Named Subchapter V Trustee
------------------------------------------------------
The U.S. Trustee for Region 19 appointed Brian Rothschild, Esq., as
Subchapter V trustee for The Wyatt, LLC.
Mr. Rothschild, an attorney at Parsons Behle & Latimer, will be
paid an hourly fee of $430 for his services as Subchapter V trustee
and will be reimbursed for work-related expenses incurred.
Mr. Rothschild 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 M. Rothschild, Esq.
Parsons Behle & Latimer
201 South Main Street, Suite 1800
Salt Lake City, UT 84111
Phone: (801) 532-1234
Email: brothschild@parsonsbehle.com
About The Wyatt LLC
The Wyatt, LLC is a single asset real estate debtor (as defined in
11 U.S.C. Section 101(51B)). The company is based in Murray, Utah.
Wyatt filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. D. Utah Case No. 23-24195) on Sept. 20,
2023, with $1 million to $10 million in both assets and
liabilities. John Belcher, authorized representative, signed the
petition.
Roger A. Kraft, Esq., at Roger A. Kraft Attorney at Law, P.C.
represents the Debtor as bankruptcy counsel.
[*] Bankruptcy Filings Up in Third Quarter 2023
-----------------------------------------------
According to Data compiled by New Generation Research's
BankruptcyData, Bankruptcy Filings as of the end of the Quarter
ended September 31, 2023, totaled 7518 year to date. This is the
highest rate of bankruptcy since 2020, up sharply from last year.
The total number of filings YTD in 2023 exceeds all filings for
both 2021 and 2022, and is on a pace which rivals the activity of
2020, itself was a record year unequaled since the days of the
Global Financial Crisis.
Even more telling, the pace of Public and Large Private company
filings has accelerated sharply in 2023 versus prior years. So far
in 2023, there have been such filings versus 383 for all of 2022,
an increase of over 70%, and there are still three months to go in
2023. Also, the number of companies doing a round trip to
Bankruptcy court among public and large private companies has risen
markedly in 2023. Where last year there were 20 Chapter 22 cases
all year, so far in 2023 there have been 21 repeat filers (2 of
which are Chapter 33s).
The pace of filings has been trending upwards during the course of
the year as the graph below indicates. Filings per month peaked in
May but have remained substantially higher than early in the year.
The tenacity of higher interest rates and inflation seem to be
driving this increase.
Looking at jurisdictions by state and bearing in mind that 2023
numbers are YTD and compared in the table at right to full year
2022 numbers, California leads as the state with the greatest
number of filings, followed by New York and Texas. Texas and New
York flipped their roles relative to the previous year.
Every state is ahead of last year's total number of business
filings for the full year, and this pattern extends to all 50
states.
It is likely to be a banner year for bankruptcy professionals. Of
note is the increase in non-US jurisdictions, reflective of a
larger volume of Chapter 15 activity so far this year.
TOP INDUSTRIES EXPERIENCEING BANKRUPTCY FILINGS
The top 3 industries for Bankruptcy YTD in terms of filings are in
the Real Estate sector at 16.1%, Healthcare and Medical at 11.6%
and Construction and Supplies. This trio typically tops the list,
though the Healthcare industry share has increased in 2023 relative
to 2022. The top real estate filings so far in 2023 have both been
Chinese origin Chapter 15s, which by assets, represent the 2
largest filings of the year so far.
DISTRESSED SITUATIONS ARE ALSO ON THE RISE
BankruptcyData maintains a watchlist of companies exhibiting signs
of distress. As with business bankruptcy filings, we have seen a
clear increase in the volume of companies triggering our screens.
The number of distressed situations we are monitoring is up 34%
this year (2023 YTD) over the full year 2022.
PROFESSIONAL RETENTIONS
BankruptcyData publishes a quarterly update on professional
engagements and these following numbers refer only to debtor side
engagements. This last quarter the Top three Law Firms by retention
have been Pachulski, McDermott Will & Emery, And Morris James. This
includes local counsel engagements.
Pachulski leads the Year-to-Date leaderboard as well, followed by
Young Conaway and Jackson Walker. Notable engagements for Pachulski
include Yellow Corporation, Amyris, Inc., PGX Holdings, and
Monitronics International.
Young Conaway's notable cases include Capstone Energy, Amyris (as
local bankruptcy counsel) and Desolation Holdings (Bittrex) in the
crypto sector. Meanwhile Jackson Walker's largest engagements
included Diebold Holdings, Genesis Care, Envision Healthcare,
National CineMedia, and Diamond Sports Groups.
The most engaged Financial Advisors to date have been FTI, Dundon
and Alvarez and Marsal. FTI scored with Smile Direct, Yellow
Corporation, Western Global Airlines among others. Dundon
engagements were on the smaller end of the spectrum, with Lannett
Company being the largest case by Liabilities. Alvarez and Marsal
reaped fewer cases, but notable larger filings included Vice Media,
Envision Healthcare, Wesco Aircraft Holdings and PGX holdings. Had
the rankings been tabulated by Liabilities, A&M would have topped
the advisor league tables.
The top 3 investment banks YTD were Jefferies LLC with 9
engagements, Moelis & Company and Houlihan Lokey Inc. tied for
second with 8 each, and Guggenheim Securities, LLC with 7.
Jefferies top engagements included Qualtek Services, Benefytt
Technologies and Amyris, Inc. The Moelis engagements may have been
just shy of Jefferies, but arguably included larger filings,
including Venator Materials, Diamond Sports Group and Party City
Holdco, Inc. Houlihan Lokey meanwhile tallied Sunac China Holdings,
Yellow Corporation, Diebold Holding Company and Genesis Care Pty
Ltd.
Top cases for Guggenheim included Mallinckrodt' Chapter 22,
Kidde-Fenwal Inc., and the high-profile Bed Bath and Beyond case.
Interestingly, the largest case of the year so far, China
Evergrande Group, employed as of this writing no Investment Bank.
The highest approved fee applications this year for Investment
Banks went to Evercore Partners, who billed $26.75 million in court
approved fees for their work in 2022's Talen Energy Case.
Full league tables and fee application data are available on
BankruptcyData.com.
Of the environment this year, BankruptcyData's Head of Research,
Nick Montgomery noted, "There has been a relative dearth of
blockbuster filings, with most activity in the middle market. One
interesting trend is an anecdotal increase in dismissal/conversion
motions or orders filed over the last two weeks. There have been
seven, five of which relate to post-asset sale debtors. The other
two are illustrative of a hard pragmatism we are seeing . . . .
where financing dries up, and patience quickly runs out. As to the
asset sales, I think a legitimate 20,000ft assessment is that sale
proceeds are not hitting expectations, leaving top-level secured
creditors impaired and the game pretty evidently over as to
everyone else."
[] Kirkland, Foley Co-Chair Nov 29 Distressed Investing Conference
------------------------------------------------------------------
Registration remains open for the 30TH DISTRESSED INVESTING
CONFERENCE presented by Beard Group, Inc. This year's conference
will be held Wed., Nov. 29, in-person at the Harmonie Club in
Manhattan.
The event is being sponsored by:
* Kirkland & Ellis and Foley & Lardner, as conference
co-chairs
* Davis Polk
* Dechert
* Dentons
* DSI
* Locke Lord
* RJReuter
* Skadden
* SSG
* Stein Advisors
* Troutman Pepper
* Wachtell Lipton Rosen & Katz
* Weil Gotshal
Top industry experts gather together to discuss the latest topics
and trends in the distressed investing industry. Now on its 30th
year, this value-packed event features special presentations from
keynote speakers, live panel discussions and networking sessions
with other insolvency professionals.
Visit https://www.distressedinvestingconference.com for more
information.
For conference sponsorship and speaking opportunities, contact:
Will Etchison
305-707-7493
Will@BeardGroup.com
[^] BOOK REVIEW: TAKING CHARGE: Management Guide to Troubled
-------------------------------------------------------------
TAKING CHARGE: Management Guide to Troubled Companies and
Turnarounds
Author: John O. Whitney
Publisher: Beard Books
Softcover: 283 Pages
List Price: $34.95
Order a copy today at:
http://beardbooks.com/beardbooks/taking_charge.html
Review by Susan Pannell
Remember when Lee Iacocca was practically a national hero? He won
celebrity status by taking charge at a company so universally known
as troubled that humor columnists joked their kids grew up thinking
the corporate name was "Ayling Chrysler." Whatever else Iacocca may
have been, he was a leader, and leadership is crucial to a
successful turnaround, maintains the author.
Mediagenic names merit only passing references in Whitney's book,
however. The author's own considerable experience as a turnaround
pro has given him more than sufficient perspective and acumen to
guide managers through successful turnarounds without resorting to
name-dropping. While Whitney states that he "share[s] no personal
war stories" in this book, it was, nonetheless, written from inside
the "shoes, skin, and skull of a turnaround leader." That sense of
immediacy, of urgency and intensity, makes Taking Charge compelling
reading even for the executive who feels he or she has already
mastered the literature of turnarounds.
Whitney divides the work into two parts. Part I is succinctly
entitled "Survival," and sets out the rules for taking charge
within the crucial first 120 days. "The leader rarely succeeds who
is not clearly in charge by the end of his fourth month," Whitney
notes. Cash budgeting, the mainstay of a successful turnaround, is
given attention in almost every chapter. Woe to the inexperienced
manager who views accounts receivable management as "an arcane
activity 'handled over in accounting.'" Whitney sets out 50
questions concerning AR that the leader must deal with -- not
academic exercises, but requirements for survival.
Other internal sources for cash, including judiciously managed
accounts payable and inventory, asset restructuring, and expense
cuts, are discussed. External sources of cash, among them banks,
asset lenders, and venture capital funds; factoring receivables;
and the use of trust receipts and field warehousing, are handled in
detail. Although cash, cash, and more cash is the drumbeat of Part
I, Whitney does not slight other subjects requiring attention. Two
chapters, for example, help the turnaround manager assess how the
company got into the mess in the first place, and develop
strategies for getting out of it.
The critical subject of cash continues to resonate throughout Part
II, "Profit and Growth," although here the turnaround leader
consolidates his gains and looks ahead as the turnaround matures.
New financial, new organizational, and new marketing arrangements
are laid out in detail. Whitney also provides a checklist for the
leader to use in brainstorming strategic options for the future.
Whitney's underlying theme -- that a successful business requires
personal leadership as well as bricks and mortar, money and
machinery -- is summed up in a concluding chapter that analyzes the
qualities that make a leader. His advice is as relevant in this
1999 reprint edition as it was in 1987 when first published.
*********
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 ***