/raid1/www/Hosts/bankrupt/TCR_Public/231204.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Monday, December 4, 2023, Vol. 27, No. 337
Headlines
133-24 REALTY: Case Summary & One Unsecured Creditor
1457 N PRIEUR: Hires James A. Graham LLC as Bankruptcy Counsel
1600 E. BUTLER: Hires Cushman & Wakefield as Real Estate Broker
162 UTICA AVE: Voluntary Chapter 11 Case Summary
204 HOOPER: Voluntary Chapter 11 Case Summary
245 S WESTLAKE: Voluntary Chapter 11 Case Summary
365 S4 ST LLC: Unsecureds Will Get 10% of Claims over 5 Years
4D FACTORY: Seeks to Hire Spence Law Office as Bankruptcy Counsel
502 E JED: Seeks to Hire Pick & Zabicki as Special Counsel
751 ST. NICHOLAS: Seeks to Tap Leo Fox as Bankruptcy Attorney
AAD LOCKER: Hires Strip Hoppers Leithart as Bankruptcy Counsel
ACME HOLDINGS: Selling Batavia Property for $600,000
AEROSPACE ENGINEERING: Court OKs Continued Cash Collateral Access
AKRON REBAR: Updates Unsecured Claims; Files Amended Plan
AKUMIN INC: Stonepeak Take-Private Deal Okayed by Judge
ALEXA & ROGER: Voluntary Chapter 11 Case Summary
ALLIANCE PARTNERS: Amends Unsecured Claims Pay Details
AMERICAN ROOFING: Case Summary & 13 Unsecured Creditors
AMERICANAS SA: Vibra Pays BRL192m, Ends JV
AMERITRANS EXPRESS: Hires Armooh Williams as Special Counsel
AMYRIS INC: Seeks to Hire Michel-Shaked Group as Expert Consultant
ANAGRAM HOLDINGS: Hires Robert W. Baird & Co. as Investment Banker
ARC MANAGEMENT: Files Emergency Bid to Use Cash Collateral
ARCIMOTO INC: Receives Nasdaq Notice of Late 10-Q Filing
ARCITERRA COMPANIES: Voluntary Chapter 11 Case Summary
ARK LABORATORY: Court OKs Cash Collateral Use on Final Basis
ARTISAN MASONRY: Case Summary & 20 Largest Unsecured Creditors
ATLAS CAPITAL: Seeks to Hire Buddy D. Ford as Bankruptcy Counsel
AVE P DELI: Seeks to Hire Wisdom Professional as Accountant
AVENUE DC: Seeks to Hire McNamee Hosea as Bankruptcy Counsel
BED BATH & BEYOND: Says Mediterranean Shipping Owes $315 Million
BH&G HOLDINGS: Hires Armstrong Teasdale as Bankruptcy Counsel
BISHOP OF OAKLAND: Seeks to Extend Plan Exclusivity to May 6, 2024
BOULDER CANYON: Unsecureds Get Paid From Sale of Properties in Plan
BRISTOL SPRINGS: Seeks to Hire Amore Law as Bankruptcy Counsel
BRISTOL SPRINGS: Seeks to Hire Betty Hogenthorp as Manager
BRISTOL SPRINGS: Seeks to Hire Charles D. Hogenthorp as Director
BRISTOL SPRINGS: Taps Charles D. Hogenthorp as Site Supervisor
BROOKLYN PARK: Seeks to Extend Plan Soliciation to January 25, 2024
BRYANT PORTABLE: Seeks to Hire Ahlgren Law Office as Counsel
BUSHWICK BEER: Has Deal on Cash Collateral Access
CARVANA CO: S&P Assigns 'CCC+' Rating on Senior Secured Debt
CENTRAL NEW YORK RACEWAY: Taps Maltz Auctions as Real Estate Agent
CENTRAL OKLAHOMA: No Supply Concerns, PCO Report Says
CITY EATS: Seeks to Hire Kelley & Clements as Bankruptcy Counsel
CLOVER FAST FOOD: Court OKs Cash Collateral Access on Final Basis
COHERENT CORP: Fitch Affirms 'BB' LongTerm IDR, Outlook Stable
COMPLIANCE TESTING: Taps Cunningham & Associates as Appraiser
CONNEXA SPORTS: Posts $1.8 Million Net Income in Second Quarter
CORRELATE ENERGY: Incurs $3.4 Million Net Loss in Third Quarter
COSMOS GROUP: Posts $49.8 Million Net Loss in Third Quarter
CROWN EUROPEAN: Moody's Rates New Senior Unsecured Notes 'Ba1'
CROWN EUROPEAN: S&P Assigns New EUR400MM Unsecured Notes 'BB+'
CUENTAS INC: Registers 1.3 Million Shares for Potential Resale
DIAMOND OFFSHORE: S&P Assigns 'B' ICR, Outlook Stable
DIAMOND SCAFFOLD: Court OKs Cash Collateral Use Thru Feb 2024
DIAMOND SPORTS: Seeks to Extend Plan Exclusivity to March 28, 2024
DIOCESE OF SAN FRANCISCO: Comm Taps Burns Bair as Insurance Counsel
DIVERSIFIED PANELS: Cannabis Panels Provider Hits Chapter 11
DMK PHARMACEUTICALS: Regains Full Rights for SYMJEPI From USWM
DW TRUMP: Unsecured Claims Are Unimpaired in Plan
EAGLE BEAR: Plan to Provide Full Payment for All Claims
EASTGATE WHITEHOUSE: Hires Cullen and Dykman as Bankruptcy Counsel
EMERGENT BIOSOLUTIONS: Receives $75M Contract Option From BARDA
ENVIVA INC: Incurs $85.2 Million Net Loss in Third Quarter
EQUALTOX LLC: Hires Smiley Wang-Ekvall as Bankruptcy Counsel
EQUALTOX LLC: Lender Seeks to Prohibit Cash Collateral Access
FTAI AVIATION: Moody's Assigns 'Ba2' CFR, Outlook Negative
FTX GROUP: Gets Clearance to Begin $744-Mil. Grayscale Assets Sale
FTX TRADING: Eversheds & Morris Update Ad Hoc Committee Members
GDB HOLDINGS: Seeks to Hire Allen Vellone as Bankruptcy Counsel
GENESIS ENERGY: Moody's Rates New Senior Unsecured Notes 'B3'
GENESIS ENERGY: S&P Rates $550MM Senior Unsecured Notes 'B'
GENESIS GLOBAL: McDermott Updates List of Genesis Crypto Creditors
GLOBAL FERTILITY: PCO Reports No Change in Patient Care Quality
GLOBAL SOURCING: Seeks to Hire Gensburg Calandriello as Attorney
GOLDEN INDUSTRIAL: Taps Jacqueline I. Rivera Gonzalez as Accountant
GP INC: Seeks Approval to Hire Allen Vellone as Bankruptcy Counsel
GREENWAVE TECHNOLOGY: Has 45 Days to Submit Nasdaq Compliance Plan
GUARDIAN FUND: Examiner Hires Golden Goodrich as Assistant
GUY B. HENDRIX: Voluntary Chapter 11 Case Summary
HAL LUFTIG: Unsecureds Will Get 15% to 25% of Claims Over 5 Years
HALF LION BREWING: Court OKs Cash Collateral Access Thru Dec 18
HANESBRAND INC: Moody's Cuts CFR to 'B1', Outlook Negative
HARLEM PROPERTIES: Voluntary Chapter 11 Case Summary
HENDRIX FARMING: Voluntary Chapter 11 Case Summary
IBIO INC: Board Approves 20-to-1 Reverse Common Stock Split
IMAGINE SCHOOL: Moody's Cuts Rating on 2020A Education Bonds to Ba2
INVERSIONES LATIN AMERICA: Case Summary & 30 Top Unsec. Creditors
INVESTMENT PROPERTIES: Hires O'Connor Playdon Guben as Counsel
IRONNET INC: $10MM DIP Loan from ITC Global OK'd
ITALIAN GRILLE: Seeks Approval to Hire Timothy Eplion as Manager
J.E.H. PROPERTIES: Amends Merchants Secured Claim Pay Details
JSMITH CIVIL: Bankruptcy Administrator Unable to Appoint Committee
KC TRUCKING: Seeks to Hire Gold Weems Bruser as Bankruptcy Counsel
KOFC LTD: Seeks to Hire Villa & White as Bankruptcy Counsel
LBU FRANCHISES: Seeks Cash Collateral Access, DIP Loan from Fox
LIFOD HOME: No Patient Care Complaints, 1st PCO Report Says
LOYALTY EXPRESS: Hires Christian & Small as Bankruptcy Counsel
MACHINE TOOL: Seeks to Hire Norman J. Gallivan as Auctioneer
MACHINE TOOL: Taps Whitney Gurman-Roberts as Real Estate Broker
MARINE WHOLESALE: Seeks Cash Collateral, $305,000 DIP Loan
MERCY HOSPITAL: PCO Reports No Decline in Patient Care Quality
MICHIGAN MEDICAL: Doctor, Medical Practice File for Chapter 11
MILL 407: Voluntary Chapter 11 Case Summary
MONICATTI AUTO: Court OKs Bid Rules for Double Vision Property Sale
MVK FARMCO: Asset Sale Proceeds to Fund Plan
MVK FARMCO: Committee Hires Gellert Scali as Delaware Counsel
MVK FARMCO: Committee Hires Lowenstein Sandler as Lead Counsel
NATIONAL PAVER: Court OKs Cash Collateral Access on Final Basis
NATURALSHRIMP INC: Incurs $2.65 Million Net Loss in Second Quarter
NC GAS HOUSE: Voluntary Chapter 11 Case Summary
NEKTAR THERAPEUTICS: Granted 180 Days to Regain Nasdaq Compliance
NEKTAR THERAPEUTICS: Incurs $45.8 Million Net Loss in Third Quarter
NEW HAVEN TRUCK: Court OKs Cash Collateral Access Thru Dec 31
NICNAT LLC: Taps Hiltz Zanzig & Heiligman as Bankruptcy Counsel
NXT ENERGY: Releases Third Quarter 2023 Results
OAK-BARK CORP: Seeks to Hire Oliver & Cheek as Bankruptcy Counsel
OFFICE PROPERTIES: Moody's Lowers CFR to 'Caa1', Outlook Negative
ORLANDO VIEWS: U.S. Trustee Unable to Appoint Committee
OU MEDICINE: Moody's Alters Outlook on 'Ba3' Rating to Positive
PACTIV EVERGREEN: Moody's Hikes CFR to B1, Outlook Remains Stable
PARK NORTH 1: Voluntary Chapter 11 Case Summary
PEAK TAHOE: Seeks to Hire Peak Tahoe Realty as Real Estate Broker
PENNSYLVANIA REAL ESTATE: Continues Talks with Lender Group
PERSONALIZED HEALTH: Hires Neeleman Law Group as Legal Counsel
PLANET HOME: Moody's Affirms 'B2' CFR, Outlook Remains Stable
POLARIS OPERATING: $3MM DIP Loan from Mesa Vista Has Final OK
POTRERO MEDICAL: Court OKs $2.5MM DIP Loan from Potrero Lender
PPWC ENTERPRISES: Hires Roderick Linton as Bankruptcy Counsel
PREDICTIVE TECHNOLOGY: Taps CFO Solutions as CRO and Accountant
PREMIER KINGS: Court OKs Bid Rules for Sale of Burger King Stores
QUALITY IRON: Seeks Court Nod to Sell Assets by Auction
QUEST PATENT: Has Going Concern Doubt, Cites Continuing Losses
QUEST PATENT: Incurs $833K Net Loss in Third Quarter
RED ROOF: Seeks to Hire Tang & Associates as Bankruptcy Counsel
RESOURCE FOR EDUCATION: Court OKs Interim Cash Collateral Access
RUBY-GORDON INC: Bid to Use Cash Collateral Denied
RUSS NOYES ROOFING: Case Summary & 11 Unsecured Creditors
SANIBEL REALTY: Unsecureds Will Get 1.0% of Claims over 5 Years
SBG BURGER: Seeks to Hire Underwood Murray as Bankruptcy Counsel
SCHARN INDUSTRIES: Wins Cash Collateral Access Thru Feb 2024
SELECTIS HEALTH: Incurs $2.3 Million Net Loss in Third Quarter
SELECTIS HEALTH: Raises Going Concern Doubt
SHEM OLAM: Seeks to Extend Plan Exclusivity to January 25, 2024
SHORT FORK: Voluntary Chapter 11 Case Summary
SONOMA PHARMACEUTICALS: Incurs $1.5 Million Net Loss in 2nd Quarter
STARR CLEANING: Court OKs Cash Collateral Access Thru Jan 2024
SUD'S CLUB: Unsecured Creditors to be Paid in Full over 3 Years
SUPOR PROPERTIES: Trustee Taps McManimon Scotland as Attorney
SWEETWATER GOLF: Seeks to Hire Shuker & Dorris as Legal Counsel
TERRESTRIAL BREWING: Case Summary & 16 Unsecured Creditors
TKC HOLDINGS: Moody's Alters Outlook on 'Caa1' CFR to Stable
TRINITY REGIONAL HOSPITAL: Hospital Purchased by HCA Healthcare
UP RIGHT: Unsecureds Will Get 4% of Claims over 36 Months
VERITAS HOLDINGS: S&P Downgrades ICR to 'CCC+', Outlook Negative
VESTTOO LTD: Seeks to Hire Ballard Spahr as Conflicts Counsel
VIDEO RIVER: Has Going Concern Doubt, Cites $15.7MM Deficit
VPR BRANDS: Posts $2.95 Million Net Income in Third Quarter
VYCOR MEDICAL: Raises Going Concern Doubt, Sees Cash Crunch
WEWORK INC: SEC Sues ArciTerra, CEO for Fraud
WHITETAIL DEVELOPMENT: Taps Demarco Mitchell as Bankruptcy Counsel
WINDSOR TERRACE: Committee Taps Province LLC as Financial Advisor
WINDSOR TERRACE: No Patient Care Concern, 1st PCO Report Says
WINTERFELL CONSTRUCTION: Amends Unsecured Claims Pay
YAK TIMBER: Jan. 10 Hearing on Disclosures and Plan
YC RIVERGOLD: Seeks to Extend Plan Exclusivity to March 31, 2024
YUNHONG GREEN: Says Continued Losses Raises Going Concern Doubt
ZOHAR: Lynn Tilton to Pay $40-Mil. Transcare Fraudulent Transfer
[] Claims Trading Report -- November 2023
[^] BOND PRICING: For the Week from Nov. 27 to Dec. 1, 2023
*********
133-24 REALTY: Case Summary & One Unsecured Creditor
----------------------------------------------------
Debtor: 133-24 Realty Inc.
133-33 Sanford Avenue, #3G
Flushing NY 11355
Business Description: The Debtor is the owner of real property
located at 84-14 Queens Boulevard, Elmhurst,
NY valued at $5 million.
Chapter 11 Petition Date: November 30, 2023
Court: United States Bankruptcy Court
Eastern District of New York
Case No.: 23-44433
Judge: Hon. Elizabeth S. Stong
Debtor's Counsel: William Zou, Esq.
BILL ZOU & ASSOCIATES PLLC
136-20 38 Avenue, Suite 10D
Flushing NY 11354
Tel: 718-661-9562
E-mail: xfzou@aol.com
Total Assets: $5,001,500
Total Liabilities: $3,194,905
The petition was signed by Tu Kang Yang as president.
The Debtor listed NYC Department of Finance as its sole unsecured
creditor holding a claim of $69,514.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/C7URLKQ/133-24_Realty_Inc__nyebke-23-44433__0001.0.pdf?mcid=tGE4TAMA
1457 N PRIEUR: Hires James A. Graham LLC as Bankruptcy Counsel
--------------------------------------------------------------
1457 N Prieur St No, LLC received approval from the U.S. Bankruptcy
Court for the Eastern District of Lousiana to employ the Law Office
of James A. Graham, LLC to handle its bankruptcy proceedings.
The firm will charge $350 per hour for its services.
James Graham, Esq., a partner at the Law Office of James A. Graham,
LLC, disclosed in a court filing that he is a "disinterested
person" pursuant to Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
James A. Graham, Esq.
Law Office of James A. Graham, LLC
701 Loyola Avenue, Suite 403
New Orleans, LA 70113
Telephone: (504) 777-3625
Email: jgraham@jamesgrahamlaw.com
About 1457 N Prieur
1457 N Prieur St No, LLC filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. E.D. La. Case No.
23-11657) on Sept. 26, 2023, with $100,001 to $500,000 in assets
and up to $50,000 in liabilities.
Judge Meredith S. Grabill oversees the case.
James Graham, Esq., represents the Debtor as legal counsel.
1600 E. BUTLER: Hires Cushman & Wakefield as Real Estate Broker
---------------------------------------------------------------
1600 E. Butler Ave, LLC received approval from the U.S. Bankruptcy
Court for the District of Arizona to employ Cushman & Wakefield as
its professional broker.
The Debtor requires the services of a real estate broker to market
and sell its 12.71-acre vacant industrial and commercial real
property.
The firm will be paid a commission of 3 percent of the gross sales
price.
Brent Mallonee, executive director at Cushman, 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:
Brent Mallonee
Cushman Wakefield
2555 East Camelback Road, Suite 400
Esplanade V
Phoenix, AZ 85016-9262
Telephone: (602) 224-4437
Email: brent.mallonee@cushwake.com
About 1600 E. Butler Ave
1600 E. Butler Ave, LLC, a company in Flagstaff, Ariz., filed
Chapter 11 petition (Bankr. D. Ariz. Case No. 23-08129) on Nov. 10,
2023, with $8,483,336 in total assets and $6,172,068 in total
liabilities. Adam Reich, manager, signed the petition.
Judge Paul Sala oversees the case.
Carolyn J. Johnsen, Esq., at Dickinson Wright PLLC serves as the
Debtor's legal counsel.
162 UTICA AVE: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: 162 Utica Ave, Inc.
162 Utica Avenue
Brooklyn, NY 11213
Business Description: 162 Utica is a Single Asset Real Estate
debtor (as defined in 11 U.S.C. Section
101(51B)).
Chapter 11 Petition Date: November 30, 2023
Court: United States Bankruptcy Court
Eastern District of New York
Case No.: 23-44404
Judge: Hon. Jil Mazer-Marino
Debtor's Counsel: Dwight Yellen, Esq.
CHIDATMA LAW GROUP
325 Hudson Street - 4th Floor
New York, New York 10013
Tel: 212-903-4546
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $500,000 to $1 million
The petition was signed by Orville Sudlow 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/AIGYDTI/162_Utica_Ave_Inc__nyebke-23-44404__0001.0.pdf?mcid=tGE4TAMA
204 HOOPER: Voluntary Chapter 11 Case Summary
---------------------------------------------
Debtor: 204 Hooper LLC
204 Hooper Street
Brooklyn, NY 11211
Business Description: 204 Hooper is a Single Asset Real Estate.
Chapter 11 Petition Date: November 30, 2023
Court: United States Bankruptcy Court
Eastern District of New York
Case No.: 23-44384
Judge: Hon. Jil Mazer-Marino
Debtor's Counsel: Joshua Bronstein, Esq.
THE LAW OFFICES OF JOSHUA BRONSTEIN &
ASSOCIATES, PLLC
114 Soundview Drive
Port Washington, NY 11050-1555
Tel: (516) 698-0202
E-mail: jbrons5@yahoo.com
Total Assets: $1 million
Total Liabilities: $1.4 million
The petition was signed by Zalmen Glauber as sole member.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/STYEKYY/204_Hooper_LLC__nyebke-23-44384__0001.0.pdf?mcid=tGE4TAMA
245 S WESTLAKE: Voluntary Chapter 11 Case Summary
-------------------------------------------------
Debtor: 245 S Westlake, LLC
245 S Westlake Ave
Los Angeles, CA 90057
Business Description: The Debtor owns rental apartments under
construction located at 245 S. Westlake,
Los Angeles, California.
Chapter 11 Petition Date: December 1, 2023
Court: United States Bankruptcy Court
Central District of California
Case No.: 23-17983
Judge: Hon. Vincent P. Zurzolo
Debtor's Counsel: James Mortensen, Esq.
SOCAL LAW GROUP, PC
2855 Michelle Drive 120
Irvine, CA 92606
Tel: 213-387-7414
Email: pimmsno1@aol.com
Total Assets: $0
Total Liabilities: $4,847,789
The petition was signed by Jose Gonzalez as manager.
The Debtor filed an empty 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/IK4UBMA/245_S_Westlake_llc__cacbke-23-17983__0001.0.pdf?mcid=tGE4TAMA
365 S4 ST LLC: Unsecureds Will Get 10% of Claims over 5 Years
-------------------------------------------------------------
365 S4 ST LLC filed with the U.S. Bankruptcy Court for the Eastern
District of New York a Disclosure Statement in support of Plan of
Reorganization dated November 27, 2023.
The Debtor is an New York limited company partnership with its
principal place of business in Brooklyn, New York. The Debtor is
wholly owned by Zalmen Wagschal.
The Debtor operates the real property known as 365 S4th Street,
Brooklyn, New York 11221, Block: 2437; Lot: 25 (the "Property").
The Property is a 4-6 family residence with a store/office. The
total rent roll should be $3,000.00 on a monthly basis.
The Debtor has secured debt in the approximate principal amount of
$4,386,312.33 by PS Funding, Inc. who holds a secured First lien on
the Property. Class 2 is comprised of Priority Tax unsecured claims
in the amount of $9,862.36. The Debtor has claims to general
unsecured creditors in an aggregate of approximately $75,711.56.
The Plan proposes the reorganization of the Debtor and
distributions to creditors in accordance with the priorities set
forth in the Bankruptcy Code and as agreed under the Plan. The Plan
contemplates the continuation of Debtor's operation of the real
property known as 365 S4th Street, Brooklyn, New York Brooklyn, New
York 11221, Block: 2437; Lot: 25 (the "Property"). Financing for
the Plan will come from approximately $1.93 Million in Short Term
Financing, from the revenues of the Property, ongoing business
operations and/or owners' contributions.
Class 3 consists of General Unsecured Claims. Beginning 30 days
after the Effective Date, the Reorganized Debtor shall make
payments in equal installments for a period of 5 years, paying 10%
of each claim. The payments contemplated under this provision shall
be made from the revenues of the Property, ongoing business
operations and/or owners' contributions. Payment in full or partial
satisfaction of the Allowed Class 3 Claim may be made at any time
without pre-payment penalty.
In the event PS timely elects to be "fully secured" under Section
1111(b)(2) of the Bankruptcy Code, the Allowed Class 2 Claims value
must still be determined, but the amount of the lien securing the
Allowed Class 2 Secured Claims will not be limited to such value,
unless ordered otherwise in any Final Order(s) issued by the
Bankruptcy Court or the Confirmation Order. PS shall forego and
waive any unsecured deficiency claim and shall have no Allowed
Unsecured Claim in Class 3.
Debtor has secured Financing in the amount of $1.93 Million upon
court approval and on the Effective Date, the Debtor will
distribute $1.93 Million to PS. The Financing has a term of one
year at a rate of 13.5% with interest only payments. The payments
contemplated under this provision shall be made from the revenues
of the Property, ongoing business operations and/or owners'
contributions. At the end of the year, the Debtor will secure
traditional financing and continue operations.
A full-text copy of the Disclosure Statement dated November 27,
2023 is available at https://urlcurt.com/u?l=0y0VD6 from
PacerMonitor.com at no charge.
Counsel for Debtor:
Vivian Sobers, Esq.
SOBERS LAW, PLLC
11 Broadway, Suite 615
New York, NY 10004
Telephone: (917) 225-4501
Email: vsobers@soberslaw.com
About 365 S4 ST LLC
365 S4 ST LLC is an New York Limited Liability Company that was
formed to purchase a single parcel of real estate known as 365 S
4TH Street, Brooklyn, New York 11221, Block: 2437; Lot: 25 (the
"Property").
The Debtor filed its voluntary petition for Chapter 11 protection
(Bankr. E.D.N.Y. Case No. 23-43396) on September 21, 2023, listing
as much as $1 million to $10 million in both assets and
liabilities. Zalmen Wagschal as managing member, signed the
petition.
SOBERS LAW PLLC serve as the Debtor's legal counsel.
4D FACTORY: Seeks to Hire Spence Law Office as Bankruptcy Counsel
-----------------------------------------------------------------
4D Factory, Inc. seeks approval from the U.S. Bankruptcy Court for
the Southern District of New York to employ Spence Law Office, P.C.
as its attorney.
The firm's services include:
(a) assisting the Debtor in preparing and filing its petition,
schedules, statement of financial affairs, monthly financial
statements, and other necessary and appropriate documents;
(b) preparing and filing, on behalf of the Debtor, all
motions, applications, documents in connections with adversary
proceedings, and proposed orders or other legal papers;
(c) representing the Debtor at all Section 341 meetings and
other meetings, and before this Court, and to represent the Debtor
in all matters pending before said Court;
(d) explaining to the Debtor its responsibilities in a case
under chapter 11, and ensuring insofar as practicable that it
complies with its responsibilities;
(e) representing the Debtor in its negotiations with secured
and unsecured creditors;
(f) assisting the Debtor in formulating a plan of
reorganization; and
(g) performing such other further legal services for the
Debtor which may be necessary.
The firm will be paid at these rates:
Members $485 hourly
Associates/of Counsel $275 - $475 hourly
Paralegals $125 hourly
The firm received an advance fee retainer in the amount of
$35,214.
Robert Spence, Esq., a partner at Spence Law Office, 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:
Robert J. Spence, Esq.
Spence Law Office, P.C.
55 Lumber Road, Suite 5
Roslyn, NY 11576
Tel: (516) 336-2060
Fax: (516) 605-2084
Email: rspence@spencelawpc.com
About 4D Factory
4D Factory, Inc. is a New York-based media technology holding
company that invests in the technology-driven evolution of the
media landscape including platforms, content and applications.
4D Factory, Inc. and its affiliate, The 4D Factory, LLC, filed
petitions under Chapter 11, Subchapter V of the Bankruptcy Code
(Bankr. S.D.N.Y. Case Nos. 23-11618 and 23-11619) on Oct. 10, 2023.
Cort Javarone, managing member, signed the petitions.
At the time of the filing, 4D Factory, Inc. reported as much as
$50,000 in both assets and liabilities while The 4D Factory, LLC
reported $10 million to $50 million in assets and $1 million to $10
million in liabilities.
Judge Michael E. Wiles oversees the cases.
Robert J. Spence, Esq., at Spence Law Office, P.C. represents the
Debtors as bankruptcy counsel.
502 E JED: Seeks to Hire Pick & Zabicki as Special Counsel
----------------------------------------------------------
502 E Jed Realty Corp. filed an amended application seeking
approval from the U.S. Bankruptcy Court for the Eastern District of
New York to employ Pick & Zabicki LLP as its special counsel.
The firm's services include:
a. providing legal advice with respect to any transfer,
assignment, sale or other disposition of the Premises;
b. negotiating the terms of any transfer, assignment, sale or
other disposition of the Premises;
c. preparing all agreements and documents relating to any
transfer, assignment sale or other disposition of the Premises;
d. assisting the Debtor with obtaining the Court's approval of
any transfer, assignment, sale or other disposition of the
Premises, including attending any related Court hearing(s);
e. assisting the Debtor in consummating any transfer,
assignment, sale or other disposition of the Premises, including
preparing the documents necessary to effectuate a closing and
representing the Debtor at the closing; and
f. performing other necessary legal services.
The firm's hourly rates are as follows:
Partners $435 to $515
Associates $250
Paraprofessionals $125
In addition, the firm will seek reimbursement for out-of-pocket
expenses incurred.
Douglas Pick, Esq., a partner at Pick & Zabicki, 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:
Douglas J. Pick, Esq.
PICK & ZABICKI, LLP
369 Lexington Avenue, 12th Floor
New York, NY 10017
Tel: (212) 695-6000
Email: dpick@picklaw.net
About 502 E Jed Realty Corp.
502 E Jed Realty Corp., a company in Astoria, N.Y., filed its
voluntary petition for Chapter 11 protection (Bankr. E.D.N.Y. Case
No. 23-41316) on April 18, 2023, with $1 million to $10 million in
both assets and liabilities.
Judge Nancy Hershey Lord oversees the case.
Lawrence F. Morrison, Esq., at Morrison Tenenbaum, PLLC serves as
the Debtor's legal counsel.
751 ST. NICHOLAS: Seeks to Tap Leo Fox as Bankruptcy Attorney
-------------------------------------------------------------
751 St. Nicholas Avenue Realty Corp. seeks approval from the U.S.
Bankruptcy Court for the Southern District of New York to employ
Leo Fox, Esq., a New York City attorney, to handle its Chapter 11
case.
Mr. Fox will render these services:
a. give advice to the Debtor with respect to its powers and
duties under the Bankruptcy Code;
b. prepare legal papers and appear before the bankruptcy
court;
c. appear before the judge to protect the interests of the
Debtor and represent the Debtor in all matters pending before the
Bankruptcy Judge;
d. meet with and negotiate with creditors and other parties
for a plan of reorganization, prepare the plan and disclosure
statement and attendant documents; and
e. perform all other necessary legal services.
The hourly rates charged by Mr. Fox and other attorneys and
paralegals at his firm are as follows:
Partners $450 per hour
Associate $275 per hour
Paralegal $75 per hour
The retainer fee is $15,000.
As disclosed in court filings, Mr. Fox neither represents nor holds
any interest adverse to the Debtor and its estate.
Mr. Fox holds office at:
Leo Fox, Esq.
630 Third Avenue - 18th Floor
New York, NY 10018
Tel: (212) 867-9595
Email: leo@leofoxlaw.com
About 751 St. Nicholas Avenue Realty Corp.
751 St. Nicholas Avenue Realty Corp. is primarily engaged in
renting and leasing real estate properties.
751 St. Nicholas Avenue Realty Corp. filed its voluntary petition
for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y.
Case No. 23-11688) on October 23, 2023. The petition was signed by
David Hill as president. At the time of filing, the Debtor
estimated $1 million to $10 million in both assets and
liabilities.
Judge David S. Jones presides over the case.
Leo Fox, Esq. represents the Debtor as counsel.
AAD LOCKER: Hires Strip Hoppers Leithart as Bankruptcy Counsel
--------------------------------------------------------------
AAD Locker, LLC dba US Heating & Air Conditioning seeks approval
from the U.S. Bankruptcy Court for the Southern District of Ohio to
employ Strip, Hoppers, Leithart, McGrath & Terlecky Co., L.P.A., as
its bankruptcy counsel.
The Debtor requires legal counsel to:
(a) give advice with respect to the rights, powers and duties
of the Debtor in its Chapter 11 case;
(b) advise and assist the Debtor in the preparation of its
schedules and statement of financial affairs;
(c) assist and advise the Debtor in connection with the
administration of its bankruptcy case;
(d) analyze claims of creditors and negotiate with such
creditors;
(e) investigate the acts, conduct, assets, rights, liabilities
and financial condition of the Debtor and the Debtor's business;
(f) advise and negotiate with respect to the sale of the
Debtor's assets;
(g) investigate, file and prosecute litigation of behalf of
the Debtor;
(h) propose a plan of reorganization;
(i) appear and represent the Debtor at hearings, conferences
and other proceedings;
(j) prepare or review court documents;
(k) institute or continue any appropriate proceedings to
recover assets of the estate; and
(l) perform other necessary legal services.
The firm will be paid at these rates:
Myron Terlecky $395 per hour
John W. Kennedy $335 per hour
Loni Sammons $175 per hour
Law Clerk $125 per hour
In addition, the firm will receive reimbursement for out-of-pocket
expenses incurred.
The firm received a retainer in the amount of $32,013.06 from
Anthony Locker, a member and the President of the Debtor.
John W. Kennedy, Esq., a partner at Strip, Hoppers, Leithart,
McGrath & Terlecky Co., LPA , 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:
John W. Kennedy, Esq.
STRIP, HOPPERS, LEITHART, MCGRATH & TERLECKY CO., LPA
575 South Third Street
Columbus, OH 43215-5759
Tel: (614) 228-6345
Fax: (614) 228-6369
Email: jwk@columbuslawyer.net
About AAD Locker LLC
AAD Locker LLC is an HVAC service provider. The Debtor sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
S.D. Ohio Case No. 23-53940) on November 10, 2023. In the petition
signed by Anthony D. Locker, president, the Debtor disclosed up to
$500,000 in assets and up to $10 million in liabilities.
John W. Kennedy, Esq., at Strip Hoppers Leithart McGrath & Terlecky
Co., LPA, represents the Debtor as legal counsel.
ACME HOLDINGS: Selling Batavia Property for $600,000
----------------------------------------------------
Acme Holdings of N.Y., Inc. asked the U.S. Bankruptcy Court for the
Western District of New York for authority to sell real property to
the Town of Batavia.
The town made a cash offer of $600,000 for the property, which is a
mixed-use, commercial-residential facility located at 4120 West
Main St. Road, Town of Batavia, N.Y.
The property is being sold "free and clear" of liens.
Acme will use the proceeds from the sale to pay the claims of
mortgagees, including Northwest Bank, U.S. Small Business
Administration and Maura Newstead-Dibble after payment of the
closing costs and brokerage commissions.
The company previously sold its other properties also located in
the Town of Batavia and used the sale proceeds to pay lien
holders.
Acme is authorized to sell the properties, including the
commercial-residential facility under its Chapter 11 small business
plan, which the bankruptcy court confirmed on Dec. 22, 2020,
according to the motion filed by the company in court.
The motion is on the court's calendar for Dec. 11.
About Acme Holdings of N.Y.
Acme Holdings of N.Y., Inc. -- http://www.dibbleevents.com/-- owns
an event venue in Batavia, N.Y. It caters to weddings and
receptions, holiday and family gatherings, corporate events and
conventions, and school functions and fundraisers.
Acme filed Chapter 11 petition (Bankr. W.D.N.Y. Case No. 20-10204)
on Feb. 5, 2020. At the time of the filing, the Debtor reported $1
million to $10 million in both assets and liabilities. Judge Carl
L. Bucki oversees the case.
David H. Ealy, Esq., at Cristo Law Group, LLC, is the Debtor's
bankruptcy counsel.
The court confirmed the Debtor's Chapter 11 small business plan on
Dec. 22, 2020.
AEROSPACE ENGINEERING: Court OKs Continued Cash Collateral Access
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Utah authorized
Aerospace Engineering and Support, Inc. to continue using cash
collateral in accordance with the cash collateral ordered December
30, 2023, during the period of December 1, 2023 through February
29, 2024.
The Debtor is permitted to use cash collateral for the purposes set
forth in the budget, with a 10% variance.
The court said any interest that Floram Investment, LLC has in the
Debtor's cash will be effective post-petition to the same extent
that existed pre-petition.
The Debtor will make all post-petition payments to the U.S. Small
Business Administration as required under applicable agreements and
as represented at the hearing.
A copy of the court's order and the Debtor's budget is available at
https://urlcurt.com/u?l=uBv1jX from PacerMonitor.com.
The Debtor projects total disbursements, on a monthly basis, as
follows:
$228,961 for December 2023;
$180,426 for January 2024;
$155,426 for February 2024.
About Aerospace Engineering & Support
Aerospace Engineering & Support, Inc., sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Utah Case No.
23-22868) on July 7, 2023. In the petition signed by Lacey Remkes,
president, the Debtor disclosed up to $10 million in both assets
and liabilities.
Judge Peggy Hunt oversees the case.
The Debtor is represented by M. Darin Hammond, Esq., at Smith
Knowles, P.C.
AKRON REBAR: Updates Unsecured Claims; Files Amended Plan
---------------------------------------------------------
Sentinel Intelligence Group, LLC, a Debtor Affiliate of Akron Rebar
Company, submitted a Second Amended Disclosure Statement to
accompany Second Amended Chapter 11 Plan of Liquidation dated
November 21, 2023.
Sentinel was essentially a real estate holding company for Akron
Rebar's business operations with Akron Rebar representing
Sentinel's sole source of income through the payment of rent.
A sale hearing to approve the sale of the Purchased Assets to
Commercial Metals Company was held on July 21, 2023. The closing of
this transaction occurred on July 31, 2023 and Sentinel received
sale proceeds in the amount of $509,312.11.
This Plan of Liquidation under chapter 11 of the Bankruptcy Code
proposes to pay creditors of the Debtor from the sale proceeds.
The Debtor projects that holders of allowed general unsecured
claims in Class 2 will not receive a distribution. Holders of
Allowed Administrative Expense Claims will be paid in full pursuant
to the terms of this Plan or upon such other terms as may be agreed
upon by the holders of such claims and the Debtor.
Class 2 consists of General Unsecured Claims. Class 2 is impaired
by the Plan. Because the Allowed Claim of the SBA will not be paid
in full, there will be no distribution to any Allowed Claims in
this Class under the Plan. Because there will be no distribution to
holders of Allowed Claims in this Class, this Class is not entitled
to vote on the Plan. Deemed to have rejected this Plan and will not
be solicited to vote on the Plan.
The holder of Interests shall continue their equity ownership under
this Plan; provided that such holders of Interest shall not receive
any distributions or compensation from the Debtor as set forth in
this Plan. Following distribution to creditors, the Debtor will
have no assets and the legal entity will be dissolved.
To fund payments under this Plan, the Debtor will distribute its
remaining assets which consist of sale proceeds received from the
sale of real property in the amount of $509,189.62. Based on the
estimates of the Debtor and its professionals, the Debtor expects
to have adequate capitalization to fund all obligations committed
to under this Plan.
A full-text copy of the Second Amended Disclosure Statement dated
November 21, 2023 is available at https://urlcurt.com/u?l=Hql6DS
from PacerMonitor.com at no charge.
Counsel for the Debtor:
Peter G. Tsarnas, Esq.
GERTZ & ROSEN, LTD.
159 S. Main Street, Suite 400
Akron, OH 44308
Tel: (330) 255-0735
Fax: (330) 932-2367
E-mail: ptsarnas@gertzrosen.com
About Akron Rebar Co.
Akron Rebar Co. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ohio Case No. 23-50624) on May 4,
2023. In the petition signed by Michael B. Humphrey, Sr., vice
president and secretary, the Debtor disclosed up to $1 million in
assets and up to $10 million in liabilities.
Judge Alan M. Koschik oversees the case.
Peter G. Tsarnas, Esq., at Gertz & Rosen, Ltd., is the Debtor's
legal counsel.
AKUMIN INC: Stonepeak Take-Private Deal Okayed by Judge
-------------------------------------------------------
Jonathan Randles of Bloomberg Law reports that publicly traded
Akumin Inc. won bankruptcy court approval of a debt restructuring
that will take the radiology services provider private by handing
control of the business to investment firm Stonepeak Partners.
U.S. Bankruptcy Judge Christopher Lopez said Wednesday, November
29, 2023, he'd confirm Akumin's Chapter 11 plan, which swaps
roughly $470 million of Stonepeak's debt holdings into equity in
the reorganized business. Stonepeak has also agreed to invest $130
million into Akumin, which provides outpatient oncology and
radiology to about 1,000 hospitals and health systems across the
US.
About Akumin
Akumin Inc. -- https://www.akumin.com -- provides fixed-site
outpatient diagnostic imaging services through a network of owned
and/or operated imaging locations; and outpatient radiology and
oncology services and solutions to approximately 1,000 hospitals
and health systems across 48 states. Its imaging procedures include
magnetic resonance imaging ("MRI"), computerized tomography ("CT"),
positron emission tomography, ultrasound, diagnostic radiology
(X-ray), mammography, and other related procedures. Akumin's cancer
care services include a full suite of radiation therapy and related
offerings.
Akumin Inc. and 58 affiliated entities sought Chapter 11 bankruptcy
protection (Bankr. S.D. Tex. Lead Case No. 23-90827) on Oct. 22,
2023. The petitions were signed by Riadh Zine, the Debtors' chief
executive officer. As of June 30, 2023, Akumin Inc. listed total
assets of $1,635,742,000 and total debt of $1,635,186,000.
The Hon. Christopher M Lopez presides over the cases.
The law firm of Dorsey & Whitney LLP, serves as the Debtors'
general bankruptcy counsel; Jackson Walker LLP, as their
co-bankruptcy counsel; AlixPartners, LLP as the Debtors' financial
advisors; the law firm of Stikeman Elliott LLP, as special Canadian
counsel; Leerink Partners as investment banking firm; and Epiq
Corporate Restructuring LLC, as their noticing and claims agent.
Ronald J. Bienias, Partner and Managing Director of AlixPartners,
serves as the Debtors' chief restructuring officer.
Akin Gump Strauss Hauer & Feld LLP's Michael S. Stamer and Jason
Rubin, serves as counsel to the ad hoc group comprised of
beneficial holders of Prepetition 2025 Notes and Prepetition 2028
Notes.
King & Spalding LLP's Thad Wilson and Britney Baker serve as
counsel to the Prepetition RCF Agent.
Sidley Austin LLP's Anthony Grossi serves as counsel to the DIP
Lender, Stonepeak.
ALEXA & ROGER: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: Alexa & Roger Inc.
381 Myrtle Avenue
Brooklyn, NY 11205
Business Description: The Debtor owns a mixed use, non-owner
occupied, commercial building (store and two
apartments) located at 381 Myrtle Avenue,
Brooklyn, NY, having a comparable sale value
of $3.4 million.
Chapter 11 Petition Date: December 1, 2023
Court: United States Bankruptcy Court
Eastern District of New York
Case No.: 23-44441
Judge: Hon. Jil Mazer-Marino
Debtor's Counsel: Richard S Feinsilver, Esq.
RICHARD S FEINSILVER, ESQ.
One Old Country Road
Suite 347
Carle Place, NY 11514
Tel: 516-873-6330
Fax: 516-873-6183
Email: feinlawny@yahoo.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Roger A. Bradshaw as president.
The Debtor indicated 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/DZTUJLQ/Alexa__Roger_Inc__nyebke-23-44441__0001.0.pdf?mcid=tGE4TAMA
ALLIANCE PARTNERS: Amends Unsecured Claims Pay Details
------------------------------------------------------
Alliance Partners, Ltd., submitted a Second Amended Plan of
Liquidation.
The Plan is a liquidation Plan based upon a proposed auction sale
of the Properties.
On September 15, 2023, Corona filed a motion to dismiss the Case
and on September 25, 2023, Corona filed an amended motion for
relief from the automatic stay as to State St. and on October 11,
2023, Corona filed an objection to confirmation of the Debtor's
amended plan. The Debtor filed responses to the various pleadings
filed by Corona and the Court set a hearing on all matters for
October 23, 2023.
Thereafter, the Debtor and Corona engaged in discussions as to how
to resolve the pending matters and all matters were continued for
status to November 27, 2023. In the meantime, the U.S. Trustee, on
November 22, 2023, filed his motion to dismiss or convert the
Case.
The Debtor's Plan proposes to auction the Properties and pay off
all secured creditors in full and, therefore, the Debtor's ability
to make Plan payments is wholly contingent upon the auction sale of
the Properties. The unsecured creditors will be paid, pro rata, any
remaining proceeds of the auction sale of the Properties after
payment of administrative expenses and the secured creditors. There
are no ongoing operations of the Debtor other than prior marketing
of the Properties for sale which has not produced any offers. The
Debtor intends to file a motion for authority to employ Daniel
Hyman, Brad Thompson and Millennium Properties R/E, Inc., to
conduct an auction sale of the Properties as soon as possible.
Initial discussions with Millennium have resulted in holding the
auction sale of the Properties in mid to late January, 2024,
subject to Millennium's input, after an appropriate marketing
period in order to generate funds necessary to pay the creditors.
State St. and 113th St. will be sold free and clear of all
encumbrances including, but not limited to, unpaid and accrued real
estate taxes. Minimum bids will be determined by the Debtor and
Millennium for State St. and 113th St. and prospective bidders will
be advised of the minimum bids necessary. In the event the
Properties do not sell at auction, the Case will be dismissed.
This Second Amended Plan of Liquidation proposes to pay creditors
of the Debtor from the cash received from the auction sale of the
Properties.
Class 5 consists of General Unsecured Claims. The Debtor scheduled
general unsecured claims, or unsecured claims have been filed,
including the unsecured claim of Corona, in the total amount of
$50,837.19. D. Kenneth Wahlstrom was scheduled as holding an
unsecured claim in the amount of $8,750. Wahlstrom holds any
collateral to secure the claim. Corona's unsecured claim was filed
in the amount of $41,093.52. The Debtor intends to object to the
claim.
The unsecured claims will be paid, pro rata, on the allowed claims,
without interest, from the auction sale proceeds of the Properties,
after the payment of administrative expense claims and the secured
claims asserted against State St. and 113th St. In the event there
are sufficient funds remaining, after clearing title to State St.
and 113th St. and after payment of administrative expense claims
and the secured claims asserted against State St. and 113th St., to
pay interest on the allowed unsecured claims then interest will be
paid at the Treasury rate as of the date of filing of the Case.
A full-text copy of the Second Amended Liquidating Plan dated
November 26, 2023 is available at https://urlcurt.com/u?l=pZhKNj
from PacerMonitor.com at no charge.
Attorney for the Debtor:
Joel A. Schechter, Esq.
Law Offices of Joel A. Schechter
53 W. Jackson Blvd., Suite 1522
Chicago, IL 60604
Telephone: (312) 332-0267
Email: joel@jasbklaw.com
About Alliance Partners
Alliance Partners, Ltd., is an Illinois Corporation which was
engaged in the purchase of real property at scavenger sales
conducted by Cook County. The Debtor sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No.
23-00418) on Jan. 12, 2023, listing up to $500,000 in assets and up
to $100,000 in liabilities. Judge A. Benjamin Goldgar oversees the
case.
The Law Offices of Joel A. Schechter is the Debtor's counsel.
AMERICAN ROOFING: Case Summary & 13 Unsecured Creditors
-------------------------------------------------------
Debtor: American Roofing Products, LLC
400 16th Street
Dunbar, WV 25064
Business Description: The Debtor is a merchant wholesaler of
lumber and other construction materials.
Chapter 11 Petition Date: November 30, 2023
Court: United States Bankruptcy Court
Southern District of West Virginia
Case No.: 23-20211
Judge: Hon. B Mckay Mignault
Debtor's Counsel: Joe M. Supple, Esq.
SUPPLE LAW OFFICE, PLLC
801 Viand Street
Point Pleasant, WV 25550
Tel: 304-675-6249
Fax: 304-675-4372
E-mail: info@supplelawoffice.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by John Blaker as member.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 13 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/5EDH6TQ/American_Roofing_Products_LLC__wvsbke-23-20211__0001.0.pdf?mcid=tGE4TAMA
AMERICANAS SA: Vibra Pays BRL192m, Ends JV
------------------------------------------
Tais Fuoco of Bloomberg News reports that fuel distributor Vibra
Energia S.A. said it has terminated a partnership on convenience
stores with Brazilian retailer Americanas after payment of 192m
reais.
The Lojas Local business continues with a company 100% owned by
Americanas and the BR Mania business, with a new company whose
shares are fully owned by Vibra and which will continue to use the
corporate name Vem Conveniencia.
A payment of 192m reais was made to Americanas with settlement and
reciprocal release between the parties of their obligations in
relation to partnership.
About Americanas SA
Americanas was one of the largest diversified retail chains in
Brazil, with a wide platform of physical stores, robust
e-commerce,
fintech, and has just entered into the niche food retail. It is
listed on B3, being indirectly controlled by billionaire Jorge
Paulo Lemann, Carlos Alberto Sicupira and Marcel Telles.
The retailer nosedived in January 2023 after becoming mired in an
accounting scandal. The firm filed for bankruptcy at a court in
Rio de Janeiro on Jan. 19, 2023.
Americanas sought protection under Chapter 15 of the Bankruptcy
Code (Bankr. S.D.N.Y. Case No. 23-10092) on Jan. 25, 2023. White
&
Case LLP, led by John K. Cunningham, is the U.S. counsel.
AMERITRANS EXPRESS: Hires Armooh Williams as Special Counsel
------------------------------------------------------------
Ameritrans Express, LLC seeks approval from the U.S. Bankruptcy
Court for the U.S. Bankruptcy Court for the Eastern District of
Virginia to hire Armooh Williams, PLLC as its special counsel.
The scope of representation involves navigating the settlement
process arising from a breach of a service contract between
Ameritrans Express, LLC and Paychex, Inc. This includes
comprehensive legal assistance in negotiating terms, mediating
disputes, and seeking resolution favorable to the Debtor. The firm
shall craft any agreements necessary to address the specific breach
issues, mitigate potential conflicts, and safeguard Debtor's
interests throughout the settlement proceedings related to the
service contract breach.
The Debtor has agreed to pay a retainer of $5,000.
Joyce Williams, Esq., managing attorney of Armooh Williams, charges
an hourly rate of $300 per hour and seeks reimbursement of all
out-of-pocket expenses incurred and 10 percent of the amount
recouped in conjunction with the settlement.
Ms. Williams assured the court that her firm is a disinterested
person within the meaning of 11 U.S.C. Sec. 327.
The firm can be reached through:
Joyce Williams, Esq.
Armooh Williams, PLLC
2611 S. Clark Street, Suite 663
Arlington, VA 22202
Phone: (703) 486 5605
Email: joyce@armooh-williams.com
About Ameritrans Express
Ameritrans Express LLC is part of the general freight trucking
industry.
Ameritrans Express LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. E.D. Va. Case No. 23-11055) on June 29,
2023. In the petition filed by Frederick Amankwaa, as owner, the
Debtor reports estimated assets between $10 million and $50 million
and estimated liabilities between $1 million and $10 million.
Judge Brian F. Kenney oversees the case.
The Debtor is represented by Jonathan B. Vivona, Esq. at VIVONA
PANDURANGI, PLC.
AMYRIS INC: Seeks to Hire Michel-Shaked Group as Expert Consultant
------------------------------------------------------------------
Amyris, Inc. and its affiliates seek approval from the U.S.
Bankruptcy Court for the District of Delaware to employ Back Bay
Management Corporation and its division, The Michel-Shaked Group as
its expert consultant.
The firm agrees to consult with the Debtors, provide one or more
expert opinions and reports, and, if necessary, deposition and/or
trial/hearing testimony in any litigation or contested matter
regarding the valuation of the Debtors and/or certain of the
Debtors', or certain affiliates of the Debtors' assets (including,
without limitation, intellectual property).
The firm will be paid at these hourly rates:
Managing Director $900
Director $700
Senior Analysts $400 to $600
Analysts $275 to $450
Paraprofessionals $175
Brad Orelowitz, CPA, managing director of Back Bay, assured the
court that the firm does not hold or represent any interest adverse
to the Debtors’ estates, and is a "disinterested person" as that
phrase is defined in section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Brad Orelowitz
Back Bay Management Corporation
The Michel-Shaked Group
2 Park Plaza #500
Boston, MA 02116
Telephone: (617) 426-4455
About Amyris, Inc.
Amyris (Nasdaq: AMRS) -- http://www.amyris.com/-- is a leading
synthetic biotechnology company, transitioning the Clean Health &
Beauty and Flavors & Fragrances markets to sustainable ingredients
through fermentation and the company's proprietary
Lab-to-Market(TM) technology platform. This Amyris platform
leverages state-of-the-art machine learning, robotics and
artificial intelligence, enabling the company to rapidly bring new
innovation to market at commercial scale. Amyris ingredients are
included in over 20,000 products from the worldps top brands,
reaching more than 300 million consumers. Amyris also owns and
operates a family of consumer brands that is constantly evolving to
meet the growing demand for sustainable, effective and accessible
products.
Amyris, Inc, et al. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Lead Case No. 23-11131) on Aug. 9,
2023. The petitions were signed by Han Kieftenbeld as interim chief
executive officer & chief financial officer.
In the petition, Amyris disclosed $679,679,000 in assets and
$1,327,747,000 in liabilities.
Pachulski Stang Ziehl & Jones LLp serves as the Debtors' bankruptcy
counsel. Fenwick & West, LLP is the Debtorps corporate counsel. The
Debtors tapped PricewaterhouseCoopers LLP as their financial
advisor, while Intrepid Investment Bankers LLC serves as the
Debtorsp investment banker. Stretto, Inc. is the Debtors' claims,
noticing, solicitation agent and administrative adviser.
ANAGRAM HOLDINGS: Hires Robert W. Baird & Co. as Investment Banker
------------------------------------------------------------------
Anagram Holdings LLC seeks approval from the U.S. Bankruptcy Court
for the Southern District of Texas to employ Robert W. Baird & Co.
Incorporated as its investment banker.
The firm will render these services:
a. General Investment Banking Services. Baird will:
(i) to the extent it deems necessary, appropriate and
feasible, and/or to the extent requested by the Debtors,
familiarize itself with the business, operations, properties,
financial condition and prospects of the Debtors;
(ii) evaluate the Debtors' liabilities, debt capacity, and
strategic and financial alternatives;
(iii) conduct other analysis, which may include valuation
exercises; and
(iv) if the Debtors determine to undertake a Transaction,
advise and assist the Debtors in structuring and effecting the
financial aspects of such a Transaction or Transactions, subject to
the terms and conditions of the Engagement Letter.
b. Restructuring Services. If the Debtors pursue a
Restructuring, Baird will, if requested by the Debtors:
(i) provide financial advice and assistance to the Debtors in
developing and seeking approval of any Restructuring, which may be
a plan under Chapter 11 of the Bankruptcy Code;
(ii) provide financial advice and assistance to the Debtors in
structuring any new securities to be issued under any
Restructuring;
(iii) advise and assist the Debtors in negotiations with
entities or groups affected by any Restructuring; and
(iv) participate in hearings before the Court with respect to
the matters upon which Baird has provided advice, including, as
relevant, coordinating with the Debtors' counsel with respect to
testimony in connection therewith.
c. Sale Services. If the Debtors pursue a Sale, Baird will, if
requested by the Debtors:
(i) provide financial advice and assistance to the Debtors in
connection with a Sale, including, without limitation, structuring
a credit bid sale to existing creditors, identifying potential
acquirers and, at the Debtors' request, contacting such potential
acquirers;
(ii) assist the Debtors in preparing a confidential
information memorandum to be used in soliciting potential
acquirers; and
(iii) advise and assist the Debtors in negotiations with
potential acquirers.
d. Financing Services. If the Debtors pursue a Financing, Baird
will, if requested by the Debtors:
(i) provide financial advice and assistance to the Debtors in
structuring a Financing, including, without limitation, identifying
and soliciting potential Financing providers and, at the Debtors'
request, contacting and reviewing the proposals received from such
counterparties;
(ii) prepare offering, marketing or other transaction
materials concerning the Debtors and the Transaction for
distribution and presentation to the Debtors' creditors, investors
or other potential Financing counterparties;
(iii) develop and implement a marketing plan with respect to
such Financing;
(iv) identify and solicit, and review of proposals received
from, prospective Financing counterparties; and
(v) advise and assist the Debtors in negotiations with
potential Financing counterparties.
e. In addition, during the term of the engagement and, as
mutually agreed upon by Baird and the Debtors, Baird will be
available to meet with the Debtors' Board of Directors, board of
managers or equivalent applicable governing body and senior
management to discuss the matters on which Baird has been engaged
to provide services under the Engagement Letter, as well as to
provide periodic presentations in connection with such matters.
The firm will be compensated as follows:
a. Monthly Advisory Fees. The Debtors will pay Baird a monthly
advisory fee equal to $150,000 per month until the termination of
Baird's engagement pursuant to Section 6 of the Engagement Letter.
The first Monthly Advisory Fee shall be payable as of September 12,
2023, and each subsequent Monthly Advisory Fee shall be payable in
advance on each monthly anniversary thereafter. After the payment
of three full Monthly Advisory Fees to Baird, 50 percent of all
Monthly Advisory Fees actually paid to Baird shall be credited
once, without duplication, against any Restructuring Transaction
Fee, Sale Transaction Fee or Financing Transaction Fee subsequently
payable to Baird under the Engagement Letter; provided, that, in
the event of a filing under Chapter 11 of the Bankruptcy Code,
such credit shall only apply if all of the fees provided for under
the Engagement Letter are approved in their entirety by the
Bankruptcy Court.
b. Restructuring Transaction Fee(s). Upon consummation of a
Restructuring, the Debtors will pay Baird a fee equal to
$2,500,000.
c. Sale Transaction Fee(s). Upon consummation of a Sale, the
Debtors will pay Baird a fee equal to $2,500,000. For the avoidance
of doubt, the Debtors shall not pay Baird any Restructuring
Transaction Fee if a Sale is consummated and a Sale Transaction Fee
is paid to Baird as provided in the Engagement Letter.
d. Financing Fee(s). Upon consummation of a Financing, the
Debtors will pay Baird a fee equal to the total gross proceeds
provided for in any Financing (including all amounts raised and/or
committed whether or not drawn or used), multiplied by the
following:
i. 1.0 percent with respect to any senior secured Bank Debt
and/or senior secured Debt Securities,
ii. 3.0 percent with respect to any junior secured,
unsecured or any other Bank Debt and/or Debt Securities not covered
by (i) above, and
iii. 5.0 percent with respect to any Equity Securities.
To the extent the Debtors consummate any Financing amongst
Anagram's existing noteholders, the Financing Transaction Fees
attributable to such Financing shall be reduced by 50 percent. The
Financing Transaction Fees shall not exceed $5,000,000 in the
aggregate.
e. For the avoidance of doubt, more than one fee may be
payable pursuant to clauses (a) through (d) above. Additionally,
all payments to Baird under the Engagement Letter shall be
non-refundable and made in cash by wire transfer of immediately
available U.S. funds. No fees payable to any third party by the
Debtors or any person or entity in connection with the subject
matter of this engagement shall reduce or otherwise affect any fee
payable to Baird under the Engagement Letter. The Debtors
acknowledge that a Transaction may occur that does not include cash
as a form of consideration; notwithstanding the foregoing, the
Debtors agree that all outstanding fees shall be earned, due, and
payable to Baird in cash regardless of the form of consideration of
any Transaction.
f. Expense Reimbursement. In addition to any fees or other
compensation that may be paid to Baird under the Engagement Letter,
whether or not any Transaction occurs, the Debtors shall reimburse
Baird, promptly upon receipt of an invoice therefor, for all (a)
reasonable and documented out-of-pocket expenses (including,
without limitation, travel and lodging, meals, printing, data
processing, research, database and similar information charges paid
to third party vendors, telephone and facsimile charges, courier
services and other reasonable and customary out-of-pocket
expenditures), and (b) (i) reasonable and documented out-of-pocket
fees and expenses of counsel and (ii) the reasonable and documented
fees and expenses of any other consultants or independent experts
retained by Baird, in each case, with the Debtors' consent (which
shall not be unreasonably withheld or delayed), and likely to the
extent, incurred by Baird in connection with activities under or
contemplated by the Engagement Letter.
Ajay Bijoor, managing director at Baird, assured the court that the
firm is a "disinterested person" within the meaning of 11 U.S.C.
101(14).
The firm can be reached through:
Ajay Bijoor
Robert W. Baird & Co. Incorporated
777 East Wisconsin Avenue
Milwaukee, WI 53202
Phone: (646) 557-2733
Email: abijoor@rwbaird.com
About Anagram Holdings
Anagram Holdings LLC is a manufacturer of foil balloons and
inflated decor, distributing and selling its products both
domestically and internationally. Its customers include party
supply specialty stores, grocers, mass marketers, parks, drugstores
and discount variety stores. The company is based in Eden Prairie,
Minn.
Anagram Holdings and two affiliates filed Chapter 11 petitions
(Bankr. S.D. Texas Lead Case No. 23-90901) on Nov. 8, 2023. In the
petition signed by its chief restructuring officer, Adrian Frankum,
Anagram Holdings reported $100 million to $500 million in both
assets and liabilities.
Judge Marvin Isgur oversees the cases.
The Debtors tapped Howley Law, PLLC and Simpson Thacher & Bartlett,
LLP as legal counsel; Ankura Consulting Group, LLC as restructuring
advisor; and Robert W. Baird & Co. as investment banker. Kurtzman
Carson Consultants, LLC is the claims agent.
ARC MANAGEMENT: Files Emergency Bid to Use Cash Collateral
----------------------------------------------------------
Arc Management Group, LLC asks the U.S. Bankruptcy Court for the
Northern District of Georgia, Atlanta Division, for authority to
use cash collateral and provide adequate protection.
The Debtor requires the use of cash collateral for general
operational and administrative expenses.
The Debtor is a borrower from Green Note Capital Partners SPV LLC,
Cheetah Capital, Funding Club, Samson MCA LLC, Libertas Funding,
LLC, and KYF Global Partners, LLC, who are merchant cash advance
companies. One or more of the MCAs has filed UCC Financing
Statements asserting a security interest in the Debtor's tangible
and intangible personal property.
The Debtor entered into Joint Venture Agreements with Flock
Financial, LLC pursuant to which Flock provided funding to the
Debtor for the purchase of the account receivables debt portfolios.
Flock has filed UCC Financing Statements asserting a security
interest in the Debt Portfolios.
To the extent that any interest that Flock and any of the MCAs may
have in the cash collateral is diminished, the Debtor proposes to
grant these creditors a replacement lien in post-petition
collateral of the same kind, extent, and priority as the liens
existing pre-petition, except that the Adequate Protection Lien
will not extend to the proceeds of any avoidance actions received
by the Debtor or the estate pursuant to chapter 5 of the Bankruptcy
Code. Hence, Flock's and any of the MCAs' interests in the Debtor's
cash collateral, to the extent they have any, are adequately
protected.
A copy of the Debtor's motion and budget is available at
https://urlcurt.com/u?l=4ddW6O from PacerMonitor.com.
The Debtor projects $240,000 in total income and $233,525 in total
expenses.
About ARC Management Group, LLC
ARC Management Group, LLC is a provider of billing, collection and
debt recovery services.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ga. Case No. 23-61742) on November 28,
2023. In the petition signed by William D. Wilson, chief executive
officer, the Debtor disclosed up to $1 million in assets and up to
$10 million in liabilities.
William Rountree, Esq., at Rountree, Leitman, Klein & Geer, LLC,
represents the Debtor as legal counsel.
ARCIMOTO INC: Receives Nasdaq Notice of Late 10-Q Filing
--------------------------------------------------------
Arcimoto, Inc. announced that it received a notice from The Nasdaq
Stock Market, LLC stating that because the Company has not yet
filed its quarterly report on Form 10-Q for the period ended Sept.
30, 2023, the Company is not in compliance with Nasdaq Listing Rule
5250(c)(1), which requires listed companies to timely file all
required periodic reports with the Securities and Exchange
Commission.
The current notice will have no immediate effect on the listing or
trading of the Company's common stock on the Nasdaq Global Market,
although there can be no assurances that further delays in the
filing of the Form 10-Q will not have an impact on the listing or
trading of the Company's common stock. Nasdaq indicated that the
Company must: (i) no later than Jan. 22, 2024, submit a plan to
regain compliance with respect to the filing requirement; and (ii)
on or before May 20, 2024, file the delinquent Form10-Q. The
Company intends to file the delinquent Form 10-Q as soon as
practicable.
About Arcimoto Inc.
Based in Eugene, Oregon, Arcimoto, Inc. -- http://arcimoto.com--
designs and manufactures electric vehicles. Built on the
revolutionary three-wheel Arcimoto Platform, its vehicles are
purpose-built for daily driving, local delivery, and emergency
response, all at a fraction of the cost and environmental impact of
traditional gas-powered vehicles.
Arcimoto reported a net loss of $62.88 million in 2022 following a
net loss of $47.56 million in 2021.
Portland, Oregon-based Deloitte & Touche LLP, the Company's auditor
since 2022, issued a "going concern" qualification in its report
dated April 14, 2023, citing that the Company has incurred
significant losses and does not have sufficient cash on hand to
meet its obligations as they come due, which raises substantial
doubt about its ability to continue as a going concern.
ARCITERRA COMPANIES: Voluntary Chapter 11 Case Summary
------------------------------------------------------
Debtor: Arciterra Companies, LLC
4430 Camino Allenada
Phoenix, AZ 85018
Chapter 11 Petition Date: November 30, 2023
Court: United States Bankruptcy Court
District of Arizona
Case No.: 23-08639
Debtor's Counsel: Gerald Shelley, Esq.
FENNEMORE CRAIG, P.C.
2394 E Camelback Rd. Suite 600
Phoenix, AZ 85016
Tel: 602-916-5000
Email: gshelley@fennemorelaw.com
Estimated Assets: $50,000 to $100,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Jonathan Jarmore as manager.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/HY73YTA/ARCITERRA_COMPANIES_LLC__azbke-23-08639__0001.0.pdf?mcid=tGE4TAMA
ARK LABORATORY: Court OKs Cash Collateral Use on Final Basis
------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Michigan,
Southern Division, authorized Ark Laboratory, LLC to continue using
cash collateral on a final basis in accordance with other terms of
the final cash collateral order as amended by the second amended
stipulated final order authorizing use of cash collateral and
granting adequate protection.
Auxo Investment Partners, LLC is directed to increase its secured
claim and receive the same treatment as the Prepetition
Indebtedness under the Final Cash Collateral Order. The advance
will be paid to Paul R. Hage, the proposed Liquidating Trustee, for
costs incurred by the Trustee. Auxo will transfer $50,000 to Taft
Stettinius & Hollister LLP's trust account, with the funds returned
if the plan is not confirmed. Additionally, $8,500 will be paid to
UHY Advisors for final tax returns.
The Carve Out will be paid by Auxo to the Debtor's professionals
and the Committee's professionals, with one-half being funded in
the DIP Professionals Account no later than September 28, 2023, and
the other half being funded in the DIP Professionals Account no
later than November 29, 2023. To the extent that there are any
unfunded fees required to be paid to the Clerk of the Court and to
the U.S. Trustee pursuant to 28 U.S.C. Section 1930(a), those
unfunded UST Fees shall also be funded no later than November 29,
2023 to the DIP Professionals Account. The amount of UST Fees is
subject to reconciliation, and an amount no less than $45,000 in
the aggregate will have been funded for these UST Fees by no later
than November 29, 2023.
A copy of the amended final order is available at
https://urlcurt.com/u?l=3lERll from PacerMonitor.com.
About Ark Laboratory, LLC
Ark Laboratory, LLC owns and operates a medical laboratory. The
Debtor sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. E.D. Mich. Case No. 23-43403) on April 12, 2023. The
petition was signed by James Grossi, its principal. In its
schedules, the Debtor disclosed $11,096,191 in total assets and
$32,057,267 in total liabilities.
Judge Maria L. Oxholm oversees the case.
Robert N. Bassel, Esq., represents the Debtor as legal counsel.
ARTISAN MASONRY: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Artisan Masonry, Inc.
6959 FM 1565
Royse City, TX 75189
Chapter 11 Petition Date: November 30, 2023
Court: United States Bankruptcy Court
Eastern District of Texas
Case No.: 23-42275
Debtor's Counsel: Eric A. Liepins, Esq.
ERIC A. LIEPINS, P.C.
12770 Coit Road
Dallas, TX 75251
Tel: (972) 991-5591
Fax: (972) 991-5788
E-mail: eric@ealpc.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Robert Gladu as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 20 largest unsecured creditors is available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/QVJYX3I/Artisan_Masonry_Inc__txebke-23-42275__0001.0.pdf?mcid=tGE4TAMA
ATLAS CAPITAL: Seeks to Hire Buddy D. Ford as Bankruptcy Counsel
----------------------------------------------------------------
Atlas Capital Investments, LLC seeks approval from the U.S.
Bankruptcy Court for the Middle District of Florida to employ Buddy
D. Ford, P.A. as its bankruptcy counsel.
The Debtor requires legal counsel to:
(a) analyze the financial situation, and rendering advice and
assistance to the Debtor in determining whether to file a petition
under Title 11, United States Code;
(b) give advice regarding the powers and duties of the Debtor
in the continued operation of its business and management of the
estate's property;
(c) prepare and file schedules of assets and liabilities,
statement of affairs, and other documents required by the court;
(d) represent the Debtor at the Section 341 creditors'
meeting;
(e) advice the Debtor with respect to its powers and duties as
Debtor and as Debtor-in-Possession in the continued operation of
its business and management of its property; if appropriate;
(f) advise the Debtor with respect to its responsibilities in
complying with the United States Trustee's Operating Guidelines and
Reporting Requirements and with the rules of the court;
(g) prepare legal papers;
(h) protect the interest of the Debtor in all matters pending
before the court;
(i) represent the Debtor in negotiation with its creditors in
the preparation of a Chapter 11 plan; and
(j) perform all other necessary legal services for the
Debtor.
The firm will be paid at these rates:
Buddy D. Ford, Esq. $450 per hour
Senior Associate Attorneys $400 per hour
Junior Associate Attorneys $350 per hour
Senior Paralegal Services $150 per hour
Junior Paralegal Services $100 per hour
In addition, the firm will seek reimbursement for expenses
incurred.
Prior to the commencement of its Chapter 11 case, the Debtor paid
the firm an advance fee of $27,000.
Buddy Ford, Esq., disclosed in a court filing that his firm is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.
The firm can be reached through:
Buddy D. Ford, Esq.
Jonathan A. Semach, Esq.
Heather M. Reel, Esq.
Buddy D. Ford, P.A.
9301 West Hillsborough Avenue
Tampa, FL 33615-3008
Telephone: (813) 877-4669
Email: Buddy@tampaesq.com
Jonathan@tampaesq.com
Heather@tampaesq.com
About Atlas Capital
Atlas Capital is a Single Asset Real Estate debtor (as defined in
11 U.S.C. Section 101 (51B)).
Atlas Capital Investments, LLC filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla.
Case No. 23-05269) on November 21, 2023. The petition was signed by
Lynne A. Bui as manager of Zephyr Asset Management, LLC, Manager of
the Debtor. At the time of filing, the Debtor estimated $10 million
to $50 million in both assets and liabilities.
Buddy D Ford, Esq. at Buddy D. Ford, P.A. represents the Debtor as
counsel.
AVE P DELI: Seeks to Hire Wisdom Professional as Accountant
-----------------------------------------------------------
Ave P Deli & Grocery Inc. seeks approval from the U.S. Bankruptcy
Court for the Eastern District of New York to employ Wisdom
Professional Services Inc. as its accountant.
The Debtor requires legal counsel to:
(a) gather and verify all pertinent information required to
compile and prepare; and
(b) prepare monthly operating reports for the Debtor in this
bankruptcy case.
The firm will charge $350 per report. The expected estimate monthly
cost of services is $350.
In addition, the firm will seek reimbursement for expenses
incurred.
Michael Shtarkman, CPA, a member of Wisdom Professional Services,
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:
Michael Shtarkman, CPA
Wisdom Professional Services Inc.
626 Sheepshead Bay Road Suite 640
Brooklyn, NY 11224
Telephone: (718) 554-6672
Email: mshtarkmancpa@gmail.com
About Ave P Deli & Grocery Inc.
Ave P Deli & Grocery Inc. sought protection for relief under
Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y. Case No.
23-43627) on October 5, 2023, listing under $1 million in both
assets and liabilities.
Alla Kachan, Esq. at Law Offices Of Alla Kachan P.C. represents the
Debtor as counsel.
AVENUE DC: Seeks to Hire McNamee Hosea as Bankruptcy Counsel
------------------------------------------------------------
The Avenue DC, LLC seeks approval from the U.S. Bankruptcy Court
for the District of Columbia to employ McNamee Hosea, P.A. as its
bankruptcy counsel.
The firm's services include:
a. prepare and file all necessary bankruptcy pleadings on
behalf of the Debtor;
b. negotiate with creditors;
c. represent Debtor to Adversary and other proceedings in
connection with the Bankruptcy;
d. prepare the Debtor's disclosure statement and plan of
reorganization; and
e. provide any other services related to the Bankruptcy and
the Debtor's reorganization.
The firm will be paid at these rates:
Craig M. Palik $425 per hour;
Janet M. Nesse $525 per hour;
Associates $300 to $350 per hour
Paralegal $135 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
The initial retainer payment of $21,738 was paid by Timothy Walsh,
the sole member of the Debtor.
Craig M. Palik, Esq., a partner at McNamee Hosea, P.A., 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:
Craig M. Palik, Esq.
Justin P. Fasano, Esq.
MCNAMEE HOSEA, P.A.
6404 Ivy Lane, Suite 820
Greenbelt, MD 20770
Tel: (301) 441-2420
Fax: (301) 982-9450
Email: cpalik@mhlawyers.com
jfasano@mhlawyers.com
About The Avenue DC, LLC
The Avenue DC, LLC sought protection for relief under Chapter 11 of
the Bankruptcy Code (Bankr. D.D.C. Case No. 23-00339) on November
17, 2023, listing up to $50,000 in assets and $500,001 to $1
million in liabilities.
Judge Elizabeth L Gunn presides over the case.
Craig Palik, Esq. at McNamee Hosea, P.A. represents the Debtor as
counsel.
BED BATH & BEYOND: Says Mediterranean Shipping Owes $315 Million
----------------------------------------------------------------
Gina Kim of Law360 reports that Bed Bath & Beyond says
Mediterranean Shipping owes it more than $315 million for allegedly
failing to meet service commitments during the COVID-19 pandemic,
forcing the retailer to seek alternative cargo arrangements at high
prices or forgo shipping altogether, according to a suit filed
Tuesday with the Federal Maritime Commission.
About Bed Bath & Beyond
Bed Bath & Beyond Inc., together with its subsidiaries, is an
omnichannel retailer selling a wide assortment of merchandise in
the Home, Baby, Beauty & Wellness markets and operates under the
names Bed Bath & Beyond, buybuy BABY, and Harmon, Harmon Face
Values. The Company also operates Decorist, an online interior
design platform that provides personalized home design services.
At its peak, Bed Bath & Beyond operated the largest home furnishing
retailer in the United States with over 970 stores across all 50
states, consistently at the forefront of major home and bath
trends. Operating stores spanning the United States, Canada,
Mexico, and Puerto Rico, Bed Bath & Beyond offers everything from
bed linens to cookware to electric appliances, home organization,
baby care, and more.
Bed Bath & Beyond closed over 430 locations across the United
States and Canada before filing Chapter 11 cases, implementing
full-scale wind-downs of their Canadian business and the Harmon
branded stores.
Left with 360 Bed Bath & Beyond, and 120 buybuy BABY stores, Bed
Bath & Beyond Inc. and 73 affiliated debtors on April 23, 2023,
each filed a voluntary petition for relief under Chapter 11 of the
United States Bankruptcy Code to pursue a wind-down of operations.
The cases are pending before the Honorable Vincent F. Papalia and
requested joint administration of the cases under Bankr. D.N.J.
Lead Case No. 23-13359.
Kirkland & Ellis LLP and Cole Schotz P.C. are serving as legal
counsel, Lazard Frares & Co. LLC is serving as investment banker,
and AlixPartners LLP is serving as financial advisor. Bed Bath &
Beyond Inc. has retained Hilco Merchant Resources LLC to assist
with inventory sales. Kroll LLC is the claims agent.
BH&G HOLDINGS: Hires Armstrong Teasdale as Bankruptcy Counsel
-------------------------------------------------------------
BH&G Holdings, LLC seeks approval from the U.S. Bankruptcy Court
for the District of Nevada to employ Armstrong Teasdale LLP as its
bankruptcy counsel.
The firm's services include:
(a) providing legal advice with respect to the Debtor's
powers and duties in the continued operation of its affairs and
business;
(b) attending meetings and negotiating with representatives
of creditors and other parties in interest and advising and
consulting on the conduct of the case, including the legal and
administrative requirements of operating in Chapter 11;
(c) taking necessary action to protect and preserve the
Debtor's estate, including the prosecution of actions commenced
under the Bankruptcy Code on its behalf, and objections to claims
filed against the estate;
(d) preparing and prosecuting legal papers;
(e) advising the Debtor with respect to restructuring
alternatives, including preparing and pursuing confirmation of a
Chapter 11 plan;
(f) appearing in court; and
(g) performing all other necessary legal services.
The firm's services include:
Partners $400 - $1,100 per hour
Of Counsel $400 - $1,100 per hour
Associates $335 - $595 per hour
Paralegals $175 - $375 per hour
Law Clerks $200 per hour
The following information is provided in response to the request
for additional information set forth in Paragraph D.1 of the United
States Trustee Guidelines:
Question: Did you agree to any variations from, or alternatives
to, your standard or customary billing arrangements for this
engagement?
Response: No. The hourly rates Armstrong Teasdale will bill for
this engagement are consistent with the rates that Armstrong
Teasdale charges other comparable chapter 11 clients, and the rate
structure provided by Armstrong Teasdale is appropriate and is not
significantly different from (a) the rates that Armstrong Teasdale
charges in other on bankruptcy representations or (b) the rates of
other comparably skilled professionals for similar engagements.
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: Armstrong Teasdale’s current hourly rates for
services rendered on behalf of the Debtors ranges as follows:
Partners and Of Counsel $400 to $1,100
Associates $335 to $595
Paralegals $175 to 375
Law Clerks $200
Armstrong Teasdale represented the Debtor during the twelve-month
period before the Petition Date, using the hourly rates listed
above.
Questions: Has your client approved your prospective budget and
staffing plan, and, if so, for what budget period?
Response: A budget and staffing plan has been discussed and
approved among counsel and the client for this case.
Brandon Johansson, Esq., a partner at Armstrong Teasdale, disclosed
in a court filing that his firm is a "disinterested person" within
the meaning of Section 101(14) of the Bankruptcy Code.
Armstrong can be reached through:
Brandon P. Johansson, Esq.
Armstrong Teasdale LLP
7700 Forsyth Boulevard, Suite 1800
St. Louis, MO 63105
Telephone: (314) 621-5070
Facsimile: (314) 612-2242
Email: bjohansson@atllp.com
About BH&G Holdings, LLC
BH&G Holdings, LLC is a Single Asset Real Estate as defined in 11
U.S.C. Section 101(51B).
MGP Apex 582 Multifamily LLC, MGP Apex 582 Guaranty, LLC, and MGP
Apex582 Development, LLC filed an involuntary Chapter 11 case
against the Debtor (Bankr. D. Nev. Case No. 23-13321) on August 9,
2023.
Blakeley E. Griffith, Esq., at Snell & Wilmer, LLP, represents the
Debtor as legal counsel.
BISHOP OF OAKLAND: Seeks to Extend Plan Exclusivity to May 6, 2024
------------------------------------------------------------------
The Roman Catholic Bishop of Oakland asked the U.S. Bankruptcy
Court for the Northern District of California for a second
extension of its exclusive periods to file and solicit acceptance
of a chapter 11 plan to May 6, 2024 and July 5, 2024,
respectively.
The Debtor stated since the Court approved the its first request
for an extension of its exclusivity period, it has continued to
provide extensive documentation and information to the Official
Committee of Unsecured Creditors and the United States Trustee,
obtained approval of a claims bar date and begun review of filed
claims, aggressively pursued recovery on its insurance assets
through two adversary proceedings, and engaged extensively with
the official Committee and certain of its historical insurance
carriers. The Debtor stated that it will be producing documents
to the insurers and will continue to pursue coverage from the
insurers under its applicable insurance policies.
The Debtor also stated that it has reached agreement with the
Committee regarding proposed mediators, and has likewise
requested the insurers to provide names of possible mediators for
use in connection with mediating coverage issues with the
insurers.
The Debtor explained that it needs additional time to evaluate
how a plan can best be structured, to review and analyze claims
following the claims bar date, and continue to negotiate and
ultimately mediate with the Committee and other constituencies
including the insurers. The Debtor added that it also needs
additional time to prosecute and liquidate its claims against the
insurers in two adversary proceedings filed in its Chapter 11
Case, which the Debtor believes will materially increase the
assets available to satisfy claims.
The Roman Catholic Bishop of Oakland is represented by:
Jeffrey R. Blease, Esq.
Thomas F. Carlucci, Esq.
Shane J. Moses, Esq.
Emil P. Khatchatourian, Esq.
Ann Marie Uetz, Esq.
Matthew D. Lee, Esq.
FOLEY & LARDNER LLP
555 California Street, Suite 1700
San Francisco, CA 94104-1520
Email: jblease@foley.com
tcarlucci@foley.com
smoses@foley.com
ekhatchatourian@foley.com
auetz@foley.com
mdlee@foley.com
About The Roman Catholic Bishop of Oakland
The Roman Catholic Bishop of Oakland, a tax-exempt religious
organization, sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Cal. Case No. 23-40523) on May 8,
2023. In the petition signed by Bishop Michael Charles Barber,
the Debtor disclosed $100 million to $500 million in both assets
and liabilities.
Judge William J. Lafferty oversees the case.
The Debtor tapped Foley & Lardner LLP as legal counsel and
Alvarez & Marsal North America, LLC as restructuring advisor.
Kurtzman Carson Consultants LLC is the Debtors' claims and
noticing agent and administrative advisor.
The U.S. Trustee for Region 17 appointed an official committee to
represent unsecured creditors in the Debtor's Chapter 11 case.
The committee tapped Lowenstein Sandler, LLP as bankruptcy
counsel; Burns Bair LLP as special insurance counsel; and
Berkeley Research Group, LLC as financial advisor.
BOULDER CANYON: Unsecureds Get Paid From Sale of Properties in Plan
-------------------------------------------------------------------
Boulder Canyon, LLC, submitted a Chapter 11 Small Business Plan and
a Disclosure Statement.
The Court has entered an order conditionally approving the
Disclosure Statement, and setting a hearing to consider
confirmation of the Plan and final approval of the Disclosure
Statement for Jan. 5, 2024, at 10:00 a.m., at Greenville, S.C.
Objections are due Dec. 29, 2023.
The Debtor is presently completing the renovations to its remaining
projects and anticipates generating the funds necessary to fund the
proposed Plan.
Under the Plan, Class 3 consists of General unsecured class. This
class will receive payment from the sale of the properties listed
in the attached Exhibit B with the following link:
https://tinyurl.ph/URWDb. Payments from the properties listed in
the attached Exhibit B will begin on the 1st day of the calendar
quarter (i.e., January 1st, April 1st, July 1st, or October 1st)
following confirmation and on the first (1st) day of each
consecutive quarter thereafter. Any properties remaining as of
December 31, 2024, will be auctioned and the proceeds distributed
to this class by no later than March 31, 2025. The Debtor estimates
that the allowed amount of all claims will be paid in full. Class 3
is impaired.
Payments and distributions under the Plan will be funded from the
projections.
Attorney for the Plan Proponent:
Randy A. Skinner, Esq.
300 North Main St, Suite 201
Greenville, SC 29601
Tel: (864) 232-2007
E-mail: rskinner@skinnerlawfirm.com
A copy of the Disclosure Statement dated November 28, 2023, is
available at https://tinyurl.ph/WouhG from PacerMonitor.com.
About Boulder Canyon
Boulder Canyon, LLC, is a limited liability company in the business
of purchasing and rehabilitating residential real estate. Boulder
Canyon was formed by Dan Ray Kiely and Jason May. Boulder was
formed in 2017 as a Florida limited liability company. Kiely is an
individual who began investing in Florida real estate in 1970.
Boulder Canyon, LLC, sought protection for relief under Chapter 11
of the Bankruptcy Code (Bankr. D.S.C. Case No. 23-00258) on Jan.
27, 2023, with $50,001 to $100,000 in assets and $500,001 to $1
million in liabilities. Judge Elisabetta G.M. Gasparini oversees
the case.
The Debtor tapped Randy A. Skinner, Esq., at Skinner Law Firm, LLC,
as bankruptcy counsel and William McKibbon, III, Esq., an attorney
serving Greenville, S.C., as special counsel.
BRISTOL SPRINGS: Seeks to Hire Amore Law as Bankruptcy Counsel
--------------------------------------------------------------
Bristol Springs Custom Homes, LLC seeks approval from the U.S.
Bankruptcy Court for the Northern District of West Virginia to
employ Amore Law, PLLC, as its counsel.
The firm will render these services:
a. assist the Debtor with preparation of schedules, the plan,
statement of financial affairs and other required filings;
b. give the Debtor legal advice regarding its interests in the
management of the property of the estate;
c. prepare motions and responses to motions which affect the
interests of the Debtor;
d. defend against motions and objections which affect the
interests of the Debtor; attend hearings, and
e. provide such general and other duties as may be necessary
through the Chapter 11 case.
Amore Law will be paid at these hourly rates:
Attorneys $500
Paralegals $125
Amore Law will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Aaron C. Amore, partner of Amore Law, PLLC, assured the Court that
the firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code and does not represent any
interest adverse to the Debtor and its estates.
Amore Law can be reached at:
Aaron C. Amore, Esq.
AMORE LAW, PLLC
206 West Liberty Street
Charles Town, WV 25414
Tel: (304) 885-4117
About Bristol Springs Custom Homes, LLC
Bristol Springs Custom Homes, LLC filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Court (Bankr. N.D. W.Va.
Case No. 23-00537) on November 6, 2023.
Aaron C. Amore, Esq. at AMORE LAW, PLLC represents the Debtor as
counsel.
BRISTOL SPRINGS: Seeks to Hire Betty Hogenthorp as Manager
----------------------------------------------------------
Bristol Springs Custom Homes, LLC seeks approval from the U.S.
Bankruptcy Court for the Northern District of West Virginia to
employ Betty Hogenthorp as its manager.
The Debtor asserts that maintaining Betty Hogenthorp as office
manager is a necessary incident of ongoing operations, and
retention of the same will allow the opportunity for the business
to continue operating smoothly and generating revenue.
Ms. Hogenthorp will receive compensation in the amount of $1,000
per week.
Ms. Hogenthorp can be reached at:
Betty Hogendorp
Bristol Springs Custom Homes, LLC
462 Anacostia Ln
Hedgesville, WV 25427-7550
Telephone: (304) 620-4306
Email: bristolspringswv@gmail.com
About Bristol Springs Custom Homes, LLC
Bristol Springs Custom Homes, LLC filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Court (Bankr. N.D. W.Va.
Case No. 23-00537) on November 6, 2023.
Aaron C. Amore, Esq. at AMORE LAW, PLLC represents the Debtor as
counsel.
BRISTOL SPRINGS: Seeks to Hire Charles D. Hogenthorp as Director
----------------------------------------------------------------
Bristol Springs Custom Homes, LLC seeks approval from the U.S.
Bankruptcy Court for the Northern District of West Virginia to
employ Charles D. Hogenthorp as its continuing director of field
operations .
The Debtor asserts that maintaining Charles D. Hogenthorp as
director of field operations is a necessary incident of ongoing
operations, and retention of the same will allow the opportunity
for the business to continue operating smoothly and generating
revenue.
Mr. Hogenthorp will receive compensation in the amount of $1,000
per week.
Mr. Hogenthorp can be reached at:
Charles D. Hogenthorp
Bristol Springs Custom Homes, LLC
462 Anacostia Ln
Hedgesville, WV 25427-7550
Telephone: (304) 620-4306
Email: bristolspringswv@gmail.com
About Bristol Springs Custom Homes, LLC
Bristol Springs Custom Homes, LLC filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Court (Bankr. N.D. W.Va.
Case No. 23-00537) on November 6, 2023.
Aaron C. Amore, Esq. at AMORE LAW, PLLC represents the Debtor as
counsel.
BRISTOL SPRINGS: Taps Charles D. Hogenthorp as Site Supervisor
--------------------------------------------------------------
Bristol Springs Custom Homes, LLC seeks approval from the U.S.
Bankruptcy Court for the Northern District of West Virginia to
employ Charles D. Hogenthorp as its site supervisor.
The Debtor asserts that maintaining Charles D. Hogenthorp as
director of field operations is a necessary incident of ongoing
operations, and retention of the same will allow the opportunity
for the business to continue operating smoothly and generating
revenue.
Mr. Hogenthorp will receive compensation in the amount of $1,000
per week.
Mr. Hogenthorp can be reached at:
Charles D. Hogenthorp
Bristol Springs Custom Homes, LLC
462 Anacostia Ln
Hedgesville, WV 25427-7550
Telephone: (304) 620-4306
Email: bristolspringswv@gmail.com
About Bristol Springs Custom Homes, LLC
Bristol Springs Custom Homes, LLC filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Court (Bankr. N.D. W.Va.
Case No. 23-00537) on November 6, 2023.
Aaron C. Amore, Esq. at AMORE LAW, PLLC represents the Debtor as
counsel.
BROOKLYN PARK: Seeks to Extend Plan Soliciation to January 25, 2024
-------------------------------------------------------------------
Brooklyn Park Slope Fitness, LLC asked the U.S. Bankruptcy Court
for the Eastern District of New York to extend its exclusive
right to solicit acceptances to its plan of reorganization to
January 25, 2024.
The Debtor stated that it has timely filed a plan of
reorganization on May 30, 2023. The Debtor explained that the
requested extension of its exclusive solicitation period will
allow it to litigate or resolve its dispute pending before the
Court and then, if successful, confirm a plan of reorganization
that provides for payment to all classes of creditors, and thus
bring its case to a successful conclusion.
The Debtor also explained that although its case is not large,
the Debtor has been dealing with several issues, including:
(i) a dispute with the Small Business Administration, and
(ii) a long-standing dispute with the current owners
regarding the reduction in pending spaces available to
the Debtor's gym members under the Lease and Put/Call
Agreement.
Brooklyn Park Slope Fitness, LLC is represented by:
Fred B. Ringel, Esq.
Steven B. Eichel, Esq.
LEECH TISHMAN ROBINSON BROG, PLLC
875 Third Avenue, 9th Floor
New York, NY 10022
Tel: (212) 603-6300
About Brooklyn Park Slope Fitness
Brooklyn Park Slope Fitness, LLC operates the Retro Fitness of
Brooklyn Park Slope in New York.
Brooklyn Park Slope Fitness filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.Y.
Case No. 23-41129) on March 31, 2023, with $438,845 in assets and
$1,521,906 in liabilities. The petition was signed by Fidelia
Perez as manager.
Judge Elizabeth S. Stong presides over the case.
The Debtor tapped Fred B. Ringel, Esq., at Leech Tishman Robinson
Brog, PLLC as bankruptcy counsel; the Law Office of Joseph J.
Schwartz, P.C. as special litigation counsel; and El Kady, CPA,
PC as accountant.
BRYANT PORTABLE: Seeks to Hire Ahlgren Law Office as Counsel
------------------------------------------------------------
Bryant Portable Welding, Inc. seeks approval from the U.S.
Bankruptcy Court for the District of North Dakota to hire Erik A.
Ahlgren and Ahlgren Law Office, PLLC as its counsel.
The Debtor requires Ahlgren to:
(a) represent the Debtor in all legal matters arising during
the control of Debtor's assets;
(b) represent the Debtor in all legal matters arising during
the determination of claims;
(c) negotiate with the creditors and third parties;
(d) prepare and form a plan to be presented to the creditors;
and,
(e) perform such other services as are necessary for the
exercise of any and all rights available to the Debtor.
Ahlgren will be paid at these hourly rates:
Erik A. Ahlgren $335
Sarah Duffy $275
Staff $170
Ahlgren will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Erik A. Ahlgren, principal attorney of Ahlgren, assured the Court
that the firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code and does not represent any
interest adverse to the Debtors and their estates.
Ahlgren can be reached at:
Erik A. Ahlgren, Esq.
AHLGREN LAW OFFICE, PLLC
220 West Washington Avenue, Suite 105
Fergus Falls, MN 56537
Telephone: (218) 998-2775
Email: erik@ahlgrenlaw.net
About Bryant Portable Welding, Inc.
Bryant Portable Welding, Inc. filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. D.N.D. Case
No. 23-30416) on November 16, 2023. The petition was signed by Roy
Jeffrey Bryant as president. At the time of filing, the Debtor
estimated $814,483 in assets and $1,590,690 in liabilities.
BUSHWICK BEER: Has Deal on Cash Collateral Access
-------------------------------------------------
Bushwick Beer Garden LLC, dba Rebel Cafe and Garden and The Kantrow
Law Group, PLLC advised the U.S. Bankruptcy Court for the Eastern
District of New York that they have reached an agreement regarding
the use of cash collateral and now desire to memorialize the terms
of this agreement into an agreed order.
Prior to the Petition Date, the Debtor entered into and executed
several loan agreements with the various pre-petition lenders,
which Lenders are: (i) the United States Small Business
Administration; (ii) Redbow Capital, LLC and (iii) Gem Funding
LLC.
On September 13, 2023, Gem filed a UCC termination such that it no
longer holds a secured claim against the Debtor.
On October 3, 2023, Redbow filed a UCC termination such that it no
longer holds a secured claim against the Debtor.
SBA holds a senior lien on and against, inter alia, cash collateral
and on all personal property assets of the Debtor as more fully set
forth in the Security Agreement and Loan Document.
On July 8, 2021, the Debtor executed a Second Modification of Note
in favor of SBA, evidencing a loan in the amount of $500,000.
The security interests granted to SBA under the Security Agreement
are perfected by way of the financing statement filed with the New
York State Department of State Uniform Commercial Code Division on
February 10, 2021 at File Number 202102105245864.
As a result of the foregoing Loan Documents, SBA holds a
pre-petition first priority lien on all of the Personal Property
Collateral of the Debtor.
The Debtor reaffirms and ratifies all of the Loan Documents,
including all terms, conditions and obligations thereunder and
further acknowledges and agrees that as of June 2, 2023, the
indebtedness under the terms of the Loan Documents is $467,829,
together with additional interest at the contractual per diem rate
plus late charges and fees and costs.
The parties agree that the Debtor may use cash collateral in
accordance with the budget, with a 10% variance.
As adequate protection, the SBA will be granted a replacement lien
on the post-petition assets of the Debtor of the same type and to
the same extent and priority it possessed in the Debtor's assets
prior to the Petition Date. The amount and/or extent of the
Replacement Liens will be limited to the amount of any decrease in
the value of SBA's interest in the Pre-Petition collateral,
resulting from the Debtor's use of the Pre-Petition collateral.
SBA expressly agrees to a "carveout" from its Collateral, which
carveout will include:
(i) the payment of the United States Trustee Quarterly fees
pursuant to 28 U.S.C. Section 1930 and interest due thereon
pursuant to 37 U.S.C. Section 3717;
(ii) fees and expenses of a Chapter 7 trustee in an amount not
to exceed $10,000;
(iii) fees and expenses of the Debtor's retained professionals
that are incurred on or prior to the entry of an Order confirming
the Debtor's chapter 11 plan or an Event of Default resulting in
termination, to the extent that the amounts are approved by the
Bankruptcy Court upon proper notice and motion, not to exceed in
the aggregate the sum of $75,000; and
(iv) the Avoidance Actions.
As further adequate protection for SBA's interests in the
Collateral, including the cash collateral, the Debtor will pay, on
a monthly basis, the sum of $2,474 to SBA on a continuing basis as
provided for in the various Interim Orders authorizing the Debtor's
use of cash collateral until the occurrence of a Termination Date
or the confirmation of a plan of reorganization proffered by the
Debtor, whichever occurs first.
The Debtor represents to SBA that its insurance policies required
under the terms of the Loan Documents are in full force and effect
and that the policies fully cover SBA's collateral.
These events constitue an "Event of Default":
(a). The Debtor's breach of any provision, term or condition of the
Order, failure to timely provided financial information, reports,
comply with the Budget or provide budget detail if reasonably
requested by the SBA;
(b). The conversion or dismissal of the chapter11 case, unless the
SBA consents to such dismissal or conversion;
(c). The Bankruptcy Court's refusal to enter the Order.
A hearing on the matter is set for January 29, 2024 at 3 p.m.
A copy of the stipulation is available at
https://urlcurt.com/u?l=3eaujU 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.
CARVANA CO: S&P Assigns 'CCC+' Rating on Senior Secured Debt
------------------------------------------------------------
S&P Global Ratings assigned its unsolicited 'CCC+' rating to
Carvana Co.'s senior secured debt.
The debt consists of approximately $981 million of 9%/12%
cash/payment-in-kind (PIK) senior secured notes due in 2028; $1.471
billion of 9%/11%/13% cash/PIK senior secured notes due in 2030,
and $1.741 billion of 9%/14% cash/PIK senior secured notes due in
2031. Consistent with S&P's policies and procedures, it assigned an
unsolicited rating on this debt issue because its believe there is
sufficient market interest in Carvana and its senior secured debt.
The unsolicited recovery rating on the senior secured debt is '4'
(30%-50%; rounded estimate: 30%), indicating average recovery
prospects.
S&P said, "Our other issue-level ratings within Carvana's capital
structure are unchanged. The senior unsecured debt is rated 'CCC-'
with a '6' recovery rating. The new senior secured notes were
issued on Sept. 1, 2023, as part of a restructuring transaction in
which the company exchanged senior unsecured debt for senior
secured debt. The updated recovery analysis is below.
"On Sept. 11, we upgraded Carvana to 'CCC+' following its debt
restructuring, which involved exchanging most of its senior
unsecured debt for senior secured debt. We continue to view the
capital structure as unsustainable given the high leverage and
medium-term liquidity risk. Carvana recently improved its earnings
and cash flow through one-time loan sales, inventory reduction,
better unit economics through cost reductions, and lower selling,
general, and administrative costs, primarily from headcount
reductions and reduced advertising spending. However, the company
lacks a track record of consistently generating positive free cash
flow without benefitting from substantial loan sales or low
interest rates. Furthermore, we believe it could come under
liquidity pressure once the senior secured debt requires cash
interest payments in two years."
ISSUE RATINGS - RECOVERY ANALYSIS
Key analytical factors
-- S&P's hypothetical default scenario assumes Carvana fails to
improve its margins, which leads it to burn cash faster than
anticipated.
-- S&P uses a combined discrete asset value (DAV) and enterprise
value (EV) EBITDA multiple approach to value the company. S&P uses
the EBITDA multiple approach for Carvana's operating business and
the DAV approach for its vehicle inventory, which it finances with
floor plan financing.
Simulated default assumptions
-- Year of default: 2025
-- EBITDA multiple: 6x
-- Jurisdiction: U.S.
-- Administrative claims: 5% of EV
-- All debt includes six months of accrued interest.
Simplified waterfall
-- Gross enterprise value: $3.1 billion ($2.2 billion EV multiple
and $900 million DAV)
-- Net recovery value for waterfall after 5% administrative
expenses: $2.9 billion
-- Priority claims: $1 billion
-- Total collateral value available to secured debt: $1.9 billion
-- Total first-lien debt: $5.6 billion
--Recovery expectations: 30%-50% (rounded estimate: 30%)
-- Total collateral available to senior unsecured claims: $0
-- Total unsecured claims: $3.9 billion
--Recovery expectations: 0%-10% (rounded estimate: 0%)
Ratings List
NEW RATING
CARVANA CO.
Senior Secured
US$1.471 bil Cash/PIK nts due 06/01/2030 |U^ CCC+
Recovery Rating |U^ 4(30%)
US$1.741 bil Cash/PIK nts due 06/01/2031 |U^ CCC+
Recovery Rating |U^ 4(30%)
US$980.815 mil Cash/PIK nts due 12/01/2028 |U^ CCC+
Recovery Rating |U^ 4(30%)
|U^ Unsolicited ratings with issuer participation, access to
internal documents and access to management.
CENTRAL NEW YORK RACEWAY: Taps Maltz Auctions as Real Estate Agent
------------------------------------------------------------------
Central New York Raceway Park, Inc. seeks approval from the U.S.
Bankruptcy Court for the Northern District of New York to hire
Maltz Auctions, Inc. as its broker and marketing agent.
The firm will market and sell the Debtor's real property located at
172 a/k/a 220 US Route 11, Central Square, New York 13036.
The firm will render these services:
a. advertise and market the real property for sale;
b. undertake to find a purchaser for the real property, upon
terms and conditions acceptable to the Debtor;
c. make available to prospective purchasers, upon request,
information regarding the availability of inspections of the real
property;
d. report to the Debtor regarding expressions of interest in
the real property;
e. assist in preparing a purchase offer with an attorney
approval clause;
f. follow up with purchaser and/or purchaser's designee once a
contract is negotiated; and
g. update the Debtor regarding fulfillment of contract
contingencies.
The firm will receive a commission as follows:
a. A buyer's premium on the sale, or in the event a Court
approved auction is held, the high bid of the real property sold at
auction, representing Maltz's sole compensation, which shall be a 6
percent buyer's premium, to be paid by the purchaser or successful
bidder (the "Buyer's Premium"). In the event any current senior
mortgagee is the successful bidder, by bidding an amount up to its
secured clam, they shall only be required to pay Maltz a reduced
Buyer's Premium of 2 percent. Any subsequent assignees shall pay
the 6 percent Buyer's Premium.
b. If the real property is withdrawn from the auction for any
cause (excluding the mutual withdrawal of Maltz and the Debtor), or
is sold at private sale before the auction by or on the behalf of
the Debtor or Maltz, the Debtor shall pay to Maltz an amount equal
to the greater of, 6 percent of the reserve price of the real
property withdrawn, or 6 percent of the selling price of the real
property sold privately.
c. If the real property is sold within the 180 days following
the auction to any party who was in contact with Maltz at any
inspection, auction, or otherwise, the Debtor shall pay Maltz an
amount equal to 6 percent of the selling price of the real
property.
d. If, during the term, the Debtor enters into an agreement to
refinance, borrow against, restructure its existing debt
encumbering the real property, and/or recapitalize the real
property, in whole or in part, and/or enter into a joint venture
agreement relating to the real property, then Debtor will pay
Maltz, at closing, a fee in an amount calculated in the same manner
as the Commission based upon the aggregate amount of gross
refinancing or restructured indebtedness, recapitalization, and/or
joint venture investment received or obtained, or to be received or
obtained by Debtor, as the case may be, regardless of when the
closing of same takes place.
e. If the successful bidder for the real property is
registered by a Buyer's Broker in accordance with the Broker
Participation Guidelines, then such Buyer's Broker shall be
entitled to 2 percent of the high bid at auction (the "Buyer Broker
Commission"). The distribution of the Buyer Broker Commission will
be disbursed to the Buyer's Broker from Maltz's Buyer's Premium,
upon the closing of the sale of the real property, and without
further order of the Bankruptcy Court. In the event that the real
property is sold without any Buyer Broker Participation, then Maltz
agrees to credit back to the Seller 1 percent of the Buyer's
Premium.
f. Maltz has explicitly waived any entitlement to costs
associated with marketing the real property, with 100 percent of
all costs associated with Marketing Related Activities to be borne
by Maltz.
Scott Bogucki, Esq., a partner at Gleichenhaus, disclosed in court
filings that his firm is a "disinterested person" pursuant to
Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Richard B. Maltz
Maltz Auctions, Inc.
39 Windsor Place
Central Islip, NY 11722
Tel: (516) 349-7022
Fax: (516) 349-0105
About Central New York Raceway Park
Central New York Raceway Park, Inc. is a privately-owned
corporation, with its principal place of business in Central
Squaret, N.Y., and its principal assets located in Oswego County.
Central New York Raceway Park filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. N.D.N.Y. Case No.
23-30367) on May 30, 2023, with $1 million to $10 million in assets
and $10 million to $50 million in liabilities. Glenn Donnelly,
president, signed the petition.
Judge Wendy A. Kinsella oversees the case.
Scott J. Bogucki, Esq., at Gleichenhaus, Marchese & Weishaar, P.C.
is the Debtor's legal counsel.
CENTRAL OKLAHOMA: No Supply Concerns, PCO Report Says
-----------------------------------------------------
Cori Loomis, the patient care ombudsman, filed with the U.S.
Bankruptcy Court for the Western District of Oklahoma a report to
monitor the quality of care provided to residents living in Central
Oklahoma United Methodist Retirement Facility, Inc.'s facilities.
During an in-person visit, the PCO found that Epworth Villa is
clean and well-maintained, both the interior and exterior.
Moreover, the facility also provides a closed-circuit TV station
for announcements and other information that residents can access
from their living quarters.
One resident the PCO spoke with leads a choir that meets weekly
that has 36 members. She was a professional choir director and now
volunteers her services at the facility. Other residents also
coordinate activities that are consistent with their interests or
talents.
The PCO spoke with Ron Kelly, President and Chief Executive
Officer, and Michelle Brown, Director of Health Services, who
indicated that there have been no employee lay-offs since the
bankruptcy and there has not been any issues with obtaining medical
supplies or equipment or food and no disruptions in utilities or
services.
The PCO observed that meal services were orderly and when
questioned, the residents and patients indicated they enjoyed the
food and service. All residents and patients observed were
appropriately attired and were all wearing shoes of some type. Many
residents used walkers, which all appeared in good working order.
The PCO stated that the Epworth Villa is an impressive facility and
the residents and patients appear to enjoy living there and are
taken care of well.
A copy of the ombudsman report is available for free at
https://urlcurt.com/u?l=zo0QzY from PacerMonitor.com.
Attorney for PCO:
Brock Z. Pittman, Esq.
Christensen Law Group, P.L.L.C.
3401 N.W. 63rd Street, Suite 600
Oklahoma City, Oklahoma 73116
Telephone: 405-232-2020
Facsimile: 405-228-1113
Email: brock@christensenlawgroup.com
About Central Oklahoma
Central Oklahoma United Methodist Retirement Facility, Inc., doing
business as Epworth Villa, is a locally owned not-for-profit Life
Plan Community serving senior adult singles and couples ages 55 and
above.
The Debtor filed Chapter 11 petition (Bankr. W.D. Okla. Case No.
23-12607) on Sept. 29, 2023, with $10 million to $50 million in
assets and $50 million to $100 million in liabilities. Ron Kelly,
president and chief operating officer, signed the petition.
Judge Sarah A. Hall oversees the case.
The Debtor is represented by Sidney K. Swinson, Esq., at Gable &
Gotwals.
Cori Loomis is the patient care ombudsman appointed in the Debtor's
bankruptcy case.
CITY EATS: Seeks to Hire Kelley & Clements as Bankruptcy Counsel
----------------------------------------------------------------
City Eats, LLC seeks approval from the U.S. Bankruptcy Court for
the Northern District of Georgia to employ Kelley & Clements LLP as
counsel.
The firm's services include:
a. providing substantive and strategic advice on how to
accomplish the Debtor's goals in connection with the prosecution of
its bankruptcy case;
b. advising the Debtor of its obligations, duties and rights
under the Bankruptcy Code;
c. preparing legal documents, including the Debtor's Chapter
11 plan and disclosure statement;
d. appearing in court and at any meeting with the U.S. trustee
and creditors;
e. performing various services to administer the case,
including, without limitation, (i) preparing motions,
certifications of counsel, notices of fee applications, motions and
hearings, and hearing binders of documents and pleadings, (ii)
monitoring the docket for filings, (iii) monitoring pending
applications, motions, hearing dates, and other matters and the
deadlines associated therewith, (iv) handling inquiries regarding
pending matters and the general status of the case; and (v)
providing notice to parties in interest in compliance with the
court's direction;
f. interacting and communicating with the court's chambers and
clerk's office; and
g. preparing, reviewing, revising, filing, and prosecuting
motions and other pleadings related to contested matters, executory
contracts and unexpired leases, asset sales, plan and disclosure
statement issues, and claims administration and resolving
objections and other matters relating thereto; and
h. performing all other services necessary to prosecute Debtor's
chapter 11 case to a successful conclusion.
The firm will be paid at these rates:
Charles N. Kelley, Jr., Partner $450 per hour
Jonathan D. Clements, Partner $250 per hour
Tammy A. Winkler, Paralegal $165 per hour
The Debtor paid an advance retainer of $3,500.
Charles N. Kelley, Jr., Esq., a partner at Kelley & Clements LLP,
disclosed in court filings, Kelley & Clements is a "disinterested
person" as that phrase is defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Charles N. Kelley, Jr., Esq.
KELLEY & CLEMENTS LLP
PO Box 2758
Gainesville, GA 30503
Phone: (770) 531-0007
Email: ckelley@kelleyclements.com
About City Eats, LLC
City Eats, LLC sought protection for relief under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Ga. Case No. 23-60884) on November 3,
2023, listing under $1 million in both assets and liabilities.
Charles N. Kelley, Jr. at Kelley & Clements LLP represents the
Debtor as counsel.
CLOVER FAST FOOD: Court OKs Cash Collateral Access on Final Basis
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware authorized
Clover Fast Food, Inc. to use cash collateral on a final basis in
accordance with the budget.
As previously reported by the Troubled Company Reporter, the Debtor
requires the use of cash collateral to fund working capital and
capital expenditures, and operate and maintain its business and
property.
Prior to the Petition Date, the Debtor and Blue58, LLC, as
collateral agent for the secured lenders entered into a loan
facility pursuant to the following documents and instruments: (a)
various Promissory Notes, from the Debtor payable to Lenders in the
aggregate principal amount of $754,000 and (b) a Secured Promissory
Note Purchase Agreement, dated October 13, 2023, that included
various other documents, including, but not limited to, a
Guarantee, Security Agreement, and Collateral Agent Agreement.
In connection with the Prepetition Loan Documents, Blue58, as
collateral agent, filed a UCC-1 Financing Statement with the
Delaware Secretary of State on October 13, 2023, designated as
filing number 20233731682. As of the Petition Date, the Debtor is
indebted to the Lenders under the Prepetition Loan Documents in an
aggregate amount, including appropriately accrued interest and
other valid fees, of not less than $754,000.
The provisions of the Final Order and any actions taken pursuant
thereto will survive entry of any order (a) confirming any plan of
reorganization in the Chapter 11 Case; (b) converting the Chapter
11 Case to a case under Chapter 7 of the Bankruptcy Code; (c)
dismissing the Chapter 11 Case or any Successor Case; or (d)
pursuant to which the Court abstains from hearing in the Chapter 11
Case or any Successor Case.
A copy of the order is available at https://urlcurt.com/u?l=xk4Rvd
from PacerMonitor.com.
About Clover Fast Food, Inc.
Clover Fast Food, Inc. DBA Clover Food Lab is a vegetarian fast
food chain which operates restaurants around the Boston Metro
Area.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 23-11812) on November 3,
2023. In the petition signed by Julia Wrin Piper, as chief
executive officer, the Debtor disclosed $8,397,968 in total assets
and $4,573,997 in total liabilities.
Judge Brendan Linehan Shannon oversees the case.
Karen M. Grivner, Esq., at Clark Hill PLC, represents the Debtor as
legal counsel.
COHERENT CORP: Fitch Affirms 'BB' LongTerm IDR, Outlook Stable
--------------------------------------------------------------
Fitch Ratings has affirmed Coherent Corp.'s Long-Term Issuer
Default Rating (IDR) at 'BB'. Fitch has also affirmed Coherent's
senior secured revolver and Term Loan B at 'BBB-'/'RR1', as well as
its senior unsecured notes at 'BB'/'RR4'. The Rating Outlook is
Stable.
Coherent's ratings reflect its product and geographic
diversification, as well as positioning within attractive end
markets. While recent performance has delayed the pace at which
Fitch expects Coherent to reduce its leverage, forecast EBITDA
growth and FCF, which Fitch expects will be used to reasonably
prioritize debt repayments, continue to provide visibility to a
return to within leverage sensitivities.
KEY RATING DRIVERS
Delayed Deleveraging Timeline: At LTM fiscal 1Q24, Coherent's
EBITDA leverage was 3.9x, compared with a downgrade sensitivity of
3.5x. Coherent's leverage has been above the downgrade sensitivity
since the close of the legacy Coherent acquisition in July 2022,
and is forecast to remain above the sensitivity until fiscal 2025.
The pace of deleveraging has slowed from Fitch's prior forecast,
which Fitch previously expected to be within sensitivities during
fiscal 2024.
Additionally, Fitch does not expect Coherent's cash from operations
(CFO)-capex/debt sensitivity to be above the 7.5% downgrade level
until fiscal 2026. The slower leverage decline is due to lower than
expected EBITDA levels, which have been affected by a weaker demand
environment. The Stable Outlook is informed by the delay in
leverage reduction not a being a structural change to leverage or
financial policy change. Management maintains a 2.5x gross leverage
target, which, if achieved, would be strong for the 'BB' rating
category.
History of M&A Integration: Through successful M&A, Coherent has
improved its diversification by geography, end market and product
line with only a single customer now accounting for greater than
10% of revenue. Most recently, with the acquisition of legacy
Coherent, the overall revenue contribution of its communications
segment has been reduced to 44% from approximately 65% by fiscal
1Q24. Coherent's vertical integration and product suite, with
annual R&D investment of approximately $0.5 billion, help Coherent
sustain its market positions in competitive segments in which there
is heightened risk of technological change.
Period of Demand Weakness: Recent revenues have been affected by
customers exhibiting spending caution in a weaker macro environment
and market specific trends, such as customers who had accumulated
excess inventory deferring purchases and drawing down on it, which
have negatively affected Coherent's performance. This is
highlighted by a 21.7% revenue decline yoy in fiscal 1Q24.
A return to more normalized inventory levels and beneficial secular
trends, such as an increase in generative AI computing requirements
that support outsized growth in its transceivers business, support
Fitch's revenue growth forecast after fiscal 2024 in the
mid-to-high single digits that may prove conservative.
Expected EBITDA Margin Trough: Fitch expects Coherent's EBITDA
margin of 18.9% in 1Q fiscal 2024 to increase during Fitch's
forecast period to the mid-20% range, with the margin benefiting
from improved operating leverage, sales mix, as well as progress on
Coherent's restructuring plan, which is expected to be completed in
fiscal 2025, along with the realization of remaining synergies from
the legacy Coherent acquisition.
Synergies from this were initially estimated at $250 million, of
which the company realized $73 million through year end fiscal
2023. The company is in a position to capture the remaining cost
efficiencies by the end of fiscal 2025. In the absence of
discretionary debt repayments, Fitch forecasts EBITDA expansion
would bring Coherent's leverage within its sensitivities during
fiscal 2026.
Silicon Carbide Separation: The sale of a 25% interest in
Coherent's Silicon Carbide business to DENSO and Mitsubishi
Electric that is expected to close in 1Q24 should benefit
Coherent's FCF. Coherent spent approximately $175 million on
Silicon Carbide capex in fiscal 2023 and the sale and creation of a
JV subsidiary to hold the Silicon Carbide business. The Silicon
Carbide business' capital spending requirements will be shifted to
the subsidiary, which will receive the $1 billion sale price to use
within the JV. Fitch forecasts Coherent to generate in excess of
$1.1 billion of FCF in aggregate though fiscal 2027, which supports
Coherent's ability to make discretionary debt repayments.
The investment by DENSO and Mitsubishi Electric, in addition to the
agreed long-term supply agreements, adds diverse partners where
there are potential opportunities to benefit from expanded
relationships.
Preferred Share Treatment: Fitch assigned Coherent's Series B
preferred shares 100% equity credit. The assessment under Fitch's
Corporate Ratings Criteria characterizes the preferred shares this
way as they are held by an investor in Bain Capital Private Equity
LP, whose economics and strategic interests Fitch expects will
remain aligned with that of common equity holders. Fitch assumes
these shares, which in March 2025 become payable at Coherent's
option in cash or in-kind, remain paid-in-kind (PIK) through the
rating horizon.
The PIK characteristic of the Series B preferred shares, along with
Coherent's favorable interest rate swap and cap agreements, are
beneficial to Coherent's coverage ratios, which were weakened with
the legacy Coherent acquisition. Forecast EBITDA interest coverage
of 3.6x in fiscal 2024 is low for Coherent's 'BB' rating category,
but expected to trend toward typical 'BB' levels during the
forecast period.
DERIVATION SUMMARY
Coherent compares with direct competitor MKS Instruments, Inc.
(BB+/Negative) as the companies have similar revenue scale, with
MKS having modestly better EBITDA margins. Both companies increased
leverage for recent M&A, and have seen deleveraging expectations
affected by weaker than expected customer demand. MKS' Negative
Outlook reflects that its leverage is forecast to be 5.8x at YE
2023 against a 3.5x downgrade sensitivity, compared with Coherent,
whose LTM fiscal 1Q24 3.9x EBITDA leverage is within half a turn of
its 3.5x downgrade sensitivity.
At the 'BB' rating level, Coherent also compares with Viavi
Solutions Inc. (BB/Stable), which produces optical filters for 3D
sensing. Viavi has smaller revenue scale and comparable operating
EBITDA margin. Gross leverage is lower for Viavi due to an absence
of actionable M&A opportunities, but financial policies are similar
and Fitch expects leverage levels may converge over time.
Broadcom Inc. (BBB-/Stable) is a direct competitor with Coherent in
semiconductor diodes for industrial and consumer markets. Broadcom
has substantially greater revenue scale, EBITDA margins and lower
EBITDA leverage. Similarly to Coherent, Broadcom has a history of
M&A, and heightened leverage at close.
KEY ASSUMPTIONS
- Revenue returns to yoy growth in fiscal 2025 and through the
remainder of the forecast period. Improved performance is supported
by more normalized customer inventory levels and strong transceiver
demand, spurred by increasing generative AI requirements;
- EBITDA margins improve through fiscal 2024 from 1Q24 actual
toward 21% for the year. EBITDA margins further improve during the
forecast period benefiting from cost restructuring, site
rationalizing, as well as improved operating leverage and sales
mix;
- Discretionary debt repayments in excess of amortization amount of
approximately $200 million annually, supporting leverage reduction
toward a 2.5x gross leverage target;
- Series B Preferred stock not converted and remains PIK during
forecast period;
- Silicon Carbide interest sales closes in March 2024. No further
Silicon Carbide ownership stake sales during forecast;
- No cash dividends, share repurchases or further M&A during
forecast period;
- Base interest rates applicable to the company's revolving credit
facility obligations reflects current SOFR forward curve declining
to 4.0% from 5.3% by the end of the forecast period. No revolving
facility draws in forecast.
RATING SENSITIVITIES
Although Fitch considers a positive rating action unlikely in the
near term as Coherent is operating outside of its downside
financial sensitivities, factors that could, individually or
collectively, lead to positive rating action/upgrade are:
- Demonstrated traction in key growth businesses;
- EBITDA leverage sustained below 3.0x;
- (CFO-capex)/debt sustained above 12.5%.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- EBITDA leverage sustained above 3.5x;
- Shift to a more aggressive financial policy;
- (CFO-capex)/debt sustained below 7.5%.
LIQUIDITY AND DEBT STRUCTURE
Adequate Cash Position: At Sept. 30, 2023, Coherent had $1.277
billion of liquidity consisting of $346 million available on its
$350 million revolving credit facility, as well as $931 million of
unrestricted cash. This level of cash is adequate for Coherent's
operational liquidity needs in context of a $500 million minimum
level of readily available cash Coherent management intends to
hold. Forecast FCF that increases annually over the rating horizon,
in conjunction with Coherent's history of no dividends and rare
share repurchases, is expected to support Coherent's liquidity
position through the forecast period.
Coherent has no meaningful near-term maturities before 2027 when
its revolver and originally $850 million Term Loan A are due,
followed by its originally $2.8 billion and $990 million senior
unsecured notes in 2029.
ISSUER PROFILE
Coherent Corp., a global leader in materials, networking, and
lasers, is a vertically integrated manufacturing company that
develops, manufactures, and markets engineered materials,
optoelectronic components and lasers for use in the industrial,
communications, electronics, and instrumentation markets.
ESG CONSIDERATIONS
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Coherent Corp. LT IDR BB Affirmed BB
senior unsecured LT BB Affirmed RR4 BB
senior secured LT BBB- Affirmed RR1 BBB-
COMPLIANCE TESTING: Taps Cunningham & Associates as Appraiser
-------------------------------------------------------------
Compliance Testing, LLC seeks approval from the U.S. Bankruptcy
Court for the District of Arizona to employ Cunningham &
Associates, Inc. as its appraiser.
The Debtor wishes to enlist the services of George Cunningham of
Cunningham & Associates, Inc. for the purpose of providing the
Debtor a written valuation of the equipment used in the Debtor's
operations.
The firm will receive compensation in the amount of $2,000.
As disclosed in court filings, Cunningham & Associates is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached at:
George Cunningham
CUNNINGHAM & ASSOCIATES, INC.
4753 East Falcon Drive, Suite 1
Mesa, AZ 85215
Telephone: (602) 595-6714
Facsimile: (602) 595-6813
About Compliance Testing, LLC
Compliance Testing offers clients with the full testing services
they need to achieve certification success. The Company provides
worldwide compliance testing for FCC, IC and CE marks. The Company
is able to offer services for the U.S., Canada, European Union,
Australia/New Zealand, Korea, Japan and many other markets.
Compliance Testing, LLC in Mesa, AZ, filed its voluntary petition
for Chapter 11 protection (Bankr. D. Ariz. Case No. 23-06163) on
September 6, 2023, listing $628,890 in assets and $5,560,180 in
liabilities. Michael C. Schafer as manager, signed the petition.
Judge Scott H. Gan oversees the case.
ALLAN D. NEWDELMAN, P.C. serve as the Debtor's legal counsel.
CONNEXA SPORTS: Posts $1.8 Million Net Income in Second Quarter
---------------------------------------------------------------
Connexa Sports Technologies Inc. filed with the Securities and
Exchange Commission its Quarterly Report on Form 10-Q reporting net
income of $1.76 million on $2.29 million of net sales for the three
months ended Oct. 31, 2023, compared to a net loss of $11.02
million on $2.44 million of net sales for the three months ended
Oct. 31, 2022.
For the six months ended Oct. 31, 2023, the Company reported net
income of $915,354 on $5.42 million of net sales, compared to a net
loss of $15.29 million on $6.03 million of net sales for the same
period a year ago.
As of Oct. 31, 2023, the Company had $5.46 million in total assets,
$19.86 million in total liabilities, and $14.40 million in total
stockholders' deficit.
Connexa stated, "The Company has an accumulated deficit of
$150,835,256 as of October 31, 2023, and more losses are
anticipated in the development of the business. Accordingly, there
is substantial doubt about the Company's ability to continue as a
going concern. These financial statements do not include any
adjustments related to the recoverability and classification of
assets or the amounts and classification of liabilities that might
be necessary should the Company be unable to continue as a going
concern.
"The ability to continue as a going concern is dependent upon the
Company generating profitable operations in the future and/or being
able to obtain the necessary financing to meet its obligations and
repay its liabilities arising from normal business operations when
they become due. Management intends to finance operating costs
over the next twelve months with existing cash on hand, loans from
related parties, and/or private placement of debt and/or common
stock. In the event that the Company is unable to successfully
raise capital and/or generate revenues, the Company will likely
reduce general and administrative expenses, and cease or delay its
development plan until it is able to obtain sufficient financing.
The Company has begun reducing operating expenses and cash outflows
by selling PlaySight, as well as selling 75% of Foundation Sports
in November and December 2022, respectively to the former
shareholders of those companies. There can be no assurance that
additional funds will be available on terms acceptable to the
Company, or at all. We have recorded the 25% investment in
Foundation Sprots at $0."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1674440/000149315223042728/form10-q.htm
About Connexa Sports
Headquartered in Windsor Mill, Maryland, Connexa Sports --
www.connexasports.com -- is a connected sports company delivering
products, technologies, and services across a range of activities
in sports.
Connexa Sports reported a net loss of $71.15 million for the year
ended April 30, 2023, compared to a net loss of $51.77 million for
the year ended April 30, 2022. As of April 30, 2023, the Company
had $7.11 million in total assets, $25.72 million in total
liabilities, and a total stockholders' deficit of $18.61 million.
Lagos, Nigeria-based Olayinka Oyebola & Co., the Company's auditor
since 2023, issued a "going concern" qualification in its report
dated Sept. 14, 2023, citing that the Company suffered an
accumulated deficit of $(151,750,610), net loss of $(71,153,685)
and a negative working capital of $(18,775,991). These matters
raise substantial doubt about the Company's ability to continue as
a going concern.
CORRELATE ENERGY: Incurs $3.4 Million Net Loss in Third Quarter
---------------------------------------------------------------
Correlate Energy Corp. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $3.38 million on $930,277 of revenues for the three months ended
Sept. 30, 2023, compared to a net loss of $2.59 million on $2.31
million of revenues for the three months ended Sept. 30, 2022.
For the nine months ended Sept. 30, 2023, the Company reported a
net loss of $8.36 million on $5.14 million of revenues, compared to
a net loss of $5.26 million on $2.62 million of revenues for the
nine months ended Sept. 30, 2022.
As of Sept. 30, 2023, the Company had $5.75 million in total
assets, $8.09 million in total liabilities, and a total
stockholders' deficit of $2.35 million.
"The Company has incurred losses since inception and has not
generated positive cash flows from operations. These matters, among
others, raise substantial doubt about the Company's ability to
continue as a going concern," Correlate Energy said.
"The Company's ability to continue in existence is dependent on its
ability to develop additional sources of capital, and/or achieve
profitable operations and positive cash flows. Management's plans
with respect to operations include aggressive marketing,
acquisitions, and raising additional capital through sales of
equity or debt securities as may be necessary to pursue its
business plans and sustain operations until such time as the
Company can achieve profitability. Management believes that
aggressive marketing combined with acquisitions and additional
financing as necessary will result in improved operations and cash
flow in 2024 and beyond. However, there can be no assurance that
management will be successful in obtaining additional funding or in
attaining profitable operations," Correlate Energy said.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1108645/000147793223008373/cipi_10q.htm
About Correlate
Correlate Energy Corp. (OTCQB: CIPI), formerly Correlate
Infrastructure Partners Inc., together with its subsidiaries, is a
technology-enabled vertically integrated sales, development, and
fulfillment platform focused on distributed clean and resilient
energy solutions North America. The Company believes scaling
distributed clean energy solutions is critical in mitigating the
effects of climate change.
Correlate reported a net loss of $7.16 million on $3.40 million of
revenues for the year ended Dec. 31, 2022, compared to a net loss
of $90,249 for the year ended Dec. 31, 2021. As of Dec. 31, 2022,
the Company had $2.26 million in total assets, $5.06 million in
total liabilities, and a total stockholders' deficit of $2.80
million.
Dallas, Texas-based Turner, Stone & Company, L.L.P., the Company's
auditor since 2006, issued a "going concern" qualification in its
report dated March 31, 2023, citing that the Company has suffered
recurring losses from operations and has not generated positive
cash flows which raises substantial doubt about its ability to
continue as a going concern.
COSMOS GROUP: Posts $49.8 Million Net Loss in Third Quarter
-----------------------------------------------------------
Cosmos Group Holdings Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
attributable to common shareholders of $49.78 million on $0 of net
revenue for the three months ended Sept. 30, 2023, compared to a
net loss attributable to common shareholders of $7.19 million on
$2.49 million of net revenue for the three months ended Sept. 30,
2022.
For the nine months ended Sept. 30, 2023, the Company reported a
net loss attributable to common shareholders of $64.55 million on
on $597,351 of net revenue, compared to a net loss attributable to
common shareholders of $90.24 million on $8.05 million of net
revenue for the same period last year.
As of Sept. 30, 2023, the Company had $19.44 million in total
assets, $53.63 million in total liabilities, and a total deficit of
$34.18 million.
Cosmos Group said, "The Company has suffered from an accumulated
deficit of $192,659,942 and working capital of $44,919,517 at
September 30, 2023. The continuation of the Company as a going
concern in the next twelve months is dependent upon the continued
financial support from its stockholders. Management believes the
Company is currently pursuing additional financing for its
operations. However, there is no assurance that the Company will
be successful in securing sufficient funds to sustain the
operations. These and other factors raise substantial doubt about
the Company's ability to continue as a going concern."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1706509/000121390023089616/f10q0923_cosmos.htm
About Cosmos Group
COSG is a Nevada holding company with operations conducted through
our subsidiaries based in Singapore and Hong Kong. The Company,
through its subsidiaries, is engaged in two business segments: (i)
the physical arts and collectibles business, and (ii) the
financing/money lending business.
Cosmos Group reported a net loss of $104.13 million in 2022,
compared to a net loss of $25.15 million in 2021, a net loss of
$245,740 in 2020, and a net loss of $683,537 in 2019.
CROWN EUROPEAN: Moody's Rates New Senior Unsecured Notes 'Ba1'
--------------------------------------------------------------
Moody's Investors Service assigned a Ba1 rating to the new backed
senior unsecured notes issued by Crown European Holdings S.A.
(Crown European), a subsidiary of Crown Holdings, Inc. Crown
Holdings, Inc.'s (Crown) Ba1 corporate family rating, Ba1-PD
probability of default rating, SGL-2 speculative grade liquidity
rating (SGL) and stable outlook remain unchanged. The instrument
ratings assigned to the group's subsidiaries also remain
unchanged.
"Over the near term, Moody's expect that part of the cash proceeds
will be maintained on the balance sheet given the current high
interest rate environment," said Motoki Yanase, VP – Senior
Credit Officer at Moody's.
"Moody's still expect the company will use the cash proceeds to
paydown a part of the group's term loan facilities and eventually
repay its Euro senior unsecured notes maturing in 2024," added
Yanase.
RATINGS RATIONALE
Crown's Ba1 CFR is supported by the consolidated industry structure
in the can segment, and the stable alcoholic/nonalcoholic beverage
end markets. Its credit profile is also supported by a large base
of installed equipment in the transit packaging segment, which
drives a high percentage of recurring consumables sales. Crown also
benefits from geographic diversification. The rating also reflects
Moody's expectation that Crown will maintain financial discipline
by controlling share repurchase to keep its net leverage between
the 3.0x and 3.5x range that it targets.
On the other hand, the Ba1 CFR is constrained by the company's high
customer and product concentration of sales and exposure to the
cyclical end markets in the transit packaging segment.
Additionally, the fragmented and competitive industry structure in
the transit packaging segment makes growth and margin expansion
difficult. The company also has an outstanding asbestos liability,
which Moody's add to total debt as part of Moody's adjustments.
The stable outlook reflects Moody's expectation that Crown will be
able to improve its free cash flow generation in 2024, and that the
company will focus on its stated leverage target and control its
share repurchases accordingly.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
Moody's could upgrade the rating if Crown sustainably improves its
credit metrics within the context of a stable competitive
environment and maintains good liquidity. An upgrade would also
require a more streamlined debt capital structure and the
flexibility of an unsecured capital structure. Specifically, the
ratings could be upgraded if total debt/EBITDA is below 3.5x and
free cash flow/debt is over 10%.
Moody's could downgrade the rating if credit metrics, liquidity or
the competitive environment deteriorate. Specifically, the rating
could be downgraded if total debt/EBITDA rises above 4.25x, free
cash flow/debt falls below 6.0%, or EBITDA/Interest expense is
below 5.0x.
The principal methodology used in this rating was Packaging
Manufacturers: Metal, Glass and Plastic Containers published in
December 2021.
Headquartered in Yardley, Pennsylvania, Crown Holdings, Inc. (NYSE:
CCK), is a global manufacturer of steel and aluminum containers for
food, beverage, and consumer products. Crown also manufactures
protective packaging products and solutions. For the twelve months
ending September 2023, the company generated about $12.1 billion in
revenue.
CROWN EUROPEAN: S&P Assigns New EUR400MM Unsecured Notes 'BB+'
--------------------------------------------------------------
S&P Global Ratings assigned its 'BB+' issue-level rating and '3'
recovery rating to Crown Holdings Inc.'s subsidiary, Crown European
Holdings S.A.'s, proposed EUR400 million unsecured notes. The '3'
recovery rating indicates its expectation for meaningful recovery
(50%-70%; rounded estimate: 65%) in a default scenario.
Crown will use the proceeds to partially paydown its term loan
facilities and for general corporate purposes, which S&P expects
will include the eventual repayment of its 2.625% EUR600 million
notes due in 2024. All other ratings on Crown, including the 'BB+'
issuer credit rating, are unchanged.
ISSUE RATINGS--RECOVERY ANALYSIS
Key analytical factors
-- S&P said, "We assume a simulated default occurring in 2028 and
a gross enterprise value (EV) of $6.189 billion, based on a 6x
multiple and an estimated distressed emergence EBITDA of $1.032
billion. A payment default would require a substantial and
unexpected decline in Crown's profitability and cash flow, likely
because of a sharp drop in demand for metal containers, cost
pressures, client attrition, and the substitution of plastic for
metal packaging. Even so, we use a 6x multiple--in line with the
multiples we use for the other leading packaging companies--to
reflect Crown's favorable business position, including its scale
advantages, geographic and product diversity, and established and
stable customer relationships."
-- S&P said, "Our recovery valuation accounts for its minority
interests in its joint ventures (JVs) by excluding their share of
EBITDA from the valuation. On this basis, we assume roughly 30% of
the value relates to the U.S. (Crown Americas and domestic
subsidiaries), 35% to foreign subsidiaries (Crown European Holdings
S.A. [CEH] and subsidiaries), and 35% to its JVs (15% for Asian and
Middle Eastern JVs, which roll up under CEH, and 20% for the Latin
American JVs that roll up under Crown Americas)."
-- The collateral package for the credit facility weakened after
upgrades from other rating agencies. The lenders have a lien on
subsidiary stock while all domestic entities are borrowers or
guarantors for the company's secured and unsecured debt (other than
for the debentures, which do not have operating subsidiary
guarantees). Therefore, the domestic borrowings under the credit
facility do not have a priority claim to the value of the U.S.
operations relative to these unsecured creditors.
-- Despite this weakness, the domestic borrowings under the credit
facility have a priority claim on 65% of the equity value in the
foreign subsidiaries (after structurally senior debt claims) and
direct borrowings by foreign subsidiaries have a structurally
senior claim to the foreign enterprise value.
-- S&P said, "We assume the revolver is 85% drawn at default, with
about 40% of borrowings by foreign subsidiaries. Inclusive of the
European term loan tranches, we assume foreign credit facility
borrowings of slightly more than $1 billion at default. A
collection allocation mechanism (CAM) would equalize the recovery
rates for all bank borrowings despite the better guarantor and
collateral terms for the non-U.S. borrowings."
-- The senior unsecured notes issued by CEH would have a
structurally senior claim to the non-U.S. value (relative to U.S.
debt), but this claim is unsecured and effectively junior to the
foreign secured borrowings (including those under the credit
facility).
-- Using these assumptions, S&P estimates the collateral covers
about 50% of the secured facility. The large proportion of
unpledged value would be sufficient to provide roughly 40% coverage
of the domestic unsecured claims, including the deficiency claim on
the secured credit facility. The secured lenders' share of the
unpledged value (from the deficiency claim) would push their total
recovery to about 70%.
-- S&P expects there would be no incremental value available to
the unsecured debentures issued by Crown Cork and Seal.
Simulated default assumptions
-- Simulated year of default: 2028
-- EBITDA at emergence: $1.032 billion
-- EBITDA multiple: 6x
Simplified waterfall
-- Net EV (after 5% administrative costs): $5.879 billion
-- Valuation split (CEH/JVs in Brazil & Columbia/Crown Americas):
50%/20%/30%
-- CEH Net EV: $2.940 million (including equity from Asia/Middle
Eastern JVs)
-- CEH priority claims (accounts receivables financing, local
debt): $309 million
-- Foreign credit facility borrowings: $1.070 billion
-- Value available to unsecured CEH creditors: $1.561 billion
-- CEH unsecured notes: $2.161 billion
--Recovery expectations-full range/rounded estimate:
50%-70%/65% (capped)
-- CEH residual value available to U.S. creditors: None
-- Net EV Brazilian and Columbian JVs: $1.176 billion
-- Priority claims (local debt): $72 million
-- Net value available to U.S. creditors: $1.104 billion ($718
million collateral/$386 million unpledged)
-- Net EV Crown Americas EV: $1.764 billion
-- Adjustment for U.S. accounts/receivable securitizations: $407
million
-- Remaining EV of Crown Americas (all unpledged): $1.357 billion
-- Estimated credit facility collateral value: $1.787 billion
-- Secured credit facility debt: $3.516 billion
-- Estimated recovery from collateral/total: 51%/72%
--Recovery expectations-full range/rounded estimate:
70%-90%/70%
-- Total value available to unsecured claims: $1.743 billion
-- Crown Americas senior unsecured notes: $1.817 billion
-- Deficiency claim on secured credit facility: $1.728 billion
-- Deficiency claim on CEH unsecured debt: $600 million
-- Total unsecured claims: $4.145 billion
--Recovery expectations: full range/rounded estimate:
30%-50%/40%
-- Remaining value for debentures: $0
-- Unguaranteed debentures: $404 million
--Recovery expectations: full range/rounded estimate:
0%-10%/0%
Notes: Debt amounts include six months of accrued interest that S&P
assumes will be owed at default. Collateral available to the credit
facility reflects a collection allocation mechanism, which combines
the value from direct foreign (nonguarantor) credit facility
borrowings, domestic borrowings/collateral, and equity pledges in
nonguarantors. S&P assumes usage of 85% for the cash flow revolver
at default.
CUENTAS INC: Registers 1.3 Million Shares for Potential Resale
--------------------------------------------------------------
Cuentas Inc. filed with the Securities and Exchange Commission a
Form S-3/A registration statement relating to the resale of up to
1,275,747 shares of common stock, par value $0.001 per share, of
Cuentas Inc., consisting of (i) up to 1,232,606 shares issuable
upon exercise of a warrant to purchase shares of common stock at an
exercise price of $3.30 per share issued by the Company to an
institutional investor as a selling shareholder on Aug. 24, 2023 as
an inducement to the exercise at a reduced exercise price of $3.30
per share of outstanding warrants to purchase a total of 616,303
shares of the Company's common stock, and (ii) up to 43,141 shares
of common stock issuable upon exercise of warrants issued to the
designees of H.C. Wainwright & Co. LLC, placement agent for the
issuance of the Inducement Warrant, named herein as selling
shareholders. The Existing Warrants included warrants to purchase
324,928 shares of common stock issued on Aug. 8, 2022 having an
initial exercise price of $7.67 per share and warrants to purchase
291,375 shares of common stock issued on Feb. 8, 2023 having an
initial exercise price of $17.16 per share.
This registration does not mean that the selling shareholders will
actually offer or sell any of these shares. The Company will not
receive any proceeds from the resale of any of the shares of common
stock being registered hereby sold by the selling shareholders.
However, the Company may receive proceeds from the exercise of the
Inducement Warrant and the August 2023 PA Warrants held by the
selling shareholders.
The Company's common stock is listed on The NASDAQ Capital Market
under the symbol "CUEN." The Company also has a class of warrants
that are listed on The NASDAQ Capital Market under the symbol
"CUENW." The last reported sale prices of the Company's common
stock and listed warrants on The NASDAQ Capital Market on Nov. 21,
2023 were $1.55 per share and $0.039 per warrant.
All share and per share information in this prospectus gives effect
to a 1-for-13 reverse stock split effected on March 24, 2023.
A full-text copy of the Registration Statement is available for
free at:
https://www.sec.gov/Archives/edgar/data/1424657/000121390023090246/ea189082-s3a1_cuentasinc.htm
About Cuentas
Headquartered in Miami, Florida, Cuentas, Inc. --
http://www.cuentas.com-- currently focuses on the business of
using proprietary fintech technology to provide e-banking
ande-commerce services for delivering mobile banking, prepaid debit
and digital content services to the unbanked, underbanked and
underserved Latino, Hispanic and immigrant communities. The
Company's proprietary software platform enables Cuentas to offer
comprehensive financial services and robust functionality that is
absent from other Mobile Apps through the use of its Prepaid Debit
Mastercard/General-Purpose Reloadable cards.
Cuentas reported a net loss attributable to the company of $14.53
million in 2022, a net loss attributable to the company of $10.73
million in 2021, a net loss attributable to the company of $8.10
million in 2020, a net loss attributable to the company of $1.32
million in 2019, and a net loss of $3.56 million in 2018. As of
March 31, 2023, the Company had $5.19 million in total assets,
$2.31 million in total liabilities, and $2.88 million in total
stockholders' equity.
Tel-Aviv, Israel-based Yarel + Partners, Certified Public
Accountants (Isr.), the Company's auditor since 2023, issued a
"going concern" qualification in its report dated March 31, 2023,
citing that the Company has incurred net losses since its
inception, and has not yet generated sufficient revenues to support
its operations. As of Dec. 31, 2022, there is an accumulated
deficit of $52,750,000. These conditions, along with other
matters, raise substantial doubt about the Company's ability to
continue as a going concern.
DIAMOND OFFSHORE: S&P Assigns 'B' ICR, Outlook Stable
-----------------------------------------------------
S&P Global Ratings assigned its 'B' issuer credit rating to
Houston-based Diamond Offshore Drilling Inc. S&P also assigned its
'BB-' issue-level rating to its proposed $500 million senior
secured second-lien notes (issued by Diamond Foreign Asset Company
and Diamond Finance, LLC). The '1' recovery indicates S&P's
expectation for very high (90%-100%; rounded estimate: 95%)
recovery of principal to creditors in the event of a payment
default.
S&P said, "The stable outlook reflects our view that Diamond's
credit measures will remain appropriate for the rating over the
next 12 months, supported by a continued pick up in offshore
activity and spending by oil and gas companies, which we expect to
enable the company to recontract its rigs at improved rates as
existing contracts roll over. We anticipate average FFO to debt of
25%-30% over the next 12-24 months.
"We assigned our 'B' issuer credit rating to Diamond. The 'B'
rating reflects the company's high-quality fleet of floating rigs,
good fleet utilization, and strong relationships with its
customers. These factors are partially offset by the company's
smaller rig count, low backlog, and exposure to the highly cyclical
and volatile offshore oil and gas sector. Our rating also reflects
our expectation of negative free operating cash flow (FOCF) and
softer credit measures in 2023."
Diamond has a relatively small rig count compared with other
offshore contract driller peers. Diamond has a fleet of 12 owned
rigs, although it anticipates selling or scrapping one of these. In
addition, the company manages two drillships for Seadrill Partners
LLC. The remaining 11 rig fleet (excluding the rig to be sold or
scrapped) comprises:
-- Four seventh generation drillships;
-- Five harsh environment semisubmersibles;
-- One dynamically positioned semisubmersible; and
-- One harsh environment dynamically positioned semisubmersible.
Diamond's fleet is small compared with industry peers such as
Valaris Ltd. and Noble Corp., which have fleets of 52 rigs and 31
rigs, respectively. However, Diamond's fleet comprises 100%
floating rigs, which we view favorably because they garner higher
day rates than other rig types such as jackups, particularly in the
current relatively tight market. Furthermore, Diamond's four
drillships are high-spec seventh generation and capable of
operating in harsh and challenging environments, which makes them
highly marketable.
Diamond's contract backlog is smaller than peers. As of June 30,
2023, the company had $1.6 billion of contracted backlog, which is
smaller than those of peers Valaris and Noble, although this is
partly due to Diamond's smaller fleet size. Current contracted
rates on much of Diamond's fleet remain below leading-edge pricing,
with an average second-quarter 2023 day rate of $299,000 on its
active rigs (including the two managed rigs). This compares with
current market day rates well in excess of $400,000 for drillships
and $300,000 for semisubmersibles. S&P expects improving sector
conditions will enable Diamond to recontract its rigs at more
favorable rates as current contracts are completed, which will
increase revenues and backlog. Diamond's drillship fleet is 100%
contracted in the remainder of 2023 and 80% in 2024, assuming
current options are exercised. The semisubmersible fleet is about
80% contracted for 2023 and 65% for 2024.
S&P said, "The offshore market recovery has been slow, but overall
utilization and day rates have improved materially. We expect
offshore spending and activity will continue to pick up at a steady
pace, supported by favorable commodity prices, tight crude oil
supply, and the renewed focus on global energy security. Sectorwide
active utilization (excluding stacked rigs) for most floating rig
classes is now over 90%, which has resulted in significantly higher
day rates and customers tendering further in advance than in recent
years. We expect floater rig supply, particularly for the drillship
class, to remain tight in the near term given that there is very
limited additional supply available to bring to market, which we
believe will support stronger near-term day rates. However, longer
term, we believe the energy transition will challenge the offshore
sector because customers may be more reluctant to commit capital to
multiyear greenfield projects given the risk of subsiding demand
for oil."
The company has moderate geographic diversity and a strong customer
base. Diamond is currently active in the Gulf of Mexico, West
Africa, Australia, South America, and the United Kingdom. Its
customers include supermajors BP and Shell and Brazil's national
oil company Petrobras.
S&P said, "We expect negative FOCF in 2023 due to higher capital
spending and lower day rates. Diamond has guided to capital
expenditure (capex) of about $135 million in 2023. Capex is
elevated because it includes the partial reactivation costs of the
Great White semisubmersible and five-year survey spending on two of
the company's drillships. This, coupled with its lower legacy day
rates, is resulting in negative FOCF in 2023. However, with a step
down in capex and an anticipated increase in average day rates in
2024, we expect the company will generate positive FOCF and
improved credit measures, with funds from operations (FFO) to debt
of about 35% in 2024."
Diamond filed for Chapter 11 bankruptcy protection in April 2020
and emerged from the process in April 2021. The company eliminated
$2.2 billion of debt through the process.
S&P said, "The stable outlook reflects our view that Diamond will
recontract its rigs at more favorable market rates as existing
contracts roll off, supported by increased offshore activity and
spending, enabling it to improve operating margins and maintain
credit measures appropriate for the rating. We anticipate average
FFO to debt of 25%-30% over the next 12-24 months.
"We could lower our rating on Diamond if credit measures
deteriorate such that FFO to debt remains below 20% on a sustained
basis. This would most likely occur if demand for offshore drilling
services softens and as a result, Diamond cannot recontract its
rigs at favorable day rates.
"We could raise our rating on Diamond if we expect its credit
measures to strengthen such that FFO to debt exceeds 45% on a
sustained basis. In addition, we would expect the company to
generate positive FOCF on a sustained basis. This would most likely
occur if commodity prices continue to support increased offshore
activity and demand for offshore drilling services, enabling
Diamond to recontract at much higher day rates than we currently
anticipate."
DIAMOND SCAFFOLD: Court OKs Cash Collateral Use Thru Feb 2024
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Alabama
authorized Diamond Scaffold Services, LLC to use cash collateral on
an interim basis in accordance with the budget, with a 10%
variance, through February 26, 2024.
The Debtor requires the use of cash collateral to pay operating
expenses.
Prior to June 2021, the Debtor owned scaffolding and leased it to
its customers. It now leases scaffolding from Sertant Capital, SMA
II LP I, LLC, Mazuma Capital, and First Guaranty Bank and subleases
that scaffolding to its customers. Sertant, SMA, Mazuma, and First
Guaranty Bank claim security interests in the scaffolding and in
the proceeds thereof.
Honest Funding, LLC; Cheetah Capital; Dynasty Capital 26, LLC;
Reserve Capital Management; Byrd Capital, LLC; Granite State
Services, LLC; Strategic Investments, LLC; LCF Group, Inc.; and
Imperial Funding -- which the Debtor calls "Cash Advance
Facilitators" -- may also claim to own or to have a security
interest in certain of Debtor's receivables.
Byrd Capital, LLC, Granite State Services, LLC, and Strategic
Investments, LLC are members of 3 Cajuns, LLC and consolidated
their claims against the Debtor into one promissory note in the
principal amount of $875,000 prior to the petition date.
The U.S. Internal Revenue Service, Alabama Department of Revenue,
and the State of Texas recorded tax liens against the Debtor prior
to the Petition Date, which may attach to the Debtor's pre-petition
accounts receivables.
The IRS, the Alabama Department of Revenue, the Louisiana
Department of Revenue, the State of Texas, and the Funders are the
"Cash Collateral Claimants."
To provide adequate protection to those of the Equipment Lessors
and Cash Collateral Claimants that have ownership claims to or
valid liens on the Debtor's cash collateral, the Equipment Lessors
and Cash Collateral Claimants are granted, effective as of the date
of the Interim Order, a post-petition security interest and
replacement lien on the Debtor's postpetition receivables to the
same extent, priority, and perfection status as they have valid
prepetition liens.
These Cash Collateral Claimants will receive adequate protection
payments until the order expires or is modified by further order of
the Court:
Creditor Monthly Payment
a. Internal Revenue Service $2,472.00
b. Alabama Dept. of Revenue $300.00
c. Louisiana Dept. of Revenue $1,100.00
d. State of Texas $560.00
e. 3Cajuns $848.00
A copy of the order is available at https://urlcurt.com/u?l=KEBEo5
from PacerMonitor.com.
About Diamond Scaffold Services
Diamond Scaffold Services LLC -- https://www.diamondscaffold.com/
-- is an authorized distributor of Ring-lock, Cup-lock, Shoring,
and Frame Scaffold. Diamond Scaffold Services, LLC, sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
S.D. Ala. Case No. 22-11208) on June 21, 2022. In the petition
filed by Jewell Wayne Sumrall, as president, the Debtor estimated
assets between $1 million and $10 million and liabilities between
$10 million and $50 million.
Judge Jerry Oldshue oversees the case.
Alexandra K. Garrett, Esq., at Silver, Voit & Garrett, is the
Debtor's counsel. Jason R. Watkins is serving as special counsel,
representing the Debtor in various litigation.
DIAMOND SPORTS: Seeks to Extend Plan Exclusivity to March 28, 2024
------------------------------------------------------------------
Diamond Sports Group, LLC and its affiliates asked the U.S.
Bankruptcy Court for the Southern District of Texas to extend the
exclusive periods for the filing of a Chapter 11 plan and
solicitation of acceptances thereof to March 28, 2024 and May 28,
2024, respectively.
The Debtors claim that they have achieved a critical milestone in
their chapter 11 cases -- the First Lien Group, certain members
of the Second Lien Group, and the UCC entered into a Cooperation
Agreement with the Debtors that memorializes those parties'
support for a baseline business plan as well as a settlement of
key intercreditor issues that will form the basis for a
confirmable chapter 11 plan. The Debtors also stated that the
agreement and underlying business plan also enjoys the support of
the NBA, whose team and league modified rights agreements
position the Debtors to operate profitably through the 2023–24
Seasons.
The Debtors explained, however, that work remains to be done to
capitalize on this progress and to implement the agreed
transactions and settlements. The Debtors highlighted two key
tasks:
1) Effectiveness of the Cooperation Agreement is conditioned
on, among other things, a favorable resolution of
Sinclair's and MLB's respective motions to compel the
Debtors to assume or reject their contracts. The
agreement is also conditioned on finalizing the terms of
an agreement with the NHL, which the Debtors remain
optimistic will occur soon.
2) The Debtors must still document and confirm their chapter
11 plan. Unless the parties agree otherwise, the
Cooperation Agreement requires the Debtors to file a
chapter 11 plan within 10 business days of the
Cooperation Agreement becoming effective.
In requesting the exclusivity extension, the Debtors asserted
that their focus should not be on batting back or litigating over
a competing plan but rather on garnering further support for
their path forward, executing on their baseline business plan,
and implementing the Cooperation Agreement through a chapter 11
plan.
The Court has previously extended the Debtors' filing exclusivity
period and solicitation exclusivity period two times, currently
through November 29, 2023, and January 29, 2023, respectively.
Diamond Sports Group, LLC and its affiliates are
represented by:
John F. Higgins, Esq.
M. Shane Johnson, Esq.
Megan Young-John, Esq.
Bryan L. Rochelle, Esq.
PORTER HEDGES LLP
1000 Main St., 36th Floor
Houston, TX 77002
Tel: (713) 226-6000
Email: jhiggins@porterhedges.com
sjohnson@porterhedges.com
myoung-john@porterhedges.com
brochelle@porterhedges.com
- and -
Andrew Goldman, Esq.
Benjamin Loveland, Esq.
WILMER CUTLER PICKERING HALE AND DORR LLP
250 Greenwich Street
New York, NY 10007
Tel: (212) 230-8800
Email: andrew.goldman@wilmerhale.com
benjamin.loveland@wilmerhale.com
- and -
Brian S. Hermann, Esq.
Andrew M. Parlen, Esq.
Joseph M. Graham, Esq.
Alice Nofzinger, Esq.
PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP
1285 Avenue of the Americas
New York, NY 10019
Tel: (212) 373-3000
Email: bhermann@paulweiss.com
aparlen@paulweiss.com
jgraham@paulweiss.com
anofzinger@paulweiss.com
About Diamond Sports Group
Diamond Sports Group, LLC and its affiliates own and/or operate
the Bally Sports Regional Sports Networks, making them the
nation's leading provider of local sports programming. DSG's 19
Bally Sports RSNs serve as the home for 42 MLB, NHL, and NBA
teams. DSG also holds joint venture interests in Marquee, the
home of the Chicago Cubs, and the YES Network, the local
destination for the New York Yankees and Brooklyn Nets. The RSNs
produce about 4,500 live local professional telecasts each year
in addition to a wide variety of locally produced sports events
and programs. DSG is an unconsolidated and independently run
subsidiary of Sinclair Broadcast Group.
Diamond Sports Group and 29 of its affiliates sought relief under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Texas Lead
Case No. 23-90116) on March 14, 2023. In the petition filed by
David F. DeVoe, Jr., as chief financial officer and chief
operating officer, Diamond Sports Group listed $1 billion to $10
billion in both assets and liabilities.
Judge Christopher M. Lopez oversees the cases.
The Debtors tapped Paul, Weiss, Rifkind, Wharton & Garrison, LLP
and Porter Hedges, LLP as bankruptcy counsel; Wilmer Cutler
Pickering Hale, Dorr, LLP and Quinn Emanuel Urquhart & Sullivan,
LLP as special counsel; AlixPartners, LLP as financial advisor;
Moelis & Company, LLC and LionTree Advisors, LLC as investment
bankers; Deloitte Tax, LLP as tax advisor; Deloitte Financial
Advisory Services, LLP as accountant; and Deloitte Consulting,
LLP as consultant. Kroll Restructuring Administration, LLC is
the claims agent.
The U.S. Trustee for Region 7 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
The committee tapped Akin Gump Strauss Hauer& Feld LLP as c
ounsel; FTI Consulting, Inc., as financial advisor; and Houlihan
Lokey Capital, Inc. as investment banker.
DIOCESE OF SAN FRANCISCO: Comm Taps Burns Bair as Insurance Counsel
-------------------------------------------------------------------
The official committee of unsecured creditors appointed in the
Chapter 11 case of the Roman Catholic Archbishop of San Francisco
seeks approval from the U.S. Bankruptcy Court for the Northern
District of California to employ Burns Bair LLP as its special
insurance counsel.
The firm's services include:
(a) analyzing, investigating, and assessing the availability
of coverage under the Debtor's insurances policies;
(b) representing the Committee in any adversary proceedings by
and between the Debtor and its insurers, pending Court approval;
(c) engaging in potential mediation and/or other resolution of
the claims, demands, and/or lawsuits related to the Debtor's
insurance policies;
(d) advising, negotiating, and advocating on behalf of the
Committee with respect to the Debtor's insurance policies; and
(e) providing related advice and assistance to the Committee
as necessary.
The hourly rates of the firm's professionals are as follows:
Partners $900 - $1,120
Associates $550
Paraprofessionals $340
In addition, the firm will seek reimbursement for expenses
incurred.
Timothy Burns, Esq., a partner at Burns Bair, 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:
Timothy W. Burns, Esq.
Burns Bair, LLP
10 E. Doty Street, Suite 600
Madison, WI 53703
Telephone: (608) 286-2302
Email: tburns@burnsbair.com
About The Roman Catholic Archbishop
of San Francisco
The Roman Catholic Archbishop of San Francisco filed Chapter 11
petition (Bankr. N.D. Cal. Case No. 23-30564) on Aug. 21, 2023,
with $100 million to $500 million in both assets and liabilities.
Judge Dennis Montali oversees the case.
The Debtor tapped Felderstein Fitzgerald Willoughby Pascuzzi &
Rios, LLP and Sheppard, Mullin, Richter & Hampton LLP as counsel.
Weintraub Tobin Chediak Coleman & Grodin as special litigation
counsel. Weinstein & Numbers, LLP as special insurance counsel.
GlassRatner Advisory & Capital Group LLC d/b/a B. Riley Advisory
Services as financial advisor. Omni Agent Solutions, Inc. as
administrative agent.
On September 1, 2023, the United States Trustee appointed an
official committee of unsecured creditors in this Chapter 11 case.
The committee tapped Pachulski Stang Ziehl & Jones LLP as its
counsel.
DIVERSIFIED PANELS: Cannabis Panels Provider Hits Chapter 11
------------------------------------------------------------
Diversified Panels Systems Inc., d/b/a Diversified Panel, filed for
chapter 11 protection in the District of Central California.
The Debtor, S-corporation, operates a 30,000 square foot
manufacturing facility in Oxnard, California where it manufactures
EPS insulated metal panels focusing specifically on cold storage
and agricultural facilities. The Debtor's facility has a
production capacity of over 50,000 square feet of panels per day.
The Debtor's panels, refrigerators, and freezers for cold storage
are utilized in the agricultural and food retail industries, and
more recently, in the cannabis growing industry.
The Debtor manufactures panels for processing rooms and growing
facilities for flowers and strawberries and has manufactured
refrigerators and freezers for Costco, Trader Joe's, Golden State
Foods, and Gelsons. Seventy-five percent of Debtor's historical
gross sales is from cold storage work and 25 percent of the
Debtor's historical gross sales is from panels built for use in
cannabis growing facilities.
The Debtor's recent gross revenues have been the following:
2021: $20,537,993
2022: $30,260,688
2023: $22,767,436 (YTD as Nov. 7, 2023)
Road to Chapter 11
When cannabis was legalized in California, the Debtor began to
manufacture panels for use in the medical marijuana industry. When
recreational cannabis was legalized the cannabis industry was
booming.
In July 2016, Debtor's vice president of sales, Pat McGuire, met
Brian Mitchell of Green Gadgets and they started discussing
starting a company that Debtor would supply with panels, the panels
would then be distributed by the company to the cannabis industry.
In 2017, Brian Mitchell introduced Pat McGuire and Richard Bell to
Rain Steinberg and John Falcone. Rain Steinberg and John Falcone
started Plan B Management, LLC, now known as Plan B Management,
Inc. ("Plan B").
Richard Bell began to negotiate with Brian Mitchell, Rain Steinberg
and John Falcone about the agreement that Debtor would enter into
with Plan B. An oral agreement was entered into, but the terms
were not finalized to a writing.
Negotiations fell apart early on when drafts of term sheets started
being exchanged and the parties could not reach an agreement as to
the terms of the deal. A written agreement was never finalized.
Plan B Management filed a lawsuit against the Debtor.
The cannabis industry slowed down and Debtor's principal has been
trying to sell the business since 2017.
The 5-year litigation by Plan B has cost the Debtor millions of
dollars in attorney's fees. This caused the Debtor to fall behind
with vendors. Vendors have been lenient with Debtor because of the
long-standing business relationship. The lawsuit by Plan B has
seriously hindered Debtor's principal' s ability to sell the
business. Plan B has threatened to file action against any buyer of
the business.
Plan B obtained a $12,000,000 judgment against the Debtor based on
improper jury instructions. The Debtor disputes the judgment and
has filed a motion for a new trial. Plan B filed a judgment lien
during the 90 days which will be avoided.
DPS will continue to operate the business and maintain and service
assets in Chapter 11 bankruptcy. In the first 90 days of the case,
the Debtor believes it will generate net cash flow of $588,640 on
gross revenues of $6,289,703 and expenses of $5,701,063.
The Debtor reported between $10 million and $50 million in debt as
of the bankruptcy filing. The petition states funds will be
available to Unsecured Creditors.
About Diversified Panels Systems
Diversified Panels Systems Inc. -- https://dpspanels.com/ --
manufacturers expanded polystyrene (EPS)insulated metal panels,
focusing specifically on cold storage and agricultural facilities.
The Debtor sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. C.D. Cal. Case No. 23-11112) on Nov. 22, 2023. In the
petition signed by Richard Charles Bell as CEO, CFO & secretary,
the Debtor disclosed $12,533,166 in assets and $26,114,847 in
liabilities.
Judge Ronald A. Clifford III oversees the case.
The Debtor is represented by:
William E. Winfield, Esq.
Nelson Comis Kettle & Kinney LLP
2345 Statham Blvd., Units 1 and 2
Oxnard, CA 93033
DMK PHARMACEUTICALS: Regains Full Rights for SYMJEPI From USWM
--------------------------------------------------------------
DMK Pharmaceuticals Corporation announced that it is reacquiring
the rights to its SYMJEPI (epinephrine) Injection 0.3mg and SYMJEPI
(epinephrine) Injection 0.15mg products from USWM, LLC (US
WorldMeds). US WorldMeds previously held exclusive distribution
and commercialization rights for SYMJEPI and ZIMHI (naloxone)
products in the United States, and was responsible for marketing,
promotion and distribution efforts.
The Company is now actively seeking out-license opportunities for
SYMJEPI in the US and globally, in addition to exploring other
options with a focus on maximizing value for shareholders.
"Given our renewed focus on our core business, we are taking
decisive actions that we believe will remove obstacles and improve
our ability to drive long-term growth," said Eboo Versi, M.D.,
Ph.D., CEO of DMK Pharmaceuticals. "This represents an important
step in DMK's ongoing transformation journey as we continue to
execute against our operating plan and review our existing business
relationships to ensure maximal benefit to DMK's stakeholders and
patients."
About DMK Pharmaceuticals
DMK Pharmaceuticals (formerly known as Adamis Pharmaceuticals
Corporation) is a commercial stage neuro-biotech company primarily
focused on developing and commercializing products for the
treatment of opioid overdose and substance use disorders. DMK's
commercial products approved by the FDA include ZIMHI (naloxone)
Injection for the treatment of opioid overdose, and SYMJEPI
(epinephrine) Injection for use in the emergency treatment of acute
allergic reactions, including anaphylaxis. The Company is focused
on developing novel therapies for opioid use disorder (OUD) and
other important neuro-based conditions where patients are currently
underserved. DMK believes its technologies are at the forefront of
endorphin-inspired drug design with its mono, bi- and
tri-functional small molecules that simultaneously modulate
critical networks in the nervous system. DMK has a library of
approximately 750 small molecule europeptide analogues and a
differentiated pipeline that could address unmet medical needs by
taking the novel approach to integrate with the body's own efforts
to regain balance of disrupted physiology. The Company's lead
clinical stage product candidate, DPI-125, is being studied as a
potential novel treatment for OUD. DMK also plans to develop the
compound for the treatment of moderate to severe pain. The
Company's other development stage product candidates include
DPI-221 for bladder control problems and DPI-289 for severe end
stage Parkinson's disease.
San Diego, California-based BDO USA, LLP, the Company's auditor
since 2020, issued a "going concern" qualification in its report
dated March 16, 2023, citing that the Company has suffered
recurring losses from operations and has a net capital deficiency
that raise substantial doubt about its ability to continue as a
going concern.
DW TRUMP: Unsecured Claims Are Unimpaired in Plan
-------------------------------------------------
DW Trump, Inc., submitted a Disclosure Statement under Chapter 11
for Plan of Reorganization.
A hearing on the Disclosure Statement will be held on Dec. 21, 2023
at 10:00 AM at Courtroom TBA, White Plains Courthouse. Objections
are due by Dec. 14, 2023.
The Plan will be funded by funds received through a cash
contribution in the amount of $70,000 paid by Ephriam Weissmandl,
the Treasurer of the Debtor. It is anticipated that said amount
will be sufficient to satisfy all Administrative Claims, Priority
Claims and Unsecured Claims.
Under the Plan Class 1 General Unsecured Claims will be paid in
full. To the best of the Debtor's knowledge, and based upon the
treatment of claims as contained in the within Disclosure
statement, General Unsecured Claims are represented as $18,399,
full payment provided for in the Plan. Class 1 is unimpaired in
Plan.
Attorney for Debtor:
Barry D. Haberman, Esq.
THE LAW OFFICE OF BARRY D. HABERMAN
254 South Main St., #404
New City, NY 10956
Tel: (845) 638-4294
A copy of the Disclosure Statement dated November 22, 2023, is
available at https://tinyurl.ph/PlgCd from PacerMonitor.com.
About DW Trump
DW Trump, Inc., a New York corporation, owns real property located
at a residential real estate, a single family home, located at 26
Parker Boulevard, Monsey, New York 10952. The Debtor is entitled to
collect rental income from Ephriam and Dina Weissmandl.
DW Trump sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. S.D.N.Y. Case No. 22-22628) on Aug. 18, 2022, with $1
million to $10 million in both assets and liabilities. Ephriam
Weismandl, DW Trump treasurer, signed the petition.
Judge Sean H. Lane oversees the case.
The Debtor is represented by Barry D. Haberman, Esq., at The Law
Office of Barry D. Haberman.
EAGLE BEAR: Plan to Provide Full Payment for All Claims
-------------------------------------------------------
Eagle Bear Inc. submitted a Chapter 11 Plan of Reorganization and a
Disclosure Statement.
The proposed Plan of Reorganization is based upon the Debtor's
desire to pay its creditors in full. If the Debtor is liquidated
pursuant to the provisions of Chapter 7 of the Bankruptcy Code, it
appears from the analysis of distributions in such liquidation of
the Debtor the "Liquidation Analysis," that the holders of allowed
secured claims on all personal property will be paid in full but
the priority claims will not be paid, and the holders of general
unsecured claims will not be paid. This calculation is based upon
current market value of the Debtor's property reflecting the
opinions of the Debtor. The Debtor believes that its Plan, which
will provide for full payment of all claims, will provide the best
and highest amounts to its creditors.
In general, the Debtor will pay the administrative claims in full.
The Debtor's proposed Plan will not impair the claims of one of 2
of the 9 classes of creditors: (i) Class VI secured claim of the
U.S. Small Business Administration and (ii) the Class VIII priority
unsecured claim of the Internal Revenue Service. The unimpaired
creditors will be paid on or before the Effective Date of the
Plan.
The total gross value of the Debtors' personal property is
estimated to be $2,882,080.
The total of the Debtor's liabilities is $2,642,033.
Since 2020, the Debtor has reported ordinary business income on its
federal 1120-S returns, of $474,682 in 2021; this amount is net of,
among other things, $92,023 in interest and $299,757 in
depreciation thus indicating funds available to service debt of
$866,462. In 2022, the comparable figures are ordinary income of
$451,045, interest of $110,247 and depreciation of $182,942,
indicating total funds available to service debt of $744,234. The
2023 financial records maintained by the Debtor show the net
ordinary income before interest and depreciation is $975,259.
The Class VII allowed priority unsecured claim of the Blackfeet
Indian Nation will be paid with interest at the Federal Judgment
Rate on the Confirmation Date, through (i) a partial lump sum
payment of $440,910.81 on the Effective Date, and (ii) followed by
level monthly payments commencing 30 days following the Effective
Date and continuing through May 22, 2027.
The Class VIII allowed priority unsecured claim of the Internal
Revenue Service will be paid through a single lump sum payment on
the Effective Date.
The Class IX general allowed unsecured claims will be paid through
level monthly payments, with interest at the Federal Judgment Rate,
for 24 months commencing 30 days after the Effective Date. The
allowed claims in this Class total $19,315.2 and will receive
monthly payment of $850.90.
The classes of creditors, including all class members and the
amount of each creditor's Allowed Claim and the monthly payment is
set out on the Creditors Table at Appendix No. 3 with the following
link: https://tinyurl.ph/oGWac.
The feasibility of the Debtor's Plan is based upon its continued
operation of the campground and the generation of proceeds with
which to pay all claims. A forecast of the cashflows are set out in
Appendix No. 4 with the following link: https://tinyurl.ph/BDUFF.
The Debtor's proposed plan provides for recurring monthly payments
to all classes of creditors, in addition to the initial partial
lump sum payment to the Blackfeet Nation, of $649,433 annually. The
available funds identified in Sec. E, infra at page 11, shows
available funds averaging $862,000 per year for the past three
years.
Attorneys for Debtor:
James A. Patten, Esq.
Molly S. Considine, Esq.
PATTEN, PETERMAN, BEKKEDAHL & GREEN, P.L.L.C.
2817 2nd Avenue North, Ste. 300
P.O. Box 1239
Billings, MT 59103
Tel: (406) 252-8500
Fax: (406) 294-9500
E-mail: apatten@ppbglaw.com
mconsidine@ppbglaw.com
A copy of the Disclosure Statement dated November 22, 2023, is
available at https://tinyurl.ph/YVRdy from PacerMonitor.com.
About Eagle Bear
Eagle Bear, Inc., operates RV (Recreational Vehicle) Parks and
recreational camping ground resort.
Eagle Bear filed a voluntary petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. D. Mont. Case No. 22-40035) on May
23, 2022, with up to $10 million in both assets and liabilities.
Susan Brooke, president of Eagle Bear, signed the petition.
Judge Benjamin P. Hursh oversees the case.
The Debtor tapped Patten, Peterman, Bekkedahl and Green, PLLC, as
legal counsel and Holmes & Turner as accountant.
EASTGATE WHITEHOUSE: Hires Cullen and Dykman as Bankruptcy Counsel
------------------------------------------------------------------
Eastgate Whitehouse, LLC seeks approval from the U.S. Bankruptcy
Court for the Southern District of New York to employ Cullen and
Dykman LLP as its as general bankruptcy counsel.
The firm's services include:
a. advising the Debtor with respect to its powers and duties
in the continued operation of its business and management of its
property as a debtor and debtor-in-possession;
b. representing the Debtor before this Court, and any other
court of competent jurisdiction, on matters pertaining to its
affairs as a debtor and debtor-in-possession, including prosecuting
and defending litigated matters that may arise during this chapter
11 case;
c. preparing all necessary or appropriate applications,
motions, complaints, answers, reports and other legal documents;
d. performing all other legal services for the Debtor that may
be desirable and necessary in this chapter 11 case; and
e. taking all necessary actions to protect and preserve the
value of the estate of the Debtor and other related matters.
The firm will be paid at these rates:
C. Nathan Dee $745 per hour
Elizabeth Aboulafia $695 per hour
Associates $280 - $475 per hour
The firm will also receive reimbursement for out-of-pocket
expenses.
The retainer fee is $25,000.
C. Nathan Dee, Esq., a member at Cullen and Dykman, disclosed in a
court filing that his firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Matthew G. Roseman, Esq.
Cullen and Dykman, LLP
100 Quentin Roosevelt Blvd
Garden City, NY 11530
Tel: (516) 357-3700
Email: mroseman@cullenllp.com
About Eastgate Whitehouse
Eastgate Whitehouse, LLC, a company in Rye, N.Y., sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case
No. 22-22635) on Aug. 19, 2022. In the petition filed by its
managing member, William W. Koeppel, the Debtor reported between
$10 million and $50 million in both assets and liabilities.
Judge Sean H. Lane oversees the case.
The Debtor tapped Joel Shafferman, Esq., at Shafferman & Feldman,
LLP as bankruptcy counsel; the Law Office of Christopher J.
Alvarado, P.C. as special counsel; and Krell & Associates, CPA, PC
as accountant.
EMERGENT BIOSOLUTIONS: Receives $75M Contract Option From BARDA
---------------------------------------------------------------
Emergent BioSolutions Inc. announced that the Biomedical Advanced
Research and Development Authority (BARDA) within the
Administration for Strategic Preparedness and Response at the
United States Department of Health and Human Services has awarded a
$75 million option to Emergent's existing contract
(HHSO100201600030C) for the acquisition of newly licensed anthrax
vaccine CYFENDUS (Anthrax Vaccine Adsorbed, Adjuvanted).
Deliveries are expected to begin this calendar year and be complete
by the end of the first quarter of 2024.
Previously known as AV7909, CYFENDUS vaccine was approved by the
U.S. Food & Drug Administration (FDA) in July 2023 as a two-dose
anthrax vaccine for post-exposure prophylaxis use in individuals 18
years of age and older. Anthrax is considered a high-priority
national security threat and has the potential for major public
health impact.
"CYFENDUS vaccine is a critical component of Emergent's anthrax
medical countermeasures franchise, and supports the U.S.
government's anthrax preparedness strategy," said Paul Williams,
senior vice president, products head at Emergent. "This
procurement helps ensure the nation has sufficient anthrax vaccine
and aligns with Emergent's longstanding commitment to strengthen
public health preparedness."
In 2016, BARDA and Emergent extended their partnership to support
clinical development and manufacturing efforts for the AV7909
vaccine, including a Phase 3 trial to demonstrate safety and
efficacy, working toward the goal of eventual FDA licensure. A
pre-Emergency Use Authorization (EUA) package was submitted in
December 2018, and the first pre-EUA doses of AV7909 were delivered
to the U.S. government in 2019. In April 2022, Emergent submitted
the Biologics License Application to the FDA for review, leading to
approval and licensure in July 2023. This latest contract option
supplements previous contract procurements and supports the U.S.
biodefense preparedness efforts.
This project has been supported in whole or in part with federal
funds from the Department of Health and Human Services;
Administration for Strategic Preparedness and Response; Biomedical
Advanced Research and Development Authority under contract
HHSO100201600030C.
About Emergent Biosolutions
Headquartered in Gaithersburg, MD, Emergent Biosolutions Inc. is a
global life sciences company focused on providing innovative
preparedness and response solutions addressing accidental,
deliberate and naturally occurring public health threat. The
Company's solutions include a product portfolio, a product
development portfolio, and a contract development and manufacturing
("CDMO") services portfolio.
Tysons, Virginia-based Ernst & Young LLP, the Company's auditor
since 2004, issued a "going concern" qualification in its report
dated March 1, 2023, citing that the Company does not expect to be
in compliance with debt covenants in future periods without
additional sources of liquidity or future amendments to its Credit
Agreement, has a working capital deficiency, and has stated that
substantial doubt exists about the Company's ability to continue as
a going concern.
ENVIVA INC: Incurs $85.2 Million Net Loss in Third Quarter
----------------------------------------------------------
Enviva Inc. filed with the Securities and Exchange Commission its
Quarterly Report on Form 10-Q reporting a net loss of $85.16
million on $320.64 million of net revenue for the three months
ended Sept. 30, 2023, compared to a net loss of $18.30 million on
$325.66 million of net revenue for the three months ended Sept. 30,
2022.
For the nine months ended Sept. 30, 2023, the Company reported a
net loss of $257.80 million on $891.62 million of net revenue,
compared to a net loss of $90.95 million on $854.96 million of net
revenue for the same period during the prior year.
As of Sept. 30, 2023, the Company had $2.89 billion in total
assets, $2.63 billion in total liabilities, and $262.32 million in
total shareholders' equity.
Enviva said, "The Company has incurred net losses of $257.8 million
and $168.4 million for the nine months ended September 30, 2023 and
the year ended December 31, 2022, respectively, and negative cash
flow from operating activities of $25.6 million and $88.8 million,
respectively for the same periods. As of September 30, 2023, the
Company had $315.2 million in cash and cash equivalents, $125.5
million of restricted cash, and no availability under our revolving
credit facility, resulting in total liquidity of $440.7 million.
Our future profitability and liquidity are expected to be
negatively impacted by the following matters which have resulted in
substantial doubt about the Company's ability to continue as a
going concern."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1592057/000159205723000054/eva-20230930.htm
About Enviva
Enviva Inc. (NYSE: EVA) is a producer of industrial wood pellets, a
renewable and sustainable energy source produced by aggregating a
natural resource, wood fiber, and processing it into a
transportable form, wood pellets. Enviva owns and operates ten
plants with a combined production capacity of approximately 6.2
million metric tons per year in Virginia, North Carolina, South
Carolina, Georgia, Florida, and Mississippi, and is constructing
its 11th plant in Epes, Alabama. Enviva is planning to commence
construction of its 12th plant, near Bond, Mississippi, in 2023.
Enviva sells most of its wood pellets through long-term,
take-or-pay off-take contracts with primarily creditworthy
customers in the United Kingdom, the European Union, and Japan,
helping to accelerate the energy transition and to defossilize
hard-to-abate sectors like steel, cement, lime, chemicals, and
aviation. Enviva exports its wood pellets to global markets
through its deep-water marine terminals at the Port of Chesapeake,
Virginia, the Port of Wilmington, North Carolina, and the Port of
Pascagoula, Mississippi, and from third-party deep-water marine
terminals in Savannah, Georgia, Mobile, Alabama, and Panama City,
Florida.
Enviva reported a net loss of $168.37 million in 2022, a net loss
of $145.27 million in 2021, and a net loss of $106.32 million in
2020.
EQUALTOX LLC: Hires Smiley Wang-Ekvall as Bankruptcy Counsel
------------------------------------------------------------
Equaltox, LLC seeks approval from the U.S. Bankruptcy Court for the
Central District of California to employ Smiley Wang-Ekvall, LLP,
as its general bankruptcy counsel.
The Debtors require Smiley Wang-Ekvall to:
(a) advise the Debtors with respect to the requirements and
provisions of the Bankruptcy Code, Federal Rules of Bankruptcy
Procedure, Local Bankruptcy Rules, U.S. Trustee Guidelines and
other applicable requirements which may affect the Debtors;
(b) assist the Debtors in preparing and filing schedules and
statements of financial affairs, complying with and fulfilling U.S.
Trustee requirements, and preparing other documents as may be
required after the initial filing of a chapter 11 case;
(c) assist the Debtors in the preparation of a disclosure
statement and formulation of a chapter 11 plan of reorganization;
(d) advise the Debtors concerning the rights and remedies of
the estate and of the Debtors in regard to adversary proceedings
which may be removed to, or initiated in, the Bankruptcy Court;
and
(e) represent the Debtors in any proceeding or hearing in the
Bankruptcy Court in any action where the rights of the estate or
the Debtors may be litigated or affected.
The majority of the work will be performed by Robert S. Marticello,
Michael L. Simon, and Timothy W. Evanston, whose hourly rates are
$650, $430, and $390, respectively.
The Firm received a total pre-petition retainer in the amount of
$135,000, exclusive of the filing fee.
Smiley Wang-Ekvall does not represent any entity that has an
adverse interest in connection with the Debtor or its bankruptcy
case, according to court filings.
The firm can be reached through:
Robert S. Marticello, Esq.
Smiley Wang-Ekvall, LLP
3200 Park Center Drive, Suite 250
Costa Mesa, CA 92626
Tel: (714) 445-1000
Fax: (714) 445-1002
About Equaltox, LLC
Equaltox, LLC is a full service reference laboratory that can
provide almost any type of blood testing.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 8:23-bk-12243) on
October 27, 2023. In the petition signed by Sulaiman Masood, member
and manager, the Debtor disclosed up to $10 million in both assets
and liabilities.
Robert S. Marticello, Esq., at Smiley Wang-Ekvall, LLP, represents
the Debtor as legal counsel.
EQUALTOX LLC: Lender Seeks to Prohibit Cash Collateral Access
-------------------------------------------------------------
Sunwest Bank asks the U.S. Bankruptcy Court for the Central
District of California, Santa Ana Division, to prohibit Equaltox,
LLC from using cash collateral.
Sunwest Bank holds a first-priority lien on the rent generated from
the Debtor's real property, constituting the Bank's cash
collateral. The Debtor seeks authorization to utilize this rent for
its operating expenses during bankruptcy, which diminishes the
collateral's value. While the Debtor offers a replacement lien on
future rent to protect the Bank's interest, this offer is illusory
since the Bank already possesses a prior lien on future rem.
Further, the Debtor's use of rent to pay laboratory operation
expenses does not primarily or directly benefit or protect the
Bank's interest in the Debtor's real property or rental income.
The Lender asserts the Court should deny the Debtor's Motion
regarding using the Bank's cash collateral. Alternatively, in
addition to protection proposed by the Debtor, the Court should
mandate that the Debtor make its agreed-upon monthly payments
of$9,942 under its loan with the Bank to adequately protect the
Bank against the loss of its collateral.
The Debtor owns its office located at 550 N. Golden Circle Dr.,
Santa Ana, California 10 92705. It acquired the Property in March
2023 with two loans from the 11 Bank, one loan for $1.562 million
and a second loan for $1.3 million.
The First Loan is evidenced by a promissory note dated March 14,
2023, in the original principal amount of $1.562 million from the
Debtor to the Bank. The First Loan was secured by a Deed of Trust
and an Assignment of Leases and Rents, each dated March 14, 2023,
and recorded March 24, 2023, encumbering the Property. Under the
Deed of Trust and the Assignment, the Debtor assigned and granted
the Bank a continuing security interest in all rent, revenue,
income, accounts receivable, cash, profits, and proceeds from the
Property.
A copy of the motion is available at https://urlcurt.com/u?l=dxTxl6
from PacerMonitor.com.
About Equaltox, LLC
Equaltox, LLC is a full service reference laboratory that can
provide almost any type of blood testing.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 8:23-bk-12243) on
October 27, 2023. In the petition signed by Sulaiman Masood, member
and manager, the Debtor disclosed up to $10 million in both assets
and liabilities.
Judge Scott C. Clarkson oversees the case.
Robert S. Marticello, Esq., at Smiley Wang-Ekvall, LLP, represents
the Debtor as legal counsel.
FTAI AVIATION: Moody's Assigns 'Ba2' CFR, Outlook Negative
----------------------------------------------------------
Moody's Investors Service has assigned a Ba2 corporate family
rating to FTAI Aviation Ltd., the parent company of Fortress
Transportation and Infrastructure Investors LLC. FTAI Aviation's
outlook is negative. Moody's has also withdrawn the Ba2 CFR
previously assigned to Fortress Transportation and Infrastructure
Investors LLC. These actions reflect the restructuring in November
2022 that occurred post the closing of the spin-off of the
infrastructure assets. In the restructuring, Fortress
Transportation and Infrastructure Investors LLC became a subsidiary
of FTAI Aviation, and FTAI Aviation became a guaranteeing parent.
The Ba2 ratings on the existing senior unsecured notes and
preferred stock issued by Fortress Transportation and
Infrastructure Investors LLC, including the new $500 million backed
senior unsecured notes issued in November 2023, remain unchanged.
The proceeds from the new issuance will be used to pay down
Fortress Transportation and Infrastructure Investors LLC's
revolving credit facility, which had $250 million outstanding as of
September 30, 2023, and for other general corporate purposes. Once
the revolving facility is paid in full, the company's liquidity
will consist of full availability under its $300 million revolving
facility, which matures in September 2025, and a cash balance of
$52.9 million. Moody's expects that the remaining proceeds from the
issuance will be used for asset purchases, consistent with the
company's strategy, although the cash balance may temporarily rise
as the company executes transactions over time.
RATINGS RATIONALE
The existing ratings are unaffected because FTAI Aviation's
capitalization, measured as tangible common equity to tangible
managed assets, of approximately 2% at September 30, 2023,
continues to be below Moody's expectations. Additionally, while the
company's cash balance has fluctuated substantially historically,
recent heavy reliance on the revolving facility signals FTAI
Aviation's willingness to meaningfully reduce liquidity should
opportunities arise.
FTAI Aviation spun off its infrastructure assets in August 2022, at
which point its capital ratio declined to approximately 6%
(adjusted for the impairment of aircraft stranded in Russia and
Ukraine and other one-time expenses) at September 30, 2022. Moody's
had expected that FTAI Aviation would continue to build capital,
relying on retained earnings to finance its asset growth. However,
FTAI Aviation has relied primarily on debt issuance to fund the
growth of its engine fleet, which has resulted in the company's
capital position remaining weak. FTAI Aviation also paid out
approximately $113 million in dividends on common and preferred
shares in the nine months ended September 30, 2023.
FTAI Aviation's ratings reflect the company's highly profitable
aircraft leasing and aerospace products businesses. The firm's
aerospace products business is expanding, representing
approximately 26% of third quarter 2023 consolidated EBITDA. FTAI
Aviation continues to invest in popular CFM56 aircraft engines that
power widely used Airbus and Boeing narrow-body aircraft globally.
Demand recovery for engines and aircraft has improved along with
growing global air travel volumes, resulting in improvement in FTAI
Aviation's lease revenues this year. Moody's notes, however, that
FTAI Aviation's lease revenue for the quarter ended September 30,
2023 moderately declined from the second quarter due to the
company's election to terminate certain leases in anticipation of
re-leasing the equipment at more favorable rates and better terms.
Moody's expects that full-year earnings from FTAI Aviation's recent
fleet investments will drive its debt-to-EBITDA leverage lower; the
company's leverage measured 4.3x at September 30, 2023
(annualized), having increased during the quarter due to
debt-funded acquisitions of aircraft and engines. FTAI Aviation's
credit profile reflects the challenges related to its mostly
debt-financed growth strategy and propensity to, at times, fund
shareholder distributions using debt.
The Ba2 senior unsecured rating is consistent with FTAI Aviation's
Ba2 CFR, reflecting that the notes constitute the preponderance of
the company's debt. The B1 (hyb) preferred stock rating reflects
Moody's expectation that the loss given default of preferred shares
would be higher compared to the company's senior unsecured notes.
The borrower under all of the debt, including revolving credit
facility (unrated), and preferred stock is Fortress Transportation
and Infrastructure Investors LLC. Parent company FTAI Aviation's
Ba2 CFR is at the same level as all of the unsecured debt at
subsidiary Fortress Transportation and Infrastructure Investors LLC
because Moody's expects that, were FTAI Aviation to issue senior
unsecured debt, the debt would be backed by subsidiary guarantees
that effectively eliminate FTAI Aviation's structural subordination
to its rated subsidiary.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
FTAI Aviation's ratings could be upgraded if the company achieves
and maintains profitability measured by the ratio of net income to
average assets above 1%, and significantly strengthens its
capitalization, while reducing debt-to-EBITDA leverage to less than
4.5x, and demonstrates effective balancing of shareholder and debt
holder interests in its financial policy decisions.
The ratings could be downgraded if FTAI Aviation's operating
results deteriorate, its capital position fails to improve, its
liquidity profile weakens, or if the company loses a material
customer or suffers a business disruption that weakens its
financial prospects.
FTAI Aviation Ltd. (Nasdaq: FTAI) is primarily an aircraft and
engine leasing company with total assets of $2.6 billion as of
September 30, 2023. FTAI is externally managed by FIG LLC, also a
Fortress affiliate.
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Finance
Companies Methodology published in November 2019.
FTX GROUP: Gets Clearance to Begin $744-Mil. Grayscale Assets Sale
------------------------------------------------------------------
Steven Church of Bloomberg News reports that FTX Trading Ltd. won
bankruptcy court approval to begin selling its stakes in digital
trusts managed by crypto firm Grayscale Investments in order to
raise money to repay creditors owed billions of dollars.
FTX plans to sell the assets in a way that maximizes the value and
avoids disrupting the market for the digital investments, according
to court documents. Grayscale sold investments linked to various
digital currencies. The buyers didn't hold the actual currencies,
but instead got shares in trusts that Grayscale put together and
managed.
About FTX Group
FTX is the world's second-largest cryptocurrency firm. FTX is a
cryptocurrency exchange built by traders, for traders. FTX offers
innovative products including industry-first derivatives, options,
volatility products and leveraged tokens.
Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that
FTX paused customer withdrawals after it was hit with roughly $5
billion worth of withdrawal requests.
Faced with liquidity issues, FTX on Nov. 9 struck a deal to sell
itself to its giant rival Binance, but Binance walked away from the
deal amid reports on FTX regarding mishandled customer funds and
alleged US agency investigations.
At 4:30 a.m. on Nov. 11, Bankman-Fried ultimately agreed to step
aside, and restructuring vet John J. Ray III was quickly named new
CEO.
FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc.
(d/b/a FTX US), Alameda Research Ltd. and certain affiliated
companies then commenced Chapter 11 proceedings (Bankr. D. Del.
Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022.
Additional entities sought Chapter 11 protection on Nov. 14, 2022.
FTX Trading and its affiliates each listed $10 billion to $50
million in assets and liabilities, making FTX the biggest
bankruptcy filer in the US this year.
According to Reuters, SBF shared a document with investors on Nov.
10, 2022, showing FTX had $13.86 billion in liabilities and $14.6
billion in assets. However, only $900 million of those assets were
liquid, leading to the cash crunch that ended with the company
filing for bankruptcy.
The Hon. John T. Dorsey is the case judge.
The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel;
Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal
North America, LLC as financial advisor. Kroll is the claims agent,
maintaining the page https://cases.ra.kroll.com/FTX/Home-Index
The Official Committee of Unsecured Creditors tapped Paul Hastings
as counsel, FTI Consulting, Inc., as financial advisor, and
Jefferies LLC as the investment banker. Young Conaway Stargatt &
Taylor LLP is the Committee's Delaware and conflicts counsel.
Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory
T. Donilon, Edward L. Schnitzer, and David M. Banker, is
representing Sam Bankman-Fried in the Chapter 11 cases.
White-collar crime specialist Mark S. Cohen has reportedly been
hired to represent SBF in litigation. Lawyers at Paul Weiss
previously represented SBF but later renounced representing the
entrepreneur due to a conflict of interest.
FTX TRADING: Eversheds & Morris Update Ad Hoc Committee Members
---------------------------------------------------------------
Eversheds Sutherland (US) LLP and Morris, Nichols, Arsht & Tunnell
LLP, counsel to the Ad Hoc Committee of Non-US Customers of FTX.com
(the "Ad Hoc Committee") comprising international customers, filed
a verified fourth supplemental statement pursuant to Rule 2019 of
the Federal Rules of Bankruptcy Procedure in the Chapter 11 cases
of FTX Trading Ltd. and affiliates.
Pursuant to Bankruptcy Rule 2019(d), this Fourth Supplemental
Statement supplements the information provided in the Third
Supplemental Statement. Since the date of the Third Supplemental
Statement, certain changes have been made with respect to the
composition of the Ad Hoc Committee and the disclosable economic
interests that the Members represent.
The revised names, addresses, and disclosable economic interests of
the Members are:
1. 168 Trading Limited
5-9 Main Street Gibraltar GX11 1AA
* $2,800,000.00
2. Adam Rabie
* $150,950.00
3. Altana Digital Assets Fund
190 Elgin Avenue
George Town, Grand Cayman,
KY1-9008 Cayman Islands
* $1,039,066.36
4. Auros Tech Limited
OMC Chambers, Wickhams Cay 1,
Road Town, Tortola, British Virgin
Islands, VG1110
* $22,000,000.00
5. Azamat Akylov
* $11,373,198.56
6. B2C Alternative Equity Ltd
C/O Corporation Service Company
251 Little Falls Drive, Wilmington, DE 19808
* $85,000,000.00
7. Blooming Triumph International Limited
13F 162 Queens Road Central, Hong Kong
* $35,860,157.00
8. Blue Basin Ventures LLC
3172 N Rainbow Blvd #26642, Las Vegas, NV 89108
* $1,243,523.00
9. Brian Townsend
* $950,000.00
10. Ceratosaurus Investors, LLC
One Maritime Plaza, Suite 2100,
San Francisco, CA 94111
* $119,558,618.00
11. Chien-Chih Chen
* $200,000.00
12. Coinhouse SAS
14 Avenue De L Opera 75001 Paris France
* $5,699,360.56
13. Crimson International Investment
c/o Al-Hamad Legal Group
4812 Addax Tower, Al Reem
Island, Abu Dhabi UAE
* $6,091,963.14
14. Cyant Arb Ltd.
21 Akademias Ave, 5 floor,
PC2107, Nicosia, Cyprus
* $21,834,136.37
15. Daniel Gupta
* $420,000.00
16. Decent Investments Malta Limited
Quad Central, Q3, Level 9, Triq LEsportaturi,
Zone 1, Central Business District, Birkirkara CBD 1040, Malta
* $4,231,241.93
17. Dietmar Poppe
* $281,807.90
18. Dmitry Kozlov
* $252,185.00
19. dParadigm Fund SPC
DE Cayman Ltd, Landmark Sqaure,
Westbay Road, PO Box 775, Grand Cayman KY1-9
* $575,599.93
20. Falcon Hybrid SPC - RE7 Liquidity Fund SP
3-212 Governors Square 23 Lime Tree Bay Ave
PO Box 30746 SMB Grand Cayman KY1-1203
Cayman Islands
* $1,269,016.63
21. Fasanara Investments 3.0
Harbour Place, 2nd Floor 103 South Church Street
P.O. Box 472 George Town
Grand Cayman KY1-1106 Cayman Islands
* $1,617,814.20
22. Fasanara Investments Master Fund
Harbour Place, 2nd Floor 103 South Church Street
P.O. Box 472 George Town
Grand Cayman KY1-1106 Cayman Islands
* $20,456,948.72
23. FC Cayman A, L.L.C.
c/o Maples Corporate Services Limited
PO Box 309 Ugland House Grand Cayman, KY1-1104
Cayman Islands
* $239,463,454.31
24. Fingolfin GmbH
c/o 3T.LAW
FAO Dr. Henning Frase
Oberlaender Ufer 154a
Koeln, Germany 50968
* $5,700,000.00
25. Flow Ventures Fund L.P.
5-9 Main Street, GX11 1AA
* $3,917,877.00
26. Grzegorz Swiatek
* $540,260.00
27. GSR Markets Limited/GSR International Trading Limited/GSR
Markets
Pre Ltd.
GSR Markets Limited - Suite 5508,
55th Floor, Central Plaza, 18
Harbour Road, Wanchai, Hong Kong
GSR International Trading Limited - Craigmuir Chambers,
Road Town, Tortola, VG 1110, British Virgin Islands
* $37,671,945.00
28. HEKA Funds Sicav plc - Elysium Global Arbirtage
Thomas House, 84 Eccleston
Square, London, SW1V1PX
* $12,060,476.24
29. Iris Partners
Iris Partners Corp. Suites 5 & 6
Horsfords Business Centre Long Point Road
Charlestown St Kitts & Nevis
* $804,000.00
30. Jamie Farquhar
* $1,987,327.00
31. James Goodenough
* $5,670.00
32. Jian Chen
* $1,200,000.00
33. John Ruskin
* $350,000.00
34. Jonathon Hughes
* $22,063.00
35. Kbit Global Limited
Craigmuir Chambers #71 Road Town
Tortola VG1110 British Virgin Islands
* $25,021,826.00
36. Kirk Steele
* $2,500,000.00
37. Koalalgo Research
CO SERVICES CAYMAN LIMITED
P. O. Box 10008 Willow House
Cricket Square Grand Cayman KY1-1001
Cayman Islands
* $3,700,000.00
38. Lemma Technologies Inc.
Via Espana, Delta Bank Building,
6th Floor, Suite 604D, Panama City
PA-8 Panama
* $165,000,000.00
39. Marc-Antoine Julliard
* $140,000.00
40. Marc St. John Wolff Amey
* $637,000.00
41. Michael Anderson
* $1,600,000.00
42. Michael Currie
* $40,000.00
43. Mohammad Alsabah
* $275,000.00
44. Nestcoin Holding Limited
Trinity Chambers, PO Box 4301,
Road Town, Tortola, British Virgin Island
* $3,900,000.00
45. Nexxus Holdings Operations LLC
800 Miramonte Drive, Suite 380
Santa Barbara CA 93109
* $42,461,191.00
46. No Free Lunch Limited
5-9 Main St, Gibraltar GX11 1AA, Gibraltar
* $390,000.00
47. Olympus Peak Trade Claims Opportunities Fund I Non-ECI Master
LP
177 West Putnam Ave Suite 2622- S1 Greenwich, CT 06831
* $13,258,680.00
48. Orange Phoenix LLC
c/o The Corporation Trust Center
1209 Orange Street, Wilmington DE 19801
* $4,573,288.21
49. Owen Ellis
* $957,000.00
50. Patrick Martin
* $500,000.00
51. Patrick Wohlschlegel
* $57,973.85
52. Phoenix Digital
c/o The Corporation Trust Center
1209 Orange Street, Wilmington DE 19801
* $11,290,000.00
53. Podtree Ltd.
26, Kanachrine Place,Ullapool, Highland, Scotland
* $19,581.26
54. PRIMO Holding GmbH
Urbanstrasse 4, D-70839 Gerlingen, Germany
* $853,674.48
55. Raul Jain
* $42,000.00
56. Robert Himmelbauer
* $107,013.57
57. Rodney Clough
* $504,000.00
58. Safe Eagle Holding Limited
Mandar House, 3rd Floor P.O. Box
2196, Johnson’s Ghut Tortola, British Virgin Islands
* $3,200,000.00
59. Samuel Mandel
* $59,600.00
60. Sheval Alijevski
* $146,000.00
61. Sidar Sahin
* $48,780,666.00
62. Silver Point Capital, LP
2 Greenwich Plaza, Greenwich, CT 06830
* $46,172,884.11
63. Svalbard Holdings Limited
c/o Attestor Limited, 7 Seymour Street, W1H 7JW London
* $246,799,157.00
64. Tellurian Exoalpha Digital Assets Systematic Fund
89 Nexus Way, Camana Bay Grand
Cayman, Cayman Islands KY1-
* $1,062,047.90
65. Vicomte Holding LLC as manager of Arceau 507 II LLC, Arceau
507
LLC, Arceau X LLC, Oroboros FTX I LLC
4 Lakeside Drive, Chobham Lakes,
GU24 8BD, Surrey, UK
* $31,292,848.39
66. Yu Ting
* $64,434.00
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 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.
GDB HOLDINGS: Seeks to Hire Allen Vellone as Bankruptcy Counsel
---------------------------------------------------------------
GDB Holdings, LLC seeks approval from the U.S. Bankruptcy Court for
the District of Colorado to employ Allen Vellone Wolf Helfrich &
Factor, PC. as its counsel.
The Debtor requires legal counsel to:
(a) give advice and represent the Debtor in connection with
the general administration of the estate;
(b) confirm any proposed plan of reorganization, all other
contested and adversary matters that arise in this Chapter 11
case;
(c) investigate and litigate any avoidance or other action the
estate may have; and
(d) perform other legal services for the Debtor related to or
arising out of contested matters in this bankruptcy case.
The hourly rates of the firm's counsel and staff are as follows:
Jeffrey A. Weinman $625
Bailey C. Pompea $365
Paralegals $120 to 225
The firm has received a $25,000 retainer pre-petition from the
Debtor.
Bailey Pompea, Esq., an attorney at Allen Vellone Wolf Helfrich &
Factor, 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:
Jeffrey A. Weinman, Esq.
Bailey C. Pompea, Esq.
Allen Vellone Wolf Helfrich & Factor P.C.
1600 Stout Street, Suite 1900
Denver, CO 80202
Telephone: (303) 534-4499
Email: JWeinman@allen-vellone.com
BPompea@allen-vellone.com
About Joyride Brewing
GDB Holdings, LLC, is a Denver-area brewery doing business as
Joyride Brewing.
GDB Holdings, LLC, sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Col. Case No. 23-15347) on Nov. 17,
2023. In its petition, it listed estimated assets between $500,000
and $1 million and estimated liabilities between $1 million and
$10
million.
Jeffrey A. Weinman at ALLEN VELLONE WOLF HELFRICH & FACTOR, P.C.,
is the Debtor's counsel.
GENESIS ENERGY: Moody's Rates New Senior Unsecured Notes 'B3'
-------------------------------------------------------------
Moody's Investors Service assigned a B3 rating to Genesis Energy,
L.P.'s (GEL) proposed senior unsecured notes. Proceeds from the new
notes issuance will be used to refinance the company's 2025 notes,
repay borrowings under its revolving credit facility and for
general partnership purposes. GEL's existing ratings are unchanged,
including the B2 Corporate Family Rating and B3 ratings on its
existing senior unsecured notes. The rating outlook is stable.
"Genesis Energy's proposed notes issuance will improve its
liquidity by addressing its next maturity of notes," stated Thomas
Le Guay, Moody's Vice President. "The financing transactions will
be leverage neutral."
RATINGS RATIONALE
The proposed senior unsecured notes rank pari passu with GEL's
existing senior unsecured notes and are rated B3, the same as GEL's
other senior unsecured notes outstanding and one notch below GEL's
B2 CFR. The notes are contractually subordinated to the secured
obligations under the senior secured credit facility. The size of
the secured credit facility relative to the unsecured notes results
in the notes being rated one notch below the CFR.
GEL's B2 CFR reflects its high leverage and the potential for
continuing negative free cash flow and uncertainty over its cash
flow generation in the remainder of 2023 and 2024. The company's
earnings will likely face headwinds in the near-term from lower
soda ash prices, which have declined since early 2023 and could
offset the benefit of new production volumes from its Granger mine
expansion. The company is benefiting from higher earnings from its
offshore transportation business following completions of US Gulf
of Mexico wells that added to volumes as well as above mid-cycle
earnings for its marine transportation business.
GEL has scale in its primary businesses, a meaningful proportion of
fee-based cash flow, and a high degree of business line
diversification for a company of its size with offshore pipelines,
sodium minerals and sulfur services, marine transportation, and
onshore facilities & transportation operations. The company is a
large US producer of natural soda ash, which enjoys cost advantages
over synthetic soda ash production and generates relatively steady
cash flow. Historically, it has also shown a willingness to issue
common equity and preferred equity to fund acquisitions and
projects, limiting the impact of growth investments on its
leverage.
The SGL-3 Speculative Grade Liquidity Rating reflects Moody's
expectation that GEL will have adequate liquidity through 2024
supported by cash flow from operations and unused availability
under its $850 million revolving credit facility. The revolver
matures in February 2026 following the refinancing of the notes due
2025 (the June 30, 2025 springing maturity date drops if less than
$150 million of the 2025 notes remain outstanding). Availability
under the revolver as of September 30, 2023, was $642.1 million
after accounting for $198.4 million of borrowings under the credit
facility and $9.5 million of letters of credit (subject to
compliance with financial covenants). The credit facility has three
financial covenants: (1) a maximum Debt to EBITDA ratio of 5.50x;
(2) a maximum Senior Secured Debt to EBITDA ratio of 2.5x; and (3)
a minimum interest coverage ratio (EBITDA / Interest Expense) of
2.5x. Moody's expects GEL to remain in compliance with its
financial covenants through year-end 2024, but the cushion for
future compliance could be modest. The company's next debt maturity
is $339 million on notes due in May 2026. Substantially all of
GEL's assets are currently pledged as security under the revolver
which limits the extent to which asset sales could provide a source
of additional liquidity, if needed.
The stable outlook reflects Moody's expectation that GEL's credit
metrics will remain supportive of the current rating, with leverage
metrics improving despite negative free cash flow generation.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
The ratings could be downgraded if GEL's core business fundamentals
deteriorate, it generates greater than expected negative free cash
flow or does not execute on growth projects, Debt to EBITDA rises
above 6.0x on a sustained basis or interest coverage is below 2.0x.
The CFR could be upgraded if Moody's expects GEL's businesses to
exhibit steady earnings growth and Debt to EBITDA is sustained at
or below 5.0x.
Genesis Energy L.P., headquartered in Houston, Texas, is a master
limited partnership (MLP) with midstream assets located in the US
Gulf Coast region and soda ash operations in Wyoming. The company
conducts a wide variety of operations through four different
business segments: offshore pipeline transportation, sod a and
sulfur services, onshore facilities & transportation, and marine
transportation.
The principal methodology used in this rating was Midstream Energy
published in February 2022.
GENESIS ENERGY: S&P Rates $550MM Senior Unsecured Notes 'B'
-----------------------------------------------------------
S&P Global Ratings assigned its 'B' issue-level rating and '3'
recovery rating to Genesis Energy L.P.'s (GEL) $550 million senior
unsecured notes. The '3' recovery rating indicates S&P's
expectation of meaningful (50%-70%; rounded estimate: 50%) recovery
in the event of a default.
The company will use proceeds from this issuance to fully redeem
its 2025 notes and for general corporate purposes, including
repaying a portion of the revolver borrowings outstanding under its
credit facility.
S&P said, "The issuer credit rating on GEL is 'B' with a stable
outlook. We expect GEL's leverage (S&P Global Ratings-adjusted)
will remain about 6.5x through 2023. We also expect the company
will maintain adequate liquidity for the next 12 months."
GENESIS GLOBAL: McDermott Updates List of Genesis Crypto Creditors
------------------------------------------------------------------
The law firm McDermott Will & Emery LLP filed an amended verified
statement pursuant to Rule 2019 of the Federal Rules of Bankruptcy
Procedure to disclose that in the Chapter 11 cases of Genesis
Global Holdco, LLC and its affiliated debtors, the firm represents
the Genesis Crypto Creditors Ad Hoc Group.
Since filing the Verified Statement, one additional creditor has
joined the Genesis Crypto Creditors Ad Hoc Group. Such creditor is
reflected as Member 12 on the list of members.
Additional creditors of the Debtors may become clients of McDermott
and members of the Genesis Crypto Creditors Ad Hoc Group and
certain members of the Genesis Crypto Creditors Ad Hoc Group may
cease to be members in the future.
The Members of Genesis Crypto Creditors Ad Hoc Group's nature and
amount of disclosable economic interests held in relation to the
Debtors are: Member 1; Member 2; Member 3 ($24,546.01); Member 4;
Member 5; Member 6; Member 7; Member 8 ($736,589.58); Member 9;
Member 10; Member 11; and Member 12.
Counsel to the Genesis Crypto Creditors Ad Hoc Group:
McDERMOTT WILL & EMERY LLP
Darren Azman, Esq.
Joseph B. Evans, Esq.
Lucas Barrett, Esq.
One Vanderbilt Avenue
New York, NY 10017-3852
Telephone: (212) 547-5400
Facsimile: (212) 547-5444
E-mail: dazman@mwe.com
E-mail: jbevans@mwe.com
E-mail: lbarrett@mwe.com
- and -
Gregg Steinman, Esq.
333 SE 2nd Avenue, Suite 4500
Miami, FL 33131-2184
Telephone: (305) 329-4473
Facsimile: (305) 503-8805
E-mail: gsteinman@mwe.com
About Genesis Global
Genesis Global Holdco, LLC, through its subsidiaries, and Global
Trading, Inc., provide lending and borrowing, spot trading,
derivatives and custody services for digital assets and fiat
currency.
Genesis Global Capital, LLC (GGC) and Genesis Asia Pacific PTE.
LTD. (GAP) provide lending and borrowing, spot trading, derivatives
and custody services for digital assets and fiat currency. Genesis
Global Holdco, LLC owns 100% of GGC and GAP.
Genesis Global Holdco, LLC, GGC and GAP each filed a voluntary
petition for relief under Chapter 11 of the Bankruptcy Code (Bankr.
S.D.N.Y. Lead Case No. 23-10063) on Jan. 19, 2023. The cases are
pending before the Honorable Sean H. Lane.
At the time of the filing, Genesis Holdco reported $100 million to
$500 million in both assets and liabilities.
Genesis Holdco is a sister company of Genesis Global Trading, Inc.
("GGT") and 100% owned by Digital Currency Group, Inc. ("DCG").
GGT, DCG and certain of the Holdco subsidiaries are not included in
the Chapter 11 filings. The non-debtor subsidiaries include
Genesis UK Holdco Limited, Genesis Global Assets, LLC, Genesis Asia
(Hong Kong) Limited, Genesis Bermuda Holdco Limited, Genesis
Custody Limited ("GCL"), GGC International Limited ("GGCI"), GGA
International Limited, Genesis Global Markets Limited, GSB 2022 II
LLC, GSB 2022 III LLC and GSB 2022 I LLC.
The Debtors tapped Cleary Gottlieb Steen & Hamilton, LLP as
bankruptcy counsel; Morrison Cohen, LLP as special counsel; Alvarez
& Marsal Holdings, LLC as financial advisor; and Moelis & Company,
LLC as investment banker. Kroll Restructuring Administration, LLC,
is the Debtors' claims and noticing agent and administrative
advisor.
The ad hoc group of creditors is represented by Kirkland & Ellis,
LLP and Kirkland & Ellis International, LLP. The ad hoc group of
Genesis lenders is represented by Proskauer Rose, LLP. The U.S.
Trustee for Region 2 appointed an official committee to represent
unsecured creditors in the Debtors' Chapter 11 cases. The
committee tapped White & Case, LLP as bankruptcy counsel; Houlihan
Lokey Capital, Inc., as investment banker; Berkeley Research Group,
LLC as financial advisor; and Kroll as information agent.
GLOBAL FERTILITY: PCO Reports No Change in Patient Care Quality
---------------------------------------------------------------
David Crapo, the court-appointed patient care ombudsman, filed a
second report regarding the quality of patient care provided by
Global Fertility & Genetics New York, LLC.
The report covers the period from Sept. 15 to Nov. 14, 2023.
The PCO has not received any information indicating that quality of
care provided to Global Fertility's patients (including patient
safety) is not acceptable and is currently declining or is
otherwise being materially compromised, but reserves making an
actual finding in that regard upon receipt of the information
described immediately above that has been requested from the
company.
In light of the lack of any negative information about Global
Fertility and its clinical staff, the oversight and supervision
provided by the company's clinical staff appears to sufficient to
uncover quality of care deficits as they arise. The PCO awaits
receipt of further documents and information requested from Global
Fertility to make an actual finding on this point.
The PCO's receipt on a regular basis of updates to the information
he has requested from Global Fertility in this and in his prior
report should provide a reasonable basis to monitor whether the
quality of care (including patient safety) provided by the company
is declining or otherwise materially compromised.
The PCO has found no evidence of a decline in the quality of
patient care and safety at the facility.
A copy of the ombudsman report is available for free at
https://urlcurt.com/u?l=yuNsdh from PacerMonitor.com.
The ombudsman may be reached at:
David N. Crapo
Gibbons P.C.
One Gateway Center
Newark, New Jersey 07102-5310
Telephone: (973) 596-4523
Facsimile: (973) 639-6244
Email: dcrapo@gibbonslaw.com
About Global Fertility & Genetics
Global Fertility & Genetics, New York, LLC is a reproductive
endocrinology and fertility center in New York.
The Debtor filed Chapter 11 petition (Bankr. S.D.N.Y. Case No.
23-10905) on June 6, 2023, with $289,407 in assets and $1,123,740
in liabilities. Judge Philip Bentley oversees the case.
Michael J. Kasen, Esq., at Kasen & Kasen, P.C. is the Debtor's
legal counsel.
David Crapo is the patient care ombudsman appointed in the Debtor's
Chapter 11 case.
GLOBAL SOURCING: Seeks to Hire Gensburg Calandriello as Attorney
----------------------------------------------------------------
Global Sourcing Connection, Ltd. seeks approval from the U.S.
Bankruptcy Court for the Northern District of Illinois to employ
Gensburg Calandriello & Kanter, P.C. as its attorneys.
The Debtor requires Gensburg to:
a. provide legal advice with respect to the Debtor's powers
and duties as debtor-in-possession in the continued operation of
its business and management of its property;
b. negotiate, draft, and pursue all documentation necessary
in this case;
c. prepare on behalf of the Debtor all applications, motions,
answers, orders, reports, and other legal papers necessary to the
administration of the Debtor's estate;
d. appear in court and protect the interests of the Debtor
before the Court;
e. attend all meetings and negotiate with representatives of
creditors, the United States Trustee, and other
parties-in-interest;
f. provide legal advice regarding bankruptcy law, corporate
law, corporate governance, transactional, tax, labor, litigation,
and other issues to the Debtor in connection with the Debtor's
ongoing business operations; and
g. perform all other legal services for, and provide all
other legal advice to, the Debtor which may be necessary and proper
in this case.
Gensburg's discounted hourly rates are:
Matthew T. Gensburg $450
E. Philip Groben $335
Alexis E. Clinebell $350
Shareholder $275 - $500
Senior Counsel $450
Associates $260 - $350
Legal Assistants/Paralegals $125
Gensburg Calandriello does not hold or represent any interest
adverse to the Debtor or its estate, the Debtor's creditors, or any
other party-in-interest in connection with this case, and is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code, according to court filings.
The firm can be reached through:
Matthew T. Gensburg, Esq.
Gensburg Calandriello & Kanter, P.C.
200 West Adams St., Ste. 2425
Chicago, IL 60606
Tel: (312) 263-2200
Fax: (312) 263-2242
Email: mgensburg@gcklegal.com
About Global Sourcing Connection, Ltd.
Global Sourcing Connection, Ltd. is a promotional products
distributor with factory direct capabilities.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ill. Case No. 23-14996) on November 7,
2023. In the petition signed by Jennifer Arenson, CEO, the Debtor
disclosed up to $50,000 in assets and up to $10 million in
liabilities.
Judge Timothy A. Barnes oversees the case.
Matthew T. Gensburg, Esq., at Gensburg Calandriello & Kanter, PC,
represents the Debtor as legal counsel.
GOLDEN INDUSTRIAL: Taps Jacqueline I. Rivera Gonzalez as Accountant
-------------------------------------------------------------------
Golden Industrial Laundry, Inc. seeks approval from the U.S.
Bankruptcy Court for the District of Puerto Rico to employ
Jacqueline I. Rivera Gonzalez, CPA as accountant.
The Debtor requires Jacqueline I. Rivera Gonzalez, CPA to provide
general accounting and financial consulting services in connection
with this bankruptcy petition and file the disclosure statement and
plan of reorganization.
The Debtor will compensate Jacqueline I. Rivera Gonzalez, CPA at
$300 per hour.
Jacqueline I. Rivera Gonzalez, CPA, assured the Court that she is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code and does not represent any interest adverse to
the Debtor and its estates.
Jacqueline I. Rivera Gonzalez may be reached at:
Jacqueline I. Rivera Gonzalez, CPA
Urb. La Rambla 1108 Avila St.
Ponce, PR 00730
Telephone: (787) 843-1679
About Golden Industrial Laundry
Golden Industrial Laundry, Inc. filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case
No. 23-03509) on Oct. 30, 2023, listing $964,229 in total assets
and $1,874,299 in total liabilities.
Judge Maria De Los Angeles Gonzalez oversees the case.
Landrau Rivera & Assoc., led by Noemi Landrau Rivera, Esq., serves
as the Debtor's legal counsel.
GP INC: Seeks Approval to Hire Allen Vellone as Bankruptcy Counsel
------------------------------------------------------------------
GP, Inc. seeks approval from the U.S. Bankruptcy Court for the
District of Colorado to employ Allen Vellone Wolf Helfrich &
Factor, PC.
The Debtor requires legal counsel to:
(a) give advice and represent the Debtor in connection with
the general administration of the estate;
(b) confirm any proposed plan of reorganization, all other
contested and adversary matters that arise in this Chapter 11
case;
(c) investigate and litigate any avoidance or other action the
estate may have; and
(d) perform other legal services for the Debtor related to or
arising out of contested matters in this bankruptcy case.
The hourly rates of the firm's counsel and staff are as follows:
Jeffrey A. Weinman $625
Bailey C. Pompea $365
Paralegals $120 to 225
The firm has received a $25,000 retainer pre-petition from the
Debtor.
Bailey Pompea, Esq., an attorney at Allen Vellone Wolf Helfrich &
Factor, 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:
Jeffrey A. Weinman, Esq.
Bailey C. Pompea, Esq.
Allen Vellone Wolf Helfrich & Factor P.C.
1600 Stout Street, Suite 1900
Denver, CO 80202
Telephone: (303) 534-4499
Email: JWeinman@allen-vellone.com
BPompea@allen-vellone.com
About GP, Inc.
GP, Inc. sought protection for relief under Chapter 11 of the
Bankruptcy Code (Bankr. D. Colo. Case No. 23-15319) on November 16,
2023, listing up to $50,000 in assets and $500,001 to $1 million in
liabilities.
Jeffrey Weinman, Esq. at Allen Vellone Wolf Helfrich & Factor P.C.
represents the Debtor as counsel.
GREENWAVE TECHNOLOGY: Has 45 Days to Submit Nasdaq Compliance Plan
------------------------------------------------------------------
Greenwave Technology Solutions, Inc., disclosed in a Form 8-K filed
with the Securities and Exchange Commission that it received notice
from the Listing Qualifications Department of The Nasdaq Capital
Market providing that the Company has 45 calendar days from Nov.
27, 2023, to submit a plan to regain compliance with NASDAQ's
continued listing requirements.
Greenwave received a written notice from NASDAQ on June 24, 2016,
indicating that NASDAQ has determined that the Company has failed
to comply with NASDAQ Listing Rule 5550(b)(1). NASDAQ Listing Rule
5550(b)(1) requires that companies listed on NASDAQ maintain a
minimum of $2,500,000 in stockholders' equity for continued
listing. The Company's Quarterly Report on Form 10-Q for the
quarter ended Sept. 30, 2023 reported stockholders' equity below
the $2,500,000 minimum requirement for continued listing and, as of
the date of the Notice, NASDAQ determined that the Company did not
meet the alternatives of market value of listed securities or net
income from continuing operations. As previously disclosed on Oct.
6, 2023, the Company received a letter from NASDAQ indicating that
for the previous 30 consecutive business days, the bid price for
the Company's common stock closed below the minimum $1.00 per share
requirement for continued listing on NASDAQ under Nasdaq Listing
Rule 5550(a)(2).
The Company intends to timely submit a plan to regain compliance to
NASDAQ and, if the plan is accepted, NASDAQ can grant an exception
of up to 180 calendar days from Nov. 27, 2023, for the Company to
evidence compliance.
About Greenwave
Headquartered in Chesapeake, VA, Greenwave Technology Solutions,
Inc. -- https://www.greenwavetechnologysolutions.com -- through its
wholly owned subsidiary Empire Services, Inc. is an operator of
metal recycling facilities in Virginia and North Carolina. At
these facilities, Empire collects, classifies, and processes raw
scrap metal (ferrous and nonferrous) for recycling.
New York, NY-based RBSM LLP, the Company's auditor since 2017,
issued a "going concern" qualification in its report dated March
31, 2023, citing that the Company has an accumulated deficit, and
expects future losses that raise substantial doubt about the
Company's ability to continue as a going concern.
Greenwave disclosed in a Form 8-K filed with the Securities and
Exchange Commission that on Oct. 3, 2023, it received a letter from
The Nasdaq Stock Market LLC indicating that, for the last 30
consecutive business days, the bid price for the Company's common
stock had closed below the minimum $1.00 per share requirement for
continued listing on The Nasdaq Capital Market under Nasdaq Listing
Rule 5550(a)(2).
GUARDIAN FUND: Examiner Hires Golden Goodrich as Assistant
----------------------------------------------------------
Jeffrey I. Golden, the examiner of Guardian Fund, LLC, seeks
approval from the U.S. Bankruptcy Court for the District of Nevada
to employ Golden Goodrich LLP as his assistant.
The firm will be assisting the examiner in the preparation of his
report. The majority of the work will be performed by Daphne Masin,
a field representative, and Sara Tidd, an attorney.
The firm will provide the required services at a rate of $125 for
Ms. Masin and $250 for Ms. Tidd, which are below the examiner's
reduced rate of $500 for this case. In addition, the firm will be
reimbursed its actual, out-of-pocket expenses.
As disclosed in the court filings, Golden Goodrich is disinterested
within the meaning of 11 U.S.C. Secs. 327(a) and 101(14).
The firm can be reached through:
Jeffrey I. Golden, Esq.
GOLDEN GOODRICH LLP
3070 Bristol Street, Suite 640
Costa Mesa, CA 92626
Telephone: (714) 966-1000
Facsimile: (714) 966-1002
Email: jgolden@go2.law
About Guardian Fund
The WendellLa and Nancy King Family Trust and several other
creditors represented by Jeffrey L. Hartman filed a Chapter 7
involuntary petition (Bankr. D. Nev. Case No. 23-50117) against
Guardian Fund, LLC, a company in Reno, Nev., on March 17, 2023.
On April 11, 2023, Guardian Fund filed a Chapter 11 voluntary
petition (Bankr. D. Nev. Case No. 23-50233). At the time of the
filing, Guardian Fund reported $10 million to $50 million in assets
and $50 million to $100 million in liabilities.
On April 27, 2023, the Nevada bankruptcy court approved the
stipulation filed in both cases by Guardian Fund and the
petitioning creditors. The order directed the consolidation of the
two cases, with Case No. 23-50177 as the lead case, and set the
Chapter 11 petition date to March 17, 2023. Judge Natalie M. Cox
oversees the case.
The Debtor tapped Harris Law Practice, LLC and Excelsis Accounting
Group as legal counsel and accountant, respectively.
On May 10, 2023, the U.S. Trustee for Region 17 appointed an
official committee to represent unsecured creditors. Sallie B.
Armstrong, Esq., at McDonald Carano, LLP serves as the committee's
legal counsel.
Jeffrey Golden, Esq., is the examiner appointed in the Debtor's
Chapter 11 case.
GUY B. HENDRIX: Voluntary Chapter 11 Case Summary
-------------------------------------------------
Debtor: Guy B. Hendrix, Sr. Revocable Living Trust
P.O. Box 5189
Holly Springs, MS 38634
Type of Debtor: Revocable Trust
Chapter 11 Petition Date: November 30, 2023
Court: United States Bankruptcy Court
Northern District of Mississippi
Case No.: 23-13664
Debtor's Counsel: Craig M. Geno, Esq.
LAW OFFICES OF CRAIG M. GENO, PLLC
587 Highland Colony Parkway
Ridgeland, MS 39157
Tel: 601-427-0048
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Guy Hendrix as trustee.
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/3TZCPOY/Guy_B_Hendrix_Sr_Revocable_Living__msnbke-23-13664__0001.0.pdf?mcid=tGE4TAMA
HAL LUFTIG: Unsecureds Will Get 15% to 25% of Claims Over 5 Years
-----------------------------------------------------------------
Hal Luftig Company, Inc., filed with the U.S. Bankruptcy Court for
the Southern District of New York a First Amended Small Business
Plan of Reorganization dated November 27, 2023.
The Debtor is a New York corporation. Mr. Luftig formed the Debtor
in 2000 as a Broadway production company, and it has been in
business in that capacity ever since.
The filing of the Debtor's chapter 11 case was precipitated by the
entry of an order confirming an unfavorable arbitration award
against the Debtor and Mr. Luftig. On August 12, 2019, FCP
initiated an arbitration against the Debtor for breach of contract,
and against Mr. Luftig for breach of fiduciary duty. On April 1,
2022, the arbitrator issued his final award (the "Arbitration
Award"). On December 7, 2022, after the Petition Date, the District
Court entered the Final Judgment in favor of FCP.
Under Sections 1191(c) and (d) of the Bankruptcy Code, the Debtor
will fund the Plan payments to creditors utilizing its disposable
income for a period of 5 years. In addition, payments to creditors
will be made from the Luftig Cash Contribution which shall be made
by Hal Luftig, or his designee.
Upon entry of a Confirmation Order by the U.S. District Court for
the Southern District of New York which becomes a final and
non-appealable Order, Mr. Luftig will make a contribution which
will consist of the cash and other consideration, including: (i) a
cash payment to be made on the Effective Date; (ii) the
subordination in right of payment of certain allowed claims held by
Mr. Luftig; (iii) an employment agreement by and between Mr. Luftig
and the Debtor which provides for Mr. Luftig's non-exclusive
employment with the Debtor for a five-year period (the duration of
the Plan); (iv) Mr. Luftig's provision of the Back-stop Commitment;
(v) dismissal of the appeal filed by Mr. Luftig in the Second
Circuit Court of Appeals of the decision by the District Court
confirming the Arbitration Award; and (vi) for the life of the
Plan, Mr. Luftig will not charge the Debtor rent for the space
utilized in his home in New York City.
The Luftig Contribution is conditioned upon confirmation of the
Plan which includes a release in favor of Mr. Luftig by the FCP
Parties (the "Luftig Release") from certain claims which the FCP
Parties may have against the Debtor or Mr. Luftig, including
without limitation, any claims under the Judgment entered by the
District Court in favor of FCP Entertainment Partners, LLC, but
excluding any claims FCP has under the Plan.
The Luftig Cash Contribution will be utilized to pay the Allowed
FCP Claim. Allowed Administrative Expenses will be paid from the
Debtor's business operations. The Plan provides for payment of
Allowed Administrative Expenses, Allowed Priority Claims, including
Priority Tax Claims, Allowed Secured Claims, and Allowed Other
Priority Claims in accordance with the Bankruptcy Code, and
provides for the payment of certain amounts to Allowed Unsecured
Claims, which includes the remainder of the Allowed FCP Claim not
satisfied by the Luftig Cash Contribution.
Class 4 consists of the Allowed Claims of non-priority unsecured
creditors, other than the FCP Claim. The Class 4 Claims are
estimated to total $328,628.92, not including the remaining amount
due to FCP after it receives a payment as the only holder of an
Allowed Class 3 Claim. The holders of Allowed Class 4 Claims will
receive their Pro Rata Share of the Disposable Income over the life
of the Plan, and the portion, if any, of the Luftig Cash
Contribution remaining after payment of Allowed Administrative
Expense Claims, the Priority Tax Claim, and a portion of the
Allowed FCP Claim. The unpaid portion of the Allowed FCP Claim
shall be treated as an allowed Class 4 Claim for distribution
purposes and shall receive its Pro Rata Share of the Disposable
Income.
The Debtor estimates that holders of Class 4 Claims will receive
distributions equal to approximately 15% to 25% of their Allowed
Claims, which estimate shall be confirmed in the Plan Supplement.
The holders of Allowed Class 4 Claims are impaired and are entitled
to vote to accept or reject the Plan.
Class 5 consists of the Insider Claims which will be liquidated and
allowed as Allowed General Unsecured Claims. As part of the Luftig
Contribution each of the Class 5 Claims shall be subordinated in
right of payment to the Debtor's obligations to make payments and
distributions under the Plan to holders of higher priority claims.
The holders of Class 5 Claims will receive no distribution under
the Plan and are deemed to have rejected the Plan.
Class 6 consists of the holder of the equity interests in the
Debtor, Mr. Luftig. The holder of the Class 6 Interest will receive
no distributions under the Plan on account of his equity interest
in the Debtor. However, Mr. Luftig will retain his equity interest
in the Debtor after the confirmation of the Plan. The holder of the
Class 6 Interest is unimpaired under the Plan and is deemed to
accept the Plan.
The Plan will be funded with the Debtor's Disposable Income, the
Luftig Cash Contribution, the Luftig Settlement Payment, and the
Backstop Commitment. The Luftig Contribution is conditioned upon
entry of the Confirmation Order by the District Court which must
include approval of the Luftig Release. The Luftig Contribution
also includes execution of the Employment Agreement, the agreement
not to require rent payments from the Debtor, and the agreement to
subordinate all Insider Claims as well as payments due under the
Luftig Secured Note and Security Agreement. The Luftig Cash
Contribution and Luftig Settlement Payment shall be made within 10
days after entry of the Final Confirmation Order.
A full-text copy of the First Amended Plan dated November 27, 2023
is available at https://urlcurt.com/u?l=AUr0kl from
PacerMonitor.com at no charge.
Attorneys for Debtor:
Sheryl P. Giugliano, Esq.
Michael S. Amato, Esq.
Ruskin Moscou Faltischek, P.C.
1425 RXR Plaza
East Tower, 15th Floor
Uniondale, NY 11556
Telephone: 516-663-6600
Email: sgiugliano@rmfpc.com
mamato@rmfpc.com
About Hal Luftig Company
Hal Luftig Company, Inc., a theatrical producer in New York, filed
a petition under Chapter 11, Subchapter V of the Bankruptcy Code
(Bankr. S.D.N.Y. Case No. 22-11617) on Dec. 1, 2022, with $100,000
to $500,000 in assets and $1 million to $10 million in liabilities.
Charles Persing has been appointed as Subchapter V trustee.
Judge John P. Mastando III presides over the case.
Ruskin Moscou Faltischek, P.C., RK Consultants, LLC and CBIZ, Inc.
are the Debtor's legal counsel, financial advisor and tax
accountant, respectively.
HALF LION BREWING: Court OKs Cash Collateral Access Thru Dec 18
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Western District of Washington
authorized Half Lion Brewing Company, LLC to use cash collateral on
an interim basis, in accordance with the budget, with a 15%
variance, through December 18, 2023.
Specifically, the Debtor is permitted to use cash collateral to
satisfy pre-petition payroll obligations and associated payroll
taxes and insurance for the Debtor's employees for the November 15,
2023 payroll with included pre-petition payroll for the period of
October 16, 2023 through October 29, 2023 and October 30, 2023
through November 12, 2023 which are wage claims entitled to
priority under 11 U.S.C. Section 507(a)(4) and that payment is
necessary to avoid irreparable harm to the estate.
As adequate protection for the Debtor's use of the cash collateral
on an interim basis, the Court grants the U.S. Small Business
Administration replacement liens in the Debtor's post-petition
cash, accounts receivable and inventory, and the proceeds of each
of the foregoing, to the same extent and priority as any duly
perfected and unavoidable liens in cash collateral held by the
secured creditors as of the petition date, to the extent that any
cash collateral of the Secured Creditors are actually used by the
Debtor.
The Debtor is ordered to pay adequate protection payments to the
SBA in the amount of $629 per week or $2726 per month starting on
December 18, 2023.
A second interim hearing on the matter is set for December 18 at 1
p.m.
A copy of the order is available at https://urlcurt.com/u?l=GyO5DJ
from PacerMonitor.com.
About Half Lion Brewing Company
Half Lion Brewing Company LLC -- https://www.halflion.com/ -- is a
beer manufacturing company.
Half Lion Brewing Co. LLC sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Wash. Case No.
23-41981) on November 9, 2023. In the petition filed by Jason
Nelseon, as managing member, the Debtor reports total assets of
$261,946 and total liabilities of $1,308,426.
The Honorable Bankruptcy Judge Mary Jo Heston handles the case.
Virginia A. Burdette has been appointed as Subchapter V trustee.
The Debtor is represented by Steven M Palmer, Esq. at Curtis,
Casteel & Palmer, PLLC.
HANESBRAND INC: Moody's Cuts CFR to 'B1', Outlook Negative
----------------------------------------------------------
Moody's Investors Service downgraded Hanesbrands Inc.'s corporate
family rating to B1 from Ba3, probability of default rating to
B1-PD from Ba3-PD and the senior unsecured ratings to B3 from B1.
Moody's also affirmed the Ba2 senior secured bank credit facilities
ratings and the SGL-2 speculative grade liquidity rating (SGL)
remains unchanged. The outlook is maintained at negative.
The ratings downgrades reflect the company's significant earnings
declines through 2023 and Moody's expectation that leverage and
coverage credit metrics will remain weak through rest of 2023 and
first half of 2024. From 2022 through early 2023, Hanesbrands had
dealt with an industrywide pullback in inventory purchases from
large retailers, a dynamic which was exacerbated by the company's
material customer concentration. Additionally, the company was
contending with the impact of inflation on consumer spending and on
input costs which weighed on topline and margins. While the
innerwear business has recently stabilized, the activewear
(Champion) business has remained challenged because of lower
customer demand, high competition, a promotional environment and
execution missteps which has led to revenue dropping at a high-teen
percentage rate for the last four quarters. The company has also
been dealing with higher interest rates. As a consequence,
debt/EBITDA has increased to 6.8x for the LTM ending September 30,
2023 from 4.5x for the LTM ending September 30, 2022 and
EBITA/Interest has deteriorated to 1.4x from 4.3x over the same
time period.
While Moody's anticipates that the company will benefit from
continued stabilization of the core innerwear business, lower input
costs, increased cash flow from inventory reductions and the impact
of various recent cost savings initiatives, there remain material
headwinds on the activewear business. To a lesser extent, Moody's
expects softness at the company's international operations where
the key Australian market is seeing particular challenges.
Nonetheless, Moody's anticipates leverage and EBITA/Interest
coverage to improve to about 4.5x and 1.9x by year-end 2024. The
company has announced a review of strategic options for the
Champion business which Moody's views as a credit positive given 1)
the difficulties of turning around that business 2) the likelihood
that a preponderance of proceeds of any transaction would be used
for debt repayment (given management's stated focus on leverage
reduction), and 3) a transaction would allow for increased focus on
the core innerwear business.
The outlook remains negative, reflecting the risks associated with
a difficult consumer spending environment, challenging Champion
business and uncertainty around a potential transaction for
Champion, all of which may temper or delay an improvement in credit
metrics.
RATINGS RATIONALE
Hanesbrands' B1 CFR reflects the company's significant scale in the
global apparel industry, its well-known brands, leading share in
the innerwear product category and typically low-cost supply chain.
Moody's expect that the company will remain focused on reducing
leverage to its stated long-term net leverage target of 2.0x-3.0x
on reported EBITDA while executing its multiyear strategy (Full
Potential transformation Plan). The B1 CFR also reflects the
company's good liquidity and sufficient covenant cushion following
a recent amendment. Additionally, management has taken
creditor-friendly steps such as halting dividends and reducing
capital expenditures which should bolster free cash flow and
liquidity.
However, the company is dealing with uncertain consumer demand and
significant topline and earning weakness at its Champion business
which are weighing on credit metrics. The company has announced a
review of strategic options of the Champion brand which Moody's
views as a credit positive given that business' line's particular
challenges. However, there is uncertainty around the probability
and timing of any transaction.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Ratings could be upgraded following a sustained improvement in
operating performance and credit metrics and the maintenance of
good liquidity with adequate covenant cushion. Quantitatively,
ratings could be upgraded if Moody's-adjusted debt/EBITDA is
maintained below 4.5x and EBITA/Interest is maintained above
2.25x.
Ratings could be downgraded should the company fail to reverse its
current negative revenue and profitability trends. Ratings could
also be downgraded if any Champion brand transaction were to result
in credit metrics remaining weak. Quantitatively, ratings could be
downgraded if Moody's-adjusted debt/EBITDA remains above 5.5x and
EBITA/Interest is sustained below 1.75x.
Headquartered in Winston-Salem, NC, Hanesbrands Inc. is a
manufacturer and distributor of basic apparel products under brands
that include Hanes, Champion, Maidenform, Bali, Bonds and Playtex.
Revenue is about $5.8 billion for the twelve months ending October
1, 2023.
The principal methodology used in these ratings was Retail and
Apparel published in November 2023.
HARLEM PROPERTIES: Voluntary Chapter 11 Case Summary
----------------------------------------------------
Debtor: Harlem Properties, L.L.C
174 Grand St
White Plains, NY 10601
Chapter 11 Petition Date: November 30, 2023
Court: United States Bankruptcy Court
Southern District of New York
Case No.: 23-22887
Judge: Hon. Sean H. Lane
Debtor's Counsel: Lawrence Morrison, Esq.
MORRISON TENENBAUM PLLC
87 Walker Street, Second Floor
New York, NY 10013
Email: lmorrison@m-t-law.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Janine Zargar as member.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/E7PZUEI/HARLEM_PROPERTIES_LLC__nysbke-23-22887__0001.0.pdf?mcid=tGE4TAMA
HENDRIX FARMING: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: Hendrix Farming, LLC
P.O. Box 5189
Holy Springs, MS 38634
Chapter 11 Petition Date: November 30, 2023
Court: United States Bankruptcy Court
Northern District of Mississippi
Case No.: 23-13663
Debtor's Counsel: Craig M. Geno, Esq.
LAW OFFICES OF CRAIG M. GENO, PLLC
587 Highland Colony Parkway
Ridgeland, MS 39157
Tel: 601-427-0048
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Guy Hendrix as member.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/3NFKECA/Hendrix_Farming_LLC__msnbke-23-13663__0001.0.pdf?mcid=tGE4TAMA
IBIO INC: Board Approves 20-to-1 Reverse Common Stock Split
-----------------------------------------------------------
iBio, Inc. announced that its Board of Directors approved a 20-to-1
reverse split of the Company's common stock, par value $0.001 per
share effective at 12:01 a.m. ET on Nov. 29, 2023. The Common
Stock began trading on a split-adjusted basis when the market
opened on Nov. 29, 2023, with the new CUSIP number 451033708.
The reverse stock split was authorized by iBio's stockholders at
the Company's 2023 Annual Meeting, held on Nov. 27, 2023, with a
ratio ranging from 1-for-5 to 1-for-20, with the ratio within such
range to be determined at the discretion of the Company's Board of
Directors. As a result of the reverse stock split, every 20 shares
of the Company's Common Stock issued and outstanding will be
automatically combined into one share of common stock, with no
change in the $0.0001 par value per share. Holders of fractional
shares will be entitled to receive a cash payment equal to the
number of shares of the Common Stock held by such stockholder
before the reverse stock split that would otherwise have been
exchanged for such fractional share interest multiplied by the
average closing sales price of the Common Stock as reported on the
NYSE American for the ten days preceding the Effective Date. As a
result of the reverse split, the number of shares of the Company's
outstanding Common Stock will be reduced from 28,100,733 shares to
1,405,036 shares.
The exercise prices of all outstanding stock options, warrants, and
equity incentive plans will be adjusted in accordance with their
respective terms. The reverse stock split will affect all
stockholders uniformly and will not affect any stockholder's
ownership percentage of the Company's shares with the exception of
those holders of fractional shares.
The Company's transfer agent, Continental Stock Transfer & Trust
Company, which is also acting as the exchange agent for the reverse
split, will send instructions to stockholders of record who hold
stock certificates regarding the exchange of their old certificates
for new certificates, should they wish to do so. Stockholders who
hold their shares in brokerage accounts or "street name" are not
required to take any action to effect the exchange of their
shares.
About iBio Inc.
iBio, Inc. -- http://www.ibioinc.com-- iBio develops
next-generation biopharmaceuticals using computational biology and
3D-modeling of subdominant and conformational epitopes,
prospectively enabling the discovery of new antibody treatments for
hard-to-target cancers and other diseases. iBio's mission is to
decrease drug failures, shorten drug development timelines, and
open up new frontiers against the most promising targets.
iBio reported a net loss available to the Company's stockholders of
$65.01 million for the year ended June 30, 2023, compared to a net
loss available to stockholders of $50.39 million for the year ended
June 30, 2022. As of June 30, 2023, the Company had $41.21 million
in total assets, $25.83 million in total liabilities, and $15.38
million in total stockholders' equity.
Holmdel, New Jersey-based CohnReznick LLP, the Company's auditor
since 2010, issued a "going concern" qualification in its report
dated Sept. 27, 2023, citing that the Company has suffered
recurring losses from operations and negative cash flows from
operating activities for the years ended June 30, 2023 and 2022 and
has an accumulated deficit as of June 30, 2023. These matters,
among others, raise substantial doubt about its ability to continue
as a going concern.
IMAGINE SCHOOL: Moody's Cuts Rating on 2020A Education Bonds to Ba2
-------------------------------------------------------------------
Moody's Investors Service has downgraded to Ba2 from Ba1 the rating
for Capital Trust Agency FL's Educational Facilities Revenue Bonds
(Imagine School at Land O'Lakes Project, FL) Series 2020A bonds.
The outlook was changed to negative from rating under review. This
rating action concludes the review for downgrade initiated on
August 30, 2023.
RATINGS RATIONALE
The Ba2 rating reflects increased financial risk for Imagine Land
O'Lakes (LOL) school, given its issuance of $30 million unrated
parity debt in 2023. Debt proceeds will be utilized towards the
purchase and construction of a new school building - the West Pasco
(WP) school - a K-8 replication of the LOL's existing charter
model. The new debt has increased leveraged significantly and is
a material constraint to the school's already-narrow operating
margins and thin liquidity. With the 2023 issuance, spendable cash
to debt has been reduced to a very weak 3% from 9%, and days cash
on hand is a weak 73 days cash on hand, well below the Ba1 median
of 114 days. Management expects to enroll 700 students at the new
campus by fall of 2024, a considerable operating challenge.
Imagine has capitalized interest for the 2023 bonds through 2026,
which provides for some time to meet enrollment targets and
stabilize operations and reduces the immediate risk of covenant
violation. The supportive business model from parent company
Imagine Schools provides a solid foundation. Favorably, Florida
remains supportive of charter schools; Imagine benefits from both
state-funded capital support as well as a share of local tax
revenue. Nevertheless, funding is tied to enrollment levels, thus
failing to meet enrollment estimates would reduce this benefit to
funding.
RATING OUTLOOK
The negative outlook reflects considerable short-term challenges,
namely construction and ramp-up risks, the outcome of which will
become apparent in the next six months. Construction delays or
unmet initial enrollment commitments would detrimentally impact
LOL's financial position. Should LOL fail to meet current
projected targets for enrollment, coverage, and liquidity, there
will be negative impact to the school's current bond rating.
Conversely, successful construction and enrollment ramp-up that
align with financial estimates could stabilize the outlook.
However, a shift to a positive outlook is unlikely given the high
leverage and weak liquidity, unless these significantly improve to
match Moody's portfolio medians.
FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATING
- Successful completion of the construction and ramp up of the WP
school
- Enrollment above estimated levels
- Liquidity consistently above 90 days cash on hand
- Coverage consistently above 1.50x
FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATING
- Delays in construction or inability to fully ramp WP school in
line with estimates
- Failure to achieve projected enrollment levels at LOL or WP
- Deficit operations or decline in liquidity
- Coverage levels below 1.12x
- Increase in leverage
LEGAL SECURITY
The Imagine Schools Land O'Lakes bond structure remains unchanged,
but the West Pasco structure, though parity, has specific
provisions. Debt service is paid from loan payments between
Imagine-Pasco, LLC, the parent of both schools, and Capital Trust
Agency. School revenues, mainly from state payments per pupil under
the Florida Education Finance Program, flow monthly from the state
to Pasco County School District (Aa3). The district deducts 2% of
revenues for the first 250 students for administrative fees and
passes remaining revenues to the charter school within 10 days.
The Trustee has a security interest in all pledged revenues, and
debt is also secured by a mortgage on facilities acquired with bond
proceeds. Bond covenants include a three-pronged test for a debt
service reserve, a minimum debt service coverage ratio of 1.1:1, an
additional bonds test based on 1.25 historical and forecasted, and
a requirement of over 45 days' cash on hand. Failure to meet
covenants results in hiring a consultant to remedy shortfalls or
defaults. Non-payment defaults will require majority bondholder
approval to accelerate. Normal redemption provisions apply.
PROFILE
Imagine Pasco County LLC, affiliated with the nationally recognized
non-profit Imagine Schools, operates Imagine School at Land O'Lakes
and Imagine School at West Pasco. As of November 2023, the K-8 Land
O'Lakes School is at full capacity with 893 students and a 42%
waitlist, demonstrating high demand. The highly performing school
has replicated its model to form the West Pasco branch, set to open
in August 2024. The charters for Land O'Lakes and West Pasco expire
on June 30, 2028, and June 30, 2029, respectively.
METHODOLOGY
The principal methodology used in this rating was US Charter
Schools published in September 2016.
INVERSIONES LATIN AMERICA: Case Summary & 30 Top Unsec. Creditors
-----------------------------------------------------------------
Lead Debtor: Inversiones Latin America Power Ltda.
Cerro El Plomo 5680
Oficina 1202
Las Condes, Santiago, Chile
Business Description: The Debtors are a clean energy company,
headquartered in Santiago, Chile, that is
engaged in the electricity generation
business in northern Chile. The Debtors own
and operate two wind generation plants: (a)
the San Juan Project, a 193.2 MW facility
located in Freirina, Vallenar in the region
of Atacama and (b) the Totoral Project, a
46.0 MW facility located in Canela, in the
region of Coquimbo. The San Juan Project is
one of the largest, independent wind farm
projects in all of Chile and has been fully
operational since March 2017. The Totoral
Project has been fully operational since
January 2010.
Chapter 11 Petition Date: November 30, 2023
Court: United States Bankruptcy Court
District of New York
Three affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Inversiones Latin America Power Ltda. 23-11891
San Juan S.A. 23-11892
Norvind S.A. 23-11893
Judge: Hon. Judge John P. Mastando III
Debtors'
U.S. Legal
Advisor: Oscar N. Pinkas, Esq.
Brian E. Greer, Esq.
Leo Muchnik, Esq.
Sara A. Hoffman, Esq.
Jessica M. Wolfert, Esq.
GREENBERG TRAURIG, LLP
One Vanderbilt Avenue
New York, New York 10017
Tel: (212) 801-9200
Fax: (212) 801-6400
Email: PinkasO@gtlaw.com
GreerB@gtlaw.com
MuchnikL@gtlaw.com
HoffmanS@gtlaw.com
Jessica.Wolfert@gtlaw.com
Debtors'
Chilean Legal
Advisor: BARROS, SILVA, VARELA & VIGIL ABOGADOS
LIMITADA
Debtors'
Investment
Banker: LAZARD FRERES & CO. LLC
Debtors'
Noticing &
Claims
Agent: EPIQ CORPORATE RESTRUCTURING, LLC
Estimated Assets
(on a consolidated basis): $100 million to $500 million
Estimated Liabilities
(on a consolidated basis): $100 million to $500 million
The petitions were signed by Esteban Moraga as chief executive
officer.
A full-text copy of the Lead Debtor's petition is available for
free at PacerMonitor.com at:
https://www.pacermonitor.com/view/F7QX55Y/Inversiones_Latin_America_Power__nysbke-23-11891__0001.0.pdf?mcid=tGE4TAMA
Consolidated List of the Debtors' 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Enel Generacion Chile S.A. Trade Claim $9,140,666
Santa Rosa 76 Piso 17
Region Metropolitana
Santiago 8330099
Chile
Email: recaudacion.clientes@enel.com
2. Transelec S.A. Trade Claim $429,408
Avenida Orinoco 90 Piso 14
Las Condes
Santiago 7560970
Chile
Email: pagos@transelec.cl
3. Vestas Chile Turbinas Eolicas Trade Claim $291,331
Los Militares 4611
Las Condes
Region Metropolitana
Santiago Chile
Email: maofa@vestas.com
4. Claro Y Cia Trade Claim $130,482
Av Apoquindo 3721 Piso 14
Las Condes
Santiago Chile
Phone: +562 2367 3000
5. Agricola Konavle Lease $52,943
Carrizallillo Km. 114 S/N
Freirina
Chile
Email: juanprokurica@hotmail.com
6. Colbun SA Trade Claim $40,578
Av. Apoquindo 4775 Piso 11
Las Condes
Santiago 7580097
Chile
Phone: +56 2 2460 4000
Email: recepcion@colbun.cl
7. Gerardo Findel Westermeier Trade Claim $27,269
Av. Balaceda 595
La Serena
Coquimbo
Chile
8. Eloy Seguridad Eirl Trade Claim $20,010
Abel Armand 2156
Vallenar Atacama 1611677
Chile
Email: eloyseguridad@gmail.com
9. Sociedad Servicios Trade Claim $18,009
Tecnologicos Y
Telecomunicaciones Telconor Limitada
Av. Manuel Antonio Matta 150
Piso 2
Region Metropolitana
Santiago 1700000
Chile
Email: csalinas@telconor.cl
10. Diego De Almagro Solar SPA Trade Claim $16,385
Av. Cerro El Plomo 5420
Oficina 402 Las Condes
Region Metropolitana
Santiago 7560742
Chile
Phone: 226048111
Email: c.meneses@s-energy.com
11. Sociedad De Montajes Trade Claim $16,020
Electricos RCA Ltda
Avenida La Cantera N 1998
Region DE
Coquimbo 1780000
Chile
Phone: (51) 2278848
Email: contacto@rcaelec.cl
12. Estudios Electricos Chile S.A. Trade Claim $12,125
Manquehue Norte 160, OF, 41-1
Las Condes, Santiago
Chile
PHone: 232 468 750
Email: info@estudios-electricos.com
13. Fundacion Huella Local Trade Claim $11,679
Puma 1180, 5420189
Recoleta
Region Metropolitana
Chile
14. Chester Solar IV SPA Trade Claim $10,695
Av. Apoquindo 6410
of 704
Region Metropolitana
Las Condes 7560903
Chile
Email: c.meneses@s-energycom;
a.hachun@s-energy.com;
15. Soc De Inversiones Las Vegas Trade Claim $7,409
Avda FCO De Aguirre 0225
La Serena, Coquimbo
Chile
Email: marenas@ilv.cl
16. La Acacia SPA Trade Claim $6,811
Av. Apoquindo 6410
of 704
Region Metropolitana
Las Condes 7560903
Chile
Email: intercambio@dte.nubox.com
a.hachun-s-energy.com;
c.meneses@s-energy.com
17. Seguridad Y Salud Sur Ltda Trade Claim $5,731
Avda. Presidente Ibanez 150
Puerto Montt, Los Lagos
Chile
Email: segurisumedical@gmail.com
18. Enel Distribucion Chile S.A. Trade Claim $5,038
Av. Sta. Rosa 76
Piso 17
Region Metropolitana
Santiago 8330099 Chile
Email: dte.grupoenelchile@enel.com;
gerardo.pinto@enel.com;
jaime.garcia@enel.com
jose.matuska@enel.com
19. Cinergia Chile SPA Trade Claim $4,552
Marco Bramante
Cerro El Plomo N 5630 Piso 9
Las Condes, Santiago
Chile
Phone: (56 9) 8294 9156
Email: kameone.emp@gmail.com
csaavedra@cinergia.cl;
portaldepagos@igx.cl
20. CIA Barrick Chile Generacion Trade Claim $4,218
Ltda
Chile Avda. Ricardo Lyon 222
Piso 8
Providencia, Santiago
7500000
Chile
Email: cvillalobost@barrick.com
21. Jorpa Ingenieria SA Trade Claim $3,884
Dresden 4672
Santiago 8930009
Chile
Email: cdysli@jorpa.cl
22. PV Salvador SA Trade Claim $3,835
Avenida La Dehesa 181 208
Las Condes, Santiago 7710112
Chile
Email: disler@etrion.com
23. Hidrolectrica La Confluencia Trade Claim $3,806
Chacabuco 792 LC 21 Edificio
Alto San Fe
San Fernando, Santiago, VI Region
Del Libertador General
Bernardo La Rufina
San Fernando, Ohiggins Chile
Email: confluencia_dte@tenergia.cl
24. Barros Y Errazuriz Trade Claim $3,418
Abogados Ltda.
Isidora Goyenechea 2939
Las Condes, Santiago
Chile
Email: cllanes@bye.cl
25. Hidroelectrica La Higuera Trade Claim $2,346
S.A.
Isidora Goyenechea 3520
7550071 Las Condes
Region Metropolitana
Santiago, Chile
Email: higuera_dte@tenergia.cl
26. Hidrosantiago SPA Trade Claim $2,232
Av. Providencia 1208, Oficina
1603
Santiago 7500571
Chile
Phone: 966974041
Email: aandrades@hidrosantiago.cl
27. Esteyco Chile SPA Trade Claim $2,154
Badajoz 130, 7560908
Las Condes, Region
Las Condes, Santiago 7560908
Chile
Email: carlosf@estyco.com
28. Central Colmito S.A. Trade Claim $2,058
Victoria Salinas
Cerro El Plomo 5680
Piso 15
Oficina 1501
Las Condes, Santiago Chile
Phone: 228207113
Email: facturacion@icpower.cl;
windte_dte@custodium.com;
javier.pujol@inkiaenergy.com;
marcia.galaz@inkiaenergy.com
29. Corporacion Nacional Trade Claim $2,048
Del Cobre Chile
Francisco Danitz Miller
Huerfranos 1270
Santiago, Chile
Phone: 223922398
Email: codelcorecepcion@custodium.com
cvaldo27@codelco.cl;
jcardo14@codelco.cl
30. Nornerto Elgueta Alucena Trade Claim $1,926
La Manga 2
Villahermosa 86068
Mexico
Phone: 94619379
Email: nelgueta06@gmail.com
INVESTMENT PROPERTIES: Hires O'Connor Playdon Guben as Counsel
--------------------------------------------------------------
Investment Properties Corp. seeks approval from the U.S. Bankruptcy
Court for the District of Hawaii to employ the law firm of O'Connor
Playdon Guben & Inouye LLP as its general counsel.
The Debtor requires counsel to advise and represent them in this
Chapter 11 case, including the preparation of their Schedules of
Assets and Liabilities and Statements of Financial Affairs, prepare
the Monthly Operating Reports and a Plan of Reorganization.
The firm will be paid as follows:
Jerrold K. Guben $400 per hour
Associates $300 per hour
Jerrold K. Guben, Esq., partner of the law firm of O'Connor Playdon
& Guben LLP, assured the Court that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code and does not represent any interest adverse to the Debtor and
its estates.
The firm can be reached at:
Jerrold K. Guben, Esq.
Jeffery S. Flores, Esq.
O'Connor Playdon & Guben LLP
Bishop Street, Suite 2400
Honolulu, HI 96813
Telephone: (808) 524-8350
Facsimile: (808) 531-8628
E-mail: jkg@opglaw.com
jsf@opglaw.com
About Investment Properties Corp.
Investment Properties Corp. sought protection for relief under
Chapter 11 of the Bankruptcy Code (Bankr. D. Hawaii Case No.
23-00934) on November 17, 2023, listing $500,001 to $1 million in
both assets and liabilities.
Judge Robert J Faris oversees the case.
Jerrold K. Guben, Esq. at O'Connor Playdon Guben & Inouye LLP
represents the Debtor as counsel.
IRONNET INC: $10MM DIP Loan from ITC Global OK'd
------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware authorized
IronNet, Inc. and affiliates to continue using cash collateral and
obtain up to an additional $1.5 million in postpetition financing
according to a third interim order.
The Debtors obtained postpetition financing and other financial
accommodations under a debtor-in-possession financing, comprising,
among other things, a superpriority senior secured facility which
consists of a multi-draw credit loan facility in an aggregate
principal amount of up to $10 million.
The DIP Loan is available to the Debtors:
-- upon entry of the Final Order, in a roll up of the
approximately $1.5 million in outstanding Bridge Facility
Obligations in accordance with the terms substantially set forth in
the Superpriority Secured Debtor-in-Possession Credit Facility Term
Sheet attached to the First Interim Order;
-- up to $3.0 million in accordance with the terms
substantially set forth in the DIP Term Sheet, as modified by the
First Interim Order, upon entry of the First Interim Order;
-- up to an additional $1.5 million upon entry of the second
interim order;
-- up to an additional $1.5 million upon entry of the third
interim order; and
-- the remaining principal amount available under the DIP
Facility in accordance with the terms of the DIP Documents upon
entry of the Final Order.
The DIP Facility will be funded by ITC Global Advisers, LLC and an
affiliate of C5 Space Data LP.
The Debtors are required to comply with these milestones:
(a) No later than October 11, 2023, the Petition Date must
have occurred;
(b) No later than the date that is three calendar days
following the Petition Date (or if such third day is not a business
day, the first succeeding business day thereafter), the Bankruptcy
Court must have entered an interim order approving the DIP
Facility;
(c) No later than the date that is 15 business days following
the Petition Date (or if such third day is not a business day, the
first succeeding business day thereafter), the Debtors must have
(i) filed a motion, in form and substance acceptable to the DIP
Facility Agent, requesting entry of an order approving procedures
for the post-petition marketing of the Debtors' assets or
reorganized equity to determine if a higher and better offer can be
obtained to "top" the proposed treatment under an Acceptable Plan;
(d) No later than the date that is 35 calendar days following
the Petition Date, the Bankruptcy Court must have entered the Sale
Procedure Order and a final order approving the DIP Facility; and
(e) No later than the date that is 65 days following the entry
of the Interim Order, the Debtors must have conducted an auction
for the Sale (if necessary) and selected the successful bidder
and/or identified an alternate plan sponsor providing higher and
better treatment and consistent with the Debtors fiduciary duties;
(f) No later than the date that is 90 days following the entry
of the Interim Order, the Bankruptcy Court must have entered an
order approving the Sale or order confirming the Plan of
Reorganization; and
(g) On or before the date that is 105 days after the Petition
Date, provided that the Bankruptcy Court has waived the stay
imposed by Bankruptcy Rule 6004(h), or such later date to which the
DIP Facility Agent consents in writing in its sole discretion, the
Sale will be closed.
The DIP facility is due and payable through the earliest of:
(a) The date which is 180 days after the Petition Date, unless
extended by agreement of the DIP Facility Agent;
(b) The effective date of any chapter 11 plan confirmed in any
of the Chapter 11 Cases;
(c) The entry of an order for the dismissal or conversion to
chapter 7 of any of the Chapter 11 Cases;
(d) The closing of a sale of all or substantially all assets
or equity of the Loan Parties; or
(e) The date of any Event of Default under the DIP Credit
Agreement or any of the DIP Documents and the election of the DIP
Facility Agent to terminate the DIP Facility commitments following
such Event of Default and the expiration of all applicable notice
and cure periods.
On December 2022, April 2023, May 2023, and August 2023, IRNT
issued and sold senior secured promissory notes in an aggregate
principal amount of $8.475 million to a total of eight lenders,
which included seven lenders who are either Company directors or
entities affiliated with Company directors.
As of the Petition Date, IRNT is party to these senior secured
convertible promissory notes issued to C5 Space Data LP or
affiliates of C5:
i. The Amended and Restated Senior Secured Convertible
Promissory Note, dated as of January 11, 2023, issued by IRNT, in
favor of C5 Space Data LP in the aggregate principal amount of $2
million, which amends and restates the Senior Secured Promissory,
dated as of December 30, 2022, issued by the Company in favor of
C5;
ii. The Senior Secured Convertible Promissory Note, dated as
of January 12, 2023, issued by IRNT in favor of C5 in the aggregate
principal amount of $3 million;
iii. The Senior Secured Convertible Promissory Note, dated as
of February 8, 2023, issued by IRNT in favor of C5 Cyber Partners
II SCSP RAIF in the aggregate principal amount of $4 million;
iv. The Senior Secured Convertible Promissory Note, dated as
of February 27, 2023, issued by IRNT in favor of C5 Transatlantic
Investors LP in the aggregate principal amount of $2.250 million;
v. The Senior Secured Convertible Promissory Note, dated as
of April 13, 2023, issued by IRNT in favor of Ferrous Investors LP
in the aggregate principal amount of $595,000;
vi. The Senior Secured Convertible Promissory Note, dated as
of May 2, 2023, issued by INRT in favor of C5 Ferrous in the
aggregate principal amount of $850,000;
vii. The Senior Secured Convertible Promissory Note, dated as
of May 8, 2023, issued by IRNT in favor of C5 Ferrous in the
aggregate principal amount of $400,000;
viii. The Senior Secured Convertible Promissory Note, dated as
of July 11, 2023, issued by IRNT in favor of C5 Ferrous in the
aggregate principal amount of $1.750 million; and
ix. The Senior Secured Promissory Note, dated as of September
22, 2023, issued by IRNT in favor of C5 Ferrous in the aggregate
principal amount of $300,000.
As of the Petition Date, approximately $25.3 million of
indebtedness under the Prepetition Secured Notes was outstanding,
which amount is comprised of an amount not less than $23.8 million
in principal amount and accrued and unpaid interest, premiums, and
fees in the amount of not less than $1.5 million.
Pursuant to the DIP Term Sheet and the applicable documentation,
Ferrous Investors LP, an affiliate of C5, as bridge lender,
advanced $1.244 million to the Debtors on October 10, 2023 and
$256,000 to the Debtors on October 11, 2023 to allow for the
orderly transition of the Debtors into these Chapter 11 cases.
The Debtors require the DIP Facility and use of cash collateral to
(i) permit the continuation of their businesses and maximize and
preserve their going concern value, (ii) satisfy payroll
obligations and other working capital and general corporate
purposes of the Debtors consistent with the terms set forth in the
DIP Documents and the Budget, (iii) provide adequate protection to
the Prepetition Secured Creditors, (iv) pay fees and expenses
related to the DIP Documents and these chapter 11 cases, and (v)
for such other purposes as set forth in, or otherwise permitted by,
the DIP Documents.
As adequate protection, the Prepetition Secured Creditors are
granted valid, binding, enforceable and perfected replacement liens
on and security interests in the DIP Collateral.
To the extent of Diminution, the Prepetition Secured Creditors are
further granted an allowed superpriority administrative claim,
pursuant to 11 U.S.C. section 507(b), with priority over all
administrative expense claims and priority and other unsecured
claims against the Debtors or their estates.
These events constitute an "Event of Default":
a. Conversion of any of these chapter 11 cases to a case
under Chapter 7 of the Bankruptcy Code;
b. Dismissal of any of these chapter 11 cases;
c. Appointment of a trustee under section 1104 of the
Bankruptcy Code;
d. Appointment of an examiner with expanded or enlarged
powers under 11 U.S.C. section 1106(b);
e. Failure by the Debtors to make any payment under the DIP
Facility when due;
f. A Budget variance will exceed the Variance Limit;
g. Failure by the Debtors to comply with its obligations
thereunder or under the DIP Documents; and
h. Failure to comply with a Milestone.
A final hearing on the matter is set for December 11, 2023 at 11
a.m.
A copy of the order is available at https://urlcurt.com/u?l=NCucTT
from PacerMontor.com.
About IronNet
Founded in 2014 and headquartered in McLean, Va., IronNet, Inc.
(NYSE: IRNT) -- https://www.ironnet.com/ -- is a global
cybersecurity company that is transforming how organizations secure
their networks by delivering the first-ever collective defense
platform operating at scale.
Employing a number of former NSA cybersecurity operators with
offensive and defensive cyber experience, IronNet integrates deep
tradecraft knowledge into its industry-leading products to solve
the most challenging cyber problems facing the world today.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Case No. 23-11710) on October 12,
2023. In the petition signed by Cameron Pforr, president and chief
financial officer, IronNet, Inc. disclosed $77,389 in assets and
$33,833,108 in liabilities. Debtor IronNet Cybersecurity, Inc.
listed $10 million to $50 million in estimated assets and $50
million to $100 million in estimated liabilities.
Judge Brendan Linehan Shannon oversees the cases.
The Debtors tapped Young Conaway Stargatt & Taylor, LLP as
bankruptcy counsel, Arnold & Porter Kaye Scholer LLP as general
corporate counsel, and Stretto, Inc. as claims, noticing, and
solicitation agent.
Paul, Weiss, Rifkind, Wharton & Garrison LLP represents the DIP
lenders as legal counsel.
ITALIAN GRILLE: Seeks Approval to Hire Timothy Eplion as Manager
----------------------------------------------------------------
Italian Grille and Deli, LLC seeks approval from the U.S.
Bankruptcy Court for the Southern District of West Virginia to hire
Timothy Eplion as its manager.
Mr. Eplion is the sole owner of the Debtor. He will be involved in
the reorganization process and work closely with the Debtor's
counsel.
Mr. Eplion is seeking compensation at the rate of $5,000 per
month.
Mr. Eplion can be reached at:
Timothy Eplion
Italian Grille and Deli, LLC
160 Plantation Road
Fraziers Bottom, WV 25082
Phone: (304) 757-0333
About Italian Grille and Deli
Italian Grille and Deli, LLC sought protection for relief under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. W.Va. Case No.
23-30290) on November 15, 2023, listing up to $50,000 in both
assets and liabilities.
Joseph W. Caldwell, Esq. at Caldwell & Riffee represents the Debtor
as counsel.
J.E.H. PROPERTIES: Amends Merchants Secured Claim Pay Details
-------------------------------------------------------------
J.E.H. Properties I, LLC, and J.E.H. Properties II, LLC, submitted
a Second Amended Disclosure Statement for First Amended Chapter 11
Plan of Reorganization dated November 21, 2023.
In March of 2018, JEH I purchased the real property located at 4
County Route 26, Climax, New York 12042 (SBLs: 55.00-3-8, 55.00-4
24) (the "Property I"). At the same time that JEH I purchased
Property I, JEH II purchased the adjacent real property located at
SBLs: 55.00-3-9 and 55.00-3-7 (the "Property II", together with
Property I, the "Properties").
Because the Debtors were not receiving rental income from the
Restaurant Premises, the Debtors fell behind on their mortgage and
property tax payments. A tax foreclosure was commenced against the
Properties. The Debtors require the protection of the Bankruptcy
Court in order to help sustain and protect their only assets until
such time as a restructuring can be accomplished.
Class 2 consists of the Allowed Secured Claim of the Merchants
against Property I. The Holder of the Allowed Secured Claim shall
receive payment in full, in Cash, with interest at the rate of 5%,
as follows: twelve equal installments of $29,850.35, starting on
the effective date, and continuing monthly thereafter until paid in
full. Until such time as the Class 2 Claim is paid in full, the
holder thereof shall retain its lien on Property I.
There shall be no prepayment or other similar penalty upon any
partial or full pre-payment of the Allowed Class 2 Claim. The
Allowed Class 2 Claim is impaired under this Plan and holders of
such Claims shall be entitled to vote to accept or reject the Plan.
The Debtors estimate Class 2 Claims to total approximately
$335,000.
The Plan shall be funded from the following sources: (a) $45,002.64
on the Effective Date, by the Debtors' Affiliate, which shall be
used to fund the Plan Distribution Fund, and (b) the Debtors' Cash
on hand and operating revenues going forward, if any, and shall be
distributed by the Debtors.
A full-text copy of the Second Amended Disclosure Statement dated
November 21, 2023 is available at https://urlcurt.com/u?l=wOD3u9
from PacerMonitor.com at no charge.
Attorneys for the Debtors:
Dawn Kirby, Esq.
Jessica M. Hill, Esq.
KIRBY AISNER & CURLEY, LLP
700 Post Road, Suite 237
Scarsdale, NY 10583
Tel: (914) 401-9500
E-mail: dkirby@kacllp.com
jhill@kacllp.com
About J.E.H. Properties
J.E.H. Properties I, LLC, and J.E.H. Properties II, LLC, filed
their voluntary petitions for relief under Chapter 11 of the
Bankruptcy Code (Bankr. S.D.N.Y. Case Nos. 22-35449 and 22-35450)
on July 20, 2022. At the time of the filing, the Debtors listed as
much as $1 million in both assets and liabilities.
Judge Cecelia G. Morris oversees the case.
Dawn Kirby, Esq., at Kirby Aisner & Curley, LLP, is serving as the
Debtors' counsel.
JSMITH CIVIL: Bankruptcy Administrator Unable to Appoint Committee
------------------------------------------------------------------
The U.S. Bankruptcy Administrator for the Eastern District of North
Carolina disclosed in a filing that no official committee of
unsecured creditors has been appointed in the Chapter 11 case of
JSmith Civil, LLC.
About JSmith Civil
JSmith Civil, LLC, a contractor in Goldsboro, N.C., filed Chapter
11 petition (Bankr. E.D.N.C. Case No. 23-02734) on Sept. 19, 2023,
with $10 million to $50 million in both assets and liabilities.
Jeremy Smith, president of JSmith Civil, signed the petition.
Judge Joseph N. Callaway oversees the case.
The Debtor is represented by Joseph Zachary Frost, Esq. at
Buckmiller, Boyette & Frost, PLLC.
KC TRUCKING: Seeks to Hire Gold Weems Bruser as Bankruptcy Counsel
------------------------------------------------------------------
KC Trucking & Equipment, LLC and its affiliates seek approval from
the U.S. Bankruptcy Court for the Western District of Louisiana to
employ Gold Weems Bruser Sues & Rundell, APLC to handle its Chapter
11 case.
The firm will be paid at these rates:
Shareholders $300 to $435 per hour
Associates $265 to $310 per hour
Paralegals $90 per hour
In addition, the firm will be reimbursed for out-of-pocket expenses
incurred.
The retainer fee is $20,000.
Bradley Drell, Esq., a partner at Gold Weems Bruser Sues & Rundell,
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:
Bradley L. Drell, Esq.
Gold Weems Bruser Sues & Rundell, APLC
P.O. Box 6118
Alexandria, LA 71307-6118
Tel: (318) 445-6471
Fax: (318) 445-6476
Email: bdrell@goldweems.com
About KC Trucking & Equipment
KC Trucking & Equipment, LLC, 5-KCT Holdings, LLC and 5-KCT Realty,
LLC filed its voluntary petition for relief under Chapter 11 of the
Bankrutpcy Code (Bankr. W.D. La. Lead Case No. 23-20507) on
November 14, 2023. The petitions were signed by Kenneth Crooks as
owner.
At the time of filing, KC Trucking estimated $3,481,917 in assets
and $2,881,888 in liabilities. 5-KCT Holdings disclosed $1,706,175
in liabilities. 5-KCT Realty estimated $880,000 in assets and
$1,706,175 in liabilities.
Judge John W. Kolwe presides over the cases.
Conner L. Dillon, Esq. at Gold, Weems, Bruser, Sues & Rundell
represents the Debtors as counsel.
KOFC LTD: Seeks to Hire Villa & White as Bankruptcy Counsel
-----------------------------------------------------------
KOFC, LTD seeks approval from the U.S. Bankruptcy Court for the
Western District of Texas to hire Villa & White LLP as its
counsel.
The Debtor requires legal counsel to:
(a) assist and advise the Debtor relative to its operations
the overall administration of its Chapter 11 case;
(b) represent the Debtor at hearings and communicate with its
creditors regarding the matters heard and the issues raised, as
well as the decisions and considerations of the court;
(c) review and analyze operating reports, schedules,
statements of affairs, and other documents;
(d) assist the Debtor in preparing legal papers;
(e) coordinate the receipt and dissemination of information
prepared by and received from the Debtor and bankruptcy
professionals;
(f) confer with the professionals as may be selected and
employed by any official committee;
(g) assist the Debtor in its negotiations with creditors or
court-appointed representatives or interested third parties
concerning the terms, conditions, and import of a plan of
reorganization and disclosure statement to be filed by the Debtor;
(h) assist the Debtor with such services as may contribute or
are related to the confirmation of a plan of reorganization;
(i) assist the Debtor in its discussions and negotiations with
others regarding the terms, conditions, and security for credit;
(j) conduct examination of witnesses; and
(k) assist the Debtor generally in performing other services.
Morris White, III, Esq., the firm's attorney who will be handling
the case, charges an hourly fee of $400.
As disclosed in court filings, Villa & White does not hold an
interest adverse to the Debtor's estate.
Villa & White can be reached at:
Morris E. White III, Esq.
VILLA & WHITE, LLP
1100 NW Loop 410 #802
San Antonio, TX 78213
Telephone: (210) 225-4500
Facsimile: (210) 212-4649
Email: treywhite@villawhite.com
About KOFC LTD
KOFC, LTD filed Chapter 11 petition (Bankr. W.D. Texas Case No.
23-51414) on Oct. 18, 2023, with $50,001 to $100,000 in assets and
$500,001 to $1 million in liabilities.
Judge Michael M. Parker oversees the case.
Morris Eugene White, III, Esq., at Villa & White, LLP represents
the Debtor as legal counsel.
LBU FRANCHISES: Seeks Cash Collateral Access, DIP Loan from Fox
---------------------------------------------------------------
LBU Franchises Corporation d/b/a Light Bulbs Unlimited asks the
U.S. Bankruptcy Court for the Southern District of Texas, Houston
Division, for authority to use cash collateral and obtain
post-petition financing.
The Debtor entered bankruptcy with significant obligations due on
December 1, 2023, including rent, insurance premiums, and employee
obligations. To fund operations and the Chapter 11 case, the Debtor
sought debtor-in-possession financing from various financial
institutions and lenders. Ultimately, it sought post-petition
financing pursuant to a senior secured super-priority
debtor-in-possession term loan in the principal amount of $50,000
from Fox Capital Group, LLC, one of the prepetition creditors.
The DIP loan is due and payable on December 1, 2024, unless there
is a payment default, or the court does not enter a final order.
The DIP Lender will receive first priority senior priming liens on
all the Debtor's "Accounts," "Deposit Accounts," and "Inventory"
upon entry of the Interim Order. The DIP Lender will receive first
priority senior and, if necessary, priming liens on all the
proceeds of Debtor's and the Debtor's estate's causes of action
against any party upon entry of the Final Order.
The DIP Lender will also receive junior liens on the Debtor's lease
for the Property.
LBU has two assets of substantial value:
1) its inventory, which LBU values at approximately $60,000 on
its balance sheet; and
2) a lease of real property commonly known as 1203 Westheimer
Road, Houston, Texas 77006, which LBU values at $118,800 on its
balance sheet.
LBU's property is currently subject to liens held by Harris County,
Texas, the Internal Revenue Services, the United States Small
Business Administration, and, potentially, the MCAs.
The liens held by Harris County and the IRS appears to be perfected
in all the Debtor's property. The liens held by the SBA are
perfected only in the Debtor's personal property. The liens
potentially held by the MCAs would only be perfected in the
Debtor's accounts receivable.
LBU believes the amount of the claim secured by the liens are as
follows:
i. Harris County -- $9,307;
ii. IRS -- $114,847;
iii. SBA -- $497,339.
LBU believes the amounts claimed by the MCAs are around $200,000.
Harris County and IRS will retain their first-position liens on the
Debtor's lease of the Property. Additionally, they will:
(i) retain their liens, and receive adequate protection liens,
on all Debtor's personal property other than the Priority DIP
Collateral; and
(ii) will receive replacement second-position adequate
protection liens on the Priority DIP Collateral.
The SBA will receive adequate protection payments of $2,332 per
month, as well as replacement liens in the Non-DIP Collateral and
third-position adequate protection liens on the Priority DIP
Collateral.
The MCAs will receive adequate protection in the form of
replacement liens in the Non-DIP Collateral and fourth-position
adequate protection liens on the Priority DIP Collateral.
A copy of the motion is available at https://urlcurt.com/u?l=WCZvXv
from PacerMonitor.com.
About LBU Franchises Corporation
LBU Franchises Corporation sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 23-34586) on
November 22, 2023. In the petition signed by David Bekker,
president, the Debtor disclosed up to $500,000 in assets and up to
$1 million in liabilities.
Broocks McClure Wilson, Esq., at Kean Miller LLP, represents the
Debtor as legal counsel.
LIFOD HOME: No Patient Care Complaints, 1st PCO Report Says
-----------------------------------------------------------
Joseph Tomaino, the duly appointed patient care ombudsman, filed
with the U.S. Bankruptcy Court for the District of Massachusetts a
first report regarding the quality of patient care provided by
Lifod Home Health Care LLC's home health care facility.
Lifod reported that prior to COVID, the census of patient served
averaged 160. This declined during the pandemic and just prior to
filing for bankruptcy the census was around 80. Lifod reported that
since it did not have the cash flow to support payroll, it
suspended clinical operations in June of 2023 and transitioned the
patients to other agencies for care.
The PCO stated that there are no clinical staff or patients to be
interviewed as there are no clinical activities underway at this
time.
The PCO has received no calls or emails with patient or employee
complaints.
A copy of the PCO report is available for free at
https://urlcurt.com/u?l=9EfVpI from PacerMonitor.com.
The ombudsman may be reached at:
Joseph J. Tomaino
Grassi Healthcare Advisors LLC
750 Third Ave
New York, NY 10017
(212) 223-5020
Email: jtomaino@grassihealthcareadvisors.com
About Lifod Home
Lifod Home Health Care, LLC, a provider of home health care
services, filed Chapter 11 petition (Bankr. D. Mass. Case No.
23-40476) on June 13, 2023, with $100,001 to $500,000 in assets.
Judge Elizabeth D. Katz oversees the case.
S. James Boumil, Esq., at Boumil Law Offices represents the Debtor
as bankruptcy counsel.
Joseph J. Tomaino is the patient care ombudsman appointed in the
Debtor's case.
LOYALTY EXPRESS: Hires Christian & Small as Bankruptcy Counsel
--------------------------------------------------------------
Loyalty Express, LLC DBA Volly seeks approval from the U.S.
Bankruptcy Court for the Northern District of Alabama to employ
Christian & Small, LLP as its legal counsel.
The firm's services include:
(a) consultation with the Debtor's creditors, secured lenders,
and the Sub-Chapter V trustee regarding the administration of this
Chapter 11 case;
(b) investigation of the extent and validity of liens and
participate in and review any proposed asset sales, any asset
dispositions, financing arrangements and cash collateral
stipulations or proceedings;
(c) assistance in any manner relevant to reviewing and
determining the Debtor's rights and obligations under leases and
other executory contracts;
(d) investigation of the acts, conduct, assets, liabilities
and financial condition of the Debtor, its operations and the
desirability of the continuance of any portion of those operations,
and any other matters relevant to this case;
(e) participation in the negotiation, formulation and drafting
of a plan of reorganization or liquidation;
(f) assistance in the appointment of a trustee or examiner;
(g) provision of legal advice regarding the Debtor's powers
and duties under the Bankruptcy Code and the Bankruptcy Rules;
(h) evaluation of claims and on any litigation matters; and
(i) provision of such other services to the Debtor as may be
necessary in this case.
The hourly rates of the firm's counsel and staff are as follows:
Partners $620 - $595
Associates $395
Paralegals $195
In addition, the firm will seek reimbursement for expenses
incurred.
Daniel Sparks, Esq., an attorney at Christian & Small, 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:
Daniel D. Sparks, Esq.
Bill D. Bensinger, Esq.
Christian & Small LLP
1800 Financial Center
505 North 20th Street
Birmingham, AL 35203
Tel: (205) 250-6626
Fax: (205) 328-7234
Email: ddsparks@csattorneys.com
bdbensinger@csattorneys.com
About Loyalty Express, LLC
Volly is a provider of technology and marketing services for banks,
credit unions, and mortgage companies.
Loyalty Express, LLC DBA Volly filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ala.
Case No. 23-013147) on November, 17, 2023. The petition was signed
by Katharine Loveland as CEO. At the time of filing, the Debtor
estimated $10 million to $50 million in assets and $10 million to
$10 million in liabilities.
Judge D. Sims Crawford presides over the case.
Daniel D. Sparks, Esq. at CHRISTIAN & SMALL LLP represents the
Debtor as counsel.
MACHINE TOOL: Seeks to Hire Norman J. Gallivan as Auctioneer
------------------------------------------------------------
Machine Tool Service, Inc. seeks approval from the U.S. Bankruptcy
Court for the Southern District of Indiana to employ Norman J.
Gallivan, Inc. d/b/a, Gallivan Auctioneers and Appraisers.
The firm will provide services including photographing, cataloging,
organizing, and advertising the Debtor's personal property for sale
and presenting the sale as an online auction over a period of five
days.
Gallivan will charge an 8 percent seller's commission.
Matt Gallivan, operations manager of Norman J. Gallivan, 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:
Matt Gallivan
Norman J. Gallivan, Inc.
7230 Arbuckle Commons, Suite 181
Brownsburg, IN 46112
Phone: (317) 227-3720
Email: matt@njgallivan.com
About Machine Tool Service
Machine Tool Service, Inc. filed Chapter 11 petition (Bankr. S.D.
Ind. Case No. 23-80337) on Aug. 24, 2023, with $500,001 to $1
million in both assets and liabilities.
Judge Jeffrey J. Graham oversees the case.
Richard W. Lorenz, Esq., at Hickam & Lorenz, P.C. represents the
Debtor as legal counsel.
MACHINE TOOL: Taps Whitney Gurman-Roberts as Real Estate Broker
---------------------------------------------------------------
Machine Tool Service, Inc. seeks approval from the U.S. Bankruptcy
Court for the Southern District of Indiana to hire Whitney
Gurman-Roberts, director at 92c Partners, as its real estate
broker.
Ms. Gurman-Roberts will market and sell the Debtor's building and
real estate.
Ms. Gurman-Roberts assured the court that she has no connection
with the debtor, creditors, any other interested party, their
respective attorneys and accountants, the United States Trustee or
any person employed in the Office of the United States Trustee.
The broker can be reached at:
Whitney Gurman-Roberts
92c Partners
3950 Priority Way South Drive, Suite 112
Indianapolis, IN 46240
Phone: (317) 914-7978
Email: whitney@92cpartners.com
About Machine Tool Service
Machine Tool Service, Inc. filed Chapter 11 petition (Bankr. S.D.
Ind. Case No. 23-80337) on Aug. 24, 2023, with $500,001 to $1
million in both assets and liabilities.
Judge Jeffrey J. Graham oversees the case.
Richard W. Lorenz, Esq., at Hickam & Lorenz, P.C. represents the
Debtor as legal counsel.
MARINE WHOLESALE: Seeks Cash Collateral, $305,000 DIP Loan
----------------------------------------------------------
Marine Wholesale and Warehouse, Co. asks the U.S. Bankruptcy Court
for the Central District of California, Los Angeles Division, for
authority to use cash collateral and obtain post-petition
financing.
On November 28, 2023, the Debtor received an offer for a $305,000
loan, which consisted of a Secured Promissory Note and Security
Agreement from Marvin Lieblein.
The Debtor will have the right to request advances from the Lender
up to the principal amount of $305,000. The unpaid principal
balance will accrue interest at the rate of 12% per annum. There
are no monthly payments; the entire unpaid principal balance and
all unpaid accrued interest will be due and payable at maturity, on
March 20, 2024.
The Debtor has a long-standing business relationship with the
National Science Foundation and receives specialized purchase
orders from them. However, the Debtor currently lacks the funds to
fulfill these purchase orders and continue its normal operations.
Therefore, the Debtor is seeking approval for post-petition
financing and a superior lien on specific accounts receivable to
secure the loan. This financing is in the best interests of all
creditors as it will increase the value of the Debtor's estate. The
Debtor requests the Court's authorization for the loan, the
granting of the superior lien, the use of cash collateral, and any
other relief deemed appropriate.
The Debtor acquired two properties in San Pedro and Wilmington,
California, and transformed them into bonded warehouses. These
warehouses are authorized by the Alcohol and Tobacco Tax and Trade
Bureau to store untaxed cigarettes and tobacco products. The
products are then loaded onto various types of ships that sail to
international waters, effectively exporting them and exempting them
from U.S. excise tax laws. The United States Customs and Border
Protection issues permits for the withdrawal of supplies from the
warehouse for loading onto vessels.
The primary reason for filing the bankruptcy was due to the actions
of the TTB, its assertion of liability against the Debtor, and its
collection efforts to collect this asserted liability.
On June 28, 2020, the Debtor obtained an Economic Injury Disaster
Loan from the United States Small Business Administration. The SBA
filed a UCC Financing Statement with the Secretary of State for the
Slate of California on June 28, 2020. Pursuant to the SBA Financing
Statement, the SBA has a lien on all of Debtor's tangible and
intangible property. As of the Petition Date, the amount due to the
SBA for the SBA Loan was approximately $146,456.
Pursuant to the assessments and Tax Lien, the TTB asserts that it
has a secured claim against the Debtor in the amount of $25.225
million. As to the Debtor's personal property, the TTB Claim is
second in priority to the SBA Claim because the TTB did not file
its Tax Lien until September 2, 2021. TTB's entire claim against
the Debtor arises from a single contested allegation that Debtor's
former owner, the late Robert L. Hartry, failed timely to report to
TTB a transfer of shares in Debtor that occurred in December
15,2012, allegedly in violation of TTB's regulations.
The Debtor's unsecured claims total approximately $2.280 million.
As adequate protection of the SBA's security interest. The Debtor
will continue to pay SBA adequate protection payments, in cash, in
the amount of $731 each month, which have commenced on August 1,
2022, and on the first business day of each month thereafter. This
amount is equal to the amount owing under the SBA Loan Documents,
which includes both principal and interest payments. This further
protects the SBA and is sufficient to show that SBA will be paid
its secured claim. Further, consistent with the Current Cash
Collateral Order, the Debtor will offer a post-petition replacement
lien on all of the Debtor's post-petition personal property, other
than recoveries from avoiding power actions, which liens will have
the same validity, priority, and extent as the prepetition lien, in
further adequate protection of the SBA's interests, subject to the
Debtor's ability to use such collateral upon request and order of
the Court.
As adequate protection for the TTB, consistent with the Current
Cash Collateral Order, the Debtor proposes a post-petition
replacement lien on all of Debtor's post-petition personal
property, other than recoveries from avoiding power actions, which
liens will have the same validity, priority, and extent as the
prepetition lien, in further adequate protection of the TTB's
interests, subject to the Debtor's ability to use such collateral
upon request and order of the Court. Further, due to the actions of
the TTB, the Debtor believes that the TTB Claim is significantly
overstated, should be treated as unsecured, and/or should be
reduced to $0.00. Further, the TTB is already holding funds from
the Levy.
Finally, the Lender is adequately protected by its lien in the
Current Orders and will be repaid from it. Further, because the net
proceeds from the Current Order will be approximately $150,000,
both the SBA and TTB will be further protected by the increase of
their security by this amount.
A copy of the motion is available at https://urlcurt.com/u?l=zjmUNu
from PacerMonitor.com.
About Marine Wholesale and Warehouse Co.
Marine Wholesale and Warehouse Co. sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 22-13785)
on July 12, 2022. In the petition signed by Jennifer Hartry, vice
president and secretary, the Debtor disclosed up to $50 million in
both assets and liabilities.
Judge Sheri Bluebond oversees the case.
David R. Haberbush, Esq., at Haberbush, LLP is the Debtor's
counsel.
MERCY HOSPITAL: PCO Reports No Decline in Patient Care Quality
--------------------------------------------------------------
Susan Goodman, the court-appointed patient care ombudsman, filed a
second interim report regarding the quality of patient care
provided at the community hospital and clinics operated by Mercy
Hospital, Iowa City, Iowa and its affiliates.
The PCO visited the clinics that she missed in the first round of
site visits, inclusive of the primary care clinics in the rural
communities of Solon, Tipton, Muskatine, West Liberty, West Branch,
and Kalona. PCO also visited the specialty Urology and Cardiology
clinics.
Ms. Goodman interviewed patients, clinicians, and staff regarding
the auction results where the feedback from these constituencies
was consistent. With a few exceptions, individuals shared their
belief that they felt an Iowa-based partnership would provide a
more stable path out of bankruptcy and, more importantly, for the
long term. Patients told the PCO they hoped that the University of
Iowa Health Center would keep the community feel of Mercy,
particularly the emergency department, the infusion center, and the
clinics.
The PCO received reports of direct care and support department
staff member resignations that were attributed to reaching an
uncertainty tolerance limit with the auction outcome back-and-forth
that was highlighted by news outlets, prior to the sale hearing.
The unit manager team continued to be particularly impacted by
staffing departures, spending a great deal of time working to fill
staffing gaps, up to and including personally working shifts when
necessary.
The PCO did not observe material decline in the quality of patient
care provided as contemplated under Section 333(b) of the
Bankruptcy Code. The recent, definitive auction clarity will
hopefully reduce staff departures.
A copy of the PCO report is available for free at
https://urlcurt.com/u?l=3mmPN0 from PacerMonitor.com.
The ombudsman may be reached at:
Susan N. Goodman, RN JD
Pivot Health Law
P.O. Box 69734
Oro Valley, AZ 85737
Phone: (520) 744-7061
Fax: (520) 575-4075
Email: sgoodman@pivothealthaz.com
About Mercy Hospital, Iowa City
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 of unsecured creditors on Aug. 15, 2023. The
committee tapped Sills Cummis & Gross P.C. and Cutler Law Firm,
P.C. as legal counsels; and FTI Consulting, Inc. as financial
advisor.
Susan N. Goodman is the patient care ombudsman appointed in the
Debtors' cases.
MICHIGAN MEDICAL: Doctor, Medical Practice File for Chapter 11
--------------------------------------------------------------
Michigan Medical Group P.C. filed for chapter 11 protection in the
Eastern District of Michigan. The owner of the business, Najam
Syed, also sought bankruptcy protection.
Organized in 2001, Michigan Medical Group, P.C. is a medical
practice located in Taylor, Michigan that specializes in internal
medicine. Michigan Medical Group, P.C.'s sole shareholder is Dr.
Najam K. Syed. The Debtor takes great pride in its ability to
service the community and patients, many of whom receive government
assistance. Patient care is provided at the Debtor's offices and
at the three hospitals in which Dr. Syed has privileges so as to
provide continuity of care.
The Debtors filed motions to use cash collateral and pay
prepetition wages of 8 employees.
The majority of the value of Michigan Medical arises from its
ongoing operations and ability to continue to provide services to
patients. Without the authority of the Court granting the relief
requested in the "first day" motions, the Debtor would suffer
irreparable harm, because it will be forced to immediately shut
down.
Michigan Medical 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.
A telephonic meeting of creditors under 11 U.S.C. Section 341(a) is
slated for January 3, 2024, at 11:00 AM
About Michigan Medical Group
Organized in 2001, Michigan Medical Group, P.C., is a medical
practice located in Taylor, Michigan that specializes in internal
medicine. Michigan Medical Group, P.C.'s sole shareholder is Dr.
Najam K. Syed.
Michigan Medical Group P.C. sought relief under Subchapter V of
Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Mich. Case No.
23-50240) on November 22, 2023. In the petition filed by Najam
Syed, as president, the Debtor estimated assets up to $50,000 and
estimated liabilities between $1 million and $10 million.
Dr. Najam Syed also commenced a personal Chapter 11 bankruptcy case
(Case No.23-50241) on Nov. 22, 2023. Mr. Syed's case is jointly
administered with Michigan Medical's.
The Honorable Bankruptcy Judge Mark A Randon oversees the cases.
The Debtors are represented by:
Elliot G. Crowder, Esq.
6130 Mabenwoods Lane
Canton, MI 48187
Tel: (248) 354-7906 Ext. 2254
Email: ecrowder@sbplclaw.com
MILL 407: Voluntary Chapter 11 Case Summary
-------------------------------------------
Debtor: Mill 407 LLC
5 N 3 Street Unit 407
Brooklyn, NY 11249
Business Description: Mill 407 is a Single Asset Real Estate
debtor (as defined in 11 U.S.C. Section
101(51B)).
Chapter 11 Petition Date: November 30, 2023
Court: United States Bankruptcy Court
Eastern District of New York
Case No.: 23-44406
Judge: Hon. Nancy Hershey Lord
Debtor's Counsel: Vivian Sobers, Esq.
SOBERS LAW PLLC
11 Broadway Suite 615
New York, NY 10004
Tel: (917) 225-4501
E-mail: vsobers@soberslaw.com
Estimated Assets: $ million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Michael Mandel as owner.
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/AWC27WQ/Mill_407_LLC__nyebke-23-44406__0001.0.pdf?mcid=tGE4TAMA
MONICATTI AUTO: Court OKs Bid Rules for Double Vision Property Sale
-------------------------------------------------------------------
Double Vision Holdings, LLC, an affiliate of Monicatti Auto Sales,
LLC, won court approval of bid procedures for the sale of its real
property in Chesterfield.
Judge Mark Randon of the U.S. Bankruptcy Court for the Eastern
District of Michigan on Nov. 27 approved the bid procedures, saying
they "represent the best method for maximizing the value of [Double
Vision's] estate."
Double Vision negotiated the bid procedures with Commercial Capital
BIDCO, Inc., which holds a "first priority lien" on the property
located at 55800 New Haven Road, Chesterfield.
Under the court-approved bid procedures, bidding will be done
online and will open on Dec. 20.
To bid during the auction, potential buyers need to register online
at the website of Hilco Real Estate, LLC, the auctioneer tapped by
Double Vision.
Moreover, potential buyers need to provide a deposit of $50,000 as
an initial down payment. Initial deposits will be accepted up to
Dec. 19, at 5:00 p.m. (EST).
The online auction will open at 9:00 a.m. (EST) on Dec. 20 and will
close at 5:00 p.m. (EST).
The starting bid at the auction is $2.7 million. Meanwhile, the
increments of bidding will start at $100,000, but are subject to
change at the discretion of the company and Hilco.
The winning bid and the backup bid selected during the auction will
be subject to approval by the bankruptcy court.
The sale hearing will be held by telephone on Jan. 8 next year.
Objections to the sale are due by Dec. 18.
About Monicatti Auto Sales
Monicatti Auto Sales, LLC is a seller of pre-owned vehicles in New
Baltimore, Mich.
Monicatti Auto Sales and Double Vision Holdings, LLC filed
petitions under Chapter 11, Subchapter V of the Bankruptcy Code
(Bankr. E.D. Mich. Lead Case No. 23-47427) on Aug. 24, 2023. At the
time of the filing, Monicatti Auto Sales disclosed up to $100,000
in assets and up to $10 million in liabilities while Double Vision
Holdings disclosed up to $10 million in both assets and
liabilities.
Judge Mark A. Randon oversees the cases.
Elliot G. Crowder, Esq., at Stevenson & Bullock, PLC represents the
Debtors as legal counsel.
MVK FARMCO: Asset Sale Proceeds to Fund Plan
--------------------------------------------
MVK FarmCo, LLC, and its affiliates filed with the U.S. Bankruptcy
Court for the District of Delaware a Disclosure Statement for the
Joint Chapter 11 Plan dated November 21, 2023.
The Debtors and their non-Debtor affiliates are the largest
producer of stone fruit in North America, farming approximately
18,000 acres of peaches, nectarines, plums, and various other stone
fruits across the San Joaquin Valley in California.
The Company faced a potential liquidity shortfall in the spring of
2023. To address it, in early 2023, the Company and its advisors
explored financing options, including soliciting proposals from
various parties outside of the Company's existing capital
structure. Also prior to the Petition Date, the Debtors ran an
extensive sale and marketing process for their assets.
In consultation with the relevant parties, the Company and their
advisors determined that the value maximizing path at this
juncture, based on market feedback and third-party interest, was to
initiate these Chapter 11 Cases to implement an in-court sale
process or, alternatively, an equitization transaction whereby the
Debtors' lenders take ownership of the Debtors' business.
On the Petition Date, the Debtors filed a bidding procedures motion
requesting that the Court enter an order establishing bidding
procedures to market the Debtors' assets. The Court approved the
bidding procedures on November 17, 2023 (the "Bidding Procedures
Order"). The bidding procedures are designed to procure the highest
or otherwise best available offer(s) for the Debtors' assets. To
the extent any Third Party Sales occur, the Debtors intend to use
the proceeds of such sale(s) to fund distributions to creditors
under the Plan.
The Debtors believe that the Plan maximizes the value of recoveries
to all stakeholders and generally to distribute all property of the
Debtors' estates that is or becomes available for distribution
according to the priorities established by the Bankruptcy Code and
applicable law. The Plan provides the ability of the Debtors to
satisfy administrative and priority claims in full and, in the case
of a Third Party Sale and depending on the proceeds of any Third
Party Sales, to make a distribution to unsecured creditors who
likely otherwise would receive minimal (if any) and substantially
delayed recovery.
The Plan contemplates the possibility of one or more asset sales of
some or substantially all of the Debtors' assets as approved by the
Bankruptcy Court pursuant to the Bidding Procedures Order.
Following any Asset Sale(s), the Plan provides for the efficient
distribution of distributable cash (including the proceeds of the
Asset Sale(s)), if any, to Holders of Allowed Claims and Allowed
Interests and the orderly Wind-Down and dissolution of the Debtors'
Estates. If the ongoing sale process does not yield a viable buyer
for the Debtors' assets (or does not result in the sale of all of
the Debtors' assets), the Plan contemplates an equitization
transaction whereby the Debtors' lenders will take ownership of the
Debtors' businesses.
The Debtors' estimate of aggregate Allowed General Unsecured Claims
ranges from approximately $0 to $40,000,000. Although the Debtors'
estimate of Allowed General Unsecured Claims is generally the
result of the Debtors' and their advisors' analysis of reasonably
available information, the projected amount of Other General
Unsecured Claims is subject to material change (either higher or
lower), which difference could materially affect Class 7
recoveries, if any, and reflects the Debtors' current view on
potential rejection damages.
Class 7 consists of General Unsecured Claims.
* If one or more Third Party Sales occurs, each Allowed
General Unsecured Claim, each Holder of an Allowed General
Unsecured Claim shall receive the following treatment: (A) if the
amount of Excess Sale Proceeds is greater than zero, each Holder of
an Allowed General Unsecured Claim shall receive its Pro Rata share
of the Excess Sale Proceeds; and (B) otherwise, each General
Unsecured Claim shall be released, and each Holder of a General
Unsecured Claim shall not receive or retain any distribution,
property, or other value on account of such General Unsecured
Claim.
* If a Credit Bid Sale or the Equitization Restructuring
occurs and a Third Party Sale does not also occur, each Holder of a
General Unsecured Claim shall not receive or retain any
distribution, property, or other value on account of such General
Unsecured Claim.
On the Effective Date, and without the need for any further
corporate or limited liability company action or approval of any
board of directors, board of managers, members, shareholders or
officers of any Debtor, Reorganized Debtor, or Wind-Down Debtor, as
applicable, all Existing Equity Interests shall be cancelled,
released, and extinguished without any distribution, and will be of
no further force or effect, and each Holder of an Existing Equity
Interest shall not receive or retain any distribution, property, or
other value on account of such Existing Equity Interest.
The Debtors shall fund the distributions and obligations under the
Plan with Cash of the Debtors, the Reorganized Debtors, or the
Wind-Down Debtors, as applicable, on or after the Effective Date
from all sources, including, without limitation, the revenues and
proceeds of any Third Party Sale(s) and proceeds from all Causes of
Action not settled, released, discharged, enjoined, or exculpated
under the Plan or otherwise on or prior to the Effective Date
available for use and distribution in accordance with the
priorities set forth herein.
The Debtors shall fund distributions under the Plan pursuant to the
Equitization Restructuring, as applicable, with (1) the issuance of
the Reorganized Debtor Equity, (2) proceeds of all Third Party
Sales (if any), (3) Cash on hand, and (4) the issuance of the Exit
Bridge Facility Term Loans, Exit OpCo Facility Term Loans, and Exit
PropCo Facility Term Loans (in each case, if and to the extent
applicable). Each distribution and issuance referred to in Article
IV of the Plan shall be governed by the terms and conditions set
forth in the Plan applicable to such distribution or issuance and
by the terms and conditions of the instruments or other documents
evidencing or relating to such distribution or issuance, which
terms and conditions shall bind each Entity receiving such
distribution or issuance.
A full-text copy of the Disclosure Statement dated November 21,
2023 is available at https://urlcurt.com/u?l=VIhGsj from
PacerMonitor.com at no charge.
Proposed Co-Counsel for the Debtors:
Ryan Blaine Bennett, Esq.
Whitney C. Fogelberg, Esq.
Kirkland & Ellis LLP
Kirkland & Ellis International LLP
300 North LaSalle Street
Chicago, IL 60654
Tel: (312) 862-2000
Fax: (312) 862-2200
Email: ryan.bennett@kirkland.com
whitney.fogelberg@kirkland.com
Proposed Co-Counsel for the Debtors:
Joseph Barry, Esq.
Young Conaway Stargatt & Taylor, LLP
Rodney Square
1000 North King Street
Wilmington, DE 19801
Telephone: (302) 571-6600
Facsimile: (302) 571-1253
Email: jbarry@ycst.com
About MVK FarmCo
MVK FarmCo, LLC, and its affiliates are providers of stone fruit,
operating an integrated network of farms, ranches and packaging
facilities. Founded in 1999 and headquartered in Fresno, Calif.,
the Debtors cultivate approximately 18,000 acres of land nestled
throughout the San Joaquin Valley.
The Debtors filed Chapter 11 petitions (Bankr. D. Del. Lead Case
No. 23-11721) on Oct. 13, 2023. John Boken, chief executive
officer, signed the petitions.
At the time of the filing, the Debtors reported consolidated assets
of $500 million to $1 billion and consolidated liabilities of $1
billion to $10 billion.
Judge Laurie Selber Silverstein oversees the cases.
The Debtors tapped Kirkland & Ellis, LLP and Kirkland & Ellis
International, LLP as bankruptcy counsel; Young Conaway Stargatt &
Taylor, LLP as local counsel; Houlihan Lokey as investment banker;
and Stretto, Inc. as claims and noticing agent. AP Services, LLC
provides interim management and restructuring support services to
the Debtors.
MVK FARMCO: Committee Hires Gellert Scali as Delaware Counsel
-------------------------------------------------------------
The official committee of unsecured creditors of MVK FARMCO LLC and
its affiliates seeks approval from the U.S. Bankruptcy Court for
the District of Delaware to employ Gellert Scali Busenkell & Brown,
LLC as its Delaware counsel.
The firm's services include:
(a) advising the Committee with respect to its rights, duties,
and powers in the Chapter 11 Cases;
(b) assisting and advising the Committee in its consultation
with the Debtors relative to the administration of the Chapter 11
Cases;
(c) assisting the Committee in analyzing the claims of the
Debtors' creditors and the Debtors' capital structure and in
negotiating with holders of claims and equity interests;
(d) assisting the Committee in its investigation of the acts,
conduct, assets, liabilities, and financial condition of the
Debtors and of the operation of the Debtors' business;
(e) assisting the Committee in analyzing (i) the Debtors'
pre-petition financing, (ii) proposed use of cash collateral, and
(iii) the adequacy of the Debtors' financing and proposed budget;
(f) assisting the Committee in its investigation of the liens
and claims of the holders of the Debtors' pre-petition debt and the
prosecution of any claims or causes of action revealed by such
investigation;
(g) assisting the Committee in its analysis of, and
negotiations with, the Debtors or any third party concerning
matters related to, among other things, the assumption or rejection
of certain leases of nonresidential real property and executory
contracts, asset dispositions, sale of assets, financing of other
transactions and the terms of one or more plans of reorganization
for the Debtors and accompanying disclosure statements and related
plan documents;
(h) assisting and advising the Committee as to its
communications to unsecured creditors regarding significant matters
in the Chapter 11 Cases;
(i) representing the Committee at hearings and other
proceedings;
(j) reviewing and analyzing applications, orders, statements
of operations, and schedules filed with the Court and advising the
Committee as to their propriety;
(k) assisting the Committee in preparing pleadings and
applications as may be necessary in furtherance of the Committee's
interests and objectives in the Chapter 11 Cases, including without
limitation, the preparation of retention papers and fee
applications for the Committee's professionals, including Gellert
Scali;
(l) assisting the Committee and providing advice concerning
the proposed sale of substantially all of the Debtors' assets,
including issues concerning any potential competing bidders and the
auction process;
(m) preparing, on behalf of the Committee, any pleadings,
including without limitation, motions, memoranda, complaints,
adversary complaints, objections, or comments in connection with
any of the foregoing; and
(n) performing such other legal services as may be required or
are otherwise deemed to be in the interests of the Committee in
accordance with the Committee's powers and duties as set forth in
the Bankruptcy Code, Bankruptcy Rules, or other applicable law.
The firm's hourly rates are as follows:
Partners of the Firm $475 - $490
Of Counsel $375 - $425
Associates $350
Paralegals, Practice Support
and Assistants $170 - $275
The following is provided in response to the request for additional
information contained in paragraph D.1. of the U.S. Trustee
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
during the 12 months prepetition period. If your billing rates and
material financial terms have changed postpetition, explain the
difference and the reasons
for the difference.
Response: Gellert Scali did not represent the Committee prior
to the Petition Date.
Question: Has your client approved your prospective budget and
staffing plan and, if so, for what budget period?
Response: Gellert Scali expects to develop a budget and
staffing plan to reasonably comply with the U.S. Trustee's request
for information and additional disclosures, as to which Gellert
Scali reserves all rights. The Committee has approved Gellert
Scali's proposed hourly billing rates.
Michael Busenkell, Esq., a partner at Gellert Scali Busenkell &
Brown, 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:
Michael Busenkell, Esq.
GELLERT SCALI BUSENKELL & BROWN, LLC
1201 N. Orange Street, Suite 300
Wilmington, DE 19801
Telephone: (302) 425-5806
Email: mbusenkell@gsbblaw.com
About MVK FarmCo
MVK FarmCo, LLC and its affiliates are providers of stone fruit,
operating an integrated network of farms, ranches and packaging
facilities. Founded in 1999 and headquartered in Fresno, Calif.,
the Debtors cultivate approximately 18,000 acres of land nestled
throughout the San Joaquin Valley.
The Debtors filed Chapter 11 petitions (Bankr. D. Del. Lead Case
No. 23-11721) on Oct. 13, 2023. John Boken, chief executive
officer, signed the petitions.
At the time of the filing, the Debtors reported consolidated assets
of $500 million to $1 billion and consolidated liabilities of $1
billion to $10 billion.
Judge Laurie Selber Silverstein oversees the cases.
The Debtors tapped Kirkland & Ellis, LLP and Kirkland & Ellis
International, LLP as bankruptcy counsel; Young Conaway Stargatt &
Taylor, LLP as local counsel; Houlihan Lokey as investment banker;
and Stretto, Inc. as claims and noticing agent. AP Services, LLC
provides interim management and restructuring support services to
the Debtors.
MVK FARMCO: Committee Hires Lowenstein Sandler as Lead Counsel
--------------------------------------------------------------
The official committee of unsecured creditors of MVK FARMCO LLC and
its affiliates seeks approval from the U.S. Bankruptcy Court for
the District of Delaware to employ Lowenstein Sandler LLP as its
lead counsel.
The firm's services include:
(a) advising the Committee with respect to its rights, duties,
and powers in the Chapter 11 Cases;
(b) assisting and advising the Committee in its consultation
with the Debtors relative to the administration of the Chapter 11
Cases;
(c) assisting the Committee in analyzing the claims of the
Debtors' creditors and the Debtors' capital structure and in
negotiating with holders of claims and equity interests;
(d) assisting the Committee in its investigation of the acts,
conduct, assets, liabilities, and financial condition of the
Debtors and of the operation of the Debtors' business;
(e) assisting the Committee in analyzing (i) the Debtors'
pre-petition financing, (ii) proposed use of cash collateral, and
(iii) the adequacy of the Debtors' financing and proposed budget;
(f) assisting the Committee in its investigation of the liens
and claims of the holders of the Debtors' pre-petition debt and the
prosecution of any claims or causes of action revealed by such
investigation;
(g) assisting the Committee in its analysis of, and
negotiations with, the Debtors or any third party concerning
matters related to, among other things, the assumption or rejection
of certain leases of nonresidential real property and executory
contracts, asset dispositions, sale of assets, financing of other
transactions and the terms of one or more plans of reorganization
for the Debtors and accompanying disclosure statements and related
plan documents;
(h) assisting and advising the Committee as to its
communications to unsecured creditors regarding significant matters
in the Chapter 11 Cases;
(i) representing the Committee at hearings and other
proceedings;
(j) reviewing and analyzing applications, orders, statements
of operations, and schedules filed with the Court and advising the
Committee as to their propriety;
(k) assisting the Committee in preparing pleadings and
applications as may be necessary in furtherance of the Committee's
interests and objectives in the Chapter 11 Cases, including without
limitation, the preparation of retention papers and fee
applications for the Committee's professionals, including
Lowenstein Sandler;
(l) assisting the Committee and providing advice concerning
the proposed sale of substantially all of the Debtors' assets,
including issues concerning any potential competing bidders and the
auction process;
(m) preparing, on behalf of the Committee, any pleadings,
including without limitation, motions, memoranda, complaints,
adversary complaints, objections, or comments in connection with
any of the foregoing; and
(n) performing such other legal services as may be required or
are otherwise deemed to be in the interests of the Committee in
accordance with the Committee's powers and duties as set forth in
the Bankruptcy Code, Bankruptcy Rules, or other applicable law.
Lowenstein Sandler's hourly rates are as follows:
Partners $690 to $1,835
Of Counsel $810 to $1,475
Senior Counsel and Counsel $575 to $1,410
Associates $475 to $965
Paralegals, Practice Support
and Assistants $240 to $425
The following is provided in response to the request for additional
information contained in paragraph D.1. of the U.S. Trustee
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
during the 12 months prepetition period. If your billing rates and
material financial terms have changed postpetition, explain the
difference and the reasons for the difference.
Response: Lowenstein Sandler did not represent the Committee
prior to the Petition Date.
Question: Has your client approved your prospective budget and
staffing plan and, if so, for what budget period?
Response: Lowenstein Sandler expects to develop a budget and
staffing plan to reasonably comply with the U.S. Trustee's request
for information and additional disclosures, as to which Lowenstein
Sandler reserves all rights. The Committee has approved Lowenstein
Sandler's proposed hourly billing rates.
Bruce S. Nathan, a partner of Lowenstein Sandler, assured the court
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:
Bruce S. Nathan, Esq.
LOWENSTEIN SANDLER LLP
1251 Avenue of the Americas
New York, NY 10020
Tel: (212) 262-6700
Fax: (212) 262-7402
Email: bnathan@lowenstein.com
About MVK FarmCo
MVK FarmCo, LLC and its affiliates are providers of stone fruit,
operating an integrated network of farms, ranches and packaging
facilities. Founded in 1999 and headquartered in Fresno, Calif.,
the Debtors cultivate approximately 18,000 acres of land nestled
throughout the San Joaquin Valley.
The Debtors filed Chapter 11 petitions (Bankr. D. Del. Lead Case
No. 23-11721) on Oct. 13, 2023. John Boken, chief executive
officer, signed the petitions.
At the time of the filing, the Debtors reported consolidated assets
of $500 million to $1 billion and consolidated liabilities of $1
billion to $10 billion.
Judge Laurie Selber Silverstein oversees the cases.
The Debtors tapped Kirkland & Ellis, LLP and Kirkland & Ellis
International, LLP as bankruptcy counsel; Young Conaway Stargatt &
Taylor, LLP as local counsel; Houlihan Lokey as investment banker;
and Stretto, Inc. as claims and noticing agent. AP Services, LLC
provides interim management and restructuring support services to
the Debtors.
NATIONAL PAVER: Court OKs Cash Collateral Access on Final Basis
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of California,
Oakland Division, authorized National Paver Systems Inc. to use
cash collateral on a final basis, in accordance with the budget.
The Debtor's primary business is a paving business which generates
average monthly gross revenue of $279,333. The Debtor owns a piece
of real property which is used partly as a rental property,
generating $5,635 rental income per month.
As adequate protection for the use of cash collateral, the Debtor
offered:
I. maintenance of the Property and
II. payments in the following amounts per month:
i. Arch Loans (1st lien holder) - $4,200
ii. Arch Loans (2nd lien holder) - $0
iii. Lucy Strong (3rd lien holder) - $0
iv. the Debtor also will reserve $1,150 for future property tax
installments.
The court said for rents received in November 2023, all the funds
should be tendered to NPI Debt Fund I, LP.
For rents received in December 2023 and subsequent months, the
Debtor will send 11/12 of the rents to NPI Debt Fund I, LP and 1/12
of the rents will be reserved for future property tax installments.
The right to use cash collateral will continue to the earlier of
plan confirmation, dismissal of the case, or further order from the
Court.
A copy of the motion is available at https://urlcurt.com/u?l=XNoetz
from PacerMonitor.com.
A copy of the court's order is available at
https://urlcurt.com/u?l=0O7drX from PacerMonitor.com.
About National Paver Systems Inc.
National Paver Systems, Inc. filed Chapter 11 petition (Bankr.
N.D.Calif. Case No. 23-41339) on Oct. 16, 2023, with $500,001 to $1
million in both assets and liabilities.
Judge Charles Novack oversees the case.
Lars T. Fuller, Esq., at The Fuller Law Firm represents the Debtor
as bankruptcy counsel.
NATURALSHRIMP INC: Incurs $2.65 Million Net Loss in Second Quarter
------------------------------------------------------------------
Naturalshrimp Incorporated filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $2.65 million on $7,010 of net revenue for the three months
ended Sept. 30, 2023, compared to a net loss of $24.53 million on
$51,725 of net revenue for the three months ended Sept. 30, 2022.
For the nine months ended Sept. 30, 2023, the Company reported a
net loss of $4.94 million on $163,141 of net revenue, compared to a
net loss of $26.73 million on $88,061 of net revenue for the nine
months ended Sept. 30, 2022.
As of Sept. 30, 2023, the Company had $29.42 million in total
assets, $32.37 million in total liabilities, $1.96 million in
series E redeemable convertible preferred stock, $43.61 million in
series F redeemable convertible preferred stock, and a total
stockholders' deficit of $48.52 million.
"For the six months ended September 30, 2023, the Company had a net
loss available for common stockholders of approximately $5,419,000.
As of September 30, 2023, the Company had an accumulated deficit
of approximately $172,952,000 and a working capital deficit of
approximately $10,257,000. These factors raise substantial doubt
about the Company's ability to continue as a going concern, within
one year from the issuance date of this filing. The Company's
ability to continue as a going concern is dependent on its ability
to raise the required additional capital or debt financing to meet
short and long-term operating requirements. During the six months
ended September 30, 2023, the Company received net cash proceeds of
approximately $1,865,000 from the sale of common shares...$150,000
from the sale of Series E Preferred stock and the Company received
$140,000 proceeds from the issuance of promissory notes, related
parties. Subsequent to period end, the Company received
approximately $166,000 for the sale of common shares,"
Naturalshrimp said.
"Management believes that private placements of equity capital will
be needed to fund the Company's long-term operating requirements.
The Company may also encounter business endeavors that require
significant cash commitments or unanticipated problems or expenses
that could result in a requirement for additional cash. If the
Company raises additional funds through the issuance of equity, the
percentage ownership of its current shareholders could be reduced,
and such securities might have rights, preferences or privileges
senior to its common stock. Additional financing may not be
available upon acceptable terms, or at all. If adequate funds are
not available or are not available on acceptable terms, the Company
may not be able to take advantage of prospective business endeavors
or opportunities, which could significantly and materially restrict
its operations. The Company continues to pursue external financing
alternatives to improve its working capital position. If the
Company is unable to obtain the necessary capital, the Company may
be unable to develop its facilities and enter into production,"
Naturalshrimp said.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1465470/000149315223042141/form10-q.htm
About NaturalShrimp
NaturalShrimp, Inc. is a publicly traded aqua-tech Company,
headquartered in Dallas, with production facilities located near
San Antonio, Texas. The Company has developed a commercially
viable system for growing shrimp in enclosed, salt-water systems,
using patented technology to produce fresh, never frozen, naturally
grown shrimp, without the use of antibiotics or toxic chemicals.
NaturalShrimp systems can be located anywhere in the world to
produce gourmet-grade Pacific white shrimp.
NaturalShrimp reported a net loss of $16 million for the year ended
March 31, 2023, compared to a net loss of $86.30 million for the
year ended March 31, 2022. As of March 31, 2023, the Company had
$32.58 million in total assets, $32.66 million in total
liabilities, $2 million in series E redeemable convertible
preferred stock, $43.61 million in series F redeemable convertible
preferred stock, and a total stockholders' deficit of $45.69
million.
Dallas, Texas-based Turner, Stone & Company, L.L.P., the Company's
auditor since 2015, issued a "going concern" qualification in its
report dated June 26, 2023, citing that the Company has suffered
recurring losses from inception and has a net capital deficiency
that raise substantial doubt about its ability to continue as a
going concern.
NC GAS HOUSE: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: NC Gas House Gang LLC
9183A Central Avenue
Capitol Heights MD 20743
Chapter 11 Petition Date: December 1, 2023
Court: United States Bankruptcy Court
District of Maryland
Case No.: 23-18766
Judge: Hon. Lori S. Simpson
Debtor's Counsel: Ronald Drescher, Esq.
DRESHCHER & ASSOCIATES, PA
10999 Red Run Blvd. Suite 205 PMB 224
Owings Mills, MD 21117
Tel: 410-484-9000
E-mail: rondrescher@drescherlaw.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Brandon Bellamy as manager.
A copy of the Debtor's list of 20 largest unsecured creditors is
now available for download at PacerMonitor.com.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/WCMX3UY/NC_Gas_House_Gang_LLC__mdbke-23-18766__0001.0.pdf?mcid=tGE4TAMA
NEKTAR THERAPEUTICS: Granted 180 Days to Regain Nasdaq Compliance
-----------------------------------------------------------------
Nektar Therapeutics disclosed in a Form 8-K filed with the
Securities and Exchange Commission that the Company received a
written notice from Nasdaq Stock Market LLC stating that the
Company is eligible for an additional 180-calendar day period, or
until May 20, 2024, to regain compliance with the minimum bid price
requirement.
In the Notice, Nasdaq noted that the Company's common stock had not
regained compliance with the minimum bid price requirement during
the initial 180-calendar day period that ended on Nov. 22, 2023,
and that the Company had submitted written notice to Nasdaq of its
intention to cure the required minimum bid price deficiency by
effecting a reverse stock split prior to May 20, 2024, if
necessary. To regain compliance with the minimum bid price
requirement, the Company's common stock must be at least $1.00 per
share for a minimum of 10 consecutive business days (and generally
no more than 20 consecutive business days) during this additional
180 calendar day period. Nasdaq also indicated in its Notice that
the Company's common stock would be transferred from the Nasdaq
Global Select Market to the Nasdaq Capital Market at the opening of
business on Nov. 28, 2023. The Nasdaq Capital Market operates in
substantially the same manner as the Nasdaq Global Select Market,
and the Company's common stock will continue to be listed and
traded under the symbol "NKTR."
The Company said it will continue to actively monitor the closing
bid price for its common stock and evaluate available options to
regain compliance with the minimum bid price requirement. If the
Company fails to regain compliance during the second compliance
period, then Nasdaq will notify the Company of its determination to
delist the Company's common stock. At that time, the Company may
appeal Nasdaq's delisting determination to a Nasdaq Listing
Qualifications panel. There can be no assurance that, if the
Company does appeal any delisting determination by Nasdaq to the
Panel, such appeal would be successful.
Nektar Therapeutics, on May 26, 2023, received a written letter
from Nasdaq stating that the Company was not in compliance with
Nasdaq Listing Rule 5450(a)(1) because the Company's common stock
did not maintain a minimum bid price of $1.00 per share for 30
consecutive business days. The Company was given an initial
180-calendar day period, or until Nov. 22, 2023, to regain
compliance with the minimum bid price requirement.
About Nektar Therapeutics
Nektar Therapeutics -- http://www.nektar.com-- is a clinical
stage, research-based drug discovery biopharmaceutical company
focused on discovering and developing innovative medicines in the
field of immunotherapy.
Nektar Therapeutics reported a net loss of $368.20 million in 2022,
a net loss of $523.84 million in 2021, a net loss of $444.44
million in 2020, and a net loss of $440.67 million in 2019.
NEKTAR THERAPEUTICS: Incurs $45.8 Million Net Loss in Third Quarter
-------------------------------------------------------------------
Nektar Therapeutics filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $45.84 million on $24.14 million of total revenue for the three
months ended Sept. 30, 2023, compared to a net loss of $59.05
million on $23.63 million of total revenue for the three months
ended Sept. 30, 2022.
For the nine months ended Sept. 30, 2023, the Company reported a
net loss of $233.98 million on $66.24 million of total revenue,
compared to a net loss of $308.51 million on $70.03 million of
total revenue for the same period during the prior year.
As of Sept. 30, 2023, the Company had $442.24 million in total
assets, $282.88 million in total liabilities, and $159.37 million
in total stockholders' equity.
"We have financed our operations primarily through revenue from
upfront and milestone payments under our strategic collaboration
agreements, royalties and product sales, as well as public and
private placements of debt and equity securities. As of September
30, 2023, we had approximately $372.7 million in cash and
investments in marketable securities," Nektar said.
"We estimate that we have working capital to fund our current
business plans for at least the next twelve months from the date of
filing," the Company said.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/906709/000095017023060475/nktr-20230930.htm
About Nektar Therapeutics
Nektar Therapeutics -- http://www.nektar.com-- is a clinical
stage, research-based drug discovery biopharmaceutical company
focused on discovering and developing innovative medicines in the
field of immunotherapy.
Nektar Therapeutics reported a net loss of $368.20 million in 2022,
a net loss of $523.84 million in 2021, a net loss of $444.44
million in 2020, and a net loss of $440.67 million in 2019.
NEW HAVEN TRUCK: Court OKs Cash Collateral Access Thru Dec 31
-------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Connecticut, New
Haven Division, authorized New Haven Truck and Auto Body, Inc. to
use cash collateral on an interim basis in accordance with the
budget, with a 20% variance, through December 31, 2023.
Citizens Bank, National Association asserts an interest in the
Debtor's cash collateral.
As adequate protection against any post-petition diminution of the
Lender's cash collateral under 11 U.S.C. Sections 361 and 363, the
Lender is granted replacement or substitute liens in all
post-petition assets of the Debtor and proceeds thereof, and the
replacement liens will have the same validity, extent, and priority
that the Lender possessed as to said liens on the Petition Date.
The Lender's liens and any replacement thereof pursuant to the
order, will be subject and subordinate to a carve-out of such liens
for amounts payable by the Debtor for (i) fees of the United States
Trustee under 28 U.S.C. Section 1930(a)(6); (ii) wages and benefits
due the Debtor's employees and (iii) court approved fees of the
Debtor's professionals.
The Debtor and the Lender have agreed to an adequate protection
payment of $3,000 per month to be made by the 26th day of each
month commencing with November 26, 2023.
A final hearing on the matter is set for December 25 at 10:30 a.m.
A copy of the court's order and the Debtor's budget is available at
https://urlcurt.com/u?l=eW29K7 from PacerMonitor.com.
The Debtor projects $18,000 in total cost of goods sold and $41,126
in total expenses.
About New Haven Truck and Auto Body, Inc.
New Haven Truck and Auto Body, Inc. is a complete vehicle collision
and body repair shop located in East Haven, Connecticut.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Conn. Case No. 23-30298) on April 28,
023. In the petition signed by William S. Snow, Jr., president, the
Debtor disclosed up to $10 million in both assets and liabilities.
Stuart H. Caplan, Esq., at the Law Offices of Neil Crane, LLC,
represents the Debtor as legal counsel.
NICNAT LLC: Taps Hiltz Zanzig & Heiligman as Bankruptcy Counsel
---------------------------------------------------------------
Nicnat LLC seeks approval from the U.S. Bankruptcy Court for the
Northern District of Illinois to employ Hiltz Zanzig & Heiligman
LLC as its counsel.
The firm's services include:
a. assisting the Debtor in performing its duties as a
debtor-in-possession;
b. meeting with the United States Trustee and their
representatives concerning administration of the estate;
c. meeting and negotiating with creditors and their
representatives and other interested parties regarding matters
relating to the administration of the Debtor's estate; and
d. performing all other legal services as required.
The firm will be paid at these rates:
John F. Hiltz, Partner $430 per hour
Alex J. Whitt, Associate $275 per hour
Paralegal Time $175 per hour
As disclosed in court filings, Hiltz Zanzig & Heiligman neither
represents nor holds any interest adverse to the Debtor and its
estate.
The firm can be reached through:
John F. Hiltz, Esq.
Alex J. Whitt, Esq.
Hiltz Zanzig & Heiligman, LLC
53 West Jackson Blvd., Suite 1301
Chicago, IL 60604
Tel: (312) 566-9008
Email: jhiltz@hzhlaw.com
About Nicnat LLC
Nicnat is primarily engaged in renting and leasing real estate
properties.
Nicnat LLC filed its voluntary petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. N.D. Ill. Case No. 23-15379) on
November 15, 2023. The petition was signed by Pasquale Roppo as
member. At the time of filing, the Debtor estimated $1 million to
$10 million in both assets and liabilities.
Judge Deborah L Thorne presides over the case.
John F Hiltz, Esq. at Hiltz Zanzig & Heiligman LLC represents the
Debtor as counsel.
NXT ENERGY: Releases Third Quarter 2023 Results
-----------------------------------------------
NXT Energy Solutions Inc. has released its financial and operating
results for the three and nine months ended September 30, 2023.
A summary of NXT's Key financial and operational highlights
include:
* On September 5, 2023. NXT announced that it has executed a
contract to provide an SFD® survey to an independent oil and gas
exploration company in Turkiye;
* The second tranche of the convertible debenture with
strategic partner Ataraxia Capital contributed $0.27 million of
cash;
* Cash at September 30, 2023 was $0.37 million;
* Net working capital was ($3.47) million at September 30,
2023;
* The Company recorded SFD®-related revenues of $nil;
* A net loss of $1.70 million was recorded for Q3-23,
including stock-based compensation expense ("SBCE") and
amortization expense of $0.48 million;
* A net loss of $5.03 million was recorded for YTD 2023,
including SBCE and amortization expense of $1.50 million;
* Net loss per common share for Q3-23 was $0.02 basic and
$0.02 diluted;
* Net loss per common share for YTD 2023 was $0.07 basic and
$0.07 diluted;
* Cash flow used in operating activities was $0.95 million
during Q3-23 and $3.36 million YTD 2023; and
* General and administrative expenses decreased by $0.12
million (13%) in Q3-23 as compared to Q3-22 and G&A expenses
decreased by $0.28 million (10%) in YTD 2023 as compared to YTD
2022.
Key financial and operational highlights occurring subsequent to
Q3-23 include:
* Mobilization of the SFD survey in Turkiye is expected to
commence in November, 2023; and
* US$1,000,000 (CDN$1,379,000) of a convertible debenture was
received.
On September 5, 2023, NXT announced that it has executed a contract
to provide an SFD survey to an independent oil and gas exploration
company in Turkiye, which is strategically located at the junction
of Eastern Europe, Central Asia and the Middle East. Operation
planning for this contract has commenced and NXT's interpretations
and recommendations are expected to be delivered during the fourth
quarter of 2023.
To support this SFD Survey and other working capital needs, on
November 9, 2023 NXT announced it is offering a multi-tranche
convertible debenture under which the subscribers will be able to
purchase a principal amount of up to US$2,500,000 (approximately
CAD$3,447,500.) The Debentures bear interest at 10% per annum, paid
quarterly in arears, and are due and payable two years after
issuance of the Debenture. The Debentures are convertible into
common shares of NXT at a conversion price of US$0.1808 (CAD$0.25)
per common share. US$1,000,000 (approximately CAD$1,379,000) of the
Debenture has already been subscribed by MCAPM, LP and Michael P.
Mork.
The Company intends to complete the remaining US$1,500,000 of the
Debenture offering on or before December 15, 2023.
Commenting on the Debenture offering, Bruce G. Wilcox, Interim CEO
of NXT said, "NXT continues to make progress on its business
development plans. We have the capital necessary to complete the
SFD contract in Turkiye and continue with other negotiations for
the deployment of our SFD technology in other regions. MCAPM LP and
Michael P. Mork have been significant shareholders of the Company
for over 20 years and we appreciate their confidence in the
potential of NXT."
A full-text copy of the Company's report filed on Form 6-K with the
Securities and Exchange Commission is available at
https://tinyurl.com/428ewazz
About NXT Energy
NXT Energy Solutions Inc. is a Calgary, Canada-based technology
company whose proprietary SFD survey system utilizes quantum-scale
sensors to detect gravity field perturbations in an airborne survey
method which can be used both onshore and offshore to remotely
identify areas with exploration potential for traps and reservoirs.
The SFD survey system enables the Company's clients to focus their
hydrocarbon exploration decisions concerning land commitments, data
acquisition expenditures and prospect prioritization on areas with
the greatest potential. SFD is environmentally friendly and
unaffected by ground security issues or difficult terrain and is
the registered trademark of NXT Energy Solutions Inc. NXT Energy
Solutions provides its clients with an effective and reliable
method to reduce time, costs, and risks related to exploration.
NXT Energy a net loss and comprehensive loss of C$6.73 million in
2022, a net loss and comprehensive loss of C$3.12 million in 2021,
a net loss and comprehensive loss of $6.03 million in 2020.
Calgary, Canada-based KPMG LLP, the Company's auditor since 2006,
issued a "going concern" qualification in its report dated March
31, 2023, citing that the Company's current and forecasted cash and
cash equivalents and short-term investments position are not
expected to be sufficient to meet its obligations which raises
substantial doubt about its ability to continue as a going
concern.
OAK-BARK CORP: Seeks to Hire Oliver & Cheek as Bankruptcy Counsel
-----------------------------------------------------------------
Oak-Bark Corporation seeks approval from the U.S. Bankruptcy Court
for the Eastern District of North Carolina to employ The Law
Offices of Oliver & Cheek, PLLC to handle its Chapter 11 case.
The firm will be paid based upon its normal and usual hourly
billing rates and will be reimbursed for out-of-pocket expenses
incurred.
The Debtor paid the firm a retainer of $30,000.
Clayton Cheek, Esq., a partner at The Law Offices of Oliver &
Cheek, disclosed in a court filing that his firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached through:
Clayton W. Cheek, Esq.
The Law Offices of Oliver & Cheek, PLLC
P.O. Box 1548
New Bern, NC 28563
Tel: (252) 633-1930
Fax: (252) 633-1950
Email: clayton@olivercheek.com
About Oak-Bark Corporation
Oak-Bark Corporation owns five properties in Riegelwood, NC having
a total current value of $1.66 million.
Oak-Bark Corporation filed its voluntary petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. E.D.N.C. Case No.
23-03351) on November 17, 2023. The petition was signed by William
E. Oakley as chairman, Oak-Bark Corporation. At the time of filing,
the Debtor estimated $3,424,421 in assets and $190,422 in
liabilities.
Judge Joseph N. Callaway presides over the case.
George M. Oliver, Esq. at The Law Offices Of Oliver & Cheek, PLLC
represents the Debtor as counsel.
OFFICE PROPERTIES: Moody's Lowers CFR to 'Caa1', Outlook Negative
-----------------------------------------------------------------
Moody's Investors Service downgraded Office Properties Income
Trust's ("OPI") Corporate Family Rating to Caa1 from B2, senior
unsecured debt ratings to Caa1 from B2 and senior unsecured shelf
rating to (P)Caa1 from (P)B2. The speculative grade liquidity
rating is unchanged at SGL-4. The rating outlook is negative.
Previously, the ratings were on review for downgrade.
The rating actions reflect the office REIT's high financial
leverage and liquidity challenges as it faces significant upcoming
debt maturities.
The negative outlook reflects OPI's weak financial flexibility as
it is reliant on secured financings and asset sales as it seeks to
refinance upcoming debt maturities, which will likely weaken the
size and quality of its unencumbered asset pool. Other
considerations include the REIT's mixed asset quality and
challenging capital market conditions for commercial real estate,
factors that are weakening its capacity to execute well-priced
financing terms.
Governance considerations are a key driver of the rating actions.
Moody's revised OPI's ESG Credit Impact Score (CIS) to CIS-5 from
CIS-4 and Governance Issuer Profile Score (IPS) to G-5 from G-4 due
to the REIT's weakening liquidity, high leverage, and risks
associated with its external management structure. Moody's also
changed the company's governance sub-factor score for financial
strategy and risk management to 5 from 4, as well the sub-factor
score for organizational structure to 4 from 3, for these same
reasons.
RATINGS RATIONALE
OPI's Caa1 CFR and Caa1 senior unsecured rating reflect its high
financial leverage, operating risks, and weak liquidity. As of
third quarter 2023, OPI had $200 million drawn on its $750 million
unsecured credit facility that expires on 31 January 2024. Moody's
expects OPI will refinance this facility before its maturity, but
will incur significantly weaker terms including higher pricing,
reduced size, and the contribution of collateral.
OPI's large unencumbered asset portfolio provides good capacity for
secured financing as it negotiates terms of a new revolver and
looks to refinance $350 million of bonds that mature in May 2024.
However, as the REIT increases secured debt levels, it will need to
do so while remaining within the limits set forth in its bond
covenants, including an unencumbered asset test that requires it
maintain unencumbered assets of at least 1.5x the amount of
unsecured debt. This calculation was 2.062x as of third quarter
2023 and will likely decline with 2024 capital raises, which will
leave very little additional secured debt capacity and prompt the
REIT to seek other capital alternatives in order to address its
$650 million notes that mature in February 2025.
Additional credit challenges include OPI's high leverage, mixed
asset quality and difficult office leasing conditions due to a weak
macroeconomic environment and the evolving transition to a hybrid
work environment. Debt reduction will be challenging and depend on
the REIT's ability to execute targeted asset sales (in a difficult
transaction environment for office real estate) and leasing
activity as it has 29% of annualized rental income expiring through
2025. Moody's also views OPI's external management structure as a
credit challenge, creating potentially significant conflicts of
interest between investors and management.
Positive credit considerations include OPI's size, with about $4
billion of gross assets, good quality tenant roster with a high
percentage of investment grade-rated tenants, and adequate fixed
charge coverage.
OPI's SGL-4 rating reflects the REIT's reliance on external capital
as Moody's considers its funding needs over the next eighteen
months.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
OPI's ratings could be downgraded should the REIT experience poor
execution on 2024 capital raises and fail to retain adequate
financial flexibility in advance of its 2025 debt maturity. An
upgrade is unlikely given the negative outlook, but longer term
would reflect stable operating metrics and execution of asset sales
used for leverage reduction.
Office Properties Income Trust is a real estate investment trust
that owns and operates office buildings in select markets
throughout the United States. Gross assets exceeded $4 billion as
of third quarter 2023.
The principal methodology used in these ratings was REITs and Other
Commercial Real Estate Firms published in September 2022.
ORLANDO VIEWS: 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 Orlando Views, LLC, according to court dockets.
About Orlando Views
Orlando Views, LLC operates in the traveler accommodation industry.
The company is based in Orlando, Fla.
Orlando Views filed Chapter 11 petition (Bankr. M.D. Fla. Case No.
23-04543) on Oct. 30, 2023, with $10 million to $50 million in both
assets and liabilities. Lazer Derbarmdiger, manager, signed the
petition.
Judge Tiffany P. Geyer oversees the case.
R. Scott Shuker, Esq., at Shuker & Dorris, P.A. represents the
Debtor as legal counsel.
OU MEDICINE: Moody's Alters Outlook on 'Ba3' Rating to Positive
---------------------------------------------------------------
Moody's Investors Service has revised the outlook for OU Medicine,
Inc. (now OU Health, OUH) (OK) to positive from negative and
affirmed the Ba3 rating. OUH had $1.5 billion of outstanding debt
at FYE 2023.
The outlook revision to positive from negative reflects expected
operating improvement in fiscal 2024 and 2025 from new material
Medicaid and state funding sources as well as volume growth, which
will stabilize weak liquidity and reduce the risk of a covenant
breach.
RATINGS RATIONALE
Affirmation of the Ba3 reflects strong governance ties and
demonstrable financial support from the State of Oklahoma and The
University Hospital's Trust (the Trust), OUH's sole corporate
member. These closely aligned public bodies will continue to
provide or facilitate significant funds for capital and operating
purposes. OUH's position as the sole academic medical center in
state and close alignment with its faculty practice plan will
underpin strategies to grow high acuity services in a very
competitive market. Nevertheless, OUH will be increasingly reliant
on supplemental funding from the state to compensate for
permanently higher labor costs. Liquidity will likely remain weak
and highly variable for several years. While expected to improve,
both operating and balance sheet leverage will be high.
RATING OUTLOOK
The positive outlook reflects 7-8% operating cashflow margins and
40-60 days cash on hand by fiscal year end 2024 and further
improvement in both metrics in 2025 once the Medicaid directed
payment program is in place. These assumptions would provide
adequate headroom to covenants.
FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS
- Achievement of fiscal 2024 budgeted cashflow margin and
likelihood of further improvement in fiscal 2025
- Sustained growth in liquidity
- Reduction in balance sheet and operating leverage
FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS
- Inability to improve cashflow margin in fiscal 2024 to about 7%
- Cash on hand below 40 days at fiscal yearend 2024
- Adverse change in relationships with the state or related
entities
- Incremental leverage or weakening of current leverage metrics
LEGAL SECURITY
OU Medicine, Inc. is the borrower and sole member of the obligated
group. OU Medicine, Inc. owns (in the case of Oklahoma Children's
Hospital leases) and operates the three hospitals and clinics whose
assets and operations are included in the obligated group. OU
Health Partners, the faculty practice plan, is currently not part
of the obligated group. Security for the bonds includes
unrestricted receivables and a mortgage on certain property
(including University of Oklahoma Medical Center and Edmond Medical
Center). The MTI allows for a replacement master indenture if
certain rating and financial tests are met.
PROFILE
OU Medicine is a system of three acute care hospitals, an
ambulatory surgery center, and other related clinics, and includes:
University of Oklahoma Medical Center and Oklahoma Children's
Hospital in Oklahoma City, and Edmond Medical Center in Edmond, OK.
The hospitals serve as teaching and training facilities for
students enrolled at the University of Oklahoma Health Sciences
Center. Effective July 1, 2021, OUM combined with OU Physicians,
the faculty practice plan, to form OU Health.
METHODOLOGY
The principal methodology used in these ratings was Not-For-Profit
Healthcare published in December 2018.
PACTIV EVERGREEN: Moody's Hikes CFR to B1, Outlook Remains Stable
-----------------------------------------------------------------
Moody's Investors Service upgraded Pactiv Evergreen Inc.'s (Pactiv)
corporate family rating to B1 from B2, probability of default
rating to B1-PD from B2-PD and speculative grade liquidity rating
(SGL) to SGL-1 from SGL-2. Moody's affirmed Pactiv Evergreen Group
Holdings Inc's backed senior secured first lien term loan B, senior
secured revolving credit facility, and senior secured term loan B
rating at B1. Pactiv Evergreen Group Issuer Inc's backed senior
secured notes rating have also been affirmed at B1. The outlooks
for Pactiv, Pactiv Evergreen Goup Holdings Inc., and Pactiv
Evergreen Group Issuer Inc are maintained at stable.
The upgrade of Pactiv's CFR to B1 reflects evidence of the
company's progress and commitment in reducing leverage and
maintaining more conservative financial policies going forward.
"Management's commitment and execution in reducing leverage has
positively impacted credit metrics and the company's overall credit
profile," said Scott Manduca, Vice President at Moody's.
RATINGS RATIONALE
The upgrade to B1 CFR is supported by Pactiv's credit profile
improvement. Pactiv's debt leverage (Moody's adjusted) is expected
to trend in the low to mid 4x's area into 2024 due to management's
commitment to lower leverage. Resulting interest coverage will
strengthen to the mid-3x's area. The beverage merchandise
restructuring remains on track and capital expenditures are
manageable at near 5% of revenue.
Pactiv benefits from its scale (revenue) and holds a leading market
position in the fragmented North American food and beverage
packaging industry. The company produces upwards of 14,000 products
that range from food containers, plates and bowls, hot and cold
cups, and lids. Pactiv is also a one-stop-shop for foodservice
distributors, supermarkets, quick service restaurants, and food and
beverage retailers. The company's end markets are relatively stable
and its product mix differentiated with the inclusion of recyclable
material. Pactiv also maintains long tenured relationships with
Tier 1 customers in the food packaging industry.
Pactiv Evergreen Group Holdings Inc. and Pactiv Evergreen Group
Issuer Inc's B1 secured debt ratings are in line with Pactiv's B1
CFR, as secured debt represents the preponderance of debt in the
capital structure. With the upgrade to the B1 CFR, upward notching
support previously provided to the senior secured debt from the
unsecured debt in the capital structure has diminished, and as
such, no longer supports the use of an override in Moody's LGD
modeling analysis.
Pactiv's SGL-1 Speculative Grade Liquidity Rating reflects Moody's
expectation that the company will maintain very good liquidity over
the next twelve months, with positive free cash flow generation,
and good revolver availability.
ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS
Governance considerations are material to the rating action. The
company has a near-term public leverage target of net debt/EBITDA
in the low 4x's area and has already executed over $500 million of
debt reduction thus far in 2023 to reach this goal. The company's
priority and focus going forward is to reduce debt.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if debt-to-EBITDA is sustained below
4.5x, EBITDA-to-interest expense is above 4x, and free cash
flow-to-debt is above 5%.
The ratings could be downgraded if debt-to-EBITDA is sustained
above 5.5x, EBITDA-to-interest expense is below 3.0x, and there is
deterioration in operating performance and liquidity.
Based in Lake Forest, IL, Pactiv Evergreen Inc. is a publicly
traded company on the NASDAQ with the symbol (PTVE), and is
controlled by financier Graeme Hart.
The principal methodology used in these ratings was Packaging
Manufacturers: Metal, Glass and Plastic Containers published in
December 2021.
PARK NORTH 1: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: Park North 1 LLC
220 East 117th Street
New York, NY 10034
Chapter 11 Petition Date: November 30, 2023
Court: United States Bankruptcy Court
Southern District of New York
Case No.: 23-11904
Judge: Hon. Michael E. Wiles
Debtor's Counsel: Gabriel Del Virginia, Esq.
LAW OFFICES OF GABRIEL DEL VIRGINIA
30 Wall Street 12th Floor
New York, NY 10005
Tel: 212-371-5478
E-mail: gabriel.delvirginia@verizon.net
Estimated Assets: $0 to $50,000
Estimated Liabilities: $100,001 to $500,000
The petition was signed by Eric Brown as managing member.
A full-text copy of the amended petition is available at
https://www.pacermonitor.com/view/INBJNSQ/Park_North_1_LLC__nysbke-23-11904__0002.0.pdf?mcid=tGE4TAMA
PEAK TAHOE: Seeks to Hire Peak Tahoe Realty as Real Estate Broker
-----------------------------------------------------------------
Peak Tahoe, LLC seeks approval from the U.S. Bankruptcy Court for
the District of Nevada to employ Peak Tahoe Realty LLC as its real
estate broker.
The firm will market and sell the Debtor's real property, a
partially completed 41 unit condominium project located at 323
Tramway Drive, Stateline, NV 89449.
The broker shall receive a commission of 3 percent of the gross
sales price.
As disclosed in the court filings, the broker represents no
interest adverse to the estate.
The firm can be reached through:
Robert Leach
Peak Tahoe Realty LLC
323 Tramway Drive
Stateline, NV 89449
Phone: (916) 798-3649
Email: leachotels@gmail.com
About Peak Tahoe
Peak Tahoe LLC, a company in Stateline, Nev., filed its voluntary
petition for Chapter 11 protection (Bankr. D. Nev. Case No.
23-50483) on July 18, 2023, with as much as $10 million to $50
million in both assets and liabilities. Judge Hilary L. Barnes
oversees the case.
Harris Law Practice, LLC serves as the Debtor's bankruptcy counsel.
PENNSYLVANIA REAL ESTATE: Continues Talks with Lender Group
-----------------------------------------------------------
Pennsylvania Real Estate Investment Trust filed with the Securities
and Exchange Commission its Quarterly Report on Form 10-Q
disclosing a net loss of $57,858,000 for the three months ended
September 30, 2023, compared to a net loss of $71,343,000 for the
same period in 2022.
For the nine months ended September 30, 2023, the Company incurred
a net loss of $149,208,000 compared to a net loss of $115,331,000
for the nine months ended September, 30, 2022.
PREIT stated, "We have determined that there is substantial doubt
about our ability to continue as a going concern."
"In evaluating whether there are conditions or events, considered
in the aggregate, that raise substantial doubt about our ability to
continue as a going concern within [the next 12 months], management
considered among other factors, our Credit Agreements . . . with a
maturity date in December 2023 and Fashion District Philadelphia's
Amended and Restated Term Loan Agreement which matures in January
2024 as events or conditions that raised substantial doubt about
our ability to continue as a going concern."
"As of September 30, 2023, we had borrowings of $305.7 million
under the First Lien Term Loan, $713.7 million under the Second
Lien Term Loan and $99.4 million under the First Lien Revolving
Facility. Our obligations under the Credit Agreements are
guaranteed by certain of our subsidiaries. Our obligations under
the Credit Agreements and the guaranties are secured by mortgages
and deeds of trust on a portfolio of 10 of our subsidiaries'
properties, including nine malls and one additional parcel. The
obligations are further secured by a lien on substantially all of
our personal property pursuant to collateral agreements and a
pledge of substantially all of the equity interests held by us and
the guarantors, pursuant to pledge agreements, in each case subject
to limited exceptions. The Credit Agreements include several events
of default. Upon the occurrence of an event of default (except with
respect to bankruptcy), the lenders may declare all of the
obligations in connection with the applicable Credit Agreement
(including an amount equal to the outstanding letters of credit
under the First Lien Credit Agreement) immediately due and payable
and may terminate the lenders' commitments thereunder."
"The Company will not be able to satisfy its obligations when the
borrowings under the Credit Agreements come due and payable in
December 2023 (or earlier upon acceleration after an event of
default). The Company has been working with PJT Partners, a global
advisory investment bank with expertise in real estate and
restructuring, to pursue and evaluate options to address the
Company's upcoming debt maturities and has been actively exploring
a range of strategic alternatives. The Company, through its
advisors, has engaged in discussions and negotiations with certain
members of a lender group under its Credit Agreements with respect
to a potential restructuring transaction. These discussions have
included negotiations of the terms and conditions of a financial
restructuring. Although the Company and the members of the lender
group have been working toward an agreement on certain terms and
conditions of a Restructuring, there can be no assurance that we
will reach a binding agreement regarding terms of a Restructuring
in a timely manner, on terms that are attractive to us, or at all.
The Company expects to continue to provide quality service without
interruption and to work with its business partners as usual during
the course of these discussions and any potential transactions."
"The FDP Loan Agreement has a balance of $73.3 million as of
September 30, 2023, and matures in January 2024. The Company
guarantees 50% of the joint venture's obligations under the FDP
Loan Agreement. The Company plans to work with its joint venture
partner to satisfy any obligations under the FDP Loan Agreement
should it come due and payable at maturity. However, our ability to
satisfy obligations under the FDP Loan Agreement depends primarily
on the availability of our credit facility at the time of the FDP
Loan Agreement maturity date and this involves performance by third
parties and therefore cannot be considered probable of occurring."
A full-text copy of the Form 10-Q is available at
https://tinyurl.com/3z45c4md
About Pennsylvania Real Estate
Pennsylvania Real Estate Investment Trust is a Pennsylvania
business trust founded in 1960 and one of the first equity real
estate investment trusts ("REITs") in the United States. It has a
primary investment focus on retail shopping malls located in the
eastern half of the United States, primarily in the Mid-Atlantic
region. PREIT currently owns interests in 23 retail properties, of
which 22 are operating properties and one is a development
Property.
PREIT reported a net loss of $150.57 million in 2022 following a
net loss of $135.87 million in 2021.
As September 30, 2023, PREIT has $1,717,955,000 in total assets and
$1,994,045,000 in total liabilities.
Philadelphia, Pennsylvania-based BDO USA, LLP, PREIT's auditor
since 2022, issued a "going concern" qualification in its report
dated March 27, 2023, citing that PREIT has two secured credit
agreements maturing in December 2023 which raises substantial doubt
about its ability to continue as a going concern.
PERSONALIZED HEALTH: Hires Neeleman Law Group as Legal Counsel
--------------------------------------------------------------
Personalized Health Solutions, LLC seeks approval from the U.S.
Bankruptcy Court for the Western District of Washington to employ
Neeleman Law Group as its legal counsel.
The firm's services include:
a. assisting the Debtor in the investigation of the financial
affairs of the estate;
b. providing legal assistance to the Debtor with respect to
matters relating to its Chapter 11 case and creditor distribution;
c. preparing pleadings; and
d. providing other necessary legal services.
The firm's hourly rates are as follows:
Principals $550 per hour
Associate $450 per hour
Paralegal $200 per hour
Neeleman received a retainer of $6,738, a portion of which was used
to pay the filing fee in the amount of $1,738.
Jennifer Neeleman, Esq., a principal at Neeleman Law Group,
disclosed in a court filing that he is a "disinterested person"
pursuant to Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Jennifer L. Neeleman, Esq.
NEELEMAN LAW GROUP, P.C.
1403 8th Street
Marysville, WA 98270
Tel: (425) 212-4800
Fax: (425) 212-4802
Email: courtmail@expresslaw.com
About Personalized Health Solutions, LLC
Personalized Health Solutions, LLC sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. W.D. Wash. Case No.
23-11971-CMA) on October 16, 2023. In the petition signed by Kerry
Gustafson, managing member, the Debtor disclosed up to $100,000 in
assets and up to $1 million in liabilities.
Thomas D. Neeleman, Esq., at Neeleman Law Group, P.C., represents
the Debtor as legal counsel.
PLANET HOME: Moody's Affirms 'B2' CFR, Outlook Remains Stable
-------------------------------------------------------------
Moody's Investors Service has affirmed the B2 corporate family
rating and B1 senior secured first lien bank credit facilities
ratings of Planet Home Lending, LLC. Moody's maintained the stable
outlook.
RATINGS RATIONALE
The affirmation of Planet Home's B2 CFR reflects the company's
solid profitability despite the tough conditions for residential
mortgage lenders and its growing franchise in the US residential
mortgage market. In Q3 2023, the company was the 11th largest
mortgage originator and the third largest correspondent originator.
As the company continues to grow, its current capitalization levels
increasingly weigh on the company's credit profile. The ratings
also consider the operational risks stemming from the company's
rapid expansion and its above peer-average encumbered balance
sheet, which limits the company's resilience to unexpected
liquidity needs.
The B1 senior secured bank credit facility rating is based on the
B2 CFR and takes into account the senior secured term loan's first
lien priority interest in the company's Government National
Mortgage Association (GNMA) mortgage servicing rights (MSRs). This
rating is derived from the application of Moody's Loss Given
Default for Speculative-Grade Companies methodology, which factors
in the priority of the debt claim and the robustness of asset
coverage.
The company's capitalization, as measured by tangible common equity
to adjusted tangible managed assets, excluding GNMA delinquent
loans from the denominator, declined to approximately 10.4% as of
September 30, 2023 from 11.0% as of year-end 2022 and 14.2% as of
year-end 2021. The lower capitalization was driven by continued
debt-financed acquisitions of MSRs and higher seasonal usage of
warehouse lines to fund mortgage originations. Moody's expect
capitalization will increase over the next several quarters and
remain above 12% even during the second and third quarters, when
capitalization typically declines due to higher seasonal
loans-held-for-sale balances due to higher seasonal purchase
originations.
Planet Home remains highly reliant on secured financing
arrangements, which encumber its balance sheet and constrain its
liquidity. Independent of the CFR, additional senior secured
financing of MSRs could also place downward rating pressure on
Planet Home's B1 senior secured debt rating. The priority debt
claim is supported by the company's senior unsecured debt and the
level of asset coverage. As a result, additional senior secured
financing without a commensurate increase in unsecured debt could
result in a lower senior secured debt rating.
Positively, Planet Home's profitability as measured by net income
to total managed assets in the first nine months of 2023
(annualized) was solid at 2.0%, an improvement from the 0.3% in
2022 when mortgage rates began to rise and origination volume fell.
Earnings have been supported by the company's growing MSR
portfolio, hedging strategy, and resilient origination volume in a
difficult mortgage market. Moody's expects industry profitability
to be modestly higher in 2024 versus 2023.
Planet Home has grown very rapidly over the last several years,
both organically and through acquisitions. The company has
primarily relied on short-term repurchase facilities to finance new
originations and a secured MSR facility to finance its growing
portfolio of MSRs through flow and bulk purchases. In 2022, Planet
Home also acquired certain assets of Home Point Financial
Corporation's correspondent channel. The rapid growth is credit
negative due to the associated operational risks. Moreover,
acquired MSRs, which are financed by secured credit facilities,
place downward pressure on capitalization levels and increase
levels of secured financing.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Factors that could lead to an upgrade
The ratings could be upgraded if the company materially increases
its capitalization levels, such as a sustained increase in its
tangible common equity to tangible managed assets to 17.5% or
higher, as well as reduces its reliance on secured MSR facilities
and maintains its solid profitability with net income to total
managed assets of more than 2.5%.
Factors that could lead to a downgrade
The ratings could be downgraded if the company's capitalization
does not strengthen over the next several quarters with its
tangible common equity to tangible managed assets ratio increasing
and expected to remain above 12%, even during the second and third
quarters of each year when capitalization typically declines due to
higher seasonal loans-held-for-sale balances due to higher seasonal
purchase originations. The ratings could also be downgraded if
profitability deteriorates whereby net income to total managed
assets falls and is expected to remain below 1.0% for an extended
period. In addition, the company's current high level of encumbered
assets and modest liquidity flexibility puts downward pressure on
the company's ratings. Planet Home's long-term senior secured debt
rating could be downgraded if its ratio of secured debt to
unsecured debt remains above 6 to 1.
The principal methodology used in these ratings was Finance
Companies Methodology published in November 2019.
POLARIS OPERATING: $3MM DIP Loan from Mesa Vista Has Final OK
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas,
Houston Division, authorized Polaris Operating, LLC and affiliates
to obtain post-petition financing on a final basis.
The Debtors obtained postpetition financing on a superpriority
basis consisting of a $3 million term loan facility from Mesa Vista
Operating, LLC to be used to fund their working capital and
liquidity needs and other uses as provided for in the DIP Credit
Agreement.
The DIP facility is due and payable through the earliest to occur
of:
(a) January 15, 2024, provided the date may be extended in
writing by three months at the sole and absolute discretion of the
DIP Lender;
(b) The effective date of a plan of reorganization;
(c) The date on which the DIP Obligations become due and
payable pursuant to the DIP Loan Documents, whether by acceleration
or otherwise;
(e) The date of consummation of a sale of all or substantially
all of the Debtors' assets under 11 U.S.C. section 363;
(f) The date of conversion of any of the Chapter 11 Cases to a
case under Chapter 7 of the Bankruptcy Code unless otherwise
consented to in writing by the DIP Lender; and
(h) The date of dismissal or closing of any of the Chapter 11
Cases.
The Debtors are required to comply with these milestones:
1. Obtain approval of Mesa Vista Operating, LLC as a Stalking
Horse Bidder by November 21, 2023;
2. Obtain approval of bid protections and procedures in form
and substance acceptable to the DIP Lender by November 21, 2023;
3. Submit bids by December 8, 2023;
4. Hold an auction by December 13, 2023;
5. Obtain entry of an order approving the sale of the Mesa
Vista assets under 11 U.S.C. section 363 in form and substance
acceptable to the DIP Lender by December 20, 2023; and
6. Close the sale of the Mesa Vista assets and pay off all
outstanding amounts under the DIP Facility in full in cash by
January 15, 2024.
On September 2, 2020, CCCB Energy Partners, LLC entered into a Loan
Agreement with Vista Bank. Vista Bank agreed to lend CCCB up to $29
million pursuant to the Main Street Lending Program. Vista Bank's
funding was contingent on its receipt of a Commitment Letter from
the Federal Reserve Bank of Boston in which the Federal Reserve
would purchase a participation interest in the principal amount of
Vista Bank's loan in an amount equal to 95%. CCCB's obligations arc
guaranteed by each of CCCB's direct and indirect subsidiaries that
arc Debtors in addition to Michael L. Chistc and Christopher T.
Czuppon. The Loan Agreement provides for a senior secured loan
secured by a blanket all-asset lien.
As of the Petition Date, CCCB and the Guarantors were indebted to
the Prepetition Lender in the amount of not less than $30.2
million.
As adequate protection, the Secured Lenders are granted valid,
automatically perfected and enforceable additional adequate
protection replacement liens in accordance with the priority of the
applicable Secured Lenders' prepetition security interests and
liens and subject to the Carve-Out and only in collateral of the
same type as such Secured Lender has a valid prepetition lien.
To the extent of any Diminution in Value, each Secured Lender is
granted valid, automatically perfected and enforceable additional
adequate protection replacement liens, in accordance with the
priority of the applicable Secured Lender's prepetition security
interests and liens and subject to the Carve-Out and only in
collateral of the same type as such Secured Lender has a valid
prepetition lien.
Subject to the Carve-Out, and to the extent of any Diminution in
Value, the Secured Lenders are further granted an allowed
superpriority administrative expense claim as provided and to the
full extent allowed by 11 U.S.C. Sections 503(b) and 507(b), with
priority over all administrative expense claims and unsecured
claims against the Debtor and its estate, now existing or hereafter
arising, of any kind or nature whatsoever.
These events constitute an "Event of Default":
(a) Failure to perform, in any respect, any of the terms,
provisions, conditions, covenants, or obligations under the DIP
Order or should anything described in the DIP Order as an "Event of
Default" occur;
(b) Failure to timely pay any DIP Lender expense or other DIP
Obligation;
(c) Granting or permitting to exist any lien on any DIP
Collateral, other than the DIP Liens, Prepetition Liens, Adequate
Protection Liens and Permitted Prior Senior Liens;
(d) Failure to satisfy any of the milestones within two
business days of its stated deadline.
A copy of the order and the Debtor's budget is available at
https://urlcurt.com/u?l=cNx3XR from PacerMonitor.com.
The Debtor projects total expenses, on a weekly basis, as follows:
$448,975 for the week ending December 1, 2023;
$772,525 for the week ending December 8, 2023;
$42,107 for the week ending December 15, 2023;
$281,159 for the week ending December 22, 2023;
$74,314 for the week ending December 29, 2023;
$690,685 for the week ending January 5, 2024;
$1,091,056 for the week ending January 12, 2024;
$182,890 for the week ending January 19, 2024; and
$1,949,184 for the week ending January 26, 2024.
About Polaris Operating, LLC
Polaris Operating, LLC and affiliates are privately held
independent oil and gas companies focused on acquiring, optimizing
and developing conventional oil and gas properties with
re-development and new development opportunities. Their core area
of operations is in the Texas Panhandle, specifically in Moore,
Potter and Roberts counties, where they own and operate hundreds of
shallow oil and gas wells with a significant amount infrastructure
including gathering systems, power lines, disposal wells, workover
rigs and water trucks.
Polaris Operating and its affiliates sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead Case
No. 23-32810) on July 28, 2023. In the petition signed by
Christopher Czuppon, chief executive officer, the Debtor disclosed
up to $50 million in both assets and liabilities.
Judge Christopher M. Lopez oversees the case.
Okin Adams Bartlett Curry LLP represents the Debtors as counsel.
Donlin, Recano & Company, Inc. is the notice, claims and balloting
agent. Stout Risius Ross, LLC serves as the Debtors' restructuring
advisors. Stout's Douglas J. Brickley serves as the Debtors' Chief
Restructuring Officer. SP Securities, LLC serves as the Debtors'
investment banker.
Hunton Andrews Kurth LLP, and Munsch Hardt Kopf & Harr, P.C.,
advise Vista Bank, the Prepetition Lender.
POTRERO MEDICAL: Court OKs $2.5MM DIP Loan from Potrero Lender
--------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware authorized
Potrero Medical, Inc. to use cash collateral and obtain
postpetition financing, on an interim basis.
The Debtor obtained senior secured postpetition financing in an
aggregate principal amount not to exceed $2.5 million from a
consortium of lenders and Potrero Lender LLC, a Delaware limited
liability company, as Lender and administrative agent for the
benefit of the Lenders.
Under the Interim Order, the Debtor is permitted to borrow an
aggregate principal amount of $1 million under the DIP Facility.
The DIP Facility is due and payable through the earlier of:
(a) the date which is 75 days following the Petition Date;
(b) the effective date of a plan of reorganization in the
Case;
(c) the date of filing or support by the Debtor of a plan of
reorganization other than the plan contemplated by the
Restructuring Agreement;
(d) entry of an order by the Bankruptcy Court converting the
Case to a case under Chapter 7 of the Bankruptcy Code;
(e) entry of a final order by the Bankruptcy Court dismissing
the Case; or
(f) the date of termination of the DIP Loan Facility and the
acceleration of any outstanding extensions of credit under the
Loans in accordance with the terms of the DIP Credit Agreement.
Interest will accrue daily, at a rate equal to 8% per annum from
November 28, 2023 until the Maturity Date.
The Debtor is required to comply with these milestones:
(i) Commence the Case no later than November 21, 2023.
(ii) File with the Bankruptcy Court no later than one business
day after commencement of the Case: (a) a motion for entry of the
Interim Order and the Final Order; (b) a motion to enter into the
Restructuring Agreement; (c) a motion to set the general claims bar
date; and (d) such other first day papers as may be approved or
requested by the Agent.
(iii) File the Plan with Bankruptcy Court no later than December
1, 2023.
(iv) The Bankruptcy Court must enter the Final Order no later
than December 27, 2023.
(v) The Bankruptcy Court must enter an order approving the
Restructuring Agreement no later than December 27, 2023.
(vi) The Bankruptcy Court must confirm the Plan no later than
February 2, 2024.
(vii) The Effective Date of the Plan must occur no later than
February 5, 2024.
As of the Petition Date, the Debtor has secured indebtedness of not
less than $500,000, exclusive of accrued and unpaid interest, fees
and expenses owing under the Promissory Note dated November 16,
2023 issued by the Debtor in favor of Potrero Lender LLC.
The Debtor requires the use of cash collateral and obtain
postpetition financing to continue operations, fund payroll and
operating expenses, and administer and preserve the value of their
estates.
As adequate protection, the Prepetition Lender is granted valid,
perfected, postpetition security interests and liens in and on all
of the DIP Collateral, with a priority subject and subordinate only
to (i) the DIP Liens, (ii) prior payment of the Carve-Out, and
(iii) any Senior Third Party Liens.
These events that constitute an "Event of Default" include:
(a) Failure to Pay. The Borrower or any other Loan Party will
fail to pay (i) the principal amount of the Loans or interest
payment on the applicable due date thereunder, or (ii) any other
payment required under the terms of the Agreement on the date due,
and solely in the case of clause (ii) of this section (a), which
failure continues for five days.
(b) Covenant Default. The Borrower or any other Loan Party
will breach any other covenant contained in the Agreement.
(c) Representation or Warranty. Any representation or warranty
made by the Borrower or any other Loan Party in the Agreement will
be materially incorrect or misleading as of the date such
representation or warranty was made. and
(d) Control Agreements. The Borrower or any other Loan Party
will materially breach any covenant or representation contained in
any Control Agreement or otherwise violate or terminate any Control
Agreement.
A final hearing on the matter is set for December 18, 2023 at 2
p.m.
A copy of the order is available at https://urlcurt.com/u?l=UjPKUH
from PacerMonitor.com.
About Potrero Medical
Potrero Medical Inc. -- https://potreromed.com/ -- is a predictive
health company developing the Next Gen of smart sensors and AI. Its
mission is to protect the kidney.
Potrero Medical sought relief under Subchapter V of Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 23-11900) on Nov.
21, 2023. In the petition filed by Joseph A. Urban, as CEO, the
Debtor reports estimated assets and liabilities between $1 million
and $10 million each.
The Honorable Bankruptcy Judge Laurie Selber Silverstein oversees
the case.
The Debtor is represented by David M. Klauder, Esq., at Bielli &
Klauder, LLC as legal counsel.
PPWC ENTERPRISES: Hires Roderick Linton as Bankruptcy Counsel
-------------------------------------------------------------
PPWC Enterprises, Inc. seeks approval from the U.S. Bankruptcy
Court for the Northern District of Ohio to employ Roderick Linton
Belfance, LLP, as its counsel.
The firm will render these services:
(a) advise the Debtor with respect to its powers and duties in
the continued operation of the business;
(b) advise the Debtor with respect to all bankruptcy matters;
(c) prepare all necessary legal papers;
(d) represent the Debtor at all hearings on matters relating
to its affairs and interests before the bankruptcy court;
(e) prosecute and defend litigated matters that may arise
during the pendency of the Debtor's Chapter 11 case;
(f) advise the Debtor with respect to other legal matters that
may arise during the pendency of the case; and
(g) perform other legal services that are necessary for the
economic and efficient administration of the case.
The hourly rates of the firm's counsel and staff are as follows:
Partner Attorneys $290 - $350
Associate & Of Counsel Attorneys $225 - $290
Paralegals $125 - $165
In addition, the firm will seek reimbursement for expenses
incurred.
The firm received an initial retainer of $6,983 on October 27,
2023.
Steven Heimberger, Esq., an attorney at Roderick Linton Belfance,
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:
Steven J. Heimberger, Esq.
Roderick Linton Belfance, LLP
50 S. Main Street, 10th Floor
Akron, OH 44308
Telephone: (330) 434-3000
Facsimile: (330) 434-9220
Email: sheimberger@rlbllp.com
About PPWC Enterprises
PPWC Enterprises, Inc. filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. N.D. Ohio Case No.
23-51524) on Nov. 1, 2023, with up to $50,000 in assets and up to
$500,000 in liabilities. LaCora M. Turner-Murphy, president, signed
the petition.
Judge Alan M. Koschik oversees the case.
Steven J. Heimberger, Esq., at Roderick Linton Belfance, LLP,
represents the Debtor as legal counsel.
PREDICTIVE TECHNOLOGY: Taps CFO Solutions as CRO and Accountant
---------------------------------------------------------------
Predictive Technology Group, Inc. seeks approval from the U.S.
Bankruptcy Court for the District of Utah to hire CFO Solutions LC
dba Ampleo as chief restructuring officer and accountant.
The firm will be paid at these rates:
Matt McKinlay $325/hr
Paul Judge $250/hr
Amber Booth $100/hr
As disclosed in court filings, CFO Solutions is a "disinterested
person" pursuant to Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Matt McKinlay
CFO Solutions, LC, dba Ampleo
3300 Triumph Blvd Suite 100
Lehi, UT 84043
Tel: (801) 590-7791
About Predictive Technology Group, Inc.
Predictive Technology develops and commercializes discoveries and
technologies involved in novel molecular diagnostic, therapeutic,
and Human Cellular and Tissue-Based Products.
Predictive Technology Group, Inc. filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. D. Utah Case
No. 23-25147) on November 9, 2023. The petition was signed by
Bradley C. Robinson as CEO and president. At the time of filing,
the Debtor estimated $1 million to $10 million in both assets and
liabilities.
Judge Peggy Hunt presides over the case.
T. Edward Cundick, Esq. at WORKMAN NYDEGGER represents the Debtor
as counsel.
PREMIER KINGS: Court OKs Bid Rules for Sale of Burger King Stores
-----------------------------------------------------------------
A U.S. bankruptcy judge overseeing the Chapter 11 cases of Premier
Kings, Inc. and its affiliates approved the bid procedures for the
sale of the companies' Burger King stores.
In her order, Judge Tamara Mitchell of the U.S. Bankruptcy Court
for the Northern District of Alabama said the bid procedures
"represent the best method for maximizing the value of the
[companies' estates], considering the size and nature of the
proposed sales."
The companies are selling 75 Burger King stores at the auction
scheduled for Dec. 4, at 10:00 a.m. (Central). The auction will be
conducted at the offices of Holland & Knight, LLP, the companies'
legal counsel.
The companies had earlier received two separate offers from RRG of
Jacksonville, LLC and Newell-Berg Alliance AL, LLC.
RRG offered $15.525 million, plus the inventory value at closing,
to purchase 44 stores in Savanna, Ga., and Jacksonville, Fla.
Meanwhile, Newell-Berg made an $18.5 million offer, plus the value
of inventory at closing, for 31 stores in the North Alabama Region.
Both will serve as the stalking horse bidders at the auction.
A sale hearing is set for Dec. 11. Objections to the sale are due
by Dec. 6.
About Premier Kings
Premier Kings, Inc. and affiliates are the owners and operators of
174 operating Burger King franchise locations.
The Debtors sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ala. Lead Case No. 23-02871) on Oct.
25, 2023. At the time of the filing, Premier Kings reported $10
million to $50 million in assets and $50 million to $100 million in
liabilities.
Judge Tamara O. Mitchell oversees the cases.
The Debtors tapped Cole Schotz, PC as the lead counsel; Holland &
Knight, LLP as local bankruptcy counsel; Raymond James &
Associates, Inc. as investment banker; and Kurtzman Carson
Consultants, LLC as noticing and claims agent.
On Nov. 6, 2023, the U.S. Bankruptcy Administrator for the Northern
District of Alabama appointed an official committee to represent
unsecured creditors in the Debtors' Chapter 11 cases. The committee
is represented by the law firm of Christian & Small, LLP.
QUALITY IRON: Seeks Court Nod to Sell Assets by Auction
-------------------------------------------------------
Quality Iron Fabricators, LLC and its affiliates asked the U.S.
Bankruptcy Court for the Western District of Tennessee for
authority to sell most of their assets to LFM Capital Partners,
L.P. or another buyer with a better offer.
LFM, the companies' senior secured lender, agreed to purchase the
assets through a credit bid in the amount of $9 million and assume
certain liabilities of the companies.
The assets up for sale include real and personal property,
inventory and governmental permits required for operation of the
companies' business.
James Bailey III, Esq., the companies' attorney, said the assets
will be put up for bidding to "maximize value for the [companies']
estates."
The proposed bid process, which is subject to court approval, gives
potential buyers until Dec. 10 to place their bids on the assets.
Each potential buyer must provide a cash offer that exceeds the
aggregate cash consideration set forth in the companies' sale
agreement with LFM by at least $380,000. A cash deposit in the
amount of 10% of the purchase price is also required.
LFM will serve as the stalking horse bidder at the auction
scheduled for Dec. 12, at 10:00 a.m. Central Standard Time. In the
event it is not selected as the winning bidder, LFM will receive a
break-up fee, which is 2% of its bid, and an expense
reimbursement.
The companies will announce the winning bidder and the back-up
bidder through a notice to be filed with the bankruptcy court.
Judge Ruthie Hagan will hold a hearing on Dec. 13 to consider
approval of the sale to the winning bidder. Objections to the sale
are due by Dec. 12, at 12:00 p.m. Central Standard Time.
About Quality Iron Fabricators
Quality Iron Fabricators, LLC and affiliates operate as steel
products manufacturers. The companies are based in Memphis, Tenn.
The Debtors filed Chapter 11 petitions (Bankr. W.D. Tenn. Lead Case
No. 23-25578) on Nov. 10, 2023. In the petition signed by its chief
restructuring officer, Gary M. Murphey, Quality Iron Fabricators
disclosed up to $50,000 in assets and $10 million to $50 million in
liabilities.
Judge Ruthie Hagan oversees the cases.
James E. Bailey III, Esq., at Butler Snow LLP, represents the
Debtors as legal counsel.
QUEST PATENT: Has Going Concern Doubt, Cites Continuing Losses
--------------------------------------------------------------
Quest Patent Research Corporation disclosed in a Form 10-Q Report
filed with the U.S. Securities and Exchange Commission for the
quarterly period ended September 30, 2023 that there is substantial
doubt in its ability to continue as a going concern within the next
12 months.
According to the Company, "We have an accumulated deficit of
approximately $29,132,000 and negative working capital of
approximately $15,133,000 as of September 30, 2023. Because of our
continuing losses, our working capital deficiency, the uncertainty
of future revenue, our obligations to QF3, QFL and Intelligent
Partners, our low stock price and the absence of a trading market
in our common stock, our ability to raise funds in the equity
market or from lenders is severely impaired. These conditions, as
well as any adverse consequences which would result in the event
that we are not able to remain listed on the OTCQB, raise
substantial doubt as to our ability to continue as a going concern
within [the next 12 months]. Our revenue is generated exclusively
from license fees generated from litigation seeking damages for
infringement of our intellectual property rights. Although we may
seek to raise funds and to obtain third-party funding for
litigation to enforce its intellectual property rights, the
availability of such funds is uncertain. The financial statements
do not include any adjustments that might result from the outcome
of this uncertainty."
The Company incurred a net loss of $2,942,297 for the nine months
ended September 30, 2023. This compares to a net loss of $278,918,
for the nine months ended September 30, 2022.
About Quest Patent
Rye, New York-based Quest Patent Research Corporation --
http://www.qprc.com/-- is an intellectual property asset
management company. The Company's principal operations include the
development, acquisition, licensing and enforcement of intellectual
property rights that are either owned or controlled by the Company
or one of its wholly owned subsidiaries. The Company currently
owns, controls or manages eleven intellectual property portfolios,
which principally consist of patent rights.
As of September 30, 2023, Quest Patent has $4,544,427 in total
assets and $16,010,925 in total liabilities.
Quest Patent reported a net loss of $753,516 for the year ended
Dec. 31, 2022, compared to a net loss of $4.15 million for the year
ended Dec. 31, 2021.
Somerset, New Jersey-based Rosenberg Rich Baker Berman, P.A., the
Company's auditor since 2021, issued a "going concern"
qualification in its report dated March 31, 2023, citing that the
Company has suffered recurring losses from operations and has a net
capital deficiency that raises substantial doubt about its ability
to continue as a going concern.
QUEST PATENT: Incurs $833K Net Loss in Third Quarter
----------------------------------------------------
Quest Patent Research Corporation filed with the Securities and
Exchange Commission its Quarterly Report on Form 10-Q disclosing
a net loss of $833,286 on $250,000 of revenues for the three months
ended Sept. 30, 2023, compared to net income of $103,665 on
$275,000 of revenues for the three months ended Sept. 30, 2022.
For the nine months ended Sept. 30, 2023, the Company reported a
net loss of $2.94 million on $452,500 of revenues, compared to a
net loss of $278,918 on $397,000 of revenues for the nine months
ended Sept. 30, 2022.
As of Sept. 30, 2023, the Company had $4.54 million in total
assets, $16.01 million in total liabilities, and a total
stockholders' deficit of $11.47 million.
Quest Patent stated, "The Company has an accumulated deficit of
approximately $29,132,000 and negative working capital of
approximately $15,133,000 as of September 30, 2023. Because of the
Company's continuing losses, its working capital deficiency, the
uncertainty of future revenue, the Company's obligations to
Intelligent Partners, and QFL, the Company's low stock price and
the absence of an active trading market in its common stock, the
ability of the Company to raise funds in the equity market or from
lenders is severely impaired. These conditions, as well as any
adverse consequences which would result from the Company's failure
to meet the continued listing requirements of the OTCQB...raise
substantial doubt as to the Company's ability to continue as a
going concern within one year after the date that these unaudited
condensed consolidated financial statements are issued. The
Company's revenue is generated exclusively from license fees
generated from litigation seeking damages for infringement of the
Company's intellectual property rights. Although the Company may
seek to raise funds and to obtain third-party funding for
litigation to enforce its intellectual property rights, the
availability of such funds is uncertain."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/824416/000121390023086173/f10q0923_questpatent.htm
About Quest Patent
Rye, New York-based Quest Patent Research Corporation --
http://www.qprc.com-- is an intellectual property asset management
company. The Company's principal operations include the
development, acquisition, licensing and enforcement of intellectual
property rights that are either owned or controlled by the Company
or one of its wholly owned subsidiaries. The Company currently
owns, controls or manages eleven intellectual property portfolios,
which principally consist of patent rights.
Quest Patent reported a net loss of $753,516 for the year ended
Dec. 31, 2022, compared to a net loss of $4.15 million for the year
ended Dec. 31, 2021. As of Dec. 31, 2022, the Company had $1.23
million in total assets, $9.79 million in total liabilities, and a
total stockholders' deficit of $8.56 million.
Somerset, New Jersey-based Rosenberg Rich Baker Berman, P.A., the
Company's auditor since 2021, issued a "going concern"
qualification in its report dated March 31, 2023, citing that the
Company has suffered recurring losses from operations and has a net
capital deficiency that raises substantial doubt about its ability
to continue as a going concern.
RED ROOF: Seeks to Hire Tang & Associates as Bankruptcy Counsel
---------------------------------------------------------------
Red Roof Inc. seeks approval from the U.S. Bankruptcy Court for the
Central District of California to employ Tang & Associates as its
general bankruptcy counsel.
The firm will render these services:
(a) advise the Debtor regarding matters of bankruptcy law and
concerning the requirement of the Bankruptcy Code, and Bankruptcy
Rules relating to the administration of this case, and the
operation of the Debtor's estate as a debtor in possession;
(b) represent the Debtor in proceedings and hearings in the
court involving matters of bankruptcy law;
(c) assist in compliance with the requirements of the Office
of the United States trustee;
(d) provide the Debtor legal advice and assistance with
respect to the Debtor's powers and duties in the continued
operation of the Debtor's business and management of property of
the estate;
(e) assist the Debtor in the administration of the estate's
assets and liabilities;
(f) prepare necessary applications, answers, motions, orders,
reports and/or other legal documents on behalf of the Debtor;
(g) assist in the collection of all accounts receivable and
other claims that the Debtor may have and resolve claims against
the Debtor's estate;
(h) provide advice, as counsel, concerning the claims of
secured and unsecured creditors, prosecution and/or defense of all
actions;
(i) prepare, negotiate, prosecute and attain confirmation of a
plan of reorganization; and
(j) provide other legal services.
The firm will be paid at these rates:
Attorneys $400 per hour
Paralegals $200 per hour
The firm will received from the Debtor a retainer of $11,000 and
will also be reimbursed for reasonable out-of-pocket expenses
incurred.
Kevin Tang, Esq., a partner at Tang & Associates, 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 Tang, Esq.
TANG & ASSOCIATES
17011 Beach Blvd, Suite 900
Huntington Beach, CA 92647
Tel: (714) 594-7022
Fax: (714) 594-7024
Email: kevin@tang-associates.com
About Red Roof Inc.
Red Roof Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. C.D. Cal. Case No. 2:23-bk-16844-NB) on
October 19, 2023. In the petition signed by Connie Kim, president,
the Debtor disclosed up to $1 million in both assets and
liabilities.
Kevin Tang, Esq., at Tang and Associates, represents the Debtor as
legal counsel.
RESOURCE FOR EDUCATION: Court OKs Interim Cash Collateral Access
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California,
Santa Ana Division, authorized Resource for Education, Advocacy,
Communication and Housing to use cash collateral on an interim
basis, in accordance with the budget.
The Debtor is permitted to use cash collateral to pay its normal
and customary operating expenses.
The U.S. Small Business Administration has a perfected blanket lien
against the Debtor's personal property assets. On November 21,
2023, the SBA filed a proof of claim, asserting a secured claim for
$158,246.
As of September 30, 2023, the Debtor's collectible Receivables
total approximately $1.1 million.
As of the Petition Date, the Debtor had over $1.4 million deposited
in various accounts at U.S. Bank, N.A.
The Debtor is directed to open the SBA Collateral Account and
deposit $175,000 into that account.
The $175,000 deposited into the SBA Collateral Account will
constitute the SBA's cash collateral. The SBA will have a perfected
lien on the amounts deposited in the SBA Collateral Account without
the need for the SBA to take further action.
The SBA Collateral Account adequately protects the SBA against any
diminution in the value of its pre-petition cash collateral that
may occur as a result of the Debtor's ongoing operations.
A copy of the order is available at https://urlcurt.com/u?l=Zvn4QH
from PacerMonitor.com.
About Resource for Education, Advocacy, Communication and
Housing
Resource for Education, Advocacy, Communication and Housing sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr.
C.D. Cal. Case No. 8:23-bk-12429-SC) on November 17, 2023. In the
petition signed by Adriana Garcia, chief executive officer, the
Debtor disclosed up to $10 million in both assets and liabilities.
Judge Scott C. Clarkson oversees the case.
Matthew W. Grimshaw, Esq., at Marshack Hays Wood LLP, represents
the Debtor as legal counsel.
RUBY-GORDON INC: Bid to Use Cash Collateral Denied
--------------------------------------------------
The U.S. Bankruptcy Court for the Western District of New York
denied the motion to use cash collateral on an ex parte emergency
basis filed by Ruby-Gordon, Inc.
On November 20, 2023, the Debtor used cash collateral to pay
operating expenses totaling $45,033 and, on November 27, 2023, the
Debtor made a further use of cash collateral to pay operating
expenses totaling $103,296, says the Court. There is no indication
that the entities with an interest in the Debtor's cash collateral
consented to its use; nor has the Court approved its use.
The Application fails, in every respect, to comply with the
requirements of Rule 4001(b)(1)-(3) of the Federal Rules of
Bankruptcy Procedure.
A copy of the order is available at https://urlcurt.com/u?l=cpRUsf
from PacerMonitor.com.
About Ruby-Gordon, Inc.
Ruby-Gordon, Inc. sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. N.Y. Case No. 23-20594) on November
20, 2023. In the petition signed by Aaron Ruby, CEO, the Debtor
disclosed $4,086,868 in assets and $1,425,678 in liabilities.
Judge Paul R. Warren oversees the case.
Raymond C. Stilwell, Esq., at Law Offices of Raymond C. Stilwell,
represents the Debtor as legal counsel.
RUSS NOYES ROOFING: Case Summary & 11 Unsecured Creditors
---------------------------------------------------------
Debtor: Russ Noyes Roofing Inc.
d/b/a Rhino Roofing Inc.
385 Commerce Way #101
Longwood, FL 32750
Business Description: The Debtor is a roofing contractor in
Orlando, Florida, offering professional
installation, repair, and maintenance of
roofs for homes.
Chapter 11 Petition Date: November 30, 2023
Court: United States Bankruptcy Court
Middle District of Florida
Case No.: 23-05063
Debtor's Counsel: Jeffrey S. Ainsworth, Esq.
BRANSONLAW, PLLC
1501 E. Concord Street
Orlando, FL 32803
Tel: 407-894-6834
Fax: 407 894 8559
E-mail: jeff@bransonlaw.com
Total Assets: $183,919
Total Liabilities: $2,563,619
The petition was signed by Russell Leonard Noyes as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 11 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/3NBXX7A/Russ_Noyes_Roofing_Inc__flmbke-23-05063__0001.0.pdf?mcid=tGE4TAMA
SANIBEL REALTY: Unsecureds Will Get 1.0% of Claims over 5 Years
---------------------------------------------------------------
Sanibel Realty Trust, LLC, filed with the U.S. Bankruptcy Court for
the Southern District of Florida a Disclosure Statement in support
of Chapter 11 Plan of Reorganization dated November 27, 2023.
The Debtor is a Florida limited liability company formed in 2011.
Debtor owns and rents, or offers to rent, three Miami-Dade County
residential condominium properties located at (i) 9499 Collins
Avenue, Unit PH06, Surfside, Florida 33179 (the "Spiaggia
Property"); (ii) 9595 Collins Ave., Unit NPHF, Surfside, FL 33179
(the "Solimar Property"); and (iii) 10110 SW 154 Cir. Ct., Unit
108-1, Miami, FL 33186 (the "Hammocks Property").
Debtor's chapter 11 bankruptcy filing in November, 2022 was
precipitated by a foreclosure judgment entered on the Spiaggia
Property, to avoid the imminent judicial foreclosure sale of that
property which Debtor believes has significant equity that can be
realized for the benefit of Debtor's creditors and equity members.
As of October 31, 2023, the amount of Debtor's cash held in its
debtor-in-possession operating accounts totaled $5,478.96. The full
amount of Debtor's Cash on-hand on the Effective Date will vest in
Reorganized Debtor and be available, together with Reorganized
Debtor's property rental income, to fund payment of Allowed Claims
under the Plan.
The secured claim held by the Spiaggia Ocean Condominium
Association, Inc., reflected by proof of claim no. 1-1 in the
amount of $439,084.80 for unpaid pre-petition dues and related
charged owed by Debtor for the Spiaggia Property, was settled and
paid by Debtor's members after the Petition Date.
The total amount of General Unsecured Claims filed against or
scheduled by the Debtor as undisputed, non-contingent and
liquidated (not including duplicate creditors, claims subject to
pending objections and claims disallowed or withdrawn) is
approximately $500,000.00, consisting of approximately $475,000.00
in mortgage deficiency claims (Spiaggia Mortgagee, Solimar
Mortgagee and Hammocks Mortgagee) and the $26,352.11 claim filed by
Internal Revenue Service.
The Plan provides for the emergence of a Reorganized Debtor on the
Effective Date, which will continue Debtor's business operations.
Debtor's available cash and property rental income, with any
shortfall covered by Reorganized Debtor's members to the extent
necessary, will fund payment to allowed creditors in accordance
with the distribution and priority scheme set forth under the
Bankruptcy Code and the terms of the Plan.
Class 5 consists of all General Unsecured Claims. Each holder of an
Allowed General Unsecured Claim shall receive a pro rata
distribution from the $2,500 quarterly payments for the 5 years
following the Effective Date, commencing on the first day of the
first calendar month following the Effective Date, paid by
Reorganized Debtor and guaranteed by Debtor's members. Debtor
estimates that the Allowed amount of General Unsecured Claims in
the Chapter 11 Case will total approximately $500,000, and the
aggregate distribution to each such claimant will total
approximately 1.0%. Class 5 is Impaired.
Class 6 consists of all Equity Interests in Debtor. Holders of
Allowed Equity Interests shall retain their Equity Interests in
Reorganized Debtor from and after the Effective Date of the Plan.
Class 6 is Unimpaired and not entitled to vote on the Plan.
Reorganized Debtor will fund its post-Confirmation quarterly
payment obligations to holders of Class 5 Allowed General Unsecured
Claims, and its monthly note payments on the Class 2 Spiaggia
Mortgagee Secured Claim, from Reorganized Debtor's rental income
generated from the Spiaggia Property. Such Plan obligations shall
be fully guaranteed by Reorganized Debtor's members which will fund
any payment shortfall.
A full-text copy of the Disclosure Statement dated November 27,
2023 is available at https://urlcurt.com/u?l=rk9zop from
PacerMonitor.com at no charge.
Counsel for Debtor:
Nathan G. Mancuso, Esq.
Mancuso Law, P.A.
7777 Glades Rd., Suite 100
Boca Raton, FL 33434
Tel: (561) 245-4705
Fax: (561) 226-2575
Email: ngm@mancuso-law.com
About Sanibel Realty Trust
Sanibel Realty Trust, LLC, a company in Miami, Fla., filed a
petition for relief under Chapter 11 of the Bankruptcy Code (Bankr.
S.D. Fla. Case No. 22-18729) on Nov. 11, 2022. In the petition
filed by its manager, Javier Perez, the Debtor reported between $1
million and $10 million in both assets and liabilities.
Judge Robert A. Mark oversees the case.
The Debtor is represented by Nathan G. Mancuso, Esq., at Mancuso
Law, P.A.
SBG BURGER: Seeks to Hire Underwood Murray as Bankruptcy Counsel
----------------------------------------------------------------
SBG Burger Opco, LLC and its debtor-affiliates filed an amended
application seeking approval from the U.S. Bankruptcy Court for the
Middle District of Florida to employ Underwood Murray, P.A. as
their counsel.
The firm will render these services:
a. advise the Debtors with respect to their responsibilities
in complying with the United States Trustee's Guidelines and
Reporting Requirements and with the rules of the Court;
b. prepare motions, pleadings, orders, applications, adversary
proceedings, and other legal documents necessary in the
administration of this case;
c. protect the interests of the Debtors in all matters pending
before the Court;
d. represent the Debtors in negotiations with their creditors
and in the confirmation of a plan; and
e. other services as required of general bankruptcy counsel in
a chapter 11 bankruptcy case.
The firm will be paid at these rates:
Partners $425 - $625 per hour
Associates $300 - $325 per hour
Paralegal $150 per hour
Underwood Murray received $25,000 from Starboard Group Holdings,
LLC, the 99 percent owner of SBG Burger on April 11, 2023.
Thomas Messana, Esq., an attorney at Underwood Murray, 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:
Thomas M. Messana, Esq.
Scott A. Underwood, Esq.
Megan W. Murray, Esq.
UNDERWOOD MURRAY, PA
100 N. Tampa St., Suite 2325
Tampa, FL 33602
Telephone: (813) 540-8401
Facsimile: (813) 553-5345
Email: tmessana@underwoodmurray.com
sunderwood@underwoodmurray.com
mmurray@underwoodmurray.com
About SBG Burger Opco, LLC
SBG Burger Opco, LLC and affiliates operate 73 Wendy's, 6
McAlister's Deli, 15 Subway, 5 Fuzzy's Taco Shop and 22 CiCi's
Pizza restaurants across Alabama, Florida, Illinois, Missouri,
Louisiana, Wisconsin and Texas. The Debtors sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D. Fla. Lead Case
No. 23-04797) on November 14, 2023.
The Debtors are Starboard Group of Space Coast, LLC; Starboard
Group of Southeast Florida, LLC; Starboard Group of Tampa, LLC;
Starboard Group of Tampa II, LLC; Starboard Group of Alabama, LLC;
7 S & M Foods, LLC; 9 S & M Foods, LLC; 10 S & M Foods, LLC;
Starboard with Cheese, LLC; and SBG Burger Opco, LLC.
In the petition signed by Andrew Levy, manager, lead Debtor SBG
Burger Opco, LLC disclosed up to $50,000 in both assets and
liabilities. SBG Alabama listed $1 billion to $10 billion in
estimated assets and $1 billion to $10 billion in estimated
liabilities. SBG Spacecoast listed $10 million to $50 million in
estimated assets and $1 million to $10 million in estimated
liabilities. SBG Cheese listed $1 million to $10 million in
estimated assets and $1 million to $10 million in estimated
liabilities. SBG Tampa listed $1 million to $10 million in
estimated assets and $1 million to $10 million in estimated
liabilities. SBG SE Florida listed $1 million to $10 million in
estimated assets and $1 million to $10 million in estimated
liabilities.
Scott A. Underwood, Esq., at Underwood Murray, PA, represents the
Debtors as legal counsel.
SCHARN INDUSTRIES: Wins Cash Collateral Access Thru Feb 2024
------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Massachusetts
authorized Scharn Industries, LLC to use cash collateral through
February 14, 2024, on the same terms and conditions as set forth in
the Order dated April 5, 2023.
As previously reported by the Troubled Company Reporter, Diverse
Capital and Cloud Fund, LLC, through its servicing agent Delta
Bridge Funding LLC, assert an interest in the Debtor's cash
collateral.
The Court said the Debtor may only use the cash collateral for the
expenses and purposes set forth in the further budget submitted on
November 21, 2023, excluding any fees and expenses for legal or
professional fees. As provided in the Interim Orders and set forth
at the hearing, the Debtor is limited to the amounts for expenses
set forth in the budget, subject to no more than a 10% variance in
the total expenses in any month.
The Debtor is directed to file by February 9, 2023, (i) a
reconciliation of budget to actual expenses with monthly totals and
cash balances for the period ending January 31, 2024; and, (ii) a
projection for further use of cash collateral through May 31,
2024.
A further hearing on the matter is set for February 13 at 10 a.m.
A copy of the order is available at https://urlcurt.com/u?l=Aumyyv
from PacerMonitor.com.
About Scharn Industries
Scharn Industries, LLC sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Mass. Case No. 23-10298) on Feb.
28, 2023. In the petition signed by Scott Scharn, manager, the
Debtor disclosed up to $100,000 in assets and up to $1 million in
liabilities.
Judge Janet E. Bostwick oversees the case.
The Debtor tapped Gary W. Cruickshank, Esq., at Cruickshank Law as
legal counsel and Robert S. Widell as accountant.
SELECTIS HEALTH: Incurs $2.3 Million Net Loss in Third Quarter
--------------------------------------------------------------
Selectis Health, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $2.26 million on $9.05 million of total revenue for the three
months ended Sept. 30, 2023, compared to a net loss of $990,925 on
$9.58 million of total revenue for the same period during the prior
year.
For the nine months ended Sept. 30, 2023, the Company reported a
net loss of $337,924 on $27.58 million of total revenue, compared
to a net loss of $203,623 on $29.80 million of total revenue for
the same period a year ago.
As of Sept. 30, 2023, the Company had $42.34 million in total
assets, $41.66 million in total liabilities, and $676,763 in total
equity.
Selectis stated, "For the nine months ended September 30, 2023, the
Company had operating cash flows of $2,390,891 and negative net
working capital of $8.8 million. As a result of our losses and our
projected cash needs, substantial doubt exists about the Company's
ability to continue as a going concern. The Company's ability to
continue as a going concern is contingent upon successful execution
of management's plan over the next twelve months to improve the
Company's liquidity and profitability, which includes, without
limitation:
* Increasing revenue by increasing occupancy in the facilities
and increasing Medicaid reimbursement rates;
* Controlling operating expenses; and
* Seeking additional capital through the issuance of debt or
equity securities, or the sale of assets.
"The focus on opportunities within our current portfolio and future
properties to acquire and operate, the settlement, refinance, and
continued service of debt obligations, the potential funds
generated from stock sales and other initiatives contributing to
additional working capital should alleviate any substantial doubt
about the Company's ability to continue as a going concern as
defined by ASU 2014-05. However, we cannot predict, with
certainty, the outcome of our actions to generate liquidity and the
failure to do so could negatively impact our future operations."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/727346/000149315223040535/form10-q.htm
About Selectis Health
Headquartered in Greenwood Village, Colo., Selectis Health, Inc.
owns and operates, through wholly-owned subsidiaries Assisted
Living Facilities, Independent Living Facilities, and Skilled
Nursing Facilities across the South and Southeastern portions of
the US. In 2019, the Company shifted from leasing long-term care
facilities to third-party, independent operators towards an owner
operator model.
Selectis Health reported a net loss of $2.39 million in 2022
following a net loss of $2.24 million in 2021.
SELECTIS HEALTH: Raises Going Concern Doubt
-------------------------------------------
Selectis Health, Inc. disclosed in a Form 10-Q Report filed with
the U.S. Securities and Exchange Commission for the quarterly
period ended September 30, 2023, that substantial doubt exists
about the Company's ability to continue as a going concern.
The Company explained that throughout its history, it has
experienced shortages in working capital and has relied, from time
to time, upon sales of debt and equity securities to meet cash
demands.
As of September 30, 2023, the Company had cash of $1,971,732 and
restricted cash of $1,099,647. The Company's restricted cash is to
be spent on insurance, taxes, repairs, and capital expenditures
associated with Providence of Sparta Nursing Home, Warrenton Health
and Rehab, or Southern Hills Rehab. Its continuing short-term
liquidity requirements consisting primarily of operating expenses
and debt service requirements, excluding balloon payments at
maturity, are expected to be achieved from healthcare operations,
rental revenues received, Employee Retention Credits received, and
existing cash on hand.
Cash provided by operating activities was $2,390,891 for the nine
months ended September 30, 2023, compared to cash used in operating
activities of $650,648 for the nine months ended September 30,
2022.
Cash used in investing activities was $27,891 for the nine months
ended September 30, 2023, compared to $330,769 for the nine months
ended September 30, 2022.
Cash used in financing activities was $1,708,222, for the nine
months ended September 30, 2023, compared to $1,051,525 for the
nine months ended September 30, 2022.
For the nine months ended September 30, 2023, the Company had
operating cash flows of $2,390,891 and negative net working capital
of $8.8 million.
"As a result of our losses and our projected cash needs,
substantial doubt exists about the Company's ability to continue as
a going concern. The Company's ability to continue as a going
concern is contingent upon successful execution of management's
plan over the next twelve months to improve the Company's liquidity
and profitability, which includes, without limitation: increasing
revenue by increasing occupancy in the facilities and increasing
Medicaid reimbursement rates, controlling operating expenses, and
seeking additional capital through the issuance of debt or equity
securities, or the sale of assets.
"The focus on opportunities within our current portfolio and future
properties to acquire and operate, the settlement, refinance, and
continued service of debt obligations, the potential funds
generated from stock sales and other initiatives contributing to
additional working capital should alleviate any substantial doubt
about the Company's ability to continue as a going concern as
defined by ASU 2014-05. However, we cannot predict, with certainty,
the outcome of our actions to generate liquidity, and the failure
to do so could negatively impact our future operations."
For the nine months ended Sept. 30, 2023, the Company reported a
net loss of $337,924, compared to a net loss of $203,623 for the
same period in 2022.
About Selectis Health
Formerly known as Global Healthcare REIT, Inc., Selectis Health,
Inc. acquires, develops, leases and manages healthcare real estate,
provide financing to healthcare providers, and provide healthcare
operations through its wholly-owned subsidiaries; Assisted Living
Facilities, Independent Living Facilities, and Skilled Nursing
Facilities across the South and Southeastern portions of the US. In
2019, the Company shifted from leasing long-term care facilities to
third-party, independent operators towards an owner operator
model.
As of Sept. 20, 2023, Selectis Health has $42,337,974 in total
assets and $41,661,211 in total liabilities.
SHEM OLAM: Seeks to Extend Plan Exclusivity to January 25, 2024
---------------------------------------------------------------
Shem Olam, LLC asked the U.S. Bankruptcy Court for the Southern
District of New York to further extend its exclusive right to
file a plan of reorganization and to solicit acceptances thereof
to January 25, 2024 and March 22, 2024, respectively.
This is the Debtor's third request for an extension of its
exclusive periods. The Court previously extended the Debtor's
exclusive right to file a plan of reorganization to September 27,
2023, and its exclusive right to solicit acceptances of the plan
to November 23, 2023.
The Debtor stated that it has, through special counsel,
previously communicated with Yeshiva Chofetz Chaim, Inc and 82
Highview in an effort to resolve their claims in the bankruptcy
case. However, a settlement has not been reached.
The Debtor explained that it should be granted an extension of
its exclusive periods so that it can continue to litigate the
adversary proceeding pending in the Court, and then prepare to
market its real property located at 82 Highview Road, Suffern,
New York and 105 Carlton Road, Suffern, New York for sale and
propose a plan upon a successful conclusion to the same.
The Debtor also asserted that the additional time is necessary
due to the ongoing litigation between the parties, which needs to
be either settled or resolved before seeking to sell its property
under a proposed plan.
Shem Olam, LLC is represented by:
Steven B. Eichel, Esq.
LEECH TISHMAN ROBINSON BROG, PLLC
875 Third Avenue, 9th Floor
New York, NY 10022
Tel: (212) 603-6300
About Shem Olam
Shem Olam, LLC, a company in Monsey, N.Y., sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y.
Case No. 22-22493) on July 27, 2022. Shem Olam owns the real
property located at 82 Highview Road, Suffern, New York and 105
Carlton Road, Suffern, New York. In the petition filed by its
manager, Rabbi Aryeh Zaks, the Debtor listed between $1 million
and $10 million in both assets and liabilities.
Judge Sean H. Lane oversees the case.
Leech Tishman Robinson Brog, PLLC is the Debtor's legal counsel.
SHORT FORK: Voluntary Chapter 11 Case Summary
---------------------------------------------
Debtor: Short Fork Development, LLC
P.O. Box 909
Hernando, MS 38632
Chapter 11 Petition Date: November 30, 2023
Court: United States Bankruptcy Court
Northern District of Mississippi
Case No.: 23-13660
Debtor's Counsel: Crig M. Geno, Esq.
LAW OFFICES OF CRAIG M. GENO, PLLC
587 Highland Colony Parkway
Ridgeland, MS 39157
Tel: 601-427-0048
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Guy Hendrix as member.
The Debtor failed to include in the petition a list of its 20
largest unsecured creditors.
A full-text copy of the petition is available for free at
PacerMonitor.com at:
https://www.pacermonitor.com/view/VRXGWQY/
Short_Fork_Development_LLC__msnbke-23-13660__0001.0.pdf?mcid=tGE4TAMA
SONOMA PHARMACEUTICALS: Incurs $1.5 Million Net Loss in 2nd Quarter
-------------------------------------------------------------------
Sonoma Pharmaceuticals, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q reporting a net loss
of $1.48 million on $2.73 million of revenues for the three months
ended Sept. 30, 2023, compared to a net loss of $1.02 million on
$3.33 million of revenues for the three months ended Sept. 30,
2022.
For the six months ended Sept. 30, 2023, the Company reported a net
loss of $2.90 million on $6.16 million of revenues, compared to a
net loss of $1.90 million on $7.31 million of revenues for the six
months ended Sept. 30, 2022.
As of Sept. 30, 2023, the Company had $13.63 million in total
assets, $7.96 million in total liabilities, and $5.67 million in
total stockholders' equity.
Sonoma said, "Management believes that the Company has access to
additional capital resources through possible public or private
equity offerings, debt financings, corporate collaborations or
other means; however, the Company cannot provide any assurance that
other new financings will be available on commercially acceptable
terms, if needed. If the economic climate in the U.S.
deteriorates, the Company's ability to raise additional capital
could be negatively impacted. If the Company is unable to secure
additional capital, it may be required to take additional measures
to reduce costs in order to conserve its cash in amounts sufficient
to sustain operations and meet its obligations. These measures
could cause significant delays in the Company's continued efforts
to commercialize its products, which is critical to the realization
of its business plan and the future operations of the Company.
These matters raise substantial doubt about the Company's ability
to continue as a going concern."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1367083/000168316823007982/sonoma_i10q-093023.htm
About Sonoma Pharmaceuticals
Sonoma Pharmaceuticals, Inc. (NASDAQ: SNOA) --
http://www.sonomapharma.com-- is a global healthcare company
developing and producing stabilized hypochlorous acid, or HOCl,
products for a wide range of applications, including wound care,
eye care, oral care, dermatological conditions, podiatry, animal
health care and non-toxic disinfectants. The Company's products
reduce infections, itch, pain, scarring, and harmful inflammatory
responses in a safe and effective manner. In-vitro and clinical
studies of HOCl show it to have impressive antipruritic,
antimicrobial, antiviral, and anti-inflammatory properties. The
Company's stabilized HOCl immediately relieves itch and pain, kills
pathogens and breaks down biofilm, does not sting or irritate the
skin, and oxygenates the cells in the area treated, assisting the
body in its natural healing process. The Company sells its products
either directly or via partners in 55 countries worldwide.
Sonoma Pharmaceuticals reported a net loss of $5.15 million for the
year ended March 31, 2023, compared to a net loss of $5.08 million
for the year ended March 31, 2022. As of March 31, 2023, the
Company had $16.23 million in total assets, $8.25 million in total
liabilities, and $7.98 million in total stockholders' equity.
Atlanta, Georgia-based Frazier & Deeter, LLC, the Company's auditor
since 2021, issued a "going concern" qualification in its report
dated June 21, 2023, citing that the Company has incurred
significant losses and negative operating cash flows and needs to
raise additional funds to meet its obligations and sustain its
operations. These conditions raise substantial doubt about its
ability to continue as a going concern.
STARR CLEANING: Court OKs Cash Collateral Access Thru Jan 2024
--------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Arizona authorized
Starr Cleaning Services, LLC to use cash collateral on an interim
basis in accordance with the budget, through January 31, 2024.
As previously reported by the Troubled Company Reporter, prior to
the Petition Date, on June 1, 2020, the Debtor executed a U.S.
Small Business Administration Note, pursuant to which the Debtor
obtained a loan in the amount of $27,000. The terms of the Note
require the Debtor to pay principal and interest payments of $132
every month beginning 12 months from the date of the Note over the
30 year term of the SBA Loan. The SBA Loan has an annual rate of
interest of 3.75% and may be prepaid at any time without notice of
penalty.
As evidenced by the Security Agreement and a validly recorded UCC-1
filing on June 10, 2020 as Filing Number 2020-003-5498-5, the SBA
Loan is secured by all tangible and intangible personal property.
The Parties agreed that any and all of the Personal Property
Collateral constitutes the cash collateral of the SBA, pursuant to
II U.S.C. Section 363(a).
The Debtor represented to the SBA that it will make no additional
or unauthorized use of the cash collateral retroactive from the
Petition Date until January 31, 2024, or the entry of an Order
Confirming the Debtor's Plan of Reorganization, whichever occurs
earlier, for ordinary and necessary expenses as set forth in the
budget, with a 10% variance.
As adequate protection, retroactive to the Petition Date, SBA will
receive a replacement lien on all post-petition revenues of the
Debtor to the same extent, priority, validity, and enforceability
that its lien attached to the cash collateral as of the Petition
Date.
A copy of the order is available at https://urlcurt.com/u?l=2RlJKB
from PacerMonitor.com.
About Starr Cleaning Services, LLC
Starr Cleaning Services, LLC sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. D. Ariz. Case No.
2:23-bk-07844-EPB) on November 1, 2023. In the petition signed by
Austin Arrow, member, the Debtor disclosed up to $500,000 in assets
and up to $1 million in liabilities.
Judge Eddward P. Ballinger Jr. oversees the case.
Allan D. NewDelman, Esq., at Allan D. Newdelman, PC, represents the
Debtor as legal counsel.
SUD'S CLUB: Unsecured Creditors to be Paid in Full over 3 Years
---------------------------------------------------------------
SUD'S Club, LLC, filed with the U.S. Bankruptcy Court for the
Middle District of Georgia a Subchapter V Plan of Reorganization
dated November 21, 2023.
The Debtor is a Georgia Limited Liability Company formed by Jacob
Fried, its president and sole shareholder. The Debtor operates a
carwash in Eatonton, Georgia.
The business started to experience financial difficulties due to a
dispute with the local water utility company and complications
cause by the rise in interest rates. Furthermore, due to the
Debtor's dispute with the water company, the Debtor's water service
was shut off for a brief period during the summer which required
the Debtor to shut down operations. To restore water service, the
Debtor was required to seek bankruptcy protection.
Upon filing this bankruptcy, Debtor has been able to restart its
regular operations and regain valuable customers lost during the
closure. The Debtor's business is starting to stabilize and enable
the company to restructure its debts and propose a plan to pay all
creditors in full.
While in bankruptcy, the Debtor has continued to operate its
business and maintain the property. The Debtor is confident that
his business will continue to grow and increase revenue.
The final Plan payment is expected to be paid within 3 years of the
date of confirmation.
This Plan is filed pursuant to Chapter 11-Subchapter V of the
Bankruptcy Code and proposes to pay creditors of the Debtor from
revenue generated through the continued operation of the Debtor's
business.
The Debtor expects that all non-priority unsecured creditors
holding allowed claims will receive payment in full through the
distribution of disposable income over the life of the Plan. The
Plan also provides for the payment of administrative and priority
claims in full.
Class 3 consists of General Unsecured Claims. General unsecured
claims shall be paid in full through the pro-rata distribution of
the Debtor's disposal income, after distribution for payment of
administrative claims, on an annual basis until paid in full.
Holders of general unsecured claims shall receive their first
annual disbursement of disposal income on or before January 31,
2025, and, on or before January 31st of each subsequent year until
paid in full. The claims of the Class 3 creditors are impaired by
the Plan.
Class 4 consists of the equity interest held by Jacob Fried. As the
sole member and equity interest holder, Jacob Fried shall retain
his 100% interest in the reorganized Debtor.
All payments shall be made from the Debtor's future earnings, the
liquidation of its assets, or from loans, contributions, or gifts
to the Debtor. The Debtor may maintain bank accounts under the
confirmed Plan in the ordinary course of business. Debtor may also
pay ordinary and necessary expenses of administration of the Plan
in due course.
A full-text copy of the Subchapter V Plan dated November 21, 2023
is available at https://urlcurt.com/u?l=BYPEEr from
PacerMonitor.com at no charge.
Counsel to Debtor:
Christopher W. Terry, Esq.
BOYER TERRY LLC
348 Cotton Avenue, Suite 200
Macon, GA 31201
Tel: (478) 742-6481
Fax: (770) 200-9230
Email: Chris@boyerterry.com
About SUD'S Club
SUD'S Club, LLC, is the owner of a commercial property located at
673 Old Phoenix Road Eatonton, Georgia valued at $2.2 million.
SUD'S Club filed its voluntary petition for relief under Chapter 11
of the Bankruptcy Code (Bankr. M.D. Ga. Case No. 23-51151) on Aug.
23, 2023, listing $3,037,441 in assets and $2,280,000 in
liabilities. The petition was signed by Jacob Fried as sole
member.
Christopher W. Terry, at BOYER TERRY LLC, is the Debtor's counsel.
SUPOR PROPERTIES: Trustee Taps McManimon Scotland as Attorney
-------------------------------------------------------------
Andrea Dobin, Chapter 11 Trustee of Supor Properties Bergen Avenue,
LLC, seeks approval from the U.S. Bankruptcy Court for the District
of New Jersey to hire McManimon, Scotland & Baumann, LLC as her
attorney.
The Trustee requires legal counsel to perform services during the
pendency of the case.
McManimon Scotland will be paid at these hourly rates:
Partners $325 to $625
Associates $220 to $375
Law Clerks $145 to $175
Paralegals/Support Staffs $145 to $175
McManimon Scotland will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Andrea Dobin, a member at McManimon Scotland, assured the Court
that the firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code and does not represent any
interest adverse to the Debtor and its estates.
McManimon Scotland can be reached at:
Andrea Dobin, Esq.
McManimon, Scotland & Baumann, LLC
427 Riverview Plaza
Trenton, NJ 08611
Telephone: (609) 695-6070
About Supor Properties
Supor Properties Bergen Avenue LLC is in the business of a
multifaceted, unique technical industrial support facility provider
in addition to its real estate, landlord business.
The Debtor filed Chapter 11 Petition (Bankr. D.N.J. Case No.
23-15758) on July 5, 2023, with $0 to $50,000 in assets and $10
million to $50 million in liabilities. Joseph Supor III, authorized
member, co-trustee of Marital Trust, signed the petition.
Jay Meyers, Esq. of J. MEYERS PLLC represents the Debtor as legal
counsel.
SWEETWATER GOLF: Seeks to Hire Shuker & Dorris as Legal Counsel
---------------------------------------------------------------
Sweetwater Golf and Country Club, Inc. seeks approval from the U.S.
Bankruptcy Court for the Middle District of Florida to employ the
Law Firm of Shuker & Dorris, P.A. as its counsel.
The firm's services include:
a. advising as to the Debtor's rights and duties in the
bankruptcy case;
b. preparing pleadings related to this case, including a
disclosure statement and a plan of reorganization; and
c. taking any and all other necessary action incident to the
proper preservation and administration of this estate.
The firm will be paid at these rates:
Partners $650 per hour
Associates $425 per hour
Paraprofessionals $125 to $175 per hour
The firm received a retainer in the amount of $16,582.50.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
R. Scott Shuker, Esq., a partner at Law Firm of Shuker & Dorris,
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:
R. Scott Shuker, Esq.
Shuker & Dorris, P.A.
121 S. Orange Avenue, Suite 1120
Tel: (407) 337-2060
Fax: (407) 337-2050
Email: rshuker@shukerdorris.com
About Sweetwater Country Club
Sweetwater Country Club in Sweetwater, TX, offers championship golf
on an 18-hole, semi-private golf course, an array of facilities and
so much more.
Ubuildit - Central Florida LLC filed an involuntary Chapter 11 case
against the Debtor (Bankr. M.D. Fla. Case No. 23-04594) on October
31, 2023.
Kenneth D. Herron, Jr., Esq. at HERRON HILL LAW GROUP, PLLC
represents the Debtor as counsel.
TERRESTRIAL BREWING: Case Summary & 16 Unsecured Creditors
----------------------------------------------------------
Debtor: Terrestrial Brewing Company, LLC
7524 Father Fascati Dr.
Cleveland, OH 44102
Business Description: The Debtor owns and operates a brewery
located in the Battery Park neighborhood of
Cleveland, Ohio. The Taproom houses an
American-made, five barrel brewhouse from
Portland Kettle Works.
Chapter 11 Petition Date: December 1, 2023
Court: United States Bankruptcy Court
Northern District of Ohio
Case No.: 23-14226
Judge: Hon. Suzana Krstevski Koch
Debtor's Counsel: Jonathan P. Blakely, Esq.
JONATHAN P. BLAKELY, ESQ.
P.O. Box 217
Middlefield, OH 44062
Tel: (440) 339-1201
Fax: (440) 632-9091
Email: jblakelylaw@windstream.net
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Ryan G. Bennett as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 16 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/5O66OBI/Terrestrial_Brewing_Company_LLC__ohnbke-23-14226__0001.0.pdf?mcid=tGE4TAMA
TKC HOLDINGS: Moody's Alters Outlook on 'Caa1' CFR to Stable
------------------------------------------------------------
Moody's Investors Service affirmed TKC Holdings, Inc.'s ("TKC")
Caa1 corporate family rating, Caa1-PD probability of default
rating, B2 senior secured 1st lien notes, B2 senior secured 1st
lien bank credit facility ratings and Caa2 senior unsecured notes
rating. Moody's also changed the outlook to stable from negative.
At the same time, Moody's assigned a Caa1 corporate family rating,
Caa1-PD probability of default rating and a stable outlook to TKC
Intermediate Holdings, Inc., the parent entity of TKC Holdings,
Inc. Subsequent to this action, Moody's will withdraw the CFR and
PDR at TKC Holdings, Inc, since it doesn't provide its own
financial statements and Moody's analyzes the company using TKC
Intermediate Holdings, Inc.' financial statements. The instrument
ratings will continue to remain at TKC Holdings, Inc. because it is
the borrower.
"The outlook change reflects Moody's expectation of continued
sequential improvement in TKC's operating performance as a result
of reduced cost inflation, improved inmate spending and cost
reduction efforts", said Mikhil Mahore, a Moody's analyst. "The
affirmation of the CFR reflects the company's high financial
leverage, and without significant improvements in EBITDA, the
capital structure could remain untenable", Mahore added.
RATINGS RATIONALE
TKC's CFR is constrained by: (1) Moody's expectation of very high
financial leverage (including holdco PIK toggle notes) at about 10x
in 2024; (2) adequate liquidity; (3) aggressive financial policies
under private ownership by H.I.G. Capital, including debt-funded
distributions; and (4) a volume-based business exposed to social
risks linked to prison policy reform and a long term decline in the
US incarcerated population.
The rating benefits from: (1) Moody's expectation of improving
operating performance in 2024 as a result of improving inmate
spending and reducing cost inflation; (2) good revenue visibility
supported by multiyear contracts; (3) a strong market position in
its commissary and food service businesses, providing competitive
advantages in pricing and bidding processes; and (4) ongoing
outsourcing trend as local and state governments seek operational
efficiencies.
TKC has adequate liquidity, with sources of around $100 million,
compared to about $11 million of uses until the end of 2024.
Sources consist of about $44 million in cash on hand at September
2023, almost full availability under the $50 million revolving
credit facility (less letters of credit) expiring 2026 and Moody's
expectation of free cash flow generation of about $5 million for
the four quarters ending 2024. Uses of liquidity include $11
million of mandatory term loan amortization. Moody's expects the
company to PIK the interest on its $320 million Holdco PIK toggle
notes in 2024 to conserve liquidity. Moody's expects the company to
use their revolving credit facility during the year to cover
working capital needs. The revolving credit facility has a
springing covenant based on a maximum net leverage ratio of 5.15x
when drawings exceed 35% of total borrowing capacity. Moody's
expects at least 15% covenant cushion in the next four quarters.
The company has limited ability to generate alternate liquidity
from asset sales.
The B2 rating on TKC's senior secured credit facilities ($525
million first lien term loan and $425 million first lien notes,
both due May 2028, and $50 million revolver due May 2026) reflects
their priority ranking in the capital structure and benefit from
loss absorption cushion provided by the company's senior unsecured
notes but Moody's views that the PIK toggle Holdco notes due 2027
would not provide meaningful loss absorption in the event of a
default. The Caa2 rating on the $675 million senior unsecured notes
due 2029 reflects contractual subordination to the first lien
facilities.
The stable outlook reflects Moody's view that TKC's operating
performance will improve slightly in the next 12-18 months, but
leverage will remain very high as the outstanding amount of the
Holdco PIK toggle notes continue to grow.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
TKC's ratings could be upgraded if debt/EBITDA sustains below 7.5x
and liquidity, free cash flow and operating performance improve.
The ratings could be downgraded if liquidity erodes through greater
than expected cash flow burn, operating performance deteriorates,
market position weakens or if the likelihood of a distressed
exchange transaction increases.
TKC is a leading provider of commissary, food service, and related
products to the corrections industry across the United States. The
company is headquartered in St. Louis, Missouri and is owned by
funds affiliated with H.I.G. Capital.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
TRINITY REGIONAL HOSPITAL: Hospital Purchased by HCA Healthcare
---------------------------------------------------------------
Lauren Coleman-Lochner and Amelia Pollard of Bloomberg News report
that the sale of the beleaguered Trinity Regional Hospital Sasche
to HCA Healthcare Inc., the largest US hospital chain, was approved
by the US Bankruptcy Court for the Northern District of Texas
Wednesday, November 29, 2023.
The Dallas-area hospital will be bought for $41 million in cash and
the deal is expected to close by the end of January, Marcus Helt,
an attorney at McDermott Will & Emery LLP who represents Trinity
Regional, said during a bankruptcy hearing. The auction for the
hospital was held earlier this month and involved multiple rounds
over the course of several hours, he added.
About Trinity Regional Hospital Sachse
Trinity Regional Hospital Sachse is a full-service hospital and
emergency room near Dallas, Texas. Trinity Regional Hospital
Sachse is a not-for-profit, 32 bed, community-focused acute care
hospital providing care to the residents of Sachse, Murphy, Wylie,
Rowlett, Garland, Plano, Richardson, and surrounding communities.
Owners of the hospital, Sunland Medical Foundation and 4750 GHW
Bush Land Holdings LLC sought Chapter 11 protection (Bankr. N.D.
Tex. Lead Case No. 23-80000) on Aug. 29, 2023.
The Debtors estimated $50 million to $100 million in assets and
$100 million to $500 million in liabilities as of the bankruptcy
filing.
The Hon. Michelle V. Larson is the case judge.
The Debtors tapped McDERMOTT WILL & EMERY LLP as counsel; and
MEADOWLARK ADVISORS, LLC, as financial advisor. STRETTO INC. is
the claims agent.
UP RIGHT: Unsecureds Will Get 4% of Claims over 36 Months
---------------------------------------------------------
Up Right Transportation LLC filed with the U.S. Bankruptcy Court
for the Eastern District of Louisiana a First Plan of
Reorganization under Subchapter V dated November 21, 2023.
Up Right was originally formed by Mr. Keith Cooper in 2010. The
Debtor is a transportation company that hauls commercial equipment
for short and regional jobs.
The commercial trucking industry drastically slowed in the
Southeast Gulf Coast Region in 2021, which was the beginning of the
Debtor's financial issues. The Debtor originally maintained a
business office on the west bank of New Orleans to handle and
process shipments and jobs, coordinate drivers, etc. The Debtor
also rents a storage yard in Harvey on Peters Road where the Debtor
stores all of its big rigs and trailers when not operating.
The Liquidation Analysis reveals that in a hypothetical Chapter 7,
unsecured creditors would not receive a distribution. This Plan
proposes to pay unsecured creditors $16,200.00 (4.0% of claims) so
that the Plan pays more than creditors would receive in a
hypothetical Chapter 7.
Under this Plan, the Debtor intends to distribute cash generated
from its operations to holders of Allowed Claims. In addition to
Administrative Claims and Priority Tax Claims, this Plan provides
for the treatment of Claims and Interests as follows:
* Seven Classes of Secured Claims which will be paid the
secured value of such creditors' collateral, plus interest, over 60
months;
* One Class of Unsecured Claims which will be paid in
quarterly payments over 36 months. These payments will be made by
Mr. Ryan Richmond, the Debtor's Subchapter V Trustee, who shall act
as Disbursement Agent herein; and
* Keith Cooper, the Debtor's equity interest holder, who will
retain his ownership interest in the Debtor.
Class 8 consists of the General Unsecured Creditors. There are a
total of three unsecured claims filed in this case, which when
combined with the Debtor's scheduled non-disputed claims, and
secured creditors' deficiency claims, creates a total General
Unsecured Creditor class of $419,643.00. The Debtor shall make
monthly payments to the Disbursement Agent of $450.00, which the
Disbursement Agent shall distribute pro rata to the unsecured
creditors on a quarterly basis for 12 quarters (36 months). This is
approximately a 4% payout on unsecured claims.
Keith Cooper shall retain his equity interest in the Debtor.
The Debtor will fund its future plan payments from its disposable
income earned from the Debtor's operations. Based upon its annual
operations, the Debtor estimates that its monthly disposable net
income to be contributed to the Class 8 General Unsecured Creditors
will be $450.00 per month.
A full-text copy of the First Plan of Reorganization dated November
21, 2023 is available at https://urlcurt.com/u?l=72VfN4 from
PacerMonitor.com at no charge.
Counsel for the Debtor:
Robin R. De Leo, Esq.
THE DE LEO LAW FIRM, LLC
800 Ramon St.
Mandeville, LA 70448
Tel: (985) 727-1664
Fax: (985) 727-4388
Email: lisa@northshoreattorney.com
About UP Right Transportation
Up Right Transportation LLC is a transportation company that hauls
commercial equipment for short and regional jobs.
Up Right Transportation sought protection for relief under Chapter
11 of the Bankruptcy Code (Bankr. E.D. La. Case No. 23-11429) on
Aug. 24, 2023, listing $100,001 to $500,000 in assets and $500,001
to $1 million in liabilities.
Robin R. De Leo, Esq., at The De Leo Law Firm LLC, is the Debtor's
counsel.
VERITAS HOLDINGS: S&P Downgrades ICR to 'CCC+', Outlook Negative
----------------------------------------------------------------
S&P Global Ratings lowered all its ratings including its issuer
credit rating on Veritas Holdings Ltd. (and debt issuer subsidiary
Veritas NL Intermediate Holdings B.V.) to 'CCC+.'
The negative outlook reflects S&P's expectation for increased
business execution risk and cash flow deficits over the next 12-18
months as it navigates a multiyear subscription revenue transition
and a softer enterprise information technology (IT) business
environment.
The company faces challenging business environment and execution
risk as management pivots attention to cost restructuring while
navigating a complex revenue model transition and newer cloud
strategy. S&P said, "We acknowledge Veritas has made progress in
expanding its subscription annual recurring revenue (ARR) base;
however, the company's significant financial guidance revision and
planned restructuring in fiscal 2025, including a
worse-than-expected cash flow burn of $230 million in fiscal 2024,
are setbacks signaling revenue headwinds that are likely to
persist. We expect the business challenges will weigh on growth
over the next year and believe this reduces the company's cushion
to manage a complex subscription revenue transition and withstand
unexpected business underperformance given a more difficult
operating environment. We view the transition as complex given
Veritas serves large enterprise customers that enter larger
longer-term contracts. As a result, we expect greater variability
in the company's transition performance that is difficult to
predict."
ARR increased about 6% in the most recent quarter ended Sept. 30,
but management expects its growth will decelerate to the low-to-mid
single digits percents for the fourth fiscal 2024 quarter. While
the data back-up and protection market will likely benefit from
increasing cybersecurity investments, Veritas's software defined
storage and compliance offerings (about 28% of ARR) have
experienced persistent growth challenges. These areas also tend to
have below corporate average retention rates historically. The
company's overall ARR net retention rate was about 104% (as of
Sept. 30, 2023) but it is highly dependent on growing spend and
capacity expansion to offset churn and price pressures that have
risen as enterprises increasingly scrutinize their IT budgets.
The negative outlook reflects S&P's expectation for ongoing
business pressures stemming from more difficult operating and
competitive cloud market environment will lead to revenue bookings
and cash flow weakness. While the company will likely maintain
sufficient liquidity in fiscal 2024, our forecast for a higher
annual FOCF deficit of $217 million, and uncertain prospects for
significant improvements coincide with the company's debt
maturities that become current in September 2024.
S&P could lower the rating if:
-- The company experiences additional business challenges such
that it sustains revenue bookings declines or incurs significant
cost restructuring leading to higher-than-expected cash flow
deficits and weaker liquidity; or
-- Its operating performance is weaker than expected such that S&P
believes debt restructuring risk has increased.
S&P could consider a positive rating action if:
-- The company's FOCF deficit improves, and S&P believes it will
be on the path to achieving at least 3% FOCF to debt on a sustained
basis and adjusted debt to EBITDA below 8x; or
-- S&P believes improved business and market conditions would
facilitate a debt refinancing at reasonable market terms.
VESTTOO LTD: Seeks to Hire Ballard Spahr as Conflicts Counsel
-------------------------------------------------------------
Vesttoo Ltd. and affiliates seek approval from the U.S. Bankruptcy
Court for the District of Delaware to employ Ballard Spahr LLP as
their conflicts counsel.
Ballard Spahr will act as conflicts counsel, and will assist DLA
Piper with matters or issues related to or involving White Rock,
AON, or any other party with which DLA Piper has a conflict and
Ballard Spahr does not.
The firm received a retainer payment in the amount of $150,000.
As disclosed in court filings, Ballard Spahr is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Matthew G. Summers, Esq.
Ballard Spahr LLP
919 North Market Street, 11th Floor
Wilmington , DE 19801-3034
Tel: (302) 252-4465
Fax: (302) 252-4466
Email: summersm@ballardspahr.com
About Vesttoo Ltd.
Vesttoo Ltd. is a technology-driven collateralized reinsurance
provider in Tel Aviv, Israel. It connects the insurance industry
with the capital markets by combining AI-powered technology with
expertise in data science, insurance and finance.
Vesttoo and its affiliates sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Del. (Lead Case No. 23-11160) on
August 14 and 15, 2023.
The Honorable Bankruptcy Judge Mary F. Walrath oversees the case.
The Debtors tapped DLA Piper, LLP (US) as legal counsel and Kroll,
LLC as financial advisor. Epiq Corporate Restructuring, LLC is the
claims and administrative agent.
The U.S. Trustee for Region 3 appointed an official committee to
represent unsecured creditors in the Debtor's Chapter 11 case. The
committee tapped Greenberg Traurig, LLP as legal counsel and
Alvarez & Marsal North America, LLC as financial advisor.
VIDEO RIVER: Has Going Concern Doubt, Cites $15.7MM Deficit
-----------------------------------------------------------
Video River Networks, Inc. disclosed in a Form 10-Q Report filed
with the U.S. Securities and Exchange Commission for the quarterly
period ended September 30, 2023 that substantial doubt exists about
the Company's ability to continue as a going concern.
For the current quarter and nine months ended September 30, 2023,
the Company reported revenue of $(18,791) and $1,135,578
respectively. The Company has an accumulated deficit of $15,736,263
as of September 30, 2023. "These conditions raise substantial doubt
about our ability to continue as a going concern," the Company
said.
Video River Networks, Inc., as of September 30, 2023, had a working
capital of $19,938, consisting of $19,456 in cash, $2,882 in
Trading Securities, and $2,400 in short-term liabilities. For the
nine months period ended September 30, 2023, the Company generated
$817,900 from operating activities, generated cash of $496,328 from
investing activities, and used cash of $1,359,351 on financing
activities, resulting in a decrease in total cash of $45,123 and a
cash balance of $19,456 for the period. Compared to the nine months
period ended September 30, 2022, the Company generated $2,295,862
from operating activities, used cash of $3,992,846 on investing
activities, and generated cash of $1,188,119 on financing
activities, resulting in an decrease in total cash of $508,865 and
a cash balance of $90,525 for the period.
As of September 30, 2023, total stockholders' equity increased to
$3,652,734 from $2,994,588 as of December 31, 2022, accounting for
the $658,146 net income for the period ended September 30, 2023.
As of September 30, 2023, the Company had a cash balance of $19,456
(i.e. cash is used to fund operations).
The Company believes its current cash balances will be sufficient
to fund its operating plan for the next 12 months. "However, our
ability to continue as a going concern is still dependent on us
obtaining adequate capital to fund operation or maintaining
consecutive quarterly profitability. If we are unable to obtain
adequate capital, or maintaining consecutive quarterly
profitability, we could be forced to cease operations or
substantially curtail its drug development activities. These
conditions could raise substantial doubt as to our ability to
continue as a going concern."
"Our principal sources of liquidity are: (1) Crypto Currency
Mining, (2) Real Estate Sales, (3) Trading Securities, and (4)
Entrepreneurship Development Initiative. In the past, we have been
generating cash from loans to us by our major shareholder. In order
to be able to achieve our strategic goals, we need to further
expand our business and implement our business plan. To continue to
develop our business plan and generate sales, significant capital
has been and will continue to be required. Management intends to
fund future operations through private or public equity and/or debt
offerings. We continue to engage in preliminary discussions with
potential investors and broker-dealers, but no terms have been
agreed upon. There can be no assurances, however, that additional
funding will be available on terms acceptable to us, or at all. Any
equity financing may be dilutive to existing shareholders. We do
not currently have any contractual restrictions on our ability to
incur debt and, accordingly, we could incur significant amounts of
indebtedness to finance operations. Any such indebtedness could
contain covenants which would restrict our operations," the Company
stated.
Video River reported a net loss of $77,188 for three months ended
September 30, 2023, as compared to net income of $493,596 for the
three months ended September 30, 2022.
About Video River
Headquartered in Torrance, California, Video River Networks, Inc.
is a technology holding firm that operates and manages a portfolio
of Electric Vehicles, Artificial Intelligence, Machine Learning and
Robotics ("EV-AI-ML-R") assets, businesses and operations in North
America. The Company's current and target portfolio businesses and
assets include operations that design, develop, manufacture and
sell high-performance fully electric vehicles and design,
manufacture, install and sell Power Controls, Battery Technology,
Wireless Technology, and Residential utility meters and remote,
mission-critical devices mostly engineered through Artificial
Intelligence, Machine Learning and Robotic technologies NIHK's
current technology-focused business model is a result of its board
resolution on Sept. 15, 2020 to spin-in/off its specialty real
estate holding business to an operating subsidiary and then pivot
back to being a technology company.
As of September 30, 2023, The Company has $4,328,890 in total
assets and $676,156 in total liabilities.
Newhall, California-based DylanFloyd Accounting & Consulting, the
Company's auditor since 2019, issued a "going concern"
qualification in its report dated April 15, 2023, citing that the
Company has an accumulated deficit of $16,394,409 for the year
ended Dec. 31, 2022. These factors raise substantial doubt about
the Company's ability to continue as a going concern.
VPR BRANDS: Posts $2.95 Million Net Income in Third Quarter
-----------------------------------------------------------
VPR Brands, LP filed with the Securities and Exchange Commission
its Quarterly Report on Form 10-Q reporting net income of $2.95
million on $3.54 million of total revenues for the three months
ended Sept. 30, 2023, compared to a net loss of $54,521 on $1.23
million of total revenues for the three months ended Sept. 30,
2022.
For the nine months ended Sept. 30, 2023, the Company reported net
income of $3.90 million on $8.53 million of total revenues,
compared to a net loss of $128,029 on $3.21 million of total
revenues for the nine months ended Sept. 30, 2022.
As of Sept. 30, 2023, the Company had $3.44 million in total
assets, $1.86 million in total liabilities, and $1.58 million in
total partners' capital.
The Company has an accumulated deficit of $6,513,844 and working
capital of $1,961,188 at Sept. 30, 2023.
"The Company is in default on certain of its debt obligations. The
continuation of the Company as a going concern is dependent upon,
among other things, the continued financial support from its common
unit holders, the ability of the Company to obtain necessary equity
or debt financing, and the attainment of profitable operations.
These factors, among others, raise substantial doubt regarding the
Company's ability to continue as a going concern. There is no
assurance that the Company will be able to generate sufficient
revenues in the future," VPR said.
"The Company plans to pursue equity funding to expand its brand.
Through equity funding and the current operations, the Company
expects to meet its current capital needs. There can be no
assurance that the Company will be able to raise sufficient working
capital. If the Company is unable to raise the necessary working
capital through equity funding, it will be forced to continue
relying on cash from operations in order to satisfy its current
working capital needs," VPR said.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1376231/000121390023086997/f10q0923_vprbrands.htm
About VPR Brands
Headquartered in Ft. Lauderdale, FL, VPR Brands, LP --
http://www.VPRBrands.com-- is company engaged in the electronic
cigarette and personal vaporizer business.
Los Angeles, California-based Kreit & Chiu CPA's LLP, the Company's
auditor since 2022, issued a "going concern" qualification in its
report dated April 13, 2023, citing that the Company has an
accumulated deficit of $10,418,696 and a working capital deficit of
$1,938,476 at Dec. 31, 2022. These factors, among others, raise
substantial doubt regarding the Company's ability to continue as a
going concern.
VYCOR MEDICAL: Raises Going Concern Doubt, Sees Cash Crunch
-----------------------------------------------------------
Vycor Medical, Inc. disclosed in a Form 10-Q Report filed with the
U.S. Securities and Exchange Commission for the fiscal quarter
ended September 30, 2023, that substantial doubt exists about the
Company's ability to continue as a going concern.
The Company believes it may not have sufficient cash to meet its
various cash needs through November 30, 2024 unless the Company is
able to obtain additional cash from the issuance of debt or equity
securities.
According to Vycor Medical, the Company has incurred losses since
its inception, including a net loss available to common
stockholders of $301,006 for the nine months ended September 30,
2023 and since inception has not generated sufficient positive cash
flows from operations, although it did generate positive cash flows
from operations for the nine months ended September 30. As of
September 30, the Company had a working capital deficiency of
$458,274, excluding related party liabilities of $2,947,050. These
conditions, among others, raise substantial doubt regarding the
Company's ability to continue as a going concern.
The Company is executing a plan to achieve a reduction in cash
operating losses. Included within the working capital deficiency is
a term note for $300,000 to EuroAmerican Investment Corp., together
with accrued interest of $460,798 which has a maturity date of
December 31, 2023, having been extended on a number of occasions
from its initial due date of June 11, 2011. At this time, it is not
known whether any further extension of the note beyond December 31,
2023 will be available.
Fountainhead Capital Management Limited, the Company's largest
shareholder, has provided working capital funding to the Company on
an as-needed basis, although there is no guarantee that this will
continue to be the case. The Company may consider seeking
additional equity or debt funding, although there is no assurance
that this would be available on acceptable terms or at all. If
adequate funds are not available, the Company may have to delay or
curtail development or commercialization of products, or cease some
of its operations.
For the three months ended September 30, 2023, the Company reported
a net loss of $51,904 compared to a net loss of $114,807 for the
same period in 2022.
A full-text copy of the Form 10-Q is available at
https://tinyurl.com/264rcce8
About Vycor Medical
Vycor Medical, Inc. (OTCQB: VYCO) -- http://www.vycormedical.com--
provides the medical community with innovative and superior
surgical and therapeutic solutions and operates two distinct
business units within the medical device industry. Vycor Medical
designs, develops and markets medical devices for use in
neurosurgery.
Vycor Medical reported a net loss of $404,917 for the year ended
Dec. 31, 2022, compared to a net loss of $435,662 for the year
ended Dec. 31, 2021.
As of September 30, 2023, Vycor Medical has $1,054,469 in total
assets and $4,286,890 in total liabilities.
Hackensack, New Jersey-based Prager Metis CPAs, LLC, the Company's
auditor since 2018, issued a "going concern" qualification in its
report dated April 14, 2023, citing that the Company has incurred
net losses since inception, including a net loss of $404,917 and
$435,662 for the years ended December 31, 2022 and 2021
respectively, and has not generated sufficient cash flows from its
operations. As of December 31, 2022, the Company had working
capital deficiency of $551,433, excluding related party liabilities
of $2,585,600. These factors, among others, raise substantial doubt
regarding the Company's ability to continue as a going concern.
WEWORK INC: SEC Sues ArciTerra, CEO for Fraud
---------------------------------------------
The Securities and Exchange Commission on Nov. 29, 2023, announced
fraud charges against Phoenix-based real estate investment company
ArciTerra Companies LLC and its CEO, Jonathan M. Larmore, for
engaging in a multi-year scheme to misappropriate millions of
dollars of investor funds from investment vehicles that ArciTerra
managed. The SEC also charged several entities controlled by
Larmore for their roles in the scheme.
The SEC's complaint, filed on Nov. 28, 2023, alleges that, since at
least January 2017, Larmore and the charged entities
misappropriated more than $35 million from private real estate
funds and other investment vehicles that ArciTerra managed.
Larmore allegedly used a substantial portion of the misappropriated
funds to pay for his family members' personal expenses and to fund
a lavish lifestyle of private jets, yachts, and expensive
residences.
The SEC's complaint also alleges that Larmore and Cole Capital
Funds LLC, an entity Larmore formed and controlled, issued a press
release in November 2023 falsely stating that Cole Capital intended
to purchase 51 percent of all minority ownership shares in WeWork,
Inc., an unrelated public company, at $9 a share, more than nine
times WeWork's then-current trading price. According to the SEC's
complaint, WeWork's stock rose close to 150 percent in after-hours
trading shortly after the press release was issued. The complaint
alleges that Larmore purchased more than 72,000 call options in
WeWork at a price far below the stock price in the days before the
press release was published, hoping to execute the trades at profit
after manipulating the stock price. However, due to a delay in the
issuance of the press release, most of the options expired before
Larmore could exercise them.
"As the complaint alleges, instead of protecting client assets,
Larmore and his related entities took advantage of investor trust
for his and his family's personal gain," said Andrew Dean, Co-Chief
of the Asset Management Unit. "Protecting investors from fraud by
their financial advisers is a priority for the SEC, as is
protecting the market from false press releases aimed at
manipulating the stock of a publicly traded company for personal
gain and leaving unknowing investors to lose out."
The SEC's complaint, filed in U.S. District Court for District of
Arizona, charged Larmore, ArciTerra, and several related entities
controlled by Larmore with violating the antifraud provisions of
the federal securities laws. The complaint seeks permanent
injunctive relief, the appointment of a receiver, disgorgement and
prejudgment interest, and a civil penalty, and other relief.
The SEC's ongoing investigation is being conducted by Heather
Marlow and Amanda Straub and supervised by Jeremy Pendrey, Mr.
Dean, and Corey Schuster, all of the Asset Management Unit, with
the assistance of Michael Foley of the San Francisco Regional
Office. The litigation will be led by John Han, Ms. Marlow, and
Ms. Straub. The investigative team appreciates the assistance of
David Snyder and Assunta Vivolo of the Philadelphia Regional
Office's Crypto Assets and Cyber Unit and Neal Jacobson and
Alistaire Bambach of the New York Regional Office.
About WeWork Inc.
New York, NY-based WeWork Inc. is a global flexible workspace
provider, serving a membership base of businesses large and small
through its network of 779 Systemwide Locations, including 622
Consolidated Locations as of December 2022.
WeWork Inc. and its affiliates sought relief under Chapter 11 of
the Bankruptcy Code (Bankr. D.N.J. Case No. 23-19865) on Nov. 6,
2023. In its petition, WeWork Inc. reported $19 billion of
liabilities and $15 billion of assets.
The Debtors are represented by Kirkland & Ellis LLP (Edward
Sassower, Joshua Sussberg, Steven Serrejeddini, Ciara Foster,
Oliver Pare, Josh Greenblatt, Jimmy Ryan, Connor Casas, William
Arnault) and Cole Schotz PC (Michael Sirota, Warren Usatine, Felice
Yudkin, Ryan Jareck) as legal counsel, Alvarez & Marsal North
America LLC (Justin Schmaltz) as financial advisor, and PJT
Partners LP (Paul Sheaffer) as investment banker. Softbank is
represented by Weil Gotshal & Manges LLP (Gary Holtzer, Gabriel
Morgan, Kevin Bostel, Eric Einhorn) and Wollmuth Maher & Deutsch
LLP (Paul DeFilippo, James Lawlor, Steven Fitzgerald, Joseph
Pacelli) as legal counsel and Houlihan Lokey Capital as financial
advisor.
The Ad Hoc Group of First Lien and Second Lien Lenders is
represented by Davis Polk & Wardwell LLP (Eli Vonnegut, Elliot
Moskowitz, Natasha Tsiouris, Jonah Peppiatt) and Greenberg Traurig
LLP (Alan Brody) as legal counsel and Ducera Partners LLC as
financial advisor.
WHITETAIL DEVELOPMENT: Taps Demarco Mitchell as Bankruptcy Counsel
------------------------------------------------------------------
Whitetail Development Group, LLC seeks approval from the U.S.
Bankruptcy Court for the Western District of Texas to employ
Demarco Mitchell, PLLC, as counsel.
The firm will provide these services:
a. take all necessary action to protect and preserve the
Estate, including the prosecution of actions on its behalf, the
defense of any actions commenced against it, negotiations
concerning all litigation in which it is involved, and objecting to
claims;
b. prepare on behalf of the Debtor all necessary motions,
applications, answers, orders, reports, and papers in connection
with the administration of the estate;
c. formulate, negotiate, and propose a plan of reorganization;
and
d. perform all other necessary legal services in connection
with these proceedings.
The firm will be paid at these rates:
Robert T. DeMarco $400 per hour
Michael S. Mitchell $300 per hour
Barbara Drake, Paralegal $125 per hour
The firm will be paid a retainer in the amount of $7,500.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Robert T. DeMarco, a partner at Demarco Mitchell, 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:
Robert T. DeMarco, Esq.
Michael S. Mitchell, Esq.
DEMARCO MITCHELL, PLLC
1255 W. 15th Street, 805
Plano, TX 75075
Tel: (972) 578-1400
Fax: (972) 346-6791
Email: robert@demarcomitchell.com
Email: mike@demarcomitchell.com
About Whitetail Development
Whitetail Development Group, LLC sought protection for relief under
Chapter 11 of the Bankruptcy Code (Bankr. W.D. Tex. Case No.
23-70138) on October 27, 2023, listing $500,001 to $1 million in
assets and $100,001 to $500,000 in liabilities.
Judge Shad Robinson presides over the case.
Robert T DeMarco, III, Esq. at Demarco Mitchell, PLLC serves as
Debtor's counsel.
WINDSOR TERRACE: Committee Taps Province LLC as Financial Advisor
-----------------------------------------------------------------
The official committee of unsecured creditors of Windsor Terrace
Healthcare, LLC and its affiliates seeks approval from the U.S.
Bankruptcy Court for the Central District of California to employ
Province, LLC as its financial advisor.
The firm's services include:
a. familiarizing and analyzing the New Windsor Debtors'
budget, assets and liabilities, and overall financial condition;
b. reviewing financial and operational information furnished
by the New Windsor Debtors';
c. executing or assisting in monitoring any sale or capital
raise process, interfacing with the New Windsor Debtors'
professionals, and advising the Committee regarding the process;
d. scrutinizing the economic terms of various agreements,
including, but not limited to, the New Windsor Debtors' retention
programs and various professional retentions;
e. analyzing the New Windsor Debtors' proposed business plans
and developing alternative scenarios, if necessary;
f. assessing the New Windsor Debtors' various pleadings and
proposed treatment of unsecured creditor claims therefrom;
g. preparing, or reviewing as applicable, avoidance action and
claim analyses;
h. assisting the Committee in reviewing the New Windsor
Debtors' financial reports, including, but not limited to,
statements of financial affairs, schedules of assets and
liabilities, budgets, and monthly operating reports;
i. analyzing filed and scheduled claims;
j. advising the Committee on the current state of this chapter
11 case;
k. advising the Committee in negotiations with the New Windsor
Debtors and third parties as necessary;
l. if necessary, participating as a witness in hearings before
the Court with respect to matters upon which Province has provided
advice; and
m. completing other activities as are approved and agreed to
by the Committee and Committee's counsel.
The firm will be paid at these rates:
Paul Huygens, Principal $1,320 per hour
Paul Navid, Senior Director $850 per hour
Paul Baik, Vice President $640 per hour
Garo Khachikian, Associate $430 per hour
Province shall not charge more than $650 per hour for its average
blended rate for all professionals working on this matter.
Paul Navid, a senior director with Province, LLC, 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:
Paul Navid
Province, LLC
2360 Corporate Circle, Suite 340
Henderson, NV 89074
Tel: (702) 685-5555
Email: pnavid@provincefirm.com
About Windsor Terrace Healthcare, LLC
Windsor Terrace Healthcare, LLC and its affiliates 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, seven 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.
Windsor Terrace Healthcare and 18 affiliates filed Chapter 11
petitions (Bankr. C.D. Calif. Lead Case No. 23-11200) on Aug. 23,
2023. Two more affiliates, Windsor Sacramento Estates, LLC and
Windsor Hayward Estates, LLC, filed Chapter 11 petitions on Sept.
29.
At the time of the filing, Windsor Terrace Healthcare disclosed up
to $10 million in both assets and liabilities.
Judge Victoria S. Kaufman oversees the cases.
The Debtors tapped Levene, Neale, Bender, Yoo, and Golubchik, LLP
as bankruptcy counsel; Hooper, Lundy & Bookman, P.C. and Hanson
Bridgett, LLP as special counsels; and Province, LLC as financial
advisor. Stretto, Inc. is the Debtor's claims, noticing and
solicitation agent.
The U.S. Trustee for Region 16 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases.
Troutman Pepper Hamilton Sanders, LLP is the Debtors' legal
counsel.
Jacob Nathan Rubin, the patient care ombudsman, is represented by
RHM Law, LLP.
WINDSOR TERRACE: No Patient Care Concern, 1st PCO Report Says
-------------------------------------------------------------
Jacob Nathan Rubin, the duly appointed patient care ombudsman,
filed with the U.S. Bankruptcy Court for the Central District of
California his first report regarding the health care facilities
operated by Windsor Terrace Healthcare, LLC, and its affiliates.
The companies own and operate 19 facilities that are classified as
"Skilled Nursing Facilities" and "Sub-Acute Facilities." The
companies also own and operate a "Home Health Agency," a "Hospice
Agency," and an "Assisted Living Facility."
The PCO observed that staffing issues are not unique to the
companies (or bankruptcy) but are a nationally recognized problem.
The companies, to correct staffing issues, have increased many
salaries and recruiting efforts. The companies created training
programs, in-house, to advance nursing education.
The PCO found that several facilities had physical plant issues
that could directly influence patient care. The PCO brought this to
the attention of the companies, who approved repairs and a
replacement system. Since the companies took possession of the
facilities, the companies have replaced various heating and air
conditioning units, water heater systems, and performed roofing
repairs.
The PCO met with both the administrator and director of nursing who
have recently taken on responsibility for the operations of the SNF
unit located in Elk Grove. The small number of grievances and falls
is unique to this facility and is directly correlated to the
leadership and staffing structure of the facility. In addition to
successful leadership strategies, the administrators are proactive
in their approach to patient care. All patient concerns are
addressed and corrected immediately before they escalate to the
complaint level.
The PCO met with the administrator who is working on improving
staffing at SNF located in Pleasant Hill. The facility has both SNF
and Sub-acute patients with a high number of admissions and
discharges from the facility. The administrator reports that
staffing will help meet quality standards to improve the short stay
star rating. There are no critical vendor or physical plant
concerns at this facility.
The PCO found that the companies are meeting the standard of care.
The PCO will continue to monitor the companies.
A copy of the PCO report is available for free at
https://urlcurt.com/u?l=RVfCm6 from PacerMonitor.com.
About Windsor Terrace Healthcare
Windsor Terrace Healthcare, LLC and its affiliates own and operate
16 skilled nursing facilities throughout the State of California,
which provide 24-hour, 7-days-a-week and 365-days-a-year care to
patients who reside at those facilities. Windsor Terrace Healthcare
et al. also own and operate an 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). They 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. Calif. Lead Case No. 23-11200) on
August 23, 2023. In the petition signed by Avrohom Tress, manager,
Windsor Terrace Healthcare disclosed up to $10 million in both
assets and liabilities.
Judge Victoria S. Kaufman oversees the cases.
Levene, Neale, Bender, Yoo and Golubchik, LLP represents the
Debtors as legal counsel. Stretto, Inc. is the Debtors' claims,
noticing and solicitation agent.
Jacob Nathan Rubin is the patient care ombudsman appointed in the
Debtors' cases.
WINTERFELL CONSTRUCTION: Amends Unsecured Claims Pay
----------------------------------------------------
Winterfell Construction, Inc., submitted a Second Amended
Subchapter V Plan of Reorganization dated November 21, 2023.
The Debtors have garnered the necessary support to reach a
consensual confirmation in this matter and is anticipated to be
confirmed on a consent basis at the confirmation hearing on or
about December 14, 2023.
For the purposes of the Plan, the Debtor's disposable income shall
be based upon a percentage of the Netflix Suit Value.
Class 3 consists of the Allowed Unsecured Claims not otherwise
classified under the Plan. The Holder(s) of Allowed Unsecured
Claim(s) shall share Pro Rata in the Unsecured Creditor Fund, which
will be funded as follows:
* "Netflix Suit Payment" – Upon the conclusion of the Netflix
Suit, should the Debtor be the prevailing party, then the Debtor
shall remit a payment to the Unsecured Creditors Fund in an amount
equal to the lesser of
-- 100% of the proceeds of the Netflix Suit Value owed to the
Debtor; or
-- 100% of all allowed unsecured claims included within Class
3 less any payments made pursuant to Para I(A) of this class.
* In the event of a payment made pursuant to Para I(A)(2), all
other payments to Class 3 shall cease.
The Pro Rata share of any Distributions from the Unsecured Creditor
Fund shall be calculated as a fraction of the amount of any such
Distribution, the numerator of which shall be the Allowed Amount of
such Allowed Class 3 Claim, and the denominator shall be the
aggregate Allowed Amount of all Allowed Class 3 Claims.
The Pro Rata share of any Distributions from the Unsecured Creditor
Fund shall be calculated as a fraction of the amount of any such
Distribution, the numerator of which shall be the Allowed Amount of
such Allowed Class 3 Claim, and the denominator shall be the
aggregate Allowed Amount of all Allowed Class 3 Claims.
The Allowed Unsecured Claims will be paid in yearly installments
over a period of 3 years in the increments. The Debtor may prepay
in whole or in part any Class 3 payment. Class 3 is Impaired under
the Plan, and the Holder of a Class 3 Claim is entitled to vote to
accept or reject the Plan.
On, or as soon as practicable after the Effective Date, the
Disbursing Agent will pay the Holders of Allowed Administrative
Expense Claims, Professional Fee Claims, and Priority Tax Claims.
The Debtor will fund the Plan through the following: (a) the
Quarterly Net Disposable Income Payments as more particularly
described in Class 3 of the Plan and incorporated herein by
reference, and (b) the net Proceeds from the recovery of any Causes
of Action and objections to claims pursued by the Reorganized
Debtor.
The Debtor Plan Payment is comprised of all of the projected
disposable income of the Debtor to be disbursed as (a) payments
made to the Holders of Allowed Administrative Expense Claims,
Professional Fee Claims, Priority Tax Claims, and Administrative
Convenience Claims or any other payments that may be due on the
Effective Date on or as soon as practicable after the Effective
Date, (b) payments made to the holders of allowed Secured Claims,
and (c) payments made to fund the Unsecured Creditor Fund. The
source of payments to fund the Unsecured Creditor Fund will be held
and disbursed in accordance with the terms of Class 3 of this
Plan.
A full-text copy of the Second Amended Plan dated November 21, 2023
is available at https://urlcurt.com/u?l=ENcuRX from
PacerMonitor.com at no charge.
Counsel for the Debtor:
Michael A. Wynn, Esq.
Burg Wynn, PA
4436 Clinton Street,
Marianna, FL 32447
Tel: (850) 526-3520
Fax: (850) 526-5210
Email: Michael@BurgWynn.com
About Winterfell Construction
Winterfell Construction, Inc. sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. N.D. Fla. Case No. 23-50015) on
Jan. 31, 2023, with as much as $500,000 in both assets and
liabilities. Judge Karen K. Specie oversees the case.
Michael A. Wynn, Esq., at Burg Wynn, PA, is the Debtor's legal
counsel.
YAK TIMBER: Jan. 10 Hearing on Disclosures and Plan
---------------------------------------------------
Judge Gary Spraker has entered an order conditionally approving the
Disclosure Statement of Yak Timber, Inc.
Jan. 3, 2024, is fixed as:
a. The last day for filing and serving written objections to the
Plan and Disclosure Statement;
b. The last day for filing written Ballots accepting or
rejecting the Plan.
A hearing to consider approval and confirmation of the debtor's
Plan and Disclosure Statement will be held in person on Jan. 10,
2024 at 2:00 p.m. in the Herbert A. Ross Historic Courtroom, Old
Federal Building, 605 West Fourth Avenue, Anchorage, Alaska.
About Yak Timber
Yak Timber Inc., a timber company in Yakutat, Alaska, sought
protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.
Alaska Case No. 23-00080) on May 11, 2023. In the petition signed
by its chief executive officer, Marvin Adams, the Debtor disclosed
up to $50 million in both assets and liabilities.
Judge Gary Spraker oversees the case.
Terry P. Draeger, Esq., at Beaty & Draeger, Ltd., is the Debtor's
legal counsel.
YC RIVERGOLD: Seeks to Extend Plan Exclusivity to March 31, 2024
----------------------------------------------------------------
YC Rivergold Hotel LLC asked the U.S. Bankruptcy Court for the
District of Alaska to extend its exclusive periods to file and
seek confirmation of a chapter 11 plan to March 31, 2024.
This is the Debtor's second request for extension. Its
exclusivity periods were previously extended to September 29,
2023 to file a plan, and December 29, 2023 to confirm a plan.
The Debtor claimed that it has moved expeditiously toward filing
and confirming a plan, delayed only by the plan process itself,
the impending holidays, and efforts to settle with the secured
lender. The Debtor explained that the issues surrounding the
secured lender's claim are extremely complicated, and continued
to require additional time to address, whether through
settlement talks or through a plan.
The Debtor asserted that granting the requested extension will
keep the case on an efficient, even keel by preventing a possible
confirmation battle while the parties explore settlement in a
more informed and guided manner, under the auspices of settlement
conferences before the judge.
YC Rivergold Hotel LLC is represented by:
Austin Barron, Esq.
STEP TWO LAW
3300 Arctic Blvd Ste 201-1090
Anchorage, AK 99503
Tel: (877) 478-3789
Email: abarron@steptwolaw.com
About YC Rivergold Hotel
YC Rivergold Hotel LLC is part of the traveler accommodation
industry. The Debtor sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Alaska Case No. 23-00072) on
April 29, 2023. In the petition signed by Baldev Johal, special
bankruptcy officer of YC Rivergold Holtel, LLC and managing
member of YC Rivergold Hotel MM, LLC, the Debtor disclosed up to
$50 million in both assets and liabilities.
Judge Gary Spraker oversees the case.
Austin K. Barron, Esq., at Step Two Law, is the Debtor's legal
counsel.
Wells Fargo, as lender, is represented by LANE POWELL LLC,
POLSINELLI PC, and Agentis PLLC.
YUNHONG GREEN: Says Continued Losses Raises Going Concern Doubt
---------------------------------------------------------------
Yunhong Green CTI Ltd disclosed in a Form 10-Q Report filed with
the U.S. Securities and Exchange Commission for the quarterly
period ended September 30, 2023, that substantial doubt exists
about the Company's ability to continue as a going concern.
The Company explained that it has a cumulative net loss from
inception to September 30, 2023, of approximately $24 million. The
Company's cash resources from operations may be insufficient to
meet its anticipated needs during the next twelve months. If the
Company does not execute its plan, it may require additional
financing to fund its future planned operations.
According to the Company, "The ability of the Company to continue
as a going concern is dependent on the Company obtaining adequate
capital to fund operating losses. Management's plans to continue as
a going concern include raising additional capital through sales of
equity securities and borrowing, continuing to focus our Company on
the most profitable elements, and exploring alternative funding
sources on an as needed basis. However, management cannot provide
any assurances that the Company will be successful in accomplishing
any of its plans. The COVID-19 pandemic, supply chain challenges,
and inflationary pressures (including cost and availability of
helium) have impacted the Company's business operations to some
extent and is expected to continue to do so and these impacts may
include reduced access to capital. In addition, the Company has a
related party, subordinated note in the amount of $1.3 million
scheduled to become due and payable on December 31, 2023. While the
Company expects to resolve this note using cash and/or equity,
there can be no assurance of success. The ability of the Company to
continue as a going concern may be dependent upon its ability to
successfully secure other sources of financing and attain
profitable operations. There is substantial doubt about the ability
of the Company to continue as a going concern [within the next 12
months]."
For the three months ended Sept. 30, 2023, the Company reported a
net loss of $967,000, compared to a net loss of $969,000 for the
same period in 2022.
About Yunhong Green
Barrington, Illinois-based Yunhong Green CTI Ltd and CTI Supply,
Inc. design, manufacture and distribute metalized balloon products
throughout the world, including balloon-inspired gift items. The
Company distributes purchased latex balloons and related products,
operates systems for the production, lamination, coating and
printing of films used for food packaging and other commercial uses
and for conversion of films to flexible packaging containers and
other products, and offers for sale purchased compostable material
solutions.
As of Sept. 30, 2023, Yunhong Green has $14,271,000 in total assets
and $11,345,000 in total liabilities.
ZOHAR: Lynn Tilton to Pay $40-Mil. Transcare Fraudulent Transfer
----------------------------------------------------------------
Alex Wolf of Bloomberg Law reports that distressed debt investor
Lynn Tilton satisfied payments of over $40 million stemming from
court judgments that she and her firm improperly stripped an
ambulance service provider of valuable assets before the company's
bankruptcy.
The Chapter 7 estate for TransCare Corp. received the funds on
Wednesday after a prolonged legal battle waged in bankruptcy and
appellate courts over Tilton's control of TransCare as director and
lender, said Bijan Amini of Amini LLC, an attorney for trustee
Salvatore LaMonica.
About the Zohar Funds
New York-based Patriarch Partners, LLC, is a private equity firm
specializing in acquisition, buyouts, and turnaround investment in
distressed American companies and brands. Patriarch Partners was
founded by Lynn Tilton in 2000. Lynn Tilton and her affiliates
held substantial equity stakes in portfolio companies, which
include iconic American manufacturing companies with tens of
thousands of employees.
The Zohar funds were created to raise money through selling a form
of notes called collateralized loan obligations to investors that
was then used to extend loans to dozens of distressed mid-size
companies, often in connection with the acquisition of those
companies out of bankruptcy.
Patriarch bought "distressed" companies via funding from a series
of collateralized loan obligations (CLOs) marketed through
Patriarch via its $2.5 billion "Zohar" funds. Tilton placed the
funds into bankruptcy in 2018 in an attempt to keep Patriarch's
portfolio from being liquidated by Zohar creditors including bond
insurer MBIA, which insured $1 billion worth of Zohar notes.
Combined debt of the funds is estimated at $1.7 billion.
Zohar CDO 2003-1, Zohar CDO 2003-1 Corp., Zohar II 2005-1,
Limited,
Zohar II 2005-1 Corp., Zohar III, Limited, and Zohar III, Corp.
(collectively, the "Zohar Funds"), sought protection under Chapter
11 of the Bankruptcy Code (Bankr. D. Del. Case Nos. 18-10512 to
18-10517) on March 11, 2018. In the petition signed by Lynn
Tilton, director, the Debtors were estimated to have $1 billion to
$10 billion in assets and $500 million to $1 billion in
liabilities.
Young Conaway Stargatt & Taylor, LLP, is the Debtors' bankruptcy
counsel.
[] Claims Trading Report -- November 2023
-----------------------------------------
There were at least 250 claims that changed hands in Chapter 11
corporate cases in November 2023:
No. of Claims
Debtor Transferred
------ -----------
FTX Trading Ltd 128
Radical Bunny, LLC 15
Proterra Inc 9
BlockFi Inc 8
Structurlam Mass Timber U.S., Inc. 8
Celsius Network LLC 7
Golden Seahorse LLC 6
Lehman Brothers Holdings Inc. 6
Yellow Corporation 6
Allied Healthcare Products, Inc 5
Sorrento Therapeutics, Inc. 5
Tehum Care Services, Inc . 5
Bed Bath & Beyond Inc 3
Green Energy Transport LLC 3
Lordstown Motors Corp. 3
Envistacom, LLC 2
Kidde-Fenwal, Inc. 2
Sam's Place Lottery & Tobacco, Inc. 2
SVB Financial Group 2
Talen Energy Supply, LLC 2
Abeinsa Holding Inc. 1
A-Tap, Inc. 1
Borrego Community Health Foundation 1
Chestnut Ridge Associates LLC 1
CJ Holding Co. 1
Copper Realty, LLC 1
Cyxtera Technologies, Inc. 1
FedNat Holding Company 1
Fox Nursing Home Corp. 1
Fox Subacute at Clara Burke, Inc. 1
Genesis Global Holdco, LLC 1
Green Group 11 LLC 1
Gypsum Resources Materials, LLC 1
Ideal Sleeves International, LLC 1
Independent Pet Partners Holdings, LLC 1
Katerra, Inc. 1
Liberty Procurement Co. Inc. 1
Miller Bell LLC 1
Naboo Royal Cruiser, LLC 1
Native Environmental, L.L.C 1
Palasota Contracting, LLC 1
Profundity LLC 1
R.B. Dwyer Co., Inc. 1
Schulte Properties LLC 1
Surge Transportation, Inc. 1
The Litigation Practice Group P.C. 1
Water Gremlin Company 1
Notable claim purchasers for the month of November 2023 are:
Argo Partners
Attn: Paul Berg
12 West 37th Street, Ste. 900
New York, NY 10018
Phone: (212) 643-5442
117 Partners Ltd.
6.20 World Trade Center
6 Bayside Road, GX11 1AA
Attn: Thomas Braziel
E-mail: tom@117partners.com
Bradford Capital Holdings, LP
Attn: Brian L. Brager
P.O. Box 4353
Clifton, NJ 07012
E-mail: bbrager@bradforcapitalmgmt.com
Canyon Capital Advisors LLC
Attn: James Pagnam
E-mail: legal@canyonpartners.com
2000 Avenue of the Stars, 11th Floor
Los Angeles, CA 90067
Cherokee Debt Acquisition, LLC
Attn: Vladimir Jelisavcic
Email: vjel@cherokeeacq.com
1384 Broadway, Suite 906
New York, NY 10018
Contrarian Funds, LLC
Attn: Keith McCormack
411 West Putnam Ave., Suite 425
Greenwich, CT 06830
Tel: 203-862-8259
Fax: 203-485-5910
E-mail: tradeclaimsgroup@contrariancapital.com
Fair Harbor Capital, LLC
Ansonia Finance Station
PO Box 237037
New York, NY 10023
Tel: (212) 967-4035
Phoenix Digital LLC
42 W 33rd St, 27B
New York, NY 10001
E-mail: tzeng@nirvana-cap.com
SP Multi Claims Holdings, LLC
2 Greenwich Plaza, First Floor
Greenwich, CT 06830
E-mail: rbeacher@pryorcashman.com
TRC Master Fund LLC
TR Capital Management LLC
Attn: Terrel Ross
PO Box 633
Woodmere, NY 11598
Tel: (516) 255-18017
[^] BOND PRICING: For the Week from Nov. 27 to Dec. 1, 2023
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Company Ticker Coupon Bid Price Maturity
------- ------ ------ --------- --------
2U Inc TWOU 2.250 51.250 5/1/2025
99 Escrow Issuer Inc NDN 7.500 35.000 1/15/2026
99 Escrow Issuer Inc NDN 7.500 34.111 1/15/2026
99 Escrow Issuer Inc NDN 7.500 34.111 1/15/2026
Acorda Therapeutics Inc ACOR 6.000 54.595 12/1/2024
Air Methods Corp AIRM 8.000 1.250 5/15/2025
Air Methods Corp AIRM 8.000 1.299 5/15/2025
American Airlines Inc AAL 11.750 109.095 7/15/2025
Amyris Inc AMRS 1.500 1.625 11/15/2026
Anagram Holdings
LLC/Anagram
International Inc AIIAHL 10.000 28.000 8/15/2026
Anagram Holdings
LLC/Anagram
International Inc AIIAHL 10.000 28.000 8/15/2026
Anagram Holdings
LLC/Anagram
International Inc AIIAHL 10.000 28.000 8/15/2026
At Home Group Inc HOME 4.875 30.250 7/15/2028
At Home Group Inc HOME 7.125 25.250 7/15/2029
At Home Group Inc HOME 7.125 17.531 7/15/2029
At Home Group Inc HOME 4.875 29.976 7/15/2028
Audacy Capital Corp CBSR 6.750 1.777 3/31/2029
Audacy Capital Corp CBSR 6.500 1.140 5/1/2027
Audacy Capital Corp CBSR 6.750 1.745 3/31/2029
BPZ Resources Inc BPZR 6.500 3.017 3/1/2049
Benefitfocus Inc BNFT 1.250 95.000 12/15/2023
Biora Therapeutics Inc BIOR 7.250 58.500 12/1/2025
Brighthouse Financial
Global Funding BHF 1.200 99.273 12/15/2023
Brixmor LLC BRX 6.900 9.875 2/15/2028
Buckeye Partners LP BPL 9.694 99.657 1/22/2078
CNG Holdings Inc CNGHLD 12.500 89.476 6/15/2024
CNG Holdings Inc CNGHLD 12.500 89.476 6/15/2024
CNG Holdings Inc CNGHLD 12.500 89.476 6/15/2024
Cano Health LLC CANHEA 6.250 6.441 10/1/2028
Cano Health LLC CANHEA 6.250 6.082 10/1/2028
Citigroup Global
Markets Holdings
Inc/United States C 4.000 100.000 12/6/2023
Citizens Financial Group CFG 6.375 85.410 N/A
Clovis Oncology Inc CLVS 1.250 8.031 5/1/2025
Curo Group Holdings Corp CURO 7.500 14.988 8/1/2028
Curo Group Holdings Corp CURO 7.500 15.202 8/1/2028
Cutera Inc CUTR 2.250 31.750 6/1/2028
Cutera Inc CUTR 2.250 40.250 3/15/2026
Cutera Inc CUTR 4.000 22.250 6/1/2029
DIRECTV Holdings
LLC / DIRECTV
Financing Co Inc DTV 6.000 13.820 8/15/2040
DIRECTV Holdings
LLC / DIRECTV
Financing Co Inc DTV 6.350 9.198 3/15/2040
DTE Energy Center LLC DTEENE 7.458 87.506 4/30/2024
Danimer Scientific Inc DNMR 3.250 29.000 12/15/2026
Diamond Sports Group
LLC / Diamond
Sports Finance Co DSPORT 5.375 2.563 8/15/2026
Diamond Sports Group
LLC / Diamond
Sports Finance Co DSPORT 6.625 2.500 8/15/2027
Diamond Sports Group
LLC / Diamond
Sports Finance Co DSPORT 5.375 2.375 8/15/2026
Diamond Sports Group
LLC / Diamond
Sports Finance Co DSPORT 5.375 1.500 8/15/2026
Diamond Sports Group
LLC / Diamond
Sports Finance Co DSPORT 6.625 0.404 8/15/2027
Diamond Sports Group
LLC / Diamond
Sports Finance Co DSPORT 5.375 1.063 8/15/2026
Diamond Sports Group
LLC / Diamond
Sports Finance Co DSPORT 5.375 2.463 8/15/2026
Endo Finance LLC /
Endo Finco Inc ENDP 5.375 5.000 1/15/2023
Endo Finance LLC /
Endo Finco Inc ENDP 5.375 5.000 1/15/2023
Energy Conversion Devices ENER 3.000 0.551 6/15/2013
Entergy Louisiana LLC ETR 5.590 99.730 10/1/2024
Enviva Partners LP /
Enviva Partners
Finance Corp EVA 6.500 49.268 1/15/2026
Enviva Partners LP /
Enviva Partners
Finance Corp EVA 6.500 49.465 1/15/2026
Esperion Therapeutics Inc ESPR 4.000 47.250 11/15/2025
Exela Intermediate LLC /
Exela Finance Inc EXLINT 11.500 19.500 7/15/2026
Exela Intermediate LLC /
Exela Finance Inc EXLINT 11.500 19.563 7/15/2026
FNB Corp/PA FNB 4.950 92.991 2/14/2029
Federal Farm Credit
Banks Funding Corp FFCB 2.960 99.941 12/5/2023
Federal Home Loan Banks FHLB 3.000 89.505 2/23/2024
Federal Home Loan Banks FHLB 3.500 89.606 2/23/2024
Federal Home Loan Banks FHLB 0.750 98.070 12/27/2023
Federal Home Loan Banks FHLB 5.000 99.415 12/8/2023
Federal Home Loan Banks FHLB 5.000 99.416 12/8/2023
Federal Home Loan Banks FHLB 3.375 89.583 2/23/2024
Federal Home Loan
Mortgage Corp FHLMC 5.125 99.760 12/5/2025
Federal National
Mortgage Association FNMA 0.320 99.372 12/7/2023
Federal National
Mortgage Association FNMA 0.350 92.877 2/23/2024
Federal National
Mortgage Association FNMA 5.250 93.878 2/21/2024
Federal National
Mortgage Association FNMA 0.350 92.876 2/23/2024
Fisker Inc FSR 2.500 21.000 9/15/2026
GNC Holdings Inc GNC 1.500 0.410 8/15/2020
Goldman Sachs
Group Inc/The GS 3.350 99.341 12/10/2023
Goodman Networks Inc GOODNT 8.000 1.000 5/31/2022
H-Food Holdings LLC /
Hearthside
Finance Co Inc HEFOSO 8.500 25.250 6/1/2026
H-Food Holdings LLC /
Hearthside
Finance Co Inc HEFOSO 8.500 25.250 6/1/2026
Hallmark Financial
Services Inc HALL 6.250 16.679 8/15/2029
HomeStreet Inc HMST 3.500 35.500 1/30/2032
Inseego Corp INSG 3.250 40.750 5/1/2025
Invacare Corp IVC 4.250 0.531 3/15/2026
Invacare Corp IVC 5.000 83.125 11/15/2024
JPMorgan Chase Bank NA JPM 2.000 84.192 9/10/2031
Johnson & Johnson JNJ 3.375 99.996 12/5/2023
Karyopharm
Therapeutics Inc KPTI 3.000 50.750 10/15/2025
Ligado Networks LLC NEWLSQ 15.500 18.500 11/1/2023
Ligado Networks LLC NEWLSQ 15.500 21.478 11/1/2023
Lumen Technologies Inc LUMN 6.875 31.876 1/15/2028
Lumen Technologies Inc LUMN 4.500 21.054 1/15/2029
Lumen Technologies Inc LUMN 4.500 21.396 1/15/2029
MBIA Insurance Corp MBI 16.915 4.250 1/15/2033
MBIA Insurance Corp MBI 16.897 3.367 1/15/2033
Mashantucket Western
Pequot Tribe MASHTU 7.350 43.750 7/1/2026
Morgan Stanley MS 1.800 74.686 8/27/2036
National Securities
Clearing Corp NSCCLF 0.400 99.914 12/7/2023
OMX Timber Finance
Investments II LLC OMX 5.540 0.850 1/29/2020
Omeros Corp OMER 5.250 50.451 2/15/2026
Pacific Premier
Bancorp Inc PPBI 4.875 84.973 5/15/2029
Photo Holdings
Merger Sub Inc SFLY 8.500 40.110 10/1/2026
Photo Holdings
Merger Sub Inc SFLY 8.500 40.110 10/1/2026
Polar US Borrower
LLC / Schenectady
International
Group Inc SIGRP 6.750 37.174 5/15/2026
Polar US Borrower
LLC / Schenectady
International
Group Inc SIGRP 6.750 36.009 5/15/2026
Porch Group Inc PRCH 0.750 27.250 9/15/2026
RELX Inc RELLN 7.200 105.329 8/1/2027
Renco Metals Inc RENCO 11.500 24.875 7/1/2003
Rite Aid Corp RAD 7.700 5.000 2/15/2027
Rite Aid Corp RAD 6.875 7.119 12/15/2028
Rite Aid Corp RAD 6.875 7.119 12/15/2028
RumbleON Inc RMBL 6.750 50.520 1/1/2025
SBL Holdings Inc SECBEN 7.000 60.070 N/A
SBL Holdings Inc SECBEN 7.000 64.125 N/A
SVB Financial Group SIVB 4.000 1.563 N/A
SVB Financial Group SIVB 3.500 62.000 1/29/2025
SVB Financial Group SIVB 4.250 1.750 N/A
SVB Financial Group SIVB 4.100 1.875 N/A
SVB Financial Group SIVB 4.700 1.875 N/A
Service Properties Trust SVC 4.350 99.762 10/1/2024
Shift Technologies Inc SFT 4.750 0.875 5/15/2026
Signature
Bank/New York NY SBNY 4.000 7.000 10/15/2030
Signature
Bank/New York NY SBNY 4.125 6.670 11/1/2029
Spanish Broadcasting
System Inc SBSAA 9.750 59.168 3/1/2026
Synovus Financial Corp SNV 5.900 92.430 2/7/2029
Talen Energy Supply LLC TLN 10.500 34.750 1/15/2026
Talen Energy Supply LLC TLN 6.500 33.399 6/1/2025
Talen Energy Supply LLC TLN 6.500 33.375 9/15/2024
Talen Energy Supply LLC TLN 6.500 33.375 9/15/2024
Talen Energy Supply LLC TLN 7.000 33.375 10/15/2027
Talen Energy Supply LLC TLN 10.500 34.750 1/15/2026
Talen Energy Supply LLC TLN 10.500 34.750 1/15/2026
TerraVia Holdings Inc TVIA 5.000 4.644 10/1/2019
Tricida Inc TCDA 3.500 10.108 5/15/2027
US Renal Care Inc USRENA 10.625 41.250 7/15/2027
US Renal Care Inc USRENA 10.625 40.750 7/15/2027
UpHealth Inc UPH 6.250 34.716 6/15/2026
Veritone Inc VERI 1.750 35.250 11/15/2026
WeWork Cos LLC /
WW Co-Obligor Inc WEWORK 5.000 1.000 7/10/2025
WeWork Cos LLC /
WW Co-Obligor Inc WEWORK 5.000 1.250 7/10/2025
WeWork Cos US LLC WEWORK 15.000 31.000 8/15/2027
WeWork Cos US LLC WEWORK 7.875 1.750 5/1/2025
WeWork Cos US LLC WEWORK 11.000 18.000 8/15/2027
WeWork Cos US LLC WEWORK 7.875 2.500 5/1/2025
WeWork Cos US LLC WEWORK 15.000 35.250 8/15/2027
WeWork Cos US LLC WEWORK 11.000 18.164 8/15/2027
WeWork Cos US LLC WEWORK 12.000 1.501 8/15/2027
Wesco Aircraft
Holdings Inc WAIR 9.000 9.317 11/15/2026
Wesco Aircraft
Holdings Inc WAIR 13.125 2.412 11/15/2027
Wesco Aircraft
Holdings Inc WAIR 9.000 9.317 11/15/2026
Wesco Aircraft
Holdings Inc WAIR 13.125 2.412 11/15/2027
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
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*********
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Troubled Company Reporter is a daily newsletter co-published
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*** End of Transmission ***