/raid1/www/Hosts/bankrupt/TCR_Public/231219.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Tuesday, December 19, 2023, Vol. 27, No. 352
Headlines
1290 RIVER ROAD: Hires Dosch Marshall as Real Estate Broker
200 HUECO SPRINGS: Hires Dosch Marshall as Real Estate Broker
25350 PLEASANT VALLEY: Hires John P. Forest as Bankruptcy Counsel
3071 RIVER ROAD: Hires Dosch Marshall as Real Estate Broker
3071 RIVER ROAD: Seeks Cash Collateral Access
469 DEKALB: Hires Law Office of Narissa A. Joseph as Counsel
8400 RIVER ROAD: Hires Dosch Marshall as Real Estate Broker
8515 RIVER ROAD: Hires Dosch Marshall as Real Estate Broker
AIR INDUSTRIES: Announces Results for Third Quarter Ended Sept. 30
ALLIED RECYCLING: Lender Seeks to Prohibit Cash Collateral Access
AMERICANAS SA: Bondholders' Motion to See Probe Denied
AMERICANAS SA: Daycoval, Votorantim Support Reorganization Plan
AMYRIS INC: Sale of Biossance Skincare to THG Approved
AMYRIS INC: Unsecureds to Recover 5.8% to 7.5% of Claims in Plan
ANTIGUA INVESTMENTS: Hires Ahrens Realty Company as Realtor
AP CORE II: Moody's Assigns 'B2' CFR, Outlook Stable
APEX TOOL: Moody's Cuts CFR to 'Caa2', Outlook Negative
ARCHDIOCESE OF NEW YORK: Court Tosses Sex Abuse Claims Suit
ARISTON LOGISTICS: Seeks Cash Collateral Access
ARTISAN PACKAGING: Seeks Cash Collateral Access
ASHFORD HOSPITALITY: Justin Coe Replaces Mark Nunneley as CAO
AZAR BOUJARAN-GHOMI: Hires Wisdom Professional as Accountant
BACKFORTY VENTURES: Court OKs Interim Cash Collateral Access
BED BATH: Panel Dings Suit Over 401(k) Bankruptcy Losses
BENTTREE CUSTOM: Unsecured Creditors to Split $80K over 3 Years
BLACK KNIGHT: Moody's Ups Rating on $1BB Unsecured Notes From Ba3
BOY SCOUTS OF AMERICA: Prelim Bid to Dismiss Appeal Denied
BURGESS POINT: S&P Alters Outlook to Negative, Affirms 'B-' ICR
CARRIAGE SERVICES: Moody's Affirms B2 CFR, Outlook Remains Stable
CEC ENTERTAINMENT: Chuck E. Cheese Reportedly Exploring Sale
CHARLESTON CHILDREN'S: Seeks Cash Collateral Access
CHELAN COUNTY PHD 2: Moody's Affirms 'Ba1' Rating on GOLT Bonds
CHESTER T. MACK: Hires Taps E.P. Bud Kirk as Bankruptcy Attorney
CHIEF FIRE: Case Summary & 20 Largest Unsecured Creditors
COUNTY INVESTMENT: Hires Pendergraft & Simon as Counsel
CUETO CONSULTING: Hires Eric A. Liepins PC as Counsel
CYTOSORBENTS CORP: Closes $10.3 Million Registered Direct Offering
DA VINCI DENTAL: Unsecured Creditors to Split $44K over 3 Years
DIAMOND SPORTS: Sinclair Can't Force Management Fees
DIGITAL ALLY: Amends Lock-Up Agreement With Clover Leaf
DIOCESE OF ROCHESTER: Continental Insurance Files Reorganizing Plan
DMG SECURITY: Bid to Use Cash Collateral Denied
DOBBS TRUCKING: Seeks to Hire Newman & Newman as Counsel
DOMUS BWW: Seeks to Hire Asterion Inc. as Financial Advisor
DONELSON CORPORATE: Files Emergency Bid to Use Cash Collateral
DURAND LAND: U.S. Trustee Unable to Appoint Committee
EBIX INC: Case Summary & 30 Largest Unsecured Creditors
EBIX INC: Files Chapter 11 to Facilitate Sale
EDC 2370: Court OKs Interim Cash Collateral Access
EDGEWOOD FOOD: Hires Bharti Desai CPA P.C. as Accountant
ENSIGN ENERGY: S&P Withdraws 'CCC+' Issuer Credit Rating
ENTRADA DEVELOPMENT: Hires Joyce W. Lindauer Attorney as Counsel
FANJOY CO: Court OKs Cash Collateral Access Thru Jan 2024
FINANCE OF AMERICA: Moody's Cuts CFR to 'Caa2', Outlook Negative
FLEXACAR LLC: Hires Hires John P. Forest as Bankruptcy Counsel
FR BR HOLDINGS: Moody's Lowers PDR to D-PD, Outlook Negative
FR BR HOLDINGS: S&P Downgrades ICR to 'D' on Missed Payments
FREDRICK LEE: Hires Schwarz CPA PC as Accountant
FREE SPEECH: Hook Families Offered by Jones $55M Over 10 Years
FRONTIER SAND: U.S. Trustee Unable to Appoint Committee
FTX GROUP: Court Asks IRS to Justify $24 Billion Tax Bill
GARCIA GRAIN: Hires W.T. Appraisal Inc. as Expert Appraiser
GAUCHO GROUP: Taps Basile Law Firm as Securities Litigation Counsel
GLOBALSTAR INC: Issues Warrant to Thermo to Purchase Common Shares
GOPHER RESOURCE: S&P Affirms 'CCC+' ICR, Outlook Negative
GOURMET PLUS: Court OKs Interim Cash Collateral Access
GREENIDGE GENERATION: Announces New Partnership and Equity Swap
GREGORY TRUCKING: Case Summary & Eight Unsecured Creditors
GROWLIFE INC: Taps M&K CPAS as New Auditor
GUARDIAN BASEBALL: Hires Shymanski & Company as Accountant
H & H FAST: Case Summary & Seven Unsecured Creditors
HOWARD INTERVENTION: Court OKs Cash Collateral Access Thru Jan 2024
IMEDIA BRANDS: Trustee Urges Court to Reject Chapter 11 Plan
INVESTMENT PROPERTIES: U.S. Trustee Unable to Appoint Committee
JACON LLC: Court OKs Cash Collateral Access Thru Feb 2024
JEFFERSON LA BREA: Court OKs Cash Collateral Access Thru March 2024
KOFC LTD: Court OKs Interim Cash Collateral Access
KORE WIRELESS: S&P Withdraws 'B-' Issuer Credit Rating
LA MOUNT GROUP: Seeks Cash Collateral Access
LIFTUP COMMUNITIES: Hires Benjamin Legal Services as Counsel
LOJERKY INC: Unsecureds Will Get 100% of Claims in Sale Plan
M & T ELEVATIONS: Hires Quilling Selander as Legal Counsel
MAGENTA BUYER: S&P Downgrades ICR to 'CCC+', Outlook Stable
MAGNO LLC: Seeks to Hire Corbett Accounting as Accountant
MAGNO LLC: Seeks to Hire Tonkop Torp LLP as Counsel
MALLINCKRODT PLC: Latham & Watkins Bills $5.7M in 2nd Bankruptcy
MBIA INC: BOD Declares Extraordinary Cash Dividend on Common Shares
METROPOLITAN BREWING: Loeb to Auction Assets in Mid-January 2024
MOZ CORP: Court OKs Interim Cash Collateral Access
NEW HORIZON RE: Unsecureds to Get 5 Cents on Dollar in Plan
NEXERA MEDICAL: Unsecureds to Get $147.5K in Subchapter V Plan
OCEAN POWER: Incurs $7.2 Million Net Loss in Second Quarter
OCEAN POWER: Secures Multi-Buoy Contract for US Government Agencies
ORTHOCARE SOLUTIONS: Voluntary Chapter 11 Case Summary
PANGEA ORGANICS: Voluntary Chapter 11 Case Summary
PEGASUS HOME: SSG Advises Business in Blue Torch Sale
PENNSYLVANIA REAL ESTATE: Gets OK to Hire Kroll as Claims Agent
PLASKOLITE PPC II: Moody's Affirms 'B3' CFR, Outlook Stable
PONTOON BREWING: Files Emergency Bid to Use Cash Collateral
PROVIDENT COMMONWEALTH: S&P Affirms 'BB' ICR, Outlook Stable
RED ROOF: Court OKs Cash Collateral Access Thru Dec 19
RI-TAR ENTERPRISES: Hires Eric A. Liepins PC as Counsel
RITE AID CORP: Unions Denied Role in Talks With Bidders
ROAD LION: Court OKs Cash Collateral Access Thru Jan 2024
SAFEMOON US LLC: Starts Chapter 7 Bankruptcy Proceeding
SCFT2 LLC: Hires Elliman Real Estate as Real Estate Broker
SILICON VALLEY: SVB Financial Wants Seized $2-Bil. Outside Ch. 11
SMILEDIRECTCLUB LLC: Drops Antitrust Suit Amid Liquidation Plan
SPI ENERGY: Adjourns Annual Meeting Until Dec. 22
STRATEGIES 360: U.S. Trustee Appoints Creditors' Committee
STRATHCONA RESOURCES: Moody's Raises CFR to 'B1', Outlook Stable
TEGNA INC: Board of Directors Adopts Amendments to By-laws
TRAXCELL TECHNOLOGIES: Seeks to Hire Ramey LLP as Counsel
UNCONDITIONAL LOVE: Committee Hires Hogan Lovells as Counsel
UNCONDITIONAL LOVE: Committee Hires Pachulski as Counsel
UNCONDITIONAL LOVE: Committee Taps Force Ten as Financial Advisor
UNITED HERITAGE: A.M. Best Cuts Fin. Strength Rating to C++
VENTURE INC: Committee Hires Fishman Haygood LLP as Counsel
VORNADO REALTY: S&P Downgrades ICR to 'BB+', Outlook Negative
WEATHERFORD INT'L: Appeals Court Tosses Misstatements Suit
WILLIAMSBURG BOUTIQUE: Hires Pastore LLC as Special Counsel
WOMEN'S CARE: Moody's Affirms 'B3' CFR, Outlook Remains Negative
[*] Leading Retailers That Closed Down or Went Bankrupt in 2023
[] Han Kun LLP Opens New York City Office
[^] Large Companies with Insolvent Balance Sheet
*********
1290 RIVER ROAD: Hires Dosch Marshall as Real Estate Broker
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1290 River Road PS LLC, a Series of RRED HC, LLC seeks approval
from the U.S. Bankruptcy Court for the Western District of Texas to
employ Dosch Marshall Real Estate as real estate broker.
The firm will market and sell the Debtor's real property a 6.6
Acres located at 1290 River Rd. New Braunfels, Texas 78130.
The firm will be paid a commission of 6 percent of the gross sales
price.
As disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Tripp Rich
Dosch Marshall Real Estate
777 Post Oak Blvd, Suite 255
Houston, TX 77056
Tel: (713) 955-3120
About 1290 River Road PS LLC
a Series of RRED HC, LLC
1290 River Road PS LLC, a Series of RRED HC, LLC in New Braunfels,
TX, filed its voluntary petition for Chapter 11 protection (Bankr.
W.D. Tex. Case No. 23-51534) on November 6, 2023, listing as much
as $1 million to $10 million in both assets and liabilities. by
Robert Kane as manager, signed the petition.
Judge Craig A. Gargotta oversees the case.
THE SMEBERG LAW FIRM serve as the Debtor's legal counsel.
200 HUECO SPRINGS: Hires Dosch Marshall as Real Estate Broker
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200 Hueco Springs Loop PS LLC, a Series of RRED HC, LLC seeks
approval from the U.S. Bankruptcy Court for the Western District of
Texas to employ Dosch Marshall Real Estate as real estate broker.
The firm will market and sell the Debtor's real property a 4.6
Acres located at 200 Hueco Springs Loop, New Braunfels, Texas
78132.
The firm will be paid a commission of 6 percent of the gross sales
price.
As disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Tripp Rich
Dosch Marshall Real Estate
777 Post Oak Blvd, Suite 255
Houston, TX 77056
Tel: (713) 955-3120
About 200 Hueco Springs Loop PS LLC
a Series of RRED HC, LLC
200 Hueco Springs Loop PS LLC, a Series of RRED HC, LLC, filed a
Chapter 11 bankruptcy petition (Bankr. W.D. Tex. Case No. 23-51535)
on November 6, 2023, disclosing under $1 million in both assets and
liabilities.
The Debtor is represented by THE SMEBERG LAW FIRM.
25350 PLEASANT VALLEY: Hires John P. Forest as Bankruptcy Counsel
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25350 Pleasant Valley Drive LLC seeks approval from the U.S.
Bankruptcy Court for the Eastern District of Virginia to employ
John P. Forest, II, Esq., an attorney practicing in Fairfax, Va.,
to handle its Chapter 11 case.
The firm's services include giving the Debtor legal advice with
respect to its powers and duties as a debtor and performing all
other legal services for the Debtor which may be necessary to
advance this case to a conclusion.
Mr. Forest will be compensated at his hourly rate of $400.
In a court filing, Mr. Forest disclosed that he is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
The attorney can be reached at:
John P. Forest, II, Esq.
11350 Random Hills Rd., Suite 700
Fairfax, VA 22030
Telephone: (703) 691-4940
Email: john@forestlawfirm.com
About 25350 Pleasant Valley Drive LLC
25350 Pleasant Valley Drive LLC, filed a Chapter 11 bankruptcy
petition (Bankr. E.D. Va. Case No. 23-11983) on December 6, 2023.
The Debtor hires John P. Forest, II, Esq. as counsel.
3071 RIVER ROAD: Hires Dosch Marshall as Real Estate Broker
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3071 River Road PS LLC, a Series of RRED HC, LLC seeks approval
from the U.S. Bankruptcy Court for the Western District of Texas to
employ Dosch Marshall Real Estate as real estate broker.
The firm will market and sell the Debtor's real property a 3.6
Acres located 3071 River Road, New Braunfels, Texas 78132.
The firm will be paid a commission of 6 percent of the gross sales
price.
As disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Tripp Rich
Dosch Marshall Real Estate
777 Post Oak Blvd, Suite 255
Houston, TX 77056
Tel: (713) 955-3120
About 3071 River Road PS LLC
a Series of RRED HC, LLC
3071 River Road PS, LLC a Series of RRED HC, LLC in New Braunfels,
TX, filed its voluntary petition for Chapter 11 protection (Bankr.
W.D. Tex. Case No. 23-51536) on November 6, 2023, listing as much
as $1 million to $10 million in both assets and liabilities. Robert
Kane as manager, signed the petition.
Judge Craig A. Gargotta oversees the case.
THE SMEBERG LAW FIRM serve as the Debtor's legal counsel.
3071 RIVER ROAD: Seeks Cash Collateral Access
---------------------------------------------
3071 River Road PS LLC, a Series of RRED HC, LLC asks the U.S.
Bankruptcy Court for the Western District of Texas, San Antonio,
Division, for authority to use cash collateral and provide adequate
protection to the pre-petition lender.
The Debtor requires the use of cash collateral to make monthly
operating and utility expenses required for the Debtor's business
functions, and then maintain all other payments for post-petition
transactions in the regular course of business.
After successfully founding and operating social, river-centric
ventures for nearly a decade, Mr. Robert Kane's small businesses,
including a riverfront restaurant, a general store, and multiple
event venues -- like many other small businesses -- hit a wall due
to the COVID-19 pandemic.
On April 22, 2021, Robert Kane formed RRED HC LLC, a series LLC, to
create various series to hold loans with a new lender, Rock 30A
Investments, LLC. Five series were created for this purpose: 1)
Series 8515 River Road PS LLC, 2) Series 8400 River Road PS LLC, 3)
Series 1290 River Road PS LLC, 4) Series 3071 River Road PS LLC,
and 5) Series 200 Hueco Springs Loop PS LLC.
In total, 30A loaned $7.225 million across the Series LLCs at
varying high interest rates, ranging from 14-17% in the two-year
payback period. In discussions leading up to the Loan execution,
the parties understood RRED's ability to repay the Loan would be
contingent on the receipt of COVID-19 relief, including CARES Act
and PPP funds, which were calculated to amount to $2.2 million
dollars.
Without the COVID relief, RRED would not be able to pay down the
Loan.
In addition to holding the loans, each Series LLC houses ventures,
which generate or are expected to generate capital in the near
future.
3071 River Road PS LLC was created on July 1, 2021, to refinance
the real estate loan and is currently undergoing development to
house a 50-unit town attached housing development. Additionally,
3071 River Road PS LLC has the River Road Ice House, which is a bar
and concert venue. It is not currently operating as no events are
scheduled during the offseason winter. However, events could be
booked any time and the first events are likely to begin in
February 2024. Even while shows are not operating, there is a
regular need for cash collateral to pay insurance, utilities and
basic maintenance.
Shortly after creating the Series LLCs to refinance, the COVID-19
relief funds waned. RRED could not survive the debt absent the
expected $2.2 million in relief. Without the COVID relief or
flexibility from its lender, RRED was forced to seek bankruptcy
protection as it reorganizes in the post-COVID period. Debtor plans
to sell real estate to reduce its debt and to obtain new financing
over the course of its reorganization to achieve stable financial
footing. Use of cash collateral is necessary to avoid irreparable
harm to the estate.
The Debtor contends that replacement liens and adequate assurance
payments from Debtor's operations would adequately protect 30A
during what Debtor believes will be a short bankruptcy process.
A copy of the motion is available at https://urlcurt.com/u?l=05TaJV
from PacerMonitor.com.
About 3071 River Road PS, LLC a Series of RRED HC, LLC
3071 River Road PS, LLC a Series of RRED HC, LLC sought protection
under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Tex. Case
No. 23-51536) on November 6, 2023. In the petition signed by Robert
Kane, manager, the Debtor disclosed up to $10 million in both
assets and liabilities.
Judge Craig A. Gargotta oversees the case.
Ronald Smeberg, Esq., at the Smeberg Law Firm, represents the
Debtor as legal counsel.
469 DEKALB: Hires Law Office of Narissa A. Joseph as Counsel
------------------------------------------------------------
469 Dekalb LLC seeks approval from the U.S. Bankruptcy Court for
the Eastern District of New York to employ Law Office of Narissa A.
Joseph as counsel.
The firm's services include:
(a) consulting with the Debtor concerning the administration
of its Chapter 11 case;
(b) investigating the Debtor's past transactions, commencing
actions with respect to its avoiding powers under the Bankruptcy
Code, and advising the Debtor with respect to transactions entered
into during the pendency of the case;
(c) assisting the Debtor in the formulation of a Chapter 11
plan; and
(d) providing other legal services as may be required by the
Debtor in the interest of the estate.
The firm will be paid at these rates:
Partner $350 to 400 per hour
Associate $275 to 300 per hour
Paralegal $75 to $100 per hour
In addition, the firm will receive reimbursement for out-of-pocket
expenses incurred.
The firm received a retainer in the amount of $8,262 from the
Debtor.
Narissa Joseph, Esq., a partner at the Law Office of Narissa A.
Joseph, disclosed in a court filing that her firm is a
"disinterested person" pursuant to Section 101(14) of the
Bankruptcy Code.
The firm can be reached at:
Narissa A. Joseph, Esq.
Law Office Of Narissa A. Joseph
305 Broadway, Suite 1001
New York, NY 10007
Tel: (212) 233-3060
Email: njosephlaw@aol.com
About 469 Dekalb LLC
469 Dekalb LLC, filed a Chapter 11 bankruptcy petition (Bankr.
E.D.N.Y. Case No. 23-42944) on August 17, 2023, disclosing under $1
million in both assets and liabilities. The Debtor is represented
by LAW OFFICE OF NARISSA A. JOSEPH.
8400 RIVER ROAD: Hires Dosch Marshall as Real Estate Broker
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8400 River Road PS LLC, a Series of RRED HC, LLC seeks approval
from the U.S. Bankruptcy Court for the Western District of Texas to
employ Dosch Marshall Real Estate as real estate broker.
The firm will market and sell the Debtor's real property a 1.721
Acres located at 8400 River Rd., New Braunfels, Texas 78132.
The firm will be paid a commission of 6 percent of the gross sales
price.
As disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Tripp Rich
Dosch Marshall Real Estate
777 Post Oak Blvd, Suite 255
Houston, TX 77056
Tel: (713) 955-3120
About 8400 River Road PS LLC
a Series of RRED HC, LLC
8400 River Road PS LLC, a Series of RRED HC, LLC in New Braunfels,
TX, filed its voluntary petition for Chapter 11 protection (Bankr.
W.D. Tex. Case No. 23-51537) on November 6, 2023, listing as much
as $1 million to $10 million in both assets and liabilities. Robert
Kane as manager, signed the petition.
Judge Craig A. Gargotta oversees the case.
THE SMEBERG LAW FIRM serve as the Debtor's legal counsel.
8515 RIVER ROAD: Hires Dosch Marshall as Real Estate Broker
-----------------------------------------------------------
8515 River Road PS LLC, a Series of RRED HC, LLC seeks approval
from the U.S. Bankruptcy Court for the Western District of Texas to
employ Dosch Marshall Real Estate as real estate broker.
The firm will market and sell the Debtor's real property a 12.45
Acres located at 8515 River Road., New Braunfels, Texas 78132.
The firm will be paid a commission of 6 percent of the gross sales
price.
As disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Tripp Rich
Dosch Marshall Real Estate
777 Post Oak Blvd, Suite 255
Houston, TX 77056
Tel: (713) 955-3120
About 8515 River Road PS LLC,
a Series of RRED HC, LLC
8515 River Road PS LLC, a Series of RRED HC, LLC in New Braunfels,
TX, filed its voluntary petition for Chapter 11 protection (Bankr.
W.D. Tex. Case No. 23-51538) on November 6, 2023, listing as much
as $1 million to $10 million in both assets and liabilities. Robert
Kane as manager, signed the petition.
Judge Michael M. Parker oversees the case.
THE SMEBERG LAW FIRM serve as the Debtor's legal counsel.
AIR INDUSTRIES: Announces Results for Third Quarter Ended Sept. 30
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Air Industries Group has announced its financial results for the
third quarter ended September 30, 2023.
Commenting on the recent results, Lou Melluzzo, CEO of Air
Industries Group, expressed optimism about the Company's
trajectory: "Our third quarter of 2023 was challenging and was
impacted by shortages of critical raw materials for a certain
product. Thankfully, these material shortages have begun to ease
and we expect business to rebound in the fourth quarter and 2024 to
higher levels of sales and EBITDA."
Melluzzo continued, "Our business is beginning to show tangible
improvements. Bookings measured on a trailing three-month basis, at
September 30, 2023, have more than doubled to over $6 million a
month compared to December 31, 2022. We have secured a strategic
follow on contract to support the U.S. Navy's E-2D Aircraft
program, solidifying Air Industries' position as the sole provider
of this mission-critical aircraft. As part of this contract, the
Company was awarded a not-to-exceed $8.9 million purchase order to
fund the acquisition of long lead-time product to support future
production.
"These wins are the result of the Company's continued investment
in its business and its people. Because of this investment, we have
great momentum in business development and expect to continue to
drive our bookings and sales levels higher from here".
Third Quarter 2023 Results include:
* Consolidated net sales for the third quarter ended September 30,
2023 were $12.3 million, a decrease of $912,000 or (6.9%) from
$13.2 million in the second quarter of 2023, and $985,000 or (7.4%)
lower than sales of $13.3 million in the third quarter of 2022.
* Consolidated gross profit for the third quarter of 2023 was $1.2
million, a decrease of $942,000 or (43.4%) from $2.2 million in the
second quarter of 2023, and $1.0 million or (45.2%) lower than $2.2
million in the third quarter of 2022.
* Gross profit margin was 10.0% of sales for the third quarter of
2023, 16.4% of sales for the second quarter of 2023, and 16.9% for
the third quarter of 2022.
* Operating expenses for the third quarter of 2023 were $2.0
million, 3.5% lower than $2.1 million in the second quarter of 2023
and 2.4% lower than $2.1 million in the 2022 third quarter.
* The Company incurred an operating loss of $796,000 in the third
quarter of 2023 compared with operating income of $72,000 in the
2023 second quarter, and operating income of $169,000 in the third
quarter of 2022.
* Interest and financing costs for the three months ended September
30, 2023 were $516,000 compared with $480,000 in the second quarter
of 2023, and $323,000 for the three months ended September 30,
2022. The increases in interest expense resulted from increases in
the prime rate and from higher loan balances.
* The net loss for the third quarter of 2023 was $1.3 million
compared with a net loss of $395,000 in the second quarter of 2023,
and a net loss of $142,000 in the third quarter of 2022.
Nine-Month 2023 Results include:
* For the first nine months of 2023, consolidated net sales totaled
$38.0 million, a decrease of $1.3 million or (3.3%) from $39.3
million in the comparable 2022 period.
* Consolidated gross profit for the first nine months of 2023 was
$5.3 million, a decrease of $1.5 million or (21.8%) from $6.7
million in the comparable period of 2022. Gross profit margin was
13.9% of sales for the nine months ended September 30, 2023
compared with 17.1% for the first nine months of 2022.
* Operating expenses for the nine months ended September 30, 2023
were $6.2 million, increasing $44,000 from $6.1 million in the 2022
period.
* The operating loss for the nine months ended September 30, 2023
was $882,000 compared with operating income of $626,000 reported
for the 2022 period.
* Interest and financing costs for the nine months ended September
30, 2023 totaled $1.5 million compared with $935,000 in the 2022
period, an increase of $537,000 or 57.4%, mainly due to the effect
of increases in the prime rate and from higher loan balances.
* Net loss for the nine months ended September 30, 2023 was $2.3
million, compared with a net loss of $177,000 in the 2022 period.
* Adjusted EBITDA for the nine months ended September 30, 2023 was
$1.3 million.
A full-text copy of the regulatory filing is available at:
https://www.sec.gov/Archives/edgar/data/1009891/000121390023093798/ea189646ex99-1_airindust.htm
About Air Industries
Bay Shore, New York-based Air Industries Group is a manufacturer of
aerospace components primarily for the defense industry. It became
a public company in 2005. Air Industries Group is a holding company
with three subsidiaries, AIM, NTW, and SEC.
As of September 30, 2023, Air Industries has $49,719,000 in total
assets, $34,770,000 in total liabilities, and 14,949,000 in total
stockholders' equity.
ALLIED RECYCLING: Lender Seeks to Prohibit Cash Collateral Access
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Secured Creditor Commercial Credit Group, Inc. asks the U.S.
Bankruptcy Court for the Middle District of Florida, Fort Myers
Division, to prohibit Allied Recycling, Inc. from using cash
collateral.
The Debtor is indebted to CCG under a Negotiable Promissory Note
and Security Agreement dated February 2, 2023, under which CCG
financed the Debtor's acquisition of construction equipment.
In order to secure payment of the obligations under the Note, the
Debtor granted CCG a security interest in the property.
CCG perfected its security interest in the aforementioned
collateral by filing a UCC Financing Statement with the Florida
Secured Transaction Registry on February 2, 2023.
As of November 19, 2023, the Debtor owed CCG $55,707 with interest
accruing at $27.85 per day.
The Debtor defaulted under the Note by, inter alia, the filing of
its bankruptcy petition in the action.
CCG's believes that it holds a first priority lien on the Debtor's
accounts receivable and any other cash collateral. As of the date
hereof, however, the Debtor has not filed any motion for order
authorizing use of cash collateral.
CCG believes that good cause exists to prohibit or condition the
Debtor's use of CCG's cash collateral upon providing CCG with
adequate protection, pursuant to 11 U.S.C. sections 363(c)(2), (e)
and 105(a). Additionally, the Debtor should be required to account
for the use of any cash collateral since the Petition Date.
A copy of the motion is available at https://urlcurt.com/u?l=4kLj1g
from PacerMonitor.com.
About Allied Recycling
Allied Recycling, Inc. filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. M.D. Fla. Case No.
23-01400) on Nov. 17, 2023, with $2,134,337 in assets and
$9,675,029 in liabilities. Todd Adamson, vice-president, signed the
petition.
Judge Caryl E. Delano oversees the case.
Leon Williamson, Esq., at Williamson Law Firm represents the Debtor
as bankruptcy counsel.
AMERICANAS SA: Bondholders' Motion to See Probe Denied
------------------------------------------------------
Cristiane Lucchesi and Jeremy Hill of Bloomberg News report that a
New York bankruptcy court on Wednesday, Dec. 13, 2023, denied a
request by Sabl on Partners Ltd., one of the bondholders of
Americanas SA, to evaluate the Brazilian retailer's internal
investigation about accounting fraud at the company.
In a November 10, 2023, motion, Sablon Partners argued that it and
other creditors need to understand more about the fraud in order to
vote at a creditors' meeting scheduled for December 19, 2023.
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.
AMERICANAS SA: Daycoval, Votorantim Support Reorganization Plan
---------------------------------------------------------------
Bloomberg News reports that Americanas SA disclosed that it has
received support from creditors Votorantim and Daycoval for its
reorganization plan.
The Brazilian retailer said that it received terms of adhesion and
support to the Restructuring, Judicial Reorganization Plan and
Investment Support Agreement and Other Covenants (PSA) signed by
Banco Votorantim and Banco Daycoval.
As a result, the PSA now is supported by unsecured creditors
holding more than 38.5% of the company's debt, excluding
intercompany credits. Americanas also said that the holders of
85.42% of the local notes of the 17th issuance approved, at a
general meeting of local notes holders, the adhesion to the PSA.
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.
AMYRIS INC: Sale of Biossance Skincare to THG Approved
------------------------------------------------------
Jonathan Randle of Bloomberg Law reports that Bankrupt US
biotechnology company Amyris Inc. won court permission to sell its
Biossance skincare brand to online beauty retailer THG and to poll
creditors on a Chapter 11 plan that hands control of its remaining
business to lenders led by Foris Ventures LLC.
Judge Thomas M. Horan said Tuesday, Dec. 12, 2023, he'd approve the
Biossance sale, which will expand THG's consumer brands sold on its
portfolio of sites that include Dermstore and Cult Beauty.
About Amyris Inc.
Amyris (Nasdaq: AMRS) -- http://www.amyris.com/-- is a 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 world's 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. and its affiliates filed Chapter 11 petitions (Bankr.
D. Del. Lead Case No. 23-11131) on Aug. 9, 2023. In the petition
signed by its interim chief executive officer and chief financial
officer, Han Kieftenbeld, Amyris disclosed $679,679,000 in assets
and $1,327,747,000 in liabilities.
Judge Thomas M. Horan oversees the cases.
The Debtors tapped Pachulski Stang Ziehl & Jones LLP as their
bankruptcy counsel; Fenwick & West, LLP as corporate counsel;
Gordon Rees Scully Mansukhani, LLP as special counsel;
PricewaterhouseCoopers LLP as financial advisor; and Intrepid
Investment Bankers LLC as investment banker. Stretto, Inc., is the
Debtors' claims, noticing, solicitation agent and administrative
adviser.
AMYRIS INC: Unsecureds to Recover 5.8% to 7.5% of Claims in Plan
----------------------------------------------------------------
Amyris, Inc., and its Affiliated Debtors submitted a Disclosure
Statement with respect to Second Amended Plan of Reorganization
dated December 12, 2023.
Through these Chapter 11 Cases, the Debtors are implementing both
an operational and balance sheet restructuring, address liquidity
challenges, and preserve and maximize value.
The Plan is a plan of reorganization which incorporates the terms
of a global settlement among the Debtors, the DIP Secured Parties,
the Foris Prepetition Secured Lenders, the Creditors' Committee,
and the Ad Hoc Noteholder Group (the "Plan Settlement") that
provides for, among other things, a cash recovery to unsecured
creditors (along with the assignment of certain estate claims to a
Creditor Trust) in exchange for their support of a release of
certain estate claims and causes of action that were the subject of
the Independent Investigation, the Creditors' Committee
Investigation, and the Noteholder Group Investigation, as well as
additional consideration in connection with third-party releases.
The Plan provides for the satisfaction of Administrative Claims
(subject to a cap), the treatment of secured claims in accordance
with the Bankruptcy Code, and the continuation of the Debtors'
operations to the benefit of employees, vendors, contract
counterparties and customers. The Plan restructures the Debtors'
balance sheet and operations by facilitating the Debtors' exit from
and sale of their Consumer Brands Businesses, a potential sale of
the Other Assets, and a distribution to certain stakeholders
through the Plan. The Plan gives the DIP Secured Parties and
holders of the Foris Prepetition Secured Claims discretion to
satisfy such claims not paid from the Debtors' operations through
an allocation of certain net sale proceeds, a rollup into the Exit
Facility, and the new equity interests of Reorganized Amyris.
Upon the Effective Date, the Plan shall establish a Creditor Trust
for the benefit of Holders of Class 7 Convertible Notes Claims and
Class 8 General Unsecured Claims that will be funded with $2
million and provided with certain Cash assets pursuant to the terms
of the Plan and certain causes of action and preferences, the
proceeds of which will be distributed according to the Plan, after
payment of all direct out-of-pocket administrative, personnel,
legal costs and expenses incurred after the Effective Date in
administering the Creditor Trust, and making distributions from the
Creditor Trust as provided for under the Plan.
Under the Plan, Holders of Claims in Classes 7 and 8 are eligible
to receive estimated aggregate recoveries of $51.95 to $66.4
million. The sales of the Debtors' Consumer Brands Business were
anticipated to generate substantial revenue to fund Administrative
Claims and satisfy obligations under the DIP Facility.
Unfortunately, the Consumer Brands Business sales proceeds fell far
short of the amount needed to repay the DIP Facility and the
outstanding Administrative Claims -- estimated in the aggregate
amount of over $240 million which impacts the recoveries to
unsecured creditors. Under the Plan, unsecured creditors will
receive a baseline recovery within a reasonable time period plus
litigation claims for the Creditor Trust to pursue.
In addition, the Plan also contemplates certain Debtor/Estate
releases and third party releases of, among others, the DIP Lenders
and the DIP Agent, Foris Prepetition Secured Lenders, Consenting
Convertible Noteholders, the Consenting Contract Counterparties,
and parties related to all of the foregoing, as well as the
Debtors' current and former directors, managers, officers,
employees, professionals, and shareholders, to the extent that none
of the foregoing is an Excluded Party.
The Reorganized Debtors' emergence from chapter 11 is supported by
a $145 million Exit First Lien Facility, which certain of the DIP
Lenders/Foris Prepetition Secured Lenders (who will be identified
in the Plan Supplement) have agreed to backstop as necessary,
subject to the satisfaction of the conditions set forth in the Plan
Support Agreement and the Plan.
The Plan also includes a Sale Option, which provides the DIP
Lenders and the Foris Prepetition Secured Lenders the right, up to
Confirmation, to elect that the Debtors close a sale of the Other
Assets, i.e., all of the Estate's assets, other than the Consumer
Brands (and proceeds derived therefrom) and the Estate Claims
Settlement Consideration. The Debtors' Other Assets are being
marketed such that, if the Sale Option is exercised, a sale of
Other Assets may close with either the DIP Lenders and the Foris
Prepetition Lenders pursuant to their credit bid, or a third party
submitting a higher and better offer in accordance with bid
procedures governing the sale of the Other Assets. The proceeds of
sale(s) of the Other Assets will be distributed pursuant to the
Plan.
Class 8 consists of General Unsecured Claims. Holders of Allowed
General Unsecured Claims will receive from the Creditor Trust on
account of the Allowed General Unsecured Claims in full and
complete satisfaction of such Claims, on the Effective Date, (or as
soon as practicable thereafter), whether or not Class 8 votes to
accept or reject the Plan, a Pro Rata distribution of the Creditor
Trust Interests distributable to Class 8 based upon the Allowed
Claims in Class 7 and Class 8. On the Effective Date, Allowed
General Unsecured Claims shall be discharged without further notice
to, approval of, or action by any Person or Entity.
Class 8 is Impaired under the Plan. The allowed unsecured claims
total $200,000,000. This Class will receive a distribution of 5.8%
to 7.5% of their allowed claims.
The Debtors and the Reorganized Debtors, as applicable, shall fund
distributions under the Plan with (a) Net Proceeds as provided for
in the Plan, (b) the New Common Stock, (c) proceeds from the Exit
First Lien Facility, and (d) Cash on hand, subject to Plan
Effective Date Funding.
The Bankruptcy Court has established January 18, 2024, at 5:00
p.m., as the deadline to object to confirmation of the Plan.
The Bankruptcy Court has scheduled a hearing to consider
confirmation of the Plan for January 24, 2024, at 10:00 a.m., in
the Bankruptcy Court, located at 824 N. Market Street, 6th Floor,
Courtroom 6, Wilmington, DE 19801.
A full-text copy of the Disclosure Statement dated December 12,
2023 is available at https://urlcurt.com/u?l=j8bSqf from Stretto,
Inc., claims agent.
Counsel to the Debtors:
Richard M. Pachulski, Esq.
Debra I. Grassgreen, Esq.
James E. O'Neill, Esq.
Jason H. Rosell, Esq.
Steven W. Golden, Esq.
PACHULSKI STANG ZIEHL & JONES LLP
919 N. Market Street, 17th Floor
P.O. Box 8705
Wilmington, DE 19899-8705 (Courier 19801)
Tel: (302) 652-4100
Fax: (302) 652-4400
Email: rpachulski@pszjlaw.com
dgrassgreen@pszjlaw.com
joneill@pszjlaw.com
jrosell@pszjlaw.com
sgolden@pszjlaw.com
About Amyris Inc.
Amyris (Nasdaq: AMRS) -- http://www.amyris.com/-- is a 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 world's 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., and its affiliates filed Chapter 11 petitions (Bankr.
D. Del. Lead Case No. 23-11131) on Aug. 9, 2023. In the petition
signed by its interim chief executive officer and chief financial
officer, Han Kieftenbeld, Amyris disclosed $679,679,000 in assets
and $1,327,747,000 in liabilities.
Judge Thomas M. Horan oversees the cases.
The Debtors tapped Pachulski Stang Ziehl & Jones LLP as their
bankruptcy counsel; Fenwick & West, LLP as corporate counsel;
Gordon Rees Scully Mansukhani, LLP as special counsel;
PricewaterhouseCoopers LLP as financial advisor; and Intrepid
Investment Bankers LLC as investment banker. Stretto, Inc., is the
Debtors' claims, noticing, solicitation agent and administrative
adviser.
ANTIGUA INVESTMENTS: Hires Ahrens Realty Company as Realtor
-----------------------------------------------------------
Antigua Investments, LLC seeks approval from the U.S. Bankruptcy
Court for the Western District of Louisiana to employ Ahrens Realty
Company as realtor.
The firm will market and sell the Debtor's real property located at
1101 16th Street, Alexandria LA 71301.
The firm will be paid a commission of 4 percent of gross sales
proceeds.
As disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Kevin Viator
Ahrens Realty Company
1234 Texas Ave
Alexandria, LA 71303
Tel: (318) 321-1953
About Antigua Investments, LLC
Antigua Investments, LLC owns a land and building located at 16th
St., Alexandria, La.,valued at $3 million.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. W.D. La. Case No. 23-80536) on Sept. 22,
2023, with $3,071,950 in assets and $1,204,905 in liabilities. Jose
Alejandro Porras, member, signed the petition.
Judge Stephen D. Wheelis oversees the case.
Thomas R. Willson, Esq. represents the Debtor as legal counsel.
AP CORE II: Moody's Assigns 'B2' CFR, Outlook Stable
----------------------------------------------------
Moody's Investors Service assigned to AP Core Holdings II, LLC ("AP
Core", d/b/a "Yahoo") a B2 Corporate Family Rating, B2-PD
Probability of Default Rating, and B2 rating to the existing senior
secured credit facility (consisting of a $150 million revolving
credit facility and term loan B-1 and B-2). The rating outlook is
stable.
Moody's will also withdraw the existing ratings at College Parent,
L.P. (College Parent) including the B2 CFR and B2-PD PDR as well as
the Caa1 rating on the senior unsecured notes at College Holdings
II, LLC which was previously repaid. The stable outlooks will also
be withdrawn.
ESG was a factor in the rating and AP Core was assigned an ESG
Credit Impact Score of CIS-4. The CIS score was driven by
governance (G-4) as a result of significant related party
transactions with College Parent that has debt and operations
outside the credit group. The social risk score (S-3) reflects the
potential for breaches of consumers personal data that could impact
the company's reputation as well as human capital risk as a result
of the need to attract and retain high skilled technology workers.
Rationale
AP Core's B2 CFR reflects the company's: (i) scale as a leading
online content aggregator with a very large online user base; (ii)
diversified and personalized content offerings; and (iii) sizable
cash balance. The profile also considers AP Core's: (i) very weak
operating performance in recent quarters that has led to an
increase in leverage (3.6x Q3 2023 pro forma for removal of AOL
assets from the credit group as calculated by Moody's); (ii)
significant related party transactions with College Parent; (iii)
low EBITDA margins (Moody's adjusted) partly due to high traffic
acquisition costs and expenses associated with restructuring
initiatives; (iv) Moody's expectation for continuing pressure on
revenue due to slow economic growth, dependence on desktop traffic,
and weak advertising spend in the next few quarters; and (v)
competitive challenges, chiefly in search advertising and email.
There is also the absence of a long operating history as a
standalone entity and execution risk related to operational
improvements.
AP Core's liquidity position is good as a result of $555 million of
cash on the balance sheet as of Q3 2023 and an undrawn ($19 million
of L/Cs) $150 million revolving credit facility due September 2026.
Free cash flow (FCF) was modestly positive ($65 million LTM Q3
2023), but is expected to be pressured by high interest expense and
elevated capex ($207 million LTM Q3 2023) as the company continues
to make investments to drive future growth. AP Core has also
completed several modest sized acquisitions to improve its service
offering and is likely to consider additional purchases going
forward.
The term loans are covenant lite. The revolver is subject to a net
first lien leverage ratio of 2.3x when more than 35% of the
facility is drawn. Moody's expect AP Core will remain in compliance
with the covenant over the next twelve months.
The stable outlook reflects Moody's view that longer-term, AP Core
will benefit from cost savings and product innovation to improve
its service offerings. Changes to its ad tech strategy and
commercial agreements with Taboola and Google ad manager will lead
to better monetization, and lower costs over time. However, recent
revenue and EBITDA declines YTD Q3 2023 arising from competitive
pressures, reduced advertising spend, and additional investments in
the business to improve performance have led to an increase in
leverage and are likely to continue to weigh on operating
performance in the next few quarters and lead to higher leverage
levels.
AP Core's ratings could be upgraded if the company demonstrates
organic revenue growth of at least low-to-mid-single digits with a
stable daily active user (DAU) base and expanding EBITDA margins.
Leverage would also need to be sustained below 4x (Moody's
adjusted) and AP Core would have to maintain a good liquidity
profile with an adjusted FCF to debt ratio of at least 5%.
Confidence would also be needed that the company would pursue a
prudent financial policy and not complete any additional leveraging
transactions or transfers of assets outside the credit group.
AP Core's ratings could be downgraded if leverage was expected to
be sustained above 5.5x (Moody's adjusted) due to continuing
declines in EBITDA, additional debt issuance, or removal of
additional assets from the credit group. A weakened liquidity
position due to negative free cash flow or significant
distributions to the parent could also lead to negative rating
pressure.
With offices in Mountain View, CA and New York, NY, AP Core
Holdings II, LLC ("AP Core" d/b/a "Yahoo") is a subsidiary of
College Parent, L,P. (College Parent). AP Core is a leading global
online content aggregator and web services provider. The online
portal's web properties include: Search, Consumer (Yahoo Mail,
Yahoo Finance, Yahoo News, Yahoo Sports, Yahoo Entertainment and
Yahoo Lifestyle). In September 2021, the assets of Verizon Media
Group ("VMG"), which was a division of Verizon Communications Inc.,
were reorganized and purchased by Apollo Global Management, Inc. in
a buyout transaction totaling approximately $4.6 billion. College
Parent, L.P. was formed as a new holding company with no material
assets other than the equity interests of its subsidiaries that own
the reorganized VMG assets. Apollo and Verizon own approximately
90% and 10%, respectively of the College Parent's common equity. AP
Core's revenue totaled approximately $3.8 billion LTM ended Q3
2023.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
APEX TOOL: Moody's Cuts CFR to 'Caa2', Outlook Negative
-------------------------------------------------------
Moody's Investors Service downgraded Apex Tool Group, LLC.'s
corporate family rating to Caa2 from Caa1 and its probability of
default rating to Caa2-PD from Caa1-PD. Moody's also downgraded
Apex's senior secured 1st lien bank credit facilities to B3 from B2
and its senior secured 2nd lien term loan to Caa3 from Caa2. The
outlook is maintained at negative.
The downgrade of Apex's CFR reflects Moody's view that the
company's cash flow generation and credit metrics will remain weak
for the next 12-18 months.
"Apex's sales continued to decline in the third quarter of 2023,
affected by weakness in private label products with softer retail
consumer demand," said Motoki Yanase, VP - Senior Credit Officer at
Moody's.
"Despite some margin improvement in Q3 2023, Moody's expect Apex's
funds from operations to remain negative for 2024, which indicates
a limited ability to service debt repayment without relying on
working capital improvement," added Yanase.
RATINGS RATIONALE
Apex's Caa2 CFR considers Moody's expectation of limited cash flow
generation reflecting weakness in sales of private label brands to
retail consumers. Moody's expects Apex's funds from operations to
remain negative for 2023 and 2024. The positive impact from lower
working capital will support cash flow from operations and keep
free cash flow closer to break even through 2024. Limited cash flow
generation constrains the company's ability to pay down debt and
keep its leverage at a very high level. Moody's expects leverage
will remain over 10x debt/EBITDA for the next 12-18 months.
These credit weaknesses are counterbalanced with Apex's strengths,
including geographic diversification of its business, diverse
end-market industries and recognizable product brands.
Moody's projects Apex to have weak liquidity over the next 12
months from September 2023, constrained by its limited ability to
generate cash flow. The company will likely retain availability
under the revolver and the securitization facilities at the end of
12 months. However, Moody's expects projected cash flow will barely
cover cash outflow, including capital spending and debt
amortization. The rating agency's estimate also assumes meaningful
positive impact from working capital, which can fluctuate.
The next maturity is that of its US receivables securitization
program expiring in September 2025, which becomes current in 2024
and could lead to difficulty in refinancing. The cash revolver
matures in 2027, followed by the senior secured term loan in 2029.
The negative outlook reflects Moody's expectation that recovery in
Apex's credit profile will be limited over the next 12-18 months.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Moody's could upgrade the ratings if Apex meaningfully recovers its
profit and attains a more sustainable capital structure. Moody's
also expects the company to achieve at least adequate liquidity
before considering an upgrade.
Moody's could further downgrade the ratings if Apex fails to
improve its sales volume and cash flow generation. A deterioration
in its liquidity, increased likelihood of debt restructuring, and
an expectation of weaker recovery in the event of default could
also lead to a downgrade.
The principal methodology used in these ratings was Manufacturing
published in September 2021.
Apex Tool Group, LLC., headquartered in Charlotte, North Carolina,
is a global manufacturer of hand and power tools for industrial,
commercial, and retail customers. Bain Capital Partners, LLC,
through its affiliates, is the owner of Apex. The company recorded
about $1.4 billion of revenues for the twelve months that ended
September 2023.
ARCHDIOCESE OF NEW YORK: Court Tosses Sex Abuse Claims Suit
-----------------------------------------------------------
Craig Clough of Law360 reports that a New York judge on Friday,
Dec. 15, 2023, tossed a lawsuit brought by Chubb Insurance against
the Archdiocese of New York over a slew of sex abuse complaints the
church is facing, saying that under the "plain language" of the
policies the church held, it is "obvious" they cover the lawsuits.
About New York Archdiocese
The Archdiocese of New York is an ecclesiastical district
encompassing 296 parishes in the boroughs of Manhattan, the Bronx,
and Staten Island in New York City and the counties of Dutchess,
Orange, Putnam, Rockland, Sullivan, Ulster, and Westchester.
ARISTON LOGISTICS: Seeks Cash Collateral Access
-----------------------------------------------
Ariston Logistics, LLC asks the U.S. Bankruptcy Court for the
Western District of Tennessee, Western Division, for authority to,
among other things, use cash collateral and enter into factoring
agreement.
The Debtor requires the use of cash collateral and factoring to
meet payroll, pay for current expenses, supplies and satisfy the
numerous day-to-day expenses incurred in its operation of the
trucking jobs.
The Debtor had a factoring agreement with OTR Solutions, LLC, but
OTR decided not to continue business with a bankruptcy-insolvent
debtor. OTR will only collect outstanding prepetition account
receivables and terminate all security interest in collateral. GCS
has agreed to enter into an Accounts Receivable Purchase and
Security Agreement, extending a recourse factoring facility to the
Debtor. The Debtor's obligations under the Factoring Agreement are
approximately $75,000, and GCS holds a valid security interest in
various assets, including acquired accounts, accounts receivable,
contract rights, documents, reserves, rebates, and general
intangibles.
The Debtor asserts there may be secondary liens on cash collateral,
but any liens which predate the superpriority lien granted, the
Debtor asserts that such liens held by OTR by the pre-petition
account receivables will be paid in full and OTR should upon
collection of the prepetition accounts terminate their lien
(without penalties) by filing a UCC-3 termination. Furthermore OTR
will issue a release letter notifying obligors of the accounts
receivables that OTR is no longer the holder of any lien on the
post-petition accounts receivable. The Debtor requests that the
factoring lien of GCS prime all liens and receive super priority in
this case any other lien will be subordinate liens with due to the
willingness of GCS to factor accounts. Such Creditors are believed
to be OTR, SBA and BMO Harris Bank. The Debtor notified BMO of
filing but Debtor is of the belief that BMO has a security interest
in tractors and trailers purchased from BMO and filed a UCC-1 based
on financing of trailers only which are believed to be paid as
secured creditor on tractors and trailers and proceeds of such
vehicles and equipment.
GCS is willing, subject to Bankruptcy Court approval of the Order,
to purchase the Debtor's post-petition Accounts and extend a
factoring arrangement as more fully detailed in the Post-Petition
Factoring Agreement.
As security for the obligations under the Post-Petition Factoring
Agreement, the Debtor requests that GCS will be granted an Order
retroactive to the Petition Date, pursuant to section 364(c)(1) and
(d)(1) of the Bankruptcy Code, valid, first priority, binding,
enforceable, and perfected security interests in and liens on, and
administrative expense priority, with priority over all other
present and future security interests and liens of every kind, in:
(i) all of the Debtor's right, title and interest in and to all
post-petition Accounts, now owned or hereafter acquired, and (ii)
all proceeds of the foregoing.
A copy of the motion is available at https://urlcurt.com/u?l=Qrj7Yl
from PacerMonitor.com.
About Ariston Logistics
Ariston Logistics, LLC filed a petition under Chapter 11,
Subchapter V of the Bankruptcy Code (Bankr. W.D. Tenn. Case No.
23-25702) on Nov. 20, 2023, with $500,001 to $1 million in both
assets and liabilities.
Judge Denise E. Barnett oversees the case.
Toni Campbell Parker, Esq., at the Law Office of Toni Campbell
Parker represents the Debtor as bankruptcy counsel.
ARTISAN PACKAGING: Seeks Cash Collateral Access
-----------------------------------------------
Artisan Packaging, LLC asks the U.S. Bankruptcy Court for the
Western District of Virginia, Harrisonburg Division, for authority
to use cash collateral and provide adequate protection.
The Debtor requires the use of cash collateral to meet payroll
obligations to the remaining employees, satisfy its deposit and
payment obligations to utilities and other providers, to maintain
its insurance policies, and to preserve and protect its assets.
The Debtor has ceased its manufacturing operations and has reduced
its workforce to 13 employees, who are tasked with winding down the
Debtor's business and preparing its assets for sale.
A review of the Debtor's books and records and records of the
Virginia State Corporation Commission indicates that the following
entities have filed UCC-1 financing statements that have not been
terminated or expired and may assert a claim against the Debtor's
cash collateral:
a. Farmers & Merchants Bank
b. CloudFund LLC
c. Cedar Advance LLC
Farmers & Merchants Bank loaned operating funds to the Debtor
pursuant to the "Commercial Loan and Security Agreement Single
Advance Loan" dated August 21, 2021 in the original principal
amount of $750,000 and a "Commercial Loan and Security Agreement
Revolving Draw Loan" dated September 24, 2021 in in the original
principal amount of $3 million.
The F&M Obligations are secured by a blanket lien against all of
the Debtor's personal property. F&M perfected its interest in
Debtor's personal property by filing UCC-1 financing statements
with the Virginia State Corporation on September 28,2020 at Filing
Number: 20200928021513. Prior to, and as of the Petition Date, the
Debtor maintained all of its bank accounts at F&M, into which
deposited all of its incoming cash. As of the Petition Date, the
aggregate, outstanding balance owed by the Debtor to F&M was
approximately $3.6 million with F&M holding an aggregate of
$145,343 constituting cash collateral. The Debtor has reviewed the
loan and lien documents of F&M's lien. F&M holds the first and best
lien against the Debtor's personal property, including its cash
collateral.
In July 2023, CloudFund LLC and Cedar Advance LLC provided funds to
the Debtor through purported "merchant cash advances", whereby
funds are provided based on a volume or percentage of anticipated
accounts receivable rather than assigning (or factoring) actual
accounts receivable. CloudFund and Cedar did not file their UCC-1
financing statements until, respectively, November 1, and November
3,2023, and within 90 days prior to the Petition Date.
The Debtor proposes that the Lienholders receive a continuing
interest in and lien on all property of Debtor of the same type and
nature that exists as of the Petition Date with the same validity
(or invalidity) and priority as existed on the Petition Date. The
Replacement Liens will be perfected, enforceable, choate, and
effective without the necessity of the Lienholders taking any other
action, including the filing of any additional security documents
with respect thereto. The Debtor proposes that the Replacement
Liens will be granted only to secure an amount equal to the actual
amount of cash collateral used by the Debtor.
A copy of the motion is available at https://urlcurt.com/u?l=2bF7J4
from PacerMonitor.com.
About Artisan Packaging, LLC
Artisan Packaging, LLC is primarily engaged in manufacturing
plastics bottles. It offers up to 100% post-consumer resin (PCR)
and use energy-saving features to fuel its manufacturing.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Va. Case No. 23-50588) on December 11,
2023. In the petition signed by Richard Jay Veenis, member, the
Debtor disclosed up to $10 million in both assets and liabilities.
Stephan W. Milo, Esq., at Wharton, Aldhizer & Weaver, PLC,
represents the Debtor as legal counsel.
ASHFORD HOSPITALITY: Justin Coe Replaces Mark Nunneley as CAO
-------------------------------------------------------------
Ashford Hospitality Trust, Inc. disclosed in a Form 8-K Report
filed with the Securities and Exchange Commission that Mark
Nunneley, Chief Accounting Officer of the Company, announced to the
Board of the Company his intention to voluntarily step down from
his role as the Chief Accounting Officer and all other positions he
holds with the Company's advisor, Ashford Inc. ("Advisor"), and its
subsidiaries, affiliated entities, and entities that it advises,
including the Company to become Senior Managing Director as an
employee at Advisor on a full-time basis, in which role he will
provide strategic advice to the Company and be responsible for
special projects as requested by Advisor.
Nunneley's transition will be effective December 31, 2023.
Nunneley and Advisor have entered into a Letter Agreement
describing the terms of Nunneley's new role. Pursuant to the Letter
Agreement, which has no specified term, the existing Amended and
Restated Employment Agreement dated September 13, 2017, between
Nunneley and Ashford Hospitality Advisors, LLC (the "Employment
Agreement") generally will terminate on the Effective Date.
The Company is not a party to the Letter Agreement. However, during
the term of the Letter Agreement, Nunneley is required to provide
certain services to Advisor which may include services for the
benefit of the Company, and Nunneley generally will continue to be
eligible for incentive compensation in respect of 2023 in
accordance with the existing terms of the Employment Agreement as
though it were not being terminated. Additionally, pursuant to the
Letter Agreement:
* Nunneley will receive an annualized base salary of
$400,000.00, less legally required and authorized deductions and
withholdings;
* certain provisions of the Employment Agreement, such as its
confidentiality, indemnification, cooperation, non-competition and
non-solicitation provisions, shall survive and continue to apply in
accordance with their terms; and
* subject to execution of a release of claims, Advisor shall
make a special payment to Nunneley upon the termination of his
employment for any reason equal to the sum of (i) his annual base
salary for 2023, and (ii) the average of the annual incentive
bonuses he received (or will receive) in respect of 2021, 2022 and
2023, less legally required and authorized deductions and
withholdings, to be paid in twelve (12) substantially equal monthly
installments.
Nunneley will not be otherwise eligible to participate in any
bonus, equity, or other incentive compensation program after the
Effective Date, though his existing incentive awards that continue
past the Effective Date will continue to apply in accordance with
their existing terms.
On December 7, 2023, Justin Coe, the current Senior Vice President
of Accounting of Advisor, was appointed to fill the role of Chief
Accounting Officer at the Company, effective January 1, 2024.
Coe, age 40, has served as the Senior Vice President of Accounting
of Advisor since July 2015. As Senior Vice President of Accounting,
Coe was responsible for overseeing most of the accounting functions
for Advisor and each of its advised platforms, including the
Company and Braemar Hotels & Resorts Inc. Such functions include
tax, financial reporting, corporate controller, portfolio
accounting, internal audit, information systems, acquisitions and
special projects. Prior to joining Advisor, Coe was a Senior
Manager at Ernst & Young LLP and served since 2006 in various
Assurance and Advisory roles for public and private companies in
the airline, real estate, medical device and other industries
domestically and internationally. Coe holds Bachelor of Business
Administration and Master of Accountancy degrees from Texas State
University – San Marcos and is a licensed certified public
accountant (CPA) in the state of Texas.
There is no arrangement or understanding between Coe and any other
persons in connection with Coe's appointment as Chief Accounting
Officer, and Coe has no family relationship with any director or
executive officer of the Company. Coe has no direct or indirect
material interest in any transaction with the Company that is
reportable under Item 404(a) of Regulation S-K, nor have any such
transactions been proposed.
About Ashford Hospitality
Headquartered in Dallas, Texas, Ashford Hospitality Trust, Inc.
operates as a self-advised real estate investment trust focusing on
the lodging industry. As of September 30, 2023, the Trust had $3.7
billion in total assets against $3.9 billion in total liabilities.
Egan-Jones Ratings Company, on May 5, 2023, maintained its 'CCC+'
foreign currency and local currency senior unsecured ratings on
debt issued by Ashford Hospitality Trust, Inc.
AZAR BOUJARAN-GHOMI: Hires Wisdom Professional as Accountant
------------------------------------------------------------
Azar Boujaran-Ghomi DDS P.C. seek approval from the U.S. Bankruptcy
Court for the Eastern District of New York to employ Wisdom
Professional Services Inc. as accountant.
The firm will provide these services:
a. gathering and verifying all pertinent information required
to compile and prepare monthly operating reports; and
b. preparing monthly operating reports for the Debtor.
The firm will be paid at a rate of $250 per report and the expected
estimate monthly cost of services is $250.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
The firm received from the Debtor a retainer of $3,000.
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
Tel: (718) 554-6672
Email: mshtarkmancpa@gmail.com
About Azar Boujaran-Ghomi DDS P.C.
Azar Boujaran-Ghomi DDS P.C., filed a Chapter 11 bankruptcy
petition (Bankr. E.D.N.Y. Case No. 23-42065) on June 9, 2023, with
as much as $1 million in both assets and liabilities. Judge Jil
Mazer-Marino oversees the case.
The Debtor is represented by the Law Offices of Alla Kachan, PC.
BACKFORTY VENTURES: Court OKs Interim Cash Collateral Access
------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Oregon authorized
Backforty Ventures, LLC to use cash collateral on an interim basis,
in accordance with the budget.
The Debtor's use of cash collateral is limited to the expenditure
categories for 14 days as contained in the budget. The Budget will
however be reduced by $1,000 for the removal of any expenses
related to advertising and marketing. The Budget expense item for
insurance will be limited to $567 unless the Debtor needs the
remaining amount requested solely for insurance related to liquor
liability insurance for its performance of certain contractual
orders of its clients. In that event, the Debtor may use the full
amount of the Budget provisioned for insurance.
As adequate protection, SaviBank is granted the following:
a. A replacement lien on and security interest in the collateral in
the same priority and to the same extent as its lien existed on the
Petition Date which will not enhance or improve the secured
position of the Prepetition Lender.
b. The replacement lien and security interest granted will be
automatically deemed perfected upon entry of the Order without the
necessity of the Prepetition Lender taking possession of the
collateral or filing financing statements or other documents.
c. the Debtor will continue to maintain property and casualty
insurance in an amount not less than the amounts maintained as of
the Petition Date with the Prepetition Lender named as loss payee,
and shall provide the Prepetition Lender with proof of such
insurance upon request.
d. the Debtor will make the first monthly Adequate Protection
payment of $500 to Prepetition Lender; and
e. Nothing will be deemed a waiver or limitation on the rights of
the Prepetition Lender to seek further relief, including but not
limited to, the right to request further adequate protection in the
event of a substantial change in circumstances, the right to
request relief from the automatic stay, or dismissal of the case.
A final hearing on the matter is set for December 28, 2023 at 2
p.m.
A copy of the order is available at https://urlcurt.com/u?l=8btTLU
from PacerMonitor.com.
About Backforty Ventures, LLC
The Debtor is a beverage manufacturer and co-packer specializing in
beer, spirits, and and non-alcoholic sodas.
Backforty Ventures, LLC in Clackamas, OR, filed its voluntary
petition for Chapter 11 protection (Bankr. Or. Case No. 23-32 765)
on November 29, 2023, listing $430,424 in assets and $2,526,995 in
liabilities. Brice Barrett as member, signed the petition.
Judge David W. Hercher oversees the case.
MICHAEL D. O'BRIEN & ASSOCIATES, P.C. serve as the Debtor's legal
counsel.
BED BATH: Panel Dings Suit Over 401(k) Bankruptcy Losses
--------------------------------------------------------
Jacklyn Wille of Bloomberg Law reports that Bed Bath & Beyond
Inc.'s 401(k) committee asked a federal judge to dismiss litigation
over alleged plan losses tied to the retailer's recent bankruptcy,
saying the case's legal theory would fault the company for failing
to predict the future.
The proposed class action centers on a MassMutual guaranteed
interest account offered by the retailer's retirement plan, which
was aimed at preserving assets and providing a fixed rate of
return.
According to NAPA-net.org, Plaintiffs Paul Harvey and Lela LaPlante
(both of whom claim to have lost 10% of their GIA balance) on
behalf of the Bed Bath & Beyond, Inc. 401(k) Savings Plan have
filed suit pursuant to the Employee Retirement Income Security Act
against Defendants Bed Bath & Beyond, Inc. 401(k) Savings Plan
Committee, and Laura Crossen (BBB
s Chief Accounting Officer and later its Chief Financial Officer)
for having "failed to monitor the prudence of the Plan's investment
in the MassMutual Guaranteed Interest Account (GIA), certified
false and misleading statements concerning the risk of loss to Plan
participants invested in the GIA and failed to take action to avoid
the multi-million-dollar losses that followed."
According to the suit (Harvey v. Bed Bath & Beyond, Inc. 401(k)
Savings Plan Comm., D.N.J., No. 2:23-cv-20376, complaint 9/14/23)
filed in the U.S. District Court for the District of New Jersey,
"the GIA was the Plan's investment option intended to preserve Plan
participants' principal balances and provide a fixed rate of
return" was "governed by a group annuity contract between the Plan
and Massachusetts Mutual Life Insurance Company," and that
"participants were able to move their account balances between the
GIA and other Plan investment options at 'contract value,'" which
the suit says "preserved the principal balance of Plan assets
invested in the GIA, as well as all interest credited to the
participants’ accounts under the contract terms."
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.
BENTTREE CUSTOM: Unsecured Creditors to Split $80K over 3 Years
---------------------------------------------------------------
Benttree Custom Homes, LLC, filed with the U.S. Bankruptcy Court
for the District of Arizona a Plan of Reorganization dated December
11, 2023.
Michael Enders founded the Debtor in 1999. The Debtor serves as a
general contractor designing upscale custom residential homes.
The Debtor has generally been profitable with minimal financial
issues. The Ridenbaughs have refused to pay $73,640 owed to the
Debtor for its work. Without these funds, the Debtor could not pay
certain vendors and subcontractors for the work performed on the
project. In addition, the legal costs associated with defending
the Ridenbaughs vindictive litigation drained the company of its
surplus resources.
The current reorganization will allow the Debtor to return to using
its resources to pay its vendors and contractors on an ongoing
basis while using surplus profits to provide as much return as
possible to the unpaid debts arising from the Ridenbaugh dispute.
Class III consists of all Allowed Unsecured Claims against the
Debtor that are not entitled to classification in any other Class.
The Debtor shall pay holders of Allowed Class III Claims their Pro
Rata share of $80,000. The Debtor shall make the following annual
payments beginning one year from the Confirmation Date and
continuing on the same day each year thereafter until it has made
all payments: (i) 1 annual payment of $10,000 followed by; (ii) 1
annual payment of $35,000 followed by; (iii) 1 final annual payment
of $35,000
In addition, the Debtor will pay any proceeds received from avoided
and recovered transfers under Code Sections 542, 547, 548, 549, and
550 that remain after the payments and credits. No prepayment
penalty shall apply to Class III. Class III is impaired.
Class IV consists of all Allowed Equity Interests arising by virtue
of a member's ownership interest in the Debtor. Class IV shall
retain it Equity Interests in the Debtor to the same extent and
validity and upon the same terms as its prepetition Equity
Interest. Class IV is not impaired.
Upon the Effective Date, the Debtor will begin making payments to
Creditors under the Plan. The Debtor projects that it will have
accumulated sufficient funds over the course of the reorganization
to pay the Administrative Claims of the Case Trustee and AJG as
well as the Class II(a) Priority Unsecured Claim in full on the
Effective Date. To the extent that the Debtor does not have
sufficient funds to pay AJG in full on the Effective Date without
posing a risk to further performance under the Plan, AJG will work
with the Debtor to determine a repayment agreement outside of the
Plan terms.
The Debtor's post-confirmation performance will generate sufficient
revenue to repay Class I(a) within the original terms of the loan
and Class I(b) within approximately one year. The Debtor will use
its remaining projected disposable income to fund payments to
General Unsecured Creditors after satisfying these debts. The
Debtor has provided a prospective budget to demonstrate the
anticipated performance under the Plan.
The Debtor projects it will generate $141,576 in Disposable Income
within the 3 years following the Effective Date. The Plan, however,
provides for total payment to creditors of approximately
$152,317.39 during the same time. Regardless of whether all
impaired Classes accept the Plan, the Debtor has surpassed the
requirement to pay the value of its Disposable Income to
Creditors.
A full-text copy of the Plan of Reorganization dated December 11,
2023 is available at https://urlcurt.com/u?l=II6N75 from
PacerMonitor.com at no charge.
Attorneys for Debtor:
Thomas H. Allen, Esq.
David B. Nelson, Esq.
ALLEN, JONES & GILES, PLC
1850 N. Central Ave., Suite 1150
Phoenix, AZ 85004
Tel: (602) 256-6000
Fax: (602) 252-4712
Email: tallen@bkfirmaz.com
dnelson@bkfirmaz.com
About Benttree Custom Homes, LLC
Benttree Custom Homes, LLC, founded by Michael Enders in 1999,
serves as a general contractor designing upscale custom residential
homes.
The Debtor filed a Chapter 11 bankruptcy petition (Bankr. D. Ariz.
Case No. 23-06350) on September 12, 2023, disclosing under $1
million in both assets and liabilities.
The Debtor is represented by ALLEN, JONES & GILES, PLC.
BLACK KNIGHT: Moody's Ups Rating on $1BB Unsecured Notes From Ba3
-----------------------------------------------------------------
Moody's Investors Service upgraded to Baa3 from Ba3 Black Knight,
Inc.'s (together with its subsidiaries including Black Knight
InfoServ, LLC, the notes' issuer, "Black Knight") $1 billion senior
unsecured notes due 2028, reflecting its much lower debt level
since it was acquired by Intercontinental Exchange, Inc. ("ICE",
A3, stable) and implied support from ICE. The Ba2 Corporate Family
Rating, Ba2-PD Probability of Default Rating and SGL-1 Speculative
Grade Liquidity Rating ("SGL") were withdrawn. The outlook is
stable. These actions conclude the rating review initiated on May
6, 2022.
On September 5, ICE completed the purchase of Black Knight and
Black Knight's secured debt was repaid at closing. On September 14,
ICE completed the sale of certain Black Knight assets, including
Black Knight's Empower and Optimal Blue business lines. On December
11, ICE announced that its offer to exchange new ICE notes for
Black Knight's 2028 notes had expired and would not be extended or
exercised.
Governance considerations, notably the implied credit support from
ICE to Black Knight, was a key determinant of the rating actions.
RATINGS RATIONALE
The upgrade of Black Knight's senior unsecured notes rating to Baa3
from Ba3 rating on review for upgrade reflects Moody's expectations
that Black Knight will have moderate financial leverage with debt
to EBITDA around 2 times, strong interest coverage above 6 times
and free cash flow of at least $300 million over the next 12 to 18
months, as well as Moody's anticipation of support from ICE in a
meaningful number of stress scenarios due to the potential for
reputational harm to ICE from a default of the Black Knight notes.
All financial metrics cited reflect Moody's standard adjustments.
The Baa3 senior unsecured rating reflects Black Knight's modest
revenue scale, with around $1.1 billion of revenue expected by
Moody's in 2024, narrow operating scope focused on software and
services to the US mortgage industry and a somewhat concentrated,
although high quality, customer base consisting of many of the
largest mortgage servicers and loan originators in the US. Black
Knight's creditworthiness is bolstered by its attractive EBITA
margins, which Moody's expects will remain around 40%, its history
of highly recurring revenues and its leading market position as a
provider of mission critical integrated software, data and
analytics to the mortgage and real estate industries. Revenues are
primarily driven by the number of mortgage loans outstanding and,
as such, revenues are generally visible and stable, even when there
are changes in mortgage origination and refinancing activities.
Governance considerations, including Moody's anticipation of
implied credit support from ICE, were a key driver of the rating
upgrade. Black Knight is owned by A3-rated ICE and Moody's does not
anticipate any additional debt will be incurred by Black Knight,
because ICE could borrow at more favorable rates. Under ICE's
ownership, Moody's expects Black Knight will prioritize financial
leverage reduction over further acquisitions and shareholder
returns. Moody's considers Black Knight's financial strategies
balanced, predictable and aligned with those of ICE.
Black Knight's 2028 notes are rated three notches below ICE's over
$10 billion of A3-rated senior unsecured notes which benefit from
full guarantees by ICE and its subsidiaries.
Moody's considers Black Knight's liquidity profile to be very good.
Moody's expects free cash flow of around $300 million in 2024. As
of September 30, 2023, Black Knight held only about $4 million of
cash. The company does not have a committed external liquidity
source. The liquidity profile benefits from the implied support of
ICE and ICE's robust internal and external liquidity sources.
Black Knight's stable outlook reflects Moody's expectations for
moderate debt leverage, strong EBITA margins around 40% and robust
free cash flow.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Given Black Knight's small revenue scale, narrow operating scope
and status as a subsidiary of a larger company, the ratings are
unlikely to be upgraded. The senior unsecured notes rating could be
upgraded by multiple notches if it received direct support, such as
a guarantee, from ICE.
Black Knight's senior unsecured notes rating could be downgraded
if: 1) its financial policies become more aggressive; 2) its
revenue or profitability rates decline; 3) its debt to EBITDA is
sustained around 3 times or higher; or 4) Moody's anticipates
diminished credit support from ICE.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
Black Knight, Inc., headquartered in Jacksonville, FL and owned by
Intercontinental Exchange, Inc. ("ICE"), provides mission critical
integrated software, data and analytics to the mortgage and real
estate industries. Moody's expects 2024 revenue of about $1.1
billion.
BOY SCOUTS OF AMERICA: Prelim Bid to Dismiss Appeal Denied
----------------------------------------------------------
Evan Ochsner of Bloomberg Law reports that an appeal of the Boy
Scouts of America's bankruptcy plan will proceed, the Third Circuit
said, rejecting preliminary arguments from the organization and its
settling insurers that transactions underlying the plan can't be
undone.
"The Appellees' arguments leave us unpersuaded at this preliminary
stage that equitable or statutory mootness apply in the particular
circumstances of this case," Judge Kent A. Jordan of the US Court
of Appeals for the US Court of Appeals for the Third Circuit said
in a Thursday, December 14, 2023, ruling. "Therefore, the motion
to dismiss is hereby referred to the merits panel."
About Boy Scouts of America
The Boy Scouts of America -- https://www.scouting.org/ -- is a
federally chartered non-profit corporation under title 36 of the
United States Code. Founded in 1910 and chartered by an act of
Congress in 1916, the BSA's mission is to train youth in
responsible citizenship, character development, and self-reliance
through participation in a wide range of outdoor activities,
educational programs, and, at older age levels, career-oriented
programs in partnership with community organizations. Its national
headquarters is located in Irving, Texas.
The Boy Scouts of America and affiliate Delaware BSA, LLC, sought
Chapter 11 protection (Bankr. D. Del. Lead Case No. 20-10343) on
Feb. 18, 2020, to deal with sexual abuse claims.
Boy Scouts of America was estimated to have $1 billion to $10
billion in assets and at least $500 million in liabilities as of
the bankruptcy filing.
The Debtors have tapped Sidley Austin LLP as their bankruptcy
counsel, Morris, Nichols, Arsht & Tunnell LLP as Delaware counsel,
and Alvarez & Marsal North America, LLC, as financial advisor.
Omni Agent Solutions is the claims agent.
The U.S. Trustee for Region 3 appointed a tort claimants' committee
and an unsecured creditors' committee on March 5, 2020. The tort
claimants' committee is represented by Pachulski Stang Ziehl &
Jones, LLP, while the unsecured creditors' committee is represented
by Kramer Levin Naftalis & Frankel, LLP.
BURGESS POINT: S&P Alters Outlook to Negative, Affirms 'B-' ICR
---------------------------------------------------------------
S&P Global Ratings revised its outlook to negative from stable on
Buress Point Purchaser Corp. S&P also affirmed its 'B-' issuer
credit rating on the company. In addition, S&P affirmed the 'B-'
issue-level ratings on its senior secured debt.
S&P said, "The negative outlook indicates that we could lower our
rating on Burgess Point if the company's liquidity significantly
deteriorates such that we believed it could become constrained or
if we believed the capital structure could become unsustainable.
"The negative outlook reflects our expectation that credit metrics
and cash flows will remain weaker than previously forecast and the
risk that profitability and liquidity deteriorate more
substantially if there is operational underperformance. Burgess'
year-to-date performance has been softer than expected due to lower
sales volumes, Mexican peso headwinds, and ongoing acquisition and
integration costs. Furthermore, the company continues to be
burdened by substantial interest expense, with EBITDA interest
coverage remaining below 1x for the 12 months ended Sept. 30, 2023.
As such, we believe that free cash flow deficits will be greater
than we had originally forecast for 2023 and 2024. Despite these
concerns, the company still has ample liquidity given the $125
million availability on its asset-based lending (ABL) facility and
$100 million availability on its cash flow revolving credit
facility, providing the company with a liquidity runway in excess
of 12 months. However, given the weaker cash flow position, we
believe the company has less cushion for operational
underperformance. We believe potential risks include delayed orders
from major customers, significant working capital mismanagement,
greater-than-expected inflationary pressures, or a decline in fill
rates leading to lost business. Furthermore, if the company were to
make more debt-funded acquisitions, this could increase the
interest burden and raise leverage.
"While we do expect earnings to improve in 2024, we continue to
believe the company will generate a free cash flow deficit. We
forecast S&P Global Ratings-adjusted EBITDA margins will end 2023
at about 17%, resulting in a free cash flow deficit of $80-$90
million and adjusted leverage of 9.5x-10x. This is weaker than our
previous forecast for EBITDA margins of 18%-19% and a free cash
flow deficit of just $40 million-$50 million in 2023. Given the
slower improvement in margins, we now believe the company will
generate adjusted EBITDA margins of about 18.5%-19% in 2024 and
leverage will end the year at about 8.5x-9x. The margin improvement
in 2024 reflects some recovery through cost-cutting measures,
realization of acquired EBITDA, pricing actions already taken, and
new contract wins. We believe underlying demand dynamics remain
supportive due to the aging car parc. However, the company's high
interest burden will remain a drag on free cash flow in 2024, and
we forecast a free cash flow deficit of $35 million-$40 million,
which also incorporates our assumption of a slight working capital
investment to support new customer wins. We believe the company
will have to tap into its revolver in 2024 to fund this cash flow
shortfall, but it should have sufficient revolver availability to
do so without constraining its liquidity position.
"Financial policy is a major driver of the company's liquidity
position given the lack of cash flow generation. We forecast the
company to maintain its adequate liquidity position over the next
12 months due to its sources over uses remaining over 1.2x. This is
due to the $225 million availability on its revolving credit
facilities. We believe the company won't generate positive free
cash flow in 2024 given its substantial interest burden and will
have to fund this deficit on its revolvers, which also reduces the
ratings cushion for operational underperformance. While not in our
base case assumption, if the company were to use the revolver to
fund an acquisition, its liquidity position could deteriorate
quickly. If the company were to pull back on acquisitions, this
would reduce acquisition and integration expenses and improve its
earnings profile.
"The negative outlook reflects the risk that could lower the rating
on Burgess Point if the company's liquidity significantly
deteriorated such that we believed it could become constrained or
if we believed the capital structure could become unsustainable."
S&P could lower its rating if:
-- EBITDA margins fell significantly or working capital needs
increased meaningfully, causing free operating cash flow (FOCF)
deficits for multiple quarters such that liquidity deteriorated;
or
-- Leverage worsened to the extent that it would cause S&P's to
view the company's financial commitments as unsustainable. This
could occur because of problems integrating further acquisitions,
loss of a major customer because of quality issues or increased
competition, or a severe economic downturn.
S&P could revise its outlook back to stable if:
-- EBITDA margins improved such that the company were able to
generate at least break-even free cash flow on a sustained basis,
and S&P saw a path to further cash flow improvement; and
-- The company didn't get too aggressive with acquisitions and
continued maintaining its adequate liquidity position.
CARRIAGE SERVICES: Moody's Affirms B2 CFR, Outlook Remains Stable
-----------------------------------------------------------------
Moody's Investors Service affirmed the B2 corporate family rating
of Carriage Services, Inc., a provider of funeral and cemetery
services and merchandise in the US. Moody's also affirmed the
company's B2-PD probability of default rating and B3 senior
unsecured rating. The Speculative Grade Liquidity ("SGL") rating
remains unchanged at SGL-3. Moody's maintained the stable outlook.
The affirmation of the B2 CFR reflects Moody's expectation that,
over the next 12-18 months, Carriage will maintain a stable revenue
base and generate modest free cash flow that will primarily be used
to pay down its revolver balance.
RATINGS RATIONALE
The B2 CFR reflects Carriage's small scale with $384 million of
revenue and high financial leverage with debt to EBITDA of 5.9x as
of September 30, 2023. Moody's expects modest cash flow generation
with free cash flow to debt around 6% and solid interest coverage
with EBITA to interest expense of about 2.6x in 2024. The company's
public commitment to use free cash flow to repay outstanding
revolver drawings supports Moody's expectation that financial
leverage will decline to the mid-5x range in 2024. However,
Carriage has very limited cushion under its financial leverage
covenant, which steps down on March 31, 2024, and leaves little
room for operational missteps. The rating also reflects the credit
challenges from the fragmented and competitive deathcare industry,
with both larger and smaller competitors that could create pricing
pressures or limit revenue growth. Moody's expects profitability
will be under pressure in the short term driven by a normalization
of at-need demand towards pre-pandemic levels and inflationary
pressures, but Carriage is likely to be able to pass most price
increases onto customers. The ongoing secular trends toward the
increasing use of cremation services, which often generate lower
revenue than traditional burial and funeral services, could also
weigh on the financial performance or impede revenue and profit
growth over time.
The rating is supported by Carriage's established position as the
second largest player in the fairly stable deathcare industry, with
solid profitability and EBITDA margins in excess of 25% expected
over the next year. The value of select Carriage assets, including
its diverse set of owned and controlled funeral and cemetery
properties and a backlog of already-sold pre-need funeral and
cemetery contracts, is likely greater than the amount of select
liabilities, including its costs to perform under its contracted
pre-need service contracts and its debt. Carriage's credit profile
is supported by demographic trends that include an aging US
population and the expectation for higher at-need demand over the
medium term compared to pre-pandemic levels.
All financial metrics cited reflect Moody's standard adjustments.
The SGL-3 rating reflects Carriage's adequate liquidity profile
supported by Moody's expectation of at least $30 million free cash
flow in 2024. However, Moody's does not expect Carriage to maintain
large cash balances as evidenced by the less than $2 million cash
held as of September 30, 2023. Liquidity is supported by $60
million availability under its $250 million revolver expiring May
2026 (unrated). The credit facility allows for future increases in
the facility size in the form of increased revolving commitments or
new incremental term loans by an additional amount of up to $75
million. Financial covenants include a maximum total leverage ratio
(as defined in the credit agreement) that cannot exceed 5.75x and a
minimum fixed charge coverage ratio (as defined) of 1.2x. As of
September 30, 2023, the bank covenant total leverage ratio was
5.28x, leaving very limited covenant cushion. The financial
leverage covenant steps down to 5.50x at March 31, 2024, 5.25x at
September 30, 2024 and 5.00x at December 31, 2024 and thereafter.
The amended credit agreement also restricts Carriage from making
further acquisitions if total leverage exceeds 4.5x. Moody's
expects that Carriage will use free cash flow to repay outstanding
revolver debt that will support the company to maintain compliance
with its financial leverage covenant.
The B3 rating on the senior unsecured notes reflects the B2-PD
Probability of Default Rating and a Loss Given Default Assessment.
The B3 instrument rating also reflects the senior notes' position
in the capital structure, behind the unrated secured credit
facility that expires in May 2026.
The stable outlook reflects Moody's expectations for limited
organic revenue and EBITDA growth in 2024, debt-to-EBITDA financial
leverage to approach 5.5x and for Carriage to maintain at least an
adequate liquidity profile.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if Moody's anticipates sustained
organic revenue and profit rate growth. Expectations that Carriage
would sustain financial leverage below 5.5x, an improvement in the
liquidity profile and balanced financial policies, and free cash
flow to debt would approach 8% are also important considerations
for a ratings upgrade.
The ratings could be downgraded if Moody's expects revenue or
margins to sustainably decline, indicating a weakening competitive
position, financial policies become more aggressive, such that
Moody's expects financial leverage will be sustained above 6.5x, or
liquidity deteriorates further, including an increased likelihood
of a covenant breach.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
Carriage Services, Inc. (NYSE: CSV), headquartered in Houston,
Texas, is a public company which provides funeral and cemetery
services and merchandise in the US. As of September 30, 2023,
Carriage operates 171 funeral homes in 26 states and 32 cemeteries
in 11 states across the US. Carriage generated about $378 million
revenue for LTM period ended September 30, 2023.
CEC ENTERTAINMENT: Chuck E. Cheese Reportedly Exploring Sale
------------------------------------------------------------
Chuck E. Cheese, the U.S. restaurant chain that emerged from
bankruptcy three years ago, is exploring a sale amid acquisition
interest, Reuters reported, citing people familiar with the
matter.
The Irving, Texas-based company is working with investment bank
Goldman Sachs on an auction process that could attract private
equity firms as well as peers such as Dave & Busters Entertainment,
Reuters' sources said.
CEC Entertainment, the parent company of Chuck E. Cheese, has told
potential acquirers it expects to generate around $1.2 billion in
revenue and $195 million in earnings before interest, taxes,
depreciation and amortization (EBITDA) this year, the sources
added. Based on the valuation metrics of its peers, the company
could fetch well over $1 billion in a sale, according to the
sources.
The sources cautioned that no deal is certain and asked not to be
identified because the matter is confidential.
Private equity firm Apollo Global Management Inc (APO.N) acquired
Chuck E. Cheese in 2014 for $1.3 billion, including debt. The
company filed for bankruptcy in June 2020 after the onset of the
COVID-19 pandemic weighed on its business.
Chuck E. Cheese emerged from bankruptcy in December 2020 after
ownership was passed to its creditors, including investment firms
Monarch Alternative Capital and Redan Advisors, who agreed to
eliminate $705 million in debt from its balance sheet.
The company and its franchisees operate nearly 600 Chuck E. Cheese
locations and over 120 Peter Piper Pizza locations globally. It
also owns virtual kitchen concept Pasqually's Pizza & Wings.
About CEC Entertainment
CEC Entertainment is a family entertainment and dining company that
owns and operates Chuck E. Cheese and Peter Piper Pizza
restaurants. As of Dec. 31, 2019, CEC Entertainment and its
franchisees operate a system of 612 Chuck E. Cheese restaurants and
129 Peter Piper Pizza stores, with locations in 47 states and 16
foreign countries and territories. On the Web:
http://www.chuckecheese.com/
CEC Entertainment recorded a net loss of $28.92 million for the
year ended Dec. 29, 2019, compared to a net loss of $20.46 million
for the year ended Dec. 30, 2018. As of Dec. 29, 2019, CEC
Entertainment had $2.12 billion in total assets, $1.90 billion in
total liabilities, and $213.78 million in total stockholders'
equity.
On June 24, 2020, CEC Entertainment and its affiliates sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D.
Tex. Lead Case No. 20-33163).
Judge Marvin Isgur oversees the cases.
Debtors have tapped Weil, Gotshal & Manges, LLP as bankruptcy
counsel, FTI Consulting, Inc. as financial advisor, PJT Partners LP
as investment banker, Hilco Real Estate, LLC as real estate
advisor, and Prime Clerk, LLC, as claims, noticing and solicitation
agent.
The Office of the U.S. Trustee appointed a committee of unsecured
creditors on July 13, 2020. The committee has tapped Kelley Drye &
Warren, LLP and Womble Bond Dickinson (US), LLP as its legal
counsel, and Alvarez & Marsal North America, LLC, as its financial
advisor.
CHARLESTON CHILDREN'S: Seeks Cash Collateral Access
---------------------------------------------------
Charleston Children's Therapy Center, LLC asks the U.S. Bankruptcy
Court for the District of South Carolina for authority to use cash
collateral on which Cloudfund, LLC for Delta Bridge Funding, CFG
Merchant Solutions, LLC, The Avanza Group, LLC, United First, LLC,
Fundbox, Inc., United States Internal Revenue Service, and South
Carolina Department of Revenue assert, or may assert, security
interests and liens.
The Debtor requires the use of cash collateral to pay operational
expenses, such as employee wages, property leases, inventory,
utilities, taxes, and insurance.
Delta is a Merchant Cash Advance Lender with a claim estimated by
the Debtor in the amount of $37,804. CFG is a Merchant Cash Advance
Lender with a claim estimated by the Debtor in the amount of
$21,657. Avanza is a Merchant Cash Advance Lender with two claims
estimated by the Debtor in the combined amount of $22,339. United
First is a Merchant Cash Advance Lender with two claims estimated
by the Debtor in the combined amount of $161,152. Fundbox is a
Merchant Cash Advance Lender with a claim estimated by the Debtor
in the amount of $1,640.
The Debtor estimates that its liability to the IRS for past due
payroll taxes is approximately $450,000.
The Debtor estimates that its liability to the SCDOR for past due
payroll taxes is approximately $60,000.
Many of the Merchant Cash Advance Lenders and the IRS have issued
levies upon the Debtor's account debtors in order to accelerate
payment of their asserted liens. Such levies have disrupted the
Debtor's cash flow and impair the Debtor's ability to fund regular
operating expenses.
As adequate protection for the use of cash collateral, the Debtor
agrees to provide Delta, CFG, Avanza, United First, Fundbox, IRS,
and SCDOR with replacement liens on postpetition cash collateral to
the same extent and in the same priority as their pre-petition
liens, for any post-petition diminution in the pre-petition cash
collateral as well as replacement liens on all other property that
may be acquired post-petition by the Debtor with such replacement
liens having the same extent and priority as their prepetition
liens on such property.
A copy of the motion is available at https://urlcurt.com/u?l=xYOsm7
from PacerMonitor.com.
About Charleston Children's Therapy Center, LLC
Charleston Children's Therapy Center, LLC is a multidisciplinary
pediatric practice headquartered in the Charleston area. Its team
consists of trained therapists who are dedicated to ongoing
education and the acquisition of advanced pediatric skills. The
Debtor provides services both inside the clinic and in the
patient's home.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. S.C. Case No. 23-03821) on December 11,
2023. In the petition signed by the Debtor's Manager, Tempo Health
Group, LLC, by James Butcher, its president, the Debtor disclosed
up to $50,000 in assets and up to $10 million in liabilities.
Judge Elisabetta Gm Gasparini oversees the case.
W. Harrison Penn, Esq., at PENN LAW FIRM LLC, represents the Debtor
as legal counsel.
CHELAN COUNTY PHD 2: Moody's Affirms 'Ba1' Rating on GOLT Bonds
---------------------------------------------------------------
Moody's Investors Service has affirmed Chelan County Public
Hospital District, No. 2, WA's general obligation unlimited tax
(GOULT) bonds at Baa3, affecting approximately $18.5 million in
outstanding debt. At the same time Moody's has affirmed the Ba1
rating on the hospital district's general obligation limited tax
(GOLT) bonds, affecting approximately $5.4 million in outstanding
debt. The outlook has been revised to stable from negative.
RATINGS RATIONALE
The affirmation of the Baa3 GOULT rating primarily reflects the
district's improved revenue performance and liquidity position
relative to the worst of the pandemic and the expectation that
stable to growing patient volumes will support a gradually improved
financial position through fiscal 2024. The rating also
incorporates the district's effective construction and long-term
financing of its new hospital facility and the general risks
associated with small, rural hospitals. The rating also
incorporates the district's large tax base and the dedicated and
unlimited property tax levy for debt service repayment. The rating
also reflects the support of an unlimited tax levy collected solely
for repayment of the GOULT bonds.
The affirmation of the Ba1 on the district's outstanding GOLT bonds
reflects the general credit characteristics of the district as well
as the full faith and credit and all-available revenue pledge of
the hospital. The one notch distinction between the GOULT and GOLT
bonds reflects the additional risk inherent to obligations repaid
from all available operating revenues (GOLTs) rather than a
dedicated source of repayment (GOULTs) and considers the narrow
coverage the district's operating levies provide on outstanding
full faith and credit and parity obligations.
RATING OUTLOOK
The stable outlook primarily reflects Moody's belief that gradual
improvement to patient volumes will support the district's revenue
growth and a stabilized liquidity position over the outlook
period.
FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS
- Material growth and stability of liquidity position
- Continued growth of patient volumes supporting improved financial
performance
FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS
- Erosion of liquidity position
- Material growth to leverage
- Failure to meet patient revenue growth expectations, resulting in
erosion of financial position
LEGAL SECURITY
The GOULT bonds are secured by a separate and dedicated property
tax pledge, not subject to limitation as to rate or amount.
The GOLT bonds are secured by the full faith, credit and resources
of the district, subject to the constitutional and statutory
limitations provided by law without a vote of the electors of the
district.
PROFILE
Chelan County Public Hospital District 2, Washington operates as
the Lake Chelan Health in the city of Chelan, Washington, which is
a scenic resort community of approximately 4,000 residents at the
edge of Lake Chelan in North Central Washington. The hospital
district encompasses the City of Chelan and unincorporated portions
of Chelan County, and serves an estimated population of 12,000.
METHODOLOGY
The principal methodology used in these ratings was US Special
Purpose District General Obligation Debt Methodology published in
November 2022.
CHESTER T. MACK: Hires Taps E.P. Bud Kirk as Bankruptcy Attorney
----------------------------------------------------------------
Chester T. Mack, LLC seeks approval from the U.S. Bankruptcy Court
for the Western District of Texas to employ E.P. Bud Kirk, Esq., a
practicing attorney in El Paso, Texas.
The Debtor requires a bankruptcy attorney to:
(a) give advice regarding the powers and duties of the Debtor
in the continued operation of its business and management of its
properties;
(b) review various contracts entered by the Debtor;
(c) represent the Debtor in the collection of its accounts
receivable, if needed;
(d) prepare all necessary legal papers;
(e) assist the Debtor in the formulation and negotiation of a
Chapter 11 plan with its creditors;
(f) review all presently pending litigation in which the
Debtor is a participant;
(g) review the Debtor's pre-bankruptcy transactions;
(h) examine all tax claims filed against the Debtor; and
(i) provide other necessary legal services.
Mr. Kirk will be paid at these rates:
E.P. Bud Kirk, Partner $300 per hour
James K. Jopling, Partner $300 per hour
Maura Casas, Paralegal $125 per hour
In addition, the attorney will receive reimbursement for
out-of-pocket expenses incurred.
Mr. Kirk received a retainer of $11,738 from the Debtor.
Mr. Kirk disclosed in a court filing that he is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
The firm can be reached at:
E.P. Bud Kirk, Esq.
600 Sunland Park Drive
Bldg. Four, Suite 400
El Paso, TX 79912
Tel: (915) 584-3773
Fax: (915) 581-3452
Email: budkirk@aol.com
About Chester T. Mack, LLC
Chester T. Mack, LLC owns a commercial building located at 2200
George Dieter Dr., El Paso, TX valued at $2.4 million.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Tex. Case No. 23-31275) on December 1,
2023. In the petition signed by Uzodinma Raphael Dim, managing
member, the Debtor disclosed $2,403,481 in assets and $2,295,130 in
liabilities.
James Jopling, Esq. represents the Debtor as legal counsel.
CHIEF FIRE: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Three affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Chief Fire Prevention Holdings, LLC 23-43849
2102 E. State Hwy 114
Suite 300
Southlake, TX 76092
Chief Fire Intermediate, Inc. 23-43850
2102 E. State Hwy 114
Suite 300
Southlake, TX 76092
Chief Fire Prevention & Mechanical Corp. 23-43851
100 Grasslands Road
Suite 103
Elmsford, NY 10523
Business Description: Chief Fire is a fire prevention company
that offers restaurant owners a suite of
services to accommodate every need
associated with fire prevention. It offers
fire suppression services, range hood
cleaning services, and fire extinguisher
maintenance.
Chapter 11 Petition Date: December 17, 2023
Court: United States Bankruptcy Court
Northern District of Texas
Judge: Hon. Edward L. Morris (23-43850)
Hon. Mark X. Mullin (23-43849 and 23-43851)
Debtors' Counsel: Bryan C. Assink, Esq.
BONDS ELLIS EPPICH SHAFER JONES LLP
420 Throckmorton Street, Suite 1000
Fort Worth, TX 76102
Tel: 817-405-6900
Fax: 817-405-6902
Email: bryan.assink@bondsellis.com
Chief Fire Prevention's
Estimated Assets: $0 to $50,000
Chief Fire Prevention's
Estimated Liabilities: $1 million to $10 million
Chief Fire Intermediate's
Estimated Assets: $0 to $50,000
Chief Fire Intermediate's
Estimated Liabilities: $1 million to $10 million
Chief Fire Prevention & Mechanical's
Estimated Assets: $100,000 to $500,000
Chief Fire Prevention & Mechanical's
Estimated Liabilities: $1 million to $10 million
The petitions were signed by Dan Meader as manager and Chris Boyce
as chief executive officer.
Full-text copies of the petitions containing, among other items,
lists of the Debtors' 20 largest unsecured creditors are available
for free at PacerMonitor.com at:
https://www.pacermonitor.com/view/NFHI3II/Chief_Fire_Prevention_Holdings__txnbke-23-43849__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/NDIYDNI/Chief_Fire_Intermediate_Inc__txnbke-23-43850__0001.0.pdf?mcid=tGE4TAMA
https://www.pacermonitor.com/view/NMQPL3Y/Chief_Fire_Prevention__Mechanical__txnbke-23-43851__0001.0.pdf?mcid=tGE4TAMA
COUNTY INVESTMENT: Hires Pendergraft & Simon as Counsel
-------------------------------------------------------
County Investment L.P., and its affiliates seek approval from the
U.S. Bankruptcy Court for the Southern District of Texas to employ
Pendergraft & Simon, LLP as its bankruptcy counsel.
The firm will provide these services:
a. analyzing the financial situation, and rendering advice and
assistance to the Debtors in determining whether to file petitions
under Title 11, United States Code;
b. advising Debtors with respect to their powers and duties as
a Debtors-in-Possession;
c. conducting appropriate examinations of witnesses, claimants
and other persons;
d. preparing and filing of all appropriate petitions,
schedules of assets and liabilities, statements of affairs,
answers, motions and other legal papers; and to consult with and
advise the Debtors-in-Possession in connection with the operation
of or the termination of the operation of the business of the
Debtors;
e. representing the Debtors at the meeting of creditors and
such other services as may be required during the course of the
bankruptcy proceedings;
f. representing Debtors-in-Possession in all proceedings before
the Court and in any other judicial or administrative proceeding
where the rights of the Debtors may be litigated or otherwise
affected;
g. preparing, filing, negotiation and prosecution of a
Disclosure Statement and Plan of Reorganization;
h. advising and consulting with the Debtors-in-Possession
concerning questions arising in the conduct of the administration
of the estate and concerning Debtors' rights and remedies with
regard to the Estates' assets and the claims of se- cured, priority
and unsecured creditors;
i. investigating pre-petition transactions and prosecution, if
appropriate, preference and other avoidance actions arising under
the Debtors-in-Possessions' avoidance powers or any other causes of
action held by the Estates;
j. defending, if necessary, any motions to lift the automatic
stay, contested matters and/or adversary proceedings, and, analyze
and prosecute any objections to claims;
k. appearing on behalf of the Debtors-in-Possession before
this Court;
l. advising and assisting the Debtors-in-Possession with real
estate and business organizations issues related to this case; and
m. assisting to Debtors in any matters relating to or arising
out of the captioned case.
The firm will be paid at these rates:
Leonard Simon $500 per hour
William P. Haddock $500 per hour
Senior paralegal/Senior law clerk $200 per hour
Junior paralegal/Junior law clerk $100 per hour
In addition, the firm will receive reimbursement for out-of-pocket
expenses incurred.
Leonard Simon, Esq. a partner at Pendergraft & Simon, LLP,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Leonard H. Simon, Esq.
Pendergraft & Simon, LLP
2777 Allen Parkway, Suite 800,
Houston, TX 77019
Tel: (713) 528-8555
Fax: (713) 868-1267
Email: lsimon@pendergraftsimon.com
About County Investment L.P.
Houston-based County Investment L.P. is primarily engaged in
renting and leasing real estate properties.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. S.D. Texas Case No. 23-34374) on Nov. 6,
2023, with $1 million to $10 million in both assets and
liabilities. Danesh Pajooh, managing member, signed the petition.
Judge Eduardo V. Rodriguez oversees the case.
Leonard Simon, Esq., at Pendergraft & Simon, LLP represents the
Debtor as legal counsel.
CUETO CONSULTING: Hires Eric A. Liepins PC as Counsel
-----------------------------------------------------
Cueto Consulting & Construction, LLC seeks approval from the U.S.
Bankruptcy Court for the Northern District of Texas to employ Eric
A. Liepins, PC as its bankruptcy counsel.
The Debtor requires legal assistance for the purpose of orderly
liquidating the assets, reorganizing the claims of the estate, and
determining the validity of claims asserted in the estate.
The hourly rates of the firm's counsel and staff are as follows:
Eric A. Liepins $275
Paralegals and Legal Assistants $30-$50
In addition, the firm will seek reimbursement for expenses
incurred.
The firm has been paid a retainer of $5,000 plus filing fee.
Eric A. Liepins, Esq., the sole shareholder of the firm, 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:
Eric A. Liepins, Esq.
Eric A. Liepins, PC
12770 Coit Road, Suite 850
Dallas, TX 75251
Telephone: (972) 991-5591
Facsimile: (972) 991-5788
Email: eric@ealpc.com
About Cueto Consulting & Construction, LLC
Cueto Consulting & Construction, LLC in Fort Worth, TX, filed its
voluntary petition for Chapter 11 protection (Bankr. N.D. Tex. Case
No. 23-43707) on December 4, 2023, listing $100,000 to $500,000 in
assets and $1 million to $10 million in liabilities. Andrew Cueto
as president, signed the petition.
ERIC A. LIEPINS, P.C. serve as the Debtor's legal counsel.
CYTOSORBENTS CORP: Closes $10.3 Million Registered Direct Offering
------------------------------------------------------------------
CytoSorbents Corporation announced the closing of its registered
direct offering for the sale by the Company directly to investors
of an aggregate of 7,733,090 shares of registered common stock and
warrants to purchase up to 2,706,561 shares of common stock.
Dr. Phillip Chan, chief executive officer of CytoSorbents stated,
"We are pleased to announce the closing of this equity financing,
with participation and support from existing institutional
investors, new long-term fundamental investors, as well as all
C-level executives and Board Directors, and other key leaders in
the Company. The fundraise represents a key piece of our overall
financing strategy which combines equity with non-dilutive debt.
Through the anticipated addition of further debt capital and
ongoing expense reductions, we expect to be well-capitalized to
fund the operating needs of the Company through at least the next
18 months. Meanwhile, we are very excited by the expected
completion of initial data analysis from our pivotal U.S. and
Canadian STAR-T randomized, controlled trial before the end of this
month."
Net proceeds from the offering, after transaction fees and
expenses, are expected to be approximately $9.83 million, excluding
any proceeds that may be received upon the exercise of the
warrants. Each warrant is immediately cash exercisable at an
exercise price per share of $2.00 and will expire on the fifth
anniversary of the original issue date. Each share of common stock
and accompanying warrant to purchase up to 0.35 shares of common
stock, were sold together for a combined purchase price of $1.33,
for an aggregate gross purchase price of $10,285,009.70. The
Company's executive officers, directors, and certain non-executive
officer employees of the Company also participated in the financing
with a combined investment of $435,000.
The Company intends to use the net proceeds from this offering for
general corporate purposes, including to fund clinical and
regulatory efforts to file for DrugSorb-ATR marketing approval in
the United States and Canada, to fund clinical studies in the
United States and Canada, to support growth initiatives for
CytoSorb, to invest in clinical studies and the generation of new
clinical data, and to fund ongoing R&D initiatives and further
develop products.
About CytoSorbents
Based in Monmouth Junction, N.J., CytoSorbents Corporation is
engaged in critical care immunotherapy, specializing in blood
purification. Its flagship product, CytoSorb, is approved in the
European Union with distribution in more than 75 countries around
the world as an extracorporeal cytokine adsorber designed to reduce
the "cytokine storm" or "cytokine release syndrome" seen in common
critical illnesses that may result in massive inflammation, organ
failure and patient death.
CytoSorbents reported a net loss of $32.81 million for the year
ended Dec. 31, 2022, a net loss of $24.56 million for the year
ended Dec. 31, 2021, a net loss of $7.84 million for the year ended
Dec. 31, 2020, a net loss of $19.26 million for the year ended Dec.
31, 2019, and a net loss of $17.21 million for the year ended Dec.
31, 2018. As of Sept. 30, 2023, the Company had $47.57 million in
total assets, $29.06 million in total liabilities, and $18.51
million in total stockholders' equity.
DA VINCI DENTAL: Unsecured Creditors to Split $44K over 3 Years
---------------------------------------------------------------
Da Vinci Dental, Ltd., filed with the U.S. Bankruptcy Court for the
Northern District of Illinois a Small Business Plan of
Reorganization dated December 11, 2023.
The Debtor is a Dental practice operated by Dr. James Ojjeh in
Naperville Illinois. Davinci has been providing dental care to its
patients since 2015.
Prior to the bankruptcy filing, due to the decrease in revenue
during the Covid 19 pandemic and injuries to Dr. Ojjeh, the Debtor
fell behind and was unable to meet its obligations. Equipment
companies and receivable loans brought suits against the Debtor in
various courts. Unable to meet this obligation, the Debtor filed
for protection under Subchapter V of Chapter 11 to reorganize its
debts.
This Plan of Reorganization proposes to pay creditors of the Debtor
from future revenues generated by the Debtor's business.
The Plan provides that all administrative creditors will be paid in
full on the Effective Date of the Plan (which is 30 days after the
Order confirming the Plan is a final Order) unless otherwise
agreed. Tax claims will receive 100% of their allowed claims over
the period of the Plan term (5 years).
Class 1 is The United States Small Business Administration (the
"SBA") will be paid the secured portion of their claim paid in full
of 3.75% interest over Five Years with interest. Class 2 is U.S.
Bank, N.A. d/b/a U.S. Bank Equipment Finance has a Secured Claim
based on the dental equipment will have the secured portion paid in
full of 9% interest over Five Years.
Class 3 consists of the unsecured claims of SBA in the amount of
$69,818.98. The Class will represent the unsecured position of the
SBA. This claimant will receive a pro rata share of the Unsecured
Creditor Payment in Class 8.
Class 4 consists of the Unsecured claims of U.S. Banks in the
amount of $64,465.09. This claimant will receive a pro rata share
of the Unsecured Creditor Payment in Class 8.
Class 5 consists of the Unsecured Claims of the Business Backer.
Business Backer filed a Secured Claim for $31,222.02 allegedly
relating to certain prepetition receivable loans to the Debtor. It
is unclear from their claim about why they assert the claim as
secured as the all the Debtor's assets were fully secured by more
senior claimants (SBA and U.S. Bank) The Debtor disputes the claim
in that (1) it is not secured as all of its collateral is subject
to senior secured claims; and (2) there is no assets of the Debtor
to support this claim. This claimant will receive a pro rata share
of the Unsecured Creditor Payment in Class 8.
Class 6 consists of the Unsecured Claims of Forward Financing.
Forward Financing filed an unsecured claim for $ 22,078 allegedly
relating to certain prepetition receivable loans to the Debtor.
This claim will be paid as an unsecured claim in Class 8. The Court
set a claims bar Date of November 21, 2023. Forward Financing filed
its claim on November 21, 2023; therefore the claim would be
disallowed as untimely. The Debtor scheduled this claim in the
amount of $20,499. This claimant will receive a pro rata share of
the Unsecured Creditor Payment in Class 8.
Class 7 consists of the Unsecured Claims of Five Star Bank. Five
Star Bank filed a Secured Claim for $ 193,776.36, allegedly
relating to certain prepetition loans to the Debtor. It is unclear
from their claim about why they assert the claim as secured as the
all the Debtor's assets were fully secured by more senior claimants
(SBA and U.S. Bank.) The Debtor disputes the claim in that (1) it
is not secured as all of its collateral is subject to senior
secured claims; and (2) there is no assets of the Debtor to support
this claim. This claimant will receive a pro rata share of the
Unsecured Creditor Payment in Class 8.
Class 8 consists of General Unsecured Claims. Holders of allowed
unsecured claims shall receive a pro rata share of the Unsecured
Creditor Payments on an annual basis for a period of 3 years
beginning on the 1st anniversary of the Effective Date of the Plan
and continuing yearly for another 2 years. The Unsecured Creditor
Payments shall equal $43,702.84 in the aggregate and each yearly
payment shall be $10,559.79, 15342.32 and a final payment of
$17,800.73 for 3 payments.
No distribution will be made for unsecured claims which were either
(i) scheduled as disputed; or (ii) no timely proof of claim was
filed. It is difficult to assess the anticipated recovery for
unsecured creditors due to the large and unsubstantiated claim
filed by Five Star Bank and Business Backer. If Five Star Bank and
Business Backer claim is allowed, the estimated recovery for
unsecured creditors will be 0%. If Five Star's claim is not
allowed, the estimated recovery is likely between 0-10%.
Equity security holders shall retain their interest in the Debtor.
In addition, the principal of the Debtor will be entitled to a
salary for his work on behalf of the Debtor.
A full-text copy of the Plan of Reorganization dated December 11,
2023 is available at https://urlcurt.com/u?l=Tzlyqe from
PacerMonitor.com at no charge.
Counsel for the Debtor:
O. Allan Fridman, Esq.
LAW OFFICE OF O. ALLAN FRIDMAN
555 Skokie Blvd, Suite 500
Northbrook, IL 60062
Telephone: (847) 412-0788
Facsimile: (847) 412-0898
Email: allanfridman@gmail.com
About Da Vinci Dental
Da Vinci Dental, Ltd., is a Dental practice operated by Dr. James
Ojjeh in Naperville Illinois.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ill. Case No. 23-12085) on Sept. 12,
2023. In the petition signed by James Ojjeh, president, the Debtor
disclosed up to $100,000 in assets and up to $500,000 in
liabilities. Judge Donald R Cassling oversees the case. O. Allan
Fridman, Esq., at Law Office of Allan Fridman, is the Debtor's
legal counsel.
DIAMOND SPORTS: Sinclair Can't Force Management Fees
----------------------------------------------------
Jonathan Randles of Bloomberg Law reports that a bankruptcy judge
ruled late Friday, December 15, 2023, that Sinclair Inc. can't
force its bankrupt sports broadcasting subsidiary, Diamond Sports
Group, to immediately pay millions of dollars in management fees.
Judge Christopher Lopez said during a hearing that Diamond can put
off paying Sinclair until it's prepared to either restructure its
business or shut down in Chapter 11, a decision Diamond might not
make for several more months.
Fights over those payments have pitted Sinclair against Diamond,
which is being run in Chapter 11 by independent advisers.
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 counsel;
FTI Consulting, Inc., as financial advisor; and Houlihan Lokey
Capital, Inc., as investment banker.
DIGITAL ALLY: Amends Lock-Up Agreement With Clover Leaf
-------------------------------------------------------
Digital Ally, Inc. and Clover Leaf Capital Corp. ("CLOE"), a
publicly traded special purpose acquisition company (SPAC), and
Kustom Entertainment, Inc., a wholly-owned subsidiary of Digital
Ally, announced that CLOE and Kustom Entertainment have entered
into an amendment to the Lock-Up Agreement in connection with the
proposed business combination between CLOE and Kustom Entertainment
announced June 2, 2023.
The original Lock-Up Agreement was made and entered into as of June
1, 2023 in connection with the proposed Business Combination, in
which Digital Ally, would immediately distribute 15% of all
securities received as merger consideration in the merger at the
closing. Under the Amended Lock-Up Agreement entered into Dec. 11,
2023, Digital Ally will now immediately distribute 20% of all
securities received as merger consideration in the Business
Combination at the closing, with 80% being subject to the 6-month
lock-up period.
"We are excited to announce this recent Amendment that will provide
our shareholders with an even greater immediate distribution at the
closing of this merger. As we continue to work to create a new
publicly traded company in the live entertainment industry, we
continue to focus on our shareholders and providing them with the
best value," said Stan Ross, current CEO of Digital Ally and future
CEO of Kustom Entertainment. "Executing the Amended Lock-Up
Agreement increases the immediate distribution to shareholders from
15% to 20% of all securities received as merger consideration at
closing, which provides a greater immediate value for our
shareholders. We continue to be excited about the completion of
this transaction, and moved one step closer with the filing of our
S-4/A last week with the SEC. We will continue to keep our
shareholders informed throughout this process, and continue to
strive towards maximizing their shareholder value."
This Amended Lock-Up Agreement follows the recent filing of the
S-4/A Registration Statement Amendment with the U.S. Securities and
Exchange Commission, indicating continued progress toward the
previously announced merger with CLOE.
The combined company will be known as Kustom Entertainment and will
operate under the same management team as Kustom Entertainment,
which is currently led by Stanton E. Ross, the current CEO of
Digital Ally. The transaction contemplates an equity value of $125
million for Kustom Entertainment. The combined company is expected
to have an implied initial pro forma equity value of approximately
$222.2 million, with the proposed business combination expected to
provide approximately $14 million in gross proceeds from the cash
held in trust by CLOE, assuming no redemptions. Additionally,
Digital Ally will now distribute to its shareholders 20% of the
shares obtained in Kustom Entertainment immediately following the
closing of the merger and intends to distribute the balance of such
shares following a six-month lock-up period.
Kustom Entertainment is comprised of TicketSmarter, Inc. and Kustom
440, Inc., both currently wholly owned subsidiaries. Both
TicketSmarter and Kustom 440 will combine their management teams
and focus on concerts, entertainment and garnering additional
ticketing partnerships in 2023 and beyond. Kustom 440 and
TicketSmarter will use their existing sponsorships and sports
property partnerships to develop alternative entertainment options
for consumers.
About Digital Ally
Digital Ally, Inc. (NASDAQ: DGLY), through its subsidiaries, is
engaged in video solution technology, human & animal health
protection products, healthcare revenue cycle management, ticket
brokering and marketing, event production and jet chartering.
New York, NY-based RBSM LLP, the Company's auditor since 2019,
issued a "going concern" qualification in its report dated March
31, 2023, citing that the Company has incurred substantial
operating losses and will require additional capital to continue as
a going concern. This raises substantial doubt about the Company's
ability to continue as a going concern.
DIOCESE OF ROCHESTER: Continental Insurance Files Reorganizing Plan
-------------------------------------------------------------------
The Continental Insurance Company ("CNA") filed with the U.S.
Bankruptcy Court for the Western District of New York a Disclosure
Statement describing Plan of Reorganization for the Diocese of
Rochester dated December 12, 2023.
The Plan Proponent prepared this Disclosure Statement to describe
the CNA Plan that the Plan Proponent filed to provide survivors of
abuse ("Survivors") with a choice regarding how to receive the
compensation for the acts of abuse perpetrated by priests,
employees, or other individuals affiliated with the Diocese of
Rochester and its parishes.
By way of the CNA Plan, the Plan Proponent offers to Survivors a
total compensation fund of not less than $201.35 million, which
will be funded by prior commitments from the Diocese and other
Settling Insurers and a new offer from CNA of $75 million.
CNA's commitment to fund the Trust with $75 million is made only
under the CNA Plan; that commitment is not available under the plan
proposed by the Diocese and the Committee (the "Diocese Plan").
Thus, while the amount CNA would pay to the Trust under the CNA
Plan is fixed at $75 million, and is not subject to litigation
risk, the amount CNA could be required to pay under the Diocese
Plan is uncertain; it could be less than $75 million, or it could
be more, and determination of how much CNA would pay under the
Diocese Plan is dependent upon the outcome of litigation, which
could take years. As a consequence, the CNA Plan offers Survivors
more certainty about the amount the Trust will have available to
distribute to Survivors.
The CNA Plan allows Survivors to speak for themselves regarding
whether they prefer to accept the certainty of timely receiving $75
million that would be contributed by CNA to the Trust under the CNA
Plan, without the risks, costs, and delay they would be required to
bear to obtain payment from CNA under the Diocese Plan. CNA's Plan
will give Survivors the ability to choose between (i) a guaranteed,
fixed sum that CNA would pay to the Trust without the need for
post-bankruptcy litigation (in other words, the money would be
available to Survivors sooner, without years of waiting), and (ii)
the possibility that the Trust might recover more from CNA in the
distant future, and only after prevailing in two different
litigations.
Class 3 consists of all General Unsecured Claims. Unless the holder
of an Allowed General Unsecured Claim agrees in writing to accept
less favorable treatment, the Reorganized Diocese shall pay each
holder of an Allowed General Unsecured Claim, Cash in two
installments each equal to 50% of the Allowed amount of such
General Unsecured Claim, as set forth in the CNA Plan. The Trust
shall not be responsible for payment of General Unsecured Claims.
Class 3 is Impaired.
Class 4 consists of all Abuse Claims. On the Effective Date and
subject to the CNA Plan provisions, the Trust shall be authorized
to pay all Abuse Claims on a fair and equitable basis in accordance
with the Allocation Protocol and Plan Documents, as promptly as
practicable following the Effective Date. Class 4 Claims shall be
satisfied solely from the Trust as set forth in the CNA Plan, the
Trust Agreement, and the Allocation Protocol.
If a Survivor accepts the Trust Settlement Offer, then the Survivor
has a Trust Claim and will receive prompt, full, and final
compensation in the form of a Distribution in the amount of the
Trust Settlement Offer. The rights of Survivors with Trust Claims
to a trial by jury is waived and released.
If a Survivor rejects the Trust Settlement Offer, then the Survivor
has a Tort Claim and may pursue litigation, at his or her own
expense, against the Diocese or any Participating Party as a
defendant, for the purpose of adjudicating whether the Diocese or
Participating Party has liability for an Abuse Claim and the amount
of any such liability, with the amount of his or her Trust
Settlement Offer held in reserve until such time following Final
Judgment as the applicable Distribution may be made pursuant to the
terms of the Allocation Protocol.
The Trust shall fund the Trust Reserve, the Payment Reserve, and
the Unknown Abuse Claim Reserve as set forth in the CNA Plan.
Otherwise, all proceeds of the Trust shall be distributed to
holders of Abuse Claims, including both Trust Claims and Tort
Claims, on a fair and equitable basis.
Class 6 Insurer Claims consist of unsecured Claims by CNA against
the Diocese arising out of the Diocese's breach of the Prior
Insurance Settlement Agreement with CNA, to the extent such Claims
are deemed not to be unclassified Administrative Claims. If the CNA
Plan is confirmed, then CNA agrees to withdraw its Class 6 Insurer
Claim on the Effective Date.
The Plan Proponent believes the CNA Plan presents an opportunity
for Survivors to obtain larger, more certain recoveries, and
payment in full earlier, than that which is likely to be achieved
under other alternatives, including the Diocese Plan. Under the CNA
Plan, Survivors will be eligible for compensation paid promptly
from a fund totaling $201.35 million, on a fair and equitable basis
as set forth in the Allocation Protocol.
The Trust will be established by the Trust Agreement. The Plan
Proponent anticipates establishment of the Trust will be materially
the same as in the Diocese's proposed plan. The key differences are
as to how the Trust will be funded, the anticipated amount of Trust
Expenses, and how claims will be paid:
* Under the CNA Plan, the initial funding of the Trust will
total $201.35 million in cash. There are no known Insurance Claims
to assign to the Trust because there are no known Non-Settling
Insurers. In contrast, the Diocese's proposed plan will fund the
Trust with only $126.35 million in cash; in addition, contingent
claims against CNA under insurance policies allegedly issued by CNA
would be assigned to the Trust under the Diocese Plan.
* Under the CNA Plan, there are no anticipated Insurance
Claims to pursue, because CNA is a Settling Insurer. The Plan
Proponent therefore anticipates Trust Expenses will be lower than
under the Diocese Plan, which requires the Trust to pay attorneys
to pursue litigation against CNA.
* Under the CNA Plan, all Abuse Claims, including Tort Claims,
will be paid from the Trust. A Survivor who obtains a Final
Judgment on his or her Tort Claim will receive payment from the
Trust as set forth in the Allocation Protocol. Under the Diocese
Plan, by contrast, if a Survivor obtains a judgment against the
Diocese following litigation in the tort system, the Survivor must
either (i) assign the judgment to the Trust and the Trust will seek
payment from CNA, or (ii) the Survivor may pursue CNA directly for
payment of the judgment.
A full-text copy of the Disclosure Statement dated December 12,
2023 is available at https://urlcurt.com/u?l=c5Bwxp from
PacerMonitor.com at no charge.
Attorneys for The Continental Insurance Company:
Jeffrey A. Dove, Esq.
BARCLAY DAMON LLP
Barclay Damon Tower
125 East Jefferson Street
Syracuse, New York 13202
Telephone: (315) 413-7112
Email: jdove@barclaydamon.com
Mark D. Plevin, Esq.
CROWELL & MORING LLP
Three Embarcadero Center, 26th Floor
San Francisco, California 94111
Telephone: (415) 986-2800
Email: mplevin@crowell.com
David Christian, Esq.
DAVID CHRISTIAN ATTORNEYS LLC
105 West Madison Street, Suite 1400
Chicago, Illinois 60602
Telephone: (312) 282-5282
Email: dchristian@dca.law
Miranda H. Turner, Esq.
CROWELL & MORING LLP
1001 Pennsylvania Avenue, N.W.
Washington, DC 20004
Telephone: (202) 624-2500
Email: mturner@crowell.com
About The Diocese of Rochester
The Diocese of Rochester in upstate New York provides support to 86
Roman catholic parishes across 12 counties in upstate New York. It
also operates a middle school, Siena Catholic Academy. The diocese
has 86 full-time employees and six part-time employees and provides
medical and dental benefits to an additional 68 retired priests and
two former priests.
The diocese generated $21.88 million of gross revenue for the
fiscal year ending June 30, 2019, compared with a gross revenue of
$24.25 million in fiscal year 2018.
The Diocese of Rochester filed for Chapter 11 bankruptcy protection
(Bankr. W.D.N.Y. Case No. 19-20905) on Sept. 12, 2019, amid a wave
of lawsuits over alleged sexual abuse of children. In the petition,
the diocese was estimated to have $50 million to $100 million in
assets and at least $100 million in liabilities.
Bond, Schoenec & King, PLLC and Bonadio & Co. serve as the
diocese's legal counsel and accountant, respectively. Stretto is
the claims and noticing agent.
The U.S. Trustee for Region 2 appointed an official committee of
unsecured creditors in the diocese's Chapter 11 case. Pachulski
Stang Ziehl & Jones, LLP and Berkeley Research Group, LLC serve as
the committee's legal counsel and financial advisor, respectively.
DMG SECURITY: Bid to Use Cash Collateral Denied
-----------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois,
Eastern Division, denied the motion to use cash collateral filed by
D.M.G. Security, Inc. for the reasons stated on the record in open
court on December 11, 2023.
As previously reported by the Troubled Company Reporter, the Debtor
is indebted and liable to United Capital Funding Group, LLC, in the
approximate amount between $100,000and $150,000 for various
receivable owed to the Debtor by Chicago Transit Authority, Skytech
and Steiner Security that were factored by United.
To secure its position in the Debtor's receivables United filed a
UCC-1 Filing. The lien provides that the Debtor's equipment,
receivables, etc., are pledged as security for the moneys advanced
by United with the factoring of certain of the Debtor's
receivables.
A copy of the order is available at https://urlcurt.com/u?l=9Mb3G4
from PacerMonitor.com.
About D.M.G. Security, Inc.
D.M.G. Security, Inc. sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 23-15180) on
November 10, 2023.
In the petition signed by Debra M. German, president, the Debtor
disclosed up to $100,000 in assets and up to $500,000 in
liabilities.
Judge Donald R. Cassling oversees the case.
William E. Jamison, Jr. Esq., at William E. Jamison & Associates,
represents the Debtor as legal counsel.
DOBBS TRUCKING: Seeks to Hire Newman & Newman as Counsel
--------------------------------------------------------
Dobbs Trucking, LLC seeks approval from the U.S. Bankruptcy Court
for the Southern District of Mississippi to employ Newman & Newman
as counsel.
The firm will provide these services:
a. advise and consult with the debtor-in-possession regarding
questions arising from certain contract negotiations which will
occur during the operation of business by the
Debtor-in-possession;
b. evaluate and attach claims of various creditors who may
assert security interests in the assets and who may seek to disturb
the continued operation of the business;
c. appear in, prosecute, or defend suits and proceedings, and
take all necessary and proper steps and other matters and things
involved in or connected with the affairs of the estate of the
Debtor;
d. represent the applicant in court hearings and assist in the
preparation of contracts, reports, accounts, petitions,
applications, orders and other papers and documents as may be
necessary in the bankruptcy proceeding;
e. advise and consult with the Debtor in connection with any
reorganization plan which may be proposed in the proceeding and any
matters concerning applicant which arise out of or follow the
acceptance or consummation of such reorganization or its
rejection;
and
f. perform such other legal services on behalf of the Debtors as
they become necessary in the bankruptcy proceeding.
The firm will be paid $350 per hour for J. Walter Newman IV, and
$150 per hour for legal assistants.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
J. Walter Newman IV, Esq., a partner at Newman & Newman, 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:
J. Walter Newman IV, Esq.
Newman & Newman
587 Highland Colony Parkway
Ridgeland, MS 39157
Tel: (601) 948-0586
Email: wnewman95@msn.com
About Dobbs Trucking, LLC
Dobbs Trucking, LLC filed a petition under Chapter 11, Subchapter V
of the Bankruptcy Code (Bankr. N.D. Miss. Case No. 23-12021) on
July 6, 2023.
Randall R. Saxton of Saxton Law, PLLC is the Debtor's legal
counsel.
DOMUS BWW: Seeks to Hire Asterion Inc. as Financial Advisor
-----------------------------------------------------------
Domus BWW Funding, LLC and its affiliates seek approval from the
U.S. Bankruptcy Court for the Eastern District of Pennsylvania to
employ Asterion, Inc. as financial advisor.
The firm will provide these services:
a. assist the Debtors in preparation of financial projections,
liquidation analysis and other schedules in support of the Plan,
and Disclosure Statement, as amended;
b. assist the Debtors in the negotiations with lenders,
creditors and other parties-in-interest regarding the Plan, as
requested;
c. assist with the analysis and reconciliation of claims against
the Debtors, as requested;
d. provide testimony at any hearings that constitute part of the
Chapter 11 process, including, financial matters relating to the
Plan, the feasibility of such Plan, the valuation of the entities,
and interests retained under the Plan;
e. interact with other retained professionals and other
parties-in-interest;
f. provide potential expert testimony; and
g. perform such other tasks as appropriate and as may be
requested by the Debtors' management or the Debtors' counsel.
The firm will be paid at these rates:
Principals and Managing Directors $300 to $550 per hour
Consultants $225 to $345 per hour
Associates and Staffs $100 to $220 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Stephen J. Scherf, a principal at Asterion, Inc., disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Stephen J. Scherf
Asterion, Inc.
1617 JFK Boulevard, Suite 1040
Philadelphia, PA 19103
Tel: (215) 893-9901
About Domus BWW Funding, LLC
Domus BWW Funding, LLC, and 1801 Admin, LLC, filed their voluntary
petitions for relief under Chapter 11 of the Bankruptcy Code
(Bankr. E.D. Pa. Lead Case No. 22-11162) on May 3, 2022, listing up
to $500,000 in assets and up to $50,000 in liabilities.
Judge Eric L. Frank presides over the cases.
The Debtors tapped Aris J. Karlis, Esq., at Karalis PC as
bankruptcy counsel. Dinsmore & Shohl LLP, McGuireWoods LLP, Landis
Rath & Cobb LLP, Perkins Coie LLP, Gateley Plc, Anderson Kill PC,
and Dechert LLP serve as special counsel.
DONELSON CORPORATE: Files Emergency Bid to Use Cash Collateral
--------------------------------------------------------------
Donelson Corporate Centre, Limited Partnership asks the U.S.
Bankruptcy Court for the Middle District of Tennessee, Nashville
Division, for authority to use cash collateral.
The Debtor requires the use of cash collateral to pay operating
expenses, including insurance, utilities, tenant improvements,
cleaning, landscaping, and maintenance.
Wells Fargo Bank, N.A. delivered a notice of foreclosure to the
Debtor on November 10, 2023. The Debtor was forced to seek Chapter
11 protection to preserve the substantial equity in its office park
situated on a 21.77-acre parcel located at 3055 Lebanon Pike,
Nashville, Tennessee.
As of the petition date, Wells Fargo is the only entity the Debtor
is aware of that may rightfully claim a security interest in cash
collateral.
Based on a review conducted by the Debtor prior to the Petition
Date, Wells Fargo holds a first priority lien on substantially all
of the Debtor's assets, including cash collateral, pursuant to
certain loan documents and UCC-1 Financing Statements. As of the
Petition Date, the balance due on such loan is approximately $15.8
million and the collateral that secures it is worth approximately
$36 million.
As for adequate protection for the limited use of cash collateral,
the Debtor proposes to provide to the Secured Creditor replacement
liens in accordance with 11 U.S.C. sections 361(2) and 552(b) to
the extent of cash collateral actually expended, and on the same
assets and in the same order of priority as existed immediately
prior to the Petition Date. Any replacement lien will be to the
same extent and with the same validity and priority as the Secured
Creditor's pre-petition liens, without the need to file or execute
any document as may otherwise be required under applicable
nonbankruptcy law.
A copy of the Debtor's motion and budget is available at
https://urlcurt.com/u?l=oc8VCN from PacerMonitor.com.
The Debtor projects total expenses, on a weekly basis, as follows:
$2,255 for the week ending December 17, 2023;
$28,245 for the week ending December 24, 2023; and
$16,199 for the week ending December 31, 2023.
About Donelson Corporate Centre, Limited Partnership
Donelson Corporate Centre, Limited Partnership owns real property
located at 3055 Lebanon Pike, Nashville, TN 37214 having an
appraised value of $36 million.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. M.D. Tenn. Case No. 23-04512) on December
8, 2023. In the petition signed by Floyd Shechter as chief manager
of JS Development, LLC (General Partner), the Debtor disclosed
$42,311,296 in assets and $16,472,593 in liabilities.
Judge Marian F. Harrison oversees the case.
Robert J. Gonzales, Esq., at Emergelaw, PLC, represents the Debtor
as legal counsel.
DURAND LAND: U.S. Trustee Unable to Appoint Committee
-----------------------------------------------------
The U.S. Trustee for Region 11 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of Durand Land Holdings, LLC.
About Durand Land Holdings
Durand Land Holdings, LLC filed Chapter 11 petition (Bankr. W.D.
Wis. Case No. 23-12045) on Nov. 14, 2023, with as much as $50,000
in both assets and liabilities.
Judge Catherine J. Furay oversees the case.
Joshua D. Christianson, Esq., at Christianson & Freund, LLC is the
Debtor's legal counsel.
EBIX INC: Case Summary & 30 Largest Unsecured Creditors
-------------------------------------------------------
Lead Debtor: Ebix, Inc.
1 Ebix Way
Johns Creek, GA 30097
Business Description: Ebix is an international supplier of on-
demand infrastructure software exchanges and
e-commerce services to the insurance,
financial, travel, cash remittances, and
healthcare industries.
Chapter 11 Petition Date: December 17, 2023
Court: United States Bankruptcy Court
Northern District of Texas
Twelve affiliates that concurrently filed voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
Ebix, Inc. (Lead Case) 23-80004
Ebix US, LLC 23-80003
Vertex, Incorporated 23-80005
P.B. Systems, Inc. 23-80006
Ebix Consulting, Inc. 23-80007
Facts Services, Inc. 23-80008
Doctors Exchange, Inc. 23-80009
Ebix International LLC 23-80010
Agency Solutions.com, LLC 23-80011
ConfirmNet Corporation 23-80012
A.D.A.M., Inc. 23-80013
Ebix Latin America, LLC 23-80014
Judge: Hon. Scott W. Everett
Debtors' Counsel: Thomas R. Califano, Esq.
SIDLEY AUSTIN LLP
2021 McKinney Avenue, Suite 2000
Dallas, TX 75201
Tel: (214) 981-3300
Email: tom.califano@sidley.com
Debtors'
Financial
Advisor: ALIXPARTNERS, LLP
Debtors'
Investment
Banker: JEFFERIES LLC
Debtors'
Claims,
Noticing,
and Solicitation
Agent: OMNI AGENT SOLUTIONS, INC.
Estimated Assets
(on a consolidated basis): $500 million to $1 billion
Estimated Liabilities
(on a consolidated basis): $500 million to $1 billion
The petitions were signed by Amit K. Garg as chief financial
officer.
A full-text copy of the Lead Debtor's petition is available for
free at PacerMonitor.com at:
https://www.pacermonitor.com/view/A2NMZVA/Ebix_Inc__txnbke-23-80004__0001.0.pdf?mcid=tGE4TAMA
Consolidated List of Debtors' 30 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
1. Amadeus IT Group Arbitration $6,819,457
171 17th Street, NW Award
Suite 2100
Atlanta, GA 30363
c/o Darryl S. Laddin, Esq.
Arnall Golden Gregory LLP
Tel: (404) 873-8120
Email: darryl.laddin@agg.com
2. Actian Corporation Trade Debts $688,812
Dept 3593
PO Box 123593
Dallas, TX 75312-3593
Tel: (512) 231-6000
3. PeerVoice UK Ltd Litigation $685,470
Finance Dept, 3rd Floor
75 Davies Street
London, UK W1K 5JN
Christopher Meazell
Potomac Law Group, PLLC
1717 Pennsylvania Avenue,
Ste. 1250
Washington, D.C. 200006
Tel: (202) 302-6543
Email: cmeazell@potomaclaw.com
4. Brigham and Women's Hospital Trade Debts $500,658
Department of Medicine
1620 Tremont St
4th Floor
Boston, MA 02120
Tel: (617) 732-6393
5. Answers In CME Litigation $476,649
71 Broadway 2B
Suite 185
New York, NY 10006
Christopher Meazell
Potomac Law Group, PLLC
1717 Pennsylvania Avenue
Ste. 1250
Washington, D.C. 200006
Tel: (202) 302-6543
Email: cmeazell@potomaclaw.com
6. Nelson Mullins Trade Debts $309,547
Atlantic Station
201 17th St, NW
Atlanta, GA 30363
Tel: (404) 322-6000
7. Amazon Web Services, Inc. Trade Debts $202,278
PO Box 84023
Seattle, WA 98124-8423
8. Zakipoint Health Inc. Trade Debts $171,923
14th Floor, One Broadway
Cambridge, MA 02142
Tel: (617) 992-4111
Email: RAMESH.KUMAR@ZAKIPOINTHEALTH.COM
9. Fair Health, Inc. Trade Debts $154,769
PO Box 3820
New York, NY 10163
Tel: (212) 370-0704
10. Craftsman Printing, Inc. Trade Debts $140,514
120 Citation Court
Birmingham, AL 35209
Tel: (205) 945-4126
11. Life Products Solutions Trade Debts $140,292
Group
7900 Red Road, PH23
Miami, FL 33143
Tel: (305) 668-8780
12. Change Healthcare Trade Debts $140,046
PO Box 572490
Murray, UT 84157-2490
Tel: (866) 371-9066
13. Ernst & Young US LLP Trade Debts $130,905
Wells Fargo Bank, NA
P.O. Box 933514
Atlanta, GA 31193-3514
Tel: (404) 874-8300
14. Ascension Growth & Trade Debts $129,165
Innovation Strategies LLC
c/o Craig Apatov Mng Partner
2000 Riveredge Pkwy Ste 945
Atlanta, GA 30328
Craig Apatov - MNG Partner
Tel: (404) 250-4547
15. UC Regents - San Francisco Trade Debts $118,655
Attn: Tym Peters
Office of CME Box 0742
490 Illinois Street Floor 8
San Francisco, CA 94143
Tel: (800) 207-1710
16. IQVIA Inc. Trade Debts $105,447
PO Box 8500-784290
Philadelphia, PA 19178-4290
Tel: (866) 267-4479
17. Google Inc. Trade Debts $101,481
Dept 33654 - PO Box 39000
San Francisco, CA 94139
Tel: (650) 253-0000
18. 365 Operating Company, LLC Trade Debts $89,696
Bank of America, NA
222 Broadway
New York, NY 10038
Tel: (415) 901-5700
19. FCI Cyber Inc. Trade Debts $89,491
400 Broadacres Dr
Ste 270
Bloomfield, NJ 07003
Tel: (973) 227-8878
20. Leader Berkon Colao & Trade Debts $84,840
Silverstein LLP
630 Third Avenue
New York, NY 10017
Tel: (212) 486-2400
21. McNair, Mclemore, Trade Debts $81,919
Middlebrooks & Co. LLC
P.O. Box One
Macon, GA 31202
Tel: (478) 746-6277
Email: WINTERS@MMMCPA.COM
22. Katon Partners LLC Trade Debts $73,020
2 Landmark Square Ste 214
Stamford, CT 06901
Tel: (914) 921-8800
23. Cyxtera Communications, LLC Trade Debts $71,944
13322 Collection Center Dr
Chicago, IL 60693-0133
Tel: (305) 537-9500
24. St. Moritz Security Services Litigation $68,425
4600 Clairton Blvd.
Pittsburgh, PA 15236-2114
Matthew A. Ficus/
Marlena N. Carlini
Ficus & Ball
1605 Carmody Court; Suite 102
Sewickley, PA 15143
Tel: (412) 456-9700
Email: MFICUS@FISCUSBALL.COM
MCARLINI@FICUSBALL.COM
25. Spark IPS Trade Debts $67,978
PO Box 371
Coventry, CT 06238
Tel: (860) 508-2269
Email: SUZANNEBRAZEAL@SPARKIPS.COM
26. Veracode Inc. Trade Debts $61,114
65 Blue Sky Drive
Burlington, MA 01803
Tel: (339) 674-2500
27. S&P Global Market Trade Debts $57,069
Intelligence
33356 Collection Center Dr
Chicago, IL 60693-0333
Tel: +1 (888) 275-2822
28. Calvo, Javier Class Action Unliquidated
In Re Ebix, Inc. Shareholder Lawsuit
Derivative Litigation
Calvo V. Raina, Et Al.
Benjamin Isaac Sachs-Michaels
Glancy Prongay & Murray LLP
745 Fifth Avenue
5th Floor
New York, NY 10151
Tel: (212) 935-7400
Email: BSACHSMICHAELS@GLANCYLAW.COM
29. Votto, Peter Class Action Unliquidated
In Re Ebix, Inc. Shareholder Lawsuit
Derivative Litigation
Votto V. Raina, Et Al.
Justin Aaron Kuehn
Moore Kuehn, PLLC
30 Wall Street, 8th Floor
New York, NY
Tel: (212) 709-8245
Email: JKUEHN@MOOREKUEHN.COM
30. Black Dragon Capital, LLC Litigation Unliquidated
6400 W. Boynton Beach Blvd,
Suite 740486
Boynton Beach FL 33474
Akerman LLP
Scott M. Kessler, Esq.
Megan M. Admire, Esq.
520 Madison Avenue
20th Floor
New York, NY 10022
Tel: (212) 880-3800
EBIX INC: Files Chapter 11 to Facilitate Sale
---------------------------------------------
Ebix, Inc. (NASDAQ: EBIX), a leading international supplier of
on-demand software and e-commerce services to the insurance,
financial services, travel, healthcare, and e-learning industries,
on Dec. 18 disclosed that it has reached a "stalking horse"
agreement to sell its North American Life and Annuity assets (the
"NA L&A Assets") to Zinnia, an Eldridge business and leading life
insurance and annuity technology and service company, as part of
its efforts to strengthen its balance sheet and position the
Company for sustainable growth. This agreement is part of the
strategic decision by the Company to seek a value-maximizing
transaction that will benefit all stakeholders and put the company
on the path towards sustainable growth and profitability. The NA
L&A Assets being sold, accounted for 14.5% of Ebix's worldwide GAAP
revenues for the Year-to-date 9-month period preceding Sep.30(th)
2023.
To provide the time needed to identify and execute on its plans to
effectuate the NA L&A Assets sale and to deleverage its balance
sheet in a timely and efficient manner with the support of its key
creditors and customers, U.S.-based Ebix, Inc. and certain U.S.
affiliates (the "Company" or "Ebix") filed for protection under
Chapter 11 of the U.S. Bankruptcy Code. Ebix's approximately 200
affiliates outside the United States are not included in the
U.S.-only Chapter 11 filing and will continue to operate normally.
Ebix's international subsidiaries and their franchisees around the
world are similarly not included in the Chapter 11 filing. All
worldwide operations of the Company will continue to operate in the
ordinary course and without any interruption.
The Company will continue working with its existing customers,
vendors, partners, and other stakeholders in the ordinary course of
business. Ebix has secured the debtor-in-possession financing from
its existing lenders to consummate these proceedings and continue
business in the ordinary course. Zinnia's proposed acquisition of
the NA L&A Assets would allow for a seamless transition for Ebix's
customers.
"Zinna's proposal acts as a baseline for competitive bids for the
acquisition of our North American Life and Annuity assets to a
prospective strategic software company, who can seamlessly handle
our NA L&A customer base. During the Chapter 11 process, operations
worldwide will continue in the ordinary course while we complete
the marketing and sale process to address the maturity of the
Company's credit facility," said Robin Raina, President and CEO of
Ebix. "With less than 15% of our worldwide revenues coming from the
NA L&A assets being sold to address the credit, and the rest of the
businesses of the Company continuing to exhibit strong
fundamentals, we believe that the Company's future is bright --
with strong operating fundamentals, a robust business model,
world-class products, and a continued ability to generate healthy
operating cash flows across the world."
The sale will be implemented under Section 363 of the Bankruptcy
Code, which will allow other potential bidders to submit bids
through a Court-supervised competitive bidding process and allows
for an auction of the NA L&A Assets. A "stalking horse" agreement
serves to set up a baseline price by Zinnia for competitive bids,
for the acquisition of Ebix's NA L&A assets. Under the terms of the
asset purchase agreement (the "APA"), Zinnia will pay $400 million
subject to certain purchase price adjustments as set forth in the
APA, subject to Court approval.
The Company has retained Jefferies LLC as investment banker to
assist in conducting a value-maximizing marketing and sale process
of the NA L&A Assets. The Company continues to engage with both
strategic and institutional buyers regarding a potential sale
transaction.
The Company has filed with the Court a series of customary "First
Day Motions" to facilitate a smooth continuation of day-to-day
operations for customers, employees, and other business partners.
The motions are expected to be addressed by the Court in the coming
days.
Court filings and other documents related to the court proceedings
are available on a separate website administered by Ebix's claims
agent, Omni Agent Solutions, Inc. Email inquiries about the case
can be sent to ebixinquiries@omniagnt.com.
Ebix is represented by Sidley Austin LLP as legal counsel,
AlixPartners, LLP as its financial advisor, and Jefferies LLC as
its investment banker.
About Zinnia
Zinnia, an Eldridge business, powers exceptional insurance
experiences, meeting the needs of consumers, advisors, and
insurers. Through its technology solutions, marketplace offerings,
TPA services, and data insights, Zinnia is building the modern
infrastructure of the insurance industry to democratize insurance
access for all. Zinnia is also backed by funds managed by KKR, a
leading global investment firm.
About Ebix's NA L&A Assets
Ebix's NA L&A Assets include AnnuityNet and LifeSpeed, the industry
leading Order Entry platform; WinFlex, a market-leading
multi-carrier illustration tool used by over 35 carriers and more
than 275,000 users; TPP (The Policy Processor), an industry leading
underwriting platform; and SmartOffice, an insurance vertical
driven CRM tool used by more than 35,000 agencies and advisors.
About Ebix, Inc.
With approximately 200 offices across 6 continents, Ebix, Inc.,
(NASDAQ: EBIX) endeavors to provide on-demand infrastructure
exchanges to the insurance, financial services, travel and
healthcare industries.
With a "Phygital" strategy that combines over 650,000 physical
distribution outlets in India and many Southeast Asian Nations
("ASEAN") countries as of December 31, 2021, to an Omni-channel
online digital platform, the Company's EbixCash Financial exchange
portfolio of software and services encompasses domestic and
international money remittance, foreign exchange (Forex), travel,
pre-paid gift cards, utility payments, lending and wealth
management across 75+ countries including India. EbixCash's Forex
operations are carried out primarily through 82 retail branches, 62
retail kiosks in 16 international airports, including Delhi,
Mumbai, Hyderabad, Chennai and Kolkata, 12 seaports, over 250
franchise partners across 69 cities, as well as offered through
more than 1200 corporate clients, more than 27 bank clients, and
5-star hotels in India. EbixCash, through its travel portfolio of
Via and Mercury, is also one of the leading non-bank travel
exchanges based in India and catering to approximately 517,000
agents and approximately 17,900 registered corporate clients as of
December 31, 2021. EbixCash's financial technologies business
offers software solutions at the enterprise level for banks, asset
and wealth management companies and trust companies within India,
Southeast Asia, the Middle East and Africa. EbixCash's business
process outsourcing services provide information technology and
call center services to a variety of industries.
For more information, visit the Company's website at www.ebix.com
EDC 2370: Court OKs Interim Cash Collateral Access
--------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of New York
authorized EDC 2370, LLC to use cash collateral on an interim
basis, in accordance with the budget and its agreement with F
Street Investments, LLC.
EDC 2370, LLC and F Street Investments, LLC agreed that the Debtor
may use cash collateral in the form of rents collected.
F Street is the first position mortgage holder on the Maple
Properties, along with two other properties. F Street filed a
foreclosure case in Milwaukee Count) Case No. 2022CV003029 on
September 22, 2022. An Order for Judgment of Foreclosure and for
Guarantor Money Judgment was signed on February 27, 2023. The
Foreclosure Judgment and the guarantor Money Judgment were docketed
on March 31, 2023.
F Street's claim is secured by both the Properties and by rents
pursuant to the Security Documents at item 26(a).
F Street is willing to consent to the use of its cash collateral,
subject to the following:
a. The Parties agree that F Street has a continued security
interest in the Rents.
b. The Debtor will deposit and segregate the Rents in the debtor in
possession account previously established at Associated Bank;
c. The Debtor will account for the Rents in its monthly operating
reports;
d. The Debtor will make monthly adequate protection payments to F
Street in the amount of $2,000 on or before the 20th day of each
month beginning December 15, 2023 continuing through the date of
plan confirmation;
c. The Debtor may use the cash collateral of F Street to pay a
$4,000 deposit to the subchapter V trustee, lana Vladimirova for
her fees;
f. The Deblor may use the cash collateral of F Street for the
expenses of the Debtor as provided in the budget:
g. The adequate protection payments provided for in the Interim
Agreement are in no way intended to operate as a settlement or
negotiation for plan purpose;
h. Other than provided for in the Agreement, the Debtor will not
use the cash collateral of F Street without either written consent
of F Street or an order of the Court;
i. The Debtor will maintain adequate insurance coverage on the
Maple Properties and provide proof of such coverage at the request
of F Street or any other interested party; and
j. The Debtor's failure to comply with the terms of the Agreement
terminates the Debtor's right to use F Street's cash collateral.
A copy of the order is available at https://urlcurt.com/u?l=y7r1hp
from PacerMonitor.com.
About EDC 2370
EDC 2370, LLC filed a petition under Chapter 11, Subchapter V of
the Bankruptcy Code (Bankr. E.D. Wis. Case No. 23-24219) on Sept.
15, 2023, with $100,001 to $500,000 in both assets and
liabilities.
Judge Katherine M. Perhach oversees the case.
Jonathan V. Goodman, Esq., at the Law Offices of Jonathan V.
Goodman represents the Debtor as bankruptcy counsel.
EDGEWOOD FOOD: Hires Bharti Desai CPA P.C. as Accountant
--------------------------------------------------------
Edgewood Food Mart, Inc. seeks approval from the U.S. Bankruptcy
Court for the Northern District of Georgia to employ Bharti Desai
CPA, P.C. as accountant.
The firm will provide the Debtor general financial review, tax
advice, and preparing tax returns.
The firm will be paid at the rate of $425 per hour.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Bharti Desai, CPA, a partner at Bharti Desai CPA, P.C., disclosed
in a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Bharti Desai, CPA
Bharti Desai CPA, P.C.
1584 Roswell Road
Marietta, GA 30062
Tel: (770) 321-9798
About Edgewood Food Mart, Inc.
Edgewood Food Mart, Inc., a domestic profit company in Georgia,
filed a petition under Chapter 11, Subchapter V of the Bankruptcy
Code (Bankr. N.D. Ga. Case No. 23-61204) on Nov. 10, 2023, with up
to $500,000 in assets and up to $10 million in liabilities.
Tamara Miles Ogier, Esq., at Ogier, Rothschild & Rosenfeld, PC
represents the Debtor as legal counsel.
ENSIGN ENERGY: S&P Withdraws 'CCC+' Issuer Credit Rating
--------------------------------------------------------
S&P Global Ratings withdrew its 'CCC+' issuer credit rating on
Ensign Energy Services Inc. at the company's request. At the time
of the withdrawal, S&P's outlook on Ensign was negative. The
company had no rated debt outstanding following the full redemption
of its $417.5 million of outstanding notes on Dec. 14, 2023.
ENTRADA DEVELOPMENT: Hires Joyce W. Lindauer Attorney as Counsel
----------------------------------------------------------------
Entrada Development, LLC seeks approval from the U.S. Bankruptcy
Court for the Western District of Texas to employ Joyce W. Lindauer
Attorney, PLLC as counsel.
The Debtor requires legal counsel to effectuate a reorganization,
propose a Chapter 11 plan of reorganization, and effectively move
forward in its bankruptcy proceeding.
The firm will be paid at these rates:
Joyce W. Lindauer, Esq. $495 per hour
Paul B. Gelilich, Of Counsel $395 per hour
Sydney Ollar, Associate Attorney $295 per hour
Laurance Boyd, Associate Attorney $250 per hour
Dian Gwinnup, Paralegal $225 per hour
In addition, the firm will seek reimbursement for out-of-pocket
expenses incurred.
The firm received a retainer of $11,738 from the Debtor.
Joyce Lindauer, Esq., the owner of the firm, disclosed in a court
filing that the firm is a "disinterested person" as defined in
Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Joyce W. Lindauer, Esq.
Joyce W. Lindauer Attorney, PLLC
1412 Main Street, Suite 500
Dallas, TX 75202
Telephone: (972) 503-4033
Facsimile: (972) 503-4034
Email: joyce@joycelindauer.com
About Entrada Development, LLC
Entrada Development, LLC in The Hills TX, filed its voluntary
petition for Chapter 11 protection (Bankr. W.D. Tex. Case No.
23-10941) on November 7, 2023, listing as much as $1 million to $10
million in both assets and liabilities. Michael Dixson as
president, signed the petition.
JOYCE W. LINDAUER ATTORNEY, PLLC serve as the Debtor's legal
counsel.
FANJOY CO: Court OKs Cash Collateral Access Thru Jan 2024
---------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Georgia,
Atlanta Division, authorized Fanjoy Co. to continue using cash
collateral on a final basis, in accordance with the budget, through
January 31, 2024.
The Debtor requires the use of cash collateral to pay operating
expenses of the business.
As previously reported by the Troubled Company Reporter,
Corporation Service Company as representative for CircleUp Credit
Advisors LLC, asserts liens upon the Debtor's assets as more
particularly described in the UCC Initial Filing Number 2022 548811
filed on September 8, 2022, with the Delaware Department of State,
securing an outstanding indebtedness in the approximate amount of
$2.275 million.
CT Corporation System, as representative, asserts liens upon the
Debtor's assets as more particularly described in the UCC Initial
Filing Number 2023 2214749 filed on March 23, 2023, with the
Delaware Department of State. The Debtor is unsure of which
creditor CT is serving as a representative, but shows it may be
for: (i) WebBank (Shopify Capital), with an estimated asserted
claim of $336,797; (ii) Fifth Floor Fund 1, LLC or OnRampFund or
ECommerce Funding, LLC, with an estimated asserted claim of
approximately $79,500; (iii) ClearCo, with an estimated asserted
claim of approximately $60,000; or (iv) Slope with an estimated
asserted claim of approximately $90,000.
The Debtor asserted that CircleUp's interests in the Prepetition
Collateral are adequately protected by the Debtor's continued
operation and preservation of the Prepetition Collateral. CircleUp
asserts that its interest in the Prepetition Collateral is not
currently adequately protected, and the Debtor is unable to provide
adequate protection. Notwithstanding the foregoing, CircleUp does
not object to the Debtor's use of cash collateral pursuant to the
terms of the Order.
On the Petition Date, the Debtor had approximately $370,000 cash on
hand and approximately $77,200 inventory on hand.
A copy of the order is available at https://urlcurt.com/u?l=0BfuSX
from PacerMonitor.com.
About Fanjoy Co.
Fanjoy Co. has been operating since 2014 and was incorporated in
Delaware in 2014 to provide platform and merchandise marketplace
services to social media content creators. The Debtor operates the
fanjoy.co website, which provides end-to-end design, production,
fulfillment, customer support, e-mail marketing, photoshoots,
product shots, and paid advertisement services for its Content
Creators. The Business is operated by the Debtor's principal,
Christopher Vaccarino, out of his residence in Brookhaven, Georgia.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ga. Case No. 23-57565) on August 8,
2023. In the petition signed by Christopher Vaccarino, president,
the Debtor disclosed up to $500,000 in assets and up to $10 million
in liabilities.
Judge Paul W. Bonapfel oversees the case.
Leslie Pineyro, Esq., at Jones and Walden, LLC, represents the
Debtor as legal counsel.
FINANCE OF AMERICA: Moody's Cuts CFR to 'Caa2', Outlook Negative
----------------------------------------------------------------
Moody's Investors Service has downgraded Finance of America Funding
LLC's (FOA) corporate family rating to Caa2 from Caa1 and its
senior unsecured debt rating to Caa3 from Caa2. Following the
downgrade, FOA's outlook was changed to negative from stable.
RATINGS RATIONALE
The downgrade of FOA's ratings reflects the company's very high
leverage combined with continued weak profitability. In the third
quarter, FOA reported a net loss from continuing operations of $172
million, equal to (2.6%) of its average assets (ROA), following a
net loss from continuing operations of $221 million in the second
quarter, which amounted to a (3.3%) ROA. The losses were driven by
negative fair value marks on the company's loans and related
obligations. This compares to an ROA of 0.8% for 2021 and 2.8% for
2020. Moody's expects FOA's profitability to remain under pressure
as elevated mortgage rates will constrain reverse mortgage
originations.
Moody's views the company's capital position to be very weak with
tangible common equity (TCE, excluding deferred tax assets) of
(0.6%) of tangible managed assets or (1.9%) of adjusted tangible
assets (excluding loans eligible for repurchase and home equity
conversion mortgages) as of September 30, 2023.
In addition, the company's liquidity position is weaker than that
of similarly rated peers. This is because of its exposure to non-US
government agency and non-government-insured loans, which are less
liquid during periods of market stress than US government agency
and government-insured mortgages. Moreover, a high percentage of
the company's assets are encumbered, reducing its ability to access
alternative funding sources.
The company's financing facilities contain and Ginnie Mae requires
various financial covenants which primarily relate to required
capital, liquidity, leverage, and profitability. Given its weak
financial performance, the company was not able to comply with
certain of these financial covenants in the third quarter. The
company obtained waivers or amendments of such affected financial
covenants and as of September 30, 2023 was in compliance with all
other financial covenants. However, FOA's weak profitability
increases the risk of further covenant breaches, giving rise to
potential event risk for its bondholders.
The negative outlook reflects Moody's expectation that the
company's profitability will remain weak over the next 12-18
months, making it difficult for the company to strengthen its
capital position. Furthermore, unless profitability improves
materially and capital levels strengthen, Moody's believes the
company will be challenged to refinance its $350 million of
unsecured debt maturing November 2025.
FOA's Caa3 senior unsecured rating is one notch below its Caa2 CFR,
based on the application of Moody's Loss Given Default for
Speculative-Grade Companies methodology and model. The Caa3 rating
considers priority of claim and strength of asset coverage,
including that the unsecured debt is subordinate to FOA's senior
secured revolving credit facilities.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Given the negative outlook, it is unlikely that a ratings upgrade
will occur over the next 12-18 months. The ratings could be
affirmed at their existing levels and the company's outlook
returned to stable if it is able to successfully refinance its
senior unsecured debt by October 2024 and achieve TCE to adjusted
tangible assets above 2.5%.
The CFR and unsecured bond rating could be upgraded if the
company's financial performance improves materially. This could be
evidenced by demonstrating profitability with net income (excluding
MSR fair value marks) to Moody's calculated risk-weighted assets of
at least breakeven and TCE to adjusted tangible assets (excluding
loans eligible for repurchase and home equity conversion mortgages)
above 5.0%. In addition, for the ratings to be upgraded the company
will likely need to successfully refinance its senior unsecured
debt which matures in November 2025.
The CFR and unsecured bond rating could be downgraded if the
company continues to report sizeable losses or if the company's
liquidity deteriorates further. In addition, the ratings could be
downgraded if the company does not successfully refinance its
senior unsecured debt by October 2024. The unsecured debt rating
could be downgraded if the ratio of secured corporate debt to
unsecured corporate debt increases and remains above 50%.
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Finance
Companies Methodology published in November 2019.
FLEXACAR LLC: Hires Hires John P. Forest as Bankruptcy Counsel
--------------------------------------------------------------
Flexacar LLC seeks approval from the U.S. Bankruptcy Court for the
Eastern District of Virginia to employ John P. Forest, II, Esq., an
attorney practicing in Fairfax, Va., to handle its Chapter 11
case.
The firm's services include giving the Debtor legal advice with
respect to its powers and duties as a debtor and performing all
other legal services for the Debtor which may be necessary to
advance this case to a conclusion.
Mr. Forest will be compensated at his hourly rate of $400.
In a court filing, Mr. Forest disclosed that he is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.
The attorney can be reached at:
John P. Forest, II, Esq.
11350 Random Hills Rd., Suite 700
Fairfax, VA 22030
Telephone: (703) 691-4940
Email: john@forestlawfirm.com
About Flexacar LLC
Flexacar LLC, filed a Chapter 11 bankruptcy petition (Bankr. W.D.
Va. Case No. 23-11984) on December 6, 2023. The Debtor hires John
P. Forest, II, Esq. as counsel.
FR BR HOLDINGS: Moody's Lowers PDR to D-PD, Outlook Negative
------------------------------------------------------------
Moody's Investors Service downgraded FR BR Holdings, L.L.C.'s
Probability of Default Rating to D-PD from Caa1-PD, and
concurrently affirmed the Caa1 Corporate Family Rating and Caa1
senior secured term loan B rating and maintained the negative
outlook. These actions follow FR BR entering into a forbearance
agreement with its term loan lenders, which Moody's views as a
default.
RATINGS RATIONALE
The downgrade of the PDR to D-PD reflects FR BR's failure to pay
off its term loan at maturity on December 14, 2023 pursuant to a
forbearance agreement with its term loan lenders. The Caa1 CFR and
Caa1 senior secured term loan ratings were affirmed based on
Moody's views on recovery. Governance was a key consideration in
this ratings action. The company is in negotiations to refinance
its existing term loan, however, with the timing for completion
uncertain.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Factors that could lead to a downgrade include Moody's lowering its
view on expected recoveries. FR BR's term loan rating is unlikely
to be upgraded in light of the forbearance agreement. The company's
CFR and PDR could be upgraded if the company meaningfully reduces
debt to achieve a sustainable capital structure.
FR BR is a First Reserve backed Delaware incorporated limited
liability company, which owns a 50% equity interest in Blue Racer
Midstream, LLC -- an integrated midstream company focused in the
Utica and Marcellus Shale plays in eastern Ohio Pennsylvania and
West Virginia.
The principal methodology used in these ratings was Midstream
Energy published in February 2022.
FR BR HOLDINGS: S&P Downgrades ICR to 'D' on Missed Payments
------------------------------------------------------------
S&P Global Ratings lowered the issuer credit rating on FR BR
Holdings LLC (FR BR) to 'D' from 'CCC-'. At the same time, S&P
lowered the issue-level rating on its senior secured term loan to
'D' from 'CCC-'.
The downgrade reflects FR BR's failure to fully pay interest due
Nov. 22, 2023, as well as interest and principal payments of term
loan B due Dec. 14, 2023. FR BR has entered into a forbearance
agreement and is in negotiation with its lenders to refinance its
debt.
FR BR Holdings LLC is an affiliate of First Reserve. The company
was established in December 2018 to hold a 50% ownership interest
in Blue Racer Midstream. Blue Racer Midstream Holdings, a wholly
owned subsidiary of the The Williams Cos., holds the other 50%
ownership share in Blue Racer.
Blue Racer operates a $2.5 billion network of natural gas
pipelines, processing plants, fractionators, and related equipment
across 14 counties in Ohio and four counties in West Virginia atop
the Utica and Marcellus shale formations. The company provides
services under both fee- and commodity-based contracts.
FREDRICK LEE: Hires Schwarz CPA PC as Accountant
------------------------------------------------
Fredrick Lee Press Plumbing, LLC seeks approval from the U.S.
Bankruptcy Court for the Northern District of Texas to employ
Schwarz CPA, PC as accountant.
The firm's services include preparation of the 2022 federal, state
and local income tax returns, monthly bank reconciliations,
year-end balance sheet, monthly sales tax filings and audits, Texas
franchise tax preparation and consult on other accounting matters
as needed.
The firm will be paid at these rates:
Officers $310 to 340 per hour
Staffs $165 to 180 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Chris Schwarz, CPA, a partner at Schwarz CPA, PC, 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:
Chris Schwarz, CPA
Schwarz CPA, PC
3400 N Central Expy, Suite 110-255
Richardson, TX 75080
Tel: (469) 609-0041
About Fredrick Lee Press Plumbing, LLC
Fredrick Lee Press Plumbing, LLC is a service and repair plumbing
company specializing in apartment communities in the DFW metro
area.
The Debtor filed Chapter 11 petition (Bankr. N.D. Texas Case No.
23-32662) on Nov. 14, 2023, with $1,425,926 in assets and
$4,416,560 in debts. Nathan Smith, owner, signed the petition.
Judge Michelle V. Larson oversees the case.
Robert C. Lane, Esq., at the Lane Law Firm, represents the Debtor
as bankruptcy counsel.
FREE SPEECH: Hook Families Offered by Jones $55M Over 10 Years
--------------------------------------------------------------
James Nani of Bloomberg Law reports that right-wing conspiracy
theorist Alex Jones on Friday, Dec. 15, 2023, proposed a bankruptcy
exit plan that offers to settle with Sandy Hook Elementary School
shooting victims' families by paying them at least $55 million over
10 years.
The amount represents at least $30 million less than what the
families had proposed, and is a fraction of the roughly $1.4
billion judges ruled they're owed in defamation judgments against
Jones related to to his lies that the 2012 Sandy Hook Elementary
School shooting was a hoax. Jones filed for bankruptcy protection
a year ago, after the judgments.
Those who choose to settle with Jones would share in a pot of at
least $5.5 million annually over 10 years, according to a Chapter
11 plan Jones filed with the US Bankruptcy Court for the Southern
District of Texas on Friday. The plan requires court approval.
Beyond that annual minimum, family members who settle could receive
all the disposable income from Jones' bankrupt Infowars parent
company, Free Speech System LLC, plus half of his own income over
five years, and then a quarter of his income for the next five
years, according to his plan.
In exchange for settling with Jones, Sandy Hook victim families
would receive faster payments but wouldn't be able to continue to
chase him down after his plan for the full worth of their
litigation claims, according to the proposal.
"Unsecured creditors will receive a substantial distribution (and
significantly more than they would receive in a chapter 7
liquidation)," the plan said.
Those who don't settle wouldn't be guaranteed a minimum amount, but
could go after Jones for claims that the court said he can't have
forgive in bankruptcy. Jones's plan also promises to pay higher
priority creditors in full.
"Today is the first time Jones has publicly shared his bankruptcy
plan for being accountable for the harm he's caused the Sandy Hook
Families," said Avi Moshenberg, a McDowell Hetherington bankruptcy
attorney representing a group of the Sandy Hook families. "We're
carefully examining his plan for doing so and will share our views
of it in due time."
Families' Competing Plan
The plan filed Friday, Dec. 15, 2023, contrasts with options laid
out last month by victim families, which proposed that Jones wind
down his bankruptcy by paying creditors at least $85 million over
10 years, or by liquidating his assets. Jones’ bankruptcy lawyer
has called the creditors' proposal unrealistic.
The Sandy Hook families, along with an official committee of Jones'
creditors, argued in court papers that the bankruptcy case for the
right-wing radio host should end by February.
The talk show host's Chapter 11 exit proposal comes after Judge
Christopher M. Lopez in October found that despite Jones' his
bankruptcy, he's still on the hook for about $1.1 billion of the
$1.4 billion in debt he owes from Connecticut and Texas defamation
judgments. The court hasn't yet decided if the remaining $300
million could be wiped out in bankruptcy.
The court this month also gave Jones permission to sell off guns,
jewelry, and other personal items on his Infowars shows, with
proceeds to go to an escrow to pay for legal fees related to his
bankruptcy. Any leftovers post-bankruptcy would be used for
creditor payments as part of a Chapter 11 plan, Jones has said.
Free Speech, the Infowars parent company, filed for Chapter 11
relief last year as well in response to the state defamation
judgments against it.
Attorneys for Jones didn't immediately respond to a request for
comment on Friday, December 15, 2023.
Jones is represented by Crowe & Dunlevy PC and Jordan & Ortiz PC.
The unsecured creditors' committee is represented by Akin Gump
Strauss Hauer & Feld LLP.
About Free Speech Systems
Free Speech Systems LLC is a broadcast media production and
distribution company that provides broadcasting aural programs by
radio to the public. Free Speech Systems is a family-run business
founded by Alex Jones.
FSS is presently engaged in the business of producing and
syndicating Jones' radio and video talk shows and selling products
targeted to Jones' loyal fan base via the Internet. Today, FSS
produces Alex Jones' syndicated news/talk show (The Alex Jones
Show) from Austin, Texas, which airs via the Genesis Communications
Network on over 100 radio stations across the United States and via
the internet through websites including Infowars.com.
Due to the content of Alex Jones' shows, Jones and FSS have faced
an all-out ban of Infowars from mainstream online spaces. Shunning
from financial institutions and banning Jones and FSS from major
tech companies began in 2018.
Conspiracy theorist Alex Jones has been sued by victims' family
members over Jones' lies that the 2012 Sandy Hook Elementary School
shooting was a hoax.
Jones' InfoW LLC and affiliates, IWHealth, LLC and Prison Planet
TV, LLC, filed petitions under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. S.D. Texas Lead Case No. 22-60020) on April
18, 2022.
The Debtors agreed to the dismissal of the Chapter 11 cases in June
2022 after the Sandy Hook victim families dismissed the three
bankrupt companies from their lawsuits.
Free Speech Systems filed a voluntary petition for relief under
Subchapter V of Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex.
Case No. 22-60043) on July 29, 2022. In the petition filed by W.
Marc Schwartz, as chief restructuring officer, the Debtor reported
assets and liabilities between $50 million and $100 million.
Melissa A Haselden has been appointed as Subchapter V trustee.
Alexander E. Jones filed for personal bankruptcy under Chapter 11
of the Bankruptcy Code (Bankr. S.D. Tex. Case No. 4:22-bk-60043) on
Dec. 2, 2022, listing $1 million to $10 million in assets against
liabilities of $1 billion to $10 billion in liabilities.
Raymond William Battaglia, of Law Offices of Ray Battaglia, PLLC,
is FSS's counsel. Raymond W. Battaglia and Crowe & Dunlevy, P.C.,
led by Vickie L. Driver, Christina W. Stephenson, Shelby A. Jordan,
and Antonio Ortiz are representing Alex Jones.
FRONTIER SAND: U.S. Trustee Unable to Appoint Committee
-------------------------------------------------------
The U.S. Trustee for Region 11 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of Frontier Sand, LLC.
About Frontier Sand
Frontier Sand, LLC filed Chapter 11 petition (Bankr. W.D. Wis. Case
No. 23-12044) on Nov. 14, 2023, with as much as $50,000 in assets
and $1 million to $10 million in liabilities.
Judge Catherine J. Furay oversees the case.
Joshua D. Christianson, Esq., at Christianson & Freund, LLC is the
Debtor's legal counsel.
FTX GROUP: Court Asks IRS to Justify $24 Billion Tax Bill
---------------------------------------------------------
Steven Church and James Nani of Bloomberg News reports that a
ruling made by a bankruptcy judge Wednesday, December 13, 2023,
said that US tax officials must justify a $24 billion tax bill that
threatens to wipe out recoveries for victims of the fraud-tainted
crypto firm FTX Trading Ltd.
US Bankruptcy Judge John Dorsey sided with FTX when he scheduled a
hearing for early next year to decide how much the company may owe
the Internal Revenue Service in unpaid taxes. The company had
argued for a quicker-than-normal process to estimate the $24
billion claim.
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
billion 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.
GARCIA GRAIN: Hires W.T. Appraisal Inc. as Expert Appraiser
-----------------------------------------------------------
Garcia Grain Trading Corp. seeks approval from the U.S. Bankruptcy
Court for the Southern District of Texas to employ W.T. Appraisal,
Inc. as expert appraiser.
The firm will appraise the Debtor's property, a public grain
storage located in Progresso, Texas.
The firm will be paid $275 per hour for preparation and testimony
at the hearing.
As disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Clint W. Bumguardner
W.T. Appraisal, Inc.
1302 B. Petroleum Drive
Abilene, TX 79608
Tel: (325) 692-5039
About Garcia Grain Trading Corp.
Based in Donna, Texas, Garcia Grain Trading Corp.'s line of
business includes buying and marketing grain, dry beans, soybeans,
and inedible beans.
Garcia Grain Trading sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. S.D. Tex. Case No. 23-70028) on Feb. 17,
2023, with $10 million to $50 million in both assets and
liabilities. Octavio Garcia, chief executive officer and
president, signed the petition.
Judge Eduardo V. Rodriguez oversees the case.
David R. Langston, Esq., at Mullin Hoard & Brown, LLP, is the
Debtor's legal counsel.
The U.S. Trustee for Region 7 appointed an official committee to
represent unsecured creditors in the Debtor's Chapter 11 case.
Jordan & Ortiz, P.C. serves as the committee's legal counsel.
GAUCHO GROUP: Taps Basile Law Firm as Securities Litigation Counsel
-------------------------------------------------------------------
Gaucho Group Holdings, Inc. announced that it has retained
securities litigation attorney Mark R. Basile, Esq. and his firm,
The Basile Law Firm P.C. The services to be provided include
investigating recent activities surrounding the Company's stock
performance and any potential securities violations claims as a
result of illegal naked stock sales.
Mr. Basile, a former law professor, has engaged in litigation on
behalf of public companies for the last 12 years. In 2021, his
firm secured landmark decisions that have set the standard to save
hundreds of public companies tens of millions of dollars. His firm
has vacated several federal trial court judgments and has won every
substantive usury-based appeal it has brought within the Circuit
Courts of Appeals, reversing many prior decisions of the federal
lower courts on these issues. The firm has also published articles
and advice for companies that believe they may be victims of
securities violations, a summary of which can be found at:
https://www.thebasilelawfirm.com/blog.
Scott Mathis, CEO and Founder of Gaucho Holdings, said, "We are
pleased to welcome Mr. Basile and his law firm, The Basile Law Firm
P.C., to investigate claims of potential illegal naked short
selling of our common shares. Our stock has been suffering for
months with numerous erratic trading days. We are swimming in a
sea of sharks and it's time to go fishing. If we have any illegal
short sellers involved in trading our Company's stock we will do
our very best to uncover this activity working side by side with
Mr. Basile and regulators."
Mr. Basile noted, "I am looking forward to working with a seasoned
management team that puts its retail stockholder community near the
top of their priorities."
About Gaucho Group
Headquartered in New York, NY, Gaucho Group Holdings, Inc.'s
(gauchoholdings.com) mission has been to source and develop
opportunities in Argentina's undervalued luxury real estate and
consumer marketplace. The Company has positioned itself to take
advantage of the continued and fast growth of global e-commerce
across multiple market sectors, with the goal of becoming a leader
in diversified luxury goods and experiences in sought after
lifestyle industries and retail landscapes.
Gaucho Group reported a net loss of $21.83 million for the year
ended Dec. 31, 2022, compared to a net loss of $2.39 million for
the year ended Dec. 31, 2021. As of March 31, 2023, the Company had
$21.01 million in total assets, $8.60 million in total liabilities,
and $12.40 million in total stockholders' equity.
New York, NY-based Marcum LLP, the Company's auditor since 2013,
issued a "going concern" qualification in its report dated April
17, 2023, citing that the Company has a significant working capital
deficiency, has incurred significant losses and needs to raise
additional funds to meet its obligations and sustain its
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
GLOBALSTAR INC: Issues Warrant to Thermo to Purchase Common Shares
------------------------------------------------------------------
Globalstar, Inc. disclosed in a Form 8-K filed with the Securities
and Exchange Commission that on December 7, 2023, the Company
issued to an affiliate of James Monroe, III a warrant to purchase
10,000,000 shares of the Company's common stock (the "Warrant") at
an exercise price equal to $2.00 per share.
As previously disclosed, on February 27, 2023, an affiliate of Mr.
Monroe, the Company's Executive Chairman and controlling
stockholder ("Thermo"), entered into a Secured Guaranty with the
Company's partner under its previously disclosed Partnership
Agreements (the "Partner"), whereby Thermo agreed to guaranty
certain obligations related to the Partnership Agreements and the
related agreements, including the $252 million obligation under the
previously disclosed prepayment agreement and satellite procurement
agreement (collectively, the "Guaranteed Obligations"), and agreed
that Thermo would guaranty (the "Thermo Guaranty") the same
obligations directly in favor of the Company, subject to, among
other things, the approval of the Company's stockholders other than
Thermo, which it received on June 27, 2023. Under the Thermo
Guaranty, Thermo is obligated directly to the Company to make
payments in respect of the Guaranteed Obligations if the Company
fails to pay or otherwise does not make payment in respect of the
Guaranteed Obligations. Thermo is also required to comply with
certain covenants, which include advancing funds to the Company to
allow it to maintain compliance with its $30 million minimum
liquidity covenant and maintenance of a minimum asset level in
excess of the obligations guaranteed by Thermo.
As consideration for Thermo guaranteeing the Guaranteed
Obligations, on December 7, 2023, the Company issued to Thermo a
warrant to purchase 10,000,000 shares of the Company's common stock
(the "Warrant") at an exercise price equal to $2.00 per share.
5,000,000 warrant shares vested immediately upon effectiveness of
the Thermo Guaranty, and the remaining 5,000,000 warrant shares
vest in the event Thermo advances aggregate funds of $25,000,000 or
more to the Company or a permitted third party pursuant to the
terms of the Thermo Guaranty. The Warrant expires five (5) years
after the date of issuance. In addition, in the event Thermo is
required to pay amounts to the Company in respect of the Guaranteed
Obligations (each such amount, a "Guaranty Payment"), the Company
will issue a number of shares of the Company's common stock to
Thermo equal to (i) the amount of the Guaranty Payment divided by
(ii) the average of the volume-weighted average prices of the
common stock for the five trading days immediately preceding the
date of such Guaranty Payment.
The Company issued the Warrant in a private placement to an
"accredited investor," as that term is defined in the Securities
Act of 1933, as amended, in reliance on the exemption from
registration afforded by Section 4(a)(2) of the Securities Act. Any
issuance of common stock in respect of a Guaranty Payment would
also be made on the exemption from registration afforded by Section
4(a)(2) of the Securities Act.
On June 27, 2023, the stockholders entitled to vote on the matter
approved the entry by the Company into the Thermo Guaranty at the
Company's 2023 Annual Meeting of Stockholders. The Thermo Guaranty
became effective on December 7, 2023.
About Globalstar, Inc.
Headquartered in Covington, Louisiana, Globalstar Inc. provides
Mobile Satellite Services ("MSS") including voice and data
communications services globally via satellite. The Company offers
these services over its network of in-orbit satellites and its
active ground stations), which the Company refers to collectively
as the Globalstar System. In addition to supporting Internet of
Things ("IoT") data transmissions in a variety of applications, the
Company provides reliable connectivity in areas not served or
underserved by terrestrial wireless and wireline networks and in
circumstances where terrestrial networks are not operational due to
natural or man-made disasters.
Globalstar reported a net loss of $256.92 million in 2022, a net
loss of $112.62 million in 2022 following a net loss of $109.64
million in 2021.
* * *
Egan-Jones Ratings Company on August 9, 2023, maintained its 'CC'
foreign currency and local currency senior unsecured ratings on
debt issued by Globalstar, Inc.
GOPHER RESOURCE: S&P Affirms 'CCC+' ICR, Outlook Negative
---------------------------------------------------------
S&P Global Ratings affirmed its 'CCC+' ratings on Gopher Resource
LLC and its senior secured term loan. S&P's '3' recovery rating on
the term loan is unchanged.
The negative outlook reflects the likelihood of a lower rating over
the next 12 months if S&P envisions specific default scenarios such
as a liquidity crisis or it believes the company is likely to
default or consider distressed exchanges or offers.
Gopher faces increased refinancing risk with its senior secured
credit facilities. The company's $40 million ($10 million
outstanding as of Sept. 30, 2023) revolving credit loan is due
September 2024. Additionally, its $510 million senior secured term
loan ($472 million outstanding as of Sept. 30, 2023) is due March
2025. The company's refinancing efforts have been hampered by a
string of poor operating and financial performances due to
challenges at its production facilities at Tampa Bay, Fla. and
Eagan, Minn.
The company appears to have addressed most of the challenges at its
production facilities, which could improve its financial
performance and facilitate refinancing. Given its recent history of
unstable operations, we believe Gopher's vulnerability persists and
depends on favorable business and financial conditions to meet its
financial commitments.
S&P expects favorable contract repricing and volume increases to
drive strong results in the coming quarters, barring any unplanned
outages. Gopher recently secured a significant increase in contract
pricing on about half of its shipments, which took effect from the
beginning of the fourth quarter. Previous price increases over the
past two years were not sufficient to combat inflationary
pressures. This, coupled with production challenges, weakened its
operating performances over the past several quarters.
The company undertook a planned rebuild of its Tampa facility in
August this year that addressed most equipment issues that limited
production. Gopher also enhanced staffing at both facilities,
meeting almost 100% of staffing requirements. S&P said, "As a
result, we expect similar or slightly better volumes in fiscal 2023
as strong production and shipment volumes in the fourth quarter
compensate for lower volumes in previous quarters. Overall, we
expect its S&P Global Ratings-adjusted EBITDA to improve to $50
million-$55 million in 2023 and $70 million-$90 million in 2024,
which compares favorably with $37 million last fiscal year."
Gopher's liquidity remains tight but could materially deteriorate
within the next three to six months should refinancing efforts
delay. Gopher had total liquidity of $33.5 million as of Sept. 30,
2023, comprising $15.9 million cash on hand and $17.56 million
availability under its revolving line of credit. However, S&P
excludes the revolver availability in our liquidity calculations
given that it has less than 12 months left to expiry.
S&P said, "We expect cash funds from operations to improve in line
with our assumption of strong operating results. At the same time,
the company faces a significant call on its cash, with about $25
million of loan repayments due by Dec. 31, 2023. The company's
liquidity position could deteriorate materially within the next few
months because of upcoming maturities if it does not complete the
refinancing of the senior secured debt.
"The negative outlook reflects our view that Gopher's liquidity
position could further weaken within the next 12 months if the
company cannot refinance its senior secured facilities. Although we
expect its earnings to strengthen as the company improves
operations, refinancing prospects rely heavily on this return to
higher EBITDA over the next few quarters.
"We could lower our rating on Gopher over the next 12 months if we
envision specific default scenarios including, but not limited to,
a liquidity crisis as the term loan maturity approaches and the
likelihood it considers a debt restructuring or distressed
exchange. These default scenarios could occur following the
untimely completion of a refinancing deal with lenders."
S&P could revise its outlook to stable over the next 12 months or
upgrade if:
-- Gopher stabilizes operations and production, improving its
profitability and EBITDA generation; and/or
-- It refinances its senior secured facilities in a timely
manner.
GOURMET PLUS: Court OKs Interim Cash Collateral Access
------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of California,
Oakland Division, authorized Gourmet Plus, Inc. to use the cash
collateral of the Bank of New San Francisco on an interim basis
subject to the payment of the adequate protection payment of $4,564
on December 15, 2023 and consistent with the budget.
As previously reported by the Troubled Company Reporter, the Debtor
requires the use of cash collateral to pay for the normal operating
expenses of the business including payment of a salary to Abrahim
Aboukhalil of $7,000 per month which is less than his pre-petition
salary.
On May 29, 2018 Debtor executed a SBA Promissory Note and a
Commercial Security Agreement in favor of the SBA. The Loan was
processed and is serviced by the Bank of San Francisco. The balance
at the time of the filing of the petition, inclusive of estimated
arrears of $178,835 was $1.936 million. Abraham Aboukhalil, The
Aboukhalil Family 2002 Trust dated May 31, 2002 and Wassim
Aboukhalil have guaranteed the obligations due under the Note.
The collateral, perfected by the filing of UCC-1's encompasses all
assets: The UCC-1 filed on 6-7-2018 as Filing No. 18-7652842659
perfects the security agreement.
The UCC-1 was renewed on Jan. 6, 2023. The Bank of S.F. U.S. SBA
Loan appears to be undersecured. The balance owed the Bank of S.F.
U.S. SBA is $528,624.
A final hearing on the matter is set for December 20, 2023 at 10:30
a.m.
A copy of the motion is available at https://urlcurt.com/u?l=EsKQ55
from PacerMonitor.com.
About Gourmet Plus, Inc.
Gourmet Plus, Inc. dba Thatcher's Gourmet Popcorn is a family owned
local popcorn business that started in 1983 as a small retail store
in San Francisco. As of today, the Company's 22000 square feet
warehouse continue to supply major US stores and specialty gourmet
stores. Its popcorn is sold internationally as well such as Canada,
Japan, United Kingdom, Germany, Poland and Hong Kong.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Cal. Case No. 23-41559) on November
28, 2023. In the petition signed by Abrahim Aboukhalil, president,
the Debtor disclosed $1,132,128 in assets and $4,156,286 in
liabilities.
Judge William J. Lafferty oversees the case.
Lars Fuller, Esq., at the Fuller Law Firm PC, represents the Debtor
as legal counsel.
GREENIDGE GENERATION: Announces New Partnership and Equity Swap
---------------------------------------------------------------
Greenidge Generation Holdings Inc. announced that it has entered
into a partnership and share exchange with Infinite Reality, Inc.,
the global leader powering virtual immersive experiences serving
clients such as Warner Bros. Discovery, Inc., Vodafone Group plc
and Universal Music Group N.V. With this transformative
partnership, Greenidge is also announcing the launch of its new
service offering, GreenidgeAI.
GreenidgeAI will be the exclusive provider to iR in the United
States and Canada of specialized infrastructure, including
datacenters utilizing graphic processing units ("GPUs") to support
generative Artificial Intelligence ("AI") workstreams, including
metaverse experiences and other applications requiring high
performance computing ("HPC"). Additionally, Greenidge and iR will
explore jointly designing and building a new datacenter to enhance
iR's offerings, spearhead its growth and provide clients with
lower-cost GPU access. This effort will be powered by Greenidge's
access to low-cost power and leading engineers with experience
designing and building datacenters.
Jordan Kovler, CEO of Greenidge commented, "I am thrilled by the
opportunities that lie ahead with the launch of GreenidgeAI.
Entering the AI datacenter space has been a strategic focus of ours
and, as such, we have been thoughtful in our search for the right
long-term partner, one strategically aligned and with a skilled
team to complement Greenidge's resources. We believe that we have
found that partner in John and the entire iR team. The launch of
GreenidgeAI augments our focus on improving our capital structure
– having recently reduced over $85 million in secured debt –
and ensures that Greenidge is well-positioned for future growth to
drive shareholder value."
"We are excited to start working with Greenidge as we continue
growing our capabilities to power cinematic-quality immersive
experiences for our clients. This partnership provides us
datacenters right where the power and server generation occurs and
gives us direct access to their amazing team of engineers. The
Greenidge team will provide iR and its clients with customized
state-of-the-art datacenter solutions designed specifically for AI
and powering immersive experiences," said John Acunto, CEO of iR.
"These customized solutions are necessary as more and more
companies begin to realize that AI is transforming everything, but
AI is nothing without data. iR's entire platform allows brands and
creators to own their own data, own their own experiences and own
their customer interactions. The partnership will expedite our
growth and provide us with greater ability to innovate for our
clients and serve them the best experiences for their targeted
audiences, while removing big tech's stranglehold on the cost of
data. Outside of the current framework, we look forward to working
with Jordan and the Greenidge team on entrepreneurial ventures that
will position both companies exceptionally well for a long-lasting
relationship in other profitable business lines," added Acunto.
Partnership Details
Pursuant to the partnership between Greenidge and iR:
* Greenidge will provide infrastructure and GPU needs for iR
clients, while iR will receive a profit share on Greenidge
datacenters and preferred pricing for its own internal datacenter
needs.
* Greenidge and iR will evaluate developing a new datacenter.
* Greenidge will add a new, fast-growing service offering to
supplement its current mix of Bitcoin self-mining, hosting, EPCM
(Engineering, Procurement and Construction Management) and O&M
(Operations and Maintenance) services.
* iR has the ability to leverage Greenidge's access to
additional sources of low-cost power as needed.
* iR's brands are empowered and enabled to take control of their
data and improve performance, while reducing iR's costs and
improving profit margins.
* iR is able to better serve its clients in a fast-growing
industry and continue to accelerate audience engagement through
cinematic-quality virtual environments, while being the only player
in the space to provide brands with direct access to their
audiences and customer data.
Equity Swap Agreement
* Provides for iR obtaining shares of Greenidge valued at $8.33
per share in exchange for an equivalent amount of iR stock
reflecting a $2.5 billion valuation.
* Greenidge granting iR a one-year warrant to purchase shares of
Greenidge stock at $7.00 per share, the proceeds of which will be
used by Greenidge in connection with the development of a new
datacenter.
* iR granting Greenidge a one-year warrant to purchase an
equivalent value of iR shares, reflecting a $2.5 billion valuation
of iR, the proceeds of which will be used for general working
capital purposes.
GreenidgeAI plans to begin taking external customer orders in 2024
as the Company grows beyond the partnership with iR and is
currently in the process of designing and planning the buildout of
AI datacenters, in conjunction with securing agreements for the
purchase of NVIDIA H100 and L40 GPUs.
About Greenidge Generation
Greenidge Generation Holdings Inc. (NASDAQ: GREE) is a vertically
integrated power generation company, focusing on cryptocurrency
mining, infrastructure development, engineering, procurement,
construction management, operations and maintenance of sites.
Dallas, Texas-based Armanino LLP, the Company's auditor since 2021,
issued a "going concern" qualification in its report dated March
31, 2023, citing that the Company incurred a loss from operations
and generated negative cash flows from operations during the year
ended Dec. 31, 2022. These conditions raise substantial doubt
about the Company's ability to continue as a going concern.
GREGORY TRUCKING: Case Summary & Eight Unsecured Creditors
----------------------------------------------------------
Debtor: Gregory Trucking Company, Inc.
147 Lumber Dr.
Harmony, NC 28634
Chapter 11 Petition Date: December 18, 2023
Court: United States Bankruptcy Court
Western District of North Carolina
Case No.: 23-50352
Judge: Hon. Laura T. Beyer
Debtor's Counsel: R. Keith Johnson, Esq.
LAW OFFICES OF R. KEITH JOHNSON, P.A.
1275 S. Hwy. 16
Stanley, NC 28164
Tel: 704-827-4200
Fax: 704-827-4477
Email: kjparalegal@bellsouth.net
Total Assets: $0
Total Liabilities: $2,169,397
The petition was signed by Cecil S. Gregory as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's eight unsecured creditors is available for
free at PacerMonitor.com at:
https://www.pacermonitor.com/view/UF5E5LQ/Gregory_Trucking_Company_Inc__ncwbke-23-50352__0001.0.pdf?mcid=tGE4TAMA
GROWLIFE INC: Taps M&K CPAS as New Auditor
------------------------------------------
GrowLife, Inc. disclosed in a Form 8-K Report filed with the
Securities and Exchange Commission that on November 29, 2023, the
Company received written notification from Marcias Gini & O'Connell
LLP of their decision to not stand for re-appointment as the
Company's independent registered public accounting firm as of
December 31, 2023.
MGO served as the Company's independent registered public
accounting firm since October 14, 2021.
During the Company's fiscal years ending December 31, 2021 and2022
and through fiscal quarter ended March 31, 2023 (i) there were no
"disagreements" (as defined in Item 304(a)(1)(iv) of Regulation S-
K under the Securities Exchange Act of 1934, as amended (the
"Exchange Act")) between the Company and MGO on any matter of
accounting principles or practices, financial statement disclosure,
or auditing scope or procedure, which disagreements, if not
resolved to MGO's satisfaction, would have caused MGO to make
reference to the subject matter of such disagreements in its
reports on the Company's consolidated financial statements for such
years, and (ii) there were no "reportable events" (as defined in
Item 304(a)(1)(v) of Regulation S-K under the Exchange Act) other
than the material weaknesses in internal control over financial
reporting identified for the years ended December 31, 2021 and 2022
and quarter ended March 31, 2023 related to: (i) audit committee
makeup, and (ii) accounting personnel and reporting governance of
complex contractual terms and obligations.
The Company has engaged the services of M&K CPAS PLLC and as the
Company's new independent registered public accounting firm to
audit the Company's consolidated financial statements for the year
then ended December 31, 2023. The Company's Audit Committee
approved the appointment of M&K on December 5, 2023.
During each of the Company's two most recent fiscal years and
through the date of this report, (a) the Company has not engaged
M&K as either the principal accountant to audit the Company's
financial statements, or as an independent accountant to audit a
significant subsidiary of the Company and on whom the principal
accountant is expected to express reliance in its report; and (b)
the Company or someone on its behalf did not consult with M&K with
respect to (i) either: the application of accounting principles to
a specified transaction, either completed or proposed; or the type
of audit opinion that might be rendered on the Company's financial
statements, or (ii) any other matter that was either the subject of
a disagreement or a reportable event as set forth in Items
304(a)(1)(iv) and (v) of Regulation S-K.
About GrowLife
Founded in 2012, GrowLife, Inc. (PHOT) --
http://www.shopgrowlife.com/-- is the owner of Bridgetown
Mushrooms, acting as its parent Company. Founded in 2018 in
Portland Oregon, Bridgetown Mushrooms grows a variety of functional
and gourmet mushrooms which are in turn sold through multiple
commercial and consumer sales channels. The company also develops
and markets mushroom based products nationwide as well as
manufactures and sells Mycology supplies to meet the demand for
commercial mushroom farmers across the United States.
GrowLife reported a net loss of $4.48 million for the year ended
Dec. 31, 2022, compared to a net loss of $5.47 million for the year
ended Dec. 31, 2021. As of Dec. 31, 2022, the Company had $254,208
in total assets, $8.66 million in total current liabilities, and a
total stockholders' deficit of $8.41 million.
Irvine, CA-based Macias Gini & O'Connell LLP, the Company's auditor
since 2021, issued a "going concern" qualification in its report
dated June 13, 2023, citing that the Company has suffered recurring
losses from operations, incurred negative cash flows from operating
activities, and has an accumulated deficit that raise substantial
doubt about its ability to continue as a going concern.
GUARDIAN BASEBALL: Hires Shymanski & Company as Accountant
----------------------------------------------------------
Guardian Baseball, LLC seeks approval from the U.S. Bankruptcy
Court for the District of Kentucky to employ Harding Shymanski &
Company, P.S.C. as accountant.
The firm will provide these services:
a. assist the Debtor in its financial planning;
b. advise the Debtor with respect to its financial reporting
obligations; and
c. prepare required tax returns for filing with appropriate
governmental authorities.
The firm will be paid at the rates of $65 to $385 per hour.
The Debtor owed the firm $2,275 prior commencement of the
bankruptcy case.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Derek Sizemore, a vice president at Harding Shymanski & Company,
P.S.C., disclosed in a court filing that the firm is a
"disinterested person" as the term is defined in Section 101(14) of
the Bankruptcy Code.
The firm can be reached at:
Derek Sizemore
Harding Shymanski & Company, P.S.C
101 S 5th Street, Suite 1700
Louisville, KY 40202
Tel: (502) 882-8456
Fax: (502) 581-1653
Email: dsizemore@hsccpa.com
About Guardian Baseball, LLC
Guardian Baseball, LLC is a manufacturer and retailer of sporting
goods and equipment. The company is based in Louisville, Ky.
Guardian Baseball sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. W.D. Ky. Case No. 23-31813) on Aug. 3,
2023, with $500,001 to $1 million in assets and $1 million to $10
million in liabilities. Zev Bernard, chief operating officer,
signed the petition.
Charity S. Bird, Esq., at Kaplan Johnson Abate & Bird LLP,
represents the Debtor as legal counsel.
H & H FAST: Case Summary & Seven Unsecured Creditors
----------------------------------------------------
Debtor: H & H Fast Properties Inc.
85717-25 S. State Street
Chicago, IL 60619
Chapter 11 Petition Date: December 18, 2023
Court: United States Bankruptcy Court
Northern District of Illinois
Case No.: 23-16874
Judge: Hon. Jacqueline P. Cox
Debtor's Counsel: Paul M. Bach, Esq.
BACH LAW OFFICES
P.O. Box 1285
Northbrook, IL 60065
Email: paul@bachoffices.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Amanda Henderson as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's seven unsecured creditors is available for
free at PacerMonitor.com at:
https://www.pacermonitor.com/view/AJDVTOY/H__H_Fast_Properties_Inc__ilnbke-23-16874__0001.0.pdf?mcid=tGE4TAMA
HOWARD INTERVENTION: Court OKs Cash Collateral Access Thru Jan 2024
-------------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois,
Eastern Division, authorized Howard Intervention Center, Inc. to
use cash collateral on an interim basis, in accordance with the
budget, with a 10% variance, through January 9, 2024.
As adequate protection to the U.S. Small Business Administration,
Headway Capital, LLC, Kapitus, LLC, The Fundworks, LLC, Emerald
Group Holdings LLC dba Vitalcap and The Avanza Group, LLC and any
other lien claimants, for the use of its Collateral or cash
collateral, the Lien Claimants are granted post-petition
replacement liens, to the extent and with the same priority as the
Lien Claimants held pre-petition, in and to any presently existing
or hereafter acquired cash collateral.
A continued hearing on the matter is set for January 8, 2024 at
9:30 a.m.
A copy of the order is available at https://urlcurt.com/u?l=pZtnWW
from PacerMonitor.com.
About Howard Intervention Center, Inc.
Howard Intervention Center, Inc. sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 23-16312) on
December 5, 2023. In the petition signed by Cara K. Wilson,
president, the Debtor disclosed $369,399 in assets and $1,085,759
in liabilities.
Judge Benjamin Goldgar oversees the case.
Gregory K. Stern, Esq., at GREGORY K. STERN, P.C., represents the
Debtor as legal counsel.
IMEDIA BRANDS: Trustee Urges Court to Reject Chapter 11 Plan
------------------------------------------------------------
The U.S. Trustee's Office is asking a Delaware bankruptcy judge
Thursday to reject portions of home shopping business iMedia's
proposed Chapter 11 liquidation plan, alleging it imposes
unacceptable conditions on the payment of trustee fees.
U.S. Trustee Andrew R. Vara says the Court should deny confirmation
because the Combined Plan includes inappropriate language regarding
the obligation to properly report disbursements and to pay
statutory fees arising under 28 U.S.C. Sec. 1930 to the U.S.
Trustee.
"The Combined Plan cannot be confirmed in its present form because
Art. IV, Section D as currently drafted violates 28 U.S.C. Sec.
1930(a)(6). Specifically, the Combined Plan attempts to define
what transfers will qualify as disbursements upon which these
parties will pay U.S. Trustee Fees. In effect, the Debtors are
seeking to pre-determine what disbursements, distributions or
expenditures will qualify for purposes of calculating the
statutorily-mandated fee that must be paid in the debtor's case(s)
every quarter. Such a result is contrary to the language and intent
of section 1930(a)(6), as well as the weight of case law
interpreting section 1930(a)(6). For the following reasons,
confirmation of the Plan should be denied absent satisfactory
revisions," the U.S. Trustee tells the Court.
About iMedia Brands
iMedia Brands, Inc., is an interactive, global media company that
offers, manages, and markets merchandise, including men's and
women's accessories and apparel, under owned and third-party brands
through various entertainment, e-commerce, and digital service
platforms.
iMedia Brands and 11 of its affiliates filed for bankruptcy
protection on June 28, 2023 (Bankr. D. Del., Lead Case No.
23-10852). The petitions were signed by James Alt as chief
transformation officer.
The Debtors reported as of April 29, 2023, total assets of
$272,596,462 and total liabilities of $373,713,748.
Judge Karen B. Owens oversees the case.
The Debtors tapped Ropes & Gray, LLP and Pachulski Stang Ziehl &
Jones, LLP as bankruptcy counsels; Huron Consulting Services, LLC
as financial advisor; Lincoln Partners Advisors, LLC, as investment
banker; and Stretto, Inc. as notice, claims and administrative
agent.
The U.S. Trustee for Regions 3 and 9 appointed an official
committee to represent unsecured creditors in the Debtors' Chapter
11 cases. The committee tapped McDermott Will & Emery, LLP as
legal counsel and AlixPartners, LLP as financial advisor.
INVESTMENT PROPERTIES: U.S. Trustee Unable to Appoint Committee
---------------------------------------------------------------
The U.S. Trustee for Region 15 disclosed in a court filing that no
official committee of unsecured creditors has been appointed in the
Chapter 11 case of Investment Properties Corp.
About Investment Properties Corp.
Investment Properties Corp. filed Chapter 11 petition (Bankr. D.
Hawaii Case No. 23-00934) on Nov. 17, 2023, with $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 legal counsel.
JACON LLC: Court OKs Cash Collateral Access Thru Feb 2024
---------------------------------------------------------
The U.S. Bankruptcy Court for the District of Minnesota authorized
Jacon LLC to use cash collateral in accordance with its agreement
with Platinum Bank, through February 2, 2024.
As previously reported by the Troubled Company Reporter, Platinum
Bank - UCC Financing Statement filed on May 18, 2016, June 14,
2021, September 24, 2021, and April 29, 2022, Filing Numbers:
888850700027, 1239693100023, 1258171100020 and 1311732400020, with
the Minnesota Secretary of State securing a lien on all assets of
the Debtor, including cash and receivables. The Debtor owes
approximately $565,174.
United States Small Business Administration - UCC Financing
Statement filed on May 23, 2020, Filing Number: 1160408103162, with
the Minnesota Secretary of State securing a lien on all assets of
the Debtor, including cash and receivables. The Debtor owes
approximately $3.299 million.
A copy of the order is available at https://urlcurt.com/u?l=Xw6zHc
from PacerMonitor.com.
About Jacon LLC
Jacon LLC is a demolition, excavating, and utilities contractor in
the St. Paul/Minneapolis area. The Debtor sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Minn. Case No.
23-31873) on September 12, 2023. In the petition signed by Jason
Jacobsen, president, the Debtor disclosed up to $10 million in both
assets and liabilities.
William J. Fisher oversees the case.
John D. Lamey III, Esq., at Lamey Law Firm, P.A., represents the
Debtor as legal counsel.
JEFFERSON LA BREA: Court OKs Cash Collateral Access Thru March 2024
-------------------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California,
Los Angeles Division, authorized Jefferson La Brea D&J Properties
LLC to continue using cash collateral on a final basis in
accordance with the budget, with a 20% variance, through March 31,
2024.
As previously reported by the Troubled Company Reporter, the cash
collateral consists of rents collected by the Debtor from leasing a
commercial property located at 5112-5118 W. Jefferson Blvd., and
3409-3421 S. La Brea Avenue, in Los Angeles. The entities that have
recorded deeds of trust on the Real Property and may assert a
security interest in the rents are Mega Bank, JBM Family Trust, and
Tony Lewis.
The Debtor requires the use of cash collateral for the operating
expenses of the Real Property and other administrative expenses of
the Debtor. The Debtor is informed the Real Property is worth
approximately $12 million.
The Court said each secured creditor of record will receive, as
adequate protection, a replacement lien on postpetition collateral
for any diminution in the secured creditor's collateral as of the
Petition Date arising from the Debtor's use of such collateral but
only to the same extent, priority, applicability and validity as
the prepetition lien held by the secured creditor.
As further adequate protection for secured creditor Mega Bank, the
Debtor will make monthly cash payments to Mega Bank in the amount
of $23,491 commencing within 10 day of entry of the Order, and then
on or before the 10th day of each month after the entry of the
Order. Mega Bank may apply each cash payment received from the
Debtor as detailed in the promissory note made by the Debtor in
favor of Mega Bank dated June 16, 2014, Loan No. 120140571.
A copy of the order is available at https://urlcurt.com/u?l=RbNiVb
from PacerMonitor.com.
About Jefferson La Brea D&J Properties LLC
Jefferson La Brea D&J Properties LLC leases a commercial property
located at 5112-5118 W. Jefferson Blvd., and 3409-3421 S. La Brea
Avenue, in Los Angeles.
Jefferson La Brea D&J Properties LLC sought protection under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No.
22-14481) on August 17, 2022. The Debtor considers itself a Single
Asset Real Estate (as defined in 11 U.S.C. Sec. 101(51B)).
In the petition filed by Jason E. Upchurch, as manager, the Debtor
estimated assets between $10 million and $50 million and estimated
liabilities between $1 million and $10 million.
Judge Vincent P. Zurzolo oversees the case.
The Debtor is represented by David B. Shemano, Esq., at ShemanoLaw.
KOFC LTD: Court OKs Interim Cash Collateral Access
--------------------------------------------------
The U.S. Bankruptcy Court for the Western District of Texas, San
Antonio Division, authorized KOFC, Ltd. to use the cash collateral
of the Texas Comptroller of Public Account, on an interim basis, in
accordance with the budget, with a 10% variance.
The Debtor requires the use of cash collateral to pay ordinary
post-petition operating expenses including taxes, rental/note
payments, insurance, payroll, payroll expenses, utility charges and
the costs of supplies used in the operation of the business as set
forth in the budget.
The court said the Texas sales tax trust funds are not a part of
the Debtor's cash, proceeds or accounts receivable, they do not
form a part of any other secured creditor's collateral, if any, and
they may not be used by the Debtor in its operations. The Debtor
will not utilize Texas sales tax trust funds for any purpose other
than remittance to the Comptroller.
Any Texas sales taxes collected by the Debtor post-petition are not
property of the estate, but instead remain property of the
Comptroller until paid. Payment of the post-petition taxes is
mandatory under 28 U.S.C. Section 959(b) and 960. The Comptroller
does not consent to the use of its post-petition sales tax trust
funds for any purpose other than remitting to the Comptroller.
As adequate protection, the Comptroller is granted replacement
liens on all the Debtor's property.
The Debtor will make monthly adequate protection payments to the
Comptroller in the amount of $3,000 beginning on November 15, 2023,
and on the 15th day of each month thereafter until the Court enters
a final cash collateral order. All payments will apply first to
interest (at the statutory rate of 8.5%) on the Comptroller's
prepetition claims and then any excess to the principal amount of
the tax claims, starting with the oldest period of liability
first.
A copy of the order is available at https://urlcurt.com/u?l=wyFb6j
from PacerMonitor.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.
KORE WIRELESS: S&P Withdraws 'B-' Issuer Credit Rating
------------------------------------------------------
S&P Global Ratings withdrew all ratings on KORE Wireless Group Inc.
at the issuer's request. This includes its 'B-' issuer credit
rating on the company and its 'B' issue-level ratings on the
company's first-lien term loan and revolving credit facility. Kore
Wireless' existing debt was repaid following a refinancing
transaction. S&P's rating outlook on the company was stable at the
time of the withdrawal.
LA MOUNT GROUP: Seeks Cash Collateral Access
--------------------------------------------
La Mount Group, LLC asks the U.S. Bankruptcy Court for the Southern
District of Ohio, Western Division, for authority to use cash
collateral and provide adequate protection.
The Debtor requires the use of cash collateral to provide working
capital, pay present operating expenses, and to pay vendors and
other key constituencies during the Chapter 11 Subchapter V with
confidence that the Debtor has sufficient resources to meet its
financial obligations in a manner that will maximize the return on
the Debtor's assets.
Newtek Small Business Finance, LLC assert an interest in the
Debtor's cash collateral.
Insomuch as the cash collateral in the case is $ 34,952, the Debtor
says the following liens have no value and no adequate protection
is necessary:
1. Advantage Leasing Corporation
2. US Small Business Administration
3. FinWise Bank (Mulligan)
4. IDEA 247, Inc.
The cash collateral consists of $ 30,398 in cash in the bank, $
1,500 in cash, and $3,055 in cash value life insurance totaling $
34,952.
Since Newtek is the first filed UCC financing statement against the
cash collateral, which has a lapse date of May 24, 2024, it stands
as first in line. The total owed to Newtek on this loan is
appro9ximately $ 672,760. The total amount of cash collateral of
the Debtor is $ 34,952.
Therefore, the junior liens on cash collateral have no value and
adequate protection is not required for any creditor except
Newtek.
To the best of Debtors knowledge, the first lien is Newtek, who is
owed approximately $672,760, is in excess of the value of the
assets. The Debtor proposes to pay $1,000 per month to the Senior
Secured Lender as adequate protection in addition to guaranteeing a
continuing lien on the assets and any account receivables. The
other secured creditors with UCC filings will not receive any
adequate protection payment since their liens have no value.
A copy of the motion is available at https://urlcurt.com/u?l=RykchZ
from PacerMonitor.com.
About La Mount Group, LLC
La Mount Group, LLC d/b/a Culvers of Hamilton is a franchisee of
Culver's American restaurant.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Ohio Case No. 23-12409) on December
11, 2023. In the petition signed by Joshua Hankins, member, the
Debtor disclosed $163,242 in assets and $1,675,066 in liabilities.
Eric W. Goering, Esq., at Goering & Goering, represents the Debtor
as legal counsel.
LIFTUP COMMUNITIES: Hires Benjamin Legal Services as Counsel
------------------------------------------------------------
Liftup Communities LLC (Chicago) seeks approval from the U.S.
Bankruptcy Court for the Northern District of Illinois to employ
Benjamin Legal Services as counsel.
The firm's services include:
a) assisting and advising the debtor with respect to the
debtor's legal status as a debtor and the powers, duties, rights
and obligations as debtor in possession in the continued management
and operation business and of its property and affairs relative to
the administration of this proceeding;
b) representing the debtor before bankruptcy court and advising
the debtor on all pending litigations, hearings, motions, and of
the decisions of the bankruptcy court;
c) reviewing and analyzing all applications, orders, and motions
filed with the bankruptcy court by third parties in this proceeding
and advising the Debtor thereon;
d) attending all meetings conducted pursuant to section 341(a)
of the bankruptcy code and representing the debtor at all
examinations and Debtor interviews;
e) communicating and negotiating with representatives of
creditors and other parties in interest;
f) preparing all necessary applications, reports, complaints,
motions, orders, and other legal papers and documents as may be
necessary and to appear before the court regarding such legal
matters and to seek relief in accordance with said court documents
together with the preparation of the necessary orders thereto;
g) defending the Estate against actions that may be instituted
against the debtor's estate in these proceedings, and to litigate
matters relating to said proceedings in accordance with the
attorney client retainer agreement executed between the Parties;
h) examining and taking all actions necessary to protect and
preserve the estate, including prosecution of such claims or
actions and litigation as may be necessary or appropriate on behalf
of the estate and to support positions taken by the debtor, and
preparing witnesses and reviewing documents in this regard, when
applicable;
i) examining and resolving claims filed against the estate and
to advise and consult with the debtor regarding claims that may be
inappropriately or in error filed and to prepare and litigate
objections thereto when appropriate;
j) conferring with all other professionals, including any
accountants and consultants retained by the debtor and by any other
party in interest;
k) assisting the debtor in its negotiations with creditors (and
any creditor committees) or third parties concerning the terms of
any proposed plan of reorganization;
l) assisting the debtor in the formulation, preparation,
implementation, and consummation of a plan of reorganization and
disclosure statement, if necessary or appropriate, and all related
agreements and documents, and to take any actions necessary to
achieve confirmation of such plan and disclosure statement;
m) performing all other legal services required of the debtor,
be in the interest of the debtor and the estate, or incident to
these proceedings and to provide such legal advice to the debtor as
is necessary and in connection with this chapter 11 Case; and
n) advising the debtor in connection with any potential sale of
assets or representation of the debtor in connection with obtaining
post-petition financing if required or needed.
The firm will be paid at these rates:
The firm received from the Debtor a retainer of $3,000, including
the filing fee of $1,738.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
J. Kevin Benjamin, Esq., a partner at Benjamin Legal Services PLC,
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:
J. Kevin Benjamin, Esq.
Theresa S. Benjamin, Esq.
Benjamin Legal Services PLC
1016 West Jackson Blvd.
Chicago, IL 60607-2914
Tel: (312) 853-3100
Email: attorneys@benjaminlaw.com
About Liftup Communities LLC (Chicago)
Liftup Communities, LLC (Chicago) is primarily engaged in renting
and leasing real estate properties. The company is based in
Chicago, Ill.
Liftup Communities filed a petition under Chapter 11, Subchapter V
of the Bankruptcy Code (Bankr. N.D. Ill. Case No. 23-14768) on Nov.
1, 2023, with $2,207,288 in assets and $895,450 in liabilities.
Crystal Wilburn, manager, signed the petition.
Judge Timothy A. Barnes oversees the case.
J. Kevin Benjamin, Esq., at Benjamin Legal Services represents the
Debtor as bankruptcy counsel.
LOJERKY INC: Unsecureds Will Get 100% of Claims in Sale Plan
------------------------------------------------------------
Lojerky, Inc., filed with the U.S. Bankruptcy Court for the
Northern District of California a Disclosure Statement describing
Plan of Reorganization dated December 12, 2023.
The Debtor filed the instant case to stop the attempted foreclosure
of its sole asset, the real property located at 406 Redwood
Highway, Cave Junction, OR 97523 (the "Property").
The property has a restaurant on it, as well as a 60-room hotel.
The restaurant is in good shape and has no issues. There are no
mortgages on the Property, only a huge City fine from which the
City sought to foreclose on the Property.
Through the subject Chapter 11, the Debtor seeks to sell the
Property to utilize its significant equity to pay off all bona fide
creditors. In the event there is no reasonable offer, the Debtor's
owner may consider selling other properties belonging to the
Debtor's owner in lieu of selling the Property to satisfy all
creditor claims. The Debtor's owner is a local family and has other
real estate holdings locally in the Bay Area. The Debtor's owner
prefers not to be forced to sell their other properties but will do
so if necessary to save the Property if no reasonable buyer
appears.
This Plan of Reorganization proposes to pay creditors of the Debtor
from the sale of Debtor's Property.
This Plan provides for 2 classes of secured claims; 1 class of
unsecured claims; and 1 class of equity security holders. Unsecured
creditors holding allowed claims will receive distributions which
the Proponent of this Plan has valued at 100 cents on the dollar.
This Plan also provides for the payment of administrative and
priority claims in full upon the sale of Debtor's Property.
Class 2 consists of General Unsecured Claims. General Unsecured
Creditors include Cristina Seung ($1,500.00); Franchise Tax Board
($800.00); and Internal Revenue Service ($741.94). Class 3 shall be
paid $3,041.94 upon sale of the Property. Class 3 creditors are
expected to be paid 100% of their claims without interest. This
Class is impaired.
Class 4 consists of Equity Security Holders of the Debtor. Class 4
shall be entitled to the net funds after sale and after ordinary
and necessary expenses and plan payments.
Debtor will sell the Property asset by June 1, 2024, paying off all
claims in the case from the proceeds of the sale. Debtor will file
a motion for approval of any such sale on 28-days' notice to lien
holders. Unless the court orders otherwise, a lienholder whose lien
is not in bona fide dispute may credit bid the amount of its lien
at the sale.
A full-text copy of the Disclosure Statement dated December 12,
2023 is available at https://urlcurt.com/u?l=ioqPhD from
PacerMonitor.com at no charge.
Attorneys for Debtor:
Arasto Farsad, Esq.
Nancy Weng, Esq.
FARSAD LAW OFFICE, P.C.
1625 The Alameda, Suite 525
San Jose, CA 95126
Tel: (408) 641-9966
Fax: (408) 866-7334
Email: farsadlaw1@gmail.com
nancy@farsadlaw.com
About Lojerky, Inc.
Lojerky, Inc., is the owner of the real property located at 406
Redwood Highway, Cave Junction, OR 97523 (the "Property").
The Debtor filed a Chapter 11 bankruptcy petition (Bankr. N.D. Cal.
Case No. 23-51058) on September 17, 2023, disclosing under $1
million in both assets and liabilities.
The Debtor is represented by Arasto Farsad, Esq., of FARSAD LAW
OFFICE, P.C.
M & T ELEVATIONS: Hires Quilling Selander as Legal Counsel
----------------------------------------------------------
M & T Elevations LLC seeks approval from the U.S. Bankruptcy Court
for the Northern District of Texas to employ Quilling, Selander,
Lownds, Winslett & Moser, P.C. as counsel.
The firm's services include:
(a) furnishing legal advice to the Debtor with regard to its
powers, duties and responsibilities as a debtor-in-possession and
the continued management of its affairs and assets under chapter
11;
(b) preparing for and on behalf of the Debtor, all necessary
applications, motions, answers, orders, reports and other legal
papers;
(c) preparing a disclosure statement and plan of reorganization
and other services incident thereto;
(d) investigating and prosecuting preference and fraudulent
transfers actions arising under the avoidance powers of the
Bankruptcy Code; and
(e) performing all other legal services for the Debtor which may
be necessary herein.
The firm's hourly rates are as follows:
Attorney $300 to $425 per hour
Associates $225 to $300 per hour
Paralegals $100 to $150 per hour
The Debtor paid the firm $3,250 as initial retainer fee.
John Paul Stanford, Esq., a shareholder of the firm, disclosed in a
court filing that his firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
John Paul Stanford, Esq.
Quilling, Selander, Lownds, Winslett & Moser, P.C.
2001 Bryan Street, Suite 1800
Dallas, TX 75201
Tel: (214) 871-2100
Fax: (214) 871-2111
Email: jstanford@qslwm.com
About M & T Elevations LLC
M & T Elevations LLC, filed a Chapter 11 bankruptcy petition
(Bankr. N.D. Tex. Case No. 23-32858) on December 4, 2023,
disclosing under $1 million in both assets and liabilities. The
Debtor is represented by QUILLING, SELANDER, LOWNDS, WINSLETT &
MOSER, P.C.
MAGENTA BUYER: S&P Downgrades ICR to 'CCC+', Outlook Stable
-----------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Magenta
Buyer LLC's (d/b/a Trellix and Skyhigh Security) to 'CCC+' from
'B-', its issue-level rating on its first-lien credit facility to
'CCC+' from 'B-', and its issue-level rating on its second-lien
term loan to 'CCC-' from 'CCC'. S&P's '3' recovery rating on the
first-lien facility and '6' recovery rating on the second-lien loan
are unchanged.
S&P said, "The stable outlook reflects our view that, despite its
negative FOCF generation in 2023, the company maintains adequate
liquidity and full access to its revolving credit facility. We
expect Magenta's ongoing restructuring will expand its EBITDA
margins and improve its FOCF to debt to the 0% to -1% range in
fiscal year 2024.
"Continued negative FOCF generation, budget misses and elevated
leverage drive the rating action. We expect Magenta Buyer's revenue
will decline by 11%-12% in fiscal year 2023, which will cause its
S&P Global Ratings-adjusted leverage to rise to about 10x and its
FOCF to debt to weaken to about -4%. Although we expect the
company's revenue will stabilize in fiscal year 2024 and project it
will expand its S&P Global Ratings-adjusted EBITDA margins to the
low-to-mid 30% area, enabling it to generate breakeven to modestly
negative FOCF, we have limited confidence in our projections."
Magenta missed its budget targets in 2022 and 2023 despite the
expansion of the overall cybersecurity end market. The company is
also transitioned certain of its products to annual contracts from
multi-year durations, which has resulted in reduction in deferred
revenues (although this headwind is largely behind them). The
company is also transitioning its products to annual contracts,
which has led to a reduction in its deferred revenues (although
this transition is mostly complete). We would look for Magenta to
reverse in the decline in its deferred revenue before considering a
positive rating action."
Both Trellix and Skyhigh Security experienced declines in their
recurring and non-recurring revenue throughout 2023. The company's
recurring revenue fell by the high-single digit percent area in the
first nine months of 2023, while its non-recurring revenue dropped
about 25% over the same period. Normalizing for foreign-exchange
(FX) headwinds, Ma'enta's recurring revenue declined by about the
mid-single digit percent area. While the company faced system
integration issues during the first half of the year, the weakness
in its revenue in the second half seems to have stemmed from the
macroeconomic slowdown and the elongation in its sales cycles.
Nonetheless, the company has indicated that headwinds due to the
shortening of contract length is largely behind them. Approximately
80% of the company's revenue is recurring and its customer
retention rate is stable at 96%, which reflects its minimal
customer losses. These are leading indicators that point to
business stability in 2024, though the forecast for its
non-recurring revenue remains uncertain.
S&P said, "Management's aggressive cost cutting initiatives will
help it improve its profitability, though we still project it will
generate negative FOCF in fiscal year 2024. Given its ongoing
revenue softness, the company implemented cost-reduction actions
during fiscal year 2023 to improve its profitability. These
cost-cutting measures included a combination of headcount
reductions, facility rationalization, and some cuts in its customer
support and marketing. We project that these initiatives will
improve Magenta's EBITDA by approximately $150 million in fiscal
year 2024, which will improve its leverage below 8x. We also expect
the quality of the company's EBITDA will improve, with fewer
addbacks due to lower restructuring costs next year. This will
likely expand Magenta's S&P Global Ratings-adjusted EBITDA margin
to the low- to mid-30% area in fiscal year 2024. Nonetheless, we
continue to expect the company will face annual cash interest
expense of greater than $500 million, about $50 million of capital
expenditure (capex), some working capital usage, and about $35
million of annual debt amortization during fiscal year 2024. Based
on these assumptions, we project it will generate negative cash
flow after debt service in 2024.
"The stable outlook reflects our belief that, despite its negative
FOCF generation in 2023, the company maintains adequate liquidity
and full access to its revolving credit facility. We expect
Magenta's ongoing restructuring will expand its EBITDA margins and
improve its FOCF to debt to the 0% to -1% range in fiscal year
2024.
"Governance factors are a moderately negative consideration in our
credit rating analysis of Magenta, as is the case for most rated
entities owned by private-equity sponsors. We believe the company's
highly leveraged financial risk profile points to corporate
decision-making that prioritizes the interests of its controlling
owners. This also reflects private-equity owners' generally finite
holding periods and focus on maximizing shareholder returns."
MAGNO LLC: Seeks to Hire Corbett Accounting as Accountant
---------------------------------------------------------
Magno, LLC seeks approval from the U.S. Bankruptcy Court for the
District of Oregon to employ Corbett Accounting Services LLC as
accountant.
The firm's services include:
a. prepare tax return and provide advice on accounting, payroll,
and tax issues;
b. assist the Debtor with accounting for and preparation of
reports, schedules of assets and liabilities, statement of
financial affairs, and other bankruptcy accounting issues or
analysis, as the Debtor may require; and
c. assist the Debtor in such accounting and tax matters as the
Debtor may require.
The firm will be paid at the rate of $95 per hour.
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
As disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Jeri L. Corbett
Corbett Accounting Services LLC
20226 Hoodview Ave.
West Linn, OR 97068
About Magno, LLC
The Debtor is primarily engaged in renting and leasing real estate
properties.
Magno, L.L.C. in Portland, OR, filed its voluntary petition for
Chapter 11 protection (Bankr. D. Or. Case No. 23-32834) on December
6, 2023, listing as much as $1 million to $10 million in both
assets and liabilities. Richard S. Humphries as manager, signed the
petition.
Judge Teresa H. Pearson oversees the case.
TONKON TORP LLP serve as the Debtor's legal counsel.
MAGNO LLC: Seeks to Hire Tonkop Torp LLP as Counsel
---------------------------------------------------
Magno, LLC seeks approval from the U.S. Bankruptcy Court for the
District of Oregon to employ Tonkop Torp LLP as counsel.
The firm will provide these services:
a. advise the Debtor of its rights, powers, and duties as a
debtor-in-possession continuing to operate and manage its business
and property under Chapter 11 of the bankruptcy code;
b. take all actions necessary to protect and preserve the
Debtor's bankruptcy estate, including the prosecution of actions on
the Debtor's behalf, the defense of any action commenced against
the Debtor, negotiations concerning all litigation in which the
Debtor is involved, objections to claims filed against the Debtor
in the bankruptcy case, and the compromise or settlement of
claims;
c. prepare necessary legal papers;
d. advise and assist in the negotiation and documentation of,
financing agreements, debt and cash collateral orders, and related
transactions;
e. review the nature and validity of any liens asserted against
the Debtor's property and advise the Debtor concerning
enforceability of such liens;
f. advise the Debtor regarding its ability to initiate actions
to collect and recover property for the benefit of the estate,
potential property dispositions, and executory contract and
unexpired lease assumptions, assignments, and rejections, and lease
restructuring and recharacterizations;
g. negotiate with creditors concerning a Chapter 11 plan,
prepare the plan, disclosure statement, and related documents; and
take steps necessary to confirm and implement the plan, including
negotiations for financing the plan;
h. provide such other legal advice or services, including
immigration advice or services, as may be required in connection
with the Chapter 11 case; and
i. provide such other legal advice or services as may be
required in connection with the Chapter 11 caes.
The firm will be paid at these rates:
Timothy J. Conway, Partner $695 per hour
James Hein, Partner $535 per hour
Ava Schoen, Partner $510 per hour
Spencer Fisher, Paralegal $290 per hour
Allan Patterson, Paralegal $290 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Ava Schoen, Esq., a partner at Tonkop Torp LLP, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Ava Schoen, Esq.
Timothy J. Conway, Esq.
Tonkop Torp LLP
888 SW Fifth Avenue, Suite 1600
Portland, OR 97204-2099
Tel: (503) 221-1440
Fax: (503) 274-8779
Email: ava.schoen@tonkon.com
About Magno, LLC
The Debtor is primarily engaged in renting and leasing real estate
properties.
Magno, L.L.C. in Portland, OR, filed its voluntary petition for
Chapter 11 protection (Bankr. D. Or. Case No. 23-32834) on December
6, 2023, listing as much as $1 million to $10 million in both
assets and liabilities. Richard S. Humphries as manager, signed the
petition.
Judge Teresa H. Pearson oversees the case.
TONKON TORP LLP serve as the Debtor's legal counsel.
MALLINCKRODT PLC: Latham & Watkins Bills $5.7M in 2nd Bankruptcy
----------------------------------------------------------------
Evan Ochsner of Bloomberg Law reports that Latham & Watkins LLP is
billing $5.7 million for about three months of work representing
Mallinckrodt PLC in the company's second Chapter 11 in three
years.
Mallinckrodt in October won court approval for a restructuring plan
that reduced a fund for opioid claimants to $700 million from $1.7
billion. The trust was established through an earlier bankruptcy
that sought to resolve litigation from states and individuals
accusing the drugmaker of contributing to the opioid crisis.
Two Latham partners billed more than $2,000 an hour for the second
bankruptcy, according to a Wednesday filing in the US Bankruptcy
Court for the District of Delaware.
About Mallinckrodt plc
Mallinckrodt (OTCMKTS: MNKTQ) -- http://www.mallinckrodt.com/-- is
a global business consisting of multiple wholly-owned subsidiaries
that develop, manufacture, market and distribute specialty
pharmaceutical products and therapies. The company's Specialty
Brands reportable segment's areas of focus include autoimmune and
rare diseases in specialty areas like neurology, rheumatology,
nephrology, pulmonology and ophthalmology; immunotherapy and
neonatal respiratory critical care therapies; analgesics; and
gastrointestinal products. Its Specialty Generics reportable
segment includes specialty generic drugs and active
pharmaceutical ingredients.
On Oct. 12, 2020, Mallinckrodt plc and certain of its affiliates
sought Chapter 11 protection in Delaware (Bankr. D. Del. Lead Case
No. 20-12522) to seek approval of a restructuring that would reduce
total debt by $1.3 billion and resolve opioid-related claims
against them. Mallinckrodt in mid-June 2022 successfully completed
its reorganization process, emerged from Chapter 11 and completed
the Irish Examinership proceedings.
Mallinckrodt Plc said in a regulatory filing in early June 2023
that it was considering a second bankruptcy filing and other
options after its lenders raised concerns over an upcoming $200
million payment related to opioid-related litigation.
Mallinckrodt plc and certain of its affiliates again sought Chapter
11 protection (Bankr. D. Del. Lead Case No. 23-11258) on Aug. 28,
2023. Mallinckrodt disclosed $5,106,900,000 in assets and
$3,512,000,000 in liabilities as of June 30, 2023.
Judge John T. Dorsey oversees the new cases.
In the prior Chapter 11 cases, the Debtors tapped Latham & Watkins,
LLP and Richards, Layton & Finger, P.A. as their bankruptcy
counsel; Arthur Cox and Wachtell, Lipton, Rosen & Katz as corporate
and finance counsel; Ropes & Gray, LLP as litigation counsel;
Torys, LLP as CCAA counsel; Guggenheim Securities, LLC as
investment banker; and AlixPartners, LLP, as restructuring
advisor.
In the new Chapter 11 cases, the Debtors tapped Latham & Watkins,
LLP and Richards, Layton & Finger, P.A., as their bankruptcy
counsel; Arthur Cox and Wachtell, Lipton, Rosen & Katz as corporate
and finance counsel; Guggenheim Securities, LLC, as investment
banker; and AlixPartners, LLP, as restructuring advisor. Kroll is
the claims agent.
MBIA INC: BOD Declares Extraordinary Cash Dividend on Common Shares
-------------------------------------------------------------------
MBIA Inc. announced that its Board of Directors has declared an
extraordinary cash dividend on MBIA common stock of $8.00 per share
to shareholders of record as of December 18 to be paid on December
22, which totals approximately $409 million, based on 51.1 million
shares outstanding.
Additionally, the Company also announced on December 7 that the New
York Department of Financial Services approved a $550 million
extraordinary dividend to be paid to MBIA by its wholly-owned
subsidiary National Public Finance Guarantee Corporation, and
separately, on November 20, 2023 the Corporation received a $97.245
million as of right dividend from National.
The remainder of the dividends from National are being retained by
MBIA and are intended to be used for general corporate purposes
including, but not limited to, future operating expenses and debt
service obligations.
Bill Fallon, MBIA Inc. CEO, said, "We are pleased to provide this
extraordinary distribution of shareholder value to our shareholders
and significantly improve MBIA's liquidity for its stakeholders. We
will continue to pursue additional measures to enhance shareholder
value as we take steps to achieve the ultimate resolution of the
Company."
"MBIA expects that National will continue to seek approval to pay
additional extraordinary dividends to MBIA in future years.
However, there can be no assurance whether or when NYDFS will
approve such requests and, if the NYDFS does approve such
dividends, in what amounts. Furthermore, any future dividend
payments by MBIA to shareholders are within the absolute discretion
of our board of directors and will depend on, among other things,
the receipt of additional extraordinary dividends from National,
our results of operations, working capital requirements, capital
expenditure requirements, financial condition, level of
indebtedness, contractual restrictions with respect to the payment
of dividends, business opportunities, anticipated cash needs,
provisions of applicable law and other factors that our board of
directors may deem relevant."
"For U.S. federal income tax purposes, distributions made by MBIA
to a U.S. shareholder, other than with respect to holders of
unvested restricted shares, generally will constitute dividends
solely to the extent of our current and accumulated earnings and
profits. Through September 30, 2023 we do not have current and
accumulated E&P and based on our current analysis, we do not expect
to have any current or accumulated E&P through December 31, 2023.
Thus, we expect that the dividend will be treated as a tax-free
return of investment up to an investor's adjusted cost basis in its
shares, and that if an investor's adjusted cost basis is reduced to
zero, any remaining portion of the dividend will be taxed as
capital gains. Future dividends, if any, may or may not receive
similar tax treatment."
"The process of determining current and accumulated E&P requires a
final determination of our financial results for the year and a
review of certain other factors that will be announced with our
full year 2023 financial results on February 28, 2024. To the
extent that we do in fact have current or accumulated E&P in 2023,
the dividend will be taxed as a dividend to the extent of such
current or accumulated E&P. The amount of the dividend payable to
holders of unvested restricted shares will be taxed as ordinary
income. Shareholders should consult their own tax professionals
regarding their receipt of this dividend."
About MBIA
MBIA Inc., together with its consolidated subsidiaries, operates
within the financial guarantee insurance industry. MBIA manages
its business within three operating segments: 1) United States
public finance insurance; 2) corporate; and 3) international and
structured finance insurance. The Company's U.S. public finance
insurance portfolio is managed through National Public Finance
Guarantee Corporation, its corporate segment is managed through
MBIA Inc. and several of its subsidiaries, including our service
company, MBIA Services Corporation, and its international and
structured finance insurance business is primarily managed through
MBIA Insurance Corporation and its subsidiaries.
MBIA reported a net loss attributable to the Company of $195
million in 2022, a net loss attributable to the Company of $445
million in 2021, and a net loss attributable to the Company of $578
million in 2020.
* * *
Egan-Jones Ratings Company on September 28, 2023, maintained its
'CCC-' foreign currency and local currency senior unsecured ratings
on debt issued by MBIA Inc.
METROPOLITAN BREWING: Loeb to Auction Assets in Mid-January 2024
----------------------------------------------------------------
Loeb Equipment, a leader in the global equipment and auction space,
operating since 1880, will be conducting the auction of
Metropolitan Brewing in mid-January 2024. The bankruptcy court has
entrusted Loeb with the sale of assets from Metropolitan, an
industry staple in German Lager brewing for the last fifteen
years.
Metropolitan Brewing, a company founded by husband-and-wife team
Doug and Tracy Hurst and located at 3057 N. Rockwell Street in
Chicago, has filed for bankruptcy protection, and will be closing
after fifteen years of business. Metropolitan specialized and only
brewed lagers in typical German fashion.
"Loeb is proud to offer its expertise in helping a legendary
Chicago brewery navigate its bankruptcy and monetize its assets,"
said Howard Newman, President of Loeb. "Loeb has deep experience in
the auction and liquidation of brewery equipment, and we will use
this expertise to conduct an auction fit for the legend that
Metropolitan has been over the years."
The existing equipment at Metropolitan's infamous
20,000-square-foot location overlooking the Chicago River is of
outstanding quality and condition and made by well-respected OEMs.
Most units were manufactured between 2015 and the present and will
be highly sought after when released to the marketplace.
For more information about the auction, visit Loeb's website or
call 773-548-4131.
About Loeb
Since 1880, Loeb -- https://www.loebequipment.com -- has been
helping manufacturers and financial institutions leverage their
industrial assets by managing the equipment lifecycle. Loeb
monetizes industrial assets through acquisitions, sales,
valuations, and financing.
About Metropolitan Brewing, LLC
Metropolitan Brewing, LLC is a manufacturer of German-style beers
in Chicago, Illinois.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. N.D. Ill. Case No. 23-13209) on
October 3, 2023. In the petition signed by Tracy Hurst, authorized
representative, the Debtor disclosed up to $1 million in assets and
up to $10 million in liabilities.
Judge Deborah L. Thorne oversees the case.
Matthew E. McClintock, Esq., at Goldstein & McClintock LLP,
represents the Debtor as legal counsel.
MOZ CORP: Court OKs Interim Cash Collateral Access
--------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Georgia,
Atlanta Division, authorized Moz Corp. to use cash collateral, on
an interim basis, in accordance with the budget, with a 10%
variance.
The Debtor requires the use of cash collateral to pay its normal
operation expenses.
Incredible Bank has a first priority security interest in cash
collateral pursuant to its UCC-1 tiled on October 1, 2021 in the
amount of $2 million.
The use of the cash collateral will continue until one or more of
the following events or conditions: (1) the conversion or dismissal
of the Chapter 11 case, (2) the Debtor's failure to duly and
punctually perform any of its obligations under the Order, or (3)
the Order being amended, vacated, stayed, reversed or otherwise
modified.
As partial adequate protection to the Lender, for the Debtor's use
of cash collateral, Lender is granted replacement liens on
post-petition property of the same validity, extent, and priority
and upon the same cash collateral as each entity's pre-petition
liens. Lender will not be required to file financing statements or
other documents in any jurisdiction or take any other action in
order to validate or perfect the security interests and liens
granted pursuant to the provisions of the Order, and such security
interests and liens will be deemed automatically perfected upon
entry of the Order.
In addition to the liens and security interests granted, the Lender
will be entitled to an administrative claim pursuant to 11 U.S.C.
Section 507 (b) to the extent, if any, that the adequate protection
for the Debtor's use of cash collateral provided proves to be
inadequate.
In addition, the Debtor will make adequate protection payments to
the Lender in the amount of $10,000 per month. Said payments will
begin January 1, 2024 and continue every month thereafter on the
1st of each month.
A hearing on the matter is set for January 23, 2024 at 11 a.m.
A copy of the order is available at https://urlcurt.com/u?l=fwKenj
from PacerMonitor.com.
About Moz Corp dba Moz Corp Logistics
Moz Corp dba Moz Corp Logistics is part of the general freight
trucking industry. The Debtor sought protection under Chapter 11 of
the U.S. Bankruptcy Code (Bankr. N.D. Ga. Case No. 23-60332) on
October 19, 2023. In the petition signed by Mursel Ozkan,
president, the Debtor disclosed $519,671 in assets and $2,632,303
in total liabilities.
Judge Barbara Ellis-Monro oversees the case.
Ian Falcone, Esq., at The Falcone Law Firm, PC, represents the
Debtor as legal counsel.
NEW HORIZON RE: Unsecureds to Get 5 Cents on Dollar in Plan
-----------------------------------------------------------
New Horizon RE, LLC, filed with the U.S. Bankruptcy Court for the
Northern District of New York a Small Business Plan of
Reorganization dated December 11, 2023.
The Debtor is an LLC. Since 2016, the Debtor has been in the
business of managing properties, including properties owned by the
Debtor and properties owned by others.
Non-priority unsecured creditors holding allowed claims will
receive distributions, which the proponent of this Plan has valued
at approximately 5 cents on the dollar. This Plan also provides for
the payment of administrative and priority claims.
Class 2A consists of the Secured claim of Lima One Capital LLC,
mortgage holder on 235 Treetop. This Lima One claim will be paid
the value of the collateral at 235 Treetop Lane ($430,000.00).
Payments will be amortized at 8% interest over a 30-year term.
Debtor will make payments of $3,155.19 per month for 60 months.
Debtor will make a balloon payment in the 61sth month for the
balance remaining of the $430,000.00 in full. The remainder of
Lima's claim that is in excess of the $430,000.00 value of the
collateral ($219,957.34) will be paid as unsecured in Class 3.
Class 2B consists of the claim of Lima One Capital LLC, mortgage
holder on 727 Bennett St. This Lima One claim will be paid pursuant
to the contract. Debtor will remain current with ongoing mortgage
payments on this claim.
Class 2C consists of the claims of Property Tax holders: City of
Wilmington Revenue Division, and New Castle County. The property
tax claims on both parcels of real property will be paid in full
through the Subchapter V Plan with 12% interest. No Proofs of Claim
were filed, but the amounts listed in the petition totaled
$8,560.82. Debtor will pay $400.00 per month for 24 months.
Class 3 consists of non-priority unsecured creditors. Unsecured
creditors will be paid $345.80 total to unsecured creditors, which
will be distributed pro-rata to all allowed unsecured claims. It is
anticipated that this will yield approximately 5 cents on the
dollar of all allowed claims.
Equity Interest holders shall receive 100% of the member interests
in the reorganized Debtor.
The sources of the cash the Debtor will have on hand by the
Effective Date (projected to be April 15, 2024).
A full-text copy of the Plan of Reorganization dated December 11,
2023 is available at https://urlcurt.com/u?l=2V42vU from
PacerMonitor.com at no charge.
Attorneys for Debtor:
Peter A. Orville, Esq.
Orville & McDonald Law, PC
30 Riverside Drive
Binghamton, NY 13905
About New Horizon RE
New Horizon RE LLC is a limited liability company in New York.
New Horizon RE LLC sought relief under Subchapter V of Chapter 11
of the U.S. Bankruptcy Code (Bankr. N.D.N.Y. Case No. 23-60667) on
Sept. 11, 2023. In the petition filed by Courtney Williams, as
member, the Debtor reported assets and liabilities between $500,000
and $1 million each.
NEXERA MEDICAL: Unsecureds to Get $147.5K in Subchapter V Plan
--------------------------------------------------------------
NEXERA Medical, Inc., submitted an Amended Plan of Reorganization
under Subchapter V dated December 11, 2023.
The Plan provides for the emergence of the Debtor from this Chapter
11 Case with the Debtor as Reorganized Debtor.
From Jan. 1, 2023 to the Petition Date, Debtor had no income. In
2022, Debtor's gross income was $4,000, while in 2021, gross sales
were $905. The Debtor has one sale since filing for $16,060 gross.
The cost of production for the order was $2,080.00.
Debtor listed assets of $153,173 upon filing. The $3,651 in
Debtor's bank account, $149,319 of raw materials in the form of
Lin/Yard rolls, and 1 office computer. The raw materials have been
discounted from their original purchase price many years prior to
filing due to the inability of Debtor to obtain sales large enough
to allow the transformation of all such raw material.
Further, although a small portion of the raw materials have been
turned into masks to fulfill the sole post-petition order to date,
the Debtor is leaving the value of the raw materials unchanged.
Further, for Plan purposes only, the Debtor is placing a value of
$30,000 on the intellectual property. It is extremely specialized
and Debtor believes the current board members are integral to any
such production. More importantly, it has produced an extremely
small income stream over the past few years including
post-petition. It's value independent of the Debtor is little to
none.
The Debtor must also show that it will have enough cash over the
life of the Plan to make the required Plan payments. Shareholder
Paul Sallarulo will be providing a lump sum amount of $147,500
prior to confirmation for payment of all distributions to unsecured
creditors. Mr. Sallarulo will also be personally guaranteeing
payment of all Debtor attorney fees not paid prior to or at
confirmation. An additional $2,500 is also being provided
specifically for anticipated Subchapter V Trustee fees.
Currently the Debtor is in the process of fulfilling its sole order
from 2023 in the amount of $16,060 and expects to equal or double
such sales over the next 3 years. The immediate payment of $147,500
at confirmation exceeds projections of gross sales of similar
amounts for the next 9+ years ($16,060 x 9 years = $144,540).
Class 1 consists of the Allowed Unsecured Claims. This Class shall
be paid $147,500 on the Effective Date. All payments are pro rata
based upon the allowed amounts of such claims. This Class is
impaired.
All payments as provided for in the Plan shall be funded by Paul
Sallarulo and cash on hand.
A full-text copy of the Amended Plan dated December 11, 2023 is
available at https://urlcurt.com/u?l=m28eEl from PacerMonitor.com
at no charge.
Attorneys for Debtor:
Jordan L. Rappaport, Esq.
RAPPAPORT OSBORNE & RAPPAPORT, PLLC
1300 North Federal Highway, Suite 203
Boca Raton, FL 33432
Tel: (561) 368-2200
About NEXERA Medical
NEXERA Medical, Inc., is in the business of producing and selling
reusable antimicrobial respiratory masks.
NEXERA Medical sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. Case No. 23-13388) on April 28,
2023. In the petition signed by James Magruder, director, the
Debtor disclosed $155,521 in assets and $1,902,367 in liabilities.
Judge Scott M. Grossman oversees the case.
Jordan L. Rappaport, Esq., at Rappaport Osborne and Rappaport,
PLLC, is the Debtor's legal counsel.
OCEAN POWER: Incurs $7.2 Million Net Loss in Second Quarter
-----------------------------------------------------------
Ocean Power Technologies, Inc. filed with the Securities and
Exchange Commission its Quarterly Report on Form 10-Q disclosing a
net loss of $7.21 million on $889,000 of revenues for the three
months ended Oct. 31, 2023, compared to a net loss of $4.84 million
on $303,000 of revenues for the three months ended Oct. 31, 2022.
For the six months ended Oct. 31, 2023, the Company reported a net
loss of $14.25 million on $2.16 million of revenues, compared to a
net loss of $10.70 million on $1.02 million of revenues for the six
months ended Oct. 31, 2022.
As of Oct. 31, 2023, the Company had $39.62 million in total
assets, $7.97 million in total liabilities, and $31.65 million in
total shareholders' equity.
Combined cash, restricted cash, cash equivalents and short-term
investments as of Oct. 31, 2023 was $18.9 million, compared to
$46.4 million at Oct. 31, 2022.
Net cash used in operating activities for the six months ended Q224
was $15.5 million, compared to $11.0 million for the same period in
the prior year. This reflects the net loss, payment of the earnout
related to OPT's autonomous vehicles business as a result of this
business exceeding expectations, investment in inventory to satisfy
growing backlog, and payment of employment bonuses that were
accrued during fiscal year 2023.
Management Commentary
Philipp Stratmann, OPT's president and chief executive officer,
commented, "We continue to make progress with our strategy as
evidenced by the continued growth in our backlog, increased
opportunity pipeline, and delivery for our customers. Recent
contract wins with large government prime contractors to service
various U.S. Government Agencies are evidence of the growth of our
government related backlog. Approximately 80% of our business is
now with national security and defense customers, and our two
primary platforms, WAM-V vehicles and PowerBuoys, continue to see
increased demand pull in these markets. Since the end of the
quarter, we have substantially completed our research and
development efforts, leading to reduced future annualized
expenditures. As a result of these changes, combined with
increased demand, we believe OPT will be cashflow positive within
calendar year 2025. We remain steadfast in our commitment to drive
value to our customers and deliver value to our shareholders, and
will continue to explore opportunities to accelerate value
enhancement."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/ix?doc=/Archives/edgar/data/1378140/000149315223044704/form10-q.htm
About Ocean Power Technologies
Headquartered in Monroe Township, New Jersey, Ocean Power
Technologies, Inc. -- http://www.oceanpowertechnologies.com--
provides ocean data collection and reporting, marine power,
offshore communications, and Maritime Domain Awareness ("MDA")
products and consulting services. The Company offers its products
and services to a wide-range of customers, including those in
government and offshore energy, oil and gas, construction, wind
power and other industries. The Company is involved in the entire
life cycle of product development, from product design through
manufacturing, testing, deployment, maintenance and upgrades,
working closely with partners across its supply chain.
Ocean Power reported a net loss of $26.33 million for the fiscal
year ended April 30, 2023, a net loss of $18.87 million for fiscal
year ended April 30, 2022, a net loss of $14.76 million for the 12
months ended April 30, 2021, a net loss of $10.35 million for the
12 months ended April 30, 2020, and a net loss of $12.25 million
for the 12 months ended April 30, 2019.
OCEAN POWER: Secures Multi-Buoy Contract for US Government Agencies
-------------------------------------------------------------------
Ocean Power Technologies, Inc. announced it has received a letter
contract from a US based prime contractor for multiple maritime
domain awareness buoys advancing its commitment to national
security and intelligence.
This collaboration between OPT and the prime contractor will focus
on providing multidomain marine solutions in support of US
government agencies. OPT's PowerBuoy's will play a pivotal role in
enhancing surveillance capabilities above and below the waterline,
contributing significantly to maritime domain awareness
initiatives. The current contract enables OPT to advance the
preparation of multiple of its Next Generation PowerBuoy systems
with definitzation to be received.
Philipp Stratmann, CEO of OPT, expressed enthusiasm about the
collaboration's potential impact, stating, "This collaboration
exemplifies our commitment to innovation and underscores the
crucial role our technology plays in bolstering maritime national
security. We are excited to work alongside our partner to provide
state-of-the-art solutions, including multi-buoy arrays, that
contribute to a safer maritime environment."
The Company said the integration of OPT's technology expertise
marks a significant stride towards strengthening maritime
surveillance efforts, ensuring heightened security and safety
within the maritime domain.
About Ocean Power Technologies
Headquartered in Monroe Township, New Jersey, Ocean Power
Technologies, Inc. -- http://www.oceanpowertechnologies.com--
provides ocean data collection and reporting, marine power,
offshore communications, and Maritime Domain Awareness ("MDA")
products and consulting services. The Company offers its products
and services to a wide-range of customers, including those in
government and offshore energy, oil and gas, construction, wind
power and other industries. The Company is involved in the entire
life cycle of product development, from product design through
manufacturing, testing, deployment, maintenance and upgrades,
working closely with partners across its supply chain.
Ocean Power reported a net loss of $26.33 million for the fiscal
year ended April 30, 2023, a net loss of $18.87 million for fiscal
year ended April 30, 2022, a net loss of $14.76 million for the 12
months ended April 30, 2021, a net loss of $10.35 million for the
12 months ended April 30, 2020, and a net loss of $12.25 million
for the 12 months ended April 30, 2019.
ORTHOCARE SOLUTIONS: Voluntary Chapter 11 Case Summary
------------------------------------------------------
Debtor: Orthocare Solutions, Inc.
6000 Executive Boulevard
Suite 500
North Bethesda, MD 20852
Business Description: Orthocare Solutions is a veteran-owned small
business serving the Washington, DC and
Baltimore metro areas. Four separate
locations offer customized orthotics,
prosthetics, and medical equipment to
patients of all ages.
Chapter 11 Petition Date: December 18, 2023
Court: United States Bankruptcy Court
District of Maryland
Case No.: 23-19191
Debtor's Counsel: Craig M. Palik, Esq.
MCNAMEE HOSEA, P.A.
6404 Ivy Lane, Suite 820
Greenbelt, MD 20770
Tel: (301) 441-2420
Email: cpalik@mhlawyers.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by David Fred as owner.
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/LIZILQY/Orthocare_Solutions_Inc__mdbke-23-19191__0001.0.pdf?mcid=tGE4TAMA
PANGEA ORGANICS: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: Pangea Organics, Inc.
2525 Arapahoe Avenue
Unit E4
Box 838
Boulder, CO 80302
Business Description: Pangea offers a selection of skincare and
bodycare products. Pangea claims that its
all-new skincare collection harnesses the
highest concentration of nature-rich
ingredients combined with clinically-proven
actives for the most effective products,
from soil to skin.
Chapter 11 Petition Date: December 18, 2023
Court: United States Bankruptcy Court
District of Colorado
Case No.: 23-15826
Judge: Hon. Michael E. Romero
Debtor's Counsel: Jeffrey S. Brinen, Esq.
KUTNER BRINEN DICKEY RILEY PC
1660 Lincoln Street, Suite 1720
Denver, CO 80264
Tel: 303-832-2400
Email: jsb@kutnerlaw.com
Estimated Assets: $50,000 to $100,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Joshua Onysko as chief executive
officer.
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/2BWKBOY/Pangea_Organics_Inc__cobke-23-15826__0001.0.pdf?mcid=tGE4TAMA
PEGASUS HOME: SSG Advises Business in Blue Torch Sale
-----------------------------------------------------
SSG Capital Advisors, LLC (SSG) served as the investment banker to
Pegasus Home Fashions, Inc. and its affiliated entities
(collectively, Pegasus or the Company) in the sale of substantially
all its assets to an affiliate of Blue Torch Capital LP (Blue
Torch). The sale was effectuated through a Chapter 11 Section 363
process in the U.S. Bankruptcy Court for the District of Delaware.
The transaction closed in December 2023.
Founded in 1990 and headquartered in Elizabeth, NJ, Pegasus is one
of the largest manufacturers and distributors of bedding products
in the United States. Specializing in the manufacture of fiber and
foam-filled pillows, the Company also wholesales a selection of
ancillary bedding basics such as mattress pads, toppers, and pillow
protectors. Products are marketed under the Company's proprietary
brands, including EZ Dreams, ISO-Pedic, America's Pillow, and
Essence of Bamboo, among others, as well as a broad portfolio of
licensed and private label brands.Pegasus serves leading customers
within the mass-market, warehouse club, and specialty channels.
Following the sale of the Company to a private equity fund in 2021,
the Company faced challenges including significant liquidity
constraints and the sudden departure of the Company's CEO. The
Company hired an interim CEO, who immediately embarked on a
value-creation and optimization plan to stabilize the business.
Despite these efforts, market fluctuations, rising commodity and
raw material prices, and an increasingly competitive environment
led to a decline in revenue and margins, further straining
liquidity. The Company filed for bankruptcy protection with a
stalking horse credit bid from Blue Torch in August 2023 to secure
additional funding and explore available alternatives to the
stalking horse proposal.
SSG was retained to conduct an accelerated marketing process during
the bankruptcy and solicit competing offers to the stalking horse
bid from potential strategic and financial acquirers. After
extensive marketing and discussion with numerous interested
parties, the stalking horse credit bid submitted by Blue Torch was
determined to be the highest and best offer for substantially all
the Company's assets. SSG's extensive Chapter 11 transaction
experience and knowledge of the industry resulted in a process
where value was maximized in an expedited time frame.
Blue Torch is a direct lender and investment manager that seeks to
invest in middle-market companies.
Other professionals who worked on the transaction include:
* Timothy Boates, Chief Executive Officer of Pegasus Home
Fashions, Inc., and Patrick Carew of RAS Management Advisors, LLC,
financial advisor to Pegasus Home Fashions, Inc.;
* Michael R. Nestor, Kenneth J. Enos, S. Alexander Faris,
Rebecca L. Lamb, Emily C.S. Jones and Kristin L. McElroy of Young
Conaway Stargatt & Taylor, LLP, bankruptcy counsel to Pegasus Home
Fashions, Inc.;
* Adam C. Harris, Gregory D. Ruback, Reuben E. Dizengoff,
Lauren M. Troeller, Julia R. Cummings, Theodore A. Keyes and
Yessenia Gonzalez of Schulte Roth & Zabel LLP, counsel to Blue
Torch Capital LP;
* Mark S. Indelicato and Jacob T. Schwartz of Thompson Coburn
LLP, counsel to Webster Business Credit Corporation;
* Adam G. Landis, Matthew B. McGuire and Nicolas E. Jenner of
Landis Rath & Cobb LLP, local counsel to Webster Business Credit
Corporation and Blue Torch Capital LP;
* Jeffrey L. Cohen, Eric S. Chafetz, Bruce S. Nathan, and
Jordana Linder Renert of Lowenstein Sandler LLP and Eric J. Monzo
and Brya Michele Keilson of Morris James LLP, counsel to the
Unsecured Creditors Committee; and
* Mark Greenberg, Seth A. Waschitz, Gibbons Sinclair and Manuel
Luna of Alvarez & Marsal, financial advisor to the Unsecured
Creditors Committee.
About Pegasus Home Fashions
Pegasus Home Fashions Inc. is a manufacturer of house furnishing
products based in Elizabeth, N.J.
Pegasus and its affiliates filed Chapter 11 petitions (Bankr. D.
Del. Lead Case No. 23-11236) on Aug. 24, 2023. In the petition
filed by its chief executive officer, Timothy Boates, Pegasus
reported $100 million to $500 million in both assets and
liabilities.
The Debtors tapped Michael R. Nestor, Esq., at Young Conaway
Stargatt & Taylor, LLP as bankruptcy counsel; SSG Advisors, LLC as
investment banker; Reindeer Consulting Group, LLC as tax
consultant; Prager Metis CPAs, LLC as tax preparer and tax services
provider; and Timothy Boates of RAS Management Advisors, LLC as
interim chief executive officer. Epiq Corporate Restructuring, LLC
serves as the Debtors' administrative advisor and notice, claims,
solicitation and balloting agent.
The U.S. Trustee for Regions 3 and 9 appointed an official
committee to represent unsecured creditors in the Debtors' Chapter
11 cases. Lowenstein Sandler, LLP and Morris James, LLP serve as
the committee's bankruptcy counsel and Delaware counsel,
respectively.
PENNSYLVANIA REAL ESTATE: Gets OK to Hire Kroll as Claims Agent
---------------------------------------------------------------
Pennsylvania Real Estate Investment Trust and its affiliates
received approval from the U.S. Bankruptcy Court for the District
of Delaware to hire Kroll Restructuring Administration, LLC as
their claims and noticing agent.
The firm will oversee the distribution of notices and will assist
in the maintenance, processing and docketing of proofs of claim
filed in the Debtors' Chapter 11 cases.
The firm's hourly rates are:
Claim and Noticing
Analyst $30 - $60 per hour
Technology Consultant $35 - $110 per hour
Consultant/Senior Consultant $65 - $195 per hour
Director $175 - $245 per hour
Solicitation, Balloting and Tabulation
Solicitation Consultant $220 per hour
Director of Solicitation $245 per hour
Prior to the petition date, the Debtors provided Kroll an advance
in the amount of $50,000.
Benjamin Steele, managing director at Kroll, 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:
Benjamin J. Steele
Kroll Restructuring Administration LLC
55 East 52nd Street, 17th Floor
New York, NY 10055
About PREIT
PREIT (OTCQB:PRET) -- http://www.preit.com/-- is a real estate
investment trust that owns and manages innovative properties
developed to be thoughtful, community-centric hubs. PREIT's robust
portfolio of carefully curated, ever-evolving properties generates
success for its tenants and meaningful impact for the communities
it serves by keenly focusing on five core areas of established and
emerging opportunity: multifamily & hotel, health & tech, retail,
essentials & grocery and experiential. Located primarily in densely
populated regions, PREIT is a top operator of high quality,
purposeful places that serve as one-stop destinations for customers
to shop, dine, play and stay.
On December 10, 2023, the Debtors voluntarily filed the Chapter 11
cases in the United States Bankruptcy Court. The Debtors filed a
motion with the Bankruptcy Court seeking to jointly administer the
Chapter 11 Cases under the caption "In re: Pennsylvania Real Estate
Investment Trust, et al."
The Hon. Karen B. Owens oversees the Case.
As of Sept. 30, 2023, PREIT has $1.72 billion in total assets and
total debts of $1.99 billion.
DLA Piper LLP (US), Wachtell, Lipton, Rosen & Katz and Dilworth
Paxson LLP are serving as legal counsel and PJT Partners LP is
serving as financial advisor to PREIT.
Paul Hastings LLP and Young Conaway Stargatt & Taylor, LLP are
serving as legal counsel and Houlihan Lokey is serving as financial
advisor to the ad hoc group of PREIT's first lien and second lien
secured lenders. Paul Hastings also advises the DIP Lenders.
PLASKOLITE PPC II: Moody's Affirms 'B3' CFR, Outlook Stable
-----------------------------------------------------------
Moody's Investors Service affirmed Plaskolite PPC Intermediate II
LLC's corporate Family Rating at B3 and probability of default
rating at B3-PD. At the same time, Moody's affirmed the company's
first-lien term loan and the revolving credit facility ratings at
B3. The ratings outlook is stable.
The ratings affirmation reflects Moody's expectation that the
company's operating performance and credit metrics will improve
over the next 12-18 months as the volumes continue to recover from
the lows of 2023. Earnings will also benefit from
cost-rationalization efforts which will support the company's
ability to generate free cash flow. Plaskolite's financial leverage
is high (adjusted debt/EBITDA) and the company faces upcoming debt
maturities, however, Moody's believes the company will be able to
address these refinancing needs in a timely manner.
RATINGS RATIONALE
Plaskolite's B3 CFR reflects the company's high financial leverage
and upcoming debt maturities. Plaskolite's adjusted debt/EBITDA
(financial leverage) at the end of September 2023 was over 9.0x.
Moody's expects earnings growth to reduce leverage below 8.5x over
the next 12-18 months. The ratings also reflect the company's
business focus on manufacturing acrylic sheets and polycarbonate
sheets, reliance on two major suppliers for MMA and PC resins, and
a relatively concentrated customer base. Interchangeability and
substitution risk from other types of thermoplastics and
competition with large backward integrated plastics producers are
other rating constraints.
Nonetheless, the ratings are supported by the company's leading
market position in thermoplastic products and good profitability
margins. Its modest product and end market diversity, combined with
operational flexibility demonstrated in the past economic downturn
and a meaningful proportion of contracts with quarterly raw
material adjustment mechanisms supports the ratings.
The stable outlook reflects Moody's expectation of growth in
Plaskolite's revenue and earnings over the next 12-18 months which
will result in a modest reduction in leverage. The outlook also
assumes the company will be able to address its refinancing needs
in a timely manner.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be downgraded if the company fails to make
further progress in refinancing its debt maturities such that the
risk of default increases. Deterioration in earnings and weaker
liquidity or a more aggressive financial strategy could prompt a
ratings downgrade.
The ratings could upgraded if the company addresses its refinancing
needs and continues to improve its earnings and free cash flow. A
reduction in adjusted debt/EBITDA to below 6.0x on a sustainable
basis will support consideration for a rating upgrade.
Headquartered in Columbus, Ohio, Plaskolite PPC Intermediate II LLC
is a global leader in manufacturing engineering thermoplastics,
including; Acrylic, Polycarbonate, ABS, Olefin, PVC, and PETG
Sheet, Extruded Profiles and PMMA Polymers. Based in Columbus, Ohio
and owned by Pritzker Private Capital along with, management and
other co-investors, Plaskolite's customized products are used in a
wide variety of applications, including windows, lighting, signage,
point-of-purchase displays, semiconductor, marine, transportation,
security, and bath & spa products. The company operates 19
manufacturing facilities with locations in the US, Mexico, Chile,
Israel, Bulgaria, and Spain and has a distribution center in the
Netherlands. PPC Partners acquired the company from Charlesbank in
December 2018.
The principal methodology used in these ratings was Chemicals
published in October 2023.
PONTOON BREWING: Files Emergency Bid to Use Cash Collateral
-----------------------------------------------------------
Pontoon Brewing Company, 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 the payment of
insurance premiums and Subchapter V escrow.
Ameris Bank, successor to Fidelity Bank, U. S. Small Business
Administration, and United Community Bank assert an interest in the
Debtor's cash collateral.
The Debtor's assets consist primarily of distribution brewing
equipment located at the Tucker Location, brewing equipment at the
Sandy Springs Location, machinery, fixtures, completed beer
inventory and brewing ingredients. All such assets require the
continuation of property and casualty insurance. Insurance premiums
are approximately $4.071 per month.
The Debtor has approximately $7,550 in cash. The Debtor has been
informed that an insurance claim relating to prepetition losses has
been approved and additional funds forthcoming.
The Debtor is indebted to Ameris Bank, successor to Fidelity Bank,
in the approximate amount of $246,000, secured by a security
interest in assets of the Debtor, the proceeds of which constitute
"cash collateral." The interest of Ameris is identified in a UCC-1
financing statement at 0602017-2823, Fulton County Records,
recorded on April 11, 2017, as continued by a Continuation
Statement at 0602022-001384, Fulton County Records, recorded on
March 10, 2022.
The Debtor is indebted to the Small Business Administration in the
approximate amount of $768,000, secured by a security interest in
assets of the Debtor, the proceeds of which constitute "cash
collateral." The interest of the SBA is identified in a UCC-1
financing statement at 038-2020-030320, Coweta County Records,
recorded on June 23, 2020.
The Debtor is indebted to United Community Bank in the approximate
amount of $1.735 million, secured by a security interest in assets
of the Debtor, the proceeds of which constitute "cash collateral."
The interest of UCB is identified in UCC-1 financing statements at
(i) 0602020-8638, Fulton County Records, recorded on December 30,
2020, (ii) 038-2022-006820, Coweta County Records, recorded on
February 24, 2022, (iii) 038-2022-016898, Coweta County Records,
recorded on May 11, 2022, and (iv) 038-2022-024622, Coweta County
Records, recorded on July 22, 2022.
The Debtor has agreed to provide adequate protection to the Cash
Collateral Creditors with valid and properly-perfected replacement
liens, pursuant to 11 U.S.C. section 361(2) on all property
acquired by the Debtor after the Petition Date that is the same or
similar nature, kind, or character as the collateral to which any
valid and perfected security interest of the Cash Collateral
Creditors attached prepetition and in the same priority as existed
on the Petition Date, except that no such replacement lien will
attach to the proceeds of any avoidance actions under Chapter 5 of
the Bankruptcy Code. The Adequate Protection Lien will be deemed
automatically valid and perfected upon entry of the Order.
A copy of the motion is available at https://urlcurt.com/u?l=mphL80
from PacerMonitor.com.
About Pontoon Brewing Company
Pontoon Brewing Company, LLC is an alcoholic beverage company in
Atlanta, Ga.
The Debtor filed a petition under Chapter 11, Subchapter V of the
Bankruptcy Code (Bankr. N.D. Ga. Case No. 23-61376) on Nov. 16,
2023, with up to $10 million in both assets and liabilities. Sean
O'Keefe, manager, signed the petition.
Judge Lisa Ritchey Craig oversees the case.
G. Frank Nason, IV, Esq., at Lamberth, Cifelli, Ellis & Nason, PA
represents the Debtor as legal counsel.
PROVIDENT COMMONWEALTH: S&P Affirms 'BB' ICR, Outlook Stable
------------------------------------------------------------
S&P Global Ratings revised its outlook to stable from negative and
affirmed its 'BB' rating on Massachusetts Development Finance
Agency's series 2018 project revenue bonds, issued for Provident
Commonwealth Educational Resources II (PCER).
PCER is a not-for-profit corporation organized for the sole purpose
of constructing and operating a new housing facility on the
University of Massachusetts Dartmouth (UMass Dartmouth) campus,
which is part of the University of Massachusetts System (UMass
System).
"The outlook revision reflects some improvement in occupancy and
coverage with a budget for coverage that meets the 1.2x coverage
covenant in fiscal 2024," said S&P Global Ratings credit analyst
Jessica Goldman.
RED ROOF: Court OKs Cash Collateral Access Thru Dec 19
------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California
authorized Red Roof Inc. to use cash collateral, on an interim
basis, in accordance with the budget, through December 19, 2023.
Velocity Commercial Capital, LLC asserts an interest in the
Debtor's cash collateral, with a total secured claim of $641,816.
Robert Lee, John Kim and Vickie Han are the second lien holder,
with a principal balance due in the amount of $168,628.
The court said following payments are allowed: $3,925 to Velocity
Commercial Capital, $675 to Robert Kim, $200 for property
insurance, and $200 for maintenance.
A continued hearing on the matter is set for December 19 at 1 p.m.
A copy of the order is available at https://urlcurt.com/u?l=3JTDgf
from PacerMonitor.com.
About Red Roof Inc.
Red Roof Inc. sought protection under Chapter 11 of the U.S.
Bankrutpcy 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.
Judge Neil W. Bason oversees the case.
Kevin Tang, Esq., at Tang and Associates, represents the Debtor as
legal counsel.
RI-TAR ENTERPRISES: Hires Eric A. Liepins PC as Counsel
-------------------------------------------------------
Ri-Tar Enterprises, Inc. seeks approval from the U.S. Bankruptcy
Court for the Northern District of Texas to employ Eric A. Liepins,
PC as its bankruptcy counsel.
The Debtor requires legal assistance for the purpose of orderly
liquidating the assets, reorganizing the claims of the estate, and
determining the validity of claims asserted in the estate.
The hourly rates of the firm's counsel and staff are as follows:
Eric A. Liepins $275
Paralegals and Legal Assistants $30-$50
In addition, the firm will seek reimbursement for expenses
incurred.
The firm has been paid a retainer of $10,000 plus filing fee.
Eric A. Liepins, Esq., the sole shareholder of the firm, 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:
Eric A. Liepins, Esq.
Eric A. Liepins, PC
12770 Coit Road, Suite 850
Dallas, TX 75251
Telephone: (972) 991-5591
Facsimile: (972) 991-5788
Email: eric@ealpc.com
About Ri-Tar Enterprises, Inc.
Ri-Tar Enterprises, Inc. in Arlington, TX, filed its voluntary
petition for Chapter 11 protection (Bankr. N.D. Tex. Case No.
23-43761) on December 6, 2023, listing as much as $1 million to $10
million in both assets and liabilities. Huay Ling Yen as president,
signed the petition.
ERIC A. LIEPINS, P.C. serve as the Debtor's legal counsel.
RITE AID CORP: Unions Denied Role in Talks With Bidders
-------------------------------------------------------
Steven Church and Jonathan Randles of Bloomberg News reported that
a federal judge said on Thursday, December 14, 2023 that unions
officials don't have the right to be involved in potential bids for
the bankrupt pharmacy chain Rite Aid Corp.
The ruling means unions for Rite Aid workers won't be able to
influence how bidders craft their offers as the company tries to
attract buyers for its stores. Tentative offers, known as
"indications of interest" were due last week.
About Rite Aid Corp.
Rite Aid -- http://www.riteaid.com/-- is a full-service pharmacy
that improves health outcomes. Rite Aid is defining the modern
pharmacy by meeting customer needs with a wide range of vehicles
that offer convenience, including retail and delivery pharmacy, as
well as services offered through our wholly owned subsidiaries,
Elixir, Bartell Drugs and Health Dialog. Elixir, Rite Aid's
pharmacy benefits and services company, consists of accredited mail
and specialty pharmacies, prescription discount programs and an
industry leading adjudication platform to offer superior member
experience and cost savings. Health Dialog provides healthcare
coaching and disease management services via live online and phone
health services. Regional chain Bartell Drugs has supported the
health and wellness needs in the Seattle area for more than 130
years. Rite Aid employs more than 6,100 pharmacists and operates
more than 2,100 retail pharmacy locations across 17 states.
The Debtors sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D.N.J. Lead Case No. 23-18993) on Oct. 15, 2023. In
the petition signed by Jeffrey S. Stein, chief executive officer
and chief restructuring officer, Rite Aid disclosed $7,650,418,000
in total assets and $8,597,866,000 in total liabilities.
Judge Michael B. Kaplan oversees the cases.
The Debtors tapped Kirkland & Ellis LLP and Kirkland & Ellis
International LLP as general bankruptcy counsel, Cole Schotz, P.C.,
as local bankruptcy counsel, Guggenheim Partners as investment
banker, Alvarez & Marsal North America, LLC, as financial, tax and
restructuring advisor, and Kroll Restructuring Administration as
claims and noticing agent.
ROAD LION: Court OKs Cash Collateral Access Thru Jan 2024
---------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Alabama
authorized Road Lion Corporation to use cash collateral, on an
interim basis, in accordance with the budget, pending a final
hearing set for January 2, 2024 at 1:30 p.m.
The entities that may assert an interest in the Debtor's cash
collateral are G Squared Funding, LLC, BMO Harris Bank, N.A.,
England Carrier Service, Motion 120 Trust, Corporation Service -
Agent, Crestmark Vendor Finance, Small Business Administration,
Signature Financial, and the Alabama Department of Revenue.
As adequate protection, each secured creditor is granted a
replacement lien, with the same validity and priority as the
creditor's prepetition lien, to the extent that
Debtor-in-Possession's use of the cash collateral results in a
decrease in the value of the secured creditor's interest, without
the necessity of the filing or execution of any document as may
otherwise be required under applicable non-bankruptcy law.
A copy of the order is available at https://urlcurt.com/u?l=5xoVE4
from PacerMonitor.com.
About Road Lion Corporation
Road Lion Corporation transports refrigerated freight throughout
the U.S. using tractors and refrigerated trailers.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D. Ala. Case No. 23-12841) on December 1,
2023. In the petition signed by Perry Lee Bryant,
president/shareholder, the Debtor disclosed up to $1 million in
both assets and liabilities.
Judge Henry A. Callaway oversees the case.
Anthony Bush, Esq., at The Bush Law Firm, LLC, represents the
Debtor as legal counsel.
SAFEMOON US LLC: Starts Chapter 7 Bankruptcy Proceeding
-------------------------------------------------------
Emily Nicolle of Bloomberg News reports that crypto firm SafeMoon
US LLC filed for Chapter 7 bankruptcy in a Utah court on Thursday,
December 14, 2023, a month after its executives were accused by
federal prosecutors of using millions of dollars of investor funds
to buy luxury homes and sports cars.
The Chapter 7 filing -- a process which means the firm intends to
liquidate its assets and shut down operations -- said SafeMoon had
between $10 million and $50 million in estimated assets. Its
liabilities were estimated at a maximum of $500,000, with up to 99
estimated creditors.
About SafeMoon US LLC
Pleasant Grove, Utah-based SafeMoon US, LLC, is a cryptocurrency
company project.
SafeMoon US LLC sought relief under Chapter 7 of the U.S.
Bankruptcy Code (Bankr. D. Utah Case No. 23-25749) on Dec. 14,
2023. In its petition, the Debtor listed between $10 million and
$50 million in estimated assets and a maximum of $500,000 in
estimated liabilities.
The Debtor's counsel:
Mark C. Rose
Mckay, Burton & Thurman, P.C.
Tel: (801) 521-4135
E-mail: mrose@mbt-law.com
The Chapter 7 trustee:
Ellen Ostrow
Foley & Lardner LLP
95 S. State St. Suite 2500
Salt Lake City, UT 84111
SCFT2 LLC: Hires Elliman Real Estate as Real Estate Broker
----------------------------------------------------------
SCFT2 LLC seeks approval from the U.S. Bankruptcy Court for the
Southern District of New York to employ Douglas Elliman Real Estate
Altman Brothers Team as real estate broker.
The firm will market the Debtor's property located at Lot 42, Tract
244811, City of Beverly Hills California.
The firm will be paid at the rate of 4 percent.
As disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Julia DeLorne
Douglas Elliman Real Estate
Altman Brothers Team
103 S Robertson Blvd
Los Angeles, CA 90048
Tel: (310) 819-3250
About SCFT2 LLC
SCFT2, LLC, a New York-based company, filed its voluntary petition
for Chapter 11 protection (Bankr. S.D.N.Y. Case No. 23-10904) on
June 6, 2023, with as much as $1 million to $10 million in both
assets and liabilities. Ron Curtis, manager, signed the petition.
Judge Lisa G. Beckerman oversees the case.
The Law Offices of Gabriel Del Virginia serves as the Debtor's
bankruptcy counsel.
SILICON VALLEY: SVB Financial Wants Seized $2-Bil. Outside Ch. 11
-----------------------------------------------------------------
Amelia Pollard of Bloomberg Law reports that SVB Financial Group,
the bankrupt former parent of Silicon Valley Bank, will have to
fight for about $2 billion seized by the Federal Deposit Insurance
Corp. outside of bankruptcy court.
Who legally owns the sum -- which makes up the majority of the
bankrupt former parent company's cash -- goes beyond bankruptcy
law, and as a result should be handled in district court, U.S.
District Judge John Cronan said in a Wednesday, December 20, 2023,
order.
When the bank failed in March, the FDIC guaranteed all deposits at
SVB, but later cut off the parent company's access to its own
deposits.
About Silicon Valley Bank
Silicon Valley Bank was the nation's 16th largest bank and the
biggest to fail since the 2008 financial meltdown.
During the week of March 6, 2023, Silicon Valley Bank, Santa Clara,
CA, experienced a severe "run-on-the-bank." On the morning of
March 10, 2023, the California Department of Financial Protection
and Innovation seized SVB and placed it under the receivership of
the Federal Deposit Insurance Corporation (FDIC).
The FDIC on March 13, 2023, disclosed that it transferred all
deposits -- both insured and uninsured -- and substantially all
assets of the former Silicon Valley Bank of Santa Clara,
California, to a newly created, full-service FDIC-operated "bridge
bank" in an action designed to protect all depositors of Silicon
Valley Bank.
SVB Financial Group is a financial services company focusing on the
innovation economy, offering financial products and services to
clients across the United States and in key international markets.
Prior to March 10, 2023, SVB Financial Group owned and operated
Silicon Valley Bank, a state-chartered bank.
On March 17, 2023, SVB Financial Group sought Chapter 11 bankruptcy
protection (Bankr. S.D.N.Y. Case No. 23-10367). The Hon. Martin
Glenn is the bankruptcy judge. The Debtor had assets of
$19,679,000,000 and liabilities of $3,675,000,000 as of Dec. 31,
2022.
Centerview Partners LLC is proposed financial advisor, Sullivan &
Cromwell LLP proposed legal counsel and Alvarez & Marsal proposed
restructuring advisor to SVB Financial Group as
debtor-in-possession. Kroll is the claims agent.
SMILEDIRECTCLUB LLC: Drops Antitrust Suit Amid Liquidation Plan
---------------------------------------------------------------
Katie Arcieri of Bloomberg Law reports that tooth straightening
company SmileDirectClub LLC has dropped an antitrust case against
the Georgia Board of Dentistry after announcing plans to liquidate
in bankruptcy.
SmileDirectClub agreed to voluntarily dismiss the case, with each
party bearing its own costs and fees, according to a Sunday,
December 10, 2023, filing in the US District Court for the Northern
District of Georgia. The company's decision to abandon the suit
comes after SmileDirectClub failed to secure capital that would
revive the company amid declining revenue.
About SmileDirectClub Inc.
SmileDirectClub, Inc. (Nasdaq: SDC) --
http://www.SmileDirectClub.com/-- is an oral care company and
creator of the first medtech platform for teeth straightening.
Through its cutting-edge telehealth technology and vertically
integrated model, SmileDirectClub is revolutionizing the oral care
industry. Its mission is to democratize access to a smile each and
every person loves by making it affordable and convenient for
everyone. SmileDirectClub is headquartered in Nashville,
Tennessee.
SmileDirectClub and its affiliates sought protection under Chapter
11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Lead Case No.
23-90786) on Sept. 29, 2023. In the petition signed by its chief
financial officer, Troy Crawford, SmileDirectClub disclosed
$498,712,000 in assets and $1,051,823,000 in liabilities.
Judge Christopher M. Lopez oversees the cases.
The Debtors tapped Kirkland & Ellis LLP and Kirkland & Ellis
International, LLP as general bankruptcy counsel; Jackson Walker,
LLP, as local bankruptcy counsel; Centerview Partners, LLC, as
financial advisor and investment banker; FTI Consulting, Inc., as
restructuring advisor; and Kroll Restructuring Administration, LLC,
as notice and claims agent.
SPI ENERGY: Adjourns Annual Meeting Until Dec. 22
-------------------------------------------------
SPI Energy Co., Ltd. announced that the Company's 2023 Annual
Meeting of Shareholders was convened on Dec. 9, 2023 at 10:00 a.m.
Pacific Time and adjourned, without any business being conducted,
due to lack of the required quorum.
Due to the lack of quorum, the Annual Meeting was adjourned to
allow additional time for the Company's shareholders to vote on the
proposals set forth in the Company's definitive proxy statement
filed with the U.S. Securities and Exchange Commission on Nov. 1,
2023.
The Annual Meeting will reconvene on Dec. 22, 2023 at 10:00 a.m.
Pacific Time at the offices of the Company at 4803 Urbani Ave.,
McClellan Park, CA 95652. During the current adjournment, the
Company will continue to solicit votes from its shareholders with
respect to the proposals set forth in the Proxy Statement.
Only shareholders of record, as of the record date, Oct. 31, 2023,
are entitled to and are being requested to vote at the Annual
Meeting, either in person or by proxy. Proxies previously
submitted in respect of the Annual Meeting will be voted at the
adjourned Annual Meeting unless properly revoked, and shareholders
who have previously submitted a proxy or otherwise voted need not
take any action.
The Company encourages all shareholders of record as of the Record
Date, who have not yet voted, to do so by Dec. 21, 2023 at 11:59
p.m. (Eastern Time). Shareholders may vote online or by telephone,
by following the instructions on the proxy card or voting
instruction form included with the Proxy Statement and related
proxy materials that were either mailed or emailed to each
shareholder, or by mail, by completing and returning the proxy card
in the addressed stamped envelope included with the proxy
materials.
Shareholders who have any questions or require any assistance with
completing a proxy or voting instruction form or who do not have
the required materials, may contact the Company's Secretary at
(408) 919-8000.
About SPI Energy Co.
SPI Energy Co., Ltd. is a global renewable energy company and
provider of solar storage and EV solutions that was founded in 2006
in Roseville, California and is now headquartered in McClellan
Park, California.
SPI Energy reported a net loss of $33.72 million for the year ended
Dec. 31, 2022, compared to a net loss of $44.83 million for the
year ended Dec. 31, 2021. As of Dec. 31, 2022, the Company had
$231.09 million in total assets, $213.22 million in total
liabilities, and $17.87 million in total equity.
New York, New York-based Marcum Asia CPAs LLP, the Company's
auditor since 2018, issued a "going concern" qualification in its
report dated April 14, 2023, citing that the Company has a
significant working capital deficit, has incurred significant
losses and needs to raise additional funds to sustain its
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
STRATEGIES 360: U.S. Trustee Appoints Creditors' Committee
----------------------------------------------------------
Gregory Garvin, Acting U.S. Trustee for Region 18, appointed an
official committee to represent unsecured creditors in the Chapter
11 case of Strategies 360, Inc.
The committee members are:
1. Eric Sorenson
2309 N. 62nd St.
Seattle, WA 98103
Phone: 206-229-4995
Email: ericedsorenson@gmail.com
2. Jake Posey
The Posey Law Firm, P.C.
408 W. 11th Street, Fifth Floor
Austin, TX 78701
Phone: 512-646-0828
Email: jake@cposeylaw.com
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About Strategies 360
Strategies 360, Inc. is a full-service research, public affairs,
and communications firm in Seattle, Wash.
Strategies 360 filed Chapter 11 petition (Bankr. W.D. Wash. Case
No. 23-12303) on Nov. 27, 2023, with $1 million to $10 million in
assets and $10 million to $50 million in liabilities.
Judge Timothy W. Dore oversees the case.
Thomas A. Buford, Esq., at Bush Kornfeld, LLP is the Debtor's legal
counsel.
STRATHCONA RESOURCES: Moody's Raises CFR to 'B1', Outlook Stable
----------------------------------------------------------------
Moody's Investors Service upgraded Strathcona Resources Ltd.'s
corporate family rating to B1 from B2, the probability of default
rating to B1-PD from B2-PD and affirmed the B3 rating on the senior
unsecured notes. The outlook was changed to stable from positive.
"The upgrade reflects Moody's expectation that Strathcona will
sustain sufficient liquidity to repay its term loan by February
2024, leading to stronger metrics and better financial
flexibility," said Whitney Leavens, Moody's analyst. "Moody's
expect the company to remain focused on further debt reduction
until reaching its C$2.5 billion net debt target," she added.
The affirmation of the B3 senior unsecured rating positions the
notes two notches below the company's CFR, reflecting the priority
ranking of the sizeable C$2.3 billion first lien revolver. Moody's
did not upgrade the notes along with the CFR because the senior
unsecured rating was already positioned to reflect the previous
positive outlook and strong asset coverage.
RATINGS RATIONALE
Strathcona's B1 CFR is supported by: (1) strengthening credit
metrics supported by rising production levels and debt reduction;
(2) low decline rate and sustaining capital requirements
underpinned by concentration in heavy oil and oil sands assets; (3)
a sizable production and proved developed reserves base; and (4)
good production diversification across three core areas providing
optionality around capital allocation.
The rating is constrained by: (1) a limited history of organic
growth and short track record operating its consolidated portfolio
combined with rapid, large-scale deals involving execution risks;
(2) geographic concentration in Western Canada, exposing the
company to regional price discounts; and (3) an aggressive funding
strategy limiting financial flexibility to absorb earnings
volatility.
Strathcona's liquidity is adequate. As of Q3 2023, Moody's estimate
that Strathcona has about C$725 million in sources of liquidity
through year end 2024, consisting of minimal cash, about C$350
million available under the C$2.3 billion revolver expiring 2026
(pro-forma for the upsize following the Pipestone Energy Corp.
acquisition, assumption of Pipestone debt, and discounting the $150
million headroom required under the revolver for utilization toward
repayment of the term loan) and about $375 million in free cash
flow from Q3 2023 through year end 2024 at Moody's midcycle prices.
Uses of liquidity include the term loan due February 2024, with
about $350 million outstanding pro-forma for the $175 million
amortization in November 2023. The senior unsecured notes mature in
2026. Moody's expects Strathcona to remain in compliance with its
three financial covenants. Alternate liquidity is limited, as all
assets are pledged to the first lien credit facilities.
The stable outlook reflects Moody's expectation that credit metrics
and liquidity will improve with ongoing debt reduction.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if Strathcona maintains good
liquidity while demonstrating successful execution and the ability
to grow production organically at competitive costs while
maintaining positive free cash flow and RCF/debt above 40% and LFCR
above 1.5x.
The ratings could be downgraded if RCF/debt is below 15%, if the
LFCR is below 1x, or if Strathcona generates sustained negative
free cash flow or the company's liquidity profile deteriorates.
Strathcona Resources Ltd. is an oil and gas producer headquartered
in Calgary Alberta, with producing assets located across Western
Canada. Strathcona is a publicly traded company majority owned by
private equity firm Waterous Energy Fund.
The principal methodology used in these ratings was Independent
Exploration and Production published in December 2022.
TEGNA INC: Board of Directors Adopts Amendments to By-laws
----------------------------------------------------------
TEGNA Inc. disclosed in a Form 8-K Report filed with the Securities
and Exchange Commission that on December 6, 2023, the Board of
Directors of the Company approved and adopted amendments to the
By-laws of the Company, effective immediately. Among other things,
the amendments to the By-laws:
* provide that the Board may determine that a stockholder
meeting be held by means of remote communication;
* eliminate the requirement that a list of stockholders be
made available for inspection during a stockholder meeting, in
accordance with amendments to the Delaware General Corporation Law;
and
* address the adoption by the U.S. Securities and Exchange
Commission of "universal proxy" rules and related requirements,
including, among other things, to require evidence of compliance
with the Universal Proxy Rules and to require that a stockholder
directly or indirectly soliciting proxies from other stockholders
use a proxy card color other than white.
A full-text copy of the By-laws of TEGNA Inc., as amended through
December 6, 2023 is available at:
https://www.sec.gov/Archives/edgar/data/39899/000119312523290789/d536665dex31.htm
About TEGNA
Headquartered in Virginia, TEGNA Inc. is a broadcasting, digital
media and marketing services company. As of Sept. 30, 2023, TEGNA
has $7.20 billion in total assets and $4.22 billion in total
liabilities.
Egan-Jones Ratings Company on August 10, 2023, maintained its
'CCC+' foreign currency and local currency senior unsecured ratings
on debt issued by TEGNA Inc.
TRAXCELL TECHNOLOGIES: Seeks to Hire Ramey LLP as Counsel
---------------------------------------------------------
Traxcell Technologies LLC seeks approval from the U.S. Bankruptcy
Court for the Western District of Texas to employ Ramey LLP as
counsel to handle its Chapter 11 case.
The firm will be paid based upon its normal and usual hourly
billing rates. The firm will also be reimbursed for reasonable
out-of-pocket expenses incurred.
As disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
William P. Ramey, Esq.
5020 Montrose Blvd., Suite 800
Houston, TX 77006
Tel: (713) 426-3923
Fax: (832) 900-4941
About Traxcell Technologies LLC
Traxcell Technologies LLC provides innovative location-based
technology.
Traxcell Technologies LLC sought relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No. 23-10771) on
September 19, 2023. In the petition filed by Jeff Reed, as owner,
the Debtor reports estimated assets up to $50,000 and estimated
liabilities between $1 million and $10 million.
The Honorable Bankruptcy Judge Shad Robinson oversees the case.
The Debtor is represented by Charles R. Chesnutt, Esq. at Charles
R. Chesnutt, P.C.
UNCONDITIONAL LOVE: Committee Hires Hogan Lovells as Counsel
------------------------------------------------------------
The official committee of unsecured creditors of Unconditional Love
Inc. and its affiliates seeks approval from the U.S. Bankruptcy
Court for the District of Delaware to employ Hogan Lovells US LLP
as counsel.
The firm will provide these services:
a. advise the Committee with respect to its rights, powers, and
duties in these chapter 11 cases;
b. participate in in-person and telephonic meetings of the
Committee and subcommittees formed thereby;
c. assist and advise the Committee in its meetings and
negotiations with the Debtors and other parties in interest
regarding these chapter 11 cases;
d. assist the Committee in analyzing claims asserted against,
and interests in, the Debtors, and in negotiating with the holders
of such claims and interests, and bringing, or participating in,
objections or estimation proceedings with respect to such claims
and interests;
e. assist with the Committee's review of the Debtors' Schedules
of Assets and Liabilities, Statements of Financial Affairs, and
other financial reports prepared by the Debtors;
f. assist the Committee in its investigation of the acts,
conduct, assets, liabilities, management, and financial condition
of the Debtors and of the historic and ongoing operation of their
businesses;
g. assist the Committee in its analysis of and negotiations with
the Debtors or any third party related to, financing, asset
disposition transactions, compromises of controversies, and
assumption and rejection of executor contracts and unexpired
leases;
h. assist the Committee in its investigation of the validity of
the Debtors' prepetition debt and/or liens and any other potential
claims against prepetition debt holders;
i. assist the Committee in its analysis of, and negotiations
with the Debtors or any third party related to the formulation,
confirmation, and implementation of any chapter 11 plan and all
documentation related thereto;
j. assist and advise the Committee with respect to
communications with the general creditor body in these chapter 11
cases;
k. respond to inquiries from individual creditors as to the
status of, and developments in, these chapter 11 cases;
l. represent the Committee at hearings and other proceedings
before the Court and other courts or tribunals, as appropriate;
m. review and analyze complaints, motions, applications, orders,
and other pleadings filed with the Court, and advise the Committee
with respect to formulating positions thereon and filing responses
thereto;
n. assist the Committee in its review and analysis of, and
negotiations with the Debtors and their non-Debtor affiliates
related to, intercompany claims and transactions;
o. review and analyze analyses or reports prepared in connection
with the Debtors' potential claims and causes of action, advise the
Committee with respect to formulating positions thereon, and
perform such other diligence and independent analysis as may be
requested by the Committee;
p. advise the Committee with respect to applicable federal and
state regulatory issues, as such issues may arise in these chapter
11 cases;
q. assist the Committee in preparing pleadings and applications,
and pursuing or participating in adversary proceedings, contested
matters, and administrative proceedings as may be necessary or
appropriate in furtherance of the Committee's duties; and
r. perform such other legal services as may be necessary or as
may be requested by the Committee in accordance with the
Committee's powers and duties, as set forth in the Bankruptcy Code
or otherwise.
The firm will be paid at these rates:
Richard L. Wynne, Partner $1,690 per hour
David P. Simonds, Partner $1,690 per hour
Peiter Van Tol, Partner $1,585 per hour
Todd M. Schwartz, Partner $1,650 per hour
Christopher R. Bryant, Counsel $1,230 per hour
Edward J. McNeilly, Senior Associate $1,110 per hour
Katherine M. Lynn, Associate $820 per hour
Tracy Southwell, Paralegal $560 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
In accordance with Appendix B-Guidelines for Reviewing Applications
for Compensation and Reimbursement of Expenses Filed under 11
U.S.C. Sec. 330 for Attorneys in Larger Chapter 11 Cases, the
following is provided in response to the request for additional
information:
Question: Did you agree to any variations from, or
alternatives to, your standard or customary billing
arrangements for this engagement?
Response: No.
Question: Do any of the professionals included in this
engagement vary their rate based on the geographic
location of the bankruptcy case?
Response: No.
Question: If you represented the client in the 12 months
prepetition, disclose your billing rates and
material financial terms for the prepetition
engagement, including any adjustments during the 12
months prepetition. If your billing rates and
material financial terms have changed postpetition,
explain the difference and the reasons for the
difference.
Response: Not applicable.
Question: Has your client approved your prospective budget
and staffing plan, and, if so for what budget
period?
Response: Hogan Lovells is in the process of developing a
prospective
budget and staffing plan for the Committee’s review
and
approval. Hogan Lovells expects that the Committee,
the
Debtors, and the Office of the U.S. Trustee, will
maintain
active oversight of Hogan Lovells’ billing
practices.
David P. Simonds, Esq., a partner at Hogan Lovells US, LLP,
disclosed in a court filing that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
The firm can be reached through:
David P. Simonds, Esq.
Hogan Lovells US, LLP
1999 Avenue of the Stars, Suite 1400
Los Angeles, CA 90067
Tel: (310) 785-4600
Fax: (310) 785-4601
Email: david.simonds@hoganlovells.com
About Unconditional Love Inc.
Founded in February 2019, Hello Bello is a retailer of baby
necessities, selling products made with plant-based ingredients and
organic botanicals across the baby, family, and wellness markets.
The Company is headquartered in Los Angeles, California, with
manufacturing plants located in the United States, Mexico, Canada,
and China.
On Oct. 23, 2023, Unconditional Love Inc. and its affiliate filed
voluntary petitions for relief under Chapter 11 of the Bankruptcy
Code (Bankr. D. Del. Lead Case No. 23-11759). The Debtors listed
$100 million to $500 million in estimated assets and liabilities.
The petitions were signed by Erica Buxton as chief executive
officer.
Hon. Mary F. Walrath presides over the cases.
The Debtors tapped Young Stargatt & Taylor as Delaware bankruptcy
counsels. Willkie Farr & Gallagher LLP is the Debtors' general
bankruptcy counsel. Emerald Capital Advisors Corp. is the Debtors'
restructuring advisor. Jefferies LLC is the Debtors' investment
banker. Stretto, Inc. is the Debtors' notice, claims, solicitation
and balloting agent.
The U.S. Trustee for Regions 3 and 9 appointed an official
committee to represent unsecured creditors in the Chapter 11 cases
of Unconditional Love, Inc. and its affiliates. Pachulski Stang
Ziehl & Jones LLP as counsel. Hogan Lovells US LLP as counsel.
Force Ten Partners, LLC as financial advisor.
UNCONDITIONAL LOVE: Committee Hires Pachulski as Counsel
--------------------------------------------------------
The official committee of unsecured creditors of Unconditional Love
Inc. and its affiliates seeks approval from the U.S. Bankruptcy
Court for the District of Delaware to employ Pachulski Stang Ziehl
& Jones LLP as counsel.
The firm's services include:
a. assisting, advising, and representing the Committee in its
consultations with the Debtors regarding the administration of the
Chapter 11 Cases;
b. assisting, advising, and representing the Committee with
respect to the Debtors' retention of professionals and advisors
with respect to the Debtors' business and the Chapter 11 Cases;
c. assisting, advising, and representing the Committee in
analyzing the Debtors' assets and liabilities, investigating the
extent and validity of liens, and participating in and reviewing
any proposed asset sales, asset dispositions, financing
arrangements, and cash collateral stipulations or proceedings;
d. assisting, advising, and representing the Committee in any
manner relevant to reviewing and determining the Debtors' rights
and obligations under leases and other executory contracts;
e. assisting, advising, and representing the Committee in
investigating the acts, conduct, assets, liabilities, and financial
condition of the Debtors, the Debtors' operations, and the
desirability of the continuance of any portion of those operations,
and any other matters relevant to the Chapter 11 Cases or to the
formulation of a plan;
f. assisting, advising, and representing the Committee in
connection with any sale of the Debtors' assets; and
g. assisting, advising, and representing the Committee in its
participation in the negotiation, formulation, or objection to any
plan of liquidation or reorganization;
h. assisting, advising, and representing the Committee in
understanding its powers and duties under the Bankruptcy Code and
the Bankruptcy Rules and in performing other services as are in the
interests of those represented by the Committee;
i. assisting, advising, and representing the Committee in the
evaluation of claims and on any litigation matters, including
avoidance actions; and
j. providing such other services to the Committee as may be
necessary in the Chapter 11 Cases.
The firm will be paid at these rates:
Partners $995 to $1,995 per hour
Of Counsel $875 to $1,525 per hour
Associates $725 to $895 per hour
Paraprofessionals $495 to $545 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
In accordance with Appendix B-Guidelines for Reviewing Applications
for Compensation and Reimbursement of Expenses Filed under 11
U.S.C. Sec. 330 for Attorneys in Larger Chapter 11 Cases, the
following is provided in response to the request for additional
information:
Question: Did you agree to any variations from, or
alternatives to, your standard or customary billing
arrangements for this engagement?
Response: No.
Question: Do any of the professionals included in this
engagement vary their rate based on the geographic
location of the bankruptcy case?
Response: No.
Question: If you represented the client in the 12 months
prepetition, disclose your billing rates and
material financial terms for the prepetition
engagement, including any adjustments during the 12
months prepetition. If your billing rates and
material financial terms have changed postpetition,
explain the difference and the reasons for the
difference.
Response: Not applicable.
Question: Has your client approved your prospective budget
and staffing plan, and, if so for what budget
period?
Response: To be provided.
Laura Davis Jones, Esq., a partner at Pachulski Stang Ziehl & Jones
LL, 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:
Laura Davis Jones, Esq.
Edward A. Corma, Esq.
Pachulski Stang Ziehl & Jones LLP
919 North Market Street, 17th Floor
P.O. Box 8705
Wilmington, DE 19899-8705
Tel: (302) 652-4100
Fax: (302) 652-4400
Email: ljones@pszjlaw.com
ecorma@pszjlaw.com
About Unconditional Love Inc.
Founded in February 2019, Hello Bello is a retailer of baby
necessities, selling products made with plant-based ingredients and
organic botanicals across the baby, family, and wellness markets.
The Company is headquartered in Los Angeles, California, with
manufacturing plants located in the United States, Mexico, Canada,
and China.
On Oct. 23, 2023, Unconditional Love Inc. and its affiliate filed
voluntary petitions for relief under Chapter 11 of the Bankruptcy
Code (Bankr. D. Del. Lead Case No. 23-11759). The Debtors listed
$100 million to $500 million in estimated assets and liabilities.
The petitions were signed by Erica Buxton as chief executive
officer.
Hon. Mary F. Walrath presides over the cases.
The Debtors tapped Young Stargatt & Taylor as Delaware bankruptcy
counsels. Willkie Farr & Gallagher LLP is the Debtors' general
bankruptcy counsel. Emerald Capital Advisors Corp. is the Debtors'
restructuring advisor. Jefferies LLC is the Debtors' investment
banker. Stretto, Inc. is the Debtors' notice, claims, solicitation
and balloting agent.
The U.S. Trustee for Regions 3 and 9 appointed an official
committee to represent unsecured creditors in the Chapter 11 cases
of Unconditional Love, Inc. and its affiliates. Pachulski Stang
Ziehl & Jones LLP as counsel. Hogan Lovells US LLP as counsel.
Force Ten Partners, LLC as financial advisor.
UNCONDITIONAL LOVE: Committee Taps Force Ten as Financial Advisor
-----------------------------------------------------------------
The official committee of unsecured creditors of Unconditional Love
Inc. and its affiliates seeks approval from the U.S. Bankruptcy
Court for the District of Delaware to employ Force Ten Partners,
LLC as financial advisor.
The firm will provide these services:
a. participate in in-person and telephonic meetings of the
Committee and any subcommittees formed thereby;
b. assist and advise the Committee in its meetings and
negotiations with the Debtors and other parties in interest
regarding these chapter 11 cases;
c. familiarize and analyze the Debtors' cash collateral budgets,
assets and liabilities, and overall financial condition;
d. review financial and operational information furnished by the
Debtors;
e. assist the Committee in analyzing claims asserted against,
and interests in, the Debtors, and in negotiating with the holders
of such claims and interests;
f. assist with the Committee's review of the Debtors' Schedules
of Assets and Liabilities, Statements of Financial Affairs, and
other financial reports prepared by the Debtors;
g. assist the Committee in its investigation of the acts,
conduct, assets, liabilities, management, and financial condition
of the Debtors and of the historic and ongoing operation of their
businesses;
h. assist the Committee in its analysis of and negotiations with
the Debtors or any third party related to, financing, asset
disposition transactions, compromises of controversies, and
assumption and rejection of executor contracts and unexpired
leases;
i. monitor and assist with the sale process, interact with the
Debtors' investment banker and report to the Committee thereto;
j. assist the Committee in its investigation of the validity of
the Debtors' prepetition debt and/or liens and any other potential
claims against prepetition debt holders;
k. assist the Committee in its analysis of, and negotiations
with the Debtors or any third party related to the formulation,
confirmation, and implementation of any chapter 11 plan and all
documentation related thereto;
l. assist and advise the Committee with respect to
communications with the general creditor body in these chapter 11
cases;
m. review and analyze complaints, motions, applications, orders,
and other pleadings filed with the Court, and assisting the
Committee concerning responses thereto;
n. assist the Committee in its review and analysis of, and
negotiations with the Debtors and their non-Debtor affiliates
related to, intercompany claims and transactions;
o. review and analyze analyses or reports prepared in connection
with the Debtors' potential claims and causes of action, advise the
Committee with respect to formulating positions thereon, and
perform such other diligence and independent analysis as may be
requested by the Committee;
p. advise the Committee with respect to applicable federal and
state regulatory issues, as such issues may arise in these chapter
11 cases;
q. if necessary, participate as a witness in hearings before the
Court with respect to matters upon which Force 10 has provided
advice; and
r. provide other activities as approved by the Committee, the
Committee's counsel, and as agreed to by Force 10.
The firm will be paid at these rates:
Partners $795 to $950 per hour
Directors/Managers $550 to $695 per hour
Associates/Vice-Presidents $435 to $550 per hour
Analysts $255 to $395 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Edward Kim, a partner at Force Ten Partners LLC, disclosed in a
court filing that the firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Edward Kim
Force Ten Partners, LLC
5271 California Ave., Suite 270
Irvine, CA 92617
Telephone: (949) 357-2360
Email: ekim@force10partners.com
About Unconditional Love Inc.
Founded in February 2019, Hello Bello is a retailer of baby
necessities, selling products made with plant-based ingredients and
organic botanicals across the baby, family, and wellness markets.
The Company is headquartered in Los Angeles, California, with
manufacturing plants located in the United States, Mexico, Canada,
and China.
On Oct. 23, 2023, Unconditional Love Inc. and its affiliate filed
voluntary petitions for relief under Chapter 11 of the Bankruptcy
Code (Bankr. D. Del. Lead Case No. 23-11759). The Debtors listed
$100 million to $500 million in estimated assets and liabilities.
The petitions were signed by Erica Buxton as chief executive
officer.
Hon. Mary F. Walrath presides over the cases.
The Debtors tapped Young Stargatt & Taylor as Delaware bankruptcy
counsels. Willkie Farr & Gallagher LLP is the Debtors' general
bankruptcy counsel. Emerald Capital Advisors Corp. is the Debtors'
restructuring advisor. Jefferies LLC is the Debtors' investment
banker. Stretto, Inc. is the Debtors' notice, claims, solicitation
and balloting agent.
The U.S. Trustee for Regions 3 and 9 appointed an official
committee to represent unsecured creditors in the Chapter 11 cases
of Unconditional Love, Inc. and its affiliates. Pachulski Stang
Ziehl & Jones LLP as counsel. Hogan Lovells US LLP as counsel.
Force Ten Partners, LLC as financial advisor.
UNITED HERITAGE: A.M. Best Cuts Fin. Strength Rating to C++
-----------------------------------------------------------
AM Best has downgraded the Financial Strength Rating (FSR) to C++
(Marginal) from B+ (Good) and the Long-Term Issuer Credit Rating
(Long-Term ICR) to "b" (Marginal) from "bbb-" (Good) of United
Heritage Property & Casualty Company (UHPC) (Meridian, ID). In
addition, AM Best has downgraded the FSR to B (Fair) from B++
(Good) and the Long-Term ICR to "bb" (Fair) from "bbb" (Good) of
Sublimity Insurance Company (SIC) (Sublimity, OR). AM Best also has
affirmed the FSR of A- (Excellent) and the Long-Term ICR of "a-"
(Excellent) of United Heritage Life Insurance Company (UHLIC)
(Meridian, ID). The outlooks of these Credit Ratings (ratings) have
been revised to negative from stable. These companies are operating
subsidiaries of United Heritage Financial Group, Inc. (UHFG).
Lastly, AM Best has withdrawn the ratings of UHPC as UHFG has
requested to no longer participate in AM Best's interactive rating
process.
The ratings of UHPC reflect its balance sheet strength, which AM
Best assesses as weak, as well as its marginal operating
performance, limited business profile and appropriate enterprise
risk management.
The ratings of SIC reflect its balance sheet strength, which AM
Best assesses as adequate, as well as its marginal operating
performance, limited business profile and appropriate enterprise
risk management.
The ratings of UHLIC reflect its balance sheet strength, which AM
Best assesses as strong, as well as its adequate operating
performance, neutral business profile and appropriate enterprise
risk management.
The rating downgrades reflect weakening in UHPC's and SIC's balance
sheet strength assessment due to a material decline in policyholder
surplus at third-quarter 2023. UHPC and SIC have experienced
significant increases in underwriting losses driven by higher
frequency and severity on auto costs, along with higher repair
costs due to inflation. UHFG announced on Oct. 24, 2023, a
multipart strategic plan to address headwinds in its
property/casualty (P/C) operations. This plan includes realigning
the P/C products and business written between SIC and UHPC. As part
of the strategic realignment, it is expected that the UHFG will
realize significant expense synergies in its P/C business going
forward. In conjunction with the group's revised business strategy,
AM Best has withdrawn the ratings of UHPC at UHFG's request.
The negative outlooks reflect AM Best's concerns with UHPC's and
SIC's ability to recapitalize their balance sheets and effectively
manage the headwinds in the personal auto marketplace, along with
their concentrations of auto and property risks. The negative
outlooks on UHLIC's ratings reflect AM Best's concerns with a
significant decline in regulatory capital ratios in 2022 and the
financial flexibility of the group as it supports expected capital
shortfalls in the P/C business. AM Best will carefully monitor the
execution of the group's multipart strategic plan over the near
term.
VENTURE INC: Committee Hires Fishman Haygood LLP as Counsel
-----------------------------------------------------------
The official committee of unsecured creditors of Venture, Inc. and
its affiliates seeks approval from the U.S. Bankruptcy Court for
the Southern District of Mississippi to employ Fishman Haygood,
L.L.P. as counsel.
The firm will provide these services:
a. advise the Committee in connection with its powers and duties
under the Bankruptcy Code, the Bankruptcy Rules, and the Bankruptcy
Local Rules;
b. assist and advise the Committee in its consultation with the
Debtor relative to the administration of the case;
c. attend meetings and negotiate with the representatives of the
Debtor and other parties-in-interest;
d. assist and advise the Committee in its examination and
analysis of the conduct of the Debtor's affairs;
e. assist and advise the Committee in connection with any sale
of the Debtor's assets pursuant to section 363 of the Bankruptcy
Code;
f. assist the Committee in the review, analysis, and negotiation
of any chapter 11 plan(s) of reorganization or liquidation that may
be filed and assist the Committee in the review, analysis and
negotiation of the disclosure statement accompanying any such
plan(s);
g. assist the Committee in analyzing the claims asserted against
and interests asserted in the Debtor, in negotiating with the
holders of such claims and interests, and in bringing,
participating in, or advising the Committee with respect to
contested matters and adversary proceedings, including objections
or estimation proceedings, with respect to such claims or
interests;
h. assist with the Committee's review of the Debtor's Schedules
of Assets and Liabilities, Statement of Financial Affairs and other
financing reports prepared by the Debtor, and the Committee's
investigation of the acts, conduct, assets, liabilities and
financial condition of the Debtor and of the historic and ongoing
operation of the Debtor's business;
i. assist the Committee in its analysis of, and negotiations
with, the Debtor or any third party related to, among other things,
cash collateral issues, financings, compromises of controversies,
assumption or rejection of executory contracts and unexpired
leases, and matters affecting the automatic stay;
j. take all necessary action to protect and preserve the
interests of the Committee, including (i) possible prosecution of
actions on its behalf; and (ii) if appropriate, negotiations
concerning all litigation in which the Debtor is involved;
k. generally prepare, on behalf of the Committee, all necessary
motions, applications, answers, orders, reports, replies, responses
and papers in support of positions taken by the Committee;
l. appear, as appropriate, before this Court, the appellate
courts, and the United States Trustee, and protect the interests of
the Committee before those courts and before the United States
Trustee; and
m. perform all other necessary legal services in this case.
The firm will be paid at these rates:
Members $445 to $600 per hour
Associates $225 to $445 per hour
Paralegals $200 per hour
The firm will also be reimbursed for reasonable out-of-pocket
expenses incurred.
Tristan Manthey, Esq., a partner at Fishman Haygood, disclosed in a
court filing that the firm is a "disinterested person" as defined
in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Tristan E. Manthey, Esq.
Fishman Haygood, LLP
201 St. Charles Avenue, Suite 4600
New Orleans, LA 70170
Telephone: (504) 556-5561
Facsimile: (504) 310-0253
Email: tmanthey@fishmanhaygood.com
About Venture, Inc.
Venture Inc. and its affiliates filed their voluntary petitions for
relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Miss.
Lead Case No. 23-02186) on Sept. 22, 2023. In the petitions signed
by Daniel K. Myers, president, Venture Inc. disclosed up to $1
million in estimated assets and up to $10 million in total
liabilities.
Judge Jamie A. Wilson oversees the case.
The Debtors tapped Newman & Newman and the Law Offices of Craig M.
Geno, PLLC as counsel and Harper Rains Knight & Company, PA as
financial advisor.
VORNADO REALTY: S&P Downgrades ICR to 'BB+', Outlook Negative
-------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Vornado
Realty Trust to 'BB+' from 'BBB-'. S&P also lowered its issue-level
rating on the company's preferred stock to 'B+' from 'BB'. S&P
affirmed its 'BBB-' issue-level rating on the company's senior
unsecured notes and assigned a '2' recovery rating (85% rounded
estimate).
S&P said, "The negative outlook reflects our view that Vornado
could face continued pressure from secular headwinds. We expect its
fixed-charge coverage (FCC) will likely remain in the high-1x area
and refinancing risk will stay elevated as it addresses upcoming
maturities over the intermediate term, given sustained secular
headwinds and restrictive bank lending.
"Vornado's key credit metrics remain under pressure, and we do not
expect a material improvement over the near term. As of Sept. 30,
2023, Vornado's S&P Global Ratings'-adjusted FCC ratio was 1.7x,
compared with 2.2x a year prior. The deterioration in FCC was
largely driven by a full-year of elevated interest expense and its
exposure to variable-rate debt (approximately 33% of its capital
structure). We do not expect this metric to improve over the near
term as the company addresses upcoming debt maturities in a
higher-for-longer interest rate environment. As of Sept. 30, 2023,
of the company's $3.6 billion of floating-rate debt, only $966
million is not subject to interest rate swaps or caps. Moreover, we
think Vornado's sizable cash position ($1.0 billion) partially
mitigates its risk from rising interest rates.
"We expect Vornado's operating performance to remain challenged
from secular headwinds, though its high-quality portfolio should
hold up better than most peers. As of Sept. 30, 2023, the company's
office portfolio was 91.6% occupied and its New York office rent
spreads were down 2.5% on a cash basis. Despite higher occupancy
than peers, Vornado's average initial rent remains relatively
unchanged since the pandemic despite the significant increase in
inflation. We believe the company's occupancy will remain
relatively flat over the next two years, supported by a manageable
office lease expiration schedule, with 4.9% of its annualized base
rent (ABR) remaining in 2023, 6.0% in 2024, and 5.0% in 2025.
Similarly, we believe Vornado's development projects will create
value over the medium to long term and enhance its high-quality
portfolio, enabling it to command higher rents and drive leasing
demand. That said, we expect office headwinds will remain, with
lower retention and weak office utilization, which could add
pressure to Vornado's occupancy and rental rates.
"Should operating performance weaken, we think upcoming refinancing
could pose more of a challenge, especially as bank financing has
become materially more restrictive as banks are (in general) trying
to reduce their exposure to commercial real estate (and office in
particular).
"The negative outlook reflects our view that Vornado could face
continued pressure from secular headwinds, though the company's
above-average portfolio should hold up relatively better than
peers. It also reflects our expectation that credit protection
measures will remain stressed. FCC will likely remain in the
high-1x area due to sustained high interest rates and the company's
modest exposure to variable-rate debt. Moreover, refinancing risk
is elevated as it addresses upcoming maturities over the
intermediate term, given sustained secular headwinds and
restrictive bank lending."
WEATHERFORD INT'L: Appeals Court Tosses Misstatements Suit
----------------------------------------------------------
Ben Miller of Bloomberg Law reports that Weatherford International
PLC, as well as several current and former executives, will no
longer face allegations that they misrepresented a plan to avoid
bankruptcy for the oilfield service company after a panel of appeal
judges affirmed dismissal of the suit on Thursday, December 14,
2023.
The decision in US Court of Appeals for the Fifth Circuit upholds a
federal judge's 2021 ruling to toss the case for lack of standing
in US District Court for the Southern District of Texas.
About Weatherford
Weatherford (NYSE: WFT), an Irish public limited company and Swiss
tax resident -- http://www.weatherford.com/-- is a multinational
oilfield service company providing innovative solutions, technology
and services to the oil and gas industry. The Company operates in
over 80 countries and has a network of approximately 650 locations,
including manufacturing, service, research and development and
training facilities and employs approximately 26,000 people.
Weatherford reported a net loss attributable to the company of
$2.81 billion for the year ended Dec. 31, 2018, compared to a net
loss attributable to the company of $2.81 billion for the year
ended Dec. 31, 2017.
As of March 31, 2019, Weatherford had $6.51 billion in total
assets, $10.62 billion in total liabilities, and a total
shareholders' deficiency of $4.10 billion.
On July 1, 2019, Weatherford International plc, Weatherford
International, LLC, and Weatherford International Ltd. sought
Chapter 11 protection (Bankr. S.D. Tex. Lead Case No. 19-33694).
The Hon. David R. Jones is the case judge.
The Debtors tapped Hunton Andrews Kurth LLP and Latham & Watkins
LLP as counsel; Alvarez & Marsal North America LLC as financial
advisor; Lazard Freres & Co. LLC as investment banker; and Prime
Clerk LLC as claims agent.
Henry Hobbs Jr., acting U.S. trustee for Region 7, on July 17,
2019, appointed three creditors to serve on the official committee
of unsecured creditors in the Chapter 11 cases.
WILLIAMSBURG BOUTIQUE: Hires Pastore LLC as Special Counsel
-----------------------------------------------------------
Williamsburg Boutique LLC seeks approval from the U.S. Bankruptcy
Court for the Southern District of New York to employ Pastore LLC
as special litigation counsel.
The Debtor needs the firm's legal assistance in connection with a
case filed in the Superior Court of Connecticut, Judicial District
of Stamford-Norwalk captioned as Bankwell Bank v. Juda Klein,
Mendel Klein, and Simon Tyrnauer, Case No. FST-CV21-6050150-S. With
the assistance of Pastore, the Debtor has been in the process of
removing and transferring the State Court Action to this Court, the
jurisdiction that the Debtor believes is proper for the State Court
Action.
The firm received from the Debtor a retainer of $1,000.
The firm will be paid based upon its normal and usual hourly
billing rates. The firm will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Juda Klein, Esq., a partner at Pastore LLC, disclosed in a court
filing that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Juda Klein, Esq.
PASTORE LLC
4 High Ridge Park
Stamford, CT 06905
Tel: (203) 658-8454
About Williamsburg Boutique LLC
The Debtor is a Single Asset Real Estate (as defined in 11 U.S.C.
Section 101(51B)). The Debtor owns real property located at 80
Ainslie Street, Brooklyn, NY valued at $15.7 million.
Williamsburg Boutique LLC in Bedford Hills, NY, filed its voluntary
petition for Chapter 11 protection (Bankr. S.D. Tex. Case No.
23-22587) on August 7, 2023, listing $15,700,000 in assets and
$18,227,723 in liabilities. Juda Klein as manager, signed the
petition.
Judge Sean H. Lane oversees the case.
DAVIDOFF HUTCHER & CIRTON LLP serves as the Debtor's legal counsel.
WOMEN'S CARE: Moody's Affirms 'B3' CFR, Outlook Remains Negative
----------------------------------------------------------------
Moody's Investors Service has affirmed Women's Care Holdings, Inc.
B3 corporate family rating, the B3-PD probability of default
rating, the B2 backed senior secured first lien term loan rating,
the B2 backed senior secured first lien revolving credit facility
rating, and the Caa2 backed senior secured second lien term loan
rating. The outlook is maintained at negative.
The B3 CFR rating affirmation and negative outlook continues to
reflect the weaker than expected operating performance and the
downside risks with the Arizona operations returning to
profitability over the next 12 months. Women's Care adequate
liquidity provides a temporary buffer to manage through the
underperformance.
RATINGS RATIONALE
Women's Care's B3 corporate family rating is constrained by: (1)
elevated financial leverage with Moody's adjusted debt to EBITDA of
8.9x and weak EBITA to interest expense of 0.7x as at September 30,
2023; (2) small scale with revenue of under $500 million; (3) high
geographic concentration with Florida accounting for around 80% of
revenue; (4) risks inherent to the execution of its active
acquisition growth strategy and private equity ownership; and (5)
social risks including political pressure to address the
affordability of healthcare services, which could impact growth and
profitability.
The rating benefits from: (1) a strong market position in four core
metropolitan areas; (2) a recurring patient base and stable demand
characteristics associated with OB/GYN services; (3) long-term
growth prospects supported by the early stage of consolidation in
the fragmented OB/GYN market and the expansion of ancillary
services; and (4) a solid payor profile, with the majority of
revenue sourced from commercial reimbursements (88% year to date
2023).
Women's Care has adequate liquidity. The company's sources of
liquidity will total around $75 million through 2024 and will be
available to fund the mandatory $7 million payment to the
promissory note and about $4 million of debt amortizations. Women's
Care's liquidity will be supported by unrestricted cash of $9
million, $55 million availability (Q3 2023) under a $70 million
committed revolving credit facility expiring December 2025 and
expectations of around $10 million free cash flow through 2024. The
secured revolver is subject to a springing first lien net leverage
covenant of 8.15x when more than 35% drawn. The company would have
a comfortable covenant cushion if triggered. The company has
limited capacity to sell assets to raise cash.
Women's Care's first lien facilities ($70 million revolver expiring
December 2025 and $360 million term loan due January 2028) are
rated B2, one notch above the B3 CFR given higher recovery and
priority ranking within the capital structure. The $120 million
second lien term loan due January 2029 is rated two notches below
the CFR at Caa2, reflecting its subordination to the first lien
debt. The debt is guaranteed by the holding company Women's Care
Investments, Inc. and select operating subsidiaries limited to
Women's Care Kentucky, LLC. and Physician Business Services, LLC,
which controls all practice management service agreements,
including centralized cash management for non-guarantor practice
subsidiaries.
The negative outlook reflects the company's underperformance, that
has resulted in high financial leverage and weak interest coverage
that remains below 1x. It further incorporates the downside risks
with the Arizona operations not returning to profitability over the
next 12 months.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if Women's Care successfully executes
its growth strategy, evidenced by expanded scale and geographic
diversity. A demonstrated track record of positive free cash flow
and sustained Moody's-adjusted debt/EBITDA below 6x would also
support an upgrade.
The ratings could be downgraded if there was a deterioration of
operating performance, weakening liquidity, negative free cash
flow, or interest coverage (EBITA to interest expense) is
sustainably below 1x.
Headquartered in Tampa, Florida, Women's Care is a provider of a
variety of women's health services, including obstetrics and
gynecology, fertility care and genetic counseling, among others.
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
[*] Leading Retailers That Closed Down or Went Bankrupt in 2023
---------------------------------------------------------------
Marc Sternfield of The Hill reports on the major retailers went out
of business in 2023.
"As consumers grow increasingly comfortable buying things online,
the overhead of a physical store becomes a liability for merchants
trying to compete with lower digital prices."
2023 was a difficult year for many brick and mortar businesses.
Many struggled to emerge from the pandemic and faced high mortgage
rates.
Some businesses that closed for good include Bed Bath & Beyond,
Tuesday Morning and Shoe City.
The year 2023 was rough for many established retailers that
struggled to emerge from the pandemic or were impacted by other
economic factors, such as high mortgage rates. Here are some that
closed for good in 2023.
Bed Bath & Beyond
Bed Bath & Beyond, once a go-to for all imaginable home
accessories, filed for bankruptcy in April and promptly closed all
896 of its brick-and-mortar stores nationwide, including its Buy
Buy Baby brand. Now under new ownership, Bed Bath & Beyond still
serves customers through its relaunched website.
Tuesday Morning
Tuesday Morning, a discount home retailer that once had 700
locations in the U.S., filed for bankruptcy in February and
eventually closed all stores.
Z Gallerie
California-based Z Gallerie announced in early November that it too
was closing all stores and going online only. The home décor and
furniture retailer once had 54 locations.
Christmas Tree Shops
Christmas Tree Shops once had 72 stores nationwide specializing in
home furnishing and holiday-themed decor. It went bankrupt in May
and closed up shop in August.
Shoe City
Shoe City went belly up in May after filing for Chapter 11
protection. The Baltimore-based footwear chain had been in business
for 74 years.
Other large retailers, including Foot Locker, Bath & Body Works,
Gap, Banana Republic, Party City, Target and Walmart, along with
pharmacy chains CVS, Walgreens and Rite Aid also shuttered hundreds
of U.S. locations.
KTLA 5 News consumer reporter David Lazarus says many big box
stores continue to struggle with adapting to the times.
"Store closures since the pandemic reflect the ongoing impact of
e-commerce on brick-and-mortar retailers," says Lazarus. "As
consumers grow increasingly comfortable buying things online, the
overhead of a physical store becomes a liability for merchants
trying to compete with lower digital prices."
The elephant in the room, Lazarus says, is of course Amazon.
"The retailers facing the most trouble, such as Bed Bath & Beyond,
are the ones specializing in goods you don't need to try on before
buying. They're now living in Amazon’s world, and Amazon can sell
almost anything for less."
Another venerable retailer, Macy's, has been closing stores for
several years as part of its restructuring plan. Now, an investor
group has reportedly made a $5.8 billion offer to take the company
private.
"The plan, if the deal goes through, is to take the company off the
stock market and to seek economies of scale and efficiencies that
make it more competitive online," Lazarus says. "Going forward,
brick-and-mortar retailers will keep scrambling to negotiate lower
rents and seek other ways to cut costs. Or they'll go private so
they don't have investors breathing down their necks. That's
apparently the plan with Macy's."
[] Han Kun LLP Opens New York City Office
-----------------------------------------
Han Kun Law Offices ("Han Kun" or the "Firm") on Dec. 18 announced
the official opening and operation in New York City of Han Kun LLP
("Han Kun NY"), a New York limited liability partnership
established in collaboration with US-based professionals.
In the wake of Han Kun Singapore office which went into operation
in April of this year, Han Kun NY is another strategically
important step of the Firm to further expand our global footprint.
The new office represents the Firm's commitment to strengthen our
capabilities to serve our clients' interest worldwide. Not only is
Han Kun NY a critical mix in the expansion of our global network,
but also a requisite platform to better serve the needs of our
clients operating overseas.
Han Kun NY is located on the 2nd Floor of the Rockefeller Center,
620 Fifth Avenue, New York City, the United States of America. The
new office will work closely with other US-based professional
service providers as well as the Firm's other offices to meet our
clients' needs in the United States. We will continue to follow the
philosophy of "China Practice, Global Vision" and provide
pragmatic, efficient, integrated and quality legal services to our
corporate and individual clients and help them implement their
global strategies and development in the United States and
elsewhere in the world.
About Han Kun
Han Kun -- http://www.hankunlaw.com-- is a leading full-service
law firm in China. Over the years, Han Kun has been widely and
consistently recognized as a leader in complex cross-border and
domestic transactions and compliance matters. Its main practice
areas include private equity, mergers and acquisitions,
international and domestic capital markets, investment funds, asset
management, compliance, banking and finance, aviation finance,
foreign direct investment, antitrust/competition, data protection,
private client/wealth management, intellectual property, bankruptcy
and restructuring and dispute resolution. It has over 800
professionals located in Beijing, Shanghai, Shenzhen, Hong Kong,
Haikou, Wuhan, Singapore and New York City.
[^] Large Companies with Insolvent Balance Sheet
------------------------------------------------
Total
Share- Total
Total Holders' Working
Assets Equity Capital
Company Ticker ($MM) ($MM) ($MM)
------- ------ ------ -------- -------
AEMETIS INC AMTX US 277.4 (200.0) (35.9)
ALNYLAM PHARMACE ALNY US 3,839.1 (165.9) 2,035.7
ALPHATEC HOLDING ATEC US 670.2 (20.6) 185.5
ALTRIA GROUP INC MO US 36,469.0 (3,357.0) (6,991.0)
AMC ENTERTAINMEN AMC US 8,793.1 (2,138.0) (548.7)
AMC ENTERTAINMEN AMCE AV 8,793.1 (2,138.0) (548.7)
AMERICAN AIRLINE AAL US 65,711.0 (5,136.0) (7,672.0)
AON PLC-CLASS A AON US 33,112.0 (486.0) 403.0
AULT DISRUPTIVE ADRT/U U 2.5 (3.0) (1.8)
AUTOZONE INC AZO US 16,292.6 (4,349.9) (1,828.8)
AVIS BUDGET GROU CAR US 32,304.0 (28.0) (537.0)
BATH & BODY WORK BBWI US 5,243.0 (2,124.0) 550.0
BAUSCH HEALTH CO BHC US 27,064.0 (235.0) 824.0
BAUSCH HEALTH CO BHC CN 27,064.0 (235.0) 824.0
BELLRING BRANDS BRBR US 691.6 (323.5) 274.0
BEYOND MEAT INC BYND US 929.2 (362.9) 392.8
BIOCRYST PHARM BCRX US 522.9 (411.0) 411.7
BIOTE CORP-A BTMD US 149.7 (51.3) 92.7
BOEING CO/THE BA US 134,281.0 (16,717) 13,873.0
BOMBARDIER INC-A BBD/A CN 12,524.0 (2,470.0) (1.0)
BOMBARDIER INC-A BDRAF US 12,524.0 (2,470.0) (1.0)
BOMBARDIER INC-B BBD/B CN 12,524.0 (2,470.0) (1.0)
BOMBARDIER INC-B BDRBF US 12,524.0 (2,470.0) (1.0)
BOOKING HOLDINGS BKNG US 25,635.0 (625.0) 5,647.0
BOSTON PIZZA R-U BPZZF US 146.6 (241.3) 2.7
BOSTON PIZZA R-U BPF-U CN 146.6 (241.3) 2.7
BOX INC- CLASS A BOX US 1,033.8 (48.9) 113.7
BRIDGEBIO PHARMA BBIO US 655.0 (1,193.7) 481.6
BRINKER INTL EAT US 2,474.8 (156.3) (364.5)
BROOKFIELD INF-A BIPC CN 10,973.0 (764.0) (3,410.0)
BROOKFIELD INF-A BIPC US 10,973.0 (764.0) (3,410.0)
CALUMET SPECIALT CLMT US 2,804.8 (197.6) (456.8)
CARDINAL HEALTH CAH US 43,710.0 (3,490.0) (377.0)
CARGO THERAPEUTI CRGX US - - -
CARVANA CO CVNA US 7,025.0 (202.0) 1,791.0
CEDAR FAIR LP FUN US 2,318.6 (565.8) (141.1)
CENTRUS ENERGY-A LEU US 644.7 (24.0) 194.6
CHENIERE ENERGY CQP US 18,072.0 (973.0) (195.0)
CINEPLEX INC CGX CN 2,225.6 (30.2) (252.1)
CINEPLEX INC CPXGF US 2,225.6 (30.2) (252.1)
COMPOSECURE INC CMPO US 195.0 (238.8) 75.4
CONDUIT PHARMACE CDT US 12.0 (1.1) 5.8
CONSENSUS CLOUD CCSI US 706.5 (199.3) 107.5
COOPER-STANDARD CPS US 2,029.0 (57.4) 258.8
CPI CARD GROUP I PMTS US 292.1 (56.7) 115.2
CYTOKINETICS INC CYTK US 740.6 (438.8) 483.7
DELEK LOGISTICS DKL US 1,709.5 (139.2) 32.3
DELL TECHN-C DELL US 83,264.0 (2,570.0) (11,890.0)
DENNY'S CORP DENN US 479.8 (35.8) (56.0)
DIGITALOCEAN HOL DOCN US 1,425.1 (358.8) 287.2
DINE BRANDS GLOB DIN US 1,659.6 (273.7) (120.5)
DOMINO'S PIZZA DPZ US 1,619.5 (4,141.5) 232.7
DOMO INC- CL B DOMO US 208.2 (150.8) (80.6)
DROPBOX INC-A DBX US 3,010.6 (350.3) 270.3
EMBECTA CORP EMBC US 1,214.4 (821.7) 395.6
ENGENE HOLDINGS ENGN US 0.0 (0.1) (0.1)
ETSY INC ETSY US 2,449.2 (622.5) 795.0
EVOLUS INC EOLS US 168.0 (19.4) 43.5
FAIR ISAAC CORP FICO US 1,575.3 (688.0) 188.8
FENNEC PHARMACEU FRX CN 19.0 (10.5) 15.0
FENNEC PHARMACEU FENC US 19.0 (10.5) 15.0
FERRELLGAS PAR-B FGPRB US 1,472.1 (291.2) 133.9
FERRELLGAS-LP FGPR US 1,472.1 (291.2) 133.9
FOGHORN THERAPEU FHTX US 313.4 (57.4) 213.4
GCM GROSVENOR-A GCMG US 504.7 (93.7) 108.9
GEN RESTAURANT G GENK US 175.6 36.5 10.9
GODADDY INC-A GDDY US 6,499.2 (973.4) (1,448.3)
GREEN PLAINS PAR GPP US 120.3 (1.1) 4.9
GROUPON INC GRPN US 523.9 (49.3) (158.1)
H&R BLOCK INC HRB US 2,511.1 (344.9) (160.9)
HCM ACQUISITI-A HCMA US 295.2 276.9 1.0
HCM ACQUISITION HCMAU US 295.2 276.9 1.0
HERBALIFE LTD HLF US 2,724.7 (1,103.5) 180.7
HILTON WORLDWIDE HLT US 15,200.0 (1,753.0) (1,077.0)
HP INC HPQ US 37,004.0 (1,069.0) (6,511.0)
IMMUNITYBIO INC IBRX US 432.4 (410.6) 124.8
INSMED INC INSM US 1,324.9 (289.4) 729.8
INSPIRED ENTERTA INSE US 353.5 (50.3) 64.4
IRONWOOD PHARMAC IRWD US 524.1 (325.7) (27.0)
JACK IN THE BOX JACK US 3,001.1 (718.3) (233.6)
LESLIE'S INC LESL US 1,034.4 (161.4) 194.5
LIFEMD INC LFMD US 40.7 (11.1) (7.6)
LINDBLAD EXPEDIT LIND US 851.6 (91.7) (59.9)
LOWE'S COS INC LOW US 42,519.0 (15,147) 3,472.0
LUMINAR TECHNOLO LAZR US 552.9 (165.7) 303.7
MADISON SQUARE G MSGS US 1,366.1 (358.5) (352.9)
MADISON SQUARE G MSGE US 1,348.5 (235.2) (321.1)
MANNKIND CORP MNKD US 320.3 (251.8) 129.2
MARRIOTT INTL-A MAR US 25,267.0 (661.0) (3,995.0)
MATCH GROUP INC MTCH US 4,248.9 (299.0) 548.1
MBIA INC MBI US 2,990.0 (1,228.0) -
MCDONALDS CORP MCD US 52,089.3 (4,854.8) 2,847.3
MCKESSON CORP MCK US 66,091.0 (1,464.0) (3,616.0)
MEDIAALPHA INC-A MAX US 133.0 (99.7) (9.2)
METTLER-TOLEDO MTD US 3,288.7 (105.9) 126.5
MSCI INC MSCI US 4,865.5 (1,049.1) 434.7
NATHANS FAMOUS NATH US 65.6 (35.4) 40.0
NEW ENG RLTY-LP NEN US 386.2 (64.7) -
NOVAVAX INC NVAX US 1,657.2 (678.4) (461.8)
NUTANIX INC - A NTNX US 2,570.6 (642.2) 818.4
O'REILLY AUTOMOT ORLY US 13,551.8 (1,760.5) (2,453.4)
ORGANON & CO OGN US 11,012.0 (589.0) 1,559.0
OTIS WORLDWI OTIS US 10,390.0 (4,610.0) -
PAPA JOHN'S INTL PZZA US 877.6 (459.0) (54.8)
PELOTON INTERA-A PTON US 2,672.8 (371.0) 837.5
PETRO USA INC PBAJ US 0.0 (0.1) (0.1)
PHATHOM PHARMACE PHAT US 237.0 (17.8) 202.7
PHILIP MORRIS IN PM US 62,927.0 (7,706.0) (2,354.0)
PITNEY BOWES INC PBI US 4,422.7 (125.1) (23.0)
PLANET FITNESS-A PLNT US 2,944.8 (164.9) 267.3
PROS HOLDINGS IN PRO US 431.9 (54.9) 42.5
PTC THERAPEUTICS PTCT US 1,259.9 (670.8) 48.2
RAPID7 INC RPD US 1,399.3 (161.6) 28.3
RE/MAX HOLDINGS RMAX US 597.9 (63.3) 21.3
RED ROBIN GOURME RRGB US 777.3 (8.7) (91.4)
REVANCE THERAPEU RVNC US 532.5 (106.2) 306.4
RH RH US 4,240.6 (333.2) 351.9
RIMINI STREET IN RMNI US 335.0 (53.1) (56.7)
RINGCENTRAL IN-A RNG US 2,182.5 (285.0) 447.0
SABRE CORP SABR US 4,741.7 (1,267.9) 288.1
SBA COMM CORP SBAC US 10,334.2 (5,131.4) (203.2)
SCOTTS MIRACLE SMG US 3,413.7 (267.3) 624.1
SEAGATE TECHNOLO STX US 7,196.0 (1,702.0) 163.0
SEAWORLD ENTERTA SEAS US 2,575.5 (252.4) (30.6)
SIRIUS XM HOLDIN SIRI US 10,129.0 (2,893.0) (2,117.0)
SIX FLAGS ENTERT SIX US 2,717.1 (335.3) (280.1)
SLEEP NUMBER COR SNBR US 961.0 (420.7) (721.3)
SPARK I ACQUISIT SPKLU US 1.2 (3.0) (4.0)
SPARK I ACQUISIT SPKL US 1.2 (3.0) (4.0)
SPIRIT AEROSYS-A SPR US 6,538.1 (855.7) 971.2
SQUARESPACE IN-A SQSP US 904.9 (288.0) (204.6)
STARBUCKS CORP SBUX US 29,445.5 (7,987.8) (2,041.9)
SYMBOTIC INC SYM US 1,050.7 (2.7) (33.7)
TORRID HOLDINGS CURV US 509.5 (209.2) (36.1)
TRANSDIGM GROUP TDG US 19,970.0 (1,978.0) 5,159.0
TRAVEL + LEISURE TNL US 6,655.0 (997.0) 648.0
TRINSEO PLC TSE US 3,271.2 (21.4) 614.8
TRIUMPH GROUP TGI US 1,673.1 (668.2) 582.6
UBIQUITI INC UI US 1,388.1 (63.1) 815.6
UNITI GROUP INC UNIT US 4,981.3 (2,444.4) -
UROGEN PHARMA LT URGN US 193.6 (42.0) 156.3
VECTOR GROUP LTD VGR US 1,101.0 (773.4) 356.4
VERISIGN INC VRSN US 1,695.9 (1,633.4) (166.6)
WAVE LIFE SCIENC WVE US 199.9 (32.6) 58.6
WAYFAIR INC- A W US 3,360.0 (2,708.0) (212.0)
WINGSTOP INC WING US 351.7 (475.4) 65.5
WINMARK CORP WINA US 55.5 (34.6) 32.2
WORKIVA INC WK US 1,149.1 (113.7) 509.1
WPF HOLDINGS INC WPFH US 0.0 (0.3) (0.3)
WW INTERNATIONAL WW US 1,032.3 (675.2) 24.8
WYNN RESORTS LTD WYNN US 13,336.3 (1,709.0) 2,517.1
XBP EUROPE HOLDI XBP US 7.9 (25.4) (11.6)
YELLOW CORP YELLQ US 2,147.6 (447.8) (1,098.0)
YUM! BRANDS INC YUM US 6,071.0 (8,190.0) 201.0
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.
Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
The Sunday TCR delivers securitization rating news from the week
then-ending.
TCR subscribers have free access to our on-line news archive.
Point your Web browser to http://TCRresources.bankrupt.com/and use
the e-mail address to which your TCR is delivered to login.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Philadelphia, Pa., USA.
Randy Antoni, Jhonas Dampog, Marites Claro, Joy Agravante,
Rousel Elaine Tumanda, Joel Anthony G. Lopez, Psyche A. Castillon,
Ivy B. Magdadaro, Carlo Fernandez, Christopher G. Patalinghug, and
Peter A. Chapman, Editors.
Copyright 2023. All rights reserved. ISSN: 1520-9474.
This material is copyrighted and any commercial use, resale or
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are $25 each. For subscription information, contact Peter A.
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*** End of Transmission ***